hepburn shire annual report 2 0 0 3 · cameron ward phil millar creswick ward max o’shea holcombe...

Working for our Community

Hepburn Shire Annual Report 2 0 0 3

Hepburn Shire Annual Report 2003 1

C o n t e n t s

Mayor’s Introduction 2

Chief Executive Officer’s Report 2

Council – Organisation Chart 3

Senior Officers of Council 3

Performance Overview for 2001/2002 4

Local Government Indicators 5

Equal Employment Opportunity Compliance 6

Privacy Policy 6

Whistleblowers Protection Act 2001 6

Council’s Best Value Program 7

Report on Service Reviews 8

Local Government Improvement Incentive Program Statement 2002 - 2003 14

Plain English Guide to Council’s Financial Report 15

2002/2003 Community Grants 16

Membership of Organisations 17

Information Available for Public Inspection 17

Financial Report 18

Performance Statement 46

Council’s Professional Service Providers 48

Local laws 48

Range of S e rv i c e sP r ov i d e d• Building

• Compliance/Local Laws

• Council Asset Management

• Drainage

• Emergency Management Planning Response

and Recovery

• Environmental Health

• Footpaths

• General Operations

• Home Care

• Household Garbage Collection

• Landcare

• Library Services

• Litter Collection

• Maternal and Child Health Centres

• Meals on Wheels

• Parks and Reserves

• Planning and Maintenance

• Recyclables Collection

• Roads and Drains

• Street Sweeping

• Swimming Pools

• Tip Operations

• Town Planning

• Traffic Management

Trentham

M a y o r ’s I n t r o d u c t i o n

Hepburn Shire has continued to move forward in 2002-2003.

It has been able to move forward because of the careful financial baseestablished by the Councillors over the last 6 years.Crs.Max O’Shea,Bob Orr,Laurice Newman,David Drummond and David Smith,with the administrativeleadership of the Chief Executive Officer, Victor Szwed,tackled the financialand administrative mess inherited with the merger of the 3.5 shires usingcommon sense,prudential wisdom and careful infrastructure commitment.This Shire is very grateful to each of them for their management.

The Shire,under the new Council of Crs.Michael Cheshire,Phil Millar, HeatherMutimer, Max O’Shea and myself,reflects a change in pace,style andsubstance.Issues of social planning,environmental care,art and culturalpromotion,public consultation and community empowerment are moved tothe main stage.

And it is in the area of Community Empowerment that this Shire rests itsfuture. We must endeavour to involve all our residents in not only setting theagendas of action but also delivering the outcomes.Each of our villages andtowns must reflect the desires of its community, the sense of place,thereality of belonging. These are nice concepts but they have to becomerealities over the next few years.

If we succeed in this endeavour, we will have assisted each of our friends andneighbours to attain a quality of life that everyone strives for – a quality ofbeing able to determine one’s own future.

Local government is the closest government to the people. We want the localgovernment of Hepburn Shire to also be the most relevant government for allour communities.

Councillor Warren MaloneyMayor 2003-2004

Chief Executive Officer’sR e p o r t

The Hepburn Shire Council has seen massive changes over the past 12months.In March 2003 Council saw a significant change in the compositionof the elected Council.The people of Hepburn Shire should note withappreciation the financial diligence applied by the outgoing Council and thedefeated Councillors being Bob Orr, David Smith,Lau Newman and DavidDummond.It is especially sad to note the passing of David Drummond sincethat election.He has served local government in the Trentham community forseveral decades and his life has touched many.

In June 2003 Council adopted a Council Plan 2003-2006 that sets the scenefor the next three years.The Council plan has the following five objectives:Communication, Partnerships & Diversity; Natural & Built Environments;Financial and Staff Management; Servicing the Community and EconomicDevelopment.

Via its Council Plan,the newly elected Council has set about mapping a newstrategic direction,one that will see the Hepburn Shire pioneer somecommunity participatory concepts.Council has embarked on a path ofconsultation and community development with the intention of devolving asignificant level of decision making to the community.

The future of the Hepburn Shire is an exciting one and all residents andratepayers are being invited to help shape that future.

