2257 BAN Annual Report 2006-07 web · 4 BANYULE CITY COUNCILANNUAL REPORT 2006 - 2007 Greensborough Ivanhoe Rosanna 9 – 13 Flintoff Street 275 Upper Heidelberg Road 44 Turnham Avenue

Banyule City Council

AnnualReport20062007


Annual Report 2006-2007

CONTENTS PAGE

HOW TO CONTACT BANYULE CITY COUNCIL

Service Centres 4

OUR PROFESSIONAL ADVISORS

Banker 5

Solicitor’s Panel 5

Auditors 5

BANYULE CITY – OUR VISION 6

BANYULE CITY – AN OVERVIEW

About Banyule 8

MAYOR’S STATEMENT 10

CHIEF EXECUTIVE OFFICER’S STATEMENT 14

CORPORATE GOVERNANCE

The Council 17

Councillors 18

Executive Management Team 20

Role of the Council

- Principles 22

- Delegation of Powers 22

- Councillors’ Legal Obligations 22

- Disclosure of Interests 22

- Register of Interests 22

Code of Conduct 23

Council Meetings 23

- Community Input 23

Council Committees 23

Councillor Remuneration 23

Electoral Representation Review 24

Ward Funds 24

Councillor Representation 26

Councillor Attendance 29

Consultation 30

Audit Committee 31

Public Information

- Information available for inspection 33

- Freedom of Information 34

- Accessing Freedom of Information 34

- Whistleblowers Protection Act 34

- Information Privacy Act 34

- Local Laws 34

CONTENTS PAGE

National Competition Policy Compliance 35

THE ORGANISATION

The Structure 37

Human Resources

- Organisational Development and Culture at Banyule 38

- Corporate Induction 38

- Workcover 38

- Award and Recognition Events 38

- Health and Wellbeing 38

- Competency Assessment and Training 38

- Human Resource Information Management System 39

- Workforce Planning 39

- Recruitment 39

- Work Experience 39

- Corporate Training Program 39

- Legislative Requirements 39

- Industrial Relations 39

- Banyule Council’s Consultative Committee 39

- Staff Profile 39

- Staff Analysis 41

A SUMMARY OF OUR PERFORMANCE

Banyule’s Achievements

- Community Development & Support 43

- Environmental Management 45

- Local Amenity and Built Environment Management 46

- Economic Development 47

- Leadership and Management 47

BANYULE’S FOUR YEAR STRATEGIC INDICATORS 50

VICTORIAN LOCAL GOVERNMENT INDICATORS 52

VICTORIA 2006 LOCAL GOVERNMENT INDICATORS OF COMMUNITY STRENGTH 55

BEST VALUE VICTORIA ANNUAL REPORT 58

PERFORMANCE STATEMENT 66

FINANCIAL STATEMENTS 74

STANDARD STATEMENTS COMPARISON REPORTS 122

CALENDAR OF COUNCIL AND COMMUNITY EVENTS 140

GLOSSARY 142

Index

BANYULE CITY COUNCIL ANNUAL REPORT 2006 - 20074

Greensborough Ivanhoe Rosanna9 – 13 Flintoff Street 275 Upper Heidelberg Road 44 Turnham AvenueGreensborough 3088 Ivanhoe 3079 Rosanna 3084

268 Banksia StreetWest Heidelberg 3081

Cnr Banksia Street and Waterdale RoadWest Heidelberg 3081

Postal Address: PO Box 51, Ivanhoe 3079DX: 97904 Ivanhoe

Telephone: 9490 4222TTY: 9432 7211Fax: 9499 9475

Email: [email protected] Internet: www.banyule.vic.gov.au


How to contact Banyule City Council

Service Centres

Parks and Buildings

Operations Centre

Contacting us

5

Commonwealth Bank of AustraliaUpper Heidelberg Road, Ivanhoe 3079

Best Hooper Deacons Elliott Stafford 563 Little Lonsdale Street Level 15 RACV Tower & AssociatesMelbourne 3000 485 Bourke Street 316A Queens Parade

Melbourne 3000 Clifton Hill 3068

FOI Solutions Macpherson & Kelley Macquarie,Level 5 Lawyers Lawyers and Strategists105 Queen Street 40-42 Scott Street Level 6 / 124 Exhibition StreetMelbourne 3000 Dandenong 3175 Melbourne 3000

Middletons Maddocks Meerkin & ApelLevel 29 Lawyers 46 Caroline Street200 Queens Street 140 William Street South Yarra 3141Melbourne 3000 Melbourne 3000 Melbourne 3000

Russell Kennedy SV Winter & CoLevel 11 / 469 Latrobe Street GPO Box 208DMelbourne 3000 Melbourne 3001

External:Victorian Auditor-General’s OfficeLevel 2435 Collins StreetMelbourne 3000

Internal (on behalf of Banyule City Council):WHK Day NeilsonAccountants & Advisers200 Malop StreetGeelong 3220


Our Professional Advisers

Banker

Solicitors

Auditors


Banyule City

Our Vision

7

What we strive for

Banyule will be a community with a range of qualitylifestyles in an urban setting enhanced by the naturalenvironment, and served by an effective andcommitted Council.

The core values that help us achieve our Vision are:

Values■ Community consultation and participation■ Accessibility■ Fairness for all■ Social and environmental diversity■ Community wellbeing■ Responsible management for a sustainable future ■ Community leadership and representation

Banyule Logo

The logo uses the brush stroke ‘B’ in the shape of the‘Welcome Swallow’, a bird found in this area. The brushstroke suggests a festivity and liveliness as well asacknowledging the artistic heritage of Banyule. The taildrafted more formally suggests a dynamic energy andforward direction of the municipality. The ‘WelcomeSwallow’ is seen on an arc, a stylised hill, reflecting themeaning of the name ‘Banyule’. The traditional coloursburgundy, royal blue and cream chosen for the logo giveit an element of formality that balances the moderndesign aspects.

Banyule City

Our Vision


The 20 suburbs of Banyule City are spread over 63square kilometres between 7 and 21 kilometresnortheast of central Melbourne. The Yarra River runsalong the City’s south border while the west is definedby Darebin Creek. Council services an estimatedpopulation of 118,000.

Banyule’s landscape is gently to steeply undulating, apartfrom some relatively flat land in the west and on theriver floodplains. Native vegetation flourishes in the eastand northeast, while exotic trees and shrubs dominatethe City’s southern and western parts.

Banyule is renowned for its open spaces and plentifulparklands, especially along the Yarra and Plenty Rivervalleys. There are 466 hectares of Council owned openspace in Banyule, as well as substantial areas of parklandmanaged by Parks Victoria. These provide a wealth ofrecreational, environmental and tourism opportunities

About Banyule

IvanhoeEast

ElthamNorth

IvanhoeEaglemont

Bellfield

HeidelbergWest Heidelberg

Heights

Rosanna ViewbankLower Plenty

Montmorency

Yallambie

Macleod

Watsonia

Greensborough

Briar Hill

Bundoora

WatsoniaNorth

St Helena

Heidelberg

DAREBIN

YARRA

BOROONDARA

MANNINGHAM

NILLUMBIK

Banyule City

An Overview

9

AboutBanyule

for the region. There are sites of botanical, zoological,habitat and heritage significance, including aboriginalarchaeological sites and scar trees and points of interestassociated with the famous Heidelberg School of Artists.

The City is primarily a residential area and retaining thecharacter of these individual neighbourhoods is importantto the local community.

Banyule is the active resident’s dream place to live withmany excellent community leisure facilities including indooraquatics and fitness centres at Ivanhoe,West Heidelbergand Watsonia and a 50 metre outdoor pool atGreensborough. Greensborough also has a syntheticathletics track, while a hockey centre and indoor netballstadium can be found at Bellfield and Macleod respectively.

Cycling and walking through Banyule is a popular pastime,made enjoyable by the many kilometres of bicycle andpedestrian trails throughout the City, particularly along theYarra and Plenty Rivers and the Darebin Creek.

Banyule has strong commercial centres, the largest beingthe Greensborough Project and plans for sustainable urbanvillage by 2009, Heidelberg Central and the IvanhoeShopping Centre.There are industrial areas in HeidelbergWest, Greensborough/Briar Hill and Bundoora, as well aspublic institutions such as Austin Health and Simpson ArmyBarracks. Banyule also has a range of educational andhealth and leisure facilities.

Banyule City An Overview

Banyule City Council again scored a high approvalrating of 71 in the State Government’s annual survey of “community satisfaction” with local government.Banyule’s rating was up three points from last year,with high scores also for advocacy, responsiveness andcommunity engagement.

Council launched plans for an important HousingStrategy this year, which will guide future housingdevelopment in Banyule. A community survey,information sessions and workshops helped Council toproduce an Issues and Opportunities Paper to highlightcurrent and future local housing needs under fivethemes: Sustainability,Affordability, Diversity, Characterand Infrastructure, Services and Transport.

The Strategy was partly in response to the StateGovernment’s 2030 Strategy that says Melbourne willneed to accommodate 620,000 extra households overthe next 30 years.With Melbourne growing at 1,000people per week, and its population already passing 3.8million, Banyule wants to be sure it controls the impactthat this growth has on our beautiful municipality.

Since Banyule started work on its strategy “MortgageStress” and housing affordability have becoming keyissues. Rising interest rates have seen a significantincrease in mortgage defaults around Australia, soaffordable and sustainable housing is an issue whosetime has come, and Banyule is at the forefront asalways, looking for practical but creative, people-basedsolutions.

In another innovation Council employed a new GraffitiProject Worker to help tackle graffiti in Banyule. He isworking with our Community Safety Officer to assessgraffiti hotspots and reduce the likelihood of thembeing tagged, with strategies including community artprojects, workshops and planting.The aim is to beautifythe area, reduce tagging and increase perceptions ofsafety.


Cr Wayne Phillips Mayor


Mayor’s Statement

As part of its comprehensive program to combat graffiti,Council also launched the Adopt Your Space program thisyear. It encourages people to band together in a local areato increase civic pride, encourage reporting of graffiti so it can be quickly removed and to reduce the incidence ofgraffiti through vigilance and other strategies. Some teamshave been issued with their own special product kits, sothey can even remove fresh graffiti themselves.The TrafficGraffix project – an art competition to decorate VicRoadsand Telstra utility boxes around Banyule – is also part ofCouncil’s innovative anti-graffiti strategy.

This year Council adopted a new Footpath Trading Policydesigned to ensure that our footpaths are safe, attractiveand accessible to all.These guidelines set out to balancethe sometimes competing interests of outdoor eatingareas, signage and the display of goods with safe and easyaccess for pedestrians and particularly disabled residents.The policy recognises three zones:The Pedestrian Zone,The Kerbside Zone which allows access to and fromparked vehicles, and the Trading Activity Zone.

Council approved the much-anticipated redevelopment of Greensborough as a “sustainable urban village” and inAugust Planning Minister Rob Hulls officially launched theproject. Banyule will get $85.4 million worth of regionalaquatic and leisure centre with a 50-metre indoor heated

pool, a collaborative office (civic centre) town square,pedestrian walks, car parking and upgrades to Main St, ParaRd and Flintoff St for a cash outlay of $35 million.The totaldevelopment cost of Stage 1, which is due to start early in2008, will exceed $200 million.

“The Greensborough Project” will be marketed as “GreenEdge” – more life, more space, more Greensborough. Itwill transform this proud suburb into “the lifestyle capitalof the north-east” with economic spinoffs estimated at$210 million a year while generating 1,800 new jobs forBanyule.

Greensborough, named in 1841 by founding squatter,soldier and mail contractor Edward Green, will becomegreen in both name and nature through the project.

In another important development Council’s HeidelbergWest Neighbourhood Renewal Project got underway thisyear. A major facelift for Malahang Reserve with newwalking paths, playgrounds and more have made a hugeimpact on the park and precinct. Redevelopment of theBell St Mall area, a new library and other communityprograms are all part of this major project.

It was with great pleasure that I welcomed 200 Vietnamveterans, their partners and carers, to a civic reception thisyear to commemorate the 40th anniversary of the Battle

11

Banyule City Council Mayor’s Statement

“It is all part of Council’s push..(to)..make Banyule a community and localgovernment leader in environmentalawareness and sustainability”.



of Long Tan. State President of the Vietnam Veterans’Association, Banyule resident Bob Elsworth, said theDiamond Valley Vietnam Veterans’ sub-branch was thesecond biggest in the state, with more than 220 membersand growing.About 60,000 Australians, 40 per cent of themconscripts, served in the Vietnam War from 1962-1975.520 died and about 50,000 are still alive.

In November the Olympic Village in Heidelberg Westrelived the excitement of 50 years ago when it housedathletes of the 1956 Olympic Games.A “Village Festival”celebrated the event with historical displays and tours,a visit from 1956 athletes, FE-FC Holden car displays andmore.

Another important milestone this year was the 70thbirthday of the Heidelberg Town Hall – now known as TheCentre Ivanhoe. The Centre Ivanhoe is widely recognisedfor its outstanding Art Deco architecture.The anniversaryfeatured an open day with public tours and displays ofmemorabilia and a celebration ball.

On the environmental front this year Banyule andSustainability Victoria (formerly EcoRecycle) introduced a new permanent dropoff facility to help residents “detox”their homes. Council can now accept batteries, householdgas bottles, paint, motor oil and fluorescent lighting tubesat its Waste Recovery Centre in Waterdale Rd.

“The City Plan 2006-2010 confirmsCouncil’s commitment to support thedevelopment of a cohesive communitybased on mutual respect, the valuing ofdifference and diversity, and providingopportunities for everyone to participatein the life of the community”.

13


This year Council also increased the range of plasticbottles and containers that it can recycle. Previously onlyplastics marked with the recycle codes 1, 2 and 3 could beplaced in the yellow-topped recycle bins, but now we canhandle 4, 5, 6 and 7 too, which includes icecreamcontainers and their lids, yoghurt and take away foodcontainers as well as other plastics. It is all part ofCouncil’s push to divert waste from landfill and makeBanyule a community and local government leader inenvironmental awareness and sustainability.

As we see an increased emphasis worldwide on globalwarming and the need for sustainability, Banyule CityCouncil has led the way with its Sustainable HomesProgram.This innovative series of seminars and workshopsover the past year has helped many residents choose thepath to a greener lifestyle with lower impact on theenvironment. Sessions covered topics including BeingWaste Wise, Green Housing, Buying Green, Green Traveland Green Gardens. Council is setting an example in allthese areas, with the installation of water-saving devices,efficient street lighting trials, green purchasing programsand more.

During the year outdoor advertising company JC Decauxcompleted the installation of 119 new bus shelters inBanyule at no cost to ratepayers. As part of the 15-yeardeal advertising on 47 of the shelters will fund the state-of-the-art facilities that feature solar power and comply withmodern disability access standards. The contract includescleaning and maintenance by JC Decaux at no cost toCouncil.As well as providing a greater level of comfort forresidents, the shelters are designed to encourage greateruse of public transport – relieving traffic congestion andhelping the environment.

In January Banyule welcomed musician and TV celebrityGeoff “Coxy” Cox as its Australia Day Ambassador. Theformer drummer from Brian Cadd’s band and the LittleRiver Band is known more recently as host of the TVtravel show “Coxy’s Big Break.” He helped welcome 90new citizens to Banyule.

Your Council is committed to working together to makeBanyule an even better place to live, work and play. To thatend Council has developed a four-year City Plan. Its fivekey strategic objectives are:

■ Community Development and Support■ Environmental Management■ Local Amenity and Built Environment Management■ Economic Development■ Leadership and Management

The City Plan 2006-2010 confirms Council’s commitmentto support the development of a cohesive communitybased on mutual respect, the valuing of difference anddiversity, and providing opportunities for everyone toparticipate in the life of the community. It was updated thisyear after community consultation to ensure that it keepspace with Banyule’s changing needs and priorities.

Cr Wayne PhillipsMayor

Once again, Banyule Council finished the 2006/2007year in a sound financial position.

The operating result for the year, combined with totalassets of $752.1 million, indicate that Council is in avery sound financial position and remains debt-free.Infrastructure assets, property, plant and equipmentform the majority of assets although healthy cashinvestments at year-end of $40.6 million provide strongcashflow.

Council’s Strategic Resource Plan key objective isfinancial sustainability in the medium to long term,while still achieving Council’s corporate objectivesspecified in the Council Plan including maintainingexisting service levels and a responsive New Worksprogram.

At June 30 2007, the financial statements show a netsurplus of $25,000. This result is in line with theexpected reduction in operating losses over the nextfour years and a move towards surpluses as detailed inthe Strategic Resource Plan that forms part of Council’sCity Plan 2006-2010.

Council’s performance against set objectives for2006/07 has been excellent with financial objectivesattained, 90% of the $14.3 million New Works andServices Program completed and 95% of the actions inthe annual Business Plan completed.

The sound financial position of the Council provides abase for exciting opportunities in the future. Theseinclude the Greensborough Project, Bell Street Mall andIvanhoe Civic areas. New libraries in Ivanhoe and WestHeidelberg form part of these opportunities.

This will be my last annual report as CEO of Banyule.In July I announced my intention to retire onDecember 14, 2007 after exactly 13 years in the job.I plan to take a short break and then look at a varietyof opportunities including helping community (not for



Chief ExecutiveOfficer’s Statement

Doug Owens Chief Executive Officer

15

Banyule City Council Chief Executive Officer’s Statement

“I have loved my time at Banyule.We have great staff who take enormouspride in working with the Banyulecommunity”.

profit) organisations. I have led the Council sinceDecember 15, 1994 when Banyule was formed from theformer municipalities of Heidelberg, Diamond Valley andEltham.

I have loved my time at Banyule.We have great staff whotake enormous pride in working with the Banyulecommunity. After 37 years in local government and 20 as a Chief Executive Officer it is time to do different things.It is a new challenge, and one I am looking forward to.

My congratulations and thanks to all Banyule staff. Youreffort over the past 13 years has been tremendous and I have no doubt it will be rewarded with continuingimprovement in the exciting years ahead.

I extend my thanks to Banyule councillors for theirsupport and effort, and wish you all well.

Doug OwensChief Executive Officer



CorporateGovernance

PICTURED FROM LEFT

Cr Dale Peters, Cr Peter McKenna, Cr Tom Melican, Cr Dean Sherriff,Cr Wayne Phillips (Mayor), Cr Anthony Carbines, Cr Jenny Mulholland

Banyule is divided intoseven wards with onecouncillor representingeach ward. LocalGovernment Electionshave been held everythree years by attendancevoting.The last TriennialElection was held on 26th November 2005.

17

Origin of Ward Names

BakewellBrothers who established the Plenty Station (havingbought the land from Dr Martin).

BealeMajor Edward Beale amongst other contributions,founded St Katherine’s Church after the church onthe Island of St Helena.

GriffinWalter Burley Griffin, the architect of Canberra,planned estates in the area.

GrimshawAn identity of the Greensborough/Watsonia/Bundoora area, Grimshaw contributed to public lifeand is honoured by the naming of the major eastwest linking road.

HawdonJoseph Hawdon, an identity of Warringal Township,built the Banyule Homestead and with otherssought the government grant of town land forWarringal Cemetery.

IbbottNellie Ibbott was the first woman Mayor of the Cityof Heidelberg and the first in Victoria.

OlympiaCovers the area that hosted Melbourne’s OlympicGames in 1956.

The Council

RAILWAY

GRA

HA

MRD

PROGRESS RD

RYA

NS

RD

WATTLE DR

LOWER PLENTY RD

GREENSBOROUGH HWY

NORTHERN RING RD

PLEN

TY R

D

GR

EEN

SBO

ROU

GH

RD

WA

IOR

A R

D

BELL STBROWN ST

PLYMOUTH ST

ANDERSON ST

WAT

ERD

ALE

RD

LIVINGSTONE ST

BOLT

ON

ST

Plen

tyR

iver

Yarra River

Yarra

River

Darebin

Creek

Grimshaw

IbbottOlympia

Griffin

Beale

Hawdon

Bakewell

GRE

ENSB

ORO

UG

HH

WY

KARING

AL

DRV


Cr Wayne PhillipsBeale Ward Elected 2005 Retires 2008Phone: 0408 999 189Mayor 2005/06 and 2006/07

Wayne has lived locally for 37 years and currently resides inGreenhills. He has served the community for 16 years as acouncillor, previously with Diamond Valley and now Banyule.Wayne also represented the area for 10 years as a StateMember of Parliament.

The challenge for Council will be to ensure rates are spentwisely and continue to provide the wide range of servicesbeing demanded.

Beale Ward is very unique and very different to other areasof Banyule and therefore needs to be protected frominappropriate development.

Cr Peter McKennaBakewell Ward Elected 2005 Retires 2008Phone: 9434 2461 Fax: 9432 6264 0409 027 762 (m)

Living with his young family in Yallambie, Peter is a smallbusiness man and is an active member in local communityorganisations.

He represents Council on the Greensborough Project(GPAC) Consultative Committee and the GreensboroughSafer Shopping Project Group, is on a number of internalcommittees including the Recreational Strategy Committeeand Strategic and Visionary Planning Committee and is animmediate past member of the Yarra Plenty RegionalLibrary Board and Audit Committee.

Peter strongly believes in community involvement in thedecision making process and that strong community spirit isbuilt on that involvement.

He is a strong supporter of local small business andbelieves that ‘small business and the entrepreneurial spirit isthe lifeblood of the community’.

Peter strongly advocates that a strong, stable Council withprogressive and sensible strategies ensures Banyule will bethe model Council all municipalities will want to emulate.

Cr Jenny MulhollandGriffin Ward Elected 2000 Retires 2008Phone/Fax: 9458 1391 Email: [email protected] Mayor 2003/04 & 2004Deputy Mayor 2005

Jenny has lived in Ivanhoe for the past 25 years withhusband David and their four children and has participatedactively on a range of community groups during that time.She is currently Fundraising Chairperson of the LionsHouse Foundation and on the Board of the BanyuleCommunity Health Service.

Jenny is the Councillor representative on the followingcommittees:■ Audit Advisory■ Greensborough Principal Activity Centre (GPAC)■ Consultative Committee Municipal Health Plan■ Disability Reference Group■ Municipal Association Victoria■ Chairperson of Napier Waller Property Committee of

Management

Jenny’s policies focus on family values, continuing a strongstand on inappropriate development, working with theolder community to improve services they need to stayactive and providing stability and experience for Council asit works for all of our community to build an even betterplace to live.

Cr Dean SherriffGrimshaw Ward Elected 2000 Retires 2008email: [email protected]: 9466 9652 Fax: 9466 9195

Cr Sherriff is a member of the Australian Labor Party(Bundoora Branch), Bundoora Football Club (Honorary),Friends of Gresswell Forest, Bundoora Residents' ActionGroup, Bundoora Bowling Club (patron),Watsonia LibraryImprovement Group, Watsonia Football Club,AustralianDenizli Association (Honorary), Northern Ring RoadExtension Campaign, Banyule Ratepayers' Association andthe Economics Society of Australia.Dean was educatedlocally at La Trobe University where he graduated with aDegree in Economics while working as a factory workerand a shop assistant. He now runs his own successfulfinancial services and management consulting company fromhis home in Bundoora. Dean also recently completed aCertificate in Engineering as part of a broadening of hisconsulting services.

Banyule City Council Corporate Governance

Councillors

He believes that it is important for Banyule City Councilto maintain a strong financial position while serving theneeds of the community.A great believer in equality ofopportunity he believes that community services shouldfocus on "helping people to help themselves".

Dean hopes that Council will adopt family friendly policiesthat are also supportive of small business. Most of all CrSherriff believes that the key to a vibrant democracy is theinvolvement of the community in decision making. Deanbelieves that we should be able to expect more from ourpublic officials. "We need leaders of vision.After all "wherethere is no vision, the people perish".We need people whowill take on a task not because it is easy but because it ishard".

Together with local residents Dean wants to make thenorthern suburbs an even better place to live.

Dean Sherriff - 'Working for the North'.

Cr Dale PetersHawdon Ward Elected 1997 Retires 2008Phone/Fax: 9444 6514Mayor 2000

Dale Peters was elected as Councillor for Hawdon Wardin 1997 and re-elected in 2000 and 2003. Hawdon Wardcovers the areas of Viewbank, Lower Plenty andMontmorency (part). Dale was the youngest Mayor in ourhistory, being elected Mayor in 2000/01 at the age of just24.

Dale has lived in Montmorency all his life, attendingMontmorency Primary School, Montmorency SecondaryCollege and later Monash University where he received aDegree in Economics and a Degree in Arts.

Dale is a member of several local groups including theMontmorency Tennis Club, Montmorency Football Club(Honorary) and Montmorency RSL (Honorary). In hisspare time, Dale enjoys tennis, golf, bushwalking and fishing.

Cr Tom MelicanIbbott Ward Elected 2003 Retires 2008Phone: 9459 8026 Fax: 9459 8162 0413 043 015 (m)

Cr Tom Melican lives in Rosanna East with his wife andfour children. He is a long term resident of Banyule, whobelieves that Council should remain free from politicalinterference.

Cr Melican says ‘the Councillors may not all agree onevery issue and there is often vigorous debate, however allCouncillors are working for the good of Banyuleresidents’.An example of that teamwork was the financiallyresponsible budget that Council recently adopted, withmaintained and expanded services, with a below averagerate rise despite increasing costs and reduced funding fromthe Federal and State Government.

As Council’s representative on the North East IntegratedTransport Strategy, Cr Melican is working to ensure thatthe public transport system is improved and extended tomeet the needs of the Banyule community. ‘We need amore sustainable transport system with less reliance onimported oil’ Cr Melican said.

‘Council’s biggest challenges are the ever increasing trafficcongestion and the pressure of more development withinBanyule’. Cr Melican is determined to meet thesechallenges and to ensure that Banyule remains the bestCouncil in Victoria.

Cr Anthony CarbinesOlympia Ward Elected 2005 Retires 2008Phone: 9459 6042 Fax: 9459 3829 0408 523 472 (m)Email: [email protected]

Elected in 2005 on a platform of ‘Renewing ourneighbourhood’,Anthony is committed to a back to basicsapproach at Banyule City Council. He encouragesresidents to be active partners in the work of the Council.Anthony is keen to strengthen the Council’s role insupporting local volunteers and community organisationsin Banyule.

Anthony lives in Olympic Village, Heidelberg West and isemployed as a ministerial adviser to the State Governmentin the health portfolio. He has previously worked as ajournalist after completing a BA in Journalism at RMIT andYear 12 at Rosanna East High School (now ViewbankSecondary College).

Anthony is active in several community organisations andis a member of the Bellfield Community Centrecommittee of management. He is the Council’srepresentative on the Heidelberg West NeighbourhoodRenewal Steering Committee, the Metropolitan WasteManagement Group and the Yarra Plenty Regional LibraryBoard.

Banyule City Council Corporate GovernanceCouncillors

19


The Executive Management team is made up of the Chief Executive Officer and four Directors.

Doug OwensChief Executive Officer

Doug was appointed to the position of Chief ExecutiveOfficer at the City of Banyule in the north-eastmetropolitan area of Melbourne,Victoria in February 1995.

