Annual report - hepburn.vic.gov.au · Rapid growth took place through to the late 1800s, when gold supplies waned and ... Area – 1,470 square kms length of local roads – 1,115

Annual report2010-2011

2 Hepburn SHire CounCil AnnuAl report 2010-2011

Section 1 3

n Shire Profile 3

n Our Purpose and Values 4

n Strategic Framework 4

n The Year in Review 5

n Key Events and Initiatives 6

n Message from the Mayor & CEO 8

n Financial Snapshot 10

n Our Councillors 12

n Our Organisation 14

Section 2 15

Section 3 21

Section 4 25

Section 5 31

Section 6 34

Section 7 37

Section 8 41

Section 9 44

ContentsOur Annual ReportThis report documents Council’s performance during 2010-2011 against the 2009-2013 Council Plan and the 2010-2011 Budget. It also highlights achievements and disappointments for the year, and the challenges and key programs for the year ahead.

This report also includes comprehensive corporate governance information and detailed audited financial statements. An Annual Report is required to be prepared and lodged each year under the Local Government Act.

Street parade at Chillout, Daylesford

Front cover photographs:Main picture - Central Springs, Hepburn SpringsBottom L to r - Clunes Town Hall, Creswick town scene, Trentham Railway Station, Daylesford Lake and Boathouse cafephotos courtesy of Dale callahan

AnnuAl report 2010-2011 Hepburn SHire CounCil 3

Shire profile

Section one

LocationHepburn Shire is located in the Central Highlands region of Victoria, about 110 kilometres north-west of Melbourne. The Shire is bounded by Central Goldfields and Mount Alexander Shires in the north, Macedon Ranges Shire in the east, Moorabool Shire in the south, and the City of Ballarat and Pyrenees Shire in the west.

CharacteristicsHepburn Shire is a predominantly rural area, with many townships, villages and rural-residential areas. The main townships are Daylesford, Hepburn Springs, Creswick, Clunes and Trentham. Rural land is used largely for agriculture (particularly sheep and cattle grazing and potato and crop growing) and forestry, with some viticulture. Tourism is an important industry, with the Shire containing 80% of Australia’s mineral spring reserves.

HistoryHepburn is named after Captain John Hepburn, an early squatter who established the Smeaton Hill Run.

The original inhabitants of the Hepburn area were the Jaara (Dja Dja Wurrung) Aboriginal people. European settlement dates from the late 1830s, with land used mainly for grazing and crop growing.

Gold was first discovered in the area in 1851, prompting the establishment of many townships. Rapid growth took place

through to the late 1800s, when gold supplies waned and many mines were closed, leading to population loss. Land was then used mainly for timber milling and grazing. The townships of Daylesford and Hepburn/Hepburn Springs benefited from tourism during the late 1800s and early 1900s, due the attraction of the mineral springs and the areas becoming spa resorts.

FormationHepburn Shire was created in January 1995 by the amalgamation of the former Shires of Creswick, Daylesford and Glenlyon, the Clunes portion of the Shire of Talbot and Clunes, and the Trentham portion of the Shire of Kyneton.

PopulationAt 30 June 2010, the estimated population of the Shire was 14,974 – an increase of 1.09% from 2009.

Population Growth

2004 – 14,3472005 – 14,2042006 – 14,2162007 – 14,3192008 – 14,4892009 – 14,8032010 – 14,974

Source: Australian Bureau of Statistics, Cat. No. 3218.0 - Regional Population Growth, Australia, 2009

0

3000

6000

9000

12,000

15,000

POPulAtiOn GROwth

Source: Australian Bureau of Statistics, Cat. No. 3218.0 - Regional Population Growth, Australia, 2009

2004 2005 2006 2007 2008 2009 2010

Hepburn Shire Ward Map


Our Purpose The Shire’s 2009-2013 Council Plan defines four fundamental commitments of Council:n We will deliver good governance to the Hepburn Shiren We will help improve economic prosperityn We will assist our residents to improve the health, safety

and vibrancy of our communitiesn We will guide our Shire towards environmental

sustainability

Our Values n accountability - We will be responsible for our choices.

We will acknowledge and learn from our mistakesn respect - We will accept people’s differences. We will

look for the best in people and value their contribution. We will treat people with respect and dignity

n excellence - We will perform to our best ability. We will commit to learning and growing. We will strive to achieve the organisation’s long term vision

n trust - We will encourage creativity and innovation. We will value everyone’s contribution. We will lead by example. We will act honestly

n Fun - We will acknowledge and celebrate our successes. We believe in getting involved. We will promote a healthy sense of humour

Strategic FrameworkThe 2009-2013 Council Plan, which makes four over-arching commitments, drives the strategic direction of Council. The Plan contains 75 specific initiatives under the headings of Good Governance, A More Prosperous Economy, Healthy Safe and Vibrant Communities, and Environmental Sustainability. Council has either completed or commenced 70 of the 75 initiatives.

Strategic Planning FrameworkThe Strategic Resource Plan, which flows from the Long Term Financial Plan, summarises the financial and non-financial impacts of Council’s objectives and strategies and determines the sustainability of these objectives and strategies.

The Annual Budget is then framed within this Plan, taking into account the activities and initiatives included in the Annual Budget which contribute to achieving the objectives specified in the Council Plan.

The diagram below depicts the strategic planning framework of Council.

FAst FActsArea – 1,470 square kmslength of local roads – 1,115 kmsnumber of property assessments – 10,421 Males – 6,675*Females – 7,058*Australian citizens – 12,414** BAsed on 2006 ABs sTATIsTICs

Shire profile

Medium term planning and sustainability(4 years)

short term planning(12 months)

Accountability(Year end)

council Planstrategic objectivesstrategiesstrategic indicatorsstrategic resource plan(incl standard statement)

standard statementsActivities & initiativesKey strategic activitiesOther information

standard statementsFinancial statementsPerformance statement

Budget

Audited statements

Fundamental commitments

initiatives commenced/completed

Good Governance 25 24

A More Prosperous economy

16 16

Healthy safe & Vibrant Communities

17 17

environmental sustainability

17 13

total 75 70

Raglan Street, Daylesford


Section one

CORPORATE PLAN COMMITMENT

ACHIEVEMENTS DISAPPOINTMENTS CHALLENGES THE YEAR AHEAD COMMUNITY SATIFACTION RESULTS

we will deliver good governance to the hepburn shireFor more information see page 15

Purchase of the new Corporate Information system

Purchasing Policy updated and Preferred supplier Register established

Risk Policy and Framework adopted

Community engagement Framework adopted

Road Asset Management Plan and Bridge Asset Management Plan adopted

Review of all Council Policies commenced

Review of all Policies not completed

Further work required to complete all Asset Management Plans

Further work required to action all items on the Audit Register

Managing flood recovery works in tandem with normal budgeted capital works

Complying with the increasing volume and complexity of legislative obligations

Managing the asset renewal gap

Working towards financial sustainability

Implementation of the Corporate Information system

Undertaking formal procurement training for staff

Completing review of special Committees and Advisory Committees

overall Performance:

2010 – 56

2011 – 52

Median - 63

we will help improve economic prosperityFor more information see page 21

Visitor numbers increased by 30.7%

overnight visitor numbers for the ‘spa Country’ increased by 31.9%

economic development strategy completed

Launch of ‘Buy Local – It make cents’ campaign

Attendance at draw-card events increased by 22%

discretionary spending declined

day trip visitor numbers declined in the ‘spa Country’ by 12.1%

Impact of floods on local businesses and the agricultural sector

Retaining visitation numbers to the region given strong Australian dollar

Maintaining continued growth in tourism numbers and spending

dealing with the vagaries of international forces that adversely impact the agricultural sector

Completion of Planning scheme Review

Progressing the Vincent street Revitalisation Project

Running a Business expo in october

developing a comprehensive events Calender

Town Planning Policy and Approvals:

2010 – 49

2011 – 49

Median - 58

economic development:

2010 – 55

2011 – 55

Median - 58

we will assist our residents improve the health, safety and vibrancy of our communitiesFor more information see page 25

establishment of a dedicated Flood Recovery office in Creswick

Approximately $5 million of flood recovery works undertaken

Glenlyon Action Plan completed and Lyonville Community Plan reviewed and updated

Review of Library services completed

20,000 people attend ‘Chillout’

near completion of doug Lindsay Recreation Reserve

draft Walking and Cycling strategy developed

Municipal Fire Management Plan updated

Application to resurface Yandoit Tennis Court unsuccessful

Closure of Calambeen dive Tower

Home and Community Care (HACC) targets not met

Finalising agreements and governance arrangements for delivery of the new Library services model

developing a shared vision for the future management and use of the ARC Indoor Recreation Facility

ongoing flood recovery works

Implementing priority projects of Walking and Cycling strategy

Finalising Library service agreements

development of an early Years Plan

Local Roads and Footpaths:

2010 – 45

2011 – 41

Median - 48

Health and Human services:

2010 –75

2011 – 75

Median - 75

we will guide our shire towards environmental sustainabilityFor more information see page 31

development of draft sustainability strategy

Implementing internal sustainability initiatives

Creation of two Community Gardens

establishment of Waste Resource Management steering Committee

development of draft Management Plan for the Central springs Reserve

Trewella Farm receives Council’s inaugural sustainability Award

energy descent Plan not completed

Building emissions increased by 3%

ongoing management of the volume of flood recovery works, and associated lack of available contractors to undertake the work

Finding alternative funding sources in lieu of Climate Communities Program being abolished

Managing the spread of exotic flora species due to extreme weather conditions

developing the energy descent Plan

Finalisation of Waste Management strategy

Undertaking retrofits to Council’s top four energy-emitting buildings

Completion and launch of sustainability strategy

Waste Management:

2010 –61

2011 – 63

Median - 72

The year in review


July, August, Septembern A short-term interest free loan was granted to the

Trentham & District Community Bank Committee to fund a feasibility study for the Trentham Community Bank – Bendigo Bank

n Community Engagement Framework adopted by Counciln Council designates Neighbourhood Safer Places (NSPs)

for Creswick, Daylesford, Clunes, Trentham and Glenlyonn ‘Words in Winter’ events held across the Shire n U3A Hepburn celebrated its 10th anniversaryn September flood events in Creswick and Clunes –

Municipal Emergency Co-ordination Centre established, sandbags delivered, roads closed. Relief Centres opened in Creswick and Clunes

n Forest Resort, Creswick provides accommodation for flood impacted residents

n Council’s Post Impact Assessment Team take to the streets of Creswick and Clunes to assess flood damage

n Council provides assistance to flood affected residents - Skips, clean-up, recovery centres

n Clunes Ceramics Awards presented n Glenlyon residents come together to develop a

Community Plan

October, November, Decembern Council allocates $20,033 to 21 groups - Community

Grants Round One 2010-11n Council appoints Freight Strategy Steering Committee

n Council adopts Heatwave Strategy n John Lenders MP State Treasurer visited Creswick and

announced funding for the Creswick Bowling Club n Council applies for Flood Recovery Grants n Council awards contract for road re-sealsn Over 30 representatives of Creswick community groups

came together at the Creswick Community Summit to discuss the Creswick Community Plan and priorities going forward

n Over 100 people attend 2010 Daylesford Debutante Ball at the Daylesford Town Hall

n Mayor Cr Janine Booth opens Swiss Italian Festan Daylesford Sustainable Building Expo held n Dreamfest Youth Festival FReeZa held n Cr Rod May is elected Mayor, taking over from Cr Janine

Booth n Council joins with Hepburn Health Service to thank 200

community service volunteers with a celebratory lunch at Newlyn

n Annual Daylesford Highland Gathering n Daylesford New Year’s Eve Gala

January, February, Marchn Glenlyon Sports Day n January 13 and 14 flood events in Creswick and Clunes

– Municipal Emergency Co-ordination Centre established, Relief & Recovery Centres opened in Creswick and Clunes

n Council undertakes post impact assessment of houses and buildings effected by floods

n Council, in conjunction with North Central Catchment Management Authority, emergency services and Department of Human Sservices hold post flood Community meetings in Creswick and Clunes

n Council awards tender for 38.6 kilometres of gravel re-sheet works for flood damaged roads in Hepburn Shire

n Presentation of 2011 Australia Day Awards recipients and various Australia Day events held across Hepburn

n Regional Producers Day n Council awards 4 Sustainability Grants – value $13,500n Council appoints Hepburn Shire Waste Resource

Management Strategy Steering Committeen Hepburn Shire Womens Honour Roll Civic Function held

on International Womens Day n The Hon Elizabeth (Jeanette) Powell Minister for Local

Government and Aboriginal Affairs visits Shire to view flood damage and recovery program

n Successful Chillout Festival conducted n Second annual Lyonville Fireman’s Ball n Council supports the development of a shared services

library modeln Council endorses the procurement of a new corporate

information system

Key Events and Initiatives

Flood waters in Clunes


Section one

April, May, Junen Council adopts Rating Strategy n Council applies to the Australian Government (Regional

Development Australia Fund) for funding support to develop the Clunes Community and Interpretive Centre

n The “Burn Out” CD, a booklet to help young people out in emergency situations in a CD compilation package, launched at Daylesford Town Hall

n Investment and Procurement Policy adopted by Counciln Glenlyon Art Show held n Prime Minister, Julia Gillard visits flood affected parts of

the Shire n Council adopts new Recreation Development Policy and

new Terms of Reference for the Recreation Advisory Committee

n Council allocates $15,890 to 14 groups in Round 2 of its Community Grants Program

n Council demonstrates its support for community gardens and sustainable food production by resolving to enter into an arrangement with SHARE for Rae Lands Community Park to become a community garden

n Council awards tender for the operation of Resource Recovery Centres in Creswick, Daylesford and Trentham

n Clunes ‘Back to Booktown’ event n Victorian Premier, Ted Baillieu visits the Shire and hosts a

morning tea in Creswick to say thanks to all who helped during the floods

n Council awards tender for Gravel Road Re-Sheets and Shoulder Repair Program in flood affected areas

n Annual Trentham Spudfest

n 23 young people (nominated by community groups and individuals across the Shire in the fields of Arts, Music, Volunteering, Sportsperson, Leadership, Employee, Drama and Caring for Others) were presented with annual Youth Recognition Awards during National Youth Week

Street parade at Chillout, Daylesford

Enjoying FReeZa Dreamfest Youth Festival


Mayor and CEO message

The last 12 months have seen a mixture of achievement and difficulty for our community and Council.

