annual report 2008-09 · hepburn shire council page 4 annual report 2008-2009 mayor’s report in...

ANNUAL REPORT

2008-09

Hepburn Shire Council Annual Report 2008-2009

3 Our Shire4 Mayor’s Report5 CEO’s Report6 The Year in Review

Strengthening Communities .........................................6Service Delivery .............................................................6Assets and Resource Management ...............................7Economic Development .................................................7Heritage and Environment .............................................8

9 Future DirectionCouncil Plan 2009-2013 ...............................................9

10 Financial SnapshotFinancial Sustainability ................................................10Operating Result ..........................................................10Capital Expenditure......................................................10Cash Reserves .............................................................11Working Capital ...........................................................11Underlying Result .........................................................11

12 Our CouncilOur Councillors ............................................................12Governance .................................................................14Committees of Council .................................................14Audit & Risk Committee ...............................................14Services Provided ........................................................15Statutory Information ...................................................16Best Value ...................................................................16

17 Our PeopleThe Executive Management Team ...............................17Our staff ......................................................................19Service Awards ............................................................19Our Volunteers .............................................................19Traineeships ................................................................19

20 Strengthening CommunitiesHealthier Communities ................................................20Dollars for Community ................................................20

22 Service DeliveryIncreasing Satisfaction ................................................22

24 Asset and Resource Management26 Economic Development28 Environment and Heritage30 Community Grants and Awards

Australia Day Awards ...................................................30Hepburn Shire Women’s Honour Roll Grows ................30Youth Recognition Awards ...........................................302008-09 Community Grants ........................................31

34 Victorian Government Indicators35 Performance Statement36 Plain English Guide to the Financial Statements

What is contained in the Financial Report? ..................3639 Annual Financial Reports

Contents

Page Page


Our ShireWorking for our Community

Just over an hour from Melbourne, in central Victoria, you’ll find Hepburn Shire. About 15,000 people (June 2006) enjoy the advantages of living in Hepburn and with a healthy growth rate of 0.5%, the population is projected to reach 17,000 by 2021.

Residents are well dispersed around the shire with 45% living in over 30 small towns, villages and across the rural landscape. Just over half of the population chooses to live in the shire’s main towns of Daylesford/Hepburn Springs with 3,500 residents, Creswick with 2480, Clunes with 920 and Trentham with 710 residents.

Given the proximity to Melbourne and major regional centres, with Ballarat to the west and Bendigo to the north, Hepburn is an attractive location for those wanting to make a move to provincial Victoria to live, work and invest.

Over recent years the economy has diversified. While agriculture, forestry and manufacturing remain important, there has been rapid growth in new sectors including tourism, arts and culture, service industries, retail, education, health and community services.

The Hepburn Shire region is renowned for its natural beauty and 80% of Australia’s mineral spring reserves. Not only are the reserves significant for their geological and hydrological features, but also as a major draw card for hundreds of thousands of visitors.

Not surprisingly, Hepburn is known as the ‘spa capital of Australia’, and this underpins the local tourism industry. Visitors come to relax and enjoy the complementary experiences on offer including local art,

culture and heritage and the many parks, reserves and native forests.

To the east the Shire is hilly with high rainfall levels and significant native forest areas. The west is characterised by rolling hills, medium to lower rainfall and broad acre farming land. The total area of the Shire is 1,470 square kilometres. The Shire’s heritage is rich, varied and reflected in the makeup of our community today. The clans of the Djadja Wurrung people were the original inhabitants of the region, occupying the country between the Avoca and Loddon Rivers. The breached volcanic cone of Mt Franklin was a significant ceremonial site and numerous tools and implements used by Aboriginal people have been discovered on surrounding farmland.

The Shire’s townships also have their own unique stories and natural features. Trentham is home to Australia’s highest single drop water fall, Creswick has carved out a name for itself as the home of forestry and artist Norman Lindsay, and Clunes is the first registered gold strike town in Victoria.

1


Mayor’s Report

In the face of external challenges, such as bushfire, global financial crisis, reduced rainfall and a downturn in the domestic tourism industry; Hepburn Shire Council has focused on achieving results that will pay dividends for our community in the future.

We leveraged our limited resources to gain significant state and federal funding across a range of Council service areas and continued to build strong networks and collaborations that assist us in achieving our goals.

The re-opening of the Hepburn Springs Bathhouse was a highlight of the year. A total of $10.6m (including Council’s contribution of $1.2m) was spent to bring this icon of the region up to an international standard.

Daylesford is at the heart of Tourism Victoria’s new “Lead a Double Life in Daylesford” campaign and will benefit from $7.3m in advertising. Council has also worked in partnership with local tourism operators and businesses to establish a local Hepburn Shire Tourism Board known initially as Destination Daylesford, which will position Hepburn Shire to benefit from tourism for years to come.

In recognition of the importance of the agriculture sector and in what is a first for the state, we formed an agriculture advisory committee.

To counter the effects of a revaluation that saw 25% increases in the value of farmland, Council reduced the rate differential for farmland, which effectively capped their rate increase to 6%. Council also introduced a pensioner rebate.

Planning for positive outcomes to support families and communities is of critical importance and Council developed strategies to assist our youth with its Youth Policy and Municipal Early Years Plan and our ageing population with the Positive Ageing Strategy.

Council’s limited resources available to apply to our ageing infrastructure – such as our roads, bridges and buildings, means we strategically prioritise the works we undertake and continue to seek and receive external grants in what is an increasingly

competitive environment. In late 2008 the Federal Government allocated $425,000 for infrastructure projects within the Shire and in June 2009 announced a further $165,000 for economic stimulus.

We have completed Stage 1 of the redevelopment of Creswick Town Hall and $2.2m in external funding has been announced for the Doug Lindsay Recreation Reserve.

I would like to thank my fellow Councillors for their support and teamwork and acknowledge the contribution of outgoing councillors David Smith and Heather Mutimer.

Our Chief Executive Officer Kaylene Conrick continues to lead her professional team to deliver on our policies and strategic direction. I thank her for her commitment and the considerable progress achieved in this past year in addressing the many human resource and financial challenges of a small rural shire.

Councillor Bill McClenaghan Mayor

2


CEO’s Report

The development of the Council Plan 2009-2013 attracted an unprecedented response from engaged and passionate people who care about a sustainable future for Hepburn Shire. The extensive consultation process resulted in 40 submissions and 120 attendees at six public meetings, including 18 who attended our first ever consultative meeting in Melbourne for non-resident ratepayers.

A new organisation structure, that eliminated one level of management, was introduced during the year to improve our efficiencies and effectiveness in delivering results.

The four departments of Sustainable Development, Corporate Services, Community Development and Infrastructure and Asset Management, closely align to the strategic objectives of the Council Plan and are each headed by a General Manager.

Council meetings were reviewed and are now conducted at locations around the Shire to provide improved opportunity for community engagement. A Delegated Planning Committee was introduced to deal specifically with the critical issues of planning and development.

Council developed a number of new policies and strategies to deal with challenges faced by our community and to improve and enhance Hepburn Shire Council as a workplace. The new depot will improve economies of scale and efficiencies and provide a better work environment for our outdoor staff.

We received a large number of grants, awards and recognitions over the past year; a wonderful sign that we, as an organisation, have the capacity to look outwardly for opportunities to enhance the work we do locally.

I congratulate Council’s staff and volunteers for their contribution to the wellbeing of all our residents, ratepayers and visitors. The team we have built is capable and results focused.

The improved results in the local government community satisfaction survey are pleasing and indicate we are on the right path, albeit with more work to do.

I would like to thank Mayor Cr McClenaghan and all of the councillors who served over the past year, for their support and confidence.

It is extremely satisfying to reflect on the achievements of the past year as we move forward with confidence to pursue the objectives outlined in our Council Plan.

Kaylene Conrick Chief Executive Officer

3

The Year in Review4

Strengthening Communities Highlights

Completed the three year Hepburn Healthy Communities •project

Allocated $40,000 of grants to 46 community groups •

Finalised Stage One of the Creswick Town Hall •redevelopment

Adopted the Hepburn Shire Youth Policy •

Developed the Municipal Early Years Plan and Positive •Ageing Strategy

Appointed an Emergency Recovery Community Development •Coordinator

Assisted 20 events including Chillout, Booktown and Words •in Winter

Developed Community Plans for four communities •

ChallengesDevelopment of the Positive Ageing Strategy and the •Municipal Early Years Plan slightly delayed due to changeover of councilors and the need to fully brief new councillors in these key strategies

The February 2009 fires created a number of challenges for •the community and Council. Council responded as quickly as possible to establish a Relief Centre and later a Recovery Centre to assist affected communities

Service DeliveryHighlights

Delivered 56,660 hours of service in Home & Community •Care

Improved overall performance in Community Satisfaction •Survey

Implemented Front SEEAT Transport Connections project •

Received confirmation of $2.2m of funding for Doug Lindsay •Recreation Reserve

Contributed to the development of the Grampians Region •Personal Care Protocol

Implemented water saving and climate change initiatives•

Improved sports & recreational services and facilities•

Constructed 4 new community notice boards (Creswick, •Newlyn, Lyonville and Yandoit)

Formed the Footpath Trading and Access for All Reference •Group

ChallengesAlthough there has been an increased focus on community •engagement and Hepburn’s overall performance has shown an improvement, the Community Satisfaction Survey results are still at the lower end when compared to other “like” shires

Changes to the Customer Service model was postponed until •the new organisational structure was in place. Customer service feedback forms were developed and made available in May 2009



Assets and Resource ManagementHighlights

Committed $250,000 to infrastructure gap funding for asset •renewal, comprising replacement of 2 bridges and 1 major culvert

Commenced works for the relocation of the Daylesford •Depot, to replace the old Hepburn and Wombat Hill depots

Improved footpath access within the urban centres of the •municipality

Completed conservation tree management works within the •Wombat Hills Botanical gardens

Purchased new, fuel efficient and operator friendly •maintenance grader

ChallengesEstablishing program for capital footpath program with •timelines that allow consideration of design, community consultation, planning permit and construction

Tight timelines to complete stimulus package capital works •of $425,000 by September 2009

Completion date for relocation to Daylesford Depot extended •to October 2009

Developing a motor vehicle policy that balances •organizational needs with lower CO2 emissions

Economic DevelopmentHighlights

Reopened the Hepburn Springs Bathhouse with award •winning building design

Completed the Creswick Interpretive Centre•

Announced successful tender for the Wombat Hill Botanic •Gardens Kiosk

Created the Destination Daylesford Tourism Board •

Implemented the Daylesford and Creswick Visitor Centre •Websites

Launched the Tourism Victoria Advertisement Campaign•

Developed management plans for recreation reserves•

Established first Agricultural Advisory Committee•

ChallengesImplementing strategies to mitigate negative external •influences such as the global financial crisis that has resulted in decreased visitor numbers

Bushfire season fires have had an effect on numbers of •visitors and perceptions of safety in the region

4 | The Year in Review (continued)


4 | The Year in Review (continued)

Heritage and EnvironmentHighlights

Won two categories at the Eco Buy purchasing awards •

Introduced inaugural Sustainability Community Grants•

Completed the Wombat Hill Botanic Garden Recycled project•

Adopted the Hepburn Shire Council Waste Wise Program•

Implemented the Clunes & Newlyn Recreation Reserves •stormwater and solar hot water project

Introduced the Pure Local Energy project for domestic solar •power

Completed redevelopment & heritage works at Clunes •Library, Clunes Museum, Clydesdale Hall & Frankinford Hall

ChallengesContinued impact of drought and climate change affecting •the built and natural environment systems as well as rural/farming viability

Continued demand for residential living in rural areas •reduces availability of agricultural land, natural environment, and fauna/flora corridors

Daylesford / Musk Vale FireThe Daylesford / Musk Vale fire started at approximately 3pm on Monday 23 February on the edge of the Ballan-Daylesford Rd, Sailors Falls, and became known as the Hogans Road, Musk Vale fire. The fire threatened Daylesford at various times during the evening. By 10pm that night, the fire had gained strength and with a wind change, headed east and threatened properties along the Daylesford-Trentham Rd and smaller villages of Musk and Bullarto. A relief centre was opened at the Daylesford Town Hall at 5pm on 23 February. Approximately 20 people and their pets stayed at the centre that night. Over 500 people were registered by the Red Cross during the emergency. Many residents left Daylesford on the evening of 23 February, while others from Glenlyon, Coomoora and Wheatsheaf went to the relief centre in Kyneton. Some residents went as far as Bendigo.

The fire was brought under control on Wednesday 25 February, but continued to burn for some days afterwards. Windy conditions on two total fire ban days kept authorities and residents on high alert. Firefighters from the ACT were brought in to assist with the campaign.

ImpactAbout 2,300 hectares were burnt – approximately 650ha of private land, including 450 ha of grazing/pasture land, and 1,650 ha of Crown Land. Around 140kms of fencing, 1 dwelling and 25 other structures, including hay sheds and other sheds were destroyed or damaged. Approximately 100 head of stock including alpacas, sheep, cattle and poultry died or were destroyed after the fire and 1,500 tonnes of hay or silage were destroyed. Some 20ha of hardwood plantations, 8ha of softwood plantations and 4ha of olive trees were destroyed. The fire affected over 70 individual properties in some way.


Future Direction

Council Plan 2009-2013 After extensive community consultation, the Council Plan July 2009 to 2013 was adopted by Council, at its Special Meeting held 30 June 2009.

The Plan identifies what’s important to our citizens and outlines what we intend to achieve over the next four years within the context of four fundamental commitments:-

1. We will deliver good governance to the Hepburn ShireFive essential ingredients, required for good governance, need immediate and sustained attention.

A sound working relationship between councillors and shire •management

Long term financial sustainability for the future•

Effective community engagement •

Transparent decision making•

Strong advocacy for Hepburn Shire.•

2. We will help improve economic prosperityCouncil is committed to helping our citizens achieve economic prosperity. Hepburn Shire residents need access to local jobs and opportunities to invest in local businesses. We will work to support established and strong business sectors, including retail, manufacturing, health and community services, agriculture, tourism and forestry, and encourage sustainable sector growth.

3. We will assist our residents improve the health, safety and vibrancy of our communities

There are many communities of interest in the Hepburn Shire, so a ‘one size fits all’ planning approach will not succeed. Community based planning will recognize community attributes, personality and aspirations, will build the capacity of our local communities and create places which are highly valued by residents. We think the plans that communities prepare for themselves should guide Council’s development priorities.

4. We will guide our Shire towards environmental sustainability

To promote the importance of reducing our carbon emissions, Council’s role must be focused on leadership, policy development, innovation and behavioural change programs. We have the opportunity to use our rating and other processes to encourage and create new kinds of environmentally sustainable practices in homes and businesses.

Overall, the Council Plan 2009-2013 outlines 75 strategies to deliver our commitments and identifies how we will measure our success or otherwise. The Strategic Resource Plan 2009-2013 identifies the financial and other resources necessary for the Plan’s implementation.

5


6 Financial Snapshot

Financial SustainabilityWhile Hepburn Shire is a relatively small Shire when measured by population or revenue, it is responsible for managing $148 million of community assets.

There is a significant gap between the amount of funds expended on renewal of these assets and the amount required to maintain service levels.

This infrastructure gap is being addressed through ongoing identification of operational efficiencies and increased revenue generation. In line with Council’s rating strategy, the amount of revenue derived from rates in 2008-09 was increased by 8.3%.

By increasing rate revenue by an average of 8.3% per annum, Council aims to generate an additional $250 thousand to be invested in asset renewal.

Operating ResultFor the year ended 30 June 2009 Hepburn Shire Council made an operating surplus before non operating items of $3.8 million, this was against a budget of $660 thousand. The increase in the surplus was due to a number of additional grants and non-monetary items that impacted significantly on revenues including $328 thousand from road constructions, and an increase in revenues from user charges and fines ($337 thousand), Federal Government stimulus package ($1.5 million) and early payment of the first quarter of the 2009-10 recurrent grant ($858 thousand). The surplus after non operating items, including the transfer of land & buildings back to Council in relation to the Bathhouse redevelopment ($8.9 million), was $12.8M.

Capital ExpenditureCapital works of $5.8 million were completed during 2008-09 against a budget of $6.8 million. A number of projects were carried over into 2009-10 including the new Council Depot (expected completion October 2009), deferral of the construction of the rotunda in Collins Place to coincide with additional works funded through the federal stimulus package and a change in the replacement policy for Council’s fleet, which extends the period of use.

-4

-2

0

2

4

2008-092007-082006-07

Unde

rlyin

g su

rplu

s / -

defic

it $M

0

1

2

3

4

2008-092007-082006-07

Wor

king

cap

ital $

M

Working capital

Capital works

Underlying results

1.99

1.111.49

0

5

10

15

2008-092007-082006-07

capi

tal w

orks

$M

5.806.42

4.23

Cash reserves

0

2

4

6

8

10

2008-092007-082006-07

cash

on

hand

$M 5.60

3.943.96

Rates

0

2

4

6

8

10

2008-092007-082006-07

% ra

te in

crea

se

8.38.9

8.3 Operating Results

-6

-4

-2

0

2

4

6

8

10

12

2008-092007-082006-07

surp

lus

/ -de

ficit

$M

11.23

-0.94-4.30

-0.74-1.90-2.89

0

10

20

30

40

50

60

70

80

90

EFTTotal

VacantFemaleMale

Staff by Gender

7

64.369

80

50.5

6.6

0

20

40

60

80

100

120

140

160

TotalVacantFemaleMale

TotalCasualPart TimeFull Time

Staff by Tenure and Gender

0

25

6

91

60

7

48

1

56

72

9

6980

7

156

0

20

40

60

80

100

120

140

160EFT

total

Fund

edPr

ojec

ts

Tota

l

Sust

aina

ble

Deve

lopm

ent

Corp

orat

eSe

rvic

es

Com

mun

ityDe

velo

pmen

t

Infra

-st

ruct

ure

Exec

utiv

eOf

fice

Number of staff & EFT by Department

22.5

4040

4

29.6

52

2533

20.8 25.4

154

119.5

2

EFTTotal


6 | Financial Snapshot (continued)

Cash ReservesThe increase in cash and cash investments as at 30 June 2009 was directly attributable to early payment of the 2009-2010 recurrent grant ($858 thousand) and grants received from the Federal Government stimulus package ($1.5 million). After taking these additional funds into account, the cash position at the end of the year was in line with previous years.

Working CapitalThe working capital ratio measures the level of current assets Council has to meet its current liabilities. The ratio for 2008-09 is above the target set in Council’s 10 year financial plan of 1.4. The improved ratio is however mainly as a result of funds received from the Federal Government stimulus package ($1.5 million) and early payment of the first quarter of the 2009-10 recurrent grant ($858 thousand).

Underlying ResultThe underlying result shows the financial position of Council after non cash contributions and other non recurring grants. The underlying result for 2008-09 shows a significant improvement in Council’s financial sustainability from 2006-07 when the underlying result was a $2.89m deficit.

-4

-2

0

2

4

2008-092007-082006-07

Unde

rlyin

g su

rplu

s / -

defic

it $M

0

1

2

3

4

2008-092007-082006-07

Wor

king

cap

ital $

M

Working capital

Capital works

Underlying results

1.99

1.111.49

0

5

10

15

2008-092007-082006-07

capi

tal w

orks

$M

5.806.42

4.23

Cash reserves

0

2

4

6

8

10

2008-092007-082006-07

cash

on

hand

$M 5.60

3.943.96

Rates

0

2

4

6

8

10

2008-092007-082006-07

% ra

te in

crea

se

8.38.9


-6

-4

-2

0

2

4

6

8

10

12

2008-092007-082006-07

surp

lus

/ -de

ficit

$M

11.23

-0.94-4.30

-0.74-1.90-2.89

0

10

20

30

40

50

60

70

80

90

EFTTotal

VacantFemaleMale

Staff by Gender

7

64.369

80

50.5

6.6

0

20

40

60

80

100

120

140

160




0

25

6

91

60

7

48

1

56

72

9

6980

7

156

0

20

40

60

80

100

120

140

160EFT

total

Fund

edPr

ojec

ts

Tota

l

Sust

aina

ble

Deve

lopm

ent

Corp

orat

eSe

rvic

es

Com

mun

ityDe

velo

pmen

t

Infra

-st

ruct

ure

Exec

utiv

eOf

fice


22.5

4040

4

29.6

52

2533

20.8 25.4

154

119.5

2

EFTTotal

-4

-2

0

2

4

2008-092007-082006-07Un

derly

ing

surp

lus

/ -de

ficit

$M

0

1

2

3

4

2008-092007-082006-07

Wor

king

cap

ital $

M

Working capital

Capital works

Underlying results

1.99

1.111.49

0

5

10

15

2008-092007-082006-07

capi

tal w

orks

$M

5.806.42

4.23

Cash reserves

0

2

4

6

8

10

2008-092007-082006-07

cash

on

hand

$M 5.60

3.943.96

Rates

0

2

4

6

8

10

2008-092007-082006-07

% ra

te in

crea

se

8.38.9


-6

-4

-2

0

2

4

6

8

10

12

2008-092007-082006-07

surp

lus

/ -de

ficit

$M

11.23

-0.94-4.30

-0.74-1.90-2.89

0

10

20

30

40

50

60

70

80

90

EFTTotal

VacantFemaleMale

Staff by Gender

7

64.369

80

50.5

6.6

0

20

40

60

80

100

120

140

160




0

25

6

91

60

7

48

1

56

72

9

6980

7

156

0

20

40

60

80

100

120

140

160EFT

total

Fund

edPr

ojec

ts

Tota

l

Sust

aina

ble

Deve

lopm

ent

Corp

orat

eSe

rvic

es

Com

mun

ityDe

velo

pmen

t

Infra

-st

ruct

ure

Exec

utiv

eOf

fice


22.5

4040

4

29.6

52

2533

20.8 25.4

154

119.5

2

EFTTotal

-4

-2

0

2

4

2008-092007-082006-07

Unde

rlyin

g su

rplu

s / -

defic

it $M

0

1

2

3

4

2008-092007-082006-07

Wor

king

cap

ital $

M

Working capital

Capital works

Underlying results

1.99

1.111.49

0

5

10

15

2008-092007-082006-07

capi

tal w

orks

$M

5.806.42

4.23

Cash reserves

0

2

4

6

8

10

2008-092007-082006-07

cash

on

hand

$M 5.60

3.943.96

Rates

0

2

4

6

8

10

2008-092007-082006-07

% ra

te in

crea

se

8.38.9


-6

-4

-2

0

2

4

6

8

10

12

2008-092007-082006-07

surp

lus

/ -de

ficit

$M11.23

-0.94-4.30

-0.74-1.90-2.89

0

10

20

30

40

50

60

70

80

90

EFTTotal

VacantFemaleMale

Staff by Gender

7

64.369

80

50.5

6.6

0

20

40

60

80

100

120

140

160




0

25

6

91

60

7

48

1

56

72

9

6980

7

156

0

20

40

60

80

100

120

140

160EFT

total

Fund

edPr

ojec

ts

Tota

l

Sust

aina

ble

Deve

lopm

ent

Corp

orat

eSe

rvic

es

Com

mun

ityDe

velo

pmen

t

Infra

-st

ruct

ure

Exec

utiv

eOf

fice


22.5

4040

4

29.6

52

2533

20.8 25.4

154

119.5

2

EFTTotal


Our Council

Our CouncillorsThe structure of the Hepburn Shire Council changed significantly as of 29 November 2008, as a result of the Victorian Electoral Commission’s state wide Electoral Representation Review. The ward boundaries changed, and the total number of Councillors increased from five to seven. Birch and Creswick wards are now each represented by two Councillors, while Cameron, Coliban and Holcombe wards remain represented by a single Councillor.