Prior to Banyule, Doug was Chief Executive Officer of theformer City of Moorabbin the then fifth largestmunicipality in Victoria, appointed at the age of 35. He hasbeen former Chairperson of the Local GovernmentQualifications Board; Chairperson for Victorian LocalGovernment Industry Training Committee; President of theInstitute of Municipal Management (Victorian Division);Chairperson of the Award Restructure/Structural EfficiencyWorking Party and a member of the former VictorianLocal Government Ministers Peak Council in HumanResource Development.

He is an advocate for continuing professional developmentand was the former Chairperson of the Deakin UniversityManagement Education Board for the Graduate Diplomaof Local Government Management.

Doug’s academic qualifications include: Bachelor ofBusiness Studies (Local Government) and GraduateDiploma of Business Administration. He is a Fellow of theInstitute of Municipal Management, Local GovernmentProfessionals and the Australian Institute of Management.


Executive Management Team

Doug Owens

21

Simon McMillanDirector City Development

Simon joined Banyule in 1999. He has over 18 yearsexperience in local government in inner, middle and outersuburban regions, in areas relating to the natural and builtenvironments including project management, heritage andurban design. Simon is responsible for a diverse area ofCouncil's services including development services, strategicand economic development and administration andgovernance. Simon has a Degree and Post GraduateDegree in Urban (Town) Planning and a Master in BusinessAdministration.

Simon is a committee member of the Planning Institute ofAustralia and a member of the Victorian Planning andEnvironmental Law Association.

Ramesh ChoudariDirector City Services

Ramesh joined Banyule in May 1995 and his area ofresponsibility as Director City Services covers HumanResources, Information Technology, Operations,Infrastructure Maintenance, Major Projects and Parks &Buildings.

Ramesh has over 30 years local government experienceand the last 22 years has been in management. Hisexperience in most aspects of local government andqualifications in management, community development andpublic health enables him to achieve his strong focus onreliability, quality, accessibility and relevance of Councilservices.

Sauro AntonelliDirector Community Programs

Sauro joined local government in 1993 after many yearswith the State and Commonwealth Governments wherehe held the positions of Director Office of Ethnic Affairs,Director Youth Affairs, General Manager Ethnic AffairsCommission and Secretary Environment ProtectionAuthority. Prior to that Sauro spent a number of years asan economist with the ANZ Bank.

Sauro is committed and passionate to provide Banyuleresidents with the best level of services that impact on thecritical phases of people’s lives whether that be infantwelfare, children’s services, youth services, aged care orleisure opportunities.

Sauro has a Bachelor of Commerce from MelbourneUniversity and is a member of the Local GovernmentProfessionals and is active in a range of communityorganisations.

Keith YeoDirector Corporate Services

Keith’s professional career in local government spans 25years and includes broad experience across variousfinancial and administrative service areas. Keith wasappointed as a Director at Banyule in April 1995.

Customer service excellence, organisational performanceand financial stability and stewardship are major focusareas. Keith has Graduate Diplomas in Management andAccounting and a Diploma of Business Studies. He is aFellow Certified Practising Accountant (CPA Australia) andFellow of Local Government Professionals (LGPro).

Banyule City Council Corporate GovernanceExecutive Management Team

Simon McMillan Ramesh Choudari Sauro Antonelli Keith Yeo


Role of the CouncilThe role of the Council is to provide leadership for thegood governance of Banyule.The Council serves thecommunity including ratepayers, residents, businesses,workers and community groups. Council is the level ofgovernment closest to the community and takes an activerole in advocating the needs and interests of the residentsof Banyule to other levels of government.

Principles

Banyule Council operates on the principle of acommitment to openness and transparency in respondingto the needs of its community. Council derives its power,role, purpose and functions from the Local Government Act1989. The principle duties of the Council are to:

■ review and confirm the strategic direction of theCouncil which is enunciated in the City Plan and theAnnual Business Plan;

■ approve the Council budget and resource allocationplan;

■ consider and approve a range of strategies and policiesprepared by Council officers;

■ fulfil its responsibilities in relation to providing qualityservices, occupational health and safety and protectionof the environment.

The Council is led by the Mayor who is appointed annuallyby the councillors and represents the Council in the publicforum. The Mayor takes precedence at all municipalproceedings and is the chairperson of all meetings. TheMayor is the spokesperson for the Council and representsthe views of the Council to the public.

Delegation of Powers

Numerous duties, functions and powers are conferred onCouncil through legislation such as the Local GovernmentAct 1989, the Planning and Environment Act 1987, the BuildingAct 1993 and others. The Council has delegated to theChief Executive Officer the authority and powersnecessary to comply with the legislation and implementthe strategies approved by the Council. The ChiefExecutive Officer has further delegated powers to Councilofficers who carry out the functions of the Council on aday to day basis.

Councillors’ Legal Obligations

The Local Government Act 1989 sets out, in general termsthe conduct expected of councillors and members ofspecial committees. In performing the role of a councillor,councillors must act honestly and must exercisereasonable care and diligence in carrying out their duties.

Councillors must not make improper use of their positionor information gained in their role as a councillor to:

■ gain, or attempt to gain, directly or indirectly, anadvantage for themselves or for any other person; or

■ cause, or attempt to cause, detriment to the Council.

Disclosure of Interests

The Local Government Act places stringent obligations oncouncillors to disclose any interests or conflict of interestthey may have in a matter that is before the Council.

Disclosure of interest provisions require the councillor todisclose the existence and nature of his or her interest. Itdoes not prevent the councillor from moving or secondingthe motion or voting on the matter.

Conflict of Interest (pecuniary or non pecuniary)provisions apply only if the interest of the councillor issuch that, in his or her opinion, the nature of the interestmay conflict with the proper performance of his or herpublic duties in respect of the matter. In these cases thecouncillor is not allowed to vote on the matter before theCouncil and must leave the Council Chamber before thevote is taken.

A “Pecuniary Interest” is any interest capable of beingmeasured in terms of money. A pecuniary interest doesnot need to be to the advantage of a councillor and mayeven be to their detriment.

Register of Interests

To ensure impartiality in decision making, councillors andsenior officers are required to make an annual writtenreturn of any prescribed interest they hold.


23

Code of ConductThe Local Government Act 1989 requires Council to developand approve a Code of Conduct within six months of ageneral election. The Council first adopted a Code ofConduct on 6 December 2004 and the Code wasreviewed by the Council on 6 March 2006.

The Code of Conduct includes:

■ rules of conduct;

■ procedures for resolving disputes between councillors;

■ procedures for the disclosure of interests and conflict of interests;

■ a statement of caretaker procedures for the electionperiod; and

■ procedures to ensure that Council resources are notinappropriately applied during an election period.

Council MeetingsCouncil decisions are made by councillors at Councilmeetings. Meetings are open to the public unless theCouncil resolves to close the meeting to considerconfidential matters. Council meetings provide residentswith an opportunity to witness the discussion anddecisions of Council, to ask questions of Council and toraise issues for Council to consider in its decision makingprocess

Council meetings are held fortnightly on a Mondayevening. Prior to the commencement of the formalmeeting there is a period allowed for a public forumduring which time questions without notice may be raisedwith the Council.

Community Input

Any person may address the Council on a matter that ison the Council agenda by submitting a written request tospeak on the day of the meeting. Speakers are allowedthree minutes in which to address the Council on theirsubmission.

The community is provided with the opportunity to makea written and/or verbal submission to the Council on anumber of very important matters. These include theCouncil budget, preparation of Council plans, policies andstrategies, and the sale or lease of Council land.

Community input is also available through the conventionalprocess of petitions. In this way members of thecommunity can raise the attention of the whole Council tomatters which are of concern to a number of residents.

Council CommitteesCouncil has established a number of advisory committeesand councillors are appointed as representatives on thosecommittees at the Annual Statutory meeting. In addition tothe Council committees there are a number of communitycommittees which include nominated councillorrepresentatives.

At the Ordinary Meeting held on 11 December 2006, theCouncil disbanded the Ward Fund Allocation SpecialCommittee that had been established to considerapplications for funding assistance from the Ward Fundaccount established in the Council Budget. Instead theCouncil found it more expedient to deal with theapplications for Ward Funds as a finance report in theOrdinary Council Agenda.

CouncillorRemunerationThe Local Government Act provides that councillors are paidan allowance for their services. These allowances weredetermined by the State Government in 2001. Councillorseach receive an annual payment of $15,000 and the Mayorreceives an allowance of $46,500. Councillors also receiveother forms of support such as communication assistanceand stationery to enable them to fulfil their role inaccordance with the Local Government Act.


Ward Funds Allocated 2006/2007Date Ward Recipient Purpose Amount

24 Jul 2006 Beale Diamond Valley Learning Centre Safety screen for heater $236.50

24 Jul 2006 Beale Greenhills Residents Group Printing of newsletter $300.00

21 Aug 2006 Griffin Heidelberg Historical Society Archive storage cupboard & archival document storage materials $765.80

21 Aug 2006 Griffin Heidelberg RSL Bus hire for visit to Shrine of Remembrance $500.00

21 Aug 2006 Griffin Heidelberg/East Ivanhoe Uniting Church Contribution towards water tank $200.00

21 Aug 2006 Olympia Heidelberg Public Tenants Assoc. Gas fired BBQ & gas bottle $365.13

18 Sep 2006 Bakewell Yallambie Park Pre School Tree replanting at pre school $500.00

18 Sep 2006 Grimshaw Watsonia Neighbourhood House Contribution towards rental costs $2,000.00

18 Sep 2006 Grimshaw Bundoora Cricket Club Replacement of lights $4,300.00

18 Sep 2006 Grimshaw Bundoora Football Club Replacement of lights $4,300.00

16 Oct 2006 Griffin Katia Rotar Voluntary Peer Educator in rural South Africa $1,000.00



ElectoralRepresentationReviewThe Minister for Local Government advised on 4 January2007 by notice in the Government Gazette of the firstelectoral representation review for Banyule Council. Thepurpose of the review was to recommend:

> the number of councillors and the electoral structurethat provides fair and equitable representation for thepersons who are entitled to vote at a general election ofthe Council;

> if the municipal district is to be divided into wards,boundaries for the wards that provide a fair andequitable division of the municipal district; and

> a structure whereby the number of electors representedby each councillor is not to vary from other councillorsby more than plus or minus 10 per cent.

The review was undertaken by the Victorian ElectoralCommission (VEC) and Council made a preliminarysubmission recommending no change to the number ofcouncillors and number of wards and only minor boundaryadjustments between wards to ensure voter parity.

The resultant Preliminary Report from the VictorianElectoral Commission recommended nine councillors innine single member wards, with an alternativerecommendation of seven councillors in seven singlemember wards, with minor boundary changes toaccommodate voter equity.

Council made a second submission to the VEC preliminaryreport, as did a large number of residents in thecommunity, to support the alternative recommendation ofseven councillors in seven single member wards. The VECfinal recommendation to the Minister which was ultimatelyaccepted is that Banyule Council retain seven councillors inseven single member wards with minor boundaryadjustments.

Date Ward Recipient Purpose Amount

16 Oct 2007 Grimshaw Bundoora Pre School Celebration of indigenous cultures $900.00

16 Oct 2006 Griffin Banyule Support & Information Centre 1.To cover increase in coordinator’s wages $1,500.002. Foodbank $1,500.00

13 Nov 2006 Bakewell All Saints Anglican Church Hire of mobile stage from Banyule Council $335.00

13 Nov 2006 Grimshaw Berry Street Victoria Inc. Purchase of furniture & equipment for volunteers $1254.00

5 Mar 2007 Beale Churinga Support Services Mosaic signage at Browns Reserve $1,500.00

27 Mar 2007 Hawdon Montmorency Tennis Club BBQ contribution $900.00

2 Apr 2007 Griffin Heidelberg Football Club Cost of transporting recycled water to reserve $1,818.18

2 Apr 2007 Griffin Mr Rowan Harrison Cost of reproduction & framing of prints for 70th Anniversary of Town Hall $356.40

7 May 2007 Griffin Mrs Dee Miller Cost of Christmas party for special needs children $850.00

4 Jun 2007 Hawdon Montmorency RSL Memorial wall around Cenotaph at Petrie park $4,000.00

4 Jun 2007 Hawdon Montmorency Football Club Padding around goal posts & line marker. $1,775.25

4 Jun 2007 Hawdon Banyule Council Light pole Petrie Park $5,000.00

4 Jun 2007 Hawdon Banyule Council Native trees Petrie Park $500.00

4 Jun 2007 Hawdon Mens Shed Skip hire $284.00

25 Jun 2007 Beale Sherbourne Preschool Water tank and installation $2,500.00

25 Jun 2007 Olympia Banyule Council Fairway Street works $5,488.00

25 Jun 2007 Griffin East Ivanhoe Bowls Heater $5,000.00

25 Jun 2007 Griffin Heidelberg Brass Band Vests for Band $2,000.00

25 Jun 2007 Beale Greenhills Primary School Improved access around school $4,918.00

25 Jun 2007 Olympia North Heidelberg Football Club Completion of carpark & drainage works at Shelley park $5,000.00

25 Jun 2007 Olympia Livingstone Community Centre Replacement of playground surface $3,200.00

25 Jun 2007 Olympia Bellfield Community Centre Courtyard redesign & resurfacing $1,300.00

25 Jun 2007 Olympia Haig Street Primary School Provision of goal post safety pads $778.80

25 Jun 2007 Olympia Olympic Adult Education Cost of air conditioning /heating in meeting premises $999.00

25 Jun 2007 Olympia Banyule Community Health Centre Computer at the West Heidelberg Campus for use by Somali community $2,868.80

25



1 July 2006 to 27 November 2006 to26 November 2006 30 June 2007

Banyule Committees

Audit Committee – Councillors Cr Jenny Mulholland Cr Jenny MulhollandImproves the quality of financial reporting and ensures Cr Wayne Phillips Cr Dean Sherriffthe Council makes informed decisions regarding Cr Wayne Phillips accounting policies, practices and disclosures. (substitute)

Disability Reference Group Cr Jenny Mulholland Cr Jenny MulhollandAdvises Council on issues of access and inclusion for people with disabilities; and through Council to advise and inform the wider community.

Environment Advisory Committee Cr Tom Melican Cr Tom MelicanAssists with the implementation and monitoring of the Cr Dale Peters (substitute) Cr Dale Peters (substitute)Banyule Environment Policy and Strategy and to produce advice on environmental matters.

Property/Strategic Direction Advisory Committee Cr Jenny Mulholland Cr Jenny MulhollandProvides input to Council on future housing requirements for the Ivanhoe Library and the use of the Rosanna and Ivanhoe Offices as part of the Greensborough Principal Activity Centre(GPAC) Project

Joint or External Committees

Asset Management Steering Committee Cr Wayne Phillips Cr Wayne PhillipsTo implement Council’s Asset Management Cr Tom Melican Cr Tom MelicanStrategy and ensure a corporate approach acrossCouncil.

Greensborough Principal Activity Centre Community Consultative Committee Cr Peter McKenna Cr Peter McKennaProvides input to Council on the urban design Cr Jenny Mulholland Cr Jenny Mulhollandand development proposals for Greensborough Cr Wayne Phillips Cr Wayne PhillipsPrincipal Activity Centre.

Metropolitan Transport Forum Cr Tom Melican Cr Tom Melican

Metropolitan Waste Management Group Cr Anthony Carbines Cr Wayne PhillipsProvides a framework for strategic regional Cr Tom Melican (substitute) Cr Dale Peters (substitute)waste management planning and a waste management co-ordination role for waste issuesin regions.


Councillor Representation

27


Joint or External Committees (cont.)

Municipal Association of Victoria Cr Jenny Mulholland Cr Jenny MulhollandProvides leadership by supporting local Cr Tom Melican (substitute) Cr Tom Melican (substitute)governments to achieve high levels of respect and recognition through improved performance.

Municipal Association of Victoria – Melbourne 2030 Councillor Reference Group Cr Tom Melican Cr Tom MelicanEstablished by the MAV as a forum to identify, discuss and progress actions to address issues for Local Government associated with the implementation of the Melbourne 2030 (M2030) policy framework.The Reference Group will assist in discussion and dissemination of information in members’ local government areas and among key local government stakeholders.

Municipal Association of Victoria – Strategic Transport & Infrastructure Advisory Group Cr Tom Melican Cr Tom MelicanTo advise the MAV on strategic infrastructure and transport issues impacting on local governments and to assist the MAV to carry forward key policies and campaigns in this area.

Napier Waller Property Committeeof Management Cr Jenny Mulholland Cr Jenny MulhollandTo manage the restoration of the house, garden and art collection of the former residence of the artist Napier Waller.

North East Integrated Transport Study Steering Committee Cr Tom Melican Cr Tom Melican

Northern Regional Housing Group Cr Wayne Phillips Cr Wayne PhillipsA forum to highlight housing issues and needs, Cr Dale Peters (substitute) Cr Dale Peters (substitute)identify challenges and determine innovative and sustainable approaches to address these across the northern region.

Safer Greensborough Project Working Group Cr Peter McKenna Cr Peter McKennaA strategic partnership with major stakeholders in the Greensborough shopping precinct to address issues in relation to community safety and crime prevention.

Victorian Local Governance Association Cr Wayne Phillips Cr Dean SherriffThe VLGA is a principal source of democratic Cr Anthony Carbines Cr Anthony Carbines co-operative leadership to municipalities and (substitute) (substitute)associated community groups. It assists local governments to maintain peace, order and good government in Victoria.

Banyule City Council Corporate GovernanceCouncillor Representation



Joint or External Committees (cont.)

Yarra Plenty Regional Library Audit Committee Cr Peter McKenna Cr Anthony Carbines

Yarra Plenty Regional Library Service Board Cr Peter McKenna Cr Tom MelicanThe Board is made up of two representatives of Cr Anthony Carbines Cr Anthony Carbinesthe three municipalities (Banyule, Nillumbik,Whittlesea) that constitute the service. Its role is to set policy and direction for the regional library service.

Banyule City Council Corporate GovernanceCouncillor Representation

29

Council and Committee Meetings 1 July 2006 to 30 June 2007.

Meetings of Council

Council 21 21 20 20 20 19 21 19

Special Meetings 6 6 6 6 6 5 6 4

Banyule Committees

Audit Committee 4 3 2

Disability Reference Group 5 3

Environment Committee 9 8

Property/Strategic Direction Advisory Committee 3 3 3 3

Joint or External Committees

Asset Management Steering Committee 2 2 0

Greensborough Project – Community Consultative Committee 6 5 2 3

Metropolitan Transport Forum 11 8

Metropolitan Waste Management Group 3 2

Municipal Association of Victoria (MAV) 3 3

Municipal Association of Victoria (MAV) – Melbourne 2030 Councillor Reference Group 5 0

Municipal Association of Victoria (MAV) – Strategic Transport & Infrastructure Advisory Group 6 5

Napier Waller Property Committee of Management 0 0

North East Integrated Transport Study Steering Committee 3 2

Northern Regional Housing Group 2 2

Safer Greensborough Project Working Group 3 2

Victorian Local Governance Association 11 0 0

Yarra Plenty Regional Library Board 6 5 2 3

Yarra Plenty Regional Library Audit Committee 4 3


Councillor Attendance

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Consultation

Council uses a wide range of methods for involving thecommunity in the decisions it makes.These include publicforums such as workshops, advisory committees, surveys,focus groups, community comment mechanisms, e-mailfeedback via Council’s website and individual feedback suchas formal submissions.

Networks, advisory committees and working groups

Networks, reference groups and advisory committeesprovide independent comment for Council and officers onvarious policies and strategies that are developed and laterimplemented.They cover the areas of leisure and sport,culture, disabilities and environment and consist of a broaddatabase of people within the community.

In addition to the standing networks and committeesmentioned above, short term working groups ofcommunity members are established for specific projects.These can range from organising a festival to givingcommunity perspective on major works.

Policies, Strategies & Plans

In addition to the community input provided for above,whenever Council is developing policies and strategiesconsultation occurs. In the 2006/2007 year, 10policies/plans were exhibited for public comment andadvertised through the local media and/or Council’snewsletter.

Statutory Procedures

Under the Local Government Act 1989 Council is requiredto call for formal submissions on matters such as proposeddiscontinuance of roads, special charge schemes andadoption of local laws.

Individual Feedback

Community members are encouraged to keep Council intouch with their views. Community feedback can be madevia a postcard, letter, telephone or email.

Surveys

Council conducts surveys during the development ofpolicies, services reviews or for monitoring communitysatisfaction with Council’s services.The size of the surveycan range from as few as three property owners/residentsto 1,000. One-on-one personal interviews are oftenconducted with traders in the development of centrestrategies.

Focus groups are another market survey method usedfrom time to time to test existing or proposed services.

Community Consultation

The following consultations were undertaken throughoutthe year:

■ Naming of Reserves – 1 Arthur Streeton Drive,Yallambie and 346 St Helena Road, Greensborough

■ Greensborough Project

■ Banyule Housing Strategy

■ Recreation Strategy

■ Redrafted Heidelberg Precinct Structure Plan

■ Builder’s Code of Practice

■ Banyule’s City Plan 2006-2010 (Year 2)

■ Disability Action Plan 2007-2010

■ Buna Reserve Masterplan

■ Ivanhoe Structure Plan

■ Gaming Machine Policy

■ Ageing Strategy and Plan

■ Arts & Cultural Strategy

■ Community Voices (CALD)

■ Public Open Space Strategy

■ Regional Tennis Feasibility Study

■ Community Receation Facilities Audit

31


Audit Committee

1. Role and ObjectivesThe Audit Committee is an Advisory Committee of theCouncil with an independent role of assessing internalcontrols and financial stewardship of the Council. It workswith Council and its auditors to ensure the community’sneeds are protected at all times.

The general role of the Audit Committee is to assistCouncil:

> in compliance with laws and regulations;

> in the discharge of its responsibility for financial reports;

> maintaining a system of internal control;

> maintaining the ethical values of the municipality; and

> introducing enhancements to assist the efficiency,effectiveness and sound governance of Council services.

The objectives of the Audit Committee include thefollowing:

> to improve the quality and objectivity of internal andexternal financial reporting;

> to ensure the Council makes informed decisionsregarding accounting policies, practices, disclosures andcomplies with legislation and regulations;

> to review the scope and outcome of internal andexternal audits;

> to ensure effective management and strong internalcontrols to protect the assets of the municipality;

> to add value to the Council’s operations;

> to ensure sound and timely communication occursbetween internal and external audit and withmanagement;

> to monitor adequacy of risk management systemcontrols relating to commercial risks.

2. MembershipThe Audit Committee consists of two councillors and twoindependent representatives as follows:

Appointment terms

Cr Jenny Mulholland 27/11/06 to 26/11/07

Cr Dean Sherriff B.Ec 27/11/06 to 26/11/07

Cr Wayne Phillips 27/11/06 to 26/11/07(Substitute)

Hugh Parkes(Chairperson & 02/10/06 to 31/12/08(Independent Representative)BA (Hons), MBA, FCA, CISA

Ray Liggett 04/07/07 to 30/09/09(Independent Representative)B.Sc (Hons), Grad. Dip. Data Processing, MBA,Advanced Management Program-Harvard

3. MeetingsDuring the last 12 months, the Audit Committee has meton four occasions to:

■ Monitor timely progress of management’s actioning ofaudit report findings.

■ Consider and approve the Strategic Audit Plan for 2007-2008 and the detailed scope for individual audits.

■ Review the 2006/07 Annual Report and recommend:

- Council’s Certification of the Financial Statements;

- Council’s Certification of Standard Statements;

- Council’s Certification of the Performance Statement;after having considered advice that no material issueswere highlighted during the audit and no high riskinternal control issues were found;

- The Best Value Victoria Annual report; and

- Victorian Local Government Indicators.

■ Review interstate and overseas conference attendanceby Council officers in accordance with CouncilResolution No FPOC.99.


Banyule City Council Corporate GovernanceAudit Committee

■ Consider and approve a five-year Strategic GovernanceManagement Framework for the period 2006/07 –2010/11 presented by management to address thedifferent levels of risk of activities of Council and tobalance the audit program across service units.

■ Consider the process and findings of the Bell Street MallTraders’ Association forensic audit.

■ Consider new Internal Audit Reports and consequentactions agreed between the internal auditor and CityManagement covering:

- Building Surveying Services

- Payroll & Human Resources Review

- Leisure Services & Facilities

- Youth & Family Services (Cash & Payment ControlsReview)

- Economic Development (Special Rates & Charges)

■ Receive an update on the proposed Regional MealsFacility Project being developed by a consortium ofcouncils

■ Review Civic Mutual Plus (ie CMP) Public Liability andProfessional Liability report demonstrating an improvingclaims history for Council and placement within top tenpercent of councils.

■ Monitor progress on Council’s asset management “StepProgram” to ascertain quality of assets and theirsustainable and useful lives.

■ Receive updates on the Greensborough PrincipalActivity Centre (GPAC) including developmentagreement negotiations, government funding andfinancial modelling, Planning Scheme Amendment 51,concept designs, contract development and constructionscheduling.

33

Information available for inspection

Section 222 (1) of the Local Government Act 1989 requiresthat documents containing prescribed matters of theCouncil are at all reasonable times open for inspection.

The following prescribed documents may be accessedfrom Council during normal working hours.

> Details of Mayor and councillor allowances fixed undersection 74 of the Act

> Details of senior officer’s salary packages

> Details of overseas or interstate travel

> Names of Council officers or councillors whosubmitted a return of interest during the year;

> Council Agendas and Minutes

> A list of special committees that were established,abolished or ceased to function during the year

> A register of delegations kept under Sections 87, 88 and98 of the Act

> Submissions received under Section 223 of the Act

> Agreements to establish regional libraries under Section196 of the Act

> Details of all property finance and operating leasesinvolving land, buildings, plant, computer equipment orvehicles

> A register of authorised officers appointed underSection 224 of the Act

> A list of donations and grants made by Council

> A list of organisations of which Council is a memberand details of membership fees

> A list of contracts greater than $100,000 that Councilentered into and which are not contracts under Section186(5) of the Act.

In addition to this, the Local Government Act and other Actsunder which Local Government operates, stipulate thefollowing information is available for public inspection:

■ Register of Interests (Section 81(11))

■ Minutes of Council Meetings (Section 93)

■ A copy of every Local Law (Section 120)

■ Annual Report (Section 131)

■ Auditor’s Report (Section 131)

■ Annual Budget (Section 130)

■ City Plan (Section 125)

■ Details of Differential Rates (Section 161)

■ Best Value – Quality and cost standards (Section 208F)

■ Register of all building permits issued (Building Act1983, Section 31)

■ Register of all registered dogs and cats in the MunicipalDistrict (Domestic (Feral & Nuisance) Animals ActSection 18)

■ A copy of the Municipal Planning Scheme and anyapproved amendments (Planning & Environment Act1987, Section 41)

■ A register of planning permit applications, decisions anddeterminations (Planning & Environment Act 1983,Section 49)

■ A register of Section 173 Agreements entered into bythe municipality under the Planning and EnvironmentAct 1987 (section 179).

