MUNICIPALASSOCIATIONOF VICTORIAANNUAL REPORT2010/11

The voice of local government

PurposeTo promote the efficient carrying outof municipal government throughoutthe state of Victoria and to watch overand protect the interests, rights andprivileges of municipal corporations.Municipal Association Act 1907

Published by Municipal Association of VictoriaLevel 12, 60 Collins Street, Melbourne VIC 3000GPO Box 4326, Melbourne 3001Telephone: 03 9667 5555, Facsimile: 03 9667 5550Email: inquiries@mav.asn.au, Website: www.mav.asn.au

Editor Imogen KellyDesign Frank Design Pty LtdPhotography Portraits: Chris KapaMAV Events: Paul Jones PhotographyJarrad Drummond Photography

This report is produced on a combination of elementalchlorine-free papers, sourced from sustainably managedforests and 100% recycled paper, and printed using vegetablebased inks by an environmentally responsible printer. Thisreflects the Municipal Association of Victoria’s commitment to

environmental sustainability.

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Year in Review

President’s Report

MAV Board

CEO’s Report

Finance and Productivity

Workforce

Human Services and Public Health

Planning

Insurance

Environment

Transport and Infrastructure

Emergency Management

Governance andProfessional Development

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The MAV Team

Governance

Operations

MAV Represenatives

Civic Mutual Plus Members

Fidelity Members

Financial Overview

Guide to the Financial Report

MAV Financials

MAV Insurance Financials

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Year in Review

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Promises and morepromisesElection commitments wereachieved from all major politicalparties in the lead up to thestate election in November.Promises responded to 46priority requests detailed in alocal government action plan.

Heat turned up oncouncilsAs national policy on climatechange progressed, the MAVundertook critical analysis onthe implications of proposedcarbon pricing and research tobetter understand the status of,and barriers to, adaptationplanning by Victorian councils.

Planning for morechild’s playCouncils’ planning forkindergarten reforms improvedconsiderably this year as aresult of the MAV’s advocacyand support in the form ofworkshops, pilots and one onone assistance.

Councils to influencelocal health outcomesA draft agreement wasbrokered on localgovernment’s role in primaryhealth care and the manner inwhich councils should beengaged in the establishmentand ongoing operation ofMedicare Locals.

Councils step up toimprove planningA new program to helpcouncils improve theirperformance and demonstrateaccountability in theadministration, managementand delivery of planningservices attracted participationby 22 councils in its first year.

Red tape unraveledResearch commissioned toidentify the costs of proposedfurther regulation resulted in asignificant reduction in thenumber of measures includedin a new performanceframework for localgovernment.

Electric debate drivessensible solutionAn alternative solution wassought to deliver the safetyoutcomes intended by changesto government regulations fortree clearances around electricallines that threatened significantfinancial, environmental andamenity impacts for councils and

Councillors set tograduateSeventeen councillors andofficers formed the first intakein a graduate programdeveloped in partnership withSwinburne University.

their communities.

Rapid response to shift instrategyMember consultation structureswere used to respond withspeed and certainty during aperiod of significant change inmetropolitan and urban growthpolicy and strategy followingthe state election.

Levy trashed in pressStrong advocacy andwidespread media coverageensued when the VictorianGovernment brought forwardan increase to the landfill levy,imposing an additional $43million burden on councilbudgets and the community.

Keeping a lid onemergenciesCouncils were extensivelyconsulted in the developmentof a three-year strategy toaddress growing demands oncouncils to deliver emergencymanagement services.

Risky businessIndependent experts wereengaged to review legal andrisk management services forinsurance members to ensureservices are of the highestquality and keep pace withchanging needs.

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President’s ReportI am pleased to present this annual report whichprovides a summary of our achievements againstthe objectives and actions in our strategic planfor 2010-11.

The plan identified the state and federal government electionsas crucial events that we had to both manage and make themost of the opportunities presented.The federal election delivered a cliff hanger. The negotiationsthat ensued to form government resulted in a number of localgovernment priorities ascending the order, including holdinga referendum at the next election on constitutional recognitionfor local government; a review of the rural and regional fundingframework to assess the formula for allocating existing fundingand ensure equitable distribution; progressing developmentof a price on carbon; priority roll-out of the NationalBroadband Network in regional areas; and a new $800 millionlocal infrastructure program with projects to be identified bylocal communities.Importantly, the Australian Government reaffirmed itscommitment to a tripartite agreement for the delivery of HACCservices in Victoria and acknowledged the importantcontribution of local government as a key planner and providerof children’s services that should be actively engaged in thekindergarten reforms.Heading into a state election that was expected to be tightlycontested, we finally began to see the fruits of our labour onsome of the more intractable issues for local government thathad been testing our mettle, sometimes for years.We welcomed many announcements from all sides ofpolitics including funding and policy commitments on wastemanagement and recycling initiatives, infrastructure, landuse planning, public transport, community safety, libraries,gaming and support for people with disabilities and theircarers among others.

