JULY TO DECEMBER 2017 - yarraranges.vic.gov.au · Yarra Ranges Mid Year Report including ... the Lilydale High School-Based Suicide Prevention Project to support and ... Mountain

JULY TO DECEMBER 2017

Warburton Hwy – Warburton

Yarra Ranges Mid Year Report including Finance Report for 1 July to 31 December 2017

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About the Mid Year Report

This Mid Year Report covers the first half of 2017–18. It provides Yarra Ranges’ community, visitors, businesses, service partners and other levels of government with:

an account of Council’s performance including financial performance

how we’ve met our commitments in the Council Plan 2017–21.

Contents

About the Mid Year Report ............................................................................................................ 2

Acknowledgement of Country ....................................................................................................... 2

Copies and Further Information ..................................................................................................... 2

Vision for our Municipality............................................................................................................. 3

Councillor Commitment ................................................................................................................. 3

Our Objectives ............................................................................................................................... 4

Our Performance ........................................................................................................................... 5

Connected and Healthy Communities ............................................................................................ 5

Quality Infrastructure and Liveable Places ..................................................................................... 8

Protected and Enhanced Natural Environment ............................................................................ 10

Vibrant Economy, Agriculture and Tourism .................................................................................. 12

High Performing Organisation ...................................................................................................... 14

Finance Report ............................................................................................................................ 16

Acknowledgement of Country

We respectfully acknowledge the Traditional Owners, The Wurundjeri People as the Custodians of

this land. We also pay respect to all Aboriginal community Elders, past and present, who have

resided in the area and have been an integral part of the history of this region.

Copies and Further Information Copies of the Council Plan and Corporate Action Plan (including the Strategic Resource Plan) are

available as hard copies or online at Council’s website at:

www.yarraranges.vic.gov.au

or phone : 1300 368 333

http://www.yarraranges.vic.gov.au/


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Vision for our Municipality

Whether you live here or visit, you will see how much we value our natural

beauty, how connected our communities are, and how balanced growth makes

this the best place in the world.

Councillor Commitment

We’ll be truthful, represent community’s needs, be positive and responsive and always strive to do better.

Yarra Ranges Councillors

Top, L–R: Cr Len Cox (Mayor), Cr Jim Child, Cr Tim Heenan, Cr Terry Avery, Cr Noel Cliff

Bottom, L–R: Cr Tony Stevenson (Deputy Mayor), Cr Mike Clarke, Cr Richard Higgins, Cr Fiona

McAllister.


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Our Objectives We have five strategic objectives to carry Yarra Ranges forward. These, and the activities we will

complete over the next four years, are a response to the priorities of our community and the Vision

for Yarra Ranges. In some way, all our activities will contribute to one or more of these objectives.

Vibrant economy,

agriculture and

tourism

Our tourism,

agriculture, health,

manufacturing and

other industries are

leading and dynamic.

Strong investment

and attraction

underpins

sustainable

economic growth

and job creation.

Connected and

healthy

communities

Communities are

safe, resilient,

healthy, inclusive

and socially well

connected. Quality

services are

accessible to

everyone.

High performing organisation

An innovative, responsive organisation that listens and delivers quality, value for

money services to our community.

Quality

infrastructure and

liveable places

Quality facilities and

infrastructure meets

current and future

needs. Places are well

planned and are hubs

of activity that foster

wellbeing, creativity

and innovation.

Protected and

enhanced natural

environment

A healthier

environment for

future generations.


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Our Performance

The Council Plan

This key planning document for our four-year electoral term outlines our Strategic Objectives and Major Initiatives.

The Council Action Plan and Strategic Resource Plan

These outline planned key activities and the resources they’ll need over the next four years.

Highlights

Council will continue to report on progress against major initiatives, strategies, performance measures and infrastructure projects at yarraranges.vic.gov.au/bigpicture . We’ll also report back via social media, eNewsletters and Yarra Ranges Local, and in our 2017–18 Annual Report.

Please note progress of key strategies and their performance measures are annual so they’ll feature in our annual report.

http://www.yarraranges.vic.gov.au/


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86% of Council Plan

Actions are on track

Connected and Healthy Communities

Communities are safe, resilient, healthy, inclusive and socially well connected. Quality services are accessible to everyone.