Bill McClenaghan, Janine Booth and Tim Hayes were re-elected, with new councillors Jon Barrell, Rod May, Don Henderson and Sebastion Klein making up the seven. Council extended their appreciation to outgoing councillors David Smith and Heather Mutimer.

7Cr Bill McClenaghan was elected Mayor and Cr Janine Booth Deputy Mayor at a statutory meeting held on 3 December 2008 at which the Oath of Office was taken by the new council.

Councillors have participated in a comprehensive induction program since taking office, including workshops on roles and responsibilities, code of conduct, meeting procedures, local laws and governance, run by the Municipal Association of Victoria.

Hepburn Shire Council was one of the 40 of 79 Victorian municipalities to participate in the Top Teams Program. Councillors and Council staff participated in three workshops aimed at bringing elected representatives and management together as a team, to strengthen and unify Hepburn Shire Council.

Mayor Cr Bill McClenaghanCr Bill McClenaghan is serving his second term as Holcombe Ward Councillor and first term as Mayor. Cr McClenaghan is involved with the operation of the Spa Country Tourist Railway and its adjunct Sunday Market, as well as his own small business. Cr McClenaghan’s special areas of interest are waste management and emergency management. Committees: Municipal Fire Prevention, Municipal Emergency Management, MAV representative, Destination Daylesford Tourism Board and Director Highlands Regional Waste Management Group

Deputy Mayor Cr Janine Booth Cr Janine Booth is serving her second term as Creswick Ward Councillor and first term as Deputy Mayor. Cr Booth, a recent recipient of the Australia Post Bi-centennial Medal, has a long history with the postal service, and operates the Creswick Post Office. Committees: Recreation, Hepburn Healthy Communities, Creswick Development and ALGWA representative

Cr Tim HayesCr Tim Hayes is serving his second term as Cameron Ward Councillor. Cr Hayes lives in Clunes, where he operates a small business, as well as being actively involved in the highly successful “Back to Booktown” weekend, held annually. Committees: Culture and Arts Advisory and Central Highlands Regional Library Corporation


7 | Our Council (continued)

Cr Don Henderson Cr Don Henderson is serving his first term as Creswick Ward Councillor. Cr Henderson is a fourth generation ‘Creswickian’ and brings a background of carpentry, building and construction to Council. The natural environment and native fauna are also among Cr Henderson’s priorities. Committees: Audit & Risk Advisory, Heritage Advisory and Creswick Development

Cr Sebastian Klein Cr Sebastian Klein is serving his first term as Coliban Ward Councillor. Cr Klein has trained in permaculture and actively applies his skills throughout Hepburn Shire. The areas of youth, environment and primary production are of special interest to Cr Klein. Committees: Bobonaro Friendship Group Advisory, Youth Advisory and VLGA representative

Cr Jon BarrellCr Jon Barrell is serving his first term as Birch Ward Councillor. Cr Barrell is a GP who practises in Daylesford and Trentham. Cr Barrell and his family have lived in Coomoora since 1987. Committees: ARC Advisory, Wombat Hill Gardens Advisory and Destination Daylesford Tourism Board

Cr Rod May Cr Rod May is serving his first term as Birch Ward Councillor. Cr May is a third generation farmer, who runs a mixed organic farm at Blampied. Organic primary production is Cr May’s area of expertise; and food security, sustainability and future energy are Cr May’s areas of interest. Committees: Audit & Risk Advisory, Agricultural Advisory and Central Goldfields Greenhouse Alliance

Cr David Smith (to November 2008)Cr David Smith was first elected to Council in 1997 and served until 2003, which included three terms as Mayor. He was elected again in 2005 and served as Mayor during this term. Cr Smith also served on the Creswick Shire Council pre amalgamation. Committees: Hepburn Shire Agriculture Advisory, Municipal Emergency Management, Municipal Fire Prevention

Cr Heather Mutimer (to November 2008)Cr Heather Mutimer was first elected to Council in 2003 and served as Deputy Mayor in her first year. In her second term in 2005 she served her first year as Mayor. Committees: Heritage Advisory, Central Victorian Greenhouse Alliance, Local Government Sustainability NetworkAssets and Resource Management



Councillors’ Attendance at Council Meetings 1 July 2008 to 18 November 2008

Ordinary Meetings

(5 held)Special Meetings

(4 held) Cr Booth 5 4

Cr Hayes 5 4

Cr McClenaghan 5 4

Cr Mutimer 5 4

Cr Smith 4 4

17 December 2008 to 30 June 2009

Ordinary Meetings

(7 held)Special Meetings

(5 held)

Cr Booth 7 5

Cr Hayes 7 5

Cr McClenaghan 7 5

Cr May 6 2

Cr Henderson 7 5

Cr Barrell 7 5

Cr Klein 7 5

GovernanceCouncil’s Meeting Procedure Local Law was updated in February 2009 to be consistent with changes to the Local Government Act.

Council also made a number of improvements to the meeting structure. Meetings are now held in a number of locations around the shire, to provide greater inclusion and access opportunities for ratepayers and residents.

A Delegated Planning Committee (DPC) was established, comprising all seven councillors and chaired by the Mayor, to deal specifically with the critical issues of planning and development. The DPC provides applicants and submitters with a fair opportunity to put their case and allows councillors to focus on issues that surround applications at a dedicated forum.

Committees of CouncilCouncil could not operate effectively without the assistance of the large number of volunteers represented on Council’s Section 86 and Advisory Committees. Council currently has twelve Section 86 Committees and seven Advisory Committees as follows:

Section 86 CommitteesClunes Town Hall •

Dean Recreation Reserve•

Clunes Museum•

Creswick Museum•

Lyonville Hall•

Clunes Community Housing•

Glenlyon Recreation Reserve•

Drummond Hall•

Doug Lindsay Park Recreation Reserve•

Clunes Community Centre•

Creswick InfoLink•

Campbelltown School Ground•

Clunes Historic Medlyn Complex •

Advisory CommitteesCultural and Arts •

Youth•

Agriculture•

Wombat Hill Botanic Gardens•

Hepburn Health Communities•

Recreation•

Heritage•

Audit & Risk CommitteeComplianceThe Audit & Risk Advisory Committee is an independent advisory Committee to Council. The primary objective of the Audit & Risk Advisory Committee is to assist Council in the effective conduct of its responsibilities for financial reporting, management of risk, maintaining a reliable system of internal controls and facilitating the organisation’s ethical development.

The Audit & Risk Advisory Committee is established to assist the co-ordination of relevant activities of management, the internal audit function and the external auditor to facilitate achieving overall organisational objectives in an efficient and effective manner.

The Audit Committee meets at least quarterly and is made up of two Councillors, Cr May and Cr Henderson (Cr Hayes & Cr McClenaghan to November 2008) and three external independent members, Mr Robert Taylor (Chair), Peter Barton, Alan Meers (resigned April 2009) and Les Eastcot.

During 2008-09 the Audit Committee met five times on 19 August 2008, 25 November 2008, 23 February 2009, 6 April 2009 and 1 June 2009.

At these meetings the Audit Committee considered the following issues and reports:

2007-08 Financial Statements•

2009-10 Budget & 2009-2013 Strategic Resource Plan•

Council’s Risk Policy and Risk Register•



Accounting implications re the transfer of the Bathhouse •from DSE back to Council

2008-09 Internal Audit Program•

Internal Audit Reports on the Daylesford Visitor Centre, Asset •Management, Contract Management, OH&S Processes, and Tendering Processes

Review and update of the Audit Committee Charter•

2007-08 External Audit Program and Management Letter•

Victorian Auditor General’s Report: Enforcing Planning •Permits

Land Under Roads Accounting Policy•

Fraud Prevention and Action Policy and Whistleblowers Policy•

Equal OpportunityHepburn Shire Council is committed to providing a workplace free of all forms of discrimination, bullying and harassment. Our aim is to ensure fairness and equity in our organization, where the rights of individuals are upheld and everybody is treated respectfully and with dignity. Our policy clearly articulates Council’s commitment to a workplace which is free of any sort of harassment. The policy applies equally to staff, councillors, volunteers, contractors, service providers and community members interacting with Council.

Privacy PolicyThe Information Privacy Act 2001 (Vic) and the Health Records Act 2001 (Vic) have now been enacted. Council is committed to the principles identified in these Acts and has subsequently adopted Council Policy number 30, “Privacy Policy”.

Council’s Privacy Policy sets out Council’s commitment to protecting the privacy of the personal information it holds. A copy of Councils Privacy Policy can be obtained from Council’s website or by contacting Customer Services on 03 5348 2306.

Whistleblowers Protection Act 2001 The Whistleblowers Protection Act 2001 became operational on 1 January 2002. Council has adopted a detailed procedure document to ensure that the Whistleblowers Protection Act is fully implemented at Hepburn Shire Council.Assets and Resource Management

Services ProvidedRoads and transport Resealing, stabilisation, gravel re-sheets, shoulder sealing, table drain maintenance, linemarking, signs, footpaths, bridge rehabilitation, grading unsealed roads, minor patching on sealed roads, depot operations and plant and fleet management.

Recreation and leisure Maintenance of 13 playgrounds, 16 recreation reserves throughout the shire, swimming pools in Clunes, Daylesford

and Trentham; Calembeen Park Lake, liaison with clubs and societies, Recreation Advisory Committee, assistance and advice for events, assistance with funding for recreation groups.

Buildings Engineering design, building works & maintenance for halls, libraries, museums and other community assets, major projects construction, surveying.

Community Development Community planning, home and community care, youth services, community grants,senior citizen centres, libraries, transport evaluation and planning, arts and culture liaison and assistance, emergency recovery management, community housing, maternal & child health services.

Environmental Management & Community Amenity Environmental health, emergency management, school crossing supervision, immunisations, local laws compliance, natural resource sustainability, municipal public health plan.



Statutory InformationInformation Available For Public Inspection

Details of current Mayoral and Councillor allowances•

Details of Senior Officers’ total salary packages•

Details of overseas or interstate travel by Councillors or •Council staff in the last twelve months in an official capacity

Names of Council Officers who were required to submit a •return of interest during the financial year

Names of Councillors who were required to submit a return •of interest during the financial year

Agendas or minutes of ordinary or special Council meetings •held in the last twelve months

A list of all special committees established by Council under •section 86 of the Local Government Act 1989

Minutes of special committee meetings held in the last •twelve months

Submissions received under Section 223 of the Local •Government Act 1989, in the last twelve months

Agreements to establish regional libraries•

Register of delegations•

Register of leases that Council has entered into•

Register of authorised officers•

A list of donations and grants made by Council during the •financial year

A list of the names of the organisations of which Council was •a member during the financial year

Best ValueIn line with State Government legislation, Council’ s Best Value Program is based on six principles:

Regular community consultation•

Responsiveness to community needs•

Frequent reporting to the community •

Accessible and appropriately targeted services •

Quality and cost standards for all services•

Continuous improvement•

The Best Value model forms the base of Council’s decision making process. We require as a matter of policy, specific community engagement plans to be prepared for all important issues requiring Council resolution.

Hepburn Shire has applied the Best Value principles through the development of a number of plans and strategies during the year including the Council Plan 2009-2013, Positive Ageing Strategy and Recreation Reserve Management Plans.


Our People

The Executive Management TeamIn June 2009, a new structure was introduced replacing the former model of two directorates with four departments headed by a General Manager. Two new General Managers were appointed in June 2009, General Manager of Sustainable Development and General Manager Corporate Services. The positions of General Manager Community Development and General Manager Infrastructure have been filled for an interim period by existing employees and will be advertised later in 2009.

8Acting General Manager Infrastructure – Andrew BourkeAndrew Bourke has worked as a civil engineer for 31 years of which 26 years has been with Local Government and 10 years with Hepburn. As General Manager for Infrastructure Andrew oversees engineering, maintenance and plant and fleet services.

Acting General Manager Community Development – Martin WalmsleyMartin Walmsley has worked in the Human Services field for 25 years and has been with Hepburn Shire Council for six years. As General Manager Community Development, Martin oversees aged and disability and family and children’s services, community housing and the Community Strengthening Unit comprising youth, community development, arts and culture, transport connections, community planning and recreation.

General Manager Sustainable Development – Robert JenningsRobert Jennings joined Hepburn Shire Council on 1 June 2009. An economist and registered architect, Robert has substantial experience in sustainable development and urban design. As the General Manager of Sustainable Development, Robert oversees economic development & tourism, statutory and environmental planning, compliance and building services.

General Manager Corporate Services – Lucy RoffeyLucy Roffey also joined Hepburn on 1 June 2009. Lucy is a Chartered Accountant with extensive finance and management experience within the public sector. As General Manager Corporate Services, Lucy oversees finance, human resources, information technology, customer service, records management, governance, risk and property.


8 | Our People (continued)

Chief Executive OfficerKaylene Conrick

Executive Services Infrastructure Community

DevelopmentCorporate Services

Sustainable Development

Executive Services•

Corporate •Communications

Public Relations•

Councillor’s support•

Governance•

Infrastructure •planning

Works Depots•

Parks, Reserves and •Gardens

Building Works & •Maintenance

Road & Bridges•

Maintenance & •Construction

Engineering Design•

Plant and Fleet •Management

Waste Management•

Surveying•

Asset Management•

Street Lighting & •Cleaning

Traffic & Drainage•

Major Projects •Construction

Roadside and •Urban Street Vegetation

Mineral Springs •reserves and structure Maintenance

Recreation•

Public Open Space •management

Home and •Community Care

Community •Transport

Community Services•

Youth Services•

Regional Libraries•

Meals on Wheels•

Community Visitors •Scheme

Arts & Culture•

Community Housing•

Community •Strengthening

Emergency •Management

Family & Children’s •Services

Human Resources•

Legislative •Compliance including:

OH&S Management•

Equal Opportunity•

Human Rights•

Whistleblowers•

FOI•

Risk Management•

General Insurance/•Public Liability

Staff Development•

Customer Service•

Governance•

Records •Management

Information •Technology

Privacy•

Leases•

Contract •Management

Property Services – •Civic facilities

Rates/Revenue •collection

Financial •Management

Statutory Reporting•

Organisation •Development and Planning

Major Projects•

Local Laws/•Compliance

Emergency •Management

Fire Prevention•

School Crossing •supervision (Public Safety)

Immunisation•

Environmental •Health

Natural resource•

Sustainability•

Environment •Landcare

Building Services•

Waste Management•

Strategic & •Statutory Planning

Planning Compliance•

Economic & Tourism •Development

Events•

Visitor Information•


8 | Our People (continued)

Our staffAs at 30 June 2009, 149 staff equating to 114.8 equivalent full-time staff (EFT) were employed by Hepburn Shire Council. Two of these positions were externally funded project positions in relation to Bushfire Recovery and the Transport Connections program. At 30 June 2009 7 positions were vacant (EFT 6.6).

Of Hepburn’s staff 54% are female and 46% are male. 58% of staff are full time, 36% part time and 6% are casual employees.

Service AwardsAn amazing 175 years of service, or 350,000 hours, were clocked up by nine dedicated staff across a range of work areas including home care, parks and gardens, administration, building and community services.

At a special celebration to recognize long service, awards were presented to Denise Monahan, Bronwyn Parkinson and Sue Richards for 10 years service, Barry Maxwell for 15 years, Paul White for 20 years, Bill Vermeend, Andy Corker and Shirley Maxwell for 25 years and Rob Beard for 30 years.

Our VolunteersHepburn Shire is home to a generous culture of volunteerism, with more than one in five residents volunteering for an organisation. Council benefits from this culture with volunteers giving generously of their time, skills, advice and expertise for the good of their community.

During 2008-09, Hepburn Shire developed its first Volunteering Policy to ensure volunteers receive appropriate recognition and support and to provide a number of guiding statements to assist both volunteers and the organisation.

Over 200 volunteers assist with the operation of the Visitor Information Centres at Daylesford, Clunes, Trentham and Creswick. Denise Robinson and Rudy Hebner from the Daylesford Regional Visitor Information Centre, received 10 year service badges in recognition of their long standing volunteer contribution. Volunteers are also critical to the running of the Creswick Planned Activity Group and the Community Visitors Scheme.

Over 150 volunteers participate on Section 86 and Advisory Committees and volunteers help drive Australia Day activities, emergency recovery and Friends of Creswick Town Hall.

TraineeshipsCouncil is committed to providing opportunities for young people and continued its participation this year in the Local Government Planning Internships and Traineeships Program.

In 2008-09 Council employed eleven trainees and one apprentice, with five employed with the outdoor staff, three in Parks & Gardens, and one each in IT, Finance and Compliance.

Selected undergraduate students gain six weeks paid work experience as interns with Council, funded by the Department of Planning and Community Development.

Talented tourism student, Angela McClelland, gained valuable industry experience by completing her placement at Council Tourism Information Centres across the shire as a result of winning the Hepburn Shire Tourism Award. The Hepburn Shire Tourism Award includes a $1,000 grant and a 10 day work placement.

-4

-2

0

2

4

2008-092007-082006-07

Unde

rlyin

g su

rplu

s / -

defic

it $M

0

1

2

3

4

2008-092007-082006-07

Wor

king

cap

ital $

M

Working capital

Capital works

Underlying results

1.99

1.111.49

0

5

10

15

2008-092007-082006-07

capi

tal w

orks

$M

5.806.42

4.23

Cash reserves

0

2

4

6

8

10

2008-092007-082006-07

cash

on

hand

$M 5.60

3.943.96

Rates

0

2

4

6

8

10

2008-092007-082006-07

% ra

te in

crea

se

8.38.9


-6

-4

-2

0

2

4

6

8

10

12

2008-092007-082006-07

surp

lus

/ -de

ficit

$M

11.23

-0.94-4.30

-0.74-1.90-2.89

0

10

20

30

40

50

60

70

80

90

EFTTotal

VacantFemaleMale

Staff by Gender

7

64.369

80

50.5

6.6

0

20

40

60

80

100

120

140

160




0

25

6

91

60

7

48

1

56

72

9

6980

7

156

0

20

40

60

80

100

120

140

160EFT

total

Fund

edPr

ojec

ts

Tota

l

Sust

aina

ble

Deve

lopm

ent

Corp

orat

eSe

rvic

es

Com

mun

ityDe

velo

pmen

t

Infra

-st

ruct

ure

Exec

utiv

eOf

fice


22.5

4040

4

29.6

52

2533

20.8 25.4

154

119.5

2

EFTTotal

-4

-2

0

2

4

2008-092007-082006-07

Unde

rlyin

g su

rplu

s / -

defic

it $M

0

1

2

3

4

2008-092007-082006-07

Wor

king

cap

ital $

M

Working capital

Capital works

Underlying results

1.99

1.111.49

0

5

10

15

2008-092007-082006-07

capi

tal w

orks

$M

5.806.42

4.23

Cash reserves

0

2

4

6

8

10

2008-092007-082006-07

cash

on

hand

$M 5.60

3.943.96

Rates

0

2

4

6

8

10

2008-092007-082006-07

% ra

te in

crea

se

8.38.9


-6

-4

-2

0

2

4

6

8

10

12

2008-092007-082006-07

surp

lus

/ -de

ficit

$M

11.23

-0.94-4.30

-0.74-1.90-2.89

0

10

20

30

40

50

60

70

80

90

EFTTotal

VacantFemaleMale

Staff by Gender

7

64.369

80

50.5

6.6

0

20

40

60

80

100

120

140

160




0

25

6

91

60

7

48

1

56

72

9

6980

7

156

0

20

40

60

80

100

120

140

160EFT

total

Fund

edPr

ojec

ts

Tota

l

Sust

aina

ble

Deve

lopm

ent

Corp

orat

eSe

rvic

es

Com

mun

ityDe

velo

pmen

t

Infra

-st

ruct

ure

Exec

utiv

eOf

fice


22.5

4040

4

29.6

52

2533

20.8 25.4

154

119.5

2

EFTTotal


Strengthening CommunitiesEngaging and supporting diverse communities to realise their potential and achieve their aspirations

Healthier Communities The three year Hepburn Healthy Community Project ended in December 2008 and was marked by an Expo in the Creswick Town Hall. The project implemented strategies contained in Council’s Social Plan across five key project areas:

Transport •

Housing •

Employment •

Youth services•

Community Strengthening •

Elements of the Municipal Public Health Plan were implemented and a community strengthening model was used to develop community planning and leadership opportunities.

