Wodonga Council Annual Report 2020-2021 by Wodonga Council

WODONGA COUNCIL ANNUAL REPORT 2020-2021

Wodonga Council presents to our community the Annual Report 2020-2021. Wodonga Council is committed to being transparent and accountable in its reporting to the community. To this end, the Annual Report 2020-2021 is a primary means of advising the community about the council’s performance, achievements and challenges during the financial year.

Acknowledgments This Annual Report was prepared to meet the operational and financial reporting requirements within the Local Government Act 1989 and the Local Government (Finance and Reporting) Regulations 2014. For further information contact Wodonga Council on (02) 6022 9300 or visit wodonga.vic.gov.au Wodonga Council acknowledges the traditional owners of this land on which we stand and pay our respects to their Elders past, present and future, for they hold the memories, the tradition and the culture of all Aboriginal and Torres Strait Islander People.

Cover: Who Am I, by Adnate 2021. Mural artwork on Wodonga Council city offices.

CONTENTS

Year in review

Your council

Mayor’s message

Councillors 18

CEO’s message

Executive team

Financial summary

Organisational structure

Our workforce

Major capital works

Progress against our Disability Action Plan 28

Major changes

Economic factors

Description of operations

Best value principles

Involving the community in decisions

Community satisfaction survey snapshot

13 Our performance

Our city Council plan Municipal information

Wodonga community profile

Governance 55 Performance statement

Report of operations

Annual financial report

Wodonga Council Annual Report 2020 - 2021

Vision Wodonga is a progressive, well-planned, growing city that is affordable, offers an abundance of opportunities and led by strong, empathetic stewardship

Mission We will strengthen our community in everything we do.

Values Our people have agreed to demonstrate the core values of trust, respect, integrity and learning. By demonstrating these values and behaviours, we build strong relationships with each other and with our community. TRUST Talk straight – say what you mean and mean what you say; Create transparency – do not withhold information unnecessarily or inappropriately; Right wrongs; Practice accountability – take responsibility for results without excuses; and Extend trust – show a willingness to trust others, even when it involves a measure of risk. RESPECT Treat other people with courtesy, politeness and kindness, no matter what their position or opinion; and Listen first – seek to understand others before trying to diagnose, influence or prescribe. INTEGRITY Tell the truth in an appropriate and helpful manner that does not compromise the organisation’s objectives and values; Keep confidences; Do what you say you will do to the best of your ability; Be open about mistakes; and Speak of those that are absent only in a positive way. LEARNING Work together and learn from each other; Continuously improve and innovate; Be open to change; and There is a high degree of responsibility for results - delivery without excuses.

Wodonga Council Annual Report 2020 - 2021

YEAR IN REVIEW MAYOR’S MESSAGE

As a first-time councillor and Mayor, I’m proud to present the annual report for 2020-2021 on behalf of my fellow councillors. This 12 months was a time of considerable change with the elections held in October and I want to start by paying tribute to the outgoing group of councillors and all the work they undertook, not only in the previous four years and the way they guided the city through great transformation, but also the work they did in their final months in very difficult times as we grappled with the beginning of the COVID-19 pandemic. I want to thank outgoing Mayor and long-serving councillor Anna Speedie on her tireless service, no greater example of which was in her final months, advocating for our community in the face of border closures, checkpoints and restrictions. It’s been an interesting introduction for myself and other new councillors to local government in the midst of a pandemic. But it has been our great privilege for all the councillor group to work and advocate for our community through these challenging times. We know the past 12 months has been hard for our community with significant impacts on our businesses - through lockdowns, restrictions, little to no visitation and cross-border headaches. We have been, and will continue, to advocate for support for our hardest hit sectors and ensure the impacts on our people is heard at all levels of government. The redevelopment of our city centre over the past 10 years has put us in a strong position to continue to grow our city as a vibrant destination for our community, our visitors as well as attracting new residents. It’s simply a great place to live and work.

Year in review

We work to ensure that everyone has the opportunity to share in that vibrant future. In our first few months, after a comprehensive induction by council staff, we worked with and listened to our community in the development of a new Council Plan that sets our strategic direction for the next four years. We have committed funding in our budget to plan for priority projects that will be part of the next stage of our transformation. And we build on the foundation of those that have gone before, with works under way to bring major projects including our new library-gallery and Baranduda Fields to fruition. Our Two Cities One Community partnership continues to realise its importance for our cities as we stood together in the face of those border closures and the impacts on our community. The partnership continues to deliver on a range of projects with Upstream delivered for a second time under a COVID-friendly model and discussions and progress continuing on the Regional Deal. On behalf of my fellow councillors, I would like to thank our community for your support in 2020-2021 and for everything you do to make our city great. In 2021-2022, we look forward to being able to get out into the community, engage with and continue to hear from you on what’s important for our city now and into the future.

Cr Kev Poulton Wodonga Mayor

CEO’S MESSAGE

It’s my great privilege to present the 2020-2021 annual report for Wodonga Council at the end of a turbulent period in our city and for our nation. Twelve months ago, we were reflecting on the impact of summer bushfires and the start of the COVID-19 pandemic and the way forward.

I’m proud that our council built on its strong performance in the 2020 annual community satisfaction survey with another positive result in the 2021 results, despite the many impacts of COVID-19, and with the appearance of public areas again an outstanding performer. The council’s overall performance measure was 67 – up two points on the previous year - compared to 60 for regional centres and 61 for the state averages.

A year on, and we find things have changed, and stayed the same, having lived with COVID-19 for 18 months and endured multiple lockdowns. Despite these challenges, I’m very proud to lead a committed council team that has remained agile and responsive during these difficult times, supporting our community and maintaining the services that make our city a great place to live, work and invest. We’ve continued to see growth in our population as well as investment in our city, with several new businesses opening in the past 12 months and ongoing interest in vacant land including at Logic. We have been lobbying to all levels of government throughout the pandemic to share the impact on our community of the border closures, the disparity between restrictions between the states and for more support for our businesses. As part of our business support we simplified the process for businesses undertaking outdoor dining and advertising activities, creating one simple permit that allowed businesses to begin operating immediately. For our hospitality industry, with the boost from Victorian Government funding, we waived the fees for these permits and made improvements in our public areas to accommodate outdoor dining as well as the development of campaigns to support our local businesses.

We had many disruptions over the past year in the ways in which we inform, engage and deliver services to our community so it is really pleasing that the community continues to acknowledge that our staff are continuing their hard work in making this a great place to live and work. As always, there is much we can take away from these results and where we will continue to improve. We look forward to moving to a new COVID normal way of life and getting back to ways in which we can meet and engage our community, our businesses and our new residents. To close, I want to acknowledge our community, the council - both the previous and current groups - and all the staff for continuing their service to our city and community and upholding our mission “to strengthen our community in all that we do”.

Mark Dixon Wodonga Council CEO

Wodonga Council Annual Report 2020 - 2021

FINANCIAL SUMMARY

In the 2020-2021 financial year, Wodonga Council had a Strategic Resource Plan that set out the financial direction of the council. One of the key objectives of this plan is to ensure that the council remains financially sustainable. For the 2021-2022 financial year onwards, the Strategic Resource Plan has been replaced by the Financial Plan 2021-2022 to 2030-2031, in line with the requirements of the Local Government Act 2020. While this report focuses on the 2020-2021 result, it is important to see this result in the context of the future financial strategic objectives of the council, which are:

SHORT TERM • Ongoing operational reviews to continue generating operating surpluses • Retain proceeds from any land sales to avoid further borrowings for future major priority capital projects • Continued focus on securing grant funding, particularly for capital works • Continue to divest property and assets no longer required

LONG TERM • New borrowings, where necessary, only being undertaken to complete identified major priority projects (e.g. Depot purchase with favourable rate of return on the investment) • Where appropriate, fees and charges are set at a level to achieve full cost recovery • Capital works expenditure is prioritised, firstly investing in the critical renewal of assets to maintain minimum service levels then on wider renewal, upgrade, expansion and new development.

WODONGA COUNCIL’S 2020-2021 FINANCIAL RESULTS AT A GLANCE • Operating expenditure - $76.9 million • Capital works program delivered - $24.1 million • Rates and charges - $46.7 million (53.4% of total operating revenue) • Operating surplus - $10.5 million ($10.5 million in 2019-2020) • Net funds available - $33 million • Working capital – 3.3 current assets to 1.0 current liability • Decrease in borrowings – from $18.6 million in 2019-2020 to $16.7 million in 2020-2021.

Year in review

RATIO OF CAPITAL EXPENDITURE TO DEPRECIATION

230% 209%

207%

190% 168%

170%

164%

150% 139%

130% 120%

110%

114%

90% 70%

A = actual B = budget

-22 B 21

-21 A 20

-20 A 19

-19 A 18

-18 A 17

-17 A 16

-16 A 15

-15 A 14

-14 A 13

A 12

-13

50%

WORKING CAPITAL RATIO 3.50

3.36

A = actual

3.26

3.30

B = budget 3.00 2.69

2.66

3.00

2.50

2.00 2.10

1.75 1.50 1.58

1.55

Wodonga Council Annual Report 2020 - 2021

-22 B 21

-21 A 20

-20 A 19

-19 A 18

-18 A 17

A 16 -17

-16 A 15

-15 A 14

A 13

-14

1.00 -13

Current assets to current liabilities

This ratio is projected to reduce in 2021-2022 as funds are expended on capital development.

209%

210%

WORKING CAPITAL This graph demonstrates that the council has the ability to discharge its short-term obligations as the value of current assets is in excess of the value of current liabilities.

225%

A 12

This ratio highlights the slight drop in 2019-2020 due to the effects of bushfires and Covid-19 restrictions, which resulted in $11 million of delayed capital projects being rolled into 2020-2021. Due to the carried over projects and a number of Covid-19 stimulus grants, capital expenditure in 2020-2021 has increased substantially. An additional $12.8 million capital projects have also been rolled into the 20212022 year, therefore capital expenditure is forecast to remain strong and includes the commencement of the Baranduda Fields project.

232%

Capital spend as a % of depreciation

This is a measure of whether council spending on infrastructure is at a greater rate than the infrastructure is depreciating. Ratios higher than 100 per cent indicate that the council is.

250%

NET FUNDS AVAILABLE

35,000

Net funds available are the council’s working capital (current assets less current liabilities) less restricted cash-backed reserves.

30,000

18,769

15,877 15,000

9,795

10,000

3,749

5,000

3,173

-22 B 21

-21 A 20

-20 A 19

-19 A 18

-18 A 17

-17 A 16

-16 A 15

-15 A 14

-14 A 13

A 12

-13

LOAN LIABILITY 33,000

A = actual 30,991

B = budget

31,000 29,256 29,000

27,426

25,576

25,000

23,875 22,221

23,000

20,463

21,000

18,601

18,508

19,000 16,674 17,000

-22 B 21

-21 A 20

-20 A 19

-19 A 18

-18 A 17

-17 A 16

-16 A 15

-15 A 14

A 13

-14

15,000 -13

$‘000’s

27,000

A 12

Year in review

7,803

7,778

Wodonga Council has a total debt liability of $16.7 million at the end of 20202021 which is a decrease of $1.9 million from 20192020. During the 2020 2021 year council did not borrow any new funds.

28,803

20,000

DEBT LEVELS

The council has adopted a strategy of retaining proceeds from any future land sales to reduce the need for further borrowings, which may impact on the projected level of debt.

B = budget

25,000

Net funds are high as a result of the substantial capital works program scheduled for the 20212022 financial year, with the balance to reduce substantially on completion of large projects, including Lawrence St Bridge, Hyphen Library Gallery and Baranduda Fields stage 1.

The council’s 2021-2022 budget includes provision for $4 million additional new borrowings should the option to purchase the Depot be exercised. This proposed purchase has an attractive rate of return on investment should it proceed.

31,397

$‘000’s

Net funds available have increased from 20182019 due to changes in reporting required under the Australian Accounting Standards, where prepaid grant funds received and land currently under offer are reclassified as current assets.

33,043

A = actual

DEBT SERVICING RATIO The debt servicing ratio identifies the capacity of the council to service its outstanding debt. This ratio expresses the amount of interest paid as a percentage of the council’s total revenue. Each year as Council’s borrowings are repaid and revenues grow the Debt servicing ratio is reducing. It is forecast for the ratio to increase slightly in 2021-2022 should the purchase of the Depot proceed, due to the $4 million budgeted increase in borrowings required for that purchase.

DEBT SERVICING RATIO 3.5% A = actual 3.0% 3.0%

2.8% 2.6%

2.5% 2.3% 2.1% 2.0% 1.6%

1.6%

1.5% 1.3%

-22 B 21

-21 A 20

-20 A 19

A 18 -19

-18 A 17

-17 A 16

-16 A 15

-15 A 14

A 13 -14

-13

1.0%

A 12

Interest paid as a % of total revenue

B = budget

3.1%

Wodonga Council Annual Report 2020 - 2021

DESCRIPTION OF OPERATIONS

Wodonga Council delivers a broad range of services ranging from family and children’s services, traffic regulation, parks and gardens, youth facilities, waste management and community building; to business development, planning for appropriate development and ensuring accountability of the council’s budget. These services and community infrastructure support the wellbeing and prosperity of our community. The council’s vision, strategic objectives and strategies to further improve services and facilities are described in the Council Plan 2017–2021 and the Budget 2020-2021 and are reported on in this document. The delivery of services, facilities, support and advocacy to achieve the key strategic objectives is measured by a set of service performance indicators and measures. The council also has a range of responsibilities under Victorian and Australian legislation.

Year in review

MAJOR CAPITAL WORKS

LAWRENCE ST BRIDGE Works on the Lawrence St bridge over House Creek and the reconstruction of the approaches were completed on July 30, 2021. The bridge, which was more than 50 years old, was raised to allow the shared pathway that crosses Lawrence St to pass underneath the bridge. This has made it safer for pedestrians and cyclists using the House Creek path network. It has also improved the flood capacity of the bridge.

HYPHEN – WODONGA LIBRARY GALLERY REDEVELOPMENT The new library gallery was officially opened on August 2, 2021. Hyphen features three main galleries – Artspace Gallery, Playspace Gallery and Community Gallery – as well as the Hallway Gallery. It hosts the full library service and features three meeting rooms; the Community Studio overlooking the courtyard suitable for workshops, meetings and presentations; the Creative Studio for resident artists; Tech Studio and Sound Studio; and, a Sculpture Terrace.

BURRAJA CULTURAL AND ENVIRONMENT CENTRE REFURBISHMENT Works on the Burraja Cultural and Environment Centre refurbishment continue to progress after it received $430,000 from the Victorian Government’s Regional Infrastructure Fund. The funding has gone towards refurbishing the centre, redesigning displays and improving accessibility. The centre will offer educational programs on local Aboriginal culture and the environment, as well as being the home of a social enterprise that provides skill development, training and employment for Aboriginal people.

HEREFORD ST BRIDGE The pedestrian bridge over House Creek leading into Willow Park was replaced with a new, wider bridge at the start of 2020. The bridge on the popular walking trail, which connects the recreation precinct to Hereford St, was opened just in time for the Easter school holidays.

KLINGS HILL CLIMB TRACK In November, 2020, the mountain bike loop trail was completed and opened to the public. It is named La Cabra and features a single mountain bike track, from the upper saddle on the Central Management Track to the Klings Hill summit. This completes a loop with the downhill single track known as Rock N Roller. It is an ascent-only route, separating riders and walkers sharing the Coyles Track. The track was Action 14 of the Planning for Wodonga Hills’ masterplan.

Wodonga Council Annual Report 2020 - 2021

MAJOR CHANGES There were no major organisational changes in the 2020-2021 year.

ECONOMIC FACTORS In 2020-2021, the average rate increase was capped at 1.5 per cent in line with the Victorian Government’s rate cap. Government grants as a proportion of total council revenue (excluding non-monetary contributions and net profit/(loss) on disposal of property plant and equipment) increased substantially from 20.7 per cent in 2019-2020 to 31.4 per cent in 2020-2021, on the back of several COVID-19 pandemic-related stimulus grant programs. The Reserve Bank of Australia’s official cash rate reduced from 0.25 per cent at June 30, 2020, to a record low 0.1 per cent in November 2020 and remained steady at this rate to June 30, 2021. The weighted average investment rate earned by the council for the year reduced from 1.62 per cent at June 2020 to 0.48 per cent to June 2021. As a result interest income earned during 2020-2021 was lower compared with the previous year.

Year in review

BEST VALUE PRINCIPLES The Local Government Act 1989 identifies six Best Value Principles that all councils in Victoria are required to comply with, which are summarised as follows. 1. All services provided by a council must meet quality and cost standards 2. All services provided by a council must be responsive to the needs of its community 3. Each service provided by a council must be accessible to those members of the community for whom the service is intended 4. A council must achieve continuous improvement in the provision of services for its community 5. A council must develop a program of regular consultation with its community in relation to the services it provides 6. A council must report regularly to its community on its achievements in relation to the best practice principles

The council undertakes a number of processes to support the best value principles. To achieve best value, continuous improvement and to ensure the council remains responsive to community needs, Wodonga Council has embedded a rolling service review for all services and introduced a comprehensive service planning process in the 2018-2019 year. Community services including Wodonga Library, The Cube Wodonga, preschools, community centres and Bonegilla Migrant Experience conduct annual surveys and ongoing consultation with the community on the services they provide. Throughout the development of all of council’s plans and strategies, consultation is conducted with the community and key stakeholders on a cyclical basis. Following the election of the new council in November 2020, a series of community workshops and other consultation activities were conducted as part of the development of the Council Plan 2021-2025, review of the Community Vision: Wodonga 2033, the development of the annual budget and the new Financial Plan 2021-2031. In the 2019-2020 year, additional community consultation events were introduced and are planned to occur four to five times a year. The coronavirus pandemic affected in-person consultation events during the 2020-2021 year. There are several reports prepared throughout the year by the council that monitor the council’s performance standards against a variety of strategic indicators, including the annual budget, quarterly performance reports, Council Plan progress and the Local Government Performance Reporting framework which is available on the Know Your Council website.

Wodonga Council Annual Report 2020 - 2021

OUR CITY

Our city

MUNICIPAL INFORMATION

Wodonga is strategically placed between Melbourne and Sydney on the Hume Highway in North East Victoria.

wodonga.vic.gov.au info@wodonga.vic.gov.au Phone: (02) 6022 9300 Fax: (02) 6022 9322

The city’s residential base is more than 42,000 and the total area of Wodonga is 433.7 square kilometres; with 13 localities. Wodonga includes the main urban centre of the city, as well as the rural localities of Bandiana, Baranduda, Barnawartha North, Bonegilla, Castle Creek, Ebden, Gateway Island, Huon Creek, Killara, Leneva and Staghorn Flat.

CITY OFFICES

POSTAL ADDRESS

104 Hovell St, PO Box 923, Wodonga Wodonga VIC 3690 VIC 3689

WODONGA

Wodonga Council Annual Report 2020 - 2021

Our city

WODONGA COMMUNITY PROFILE RESIDENTS

DENSITY

MEDIAN AGE

42,662 ABS ERP 2020

.98 PERSONS PER HECTARE

HOUSEHOLD INCOME $1,273 MEDIAN PER WEEK

HOME OWNERSHIP 25.6%

FULLY OWN 32.5%

MORTGAGE

34% 7.3%

RENTING

NOT STATED

0.06% OTHER TENURE TYPE

HOUSEHOLDS COUPLES WITH CHILDREN

COUPLES WITHOUT CHILDREN

ONE-PARENT FAMILIES

GROUP HOUSEHOLD

LONE PERSON

OTHER

27.6%

25.8%

12.4%

2.9%

24.6%

6.5%

PEOPLE WHO SPEAK A LANGUAGE OTHER THAN ENGLISH AT HOME

PEOPLE WHO HELP AS A VOLUNTEER

PEOPLE NEED ASSISTANCE DUE TO A DISABILITY

HOMES HAVE INTERNET ACCESS

HOMES DO NOT HAVE A MOTOR VEHICLE

5.9%

21%

5.8%

84.6%

5.1%

profile.id / ABS census 2016

Wodonga Council Annual Report 2020 - 2021

YOUR COUNCIL

COUNCILLORS Wodonga Council comprises seven councillors. Elections were held in October 2020 resulting in the election of the following. Cr Kat Bennett kbennett@wodonga.vic.gov.au or 0466 731 179 First elected: 2016 Cr Libby Hall lhall@wodonga.vic.gov.au or 0466 731 180 First elected: 2016 Cr Ron Mildren rmildren@wodonga.vic.gov.au or 0466 731 182 First elected: 2016 Cr Kev Poulton kpoulton@wodonga.vic.gov.au or 0434 958 716 First elected: 2020 Cr Olga Quilty oquilty@wodonga.vic.gov.au or 0435 547 852 First elected: 2020 Cr Graeme Simpfendorfer gsimpfendorfer@wodonga.vic.gov.au or 0435 243 594 First elected: 2020 Cr John Watson jwatson@wodonga.vic.gov.au or 0428 325 377 First elected: 2012 (Previously served from 1997 to 2004) Three councillors from the 2016-2020 council were not re-elected or did not stand again. Cr Danny Lowe Councillor from 2016 to 2020. Not re-elected. Cr Brian Mitchell Councillor from 2019 to 2020. Not re-elected. Cr Anna Speedie Councillor from 2005 to 2020 (Mayor from 2015 to 2020). Retired.

Your council

Cr Olga Quilty, Cr Libby Hall, Cr Ron Mildren, Cr Graeme Simpfendorfer, Cr John Watson, Cr Kat Bennett and Cr Kev Poulton.

Wodonga Council Annual Report 2020 - 2021

EXECUTIVE TEAM

MARK DIXON

DEBRA MUDRA

M.Sc, B.Sc

PhD, BEd (ECE), BTeach (ECE), Dip CS.

Mark joined Wodonga Council in 2019 after a tenure as the Chief Executive Officer and Managing Director of Wodonga Institute of TAFE.

Debra joined Wodonga Council in 1996, bringing with her extensive experience in the planning, management and delivery of community service and development programs.

He has spent more than 30 years in both the British and Australian Armies with active service in Iraq and Afghanistan and worked throughout Europe and the US. He was also a Commanding Officer at Bandiana’s Army Logistic Training Centre. Mark is a graduate of the Royal Military Academy Sandhurst and also holds Bachelor and Master of Science degrees from the UK’s Cranfield University. He has completed the Cranlana Institute’s executive leadership program and the Australian Institute of Company Directors (AICD) course.

Your council

Her experience encompasses community planning and policy development, facility development as well as the management of service delivery. Debra is responsible for a range of council services and functions that support the community, enhance well being and provide opportunities to participate in the life of the city.

NARELLE KLEIN B Bus (Acc), CA

SIMONE HOGG

LEON SCHULTZ

BE (Civil) Narelle commenced at Wodonga Council in 2015 after a career spanning 20 years in the big four chartered accountancy firms and 10 years in corporate finance for the Australian Government. In addition, she has held positions as a not-for-profit board member and audit and risk committee chair in a small rural health service and as an external member on the Audit Committee for a local government. Over her career, she has developed a reputation for establishing continual improvement practices and transparent governance and reporting processes. She also has a keen interest in environmental sustainability.

Leon was previously manager engineering and parks. He relocated to Australia from his home country of South Africa in September, 2007. He was initially employed as manager technical services with the Rural City of Wangaratta before taking up his previous role with Wodonga Council in March, 2010. Leon has a degree in civil engineering and more than 28 years’ experience in local government.

Simone joined Wodonga Council in 2002. She has experience in strategic planning, project management, infrastructure projects, community planning, community services and product development. Simone is responsible for arts, events, tourism, The Cube Wodonga, Wodonga Library, Arts Space Wodonga, Bonegilla Migrant Experience, community planning, youth, community grants, maternal child health, preschools, community development programs, sport and recreation services. She has a passion for creating services that enhance the wellbeing and quality of life of our residents and visitors to the city.

Wodonga Council Annual Report 2020 - 2021

ORGANISATIONAL STRUCTURE

MARK DIXON Chief Executive Officer

Your council

DEBRA MUDRA Deputy CEO City Growth, Engagement and People

City Growth, Engagement and People Communications, Marketing and Customer Focus People and Workplace Investment Attraction and Economic Development

NARELLE KLEIN Director Finance and Systems

Finance and Systems

LEON SCHULTZ

SIMONE HOGG

Director Planning and Infrastructure

Director Community Development

Planning and Infrastructure

Community Development

Finance

Building and Planning

Information Services

Outdoor Operations

Risk and Continuous Improvement

Projects and Design Environment and Community Protection

Community Planning and Wellbeing Cultural Services and Tourism Family, Youth and Early Years Sport and Recreation

Wodonga Council Annual Report 2020 - 2021

OUR WORKFORCE

Key Men Women

STAFF NUMBERS BY DIRECTORATE AND GENDER

Planning and Infrastructure

67 115 146

Community Development

City Growth, Engagement and People

28 8 18

Finance and Systems

17 2

Executive Services

CEO

1 0

COUNCIL STAFF EMPLOYMENT CLASSIFICATION

Your council

120

150

Employment classification

Number of staff

Band 1

Band 2

Band 3

Band 4

Band 5

Band 6

Band 7

Band 8

ASAs

Preschool staff

MCH nurses

Immunisation nurses

Senior Executive Officer

Senior Officer

Chief Executive Officer

TOTAL

431

OVERVIEW OF SENIOR POSITIONS Level

Men

Women

Directors and CEO

Management

Team Leaders

COUNCIL STAFF PROFILE

Full time

Part-time

Casual

Men

Women

Full time total

Planning and Infrastructure

101

182

Finance and Systems

Community Development

176

CEO Executive Services

City Growth, Engagement and People

Men

Women

Parttime total

Men

Women

Casual total

Grand total

* Please note: Not every casual is linked to a business unit for reporting purposes.

