[providing services on behalf of knox city, maroondah city ... · the basin 12.5 2.5 7.5 0 2.5 20...

[Providing services on behalf of Knox City, Maroondah City and Yarra Ranges Councils]

Page | 1

BACKGROUND

Eastern Regional Libraries Corporation provides library services to the Knox City Council, Maroondah City Council and

Yarra Ranges Council. Together the three municipalities cover a large geographic area in the outer metropolitan area

of Melbourne. Brief Member Councils’ Profiles are provide later in the Library Plan.

There is a diverse range of communities with a combined population of 402,000 people, as follows:

Population Area

Knox 154,000 113.8 klms ²

Maroondah 103,000 61.4 klms ²

Yarra Ranges 145,000 2500 klms ²

Council Plans & Strategies

The Library Plan takes into account Member Council’s Plans and other adopted strategies, in addition to the following

specific library strategies:

Knox City Council Review of Library Infrastructure & Service Delivery

Maroondah City Council

Ringwood Library, Learning & Cultural Centre Development

Yarra Ranges Council Library Strategy and Action Plans

Yarra Ranges Mobile Library Service Report

Regional Demographics and Social Environment

ABS Statistics indicate that by 2012 our population aged 60 + will continue to increase. There will be large increases in

the 65+ (almost 17.6% of the Region’s population) and the 70+ cohorts. These groups are often retired with time

available to spend reading and using libraries.

Families with young children also make up a large section of the population served by ERLC. ABS statistics also show

that over 25% of the population is less than 19 years, so ERLC has a strong commitment to cater for the needs of this

demographic group.

As a society we are increasingly “time poor”. This has an impact on library use as people have less free time to access

libraries. People tend to buy their own books. Technology such as the Internet has also impacted on library use as people

can now access information at any time.

ERLC is very aware of the need to promote high literacy levels within the community. The area contains, one hundred

and eight pre-schools, one hundred and thirty-seven primary schools, fifty-four secondary schools, two TAFE campuses,

three University of the Third Age groups, several Citizens Advice Bureau as well as numerous other community

information and referral centres.

Childhood Development & Socio Economic Characteristics.

The East of Melbourne is often linked with the idyll of middle class, leafy suburbs that slowly roll into the beautiful

bucolic Dandenong Ranges and valleys. However, this generalization hides large pockets of ‘vulnerability’ and ‘socio-

economic’ disadvantage.

The social, structural, economic, political and cultural environment impacts on the resources available to families and

to children. The character of the communities in which families live, including the economic climate and accessibility

of appropriate services, have significant influence on their wellbeing.

‘Those at risk include people from non-English-speaking backgrounds, new settlers, people with physical and sensory

issues, drug and alcohol problems, mental health, single parent families, low income, vulnerable people and the aged,

aboriginal and Torres Strait Islanders. However, there was also geography to such exclusion, with concentrations in

social housing estates, fringes of towns and cities, rural and remote areas’ (Williams, Tim, 2011)

The local area data indicates that there are areas of high vulnerability in our region, and the three most challenged

areas for each of our Member Councils are shown in the Table below.

Page | 2

AEDI & SEIFA INDICES.

Physical

health and

wellbeing

Social

competence

Emotional

maturity

Language

and

cognitive

skills

(school-

based)

Comm. skills

and general

knowledge

Vulnerable

on one or

more

domains of

the AEDI

Vulnerable

on two or

more

domains of

the AEDI

SEIFA

index

(score)

% % % % % % %

Knox

Bayswater 11.8 15.4 14 5.9 12.5 28.7 17.6 994.6

Boronia 10.5 6.7 12.9 5.7 7.2 23.4 9.1 1008.56

The Basin 12.5 2.5 7.5 0 2.5 20 2.5 1051.44

Maroondah

Bayswater

North

11.4 15.2 19 8.9 6.3 31.6 17.7 1004.06

Croydon Hills 8.4 9.6 15.7 9.6 6 24.1 14.5 1106.52

Ringwood

Central

10.7 12.9 10.7 5.7 14.3 27.9 16.4 950.00

Yarra Ranges

Belgrave 18.2 6.8 13.6 4.5 11.4 34.1 9.1 1054.96

Silvan/

Macclesfield /

Yellingbo

15.6 18.8 9.4 9.4 12.5 40.6 15.6 1055.87

Warburton 20 33.3 33.3 20 20 40 26.7 955.94

AEDI: A national collection of information on young children’s development. Data are collected every three years and the results provide a

snapshot of how our children are developing. The results indicate the percentage of the children’s population vulnerable under five domains.

SEIFA: This suite of indexes ranks geographic areas across Australia in terms of their socio-economic characteristics. The Index of Relative Socio-

economic Disadvantage (used in Table above) uses information such as low income and low education as markers of relative socio-economic

disadvantage. For the index, relative disadvantage is associated with a low number.

The Literacy Divide

Adult literacy is a major challenge for all levels of government.

According to the ABS, 46%*(prose scale) and 47%* (document scale) of adult Australians cannot function effectively in

a knowledge based economy. 40%* (literacy skills) and 44%* (numeracy skills) of the Australian workforce are

affected.

In a recent survey 75%** of employers surveyed indicated that their businesses are affected by these low levels

* Adult Literacy & Life Skills Survey ABS 2006

** When Words Fail, AIG 2012

There is a major role for public libraries: in advocating for the greater understanding of the value of reading to

children, and parents' effect on early childhood cognitive, language, emotional and social development; and raising

awareness of the public library network's value and capacity when addressing literacy issues on federal, state and

local education agendas relating to social, cultural and economic outcomes.

