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Gannawarra Shire Council – Ordinary Meeting Minutes

Ordinary Meeting Minutes

Community Meeting Room, Cohuna Wednesday 17 February, 2016 7.00pm

Gannawarra Shire Council

Ordinary Meeting Minutes

Wednesday 17 February, 2016

7.00pm

1. Opening Prayer 12348

2. Apologies 12348

3. Confirmation of Minutes 12348

4. Declaration of Pecuniary Interest 12348

5. Question Time 12348

6. Assembly of Councillors 12348

7. Business Reports for Decision 12349

7.1 Cohuna Civic Place Landscape Design ‐ Endorsement 12349

7.2 Wells Bridge Replacement Grant Funding 12351

7.3 Acknowledgement of Country Statement and Reconciliation Action Plan 12352

7.4 Road Condition Evaluation Report 2015 12353

7.5 Council Plan – Progress Report 12355

7.6 Canonsgate Avenue, Kerang – Formalisation as public highway 12356

7.7 Sir John Gorton Library Hours – Late Night Opening 12356

7.8 Quarterly Financial Report – December 2015 12357

7.9 Audit Committee Report – February 2016 12357

7.10 Community Care Schedule of Fees and Charges 2016/17 12359

7.11 Local Government Act (Improved Governance) 12360

7.12 Local Government: 2014‐15 Audit Snapshot ‐ Recommendations 12361

8. Information Reports 12362

9. Urgent Items 12362

10. Notices of Motion 12362

11. Delegates Reports 12363

12. In‐Committee Items 12365

12.1 Waste and Recycling Collection Service CP212 12365

1 Opening Prayer

Cr Arians read the Opening Prayer.

Present: Cr Lorraine Learmonth (Yarran Ward), Cr Neville Goulding (Yarran Ward), Cr Mark Arians (Patchell Ward), Cr Oscar Aertssen (Murray Ward), Cr Neil Gannon (Avoca Ward) , Cr Keith den Houting (Patchell Ward), Cr Brian Gibson (Patchell Ward), Eric Braslis – Chief Executive Officer, Chris White – Director Strategic Development, Mandy Hutchinson – Director Community Wellbeing, Geoff Rollinson – Director Infrastructure Services, Marg Allan – Acting Director Corporate Services and Lisa Clue – Manager Governance.

Gallery: 5 Media: 1.

2 Apologies

Nil.

3 Confirmation of Minutes

MOVED: CR AERTSSEN SECONDED: CR ARIANS

That Council:

1. Adopt the minutes from the Ordinary Council Meeting and In‐Committee Meeting held on 20 January 2016.

CARRIED

4 Declaration of Conflict of Interest

No conflicts of interest were declared.

5 Question Time

There were no questions from members of the public.

6 Assembly of Councillors

Context

In accordance with Section 76A of the Local Government Act 1989 the definition of an Assembly of Councillors is:

A meeting at which matters are considered that are intended or likely to be the subject of a Council decision or the following exercise of a delegated authority and which is either of the following:

1. A planned or scheduled meeting that includes half the Councillors and at least one Officer, or

2. A meeting of an advisory committee where at least one Councillor is present.

3. If a meeting fits either of these types the procedures applying to an Assembly of Councillors must be complied with, irrespective of any name or description given to the committee or meeting. Not all gatherings or meetings at which Councillors are present will constitute Assembly of Councillors.

Gannawarra Shire Council - Ordinary Council Meeting Minutes 17 February 2016

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The requirement for reporting provides increased transparency and the opportunity for Councillors to check the record, particularly the declaration of Conflict of Interest.

MOVED: CR GANNON SECONDED: CR DEN HOUTING

That Council:

1. Notes the record of Assemblies of Councillors as outlined in this report.

CARRIED

7.1 Cohuna Civic Place Landscape Design ‐ Endorsement

Context Following the adoption of the Cohuna Future Vision Plan by Council in 2015, consultants Liesl Malan (Liesl Malan Landscape Architects) and Sally Hirst (Hirst Projects) have been engaged to produce detailed landscape designs for the staged development of the proposed Civic Place to the front of the Council Offices in Cohuna.