Our major initiatives

1.1 Work with communities to develop community plans, with a focus on building the leadership capacity of community leaders.

Highlights in various regions of the municipality include:

community planning for Montrose community leaders beginning in February

key themes to inform future locality-based planning were generated during a September Community Summit held by the Lilydale Project working group

supported Monbulk and District Community Opportunity Working Group (MADCOW) in developing a project proposal to become an ABCDE learning site that facilitates community connectivity

a December community planning masterclass was run by the ABCD Institute for over 80 community leaders

‘It Takes a Town’ project group spoke with over 100 Healesville High School students to identify their aspirations and goals.

1.2 Advocate for improved public transport that connects residents with services and employment.

Public transport continues as a priority. Our collaborations with other councils as part of the Eastern Transport Coalition (ETC), have produced a list of prioritised transport projects and initiatives. This document will form the basis for a two-year campaign to State and Federal Government for transport improvements across Melbourne's east. A meeting with a Senior Advisor to Minister Allan resulted in a promise to review and respond to ETC’s identified priorities.

1.3 Develop and implement a new Health and Wellbeing Strategy with a focus on healthy eating, active living, reducing family violence, improving mental health and access to services and community, healthy ageing and Indigenous health.

Key strategies to achieve our objectives include:

Health and Wellbeing Strategy

Child and Youth Strategy

Creative Communities Strategy

Reconciliation Framework for Action

Community Safety Strategy

Equity, Access and Inclusion Strategy


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Our Health and Wellbeing Strategy was submitted to the Minister in October 2017. Three major initiative groups have been established to engage key health partners like Eastern Health, EACH and Inspiro, which ensures a coordinated response.

Other highlights include:

the Lilydale High School-Based Suicide Prevention Project to support and improve mental health services for young people

completion of improvement works at the Balmoral Reserve Playground in Kilsyth

installing an ABC radio repeater in Warburton in preparation for the bushfire season

constructing a new footpath on Lancaster Road Mooroolbark

piloting a place-based middle years program in Upper Yarra by implementing a Middle Years Development Index for years 5 and 7

a Middle Years Strategic Action Plan to support and guide the future of children, young people and families

completing the Kalorama Reserve Multi-Purpose Sports Court

the Belgrave Library’s new interactive space

a new footpath at Beaulieu Avenue Reserve in Lilydale and Mooroolbark

influencing the development of the ‘Home for Victoria Strategy’ through advocacy engagement as part of the Eastern Affordable Housing Alliance with community and local Members of Parliament

capturing the views and needs of seniors to inform an Age Friendly Communities Strategic Action Plan

renovating Healesville’s Queens Park cricket nets.


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85% of Council Plan

Actions are on track

Quality Infrastructure and Liveable Places

Quality facilities and infrastructure meet current and future needs. Places are

well-planned hubs of activity that foster wellbeing, creativity and innovation.


2.1 Integrate the management of our assets to ensure the quality of our assets is to an agreed standard that supports our community’s needs.

We’ve updated and adopted Council's Asset Management Policy. It outlines our approach to managing over $1 billion of community assets. Our new centralised model for strategic asset data management significantly progresses our Strategic Asset Management Plan. Both initiatives improve Council’s ability to invest in things that prioritise community outcomes and benefits.

2.2 Undertake a review of the utilisation of Council’s community hubs and facilities to maximise their usage and benefit to the community.

Council provides a number of community hubs, facilities, community halls and public spaces. A current review aims to better understand opportunities to further activate and make use of these. Data is being collected at Neighbourhood Houses and at the U3As and Men's Sheds to profile demand and usage for a broad range of service areas.

2.3 Develop a Transportation Plan with a focus on improved public transport, pressures and freight needs to enable targeted advocacy to State and Federal Government and work in partnership with private industry.

We’re currently developing an Integrated Transport Strategy (ITS) outlining how Council will meet future road management and the objectives of Yarra Ranges’ broader planning priorities. A discussion paper for the development of the strategy will be presented to Council in the coming months.


Recreation and Open Space Strategy Aquatics Facilities Strategy

Asset Management Strategy


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2.4 Advocate for external funding to support improved community infrastructure across the municipality for initiatives including the Warburton Mountain Bike Destination, Yarra Valley Trail, community facilities and hubs upgrades, sporting pavilion upgrades and recreation reserve improvements.