■ Details of Registrations under the Health Act 1958(Section 371)

■ Details of Registrations under the Food Act 1984(Section 43)

■ The Annual report on the operation of the Freedom ofInformation Act 1982, (s 65AA);

■ Whistleblowers Act Policy & Procedures (Section 70).


Public Information


O B J E C T I V E

Banyule City Council Corporate GovernancePublic Information

Freedom of Information

The Freedom of Information Act (FOI) 1982 gives thecommunity a legal right to access certain Councildocuments. The Banyule Council is subject to the FOI Actand responds to requests directly related to its operations.During the year, Council received 15 FOI requests.

The FOI Act has four basic principles:

1. The public has a legal right of access to information.

2. Local governments are required to publish informationconcerning the documents they hold.

3. People may request that inaccurate, incomplete, out-of-date or misleading information in their personal recordsbe amended.

4. People may appeal against a decision not to give accessto the information or not to amend a personal record.

Accessing FOI Information

Requests to access FOI information must be in writing andaccompanied by an application. Applicants should specifythe documents they are seeking to access. Documentsthat contain personal private information about anindividual may be exempt.

On receipt of a request, a decision must be made within45 days. Where a decision is made to refuse or deferaccess, the applicant will be notified in writing of thereasons for the refusal and the procedures available toappeal the decision.

Enquiries regarding Freedom of Information can be madeby phone on (03) 9490 4222.

Whistleblowers Protection Act 2001

This Act came into operation on 1 January 2002 andapplies to all public bodies including Banyule Council.Thepurpose of the Act is:

a) to facilitate disclosures of improper conduct by publicofficers and public bodies;

b) to provide protection for:

(i) persons who make those disclosures; and

(ii) persons who may suffer reprisals in relation tothose disclosures;

c) to provide for the matters disclosed to be properlyinvestigated and dealt with.

There have been no Whistleblower disclosures made toCouncil during the last year.

Information Privacy Act 2000

The Information Privacy Act 2000 came into effect on 1September 2001 and establishes a regime for theresponsible collection and handling of personal informationin the Victorian public sector. The Act contains tenprinciples for the collection, use and dissemination ofpersonal information about an individual. It incorporatessafeguards for activities such as collection, storage, access,transmission, disclosure, use and disposal of personalinformation.

No Breach of Privacy complaints were received during thelast year.

Local Laws

Council’s existing Local Laws were replaced on 22 April2005 when two new Local Laws came into operation.These Local Laws are:

■ General Local Law No 1 which regulates and controlsactivities and behaviour on public land; and

■ Conduct of Meetings Local Law 2, which regulates theconduct of Council meetings and use of the CommonSeal.

The Council also adopted a related Meeting ProceduresCode, which details how meetings would be run and whatmatters would be considered at those meetings.

35


National Competition Policy Compliance2006/07

Certification by Chief Executive Officer

Banyule City Council has complied with the requirementsof the Local Government Improvement Incentive Programin respect of:-• National Competition Policy (in accordance with

National Competition Policy and Local Government – A Revised Statement of Victorian Government Policy (January 2002));

for the financial year 2006/07 as set out below:

A.Trade Practices Compliance

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

B. Local Laws Compliance

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

C. Competitive Neutrality Compliance

State whether the Council is compliant or non-compliant for all significant businesses.If non-compliant, justify or cite actions to redress.

Compliant

Council has fully complied with national Trade Practiceslegislation. It continues to promote behaviour thatcomplies with the Competition Code.

Compliant

Council remains fully compliant with respect to LocalLaws.

Compliant

Council has complied with competitive neutralityrequirements for all of its significant businesses. Councilhas identified four “significant businesses” as defined by theCompetitive Neutrality Policy Victoria 2000.

I certify that:

a) this statement has been prepared in accordance withthe 2006/07 Local Government Improvement IncentiveProgram guidelines issued in August 2006 for reportingon the following criterion :- National CompetitionPolicy in accordance with National Competition Policy andLocal Government – A Revised Statement of VictorianGovernment Policy (January 2002); and

b) this statement presents fairly the Council’simplementation of the National Competition Policy.

Chief Executive Officer

Dated: Monday, 17th September 2007


EconomicDevelopment

O B J E C T I V E


The Organisation

37

Banyule City Council The Organisation

The Structure

Chief Executive OfficerDoug Owens

Director Corporate ServicesKeith Yeo

ManagerFinancial ServicesMatthew Tibb> Financial & Management Accounting> Revenue Collection> Payroll> Purchasing

ManagerBusiness ImprovementVacant> Customer Service> Occupational Health & Safety/Risk Management> Business Services> Corporate Planning> Best Value Program

CommunicationsCo-ordinatorTrish Hosking> Publications> Banner> Market Research> Public Relations> Marketing

Director Community ProgramsSauro Antonelli

ManagerHealth & Aged ServicesDarnelle Eckersall> Home & Community Care> Environmental Health> Immunisation

Manager Leisure,Recreation & Cultural ServicesPeter Utri> Arts & Cultural Services> Leisure Services> Leisure Facilities> Library Services> Social Planning

ManagerYouth & Family ServicesJulie Salomon> Children’s Services> Family Support Services> Youth Services

DirectorCity DevelopmentSimon McMillan

Manager Administration & LawsJanet Davis> Administration & Governance> Municipal Laws> Records Management> Cemetery

ManagerDevelopment ServicesScott Walker> Statutory Planning & Enforcement> Engineering Design> Traffic> Building Services

Manager Strategic & Economic DevelopmentVincent Ryan> Economic Development & Business Liaison> Environmental Planning> Strategic Planning> Valuation> Infrastructure Assets Management> Property Management> GIS

Director City ServicesRamesh Choudari

ManagerMajor Projects & InfrastructureArun Chopra> Construction Management> Road & Infrastructure Maintenance> Commercial Drain Cleaning

ManagerOperationsVacant> Environmental Waste Management> Depot, Plant, Fleet Management> Emergency Management> Cleansing

ManagerHuman ResourcesKath Baylie> HR Management> Training & Development> Recruitment

ManagerInformation TechnologyMasum Rashid> Development Services> Operational Services

ManagerParks & GardensPeter Benazic> Building Maintenance> Parks Maintenance> Horticultural Services> Bushland, Rivers & Creeks


Banyule City Council The Organisation

Human Resources

1. ORGANISATIONAL DEVELOPMENT ANDCULTURE AT BANYULE

One of the roles of Human Resources Business Unit is tolead the growth and development of Banyule as anintegrated high performance organisation through fosteringa constructive, supportive, highly effective and achievementfocussed culture.

In the first six months of this year, individual teams wereencouraged to explore their culture and develop culturaltransformation strategies. A follow up promotion to the“Bluey” campaign in 05/06 was used to encourage teamsto discuss their individual team culture. “Explorer Bluey”screen savers and posters were launched after the OCIresults had been distributed across departments.

1.1 Culture Workshops

In progressing “Culture” at Banyule, teams have beensupported to develop a number of “local” initiatives andactivities. HR has supported many teams, working inpartnership with managers and coordinators to buildculture into their annual objectives.

• A leadership program designed to support the seniormanagement team in understanding the impact ofleadership styles was completed.

• A training workshop for coordinators and team leadersto provide practical tools to work with teams has beenconducted.

• A summary report highlighting the workshop outcomesacross all work areas was presented to managers,coordinators and members of the CAT to generatefurther discussion about future initiatives.

1.2 Staff Christmas Break-up Party

A working group was established to review and improvethe format for the annual staff Christmas party. The re-vamped event with light entertainment and a change invenue and menu was highly successful in engaging staff infun activities and rewarding staff for their efforts for theyear.

2. CORPORATE INDUCTION

A working group consisting of representatives from acrossthe corporate support services reviewed the corporateinduction process, using a focus group of recently inductedstaff to inform the outcomes of the review. Keyimprovements were made to the Corporate InductionSession and a New Employee Orientation Template was

developed to improve the orientation of staff into the keycorporate knowledge competencies required by certainpositions.

3. WORKCOVER

Strategies to ensure early intervention and timely returnto work practices have been developed. These strategieshave resulted in the Workcover premium and total claimscosts decreasing. Functional Capacity Assessments specificto new staff have also been implemented.

4. AWARD AND RECOGNITION EVENTS

Awards to acknowledge individual staff or teams forsignificant work performance and achievements werepresented throughout the year. Awards were presented incategories based on each of the values contained in“Working Together Working Better’’.They are:

• Put the customer first• Respect and support each other• Innovate and deliver best value• Are always accountable• Communicate effectively• Work together with the community

5. HEALTH AND WELLBEING

Throughout 2006/07, a number of actions were completedin relation to enhancing the health and wellbeing of theBanyule workforce. Specific actions completed included:

• Support to the Risk Management Team in thedevelopment and promotion of the annual Health &Wellbeing Month that was run in October 2006.

• Individual sessions with a focus on health & wellbeingwere made available to staff under the CorporateTraining Calendar throughout the beginning of 2007.

• Implementation of pre-employment functional capacityexaminations for potential home care workers.

• Staff engagement promotion was run to encourage staffto participate in a staff engagement survey and alsorecruit interested staff into an informal working groupset up to support ongoing fun and engaging activities forstaff. Hence, the “gelin” group (Getting EmployeesLinked In” was launched in December 2007.

6. COMPETENCY ASSESSMENT AND TRAINING

Centralisation of training records – now have Training

39

Banyule City Council The OrganisationHuman Resources

Champions across Council to support getting all trainingrecords to HR to record on central database.

A Project Plan was developed to progress a competencyframework, where all position descriptions will have KeySelection Criteria / Competencies listed that will informongoing staff learning & development needs and identifycompetency gaps.

7. HUMAN RESOURCE INFORMATIONMANAGEMENT SYSTEM

In partnership with IT Department - research into HRISsolutions and decision made to progress.

8. WORKFORCE PLANNING

Workforce Action Plan delivered to inform planningprocess to be aligned with Organisation Performance Plan.

9. RECRUITMENT

A total of 139 new employees commenced workthroughout the year. This included 32 full-time, 34 part-time and 73 casual.

10. WORK EXPERIENCE

Council is committed to providing work experience forstudents and has had 44 placements in various businessunits.

11. CORPORATE TRAINING PROGRAM

An extensive Corporate Training Program was offered toall staff across Banyule, based on a training needs analysiscarried out in late 2006.

17 training day sessions were delivered using variousexternal training providers under the following:

• Leadership • Communication and Interpersonal Skills• Technical Skills• Health & Wellbeing

12. LEGISLATIVE REQUIREMENTS

The Working With Children Guidelines were developedand implemented to ensure that the requirements of theVictorian Government’s Working With Children Act 2005are met.

13. INDUSTRIAL RELATIONS

There was no industrial action reported in this 12 monthperiod.

14. BANYULE COUNCIL’S CONSULTATIVECOMMITTEE

Council's Consultative Committee meets approximatelyevery three months to discuss industrial and relevantorganisational policy issues for staff.The Committeecomprises staff union representatives, union industrialofficers and management representatives.

The Committee’s role is to consider and resolve issuesand measures, raised by management, staff or unions.Theultimate aim is to improve the efficiency, productivity andcompetitiveness of the organisation.

Staff Profile

City Development Female Male TotalAdministration & Laws 7 2 9Building 3 12 15Cemeteries 2 2Conservation 3 3 6Development Planning 9 10 19Development Services 1 1Economic Development 1 1 2Engineering 3 12 15Environmental Planning Waterwatch Program 2 2Executive 1 1 2GIS 1 1Infrastructure Assets 1 3 4Municipal Laws 7 10 17Property Management 3 3Records 6 1 7School Crossing Supervisors 41 23 64Strategic & Economic Development 3 1 4Strategic Planning 5 3 8Travel Smart Project 1 1Valuations 2 2 4Water Conservation 1 1

City Development Total 100 87 187



Staff Profile (continued)

City Services Female Male TotalBuilding Maintenance & Services 1 4 5Buildings Management 1 1Cleansing 20 20Cleansing - Transfer Station 4 4Commercial Drain Cleaning 2 2Darebin Creek Maintenance 1 1 2Depot Stores & Plant 5 5Executive 1 1 2Horticultural Services 1 23 24Human Resources 5 1 6Information Technology 5 5 10Infrastructure Maintenance 13 13Major Roads & Projects 1 1Mechanics 4 4Northern Waterways 3 5 8Nursery 1 1Operations Management 3 2 5Parks & Buildings 1 1Parks Maintenance Services 1 28 29Parks Management 2 3 5Parks Stores Management 1 1Recreation Strategy 1 1Recycling 6 1 7Roads & Drains Management 2 5 7Tree Care 8 8Waste Management 19 19

City Services Total 31 160 191

Corporate Services Female Male TotalAccounting Services 9 5 14Business Improvement 2 4 6Communications 5 1 6Customer Service 18 3 21Executive 1 1 2Organisational Performance 1 1Revenue Services 8 1 9Risk Management 4 1 5Corporate Services Total 47 17 64

Executive Services Female Male TotalExecutive Services 1 1 2Executive Services Total 1 1 2

Staff Profile (continued)

Community Programs Female Male TotalAccess & Integration 2 2Community Liaison 1 1Delivered Meals 24 10 34Employment Strategy 4 5 9Environmental Health 20 4 24Executive 1 1 2Family & Children's Services 3 3Family Day Care 5 5Functions 5 5Graffiti Project 1 1HACC Admin 18 1 19Health & Aged 1 1Holiday Activities 1 5 6Home Care 1 1Home Care Property Maintenance 1 1Home Care Worker 73 3 76Ivanhoe Aquatics Centre 102 54 156Jets Studio 3 3Joyce Ave Child Care Centre 17 3 20Leisure Rec & Culture 2 2Leisure Services 13 3 16Link U 10 4 14Maternal Child Health Nurse 17 17MCH Outreach Worker 3 3Metro Access 1 1Morobe Street Child Care Centre 17 17Olympic Leisure Centre 8 5 13PAG 12 1 13PAG Assisted Transport 4 4Pre Schools 12 12Relieving Maternal Child Health Nurse 13 13Safer Cities 1 1Specialist Children's Worker 2 1 3St Hellier Child Care Centre 15 15Strategic Planning 1 1Workforce Development 1 1Youth & Family 1 1Youth & Family Services 4 4Youth Services 12 5 17

Community Programs Total 422 115 537

41


Staff Analysis

City Development 19%

City Services 19%

Community Programs 55%

Corporate Services 7%

Executive Services 0%

Total staff - 981

Male 39%

Female 61%

Total staff - 981

Childrens Services 1%

Customer Service 1%

Home Care 1%

Indoor 51%

Outdoor 37%

MCH Nurses 0%

Management 3%

School Crossing 6%

Total male staff - 380

Casual 11%

Full Time 65%

Part Time 24%

Total male staff - 380

Casual 15%

Full Time 23%

Part Time 62%

Total female staff - 601

Total staff numbers bydirectorate as at 30 June 2007

Male employees by occupationas at 30 June 2007

Childrens Services 12%

Customer Service 3%

Home Care 12%

Indoor 59%

Outdoor 1%

MCH Nurses 5%

Management 1%

School Crossing 7%

Total female staff - 601

Female employees byoccupation as at 30 June 2007

Male and Female employeesas at 30 June 2007

Male employees by employmenttype as at 30 June 2007

Female employees by employmenttype as at 30 June 2007



A Summary of Our Performance

43

Banyule City Council A Summary of Our Performance

Banyule’s Achievements

These achievements reflectthe intent of the Key Actionsas set out under the fiveobjectives in Banyule’s CityPlan 2006-2010.

COMMUNITY DEVELOPMENT &SUPPORT

Objective: Foster the community spirit, socialhealth and wellbeing within Banyule.

Council plays a leading role in planning and deliveringservices and facilities to the Banyule community.Theseservices and facilities may be delivered to thecommunity by Council, by other communityorganisations and agencies, or through a variety ofpartnership arrangements or alliances. In addition,Council has an active role in the funding and co-ordination of community initiatives and events and inadvocating to other tiers of government to addresscommunity needs.

Achievements:

Health and Aged Care

■ 40 new food businesses opened in 2006 (total of775 registered food businesses).

■ Introduction of Human Papillomavirus vaccine intothe National Immunisation Schedule implemented.

■ Immunisation coverage level achieved over 90%coverage rate, consistently higher than the Stateaverage.

■ 233 site inspections of Health Act Registeredpremises were carried out in 2006. 16 new HealthAct Registered premises opened in 2006.

■ Implemented education program of licensedpremises’ proprietors regarding tobacco legislationchanges introduced from 1 July 2007 that banssmoking in all licensed premises.

■ Ongoing participation in the Regional Food Kitchenproject, which has 11 councils, including Banyule CityCouncil, signed up to form RFK Pty Ltd.

■ Ongoing development within Cultural EquityGateways Strategy (CEGS) ensuring HACC servicesare accessible and inclusive of the CALD community.Additional brochures have been translated andinformation in additional languages has beencompleted.

■ Surveys of client target group found an increase incustomer satisfaction across all areas within HACC.

Community Planning

■ Completed consultation processes and compiled ActiveAgeing Policy and Strategic Plan for submission toCouncil July, 2007.

■ Developed an Inclusion Policy for Council to embracepeople with a disability, people from linguistically andculturally diverse backgrounds and indigenous residents.

■ Commenced consultation and policy review processesfor a review of the Disability Policy and action plan for2007-2010.

■ Consulted with ethnic leaders and communities inpartnership with North East Migrant Resource Centreand developed the Community Voices Action Plan.

■ Commenced the “Access Greensborough” project forfeedback for activity centre planning using older peoplein walking audits.

■ Presented a report on Banyule’s Community Prioritiesand participated in the development of CommunityIndicators with Department of Victorian Communities.

■ Developed a model for Council for an on-lineinformation library to be implemented in 2007/08.

■ Developed a Consultation and Community Engagementframework for Council for implementation in 2007/08.

■ Participated as a member of the Steering Committee ofthe Heidelberg West Neighbourhood Renewal projectas well as on working groups for health and planning fora community garden.

■ Contributed a community planning perspective toHeidelberg, Ivanhoe, and the Mall structure planningprocesses.

■ Participated actively in the Project Steering Group aspart of the Greensborough Activity Centre Planningprocesses and coordinated community planningperspectives.

Leisure and Culture

■ Gym membership at the Olympic Leisure Centre hasbeen at record high levels this year. The year began withmembership at 321 members and is finishing thefinancial year at 410.

■ The Centre’s personal training program has grownsignificantly this financial year. This year the centreconducted 2,015 training sessions compared to 1,725the previous year.

■ The Netball Stadium this year has had even more peopleparticipate in netball than in any other year in its shorthistory. The resident associations have more teams thanever for their netball competitions particulary at ajunior level and this is reflected in their increase ofcourt hire.

■ The netball stadium is now hosting one of the largestmen’s netball competitions in the State. Thecompetition operates on Sunday evenings and has over20 teams.

■ Successfully obtained funding from the Department forVictorian Communities through Sport and RecreationVictoria Facilities funding to undertake a lighting projectat Binnak Reserve and an upgrade to cricket practicenets at Montmorency Reserve.

■ Implemented Stage One works of the Malahang ReserveMaster plan.

■ Coordinated the successful implementation of Council’sevent calendar including Banyule Festival with the KidsArtyfarty Fest and Twilight Sounds at Sills Bendattracting over 20,000 people; Manna Gum Festivalattracting 5,000 people and Carols launching the annualBoulevard lights attracting over 75,000 over the twoweek period.

■ Developed and launched a Neighbourhood Street PartyKit to encourage residents to celebrate and connectwith their neighbours.

■ Developed and implemented a new Sporting Club UserGuide across all users of Council’s sporting reserves.The new document highlights a reward and demeritpoint system to assist in the management of clubs.

■ Successfully managed the use of our sporting reservesin relation to the drought conditions faced by Victoriaand the introduction of Stage Three water restrictions,to ensure that Council assets are protected and sportin the region was maintained.

Youth and Family Services

■ Preschool Teacher at Audrey Brooks was recognised ata national level receiving an award for teachingexcellence.This award acknowledged the fantastic workundertaken by the teacher to ensure that every childattending the centre is valued for their individuality anddiversity.The teacher also ensures that each child hasaccess to a nutritious breakfast at the start of each daybefore learning.


Banyule City Council A Summary of Our PerformanceBanyule’s Achievements

■ Banyule sponsored a very successful Family Day CareConference to provide Careproviders living in Banyulewith the opportunity to participate in a regionalprofessional development program.

■ The “West Heidelberg Everyday Living and Learning”(WHELL) project is now entering its third year.Thisproject has well established playgroups with growingnumbers and is increasing its focus on early literacy,educational and employment options for parents.Council continues to support this project in partnershipwith Phillip’s Gate Anglican Parish.

■ Council’s Family Day Care Service, St Hellier Street andJoyce Avenue Childcare Centres received Accreditationat the highest level by the Commonwealth NationalChildcare Accreditation Council.This ensures thatBanyule families can continue to receive theCommonwealth Childcare Benefit.

■ Early Childhood Services and Maternal Child Healthhave worked collaboratively to strengthen innovativeparent education programs in Banyule.This hasculminated in extended “Toddler Support” programsand the commencement of “Triple P” Parenting Programfor the first time in Banyule.

■ Developed the Youth Services Future DirectionsDiscussion Paper for the restructure of Youth Services.This resulted in the creation of three Local AreaDevelopment officers to service the south, central andnorthern areas of the municipality and the establishmentof key strategic portfolios.

■ Coordinated a successful 2006 North Western Skateand BMX Series on behalf of 12 local government areas.Negotiated the coordination role to be transferred tothe YMCA Melbourne for future series.

ENVIRONMENTAL MANAGEMENT

Objective: Conduct all Council activities in asustainable manner and manage the naturalenvironment to ensure its diversity and wellbeingfor present and future generations.

Banyule’s bushland, waterways and parklands support adiversity of plants and wildlife many of which are of highconservation significance, but which are under threat fromdevelopment, weeds and pest animals. Our communityhighly values these natural areas and is very conscious ofother broader environmental concerns including pollutionand the waste of resources.This reflects a growingrecognition of the need to live sustainably.

Achievements:

Environmental Management

■ Continued with the development and implementation ofthe Water Conservation Strategy, Greenhouse ActionStrategy,Wildlife Corridor Program and WaterwatchProgram.

■ Creation of the Beverley Road Wetland,WarringalParklands and finalist for this project in the 2007 CityPride awards for Stormwater treatment under the titleCommunity and Government partnership

■ All Corridors of Green Projects completed for2006/2007 on budget and on time: Banyule SwampRestoration Project, Plenty River – Yallambie Park Stage6, Reedy Billabong Revegetation Project Stage 2 andMandell Reserve Riparian Restoration Project – DarebinCreek.

■ Weed Implementation Strategy – continued weedcontrol activities in priority bushland reserves andadjacent to private land in conjunction with various landcare groups and private landowners: Plenty River,Browns Reserve, Rosanna Parklands and Banyule Flats.

■ Provided ongoing support of environmental friendsgroups, local schools’ weeding days and communityplanting days.Total volunteer working hours 1600, totalvolunteers 950 and total number of trees planted for2006/2007 was 37,852.

Neighbourhood

■ Purchased a new sweeper which, based on regenerativeair principle, allows for a wider sweep width and morefuel efficient operation.

■ Continued to implement the street litter bin upgradeand replacement program to help reduce litter andminimise manual handling hazards.

■ Worked with Leisure and Culture in consultation withthe sporting clubs to manage Council’s sporting surfacesthrough the drought. Participated in a forum to educateclubs on ground usage and water issues.

■ Redirected maintenance to resources into numerousdrought related activities.These included supplementarywater for street and park tree, mulching programs etc.

45



LOCAL AMENITY AND BUILT ENVIRONMENTMANAGEMENT

Objective: Manage our built environment to achievebetter places, transport and infrastructure whileprotecting and enhancing Banyule’s valuedcharacteristics.

In an environment of change, Banyule continues to workwith the community to:

■ deliver appropriate and beneficial land use anddevelopment outcomes for the city

■ plan for better places, transport and infrastructure

■ recognise and value Banyule’s rich heritage andneighbourhood character

■ foster a sustainable approach to ongoing assetmanagement

■ enhance the local amenity of Banyule neighbourhoods

■ support and facilitate an integrated transport strategythat anticipates local and regional needs

Achievements:

Infrastructure

■ Coordinated the consultation, planning and detaileddesign phase (including preparation of contractspecifications and evaluation of tenders) for the followingmajor projects: Plenty River Shared Trail; Darebin CreekShared Trail and Bridge Stage 2; Malahang ReserveEarthworks and Pathways;Yallambie Road TrafficTreatment; Bolton Street Footpath.

■ Implemented Council’s corporate project managementprocess for several major projects to improve projectplanning from the initial concept stage through to finalproject construction.

■ Actively promoted the operation of the 50km/h speedlimit in local residential streets through the placing ofCouncil’s speed trailer in streets where complaints havebeen received, and installing reminder 50km/h signs inselected high volume streets.The team was also involvedin reviewing the operation of the 40km/h school speedzones.

■ Achieved good (above average) customer satisfactionresults for the “Local Roads and Footpaths” category andthe “Traffic Management and Parking Facilities” categoryunder the State Government’s Customer Satisfactionsurvey of metropolitan councils.

■ Building Control Service has recorded another successfulyear in terms of inspections conducted and the numberof building permits issued, for a range of sites acrossVictoria with a record of over 4,000. This has translatedinto good levels of revenue from external sources forthis service.

■ Continued to implement the BPi Business Plan to guidethe future direction of the permit and inspections serviceover the next five years.

■ Completed the installation of 119 bus shelters, includingbest practice disability access and solar-powered non-advertising shelters across the City.

Planning

■ 950 planning applications were lodged for the financialyear.

■ Successfully undertook the Planning Scheme Amendment(Amendment C51) which incorporates theGreensborough Planning Framework into the BanyulePlanning Scheme.

■ Assisted in key strategic work including the structureplanning process for the Heidelberg and Ivanhoe MajorActivity Centres and the Housing Strategy.

■ Commenced the development of a Housing Strategy andreview of the Neighbourhood Character Strategy.

■ Commenced the process to develop a concept plan forthe first stage of the potential redevelopment of the BellStreet Mall, including a possible library facility.

■ Maintained a stable work team with a positive workingrelationship and output including increased CSI rating fortown planning and improved communications betweendepartments.

■ Assisted in the preparation of a ‘Building Site Code ofPractice’ and guidelines for improved tree protectionduring construction.

■ Led the Metropolitan Transport Forum’s development ofa public transport plan for the north-east of Melbourne.

■ Finalised the planning framework for the GreensboroughProject and received Planning Panel support.

■ Commenced statutory procedures for thediscontinuance of roads and sale of land to implementthe Greensborough Project.

■ Implemented a formal process for the review of planninginfringements where there have been planning breaches.


