Annual report 2011 to 2012 by Banyule City Council

Annual Report 2011-2012

SERVICE CENTRES

Ivanhoe: 275 Upper Heidelberg Road, Ivanhoe 3079 Rosanna: 44 Turnham Avenue, Rosanna 3084 Greensborough: 9 â&#x20AC;&#x201C; 13 Flintoff Street, Greensborough 3088 Parks and Buildings: 268 Banksia Street, Heidelberg West 3081 Operations Centre: Corner Banksia Street and Waterdale Road, Heidelberg West 3081 Postal Address: DX: Telephone: National Relay: Fax: Email: Internet:

PO Box 51, Ivanhoe 3079 97904 Ivanhoe 9490 4222 If your hearing or speech is impaired, you can call us via the National Relay Service on 133 677 (TTY) or 1300 555 727 (ordinary handset) and ask for 9490 4222 9499 9475 enquiries@banyule.vic.gov.au www.banyule.vic.gov.au

Contents

Page No

MAYOR AND CEO STATEMENT

CITY PLAN

BANYULE’S PROFILE

OUR COUNCIL

CORPORATE GOVERNANCE  Delegation of Powers

13 13

 Councillors’ Legal Obligations

 Disclosure of Interests

 Councillor Code of Conduct

14 14 15

 Staff Code of Conduct  Assembly of Councillors  Councillor Remuneration Council Meetings

15 16 16

 Public Participation in Council Meetings  Councillor Briefing Sessions Council Committees Councillor Attendance Ward Funding Consultation Audit Committee Community Grants Public Information

 Freedom of Information

16 21 22 24 26 28 29 29

 Whistleblowers Protection Act

 Information Privacy Act

30 30

 Documents available for public inspection Local Laws

31 31

 Codes of Practice

 Orders of Council Our Professional Advisors National Competition Policy Compliance THE ORGANISATION

32 33 34

The Structure

Workforce Development  Equal Employment Opportunity Program

35 35 35

 Staff Profile

 Workforce Strategy and Action Plan

Contents

Page No

CALENDAR OF COUNCIL AND COMMUNITY EVENTS A SUMMARY OF OUR PERFORMANCE

37 38

Introduction

What success looks like to us

 People Community Strengthening and Support

 Planet Environmental Sustainability

 Place Sustainable Amenity and Built Environment

 Prosperity Economic Development

 Participation Community Involvement and Civic Life

 Use our Resources Wisely BANYULE’S FOUR YEAR STRATEGIC INDICATORS

VICTORIAN LOCAL GOVERNMENT INDICATORS

PERFORMANCE STATEMENT

GLOSSARY

FINANCIAL STATEMENTS

STANDARD STATEMENTS COMPARISON REPORTS

162

Mayor and CEO Statement WELCOME TO THE ANNUAL REPORT 2011-2012 On behalf of Council, we present to you Banyule City Council’s 2011-2012 Annual Report. Many exciting changes happened across Banyule over the past 12 months, as a result of Council focusing its efforts to maintain and enhance important community assets like sporting pavilions, roads, footpaths and bridges in line with year three of Banyule’s City Plan 2009 – 2013. The plan continued to place a strong focus on sustaining our economic stability and planning for the renewal of our existing assets. The 5 ‘P’ objectives continue to drive the areas of focus and guide us to achieve the best we can for our community. No project illustrates this more so than WaterMarc in Greensborough due to open in September. WaterMarc will be a world-class leisure and recreation facility for the whole community to enjoy. The complex will offer a number of community activities and the high adrenalin Tantrum Alley thrill ride. Brand new community spaces will also be created to cater for people in the area actively participating in community life. The financial result for Banyule for the 2011/2012 financial year is an operating deficit of $2.67 million. This result has come about by our requirement to recognise an unfunded superannuation liability, associated with the mandatory participation in a Vision Super Defined Benefit Plan. This liability, disclosed only at the end of the financial year by the fund, was $11.4 million. If Council had not been called upon to recognise this expense and liability, an operating surplus would have been achieved. Council has the option to pay this liability off over a period of fifteen years. The operating result allows for some capital works projects to be completed during the next financial year and incorporates the receipt of some large value government grants late in the year of which $4.9 million were unspent at the end of the financial year. The operating result, ignoring the effect of the additional superannuation expense, indicates that Councils financial management strategies are effective. Council has total assets of $1.28 billion, of which $1.21 billion are infrastructure, property, plant and equipment. Council also has healthy unrestricted cash assets of $52.3 million at year end. Council has worked diligently to deliver a clear and practical budget that encompasses a balance between careful investment and responsible expenditure. Council is facing a delicate balancing act at the moment. With escalating operating costs and continued cost shifting from the State and Federal Government, as a consequence there were some tough decisions in this year’s budget process. Historically, Council has maintained lower rates compared to other municipalities but this year there are number of external pressures on our bottom line. The State Government landfill levy has increased from $9 per tonne to $48.40 per tonne over the last three years and will increase to $58.50 over the next two years. Council continues to advocate to both levels of government on a range of issues that effect the lives of those who live, work and play in Banyule. These critical issues raised by the community have included: pursuit of an intensive National Broadband Network (NBN) rollout for the Northern Region; funding for the Olympic Village Learning Hub, improved public transport; waste management; public street lighting; roadside maintenance and electrical line clearance. Council recently received the 2012 Community Satisfaction Survey relating to the performance of its range of services and general community feedback. We are pleased that in 2012 Council recorded an overall performance response significantly higher than the state wide average and higher when compared to the Inner Melbourne Metropolitan councils.

Mayor and CEO Statement

Customer Service, Advocacy and Council Direction all scored higher than the State Average with Customer Service scoring significantly higher. Councilâ&#x20AC;&#x2122;s community consultation processes were also considered by the community to be sound with scores again higher than the State average. It is pleasing that our reporting and advocacy processes together with our City Plan vision and objectives have been well received by the Banyule community and the delivery of our services is still considered to be up there with the best in the State. Banyuleâ&#x20AC;&#x2122;s Overall Performance was based on contact by both the community and customers using Banyule services and has been noted as significantly higher when compared to the local councils across the State. We are clearly listening to our community with 75% of respondents confirming Council is heading in the right direction. The community were also asked to identify areas of general concern and the responses to these issues are not surprising. The most prevalent issues relate to parking and traffic, planning and neighbourhood character, improvements to local streets and footpaths. In terms of specific business units measured based on performance that exceeded State and Inner Metropolitan performance levels, Banyule recorded high scores in almost all areas. Notable performances are Enforcement of Local Laws, Waste Management, Town Planning Policy, Planning and Building Permits and Environmental Sustainability. Whilst not all service units are specifically measured, the collective Customer Service Score represents how all units deal with the community. On this note the collective response indicates we are doing very well. Whilst Banyule continues to score well in the Community Satisfaction results we will not rest on this rather we will continue to work with the community establishing new ways for improved service delivery. The new financial year will continue to challenge us however Council will work hard to deliver quality services and advocate on behalf of its community.

Simon McMillan Chief Executive Officer

Cr Tom Melican Mayor

City Plan

BANYULE’S COUNCIL PLAN – A PARTNERSHIP BETWEEN COUNCIL AND COMMUNITY Council’s role is to locally govern for all residents, visitors and ratepayers, and provide a range of programs and services that meet the needs of our community. Our City Plan provides a roadmap for us to follow in this important role. Underpinned by our vision and principles, the Plan’s objectives give us clear areas of focus for the four-year period and guide us to achieve the best we can for our community. Vision (What we strive for) Banyule, a green, liveable and prosperous city, sustaining a healthy and engaged community. The core principles that help us achieve our Vision are: Principles     

Sustainability for our future Community wellbeing Community participation Fairness in all we do Maintaining our community’s trust

We believe we will best achieve our Vision and adhere to our core principles, by focusing on the following key directions and strategic objectives on behalf of the community: Objectives People: Community Strengthening and Support Support and strengthen the health and wellbeing of the Banyule community. Planet: Environmental Sustainability Conduct Council activities in a sustainable manner, and practice sound stewardship of the natural environment to ensure its diversity, protection and enhancement. Place: Sustainable Amenity and Built Environment Enable Banyule’s buildings, places and spaces to be more sustainable and encourage communities to live, work, shop, and move and play locally. Prosperity: Prosperous and Sustainable Local Economy Support economic and social development opportunities in a sustainable manner for a thriving Banyule economy. Participation: Community Involvement in Community Life Govern effectively by appropriately engaging the community in issues that affect them, and advocating for the broader interest of the community.

City Plan

Each objective is supported by the following: 

Key directions – A range of key strategic directions for achieving each objective. These include our priority areas for the four-year period.



Strategic indicators - These indicators will measure achievements against our objectives over a four-year period. They include a mix of:  Key data gathered by Council and other agencies to assist in evaluating community wellbeing (e.g. percentage of waste diverted from landfill).  Community Satisfaction Indices (CSI) measured by the State Government in its annual survey of Local Governments in Victoria. Together these indicators provide a comprehensive measure of the achievement of the longterm objectives of Council and the community. The indicators chosen represent broad measures of success in areas that are within our control or of significant interest to Council. They help us to assess our efficiency and indicate effectiveness and the quality of the services we provide. They aim to monitor progress against Council’s priority areas within each objective.



Supporting Strategies and Plans - We work towards achieving our City Plan objectives with the implementation of our supporting strategies and plans. The five key strategies informing the City Plan are being progressively reviewed. They will continue to inform the City Plan’s direction at staged revision points:  Banyule People: Health and Wellbeing Strategy – provides the framework to achieve social and health sustainability. The four-year strategy is supported by an annual action plan, and has been developed in partnership with participating agencies and our community.  Banyule Planet: Environmental Sustainability Strategy (in development) – provides the framework for achieving environmental sustainability in Banyule. It provides guidance and direction for supporting action plans that are reported in the annual State of the Environment Report.  Banyule Place Strategy (in development) – provides a framework for land use and development in Banyule, and for provisions in the Banyule Planning Scheme. This overarching strategy will be underpinned by the Municipal Strategic Statement.  Banyule Prosperity: Economic Development and Employment Strategy (in development) – provides the framework to facilitate a thriving and sustainable local economy.  Banyule Participation Strategy (in development) – provides the framework for Council to support community involvement, by appropriately engaging with our community on issues that affect them, encouraging participation and advocating on behalf of our community

Strategic Resource Plan The Strategic Resource Plan, included in this document, details the financial and non-financial resources required for the life of the City Plan, to achieve Council’s strategic objectives.

Banyule’s Profile

Banyule is situated to the north east of Melbourne, leading beyond the inner city suburbs and ranging towards the more rural fringe areas to the north of the metropolitan area. From the early settlement area of Ivanhoe 7km from the CBD in the south, the municipality is partly boarded by Darebin creek to the west, the Yarra River to the south and east, with Banyule extending a further 14kms to the more recently developed St Helena in the north. Banyule encompasses a range of communities and settings, accessed through key road arterials, generally on the community fringe. The Hurstbridge train line, bus services, and a bike lane network are also important assets to community life. The resident population is approximately 120,000 people across 44,000 dwellings. Banyule has a significant number of residents born in Asia and Europe, and an increasing population of people from Africa. This diverse population brings a cultural richness to our community. Residents strongly value the local trees and “green” nature of the area, which encompasses Banyule Flats wetlands, extensive river bushland, and sporting and passive recreation reserves. The municipal area of Banyule covers approximately 63 square kms in total, of which 10 square kms is open space. A key feature of Banyule is the localised strip shops occurring in 12 locations throughout the municipality which, along with natural geographic and local road boundaries, promotes a valued “village” identity for many areas. Banyule also has a number of commercial centres, the largest being the Greensborough Principal Activity Centre and the Heidelberg and Ivanhoe Major Activity Centres. Important institutions in the area include the extensive Heidelberg Medical Precinct (encompassing the Austin Hospital, Mercy Hospital for Women, Olivia Newton-John Cancer and Wellness Centre, Heidelberg Repatriation Hospital,) as well as the Simpson Army Barracks further north in Watsonia. Also within Banyule is a significant industrial estate on the western edge, and further minor area within Bundoora, providing an important component of economic activity. Banyule’s workers are employed in health and community services, wholesale and retail trade, finance, property and business services, manufacturing, and recreational and personal services. A large number of the jobs available in Banyule are filled locally. Banyule is overwhelmingly a residential area. The 21 suburbs include Bundoora, Bellfield, Briar Hill, Eaglemont, Eltham North (sub area), Greensborough, Heidelberg, Heidelberg Heights, Heidelberg West, Ivanhoe, Ivanhoe East, Lower Plenty, Macleod, Macleod West, Montmorency, Rosanna, St. Helena, Viewbank, Watsonia, Watsonia North, and Yallambie. While separate houses dominate, increasing numbers of semi-detached houses, townhouses and units are being built. Retaining and enhancing the valued neighbourhood character of residential areas is very important to local communities in Banyule. Most homes are privately owned or being purchased. A further 20% of Banyule’s housing is rental (both private and public). With population age ranges of 22% aged 0-17yrs, 23% aged 18-34yrs, 22% aged 35-49yrs, 22% aged 50-69yrs, and 11% aged 70+yrs, these proportions are very similar to the Melbourne metro average. The actual number of people living in Banyule is expected to increase in the next decade, and the municipal average age expected to increase too, with the greatest population segment growth occurring in the over 60 age group. Banyule is supported by a wide range of educational, health, community groups, leisure, and sporting facilities. Banyule Council provides services to support a vision of the municipality that is green, liveable and prosperous, sustaining a healthy and engaged community.

Banyuleâ&#x20AC;&#x2122;s Profile

Our Heritage Banyule has extensive areas of open space that form a network along the Darebin Creek and the Yarra and Plenty River Valleys. These areas provide a wealth of recreational, environmental and tourism opportunities for the region. Within this area there are several sites of botanical, zoological, habitat and heritage significance. The heritage sites include Aboriginal archaeological sites and scar trees, and points of interest associated with the Heidelberg School of Artists. Council recognises the habitation of this land by the Traditional Owners, the Wurundjeri willam. Melbourneâ&#x20AC;&#x2122;s north-east was the homeland of the Wurundjeri willam people who belonged to the Woiworung language group and greater Kulin confederacy. The confederacy was made up of allied clans from south-central Victoria. Today, the Wurundjeri Tribe Land Compensation and Cultural Heritage Council, recognised as the Aboriginal custodians of Banyule and Kulin Nations, take care of this powerful cultural heritage. Council is committed to protecting Aboriginal heritage sites. Over fifty Aboriginal heritage sites have been identified in Banyule. Most are beside major waterways like Darebin Creek and the Yarra and Plenty Rivers. In 1997 Banyule City Council made a joint Statement of Commitment to Indigenous Australians with the Shire of Nillumbik, and the Cities of Manningham and Whitehorse. The Commitment recognises the habitation of this land by local Indigenous people, the historical significance of sacred sites, traditional names and contributions made by key Indigenous members to this region, and the value of the diversity and strength of Indigenous cultures to the heritage of all Australians. Council supports the rights of Indigenous people as outlined in the United Nations Declaration on the Rights of Indigenous Peoples, and the principles of equity and access for all members of the Indigenous community to culturally appropriate services and programs. Council commits to advocate on behalf of Indigenous members of our community to ensure the principles and commitments within the Statement are upheld. The City also has a significant European cultural heritage associated with painters of the Australian Impressionists (previously referred to as the Heidelberg School) such as Arthur Streeton, Tom Roberts, Charles Condor, Frederick McCubbin, Walter Withers, Jane Sutherland, Clara Southern and Jane Price, and architects and urban landscapers including Walter Burley Griffin, Ellis Stones and Edna Walling. Banyule has close links with the birth of the Australian Art Movement and influential artists such as Napier Waller, Albert Tucker, Sidney Nolan, Joy Hester and Norman MacGeorge, who bequeathed his estate in Fairy Hills to the University of Melbourne to encourage development of the arts. Sidney Nolanâ&#x20AC;&#x2122;s first art exhibition was held in Burgundy Street, Heidelberg.

Our Council Banyule is divided into seven wards with one councillor representing each ward. Local government elections are held every four years by attendance voting. The last council election was held on 29 November 2008. The next Council Election will be held on 27 October 2012.

Council’s Role The role of the Council is to provide leadership for the good governance of Banyule. The Council serves the community including ratepayers, residents, businesses, workers and community groups. Council is the level of government closest to the community and takes an active role in advocating for the needs and interests of residents to other levels of government. The principal duties of the Council are to:  review and confirm the strategic direction of the Council which is set out in the City Plan and the Annual Business Plan  approve the Council budget and resource allocation plan  consider and approve a range of strategies and policies prepared by Council officers  fulfil our responsibilities in relation to providing quality services, occupational health and safety and protection of the environment. 11

Our Council Councillors

Cr Wayne Phillips, Beale Ward Elected 2005 Retires 2012 Phone: 0408 999 189 Email: wayne.phillips@banyule.vic.gov.au Mayor 2005/06, 2006/07, 2007/08, 2009/10 Deputy Mayor 2010/11,2011/12

Mayor Cr Tom Melican, Ibbott Ward Elected 2003 Retires 2012 Phone: 9459 8026 Email: tom.melican@banyule.vic.gov.au Mayor 2008/09, 2011/12 Deputy Mayor 2006/07, 2007/08

Cr Craig Langdon, Olympia Ward Elected 2011 Retires 2012 Phone: 0401 097 032 Email: craig.langdon@banyule.vic.gov.au

Cr Steven Briffa, Hawdon Ward Elected 2008 Retires 2012 Phone: 9435 1935 Email: steven.briffa@banyule.vic.gov.au

Cr Peter McKenna, Bakewell Ward Elected 2005 Retires 2012 Phone: 9434 2461 Email: peter.mckenna@banyule.vic.gov.au Deputy Mayor 2008/09 Mayor 2010/11

Cr Jenny Mulholland, Griffin Ward Elected 2000 Retires 2012 Phone: 9458 1391 Email: jenny.mulholland@banyule.vic.gov.au Mayor 2003/04 March 04/Dec 04 Deputy Mayor 2004/05, 2009/10

Cr Jessica Paul, Grimshaw Ward Elected 2008 Retires 2012 Phone: 0418 513 559 Email: jessica.paul@banyule.vic.gov.au

Corporate Governance Delegation of Powers Numerous duties, functions and powers are conferred on Council through legislation such as the Local Government Act 1989, the Planning and Environment Act 1987, the Building Act 1993 and others. Obviously the Councillors cannot deal with the daily minutiae of Council business and the Council has delegated to the Chief Executive Officer the authority and powers necessary to comply with the legislation and implement the strategies approved by the Council. The Chief Executive Officer has further delegated powers to Council officers who carry out the functions of the Council on a day-today basis. The powers, duties and functions delegated to officers must be exercised in ways consistent with previously established guidance or direction from the Council. There are certain powers that the Council cannot delegate and these include:  the awarding of a contract in excess of $500,000  the purchase or disposal of land  making a local law  adopting the Council Plan and Council Budget  declaring a rate. The Instrument of Delegation must be reviewed by the newly-elected Council within the first 12 months of office. Councillors’ Legal Obligations The Local Government Act 1989 sets out, in general terms, the conduct expected of Councillors and members of special committees. In performing the role of a Councillor, Councillors must act honestly and must exercise reasonable care and diligence in carrying out their duties. Councillors must not make improper use of their position or information gained in their role as a Councillor to:  gain, or attempt to gain, directly or indirectly, an advantage for themselves or for any other person  cause, or attempt to cause, detriment to the Council. Disclosure of Interests The Local Government Act 1989 places stringent obligations on Councillors to disclose any conflict of interest they may have in a matter which is to be, or is likely to be, considered or discussed at a meeting of the Council or a special committee. Conflict of interest provisions apply only if the nature of the interest of the Councillor may conflict with the performance of their public duties. Where a conflict of interest exists the Councillor is not allowed to vote on the matter before Council and must leave the Council chamber before the vote is taken. Disclosure of conflict of interest provisions requires a Councillor to disclose the type of interest, whether it is direct or indirect, and the nature the conflict of interest. A direct interest generally exists if the Councillor is directly affected or their circumstances directly altered. Direct interests specifically include circumstances where the Councillor is reasonably likely to be directly affected financially, or where their residential amenity is likely to be directly affected. An indirect interest generally arises as a result of a connection with another person, organisation or circumstance. Indirect interests are described as:  a close association in the matter: this is where a ‘family member’ who regularly resides with the Councillor has a direct or indirect interest, or a ‘relative’ has a direct interest, or a member of the person’s household has a direct interest in the matter  an indirect financial interest in the matter 13

Corporate Governance    

a conflicting duty. Note there are circumstances where a person does not have an indirect interest because of a conflicting duty receipt of an applicable gift someone who becomes an interested party in the matter by initiating civil proceedings or becoming a party to civil proceedings in relation to the matter residential amenity is likely to be altered.

To ensure impartiality in decision-making, Councillors, senior and nominated officers are required to make a six-monthly return of any prescribed interest they hold. Council staff with delegated powers must also disclose any conflict of interest they may have in a matter where they are executing their delegated authority. Councillor Code of Conduct The Local Government Act 1989 (the Act) requires Council to review the Councillor Code of Conduct within 12 months of a general election. Council last reviewed the code on 9 May 2011. The Councillor Code of Conduct includes:  conduct principles  procedures for resolving disputes between Councillors  procedures for the disclosure of conflict of interests  a statement of caretaker procedures for the election period  procedures to ensure Council resources are not inappropriately used during an election period. The following general principles are included: (a) Avoiding conflicts between his or her public duties as a Councillor and his or her personal interests and obligations. (b) Acting honestly and avoiding statements (whether oral or in writing) or actions that will or are likely to mislead or deceive a person. (c) Treating all persons with respect and having due regard to the opinions, beliefs, rights and responsibilities of other Councillors, council officers and other persons. (d) Exercising reasonable care and diligence and submitting himself or herself to the lawful scrutiny that is appropriate to his or her office. (e) Endeavouring to ensure that public resources are used prudently and solely in the public interest. (f) Acting lawfully and in accordance with the trust placed in him or her as an elected representative. (g) Supporting and promoting these principles by leadership and example and acting in a way that secures and preserves public confidence in the office of Councillor. In addition, the Act also specifies that the Councillor Code of Conduct needs to address the types of conduct that are expressly prohibited including:  A Councillor must not misuse his or her position to gain an advantage for himself/herself or for another person, or to cause detriment to the Council or another person.  A Councillor must not improperly direct or influence a member of Council staff in the exercise of any power or in the performance of any duty or function by that staff member.  A Councillor must not release information that he or she knows is confidential. Breaches of the Act may be subject to severe penalties. Staff Code of Conduct The Local Government Act 1989 requires Council to develop and implement a code of conduct for staff to guide employees in carrying out their duties with honesty and integrity. Banyule’s Staff Professional Standards was adopted in February 2010 and addresses the following conduct principles that staff are required to adhere to: (a) act impartially 14

Corporate Governance

(b) act with integrity, including avoiding conflicts of interest (c) accept accountability for results (d) provide responsive service. Banyuleâ&#x20AC;&#x2122;s Code of Conduct is currently under review to ensure the requirements above are addressed. Assembly of Councillors The Local Government Act 1989 requires councils to keep a record of any planned or scheduled meetings where at least half the Councillors (4) and one member of Council staff are present to consider matters that are intended or likely to be the subject of a decision of the Council, or subject to the exercise of a function, duty or power of a Council that has been delegated to a person or committee. An assembly of Councillors does not include a meeting of the Council, a special committee of the Council, or any club, association, peak body, political party or other organisation. At an assembly of Councillors, if a Councillor has a conflict of interest they must disclose it, complete a prescribed form and leave the assembly before the matter is considered. Council keeps a written record of the names of Councillors and members of Council staff attending the meeting, the matters considered at the meeting, and any conflict of interest disclosures made by a Councillor attending. The public can inspect an Assembly of Councillors record for 12 months after the date of the Assembly. For the 2011/2012 period, 89 Assemblies of Councillors were recorded. Councillor Remuneration The Local Government Act 1989 provides for Councillors to be paid an allowance for their services. These allowances are determined by the State Government and were effective from 1 December 2008. Effective from the 1 December 2011 the allowances were adjusted in line with Section 73B of the Local Government Act 1989 which provides for an annual adjustment factor to be applied to the Mayoral and Councillor allowances. The Mayoral Allowance is $67,634 and Councillors Allowance $21,859. Councillors also receive other forms of support including a computer and fax machine, communication assistance such as landline and mobile phone, and personalised stationery to enable them to fulfil their role in accordance with the Local Government Act. In addition to the above, the Mayor receives a fully serviced vehicle to enable mayoral obligations to be fulfilled.

Corporate Governance

COUNCIL MEETINGS Council decisions are made by Councillors at Council meetings. Meetings are open to the public unless the Council resolves to close the meeting to consider confidential matters. Council meetings provide residents with an opportunity to witness the discussion and decisions of Council, to ask questions of Council and to raise issues for Council to consider in its decision-making process. Council meetings are held fortnightly on a Monday evening. Prior to the commencement of the formal meeting there is a period allowed for a public forum during which time questions without notice may be raised with the Council. Public Participation in Council Meetings Anyone can address Council on a matter that is on the Council Agenda by submitting a written request to speak on the day of the meeting. Speakers are allowed three minutes to present to Council. A public forum is held prior to each meeting where members of the gallery may ask a question of the Council. Where questions cannot be answered on the evening, they will be â&#x20AC;&#x2DC;taken on noticeâ&#x20AC;&#x2122; and the relevant staff member will make contact with the enquirer. Members of the community can provide input through the conventional process of petitions. In this way they can raise the attention of the whole Council to matters that are of concern to a number of residents. Councillor Briefing Sessions In addition to regular Council meetings, briefing sessions are held to inform Councillors about important issues. These sessions provide Councillors and Council officers with an opportunity to discuss issues in detail, seek further information and allow questions and concerns to be addressed in an open and frank environment. Briefing meetings are not a decision-making forum; they allow Councillors to explore options and gain a more detailed understanding of the matter/s in question. Decisions of Council can only be made during Council meetings. COUNCIL COMMITTEES Council has no special committee as permitted under Section 86 of the Act. Council has established a number of advisory committees and Councillors are appointed as representatives on those committees. In addition to the Council-established advisory committees, there are a number of other committees that include nominated Councillor Representatives.

Corporate Governance COUNCIL COMMITTEES Council Committees Arts and Cultural Advisory Group Formal mechanism for Council to consult with key stakeholders, seek specialist advice and enable community participation in arts and cultural planning and development. Asset Management Steering Committee To implement Council’s Asset Management Strategy and ensure a corporate approach across Council. Audit Committee – Councillors Improves the quality of financial reporting and ensures Council makes informed decisions regarding accounting policies, practices and disclosures. Banyule Bicycle Advisory Committee Banyule Community Plan Implementation This committee will monitor the implementation of the Community Plan. It is made up of representatives from each of the project groups undertaking the Community Plan actions and Council to ensure that communication is maintained between the Community Plan and Council’s other planning processes. Banyule Environment Advisory Committee (BEAC) Assists with the implementation and monitoring of the Banyule Environmental Sustainability Policy and Strategy, the production of the annual State of the Environment Report and provides advice and comment on environmental matters. Banyule Road Safety Committee Disability Residents Group Early Years Advisory Committee To advise and inform Council’s planning response to early childhood issues and developments from a parent/carer perspective. Greensborough Principal Activity Centre Community Consultative Committee Provides input to Council on the urban design and development proposals for Greensborough Principal Activity Centre. Greensborough Project Steering Committee (GPSG)

1 July 2011 to 11 December 2011 Cr Jenny Mulholland Cr Tom Melican (substitute)

12 December 2011 to 30 June 2012 Cr Jenny Mulholland Cr Tom Melican (substitute)

Cr Wayne Phillips Cr Steven Briffa Cr Tom Melican (substitute)

Cr Jenny Mulholland Cr Steven Briffa Cr Tom Melican (substitute)

Cr Tom Melican

Cr Tom Melican Cr Steven Briffa (substitute)

Cr Tom Melican Cr Jess Paul

Cr Tom Melican Cr Jess Paul Cr Steven Briffa (substitute) Cr Craig Langdon (substitute)

Cr Tom Melican Cr Peter McKenna (substitute)

Cr Tom Melican Cr Craig Langdon (substitute)

Cr Peter McKenna Cr Tom Melican Cr Jenny Mulholland Cr Jess Paul (substitute) Cr Jess Paul Cr Peter McKenna (substitute)

Cr Tom Melican Cr Craig Langdon Cr Jenny Mulholland Cr Jess Paul (substitute) Cr Jess Paul Cr Peter McKenna (substitute)

Cr Peter McKenna Cr Steven Briffa Cr Wayne Phillips Cr Jenny Mulholland (substitute) Cr Peter McKenna Cr Steven Briffa Cr Wayne Phillips (substitute)

Cr Peter McKenna Cr Wayne Phillips Cr Steven Briffa Cr Jenny Mulholland (substitute) Cr Peter McKenna Cr Steven Briffa Cr Wayne Phillips (substitute)

Corporate Governance

Council Committees continued

1 July 2011 to 11 December 2011 Cr Wayne Phillips

Neighbourhood Character Focus Group Ivanhoe Community Consultative Committee To identify and direct the type, level and quantity of land use and development changes in the Ivanhoe precinct for inclusion in the Ivanhoe Structure Plan. Strategic Property Group To review the current and future property requirements of the Council to ensure that adequate provision is made to meet future community needs. (Formerly Property/Strategic Direction Advisory Committee).

Cr Jenny Mulholland Cr Wayne Phillips (substitute) Cr Wayne Phillips Cr Peter McKenna Cr Jenny Mulholland Cr Steven Briffa

12 December 2011 to 30 June 2012 Cr Wayne Phillips Cr Steven Briffa (substitute) Cr Jenny Mulholland Cr Craig Langdon Cr Wayne Phillips (substitute) Cr Wayne Phillips Cr Peter McKenna Cr Jenny Mulholland Cr Steven Briffa

Corporate Governance

EXTERNAL COMMITTEES In addition to the Council-established advisory committees there are a number of other committees that include nominated Councillor Representatives. External Committees Darebin Creek Management Committee

Department of Sustainability & Environment – Victorian Local Sustainability Advisory Committee To act as a forum for the Victorian Government to engage with local government, local communities and regional environmental and climate change stakeholders regarding policy, strategy and program design. Melbourne’s Valley of the Arts Regional Tourism Board (MVotA) To promote the middle Yarra parklands area to increase recognition of its arts, cultural and environmental heritage amongst local residents and visitors to Melbourne. Metropolitan Transport Forum To promote effective, efficient and equitable transport in metropolitan Melbourne by providing a forum for debate, research and policy development, and by disseminating information to improve transport choices. Metropolitan Waste Management Group Provides a framework for strategic regional waste management planning and a waste management coordination role for waste issues in regions.

Municipal Association of Victoria (MAV) and Australian Local Government Association (ALGA) Provides leadership by supporting local governments to achieve high levels of respect and recognition through improved performance. Municipal Association of Victoria (MAV) – Environment Committee Municipal Association of Victoria (MAV) - Future Growth Reference Group

1 July 2011 to 11 December 2011 Cr Peter McKenna (ex officio until 6 March 2011) Cr Craig Langdon (from 7 March 2011) Cr Wayne Phillips (substitute) Cr Tom Melican Cr Wayne Phillips (substitute)

12 December 2011 to 30 June 2012 Cr Craig Langdon Cr Jenny Mulholland (substitute)

Cr Craig Langdon Cr Jenny Mulholland (substitute)

Cr Tom Melican Cr Steven Briffa (substitute)

Cr Peter McKenna (ex officio until 6 March 2011) Cr Craig Langdon (from 7 March 2011) Cr Tom Melican Cr Wayne Phillips (substitute) Cr Jenny Mulholland Cr Tom Melican (substitute)

Cr Craig Langdon Cr Tom Melican Cr Wayne Phillips (substitute)

Cr Jenny Mulholland Cr Tom Melican Cr Wayne Phillips

Cr Jenny Mulholland Cr Tom Melican Cr Wayne Phillips Cr Peter McKenna (substitute) Cr Jenny Mulholland Cr Wayne Phillips (substitute) Cr Peter McKenna (substitute) Cr Wayne Phillips Cr Steven Briffa (substitute)

Municipal Association of Victoria (MAV) – Future of Local Government (FOLG) Strategic Change Group

Municipal Association of Victoria (MAV) Metropolitan Housing Growth Project – Councillor Reference Group

Cr Wayne Phillips

Cr Tom Melican Cr Wayne Phillips (substitute)

Cr Jenny Mulholland Cr Tom Melican (substitute)

Corporate Governance External Committees cont’d Municipal Association of Victoria (MAV) – Planning Advisory Group (former Melbourne 2030 Councillor Reference Group) Established by the MAV as a forum to identify, discuss and progress actions to address issues for local government associated with the implementation of the Melbourne 2030 (M2030) policy framework. Municipal Association of Victoria (MAV) - Transition Community Working Group Municipal Association of Victoria (MAV) – Transport and Infrastructure Advisory Group Napier Waller Property Committee of Management To manage the restoration of the house, garden and art collection of the former residence of the artist Napier Waller. Northern Alliance for Greenhouse Action (NAGA) Investigates, develops and coordinates energy saving and greenhouse gas emissions abatement projects within the NAGA region. Northern Melbourne Regional Development Australia Committee Northland Structure Plan Steering Committee Victorian Local Governance Association The VLGA is a principle source of democratic and cooperative leadership to municipalities and associated community groups. It assists local governments to maintain peace, order and good government in Victoria. West Heidelberg Neighbourhood Renewal Steering Committee (resolved SM 7/12/2009) This committee is made up of 11 organisation representatives and 11 residents. The role of the committee is to develop a Community Action Plan in response to the needs of residents and oversee the implementation and evaluation of the activities in the plan. Yarra Plenty Regional Library Audit Committee Yarra Plenty Regional Library Service Board The Board is made up of two representatives of the three municipalities (Banyule, Nillumbik and Whittlesea) that constitute the service. Its role is to set policy and direction for the regional library service.