We’ve won State and Federal funding for future facilities and sporting venues. We’ve also secured funding from the State Government’s Growing Suburbs Fund and its Community Infrastructure Fund for the Monbulk Community Sports Pavilion, Kilsyth Centre for Excellence, and the Queen's Park playspace and netball court resurfacing. We’ll continues to push for funding for the Warburton Mountain Bike project and the Yarra Valley Trail project.


commencing project scoping for a Hike and Bike Plan

renovating Healesville’s Queens Park Pavilion kitchen

lighting for Healesville’s Don Road Reserve netball court

implementing three ePlanning modules ‘Track, Enquire and Lodge’ to offer customers a fully digital planning application experience

opening of the Kimberley Place dog agility park

resurfacing and lighting for the Montrose netball court

Moores Road truck turnaround in Monbulk.

For more on our Capital Expenditure Projects visit yarraranges.vic.gov.au/bigpicture

http://www.yarraranges.vic.gov.au/bigpicture


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92%

of Council Plan Actions are on track

Protected and Enhanced Natural Environment A healthier environment for future generations.


3.1 Implement the Environment Strategy to improve the health and biodiversity of our natural environment.

Highlights include:

community engagement through a River to the Bay: Creating Healthy Waterways program, with funding received from Department of Environment, Land, Water and Planning’s Port Phillip Bay Fund; presentations at local festivals and events including the Belgrave Platypus Festival and the recent Platypus awareness evening in Healesville promoted stormwater pollution management

helping local Plastic Bag Free groups conduct five events across the municipality including Belgrave Platypus Festival, Healesville Music Festival, Healesville Market stall and the Mayor’s Big Day Out

weed management training and a digital workshop for property management as part of the Biodiversity Extension program; currently collaborating with Melbourne Water, Cardinia Shire Council, Landcare, and Port Phillip and Westernport Catchment Management Authority for a large conference-style training event in April 2018.


Environmental Strategy

Flora and Fauna Strategy

Weed Management Strategy

Climate Change and Adaptation Plan


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3.2 Improve the parks and reserves program to enhance public open space, access and participation.

Over the past six months we’ve increased our focus on improving sports grounds participation, especially for women and girls. Mapping our Open Space Network provides us with a better understanding of current assets to further increase participation through improving weekly maintenance.


completing Round 2 of Solar Power to Council facilities. A tender awarded will add up to

100kW of solar capacity to around 10 Council-owned sites

engaged 41 private land holders to plan habitat restoration projects with nine schools and

16 Council-managed sites also participating; 65,440 plants planted between autumn and

spring 2017 with 51,152 to be planted in autumn/winter 2018, which will significantly

expand the biodiversity of our municipality.


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100%

of Council Plan Actions are on track

Vibrant Economy, Agriculture and Tourism Our tourism, agriculture, health, manufacturing and other industries are leading and dynamic. Strong investment and attraction underpins sustainable economic growth and job creation.


4.1 Implement the Economic Development Strategy including strong engagement and partnering with Yarra Ranges Tourism, and supporting small, medium and large businesses and industry groups to improve the economic health and vitality of our communities.

Planned initiatives and key strategic projects we’ve progressed include:

a $7.8 million Federal Government commitment for the Coldstream Recycled Water Pipeline

supporting regional tourism project initiatives like the Yarra Valley Trail, Warburton Mountain Bike Destination, RidgeWalk and Yarra Valley Railway

small business support through the Small Business Mentoring program, monthly e-communication on the latest news and programs to help businesses to start and grow, and collaboration on regional business seminars and business events

facilitating investments to offer essential support for developers and business start-ups, which has helped businesses address planning-related matters in a faster, more coordinated way.

4.2 Continue to implement place-making initiatives for Chirnside Park, consistent with the Chirnside Park Urban Design Masterplan, including the Green Spine shared path, development of the Urban Park in Kimberley Drive and facilitation of key redevelopment sites to achieve a vibrant mixed use activity centre.

Place making initiatives are continuing with the support of Council’s Business Investment Officers. Progress includes:

continued liaison with commercial realtors to encourage marketing of key sites and support for investment enquiries

facilitating ongoing development conversations for the Eastridge site; the local food offering in Chirnside Park has been boosted with several new restaurants awarded operation permits

Key strategy to achieve our objectives is:

Economic Development Strategy


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beginning implementation of a developer-funded Chirnside Park Master Plan.