The expansion of partnerships with other community agencies/groups and the engagement of residents was an important outcome of the project.

Dollars for Community Over $40,000 was allocated to community groups for a range of youth, culture, arts and community strengthening projects. Small equipment grants of up to $500 allowed community groups to purchase equipment to enhance their activities, support volunteers and improve health and safety.

Over 300 community groups, clubs and organisations operate across Hepburn Shire, many operated or governed by volunteers, usually with little or no paid resources.

Receiving even small amounts of money, through Council’s community grants initiative, can enable these groups to conduct their business better, more safely or promote community connection and engagement.

Makeover for Creswick Town Hall Completion of renovation works on Stage One of the Creswick Town Hall was aptly celebrated with the major production Dinner

in a Dry Dam; stories of drought and struggle told through theatre and song.

The upgrade and repairs of the Creswick Town Hall provided a hub for community focus, with over 20 volunteers providing assistance.

Members of Friends of the Town Hall (FOTH) provided a key link with Council and the local community and the upgrade has stimulated many new uses for the hall. It is a great collaborative outcome that the community of Creswick can now feel justifiably proud of its town hall.

Valuing young peopleIn November 2008 Council adopted a Youth Policy that aims to build opportunities for young people in Hepburn Shire and encourage them to remain living locally. The policy focuses on creating a positive life experience for young people, who although they may leave to pursue a range of opportunities, may one day choose to return to live in Hepburn Shire.

Strategies include improving community engagement, providing advocacy, leadership and service delivery, building partnerships with community groups and organisations and last but not least, creating positive images of young people.

Positively AgeingA Positive Ageing Strategy was developed by Council to address the local impacts of Australia’s rapidly ageing population. Almost one third of Hepburn Shire’s current population is over 55 years and it is projected that by 2021 this will grow to 45%.

Council obtained a $10,000 grant to develop the strategy, funded by the Office of Senior Victorians in the Department of Victorian Communities.

The strategy aims to encourage the community, including local government, business and community organizations to create or provide opportunities for older residents to participate in their community.

9


9 | Strengthening Communities (continued)

The strategy has four key goals:

To have a physical environment that encourages 1. and allows residents to continue to participate in the community as they age

To provide residents with a broad range of opportunities 2. to engage socially, recreationally and educationally as they age

To reduce the financial burden on older residents 3. enabling them to enjoy quality of life in later years

To ensure relevant and quality services exist to enable 4. residents to remain independent and when a greater level of service is required, more options will be available locally

Our littlies matter tooCouncil has established a planning forum group to consider the recommendations of its first Municipal Early Years Plan (MEYP), which aims to improve health and wellbeing outcomes for children birth to 12 years. The group will also develop a five year action plan to address the issues identified.

A recent study to inform the MEYP found that child care options in the Shire are limited, immunisation rates are too low and there are insufficient vacation care and after school programs, youth spaces and facilities and non sporting activities for children.

The action plan will focus on a shire wide and inter-agency approach to increasing support for young children and their families, supporting vulnerable families and providing ease of access to existing and future services.

Bushfire Recovery – a team effortResponse to the Musk Vale bushfires was multi-pronged with establishment of two taskforces, a multi agency recovery committee and the appointment of an Emergency Recovery Community Development Co-ordinator, funded by State Government, to work directly with fire affected residents and property owners.

The Built/Natural Taskforce Committee and the Social/Community/Economic Taskforce got on with the enormous number of tasks requiring prompt action.

The Hepburn Shire Recovery Committee was formed to ensure a coordinated and ongoing approach and consisted of a number of agencies and groups including community volunteers, SES, Department of Primary Industries, Department of Sustainability and Environment, Department of Human Services, Regional Development Victoria, Hepburn Health Services and Council.

Communities setting their own agendaIt’s been busy since Council’s adoption of a Community Planning Framework in 2007, with facilitation of a number of community owned plans.

Yandoit, Clydesdale and Franklinford jointly developed a Community Plan, the Clunes community completed theirs in June 2009 and the Trentham Traders and Residents Association (TRATA) commenced a community planning process with the Trentham community in late 2008.

The Creswick Development Committee reviewed their previous community plan and is working with the community to help set priorities for the next three years.

Community planning assists local people to decide what’s important to them, determine their priorities and subsequently ‘own’ their plan. Council actively supports this process while developing a high level of confidence and understanding about what the communities want.


Service DeliveryDelivering responsive services to our community within available resources

Service Delivery – Units of Service Delivery Financial Year 2008/2009

Increasing Satisfaction In the twelfth year that Hepburn Shire Council has participated in the Local Government Community Satisfaction Survey, results are generally improving.

Although we still have some ground to make up when compared with results of other councils of a similar size, statistically significant increases in satisfaction were seen for Overall Performance, Advocacy and Community Engagement. 31% of respondents felt that council had improved its performance from 2008.

Driving transport solutions An Asset Map report was undertaken as part of the Transport Connections project, funded by State Government, into gaps in transport services in Hepburn Shire. It revealed the need for transport services to Ballarat for people living in Clunes and Daylesford, especially for those who work or study in Ballarat.

A number of options are being explored with the community to find solutions, including the use of school buses that remain idle during the school day.

As part of the project, pamphlets were produced identifying what transport options exist across the shire and when they’re available.

Team effort at Creswick kicks major goalYears of planning, co-operation and perseverance has paid off for the Creswick community and Council with the Commonwealth Government’s announcement of $2.2 million dollars towards a multi-purpose community facility and football/cricket oval at Doug Lindsay Reserve. Council will contribute $300,000 and the community $50,000.

Junior and senior cricket, football, netball, athletics, outdoor games and the broader community will all benefit from the development.

Congratulations to the project team including representatives from the Doug Lindsay Reserve, Creswick Football Netball Club, Creswick Cricket Club, Victorian Country Football League, Central Highlands Football League, Sport and Recreation Victoria and Hepburn Shire Council.

Active improvementsA range of sport and recreational facilities were improved across the shire over the past year:

Council and State Government funded the construction and •installation of fishing platforms at Jubilee Lake to improve access and encourage recreational fishing.

Daylesford’s Victoria Park will be better equipped to cater for •community events after receiving $127,000 from the State Government’s Small Town Development Fund to upgrade facilities.

After consultation with the community, a number of •improvements were implemented by Council and pool operators YMCA, including more suitable opening hours, a new diving board for the Daylesford Pool and season tickets allowing access to all public pools in the Shire. Council pools, managed by the YMCA are located at Trentham, Daylesford and Clunes.

Council supported the YMCA to establish a gymnasium at •the ARC Recreation Centre in Daylesford in April 2009, in response to public demand after a privately owned facility closed in 2008.

10Property Maintenance

Respite Care

Personal Care

Assessment Hours

Planned Activity Group

Home Care

Meals on Wheels


10 | Service delivery (continued)

Clarifying roles for personal care The Grampians Region Personal Care Protocol was developed to clarify roles and responsibilities for personal care providers, at their request.

To be used in conjunction with the Home and Community Care (HACC) policy, the protocol was funded by Department of Human Services and aims to improve the timely and effective delivery of the service.

Saving water from the ground upThe importance of water as a sustainable resource in the face of climate change is a priority for Council and every little bit helps!

A $10,000 water saving grant and a $13,300 climate change grant from Department of Human Services enabled a number of projects to be undertaken with frail aged clients and clients with disabilities.

A showerhead replacement program for clients of Council’s Home and Community Care Programs was offered by Council together with Central Highlands Water and Coliban Water. Funding also enabled the Community Garden Group in Daylesford, to build a water wise garden. The Group provides opportunities for people with a disability to develop knowledge and skills about horticulture.

Footpaths are shared zonesFootpaths are now divided into 3 zones: kerbside, trading and walkway, as a result of recommendations from the Council’s Footpath Trading and Access For All Reference Group.

Walkways must extend out from the building line to provide a path clear of street furniture, signs and displays, to allow people with pushers, riding motorised mobility scooters and all pedestrians to easily move along footpaths.

The Reference Group, established in August 2008, reviewed Council’s policy relating to Signs and Good on Roads to ensure compliance with the Disability Discrimination Act 1992. Members included representatives from Council, Hepburn’s Community Access Group and Regional Tourist Association, Daylesford’s Business Group and Senior Citizens Club, and two traders from Daylesford.


Asset and Resource ManagementEffectively managing our assets and resources to create a better shire for our community.

Waste not..Council supplies a comprehensive suite of waste management services across Hepburn Shire, with a focus on waste reduction through re-use, recovery and recycling:

council operated transfer stations at Daylesford, Creswick •and Trentham on rehabilitated landfills, also serve as resource recovery centres for waste throughout the municipality.

400 tonnes of recyclables deposited at the transfer stations •was sorted at Municipal Recycling Facility (MRF) and removed from the waste stream

2,500m3 of green waste was processed on site •

Over 400 tonnes of steel was deposited at transfer stations •for reuse.

1,850 tonnes of waste was transported to the Smythesdale •landfill

4,750 properties received weekly garbage collection•

4,800 properties received fortnightly recyclable collection•

1,600 tonnes of household collection waste was transported •to the Smythesdale landfill,

1,100 tonnes of recyclable material collected was processed •at Daylesford (MRF) – a new operator has been appointed to ensure operation into 2009/10

collected and disposed of waste from street litterbins in the •commercial precincts of main townships and within various reserves, with improved recycling planned

cleaned streets in Clunes, Creswick, Daylesford and •Trentham.

serviced Council’s stormwater gross pollutant traps in •Daylesford and Creswick

Welcoming public spacesCouncil takes pride in maintaining and managing many of the reserves, gardens and lakes across the shire for the outdoor enjoyment of residents, ratepayers and visitors.

The North Parade Creswick playground now boasts new equipment designed to challenge children aged 3 to 12, provide lots of fun and encourage them to play for longer.

Tree management works identified in the Conservation Management Plan were commenced for Wombat Hill Botanic Gardens and will continue in 2009/2010. Works identified in the Park Lake Masterplan were also commenced and completed in 2008/2009.

11


11 | Asset and Resource Management (continued)

Depot’s new homeConstruction commenced on the new Council depot located on the former sanitary site on the Daylesford – Trentham Road.

The advantages of the new depot are many: improved workplace safety and efficiency, central storage facilities for plant, stock and materials, good access, parking and facilities including administration offices, staff training facility, three bay workshop, office storage and a warehouse. The depot, scheduled for completion in October 2009, will incorporate state of the art environmental systems for fuel, oil waste, storm-water collection and reuse.

The depot replaces those at Hepburn Springs and Wombat Hill Gardens and the storage yards in Hepburn and Mineral Springs Reserve.

Renew & replace Council replaced Butlers Lane Bridge Glenlyon, Taradale Road culvert and the Drummond North and Victoria Street pedestrian bridge.

Gooches Bridge on the Back Glenlyon Road was designed and tendered for construction in 2009/2010.

Of the sealed road network, Council resealed 43kms and upgraded 22kms through the shoulder sealing program. We improved 16000m2 of road through the stabilization program and 21 kms of gravel resheeting was completed on unsealed roads.

Not so routine for road usersNo easy task - Council maintains 590kms of sealed roads, 730kms of gravel roads, 75 kms of formed tracks, 87 bridges, 39 major culverts, 30kms of urban drainage, 30 kms of footpaths and 77 kms of kerb and channel.

A regular road inspection is carried out in line with the Road Management Act and Council’s Road Plan for local roads to inform the maintenance needs on roads, bridges, drainage, footpaths, kerb and channel, street furniture, linemarking, signage and roadside vegetation.

Council undertook the renewal of 500m2 of existing footpaths on its footpath network in the urban areas. New footpaths along Victoria Street in Trentham, Fraser Street in Clunes and Raglan and Reid Streets in Creswick, improved access for pedestrians.

Council also removed low hanging branches from trees along sealed and gravel roads and replaced 2 guard-rail sections abutting bridges and major culverts.


1210.5 million reasons to take a bathThe Hepburn Springs Bathhouse – the iconic focus for the health and wellness heritage of Daylesford/Hepburn Springs, reopened in September after a $10.5m makeover.

The Bathhouse now provides a quality experience to delight locals and attract national and international visitors thanks to contributions from State Government $8.8m, Federal Government $0.5m and Hepburn Shire Council $1.2m.

A 20 year lease was signed with Belgravia Leisure for the operation and management of the Bathhouse.

Hepburn huge winner in tourism stakesDaylesford is the centerpiece of Tourism Victoria’s three year $7.3 million advertising campaign, focusing on Spa and Wellness. The vision is ‘in the can’ and advertisements are set to commence across the nation to position Victoria, and in particular Daylesford, as the leader in Spa and Wellness experiences and for mineral water.

On board for Destination DaylesfordThe newly created Destination Development Board will establish a single, effective and collaborative tourism management structure to guide the sustainable development of the local tourism industry that contributes significantly to the economic, social and environmental well-being of the region.

The Board is a joint initiative of Tourism Victoria and Council in consultation with key stakeholders including Hepburn Regional Tourism Association, Daylesford & Macedon Ranges Tourism Inc., the local tourism industry and broader community.

Small footprint, large visitor impact The Creswick Interpretive Centre is a modern, environmentally sustainable tourism and interpretive centre, providing visitors with an enriched discovery experience that in itself delights, but also encourages visitors to extend their stay in the region and return.

Completed in April 2009 the Centre is an energy efficient precinct using grid connected solar power with a commitment to using 100% green-power, in line with Council’s philosophy to reduce energy consumption in the main buildings.

The project was jointly funded by the Commonwealth Government, Regional Development Victoria and Hepburn Shire Council.

Economic DevelopmentStrengthening our local community by working with all business sectors and the community


12 | Economic Development (continued)

Take a break at the Kiosk The former curator’s residence at the Wombat Hill Gardens, known as The Kiosk, will continue to be a feature of the gardens since Council successfully tendered a lease to Alla Wolf Tasker of the Lakehouse for the provision of refreshments and the management of the kiosk.

The Gardens have an impressive history dating back to the 1860’s and a Conservation Management Plan, completed by Council in 2007 to guide the future use of the area, identified The Kiosk as culturally significant and recommended it be preserved.

Tourists research on lineIn recognition of the growing trend for prospective visitors to conduct their research on-line, the websites supporting the Daylesford Regional Visitors Information Centre and the new Creswick Interpretive Centre were upgraded.

First for AgricultureThe Agriculture Advisory Committee, established by the Hepburn Shire Council in September 2008, is the first of its kind in the state.

Five community representatives with farming and permaculture experience, two representatives from the Victorian Farmers Federation, and a councillor make up the Committee. It will provide advice to council on issues such as transport, pricing, climate change, sustainability, pollution, water, drought, potatoes, farm gate production and genetically modified crops.

Establishment of this committee is in direct response to Council’s understanding of the significance and contribution of the agriculture sector and the challenges faced.


13Buying green pays dividendsHepburn Shire ‘scooped the pool’ at the 2009 Eco Buy Awards held at the National Gallery of Victoria in May 2009.

Hepburn won in two of the nine categories – Excellence in Green Purchasing Small Rural Council Award and the Green Powered Champion Council Award. Council was also a finalist in a third category recognizing Greenhouse Friendly Purchasing.

Our total investment in green products amounts to an impressive 4.7% of total budget compared to an average of 2.4% for all reporting Eco Buy local government members. Council also purchases 100% Green Power for the four main Council buildings.

We are rightfully recognized as a local government leader in environmental innovation, sustainable practices and green purchasing.

$15,000 for green grass rootsCouncil’s inaugural Sustainable Community Grants were awarded to Hepburn Renewable Energy Association, Hepburn Shire U3A, Trentham Sustainability Group and Hepburn Relocalisation Group for projects meeting the outlined criteria, to a maximum of $4000.

A total of $15,000 was available to link actions in the Greenhouse Local Action Plan while providing an opportunity for shire based volunteer community groups to take action toward a more sustainable community. Funding was divided into four key areas of Energy Efficiency, Water Efficiency, Waste Reduction and Behaviour Change.

Stormwater saves 400,000 litresStormwater captured from the existing glasshouse and garden buildings at Wombat Hill Botanic Garden and stored in a new 50,000 litre underground tank will save an estimated 400,000 litres of potable water per year. Council received a Community Water Grant funded by the Department of Environment, Water Resources and the Department of Agriculture, Fisheries and Forestry and the Arts for the project which also enabled an upgrade of the reticulated irrigation system.

Reducing Council’s wasteIn August 2008, Council adopted the Hepburn Shire Council Waste Wise Program to reduce waste from Council buildings and depots going to landfill.

A rubbish recycling system was introduced to all work areas and reduced paper use, purchasing of recycled paper, the addition of water dispensers to promote reduction in plastic water bottles are among many of the changes introduced.

2 for 1 combats droughtCouncil successfully leveraged its dollar contribution of $40,000 with Regional Development Victoria on a 2 for 1 dollar basis under the Small Towns Drought Program. Clunes and Newlyn Recreation Reserve benefited from solar hot water and drought proofing of ovals with the installation of a 40,000 litre underground tank.

Players and community members now experience renewable energy and water efficient technology first hand.

Environment and HeritageIn partnership with our community, ensuring that our cultural, natural and built environment is protected, conserved and enhanced for future generations.


13 | Environment and Heritage (continued)

Pushing solarHepburn Shire Council belongs to Pure Local Energy, a regional local government collective of nine councils encouraging the domestic sector to take up grid connected solar power. Four information sessions were conducted in Daylesford and Creswick, with the Solar Shop Australia, to an enthusiastic audience. Installations will continue over the next twelve months.

Biodiversity is no accidentIncreasing new landholder’s awareness of the importance of biodiversity in the face of climate change is the aim of a two year project funded by Sustainability Victoria in partnership with City of Ballarat as lead council and Moorabool, Pyrenees and Hepburn Shire Councils.

A tool kit is available to guide landholder’s decisions regarding biodiversity as they relate to the Planning Scheme. The project is coordinated by a full time Biodiversity Community Engagement Officer, hosted by City of Ballarat.

Keeping the past for the futureA number of significant community and heritage buildings received funding for upgrades over the past year:

Creswick Town Hall Redevelopment, stage 1 is nearing •completion and will boast upgrades to the kitchen, lighting, heating, access and stage facilities and a repaint to boot.

$15,000 goes a long way to maintain, repair and replace •sections of the verandah and façade of the Clunes Library.

$45,000 enabled the replacement of the Clunes Museum •verandah to Heritage Adviser’s specifications.

Restoration works are now complete at Clydesdale Hall •(former Clydesdale Primary School) thanks to funding from Victoria’s Heritage Grants Program (VHGP) in 2007 and 2008.

A Victoria’s Heritage Grant was also obtained in 2008 to •restore Franklinford Community Hall (the former Franklinford Common School) and works are under way.


Community Grants and Awards

Australia Day AwardsThe Hepburn Shire Council’s 2009 Australia Day Award recipients were announced at a Civic Reception at the Daylesford Town Hall on Australia Day eve.

Johanna Van Oostveen was awarded Citizen of the Year for her tireless work for the community. Her volunteer work spanned far and wide in the Creswick area, including being the Lion’s Club president, hostel volunteer, meals on wheels volunteer, secretary of the Creswick and District Historical Society and Calembeen Park committee member.

The Creswick Hospital Auxiliary’s “It’s a Shoe Thing” exhibition was awarded Event of the Year. The event involved a huge combined effort and some remarkable imagination. It attracted hundreds of people to Creswick and proceeds were used to provide important equipment for Creswick’s hospital and nursing home.

Hepburn Shire Women’s Honour Roll GrowsThe Honour Roll, now in its fifth year, was formed to acknowledge and celebrate women who have selflessly made a difference to the local community.

Four new inductees to the Women’s Honour Roll were announced at a function held at the Daylesford Town Hall on Sunday 24 May 2009.

Kathleen Brown has been actively involved with sporting groups in Trentham, despite the commitments of raising a large family of ten boys. Most notably, she’s worked to keep the Trentham Swimming Pool operating, and pioneered female membership in the Trentham CFA.

Lisa Gervasoni is passionate about the past and present attributes of the natural and built environments of Hepburn. She has been an active committee member and initiated many projects which have led to wider recognition of the Shire’s surroundings.

Kathy Watt’s 35-year teaching career has provided the opportunity for her to nurture, encourage and influence the lives

of many children and fellow teachers. Her special ability and extra efforts at assisting her students and trainee teachers is often acknowledged.

Margaret Grenfell (posthumous) 1912 – 2006 was a community leader, who was involved with the Presbyterian Church for over 90 years. She was active in many groups in Clunes, most notably the Red Cross, Hospital Board and CWA.

Youth Recognition AwardsTo recognise the contributions of young people to their communities, awards for Arts & Performance, Club Dedication, Volunteering, Leadership and All Rounder were presented at a special ceremony held during national Youth Week.

The winner of the Arts and Performance Award was Abbey Gibbs, a talented young artist, whose work has been chosen to represent the Youth Advisory Committee logo, and who has been a driver in establishing youth arts and culture programs through FReeZA in Trentham, such as Claymation Camp.

The Volunteering Award was presented to Reece Carter, a young man has been nominated for the second year running, this year for his dedication to the Clunes community, volunteering at the every night at the Clunes Neighbouhood Centre, writing for thenewsletter and helping customers. He also regularly volunteers at the Clunes Primary School, Cricket Club and is the first to put his hand up to help at community events.

Adam Sewell won the Award for Club Dedication. Adam is not only a successful competitor in football and tennis teams, but works to write media reports, collate results and is the youngest serving executive committee member for the Mt Prospect Tennis Club.

The Leadership Award was presented to Josh Gilligan who is involved in just about everything community and political. He participates in more than 12 different committees and groups at local, state and federal levels, representing young people from regional areas and advocating for change, and seems to take each and every opportunity he possibly can to contribute to creating healthy vibrant communities now and for the future.

14


14 | Community Grants and Awards (continued)

2008-09 Community GrantsName of Group or Organisation Project Name Allocation Brief Description

Creswick Museum Ruby Lindsay & Will Dyson Exhibition

$500.00 Exhibition of the art of Ruby Lindsay & Will Dyson to be displayed at the Creswick Museum.