Wodonga Council Annual Report 2020 - 2021

Wodonga Council is committed to providing Wodonga Council has adopted a Talent Management Strategy focussed on four key areas - talent acquisition, staff deployment, staff engagement and staff development. The council has employed new tools and strategies to identify talent and expanded the promotion of our working environment and conditions to expand the pool of people considering working for the council. The Victorian Government’s Working for Victoria program introduced a new diversity of staff to the organisation, with different backgrounds, experience and geography. The council is using this experience to enhance approaches to becoming a more diverse workforce, better representative of the whole community. To prepare staff moving into new roles or developing in existing roles, the council introduced a range of coaching and mentoring arrangements, both internal and external. Throughout the COVID-19 pandemic, staff were redeployed throughout the organisation to ensure permanent staff could continue to perform productive work, despite the closure of significant services under statewide restrictions. The council is using this experience of internal movements to improve its ability to meet spontaneous surges in service needs, as well using internal deployment opportunities to develop staff.

Your council

With the challenges of remote working and limitations placed on gatherings, the council used online as well as traditional tools to engage with staff, hosting all staff training and events online. Staff wellbeing has been a significant focus, where staff heard from The Resilience Project, participated in a month of wellness challenges, experienced onsite allied health support as part of a wellbeing program and were supported to take leave. Through the year, the council developed a capability framework that addresses the key capabilities required for positions in all levels of the organisation and embedded these requirements into recruitment and performance review processes. These are used to drive learning and development programs to ensure staff have the skills and capabilities they need for their position now and to meet the changing needs of the future. A new approach to engaging in safety discussions was implemented with significant reform of the Health Safety and Wellbeing Committee and designated work groups, to stimulate enhanced engagement and participation from staff at all levels of the organisation. The incident reporting system has been renewed with the result of an increase in the breadth of matters being reported. New parameters have been defined for reporting on incident severity to better monitor the impact of council investment in preventative and early intervention strategies to make the workplace safer.

A program of activities to support equality in our workplaces continues with substantial reform of respectful behaviour policy settings and open discussion about performance in eliminating unlawful and disrespectful behaviours. Staff were surveyed on their views on diversity and inclusion and this data will be used to build the Gender Equity Action Plan according to the Gender Equality Act. The plan will revisit and reset past measures as well as develop new measures in consultation with staff. The Reconciliation Action Plan is awaiting approval from Reconciliation Australia and sets out a range of employment strategies to enhance the cultural safety and inclusion in the workplace. The enterprise agreement and policies provide strong support for staff with diverse needs in terms of supportive paid and unpaid leave arrangements, access to flexible working arrangements, accommodations for special needs, and peer and professional support at no cost. The employment data shows programs have been effective to improve the number and diversity of staff in traditionally gender segregated workforces and from diverse genders, cultures and abilities. The strong takeup of benefits provided to support a diverse workforce indicates the popularity of these measures to assist staff to meet their whole person needs in connection with their employment at Wodonga Council.

Wodonga Council Annual Report 2020 - 2021

PROGRESS AGAINST OUR DISABILITY ACTION PLAN

The Disability Access Action Plan is a legislative requirement according to the Disability Act 2006 and is developed to identify actions to remove barriers for people with a disability and ensure that access and inclusion principles are considered in all responsibilities, activities and services of the council. During the 2020-2021 year, Wodonga Council undertook the following activities.

KEY PROJECTS • Funded under the Kindergarten Facilities Inclusion Grant program, the Stanley St and Jamieson Court preschools completed two infrastructure projects to improve access and inclusion. The Stanley St preschool had an expansion of the verandah for outdoor programs that will enable wheelchair access, an upgrade to the changing facilities to support children with additional needs and inclusion of laundry facilities. Jamieson Court preschool had an upgrade of the changing facilities. These projects support access and inclusion for children with additional needs • Jointly with AlburyCity, the councils’ access groups organised an online event which included a panel discussion with people that have lived experience of disability and live music by a local performer for International Day of People with Disabilities.

ONGOING • Continuing support for the Wodonga accessibility advisory group to strengthen council’s ability to identify and respond to accessibility issues. • Continue to comply with Australian and Building Regulations • Provide video captioning when posting videos in online channels • Implement local law requirements regarding access on High Street in CBA with regards to tables and chair placement.

Your council

• Wheelchair accessibility and service dogs welcome at the council’s arts and cultural venues. • The Cube Wodonga is an affiliate and operates under the Companion Card Scheme terms and conditions. • Hearing Loop and assistive hearing is available in council’s key cultural venues The Cube Wodonga and Hyphen – Wodonga Library Gallery. • Special needs seating is available at The Cube Wodonga including designated areas which allow people in wheelchairs or with walkers to sit beside their companions within the seating bank or to the side of seating bank with all access being flat floor. • Recruitment processes support diversity and inclusion, which is further complemented by induction processes and internal training programs. Modifications are made to recruitment processes when required to accommodate disability. • The council’s pre-employment screening process is not purely a determination of suitability (or not) for a role based on a candidate’s ability to meet the inherent requirements of a position, it also considers and allows us to safely on-board a candidate who may require workplace and/ or duty modifications based on their individual needs (which can include a disability). The preemployment screening creates an opportunity to assess a candidate against the role and mutually consider a successful and safe appointment. • Onsite health and wellbeing early intervention provides an opportunity to review and consider workplace and/or duty modifications based on an individual’s physical or psychological needs. The onsite, independent consultants, can provide support and guidance for the worker and the organisation on mutually suitable accommodations, as required. • A range of training as well as health and wellbeing initiatives are aimed at destigmatising differences between peers, both physical and psychological. This has created a more psychologically safe workplace whereby staff are comfortable to raise concerns.

Wodonga Council Annual Report 2020 - 2021

INVOLVING THE COMMUNITY IN DECISION-MAKING Community engagement in Wodonga looked different in 2020-2021. COVID-19 restrictions prevented face-to-face engagement for significant periods in 2019 and 2020 while the new Local Government Act 2020 put increasing importance on ensuring all residents have the opportunity to engage with the council on local priorities and the future of their community. In line with Local Government Act 2020 changes, council developed a new Community Engagement Policy and also asked the community to “Have a say on having a say”. In 2020-2021, the council sought feedback from the community on 29 matters. Those matters ranged from key strategic documents including a new Council Plan, the annual budget and a new Municipal Public Health and Wellbeing Plan to tourism, the arts, dog parks and playgrounds. The council worked with neighbouring AlburyCity to ask both communities how to best promote Albury-Wodonga to visitors under the Visit Albury Wodonga banner.

HOW COMMUNITY MEMBERS HAD THEIR SAY The council heard from community members through the Make Wodonga Yours online portal, workshops, drop-in sessions, a Community Conversations online panel, “Seats on the Street” face-toface sessions at key locations out in the community, formal submissions, emails, phone calls, interactive maps for comments, social media and letters in the post.

Your council

HOW COUNCIL ENCOURAGED COMMUNITY MEMBERS TO HAVE A SAY Council promoted opportunities to engage through public notices, media reports, social media posts, email newsletters, posters on community noticeboards and word of mouth.

IMAGINE BETTER – DEVELOPING OUR COUNCIL PLAN AND HEALTH PLAN DRAFT COUNCIL PLAN 2021-2025 To inform the draft Council Plan and Municipal Public Health and Wellbeing Plan, key strategic documents to guide decision-making over the next four years, council asked the community to imagine better. Council asked the community: • What are the important issues facing our city; • What are the needs and aspirations of the community; • What is important to you and what you want the council to focus on over the next four years; and, • What it looks like to live a good life in Wodonga and what’s next? The council asked the community to imagine better. All the feedback from two drop-in sessions, six stakeholder workshops, a shopfront, two open community workshops, a survey, an interactive online map and two Seats on the Street sessions and through the Make Wodonga Yours online portal, was collected, reviewed and used to develop a draft Council Plan 2021-2025. The draft outlined five key priority areas to improve outcomes for the community. • Strong, responsible and sound leadership • Sustainable and forward looking • Healthy, safe and resilient community • Connected and engaged community • Thriving and vibrant community That draft document was taken back to the community for further feedback. More than 1000 members of the community participated in the engagement process and the Council Plan 2021-2025 was adopted in June, 2021.

Wodonga Council Annual Report 2020 - 2021

OTHER ENGAGEMENT PROJECTS: Proposed update to Belvoir dog park Cultural Services Plan Wodonga 2033 Community Vision review Draft Revenue and Rating Plan 2021-2022 to 2024-2025 Draft Road Management Plan Review of Councillor and Mayoral Allowances Councillor Professional Development Policy Ernest Condon Playground Whenby Grange Playground Extension Dog park proposal Draft Community Engagement Policy Notice of intention to sell land x 4 Australia Day Award nominations 2020 Deck’d 2021 campaign Community Conversations Online Forum Marimba Park Playground Schorobura Park Relocation Common Seal – Local Law Governance Update - proposed policies Community Safety in parks Visit Albury-Wodonga community survey Physical Activity Survey Talking Dogs

Your council

COMMUNITY SATISFACTION SURVEY SNAPSHOT

Wodonga Council has built on its strong performance in the 2020 annual community satisfaction survey with another positive result in the 2021 results, despite the many impacts of COVID-19. The council’s overall performance measure was 67 – up two points on the previous year - compared to 60 for regional centres and 61 for the state averages. On all measures evaluated, the council’s performance was in line with or significantly higher than the regional centres and state averages. The statewide survey shows appearance of public areas, emergency management, waste management and art centres and library as councils’ top-performing areas. The survey also asked about the council’s COVID-19 response with the council receiving a score of 75 in line with the regional and state averages of 73. The survey, organised by Local Government Victoria, was undertaken in February and March this year. This is the sixth consecutive year the council has been participating in the state survey. In 2021, 66 of 79 councils took part.

SUMMARY OF CORE MEASURES Wodonga 2021

Wodonga 2020

Regional centres 2020

Statewide 2020

Overall Performance

Community Consultation

Advocacy

Making Community Decisions

Sealed Local Roads

Customer Service

Overall Council Direction

Performance measures

Wodonga Council Annual Report 2020 - 2021

OUR PERFORMANCE

Our performance

STRUCTURE OF THE COUNCIL PLAN The Council Plan outlines key strategies that the council proposes to deliver over it’s four-year term. It is used to plan for council’s services, major projects and budget allocations. The council will measure its progress towards achieving targets and report back to the community on an annual basis.

KEY FOCUS AREAS HEALTHY, SAFE AND RESILIENT COMMUNITY

CONNECTED AND ENGAGED COMMUNITY

SUSTAINABLE AND FORWARD-LOOKING

THRIVING AND VIBRANT CITY

STRONG, RESPONSIBLE AND SOUND ORGANISATION

Strategic Objective Improve the health and social outcomes for all people in Wodonga to create a healthy, safe, equitable and inclusive community.

Create a city that is wellconnected, informed and engaged, which supports people to meet, participate and move safely and easily to access services and opportunities.

Protect, enhance and manage our unique natural and built environments, planning for growth, demonstrating leadership and stewardship now and into the future.

Advance our position as a leading regional city, fostering opportunities for development and jobs, and building a destination that offers a variety of experiences, recognising our rich and diverse history and culture.

Provide strong leadership and governance, demonstrating excellence in the way we do business by being innovative, responsive and transparent. We will be accountable and steward the organisation with the highest regard.

Strategy Areas • Families, children and young people • Mental health • Being active • Healthy and safe food • Community safety • Emergency management

• Communications and engagement

• Managing assets

• Integrated and well-connected transport network

• Land use planning

• Inclusion, participation and access

• Community planning • Open spaces • Environmental management • Sustainable practices

• Arts and culture • History and heritage • Prospering tourism sector • Business and investment • Education, training and employment

• Good governance and customer experience • Financial management • Lobbying and advocacy

• Vibrant city centre

Annual plans will detail the actions to be undertaken for the strategy areas each year Progress is tracked by strategic indicators

Wodonga Council Annual Report 2020 - 2021

Our performance

 Completed

 In progress

Not started

Ensure young people are consulted and considered in matters that directly impact them.

Deliver high quality services that support, educate and improve the health and wellbeing of children and their families subject to federal and state government policies and funding arrangements.

1.1

1.2

ACTION



COMMENT

• Access to Early Learning children Home coaching being offered remotely 16 (annual Target 16)

• Early start kindergarten (ESK) enrollment 68;

• Preschool enrollments - 15 hour program 368;

• Supported playgroup 5 playgroups per week (Target 10 participants per term) average 10 participants, home coaching 6 clients per term (target participants 6 per term), playgroups recommenced late in 2020 under Covid safe plan;

• Enhanced Maternal and Child Health (EMCH) including Integrated Family Services (IFS): EMCH Total 2068 hours for the year (Annual Target 2307 ); IFS 1766 hours for the year (Annual Target is 1750 hours);

• Maternal and Child Health (MCH) service: There has been 569 birth notifications and 542 home visits completed for 2020-2021;

The early years team provide a range of services both universal and targeted for the children’s aged 0-6 years and their families.

Youth committee involved in developing a Youth in Politics camp in partnership with surrounding councils to deliver a range of skills and topics that impact young people. Youth designing content, in collaboration with local service providers, to be included in a Youth Leadership Program being delivered through 2021-2022 financial year.

Strategy 1: Families, children and young people

STATUS

STRATEGIC OBJECTIVE: IMPROVE THE HEALTH AND SOCIAL OUTCOMES FOR ALL PEOPLE IN WODONGA TO CREATE A HEALTHY, SAFE, EQUITABLE AND INCLUSIVE COMMUNITY

HEALTHY, SAFE AND RESILIENT COMMUNITY

How to read the Action Plan report: Each Council Plan action for year three is listed and reported against with a short comment and a status.

Wodonga Council Annual Report 2020 - 2021

Work with community partners to encourage and promote help-seeking behaviour of young people.

Participate in key campaigns to promote physical activity including Walk to School month, Ride to Work Day and Active April.

3.1

Participate in relevant networks at the local, state and regional level that support all our children and families and particularly the vulnerable.

2.1

1.3

ACTION



STATUS

National, state and local physical activity programs and initiatives are supported and shared regularly via the councils various communication platforms. Those programs already undertaken or supported are Walk to School, Ride to Work and Active April. Planning for 2021-2022 physical activity program and promotions has commenced.

Strategy 3: Being active

Established a drop-in space in partnership with headspace and Felltimber Community Centre for young people 18 to 25 as a social group to consult and plan programs that meet the needs of young people. Developed a Youth Leadership Program in partnership with ACRE to deliver across August through to December

Strategy 2: Mental health

• Access to Early Learning governance group Quarterly Remotely

• Breastfeeding working group Monthly

• Vulnerable families committee Monthly

• High risk infant panel Quarterly

• Getting ahead working group Monthly

• Local Aboriginal Education Consultative Group

• Ovens and Murray Koorie team meeting Quarterly

• Ovens Murray Child and Family Services Alliance Executive and Operations Remotely Bi-monthly

• Out of Home Care working group On Hold

• Area Implementation Group Compact Remotely Quarterly

• Primary care and population health Advisory group On Hold

• Northeast LGA early years group Quarterly

• Victorian Maternal and Child Health Coordinators Group Remotely Quarterly

• Early Years Management Remote Quarterly

• Early Years Strategy Compact Remote Quarterly

• Early childhood education stakeholder reform group December 2020

Participation in networks and meetings include:

COMMENT

Our performance

Commence stage 1 of the Baranduda Fields sporting precinct.

Support and promote the inclusion and participation in community and sporting activities and programs for CALD, female-friendly, aged and other vulnerable population groups.

Participate in preventative programs and awareness campaigns and work with key partners in responding to family violence including elder abuse and promoting gender equity.

Plan and install improved lighting along pathways and in public spaces.

Ensure available information on emergency preparation and assistance is relevant and up-todate.

3.2

3.3

4.1

4.2

5.1

ACTION



STATUS

All emergency management plans are up to date and most have recently been updated to include reference to COVID -19

Strategy 5: Emergency management

2020-2021 Program of works will be completed by November 30, 2020.

• International Women’s Day: developed and promoted a series of short films highlighting remarkable women in the Wodonga community. The videos had 1809 views, 84 likes, 22 comments, and 18 shares.

• Reflect Respect Seedlings Campaign: Intersecting with the 16 days of activism, promoted the Reflect Respect campaign by producing seed packets with Reflect Respect messaging. The campaign was featured in the MAV newsletter and replicated by Towong Shire Council.

• 16 Days of Activism: developed and co-ordinated a calendar of events and community programs.

With key partners including the Victorian Police and Department of Education council led Wodonga’s Prevention of Family Violence Taskforce (PFVT). The PFVT has provided collective advocacy for the municipality and strategic support to deliver actions outlined in councils PFVT action plan. In partnership with the PFVT, council has delivered the following preventive campaigns:

Strategy 4: Community safety

Council has continued to support and promote inclusion and participation opportunities for our community by securing additional female-friendly infrastructure funding for Martin Park (Les Cheesly Oval) pavilion redevelopment. This project will deliver female-friendly and inclusive facilities. During the review of the Wodonga Physical Activity Strategy 2015 - 2020 we have engaged with our with our key stakeholders including our CALD, aged and other vulnerable community groups to seek their feedback on the previous plan and also provide input into the next strategy. The Draft 2021 - 2026 Physical Activity Strategy will be presented to council for community consultation at the July council meeting.

Civil works tender will be presented to the July 2021 meeting of council for award. Tree removal works have commenced on site. Canvas Projects and SportENG have been engaged to design the soccer pavilion and fields. Cultural Heritage Management plan is commenced.

COMMENT

STRATEGIC INDICATORS OUTCOMES • A more resilient community • Opportunities and services for all families and young people • An informed and safe community • Increased opportunities for people to be active

20172018

20182019

20192020

20202021

Percentage of the community who feel safe on streets alone

95.1% during day 55.7% after dark

76.3% after dark#

Satisfaction with the enforcement of local laws

Percentage of community at increased lifetime risk of alcohol-related harm

71%

73%

66.7%#

56.8% for fruit 97.1% for vegetables

61% for fruit 95% for vegetables

62.4% for fruit and vegatables#

52.3%

62%

37%#

87.04%

100.98%

100%

Percentage of infant community who do not meet dietary guidelines for breastfeeding

88.3%

61.4%*

65%

65.2%

Percentage of students who feel connected to school

71.3%

Number of family violence incidents per 100,000 population

1793.5

2056

1782.3

Percentage of family violence incidents where children and young people are involved as other parties

Approx. 40%

21%+

26%

• Health and safe food choices for all

Percentage of community who do not meet dietary guidelines for either fruit or vegetable consumption Percentage of community who do not meet physical activity guidelines Percentage of required food safety assessments undertaken Satisfaction with emergency management performance

Some indicators are only measured every two or four years * There has been a significant change in the way this data is reported and collected following the introduction of CDIS + Change in the data reporting # Data now only available at DHHS area level - Ovens-Murray

Wodonga Council Annual Report 2020 - 2021

Our performance

Inform the community about the council’s events and activities through a broad range of communications channels.

Continue to run consultation activities to ensure the community has a say on issues that affect or are of importance to them.

Develop an integrated transport model to better understand traffic movements - pedestrian, cycling, public transport and vehicular - across the city.

6.1

6.2

7.1

ACTION

Engagement activities included consultation around dogs in public areas, physical activity, tourism, community safety in parks, governance update, land sales, playgrounds, the Deck’d campaign, physical activity, new community engagement policy, draft Cultural Services Plan and a campaign to inform the next Council Plan and Health Plan. The year was rounded out by consultations for the draft budget and Council Plan, Road Management Plan, Rating and Revenue Plan, a road deviation, community revision review, councillor allowances and the proposal for changes at the Belvoir Park dog park.

Information shared through council channels and advertising including dedicated COVID-19 updates for community and business. Promotion of online activities at The Cube Wodonga, library, Australia Day and Upstream 2021 as well as current consultation activities.



The tender for this project has been awarded and the building of the model has commenced, with a practical completion due in January 2021. Testing will then commence. Testing has been completed. Project is ready for implementation.

Strategy 7: Integrated and well-connected transport network



COMMENT

Strategy 6: Communications and engagement

STATUS

CREATE A CITY THAT IS WELL-CONNECTED, INFORMED AND ENGAGED, WHICH SUPPORTS PEOPLE TO MEET, PARTICIPATE AND MOVE SAFELY AND EASILY TO ACCESS SERVICES AND OPPORTUNITIES.

CONNECTED AND ENGAGED COMMUNITY

Wodonga Council Annual Report 2020 - 2021

8.2

8.1

Offer and promote a range of volunteering opportunities to increase community participation in city events and activities.

Deliver a range of events and public programs in diverse locations and facilities that allow the community to engage, connect and express themselves.

ACTION



COMMENT

Due to COVID-19 council has limited opportunities to facilitate volunteering, however, has continued to stay in contact with volunteers via the volunteer newsletter and communications. Council is currently updating and renewing volunteer registrations and requirements in preparation for when the cities events and activities resume. Some of councils volunteer opportunities have recommenced in 2021, this will continue to expand as COVID-19 restrictions ease and the operations that engage those volunteers resume. The 2021 Volunteer Awards were filmed and hosted online, with the winners of the awards including the 2C1C and mayoral award during National Volunteer week. A personal message to Wodonga Volunteers from the CEO of Volunteer Australia was delivered as part of the online event. There is currently 232 registered volunteers, that have undertaken 358 hours across council operations. Due to COVID-19 restrictions this is significantly down from last years 247 volunteers and 1803 hours.

• The Albury Wodonga Public Art Trail was created as a legacy piece of Upstream festival. A combined trail between Albury and Wodonga highlighting more than 70 pieces of public art.

• The community professional development program was delivered in partnership with Murray Arts; one workshop was presented – ‘Writing for the Web’ with Dan Kauffman.

• Two new sculptures were installed; Yvonne Georges Suitcases at the Bonegilla Siding and Dean Bowen installed two Smiling Kookaburras on High St .

• Three large mural artworks were also created for the Upstream Festival of Art + Culture 2021; these murals can be found on Hovell St, South St and Elgin Boulevard Wodonga.

• Through the Working for Victoria Program, council secured mural artist Kasper who has created seven mural artworks across the city.

• The Cultural Development Program delivered Open Galleries light box installations at The Cube Wodonga and Waves, street art piano installation and an ephemeral art installation on the gantry at Christmas.

• The Event Attraction Contribution Program supported two events in 2020-2021 with an estimated total direct and indirect effect of $1.96 million to the Albury Wodonga economy.

• Council’s calendar of events for 2020-2021 delivered a program of live and online events; 10 events were delivered including, Albury Wodonga NAIDOC, Wodonga Carols, Upstream Festival of Art + Culture, Sustainable Living Festival, Australia Day and 6 Community Pizza Oven bakes. In addition, Albury Wodonga also hosted the 2021 Inland Rail Conference in conjunction with AlburyCity. These events and activities attracted approximately 13,950 people over the year.

Strategy 8: Inclusion, participation and access

STATUS

Our performance

Support local organisations through the provision of a community grants program to assist groups to meet identified community needs.

Continue to work with the ethnic community to increase connection and inclusion and support opportunities for all people to be involved in community life, especially the aged through the delivery of a key focus project.

8.3

8.4

ACTION



STATUS

Seniors Participation Project (DHHS funded) is on target with a project lead recruited and focus groups and a community forum planned in August 2021. Collaborating to deliver Connecting Cultures program with Albury Wodonga Ethnic Community Council, Mungabareena Aboriginal Corporation & Gateway Health

• Sponsorships and Donations - 6 applications submitted, 4 awarded

• Community Partnership Program - 3 applications received, 1 awarded

• Community Infrastructure Grants - 13 applications received, 9 awarded

• Community Impact Grants - 21 applications received, 15 awarded

Two Community Impact Grant (CIG) rounds were completed and the Sponsorship and Donation Program was provided throughout the year. A total of 43 applications were received under all programs and 29 were awarded. This consisted of:

COMMENT

STRATEGIC INDICATORS OUTCOMES • An informed and engaged community • Well-connected roads, footpaths and transport networks • Inclusion and participation opportunities for all

20172018

20182019

20192020

20202021

Community satisfaction with community consultation and engagement

Community satisfaction with the maintenance of sealed roads

Community satisfaction with local streets and footpaths

Satisfaction with how council informs the community

11.32%

10.79%

10.37%

8.45%

4.19

4.60

3.29

2.09

21.8%

48%

• Accessible services for all community

Active library members in municipality

Number of times a library resource is borrowed

Community satisfaction with community and cultural activities

Percentage of community who help as volunteers

Percentage of people who believe multiculturalism makes life better

Some indicators are only measured every two or four years

Wodonga Council Annual Report 2020 - 2021

Our performance

Deliver a strategic program to renew, upgrade and build community assets that is informed by data analysis and good service planning to meet the current and future needs of the community.

Undertake a feasibility study to investigate and develop opportunities with young people for contemporary, best-practice, youth-friendly spaces.

Develop a set of custom tree management guidelines unique to Wodonga to strategically manage and maintain the city’s green scape.

Investigate the feasibility of a native vegetation offset scheme on council land.

9.1

10.1

11.1

11.2

ACTION









STATUS

Assessment of feasibility is underway based on potential sites identified by staff. Sites have been assessed by an accredited assessor and recommendations from this assessment are under consideration by staff to determine ultimate viability of potential sites.

Have been drafted and awaiting adpotion. Exec have approved and is now being formalised.

Strategy 11: Open spaces

• Mapped services that offer youth-friendly spaces

• Utilising youth drop in program at Felltimber Community Centre to further understand from young people their requirements for youth-friendly spaces

• Reviewed studies undertaken by surrounding local government areas, such as Benalla and Mansfield

Strategy 10: Community planning

Strategic Asset Management continues to work through asset condition assessments for the purpose of updating the 10 year renewal programming for each asset category. The stormwater drainage condition assessment and Level 3 bridge inspections are completed. The strategic asset improvement program actions are continuing to be delivered. The Road Management Plan and Asset Management Policy are both currently being reviewed in line with the development of the new Council Plan.