4.3 Develop and implement the Lilydale Project to improve liveability and attract private and public investment into the area.

The development of a Lilydale Place Plan is progressing well with the community visioning phase engaging both public and private stakeholders in exploring new investment and place-making opportunities. A Project Reference Group has been formed. Community endorsement of the plan includes project feasibility, economic impact assessment and place branding – to be presented to Council in November 2018.

4.4 Attract funding for key tourism infrastructure projects with a focus on The RidgeWalk, Warburton Mountain Bike Destination, Yarra Valley Trail and advocacy for Yarra Valley Railway Stage 2 to encourage more nature based tourism opportunities.

Our advocacy over the past six months has resulted in:

RidgeWalk : Federal Government approval; cultural research project completed and consultants will be appointed to complete the Master Plan

Yarra Valley Railway Stage 2 : feasibility study completed; grant from Heritage Victoria to upgrade the water tower; advocacy efforts continue in preparation for the 2018 State Election

Coldstream Recycled Water Pipeline : feasibility study completed along with a Federal funding application; Council is leading the set-up of a legal entity to manage and govern the scheme; meetings with ministers continue in preparation for the 2018 State Election.


a study into the criteria of a municipal-wide Development Contribution Plan to fund future infrastructure needs

developing the Square1 Project in partnership with Maroondah City Council and the Outer Eastern Learn Local Employment Network to support young entrepreneurs

partnership with Yarra Ranges Technical School Reference Group to strengthen students’ employment skills and link education to growing industries through locally-led and operated technical schools

opened the Steels Creek mobile phone tower in August and secured the site for East Warburton; we continue to advocate for Kalorama and Mt Evelyn sites.


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90%

Council Plan Actions are on track

High Performing Organisation An innovative, responsive organisation that listens and delivers quality,

value-for-money services to our community.


5.1 Improve our customers’ experience with Council through the development and implementation of a Customer Experience Strategy, focused on enhancing the customer journey through Council services and processes across all channels, including digital

Work has commenced on an integrated whole-of-organisation set of goals, priorities and actions aimed at creating easy, consistent and high-quality customer experiences for our community.

5.2 Implement a new way of working within an activity-based working environment through our Flexible Future project, to build organisational capability, improve our responsiveness and our adaptability in a changing environment

Our ongoing preparation for the Civic Centre Redevelopment includes a two-year milestone plan for decant and a pilot program. Plans are also underway for seamlessly delivering services in an Activity Based Work Environment. The project team is currently delivering a range of training and readiness activities to prepare employees for a new way of working.

5.3 Deliver opportunities for shared service arrangements with regional Councils to deliver value for money to ratepayers

As a member of the The Eastern Region Procurement Network (ERPN), we continue to achieve significant successes in collaborative tendering.

Over the past six months we’ve collaborated with:

the City of Greater Dandenong and Cardinia Shire Council on facilities maintenance and management services, resulting in a competitive outcome for all three councils; tender included


Customer First Strategy

People and Culture Strategy

Communication Strategy

Information and Communication Technology Strategy

Health and Safety Strategy


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a mandatory requirement for the contractor to employ two new people from local disadvantaged communities

Maroondah, Nillumbik, Frankston and Stonnington councils on a joint Road Pavement Condition and Footpath Condition Survey Services tender to improve standardised services

Manningham Council on a road resurfacing joint tender project.


phase one of the Payroll Service Review, including upgrading our existing Payroll System to be more efficient

celebrating our successes at the Yarra Ranges Employee Excellence Awards in October 2017

commencing an Enterprise System Project to review and refresh Council’s enterprise systems to improve our customer service

whole-of-organisation Child Safe Standards training from August–December 2017 using an e-learning module

commenced six new service reviews, process improvements, or implementation projects to transform how we think, work and deliver

successfully passed a SafetyMap mid-year audit in October 2017.