Door 3 Community Access Development for East Street Studios

$500.00 Project to develop signage and access for the public to the East Street Studios.

Magic Pudding Playground Project Group

Magic Pudding Show

$500.00 The Magic Pudding Show will be a collection of readings & scene adaptations from N. Lindsay’s book The Magic Pudding staged in Creswick

Trentham Community Choir

Choir Music Library

$500.00 Establishment of a music library comprising sheet music and CD recordings for the recently formed choir.

Creswick & District Historical Soc Inc

The David Henderson Map of Old Creswick Shire

$500.00 A publication of a map covering the original Shire of Creswick, marking and naming sites of creeks, gullies, churches and streets, taken from book ‘Early Creswick’ 1942.

Daylesford media technologists

Dance Event Management for Kids

$500 Run an event for budding young dj students. Give them a platform to demonstrate newly acquired skills. Students to manage the event involving 2 workshops.

Daylesford Secondary College

Getting Dirty Daylesford 2009

$500 Would like to continue to run this program, further funding required. 8wk program designed for 12-15 Yr 7 & 8 students.

Daylesford Family Services

Journey to the Centre of the Shire’ film premiere

$485 Youth film targeting rurally isolated young people. Project culminates in premiere to celebrate achievement with broader community

Daylesford Secondary College (Aussi)

AuSSI Human Sign Project

$500 Involve students from Daylesford & district PS/ DSC & community members to make a human sign to express our fight against climate change.

Daylesford Christian Fellowship

AFL Project $500 Project designed for youth of Daylesford & district to experience AFL match in Melb. Go by bus.

Daylesford-Hepburn Community Café

Daylesford-Hepburn Community Café

$420 Advertisement in Advocate each month

TRATA Inc Trentham Local Business Study

$2000 Propose to undertake structured approach to identifying & supporting needs of Trentham’s existing businesses. Outcome to develop strategy to retain business & increase job opportunities.

Daylesford Neighbourhood Centre

Daylesford Mens Shed

$2000 The development and erection of a Mens Shed for the community of Daylesford.

Tracey Dawkins Kids Express $1920 Performing Arts group for children.

Trentham Irish Club Australia Day Eve celebrations

$500 Family focussed comm concert of multicultural performers on 25/01/09.Performers from local & wider entertainment network of Vic.



Name of Group or Organisation Project Name Allocation Brief Description

Daylesford Dharma School Inc

Lessons for Living in the Landscape

$1940 Project seeks funds to write a locally based environmental curriculum for our PS. 'hands-on' experience for children.

Creswick Community Sports Foundation

Volunteer Support Workshop

$2000 Run a workshop to identify & develop the necessary skills and expertise that will be required for the group to be successful.

Trentham Sustainability Group

Sustainability Day $500 Holding event called "Sustainability Day" - 22/11/08.

Friends of Cornish Hill Cornish Hill Community Planting Days

$1250 Organize 2 community planting days on Cornish Hill near picnic area. BBQ after planting. Informal guided tour available for those interested.

Creswick North Primary School

A sustainable Community BBQ area

$950 Further develop an area that has been designed for the school vegetable and fruit garden area.

Yandoit, Franklinford, Clydesdale Community Group

Jim Crow Film Society

$500 Planning to set up film society. Money will assist in obtaining equipment needed to show films. Film nights to focus on family entertainment etc.

Hepburn Wildlife Shelter Inc

Secure Storage Shed for Wildlife Rescue Equipment

$500 To purchase, construct, fit out storage shed where equipment can be stored & accessible to rescue volunteers. Shelving to be fitted, to consolidate storage of supplies, equipment & animal feed etc.

Friends of Creswick's Park Lake Botanical Reserve

Safety cover for ornamental pond

$500 Secure child safety by fitting metal mesh cover over recently restored ornamental pond at top of old Fernery area.

Clunes & District Pre-School

Assisting the assistants

$500 Purchased a photocopier. The necessary extras were not included in this purchase. Money would go towards purchase of fax module to be added to copier.

Trentham Playgroup Trentham Playgroup $440 Funds to purchase a first aid kit, music box, play mat and play table.

Hepburn Kindergarten Active Outdoor Play $260 Purchase of 2 outdoor mats and block for children’s outdoor play area.

Dean Hall & Mechanics Institute

Maintenance - Dean Hall Toy Library

$300 Toy Library needs financial support to upgrade toys. Playgroup & Toy Library have 18 member families who do not drive to Ballarat.

FMYV Productions / Daylesford Young Filmmakers

Fragile Memories, Young Voices

$1,900 Production of a series of videos contrasting the oral history of the Hepburn Shire community with young people’s hopes and attitudes.

Clunes Neighbourhood House Inc

Community Food Preparation/ eating area

$2,000 To upgrade the food preparation area and eating amenities and conduct community events at the Community Garden promoting health and wellbeing.

Sweet Justice Women’s Community Choir (Daylesford Neighbourhood Centre)

Sweet Justice 'Water' CD

$2,000 To prepare, plan, design, create, produce and distribute a CD for sale to the public with the theme of water.

SWISH (Supporting Women In Strengthening Health) and SWAT (Supporting Women Around Trentham)

"A Fine Balance" $2,000 To implement a range of community strengthening strategies to address issues for people aged 35 -64. Often women "sandwiched" by the needs of children and ageing relatives.

Creswick Fridge & Creswick Learning Centre

Thinking for the Future

$2,000 To gather information about community opinions on climate change and different types of energy and produce a film showing the range of views about climate change and renewable energy.



Name of Group or Organisation Project Name Allocation Brief Description

Rotary Club of Daylesford Historical Display Board: Three Lost Children’s Walk

$2,000 To design and construct an historical display sign at Three Lost Children Reserve, Daylesford and to restore Memorial Garden (Musk).

U3A Hepburn Shire Inc. Community Groups Information Seminar

$800 For non-profit community groups to participate in a lunchtime seminar to share information about purpose and activities.

Glenlyon Upper Loddon Landcare Group.

Loddon River Biolink Project - Weed Control

$500 Purchase a brushcutter to assist project linking Glenlyon with the Glenlyon Reserve via a trail along the eastern side of the Loddon River.

Creswick & District Preschool

Cubby House for 3 year old kindergarten

$500 To assist the preschool with the purchase of a cubby house.

Mothers Group at Daylesford Christian Fellowship.

Playing equipment for 3-5 years old

$250 To purchase suitable toys for "Mothers Group", that meets every Tuesday afternoon.

Daylesford Neighbourhood Centre

Daylesford Men's Shed

$500 To comply with OH&S requirements, acquire safety equipment: a suitable first aid kit and two fire extinguishers (chemical & water).

Friends of Creswick Park Lake Botanical Reserve

Restoration & Replacement due to drought losses

$500 Replacement of trees and shrubs lost during the current drought, protecting the newly planted trees and shrubs with plastic tree guards and staking them against wind damage.

Mollongghip Community Hall

Fire Protection Equipment

$500 Purchase of two fire extinguishers - one for the hall proper; the other for the supper room, plus a fire blanket and signage.

Semmens Court Residents Association Inc.

Exercising the Elderly

$198 To purchase a table tennis table to be located at the Community Centre at 5 Moore Street, Creswick, for the use of the elderly citizens who live at the public housing complex (formerly known as Semmens Court).

Creswick Words in Winter Committee

Creswick Words in Winter 2009

$500 This project aims to provide opportunities for local citizens to experience the words of a scriptwriter, children's author, poets and local talent to broaden the range of literary culture available to Creswick residents as part of Words in Winter celebrations August 2009.

Creswick & District Historical Society

The People of Cabbage Tree

$500 The project is to publish a booklet, detailing the people who settled at Cabbage Tree (small hamlet near Creswick), including stories and information about everyday life experienced during settlement as well as details about the buildings and structures.

Creswick Choristers The Creswick Choristers

$500 The Creswick Choristers are a new group of people interested in singing. This project aims to assist in the initial skills development of members and seeks funds to employ a community singing leader.

Magic Pudding Playground Group

Magic Pudding Show - Third & Fourth Slices

$500 The Magic Pudding Show - Third & Fourth Slices will be the second part of an entertaining children's show, adapted from the book by Norman Lindsay. Performances are planned across the shire in the second half of 2009 at a range of venues including parks, primary schools, kinders and aged care facilities.

Victorian Independent Speedway Drivers Association Inc. (V.I.S.D.A) Daylesford Speedway

Developing Good Daylesford Juniors Drivers

500 This project is a training program for junior speedway drivers competing in junior speedway events within the Hepburn Shire. It will cover everything from track rules and regulations, car safety, introduction to driving, track craft, public speaking, dealing with sponsors and an introduction to the community of Hepburn Shire.


15 Victorian Government Indicators

Indicator Description 2008-09 2007-08

Overall performance Community satisfaction rating for overall performance 58% 52%

Advocacy Community satisfaction rating for Council’s advocacy and community representation on key local issues

61% 55%

Engagement Community satisfaction rating for Council’s engagement in decision making on key local issues

54% 48%

All rates Average rates and charges per assessment $1,112 $1,007

Residential rates Average residential rates and charges per assessment $985 $926

Operating costs Average operating expenditure per assessment $1,979 $1,293

Capital expenditure Average capital expenditure per assessment $578 $640

Infrastructure Ratio of current spending on capital renewal of existing infrastructure assets which returns the service potential or the life to its original

68% 53%

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

86% 90%

Debts Average liabilities per assessment $755 $695

Operating result Operating result per assessment $144 ($38)


16Section 132 of the Local Government Act 1989 requires Councils to prepare a performance statement at the end of each financial year which includes the Key Strategic Activities and performance targets and measures specified in the budget under Section 127, and the actual results achieved against those performance targets and measures.

For the year ended 30 June 2009, Hepburn Shire Council is unable to comply with Section 132 as performance targets were not specified in the 2008-2009 budget.

For the 2009-10 year, performance targets have been specified in the budget in accordance with Section 127 of the Local Government Act and therefore Hepburn Shire Council will be able to comply with Section 132 for the year ended 30 June 2010.

Performance Statement


17Hepburn Shire Council is committed to accountability. Council’s financial reports are prepared in accordance with the Australian Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board, the Local Government Act 1989, and the Local Government (Finance and Reporting) Regulations 2004, and as such, use terminology and conventions that may not be familiar to some readers. This Plain English Guide has been developed to assist readers understand and analyse our financial reports.

What is contained in the Financial Report?The financial report contains four major disclosures, collectively known as the Financial Statements.

Income Statement•

Balance Sheet•

Statement of Changes in Equity•

Cash Flow Statement•

These key documents provide an overview of the transactions that occurred during the year and a summary of the financial status of Council at the end of the year.

The remainder of the financial report is called the Notes. These provide explanations of the accounting policies and further details on the values contained in the four Statements. Details about the information contained in each of the four Statements and the Notes are provided below.

Income StatementThe Income Statement shows the sources of revenue earned and the operating (or day-to-day) expenses incurred during the financial year. Capital asset purchases are not included in the Statement of Financial Performance because assets have a life greater than 12 months. Instead, there is an item for “Depreciation”. This value is the value of assets used up during the year. This arrangement ensures that the cost of an asset is matched to the period in which it is used rather than just the period in which it was purchased.

Balance SheetThe Balance Sheet is a snap shot of the financial situation at 30 June. It shows in total value what the Council owns as Assets and what it owes as Liabilities. The bottom line of this Statement is Net Assets. This is the net worth of Council, built up over many years.

The assets and liabilities are separated into Current and Non-Current categories. Current means those assets or liabilities that will fall due in the next 12 months.

The items included in the Balance Sheet are:

Current AssetsCash and cash equivalents - Cash held in a bank, on hand •as petty cash or cash register floats and bank bills or term deposits that mature within the next 12 months.

Trade and other receivables - Monies owed to Council by •ratepayers and others who have been invoiced or bills sent.

Accrued income – Income that has been earned but not •received by the 30 June such as interest.

Prepayments – This represents payments made during the •reporting year for services either in part or in full that will be delivered in a future reporting period.

Inventories - Frequently used goods and materials purchased •in advance to minimise delays in undertaking works.

Non-current assets classified as held for sale – Represents •non-current assets such as land that are ready for sale and a decision has been made to sell within the next 12 months.

Non-Current AssetsTrade and other receivables - Monies owed to Council by •ratepayers and others that are not due for payment within the next 12 months.

Financial assets – Bank bills and term deposits that have •been invested for periods longer than 12 months that also will not mature within the next 12 months.

Plain English Guide to the Financial Statements


17 | Plain English Guide to the Financial Statements (continued)

Investments in associates - The value of Council’s equity in •the Central Highlands Regional Library Service.

Property infrastructure, plant & equipment, land, buildings, •roads, vehicles, equipment, etc. which have been built up by Council over many years.

Current and Non-Current LiabilitiesTrade and other payables - People and businesses to whom •Council owes money.

Trust funds and deposits – Money held on behalf of other •people or business that will be refunded at some point in the future.

Provisions - The accrued value of Long Service Leave and •Annual Leave

Interest bearing loans and borrowings - The outstanding •balance Council owes on Bank loans. Current interest bearing loans and borrowings represent the amount to be repaid in 2009/2010

Net Assets and Total EquityThese terms describe the worth that the Council has built up over many years. Net Assets is the difference between all the assets and all the liabilities. Total Equity is the term used to describe the components of Net Assets. These components are:

Accumulated surplus - The value of all net assets, other than •those directly below, which has been accumulated over time.

Asset revaluation reserve - The difference between the •previously recorded value of assets and their current valuation.

Statutory reserves - Funds that have restrictions placed on •their use and are not readily available for use by Council.

Discretionary reserves – Funds that Council has set aside for •a specific purpose.

A reduction in total equity means that the overall value of the Shire has fallen. There can be many reasons for this. However, it usually means that the level of new capital investment has not kept pace with depreciation. This is not unusual in the short term because of the cyclical nature of asset replacement. However, in the longer term and in the absence of a conscious decision to downsize, a reduction in total equity can be of concern.

Statement of Changes In EquityOver the course of the year the values which make up Total Equity can change. This Statement shows the values of changes and how these changes arose.

The most important value to consider is the movement in the Accumulated Surplus. Movements arise from a reduction in the value of Council’s major asset groups or an increase in liabilities.

Cash Flow StatementThe Cash Flow Statement summarises cash payments and cash received for the year. The values in this Statement may differ from those shown in the Income Statement because the Income Statement is prepared on an accrual accounting basis i.e. taking into account payments due but not made and money due but not received.

Council’s cash arises from, and is used in, three main areas:

Cash Flows from Operating Activities:

ReceiptsAll cash received arising from the general operations of Council. It includes rates, general trading sales and debtors, grants and interest earnings. Cash from the sale of assets or loan funds is not included.

PaymentsAll cash paid by Council from its bank account to staff, creditors and other persons. It does not include the costs associated with the creation or purchase of assets.

Cash Flows from Investing Activities:The accounting term Investing Activities relates to the purchase and sale of assets such as land, buildings, plant and other long-term revenue producing assets.

Cash Flows from Financing Activities:This is where the receipt and repayment of borrowed funds is recorded.

The bottom line of the Statement of Cash Flows is the Cash at the End of Financial Year. This shows the cash position of Council to meet its debts and other liabilities.

Notes to the AccountsThe Notes are a very important and informative section of the report. They form a part of the Financial Statements. The Australian Accounting Standards sometimes offer alternative ways to record and value transactions or assets. The method chosen by Council is shown in the Notes.

Apart from describing the main accounting policies (Note 1) details are also provided on many of the summary figures contained in the Statements. The Note numbers are the key and refer to particular items shown in the four main Statements.

The Notes also provide an opportunity for Council to disclose additional information that cannot be incorporated into the Statements.


17 | Plain English Guide to the Financial Statements (continued)

Other Notes disclose information on:

The cost of the various functions of Council,•

The breakdown of expenses, revenues, reserves and other •assets,

Contingent liabilities,•

Transactions with persons related to Council, and•

Financial performance indicators.•

The Notes should be read at the same time as, and together with, the other parts of the Financial Statements to get a clear picture of the accounts.

Statements by Principal Accounting Officer and CouncillorsThe Principal Accounting Officer and two Councillors are required to sign the Financial Statements on behalf of Council.

Auditor General’s ReportThis is the Auditor’s independent opinion on the Financial Statements. The opinion covers both statutory and professional requirements and also the fairness aspects of the Financial Statements.

Hepburn Shire Council 2008-2009 Financial Report

Financial Statements 2008-2009 For the year ended 30 June 2009

Contents40 Income Statement41 Balance Sheet43 Cash Flow Statement44 Notes to the Financial Report

Introduction..................................................................................................................................... 44Note 1 Significant accounting policies ......................................................................................... 44Note 2 Rates and charges............................................................................................................50Note 3 Statutory fees and fines ...................................................................................................50Note 4 User fees ..........................................................................................................................51Note 5 Grants ..............................................................................................................................51Note 6 Contributions ....................................................................................................................54Note 7 Reimbursements ..............................................................................................................54Note 8 Other revenue ..................................................................................................................54Note 9 Proceeds from disposal of plant and equipment ................................................................55Note 10 Employee benefits ............................................................................................................55Note 11 Materials and services......................................................................................................55Note 12 Depreciation and amortisation ..........................................................................................56Note 13 Finance costs ...................................................................................................................56Note 14 Other expenses ................................................................................................................56Note 15 Investment in associates ..................................................................................................57Note 16 Cash and cash equivalents ...............................................................................................57Note 17 Trade and other receivables ..............................................................................................58Note 18 Financial assets ...............................................................................................................58Note 19 Inventories .......................................................................................................................58Note 20 Assets held for sale ..........................................................................................................58Note 21 Other assets .....................................................................................................................58Note 22 Property, plant, equipment and infrastructure ...................................................................59Note 23 Trade and other payables .................................................................................................65Note 24 Trust funds and deposits ..................................................................................................65Note 25 Provisions ........................................................................................................................66Note 26 Interest-bearing loans and borrowings ..............................................................................67Note 27 Reserves ..........................................................................................................................68Note 28 Adjustments directly to equity ..........................................................................................71Note 29 Reconciliation of cash flows from operating activities to surplus (deficit) ...........................71Note 30 Reconciliation of cash and cash equivalents .....................................................................71Note 31 Restricted assets..............................................................................................................71Note 32 Superannuation ................................................................................................................72Note 33 Commitments ...................................................................................................................74Note 34 Operating leases ..............................................................................................................75Note 35 Contingent liabilities and contingent assets ......................................................................75Note 36 Financial Instruments .......................................................................................................76Note 37 Auditor’s remuneration .....................................................................................................80Note 38 Related party transactions ................................................................................................80Note 39 Revenue, expenses and assets by function/activities ........................................................81Note 40 Financial ratios (Performance indicators) ..........................................................................82Note 41 Special committees and other activities ............................................................................83

85 Standard Statements 90 Standard Statements of Cash Flows91 Standard Statements of Capital Works93 Notes to Standard Statements94 Statement by Councillors and Principal Accounting Officer95 Independent Auditor’s Report


Income StatementFor the year ended 30 June 2009

Note 2009 2008$ $

Revenue

Rates and charges 2 11,251,994 10,107,586

Statutory fees and fines 3 240,329 249,348

User fees 4 1,177,049 1,015,055

Contributions - Cash 6 (a) 33,317 382,959

Contributions - Non-monetary assets 6 (b) 377,050 -

Grants - Recurrent 5 (a) 5,393,046 5,259,147

Grants - Non-recurrent 5 (b) 1,670,239 1,174,870

Grants - Recurrent Grants Commission 2009 - 2010 5 (d) 858,342 -

Federal Government Regional and Local Community Infrastructure Program 5 (e) 1,547,950 -

Reimbursements 7 128,746 135,930

Other revenue 8 1,040,898 612,022

Total revenue 23,718,960 18,936,917

Expenses

Employee benefits 10 (8,154,604) (7,653,746)

Materials and services 11 (6,268,552) (6,441,446)

Depreciation and amortisation 12 (4,436,911) (4,326,505)

Finance costs 13 (195,158) (136,808)

Other expenses 14 (811,563) (751,334)

Total expenses (19,866,788) (19,309,839)

3,852,172 (372,922)

Net gain/(loss) on disposal of property, plant and equipment. 9 (102,893) 31,906

Transfer of land & buildings (bathhouse redevelopment) 6 (c) 8,945,424 -

Share of net profits/(losses) of associates and joint ventures accounted for by the equity method

15 72,000 (22,000)

Surplus/(deficit) for the year 12,766,703 (363,016)

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


Balance SheetAs at 30 June 2009

Note 2009 2008 $’000 $’000

Assets

Current assets

Cash and cash equivalents 16 5,661,182 2,982,218

Trade and other receivables 17 1,739,330 1,411,127

Inventories 19 24,603 61,134

Non-current assets classified as held for sale 20 - 66,100

Other assets 21 93,783 13,601

Total current assets 7,518,898 4,534,180

Non-current assets

Trade and other receivables 17 1,556 2,359

Financial assets 18 899,196 955,055

Investments in associates accounted for using the equity method 15 447,000 375,000

Property, plant and equipment, infrastructure 22 160,605,531 150,160,328

Total non-current assets 161,953,283 151,492,742

Total assets 169,472,181 156,026,922

Liabilities

Current liabilities

Trade and other payables 23 898,609 1,207,481

Trust funds and deposits 24 795,120 800,696

Provisions 25 1,660,474 1,714,623

Interest-bearing loans and borrowings 26 418,601 372,853

Total current liabilities 3,772,804 4,095,653

Non-current liabilities

Provisions 25 735,742 715,559

Interest-bearing loans and borrowings 26 3,193,164 2,161,784

Total non-current liabilities 3,928,906 2,877,343

Total liabilities 7,701,710 6,972,996

Net Assets 161,770,471 149,053,927

Equity

Accumulated surplus 96,310,981 83,640,371

Reserves 27 65,459,490 65,413,556

Total Equity 161,770,471 149,053,927

The above balance sheet should be read with the accompanying notes.