Victor SzwedChief Executive Officer

Daylesford

Warren MaloneyMayor - Birch Ward

Heather Mutimer Deputy Mayor - Coliban Ward

Michael CheshireCameron Ward

Phil MillarCreswick Ward

Max O’SheaHolcombe Ward


Hepburn Shire Annual Report 2003 1Hepburn Shire Annual Report 2003 3

The Council O r g a n i s ation Chart

Victor SzwedChief Executive Officer(Responsible for overall Council management,policy directives)

Rod ConwayDirector Infrastructure & Development(Engineering,planning,environmental health,compliance,building,outdoor staff)

Anthony GreenwoodDirector Corporate Services(Financial services,community services, rates,payroll,superannuation,councilcontrolled properties,leases,community groups,libraries)

John TraillManager Administration and Finance

Martin WalmsleyManager Community Services

Andrew BourkeManager Operations

Judith BedfordManager Planning and Economic Development

Geoff RyanManager Tourism and Recreation

Wayne MooreManager Contract Services Unit


ManagerCompetitive Services

DirectorInfrastructure & Development

ManagerOperations

ManagerPlanning & Economic Development

ManagerTourism & Recreation

DirectorCorporate Services

ManagerAdministration & Finance

ManagerCommunity Services

Senior Officers of Council

CIVIC LEADERSHIP

In March 2003 the municipal elections saw fournew Councillors (Crs Mutimer, Maloney, Cheshireand Millar) elected onto Council with CouncillorO’Shea being returned at the election.Thissignificant change in Councillor composition has ledto a greater emphasis being placed on Communityconsultation.Council has initiated a Rate reviewCommittee made up entirely of Communitymembers without any Councillor or officer being onthe committee.This model of consultation relatingto how the rate burden should be shared,is a firstfor Victoria.

Due to the change of Councillors in March 2003,theformulation of the Council plan 2003 – 2006(Corporate Plan) took on an extra significance.TheCouncil Plan 2003 – 2006 clearly indicates thedirection of the new Council.One of the keyelements is the establishment of a Community Plan.It is expected that the Community Plan will reflectthe community’s ambitions of the Shire over thenext twenty years.Community consultation will bethe key to ensuring that the Community Plan isrelevant and has longevity.

Council has completed the following strategic plansduring 2002/03:

• Road Safety Strategy.

• Daylesford Character Study.

• Creswick Community Development Plan.

• Industrial Land Strategy.

• Roadside Management Plan.

• Waste Wise Strategy updated.

Council has also commenced a StormwaterManagement Plan and a Tourism Plan.

Audit certificates have been issued for Council’sMunicipal Emergency Management Plan and theMunicipal Fire Prevention Plan.

Community Services and Waste Management wereboth put through the Best Value process during2002/03.They both received their final sign-off byCouncil in September 2003.

COMMUNITY SUPPORT ANDD E V E L O P M E N T

Hepburn Shire Council has been actively involved ina number of community development projectsduring the year. These include:

• Central Highlands Primary Care Partnership

• Daylesford Neighbourhood House & LearningCentre Committee of Management

• Hepburn Supported Residential ServicesWorking Group

• Hepburn Life Options Co-ordinated Access toLearning

• Access and Inclusion Steering Group

• Hepburn Access Working Group

Aged and Disability Services

Hepburns Home and Community Care team,comprising 35 Home Care Workers delivered 13,322hours of Home Care,3,279 hours of Personal Care,3,297 hours of Respite Care,480 hours of PropertyMaintenance,and 13,984 person hours of PlannedActivity Groups. The Meals on Wheels service,which is contracted to Hepburn Health Service,provided 31,030 meals.

In addition, Council’s Home Care Workers werecontracted to provide more than 5,100 hours ofHome Based Services to clients within the Shire,under our Contract Services program.

Community Visitors Scheme

Hepburn Shire Council has taken a lead role inrelation to the Community Visitors Scheme.TheCommunity Visitors Scheme is a CommonwealthGovernment funded initiative targeted at peopleliving in nursing homes and hostels in Creswick,Daylesford, Trentham, Kyneton and Ararat.Volunteer visitors are recruited to spend time withresidents who have indicated that they wouldwelcome a visitor.

Maternal & Child Health Program

The Maternal and Child Health program iscontracted to Hepburn Health Service. During theyear 148 birth notifications were received. Maternal& Child Health Nurses provided more than 1,900consultations.

48 families within the Shire were assisted on theMaternal & Child Health Enhanced Home VisitingService.