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In the immediate aftermath of the election our priority wasestablishing engagement with the new Victorian Government.Our focus was on trying to shore up the promises made to localgovernment and to achieve some certainty on critical areas andprojects that the Government looked likely to take anotherposition on, or possibly discontinue.The change in government brought new opportunities toreinvigorate our advocacy efforts. But a period of adjustmentalways follows a change of this magnitude. Progress wasincremental as the Government found its feet and concentratedon delivering its election promises.There were a number of good outcomes for councils from thestate election including promises of significant funding forroads, infrastructure and upgrading street lights in addition

On a personal note I was both honoured and privileged toagain be given the opportunity to lead local government for thenext two years. The old and new faces around the board tableare working effectively together with the staff to deliver thestrategic plan for next year. I congratulate my board colleagueson their election and look forward to continuing the productiverelationship we’ve established.In closing, I wish to thank our Chief Executive Officer, RobSpence and his talented team for their unwavering supportand tireless efforts to represent the sector again this year.

CR BILL MCARTHURPresident

to a commitment to reviewing intergovernmental arrangementsbetween state and local government.We worked hard to secure all these commitments, most of whichwere confirmed when the Government handed down its firstbudget in May. Some post budget surprises show we still havesome work to do in developing the fledgling relationshipbetween local government and the new Victorian Government.As a peak body our overarching objective is to identify the issuesof most common importance to our members and leverage thepower of our collective voice to achieve results.In no way was this better demonstrated this year than thecampaign for funding to help with the costs of upgrading tomore energy efficient streetlights. This work combined goodpolicy with united action to achieve funding commitments fromboth the Australian and Victorian governments. It was a greatresult for councils and shows what we can do when we worktogether to propose sensible solutions.

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CR BILL MCARTHURGolden Plains Shire CouncilPRESIDENT

MAV Board MAV Audit CommitteeMAV Insurance CommitteeCouncillor 1991 – 1994 (Grenville),1996 – presentMayor 2004, 2005Australian Local GovernmentAssociation BoardChair, MAV Councillor WorkcoverSteering CommitteeVictorian Councillor Service Awards, 15 years

CR GEOFF GOUGHManningham City CouncilDEPUTY PRESIDENT(METROPOLITAN)METROPOLITAN EASTREPRESENTATIVEChair, interim Planning Advisory GroupCouncillor 1997 - presentMayor 2002, 2007, 2011Australian Local GovernmentAssociation BoardMAV Councillor Workcover SteeringCommittee

CR LISA MAHOODWodonga City CouncilDEPUTY PRESIDENT(RURAL)RURAL NORTH EASTREPRESENTATIVECouncillor 2000 – presentMayor 2002, 2003, 2004, 2005,2006Deputy Mayor 2001Alternate, Australian Local GovernmentAssociation BoardMAV Councillor Workcover SteeringCommitteeDeputy Chair, North East Water

CR CORAL ROSSBoroondara City CouncilMETROPOLITANSOUTH EASTREPRESENTATIVE

Alternate, MAV Audit CommitteeDeputy Chair, interim Planning AdvisoryGroupDeputy Chair, Human Services AdvisoryGroupCouncillor 2002 - presentMayor 2007, 2008Vice President (Metro) Australian LocalGovernment Women’s Association

CR MARY LALIOSWhittlesea City CouncilINTERFACEREPRESENTATIVE

MAV Audit CommitteeCouncillor 2005 - presentMayor 2008, 2009, 2010Victorian Bicycle Advisory CommitteeYarra Plenty Regional Library BoardYMCA (Whittlesea)Plenty Valley Community Health Board

Victorian Councillor Service Awards,Mayor Emeritus

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CR ROD FYFFEGreater Bendigo City CouncilRURALNORTH CENTRALREPRESENTATIVE

MAV Insurance CommitteeChair, Environment Advisory GroupCouncillor 1996 – presentMayor 2004, 2005, 2011Ministerial Advisory Council on LibrariesState Library Public Libraries AdvisoryCommitteeAlternate representative on theAustralian Packaging Covenant CouncilVictorian Councillor Service Award,

CR JEFF AMOSWellington Shire CouncilRURALGIPPSLANDREPRESENTATIVE

Environment Advisory GroupProfessional Development ReferenceGroupCouncillor 2003 – presentMayor 2004, 2011Deputy Mayor 2005, 2007Chair, West Gippsland CatchmentManagement Authority CatchmentEcosystem Advisory GroupExecutive Member, RoadSafe Gippsland

CR KEN GALEMoyne Shire CouncilRURALSOUTH WESTREPRESENTATIVE

Chair, Human Services Advisory GroupCouncillor 2004 - presentMayor 2008, 2009Chair, Rural Councils VictoriaTimber Towns Victoria

