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Report of Operations

For the year ended 30 June 2016 Report of Operations 2015-2016

City profile 5Commintments 6Council by numbers 7 The year in review

A message from the Mayor 8A message from the Chief Executive 10

Our council

Our Councillors 12Council staff 14Organisational structure 15Major capital works 16 Financial summary 18 Our performance

Council plan 20Performance 21 Governance, management and other information Governance 36Governance and management checklist 42Statutory information 42Managing risk 41Performance indicators 46 Financial reports and statements 51

Performance statement 110

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WelcomeWarrnambool City Council acknowledges the Traditional Owners of the land in which we live and work, their Elders past and present. Warrnambool City Council is committed to being transparent and accountable in its reporting to the community.The Annual Report 2015-2016 is a primary means of informing the community about the council’s performance, achievements and challenges during the financial year

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City profileWarrnambool municipality covers an area of 120sqkm and is situated in Victoria’s South West, 260km from the state’s capital, Melbourne.It has an estimated residential population of 35,000 and includes the city of Warrnambool and the surrounding towns of Allansford, Woodford and Bushfield.

Warrnambool is the major service centre in the region and provides an extensive range of services which extend well beyond the borders of the Warrnambool municipal boundary.

Employment strengths are in the sectors of health and community, education, food processing, government, retail trade and tourism. Industrial and business activities also occur in the City that support the broader agricultural and other industry value adding activities.

Warrnambool is a highly liveable coastal regional city with a strong track record of steady and sustained population and economic growth.

Over the past decade an additional 3,200 people have chosen to call Warrnambool home, representing an average annual growth rate of 1.1%.

Over the same period the value of building works (residential and commercial) approved for construction in Warrnambool has exceeded $1 billion.

On average, 230 new residential dwellings have been constructed each year since 2005. There are over 2,800 businesses in the city and of these 1,643 are non-

employing / self-employing operators. A further 1,082 are small businesses which employ up to 19 employees. 89 businesses employ between 20-199 staff.

21.3 per cent of the population is aged 15 years and under, the state average is 19.9 per cent.Those aged 65 years and older comprise 16 per cent of the population compared to the Victorian average of 14.2 per cent.

Within Warrnambool, 36.5 per cent of the population own their home with a mortgage, 29 per cent own their homes outright and 28.1 per cent are renting.Warrnambool has a Socio Economic Indexes for Areas (SEIFA) score of 989. Major employment sectors are health care and social assistance, 14.86 per cent; retail trade, 13.77 per cent; manufacturing, 10.12 per cent; and, education and training, 9.21 per cent.

Just under a quarter of Warrnambool’s population is engaged in voluntary work.

Three businesses in our city employ greater than 200 employees.

Warrnambool has a campus of Deakin University and is home to the primary campus of the South West Institute of TAFE.

Mortlake

CamperdownColac

Hamilton

Great South Coast

Dennington

BushfieldWoodford

Allansford

Warrnambool

Port FairyPortland Warrnambool

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Our visionTo be a thriving, culturally rich and inclusive leading regional city.

Our mission Warrnambool City Council will work in collaboration with the community to:• Be a financially sustainable organisation• Make Warrnambool a great place for people to live,

work and visit• Support and encourage creativity and innovation• Create safe, connected and resilient communities that

respect cultural diversity• Strengthen community health and wellbeing• Improve our environmental sustainability• Maintain our strong sense of community pride• Encourage and promote economic development

Our valuesGood GovernanceWe will have open, accessible and accountable governance in touch with the existing and changing needs of our community.Key decisions will be based on engaging with our

community, with decisions made in a transparent and accountable manner. Council will set clear goals and measure results to achieve innovation and improvement.

Fairness, Equity and RespectWe will ensure that all people are treated with dignity, fairness and respect, and that people’s different perspectives are acknowledged. We will ensure all people in our community have equal access to services, facilities and involvement in decision making.

Communication and EngagementWe will deliver accurate, timely and relevant information involving the open exchange of ideas and information with the community.

Innovation and QualityNew and emerging ideas and technologies will be at the forefront of Council thinking to improve our services and facilities, and the health and wellbeing of our community. We will strive for excellence in all that we do and continuously improve our performance and our services to achieve outstanding results.

SustainabilityEnvironmental and financial sustainability will underpin all that we do to maximise opportunities for all people and future generations.

Vibrant democracyPeople’s different perspectives will be respected and vigorous debate encouraged to improve our decision-making.

Warrnambool City Council’s commitments

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Learning to drive Council’s L2P program had 62 participants

Youth participation Youth Services activities recorded 5,442 participants

Supporting local groups34 local clubs and organisations shared in $73,988 through the Community Development Fund

Sporting city Sports grounds were hired for 84 events

Capacity to compete25 individuals shared in assistance grants of $12,350 to help them reach competitions. Of the 25, 10 athletes trav-elled internationally and 15 athletes competed in interstate competitions.

ShowtimeThe Lighthouse Theatre received 63,174 visitors.This equates to a full-capacity audience (575 seats) every 3.4 days. The Lighthouse hosted 122 ticketed performances and 298 conferences, meetings, functions and events. These activities included:• 103 hires of the venue by community groups• 1,019 people engaged in performing arts workshops• 7,440 visits by children of school age• Over 40 concerts by touring musicians

The life aquaticThe aquatic centre AquaZone recorded its highest annual attendance with 240,232 paid visits. This equates to 7.42 visits per resident, significantly higher than the benchmark for similar size aquatic facilities in Australia at 5.60 visits per resident. AquaZone members: 2,813 Children attending swimming lessons: 3,741 Swim visits: 73,482

Drainage210 drainage pits were installed along with5km of piping

Roads15km of road resealed

Paths2.5km of new footpaths were constructed

BridgesTwo new footbridges were installed and two replaced

Inspected158km of footpath was inspected

The year in numbers

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Mayor’s MessageWarrnambool City Council’s annual report measures our achievements against the strategic objectives contained in the 2013-2017 Council Plan. It is the role of council to make decisions that take into account the diverse needs of the community; to provide leadership by establishing strategic objectives and working towards achieving those objectives; to manage the Council’s resources sustainably; to advocate on behalf of the community to other communities and levels of government; to work with other Councils who are part of the Great South Coast Group and to encourage a connected community which participates in a city which alive, thriving and culturally rich.

The past financial year has seen a number of key projects completed and many more approach completion.Council is looking forward to work starting on the City Centre Renewal, which will transform the heart of our city and ensure that it meets the expectations of the community in the 21st century.

In the new landscaping, taxi rank and toilets at the northern end of Gilles Street we can see a new standard and the beginning of what will be a consistent approach to renewing our streets in line with City Centre Design Guidelines adopted by Council in 2015.

Along with the city centre renewal Council has placed great importance on improving pedestrian and cycling connectivity within our city.

Over the past year this has seen the construction of new pedestrian bridges at Daltons Road and Wellington Street. These bridges provide more convenient and safer options for those moving about our city on foot or by bike.

Following negotiations with VicTrack the installation of a footpath across a disused section of railway in Dennington was given the go-ahead. Made possible through Council’s own Small Infrastructure Fund, this work provided a safe, all-abilities path to the Dennington Shopping Centre along a route that the community had been using for some time. In early 2016 Council established the Warrnambool Cycling Reference Group with a view to tapping into the experience of regular cyclists. Already the feedback from this group has helping to inform Council decisions around cycling infrastructure.

Warrnambool City Council encourages residents to live an active life and knows that having sporting facilities which can showcase top level sport is an important part

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of this aim. Council has identified Reid Oval as being the sportsground with potential for improvement that will see it become a leading regional sports facility, particularly for football and cricket. A group of Reid Oval stakeholders is now working together to achieve this goal.

Across the city we have continued to see our residential areas grow and the creation of new residential and industrial land zones has helped contain land prices and make housing more affordable.

Warrnambool is fortunate in having a train line connecting us to Geelong and Melbourne and Council has lobbied to ensure we obtain maximum benefit from this great asset. The Victorian Government’s Regional Network Development Plan announced in 2016 that Warrnambool would have in the short-term a fourth daily weekday return service between Warrnambool and Geelong. This allows Warrnambool travellers to take advantage of the more than 30 services that depart from Geelong for Melbourne.

In the medium to longer term the plan lists future actions including an upgrade of the Warrnambool station and carpark and five return services on five days a week.While our city enjoys low unemployment and provides a great lifestyle the past year has not been without its challenges. In early 2016 Deakin University indicated it was reviewing the future of its Warrnambool campus. Quality tertiary education has been offered in Warrnambool for four decades – including 25 years with a Deakin campus

– and being a city with a university campus is a significant part of our city’s identity. It also attracts talented staff and students to our region, many of whom choose to make Warrnambool their permanent home. The community has responded emphatically to the possibility of losing its university campus and we are confident that Warrnambool will continue to be a regional city offering quality university education.Also of concern was the downturn in the dairy industry which saw a large drop in milk prices offered to Great South Coast dairy farmers. This has been a distressing period for our dairy families and Council acknowledges the efforts of State and Federal governments to support the dairy industry which is such a critical part of our regional economy.

Over the past year we have delivered on many Council Plan commitments and I would like to thank our Councillors for their commitment to Warrnambool City Council and their ongoing efforts on behalf of residents. I also thank businesses, members of community groups and Council officers for all having contributed to improving the liveability and amenity of Warrnambool.

I would also like to acknowledge Cr Michael Neoh, who served as mayor from 2012 until November 2015.

Cr Kylie GastonMayor

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Message from the Chief Executive Officer On behalf of Warrnambool City Council it is a great pleasure to present Council’s Annual Report for the year 2015-2016. The Chief Executive Officer is responsible for:• Establishing and maintaining an appropriate

organisational structure for the Council• Ensuring that the decisions of the Council are

implemented without undue delay• management of the Council’s operations in accordance

with the Council Plan• Developing, adopting and disseminating a code of

conduct for Council staff• Providing timely advice to the Council• Carrying out the Council’s responsibilities as a deemed

employer with respect to Councillors, as deemed workers, which arise under or with respect to the Accident Compensation Act 1985 or the Accident Compensation (WorkCover Insurance) Act 1993.

The top priority of this term of Council has been to renew the city centre.

In recent years Council has undertaken extensive community consultation around planning for the renewal and how business people and residents believe the city centre should look and function.

Council committed $5 million of ratepayer funding towards the project and this financial year the Federal and State governments committed $5 million each to the renewal. The $15 million project will see the transformation of Warrnambool’s retail heart including Liebig Street between Timor Street and Raglan Parade and Koroit Street between Liebig and Kepler streets.

Council also made a key decision on the Port of Warrnambool, which Council had identified as a priority

area. Following extensive community consultation Council elected to improve safety for the launching and retrieval of boats through strategic dredging with the proposed installation of a widened boat ramp made with a porous structure to diffuse wave energy.

Council completed a $4.9 million upgrade of the Warrnambool Regional Airport which has created 21 new fully serviced hangar sites, an automated landing guidance system to the main runway and transforming the grass runway to gravel. The installation of drainage and services is under way at a new industrial site in Warrnambool’s north-east and key north-south links were established with the completion of Aberline and Gateway roads.

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Challenges ahead for the city include maintaining population growth and attracting people to the region Council, through its support of the Great Ocean Road Regional Tourism group is working to enhance Warrnambool’s profile as an attractive Great Ocean Road destination.

We know that annually 2.4 million people make the journey to the Great Ocean Road. This is of enormous value to the Victorian economy because it translates into many overnight stays, particularly overseas visitors who are staying in Melbourne. Council’s challenge is to attract people beyond the central drawcard, the 12 Apostles, to enjoy all that the Warrnambool region has to offer. The announcement of $13 million in State Government funding for the first stage of the Shipwreck Coast Master Plan is a tremendous step forward. I’m proud to acknowledge the great work done by more than 700 staff. The quality of the work has continues to win recognition at state and national level.Over the past year this recognition has included:• Victorian Tourism Awards - Best Event for Fun4Kids

Festival, 2015• Australian Tourism Awards - Best Event for Fun4Kids

Festival, 2015• LG Pro Awards 2016 - Special Project, Oddball Nature

of a Regional Movie• 2015 State Early Years awards for Health and

Wellbeing leadership – Runner-up for Children’s and Family Services and South West Healthcare (South West Healthy Kids Partnership)

• Institute Public Works Engineering Australasia (IPWEA) - 2015 Awards for Excellence, Best Capital Works Project under $1m: North Warrnambool Flood Mitigation Works

• Institute Public Works Engineering Australasia (IPWEA)

- 2015 Awards for Excellence, Young Engineer/Practitioner of the Year: Justin Hinch, Council’s Manager Infrastructure Development and Projects

• Special Commendation in Education category for Sharing Stories of Place - Point Ritchie/Moyjil at the 2015 Victorian Coastal Council awards

• Planning Institute of Australia Women’s Planning Network 2016 Female Achiever of the Year Award, Kirsty Miller, Council’s Manager City Strategy and Development]

• Parks and Leisure Australia, Victoria and Tasmania division, 2016 Use of Technology Award, Connect Warrnambool online community hub

• Australian Sport, Recreation and Play Industry Awards 2016 Marketing and Communication Award for Connect Warrnambool online community hub

Council saw some significant changes at senior personnel with the departures of long serving directors including Director City Infrastructure Peter Robertson, Director City Growth Bill Millard and Director Corporate Strategies Kevin Leddin. I would like to thank Peter, Bill and Kevin for their service to the city over many years. We welcomed new directors Scott Cavanagh as Director City Infrastructure, Andrew Paton as Director City Growth and Peter Utri as Director Corporate Strategies.

I would like to take the opportunity to acknowledge Council, the local community and all Warrnambool City Council staff who have contributed to delivering our Council’s vision and Council Plan.

Bruce AnsonChief Executive Officer

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Our CouncilWarrnambool City Council is an unsubdivided municipality in Victoria’s South West covering 120sqkm.Council’s administration is based at The Civic Centre, 25 Liebig Street, Warrnambool 3280.

CouncillorsThe Council was elected on October 27, 2012. The seven Councillors are the elected representatives of all residents and ratepayers across the municipality. They are responsible for setting the strategic direction for the municipality, policy development, identifying service standards and monitoring performance across the organisation. The Councillors are listed below.

Cr Rob AskewDate elected: November 2008, re-elected October 2012

0428 394 [email protected]

Cr Jacinta ErmacoraDate elected: November 2004, re-elected November 2008 and October 2012


Cr Peter HulinDate elected: November 2008, re-elected October 2012


Cr Brian KelsonDate elected: October 2012


Cr Michael NeohDate elected: November 2004, re-elected November 2008 and October 2012


Cr Peter SycopoulisDate elected: October 2012


Cr Kylie Gaston, MayorDate elected: 27 October 2012


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Our peopleOrganisational StructureCouncil is the governing body that appoints a Chief Executive Officer (CEO). The CEO has responsibility for Council governance and the day to day management of operations in accordance with the strategic directions of the Council Plan. Four Directors and the CEO form the Management Executive Group (MEG) and lead the organisation. Details of the CEO and senior officers reporting directly to the CEO are set out below.

Director Community DevelopmentVikki KingAreas of responsibility:• Community Policy & Planning• Children’s & Family Services• Capacity Access & Inclusion• Recreation & Culture

Director City GrowthAndrew PatonAreas of responsibility:• Economic Development & Investment• City Strategy & Development• Tourism Services• City Renewal

Director City InfrastructureScott CavanaghAreas of responsibility:• Infrastructure Development & Projects• Health & Local Laws• Infrastructure Services

Director Corporate StrategiesPeter UtriAreas of responsibility:• Financial Services• Organisation Development• Revenue & Property• Communications• Information Services• Warrnambool Livestock Exchange

Chief Executive Officer Executive Assistant

Manager Governance Projects and Risk

Director City Growth Director Community Development

Director Corporate Strategies

Director City Infrastructure

Manager City Renewal

Manager City Strategy and Development

Manager Tourism Services

Manager Economic Development &

Investment

Manager Community Planning and Policy

Manager Community Services

Manager Recreation and Culture

Manager Financial Services

Manager Information Services

Manager Organisation Development

Manager Revenue and Property

Manager Infrastructure Development and

Manager Health and Local Laws

Manager Infrastructure Services

Manager Communications

Chief Executive Officer Bruce Anson

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Council staffA summary of the number of full-time equivalent (FTE) Council staff by organisational structure, employment type and gender is set out below.A summary of the number of full time equivalent (FTE) council staff by organisational struc-ture, employment type and gender is set out below.

Employee type/gender

Permanent FT – FPermanent FT – MPermanent PT – FPermanent PT – M

Casual – FCasual - M

Total

Executive Services

1.02.00.01.10.00.04.1

City Growth

16.016.03.213.40.01.249.9

Community Development

17.555.510.390.55.412.2191.4

Corporate Strategies

18.012.03.112.10.00.445.6

City Infrastructure

78.07.011.39.11.10.2

106.8

TotalFTE

130.592.528.0126.26.514.0397.7

A summary of the number of full time equivalent (FTE) staff categorised by employment classification and gender is set out below.

100

90

80

70

60

50

40

30

20

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0Executive Corporate Community City Infrastructure City Growth

Num

ber o

f Sta

ff by

Dire

ctor

ate

(FTE

)

Full Time - MaleFull Time - FemalePart Time - MalePart Time - FemaleCasual - MaleCasual - Female

EmploymentClassificationBand 1Band 2Band 3Band 4Band 5Band 6Band 7Band 8Banding Not ApplicableTOTAL

MaleFTE3.523.236.527.414.317.610.71.030.8165.0

FemaleFTE7.318.351.651.432.517.58.90.045.2232.7

TotalFTE10.841.588.178.846.835.119.61.076.0397.7

A summary of the number of full time equivalent (FTE) staff categorised by employment classification and gender is set out below.

1009080706050403020100

Num

ber o

f Sta

ff (F

TE)

Band 1 Band 2 Band 3 Band 4 Band 5 Band 6 Band 7 Band 8 Banding NotApplicable

Full Time - MaleFull Time - Female

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Equal Opportunity ProgramWarrnambool City Council is committed to eradicating discrimination and ensuring equal opportunity for all staff in relation to employment matters. The Council’s Equal Opportunity Policy aims to promote a positive organisational culture and maintain an environment within which all employees are assessed on the basis of individual merit and provided fair access to opportunities for development and advancement. It is a further objective of this policy to ensure that all employees are provided with a workplace that is free from any form of bullying or harassment.

All new employees are made aware of their responsibilities under the Equal Opportunity Policy during the Council’s Corporate Induction program.

Enterprise bargainingagreementWarrnambool City Council has completed negotiations with staff and union representatives aimed at establishing a new Enterprise Agreement to replace the current agreement which expires in December 2016. An in principal agreement has been reached with the new agreement to be submitted for Fair Work Australia approval in coming months.

Fraud and corruption awareness trainingWarrnambool City Council is committed to preventing fraud and corruption within the organisation. Beginning in February 2016, Council introduced an e-learning program that aims to educate all employees in relation to recognising suspicious activity and to raise awareness of Council’s fraud and corruption control framework. To date 70% of all staff have successfully completed this training.