The purpose of the landscape design proposals is to inform a work program which will result in the creation of a civic space/park which will perform a variety of functions, including the creation of a fitting setting for memorials to those local people who made the ultimate sacrifice in the service of their country.

The proposal for the civic space identifies a staged approach to development – which can be implemented in light of community aspirations and funding availability. Key design elements identified in the Plan include the following:

Stage 1:

Surfaced plaza area to accommodate WW1 memorial, flagpole and grassed edging.

Two quiet seating areas to provide an opportunity for rest and reflection.

All existing trees retained during this stage.

Stage 2:

Memorial Walk incorporating planting and sculptural elements, to provide a setting for future memorials (all to be subject to detailed design).

Existing Melaleuca trees replaced with new trees to complement the Memorial Walk.

Stage 3:

New surfacing to forecourt of Memorial Hall and area around toilets.

External façade treatment to toilet building to enhance legibility, improve presentation and clearly differentiate it from the hall building.

Stage 4 (Option A):

Proposed design incorporates provision for new Art Gallery (dependent upon feasibility and funding).

Central path to library.

Significant access improvement to existing Library and Council Offices by raising verandah floor level and constructing new ramps to meet Universal Access requirements.

New landscape elements to improve presentation of south west site entry.



Stage 4 (Option B):

Proposed design does not incorporate provision for new Art Gallery, and instead promotes a newly landscaped area to adjoin the memorial plaza.

Central path to Library.

Significant access improvement to existing Library and Council Offices by raising verandah floor level and constructing new ramps to meet Universal Access requirements.

New landscape elements to improve presentation of south west site entry.

Stage 5:

Proposed street tree planting to provide additional shade for large events and gatherings, such as ANZAC Day Services which extend into Market and King Edward Streets.

Proposed tree planting in King Edward Street would significantly improve the microclimate of this area by providing shade on the northern side of the site in summer.

These proposals will be of direct assistance to Council as it identifies specific opportunities and priorities for investment in the civic precinct. It provides both Council and the local community with a coherent framework for future project development at this site.

SUSPENSION OF STANDING ORDERS

That Standing Orders be suspended to allow general discussion with Cohuna RSL members.

MOVED: CR GANNON SECONDED: CR AERTSSEN

1. That Standing Orders be suspended to allow general discussion with Cohuna RSL members.

CARRIED

Councillor discussion with Cohuna RSL members.

RESUMPTION OF STANDING ORDERS

That Standing Orders be resumed.

MOVED: CR GOULDING SECONDED: CR GANNON

1. That Standing Orders be resumed.

CARRIED



MOVED: CR GOULDING SECONDED: CR DEN HOUTING

That Council:

1. Endorse the developed landscape proposals for the proposed Cohuna civic place, andproceed with the Stage One works.

2. Display the plans for the staged development of the civic place and work to identifyfuture funding opportunities to implement future stages.

CARRIED

7.2 Wells Bridge Replacement Grant Funding

Context Council has been successful under the Australian Governments Department of Infrastructure and Regional Development Bridges Renewal Programme Round 2 for the replacement of Wells Bridge in Benjeroop.

The replacement bridge will be built to withstand higher mass limits (SM1600). This will result in a strategic intrastate and interstate transport link, opening up at least 27 km of direct route access for higher mass vehicles.

As the only bridge in the area, if the bridge is closed, vehicles must detour approximately one hour via Kerang (around 74 km) to cross the Loddon River which adds significant costs and reduces the competitiveness of the region’s businesses.

The new bridge will be designed to withstand freight loads that would be anticipated for the full design life of the bridge being 80 to 100 years.

The $1,676,000 bridge will replace the current single lane timber and steel structure with a two‐lane concrete bridge. The funding under the Bridges Renewal Program is offered on a 1:1 basis. As such, Council is required to contribute $838,000 cash towards the bridge replacement.

MOVED: CR GIBSON SECONDED: CR GANNON

That Council:

1. Refer a contribution of $838,000 towards the reconstruction of Wells Bridge inBenjeroop to the 2016/17 Capital Works program.