CR GAETANO GRECODarebin City CouncilMETROPOLITANCENTRALREPRESENTATIVE

Councillor 2008 - presentInner North Training Group BoardApprenticeship Plus BoardSpectrum Migrant Resource CentreBoard2009 McArthur Fellowship Award

20 Years

CR GEOFF LAKEMonash City CouncilMETROPOLITANSOUTHREPRESENTATIVE

Councillor 2000 – presentMayor 2002, 2003President, Australian Local GovernmentAssociation (until November 2010)Metropolitan Fire and EmergencyServices BoardTrustee, Vision Super

CR JOHN SIPEKMoonee Valley City CouncilMETROPOLITANWESTREPRESENTATIVE

Councillor 2005 – presentMayor 2011Deputy Mayor 2009Alternate, Australian Local GovernmentAssociation BoardMAV Representative, AustralianPackaging Covenant CouncilMetropolitan Waste ManagementGroup BoardDirector, Qantas Superannuation Planand Audit Committee member

CR DAVID CLARKPyrenees Shire CouncilRURALSOUTH CENTRALREPRESENTATIVE

Deputy Chair, Environment AdvisoryGroupCouncillor 1992-1994, 1996-2004,2008 - presentMayor 1999, 2003, 2004, 2010Central Highlands Regional LibraryCorporation BoardWestern Highway Action Committee

CR REID MATHERBuloke Shire CouncilRURALNORTH WESTREPRESENTATIVE

Councillor 2003 – presentMayor 2005, 2006, 2007, 2008,2009Minister for Agriculture’s DroughtReference GroupChair, North Western MunicipalitiesAssociationActing Chair, Alliance of Councils forRail Freight DevelopmentVictorian Councillor Service Awards,Mayor Emeritus

Director, ISIS Primary CareVictorian Multicultural Commissioner

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CEO’s ReportDespite a change in government this year our overallgame plan didn’t shift that much.

While our short term focus was to maximise the potential benefitfrom the elections, our attention remained on the longer termstrategy to improve the productivity of local government andquality of services.Councils have been quick to embrace a new program to improveperformance in planning processes. This program was conceivedfollowing a damning report by the Auditor General. It is the firstsector-led initiative of its kind in Australia and will act as a catalystfor significant improvement in planning practices across Victoria.The uptake by councils has defied the considerable price tagassociated with the program and results thus far have beenencouraging. The first two intakes this year have undergone anintensive audit and review of their planning processes andparticipating councils now have individual improvement plans inplace. We expect all councils will be involved in the programwithin three years.Our procurement service returned its first surplus in the last quarterof this year and is on track to achieve its first full year surplus resultnext year as predicted. Most importantly it is driving real savingsand efficiencies for councils as well as providing a vehicle forimproving the procurement practices and performance of councils.These sorts of reforms require enormous courage. It has been along and, at times, arduous road but we can’t afford to shirk thesesorts of reforms when they have so much potential to drive realtransformation for our sector.

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Another of these long term reforms that required considerabletime and attention this year was establishing a common ITplatform that would be capable of eventually delivering anynumber of shared services.We came very close but didn’t quite achieve the critical mass ofcouncils needed to start work on building the platform. This wasalways going to be a big mountain to climb. It requires a biginvestment and a carefully considered leap of faith by thepioneering councils and those councils should be commended fortheir bravery, foresight and willingness to explore the possibilities.Implementing shared services is still the most significant untappedopportunity to reform our sector. We remain hopeful of salvagingthe considerable progress made this year to mount anotherattempt to build a system capable of delivering the substantialimprovement envisaged by this project.These initiatives build on our work to improve financial and assetmanagement practices in Victoria, which is now recognisednationally and internationally.This reform pathway will ultimately be critical to our success (orotherwise) in arguing for appropriate funding. It is not enough just

One of the best attributes of local government is the collegiatenature of our sector. We are only as strong as our weakest link.There is a strategic advantage in the sector hanging together asone to drive our own reforms and convince our communities andother levels of government of our capacity to get things done atthe coalface.Operationally we’ve come full circle this year. We’ve flattened ourorganisational structure to enable us to be more nimble andflexible in our response. Our financial results this year are solid.We’ve clawed back most of the impact of the 2009 bushfires onthe MAV Insurance accounts and recorded a minor deficit for theAssociation on account of the impact of the call to top up thedefined benefit superannuation fund.I commend the considerable achievements of our relatively smallbut talented staff and extend my thanks to our President, Cr BillMcArthur and past and present members of the Board for theirleadership and encouragement this year.

ROB SPENCEChief Executive Officer

to be a squeaky wheel. We must be able to demonstrate that wehave robust services and processes in place across the sector andthat we are operating at our maximum productivity.

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