We have made significant progress in focussing our attention on how we can be a more progressive and responsive Council. In particular, we have invested considerable time and effort into laying the foundations for achieving more inclusive community engagement in the many projects we need to deliver for our residents and ratepayers.

We have also taken the major step of investing significant money in the purchase of a new corporate information system which will give us the necessary technology to operate and manage a modern organisation. Our internal systems had become far too antiquated, and we now look forward to achieving greater efficiencies in the way Council operates once the new system is in place next year.

A further step that will see us achieve cost-efficiencies in our operations was the updating of our procurement procedures and establishment of a ‘preferred supplier’ register. This register recognises Council’s strong commitment to supporting local businesses and provides advanced financial rigour to our procurement and tendering processes.

As we all know, people in the communities and surrounding areas of Creswick and Clunes experienced repeat flood events in September 2010 and then again in mid-January and early February 2011. The physical damage caused to family homes, businesses and community recreation facilities was extreme, and the impact on Council’s assets such as roads, bridges and footpaths has presented major challenges for the Shire.

And as everyone worked tirelessly to help rebuild people’s lives and our local road network and community assets, we still had to get on with the business of working with our community to provide the core services that everyone expects from us.

Responding to AdversityThe true resilience of our community, and the willingness of people to lend a hand, was never more evident than following the floods during the year. The dedication and hard work of volunteers, including our own staff, made such a tremendous difference to the recovery effort - whether it was clearing mud and slush from houses, debris from a fence line or filling and shifting sandbags.

And while there was much to be done in repairing damaged

houses, businesses and infrastructure, there was just as much ‘behind the ‘scenes’ activity from volunteers in caring for children, minding a business for a few hours or clearing a garden. The magnitude of the assistance provided by the various agencies was extreme, and the level of support provided by everyone was truly magnificent.

Over the year, Council spent around $5 million on flood recovery works, and there is still a lot more to do in 2011-2012. In particular, road and bridge repairs are quite significant and many of our recreation reserves still require further enhancement.

The support of the State Government in funding the recovery works has been greatly appreciated by the Shire, and we remain committed to completing all works as soon as possible and providing on-going support to people affected by the floods.

Working with our CommunityCouncil is acutely aware of the criticism it receives from time to time on the need to capture and respond better to the diversity of views in our community. Recognising this fact, Council looked at the way other organisations engaged with their communities, and investigated ‘best practice’ models of engagement. Subsequently, a Community Engagement Framework was endorsed by Council during the year which is based on the acclaimed International Association of Public Participation’s (IAP2) engagement principles.

During the year some significant milestones were achieved in developing an array of plans and strategies. Asset Management Plans for our roads and bridges were adopted, and an Economic Development Strategy was completed.

Community Plans are an important way of building the social fabric of our towns, and we are pleased to report

We are pleased to present to our community the 2010-2011 Annual report of the Hepburn Shire Council.


Section one

the Glenlyon Action Plan was completed and the Lyonville Community Plan was reviewed and updated. In addition, a Reference Group of residents was established in the Sailors Falls, Musk Vale and Leonards Hill area to begin a community planning process. We are particularly pleased that Community Plans are now in place for seven communities across the Shire.

Many of our residents and ratepayers choose to live in our Shire because of its natural environment and the many opportunities that are presented to enjoy a healthy lifestyle. The strength and depth of our community’s desire to pursue healthy activities was no more evident than the extent of community interest and input to the development of a draft Walking and Cycling Strategy.

More than 150 residents and stakeholder organisations provided input to the draft Strategy, and put forward around 440 ideas, suggestions and recommendations. Suffice to say, the draft Strategy is a glowing example of listening to our community, and subsequently, a tremendous reflection of their wants and desires. It is now up to Council to endorse the final Strategy, and then work hard to fund and implement the key initiatives.

We also made good progress in developing a draft Sustainability Strategy, and this too involved an extensive engagement program with members of our community. Again, Council looks forward to endorsing the completed Strategy in early 2011-2012.

Investing in our CommunityCouncil continued to provide strong support to the many community organisations and local events that help showcase our region, its surrounds and the unique character of our people. Record crowds attended our draw-card events including Chillout, Clunes Back to Booktown and the Swiss-Italian Festa.

With the support of funding from external agencies, a number of improvements were made to community facilities such as the Community Halls in Bullarto, Lyonville, Leonards Hill and Glenlyon, and the Trentham Recreation Reserve and our swimming pools. The Creswick Museum also benefitted from restoration works costing nearly $100,000.

The development of the Doug Lindsay Reserve in Creswick is well on track to be completed by the end of the year, with handover of the facility to Council scheduled for August 2011 and all sports expected to resume in the New Year.

One of the most significant decisions taken by Council during the year was to develop and financially support an application to the Regional Australia Development Fund for funding of the redevelopment of the Clunes Museum. In its application, Council sought $2,709,000 for the development of the Clunes Community and Interpretive Centre, at a total project cost of $3,239,000.

Cr Rod May Mayor

Kaylene Conrick chief executive officer

We continued our strong support for local groups by allocating $38,821 to 35 projects in Council’s Community Grants program. In addition, the Daylesford Community Band, Creswick Municipal Band and Trentham and District Historical Society were provided fixed grants of $1,000 each. We were also pleased to provide four Sustainability Grants to local organisations and assist with the establishment of two community gardens.

Looking AheadCouncil commenced a planning scheme review during the year, and its completion in 2011-2012 will provide greater clarity to the many vagaries of our planning system.

The Vincent Street Revitalisation Project will gather pace during the early part of next year, and will be one of the most significant projects of its kind to be undertaken in Daylesford.

Other significant activities for the year ahead include finalising a Waste Management Strategy for Council, finalising and launching the Sustainability Strategy, developing an Early Years Plan, implementing actions of the Economic Development Strategy, reviewing Council’s Special and Advisory Committees, and undertaking retrofits to Council’s top four energy-emitting buildings.

A particular challenge for the year ahead will be finalising the governance and decision-making frameworks for the new management and delivery model of our libraries, and ensuring our libraries have adequate funding to meet community needs.

The extreme events and climatic conditions of the year have placed additional pressure on both Council and external resources. However, through this adversity we have learnt many lessons, and our emergency response plans and processes have since been the subject of exhaustive reviews and refinement.

And of course, there are the day-to-day activities that Council will continue to provide to ensure we are meeting the customer service needs of our residents and ratepayers.

On behalf of Councillors and staff, we would like to thank all the individuals and organisations that have assisted with the many events and activities run by Council, and for taking part in the numerous community consultation and engagement programs run throughout the year.


Financial snapshot

In briefn Surplus of $2.17 millionn Adjusted surplus of $3.5 million (excluding flood-related

items)n $25.6 million revenue with 53% coming from rates and

charges (excluding flood-related revenue)n $22.1 million expenditure with 42% attributable to labour

services and 30% due to materials and services (excluding flood-related expenditure)

n $169.9 million in capital assets, providing community facilities, roads, bridges and other infrastructure

n $7.0 million (excluding flood reimbursements received in advance) in cash, an increase on last year

n $3.5 million loans and borrowings, a decrease on last year

ResultCouncil achieved a surplus of $2.17 million for 2010-2011. However, this was significantly impacted by flood recovery expenditure and associated reimbursements, and the write down of infrastructure assets damaged by the floods. The adjusted result exclusive of the net flood factors was $3.5 million. This adjusted surplus compares favourably to the budgeted result of $1.4 million. Maintaining a positive surplus is an imperative component of Council’s Financial Sustainability Strategy.

surplus ($ thousands)

Financial strengthThe Balance Sheet represents the overall wealth of Council. Net assets increased by $2.3 million to $176.1 million at 30 June 2011. This is a result of the increased cash balance and the increase in infrastructure assets - in particular roads and buildings owned by Council as a result of its capital works program. However, as a result of the flood events, $5.9 million in infrastructure assets were required to be devalued at 30 June 2011. These assets will be repaired over the coming 12 months and the value of Council’s net assets will increase as a result.

net assets ($ Millions)

Cash flowCouncil’s cash balance increased by $4.6 million to $11.8 million at 30 June 2011. This balance was significantly higher than the budgeted amount of $2.9 million due to $4.8 million being received in advance of flood recovery works being completed.

In addition, as a result of the flood events, some capital works and special projects have not been completed resulting in the funds remaining in cash at year end. Further, other State Government grants were received

Although the extreme flood events impacted the financial results for the year, Council’s operating income and expenditure was in line with targets. the following information relates to the ‘Financial Statements’ contained in the Annual Financial report.

cash balance ($ Millions)

180

160

140

120

100

80

60

40

20

02006/07

140.9 149.1164.0

173.9 176.1

2007/08 2008/09 2009/10 2010/11

12

10

8

6

4

2

02006/07 2007/08 2008/09 2009/10 2010/11

2.85 2.98

5.66

7.20

11.82

2006/07 2007/08 2008/09 2009/10 2010/11

4000

3500

3000

2500

1500

1000

500

0

-500

-291 -363

3,822

2,277

3,455


towards the end of the financial year that will not be spent until 2011-2012.

The higher balances for the last three years are a result of the State Government prepaying grant funding, as well as funds remaining in cash - as often significant capital works and projects will span two years. Capital worksThe increase in infrastructure assets is a result of Council’s capital works program. Each year in its Budget, Council allocates on average $6.3 million towards capital works. In 2010-2011, Council allocated 60% of this capital budget to renewal of Council’s roads and bridges.

Council spent $8.7 million in capital works during the year - including $3 million on the Doug Lindsay Recreation Reserve in Creswick. The renewal of assets represented 73% of the total spend – which is a major focus for Council as it works towards decreasing the infrastructure gap.

capital Works ($ Millions)

Future PlanningThe development of the 2011-12 Budget was underpinned by two strategic processes undertaken over the past year - development of a revised Rating Strategy and a Draft 10 Year Financial Plan. These two key documents brought enhanced strategic decision-making to the 2011-12 Budget and will be of great benefit to the longer term interests of our community. These were important commitments under the current Council Plan, and will provide the community with greater clarity around annual budget setting processes.

The revision to the 10 Year Financial Plan enabled Council to focus on core objectives set in the 2007-2017 10 Year Financial Plan - including delivering acceptable levels of service to the community; ensuring that debt levels stay at an acceptable level; reducing Council’s infrastructure funding gap; increasing Council’s working capital ratio and most importantly, achieving financial sustainability into the future.

L to R: Cr Don Henderson, Kaylene Conrick - CEO, Jill Berry - Sustainability Coordinator, Mayor Cr Rod May and recipients of Council’s Sustainability Grants; Laurel Freeland - SHARE, Alistair Grant and Kate Redwood - Daylesford Netball and Football Club, Tanya Black - Refit & Save; Kim Gillott - Creswick Neighbourhood House; John Sayers - Clunes Neighbourhood House

Olivia White, Administration Support Officer at Hepburn Shire Council

Section one

10

5

02006/07 2007/08 2008/09 2009/10 2010/11

6.45.8

6.5

8.7

4.2


Mayor cr rod MayBirch WardFirst elected – november 2008Cr May is an organic farmer and has also worked in the organic sector in standards, regulations and development. He has a background in public land management and

conservation, and privately pursues interests in farm and household renewable energy and self-reliance.

“One of my main highlights for the year has been assuming the role of Mayor – which I have been privileged to undertake. Projects and community initiatives such as the opening of Hepburn Wind, the community garden movement, the establishment of the Jubilee Lake Co-operative and Council’s support of the assignment of the lease of Jubilee Lake Holiday Park to the Co-operative and the Shire’s own movement towards revising the Planning Scheme are also key highlights for me.”

Deputy Mayor cr sebastian Kleincoliban WardFirst elected – november 2008Pursuing his interests in sustainability and agriculture, Cr Klein is nearing the end of his Bachelor of Ecological Agriculture. He is also engaged as a rural contractor and employed in the

Garden of St. Erth in Blackwood, just outside Hepburn Shire.

“My highlights for the year have included the increased level of trust and communication between Hepburn Shire and the Trentham Forum. I also enjoyed the experience of seeing Coliban Ward on foot - as I walked from Trentham to Daylesford along the old railway line.”

cr Bill Mcclenaghanholcombe WardFirst elected – november 2005Cr McClenaghan trained as a secondary teacher at Monash University and worked in State Secondary Schools for 17 years teaching History, Geography and Work

Education. He continued teaching part-time after starting several local businesses. Today, he works in more active outdoor vocations as a self-employed contractor.

“Developing a new Municipal Emergency Management Plan, especially after the Creswick and Clunes floods, has been a particular highlight for me. Other highlights have included the development of Community Plans for Glenlyon, Franklinford, Yandoit and Clydesdale and other small communities like Drummond and Wheatsheaf/Coomoora.

Representing Hepburn Shire on the Municipal Association of Victoria, Timbertowns Victoria and the Highlands Regional Waste Management Group has also been most rewarding.”

cr tim hayes cameron WardFirst elected – March 2006resigned – 23 May 2011 Cr Hayes has lived in Clunes for 12 years and operates a retail business. Prior to moving to Clunes, he was a local government professional

for over 25 years - holding senior positions in the former municipalities of Kilmore and Richmond. He has a Diploma in Local Government Administration and an Arts Degree, majoring in history and politics. He has been involved in a number of community organisations including the Clunes Tourist & Development Association and Creative Clunes. Until May 2011, he was Council’s representative and Chair of the Central Highlands Regional Library Corporation. “My major highlight was the decision to include the proposed Clunes Community and Interpretative Centre as a priority project in the Central Highlands Regional Plan, and the decision by Council to submit this project for funding under the Regional Development Australia Funding program.”

cr Don hendersoncreswick WardFirst elected – november 2008Cr Henderson commenced his career as a carpenter and joiner and is now retired. He worked in all facets of building and construction - domestic, civil, commercial and demolition. He

spent many years in industrial relations and health and safety. He was a director of Tripstop - a new construction product – being actively involved in marketing locally and overseas.