Health and safetyCouncil has a clear focus on providing a workplace that is safe for all employees and stakeholders. Over the last 12 months we have implemented initiatives to further support management in developing a culture that engenders a safe workplace. This has included the appointment of Health and Safety partners working within the Infrastructure and Community Development directorates. The appointment of an Injury Management Advisor to the Health and Safety team has provided addition support in returning injured staff to work and improving the health and safety management system.

There has been a significant increase in hazard identification and review of hazards across Council, this has coincided with internal auditing of high risk activities and processes. Proactive hazard identification results in

reducing the injury rate by implementing corrective actions before an incident occurs.

Description of operationsWarrnambool City Council provides a diverse range of services which include: the building and maintenance of municipal roads, footpaths, cycling paths and public amenities; waste management; tourism and economic development; Home and Community Care, Meals on Wheels, respite care, recreation services including provision and maintenance of sporting facilities; planning; a live performance theatre, aquatic centre and art gallery.

Council’s vision, strategic objectives and strategies to further improve services and facilities are described in our Council Plan 2013-2017, the 2015-2016 Council budget and the annual report.

Refer to the section on Our Performance for more information about Council services.

The delivery of services, facilities, support and advocacy to achieve the Strategic Objectives is measured by a set of service performance indicators and measures. Council also has a wide range of responsibilities under the Victorian and Australian legislation.

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Major Capital worksMajor capital works which were ongoing, were commenced and/or completed by the Council in 2015-2016 included the following:

Gilles Street taxi rank and toiletsThis $850,000 project created accessible and modern toilets, along with a new taxi rank, at the northern end of Gilles Street.

The work replaced temporary toilets and an older taxi rank that offered minimal protection from the weather. Features of the new development include: energy-efficient lighting, rainwater capture, short-term parallel parking, new grass and shrub plantings and a new footpath.

The footpath is a combination of asphalt and bluestone pavers. The pavers and other bluestone features were sourced from Port Fairy.

Simpson Street drainage tunnelThe Simpson Street tunnel helps drain stormwater from a large area of East Warrnambool.

The stormwater tunnel had deteriorated over the years with erosion creating cavities and weakening the tunnel.The first stage of the project began with pouring a concrete lining along a section of the tunnel to restore the shape and profile of the tunnel and create a hard-wearing, smooth surface allowing for an improved water flow.The second part of the Simpson Street tunnel project will involve the construction of a stormwater retention basin within the Warrnambool Racecourse.

The stormwater basin will be able to contain a large volume of water in the event of a severe storm and has the potential to provide a water supply for the racecourse.Design details for the second stage of the project are being finalised.

The overall cost of the project is $5.4 million

Flagstaff Hill Maritime Village redevelopmentThe $2.95 million redevelopment of Flagstaff Hill Maritime Village (FHMV) saw the consolidation of the Visitor Information Centre and the FHMV reception, creating a more efficient operation.

The restaurant Pippies by the Bay – part of the FHMV complex – also received a refreshed new look.The redevelopment will also include improvements to the wharf area, accessibility and a new sound and laser show.

Council has committed $1million towards the redevelopment while $1.95 million came from the State Government

North Warrnambool Flood Mitigation ProjectWork on the $3.9 million North Warrnambool Flood Mitigation Project entered its final phase – the installation of flood walls.When complete, the North Warrnambool Flood Mitigation

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Project will reduce the risk of flooding to more than 750 properties and in excess of 100 buildingsThe flood walls average 1.1m in height and span a total length of 1200m.

The first two stages of the project involved the recontouring of the floodplain and the construction of an additional culvert under Mortlake Rd.

New surface and better parking for Kepler StKepler Street between Merri and Timor streets was resurfaced in early 2016.

Along with the replacement of 4,000sqm of road paving, centre median parking will be removed with 60 degree angle parking along the kerb reinstated.The $450,000 project included:• bluestone kerb and channel work;

• raised pavement style treatment at each end of the street;

• improvements to bus stops;• rain gardens at the southern end of the street; and,• the installation of tree surrounds.

Jubilee ParkJubilee Park Reserve in Woodford was redeveloped with a new social gathering space, playground and pedestrian bridge.

The work was completed with funding of $374,000 from the State Government funding, $190,000 from the Warrnambool City Council and contributions from the community.

Concept plans for the playground were developed using ideas from students at Woodford Primary School.

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Financial summaryWarrnambool City Council’s financial position is sound. A summary of our performance is outlined below. Detailed information relating to Council’s financial performance is included with the financial statements and performance statement sections of this report.Operating positionCouncil achieved a surplus of $12.04 million in 2015–16. This surplus is $4.1 million more than the prior year which is mainly due to higher levels of gifted assets through developer activities. The adjusted underlying surplus of council, after removing non-recurrent capital grants, cash capital contributions, non-monetary capital contributions, profit/loss on sale of equipment and major expensed capital works, is a surplus of $1.11 million or 1.7% when compared to adjusted underlying revenue. This compares favourably to the expected target of >0%. Sustaining an adjusted underlying surplus is a critical financial strategy that provides capacity to renew the $647 million of community assets under council’s control.

2.5%

2.0%

1.5%

1.0%

0.5%

0.0%

-0.5%2012/13 2013/14 2014/15 2015/16

Adjus

ted un

derly

ing re

sult r

atio

%

LiquidityThe working capital ratio has reduced from 137.7% to 125.3% mainly due to completing a larger proportion of our capital works program. The working capital ratio which assesses Council’s ability to meet current commitments is calculated by measuring Council’s current assets as a percentage of current liabilities. Council’s result of 125.3% is an indicator of satisfactory financial position and within the expected target band of 100% to 200%.

2012/13 2013/14 2014/15 2015/16

180.0%

160.0%

140.0%

120.0%

100.0%

80.0%

60.0%

40.0%

20.0%

0.0%

Wor

king

capit

al ra

tio%

ObligationsCouncil aims to ensure that it is able to maintain its infrastructure assets at the expected levels, while at the same time continuing to deliver the services needed by the community. To bridge the infrastructure gap, council invested $8.23 million in renewal works during the 2015-16 year which was an increase on the $7.40 million spent in 2014/15. Council’s asset renewal ratio which is measured by comparing asset renewal expenditure to depreciation was 81.0%. At the end of the 2015-16 year council’s debt ratio which is measured by comparing interest-bearing loans and borrowings to rate revenue was 29.9% which was within the expected target band of 20%-60%.

35.0%

34.0%

33.0%

32.0%

31.0%

30.0%

29.0%

28.0%

27.0%2012/13 2013/14 2014/15 2015/16

Loan

s and

bor

rowi

ngs r

atio%

Stability and efficiencyCouncil raises a wide range of revenues including rates, user fees, fines, grants and contributions. Council’s rates concentration which compares rate revenue to adjusted underlying revenue was 49.6% for the 2015-16 year which is within the expected target band of 40%-60%. This is also consistent with prior years. Council’s average residential rate per residential assessment of $1,724 is comparable to other Regional Cities.

50.0%

49.0%

48.0%

47.0%

46.0%

45.0%

44.0%

Rate

s con

cent

ratio

n ra

tio%

2012/13 2013/14 2014/15 2015/16

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Our performancePlanning and Accountability FrameworkThe Strategic Resource Plan, included in the Council Plan, is a rolling four year plan that outlines the financial and non-financial resources that Council requires to achieve the strategic objectives described in the Council Plan. The Annual Budget is then framed within the Strategic Resource Plan, taking into account the services and initiatives included in the Annual Budget which contribute to achieving the strategic objectives specified in the Council Plan. The audited financial statements then provide the necessary accountability. The diagram below depicts the planning and accountability framework that applies to local government in Victoria.

Time horizon Planning Reporting TimingMedium

Short Term

Stakeholderand

community engagement

Coucil planStrategic objectivesStrategiesStrategic indicators

Strategic resource planFinancial statementsStatements ofnon-financial resources

BudgetSetvices and initiativesServices outcome indicatorsMajor inotoativesFinancial statements

Annual ReportReport of operationsFinancial statementsPerdformance statement

Jan-Jun

Feb-Jun

Mar-Jun

Jul-Sep

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Council PlanThe Council Plan 2013-17 includes strategic objectives, strategies for achieving these for the four year period, strategic indicators for monitoring achievement of the strategic objectives and a strategic resource plan. The following are the four strategic objectives as detailed in the Council Plan.

1. A Leading Regional CityWe will strengthen our regional role through local, regional, national and international partnerships and develop opportunities for businesses to compete on the world stage. We will advocate strongly for improved services that make living in a regional city even more attractive.

2. A Sustainable CityOur sustainable city will be financially secure and environmentally progressive, with improved transport options and vibrant recreation spaces. We will have well maintained assets, some of which will help preserve our pristine environment. While protection of the environment will always be a significant issue, environmental sustainability will be balanced with financial viability of our Council.

3. A Liveable CityWe will be innovative in our approach to improve people’s health and wellbeing; we will provide opportunities for our youth and increase volunteering in our community. We will also support and encourage our communities to strengthen our city’s artistic, sporting and recreation culture.

4. A City of Growth We will work with partners to provide affordable housing, industrial development, retail opportunity and economic prosperity. We will be innovative, creative and positive as we develop our city using new and exciting technologies that enhance our physical and natural assets.

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1.01 Govern as a well-planned, researched, accountable strategic and sustainable Council1.01.01 Strategic indicator: ensure statutory compliance with the Local Government Act by delivering all actions in Council’s compliance checklist.

1.01.02 Deliver strategic outcomes as outlined in the Council Plan 2013-2017.

1.01.03 Achieve a low risk financial sustainability rating by the Victorian Auditor-General.

1.02 Advocate for the city and the Great South Coast region.1.02.01 Recognise the Great South Coast Regional Plan and its cross-over with the Council Plan and focus on advocacy efforts accordingly.

1.02.02 Develop and implement an Advocacy Plan for Warrnambool.

1.03 Enhance community engagement and transparency in Council activities

100%

100%

100%

100%

100%

Regular monitoring of the checklist to ensure compliance with governance requirements of the Local Government Act.

Regular reporting of Council Plan strategic indicators to executive and Council.

Council has achieved a low risk financial sustainability rating.

The Great South Coast Regional Plan has been formally launched. This plan recognises Warrnambool’s key role as the regional centre of the Great South Coast.

Council’s Projects and Opportunities document has been released and updated.

Strategic Objective 1: A Leading Regional CityResult CommentsStrategic Indicator/measure

PerformanceCouncil’s performance for 2015-2016 has been reported against each strategic objective to demonstrate how council is performing in achieving the 2013-17 Council Plan. Performance has been measured as follows:• Results achieved in relation to the strategic indicators in the council plan• Progress in relation to the major initiatives identified in the budget• Services funded in the budget and the persons or sections of the community who are provided those services• Results against the prescribed service performance indicators and measures.

The following statement reviews the performance of council against the Council Plan including results achieved in relation to the strategic indicators included in the Council Plan

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1.03.01 Ensure community engagement and communication initiatives provide a range of options for community involvement.

1.04 Deliver efficient and effective Council services.1.04.01 Provide excellent customer service and implement the Customer Services Strategy and Charter.

1.04.02 Support staff to be innovative and efficient in the delivery of services and consider collaborative and resource sharing opportunities.

1.04.03 Implement the Annual Service Review program and Continuous Improvement principles.

1.04.04 Consistent review of strategic risk in Council decision-making.

1.04.05 Utilise technological advances to improve service delivery and recognise staff innovations and input into new ideas and change processes.

1.04.06 Implement and promote environmentally sustainable practices.

1.05 Manage our resources responsibly1.05.01 Implement an accountable, sustainable budget and financial strategy.

1.05.02 Implement processes to ensure Council’s research, partnerships and advocacy activities maximise grant funding opportunities to achieve maximum outcomes for the Warrnambool community.

1.05.03 Implement strategies that ensure Council can attract and retain suitably qualified and experienced staff.

1.05.04 Promote an open and inclusive workplace culture where individuals are supported to reach their potential.

100%

100%

100%

40%

100%

100%

100%

100%

100%

90%

100%

A range of options have been used to engage the community including Council’s dedicated engagement website.

Council is following up on an organisation-wide service review.

Examples of collaborative and resource-sharing opportunities include a number of cross-organisational working parties and external partnerships covering projects such as Tech One implementation, procurement, family violence, MAV Asset Step Program, development control, capital works, road safety, emergency management, risk.

Draft Service Review Framework prepared. Service Planning Project commenced. Innovation and efficiency plan developed for rollout in late 2015. LEAN management training completed. Best value and continuous improvement principles included in each of these initiatives.

Annual review of Council’s strategic risks complete.

Tech One software rollout continues while innovation program has been launched.

Ongoing. Sustainability introduced through programs including Smart Living, Sustain the Bool and Smart Buildings.

Council adopted the 2015-2016 Annual Budget and accompanying Strategic Resource Plan in June, 2015.

Major funding outcomes over 2015-2016 included $5 million from the Federal Government and $5 million from the State Government for the City Centre Renewal.

Implementation of the TechnologyOne talent management module is on schedule and will improve staff engagement and connection with the organisation. Program implemented at Council Depot to boost staff engagement.

Enterprise Agreement includes management and staff commitment to supportive workplace culture – with provisions on health and wellbeing, flexible work arrangements, family violence, staff development and employee recognition.

23

1.05.05 Comply with the requirements of Council’s Asset Management Plan.

1.06 Foster regional collaboration and coordination to improve social, economic and health outcomes for residents living across the Great South Coast.1.06.01 Strengthen Council’s contribution to Great South Coast initiatives and projects.

1.06.02 Support, advocate and contribute to the Great South Coast regional plan.

1.06.03 Improve service co-ordination across the region.

100%

100%

100%

100%

Renewal programs completed.

Council continues to be represented at Great South Coast board level and across all four pillars identified in the Great South Coast Regional Plan.

Council is active in reviewing and advancing the regional plan.

Partnership established with Corangamite Shire Council around road resealing program.

The following statement reviews the progress of Council in relation to major initiatives identified in the 2015-2016 budget

A Leading Regional City – major initiatives

Expand the range of e-business services available for Councils customers

Develop and implement an efficiency and innovation program within Council

Implement a system to audio record all ordinary Council meetings.

Progress

Number of Council services are able to be paid online via a portal that interacts with Council’s IT system.

Program launched early 2016

Audio recording and online availability of recording began in August 2015.

Service provision costsThe following statement provides information in relation to the services funded in the 2015-2016 budget and the persons or sections of the community who are provided the service.

A Leading Regional City - service

Elected Council

Governance and Risk

Description

Elected Council governs our city in partnership with and on behalf of our community and facilitates participation of all people in civic life. Also includes contributions made to community groups and organisations.

Responsible for supporting good governance within Council and implementing the Corporate Risk Management Framework, managing Councils insurance portfolio and providing internal support on insurance maters to council officers.

Net costActual BudgetVariance $000

918723(195)

56460137

24

Executive services

Revenue and Customer Service

Information Services

Organisation Development

Corporate and Financial Services

Asset maintenance

Infrastructure Services

Depreciation

Manages and facilitates the Council governance service, implementation of Council decisions and policies and compliance with the legislative requirements. Also includes media & marketing.

Provides a complete service in revenue collection, property management and a customer interface for various service units and a wide range of transactions. Includes contract valuation service.

Enables Council staff to have access to the information they require to efficiently perform their functions. Includes software support, licensing and lease commitments.

This service promotes and implements positive HR strategies to assist staff reach their full potential and, at the same time be highly productive in delivering Council’s services to the community. Includes recruitment, staff inductions and training.

Provides corporate support to Council and all divisions/branches in meeting organisational goals and objectives and includes banking and treasury functions, loan interest, audit, grants commission, insurances, overhead costs including utilities.

This service prepares long term maintenance management programs for Council’s property assets in an integrated and prioritised manner in order to optimise their strategic value and service potential. These include buildings, pavilions, roads, footpaths and tracks and drainage.

This service prepares and conducts capital works and maintenance planning for Council’s main civil infrastructure assets in an integrated and prioritised manner in order to optimise their strategic value and service potential. These include roads, laneways, car parks, foot/bike paths, drains and bridges.

Depreciation is the allocation of expenditure write down on all of Council’s assets over there useful lives.

73978142

929920(9)

2,0251,974(52)

59063343

285(1567(1,851)

1,5901,544(46)

3,8813,752(130)

10,16610,000(166)

25


2.01 Aim to be a leading recycler and environmentally sustainable organisation.2.01.01 Implement purchasing programs and retrofitting buildings for sustainable energy as outlined in Council’s Climate Change Action Plan.

2.01.02 Continue to improve staff knowledge and awareness of sustainability initiatives that reduce Council’s carbon footprint through Council’s Green Environment Team.

2.01.03 Implement works that protect our natural environment and biodiversity.

2.01.04 Work in partnership with local businesses, organisations and the community to promote and implement environmentally sustainable initiatives.

2.02 Protect, enhance and improve access to our coastalreserves and waterways.2.02.01 Adopt and implement key initiatives from the Coastal Management Plan and Vegetation Management Plan.

2.02.02 Undertake programs that enhance the health of our rivers and wetland systems.

2.02.03 Review the combined needs of all users of Lady Bay including safer boating facilities and provide for a sustainable future.

2.03 Promote sustainable transport systems.2.03.01 Implement key actions from Council’s Sustainable Transport Strategy.

2.03.02 Pursue funding to implement key actions relating to sustainable transport as outlined in the City Centre Revitalisation Plan including rail, bus, cycling and trails initiatives.

100%

100%

100%

100%

100%

90%

100%

100%

100%

Actions include installation of windows below mezzanine at the Gymnastics Centre and internal painting of walls.LED lighting upgrades, sensor switches in Civic Centre and the stadium.

The Green Environment Team continues to fund initiatives through its GET grants scheme.

Council has a pest animal management program and where possible implements sustainable measures in asset renewal.

Sustainability projects have received funding through the Sustainability and Environment stream of the Community Development Fund.

Plan adopted by Council. Local Coastal Hazard As-sessment to be undertaken with funding from the State Government Climate Change Fund.

Council continues to work with environment groups MAD for the Merri, Warrnambool Coastcare Landcare and the Basalt to Bay Landcare group.

Lady Bay stakeholders contributed to proposal for safer boat launching and retrieval at Lady Bay.

Number of road safety initiatives delivered including pe-destrian bridges, shared pathways, pedestrian crossings and refuges and sharrow markings for cyclists.

Total of $15 million allocated towards the City Centre Re-newal with the design to improve amenity for pedestrians and cyclists.

Result CommentsStrategic Indicator/measureStrategic Objective 2: A Sustainable City

26

2.03.03 Advocate for renewal of the Warrnambool Railway Precinct to facilitateimproved traffic flow, parking and accessibility and implement actions from theRailway Station Precinct Plan.

2.04 Create natural and open space environments in Warrnambool.2.04.01 Adopt and implement key recommendations of the Open Space Strategy for Warrnambool.

2.04.02 Ensure new growth areas in Warrnambool cater effectively for the public open space needs of residents in accordance with growth area structure plans and the Warrnambool Open Space Strategy.