1 July 2011 to 11 December 2011 Cr Tom Melican

12 December 2011 to 30 June 2012 Cr Tom Melican Cr Jenny Mulholland (substitute)

Cr Tom Melican Cr Jenny Mulholland (substitute) Cr Tom Melican Cr Steven Briffa Cr Jenny Mulholland Cr Wayne Phillips (substitute)

Cr Tom Melican Cr Jenny Mulholland (substitute) Cr Tom Melican Cr Steven Briffa Cr Jenny Mulholland Cr Craig Langdon (substitute)

Cr Tom Melican Cr Jenny Mulholland (substitute)

Cr Tom Melican Cr Craig Langdon (substitute)

Cr Tom Melican

Cr Peter McKenna Cr Jess Paul (substitute)

Cr Craig Langdon Cr Steven Briffa Cr Jess Paul (substitute)

Cr Peter McKenna (ex officio until 6 March 2011) Cr Craig Langdon (from 7 March 2011) Cr Wayne Phillips (substitute)

Cr Craig Langdon Cr Wayne Phillips (substitute)

Cr Jenny Mulholland Cr Peter McKenna (substitute) Cr Peter McKenna Cr Jenny Mulholland Cr Jess Paul (substitute)

Cr Jenny Mulholland Cr Jess Paul (substitute) Cr Jenny Mulholland Cr Jess Paul Cr Steven Briffa (substitute) Cr Tom Melican (substitute)

Corporate Governance COUNCILLOR ATTENDANCE OF COUNCIL COMMITTEE MEETINGS

Cr P McKenna

Cr T Melican

Cr J Mulholland

Cr J Paul

Meetings of Council Council Ordinary Meeting Leave of Absence Special Meetings Special Meeting Leave of Absence

19 3

21 2

15 6

18 4

2 4

Cr W Phillips

Cr C Langdon

Meetings held

Cr S Briffa

Council and Committee Meetings 1 July 2011 to 30 June 2012

Council Committees Arts and Cultural Advisory Group

Asset Management Steering Committee Audit Advisory Committee Banyule Bicycle Advisory Committee Banyule Community Plan Implementation Committee Banyule Environment Advisory Committee (BEAC) Banyule Road Safety Committee Disability Residents Group Early Years Advisory Committee Greensborough Principal Activity Centre Community Consultative Committee Greensborough Project Steering Committee (GPSG) Ivanhoe Community Consultative Committee Neighbourhood Character Focus Group Strategic Property Group

3 (no Minutes recorded for 1 meeting) 0 4 4

0 2

0 11

Corporate Governance WARD FUNDING Ward funds are discretionary Council funds that may be recommended by a Ward Councillor for a community initiative and must be adopted by Council. Councillors are allocated $20,000 per annum ward fund distribution, with the ability to carry forward 50% of unexpended funds to the next financial year. Ward funding aims to:  assist a recognised community group whose services, programs or activities are used by or are of benefit to Banyule residents  assist an individual to participate in a sporting, recreational or cultural activity  support an event or activity which will be of benefit to or interest to Banyule residents  support a proposal to enhance Banyule’s physical environment or the development of community wellbeing as identified in the Council Plan. Bakewell Ward Cr Peter McKenna donated a total of $12,000.00 in ward funds: Ejaaz Alavi School Sport Aust travel expenses 1st Greensborough Scout Group Consents / Permits for building alterations St Marys Little Athletics Club Portable Shade Shelter MC Costs for Banyule’s Sport Achievement Awards Banyule City Council Diamond Valley Foodshare Refurbishment, maintenance, painting Contribution to travel funds for world junior championships Chris Brennan Diamond Valley Vietnam Veterans Bike ride sponsorship Beale Ward Cr Wayne Phillips donated a total of $22,000.00 in ward funds: Transition Banyule Tree planting workshops St Helena Secondary College Great Victoria Bike Ride Sponsorship Ejaaz Alavi School Sport Aust travel expenses Sherbourne Primary School Applied technology tournament of minds team Drew McKenzie All Stars Australian Team USA Tour Montmorency / Eltham RSL Inc cont. Viewing platform and Cenotaph Banyule City Council Sponsors marquee for Twilight Sounds festival Greensborough Uniting Primary Club Replacement of safety equipment & gym matting Banyule City Council Sports Field Lighting at Anthony Beale Reserve Griffin Ward Cr Jenny Mulholland donated a total of $13,225.00 in ward funds: Transition Banyule Tree planting workshops Ejaaz Alavi School Sport Aust travel expenses Pavement works on Yarra Street (St Johns Catholic Banyule City Council Primary) Banyule City Council Twilight Sounds event contribution Heidelberg Football Club Building Permit Application Fee Heidelberg RSL Sub Branch Inc ANZAC Day Breakfast Yarra Plenty Regional Library Service Copies of "Lady who swallowed a mozzie" 22

200.00 2,500.00 300.00 5,000.00 3,000.00 500.00 500.00

1,000.00 1,000.00 200.00 600.00 200.00 5,000.00 3,000.00 1,000.00 10,000.00

945.00 200.00 3,000.00 3,000.00 604.00 1,000.00 4,476.00

Corporate Governance

Grimshaw Ward Cr Jess Paul donated a total of $4,500.00 in ward funds: Ejaaz Alavi School Sport Aust travel expenses Watsonia Library Redevelopment of front garden Watsonia Neighbourhood House Laptop Computer Montmorency / Eltham RSL Inc Contribution towards 10 bronze plaques Hawdon Ward Cr Steven Briffa donated a total of $29,834.90 in ward funds. Ejaaz Alavi School Sport Aust travel expenses Lower Plenty Football Club Upgrade Kitchen Facilities Montmorency Traders Association Music in the Park program Montmorency - Eltham RSL Sub Branch Excavation and laying of concrete slabs Lower Plenty Cricket Club Landscaping & beautification Montmorency Bowling Club Maint & Upgrade Light Fittings in Bowling Shelters Montmorency / Eltham RSL Inc cont. Viewing platform and Cenotaph All Saints Church Greensborough Fridge / Freezer Lower Plenty Traders Association Replacement of street lights Olympia Ward Cr Craig Langdon donated a total of $18,750.00 in ward funds: Transition Banyule Tree planting workshops Heidelberg Christian Centre Childrenâ&#x20AC;&#x2122;s Community Event Olympic Adult Education Cupboard for the tea room North Heidelberg Cricket Club In2Cricket Program Heidelberg Stars Soccer Club Bus Purchase Contribution Livingstone Community Centre Young Mothers Group Luke Zanin School Trip Dave Fisher Clubrooms at Warringal Park 2 new roller doors Olympic Village Primary School Sporting and Art Equipment St Bernadettes, Olympic Village, Ivanhoe Primary Child safety vests and brochures Schools Olympic Adult Education Gifts for National Volunteers Week

200.00 1,000.00 800.00 2,500.00

200.00 1,000.00 1,500.00 5,234.90 2,200.00 3,200.00 10,500.00 2,000.00 4,000.00

500.00 500.00 3,800.00 500.00 2,000.00 2,000.00 500.00 1,700.00 4,000.00 3,000.00 250.00

Corporate Governance

CONSULTATION Council uses a variety of methods for involving our community in the decisions we make. These include public forums such as workshops, advisory committees, surveys, focus groups, community comment mechanisms, email feedback via our website and individual feedback such as formal submissions. Networks, Advisory Committees and Working Groups Networks, reference groups and advisory committees provide independent comment for Council and officers on various policies and strategies that are developed and later implemented. They cover the areas of leisure and sport, culture, disabilities and environment and consist of a broad database of people within the community. In addition to the standing networks and committees mentioned above, short-term working groups of community members are established for specific projects. These can range from organising a festival to giving community perspective on major works. Policies, Strategies and Plans In addition to the community input provided for the above, Council always seeks public input when developing policies and strategies. In 2009/2010 16 policies/plans were exhibited for public comment and advertised through the local media and/or Councilâ&#x20AC;&#x2122;s newsletter. Statutory Procedures Under the Local Government Act 1989 Council is required to call for formal submissions on matters such as proposed discontinuance of roads, special charge schemes and adoption of local laws. Individual Feedback Community members are encouraged to keep Council in touch with their views at any time. Community feedback can be made via a postcard, letter, telephone or email. Surveys Council conducts surveys during the development of policies, service reviews or for monitoring community satisfaction with Councilâ&#x20AC;&#x2122;s services. The size of the survey can range from as few as three property owners/residents to 1000. One-on-one personal interviews are often conducted with traders in the development of centre strategies. Focus groups are another research method used from time to time to strengthen existing or proposed services.

Corporate Governance

Community Consultation The following projects and policies were the subject of community consultation throughout the year:               

Household Survey 2011 Proposed Sale of Land – 182 Hawdon Street, Heidelberg Notice of Intention to Lease – Bellfield Community Centre Inc, 96 Oriel Road, Bellfield. Notice of Intention to Lease – Leisure Management Services Pty Ltd, Ivanhoe Golf Course, 1 Vasey St, Ivanhoe Notice of Intention to Create an Easement – 2B Main Road, Lower Plenty Notice of Intention to Lease – Watermarc Café, 1 Flintoff St, Greensborough Road Discontinuance – Government Gazette, 46 Station Rd, Rosanna Proposed Road Discontinuance – Cressy Street, Montmorency Proposed Road Discontinuance – 106-110 Hawdon St, Heidelberg Proposed Road Discontinuance – 3 Wimport St, Heidelberg Have a say in your community -Are you an older adult who wants to have your say in your community? Central Park Greensborough – Master Plan Public Meeting Community Workshops and Information Sessions – Draft Ivanhoe Structure Plan City Plan 2009-2013 Preparation of 2012/2013 Budget and City Plan 2009-13 (Year 4)

Corporate Governance AUDIT COMMITTEE 1.

Role and Objectives The Audit Committee is an Advisory Committee of the Council with an independent role of assessing internal controls and financial stewardship of the Council. It works with Council and its auditors to ensure the community’s needs are protected at all times. The general role of the Audit Committee is to assist Council:  in compliance with laws and regulations  in the discharge of its responsibility for financial reports  to maintain a system of internal control  to maintain the ethical values of the municipality  to introduce enhancements to assist the efficiency, effectiveness and sound governance of Council services. The objectives of the Audit Committee include the following:  to improve the quality and objectivity of internal and external financial reporting  to ensure the Council complies with legislation and regulations and makes informed decisions regarding accounting policies, practices and disclosures  to review the scope and outcome of internal and external audits  to ensure effective management and strong internal controls protect the assets of the municipality  to ensure sound and timely communication occurs between internal and external auditors and with management  to monitor adequacy of risk management system controls relating to commercial risks  to generally add value to the Council’s operations.

Membership The Audit Committee consists of two Councillors and two Independent Representatives as follows: Current Appointment Terms 12/12/11 to 27/10/12 12/12/11 to 27/10/12 12/12/11 to 27/10/12

Cr Jenny Mulholland Cr Steven Briffa Cr Tom Melican (Substitute) Hugh Parkes (Chairperson & Independent Representative) BA (Hons), MBA, FCA, CISA A. J. Purcell (Independent Representative) B. Business (Acc) B. Ec; Graduate Cert Fraud Investigation; MBA; FCPA

01/01/10 to 31/12/12 15/8/11 to 14/8/12

Corporate Governance 3.

Meetings During the last 12 months, the Audit Committee has met on four occasions to:  monitor timely progress of management’s actioning of audit report findings.  review the 2010-2011 Annual Report and recommend: o Council’s Certification of the Financial Statements o Council’s Certification of Standard Statements o Council’s Certification of the Performance Statement, after having considered advice that no material issues were highlighted during the audit and no high-risk internal control issues were found o The Best Value Victorian Annual Report o Victorian Local Government Indicators o General review of Council’s Annual Report.  consider new Internal Audit Reports for 2011-2012 and consequent actions agreed between the Internal Auditor and City Management covering: o Continuous audit of financial controls – payroll and accounts payable o Review of Workplace Planning Management o Review of General Ledger – CAATS o Councillor entitlements o Professional indemnity/insurances  consider the Victorian Auditor-General’s 30 June 2011 financial audit client strategy and approach to the annual audit and agreed deliverables  review and update the Internal Audit Plan 2011-2012 to 2013-2014 as presented by management and Oakton to address the different levels of risk of activities of Council and to balance the Audit Program across Service Units  consider and approve the Audit Plan for 2011-2012 and the detailed scope for individual audits, including: o Councillor entitlements o New CAATS – General Ledger o Run previously developed CAATS o Professional indemnity practices and controls/insurance/risk management o Asset and infrastructure management o Assessment of CRM for potential CAATS development o Assessment of planning systems for potential CAATS development 

  

Consider the final audit report and action plan resulting from a local government inspectorate compliance audit during December 2011. Review an update of the Audit Committee Charter. Review interstate and overseas conference attendance by Councillors and Council Officers in accordance with Council Resolution No FPOC.99 Receive updates on the Greensborough Regional Aquatic and Leisure Centre (WaterMarc), including government funding, Planning Scheme Amendments, concept designs, contract development and construction scheduling and construction progress

Corporate Governance COMMUNITY GRANTS Banyule Council offers a range of opportunities for groups and individuals within the municipality to apply for a grant. The following are initiatives that are provided by Council to assist groups or individuals: Community Development Grants Program The aim of the Community Development Grants Program is to assist community groups, organisations and individuals to address clearly identified community needs and to encourage and strengthen participation in local communities. It enables not-for-profit organisations to deliver services, programs, special events and other activities to the community that would not otherwise be provided. It also allows the community to participate in a broader range of activities than those directly provided by Council. 51 applications totalling $137,769 were funded, 19 were equipment based and 32 were activity based. Banyule Environmental Sustainability Grants The Environmental Sustainability Grants Program encourages community involvement in the achievement of environmental sustainability, particularly through:  maintenance and enhancement of the natural environment  the conservation of resources including materials  water and energy  a reduction in waste and pollution  and the encouragement of environmental stewardship.. These grants are provided as an incentive to new or established groups to develop initiatives that achieve these aims.. The grant pool for 2011/12 was a total amount of $15,000 with the average amount per grant being $1,153 and a maximum allocation of $3,171. Thirteen successful applications totalling $15,000 were distributed through the Environmental Grants Program in 2011/12. Council received 26 applications for grants totalling $44,230. Facility and Resources Subsidy Grants Council has a diverse range of community centres, halls and venues, a mobile stage and two community buses available for hire. It recognises that rental fees can sometimes limit access to these facilities and resources, so Facility and Resource Subsidy Grants are provided to allow equitable access to all Council community resources. Users can apply for a grant to subsidise the scheduled fee or part of it. A total of $29,242 was subsidised through the Facility and Resources Subsidy Grants program in 2011/12 with 49 applications received.

Corporate Governance

PUBLIC INFORMATION Freedom of Information The Freedom of Information Act (FOI) 1982 gives the community a legal right to access certain Council documents. The Banyule Council is subject to the FOI Act and responds to requests directly related to its operations. There were 11 FOI requests processed in 2011/2012. The FOI Act has four basic principles:  the public has a legal right of access to information  local governments are required to publish information concerning the documents they hold  people may request that inaccurate, incomplete, out-of-date or misleading information in their personal records be amended  people may appeal against a decision not to give access to the information or not to amend a personal record. Accessing FOI Information Requests to access FOI information must be in writing and accompanied by the prescribed fee. Applicants should specify the documents they are seeking to access. Documents that contain personal private information about an individual may be exempt. On receipt of a request, a decision must be made within 45 days. Where a decision is made to refuse or defer access, the applicant will be notified in writing of the reasons for the refusal and the procedures available to appeal the decision. Whistleblowers Protection Act The purpose of the Whistleblowers Protection Act 2001 is to encourage and facilitate the disclosure of improper conduct by Councillors and Council staff. The Act also provides protection to persons making disclosures who may suffer reprisals as a result of their actions. Improper conduct includes conduct involving the substantial mismanagement of public resources, conduct involving substantial risk to public health and safety, or conduct involving substantial risk to the environment that would, if proved, constitute a criminal offence or reasonable grounds for dismissal. Corrupt conduct relates to conduct which adversely affects honest and impartial performance, a breach of public trust, or misuse of information or material acquired in the course of employment/office. Council has developed and adopted guidelines and procedures to manage its compliance with the Whistleblowers Protection Act 2001 that are consistent with the Ombudsman Victoria’s guidelines and with the requirements of the Act. Disclosures of improper conduct or detrimental action by a Council officer, member or employee of the Council in an official capacity may be made to the appointed Public Disclosure Officer. All disclosures are treated confidentially.

Corporate Governance

During 2011/2012 there were:  no disclosures made to Council  no disclosures referred by the Council to the Ombudsman for determination as to whether they are public interest disclosures  no disclosed matters referred to the Council by the Ombudsman  no disclosed matters referred by the Council to the Ombudsman to investigate  no investigations of disclosed matters taken over by the Ombudsman from the Council  no requests made under Section 74 of the Whistleblowers Protection Act 2001 to the Ombudsman to investigate disclosed matters  no matters that Council has declined to investigate  no disclosed matters that were substantiated on investigation and no action required to be taken on completion of an investigation  no recommendation of the Ombudsman under the Whistleblowers Protection Act 2001 to the Council. Information Privacy Act The Victorian Information Privacy Act 2000 requires that Council follow information privacy principles when collecting, managing and using an individual’s personal information. The Act contains ten principles for the collection, use and dissemination of personal information about an individual. It incorporates safeguards for activities such as collection, storage, access, transmission, disclosure, use and disposal of personal information. Council has developed and adopted guidelines and procedures to manage its compliance with the Information Privacy Act 2000, which are consistent with the Privacy Commissioner’s guidelines and with the requirements of the Act. The Information Privacy Policy applies to all Council officers, Councillors and contractors of Council. Training and awareness sessions have been held with Council staff and Councillors. Information Privacy training is incorporated in Council’s induction program. Documents available for Public Inspection The following documents can be inspected at Council’s office upon request during business hours in accordance with Section 11(g) of the Local Government (General) Regulations 2004 and is a summary only of the Regulation’s requirements:  details of Mayor and Councillor allowances fixed under Section 74 of the Act  details of senior officers’ salary ranges  details of overseas or interstate travel  names of Council officers and Councillors who submitted a return of interest during the year  Council Agendas and Minutes  a list of special committees that were established, abolished or ceased to function during the year  a register of delegations kept under Sections 87, 88 and 98 of the Act  submissions received under Section 223 of the Act  agreements to establish regional libraries under Section 196 of the Act  details of all property finance and operating leases involving land, buildings, plant, computer equipment or vehicles  a register of authorised officers appointed under Section 224 of the Act  a list of donations and grants made by Council  a list of organisations of which Council is a member and details of membership fees  a list of contracts greater than $100,000 that Council entered into and which are not contracts under Section 186(5) of the Act.

Corporate Governance

In addition to this, the Local Government Act 1989 Act and other Acts under which local government operates, stipulate the following information is available for public inspection:  Register of Interests (Section 81(10))  Candidate campaign donation returns (Section 62A)  Councillor Reimbursement Policy (Section 75B)  Councillor Code of Conduct (Section 76C)  Assembly of Councillors (Section 80A)  Minutes of Council Meetings (Section 93)  A copy of every Local Law (Section 120)  Accounts and records of Council transactions (Section 140)  Annual Report (Section 131)  Auditor’s Report (Section 133)  Annual Budget (Section 127)  Council Plan and Strategic Resource Plan (Section 125 & 126)  Details of Differential Rates (Section 161)  Best Value – Quality and cost standards (Section 208)  Procurement Policy (Section 186A)  Register of all building permits issued (Building Act 1983, Section 31)  Register of all registered dogs and cats in the Municipal District (Domestic (Feral & Nuisance) Animals Act, Section 18)  A copy of the Municipal Planning Scheme and any approved amendments (Planning & Environment Act 1987, Section 42)  A register of planning permit applications, decisions and determinations (Planning & Environment Act 1983, Section 49)  A register of Section 173 Agreements entered into by the Municipality (Planning and Environment Act 1987, Section 179)  A copy of the Municipal Public Health and Wellbeing Plan (Public Health and Wellbeing Act 2008, Section 26(7))  Details of Food Premise Registrations (Food Act 1984, Section 43)  Annual report on the operation of the Freedom of Information Act 1982 (Section 65AA)  Whistleblowers Protection Act Policy & Procedures (Section 70). LOCAL LAWS As at 30 June 2012, Council had the following Local Laws:  General Local Law No 1 which regulates and controls activities and behaviour on public land  Conduct of Meetings Local Law 2, which regulates the conduct of Council meetings and use of the Common Seal. Codes of Practice The Council has also adopted Codes of Practice to complement and enhance its Local Laws. Council has the following Codes as at 30 June 2012:  Councillors Code of Conduct  Meeting Procedure Code  Building Site Code of Practice.

Corporate Governance Orders of Council Council has the following Orders:  Dogs in Public Places  Alcohol Prohibition in - Watsonia Shopping Centre and surrounds - Lower Plenty Shops - Montmorency Shopping Precinct - Extension of the Olympic Village Shopping Centre located at Southern Road, Heidelberg West to include the park, community centre, and adjoining laneway - Waterdale Road North Shops and surrounds including park, Heidelberg West - Andrew Place & Strikers Bowling precinct, Bundoora - Ivanhoe Shopping Precinct and Council Offices - Silverdale Road Shopping Strip, Eaglemont - Heidelberg Shopping Precinct - Olympic Village Shopping Centre - Boulevard Lights - Greensborough - The Mall, Heidelberg. OUR PROFESSIONAL ADVISORS Banker Commonwealth Bank of Australia Upper Heidelberg Road, Ivanhoe 3079 Solicitors Best Hooper 563 Little Lonsdale Street Melbourne 3000

Deacons Level 15 RACV Tower 485 Bourke Street Melbourne 3000

Elliott Stafford & Associates 316A Queens Parade Clifton Hill 3068

FOI Solutions Level 5,105 Queen Street Melbourne 3000

Macpherson & Kelley Lawyers 40-42 Scott Street Dandenong 3175 and 114 William Street Melbourne 3000

Hunt and Hunt Lawyers Level 26, 385 Bourke Street Melbourne 3000

Russell Kennedy Level 11, 469 Latrobe Street Melbourne 3000

Maddocks Lawyers 140 William Street Melbourne 3000

Betteridge Legal Consulting PO Box 2142 Ivanhoe East 3079

Meerkin & Apel 56 Greville Street Prahran 3181

Forbes Dowling Lawyers Level 1, 363 King Street Melbourne 3000

Macquarie Lawyers & Strategists Level 6, 124 Exhibition Street Melbourne 3000

Auditors External: Victorian Auditor-General’s Office Level 24, 35 Collins Street Melbourne 3000

Internal (on behalf of Banyule City Council): Oakton Services Pty. Ltd. Level 8, 271 Collins Street Melbourne 3000

Corporate Governance

NATIONAL COMPETITION POLICY COMPLIANCE – 2011/2012 Certification by Chief Executive Officer Banyule City Council has complied with the requirements of the National Competition Policy (NCP) for the period 1 July 2011 to 30 June 2012, in accordance with National Competition Policy and Local Government – A Revised Statement of Victorian Government Policy (Revised 2011) as set out below:

A. Trade Practices Compliance State whether the Council is compliant or non-compliant. If non-compliant, justify or cite actions to redress

B. Local Laws Compliance State whether the Council is compliant or non-compliant. C. Competitive Neutrality Compliance State whether the Council is compliant or non-compliant for all significant businesses.

Compliant Council has fully complied with national trade practices legislation. It continues to promote behaviour that complies with the Competition Code. Compliant Council remains fully compliant with respect to Local Laws. Compliant Council has complied with competitive neutrality requirements for all of its significant businesses.

I certify that: a) this statement has been prepared in accordance with the 2011-2012 National Competition Policy reporting guidelines, and b) this statement presents fairly the Council’s implementation of the National Competition Policy.

Chief Executive Officer Dated:

The Organisation

THE STRUCTURE

The Organisation WORKFORCE DEVELOPMENT Workforce Strategy and Action Plan Workforce Development, in consultation with the Senior Management Team, has reviewed and refined the Workforce Strategy and Action Plan for 2012. The objectives include:        

Continuing to develop an organisational culture that fosters constructive behaviours and supports Banyule’s values Building a capable and united leadership team that models organisational values in the achievement of Council objectives Implementing workforce planning processes to assist Council’s workforce to effectively deliver services Provision of a learning and development program to enhance the skill sets and performance of our workforce Further development and implementation of performance management frameworks to align individuals’ work performance and goals with organisational objectives Continue to implement targeted workforce wellbeing activities Integration of risk management practices into business planning Identify and implement human resources tools and systems to enhance organisational effectiveness and efficiency.

Achievements include:              

Continued implementation of a Workforce Wellbeing Program to prevent injuries and maintain overall wellbeing Learning and development focus groups conducted to identify learning needs across the organisation Safety Leadership program developed and conducted with City Services and Community Programs team leaders and supervisors Employee Value Proposition finalised and implemented in recruitment processes Three Leadership Skills workshops undertaken by the Banyule Leadership Network Emotional Intelligence workshop conducted for Supervisors Continued enhancement of human resources and occupational health and safety policies and practices Successful completion and delivery of Enterprise Agreement No. 5 New Contact Officers selected and training completed Implemented task related manual handling training videos at Parks and Gardens, Operations Depot and Community Programs Transferred Risk Assessments into the new template Continued partnering across the organisation to enhance OH&S performance e-Learning modules introduced Adoption and implementation of Flexible Work Options guidelines

Equal Employment Opportunity Program The Equal Employment Opportunity Program policies updated to reflect current legislative requirements. Specific achievements include: continued implementation of Workplace Behaviour workshops for new staff members and refresher sessions for existing staff members  training for Diversity Contact Officers conducted  active Staff Consultation Forum that involves employee and union representation continues. 

The Organisation

STAFF PROFILE as at June 30, 2012

Directorates

Male

Female

Executive Services

Full Time - Permanent

City Development

103

Full Time - Permanent

Full Time - Temporary

Part Time - Permanent

Part Time - Temporary

Casual

City Services

169

Full Time - Permanent

162

Full Time - Temporary

Part Time - Permanent

Part Time - Temporary

Casual

Corporate Services

Full Time - Permanent

Full Time - Temporary

Part Time - Permanent

Part Time - Temporary

Casual

Community Programs

122

432

Full Time - Permanent

Full Time - Temporary

Part Time - Permanent

262

Part Time - Temporary

Casual

TOTAL:

393

619

Calendar of Council & Community Events 2011/12 July 2011  Four Citizenship Ceremonies were held during 2011/2012 with approximately 400 new citizenship candidates being naturalised. August 2011  Winter in Banyule Art Festival (August 18 - 28). September 2011  Spring Outdoors 2010: organised by Banyule, Manningham and Nillumbik Councils. A series of events celebrating our unique surroundings. October 2011  2011 Banyule Seniors Festival – Month long festivals of events and activities.  Children’s Week (October 24-October 30): Children’s Week celebrates the rights of children to enjoy their childhood. November 2011  Christmas Toys 4 Tots Annual Campaign: supplies toys to approximately 4000 disadvantaged children in Banyule each year at Christmas  White Ribbon Day (November 25): annual event against domestic violence.  Malahang Festival November 13. December 2011  Christmas Carols by Candlelight, Poulter Reserve Greensborough.  Boulevard Christmas Lights (December 10 – 24) January 2012  Australia Day Citizenship Ceremony (January 26) March 2012  Banyule Festival March 24 - 25 Twilight Sounds and Kids ArtyFarty Fest: Council’s annual community festival, fun for all the family at Warringal Parklands, Sills Bend  Cultural Diversity Week (March 17-25). Community groups are invited to apply for mini grants to fund an activity promoting our diverse community during this celebration  Clean Up Australia day (March 4) April 2012  YouthFest 2012 (April 3) – Banyule YouthFest showcases the talents of local creative people and provides a day of safe enjoyment for the Youth of Banyule. May 2012  National Volunteers Week - Banyule Volunteer Awards honouring volunteers across five categories.  Reconciliation Week Flag Raising (May 30). June 2012  Banyule Sports Achievement Awards and Club Recognition Night 27 June hosted by Giaan Rooney

A Summary of Our Best Value Performance Introduction This part of our Annual Report provides a summary of performance against Banyule’s City Plan 20092013 (Year 3). This section also constitutes Council’s Best Value Victoria Annual Report 2011-2012 to our community on the application of the Best Value Principles. The summary outlines the significant achievements and progress made in relation to the objectives and key directions in our City Plan. It highlights the range of initiatives and processes being implemented across Council to meet the needs of our community, meet the Best Value Principles, and promote a culture of continuous improvement. The Best Value legislation, introduced by the State Government in 1999, is based on consideration of the following six principles in providing services to the community: 1. 2. 3. 4. 5. 6.

All services provided by a council must meet quality and cost standards set by Council (having regard to community expectations, affordability, accessibility, value for money and best practice). All services provided by a council must be responsive to the needs of its community. All services provided by a council must be accessible to those members of the community for whom they are intended. A council must achieve continuous improvement in provision of services for its community A council must develop a program of regular consultation with its community in relation to the services it provides. A council must report regularly to its community on its achievements in relation to the first five principles.

Further information on our Best Value response is available on our website in the Best Value section (go to www.banyule.vic.gov.au and follow links to Your Council and Best Value). The following information for each of Council’s services is also available:  Key Performance Indicator (KPI) results  Key Highlights for 2011-2012  Future Challenges for 2012-2013. The diagram on the following page gives an overview of Council’s strategic framework, showing the objectives, key directions and strategic indicators*: (Note: * Progress against Banyule’s strategic indicators is then provided in the next section of our Annual Report.)

A Summary of Our Best Value Performance

Objective: PEOPLE COMMUNITY STRENGTHENING AND SUPPORT Support and strengthen the health and wellbeing of the Banyule community ‘People’ is about our desire for our community to have optimal health, for better living conditions and improved quality of life. Wellbeing is fundamental to quality of life, quality of human relationships and the capacity to participate in education, work, recreation and the community. Outcomes for our key directions: Promote and support good health Health and Fitness membership attendances at both Olympic Leisure Centre (OLC) and Ivanhoe Aquatic and Fitness Centre (IAFC) continue to grow. OLC has averaged a membership base of 500 members and IAFC has averaged 2000 members. The aquatic programs at both centres are continuing to grow and each Centre is at record numbers for enrolments for the Learn to Swim Program.

Responsiveness, Accessibility

The Olympic Leisure Centre had its Open Day in October 2011 with over 300 visitors trying out a number of free activities. The Ivanhoe Aquatic and Fitness Centre held its Open Day in March 2012 which resulted in 262 new members and 264 members renewing their membership.

Accessibility, Community Consultation

An equity grants program was introduced by Council’s leisure services to assist those with financial difficulties to participate. Local service providers such as NEAMI (a non-government mental health organisation), Banyule Community Health, Children’s Protection Society and Austin Hospital nominate clients that they feel could benefit from the use of the centres to assist with health and wellbeing outcomes.

Accessibility, Continuous Improvement

The feasibility and master plan design was completed for the Ivanhoe Aquatic and Fitness Centre. The master plan outlines a four staged redevelopment over a number of years. Funding for detailed design and construction of Stage 1of the master plan has been provided in Council’s Budget 2012/13. Stage 1 includes: expansion of existing gym floor by 450sqm; new entry and reception for the facility improving customer flow and accessibility; improved staff administration hub; inclusion of a café facility with associated seating; addition of lift and stairwell to help movement around the Centre; refurbishment of existing change areas and pool hall, with the addition of a change village and additional car parking. The Ivanhoe Aquatic and Fitness Centre is a key recreation facility in Banyule, attracting over 400,000 visits every year. With the closure of Banksia College and the loss of the two court stadium for community use, negotiations were held with Charles LA Trobe College to gain access to the one court stadium at the site for community use. All users affected by the closure of the courts have now been relocated to OLC, Charles La Trobe, and Olympic Village Primary School. Council is advocating for these facilities to be reopened to the community for community use.

Accessibility, Continuous Improvement, Responsiveness

Accessibility, Responsiveness

A Summary of Our Best Value Performance

Develop a connected and involved community Council has continued to consult with and support, residents and groups from Banyule’s culturally and linguistically diverse communities. The ‘Our Voice Our Community’ project funded by the Federal Government completed its first 12 months of an 18 month period. The project has developed a number of community engagement activities including: Summer in the Village; makers market; pop up art installations at the Olympic Village shops; children’s art activities at Tarakan Housing Estate; Graffiti Expo and Safety Expo. Buna Reserves’ community garden has been opened in West Heidelberg. The garden is a joint initiative between Heidelberg West, Neighbourhood Renewal, the Banyule Community Health Centre and Banyule City Council. The community garden aims to encourage people to learn about gardening, to grow their own fruit and vegetables and to also create a friendly supportive environment where residents from a range of cultural and religious backgrounds can mix and develop friendship and social connections. An Inclusive Arts forum brought together key arts and disability services to create new partnerships and build capacity for the inclusion of people with a disability in the arts. In partnership with Yarra Plenty Regional Library (YPRL), an inclusive theatre performance was delivered with the Grimstones company. This project brought together over 200 community members and celebrated the Deaf community and the language of Auslan. Mini grants were distributed to four community organisations to host events that celebrated International Day of People with Disability 2011. MetroAccess has formed partnerships with local community and disability services which have resulted in opportunities for people with a disability, including:  Yarra Plenty Regional Library working to increase access for the deaf community through staff training, increased programming and capacity building;  Banyule Community Health working with local families to establish and support an Auslan playgroup;  Disability services have established links with local Neighbourhood Houses to create inclusive programs and opportunities.

Accessibility, Continuous Improvement, Responsiveness, Community Consultation

Accessibility, Responsiveness, Community Consultation

Accessibility, Continuous Improvement, Responsiveness, Community Consultation

A Summary of Our Best Value Performance

Provide services and support to, and advocate for, people at important life stages The Home and Community Care (HACC) service unit completed an internal staffing review and restructure enabling the establishment of a fourth HACC delivery team, the appointment of a dedicated service assessment office and a senior admin officer. As a result there has been an improvement in customer service delivery, particularly to new client referrals, as well an increase in efficiency and effectiveness.

Continuous Improvement, Responsiveness, Accessibility Quality and Cost Standards

HACC services have worked with local GPs to improve networking for client care planning, established an introduction to the Social Support program for prospective clients and developed a partnership with Banyule Community Health to deliver occupational therapy.

Community Consultation, Responsiveness, Accessibility

Jets Studios is a creative arts hub for young people. It has continued its significant growth over the past 12 months and partnerships have been sustained and strengthened. The number of young people taking part has increased 23% from the previous year. Of the 742 young people engaged throughout the year, 55% were male and 45% were female, with 22% of the total being people with a disability and 4% young people from indigenous and or CALD backgrounds.

Accessibility, Responsiveness,

Jets secured recurrent funding from State Government to deliver additional disability respite services for young people and their families. This meets an identified service need for after school programs for 13-17 year old young people, and after hours activities for 18-25 year old young people.

Accessibility, Responsiveness,

A Youth Strategic Plan has been developed and provides strategic direction, key objectives and priorities for the next 3 years. Council’s Youth Service undertook extensive consultation with young people and the service sector, along with benchmarking of youth services in a number of local government areas. Partnerships have been a priority in the area known as postcode 3081, as the Youth Services team focuses on delivering capacity enhancing activities using a community development model. Relationships have been strengthened between the Somali Council of Victoria and Council, with a joint youth leadership and volunteering project delivered to Somali young people. In addition, the service developed the “Build a Bike/Scooter” program, delivered in partnership with Open House at the Malahang Bike Hut.

Continuous Improvement, Community Consultation, Responsiveness, Accessibility

Council successfully completed the Youth Foundations 3081 pilot as the auspice body after nearly four years. The initiative was successfully transitioned to a community based model auspiced by the Banyule Community Health Service.

Continuous Improvement,

Stage 1 of the development of a new Municipal Early Years Plan was commenced, with the data and information from 950 surveys of parents and guardians, providing valuable feedback to Council.

Community Consultation,

A Summary of Our Best Value Performance

Planning for the Universal Access of Early Childhood Education continued, through the capacity assessment and change management process with kindergartens and long day care centres across the city. The Early Years planning officer supported 17 services with their development of models for 15 hours of kindergarten programs. Department of Education and Early Childhood Development funded a further $20,000 to assist with planning around the Universal Access to Early Childhood Services (15 hours Kindergarten by 2013). The introduction of increased hours of kindergarten and longer day sessions at Olympic Village Kindergarten has received a significant amount of positive feedback from the community and early years sector.

Continuous Improvement, Community Consultation, Responsiveness, Accessibility, Quality and Cost Standards

Whilst the closure of the Family Day Care program was the challenge of the year, it was an achievement to manage the closure of the service with minimal impact to families and children.

Quality and Cost Standards

Councilâ&#x20AC;&#x2122;s Maternal and Child Health (MCH) service has been working together with Banyule Community Health Partnership offer an enhanced service one day per week to families with complex issues. Recent evidence suggests that women value the opportunity to see the same midwife and MCH nurse for most of their key ages and stages visits. Families are making contact before a situation has turned into a crisis, enabling early intervention and referral. The location at Banyule Community Health allows for easy referral and access to other services such as GPâ&#x20AC;&#x2122;s, dental, legal service, counselling along with a choice of playgroups and parenting groups.