“My standout highlight for the year was the return of a train service in Creswick. The most devastating thing was the three flood events, but as it turned out, it also showed the true resilience, determination and strength of our community. The other highlight was seeing the near completion of the Doug Lindsay Recreation Reserve.”

cr Janine Boothcreswick WardFirst elected – november 2005Cr Booth owns and operates the Creswick Post Office which she purchased following a 30 year management career with Australia Post.

Our Councillors


Section one

Cr Booth has a long history of community involvement and volunteerism in the Creswick area, and is currently a Director of the Creswick Community Bank.

“This year has seen the advancement of many important and long-awaited Creswick Ward Community projects. It is rewarding to see our community working co-operatively with Council to ensure the safety and wellbeing of residents. Our much improved community infrastructure and services are well utilized and increasingly responsive to the community’s needs.”

cr Jon BarrellBirch WardFirst elected – november 2008Cr Barrell has lived and worked in Hepburn Shire for 25 years. He is a General Medical Practitioner and practices in both Daylesford and Trentham.

“During the year I have been pleased to see progress on a range of important local projects and initiatives. These have included the Daylesford Community Park, funding for the Vincent Street Streetscape and the opening of the Wombat Hill Kiosk. Other highlights have included the formation of Daylesford Macedon Ranges Tourism, community participation at the ARC, establishment of a Community Garden and great crowds at ANZAC services and other commemorations and festivals.”


Our OrganisationKaylene conrickchief executive officerMasters in Business Administration (Public Administration)Post Graduate in Management.

Kaylene joined Hepburn Shire in August 2008 as Chief Executive Officer. Kaylene’s extensive local government experience spans 19 years working in rural and regional Victoria across areas of business management, governance, and community development. Previous positions held include Chief Executive Officer, Borough of Queenscliffe, Director Community & Corporate Services, Mansfield Shire Council and Director of Transition, Delatite Shire Council.

Jeff sakergeneral Manager InfrastructureAssociate diploma Applied science (natural Resource Management)

Jeff joined Hepburn Shire in March 2011. Prior to his current role, he was General Manager City Services at the City of Darebin for almost 10 years. Prior to this, Jeff was employed by Parks Victoria where he gained a diverse range of experience in the management of Urban, National and Coastal Parks.

Barry greengeneral Manager sustainable DevelopmentGraduate diploma in Rural and Regional Planningdiploma in natural Resource ManagementMasters in Community Planning (current)

Barry has spent 26 years working in local government. He commenced his career in 1985 with the (then) City of Bendigo. Since that time, Barry has worked predominately in regional Victoria with municipalities, State Government and private enterprise in

the fields of planning, natural resource management, building, environmental health, civil and building construction.

Kathleen Branniganacting general Manager community DevelopmentBachelor of Arts (Honours) Master of social Policy (current)

Kathleen joined Council in March 2009 as Manager Community Strengthening and has been Acting General Manager Community Development since March 2011. Kathleen has a background in community development and social policy, and has worked in the social housing field in both the State Government and not-for-profit sectors.

evan Kinggeneral Manager corporate servicesBachelor of Business (Accounting)Associate CPA

Evan joined Council in his current role in October 2010. Prior to this, Evan held roles as Business Manager, The Salvation Army, Finance Manager with Mars Confectionery Australia and Financial Accountant for Friction Materials Pacific (Bendix Mintex).

eXeCutIVe MAnAGeMent teAM

L to R: Kathleen Brannigan, Jeff Saker, Kaylene Conrick, Evan King and Barry Green

Chief Executive Officer

General ManagerCorporate Services

General ManagerCommunity Services

Executive Services General ManagerInfrastructure

General ManagerSustainable

Development

• Human Resources• Legislative Compliance including:• OH&S Management• Equal Opportunity• Human Rights• Whistleblowers• Freedom of Information• Risk Management• General Insurance/Public Liability• Staff Development• Customer Service & Records• Governance• Information & Technology• Privacy• Leases• Contract Management• Property Services – Civic facilities• Rates/Revenue collection• Financial Management• Statutory Reporting• Organisation Development and

Planning

• Recreation• Public Open Space • Home and Community Care• Transport Connection• Community Services• Youth Services• Regional Libraries• Meals on Wheels• Community Visitors Scheme• Arts & Culture• Community Housing• Community Strengthening• Recovery Management• Family & Children’s Services• Events• Community Grants• Community Planning• Contract Services

• Executive Services• Corporate Communications• Public Relations• Councillor’s Support• Governance

• Major Projects• Local Laws/Compliance• Emergency Management• Fire Prevention• School Crossing supervision

(Public safety)• Immunisation• Environmental Health• Natural Resources• Sustainability• Environment Landcare• Building Services• Waste Management• Strategic & Statutory Planning• Planning Compliance• Economic & Tourism Development• Events• Visitor Information

• Infrastructure Planning• Works Depots• Parks, Reserves and Gardens• Building Works & Maintenance• Road & Bridges• Maintenance & Construction• Engineering Design• Plant and Fleet Management• Waste Management• Surveying • Asset Management• Street Lighting & Cleaning• Traffic & Drainage• Major Projects Construction• Roadside and Urban Street

Vegetation• Mineral Springs Reserves and

structure Maintenance


Good Governance

Section two

Council is committed to the following principles of Good Governance:n A sound working relationship between Councillors and

Shire Managementn Long term financial sustainability for the futuren Effective community engagementn Transparent decision makingn Strong advocacy for Hepburn Shire

HIgHLIgHtS

Review of Special Committees and Advisory Committees A review of Special Committees and Advisory Committees commenced during the year to assess their relevance and contribution to Council. The review considered the ability of Committees to work within the Governance framework required by the Local Government Act 1989. In addition, registers have been developed to record all the relevant information pertinent to Special Committees and Advisory Committees. This will provide a single depository for up to date information relating to these Committees. ProcurementCouncil’s Purchasing Policy was updated to provide process templates, with an emphasis on probity and value for money. In addition, a number of approved and compliant Preferred Suppliers were established where “economies of scale”, local supply (where appropriate) and regulatory compliance will be achieved. Further process improvements and efficiencies have been gained by raising annual purchase orders against supplier contracts rather than the multi-transactions which have occurred in the past.

Purchase of Corporate Information SystemFollowing an extensive tender process, Council awarded the contract for the supply and installation of a new Corporate Information System to Technologyone. The new Corporate Information System will provide Council with the necessary tools to manage a modern organisation and more efficiently meet the service needs of our ratepayers. The new system will provide access to a robust central property database with seamless integration to planning and building databases and mapping software. It will also greatly improve Council’s financial, project, contract and asset management systems, processes and coordination.

Internal & External AuditsA number of internal and external audits were undertaken during 2010-2011 including:

External

n Victorian Auditor General’s Office – Annual Financial Audit and Mid-year Review

n Department of Planning and Community Development Inspectorate - Audit of Compliance with the Local Government Act

n JLT Municipal Asset Protection Plan - Property Risk Auditn JLT Municipal Asset Protection Plan – Commercial Crime

and Fraud Risk Auditn Civic Mutual Plus – Public Liability Risk Progress Reviewn Victorian Auditor General’s Office – Business Planning

for Major Capital Works and Recurrent Services in Local Government

Internaln Project Job Costingn Workplace and Succession Planningn Asset and Property Management

Adoption of Risk Policy & FrameworkA full review of Council’s existing Risk Policy was undertaken and a Strategic Risk Management Framework was subsequently adopted. Robust tools for identifying, assessing and managing risks were development, which will enable Council to further embed risk management in everyday activities.

Adoption of Community Engagement FrameworkCouncil formally adopted the International Association of Public Participation’s (IAP2) framework for community engagement as the model for achieving open, participatory and transparent decision-making and community involvement.

Asset Management PlansThe Road Asset Management Plan and the Bridge Asset Management Plan were endorsed by Council during the year. The development of an Open Space Asset Management Plan also commenced during the year and is expected to be completed during 2011-2012. These Asset Management Plans provide a method of life-cycle costing for maintaining Council’s assets in line with the 10 Year Financial Plan.

Financial SustainabilityHepburn Shire Council was one of 18 Council’s identified in the ‘Local Government Financial Sustainability – Focus on Small Rural Councils’ Report, written by Merv and Rohan Whelan, as not being in a position of relative financial sustainability to adequately service its community.

Based on the Report’s findings, Council officers conducted briefing sessions with Councillors on the implications of the Report and also the Victorian Auditor General’s Office Financial Sustainability Indicators. The purpose of the briefing sessions was to provide Councillors with a

“We will deliver Good Governance to the Hepburn Shire”


contextual understanding of financial sustainability prior to developing the 10 Year Financial Plan 2011-21 and 2011-12 Budget.

Adoption of Policy FrameworkA new Policy Framework was adopted during the year. The objectives were to enable staff to understand what a policy is to Hepburn Shire Council and where policies fit into our document structure. The Policy Framework allows Council to improve how it develops, implements and manages policies, and how they link with Council Plan objectives. The Framework formed the basis of the Council Policy Review Project that commenced during the year (see below).

Council Policy Review ProjectA full review of all Council Policies commenced in 2010-2011.

The Council Policy Review Project will continue into the 2011-2012 financial year.

Rating StrategyCouncil adopted its first formal Rating Strategy in May 2011. Issues such as “capacity to pay” were considered in determining what share of the rate revenue each ratepayer will contribute. The Strategy was adopted following an extensive community engagement process, including two community workshops, discussions with various Community and Advisory Groups and a public submission process.

Best ValueCouncil is committed to periodic reviews of services against best on offer in both the public and private sectors. During the year, Council reviewed the provision of Library Services, Aged and Disability Services, and Youth Advisory and Engagement.

DISAPPOINtMENtS

Policy ReviewAlthough a significant number of Council Policies were reviewed, this was less than planned. Competing priorities

did not allow the focus and resources required to complete the review of all Policies. The Policy Review Project will continue to be a focus in 2011-2012.

Asset Management PlansAlthough significant progress has been made on completing Asset Management Plans for all the Shire’s assets, a significant body of work still remains to complete the outstanding Plans and to determine service levels.

Internal and External Audit RegisterA concerted effort was made to action all recommendations on the Audit register. However, progress on implementing some of the recommendations has been sluggish. An emphasis will be placed on implementing a greater proportion of recommendations in 2011-2012.

CHALLENgES

FloodsGiven the significant volume and cost of the flood recovery works, the challenge over the next 12 months is to ensure the work is completed in parallel with normal budgeted capital works. For this reason, a separate Flood Office has been established to manage the flood recovery works - allowing officers to concentrate on scheduled works.

Legislative ComplianceThe increasing volume and complexity of Council’s legislative obligations presents an ongoing challenge for Council to stay abreast of the changes and ensure that Council is compliant.

Managing the Demand for Asset Maintenance and RenewalThe maintenance and renewal of roads, bridges, footpaths and buildings continues to be an ongoing and significant challenge. Council’s commitment to increase funding for the renewal of ageing infrastructure, combined with the State Government’s injection of additional funding will help to ease the problem. However, there still remains a significant gap between what Council is spending and what is required to maintain the Council’s assets at a level that meets the community’s needs.

Financial SustainabilityCouncil continues to be challenged in terms of its long-term financial sustainability due to population size, sparsity, dispersion and remoteness. The Shire’s population is spread between several urban communities and surrounding districts which increases the cost of providing services.

Review of Internal Processes and PoliciesWhile significant progress has been made in reviewing processes and policies, there is still significant work to be

Policy Date AdoptedHardship Policy 15 March 2011Revenue Policy 15 March 2011Privacy Policy 19 April 2011Procurement Policy 17 May 2011Investment Policy 17 May 2011Recreation development Policy 17 May 2011Complaints Handling Policy 28 June 2011Youth Policy 28 June 2011events Policy 28 June 2011Risk Management Policy 28 June 2011Borrowings Policy 28 June 2011

Good Governance


done in this area. Processes and policies require regular review and modification to ensure they are compliant with legislation.

tHE YEAR AHEAD

Corporate Information SystemThe System will be rolled-out in three phases across the organisation during 2011-2012, with a scheduled ‘go live’ date for the first phase of 14 February 2012. The three phases are:

n Financials, Supply Chain, Contracts, Enterprise Budgeting, Payroll

n Asset Managementn Property and Rating

The expected completion date for total implementation is September 2012.

Procurement trainingAll staff with a financial delegation will undertake an accredited Procurement and Contract Management training course during 2011-2012 - designed in collaboration with the University of Ballarat. The course will be specifically tailored to Council’s Policies and Procedures.

Review of Special Committees and Advisory CommitteesAs a result of the review of Committees in 2010-2011, an education program for Committee members will be undertaken during 2011-2012. Further work is required to review the effectiveness and relevance of all Council Committees to determine if they are operating under the correct structure and, if indeed, they are still required.

FAst FActsservice statistics for the Yearn 28 positions advertisedn 10,421 property assessmentsn 1,589 pension rebates grantedn 7% of rates outstanding at year endn Average rate and charges per assessment was $1,296n Average Capital Expenditure per assessment was

$830n 552 km of sealed roadsn 563 km of gravel roadsn 28 km of footpathsn 126 km of kerb and channeling workn 136 Bridgesn 34 km of drainsn The average number of phone calls received per

month was 1,164n 53,907 receipts issuedn 468 customer requests received.