2.04.03 Improve accessibility to Warrnambool’s parks and open spaces by improving linkages, trails etc. and ensuring adequate infrastructure in local neighbourhoods in accordance with the Warrnambool Open Space Strategy.

2.05 Increase access to sustainability initiatives for the community and Council.2.05.01 Promote and facilitate opportunities for the community to take advantage of National, State and local environmental initiatives.

2.05.02 Seek the support of appropriate agencies to ensure the Warrnambool community has access to contemporary and innovative sustainability programs

2.06 Balance financial viability with environmental sustainability.2.06.01 Implement plans and strategies that improve Warrnambool’s environmental sustainability and achieve efficiency gains.

2.07 Manage Council assets in a sustainable manner.2.07.01 Review and update Council’s renewal funding model to ensure Council adequately funds asset replacement and maintenance while considering Council’s risks.

50%

100%

100%

100%

100%

100%

80%

100%

MoU with VicTrack to agree on principles of future use of site is under development.

Implementation occurring when resources permit.

Open Space Strategy embedded into the Warrnambool Planning Scheme.

Council’s Small Infrastructure Fund allows for the imple-mentation of linkages outlined in the Open Space Strategy.

Ongoing. Council continues to promote national and State funding opportunities for the community.

A review of the Environmental Sustainability Strategy is commencing.

Fleet renewal program updated.

27

The following statement reviews the progress of council in relation to major initiatives identified in the 2015-2016 budget.

Sustainable City major initiatives

Support and promote Seal the Loop bins and support the community to maintain them.

Implement dune stabilisation and rehabilitation between Granny’s Grave and the Flume.

Prioritise and implement Council Small Infrastructure projects to improve linkages within the municipality.

ProgressNew units with new designs installed recently and will be monitored for effectiveness.

Ongoing inspection and remedial work carried out when required.

Allocations through the Small Infrastructure Fund measured against criteria and funds awarded.

The following statement provides information in relation to the services funded in the 2015-2016 budget and the people or sections of the community who are provided the service.

Sustainable City service

Environmental management

Waste management and street cleaning

Parks and Gardens

Description

This service develops environmental policy, coordinates and implements environmental projects and works with other services to improve Council’s environmental performance.

This service provides kerbside rubbish collections of garbage, and recycling waste from all households and some commercial properties in Council. It also provides street cleaning (14/15 only), leaf collection and street litter bins throughout Council.

This service covers a range of areas such as tree pruning, planting, removal, planning and street tree strategies, management of conservation and parkland areas, creeks and other areas of environmental significance. Parks Management provides management and implementation of open space strategies and maintenance programs.


44649145

2,5272,652126

3,4113,399(12)

28

The following statement reviews the performance of council against the Council Plan including results achieved in relation to the strategic indicators included in the Council Plan.

Strategic Indicator/measure

3.01 Improve community health, wellbeing and safety.3.01.01 Work in partnership with others across the Great South Coast to address the significant health and wellbeing issues that impact on our communities

3.01.02 Work in partnership with the local community to address the significant health and wellbeing issues that impact the Warrnambool community as outlined in the Warrnambool Health and Wellbeing Plan 2013 - 2017.

3.01.03 Implement the Municipal Road Safety Strategy.

3.01.04 Implement the Municipal Fire Prevention Plan.

3.01.05 Maintain a contemporary Municipal Emergency Management Plan.

3.01.06 Participate in regional community safety initiatives.

3.02 Develop and support sport and recreation activities to promote healthy lifestyles and community wellbeing.3.02.01 Increase participation in sport and recreation programs.

3.02.02 Implement initiatives and review the Warrnambool Recreation Plan 2007 – 2017.

3.02.03 Develop a Strategic Plan for the future use of Reid Oval

3.03 Develop and support cultural activities that provide opportunities to celebrate, engage and participate in creative and artistic endeavours.3.03.01 Increase participation in Council’s cultural programs.

Strategic Objective 3: A Liveable CityResult

100%

100%

100%

100%

75%

100%

100%

100%

100%

100%

Comments

Collaborative relationships in place including Beyond the Bell group addressing education attainment.

Implementation of the Health and Wellbeing Plan initiatives continues.

Blackspot locations identified and funding applications submitted to VicRoads.

Updated plan adopted.

Draft plan being developed by the SES and will be reviewed by the Municipal Emergency Management Plan Committee.

Partnerships established with Victoria Police and VicRoads.

Implementing AquaZone Access and Inclusion Report.

Jubilee Park Woodford infrastructure completed.

Plan progressing.

The Lighthouse Theatre and Warrnambool Art Gallery continue to provide a range of opportunities for the community to engage in cultural programs.

29

3.03.02 Adopt and implement Council’s Cultural Development Plan.

3.03.03 Strengthen partnerships and support cultural initiatives of the Warrnambool community.

3.04 Invest in and create opportunities for children and young people to reach their potential and participate fully in society.3.04.01 Strengthen engagement of young people and provide support to families as part of Council processes and initiatives.

3.04.02 Implement and review Council’s Municipal Early Years Plan.

3.04.03 Adopt and implement recommendations from Youth Services Review.

3.05 Take the next steps to improving the quality of publiclibrary services in Warrnambool.3.05.01 Advocate for a new joint use library and learning centre for Warrnambool.

3.06 Deliver high quality community services that strengthen client health and wellbeing.3.06.01 Achieve external accreditation in all Community Services areas against relevant legislation and industry standards.

3.07 Promote an inclusive, connected, diverse and resilientcommunity.3.07.01 Celebrate volunteer participation throughout the Warrnambool community.

3.07.02 Address the high levels of family violence within our community by promoting improved gender equity in aspects of community life.

100%

100%

100%

100%

100%

80%

100%

100%

100%

Council continues to engage with the Creative Warrnambool Network.

Council is working with a range of organisations to support the provision of cultural activities and initiatives in the city.

Beyond the Bell local action group continues to meet monthly.

The plan was completed and reported to Council in early 2013.

An implementation plan for the Youth Services Review was developed and work is in progress on enacting the plan.

Council is continuing to work with South West TAFE to advocate on behalf of the project.

Preparing for transition to National Disability Insurance Scheme.

Promotion of Volunteer of the Month awards, recognition and thankyou event for volunteers in National Volunteer Week. Volunteering website now located in Connect Warrnambool website.

Council implemented Take A Stand training for staff.

30

3.07.03 Develop a more inclusive approach to community planning and development that encompasses community accessibility; positive ageing; cultural diversity; and, people and places.

3.08 Ensure community, recreation and cultural services and facilities are responsive to changing community needs andexpectations.3.08.01 Undertake comprehensive reviews of current Community Services to ensure quality and efficiency.

3.08.02 Review strategy for open space planning.

3.09 Support events that deliver economic, social, environmental and cultural outcomes for the community.3.09.01 Renew Council’s strategic approach to events.

Building capacity of organisations to include people with a disability.

HACC services reviewed.

Open Space Strategy recommendations being implemented.

New approach has seen the introduction of the Surf Life Saving Junior Championships and the Warrnambool Gift.

100%

100%

100%

100%

The following statement reviews the progress of council in relation to major initiatives identified in the 2015-2016 budget.

Liveable City major initiativesComplete a master plan for the Lake Pertobe precinct incorporating foreshore parking

Develop a future strategic plan for the Reid Oval

Undertake a review of current HACC services to ensure that they can effectively transition to theCommonwealth.

Complete the East Park Project

ProgressMaster plan under development.

Development Plan for Reid Oval drafted.

Review completed.

Planning underway

31

The following statement provides information in relation to the services funded in the 2015-2016 budget and the people or sections of the community who are provided the service

Liveable City Service

Community Support Services

Aged Services

Family Services

Art and Culture

Library Services

Recreation

Leisure Centres

Regulatory Services

Health Services

Festivals and Events Group

Description

Government funded programs aimed at improving community participation, rural access programs and facilitation of migration to the South West and volunteer programs.

This area provides a range of services including meals on wheels, personal care, respite, home maintenance, home care, adult day care and senior citizens programs.

This service provides family oriented support services including pre-schools, maternal & child health, child care, counselling & support, youth services, immunization, family day care.

Provision of high-quality venues where people can see, present and explore the arts, ideas and events provided at the Warrnambool Art Gallery and Lighthouse Theatre.

Provision of quality library and information services to the community.

Provision of sport, recreation and cultural facilities, service and programs in response to identified community need and to provide information and advice to clubs and organisations involved in these areas.

The Warrnambool Stadium and Aquazone are premier indoor community leisure facilities in south-west Victoria, providing equitable and affordable access to a wide range of aquatic and fitness activities.

Local laws enforcement including parking fees and fines, public safety, animal management and traffic control.

Administrations of legislative requirements pertaining to public health, immunisation and food premises.

Delivers a range of promotions, festivals and events including the nationally acclaimed Fun4Kids festival along with attracting events to the city to deliver economic benefits.


48535

537762224

820606(214)

769665(104)

786782(4)

30432319

491411(80)

(939)(896)43

49855961

1,1201,142

22

32


Strategic Indicator/measure

4.01 Encourage creativity and innovation in urban design and development.4.01.01 Promote and deliver sustainable design workshops to the community.

4.01.02 Promote the revised Warrnambool City Council Statutory Building service.

4.01.03 Promote city renewal through building projects which are innovative and add to diversity of uses.

4.01.04 Complete and implement the Warrnambool Heritage Gap Study and promote heritage developments.

4.02 Invest in planning and infrastructure for growth areas.4.02.01Deliver roads, drainage and community infrastructure commitments as outlined in structure plans for growth areas.

4.02.02 Ensure infrastructure development, renewal and maintenance plans address current and forecast community needs.

4.03 Support and promote economic development in Warrnambool with a focus on job creation and investment.4.03.01 Engage strongly with local key industries and the small business sector to support their long termsustainability.

4.03.02 Work with regional agricultural industries and their representative agencies to assist regional productivity increases.

Result

90%

100%

100%

100%

100%

100%

100%

100%

Comments

In development and will be reviewed.

Ongoing via website; Toolbox Talk Nights occur at least four times annually.

Gilles Street redevelopment includes taxi rank and toilets offering improved amenity and landscaping.

Amendment C73 (Heritage Individual Buildings) approved by Planning Minister.

North Dennington Development Plan prepared and endorsed.

All growth area development is as a result of extensive structure planning, which takes account of future needs of residents in these areas. Certainty in infrastructure is through either an adopted Developer Contribution Plan or via agreement between developers and Council through a Section 173 Agreement. Excellent progress in finalising planning outcomes for infrastructure is occurring in each of Warrnambool’s growth areas.

Key business support events such as Customer Service Awards, education, workshops, the Business Festival, Business Excellence Awards, visitation programs and Club Wednesday networking are either at advanced planning or well under way.

Council was represented at the Project Management Committee to develop the next stage of the Western Victorian Dairy Strategy. Council has assisted the Great South Coast develop its funding submission to support a Regional Food and Fibre Plan.

Strategic Objective 4: A City of Growth

33

4.03.03 Promote Warrnambool’s key economic precincts to potential investors.

4.03.04 Deliver skilled migration and jobs initiatives that assist filling regional job vacancies.

4.03.05 Seek alliances that improve our city’s connection to the latest available communication technologies.

4.03.06 Pursue funding to implement Council’s Development and Investment Plan for the Warrnambool Regional Airport

4.03.07 Create an economic strategy in partnership with industry that builds on Warrnambool’s key strengths and drivers.

4.03.08 Work with Great Ocean Road Regional Tourism to implement regional priorities and local destination action plans.

4.04 Manage a viable port facility.4.04.01 Identify options to provide safer boating and harbour facilities at the Port of Warrnambool, to maximise the significant tourism and commercial potential of the harbour.

4.04.02 Identify funding options to implement improvements to port facilities in partnership with government.

4.05 Deliver leading edge city planning services to the Warrnambool community.4.05.01 Implement key recommendations of the Planning Scheme Rewrite Project.

4.05.02 Complete infrastructure agreements and development plans for the North East Warrnambool growth area.

4.05.03 Undertake continuous improvement of the City Development Toolkit and internal processes to improve statutory planning process.

4.05.04 Complete review and rezoning of North Dennington growth area.

4.05.05 Initiate monitoring and control systems for infrastructure works in growth areas as strategic planning is completed.

4.05.06 Complete City Centre Revitalisation Plan and growth area planning and confirm Warrnambool’s urban growth boundary.

100%

75%

100%

100%

100%

60%

100%

30%

100%

100%

70%

100%

100%

100%

City Wide Housing Strategy was adopted in December 2013, this outlines the availability of residential land. Council’s Industrial Land Use Strategy is being implemented via Horne Road development plan process.

Warrnambool City Council continues to be the government gazetted certifying body assessment service for the six Great South Coast municipalities.

NBN being rolled out in Warrnambool.

Funding secured.

Airport Aviation Park completed, advocacy for further development under way.

Project group established by GORRT.

Preferred development option identified by Council.

Design and business case being prepared for funding application.

Planning scheme rewrite on exhibition.

All North East growth area agreements are complete.

Procedures being finalised.

Development plan endorsed by Council.

Regular reporting to the Development Control Group occurs.

Liebig Streetscape Plan adopted.

34

4.06 Create a thriving and culturally rich City Centre supported by secondary retail precincts.4.06.01 Prioritise and implement the City Centre Revitalisation Plan.

4.06.02 Adopt a car parking strategy as an adjunct to the City Centre Revitalisation Plan.

4.06.03 Facilitate public and private investment in the Warrnambool commercial zones.

4.06.04 Grow the retail industry in Warrnambool through expansion in neighbourhood activity centres, convenience centres and retail stores in the city.

4.06.05 Improve pedestrian safety for all ages and abilities in the city, particularly the CBD and core retail precincts.

Funding secured from State and Federal governments to implement work

Strategy adopted by Council in October 2015.

Implementation of City Centre Renewal a key to achieving public and private investment.

Commercial zones and City Centre Renewal will assist expansion. Investment portal under development.

Liebig Streetscape Plan principle includes creating a safe pedestrian environment in Liebig Street.

100%

100%

100%

100%

100%

The following statement reviews the progress of Council in relation to major initiatives identified in the 2015-2016 budget.

City of Growth major initiativesFinalise designs for the upgrade of Gilles Street landscape inclusive of taxi rank, public toilet and landscaping elements and undertake construction of the new amenities facility.

Adopt amendment C73 to implement Stage 3b of the Heritage Gap Study

Implement Stage 1 of the Simpson Street drainage project

Develop an investment prospectus to encourage investment within the City Centre.

ProgressConstruction complete.

Approved by Planning Minister.

Work commenced.

Under development.

35

The following statement provides information in relation to the services funded in the 2015-2016 budget and the people or sections of the community who are provided the service.

Service

Statutory Building Services

City Strategy and Development

Warrnambool Livestock Exchange

Holiday Parks

Flagstaff Hill Maritime Village

Business Support

Warrnambool Airport

Port of Warrnambool

Description

This service provides statutory building services to the Council community including processing of building permits.

This service prepares and processes amendments to the Council Planning Scheme. This service processes statutory planning applications, provides advice and makes decisions about development proposals which require a planning permit, as well as representing Council at the Victorian Civil and Administrative Tribunal where necessary. It monitors the Council’s Planning Scheme, prepares major policy documents and processes amendments to the Council Planning Scheme.

Provides a regional livestock marketing centre that meets the needs of the stock agents, buyers and producers.

Provides affordable holiday accommodation that is modern, clean and well maintained in a family orientation atmosphere.

A major regional tourist attraction that includes a recreated heritage village that displays the maritime history of the region and features the “Shipwrecked” Sound & Light laser show.

Includes the industry and business support, research and statistical analysis and project development which underpin economic development.

This service provides a regional Airport that meets the needs of users and operates as a viable commercial enterprise to the benefit of the region.

This service aims to maintain a viable port facility.

Net costActual Budget Variance $000

19020212

1,002980(22)

(472)(422)50

(1,187)(1,059)

128

458450(8)

700851151

127126(1)

(5)(4)1

36

Council GovernanceWarrnambool City Council is responsible for the stewardship of the City, and providing transparent and accountable local government to the Warrnambool community. Collectively, the Council team of seven councillors set the strategic direction for the municipality, develop policy, identify service standards and monitor performance.Council has a number of roles including:• Taking into account the diverse needs of the local

community in decision-making• Providing leadership by establishing strategic

objectives and monitoring achievements• Ensuring that resources are managed in a responsible

and accountable manner• Advocating the interests of the local community to

other communities and governments• Fostering community cohesion and encouraging active

participation in civic life.

On Monday 30 November 2015, Councillor Kylie Gaston was elected Mayor.

Mayors are elected by their fellow councillors to lead the Council for a term of one or two years. Mayors preside

over Council meetings and ensure they are conducted in accordance with local laws and established conventions. As Council’s principal spokesman the Mayor is responsible for speaking on behalf of Council, communicating the decisions of Council, modelling good councillor conduct and promoting positive working relationships between Councillors and Council’s administration.

Council MeetingsDates for Council meetings are advertised in the local media and on our website. A guide to Council’s meeting procedures is now available on the website. Ordinary meetings are held every forth Monday commencing at 5.45 pm and are open to the public. Four Special Council meetings were held in 2015/16.

Council Meeting ParticipationMayor, Kylie GastonCr. Robert AskewCr. Jacinta ErmacoraCr. Peter HulinCr. Brian KelsonCr. Michael NeohCr. Peter Sycopoulis

Ordinary 11

11

11

9

10

10

9

Annual 1

1

1

1

1

1

1

Special 3

4

2

4

4

3

3

Attendance rate97%

97%

86%

90%

97%

90%

83%

Closed13

12

11

12

13

12

11

37

Improving Transparency of Decision Making During 2015/16 a major review of Council’s meeting procedure Local Law was completed. Council’s meeting procedure practices were reviewed against the model widely used by councils across Victoria, with analysis undertaken on several other councils’ local laws. The review process also included a number of consultations with Councillors and senior officers, culminating in the adoption the new Governance Local Law in May 2016. With the aim of enhancing Council’s decision making processes and good governance practices, the new Local Law incorporates changes in legislation since the 2009 and amendments to improve clarity.

In order to improve transparency and accessibility of Council‘s decision making, in August 2015 , Council commenced audio recording of all ordinary meetings. With recordings made available on Council’s website the next

day. Commencing in June 2016, ‘awarding of contract’ decisions made at closed meetings of Council are now published on Council’s website.

Other good governance initiatives this financial year included reviews by Council of: • Council‘s Election Caretaker Policy (adopted Feb 2016)• Provision of Resources & Support for Councillors Policy

(adopted July 2015)• Councillors IT Equipment – Condition of Use Policy

(adopted July 2015)

Supporting Council’s decision makingAs part of our commitment to good governance, quality decision making and community participation, we support a range of committees with community and external representation. Our Councillors also represent the interests of Council on a range of external committees.