Youth

Youth activities within Hepburn during 2002/03included:

• Daylesford Small Day Out

• Shire Youth Week Youth Cabaret

• Youth in action workshops at Clunes

• Youth Alliance reformed in Creswick

• Youth club formed in Trentham

• Monthly junior discos in Daylesford

• Regular dance parties in Daylesford

• Redevelopment of the youth theatre inCreswick.

• The establishment of a youth space inDaylesford.

• Participation in Swiss Italian Fiesta and Words inWinter festival

• Good Sports Award and Team Spirit awards toall football clubs in the Shire.

SERVICING HEPBURN / MAJORP R O J E C T S

The following major initiatives / projects werecompleted in 2002/03:

• Trentham Visitor & Information Centre and Domino Walking Trail $228,000

• Mineral water Display at Daylesford Information Centre $134,000

• Streetscape Works- Vincent Street,Daylesford $236,000

- Albert Street,Creswick $158,000

- Main Road, Trentham $210,000

- Hepburn Springs $ 68,000

• Refurbishment of Creswick rotunda

• Completion of Creswick Streetscape project

• Completion of Trentham Streetscape project

• Completion of Carparking and TrafficImprovements in Vincent Street SouthDaylesford

• Completion of Hepburn Bike path betweenDaylesford and Trentham

• Completion of footpath renewal between 6thand 10th street Hepburn Springs

• New pedestrian access footpath betweenThornton and Fraser street Clunes

• Renewal of Langs Road bridge Kangaroo Hills

• Completion of Mineral Waters Interpretativedisplay

• Upgrade of Trentham Visitor information centre

• Upgrade of Soda (HMSR) and Jubilee LakeMineral Springs

• Completion of Central Gardens (HMSR) works

• Closure of Clunes Tip and completion of landfillrehabilitation

• Replacement of major drain culverts in HighStreet Trentham

• Construction of Bus Interchange at DaylesfordSecondary College

• Sealing of entrance to Doug Lindsay ReserveCreswick

• Upgrade works on Councils swimming Poolsacross the municipality

• Upgrade works at Lyonville and MollongghipHalls

• Completion of restoration works to CreswickCourt House

• New seven year contracts awarded for garbagecollection and recycling to Cleanaway andAcceptance & Sorting of Recyclable Materials toLyonville Rubbish & Recyclers.

• Recycling service changed in March 2003 forhouseholds in collection district from 60 litrecrates fortnightly to 240 litre mobile binsfortnightly.

4 Hepburn Shire Annual Report 2003

Performance Overview for 2002/2003

TOURISM & RECREAT I O N

• New Trentham Town Map and a new DaylesfordBrochure were both produced in 2002/03.

• $145,000 Grants received for the refurbishmentof the Daylesford Regional Visitor Centre.

• Completion of the new mineral water displayand refurbishment at the Daylesford RegionalVisitor Information Centre.

• 16% increase in visitors to the DaylesfordRegional Visitor Information Centre.

• visitdaylesford.com website used by over 500people per day.

• Attracting the American Mini Series Salem’s Lotto Creswick and the ensuing community benefitsalong with $1.5 million worth of free publicity forCreswick.

• Councils Recreation Advisory Committeecontinues to be promoted by the StateGovernment as a best

• practice model and is beginning to be duplicatedby other municipalities.

• $50,000 grant received for Trentham BowlingClub.

• $30,755 grant received for Newlyn RecreationReserve.

• Establishment of Councils new event liaisonprocess with event organizers from across theShire who are responsible for events,whichconservatively attract $4.1 million to our shire.


Victorian Local Government I n d i c at o r s

Affordability/ Cost of Governance

1. Indicator : Average rates and charges per assessment

Result : $615

Indicator Definitions : Rates and charges declared as being receivable,in the calculations for the adoptedrates, at the beginning of the year, including:

• General rates and charges declared under ss.160,161,161A of the Local Government Act 1989;

• Municipal charges and service rates and charges (ie garbage services) levied under ss.159,162respectively; and

• Supplementary rates declared, divided by the number of assessments used in the calculation of theadopted rate (ie.When the rate is struck).

2. Indicator : Average rates and charges per residential assessment.

Result : $553

Indicator Definitions : Rates and charges declared for all residential assessments divided by the numberof residential assessments.