47

ECONOMIC DEVELOPMENT

Objective: Support the development of a thrivingand sustainable local economy that will contributeto prosperity for Banyule and its people.

Banyule has a strong, established network of retail,manufacturing, service educational and health industries. Inaddition, there are a growing number of new and homebased businesses. By assisting these entities with newopportunities, resources and knowledge, Banyule can helpbuild on their success and facilitate their continuedcontribution to the social and economic wellbeing of thecommunity.

Achievements:

Shopping Centre and Streetscape Improvements

■ Reviewed and renewed funding agreements associatedwith the implementation of Special Rate and Chargeschemes including Business Plans for Heidelberg,Eaglemont, Montmorency,Watsonia, Macleod andGreensborough shopping centres.

■ Administered 11 successful Special Rate and ChargeSchemes in The Bell Street Mall, Eaglemont Village, EastIvanhoe Village, Greensborough Town Centre,Heidelberg Central, Ivanhoe Shopping Centre, LowerPlenty Shopping Centre, Montmorency Village, MacleodVillage, Rosanna Village,Watsonia Shopping Centre.

Business Development

■ Council hosted and sponsored 23 events throughoutthe last financial year with approximately 932 attendees.The programs and workshops delivered includedbusiness breakfasts, taxation related workshops, groupprograms, e-business, finance, starting a business andlegislative reform workshops (IR).

■ The unemployment rate for Banyule in the financial year2006/07 was 3.1%.

■ The total number of new business commencements inBanyule during 2006/07 was 2705.

LEADERSHIP & MANAGEMENT

Objective: Provide responsive and accountableleadership, representation and management onbehalf of the community.

In order to achieve our objectives for the community,Banyule is committed to providing outstanding leadership,advocacy and accountability. Our operations are based onresponsible management, compliance with legislation andthe Best Value Principles, and a strong focus on customerservice and continuous improvement. Council values itsstaff and recognises the integral role staff play in theprovision of Best Value services to our community.

Achievements:

Governance and Advocacy

■ 21 Ordinary Meetings and six Special Meetings ofCouncil were held. Agendas & Minutes were madeavailable on the Council website in PDF formatconsiderably reducing the need for paper copies andresulting in cost savings to Council.

■ Five Citizenship Ceremonies were held this year withover 400 Banyule residents becoming Australian Citizensfrom a variety of nationalities/countries, including anAustralia Day Citizenship Ceremony with Jeff (Coxy)Cox as Banyule’s Australia Day ambassador.

■ Processed 15 Freedom of Information requests. Twointernal reviews were requested with both originaldecisions confirmed.

■ Review of municipal boundaries conducted by theVictoria Electoral Commission that resulted in arecommendation to retain the status quo of 7 singleCouncillor Wards with minor boundary changes.

■ Continued research phase of Best PracticeRecordkeeping@Banyule Project by conducting auditsof departmental records to determine how they arecreated, captured and managed.

■ Renewed Car Parking Enforcement Agreements andestablished new agreements for Austin Hospital andBeacon Lighting.

■ Instigated a new process for prosecuting infringementsin the Magistrates Court bypassing the PERIN Court.This is a cost saving to Council and increases therevenue to Council with additional service charges andbetter collection results. More people are willing to paytheir infringements rather than appear in Court andhave a warrant issued against them for failing to pay.



■ Held Open Day to celebrate 70th Anniversary of theopening of the Heidelberg Town Hall. Over 150members of the public attended to view a photographicdisplay of historic images or attended a free tour.

Customer Service and Communications

■ Developed and implemented ‘Banyule Central’(corporate Intranet) to manage corporate informationacross the organisation, share knowledge and enhancecross organisational communication.

■ Redeveloped Banyule’s corporate website with newcontent management system to improve usability forweb writers and new graphical design elements tomaintain a contemporary site resulting in a 51% increasein site visits.

■ Developed Corporate Communications Strategy toidentify communication priorities, tools and processesto enhance Council’s proactive approach tocommunication with our community including a CALDCommunications Strategy in response to theCommunity Voices Project.

■ Developed and implemented branding andcommunications plans for Winter in Banyule, the 9 x 5Quality Makers Market and Boomers and Beyond Over50’s Lifestyle Expo.

■ Introduced a new Customer Request Managementsystem that will allow Council to deliver Above andBeyond Customer Service into the future.The newsystem will allow Council to further fine-tune its servicedelivery to ensure that Council continues to deliverservice expeditiously and at the lowest cost to thecommunity.This new system will also allow Council tobetter cover its legislative requirements in relation toasset maintenance.

■ The Customer Service team continued its Out andAbout program at festivals, events and other communityfunctions during the year.The Out and About programcontinues to expand with visits to schools andcommunity groups throughout the year.

Business Improvement

■ Developed Records Management Strategic Plan toaddress long-term issues.

■ Reviewed Council’s Corporate Induction Program,leading to overall improvements to induction session,new guidelines and a new tool to support supervisors indelivering job specific induction.

■ Successfully delivered a corporate training calendarresponding to an organisation wide need coveringleadership, technical skills, communication/interpersonaland health and wellbeing.

■ Continued the implementation of Project Conquest.Significant advances made in the implementation ofvarious components of this multifaceted project.Highlights include a Council wide Customer RequestManagement System (CRM) rolled out to 16 businessareas; Stage 1 of an integrated Asset System (AIM) to berolled out to five asset categories and the introductionof online payslips (ePayslips).

■ Inclusion of the Olympic Leisure Centre and RosannaMaternal & Child Health Centre into our wide areanetwork. Upgrade of the existing wide area networklinks to the Operations Centre and the Parks Depot.

■ Completed the review of Council’s budgeting systemand subsequently purchased and implementedPowerBudget software that was then used to compilethe 2007/08 budget instead of Excel.This software hasalso been used for financial reporting purposes insteadof the Purple Octopus system.

■ Implemented ePayslips across those areas of theorganisation that have regular access to computers.Thishas made the production of paper payslips and theirdistribution a redundant task for many of theemployees.

■ Continued to support and facilitate Council’s tenderingand contract process, including: Refurbishment of theTransfer Station (Material Recovery Facility), IvanhoeAquatic Pool Concourse, Darebin Trail (Stage 2),Macleod Pavilion Extensions and Modifications,YMCAMacleod Internal Alterations, Banyule RecreationStrategy, Installation of Roof Access Equipment forCouncil Facilities (Stage 2), and Annual Supply/ServiceContracts (eg. Civil Works, Concrete Paving and Kerb &Channel,Asphalt & Spray Aggregate Sealing, CleaningServices, Legal and Architectural Services).


49

■ Further developed management of Council contractingand related systems including implementation ofPurchasing & Contract Management Policy andGuidelines, assistance with training, and improvementsto in-house Registrations systems.

■ Led, facilitated or supported a range of organisationalprojects, including Organisational Culture activities,Greenedge (GPAC), and the valuable Integrated PlanningGroup to facilitate cross organisational communicationand consultation, enhanced forward planning acrossBanyule and strengthening key work at the developmentphase.

■ Provided corporate support to establish and assist thewide-ranging Neighbourhood Renewal Program.

■ Co-ordinated and supported the integrated AnnualPlanning Program, involving CIP planning sessions,consultation with staff and Annual Planning Day, resultingin an Annual Business Plan for 2007-08 with strongalignment to the City Plan framework.Also assistedservice units with their Annual Reporting and Planningprocesses.

■ Worked together with the Community Planning Unitand Northern Migrant Resource centre on theCommunity Voices Project, a CALD (Culturally andLinguistically Diverse) Consultation project tostrengthen understanding of the needs of CALDcommunities within Banyule.

■ Completed a major review of the Fleet Policy andGuidelines to reflect the Motor Vehicle Safety Strategy,strengthen driver responsibilities and highlight Council’scommitment to managing an environmentally friendlyand cost effective fleet.

■ Completed the final stage of the Workshoprefurbishment and upgrade (mezzanine level spare partsstore) to improve operational efficiencies.

Risk Management:

■ Decrease in the Workcover premium and FunctionalCapacity Assessments for new HACC staffimplemented. Early intervention strategy by in-housephysiotherapist for injured workers.

■ The total number of public liability claims received hasdecreased by 25%.This is partially due to thecollaborative work with our external claimsadministrator, Echelon, and the reports provided by RiskManagement to relevant service units to advise of areasto focus upon for improved prevention andmanagement.

■ Council’s final score for the annual public liability audit(proactive risk management) conducted by our Insurer,CMP increased to 92%; placing Banyule in the top five(of 78) Victorian councils.

■ Motor vehicle collision statistics show a 50% reductionin costs to Council arising from motor vehicle repairs.

■ The total amount paid for insurance renewals was$164,013.42 (incl. GST) lower for 2007/08, compared tothe 2006/07 renewals, with Council’s insurance coveragain enhanced.



Banyule’s four-year strategic indicators arecontained in the Council’s City Plan 2006-10. Theseindicators measure achievements against Council’sstrategic objectives over the four years of the CityPlan.The strategic indicators include a mix of:

■ Community Wellbeing Indicators (CWI) thatmeasure the community’s attitude towards orperception of a mix of social, economic, culturaland environmental factors that contribute to asafe, healthy and active community in Banyule.These were measured in the CommunityWellbeing survey undertaken in May 2005.

■ Community Satisfaction Indices (CSI) measuredby the State Government in their annual surveyof Local Governments in Victoria undertaken inMarch 2007.

■ Quantitative indicators measured by Council andother agencies that are indicative of communitywellbeing.

Together these indicators are a valuable tool to helptrack the achievement of the long-term objectivesof Council and the Banyule community.


Banyule’s Four-Year Strategic Indicators

51

RESULTS FOR THE YEAR ENDED 30 JUNE 2007 Actual ActualResults Results

2006/07 2005/06

1. Community Development and Support

1A Community Wellbeing Indicator (CWI) for community spirit, social health and wellbeing in Banyule 79* 79*

1B Community Satisfaction Index rating for Health and Human Services 75 74

1C Community Satisfaction Index rating for Recreational Facilities 75 74

2. Environmental Management

2A CWI for the management of the natural environment 79* 79*

2B Community Satisfaction Index rating for Environmental Management 74** 7061**

69**

2C Percentage of waste diverted from landfill 52.9%*** 54.3%

3. Local Amenity and Built Environment Management

3A CWI for the character and local amenity of Banyule 78* 78*

3B Community Satisfaction Index rating for Appearance of Public Areas 69 68

3C Community Satisfaction Index rating for Local Roads and Footpaths 66 62

3D Community Satisfaction Index rating for Town Planning Policy and Approvals 62 59

4. Economic Development

4A CWI for the development of the local economy 79* 79*

4B Community Satisfaction Index rating for Economic Development 67 66

4C Number of New Business Commencements in Banyule Source: Australian Business Register - (Australian Taxation Office) 2705 2684

4D Unemployment RateSource: Small Area Labour Markets - (Department of Employment and Workforce Relations) Smoothed data 3.1% 3.7%

5. Leadership and Management

5A CWI for community representation, leadership and management 75* 75*

5B Community Satisfaction Index rating for overall performance generally of the Council 71 68

5C Community Satisfaction Index rating for Council’s interaction and responsiveness in dealing with the public 80 81

5D Community Satisfaction Index rating for Council’s engagement in decision making (ie. consultation and partnership) on key local issues 65 62

* The Community wellbeing indicators are due for review. Previous results have been utilised whilst awaiting outcomes of a State widecommunity wellbeing indicators review.

** The CSI question on environment has been split to form three more specific responses for future reference (refer Banyule’s KeyStrategic Activities in the Performance Statement).

*** Drought has reduced green waste diversion quantities by 14% affecting the overall result down all other diversion categories increased.

Banyule City Council Banyule’s Four-Year Strategic Indicators


2006/07 2005/06Actual Actual

All Rates

1 Average rates and charges per assessment $958.42 $893.00

Residential Rates

2 Average rates and charges per residential assessment $892.21 $860.00

Debts

3 Average liabilities per assessment $230.40 $204.00

Operating Result

4 Operating result per assessment $0.51 -$55.00

Operating Costs

5 Average operating expenditure per assessment $1,696.50 $1,710.00

Overall Performance

6 Community Satisfaction Rating – Overall 71 68

Capital Expenditure

7 Average capital expenditure per assessment $197.98 $198.00

Infrastructure

8 Renewal 0.44:1 0.18:19 Renewal and Maintenance 0.72:1 0.60:1

Advocacy

10 Community Satisfaction Rating for Council’s Advocacy and Community Representation on Key Local Issues 69 64

Engagement

11 Community Satisfaction Rating for Council’s Engagements in Decision Making on Key Local Issues 65 62


Victorian Local Government Indicators

53

Banyule City Council Victorian Local Government Indicators

Category Indicators Indicator Definitions

1 All Rates

2 Residential Rates

3 Debts

4 Operating Result

5 Operating Costs

6 Overall Performance

Rates and charges declared as being receivable, in thecalculations for the adopted rates, at the beginning of theyear, including:• general rates and charges declared under ss.160, 161,

161A of the Local Government Act 1989;• municipal charges and service rates and charges

(ie. garbage services) levied under ss.159, 162 respectively and

• supplementary rates declared,divided by the number of assessments used in thecalculation of the adopted rate (ie. when the rate is struck).

Rates and charges declared for all residential assessments(including vacant residential assessments) as defined in “All rates”, except for residential assessments only dividedby the number of residential assessments used in thecalculation of the adopted rate (ie. when the rate wasstruck).

Total liabilities as per the Balance Sheet (previously knownas the Statement of Financial Position) less items held intrust (reflected in assets also held) divided by the number of assessments used in the calculation of the adopted rate (ie. when the rate was struck).

Surplus (deficit) for the period per the Income Statement(previously known as the Bottom line per Statement ofFinancial Performance). Divided by the number ofassessments used in the calculation of the adopted rate (ie. when the rate was struck).

Total expenses per the Income Statement (previouslyknown as the Statement of Financial Performance) plus netgain (loss) on disposal of property, plant and equipment andinfrastructure. Divided by the number of residentialassessments used in the calculation of the adopted rate (ie.when the rate was struck).

Council result from the Annual Community SatisfactionSurvey for local governments co-ordinated by LocalGovernment Victoria.

Average rates andcharges per assessment

Average residentialrates and charges perassessment

Average liabilities perassessment

Operating result perassessment

Average operatingexpenditure perassessment

Community SatisfactionRating for OverallPerformance generallyof the Council



Category Indicators Indicator Definitions

7 Capital Expenditure

8 Infrastructure

9 Infrastructure

10 Advocacy

11 Engagement

Amount of Council’s expenditure capitalised to the Balance Sheet (previously known as the Statement ofFinancial Position) and contributions by a local governmentto major assets not owned by the local government,including expenditure on:• capital renewal of existing assets which returns the

service potential or the life of the asset up to that whichit had originally;

• capital expansion which extends an existing asset at thesame standard as currently enjoyed by residents to anew group of users; and

• capital upgrade which enhances an existing asset toprovide a higher level of service or expenditure that will increase the life of the asset beyond that which ithad originally,

divided by the number of assessments used in the calculationof the adopted rate (ie. when the rate is struck).

Ratio of current spending on capital renewal of existinginfrastructure assets which returns the service potential orthe life of the asset up to that which it had originally to theAAAC totalled for each and every infrastructure asset togive one ratio.

Ratio of current spending on capital renewal of existinginfrastructure assets which returns the service potential or the life of the asset up to that which it had originallyplus current spending on maintenance to AAAC plus allanticipated planned and unplanned maintenance (that is,the expected level of maintenance which was used in thecalculation of the useful life of the asset) totalled for each and every infrastructure asset to give one ratio.The Average Annual Asset Consumption (AAAC) is theamount of a local government’s asset base consumedduring a year. It is based on the current replacement cost ‘as new’ divided by useful life.

Council result from the Annual Community SatisfactionSurvey for Local Governments coordinated by LocalGovernment Victoria.

Council result from the Annual Community SatisfactionSurvey for Local Governments co-ordinated by LocalGovernment Victoria.

Average capitalexpenditure perassessment

Renewal

Renewal and Maintenance

Community Satisfactionrating for Council’sadvocacy and communityrepresentation on keylocal issues

Community SatisfactionRating for Council’sengagement in decisionmaking on key local issues

55


Victoria 2006 Local Government Indicatorsof Community Strength

The Indicators of Community Strength at the LocalGovernment Area 2006 are a Victorian GovernmentInitiative by the Department for Victorian Communities,Strategic Policy, Research and Communications Division.

Banyule City Council rated highly on the Department ofVictorian Communities’ 2006 state-wide survey ofcommunity wellbeing, which measured indicators ofcommunity strength across Victoria’s 79 local governmentareas.

The survey was conducted as part of the VictorianCommunity Indicators (VCI) Project, a VicHealth fundedinitiative which uses 80 indicators to measure the health,wellbeing and sustainability of local communities.

It represents a significant resource for use by State andlocal government and other organisations involved incommunity planning and building in Victoria. Results can beused by Councils as a key planning tool to improve citizenengagement, community planning and policy making.

Key results for Banyule included:

• Our subjective ‘wellbeing’ is 76% - higher than theregional average of 75%.

• Banyule residents rated their own health at 61.1% - wellabove the state average of 54.3% and the north and westmetro region average of 53.5%.

• Our work-life balance rated at 49.1%, lower than thestate-wide average of 53%.

• Social support rated 93.7% compared with a regional91.3%.

• More Banyule residents volunteer (40.9% compared with35.3% regionally).

• The number of child health assessments carried out inBanyule is 66.7% compared with a state average of 58%.

• Crime in Banyule is well below the state average –against both person and property, and people feel saferin Banyule day and night than the state and regionalaverage.

• Broadband Internet access is a high (68.8%) in Banyulecompared with 60.9% state-wide and 62.9% regionally.

• Water conservation efforts here are well above the stateand regional average and household waste recycling is at50.7% compared with the state average of 37.9%.

• Arts and culture are alive and well in Banyule, with ourparticipation rating 49.6% compared with a state averageof 46.6%.

• Banyule democracy is in good shape too, withparticipation in citizen engagement at 51.1% well abovethe regional figure of 47.8%.

See following page for more detailed results.

Banyule Council strives to develop and improve thewellbeing of our community in a variety of ways, such asproviding affordable quality services, promoting communityinvolvement, enhancing our natural and built environmentand focusing on community safety.

The results from the Victorian Community Indicatorssurvey provide valuable information that will help us withfuture planning and policy decisions, as we work to ensurea safe, healthy and active community in Banyule.

For a copy of the report visit the Community IndicatorsVictoria website: www.communityindicators.net.au


Banyule City Council Victorian Local Government IndicatorsVictoria 2006 Local Government Indicators of Community Strength (cont.)

Banyule North MetropolitanWestern Average

MetropolitanRegion

Can get help from friends family or neighbours when needed 93.7 91.3 92.4

Could raise $2000 in two days in an emergency 72.3 61.5 68.9

Volunteers 40.9 35.3 38.4

Member of organised groups 39.2 33.8 36.8

Member of group that has taken local action 40.1 37.0 39.9

Parental participation in schools 61.8 58.0 64.8

Is on decision making board or committee 15.3 13.3 15.0

Attendance at community events 35.4 35.7 37.2

Feels safe on the street alone after dark 65.9 52.6 60.3

Feels multiculturalism makes life in the area better 82.0 84.3 85.4

Feels valued by society 67.1 65.0 66.1

Feels there are opportunities to have a real say on issues that are important 52.2 53.7 54.9

The area has easy access to recreational and leisure facilities 89.1 77.5 84.2

The area has good facilities and services like shops, childcare,schools, libraries 89.6 78.5 83.3

The area has opportunities to volunteer 80.3 68.2 76.4

The area has a wide range of community and support groups 80.2 67.0 72.7

It’s an active community 76.2 61.2 65.8

Organised sport 39.0 - 44.0

Source: Department for Victorian Communities (2007) Indicators of Community Strength at the Local Government Area Levelin Victoria 2006. The report includes a description of the rationale and method for the creation of these data and can befound at www.dvc.vic.gov.au

57

Banyule City Council Annual Report 2006-2007


Best Value VictoriaAnnual Report2006-2007

59

CONTENTS PAGE

Introduction 59

Best Value at Banyule

1. Quality and cost standards 60

2. Responsive to Community Needs 61

3. Accessible for whom the service is intended 61

4. Continuous Improvement 62

5. Regular Community Consultation 63

6. Reporting regularly to the community 64

INTRODUCTION

Background

This is Council’s Best Value Victoria Annual Report for2006-2007 to its community on the application of the BestValue principles.The report highlights the range oforganisational initiatives and processes being implementedacross Council to meet the Best Value Principles andpromote a continuous improvement culture. It alsooutlines the Continuous Improvement Framework forBanyule, to provide an ongoing program to sustaincertification standards, best practice performance, andaddress the Best Value Principles.

Further information on Best Value is available on Banyule’swebsite in the comprehensive Best Value section (simplylog onto www.banyule.vic.gov.au and follow links to YourCouncil and Best Value).The following information for eachof Council’s services is also available:

- Key Performance Indicator (KPI) results;- Key Highlights for 2006/07; and - Future Challenges for 2007/08.

Best Value Principles

The Best Value legislation (introduced by the StateGovernment in 1999) is based on consideration of thefollowing six principles in providing services to thecommunity.

1. all services provided by a council must meet qualityand cost standards set by Council (having regard tocommunity expectations, affordability, accessibility, valuefor money and best practice);

2. all services provided by a council must be responsiveto the needs of its community;

3. all services provided by a council must be accessible tothose members of the community for whom they areintended;

4. a council must achieve continuous improvement inprovision of services for its community;

5. a council must develop a program of regularconsultation with its community in relation to theservices it provides;

6. a council must report regularly to its communityon its achievements in relation to the first five principles.

Best Value VictoriaAnnual Report 2006-2007


BEST VALUE AT BANYULE

Banyule has implemented its policy and ongoing servicereview and delivery framework for applying the Best Valueprinciples. This has enabled Council to determine themost effective means of providing service to thecommunity.

Each Banyule service has been subjected to:

• A service review, including:- community consultation- wide ranging benchmarking activities- service planning

• Preparation of a service delivery proposal, including:- service objectives - Quality and Cost Standards (specification) to reflect

the six Best Value Principles- ongoing service improvement action planning- key performance indicators and targets

• Regularly reporting to the community on achievementagainst the Best Value Principles.

Banyule successfully achieved the completion of all BestValue service reviews by 31 December 2005, inaccordance with the Best Value program and as requiredby the legislation.

A range of initiatives and processes have been developedand implemented throughout the organisation to integratethe Best Value principles into the life of the Council andpromote a continuous improvement culture.Theorganisational approach to the application of each principleis outlined below:

1. Quality and Cost Standards

Every service has developed Quality and Cost Standardsto define the scope of key functions/activities, key tasksand responsibilities and key performance indicators (KPI’s)relating to quality and cost.

Quality and Cost Standards are reviewed and updatedannually as part of the Best Value Plus program.

In determining Quality and Cost Standards for eachservice, Banyule considers aspects such as past exposureto competition under the previous CCT legislation, theservice’s performance history, consultation andbenchmarking results.This approach meets therequirements of parts (a) to (e) of Section 208C of theLocal Government Act.

Best Value Plus Program

The Best Value Plus Program (BV Plus) builds on the workachieved by each service unit’s Best Value review byidentifying, controlling and monitoring risks associated withquality, environmental and occupational health and safety.

The BV Plus program was designed to assist service unitsto implement the Banyule Management System andbecome certified against three key national andinternational standards of Best Practice:

• AS/NZS ISO 9001:2000 - Quality Management Systems• AS/NZS 14001:2004 - Environmental Management

Systems, and• AS 4801:2000 - Occupational Health and Safety

Management Systems.

All Banyule service units were successfully certified tothese standards in December 2005. The organisation isnow undergoing regular external quality, environmental,and OH&S auditing to ensure ongoing certification.

The BV Plus program complements the Best Value processand proactively supports delivery of the key principles ofBest Value. This program was recognised with a NationalLocal Government Award in 2005 under the title ‘BestValue Plus – World’s Best Practice at Banyule’.

Best Value Victoria Annual Report 2006-2007

61

Benchmarking

In addition to service specific benchmarking projectsundertaken as part of Best Value service reviews, Banyulealso utilises the State Government’s Annual CommunitySatisfaction Survey as a reliable and valid measure tocompare and contrast its performance against a range ofkey service areas.These service areas (categories) measurehow well Banyule is performing in relation to othermetropolitan councils in responding to its community inthe delivery of services and key overall governancemeasures such as advocacy, customer contact, communityengagement and overall performance.

The benchmarking process has fostered the developmentof service unit regional networks, who share informationand explore alternative ways of solving common problemsor issues. Other relevant service specific benchmarkingprojects are undertaken on an ongoing basis.

2. Responsive to Community Needs

As part of Banyule’s Best Value service review process,emphasis is placed on the identification of intended usersand stakeholders of each service. From analysis, the reviewteams are able to develop a sound consultation strategyfor each service review, which considers linkages acrossservices and user/stakeholder groups.The service reviewprocess covers a full range of existing consultation sourcesin assessing and responding to community needs.

Banyule also has a range of strategies in place to providetargeted responsive support to those most in needthrough their community employment, education andtraining programs.

Over recent years, the State Government AnnualCommunity Satisfaction Surveys have rated the level ofcommunity satisfaction in the Council’s performance veryhighly. In the 2007 survey, community satisfaction withCouncil’s interaction and responsiveness in dealing withthe public (Customer Contact) was again the highest inmetropolitan Melbourne. Also, Council scored highest in‘Community Engagement’ and ‘Advocacy’. These resultsreflect the continuing care and commitment of Councilstaff in providing services to the Banyule community.

Council continues to deliver its ‘Out & About’ program tofoster better links and information flows with thecommunity. Under this program, members of thecustomer service team (supported by service unit staff)

attend community centres and events to promote Counciland community programs and services, as well as educatethe community on how to best access the services andopportunities available to them.This very successfulprogram has a particular focus on groups who havedifficulty in accessing Council information or services eg.senior citizens groups.

3. Accessibility of Services

Banyule’s Best Value process closely examines theaccessibility of Council’s services to those to whom theservices are directed.

Council’s approach to accessibility is underpinned by itscommitment in Banyule’s reviewed four-year City Plan2006-2010 (Year 2) by the: ‘Community Service Planningand Delivery’ strategy – to ‘Plan, facilitate and deliveraccessible, relevant, safe and sustainable programs, facilitiesand services that respond to community needs andexpectations’. Key priorities for this strategy include:

• Develop and implement an Inclusion Policy and Strategyto improve access for everyone to Council services andfacilities.

• Ensure the most effective services are provided for ourchildren, young people and families through theimplementation of the:

- Municipal Early Years Plan

- Youth and Family Services Strategy.

• Explore opportunities to integrate Children’s Servicesacross Banyule.

• Develop a Community Facilities Strategy that alignsasset investment with projected changes to thecommunity profile.

• Address the changing service needs and resourcerequirements of our ageing community as part of ourActive Ageing Strategy.