Strategy 9: Managing assets

COMMENT

PROTECT, ENHANCE AND MANAGE OUR UNIQUE NATURAL AND BUILT ENVIRONMENTS, PLANNING FOR GROWTH, DEMONSTRATING LEADERSHIP AND STEWARDSHIP NOW AND INTO THE FUTURE..

SUSTAINABLE AND FORWARD LOOKING

Wodonga Council Annual Report 2020 - 2021

Promote public use and responsible management of the natural environment.

Deliver key priority actions for environmental spaces including the hills and Gateway Island.

Further investigate ways for the council to reduce its carbon footprint through energy efficient programs.

Investigate and determine the viability of waste to energy technologies to attract such industries to Wodonga.

Continue to participate in programs that embed waste management practices that increase rates of recycling, reuse and waste reduction.

Investigate sustainable options for future proofing the city and its key assets.

Develop a domestic wastewater management plan to ensure the safe operations of all domestic waste water systems occurs, particularly in sensitive areas.

12.1

12.2

13.1

13.2

13.3

13.4

13.5

ACTION







STATUS

Development of the new domestic waste water plan commenced early in the year. The project is quite involved and with funding now being made available, will continue in earnest in the coming year.

Additional renewable energy options are being researched for council assets and support provided to planning staff to encourage ESD measures are incorporated in developments.

Council is the second largest participant in the Halve Waste program. Numerous projects have been undertaken during the year to embed good waste practices to reduce waste and increase rates of recycling.

Research to date has highlighted there is no current viable waste to energy plant suited for our small population readily available. However, at least one company has received Victorian EPA approval and we are in discussions with them regarding a smaller scale version.

Azility software measures all council energy and water accounts, and calculates greenhouse gas emissions. This software provides the platform to prioritize the higher energy use council buildings with energy efficient measures. Cube had additional 75kW photovoltaics solar panels (total 95kW) installed in April 2021. A power purchase agreement with 46 Victorian Councils was signed in May 2021, which will provide Wodonga Council with 100 per cent renewable energy for all electricity usage from July 1, 2021.

Strategy 13: Sustainable practices

Fencing of identified erosion areas and revegetation plots on Huon and Klings have been completed, with revegetation works occurring in August. Klings Hill Mountain Bike climb trail construction completed, trail and emergency service wayfinding and some park furniture has been installed. Trail head signage being finalised..

Council continue to works with our local friends of groups to look after and maintain our urban parks and natural areas. In partnership with WULN we continue to focus on raising environmental awareness, promotion of group activities, advocating for new groups and additional membership to existing groups, and implementing actions from the Wodonga Regional Waterways Action Plan.

Strategy 12: Environmental management

COMMENT

STRATEGIC INDICATORS OUTCOMES • Plan for a liveable and prosperous city • Protect and nurture the environment through environmentally friendly practices • Increase pathways into housing for all our people

20172018

20182019

20192020

20202021

Community satisfaction with the council’s environmental sustainability performance

Community satisfaction with waste management performance

71.43%

70.06%

71.25%

72.64%

Community satisfaction with the appearance of public areas

Community satisfaction with planning for population growth in the area

35.2%

• Assets are appropriately maintained and fit for purpose

Kerbside collection waste diverted from landfill

Percentage of people experiencing mortgage and rental stress

Some indicators are only measured every two or four years

Our performance

Wodonga Council Annual Report 2020 - 2021

16.2

16.1

Deliver a new library-gallery that is accessible and fit-forpurpose, meets the needs of our growing community and provides a program of arts and culture to our residents and visitors.

Activate the city through culture venue programs, events and space activation that encourage community access and participation.

ACTION





STATUS

Building redevelopment works in progress and on track, operational planning and systems in progress and on track.

In the 2020-2021 year to date (June 2021) the four venues; Bonegilla Migrant Experience, Arts Space Wodonga, The Wodonga Library and The Cube Wodonga; hosted a total of 467 events with 19,803 participants and over 102,225 visitors across all of the sites. Due to COVID-19 the events and attendance at each of the four venues has been significantly reduced. Please note that due to COVID restrictions The Cube Wodonga, the Wodonga Library and the Bonegilla Migrant Experience were closed to the public due to Stage 3 restrictions on the 6th August 2020. The Wodonga Library reopened for limited service on October 26. Arts Space Wodonga activities have been placed on hold due to current restrictions and building renovations. The Cube Wodonga remained open for the delivery of essential services only and reopened to the public and started hosting external event from November 16th in line with government restrictions with a restricted capacity of 75% since February. All venues closed again due to COVID-19 restriction on May 28, with the Library remaining open for click and collect, and then reopened with the Cube on June 4, both with restricted capacities. This significantly impacted both the overall attendance and event delivery across all services.

Strategy 16: Arts and culture

COMMENT

ADVANCE OUR POSITION AS A LEADING REGIONAL CITY, FOSTERING OPPORTUNITIES FOR DEVELOPMENT AND JOBS, AND BUILDING A DESTINATION THAT OFFERS A VARIETY OF EXPERIENCES, RECOGNISING OUR RICH AND DIVERSE HISTORY AND CULTURE

THRIVING AND VIBRANT CITY

Our performance

Deliver a major arts and cultural festival across Albury-Wodonga that attracts visitation and offers new experiences to our community.

Complete the second stage of the Wodonga Heritage Study to identify and protect places of heritage significance.

16.3

17.1

ACTION





STATUS

Wodonga Heritage Study Stage 2B has been completed; Stage 2C has commenced and is due to conclude in February 2021. The project is progressing well, although has experienced some slight delay due to holiday period which slowed down the site inspections. The project is expected to be completed by the end of June 2021. Delivery of this report is anticipated in July 2021

Strategy 17: History and heritage

4: Community expression artworks – Yard Art - This competition welcomed entries from local residents and businesses in the Albury-Wodonga council areas encouraging creative expression with the wider community, held in people’s front yards or businesses and mapped digitally for visiting/ walking tours.

3: Exploration tracks, trails and treasure hunts - Featuring ‘Whimsy’ six small night-time projections and ‘Rewilding the City’ a temporary paste up project featuring local wild life images throughout the Wodonga CBD. An online, map with clues was developed to encourage self-guided tours for all ages.

2. Legacy mural artworks:

1. Live, online and pre-recorded events to audiences:

Key Activities Delivered:

There was a diverse program with over 33 events, activities and workshops on offer with approx. 4000 attendance in per person, with another 4000+ engaging online. This consisted of paste-up artworks, light projections, dance, circus, music, physical theatre, artist workshops, exhibitions, storytime, cabaret performances, along with a wearable art fashion show.

The delivery of activities for this year were shared with attendees via “at your leisure” participation, free and ticketed online and live event performances and activities.

The Upstream - Festival of Art + Culture was held from February 27 to March 8, 2021, with a key focus on the Victorian long weekend from March 5 to 8, 2021.

COMMENT

Wodonga Council Annual Report 2020 - 2021

18.1

Develop a tourism investment prospectus based on the opportunities in the Destination Management Plan to market the Border’s tourism development potential.

Work with the tourism industry to position Wodonga’s tourism product and services and strengthen visitor attraction to the City.

ACTION





STATUS

The Tourism Investment Prospectus project is in progress. The scope of this project is to encourage investment in the region’s visitor economy by developing an investment prospectus that can be provided to potential investors, developers, and government agencies. Final report is due August 2021.

The Visit AlburyWodonga team have been working with our tourism partners on professional development opportunities currently hosted by Murray Regional Tourism, Victorian Tourism Industry Council and Tourism Australia. Murray Regional Tourism (MRT) is continuing the: ‘Love The Murray’ campaign. This aligns with Destination NSW’s Now’s the Time to Love NSW campaign and future projects with Visit Victoria. The Visit Albury Wodonga team are partnering with 2AY and the Joss Group to drive local and out of region visitation to Albury Wodonga, in support of our local businesses. The regional radio campaign will go into market from 19 November 2020. The new Tourism Partner program was launched on Tuesday, March 30, 2021 with the new Inspiration Guide and VAW maps to be launched in July 2021. The VAW team delivered the Community Awareness Campaign, to promote to the local community the important role the visitor economy plays in the region and why tourism needs strong support. The objective of the campaign is to demonstrate the value of tourism to the community via economic, social and livability benefits. The campaign was in market from the March 6 to end April 2021.

Strategy 18: Prospering tourism sector

COMMENT

STRATEGIC INDICATORS OUTCOMES • Celebrate our unique culture and heritage • Foster a thriving visitation and tourism sector • A strong economy • A vibrant City Heart

20172018

20182019

20192020

20202021

Community satisfaction with arts centres and library

Community satisfaction with business and community development and tourism

People who completed a higher education qualification

25.8%

Proportion of young people aged 19 years who have attained Year 12 or equivalent

90.1%

Economic benefit of tourism for Albury-Wodonga

$814m

$812m

$1.006bn

$518m

Number of domestic day trip visitors - all purposes

791,000

1.065m

983,000

686,000

Number of domestic overnight visitor trips - all purposes

651,000

635,000

830,000

301,000

Growth rate of Wodonga’s labour force

-2.9%

-9.9%

9.60%

6.03%

Wodonga’s unemployment rate

4.1%

4.43%

5.3%

4.3%

• Cultural and event participation

Some indicators are only measured every two or four years

Our performance

STATUS

COMMENT

Provide accountable and transparent financial practices with a strong financial planning framework

Continue to lobby state and federal governments for funding towards projects of regional significance such as the Baranduda Fields sporting precinct.

23.2

Continue to undertake a program of service review to assess the appropriateness, effectiveness and efficiency of services while ensuring equity and access.

22.2

23.1

Ensure outcomes of council meetings are readily accessible to members of the community.

Continuous improvement initiatives have continued to be identified during the year end reporting processes. Improvement initiatives have been implemented in procurement and performance statement reporting processes. Staff vacancy has delayed progress and initiatives will recommence once recruitment processes have been finalised.



Participation in Regional Deals has positioned council well to take advantage of future funding opportunities. There are currently several projects that have been submitted to the executive board for Regional deals and are now awaiting approval through the Joint Ministerial Committee to form part of the Deal. There is a suite of projects that have been developed in the pipeline to apply for funding such as COVID19 recovery funding opportunities. Applications for accelerated planning funding submitted to be considered for an EOI process. In summary, council continues to look for opportunities to progress priority projects with the assistance of funding.

Improvements in financial systems are continuing to be rolled out, with the CIAnywhere Supply Chain software that includes online purchase orders progressing. Actions from internal audit recommendations continue to be delivered to improve Council’s financial practices. Draft 2021-2022 Budget documents were approved for public consultation at th May council meeting and adopted at the June meeting.

Strategy 23: Financial management



Council meetings are live streamed and the video recording is available on the council YouTube page. Minutes are issued within 48 hours of the meeting and published on the council’s website. Media releases are issued depending on meeting content.

Strategy 22: Good governance and customer experience

22.1

ACTION

PROVIDE STRONG LEADERSHIP AND GOVERNANCE, DEMONSTRATING EXCELLENCE IN THE WAY WE DO BUSINESS BY BEING INNOVATIVE, RESPONSIVE AND TRANSPARENT. WE WILL BE ACCOUNTABLE AND STEWARD THE ORGANISATION WITH THE HIGHEST REGARD

STRONG, RESPONSIBLE AND SOUND ORGANISATION P

Wodonga Council Annual Report 2020 - 2021

Our performance



STATUS

Work with all levels of government and regional partners to deliver a Regional Deal for AlburyWodonga.

Work with the business and community advisory committee to advance the AlburyWodonga Regional Deal.

24.2



COMMENT Federal meetings held with Member for Indi, Helen Haines, and Senator Bridget McKenzie, DPM, Senator Hume and Minister Gee. Victorian government meetings held with Minister Symes, Minister Thomas, Minister Pulford and upper house member for north east Victoria, Tim Quilty, plus various meetings with chiefs of staff, Regional Cities Victoria, Hume RDA, Development Victoria, and Victorian Planning Authority. Re-instated regular meetings with Bill Tilley.

A report was submitted to the August council meeting and it was resolved that: 1. The Mayor of the day represent Council on the Joint Ministerial Committee for our Regional Deal; 2. Progress reports be provided to Council on the work of the Joint Ministerial Committee; and, 3. Any agreement under the Regional Deal requiring a change in strategic direction, or a financial commitment by Council, must be approved at a meeting of Council. The CEO has played a lead role in the Executive Board meetings all year.

Considerable support to the Regional Deal as an Executive Board Member and representative on many working groups.

Strategy 24: Regional partnerships and collaboration

Continue to lobby for grant funding to deliver priority projects, infrastructure and services to improve the health and wellbeing of our community.

24.1

23.3

ACTION

STRATEGIC INDICATORS OUTCOMES • An ethically responsible organisation • Strong and responsible corporate and financial management • Lobby and advocate for community needs • Strive for organisational excellence

20172018

20182019

20192020

20202021

Councillor attendance at council meetings

97.14%

93.75%

96.64%

96.43%

2.65%

9.21%

10.61%

6.85%

Community satisfaction with customer service

Community satisfaction with decisions made in the interest of the community

Community satisfaction with lobbying on behalf of the community

Council decisions made at meetings closed to the public

Some indicators are only measured every two or four years

Wodonga Council Annual Report 2020 - 2021

Our performance

GOVERNANCE

The Wodonga Council is constituted under the Local Government Act 1989 and the Local Government Act 2020. Councils are expected to provide good governance by adhering to a number of overarching governance principles, which are listed below. • Council decisions are to be made and actions taken in accordance with the relevant law. • Priority is to be given to achieving the best outcomes for the municipal community, including future generations. • The economic, social and environmental sustainability of the municipal district, including mitigation and planning for climate change risks, is to be promoted.

The council is committed to effective and sustainable forms of democratic and corporate governance as the key to ensuring that council and its administration meet the community’s priorities. The community has many opportunities to provide input into council’s decision-making processes including community consultation. The council’s formal decision-making processes are conducted through council meetings. The council delegates the majority of its decisionmaking to council staff. These delegations are exercised in accordance with adopted council policies and guidelines.

• The municipal community is to be engaged in strategic planning and strategic decisionmaking. • Innovation and continuous improvement is to be pursued. • Collaboration with other councils, governments and statutory bodies is to be sought. • The ongoing financial viability of the council is to be ensured. • Regional, state and national plans and policies are to be taken into account in strategic planning and decision making. • The transparency of council decisions, actions and information is to be ensured.

Wodonga Council Annual Report 2020 - 2021

MEETINGS OF THE COUNCIL

COMMITTEES

Council conducts public meetings every month, usually on the third Monday, commencing at 6pm.

Sections 63, 64 and 65 of the Local Government Act 2020 (LGA 2020) allow councils to establish delegated committees, joint delegated committees and community asset committees. In 2020-2021 there were no committees established under these provisions.

Members of the community are welcome to attend these meetings and observe from the gallery. The meetings are also live-streamed on the council’s YouTube channel. The video recording of the meeting is also available for subsequent viewing. Council meetings also provide the opportunity for community members to submit a written question to the council. For the 2020-2021 year, 16 council meetings were held, comprising 12 fixed meetings (formerly ordinary meetings) and four non-fixed meetings (formerly special meetings). The following table provides a summary of councillor attendance at council meetings for the 2020–2021 financial year. NONFIXED MEETING

TOTAL

9 of 12

4 of 4

11 of 12

4 of 4

Danny Lowe

4 of 4

2 of 2

Ron Mildren

12 of 12

4 of 4

Brian Mitchell

4 of 4

2 of 2

Kev Poulton

8 of 8

2 of 2

Olga Quilty

8 of 8

2 of 2

Graeme Simpfendorfer

8 of 8

2 of 2

Anna Speedie

4 of 4

2 of 2

John Watson

12 of 12

4 of 4

Kat Bennett Libby Hall

NB: A councillor should be counted as having attended an ordinary or special council meeting where a councillor is late to a meeting, is on an approved leave of absence or a vacancy has been created due to resignations, death, failure to take the oath of office or going out of office under section 28(3) of the Act.

Our performance

The council adopted a revised Councillor Code of Conduct at its meeting held on Monday, February 22, 2021. The Code: • Sets out the standards of conduct expected of Wodonga councillors; • Endeavours to foster good working relations between councillors to enable councillors to work constructively together in the best interests of the Wodonga community; and, • Establishes a process for dispute resolution.

FIXED MEETING

COUNCILLORS

CODE OF CONDUCT

LOCAL LAW The council’s Governance Rules commenced on September 1, 2020. The Governance Rules: 1. Establish a framework for decision-making; 2. Regulate and control the conduct of meetings of the council and delegated committees and community asset committees; 3. Establish rules for the disclosure of a conflict of interest; and, 4. Require the reporting of informal meetings of councillors.

CONFLICT OF INTEREST

COUNCILLOR ALLOWANCES

Councillors are elected by the residents and ratepayers to act in the best interests of the community. This is a position of trust that requires councillors to act in the public interest.

Mayors and councillors are entitled to receive an allowance while performing their duties as an elected official. Pursuant to section 39 of the Local Government Act 2020 (LGA 2020), allowances for the mayor, deputy mayor and councillors are provided in accordance with a Determination of the Victorian Independent Remuneration Tribunal under the Victorian Independent Remuneration Tribunal and Improving Parliamentary Standards Act 2019.

When a council delegates its powers to a council officer or a committee, the committee or officer also needs to act in the public interest. A conflict of interest occurs when a personal or private interest might compromise the ability to act in the public interest. A conflict of interest exists even if no improper act results from it. The council has a comprehensive procedure in place to accommodate the disclosure of a conflict of interest. Declaration of a conflict of interest is a standard agenda item for all Council meetings and informal meetings of councillors. While the procedures vary depending on the particular role and circumstances, in general they involve disclosing the relevant interests in a specific way and then stepping aside from the relevant decision-making process or from the exercise of the public duty. During 2020–2021, 15 conflicts of interest were declared at council meetings and three were declared at informal meetings of councillors. Further, councillors are required to submit a Personal Interests Return in which they are required to declare any interests. These returns are submitted twice yearly.

Despite the repeal of the allowance provisions under the Local Government Act 1989 (LGA 1989), those sections of LGA 1989 continue to apply in respect of allowances until such time as the first Determination is made by the Victorian Independent Remuneration Tribunal. Section 39(6) of LGA 2020 provides for this transitional arrangement. For the 12-month period July 1, 2020 to June 30, 2021 the councillor allowance was set at $26,245 per annum and the mayoral allowance was $81,204 per annum. NB: The Minister for Local Government determined that there would be no increase to allowances in 2020-2021. The following table contains a summary of the allowances paid to each councillor during the year. NB: these amounts include an amount equivalent to the superannuation levy.

Councillor

Allowance $

Kat Bennett

26,904.06

Libby Hall

26,904.06

Danny Lowe

9,072.93

Ron Mildren

26,904.06

Brian Mitchell

9,072.93

Kev Poulton

55,170.81

Olga Quilty

17,831.13

Graeme Simpfendorfer

17,831.13

Anna Speedie

28,072.30

John Watson

26,904.06

Wodonga Council Annual Report 2020 - 2021

COUNCILLOR EXPENSES

AUDIT AND RISK COMMITTEE

In accordance with s.40 of LGA2020, the council is required to reimburse a councillor for expenses incurred while performing his or her duties as a councillor. The council is also required to adopt and maintain a policy in relation to the reimbursement of expenses for councillors (s.41 of LGA2020). The policy provides guidance for the payment of reimbursements of expenses and the provision of resources, facilities and other support to the mayor and councillors to enable them to discharge their duties. The council also publishes in its annual report the details of the expenses, including reimbursement of expenses for each councillor and member of a council committee paid by the council.

As part of the council’s governance obligations to its community, the council has constituted an Audit and Risk Committee to facilitate:

The details of the expenses including reimbursement of expenses for each councillor and member of a council committee paid by the council for the 2020-2021 year are set out in the following table.

DETAILS OF COUNCILLOR EXPENSES Travel

Professional development

Other

1250

3537

533

2389

3626

Danny Lowe

1179

Ron Mildren

419

2389

3616

1179

2538

2389

2729

Olga Quilty

1250

2358

Graeme Simpfendorfer

1250

2500

Anna Speedie

1193

John Watson

1250

3577

Councillor Kat Bennett Libby Hall

Brian Mitchell Kev Poulton

Note: No expenses were paid by council, including reimbursements, to members of council committees during the year.

Our performance

• Enhancement of the credibility and objectivity of internal and external financial reporting; • Effective management of financial and other risks and the protection of council assets; • Compliance with laws and regulations as well as use of best practice guidelines; • The effectiveness of the internal audit function; and, • The provision of an effective means of communication between the external auditor, internal audit, management and the council. The Audit and Risk Committee consists of one councillor and three external independent members. Cr Brian Mitchell was the councillor representative from July 1, 2020 until October, 24, 2020. Cr Olga Quilty was the councillor representative from November 30, 2020 to June 30, 2021. External independent members are appointed for a three-year term, with the chair elected from among the external independent members. The external independent members in 2020-2021 were Belinda Olejniczak (July 2020 to November 2020), David Pendleton, Robyn Gillis (August 2020 to June 2021) and David Kortum (January 2021 to June 2021). The Internal Auditor and the Director Finance and Systems attend all meetings, and the Chief Executive Officer attends when possible. Other management representatives attend as required to present reports. The Audit and Risk Committee meets at least quarterly. Recommendations from each Audit and Risk Committee meeting are subsequently reported to, and considered by the council.

STATUTORY INFORMATION

PUBLIC INTEREST DISCLOSURE PROCEDURES

The following information is provided in accordance with legislative and other requirements applying to council.

The Public Interest Disclosures Act 2012 aims to ensure openness and accountability in government by encouraging people to disclose improper conduct within the public sector and provide protection for people who make disclosures.

DOCUMENTS AVAILABLE FOR PUBLIC INSPECTION In accordance with sections 57 and 58 of LGA2020, the council adopted a Public Transparency Policy at its meeting on August 17, 2020. The policy stipulates the types of documents available to the public, to ensure openness with decision making and council processes, as well as listing the types of documents that remain confidential.

Procedures on how to make a disclosure are publicly available on the council’s website. During the 2020-2021 year no disclosures were notified to council officers appointed to receive disclosures, or to IBAC.

FREEDOM OF INFORMATION Access to documents may be obtained through written request to the Freedom of Information Officer, as detailed in section 17 of the Freedom of Information Act 1982 and in summary as follows. • It should be in writing • It should identify as clearly as possible which document is being requested • It should be accompanied by the appropriate application fee (the fee may be waived in certain circumstances) Requests for documents in the possession of the council should be addressed to the Freedom of Information Officer. Access charges may also apply once documents have been processed and a decision on access is made (eg. photocopying and search and retrieval charges). Further information regarding FOI can be found at ovic.foi.vic.gov.au and on the Wodonga Council website.

Wodonga Council Annual Report 2020 - 2021

PERFORMANCE STATEMENT

FOR THE YEAR ENDED JUNE 30, 2021

DESCRIPTION OF MUNICIPALITY Wodonga is strategically placed on the Hume Highway between Melbourne and Sydney. The North East Victorian municipality includes 13 localities and covers an area of 433.7 square kilometres. The main industries include manufacturing, health care and social assistance, public administration and safety, retail and trade, education and training. The council area has a population of 42,662 and is the fastestgrowing centre in the North East.

OPERATIONAL SUMMARY This year’s performance results overall indicate that, despite ongoing COVID pandemic constraints (see commentary under COVID-19), Wodonga Council has continued to deliver services while focussing on infrastructure renewal and upgrade. Overall Community satisfaction with council decisions increased this year. Work on the new Wodonga Library and Arts Space continued throughout the year and the new building ‘Hyphen’ was officially opened in August 2021. In addition, expenditure on asset renewal and upgrade across many infrastructure areas such as playgrounds, sporting facilities, roads, bridges and buildings increased by 84%. Council received 18% more planning applications in the 2020-2021 financial year than the previous year reflecting the city’s current strong growth and development trajectory. This growth has had flow on effects to service delivery demand with 285 additional households requiring waste collection services and 568 birth notifications received by the maternal health service. Service delivery costs have remained within acceptable ranges across these areas. Council’s land, buildings and parks, open space and streetscape assets were revalued during the year which has increased non-current assets on Council’s Balance Sheet and correspondingly the value of infrastructure per head of population has increased significantly.

COVID-19 The COVID-19 pandemic has continued to affect everyone in our community including front-line workers who deliver our services. To keep everyone safe, some council services such as events, community centres, performing arts venues, aquatics centres, library and playgrounds were closed, while others such as youth and maternal and child health took their programs online. Fortunately, some of the council’s front-line services, such as waste collection and road construction, were able to continue as normal with little impact on services. Some of the actions in this report have been affected by the COVID-19 pandemic in some way, mostly as the result of some operations being closed and scheduled community events being cancelled. However, a significant amount of actions and services were able to continue through a shift to remote delivery. The continuing lockdowns and restrictions have unfortunately led to a number of businesses in Wodonga having permanently closed.

Our performance

Wodonga Council Annual Report 2020 - 2021

81.18

Population density per length of road [Municipal population / Kilometres of local roads]

16.21%

Workforce Turnover Percentage of staff turnover [Number of permanent staff resignations and terminations / Average number of permanent staff for the financial year] x 100

A good, structured work environment and effective recruiting is resulting in a healthy staff turnover rate. COVID-19 pandemic restrictions resulted in fewer staff resignations due to the stable employment environment in local government.

Council receives no aged care and HACC grants so this indicator is less than the state average.

Council receives no aged care and HACC user fees so this indicator is less than the state average.