CARRIED



7.3 Acknowledgement of Country Statement and Reconciliation Action Plan

Context This report provides an option to adopt an Acknowledgement of Country Statement for Council and community members to refer to and use at Gannawarra Shire Council events, official meetings, functions and other special occasions. Further this report supports Council Officers to continue to work on a Reconciliation Action Plan in partnership with interested Councillors and the Kerang Elders Group.

1. Acknowledgement of Country – the attached statement articulates how and when to do an ‘Acknowledgement of country’. For example the first speaker, the Chair or a Council Officer would give the Acknowledgment of Country in the following way:

‘I would like to take this time to Acknowledge the Traditional Custodians of the land, and pay my respect to elders both past and present’,

It is not necessary for subsequent speakers to give an Acknowledgement.

Please see attached draft Acknowledgement of Country statement.

2. Reconciliation Action Plan (RAP) – this broad comprehensive plan reflects the current relationship with the local Aboriginal community, and set actions under the three platforms of relationships, respect and opportunities. The RAP would cover a variety of topics from cultural education to flag raising.

MOVED: CR ARIANS SECONDED: CR GIBSON

That Council:

1. Adopt the Acknowledgement of Country Statement. 2. Officers continue to develop a Reconciliation Action Plan and present this back to

Council when a draft is ready for consideration.

Amendment to the Motion:

MOVED: CR GOULDING SECONDED: CR DEN HOUTING

That Council:

1. Adopt the Acknowledgement of Country Statement with the addition of the words ‘and pioneers’ at the end of the statement.

2. Officers continue to develop a Reconciliation Action Plan and present this back to Council when a draft is ready for consideration.

LOST

Councillors requested the Mayor put the motion in two separate parts.

The Mayor put the motion to the vote in separate parts.



That Council: 1. Adopt the Acknowledgement of Country Statement.

A division was called.

Voting For the Motion Voting Against the Motion

Cr Arians, Cr Gibson, Cr Aertssen, Cr Gannon, Cr Learmonth

Cr den Houting and Cr Goulding

CARRIED

2. Officers continue to develop a Reconciliation Action Plan and present this back to Council when a draft is ready for consideration.

A division was called.

Voting For the Motion Voting Against the Motion

Cr Arians, Cr Gibson, Cr Aertssen, Cr Gannon, Cr Learmonth and Cr den Houting

Cr Goulding

CARRIED

7.4 Road Condition Evaluation Report 2015 ‐ Update

Context Council maintains an extensive road and footpath network across the municipality. These assets require continual maintenance and renewal works to ensure they provide for the community at the required level of service. To ensure this can occur over the longer term for the minimum of capital input, programmed works must be made from informed management practices and a detailed knowledge of the network.

Moloney Asset Management Systems (MAMS) was engaged to conduct a condition inspection of all Council’s road and footpath network being:

Asset Class Quantity

Footpaths 78km

Kerb 148.4km

Sealed Pavement 531.2km

Sealed Surface 531.2km

Unsealed Pavement 963.9km

The prime purpose of a condition assessment survey is to develop a targeted works program to manage these assets efficiently. As MAMS has conducted a number of inspection over a very long period other information can be obtain that increases the accuracy of future modelling to predict the future pattern of asset degradation and renewal demands based ie. Long term capital works budgets.

The major finding of the report were:

1. Gannawarra Shire has managed its road assets well since the last condition survey in 2003 with a strong condition improvement in all road classes other than the reseals and kerbs.



2. The total present renewal shortfall or backlog in over intervention assets for the whole roads group is estimated at $4,548,733 representing 2.77% of the total road asset valuation. This is considered to be a reasonable figure by industry standards with the upper limit of the acceptable range considered to be around 3.50%.

3. The planned total renewal expenditure level of $2,323,000 pa is considered to be at an appropriate level for the next 10‐years, but there may need to be some redistribution between the asset classes.

4. Gannawarra is one of only a hand full of councils that MAMS have analysed in recent years where the planned average renewal expenditure over the next 10‐years is considered to be at an appropriate total level.

5. The sealed road pavement assets were found to be in very good overall condition and had experienced a modest overall improvement in condition since the time of the last survey in 2003. This is considered to be an outstanding achievement and reflects very sound management practices on these very important assets.