38

Committee Meeting Frequency

Councillor Representative(S) 2015-2016

Other PersonsExternal/Community Members

OfficerMembership/Attendance

National/State/Regional BodiesCorangamite Regional Library Corporation

Great South Coast Board

Municipal Association of Victoria

Regional Cities Victoria

Barwon South West Waste & Resource Recovery Group

Victorian Local Governance Association

Alliance of Councils for Rail Freight Development

Monthly

Bi-monthly

Bi-monthly

Bi-monthly

Mayor, Cr. Gaston

Mayor, Cr. Gaston

Mayor(Substitute: Cr. Hulin)

Mayor, Cr. Gaston

Cr. Hulin(Substitute: Cr Sycopoulis)

Mayor(Substitute : Cr. Hulin)

Mayor, Cr. Gaston

DCD.

CE

CE

CE

DCI, MIS

CE

MED.

Corporate/Governance CommitteesAudit & Risk Committee

Chief Executive’s Employment Matters Committee

Committee of the Whole of Council

Quarterly

As required

Mayor, Cr. Gaston Cr. Neoh

Mayor, Cr. GastonCr. NeohCr. Ermacora

All Councillors

Independent ChairComm. Members x 2 Internal AuditorExternal Auditor

Independent ChairExternal Consultant

N/A

CE, DCS, MFS, MGR, MOD

CE, MGR

CE, MGR, Senior Officers as re-quired

39

Committee Meeting Frequency

Councillor Representative(S) 2015-2016

Other PersonsExternal/Community Members

OfficerMembership/Attendance

Council Local Advisory CommitteesAustralia Day Advisory Committee

Landscape & Development Advisory Committee

City Health & Wellbeing Advisory Committee

Flagstaff Hill Advisory Committee

International Relations Advisory Committee

Safer Harbour Community Reference Group`Warrnambool Regional Airport Advisory Committee

Warrnambool Livestock Exchange Reference

As required

Quarterly

Bi-monthly

Bi-monthly

As required

As required

Quarterly

Quarterly

Mayor, Cr. Gaston

Cr. Hulin

Cr. Sycopoulis

Cr. Askew

Cr. Askew

Mayor, Cr. Kelson

Cr. Neoh

Cr. Askew

DCS

DCG, MCS&D, MIS

DCD, MCP&P

DCG, MTS

DCG

DCI, IPO

DCI, CE, MIP

DCS, SMS

Independent ChairComm. Members x 3

Comm. Members x 8

Comm. Members x -13

Comm. Members x 8

Comm. Members x 8

Comm. Members x 11

Comm. Members x 1

Comm. Members x 5

Legend: CE – Chief Executive; DCD – Dir. Community Development; DCG – Dir. City Growth; DCS – Dir. Corporate Strate-gies; DCI – Dir. City Infrastructure; MFS – Manager Financial Services; MGR – Manager Governance Projects & Risk; MOD – Manager Organisation Development; MIS – Manager Infrastructure Services; MIP – Manager Infrastructure Projects; MCS&D – Manager City Strategy & Development; Manager Economic Development; SMS – Service Manager Saleyards; MCP&P - Manager Community Policy & Planning; IPO - Infrastructure Project Officer

Councillors Code of ConductCouncillors are entrusted to represent and make decisions in the best interests of the entire community.A Code of Conduct is a commitment to how as Councillors they will work together, work with the Council organisation and the community and how they are expected to conduct themselves, in all aspects of their duties.In October 2015, the Local Government (Improved Governance) Act 2015 amended the Local Government Act 1989 to provide the additional requirement that all incoming councillors must read and abide by their Code. The legislative reforms had the broad aims of strengthening governance and leadership by providing councils with the capacity to manage and resolve poor conduct by individual councillors. All councils were required to review and make any necessary amendments to their within four months of 1 March 2016. After consultation with councillors, a revised draft Code was scheduled for adoption by Council at a special meeting scheduled for the 4 July 2016.

Conflict of InterestA conflict of interest occurs when a personal or private interest might compromise the ability of a Councillor or Council officer to act in the public interest. A conflict of interest exists even if no improper act results from it. To ensure transparency in the decision-making processes of Council, Councillors and staff are required to declare and document their interest in a matter. Declaration of a conflict of interest is a standard agenda item for all Council and Committee meetings. Where a Councillor has declared an interest, they must take no part in the decision-making process on that matter. Although no decisions are made in Councillor Workshops and Briefings, Councillors are still required to declare their interest in a matter and leave the room whilst it is being discussed.

During 2015/16, Councillors’ declared 46 conflicts of interests.

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Councillor support andremunerationThe ‘Provision of Support & Resources to Councillors’ Policy provides an overview of the resources, administrative and professional development support to be provided to Councillors to enable them to carry out their duties as representatives of the community, communicate with each other, officers and the community.In line with the policy, support is provided to the Mayor in the form of a council vehicle, office administration and support. Information communication technology and opportunities for paid professional development are also available to all Councillors.

Pursuant of section 75B of the Local Government Act 1989, a copy of the policy is available for public inspection and is also accessible on Council’s website.

The details of reimbursements to Councillors for the 2015-16 year are set out in the following table.

Type of MeetingOrdinarySpecialClosedBriefing

No. of Cr. Conflicts declared185419

CouncillorsCr. Kylie Gaston Cr. Robert AskewCr. Jacinta ErmacoraCr. Brian Kelson Cr. Peter HulinCr. Michael NeohCr. Peter Sycopoulis

PD2795.000.001,940.270.002395.000.000.00

ICT480.001080.00480.00840.001428.00480.001536.00

TA68.450.00741.170.00843.630.000.00

Total3,343.451080.003161.44840.004669.63480.001536.00

Legend: PD – Professional Development/Seminars/Conferences ; ICT-Information and Communication expenses; TA – Travel/Accommodation & other reimburses relative to Professional Development.

NB: Table does not include expenses for Mayoral duties or expenses for Council initiated Councillor events/activities.

In accordance with Section 74 of the Local Government Act 1989, Councillors are entitled to receive an allowance while performing their duty as a Councillor. The Mayor is also entitled to receive a higher allowance.

The State Government sets the upper and lower limits for all allowances and Councils are divided into three categories based on the income and population of each Council. Warrnambool City Council is recognised as a category 2 council.

The Minister for Local Government approved an annual adjustment, effective from 1 December increasing a councillor’s allowance to $24,127 per annum, excluding superannuation, and the Mayoral allowance to $74,655 per annum.

The following table contains a summary of the allowance amounts paid to each councillor during the year:

Councillor AllowanceCr. Kylie Gaston 61,933.27Cr. Robert Askew 26,204.72Cr. Jacinta Ermacora 26,204.72Cr. Peter Hulin 26,204.72Cr. Brian Kelson 26,204.72Cr. Michael Neoh 44,196.72Cr. Peter Sycopoulis 26,204.72

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Managing Risk Warrnambool City Council manages strategic, emerging and operational risks through its Risk Management Framework (RMF). The RMF sets out the foundations and organisational arrangements for managing risk, including the lines of authority, reporting, managerial and administrative mechanisms, and guidelines.

During 2015/16 Risk Management activities and initiatives included:• Risk Strategy updated• Risk Management Procedures reviewed • New Risk Register software supplier confirmed,

configured & implementation commenced• Strategic Risk profile reviewed • Fraud risk assessments completed across Council• Fraud Risks captured in Council’s Risk register and

Fraud Control Plan updated• In-house Fraud Training online package developed and

delivered across Council • Fraud Policy review completed & scheduled for Council

adoption Sept 2016• Business Continuity plan invoked, review of incident

conducted and action plan implemented to drive improvements.

• Agendas/reports prepared quarterly for the Risk Management Review Panel & Audit and Risk Committee

• Annual renewal of Councils insurance policies completed – including the re-insurance of c$168m of Council assets and nearly $15m of artwork and museum artefacts.

• New Cyber Liability Insurance policy obtained to reduce consequences and potential financial losses to Council against the emerging risk of Cyber crime

• Participated in external property inspection audit of Lighthouse Theatre and Civic Centre building

• Managed 19 under excess claims & assist the Crown land insurers with 5 claims.

• Insurance and claims management procedure developed

• Received and investigated 187 public liability incident reports, 40 motor vehicle incident reports & 30 incident reports of damage to Council properties.

Freedom of Information Act Under the Freedom of Information Act 1982, everyone has the right to access certain information held by Council. We vigorously support the requirements of the Act.Requests for access to Council documents under the Act must be in writing and provide sufficient information to identify the particular document(s) being sought. In 2015/16 Council processed 11 FOI applications.

Protected Disclosures Act The process for making a disclosure, relevant contacts and rights under the Protected Disclosure Act 2012 are available on Council website.

There was NIL disclosures notified to the IBAC (Independent Broad-based Anti-corruption Commission) under section 21(2) of the Act during the financial year.

Privacy and Data Protection Act Council understands how important it is to our community’s confidence in Council services to ensure that any personal information we hold about an individual will be treated in a way which ensures their privacy is protected.

In line with the replacement of the Information Privacy Act 2001 with the Privacy and Data Protection Act 2014 Council adopted a revised Privacy Policy October 2014. Our commitment in respect of personal information is to abide by the Privacy Principles and the protection of personal information, as set out in Council’s Policy, Victorian legislation and other relevant law. Our Privacy Policy is accessible on our website.

42

Statutory informationThe following information is provided in accordance with legislative and other requirements applying to council.

Documents available for public inspection In accordance with regulation 12 of the Local Government (General) Regulations 2015 the following are prescribed documents that are available for public inspection or copies of the documents can be obtained for the purposes of section 222 of the Act at 25 Liebig Street, Warrrnambool: • a document containing details of overseas or interstate

travel (other than interstate travel by land for less than three days) undertaken in an official capacity by councillor or any member of council staff in the previous 12 months

• minutes of ordinary and special meetings held in the previous 12 months which are kept under section 93 of the Act, other than those agendas and minutes relating to a part of a meeting which was closed to members of the public under section 89 of the Act and are confidential information within the meaning of section 77(2) of the Act

• the minutes of meetings of special committees

established under section 86 of the Act and held in the previous 12 months, other than those minutes relating to a part of a meeting which was closed to members of the public under section 89 of the Act and are confidential information within the meaning of section 77(2) of the Act

• a register of delegations kept under sections 87(1) and 98(4) of the Act, including the date on which the last review took place under sections 86(6) and 98(6), respectively, of the Act

• a document containing details of all leases involving land which were entered into by the council as lessor, including the lessee and the terms and the value of the lease

• a register maintained under section 224(1A) of the Act of authorised officers appointed under that section

• a list of donations and grants made by the council in the previous 12 months, including the names of persons who, or bodies which, have received a donation or grant and the amount of each donation or grant.

Governance & Management ChecklistWith the introduction of new Local Government planning and reporting requirements the following are the result in the prescribed form of council’s assessment against the prescribed governance and management checklist.

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Governance and management checklistThe following are the results in the prescribed form of council’s assessment against the prescribed governance and management checklist.

Governance and management item

1 Community engagement policy(policy outlining council’s commitment to engaging with the community on matters of public interest)2 Community engagement guidelines(guidelines to assist staff to determine when and how to engage with the community)3 Strategic Resource Plan(plan under section 126 of the Act outlining the financial and non- financial resources required for at least the next 4 financial years)4 Annual budget(plan under section 130 of the Act setting out the services to be provided and initiatives to be undertaken over the next 12 months and the funding and other resources required)5 Asset management plans(plans that set out the asset maintenance and renewal needs for key infrastructure asset classes for at least the next 10 years)6 Rating strategy(strategy setting out the rating structure of council to levy rates and charges7 Risk policy(policy outlining council’s commitment and approach to minimising the risks to council’s operations)

8 Fraud policy(policy outlining council’s commitment and approach to minimising the risk of fraud)9 Municipal emergency management plan (plan under section 20 of the Emergency Management Act 1986 for emergency prevention, response and recovery)10 Procurement policy(policy under section 186A of the Local Government Act 1989 outlining the matters, practices and procedures that will apply to all purchases of goods, services and works)11 Business continuity plan(plan setting out the actions that will be undertaken to ensure that key services continue to operate in the event of a disaster)

12 Disaster recovery plan(plan setting out the actions that will be undertaken to recover and restore business capability in the event of a disaster) 13 Risk management framework(framework outlining council’s approach to managing risks to the council’s operations)

AssessmentPolicy - yesDate of operation of current policy: 17 March 2014Guidelines - yes

Date of operation of current guidelines: 17 January 2015

Adopted in accordance with section 126 of the ActDate of adoption: 27 June 2016

Adopted in accordance with section 130 of the ActDate of adoption: 27 June 2016

Plans - yesDate of operation of current plans: 1 December 2014

Strategy - yesDate of operation of current strategy: 27 June 2016

Policy - yesDate of operation of current policy: 2 February 2015

Policy - yesDate of operation of current policy: 1 May 2013

Prepared and maintained in accordance with section 20 of the Emergency Management Act 1986Date of preparation: 31 March 2016

Prepared and approved in accordance with section 186A of the Local Government Act 1989Date of approval: 7 December 2015

Plan - yesDate of revision of current Plan:27 October 2015



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14 Audit Committee(advisory committee of council under section 139 of the Act whose role is to oversee the integrity of a council’s financial reporting, processes to manage risks to the council’s operations and for compliance with applicable legal, ethical, and regulatory requirements)15 Internal audit(independent accounting professionals engaged by the council to provide analyses and recommendations aimed at improving council’s governance, risk and management controls)16 Performance reporting frameworka set of indicators measuring financial and non-financial performance, including the performance indicators referred to in section 131 of the Act)17 Council Plan reporting(report reviewing the performance of the council against the council plan, including the results in relation to the strategic indicators, for the first six months of the financial year)18 Financial reporting(quarterly statements to council under section 138 of the Act comparing budgeted revenue and expenditure with actual revenue and expenditure)19 Risk reporting(six-monthly reports of strategic risks to council’s operations, their likelihood and consequences of occurring and risk minimisation strategies)20 Performance reporting(six-monthly reports of indicators measuring the results against financial and non-financial performance, including performance indicators referred to in section 131 of the Act)21 Annual report(annual report under sections 131, 132 and 133 of the Act to the community containing a report of operations and audited financial and performance statements)22 Councillor Code of Conduct(Code under section 76C of the Act setting out the conduct principles and the dispute resolution processes to be followed by councillors)23 Delegations(a document setting out the powers, duties and functions of council and the Chief Executive Officer that have been delegated to members of staff)24 Meeting procedures(a local law governing the conduct of meetings of council and special committees)

Established in accordance with section 139 of the ActDate of establishment: 9 October 2006

EngagedDate of engagement of current provider: 1 March 2013

FrameworkDate of operation of current framework: 1 July 2015

ReportsDate of reports: 7 Sept 2015, 7 March 2016, 2 May 2016

Statements presented to council in accordance with sec-tion 138(1) of the ActDate statements presented: 2 Nov 2015, 7 March 2016, 6 June 2016

ReportsDate of reports: 8 September 2015 and 24 May 2016

ReportsDate of reports: 7 Sept 2015, 7 March 2016, 2 May 2016

Considered at a meeting of council in accordance with section 134 of the ActDate statements presented: 26 October 2015Reviewed in accordance with section 76C of the Act

Date adopted: 8 July 2013, amended/adopted 4 July 2016Reviewed in accordance with section 98(6) of the Act

Date of review: 24 February 2016

Meeting procedures local law made in accordance with section 91(1) of the Act Date local law made: 2 May 2016

I certify that this information presents fairly the status of council’s governance and management arrangements.

Bruce AnsonChief Executive Officer Dated: ## September 2016

Cr Kylie GastonMayorDated: ## September 2016

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Indicator/measure

PopulationExpenses per head of municipal population (total expenses/municipal population

Infrastructure per head of municipal population[Value of infrastructure / Municipal population]

Population density per length of road[Municipal population / Kilometres of local roads]

Own Source RevenueOwn-source revenue per head of municipal popu-lation[Own-source revenue / Municipal population]

Recurrent grantsRecurrent grants per head of municipal population[Recurrent grants / Municipal population]

DisadvantageRelative Socio Economic Disadvantage[Index of Relative Socio-economic Disadvantage by decile]

Results2015$1,938.09

$14,040.75

104.69

$1,404.58

$461.30

6

Result2016$1,979.91

$14,440.75

99.24

$1,534.57

$349.10

6

Material variations

Sustainability Capacity indicators

Definitions“adjusted underlying revenue” means total income other than:(a) non-recurrent grants used to fund capital expenditure; and(b) non-monetary asset contributions; and(c) contributions to fund capital expenditure from sources other than those referred to above “infrastructure” means non-current property, plant and equipment excluding land“local road” means a sealed or unsealed road for which the council is the responsible road authorityunder the Road Management Act 2004“population” means the resident population estimated by council“own-source revenue” means adjusted underlying revenue other than revenue that is not under the control of council (including government grants)“relative socio-economic disadvantage”, in relation to a municipality, means the relative socio-economicdisadvantage, expressed as a decile for the relevant financial year, of the area in which the municipality is located accord-ing to the Index of Relative Socio-Economic Disadvantage (Catalogue Number 2033.0.55.001) of SEIFA“SEIFA” means the Socio-Economic Indexes for Areas published from time to time by the Australian Bureau of Statistics on its Internet website“unrestricted cash” means all cash and cash equivalents other than restricted cash.

46

Local GovernmentPerformance IndicatorsThe Local Government Performance (Planning and Reporting) Regulations 2014 set out the financial planning and reporting framework for local government referred to as the ‘Local Government Performance Reporting Framework (LGPRF)’

The LGPRF is a mandatory system where all councils are required to measure and report against a prescribed set of indicators and measures as part of a Council’s Annual Report and via Local Government Victoria’s Know Your Council website. The LGPRF consists of four indicator sets: service performance, financial performance, sustainable capacity and the governance and management checklist.

Statutory Reporting Requirements:Pursuant to the Local Government Act 1989 and Planning and Reporting Regulations 2014, the tables on the following pages detail the full year indicator results and requirements which will also be uploaded to the State Government ‘Know Your Council’ website.

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Service Performance IndicatorsIndicator/measure

Aquatic facilities

User satisfaction with aquatic facilities

Health inspections at aquatic facilities

Reportable safety incidents at aquatic facilities

Cost of indoor aquatic facilities per visit

Cost of outdoor aquatic facilities per visit

Number of visits to aquatic facilities per head of municipal population

Animal management

Time taken to action animal management requests

Percentage of animals reclaimed from Council

Cost of animal management service per registered animal

Animal management prosecutions

Food safety

Time taken to action food complaints

Percentage of required food safety assessments undertaken

Cost of food safety service per premises

Percentage of critical and major non-compliance outcome notifications followed up by council

Results 2015

N/A

1

1

$2.18

$3.48

6.16

0

89%

$15.79

0

1.07

90%

$800.80

94%

Results2016

N/A

1

0

$1.94

$3.33

7.14

0

80.92%

$27.95

0

1

100%

$371.80

100%

Material variations

Optional, not currentlymeasured

Nil reportable incidents

Requests acted on within one day.

Number of registered ani-mals dropped due to a major data cleansing and verifica-tion process to confirm and remove deceased/relocated animals from the data base – resulting in number of 2015-16 registered animals lower than that reported in 2014/15.Nil prosecutions

The 2014/15 figures incor-rectly did not include tempo-rary or Streatrader regis-trations, whereas 2015/16 does.