The Best Value process has assisted Council inconsolidating these priorities. The priorities will provide aframework for service units to continue to ensure Councilservices are accessible for its community.



4. Continuous Improvement

Banyule has a comprehensive continuous improvementprogram based on its Best Value Plus certification program.Key elements include:

(a) Best Value Service Action Plans

Each Best Value service review has incorporated thedevelopment of a comprehensive action plan forcontinuous improvement and ongoing service provision.The Best Value Action Plans:

• address the key issues and opportunities forimprovement resulting from community consultationand benchmarking programs, the development of theQuality and Cost Standards and the review of currentwork practices

• include actions from key service unit strategies

• include a program of ongoing consultation andbenchmarking to ensure that the services continue tomeet community needs

• incorporate further service planning

• provide a listing of service actions that are reportedprogressively and reviewed each year

• complement key Council plans, eg. City (Council) Plan,Annual Business Plan, State of the Environment Report,Banyule Health Plan and the Municipal StrategicStatement

(b) Annual Reporting and Planning

In addition to the Corporate Planning Program (City Planand Annual Business Plan), all service units go through anAnnual Review process to report on their performance inthe previous year and plan their service for the followingyear. This includes:

• reviewing Service Objectives and Quality and CostStandards

• completing an End of Year Best Value Report (ActionPlan, KPIs and Summary of Performance/Key Highlights)

• conducting service unit/directorate planning for the nextyear, including:

- reviewing performance against last year’s action plantaking into account community feedback from ongoingconsultation

- reviewing performance against the KPI’s and targetsand determining any changes to KPI’s and targets forthe coming year

- determining priorities and key challenges

- developing an updated Action Plan

(c) Performance Reporting and Management

A new integrated Corporate Information Database (CID)was implemented to facilitate the management of actionsfor service units and the organisation.

This provides all service units with a framework for:

• integrated reporting and monitoring on achievement ofcorporate and service unit actions

• developing Action Plans on-line, as part of the AnnualReporting and Action Planning Process

• undertaking other sophisticated service unit analysis andplanning

(d) Cultural Initiatives

Council is committed to developing and implementinginnovative human resource strategies that promote staffdevelopment, achievement and wellbeing. To achieve this,Banyule has continued to implement a range of keyinitiatives and programs including:

• The ‘Working Together Working Better’ program whichprovides a values framework for staff to: put thecustomer first, respect support and encourage eachother, innovate and deliver best value, always beaccountable, communicate effectively, and work togetherwith the community.

• An Organisational Cultural Inventory program tosupport the growth and development of ourorganisational culture through development strategiesthat focus on achieving agreed and accepted values andbehaviours.

• Corporate Continuous Improvement meetings thatprovide the opportunity for staff to share informationon current projects, experiences and lessons learnedand to access industry expertise and innovation.


63

Ongoing Program - Continuous Improvement Framework

The organisation has an ongoing Continuous ImprovementFramework to sustain certification, best practiceperformance and address the Best Value Principles.

Intense set up work for Best Value and Best Value Plusover a 5-year period has provided a solid foundation forCouncil. The Best Value Principles have now been fullyintegrated into the Banyule Management System.

The objectives of the Continuous ImprovementFramework include:

• Continue to effectively apply the Best Value principles(and meet the BV Legislation).

• Maintain our Best Value Plus certification and provide astrong and sustainable continuous improvementframework to ensure future success.

• Continue to meet the changing needs of thecommunity/customers.

The Continuous Improvement Framework consists of thefollowing key components: ‘Best Value Plus Annual ReviewProgram’ and a ‘Targeted Review Program’.

Best Value Plus Annual Review Program

The Best Value Plus Annual Review Program provides theframework for the continued implementation of ourBanyule Management System, and for the continuedimprovement of service delivery and performance atBanyule. Corporate and service unit Annual Planning andReporting, and Internal and External Audit Programs are inplace to identify and address improvement opportunities.

A Management Review process is in place to assess thesuitability and effectiveness of the Banyule ManagementSystem in achieving the desired aims and policies of theCouncil. This high-level annual review is undertaken by theBanyule Management System Steering Committee todetermine the overall effectiveness of the system and toprovide recommendations for improvements to thesystem.This information is presented to Directors and theCEO in the form of an annual report.

Targeted Review Program

A Targeted Review Program is also undertaken to developkey organisational continuous improvement opportunities.It aims to identify and implement more significant

innovation opportunities and provide a flexible approachto respond to organisational challenges, needs andpriorities. This program complements the Best Value PlusAnnual Review Program, which will continue to deliverincremental continuous improvement.

Sector-wide Approach

Banyule also played an important role as part of the BestValue Practitioners Interest Group in partnering with LocalGovernment Victoria and the Best Value Commission, inthe development of the new Best Value Victoria Guidelines.

5. Regular Community Consultation

In addition to specific community consultation projectsundertaken as part of individual Best Value service reviews,Banyule also conducts community consultation andstakeholder forums prior to developing or revisingcorporate policies and strategic plans. It also draws onother current community consultation data sources such as:

• State Government’s Annual Community SatisfactionSurveys.

• Key Council plans and strategies (eg. City Plan, State ofthe Environment Report, Municipal Strategic Statementand the Municipal Health Plan).

• Demographic information on residents and businesses.

Key projects conducted in 2006/07 include consultationrelating to:

• Culturally and Linguistically Diverse (CALD) – inconjunction with the Migrant Resource Centre, focusgroups were held with identified community groups tobetter understand particular needs and the delivery ofCouncil’s services.

• Cultural Strategy – recently reviewed and redevelopedCultural Strategy for Council and community.

• Recreation Strategy – consultation to inform decisionmaking and forward directions across the municipality.

• Greensborough project – extensive consultation andinformation sessions conducted in relation to assessingand developing this project with community input andfeedback.

Refer also to the consultation details in the CorporateGovernance section of the Annual Report.



Reviewed City Plan 2006-2010 (Year 2)

In preparing Banyule’s new reviewed City Plan 2006-2010(Year 2), opportunity was given to the community invitingcomment and input. As part of the development of theplan, councillors and senior staff also participated in theplanning process that reviewed this input, along with asnapshot of the City’s latest demographic trends.

Community consultation is an important component builtinto Council’s City Plan strategies to ensure Councilcontinues to meet the changing needs of our community.Key priorities include developing and implementing aCommunity Consultation and Engagement Strategy thatwill assist Council to effectively consult with all of itscommunities around the development of key policies andplans. Also identifying further opportunities for Banyule’sCulturally and Linguistically Diverse (CALD) communitiesto participate more in the life of the community andprovide support to improve access to facilities andservices. Implementing a Cultural Strategy that supportsactivities and promotes community identity andconnection will strengthen community cohesion andpromote diversity.

State Government Annual Community SatisfactionSurvey

The 2007 Annual Community Satisfaction Survey againproduced good results for Banyule City Council. Acrossthe 13 categories measured, Banyule’s results were at, orabove the median level when compared to all councils inthe Inner Metropolitan Group. In five of these categoriesBanyule was the highest or equal highest amongst the highperforming Inner Metropolitan Group. These fivecategories are Customer Contact, CommunityEngagement, Advocacy, Waste Management and Health andHuman Services.

The Customer Contact, Community Engagement andAdvocacy results recognise the genuine care andcommitment that Council staff provide to the Banyulecommunity and the continuing high result in WasteManagement indicates the ongoing acceptance of anintroduced Waste Management system that is popular withresidents, as well as providing better protection for ourenvironment.

Banyule will continue to identify and address opportunitiesfor improvement in all categories measured, in particularwhere results were not equal to or better than the highestresults in the group.

The Department of Victorian Communities (DVC) surveyresults this year and the consistently high results over thelast nine years of the survey, demonstrate Banyule’s on-going commitment to continuous improvement andmeeting the needs of its community.

6. Reporting regularly to the community

This Best Value Victoria Annual report is included as part ofBanyule’s Annual Report document and is also available onBanyule’s website in the comprehensive Best Value section(simply log onto Council’s home page atwww.banyule.vic.gov.au and follow links to Your Counciland Best Value).

Council also regularly utilises its monthly newsletter the‘Banner’ to report back to the community on itsachievements, including Best Value improvements toservices.


65




PerformanceStatement

for the Year Ended

30 June 2007

67

CONTENTS PAGE

Introduction to the Performance Statement for 2006/07 67

Banyule’s Annual Strategic Activities - Results for the year ended 30 June 2007 68

Banyule’s Annual Strategic Activities – Explanatory Notes on Targets,Actual Results and Differences 70

Banyule City Council Approval 71

Auditor General Independent Audit Report 72

Introduction to the PerformanceStatement

The Local Government Act 1989 has now beenamended by the Local Government (DemocraticReform) Act 2003. These amendments requirecouncils to identify their key strategic activities andassociated performance targets and measures eachyear in their budget. Actual results against theseperformance targets and measures are then to berecorded in the Annual Report as part of thePerformance Statement.

Banyule’s results for 2006/07 are recorded in thisPerformance Statement, together with explanatorynotes on the performance targets, actual results anddifferences.

Banyule City CouncilPerformance Statementfor the Year Ended 30 June 2007


Banyule City Council Performance Statement for 2006-2007

Banyule’s Annual Strategic ActivitiesResults for the year ended 30 June 2007

74 75 +1

75 75 0

80 81 +1

74 74*** 0- 61# N/A- 69* N/A

90% 91% +1%

70 69 -1

64 66 +2

62 62 0

Strategic Activity Measure Target Actual Difference2006/07 2006/07


1A Provide quality community services

1B Provide quality recreationalfacilities


2A Provide best practiseenvironmental and wastemanagement services

2B Protect and enhance our naturalhabitat and the environment ofour city

2C Deliver environmental bestpractice in partnership with ourcommunity

3. Local Amenity and Built Environment Management

3A Protect and enhance theappearance and amenity of ourpublic areas

3B Ensure that Banyule’s physicalassets are sustainably managed forthe overall benefit of thecommunity

3C Encourage development that issympathetic to the environmentand community needs

** 2B changed from 1 question to 3 in the community satisfaction survey 2007/08 targets will reflect change***Management of natural habitat including wetlands on Council lands# Reducing Pollution (including Greenhouse Gases) and conserving resources (including energy, water and materials)* Provision of education and activities that encourage and enable the community to be more sustainable

Community Satisfaction Index rating forHealth & Human Services

Community Satisfaction Index rating forRecreational Facilities

Community Satisfaction Index rating forWaste Management

Community Satisfaction Index rating forSustainability and the Environment**

Performance against State of theEnvironment Report (% Actionscompleted on time).

Community Satisfaction Index rating forAppearance of Public Areas.

Community Satisfaction Index rating forLocal Roads and Footpaths.

Community Satisfaction Index rating forTown Planning Policy and Approvals.

69

Banyule City Council Performance Statement for 2006-2007Banyule’s Annual Strategic ActivitiesResults for the year ended 30 June 2007 (cont.)

64 67 +3

70 71 +1

82 80 -2

90% 90% 0

Result Resultachieved achieved 0

Achieve Certification 0Certification Achieved

Strategic Activity Measure Target Actual Difference2006/07 2006/07


4A Foster an environment thatsupports the success of localbusiness


5A Deliver services that meet theneeds of our community.

5B Continue to strengthen CustomerService and relationships with ourcommunity

5C Undertake a range of communityprojects.

5D Ensure the sound stewardship offinancial resources

5E Continue to improve services toensure they meet Best Practice inQuality, Occupational Health &Safety and EnvironmentalManagement

Community Satisfaction Indexrating for Economic Development.

Community Satisfaction Indexrating for overall performance.

Community Satisfaction Indexrating for Council's interaction andresponsiveness in dealing with thepublic.

Percentage of projects in NewWorks and Services programcompleted on time.

Achievement of the budgeted resultor better

Maintain full certification for allservices to the most recentNational/International standards inQuality, Occupational Health &Safety and EnvironmentalManagement


Explanatory Notes on Targets, Actual Results andDifferences

Community Satisfaction Index Ratings

Community satisfaction ratings come from the 2007Community Satisfaction Survey conducted by the WallisConsulting Group on behalf of the Department ofVictorian Communities and Victorian Councils.

Banyule Council continued to deliver exemplary resultswith many of the key assessment areas again peaking at oraround the top of the surveyed results when comparedagainst others in the Metropolitan Council’s industrygroup.

Banyule’s results for the critical area of ‘Interaction andresponsiveness in dealing with the public’ again remainedhigh this year at 80, the highest result in the innermetropolitan group of councils.

Council’s indexed mean score for Advocacy andCommunity Engagement of 69 and 65 respectively werealso the highest results in the group.

Specific responsibility areas measured included Health &Human Services and Waste Management where Councilalso top scored at 75 and 81 respectively. Further scoreimprovement resulted in local roads and footpaths at 66and Economic Development at 67. Unchangedperformance occurred for recreational facilities 75,appearance of public areas 69, traffic management andparking 62, enforcement of By Laws 65 and Town PlanningPolicy and Approvals 62 although scores achieved werenevertheless high relative to the highest results for theinner metropolitan group of councils.


1A Result of 75 was highest for inner metropolitan group.

1B Result of 75 was unchanged from 2006 although betterthan the median result of the group.


2A Council continues to be the industry leader in WasteManagement.

2B Council sought increased community feedbackregarding sustainability and environment. Reducingpollution and conserving resources were areasidentified for improvement.

2C The result was just over the target and combined with2B demonstrates strong commitment by Council tosustaining the environment.

3. Local Amenity and the Built Environment

3A Score of 69 equalled median result for group but roomfor improvement.

3B Score of 66 was an improvement over 2006 and 3above median for group.

3C Score of 62 a good result against highest for the groupof 63.


4A Score of 67 was an improvement over 2006 and 3higher than the median result of the innermetropolitan group of councils.


5A Result of 71 was only 1 less than the highest score of72.

5B This result is the highest in the group for this criticalarea of Customer Service and responsiveness. Councilcontinues to perform highly in this measure.

5C A very strong result with the majority of projectsbeing delivered to the community in the projectedtime frames.

5D Financial performance against Council’s overall budgetwas significantly better and reflects the financialstability and sustainability of Council as a goingconcern.

5E Council’s ongoing Best Value Plus Program continuesto meet the requirements for maintaining certificationagainst National/International standards in Quality,Occupational Health & Safety and EnvironmentalManagement.

Banyule City Council Performance Statement for 2006-2007Banyule’s Annual Strategic Activities (cont.)

71


Certification of Performance Statement

In our opinion, the accompanying Performance Statementof the Banyule City Council in respect of 2006-2007financial year is presented fairly in accordance with theLocal Government Act 1989.

The Statement outlines the performance targets andmeasures and actual results for Banyule’s Annual StrategicActivities set out in Council’s 2006-07 Budget documents.

As at the date of signing, we are not aware of anycircumstance, which would render any particulars in theStatement to be misleading or inaccurate.

COUNCILLOR:DEAN SHERRIFF


COUNCILLOR:JENNY MULHOLLAND




Auditor General VictoriaIndependent Audit Report

73

Banyule City Council Performance Statement for 2006-2007Auditor General Victoria Independent Audit Report (cont.)



Financial Statementsfor the Year Ended 30 June 2007

75

CONTENTS PAGE

Income Statement 76

Balance Sheet 77

Statement of Changes in Equity 78

Cash Flow Statement 79

Notes to the Financial Statements

Note 1 Significant accounting policies 80

Note 2 Revenue, expenses and assets by functions 86

Note 3 Income Statement line items 88

Note 4 Comparison of budgeted revenues and expenses with actual 96

Note 5 Cash and cash equivalents 97

Note 6 Trade and other receivables 97

Note 7 Investments 98

Note 8 Inventories 98

Note 9 Other current assets 98

Note 10 Infrastructure, property, plant and equipment 99

Note 11 Trade and other payables 103

Note 12 Provisions 103

Note 13 Other liabilities 104

Note 14 Reserves 105

Note 15 Notes to the Cash Flow Statement 106

Note 16 Contractual commitments 107

Note 17 Superannuation 108

Note 18 Contingent liabilities 109

Note 19 Rental income leases 109

Note 20 Financial ratios 110

Note 21 Financial instruments 111

Note 22 Related party transactions 114

Note 23 Events subsequent to balance date 116

Note 24 Aged care facility 116

Note 25 Greensborough project 117

Certification of Financial Statements 119

Audit Report 120

Banyule City CouncilFinancial Statementsfor the Year Ended 30 June 2007


Banyule City Council Financial Statements for the Year Ended 30 June 2007

Income Statement for the Year Ended 30 June 2007

Note 30/6/07 30/6/06$ ‘000 % $ ‘000 %

REVENUEGeneral rates 1(vii) 45,587 54.9 42,003 52.0Special rates and charges 431 0.5 431 0.5Interest on rates and special charges 273 0.3 247 0.3Grants and subsidies 3(i) 12,298 14.8 13,353 16.5Fees and charges 3(iii) 18,808 22.6 17,319 21.4Interest on investments 2,329 2.8 1,695 2.1Rental income 2,007 2.4 1,969 2.5Contributions 3(iv) 994 1.2 828 1.0Subdivisional contributions 11 0.0 2,665 3.3Other revenue 3(v) 368 0.5 342 0.4

TOTAL REVENUE 83,106 100.0 80,852 100.0

EXPENSESEmployee benefits 3(viii) 37,224 44.8 34,894 41.7Materials, contracts and services 3(vii) 27,066 32.6 27,156 32.4Utility charges 1,823 2.2 1,894 2.3Depreciation 1(iii), 3(vi) 10,299 12.4 13,123 15.7Donations and grants 3(ix) 613 0.7 603 0.7Other expenses 3(x) 6,110 7.3 6,006 7.2

TOTAL EXPENSES 83,135 100.0 83,676 100.0

NET LOSS (29) (2,824)

Net gain on sale of assets 3(xi) 172 104Regional Library Corporation investment movement (loss)/surplus 1(vi) (118) 16

NET RESULT FOR THE REPORTING PERIODSURPLUS /(LOSS) 4 $25 $(2,704)

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

77


Balance Sheet as at 30 June 2007

Note 30/6/07 30/6/06$ ‘000 $ ‘000

CURRENT ASSETSCash and cash equivalents 5 40,656 36,826Trade and other receivables 6 3,255 2,664Inventories 8 29 50Infrastructure work in progress 10(i) 2,033 1,407Other 9 405 1,177

TOTAL CURRENT ASSETS 46,378 42,124

NON-CURRENT ASSETSTrade and other receivables 6 276 379Investments 7 1,747 1,865Infrastructure, property, plant and equipment 10(i) 703,747 706,011

TOTAL NON-CURRENT ASSETS 705,770 708,255

TOTAL ASSETS 752,148 750,379

CURRENT LIABILITIESTrade and other payables 11 6,692 5,497Provisions 12 7,099 6,449Other 13 494 656

TOTAL CURRENT LIABILITIES 14,285 12,602

NON-CURRENT LIABILITIESTrade and other payables 11 232 184Provisions 12 624 640Other 13 336 307

TOTAL NON-CURRENT LIABILITIES 1,192 1,131

TOTAL LIABILITIES 15,477 13,733

NET ASSETS $736,671 $736,646

Represented by:EQUITYAccumulated surplus 380,903 381,596Reserves 14 355,768 355,050

TOTAL EQUITY $736,671 $736,646

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



Statement of Changes in Equityfor the Year Ended 30 June 2007

Note 30/6/07 30/6/06$ ‘000 $ ‘000

ACCUMULATED SURPLUSBalance at beginning of reporting period 381,596 389,309

Net Surplus/(Loss) 25 (2,704)Transfer to asset replacement reserves 14 (5,475) (9,986)Transfer from asset replacement reserves 14 4,757 2,846Transfer from asset revaluation reserve - 2,131

TOTAL ACCUMULATED SURPLUS 380,903 381,596

ASSET REPLACEMENT RESERVESBalance at beginning of reporting period 17,376 10,236

Amount transferred to retained profits 14 (4,757) (2,846)Amount transferred from retained profits 14 5,475 9,986

Balance at end of reporting period 14 18,094 17,376

ASSET REVALUATION RESERVEBalance at beginning of reporting period 337,674 375,558

Amount transferred as a result of revaluing assets - (35,753)Write back of valuation assets - sold during the year - (2,131)

Balance at end of reporting period 14 337,674 337,674

TOTAL RESERVES 355,768 355,050

TOTAL EQUITY $736,671 $736,646

The Statement of Changes in Equity should be read in conjunction with the accompanying notes.

79


Cash Flow Statementfor the Year Ended 30 June 2007

Note 30/6/07 30/6/06$ ‘000 $ ‘000

CASH FLOWS FROM OPERATING ACTIVITIESReceipts from ratepayers 46,062 42,516Interest received 2,584 1,961Grants and subsidies 12,415 13,176Other receipts 21,658 20,764Payments to employees (36,088) (34,638)Payments to suppliers (34,346) (35,899)Net proceeds from deposits held (132) (5,252)

NET CASH FLOWS FROM OPERATING ACTIVITIES 15(ii) 12,153 2,628

CASH FLOWS FROM INVESTING ACTIVITIESAcquisition of property, plant and equipment (4,091) (3,432)Outlays on infrastructure assets (5,485) (3,411)Proceeds from sale of property, plant and equipment 1,253 6,149

NET CASH FLOWS (USED IN) INVESTING ACTIVITIES (8,323) (694)

NET (DECREASE)/INCREASE IN CASH HELD 3,830 1,934

Cash at the beginning of the reporting period 36,826 34,892

CASH AT THE END OF THE REPORTING PERIOD 15(i) $40,656 $36,826

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


The significant policies which have been adopted in thepreparation of these Financial Statements are:

(i) The Local Government Reporting Entity

All funds through which the Council controls resources tocarry on its functions have been included in the FinancialStatements forming part of this financial report. TheBellfield Community Centre Committee of Management’saccounts have not been included in these accounts basedon their materiality.

(ii) Basis of Preparation

This financial report is a general purpose financial reportthat consists of an Income Statement, Balance Sheet,Statement of Changes in Equity, Cash Flow Statement andnotes accompanying these financial statements.

The figures presented in all the Statements and the notesto the Financial Statements are expressed as thousands ofdollars when indicated by “$’000”. Otherwise, the figuresare exact to the nearest one dollar.

This financial report has been prepared to comply with theprovisions of the Local Government Act 1989, LocalGovernment (Finance and Reporting) Regulations 2004,applicable Australian Accounting Standards, othermandatory professional reporting requirements of theAustralian Accounting Standards Board and the UrgentIssues Group Interpretations.

It has been prepared on the accrual and going concernbasis under the convention of historical cost accountingwith the exception referred to in Notes 1(iii) and 1(v).

Unless otherwise stated, the accounting policies adoptedfor the reporting period are consistent with those of theprevious reporting period. Where appropriate, comparativefigures have been amended to accord with currentpresentation, and disclosure has been made of any materialchanges to comparatives. Comparative information isincluded under AIFRS.

Financial report complies with AIFRS

Australian Accounting Standards include Australianequivalents to International Financial Reporting Standards(IFRS). Some Australian equivalents to IFRSs containrequirements specific to not-for-profit entities that areinconsistent with IFRS requirements.

The Council is an entity to which AAS 27 “FinancialReporting by Local Governments” applies and the entityhas applied a requirement in that Standard that overridesthe requirements in an Australian equivalent to IFRS.

Except to the extent that these special provisions require,this financial report complies with the Australian equivalentsto IFRS (AIFRS).

(iii) Infrastructure, Property, Plant and Equipment

(a) Recognition of Assets

Items of infrastructure, property, plant and equipment areinitially recorded at cost and are depreciated as outlinedbelow. The cost of infrastructure, property, plant andequipment is determined as the fair value of the asset givenas consideration plus incidental costs incurred in makingthe asset ready for use. The cost of infrastructure,property, plant and equipment constructed by Councilincludes the cost of materials and direct labour andoverheads. Certain fixed assets shown in Council’saccounts have been revalued as at 30 June 2006.

Infrastructure and property assets have been brought toaccount in the Balance Sheet of Council at cost in the yearof acquisition or construction and are subject todepreciation on a straightline basis over their useful livesfrom the financial year following acquisition. These assetswere revalued at 30 June 2006 at their current replacementcost less accumulated depreciation (calculated on astraightline basis).

Council has elected not to recognise land under roads asan asset in accordance with AAS 27A “Amendments to theTransitional Provisions in AAS 27”.

For the purpose of infrastructure renewal ratios,infrastructure assets include roads, drainage, footpaths andparks improvements.

All individual items of infrastructure, property, plant andequipment with a value above the threshold limit, asdetailed below, are recognised as assets. These thresholdlimits have not changed from the previous year with theexception of waste management which now has a thresholdof $10,000.


Notes to and forming part of the Financial Statementsfor the Year Ended 30 June 2007

1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

81

Banyule City Council Financial Statements for the Year Ended 30 June 2007Notes to and forming part of the Financial Statements for the Year Ended 30 June 2007 (cont.)

(iii) Infrastructure, Property, Plant and Equipment(cont.)

Asset Category Threshold Limit$

Land All

Motor vehicles All

Improvements to parks and gardens 10,000

Buildings 20,000

Road pavements (resurfacing) 10,000

Roads, streets and bridges construction 10,000

Drain construction 10,000

Plant and equipment 10,000

Furniture and fittings 10,000

Works of art and heritage All

Waste management (Big bins) 10,000

(b) Valuation of Assets

Infrastructure and property are revalued at the 30 June inthe year of each general biennial revaluation of propertywithin the municipality and are assessed each year toensure their values don’t materially vary from their currentvalues. Any revaluation increase is credited to an assetrevaluation reserve except that, where the increasereverses a decrease previously recognised as an expense, itis recognised as revenue for the financial year. Anyrevaluation decrease is recognised as an expense exceptthat, where the decrease reverses a revaluation increasepreviously credited to, and still included in the balance ofthe asset revaluation reserve, it is debited to therevaluation reserve.

The Financial Statements for the year ended 30 June 2007reflect the revaluation of assets that occurred on 30 June2006. The next revaluation is due to be reflected in theFinancial Statements for year ending 30 June 2008.

Council’s Valuer’s valuation, in the case of land and buildingsis determined in accordance with the Valuation of Land Act1960. It is calculated using market value based on existinguse. In the case of drainage, roads, streets and bridges

assets the valuation represents an estimate of written downcurrent replacement costs determined by reference toengineering construction plans and Melbourne Water basemaps after taking into account construction costs writtendown for the current condition of the assets and theimpact of any economic or technical obsolescence.

Parks and gardens assets, motor vehicles, plant andequipment, furniture and fittings, art and heritage assets andwaste management big bins are valued at cost.

(c) Work in Progress

Any work in progress at the end of a financial year, isidentified and recorded as a current asset in the BalanceSheet. Upon completion of each project, the value of workin progress will be transferred to the non-currentdepreciable assets section of the Balance Sheet and will besubject to appropriate depreciation charges thereafter.

(d) Depreciation of Non-current Assets

All non-current assets having a limited useful life aresystematically depreciated over a period of time in amanner which reflects the useful life of the asset toCouncil. Land is not a depreciable asset. Council’s artcollection and heritage assets are not considereddepreciable.