6. The sealed surface assets (reseals) were found to be in poor overall condition and had declined in condition quite measurably since the last survey in 2003. These are really important assets and should always be fully funded as the top roads group funding priority, as failure to do so will result in a diminished pavement life and hence higher ongoing overall cost to maintain.

7. The Unsealed road pavement assets were found to be in very good to excellent condition and had improved in condition quite measurably since the last survey in 1997. This result is attributed to the flood recovery works.

8. The Kerb assets were found to be in very poor overall condition and had declined in condition quite measurably since the last survey in 2003.

9. The footpath assets were found to be in fair overall condition and had experienced a quite dramatic condition improvement since the last survey in 2003.

10. The recommended funding strategy coming out of the modelling work within this report should be seen as delivering a total renewal expenditure profile for the whole of the road network. There must be some flexibility for how the total is distributed annually between the sub asset classes. But it is felt that the reseal program should be fully funded as recommended and there is also a strong case for higher than minimum levels of funding within the Footpath area for at least the first 3 ‐ 5 years. This may mean that other areas are funded at lower levels than the recommended minimum for the first 5‐years.

Overall the report recommends holding the current level of funding (subject to CPI increases) at around the current level for the next 3‐5 years and only adjust distribution of funding between asset classes to correct an imbalance in the sealed surface and kerb conditions over the longer term.

Asset Class Current Capital

Expenditure Recommended

Capital Expenditure

Sealed Pavements $550,000 $516,000

Sealed Surfaces $832,000 $985,000

Unsealed Pavements $728,000 $604,000

Kerbs $100,000 $140,000

Footpaths $113,000* $80,000

Totals $2,323,000 $2,355,000 * includes a portion of operating expenditure for modelling purposes due to the way footpaths are maintained/managed.



It is important to note that in 2010 Council redirected a full year of Reseal funding to the expanded footpath network. While as the report notes there is now an improvement in the overall footpath condition it is now showing a general decline in the condition of the Sealed Surfaces that can be linked to this event. The reasoning at the time was the Sealed Surfaces were in good condition and could wait, however this obviously wasn’t the case due to the way assets decline in particular how spray seals oxidises and deteriorates. As a consequence it is now necessary to increase the funding to this asset class to prevent major failures in the sealed pavements which cost upwards of ten times that of spray seal costs.

Given the report finding it is imperative that Council continue to fully fund these important assets at the recommended levels to ensure they perform as required for our community and future generations.

MOVED: CR GIBSON SECONDED: CR AERTSSEN

That Council:

1. Receive the MAMS Road Asset Survey Report, August 2015.

CARRIED

7.5 Council Plan – Progress Report

Context This half yearly report outlines progress towards the outcomes listed in the Council Plan from July 1 to December 31, 2015.

The Council Plan 2013‐2017 incorporates the Municipal Health and Wellbeing Plan and sets out the strategic priorities for Council. The priority areas within this Council Plan: strong and diverse economy, sustainable environments, healthy liveable communities and effective management and leadership, respond positively to the community’s vision for the future as documented within the 15 year strategic plan Gannawarra 2025 – Taking up the challenge.

Council has completed a number of projects in the past six months which meet the priorities listed in the Council Plan. Many other important projects and activities are in progress. Key achievements for the past six months include:

Attendance at the Regional Victoria Living Expo

Kerang Exercise Pool received a facelift

Gannawarra Youth Council attended Youth Parliament

Solar Trackers were installed at the Sir John Gorton Library precinct

Strong land sales in both the Cohuna and Kerang Industrial Estates

NBN works completed in Cohuna

Lighting the Regions Program completed

Greenwaste Service was implemented after a 12 month trial

Successful railing ahead partnership.

MOVED: CR AERTSSEN SECONDED: CR GIBSON

That Council:

1. Acknowledge the progress made between July 1, 2015 and December 31, 2015 in relation to the Council Plan actions and objectives.

CARRIED



7.6 Canonsgate Avenue, Kerang – Formalisation as public highway

Context Canonsgate Avenue runs in an easterly direction off Boundary Street Kerang and is sealed to where it meets freehold land owned by Council (Refer to attached map). Canonsgate Avenue is on Council’s road register and turns in a northerly direction. The unsealed section is maintained by Council as a gravel road and provides access to two properties as well as the Lower Murray Water Pump Station No.1 at the far end.