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Governance

Transparency – Council decisions made at meetings closed to the public

Community satisfaction with community consultation and engagement

Councillor attendance at Council meetings

Cost of governance per councillor

Community satisfaction with Council decisions

Home and Community Care

Timeliness - number of days between client being referred and start of HACC service

Compliance with Community Care Common Standards

Cost of domestic care service

Cost of personal care service

Cost of respite care service

Percentage of eligible residents receiving HACC services

Percentage of eligible CALD residents receiving HACC services

Libraries

Number of times a library resource is borrowed

Proportion of library resources less than 5 years old

Cost of library service per visit

Active library members in municipality

Results 2015

19%

50

93%

$49,875.00

50

0

76%

N/A

N/A

N/A

36%

13%

5.84

83%

$6.02

16%

Results2016

19.28%

51

91.13%

$47,500.43

51

.01

66.67%

$57.35

$64.75

$51.34

34.28%

14.69%

5.16

76.44%

$6.77

15.83%

Material variations

Commencing June 2016, Council gives public notice (via our website) of the ‘awarding of contract’ decisions made at meetings closed to the public.

2015/16 first year for reporting



Number of visits to the library decreased this year compared to last year based on a number of factors - decrease in in DVD loans due to other media, low visitation rate in Dec 15; and re-location of some which are now recorded as off-site program visits.

49


Maternal and child health

Percentage of infants enrolled in the MCH service who receive the first home visit

Percentage of infants enrolled in the MCH service

Cost of MCH service per hour

Percentage of children enrolled who participate in the MCH service

Percentage of Aboriginal children enrolled who participate in the MCH service

Roads

Sealed local road requests per 100km of sealed local roads

Sealed local roads maintained adequately

Cost of sealed local road reconstruction per square metre

Cost of sealed local road resealing per square metre

Community satisfaction with sealed local roads

Statutory planning

Days taken to decide planning applications

Planning applications decided within 60 days

Cost of statutory planning service per planning application

Council planning decisions upheld at VCAT

Results 2015

98%

98

N/A

78%

74%

32.09

94%

$49.56

$8.99

53

48

78%

$2,025.34

70%

Results2016

$81.65

26.38

92.8%

$68.23

$7.14

49

47

94.09%

$1,911.67

50%

Material variations

* See note below

* See note below

* See note below

* See note below

Whilst the year on year variance is greater than 10%, number of requests is only 13 fewer than the previous year.

2014/15 works involved large areas of crushed rock pave-ments with spray seal, in contrast to 2015/16 works of smaller complex sections involv-ing deep lift asphalt pavement replacements in high volume traffic management CBD areas.

As a result entering into a shared service contractual ar-rangement with a neighbouring council, a reduction in resealing costs per square metre was achieved in 2015/16.

2014/2015 included a number of high level, complex applica-tions and 2015/2016 more con-sistent staffing was achieved.

* In 2016 there was an initiative to transition the majority of Victorian councils offering Maternal and Child Health services to a new database. The database is not expected to provide reliable information until the end of September 2016. Therefore, Council is unable to report this data for the 2015-2016 financial year.

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Kerbside bin collection

Kerbside bin collection requests per 1,000 households

Kerbside collection bins missed per 10,000 bin lifts

Cost of kerbside garbage bin collection service per bin

Cost of kerbside recyclables collection service per bin

Kerbside collection waste diverted from landfill

Results 2015

120.85

2.29

$99.30

$24.53

39%

Results2016

119.23

1.84

$105.93

$26.81

38.3%

Material variations

Whilst the year on year variance is greater than 10%, the reduc-tion in bins missed compared to 2014/15 equates to less than 1 per week.

Council does not offer a green waste service as there are vi-able alternatives within the com-munity (i.e. private green waste pick up services, composting, transfer stations etc.)

Definitions“Aboriginal child” means a child who is an Aboriginal person“Aboriginal person” has the same meaning as in the Aboriginal Heritage Act 2006“active library member” means a member of a library who has borrowed a book from the library“annual report” means an annual report prepared by a council under sections 131, 132 and 133 of the Act.“CALD” means culturally and linguistically diverse and refers to persons born outside Australia in a country whose national language is not English“class 1 food premises” means food premises, within the meaning of the Food Act 1984, that have been declared as class 1 food premises under section 19C of that Act“class 2 food premises” means food premises, within the meaning of the Food Act 1984 , that have been declared as class 2 food premises under section 19C of that Act“Community Care Common Standards “means the Community Care Common Standards for the delivery of HACC ser-vices, published from time to time by the Commonwealth“critical non-compliance outcome notification” means a notification received by council under section 19N(3) or (4) of the Food Act 1984 , or advice given to council by an authorized officer under that Act, of a deficiency that poses an immedi-ate serious threat to public health“food premises” has the same meaning as in the Food Act 1984“HACC program” means the Home and Community Care program established under the Agreement entered into for the purpose of the Home and Community Care Act 1985 of the Commonwealth “HACC service” means home help, personal care or community respite provided under the HACC program“local road” means a sealed or unsealed road for which the council is the responsible road authority under the Road Man-agement Act 2004“major non-compliance outcome notification” means a notification received by a council under section19N(3) or (4) of the Food Act 1984, or advice given to council by an authorized officer under that Act, of a deficiency that does not pose an immediate serious threat to public health but may do so if no remedial action is taken“MCH” means the Maternal and Child Health Service provided by a council to support the health and development of children within the municipality from birth until school age“population” means the resident population estimated by council“target population” has the same meaning as in the Agreement entered into for the purposes of the Home and Communi-ty Care Act 1985 of the Commonwealth“WorkSafe reportable aquatic facility safety incident” means an incident relating to a council aquatic facility that is required to be notified to the Victorian WorkCover Authority under Part 5 of the Occupational Health and Safety Act 2004.

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EFFICIENCYRevenue levelAverage residential rate per residential property assessment[Residential rate revenue / Number of residential property assessments]

Expenditure levelExpenses per property assessment[Total expenses / Number of property assessments]

Workforce turnover Resignations and terminations compared to average staff[Number of permanent staff resignations and terminations / Average number of permanent staff for the financial year] x100

LIQUIDITY

Working capital Current assets compared to current liabilities[Current assets / Current liabilities] x100

Unrestricted cashUnrestricted cash compared to current liabilities[Unrestricted cash / Current liabilities] x100

OBLIGATIONS

Asset renewal Asset renewal compared to depreciation[Asset renewal expense / Asset depreciation] x100

Loans and borrowings

Loans and borrowings compared to rates[Interest bearing loans and borrowings / Rate revenue] x100

Loans and borrowings repayments compared to rates[Interest and principal repayments on interest bearing loans and borrowings / Rate revenue] x100

Indebtedness

Non-current liabilities compared to own source revenue[Non-current liabilities / Own source revenue] x100

2015

$1,628.70

$3,980.87

13.53%

137.88%

50.19%

81.78%

34.43%

4.56%

20.02%

2016

$1,723.89

$4,016.54

10.82%

125.27%

60.52%

79.38%

29.91%

5.32%

16.61%

2017

$1,766.99

$3,870.57

11.52%

101.69%

32.30%

104.54%

31.18%

5.74%

17.92%

2018

$1,811.16

$3,981.63

11.70%

103.04%

35.04%

82.50%

30.28%

5.70%

17.62%

2019

$1,856.44

$4,055.29

11.87%

106.05%

38.41%

77.52%

24.09%

5.34%

14.21%

2020

$1,902.85

$4,095.75

12.05%

109.79%

43.69%

76.94%

21.74%

4.38%

12.95%

Performance report

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Other Information - for the year ended 30 June 2016Basis of preparationCouncil is required to prepare and include a performance statement within its annual report. The performance statement includes the results of the prescribed sustainable capacity, service performance and financial performance indicators and measures together with a description of the municipal district and an explanation of material variations in the results. This statement has been prepared to meet the requirements of the Local Government Act 1989 and Local Government (Planning and Reporting) Regulations 2014.Where applicable the results in the performance statement have been prepared on accounting bases consistent with those reported in the Financial Statements. The other results are based on information drawn from council information systems or from third parties (e.g. Australian Bureau of Statistics).The performance statement presents the actual results for the current year and for the prescribed financial performance indicators and measures, the results forecast by the council’s

strategic resource plan. The Local Government (Planning and Reporting) Regulations 2014 requires explanation of any material variations in the results contained in the performance statement. Council has adopted materiality thresholds relevant to each indicator and measure and explanations have not been provided for variations below the materiality thresholds unless the variance is considered to be material because of its nature.The forecast figures included in the performance statement are those adopted by council in its strategic resource plan on 28 June 2016 and which forms part of the council plan. The strategic resource plan includes estimates based on key assumptions about the future that were relevant at the time of adoption and aimed at achieving sustainability over the long term. Detailed information on the actual financial results is contained in the General Purpose Financial Statements. The strategic resource plan can be obtained by contacting council.

Operating position

Adjusted underlying resultAdjusted underlying surplus (or deficit) [Adjusted underlying surplus (deficit)/ Adjusted underlying revenue] x100

STABILITY

Rates concentration Rates compared to adjusted underlying revenue[Rate revenue / Adjusted underlying revenue] x100

Rates effort

Rate compared to property values[Rate revenue / Capital improved value of rateable properties in the municipality] x100

-0.26%

47.81%

0.52%

-3.20%

51.70%

0.55% year

1.31%

52.60%

0.55%

-1.03%

53.40%

0.56%

-1.38%

53.66%

0.56%

-0.70

53.80%

0.57%

Effeciency 2015 2016 2017 2018 2019 2020

Definitions“adjusted underlying revenue” means total income other than:a) non-recurrent grants used to fund capital expenditure; andb) non-monetary asset contributions; andc) contributions to fund capital expenditure from sources other than those referred to above“adjusted underlying surplus (or deficit)” means adjusted underlying revenue less total expenditure“asset renewal expenditure” means expenditure on an existing asset or on replacing an existing asset that returns the service capability of the asset to its original capability“current assets” has the same meaning as in the AAS “current liabilities” has the same meaning as in the AAS“non-current assets” means all assets other than current assets“non-current liabilities” means all liabilities other than current liabilities“non-recurrent grant” means a grant obtained on the condition that it be expended in a specified manner and is not expected to be

received again during the period covered by a council’s Strategic Resource Plan“own-source revenue” means adjusted underlying revenue other than revenue that is not under the control of council (including government grants“population “means the resident population estimated by council“rate revenue” means revenue from general rates, municipal charges, service rates and service charges “recurrent grant “means a grant other than a non-recurrent grant“residential rates” means revenue from general rates, municipal charges, service rates and service charges levied on residential properties“restricted cash” means cash and cash equivalents, within the meaning of the AAS, that are not available for use other than for a purpose for which it is restricted,and includes cash to be used to fund capital works expenditure from the previous financial year “unrestricted cash” means all cash and cash equivalents other than restricted cash.

54

Financial ReportComprehensive Income Statement For The Year Ended 30 June 2016

Page 1

Warrnambool City CouncilComprehensive Income Statement For The Year Ended 30 June 2016

Note 2016 2015$'000 $'000

3 33,096 30,9654 1,369 1,3215 16,213 16,1686 11,662 15,9096 5,770 4,7087 1,664 2,2147 7,936 2,9838 (548) (2,112)9 897 91216 49 (199)

78,108 72,869

10 (30,013) (28,707)11 (24,331) (25,693)12 (210) (19)13 (10,166) (9,049)14 (601) (627)15 (743) (833)

(66,064) (64,928)

12,044 7,941

22 5,435 (7,174)16 3 0

17,482 767

IncomeRates and chargesStatutory fees and finesUser feesGrants - OperatingGrants - CapitalContributions - MonetaryContributions - Non-monetaryNet gain/(loss) on disposal of property, infrastructure, plant and equipmentOther incomeShare of net profits/(losses) of associates

Total Income

ExpensesEmployee costsMaterials and servicesBad and doubtful debtsDepreciation and amortisationBorrowing costsOther expensesTotal Expenses

Surplus/(Deficit) for the year

Other Comprehensive IncomeItems that will not be reclassified to surplus or deficit in future periods:

Net asset revaluation increment / (decrement)Share of other comprehensive income from investements in associates

Total Comprehensive Result

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

55

Financial ReportBalance Sheet as at 30 June 2016

Page 1

Warrnambool City CouncilBalance Sheet as at 30 June 2016

Note 2016 2015$'000 $'000

17 3,227 7,09918 3,458 3,85419 9,000 7,00020 111 11821 421 531

16,217 18,602

18 161 18116 493 44122 647,210 628,883

647,864 629,505 664,081 648,107

23 4,564 5,39824 720 79125 5,668 5,55826 1,985 1,764

12,937 13,511

25 569 52326 7,915 8,896

8,484 9,419 21,421 22,930

642,660 625,177

201,134 189,57427 441,526 435,603

642,660 625,177

AssetsCurrent assetsCash and cash equivalentsTrade and other receivablesOther financial assetsInventoriesOther assetsTotal current assets

Non-current assetsTrade and other receivablesInvestments in associatesProperty, infrastructure, plant and equipmentTotal non-current assetsTotal assets

LiabilitiesCurrent liabilitiesTrade and other payablesTrust funds and depositsProvisionsInterest-bearing loans and borrowingsTotal current liabilities

Non-current liabilitiesProvisionsInterest-bearing loans and borrowingsTotal non-current liabilitiesTotal liabilities

Net Assets

EquityAccumulated surplusReserves

Total Equity

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

56

Financial ReportStatement of Changes in Equity for the Year Ended 30 June 2016

Page 1

Warrnambool City CouncilStatement of Changes in Equity for the Year Ended 30 June 2016

NoteTotal$'000

AccumulatedSurplus$'000

AssetRevaluation

Reserve$'000

OtherReserves

$'000

625,179 189,579 429,8670 0

3 3 0 027(a) 0 5,435 027(b) 0 (1,275) 0 1,27527(b) 0 783 0 (783)

6,224

624,410 181,636 437,044 5,7307,941 7,941 0 0

27(a) (7,174) (7,174) 027(b) 0 (933) 0 93327(b) 0 930 0 (930)

2016

Balance at beginning of the financial yearSurplus/(deficit) for the yearOther comprehensive income from investments in associates Net assets revaluation increment/(decrement)Transfers to other reservesTransfers from other reserves

Balance at end of financial year

2015

Balance at beginning of the financial yearSurplus/(deficit) for the yearNet assets revaluation increment/(decrement)Transfers to other reservesTransfers from other reserves

Balance at end of financial year 625,177 189,574 429,870 5,733

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

57

Financial ReportStatement of Cash Flows for the Year Ended 30 June 2016

Page 1

Warrnambool City CouncilStatement of Cash Flows for the Year Ended 30 June 2016

Note

2016 Inflows/(Outflows)

$'000

2015 Inflows/(Outflows)

$'000

Cash flows from operating activities

Rates and charges 33,152 30,686Statutory fees and fines 1,369 1,193User charges 16,349 16,168Grants - operating 17,635 20,508Contributions - monetary 1,664 2,057Interest received 482 493Trust funds and deposits taken 1,324 1,067Other receipts 406 419Net GST refund / (payment) (148) (91)Employee costs (29,856) (28,308)Materials and services (25,415) (24,987)Trust funds and deposits repaid (1,395) (1,220)Other payments (1,306) (1,360)Net cash provided by/(used in) operating activities 28 14,261 16,625

Cash flows from investing activitiesPayments for property, infrastructure, plant and equipment 22 (15,754) (19,325)Proceeds from sale of property, infrastructure, plant and equipment 381 2,029Payments for investments (32,000) (18,000)Proceeds from sale of investments 32,000 23,000

Net cash provided by/(used in) investing activities (15,373) (12,296)

Cash flows from financing activitiesProceeds from borrowings 1,000 2,199Repayment of borrowings (1,760) (1,411)

(760) 788

5,1177,099 1,982

7,099

29

Net cash provided by/(used in) financing activities

Net increase/(decrease) in cash and cash equivalentsCash and cash equivalents at the beginning of the financial yearCash and cash equivalents at the end of the financial year

Financing arrangements

Restrictions on cash and assets. 17

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

58

Page 1

Warrnambool City CouncilStatement of Capital Works for the Year Ended 30 June 2016

2016 2015$'000 $'000

PropertyLand specialised 523 1,685Land non-specialised 458 0Land improvements 38 0Total Land 1,019 1,685

Buildings specialised 2,279Buildings non-specialised 264 7Building improvements 385 1,617Total Buildings 3,036 3,903Total Property 4,055 5,588

Plant and equipment

Plant, machinery and equipment 1,204Fixtures, fittings and furniture 31 50Computers and telecommunications 10 917Paintings and exhibits 56 51Total plant and equipment 1,187 2,222

Infrastructure

Roads 7,793Bridges 770 158Footpaths and cycleways 438 748Drainage 1,585 2,406Recreational, leisure and community facilities 37 259Parks, open space and streetscapes 460 0Aerodromes 483 0Off street car parks 24 198Other infrastructure 55 204Total infrastructure 10,837 11,766

12,024 13,988Total capital works expenditure 16,079 19,576

Represented by:New asset expenditure 6,467 8,383Asset renewal expenditure 8,070 7,400Asset expansion expenditure 472 436Asset upgrade expenditure 1,071 3,357Total capital works expenditure 16,079 19,576

The above statement of capital works should be read in conjunction with the accompanying notes.

2,387

1,090

6,985

Financial ReportStatement of Changes in Equity for the Year Ended 30 June 2016

59

Financial ReportNotes to the Financial Report for the year ended 30 June 2016

Page 1

Warrnambool City CouncilNotes to the Financial Report for the year ended 30 June 2016

Introduction(a)

Statement of Compliance

Note 1 Significant accounting policies

(a) Basis of accounting

(b)

(c)

(d)

(e) Revenue recognition

Rates and ChargesAnnual rates and charges are recognised as revenues when Council issues annual rates notices. Supplementary rates arerecognised when a valuation and reassessment is completed and a supplementary rates notice issued.

The Warrnambool City Council was established by an Order of the Governor in Council on 20 September 1994.

The Council's main office is located at 25 Liebig Street Warrnambool.

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

The accrual basis of accounting has been used in the preparation of these financial statements whereby assets, liabilities,equity, income and expenses are recognised in the reporting period to which they relate, regardless of when cash is receivedor paid.

Judgements, estimates and assumptions are required to be made about the carrying values of assets and liabilities that arenot readily apparent from other sources. The estimates and associated judgements are based on professional judgementderived from historical experience and various other factors that are believed to be reasonable under the circumstances.Actual results may differ from these estimates.

Revisions to accounting estimates are recognised in the period in which the estimate is revised and also in future periodsthat are affected by the revision. Judgements and assumptions made by management in the application of AASs that havesignificant effects on the financial statements and estimates relate to:

- the fair value of land, buildings, infrastructure, plant and equipment (refer to note 1 (I) )- the determination of depreciation for buildings, infrastructure, plant and equipment (refer to note 1(m) )

- the determination of employee provisions (refer to note 1(r) )

This financial report are a general purpose financial report that consists of a Comprehensive Income Statement, BalanceSheet, Statement of Changes in Equity, Cash Flow Statement, Statement of Capital Works and Notes accompanying thesefinancial statements. The general purpose financial report complies with Australian Accounting Standards, other authoritativepronouncements of the Australian Accounting Standards Board, the Local Government Act 1989, and the LocalGovernment (Planning and Reporting) Regulations 2014.