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The Digital Divide

The latest data from the Australian Bureau of Statistics (ABS) shows that in 2010–11, 82% of all Victorian households

had a computer (up from 69% in 2005–06) and 79% of persons aged 15 years and over accessed the internet during

the year.

The 21% who did not access the internet during the year are not a simple cross-section of the Victorian population. In

2010–11, of all Victorians aged 15 years and over:

• 63% of people aged 65 years and over did not access the internet, and nor did 29% of those aged 55–64 years

• 40% of people who were unemployed did not access the internet (predominantly unemployed and retired people)

• 30% of people with an educational qualification at or below Year 12 or equivalent did not access the internet

• 29% of people born in countries where English is not the main language did not access the internet

• 28% of people on personal incomes less than $40,000 did not access the internet.

Significant Features of Our Communities and Region

� Family life is highly valued

� Emphasis is placed on strong and sustainable communities

� The environment is highly valued

� Our communities value their local cultural heritage

� Leisure and recreation play an important role in the lives of communities

� Cultural diversity is a feature of the Region

� Generally our communities are aging and services to seniors are important

� The area is geographically diverse - from urban towns to small rural communities

� The economy of the region is diverse, from farming and vineyards to retail, large manufacturing and the ever-

growing service industry.

� Areas of growth and development include the Rowville/Lysterfield area in Knox and also the City of Maroondah

� Ringwood is the third largest retail precinct in the Melbourne metropolitan area will soon become a major transit

city with population growth

� Vibrant retail centres continue to grow at Knox City, Studpark, Chirnside Park and Eastland

� Tourism is a vital part of the economic growth of the Shire of Yarra Ranges

� Significant tourist features include Member Councils’ golf courses, recreation centres, Healesville Sanctuary, The

Dandenong Ranges, Puffing Billy Railway and the Yarra Valley wine regions

Page | 4

FUTURE OF PUBLIC LIBRARIES

The opportunity for public libraries is to continue their transition from a passive, product based environment, to

delivering active, service-based experiences.

Public Libraries New Zealand in its strategic framework has captured the changing nature of libraries in the following

chart:

Information Age – Product Based Knowledge Society – Service Based

Bringing the world’s information to the

community

Expert in finding the right piece of information

Platform for searching and finding

Physical media and text dominate

Circulating and distributing physical collections

Collecting and preserving local content

Purchasing and owning collections

Describing and organising information held in the

library

Place of consumption of knowledge

Stand-alone library

A place primarily for housing collections

Libraries working mostly within their local

authority boundaries, or collaborating regionally

Services developed with customer focus

Librarians as keepers of knowledge and

information

Physical spaces

� Pushing the community’s information to the

world

� Expert in curating and putting content in context

� Platform for creating and innovating

� Digital media and multimedia dominate

� Facilitating access to digital content

� Creating and sharing local content for reuse

� Purchasing access to digital content

� Working with users to enrich and link information

beyond the library’s walls

� Place for creating new knowledge

� Multi-purpose facility – library located with other

functions

� A place for people engagement

� Public libraries work as one to maximise benefits

for customers and rate payers

� Services developed with customer involvement

� Librarians as enablers and teachers of skills

� Physical, virtual, ubiquitous and mobile spaces

Passive, product based Active, service based

Public Libraries Customer Experience

Page | 5

Many public libraries around the world are well advanced on this journey, and public libraries across Victoria, including

ERLC, are already at varying stages along this journey.

Our community libraries can make a significant difference in people’s lives, if they:

� can go to their local public library – a welcoming, safe, convenient and comfortable community location.

� can access the internet and WiFi to bridge the digital divide.

� will be able to get help from library staff or attend a training course on how to use a computer, how to log on to

the internet, and how to search for information.

� obtain services from/or on behalf of other providers.

� engage with other community members.

Next Five Years

In the next five years our libraries will continue to provide services such as:

Improved welcoming community spaces

Integrated online catalogues and circulation systems

Magazines, CDs, DVDs and other media as well as books for loan

Access to electronic resources and e-books

Tools and equipment to access the Internet, including free WiFi

Programmes in support of literacy and lifelong learning

Materials and programming in in languages other than English (limited)

Opening hours on five, six or seven days a week

Targeted community outreach

Skilled staff to assist customers to find resources to meet their needs.

Extended Role for Our Libraries

The extended role of our libraries for the foreseeable future is:

� Fostering the joy of reading

� Supporting the development of literacy in all its forms

� Enabling independent lifelong learning, research and innovation

� Providing business services (e.g. videoconference facilities)

� Collecting, curating and providing access to knowledge, ideas and works of the imagination

� Collecting, creating and making available local content and history, including archive spaces - a strong local history

collection in print and digital formats

� Creating learning spaces, training spaces and workshop facilities - formal and informal spaces that allow for

individual and group learning

� Providing social spaces and lounges - providing a community ‘living room’ feel that might include café area / catering

- providing a relaxed draw card for locals to linger and interact

� Communal Meeting Spaces - For community forums, public lectures and information sessions

and most importantly:

� Providing community based services for all, in places that are at the ‘heart of local communities’.