Section two

OVERALL PERFORMANCEcommunity satisfaction Result for

overall performance

ADVOCACY ENgAgEMENt

community satisfaction Result for council’s advocacy and community representation on key local issues

community satisfaction Result for council’s engagement indecision

making on key local issues

0%2008/09 2009/10 2010/11

58%56% 52%

50%

100%

0%2008/09 2009/10 2010/11

61%57% 57%

50%

100%

0%2008/09 2009/10 2010/11

54% 54% 51%50%

100%

source: 2011 Local Government Community satisfaction survey, Wallis Consulting Group

Wombat Hill Gardens, Daylesford


ACHIEVINg ‘gOOD gOVERNANCE’Of the 25 ‘Good Governance’ initiatives in the 2009-2013 Council Plan, 24 have either been completed or commenced to date.

2010-2011 InitiativesAsset Management Plans for both Roads and Bridges adopted by Council in August 2010 ✔

In a report to Council, 42 blocks of land were identified as being under-utilised. Twelve of the blocks are being further investigated for potential sale. Five poorly utilised vacant blocks of land have either been sold or are in the process of being sold

✔

Purchasing Policy approved by Council in october 2010 providing the organisation with more effective guidelines for all purchases

✔

Approved and compliant Preferred suppliers to Council have been established where “economies of scale”, local supply (where appropriate) and regulatory compliance will be achieved

✔

Council adopted the Risk Framework and Risk Policy in June 2011. Workshops will now be conducted to identify Council risks

Commenced

Working with the community to determine the usefulness and potential benefits of developing a long term Community Vision ✘

Policy Framework developed to guide the revision, creation and implementation of Council policies ✔

Program of systematic Council policy review commenced during the year. Progress has been made with further work required to complete the review

Commenced

Work has commenced with the community to develop the following strategies:Waste Management•Freight•Walking & Cycling•Youth•

Commenced

Greater access to demographic data has been provided to the community through the Council website. Three demographic applications are provided:

Profile Id – community profile•Atlas Id – community atlas•Forecast Id – population forecast•

✔

Additional spending in excess of $250,000 committed to infrastructure assets compared to 2009-2010 ✔

Community engagement Framework adopted by Council in August 2010 ✔

Performance target Performance Result Measure at 30 June 2011

Increase in community satisfaction with Council’s consultative processes

Annual customer contact increased to 70%

66% Target not met

Underlying result $1.3 million deficit $335,000 Target exceeded

Current Ratio – Current assets/current liabilities

106% 263% Target exceeded

operating Cash flow ratio – net operating cash flows/underlying revenue


Borrowing ratio – non-current liabilities/’own sourced revenue


Three Asset Management Plans completed - Parks and Recreation, Footpaths, Kerb and Channel and Furniture and equipment

Three Asset Management Plans completed by 30 June 2011

Both the Buildings Asset Management Plan and Parks and

open space Asset Management Plan are in progress

Target not met

Strategic Indicators for ‘Good Governance’

Good Governance


Section two

Section two

AnnuAl report 2010-2011 Hepburn SHire CounCil 19Views over Lake Daylesford


Phil Naylor, Plant Operator



A more prosperous economy

We are committed to helping our citizens achieve economic prosperity. We understand how important it is for Hepburn Shire residents to access local jobs and to invest in local businesses.

Economic prosperity will be achieved by supporting:n The farming sectorn Tourismn New businesses and jobsn Business infrastructure

HIgHLIgHtS

Regional tourism VisitationsDaylesford and the Macedon Ranges experienced the State’s largest regional increase year-on-year in estimated visitor numbers (+30.7%), and have been able to increase the share of visitor nights and overnights in a flat domestic tourism market. In addition, Daylesford and the Macedon Ranges experienced the State’s largest regional increase in overnight visitations from the previous year (+23.0%).

DOMEStIC VISItOR EStIMAtES (’000) YEAR ENDINg DECEMBER 2010

2009 2010 % change

Macedon 136 150 +10.3%

spa Country 182 240 +31.9%

Region 317 390 +23.0%

2009 2010 % change

Macedon 372 379 +1.9%

spa Country 408 534 +30.9%

Region 780 913 +17.1%

(source: Tourism Research Australia national Visitors survey)

Macedon Ranges recorded the State’s 6th largest growth in Daytrip visitations. Daylesford recorded the State’s 3rd largest decline in Daytrip visitations. This compares with an increase of 1.8% for domestic daytrip visitor numbers to Victoria.

DOMEStIC DAYtRIP VISItOR EStIMAtES 2009 2010 % change

Macedon 771 860 +11.5%

spa Country 620 545 -12.1%

Region 1,391 1,405 +1.0%

(source: Tourism Research Australia national Visitors survey)

Economic IndicatorsBased on a report by the Department of Resources, Energy and Tourism titled ‘The Economic Importance of Tourism in

Australia’s Regions’ (April 2011), Hepburn Shire ranks 7th nationally, in order of the economic importance of tourism.

ECONOMIC IMPORtANCE OF tOuRISMRank tourism Region state Economic total tourism

importance expenditure

of tourism % $m

1 Central nT 24.8 411

2 Phillip Island Vic 18.7 391

3 Whitsundays Qld 17.7 685

4 snowy Mountains nsW 17.1 495

5 West Coast Tas 16.2 102

6 east Coast Tas 14.6 129

7 spa Country Vic 14.3 163

8 Macedon Vic 1.2 86

(source: Tourism Research Australia)

RevenueTourism Research Australia estimates that a total of $96,000,000 was spent in the region by daytrip visitors in 2010.

Economic Development Strategy In December 2010, Council received the Hepburn Economic Development Strategy with an ongoing requirement to “produce an Implementation Plan that will further prioritise the recommendations and identify resource requirements through a series of budget allocations starting with the 2011-2012 budget process”.

In conjunction with the Economic Development Strategy, the Hepburn Business Plan 2011-2013 was drafted to provide a working document for the implementation of priority recommendations of the Economic Development Strategy.

The draft Business Plan identifies key activities that will underpin the economic growth of the Shire in the immediate future. These include:n Progress the development and implementation of the

Streetscape Revitalisation Projects, starting with Vincent Street Daylesford. This work will be supported by a review of parking options in central Daylesford

n Continue to champion funding for the Clunes Interpretive and Community Centre. This project is seen as a significant opportunity to support existing facilities and attractions for Clunes and will enhance the visitor experience to the town. Such a facility for Clunes is expected to be a catalyst for increased tourism and subsequent employment opportunities

n Capitalise on the proposed Walking and Cycling Strategy to identify new opportunities for low-impact tourism activities in the region. The growth in participation in use of tracks and trails for recreation by walkers and cyclists can deliver a boost to the Shire due to its rich and attractive natural environment

Section three

“We will help improve economic prosperity”


n Provide input into the review of the Planning Scheme to ensure the Shire’s future economic development opportunities are supported by appropriate zoning and planning scheme processes

n Continue to encourage investment by mobile telephone service providers to ensure better quality and reliability of services for the community and to better service the needs of visitors travelling into and through the Shire

n Continue to work with our neighbouring Councils to maximise opportunities from the proposed roll-out of the National Broadband Network

Buy Local – It makes centsThe ‘Buy Local – It makes cents’ campaign was launched during the year. The aim of the campaign was to encourage local businesses and residents to buy their products and services locally.

In the case of local businesses, the focus was on educating and encouraging businesses to purchase goods and services for their business from local suppliers wherever possible. For local residents, a marketing campaign was developed to encourage them to buy locally through highlighting those businesses that are part of the ‘Buy Local’ Business Directory and database.

The campaign was developed in collaboration with a range of stakeholders including the Clunes Tourist and Development Association, Creswick and District Development Association, Daylesford District Business Group, Daylesford Macedon Produce, Sustainable Hepburn Association Renewing the Earth, Tourism Hepburn and Trentham Business and Tourism Group.

The ‘Buy Local’ Business Directory membership continues to grow and includes 89 businesses in Daylesford/Hepburn Springs, 59 businesses in Clunes, 68 businesses in Creswick and 33 businesses in Trentham.

telecommunicationsDuring the year, Shire Officers continued to encourage service providers to increase their telecommunication capacity in the region. One of the major service providers is proposing to submit planning applications for new mobile telephone towers in each of our major towns, while some others are considering upgrading existing facilities.

Council has also continued to advocate for the Central Highlands to be a priority roll-out site for the National Broadband Network.

Drawcard Events Once again during 2010-2011, Council supported a number of major events in the Shire. These included ChillOut, Back to Book Town, Swiss Italian Festa, Words in Winter, Daylesford Highland Gathering, Daylesford and Clunes Agricultural Shows, Andersons Mill Food, Wine and Music Festival, Creswick Forestry Fiesta, Glenlyon New Years Sports Day, Glenlyon Fine Food and Wine Fair and the Trentham Spudfest.

Vincent Street Revitalisation

Council has committed to a major project to ‘revitalise’ Vincent Street, Daylesford. Council approved an initial budget of $400,000 which is funded in partnership between the Shire ($100,000) and Regional Development Victoria ($300,000) over a 2 year period. The project is broken up into four stages.

The project aims to identify social spaces for the community, to consider the landscapes and to showcase the town and what it has to offer to the wider community. Community consultation and engagement will be a critical component of the project.

The first stage of the project will run into 2011-2012, and involves scoping the project, gaining preliminary ideas from the community, and developing an ongoing engagement plan.

A Community Reference Group and a local Design Committee (made up of local experts) is to be established to work with Council to ensure Daylesford’s unique character and style is enhanced.

DISAPPOINtMENtS

Businesses in Hepburn Shire experienced similar trends as in other areas, with a decline in discretionary spending.

The agricultural sector was hit hard by the floods and wet weather during the year. This was particularly damaging for some of our potato farmers. Fortunately, some prices for agricultural commodities were at a premium during the year, which helped to offset the impact from the wet weather.

CHALLENgES

The Tourism Industry continues to be a major supporter of economic development across the Shire. During the year, the exchange rate for the Australian dollar has seen increasing numbers of Australians electing to take their holidays at overseas destinations rather than holidaying within Australia.

Day trip visitor numbers have fallen in the Spa Region, but fortunately for the Daylesford and Macedon Ranges region, we have gone against the trend and continued to attract increasing numbers of overnight stays. It is reasonable to presume that this is largely a result of the major campaign being run by Tourism Victoria. The challenge for the tourism industry will be to be strategically prepared for the time when this campaign ends.

Our region has high quality agricultural soils, an excellent growing climate and good access to markets. However, the vagaries of market supply and demand, the fluctuating trading conditions, and international competition have caused the local industry some hardship.

tHE YEAR AHEAD

The coming year will be challenging for business, but the future for the tourism industry continues to look promising.


Council is optimistic the street revitalisation projects to be undertaken in Daylesford, Clunes, Creswick and Trentham will be the catalyst for further economic development in these areas.

When the Planning Scheme Review is completed, it is expected that it will help prepare us for applying for increased industrial and commercial zoned land, which will help the Shire attract more businesses.

Other initiatives include:n Working with Tourism Hepburn, the Regional Tourism

Board and Tourism Victoria to bring another round of Tourism Excellence Training workshops to the Shire

n Developing a series of workshops and training sessions for local businesses - including a follow up to the very popular

‘Business Basics Workshops’ held in Creswick after the flood events during the year

n Working with the Daylesford and Hepburn Springs Business and Tourism Association to run a Business Expo during October 2011

n Developing a hard copy events calendar that showcases Hepburn’s events to share and circulate with neighbouring Shires

FAst FActsn Employment sectors: Retail (16.1%), Accommodation,

Cafes and Restaurants (14.1%), Agriculture (13.6%), Health and Community Services (13.5%)

n Economic contributors: Manufacturing (16.9%), Agriculture and Forestry (12.5%), Accommodation, Cafes and Restaurants (11.3%)

n 1,405,000 day visitors and 913,000 domestic visitor nights to the Daylesford and Macedon Ranges region - an increase of 17% over 2009-2010

n Visits to Daylesford Visitor Information Centre - 92,784n Visits to Creswick Visitor Information Centre - 10,236n Estimated Major Event attendance: ChillOut (20,000),

Back to Book Town (12,000), Swiss Italian Festa (12,000)

Section three

2007/08

2008/09

2009/10

2010/11

Planning Applications Lodged

498

409

465

415

2004/05

2005/06

2006/07

2007/08

2008/09

2009/10

2010/11

Number of Building Approvals (Dwellings)

134

118

103

145

109

121108

Collins Place, Clunes


economic development strategy adopted by Council ✔

stage 1 of the Planning scheme review completed ✔

Launch of ‘Buy Local Campaign – It makes Cents’ ✔

Memoranda of Understanding to support drawcard events like Chillout, Back to Booktown and swiss Italian Festa completed and adopted by Council ✔

Freight strategy steering Committee appointed in november 2010 ✔

Waste Resource Management strategy steering Committee appointed in February 2011 ✔

Victoria Park daylesford upgrade completed March 2011 ✔

Vincent street Revitalisation Project consultation commenced ✔

Main street revitalisation planning for Trentham and Creswick commenced ✔

environmental sustainability Advisory Committee members appointed in August 2010 ✔

Participation in MAV sTeP Planning Program to improve planning processes ✔

Fees reduced for street furniture for local businesses ✔

Feasibility study and funding application for Clunes Community and Learning Centre completed ✔

Lindsay Arts Trail – stages one and Two completed ✔

Magic Pudding Playground , Creswick commenced ✔

earthship demonstration site endorsed by Council in May 2011 ✔

Creswick Railway Workshop lease entered into with VicTrack in november 2010 ✔

Representation on ICT Forum and continued discussions with telecommunications providers to influence decisions ✔

2010-2011 Initiatives

Strategic indicators for ‘A more prosperous economy’Performance target Performance Result

Measure at 30 June 2011

ongoing increasing trend in annual visitor numbers as reported by Tourism Research Australia

Increase in visitation from the 2009-2010 yearFigures for the region increased by 23% in 2010, with 390,000 domestic overnight visitors and 1.4 million day trippers

Target met

drawcard events will continue to achieve high attendances

Attendance levels at Chillout, swiss Italian Festa, Back to Booktown events maintained

Attendance increased by 22%Target exceeded

Council will complete a Main street Revitalisation Plan for Vincent street, daylesford

Plan developed by 30 June 2011Consultants have been engaged and commenced stage 1A of the project

Target met

Council will conduct a review of the Planning scheme for the Hepburn shire. The project is expected to take two years

Review existing documentation prior to the community consultation phase

documentation has been reviewed and all consultation completed

Target met

ACHIEVINg ’A MORE PROSPEROuS ECONOMY’All of the 16 initiatives in the 2009-2013 Council Plan relating to ‘A More Prosperous Economy’, have either been completed or commenced to date.