Formalisation of the entire roadway would require the subdivision of approximately 20 metres off the freehold land owned by Council and the process undertaken to proclaim the section of the road as a public highway in accordance with Sec. 204 of the Local Government Act 1989. The benefit to Council to subdivide the land to create a road reserve would be that should Council wish to sell the freehold land in the future, the subdivision would be required prior to a sale proceeding.

MOVED: CR DEN HOUTING SECONDED: CR GANNON

That Council:

1. Have the land surveyed and proceed to lodge a plan of subdivision to create the road reserve.

2. Prepare a notice proclaiming a public highway in the Government Gazette.

CARRIED

7.7 Sir John Gorton Library Hours – Late Night Opening

Context As part of a review of the opening hours at the Sir John Gorton Library, patrons and the wider community were surveyed about their preferred evening for late night opening.


That Council:

1. Continue to keep Friday as the allocated late night opening for the Sir John Gorton Library.

CARRIED



7.8 Quarterly Financial Report ‐ December 2015

Context Council undertakes a review of the current year budget as at 30 September, 31 December and 31 March each year to ensure that the forecast results as at 30 June are achievable. To keep Council better informed the current year budget is reviewed on a quarterly basis. The review takes the format of previous quarterly reports with an emphasis being placed on permanent budget adjustments.

Budgets and forecasts are required to be regularly reviewed to ensure that the basis for the estimate is reasonable and takes into account all variables. This review has been comprehensive and will assist staff in the preparation of the forthcoming budget. Every effort is made to continually improve the degree of precision in estimating the scheduling of work and the timing of activities. This is straightforward in some areas and not in others, hence a degree of uncertainty will always be present both in scheduled works and activities and in emergency or unplanned activities.

The table below highlights the key changes identified as a result of the comprehensive quarterly budget review between the 2015‐2016 Budget as adopted and the revised operating result:

Adopted Budget Adjustments Revised Budget

$’000 $’000 $’000

Operating Income 26,156 (2,330) 23,826

Operating Expenditure (24,591) 32 (24,559)

Surplus/(deficit) for the year 1,566 (2,299) (733)

An analysis of Capital works has been included in the detailed report for information purposes.

MOVED: CR DEN HOUTING SECONDED: CR GIBSON

That Council:

1. Note that the December Quarterly Financial report was presented and accepted by the Internal Audit Committee at its February 2016 meeting.

2. Receive the report outlining the 2015/2016 quarterly budget review as at 31 December 2015 and note the revised forecast operation results.

CARRIED

7.9 Audit Committee Report – February 2016

Context In accordance with Section 139 of the Local Government Act 1989, Council has established an Audit Committee as an Advisory Committee of Council. The Audit Committee Charter documents the requirement for the Director Corporate Services to provide a report of each Audit Committee meeting to the next ordinary meeting of the Council.


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A meeting of the Audit Committee was held on 2 February 2016, attended by the following members:

Deanne Van der Drift (Chairperson)

Alan Darbyshire (Independent Member)

Cr Keith den Houting

Cr Brian Gibson

Eric Braslis (Chief Executive Officer)

Sid Hutchinson (Manager Finance)

Lisa Clue (Manager of Governance)

Georgene Bryant (Administration Officer, Corporate Services)

Apologies: Brad Ead from (AFS & Associates Pty Ltd), Lui Basile (Independent Member)

The following items were considered by the Committee at the November meeting:

Report Discussion Recommendation/outcome

Aquatic Facilities Review

A draft report from AFS has been received and is currently being circulated. Comments from management will then be provided for comment from AFS.

Report to be presented to April Internal Audit Committee Meeting.

Quarterly Budget Review

Revised operating result was explained outlining material changes in revenue, expenditure and capital projects.

Recommended that the report be received and that the revised forecast be noted. (Report presented to February Council Meeting).

Follow up of Previous Audit Recommendations

The register for previous audit recommendations was presented to the Committee and discussed.

No outstanding items were removed.

The remaining items on the register were reviewed, discussed and held over.