Page | 6

Opportunities & Challenges Ahead

There are opportunities and challenges for the current and extended role of our community libraries:

Buildings

? Changing patterns of visitor access to and usage of library services

? Facilities need to be co-located with other local services, creating a genuine community hub

? Buildings may need to be reconfigured or extended

? All designs must reflect the multi-functional nature of the new age library

? Capital budgets and grants, together with ongoing operational funding

Collections

? Physical collections reduced in size to allow for greater learning / training / meeting spaces

? The availability and cost of digital resources

? The balance between the ‘old’ and ‘new’ formats

Staff

? Recruiting staff with new age library skills: IT, community strengthening

? Developing these skills with our existing staff

? Continuous technology training for our staff

? Engaging more community volunteers and services developed with customer involvement

Funding

? The rapidly changing virtual world and technology, and the costs of keeping up to date e.g. RFID, WiFi, eBooks,

etc.

? Upgrading and developing the library management system and associated information and communications

technology infrastructure

? State Government funding (approximately 19%) is not keeping pace with the Member Councils’ contributions

Page | 7

How will we meet these challenges and opportunities? What is the ERLC Way?

We aspire to:

Providing our communities with access to knowledge, experience and ideas

Being the “third” place for our communities

We undertake to:

Provide universal and equitable access to library resources and services

Create opportunities and spaces that will enhance peoples’ lives and community interaction

We value:

Co-operation, partnerships and alliances

Social, cultural, environmental and economic sustainability

Innovation that enhances the opportunities and services for our communities

Service excellence

Teamwork and the contribution made by our staff

How do we approach what we do?

ERLC is committed to happy and satisfied customers. Through a relevant program of services, events and places, ERLC

makes an important contribution to community strengthening and to connecting people.

ERLC partners with Councils, community groups and other organizations to ensure that our communities and visitors

to our region can participate in and enjoy local libraries. Partnerships with Councils reflect the aims and objectives of

individual Council Plans.

Libraries play a vital role in lifelong learning through the provision of facilities, resources, training and programs. ERLC

has a strong philosophical commitment to encourage and support lifelong learning in our communities.

We strive for continuous improvement and innovation that will enhance the experiences of, and services to, our

communities.

What will we do over the next five years?

Based on: our Councils’ profiles, demographics, policies and strategies; the transition of public libraries from

‘Information – Product Based’ to ‘Knowledge Society – Service Based’ outcomes: the following strategies have been

developed.

Page | 8

ACCESS Tasks & Actions Partnerships Success Indicators 2013 2014 2015 2016 2017

Create welcoming comfortable library environments,

through the physical appearance of branches

Make the library accessible to all at all times

A warm welcome when users come to library branches

Develop an accessible, engaging and intuitive web

presence, including social media

Increase active library membership, visitation and usage

and encourage greater access to library membership,

collections and services

Facilitate further access for housebound persons to library

services.

1. Obtain details of Council Asset proposed

maintenance for libraries

2. Agree a program where feasible that

coincides with Corporation

enhancements (self-service, etc.)

3. Pursue Living Libraries and other grants

to maximize refurbishment opportunities

4. Explore options to align library opening

hours/access with community

expectations through:

• Co-location / integration

• Use of technology

5. Ongoing customer service training for

staff

6. Website redevelopment

7. Review membership rules and service

protocols

8. Explore co-memberships and programs

with other organisations e.g. schools,

neighbourhood houses, U3A, etc.

including at least 1 pilot program

9. Explore opportunity with Councils to

make existing and new

ratepayers/householders automatically

library members

10. Explore options beyond current service

e.g. postal service

Councils

State Govt

Federal Govt

Councils

Schools

Neighbourhood

Houses

U3A, etc.

Councils

Aust Post

Vision Australia

� $150,000 ($50K per Council, or greater

amount per Council if not required by a

Member Council) set aside in ERLC

annual budget

� Councils/Corporation agree to apply for

$ for $ grants

� Better planning for library

refurbishments

� Applications lodged when grants

available

� Co-location/integration with Council

services e.g. Rowville, Ringwood,

Montrose

� Board Report on technology/collection

access out of hours

� Customer satisfaction with staff rated

as 8+ in annual survey

� Increased usage (hits, likes, etc.)

� Board Report

� Board Report

� Membership Increases

� Pilot Program agreed and undergoing

testing with at least one Member

Council

� Board Report

� Councils agreeing to provide additional

funding based on merits of proposals

August

Annual

Annual

Annual

Ongoing

8+

+2%

October

+2%

December

Annual

Annual

Annual

Annual

Ongoing

May

8+

+2%

Feb

+2%

Annual

May

Annual

Annual

Annual

Annual

Ongoing

8+

+2%

+2%

Annual

July

Annual

Annual

Annual

Annual

Ongoing

8+

+2%

+2%

Annual

Annual

Annual

Annual

Annual

Annual

Ongoing

8+

+2%

+2%

Annual

Annual

Page | 9

Collections Tasks & Actions Partnerships Success Indicators 2013 2014 2015 2016 2017

Develop:

• a ‘high turnover’ collection

• library collections that reflect community

demographics and respond to community

demand

• and promote relevant local specialist collections

Raise ERLC user awareness of and capacity to search the

‘complete’ collection to which they have access, including

the visible collection, the collection in other ERLC

branches, collections accessible through SWIFT and

eCollections

Explore opportunities to increase user access to major

specialist library collections and databases

Prepare a Board Report on the current collection

for each branch and how the collection responds

to community need & demand

Review the acquisition, collection management

and display practices based on the above report

ERLC Marketing and Communication Plan

Hold discussions with State Library, National

Library and other organisations

Councils

State Govt

Federal Govt

State Library

National Library

SWIFT

� Board Report

� Board Policy

� Board Adoption

� Joint promotions

October

September

Annual Update

Feb

Annual Update

August

August

Annual Update

Annual Update

Annual Update

Annual

Annual Update

Annual Update

Annual Update

Annual

Annual Update

Annual Update

Annual Update

Annual

Programs and Services

Tasks & Actions Partnerships Success Indicators 2013 2014 2015 2016 2017

Increase active engagement with the library through

provision of programs and services that encourage

participation, especially of targeted user/community

groups

Use outreach programs and partnerships to extend the

library’s physical network into places where people live,

work, study, shop and relax.