Statement of Changes in Equity For the year ended 30 June 2009

Note

AssetAccumulated Revaluation Other

Total Surplus Reserve Reserves2009 2009 2009 2009

2009 $ $ $ $

Balance at beginning of the financial year 149,053,927 83,640,371 64,603,782 809,774

Surplus (deficit) for the year 12,766,703 12,766,703 - -

Transfers to other reserves 27 (b) - 32,559 - (32,559)

Transfers from other reserves 27 (b) - (128,652) - 128,652

Gains (losses) from remeasuring available-for-sale

financial assets to fair value:

Recognised during the year 28 (50,159) - - (50,159)

Balance at end of the financial year 161,770,471 96,310,981 64,603,782 855,708

AssetAccumulated Revaluation Other

Total Surplus Reserve Reserves2008 2008 2008 2008

2008 $ $ $ $

Balance at beginning of the financial year 140,852,990 83,668,504 56,190,526 993,960

Surplus (deficit) for the year (363,016) (363,016) - -

Net asset revaluation increment (decrement) 27 (b) 8,603,248 175,492 8,427,756 -

Transfers to other reserves 27 (b) - 244,811 - (244,811)

Transfers from other reserves 27 (b) - (85,420) - 85,420

Impairment losses on revalued assets 28 (14,500) - (14,500) -

Gains (losses) from remeasuring available-for-sale financial

assets to fair value:

Recognised during the year 28 (24,795) - - (24,795)

Balance at end of the financial year 149,053,927 83,640,371 64,603,782 809,774

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


Cash Flow StatementFor the year ended 30 June 2009

2009 2008Inflows/ Inflows/

(Outflows) (Outflows)Note $ $

Cash flows from operating activities

Rates 11,073,785 10,052,029

Statutory fees and fines 240,329 249,348

User charges and other fines (inclusive of GST) 1,093,834 1,058,393

Grants (inclusive of GST) 9,666,477 7,331,489

Contributions (inclusive of GST) 36,649 421,255

Reimbursements (inclusive of GST) 141,621 149,523

Interest 290,484 302,314

Rents (inclusive of GST) 691,203 206,193

Other receipts (inclusive of GST) 106,191 127,636

Net GST refund/payment 450,428 269,436

Payments to suppliers (inclusive of GST) (7,347,020) (7,563,831)

Payments to employees (including redundancies) (8,213,817) (6,436,338)

Other payments (892,719) (826,467)

Net cash provided by (used in) operating activities 29 7,337,445 5,340,980

Cash flows from investing activities

Payments for property, plant and equipment, infrastructure 22 (5,804,425) (6,429,701)

Proceeds from sale of property, plant and equipment, infrastructure 236,928 221,461

Proceeds from sale of other financial assets 5,700 128,761

Repayment of loans and advances from community organisations 3,000 -

Net cash provided by (used in) investing activities (5,558,797) (6,079,479)

Cash flows from financing activities

Finance costs (171,236) (108,181)

Trust funds and deposits (5,576) 185,104

Proceeds from interest bearing loans and borrowings 1,450,000 1,200,000

Repayment of interest bearing loans and borrowings (372,872) (407,855)

Net cash provided by (used in) financing activities 900,316 869,068

Net increase (decrease) in cash and cash equivalents 2,678,964 130,569

Cash and cash equivalents at the beginning of the financial year 2,982,218 2,851,649

30 5,661,182 2,982,218

Restrictions on cash assets 31

The above cash flow statement should be read with the accompanying notes.


Notes to the Financial ReportFor the year ended 30 June 2009

Introduction

The Hepburn Shire Council was established by an Order of the Governor in Council on 19 January 1995 and is a body corporate. The Council’s main office is located at 76 Vincent Street, Daylesford 3460.

This financial report is a general purpose financial report that consists of an Income Statement, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement, and notes accompanying these financial statements. The general purpose financial report complies with Australian Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board, the Local Government Act 1989, and the Local Government (Finance and Reporting) Regulations 2004.

Note 1 Significant accounting policies

(a) Basis of accounting

This financial report has been prepared on the accrual and going concern basis.

This financial report has been prepared under the historical cost convention, except where specifically stated in notes 1(g), 1(i), 1(k) and 1(t).

Unless otherwise stated, all accounting policies are consistent with those applied in the prior year. Where appropriate, comparative figures have been amended to accord with current presentation, and disclosure has been made of any material changes to comparatives.

All entities controlled by Council that have material assets or liabilities, such as Special Committees of Management, have been included in this financial report. All transactions between these entities and the Council have been eliminated in full. Details of entities not included in this financial report based on their materiality are detailed in note 41.

(b) Revenue recognition

Rates, grants and contributions

Rates, grants and contributions (including developer contributions) are recognised as revenues when the Council obtains control over the assets comprising these receipts.

Control over assets acquired from rates is obtained at the commencement of the rating year as it is an enforceable debt linked to the rateable property or, where earlier, upon receipt of the rates.

A provision for doubtful debts on rates has not been established as unpaid rates represents a charge against the rateable property that will be recovered when the property is next sold.

Control over granted assets is normally obtained upon their receipt (or acquittal) or upon earlier notification that a grant has been secured, and are valued at their fair value at the date of transfer.

Income is recognised when the Council obtains control of the contribution or the right to receive the contribution, it is probable that the economic benefits comprising the contribution will flow to the Council and the amount of the contribution can be measured reliably.

Where grants or contributions recognised as revenues during the financial year were obtained on condition that they be expended in a particular manner or used over a particular period and those conditions were undischarged at balance date, the unused grant or contribution is disclosed in note 5. The note also discloses the amount of unused grant or contribution from prior years that was expended on Council’s operations during the current year.

A liability is recognised in respect of revenue that is reciprocal in nature to the extent that the requisite service has not been provided at balance date.


Notes to the Financial Report For the year ended 30 June 2009

User fees and fines

User fees and fines (including parking fees and fines) are recognised as revenue when the service has been provided, the payment is received, or when the penalty has been applied, whichever first occurs.

A provision for doubtful debts is recognised when collection in full is no longer probable.

Sale of property, plant and equipment, infrastructure

The profit or loss on sale of an asset is determined when control of the asset has irrevocably passed to the buyer.

Interest and rents

Interest and rents are recognised as revenue on a proportional basis when the payment is due, the value of the payment is notified, or the payment is received, whichever first occurs.

(c) Inventories

Inventories held for distribution are measured at cost adjusted when applicable for any loss of service potential. Other inventories are measured at the lower of cost and net realisable value.

(d) Depreciation of non-current assets

Buildings, land improvements, plant and equipment, infrastructure assets, and other assets having limited useful lives are systematically depreciated over their useful lives to the Council in a manner which reflects consumption of the service potential embodied in those assets. Estimates of remaining useful lives and residual values are made on a regular basis with major asset classes reassessed annually. Depreciation rates and methods are reviewed annually.

Where infrastructure assets have separate identifiable components that are subject to regular replacement, these components are assigned distinct useful lives and residual values and a separate depreciation rate is determined for each component.

Road earthworks are not depreciated.

Artworks are not depreciated.

Straight line depreciation is charged based on the residual useful life as determined each year.

Major depreciation periods used are listed below and are consistent with the prior year unless otherwise stated:

PropertyLand land improvements 20 - 100 years Buildings buildings 25 - 150 yearsPlant and Equipment plant, machinery and equipment 3 - 10 years fixtures, fittings and furniture 3 - 20 yearsInfrastructureRoads road pavements and seals 10 - 80 years road substructure 10 - 80 years road formation and earthworks nil road kerb, channel and minor culverts 10 - 65 years Bridges bridges deck 5 - 80 years bridges other 5 - 80 yearsFootpaths & cycle ways 10 - 65 years Drainage 5 - 80 years

Note 1 Significant accounting policies (cont.)




Street Furniture 5 - 80 years Playground Equipment 5 - 80 years Monuments 5 - 80 years Other structures 5 - 80 years

(e) Repairs and maintenance

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

(f) Borrowing costs

Borrowing costs are recognised as an expense in the period in which they are incurred, except where they are capitalised as part of a qualifying asset constructed by Council. Except where specific borrowings are obtained for the purpose of specific asset acquisition, the weighted average interest rate applicable to borrowings at balance date, excluding borrowings associated with superannuation, is used to determine the borrowing costs to be capitalised.

Borrowing costs include interest on bank overdrafts, interest on borrowings, and finance lease charges.

(g) Recognition and measurement of assets

Acquisition

The purchase method of accounting is used for all acquisitions of assets, being the fair value of assets provided as consideration at the date of acquisition plus any incidental costs attributable to the acquisition. Fair value is the amount for which the asset could be exchanged between knowledgeable willing parties in an arm’s length transaction.

Where assets are constructed by Council, cost includes all materials used in construction, direct labour, borrowing costs incurred during construction, and an appropriate share of directly attributable variable and fixed overheads.

The following classes of assets have been recognised in note 22. In accordance with Council’s policy, the threshold limits detailed below have applied when recognising assets within an applicable asset class and unless otherwise stated are consistent with the prior year:

Threshold Limit $’000PropertyLand land 1 land improvements 1 land under roads 1Buildings buildings 1Plant and Equipment plant, machinery and equipment 1 fixtures, fittings and furniture 0.5InfrastructureRoads road pavements and seals 5 road substructure 5 road formation and earthworks 5 road kerb, channel and minor culverts 5Bridges bridges deck 5 bridges substructure 5Footpaths and cycle ways 5Drainage 5Other street furniture 0.5 playground equipment 0.5 monuments 0.5 other structures 0.5 artworks 0.5




(g) Recognition and measurement of assets (cont.)

Revaluation

Subsequent to the initial recognition of assets, non-current physical assets, other than plant and equipment (and other structures), are measured at their fair value, being the amount for which the assets could be exchanged between knowledgeable willing parties in an arms length transaction. At balance date, the Council reviewed the carrying value of the individual classes of assets measured at fair value to ensure that each asset materially approximated its fair value. Where the carrying value materially differed from the fair value at balance date the class of asset was revalued.

In addition, Council undertakes a formal revaluation of land, buildings, and infrastructure assets on a regular basis ranging from 2 to 5 years. The valuation is performed either by experienced council officers or independent experts.

Where the assets are revalued, the revaluation increments are credited directly to the asset revaluation reserve except to the extent that an increment reverses a prior year decrement for that class of asset that had been recognised as an expense in which case the increment is recognised as revenue up to the amount of the expense. Revaluation decrements are recognised as an expense except where prior increments are included in the asset revaluation reserve for that class of asset in which case the decrement is taken to the reserve to the extent of the remaining increments. Within the same class of assets, revaluation increments and decrements within the year are offset.

Land under roads

The Council has elected not to recognise Land Under Roads acquired prior to July 2008 . Land Under Roads acquired post 1 July 2008 will be measured at cost (being the fair value at the date of acquisition).

(h) Cash and cash equivalents

For the purposes of the statement of cash flows, 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.

(i) Other financial assets

Managed funds are valued at fair value, being market value, at balance date. Any unrealised gains and losses on holdings at balance date are recognised as either a revenue or expense.

(j) Investments

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

(k) Accounting for investments in associates

Council’s investment in associates is accounted for by the equity method as the Council has the ability to influence rather than control the operations of the entities. The investment is initially recorded at the cost of acquisition and adjusted thereafter for post-acquisition changes in the Council’s share of the net assets of the entities. The Council’s share of the financial result of the entities is recognised in the income statement.

(l) Tender deposits

Amounts received as tender deposits and retention amounts controlled by Council are recognised as Trust funds until they are returned or forfeited (refer to note 24).

(m) Employee benefits

Wages and salaries

Liabilities for wages and salaries and rostered days off are recognised and measured as the amount unpaid at balance date and include appropriate oncosts such as workers compensation and payroll costs.

Annual leave

Annual leave entitlements are accrued on a pro rata basis in respect of services provided by employees up to balance date and are measured at the amount expected to be paid, including appropriate oncosts, when the accrued obligation is settled.




Long service leave

Long service leave entitlements payable are assessed at balance date having regard to expected employee remuneration rates on settlement, employment related oncosts and other factors including accumulated years of employment, on settlement, and experience of employee departure per year of service. Long service leave expected to be paid within 12 months is measured at nominal value based on the amount expected to be paid when settled. Long service leave expected to be paid later than one year has been measured at the present value of the estimated future cash outflows to be made for these accrued entitlements. Commonwealth bond rates are used for discounting future cash flows.

Classification of employee benefits

An employee benefit liability is classified as a current liability if the Council does not have an unconditional right to defer settlement of the liability for at least 12 months after the end of the period. This would include all annual leave and unconditional long service leave entitlements.

Current - Non Current Classification

Long service leave for employees with 10 or more years continuous service and all annual leave and wages and salaries is classified as current. Long service leave for employees with less than 10 years service is classified as non current.

Superannuation

A liability is recognised in respect of Council’s present obligation to meet the unfunded obligations of defined benefit superannuation schemes to which its employees are members. The liability is defined as the Council’s share of the scheme’s unfunded position, being the difference between the present value of employees’ accrued benefits and the net market value of the scheme’s assets at balance date. The liability includes applicable contributions tax of 15%.

The superannuation expense for the reporting year is the amount of the statutory contribution the Council makes to the superannuation plan which provides benefits to its employees together with any movements (favourable/unfavourable) in the position of any defined benefits schemes. Details of these arrangements are recorded in note 32.

(n) Leases

Operating leases

Lease payments for operating leases are recognised as an expense in the years in which they are incurred as this reflects the pattern of benefits derived by the Council.

(o) Allocation between current and non-current

In the determination of whether an asset or liability is current or non-current, consideration is given to the time when each asset or liability is expected to be settled. The asset or liability is classified as current if it is expected to be settled within the next twelve months, being the Council’s operational cycle, or if the Council does not have an unconditional right to defer settlement of a liability for at least twelve months after the reporting date.

(p) Agreements equally proportionately unperformed

The Council does not recognise assets and liabilities arising from agreements that are equally proportionately unperformed in the balance sheet. Such agreements are recognised on an ‘as incurred’ basis.

(q) Web site costs

Costs in relation to websites are charged as an expense in the period in which they are incurred.

(r) Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the balance sheet are shown inclusive of GST.

Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.




(s) Impairment of assets

At each reporting date, the Council reviews the carrying value of its assets to determine whether there is any indication that these assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the assets carrying value. Any excess of the assets carrying value over its recoverable amount is expensed to the income statement.

(t) Non-current assets held for sale

A non-current asset held for sale is measured at the lower of its carrying amount and fair value less costs to sell.

(u) Pending Accounting Standards

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

AASB amendment

Standards Affected Outline of amendment App. date

of Std

App. date for Council

AASB 2008 - 11 AASB 3 Business Combinations

Amends an earlier version of AASB 3 issued in July 2004. However, before the mandatory application of this Standard the Australian Accounting Standards Board will consider the suitability of this Standard for combinations in the not for profit sector. This may result in further amendments to this Standard or an additional scope exclusion. Consequently, it is not possible to assess the likely impact of this Standard on Council.

1-Jul-09 Year Ending

30/06/10

AASB 2007 - 6 AASB 101 Presentation of Financial Statements

Amends an earlier version of AASB 101 issued in July 2006. This Standard introduces the concept of a “complete set of financial statements” and amends the title of some statements in the accounts. The other change of some relevance to Council relates to reporting owner changes in equity and comprehensive income. No significant impacts are expected to arise from this Standard.

1-Jan-09 Year Ending

30/06/10

AASB 2007 - 8 AASB 123 Borrowing Costs

Amends an earlier version of AASB 123 issued in July 2004. This Standard requires borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset to be capitalised. Previously, entities had the option of expensing such costs. Subject to the existence of borrowings for the purpose of funding capital expenditure, this standard will require related borrowing costs to be capitalised rather than expensed. It is not expected that this will have a material impact on the reported financial performance or position of Council.


30/06/10

AASB 2008 - 5 AASB 127 Consolidated and Separate Financial Statements

Amends an earlier version of AASB 127 issued in July 2004. This standard makes various relatively minor changes. This Standard is not expected to have any impact on Council.

1-Jul-09 Year Ending

30/06/10

AASB 2008-1, AASB 2008-2, AASB 2008-3, AASB 2008-6, AASB 2008-7,

Various These standards make revisions, which are generally minor, to a range of other accounting standards. It is not expected that these Standards will have any significant impact on Council.


30/06/10

(v) Changes in Accounting Policy

There has ben no changes in accounting policy during 2008/2009. However, it should be noted that a new accounting standard AASB1051 - Land Under Roads came into effect in 2008/2009. The standard requires the inclusion of the value of land under roads in the financial statements. The value of land under roads acquired after 1 July 2008 of $49,000 have been included in Council’s asset base.



2009 2008$ $

Note 2 Rates and charges

Council uses capital improved value (CIV) as the basis of valuation of all properties within the municipal district. The CIV of a property is its market value.

The valuation base used to calculate general rates for 2008/2009 was $2,720 million (2007-2008 $2,346 million). The 2008/2009 rate in the CIV dollar was 0.3524 (2007-2008, 0.3598).

Residential 6,036,591 5,445,582

Commercial 991,290 845,579

Industrial 56,007 48,284

Mixed Use 154,014 145,642

Farm 1,214,652 1,128,783

Recreational 8,858 9,628

Vacant Land 850,324 653,200

Trust For Nature 10,346 7,777

Supplementary rates and rate adjustments 296,806 28,008

Municipal charge 210,751 414,894

Garbage charge 360,749 353,992

Waste Management Charge 777,676 747,333

Recycling Charge 283,930 278,884

11,251,994 10,107,586

The date of the latest general revaluation of land for rating purposes within the municipal district was 1 January 2008, and the valuation was first applied in the rating year commencing 1 July 2008.

The date of the next general revaluation of land for rating purposes within the municipal district will be 1 January 2010, and the valuation will be first applied to the rating period commencing 1 July 2010.

Note 3 Statutory fees and fines

Infringements and costs 47,510 28,658

Infringements court recoveries 8,345 5,704

Town planning fees 146,914 178,504

Land information certificates 13,883 17,112

Permits 23,037 18,387

Other 640 983

240,329 249,348



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Hepburn Shire Council 2008-2009 Financial ReportPage 51

2009 2008$ $


Note 4 User fees

Resort and recreation fees* 122,125 73,250

Car parking fees* 917 1,000

Aged services fees 496,537 388,593

Registration fees 214,800 201,369

Building services fees 149,620 144,051

Valuation fees/supplementary charges 8,693 81,916

Waste services fees 108,122 82,762

Other fees and charges 76,235 42,114

1,177,049 1,015,055

* Resort and recreation fees and car parking fees received during the year are transferred to other reserves pursuant to section 18 of the Subdivision Act 1988 (Resort and Recreation Reserve and Car Parking Reserve) (refer note 27).

Note 5 Grants

Grants were received in respect of the following :

Summary of grants

Federally funded grants 1,480,425 638,903

State funded grants 7,989,152 5,795,114

Total 9,469,577 6,434,017

5 (a) Recurrent grants

Commonwealth Government - roads to recovery 587,568 622,453

Commonwealth Government - family and children 17,857 16,450

Victoria Grants Commission - unallocated 2,218,503 2,123,702

Victoria Grants Commission - local roads 1,163,454 1,073,402

Community health 73,221 115,751

School crossing supervisors 7,815 7,815

Planning and development 5,710 12,955

Maternal and child health 142,578 96,822

Family and children 500 500

Food services 31,245 31,244

Home help/linkages 626,782 596,856

Senior citizen centres 25,802 25,162

Transport 104,673 127,072

Adult day care 181,236 184,320

Assessment/welfare support 129,030 131,530

Heritage and culture 12,000 12,000

Local government improvement incentives - 8,385

Youth 21,450 21,450

Other 43,622 51,278

Total recurrent 5,393,046 5,259,147




















2009 2008$ $


Note 5 Grants (cont.)

5 (b) Non-recurrent grants

Community health 280,000 58,983

Commerce and tourism 688,360 -

Roads 189,587 40,000

Recreation 282,594 887,928

Heritage and culture 96,500 134,883

Waste and environment 10,000 7,776

Emergency management 107,598 -

Other 15,600 45,300

Total non-recurrent 1,670,239 1,174,870

5 (c) Conditions on Grants

Grants recognised as revenue during the year that were obtained on condition that they be expended in a specified manner that had not occurred at balance date were:

Federal Government Regional and Local Community Infrastructure Program 277,946 -

Grant for Smeaton bowling club sustainable greens ( recreation) 60,000 -

Grant for Jubilee lake fishing platforms (recreation) 80,612 -

Grant for Clunes bowling club sustainable greens (recreation) 9,559 -

Grant for Doug Lindsay recreation reserve 1,122,950 -

Grant for HMSR risk mitigation & pathway improvement (recreation) - 3,900

Grant for Transport connections front SEEAT program (community services) 86,816 74,838

Grant for Community strengthening (community services) - 5,000

Grant for Noxious weeds (environment management) - 11,300

Grant for Bus shelter (transport) - 5,000

Grant for Economic development officer (economic development) - 12,955

Grant for Creswick town hall refurbishment - 25,000

Grant for Wombat hill gardens recycling plan (recreation) - 50,000

Grant for Trentham training facility (recreation) - 40,000

1,637,883 227,993




















2009 2008$ $


Note 5 Grants (cont.)

5 (c) Conditions on Grants (cont.)