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

Change in accounting policiesThere have been no changes in accounting policies from the previous period.

Committees of managementAll entities controlled by Council that have material revenues, expenses, assets or liabilities, such as committees of management, have been included in this financial report. Any transactions between these entities and Council have been eliminated in full.

Accounting for investments in associates AssociatesAssociates are all entities over which Council has significant influence but not control or joint control. Investments in associates are accounted for using the equity method of accounting, after initially being recognised at cost.

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Note 1 Significant accounting policies (cont.)

(e) Revenue recognition (cont.)

Statutory fees and fines

User fees

Grants

Contributions

Sale of property, infrastructure, plant and equipment

Interest

Dividends

Other Income

(f) Fair value measurement

AASB 13 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderlytransaction between market participants at the measurement date. Fair value under AASB 13 is an exit price regardless ofwhether that price is directly observable or estimated using another valuation technique.

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

Council measures certain assets and liabilities at fair value where required or permitted by Australian Accounting Standards.AASB 13 Fair value measurement, aims to improve consistency and reduce complexity by providing a definition of fair valueand a single source of fair value measurement and disclosure requirements for use across Australian Accounting Standards.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within a fairvalue hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as awhole:Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

User fees are recognised as revenue when the service has been provided or the payment is received, whichever first occurs.

Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly orindirectly observable; andLevel 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement isunobservable.For the purpose of fair value disclosures, Council has determined classes of assets and liabilities on the basis of the nature,characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

Interest is recognised as it is earned.

Dividend revenue is recognised when the Council's right to receive payment is established.

Where grants or contributions recognised as revenues during the financial year were obtained on condition that they beexpended in a particular manner or used over a particular period and those conditions were undischarged at balance date,the unused grant or contribution is disclosed in note 6. The note also discloses the amount of unused grant or contributionfrom prior years that was expended on Council’s operations during the current year.

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

Monetary and non monetary contribution are recognised as revenue when Council obtains control over the contributedasset.

Other income is measured at the fair value of the consideration received or receivable and is recognised when Council gainscontrol over the right to receive the income.

Grant income is recognised when Council obtains control of the contribution. This is normally obtained upon their receipt (oracquittal) or upon earlier notification that a grant has been secured, and are valued at their fair value at the date of transfer.


61

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(f) Fair value measurement (cont.)

(g) Cash and cash equivalents

(h) Trade and other receivables

(i) Other financial assets

(j) Inventories

(k) Non-current assets held for sale

(l)

Other financial assets are valued at fair value, being market value, at balance date. Term deposits are measured atamortised cost. Any unrealised gains and losses on holdings at balance date are recognised as either a revenue or expense.

In addition, Council determines whether transfers have occurred between levels in the hierarchy by re-assessingcategorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of eachreporting period.

Receivables are carried at amortised cost using the effective interest rate method. A provision for doubtful debts isrecognised when there is objective evidence that an impairment has occurred.

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

All other inventories, including land held for sale, are measured at the lower of cost and net realisable value. WhereInventories are acquired for no cost or nominal consideration, they are measured at current replacement cost at the date ofacquisition.

A non-current asset held for sale (including disposal groups) is measured at the lower of its carrying amount and fair valueless costs to sell, and are not subject to depreciation. Non-current assets, disposal groups and related liabilities and assetsare treated as current and classified as held for sale if their carrying amount will be recovered through a sale transactionrather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset'ssale (or disposal group sale) is expected to be completed within 12 months from the date of classification.

Cash and cash equivalents include cash on hand, deposits at call, and other highly liquid investments with original maturitiesof 90 days or less, net of outstanding bank overdrafts.

Recognition and measurement of property, plant and equipment, infrastructure and intangibles

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

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

In accordance with Council's policy, the threshold limits detailed in Note 1 (n) have applied when recognising assets within an applicable asset class and unless otherwise stated are consistent with the prior year.

RevaluationSubsequent to the initial recognition of assets, non-current physical assets, other than plant and equipment, are measured at their fair value, being the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. At balance date, the Council reviewed the carrying value of the individual classes of assets measured at fair value to ensure that each asset materially approximated its fair value. Where the carrying value materially differed from the fair value at balance date the class of asset was revalued.


62 Page 4



(l)

(m)

2016 Threshold LimitProperty $'000

land n/a 0land improvements 20 - 200 years 5

Buildings

60 - 100 years 510 - 20 years 1

buildingsbuilding improvements leasehold improvements 10 - 20 years 1

Plant and Equipmenthertiage plant and equipment n/a 1plant, machinery and equipment 3 - 10 years 1fixtures, fittings and furniture 2 - 25 years 1computers and telecommunications 5 - 20 years 1library books n/a 0

Infrastructure16 - 200 years 530 - 200 years 520 - 65 years 5

20 - 100 years 120 - 80 years 1

15 - 80 years 516 - 200 years 5

roadsbridgesfootpaths and cyclewaysdrainagerecreational, leisure and community facilities

parks, open space and streetscapesoff street car parksaerodromes 16 - 100 years 1

Recognition and measurement of property, plant and equipment, infrastructure, intangibles (cont.)

Fair value valuations are determined in accordance with a valuation hierarchy. Changes to the valuation hierarchy will only occur if an external change in the restrictions or limitations of use of an asset result in changes to the permissible or practical highest and best use of the asset. Further details regarding the fair value hierarchy are disclosed at Note 23 Property, infrastrucutre, plant and equipment.

In addition, Council undertakes a formal revaluation of land, buildings, and infrastructure assets on a regular basis ranging from 3 to 5 years. The valuation is performed either by experienced council officers or independent experts.

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

Land under roadsCouncil recognises land under roads it controls at fair value.

Depreciation and amortisation of property, infrastructure, plant and equipment and intangibles

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

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

Road earthworks are not depreciated on the basis that they are assessed as not having a limited useful life.

Land and Artworks are not depreciated.

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

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


63Page 5



(n) Repairs and maintenance

(o) Impairment of assets

(p) Trust funds and deposits

(q) Borrowing

Borrowing Costs

(r) Employee costs and benefits

Wages and salaries, and annual leave

Long service leave

Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulated sick leave expected to bewholly settled within 12 months of the reporting date are recognised in the provision for employee benefits in respect ofemployee services up to the reporting date, classified as current liabilities and measured at their nominal values.

Liabilities that are not expected to be wholly settled within 12 months of the reporting date are recognised in the provision foremployee benefits as current liabilities, measured at present value of the amounts expected to be paid when the liabilities aresettled using the remuneration rate expected to apply at the time of settlement.

At each reporting date, the Council reviews the carrying value of its assets to determine whether there is any indication thatthese assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of theasset's fair value less costs to sell and value in use, is compared to the assets carrying value. Any excess of the assetscarrying value over its recoverable amount is expensed to the comprehensive income statement, unless the asset is carriedat the revalued amount in which case, the impairment loss is recognised directly against the revaluation surplus in respect ofthe same class of asset to the extent that the impairment loss does not exceed the amount in the revaluation surplus for thatsame class of asset.

Borrowings are initially measured at fair value, being the cost of the interest bearing liabilities, net of transaction costs. Themeasurement basis subsequent to initial recognition depends on whether the Council has categorised its interest-bearingliabilities as either financial liabilities designated at fair value through the profit and loss, or financial liabilities at amortisedcost. Any difference between the initial recognised amount and the redemption value is recognised in net result over theperiod of the borrowing using the effective interest method. The classification depends on the nature and purpose of theinterest bearing liabilities. The Council determines the classification of its interest bearing liabilities at initial recognition.

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

Amounts received as deposits and retention amounts controlled by Council are recognised as Trust funds until they arereturned, transferred in accordance with the purpose of the receipt, or forfeited (refer to note 24).

Liability for long service leave (LSL) is recognised in the provision for employee benefits.Current Liability - unconditional LSL is disclosed as a current liability even when the council does not expect to settle theliability within 12 months because it will not have the unconditional right to defer settlement of the entitlement should anemployee take leave within 12 months.

The components of this current liability are measured at :- present value - component that is not expected to be settled within 12 months.- nominal value - component that is expected to be settled within 12 months.

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

The calculation of employee benefits includes all relevant on-costs and are calculated as follows at reporting date.

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


64 Page 6



(r) Employee costs and benefits (cont.)

Classification of employee costs

(s) Leases

Operating leases

(t) Goods and Services Tax (GST)

(u) Financial guarantees

(v) Contingent assets and contingent liabilities and commitments

(w) Pending accounting standards

(x) Rounding

Figures in the financial statement may not equate due to rounding.

This non-current LSL liability is measured at present value.

Unless otherwise stated, amounts in the financial report have been rounded to the nearest thousand dollars.

Non-current liability - conditional LSL that has been accrued, where an employee is yet to reach a qualifitying term ofemployment, is disclosed as a non-current liability. There is an unconditional right to defer settlement of the entitlement untilthe employee has completed the requisite years of service.

Certain new AAS's have been issued that are not mandatory for the 30 June 2016 reporting period. Council has assessedthese pending standards and has identified that no material impact will flow from the application of these standards in futurereporting periods.

Financial guarantee contracts are not recognised as a liability in the balance sheet unless the lender has exercised their rightto call on the guarantee or Council has other reasons to believe that it is probable that the right will be exercised. Details ofguarantees that Council has provided, that are not recognised in the balance sheet are disclosed at Note 33 contingentliabilities and contingent assets.

Contingent assets and contingent liabilities are not recognised in the Balance Sheet, but are disclosed by way of a Note and,if quantifiable, are measured at nominal value. Contingent assets and liabilities are presented inclusive of GST receivable orpayable respectively.

Commitments are not recognised in the Balance Sheet. Commitments are disclosed at their nominal value by way of Noteand presented and inclusive of the GST payable.

Cash flows are presented in the Statement of Cash Flows on a gross basis, except for the GST component of investing andfinancing activities, which are disclosed as operating cash flows.

Lease payments for operating leases are required by the accounting standard to be recognised on a straight line basis,rather than expensed in the years in which they are incurred.

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is notrecoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition ofthe asset or as part of an item of the expense. Receivables and payables in the balance sheet are shown inclusive of GST.


65


Page 1


Note 2 Budget Comparison

(a) Income and Expenditure

Budget Actual

2016 2016 2016 2016

$'000 $'000 $'000 % Ref

32,802 33,096 294 0.9%1,123 1,369 246 21.9% 1

16,418 16,213 (205) (1.2%)12,476 11,662 (814) (6.5%)2,660 5,770 3,110 116.9% 21,312 1,664 352 26.8% 35,000 7,936 2,936 58.7% 4

(1,165) (548) 617 53.0% 50 54 54 0.0%

804 897 93 11.6%71,430 78,113 6,683 9.4%

(29,194) (30,013) (819) (2.8%)(22,292) (24,331) (2,039) (9.1%)

(16) (210) (194) (1,212.5%) 6(10,000) (10,166) (166) (1.7%)

(687) (601) 86 12.5%(748) (743) 5 0.7%

(62,937) (66,064) (3,127) (5.0%)

8,493 12,049 3,556 41.9%

(i) Explanation of material variances

Var Item Explanation

Ref

1

2

3

45

6

Due to a change in accounting policy (moving from cash to accrual accounting) statutory fines have increased above what was budgeted.

The variance relates to a number of projects that were budgeted for in prior years. These include the Warrnambool Airport upgrade $1.6m, North Warrnambool Flood Mitigation $1.0m and Horne Rd Industrial Park $0.5m.A development contribution was received for the Hopkins Point Road development which was not included in the budget $0.1m and the Government contribution towards maternity leave was higher than budgeted due to more staff being on maternity leave $0.1m.

The budget comparison notes compare Council's financial plan, expressed through its annual budget, with actual performance. The Local Government (Planning and Reporting) Regulations 2014 requires explanation of any material variances. Council has adopted a materiality threshold of 10% and$100,000 where further explanation is warranted. Explanations have not been provided for variations below the materiality threshold unless the varianceis considered to be material because of its nature.

The budget figures detailed below are those adopted by Council on 22 June 2015. The Budget was based on assumptions that were relevant at thetime of adoption of the Budget. Council sets guidelines and parameters for revenue and expense targets in this budget in order to meet Council'splanning and financial performance targets for both the short and long-term. The budget did not reflect any changes to equity resulting from assetrevaluations, as their impacts were not considered predictable.

These notes are prepared to meet the requirements of the Local Government Act 1989 and the Local Government (Planning and Reporting) Regulations

2014.

Variance

Income

Rates and chargesStatutory fees and finesUser feesGrants - OperatingGrants - CapitalContributions - MonetaryContributions - Non-monetaryNet gain/(loss) on disposal of property, infrastructure, plant and equipment Share of net profits/(losses) of associatesOther income

Total income

Expenses

Employee costsMaterials and servicesBad and doubtful debtsDepreciationBorrowing costsOther expenses

Total expenses

Surplus/(Deficit) for the year

The value of gifted assets from subdivisions was greater than budgeted due to higher levels of activity than expected.The amount written back on disposal of roads when replaced during the year was lower than anticipated and more in line with our useful lives estimate.Due to a change in accounting policy (moving from cash to accrual accounting) the write-off of bad debts is higher than budgeted. The amount in 2015/16 also reflects two years of bad debt write-offs.

66

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(b) Capital WorksBudget Actual

2016 2016 2016 2016

$'000 $'000 $'000 % Ref

Property

Land specialised 425 523 (98) (23.1%)

Land improvements 0 38 (38) 0.0%Total Land 425 562 (137) (32.2%)

2,930 2,472 458 15.6%Buildings specialisedBuildings non-specialised Building improvements 0 385 (385) 0.0%

Total Buildings 2,930 2,857 73 2.5%

Total Property 3,355 3,419 (64) (1.9%)

Plant and equipment

Plant, machinery and equipment 1,507 416 27.6% 1Fixtures, fittings and furniture 0 31 (31) 0.0%Computers and telecommunications 1,010 10 1,000 99.0% 2Paintings and exhibits 35 56 (21) (59.5%)Total Plant and Equipment 2,552 1,187 1,365 53.5%

InfrastructureRoads 4,545 (3,341) (73.5%) 3Bridges 0 833 (833) 0.0%Footpaths and cycleways 1,730 438 1,292 74.7% 4Drainage 4,875 1,749 3,126 64.1% 5Recreational, leisure and community facilities 130 37 93 71.5%Parks, open space and streetscapes 0 479 (479) 0.0%Aerodromes 0 483 (483) 0.0%Off street car parks 0 24 (24) 0.0%Other infrastructure 79 55 24 30.7%Total Infrastructure 11,359 11,983 (5.5%)

13,911 13,170 5.3%

Total Capital Works Expenditure 17,266 3.9%

Represented by:

New asset expenditure 1,500 6,613 (5,113) (340.9%) 6Asset renewal expenditure 11,286 8,230 3,056 27.1% 6Asset expansion expenditure 0 490 (490) 0.0% 6Asset upgrade expenditure 4,480 1,978 2,502 55.9% 6Total Capital Works Expenditure 17,266 17,311 (45) (0.3%)

Var Item

ExplanationRef

123

4

5

6

Variance

The variance relates to a number of projects that were budgeted for in prior years. These include the finalisation of Horne Road $1.5m and Aberline Road $0.9m. Additional grant funding was received during the year through roads to recovery and blackspot funding programs $0.7m .Budgeted works for City Centre Renewal did not commence in 2015/16 as planned and now commencing in the 2016/17 financial year.

Simpson Street drainage upgrade stage 2 was originally budgeted for in 2015/16 but this has now been rescheduled to begin in the 2016/17 financial year.During the 2015/16 financial year Council allocated more funds to new projects, specifically the North Warrnambool Flood Mitigation and the purchase of land for carparks and drainage while the renewal expenditure was less due to the staging of Simpson Street drainage upgrade the City Centre Renewal project.

A delay in the delivery of 3 new trucks means these will be recognised in the 2016/17 financial year.Timing of the Flagstaff Hill sound and light show renewal which will now occur in the 2016/17 financial year.

Land non-specialised 458

269


67


Page 1


2016 2015$'000 $'000

Note 3 Rates and charges

Residential 17,625 16,389Municipal charge 4,064 3,814Waste management charge 4,198 3,914Commercial rates 4,371 4,118Vacant Land Rates 864 867Industrial rates 1,531 1,434Urban farm rates 380 370Cultural and recreational land rates 63 59

33,096 30,965

Note 4 Statutory fees and finesParking fines 446 423Animal control 328 372Town planning and building 283 256Health and local laws 137 138Permits and certificates 175 132

1,369 1,321

Note 5 User feesProperty management 658 631Indoor aquatic centre 2,078 2,075Children's services 2,343 2,710Multi purpose sports stadiums 1,062 979Cultural centres 1,327 1,396Regulatory control 1,446 1,486Tourism and promotion 1,848 1,645Foreshore holiday parks 2,828 2,617Livestock Exchange 1,407 1,483Aged services fees 829 863Other fees and charges 387 283

16,213 16,168

Note 6 Grants

Grants were received in respect of the following:Summary of grantsCommonwealth funded grants 2,985 6,456State funded grants 14,447 14,161Total 17,432 20,617

Council uses Capital Improved Value (CIV) as the basis of valuation of all properties withinthe municipal district. The CIV of a property is its imputed market value.

The valuation base used to calculate general rates for 2015/16 was $6.019 billion(2014/2015 $5.993 billion). The 2015/16 rate in the CIV dollar was $0.003666 (2014/15$0.003475).

The date of the latest general revaluation of land for rating purposes within the municipaldistrict was 1 January 2014, the valuation was first applied to the rating periodcommencing 1 July 2014.

68Page 2


2016 2015$'000 $'000

Note 6 Grants (cont.)

Operating Grants

Recurrent - Commonwealth Government Victoria Grants Commission - unallocated 1,415 4,344 Victoria Grants Commission - local roads 320 993 Aged services 240 218 Other 85 60

Recurrent - State Government Port operations 96 86 Employment initiatives 25 43 Economic development 37 25 Family and children 4,711 5,311 Aged services 2,175 2,352 Recreation 155 146 Cultural centres 309 280 Rural access 290 289 Festivals and Events 19 70 Environmental initiatives 62 47 School crossing supervision 107 110 Pension rebate 600 578 Other 174 178

Total recurrent operating grants 10,820 15,130

Non-Recurrent - State Government Economic development 117 159 Family and children 322 410 Aged services 142 88 Festivals and Events 76 0 Infrastructure services 185 122

Total non-recurrent operating grants 842 779Total operating grants 11,662 15,909

Capital Grants

Recurrent - Commonwealth Government Roads to recovery 925 324Recurrent - State GovernmentTotal recurrent capital grants 925 324

Non-recurrent - Commonwealth Government Infrastructure services 0 517Non-Recurrent - State Government Infrastructure services 3,570 3,016 Recreation and culture 467 406 Environmental initiatives 532 325 Family and community 62 0 Other 214 120Total non-recurrent capital grants 4,845 4,384Total capital grants 5,770 4,708

Unspent grants received on condition that they be spent in a specific mannerBalance at start of year 2,090 0Received during the financial year and remained unspent at balance date 877 2,438Received in prior years and spent during the financial year (1,970) (348)Balance at year end 997 2,090


69Page 3


2016 2015

Note 7 Contributions

$'000 $'000

(a) Monetary 1,664 2,214(b) Non-monetary 7,936 2,983

Total contributions 9,600 5,197

Land 418 0Bridges 56 791Roads 3,066 922Kerb & Channel 0 191Drainage 1,353 569Footpaths and cycleways 1,057 335Land under roads 924 175Other 1,062 0

7,936 2,983

Note 8

381 2,029(929) (4,141)(548) (2,112)

Note 9482 49339 2915 376 46

188 186167 121897 912

Note 10 (a)25,291 24,282

711 6351,313 1,2002,440 2,367

258 22330,013 28,707

Note 10 (b)

264 281264 281

0 0

2,164 2,05511 31

2,175 2,086

0 0

Contributions of non-monetary assets were received in relation to the following assetclasses.