Develop joint programs (e.g. holidays) with

Member Councils

Promoting the services on offer at the library.

Staff to visit organisations (or inviting them to

visit branch libraries) talking about the range of

materials and services on offer

Councils

Schools

Neighbourhood

Houses

U3A, etc.

� Joint programs &

promotions

� Increased

memberships

� New Visitations

2

20

2

20

2

20

2

20

2

20

Places and Spaces


Assess current usability of spaces in relation to “People &

Places’ Guidelines

Address improvements/opportunities for enhancement of

branch facilities through direct engagement with Council

at a local level

Enhance (wherever possible) the flexibility of library

spaces to accommodate the diverse (and competing)

needs of library users

Enhance the library’s capacity to serve as meeting place

within each community for literary, learning and cultural

activities

Explore options for branches to be multi-function service

points (e.g. borrowing, IT access, café, service

transactions).

Complete audit of existing branches, including

detailed plans of current configuration

Obtain details of Council Asset proposed

maintenance for libraries

Agree a program where feasible that coincides

with Council/Corporation enhancements (self-

service, re carpeting, etc.)

Pursue Living Libraries and other grants to

maximize refurbishment opportunities

Pursue co-location/integration opportunities with

Councils e.g. Rowville, Ringwood, Montrose.

Councils

State Govt

Federal Govt

� Board Report

� $150,000 ($50K per

Council, or greater

amount per Council if

not required by a

Member Council) set

aside in annual

budget

� Corporation in a

position to apply for $

for $ grants

� Better planning for

library refurbishments

� Applications lodged

when grants available

October

August

Annual Update

Annual Update

Annual Update

Annual Update

Page | 10

Service Delivery


Explore options to increase community involvement in

support and delivery of library services (e.g. greater use of

volunteers, Commonwealth work experience schemes)

Increase user access to technology

Leverage the relationship with Council to support

programs and service delivery in targeted areas (e.g.

outreach, marketing, service delivery).

Explore Commonwealth work experience

schemes

Promote ERLC volunteer program

Provide access to:

• WiFi beyond the library,

• loans of/access to eReaders

Develop joint promotional activities with

Councils

Councils

State Govt

Federal Govt

� Work experience placements

Increase in volunteers

� $150K ($50K per Council, or

greater amount per Council if not

required by a Member Council for

building works) set aside in annual

budget

� Extend WiFi coverage to nearby

Council outlets e.g. Croydon

Swimming Pool, Boronia

Basketball Stadium, Yarra

Junction: Upper Yarra Family

Centre

� Councils agreeing to provide

additional operational funding

based on merits of proposals

� Allocate $100K from library

materials budget to acquire

approx. 150 iPads/Tablets for

community use in

branches/outreach services

Articles in each Council’s ratepayer

newsletters, newspaper columns &

rate notices

10

10

August

4

10

10

June

June

July

4

10

10

June

June

4

10

10

July

4

10

10

4

Strategic Capacity


Identified/noted three areas which would be critical to the

ERLC’s success

• Active and ongoing engagement with library users

and non-library users to identify their needs and

expectations of the libraries, collections, programs

and services.

• Enhanced marketing and promotion of the role of,

offerings of and ways to access ERLC’s collections,

programs and services.

• ERLC should continue its industry advocacy and

leadership role within the Victorian public library

sector.

Annual RLC Syndicate Survey

Annual Council Survey

Customer Feedback Forms

Customer Focus Groups

Online survey

Development of an ERLC Marketing and

Communication Plan as a priority

Collaboration and partnerships with

community organisations and other Council

services were thought to provide mechanisms

to support promotion and raise awareness of

library services.

Submission to MAC Review of Victorian Public

Libraries Stage 2

Councils

State Govt

Federal Govt

Schools

Neighbourhood

Houses

U3A, etc.

PLVN

ALIA

MAV

� Completed

� Sessions held

� Annual web survey

� Board Adoption

� Board Submission

August

Continuous

3

1

Sep

May

August

Continuous

3

1

August

Continuous

3

1

August

Continuous

3

1

August

Continuous

3

1

Page | 11

[Providing services on behalf of Knox City, Maroondah City and Yarra Ranges Councils]

Page | 12

Strategic Resource Plan & Key Financial Indicators

The Corporation is required by the Act to prepare a Strategic Resource Plan (SRP) covering both financial and non-

financial resources, and including key financial indicators for at least the next four financial years to support the

Library Plan. In order to provide surety for both the Corporation and Member Councils a SRP has been developed for 5

years.