Depreciation of all assets is provided using the straightlinebasis with rates that are reviewed each reporting period.Plant and equipment, motor vehicles, furniture and fittingswere previously depreciated using the diminishing valuemethod. The change in method to straightline in 2006/07resulted in an increase of $334,125 in depreciation cost for2006/07.

The useful lives of the assets were reviewed and changed asfollows. This also had a resultant impact on the depreciationcharge for the year compared to the previous year, asfollows.

• The useful life for buildings was changed from a range of31 to 100 years to all buildings being 100 years. Thisresulted in a $663,710 reduction in depreciation cost.

• Road pavement useful life changed from 100 to 150 yearsresulting in a $344,707 reduction in depreciation cost.

• Road surface useful life changed from 25 to 40 yearsresulting in a $846,165 reduction in depreciation cost.

1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont.)



(iii) Infrastructure, Property, Plant and Equipment(cont.)

• Footpaths useful life changed from 50 to 75 yearsresulting in a $357,747 reduction in depreciation cost.

• Bridges useful life changed from 100 to 150 yearsresulting in a $18,866 reduction in depreciation cost.

• Drains useful life changed from 76 to 100 years resultingin a $393,400 reduction in depreciation cost.

Asset Category Depreciation Useful LifeRate % Years

Buildings 1.00 100

Roads, streets and bridges

• Roads – seals 2.50 40

• Roads – sub-structure .66 150

• Bridges .66 150

• Footpaths 1.30 75

• Kerb, channel and medians 1.18 – 1.42 85 – 75

Drainage 1.00 100

Improvements to parks and gardens 4 – 20 25 – 5

Waste management big bins 10 10

Plant and equipment 4 – 20 25 – 5

Motor vehicles 15 6.60

Furniture and fittings 5 – 10 20 – 10

(iv) Employee Benefits

(a) Salaries

Liabilities for salaries are recognised and are measured asthe amount unpaid at the reporting date at current payrates and include salary oncosts.

(b) Annual Leave

Annual leave entitlements are accrued on a pro-rata basis inrespect of services provided by employees up to thereporting date and are measured at the amount expected

to be paid and include salary oncosts, when the accruedobligation is to be settled.

(c) Long Service Leave

Long service leave entitlements payable are assessed atbalance date having regard to expected employeeremuneration rates on settlement, employment relatedoncosts and other factors including accumulated years ofemployment, on settlement and experience of employeedeparture per year of service. Long service leave expectedto be paid within 12 months is measured at nominal valuebased on the amount expected to be paid when settled.Long service leave expected to be paid later than one yearhas been measured at the present value of the estimatedfuture cash outlflows to be made for these accruedentitlements. Commonwealth bond rates are used fordiscounting future cash flows.

(d) Superannuation

The superannuation expense for the reporting period is theamount of the statutory contribution the Council makes tothe superannuation plan which provides benefits to itsemployees. Details of those arrangements are set out inNote 17.

A liability is recognised in respect of Council’s presentobligation to meet the unfunded obligations of definedbenefit superannuation scheme to which some of itsemployees are members. The liability is defined as theCouncil’s share of the scheme’s unfunded position, beingthe difference between the present value of employees’accrued benefits and the net market value of the scheme’sassets at balance date. The liability also includes applicablecontributions tax of 15%.

(e) Employee Entitlements

The provisions for annual leave and long service leaveentitlements are classified and calculated as follows:

All annual leave and unconditional vested long service leaverepresenting 10 or more years of continuous service is:

• disclosed in accordance with AASB 101, as a currentliability even where Council does not expect to settlethe liability within 12 months as it will not have theunconditional right to defer the settlement of theentitlement should an employee take leave within 12months;


83

(iv) Employee Benefits (cont.)

• measured at:- nominal value under AASB 119 where a component of

this current liability is expected to fall due within 12months after the end of the period; and

- present value under AASB 119 where Council doesnot expect to settle a component of this currentliability within 12 months.

Long service leave representing less than 10 years ofcontinuous service is:

• disclosed in accordance with AASB 101 as a non-currentliability; and

• measured at present value under AASB 119 as Councildoes not expect to settle this non-current liabilitywithin 12 months.

(v) Investments

Investments are measured at cost or at officers’ valuation.

(vi) Regional Library Corporation

Council’s 45.5% (46% in 2005/2006) equity interest in theYarra Plenty Regional Library Service is disclosed as a non-current investment at Officers’ valuation (refer Note 7).The Officers’ valuation is 45.5% (46% in 2005/2006) of theLibrary Service’s net assets at 30 June 2007. Change tothe value of the investment is recognised in the IncomeStatement. Banyule City Council, Whittlesea City Counciland Nillumbik Shire Council each control one-third of thetotal voting entitlement of the Library Service.

(vii) Rates, Grants, Donations and otherContributions

For the basis of rates calculation, Council uses CapitalImproved Value (CIV) as the basis of valuation of allproperties within the municipality. The Capital ImprovedValue of a property is the value of the land and anybuildings.

The valuation base used to calculate general rates for2006/2007 was $18,295,247,500 ($17,237,631,500 for2005/2006).The 2006/2007 rate in the CIV dollars was

0.00244160 cents for residential improved (0.00239232cents for 2005/2006). The 2006/2007 rate in the CIVdollars was 0.00280784 cents for commercial andindustrial improved properties (0.00275118 cents for2005/2006).

The date of the last general revaluation of land for ratingpurposes within the municipality was 1 January 2006 andthe valuation first applied to the rating period commencedon 1 July 2006.

The date of the next general revaluation of land for ratingpurposes within the municipality is 1 January 2008 and thevaluation will be first applied in the rating yearcommencing 1 July 2008.

Rates, grants, donations and other contributions arerecognised as revenues when the Council obtains controlover the assets comprising the contributions. Controlover assets acquired from rates is obtained upon theadoption of Council of its annual budget and fulfilling thestatutory process. Control over granted assets is normallyobtained upon receipt or upon prior notification that agrant has been secured.

Income from construction special rates and special chargesis recognised at the commencement of each scheme.Income from shopping centre special rates and chargesschemes is recognised on a yearly basis, for the length ofeach scheme, as the schemes run on a year by year basis.

Income from fees and charges is recognised at the time ofreceipt or at the time an invoice is raised, whichever is theearlier.

Unreceived contributions over which the Council hascontrol are recognised as receivables.

Where contributions recognised as revenues during thereporting period were obtained on the condition that theybe expended in a particular manner or used over aparticular period, and those conditions were undischargedas at the reporting date, the nature of and the amountspertaining to those undischarged conditions are disclosedin Note 3(ii). That note also discloses the amount ofcontributions recognised as revenues in a previous yearwhich were obtained in respect of the Council’soperations for the current period.





(viii) Inventories

Inventories held have been valued at the lower of cost andnet realisable value. Costs have been assigned to particularinventory items by weighted average cost.

(ix) Cash and Cash Equivalents

For purposes of the Cash Flow Statement, cash and cashequivalents include cash on hand, deposits at call and otherhighly liquid investments with original maturities of threemonths or less, net of outstanding bank overdrafts.

(x) Australian equivalents to International FinancialReporting Standards

For the financial year ended 30 June 2006, following theadoption of Australian equivalents to International FinancialReporting Standards (AIFRS), Banyule City Councilprepared and presented its first financial report and otheraccountability statements in compliance with the AIFRSframework.

Under AIFRS, there are requirements that apply specifically tonot-for-profit entities that are not consistent with IFRSrequirements. Banyule City Council has analysed its purpose,objectives and operating philosophy and determined that itdoes not have profit generation as a prime objective.Consequently, where appropriate, Banyule City Council haselected to apply options and exemptions within the AIFRSthat are applicable to not-for-profit entities.


(xi) Change in Accounting Policy

The following Australian Accounting Standards have been issued or amended and are applicable to the Council but are notyet effective. They have not been adopted in preparation of the financial statements at reporting date.

AASBamendment Standards affected Outline of amendment

AASB 2005-10 Amendments to Australian Accounting Standards

AASB 1 First time adoption of AIFRSAASB 101 Presentation of Financial StatementsAASB 117 LeasesAASB 139 Financial Instruments: Recognition and measurement

The disclosure requirements of AASB 132: FinancialInstruments: Disclosure and Presentation have beenreplaced due to the issuing of AASB 7: FinancialInstruments: Disclosures in August 2005. Theseamendments will involve changes to financial instrumentdisclosures within the financial report. However, there willbe no direct impact on amounts included in the financialreport as it is a disclosure standard.Application date of Standard: 1/01/2007Application date for Council: 1/07/2007

85


(xi) Change in Accounting Policy (cont.)

AASBamendment Standards affected Outline of amendment

AASB 7 Financial Instruments: Disclosures

AASB 132 Financial Instruments: Disclosure and PresentationThe disclosure requirements of AASB 132: FinancialInstruments: Disclosure and Presentation have beenreplaced due to the issuing of AASB 7: FinancialInstruments: Disclosures in August 2005. Theseamendments will involve changes to financial instrumentdisclosures within the financial report. However, there willbe no direct impact on amounts included in the financialreport as it is a disclosure standard.Application date of Standard: 1/01/2007Application date for Council: 1/07/2007

AASB 2006-3 Amendments to Australian Accounting Standards

AAS 27 Financial Reporting by Local GovernmentsAASB 1045Land Under Roads: Amendments to AAS 27A, AAS 29A and AAS 31A

From the beginning of the reporting period to which thisStandard is first applied, until the end of the first reportingperiod ending on or after 31 December 2007, transitionalprovisions shall apply. Under those provisions, localgovernments while encouraged to apply the full provisionsof this Standard, may elect instead not to recognise landunder roads as an asset in the balance sheet.

The impact of any changes that may be required when thetransitional provisions cease cannot be reliably estimatedand is not disclosed in the financial report.Application date of Standard: October 2006Application date for Council: 1/07/2008




(i) Revenues, Expenses and Assets have been attributed to the following functions:

Functions Revenues Expenses Gain/(Loss) Assets for the Year

Grants Other Total$ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000

Council and Core Corporate30/6/06 - - - 1,955 (1,955) -30/6/07 - - - 2,021 (2,021) -Community Programs30/6/06 6,176 7,756 13,932 25,000 (11,068) 273,22730/6/07 6,151 8,486 14,637 26,117 (11,480) 269,696Corporate Services30/6/06 3,986 53,001 56,987 20,501 36,486 57,44830/6/07 3,542 49,590 53,132 13,280 39,852 60,759City Development30/6/06 891 6,489 7,380 10,741 (3,361) 115,23630/6/07 941 7,926 8,867 11,752 (2,885) 114,926City Services30/6/06 224 5,422 5,646 25,831 (20,185) 304,46830/6/07 463 5,414 5,877 27,005 (21,128) 306,767Works and Services30/6/06 2,076 996 3,072 5,693 (2,621) -30/6/07 1,201 645 1,846 4,159 (2,313) -

TOTAL 30/6/06 13,353 73,664 87,017 89,721 (2,704) 750,379TOTAL 30/6/07 12,298 72,061 84,359 84,334 25 752,148

2. FUNCTIONS

87

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

Governance and Operation and maintenance of Management of CouncilManagement of Council Council Chambers

Corporate Services Accounts payable Finance management and planningBest Value Plus certification program InvestmentsBusiness support and development Occupational health and safetyContract support PayrollCorporate development PurchasingCorporate planning Rates administrationCustomer communications Revenue collectionData administration Risk managementFinancial and management accounting Victoria Grants Commission return

Community Programs Aged, access and inclusion Library servicesArts RecreationFamily and children’s services Social planningHealth services Youth servicesLeisure and culture

City Development Administration Local laws and animal welfareBuilding control Property managementCemetery management Records managementConservation and tourism School crossingsEconomic development Strategic and statutory planningEngineering design and traffic ValuationsInfrastructure asset management

City Services Asset protection Human resource managementBuilding maintenance and services Information technologyCleansing Labour market programCommercial drain cleaning NurseryConstruction management Park maintenance and bushland managementDepot operating Plant and fleet managementEmergency management Recycling and waste transfer stationEnvironmental waste management Road and infrastructure maintenanceHorticultural services Tree care/arboriculture

Works and Services Major works throughout the Municipality


2. FUNCTIONS (cont.)



Note 30/6/07 30/6/06$’000 $’000

3. INCOME STATEMENT LINE ITEMS

(i) Grants Revenue:

Recurrent GrantsFrom State GovernmentADASS aged care respite 211 202ADASS planned activity group 317 310Bus shelter construction 327 -Delivered meals 144 159HACC assessment and care management 250 241Home care 1,241 1,223Personal care 502 492Respite care 459 437Maternal and child health centres 496 450Maternal and child health outreach worker 69 86National competition policy - 275Preschools 211 252Primary care partnership 314 253School crossing supervisors 122 130Vic Roads maintenance 59 179Vic Roads shared trail - 593Victoria grants commission – roads 738 686Victoria grants commission – unallocated 3,413 3,711Other grants 498 474

9,371 10,153From Federal GovernmentChild day care 489 669Family day care 602 684Roads to recovery 508 848Specialist children’s worker 148 94Other grants 145 114

1,892 2,409From Other SourcesOther grants 117 129

117 129

Total Recurrent Grants 11,380 12,691

89


Note 30/6/07 30/6/06$’000 $’000

3. INCOME STATEMENT LINE ITEMS (cont.)

(i) Grants Revenue (cont.):

Non-Recurrent GrantsFrom State GovernmentBridge replacement 10 114Greensborough project - 151Malahang reserve masterplan 153 -Plenty River trail bridge 151 -Plenty River trail extension 120 -LAPSP planning together 100 -Other grants 340 383

874 648From Federal GovernmentOther grants 8 8

8 8From Other SourcesOther grants 36 6

36 6

Total Non-Recurrent Grants 918 662

TOTAL GRANTS 12,298 13,353



Note 30/6/07 30/6/06$’000 $’000


(ii) Conditions over Grants:

Grants which were recognised as revenue in the previous year/years andwere expended during the current year in the manner specified by the grantor were:

• Sustain water use plan 45 -• Water Watch program 42 3• Neighbourhood renewal 63 -• Healthy cities project 20 -• Roads to recovery 157 -• Switch on project 30 -• Travel smart project 12 -• Chemical drop off project 19 -• Child day care centres 27 -• Family day care 31 -• Metro access program 22 -• Greensborough project (a) 76 -• Pride of Place project (b) 48 20• Melbourne 2030 project (c) 17 29• Community employment and training - 33• River Gum Walk bike path - 4• CSRDO supplementary services program - 4• Water conservation - 8• Youth services - 20• Pedestrian improvement – Burgundy St - 7

609 128

Grants which were recognised as revenue during the period and were unspent at balance date:

• LAPSP-planning together 5 -• LAPSP-best practice guides 11 -• Heritage study 49 -• Olympic Village project 45 -• Heidelberg art market 8 -• Greensborough project (a) 76 126• Pride of Place project (b) 48 -• Melbourne 2030 project (c) 17 -• Sustain water use plan - 45• Water Watch program - 42• Neighbourhood renewal (d) 19 94• Healthy cities project - 20

91


Note 30/6/07 30/6/06$’000 $’000


(ii) Conditions over Grants (cont.):

Grants which were recognised as revenue during the period and were unspent at balance date (cont.):

• Roads to recovery (e) 36 488• Switch on project 19 30• Travel Smart project 34 12• Chemical drop off project (f) 2 23• Child day care centres - 27• Family day care - 31• River Gum Walk bike path (g) - 40• Metro access program - 22

5(iv) 369 1,000

Net increase/(decrease) in restricted assets resulting from grant revenues for the period (240) 872

Grants which were recognised as revenue during previous financial years and have not yet been spent in the manner specified by the grantor:

(a) Greensborough project 170 120(b) Pride of Place project 135 183(c) Melbourne 2030 project 44 61(d) Neighbourhood renewal 31 -(e) Roads to recovery 331 -(f) Chemical drop off project 6 -(g) River Gum Walk bike path 40 -

Unspent grants from previous years 5(iv) 757 364


Note 30/6/07 30/6/06$’000 $’000


(iii) Fees and Charges Revenue

• Building and Planning permits and fees (a) 3,753 3,272• Child day care charges 877 742• Delivered meals charges 691 664• Drain cleaning charges 267 269• Food act and Health registrations 385 358• Function centre charges 2,036 2,071• Home, Personal and Respite care charges 452 420• Leisure centres fees and charges 2,459 2,101• Local laws fines, fees and permits (b) 1,945 1,311• Municipal charge 1,017 967• Road and footpath reinstatement and inspection fees 485 426• Transfer station and waste charges and fees 2,726 2,810• Valuation fees and charges 259 38• Others fees and charges 1,456 1,870

18,808 17,319

(a) The building industry has been very active during the year. The increase in building fees is a direct result of the increaseddemand for Council’s building permit services. Planning infringements income also increased.

(b) The increase in local laws income is attributable to increased animal registrations and an increase in parking infringementsissued.


93


Note 30/6/07 30/6/06$’000 $’000


(iv) Contributions Revenue

• Public Open Space – contributions 641 554• Contributions for new works and services projects 173 142• Contributions from sporting clubs 92 41• Other contributions 88 91

994 828

(v) Other Revenue

• Vehicle contributions 275 256• Other revenue 93 86

368 342

(vi) Depreciation Expense (a)

• Buildings 1,409 1,952• Plant and equipment 647 535• Waste management 265 291• Motor vehicles 2,096 1,912• Furniture and fittings 115 73• Roads, streets and bridges 3,392 5,534• Drainage system 1,269 1,647• Parks and gardens improvements 1,106 1,179

10,299 13,123

(a) Refer also to Note 1(iii)

Note 30/6/07 30/6/06$’000 $’000


(vii) Materials, Contracts and Services

• Auditing services – external 43 42• Auditing services – external other 2 -• Auditing services – internal 92 76• Building and Planning charges and government fees 940 811• Child care expenses 563 594• Community program costs 787 634• Contractor costs 12,375 12,740• General materials and supplies 2,755 2,808• Insurances 911 916• Plant and motor vehicle operating 2,559 2,434• Printing, stationery and external communications 675 603• Staff training and equipment 554 510• Sundry expenses 297 293• Waste disposal general 3,020 3,335• Other 1,493 1,360

27,066 27,156

(viii)Employee Benefits

• Salaries and wages 29,458 27,847• Oncosts

> Annual leave and loading 2,579 2,445> Long service leave 829 712> Superannuation 2,689 2,597> Workcover 1,151 797> Other oncosts 518 496

37,224 34,894



95


Note 30/6/07 30/6/06$’000 $’000


(ix) Donations and Grants

• Banyule Housing Support group 73 72• Volunteers of Banyule Resources Centre 88 86• Community Services grants 74 87• Banyule Support and Information 52 52• Darebin Creek Management Committee - 78• Other donations 326 228

613 603

(x) Other Expenses

• Bad and doubtful debts 55 239• Operating lease rental 252 168• Cleansing Department waste disposal 138 108• Other 325 405• Contributions

> Yarra Plenty Regional Library 3,128 3,054> Metropolitan Fire and Emergency Services Board 1,016 965> Contributions shopping centres 861 877> YMCA 201 130> Other contributions 134 60

6,110 6,006

(xi) Sale of Assets

Proceeds from sale of assets 1,253 6,149Written down value of assets sold 10(ii) 1,081 6,045Net Gain/(Loss) on sale of assets 172 104



BUDGET ACTUAL BUDGET ACTUAL30/6/07 30/6/07 30/6/06 30/6/06

$ ‘000 $ ‘000 $ ‘000 $ ‘000

4. COMPARISON OF BUDGETED REVENUES AND EXPENSES WITH THE ACTUAL REVENUES AND EXPENSES RELEVANT TO DETERMINING THE OPERATING RESULT

* This information is not required by the Accounting Standard but is provided for a useful comparison of budget and actual amounts on an activity basis.

REVENUE FROM ORDINARY ACTIVITIESRates 45,496 45,587 42,087 42,003Council and Core Corporate - - 4 -Community Programs 14,584 14,637 14,113 13,932Corporate Services 5,643 7,545 6,007 14,984City Development 7,652 8,867 7,207 7,380City Services 5,276 5,877 5,241 5,646Works and Services 3,764 1,846 2,613 3,072

TOTAL REVENUE FROM ORDINARY ACTIVITIES 82,415 84,359 77,272 87,017

EXPENSES FROM ORDINARY ACTIVITIESCouncil and Core Corporate 2,017 2,021 1,982 1,955Community Programs 26,807 26,117 25,432 25,000Corporate Services 16,398 13,280 16,338 20,501City Development 11,676 11,752 10,954 10,741City Services 25,008 27,005 24,536 25,831Works and Services 6,953 4,159 4,629 5,693

TOTAL EXPENSES FROM ORDINARY ACTIVITIES 88,859 84,334 83,871 89,721

NET SURPLUS/(LOSS) FROM ORDINARY ACTIVITIES (6,444) 25 (6,599) (2,704)

The budgets are for the year specified and do not include any carried forward surplus or deficit.

97


Note 30/6/07 30/6/06$’000 $’000

5. CASH AND CASH EQUIVALENTS

Cash on hand 9 9Cash at bank 849 2,028Money market call account 1,977 3,277Financial Institutions Investment Units – at market value 37,821 31,512

TOTAL CASH AND CASH EQUIVALENTS 40,656 36,826

Unrestricted 33,048 29,555Subject to external restrictions (refer (i) - (v) below) 7,608 7,271

Total cash and cash equivalents 40,656 36,826

The following restrictions have been imposed by regulations or other externally imposed requirements:

(i) Long service leave 4,140 3,768(ii) Deposits held 13 830 963(iii) Reserves: Open Space and Off-Street Parking 14 1,507 1,162(iv) Unexpended grants 3(ii) 1,126 1,364(v) Unexpended contributions 5 14

Total restricted cash and cash equivalents 7,608 7,271

6. TRADE AND OTHER RECEIVABLES

CurrentRates debtors 456 459Sundry debtors 3,573 3,130Less provision for doubtful debts (774) (925)

Total current trade and other receivables 3,255 2,664

Non-currentRates debtors 56 109Sundry debtors 220 270

Total non-current trade and other receivables 276 379

TOTAL TRADE AND OTHER RECEIVABLES 3,531 3,043



Note 30/6/07 30/6/06$’000 $’000

7. INVESTMENTS

Shares in MAPS Group Ltd – at cost 9 9Share of Yarra Plenty Regional Library Corporation – 1(vi)at Officers’ valuation (a) 1,738 1,856

TOTAL INVESTMENTS 1,747 1,865

(a) The valuation is made as at 30 June each year. The 2006/2007 valuation is based on draft financial statements (2005/2006was based on audited financial statements).

8. INVENTORIES

Stores and raw materials 29 50

TOTAL INVENTORIES 29 50

9. OTHER CURRENT ASSETS

Prepayments 405 1,177

TOTAL OTHER CURRENT ASSETS 405 1,177

99


Note 30/6/07 30/6/06$’000 $’000

10.(i) INFRASTRUCTURE, PROPERTY, PLANT AND EQUIPMENT

Freehold land• at Council’s valuation of market value (a) 395,590 395,590• at cost 331 -

395,921 395,590

Freehold buildings• at cost 1,052 -

less accumulated depreciation - -1,052 -

• at Council’s valuation of market value (a) 140,814 140,814less accumulated depreciation 53,776 52,367

87,038 88,447

Total Freehold buildings 88,090 88,447

Plant and equipment• at cost 5,522 5,662

less accumulated depreciation 3,665 3,4191,857 2,243

Waste management• at cost 4,974 4,974


Motor vehicles• at cost 14,975 13,705


Furniture and fittings• at cost 2,116 2,136

less accumulated depreciation 1,770 1,688346 448

Art collection and heritage• at cost 1,088 1,065

1,088 1,065



Note 30/6/07 30/6/06$’000 $’000

10.(i) INFRASTRUCTURE, PROPERTY, PLANT AND EQUIPMENT (cont.)

Roads, streets and bridges• works at cost 2,626 -

less accumulated depreciation - -2,626 -

• at Council’s valuation of current replacement cost (b) 257,920 257,920less accumulated depreciation 144,063 140,671

113,857 117,249

Total Roads, streets and bridges 116,483 117,249

Drainage• works at cost 147 -

less accumulated depreciation - -147 -

• at Council’s valuation of current replacement cost (c) 126,906 126,906less accumulated depreciation 46,583 45,314

80,323 81,592

Total Drainage 80,470 81,592

Parks and gardens• works at cost 28,204 27,450


Work in progress• at cost 2,033 1,407

2,033 1,407

TOTAL INFRASTRUCTURE, PROPERTY,PLANT AND EQUIPMENT 705,780 707,418

101


Note 30/6/07 30/6/06$’000 $’000

10.(i) INFRASTRUCTURE, PROPERTY, PLANT AND EQUIPMENT (cont.)

Current• Infrastructure work in progress 2,033 1,407Total infrastructure work in progress 2,033 1,407

Non-current• Infrastructure, property, plant and equipment 703,747 706,011Total non-current infrastructure, property, plant and equipment 703,747 706,011

TOTAL INFRASTRUCTURE, PROPERTY,PLANT AND EQUIPMENT 705,780 707,418

(a) At 30 June 2006, Council’s land and buildings were restated to Council’s valuation of market value based on existing use.The valuations were carried out by Council’s Valuer, Mr P Kemm, A.V.L.E. in accordance with the basis of valuation referred to in Note 1(iii)(b).

(b) At 30 June 2006, Council’s road assets (excluding value of land under roads) were restated to Council’s valuation of currentreplacement cost. The valuation of these assets was carried out by Peter Batson – Senior Pavement Management TechnicianSMEC, in accordance with the basis of valuation referred to in Note 1(iii)(b). SMEC Pavement Management System softwarewas used to assist with this process.

(c) At 30 June 2006, Council’s drainage assets were restated to Council’s valuation of current replacement cost. The valuation wascarried out by Peter Batson – Senior Pavement Management Technician SMEC, in accordance with the basis of valuationreferred to in Note 1(iii)(b).

Expenditure on roads, streets and bridges, land, buildings, parks and gardens, drainage, art collection and work in progresstotalling $5,629,647 ($6,489,536 in 2006) occurred during the year. Expenditure on garbage trucks, waste management –big bins, plant and equipment, furniture and fittings and motor vehicles totalling $4,112,361 ($3,188,384 in 2006) occurredduring the year. These figures, plus/minus accruals, are disclosed in the Cash Flow Statement under Cash Flows fromInvesting Activities.