Net gain/(loss) on disposal of property, infrastructure, plant and equipment

Proceeds of SaleWritten down value of assets disposedTotal net gain/(loss) on disposal of property, infrastructure, plant and equipment

Other incomeInterest Infrastructure servicesRecreation & cultural programsFamily and communityReimbursementsOther

Employee costsWages and salariesWorkCoverCasual StaffSuperannuationFringe Benefit Tax

SuperannuationCouncil made contributions to the following funds:

Defined benefit fundEmployer contributions to Local Authorities Superannuation Fund (Vision Super)

Employer contributions payable at reporting date

Accumulation fundsEmployer contributions to Local Authorities Superannuation Fund (Vision Super) Employer contributions - other funds

Employer contributions payable at reporting date

Refer to note 32 for further information relating to Council's superannuation obligations


70Page 4


2016 2015$'000 $'000

Note 116,113 7,3762,185 2,1314,046 3,9711,104 1,216

609 9764,945 4,6302,252 2,254

811 689663 728481 528477 459645 735

24,331 25,693

Note 12210 19210 19

Note 131,820 1,9987,017 5,9181,329 1,13310,166 9,049

Note 14601 627601 627

Note 15

42 3964 45

248 267387 364

2 118743 833

Note 16

493 441

493 441

Materials and servicesInfrastructure servicesWaste managementRecreation and cultural servicesChildren's servicesFamily day careCorporate servicesTourism and promotionAged servicesForeshore caravan parksLivestock ExchangeHealth and local lawsOther

Bad and doubtful debtsOther debtors

Depreciation and amortisationPropertyInfrastructurePlant and equipment

Total depreciationIntangible assets

Refer to note 22 for a more detailed breakdown of depreciation charges

Borrowing costsInterest - borrowings

Other expensesAuditors' remuneration - VAGO - audit of the financial statements, performance statement and grant acquittalsAuditors' remuneration - InternalCouncillors' allowancesOperating lease rentalsOther

Investment in associates

Investments in associates accounted for by the equity method are:- Corangamite Regional Library Corporation

Corangamite Regional Library Corporation

BackgroundWarrnambool City Council in conjunction with Colac Otway Shire, Corangamite Shire Council and Moyne Shire Council have an interest in the Corangamite Regional Library Corporation. The Library services much of the population of the South West Victoria and Warrnambool City Council currently has a 38.5% equity interest (38.5% in 2014/15).

Fair value of Council's investment in Corangamite Regional Library Corporation


71Page 5


2016 2015$'000 $'000

Note 16 Investment in associates (cont.)

Council's share of accumulated surplus / (deficit)Council's share of accumulated (deficit) at start of year (390) (179)Reported (deficit) for year 49 (199)Transfers (to) / from reserves 125 (12)Movement in equity share 3 0Council's share of accumulated (deficit) at end of year (213) (390)

Council's share of reservesCouncil's share of reserves at start of year 831 819Transfers (to) / from reserves (125) 12Council's share of reserves at end of year 706 831

Movement in carrying value of specific investmentCarrying value of investment at start of year 441 640Share of surplus/(deficit) for year 49 (199)Share of asset revaluation 0 0Distributions received 0 0Movement in equity share 3 0Carrying value of investment at end of year 493 441

Council's share of contingent liabilities and contingent assets 493 441

Note 17 Cash and cash equivalentsCash on hand 29 18Cash at bank 2,198 5,081Term deposits 1,000 2,000

3,227 7,099

314 215720 791

1,034 1,006

- Resort and recreation reserve- Trust funds and deposits (Note 24)Total restricted fundsTotal unrestricted cash and cash equivalents 4,193 6,093

Intended allocations

- Cash held to fund carried forward capital works 2,513 2,039Total funds subject to intended allocations 2,513 2,039

Refer also to Note 19 for details of other financial assets held by Council.

Note 18 Trade and Other Receivables

CurrentRates debtors 1,107 1,163Other debtors 2,036 2,402Provision for doubtful debts (117) (117)Loans and advances to community organisations 36 28Net GST receivable 396 378Total current trade and other receivables 3,458 3,854

Non-CurrentLoans and advances to community organisations 161 181Total non-current trade and other receivables 161 181Total trade and other receivables 3,619 4,035

Councils cash and cash equivalents are subject to external restrictions that limit amounts available for discretionary use. These include:

Although not externally restricted the following amounts have been allocated for specific future purposes by Council:


72Page 6


2016 2015$'000 $'000

Note 18 Trade and Other Receivables (cont.)

(a) Ageing of Receivables

Current (not yet due) 1,781 1,860Past due by up to 30 days 80 116Past due between 31 and 180 days 107 242Past due between 181 and 365 days 39 121Past due by more than 1 year 20 63

Total trade and other receivables 2,027 2,402

(b) Movement in provisions for doubtful debtsBalance at the beginning of the year 117 10New Provisions recognised during the year 117 117Amounts already provided for and written off as uncollectible (117) (10)Amounts provided for but recovered during the year 0 0Balance at end of year 117 117

Note 19 Other Financial AssetsTerm deposits 9,000 7,000

9,000 7,000

Note 20 InventoriesInventories held for sale 111 118

111 118

Note 21 Other AssetsPrepayments 155 275Accrued income 266 256

Total other assets 421 531

At balance date other debtors representing financial assets were past due but notimpaired. These amounts relate to a number of independent customers for whom there isno recent history of default. The ageing of the Council's trade and other receivables(excluding statutory receivables) was:



Page 1


Note 22 Property, infrastructure, plant and equipment

At Fair Value30 June 2016

AccumulatedDepreciation

WDV30 June 2016

At Fair Value30 June 2015

AccumulatedDepreciation

WDV30 June 2015

Land 161,678 (312) 159,289 (290)Buildings 152,608 (16,678) 155,165 (26,419)Plant and equipment 29,056 (10,293) 28,790 (9,519)Infrastructure 430,089 (101,874) 415,787 (95,182)Works in Progress 2,937 0 1,262 0Total 776,367 (129,157)

161,366 135,930 18,762

328,215 2,937

647,210 760,294 (131,411)

158,998 128,747

19,271 320,605

1,262 628,883

Summary of Works in ProgressOpening

WIP Additions Transfers Write Offs Closing WIP

Buildings 49 278 (49) 0 278Plant and equipment 0 14 0 0 14Infrastructure 1,213 2,645 (1,183) (30) 2,645Total 1,262 2,937 (1,232) (30) 2,937


Page 1


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

Land - specialised Land - non specialised

Land improvements Total Land Buildings -

specialisedBuildings - non

specialisedBuilding

Improvements Total Buildings Work in Progress Total Property

154,043 4,461 786 159,289 146,413 8,373 379 155,165 49 314,5030 0 (24,943) (1,318) (158) (26,418) 0 (26,709)

154,043 4,461(290) (290)

496 158,999 121,470 7,055 221 128,747 49 287,794

523 458 38 1,019 2,109 264 385 2,844 278 4,056418 924 0 1,342 1,010 0 0 1,314 0 2,352

28 0 28 (364) (5,642) 0 (6,310) 0 (5,978)0 0 0 0 (404) 0 0 (404) 0 (404)0 0 0 0 86 0 0 0 (49) 36

941 1,410 38 2,389 2,436 (5,378) 385 (2,556) 229 62

0 0 (22) (22) (1,711) (89) (20) (1,820) 0 (1,842)0 0 0 0 147 0 0 147 0 1470 0 0 0 10,006 1,407 0 11,413 0 11,4130 0 (22) (22) 8,443 1,318 (20) 0 9,718

155,984 5,871 824 161,678 148,848 2,996 764 278 314,565

Land and BuildingsAt fair value 1 July 2015Accumulated depreciation at 1 July 2015

Movements in fair valueAcquisition of assets at fair valueNon-cash contributed assets Revaluation increments/decrementsFair value of assets disposedTransfers

Movements in accumulated depreciation Depreciation Accumulated depreciation of disposals Revaluation increments/decrements

At fair value 30 June 2016Accumulated depreciation at 30 June 2016 0 0 (312) (312) (16,500) (0) (178) 0 (16,990)

512 161,366 132,348 2,996 586

9,740

152,608 (16,678) 135,930 278 297,575



Plant machinery and equipment

Fixtures, fittings and furniture

Computers and telecomms Paintings and exhibits Work in Progress Total plant and

equipment

8,307 5,475 4,052 10,956 0 28,790(4,203) (4,287) (1,030) 0 0 (9,519)

4,104 1,188 3,022 10,956 0 19,271

1,076 31 10 56 14 1,187(887) 0 (21) 0 0 (909)

189 31 (11) 56 14 278

(947) (96) 0 (1,329)540 0 0 556

(406) (96)

(286) 0 16 0

(270) 0 0 (773)

8,496 5,506 4,041 11,012 14 29,069

Plant & EquipmentAt fair value 1 July 2015Accumulated depreciation at 1 July 2015

Movements in fair valueAcquisition of assets at fair valueFair value of assets disposed

Movements in accumulated depreciation Depreciation Accumulated depreciation of disposals

At fair value 30 June 2016Accumulated depreciation at 30 June 2016 (4,609) (4,383) (1,301) 0 0 (10,293)

3,887 1,123 2,740 11,012 14 18,776



Page 1



Roads Bridges Footpaths and cycleways Drainage

Recreational, leisure and community

Parks open spaces and

streetscapesAerodrome Off street car

parksOther

infrastructureWorks in progress

Total Infrastructure

Note 239,047 14,139 44,915 73,211 5,081 9,743 9,417 13,708 6,527 1,213 417,001(38,688) (3,897) (18,413) (19,721) (3,563) (4,681) (944) (2,256) (3,020) 0 (95,182)200,359 10,242 26,502 53,490 1,518 5,062 8,473 11,452 3,507 1,213 321,819

4,340 770 438 1,585 37 460 483 24 55 2,645 10,8363,065 56 1,057 1,353 0 52 0 0 0 0 5,584(508) (35) (24) (20) 0 0 0 0 (34) 0 (621)

0 0 0 0 0 0 0 0 0 (30)0 164 0 19 0 55 0 (1,183)845 64

7,743 855 1,471 3,082 37 531 483 79 21 1,432

(3,928) (156) (966) (766) (182) (405) (206) (218) (168) 0

(30)(36)

15,733

(6,995)224 25 13 8 0 0 0 0 32 0 302

14 0 0 0 0 0 0 (14) 0 0 0(3,690) (131) (758) (182) (405) (206) (232) (136) 0 (6,693)

246,790 14,994 76,293 5,118 10,274 9,900 13,787 6,548 2,645 432,734

InfrastructureAt fair value 1 July 2015Accumulated depreciation at 1 July 2015

Movements in fair valueAcquisition of assets at fair valueNon-cash contributed assetsFair value of assets disposedWork in progress expensed to operating result Transfers

Movements in accumulated depreciation Depreciation Accumulated depreciation of disposals Transfers

At fair value 30 June 2016Accumulated depreciation at 30 June 2016 (42,379) (4,028)

(953)

46,385 (19,365) (20,479) (3,745) (5,086) (1,150) (2,488) (3,156) 0 (101,875)

204,411 10,966 27,020 55,814 1,373 5,188 8,750 11,299 3,392 2,645 330,859

77

Page 1



Valuation of land and buildings

Level 1 Level 2 Level 3$'000 $'000 $'000

Land 0 0 155,012Specialised land 0 5,842Land improvements 0 0 512Heritage buildings 0 0 0Buildings 0 0 2,996Specialised Buildings 0 132,349Buildings improvements 0 0 586Total 0 138,191 159,106

Valuation of infrastructure


Roads 0 0 204,411Bridges 0 0 10,966Footpaths and cycleways 0 0 27,020Drainage 0 0 55,814Recreational, leisure and community facilities 0 0 1,373Parks, open space and streetscapes 0 0 5,188Aerodromes 0 0 8,750Offstreet car parks 0 0 11,299Other infrastructure 0 0 3,392Total 0 0 328,213

An independent valuation of Council’s specialised buildings was performed by SPM Consultants in consultation with Councils Asset Manager Mr John Finnerty. The valuation was performed using either the market based direct comparison method or depreciated replacement cost, adjusted for restrictions in use. The effective date of the valuation is 30 June 2013.

An independent valuation of Council’s specialised land was performed by Preston Rowe Paterson South West Rating (AAPI 62337). The valuation was performed using the market based direct comparison method and adjusted for restrictions in use. The effective date of the valuation is 30 June 2015.

Specialised land is valued at fair value using site values adjusted for englobo (undeveloped and/or unserviced) characteristics, access rights and private interest of other parties and entitlements of infrastructure assets and services This adjustment is an unobservable input in the valuation. The adjustment has no impact on the comprehensive income statement.

Any significant movements in the unobservable inputs for land and land under roads will have a significant impact on the fair value of these assets.

Details of the Council's land and buildings and information about the fair value hierarchy as at 30 June 2016 are asfollows:

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

Details of the Council's infrastructure and information about the fair value hierarchy as at 30 June 2016 are asfollows:

A valuation of infrastructure assets was performed by Mr John finnerty, Manager of Assets with Warrnambool City Council.


78Page 2


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

Valuation of Paintings and exhibits


Paintings & exhibits 0 0 11,011Total 0 0 11,011

Description of significant unobservable inputs into level 3 valuations

2016 2015$'000 $'000

Land under roads 3,144 2,045 Crown land 75,143 76,530 Council freehold land 79,841 77,513 Parks and reserves 0 0Total specialised land 158,128 156,088

Specialised land and land under roads is valued using a market based direct comparison technique. Significant unobservable inputs include the extent and impact of restriction of use and the market cost of land per square metre. The extent and impact of restriction on use varies and results in a reduction to surrounding land values between 70% and 95%. The market value of land varies significantly depending on the location of the land and the current market conditions. Currently land values range between $0.12 and $939 per square metre.

Specialised buildings are valued using a depreciated replacement cost technique. Significant unobservable inputs include the current replacement cost and remaining useful lives of buildings. Current replacement costs is calculated on a square metre basis and ranges from $258 and $3905 per square metre. The remaining useful lives of buildings are determined on the basis of the current condition of buildings and vary from 10 years to 115 years. Replacement costs is sensitive to changes in market conditions, with any increase or decrease in cost flowing through to the valuation. Useful lives of buildings are sensitive to changes in expectations ore requirements that could either shorten or extend the useful lives of buildings.

Infrastructure assets are valued based on the deprecated replacement cost. Significant unobservable inputs include the current replacement cost and remaining useful lives of infrastructure. The remaining useful lives of infrastructure assets are determined on the basis of the current condition of the asset and vary from 1 years to 200 years. Replacement cost is sensitive to changes in market condition, with any increase or decrease in cost flowing through to the valuation. Useful l lives of infrastructure are sensitive to changes in use, expectation or requirements that could either shorten or extend the useful lives of infrastructure assts.

Reconciliation of specialised land

Paintings and exhibits consist of Paintings, Other Exhibits and items in the Reference Collection. The valuation wascarried out by Mr Charles Nodrum, Approved Valuer for the Australian Government's Cultural Gifts Program basedon market value.


79

Page 1


2016 2015$'000 $'000

Note 23 Trade and other payables

CurrentTrade payables 625 4,352Net GST payable 184 18Accrued expenses 3,516 890Fire service liability 239 138

4,564 5,398

Note 24 Trust funds and depositsRefundable developer deposits 574 655Fire service levy 0 0Contract retention amounts 9 49Other refundable deposits 137 87Total trust funds and deposits 720 791

Purpose and nature of items

Employee Other TotalNote 25 $'000 $'000 $'000

6,081 0 6,081939 0 939

(1,101) 0 (1,101)

318 0 3186,237 0 6,237

5,682 0 5,6822,124 0 2,124

(2,072) 0 (2,072)

347 0 3476,081 0 6,081

(a) Em

ployee benefits

Employee provisionsCurrent provisions expected to be wholly settled within 12 monthsAnnual leave 1,878 1,792Long service leave 451 354

2,329 2,146

Current provisions expected to be wholly settled after 12 monthsAnnual leave 214 342Long service leave 3,125 3,070

3,339 3,412Total current employee provisions 5,668 5,558

Non-currentLong service leave 569 523Total non-current employee provisions 569 523

Aggregate carrying amount of employee benefits:Current 5,668 5,558Non-current 569 523

6,237 6,081

Balance at the end of the financial year

Refundable deposits - Deposits are taken by council as a form of surety in a number of circumstances, including in relation to building works, tenderdeposits, contract deposits and use of civic facilities.

Fire Service Levy - Council is the collection agent for fire services levy on behalf of the State Government. Council remits amounts received on a quarterlybasis. Amounts disclosed here will be remitted to the State Government in line with that process.

Retention Amounts - Council has a contractual right to retain certain amounts until a contractor has met certain requirements or a related warrant or defectperiod has elapsed. Subject to the satisfactory completion of the contractual obligations, or the elapsing of time, these amounts will be paid to the relevantcontractor in line with Council's contractual obligations.

Increase in the discounted amount arising because of time and the effect of any change in the discount rate

Additional provisions

Provisions2016Balance at beginning of the financial yearAdditional provisionsAmounts used

Balance at the end of the financial year

Balance at beginning of the financial year2015

Amounts usedIncrease in the discounted amount arising because of time and the effect of any change in the discount rate.