Capital increased in 2021 from an increase in capital projects funded from state government stimulus grants.

Council does not provide aged care and HACC services so this indicator is lower than the state average. Higher due to projects funded from state government stimulus grants in 2020 and 2021.

Material Variations

“population” means the resident population estimated by council

“local road” means a sealed or unsealed road for which the council is the responsible road authority under the Road Management Act 2004

“infrastructure” means non-current property, plant and equipment excluding land

“unrestricted cash” means all cash and cash equivalents other than restricted cash.

“SEIFA” means the Socio-Economic Indexes for Areas published from time to time by the Australian Bureau of Statistics on its Internet website

“relative socio-economic disadvantage”, in relation to a municipality, means the relative socio-economic disadvantage, expressed as a decile for the relevant financial year, of the area in which the municipality is located according to the Index of Relative Socio-Economic Disadvantage (Catalogue Number 2033.0.55.001) of SEIFA

7.92%

4.00

$265.90

$1,261.71

81.11

$10,583.70

$1,802.87

2021

(b) non-monetary asset contributions; and

11.50%

4.00

$254.50

$1,253.19

82.76

$9,686.48

$1,634.60

2020

“own-source revenue” means adjusted underlying revenue other than revenue that is not under the control of council (including government grants)

14.96%

4.00

$256.9

$1,304.50

79.18

$9,200.05

$1,436.39

2019

RESULTS

“adjusted underlying revenue” means total income other than: (a) non-recurrent grants used to fund capital expenditure; and

DEFINITIONS

4.00

$263.76

Disadvantage Relative Socio-Economic Disadvantage [Index of Relative Socio-Economic Disadvantage by decile]

Recurrent grants Recurrent grants per head of municipal population [Recurrent grants / Municipal population]

$1,269.01

$8,570.58

Infrastructure per head of municipal population [Value of infrastructure / Municipal population]

Own-source revenue Own-source revenue per head of municipal population [Own-source revenue / Municipal population]

$1,411.03

2018

Population Expenses per head of municipal population [Total expenses / Municipal population]

Indicator/Measure

SUSTAINABLE CAPACITY INDICATORS FOR THE YEAR ENDED JUNE 30, 2021

Our performance

[Number of active library members / Municipal population] x100

Active library members

Participation

Libraries

[Community satisfaction rating out of 100 with how council has performed in making decisions in the interest of the community]

Satisfaction with council decisions

Satisfaction

Governance

[Number of critical non-compliance outcome notifications and major non-compliance notifications about a food premises followed up / Number of critical non-compliance outcome notifications and major non-compliance notifications about a food premises] x100

Critical and major non-compliance outcome notifications

Health and safety

Food Safety

[Number of successful animal management prosecutions]

Animal management prosecutions

Health and safety

Animal Management

[Number of visits to aquatic facilities / Municipal population]

Utilisation of aquatic facilities

Utilisation

Aquatic Facilities

Service/Indicator/Measure

11.32%

57.00

71.64%

New in 2020

8.67

2018

RESULTS

10.79%

51.00

98.81%

New in 2020

8.43

2019

SERVICE PERFORMANCE INDICATORS FOR THE YEAR ENDED JUNE 30, 2021

10.37%

59.00

100.00%

5.72

2020

8.45%

60.00

100.00%

100%

3.55

2021

COVID pandemic closures and operating out of a small temporary space during the year impacted the number of active library borrowers. Active library borrowers were lower than the previous year by 1,290 people. It is anticipated this number will increase in the 2021-2022 year following the opening of the new library/gallery (Hyphen) in August 2021.

There were no animal management prosecutions in the financial year ended 30 June 2020 and only one prosecution in the year ended 30 June 2021.

Aquatic facility attendances were drastically reduced in 2021 due to multiple COVID pandemic closures.

Material Variations

Wodonga Council Annual Report 2020 - 2021

[Number of VCAT decisions that did not set aside council’s decision in relation to a planning application / Number of VCAT decisions in relation to planning applications] x100

Council planning decisions upheld at VCAT

Decision making

Statutory Planning

[Community satisfaction rating out of 100 with how council has performed on the condition of sealed local roads]

Satisfaction with sealed local roads

Satisfaction

Roads

[Number of Aboriginal children who attend the MCH service at least once (in the year) / Number of Aboriginal children enrolled in the MCH service] x100

Participation in the MCH service by Aboriginal children

Participation

[Number of children who attend the MCH service at least once (in the year) / Number of children enrolled in the MCH service] x100

Participation in the MCH service

Participation

Maternal and Child Health (MCH)

Service/Indicator/Measure

0.00%

65.00

71.91%

73.39%

2018

RESULTS

100.00%

64.00

76.04%

72.54%

2019

0.00%

68.00

75.17%

74.79%

2020

100.00%

67.00

63.99%

72.56%

2021

There were two VCAT applications made during the year and Council’s decision was upheld on both occasions. There were no VCAT decisions in relation to planning applications in the 2020 financial year.

Participation dropped by 14% during the period measured, which may be due to the COVID pandemic lockdowns. Telehealth consultations and other remote service delivery methods have been offered during this time. The service was also in a transition period with data previously provided to the Council by an Aboriginal Community Controlled Health Organisation. Data will now be directed to the Child Development Information System.

Participation dropped by 3% during the period, which may be due to the COVID pandemic and lockdown effects. Telehealth consultations and other remote service delivery methods have been offered during this time.

Material Variations

Our performance 71.43%

Waste Collection Waste diversion - Kerbside collection waste diverted from landfill [Weight of recyclables and green organics collected from kerbside bins / Weight of garbage, recyclables and green organics collected from kerbside bins] x100

Council has a successful 3-bin system, including weekly food organics / garden organics bin collections and fortnightly general waste and recycling bin collections.

Material Variations

“critical non-compliance outcome notification” means a notification received by council under section 19N(3) or (4) of the Food Act 1984, or advice given to council by an authorized officer under that Act, of a deficiency that poses an immediate serious threat to public health

“class 2 food premises” means food premises, within the meaning of the Food Act 1984, that have been declared as class 2 food premises under section 19C of that Act

“class 1 food premises” means food premises, within the meaning of the Food Act 1984, that have been declared as class 1 food premises under section 19C of that Act

“CALD” means culturally and linguistically diverse

“annual report” means an annual report prepared by a council under sections 98 of the Act

“active library member” means a member of a library who has borrowed a book from the library

“MCH” means the Maternal and Child Health Service provided by a council to support the health and development of children within the municipality from birth until school age “population” means the resident population estimated by council

“major non-compliance outcome notification” means a notification received by a council under section 19N(3) or (4) of the Food Act 1984, or advice given to council by an authorised officer under that Act, of a deficiency that does not pose an immediate serious threat to public health but may do so if no remedial action is taken

“local road” means a sealed or unsealed road for which the council is the responsible road authority under the Road Management Act 2004

72.64%

2021

“Aboriginal person” has the same meaning as in the Aboriginal Heritage Act 2006

71.25%

2020

“food premises” has the same meaning as in the Food Act 1984

70.06%

2019

“Aboriginal child” means a child who is an Aboriginal person

DEFINITIONS

2018

Service/Indicator/Measure

RESULTS

Wodonga Council Annual Report 2020 - 2021

209.50%

Unrestricted cash Unrestricted cash compared to current liabilities [Unrestricted cash / Current liabilities] x100

$3,061.62

Expenditure level Expenses per property assessment [Total expenses / Number of property assessments]

299.70%

New in 2020

Efficiency Revenue level Average residential rate per residential property assessment [General rates and Municipal charges / Number of property assessments]

Liquidity Working capital Current assets compared to current liabilities [Current assets / Current liabilities] x100

2018

Dimension/Indicator/Measure

2021

$1,991.08 $2,045.52

2020

228.73%

335.57%

193.91%

325.87%

111.74%

329.69%

$3,025.47 $3,428.65 $3,868.91

New in 2020

2019

FINANCIAL PERFORMANCE INDICATORS FOR THE YEAR ENDED JUNE 30, 2021

48.44%

157.52%

$3,042.13

$2,015.32

2022

43.08%

120.98%

3,100.86

$2,057.38

2023

2,172.58

2025

Increase in rates of 1.5% plus growth from supplementary rate additions valued higher than the average property value.

Material Variations

43.08%

121.09%

54.17%

128.65%

Cash balances vary as a result of funding commitments over the long term financial plan. Cash to fund Council’s share of large, multi-year capital projects, such as Hyphen and Baranduda Fields, can cause unrestricted cash balances to appear high.

In line with prior year. Incomplete or delayed capital projects from the 2020-2021 year and the funds held for their completion have resulted in a high working capital ratio. The completion of these carry-over projects together with the 2021-2022 capital program will see a substantial drop in Councils working capital ratio in future years.

The 12.84% increase is primarily due to a one-off $15.5m land, building and Parks, Open Space and Streetscape asset impairment following revaluations of those asset $3,180.14 $3,279.57 categories during the 2021 financial year. Expenses per property assessment is usually below the state average due to Council not providing aged care and HACC services.

2,116.43

2024

Our performance 49.44%

6.81%

45.42%

10.26%

70.47%

Loans and borrowings repayments compared to rates [Interest and principal repayments on interest bearing loans and borrowings / Rate revenue] x100

Indebtedness Non-current liabilities compared to own source revenue [Non-current liabilities / Own source revenue] x100

Operating position Adjusted underlying result Adjusted underlying surplus (or deficit) [Adjusted underlying surplus (deficit)/ Adjusted underlying revenue] x100

Stability Rates concentration Rates compared to adjusted underlying revenue [Rate revenue / Adjusted underlying revenue] x100

New in 2020

2018

Loans and borrowings Loans and borrowings compared to rates [Interest bearing loans and borrowings / Rate revenue] x100

[Asset renewal expense / Asset depreciation] x100

Obligations Asset renewal Asset renewal compared to depreciation

Dimension/Indicator/Measure

69.43%

10.27%

39.30%

6.68%

44.44%

New in 2020

2019

72.05%

(7.81)%

43.52%

6.78%

40.46%

100.52%

2020

66.99%

(10.28%)

41.18%

6.69%

35.69%

184.65%

2021

72.88%

4.31%

38.55%

6.48%

38.24%

38.88%

2022

74.01%

2.89%

36.48%

7.03%

32.49%

69.52%

2023

74.20%

2.62%

32.93%

4.93%

28.78%

86.69%

2024

74.39%

1.78%

29.35%

4.87%

25.07%

64.63%

2025

The $15.5 million Land, Building and Parks, Open Space and Streetscape asset revaluation impairments have impacted the adjusted underlying result. These are one-off non-cash accounting adjustments.

No new borrowings, loan balance reduces in line with repayments.

Loans are reducing in line with scheduled repayment plans, whilst rate revenue has increased due to growth.

Renewal works in 2021 included some carry-over works from 2020 delayed due to COVID pandemic restrictions. Timing of major renewal projects such as the replacement of Lawrence Street bridge has also resulted in a higher asset renewal expense in 2020-2021, by bringing forward bridge renewal funds from future years. This has resulted in lower forecast asset renewal ratios, in particular in the 2021-2022 year.

Material Variations

Wodonga Council Annual Report 2020 - 2021

0.75%

Rates effort Rates compared to property values [Rate revenue / Capital improved value of rateable properties in the municipality] x100

45.08%

$1,903.38

2.00

0.68%

2019

Retired in 2020

0.66%

2020

DEFINITIONS “adjusted underlying revenue” means total income other than— (a) non-recurrent grants used to fund capital expenditure; and (b) non-monetary asset contributions; and (c) contributions to fund capital expenditure from sources other than those referred to in paragraphs (a) and (b) “adjusted underlying surplus (or deficit)” means adjusted underlying revenue less total expenditure “asset renewal expenditure” means expenditure on an existing asset or on replacing an existing asset that returns the service capability of the asset to its original capability “current assets” has the same meaning as in the AAS “current liabilities” has the same meaning as in the AAS “non-current assets” means all assets other than current assets “non-current liabilities” means all liabilities other than current liabilities “non-recurrent grant” means a grant obtained on the condition that it be expended in a specified manner and is not expected to be received again during the period covered by a council’s Strategic Resource Plan

35.58%

$2,095.58

Efficiency Revenue level Average residential rate per residential property assessment [Rate revenue / Capital improved value of rateable properties in the municipality] x100 obligations

Asset renewal Asset renewal compared to depreciation [Asset renewal expense / Asset depreciation] x100

0.00

Animal Management Health and safety Animal management prosecutions [Number of successful animal management prosecutions]

Retired Indicators

2018

Dimension/Indicator/Measure

0.63%

2022

0.65%

2023

0.66%

2024

0.68%

2025

This measure was replaced by O5 from 1 July 2019.

This measure was replaced by E4 from 1 July 2019.

This measure was replaced by AM7 from 1 July 2019.

Comments

Material Variations

“own-source revenue” means adjusted underlying revenue other than revenue that is not under the control of council (including government grants “population “means the resident population estimated by council “rate revenue” means revenue from general rates, municipal charges, service rates and service charges “recurrent grant “means a grant other than a non-recurrent grant “residential rates” means revenue from general rates, municipal charges, service rates and service charges levied on residential properties “restricted cash” means cash and cash equivalents, within the meaning of the AAS, that are not available for use other than for a purpose for which it is restricted, and includes cash to be used to fund capital works expenditure from the previous financial year “unrestricted cash” means all cash and cash equivalents other than restricted cash.

Retired in 2020

0.64%

2021

OTHER INFORMATION

BASIS OF PREPARATION

Council is required to prepare and include a performance statement within its annual report. The performance statement includes the results of the prescribed sustainable capacity, service performance and financial performance indicators and measures together with a description of the municipal district and an explanation of material variations in the results. This statement has been prepared to meet the requirements of the Local Government Act 1989 and Local Government (Planning and Reporting) Regulations 2014 (as per the transitional provisions of the Local Government Act 2020).

The performance statement presents the actual results for the current year and for the prescribed financial performance indicators and measures, the results forecast by the council’s strategic resource plan. The Local Government (Planning and Reporting) Regulations 2014 requires explanation of any material variations in the results contained in the performance statement. The council has adopted materiality thresholds relevant to each indicator and measure and explanations have not been provided for variations below the materiality thresholds unless the variance is considered to be material because of its nature.

Where applicable the results in the performance statement have been prepared on accounting bases consistent with those reported in the Financial Statements. The other results are based on information drawn from council information systems or from third parties (e.g. Australian Bureau of Statistics).

The forecast figures included in the performance statement are those adopted by the council in its annual Budget 2021-2022 on June 29, 2021. The annual Budget includes estimates based on key assumptions about the future that were relevant at the time of adoption and aimed at achieving sustainability over the long term. Detailed information on the actual financial results is contained in the General Purpose Financial Statements. The strategic resource plan can be obtained by contacting the council.

Our performance

CERTIFICATION OF THE PERFORMANCE STATEMENT

Wodonga Council Annual Report 2020 - 2021

Independent Auditor’s Report To the Councillors of Wodonga City Council Opinion

I have audited the accompanying performance statement of Wodonga City Council (the council) which comprises the:

     

description of municipality for the year ended 30 June 2021 sustainable capacity indicators for the year ended 30 June 2021 service performance indicators for the year ended 30 June 2021 financial performance indicators for the year ended 30 June 2021 other information and the certification of the performance statement.

In my opinion, the performance statement presents fairly, in all material respects, the performance of the council for the year ended 30 June 2021 in accordance with the performance reporting requirements of Part 6 of the Local Government Act 1989. Basis for Opinion

I have conducted my audit in accordance with the Audit Act 1994 which incorporates the Australian Standards on Assurance Engagements. I further describe my responsibilities under that Act and those standards in the Auditor’s Responsibilities for the Audit of the performance statement section of my report. My independence is established by the Constitution Act 1975. I and my staff are independent of the council in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to my audit of the performance statement in Victoria and have also fulfilled our other ethical responsibilities in accordance with the Code. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Councillors' responsibilities for the performance statement

The Councillors are responsible for the preparation and fair presentation of the performance statement in accordance with the performance reporting requirements of the Local Government Act 1989 and for such internal control as the Councillors determine is necessary to enable the preparation and fair presentation of the statement of performance that is free from material misstatement, whether due to fraud or error.

Auditor’s responsibilities for the audit of the performance statement

As required by the Audit Act 1994, my responsibility is to express an opinion on the performance statement based on the audit. My objectives for the audit are to obtain reasonable assurance about whether the performance statement as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Standards on Assurance Engagements will always detect a material misstatement when it exists.

Our performance

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the decisions of users taken on the basis of this performance statement. As part of an audit in accordance with the Australian Standards on Assurance Engagements, I exercise professional judgement and maintain professional scepticism throughout the audit. I also: 



identify and assess the risks of material misstatement of performance statement, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the council’s internal control evaluate the overall presentation, structure and content of the performance statement, including the disclosures, and whether performance statement represents the underlying events and results in a manner that achieves fair presentation.

I communicate with the Councillors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

MELBOURNE 24 October 2021

Sanchu Chummar as delegate for the Auditor-General of Victoria

Wodonga Council Annual Report 2020 - 2021

Our performance 42.07%

New in 2020

AM5 Animals rehomed [Number of animals rehomed / Number of animals collected] x100

1.35

Service standard AM2 Animals reclaimed [Number of animals reclaimed / Number of animals collected] x100

ANIMAL MANAGEMENT Timeliness AM1 Time taken to action animal management requests Number of days between receipt and first response action for all animal management requests / Number of animal management requests]

New in 2020

8.67

Utilisation AF6 Utilisation of aquatic facilities [Number of visits to aquatic facilities / Municipal population]

Service cost AF7 Cost of aquatic facilities [Direct cost of aquatic facilities less income received / Number of visits to aquatic facilities]

5.00

2018

AQUATIC FACILITIES Service standard AF2 Health inspections of aquatic facilities [Number of authorised officer inspections of Council aquatic facilities / Number of Council aquatic facilities]

Service/Indicator/Measure

SERVICE PERFORMANCE INDICATORS

REPORT OF OPERATIONS

New in 2020

59.60%

1.26

New in 2020

8.43

2.50

2019

27.02%

65.06%

1.24

$3.96

5.72

5.50

2020

21.31%

74.60%

1.33

$6.18

3.55

3.50

2021

Material Variations

The decrease in rehoming rates is due to fewer animals available for rehoming as a result of an increase in reclamation rates. The total percentage of animals reclaimed and rehomed has increased to 95.9%

The continued increase in reclaiming rates is welcomed. The total percentage of animals reclaimed and rehomed has increased to 95.9%.

The direct cost of Wodonga’s aquatic facilities is in line with previous years. However, the increase in costs per visit is due to reduced attendances as a result of COVID pandemic lockdowns. In addition, Wodonga WAVES had a shorter season to enable maintenance.

Aquatic facility attendances were drastically reduced in 2021 due to multiple COVID pandemic closures.

There were fewer inspections carried out during the year as the facility was closed for large periods due to the COVID pandemic.

RESULTS

Wodonga Council Annual Report 2020 - 2021

71.64%

$402.81

Service cost FS3 Cost of food safety service [Direct cost of the of the food safety service / Number of food premises registered or notified in accordance with the Food Act 1984]

Health and safety FS4 Critical and major non-compliance outcome notifications

87.04%

FS2 Food safety assessments [Number of registered class 1 food premises and class 2 food premises that receive an annual food safety assessment in accordance with the Food Act 1984 / Number of registered class 1 food premises and class 2 food premises that require an annual food safety assessment in accordance with the Food Act 1984] x100

[Number of days between receipt and first response action for all food complaints / Number of food complaints]

FS1 Time taken to action food complaints

2.22

New in 2020

Health and Safety AM7 Animal management prosecutions Number of successful animal management prosecutions / Number of animal management prosecutions] x 100

FOOD AND SAFETY Timeliness

New in 2020

2018

Service cost AM6 Cost of animal management service per population [Direct cost of the animal management service / Population]

Service/Indicator/Measure

98.91%

$482.18

100.98%

1.45

New in 2020

2019

100.00%

$519.32

100.00%

1.16

0.00%

$11.31

2020

100.00%

$438.68

100.00%

2.22

100.00%

$13.27

2021

Material Variations

Staff costs were lower as a result of vacancies during the year.

COVID pandemic restrictions made it difficult to undertake investigations as promptly as in prior years.

There were no animal management prosecutions in the financial year ended 30 June 2020 and only one prosecution in the year ended 30 June 2021.

There were increased contract costs for pound services and increased vehicle costs due to lease of a new ranger vehicle with animal handling fit-out.

RESULTS

Our performance

Satisfaction G5 Satisfaction with council decisions [Community satisfaction rating out of 100 with how council has performed in making decisions in the interest of the community] 57.00

$43,734.43

97.14%

Attendance G3 Councillor attendance at council meetings [The sum of the number of Councillors who attended each ordinary and special Council meeting / (Number of ordinary and special Council meetings) × (Number of Councillors elected at the last Council general election)] x100

Service cost G4 Cost of elected representation [Direct cost of the governance service / Number of Councillors elected at the last Council general election]

58.00

2.65%

2018

Consultation and engagement G2 Satisfaction with community consultation and engagement Community satisfaction rating out of 100 with how Council has performed on community consultation and engagement

[Number of Council resolutions made at ordinary or special meetings of Council, or at meetings of a special committee consisting only of Councillors, closed to the public / Number of Council resolutions made at ordinary or special meetings of Council or at meetings of a special committee consisting only of Councillors ] x100

G1 Council decisions made at meetings closed to the public

GOVERNANCE Transparency

Service/Indicator/Measure

51.00

$53,231.14

93.75%

53.00

9.21%

2019

59.00

$45,843.71

96.94%

59.00

10.61%

2020

60.00

$53,126.14

96.43%

60.00

6.85%

2021

Material Variations

Increase in costs associated with a first-year council, including councillor induction training, together with election costs only incurred once every four years.

There were fewer commercial-in-confidence reports presented to the council in the 2020-2021 financial year.

RESULTS

Wodonga Council Annual Report 2020 - 2021

[Number of children who attend the MCH service at least once (in the year) / Number of children enrolled in the MCH service] x100

MC4 Participation in the MCH service

Participation

[Cost of the MCH service / Hours worked by MCH nurses]

MC3 Cost of the MCH service

Service cost

[Number of infants enrolled in the MCH service (from birth notifications received) / Number of birth notifications received] x100

MC2 Infant enrolments in the MCH service

MATERNAL AND CHILD HEALTH (MCH) Service standard

[Direct cost of the library service / Population]

LB5 Cost of library service per population

Service cost

[Number of active library borrowers in the last three years / The sum of the population for the last three years] x100

LB4 Active library borrowers in municipality

Participation

[Number of library collection items purchased in the last 5 years / Number of library collection items] x100

LB2 Recently purchased library collection

Resource standard

[Number of physical library collection item loans / Number of physical library collection items]

LB1 Physical library collection usage

LIBRARY Utilisation

Service/Indicator/Measure

73.39%

$84.00

101.09%

New in 2020

11.32%

65.74%

4.19

2018

72.54%

$78.76

101.59%

New in 2020

10.79

75.41%

4.60

2019

74.79%

$77.07

100.54%

$16.75

10.37%

74.77%

3.29

2020

72.56%

$76.04

101.61%

$17.39

8.45%

77.21%

2.09

2021

Material Variations

For the period 1 July 2020 to 30 June 2021, there were 568 birth notifications and 559 infants enrolled in the Wodonga Council’s Maternal and Child Health service. This is a high level of participation and remains steady.

COVID pandemic closures and operating out of a small temporary space during the year impacted the number of active library borrowers. Active library borrowers were lower than the previous year by 1,290 people. It is anticipated that this number will increase in the 2021-2022 year following the opening of the new library/gallery (Hyphen) in August 2021.

A small increase in library collection purchases in preparation for the new Library opening in August 2021.

COVID pandemic closures and operating out of a small temporary space during the year impacted the number of physical library collection item loans.

RESULTS

Our performance

[Community satisfaction rating out of 100 with how council has performed on the condition of sealed local roads]

R5 Satisfaction with sealed local roads

Satisfaction

[Direct cost of sealed local road resealing / Square metres of sealed local roads resealed]

R4 Cost of sealed local road resealing

Service cost

[Direct cost of sealed local road reconstruction / Square metres of sealed local roads reconstructed]

R3 Cost of sealed local road reconstruction

Service cost

[Number of kilometres of sealed local roads below the renewal intervention level set by Council / Kilometres of sealed local roads] x100

R2 Sealed local roads maintained to condition standards

Condition

[Number of sealed local road requests / Kilometres of sealed local roads ] x100

R1 Sealed local road requests

ROADS Satisfaction of use

[Number of 4-week key age and stage visits / Number of birth notifications received] x100

MC6 Participation in 4-week Key Age and Stage visit

Satisfaction

[Number of Aboriginal children who attend the MCH service at least once (in the year) / Number of Aboriginal children enrolled in the MCH service] x100

MC5 Participation in the MCH service by Aboriginal children

Participation

Service/Indicator/Measure

65.00

$5.83

$84.63

97.44%

33.33

New in 2020

71.91%

2018

64.00

$6.70

$38.50

97.67%

34.93

New in 2020

76.04%

2019

68.00

$6.12

$43.64

98.88%

23.32

97.84%

75.17%

2020

67.00

$6.84

$35.73

99.12%

17.25

91.77%

63.99%

2021

Material Variations

This is well above the satisfaction with sealed local roads for similar sized councils and the state average.

This is well below the state average, reflecting value for money for Wodonga ratepayers.

Costs to reconstruct sealed local roads during the year are considered to be within acceptable ranges and indicate that an efficient and effective road maintenance service is being provided to the Wodonga Community. This is well below the state average, reflecting value for money for Wodonga ratepayers.

During the year ended 30 June 2021, Wodonga Council has achieved a 99% rating for maintaining sealed roads to condition standards. This is an excellent result.