Grants which were recognised as revenue in prior years and were expended during the current year in the manner specified by the grantor were:

Grant HMSR Risk Mitigation & Pathway improvement (recreation) 3,900 -

Grant Transport Connections Front SEEAT Program (community services) 74,838 -

Grant for Community Strengthening (community services) 5,000 -

Grant Noxious Weeds (environment management) 11,300 -

Grant for Bus Shelter (transport) 5,000 -

Grant for Economic Development Officer (economic development) 12,955 -

Grant for Creswick Town Hall refurbishment 25,000 -

Grant for Trentham training facility (recreation) 40,000 -

Grant for drought initiatives (economic development) - 286,400

Grant for repairs to Kingston grandstand (recreation) - 10,000

Grant Clunes town hall drop curtain (recreation) - 10,000

Grant Creswick WW2 memorial (heritage) - 7,000

Grant HMSR Risk Mitigation & Pathway Improvement (recreation) - 46,100

Grant Creswick & District Motor Cycle Club (recreation) - 23,600

Grant Mt Prospect Tennis Association & Park Lake (recreation) - 48,000

Grant Sport & Recreation Drought (recreation) - 56,450

Grant Hepburn Pool Risk Works (recreation) - 85,000

Grant Noxious Weeds (environmental management) - 10,000

HACC Minor Capital (community services) - 40,000

177,993 622,550

Net increase (decrease) in restricted assets resulting from grant revenues for the year: 1,459,890 (394,557)

5 (d) Victorian grants commission early payment

Victoria Grants Commission - unallocated early payment 567,845 -

Victoria Grants Commission - local roads early payment 290,497 -

858,342 -

5 (e) Federal Government Regional and Local Community Infrastructure Program Grants

Commerce and tourism 425,000 -

Recreation 1,122,950 -

1,547,950 -




















2009 2008$ $


Note 6 Contributions

(a) Cash

Roads 3,700 44,765

Recreational, leisure and community facilities 29,617 336,944

Other - 1,250

33,317 382,959

(b) Non-monetary assets

Land under roads 49,000 -

Roads 328,050 -

377,050 -

(c) Significant non-monetary assets

Transfer of land & buildings (bathhouse redevelopment) 8,945,424 -

Total 9,355,791 382,959

The Council has for many years been the Committee of Management of the Hepburn Springs Bath house which is situated on Crown land and as such controlled the facility and the reserve within which the bath house is located.

Substantial refurbishment works were commenced in October 2006 at the expiry of the lease. Under an agreement reached with the State Government in 2006 - 2007 the Council handed control of the facility back to the Crown who appointed Major Projects Victoria (MPV) to manage the redevelopment. On completion of the project the Council’s Committee of Management status was reinstated on the 15th August 2008.

The redeveloped bathhouse has been valued by Councils valuer Mr. Vincent Bourke at $12,000,000 and has been brought to account as a significant contribution of $8,945,424 being the balance of the valuation after deducting Council’s contribution to the project of $3,054,576 previously held as Works in Progress.

Note 7 Reimbursements

Other 128,746 135,930

128,746 135,930

Note 8 Other revenue

Interest 201,000 222,102

Interest on rates 87,376 79,703

Rent 635,218 194,184

Sale of materials 39,890 26,342

Supervision and administration fees 50,055 65,811

Reduction in provision for doubtful debts 14,035 14,766

Other 13,324 9,114

1,040,898 612,022




















2009 2008$ $


Note 9 Proceeds from disposal of plant and equipment

Plant and equipment

Proceeds from disposal of assets 138,947 221,461

Written down value of assets sold (244,784) (189,555)

Profit/(loss) on disposal of plant and equipment (105,837) 31,906

Land and buildings

Proceeds from sale of land 97,981 -

Written down value of land sold (66,100) -

Selling expenses (28,937) -

Profit/(loss) on sale of land and buildings 2,944 -

Summary

Proceeds from disposal of assets 236,928 221,461

Written down value of assets sold (310,884) (189,555)

Selling expenses (28,937) -

Profit/(loss) on disposal of assets (102,893) 31,906

Note 10 Employee benefits

Wages and salaries 7,286,283 6,832,283

Annual leave and long service leave 45,467 43,396

Superannuation 577,468 539,350

Fringe benefits tax and work cover 245,386 238,717

8,154,604 7,653,746

Note 11 Materials and services

Waste management 1,429,157 1,469,160

Road construction 1,354,798 1,473,044

Home & community care 318,407 297,090

Building maintenance 17,690 35,964

Cleaning 142,900 139,784

Swimming pools 177,582 178,922

Other 127,773 106,199

Materials 2,427,163 2,468,076

Utility payments 273,082 273,207

6,268,552 6,441,446




















2009 2008$ $


Note 12 Depreciation and amortisation

Property

Land

Land improvements 151,950 145,400

Buildings

Buildings 412,228 509,495

Plant and Equipment

Plant, machinery and equipment 517,299 535,139

Fixtures, fittings and furniture 44,160 44,738

Computers and telecommunications 106,853 107,853

Infrastructure

Roads 2,713,506 2,541,481

Bridges 115,168 100,139

Footpaths and cycleways 57,136 51,257

Kerb and channel 134,991 127,428

Drainage 90,780 85,567

Other infrastructure 92,840 78,009

4,436,911 4,326,505

Note 13 Finance costs

Interest - Borrowings 195,158 136,808

195,158 136,808

Note 14 Other expenses

Auditors’ remuneration 44,015 41,185

Councillors’ allowances 110,865 72,401

Insurances 192,798 226,436

Risk management 2,725 22,317

Grants and donations 49,155 39,780

Contribution to Central Highlands Regional Library Service 315,632 253,698

Other 96,373 95,517

811,563 751,334




















2009 2008$ $


Note 15 Investment in associates

Investments in associates accounted for by the equity method are:

Central Highlands Regional Library Corporation

- Councils share of net profit/(loss) 72,000 (22,000)

72,000 (22,000)

Central Highlands Regional Library Corporation

Background

Central Highlands Regional Library Corporation established in April 1997 provides library services across 6 municipalities with Hepburn Shire Council having a 10.58% share in ownership (10.07% 2008)

Council’s share of accumulated surplus(deficit)

Council’s share of accumulated surplus(deficit) at start of year 210,000 232,000

Reported surplus(deficit) for year 72,000 (22,000)

Council’s share of accumulated surplus(deficit) at end of year 282,000 210,000

Council’s share of reserves

Council’s share of reserves at start of year 165,000 165,000

Council’s share of reserves at end of year 165,000 165,000

Movement in carrying value of specific investment

Carrying value of investment at start of year 375,000 397,000

Share of surplus(deficit) for year 72,000 (22,000)

Carrying value of investment at end of year 447,000 375,000

Council’s share of expenditure commitments

Operating commitments 58,000 42,000

58,000 42,000

Note 16 Cash and cash equivalents

Cash on hand 4,950 4,150

Cash at bank 818,274 436,183

Money market call account 1,184,294 1,870,530

Bank bills 3,653,664 671,355

5,661,182 2,982,218

Users of the financial report should refer to Note 31 for details of restrictions on cash assets and note 33 for details of existing Council commitments




















2009 2008$ $


Note 17 Trade and other receivables

Current

Rates debtors 995,347 816,334

Parking infringement debtors 8,282 5,626

Provision for doubtful debts - parking infringements (3,476) (1,978)

Government grants 164,386 209,043

Other debtors 519,343 368,114

Provision for doubtful debts - other debtors (12,866) (35,131)

Powercor community extensions 3,731 8,980

Heritage loans - 870

Loans and advances to community organisations - 3,000

Special charge schemes 2,262 2,262

Net GST receivable 62,321 34,007

1,739,330 1,411,127

Non-current

Special charge scheme 1,556 2,359

1,556 2,359

Total 1,740,886 1,413,486

Note 18 Financial assets

Non-current

Financial asset available for sale 899,196 955,055

899,196 955,055

Note 19 Inventories

Depot materials 24,603 61,134

24,603 61,134

Note 20 Assets held for sale

Land at Council valuation 30 June 2008 - 66,100

- 66,100

Note 21 Other assets

Current

Prepayments 87,765 5,475

Accrued income 6,018 8,126

93,783 13,601




















2009 2008$ $


Note 22 Property, plant, equipment and infrastructure

Summary

at cost 23,976,485 21,276,298

Less accumulated depreciation (3,335,608) (3,389,637)

20,640,877 17,886,661

at Council valuation as at 30 June 2008 250,002,215 238,002,215


139,964,654 132,273,667

Total 160,605,531 150,160,328

Property

Land


21,779,500 21,119,500

Land under roads

at deemed cost 49,000 -

49,000 -

Land improvements

at cost 4,582,379 4,582,379

Less accumulated depreciation (809,803) (657,853)

3,772,576 3,924,526

Total Land 25,601,076 25,044,026

Buildings

at cost 1,510,930 355,905


1,499,263 352,931


Less Accumulated depreciation (25,407,284) (25,003,749)

25,373,816 14,437,351

Total Buildings 26,873,079 14,790,282

Total Property 52,474,155 39,834,308

Valuation of land and buildings were undertaken by a qualified independent valuer Vincent Bourke AAPI of Rating Valuation Services. The valuation of buildings is at fair value based on current replacement cost less accumulated depreciation at the date of valuation. The valuation of land is at fair value, being market value based on highest and best use permitted by relevant land planning provisions. Other lands which could not be sold due to zoning restrictions are normally valued at 30% of full value.




















2009 2008$ $


Land under roads is valued at deemed cost. Deemed cost at the date acquired is calculated using site values adjusted for englobo (undeveloped and/or unserviced) characteristics, access rights and private interests of other parties and entitlements of infrastructure assets and services.

Plant and Equipment

Plant, machinery and equipment

at cost 5,030,537 4,675,590


2,801,072 2,781,495

Fixtures, fittings and furniture

at cost 603,617 543,754


246,206 220,503

Computers and telecommunications

at cost 596,722 529,117


78,173 127,422

Art Works

at cost 341,085 341,085

341,085 341,085

Total Plant and Equipment 3,466,536 3,470,505

Infrastructure

Roads

at cost 7,017,356 4,692,405


6,900,042 4,633,747



75,104,281 77,759,134

Bridges

at cost 1,049,938 907,445

Less accumulated depreciation (9,074) -

1,040,864 907,445



6,318,681 6,424,774

Footpaths and cycleways

at cost 595,521 483,841


576,060 474,057

Note 22 Property, plant, equipment and infrastructure (cont.)




















2009 2008$ $




1,284,817 1,332,276

Drainage

at cost 207,728 207,728


198,400 201,596



4,430,422 4,518,006

Kerb & Channel

at cost 12,511 12,511

Less accumulated depreciation (834) (626)

11,677 11,885



4,380,292 4,515,075

Street Furniture



1,710,622 1,744,488

Monuments

at Council valuation as at 30 June 2008 539,263 539,263


298,375 309,160

Playground Equipment

at cost 84,622 65,784


76,740 61,738

at Council valuation as at 30 June 2008 405,032 405,032


93,651 113,903

Other Structures

at cost 534,425 468,691


479,802 438,168

Total Infrastructure 102,904,726 103,445,452

The valuation of infrastructure assets and street furniture has been undertaken by Richard Russell B.Eng. (Civil Hons), BA (Ceramics Hons), Graduate Diploma in Management (Technology).

The valuation is at fair value based on replacement cost less accumulated depreciation as at the date of valuation.





















2009 2008$ $


Works in progress

Buildings at cost 1,200,697 195,188

Bathhouse - 2,948,735

Roads at cost 66,211 46,118

Bridges at cost 49,559 -

Infrastructure 234,136 65,855

Other 209,511 154,167

Total Works in progress 1,760,114 3,410,063

Total Property, Plant and Equipment, Infrastructure 160,605,531 150,160,328






















2009

Balance at beginning of

financial yearAcquisition

of assetsContributed

assets

Depreciation and

amortisation

Written down

value of disposals

Impairment losses

recognised in profit or

loss Transfers

Balance at end of financial

year(note 12) (a)

$ $ $ $ $ $ $ $


Property

land 21,119,500 - 660,000 - - - - 21,779,500

land under roads - - 49,000 - - - - 49,000

land improvements 3,924,526 - - 151,950 - - - 3,772,576

Total land 25,044,026 - 709,000 151,950 - - - 25,601,076

buildings 14,790,282 1,142,129 8,285,424 412,228 - - 3,067,472 26,873,079

Total buildings 14,790,282 1,142,129 8,285,424 412,228 - - 3,067,472 26,873,079

Total property 39,834,308 1,142,129 8,994,424 564,178 - - 3,067,472 52,474,155

Plant and Equipment

plant, machinery and equipment 2,781,495 781,660 - 517,299 244,784 - - 2,801,072

fixtures, fittings and furniture 220,503 69,863 - 44,160 - - - 246,206

computers and telecommunications 127,422 57,604 - 106,853 - - - 78,173

Art Works 341,085 - - - - - - 341,085

Total plant and equipment 3,470,505 909,127 - 668,312 244,784 - - 3,466,536

Infrastructure

roads 82,392,881 1,996,898 328,050 2,713,506 - - - 82,004,323

bridges 7,332,219 142,494 - 115,168 - - - 7,359,545

footpaths and cycleways 1,806,333 111,680 - 57,136 - - - 1,860,877

drainage 4,719,602 - - 90,780 - - - 4,628,822

kerb & channel 4,526,960 - - 134,991 - - - 4,391,969

street furniture 1,744,488 - - 33,866 - - - 1,710,622

monuments 309,160 - - 10,785 - - - 298,375

playground equipment 175,641 18,839 - 24,089 - - - 170,391

other structures skate parks etc. 438,168 62,104 - 24,100 - - 3,630 479,802

Total infrastructure 103,445,452 2,332,015 328,050 3,204,421 - - 3,630 102,904,726

Works in progress

buildings 195,188 1,124,246 - - - - (118,737) 1,200,697

bathhouse 2,948,735 - - - - - (2,948,735) -

roads 46,118 20,093 - - - - - 66,211

bridges - 49,559 - - - - - 49,559

infrastructure 65,855 168,281 - - - - - 234,136

other 154,167 58,974 - - - - (3,630) 209,511

Total works in progress 3,410,063 1,421,153 - - - - (3,071,102) 1,760,114

Total property, plant and equipment, infrastructure 150,160,328 5,804,424 9,322,474 4,436,911 244,784 - - 160,605,531

(a) Impairment losses Impairment losses are recognised in the income statement under other expenses. Reversals of impairment losses are recognised in the income statement under other revenue.





















2008 Balance at beginning of

financial yearAcquisition

of assets

Revaluation increments

(decrements)

Depreciation and

amortisation

Written down

value of disposals

Impairment losses

recognised in profit or

loss Transfers

Balance at end of financial

year(note 27) (note 12) (a)

$ $ $ $ $ $ $ $


Property

land 18,692,250 - 2,427,250 - - - - 21,119,500

land improvements 3,446,395 92,239 - 145,400 - - 531,292 3,924,526

Total land 22,138,645 92,239 2,427,250 145,400 - - 531,292 25,044,026

buildings 14,182,413 221,018 761,458 509,495 - - 134,888 14,790,282

Total buildings 14,182,413 221,018 761,458 509,495 - - 134,888 14,790,282

Total property 36,321,058 313,257 3,188,708 654,895 - - 666,180 39,834,308

Plant and Equipment

plant, machinery and equipment 2,888,997 617,193 - 535,139 189,556 - - 2,781,495

fixtures, fittings and furniture 240,774 24,466 - 44,737 - - - 220,503

computers and telecommunications 169,737 65,538 - 107,853 - - - 127,422

Art Works 341,085 - - - - - - 341,085

Total plant and equipment 3,640,593 707,197 - 687,729 189,556 - - 3,470,505

Infrastructure

roads 78,509,675 2,026,716 4,363,765 2,541,481 - - 34,206 82,392,881

bridges 6,177,473 372,034 347,440 100,139 - - 535,411 7,332,219

footpaths and cycleways 1,507,085 243,413 74,785 51,258 - - 32,308 1,806,333

drainage 4,525,831 3,091 253,546 85,567 - - 22,701 4,719,602

kerb & channel 4,401,007 - 253,381 127,428 - - - 4,526,960

street furniture 1,678,545 - 97,899 31,956 - - - 1,744,488

monuments 301,990 - 17,350 10,180 - - - 309,160

playground equipment 167,618 22,980 6,392 21,349 - - - 175,641

other structures skate parks etc. 245,832 173,577 - 14,513 - - 33,272 438,168

Total infrastructure 97,515,056 2,841,811 5,414,558 2,983,871 - - 657,898 103,445,452

Works in progress

buildings 194,564 135,512 - - - - (134,888) 195,188

bathhouse 711,736 2,236,999 - - - - - 2,948,735

roads 89,215 46,118 - - - - (89,215) 46,118

bridges 535,411 - - - - - (535,411) -

infrastructure 84,826 14,301 - - - - (33,272) 65,855

other 550,953 134,506 - - - - (531,292) 154,167

Total works in progress 2,166,705 2,567,436 - - - - (1,324,078) 3,410,063

Total property, plant and equipment, infrastructure 139,643,412 6,429,701 8,603,266 4,326,495 189,556 - - 150,160,328

(a) Impairment losses Impairment losses are recognised in the income statement under other expenses. Reversals of impairment losses are recognised in the income statement under other revenue.





















2009 2008$ $

Note 23 Trade and other payables

Trade payables 829,573 1,162,367

Accrued expenses 69,036 45,114

898,609 1,207,481

Note 24 Trust funds and deposits

Refundable building deposits 99,508 111,824

Refundable contract deposits 2,500 2,500

Refundable civic facilities deposits 9,400 6,900

Retention amounts 29,013 26,970

Other refundable deposits 112,587 111,199

Trust deposits 542,112 541,303

795,120 800,696

The purposes for which trust funds are held and the nature of any restriction imposed on the manner in which these can be applied.

Details of trust deposits:

Litherland bequest 90,400 90,400

(Preservation of art collection at Creswick museum)

Medlyn estate 21,600 21,600

(Preservation of bottle collection at Clunes)

VicRoads agency & signage account 608 429

(Money collected on behalf of VicRoads)

Community playground appeal 1,083 1,083

F. Shaw bequest 10,000 10,000

(Preservation of art collection at Creswick museum)

Mineral water trust 396,130 396,130

James Jasper Strachan appeal - commemoration 6,345 6,345

Dress down day - charity donation 530 331

McGinty trust 3,785 3,785

(General support for Daylesford day activity centre)

Friends of the library - 1,111

Creswick Development Committee 11,631 9,449

Various small trust accounts(5) - 640

542,112 541,303





















Annual leaveLong service

leaveLandfill

restoration Other Total$ $ $ $ $

Note 25 Provisions

2009

Balance at beginning of the financial year 690,895 949,938 516,200 27,000 2,184,033

Additional provisions 485,567 252,675 - - 738,242

Amounts used (479,607) (209,196) (20,220) - (709,023)

Balance at the end of the financial year 696,855 993,417 495,980 27,000 2,213,252

2008

Balance at beginning of the financial year 616,702 889,997 651,420 27,000 2,185,119

Additional provisions 493,798 187,693 - - 681,491

Amounts used (419,605) (127,752) (135,220) - (682,577)

Balance at the end of the financial year 690,895 949,938 516,200 27,000 2,184,033

(a) Employee benefits

Current

Annual leave 696,855 651,388

Long service leave 760,435 706,464

Accrued salaries and wages 182,964 336,551

1,640,254 1,694,403

Non-current

Long service leave 232,982 192,579

232,982 192,579

Aggregate carrying amount of employee benefits:

Current 1,640,254 1,694,403

Non-current 232,982 192,579

1,873,236 1,886,982

The following assumptions were adopted in measuring the present value of employee benefits:

Weighted average increase in employee costs 3.50% 4.75%

Weighted average discount rates 3.61% 6.58%

Weighted average settlement period 10 10

The amount of long service leave estimated to be taken in 2009/10 is $240,000 ($209,196 in 2008/09).

2009 2008$ $




















2009 2008$ $


(b) Provisions

Pit Restoration Reserve

Non-current 27,000 27,000

Total 27,000 27,000

Creswick Tip Rehabilitation Reserve

Current 9,520 9,520

Non-current 218,960 228,480

Total 228,480 238,000

Daylesford Tip Rehabilitation Reserve

Current 10,700 10,700

Non-current 256,800 267,500

Total 267,500 278,200

Total Provisions

Current 1,660,474 1,714,623

Non-current 735,742 715,559

Total 2,396,216 2,430,182

Note 25 Provisions (cont.)

Note 26 Interest-bearing loans and borrowings

Current

Borrowings - secured 418,601 372,853

Non-current

Borrowings - secured 3,193,164 2,161,784

Total 3,611,765 2,534,637

The maturity profile for Council’s borrowings is:

Not later than one year 418,601 372,853

Later than one year and not later than five years 1,618,135 1,118,203

Later than five years 1,575,029 1,043,581

3,611,765 2,534,637

Aggregate carrying amount of interest-bearing loans and borrowings:

Current 418,601 372,853

Non-current 3,193,164 2,161,784

3,611,765 2,534,637






















reporting period$

Transfer from accumulated

surplus$

Transfer to accumulated

surplus$

Increment (decrement)

$

Balance at end of reporting

period$

Note 27 Reserves

(a) Asset revaluation reserves

2009

Property

Land 14,599,786 - - - 14,599,786

Land improvements 89,974 - - - 89,974

Buildings 11,883,947 - - - 11,883,947

26,573,707 - - - 26,573,707

Infrastructure

Roads 28,186,754 - - - 28,186,754

Other infrastructure 9,843,321 - - - 9,843,321

38,030,075 - - - 38,030,075

Total Asset revaluation reserves 64,603,782 - - - 64,603,782

2008

Property

Land 12,187,036 2,412,750 - - 14,599,786

Land improvements 89,974 - - - 89,974

Buildings 11,122,489 761,458 - - 11,883,947

Equity in CHRLS 171,642 - (171,642) - -

Art Works 3,850 - (3,850) - -

23,574,991 3,174,208 (175,492) - 26,573,707

Infrastructure

Roads 23,494,842 4,691,912 - - 28,186,754

Other infrastructure 9,120,693 722,628 - - 9,843,321

32,615,535 5,414,540 - - 38,030,075

Total Asset revaluation reserves 56,190,526 8,588,748 (175,492) - 64,603,782






















reporting period$


surplus$


surplus$


$


period$

Note 27 Reserves (cont.)