Continuous Improvement, Community Consultation, Responsiveness, Accessibility, Quality and Cost Standards

The enhanced MCH home visiting program is provided for families with significant early parenting difficulties which are best dealt with within the family's own environment - the MCH team managed 112 cases over the past 12 months, with 26 cases open at the end of the financial year. The number of visits attended was 450. The major categories of clients: unsupported young mothers, women in domestic violence situations, families with child protection involvement and women with mental health issues.

Responsiveness, Accessibility,

The vision for the Olympic Village Learning Hub (OVLH) revolves around life-long learning and pathways to education and employment, with planning for integration across the site ongoing for several years now. In May 2012, the project was successful in securing $1.34m capital infrastructure funding from the Victorian Government. This funding, together with Council contribution, will deliver stage one of the OVLH development - the Child and Family Centre.

Continuous Improvement, Community Consultation, Responsiveness, Accessibility,

The finalisation and design of the Citizenship Framework document was completed with the official launch of the document to occur in August. The Citizenship Framework continues to be embedded in the daily tasks undertaken by the Early Childhood Services (ECS) and MCH teams. It complements the National and Victorian Early Learning Frameworks, National Quality Framework and MCH Program Standards and Framework.

Continuous Improvement, Community Consultation, Responsiveness, Accessibility,

A Summary of Our Best Value Performance

Promote community safety The Community Safety Plan was developed and adopted by Council. It provides Banyule with clear direction and priorities for the next four years. Key goals focus on coordination, advocacy, education and primary prevention.

Continuous Improvement, Community Consultation, Responsiveness,

White Ribbon Day (25 November 2011) events were held across the community and within Council, jointly supported by Council’s White Ribbon Action Team and the Banyule-Darebin Community Group. Events included an all-staff White Ribbon BBQ at Rosanna Parklands, participation in the Northern Region Leaders’ Lunch and a forum for the Northern Region White Ribbon Ambassadors. A two year strategy focused on primary Prevention of Violence Against Women was developed by Council’s White Ribbon Action Team.

Community Consultation, Responsiveness, Accessibility,

The innovative StreetArt program continued to attract an average attendance rate of 30 high risk young men per week as part of a graffiti diversion program. StreetArt aims to provide participants with new skills, opportunities for new employment/education pathways and significant psycho-social support. During the past 12 months, 5 legal murals were completed involving a total of 69 young people.

Community Consultation, Responsiveness, Accessibility,

Council’s ‘Adopt Your Space’ distributed 111 graffiti removal kits to residents, community groups and traders. Promotion of the kits has been through a targeted media campaign, attendance at the Banyule Festival, networking with the local branches of the Victoria Police, Neighbourhood Watch and promotion of the program at a Graffiti Expo at Olympic Village, and a Safety Expo at Malahang Reserve.

Community Consultation, Responsiveness,

Council was successful in securing VicRoads approval to continue the Traffic Graffix initiative, where traffic signal boxes in identified graffiti hotspot areas are painted by community artists.

Community Consultation, Responsiveness,

Community The ongoing partnership with the Department of Justice - Community Corrections Work Team has continued to be successful. It has resulted in removal Consultation, Responsiveness, of approximately 10,289 m2 of graffiti and over 60 bags of rubbish from sites across Banyule. Council now has over 40 sites which are visited by the work team on a regular basis.

A Summary of Our Best Value Performance

Celebrate and promote Banyule’s cultural heritage The Cultural Vault Reference Group has worked very closely with Council over the past 12 months to write a Business Plan for the Cultural Vault. Funding has now been secured for the Stage 1 development of converting the Banyule Arts Space to the Cultural Vault.

Community Consultation, Responsiveness,

Council continues to work in partnership with the Heidelberg School Art Foundation and Parks Victoria on the development of Council’s first purpose built art gallery to celebrate the Heidelberg School of Artists and Impressionism. Consultation with the community will continue as Council moves forward on the proposed development.

Community Consultation, Responsiveness, Accessibility,

Council, in partnership with the Banyule Community Health Service, has facilitated a new home for the Dulin Baba Women’s and the Narangetta Men’s Indigenous Cultural Education Programs. The two groups are now located at the Fred Howe Annex, a facility at Olympic Park Heidelberg. The groups focus on connecting local Indigenous people and their families to country, story and contemporary expressions of culture through visual art, storytelling and meeting. The development of this space into a local gathering place for the Koorie community has raised the profile of the groups’ significant achievements in the area and strengthened Council’s relationship with the Indigenous community towards reconciliation and cultural development.

Community Consultation, Responsiveness, Accessibility,

Banyule Festival continues to be very well attended and enjoyed by the Banyule Community community. Twilight Sounds attracted over 2,000 with a great line up of Australian Consultation, Responsiveness, acts. Accessibility,

The Kids Artyfarty Fest attracted well over 8,000 people throughout the day. The Community annual Grand Street Parade had a near record number of participants with over Consultation, Responsiveness, 800 people singing, dancing and marching down Burgundy Street. Accessibility,

Council adopted the new Art Collection Policy in August 2011. This sets the direction for new acquisitions for the Collection for the next 5 years. A range of new works were purchased to add to the significant Banyule Art Collection, which will be exhibited in 2013.

Community Consultation, Responsiveness, Accessibility, Continuous Improvement,

A Summary of Our Best Value Performance Protect and improve public health and wellbeing During the 2011 calendar year, 53 new food businesses opened in the municipality (resulting in a total of 693 premises registered under the Food Act 1984 as at 29 June 2012). Council’s Environmental Health Officers obtained 186 food samples for the purpose of analysis, which met the sampling requirements in the set period of March 2011 to February 2012 . Council also conducted 1,191 statutory inspections of food premises in the year ending 31 December 2011. Council has introduced a new procedure for renewal of registrations. The procedure includes infringement notices for failure to apply for renewal of registration, eliminating the need for use of legal services.

Continuous Improvement, Community Consultation, Responsiveness, Quality and Cost Standards

In addition, 19 new Public Health and Wellbeing premises were opened in the 2011 calendar year, (resulting in a total of 221 Public Health and Wellbeing Act premises as at 30 June 2012). A total of 252 statutory inspections of Public Health and Wellbeing Act premises were conducted during the 2011 calendar year.

Continuous Improvement, Community Consultation, Responsiveness,

Council’s Immunisation Service has been awarded the Department of Health ‘Excellence in Immunisation’ for the development of an easy English document to better support clients. Council’s immunisation schedule runs on a calendar year. During 2011, a total of 12,429 vaccinations were provided at public sessions, 5,901 vaccinations at school sessions and 1,160 at commercial sessions. Council has Maintained an average 92% immunisation coverage over 3 age cohorts (12 -75 months) equal or better than the State average.

Continuous Improvement, Community Consultation, Responsiveness, Quality and Cost Standards

After further community consultation, Council’s Alcohol in Public Places Order was expanded to include three additional activity precincts in Banyule and the expansion of one existing area, giving police greater flexibility to deal with antisocial behaviour.

Community Consultation, Responsiveness,

Public consultation has been conducted in regards to smoke free outdoor areas in preparation for a report and recommendations to Council.

Community Consultation,

Council undertook its annual review of the Domestic Animal Plan in November 2011. The plan contains actions which support and facilitate the benefits of animal ownership and companionship and contribute to the health and wellbeing of residents. It also aims to educate residents about the accepted standards of animal welfare including the care, feeding and physical wellbeing of domestic pets. Banyule Council was the first council in Victoria to have a declaration of a restricted breed dog (under the new Victorian legislation) upheld by VCAT.

Community Consultation, Responsiveness,

A Summary of Our Best Value Performance

Objective: PLANET ENVIRONMENTAL SUSTAINABILITY Conduct Council activities in a sustainable manner, and practice sound stewardship of the natural environment to ensure its diversity, protection and enhancement. ‘Planet’ is about the natural and formed environment and the ecosystems that sustain the community. Our community is an integral part of the environment and together we are the custodians of our shared home. Outcomes for our key directions: Protect and enhance our natural environment Significant progress has been made in the development of Council’s Planet (Environmental Sustainability) Policy and Strategy. This will set the framework for achieving environmental sustainability in Banyule. Council has continued its work to protect rare and threatened species at key locations throughout bush land reserves and enhance the functioning of ecosystems across our municipality. This includes protecting the Eltham Copper Butterfly colony at Andrew Yandell Reserve and orchid/wildflowers species at St Helena Flora Reserve. Council’s Bushland Team has worked with over eight ‘friends groups’, facilitating and preparing worksites for community working bees throughout the year.

Community Consultation, Responsiveness, Continuous Improvement, Responsiveness, Community Consultation, Responsiveness, Accessibility,

Banyule has continued its focus on increasing the number of trees and other vegetation on private land through planning conditions. Interim vegetation controls enabling the protection and enhancement of trees within Banyule have been extended. Through the introduction of tree planting guidelines, applicants are required to design for the provision of significant trees as part of a development as well as the replacement of any trees proposed to be removed. Landscape plans are routinely requested as part of planning permission and require trees to be planted in private property development sites.

Community Consultation, Responsiveness, Continuous Improvement,

Council’s Parks and Gardens team planted a total of 1,975 trees in streets and parks in 2011-2012. It has also co-ordinated the planting of a total 16,103 local native (indigenous) plants in parks and bushland reserves for 2011-2012. This program included 65 community working bees, and over 70 volunteers participated on National Tree Day, planting 2,200 plants.

Community Consultation, Responsiveness, Accessibility, Continuous Improvement,

Council has continued to manage the use of our active and open space assets to preserve their integrity and maximise effective use. Initiatives have included the development, adoption and implementation of a new Sports User Guide and Policy, introduction and implementation of an Outdoor Personal Group Training Policy, and development and adoption of an Active Reserve Strategy.

Community Consultation, Responsiveness, Continuous Improvement,

Works have continue throughout designated sites within Bushland reserves and Wildlife Corridors, including weed control works, vermin control (rabbits, foxes), and bush regeneration and revegetation projects in conjunction with the local friends and community groups.

Community Consultation, Responsiveness, Continuous Improvement, Accessibility,

A Summary of Our Best Value Performance

Council has continued to implement its works program that protects and enhances our waterways, and wetlands. Improvements have been gained around Reedy Billabong with ongoing weed control and planting projects with the Friends of Wilson Reserve and local schools. Work continues on weed control programs and vegetation maintenance, rubbish collection, vegetation maintenance around pathways, within the nominated revegetation/ regeneration sites for the Plenty River corridor, Yarra frontage and the Darebin Creek Waterways. Specific funding has been secured for projects on the Plenty River and Banyule creek.

Community Consultation, Responsiveness, Continuous Improvement, Accessibility,

A Revised Electrical Line Clearance Management Plan was submitted to Energy Safe Victoria. The plan will be implemented during 2012-13.

Responsiveness, Continuous Improvement,

A number of key reserve master-plans have been progressed and are at various stages of finalisation or implementation. These include Telfer Reserve master-plan which has been adopted, and Simms Reserve master-plan which is presently being developed.

Community Consultation, Responsiveness, Continuous Improvement,

Conserve water and improve stormwater quality Development of the Banyule Stormwater Harvesting Project across three sites in Greensborough, Ivanhoe and Rosanna is continuing. The project will build innovative water conservation and stormwater quality improvement systems to capture, treat and store up to 138 million litres of stormwater underground for use on a range of Councilâ&#x20AC;&#x2122;s sports grounds and open space. It will prevent hundreds of tonnes of pollution from reaching waterways and improve habitat for local wildlife. The project is supported by funding from the Australian Government, Ivanhoe Grammar School, the Victorian Government, Melbourne Water and Banyule City Council.

Community Consultation, Responsiveness, Continuous Improvement,

The WaterMarc facility in Greensborough will incorporate a range of water conservation measures including: water efficient toilets, showers and other fixtures, a 200,000 litre rainwater harvesting system for swimming pool top-up, and re-use of pool backwash water for toilet flushing.

Responsiveness, Continuous Improvement,

Deliver action on climate change WaterMarc has incorporated a range of energy efficient measures including double glazed windows, efficient lighting and controls, solar hot water, efficient HVAC (heating, ventilation and air conditioning) and insulation including for the main swimming pool shell. Energy efficient cogeneration for heating and electricity is also being considered.

Responsiveness, Continuous Improvement,

Council partnered with Darebin Council and sought government funding for energy efficient streetlights through the Federal Governmentâ&#x20AC;&#x2122;s $200 million Community Energy Efficiency Program and the State Governmentâ&#x20AC;&#x2122;s $20 million Green Light Plan. Unfortunately, the State Government decided not to go ahead with the Green Light Plan funding and the Federal Government did not award a funding grant to Banyule and Darebin despite a strong proposal.

Community Consultation, Responsiveness,

A Summary of Our Best Value Performance

Avoid waste generation Council continues to provide best practice waste management services to the community, whilst encouraging waste minimisation. Education programs are being reviewed to place emphasis on waste avoidance, so as to minimise the impact of rising waste costs through landfill levies and Environment Protection Authority (EPA) restrictions on processors.

Continuous Improvement, Community Consultation, Responsiveness,

Council continues to work with 10 municipal Councils in the northern and western suburbs to enter into a contract for the long-term processing of green organic waste collected within Banyule. The process used by the North West Councils and the Metropolitan Waste Management Group has been used as a template for all new metro regional waste contracts.

Continuous Improvement, Community Consultation, Responsiveness,

Over 5,200 visitors came to the Rethink Centre which brings the total attendance to more than 51,000 since its opening in 2000.

Responsiveness, Accessibility,

Encourage environmental stewardship Banyule and Darebin Councils have joined forces, with the funding support of the State Government, to provide a three year â&#x20AC;&#x2DC;Sustainable Homes and Communitiesâ&#x20AC;&#x2122; education program for residents, households and community groups. The Program involves workshops and presentations to provide the community with practical information for saving money by reducing energy, water and food bills, producing less waste and creating a more sustainable home and community.

Community Consultation, Responsiveness, Accessibility, Continuous Improvement,

Banyuleâ&#x20AC;&#x2122;s Wildlife Corridor Program continued to deliver biodiversity education to schools and community groups with over 2,000 residents involved across 26 events. Spring Outdoors continued to engage residents in our natural environment through well attended events such as Breakfast with the Birds, Weedbusters at the Rosanna Parklands and Catch a Carp Day at Kalparrin Lake.

Community Consultation, Responsiveness, Accessibility, Continuous Improvement,

The Healthy Waterways Waterwatch education program continued in Banyule and included over 2,000 participants and long term volunteers monitoring waterway health. Monthly monitoring was conducted by a number of groups (including school groups) for 19 sites on the Darebin, Donaldsons and Karringal Creeks, Kalparrin Lake, the Plenty River and the Yarra River and floodplain.

Community Consultation, Responsiveness, Accessibility, Continuous Improvement,

A Summary of Our Best Value Performance Objective: PLACE SUSTAINABLE AMENITY AND BUILT ENVIRONMENT Enable Banyule’s buildings, places and spaces to be more sustainable and encourage communities to live, work, shop, move and play locally. ‘Place’ is about ensuring that the buildings, infrastructure, places and spaces in which we live, shop work and play enhance our sense of wellbeing and belonging. Outcomes for our key directions: Support the character of neighbourhoods and guide growth to accessible places A new Neighbourhood Character Strategy has been drafted and Council will proceed with a planning scheme amendment to replace temporary controls that end on 31 March 2013.

Community Consultation, Responsiveness,

Council has completed a planning scheme amendment that rezoned Council land in Turnham Avenue and Douglas Street in Rosanna in preparation for its sale and the move of Rosanna-based Council staff to Greensborough.

Community Consultation, Responsiveness, Accessibility,

Public exhibition for a planning scheme amendment to protect 65 additional heritage properties throughout Banyule and add a cultural heritage conservation policy to the scheme has also been completed.

Community Consultation, Responsiveness, Continuous Improvement,

Asset management plans for the city’s roads, pathways, bridges, drainage, playgrounds, open space and buildings have been either updated or completed.

Responsiveness,

Council completed the planning and subdivision process for two hectares of land in Ryans Road, Eltham North, with nearly half set aside for a conservation reserve.

Community Consultation, Responsiveness,

In the 2011/2012 financial year, Council’s Development Planning Team completed assessments of 1,239 applications for development, subdivision or tree removal. A total of 1,179 applications were received for development, subdivision or tree removal and this suggests a productive 12 months for the department with 60 more applications being completed than received. A total of 346 minor applications (including 227 amendments to plans and permits) were received and the department completed the assessment of 382 minor applications within the financial year.

Accessibility, Community Consultation, Responsiveness, Continuous Improvement,

Banyule Building Permits and Inspections (BPi) staff continued to deliver a high quality service to the the community and external clients over the year. A total of 1,583 building permits were issued for the year with a value of $220,622,000. Of this total, some 440 building permits were issued for development within Banyule, with a value of $42,234,000. A total of 7,426 building inspections were conducted throughout the year. BPi continued to identify illegal works and dangerous buildings within the municipality and where appropriate enforce the Building Code. The outstanding and active complaints have been reduced from 239 to 104.

Accessibility, Community Consultation, Responsiveness, Continuous Improvement,

A Summary of Our Best Value Performance Support strengthening of local centres of activity Funding has been secured for the Children’s Services Hub in Olympic Village as part of the implementation of the Heidelberg West Neighbourhood Framework. Council has continued to maintain activity centre green spaces and the construction of significant regional play spaces contributes to this. Warringal Playspace provides an activity node close to a major shopping precinct. A range of funding opportunities have been explored and secured from Federal, State and other sources for investment in community assets. This has included water harvesting, sporting facilities, streetscapes and the Watermarc facility.

Community Consultation, Responsiveness, Accessibility, Responsiveness, Accessibility, Community Consultation, Community Consultation, Responsiveness,

Protect and develop publicly used assets A master plan and recovery plan for Price Park has been adopted by Council. The plan recommends strategies to bring the park back to pristine condition, including erosion and drainage control, planting of native vegetation, upgrading of paths, improved playground and picnic facilities and substantial tree works.

Community Consultation, Responsiveness, Accessibility,

The Warringal Park regional play space has been completed with a range of exciting features including climbing, spinning, sliding and swinging equipment, a puzzle maze, cubbies, a double flying fox, picnic and barbeque facilities.

Community Consultation, Responsiveness, Accessibility,

Banyule’s first outdoor gym has been completed at Binnak Park in Watsonia North. The equipment has separate fitness stations for stretching and flexibility, cardio and strength.

Accessibility, Responsiveness,

In addition the pedestrian bridge in Binnak Park has been completed. The bridge is constructed from treated pine deck and hardwood bearers and handrails, and has been coated with a non-slip epoxy protective coating. The bridge links asphalt paths at both ends, and spans over a man-made dam. Residents can enjoy spotting wildlife from the viewing deck in the middle of the bridge.

Responsiveness, Accessibility,

Banyule Flats sporting oval (south) has been converted to warm season grass and the irrigation system has been renewed. Playgrounds at Banyule Native Gardens, Briar Valley Reserve, Winsor Reserve, Olympic Village Green and Donaldson’s Reserve have been replaced.

Continuous Improvement, Responsiveness,

A new 2.5 metre wide shared bicycle and pedestrian trail has been constructed through Sparks Reserve in Ivanhoe and under Heidelberg Road to connect the existing completed section of Darebin Creek Shared Trail with The Boulevard. This will eventually connect with the Main Yarra Trail. This stage of the project has been jointly funded by Council and Parks Victoria.

Community Consultation, Responsiveness, Accessibility, Continuous Improvement, Continuous Improvement, Responsiveness, Quality and Cost Standards,

Street Sweeping and Cleansing services have continued to be delivered to the agreed standards. New requirements for Greensborough, WaterMarc and Town Square have been identified and resources are being sourced for July/August 2012 implementation.

A Summary of Our Best Value Performance

Enhance public spaces In partnership with the Salvation Army and Victoria Police, Council has successfully implemented a trial project to tackle illegal dumping of rubbish at the Watsonia Salvation Army Store. The project has resulted in a 75% reduction in rubbish dumping, the prosecution of offenders and a huge cost saving to the Salvation Army to remove the rubbish.

Community Consultation, Responsiveness,

Every year, thousands of Australians help clean up their environment on Clean-Up Australia Day in March. Council encourages volunteers to join together in a cleanup at a number of sites around the municipality. This year 190 Banyule volunteers collected 1.7 tonnes of litter and rubbish from six sites across the city.

Community Consultation, Responsiveness, Accessibility,

Council’s Parks and Gardens crews planted over 1,625 street trees, and pruned and inspected approximately 35,000 street trees.

Responsiveness, Continuous Improvement,

Support sustainable transport Council has adopted the Activity Centre Car Parking Policy and Strategy. The Residential Parking Permit scheme has been implemented and recommendations from the Greensborough Activity Centre Car Parking Strategy are being implemented. Development of the Heidelberg Parking Strategy has commenced with the preparation of a database for a future parking plan review.

Responsiveness, Community Consultation, Continuous Improvement,

Bicycle lanes have been installed throughout the municipality to improve links to the existing bicycle network in line with Council Bicycle Strategy.

Responsiveness, Accessibility,

Council continues to work with the Department of Transport and the Minister for Transport to improve:  service frequencies and accessibility to our activity centres  access and facilities at railway stations

Accessibility, Responsiveness, Community Consultation,

A Summary of Our Best Value Performance

Objective: PROSPERITY PROSPEROUS AND SUSTAINABLE LOCAL ECONOMY Support economic development opportunities in a sustainable manner for a thriving Banyule economy. ‘Prosperity’ is about fostering economic conditions so that people in the community can achieve financial independence and a sustainable quality of life. Outcomes of our key directions: Support and encourage appropriate business development and local economic growth The Prosperity Strategy and Policy has been drafted and incorporates the Economic Development and Employment Policy and Strategy. This document encourages local employment opportunities and access to jobs.

Community Consultation, Responsiveness, Continuous Improvement,

Council has continue to regularly update Banyule businesses through e-bulletins and quarterly newsletters about new initiatives, opportunities and key changes to legislation that may impact their business

Community Consultation, Accessibility, Continuous Improvement,

More than 600 people attended economic development events including networking events, training and development sessions, business advisory service meetings and a State Government funded group delivery program. These included:  ‘Banyule and Darebin Business Breakfast Series’ – two business breakfasts held in collaboration with Darebin Council  ‘Women in Business Lunch’ – held in October 2011  Small Business Workshops and Seminars – seminars delivered in collaboration with small business Victoria on a range of topics including ‘starting your own business’, ‘winning government business’, ‘commercialising your new idea’, ‘getting your business organised’, ‘getting the right staff’ and ‘budgeting and forecasting’.  Small Business Advisory Service – nine sessions held (6 bookings available at each session). These are confidential one-on-one sessions where current and prospective businesses can obtain free advice from an experienced advisor from the Box Hill Business Enterprise Centre.  Group delivery program – Council received a $15,000 state government grant to run a group marketing program with 10 local businesses.

Community Consultation, Responsiveness, Accessibility, Continuous Improvement,

In addition to the above (and not included in our figures) are the Northern Business Achievement Award breakfasts that we support. There are four of these per year with at least 200 in attendance per session.

Community Consultation, Accessibility,

A Summary of Our Best Value Performance

Improve access to affordable housing, employment, health and community services Council has continued its commitment to improve the viability of retail centres by expanding its matched special rate and charge funding for shopping centres in Greensborough, Montmorency, Eaglemont, Watsonia and Macleod.

Responsiveness, Continuous Improvement,

Council has continued to deliver structure plans to activity centres to provide opportunities for mixed use development, increasing housing choice, and increasing employment choice for Ivanhoe and The Mall. A master-plan was prepared for Bell Street Mall and the development of a new draft Ivanhoe Structure Plan has commenced.

Community Consultation, Responsiveness, Accessibility, Continuous Improvement,

Encourage appropriate investment in our activity centres A new draft Ivanhoe Structure Plan is being developed, with extended public consultation taking place involving about 1,200 stakeholders, including expanded resident membership on the Ivanhoe Community Consultative Committee.

Community Consultation, Responsiveness, Accessibility,

Council has been successful in securing additional funds for streetscape works in Greensborough, towards the completion of Greensborough Walk and an upgrade of Main Street including a new pedestrian crossing.

Community Consultation, Responsiveness, Accessibility,

Banyule has continued to work with Trader Associations to maximise the marketing of key activity centres

Community Consultation, Responsiveness, Accessibility,

Build community capital Council continues to advocate to the State Government and Places Victoria for the development of the two former school sites in West Heidelberg and Bellfield. The advocacy has been aimed at ensuring the appropriate redevelopment of the sites and the inclusion, replacement and enhancement of appropriate community infrastructure and meeting places.

Community Consultation, Responsiveness, Accessibility,

Banyule has continued to work closely with its community to deliver successful events as part of its events calendar. These have included: Banyule Festival, Malahang Festival, Winter In Banyule, and Carols and Boulevard Lights

Community Consultation, Responsiveness, Accessibility,

In addition, the planning, coordination and implementation of informal leisure programs as a tool for community engagement has been very successful in delivering a range of free community events including: Games Night with movie screening at Watsonia Library (twice), Community BBQ in Parks for Playground, Launches, Bike Rides and bike repairs workshops, Local Nature Walks, Exercise Programs in Parks, and Preserve Making Workshops.

A Summary of Our Best Value Performance

Council has continued to partner with agencies to support community activities such as emergency management coordination. Government and non-government agencies are represented on the Municipal Emergency Management Planning Committee as required, which meets quarterly. The new Fire Management SubCommittee with appropriate agency representation was convened formally in May 2012 with the final adoption of the new Fire Management Plan and transfer to the new sub-committee in August 2012.

Community Consultation, Responsiveness, Accessibility,

The â&#x20AC;&#x2DC;Planning for Good Governance Projectâ&#x20AC;&#x2122; for the Olympic Village Learning Hub was conducted in partnership with other government departments and community stakeholders. The project was completed in December 2011, with presentation of two final reports "OVLH Governance and Financial Model" and "Engagement Strategy." This project was overseen by the collective OVLH Partnership group in consultation with relevant stakeholders at appropriate stages of the process.

Community Consultation, Responsiveness, Accessibility,

A Summary of Our Best Value Performance

Objective: PARTICIPATION COMMUNITY INVOLVEMENT IN COMMUNITY LIFE Govern effectively by appropriately engaging the community in issues that affect them, and advocate for the broader interest of the community. ‘Participation’ is central to good governance. Outcome of our key directions: Plan and engage with our community Council has adopted the Banyule Indigenous Australians Commitment Plan, 201216, and 2012-13 Action Plan, which was launched at this year’s Welcome to Country & Indigenous Australian Flag Raising Ceremony.

Community Consultation, Responsiveness, Accessibility,

Banyule has continued to support the Community’s implementation of The Banyule Community Plan.

Community Consultation, Responsiveness, Accessibility Community Consultation, Responsiveness, Accessibility,

Preparation and Planning for the General Election in October 2012 are underway, including tendering for services for the Conduct of the Election, Stand for Council Campaign and General Advertising Plan for the elections. This includes website information on the elections, how to enrol to vote and becoming a Councillor. In accordance with best practice and advice from Local Government Victoria, an Election Caretaker Period Guideline was developed to cover the period leading up the Elections being held on 27th October 2012. These guidelines cover the period that Council goes into ‘caretaker mode’ and no major decisions are to be made. Governance Practice notes were developed to assist both Councillors and staff adhere to these guidelines during this period.

Continuous Improvement, Responsiveness, Accessibility,

An Induction Presentation/Program was developed to assist staff in understanding the key legislative requirements of the Governance area, specifically in relation to key Ombudsman’s’ reports on Conflicts of Interest, Receiving of Gifts, and Privacy.

Continuous Improvement,

A Local Government Inspectorate Audit was conducted for Banyule and this identified that a high level of compliance was being achieved. Particular mention was made of the Public information Register and the manner it was maintained.

Responsiveness, Continuous Improvement, Reporting

A Summary of Our Best Value Performance

Encourage participation in community life Over 400 Banyule residents became Australian citizens over the past 12 months. Council held 4 citizenship ceremonies during the year including an Australia Day event.

Accessibility,

The Banyule Community Volunteers Awards were held in May during National Volunteers Week with 480 guests in attendance. A total of 50 nominations were received and a total of 16 residents and groups were recognised including two Lifetime Achievements, five individuals, two young people, five groups and two Good Neighbours.

Accessibility, Continuous Improvement, Responsiveness, Community Consultation

Advocate on behalf of the community One of Council’s key governance functions is to advocate on behalf of its community on issues of importance. By representing the interests of the community in a range of forums, we have the ability to attract additional resources to the municipality and resolve issues that affect how we live.

Responsiveness, Continuous Improvement,

Over the past twelve months Council has advocated on various cost shifting issues. A submission was sent to the Federal Government supporting the proposed financial recognition of Local Government in the Constitution in order to secure direct Commonwealth funding for local communities.

Community Consultation, Responsiveness,

The Mayor wrote to the MAV and various State and Federal Ministers advocating for continued “Take-a-break” funding for Occasional Care Centres.

Responsiveness,

Banyule forms part of seven councils in the northern region of Melbourne that travelled to Canberra in November 2011and March 2012. Mayors and CEOs from all seven Councils attended Parliament and presented to relevant Ministers, showcasing the benefits of the region including social, economic, recreational and business opportunities. Banyule presented specifically on the Olympic Village Learning Hub and the Ivanhoe Aquatic Centre.

Community Consultation, Responsiveness,

Council took part in the ‘Rail Corridor Management’ workshop with representatives from the VLGA, Metro Trains, V/Line, VicTrack and the Public Transport Ombudsman and other Councils. This workshop enabled participants to communicate issues raised by the public through to the relevant body that looks after the rail corridors.

Community Consultation, Responsiveness,

Council officers met with Minister for Planning, The Hon. Matthew Guy, Minister for Environment and Climate Change, The Hon Ryan Smith, and the Premier and Minister for the Arts, The Hon Ted Ballieu, Parks Victoria, and Melbourne Water, to advocate for support on the development of the Impressionist Lab Gallery.

Community Consultation, Responsiveness,

Council wrote to the Department of Education and Early Childhood Development (DEECD) to make a formal submission for Council to manage and operate the stadium and theatre facilities at Banksia Secondary College, whilst the Department undertakes its site disposal process. The aim was to ensure valued community access to these facilities.

Community Consultation, Responsiveness, Accessibility,

A Summary of Our Best Value Performance

Council has continued to advocate on behalf of the community in relation to funding and cost shifting issues associated with Aged and Disability Services.

Community Consultation, Responsiveness, Accessibility,

A letter was sent from Eastern Group of Councils to the Minister for Environment and Climate Change regarding dumped rubbish.

Community Consultation, Responsiveness,

Council’s Strategic Planning area has been advocating for better tree protection by approaching the State Government for better vegetation protection when land is residentially developed. They are also advocating for better Environmental Sustainable Development guidelines in the Planning Scheme, to enable more efficient use of resources when new buildings are constructed.

Responsiveness,

Council has advocated for better State Government investment in Heidelberg West. This has been explored through discussions with Places Victoria to prompt their interest to lead public sector investment in the area. This advocacy focused on public investment for the Bell Street Mall's future as an even better retail hub, with commercial and residential development. The outcome of this advocacy has led to Places Victoria showing interest in former school sites. Council is now advocating for good community facility outcomes for these locations, whilst continuing to work with landowners and traders for the Bell Street Mall's future.

Community Consultation, Responsiveness, Accessibility,

The Strategic Planning area has been advocating for the secured future of Warringal Parklands and Banyule Flats. The State Government previously started work to plan for the 'missing link' between the Eastern Freeway and Ring Road. Sensitive environments have the potential to be affected if this link is built in the future. Advocacy is being conducted to raise the importance of Warringal Parklands and Banyule Flats.

Community Consultation, Responsiveness, Accessibility,

Advocacy has also been undertaken for better recognition of heritage so that future land development within Banyule can be better informed by local heritage interests. This has been conducted by commissioning heritage consultants and collecting community nominations, and resulted in 66 additional heritage places being added to Banyule's Heritage Register in 2012.

Community Consultation, Responsiveness, Accessibility,

Council continues to:  advocate with VicRoads on transport issues including: road safety issues; road use hierarchy; Bolton Street care and management; funding for intersection upgrades; and Greensborough Principal Bicycle Network and other issues such as maintenance of roadside vegetation.  liaise with the Department of Transport regarding issues associated with the Hurstbridge rail line upgrade including Stephens Street Station upgrade.  Urge Victoria Police to undertake turn bans and speed enforcement at various locations within Banyule.

Community Consultation, Responsiveness, Accessibility, Continuous Improvement,

A Summary of Our Best Value Performance

Objective: STRATEGIC RESOURCE PLAN: USE OUR RESOURCES WISELY Manage the non-financial and financial resources required for the next four years to achieve Council’ strategic objectives. Outcome of our key directions: Provide excellence in customer service and communications Council has started implementation of its corporate communications plan, focusing on branding and promotion, digital media and community engagement. A major element of the plan is the redevelopment of Banyule’s website and the introduction of social media. Stage1of the redevelopment has commenced and will be live in early December 2012.

Community Consultation, Responsiveness, Accessibility,

A number of marketing and branding campaigns have been undertaken across Council, including 2011 Seniors Festival, 2012 Twilight Sounds, Kids Arty Farty Fest, Youth Fest and Carols by Candlelight, Ivanhoe Structure Plan, and the Storm Water Harvesting Project.

Continuous Improvement,

During 2011-12 we developed and launched the name and branding, identity, marketing strategy and collateral for the Greensborough Project. WaterMarc is the name of Council’s new regional aquatic and leisure centre in Greensborough.

Responsiveness,

In the State Government’s Annual Community Satisfaction Survey 2012, Banyule’s result of 74 for ‘Customer Service’ was above the average for the Inner Melbourne Metropolitan Group and above the State-wide average. In addition, we have undertaken a mystery shopping program with Customer Service Benchmarking Australia which provided us with independent reporting on our service levels and style.

Community Consultation, Accessibility, Continuous Improvement,

Council’s Customer Service Charter and our internal customer service standards Community Consultation, has been reviewed and will be relaunched towards the end of 2012. One of biggest challenges Customer Service has faced this year has been the introduction of the Voice over Internet Protocol (VoIP) phone system and Geomant call centre system.

Accessibility, Continuous Improvement,

The Banyule Household Survey was conducted in 2011, and provides valuable information to assist with forward planning and identifying improvement opportunities for service delivery.

Community Consultation,

Council continues to deliver our ‘Out & About’ program to foster better links and information flows with the community. Under this program, members of the customer service team (supported by service unit staff) attend community centres and events to promote Council and community programs and services, as well as educate the community on how to best access the services and opportunities available to them. This very successful program has a particular focus on groups who have difficulty in accessing Council information or services, for example senior citizens groups.

Community Consultation, Responsiveness, Accessibility,

A Summary of Our Best Value Performance

Develop our staff and organisational culture During the last financial year, Banyule has continued to implement its Workforce Strategy and Action Plan, including:  adopted and implemented its Flexible Work Options guidelines 

continued implementation of a Workforce Wellbeing Program for the prevention of injuries and to maintain overall wellbeing



learning and development focus groups were conducted to identify learning needs across the organisation.



introduced e-learning modules



conducted a series of workshops for the Banyule Leadership Network and for supervisors, including leadership skills and emotional intelligence workshops



the Employee Value Proposition was finalised and implemented in the recruitment processes. These clear attributes are available for our local community to see in all our recruitment efforts.



Council has successfully concluded a negotiated outcome for the three year Enterprise Agreement No. 5.