2016 2015$'000 $'000


80

Page 2


2016 2015$'000 $'000

Note 26

CurrentBorrowings - secured (1) 1,985 1,764

1,985 1,764Non-currentBorrowings - secured (1) 7,915 8,896

7,915 8,896Total 9,900 10,660

(1) Borrowings are secured over councils rate revenue

(a) The maturity profile for Council's borrowings is:Not later than one year 1,985 1,764Later than one year and not later than five years 5,659 6,250Later than five years 2,256 2,646

9,900 10,660

Note 27 Balance at beginning of

reporting period

Increment (decrement)

Balance at end of reporting period

(a) Asset revaluation surplus $'000 $'000 $'000

PropertyLand 124,035 28 124,063Buildings 93,774 5,407 99,181

217,809 5,435 223,244InfrastructureRoads 156,007 0 156,007Bridges 3,501 0 3,501Footpaths and cycleways 0 0 0Drainage 21,218 0 21,218Recreational, leisure and community facilities 0 0 0Waste Management 0 0 0Parks, open space and streetscapes 0 0 0Corangamite Regional Library Corporation 706 0 706Artworks 1,585 0 1,585Other infrastructure 29,041 0 29,041

212,058 0 212,058Total asset revaluation surplus 429,867 5,435 435,302

PropertyLand 139,337 (15,302) 124,035Buildings 93,774 0 93,774

233,111 (15,302) 217,809InfrastructureRoads 156,007 0 156,007Bridges 3,445 56 3,501Footpaths and cycleways 0 0 0Drainage 13,146 8,072 21,218Recreational, leisure and community facilities 0 0 0Waste Management 0 0 0Parks, open space and streetscapes 0 0 0Corangamite Regional Library Corporation 706 0 706Artworks 1,588 0 1,588Other infrastructure 29,041 0 29,041

203,933 8,128 212,061Total asset revaluation surplus 437,044 (7,174) 429,870

The asset revaluation reserve is used to record the increased (net) value of Councils assets over time.

2015

Reserves

2016

Corangamite Regional Library Reserve recognises the fair value of revalued assets in this library.

Interest-bearing loans and borrowings


81

Page 3


Note 27 Balance at beginning of

reporting period

Increment (decrement)

Balance at end of reporting period

(b) Other reserves $'000 $'000 $'000

creditMain drainage fund 1,187 (508) 679debitCommitted reserve 2,907 1,046 3,953debitHeritage restoration fund 42 1 43debitInsurance claims reserve 90 0 90debitInformation technology reserve 131 0 131debitArt gallery reserve 43 1 44debitResort and recreation reserve 215 99 314creditCar park fund 755 (275) 479debitNorth of the merri developer contribution reserve 363 0 363debitHopkins point road developer contribution reserve 0 128 128

Total other reserves 5,733 492 6,224

Main drainage fund 1,466 (279) 1,187Committed reserve 2,459 448 2,907Heritage restoration fund 41 1 42Insurance claims reserve 90 0 90Information technology reserve 39 92 131Art gallery reserve 42 1 43Resort and recreation reserve 187 28 215Car park fund 1,406 (651) 755Developer contributions 0 363 363Total other reserves 5,730 3 5,733

Main Drainage Fund is maintained specifically for future major drainage works.Committed Reserve is specifically for predetermined works and Councils small infrastructure fund.Heritage Restoration Fund is maintained specifically to grant loans for heritage works.Insurance Claims Reserve is maintained specifically for Council's self-insurance.Information Technology Reserve is maintained specifically for major information technology upgrades.Art Gallery Reserve is maintained specifically for the purchase of art pieces.Resort and Recreation Reserve is maintained specifically for public open space works.Car Park Fund is maintained specifically for future major car park works.North of the Merri Developer Contributions Reserve is maintained specifically for contributions held in this growth area.Hopkins Point Road Reserve Developer Contribution Reserve is maintained specifically for contributions held for in this growth area.

2016 2015Note 28 $'000 $'000

Surplus/(deficit) for the year 12,044 7,941

Depreciation/amortisation 10,166 9,049Profit / (loss) on disposal of property, infrastructure, plant & equipment 548 2,112Contributions - Non-monetary assets (7,936) (2,983)Share of net profit/(loss) of associates (49 ) 199

Change in assets and liabilities:(Increase)/decrease in trade & other receivables 434 (549)(Increase)/decrease in prepayments 120 93(Increase)/decrease in accrued income (10) (8)(Increase)/decrease in inventories 7 0Increase/(decrease) in trust deposits (71) (153)Increase/(decrease) in trade & other payables (3,626) 351Increase/(decrease) in provisions 157 399Increase/(decrease) in accrued expenses 2,477 174

Net cash provided by/(used in) operating activities 14,261 16,625

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

2016

Reserves (cont.)

2015

Page 4


2016 2015$'000 $'000

Note 29200 200113 0

Financing arrangements Bank overdraft facility Credit card facilities

Total facilities 313 200

Used facilities 0 0Unused facilities 313 200


82


Page 1


Note 30 CommitmentsThe Council has entered into the following commitments.

No later than 1 year

Later than 1 year and not later than 2 years

Later than 2 years and not

later than 5 years

Later than 5 years

Total

$'000 $'000 $'000 $'000 $'000

OperatingRecycling 378 393 771Waste collection 779 810 1,589Cleaning services 257 261 265 783Security Services 123 126 128 377Internal Audit 24 24Meals for delivery 248 252 256 755Total 1,809 1,842 649 0 4,299

CapitalInformation Technology 1,735 1,735Fleet 435 435Roads 50 50Drainage 1,208 1,208Total 3,428 0 0 0 3,428

OperatingRecycling 363 378 393 0 1,134Waste collection 749 779 810 0 2,338Cleaning services 153 158 0 0 311Security Services 79 0 0 0 79Internal Audit 57 0 0 0 57Total 1,401 1,315 1,203 0 3,919

CapitalInfrastructure 1,642 0 0 0 1,642Buildings 0 0 0 0 0Roads 0 0 0 0 0Drainage 0 0 0 0 0Total 1,642 0 0 0 1,642

2016

2015

83

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2016 2015$'000 $'000

Note 31 Operating lease commitments

Not later than one year 298 271Later than one year and not later than five years 591 425

889 696

Note 32 Superannuation

Accumulation

Defined Benefit

At the reporting date, the Council had the following obligations under non-cancellable operating leases for the lease of equipment and land andbuildings for use within Council's activities (these obligations are notrecognised as liabilities):

Funding arrangementsCouncil makes employer contributions to the Defined Benefit category of the Fund at rates determined by the Trustee on the advice of the Fund Actuary.

As at 30 June 2015, an interim actuarial investigation was held as the Fund provides lifetime pensions in the Defined Benefit category. The vested benefit index (VBI) of the Defined Benefit category of which Council is a contributing employer was 105.8%. To determine the VBI, the Fund Actuary used the following long-term assumptions:Net investment returns 7.00%paSalary information 4.25%paPrice inflation (CPI) 2.75%pa

Vision Super has advised that the VBI at 30/06/16 was 105.8%. The VBI is to be used as the primary funding indicator. Because the VBI was above 100%, the 2015 interim actuarial investigation determined the Defined Benefit category was in a satisfactory financial position and that no change was necessary to the Defined Benefit category’s funding arrangements from prior years.

Council makes the majority of its employer superannuation contributions in respect of its employees to the Local Authorities Superannuation Fund (the Fund). This Fund has two categories of membership, accumulation and defined benefit, each of which is funded differently. Obligations for contributions to the Fund are recognised as an expense in Comprehensive Income Statement when they are made or due.

The Fund’s accumulation category, Vision Super Saver, receives both employer and employee contributions on a progressive basis. Employer contributions are normally based on a fixed percentage of employee earnings (for the year ended 30 June 2016, this was 9.5% required under Superannuation Guarantee Legislation (for 2014/15, this was 9.5%)).

Council does not use defined benefit accounting for its defined benefit obligations under the Fund's Defined Benefit category. This is because the Fund's Defined Benefit category is a pooled multi-employer sponsored plan.

There is no proportional split of the defined benefit liabilities, assets or costs between the participating employers as the defined benefit obligation is a floating obligation between the participating employers and the only time that the aggregate obligation is allocated to specific employers is when a call is made. As a result, the level of participation of the Council in the Fund cannot be measured as a percentage compared with other participating employers. Therefore, the Fund Actuary is unable to allocate benefit liabilities, assets and costs between employers for the purposes of AASB 119.


84Page 2


Note 32 Superannuation (cont.)

Employer contributions

Regular contributions

Funding calls

2015 Interim actuarial investigation surplus amounts

A VBI surplus of $130.8 million; andA total service liability surplus of $239 million.

Due to the nature of the contractual obligations between the participating employers and the Fund, and that the Fund includes lifetime pensioners and their reversionary beneficiaries, it is unlikely that the Fund will be wound up. If there is a surplus in the Fund, the surplus cannot be returned to the participating employers. In the event that a participating employer is wound-up, the defined benefit obligations of that employer will be transferred to that employer’s successor.

The Fund’s interim actuarial investigation as at 30 June 2015 identified the following in the Defined Benefit category of which Council is a contributing employer:

The VBI surplus means that the market value of the fund’s assets supporting the Defined Benefit obligations exceed the vested benefits that the defined benefit members would have been entitled to if they had all exited on 30 June 2015. The total service liability surplus means that the current value of the assets in the Fund’s Defined Benefit category plus expected future contributions exceeds the value of expected future benefits and expenses. Council was notified of the 30 June 2015 VBI during August 2015.

On the basis of the results of the 2015 interim actuarial investigation conducted by the Fund Actuary, Council makes employer contributions to the Fund’s Defined Benefit category at rates determined by the Fund’s Trustee. For the year ended 30 June 2016, this rate was 9.5% of members' salaries (9.5% in2014/15). This rate will increase in line with any increase to the contribution rate. In addition, Council reimburses the Fund to cover the excess of the benefits paid as a consequence of retrenchment above the funded resignation or retirement benefit.

If the Defined Benefit category is in an unsatisfactory financial position at actuarial investigation or the Defined Benefit category‘s VBI is below its shortfall limit at any time other than the date of the actuarial investigation, the Defined Benefit category has a shortfall for the purposes of SPS 160 and the Fund is required to put a plan in place so that the shortfall is fully funded within three years of the shortfall occurring. The Fund monitors its VBI on a quarterly basis and the Fund has set its shortfall limit at 97%.

In the event that the Fund Actuary determines that there is a shortfall based on the above requirement, the Fund’s participating employers (including the Council) are required to make an employer contribution to cover the shortfall. Using the agreed methodology, the shortfall amount is apportioned between the participating employers based on the pre-1 July 1993 and post-30 June 1993 service liabilities of the Fund’s Defined Benefit category, together with the employer’s payroll at 30 June 1993 and at the date the shortfall has been calculated.


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Note 33 Contingent liabilities and contingent assets

Original Loan$'000

2016$'000

2015$'000

(i) City Memorial Bowls Club 2,000 8 635Commonwealth Bank

2,000 8 635

The Council is unaware of any issues at balance date that would give rise to a contingent liability. The Councilacts as guarantor in respect of bank loans provided to the following clubs and community groups:

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Note 34 Financial Instruments

(a) Objectives and policies

(b) Market risk

Interest rate risk

(c) Credit risk

The Council's principal financial instruments comprise cash assets, term deposits, receivables (excluding statutoryreceivables), payables (excluding statutory payables) and bank borrowings. Details of the significant accountingpolicies and methods adopted, including the criteria for recognition, the basis of measurement and the basis onwhich income and expenses are recognised, in respect of each class of financial asset, financial liability and equityinstrument is disclosed in Note 1 of the financial statements. Risk management is carried out by seniormanagement under policies approved by the Council. These policies include identification and analysis of the riskexposure to Council and appropriate procedures, controls and risk minimisation.

Market risk is the risk that the fair value or future cash flows of our financial instruments will fluctuate because ofchanges in market prices. The Council's exposures to market risk is primarily through interest rate risk with onlyinsignificant exposure to other price risks and no exposure to foreign currency risk.

Interest rate risk refers to the risk that the value of a financial instrument or cash flows associated with theinstrument will fluctuate due to changes in market interest rates. Council's interest rate liability risk arises primarilyfrom long term loans and borrowings at fixed rates which exposes Council to fair value interest rate risk / Councildoes not hold any interest bearing financial instruments that are measured at fair value, and therefore has noexposure to fair value interest rate risk. Cash flow interest rate risk is the risk that the future cash flows of a financialinstrument will fluctuate because of changes in market interest rates. Council has minimal exposure to cash flowinterest rate risk through its cash and deposits that are at floating rates.

Interest rate movements have not been sufficiently significant during the year to have an impact on the Council'syear end result.

Investment of surplus funds is made with approved financial institutions under the Local Government Act 1989.Council manages interest rate risk by adopting an investment policy that ensures:

- diversification of investment product;- monitoring of return on investment; and- benchmarking of returns and comparison with budget.

There has been no significant change in the Council's exposure, or its objectives, policies and processes formanaging interest rate risk or the methods used to measure this risk from the previous reporting period.

Credit risk is the risk that a contracting entity will not complete its obligations under a financial instrument andcause Council to make a financial loss. Council have exposure to credit risk on some financial assets included inour balance sheet. To help manage this risk:

- Council have a policy for establishing credit limits for the entities Council deal with;- Council may require collateral where appropriate; and- Council only invest surplus funds with financial institutions which have a recognised credit ratingspecified in Council's investment policy.

Receivables consist of a large number of customers, spread across the ratepayer, business and government sectors. Credit risk associated with the Council's financial assets is minimal because the main debtor is secured by a charge over the rateable property.There are no material financial assets which are individually determine to be impaired.

Council may also be subject to credit risk for transactions which are not included in the balance, sheet, such as when Council provide a guarantee for another party. Details of our contingent liabilities are disclosed in note 33.

The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the balance sheet and notes to the financial statements. Council does not hold any collateral.


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Note 34 Financial Instruments (cont.)

(d) Liquidity risk

(e) Fair value

(f) Sensitivity disclosure analysis

- A parallel shift of 1% and -1% in market interest rates (AUD) from year-end rates of 2.0%.

Liquidity risk includes the risk that, as a result of Council's operational liquidity requirements it will not havesufficient funds to settle a transaction when required or will be forced to sell a financial asset at below value or maybe unable to settle or recover a financial asset.

To help reduce these risks Council:- have a liquidity policy which targets a minimum and average level of cash and cash equivalents to

be maintained;- have readily accessible standby facilities and other funding arrangements in place;- have a liquidity portfolio structure that requires surplus funds to be invested within various bands of

liquid instruments;- monitor budget to actual performance on a regular basis; and- set limits on borrowings relating to the percentage of loans to rate revenue and percentage ofloan principal repayments to rate revenue.

Taking into account past performance, future expectations, economic forecasts, and management's knowledgeand experience of the financial markets, Council believes the following movements are "reasonably possible" overthe next 12 months:

Fair value hierarchyCouncil's financial assets and liabilities are not valued in accordance with the fair value hierarchy, Council's financialassets and liabilities are measure at amortised cost.

These movements will not have a material impact on the valuations of Council's financial assets and liabilities, norwill they have a material impact on the results of Council's operations.

The Councils maximum exposure to liquidity risk is the carrying amounts of financial liabilities as disclosed on the face of the balance sheet and the amounts related to financial guarantees disclosed in Note 33, and is deemed insignificant based on prior periods' data and current assessment of risk.

There has been no significant change in Council's exposure, or its objectives, policies and processes for managing liquidity risk or the methods used to measure this risk from the previous reporting period.With the exception of borrowings, all financial liabilities are expected to be settled within normal terms of trade. Details of the maturity profile for borrowings are disclosed at note 26.Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.


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Note 35 Related party transactions

(i) Responsible persons

Councillors Councillor Kylie Gaston (Mayor) Councillor Michael Neoh Councillor Rob Askew Councillor Jacinta Ermacora Councillor Peter Hulin Councillor Brian Kelson Councillor Peter Sycopoulis

Chief Executive Officer Bruce Anson

(ii) Remuneration of responsible persons

2016No.

2015No.

$20,000 - $29,999 4 6 $40,000 - $49,999 1 0 $60,000 - $69,999 1 0 $70,000 - $79,999 1 1 $290,000 - $299,999 0 1 $300,000 - $309,999 1 0

8 8

540 525

2016No.

2015No.

Income Range: $30,000 - $39,999 1 0 $120,000 - $129,999 1 0 $130,000 - $139,999 1 1 $140,000 - $149,999 0 1 $150,000 - $159,999 2 0 $160,000 - $169,999 1 0 $170,000 - $179,999 0 1 $180,000 - $189,999 0 1 $190,000 - $199,999 1 1 $200,000 - $209,999 0 1 $390,000 - $399,999 * 1 0

8 6

1,343 1,007

*

Names of persons holding the position of a Responsible Person at the Council at any time during the year were:

The numbers of Responsible Officers, whose total remuneration from Council and any related entities, excludingretirement benefits, fall within the following bands:

(iii) Senior Officers Remuneration

(b) whose total annual remuneration exceeds $139,000.

The number of Senior Officers other than the Responsible Persons, are shown below in their relevant income bands:

Total remuneration for the reporting year for responsible persons included above amounted to:

Total Remuneration for the reporting year for Senior Officers included above, amounted to:

As a result of a termination of employment a contractual payment was made in addition to the senior officer's standard entitlements.

A Senior Officer other than a Responsible Person, is an officer of Council who:(a) has management responsibilities and reports directly to the Chief Executive; or


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Note 35 Related party transactions (cont.)

(v) Loans to responsible persons

(vi) Other transactions

Note 36 Events occurring after balance dateNo matters have occurred after balance date that require disclosure in the financial report.

- Cr Ermacora was chairperson of Wannon Water from 1 October 2015

The Council has entered into the above transactions with Responsible Persons and their related parties within the normalcustomer relationships on terms and conditions no more favourable than those available in similar arm's lengthtransactions.

- Cr Askew was a director of Leahy's Home Living Pty Ltd and JJL Properties Pty Ltd and was a related party to theowner of Leahy's Electrical.

During the period Council entered into the following transaction with responsible persons or related parties of responsiblepersons.

- Cr Neoh was the Executive Officer of South West Sports Assembly.

No retirement benefits have been made by the Council to a Responsible Person during the reporting year (2014/15 Nil).

No loans have been made, guaranteed or secured by the Council to a Responsible Person during the reporting year(2014/15 Nil).

(iv) Responsible persons retirement benefits


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Note 37 Port of Warrnambool

2016 2015$'000 $'000

IncomeGrants - operating 96 88User fees 6 5Grants - capital 278 50

Total income 380 143

ExpenditureMaterials and services 213 93Capital expenditure 118 57

Total Expenditure 331 150

Profit/(Loss) 49 (7)

The Council is the Committee of Management for the Port of Warrnambool. The financial transactions have been included in Council's financial statements and are summarised below:

The operation of the Port of Warrnambool is by an agreement between Warrnambool City Council and the Department of Transport, and any assets are returnable on cessation of the agreement.

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Warrnambool City CouncilCertification of the Financial Statements

David Harrington, CAPrincipal Accounting Officer

Date : 24 September 2016Warrnambool

Date : 24 September 2016Warrnambool

Councillor Mike NeohDate : 24 September 2016Warrnambool

Bruce AnsonChief Executive Date : 24 September 2016Warrnambool

In my opinion the accompanying financial statements have been prepared in accordance with the LocalGovernment Act 1989, the Local Government (Planning and Reporting) Regulations 2014, AustralianAccounting Standards and other mandatory professional reporting requirements.

In our opinion the accompanying financial statements present fairly the financial transactions of Warrnambool City Council for the year ended 30 June 2016 and the financial position of the Council as at that date.

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

We have been authorised by the Council and by the Local Government (Planning and Reporting) Regulations 2014 to certify the financial statements in their final form.

Councillor Kylie Gaston

Financial ReportCertification of the Financial Statements