Plan Development

The Corporation has prepared a Strategic Resource Plan for the five years 2012/2013 to 2016/2017 as part of its

ongoing financial planning to assist in adopting a budget within a longer term framework. The Plan takes the strategic

objectives and strategies as specified in the Library Plan and expresses them in financial terms for the next five years.

The key objective, which underlines the development of the Plan, is financial sustainability in the medium to long

term, whilst still achieving the Corporation’s strategic objectives as specified in the Library Plan. The key financial

objectives, which underpin the SRP, are:

• Maintain existing service levels, some of which will be in new programs.

• Achieve a surplus each year.

• Maintain a capital expenditure program of at least $1.9 million per annum.

• Achieve a balanced budget on a cash basis.

In preparing the SRP, the Corporation has also been mindful of the need to comply with the following Principles of

Sound Financial Management as contained in the Act:

• Prudently manage financial risks relating to debt, assets and liabilities.

• Consider the financial effects of Corporation’s decisions on future generations.

• Provide full, accurate and timely disclosure of financial information.

Financial Resources

The following table summarizes the key financial results for the next five years as set out in the Plan for years

2012/2013 to 2016/2017. Appendix A includes a more detailed analysis of the financial resources to be used over the

five year period.

Strategic Resource Plan Projections

Indicator 2012/13 2013/2014 2014/2015 2015/2016 2016/2017 +/o/-

$’000 $’000 $’000 $’000 $'000

Operating result 23 36 63 118 132 +

Cash and investments 3,538 2,350 2,288 2,306 2,364 o

Cash flow from operations 1,613 1,676 1,803 1,883 1,922 +

Capital works 1,925 1,925 1,925 1,925 1,925 o

Key to Forecast Trend:

+ Forecasts improvement in the Corporation's financial performance/financial position indicator

o Forecasts that the Corporation's financial performance/financial position indicator will be steady

- Forecasts deterioration in the Corporation's financial performance/financial position indicator

Page | 13

The key outcomes of the Plan are as follows:

• Financial Sustainability

Cash and investments are forecast to reduce over the five year period to fund library materials and technology.

• Contributions Strategy (section 10.1)

Council contribution increases 2012/2013 are based on advice from Council Officers; and following years projected at

an ongoing increase of 5%.

• Capital Works Strategy (section 10.2)

Capital expenditure over the five year period will total $9.6 m at an average of $1.9 m spent on library materials and

technology. This allows for some growth in collection size and the acquisition of further technologies.

• Service Delivery Strategy (section 10.3)

Services levels by way of opening hours, events, etc. will be maintained throughout the five year period on the

assumption that: Member Council contributions will increase by 5% for 2012/2013 and following years; self-service is

maintained in all branches; and there is no increase in staffing numbers.

Non-financial resources

In addition to the financial resources to be consumed over the planning period, the Corporation will also need to fund

staffing levels that maintain, and improve, its service levels. The following table summarizes the non-financial

resources for the next five years.

Strategic

Resource Plan Projections

Indicator 2012/13 2013/2014 2014/2015

2015/2016 2016/2017

$’000 $’000 $’000 $’000 $’000

Employee Benefits 8,260 8,508 8,785 9,092

9,433

Superannuation Guarantee

Increase

21 43 90 141

Employee numbers 158 158 158 158 158

Overall increases in employees’ costs have been capped for 2012/2013 at 5.5%, and a maximum increase of 3% for

2013/2014, 3.25% for 2014/2015, 3.5% for 2015/2016 and 3.75% for 2016/2017, (based on a new Enterprise

Agreement yet to be negotiated) which will only be achievable through limiting the casual budget and overall staff.

This level of increase is required to help fund the additional employer superannuation contributions from 2013/2014.

The increase in employees’ costs for Superannuation Guarantee from 2013/2014 is shown in the above Table.

Page | 14

FUNDING STRATEGIES

In developing the Strategic Resource Plan, strategies have been developed for revenue, infrastructure and service

delivery.

Revenue

The 2012/2013 Budget has been developed using preliminary advice from Council Officers as to the Council

contributions for this year. Council increases in total contributions are forecast for the year from 2012/2013 and

following at a rate of 5% per annum. User Charges and Fees will rise where appropriate for the service provided.

Capital Works

A key objective will be to try and maintain or preserve the Corporation’s existing assets at desired condition levels. If

sufficient funds are not allocated to asset preservation then the Corporation’s investment in those assets will reduce,

along with the capacity to deliver services to the community.

The following influences had a significant impact on Capital Works for the 2012/2013 and following years:

• The budgeted Councils’ contributions.

• State Government Grant for 2012/2013 and estimated increases for later years.

• The level of cash and investment reserves to fund future capital expenditure programs.

Service Delivery

The key objectives included in the Corporation’s Strategic Resource Plan (referred to in Section 9) which directly

impact the future service delivery strategy are to maintain existing service levels and to achieve a reasonable

operating result over the five years. The Revenue Strategy refers to contributions increases into the future,

approximating 5% per annum for Member Councils for 2012/2013 and following years.

With these key objectives as a basis, a number of internal and external influences have been identified which will have

a significant impact on the scope and level of services to be provided over the next five years.

The service delivery outcomes measured in financial terms are shown in the following table.

Year

Net

Surplus

(Deficit)

$’000

2013 23

2014 36

2015 63

2016 118

2017 132

Page | 15

Services levels have been maintained throughout the five year period despite a deficit in 2011/2012 and with

operating surpluses forecast the years 2012/2013 to 2016/2017.