2007 Carrying Transfer Plus Plus Less Less CarryingAmount at Between Change in Additions WDV of Depreciation Amount at

30/06/06 Classes Valuations Disposals 30/06/07$ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000

Freehold land 395,590 - - 331 - - 395,921Freehold buildings 88,447 43 - 1,009 - 1,409 88,090Plant and equipment 2,243 - - 383 122 647 1,857Waste management 1,923 - - - - 265 1,658Motor vehicles 7,254 - - 3,712 934 2,096 7,936Furniture and fittings 448 - - 17 4 115 346Art collection and heritage 1,065 - - 23 - - 1,088Roads, streets and bridges 117,249 - - 2,626 - 3,392 116,483Drainage 81,592 - - 147 - 1,269 80,470Parks and gardens 10,200 21 - 804 21 1,106 9,898Work in progress 1,407 (64) - 690 - - 2,033

TOTAL 707,418 - - 9,742 1,081 10,299 705,780

2006 Carrying Transfer Plus Plus Less Less CarryingAmount at Between Change in Additions WDV of Depreciation Amount at

30/06/05 Classes Valuations Disposals 30/06/06$ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000

Freehold land 338,662 - 60,718 10 3,800 - 395,590Freehold buildings 85,818 - 4,951 817 1,187 1,952 88,447Plant and equipment 2,404 18 - 384 28 535 2,243Waste management 2,166 (18) - 58 (8) 291 1,923Motor vehicles 7,496 - - 2,708 1,038 1,912 7,254Furniture and fittings 482 - - 39 - 73 448Art collection and heritage 1,041 - - 24 - - 1,065Roads, streets and bridges 222,635 - (103,932) 4,080 - 5,534 117,249Drainage 80,553 - 2,510 176 - 1,647 81,592Parks and gardens 10,747 - - 632 - 1,179 10,200Work in progress 658 - - 749 - - 1,407

TOTAL 752,662 - (35,753) 9,677 6,045 13,123 707,418

10.(ii) RECONCILIATION

Reconciliations of the carrying amounts of each class of infrastructure, property, plant and equipment at the beginning andend of the current financial year are set out below:

103


Note 30/6/07 30/6/06$’000 $’000

11.TRADE AND OTHER PAYABLES

CurrentTrade Creditors 5,570 4,627Accruals 1,122 870

Total current trade and other payables 6,692 5,497

Non-currentAccruals 232 184

Total non-current trade and other payables 232 184

TOTAL TRADE AND OTHER PAYABLES 6,924 5,681

12. PROVISIONS

CurrentAnnual leave entitlements and Long service leave entitlements representing 10 or more years of continuous serviceShort term employee benefits- Annual leave 3,196 2,943- Long Service leave 2,869 2,610

Long term employee benefits- Annual leave 41 45- Long Service leave 993 851

Total current provisions 7,099 6,449

Non-currentLong service leave entitlements representing 10 or more years of continuous service 624 640

Total non-current provisions 624 640

TOTAL PROVISIONS 1(iv)(e) 7,723 7,089

PROVISIONS SUMMARYAnnual leave 3,237 2,988Long Service leave 4,486 4,101

TOTAL PROVISIONS 7,723 7,089



Note 30/6/07 30/6/06$’000 $’000

13. OTHER LIABILITIES

Current Deposits held (a) 494 656

Total current other liabilities 494 656

Non-currentDeposits held (a) 336 307

Total non-current other liabilities 336 307

TOTAL OTHER LIABILITIES 830 963

(a) Deposits are held for the following purposes:• contract tenders• subdivisions• street trees• open space requirements• sundry

105


14. RESERVES

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

2007Asset Replacement Reserves Balance as at Transfers Transfers Transfers Balance as at

30/06/06 Between To From 30/06/07$ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000

General 12,226 24 1,969 1,204 13,015GPAC 246 2,000 73 397 1,922Plant and Equipment 3,739 (2,000) 2,602 2,694 1,647Public Open Space 821 - 831 462 1,190Off-Street Car Parking 341 (24) - - 317Externally managed Leisure Centre 3 - - - 3

17,376 - 5,475 4,757 18,094

Asset Revaluation Reserve 337,674 - - - 337,674

TOTAL RESERVES 355,050 - 5,475 4,757 355,768

The above table generally indicates usage of funds for budgeted new works and services and recovery of capital fromprevious expenditures and investment projects in the ordinary course of business. These amounts are determined inaccordance with the approved budget and subsequent Council reports.

Public open space reserve collects contributions from developers, relating to subdivision of land and is then applied to thedevelopment of public open space assets.

2006Asset Replacement Reserves Balance as at Transfers Transfers Balance as at

30/06/05 To From 30/06/06$ ‘000 $ ‘000 $ ‘000 $ ‘000

General 6,039 6,758 571 12,226GPAC - 246 - 246Plant and Equipment 3,363 2,431 2,055 3,739Public Open Space 527 514 220 821Off-Street Car Parking 304 37 - 341Externally managed Leisure Centre 3 - - 3

10,236 9,986 2,846 17,376

Asset Revaluation Reserve 375,558 - 37,884 337,674

TOTAL RESERVES 385,794 9,986 40,730 355,050



30/6/07 30/6/06$’000 $’000

15. NOTES TO THE CASH FLOW STATEMENT

(i) Reconciliation of Cash

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

Cash and Cash Equivalents (see Note 5) 40,656 36,826

(ii) Reconciliation of (Net Loss) to Net Cash Flows from Operating Activities

Surplus/(Net Loss) from Ordinary Activities 25 (2,704)Add/(less) items classified as investing/financing activities:-(Profit)/Loss on sale of non-current assets (172) (104)

Add/(less) non cash items:-Depreciation 10,299 13,123Regional Library Corporation investment adjustment 118 (16)Donation of building, art and vehicle - (2,665)

Net cash flows from operating activities before change in assets and liabilities 10,270 7,634

Change in assets and liabilities, excluding investing activities:-(Increase)/decrease in receivables (488) 249(Increase)/decrease in inventories 21 (18)(Increase)/decrease in prepayments 772 (982)Increase/(decrease) in payables 1,077 407Increase in employee provisions 634 590(Decrease)/increase in deposits held (133) (5,252)

Total change in assets and liabilities 1,883 (5,006)

NET CASH FLOWS FROM OPERATING ACTIVITIES 12,153 2,628

107


30/6/07 30/6/06$’000 $’000

16. CONTRACTUAL COMMITMENTS

(i) Capital expenditureContractual commitments at balance date were for:-Plant, construction and playground replacement 1,063 866

Total contractual capital commitments 1,063 866

(ii) Capital expenditure commitments:-Not later than one year 1,063 866

Total contractual capital commitments 1,063 866

(iii) Operating ExpenditureContractual commitments at balance date were for:-Corporate database implementation 16 -Operating aquatic facility 85 -Building maintenance - 126Valuation services 75 38Cleaning services 258 162Tree maintenance - 479Recreation research 7 -Waste collection - 323Security services 47 9Traffic signal maintenance 5 -

Total contractual operating commitments 493 1,137

(iv) Operating expenditure commitments:-Not later than one year 376 584Later than one year, but not later than five years 117 553

Total contractual operating commitments 493 1,137

(v) Leased equipment and propertyOperating lease commitments:-Not later than one year 213 175Later than one year but not later than five years 541 522

Total future operating lease rentals payable 754 697



Council makes employer superannuation contributions inrespect of its employees to the Local AuthoritiesSuperannuation Fund,Vision Super (the Fund). The Fundhas two categories of membership, each of which is fundeddifferently. Council also makes employer superannuationcontributions in respect of three employees to theirpersonal superannuation funds. Obligations forcontributions are recognised as an expense in profit or losswhen they are due.

Accumulation Fund

The Fund’s Accumulation category,Vision Super Saver,receives both employer and optional employeecontributions on a progressive basis. Employer contributionsare normally based on a fixed percentage of employeeearnings (9% required under the Superannuation GuaranteeLegislation). No further liability accrues to the employer asthe superannuation benefits accruing to employees arerepresented by their share of the net assets of the Fund.

Defined Benefit Fund

The Fund’s Defined Benefit Plan is a multi-employersponsored plan. As the Fund’s assets and liabilities arepooled and are not allocated by employer, the Actuary isunable to reliably allocate benefit liabilities, assets and costsbetween employers. As provided under Paragraph 32 (b) ofAASB 119, Council does not use defined benefit accountingfor these contributions.

Council makes employer contributions to the definedbenefit category of the Fund at rates determined by theFund’s Trustee on the advice of the Fund’s actuary. On thebasis of the results of the most recent full actuarialinvestigation conducted by the Fund’s actuary as at 31December 2005, the Trustee has determined that thecurrent funding arrangements are adequate for theexpected Defined Benefit Plan liabilities.

The Defined Benefit Scheme was closed to new memberson 31 December 1993.

Council makes the following contributions:-

> 9.25% of members’ salaries (same as previous year);> the difference between resignation and retrenchment

benefits paid to its retrenched employees, pluscontribution tax (same as previous year);

The Fund’s liability for all employer members foraccrued benefits was determined in the 30 June2006 actuarial review pursuant to the requirementsof Australian Accounting Standard AAS 25 asfollows:

30/6/06$ ‘000

Net Market Value of Assets 3,443,686Accrued Benefits (per accounting standards) 3,319,598Difference between Assets and Accrued Benefits 124,088

Vested Benefits 3,040,443

The financial assumptions used to calculate the AccruedBenefits for the defined benefit category of the Fund were:

Net Investment Return 8.0% paSalary Inflation 5.5% paPrice Inflation 3.0% pa

Details of Council’s contributions to superannuationfunds during the year and contributions payable at30 June are as follows:

30/6/07 30/6/06$ ‘000 $ ‘000

• Employer contributions to Local Authorities Superannuation Fund (Vision Super) - Accumulation Fund 1,998 1,869- Defined Benefit Fund 682 718

2,680 2,587

• Employer contributions payable to Local Authorities Superannuation Fund (Vision Super) at reporting date. 28 21

• Employer contributions paid to an employee’s personal Superannuation Fund. 9 9

• Employer contributions payable to an employee’s personal Superannuation Fund. Nil Nil

17. SUPERANNUATION

109


30/6/07 30/6/06$ ‘000 $ ‘000

(i) GuaranteesThe Banyule City Council has undertaken to act as bank guarantor for:

various local organisations’ outstanding loans 331 407our own corporate business card facilities 75 72

406 479

(ii) Contingent Liabilities arising from PublicLiabilities

As a local authority with ownership of numerous parks,reserves, roads and other land holdings, the Council isregularly met with claims and demands allegedly arisingfrom incidents which occur on land belonging to Council.There are a number of outstanding claims against Councilin this regard. Council carries $400 million ofpublic/products liability insurance and had an excess of$10,000 on this policy in 2006/2007 (unchanged from2005/2006). Therefore, the maximum liability of Council inany single claim is the extent of its excess. The primaryinsurer is Civic Mutual Plus. There are no claims of whichCouncil is aware which would fall outside the terms ofCouncil’s policy.

(iii) Contingent Liability arising from ProfessionalIndemnity

As a local authority with statutory regulatoryresponsibilities, including the responsibility of issuingpermits and approvals, Council is met with claims anddemands for damages allegedly arising from actions ofCouncil or its Officers. Council carries $300 million ofprofessional indemnity insurance and had an excess of$12,500 on this policy in 2006/2007 (unchanged from2005/2006). Therefore, the maximum liability of Council inany single claim is the extent of its excess. The primaryinsurer is Civic Mutual Plus. There are no instances orclaims of which Council is aware which would fall outsidethe terms of Council’s policy.

At the reporting date, Council has entered into and willbenefit from the following rental income commitments.Theincome is derived from the rent of some of our properties,a golf course and the Materials Recycling Facility.

Future minimum rental income is as follows:

30/6/07 30/6/06$ ‘000 $ ‘000

Not later than one year 1,697 1,983Later than one year and not later than five years 4,224 4,124Later than five years 3,288 3,241

9,209 9,348

The income for the period is shown in the incomestatement, under revenue as rental income.

18. CONTINGENT LIABILITIES 19. RENTAL INCOME LEASES



Note 30/6/07 30/6/07 30/6/06 30/6/06 30/6/05 30/6/05$’000 % $’000 % $’000 %

20. FINANCIAL RATIOS

(a) Revenue RatioPurpose: To identify Council’s dependence on non-rate income;

Rate Revenue 45,587= 54.0%

42,003= 48.3%

39,372= 49.4%Total Revenue 84,358 87,017 79,646

(b) Debt Exposure RatioPurpose: To identify Council’s exposure to debt;

Total Indebtedness 15,477= 2.8%

13,733= 2.5%

17,857= 3.7%Total Realisable Assets (i) 545,458 541,338 478,987

(c) Working Capital RatioPurpose: To assess Council’s ability to meet current commitments.

Current Assets 46,378= 325%

40,717= 323%

38,184= 275%Current Liabilities 14,285 12,602 13,862

(d) Adjusted Working Capital RatioPurpose:To assess Council’s ability to meet current commitments.

Current Assets 46,378= 445%

40,717= 445%

38,184=333%Current Liabilities (ii) 10,423 9,141 11,455

(e) Debt Servicing RatioPurpose: To identify the capacity of Council to service outstanding debt;

Debt Servicing Costs0% 0% 0%Total Revenue

(f) Debt Commitment RatioPurpose: To identify Council’s debt redemption strategy;

Debt Servicing & Redemption Costs0% 0% 0%Rate Revenue

Note (i): Total realisable assets means total current assets and total realisable non-current assets.(ii): Current liabilities have been reduced to reflect the long service leave that is shown as a current liability because Councildoes not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date,but is not likely to fall due within 12 months after the end of the period.

111


Note

5

5

6

7

Accounting Policy

Valued at cost. Interestrecognised as it accrues.

Valued at market value. Interestis recognised as it accrues.

Receivables are carried atnominal amounts due less anyprovision for doubtful debts.A provision for doubtful debt is recognised when collectionin full is no longer probable.Collectability of overdueaccounts is assessed on anongoing basis.

Valued at cost. Dividendsrecognised when they arereceived.

Terms and Conditions

On call deposits returned floating interest averagerates returns of 6.05% (5.44% in 2006) throughoutthe year.The rate at balance date was 6.15% (5.65%at 30/06/06).

Withdrawals are possible upon 24 hours notice.Managed Funds returned floating interest ratesreturns between 5.16% and 7.32% net of fees (4.68%- 6.58% net of fees in 2006).

General receivables are unsecured and are usuallyinterest free. Credit terms are usually up to 60 days.

Council has a shareholding in MAPS Group Ltdtrading as Strategic Purchasing.

FinancialInstruments

21.1.1 Financial Assets

Cash and cashequivalents

Cash in managed funds

Trade and other receivables- Sundry - Debtors

Shares

21. FINANCIAL INSTRUMENTS

Financial Instruments – Accounting Policy Terms and Conditions

11

13

21.1.2 Financial Liabilities

Trade and other payables

Other liabilities

Liabilities are recognised foramounts to be paid in the futurefor goods received and servicesprovided to Council as atbalance date whether or notinvoices have been received.

Other liabilities are recognisedwhen the deposit is received.

Payables are unsecured, not subject to interestcharges and are normally settled within 30 daysof the end of the month in which the invoice isreceived.

Other liabilities are unsecured, not subject tointerest charges and are normally settled within30 days of the end of the month in which theinvoice is received.



Fixed Interest Maturing InNote Floating 1-Year Over Over Non Total Weighted

Interest or Less 1 to 5 5-Years Interest AverageRate Years Bearing Interest

$’000 $’000 $’000 $’000 $’000 $’000 Rate %

As at 30 June 2007

Financial LiabilitiesTrade and other payables 11 - - - - 6,924 6,924 0Other liabilities 13 - - - - 830 830 0

Total financial liabilities - - - - 7,754 7,754

Financial AssetsTrade and other receivables – Sundry 6 - 6 61 195 2,757 3,019 0.80Cash at call 5 2,835 - - - - 2,835 6.05Cash in managed funds 5 37,821 - - - - 37,821 6.30Shares 7 9 - - - - 9 15.00

Total financial assets 40,665 6 61 195 2,757 43,684

Net financial assets/(liabilities) 40,665 6 61 195 (4,997) 35,930

Comparative as at 30 June 2006

Financial LiabilitiesTrade and other payables 11 - - - - 5,681 5,681 0Other liabilities 13 - - - - 963 963 0

Total financial liabilities - - - - 6,644 6,644

Financial AssetsTrade and other receivables – Sundry 6 - 7 61 249 2,158 2,475 1.10Cash at call 5 5,314 - - - - 5,314 5.44Cash in managed funds 5 31,512 - - - - 31,512 5.73Shares 7 9 - - - - 9 15.00

Total financial assets 36,835 7 61 249 2,158 39,310

Net financial assets/(liabilities) 36,835 7 61 249 (4,486) 32,666

21. FINANCIAL INSTRUMENTS (cont.)

Financial Instruments – Interest Rate Risk

Council’s exposure to interest rate risk and the effective interest rates of financial assets and financial liabilities, bothrecognised and unrecognised, at balance date are as follows:

113



Financial Instruments – Net Fair Value

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

Note Carrying Net FairAmount Value

$’000 $’000

As at 30 June 2007

On balance sheet - financial liabilitiesPayables 11 6,924 6,924Other liabilities 13 830 830

Total financial liabilities 7,754 7,754

On balance sheet – financial assetsReceivables - Sundry 6 3,019 3,019Cash at call 5 2,835 2,835Cash in managed funds 5 37,821 37,821Shares 7 9 9

Total financial assets 43,684 43,684

Net financial position – assets 35,930 35,930

Off balance sheet – liabilityLoan guarantees 18 406 -

Comparative as at 30 June 2006

On balance sheet - financial liabilitiesPayables 11 5,681 5,681Other liabilities 13 963 963

Total financial liabilities 6,644 6,644

On balance sheet – financial assetsReceivables - Sundry 6 2,475 2,475Cash at call 5 5,314 5,314Cash in managed funds 5 31,512 31,512Shares 7 9 9

Total financial assets 39,310 39,310

Net financial position – assets 32,666 32,666

Off balance sheet – liabilityLoan guarantees 18 479 -




The following methods and assumptions are used todetermine the net fair value of financial assets and financialliabilities:

Payables, Cash Investments and Other ReceivablesThe carrying amount approximated fair value because ofthe short-term to maturity.

Unlisted SharesThe carrying amount approximated fair value.

Loan GuaranteesThe net fair value is estimated at zero because of the lowexposure to Council and the assets, built on Council landunder the guaranteed bank loans, are valued in excess ofthe guarantees.

22. RELATED PARTY TRANSACTIONS

(i) Names of persons holding the position of a ResponsiblePerson at the Banyule City Council during the reportingperiod are:

2007 2006Councillors Anthony Carbines Anthony Carbines

(elected November 2005)Peter McKenna Peter McKenna

(elected November 2005)Tom Melican Tom MelicanJenny Mulholland Jenny MulhollandDale Peters Dale PetersWayne Phillips Wayne Phillips

(elected November 2005)Dean Sherriff Dean Sherriff

Colin Brooks (retired November 2005)Sean Rawson (retired November 2005)Greg Ryan (retired November 2005)

Chief Executive OfficerDouglas Owens Douglas Owens

(ii) Remuneration of Responsible Persons in bands of$10,000:

30/06/07 30/06/06No. No.

Income range:$0 - $10,000 - 2$10,001 - $20,000 6 7$40,001 - $50,000 - 1$50,001 - $60,000 1 -$250,001 - $260,000 - 1$270,001 - $280,000 1 -TOTAL 8 11

$ ‘000 $ ‘000

Total Remuneration for the reporting period for Responsible Persons included above, amounted to: 425 399

115


(iii) No retirement benefits have been made by theCouncil to a Responsible Person. (2006: $Nil)

(iv) No loans have been made, guaranteed or secured bythe Council to a Responsible Person of the Councilduring the reporting period or the previous reportingperiod. (2006: $Nil)

(v) Other Transactions

Other related party transactions requiring disclosurehave been considered and there are no matters toreport for this reporting period or the priorreporting period.

(a) Aggregate amounts of revenue or expense for thereporting period that resulted from transactionswith Responsible Persons of the Council or theirResponsible Person related parties include:

Aggregate expenditure amounts:S. Rawson debt write back $500 (2006: $Nil)

Aggregate revenue amounts:$Nil (2006: $Nil)

(b) Other receivables from and payables toResponsible Persons of the Council or theirResponsible Person related parties recognised asat reporting date include:

Aggregate amounts payable at balance date:$Nil (2006: $Nil)

Amount receivable at balance date:D Owens $9,000 (2006: Nil)

(c) The Council does not recognise any provisionsfor doubtful receivables as at the reporting dateor the prior reporting date in respect of loanssubject to paragraph (iv) or other receivablessubject to paragraph (v)(b).

(d) The Council does not recognise any otherbenefits derived during the reporting period orthe prior reporting period by Responsible Personsof the Council or their Responsible Personrelated parties.

(vi) Senior Officers’ Remuneration

A Senior Officer other than a Responsible Person, isan Officer of Council who has managementresponsibilities and reports directly to the ChiefExecutive Officer or whose total annualremuneration exceeds $100,000.

The numbers of Senior Officers, other than theResponsible Persons, are shown below in theirrelevant income bands:

30/06/07 30/06/06No. No.

Income range:$100,001 - $110,000 3 5$110,001 - $120,000 3 2$120,001 - $130,000 10 10$130,001 - $140,000 2 -$170,001 - $180,000 - 3$180,001 - $190,000 4 1TOTAL 22 21

$ ‘000 $ ‘000

Total Remuneration for the reporting period for Senior Officers included above, amounted to: 2,915 2,709

22. RELATED PARTY TRANSACTIONS (cont.)



23. EVENTS SUBSEQUENT TO BALANCEDATE

No other matter or circumstance, which is not otherwisedisclosed in these Financial Statements, has arisen since theend of the financial period and the date of this reportwhich has significantly affected or may significantly affect theoperations of the Council, the results of those operationsor the state of affairs of the Council in subsequent years.

24.AGED CARE FACILITY – WaterdaleAssisted Living

Banyule City Council was the approved provider of anelderly citizen’s village in Ivanhoe. It was operated, by athird party, as an aged care facility and was known as“Waterdale Assisted Living”.

Council contracted out the management of this facility toThird Age Australia Pty Ltd.

As managers of Council’s aged care facility, Third AgeAustralia Pty Ltd were entitled among other things, toreceive from the Federal Government a grant known as“Conditional Adjustment Payment” (CAP). One of theconditions of receiving the grant was to have available ageneral purpose financial report.

As Council did not manage nor operate the facility the vastmajority of the financial transactions were kept in theaccounting records of Third Age Australia Pty Ltd.

The aged care facility – Waterdale Assisted Living was soldon 30 June 2006.The accommodation bonds held at 30June 2006 for current residents were paid to the newowner on this date.

The following are the details from Banyule City Council’saccounting records pertaining to Waterdale Assisted Living.

Note 30/6/07 30/6/06$ $

No assets or liabilities were held at 30/6/07 nor at 30/6/06 - -

REVENUEInterest earned on accommodation bonds - 237,494Management fee (a) - 32,844

- 270,338

EXPENDITUREInterest on accommodation bonds paid (a) - 237,494Building maintenance - 1,677

- 239,171

(a) These transactions have been paid to or received from Third Age Australia Pty Ltd.

117


25. GREENSBOROUGH PROJECT

On 15 August 2006 a Special Meeting of Council approvedthe redevelopment of Greensborough as a sustainableurban village. The project will be marketed as “GreenEdge– more life, more space, more Greensborough”. This wasaffirmed at a further meeting of Council on 12 June 2007.

The Greensborough Project should be under constructionby March 2008 and be completed by mid 2010. Paymentsto be made by Council under the Development Agreementwill commence during the financial year ending 30/06/09and conclude during the financial year ending 30/06/10.

Council has worked with private developers and the StateGovernment to put together a project that deliversmaximum benefits to the community at minimum cost.The developers are Lend Lease Property Management(Australia) Pty Limited and Consolidated Properties PtyLtd, working together as Greensborough & Partners PtyLtd.

By mixing retail and residential developments into theproject, private investment will offset the cost of theproject’s public buildings, spaces and infrastructure.

In effect, Banyule City Council will get $85.4 million worthof regional aquatic and leisure centre, collaborative office(Civic Centre), town square, pedestrian walks, car parkingand upgrades to Main Street, Para Road and Flintoff Streetfor a cash outlay by Council of $35.8 million plus the saleof land predominantly used for car-parking, however,requiring the retention of existing parking obligations.

Council has at this time agreed to underwrite aGovernment funding shortfall of $5 million. Furtherrepresentation to both State and Federal Government forfunding is proceeding.The Council believes furtherGovernment funding support for the project will bereceived in 2008/09 and 2009/10 financial years.

Costings for the Greensborough development as at 30June 2007 are shown in the following tables:

GreenEdge Development Costs $m> Regional Aquatic and Leisure Centre 33.0> Collaborative Offices (Civic Centre) 21.4> Infrastructure 8.5> Upgrades to Main, Para and Flintoff Streets 7.8> Car-Parking 7.6> Town Square 3.0> Site Preparation 4.1

85.4

Funding Sources $m> Greensborough & Partners Pty Ltd

(development contribution/land purchase) 37.6> Banyule City Council (cash) 35.8> Banyule City Council (other contribution) 5.0> Government Grants 7.0

85.4



119


Certification of Financial Statements

In my opinion the accompanying Financial Statements havebeen prepared in accordance with the Local GovernmentAct 1989, the Local Government (Finance and Reporting)Regulations 2004,Australian Accounting Standards andother mandatory professional reporting requirements.

PRINCIPAL ACCOUNTING OFFICER:KEITH YEO FCPA

Dated: Monday, 17 September 2007

In our opinion the accompanying Financial Statementspresent fairly the financial transactions of the Banyule CityCouncil for the year ended 30 June 2007 and the financialposition of the Council as at that date.

As at the date of signing, we are not aware of anycircumstances which would render any particulars in theFinancial Statements to be misleading or inaccurate.

We have been authorised by the Council on Monday,17 September 2007 to certify the Financial Statements intheir final form.





CHIEF EXECUTIVE OFFICER:DOUG OWENS




Auditor General Victoria Independent Audit Report

121

Banyule City Council Financial Statements for the Year Ended 30 June 2007Auditor General Victoria Independent Audit Report (cont.)



Standard StatementsComparison Reportsfor the Year Ended 30 June 2007

123

CONTENTS PAGE

Commentary on the Standard StatementsComparison Reports 124

Standard Statements Policy Note 125

Standard Income Statement 126

Variance Explanation Report – Income Statement 127

Standard Balance Sheet 128

Variance Explanation Report – Balance Sheet 129

Standard Cash Flow Statement 131

Variance Explanation Report - Cash Flow Statement 132

Standard Statement of Capital Works 134

Variance Explanation Report – Statement of Capital Works 135

Certification of Standard Statements 137

Audit Report 138

Banyule City CouncilStandard Statements Comparison Reportsfor the Year Ended 30 June 2007


(i) Commentary on the Standard StatementsComparison Report

The following Standard Statements and explanatory notesfor the Annual Report (the Comparison Report) form aspecial purpose financial report prepared specifically tomeet the requirements of the Local Government(Democratic Reform) Act 2003 relating to StandardStatements.

The Standard Statements in this Comparison Report eachprovide information in relation to an aspect of Council’sfinancial management. They should be read in conjunctionwith one another to obtain an overall understanding ofCouncil’s financial position and management.