Budget Deficit/Surplus Mitigation of Risk was added seeking a procedure for approval for amounts outside of budget and capital grants.

MOVED: CR AERTSSEN SECONDED: CR DEN HOUTING

That Council:

1. Note the recommendations/outcomes of the Audit Committee meeting held on Tuesday 2 February 2016.

CARRIED



7.10 Community Care Schedule of Fees and Charges 2016/17.

Context On 1 July 2016 Home and Community Care services will transition to the Commonwealth Home Support Program (CHSP). The Commonwealth has provided Council with the draft CHSP Client Contribution Framework outlining the recommended service fees for people over 65 years. It is anticipated that all service providers will endorse the Client Contribution Framework before 1 July 2019. Outlined below is a summary of the existing fees in comparison to the CHSP recommended fees:

Service Home and

Community Care Fees

CHSP Client Contribution Framework – full

pensioner

CHSP Client Contribution Framework – part

pensioner

Domestic Care $6.05 $10.00 $15.00

Personal Care $4.65 $10.00 $12.00

Respite Care $3.20 $11.00 $12.00

Property Maintenance $12.25 $12.00 $17.50

Delivered Meals – 3 Course $7.70 $9.00 $10.00

Client Scenario: Mrs Smith currently receives 1.5 hours home care per fortnight and 0.5 hour personal care 3 days per week. Mrs Smith’s monthly account totals $46.05. If CHSP Client Contribution Framework is adopted Mrs Smith’s monthly account will total $90.00. This means Mrs Smith will be paying an extra $527.40 per year for her current level of service.

Council Scenario: Community Care provided service to 708 separate individuals over the 14/15 financial year. Annual total of service provision charges for 14/15 were $187,781. Under the CHSP Client Contribution Framework the annual total of service provision charges for 708 separate individuals would have been $276,042.

Fees are discussed with clients at assessment and reviews. The CHSP has retained the financial hardship clause for clients that are on very low income.

Currently Community Care Services operate at a small cost to Council of approximately $70,000 per year. This includes all business clients, staff wages and client service provision. Working towards adoption of the draft CHSP Client Contribution Framework will ensure Community Care Services will continue operation from 1 July 2016 at minimal expense to council. With continued future planning and management of target hours Community Care will endeavour to be at no cost to council at the conclusion of the transition in 2019. The 16/17 budget has been amended to reflect the adoption of the CHSP Client Contribution Framework.

MOVED: CR AERTSSEN SECONDED: CR GANNON

That Council:

1. Adopt the final CHSP Client Contribution Framework into the Council Schedule of Fees and Charges 2016/17 effective from 1 July 2016.

2. Provide 90 days notice to all clients regarding the adoption of the CHSP Client Contribution Framework and the impact on their fees.

CARRIED



7.11 Local Government Act (Improved Governance)

Context In response to a number of issues within the sector, in October 2015 the State Government adopted a number of changes to the Local Government Act, as a mean to improve the overall governance in relation to the manner in which local government Councillors operate. The reforms significantly strengthen governance arrangements for the sector and will reinforce the intercity of the 2016 Council general elections. A number of provisions have been proclaimed;

Banning of Councillor Discretionary Funds

Requirement for Councils to have in place an Election Period Policy

Definitions of the Roles of Councillors and the Functions of the Mayor and CEO’s

It is envisioned that the remaining provisions will be proclaimed in March / April 2016.

The changes are fully detailed in the attached document – Reforms arising from the Local Government Amendment (Improved Governance) Act 2015 – A Guide for Council. However, in summary, the changes include;

Councillors will be required to sign up to Codes of Conduct

Councils will need to have procedures in place to deal with alleged braches of these codes

Allegations of misconduct and serious misconduct will be dealt with by independent Councillor Conduct Panels, which will have the power to suspend Councillors for up to 6 months

The Minister for Local Government receives new powers, including the option to recommend to the Governor in Council, that a Councillor be stood down from their role as Councillor if:

o The Councillor has been accused of serious or gross misconduct and a panel or VCAT hearing is pending

o The Councillor’s behaviour represents a threat to health and safety, is prevent Council from performing its functions or is inconsistent with the role of Councillor; and

o A municipal monitor recommends the Minister stand the Council down.