Sealed local road requests were much lower over the period from 1 July 2020 to 30 June 2021, which is in direct correlation to the 99.12% rating for ‘Sealed local roads maintained to condition standards’ indicator. This is well below the number of requests for similar sized councils and the state average.

Participation rates for the 4-week Key Age and Stage Assessments remain high at 92%. This is a 7.9% drop from the previous year and may be due to the COVID pandemic lockdowns. Telehealth consultations and other remote service delivery methods have been offered during this time.

Participation dropped by 14% which may be due to the COVID pandemic lockdowns. Telehealth consultations and other remote service delivery methods have been offered during this time. The service was also in a transition period with data previously provided to the Council by an Aboriginal Community Controlled Health Organisation. Data will now be directed to the Child Development Information System.

RESULTS

Wodonga Council Annual Report 2020 - 2021

[Number of kerbside garbage and recycling collection bins missed / Number of scheduled kerbside garbage and recycling collection bin lifts] x10,000

WC2 Kerbside collection bins missed

Service standard

[Number of kerbside garbage and recycling bin collection requests / Number of kerbside bin collection households] x1000

WC1 Kerbside bin collection requests

WASTE COLLECTION Satisfaction

[Number of VCAT decisions that did not set aside council’s decision in relation to a planning application / Number of VCAT decisions in relation to planning applications] x100

SP4 Council planning decisions upheld at VCAT

Decision making

[Direct cost of the statutory planning service / Number of planning applications received]

SP3 Cost of statutory planning service

Service cost

[(Number of regular planning application decisions made within 60 days) + (Number of VicSmart planning application decisions made within 10 days) / Number of planning application decisions made] x100

SP2 Planning applications decided within required time frames

Service standard

[The median number of days between receipt of a planning application and a decision on the application]

SP1 Time taken to decide planning applications

STATUTORY PLANNING Timeliness

Service/Indicator/Measure

5.70

143.19

0.00%

$2,587.91

81.22%

38.00

2018

4.72

130.09

100.00%

$3,942.24

87.20%

45.00

2019

4.86

162.59

0.00%

$4,265.38

83.76%

48.00

2020

2.99

146.11

100.00%

$4,196.12

72.60%

53.00

2021

Material Variations

Collections missed are much lower than for the previous annual period indicating a responsive and well performing garbage collection service.

Bin collection requests were lower in the 2021 year. The decrease in collection requests could be as a result of the COVID pandemic and more people being at home.

There were two VCAT applications made during the year and Council’s decision was approved on both occasions. There were no VCAT decisions in relation to planning applications in the 2020 financial year.

Higher than normal legal fees were incurred, associated with successfully defending VCAT cases.

The percentage of regular and VicSmart planning application decisions made within legislated timeframes decreased by 13%. This decrease is reflective of the increased number of applications received during the last 12 months and the challenges of working from home arrangements during the COVID pandemic.

The median number of days between receipt of a planning application and a decision on the application has slightly increased over the previous period (five-day increase). The increase can be attributed to a much greater number of applications received.

RESULTS

Our performance

Weight of recyclables and green organics collected from kerbside bins / Weight of garbage, recyclables and green organics collected from kerbside bins] x100

WC5 Kerbside collection waste diverted from landfill

Waste diversion

[Direct cost of the kerbside recyclables bin collection service / Number of kerbside recyclables collection bins]

WC4 Cost of kerbside recyclables collection service

Service cost

[Direct cost of the kerbside garbage bin collection service / Number of kerbside garbage collection bins]

WC3 Cost of kerbside garbage bin collection service

Service cost

Service/Indicator/Measure

71.43%

$28.98

$57.97

2018

70.06%

$41.12

$62.10

2019

71.25%

$43.08

$68.03

2020

72.64%

$45.18

$67.88

2021

Material Variations

Wodonga Council’s successful 3-bin system, including alternate fortnightly general waste and recycling bins and a weekly food organics / garden organics bin, has resulted in the waste diverted from landfill being one of the highest in the state.

RESULTS

Wodonga Council Annual Report 2020 - 2021

[Number of first MCH home visits / Number of birth notifications received] x100

MC1 Participation in first MCH home visit

MATERNAL AND CHILD HEALTH (MCH) Satisfaction

LB3 [Direct cost of the library service / Number of visits]

LIBRARIES Service cost

[Direct cost of the animal management service / Number of registered animals] [Number of successful animal management prosecutions]

AM4 Animal management prosecutions

Health and safety

[Direct cost of the animal management service / Number of registered animals]

AM3 Cost of animal management service

ANIMAL MANAGEMENT Service cost

[Direct cost of outdoor aquatic facilities less income received / Number of visits to outdoor aquatic facilities]

AF5 Cost of outdoor aquatic facilities

[Direct cost of indoor aquatic facilities less income received / Number of visits to indoor aquatic facilities]

AF4 Cost of indoor aquatic facilities

AQUATIC FACILITIES Service cost

Service/Indicator/Measure

RETIRED INDICATORS

99.3%

$4.86

$44.53

$5.82

$2.80

2018

98.4%

$5.28

$52.55

$7.41

$2.05

2019

Retired in 2020

2020

Retired in 2020

2021

Material Variations

This measure was replaced by LB5 from 1 July 2019.

This measure was replaced by AM7 from 1 July 2019.

This measure was replaced by AM6 from 1 July 2019.

This measure was replaced by AF7 from 1 July 2019.

RESULTS

GOVERNANCE AND MANAGEMENT ITEMS COMMUNITY ENGAGEMENT POLICY (Policy outlining council’s commitment to engaging with the community on matters of public interest)

ASSESSMENT Policy Date of operation of current policy: February 22, 2021 Replaced previous policy to meet the requirements of the Local Government Act 2020

COMMUNITY ENGAGEMENT GUIDELINES

Guidelines

(Guidelines to assist staff to determine when and how to engage with the community)

Date of operation of current guidelines: October 1, 2015

FINANCIAL PLAN (Plan under section 91 of the Act outlining the financial and non-financial resources required for at least the next 10 financial years)

Adopted in accordance with section 91 of the Act Date of adoption: October 18, 2021

ANNUAL BUDGET (Plan under section 130 of the Act setting out the services to be provided and initiatives to be undertaken over the next 12 months and the funding and other resources required)

Adopted in accordance with section 130 of the Act Date of adoption: June 29, 2021

Plans Date of operation of current plans: Road Asset Plan - October 20, 2014

ASSET MANAGEMENT PLANS

Road Management Plan – June 28, 2021

(Plans that set out the asset maintenance and renewal needs for key infrastructure asset classes for at least the next 10 years)

Footpath Asset Plan - November 17, 2014 Bridge and Major Culvert Asset Management Plan – September 19, 2016 Stormwater Drainage Asset Management Plan – December 11, 2017 Building Asset Management Plan – July 20, 2020

REVENUE AND RATING PLAN

Plan

(Strategy setting out the rating structure of Council to levy rates and charges)

Date of operation of current strategy: June 29, 2021

RISK POLICY (Policy outlining Council’s commitment and approach to minimising the risks to Council’s operations)

Policy Date of operation of current policy: August 8, 2017

FRAUD POLICY

Policy

(Policy outlining council’s commitment and approach to minimising the risk of fraud)

Date of operation of current policy: December 21, 2020

Our performance

GOVERNANCE AND MANAGEMENT ITEMS

ASSESSMENT

MUNICIPAL EMERGENCY MANAGEMENT PLAN (Plan under section 20 of the Emergency Management Act 1986 for emergency prevention, response and recovery)

PROCUREMENT POLICY

Prepared and maintained in accordance with section 20 of the Emergency Management Act 1986 Date of preparation: June 25, 2018

Prepared and approved in accordance with s. 186A of the Local Government Act 1989

(Policy under section 186A of the Local Government Act 1989 outlining the matters, practices and procedures that will apply to all purchases of goods, services and works)

Date of approval: June 29, 2021

BUSINESS CONTINUITY PLAN

Plan

(Plan setting out the actions that will be undertaken to ensure that key services continue to operate in the event of a disaster)

Date of operation of current plan: May 24, 2019

DISASTER RECOVERY PLAN

Pandemic Business Continuity Plan established: March, 2020 Plan

(Plan setting out the actions that will be undertaken to recover and restore business capability in the event of a disaster)

Date of operation of current plan: May 24, 2019 Framework

RISK MANAGEMENT FRAMEWORK

Date of operation of current framework: June 22, 2015

(Framework outlining council’s approach to managing risks to the Council’s operations)

Risk register updated: February, 2021

AUDIT AND RISK COMMITTEE (Advisory committee of council under section 53 and 54 of the Act)

INTERNAL AUDIT

Established in accordance with section 53 and 54 of the Act Audit and Risk Committee Charter adopted August 17, 2020

Engaged

(Independent accounting professionals engaged by the council to provide analyses and recommendations aimed at improving council’s governance, risk and management controls)

Date of engagement of current provider: May 29, 2017

PERFORMANCE REPORTING FRAMEWORK (A set of indicators measuring financial and nonfinancial performance, including the performance indicators referred to in section 131 of the Act)

COUNCIL PLAN REPORTING (Report reviewing the performance of the council against the Council Plan, including the results in relation to the strategic indicators, for the first six months of the financial year)

Framework Date of operation of current framework: July 1, 2014

Reports Date report presented: November 30, 2020, March 15, 2021, and May 17, 2021

Wodonga Council Annual Report 2020 - 2021

GOVERNANCE AND MANAGEMENT ITEMS

ASSESSMENT

FINANCIAL REPORTING

Statements presented to council in accordance with section 138(1) of the Act Date statements presented:

(Quarterly statements to council under section 138 of the Act comparing budgeted revenue and expenditure with actual revenue and expenditure)

July 20, 2020, October 19, 2020, November 30, 2020, December 21, 2020, January 25, 2021, February 22, 2021, March 15, 2021, April 19, 2021, May 17, 2021, June 29, 2021

RISK REPORTING

Reports

(Six-monthly reports of strategic risks to council’s operations, their likelihood and consequences of occurring and risk minimisation strategies)

Date reports presented:

PERFORMANCE REPORTING (Six-monthly reports of indicators measuring the results against financial and non-financial performance, including performance indicators referred to in section 131 of the Act)

ANNUAL REPORT (Annual report under sections 131, 132 and 133 of the Act to the community containing a report of operations and audited financial and performance statements)

COUNCILLOR CODE OF CONDUCT (Code under section 76C of the Act setting out the conduct principles and the dispute resolution processes to be followed by councillors)

DELEGATIONS (A document setting out the powers, duties and functions of council and the Chief Executive Officer that have been delegated to members of staff)

MEETING PROCEDURES (A local law governing the conduct of meetings of council and special committees)

Our performance

September 16, 2020, November 26, 2020, March 25, 2021, May 27, 2021 Reports Date reports presented: September 21, 2020, May 17, 2021

Considered at a meeting of council in accordance with section 134 of the Act Date statements presented: October 19, 2020

Reviewed in accordance with section 76C of the Act Date reviewed: February 22, 2021 Reviewed in accordance with section 98(6) of the Act Dates reviewed: August 17, 2020, September 21, 2020, April 19, 2021, June 29, 2021 Meeting procedures local law made in accordance with section 91(1) of the Act Date local law made: May 24, 2019

Wodonga Council Annual Report 2020 - 2021

Our performance

ANNUAL FINANCIAL REPORT 2020-2021

Wodonga Council Annual Financial Report 2020 - 2021

FINANCIAL REPORT CONTENTS

Certification of the financial statements

Comprehensive income statement

Balance sheet

Statement of changes in equity

Statement of cash flows

Statement of capital works

Notes to financial statements Overview

Note 1 - Performance against budget

Note 2 - Analysis of Council results by program

Note 3 - Funding for the delivery of our services

101

Note 4 - The cost of delivering services

104

Note 5 - Our financial position

106

Note 6 - Assets we manage

113

Note 7 - People and relationships

121

Note 8 - Managing uncertainties

123

Note 9 - Other matters

127

Note 10 - Change in accounting policy

132

Our performance

CERTIFICATION OF THE FINANCIAL STATEMENTS

Wodonga Council Annual Financial Report 2020 - 2021

Independent Auditor’s Report To the Councillors of Wodonga City Council Opinion

I have audited the financial report of Wodonga City Council (the council) which comprises the:       

balance sheet as at 30 June 2021 comprehensive income statement for the year then ended statement of changes in equity for the year then ended statement of cash flows for the year then ended statement of capital works for the year then ended notes to the financial statements, including significant accounting policies certification of the financial statements.

In my opinion the financial report presents fairly, in all material respects, the financial position of the council as at 30 June 2021 and their financial performance and cash flows for the year then ended in accordance with the financial reporting requirements of Part 6 of the Local Government Act 1989 and applicable Australian Accounting Standards. Basis for Opinion

I have conducted my audit in accordance with the Audit Act 1994 which incorporates the Australian Auditing Standards. I further describe my responsibilities under that Act and those standards in the Auditor’s Responsibilities for the Audit of the Financial Report section of my report. My independence is established by the Constitution Act 1975. My staff and I are independent of the council in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to my audit of the financial report in Victoria. My staff and I have also fulfilled our other ethical responsibilities in accordance with the Code. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Councillors’ responsibilities for the financial report

The Councillors of the council are responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards and the Local Government Act 1989, and for such internal control as the Councillors determine is necessary to enable the preparation and fair presentation of a financial report that is free from material misstatement, whether due to fraud or error. In preparing the financial report, the Councillors are responsible for assessing the council’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless it is inappropriate to do so.

Our performance

Auditor’s responsibilities for the audit of the financial report

As required by the Audit Act 1994, my responsibility is to express an opinion on the financial report based on the audit. My objectives for the audit are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. As part of an audit in accordance with the Australian Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit. I also: 



 



identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the council’s internal control evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Councillors conclude on the appropriateness of the Councillors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the council’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the council to cease to continue as a going concern. evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

MELBOURNE 24 October 2021

Sanchu Chummar as delegate for the Auditor-General of Victoria

Wodonga Council Annual Financial Report 2020 - 2021

89 2

Wodonga City Council 2020/2021 Financial Report

Comprehensive Income Statement For the Year Ended 30 June 2021 Note

2021 $'000

2020 $'000

Income Rates and charges Statutory fees and fines User fees Grants - operating Grants - capital Contributions - monetary Contributions - non monetary Net profit on disposal of property, infrastructure, plant and equipment Other income Total income

3.1 3.2 3.3 3.4 3.4 3.5 3.5 3.6 3.7

46,722 519 5,920 14,458 10,445 920 7,814 251 415 87,464

46,019 462 5,753 10,528 3,645 1,483 10,918 (1,214) 504 78,098

Expenses Employee costs Materials and services Depreciation Amortisation - right of use assets Bad and doubtful debts Impairment loss on land, buildings and land held for sale Borrowing costs Finance costs - leases Other expenses Total expenses

4.1 4.2 4.3 4.4 4.5 6.1 4.6 4.7 4.8

25,961 20,630 10,716 1,371 6 15,996 1,167 229 838 76,914

24,647 19,100 10,776 1,153 4,346 1,256 216 6,081 67,575

10,550

10,523

69,669 80,219

1,697 12,220

Surplus/(deficit) for the year Other comprehensive income Items that will not be reclassified to surplus or deficit in future periods Net asset revaluation increment/(decrement) Total comprehensive result

6.2

The above comprehensive income statement should be read in conjunction with the accompanying notes. The above comprehensive income statement should be read in conjunction with the accompanying notes.

Our performance

Page 4

Wodonga City Council 2020/2021 Financial Report

Balance Sheet As at 30 June 2021 Note

G 13

G 14

Assets Current assets Cash and cash equivalents Trade and other receivables Other financial assets Inventories Non-current assets classified as held for sale Other assets Total current assets Non-current assets Property, infrastructure, plant and equipment Right-of-use assets Total non-current assets Total assets

G 15

Liabilities Current liabilities Trade and other payables Trust funds and deposits Provisions Interest-bearing liabilities Lease liabilities Total current liabilities Non-current liabilities Provisions Interest-bearing liabilities Lease liabilities Total non-current liabilities Total liabilities

2021 $'000

2020 $'000

5.1 5.1 5.1 5.2 6.1 5.2

18,567 1,437 21,500 62 5,275 647 47,488

20,088 2,887 13,000 40 10,225 680 46,920

6.2 5.8

728,875 6,590 735,465 782,953

650,715 5,877 656,592 703,512

5.3 5.3 5.5 5.4 5.8

4,547 1,039 5,536 2,164 1,118 14,404

3,711 1,393 5,259 2,036 1,999 14,398

5.5 5.4 5.8

2,091 14,509 5,565 22,165 36,569

2,454 16,565 3,930 22,949 37,347

746,384

666,165

449,759 296,625 746,384

439,317 226,848 666,165

Net assets Equity Accumulated surplus Reserves Total Equity

9.1

The above balance sheet should be read in conjunction with the accompanying notes. The above balance sheet should be read in conjunction with the accompanying notes. Page 5

Wodonga Council Annual Financial Report 2020 - 2021

Wodonga City Council 2020/2021 Financial Report

Statement of Changes in Equity For the Year Ended 30 June 2021 G 16

Note

2021 Balance at beginning of the financial year Impact of change in accounting policy -AASB 1059: Service concession arrangements: grantors Adjusted Opening balance Surplus/(deficit) for the year Net asset revaluation increment/(decrement) Transfers to other reserves

10 6.2,9.1 9.1

Balance at end of the financial year

2020 Balance at beginning of the financial year Surplus/(deficit) for the year Net asset revaluation increment/(decrement) Transfers to other reserves Recognition of assets recognised by Council - property Recognition of assets recognised by Council - infrastructure Recognition of assets disposed of by Council - property

6.2 9.1 9.4 9.4 9.4

Balance at end of the financial year

Total $'000

Accumulated Surplus $'000

Revaluation Reserve $'000

Other Reserves $'000

666,165

439,317

226,325

523

666,165 10,550 69,669 746,384 746,384

439,317 10,550 (108) 449,759 449,759

226,325 69,669 295,994 295,994

523 108 631 631

Total $'000

Accumulated Surplus $'000

Revaluation Reserve $'000

Other Reserves $'000

649,399 10,523 1,697 4,452 5,287 (5,193) 666,165 666,165

424,852 10,523 (523) 4,452 5,287 (5,274) 439,317 439,317

224,547 1,697 -

523

81 226,325 226,325

523 523

The above statement of changes in equity should be read in conjunction with the accompanying notes. The above statement of changes in equity should be read in conjunction with the accompanying notes. Page 6

Our performance

Wodonga City Council 2020/2021 Financial Report

Statement of Cash Flows For the Year Ended 30 June 2021

Note

Cash flows from operating activities Rates and charges Statutory fees and fines User fees Grants - operating Grants - capital Contributions - monetary Interest received Trust funds and deposits taken Net GST refund/(payment) Employee costs Materials and services Short-term, low value and variable lease payments Trust funds and deposits repaid Other payments Net cash provided by/(used in) operating activities

9.2

2021 Inflows/ (Outflows) $'000

2020 Inflows/ (Outflows) $'000

47,364 519 6,730 14,470 10,472 920 477 503 367 (26,050) (19,899) (14) (858) (840) 34,162

45,922 462 5,988 10,575 3,650 1,557 554 433 (395) (24,739) (19,087) (163) (425) (6,081) 18,251

(24,110) 1,833 (8,500) (30,777)

(14,965) 180 (14,785)

(1,167) (1,960) (229) (1,549) (4,905) (1,521) 20,088 18,567

(1,256) (1,862) (216) (1,271) (4,605) (1,139) 21,227 20,088

Cash flows from investing activities Payments for property, infrastructure, plant and equipment Proceeds from sale of property, infrastructure, plant and equipment Payments for investments Net cash provided by/(used in) investing activities

6.2

Cash flows from financing activities Finance costs Repayment of borrowings Interest paid - lease liability Repayment of lease liabilities Net cash provided by/(used in) financing activities Net increase (decrease) 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

Financing arrangements Restrictions on cash assets

5.6 5.1

The above statement of cash flows should be read in conjunction with the accompanying notes. The above statement of cash flows should be read in conjunction with the accompanying notes.

WodongaPage Council Annual Financial Report 2020 - 2021 7

Wodonga City Council 2020/2021 Financial Report

Statement of Capital Works For the Year Ended 30 June 2021 Note G 21 G 22

Property Land

2021

2020

$'000

$'000 -

Total land

Buildings

12,760

4,849

Total buildings

12,760

4,849

Total property Plant and equipment Plant, machinery and equipment Computers and telecommunications Library books Total plant and equipment

12,760

4,849

861 504 70 1,435

487 248 51 786

3,336 2,994 128 2,403 179 546 328 9,915

3,288 267 619 28 3,139 1,914 76 9,330

Total capital works expenditure

24,110

14,965

Represented by: New asset expenditure Asset renewal expenditure Asset expansion expenditure Asset upgrade expenditure Total capital works expenditure

3,763 9,570 560 10,217 24,110

4,133 6,498 4,334 14,965

Infrastructure Roads Bridges Footpaths and cycleways Drainage Recreational, leisure and community facilities Parks, open space and streetscapes Off street car parks Other infrastructure Total infrastructure

The above statement of capital works should be read in conjunction with the accompanying notes. Page 8

The above statement of capital works should be read in conjunction with the accompanying notes.

Our performance

Wodonga City Council 2020/2021 Financial Report

Notes to the Financial Report For the Year Ended 30 June 2021

OVERVIEW Introduction The Wodonga City Council was established by an Order of the Governor in Council on December 16, 2003 and is a body corporate. The Council's main office is located at 104 Hovell Street, Wodonga. Statement of compliance These financial statements are a general purpose financial report that consists of a Comprehensive Income Statement, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, Statement of Capital Works and Notes accompanying these financial statements. The general purpose financial report complies with the Australian Accounting Standards (AAS), other authoritative pronouncements of the Australian Accounting Standards Board, the Local Government Act 1989 , and the Local Government (Planning and Reporting) Regulations 2014 . Significant accounting policies (a) Basis of accounting The accrual basis of accounting has been used in the preparation of these financial statements, whereby assets, liabilities, equity, income and expenses are recognised in the reporting period to which they relate, regardless of when cash is received or paid. Judgements, estimates and assumptions are required to be made about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated judgements are based on professional judgement derived from historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. Revisions to accounting estimates are recognised in the period in which the estimate is revised and also in future periods that are affected by the revision. Judgements and assumptions made by management in the application of AAS's that have significant effects on the financial statements and estimates relate to: - the fair value of land, buildings, infrastructure, plant and equipment (refer to Note 6.2) - the determination of depreciation for buildings, infrastructure, plant and equipment (refer to Note 6.2) - the determination of employee provisions (refer to Note 5.5) - the determination of landfill provisions (refer to Note 5.5) - the determination of whether performance obligations are sufficiently specific so as to determine whether an arrangement is within the scope of AASB 15 Revenue from Contracts with Customers or AASB 1058 Income of Not-for-Profit Entities (refer to Note 3) - the determination, in accordance with AASB 16 Leases , of the lease term, the estimation of the discount rate when not implicit in the lease and whether an arrangement is in substance short-term or low value (refer to Note 5.8) - whether or not AASB 1059 Service Concession Arrangements: Grantors is applicable (refer to Note 8.2) - other areas requiring judgements Unless otherwise stated, all accounting policies are consistent with those applied in the prior year. Where appropriate, comparative figures have been amended to accord with current presentation and disclosure has been made of any material changes to comparatives. (b) Impact of Covid-19 On 16 March 2020 a state of emergency was declared in Victoria due to the global pandemic COVID-19 virus, known as coronavirus. A state of disaster was subsequently declared on 2 August 2020. While the impacts of the pandemic have abated somewhat through the 2020-2021 year, Council has noted the following significant impacts on its financial operations: • Council has received income from the Working for Victoria scheme as a result of the COVID-19 pandemic, which has increased revenue. This grant has been used to employ a number of staff for short term contracts. • The leisure centre facilities, WAVES pool, Bonegilla Migrant Experience, library, community centres, and The Cube were closed. These closures resulted in a redeployment of Council staff from closed facilities to other Council roles. User charge based items such as event space hiring fees and parking fines have also reduced due to stay at home measures. Closure of some of Council’s facilities and reduction in user charge based items and fines, has resulted in a decrease in Council’s user fee revenue and also decreased associated expenses. • Council paused some commercial rent agreements, sporting and social club leases for periods throughout the financial year. This resulted in decrease in rent revenue and also associated maintenance and outgoing expenses. • Council’s rate revenue has not been materially impacted by deferrals and interest free periods have been provided to rate payers. • Some capital works projects and budgeted capital expenditure that have been delayed or deferred into 2021-2022 include some of the Library Gallery works, the Hockey Pavilion, and stormwater renewals.