Council is committed to developing and implementing innovative human resource strategies that promote staff development, achievement and wellbeing. To achieve this, Banyule has continued to implement a range of key initiatives and programs including: 

The ‘Working Together Working Better’ program which provides a values framework for staff to: respect each other, have clear purpose, take ownership, seek opportunity and involve others.



An Organisational Cultural Program to support the growth and development of our organisational culture through development strategies that focus on achieving agreed and accepted values and behaviours.

During 2011-2012, the Senior Management Team has continued its work to strengthen the direction and effectiveness of workforce planning and organisational cultural aspects.

Community Consultation, Responsiveness, Continuous Improvement, Accessibility,

Responsiveness, Accessibility, Continuous Improvement,

A Summary of Our Best Value Performance Manage our valuable corporate information and knowledge Council has established an Information Management Working Group. The following tasks have been undertaken in readiness for the implementation of a new Electronic Document and Records Management System (EDMRS): 

Appointment of a Project Manager.



Appointment of a consultant to assist with the development of a tender specification, change management plan and implementation strategy.



Extensive tender evaluation process, including site reference checks, vendor demonstrations and implementation workshops



Facilitation of Information Management (IM) Steering Committee to capture IM decisions.



Establishment of ‘Bills Buddies’ to be champions of the new EDMRS and assist with cultural change pre and post implementation.



Developed a Business Classification Scheme to provide a better structure for the capture and management of Records.

Community Consultation, Responsiveness, Accessibility, Continuous Improvement,

Deliver innovative information technology solutions Over the last financial year, the IT Team has delivered a range of foundation technologies as identified in the ‘Technology Vision 2020 and Delivery Plan,’ with the aim to best position Council in meeting the future technological challenges. Some of the key achievements in this area are as follows: 

Implemented the Unified Communication Solution using Voice over Internet Protocol (VoIP) to replace outdated PABX/Telephony systems.



Upgraded the wireless WAN (Wide Area Network) link between Ivanhoe Austin - Rosanna to Greensborough to provide improved connectivity to the business.



Improved VoIP services and its reliability by replacing VMware (virtual) servers, and deployment of new 2008r2 AD (server for active directory) at Nets, Olympic and Ivanhoe BLFM sites, and also implemented Ivanhoe Aquatic ‘Club 2.0’ software to support the Technogym Wellness system.



Completed the technology platform in readiness for Windows 7 and Office 2010 rollout by undertaking a series of upgrades, modifications and systems assessments.

The IT Team has established and is implementing the technology platform to deliver effective, efficient and reliable IT services for WaterMarc in Greensborough.

Community Consultation, Responsiveness, Accessibility, Continuous Improvement,

A Summary of Our Best Value Performance

Conduct effective and integrated forward planning During 2011-2012 we have continued with our significant work to strengthen the corporate planning process. The planning process commenced early (in October 2011) to enable timely and better integration with the budget process. In the development of Banyule’s City Plan 2009-2013 (Year 4) there was a particular focus on further clarifying the intent of the City Plan key directions and identifying clear focus areas. The set of strategic indicators used to monitor progress against our City Plan objectives has also been strengthened. These aspects of corporate planning contribute greatly to Council delivering services in a more strategic, coordinated and responsive way to meet the needs of the community. Our strategic indicators were reviewed to ensure best representation of our performance, to provide good quality information, and to respond to the findings in a recent report ‘Business Planning for Major Capital Works and Recurrent Services in Local Government (September 2011),’ by the Victoria AuditorGeneral’s Office (VAGO). The indicators chosen represent broad measures of success in areas that are within our control or of significant interest to Council. They help us to assess our efficiency and indicate effectiveness and the quality of the services we provide. They aim to monitor progress against Council’s priority areas within each objective.

Community Consultation, Responsiveness, Accessibility, Continuous Improvement,

Community Consultation, Responsiveness, Continuous Improvement, Reporting

Council has continued the development and implementation of its key policy and strategy framework in relation to its City Plan objectives, and the 10 year Strategic Asset Plan. This ongoing work will inform the major City Plan review at the end of 2012. In addition to the Corporate Planning Program (City Plan and Organisational Annual Business Plan), all service units have conducted an annual review process to report on their performance in the previous year and plan their service for the following year. This includes:  reviewing Service Objectives and Quality & Cost Standards  completing an end of year report (action plan, summary of performance/ key highlights and KPIs)  conducting service unit/directorate planning for the next year  reviewing performance against last year’s action plan and relevant KPis, and taking into account community feedback from ongoing consultation  determining priorities and key challenges  developing an updated action plan. Council has an integrated database that facilitates the management of actions for service units and the organisation. During 2011-2012, Banyule completed its transition to its new system, ‘Interplan’ (which replaced the former Corporate Information Database (CID)). Interplan is used to report on key plans, including service unit plans. Council’s performance against the City Plan and Budget is reported in Banyule’s Annual Report.

Community Consultation, Responsiveness, Accessibility, Continuous Improvement, Reporting

Community Consultation, Responsiveness, Continuous Improvement, Reporting

A Summary of Our Best Value Performance

As a further level of sophistication in performance improvement, the organisation has developed a better understanding of four determined core capabilities: 

Engagement - engage community – understand and represent our community and its interests (eg. Communications Plan, Inclusion Policy and plans).



Resources - allocation decisions – balance competing demands and allocate resources optimally (eg. a 10 Year Capital Works Plan, and the Strategic Property Group to focus our commercial opportunities).



Services - deliver effective services – provide the right service, right time, right level (eg. Communications Plan, the Electronic Document Records Management System (EDRMS) project, and the Voice over Internet Protocol (VoIP) replacement telephony system).



Visioning - future visioning – envisage the future and plan for it (eg. continuation of policy framework around the ‘5P’s’ – People, Planet, Place, Prosperity and Participation).

These are four key interrelated capabilities that are vital to achieving our City Plan objectives and contributing to community satisfaction with Council’s services.

Community Consultation, Responsiveness, Accessibility, Continuous Improvement, Reporting

A Summary of Our Best Value Performance

Deliver quality and value for money services Council remains committed to a Best Value process in its service delivery and service support. The annual planning process for each service unit has incorporated the development of a comprehensive action plan for continuous improvement and ongoing service provision. The Best Value action plans developed through the service review process address the key issues and opportunities for improvement resulting from community consultation and benchmarking programs, and the review of the Quality and Cost Standards and current work practices. Quality and Cost Standards are reviewed and updated annually. The documents also incorporate links to the City Plan and other key Council plans, and a brief service profile. Banyule City Council holds externally audited certification in the areas of quality, the environment and safety. This certification program and associated integrated management system form the foundation of our continuous improvement and best value system. Council successfully maintained certification following an annual surveillance audit held in August 2011 with Council’s current certification body, Global-Mark Pty Ltd. Banyule’s continuous improvement program aims to:  Continue to effectively apply the Best Value principles and meet the Best Value Legislation  Maintain certification to quality, environmental, and occupational health and safety standards, and provide strong and sustainable continuous improvement to ensure future success  Continue to meet the changing needs of the community.

Community Consultation, Responsiveness, Accessibility, Continuous Improvement, Quality and Cost Standards, Reporting,

Organisational systems relating to Best Value (Banyule Management System) have been reviewed. This included providing support to the Steering Committee and Working Group, facilitating the Internal Audit Program, maintaining system documentation and communication, facilitating training to relevant staff members, liaising with external auditors and assisting with the close-out of audit findings. Banyule’s service units have continued to participate in service unit regional networks, which share information and explore alternative ways of solving common problems or issues. In addition to service-specific benchmarking projects undertaken as part of Best Value service reviews, Banyule also utilises the State Government’s Annual Community Satisfaction Survey. The survey provides a reliable and valid measure to compare and contrast performance in a range of key service areas (categories), and in relation to other metropolitan councils. The surveys measure how well Banyule is performing in the delivery of services (e.g. waste management) and key overall governance aspects such as advocacy, customer service,community engagement and overall performance. They enable councils to monitor performance and also provide valuable information about opportunities for improvement.

Community Consultation, Responsiveness, Accessibility, Continuous Improvement, Quality and Cost Standards, Reporting,

A Summary of Our Best Value Performance

One of the more recent industry benchmarking projects involved the development of a new Victorian Local Government Community Satisfaction Survey (CSS) for 2012, which was co-ordinated by the Department of Planning and Community Development (DPCD). Due to the significant changes to the methodology and content of the CSS in 2012, comparisons could not be made with the CSS results for surveys conducted in 2011 or before. The 2012 survey results provide a benchmark which will enable Banyule to track comparisons with results in future years. The survey also enables Banyule to compare its results with Councils in the same group (ie. the Inner Melbourne Metropolitan Group) and with the State-wide average results for all participating Councils.

Community Consultation, Responsiveness, Accessibility, Continuous Improvement, Quality and Cost Standards, Reporting,

Although the 2012 survey methodology has changed, Banyule Council has continued to achieve strong results. Banyule’s performance was relatively high in most of the measured service areas, and in comparison with the Inner Group and State-wide results.

Community Consultation, Responsiveness, Accessibility, Continuous Improvement, Quality and Cost Standards, Reporting,

The survey results this year, and the consistently high results over previous years of the survey, demonstrate Banyule’s ongoing commitment to continuous improvement and meeting the needs of our community. Further information on Banyule’s Community Satisfaction Survey results is provided in the Performance Statement section of this Annual Report (Banyule’s Key Strategic Activities for the Year Ending 30 June 2012). In addition to specific community consultation projects undertaken as part of individual Best Value service reviews, Banyule also conducts community consultation and stakeholder forums prior to developing or revising corporate policies and strategic plans. We also draw on other current community consultation data sources such as:  Key Council plans and strategies (e.g. City Plan, People: Health and Wellbeing Policy and Strategy, State of the Environment Report, Municipal Strategic Statement, Cultural Strategy and the Recreation Strategy). 

Demographic information on residents and businesses.



A comprehensive Household Survey conducted in 2011, which has added to our knowledge of our Community.

Community Consultation, Responsiveness, Accessibility,

Further consultation details are provided in the Corporate Governance section of the Annual Report. This Best Value Victoria Annual Report is included as part of Banyule’s Annual Report document and is also available on Banyule’s website in the comprehensive Best Value section (go to www.banyule.vic.gov.au and follow links to Your Council and Best Value). Council also regularly utilises our community newsletter The Banner to report back to the community on our achievements, including Best Value service improvements.

Community Consultation, Responsiveness, Accessibility, Reporting,

A Summary of Our Best Value Performance

Apply sound risk management principles and practices Our Risk Management Policy was revised and adopted in May 2012. Banyule has also commenced development of an Interplan Integrated Risk Manager (IRM) module to manage the revised Corporate Risk Register and link risk management actions, tracking and reporting to the Annual Business Plan. In addition, Banyule has continued to enhance occupational health and safety policies and practices. Task-related manual handling training videos have been implemented for our Parks and Gardens team, for teams based at our Operations depot, and for our Community Programs areas.

Community Consultation, Continuous Improvement, Responsiveness,

A Safety Leadership program was developed and conducted with City Services and Community Programs team leaders and supervisors.

Continuous Improvement,

Councilâ&#x20AC;&#x2122;s Business Continuity Plan (BCP) has been revised and prepared for formal adoption (and subsequent testing in 2012/13).

Continuous Improvement, Responsiveness,

Provide effective support to enable good governance and accountable leadership A new reporting process on the outcomes of Council meeting resolutions was introduced earlier in the year. Monthly reports are provided to Senior Management providing information on the status of a Council resolution and the actions undertaken n relation to the resolution. This helps Senior Management monitor the actions undertaken and the actions that still require follow-up, and keeps Councillors and members of the public informed on progress of key items. A new process has been introduced at Council meetings to capture questions arising from the Council Meeting Public forum (the informal question time before the meeting). This enables questions and queries that cannot be answered at the meeting to be documented. Such questions are passed on the relevant department the day after the Council meeting and a response is then provided to the enquirer. Once a month Councillors are updated on the progress of such questions that were taken on notice from the Council meeting.

Community Consultation, Responsiveness, Accessibility, Continuous Improvement, Quality and Cost Standards, Reporting,

A Summary of Our Best Value Performance

Plan and manage Banyule’s physical assets Asset management plans for the city’s roads, pathways, bridges, drainage, playgrounds, open space and buildings have been updated or completed. Council’s commitments to direct development towards appropriate locations, encourage good design, and maximise the value of Council’s existing assets, continue to be implemented. Fleet Management services continue to be delivered to agreed standards with operating and vehicle capital replacement budgets coming under budget in 2011/12. A survey of fleet users into the satisfaction with workshop, fleet management and vehicle changeover and breakdown services has been undertaken with actions developed to address any issues identified. Fleet size and composition has also been reviewed to minimise environmental impacts based on vehicle size and efficiency.

Responsiveness, Continuous Improvement,

Responsiveness, Continuous Improvement, Quality and Cost Standards,

Manage our financial resources in a sustainable manner Council continued to refine and develop the information and system used to determine Council’s long-term strategic financial planning estimates. This information has been utilised by management to compile the operating budget for future years.

Responsiveness, Continuous Improvement,

The Power Budget reporting structure has been updated to streamline the production of the notes within our end of year accounts. The Procurement team has continued to provide education and support for procurement activities and contract management for service units. Monitoring of adherence to the Procurement Policy and the Procurement and Contract Guidelines has continued and been reported to management as required. The Local Government Inspectorate Audit conducted for Banyule included procurement and identified a high level of compliance.

Community Consultation, Continuous Improvement, Responsiveness, Reporting,

Banyule’s Four Year Strategic Indicators

These indicators measure achievements against Council’s objectives over a four year period. They include a mix of:  Key data gathered by Council and other agencies to assist in evaluating community wellbeing (e.g. percentage of waste diverted from landfill)  Community Satisfaction Indices (CSI) measured by the State Government in its annual survey of Local Governments in Victoria. Together these indicators provide a comprehensive measure of the achievement of the long-term objectives of Council and the community. The indicators chosen represent broad measures of success in areas that are within our control or of significant interest to Council. They help us to assess our efficiency and indicate effectiveness and the quality of the services we provide. They aim to monitor progress against Council’s priority areas within each objective.

Banyule’s Four Year Strategic Indicators

Indicators

Actual

Target

2010-2011

2011-2012

Benchmark comparison with Inner Group

Actual 2011-2012

CSS 2011-12

1.People: Community strengthening and support 1.1

Percentage of people who feel safe in Banyule

97%

80%

95%

1.2

Percentage of people who feel they ‘belong’ in Banyule

87%

80%

82%

1.3

Community Satisfaction Index score for:

1.4

1.3a

Elderly Support Services (performance)*

Inner Group average 66*

69*

1.3b

Family Support Services (performance)*

Inner Group average 67*

64*

1.3c

Disadvantaged Support Services (performance)*

Inner Group average 65*

64*

Inner Group average 73*

72*

1,500

Target 1,500

1,975

5,000

Target 5,000

16,103

Inner Group average 65*

68*

56%

Target 56%

55%

Inner Group average 75*

77*

<1%

Target 30% by 2011-12

<1%

90%

Community Satisfaction Index score for Recreational Facilities (performance)*

2.Planet: Environmental sustainability 2.1

Number of tree plantings (Council tree plantings in streets and parks)

2.2

Number of local native (indigenous) plants planted

2.3

Community Satisfaction Index score for Environmental Sustainability (performance)*

2.4

Percentage of waste diverted from landfill

2.5

Community Satisfaction Index score for Waste Management (performance).

2.6

Reduction in Council’s greenhouse gas emissions. (compared with 1996-97 base data)

2.7

2009-10 result 95%

Performance against State of Environment Report (% actions completed on time)

2010-11 result 91%

Banyuleâ&#x20AC;&#x2122;s Four Year Strategic Indicators

Indicators

Actual

Target

2010-2011

2011-2012

Benchmark comparison with Inner Group

Actual 2011-2012

CSS 2011-12

3.Place: Sustainable amenity and built environment 3.1

VLG infrastructure indicator: renewal ratio

3.2

Number of street trees planted

3.3

Attendances at Council provided aquatic centres

(1.53:1)

Target 1:1

3.95:1

Target 1,200

1,625

Target 1% increase

87.6% increase

increase

(Number of visits per annum to council provided aquatic centres) 3.4

Community rating for local development and neighbourhood character within Banyule

Target 80%

61%

3.5

Community Satisfaction Index score for The Appearance of Public Areas (performance).

Inner Group average 71*

70*

3.6

Community Satisfaction Index score for Condition of local streets and footpaths (performance)

Inner Group average 63*

61*

3.7

Community Satisfaction Index score for Councilâ&#x20AC;&#x2122;s general town planning policy (performance)

Inner Group average 55*

57*

3.8

Community Satisfaction Index score for:

3.9

3.8a

Elderly Support Services (performance)*

Inner Group average 66*

69*

3.8b

Family Support Services (performance)*

Inner Group average 67*

64*

3.8c

Disadvantaged Support Services (performance)*

Inner Group average 65*

64*

Inner Group average 65*

68*

Community Satisfaction Index score for Environmental Sustainability (performance)*

Banyuleâ&#x20AC;&#x2122;s Four Year Strategic Indicators

Indicators

Actual

Target

2010-2011

2011-2012

Benchmark comparison with Inner Group

Actual 2011-2012

CSS 2011-12

4.Prosperity: Prosperous and sustainable local economy 4.1

$ building approvals

4.2

Employment Rate

4.3

Community Satisfaction Index score for:-

(10% decrease)

Target: Remain at 2010-2011 figures(no decrease)

97%

Target 97%

96.3%

2.1% increase

4.3a

Planning and building permits (performance)*

Inner Group average 54*

58*

4.3b

Business and community development and tourism (performance)*

Inner Group average 61*

60*

Banyule’s Four Year Strategic Indicators Indicators

Actual

Target

2010-2011

2011-2012

Benchmark comparison with Inner Group

Actual 2011-2012

CSS 2011-12

5.Participation: Community involvement in community life 5.1

Community Satisfaction Index score for Overall Performance

Inner Group average 66*

69*

5.2

Community Satisfaction Index score for Council’s Customer Service

Inner Group average 73*

74*

5.3

Community Satisfaction Index score for Council’s Community Consultation and Engagement

Inner Group average 58*

58*

5.4

Community Satisfaction Index score for Council’s Lobbying on behalf of the community (Advocacy)

Inner Group average 57*

58*

6. Strategic Resource Plan: Use our resources wisely 6.1

Community Satisfaction Index score for Overall Performance

Inner Group average 66*

69*

6.2

Community Satisfaction Index score for Council’s Customer Service

Inner Group average 73*

74*

6.3

Percentage of projects in New Works and Services Program completed on time

82%

90%

87%

6.4

Achievement of the budgeted result or better.

Result Achieved

Result Not Achieved due to Superannuation Call Expense

6.5

Maintain full certification for all services to the most recent National/ International standards in Quality, Occupational Health & Safety, and Environmental Management.

Certification Achieved

6.6

Percentage of core IT systems availability

100%

Target 98%

99.8%

6.7

Percentage of official Council and Committee meetings attended by Councillors where a quorum was achieved

100%

6.8

WorkCover premium as a percentage of payroll

2.34%

2.20%

Not available until September Note: Result 2010-11 = 2.34%

6.9

CMP risk management state-wide audit ranking

Top 8% of Councils

Top 10% of Councils

Fourth quartile

(MAV Insurance state-wide audit ranking/overall score)

(Overall score 70%) 72

Banyule’s Four Year Strategic Indicators General Notes and Glossary of Terms 

Inner Group:- Inner Melbourne Metropolitan Group (Inner Group) of councils



CSS: - Victorian Local Government Community Satisfaction Survey (CSS) for 2012, co-ordinated by the Department of Planning and Community Development (DPCD)



*Indicators and results are based on survey measures in the CSS for 2012, in response to the changes in survey methodology and content. Banyule’s original CSS indicators have been substituted with the appropriate (related) new measures. These are listed for comparison with the Inner Group average results. Community Satisfaction Index (CSI) scores are commonly used in the market research industry to represent the extent of customer satisfaction.



As stated in Banyule’s budget documents 2011-2012 (in the ‘Banyule's Key Strategic Activities - For the Year Ending 30 June 2012’), the indicators are reviewed on an ongoing basis to ensure continued alignment with Council’s objectives and priorities, and are subject to change. Subsequently, these indicators were reviewed in line with Banyule’s ongoing planning process, and through Banyule’s involvement with the Department of Planning and Community Development’s (DPCD) process to develop a reporting framework for the local government sector.



Indicators 1.1 and 1.2 - These indicators are measured on a ‘0 to 10’ rating scale. The percentage results are based on the total percentage of people who have given a rating of 5 or more on the rating scale. These indicators were measured via the 2012 Victorian Local Government Community Satisfaction Survey (CSS) co-ordinated by the Department of Planning and Community Development (DPCD). These are additional questions for Banyule, and results are not necessarily directly comparable with previous results due to survey sampling changes implemented this year. The average scores out of 10 were as follows: 

1.1 - people who feel safe in Banyule = 8.0 in 2010-11, 7.8 in 2011-12



1.2 - people who feel they ‘belong’ in Banyule = 6.6 in 2010-11, 6.1 in 2011-12



Results are shown with (-) where a result is not comparable due to changes in survey methodology, where indicators were not part of the 2010-11 Strategic Indicator set, or where a result is not applicable or relevant.



Indicator 2.6 - The result of <1% is compared with 1996-97 base data and represents a result of 16,081 tonnes equivalent of CO2 emissions in 2009-10, and 15,935 tonnes in 2010-11. This is a lag indicator, which currently requires significant resource and effort to calculate. The results provided have been assessed three months after the 2009-10 and 2010-11 annual reporting periods.



Indicator 6.8 – Result not available until September 2012. This is a lag indicator, and the results provided have been assessed three months after the 2009-10 and 2010-11 annual reporting periods.



Indicator 6.9 – The CMP audit ranking for 2010-11 is based on the 2009-2010 result as an assessment/ audit was not conducted for Banyule in 2010-2011. Banyule obtained an overall score of 70% in 2011-2012. The State Average score was 80%. Banyule has requested a re-assessment in 2012-2013. This will enable Council to review progress and evaluate and address the aberration in result.

Banyuleâ&#x20AC;&#x2122;s Four Year Strategic Indicators ď&#x201A;ˇ

The following is an extract of a letter from the Department of Planning and Community Development (Circular No. 25/2012, dated 19 July 2012). It helps to explain the extent of change associated with the 2011-12 baseline and methodology occurring in our Strategic Indicators, and in our Key Strategic Activities (included in our Performance Statement): Text for Annual Report In light of the changes, LGV has prepared the following wording to help explain the key changes in survey methodology. Councils may wish to use this wording in their annual reports or other information material to inform readers of the changes in the methodology. Councils are advised that this wording should not form part of a council's performance statement but could be included in the "Report of Operations" section of a council's annual report. "In response to feedback from local councils, Local Government Victoria introduced methodological and content changes to the CSS in 2012 to provide the sector with more reliable and meaningful results to inform decision making and support strategic planning. The survey provides core questions as well as optional questions which councils can pick and choose from depending on their particular information and reporting needs. Councils are also able to include their own tailored questions and sampling requirements. Methodological improvements to the CSS in 2012 included increasing the sample size from the previous minimum of 350 respondents per municipality up to 400 respondents and ensuring that the sample reflects the demographic composition of a municipality. The survey also allows for respondents to be "residents over 18 years of age" instead of restricting respondents to "head of household". These changes together with revisions to the performance scale and scoring have improved the useability of the survey. For these reasons, direct comparison with previous CSS results is not possible."

Victorian Local Government Indicators VICTORIAN LOCAL GOVERNMENT INDICATORS

2010/11

2011/12

Actual

All Rates Average Rates & Charges per Assessment

$1,232.37

$1,294.47

Residential Rates Average Rates & Charges per Residential Assessment

$1,165.29

$1,216.35

Debts Average Liabilities per Assessment

$1,069.51

$1,319.71

Operating Result Operating Result per Assessment

$132.02

-$52.03

Operating Costs Average Operating Expenditure per Assessment

$2,199.00

$2,297.32

69*

$519.30

$914.54

1.53:1

3.95:1

2.61:1

2.18:1

58*

Overall Performance Community satisfaction rating (index score) for overall performance generally of the Council*

Capital Expenditure Average Capital Expenditure per Assessment

Infrastructure Renewal # #

Renewal & Maintenance

Advocacy Community satisfaction rating (index score) for Council's lobbying on behalf of the community*

Community Consultation and Engagement Community satisfaction rating (index score) for Council's community consultation and engagement*

Notes: 

After excluding capital grants of $4,325,000 ($3,343,000 in 2010-11) and developers contributions of $1,256,000 ($1,076,000 in 2010-11), the Operating Result will be changed from -$52.03 ($132.02 in 2010-11) to -$160.87 ($45.23 in 2010-11).



Victorian Local Government Community Satisfaction Survey (CSS) for 2012, co-ordinated by the Department of Planning and Community Development (DPCD). Indicators and results are based on survey measures in the CSS for 2012, in response to the changes in survey methodology and content. Banyule’s original CSS indicators have been substituted with the appropriate (related) new measures. Due to the significant changes to the methodology and content of the CSS in 2012, comparisons cannot be made with the CSS results for surveys conducted in 2011 or before. Community Satisfaction Index (CSI) scores are commonly used in the market research industry to represent the extent of customer satisfaction.



Ratio current spending on capital renewal of existing infrastructure assets which returns the service potential or the life of the asset up to that which it had originally to the AAAC totalled for each and every infrastructure asset to give one ratio. Ratio of current spending on capital renewal of existing infrastructure assets which returns the service potential or the life of the asset up to that which it had originally plus current spending on maintenance: To AAAC plus all anticipated planned and unplanned maintenance (that is, the expected level of maintenance which was used the calculation of the useful life of the asset) Total for each and every infrastructure asset to give one ratio The Average Annual Asset Consumption (AAAC) is the amount of a local government’s asset base consumed during a year. It is based on the current replacement cost ‘as new’ divided by useful life

Banyule City Council Performance Statement for the Year Ended 30 June 2012

Performance Statement for the Year Ended 30 June 2012

Contents

Page No

Banyule’s Key Strategic Activities – Results for the year ended 30 June 2012

Banyule’s Annual Strategic Activities - Explanatory Notes on Targets, Actual Results and Differences

Certification of Performance Statement

Auditor-General’s Independent Audit Report

Performance Statement for the Year Ended 30 June 2012

Banyule's Key Strategic Activities For The Year Ended 30 June 2012 (Includes Explanatory Notes on Targets, Actual Results and Differences)

Strategic Activities

Indicators

Target

Actual

2011-2012/

2011-2012

Benchmark comparison with Inner Group

for Banyule

Target 80%

95%

Difference

1.People: Community strengthening and support 

Promote and support good health



Develop a connected and involved community



Provide services and support to, and advocate for, people at important life stages



Promote community safety



Celebrate and promote Banyule’s cultural heritage



Protect and improve public health and wellbeing

1.1

Percentage of people who feel safe in Banyule

+15% Achieved target

This indicator is measured via the 2012 Victorian Local Government Community Satisfaction Survey (CSS) co-ordinated by the Department of Planning and Community Development (DPCD). This is an additional question for Banyule, and results are not necessarily directly comparable with previous results due to survey sampling changes implemented this year. The result demonstrates a strong result for people feeling safe in Banyule. (Note: This indicator is measured on a ‘0 to 10’ rating scale. The percentage result is based on the total percentage of people who have given a rating of 5 or more on the rating scale. The average score out of 10 was 7.8 in 2011-2012.) 1.2

Percentage of people who feel they ‘belong’ in Banyule

Target 80%

82%

+2% Achieved target

This indicator is measured via the 2012 CSS co-ordinated by the DPCD. This is an additional question for Banyule, and results are not necessarily directly comparable with previous results due to survey sampling changes implemented this year. The result demonstrates a relatively strong result for people feeling connected in Banyule. (Note: This indicator is measured on a ‘0 to 10’ rating scale. The percentage result is based on the total percentage of people who have given a rating of 5 or more on the rating scale. The average score out of 10 was 6.1 in 2011-2012.) 1.3

Community Satisfaction Index score for:

Not achieved

This indicator is measured via the new (CSS) survey for 2012. Refer to indicators 1.3a1.3c below. The original indicator, ‘Community Satisfaction Index rating for Health & Human Services,’ was not measured in the new CSS for 2012. Subsequently, this indicator has been replaced by related indicators as listed below. This is in response to the changes in survey methodology and content in the CSS for 2012. Comparisons with the Inner Melbourne Metropolitan Group (Inner Group) of councils are also provided. 1.3a

Elderly Support Services (performance)*

Inner Group average 66*

69*

+3 Achieved target/benchmark

This indicator is measured via the new (CSS) survey for 2012. Banyule has compared favourably with the Inner Group (scoring 3 points above the group average), and also with the State-wide results (scoring equal).

Performance Statement for the Year Ended 30 June 2012 Strategic Activities

Indicators

Target

Actual

2011-2012/

2011-2012

Benchmark comparison with Inner Group

for Banyule

Difference

1.People: Community strengthening and support (Continued) 

Promote and support good health



Develop a connected and involved community



Provide services and support to, and advocate for, people at important life stages



Promote community safety



Celebrate and promote Banyule’s cultural heritage



1.3b

Family Support Services (performance)*

Inner Group average 67*

64*

-3 95.5% achievement against target/benchmark

This indicator is measured via the new (CSS) survey for 2012. Banyule scored slightly lower than the Inner Group average (by 3 points). In addition, the survey results indicated the following: - Banyule’s score for the 18-34 year old group was equal to the Inner Group average (67). - A total of 86% of surveyed residents gave a rating of very good, good or average. This is higher than the percentage for the Inner Group average (63%) and the State-wide average result (67%). - For percentage of respondents providing a rating of ‘Can’t say’ there were large variations - Inner Group average (33%), State-wide average (37%), and Banyule (only 3%). 1.3c

Disadvantaged Support Services (performance)*

Inner Group average 65*

64*

Community Satisfaction Index score for Recreational Facilities (performance)*

Inner Group average 73*

72*

-1 98.5% achievement against target/benchmark This indicator is measured via the new (CSS) survey for 2012. Banyule scored slightly lower than the Inner Group average (by 1 point) and slightly higher than the State-wide average (by 1 point). In addition, the survey results indicated the following: - Banyule’s score for men (69), men 18-49 (70) and the 18-34 year old group (71) were all significantly higher than the Banyule overall score for this measure, and higher than the Inner Group average. The score for men 50+ (65) was equal to the Inner Group average. - A total of 58% of Banyule’s surveyed residents gave a rating of very good, good or average. This is slightly higher than the percentage for the Inner Group (56%) average. - The percentage of respondents providing a rating of ‘Can’t say’ were: Inner Group average (39%), and Banyule (35%).

Protect and improve public health and wellbeing

1.4

-1 98.6% achievement against target/benchmark This indicator is measured via the new (CSS) survey for 2012. Banyule scored slightly lower than the Inner Group average (by 1 point) and slightly higher than the State-wide average (by 2 points). In addition, the survey results indicated the following: - Banyule’s score for women (73), women 18-49 (73) and the 35-49 year old group (73) were all equal to the Inner Group average. Banyule’s 65+ year olds gave a score (75) that was higher than the Inner Group average - A total of 90% of Banyule’s surveyed residents gave a rating of very good, good or average. This is similar to the percentage for the Inner Group (91%) average. 79

Performance Statement for the Year Ended 30 June 2012 Strategic Activities

Indicators

Target

Actual

2011-2012/

2011-2012

Benchmark comparison with Inner Group

for Banyule

Target 1,500

1,975

Difference

2.Planet: Environmental sustainability 



Protect and enhance our natural environment

2.1

(Council tree plantings in streets and parks)

Conserve water and improve stormwater quality



Deliver action on climate change



Avoid waste generation



Encourage environmental stewardship

Number of tree plantings

+475 Achieved target

The trees were planted in line with the scheduled tree planting program for 2011-2012, which was increased from 1,500 to 1,975 plants (representing a 32% increase). 2.2

Number of local native (indigenous) plants planted

Target 5,000

16,103

+11,103 Achieved target

The 16,103 local native (indigenous) plants were planted in parks and bushland reserves, in line with the planting program for 2011-2012. This program included community working bees. 2.3

Community Satisfaction Index score for Environmental Sustainability (performance)*

Inner Group average 65*

68*

+3 Achieved target

This indicator is measured via the new (CSS) survey for 2012. Banyule’s score (68) is significantly higher than both the average for the Inner Group of councils (65) and the State-wide average (64). In addition, the survey results indicated the following: - Banyule’s score for the 18-34 year old group (72) was significantly higher than Banyule’s overall result for this measure - A total of 81% of Banyule’s surveyed residents gave a rating of very good, good or average. This is slightly higher than the percentage for the Inner Group average (79%). Council has continued to perform strongly in this area. The original indicator, ‘Community Satisfaction Index rating for Sustainability and the Environment,’ was not measured in the new CSS for 2012. This was previously an ‘additional question’ that Banyule incorporated in the CSS and it consisted of four indicators relating to environmental sustainability. Subsequently, Banyule has replaced this set of indicators with the equivalent indicator in the CSS for 2012 (in response to the changes in survey methodology and content in the CSS for 2012). 2.4

Percentage of waste diverted from landfill

-1% 98.2% achievement against target This result reflects a small drop in recycling per household and a small increase in the amount of garbage per household. The two have combined to cause a slight reduction in diversion since 2010-11. 80

Target 56%

55%

Performance Statement for the Year Ended 30 June 2012

Strategic Activities

Indicators

Target

Actual

2011-2012/

2011-2012

Benchmark comparison with Inner Group

for Banyule

Inner Group average 75*

77*

Difference

2.Planet: Environmental sustainability (Continued) 

Protect and enhance our natural environment



Conserve water and improve stormwater quality



Deliver action on climate change



Avoid waste generation



Encourage environmental stewardship

2.5

Community Satisfaction Index score for Waste Management (performance).

+2 Achieved target/ benchmark

This indicator is measured via the new (CSS) survey for 2012. The result of 77 was above the average for the Inner Group (75) and significantly higher than the State-wide average (72). Banyule has maintained its strong performance in Waste Management. This was the highest service performance score for Banyule. In addition, the survey results indicated the following: - A total of 94% of surveyed residents gave a rating of very good, good or average - Banyule’s scores for the 65+ age group (82) was significantly higher than the Banyule overall score for this measure. 2.6

Reduction in Council’s greenhouse gas emissions. (compared with 1996-97 base data)

Target 30% by 2011-12

<1% 2010-11 result

Target not achieved on this occasion

The result of <1% is compared with 1996-97 base data and represents a result of 15,935 tonnes equivalent of CO2 emissions in 2010-11. This is a lag indicator, which currently requires significant resource and effort to calculate. The result provided has been assessed three months after the 2010-11 annual reporting period. 2.7

Performance against State of Environment Report (% actions completed on time)

Target 90%

91%

+1% Achieved target

Combined with indicator 2.3, this result demonstrates strong commitment by Council to sustaining the environment.