The Standard Statements of Income, Balance Sheet, CashFlows and Capital Works for the Annual Report areconsistent with the budget and are prepared on basesconsistent with the financial statements.

This report is a summary of the information found in thebudget and the financial report and as such cannot beexpected to provide as full an understanding of financialperformance as the complete reports from which it isderived. The budget and financial statements together withtheir detailed notes should be examined for furtherdetailed information.

Standard Income Statement

The Standard Income Statement for the Annual Reportshows what has happened during the year in terms ofrevenue, expenses and other adjustments from allactivities. The “Total Changes in Equity” or “bottom line”shows the total difference between the financial position atthe beginning and the end of the year.

The Income Statement requires revenues to be separatelydisclosed where the item is of such a size, nature orincidence that its disclosure is relevant in explaining theperformance of the Council.

Standard Balance Sheet

The Standard Balance Sheet for the Annual report shows asnap shot of all assets and liabilities as at 30 June. It showsthe total of what is owned (assets) less what is owed(liabilities). The bottom line of this statement is net assets,which is the net worth of Council under the financialframework.

The change in net assets between the two year’s StandardBalance Sheet shows how the financial position haschanged over the year.

The assets and liabilities are separated into current andnon-current.

Standard Cash Flow Statement

The Standard Cash Flow Statement for the Annual Reportshows what has happened during the year in terms ofcash. It explains what cash movements have resulted in thedifference in the cash balance at the beginning and the endof the year.

The net cash flows from operating activities, shows howmuch cash remains, after paying for providing services tothe community, which may be invested in things such ascapital works.

The information in the Standard Cash Flow Statementassists users in the assessment of the ability to generatecash flows, meet financial commitments as they fall dueincluding funding changes in the scope or nature ofactivities and obtaining external finance.

A reconciliation of the net operating result and net cashflows from operating activities has been added to highlightnon-cash items of significance.

Standard Statement of Capital Works

The Standard Statement of Capital Works for the AnnualReport sets out all capital expenditure that has been spentor is expected to be spent in relation to non-currentassets during the financial year.

Banyule City Council Standard Statements Comparison Reports

125

(ii) Standard Statements Policy Note

• Basis of preparation of Standard Statements

Council is required to prepare and include auditedStandard Statements within its Annual Report.

These statements and supporting notes form a specialpurpose financial report prepared to meet therequirements of the Local Government Act 1989 and LocalGovernment (Finance and Reporting) Regulations 2004.

The Standard Statements have been prepared onaccounting bases consistent with those used for theGeneral Purpose Financial Statements.The resultsreported in these statements are consistent with thosereported in the General Purpose Financial Statements.

The Standard Statements are not a substitute for theGeneral Purpose Financial Statements, which are includedon pages 74 to 121 of the Annual Report.They have notbeen prepared in accordance with all Australian AccountingStandards or other authoritative professionalpronouncements.

The Standard Statements compare Council’s financial plan,expressed through its budget, with actual performance.TheLocal Government Act 1989 requires explanation of anymaterial variances.The Council has adopted a materialitythreshold of $1 million and 10% (if over $200,000) and forthe Standard Balance Sheet threshold of $2 million or 15%(if over $1 million). Explanations have not been providedfor variations below the materiality threshold unless thevariance is considered to be material because of its nature.

The budget figures included in the Statements are thoseadopted by Council on 19 June 2006.The budget wasbased on assumptions that were relevant at the time ofadoption of the budget. Also, the budget was set andadopted by Council before the 2005-2006 financial yearwas finalised.Thus the comparison between actual resultsand budget may result in variances which relate to theprevious financial year.The Council set guidelines andparameters for revenue and expense targets in this budgetin order to meet Council’s business plan and financialperformance targets for both the short and long term.




Standard Income Statementfor the Year Ended 30 June 2007

Note Budget Actual Variance Variance30/06/07 30/06/07

$’000 $’000 $’000 %REVENUE General rates 45,496 45,587 91 0.2Special rates and charges 427 431 4 0.9Interest on rates and special charges 226 273 47 20.8Grants and subsidies 12,108 12,298 190 1.6Fees and charges 1 16,824 18,808 1,984 11.8Interest on investments 2 1,938 2,329 391 20.2Rental income 2,040 2,007 (33) 1.6Contributions 3 549 994 445 81.1Subdivisional contributions - 11 11 100.0Other revenue 4 962 368 (594) 61.7Proceeds sale of assets 5 1,845 1,253 (592) 32.1

TOTAL REVENUE 82,415 84,359 1,944 2.4

EXPENSES Employee benefits 38,098 37,224 874 2.3Materials, contracts and services 6 29,079 27,066 2,013 6.9Utility charges 1,577 1,823 (246) 15.6Depreciation 7 12,750 10,299 2,451 19.2Donations and grants 503 613 (110) 21.9Other expenses 8 5,012 6,110 (1,098) 21.9Written down value of assets sold 5 1,840 1,081 759 41.3Regional Library Corporation investment movement - 118 (118) 100.0

TOTAL EXPENSES 88,859 84,334 4,525 5.1

NET (LOSS)/GAIN FROM ORDINARY ACTIVITIES (6,444) 25 6,469 100.4

NET RESULT FOR THE REPORTING PERIOD SURPLUS/(LOSS) (6,444) 25 6,469 100.4

127

Banyule City Council Standard Statements Comparison ReportsStandard Income Statement for the Year Ended 30 June 2007 (cont.)

Variance Explanation Report

Note Item Explanation

1 Fees and charges (revenue) The income for the following three items have significantly exceededbudget, mainly due to factors outside the direct control of Council:• building fees• local laws fines and penalties• road and footpath reinstatementsA substantial insurance claim was also submitted by the City duringthe year.This was unbudgeted.

Fees and charges were adversely affected by drought for thetransfer station income and the closure of the Ivanhoe AquaticCentre during the peak season for urgent repairs.

2 The favourable variance of actual interest on investment tobudgeted amount was due to:• A slightly larger pool of funds available from an increase in actual

fees and charges and a decrease in actual employee benefits andmaterials and contracts compared to budget.

• A higher return from managed funds compared to last year.

3 Contributions (revenue) The public open space contributions exceeded budget by $271,000.Furthermore, unbudgeted contributions for various New Worksand Services projects were received to a total of $173,000, whichwas $111,000 above the budgeted amount.

4 Other revenue The 2006/2007 budget was set before the auditors requested thatthe transfer station special charges were to be reclassified fromother revenue to fees and charges.Transfer station incomeaccounts for $602,000 of the variance. Other movements wereimmaterial in nature.

5 The main item in the sale of assets is the sale of vehicles.The actualwas less than budget for the year as several vehicles were held atyear end pending delivery to the auction organisation.Also thenumber of vehicles replaced was less than anticipated.

6 Materials, contracts and services Contributions to shopping centres were budgeted as materials,contracts and services, however have been included in otherexpenditure.This reclassification accounts for $1.1 million of thevariance. Other variances include a significant decrease in wastedisposal costs.

7 Depreciation Major variance is the result of re-assessment of useful lives anddepreciation rates of fixed assets being done after budget was set.

8 Other expenses As stated under note 6, new works and services contributions toshopping centres were budgeted for as materials, contracts andservices, however have been reported on as other expenses,accounting for the entirety of the variance.

Proceeds sale of assets andwritten down value of assets sold

Interest on investments (revenue)



Standard Balance Sheetas at 30 June 2007


$’000 $’000 $’000 %CURRENT ASSETSCash 1 3,600 2,835 (765) 21.2Investments 1 30,396 37,821 7,425 24.4Trade and other receivables 3,630 3,255 (375) 10.3Inventories 32 29 (3) 9.4Infrastructure work in progress 2 - 2,033 2,033 100.0Other 200 405 205 102.5

TOTAL CURRENT ASSETS 37,858 46,378 8,520 22.5

NON- CURRENT ASSETSTrade and other receivables 230 276 46 20.0Investments 1,849 1,747 (102) 5.5Infrastructure, property, plant and equipment 3 779,538 703,747 (75,791) 9.7

TOTAL NON- CURRENT ASSETS 781,617 705,770 (75,847) 9.7

TOTAL ASSETS 819,475 752,148 (67,327) 8.2

CURRENT LIABILITIESTrade and other payables 4 4,940 6,692 (1,752) 35.5Provisions 5 2,480 7,099 (4,619) 186.3Other 6 1,847 494 1,353 73.3

TOTAL CURRENT LIABILITIES 9,267 14,285 (5,018) 54.1

NON-CURRENT LIABILITIESTrade and other payables 260 232 28 10.8Provisions 5 4,180 624 3,556 85.1Other 315 336 (21) 6.7

TOTAL NON-CURRENT LIABILITIES 4,755 1,192 3,563 74.9

TOTAL LIABILITIES 14,022 15,477 (1,455) 10.4

NET ASSETS 805,453 736,671 (68,782) 8.5

Represented by:EQUITYAccumulated surplus 7 372,694 380,903 8,209 2.2Reserves 8 432,759 355,768 (76,991) 17.8

TOTAL EQUITY 805,453 736,671 (68,782) 8.5

129

Banyule City Council Standard Statements Comparison ReportsStandard Balance Sheet as at 30 June 2007 (cont.)



1 Cash and investments (current) The increase in pool of funds available for investment was due to:

• Grants received in advance.

• New works and services projects carried forward to next year.

• Slightly greater than anticipated actual income received comparedto budget for fees and charges.

• A reduction in actual expenditure for employee benefits.

• A reduction in actual expenditure for materials and contractors.

2 Infrastructure work in progress was included in the non currentcategory for the 2006/07 budgeted result.The actual result for2006/07 is included in the current assets category.

3 As the budget is prepared before the annual accounts, theestimated budgeted starting point for infrastructure, property, plantand equipment was overstated.The 2006 revaluation of assetsresulted in a decrease instead of the expected increase in the valueof assets.

A review of the useful lives of assets resulted in a decrease indepreciation expense from a budgeted $12.750m to an actualresult of $10.299m.

The written down value of sold assets (mostly vehicles) wasbudgeted as $1.840m, but came in at $1.081m.

$374k of capitalised works were included in the operating budgetwhich is not included in the actuals in the standard statements.

4 The $1.75m actual increase compared to budget is mainlyexplained by many major projects being completed between Mayand June 2007.They have caused a significant increase in creditorliabilities.The variance is also a result of many contributions fromother councils and other income received in advance.

Trade and other payables(current)

Infrastructure, property, plant andequipment (non current)

Infrastructure work in progress(current)


Banyule City Council Standard Statements Comparison ReportsStandard Balance Sheet as at 30 June 2007 (cont.)

Variance Explanation Report (cont.)


5 Comparing the total of current and non-current employee benefitsprovisions, the actual is $1.06m higher than budget.This is due tothe difference in forecast and the amount of leave actually takenduring the year.Also the actual balance of the provision wascalculated based on next year hourly rate while budget being seton the current year hourly rate.

• The actual current provision has complied with internationalaccounting reporting standard since last financial year whilebudget was set before due time for the compliance.The differentclassification treatment in the provision between budget andactual has resulted in the actual variance of $4.62m.

• The actual non-current portion of the provision has decreased by$3.56m due to increase in the current provision.

6 Other current liabilities Other current liabilities relates to deposits, bonds and trust fundsheld at balance date.

The budget allowed for two situations to occur.The refund of largedeposits and the receipt of some new deposits and bonds.The netof these two was an expected reduction of $1.2 million from theprevious balance sheet figure.The receipt of bonds and deposits isoutside the control and influence of Council.

The actual situation was that basically neither occurred.The netmovement of current liabilities was a reduction of $162,000.Themain reduction was a transfer of funds to the Primary CarePartnership.The movement in the non-current other liabilitiesactual balance was minimal from last year and was very close tothe budget figure at year end and did not have an effect on thecurrent liabilities situation.

7 Accumulated surplus The variation between the budgeted loss and the actual surplus andthe differences between transfers to and from the asset reserveshave caused this variance.

8 Reserves Major difference is caused by asset revaluation reserve difference(as discussed in Note 3) from the previous financial year.A minorfavourable variance was due to some major works, funded by assetreserves, continuing into the new financial year.

Provisions (current and non current)

131


Standard Cash Flow Statement for the Year Ended 30 June 2007


$’000 $’000 $’000 %Cash Flows from Operating ActivitiesReceiptsReceipts from ratepayers 45,923 46,062 139 0.3Interest received 2,163 2,584 421 19.5Grants and subsidies received 12,108 12,415 307 2.5Other receipts 1 19,846 21,658 1,812 9.1

PaymentsPayments to employees 2 (38,038) (36,088) 1,950 5.1Payments to suppliers 3 (36,121) (34,346) 1,775 4.9Proceeds from deposits held 4 (4,108) (132) 3,976 96.8

Net Cash Inflow/(Outflow) from Operating Activities 1,773 12,153 10,380 585

Cash Flows from Investing ActivitiesAcquisition of property, plant and equipment 5 (2,661) (4,091) (1,430) 53.7Expenditure on infrastructure assets 5 (7,000) (5,485) 1,515 21.6Proceeds from sale of property, plant and equipment 6 1,845 1,253 (592) 32.1Net (purchase)/redemption of investments 7 6,043 (6,309) (12,352) 204

Net Cash Inflow/(Outflow) from Investing Activities (1,773) (14,632) (12,859) 725

Net (Decrease)/Increase in Cash and Cash Equivalents - (2,479)

Cash and cash equivalents at the beginning of the year 3,600 5,314

Cash and Cash Equivalents at the end of the year 3,600 2,835

Reconciliation of Net Result and Net Cash Flows from Operating Activities for the Year Ended 30 June 2007Net (deficit) from operations (6,444) 25Depreciation 12,750 10,299Decrease in value of Library investment - 118Loss/(Profit) on sale of infrastructure, property, plant and equipment (5) (172)Net movement in assets and liabilities (4,528) 1,883

Net Cash Inflow/(Outflow) from Operating Activities 1,773 12,153


Banyule City Council Standard Statements Comparison ReportsStandard Cash Flow Statement for the Year Ended 30 June 2007 (cont.)



1 Other receipts Actual fees and charges were greater than budget for the threeitems listed in note 1 for the Standard Income Statement.Theactual movement in receivables and payables was virtually the sameas the budgeted movement.

2 Payment to employees The variance was caused by two factors. Firstly actual employeebenefits (salaries and oncosts) were lower than budget. Secondly,the increase in employee benefits provisions, annual leave and longservice leave, was greater than the budgeted increase.Theprovisions increased due to increased entitlements and increases inpay rates and movements through pay bands.

3 Payment to suppliers The balance of prepayments at year end was significantly less thanlast year, due to insurances and an asset purchase deposit beingpaid last year, while the budget did not provide for any change.Thetrade and other payables balance, including accruals, increased a net$473,000 compared to last year while the budget increase was$50,000. Materials and contracts expense was less than budgetwhich accounted for the majority of the balance of the variance.

To accurately predict the balance of prepayments, creditors andaccruals is dependent on many factors.The balance at year enddepends on scheduling of works, weather conditions, expectationsof suppliers and timing issues compared to the previous year.

4 Proceeds from deposits held The aged care facility was sold on 30/6/2006.The accommodationbonds were transferred to the new owners late last financial year.The budget reflected the cash outflow in the current financial year.

5 The actual of $9,576,000 compared to the budget of $9,661,000has resulted in a net combined variance of only $85,000.

6 The main item is the sale and auction of vehicles and items of plant.The actual was less than budget for the year as several vehicleswere held at year end pending delivery to the auction organisation.

Proceeds from sale of property,plant and equipment

Acquisition of property, plant andequipment and expenditure oninfrastructure assets

133

Banyule City Council Standard Statements Comparison ReportsStandard Cash Flow Statement for the Year Ended 30 June 2007 (cont.)

Variance Explanation Report (cont.)


7 The variance of $12,352,000 between actual and budget is due tovariations in assumptions applied in the budget process in the pasttwo years.

Initially during the 2006/2007 budget process it was anticipated thatinvestments would be redeemed to provide an inflow of approx $6million for the expenditure expected with the GreensboroughProject.

Investments have increased by approximately $6 million, that is acash outflow due to the following reasons:

• the delay in commencement of the Greensborough Project;• additional new works and services projects being delayed and

carried forward to the next financial year;• higher fees and charges income, compared to budget;• a reduction in expenditure for employee benefits compared to

budget;• a reduction in expenditure for contractors and materials

compared to budget.

Net (purchase)/redemption ofinvestments


Standard Statement of Capital Worksfor the Year Ended 30 June 2007


$’000 $’000 $’000 %New Works and Services

Capital WorksFreehold land 50 331 (281) 562Freehold buildings 2 1,525 1,009 516 33.8Plant and equipment 40 383 (343) 858Motor vehicles 3 1,735 3,712 (1,977) 114Furniture and fittings - 17 (17) 100Art collections and heritage - 23 (23) 100Road, streets and bridges 4 3,526 2,626 900 25.5Drainage 261 147 114 43.7Parks and gardens 5 1,638 804 834 50.9Work in progress 450 690 (240) 53.3

Total Capital Works 1 9,225 9,742 (517) 5.6

Other non capital works 5,098

Total New Works and Services Program 1 14,323

Type of Capital WorksRenewal of assets 5,641 6,793Upgrade of assets 467 329Expansion of assets 1,007 567New assets 2,110 2,053

Total Capital Works 9,225 9,742

Note:Actual Capital Works 9,368Additions to assets from operating budget 374

Total asset additions per note 10(ii) 9,742

Infrastructure, property, plant and equipment movementTotal capital works 9,225 9,742Depreciation (12,750) (10,299)Written down value of assets sold (1,840) (1,081)

Net movement in infrastructure, property,plant and equipment (5,365) (1,638)


Banyule City Council Standard Statements Comparison ReportsStandard Statement of Capital Works for the Year Ended 30 June 2007 (cont.)



1 Capital works The variance between the budget of $9.23m and actual of $9.74mwas due to the carry over of projects from the previous year.

2 Freehold buildings $355k of the budgeted works on the Meals Kitchen have beendeferred to at least 2008/09 pending government funding.

3 Motor vehicles Vehicle purchases were budgeted net of sale receipts of $1.5m.Sales receipts fell short of the $1.5m budget by $247k and $200kof vehicle purchases were carried forward from 2005/06.

4 Roads, streets and bridges $727k of works that were not originally budgeted were completedin 2006/07.These works related to additional supplementary Roadsto Recovery funding. $874k worth of projects have been carriedforward to the 2007/08 financial year pending further investigationor community consultation whilst others have been delayed, arenot proceeding or cost less than originally budgeted and weresubsequently expensed.

5 Parks and gardens The drought has caused some projects to be carried forward tothe 2007/08 financial year awaiting more favourable climaticconditions. Playground replacements and further works onMalahang Reserve have also been carried forward.

Note: Reclassification of budgets between capital works categories occurs between the time the Budget is adopted and the end ofthe year as more in depth analysis of the expenditure types occurs and decisions are made whether or not to capitaliseexpenditure.The overall budget is not changed because of these reclassifications between categories.

135


Banyule City Council Standard Statements Comparison Reportsfor the Year Ended 30 June 2007

137

In my opinion the accompanying standard statements havebeen prepared on accounting bases consistent with thefinancial statements and in accordance with the LocalGovernment Act 1989 and the Local Government (Financeand Reporting) Regulations 2004.

PRINCIPAL ACCOUNTING OFFICER:KEITH YEO FCPA


In our opinion the accompanying standard statements havebeen prepared on accounting bases consistent with thefinancial statements and in accordance with the LocalGovernment Act 1989 and the Local Government (Financeand Reporting) Regulations 2004.

As at the date of signing, we are not aware of anycircumstances which would render any particulars in thestandard statements to be misleading or inaccurate.

We have been authorised by the Council on Monday,17 September 2007 to certify the standard statements in their final form.





CHIEF EXECUTIVE OFFICER:DOUG OWENS



Certification of Standard Statementsfor the Year Ended 30 June 2007


Banyule City Council Standard Statements Comparison Reports for the Year Ended 30 June 2007

Auditor General Victoria Independent Audit Report

139

Banyule City Council Standard Statements Comparison Reports for the Year Ended 30 June 2007Auditor General Victoria Independent Audit Report (cont.)


July 2006

• Winter in Banyule annual arts festival. Broad range of artmusic, dance heritage and film events in locations allaround the district.

• Banyule business Seminars held throughout the city –Strategic Business Planning Workshops; women’s Accessto Finance; Financial Management for Small Business;eBusiness Networking and Information sessions andBuying a Franchise/Small business. Linked with businessbreakfasts throughout the year.

• Best Value Plus certification presentation – quality,Occupational Health & Safety and EnvironmentalManagement Standards attained.

August 2006

• Greensborough Project launched by The Hon Rob HullsMP.

• Winter in Banyule Festival – wide ranging program of artsevents, local artists, busking in the streets andmulticultural music concerts.

• Citizenship Ceremony.

September 2006

• Banyule business Breakfast – networking for traders.Quarterly throughout the year with guest speakers.

• Spring Night Outdoors Program of environmental events– September to November. Includes sustainable gardentours, breakfast walks, bird spotting in bush florareserves, Eltham Copper Butterfly counts and more.

October 2006

• Mayor’s Corporate Golf Cup.Attended by Banyulebusiness people.


November 2006

• Manna Gum Festival, Poulter Reserve. Celebration ofcommunity, life and culture in the north of themunicipality – engaging the local community asperformers, stall holders, volunteers and visitors.

• Toys for Tots Annual Campaigns – helps families each yearat Christmas.

• Olympic Village celebrates 50 years.

• Neighbourhood Street Party launched.

December 2006

• International Day of Disability – various events, businessbreakfasts.

• Boulevard Christmas Lights.

• Carols by Candlelight on the Boulevard.

• Summer in the Parks – free summer activities andentertainment.

January 2007

• Australia Day Citizenship Ceremony.

• Jagajaga – Annual Community Australia Day Awards.Token of thanks to residents who work tirelessly for thecommunity in a variety of roles in conjunction withNillumbik Council.

February 2007

• Greensborough Festival – two day event – food, fun,entertainment and music.

• Bushland Nature Walks featuring guided evening walks.Information such as vegetation communities, natural andintroduced, and ongoing management issues.


Calendar of Council and Community Events

141

March 2007

• Banyule Festival – incorporating Old England HotelOutdoor Sculpture Award,Twilight Sounds at Sills Bend,Heidelberg Central Trader’s Grand Parade and Kids’Artyfarty Fest. Arts, wine, food and music festival.

• International Women’s Day with Nelly Thomas.

April 2007

• Citizenship Ceremony. First of four scheduled for 2007 –over 327 Banyule residents.

• Australian National Band Championships – staged at The Centre Ivanhoe, attended by more than 400 soloistsand 87 bands with many coming from interstate andoverseas.


• 70th Anniversary of Heidelberg Town Hall – celebratedby Mayoral Charity Ball.

May 2007

• Aboriginal Flag Raising ceremony for NationalReconciliation Week.

• Entangled Encounters – Art Exhibition.

• Volunteer Awards – as part of National Volunteers weekBanyule gave a tribute to the many exceptionalvolunteers of Banyule.

• Ivanhoe Annual fiesta – family fun, with live music andwandering entertainment.

• Banyule Community Volunteer Awards – tribute tovolunteers throughout the city.

June 2007

• Community Grants Presentation – recognisingcommitment to community groups, organisations andindividuals.


Banyule City Council Annual Report 2006-2007Calendar of Council and Community Events (cont.)


Advisory Committees The main function of an advisory committee is to assistCouncil in the consultative process and provide valuableinformation to support the decision making of Council.Each year Council appoints Councillor representation toa number of advisory committees.Their role in relationto these committees is representation, advocacy andconsultation.

Auditor GeneralAn independent officer of the Parliament, appointedunder legislation, to examine and report to Parliamentand the community, on the efficient and effectivemanagement of public sector resources, and provideassurance on the financial integrity of Victoria’s system ofgovernment.

Best ValueState government legislation that requires councils toreview all their services and adopt service deliverymodels that are the best on offer, to meet the needs oftheir community.

BPiBanyule BPi is a well-established building permit providerto the large volume home builders of Victoria.

CALDCulturally and linguistically diverse

Capital WorksWork undertaken on Council owned assets includingnew, expansion, upgrade, renewal or disposal.

CEOChief Executive Officer

CIP (Continuous Improvement Program)The process of ensuring that review and improvementpractices are built into operational activities.

Corporate GovernanceTaking responsibility for the economic and ethicalperformance of the municipality, the underlying principlesof which are openness, inclusion, integrity andaccountability. Governance differs from the everydaymanagement of affairs, in that it identifies the strategicdirections for the organisation and implements thecontrols and checks, which enable the governing body tomeasure management’s performance.

City PlanA document guiding Council’s activities for a four yearperiod.

Council AssetAn asset is a physical component of a facility that hasvalue, enables a service to be provided and has aneconomic life greater than 12 months.

EFTEquivalent Full Time, relating to staffing numbers.

Financial YearThe period of 12 months beginning on 1 July and endingon 30 June the following year.

GISGeographic information system.

HACCHome and Community Care Services.

InfrastructureThe physical “skeleton” required to enable thecommunity to be connected and operational. Thisincludes roads, drains, footpaths and public open spacesas well as public facilities and buildings.

Internal AuditAn independent appraisal function to examine andevaluate Council’s financial, management and internalcontrol systems.

MAVMunicipal Association of Victoria is the peak representativeand lobbying body for Victoria’s 79 councils.

PAGPlanned Activity Group - social groups for frail olderadults which provide an opportunity to meet and enjoythe company of others in a supported group situation.

S2S E-referral serviceSecure electronic method of transferring clientinformation to other service providers.

SustainabilityMeeting the needs of the present community withoutcompromising the ability of future generations to meettheir own needs.A sustainable community seeks to protectand enhance the environment, meet social needs andpromote economic success.A sustainable organisationintegrates economic, environmental and socialconsiderations into the heart and soul of its business.

TargetsEach year the Council sets indicators to measureperformance against the City Plan. Each of theseindicators also has a targeted level of performance thatis expected to be met or exceeded throughout the year.

VLGAVictorian Local Governance Association – arepresentative body for councillors from Victorian localgovernment.

WardsThe geographical area of Banyule is broken into sevensections named wards. Each ward has an electedrepresentative.


Glossary

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How to contact your Council

For all enquiries or information about any Council services:

Telephone

9490 4222E-mail

[email protected]

www.banyule.vic.gov.au

TTY 9432 7211

Postal Address:PO Box 51, Ivanhoe, 3079DX 97904 IvanhoeFax No: 9499 9475

Council has three Service Centres at the following locations:Ivanhoe: 275 Upper Heidelberg RoadRosanna: 44 Turnham AvenueGreensborough: 9 - 13 Flintoff Street

Office Hours of Opening:All Offices are open:Monday to Friday 8.30am - 5.00pmRosanna - Wednesday night until 7.00pmGreensborough - Saturday 9.00am - 12.00pm