The Minister is empowered to appoint municipal monitors who can recommend that the Minister issue governance directions to Councils

Discretionary / Ward funds is prohibited


That Council:

1. Note the changes to the Local Government Act 1989 and that Councillors familiarise themselves with the changes as detailed in the Reforms arising from the Local Government Amendment (Improved Governance) Act 2015 – A Guide for Council.

2. Include this Guide in the New Councillors induction package.

CARRIED



7.12 Local Government: 2014‐15 Audit Snapshot – Recommendations

Context This report comments on the outcomes of the 2014–15 financial report and performance statement audits of the local government sector. The Audit shows that the local government sector generated a net surplus of more than $900 million annually in the past five financial years and has low financial sustainability risks. However, some local councils continue to face the ongoing challenge of maintaining spending on capital works and existing assets at sufficient levels.

This was the first year that local councils were required to prepare performance statements in accordance with the Local Government Performance Reporting Framework as set out by the Local Government (Planning and Reporting) Regulations 2014. It is a significant deficiency of the new performance reporting framework that targets are not included in performance statements for performance indicators.

This audit also highlights that improvements can be made to how local councils account for, monitor and report on development contributions for local infrastructure. Local councils can also strengthen how they identify and manage risks associated with development contributions for local infrastructure.

This report comments on the outcomes of the 2014–15 financial report and performance statement audits of the local government sector. The sector generated a net surplus of more than $900 million annually in each of the past five financial years. The sector's net surplus was $1.5 billion in 2014–15 ($923.6 million in 2013–14). The increase was partly driven by the advance payments of $269.8 million of Commonwealth grants in 2014–15.

The changed timing for financial assistance grants in 2014–15 also impacted several short‐term financial sustainability risk indicator results, leading to a more favourable outcome for the sector. Generally, local councils received a low financial sustainability risk assessment. Despite this, some local councils continue to face the ongoing challenge of maintaining spending on capital works and existing assets at sufficient levels.

A new performance reporting regime was introduced for the first time this year. However, there are still areas for improvement and challenges to overcome. Local councils face the challenge of meeting higher costs associated with the maintenance and management of infrastructure assets over time yet not all local councils that received development contributions for local infrastructure had all the key elements of an effective development contribution management framework in place. Improvements can be made to strengthen the framework around risk identification and management, monitoring and reporting.

Local Government Victoria seeks feedback from the sector on local council views on the effectiveness of the Local Government Model Financial Report and their suggestions for improvement ahead of the 2015–16 financial year.

Audit recommendations

That Local Councils: Implement appropriate governance and monitoring mechanisms to ensure audit findings are

addressed by management on a timely basis

Actively manage and monitor their rate of capital and renewal spending to at least meet the consumption of their assets

Annually review their landfill sites for remediation and aftercare costs and recognise a liability in accordance with the accounting standards

Enhance their performance reporting processes by developing performance statement preparation plans and setting performance indicator targets.

Acquit each development contribution plan by reporting publicly on the development contributions received/unspent and remaining infrastructure required

Include risks associated with development contributions and infrastructure asset delivery in councils' risk register—these risks need to be actively assessed and managed

Prepare a cash flow forecast of at least five years to better manage financial impacts of development contributions

Conduct an internal audit review of development contributions on a periodic basis.



That Local Government Victoria:

Seeks feedback from the sector on local council views on the effectiveness of the Local Government Model Financial Report and their suggestions for improvements ahead of the 2015‐16 financial year.

Refines and updates the definitions in the Local Government Better Practice Guide 2014– 2015: Performance Reporting Framework Indicator Workbook to demonstrate a clearer linkage between the performance objective and the result.