Overall increases in employees’ costs have been capped for 2012/2013 at 5.5%, and a maximum increase of 3% for

2013/2014, 3.25% for 2014/2015, 3.5% for 2015/2016 and 3.75% for 2016/2017, (based on a new Enterprise

Agreement yet to be negotiated) which will only be achievable through limiting the casual budget and overall staff.

This level of increase is required to help fund the additional employer superannuation contributions from 2013/2014.

.

Matters that Impact on the Strategies

The general influences affecting all operating revenue and expenditure include the following:

2012/13 2013/2014 2014/2015 2015/2016

2016/2017

% % % %

%

Contribution increases 5 5 5 5 5

Government funding 2.75 2.75 2.00 2.00 2.0

Wages growth 5.5 3.0 3.25 3.5 3.75

Superannuation

Guarantee Increase

.25 .5 1 1.5

Investment Return 5.5 4.0 4.0 4.0 4.0

Given the issues in relation to the State government Grant for 2012 2013, a conservative approach has been taken in

relation to the expected % increase for 2013/2014 (2.75%) and following years (2%).

The same conservative approach has been taken in relation to investment returns over the life of the Strategic

Resource Plan.

Page | 16

Appendices

The following appendices include voluntary and statutory disclosures of information which provide support for the

analysis contained in sections 1 to 11 of this report.

This information has not been included in the main body of the budget report in the interests of clarity and

conciseness. The Corporation has decided that whilst the budget report needs to focus on the important elements of

the budget and provide appropriate analysis, the detail upon which the annual budget is based should be provided in

the interests of open and transparent local government.

The contents of the appendices are summarized below:

Appendix Nature of information

A Budgeted standard statements

B Statutory disclosures

C Capital works program

D Key strategic activities

Eastern Regional Libraries Corporation – Budget 2012/2013

Page | 17

Appendix A

Budgeted Standard Statements

This appendix presents information in regard to the Budgeted Standard Statements. The budget information for the

years 2012/13 to 2016/17 has been extracted from the Strategic Resource Plan.

The appendix includes the following budgeted information:

• Budgeted Standard Income Statement

• Budgeted Standard Balance Sheet

• Budgeted Standard Cash Flow Statement

• Budgeted Standard Capital Works Statement


Page | 18

Budgeted Standard Income Statement

For the five years ending 30 June 2017.

Budgeted Standard Income

Statement

2012/2013 2013/2014 2014/2015 2015/2016 2016/2017

Income

Grants - recurrent 2,440,771 2,507,892 2,570,590 2,659,397 2,751,893

Contributions 9,717,268 10,203,132 10,713,288 11,248,953 11,811,400

User Charges, fees and fines 395,550 375,550 330,550 305,550 305,550

Interest 275,341 250,000 250,000 250,000 200,000

Total Income 12,828,930 13,336,574 13,864,428 14,463,900 15,068,843

Expenses

Employee Benefits 8,260,745 8,508,567 8,785,096 9,092,574 9,433,546

Superannuation Guarantee

Increase

21,271 43,925 90,926 141,503

Contract Payments, Materials

and Services

2,954,882 3,130,181 3,232,201 3,397,191 3,571,010

Depreciation and

Amortisation

1,500,000 1,600,000 1,700,000 1,725,000 1,750,000

Net profit / loss on the

Disposal of Plant &

Equipment

90,000 40,000 40,000 40,000 40,000

Total Expenses 12,805,627 13,300,020 13,801,223 14,345,691 14,936,059

Surplus/(Deficit) for the year 23,303 36,554 63,205 118,209 132,784


Page | 19

Budgeted Standard Balance Sheet


Budgeted Standard Balance Sheet 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017

$ $ $ $ $

CURRENT ASSETS

Cash and Cash Equivalents 3,538,861 3,350,415 3,288,620 3,306,829 3,364,613

Prepayments 70,000 70,000 70,000 70,000 70,000

Receivables 40,000 40,000 40,000 40,000 40,000

TOTAL CURRENT ASSETS 3,648,861 3,460,415 3,398,620 3,416,829 3,474,613

NON-CURRENT ASSETS

Property, Plant and Equipment 5,940,000 6,165,000 6,290,000 6,390,000 6,465,000

Intangible assets

TOTAL NON-CURRENT ASSETS 5,940,000 6,165,000 6,290,000 6,390,000 6,465,000

TOTAL ASSETS 9,588,861 9,625,415 9,688,620 9,806,829 9,939,613

CURRENT LIABILITIES

Payables 449,105 412,408 375,068 337,075 298,417

Employee Benefits 2,039,000 2,074,683 2,110,989 2,147,932 2,185,521

TOTAL CURRENT LIABILITIES 2,488,105 2,487,090 2,486,057 2,485,006 2,483,937

NON-CURRENT LIABILITIES

Employee Benefits 58,000 59,015 60,048 61,099 62,168

TOTAL NON CURRENT LIABILITIES 58,000 59,015 60,048 61,099 62,168

TOTAL LIABILITIES 2,546,105 2,546,105 2,546,105 2,546,105 2,546,105

NET ASSETS 7,042,756 7,079,310 7,142,515 7,260,724 7,393,508

REPRESENTED BY:

Members' Equity based on Initial

Contributions

3,689,000 3,689,000 3,689,000 3,689,000 3,689,000

Accumulated Surplus 3,353,756 3,390,310 3,453,515 3,571,724 3,704,508

EQUITY 7,042,756 7,079,310 7,142,515 7,260,724 7,393,508


Page | 20

Budgeted Standard Cash Flow Statement


Budgeted Standard Cash Flow

Statement

2012/2013 2013/2014 2014/2015 2015/2016 2016/2017

Cash Flows from Operating

Activities

$ $ $ $ $

Receipts

Grants 2,440,771 2,507,892 2,570,590 2,659,397 2,751,893

Contributions 9,717,268 10,203,132 10,713,288 11,248,953 11,811,400

User Charges, fees and fines 395,550 375,550 330,550 305,550 305,550

Interest 275,341 250,000 250,000 250,000 200,000

12,828,930 13,336,574 13,864,428 14,463,900 15,068,843

Payments

Payments to Employees 8,260,745 8,508,567 8,785,096 9,092,574 9,433,546

Superannuation Guarantee Increase 21,271 43,925 90,926 141,503

Payments to Suppliers 2,954,882 3,130,181 3,232,201 3,397,191 3,571,010

11,215,627 11,660,020 12,061,223 12,580,691 13,146,059

Net Cash provided by Operating

Activities

1,613,303 1,676,554 1,803,205 1,883,209 1,922,784

Cash flows from investing activities

Proceeds from the sale of Plant &

Equipment

60,000 60,000 60,000 60,000 60,000

Payments for Plant & Equipment (1,925,000) (1,925,000) (1,925,000) (1,925,000) (1,925,000)

Net Cash used in Investing Activities

(1,865,000) (1,865,000) (1,865,000) (1,865,000) (1,865,000)

Net Increase/(Decrease) in Cash and

Cash Equivalents

(251,697) (188,446) (61,795) 18,209 57,784

Cash and Cash Equivalents at

beginning of the Financial Year

3,790,558 3,538,861 3,350,415 3,288,620 3,306,829

Cash and Cash Equivalents at end of

the Financial Year

3,538,861 3,350,415 3,288,620 3,306,829 3,364,613


Page | 21

Budgeted Standard Capital Works Statement


Budgeted Standard Capital Works

Statement

2012/2013 2013/2014 2014/2015 2015/2016 2016/2017

$ $ $ $ $

Capital Works Areas

Library Materials

Books 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000

Audiovisual Materials 250,000 250,000 250,000 250,000 250,000

e books 125,000 125,000 125,000 125,000 125,000

Plant & Equipment

Motor Vehicles 100,000 100,000 100,000 100,000 100,000

Equipment 250,000 250,000 250,000 250,000 250,000

Total Capital Works 1,925,000 1,925,000 1,925,000 1,925,000 1,925,000

Sources of Funds

Proceeds from Sale of Assets 60,000 60,000 60,000 60,000 60,000

Net Cash Inflows from Operating

Activities

1,613,303 1,676,554 1,803,205 1,883,209 1,922,784

Total Sources of Funds 1,673,303 1,736,554 1,863,205 1,943,209 1,982,784

Net Movement Cash Flows (251,697) (188,446) (61,795) 18,209 57,784

Reconciliation of net movement in property, plant and equipment


2012/2013 2013/2014 2014/2015 2015/2016 2016/2017

$ $ $ $ $


Depreciation 1,500,000 1,600,000 1,700,000 1,725,000 1,750,000

Written Down Value of Assets Sold 150,000 100,000 100,000 100,000 100,000

Net Movement in Property, Plant &

Equipment

275,000 225,000 125,000 100,000 75,000


Page | 22

Appendix B

Statutory disclosures

This appendix presents information required pursuant to the Act and the Regulations to be disclosed in the Council’s

annual budget.

The appendix includes the following budgeted information:

• Borrowings

• Fees and Charges


Page | 23

Statutory disclosures

1. Borrowings

2011/12 2012/13

$ $

New borrowings (other than refinancing) 0 0

Debt redemption 0 0

2. Fees and Charges

2.1 The proposed Fees and Charges to be levied:

Products and Services 2012/ 2013

Overdue Material Per Item Per Day

Up to a maximum of $12 per item – Adult

Up to a maximum of $ 6 per item – Child

$0.30

Lost items System Cost & Processing Fee

Replacement cards $3.00

Printing per page $0.20

Photocopying - Colour (A4) and (A3)

- B&W (A4) and (A3)

$0.60 and $1.40

$0.20 and $0.40

Inter Library Loan (per item)

- other public library services

- non public library

$2.00

$15.00

Book sale - adult fiction (Minimum)

- junior material (Minimum)

- paperbacks (Minimum)

$1.00

$1.00

$0.50

Book clubs per annum $350.00

Library bags $1.50

Faxing

Victoria - per fax (includes multiple pages)

Australia - per minute

Overseas - per minute

Receiving - per page printing

$2.30

$3.40

$5.60

$0.20

Training Internet & Genealogy (each) Variable

Activities - adult

- junior

Variable

Variable

Meeting Room - Boronia

- Rowville

- Belgrave

- Mt Evelyn

- Yarra Junction

As per Councils’ Fees and Charges

Notes: Fees and Charges inclusive of GST, as it applies.

Page | 24

Appendix C

Capital Works Program

This appendix presents a listing of the capital works projects that will be undertaken for the 2012/13 and following

years.