Sustainability

3. Indicator : Average liabilities per assessment

Result : $521

Indicator Definitions : Total liabilities as per the published financial statements (ie.AAS27); less items heldin trust (reflected in assets also held); divided by the number of assessments used in the calculation ofthe adopted rate (ie.When the rate is struck).

4. Indicator : Operating result per assessment

Result : $665 surplus

Indicator Definitions : Operating result per financial statements (ie.AAS27) divided by the number ofassessments used in the calculation of the adopted rate (ie when the rate is struck).

This indicator has been effected in the 2002/03 financial year by the inclusion of Capital Grants of$1,012,934 and the revaluation of the majority of infrastructure assets resulting in an increase of$8,008,579.

Result excluding these two factors is : a $300 deficit per assessment

Services

5. Indicator : Average operating expenditure per assessment

Result : $1,874

Indicator Definitions : Operating expenditure per the financial statements (ie.AAS27) (including assetsales and depreciation); divided by the number of assessments used in the calculation of the adopted rate(ie.when the rate is struck).

6. Indicator : Community satisfaction rating for overall performance generally of the Council

Result : 56%

Indicator Definitions : Satisfaction rating of 1 to 5 is reported by residents in the annual ConstituentSatisfaction Survey for local governments. Indexed mean result (out of 100) to be reported by each Councilas taken from their individual research results report.

Infrastructure

7. Indicator : Average capital expenditure per assessment

Result : $394

Indicator Definitions : Amount capitalised to the Balance Sheet and contributions by a local government tomajor assets not owned by the local government,including expenditure on:

• capital renewal of existing assets which increases the service potential or extends the life of the asset;

• capital expansion which extends the standard of an existing asset at the same standard as currentlyenjoyed by residents to a new group of users;

• capital upgrade which upgrades the standard of an existing asset to provide a higher level of service; or

• expenditure that will increase the life of the asset,divided by the number of assessments used in thecalculation of the adopted rate (ie.when the rate is struck).

Note: Exactly what is included as capital expenditure will vary according to the local government’s policy indefining the “asset”and its “life”.

Clunes


W h i s t l e b l o w e r sProtection Act 2001The Whistleblowers Protection Act 2001 becameoperational on 1 January 2002.

Council has adopted a detailed proceduredocument to ensure that the WhistleblowersProtection Act 2001 is fully implemented at theHepburn Shire Council.

The objective of the Whistleblowers Protection Act2001 is to encourage and facilitate the making ofdisclosures of improper conduct or detrimentalaction by public officers and public bodies.The Actis inclusive of Council,Council Officers andCouncillors.The Act provides protection towhistleblowers that make disclosures inaccordance with the Act.

The Act requires the Hepburn Shire Council to:

• Promote the policy of the Act to staff members;

• Establish and publish written procedures;

• Receive and assess disclosures of improperconduct;

• Refer disclosures to the Ombudsman;

• Carry out investigations referred to theOmbudsman;

• Take action in response to findings thatimproper conduct has occurred;

• Protect whistleblowers from reprisals;

• Collate and publish statistics about disclosuresreceived.

Council has complied with all of the requirementsof the Whistleblowers Protection Act 2001.

Improper conduct is defined as conduct that iscorrupt,a substantial mismanagement of publicresources,or conduct involving substantial risk topublic health or safety or to the environment. To becovered by the Whistleblowers Protection Act 2001,the conduct must be serious enough to constitute,if proven,a criminal offence or reasonable groundsfor the dismissal of a member of staff.

Council has appointed its Director CorporateServices (Anthony Greenwood) as its protecteddisclosures coordinator. Mr. Greenwood can becontacted by phoning (03) 5321 6407.Thealternative contact person is The Ombudsman (DrPerry) (03) 9613 6202.The Protected DisclosuresOfficer is required to take all necessary steps toensure the identity of the whistleblower and theidentity of the person who is the subject of thedisclosure are kept confidential.

A copy of the Hepburn Shire Council WhistleblowersProcedures can be obtained by either contactingthe protected disclosures coordinator or byaccessing them from the Hepburn Shire CouncilWeb site: www.hepburnshire.com.au

During the 2002 / 2003 financial year, Council didnot receive any disclosures under theWhistleblowers Protection Act 2001.

8. Indicator : Renewal Gap

Result : 56%

Indicator Definitions :

• Ratio of current spending on capital renewal to the long term AAAC.