Section four

Healthy, safe and vibrant communities

Healthy safe and vibrant communities will flourish in the Hepburn Shire Council with the support of:n Completed Community Plansn Satisfaction with Council’s health and community servicesn Revised Municipal Emergency Management Plansn Festivals and events celebrating cultural heritage and

diversityn Satisfaction with Council’s leisure, recreation and library

servicesn Satisfaction with Council’s Local Laws

HIgHLIgHtS

Flood Response and RecoveryThe western areas of the Hepburn Shire, in particular in and around the townships of Creswick and Clunes, suffered devastating repeat flood events in 2010-2011.

Impacted residents were still recovering from the 4 September 2010 floods when they were again faced with heavy rains and severe flooding on 13 and 14 January 2011. Then again, on 4 February 2011, parts of Creswick were flooded, with precautionary evacuations carried out in Clunes in the face of rising creek water.

The floods, which were mainly centred along the Creswick Creek, impacted numerous homes, businesses and recreational facilities. The repeat nature of these events had a major impact on the community’s ability to recover. Repairs made to both private home and businesses following the first flood were in many cases washed away with the January floods. The February floods devastated communities who were still coming to terms with the previous events.

Other parts of the Shire also suffered extensive damage due to sheet flooding across low-lying land and from other waterways, particularly the iconic Hepburn Mineral Springs Reserve.

In April 2011, Hepburn Shire Council established a Flood Recovery Office in Creswick to oversee and coordinate all aspects of the recovery works across the Shire.

Immediate post flood recovery works included:n Clearing of blocked culvertsn General road repairs including shoulders, pavements and

sealsn Drain infrastructure repair and increasing drain capacity in

critical areas

n Stage 1 of the gravel road re-sheet programn Design, scoping, funding and construction of community

infrastructure replacements and repairsn Securing of various flood recovery grantsn Establishment of a Community Recovery Committee

The ‘Gravel Road Re-sheets’ and ‘Shoulder Repair Program’ tenders were advertised in May, with works scheduled to commence in the second half of 2011 - subject to favourable weather conditions. Council has 288 individual projects listed for works under this contract, with works including approximately 16km of gravel road repairs and 32km of sealed road shoulder repairs.

In June 2011, Council advertised a tender for the ‘Restoration of Flood Affected Bridges and Culverts’. This tender was for the clearing of debris from structures, repair of washed out abutments, repair of bridge surfaces and the repair of guard rails. 78 individual projects have been identified for this tender with works scheduled to begin in October 2011.

Community PlansThe Glenlyon Action Plan was completed during the year, with Community Plans now in place for seven communities across the Shire.

The Lyonville Community Plan was reviewed in November 2010, and a Reference Group of residents was established to begin a community planning process in the Sailors Falls, Musk Vale and Leonards Hill area.

New Terms of Reference for the Creswick Ward Community Committee, which advises Council about the Creswick Ward Community Plan, were adopted and a new Committee appointed.

Achievements for the various Community Planning Groups during the year included:n A survey of transport needs in Glenlyon n Lyonville Planning Group awarded Hepburn Shire

‘Community Event of the Year’ for its 2010 Inaugural Fireman’s Ball

n Council allocated $10,000 to beautify the Newlyn roundabout, and is working with residents and VicRoads to further progress this project

n The Jim Crow Creek Community Planning Group received a community grant for the development of a picnic area at Batt’s Bridge, Yandoit

Review of Library Services The Review focused on identifying whether the existing library service levels meet the current and future needs of the community, including an assessment of resourcing and infrastructure requirements.

“We will assist our residents improve the health, safety and vibrancy of our communities”


Healthy, safe and vibrant communitiesKey findings of the review included:n Libraries are highly valued and the community expects

Council to continue to support and enhance servicesn There is a need to increase the size of our libraries,

especially in Daylesfordn Library opening hours need to be reviewed to better meet

the needs of the community n Council needs to invest more in its libraries, especially to

increase the size of the book collection

The Review has provided a clear strategic direction for the future provision of library services in the Shire, and provides a set of guiding principles to assist Council’s decision-making.

Youth Development The Youth Advisory Committee was again active during the year, and made a number of recommendations to provide a new direction for youth engagement in the Shire.

Recommendations included the development of a Hepburn Shire Youth Strategy, support for locally based youth groups, youth consultations within broader community consultations, Quick Response Youth Grants, annual youth forums and employing young people to run youth projects.

The first Hepburn Shire Youth Forum ran in April 2011, with participation from over 80 young people. The focus of the Forum was to develop priorities for the Youth Strategy around youth space, education and employment. The Forum was a partnership between BGT- Youth Connections and the Highlands LLEN. Feedback from the Forum was positive, with participants encouraged by the opportunity to have their voices heard.

Events2010-2011 was another excellent year for events held in Hepburn Shire. The largest draw-card events in the Shire -

Chillout, Clunes Back to Booktown and Swiss-Italian Festa - all continue to grow and flourish.

Even with another wet and windy weekend for Chillout, it still attracted over 20,000 people to Daylesford, Hepburn and the surrounding areas. Clunes Back to Booktown continued its steady growth with 12,000 people attending to take part in reading, writing and buying books. The Swiss Italian Festa also experienced unfavourable weather, but still attracted over 12,000 people to the region.

DreamFest 2010 was the first of an annual FReeZA Youth Festival in the Hepburn Shire. Held at the Hepburn Mineral Springs Mineral Reserve in December, DreamFest was coordinated and run by a team of young, dedicated volunteers. The Festival was attended by 280 people and featured young bands from Daylesford, Bendigo, Ballarat and Melbourne.

Doug Lindsay Recreation ReserveDevelopment of the Doug Lindsay Recreation Reserve continued during 2010-2011, with the new community facility nearing completion. The oval was completed and will be monitored to ensure drainage is working and the grassed surface continues to flourish and stabilise before games are played. Development of the surrounding areas continues with landscaping, and pedestrian access to be completed during the second half of 2011. Handover of the facility is on target to occur on 1 August 2011, with football and cricket expected to commence in the 2012 seasons.

Community Hall Improvement ProgramSignificant progress was made on repairs and upgrades to Community Halls in Bullarto, Lyonville, Leonards Hill and Glenlyon. Air conditioning was installed, and kitchen renovations and roof repairs were undertaken at Leonards Hill. Remodelling and upgrade of toilets at Bullarto Hall also commenced during the year. Construction of a deck at Glenlyon Hall has been delayed while the new kitchen is constructed. Funding of $120,000 for the Community Hall Improvement Program was provided from the Victorian Bushfire Recovery and Reconstruction Authority.

trentham Recreation Reserve Change RoomsNew change rooms were constructed at the Trentham Recreation Reserve during the year. This upgrade provides new showers, toilets and change rooms for visiting teams and umpires, along with a massage room and storage space. Funding for the upgrade was provided from the Federal Government’s Regional and Local Community Infrastructure Program.

Swimming Pool Maintenance and Improvements Council spent $164,745 on outdoor pools in 2010-11, including a new pool filter at Trentham, painting and Displays at the Trentham Spudfest


Section four

replacement of seals at Daylesford and repairs to rails and steps at Clunes.

Seasonal Pool RenewalDuring the year, Sport and Recreation Victoria approved Council’s application for improvements to outdoor pools in Trentham, Daylesford and Clunes. In 2011-12, $204,236 will be spent on enhancing the amenity of our outdoor pools including change rooms, shade and water temperature. Of this amount, $136,157 is State Government funds and $68,079 is being provided by Council.

Community grantsCouncil allocated $38,821 to 35 projects in Round One and Two of its Community Grants program in 2010-2011. Community Grants were allocated for Community Events, Culture and Arts, Community Strengthening and Small Equipment.

In addition, the Daylesford Community Band, Creswick Municipal Band and Trentham and District Historical Society were provided fixed grants of $1,000 each.

Walking and Cycling StrategyFollowing extensive community and stakeholder consultation, a Draft Walking and Cycling Strategy was completed during the year. Key themes of the Strategy are:

n Community Health and Safety – focus on providing infrastructure to provide complete walking and cycling networks, advocating to other agencies for works to improve walking and cycling infrastructure, and the development of programs that engage community in walking and cycling activity

n Economic Prosperity – enhance and develop iconic trails and support to market trail assets and tourism opportunities

n Environmental Sustainability – incorporating principles of active design in planning and development, and the use of recycled or sustainable materials

More than 150 residents and stakeholder organisations provided input to the Strategy, including 442 recorded comments, ideas and recommendations.

Fire ManagementCouncil, in consultation with the Country Fire Authority, updated the Municipal Fire Management Plan, including Township Protection Plans and Neighbourhood Safety Places. These documents are reviewed on an annual basis.

Due to the wet conditions during the year, our ability to carry out grass-cutting and other fire prevention works on both public and private land was significantly limited as machinery was not able to access these areas.

Emergency ManagementCouncil’s updated Municipal Emergency Management Plan was audited and approved by the State Emergency Service during the year, with the next audit scheduled for 2013.

Council received the following grants from the Office of Emergency Services Commissioner (OES):n $12,300 for emergency signage kits for the outdoor crew

when attending to an emergencyn $5,800 for emergency community all-hazard education

sessions, and workshops for the community engagement component of developing the new Community Emergency Risk Management Plan

n A joint application for $17,500 with Hepburn, Mt Alexander and Macedon Ranges Shires to establish a regional Municipal Emergency Management Group to allow a collaborative approach to emergency management in the region. This group was subsequently established

In addition, an application of $70,000 was made to the OES for the Lyonville fire shed project.

Creswick Museum Conservation Project Works to restore and enhance the appearance and condition of the Creswick Museum were completed in September 2010 with funding from Victoria’s Heritage Grants Program. The works will help conserve the building, and enhance its use to ensure the Museum remains a community attraction. The Creswick Museum regularly hosts exhibitions featuring art works of the Lindsay family who hailed from Creswick.

At a cost of nearly $100,000, the works included:n Electrical upgradesn Re-flooring of the entry and Conversation Room n Installation of glazed doors n Installing a new floor in the Lindsay Room n Removing asbestos and hard plastering the north wall of

Council Chamber n Interior painting works

DISAPPOINtMENtS

Yandoit tennis CourtsCouncil’s application to the Department of Planning and Community Development (Sport and Recreation) for funding to resurface the Yandoit Tennis Court was unsuccessful.

Council roadworks


Calembeen Dive towerThe Calembeen Dive Tower had to be closed due to vandalism, and ongoing e-coli contamination caused by the floods.

Home and Community Care (HACC) targets Although the community continued to express a high level of satisfaction with services, targets for hours of service delivery were not met. This was a result of decreased referrals to HACC Services, and streamlined referral pathways to Contract Care. Plans have been developed to increase service hours in 2011-2012.

CHALLENgES

Library Services Council’s decision to support the development of a shared service model, where Council will purchase library services from the City of Ballarat and directly employ library staff, presents some challenges and positive opportunities.

The direct employment of library staff provides great

opportunities for more integrated services. Council will enter into an agreement with the City of Ballarat for the provision of library services in 2011-2012, and further decisions about governance and decision making will be required. These decisions will shape the future model of delivering library services in Hepburn Shire.

ARC Indoor Recreation Centre, Daylesford Due to ongoing concerns about the viability and level of participation at the ARC Indoor Recreation Centre, Council has commissioned an independent review of future management options for the Centre. Work will continue in 2011-2012 to achieve a shared vision for the future management and use of the Centre.

tHE YEAR AHEAD

Flood Recovery WorksPlanned works for 2011-2012 include:n Stage 2 of the gravel road re-sheet programn Delivery of community infrastructure projects including: n Victoria Park oval, basketball stadium, cricket nets and

netball courts – Clunes n Queens Park playground redevelopment – Clunes n Glenlyon Recreation Reserve flood remedial works –

Glenlyon n Calembeen Park diving tour, concourse, retaining walls

and other works – Creswick n Creswick Bowling Club relocationn Sealed road repairs programn Bridge repair programn Further drainage repair and upgrade worksn Walking track and footpath repairsn Delivery of further community and economic development

projects

Key ProjectsKey projects for the year ahead include:n Implementation of priority projects from the Walking and

Cycling Strategy n Developing a plan of action in response to the Review of

Library Servicesn Obtaining a better understanding of the needs of children

and families in the Shire with the development of an Early Years Plan

n Implementation of new directions in the Home and Community Care Program - including better planning for diversity and improved assessment and care planning. Consistent with the principles of positive ageing, this will see a focus on early intervention and prevention for older people, helping them to stay involved in everyday activities to maintain or rebuild their confidence and stay active and healthy

Healthy, safe and vibrant communities

FASt FACtS

n 1,831 pool memberships sold n 6,912 pool visitsn 4,536 passengers travelled on the

Old Hepburn-Creswick trial bus

Libraries n Clunes Branch – 634 members, 19,333 loans,

15,615 visits n Creswick branch – 1,339 members, 28,952 loans,

20,890 visits n Daylesford – 3,002 members, 80,961 loans,

51,948 visits

Maternal and Child Health n 170 birth notificationsn 86% (146) of infants 0-1 month enrolled in Maternal

and Child Health Service from birth noticesn 1225 Maternal and Child Health consultations (Key

Ages and Stages visits)

aged and Disability services n Hours of Home and Community Care: n Personal Care - 2,655n Housekeeping - 9,950 n Respite - 1,315 n 419 hours of home maintenance provided n Meals on Wheels - 19,460 meals delivered


Section four

ACHIEVINg ‘HEALtHY, SAFE AND VIBRANt COMMuNItIES’All of the 17 initiatives in the 2009-2013 Council Plan under ‘Healthy, Safe and Vibrant Communities’ have either been completed or commenced.