The above impacts on the financial statements for the year ended 30 June 2021, have led to a reduction in income and expenditure in some areas, however overall there has not been a significant impact to Council’s 30 June 2021 financial statements. Given the dynamic and evolving nature of COVID-19, limited recent experience of the economic and financial impacts of such a pandemic on the preparation of these financial statements, changes to the estimates and judgements that have been applied in the measurement of assets and liabilities may arise in the future. Other than adjusting events that provide evidence of conditions that existed at the end of the reporting period, the impact of events that arise after the reporting period will be accounted for in future reporting periods. Page 9

Wodonga Council Annual Financial Report 2020 - 2021

Notes to the Financial Report For the Year Ended 30 June 2021

Wodonga City Council 2020/2021 Financial Report

Note 1 Performance against budget The performance against budget notes compare Council’s financial plan, expressed through its annual budget, with actual performance. The Local Government (Planning and Reporting) Regulations 2014 requires explanation of any material variances. Council has adopted a materiality threshold of the lower of 10 percent or $1 million where further explanation is warranted. Explanations have not been provided for variations below the materiality threshold unless the variance is considered to be material because of its nature. These notes are prepared to meet the requirements of the Local Government Act 1989 and the Local Government (Planning and Reporting) Regulations 2014 . 1.1 Income and expenditure

Income Rates and charges Statutory fees and fines User fees Grants - operating Grants - capital Contributions - monetary Contributions - non monetary

Budget 2021 $'000

Actual 2021 $'000

Variance 2021 $'000

Variance 2021 %

46,934 1,379 4,513 7,351 7,670 293 -

46,722 519 5,920 14,458 10,445 920 7,814

(212) (860) 1,407 7,107 2,775 627 7,814

0% -62% 31% 97% 36% 214% NA

Net gain/(loss) on disposal of property, infrastructure, plant and equipment Other income Total income

(120)

251

371

807 68,827

415 87,464

(392) 18,637

-49% 0

Expenses Employee costs Materials and services Depreciation Amortisation - Right of use assets Bad and doubtful debts Impairment loss on land, buildings and land held for sale Borrowing costs Finance costs - Leases Other expenses Total expenses

27,564 20,578 9,890 1,180 1,116 60,328

25,961 20,630 10,716 1,371 6 15,996 1,167 229 838 76,914

1,603 (52) (826) (1,371) (6) (15,996) 13 (229) 278 (16,586)

6% 0% -8% NA NA NA 1% NA 25% -27%

8,499

10,550

(2,051)

-24%

Surplus/(deficit) for the year

Ref

1 2 3 4 5 6

7 8 9 10

(i) Explanation of material variations Variance Ref

Item

Explanation

Statutory Fees and fines

Statutory fees and user fee budget dissections are different to financial statement dissections, offsets below with user fees $0.5m overall underlying variance to budget.

User fees

As above actual variance to budget is only $0.5m due to higher than budgeted building inspection fees.

Grants - operating

Grants are only included in the adopted budget if they have been confirmed. The increase predominantly relates to new grants announced after the budget was adopted, including $2.5m prepayment of the 2021-2022 Financial Assistance Grant, $0.9m Working for Victoria fund, $0.5m Outdoor eating, $0.1 Early Home Learning grant increase due higher numbers, $0.4m Roads maintenance, $0.1 Emergency Management, $0.1 Strategic Planning and $0.1m Building services. Also included is grant revenue rebudgeted from the 2019-2020 year of $2.1m for Logic Gasgate.

Grants - Capital

Grants are only included in the budget if they have been confirmed. Additional capital grants received and not included in the budget include $2m Library Gallery, $1m NSRF High Street, $0.9m Gateway Island masterplan and building upgrades, $1.5m Hockey pavilion, $0.5m rail trail, partially offset by ($3.0m) grant for Baranduda Fields not received due to delays in commencing the project.

Contributions - monetary

Contributions are only included in the budget if they have been confirmed. Therefore it is common that contributions received after the budget has been adopted will result in actual contributions exceeding budget. Contributions are dependent upon land development projects and are therefore subject to fluctuation.

Page 10

Our performance

Notes to the Financial Report For the Year Ended 30 June 2021

Wodonga City Council 2020/2021 Financial Report

Variance Ref

Item

Explanation

Contributions - non monetary

Developer contributed infrastructure assets have been brought to account. These are not budgeted for as at the time of preparing the budget these items cannot be confirmed.

Employee Costs

Salary, super and employee oncosts have increased due to Working for Victoria funded positions, which are offset by the operating grant received.

Depreciation

Assets capitalised at end of 2020-2021 higher than expected in the budget setting process.

Amortisation - Right of use The 2020-2021 budget process did not consider the change in leasing accounting standards that bring on right of use assets. Offset against reduction in rent and leasing costs in materials and services above. assets

At the time of preparing the budget, fluctuations in land and building values were not anticipated. Following substantial increases in market values over the 2020-2021 year a revaluation of land and buildings was undertaken due to an anticipated material fluctuation in carrying values of these asset categories. A number of land assets were reassessed Impairment loss on buildings and land held for on changes to their zoning and land use restrictions that has resulted in a number of values being reduced. A comprehensive inspection and condition assessment of Park, Open Space and Streetscape assets has also resulted sale in a number of impairments. Other expenses

Predominantly as a result of a reserve transfer of $200k being incorrectly included in other expenses in the budget.

Page 11

Wodonga Council Annual Financial Report 2020 - 2021

Notes to the Financial Report For the Year Ended 30 June 2021

Wodonga City Council 2020/2021 Financial Report

1.2 Capital works

Budget 2021 $'000

Actual 2021 $'000

Variance

$'000

Property Land Total land Buildings Total buildings Total property

6,809 6,809 6,809

12,760 12,760 12,760

5,951 5,951 5,951

0% 0% 87% 87% 87%

Plant and equipment Plant, machinery and equipment Computers and telecommunications Library books Total plant and equipment

520 569 1,089

861 504 70 1,435

341 (65) 70 346

66% -11% 0% 32%

2,915 545 153 10,134 1,321 475 30 15,573

3,336 2,994 128 2,403 179 546 328 9,915

421 2,994 (417) (153) (7,731) (1,142) 71 298 (5,658)

14% 0% -76% -100% -76% -86% 15% 995% -36%

Total capital works expenditure

23,471

24,110

639

Represented by: New asset expenditure Asset renewal expenditure Asset expansion expenditure Asset upgrade expenditure Total capital works expenditure

9,562 6,636 7,273 23,471

3,763 9,570 560 10,217 24,110

(5,799) 2,934 560 2,944 639

-61% 44% NA 40% 3%

Ref

2 3 4 5 6 7

(i) Explanation of material variations Variance Ref

Item

Explanation

Buildings

Building variations are predominantly from rebudgeted projects from the 20192020 year, including $4 million for the library gallery and $0.8 million for the WSLC Mechanical Services.

Bridges

Footpaths

This is for the Lawrence Street bridge, which was rebudgeted from the 2019-2020 year. This project was completed in July 2021.

Drainage

Recreational, leisure and community facilities

The footpath renewal program was delayed due to COVID restrictions and will be carried over into the 2021-2022 year for completion. Stormwater drainage renewal program was delayed due to COVID restrictions and will be carried over into the 2021-2022 year for completion. $7 million for Baranduda Fields stage 1A was delayed due to the location of the endangered Sloanes Froglet, which resulted in an amendment to the Baranduda Fields Masterplan to accommodate the preservation of the froglet habitat. This project will be carried over into the 2021-2022 year for completion.

Parks, open space and streetscapes

Delays to commencement of projects have resulted in works to carry over into the 2021-2022 year for completion. Projects delayed include Belvoir Park playground $0.8 million and Kelly Park LED Lighting upgrade $0.1 million.

Other infrastructure

Projects rebudgeted from the 2019-2020 year were not included in the 2020-2021 budget. These included $0.2 million for Gateway Village Masterplan actions and $0.1 million for The Cube energy efficiency projects.

Page 12

Our performance

Wodonga City Council 2020/2021 Financial Report G 30

Notes to the Financial Report For the Year Ended 30 June 2021

Note 2 Analysis of Council results by program Council delivers its functions and activities through the following programs. 2 (a) Community Development Community Development works collectively and collaboratively across the organisation and out into the community to provide opportunities that are premised on the principles of equity, access and social justice that are responsive to community need and aspirations that provides optimal quality of life outcomes for all. Finance & Systems Finance & Systems seeks to provide quality financial and general management leadership to Council and the community and to help people in our organisation achieve their goals, to be digitally enabled to support an economically vibrant, sustainable, healthy and safe organisation and community. Planning and Infrastructure Planning and infrastructure provides timely statutory and strategic responses to city planning, planning and implementing infrastructure and public amenity projects and maintaining the city’s built and natural assets in association with other units within the organisation for the benefit of the community. City Growth, Engagement & People City Growth, Engagement and People's directorate's purpose is to engage in collaborative endeavours and innovative practises to facilitate transformational change, contributing positively to the future growth and sustainability of the city and the quality of life experienced in the community.

Page 13

Wodonga Council Annual Financial Report 2020 - 2021

Wodonga City Council 2020/2021 Financial Report

Notes to the Financial Report For the Year Ended 30 June 2021

2 (b) Summary of revenues, expenses, assets and capital expenses by program

Income 2021 Community Development Finance and Systems Planning and Infrastructure City Growth, Engagement and People

$'000 16,824 54,834 13,878 1,677 87,213

Income 2020 Community Development Finance and Systems Planning and Infrastructure City Growth, Engagement and People

$'000 7,004 57,310 14,166 832 79,312

Grants Expenses Surplus/( included Deficit) in income $'000 10,887 40,167 19,569 6,040 76,663

$'000 5,937 14,666 (5,691) (4,363) 10,550

$'000 15,706 4,805 3,342 1,049 24,903

Grants Expenses Surplus/( included Deficit) in income $'000 16,128 27,875 20,292 4,494 68,789

$'000 (9,124) 29,435 (6,126) (3,662) 10,523

$'000 5,013 4,969 4,020 171 14,173

Page 14

100

Our performance

Total assets $'000 77,133 107,497 589,165 9,159 782,954

Total assets $'000 34,595 94,664 564,510 5,197 698,966

Wodonga City Council 2020/2021 Financial Report

Notes to the Financial Report For the Year Ended 30 June 2021

Note 3 Funding for the delivery of our services 3.1 Rates and charges

2021 $'000

2020 $'000

Council uses Capital Improved Value as the basis of valuation of all properties within the municipal district. The Capital Improved Value of a property is the value of land and all improvements. The valuation base used to calculate general rates for 2020-2021 was $7,205 million (2019-2020 $6,802 million). General rates Waste management charge Service rates and charges Supplementary rates and rate adjustments Interest on rates and charges Total rates and charges

40,150 6,018 39 515 46,722

39,360 5,988 38 587 46 46,019

The date of the latest general revaluation of land for rating purposes within the municipal district was 1 January 2020, and the valuation will be first applied in the rating year commencing 1 July 2020. Annual rates and charges are recognised as revenues when Council issues annual rates notices. Supplementary rates are recognised when a valuation and reassessment is completed and a supplementary rates notice issued. 3.2 Statutory fees and fines Infringements and costs Court recoveries Town planning fees Land information certificates Permits Total statutory fees and fines

93 9 68 48 301 519

121 33 9 37 262 462

Statutory fees and fines (including parking fees and fines) are recognised as revenue when the service has been provided, the payment is received, or when the penalty has been applied, whichever first occurs. 3.3 User fees Infrastructure fees Child care/children's programs The Cube Building Maintenance Tourism, culture and events Community centres Contract works Waste fees Transfer station Health Property Management Recreation Civic service fees Gateway village fees Building and town planning service fees Library Rates cost recoveries Other fees and charges Total user fees

261 1,043 37 191 108 19 161 17 728 408 519 149 556 59 1,529 10 100 25 5,920

238 1,202 298 153 106 72 95 22 557 451 496 153 514 86 1,195 16 80 19 5,753

User fees by timing of revenue recognition User fees recognised at a point in time Total user fees

5,920 5,920

5,753 5,753

User fees are recognised as revenue at a point in time, or over time, when (or as) the performance obligation is satisfied. Recognition is based on the underlying contractual terms.

Page 15

Wodonga Council Annual Financial Report 2020 - 2021

101

Wodonga City Council 2020/2021 Financial Report

Notes to the Financial Report For the Year Ended 30 June 2021

3.4 Funding from other levels of government Grants were received in respect of the following : Summary of grants Commonwealth funded grants State funded grants Total grants received

2020 $'000 6,659 7,514 14,173

(a) Operating Grants Recurrent - Commonwealth Government Financial Assistance Grants Victoria Grants Commission - local roads funding Senior Citizens Centre Recurrent - State Government Regional Partnerships - The Cube Libraries School Crossing Supervisors Emergency Management Environmental Health Maternal and Child Health Children's Services Youth Services Community Centres Healthy Communities Environmental Lands Projects and Design Business Innovation Strategic Planning Parks and Gardens Inclusive and Safer Communities Sustainability Events Program Total recurrent operating grants

4,724 814 9

4,547 783 9

80 318 135 158 62 444 3,630 47 174 3 25 75 88 18 10,803

105 313 85 71 345 3,139 61 166 117 19 48 180 145 2 25 4 5 10,169

Non-recurrent - State Government Economic Development Arts Development Strategic Planning Natural Disasters Operating Projects Waste Management Total non-recurrent operating grants Total operating grants

3,476 50 45 74 10 3,655 14,458

5 30 15 242 67 359 10,528

Page 16

102

2021 $'000 7,074 17,829 24,903

Our performance

Notes to the Financial Report For the Year Ended 30 June 2021

Wodonga City Council 2020/2021 Financial Report (b) Capital Grants Recurrent - Commonwealth Government Roads to recovery Total recurrent capital grants Non-recurrent - Commonwealth Government Pedestrian Cyclepath Linkage to CBD Bonegilla Development National Stonger Regions Fund CBD Total non-recurrent - Commonwealth Government Non-recurrent - State Government Buildings Recreational, leisure and community Sustainability Parks, open spaces and streetscapes Roads Other small capital projects Total non-recurrent - State Government Total non-recurrent capital grants Total capital grants

2021 $'000 541 541

2020 $'000 541 541

985 985

458 321 779

4,604 3,812 140 362 8,919 9,904 10,445

200 276 54 1,500 295 2,325 3,104 3,645

(c) Unspent grants received on condition that they be spent in a specific manner Operating Balance at start of year Received during the financial year and remained unspent at balance date Received in prior years and spent during the financial year Balance at year end Capital Balance at start of year Received during the financial year and remained unspent at balance date Received in prior years and spent during the financial year Balance at year end

905 841 (728) 1,018

1,775 905 (1,775) 905

62 (62) -

62 62

Grant income is recognised at the point in time when the council satisfies its performance obligations as specified in the underlying agreement.

3.5 Contributions Monetary Non-monetary Total contributions Contributions of non monetary assets were received in relation to the following asset classes. Land Other infrastructure Total non-monetary contributions

2021 $'000

2020 $'000

920 7,814 8,734

1,483 10,918 12,401

1,560 6,254 7,814

2,181 8,737 10,918

Monetary and non monetary contributions are recognised as revenue when Council obtains control over the contributed asset.

Page 17

Wodonga Council Annual Financial Report 2020 - 2021

103

Wodonga City Council 2020/2021 Financial Report

Notes to the Financial Report For the Year Ended 30 June 2021

3.6 Net profit on disposal of property, infrastructure, plant and equipment Proceeds of sale Written down value of assets disposed from Property, Infrastructure, Plant and Equipment (Note 6.2) Written down value of assets disposed from Land held for resale and cost of sale (Note 6.1) Written down value of assets disposed from completed leases Total net profit on disposal of property, infrastructure, plant and equipment

2021 $'000

2020 $'000

1,833 (24) (1,557) (1) 251

180 (1,394) (1,214)

2021 $'000 415 415

2020 $'000 504 504

The profit or loss on sale of an asset is determined when control of the asset has passed to the buyer. 3.7 Other income Interest Other Total other income

Interest is recognised as it is earned. Other income is measured at the fair value of the consideration received or receivable and is recognised when Council gains control over the right to receive the income. Note 4 The cost of delivering services 4.1 (a) Employee costs Wages and salaries WorkCover Casual Staff Superannuation Fringe benefits tax Redundancy Other Total employee costs (b) Superannuation Council made contributions to the following funds: Defined benefit fund Employer contributions to Local Authorities Superannuation Fund (Vision Super) Employer contributions payable at reporting date. Accumulation funds Employer contributions to Local Authorities Superannuation Fund (Vision Super) Employer contributions - other funds Employer contributions payable at reporting date. Refer to note 9.3 for further information relating to Council's superannuation obligations.

Page 18

104

Our performance

2021 $'000

2020 $'000

21,517 804 868 2,071 133 31 537 25,961

20,309 619 1,031 2,027 114 144 403 24,647

2021 $'000

2020 $'000

72 72 -

76 76 -

925 1,066 1,991 98

955 992 1,947 84

Notes to the Financial Report For the Year Ended 30 June 2021

Wodonga City Council 2020/2021 Financial Report 4.2 Materials and services Contract payments - waste management Contract payments - sustainability Contract payments - information management Contract payments - recreation Contract payments - civic services Contract payments - finance Contract payments - building and property Contract payments - other Building maintenance General maintenance Utilities Office administration Information technology Insurance Consultants Lease Payments Other Total materials and services

2021 $'000 4,893 34 1,044 1,018 111 1,141 678 646 4,610 1,100 1,459 983 256 595 1,439 14 609

2020 $'000 4,550 133 879 1,064 89 54 428 546 5,284 914 1,717 797 267 508 1,188 163 519

20,630

19,100

1,845 1,067 7,804 10,716

1,754 1,061 7,961 10,776

351 746 274 1,371

280 663 210 1,153

2021 $'000 6 6

2020 $'000 -

9 6 (9) 6

9 9

4.3 Depreciation Property Plant and equipment Infrastructure Total depreciation Refer to note 5.2( c ), 5.8 and 6.2 for a more detailed breakdown of depreciation and amortisation charges and accounting policy. 4.4 Amortisation - Right of use assets Property Vehicles IT Total Amortisation - Right of use assets

4.5 Bad and doubtful debts Other debtors Total bad and doubtful debts Movement in provisions for doubtful debts Balance at the beginning of the year New provisions recognised during the year Amounts already provided for and written off as uncollectible Balance at end of year

Provision for doubtful debt is recognised based on an expected credit loss model. This model considers both historic and forward looking information in determining the level of impairment.

Page 19

Wodonga Council Annual Financial Report 2020 - 2021

105

Wodonga City Council 2020/2021 Financial Report

Notes to the Financial Report For the Year Ended 30 June 2021

4.6 Borrowing costs

2021 $'000 1,167 1,167

Interest - Borrowings Less capitalised borrowing costs on qualifying assets Total borrowing costs

2020 $'000 1,256 1,256

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. 4.7 Finance Costs - Leases Interest - Lease Liabilities Total finance costs

229 229

216 216

62 77 243 80 42 195 139 838

66 40 261 80 5,262 41 209 122 6,081

4.8 Other expenses Auditors' remuneration - VAGO - audit of the financial statements, performance statement and grant acquittals Auditors' remuneration - Internal Councillors' allowances Economic development contributions LOGIC GasGate contribution Enviromental contributions Community contributions Memberships Total other expenses

LOGIC GasGate contribution $5,262 million is to provide a mains gas connection to LOGIC industrial estate. A funding agreement for a grant from the Victorian state government of $2.6 milliion was signed in 2019-2020, reducing the overall net cost to Council to $2.662 million. Funds of $2.1 million in 2020-2021 have been received and $0.5 million in 2021-2022 will be received, as disclosed in note 8.1 (a).

Note 5 Our financial position 5.1 Financial assets (a) Cash and cash equivalents Cash on hand Cash at bank At call funds Term deposits Total cash and cash equivalents (b) Other financial assets Term deposits - current Total other financial assets Total financial assets

2021 $'000

2020 $'000

4 1,043 8,920 8,600 18,567

3 1,581 5,004 13,500 20,088

21,500 21,500 40,067

13,000 13,000 33,088

Councils cash and cash equivalents are subject to external restrictions that limit amounts available for discretionary use. These include: - Wodonga Retained Environmental Network (WREN) (Note 5.5) - Trust funds and deposits (Note 5.3) Total restricted funds Total unrestricted cash and cash equivalents

333 1,039 1,372 17,195

1,415 1,393 2,808 17,280

Intended allocations Although not externally restricted the following amounts have been allocated for specific future purposes by Council: - Unexpended grant funds for specific future purposes (Note 3.4(c)) - Cash held to fund carried forward capital works 1 - Provision for defined benefits superannuation fund shortfall / call 1 Total funds subject to intended allocations

1,018 13,969 2,000 16,987

967 10,122 1,900 12,989

Funds set aside for Intended allocations are held in both cash and other financial assets

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. Other financial assets are valued at fair value, at balance date. Term deposits are measured at original cost . Any unrealised gains and losses on holdings at balance date are recognised as either a revenue or expense.

Page 20

106

Our performance

Wodonga City Council 2020/2021 Financial Report

Notes to the Financial Report For the Year Ended 30 June 2021

5.1 Financial assets (c) Trade and other receivables Current Statutory receivables Rates debtors Non statutory receivables Other debtors Provision for doubtful debts - other debtors Net GST receivable Total current trade and other receivables

2021 $'000

2020 $'000

403

1,045

408 (6) 632 1,437

852 (9) 999 2,887

Short term receivables are carried at invoice amount. A provision for doubtful debts is recognised when there is objective evidence that an impairment has occurred. Long term receivables are carried at amortised cost using the effective interest rate method. (d) Ageing of Receivables The ageing of the Council's trade and other receivables (excluding statutory receivables) that are not impaired was: Current (not yet due) Past due by up to 30 days Past due between 31 and 180 days Past due between 181 and 365 days Past due by more than 1 year Total trade and other receivables

347 41 20 408

Wodonga Council Annual Financial Report 2020 - 2021 Page 21

518 191 143 852

107

Wodonga City Council 2020/2021 Financial Report

Notes to the Financial Report For the Year Ended 30 June 2021

5.2 Non-financial assets (a) Inventories Inventories held for distribution Total inventories

2021 $'000

2020 $'000

62 62

40 40

Inventories held for distribution are measured at cost, adjusted when applicable for any loss of service potential. All other inventories, including land held for sale, are measured at the lower of cost and net realisable value. Where inventories are acquired for no cost or nominal consideration, they are measured at current replacement cost at the date of acquisition. (b) Other assets Prepayments Accrued income Total other assets

579 68 647

549 131 680

2,884

2,576

231

191

246

172

104

63 1,019 4,547

63 611 3,711

Refundable deposits Fire services levy Retention amounts Other refundable deposits Total trust funds and deposits

1,003 36 1,039

1,372 21 1,393

(c) Unearned income Grants received in advance - operating Grants received in advance - capital Other Total unearned income

1,019 1,019

611 611

5.3 Payables (a) Trade and other payables Trade payables Accrued expenses Employee Costs Income received in advance Accrued interest Grants in advance (5.3(c)) Total trade and other payables (b) Trust funds and deposits

Amounts received as deposits and retention amounts controlled by Council are recognised as trust funds until they are returned, transferred in accordance with the purpose of the receipt, or forfeited. Trust funds that are forfeited, resulting in council gaining control of the funds, are to be recognised as revenue at the time of forfeit. Purpose and nature of items Refundable deposits - Deposits are taken by Council as a form of surety in a number of circumstances, including in relation to building works, tender deposits, contract deposits and the use of civic facilities. Fire Service Levy - Council is the collection agent for fire services levy on behalf of the State Government. Council remits amounts received on a quarterly basis. Amounts disclosed here will be remitted to the state government in line with that process. Retention Amounts - Council has a contractual right to retain certain amounts until a contractor has met certain requirements or a related warrant or defect period has elapsed. Subject to the satisfactory completion of the contractual obligations, or the elapsing of time, these amounts will be paid to the relevant contractor in line with Council's contractual obligations.

108

Our performance Page 22

Notes to the Financial Report For the Year Ended 30 June 2021

Wodonga City Council 2020/2021 Financial Report

5.4 Interest-bearing liabilities Current Borrowings - secured Credit card facility - unsecured Non-current Borrowings - secured Total

2021 $'000

2020 $'000

2,055 109 2,164

1,951 85 2,036

14,509 14,509 16,673

16,565 16,565 18,601

2,165 6,136 8,372 16,673

2,036 6,796 9,769 18,601

Borrowings are secured by a general charge (a) The maturity profile for Council's borrowings is: Not later than one year Later than one year and not later than five years Later than five years

Borrowings are initially measured at fair value, being the cost of the interest bearing liabilities, net of transaction costs. The measurement basis subsequent to initial recognition depends on whether the Council has categorised its interest-bearing liabilities as either financial liabilities designated at fair value through the profit and loss, or financial liabilities at amortised cost. Any difference between the initial recognised amount and the redemption value is recognised in net result over the period of the borrowing using the effective interest method. The classification depends on the nature and purpose of the interest bearing liabilities. The Council determines the classification of its interest bearing liabilities at initial recognition.

5.5 Provisions

Employee

2021 Balance at beginning of the financial year Additional provisions Amounts used Change in the discounted amount arising because of time and the effect of any change in the discount rate

$ '000

Landfill restoration $ '000

$ '000

5,610 1,912 (1,740)

1,129 (100)

974 (208)

7,713 1,912 (2,048)

Other

Total

Balance at the end of the financial year

5,782

1,079

766

7,627

2020 Balance at beginning of the financial year Additional provisions Amounts used Change in the discounted amount arising because of time and the effect of any change in the discount rate

5,310 1,906 (1,606)

1,261 (100)

1,244 (270)

7,815 1,906 (1,976)

Balance at the end of the financial year

5,610

(32) 1,129

974

(32) 7,713

Wodonga Council Annual Financial Report 2020 - 2021 Page 23

109

Wodonga City Council 2020/2021 Financial Report

Notes to the Financial Report For the Year Ended 30 June 2021

(a) Employee provisions Current provisions expected to be wholly settled within 12 months Time in Lieu Annual leave Long service leave Current provisions expected to be wholly settled after 12 months Annual leave Long service leave Total current employee provisions Non-current Long service leave Total non-current employee provisions Aggregate carrying amount of employee provisions: Current Non-current Total aggregate carrying amount of employee provisions

2021 $'000

2020 $'000

86 1,488 566 2,140

78 1,369 549 1,996

238 2,766 3,004 5,144

192 2,681 2,873 4,869

638 638

741 741

5,144 638 5,782

4,869 741 5,610

The calculation of employee costs and benefits includes all relevant on-costs and are calculated as follows at reporting date. Wages and salaries and annual leave Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulated sick leave expected to be wholly settled within 12 months of the reporting date are recognised in the provision for employee benefits in respect of employee services up to the reporting date, classified as current liabilities and measured at their nominal values. Liabilities that are not expected to be wholly settled within 12 months of the reporting date are recognised in the provision for employee benefits as current liabilities, measured at the present value of the amounts expected to be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement.