That Council:

1. Note the Auditor General’s Local Government 2014‐15 Audit Snapshot Recommendations.

CARRIED

8 Information Reports

Nil

9 Urgent Items Nil

10 Notices of Motion Nil



11 Delegates Reports

Cr Lorraine Learmonth

21 January 3SH interview, Australia Day announcements and presentations 23 January Gateway Volunteer 24 January Open Quambatook Heritage Machinery Harvest Day 25 January ABC Interview, Dinner with Australia Day Ambassadors in Koondrook 26 January Australia Day Ceremony Cohuna and Leitchville, Cohuna Women’s

Australia Day Lunch 28 January CEO Performance Review 30 January Small Transformation Project Meeting 1 February ABC Interview 2 February CEO Meeting, interview with Gannawarra Times, Council Budget

Meeting 3 February Regional Partnership Stakeholders Forum in Mildura, Leitchville

Progress Association Meeting 4 February RDV Presentation in Swan Hill, farewell dinner for Rob Jardine 5 February CLLM 2016 Launch Newbridge 8 February ABC interview, Loddon Campaspe Councils meeting in Bendigo,

MAV Regional Strategic Planning meeting in Bendigo 9 February Council Briefing, Koondrook Development Association meeting 10 February Open Loddon Valley CWA conference in Kerang, meeting regarding

Rule Changes Gunbower Creek, Elders Meeting in Kerang, Early Years Board meeting in Kerang 11 February Seniors Advisory Group meeting in Kerang 15 February Big Dry meeting in Kerang, Cohuna Progress Association Meeting 16 February Council Budget meeting in Kerang

Cr Neville Goulding

21 January Water Forum Tatura, Australia Day Civic Reception in Koondrook 24 January Volunteer at Gateway Centre, Cohuna 26 January Picked up Ambassador at Koondrook and took him to Lalbert for Australia Day Breakfast 28 January Council Discussion, Kerang 2 February Budget Discussion 3 February Meeting with Scientist working in Gunbower Forest, Leitchville Progress Association Meeting 4 February Farwell dinner for Rob Jardine 5 February Loddon Murray Waste and Resource Recovery Board Meeting, Bendigo 9 February Council Briefing 15 February Cohuna Progress Association Meeting 16 February Budget Discussion 17 February Council Meeting



Cr Neil Gannon

20 January Council Meeting, Kerang

22 January Quambatook Vintage Tractors

26 January Mystic Park Australia Day

28 January Budget meeting in Kerang

8 February Lalbert Progress Meeting

9 February Council Briefing, Kerang

Cr Keith den Houting

21 January Australia Day award winners announcement function in Kerang

25 January Australia Day ambassadors dinner in Koondrook 26 January Australia Day celebration at Leitchville. 28 January Budget meeting in Kerang 2 February Audit committee meeting in Kerang, budget meeting in Kerang 9 February Council Briefing, Kerang 16 February Budget meeting, Kerang

17 February Ordinary Council Meeting, Cohuna

Cr Oscar Aertssen

6 January Murrabit special projects committee meeting 21 January Australia Day awards civic reception, Kerang 25 January Australia Day ambassador dinner in Koondrook 26 January Australia Day breakfast in Barham 27 January Meeting with Koondrook Swimming Pool Committee 31 January Meeting with Koondrook Recreation Reserve Chair regarding funding application 4 February Meeting with council youth officer regarding Youth Council 8 February MMLLEN meeting in Swan Hill 11 February Meeting with Koondrook Historical Society Secretary regarding funding opportunities 17 February Meeting with Youth Council mayor regarding Youth Council 2016

Cr Brian Gibson

No report presented

Cr Mark Arians

20 January Council Meeting

21 January Australia Day Civic Ceremony

25 January Australia Day – Murrabit

27 January Kerang Progress Association

1 February Kerang Ag Society – Show and Shine Meeting

4 February Kerang Rotary Clue

9 February Council Briefing

10 February Tree Tops Committee Meeting

16 February Kerang Vintage Car Club

17 February Council Meeting



12 In Committee Items

MOVED: CR GIBSON SECONDED: CR ARIANS

That the following item be considered in Closed Council as it deals with a contractual matter specified in Section 89 (2)(d) of the Local Government Act 1989:

12.1 Waste and Recycling Collection Service CP212

CARRIED

MOVED: CR AERTSSEN SECONDED: CR DEN HOUTING

That Open Council resume.

CARRIED

Meeting Closed at 8.02 pm Confirmed this Sixteenth Day of March, 2016

_____________________________________________________ Cr Lorraine Learmonth ‐ Mayor



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