The Average Annual Asset Consumption (AAAC) is the amount of a local government’s asset baseconsumed during a year based on current replacement cost; divided by useful life; and totalled for eachand every infrastructure asset.

9. Indicator : Renewal and Maintenance Gap

Result : 68%

Indicator Definitions : Ratio of current spending on renewal plus maintenance to Average Annual AssetConsumption plus maintenance (the expected level of maintenance which was used in the calculation ofthe useful life of the asset). divided by useful life; and totalled for each and every infrastructure asset.

Governance

10.Indicator : Community Satisfaction Rating for Council’s Advocacy and Community Representation on keylocal issues

Result : 58%

Indicator Definitions : Council result from the Annual Community Satisfaction Survey for LocalGovernments.

11.Indicator : Community Satisfaction Rating for Council’s Engagement in Decision Making on Key LocalIssues

Result : 54%

Indicator Definitions : Council Result from the Annual Community Satisfaction Survey for LocalGovernments.

Equal Employment OpportunityThe Council of the Hepburn Shire is wholly committed to the principles of Equal Employment Opportunity.

In all policies and practices of the Council there shall be no discrimination relating to sex,marital status,parenthood,race,colour, national origin,physical or mental impairment,religious or political affiliation.

Selection of individuals for employment,promotion or advancement,training and staff development will be onthe basis of personal merit,in fair and open competition according to their skills,qualifications,knowledge andefficiency relevant to the position involved.

The Council’s commitment to Equal Employment Opportunity reflects our desire to enjoy a workplace free ofdiscrimination where each person has the opportunity to progress to the extent of his or her ability.

S TAFF ANALYSIS

Total staff 130 (Effective Full Time Positions 94.8)

Full time Part-time Casual

Female Male Female Male Female Male

Admin.and Finance 10 7 6 5 4 0

Community Services – Indoor 3 2 6 1 1 0

Community Services – Outdoor 0 0 22 0 7 1

Customer Services 6 10 0 4 2 0

Parks and Gardens 1 6 0 0 0 0

Works 1 25 0 0 0 0

Total 21 50 34 10 14 1

P r i va cy Po l i cyThe Information Privacy Act 2001 (Vic) and the Health Records Act 2001 (Vic) have recently been enacted.Council is committed to the principles identified in these Acts and has subsequently adopted a Council policy“Privacy Policy”.

Council’s Privacy Policy sets out Council’s commitment to protecting the privacy of all personal information.Council has appointed a Privacy Officer being its Director Corporate Services (Anthony Greenwood) who can becontacted on 03 5321 6407. A copy of Council’s Privacy Policy can be obtained from Council’s web site(www.hepburnshire.com.au) or by contacting Mr. Greenwood.

C o u n c i l ’s Best Value Program

S TATUS REPORT ON THE BEST VALUE POLICY PROGRAM

Council has adopted a Best Value timetable that resulted in all of Council’s services beginning the Best Valueprocess in 2001/02.Steps one and two (defined below) being service definition and quality / cost standardswere developed for each service within the 2001/02 financial year.

The Best Value Process adopted by the Hepburn Shire Council is set out below:

• Define service (brief description of key activities).

• Develop draft performance indicators for quality and cost standards and monitor them.

• Benchmark quality and cost standards.

• Consult community on quality and cost standards.

• Review service- Best on offer- Assessment of value for money in service delivery- Community expectations and values- Balance of affordability and accessibility of services- Opportunities for local employment –

growth / retention

• Develop strategies to improve performance in service delivery.

Council’s Best Value Timetable is provided below

SERVICE REVIEW TARGET REVIEWCOMMENCEMENT DATE COMPLETION DATE

Community Services Commenced 1st Quarter 2003

Administration Commenced 2nd Quarter 2003

Waste & Environment Commenced 2nd Quarter 2003

Public Amenities Commenced 3rd Quarter 2003

Governance Commenced 4th Quarter 2003

Fleet Services Commenced 4th Quarter 2003

Financial Services Commenced 4th Quarter 2003

Risk Management,Contract Management Commenced 4th Quarter 2003 & Purchasing

Health & Local Laws Commenced 3rd Quarter 2004

Passive & Active Recreation Commenced 3rd Quarter 2004

Development Services Commenced 3rd Quarter 2004

Road Infrastructure Commenced 4th Quarter 2004

Tourism / Economic Development Commenced 4th Quarter 2004

BEST VALUE PROGRAM - PROGRESS

Council planned to have three services complete the Best Value process during the 2002/03 financial year.Two of these services (Community Services and Waste & Environment) received their final sign-off by Councilat the September 2003 Council Meeting.The third service being Administration is expected to be signed-offin early 2004.