(b) Other reserves

2009

Heritage Advisory Fund 20,000 - - - 20,000

The purpose of this reserve is to provide low interest loans for heritage renovations

Car Parking Reserve 20,250 917 - - 21,167

The purpose of this reserve is to provide for future car parking

Drainage Reserve 300 - - - 300

The purpose of this reserve is to provide future drainage

Smeaton Hill Pit Reserve 68,809 5,610 - - 74,419

The purpose of this reserve is to provide future reinstatement of Smeaton Hill gravel pit

Mt Beckworth Pit Reserve 27,772 - - - 27,772

The purpose of this reserve is to provide future reinstatement of Mt Beckworth gravel pit

Plant Replacement Reserve 37,425 - - - 37,425

The purpose of this reserve is to provide future replacement of plant

Clunes Caravan Park Reserve 10,500 - - - 10,500

The purpose of this reserve is to provide future improvements at Clunes Caravan Park

Waste Management Reserve 120,600 - (28,000) - 92,600

The purpose of this reserve is to provide future waste management improvements

Resort and recreation reserve 528,913 122,125 (4,559) - 646,479

The purpose of this reserve is to provide future recreation

Financial Asset Valuation Reserve (24,795) - - (50,159) (74,954)

To allow for the movement in valuation of financial assets available for sale

Total Other reserves 809,774 128,652 (32,559) (50,159) 855,708






















reporting period$


surplus$


surplus$


$


period$

Note 27 Reserves (cont.)

(b) Other reserves (cont.)

2008

Heritage Advisory Fund 20,000 - - - 20,000

The purpose of this reserve is to provide low interest loans for heritage renovations

Mineral Springs Reserve 17,250 - (17,250) - -

spa complex

Car Parking Reserve 19,250 1,000 - - 20,250

parking

Drainage Reserve 300 - - - 300

The purpose of this reserve is to provide future drainage

Smeaton Hill Pit Reserve 57,639 11,170 - - 68,809

The purpose of this reserve is to provide future reinstatement of Smeaton Hill gravel pit

Mt Beckworth Pit Reserve 27,772 - - - 27,772

The purpose of this reserve is to provide future reinstatement of Mt Beckworth gravel pit

Plant Replacement Reserve 85,000 - (47,575) - 37,425

The purpose of this reserve is to provide future replacement of plant

Clunes Caravan Park Reserve 10,500 - - - 10,500

The purpose of this reserve is to provide future improvements at Clunes Caravan Park

Waste Management Reserve 284,100 - (163,500) - 120,600

The purpose of this reserve is to provide future waste management improvements

Resort and recreation reserve 472,149 73,250 (16,486) - 528,913

The purpose of this reserve is to provide future recreation

Financial Asset Valuation Reserve - - - (24,795) (24,795)

To allow for the movement in valuation of financial assets available for sale

Total Other reserves 993,960 85,420 (244,811) (24,795) 809,774




















2009 2008$ $


Note 28 Adjustments directly to equity

Impairment losses on revalued assets - (14,500)

Gains (losses) from remeasuring available-for-sale financial assets to fair value:

Recognised during the year (50,159) (24,795)

Note 29 Reconciliation of cash flows from operating activities to surplus (deficit)

Surplus/(deficit) for the year 12,766,703 (363,016)

Depreciation/amortisation 4,436,911 4,326,505

(Profit)/loss on disposal of property, plant and equipment, infrastructure 102,893 (31,906)

Finance Costs 171,236 108,181

Contributions - Non-monetary assets (9,322,474) -

Change in assets and liabilities:

(Increase)/decrease in trade and other receivables (383,166) 620,523

Increase/(decrease) in accrued income (129,665) 56,310

Increase/(decrease) in trade and other payables (380,312) 458,597

(Decrease)/increase in other liabilities 45,467 34,686

(Decrease) in provisions 74,154 (126,174)

(Increase)/decrease in other assets (44,302) 257,274

Net cash provided by/(used in) operating activities 7,337,445 5,340,980

Note 30 Reconciliation of cash and cash equivalents

Cash and cash equivalents (see note 16) 5,661,182 2,982,218

5,661,182 2,982,218

Note 31 Restricted assets

Council has cash and cash equivalents (note 16) and financial assets (note 18) that are subject to restrictions. As at the reporting date, Council had legislative restrictions in relation to employee entitlements (Long Service Leave) and reserve funds (Car Parking, Drainage and Resort and Recreation Reserves).

Long service leave (note 25) 831,570 763,782

Reserve funds (note 27) 667,946 549,463

1,499,516 1,313,245

* Restricted asset for long service leave is based on the Local Government (Long Service Leave) Regulations 2002 and does not necessarily equate to the long service leave liability disclosed in note 25 due to a different basis of calculation prescribed by the regulation.





















Note 32 Superannuation

Post-employment benefit

Council makes employer superannuation contributions in respect of its employees to the Local Authorities Superannuation Fund (the Fund). Obligations for contributions are recognised as an expense in profit or loss when they are due. The Fund has two categories of membership, each of which is funded differently.

The Fund’s accumulation category, Vision Super Saver, receives both employer and employee contributions on a progressive basis. Employer contributions are normally based on a fixed percentage of employee earnings (9% required under Superannuation Guarantee Legislation). No further liability accrues to the employer as the superannuation benefits accruing to employees are represented by their share of the net assets of the Fund.

Defined benefit

The Fund’s Defined Benefit Plan is a multi-employer sponsored plan. As the Plan’s assets and liabilities are pooled and are not allocated by employer, the Actuary is unable to reliably allocate benefit liabilities, assets and costs between employers. As provided under Paragraph 32 (b) of AASB 119, Council does not use defined benefit accounting for these contributions.

Council makes employer contributions to the defined benefit category of the Fund at rates determined by the Trustee on the advice of the Fund’s Actuary. On the basis of the results of the most recent full actuarial investigation conducted by the Fund’s actuary as at 31 December 2008. Council makes the following contributions:-

- 9.25% of members’ salaries (9.25% 2008);

- the difference between resignation and retrenchment benefits paid to any retrenched employees, plus contribution tax (same as previous year);

Fund surplus or deficit (i.e. the difference between fund assets and liabilities) are calculated differently for funding purposes (i.e. calculating required contributions) and for the calculation of accrued benefits as required in AAS 25 to provide the values needed for the AASB 119 disclosure in a council’s financial statements. AAS 25 requires that the present value of the benefit liability which is calculated in respect of membership completed at the calculation date makes no allowance for future benefits that may accrue. The actuarial investigation concluded that although the Net Market Value of Assets was in excess of Accrued Benefits at 31 December 2008, based on the assumptions adopted, there was a shortfall of $71 million when the funding of future benefits was also considered. However, the council has been advised that no additional contributions will be required as at 30 June 2009. The Actuary will undertake the next actuarial investigation as at 30 June 2010 to ascertain if additional contributions are required.

Accounting standard disclosure

The Fund’s liability for accrued benefits was determined by the Actuary at 31 December 2008 pursuant to the requirements of Australian Accounting Standard AAS25 follows:

31-Dec-08$’000

Net Market Value of Assets 3,630,432

Accrued Benefits (per accounting standards) 3,616,422

Difference between Assets and Accrued Benefits 14,010

Vested Benefits (Minimum sum which must be paid to members when they leave the fund) 3,561,588

The financial assumptions used to calculate the Accrued Benefits for the defined benefit category of the Fund were:

Net Investment Return 8.50% p.a.

Salary Inflation 4.25% p.a.

Price Inflation 2.75% p.a.





















Note 32 Superannuation (cont.)

Council also makes employer superannuation contributions in respect of its employees to 13 (2007-2008, 15) other superannuation funds.

These Fund’s are accumulation funds that receive both employer and employee contributions on a progressive basis. Employer contributions are normally based on a fixed percentage of employee earnings (9% required under Superannuation Guarantee Legislation). No further liability accrues to the employer as the superannuation benefits accruing to employees are represented by their share of the net assets of the Fund.

Details of contributions to superannuation funds during the year and contributions payable at 30 June are as follows:

2009 2008$ $

Employer contributions to Local Authorities Superannuation Fund (Vision Super) 499,091 490,629

Employer contributions payable to Local Authorities Superannuation Fund (Vision Super) at reporting date

- -

Employer contributions to 13 (15 in 2007-2008) other Superannuation Funds 78,377 48,722





















Note 33 Commitments

The Council has entered into the following commitments

Not later than 1 year

Later than 1 year and not

later than 2 years

Later than 2 years and not

later than 5 years

Later than 5 years Total

$ $ $ $ $

2009

Operating

Recycling 78,244 - - - 78,244

Garbage collection 111,848 - - - 111,848

Painting maintenance for council buildings 14,870 14,870 7,434 - 37,174

Maternal & child health services 246,400 - - - 246,400

Transfer stations 226,286 162,783 - - 389,069

Cleaning contracts for council buildings 108,000 - - - 108,000

Meals for delivery 54,792 - - - 54,792

Planning studies 19,250 - - - 19,250

Recreation facilities management 182,542 30,000 30,000 - 242,542

Valuations 144,000 - - - 144,000

Total 1,186,232 207,653 37,434 - 1,431,319

Capital

Buildings 563,483 - - - 563,483

Roads and bridges 967,218 - - - 967,218

Total 1,530,701 - - - 1,530,701

Not later than 1 year

Later than 1 year and not

later than 2 years

Later than 2 years and not

later than 5 years

Later than 5 years Total

$ $ $ $ $

2008

Operating

Recycling 198,122 204,065 - - 402,187

Garbage collection 304,316 304,316 - - 608,632

Painting maintenance for council buildings 24,813 24,813 74,439 11,456 135,521

Maternal & child health services 282,300 292,000 - - 574,300

Transfer stations 245,000 245,000 245,000 - 735,000

Cleaning contracts for council buildings 145,000 - - - 145,000

Recreation facilities management 138,000 145,000 - - 283,000

Total 1,337,551 1,215,194 319,439 11,456 2,883,640

Capital

Roads and bridges 693,864 693,864 - - 1,387,728

Total 693,864 693,864 - - 1,387,728




















2009 2008$ $


Note 34 Operating leases

(a) Operating lease commitments

At the reporting date, the Council had the following obligations under non-cancellable operating leases for the lease of equipment and land and buildings for use within Council’s activities (these obligations are not recognised as liabilities):


Later than one year and not later than five years 9,696 48,480

48,480 87,264

(b) Operating lease receivables

The Council has entered into commercial property leases on some property partly owned and partly managed on behalf of the government, consisting mainly of caravan parks and some buildings located on Crown Land for which the Council is committee of management. These properties held under operating leases have remaining non-cancellable lease terms of between 1 and 20 years. These leases include either a CPI based revision of the rental charge annually or set rental increases included in the lease. The substantial increase in 2008 - 2009 is primarily due to the new 20 year lease for the refurbished Hepburn Bath House.

Future minimum rentals receivable under non-cancellable operating leases are as follows:


Later than one year and not later than five years 2,693,745 521,120

Later than five years 9,114,295 952,351

12,431,852 1,618,055

Note 35 Contingent liabilities and contingent assets

Contingent liabilities

Council has obligations under a defined benefit superannuation scheme that may result in the need to make additional contributions to the scheme to ensure that the liabilities of the fund are covered by the assets of the fund.

The Fund has performed exceptionally well in comparative terms and from a regulatory perspective remained adequately funded as at 31 December 2008. However as a result of the increased volatility in financial markets the likelihood of making such contributions in future periods has increased.

A further actuarial investigation will be carried out on 30 June 2010 and should a shortfall exist at that time a call will be made in respect to the 2011/12 financial year. At this point in time it is not known if additional contributions will be required or the potential amount.





















Note 36 Financial Instruments

(a) Accounting Policy, terms and conditions

Recognised financial instruments Note Accounting Policy Terms and Conditions

Financial assets

Cash and cash equivalents

16 Cash on hand and at bank and money market call account are valued at face value.

On call deposits returned a floating interest rate of 2.27% (6.61% in 2007/2008). The interest rate at balance date was 2.00% (7.00% in 2007/2008).

Investments and bills are valued at cost. Funds returned fixed interest rate of between 3.60% (6.00% in 2007/2008), and 7.65% (8.30% in 2007/2008) net of fees.

Financial assets 18 Managed funds are measured at market value. Managed fund provided return of Nil (1.73% in 2007/2008) excluding unrealised gains/losses

Floating rate notes are measured at market value.

Floating rate notes provided return of 4.56% (6.50% in 2007/2008) excluding unrealised gains/losses

Investments are held to maximise interest returns of surplus cash.

Interest revenues are recognised as they accrue.

Trade and other receivables

Other debtors 17 Receivables are carried at nominal amounts due less any provision for doubtful debts. A provision for doubtful debts is recognised when collection in full is no longer probable. Collectibility of overdue accounts is assessed on an ongoing basis.

General debtors are unsecured, credit terms are based on 30 days.

Financial Liabilities

Trade and other payables

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

General Creditors are unsecured, not subject to interest charges and are normally settled within 21 days of invoice receipt.

Interest-bearing loans and borrowings

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

Borrowings are secured by way of mortgages over the general rates of the Council. The weighted average interest rate on borrowings is 6.74% (6.67% in 2007/2008).





















Note 36 Financial Instruments (cont.)

(b) Interest Rate Risk

The exposure to interest rate risk and the effective interest rates of financial assets and financial liabilities, both recognised and unrecognised, at balance date are as follows:

Fixed interest maturing in:Floating interest

rate1 year or less Over 1 to 5

yearsMore than

5 yearsNon-interest

bearing Total

$ $ $ $ $ $

2009

Financial assets

Cash and cash equivalents 2,002,568 3,653,664 - - 4,950 5,661,182

Financial assets 899,196 - - - - 899,196

Trade and other receivables - 7,549 - - 733,184 740,733

Total financial assets 2,901,764 3,661,213 - - 738,134 7,301,111

Weighted average interest rate 2.27% 3.90%

Financial liabilities

Trade and other payables - - - - 898,609 898,609

Trust funds and deposits - - - - 795,120 795,120

Interest-bearing loans and borrowings - 418,601 1,618,135 1,575,029 - 3,611,765

Total financial liabilities - 418,601 1,618,135 1,575,029 1,693,729 5,305,494

Weighted average interest rate 6.74% 6.54% 6.90%

Net financial assets (liabilities) 2,901,764 3,242,612 (1,618,135) (1,575,029) (955,595) 1,995,617

Fixed interest maturing in:Floating

Interest rate 1 year or less Over 1 to 5 years

More than 5 years

Non-interest bearing Total

$ $ $ $ $ $

2008

Financial assets

Cash and cash equivalents 2,301,856 671,355 9,007 2,982,218

Financial assets 955,055 - - - - 955,055

Trade and other receivables - 6,132 2,359 - 585,013 593,504

Total financial assets 3,256,911 677,487 2,359 - 594,020 4,530,777

Weighted average interest rate 6.89% 4.72% -

Trade and other payables - - - - 1,207,481 1,207,481

Trust funds and deposits - - - - 800,696 800,696

Interest-bearing loans and borrowings - 372,853 1,118,203 1,043,581 - 2,534,637

Total financial liabilities - 372,853 1,118,203 1,043,581 2,008,177 4,542,814

7.11% 7.59% 7.63%

Net financial assets (liabilities) 3,256,911 304,634 (1,115,844) (1,043,581) (1,414,157) (12,037)






















(c) Net Fair Values

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

Balance Sheet Aggregate net fair value

2009 2008 2009 2008Financial Instruments $ $ $ $

Financial assets

Cash and cash equivalents 5,661,182 2,982,218 5,661,182 2,982,218

Other financial assets 899,196 955,055 899,196 955,055

Trade and other receivables 740,733 593,504 740,733 593,504

Total financial assets 7,301,111 4,530,777 7,301,111 4,530,777

Financial liabilities

Trade and other payables 898,609 1,207,481 898,609 1,207,481

Trust funds and deposits 795,120 800,696 795,120 800,696

Interest-bearing loans and borrowings 3,611,765 2,534,637 3,611,765 2,534,637

Total financial liabilities 5,305,494 4,542,814 5,305,494 4,542,814

(d) Credit Risk

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

(e) Risks and mitigation

The risks associated with our main financial instruments and our policies for minimising these risks are detailed below.

Market risk

Market risk is the risk that the fair value or future cash flows of our financial instruments will fluctuate because of changes in market prices. The Council’s exposures to market risk are primarily through interest rate risk with only insignificant exposure to other price risks and no exposure to foreign currency risk. Components of market risk to which we are exposed are discussed below.

Interest rate risk

Interest rate risk refers to the risk that the value of a financial instrument or cash flows associated with the instrument will fluctuate due to changes in market interest rates. Interest rate risk arises from interest bearing financial assets and liabilities that we use. Non derivative interest bearing assets are predominantly short term liquid assets. Our interest rate liability risk arises primarily from long term loans and borrowings at fixed rates which exposes us to fair value interest rate risk.

Our loan borrowings are sourced from major Australian banks by a tender process. Council does not currently have an overdraft. We manage interest rate risk on our net debt portfolio by:

- ensuring access to diverse sources of funding;

- setting prudential limits on interest repayments as a percentage of rate revenue.

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

Investment of surplus funds is made with approved financial institutions under the Local Government Act 1989. We manage interest rate risk by adopting an investment policy that ensures:

- conformity with State and Federal regulations and standards,

- capital protection,

- monitoring of return on investment,

Maturity will be staggered to provide for interest rate variations and to minimise interest rate risk.






















Credit risk

Credit risk is the risk that a contracting entity will not complete its obligations under a financial instrument and cause us to make a financial loss. We have exposure to credit risk on some financial assets included in our balance sheet. To help manage this risk:

- we have a policy for establishing credit limits for the entities we deal with;

- we only invest surplus funds with financial institutions which have a recognised credit rating specified in our investment policy.

Trade and other receivables consist of a large number of customers, spread across the consumer, business and government sectors. Credit risk associated with the Council’s financial assets is minimal because the main debtor is the Victorian Government. Apart from the Victorian Government we do not have any significant credit risk exposure to a single customer or groups of customers. Ongoing credit evaluation is performed on the financial condition of our customers and, where appropriate, an allowance for doubtful debts is raised.

Liquidity risk

Liquidity risk includes the risk that, as a result of our operational liquidity requirements:

- we will not have sufficient funds to settle a transaction on the date;

- we will be forced to sell financial assets at a value which is less than what they are worth; or

- we may be unable to settle or recover a financial assets at all.

To help reduce these risks we:

- have a liquidity policy which targets a minimum and average level of cash and cash equivalents to be maintained;

- monitor budget to actual performance on a regular basis; and

- set limits on borrowings relating to the percentage of loans to rate revenue and percentage of loan principal repayments to rate revenue.

The Councils exposure to liquidity risk is deemed insignificant based on prior periods’ data and current assessment of risk.

(f) Sensitivity disclosure analysis

Taking into account past performance, future expectations, economic forecasts, and management’s knowledge and experience of the financial markets, the Council believes the following movements are ‘reasonably possible’ over the next 12 months :

- A parallel shift of + 1% and -2% in market interest rates (AUD) from year-end rates of 4.4%.

The table below discloses the impact on net operating result and equity for each category of financial instruments held by the Council at year-end, if the above movements were to occur.

Interest rate risk

Market risk exposure Carrying amount subject to

interest

-1%100 basis points

2%200 basis points

Profit Equity Profit Equity$ $ $ $

2009

Financial assets:

Cash and cash equivalents 5,656,232 (56,562) (56,562) 113,125 113,125

Financial assets 899,196 (8,992) (8,992) 17,984 17,984

Trade and other receivables 7,549 (75) (75) 151 151

Financial liabilities:

Interest-bearing loans and borrowings 3,611,765 36,118 36,118 (72,235) (72,235)

2008

Financial assets:

Cash and cash equivalents 2,973,211 (29,732) (29,732) 59,464 59,464

Financial assets 955,055 (9,551) (9,551) 19,101 19,101

Trade and other receivables 8,491 (85) (85) 170 170

Financial liabilities:

Interest-bearing loans and borrowings 2,534,637 25,346 25,346 (50,693) (50,693)




















2009 2008$ $


Note 37 Auditor’s remuneration

Audit fee to conduct external audit - Victorian Auditor-General 25,240 23,500

Internal audit fees - WHK Horwath 16,140 17,385

Minor acquittal and compliance audits 2,635 300

44,015 41,185

Note 38 Related party transactions

(i) Responsible Persons

Names of persons holding the position of a Responsible Person at the Council at any time during the year are:

Councillors Councillor Bill McClenaghan (Mayor > 01/12/08 to current)

Councillor Tim Hayes (Mayor 07/12/07 to 30/11/08)

Councillor David Smith (to 28/11/08)

Councillor Heather Mutimer (to 28/11/08)

Councillor Janine Booth (Current)

Councillor Donald Henderson (01/12/08 to current)

Councillor Rod May (1/12/08 to current)

Councillor Jonathon Barrell (1/12/08 to current)

Councillor Sebastian Klein (1/12/08 to current)

Chief Executive Officer Kaylene Conrick (11/08/08 to current)

Philip Shanahan (01/07/08 to 08/08/08)

(ii) Remuneration of Responsible Persons

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

2009 2008No. No.

$10,000 - $19,999 7 4

$20,000 - $29,999 2 1

$30,000 - $39,999 1 -

$160,000 - $169,999 1 -

11 5

$ $

Total Remuneration for the reporting year for Responsible Persons included above amounted to: 305,124 256,559

(iii) No retirement benefits have been made by the Council to a Responsible Person. (2008/09, Nil).

(iv) No loans have been made, guaranteed or secured by the Council to a Responsible Person during the reporting year (2007/08, Nil).

(v) Other Transactions

No transactions other than remuneration payments or the reimbursement of approved expenses were entered into by Council with Responsible Persons, or Related Parties of such Responsible Persons during the reporting year (2007/08, Nil).





















Note 38 Related party transactions (cont.)

(vi) Senior Officers Remuneration

A Senior Officer other than a Responsible Person, is an officer of Council who has management responsibilities and reports directly to the Chief Executive Officer or whose total annual remuneration exceeds $100,000.