Performance Statement for the Year Ended 30 June 2012

Strategic Activities

Indicators

Target

Actual

2011-2012/

2011-2012

Benchmark comparison with Inner Group

for Banyule

Target

3.95:1

Difference

3.Place: Sustainable amenity and built environment 

Support the character of neighbourhoods and guide growth to accessible places



Support strengthening of local centres of activity



Protect and develop publicly used assets



Enhance public spaces



Support sustainable transport

3.1

VLG infrastructure indicator: renewal ratio

1:1

+2.95 Achieved target

This indicator is being updated in line with Banyule’s ongoing planning process to ensure continued alignment with Council’s objectives and priorities. The indicator is also included in Banyule’s updated set of Strategic Indicators for 2012-2013. The result reflects Banyule’s expenditure in its Greensborough WaterMarc project (Aquatics and Recreation Centre). 3.2

Number of street trees planted

Target 1,200

1,625

+425 Achieved target

The trees were planted in line with the scheduled street tree planting program for 2011-2012, which was increased from 1,200 to 1,625 plants (representing a 35% increase). 3.3

Attendances at Council provided aquatic centres

Target 1% increase

87.6% increase

+86.6% Achieved target

(Number of visits per annum to council provided aquatic centres)

Attendance figures were 575,094 in 2011-2012, compared with 306,476 in 2010-2011 (representing an 87.6% increase). This significant increase can be attributed to improvements in systems and processes to enable more accurate capture of attendance data. 3.4

Community rating for local development and neighbourhood character within Banyule

Target 80%

development was favourable: 22%

Not Achieved 61%

neutral: 22% development was unfavourable: 28%

This indicator was measured in the Banyule Household Survey 2011 (conducted by Metropolis Research). Residents were asked: ‘What effect, if any, do you believe new housing and housing development has had on your local area?’ Based on a total of 740 respondents, the results were: - Generally improved: 21.7% - Had no effect: 22.4% - Made the area worse: 27.6%

3.5

Community Satisfaction Index score for The Appearance of Public Areas (performance).

Inner Group average 71*

70*

-1 98.6% achievement against target/ benchmark

This indicator is measured via the new (CSS) survey for 2012. The result of 70 was similar to both the Inner Group (71) and State-wide average (71). This was amongst the highest service performance scores for Banyule. A total of 91% of surveyed residents gave a rating of very good, good or average.

Performance Statement for the Year Ended 30 June 2012

Strategic Activities

Target 2011-2012/ Benchmark comparison with Inner Group

Indicators

Actual

Difference

2011-2012 for Banyule

3. Place: Sustainable amenity and built environment (Continued) 

Support the character of neighbourhoods and guide growth to accessible places



Support strengthening of local centres of activity



Protect and develop publicly used assets



Enhance public spaces



Support sustainable transport

3.6

Community Satisfaction Index score for The condition of local streets and footpaths in your area (performance)

Inner Group average 63*

61*

-2 96.8% achievement against target/ benchmark

This indicator is measured via the new (CSS) survey for 2012. The result of 61 was two points less than the average for the Inner Group (63) and significantly higher than the State-wide average (57). In addition, the survey results indicated the following: A total of 81% of Banyule’s surveyed residents gave a rating of very good, good or average Banyule’s scores for men 18-49 (67) and the 18-34 year old group (67) were significantly higher than the Banyule overall score for this measure. 3.7

Community Satisfaction Index score for Council’s general town planning policy (performance)

Inner Group average 55*

57*

+2 Achieved target/ benchmark

This indicator is measured via the new (CSS) survey for 2012. The result of 57 was higher than the average for the Inner Group (55) and significantly higher than the State-wide average (54). In addition, the survey results indicated the following: A total of 64% of Banyule’s surveyed residents gave a rating of very good, good or average. Banyule’s score for 18-34 year old group (63) was significantly higher than the Banyule overall score for this measure. 3.8

Community Satisfaction Index score for:

This indicator is measured via the new (CSS) survey for 2012. Refer notes for indicators 1.3a-1.3c 3.8a

Elderly Support Services (performance)*

Inner Group average 66*

69*

+3 Achieved target/ benchmark

This indicator is measured via the new (CSS) survey 2012. Refer to notes for indicator 1.3a 3.8b

Family Support Services (performance)*

Inner Group average 67*

64*

-3 95.5% achievement against target/ benchmark

This indicator is measured via the new (CSS) survey 2012. Refer to notes for indicator 1.3b 3.8c

Disadvantaged Support Services (performance)*

Inner Group average 65*

64*

-1 98.5% achievement against target/ benchmark

This indicator is measured via the new (CSS) survey 2012. Refer to notes for indicator 1.3c 3.9

Community Satisfaction Index score for Environmental Sustainability (performance)*

Inner Group average 65*

68*

+3 Achieved target

This indicator is measured via the new (CSS) survey 2012. Refer to notes for indicator 2.3

Performance Statement for the Year Ended 30 June 2012 Strategic Activities

Target 2011-2012/ Benchmark comparison with Inner Group

Indicators

Actual 2011-2012 for Banyule

Difference

4.Prosperity:- Prosperous and sustainable local economy 

Support and encourage appropriate business development and local economic growth



Improve access to affordable housing, employment, health and community services



Encourage appropriate investment in our activity centres



Build community capital

4.1

4.2

$ building approvals

Target: Remain at 2010-2011 figures (no decrease)

2.1% increase

+2.1% Achieved target

This indicator is based on Building Commission building permits data for Banyule (value of building works for all building uses and all types of building works). It includes permits issued by Banyule Council and by private building surveyors. The result for 2010-2011 was $308,641,131 (1,526 permits) and the result for 2011-2012 was $314,973,227 (1,460 permits). This represents a 2.1% increase in value of building works from 2010-11 to 2011-12. It is considered likely that this is due to the costs associated with increasing building requirements, eg. 6 star energy rating requirements, and new bushfire standards. Applicability of this indicator was reviewed and this measure will not be continued in 2012-2013. -0.7% Employment Rate Target 97% 96.3% 99.3% achievement against target Banyule’s employment rate of 96.3% is significantly higher than the Melbourne Metropolitan area (93.8%), the State of Victoria (94.2%) and Australia as a whole (94.8%). Over the past year, Australia’s employment rate has remained steady, but the rates for Victoria and Melbourne have fallen. Banyule’s employment rate has fallen but not significantly. (Labour force statistics, ABS, March 2012). Applicability of this indicator was reviewed and this measure will not be continued in 20122013.

4.3

Community Satisfaction Index score for:-

This indicator is measured via the new (CSS) survey for 2012. Refer to indicators 4.3a and 4.3b below. The original indicator, ‘Community Satisfaction Index rating for Economic Development,’ was not measured in the new CSS for 2012. Subsequently, this indicator has been replaced by related indicators as listed below. This is in response to the changes in survey methodology and content in the CSS for 2012. 4.3a

Planning and building permits (performance)*

Inner Group average 54*

58*

+4 Achieved target/benchmark

This indicator is measured via the new (CSS) survey for 2012. Banyule’s score (58) is significantly higher than both the average for the Inner Group of councils (54) and the State-wide average (54). Council has performed strongly in this area. In addition, the survey results indicated the following: A total of 66% of Banyule’s surveyed residents gave a rating of very good, good or average. Banyule’s scores for men 18-49 (67) and the 18-34 year old group (70) were significantly higher than the Banyule overall score for this measure. -1 Business and community Inner Group 60* development and tourism average 61* 98.4% (performance)* achievement against target -

4.3b

This indicator is measured via the new (CSS) survey for 2012. Banyule’s score (60) is close to the average for the Inner Group of councils (61) and the State-wide average (62). In addition, the survey results indicated the following: -

A total of 68% of Banyule’s surveyed residents gave a rating of very good, good or average. Banyule’s scores for the 18-34 year old group (65) was significantly higher than the Banyule overall score for this measure.

Performance Statement for the Year Ended 30 June 2012

Strategic Activities

Target 2011-2012/ Benchmark comparison with Inner Group

Indicators

Actual

Difference

2011-2012 for Banyule

5.Participation: Community involvement in community life 

Plan and engage with our community



Encourage participation in community life



Advocate on behalf of the community

5.1

Community Satisfaction Index score for Overall Performance

Inner Group average 66*

69*

+3 Achieved target/benchmark

This indicator is measured via the new (CSS) survey for 2012. Banyule’s score (69) is significantly higher than both the average for the Inner Group of councils (66) and the State-wide average (60). Council has performed strongly in this area. In addition, the survey results indicated the following: Banyule’s scores for residents in the 18-34 year old group (76) and men aged 18-49 (73) were significantly higher than Banyule’s overall result for this measure (69). A total of 96% of Banyule’s surveyed residents gave a rating of very good, good or average. This is slightly higher than the percentage for the Inner Group average (91%). 5.2

Community Satisfaction Index score for Council’s Customer Service

Inner Group average 73*

74*

+1 Achieved target/benchmark

This indicator is measured via the new (CSS) survey for 2012. Banyule’s score (74) for Customer Service is 3 points higher than the State-wide average (71) and 1 point higher than the Inner Group average (73). It is based on the 57% of Council residents who have had contact with Banyule City Council in the last 12 months. A total of 85% of Banyule’s surveyed residents gave a rating of very good, good or average. This indicator has been updated in line with the CSS for 2012, and replaces the original indicator: ‘Community Satisfaction Index rating for Council’s interaction and responsiveness in dealing with the public (Customer Contact).’

5.3

Community Satisfaction Index score for Council’s Community Consultation and Engagement

Inner Group average 58*

58*

0 Achieved target/benchmark

This indicator is measured via the new (CSS) survey for 2012. Banyule’s score (58) for Consultation is 1 point higher than the State-wide average (57) and equal to the Inner Melbourne Metropolitan average (58). This indicator has been updated in line with the CSS for 2012, and replaces the original indicator: ‘Community Satisfaction Index rating for Council’s engagement in decision making (i.e. consultation and partnership) on key local issues (Community Engagement).’

5.4

Community Satisfaction Index score for Council’s Lobbying on behalf of the community (Advocacy)

Inner Group average 57*

58*

+1 Achieved target/benchmark

This indicator is measured via the new (CSS) survey for 2012. Banyule’s score (58) for Advocacy is significantly higher than the State-wide average (55) and 1 point higher than the Inner Melbourne Metropolitan average (57). This indicator has been updated in line with the CSS for 2012, and replaces the original indicator: ‘Community Satisfaction Index rating for Council’s advocacy and community representation on key local issues (Advocacy).’

Performance Statement for the Year Ended 30 June 2012 Strategic Activities

Target 2011-2012/ Benchmark comparison with Inner Group

Indicators

Actual

Difference

2011-2012 for Banyule

6. Strategic Resource Plan: Use our resources wisely 

Provide excellence in customer service and communications



Develop our staff and organisational culture



Manage our valuable corporate information and knowledge



Deliver innovative information technology solutions

6.1

Community Satisfaction Index score for Overall Performance of Council

6.2

Community Satisfaction Index score for Council’s Customer Service

6.3

Deliver quality and value for money services



Apply sound risk management principles and practices

6.4

Achievement of the budgeted result or better.



Provide effective support to enable good governance and accountable leadership

6.5

Manage our financial resources in a sustainable manner

Inner Group average 73*

Percentage of projects in year 1 of 10 year capital works program completed on time.



+3 Achieved target/ benchmark

74*

+1 Achieved target/ benchmark

This indicator is measured via the new (CSS) survey 2012. Refer to note for Indicator 5.2

Conduct effective and integrated forward planning

Plan and manage Banyule’s physical assets

69*

This indicator is measured via the new (CSS) survey 2012. Refer to note for Indicator 5.1



Inner Group average 66*

90%

87%

-3 96.7% achievement against target

This remains a strong result with the majority of projects being delivered to the community in the projected time-frames. Result Achieved

Result Not Achieved due to Superannuation Call Expense

Maintain full certification for all services to the most recent National/ International standards in Quality, Occupational Health & Safety, and Environmental Management.

Certification Achieved

6.6

Percentage of core IT systems availability

Target 98%

99.8%

+1.8% Achieved target

6.7

Percentage of official Council and Committee meetings attended by Councillors where a quorum was achieved

Target 100%

100%

0 Achieved target

6.8

WorkCover premium as a percentage of payroll

Target 2.20%

Not available until September

N/A 0.14% Target not achieved on this occasion

Note: Result 201011 = 2.34%

Result not available until September 2012. This is a lag indicator, and the result provided has been assessed three months after the 2010-11 annual reporting period. Note: Actual result for 2009-10 was 2.54%, and Actual for 2010-11 was 2.34%. 6.9

CMP risk management statewide audit ranking(MAV Insurance state-wide audit ranking/overall score)

Top 10% of Councils

Fourth quartile (Overall score 70%)

Target not achieved on this occasion

Banyule obtained an overall score of 70% in 2011-2012. The State Average score was 80%. Banyule has requested a re-assessment in 2012-2013. This will enable Council to review progress and evaluate and address the aberration in result.

Performance Statement for the Year Ended 30 June 2012 General Notes and Glossary of Terms 

Inner Group:- Inner Melbourne Metropolitan Group (Inner Group) of councils



CSS: - Victorian Local Government Community Satisfaction Survey (CSS) for 2012, co-ordinated by the Department of Planning and Community Development (DPCD)



Supporting Information Summary Community satisfaction scores come from the 2012 Community Satisfaction Surveys (CSS) conducted by the JWS Research Group on behalf of the Department of Planning and Community Development and Victorian Councils. Due to the significant changes to the methodology and content of the CSS in 2012, comparisons cannot be made with the CSS results for surveys conducted in 2011 or before. The 2012 survey results provide a benchmark which will enable Banyule to track comparisons with results in future years. The survey also enables Banyule to compare its results with Councils in the same group (ie. the Inner Melbourne Metropolitan Group) and with the State-wide average results for all participating Councils. Although the 2012 survey methodology has changed, Banyule Council has continued to deliver strong results, with relatively high performance in most of the measured service areas. Banyule’s CSI score for ‘Overall Performance’ (69) is significantly higher than both the average for the Inner Group of councils (66) and the State-wide average (60). Banyule scored strongly in the other core performance measures. Results were as follows:  74 for Customer Service – this is 3 points higher than the State-wide average (71) and 1 point higher than the Inner Group average (73). It is based on the 57% of Council residents who have had contact with Banyule City Council in the last 12 months.  58 for Community Consultation and Engagement – this is 1 point higher than the State-wide average (57) and equal to the Inner Melbourne Metropolitan average (58).  58 for Advocacy – this is significantly higher than the State-wide average (55) and 1 point higher than the Inner Melbourne Metropolitan average (57).  55 for Overall Council Direction – this is significantly higher than the State-wide average (52) and 1 point higher than the average for the Inner Group (54).

Performance Statement for the Year Ended 30 June 2012

Supporting Information Summary (continued) In comparison to the Inner Group average, Council scored higher on all core performance measures except for Consultation, where it scored equal to the average. Banyule has scored higher than the State-wide average for all of the core measures, with significantly higher results in the case of Overall Performance, Advocacy and Council Direction. Survey respondents were also asked: ‘How has Council performed on ‘Informing the Community’ over the last 12 months?’ The overall average rating was 68, higher than both the average for the Inner Group (63) and the State-wide average rating (61). When asked the best thing about Council, the top areas included:  Well maintained and appealing parks and gardens (13%)  Polite and accessible customer service, including response time (12%)  Recreational and sporting facilities (11%)  Generally a good place to live (10%) Residents were asked to rate a range of Council services for importance as a responsibility for Council and also Council’s performance on those same services over the last 12 months. Residents rated waste management (80) and elderly support services (79) highest in importance. The information provided by the survey will assist Banyule in identifying areas for improvement across the range of measures surveyed, to ensure it continues to provide effective service delivery. Banyule’s results across the selected range of service performance measures were solid and compared favourably with the Inner Group and State-wide results. A summary of the results is as follows:   



Banyule’s results were higher than or equal to the Inner Group average in 10 of the 17 service categories measured, and only one point lower than the average in a further five of the categories. In comparison with the State-wide average, Banyule’s results were higher than or equal in 13 of the 17 categories measured. Banyule’s results were significantly higher than the Inner Group average for: ‘Environmental sustainability,’ and ‘Planning and building permits.’ Strong comparative results were also obtained for: ‘Elderly support services,’ ‘Waste management,’ ‘Council’s general town planning policy,’ and ‘Enforcement of local laws.’ The result for ‘Family support services’ was significantly lower against the Inner Group and State-wide results. In comparison with the State-wide average, Banyule’s results were significantly higher for: ‘Environmental sustainability,’ ‘Waste management,’ ‘The Condition of local streets and footpaths in your area,’ ‘Council’s general town planning policy,’ ‘Planning and building permits,’ and ‘Enforcement of local laws.’ Strong comparative results were also obtained for: ‘Art centres and libraries’ and ‘Recreational facilities.’ Banyule’s service performance scores were highest for: ‘Waste management,’ ‘The appearance of public areas,’ ‘Recreational facilities,’ and ‘Art centres and libraries.’

Banyule has incorporated two further questions in the survey (CSS 2012). This enables Banyule to continue to monitor Council’s performance and to gain additional information about the important measures of: how safe people feel in Banyule, and how connected to the community they feel. These tailored questions were based on a rating scale. For ‘Percentage of people who feel safe in Banyule’ there was strong satisfaction with local safety, with a result of 95%. For ‘Percentage of people who feel they ‘belong’ in Banyule’, a strong result of 82% was maintained in 2011-2012.

Performance Statement for the Year Ended 30 June 2012

Supporting Information Summary (continued) Council has an integrated database that facilitates the management of actions for service units and the organisation. During 2011-2012, Banyule completed its transition to its new system, ‘Interplan’ (which replaced the former Corporate Information Database (CID)). Interplan is used to report on key plans, including Banyule’s State of the Environment Report, included in this report (i.e. indicator 2.7 in the previous table). The new works and services reporting system is a database linked to our financial systems that reports on the progress, timeliness and adherence to budgetary measures of all key Council infrastructure projects and initiatives. Council’s Authority financial system provides all financial-based information related to our chart of accounts. Banyule City Council holds externally audited certification in the areas of quality, the environment and safety. This certification program and associated integrated management system form the foundation of our continuous improvement and best value system. Council successfully maintained certification following an annual surveillance audit held in August 2011 with Council’s current certification body, Global-Mark Pty Ltd. In assessing performance, Council has endeavoured to compare with its targets that were based on best performance achieved in past years for Banyule, along with comparing its 2012 CSS results with the average result for the inner metro group of councils (ie. a group of ‘similar’ Councils). Banyule Council has continued to deliver strong results in most of the measured service categories. Council will continue to strive to achieve the highest standards of performance as reflected in the targets it sets. The indicators provide a balance between performance metrics and satisfaction results. They are used by Council to inform our future decision making and as an opportunity to demonstrate ongoing performance to our Community.

Performance Statement for the Year Ended 30 June 2012

Certification of Performance Statement In our opinion, the accompanying Performance Statement of Banyule City Council in respect to the 2011 – 2012 financial year is presented fairly in accordance with the Local Government Act 1989. The statement outlines the performance targets and measures and actual results for Banyule’s Annual Strategic Activities set out in Council’s 2011 – 2012 Budget documents. As at the date of signing, we are not aware of any circumstances, which would render any particulars in the Statement to be misleading or inaccurate.

COUNCILLOR : STEVEN BRIFFA Dated: Monday, 10 September 2012

COUNCILLOR: JENNY MULHOLLAND Dated: Monday, 10 September 2012

Performance Statement for the Year Ended 30 June 2012

Auditor General Victoria Independent Audit Report

Performance Statement for the Year Ended 30 June 2012

Auditor General Victoria Independent Audit Report

Glossary ADASS Adult Day Activity Support Service. Advisory Committees The main function of an advisory committee is to assist Council in the consultative process and provide valuable information to support the decision making of Council. Each year Council appoints Councillor representatives to a number of advisory committees. Their role in relation to these committees is representation, advocacy and consultation. Auditor General An independent officer of the Parliament, appointed under legislation, to examine and report to Parliament and the community, on the efficient and effective management of public sector resources, and provide assurance on the financial integrity of Victoria’s system of government. Best Value State Government legislation that requires councils to review all their services and adopt service delivery models that are the best on offer, to meet the needs of their community. BPi Banyule BPi is a well-established building permit provider to the large volume home builders of Victoria. CAATS Computer assisted audit techniques – computer programs to read city databases to assess correctness. CALD Culturally and linguistically diverse. Capital Works Work undertaken on Council-owned assets including new works, expansions, upgrades and renewal or disposal. CEO Chief Executive Officer City Plan A document guiding Council’s activities for a four-year period. Continuous Improvement (CIP) The process of ensuring that review and improvement practices are built into operational activities. Corporate Governance Taking responsibility for the economic and ethical performance of the municipality, the underlying principles of which are openness, inclusion, integrity and accountability. Governance differs from the everyday management of affairs, in that it identifies the strategic directions for the organisation and implements the controls and checks, which enable the governing body to measure management’s performance. Council Asset An asset is a physical component of a facility that has value, enables a service to be provided and has an economic life greater than 12 months. Financial Year The period of 12 months beginning on 1 July and ending on 30 June the following year.

Glossary

HACC Home and Community Care Services. HRIS The Human Resource Information System (HRIS) will be the key Human Resource system for Banyule City Council. It will enable the HR team, directors and managers as well as individual staff members, to plan and manage all HR related tasks and functions. Infrastructure The physical ’skeleton’ required to enable the community to be connected and operational. This includes roads, drains, footpaths and public open spaces as well as public facilities and buildings. Internal Audit An independent appraisal function to examine and evaluate Council’s financial, management and internal control systems. MAV Municipal Association of Victoria: the peak representative and lobbying body for Victoria’s 79 councils. PAG Planned Activity Group: social groups for frail older adults that provide an opportunity to meet and enjoy the company of others in a supported group situation.

Sustainability Meeting the needs of the present community without compromising the ability of future generations to meet their own needs. A sustainable community seeks to protect and enhance the environment, meet social needs and promote economic success. A sustainable organisation integrates economic, environmental and social considerations into the heart and soul of its business. Targets Each year the Council sets indicators to measure performance against the City Plan. Each of these indicators also has a targeted level of performance. It is expected that this level is met or exceeded throughout the year. VERS The Victorian Electronic Records Strategy, or VERS, has been developed by Public Record Office Victoria (PROV) as Victoria's world-leading solution to the challenges of long-term preservation of electronic records. VLGA Victorian Local Governance Association: a representative body of community leaders and local governments working to build and strengthen communities. VMBSG Victorian Municipal Building Surveyors Group. Wards The geographical area of Banyule is broken into seven sections named wards. Each ward has an elected representative.

Banyule City Council Financial Statements for the Year Ended 30 June 2012

Financial Statements for the Year Ended 30 June 2012 Contents

Page No

Financial Statements Comprehensive Income Statement Balance Sheet Statement of Changes in Equity Cash Flow Statement

97 98 99 100

Notes to the Financial Statements Note 1 Significant accounting policies Note 2 General rates Note 3 Special rates and charges Note 4 Interest on rates and special rates and charges Note 5 Grants Note 6 Statutory fees and fines Note 7 User fees and charges Note 8 Interest income Note 9 Rental income Note 10 Contributions Note 11 Net gain on disposal of infrastructure, property, plant and equipment Note 12 Other income Note 13 Increase in share of net assets of associates Note 14 Employee benefits Note 15 Materials, contracts and services Note 16 Utility charges Note 17 Depreciation expense Note 18 Donations expenditure Note 19 Finance costs Note 20 Other expenses Note 21 Decrease in share of net assets of associates Note 22 Auditorsâ&#x20AC;&#x2122; remuneration Note 23 Cash and cash equivalents Note 24 Trade and other receivables Note 25 Inventories Note 26 Non-current assets classified as held for sale Note 27 Other assets Note 28 Investments Note 29 Infrastructure, property, plant and equipment Note 30 Trade and other payables Note 31 Provisions Note 32 Interest bearing loans and borrowings Note 33 Trust funds and deposits Note 34 Reserves Note 35 Reconciliation of cash flows from operating activities to surplus/(deficit) Note 36 Reconciliation of cash Note 37 Financing arrangements Note 38 Restricted assets Note 39 Superannuation Note 40 Contractual commitments Note 41 Operating leases Note 42 Contingent liabilities Note 43 Financial ratios Note 44 Financial instruments Note 45 Related party transactions Note 46 Events occurring after balance date Note 47 Greensborough Project Note 48 Functions

101 115 115 115 116 121 121 121 121 121 122 122 122 122 122 123 123 123 123 123 124 124 124 124 125 125 125 125 126 132 133 134 135 136 137 137 137 138 139 141 142 143 144 146 154 156 156 157

Certification of Financial Statements

159

Audit Report â&#x20AC;&#x201C; Financial Statements and Standard Statements

160

Comprehensive Income Statement FOR THE YEAR ENDED 30 JUNE 2012

INCOME General rates Special rates and charges Interest on rates and special rates and charges Grants - recurrent Grants - non-recurrent Statutory fees and fines User fees and charges Interest income Rental income Contributions Net gain on disposal of infrastructure, property, plant and equipment Other income Increase in share of net assets of associates accounted for by the equity method

Note

30/6/12 $ â&#x20AC;&#x2DC;000

30/6/11 $ â&#x20AC;&#x2DC;000

2 3 4 5 5 6 7 8 9 10

63,325 828 347 13,110 4,325 7,119 15,380 4,193 1,780 2,436

55.4 0.7 0.3 11.5 3.8 6.2 13.5 3.7 1.6 2.1

59,471 515 362 12,606 3,343 8,127 14,068 4,906 1,874 2,364

52.5 0.5 0.3 11.1 3.0 7.2 12.4 4.3 1.7 2.1

11 12

876 266

0.8 0.2

5,459 89

4.8 0.1

273 114,258

0.2 100.0

41 113,225

0.0 100.0

14 15 16 17 18 19 20

59,890 32,141 2,466 12,148 573 1,118 8,544

51.2 27.5 2.1 10.4 0.5 1.0 7.3

48,001 32,115 2,214 12,005 594 1,966 9,169

45.2 30.2 2.1 11.3 0.6 1.8 8.6

46 116,926

0.0 100.0

226 106,290

0.2 100.0

TOTAL INCOME EXPENSES Employee benefits Materials, contracts and services Utility charges Depreciation Donations Finance costs Other expenses

Decrease in share of net assets of associates accounted for by the equity method

TOTAL EXPENSES (DEFICIT)/SURPLUS Other Comprehensive Income Increment on revaluation of infrastructure and property assets Decrement on revaluation of property assets Impairment loss on freehold buildings COMPREHENSIVE RESULT

29(i) 29(i) 29(i)

(2,668)

6,935

82,248 (82) 79,498

(247) 6,688

The above Comprehensive Income Statement should be read in conjunction with the accompanying notes.

Balance Sheet AS AT 30 JUNE 2012 Note

30/6/12 $ ‘000

30/6/11 $ ‘000

CURRENT ASSETS Cash and cash equivalents Investments Trade and other receivables Inventories Non-current assets classified as held for sale Other assets TOTAL CURRENT ASSETS

23 28 24 25 26 27

57,513 3,741 5,896 45 3,164 1,243 71,602

62,210 20,131 6,115 40 2,000 1,275 91,771

NON-CURRENT ASSETS Trade and other receivables Investments Infrastructure, property, plant and equipment TOTAL NON-CURRENT ASSETS

24 28 29

716 3,539 1,208,113 1,212,368

580 3,312 1,095,411 1,099,303

1,283,970

1,191,074

TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Provisions Interest bearing loans and borrowings Trust funds and deposits TOTAL CURRENT LIABILITIES

30 31 32 33

13,179 11,210 986 1,060 26,435

10,018 10,560 904 870 22,352

NON-CURRENT LIABILITIES Trade and other payables Provisions Interest bearing loans and borrowings Trust funds and deposits TOTAL NON-CURRENT LIABILITIES

30 31 32 33

10,213 348 31,736 332 42,629

250 32,722 343 33,315

69,064

55,667

1,214,906

1,135,407

406,152 808,754

406,363 729,044

1,214,906

1,135,407

TOTAL LIABILITIES NET ASSETS Represented by: EQUITY Accumulated surplus Reserves

TOTAL EQUITY The above Balance Sheet should be read in conjunction with the accompanying notes.

Statement of Changes in Equity FOR THE YEAR ENDED 30 JUNE 2012 Note ACCUMULATED SURPLUS Balance at beginning of the financial year (Deficit)/Surplus for the year Transfer to asset replacement reserves Transfer from asset replacement reserves Transfer from revaluation reserve

34 34

BALANCE AT END OF THE FINANCIAL YEAR ASSET REPLACEMENT RESERVES Balance at beginning of the financial year

30/6/12 $ â&#x20AC;&#x2DC;000

30/6/11 $ â&#x20AC;&#x2DC;000

406,363

401,579

(2,668) (11,132) 11,584 2,005

6,935 (11,435) 9,284 -

406,152

406,363

22,194

20,043 (9,284) 11,435

Amount transferred to accumulated surplus Amount transferred from accumulated surplus

34 34

(11,584) 11,132

Balance at end of the financial year

21,742

22,194

706,850

710,174

36,722 677 3,906

34,561 6,383

(306)

(2,005)

(3,018)

(82)

(a),34

787,012

706,850

808,754

729,044

1,214,906

1,135,407

127,781 2,072 56,840

91,059 1,395 52,934

530,051 69,514

497,495 63,213

283 471

ASSET REVALUATION RESERVE Balance at beginning of the financial year Amount transferred as a result of revaluing assets: Infrastructure - Roads and streets - Bridges, medians and local area traffic management - Drainage Property - Freehold land - Freehold buildings Amount transferred as a result of selling assets: Property - Freehold land Impairment losses on revalued assets: - Freehold buildings Balance at end of the financial year TOTAL RESERVES TOTAL EQUITY (a) The asset revaluation reserve holds balances for the following asset classes. Infrastructure - Roads and streets - Bridges, medians and local area traffic management - Drainage Property - Freehold land - Freehold buildings Other - Art collection and heritage - Parks and gardens

787,012 The above Statement of Changes in Equity should be read in conjunction with the accompanying notes. 99

706,850

Cash Flow Statement FOR THE YEAR ENDED 30 JUNE 2012 Note CASH FLOWS FROM OPERATING ACTIVITIES Rates Grants Statutory fees and fines User fees and charges Interest received Rent Other receipts Payments to employees Payments to suppliers Other payments

30/6/12 $ ‘000

30/6/11 $ ‘000

64,133 17,848 7,339 15,538 4,798 1,781 1,866 (48,032) (30,826) (10,817)

59,348 17,801 7,856 14,011 4,916 2,019 3,821 (47,274) (34,113) (11,977)

NET CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES

23,628

16,408

CASH FLOWS FROM INVESTING ACTIVITIES Payments for property, plant and equipment Payments for infrastructure assets Proceeds from sale of property, plant and equipment Net (purchases)/redemption of investments

29 29 11 28

(41,132) (5,421) 3,674 16,390

(23,495) (1,389) 6,931 2,869

(26,489)

(15,084)

NET CASH PROVIDED BY/(USED IN) INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES Trust funds and deposits – net proceeds Finance costs – interest on loans and borrowings Repayment of interest bearing loans and borrowings NET CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES

179 (1,111) (904)

(32) (1,966) (843)

(1,836)

(2,841)

NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS

(4,697)

(1,517)

62,210

63,727

57,513

62,210

Cash and cash equivalents at the beginning of the financial year CASH AND CASH EQUIVALENTS AT THE END OF THE FINANCIAL YEAR Restrictions on cash assets

23,36 38

The above Cash Flow Statement should be read in conjunction with the accompanying notes.

100

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 1.

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

The significant policies which have been adopted in the preparation of these Financial Statements are: (i)

Basis of Accounting Banyule City Council was established by an Order of the Governor in Council on 14 December 1994 and is a Body Corporate. This financial report is a general purpose financial report that consists of a Comprehensive Income Statement, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and notes accompanying these financial statements. This general purpose financial report has been prepared to comply with the provisions of the Local Government Act 1989, Local Government (Finance and Reporting) Regulations 2004, applicable Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board. The Financial Report has been prepared on the accrual and going concern basis under the historical cost conventions except where specifically stated in:  Note 1 (iv) (a): Recognition and measurement of assets  Note 1 (iv) (b): Valuation of assets  Note 1 (iv) (e): Impairment of assets  Note 1 (viii): Accounting for investments in associates  Note 1 (xv): Non-current assets held for sale  Note 1 (xvi): Investment property  Note 1 (xx): Financial guarantees Unless otherwise stated, the accounting policies adopted for the reporting period are consistent with those of the previous reporting period. Where appropriate, comparative figures have been amended to accord with current presentation, and disclosure has been made of any material changes to comparatives. All funds through which the Council controls resources to carry on its functions have been included in the Financial Statements forming part of this financial report. For year ended 30 June 2011, the Bellfield Community Centre Committee of Management’s accounts were not included in these accounts based on their low level of materiality. For year ended 30 June 2012, Bellfield Community Centre is no longer a Committee of Management, thus their funds have not been included in Council’s Financial Statements. The figures presented in all the Statements and the notes to the Financial Statements are expressed as thousands of dollars when indicated by “$’000”. Otherwise, the figures are exact to the nearest one dollar.

101

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 1.

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont)

(ii)

Revenue Recognition Rates, Grants, Donations and Contributions For the basis of rates calculation, Council uses Capital Improved Value (CIV) as the basis of valuation of all properties within the municipality. The Capital Improved Value of a property is the value of the land and dwellings and improvements. The valuation base used to calculate general rates for 2011/2012 was $27,730,977,300 ($27,540,254,700 for 2010/2011). The rate in the CIV dollars was:- Residential improved - Residential vacant - Commercial improved and industrial improved - Commercial vacant and industrial vacant - Non-rateable land - Municipal Charge on rateable assessments - Cultural and recreational at declared amounts

2011/2012 0.221807 cents 0.299439 cents 0.277259 cents 0.388162 cents No Charge $43.43 Same method used

2010/2011 0.209746 cents 0.283157 cents 0.262183 cents 0.367056 cents No Charge $35.78 Same method used

A revaluation of land for rating purposes within the municipality was done on 1 January 2010 and the valuation first applied in the rating period which commenced on 1 July 2010. The date of the most recent revaluation of land for rating purposes within the municipality was 1 January 2012 and the valuation will be first applied in the rating year commencing 1 July 2012. Rates, grants, donations and other contributions are recognised as revenues when the Council obtains control over the assets comprising the receipts. Control over assets acquired from rates is obtained upon the adoption of Council of its annual budget and fulfilling the statutory process. Control over granted assets is normally obtained upon receipt (or acquittal) or upon prior notification that a grant has been secured. A provision for doubtful debts on rates has not been established as unpaid rates represent a charge against the rateable property that will be recovered when the property is next sold. Unreceived contributions over which the Council has control are recognised as receivables. Where grants recognised as revenues during the financial year were obtained on the condition that they be expended in a particular manner or used over a particular period, and those conditions were undischarged at balance date, the unused grant is disclosed in Note 5. That note also discloses the amount of unused grant recognised as revenue in prior years that was expended on Councilâ&#x20AC;&#x2122;s operations during the current year. Income is recognised when the Council obtains control of the contribution or the right to receive the contribution, it is probable that the economic benefits comprising the contribution will flow to the Council and the amount of the contribution can be measured reliably. A liability is recognised in respect of revenue that is reciprocal in nature to the extent that the requisite service has not been provided at balance date.

102

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 1.

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont)

(ii)

Revenue Recognition (cont) Special Rates and Charges Income from construction special rates and special charges is recognised at the commencement of each scheme. Income from shopping centre special rates and charges schemes is recognised on a yearly basis, for the length of each scheme, as the schemes run on a year by year basis. User Fees and Fines User fees and fines (including parking fees and fines) are recognised as revenue when the service has been provided, the payment is received, or when the penalty has been applied, whichever first occurs. A provision for doubtful debts is recognised when collection in full is no longer probable. Sale of Infrastructure, Property, Plant and Equipment The profit or loss on sale of an asset is determined when control of the asset has irrevocably passed to the buyer. Interest and Rents Interest and rents are recognised as revenue on a proportional basis when the payment is due, the value of the payment is notified, or the payment is received, whichever first occurs. Dividends Dividend revenue is recognised when the Councilâ&#x20AC;&#x2122;s right to receive payment is established.