Strategic Indicators for ‘Healthy, Safe and Vibrant Communities’

Lyonville Community Plan reviewed and updated - november 2010 ✔

Glenlyon Action Plan completed ✔

Work commenced on developing a Community Plan for Musk Vale/sailors Falls - to be completed september 2011 ✔

Community Planning schedule adopted by Council, december 2010 ✔

Priority projects from Community Plans completed:newlyn roundabout works•Yandoit Tennis Court •Lindsay Arts Trail •

✔

Improvements to Lyonville Community Hall – Community Hall Improvement Program ✔

Funding application submitted for Clunes Community and Interpretative Centre ✔

Council provided HACC services to 491 clients. Hours of service:

Personal Care 2,655•Housekeeping 9,950 •Respite 1,315 •

419 hours of home maintenance provided 19,460 delivered meals – Meals on Wheels Program

✔

new Youth Policy adopted by Council, June 2011 ✔

Access and Inclusion Plan - not reviewed ✘

Planning scheme review report completed ✘

Revised Municipal emergency Management Plan adopted september 2010 ✔

Public Health emergency Management sub Plan adopted June 2011 ✔

ongoing, regular meetings with members of Victoria Police and specific strategies developed in relation to trespassing at Calembeen Lake tower CommencedReviewing the shire’s Local Laws to improve community safety and amenity CommencedAchieving safer roads, safer cycling infrastructure, improved pedestrian precincts and healthier communities by participating in black and grey spot funding programs to complete at least two major road projects, and through seeking the implementation of more local traffic management plans in conjunction with other authorities and our community

✘

(Funding not made available in 2010-2011)

Completing a significant tree register and enabling appropriate protection through the Hepburn Planning scheme CommencedFacilitating the restoration of important heritage buildings. no funding provided for grants or loans. Advocacy and advice only ✔

Introducing a Public Art Policy and incorporating a public acquisition and display policy with a particular focus on encouraging art installations in public open spaces

✘

Council allocated $38,821 to 35 projects in Round one and Two of its Community Grants program for Community events, Culture and Arts, Community strengthening and small equipment

✔

Assistance provided to festivals and events including Chill out, daylesford Highland Gathering, Clunes Book Town, Trentham Fun Run, Glenylon sports day, daylesford Agricultural show, Creswick Forestry Fiesta, swiss Italian Festa, Jubilee Lake Family Fishing day, Trentham spudfest, new Year’s eve Gala

✔

Terms of Reference for Recreation Advisory Committee adopted and new members appointed in June 2011 ✔

Performance Measure target Performance at 30 June 2011 Result

Council will assist with the development of community plans

Two new Community Plans developed by 30 June 2011

Glenlyon Plan developed. Lyonville Plan revised and new Plan written. Work commenced on sailors Falls Plan

Target exceeded

Completion of a significant Tree Register through the Hepburn Planning scheme

Complete collation of public submissions to identify trees to be assessed by 30 June 2011

The collation of public submissions to identify trees has been completed. A consultant has been appointed who is currently writing statements of significance for the trees that should be protected for the significant Tree Register

Target met

Council will provide Home and Community Care services to all eligible residents

during 2010-2011 Council will provide a minimum of:13,650 hours of housekeeping3,400 hours of personal care2,750 hours of respite care

Council provided:9,950 hours of housekeeping2,655 hours of personal care1,315 hours of respite care

Target not met

satisfaction with Council’s health and human services remain high

Community satisfaction rating of 74% for overall performance in the Health and Human services area

75% Target exceeded


Turbine at Hepburn Wind



Section five

Environmental sustainability

To achieve environmental sustainability, we will:n Demonstrate courageous leadership in responding to the

challenges of climate change n Work collaboratively with the community to address their

needsn Ensure we plan for short and long term economic viability,

environmental conservation, restoration and community well-being in all Council decision making, operations and services

HIgHLIgHtS

Sustainability Strategy The development of an overarching Sustainability Strategy was a key priority in 2010-2011, with the Strategy nearing its completion. The aim of the Strategy is to improve the environmental efficiency of Council operations and services over a three year period.

The draft Strategy has five themes:n Creating a culture of Sustainability Leadership within Council n Responding to the Challenges of Climate Change n Using Our Resources Wisely n Enhancing and Restoring our Natural Assetsn Working with Community, Agencies and Business on

Sustainability Issues

Implementation of the Strategy will be undertaken over three stages:Stage 1: Building Internal Capacity Stage 2: Addressing Identified Priorities across the Spectrum Stage 3: Planning for the Long Term and Partnering in Major

Projects

It is anticipated the final Strategy will be launched in November 2011. Internal Sustainability InitiativesCouncil adopted a number of practical measures during the year to improve sustainability. These included:n Converting all halogen lights in the Visitor Information Centre

to LEDsn Utility monitoring of all Council-owned buildingsn Green purchasing – Council continues to promote buying

recycled and environmentally preferred or green products. Council’s overall green purchasing during 2010-2011 was 30%. The goal is to increase Council’s green purchasing to 35% in 2011-2012.

Community gardens Council assisted in the development of two community gardens in Daylesford. These were at Rea Lands, 42 Raglan Street and

33 Albert Street, adjacent to Daylesford Library.

Vehicle Policy – green Fleet To help achieve Council’s goal of reducing greenhouse emissions, a ‘green fleet’ policy was adopted which resulted in a reduction in fuel consumption of 19%.

RecyclingCouncil was successful in receiving a $50,000 grant from Sustainability Victoria for the provision of public place recycling receptacles in the main streets of Creswick, Clunes and Hepburn Springs. The dual bin installation in Creswick was completed in 2010-2011. The roll-out in Clunes and Hepburn Springs will be completed in early 2011-2012. The location of these bins was determined following consultation with the community and traders, and is expected to increase the Shire’s recycling rates while reducing the amount of litter sent to landfill.

Waste Management StrategyCouncil established a Waste Resource Management Steering Committee to provide input and advice on the development of a Waste Management Strategy. The Committee comprises two Councillors, three community representatives and Council officers. The Strategy will be developed during the first half of 2011-2012.

Sustainability grants

Four Sustainability grants were distributed in 2010-2011.n Daylesford Football and Netball Club: ‘Four Quarter to tackle

Climate Change’. This project involved the installation of nine recycling receptacles at Victoria Park, replacement of all takeaway food containers from the kiosk to compostable crockery, and the purchase of a crockery set for the Club in lieu of disposables for events

n SHARE: ‘Transition Town Training’. This involved the training of 30 local residents to become community leaders in sustainable living

n Creswick Neighbourhood House: ‘Frog’s Rock!’ This was a biodiversity restoration project for the Growling Grass Frog

n Clunes Neighbourhood House: ‘Geodesic Dome’. This involved the development of a geodesic dome as a demonstration site for high volumes of residential food production

Mineral WaterIn conjunction with the Victorian Mineral Water Committee (VMWC), Council completed a draft Management Plan for the Central Springs Reserve. Council also continued to work with the Committee to progress a number of VMWC funded projects to protect and enhance these iconic areas.

Earth Ship Demonstration Project This project involves the development of a demonstration wall made out of recycled materials to demonstrate alternative

“We will guide our Shire towards environmental sustainability”


housing design and use of materials. The project was facilitated by Council at the Daylesford Transfer Station and developed by community members.

The project will be completed during National Recycling Week (7-13 November 2011).

Koala Connect Project This project involved four municipalities (Pyrenees, Ballarat, Hepburn and Moorabool) and was funded by the State Government. The aim of the project was to assist planners and engineers understand the values of native vegetation and Council’s responsibilities and obligations under the Environmental Protection Biodiversity Conservation Act and the Flora and Fauna Guarantee Act. During 2010-2011, four publications were produced and distributed. n ‘Before you buy or build’ - a guide to native vegetation and

planningn ‘Threatened species of Central Victoria and their habitats’ – a

guide for kidsn ‘Native Vegetation and Planning in Central Victoria: an

introduction for Council staff’n ‘Meet the locals’ – a guide for native animals

Landcare A total of $24,000 (equally funded by Council and the State Government) was provided to 13 local Landcare groups – with each receiving $1,845. Projects included:n Water catchment conservationn Cleanup at the Clunes Creekn Leitches Creek weedingn Gorse, blackberry and broom infestation management n Tree planting program-collecting seeds for tree seedlings and

distribution

School SupportCouncil provided funding of $3,000 to Smeaton Primary School to participate in the Resource Smart AuSSI Vic (Australian

Sustainable Schools Initiative Victoria) sustainability program - a five module program that will work on energy, water, waste and biodiversity initiatives. AuSSI is a national partnership of the Australian Government, and provides practical support to schools and their communities to learn to live and work more sustainably.

The program will help Smeaton minimise waste, save energy and water, promote biodiversity and cut their greenhouse gas emissions. Council also provided $450 to teachers from Bullarto, Creswick North and Smeaton primary schools to attend a Regional Tool Box Forum for Environmental Change within the educational system.

Sustainability AwardThe inaugural winner of Council’s Sustainability Award was Trewhella Farm for their excellence in environmental sustainable practices. The award honours a food producer or winemaker within the Daylesford Macedon Produce area who exhibits a commitment to sustainability, and consciously demonstrates environmental and sustainability applications in their business operations.

DISAPPOINtMENtS

Energy Descent PlanCouncil is still developing the Energy Descent Plan, with the target completion date being extended to 30 June 2012. The planning phase has taken longer than anticipated.

Carbon OutputCouncil has not reduced carbon output from Council’s operations by 5%, with building emissions during 2011-2012 increasing by approximately 3%.

CHALLENgES

Flood Recovery WorksThe sheer volume of flood recovery works will continue to present challenges to Council. In particular, the amount of work required

Environmental sustainability

AnnuAl REsiDEntiAl wAstE GEnERAtiOn PER cAPitA (KG)

REcYclinG As A PROPORtiOn OF AnnuAl REsiDEntiAl wAstE

lAnDFill As A PROPORtiOn OF AnnuAl REsiDEntiAl wAstE

0%2007/08 2007/08 2007/082008/09 2008/09 2008/092009/10 2009/10 2009/102010/11 2010/11 2010/11

363 37%

58%326

38%

59%

490

39.5%

55.5%

459

37.8%62.2%

250

500

0%

25%

50%

0%

50%

100%


Section five

to quantify and produce tender documents is extensive, and there is a shortage of available contractors due to the extent of flood recovery works across other parts of Victoria and Australia.

Climate Communities ProgramThe Climate Communities Program was abolished during the year, and this has resulted in the removal of climate change funding sources for community groups and human resources for local councils. Alternative means of funding these programs will need to be explored.

Climate ChangeThe extreme weather events caused exponential growth of flora - including exotic species. This will continue to pose problems as contractors have been unable to perform weed management works. Additionally, vegetation growth will flourish in Spring which will exacerbate fire risks for Summer.

tHE YEAR AHEADA range of key projects and initiatives will commence or continue in 2011-2012. These include:n Development of the Energy Descent Action Plan n Finalisation of the Waste Management Strategy n Eco leaders (internal) - developing a group of internal staff

dedicated to integrating sustainability across the wider organisation

n Sustainability workshops - offering workshops to the community to assist in reducing their environmental impact and increase sustainable behaviours

n Implementing retrofits to Council’ top four energy-emitting buildings

n Launch of the Sustainability Strategy n Continuation of Community Sustainability and Landcare

Grants.

Becoming a carbon negative organisation by June 2013 and a carbon negative community by 2025 ongoing

seeking partnership opportunities in Federal and state funded sustainability programs to continue reducing our carbon emissions ✔

Reviewing our fleet and motor vehicle operations to reduce fuel consumption and greenhouse emissions ✔

Achieving a significant and noticeable reduction in vehicular traffic and motor transport through promotion and development of cycling and walking infrastructure in our five main communities ongoing

Installing energy efficient fittings and appliances in Council buildings ✔

Providing grants to community organisations pursuing environmental sustainability ✔

enacting policies which encourage environmentally sustainable development, particularly measures relating to energy initiatives and transport ✔

Investigate strategies to provide incentives for environmentally sustainable property improvements ✔

Implementing Council’s sustainable Water Use Plan including drought proofing of iconic open spaces like the Wombat Hill Botanic Gardens and Queens Park in Clunes

x

establish an effective dialogue with Government departments and local water authorities to protect our water resources from over allocation xensuring our community can capitalise on and enjoy the benefits of our iconic mineral water resources for generations to come by proactively advocating for the responsible management of the resource and seeking representation on the Victorian Mineral Water Committee

x

Protecting water quality in the shire by advocating for the use of dry treatment or otherwise proven waste water technology x

Including new planning provisions in the Hepburn Planning scheme to improve biodiversity and habitat preservation ongoing

Pursuing appropriate revegetation and integrated weed management on roadside reserves in partnership with abutting land owners, our community and other managers

✔

developing Management Plans for Council owned and/or controlled natural environments, such as Jubilee Lake, Lake daylesford, Calembeen Park, Bath street Reserve and the Hepburn Mineral springs Reserve

✔

Reducing the waste taken to landfill by encouraging waste minimization practices and investigating options for the extension of the kerbside collection service and community recycling drop-offs

ongoing

Working with local organizations and service clubs to improve the delivery of surplus yet appropriate and useful goods to those less fortunate ongoing


Performance target Performance at 30 Result

Measure June 2011

Increase the level of recyclable collection processed at the daylesford Municipal Recycling Facility (MRF)

Process in excess of 1,100 tonnes of recyclable collection

1, 857 tonnes recycled in 2010-11 Target exceeded

Reduce the carbon output from Council’s operations, verified through utility tracking

Carbon output reduced by 5% Carbon output increased approximately 3% Target not met

Council will implement priorities indentified in the energy descent Plan

Completion by 30 June 2011Council is still developing the Plan, with the target completion date being extended to 30 June 2012

Target not met

Strategic Indicators for ‘Environmental Sustainability’

ACHIEVINg ‘ENVIRONMENtAL SuStAINABILItY’Of the 17 ‘Environmental Sustainability’ initiatives in the 2009-2013 Council Plan, 13 have either been completed or commenced to date.