Budgeted Standard Capital

Works Statement

2012/2013 2013/2014 2014/2015 2015/2016 2016/2017

$ $ $ $ $

Capital Works Areas

Library Materials

Books 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000

Audiovisual Materials 250,000 250,000 250,000 250,000 250,000

e books 125,000 125,000 125,000 125,000 125,000

Plant & Equipment

Motor Vehicles 100,000 100,000 100,000 100,000 100,000

Equipment 250,000 250,000 250,000 250,000 250,000


Page | 25

Page | 26

Knox is one of the most populous municipalities in Victoria with almost 154,000 residents living in eleven localities. It is

a community concerned for the welfare of others with residents from 130 different countries who speak 54 languages.

Knox has nearly 28,000 children under 15 years old and 25%+ of residents aged 55 years and older.

Knox is an established municipality combining residential, industrial and commercial areas. There are 58,000 homes and

nearly 14,000 businesses in Knox, including 5,000 home-based businesses.

31% of the resident workforce work in Knox (2006).

Major features of the municipality include major shopping areas at Knox Central Activity Centre in Wantirna South,

Bayswater, Boronia, Ferntree Gully, Mountain Gate, Scoresby Village, and Stud Park in Rowville, with Knox City Shopping

Centre providing a focal point for the city.

The city is well served with recreational facilities including Koomba Park in Wantirna, Lewis Park in Wantirna South,

Chesterfield Farm in Scoresby, the Corhanwarrabul and Monbulk Creek parklands and Lysterfield Park.

A major new development for Knox has been the development of the Knox Regional Sports Park. The 27-hectare site

adjacent to EastLink will become a new home for the State Basketball Centre and Knox regional soccer centre.

Population Forecast

In 2006, the most populous age group in City of Knox was 45-49 year olds, with 11,915 persons. In 2021 the most

populous forecast age group will continue to be 45-49 year olds, with 11,260 persons.

The number of people aged under 15 is forecast to decrease by 1,228 (-4.0%), representing a decline in the proportion

of the population to 17.6%. The number of people aged over 65 is expected to increase by 12,854 (81.5%), and represent

17.2% of the population by 2021.

The age group which is forecast to have the largest proportional increase (relative to its population size) by 2021 is 70-

74 year olds, who are forecast to increase by 125.0% to 7,969 persons.

Page | 27

The City of Maroondah features a balanced blend of more established residential areas along the major transport routes

and railway lines, newer residential pockets in the northern and south-eastern peripheries, light industrial precincts

concentrated within the south-eastern corner, service and retail precincts clustered along the Maroondah Highway

corridor, and a spread of parklands and recreational reserves.

There are just over 103,000 people living in Maroondah, residing in 36,400 households with an average of 2.6 people in

them.

Maroondah's swimming pools, golf courses and leisure centre get more than 1 million visitors each year.

Maroondah has a vast diversity of flora and fauna. There are 13 distinct habitat types within Maroondah and 82 sites

of biological significance which are protected by the Maroondah Planning Scheme. Maroondah is home to 18 mammal

species, 23 butterfly species, 116 bird species and 9 frog species, including the rare Victorian smooth froglet.

There are 21 shopping precincts and 6,000 businesses in Maroondah. The area’s major activity centres are Ringwood

and Croydon and future residential growth will be focused around these centres. With little remaining significant tracts

of land for large-scale residential developments, population growth has slowed in Maroondah over recent years and

future growth will be stimulated by housing consolidation and medium density developments.

Population Forecast

In 2006, the most populous age group in City of Maroondah was 35-39 year olds, with 7,834 persons. In 2021 the most

populous forecast age group will continue to be 35-39 year olds, with 7,951 persons.

The number of people aged under 15 is forecast to increase by 1,106 (5.6%), representing a rise in the proportion of the

population to 17.9%. The number of people aged over 65 is expected to increase by 7,173 (51.6%), and represent 18.2%

of the population by 2021.



Page | 28

The Shire of Yarra Ranges with a population of 145,000 is located on metropolitan Melbourne’s eastern fringe. The Shire

balances a mix of urban and rural communities. There are over 55 suburbs, townships, small communities and rural

areas within the Shire, making it one of the most diverse of any municipality in the State.

Yarra Ranges has a diverse economy of around 10,000 businesses, employing some 35,000 people. Manufacturing is the

most valuable industry in, yielding $2.8 billion in regional output. Other important industries include agriculture

(including wine making), tourism, construction, property and business services and retail trade.

Yarra Ranges has long been recognised as a special place for its natural beauty and diverse habitats. The combination

of national parks, state forests, private gardens, and its location on Melbourne's door step combine to make the area

unique in both natural and cultural amenities.

Some of Victoria's most environmentally important areas are located in the Yarra Ranges and play a significant role in

attracting residents to the area. The mountainous landscapes and Yarra Valley contain significant remnant native

vegetation, much of which is botanically and zoologically significant, providing important habitat for wildlife.

Yarra Ranges can be characterised as a ‘young’ Shire, with a higher than average proportion of the population aged

between 5 and 17 years and more family households than typical across Melbourne. The median age of Shire residents

is 36.6 years.

Population Forecast

In 2006, the most populous age group in Yarra Ranges Council area was 40-44 year olds, with 11,427 persons. In 2021

the most populous forecast age group will be 45-49 year olds, with 10,829 persons.

The number of people aged under 15 is forecast to decrease by 1,371 (-4.5%), representing a decline in the proportion

of the population to 19.0%. The number of people aged over 65 is expected to increase by 11,916 (80.4%), and

represent 17.4% of the population by 2021.



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