(iii)

Inventories Inventories held for distribution are measured at cost or weighted average cost, adjusted when applicable, for any loss of service potential.

(iv)

Infrastructure, Property, Plant and Equipment (a) Recognition and Measurement of Assets Items of infrastructure, property, plant and equipment are initially recorded at cost and are depreciated as outlined below. The cost of infrastructure, property, plant and equipment is determined as the fair value of the asset given as consideration plus incidental costs incurred in making the asset ready for use. The cost of infrastructure, property, plant and equipment constructed by Council includes the cost of materials and direct labour. Certain fixed assets shown in Councilâ&#x20AC;&#x2122;s accounts have been revalued as at 30 June 2012. Infrastructure and building assets have been brought to account in the Balance Sheet of Council at cost in the year of acquisition or construction and are subject to depreciation on a straightline basis over their useful lives from the financial year following acquisition. These assets were revalued at 30 June 2012 at their current replacement cost less accumulated depreciation (calculated on a straightline basis). Land assets have been brought to account in the Balance Sheet of Council at cost in the year of acquisition. These assets were revalued at 30 June 2012 at their current replacement cost. Land is not subject to depreciation. Council does not recognise land under roads that it controlled prior to 30 June 2008. Land under roads acquired after 30 June 2008, if material, will be brought to account using the cost basis. For the purpose of infrastructure renewal ratios, infrastructure assets include roads, footpaths, kerb and channel, drainage, parks and gardens and playgrounds.

103

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 1.

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont)

(iv)

Infrastructure, Property, Plant and Equipment (cont) (a) Recognition and Measurement of Assets (cont) All individual items of infrastructure, property, plant and equipment with a value above the threshold limit, as detailed below, are recognised as assets. The threshold limits have not changed from the previous year. Asset Category Roads – surface and pavement Roads – footpath and kerb and channel Roads – bridges, medians and local area traffic management Drainage Parks and gardens Playgrounds Land Buildings Motor vehicles Plant and equipment Furniture and fittings Waste management (Big bins) Works of art

Threshold Limit $ All All 10,000 5,000 1,000 1,000 All 5,000 All 1,000 5,000 10,000 All

(b) Valuation of Assets Infrastructure and property are revalued at the 30 June in the year of each general biennial revaluation of property within the municipality and are assessed each year to ensure their values don’t materially vary from their current values. Any revaluation increase is credited to an asset revaluation reserve except that, where the increase reverses a decrease previously recognised as an expense, it is recognised as revenue for the financial year. Any revaluation decrease is recognised as an expense except that, where the decrease reverses a revaluation increase previously credited to, and still included in the balance of the asset revaluation reserve, it is debited to the revaluation reserve. The Financial Statements for the Year Ended 30 June 2012 reflect the revaluation of assets that occurred on 30 June 2012. The next revaluation is due to be reflected in the Financial Statements for year ending 30 June 2014. Council’s Valuer’s valuation, in the case of land and buildings is determined in accordance with the Valuation of Land Act 1960. It is calculated using market value, as a fair value, based on existing use. In the case of drainage, roads, streets and bridges assets the valuation represents an estimate of written down current replacement costs determined by reference to engineering construction plans and Melbourne Water base maps after taking into account construction costs written down for the current condition of the assets and the impact of any economic or technical obsolescence. Parks and gardens assets, playgrounds, motor vehicles, plant and equipment, furniture and fittings, art collection assets and waste management big bins are valued at cost.

104

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 1.

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont)

(iv)

Infrastructure, Property, Plant and Equipment (cont) (c) Work in Progress Any work in progress at the end of a financial year, is identified and recorded as a non-current asset in the Balance Sheet. Upon completion of each project, the value of work in progress will be transferred to the appropriate non-current depreciable asset class within infrastructure, property plant and equipment of the Balance Sheet and will be subject to appropriate depreciation charges thereafter. (d) Depreciation of Non-current Assets All non-current assets having a limited useful life are systematically depreciated over a period of time in a manner which reflects the useful life of the asset to Council. Land is not a depreciable asset. Council’s art collection assets are not considered depreciable. Depreciation of all assets is provided using the straightline basis with rates that are reviewed each reporting period. The depreciation rates have not changed from the previous year. Asset Category Roads, streets and bridges  Roads – seals  Roads – sub-structure  Bridges  Footpaths  Kerb, channel and medians Drainage Parks and gardens Playgrounds Buildings Motor vehicles Plant and equipment Furniture and fittings Waste management big bins

Depreciation Rate %

Useful Life Years

2.50 .66 .66 1.33 1.18 – 1.42 1 4 – 20 4 1 15 4 – 33.33 5 – 10 10

40 150 150 75 85 – 70 100 25 – 5 25 100 6.60 25 – 3 20 – 10 10

(e) Impairment of Assets At each reporting date, the Council reviews the carrying value of its assets to determine whether there is any indication that these assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the assets carrying value. Any excess of the assets’ carrying value over its recoverable amount is expensed to the comprehensive income statement, unless the asset is carried at the revalued amount in which case, the impairment loss is recognised directly against the revaluation surplus in respect of the same class of asset to the extent that the impairment loss does not exceed the amount in the revaluation surplus for that same class of asset.

105

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 1.

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont)

(v)

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

(vi)

Borrowing Costs Borrowing costs are recognised as an expense in the period in which they are incurred, except where they are capitalised as part of a qualifying asset constructed by Council. Except where specific borrowings are obtained for the purpose of specific asset acquisition, the weighted average interest rate applicable to borrowings at balance date is used to determine the borrowing costs to be capitalised. Borrowing costs include interest on bank overdrafts, interest on borrowings and finance lease charges.

(vii)

Cash and Cash Equivalents For purposes of the Cash Flow Statement, cash and cash equivalents include cash on hand, deposits at call and other highly liquid investments with original maturities of three months or less, net of outstanding bank overdrafts.

(viii) Accounting for Investments in Associates Council’s investment in associates is accounted for by the equity method as the Council has the ability to influence rather than control the operations of the entities. The investment is initially recorded at the cost of acquisition and adjusted thereafter for post-acquisition changes in the Council’s share of the net assets of the entities. The Council’s share of the financial result of the entities is recognised in the Comprehensive Income Statement. Council has an equity interest share in the following associates:  43.644% (44.06% in 2011) in the Yarra Plenty Regional Library;  6.94% (7.16% in 2011) in RFK Pty Ltd, trading as Community Chef; and  7.55% (7.55% in 2011) in Regional Kitchen Pty Ltd. The Officer’s valuation is based on the net assets of the associates at 30 June 2012. (ix)

Investments Investments other than investments in associates are measured at cost.

106

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 1.

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont)

(x)

Employee Benefits (a) Wages and Salaries Liabilities for wages and salaries are recognised and are measured as the amount unpaid at the reporting date at current pay rates and include salary oncosts. (b) Annual Leave Annual leave entitlements are accrued on a pro-rata basis in respect of services provided by employees up to the balance date. Annual leave expected to be paid within 12-months is measured at nominal value based on the amount, including appropriate oncosts, expected to be paid when settled. Annual leave expected to be paid later than one year has been measured at the present value of the estimated future cash outflows to be made for these accrued entitlements. Commonwealth bond rates are used for discounting future cash flows. (c) Long Service Leave Long service leave entitlements payable are assessed at balance date having regard to expected employee remuneration rates on settlement, employment related oncosts and other factors including accumulated years of employment, on settlement and experience of employee departure per year of service. Long service leave expected to be paid within 12 months is measured at nominal value based on the amount expected to be paid when settled. Long service leave expected to be paid later than one year has been measured at the present value of the estimated future cash outflows to be made for these accrued entitlements. Commonwealth bond rates are used for discounting future cash flows. (d) Classification of Employee Benefits An employee benefit liability is classified as a current liability if the Council does not have an unconditional right to defer settlement of the liability for at least 12-months after the end of the period. This would include all annual leave and unconditional long service leave entitlements. (e) Superannuation The superannuation expense for the reporting period is the amount of the statutory contribution the Council makes to the superannuation plan which provides benefits to its employees. In addition Council may, periodically be required to contribute to the defined benefits scheme for current and former employees. Details of those arrangements are set out in Note 39.

107

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 1.

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont)

(x)

Employee Benefits (cont) (f) Employee Annual Leave and Long Service Leave Entitlements The provisions for annual leave and long service leave entitlements are classified and calculated as follows: All annual leave and unconditional vested long service leave representing 7 or more years of continuous service is: 



disclosed in accordance with AASB 101, as a current liability even where Council does not expect to settle the liability within 12 months as it will not have the unconditional right to defer the settlement of the entitlement should an employee take leave within 12 months; measured at: - nominal value under AASB 119 where a component of this current liability is expected to fall due within 12 months after the end of the period; and - present value under AASB 119 where Council does not expect to settle a component of this current liability within 12 months.

Long service leave representing less than 7 years of continuous service is:   (xi)

disclosed in accordance with AASB 101 as a non-current liability; and measured at present value under AASB 119 as Council does not expect to settle this non-current liability within 12-months.

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

(xii) Allocation between Current and Non-Current In the determination of whether an asset or liability is current or non-current, consideration is given to the time when each asset or liability is expected to be settled. The asset or liability is classified as current if it is expected to be settled within the next 12 months, being the Council’s operational cycle, or if the Council does not have an unconditional right to defer settlement of a liability for at least 12 months after the reporting date. (xiii) Website Costs Costs in relation to websites are charged as an expense in the period in which they are incurred. (xiv) Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the balance sheet are shown inclusive of GST. Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.

108

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 1.

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont)

(xv)

Non-Current Assets Held for Sale A non-current asset held for sale is measured at the lower of its carrying amount and fair value less costs to sell and are not subject to depreciation. Non-current assets and related liabilities assets are treated as current and classified as held for sale if their carrying amount will be recovered through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the assetâ&#x20AC;&#x2122;s sale is expected to be completed within 12 months from the date of classification.

(xvi) Investment Property Investment property, if any, is held to generate long-term rental yields. Investment property is measured initially at cost, including transaction costs. Costs incurred subsequent to initial acquisition are capitalised when it is probable that future economic benefit in excess of the originally assessed performance of the asset will flow to the Council. Subsequent to initial recognition at cost, investment property is carried at fair value, determined annually by a valuer. Changes to fair value are recorded in the Comprehensive Income Statement in the period that they arise. Rental income from the leasing of investment properties is recognised in the Comprehensive Income Statement, when invoiced, over the lease term. (xvii) Deposits Held Amounts received as deposits and retention amounts controlled by Council are recognised as Deposits Held until they are returned or forfeited. (xviii) Contingent Assets and Contingent Liabilities and Commitments Contingent assets (if any) and contingent liabilities are not recognised in the Balance Sheet, but are disclosed by way of a Note (Note 42) and, if quantifiable, are measured at nominal value. Contingent assets and liabilities are presented inclusive of GST receivable or payable respectively. Commitments are not recognised in the Balance Sheet. Commitments are disclosed at their nominal value and inclusive of the GST payable (Notes 40 and 41). (xix) Interest Bearing Loans and Borrowings Interest Bearing Loans and Borrowings are recognised in the Balance Sheet at the time the loan is taken out and is recognised at the amount of the loan. Loans are recognised as current for the amount to be repaid within the next financial year. The amount to be repaid in subsequent financial years is recognised as non-current. (xx) Financial Guarantees Financial Guarantee Contracts are recognised as a liability at the time the guarantee is issued. The liability is initially measured at fair value and if there is material increase in the likelihood that the guarantee may have to be exercised, at the higher of the amount determined in accordance with AASB 137 Provisions, Contingent Liabilities and Contingent Assets and the amount initially recognised less cumulative amortisation, where appropriate. In the determination of fair value, consideration is given to factors including the probability of default by the guaranteed party and the likely loss to Council in the event of default. (xxi) Financial Assets Managed funds, if any, are valued at fair value, being market value, at balance date. Any unrealised gains and losses on holdings at balance date are recognised as either a revenue or expense. 109

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 1.

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont)

(xxii) Change in Accounting Policies There were no changes to accounting policies during the current year. (xxiii) Pending Accounting Standards The following Australian Accounting Standards have been issued or amended and are applicable to the Council but are not yet effective. They have not been adopted in preparation of the financial statements at reporting date. Standard/ Interpretation

Summary

AASB 9: Financial Instruments and AASB 2009-11: Amendments to Australian Accounting Standards arising from AASB 9 (AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 121, 127, 128, 131, 132, 136, 139, 1023 & 1038 and Interpretations 10 & 12)

These standards are applicable retrospectively and amend the classification and measurement of financial assets. Council has not yet determined the potential impact on the financial statements. Specific changes include:     



AASB 9 Financial Instruments

Application for Annual Reporting Periods Beginning Applicable for annual reporting periods commencing on or after 1 January 2013.

Impact on Local Government Financial Statements These changes are expected to provide some simplification in the accounting for and disclosure of financial instruments.

1 January 2013

Detail of impact is still being considered.

Simplifying the classifications of financial assets into those carried at amortised cost and those carried at fair value; Removing the tainting rules associated with held-to-maturity assets; Simplifying the requirements for embedded derivatives; Removing the requirements to separate and fair value embedded derivatives for financial assets carried at amortised cost; Allowing an irrevocable election on initial recognition to present gains and losses on investments in equity instruments that are not held for trading in other comprehensive income. Dividends in respect of these investments that are a return on investment can be recognised in profit or loss and there is no impairment or recycling on disposal of the instrument; and Reclassifying financial assets where there is a change in an entity’s business model as they are initially classified based on: (a) the objective of the entity’s business model for managing the financial assets; and (b) the characteristics of the contractual cash flows.

This standard simplifies requirements for the classification and measurement of financial assets resulting from Phase 1 of the IASB’s project to replace IAS 39 Financial Instruments: Recognition and Measurement (AASB 139 Financial Instruments: Recognition and Measurement).

110

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 1.

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont)

(xxiii) Pending Accounting Standards (cont) Standard/ Interpretation

Summary

AASB 12 Disclosure Interests in Other entities

AASB 13 Measurement

Fair

Application for Annual Reporting Periods Beginning 1 January 2013

Impact on Local Government Financial Statements Not-for-profit entities are not permitted to apply this Standard prior to the mandatory application date. The AASB is assessing the applicability of principles in AASB 12 in a notfor-profit context. As such, impact will be assessed after the AASB’s deliberation.

This Standard requires disclosure of information that enables users of financial statements to evaluate the nature of, and risks associated with, interests in other entities and the effects of those interests on the financial statements. This Standard replaces the disclosure requirements in AASB 127 and AASB 131.

Value

This Standard outlines the requirements for measuring the fair value of assets and liabilities and replaces the existing fair value definition and guidance in other AASs. AASB 13 includes a ‘fair value hierarchy’ which ranks the valuation technique inputs into three levels using unadjusted quoted prices in active markets for identical assets or liabilities; other observable inputs; and unobservable inputs.

1 January 2013

Disclosure for fair value measurements using unobservable inputs are relatively onerous compared to disclosure for fair value measurements using observable inputs. Consequently, the Standard may increase the disclosures for public sector entities that have assets measured using depreciated replacement cost.

In this revised Standard for defined benefit superannuation plans, there is a change to the methodology in the calculation of superannuation expenses, in particular there is now a change in the split between superannuation interest expense (classified as transactions) and actuarial gains and losses (classified as ‘Other economic flows – other movements in equity’) reported on the comprehensive operating statement.

1 January 2013

Not-for-profit entities are not permitted to apply this Standard prior to the mandatory application date.

AASB 119 Employee Benefits

111

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 1.

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont)

(xxiii) Pending Accounting Standards (cont) Standard/ Interpretation

Summary

Application for Annual Reporting Periods Beginning 1 January 2013

Impact on Local Government Financial Statements Not-for-profit entities are not permitted to apply this Standard prior to the mandatory application date. The AASB is assessing the applicability of principles in AASB 127 in a not-for-profit context. As such, impact will be assessed after the AASBâ&#x20AC;&#x2122;s deliberation.

AASB 127 Separate Financial Statements

This revised Standard prescribes the accounting and disclosure requirements for investments in subsidiaries, joint ventures and associates when an entity prepares separate financial statements.

AASB 128 Investments in Associates and Joint Ventures

This revised Standard sets out the requirements for the application of the equity method when accounting for investments in associates and joint ventures.

1 January 2013

Not-for-profit entities are not permitted to apply this Standard prior to the mandatory application date. The AASB is assessing the applicability of principles in AASB 128 in a not-for-profit context. As Such, impact will be assessed after the AASBâ&#x20AC;&#x2122;s deliberation.

AASB 2009-11 Amendments to Australian Accounting Standards arising from AASB 9 (AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 121, 127, 128, 131, 132, 136, 139, 1023 and 1038 and Interpretations 10 and 12)

This Standard gives effect to consequential changes arising from the issuance of AASB 9.

1 January 2013

No significant impact is expected from these amendments.

112

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 1.

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont)

(xxiii) Pending Accounting Standards (cont) Standard/ Interpretation

Summary

Application for Annual Reporting Periods Beginning 1 January 2013

Impact on Local Government Financial Statements No significant impact is expected from these consequential amendments on entity reporting.

AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010) (AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 & 1038 and Interpretations 2, 5, 10, 12, 19 & 127)

These consequential amendments are relation to the introduction of AASB 9.

AASB 2011-4 Amendments to Australian Accounting Standards to Remove Individual Key Management Personnel Disclosure Requirements (AASB 124)

This Standard amends AASB 124 Related Party Disclosures by removing the disclosure requirements in AASB 124 in relation to individual key management personnel (KMP).

1 July 2013

No significant impact is expected from these amendments.

AASB 2011-6 Amendments to Australian Accounting Standards – Extending Relief from Consolidation, the Equity Method and Proportionate Consolidation – Reduced Disclosure Requirements (AASB 127, AASB 128 & AASB 131)

The objective of this Standard is to make amendments to AASB 127 Consolidated and Separate Financial Statements, AASB 128 Investments in Associates and AASB 131 Interests in Joint Ventures to extend the circumstances in which an entity can obtain relief from consolidation, the equity method or proportionate consolidation.

1 July 2013

No material impact is expected.

AASB 2011-7 Amendments to Australian Accounting Standards arising from the Consolidation and Joint Arrangements Standards (AASB 1, 2, 3, 5, 7, 9, 2009-11, 101, 107, 112, 118, 121, 124, 132, 133, 136, 138, 139, 1023 & 1038 and Interpretations 5, 9, 16 & 17)

This Standard outlines consequential changes arising from the issuance of the five ‘new Standards’ to other Standards. For example, references to AASB 127 Consolidated and Separate Financial Statements are amended to AASB 10 Consolidated Financial Statements or AASB 127 Separate Financial Statements, and references to AASB 131 Interests in Joint Ventures are deleted as that Standard has been superseded by AASB 11 and AASB 128 (August 2011).

1 January 2013

No significant impact is expected from these amendments.

AASB 2011-8 Amendments to Australian Accounting Standards arising from AASB 13 (AASB 1, 2, 3, 4, 5, 7, 9, 200911, 2010-7, 101, 102, 108, 110, 116, 117, 118, 119,120, 121, 128, 131, 132, 133, 134, 136, 138, 139, 140, 141, 1004, 1023 & 1038 and Interpretations 2, 4, 12, 13, 14, 17, 19, 131, & 132)

This amending Standard makes consequential changes to a range of Standards and Interpretations arising from the issuance of AASB 13. In particular, this Standard replaces the existing definition and guidance of fair value measurements in other Australian Accounting Standards and Interpretations.

1 January 2013

Disclosures for fair value measurements using unobservable inputs is potentially onerous, and may increase disclosures for assets measured using depreciated replacement cost.

113

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 1.

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont)

(xxiii) Pending Accounting Standards (cont) Standard/ Interpretation

Summary

AASB 2011-9 Amendments to Australian Accounting Standards â&#x20AC;&#x201C; Presentation of Items of Other Comprehensive Income (AASB 1, 5, 7, 101, 112, 120, 121, 132, 133, 134, 1039 & 1049)

The main change resulting from this Standard is a requirement for entities to group items presented in other comprehensive income (OCI) on the basis of whether they are potentially reclassifiable to profit or loss subsequently (relcassification adjustments). These amendments do not remove the option to present profit or loss and other comprehensive income in two statements, nor change the options to present items of OCI either before tax or net of tax.

AASB 2011-10 Amendments to Australian Accounting Standards arising from AASB 119 (September 2011) (AASB 1, AASB 8, AASB 101, AASB 124, AASB 134, AASB 1049 & AASB 2011-8 and Interpretation 14)

This Standard makes consequential changes to a range of other Australian Accounting Standards and Interpretation arising from the issuance of AASB 119 Employee Benefits.

114

Application for Annual Reporting Periods Beginning 1 July 2012

Impact on Local Government Financial Statements No significant impact is expected.

1 January 2013

No significant impact is expected from these amendments.

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 Note 2.

30/6/12 $’000

30/6/11 $’000

GENERAL RATES

Council uses Capital Improved Value as the basis of valuation of all properties within the municipality. The Capital Improved Value of a property is its total value of all land and dwellings and improvements. Residential Commercial Industrial Cultural recreational Supplementary rates and rate adjustments Total general rates

56,636 4,898 1,617 57 117 63,325

53,191 4,620 1,524 53 83 59,471

The date of the latest general revaluation of land for rating purposes within the Municipality was done on 1 January 2012 and the valuation will be first applied in the rating year commencing on 1 July 2012. The date of the previous general revaluation of land for rating purposes within the Municipality was 1 January 2010 and the valuation was first applied in the rating year which commenced on 1 July 2010. These valuations were used in the calculation of rates in the current financial year. 3.

SPECIAL RATES AND CHARGES Special rates and charges – shopping centres Special rates and charges – road construction Total special rates and charges

505 323 828

508 7 515

258 89

358 4

347

362

INTEREST ON RATES and SPECIAL RATES AND CHARGES Interest on rates Interest on special rates and charges Total interest on rates and special rates and charges

115

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 30/6/12 $’000

30/6/11 $’000

Summary of Grants Recurrent Non-recurrent Total grants

13,110 4,325 17,435

12,606 3,343 15,949

Summary of Grants State Government funded grants Federal Government funded grants Other grants Total grants

15,109 2,008 318 17,435

13,810 2,114 25 15,949

116 442 98 180 658 1,535 107 653 101 108 95 577 404 604 156 74 1,064 4,333 (8) 72 410 11,779

109 417 290 216 627 1,521 86 648 102 104 97 498 546 517 147 71 828 3,475 250 187 73 333 11,142

753 240 149 121 1,263

645 464 147 183 1,439

68 68

25 25

13,110

12,606

Note 5.

GRANTS Grants were received in respect of the following:

Recurrent Grants From State Government ADASS aged care respite ADASS planned activity group Children’s services Delivered meals HACC assessment and care management Homecare Immunisation Maternal and child health centres Maternal and child health outreach worker Metro access Neighbourhood renewal Personal care Preschools Respite care School crossing supervisors Vic Roads maintenance and traffic management Victoria Grants Commission – local roads Victoria Grants Commission – unallocated Stormwater management DOI bus stop project Access all abilities Other grants From Federal Government Child day care Family day care Specialist children’s worker Other grants From Other Sources Other grants Total recurrent grants

116

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 Note 5.

30/6/12 $â&#x20AC;&#x2122;000

30/6/11 $â&#x20AC;&#x2122;000

500 2,140 393 75 222 3,330

1,774 610 26 258 2,668

654 51 40 745

131 200 344 675

250 250

4,325

3,343

17,435

15,949

GRANTS (cont) Non-Recurrent Grants From State Government Olympic Village learning hub Greensborough project Sports grounds and pavilions Bike paths Other grants

From Federal Government Stormwater management Bike paths Disability access Regional and local community infrastructure programme Roads to recovery From Other Sources Stormwater management Total non-recurrent grants Total grants

117

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 Note 5.

30/6/12 $’000

30/6/11 $’000

5 8 59 17 10 13 51 65 886 211 1,017 16 11 11 5 1 17 11 1 53 116 2 81 126 40 49 2,882

3 47 39 842 201 5,883 5 5 23 39 25 105 9 31 332 3 2 5,000 13 2 10 60 11 140 229 110 5 13,174

GRANTS (cont) Conditions over Grants: Grants which were recognised as revenue in the previous year/years and were expended during the current year in the manner specified by the grantor were: Banyule road safety strategy Bridges out of poverty Buna Reserve community garden Children Protection Society Cluster management DEECD – equipment grant Elder street pavilion works Good Governance project Victoria Grants Commission – unallocated Victoria Grants Commission – local roads Greensborough project – State Government HACC additional growth funding HACC growth funding Heat wave climate control Indigenous education strategy initiatives program Language services grant Metro access program National early childhood quality framework Neighbourhood renewal Our voice our community Regional and local community infrastructure program Smiles for miles Sportsfield lighting – Banyule Flats Stormwater management plan Teenagers with additional needs Universal access Basketball stadium – contribution Children services – resource kits Food access grant Greensborough project – Federal Government Healthy kids and equipment Heritage study Initiatives grant National bike pathways Olympic Village project RALC cabling works Roads to recovery Warringal park pavilion works Youth Foundations Victoria – West Heidelberg

118

(a) (b) (c) (k)

(l),47 (m) (n)

(h) (o) (p) (q) (i) (j) (e) 47 (f)

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 Note

30/6/12 $’000

30/6/11 $’000

11 3 1,780 435 81 948 26 12 19 500 20 7 25 10 6 979 21 48 13 4,944

5 886 211 977 17 53 2 247 40 51 72 36 10 13 65 16 11 4 2 1 106 2,825

2,062

(10,349)

GRANTS (cont) Conditions over Grants: (cont) Grants which were 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: Banyule road safety strategy Flash mobs – Jets Studio Victoria Grants Commission – unallocated Victoria Grants Commission – local roads Greensborough Bowling Club Greensborough project – State Government Innovative respite – Jets Studios L2P project Metro access program Olympic Village – CIF funding Our voice our community Qualifications upgrade – Joyce Avenue CCC Roads to recovery SHYNE project Smiles for miles Stormwater management plan Teenagers with additional needs Universal access Watsonia train station – improve lighting Children Protection Society Climate change funding Cluster management DEECD – equipment grant Good governance project HACC additional growth funding HACC growth funding Indigenous education strategy initiatives program Language services grant Neighbourhood renewal Regional and local community infrastructure program Net increase/(decrease) in restricted assets resulting from grant revenues for the year.

119

(l),47

(i) (j) (c) (d)

(n) (h) (p) 38

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012

Note

30/6/12 $’000

30/6/11 $ ‘000

(a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) (n) (o) (p) (q) 38

2 5 55 36 36 1 3 1 121 2 262

10 64 36 1 3 51 40 11 1 11 10 81 319

GRANTS (cont) Conditions over Grants: (cont) Grants which were recognised as revenue during previous financial years and have not been spent in the manner specified by the grantor were: Bridges out of poverty Buna Reserve community garden Children Protection Society Climate change funding Food access grant Healthy kids and equipment Interfaith – multicultural grant Language services grant Stormwater management plan Universal access Elder Street pavilion works Greensborough project – State Government Heat wave climate control Indigenous education strategic initiatives program National early childhood quality framework Regional and local community infrastructure program Sportsfield lighting – Banyule Flats Unspent grants from prior years

120

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 Note 6.

3,254 1,303 287 546 2,660 460 148 202 5,188 14 1,318 15,380

3,014 1,259 256 637 2,185 453 158 173 5,011 58 864 14,068

4,140 40 13 4,193

4,856 35 15 4,906

127 1,063 590 1,780

197 1,104 573 1,874

1,256 698 302 180 2,436

1,076 435 561 292 2,364

RENTAL INCOME Recreational facilities rental Residential/commercial rental Recycling centre rental Total rental income

10.

3,594 437 2,267 1,164 313 203 149 8,127

INTEREST INCOME Interest on investments Interest from sporting clubs Other interest Total interest income

2,473 448 2,149 1,269 579 201 7,119

USER FEES AND CHARGES Aquatic Centre fees and charges Child Day Care charges Community buses, halls and events Delivered meals charges Functions Centre charges Home care charges Local laws fees Sports ground rentals income Transfer station tipping fees Valuation fees and charges Other fees and charges Total user fees and charges

30/6/11 $ ‘000

STATUTORY FEES AND FINES Building and Planning permits and fees Food Act and Health registrations Local laws infringements and fines Municipal charge Property valuations Road and footpath reinstatement Others fees and fines Total statutory fees and fines

30/6/12 $’000

CONTRIBUTIONS Cash contributions: Public Open Space – contributions Contributions for new works and services projects Contributions from sporting clubs Other contributions Total contributions

121

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012

11.

Note

30/6/12 $ ‘000

30/6/11 $ ‘000

(a) 29(i)

3,674 2,798 876

6,931 1,472 5,459

178 52 5 31 266

17 22 34 16 89

273 273

41 41

NET GAIN ON DISPOSAL OF INFRASTRUCTURE, PROPERTY, PLANT AND EQUIPMENT Proceeds from sale of assets Less: Written down value of assets sold Total net gain on sale of assets

(a) From sale of land and motor vehicles, (2011 also included sale of buildings). 12.

OTHER INCOME Sale of right-of-ways Sponsorship Equipment sales Other revenue Total other income

13.

INCREASE IN SHARE OF NET ASSETS OF ASSOCIATES Yarra Plenty Regional Library Corporation Total increase in share of net assets of associates

14.

EMPLOYEE BENEFITS Salaries and wages 38,549 36,583 Annual leave and loading 3,476 3,204 Long service leave 1,506 1,155 Superannuation 3,813 3,395 9,117 1,790 Superannuation – additional call (b),39 Workcover 1,150 911 2,279 963 Other oncosts (c) 59,890 48,001 Total employee benefits (b) Council was required to make an additional contribution to Vision Super to meet our obligations in relation to members of the Defined Benefit Plan, payable on 1 July 2013 (2011 additional call was paid in the 2011 financial year). (c) Includes contribution tax on the superannuation additional call referred to in Note (b) $1,608,830 ($316,011 in 2011).

15.

MATERIALS, CONTRACTS AND SERVICES Advertising Auditing services Building and Planning charges and government fees Child care expenses Community program costs Contractor costs General materials and supplies Insurances Plant and motor vehicle operating Printing, stationery and external communications Staff training and equipment Sundry expenses Waste disposal general Other Total materials, contract and services 122

387 171 334 275 832 15,562 3,306 738 2,727 606 585 350 4,953 1,315 32,141

278 155 656 466 880 15,766 3,257 735 2,599 606 528 381 4,521 1,287 32,115

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 Note 16.

30/6/11 $ ‘000

1,247 310 307 602 2,466

1,128 311 171 604 2,214

5,085 1,551 792 175

5,011 1,550 886 170

1,766

1,742

1,929 563 53 234 12,148

1,860 507 45 234 12,005

72 62 140 102 197 573

87 60 118 99 230 594

1,118 1,118

1,966 1,966

258 238 172 433

330 560 141 489

4,556 1,246 1,009 125 507 8,544

3,707 1,158 1,015 155 1,614 9,169

UTILITY CHARGES Gas and electricity Telephone Water Public street lighting Total utility charges

17.

30/6/12 $ ‘000

DEPRECIATION EXPENSE

(a)

Infrastructure - Roads, streets and bridges - Drainage - Parks and gardens - Playgrounds Property - Freehold buildings Plant and equipment - Motor vehicles - Plant and equipment - Furniture and fittings - Waste management Total depreciation (a) Refer also to Note 1(iv)(d) 18.

DONATIONS EXPENDITURE Banyule Housing Support group Banyule Support and Information Community Services grants Volunteers of Banyule Resources Centre Other donations Total donations

19.

FINANCE COSTS Interest - borrowings Total finance costs

20.

OTHER EXPENSES Bad and doubtful debts Operating lease rental Cleansing Department waste disposal Other Contributions - Yarra Plenty Regional Library - Metropolitan Fire and Emergency Services Board - Contributions shopping centres - YMCA - Other contributions Total other expenses

(b)

(b) Includes $690,819 of superannuation – additional call for the Yarra Plenty Regional Library (2011 $ nil). 123

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 Note 21.

30/6/12 $ ‘000

30/6/11 $ ‘000

46 46

226 226

DECREASE IN SHARE OF NET ASSETS OF ASSOCIATES Regional Kitchen Pty Ltd Total decrease in share of net assets of associates

(a) 1(viii)

(a) Regional Kitchen Pty Ltd’s comprehensive result for year ended 30/6/2012 was a deficit and the net assets decreased. Council’s share was $46,000. 22.

AUDITORS’ REMUNERATION Audit fee to conduct external audit – Victorian Auditor General Internal audit fee Fees for minor audits – other external auditors Total auditors’ remuneration

23.

59 111 1 171

55 97 3 155

10 1,694 5,129 50,680 57,513

9 1,452 28,893 31,856 62,210

48,564 8,949 57,513

47,816 14,394 62,210

CASH AND CASH EQUIVALENTS Cash on hand Cash at bank Money market call account Term deposits

Total cash and cash equivalents

Unrestricted assets Restricted assets Total cash and cash equivalents

Users of the Financial Report should refer to Note 38 for details of restrictions on cash assets and Note 40 for details of existing Council financial commitments.

24.

TRADE AND OTHER RECEIVABLES Current Rates debtors Special rates and charges Parking infringement debtors Provision for doubtful debts – parking infringements Other by-laws debtors Provision for doubtful debts – other by-laws Club contribution debtors Other debtors Provision for doubtful debts – other debtors Total current Non-Current Rates debtors Special rates and charges Club contribution debtors Other debtors Total non-current Total trade and other receivables (a) Rates are a charge against ratepayers’ properties. 124

(a)

983 63 1,622 (1,137) 153 (97) 79 4,316 (86) 5,896

1,090 12 1,432 (905) 136 (81) 79 4,443 (91) 6,115

20 279 410 7 716 6,612

17 9 554 580 6,695

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 30/6/12 $ ‘000

30/6/11 $ ‘000

45 45

40 40

3,164 3,164

2,000 2,000

1,243 1,243

1,275 1,275

3,741 3,741

20,131 20,131

(c)

2,213

1,940

(c)

1,317 3,539 7,280

1,363 3,312 23,443

Note 25.

INVENTORIES Inventories held for distribution Total inventories

26.

NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE Council’s valuation Total non-current assets classified as held for sale (a)

27.

(a)

Refer to Note 29(i) for further details.

OTHER ASSETS Current Prepayments Total other assets

28.

INVESTMENTS Current Term deposits Total current

(b)

Non-Current Unlisted shares in MAPS Group Ltd – at cost Investments in associates: - Share of Yarra Plenty Regional Library Corporation – at Officer’s valuation - Share of Regional Kitchen Pty Ltd – at Officer’s valuation Total non-current Total investments

(b) Refer also to Notes 32 and 47. For year-ended 30 June 2011, the main source of the funds is from Council’s borrowings as detailed in Note 32. (c) Investments in associates are accounted for using the equity method and Council takes up its share of the net assets for each associate. Refer also to Policy Note 1(viii) – ‘Accounting for Investments in Associates’. The valuation is made as at 30 June each year. The 2012 valuation is based on draft unaudited Financial Statements (2011 was based on draft unaudited Financial Statements).

125

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 Note 29.