Our peopleAs at 30 June 2011, there was 164 staff employed in a range of permanent full-time, part-time and casual positions - equating to 122.4 equivalent full-time staff (EFT). Of the 122.4 EFTs, 15 were vacant positions leaving an employed EFT number of 107.4 at 30 June 2011.

Council also employed another 3 employees (2.06 EFTs) in funded positions relating to Transport Connections, Bushfire Recovery and FReeZa events.

Of the 122.4 EFT staff, 89 are involved in external service delivery. This includes functions such as road maintenance, parks and gardens, aged and disability services, transport connections, youth development work, bushfire and flood recovery, community planning, recreation activities, planning, building and health inspections, management of Visitor Information Centers, compliance (including local laws), school crossing supervisors, waste management and road engineers.

The pie chart below shows a break-down of staff by service delivery area.

Executive Services 3%

Community Development 7%

HACC 19%

Sustainability 2%

Economic Development &Tourism 3%

Corporate Services 18%

Engineering 6%

Maintenance 19%

Parks & Gardens 9%

Planning, building & health 14%

Department total EFt

executive services 3.6 (3%)Community development 6.74 (7%)HACC 23.6 (19%)sustainability 2 (2%)economic development & Tourism 3.5 (3%)Corporate services 23 (18%)engineering 7 (6%)Maintenance 24 (19%)

Parks & Gardens 11 (9%)Planning, Building & Health 18 (14%)tOtAl 122.4

and between departments, overall the EFT number has remained constant over the last few years. Interestingly, there has been a 3% increase in the number of part-time staff - with 41% of the workforce now in part-time employment, up from 38% in 2009-2010.

training and DevelopmentEmployees participated in a range of training and development opportunities across a number of core business areas. Some of the training and development included: n Contracts & Procurementn Community Engagementn Anti-Bullying & Harassmentn Certificates and Traineeships in Business Administration n Building & Civil Construction

A number of staff also participated in leadership and management training such as LGPro Emerging Leaders and the LGPro Ignite Programs.

Enterprise Agreement Council’s Enterprise Agreement (No.6) 2010 came into effect on 18 November 2010. The Agreement remains in place for three years and aims to provide fair and favourable working conditions for our employees. The Enterprise Agreement Negotiating Committee consisted of employee and management representatives from Hepburn Shire Council, the Australian Services Union (ASU) and the Association of Professional Engineers Scientists Managers Australia (APESMA).

Employee Code of Conduct The Employee Code of Conduct was adopted in June 2010. To promote understanding of the Code, the CEO hosted a series of workshops for employees in early 2010-2011 to discuss topics such as conflicts of interest, ethical decision making and appropriate workplace behaviours.

stAFF BY EMPlOYMEnt stAtus

Full time 85

Part time 68

casual 11

stAFF BY GEnDER

Female 57%

Male 43%

This year, some of our staff also took the opportunity to move into temporary secondment positions in the Creswick Flood Recovery Office to assist with the Flood Recovery efforts.

Although there have been some shifts in EFT numbers within


Section six

Values and Behaviours Following extensive consultation with all employees, Council formally adopted a set of organisational Values and Behaviours in November 2010. In addition to defining the Values of Accountability, Respect, Excellence, Trust and Fun, employees also identified specific behaviours to describe how each Value is represented in our day to day interactions.

Occupational Health and Safety (OH&S)Council is committed to providing a safe and healthy workplace for all employees, Councillors, contractors,

customers, volunteers and visitors. Through proactive inspections, Committee meetings and engagement with Health and Safety Representatives, Council aims to continually improve its processes and controls to reduce the risk of injury or health issues.

For the year ended 30 June 2011, a total of 39 incidents

were reported. Of these incidents, 13 were near misses, six required external medical treatment and four resulted in employees being off work for at least a shift (Lost Time Injuries).

Service MilestonesService milestones are recognised on an annual basis at a staff function. Certificates recognising service milestones are presented with a small gift of appreciation. Hepburn Shire Council values the service provided by its long-serving employees and the wealth of knowledge they bring to Council.30 Years:n Kevin Clohesy, Fleet and Technical Officer20 Years:n Lina Martin, Home Carer15 Years:n Eric Wright, Coordinator Compliancen John Scanlon, Labourer/Plant Operatorn Lesley Cebula, Records Officern Jennifer Cowan, Rates Officer10 Years:n John Liversidge, Hall Keepern Gordon Anderson, Mechanical Assistant/Labourern Gerard Van Oostveen, Labourer/Plant Operatorn Dale Callahan, School Crossing Supervisorn Rebecca Pedretti, Film Liaison Officern Dianne Struhs, Property Officern Dianne Van Der Veer, Administration Support Officern Rachael Cooper, PAG Assistantn Kathryn Attwood, Financial Accountant

Volunteer Service AwardsCouncil recognised six community members for achieving 10 years’ volunteer service at our Visitor Information Centres.

Daylesford regional visitor Information centre:n Claire Stephensn Brian Hoffmeyern Carol Hoffmeyer

Creswick Visitor Information Centre:n Barry Yatesn Val Yatesn Mary Anglin

David Gyford, Roads Inspector and Andy Coker, Team Leader Outdoor Maintenance

Gerald Daly, Workshop Team Leader

REPORtED inciDEnts AnD inJuRiEs

2007/08 2008/09 2009/10 2010/11

42

3734

39

0

25

50


Michael Taleski, Plant Operator



Section seven

Corporate GovernanceCouncil governs for and on behalf of the Hepburn Shire community. Good governance is accountable, transparent, responsive, effective and efficient, equitable and inclusive and law abiding. Council gains its role, powers and functions primarily from the Local Government Act 1989 which sets out a charter prescribing the purpose of Councils in Victoria.

Our RoleUnder the Act, the main objective of Council is to endeavour to achieve the best outcomes for the local community having regard to the long term and cumulative effects of decisions.

Under the Act, the role of Council includes:n Acting as a representative government by taking into

account the diverse needs of the local community in decision making

n Providing leadership by establishing strategic objectives and monitoring their achievement

n Maintaining the viability of Council by ensuring that resources are managed in a responsible and accountable manner

n Advocating the interests of the local community to other communities and governments

n Acting as a responsible partner in government by taking into account the needs of other communities

n Fostering community cohesion and encouraging active participation in civic life

Local government is accountable to its community, so its operations must be open and transparent. Proper process with good governance is an essential part of the way Hepburn Shire Council operates, as it gives residents the confidence to know that their rates are spent wisely and Council administration carries out decisions made by Councillors appropriately.

Council Plan FrameworkThe Council Plan is the key strategic document guiding the direction of the Council for its elected term. The Hepburn Shire Council Plan 2009-2013 was developed in consultation with residents and stakeholders. This Annual Report reviews performance against the 2009-2013 Council Plan.

The Council Plan makes four fundamental commitments:n We will deliver good governance to the Hepburn Shiren We will help improve economic prosperityn We will assist our residents improve the health, safety and

vibrancy of our communitiesn We will guide our Shire towards environmental

sustainability

The Plan also contains:n A range of initiatives and strategies through which we will

deliver our commitmentsn Ways to measure our success or otherwisen A Strategic Resource Plan which identifies the

financial and other resources necessary for the Plan’s implementation

Decision MakingCouncil has an Ordinary Council Meeting once a month which is held at different locations throughout the Shire to ensure the community has the ability to attend if they wish. Councillors are also briefed by officers on relevant issues during informal weekly sessions.

Attendance at Council Meetings1 July 2010 – 30 June 2011

Committees of CouncilCouncil could not operate effectively without the assistance of the large number of volunteers represented on Council’s Special Committees (Section 86 Committees) and Advisory Committees.

ORDinARY MEEtinGs(12 held)

sPEciAl MEEtinGs(4 held)

Cr Barrell 10 4Cr Booth 12 4Cr Hayes (Resigned 23 May 2011) 10 4Cr Henderson 12 4Cr Klein 12 4Cr May 12 4Cr McClenaghan 12 4


Councillor Committee Representation

Audit and Risk Advisory Committee

The Audit and Risk Advisory Committee is an independent advisory committee to Council. It is comprised of three external independent members including Mr Robert Taylor (Chair), Mr Les Eastcott and Mr Peter Barton and two Councillors – Cr Janine Booth and a vacant position.

The Committee meets four times during the year in September, November, February and May. At these meetings, the Committee considered the following agenda items:n Review of Risksn Summary of monthly finance reportsn Mid-year budget reviewn Annual Budget reviewn Internal audit reports issuedn External audit reports and management lettersn Review of compliance obligationsn Progress on internal and external audit recommendationsn Policy and procedure review

Internal Audit Reviews Conducted in 2010-2011

n Project Job Costingn Workplace and Succession Planningn Asset and Property Management

External Audit Reviews Conducted in 2010-2011n Victorian Auditor General’s Office – Annual Financial Audit

and Mid-year Reviewn Department of Planning and Community Development

Inspectorate - Audit of Compliance with the Local Government Act

n JLT Municipal Asset Protection Plan - Property Risk Auditn JLT Municipal Asset Protection Plan – Commercial Crime

and Fraud Risk Auditn Civic Mutual Plus – Public Liability Risk Progress Reviewn Victorian Auditor General’s Office – Business Planning

for Major Capital Works and Recurrent Services in Local Government

Local LawsThe Local Government Act gives Council the power to make local laws.Hepburn Shire Council has two local laws:n Local Law No 1 – Meeting Procedure and Common Sealn General Local Law No 2 – Community Amenity and

Municipal Places

General Local Law No 2 covers issues such as:n Public Street and Road Usagen Alcohol consumptionn Burning of offensive materialn Keeping animals

A permit may be required to carry out various activities under General Local Law No 2, such as holding a street stall. Copies of these documents are available on Council’s website

Corporate GovernanceOrganisation councillor

RepresentationExternal BodiesCommittee of Management for dse (26 Committees) All Councillors represent

their electorate at these meetings when required

Municipal Association of Victoria Cr Bill McClenaghanVictorian Local Government Association Cr sebastian KleinHighlands Regional Waste Management Group Cr Bill McClenaghan

(director)Central Highlands Regional Library Corporation Cr Rod MayCentral Highlands Agribusiness Forum Cr Rod MayCentral Victorian Greenhouse Alliance Cr Rod MayLocal Government sustainability network (MAV) Cr Rod MayTimber Town Cr McClenaghandaylesford Macedon Ranges Tourism Board Cr Jon BarrellLoddon Highlands WsPA Consultative Committee Cr Rod MaySection 86 CommitteesLee Medlyn Home of Bottles VacantCouncil Advisory CommitteesAgricultural Advisory Cr sebastian KleinAudit and Risk Advisory Cr Janine Booth and

VacantARC Advisory Committee Cr Jon BarrellBobonaro Friendship Group Advisory Cr sebastian KleinCreswick development Committee Cr Janine Booth and Cr

don HendersonCulture and Arts Advisory Cr Rod Mayenvironmental and sustainability Cr sebastian Klein, Cr

don Henderson and Cr Rod May

Heritage Advisory Cr don HendersonIWd organising Committee Cr don HendersonMineral springs Reserve Advisory Cr Rod MayMunicipal emergency Management Planning Cr Bill McClenaghanMunicipal Fire Prevention Cr Bill McClenaghanRecreation Advisory Cr sebastian KleinWombat Hill Botanic Gardens Cr Jon Barrell

local law Date OperationalLocal Law no – 1 Meeting Procedure and Common seal 22 April 2009

General Local Law no – 2 Community Amenity and Municipal Places

17 november 2009


Section seven

Policies, Strategies and Plans

The following policies, strategies and key plans were reviewed and/or adopted by Council during 2010-2011.

Information Privacy Act 2000Council has adopted policies relating to information privacy and health records that meet the requirements of the Information Privacy Act 2000 and the Health Records Act 2001.

Whistleblowers Protection Act 2001 The Act is designed to encourage and facilitate the disclosure of information about improper conduct by Council officers or Councillors. The Act provides a framework for the investigation and correction of any improper conduct reported. It also provides protection for informants. The key objectives of the Act are to:n Promote a culture in which people feel safe to make disclosuresn Protect these people from recriminationn Provide a clear process for investigating allegationsn Ensure that investigative matters are dealt with properly

Council’s commitment to the Act is outlined in our Whistleblowers Procedures which can be found on Council’s website. One disclosure was received in 2010-2011.

Freedom of InformationThe Freedom of Information Act 1982 provides all residents and ratepayers a legally enforceable right to obtain access to a document in accordance with this Act. Freedom of Information requests must be made in writing and be accompanied by an application fee.

There were two applications under the Freedom of Information Act 1982 during 2010-2011.

Document Date AdoptedCommunity engagement Framework 17 August 2010Road Asset Management Plan 17 August 2010Bridges Asset Management Plan 17 August 2010Municipal emergency Management Plan 21 september 2010Heatwave strategy 16 november 2010Code Red Fire danger Procedure 23 november 2010Hepburn economic development strategy 21 december 2010International Women’s day and Women’s Honour Roll organising Committee operating Guidelines

15 March 2011

Hardship Policy 15 March 2011Revenue Policy 15 March 2011Rating strategy 19 April 2011Privacy Policy 19 April 2011Procurement Policy 17 May 2011Investment Policy 17 May 2011Recreation development Policy 17 May 2011Complaints Handling Policy 28 June 2011Youth Policy 28 June 2011events Policy 28 June 2011Risk Management Policy 28 June 2011Risk Management Framework 28 June 2011Internal Audit Charter 28 June 2011Borrowings Policy 28 June 2011

indicator Description 2010-2011 2009-2010 2008-2009

overall performance Community satisfaction Result for overall performance 52% 56% 58%

Advocacy Community satisfaction Result for Council’s advocacy andcommunity representation on key local issues

57% 57% 61%

engagement Community satisfaction Result for Council’s engagement indecision making on key local issues

51% 54% 54%

All rates Average rates and charges per assessment $1,296 $1,218 $1,110Residential rates Average rates and charges per residential assessment $1,320 $1,113 $1,010operating costs Average operating expenditure per assessment $2,642 $2,041 $1,970

Capital expenditure Average capital expenditure per assessment $832 $639 $473Infrastructure Ratio of current spending on capital renewal of existing

infrastructure assets which returns the service potential or the life to its original

133% 94% 68%

Infrastructure Ratio of current spending on capital renewal of existinginfrastructure assets which returns the service potential or the life to its original plus capital spending on maintenance

119% 96% 77%

debt Average liabilities per assessment $882 $883 $748operating result operating result per assessment $771 $962 $1,260

Victorian government Indicators


Statutory InformationCouncil is required to maintain a public register of various pieces of information in accordance with the Local Government Regulations. This information is stored in the public register. The public register is available for inspection at the Daylesford Town Hall Office at 76 Vincent Street, Daylesford.