Creswick

Trentham


Report on Service Reviews commenced and/or completed

Community Services

Administration



Waste & Environment

Fleet Services



Public Amenities

Governance



Financial Services

Risk Management, Contract Management and Purchasing



Health & Local Laws

Passive & Active Recreation



Development Services

Road Infrastructure



Tourism & Economic Development

Local Government Improvement Incentive Program Stat e m e n t2 0 0 2 - 2 0 0 3

C E RT I F I CATION BY CHIEF EXECUTIVE OFFICER

The Hepburn Shire Council has complied with the requirements of the LocalGovernment Improvement Incentive Program in respect of:

• National Competition Policy (in accordance with National Competition Policyand Local Government – A Revised Statement of Victorian Government Policy(January 2002));

• Best Value (Ministerial Code of Reporting Best Value Principles) in accordancewith the Ministerial Code of Reporting Best Value Principles; and

• Asset Management (Asset Management Reporting) in accordance with theMunicipal Association of Victoria’s (MAV) STEP program.

for the financial year 2002/2003 as set out below:

A Trade Practices Compliance Compliant

B Local Laws Compliance Compliant

C Best Value Competitive Neutrality Compliance Compliant

D Ministerial Code of Reporting Best Value Principles Compliant Compliance

E Asset Management Reporting Compliance Compliant

I certify that:

1. This statement has been prepared in accordance with the 2002/03 LocalGovernment Improvement Incentive guidelines issued by the Minister forLocal Government (April 2003) for reporting on the following three criteria:-National Competition in accordance with National Competition Policy andLocal Government – A Revised Statement of Victorian Government Policy(January 2002),Best Value (Best Value Principles Ministerial Code ofReporting) in accordance with the Ministerial Code of Reporting Best ValuePrinciples,as published in the Victoria Government Gazette dated 30November 2000; and Asset Management (Asset Management Reporting) inaccordance with the MAV’s STEP program; and

2. This statement presents fairly the Council’s implementation of the NationalCompetition Policy, Best Value Principles and Asset Management Plans.


Date:30/09/2003


The Shire of Hepburn is committed to accountability. Council’s financial reportsare prepared in accordance with the Australian Accounting Standards,and assuch,use particular terminology and conventions that may not be familiar tosome readers. This Plain English Guide has been developed to assist readersunderstand and analyse our financial reports.

What is contained in the Financial Report?

The first four pages of Council’s financial report contain four major disclosuresthat are collectively known as the Financial Statements. These key documentsprovide an overview of the transactions that occurred during the year and asummary of the financial status of Council at the end of the year. The balance ofthe financial report is called the Notes and these provide explanations of theaccounting policies and further details on the values contained in the fourStatements. Details about the information contained in each of the fourStatements and the Notes are provided in the following pages.

The Four Financial Statements

At the start of the report there are four Statements. These Statements form thebasis of the financial report and are titled the Statement of Financial Performance,Statement of Financial Position,Statement of Changes in Equity and theStatement of Cash Flows.

1 S TATEMENT OF FINANCIAL PERFORMANCE

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

To aid meaningful comparisons between years,large and unusual items,suchas large once off grants,are classified as Extraordinary Items. These areseparated from normal Revenue and Expenses so that comparisons to theprior year are not distorted.

The key figure to look at is the result from ordinary activities prior toExtraordinary Items. This is equivalent to the profit or (loss) for the year,however this does include the allowance for depreciation of roads,buildingsand other assets.

2 S TATEMENT OF FINANCIAL POSITION

This Statement is like a Balance Sheet in a company report. It is a snap shotof the financial situation as at 30 June. It shows what the Council owns asAssets and what it owes as Liabilities. The bottom line of this Statement isNet Assets. This is the net worth of Council that has been built up over manyyears.