30/6/12 $ ‘000

30/6/11 $ ‘000

123,730 42,999 80,731

94,938 42,489 52,449

1,380,380 252,998 1,127,382

1,343,675 300,713 1,042,962

1,208,113

1,095,411

2,366 2,366

364,621 131,968 232,653

378,308 182,159 196,149

232,653

198,515

45 45

161,186 67,536 93,650

155,032 63,975 91,057

Total drainage

93,650

91,102

Parks and Gardens  works at cost less accumulated depreciation Total parks and gardens

31,029 20,471 10,558

30,257 19,680 10,577

Playgrounds  works at cost less accumulated depreciation Total playgrounds

7,378 2,999 4,379

6,318 2,824 3,494

INFRASTRUCTURE, PROPERTY, PLANT AND EQUIPMENT Summary of Infrastructure, Property, Plant and Equipment  at cost less accumulated depreciation 

at Council’s valuation less accumulated depreciation

Total of Infrastructure, Property, Plant and Equipment

INFRASTRUCTURE: Roads, Streets and Bridges  works at cost less accumulated depreciation  at Council’s valuation of current replacement cost less accumulated depreciation

(b)

Total roads, streets and bridges Drainage  works at cost less accumulated depreciation  at Council’s valuation of current replacement cost less accumulated depreciation

126

(b)

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 Note

30/6/12 $ ‘000

30/6/11 $ ‘000

29. INFRASTRUCTURE, PROPERTY, PLANT AND EQUIPMENT (cont) PROPERTY: Freehold Land  at cost (a) 671,718  at Council’s valuation of market value Total freehold land 671,718

3,587 636,520 640,107

Freehold Buildings  at cost less accumulated depreciation

2,714 2,714

182,855 53,494 129,361

173,815 54,579 119,236

129,361

121,950

PLANT AND EQUIPMENT: Motor Vehicles  at cost less accumulated depreciation Total motor vehicles

17,488 9,608 7,880

16,711 9,092 7,619

Plant and Equipment  at cost less accumulated depreciation Total plant and equipment

6,931 3,390 3,541

7,139 4,648 2,491

Furniture and Fittings  at cost less accumulated depreciation Total furniture and fittings

2,248 2,035 213

2,213 1,983 230

Waste Management  at cost less accumulated depreciation Total waste management

4,974 4,496 478

4,974 4,262 712

1,172 1,172

1,156 1,156

49,768 1,834 551 4 230 123 52,510

17,175 201 65 6 11 17,458

1,208,113

1,095,411



(a)

at Council’s valuation of market value less accumulated depreciation

Total freehold buildings

OTHER: Art collection  at cost Total art collection Work in Progress  buildings at cost  roads at cost  parks and gardens at cost  drainage at cost  furniture and fittings at cost  plant and equipment Total work in progress Total infrastructure, property, plant and equipment 127

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 29. INFRASTRUCTURE, PROPERTY, PLANT AND EQUIPMENT (cont) (a) (b)

At 30 June 2012, Council’s land and buildings were restated to Council’s valuation of fair value based on existing use. The valuations were carried out by Council’s Valuer, Mr P Kemm, A.A.P.I. in accordance with the basis of valuation referred to in Note 1(iv)(b). Valuation of Council’s bridges, median and drainage assets has been determined by the valuation undertaken by Ms Claudia Oqueli, Council’s Asset Engineer – Asset Management. At 30 June 2012, Council’s road assets (excluding bridges and medians) were restated to Council’s valuation of current replacement cost. The valuation of these assets were carried out by Peter Batson, Manager – Asset System Victoria, SMEC Australia Pty Ltd, in accordance with the basis of valuation referred to in Note 1(iv)(b). SMEC Pavement Management system software was used to assist with this process. The valuation is at fair value based on replacement cost, less accumulated depreciation in accordance with the basis of valuation referred to in Note 1(iv)(b).

Expenditure on:   

Infrastructure – roads, streets and bridges, drainage, parks and gardens and playgrounds totalling $3,792,845 ($3,661,285 in 2011) occurred during the year. Properties – land and buildings totalling $3,111,452 ($5,638,098 in 2011) occurred during the year. Plant and Equipment and Other – plant and equipment, motor vehicles, art collection and work in progress $39,740,932 ($17,140,515 in 2011) occurred during the year.

These figures, plus/minus accruals, are disclosed in the Cash Flow Statement under Cash Flows from Investing Activities.

128

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 29. (i)

INFRASTRUCTURE, PROPERTY, PLANT AND EQUIPMENT (cont) Reconciliation Reconciliations of the carrying amounts of each class of infrastructure, property, plant and equipment at the beginning and end of the current financial year are set out below:

2012

Infrastructure Roads, streets and bridges Drainage Parks and gardens Playgrounds Property Freehold land Freehold buildings (b) Plant and Equipment Motor vehicles Plant and equipment Furniture and fittings Waste management Other Art collection Work in progress TOTAL

2011

Infrastructure Roads, streets and bridges Drainage Parks and gardens Playgrounds Property Freehold land Freehold buildings Plant and Equipment Motor vehicles Plant and equipment Furniture and fittings Waste management Other Art collection Work in progress TOTAL

Less Depreciation

Carrying Amount at 30/06/12

$ ‘000

Less WDV of Disposals Plus Impairment Loss $ ‘000

$ ‘000

$‘000

37,398 3,906 -

1,780 187 767 1,060

5,085 1,551 792 175

232,653 93,650 10,558 4,379

(3,164) 294

34,561 6,383

529 2,582

315 82

1,766

671,718 129,361

7,619 2,491 230 712

2,587 1,699 36 -

397 86 -

1,929 563 53 234

7,880 3,541 213 478

1,156 17,458 1,095,411

(351) (3,164) (a)

82,248

16 35,403 46,646

880 (b)

12,148

1,172 52,510 1,208,113

Carrying Amount at 30/06/10 $ ‘000

Transfer Between Classes $ ‘000

Plus Change in Valuations

Plus Additions

Less Depreciation

$ ‘000

Less WDV of Disposals Plus Deduct From Revaluation Reserve $ ‘000

$ ‘000

Carrying Amount at 30/06/11 $ ‘000

201,160 92,607 13,939 -

(3,597) 3,537

2,366 45 1,121 130

5,011 1,550 886 170

198,515 91,102 10,577 3,494

641,854 121,290

(2,000) 657

3,586 2,051

3,333 306

1,742

640,107 121,950

6,722 1,962 196 946

3,770 1,177 79 -

1,013 141 -

1,860 507 45 234

7,619 2,491 230 712

Carrying Amount at 30/06/11

Transfer Between Classes

Plus Change in Valuations

Plus Additions

$ ‘000

198,515 91,102 10,577 3,494

45 6 6 -

640,107 121,950

1,149 5,947 1,087,772

7 1,156 (597) 12,108 17,458 (2,000) 26,440 4,796 12,005 1,095,411 (a) (c) (a) $3,164,000 ($2,000,000 in 2011) of land was transferred to non-current assets classified as held for sale (refer also to Note 26). (b) $82,280 of written down value of freehold buildings, as impairment loss, was deducted from revaluation reserve. (c) $3,077,000 of land and buildings was deducted from Revaluation Reserve, the written down value of asset disposals was $1,472,000 and $246,686 revaluation of buildings was also deducted from Revaluation Reserve, totalling $4,795,868. 129

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 Note

30/6/12 $ â&#x20AC;&#x2DC;000

29.

INFRASTRUCTURE, PROPERTY, PLANT AND EQUIPMENT (cont)

(ii)

Capital Expenditure Capital expenditure categories: Infrastructure Roads, streets and bridges Drainage Parks and gardens Playgrounds Property Freehold land Freehold buildings Plant and equipment Motor vehicles Plant and equipment Furniture and fittings Other Art collection and heritage Work in progress Total capital expenditure

1,780 187 767 1,060

2,366 45 1,121 130

529 2,582

3,586 2,051

2,587 1,699 36

3,770 1,177 79

16 35,403 46,646

7 12,108 26,440

770 537 21 961 2,289

257 3,953 5 58 4,273

(a)

2,561 1,577 4,281 32,828 41,247

2,523 282 5,002 11,805 19,612

(b)

463 997 20 1,630 3,110

473 328 14 87 902

(c)

408 1,074 5 166 1,653

46,646

26,440

Represented by: Capital expenditure new Infrastructure Property Plant and equipment Other Total capital expenditure new Capital expenditure renewal Infrastructure Property Plant and equipment Other Total capital expenditure renewal Capital expenditure upgrade Infrastructure Property Plant and equipment Other Total capital expenditure upgrade Capital expenditure expansion Infrastructure Property Plant and equipment Other Total capital expenditure expansion Total capital expenditure

130

30/6/11 $ â&#x20AC;&#x2DC;000

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 29.

INFRASTRUCTURE, PROPERTY, PLANT AND EQUIPMENT (cont)

(ii)

Capital Expenditure (cont)

(a)

Renewal Expenditure on an existing asset which returns the service potential or the life of the asset up to that which it had originally. It periodically requires expenditure, relatively large (material) in value compared with the value of the components or sub-components of the asset being renewed. As it reinstates existing service potential, it has no impact on revenue, but may reduce future operating and maintenance expenditure if completed at the optimum time.

(b)

Upgrade Expenditure which enhances an existing asset to provide a higher level of service or expenditure that will increase the life of the asset beyond that which it had originally. Upgrade expenditure is discretional and often does not result in additional revenue unless direct user charges apply. It will increase operating and maintenance expenditure in the future because of the increase in the Council’s asset base.

(c)

Expansion Expenditure which extends an existing asset, at the same standard as is currently enjoyed by residents, to a new group of users. It is discretional expenditure which increases future operating and maintenance costs, because it increases Council’s asset base, but may be associated with additional revenue from the new user group. Note

30/6/12 $ ‘000

30/6/11 $ ‘000

29(i)

46,646 82,248 (12,148)

26,440 (12,005)

29(i) 29(i) 29(i)

(798) (82) (3,164)

(4,796) (2,000)

Infrastructure, property, plant and equipment and other assets movement The movement between the previous year and the current year in infrastructure, property, plant and equipment and other assets as shown in the Balance Sheet links to the net of the following items: Total capital works Asset revaluation movement Depreciation and amortisation Written down value and write back of revaluation of assets sold. Impairment Loss Transfer to non-current assets held for sale Net movement in infrastructure, property, plant and equipment and other assets.

131

112,702

7,639

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 30/6/12 $ ‘000

30/6/11 $ ‘000

Current Trade creditors Accruals Total current

9,278 3,901 13,179

7,709 2,309 10,018

Non-current Accruals Total non-current Total trade and other payables

10,213 10,213 23,392

10,018

Annual Leave $ ‘000

Long Service Leave $ ‘000

Total $ ‘000

3,658 3,504 (3,432)

7,152 739 (942)

Note 30.

31.

TRADE AND OTHER PAYABLES

PROVISIONS

2012 Balance at beginning of the financial year Additional provisions Amounts used Increase in the discounted amount arising because of time and the effect of any change in the discount rate Balance at the end of the financial year 2011 Balance at beginning of the financial year Additional provisions Amounts used Increase in the discounted amount arising because of time and the effect of any change in the discount rate Balance at the end of the financial year

132

10,810 4,243 (4,374)

857

879

3,752

7,806

11,558

3,509 3,289 (3,155)

6,667 785 (915)

10,176 4,074 (4,070)

615

630

3,658

7,152

10,810

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 30/6/12 $ â&#x20AC;&#x2DC;000

30/6/11 $ â&#x20AC;&#x2DC;000

3,565 5,014

3,519 4,538

Long term employee benefits - Annual leave - Long Service leave Total current

187 2,444 11,210

139 2,364 10,560

Non-current Long service leave entitlements representing: 7 or more years of continuous service Total non-current Total provisions

348 348 11,558

250 250 10,810

3,752 7,806 11,558

3,658 7,152 10,810

Note 31.

PROVISIONS (cont) Current Annual leave entitlements and Long service leave entitlements representing 7 or more years of continuous service: Short term employee benefits - Annual leave - Long Service leave

1(x)(f)

PROVISIONS SUMMARY Annual leave Long service leave Total provisions

The following assumptions were used in measuring the present value of employee benefits: - Weighted average increase in employee costs 3.00% (4.00% in 2011) - Discount rates between 1 year to 16 years within the range of 2.87% to 3.25% (4.70% to 5.31% in 2011) - Settlement period between 1 year to 16 years within the range of 2.00% to 20.00% (2.00% to 20.00% in 2011)

133

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012

32.

Note

30/6/12 $ ‘000

30/6/11 $ ‘000

(a)

986 986

904 904

(a)

31,736 31,736 32,722

32,722 32,722 33,626

INTEREST BEARING LOANS AND BORROWINGS Current Term loan – secured Total current Non-Current Term loan – secured Total non-current Total interest bearing loans and borrowings

(a) The interest bearing loans are secured by a deed of charge over Council rates The maturity profile of Council’s borrowings is: Not later than one year Later than one year, but not later than five years Later than five years Total interest bearing loans and borrowings

986 4,808 26,928 32,722

904 4,445 28,277 33,626

1,473 26,968 4,281 32,722

1,627 27,346 4,653 33,626

32(i). PURPOSE OF INTEREST BEARING LOANS AND BORROWINGS Capital works Greensborough project Strategic properties Total interest bearing loans and borrowings

134

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 Note 33.

30/6/12 $ â&#x20AC;&#x2DC;000

30/6/11 $ â&#x20AC;&#x2DC;000

TRUST FUNDS AND DEPOSITS Current Trust Funds Subdivision street trees Streeton Views community facilities Other trust funds Deposits held Tender contracts Function deposits Sub-divisions Road opening permits Sundry Other deposits Total current

15 47 41

15 47 37

255 181 27 60 372 62 1,060

166 134 55 73 272 71 870

Non-current Trust Funds Subdivision street trees Eagle Views Estate Other trust funds Total non-current Total trust funds and deposits

193 83 56 332 1,392

193 93 57 343 1,213

Summary Trust Funds Deposits held Total trust funds and deposits

435 957 1,392

443 770 1,213

135

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 34.

RESERVES

The following transfers to and from Council’s reserves occurred during the reporting period: 2012 Asset Replacement Reserves

Balance as at 30/06/11 $ ‘000 2,057 8,220 5,390 2,804 3,471 252 22,194

Increment

Asset Revaluation Reserve

706,850

80,162

Total reserves

729,044

80,162

Balance as at 30/06/10 $ ‘000 1,808 6,822 5,218 5,195 748 252 20,043

Decrement

General Greensborough Project - RALC Plant and Equipment Strategic Properties Public Open Space Off-Street Car Parking

$’000

Transfers Between $ ‘000 (1,182) 1,182 335 (335) -

Transfers To $ ‘000 1,608 5,848 2,345 1,331 11,132

Transfers Balance as From at 30/06/12 $’000 $ ‘000 (186) 2,297 (3,835) 5,567 (4,385) 6,853 (746) 4,738 (2,432) 2,035 252 (11,584) 21,742 787,012

11,132

(11,584)

808,754

2011 Asset Replacement Reserves

General Greensborough Project - RALC Plant and Equipment Strategic Properties Public Open Space Off-Street Car Parking

$ ‘000

Asset Revaluation Reserve

710,174

(3,324)

Total reserves

730,217

(3,324)

Transfers Between $ ‘000 (2,000) 2,000 450 (450) -

Transfers To $ ‘000 2,754 212 3,699 800 3,970 11,435

Transfers Balance as From at 30/06/11 $ ‘000 $ ‘000 (505) 2,057 (814) 8,220 (3,527) 5,390 (3,641) 2,804 (797) 3,471 252 (9,284) 22,194 706,850

11,435

(9,284)

729,044

The above table generally indicates usage of funds for budgeted new works and services and recovery of capital from previous expenditures and investment projects in the ordinary course of business. These amounts are determined in accordance with the approved budget and subsequent Council reports. Public open space reserve collects contributions from developers relating to subdivision of land and then applied to the development of public open space assets.

136

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 Note 35.

36.

30/6/12 $ ‘000

30/6/11 $ ‘000

RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES TO SURPLUS/(DEFICIT) Cash flows from operating activities Profit/(loss) on disposal of infrastructure, property, plant and equipment Depreciation Finance costs Non-current investments

23,628

16,408

876 (12,148) (1,111) 227

5,459 (12,005) (1,966) (185)

Change in assets and liabilities, excluding investing activities:(Decrease) in receivables Increase/(Decrease) in inventories (Decrease)/Increase in prepayments (Increase)/Decrease in payables (Increase) in employee provisions Comprehensive result (deficit)/surplus

(83) 5 (32) (13,282) (748) (2,668)

(1,905) (4) 406 1,361 (634) 6,935

RECONCILIATION OF CASH For purposes of the Cash Flow Statement, cash and cash equivalents include cash on hand, deposits at call and other highly liquid investments with original maturities of three months or less, net of outstanding bank overdrafts. Cash at the end of the period as shown in the Cash Flow Statement is reconciled to the related items in the Balance Sheet. 57,513

62,210

Overdraft facilities

700

Unused facilities Used facilities Total overdraft facilities

700 700

Cash and cash equivalents 37.

FINANCING ARRANGEMENTS

137

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 Note 38.

30/6/12 $ â&#x20AC;&#x2DC;000

30/6/11 $ â&#x20AC;&#x2DC;000

RESTRICTED ASSETS Council has cash and cash equivalents (Note 23) that are subject to restrictions. As at the reporting date, Council had legislative restrictions in relation to Reserve Funds (Public Open Space and Off-Street Parking) and other externally imposed restrictions for unexpended grants and contributions, trust funds and deposits. Long Service Leave Public Open Space Reserve Off-Street Parking Reserve Trust funds Deposits held Unexpended grants Unexpended contributions Total restricted assets

(a),31 34 34 33 33 5

2,035 252 435 957 5,206 64 8,949

6,293 3,471 252 443 770 3,144 21 14,394

(a) Due to a change in the Regulations in February 2012, the Local Government (Long Service Leave) Regulations 2012, now do not require Council to maintain a separate bank account for long service leave. As a result, the restricted asset as at 30 June 2012 was nil. The 30 June 2011 comparative figure for restricted asset long service leave was based on the Local Government (Long Service Leave) Regulations 2002 and does not necessarily equate to the long service leave liability in Note 31 due to a different basis of calculation prescribed by the Regulation, applicable at the 30 June 2011 balance date.

138

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 39.

SUPERANNUATION

Banyule City Council makes employer superannuation contributions in respect of its employees to the Local Authorities Superannuation Fund, Vision Super (the Fund). Obligations for contributions are recognised as an expense in profit or loss when they are due. The Fund has two categories of membership, accumulation and defined benefit, each of which is funded differently. Accumulation Fund The Fund’s accumulation category, Vision Super Saver, receives both employer and optional employee contributions on a progressive basis. Employer contributions are normally based on a fixed percentage of employee earnings (9% required under the Superannuation Guarantee Legislation). No further liability accrues to Council as the superannuation benefits accruing to employees are represented by their share of the net assets of the Fund. Defined Benefit Plan The Fund’s Defined Benefit Plan is a multi-employer sponsored plan. As the Plan’s assets and liabilities are pooled and are not allocated by employer, the Actuary is unable to reliably allocate benefit liabilities, assets and costs between employers. As provided under Paragraph 32 (b) of AASB 119, Council does not use defined benefit accounting for these contributions. The Defined Benefit Scheme was closed to new members on 31 December 1993. Council makes employer contributions to the defined benefit category of the Fund at rates determined by the Trustee on the advice of the Fund’s Actuary. On the basis of the results of the most recent full actuarial investigation conducted by the Fund’s Actuary as at 31 December 2011, Council makes the following contributions:  

9.25% of members’ salaries (same as previous year); the difference between resignation and retrenchment benefits paid to its retrenched employees, plus contribution tax (same as previous year).

The Fund surplus or deficit (ie the difference between Fund assets and liabilities) is calculated differently for funding purposes (ie calculating required contributions) and for the calculation of accrued benefits as required in AAS 25 to provide the values needed for the AASB 119 disclosure in Council’s Financial Statements. AAS 25 requires that the present value of the defined benefit liability be calculated based on benefits that have accrued in respect of membership of the plan up to the measurement date, with no allowance for future benefits that may accrue. The Local Authorities Superannuation Fund latest 31 December 2011 actuarial investigation identified an unfunded liability of $406 million excluding contributions tax as at the date of the actuarial review, and a projected unfunded liability of $453 million excluding the contributions tax as at 1 July 2013, in the defined benefit fund of which we are a member. Council was made aware of the expected shortfall through the year and was informed formally of their share of the shortfall on 2 August 2012 which amounted to $9,116,706. Council has not yet decided when it will pay this shortfall. Council has, for the purposes of these Financial Statements, decided to account for the debt using a payment plan starting from 1 July 2013 for a period of 15years offered by Vision Super, until a decision is made. Council has accounted for this shortfall in the Comprehensive Income Statement in Employee Benefits (Note 14) and in the Balance Sheet in Trade and Other Payables (Note 30).

139

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 Note 39.

30/6/12 $ ‘000

30/6/11 $ ‘000

SUPERANNUATION (cont)

Details of Council’s contributions to superannuation funds during the year and contributions payable at 30 June are as follows: Defined Benefit Funds Employer contributions to Local Authorities Superannuation Fund (Vision Super) Employer contributions payable to Local Authorities Superannuation Fund (Vision Super) at reporting date - Additional Superannuation Call - Retrenchment Increment Invoice (Family Day Care) Accumulation Funds Employer contributions to Local Authorities Superannuation Fund (Vision Super) Employer contributions to employees’ personal Superannuation Funds Employer contributions payable to Local Authorities Superannuation Fund (Vision Super) at reporting date Employer contributions payable to employees’ person Superannuation Funds

(a)

(a), 14

662

2,442

9,117 130 9,247

3,050 17 3,067

2,721 22 2,743

105

1 106

Defined benefits contributions payable represents the additional superannuation call for Council employees, including staff who have retired.

140

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 30/6/12 $ ‘000

30/6/11 $ ‘000

Capital expenditure Construction – other Construction – Greensborough project Consultancy IT equipment Tree maintenance Website redevelopment Construction – pavilions Telephone upgrade Total contractual capital commitments

1,484 2,772 119 249 1,877 44 6,545

324 31,565 251 372 702 33,214

(ii) Capital expenditure commitments:Not later than one year Total contractual capital commitments

6,545 6,545

33,214 33,214

(iii) Operating expenditure Contractual commitments at balance date were for:Cemetery services Cleaning services Internal audit fee Valuation services Insurance claims Leisure facilities – management and operations Total contractual operating commitments

135 1,037 38 113 189 2,377 3,889

198 1,062 94 96 1,450

(iv) Operating expenditure commitments:Not later than one year Later than one year, but not later than five years Later than five years Total contractual operating commitments

720 3,161 8 3,889

581 869 1,450

Note 40.

CONTRACTUAL COMMITMENTS (i)

141

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 Note

30/6/12 $ ‘000

30/6/11 $ ‘000

41.

OPERATING LEASES

(i)

Operating Lease Commitments At the reporting date, Council had the following obligations under operating leases for the lease of equipment for use within Council’s activities (these obligations are not recognised as liabilities): Not later than one-year Later than one-year and not later than five-years Total operating lease commitments

(ii)

161 305 466

133 371 504

Operating Lease Receivables At the reporting date, Council has entered into property leases on some of its properties. These properties held under operating leases have remaining lease terms of between 1 and 16-years. Some leases include a CPI based revision of the rental charge annually. Future minimum rental income is as follows: Not later than one year Later than one year and not later than five years Later than five years Total operating lease receivables

1,747 2,658 905 5,310

1,212 3,376 1,022 5,610

The income for the period is shown in the Comprehensive Income Statement, under revenue as rental income.

142

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 Note

42.

CONTINGENT LIABILITIES

(i)

Guarantees The Banyule City Council has undertaken to act as bank guarantor for: - various local organisations’ outstanding loans - our own corporate business card facilities (a)

(a)

30/6/12 $ ‘000

30/6/11 $ ‘000

128 165 293

148 133 281

Business card facility limit $200,000

(ii)

Contingent Liabilities arising from Public/Products Liabilities As a local authority with ownership of numerous parks, reserves, roads and other land holdings, the Council is regularly met with claims and demands allegedly arising from incidents which occur on land belonging to Council. There are a number of outstanding claims against Council in this regard. Council carries $400 million of public/products liability insurance and had an excess of $10,000 on this policy in 2011/2012 (unchanged from 2010/2011). Therefore, the maximum liability of Council in any single claim is the extent of its excess. The primary insurer is MAV Insurance – Liability Mutual Insurance (formerly known as Civic Mutual Plus). There are no claims of which Council is aware which would fall outside the terms of Council’s policy.

(iii)

Contingent Liability arising from Professional Indemnity As a local authority with statutory regulatory responsibilities, including the responsibility of issuing permits and approvals, Council is met with claims and demands for damages allegedly arising from actions of Council or its Officers. Council carries $300 million of professional indemnity insurance and had an excess of $12,500 on this policy in 2011/2012 (unchanged from 2010/2011). Therefore, the maximum liability of Council in any single claim is the extent of its excess. The primary insurer is MAV Insurance – Liability Mutual Insurance (formerly known as Civic Mutual Plus). There are no instances or claims of which Council is aware which would fall outside the terms of Council’s policy.

143

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 Note

30/6/12 $’000

30/6/12 %

30/6/11 $’000

30/6/11 %

30/6/10 $’000

30/6/10 %

43. FINANCIAL RATIOS (a) Revenue Ratio Purpose: To identify Council’s dependence on non-rate income: Rate Revenue 63,325 59,471 55,806 = 55.4% = 52.5% = 53.7% Total Revenue 114,258 113,225 103,981 The level of Council’s reliance on rate revenue is determined by assessing rate revenue as a proportion of the total revenue of Council. (b) Debt Exposure Ratio Purpose: To identify Council’s exposure to debt: Total Indebtedness Total Realisable Assets

67,671 930,250

= 7.3%

47,302 869,689

= 5.4%

47,801 854,747

= 5.6%

Any liability represented by a restricted asset (Note 38) is excluded from total indebtedness. For the purpose of the calculation of financial ratios, realisable assets are those assets which can be sold and which are not subject to any restriction on realisation or use. The following assets are excluded from total assets when calculating Council’s realisable assets:  Restricted assets;  Total infrastructure assets;  Council’s investment in associates;  Land and buildings on Crown land (if any). This ratio enables assessment of Council’s solvency and exposure to debt. Total indebtedness refers to the total liabilities of Council. Total liabilities are compared to total realisable assets which are all Council assets not subject to any restriction and are able to be realised. The ratio expresses the percentage of total liabilities for each dollar of realisable assets. (c) Working Capital Ratio Purpose: To assess Council’s ability to meet current commitments: Current Assets 71,601 91,771 = 271% = 411% Current Liabilities 26,435 22,352 The ratio expresses the level of current assets the Council has available to meet its current liabilities. (d) Adjusted Working Capital Ratio Purpose: To assess Council’s ability to meet current commitments: Current Assets 71,601 91,771 = 377% = 594% Current Liabilities 18,977 15,450 The ratio expresses the level of current assets the Council has available to meet its current liabilities.

95,845 21,458

= 447%

95,845 15,054

= 637%

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

144

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 Note

30/6/12 $’000

30/6/12 %

30/6/11 $’000

30/6/11 %

30/6/10 $’000

30/6/10 %

43. FINANCIAL RATIOS (cont) (e) Debt Servicing Ratio Purpose: To identify the capacity of Council to service its outstanding debt: 1,118 1,966 155 Debt Servicing Costs = 0.98% = 1.74% Total Revenue 114,258 113,225 103,981 Debt servicing costs refer to the payment of interest on loan borrowings and bank overdraft (if any).

= 0.15%

The ratio expresses the amount of interest paid as a percentage of Council’s total revenue. (f) Debt Commitment Ratio Purpose: To identify Council’s debt redemption strategy: Debt Servicing & Redemption Costs 2,023 2,809 = 4.72% = 3.19% Rate Revenue 63,325 59,471 The strategy involves the payment of loan principal and interest and bank overdraft interest (if any). The ratio expresses the percentage of rate revenue utilised to pay interest and redeem debt principal.

145

286 55,806

= 0.51%

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 44. (i)

FINANCIAL INSTRUMENTS Accounting Policy, Terms and Conditions

Recognised Financial Instruments

Note

Accounting Policy

Terms and Conditions

Cash on hand and at bank, money market call account and term deposits less than 3-months are valued at face value.

On call deposits returned an average floating interest rate of 4.53% throughout the year (4.94% in 2010/11). The interest rate at balance date was 3.40% (6.00% at 30/06/11).

Interest is recognised as it accrues

Funds returned fixed interest average rate of between 4.45% and 6.05% net of fees (5.19% and 6.08% in 2010/11).

Financial Assets Cash and cash equivalents

Trade and other receivables - Sundry Debtors

Receivables are carried at amortised costs due less any provision for doubtful debts. A provision for doubtful debts is recognised when there is objective evidence that an impairment loss has occurred. Collectability of overdue accounts is assessed on an ongoing basis.

General debtors are unsecured and are usually interest free. Credit terms are usually up to 60 days.

Investments - Unlisted shares

Valued at cost. Dividends recognised when they are received.

Council has a shareholding in MAPS Group Ltd trading as Procurement Australia.

Term Deposits more than 3-months are valued at face value.

Funds returned fixed interest average rate of between 5.30% and 6.08% net of fees (6.00% and 6.40% in 2010/11).

Liabilities are recognised for amounts to be paid in the future for goods received and services provided to Council as at balance date whether or not invoices have been received.

General creditors are unsecured, not subject to interest charges and are normally settled within 30 days of the end of the month in which the invoice is received.

- Term Deposits more than 3months Financial Liabilities Trade and other payables

Superannuation shortfall Trust funds and deposits

The superannuation liability is unsecured, but is subject to an interest charge if not paid by 1 July 2013. 33

Trust funds and deposits are recognised when the deposit and trust amounts are received.

Deposits are unsecured, not subject to interest charges and are normally settled within 30 days of the refund request. Trust funds are unsecured and not subject to interest charges. Trust funds are settled when the purpose for holding them has been fulfilled.

Interest bearing loans and borrowings

Loans are carried at their principal amounts, which represent the present value of future cash flows associated with servicing the debt. Interest is accrued over the period it becomes due and recognised as part of payables. 146

Interest bearing loans and borrowings are secured by way of mortgages over the general rates. The weighted average interest rate on borrowings is 8.08% fixed for the period of each loan. (8.08% 2010/11).

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 44.

FINANCIAL INSTRUMENTS (cont)

(ii)

Interest Rate Risk

Council’s exposure to interest rate risk and the effective interest rates of financial assets and financial liabilities, both recognised and unrecognised, at balance date are as follows: Fixed Interest Maturing In Note

Floating Interest Rate $’000

1-Year or Less $’000

Over 1 to 5 Years $’000

More than 5-Years $’000

Non Interest Bearing $’000

$’000

Weighted Average Interest Rate %

Total

As at 30 June 2012 Financial Assets Cash and cash equivalents Investments – term deposits Trade and other receivables – Sundry Unlisted shares Total financial assets

23 28

6,823 -

50,680 3,741

10 -

57,513 3,741

4.74 5.30

24 28

6,823

3 54,424

90 90

396 396

4,237 9 4,256

4,726 9 65,989

0.64

1,203

1,955

8,258

11,976

23,392

3.66

32 33

986 2,189

4,808 6,763

26,928 35,186

1,392 13,368

32,722 1,392 57,506

8.08

Net financial assets/(liabilities)

6,823

52,235

(6,673)

23 28

30,345 -

31,856 20,131

9 -

62,210 20,131

5.95 6.06

24 28

30,345

6 51,993

123 123

504 504

4,352 9 4,370

4,985 9 87,335

1.00

10,018

32 33

904 904

4,445 4,445

28,277 28,277

1,213 11,231

33,626 1,213 44,857

Net financial assets/(liabilities)

30,345

51,089

Financial Liabilities Trade and other payables Interest bearing loans and borrowings Trust funds and deposits Total financial liabilities

(34,790) (9,112)

8,483

Comparatives as at 30 June 2011 Financial Assets Cash and cash equivalents Investments – term deposits Trade and other receivables – Sundry Unlisted shares Total financial assets Financial Liabilities Trade and other payables Interest bearing loans and borrowings Trust funds and deposits Total financial liabilities

147

(4,322)

(27,773) (6,861)

42,478

8.08

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 44.

FINANCIAL INSTRUMENTS (cont)

(iii)

Net Fair Value

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

Total Carrying Amount as per Balance Sheet $’000

Aggregate Net Fair Value $’000

As at 30 June 2012 On balance sheet – financial assets Cash and cash equivalents Investments Trade and other receivables – sundry Unlisted shares Total financial assets

23 28 24 28

57,513 3,741 4,726 9 65,989

On balance sheet - financial liabilities Trade and other payables Interest bearing loans and borrowings Trust funds and deposits Total financial liabilities

30 32 33

23,392 32,722 1,392 57,506

8,483

293

On balance sheet – financial assets Cash and cash equivalents Investments Trade and other receivables – sundry Unlisted shares Total financial assets

23 28 24 28

62,210 20,131 4,985 9 87,335

On balance sheet - financial liabilities Trade and other payables Interest bearing loans and borrowings Trust funds and deposits Total financial liabilities

30 32 33

10,018 33,626 1,213 44,857

42,478

281

Net financial position – assets Off balance sheet – liability Bank guarantees Comparative as at 30 June 2011

Net financial position – assets Off balance sheet – liability Bank guarantees

148

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 44.

FINANCIAL INSTRUMENTS (cont)

(iii)

Net Fair Value (cont) The following methods and assumptions are used to determine the net fair value of financial assets and financial liabilities: Payables, Cash Investments and Other Receivables The carrying amount approximated fair value because of the short-term to maturity. Unlisted Shares The carrying amount approximated fair value. Loan Guarantees The net fair value is estimated at zero because of the low exposure to Council and the assets, built on Council land under the guaranteed bank loans, are valued in excess of the guarantees.

(iv)

Credit Risk The maximum exposure to credit risk at balance date in relation to each class of recognised financial assets is represented by the carrying amount of those assets as indicated in the Balance Sheet.

(v)

Risks and Mitigation The risks associated with our main financial instruments and our policies for minimising these risks are detailed below. Market risk Market risk is the risk that the fair value or future cash flows of our financial instruments will fluctuate because of changes in market prices. The Councilâ&#x20AC;&#x2122;s exposures to market risk are primarily through interest rate risk with only insignificant exposure to other price risks and no exposure to foreign currency risk. Components of market risk to which Council is exposed are discussed below. Interest rate risk Interest rate risk refers to the risk that the value of a financial instrument or cash flows associated with the instrument will fluctuate due to changes in market interest rates. Interest rate risk arises from interest bearing financial assets and liabilities that Council uses. Non derivative interest bearing assets are predominantly short term liquid assets. Our interest rate liability risk arises primarily from long term loans and borrowings at fixed rates which exposes us to fair value interest rate risk. Our loan borrowings are sourced from major Australian banks by a tender process. Financial leases are sourced from major Australian financial institutions. Overdrafts are arranged with major Australian banks. Council manages interest rate risk on our net debt portfolio by: -

ensuring access to diverse sources of funding; reducing risks of refinancing by managing in accordance with target maturity profiles; and setting prudential limits on interest repayments as a percentage of rate revenue.

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

149

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 44.