The register contains the following information as prescribed by the Regulations.

National Competition Policy Compliance: 2010-2011

certification by the chief executive officerHepburn Shire Council has complied with the requirements of the National Competition Policy (NCP) for the period 1 July 2010 to 30 June 2011, in accordance with the requirements outlined in National Competition Policy and Local Government (Revised 2011) as set out below:I certify that:

a) this statement has been prepared in accordance with the 2010-11 National Competition Policy reporting guidelines; and

b) this statement presents fairly the Council’s implementation of the National Competition Policy. Signed:

Kaylene Conrick Chief Executive Officer30 June 2011

Corporate Governance

Documents to be made available for public inspection:(a) details of current allowances fixed for the Mayor, Lord Mayor (if any) and

Councillors under section 74 or 74A of the Act. (b) The total annual remuneration for all senior officers in respect of the current

financial year and the previous financial year, set out in a list that states— (i) ranges of remuneration of senior officers, where the difference between the lower amount and the higher amount in each range must not exceed $10 000; and (ii) the number of senior officers whose total annual remuneration falls within the ranges referred to in subparagraph (i).

(c) details of overseas or interstate travel (with the exception of interstate travel by land for less than 3 days) undertaken in an official capacity by Councillors or any member of Council staff in the previous 12 months, including the names of the Councillors or members of Council staff and the date, destination, purpose and total cost to the Council of the overseas or interstate travel, including accommodation costs.

(d) names of Council officers who were required to submit a return of interest during the financial year and the dates the returns were submitted.

(e) names of Councillors who submitted returns of interest during the financial year and the dates the returns were submitted.

(f) Agendas for and minutes of ordinary and special meetings held in the previous 12 months kept under section 93 of the Act except if the minutes relate to parts of meetings which have been closed to members of the public under section 89 of the Act.

(g) A list of all special committees established by Council and the purpose for which each committee was established.

(h) A list of all special committees established by the Council which were abolished or ceased to function during the financial year.

(i) Minutes of meetings of special committees established under section 86 of the Act and held in the previous 12 months except if the minutes relate to parts of meetings which have been closed to members of the public under section 89 of the Act.

(j) A register of delegations kept under sections 87 and 98 of the Act, including the dates on which the last reviews under sections 86 (6) and 98 (6) of the Act took place.

(k) submissions received in accordance with section 223 of the Act during the previous 12 months.

(l) Agreements to establish regional libraries under section 196 of the Act.

(m) details of all property, finance and operating leases involving land, buildings, plant, computer equipment or vehicles entered into by the Council as lessor or lessee, including the name of the other party to the lease and the terms and the value of the lease.

(n) A register of authorised officers appointed under section 224 of the Act.

(o) A list of donations and grants made by the Council during the financial year, including the names of persons or bodies which have received a donation or grant and the amount of each donation or grant.

(p) A list of the names of the organisations of which the Council was a member during the financial year and details of all membership fees and other amounts and services provided during that year to each organisation by the Council.

(q) A list of contracts valued at $150 000 (or such higher amount as is fixed from time to time under section 186 (1) of the Act) or more— (i) which the Council entered into during the financial year without first engaging in a competitive process; and (ii) which are not contracts referred to in section 186 (5) or (5A) of the Act.

A. trade Practices compliancestate whether the Council is compliant or non-compliant. If non-compliant, justify or cite actions to redress.

Compliant

B. local laws compliancestate whether the Council is compliant or non-compliant. List all local laws made or remade during 2010-11 which impose a restriction on competition:

Compliant

c. competitive neutrality compliancestate whether the Council is compliant or non-compliant for all significant businesses. List any significant businesses that are non-compliant:

Compliant


Section eight

Financial sustainabilityFinancial Performancen Surplus of $2.17 millionn Adjusted surplus of $3.5 million (excluding flood-related

items)n $25.6 million revenue with 53% coming from rates and

charges (excluding flood-related revenue)n $22.2 million expenditure with 42% attributable to labour

services and 30% due to materials and services (excluding flood-related expenditure)

n $169.9 million in capital assets, providing community facilities, roads, bridges and other infrastructure

n $7.0 million (excluding flood reimbursements received in advance) in cash, an increase on last year

n $3.5 million in loans and borrowings, a decrease on last year

Result Council achieved a surplus of $2.17 million for 2010-2011. However, this figure was significantly impacted by flood recovery expenditure and associated reimbursements and the devaluation of Infrastructure Assets damaged by the floods. The adjusted result (exclusive of these flood items) was $3.5 million.

This surplus compares favourably to the budgeted result of $1.4 million due to $2.2 million being received in unanticipated grant funding. For example, a portion of the Victorian Grants Commission and Local Roads Grant for the 2011-2012 year was prepaid in June 2011 ($985,000).

Maintaining a positive surplus is an imperative component of Council’s Financial Sustainability Strategy.

Revenue Total Revenue for 2010-2011 was $35.6 Million. This included $10 million in flood related reimbursements and grants, resulting in an adjusted revenue figure of $25.6 million. This result is greater than the budget of $23.1 million as a result of an additional $2.2 million in grant funds received.

Excluding the flood funds, Council’s two major revenue sources are Rates and Charges at 53% of revenue and Recurrent Grants at 23% of revenue - which highlights Council’s reliance on ratepayer funding to deliver services to the community.

2010-2011 Sources of revenue ($ thousands)

ExpensesCouncil expenditure was $27.5 million in 2010-2011. This is higher than the budgeted total of $21.8 million, but comparable to flood adjusted total expenditure of $22.1 million. Also included in expenses is $315,000 for superannuation to cover the top-up of Council’s share of the Defined Benefit Superannuation Fund, payable in early 2011-12.

Council’s expenses comprise 3 main categories: employee and labour costs (42%), materials and services (30%) and depreciation (21%).

2010-11 Categories of expenditure ($ thousands)

Financial StrengthCouncil’s major assets comprise Cash, Property, Infrastructure, Plant and Equipment.

CashCash has increased $4.6 million as a result of $4.8 million in flood reimbursements – which was received from the State Government in advance of works to be completed in 2011-2012.

The working capital ratio, which represents Council’s current assets as a percentage of current liabilities, is a way to assess Council’s ability to meet current commitments. The Victorian Auditor General’s Office (VAGO) also uses this ratio to ascertain Council’s financial sustainability and sets a financially prudent target of 150%.

At 30 June 2011, Council’s working capital ratio was 263%. When the prepaid flood reimbursement funds are excluded from the year-end cash balance, this ratio is 178%.

If the following factors were taken into account, the ratio would be similar to the budgeted figure of 106%:

n $2.2 million in unanticipated grant funding was received during the year, with the majority of this remaining in unspent cash at year end. Of particular note is the prepayment of the Victorian Grant Commission and Local Roads Grant for the 2011-2012 year in June 2011 ($985,000)

$3,274$299

$5,973

$1,379

$13,507

$985

$9,839

$314reimbursment

Statuory fees and fines Grants non recurrent

Contributions

Grantsrecurrent

other income

user Fees

rates and charges$13,507

$9,384

$215

$12,055

$4,742

$1,140other expenses

employee benefits

Depreciation and amortisation

Financecosts

Material and services


n The budgeted capital works and special projects program for the year was $12 million. However, $4 million of these works were not completed at year end, resulting in these funds remaining in cash at year end to be spent in 2011-2012

Working Capital Ratios (%)

Because of Council’s low cash base, the working capital ratio has fluctuated over the years as a result of the two factors identified above.

VAGO advises that a ratio of 106% as budgeted identifies a “need for caution with cash flow, as issues could arise with meeting obligations as they fall due”. In accordance with Council’s 10 Year Financial Plan which was reviewed during the year, Council needs to gradually increase this underlying ratio to eliminate any future cash flow problems.

Capital WorksCouncil’s Property, Infrastructure, Plant and Equipment have decreased by $2.3 million to $169.9 million at year end.

Council’s Capital Works Program was $8.7 million compared to a budget of $11.3 million. Of significance was the works on the Doug Lindsay Recreation Reserve in Creswick ($3 million) and Council’s Roads, Drainage, Footpath and Bridges Program of $3.2 million. The remaining $2.6 million in works will be added to the 2011-2012 Capital Works program.

However, as a result of the flood events, significant damage to Council’s Infrastructure Assets occurred. $5.9 million in recovery works are still required to repair Council assets to their pre-flood condition. Consequently, these assets have been devalued by $5.9 million, resulting in an overall decrease in total Property, Infrastructure, Plant and Equipment at 30 June.

Property, Infrastructure Plant and Equipment ($ Millions)

Of the $8.7 million spent during 2010-2011, 73% was spent on the renewal of assets. Renewal of assets as opposed to building new assets or upgrading assets is an important focus of Council as it works towards reducing the infrastructure gap.

LiabilitiesCouncil’s liabilities comprise predominately loans, amounts owed to suppliers and amounts owed to employees for leave entitlements.

Council’s borrowings remained fairly consistent, with a balance at year-end of $3.46 million. Council borrowed $380,000 during the year. Of this amount, $100,000 funded the final contribution to the Doug Lindsay Recreation Reserve Project and $280,000 will be invested to fund the construction of new units at Cameron Court, Clunes.

Borrowing is seen by Council as a useful mechanism for spreading the cost of an asset over the timeframe that the asset provides services to the community, therefore ensuring to a large extent that the ratepayers who utilise or receive a service from the asset pay for it. This also eliminates the need for a significant rate rise in a given year to raise funds for a project.

Balance of Borrowings ($ Millions)

180

160

140

120

100

80

60

40

20

02006/07

139.64150.16

162.95172.17 169.91

2007/08 2008/09 2009/10 2010/11

300

250

200

150

100

50

02006/07 2007/08 2008/09 2009/10 2010/11

111

197183

150

263

4

3

2

1

02006/07 2007/08 2008/09 2009/10 2010/11

2.53

3.613.49 3.46

1.74


Detailed information is provided in Council’s Financial Statements which are available on Council’s website.

Financial SustainabilityVAGO defines financial sustainability as “the capacity to meet current and future expenditure as it falls due. To absorb foreseeable changes and risks materialising, without significantly changing revenue and expenditure policies.”

VAGO is able to gain insight into Hepburn Shire’s financial sustainability by analysing the following indicators over a five-year period.n The underlying result ratio measures whether Council

generates enough revenue to cover operating costs (including the cost of replacing assets reflected in depreciation expense). The larger the percentage, the stronger the result

n The indebtedness ratio determines if Council is overly reliant on debt to fund capital programs. The higher the percentage, the less able to cover non-current liabilities from the revenues they generate themselves

n The self-financing ratio measures the ability to replace assets using cash generated by their operations. The higher the percentage, the more effectively this can be done

n The capital replacement ratio determines if Council has been replacing assets at a rate consistent with their consumption. Ratios higher than 1:1 indicate that spending is faster than the depreciating rate

n The renewal gap measures whether the rate of spending on existing assets through renewing, restoring, and replacing existing assets with depreciation. Ratios higher

than 1:1 indicate that spending on existing assets is greater than the depreciation rate. This calculation is similar to the one that engineers use to calculate the “infrastructure gap”.

VAGO also uses the working capital ratio to measure financial sustainability. Comparative rates for each of the above indicators over the last five years are as follows.

All the indicators for 2010-2011 suggest that Hepburn is in the low risk category and trends suggest that Council is decreasing reliance on debt and becoming more “self financing”.

Further, the increase in the capital replacement and renewal gap ratios demonstrate that Council has now recognised that if sufficient funds are not allocated to asset renewal then Council’s investment in those assets will reduce, along with the capacity to deliver services to the community.

However, the underlying working capital ratio suggests Council is subject to medium risk in relation to its ability to meet short term debts.

2006-07 2007-08 2008-09 2009-10 2010-11Underlying result (%) 0.87% -1.90% 14.60% 9.83% 5.49%Indebtedness (%) 18.20% 23.68% 28.60% 25.72% 14.89%self-financing (%) 13.60% 27.88% 31.12% 33.59% 36.66%Capital replacement (%) 1.00 1.49 1.31 1.43 1.78%Renewal gap (%) 0.75 0.81 0.68 1.06 1.43%

Section eight

All statements associated with Council’s financial reporting requirements are available separately on our website at www.hepburnshire.com.au and can either be reviewed online or downloaded as a separate document.

The Financial Reports include:

n Comprehensive Income Statementn Balance Sheetn Cash Flow Statementn Certification of the Financial Reportn Performance Statement

Financial Reporting Section nine

acknowledgementsDesign: The Mojo Box, Wheatsheafphotography: Council appreciates the Shire images photographed by our valued staff member, Dale Callahan

cOuncil OFFicE lOcAtiOns

Daylesford:76 Vincent street

Phone: (03) 5348 2306Hours: 8.30am – 5.00pm

Corner duke and Albert streets

Phone: (03) 5348 1577Hours: 8.30am – 5.00pm

creswick:

68 Albert streetPhone: (03) 5345 8399

Hours: 8.30am – 5.00pm

Postal Address:Po Box 21, daylesford Victoria 3460

Fax: (03) 5348 2306Email: [email protected]: www.hepburnshire.com.au