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

Plain English Guide to Council’s Financial Report

The items included in the Statement of Financial Position are:

Current AssetsCash Assets Uninvested cash held in the banks and as petty cashInvestments Cash invested in bank bills and term depositsReceivables Monies owed to Council by ratepayers and others which hasbeen invoiced or bills sentAccrued Income Monies owed to Council which was not invoiced as at30 JuneProperty held for resale Land which is proposed to be sold in the coming 12 months.Other Inventory and services which have been prepaid

Non-Current Assets

Property Infrastructure,Plant and Equipment Land,buildings,roads,vehicles,equipment,etc.which has been built up by Council over many yearsInvestments in Associates The value of Council’s equity in the RegionalLibrary

Current and Non-Current Liabilities

Payables People and businesses to whom Council owes moneyProvisions The accrued value of Long Service Leave and Annual LeaveInterest Bearing Liabilities The outstanding balance Council owes on Bankloans.Current interest bearing liabilities represent the amount to be repaid in2003/2004Superannuation The amount owed by Council to the Local AuthoritiesSuperannuation Fund

Net Assets and Total Equity

These terms describe the worth that the Council has built up over manyyears.Net Equity is the difference between all the assets and all the liabilities.Total Equity is the term used to describe the components of Net Assets.Thesecomponents are:Accumulated Surplus The value of all net assets,other than those directlybelow, which has been accumulated over time.Asset Revaluation Reserve The difference between the previously recordedvalue of assets and their current valuations.Statutory Reserves Funds that have restrictions placed on their use and arenot readily available for use by Council

A reduction in total equity means that the overall value of the Council hasfallen. There can be many reasons for this. However, it usually means thatlevel of new capital investment has not kept pace with depreciation. This isnot unusual in the short term because of the cyclical nature of assetreplacement. However, in the longer term and in the absence of a strategicdownsizing program,a reduction in total equity can be of concern.

3 S TATEMENT OF CHANGES IN EQUITY

Over the course of the year the values which make up Total Equity canchange. This Statement shows the values of such changes and how thesechanges arose.

The most important value to consider is the movement in the AccumulatedSurplus. Such movements arise from a reduction in the value of Council’smajor asset groups or an increase in liabilities.

4 S TATEMENT OF CASH FLOWS

The Statement of Cash Flows summarises cash payments and cash receipts for the year. The values inthis Statement may differ from those shown in the Operating Statement because the OperatingStatement is prepared on an accrual accounting basis.

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

Cash Flows from Operating Activities

ReceiptsAll cash receipts arising from the general operations of Council. It includes rates,general trading salesand debtors,grants and interest earnings. Receipts do not include cash from the sale of assets or loanfunds.

PaymentsAll cash paid by Council from its bank account to staff,creditors and other persons. It does not includethe costs associated with the creation 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 are recorded.

The bottom line of the Statement of Cash Flows is the Cash at the End of Financial Year. This shows thecash position of Council to meet its debts and other liabilities. It is important to note that this figure haschanged as a result of more funds being placed in reserves.

Notes to the AccountsThe Notes are a very important and informative section of the report. The Australian AccountingStandards sometimes offer alternative ways to record and value transactions or assets. Therefore,themethods chosen by Council are shown in the Notes.

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

The Notes also provide an opportunity for Council to disclose additional information that can not beincorporated into the Statements.

Other Notes disclose information on:

• The cost of the various functions of Council,

• The break down of expenses,revenues,reserves and other assets,

• Contingent liabilities,

• Transactions with persons related to Council,

• Comparisons of Budget to Actual results,and

• Financial performance indicators.

The Notes should be read at the same time as, and together with,the other parts of the FinancialStatements 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 onbehalf of Council.

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


2 0 0 2 / 2 0 0 3Community GrantsName of Organisation Amount $

Creswick Municipal Band Inc. 1,000

Daylesford Concert Brass 315

Daylesford Municipal Band Inc 1,000

Gayle McCarthy - Disability awareness campaign 500

Trentham Historical Society – Walking trail booklet 500

Fabulous Flower Festa 300

Daylesford Christian Fellowship youth group 700

Daylesford Fire Brigade – Positive pressure air ventilator 2,000

Clunes & District Agricultural Society – relocation of toilet block 1,000

YMCA – Fitness classes in Clunes 750

Clunes Landcare – incorporation 200

Life Education Ballarat & District 800

Central Highlands Rural Counselling 500

Lions Club of Ballara t 90

Calembeen Park 455

Friends of Park Lake Reserve – incorporation 300

Plain English Guide to C o u n c i l ’s Financial Report c o n t i n u e d

2002/2003 M e m b e r s h i p sOrganisations of which Hepburn Shire Council was a member in 2002/2003 comprised:

Organisation Central Highlands Consultative CommitteeAnnual Fee $ NilOther Amounts and Services Officer participation on working parties

Organisation Central Highlands Regional Library ServiceAnnual Fee $ 150,745Other Amounts and Services Councillor and officer participation on working parties

Organisation Ranges Tourism AssociationAnnual Fee $ NilOther Amounts and Services Officer participation on working parties

Organisation MAV (Municipal Association Victoria)Annual Fee $ 15,200Other Amounts and Services Councillor and officer participation on working parties

Organisation Highlands Regional Waste Management GroupAnnual Fee $ 1,178Other Amounts and Services Councillor and officer participation on working parties

Organisation Parks and Leisure AustraliaAnnual Fee $ 155

Organisation Timber TownsAnnual Fee $ 2,200Other Amounts and Services Councillor and officer participation on working parties

Organisation VECCIAnnual Fee $ 1,713

Organisation Victorian Local Governance AssociationAnnual Fee $ 2,500

Organisation Our Communities Pty LtdAnnual Fee $ 300

Organisation Victorian Caravan Parks AssociationAnnual Fee $ 419

Organisation Spa Chamber of CommerceAnnual Fee $ 100


Information Available for Public Inspection• A Statement of Financial Performance.

• A Statement of Financial Position.

• Notes to the financial statements.

• Details of allowances fixed for the Mayor and Councillors underSection 74 of the Local Government Act 1989 as amended.

• Details of Senior Officers’ current gross salaries,allowances andother benefits for the current financial year and two previousfinancial years.

• Details of overseas and interstate travel,with the exception ofinterstate travel to a neighbouring municipality, undertaken in anofficial capacity by Councillors or any member of Council staff in theprevious twelve months.

• Names of Council Officers who were required to submit a return ofinterest during the financial year and the dates the returns weresubmitted.

• Submissions received under Section 223 of the Act during theprevious twelve months.

• Names of Councillors / Commissioners who submitted returns ofinterest during the financial year and the dates the returns weresubmitted.

• Agendas or Minutes of Ordinary and Special Meetings kept underSection 93 of the Act except where such minutes relate to parts ofmeetings which have been closed to members of the public underSection 89 of the Act.

• A list of all major committees established by the Council which wereabolished or ceased to function during the financial year.

• Agreement to establish regional corporations under Section 196 ofthe Act.

• Guarantees given by the Council under Section 197 of the Act.

• Applications for enrolment on the voters roll under Section 12 and13 of the Act for the immediate past roll and the next roll beingprepared.

• Minutes of meetings of Special Committees established underSection 86 of the Act except where such minutes relate to parts ofmeetings which have been closed to members of the public underSection 89 of the Act.

• Register of delegations kept under Section 87 of the Act.

• Register of delegations kept under Section 88 of the Act.

• Register of leases entered into by the Council.

• Register of authorised officers appointed under Section 224 of theAct.

All enquiries concerning access to documents under the Freedom ofInformation Act 1982 may be directed to the Manager Administrationand Finance, at the Daylesford Town Hall,76 Vincent Street,DaylesfordVic 3460,telephone (03) 53482306.


Financial Report Table of Contents

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Statement of Financial Performance for the year ended 30 June 2003


Statement of Financial Po s i t i o nfor the year ended 30 June 2003

MAIN OFFICE - DAYLESFORD TOWNHALL

76 Vincent Street

Daylesford Vic 3460

Ph: (03) 5348 2306

Fax: (03) 5348 2911

MAILING ADDRESS

PO Box 21, Daylesford Vic 3460

INFRASTRUCTURE AND DEVELOPMENT SERVICES

Cnr. Duke & Albert Streets

Daylesford Vic 3460

Ph: (03) 5348 1577 or 5348 1633

Fax: (03) 5348 1304

CRESWICK OFFICE

68 Albert Street

Creswick Vic 3363

Ph: (03) 5345 8399

Fax: (03) 5345 8041

SHIRE EMAIL AND WEB ADDRESS

Email: [email protected]

Web: www.hepburnshire.com.au

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