FINANCIAL INSTRUMENTS (cont)

(v)

Risks and Mitigation (cont) Investment of surplus funds is made with approved financial institutions under the Local Government Act 1989. Council manages interest rate risk by adopting an investment policy that ensures:      

conformity with State and Federal regulations and standards capital protection appropriate liquidity diversification by credit rating, financial institution and investment product monitoring of return on investment benchmarking of returns and comparison with budget

Maturity will be staggered to provide for interest rate variations and to minimise interest rate risk Credit risk Credit risk is the risk that a contracting entity will not complete its obligations under a financial instrument and cause us to make a financial loss. Council has exposure to credit risk on all financial assets included in our balance sheet. To help manage this risk Council:  has a policy for establishing credit limits for the entities we deal with;  may require collateral where appropriate; and  will only invest surplus funds with financial institutions which have a recognised credit rating specified in our investment policy. Trade and other receivables consist of a large number of customers, spread across the consumer, business and government sectors. Credit risk associated with the Council’s financial assets is minimal because the main debtor is the Victorian Government. Apart from the Victorian Government we do not have any significant credit risk exposure to a single customer or groups of customers. Ongoing credit evaluation is performed on the financial condition of our customers and, where appropriate, an allowance for doubtful debts is raised. Council may also be subject to credit risk for transactions which are not included in the balance sheet, such as when a guarantee is provided for another party. Details of Council’s contingent liabilities are disclosed in Note 42.

Note

30/6/12 $ ‘000

30/6/11 $ ‘000

(9) 6 (2)

(15) 61 (5)

Movement in Provision for Doubtful Debts

Balance at beginning of the year Amounts provided for but recovered during the year New provisions recognised during the year Amounts already provided for and written off as uncollectable Balance at end of year

150

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 Note 44.

FINANCIAL INSTRUMENTS (cont)

(v)

Risks and Mitigation (cont)

30/6/12 $ ‘000

30/6/11 $ ‘000

Aging of Trade and Other Receivables At balance date other debtors representing financial assets were past due, but not impaired. These amounts relate to a number of independent customers for whom there is no recent history of default. The aging of Council’s Trade and Other Receivables at reporting date was: Current – not yet overdue Past due – by up to 30 days Past due – between 31 and 60 days Past due – between 61 and 90 days Past due – more than 91 days Total trade and other receivables

4,542 248 13 (12) 21 4,812

3,776 795 453 45 8 5,077

Note: Provision for doubtful debts, rates debtors, special rates and charges debtors and by-laws debtors, which include parking and animal infringements among others are not considered financial instruments as they fall outside of the scope of AASB7. At balance date, other debtors representing financial assets with a nominal value of $86,000 (2011 $91,000) were impaired. The amount of the provision raised against these debtors was $86,000 (2011 $91,000). The individually impaired debtors relate to general and sundry debtor and have been impaired as a result of their doubtful collection. Many of the long outstanding past due amounts have been lodged with Council’s debt collectors or are on payment arrangements. Liquidity risk Liquidity risk includes the risk that, as a result of our operational liquidity requirement, Council:  will not have sufficient funds to settle a transaction on the date;  will be forced to sell financial assets at a value which is less than what they are worth; or  may be unable to settle or recover a financial asset at all. To help reduce these risks Council:  has a liquidity policy which targets a minimum and average level of cash and cash equivalents to be maintained;  has readily accessible standby facilities and other funding arrangements in place;  has a liquidity portfolio structure that requires surplus funds to be invested within various bands of liquid instruments;  monitors budget to actual performance on a regular basis; and  set limits on borrowings relating to the percentage of loans to rate revenue and percentage of loan principal repayments to rate revenue. The Council’s exposure to liquidity risk is deemed insignificant based on prior periods’ data and current assessment of risk.

151

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 44.

FINANCIAL INSTRUMENTS (cont)

(v)

Risks and Mitigation (cont) The table below lists the contractual maturities for Financial Liabilities. These amounts represent undiscounted gross payments including both principal and interest amounts.

2012

Trade and other payables Trust funds and deposits Interest bearing loans and borrowings Total financial liabilities

6 mths or less $ ‘000 11,976 770

6-12 mths $ ‘000 1,203 291

1-2 yrs $ ’000 1,203 36

2-5 yrs $ ‘000 3,609 58

>5 yrs $ ‘000 12,031 237

Contracted Cash Flow $ ‘000 30,022 1,392

Carrying Amount $ ‘000 23,392 1,392

1,797 14,543

1,798 3,292

3,595 4,834

10,785 14,452

49,583 61,851

67,558 98,972

32,722 57,506

6 mths or less $ ‘000 10,018 635

6-12 mths $ ‘000 235

1-2 yrs $ ’000 37

2-5 yrs $ ‘000 63

>5 yrs $ ‘000 243

Contracted Cash Flow $ ‘000 10,018 1,213

Carrying Amount $ ‘000 10,018 1,213

1,797 12,450

1,798 2,033

3,595 3,632

10,785 10,848

53,178 53,421

71,153 82,384

33,626 44,857

Comparative 2011

Trade and other payables Trust funds and deposits Interest bearing loans and borrowings Total financial liabilities

152

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 44.

FINANCIAL INSTRUMENTS (cont)

(vi)

Sensitivity Disclosure Analysis Taking into account past performance, future expectations, economic forecasts and management’s knowledge and experience of the financial markets, the Council believes the following movements are ‘reasonably possible’ over the next 12 months (Base rates are sourced from Reserve Bank of Australia): - A parallel shift of +1% and -1% in market interest rates (AUD) from year-end rates of 3.5%. The table below discloses the impact on net operating result and equity for each category of financial instruments held by the Council at year-end, if the above movements were to occur.

2012 Carrying amount subject to interest $’000 Financial assets Cash and cash equivalents Trade and other receivables

6,823 489

Interest rate risk - 1% + 1% -100 basis points +100 basis points Profit Equity Profit Equity $’000 $’000 $’000 $’000 (68) (5)

(68) (5)

68 5

Comparative 2011 Carrying amount subject to interest $’000 Financial assets Cash and cash equivalents Trade and other receivables

30,345 633

Interest rate risk - 1% + 2% -100 basis points +200 basis points Profit Equity Profit Equity $’000 $’000 $’000 $’000 (303) (6)

(303) (6)

607 13

Note: The interest bearing loans and borrowings have interest rates that are fixed for the term of the loan.

(vii)

Fair Value Hierarchy Council has considered the fair value hierarchy of financial instruments carried at fair value by valuation method. Council is of the opinion that there are no financial assets held at fair value. The different fair value hierarchy levels have been defined as follows: Level 1: Level 2: Level 3:

Quoted prices (unadjusted) in active markets for identical assets or liabilities. Inputs other than quoted process included within level one that are observable for the asset or liability, either directly (ie prices) or indirectly (ie derived from prices). Inputs for the asset or liability that are not based on observable market data.

153

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 45.

RELATED PARTY TRANSACTIONS

(i)

Responsible Persons Names of persons holding the position of a Responsible Person at the Banyule City Council during the reporting period are: 2012 Councillors Peter McKenna Steven Briffa Craig Langdon Tom Melican (Mayor) Jenny Mulholland Jessica Paul Wayne Phillips

2011 Peter McKenna (Mayor) Steven Briffa Craig Langdon (Elected March 2011) Anthony Carbines (Retired November 2010) Tom Melican Jenny Mulholland Jessica Paul Wayne Phillips

Chief Executive Officer Simon McMillan (ii)

Simon McMillan

Remuneration of Responsible Persons The numbers of Responsible Officers whose total remuneration from Council and any related entities fall within the following bands:

Income range: $0 - $9,999 $10,000 - $19,999 $20,000 - $29,999 $30,000 - $39,999 $60,000 - $69,999 $280,000 - $289,999 $300,000 - $309,999 TOTAL

Total Remuneration for the reporting period for Responsible Persons included above, amounted to:

30/06/12 No.

30/06/11 No.

5 1 1 1 8

1 1 4 1 1 1 9

$ â&#x20AC;&#x2DC;000

$ â&#x20AC;&#x2122;000

529

495

(iii)

No retirement benefits have been incurred by the Council to a Responsible Person. (2011: $Nil)

(iv)

No loans have been made, guaranteed or secured by the Council to a Responsible Person of the Council during the reporting period. (2011: $Nil)

154

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 45.

RELATED PARTY TRANSACTIONS (cont)

(v)

Other Transactions Other related party transactions requiring disclosure have been considered and there are no matters to report for this reporting period or the prior reporting period. No transactions other than remuneration payments or the reimbursement of approved expenses were entered into by Council with Responsible Persons or Related Parties of such Responsible Persons during the reporting year. (2011 $Nil).

(vi)

Senior Officers’ Remuneration A Senior Officer other than a Responsible Person, is an Officer of Council who has management responsibilities and reports directly to the Chief Executive Officer or whose total annual remuneration exceeds $127,000 (2011 exceeds $124,000). The numbers of Senior Officers, other than the Responsible Persons, are shown below in their relevant income bands:

Income range: $127,000 - $129,999 $130,000 - $139,999 $140,000 - $149,999 $150,000 - $159,999 $160,000 - $169,999 $200,000 - $209,999 $220,000 - $229,999 $230,000 - $239,999 TOTAL

Total Remuneration for the reporting period for Senior Officers included above, amounted to:

155

30/06/12 No.

30/06/11 No.

2 2 10 1 2 2 19

2 5 8 1 1 2 1 20

$ ‘000

3,328

3,266

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 46.

EVENTS OCCURING AFTER BALANCE DATE

No other matter or circumstance, which is not otherwise disclosed in these Financial Statements, has arisen since the end of the financial period and the date of this report which has significantly affected or may significantly affect the operations of the Council, the results of those operations or the state of affairs of the Council in subsequent years. 47.

GREENSBOROUGH PROJECT

Council will deliver a new Regional and Aquatic Leisure Centre, now known as WaterMarc. WaterMarc will be a state of the art, Health and Wellbeing Centre comprising a 50 metre swimming pool, a learn-to-swim pool, active leisure water and gym facilities offering the community a broad range of activities and water exercise and training, competition recreation and play and learn-to-swim programs. Council also proposes to deliver community spaces, a modified Town Square and pedestrian walk to link with Main Street to create opportunities for public space and pedestrian flow from Flintoff Street to Main Street. The Greensborough Project (including WaterMarc) and Community Infrastructure are due for completion in 2012. The project is nearing construction completion and will be completed and opened to the public in the first quarter of the 2012-2013 financial year.

156

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 48. (i)

FUNCTIONS Revenues, Expenses and Assets have been attributed to the following functions: Functions

Council and Core Corporate 30/6/11 30/6/12 Community Programs 30/6/11 30/6/12 Corporate Services 30/6/11 30/6/12 City Development 30/6/11 30/6/12 City Services 30/6/11 30/6/12 Works and Services 30/6/11 30/6/12 TOTAL 30/6/11 TOTAL 30/6/12

Revenues

Gain/(Loss) for the year

Assets

$ ‘000

Expenses

Grants $ ‘000

Other $ ‘000

Total $ ‘000

2,090 2,319

(2,090) (2,319)

7,525 7,246

9,310 9,984

16,835 17,230

29,842 31,804

(13,007) (14,574)

404,597 433,728

3,480 4,333

70,335 69,118

73,815 73,451

21,665 30,316

52,150 43,135

117,311 99,238

1,012 1,289

8,710 7,414

9,722 8,703

12,878 12,719

(3,156) (4,016)

192,514 203,820

258 177

7,345 8,357

7,603 8,534

33,511 35,289

(25,908) (26,755)

476,652 547,184

3,674 4,390

1,576 1,950

5,250 6,340

6,304 4,479

(1,054) 1,861

15,949

97,276

113,225

106,290

6,935

1,191,074

17,435

96,823

114,258

116,926

(2,668)

1,283,970

157

Notes to and Forming Part of the Financial Statements FOR THE YEAR ENDED 30 JUNE 2012 48.

FUNCTIONS (cont)

(ii)

The activities of the Municipality are categorised into the following broad functions:

Council and Core Corporate Conduct and management of Council elections Corporate governance requirements

Management of Council meetings Induction and training of councillors

Corporate Services Accounts payable Best Value Plus certification program Business support and development Community and social planning Contract support Corporate development Corporate planning Customer communications Data administration Financial and management accounting

Finance management and planning Investments Occupational health and safety Payroll Purchasing Rates administration Revenue collection Victoria Grants Commission return Workforce development

Community Programs Aged and disability services Arts Community partnerships Family and childrenâ&#x20AC;&#x2122;s services Health services

Immunisation services Leisure and culture Library services Recreation Youth services

City Development Building control Cemetery management Development planning Environmental planning Economic development Engineering design, transport and drainage Fire prevention management Governance Infrastructure planning and asset management

Land information systems Local laws, parking enforcement and animal welfare Operation and management of council offices Property management Records and archival management School crossing supervision Strategic planning Transport planning Valuations

City Services Asset protection Building maintenance and services Cleansing Drain cleaning Construction and project management Depot operating Emergency management Environmental and waste management Horticultural services

Information technology Nursery Park maintenance and bushland management Plant and fleet management Recycling and waste transfer station Road and infrastructure maintenance Tree care/arboriculture Waste education

Works and Services Major works throughout the Municipality

158

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

MATTHEW TIBB ACA ACTING PRINCIPAL ACCOUNTING OFFICER Date: Monday, 10 September 2012 Ivanhoe In our opinion the accompanying Financial Statements present fairly the financial transactions of the Banyule City Council for the year ended 30 June 2012 and the financial position of the Council as at that date. As at the date of signing, we are not aware of any circumstances which would render any particulars in the Financial Statements to the misleading or inaccurate. We have been authorised by the Council on Monday, 10 September 2012 to certify the Financial Statements in their final form.

STEVEN BRIFFA COUNCILLOR Date: Monday, 10 September 2012 Ivanhoe

JENNY MULHOLLAND COUNCILLOR Date: Monday, 10 September 2012 Ivanhoe

SIMON McMILLAN CHIEF EXECUTIVE OFFICER Date: Monday, 10 September 2012 Ivanhoe 159

Auditor General Victoria Independent Audit Report

160

Auditor General Victoria Independent Audit Report (cont)

161

Banyule City Council Standard Statements for the Year Ended 30 June 2012

162

Standard Statements Contents Audit Report – Financial Statements and Standard Statements

Page No 160

Basis of Preparation of Standard Statements

164

Standard Income Statement

166

Variance Explanation Report – Income Statement

167

Standard Balance Sheet

169

Variance Explanation Report – Balance Sheet

170

Standard Cash Flow Statement

172

Reconciliation of Cash Flows from operating activities to comprehensive result

173

Variance Explanation Report – Cash Flow Statement

174

Standard Statement of Capital Works

175

Variance Explanation Report – Statement of Capital Works

176

Certification of Standard Statements

177

163

Standard Statements FOR THE YEAR ENDED 30 JUNE 2012 1.

Basis of Preparation of Standard Statements

Banyule City Council is required to prepare and include audited Standard Statements and explanatory notes within its Annual Report. Four Statements are required – a Standard Income Statement, Standard Balance Sheet, Standard Cash Flow Statement and a Standard Statement of Capital Works, together with explanatory notes. These Statements and supporting notes form a special purpose Financial Report prepared to meet the requirements of the Local Government Act 1989 and the Local Government (Finance and Reporting) Regulations 2004. The Standard Statements have been prepared on accounting bases consistent with those used for the General Purpose Financial Statements and the Budget relevant to the year under review. The results reported in these Statements are consistent with those reported in the General Purpose Financial Statements except for a more detailed disclosure of certain revenues and expenses. The Standard Statements are not a substitute for the General Purpose Financial Statements, which are included in the Council’s Annual Report. They have not been prepared in accordance with all Australian Accounting Standards or other authoritative professional pronouncements. The Standard Statements compare Council’s financial plan, expressed through its budget, with actual performance. The Local Government Act 1989 requires explanation of any material variances. The Council has adopted a materiality threshold of:    

$1.5 million or 20% (if over $250,000) for the Standard Income Statement; $3 million or 20% (if over $2 million) for the Standard Balance Sheet; $1.8 million or 10% (if over $1 million) for the Standard Cash Flow Statement; $2 million or 20% (if over $1 million) for the Standard Statement of Capital Works.

Explanations have not been provided for variations below the materiality threshold unless the variance is considered to be material because of its nature. The budget figures included in the Statements are those adopted by Council on 21 June 2011. The budget was based on assumptions that were relevant at the time of adoption of the budget. Also, the budget was set and adopted by Council before the 2010/2011 financial year was finalised. Thus the comparison between actual results and budget may result in variances which relate to the previous financial year. The Council set guidelines and parameters for revenue and expense targets in this budget in order to meet Council’s Business Plan and financial performance targets for both the short and long-term. Detailed information on the actual financial results is contained in the General Purpose Financial Statements, which are included in the preceding section of this Annual Report. The Standard Statements must be read with reference to both the budget and the Financial Statements to obtain an overall understanding of Council’s financial position and management.

164

Standard Statements FOR THE YEAR ENDED 30 JUNE 2012 2. Standard Income Statement The Standard Income Statement shows what has happened during the year in terms of revenue, expenses and other adjustments from all activities. The “Surplus/(Deficit)” or “bottom line” reflects the net contribution towards the financial position for the reporting period. The Income Statement requires revenues to be separately disclosed where the item is of such a size, nature or incidence that its disclosure is relevant in explaining the performance of the Council. 3. Standard Balance Sheet The Standard Balance Sheet shows a summary of all assets and liabilities at the end of the financial year. It shows the total of what Council owns as assets, less what it owes as liabilities. The bottom line of this statement is net assets, which is the net worth of Council under the financial framework, which has been built up over many years. Equity shows the revaluation of fixed assets, the value of reserves and the accumulated surpluses built up over many years. The information in the Standard Balance Sheet assists users in the assessment of the ability of assets to meet financial obligations. 4. Standard Cash Flow Statement The Standard Cash Flow Statement shows what has happened during the year in terms of cash. It explains what cash movements have resulted in the difference in the cash balance at the beginning and the end of the year. The net cash flows from operating activities, show how much cash remains, after paying for providing services to the community, which may be invested in things such as capital works. The information in the Standard Cash Flow Statement assists users in the assessment of the ability to generate cash flows, meet financial commitments as they fall due, including the servicing of borrowings, funding changes in the scope or nature of activities and obtaining external finance. A reconciliation of the net operating result and net cash flows from operating activities has been added to highlight non-cash items of significance. 5. Standard Statement of Capital Works The Standard Statement of Capital Works sets out all capital expenditure that has been spent or is expected to be spent, compared to budget, in relation to non-current assets during the financial year. These Capital Works are also categorised by the nature of the expenditure as being related to renewal, upgrade, expansion or new.

165

Standard Income Statement FOR THE YEAR ENDED 30 JUNE 2012 Note

INCOME General rates Special rates and charges Interest on rates and special charges Grants - recurrent Grants - non-recurrent Statutory fees and fines User fees and charges Interest income Rental income Contributions Other income Net gain on disposal of infrastructure, property, plant and equipment

2 3

Increase in share of net assets of associates accounted for by the equity method Total income

EXPENSES Employee benefits Materials, contracts and services Utility charges Depreciation Donations Finance costs Other expenses Decrease in share of net assets of associates Total expenses

4 5

6 7

Budget 30/06/12 $’000

Actual 30/06/12 $’000

63,210 871 271 11,209 4,341 7,399 15,438 1,251 1,739 3,622 97

63,325 828 347 13,110 4,325 7,119 15,380 4,193 1,780 2,436 266

115 (43) 76 1,901 (16) (280) (58) 2,942 41 (1,186) 169

0.2 4.9 28.0 17.0 0.4 3.8 0.4 235.2 2.4 32.7 174.2

1,014

876

(138)

13.6

110,462

273 114,258

49,698 34,389 2,342 13,509 397 2,690 6,469 109,494

Surplus/(Deficit)

OTHER Increment on revaluation of infrastructure and property assets Impairment loss on freehold buildings Net surplus/(loss) result for the reporting period

Variance

$’000

273 3,796

* 3.4

59,890 32,141 2,466 12,148 573 1,118 8,544

(10,192) 2,248 (124) 1,361 (176) 1,572 (2,075)

20.5 6.5 5.3 10.1 44.3 58.4 32.1

46 116,926

(46) (7,432)

* 6.8

968

(2,668)

(3,636)

375.6

90,000 -

82,248 (82)

(7,752) (82)

8.6 *

(11,470)

12.6

90,968

166

79,498

Standard Income Statement FOR THE YEAR ENDED 30 JUNE 2012 Variance Explanation Report Item

Note

Grants – recurrent

Explanation  

Grants Commission payments for the first half of the 20122013 financial year were received in advance. Due to the closure of the Family Day Care service, supplementary assistance grant payments were $201k less than budget. This is reflected in a corresponding reduction in supplementary assistance costs of $206k.

Interest income



Due to the delay in the construction of the Greensborough Project and some other New Works and Services projects, there was significantly more money to invest for the 20112012 financial year than expected and hence there was a significant increase in interest earned.

Contributions income



Contributions towards the Stormwater Management project were budgeted at $2.35m, but due to a delay in the project, these contributions will be invoiced in the future. Public Open Space contributions for the year exceeded budget by $556k due to higher than expected subdivision and building works. Contributions for renovations and extensions to a number of Pre-schools came in above budget and contributions of $548k were received for projects not in the original budget.

 

Employee benefits



At the end of the financial year, Vision Super made an additional call for the Defined Benefits Superannuation Scheme which was under funded. Council’s contribution due was an additional $10.726m (including tax). This included amounts for Council employees both past and present.

Materials, contracts and services



Due to the delayed opening of the WaterMarc Aquatic Centre, actual expenses associated with WaterMarc came in approximately $631k under budget. Works on Watsonia Community Hub were postponed until the 2012-2013 financial year and as a result was $200k under budget in the 2011-2012 financial year. Due to the Family Day Care program being closed during the year, supplementary assistance costs were $206k under budget. This is reflected in a corresponding reduction in supplementary assistance grants income of $201k. $1.188m of shopping centre and other contributions within the New Works and Services budget were budgeted in Materials, Contracts and Services instead of Other Expenses. The actual expense of these contributions is recorded in Other Expenses.

 



Finance costs



The full amount of loan interest to be paid this financial year was budgeted as financial costs. However, as per Australian Accounting Standard AASB 123, $1,579k interest was capitalised towards the Greensborough Project and the Strategic Properties Project (Ryans Road Redevelopment).

167

Standard Income Statement FOR THE YEAR ENDED 30 JUNE 2012 Variance Explanation Report (cont) Note

Item Other expenses

Explanation 

 

Increment on revaluation of infrastructure and property assets



$1.188m of shopping centre and other contributions within the New Works and Services budget were budgeted in Materials, Contracts and Services instead of Other Expenses. The actual expense has been classified as Other Expenses. Provision for doubtful debts and bad debts written off were $150k greater than budget. $691k contribution to cover Banyule’s portion of the Yarra Plenty Regional Library’s superannuation additional call plus contribution tax. The valuations of infrastructure assets are made by Consultants working in their field of expertise. The budget is set as the best estimate available at the time, whilst also acknowledging that there are many factors that impact on the valuations which are difficult to predict.

168

Standard Balance Sheet AS AT 30 JUNE 2012 Note

Budget 30/06/12 $’000

Actual 30/06/12 $’000

Variance

$’000

11,212 35,000 8,287 44 922 55,465

57,513 3,741 5,896 45 3,164 1,243 71,602

46,301 (31,259) (2,391) 1 3,164 321 16,137

413.0 89.3 28.9 2.3 * 34.8 29.1

403 3,497

716 3,539

1,226,139 1,230,039

1,208,113 1,212,368

(18,026) (17,671)

1.5 1.4

1,285,504

1,283,970

(1,534)

0.1

10,020 11,884 985

13,179 11,210 986

(3,159) 674 (1)

31.5 5.7 0.1

978 23,867

1,060 26,435

(82) (2,568)

8.4 10.8

314 31,737

10,213 348 31,736

(10,213) (34) 1

* 10.8 -

Total non-current liabilities

406 32,457

332 42,629

74 (10,172)

18.2 31.3

Total liabilities

56,324

69,064

(12,740)

22.6

1,229,180

1,214,906

(14,274)

1.2

417,024 812,156

406,152 808,754

(10,872) (3,402)

2.6 0.4

1,229,180

1,214,906

(14,274)

1.2

CURRENT ASSETS Cash and cash equivalents Investments Trade and other receivables Inventories Non-current assets classified as held for sale Other assets Total current assets NON-CURRENT ASSETS Trade and other receivables Investments Infrastructure, property, plant and equipment Total non-current assets

1 1 2 3

Total assets CURRENT LIABILITIES Trade and other payables Provisions Interest bearing loans and borrowings Other liabilities (Trust funds and deposits)

Total current liabilities NON-CURRENT LIABILITIES Trade and other payables Provisions Interest bearing loans and borrowings Other liabilities (Trust funds and deposits)

Net assets

313 42

77.7 1.2

Represented by: EQUITY Accumulated surplus Reserves Total equity

7 8

169

Standard Balance Sheet AS AT 30 JUNE 2012 Variance Explanation Report Note

Item Cash and cash equivalents and investments

Explanation 



Due to the delay in the construction of the Greensborough Project and some other New Works and Services projects, there have been fewer payments than expected, as a result the cash on hand is greater than budgeted. The majority of Council funds as at 30 June 2012 were held in short term investments (less than 3 months) as opposed to long term investments (over 3 months) which would be classified as investments. This resulted in approximately $30m budgeted as investments to be shown in cash and cash equivalents.

Trade and other receivables (current)



Due to a delay in the Stormwater Harvesting Project, the associated debtors’ invoices for both State and Federal Government Grant income were not raised during the financial year and were not outstanding as at 30 June 2012, as had been expected.

Non-current assets classified as held for sale



Three properties were transferred from Property noncurrent assets to Non-current assets classified as held for sale.

Infrastructure, property, plant and equipment



Over $10m worth of projects have been carried forward to the next financial year, which were anticipated to be capitalised when the budget was prepared. The total asset revaluation increment in this year is about $8m less than expected.

 5

Trade and other payables (current)

 

Part of the variance is due to the increase in creditor accruals $1.204m – this is mainly due to the construction of the Greensborough Project. Superannuation and tax of $1.356m is related to the additional superannuation call and also superannuation for retrenched staff. These expenses became known at the end of the financial year and were not budgeted. Workcover costs associated with the additional superannuation call for Council and a portion for Yarra Plenty Regional Library, were not budgeted. Salaries and wages accrual was greater than expected. This is mainly due to timing of the accrual.

Trade and other payables (non-current)



The non-current portion of the superannuation additional call is $10.213m of the total amount of $11.416m. A budget was not set for this amount.

Accumulated surplus



The superannuation additional call from Vision Super of $11.416m was not budgeted and has resulted in a lower accumulated surplus. Partially offsetting the superannuation additional call was the Grants Commission payment for the first half of the 20122013 financial year, received in advance.



170

Standard Balance Sheet AS AT 30 JUNE 2012 Variance Explanation Report (cont) Note 8

Item Reserves

Explanation ď&#x201A;§ The $86m of budgeted land valuation increment was subdued by $54m due to the current condition of the Victorian property market. ď&#x201A;§ The balance of the asset replacement reserves was less than anticipated due to some properties not being sold in the current financial year.

171

Standard Cash Flow Statement FOR THE YEAR ENDED 30 JUNE 2012 Note

Cash Flows from Operating Activities Receipts Receipts from ratepayers Interest received Grants received Other receipts Payments Payments to employees Payments to suppliers Other payments Net Cash Provided by Operating Activities Cash Flows from Investing Activities Acquisition of property, plant and equipment Expenditure on infrastructure assets Proceeds from sale of property, plant and equipment Net (purchase)/redemption of investments Net Cash (Used In) Investing Activities Cash Flows from Financing Activities Trust funds and deposits – net proceeds Finance costs Repayment of borrowings Net Cash Inflow Provided by Financing Activities

1 2

3 4

5 6

Net (Decrease)/Increase in Cash and Cash Equivalents Cash and cash equivalents at the beginning of the financial year Cash and Cash Equivalents at the End of the Financial Year

172

Budget 30/06/12 $’000

Actual 30/06/12 $’000

Variance

$’000

64,081 1,522 15,550 28,209

64,133 4,798 17,848 26,524

52 3,276 2,298 (1,685)

0.1 215.2 14.8 6.0

(48,691) (34,317) (9,208)

(48,032) (30,826) (10,817)

659 3,491 (1,609)

1.4 10.2 17.5

17,146

23,628

6,482

37.8

(40,324) (11,139)

(41,132) (5,421)

(808) 5,718

2.0 51.3

13,700 18,000

3,674 16,390

(10,026) (1,610)

73.2 8.9

(19,763)

(26,489)

(6,726)

34.0

14 (2,690) (904)

179 (1,111) (904)

165 1,579 -

1,178.6 58.7 -

(3,580)

(1,836)

1,744

48.7

(6,197)

(4,697)

17,409

62,210

11,212

57,513

Standard Cash Flow Statement FOR THE YEAR ENDED 30 JUNE 2012 Note

Reconciliation of Cash Cash and cash equivalents

Budget 30/06/12 $â&#x20AC;&#x2122;000

Actual 30/06/12 $â&#x20AC;&#x2122;000

11,212

57,513

Reconciliation of Cash Flows from Operating Activities to Comprehensive Result Surplus/(Deficit) Net Cash Flows from Operating Activities before change in Assets and Liabilities Net cash provided by/(used in) operating activities Profit/(Loss) on disposal of infrastructure, property, plant and equipment Finance costs Depreciation and Amortisation Increment on revaluation of infrastructure and property assets Impairment loss on freehold building Non-current investment

17,146

23,628

1,014 (2,690) (13,509) 90,000 -

876 (1,111) (12,148) 82,248 (82) 227

Net Cash Flows from Operating Activities before change in Assets and Liabilities

91,961

93,638

Increase/(decrease) in receivables Increase in inventories Increase/(decrease) in prepayments Increase in payables Increase in employee provisions Total Change in Assets and Liabilities, excluding Investing Activities Comprehensive Result Surplus/(Deficit)

86 27 (99) (1,007)

(83) 5 (32) (13,282) (748)

(993)

(14,140)

90,968

173

79,498

Standard Cash Flow Statement FOR THE YEAR ENDED 30 JUNE 2012 Variance Explanation Report Note

Item

Explanation

Interest received



Due to the delay in the construction of the Greensborough Project and some other New Works and Services Projects, there was significantly more money to invest for the 2011-12 financial year than expected and hence there was a significant increase in interest earned.

Grants received



Grants Commission payments for the first half of the 2012-13 financial year were received in advance.

Payment to suppliers



$1.188m of shopping centre and other contributions within the New Works and Services budget were budgeted in Materials, Contracts and Services instead of Other Payments. The actual payment of these contributions is recorded in Other Payments. Allowing for the adjustment mentioned above, the variance is $2.302m. The difference between actual and budget in the movement in trade creditors and payables, accounts for a major part of the variance. Due to the delayed opening of the WaterMarc Aquatic Centre, actual payments associated with WaterMarc came in approximately $631k under budget. Works on Watsonia Community Hub were postponed until the 2012-2013 financial year and as a result was $200k under budget in the 2011-2012 financial year. Due to the Family Day Care program being closed during the year, supplementary assistance costs have come in $206k under budget.

     4

Other payments



Expenditure on infrastructure assets



The major variance is due to the storm water harvesting project construction work which did not commence this financial year.

Proceeds from sale of property, plant and equipment



Four properties were budgeted to be sold in the current financial year, however, they were not put on the market to be sold. Another property was sold during the year, however, the settlement date is not until next financial year.

 7

Finance costs



174

Standard Statement of Capital Works FOR THE YEAR ENDED 30 JUNE 2012 Note

Capital Works Freehold land Freehold buildings Plant and equipment Motor vehicles Art collections Roads, streets and bridges Drainage Parks and gardens Playgrounds Furniture and fittings Work in progress Total Capital Works Type of Capital Works Renewal of assets Upgrade of assets Expansion of assets New assets Total Capital Works

2 3 4 5 6 7 8 1

Budget 30/06/12 $’000

Actual 30/06/12 $’000

Variance

$’000

2,324 28,456 1,081 5,006 15 2,710 5,587 2,842 3,427 15 51,463

529 2,582 1,699 2,587 16 1,780 187 767 1,060 36 35,403 46,646

1,795 25,874 (618) 2,419 (1) 930 5,400 2,075 (1,060) 3,391 (35,388) 4,817

39,357 2,364 9,742 51,463

41,247 3,110 2,289 46,646

Total Asset Additions per Note 29(i)

46,646

Reconciliation of Net Movement in Infrastructure, Property, Plant and Equipment Total capital works Asset revaluation movement Depreciation Written down value of assets sold Transfer to non-current assets held for sale Impairment loss Net Movement in Infrastructure, Property, Plant and Equipment

51,463 90,000 (13,509) (12,686)

46,646 82,248 (12,148) (798)

(3,164) (82)

115,268

112,702

175

77 91 57 48 7 34 97 73 * 99 235,920 9

Standard Statement of Capital Works FOR THE YEAR ENDED 30 JUNE 2012 Variance Explanation Report Item

Note

Total capital works

Explanation 



$10.23m worth of projects have been carried forward to the next financial year. This is, in part, offset by the network and telephone replacement project, Main Street upgrade, pedestrian signals project and WaterMarc associated borrowing cost which were not accounted for during the budget process. The Main Street upgrade project was funded by additional grants revenue.

Freehold land



Purchase of a Greensborough property has been deferred to the next financial year.

Freehold buildings



The buildings in the WaterMarc project were budgeted to be completed by the end of the financial year. The revised completion date is the end of the first quarter in the new financial year.

Motor vehicles



Acquisition of a waster truck $240k and heavy machines $800k have been carried forward to 2013 after reviewing the operational needs before finalising purchasing requirements. The purchasing program for passenger vehicles has been partly carried forward to the next financial year.

 5

Drainage



The variance is primarily due to the construction work on a storm water harvesting project which did not commence in this financial year.

Parks and gardens



$921k of works that were originally budgeted as parks and gardens, have now been reclassified as playgrounds in 2012. Darebin Creek Trail had a $625k budget carried forward to the next financial year.

 7

Furniture & Fittings



The $3.41m budgeted Flintoff Street office upgrade project has been carried forward to next financial year.

Work in progress



The difference is due to the Greensborough Project (inc WaterMarc) which has been capitalised as work in progress at 30 June 2012. At budget time, this project was expected to be completed by 30 June 2012.

Note: Reclassification of budgets between capital works categories occurs between the time the Budget is adopted and the end of the year as more in depth analysis of the expenditure types occurs and decisions are made whether or not to capitalise expenditure. The overall budget is not changed because of these reclassifications between categories.

176

Certification of Standard Statements FOR THE YEAR ENDED 30 JUNE 2012 In my opinion the accompanying Standard Statements have been prepared on accounting bases consistent with the Financial Statements and in accordance with the Local Government Act 1989 and the Local Government (Finance and Reporting) Regulations 2004.

MATTHEW TIBB ACA ACTING PRINCIPAL ACCOUNTING OFFICER Date: Monday, 10 September 2012 Ivanhoe In our opinion the accompanying Standard Statements have been prepared on accounting bases consistent with the Financial Statements and in accordance with the Local Government Act 1989 and the Local Government (Finance and Reporting) Regulations 2004. As at the date of signing, we are not aware of any circumstances which would render any particulars in the Standard Statements to be misleading or inaccurate. We have been authorised by the Council on Monday, 10 September 2012 to certify the Standard Statements in their final form.

STEVEN BRIFFA COUNCILLOR Date: Monday, 10 September 2012 Ivanhoe

JENNY MULHOLLAND COUNCILLOR Date: Monday, 10 September 2012 Ivanhoe

SIMON McMILLAN CHIEF EXECUTIVE OFFICER: Date: Monday, 10 September 2012 Ivanhoe

177