Long service leave Liability for long service leave (LSL) is recognised in the provision for employee benefits. LSL is measured at present value. Unconditional LSL is disclosed as a current liability. Conditional LSL that has been accrued, where an employee is yet to reach a qualifying term of employment, is disclosed as a non - current liability.

Key assumptions: - inflation rate - discount rate (b) Landfill restoration Current Non-current

2.95% 1.49%

4.25% 0.09%

2021 $'000 100 979 1,079

2020 $'000 100 1,029 1,129

Council is obligated to restore the closed Beechworth Road and Sheathers Road landfill sites to a particular standard. The provision for landfill restoration has been calculated based on the present value of the expected cost of works to be undertaken. The expected cost of works has been estimated based on current understanding of work required to reinstate the site to a suitable standard. Accordingly, the estimation of the provision required is dependent on the accuracy of the forecast timing of the work, work required and related costs. Key assumptions: - discount rate - index rate (c) Wodonga Retained Environmental Network (WREN) Current Non-current

6.23% 1.00%

6.20% 1.00%

2021 $'000 292 474 766

2020 $'000 290 684 974

Under agreement, the Council is obliged to protect and enhance in perpetuity the biological values of the Wodonga retained environmental network area, including the protection and enhancement of native plants and animals with particular emphasis on threatened species and their habitats. This provision is not discounted as it relates to a set amount of funding available for this purpose at Council's discretion. Refer Note 5.1(b) for funds set aside for WREN of $0.333 million (2020 $1.415 million).

Total provisions Current Non-current

110

5,536 2,091 7,627

Our performance Page 24

5,259 2,454 7,713

Wodonga City Council 2020/2021 Financial Report

Notes to the Financial Report For the Year Ended 30 June 2021

5.6 Financing arrangements

Bank overdraft Credit card facilities Other facilities Total facilities

2021 $'000 200 390 16,565 17,155

2020 $'000 200 364 18,516 19,080

Used facilities Unused facilities

16,674 481

18,601 479

The Council has the following funding arrangements in place as at 30 June.

5.7 Commitments The Council has entered into the following commitments. Commitments are not recognised in the Balance Sheet. Commitments are disclosed at their nominal value and presented inclusive of the GST payable.

2021 Operating Recycling/Garbage Collection Open space management Leasing Other contracted amounts Cleaning contracts for council buildings Total

Not later than 1 year $'000

Capital Buildings Roads Open Space Plant Total

2020 Operating Recycling/Garbage Collection Open space management Energy Procurement Leasing Other contracted amounts Cleaning contracts for council buildings Total

Later than 2 years and not later than 5 years $'000

Later than 5 years $'000

2,652 2,203 943 4,473 670 10,941

2,601 1,260 326 1,151 57 5,395

4,850 10 740 726 6,326

650 177 334 610 1,771

Not later than 1 year $'000

Capital Buildings Open Spaces Roads Other Total

Later than 1 year and not later than 2 years $'000

Later than 2 years and not later than 5 years $'000

77 77

Later than 5 years $'000

10,103 3,473 2,009 6,427 727 22,739 650 177 334 610 1,771

Total $'000

2,512 2,706 3,405 1,111 4,004 619 14,357

2,490 1,371 857 1,363 670 6,751

7,326 1,103 630 986 1,365 11,410

1 72 73

12,328 5,180 3,405 2,599 6,425 2,654 32,591

5,493 631 3,914 3 10,041

Wodonga Council Annual Financial Report 2020 - 2021 Page 25

Total $'000

111

Wodonga City Council 2020/2021 Financial Report

Notes to the Financial Report For the Year Ended 30 June 2021

5.8 Leases At inception of a contract, all entities would assess whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To identify whether a contract conveys the right to control the use of an identified asset, it is necessary to assess whether: - The contract involves the use of an identified asset; - The customer has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use; and - The customer has the right to direct the use of the asset. This policy is applied to contracts entered into, or changed, on or after 1 July 2019.

As a lessee, Council recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost which comprises the initial amount of the lease liability adjusted for: · any lease payments made at or before the commencement date less any lease incentives received; plus · any initial direct costs incurred; and · an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of property, plant and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain measurements of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, an appropriate incremental borrowing rate. Generally, Council uses an appropriate incremental borrowing rate as the discount rate. Lease payments included in the measurement of the lease liability comprise the following: · Fixed payments · Variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date; · Amounts expected to be payable under a residual value guarantee; and · The exercise price under a purchase option that Council is reasonably certain to exercise, lease payments in an optional renewal period if Council is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless Council is reasonably certain not to terminate early. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. Council has elected to apply the temporary option available under AASB 16 Leases which allows not-for-profit entities to not measure right-of-use assets at initial recognition at fair value in respect of leases that have significantly below-market terms. Council currently has peppercorn leases in relation to parcels of land in which Council has utilised as part of the Junction Square precinct upgrade. Council has been given the right to use these assets by Development Victoria and Central Place Pty Ltd for the betterment of the central business area. As at 30 June 2021 Council was not required to value these right-to-use assets at fair value.

Balance at 1 July 2019 Adjustments Additions Amortisation charge Balance at 30 June 2020

Property $'000 3,681 (280) 3,401

Vehicles $'000 1,831 816 (663) 1,984

Other $'000 494 208 (210) 492

Total $'000 6,006 1,024 (1,153) 5,877

Balance at 1 July 2020 Adjustments Additions Amortisation charge Balance at 30 June 2021

3,401 1,044 15 (351) 4,109

1,984 67 840 (746) 2,145

492 37 81 (274) 336

5,877 1,148 936 (1,371) 6,590

Lease Liabilities Maturity analysis - contractual undiscounted cash flows Less than one year One to five years More than five years Total undiscounted lease liabilities as at 30 June:

2021 $'000 1,326 3,221 3,720 8,267

2020 $'000 1,397 3,069 1,451 5,917

Lease liabilities included in the Balance Sheet at 30 June: Current Non-current Total lease liabilities

1,118 5,565 6,683

1,999 3,930 5,929

Right-of-Use Assets

Short-term and low value leases Council has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less and leases of low-value assets (individual assets worth less than exisiting capitalisation thresholds for a like asset up to a maximum of AUD$10,000), including IT equipment. Council recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term. 2021 $'000 14 14 -

Expenses relating to: Short-term leases Leases of low value assets Total Variable lease payments (not included in measurement of lease liabilities)

2020 $'000 160 160 3

Non-cancellable lease commitments - Short-term and low-value leases Commitments for minimum lease payments for short-term and low-value leases are payable as follows: Payable: Within one year Later than one year but not later than five years Total lease commitments Page 26

112

Our performance

Notes to the Financial Report For the Year Ended 30 June 2021

Wodonga City Council 2020/2021 Financial Report Note 6 Assets we manage 6.1 Non current assets classified as held for sale Sites Former Wodonga Saleyards Site Lot 1 CBD West - Elgin Bvd and Stanley St Logic Bvd Lot 5 and 6 Logic - Tom Tanners Rd Kiewa Valley Highway / McGeochs Rd Bandiana Total non current assets classified as held for sale

2021 $'000

2020 $'000

3,550 1,725 5,275

1,500 3,400 100 3,500 1,725 10,225

Status at 30 June 2021 Settlement occured in 2020/2021 Settlement highly probable in 2021/2022 Settlement on Lot 6 occured in 2020/2021, Lot 5 discontinued Discontinued sale Settlement highly probable in 2021/2022

Non-current assets classified as held for sale (including disposal groups) are measured at the lower of its carrying amount and fair value less costs of disposal, and are not subject to depreciation. Non-current assets, disposal groups and related liabilities and assets are treated as current and classified as held for sale if their carrying amount will be recovered through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset's sale (or disposal group sale) is expected to be completed within 12 months from the date of classification. Where assets classified as held for resale no longer meet the criteria for classification as being held for sale, the asset shall cease to be classified as held for sale and will be reclassified at the lower of its carrying amount before the asset was classiedied as held for sale or its recoverable amount at the date of hte subsequent decision not to sell. Reconciliation of Land Held for Sale Cost

Impairment

Revaluation

Value at 30 June 2021

$'000

Land Held for Sale at 30 June 2020

10,225

Land reclassified/revalued to land held for sale during the year revaluation increment - CBD West land Land reclassified/revalued to land held for sale during the year

452 452

602 602

10,225

150 150

Land removed from land held for sale during the year Logic - Tom Tanners Rd Logic Boulevard - Lot 5 Land removed from land held for sale during the year

(3,500) (50) (3,550)

Land sold / disposed of during the year Former Wodonga Saleyards Site Lot 1 Logic Boulevard - Lot 6 Land sold / disposed of during the year

(1,500) (50) (1,550)

Total non current assets classified as held for sale

5,125

452

602

5,275

2021 $'000

Reconciliation of Impairment to Income Statement Impairment above Additional impairment on other category of land as per Note 6.2 Impairment disclosed in Income Statement

452 15,544 15,996

Reconciliation of Written Down Value of Land held for Sale to Note 3.6 Cost of land sold/disposed above Selling costs Written Down Value of Land held for Sale in Note 3.6

(1,550) (7) (1,557)

Wodonga Council Annual Financial Report 2020 - 2021

Page 27

113

Wodonga City Council

Our performance

Restatement of opening balance, refer note 9.4

Additions $'000 11,338 398 5,356 17,092

3,629 183 1,116 4,928

1,422 1,037 4,559 17,092 24,110

Opening WIP $'000

295,055 3,913 346,722 4,928 650,618

Additions $'000

(17) (17)

Write-off $'000

1,560 6,254 7,814

Contributions $'000

Page 28

69,067 602 69,669

$'000

(125) (735) (860)

Transfers $'000

59,891 9,176 69,067

Revaluation $'000

Notes to the Financial Report For the Year Ended 30 June 2021

Reconciliation of Revaluation transfer to Revaluation Reserve Revaluation of Property, infrastructure, plant and equipment Revaluation of Land held for resale (Note 6.1) Total revaluation transferred to Revaluation Reserve (Statement of Changes in Equity)

Property Plant and equipment1 Infrastructure Total

Summary of Work in Progress

Property1 Plant and equipment Infrastructure1 Work in progress1

At Fair Value 30 June 2020 $'000

Summary of property, infrastructure, plant and equipment

6.2 Property, infrastructure, plant and equipment

2020/2021 Financial Report

114 14,967 439 5,737 21,143

Closing WIP $'000

(1,845) (1,067) (7,804) (10,716)

Depreciation $'000

(7)

(17) (24)

Disposal $'000 (9,836) (5,708) (15,544)

Impairment $'000 3,550 3,550

Transfers to Held for Sale $'000 125 735 (860) -

Transfers $'000

349,797 4,001 353,934 21,143 728,875

At Fair Value 30 June 2021 $'000

Restatement of opening balance, refer note 9.4

At fair value 30 June 2021 Accumulated depreciation at 30 June 2021

Movements in accumulated depreciation Depreciation and amortisation Accumulated depreciation of disposals Revaluation Impairment losses recognised in operating result Transfers

Movements in fair value Additions Contributions Revaluation Disposal Write-off Transfers Transfers to Land Held for Sale Impairment losses recognised in operating result

At fair value 1 July 2020 Accumulated depreciation at 1 July 2020

(a) Property

2020/2021 Financial Report

Wodonga City Council

Wodonga Council Annual Financial Report 2020 - 2021

115

47,002 47,002

8,255 3,550 11,805

1,560 33,468 (9,533) 25,495

230,383 230,383

$'000 35,197 35,197

$'000 -

Land - non Land specialised improvements

$'000 204,888 204,888

Land specialised1

1,422 25,204 (30) (303) 26,293 (1,845) (7,036) 1 (8,880) 115,974 (43,591) 72,383

1,560 41,723 3,550 (9,533) 37,300 277,385 277,385

Page 29

$'000 89,681 (34,711) 54,970

Buildings specialised1

Total Land & Land Improvements $'000 240,085 240,085

Notes to the Financial Report For the Year Ended 30 June 2021

(1) (1) 30 (1) 29

30 30

$'000 -

116,004 (43,592) 72,412

(1,845) (7,036) (8,881)

1,422 25,204 (303) 26,323

$'000 89,681 (34,711) 54,970

Leasehold Total Buildings improvements

14,967 14,967

11,338 11,338

$'000 3,629 3,629

408,356 (43,592) 364,764

(1,845) (7,036) (8,881)

12,760 1,560 66,927 3,550 (9,836) 74,961

$'000 333,395 (34,711) 298,684

Work In Total Property Progress

116

Our performance

At fair value 30 June 2021 Accumulated depreciation at 30 June 2021

Movements in accumulated depreciation Depreciation and amortisation Accumulated depreciation of disposals Impairment losses recognised in operating result Transfers

Movements in fair value Additions Contributions Revaluation Disposal Write-off Transfers Impairment losses recognised in operating result

At fair value 1 July 2020 Accumulated depreciation at 1 July 2020

(b) Plant and Equipment

2020/2021 Financial Report

Wodonga City Council

5,075 (2,438) 2,636

956 (434) 522

(68) 19 (49)

197 78 275

525 (83) 47 489

(495) 83 (411)

$'000 681 (385) 296

$'000 4,586 (2,027) 2,559

2,862 (2,248) 614

(414) (19) (433)

245 245

$'000 2,617 (1,815) 802

Page 30

559 (330) 229

(90) 131 41

70 (63) (75) (68)

$'000 627 (371) 256

Plant Fixtures fittings Computers and machinery and Library books and furniture telecomms equipment

Notes to the Financial Report For the Year Ended 30 June 2021

9,452 (5,450) 4,001

439 439

398 (17) (125) 256

1,037 (146) (75) 125 941

(1,067) 214 (852)

$'000 183 183

Work in Progress

$'000 8,511 (4,598) 3,913

Total plant and equipment

9,891 (5,450) 4,440

(1,067) 214 (852)

1,435 (146) (92) 1,197

$'000 8,694 (4,598) 4,096

Total plant and equipment (WIP included)

Wodonga Council Annual Financial Report 2020 - 2021

117

Restatement of opening balance, refer note 9.4

At fair value 30 June 2021 Accumulated depreciation at 30 June 2021

Movements in accumulated depreciation Depreciation and amortisation Accumulated depreciation of disposals Revaluation Impairment losses recognised in operating result Transfers

Movements in fair value Additions Contributions Revaluation Disposal Write-off Transfers Impairment losses recognised in operating result

At fair value 1 July 2020 Accumulated depreciation at 1 July 2020

2020/2021 Financial Report

Wodonga City Council

(1,872) (1,872) (189) 1,000 811

3,974 3,592 329 7,895 (4,586) (4,586) 19,459 (8,328) 11,131

$'000 21,331 (9,139) 12,192

$'000 282,643 (76,912) 205,731

290,538 (81,498) 209,040

Bridges

Roads

52,758 (22,122) 30,636

(78) 32 (46)

324.00 734 35 (64) 1,029

$'000 51,729 (22,076) 29,653

Footpaths and cycleways

Page 31

124,556 (37,080) 87,476

(1,226) 28 (1,198)

1,928 (54) 1,874

23,641 (7,990) 15,651

(1,725) (394) 1,491 (628)

261 9,570 371 (6,269) 3,933

Parks open spaces and streetscapes1 $'000 $'000 122,682 19,708 (35,882) (7,362) 86,800 12,346

Drainage

Notes to the Financial Report For the Year Ended 30 June 2021

5,737 5,737

5,356 (735) 4,621

$'000 1,116 1,116

Work In Progress

516,689 (157,018) 359,671

(7,804) (394) 2,551 (5,647)

9,915 6,254 9,570 (8,259) 17,480

$'000 499,209 (151,371) 347,838

Total Infrastructure

Wodonga City Council 2020/2021 Financial Report

Notes to the Financial Report For the Year Ended 30 June 2021

Acquisition The purchase method of accounting is used for all acquisitions of assets, being the fair value of assets provided as consideration at the date of acquisition plus any incidental costs attributable to the acquisition. Fair value is the price that would be received to sell an asset (or paid to transfer a liability) in an orderly transaction between market participants at the measurement date. Where assets are constructed by Council, cost includes all materials used in construction, direct labour, borrowing costs incurred during construction, and an appropriate share of directly attributable variable and fixed overheads. In accordance with Council's policy, the threshold limits have applied when recognising assets within an applicable asset class and unless otherwise stated are consistent with the prior year. Depreciation Period

Threshold Limit

$'000

Asset recognition thresholds and depreciation periods Land & land improvements

35 - 80 years

5 - 10 years

3 years

3 - 8 years

15 - 80 years

80 years

50 - 100 years

60 years

land Buildings buildings Plant and Equipment plant, machinery and equipment fixtures, fittings and furniture computers and telecommunications library books Infrastructure roads - pavements, substructure, formation and earthworks roads - kerb, channel and minor culverts and other bridges - deck and substructure bridges - others footpaths and cycleways drainage recreational, leisure and community facilities parks, open space and streetscapes off street car parks

100 years

25 - 70 years

25 years 15 - 80 years

10 10

Land under roads Council recognises land under roads it controls at fair value. Depreciation and amortisation Buildings, land improvements, plant and equipment, infrastructure, and other assets having limited useful lives are systematically depreciated over their useful lives to the Council in a manner which reflects consumption of the service potential embodied in those assets. Estimates of remaining useful lives and residual values are made on a regular basis with major asset classes reassessed annually. Depreciation rates and methods are reviewed annually. Where assets have separate identifiable components that are subject to regular replacement, these components are assigned distinct useful lives and residual values and a separate depreciation rate is determined for each component. Road earthworks are not depreciated on the basis that they are assessed as not having a limited useful life. Straight line depreciation is charged based on the residual useful life as determined each year. Depreciation periods used are listed above and are consistent with the prior year unless otherwise stated. Repairs and maintenance 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. Leasehold improvements Leasehold improvements are recognised at cost and are amortised over the unexpired period of the lease or the estimated useful life of the improvement, whichever is the shorter. At balance date, leasehold improvements are amortised over a 10 to 50 year period.

118

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Wodonga City Council 2020/2021 Financial Report

Notes to the Financial Report For the Year Ended 30 June 2021

Valuation of land and buildings Valuation of land and buildings were undertaken by a qualified independent valuer Simon Fisher FAPI CPV, API member no. 62679. The valuation of land and buildings is at fair value, being market value based on highest and best use permitted by relevant land planning provisions. Where land use is restricted through existing planning provisions the valuation is reduced to reflect this limitation. This adjustment is an unobservable input in the valuation. The adjustment has no impact on the comprehensive income statement. Specialised land is valued at fair value using site values adjusted for englobo (undeveloped and/or unserviced) characteristics, access rights and private interests of other parties and entitlements of infrastructure assets and services. This adjustment is an unobservable input in the valuation. The adjustment has no impact on the comprehensive income statement. The land and buildings were subject to an independent valuation in 2021 by our accredited independent valuer during the Covid-19 pandemic. There was limited market activity and low sales volumes. While the valuer’s independent valuation report did not indicate impairment of land and buildings specifically as a result of the Covid-19 pandemic, it does present estimation uncertainty regarding the valuation of land and buildings by acknowledging that past cycles indicate a lag for property markets to react to economic events, and that the extent of any decline in value is presently uncertain, and may depend on the length of the Covid-19 pandemic. Also, there is not yet any comparable market evidence available to determine what, if any, impact the current Covid-19 pandemic may have on the value or marketability of the subject property, particularly in the short and medium terms. The fair value assessed may change significantly and unexpectedly over a relatively short period of time (including as a result of factors that the valuer could not reasonably have been aware of as at the date of valuation). Refer to Significant accounting policies under Overview section and Note 8.4 for further information on fair value measurement. The date of the current valuation is detailed in the following table.

Any significant movements in the unobservable inputs for land and land under roads will have a significant impact on the fair value of these assets. Details of the Council’s land and buildings and information about the fair value hierarchy as at 30 June 2021 are as follows: Level 1 $'000 -

Land Specialised land Land under roads Buildings Leasehold improvements Total

Level 2 $'000 47,002 47,002

Level 3 $'000 95,910 134,473 72,383 29 302,795

Date of Valuation Jun-21 Jun-21 Jun-21 Jun-21 Jun-21

Valuation of infrastructure Valuation of infrastructure assets has been determined in accordance with a valuation undertaken by Council's Team Leader Strategic Assets.

The date of the current valuation is detailed in the following table. The valuation is at fair value based on replacement cost less accumulated depreciation as at the date of valuation. Details of the Council’s infrastructure and information about the fair value hierarchy as at 30 June 2021 are as follows: Level 1 $'000 -

Roads Bridges

Level 2 $'000 -

Level 3 $'000 209,040 11,131

Parks, open space and streetscapes

30,636 87,476 15,651

Total

353,934

Footpaths and cycleways Drainage

Date of Valuation Jun-19 Jun-19 Jun-19 Jun-20 Jun-21

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Wodonga Council Annual Financial Report 2020 - 2021

119

Wodonga City Council 2020/2021 Financial Report

Notes to the Financial Report For the Year Ended 30 June 2021

Description of significant unobservable inputs into level 3 valuations Specialised land and land under roads is valued using a market based direct comparison technique. Significant unobservable inputs include the extent and impact of restriction of use and the market cost of land per square metre. The extent and impact of restrictions on use varies and results in a reduction to surrounding land values between 85% and 95%. The market value of land varies significantly depending on the location of the land and the current market conditions. Currently land values range between $1 and $183 per square metre.

Specialised buildings are valued using a depreciated replacement cost technique. Significant unobservable inputs include the current replacement cost and remaining useful lives of buildings. Current replacement costs are calculated on a square metre basis and ranges from $40 to $5,052 per square metre. The remaining useful lives of buildings are determined on the basis of the current condition of buildings and vary from 5 years to 72 years. Replacement cost is sensitive to changes in market conditions, with any increase or decrease in cost flowing through to the valuation. Useful lives of buildings are sensitive to changes in expectations or requirements that could either shorten or extend the useful lives of buildings.

Infrastructure assets are valued based on the depreciated replacement cost. Significant unobservable inputs include the current replacement cost and remaining useful lives of infrastructure. The remaining useful lives of infrastructure assets are determined on the basis of the current condition of the asset and vary from 1 year to 100 years. Replacement cost is sensitive to changes in market conditions, with any increase or decrease in cost flowing through to the valuation. Useful lives of infrastructure are sensitive to changes in use, expectations or requirements that could either shorten or extend the useful lives of infrastructure assets.

Reconciliation of specialised land Land under roads Parks and reserves Total specialised land

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Page 34

2021

2020

$'000

134,473 95,910 230,383

133,024 70,312 203,336

Notes to the Financial Report For the Year Ended 30 June 2021

Wodonga City Council 2020/2021 Financial Report

Note 7.1 People and relationships Council and key management remuneration (a) Related Parties Entity status Wodonga City Council is a single entity. (b) Key Management Personnel Details of persons holding the position of Councillor or other members of key management personnel at any time during the year are: Councillors

Councillor Kevin Poulton (Mayor November 2020 - present) Councillor Kat Bennett (October 2016 - present) Councillor Libby Hall (October 2016 - present) Councillor Danny Lowe (July - October 2020) Councillor Brian Mitchell (July - October 2020) Councillor Ron Mildren (October 2016 - present) Councillor Olga Quilty (November 2020 - present) Councillor Graeme Simpfendorfer (November 2020 - present) Councillor Anna Speedie (Mayor July to Oct 2020) Councillor John Watson (October 2016 - present) Chief Executive Officer Mark Dixon Deputy Chief Executive Officer/Director - City Growth, Engagement and People Director - Finance and Systems Director - Planning and Infrastructure Director - Community Development

Total Number of Councillors Total of Chief Executive Officer and other Key Management Personnel Total Number of Key Management Personnel (c) Remuneration of Key Management Personnel Total remuneration of key management personnel was as follows: Short-term benefits Long-term benefits Post employment benefits Total The numbers of key management personnel whose total remuneration from Council and any related entities, fall within the following bands:

$0 - $9,999 $10,000 - $19,999 $20,000 - $29,999 $50,000 - $59,999 $80,000 - $89,999 $180,000 - $189,999 $190,000 - $199,999 $210,000 - $219,999 $220,000 - $229,999 $230,000 - $239,999 $240,000 - $249,999 $340,000 - $349,999

2021 No. 10 5 15

2020 No. 7 5 12

2021 $

2020 $

1,109 27 98 1,234

1,087 26 99 1,212

2021 No.

2020 No.

2 2 5 1

1 1

1 1 1 15

6 1 1 1 1 1 1 12

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Wodonga Council Annual Financial Report 2020 - 2021

121

Wodonga City Council 2020/2021 Financial Report

Notes to the Financial Report For the Year Ended 30 June 2021

(d) Senior Officer Remuneration A Senior Officer is an officer of Council, other than Key Management Personnel, who: a) has management responsibilities and reports directly to the Chief Executive; or b) whose total annual remuneration exceeds $151,000. The number of Senior Officers are shown below in their relevant income bands:

Income Range: $151,000 - $159,999 $160,000 - $169,999 $170,000 - $179,999

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

Note 7.2 Related party disclosure (a) Transactions with related parties Wodonga City Council did not enter into any transactions with related parties. It is noted that prior to the appointment to Council, one councillor held and continues to hold a postion as the Chairperson of Albury Wodonga Community College. The contract awarded to the college to run the Re-use shop was entered into prior to the Key Management Personel becoming a councillor and had no influence over the decision. (b) Outstanding balances with related parties Wodonga City Council does not have any outstanding balances with related parties.