The number of Senior Officers other than the Responsible Persons, are shown below in their relevant income bands:2009

No.2008

No.

Income Range:

<$100,000 7 4

$100,000 - $109,999 1 -

$110,000 - $119,999 - 1

$120,000 - $129,999 1 -

9 5

Total Remuneration for the reporting year for Senior Officers included above, amounted to 642,719 439,106

Note 39 Income, expenses and assets by function/activities

Administration Community Services

Commerce & tourism Heritage & culture Public Safety

2009 2008 2009 2008 2009 2008 2009 2008 2009 2008$ $ $ $ $ $ $ $ $ $

Revenue

Grants 2,795,448 2,126,702 1,735,775 1,444,933 1,119,070 44,818 108,500 146,883 21,343 20,299

Other 10,861,989 9,354,669 732,973 480,646 490,611 457,327 19,639 27,744 294,251 263,344

Total 13,657,437 11,481,371 2,468,748 1,925,579 1,609,681 502,145 128,139 174,627 315,594 283,643

Expenses 5,235,431 4,619,575 3,503,992 2,612,474 1,739,777 1,633,513 819,864 765,789 747,283 735,934

Surplus/(Deficit) For The Year

8,422,006 6,861,796 (1,035,244) (686,895) (130,096) (1,131,368) (691,725) (591,162) (431,689) (452,291)

Assets Attributed To Functions/Activities*

15,326,939 13,053,534 4,552,036 4,732,482 8,973,385 8,912,630 3,146,655 3,131,465 2,353,811 2,389,187

Recreation TransportWaste &

Environment Management

Unclassified Total

2009 2008 2009 2008 2009 2008 2009 2008 2009 2008$ $ $ $ $ $ $ $ $ $

Revenue

Grants 1,405,544 856,065 2,239,606 1,735,855 10,000 7,776 34,291 50,686 9,469,577 6,434,017

Other 9,385,052 406,236 2,112,971 80,607 1,530,476 1,464,232 - - 25,427,962 12,534,805

Total 10,790,596 1,262,301 4,352,577 1,816,462 1,540,476 1,472,008 34,291 50,686 34,897,539 18,968,822

Expenses 1,970,314 2,506,216 6,435,748 4,924,702 1,599,660 1,515,723 78,767 42,708 22,130,836 19,356,634

Surplus/(deficit) for the year

8,820,282 (1,243,915) (2,083,171) (3,108,240) (59,184) (43,715) (44,476) 7,978 12,766,703 (387,812)

Assets attributed to functions/activities*

26,370,983 16,441,126 106,836,038 105,346,133 1,912,334 2,020,365 - - 169,472,181 156,026,922

*Assets have been attributed to functions/activities based on the control and/or custodianship of specific assets.Note 39 Revenue, expenses and assets by function/activities





















Note 39 Income, expenses and assets by function/activities (cont.)

Functions/activities of council

Administration

General operations, Council operations, municipal offices, valuations and supervision, income collection, payroll, accounts payable, financial management accounting, investment and debt management, information technology, legal services, insurance and supply.

Community Services

Maternal and child health, home help, meals on wheels, home maintenance, housing, senior citizens services.

Commerce and Tourism

Community and regional development, tourism and area promotion, community amenities and building control.

Heritage and Culture

Public halls, library services and other cultural activities.

Public Safety

Public health and consumer protection, law, order and public safety.

Recreation

Swimming areas, passive and active recreation.

Transport

Main roads, local roads, traffic control, street furniture and bus shelters, street beautification, street lighting and other transport.

Waste and Environment Management

Drainage, sanitation, street cleaning, sewerage and other environment management.

2009 2009 2008 2008 2007 2007$ (%) $ (%) $ (%)

Note 40 Financial ratios (Performance indicators)

(a) Debt servicing ratio (to identify the capacity of Council to service its outstanding debt)

Debt servicing costs 195,158= 0.82%

136,808= 0.72%

107,214= 0.57%

Total revenue 23,718,960 18,936,917 18,766,870

Debt servicing costs refer to the payment of interest on loan borrowings, finance lease, and bank overdraft.

The ratio expresses the amount of interest paid as a percentage of Council’s total revenue.

(b) Debt commitment ratio (to identify Council’s debt redemption strategy)

Debt servicing & redemption costs 568,030= 5.05%

544,663= 5.39%

474,039= 5.13%

Rate revenue 11,251,994 10,107,586 9,233,999

The strategy involves the payment of loan principal and interest, finance lease principal and interest.

The ratio expresses the percentage of rate revenue utilised to pay interest and redeem debt principal.

(c) Revenue ratio (to identify Council’s dependence on non-rate income)

Rate revenue 11,251,994= 47.44%

10,107,586= 53.38%

9,233,999= 49.20%

Total revenue 23,718,960 18,936,917 18,766,870

The level of Council’s reliance on rate revenue is determined by assessing rate revenue as a proportion of the total revenue of Council.





















2009 2009 2008 2008 2007 2007$ (%) $ (%) $ (%)

Note 40 Financial ratios (Performance indicators) (cont.)

(d) Debt exposure ratio (to identify Council’s exposure to debt)

Total indebtedness 6,870,140= 10.56%

6,209,214= 9.54%

4,811,941= 10.27%

Total realisable assets 65,067,939 65,067,939 46,870,647

For the purposes of the calculation of financial ratios, realisable assets are those assets which can be sold and which are not subject to any restriction on realisation or use.

Any liability represented by a restricted asset (note 35) is excluded from total indebtedness.

The following assets are excluded from total assets when calculating Council’s realisable assets:

land and buildings on Crown land; restricted assets; heritage assets; total infrastructure assets; and Council’s investment in associate.

This ratio enables assessment of Council’s solvency and exposure to debt. Total indebtedness refers to the total liabilities of Council. Total liabilities are compared to total realisable assets which are all Council assets not subject to any restriction and are able to be realised. The ratio expresses the percentage of total liabilities for each dollar of realisable assets.

(e) Working capital ratio (to assess Council’s ability to meet current commitments)

Current assets 7,518,898= 199.29%

4,534,180= 110.71%

5,271,234= 149.59%

Current liabilities 3,772,804 4,095,653 3,523,794

The ratio expresses the level of current assets the Council has available to meet its current liabilities.

(f) Adjusted working capital ratio (to assess Council’s ability to meet current commitments)

Current assets 7,518,898= 231.18%

4,534,180= 126.01%

5,271,234= 176.17%

Current liabilities 3,252,369 3,598,385 2,992,168

The ratio expresses the level of current assets the Council has available to meet its current liabilities.

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

Note 41 Special committees and other activities

Special committees and other activities

Section 86 committee of management included in financial statements.

Clunes community housing committee

Section 86 committees of management not included in financial statements as they were not considered material.

Clunes museum committee

Creswick museum committee

Lyonville hall committee

Dean recreation reserve committee

Clunes historic medlyn complex committee

Clunes town hall committee

Glenlyon recreation reserve committee

Drummond hall committee

Lindsay park recreation reserve committee

Clunes community centre committee

Woolnoughs crossing reserve committee

Campbelltown school ground committee




















Certification of the Financial Report

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

Lucy Roffey CA

Principal Accounting Officer

Date :

Daylesford

In our opinion the accompanying financial statements present fairly the financial transactions of Hepburn Shire Council for the year ended 30 June 2009 and the financial position of the Council as at that date.

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

We have been authorised by the Council on 25 August 2009 to certify the financial statements in their final form.

Don Henderson

Councillor

Date :

Daylesford

Bill McClenaghan

Councillor

Date :

Daylesford

Kaylene Conrick

Chief Executive Officer

Date :

Daylesford


Standard Statements For the year ended 30 June 2009

Budget Actual

2008/2009 Variances 2008/2009$’000 $’000 % Ref $’000

Revenues from ordinary activities

Rates and charges 11,061 191 1.7% 11,252

User charges and other fines 1,080 337 31.2% 1 1,417

Contributions 13 397 100.0% 2 410

Grants - operating 4,686 1,565 33.4% 3 6,251

Grants - capital 1,392 1,826 131.2% 4 3,218

Other revenue 1,384 (212) -15.3% 5 1,172

Revenues from outside the operating activities

Transfer of land & buildings - 8,945 100.0% 6 8,945

Share of net profit of associates - 72 100.0% 7 72

TOTAL REVENUES 19,616 13,121 32,737

Expenses from ordinary activities

Employee benefits 7,799 356 4.6% 8,155

Materials and services 5,364 904 16.9% 8 6,268

Bad and doubtful debts 4 (4) -100.0% -

Depreciation 4,477 (40) -0.9% 4,437

Finance costs 204 (9) -4.4% 195

Other expenses 1,104 (292) -26.4% 9 812

Net loss on disposal of plant - 103 100.0% 10 103

TOTAL ExPENSES 18,952 1,018 19,970

Net surplus (deficit) from operations 664 12,103 12,767

Movements in equity

Net increase (decrease) in asset revaluation reserves - - -

Impairment losses on land held for sale - - -

TOTAL CHANGES IN EqUITy 664 12,103 12,767


Standard Statements of Financial PerformanceFor the year ended 30 June 2009

Variance Explanation ReportRef. Item Commentary

1 User Charges and Fines The increase is due to a substantial increase in the provision of contract care, building services, animal registration and a number of other services to a lesser extent.

2 Contributions Represents non monetary assets received that were not budgeted for. Land under roads $49K and road construction $328K .

3 Grants - operating This variance is due to the early payment of $568K part of the 2009/10 Grants Commission allocation, a $275K grant received for the construction of the Springs Medical Centre and a number of smaller grants relating to the bush fires that occurred in the area earlier this year.

4 Grants - capital The increased capital grants relate to the payment of the unbudgeted Federal Government Regional and Local Community Infrastructure Program and the early payment of the Doug Lindsay Development project.

5 Other revenue The shortfall is primarily as a result of lower than budgeted rent from the Hepburn Bathhouse which is partly based on turnover.

6 Transfer of Land & Buildings Hepburn Springs Bathhouse transferred back to Council.

7 Share of net profit of associates Council does not budget for a profit or loss for the Central Highlands Regional Library Service.

8 Materials & services The increased expenditure has resulted from payments made towards the Springs Medical Centre (see note 3), the bush fires and a number of smaller grants received during the year (see also note 9).

9 Other Expenses Included in the original budget for other expenses was $311K that was re-allocated to Materials & services. Consequently the actual variance is only $19k or 2.4%.

10 Net loss on disposal of plant Council does not budget for a profit or loss on the disposal of plant during the year as it is difficult to reliably estimate.


Budget Actual2008/2009 Variances 2008/2009

$’000 $’000 % Ref $’000Current assets

Cash assets 760 4,901 644.9% 11 5,661

Receivables 2,032 (293) -14.4% 12 1,739

Other 307 (188) -61.2% 13 119

TOTAL CURRENT ASSETS 3,099 4,420 7,519

Non-current assets

Receivables 5 (4) -80.0% 1

Financial assets 1,109 (210) -18.9% 14 899

Investments in associates 397 50 12.6% 15 447

Property, plant and equipment 143,408 17,198 12.0% 16 160,606

TOTAL NON-CURRENT ASSETS 144,919 17,034 161,953

TOTAL ASSETS 148,018 21,454 169,472

Current liabilities

Payables 1,354 340 25.1% 17 1,694

Interest bearing liabilities 336 83 24.7% 18 419

Provisions 1,262 398 31.5% 19 1,660

TOTAL CURRENT LIABILITIES 2,952 821 3,773

Non-current liabilities

Interest bearing liabilities 3,276 (83) -2.5% 3,193

Provisions 1,214 (478) -39.4% 19 736

TOTAL NON-CURRENT LIABILITIES 4,490 (561) 3,929

Total liabilities 7,442 260 7,702

Net assets 140,576 21,194 161,770

Equity

Accumulated surplus 83,392 12,919 15.5% 96,311

Asset revaluation reserve 56,190 8,414 15.0% 20 64,604

Other reserves 994 (139) -14.0% 21 855

TOTAL EqUITy 140,576 21,194 161,770

Standard Statements of Financial PositionFor the year ended 30 June 2009


Standard Statements of Financial PositionAs at 30 June 2009


11 Cash Assets Cash assets are substantially higher than forecast due to the prepayment of government grants a reduction in the level of debtors (see note12) and the delay in completing some of the projects in the capital works program.

12 Receivables The decrease in receivables is due to debtors being closely monitored and all major grant claims paid prior to 30 June 2009.

13 Other Lower than forecast because of a reduction in inventories and non current assets held for resale.

14 Financial Assets Investment reclassified as current

15 Investments in Associates Council does not budget for the movement in value for the Central Highlands Regional Library Service as it is difficult to estimate (see note 7).

16 Property Plant and Equipment Relates to the reappointment of the Council as committee of management of the Hepburn Springs Bathhouse and the revaluation of assets at 30 June 2008 (see note 20).

17 Payables Increase in the level of trade creditors at year end.

19 Interest Bearing Liabilities Due to the reduced level of interest rates the loan for the construction of the Council depot was taken out over 10 years and not 20 years increasing the amount of Principal due in 2009/10.

19 Provisions Relates to the split between current and non current assessment for long service leave overall the total provisions are comparable. The budget was compiled based on the standards that applied pre the introduction of the International Financial Reporting Standards (IFRS) which changed the methodology for calculating the allocation of long service leave between current and non current.

20 Asset Revaluation Reserve The budget did not reflect any changes to equity resulting from asset revaluations as their impacts were not considered predictable. When preparing the 2007/08 annual accounts an asset revaluation was required resulting in a higher asset valuation total. This was not known at the time of compiling the 2008/09 budget.

21 Other Reserves Decrease represents higher than anticipated transfer from the waste management reserve in 2007/08 financial year. This was not known at the time the of compiling to 2008/0-9 budget.



$’000 $’000 % Ref $’000Cash flows from operating activities

Rates 11,061 13 0.1% 11,074

User charges and other fines (inclusive of GST) 1,130 204 18.1% 22 1,334

Grants operating (inclusive of GST) 4,930 1,518 30.8% 23 6,448

Grants capital (inclusive of GST) 1,517 1,701 112.1% 24 3,218

Contributions (inclusive of GST) 14 23 164.3% 25 37

Interest 215 75 34.9% 26 290

Other receipts (inclusive of GST) 873 67 7.7% 940

Net GST refund 177 273 154.2% 27 450

Payments to suppliers (inclusive of GST) (5,901) (1,446) 24.5% 28 (7,347)

Payments to employees (including redundancies) (7,799) (415) 5.3% (8,214)

Other payments (872) (21) 2.4% (893)

Net cash inflow (outflow) from operating activities 5,345 1,992 7,337

Cash flows from investing activities

Proceeds from sale of property, plant and equipment 312 (75) -24.0% 29 237

Proceeds from investments - 6 100.0% 6

Repayment of loans and advances - 3 100.0% 3

Payments for property, plant and equipment (6,694) 889 -13.3% 30 (5,805)

Net cash inflow (outflow) from investing activities (6,382) 823 (5,559)

Cash flows from financing activities

Finance costs (204) 33 -16.2% 31 (171)

Deposits - (5) 100.0% (5)

Proceeds from borrowings 1,450 - 0.0% 1,450

Repayment of borrowings (373) - 0.0% (373)

Net cash inflow (outflow) from financing activities 873 28 901

Net increase (decrease) in cash held (164) 2,843 100.0% 2,679

Cash at the beginning of the year 924 2,058 222.7% 32 2,982

Cash at the end of the year 760 4,901 5,661

Reconciliation of Operating Result and Net Cash Flows from Operating Activities for the year ending 30 June 2009

Net surplus (deficit) from operations 664 12,103 12,767

Depreciation 4,477 (40) -0.9% 4,437

(Profit) Loss on sale of property, plant and equipment - 103 100.0% 10 103

Finance Costs 204 (33) -16.2% 31 171

Net movement in current assets and liabilities (10,141) 100.0% (10,141)

Net cash inflow (outflow) from operating activities 5,345 1,992 7,337

Standard Statements of Financial PositionFor the year ended 30 June 2009


Standard Statements of Cash FlowsFor the year ended 30 June 2009


22 User Charges & Other fines (inclusive of GST)

The increase is due to a substantial increase in the provision of contract care , building services, animal registration and a number of other services to a lesser extent.

23 Grants - operating (inclusive of GST) This variance is due to the early payment of part of the 2009/10 Grants Commission allocation, a grant received for the construction of the Springs Medical Centre and a number of smaller grants relating to the bush fires that occurred in the area earlier this year.

24 Grants - capital (inclusive of GST) The increased capital grants relate to the payment of the unbudgeted Federal Government stimulus package and the early payment of the Doug Lindsay Development project.

25 Contributions (inclusive of GST) Represents unbudgeted contributions from local groups towards projects undertaken by Council.

26 Interest Budgeted inflows from interest was exceeded due to higher level of cash and investment holdings through out the year.

27 Net GST refund Budgeted cash inflows from GST refund was exceeded due to higher than expected payments to suppliers made during the year.

28 Payments to suppliers (inclusive of GST)

The increased expenditure has resulted from payments made towards the Springs Medical Centre (see note 3), the bush fires and a number of smaller grants received during the year (see also note 9).

29 Proceeds from sale of property, plant and equipment

Fewer vehicles changed over than budgeted for due to previous years decision to extend Council's fleet vehicles change over policy.

30 Payments for property plant and equipment

Delay in completing some projects within the capital works program see specific notes to Capital section.

31 Finance costs Finance costs down due to lower than anticipated interest rates at time of negotiating the Depot loan taken out during the year.

32 Cash at beginning of year Better than budgeted cash position achieved than predicted when budget was prepared.



$’000 $’000 % Ref $’000Capital works Areas

Roads, Drainage, Footpath, Bridges 2,528 (159) -6.3% 2,369

Recreation 343 (116) -33.8% 33 227

Buildings 2,621 (339) -12.9% 34 2,282

Plant and equipment 1,182 (273) -23.1% 35 909

Other 20 (3) -15.0% 17

Total capital works 6,694 (890) 5,804

Represented by:

Renewal 3,445 (432) -12.5% 36 3,013

Expansion/upgrade 2,893 (343) -11.9% 37 2,550

New assets 356 (115) -32.3% 38 241

Total capital works 6,694 (890) 5,804

Standard Statements of Capital WorksFor the year ended 30 June 2009


Standard Statements of Capital Works For the year ended 30 June 2009


33 Recreation Delay in undertaking works on diving tower at Calembeen Lake

34 Buildings Delay in completing the construction of the Council depot and Rotunda at Collins Place Clunes

35 Plant & equipment Fewer vehicles changed over than budgeted for due to previous years decision to extend Council's fleet vehicles change over policy.

36 Renewal The replacement of some plant items which have been carried forward, replacement of the diving tower at Calembeen Lake, along with the delay in finalising the tender for the replacement of Gooch's bridge have resulted in this target not being met.

37 Expansion/upgrade The shortfall relates to the construction of the Council depot which was not completed on schedule in 2008/09 and will be completed in the 2009/10 financial year

38 New assets This variance is due to the deferral of the construction of the rotunda in Collins Place Clunes to coincide with works scheduled in 2009/10 in this reserve


Notes to Standard Statements

Hepburn Shire Council is required to prepare and include audited Standard Statements within its Annual Report.

These Statements and supporting notes form a special purpose financial report prepared to meet the requirements of the Local Government Act 1989 and the Local Government (Finance and Reporting) Regulations 2004.

The Standard Statements have been prepared on accounting bases consistent with those used for the General Purpose Financial Report and the Budget. The results reported in these Statements are consistent with those reported in the General Purpose Financial Report.

The Standard Statements are not a substitute for the General Purpose Financial Report, which is included in the Annual Report. They have not been prepared in accordance with all Australian Accounting Standards or other authoritative professional pronouncements. The Standard Statements compare Hepburn Shire Council's Strategic Resource Plan, expressed through its annual budget, with actual performance. The Local Government Act 1989 requires explanation of any material variances. Hepburn Shire Council has adopted a materiality threshold of greater than 10% per cent or more than $10,000. Explanations have not been provided for variations below the materiality threshold unless the variance is considered to be material because of its nature.

The budget figures included in the Standard Statements are those adopted by Hepburn Shire Council on 29 July 2008. The budget was based on assumptions that were relevant at the time of adoption of the budget. Hepburn Shire Council set guidelines and parameters for revenue and expense targets in this budget in order to meet Hepburn Shire Council's business plan and financial performance targets for both the short and long term. The budget did not reflect any changes to equity resulting from asset revaluations, as their impacts were not considered predictable.

Detailed information on the actual financial results are contained in the Annual Financial Report for the year ended 30 June 2009. The detailed budget for 2008/2009 can be obtained by contacting Hepburn Shire Council or through the Council's web site. The Standard Statements must be read with reference to these documents.


Statement by Councillors and Principal Accounting OfficerFor the year ended 30 June 2009

In my opinion the accompanying standard statements have been prepared on accounting bases consistent with the financial statements and in accordance with the Local Government Act 1989 and the Local Government (Finance and Reporting) Regulations 2004.

Lucy Roffey CA

Principal Accounting Officer

Date

In our opinion the accompanying standard statements have been prepared on accounting bases consistent with the financial statements and in accordance with the Local Government Act 1989 and the Local Government (Finance and Reporting) Regulations 2004.

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

We have been authorised by the Council on 25 August 2009 to certify the standard statements in their final form.

Don Henderson

Councillor

Date

Bill McClenaghan

Councillor

Date

Kaylene Conrick

Chief Executive Officer

Date


Independent Auditor’s Report

Council Office Locations

Customer Service Centres are open Monday to Friday between 8.30am and 5pm and are located at:

76 Vincent Street, Daylesford, Victoria 3460

Corner Duke & Albert Streets, Daylesford, Victoria 3460

68 Albert Street, Creswick, Victoria 3363

Postal Address

P.O. Box 21, Daylesford, Victoria, 3460

Phone: 03 5348 2306

Fax: 03 5348 2911

Email: [email protected]

Website: www.hepburnshire.com.au

Annual Financial Reports

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