(c) Loans to/from related parties Wodonga City Council does not make loans to or receive loans from related parties. No guarantees have been provided. (d) Commitments to/from related parties Wodonga City Council has no outstanding commitments to/from related parties.

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122

Our performance

2021 No. 3 1 1 5

2020 No. 3 1 1 5

2021 $'000 817

2020 $'000 809

Notes to the Financial Report For the Year Ended 30 June 2021

Wodonga City Council 2020/2021 Financial Report Note 8 Managing uncertainties 8.1 Contingent assets and liabilities

(A) Contingent assets Developer contributions to be received in respect to estates currently under development remain unquantifiable at balance date. At 30 June 2020 Council had signed a funding agreement with the Victorian State Government for a $2.6 million contribution towards the gas gate in LOGIC industrial estate (Note 4.2). This was to be paid in two stages. $2.1 million was paid in the 2020-2021 financial year and $0.5 million is to be paid in the 2021-2022 financial year. Grant revenue of $2.1 million has been recognised in revenue at 30 June 2021 per AASB 1058. G 68

Operating lease receivables The Council has entered into commercial property leases on its investment property, consisting of surplus freehold office complexes. These properties held under operating leases have remaining non-cancellable lease terms of between 1 and 18 years. All leases include a CPI based revision of the rental charge annually. Future undiscounted minimum rentals receivable under non-cancellable operating leases are as follows: 2021 $'000 1,326 3,221 3,720 8,267

Not later than one year Later than one year and not later than five years Later than five years

2020 $'000 1,397 3,069 1,451 5,917

G 86

(b) Contingent liabilities Contingent assets and contingent liabilities are not recognised in the Balance Sheet, but are disclosed and if quantifiable, are measured at nominal value. Contingent assets and liabilities are presented inclusive of GST receivable or payable, respectively.

G 67

Superannuation Council has obligations under a defined benefit superannuation scheme that may result in the need to make additional contributions to the scheme, matters relating to this potential obligation are outlined below. As a result of the volatility in financial markets the likelihood of making such contributions in future periods exists. Future superannuation contributions In addition to the disclosed contributions, Wodonga City Council has not been required to pay any unfunded liability payments to Vision Super (2019 - 2020 nil). There were no contributions outstanding and no loans issued from or to the above schemes as at 30 June 2021. The expected contributions to be paid to the Defined Benefit category of Vision Super for the year ending 30 June 2022 are $112,650 . Insurance claims There are no major insurance claims that could have a material impact on future operations. Legal matters Council is presently involved in several legal matters which are being conducted through Council's solicitors. These involve public liability claims for personal injury and are covered under Council's public liability insurance. Liability Mutual Insurance Council is a participant of the MAV Liability Mutual Insurance (LMI) Scheme. The LMI scheme provides public liability and professional indemnity insurance cover. The LMI scheme states that each participant will remain liable to make further contributions to the scheme in respect of any insurance year in which it was a participant to the extent of its participant’s share of any shortfall in the provision set aside in respect of that insurance year, and such liability will continue whether or not the participant remains a participant in future insurance years. MAV Workcare In November 2017, the Victorian WorkCover Authority (the Authority) granted the Municipal Association of Victoria (MAV) a three-year self-insurance licence allowing it to provide workers’ compensation insurance to Victorian councils. When the MAV WorkCare Scheme commenced, there were 31 inaugural members, including the MAV. In accordance with the Authority’s decision not to renew the MAV’s self-insurance licence, the MAV WorkCare Scheme ceased operation on 30 June 2021. The MAV is continuing to support the orderly transition of claims management responsibilities to the Authority. Council was a participant of the MAV WorkCare Scheme. The MAV WorkCare Scheme participation agreement stated that each participant would remain liable to make further contributions to the Scheme in respect of any insurance year in which it was a participant to the extent of its participant’s share of any shortfall in the provision set aside in respect of that insurance year, and such liability would continue whether or not the participant remained a participant in future insurance years. The net financial impact on Council as a result of the cessation of the MAV WorkCare Scheme for the 2020-21 financial year is yet to be determined. Any obligation is dependent upon the Authority’s initial actuarial assessment of the tail claims liabilities of the MAV WorkCare Scheme. In accordance with the Workplace Injury Rehabilitation and Compensation Act 2013, there is a six year liability period following the cessation of the MAV WorkCare Scheme. During the liability period, adjustment payments may be required (or received) by Council. The determination of any adjustment payments is dependent upon revised actuarial assessments of the Scheme’s tail claims liabilities as undertaken by the Authority. (c) Guarantees for loans to other entities Wodonga City Council does not have any guarantees for loans to other entities.

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Wodonga Council Annual Financial Report 2020 - 2021

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Wodonga City Council 2020/2021 Financial Report

Notes to the Financial Report For the Year Ended 30 June 2021

G 88

8.2 Change in accounting standards Certain new Australian Accounting Standards and interpretations have been published that are not mandatory for the 30 June 2021 reporting period. Council assesses the impact of these new standards. As at 30 June 2021 there were no new accounting standards or interpretations issued by the AASB which are applicable for the year ending 30 June 2022 that are expected to impact Council.

G 89

8.3 Financial instruments (a) Objectives and policies The Council's principal financial instruments comprise cash assets, term deposits, receivables (excluding statutory receivables), payables (excluding statutory payables) and bank borrowings. Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument is disclosed in the notes of the financial statements. Risk management is carried out by senior management under policies approved by the Council. These policies include identification and analysis of the risk exposure to Council and appropriate procedures, controls and risk minimisation.

G 89

(b) Market risk Market risk is the risk that the fair value or future cash flows of council financial instruments will fluctuate because of changes in market prices. The Council's exposure to market risk is primarily through interest rate risk with only insignificant exposure to other price risks and no exposure to foreign currency risk. Interest rate risk Interest rate risk refers to the risk that the value of a financial instrument or cash flows associated with the instrument will fluctuate due to changes in market interest rates. Council's interest rate liability risk arises primarily from long term loans and borrowings at fixed rates which exposes council to fair value interest rate risk / Council does not hold any interest bearing financial instruments that are measured at fair value, and therefore has no exposure to fair value interest rate risk. Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Council has minimal exposure to cash flow interest rate risk through its cash and deposits that are at floating rates. 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: - diversification of investment product; - monitoring of return on investment; and - benchmarking of returns and comparison with budget. There has been no significant change in the Council's exposure, or its objectives, policies and processes for managing interest rate risk or the methods used to measure this risk from the previous reporting period. Interest rate movements have not been sufficiently significant during the year to have an impact on the Council's year end result.

(c) Credit risk Credit risk is the risk that a contracting entity will not complete its obligations under a financial instrument and cause Council to make a financial loss. Council have exposure to credit risk on some financial assets included in the balance sheet. Particularly significant areas of credit risk exist in relation to outstanding fees and fines as well as loans and receivables from sporting clubs and associations. To help manage this risk: - council have a policy for establishing credit limits for the entities council deal with; - council may require collateral where appropriate; and - council only invest surplus funds with financial institutions which have a recognised credit rating specified in council's investment policy. Receivables consist of a large number of customers, spread across the ratepayer, business and government sectors. Credit risk associated with the council's financial assets is minimal because the main debtor is secured by a charge over the rateable property. There are no material financial assets which are individually determined to be impaired. Council may also be subject to credit risk for transactions which are not included in the balance sheet, such as when council provide a guarantee for another party. Details of our contingent liabilities are disclosed in Note 8.1(b). The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the balance sheet and notes to the financial statements. Council does not hold any collateral.

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Wodonga City Council 2020/2021 Financial Report

G 89

Notes to the Financial Report For the Year Ended 30 June 2021

(d) Liquidity risk Liquidity risk includes the risk that, as a result of council's operational liquidity requirements it will not have sufficient funds to settle a transaction when required or will be forced to sell a financial asset at below value or may be unable to settle or recover a financial asset. To help reduce these risks Council: - have a liquidity policy which targets a minimum and average level of cash and cash equivalents to be maintained; - have readily accessible standby facilities and other funding arrangements in place; - have a liquidity portfolio structure that requires surplus funds to be invested within various bands of liquid instruments; - monitor budget to actual performance on a regular basis; and - set limits on borrowings relating to the percentage of loans to rate revenue and percentage of loan principal repayments to rate revenue. The Council's maximum exposure to liquidity risk is the carrying amounts of financial liabilities as disclosed on the face of the balance sheet and the amounts related to financial guarantees disclosed in Note 8.1(c), and is deemed insignificant based on prior periods' data and current assessment of risk. There has been no significant change in Council's exposure, or its objectives, policies and processes for managing liquidity risk or the methods used to measure this risk from the previous reporting period. With the exception of borrowings, all financial liabilities are expected to be settled within normal terms of trade. Details of the maturity profile for borrowings are disclosed at Note 5.4. Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.

G 89

(e) Sensitivity disclosure analysis Taking into account past performance, future expectations, economic forecasts, and management's knowledge and experience of the financial markets, Council believes the following movements are 'reasonably possible' over the next 12 months: - A parallel shift of + 1.0% and -0.25% in market interest rates (AUD) from year-end rates of 0.25%. These movements will not have a material impact on the valuation of Council's financial assets and liabilities, nor will they have a material impact on the results of Council's operations.

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Wodonga Council Annual Financial Report 2020 - 2021

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Wodonga City Council 2020/2021 Financial Report

Notes to the Financial Report For the Year Ended 30 June 2021

8.4 Fair value measurement Fair value hierarchy Council's financial assets and liabilities are not valued in accordance with the fair value hierarchy , Council's financial assets and liabilities are measured at amortised cost. Council measures certain assets and liabilities at fair value where required or permitted by Australian Accounting Standards. AASB 13 Fair value measurement, aims to improve consistency and reduce complexity by providing a definition of fair value and a single source of fair value measurement and disclosure requirements for use across Australian Accounting Standards. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within a fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable; and Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. For the purpose of fair value disclosures, Council has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above. In addition, Council determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. Revaluation Subsequent to the initial recognition of assets, non-current physical assets, other than plant and equipment, are measured at their fair value, being the price that would be received to sell an asset (or paid to transfer a liability) in an orderly transaction between market participants at the measurement date. At balance date, the Council reviewed the carrying value of the individual classes of assets measured at fair value to ensure that each asset materially approximated its fair value. Where the carrying value materially differed from the fair value at balance date, the class of asset was revalued.

Fair value valuations are determined in accordance with a valuation hierarchy. Changes to the valuation hierarchy will only occur if an external change in the restrictions or limitations of use of an asset result in changes to the permissible or practical highest and best use of the asset. In addition, Council undertakes a formal revaluation of land, buildings, and infrastructure assets on a regular basis ranging from 2 to 5 years. The valuation is performed either by experienced council officers or independent experts. Where the assets are revalued, the revaluation increments are credited directly to the asset revaluation reserve except to the extent that an increment reverses a prior year decrement for that class of asset that had been recognised as an expense in which case the increment is recognised as revenue up to the amount of the expense. Revaluation decrements are recognised as an expense except where prior increments are included in the asset revaluation reserve for that class of asset in which case the decrement is taken to the reserve to the extent of the remaining increments. Within the same class of assets, revaluation increments and decrements within the year are offset.

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 of disposal 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.

8.5 Events occurring after balance date There have been no significant events occurring after the balance date which may affect the Council's operations or the results of those operations, except for noting that the COVID-19 pandemic is ongoing and it is not practicable to estimate the potential impact after the reporting date.

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Wodonga City Council 2020/2021 Financial Report

Notes to the Financial Report For the Year Ended 30 June 2021

Note 9 Other matters

9.1 Reserves (a) Asset revaluation reserves 2021 Property Land Industrial land Land under roads Land held for sale Buildings Plant and Equipment Infrastructure Roads Footpaths Kerb and channel Drainage Bridges and major culverts Parks, open spaces and streetscapes Total asset revaluation reserves 2020 Property Land Industrial land Land under roads Buildings Plant and Equipment Infrastructure Roads Footpaths Kerb and channel Drainage Bridges and major culverts Parks, open spaces and streetscapes Total asset revaluation reserves

Balance at beginning of reporting period $'000

28,958 15,511 12,411 16,486 73,366 314

Increment (decrement) $'000

Balance at end of reporting period $'000

33,466 8,255 2 602 18,168 60,493

62,424 23,766 12,413 602 34,654 133,859

314

70,223 9,416 20,179 39,782 10,582 2,463 152,645 226,325

9,176 9,176 69,669

70,223 9,416 20,179 39,782 10,582 11,639 161,821 295,994

28,877 15,511 12,411 16,486 73,285

81 81

28,958 15,511 12,411 16,486 73,366

314 70,223 9,416 20,179 38,085 10,582 2,463 150,948 224,547

314

1,697 1,697 1,778

70,223 9,416 20,179 39,782 10,582 2,463 152,645 226,325

The asset revaluation reserve is used to record the increased (net) value of Council's assets over time.

(b) Waste Management Reserve

Balance at beginning of reporting period $'000

Transfer from accumulated surplus $'000

Transfer to accumulated surplus $'000

Balance at end of reporting period $'000

2021 Waste management reserve Total Other reserves

523 523

108 108

631 631

2020 Waste management reserve Total Other reserves

523 523

The waste management reserve was new in the 2020 financial year and accounts for any surplus / (deficit) from all waste charges. Any use of this reserve is subject to the Waste Management Reserve Policy and Council resolution.

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Wodonga Council Annual Financial Report 2020 - 2021

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Notes to the Financial Report For the Year Ended 30 June 2021 2021 $'000

2020 $'000

Surplus/(deficit) for the year Depreciation/amortisation (Profit)/loss on disposal of property, infrastructure, plant and equipment Finance costs Contributions - Non-monetary assets Impairment loss on land and buildings

10,550 12,087 (251) 1,396 (7,814) 15,996

10,523 11,929 1,214 1,472 (10,918) 4,346

Change in assets and liabilities: (Increase)/decrease in trade and other receivables (Increase)/decrease in prepayments (Increase)/decrease in accrued income (Increase)/decrease in inventories Increase/(decrease) in trade and other payables Increase/(decrease) in provisions Net cash provided by/(used in) operating activities

1,447 (31) 62 (22) 831 (89) 34,162

(112) 380 50 (16) (524) (93) 18,251

9.2 Reconciliation of cash flows from operating activities to surplus/(deficit)

9.3 Superannuation Wodonga City Council makes the majority of its employer superannuation contributions in respect of its employees to the Local Authorities Superannuation Fund (the Fund). This Fund has two categories of membership, accumulation and defined benefit, each of which is funded differently. Obligations for contributions to the Fund are recognised as an expense in Comprehensive Operating Statement when they are made or due. Accumulation Council makes both employer and employee contributions to The Fund's accumulation category, Vision MySuper/Vision Super Saver, on a progressive basis. Employer contributions are normally based on a fixed percentage of employee earnings (for the year ended 30 June 2021, this was 9.5% as required under Superannuation Guarantee (SG) legislation). Defined Benefit Council does not use defined benefit accounting for its defined benefit obligations under the Fund's Defined Benefit category. This is because the Fund's Defined Benefit category is a pooled multi-employer sponsored plan. There is no proportional split of the defined benefit liabilities, assets or costs between the participating employers as the defined benefit obligation is a floating obligation between the participating employers and the only time that the aggregate obligation is allocated to specific employers is when a call is made. As a result, the level of participation of [Employer name] in the Fund cannot be measured as a percentage compared with other participating employers. Therefore, the Fund Actuary is unable to allocate benefit liabilities, assets and costs between employers for the purposes of AASB 119 Employee Benefits. Funding arrangements Council makes employer contributions to the Defined Benefit category of the Fund at rates determined by the Trustee on the advice of the Fund Actuary. A triennial actuarial review for the Defined Benefit category as at 30 June 2020 was conducted and completed by the due date of 31 December 2020. The vested benefit index (VBI) of the Defined Benefit category of which Council is a contributing employer was 104.6%. The financial assumptions used to calculate the VBI were: Net investment returns 5.6% pa Salary information 2.5% pa for two years and 2.75% pa thereafter Price inflation (CPI) 2.0% pa. As at 30 June 2021, an interim actuarial investigation is underway as the Fund provides lifetime pensions in the Defined Benefit category. Vision Super has advised that the VBI at 30 June 2021 was 109.7%. The financial assumptions used to calculate this VBI were: Net investment returns 4.8% pa Salary information 2.75% pa Price inflation (CPI) 2.25% pa.

The VBI is used as the primary funding indicator. Because the VBI was above 100%, the 30 June 2020 actuarial investigation determined the Defined Benefit category was in a satisfactory financial position and that no change was necessary to the Defined Benefit category’s funding arrangements from prior years.

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Wodonga City Council 2020/2021 Financial Report

Notes to the Financial Report For the Year Ended 30 June 2021

Employer contributions Regular contributions On the basis of the results of the 2020 triennial actuarial investigation conducted by the Fund Actuary, Council makes employer contributions to the Fund’s Defined Benefit category at rates determined by the Fund’s Trustee. For the year ended 30 June 2021, this rate was 9.5% of members' salaries (9.5% in 2019-2020). This rate is expected to increase in line with any increases in the SG contribution rate and was reviewed as part of the 30 June 2020 triennial valuation. In addition, Council reimburses the Fund to cover the excess of the benefits paid as a consequence of retrenchment above the funded resignation or retirement benefit. Funding calls If the Defined Benefit category is in an unsatisfactory financial position at an actuarial investigation or the Defined Benefit category’s VBI is below its shortfall limit at any time other than the date of the actuarial investigation, the Defined Benefit category has a shortfall for the purposes of SPS 160 and the Fund is required to put a plan in place so that the shortfall is fully funded within three years of the shortfall occurring. The Fund monitors its VBI on a quarterly basis and the Fund has set its shortfall limit at 97%. In the event that the Fund Actuary determines that there is a shortfall based on the above requirement, the Fund’s participating employers (including Council) are required to make an employer contribution to cover the shortfall. Using the agreed methodology, the shortfall amount is apportioned between the participating employers based on the pre-1 July 1993 and post-30 June 1993 service liabilities of the Fund’s Defined Benefit category, together with the employer’s payroll at 30 June 1993 and at the date the shortfall has been calculated. Due to the nature of the contractual obligations between the participating employers and the Fund, and that the Fund includes lifetime pensioners and their reversionary beneficiaries, it is unlikely that the Fund will be wound up. If there is a surplus in the Fund, the surplus cannot be returned to the participating employers. In the event that a participating employer is wound-up, the defined benefit obligations of that employer will be transferred to that employer’s successor. The 2020 triennial actuarial investigation surplus amounts An actuarial investigation is conducted annually for the Defined Benefit category of which Council is a contributing employer. Generally, a full actuarial investigation is conducted every three years and interim actuarial investigations are conducted for each intervening year. A full investigation was conducted as at 30 June 2020. The Fund’s actuarial investigation identified the following for the Defined Benefit category of which Council is a contributing employer: 2020 (Triennial) $m

- A VBI Surplus - A total service liability surplus - A discounted accrued benefits surplus

100.0 200.0 217.8

2019 (Interim) $m 151.3 233.4 256.7

The VBI surplus means that the market value of the fund’s assets supporting the defined benefit obligations exceed the vested benefits that the defined benefit members would have been entitled to if they had all exited on 30 June 2020. The total service liability surplus means that the current value of the assets in the Fund’s Defined Benefit category plus expected future contributions exceeds the value of expected future benefits and expenses as at 30 June 2020. The discounted accrued benefit surplus means that the current value of the assets in the Fund’s Defined Benefit category exceeds the value of benefits payable in the future but accrued in respect of service to 30 June 2020. Council was notified of the 30 June 2020 VBI during August 2020 (2019: August 2019). The 2021 interim actuarial investigation An interim actuarial investigation is being conducted for the Fund’s position as at 30 June 2021 as the Fund provides lifetime pensions in the Defined Benefit category. It is anticipated that this actuarial investigation will be completed by October 2021. Superannuation contributions Contributions by Council (excluding any unfunded liability payments) to the above superannuation plans for the financial year ended 30 June 2021 are detailed below: Scheme Vision super Various superannuation funds

Type of Scheme Rate Defined benefit 9.50% Accumulation fund 9.50%

2021 $'000 72 1,991

2020 $'000 76 1,947

The expected contributions to be paid to the Defined Benefit category of Vision Super for the year ending 30 June 2022 is $112,650.

Wodonga Council Annual Financial Report 2020 - 2021 Page 43

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Wodonga City Council 2020/2021 Financial Report

Notes to the Financial Report For the Year Ended 30 June 2021

9.4 Adjustments directly to equity Following a revaluation of land, buildings and parks and open space assets, a number of found assets were identified for each asset category. In addition, it was identified that a number of land and building assets had been duplicated in the asset register. Work has continued to verify asset register balances to ensure accurate asset data is available for upload into a new asset management system, which is identified as a capital project for the 2021-2022 and 2022-2023 financial years. Accordingly, there were a number of adjustments to opening accumulated depreciation to ensure the financial statement balances reconcile back to the asset registers. These balancing items have been brought to account as an adjustment to Wodonga City Council's accumulated surplus in the 2019-2020 year.

Assets contributed to Council Buildings Contributed building assets are valued at fair value Contributed building assets accumulated depreciation Land Contributed Land assets are valued at fair value Bridges Contributed bridge assets are valued at fair value and prior year adjustment Contributed bridge assets accumulated depreciation and prior year adjustment Drainage Contributed drainage assets are valued at fair value Contributed drainage assets accumulated depreciation and prior year adjustment Footpaths Contributed footpath assets are valued at fair value and prior year adjustment Contributed footpath assets accumulated depreciation and prior year adjustment Parks and Open space Contributed parks and open space assets are valued at fair value Roads Contributed roads assets are valued at fair value Contributed road assets accumulated depreciation and prior year adjustment Contributed kerb and channel assets are valued at fair value Contributed kerb and channel assets accumulated depreciation and prior year adjustment Assets written-off or disposed of by Council Buildings Write off of duplicate building assets at fair value Write off of duplicate building assets accumulated depreciation Land Write off of duplicate land assets at fair value Work in Progress Prior year adjustment Revaluation Reserve Write off of duplicate land assets at fair value

2020 $'000

2,779 (733)

2,406

141 (1,759)

642 (32)

1,858 (1,405)

353

1,121 2,774 109 1,485

(5,530) 1,108

(854)

2021 $'000

81 4,546 2020 $'000

Reconciliation of adjustments to equity to 2019-2020 Balance Sheet and Statement of Changes in Equity Recognition of assets contributed to Council - infrastructure Contributed bridge assets Contributed drainage assets Contributed footpath assets Contributed parks, open space and streetscape assets Contributed roads assets Contributed kerb and channel assets Total assets contributed to Council - infrastructure -

(1,618) 610 453 353 3,895 1,594 5,287

Recognition of assets contributed to Council - property Contributed building assets Contributed Land assets Total assets contributed to Council - property

2,046 2,406 4,452

Recognition of assets disposed of by Council - property Disposal and write-off of building assets Disposal and write-off of land assets Disposal and write-off of work in progress assets Total assets disposed of by Council - property

(4,422) (773) 2 (5,193)

4,546

Net 2019-2020 change (increase) to Balance Sheet (property, infrastructure, plant and equipment) and Statement of Changes in Equity Page 44

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2021 $'000

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Wodonga City Council 2020/2021 Financial Report

Notes to the Financial Report For the Year Ended 30 June 2021

Reconciliation of changes to the 2019-2020 Balance Sheet and Statement of Changes in Equity 2019-2020 Original Balances $'000

Balance Sheet Property, infrastructure, plant and equipment Total non-current assets Total assets Net assets Accumulated Surplus Reserves Total Equity

646,169 652,046 698,966 661,619 434,852 226,767 661,619 2019-2020 Original Balances $'000

Statement of Changes in Equity Accumulated surplus Revaluation Reserve Total Equity

434,852 226,244 661,619

Impact Increase/ (decrease) $'000 4,546 4,546 4,546 4,546 4,465 81 4,546 Impact Increase/ (decrease) $'000 4,465 81 4,546

Restated 2019-2020 Balances $'000 650,715 656,592 703,512 666,165 439,317 226,848 666,165 Restated 2019-2020 Balances $'000 439,317 226,325 666,165

Wodonga Council Annual Financial Report 2020 - 2021 Page 45

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Wodonga City Council 2020/2021 Financial Report

Notes to the Financial Report For the Year Ended 30 June 2021

10 Change in accounting policy AASB 1059 Service Concession Arrangements: Grantors (AASB 1059) (applies 2020/21 for LG Sector) Council has adopted AASB 1059 Service Concession Arrangements: Grantors , from 1 July 2020. This has resulted in no material adjustments to the amounts recognised in the financial statements. AASB 2018-7 Amendments to Australian Accounting Standards - Definition of Material (applies 2020/21 for LG Sector)

Council has adopted AASB 2018-7 Amendments to Australian Accounting Standards - Definition of Material, from July 1 2020. All information has been disclosed where material in nature, amount and impact to ensure promary users of the general purpose financial statements are informed and can make decisions on the basis of the information disclosed regarding the entity. AASB 2019-1 Amendments to Australian Accounting Standards - References to the Conceptual Framework (applies 2020/21 for LG Sector) Council has adopted AASB 2019-1 Amendments to Australian Accounting Standards - References to the Conceptual Framework from 1 July 2020. Financial statements present fairly the financial position, financial performance and cash flows of Council. There is a fair presentation of the effects of transactions, other events and conditions in accordance with definitions and recognition criteria for assets, liabilities, income and expenses set out in the Framework Conceptual Framework for Financial Reporting.

It is not expected that these standards will have any significant impact on council.

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Office: 104 Hovell St, Wodonga, VIC 3690 Post: PO Box 923, Wodonga, VIC 3689 Phone: (02) 6022 9300 Fax: (02) 6022 9322 Email: info@wodonga.vic.gov.au wodonga.vic.gov.au

Wodonga Council Annual Report 2020-2021

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