YARRA RANGES COUNCIL JULY TO DECEMBER 2017

FINANCE REPORT


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INCOME & EXPENDITURE RESULTS

INCOME EXPENDITURE ANALYSIS Year to date variance: Year to date net result is ahead of budget by $304k mainly due to the following transactions: Favourable variances:

Higher Revenue:

Ref # Transaction Amount

Favourable $’000

1 Unbudgeted and earlier than anticipated grant funding and contributions received for capital and operating projects including:

- Belgrave Multi-purpose Health Hub 1,125 - Monbulk Subregional Soccer Centre 200 - Public Open Space contributions 186 - Peri-Urban Weed Management Partnership 54 - Roadside Litter Free Towns Platypus project 16

2 Unbudgeted income received for the sale of 13 Leith Road, Montrose (proceeds to go towards Future Community Fund)

800

3 Better than anticipated income generated for General Rates and Charges 711

4 Unbudgeted Natural Disaster financial assistance for expenditure incurred in 2016-17

613

5 Earlier than anticipated grant funding received for Client Services and Business Performance in Community Support Services

353

6 Higher than anticipated income recorded for contributed assets (non cash) 266

YTD VARIANCE $'000

YTD

Budget

YTD

Actuals

YTD

Variance

Adopted

Budget

Adjusted

Budget

Forecast

to Year

end

Carry fwds.

to 2018-19

Income 158,171 158,440 269 F 183,992 182,342 184,811 2,469 F -

Expenditure (79,620) (79,991) (371) UF (162,441) (164,412) (167,095) (2,683) UF 127

Net gain (loss) on disposal of

property, infrastructure, plant and

equipment (750) (344) 406 F (1,500) (1,500) (1,300) 200 F -

Net Surplus / (Deficit) 77,801 78,105 304 F 20,051 16,430 16,416 (14) UF (127)

Variance - Forecast

to Adjusted

Budget

ANNUAL VARIANCE $'000


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Favourable $’000

7 Unanticipated income received from Victorian Electoral Commission for 2016 Council elections non-voting fines

232

8 Better than anticipated statutory and user fees in Planning Services 214

9 Unanticipated cost recovery income received in insurance claims tor damages to Council property

61

10 Better than anticipated sale of discontinued roads 34

Total 4,865

Lower Expenditure:


Favourable $’000

1 Savings in salaries and wages of $2.96m due to vacant and disestablished positions offset by an increase in agency staff costs of $1.51m in order to continue service delivery due to position vacancies. *See below for details on major variances.

1,450

2 Lower than anticipated bank charges and interest on borrowings 319

3 Lower than anticipated cleaning, utility, security and facility maintenance costs in Property and Facilities Management

260

4 Lower than anticipated reactive road maintenance, waste disposal and electricity costs in Infrastructure Services

163

Total 2,192

Offset by: Unfavourable variances:

Lower Revenue:


Unfavourable $’000

1 Early receipt of 50% of 2017-18 Victorian Grants Commission funding in 2016-17

(3,318)

2 Lower than budgeted grant funding and contributions for capital projects including: - Upwey Reserve Pavilion - Warburton Sports Oval Drainage Upgrade - Coldstream Reserve Netball Courts lighting

(158) (50) (48)

3 Lower than anticipated contributions received for Water Sensitive Urban Design projects

(176)

4 Lower than anticipated income for Special Charges Scheme projects (127)

Total (3,877)

Higher Expenditure:



1 Carried forward or earlier than anticipated expenditure for capital maintenance work mainly in the areas of:


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- Drainage rehabilitation (512) - Footpath rehabilitation (423) - Recreational Facilities including Kilsyth Pool and Yarra Centre (300) - Trail improvements, play spaces, townships and other open space

infrastructure (201)

- Road traffic management and rehabilitation works (123) - Sealed roads repair and patching (115) - Sports Facilities including Queens Park Healesville cricket practice nets (109) - Maintenance works on bridges (67) 2 Higher than budgeted cost of asset disposals (non-cash) (367) 3 Higher expenditure for external servicing in Fleet (partially offset by lower

salaries) (166)

4 Higher than anticipated expenditure on software in Corporate Systems (137) 5 Higher than anticipated depreciation costs (non-cash) (113) 6 Higher than anticipated consultant costs in Youth Planning and Partnerships (109) 7 Higher than anticipated expenditure on minor equipment in IT Hardware (90) 8 Unbudgeted rental expenditure for Lilydale Library (31) Total (2,863)

Other minor variances (13)

Total Year to Date Variances Favourable / (Unfavourable) 304

*Details on year to date major variances for salary savings and agency costs are as follows:

Ref #

Department Salary savings

/ (increases)

Agency costs savings /

(increases)

Net saving / (increase)

$’000 $’000 $’000

1 Built and Active Spaces 272 (175) 97

2 Community Support Services 920 (230) 690

3 Corporate Services Management (3) - (3)

4 Creative Communities 40 (82) (42)

5 Development Services 298 (59) 239

6 Economic, Youth and Community Development 56 2 58

7 Emergency and Community Safety 409 (219) 190

8 Environment and Engineering Management (4) - (4)

9 Financial Services 212 (91) 121

10 Information Services 235 (64) 171

11 Infrastructure Services 244 (342) (98)

12 Innovation and Performance 78 21 99

13 Operations Support 75 (64) 11

14 Maternity leave payments (122) - (122)

15 People and Culture 85 (115) (30)

16 Social and Economic Development Management (14) - (14)

17 Special and Flexible Future projects 154 - 154

18 Strategy and Sustainability 259 (96) 163

19 Higher than anticipated payments made for staff redundancies (total annual budget $750k)

(230) - (230)

Total 2,964 (1,514) 1,450


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Annual Forecast variance to Adjusted Budget

The current annual unfavourable (UF) variance of $14k is due to the following transactions: Favourable variances:

Higher Revenue:


Favourable $’000

1 Unbudgeted income received for the sale of 13 Leith Road, Montrose – Funds to be transferred to the Future Community Fund

800

2 Higher income for Statutory Planning fees 600

3 Higher than anticipated income from Victorian Grants Commission 517

4 Higher than budgeted income generated for General Rates and Charges 480

5 Higher income for traffic signals at Switchback and Victoria Road, Lilydale 322

6 Unbudgeted voting fines received from Victorian Electoral Commission for 2016 Council elections

232

7 Unbudgeted grant funding received for Peri-Urban Weed Management Partnerships and Living Rivers projects

79

8

Unbudgeted and higher than anticipated grant funding and contributions for capital projects including:

- Belgrave South Community Sports Pavilion 200 - Upwey Reserve Pavilion 59

Total 3,289

Lower Expenditure:


Favourable $’000

1 Anticipated savings in printing costs for the Waste Services calendars and booklets

80

2 Lower consultant costs for Records Management in Information Services 50

Total 130

Offset by: Unfavourable variances: Lower Revenue:



1 Reduced income for capital works projects which include: - Boundary - Manestar Roads Bridge Renewal (113) - Warburton Sports oval drainage (90) - Sassafras Stormwater Detention tanks

- Belgrave Multi Purpose Health Hub (76) (65)

Total (344)


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Higher Expenditure:



1 Higher than anticipated expenditure for various drainage rehabilitation works including pipeline patching, lining and structure works

(1,402)

2 Higher than budgeted cost of asset disposals (non-cash) (600)

3 Higher salaries and wages of $79k plus an increase in agency staff costs of $427k in order to continue service delivery due to position vacancies. *See below for details on major variances.

(506)

4 Higher expenditure for trail improvements, non-bushland retaining walls and play spaces

(248)

5 Increased costs for consultants in Youth Planning and Partnerships (181)

6 Higher expenditure for consultants and training in Emergency Management (104)

7 Higher expenditure for Hike and Bike Strategy review (60)

Total (3,101)

Other minor variances 12

Total Year to Date Variances Favourable / (Unfavourable) (14)

** Details on major forecast variances for salaries and agency costs are as follows:

Ref # Department Salary savings /

(increases)

Agency costs savings /

(increases)

Net saving /(increase)

$’000 $’000 $’000

1 Built and Active Spaces 72 (60) 12

2 Community Support Services (202) (162) (364)

3 Economic, Youth and Community Development 35 - 35

4 Financial Services 100 (101) (1)

5 Information Services 137 (80) 57

6 Innovation and Performance 43 - 43

7 Special and Flexible Future projects (57) - (57)

8 Organisational Finance (maternity leave cost) (124) - (124)

9 Strategy and Sustainability (83) (24) (107)

Total (79) (427) (506)


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Movement between Annual Budget (Adopted Budget) and Adjusted Budget:

The unfavourable movement of $3.62m between the Annual Budget and the Adjusted Budget relates mainly to: Favourable variances: Higher Revenue:


Favourable $’000

1 Anticipated income to be received for Natural Disaster financial assistance relating to expenditure incurred in 2016-17

4,443

2 Recognition of the net deficit result of previous years for the Bio Diversity Offsets to be recovered from future years

409

3 Unbudgeted income to be received for capital works projects 473

4 Savings identified as part of the desktop budget review offset by cost pressures and other adjustments

104

Total 5,429

Lower Expenditure:


Favourable $’000

1 Transfer of costs for projects that received funding for future years

127

Total 127

Offset by: Unfavourable variances:

Lower Revenue:



1 Early receipt of 50% of 2017-18 Victorian Grants Commission funding in 2016-17

(6,992)

Total (6,992)

Higher Expenditure:



1 Operational expenditure including grant funded projects which were not expended in 2016-17 and carried forward to 2017-18

(2,102)

2 Transfer of capital expenditure costs to capital maintenance

(63)

3 Training program for child safe standards

(20)

Total (2,185)

Total Year to Date Variances Favourable / (Unfavourable) (3,621)


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DIRECTORATE SUMMARY

This statement reflects the same “bottom line” result as the operating statement but is presented in line with our Directorate structure, along with Organisational Finance and the income and maintenance portion of the Capital Works Program.

Explanation of variances

“F” = Favourable

Actual year to date (YTD) income is greater OR expenditure is less than the YTD Budget amount.

Forecast income to year end is greater OR expenditure is less than adjusted Budget.

“UF” = Unfavourable

Actual YTD income is less OR expenditure is greater than the YTD Budget amount.

Forecast income to year end is less OR expenditure is greater than adjusted Budget.

ANNUAL VARIANCE '000

YTD

Budget

YTD

Actuals

YTD

Variance

Adopted

Budget

Adjusted

Budget

Forecast

to Year

end

Carry

fwds. to

2018-19

Income

Capital maintenance 5,704 6,164 460 F 9,794 10,267 10,683 416 F -

Corporate Serv ices 1,812 2,077 265 F 4,334 4,401 4,634 233 F -

Environment & Engineering 1,411 1,475 64 F 3,123 3,561 3,653 92 F -

Natural Disaster recov & response - 613 613 F - 4,443 4,443 - F -

Organisational Finance 141,651 140,414 (1,237) UF 151,106 144,114 145,941 1,827 F -

Social & economic development 7,842 8,719 877 F 16,134 16,056 16,756 700 F -

158,420 159,462 1,042 F 184,491 182,842 186,110 3,268 F -

Expenditure

Capital maintenance 1,005 2,950 (1,945) UF 2,011 1,998 4,021 (2,023) UF -

Corporate Serv ices 14,713 14,374 339 F 28,127 28,402 28,490 (88) UF -

Environment & Engineering 28,905 28,198 707 F 64,725 65,311 65,339 (28) UF 127

Natural Disaster recov & response 83 126 (43) UF 165 165 165 - F -

Organisational Finance 16,647 17,081 (434) UF 32,532 33,136 33,941 (805) UF -

Social & economic development 19,266 18,628 638 F 36,880 37,400 37,738 (338) UF -

80,619 81,357 (738) UF 164,440 166,412 169,694 (3,282) UF 127

Net Surplus (Deficit) 77,801 78,105 304 F 20,051 16,430 16,416 (14) UF (127)

Variance - Forecast

to Adjusted Budget

YTD VARIANCE '000


Page 24

DIRECTORATE SUMMARY (CONTINUED)

For specific detail on these variances, please refer to Appendix A.


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CAPITAL WORKS YTD AND YEAR END FORECAST VARIANCES

The graph below shows the YTD and forecast Capital Works expenditure for 2017-18 in comparison to previous years and carry forwards. Capital Works are currently forecasting spend of $49.2m for the year which includes carry forwards of $13.1m from 2016-17. It has been identified that $12.3m will be carried forward to 2018-19. The projects to be carried forward to 2018-19 include:

Civic Centre Redevelopment project - $4.65m

Future Community Projects – Implementation - $1.87m

Plant & Equipment Replacement - $1.1m

Steels Creek Rd Renewal - $894k

Chirnside Park Major Activity Centre - $800k

Community Sporting Pavilion Kilsyth - $750k

Wandin Creek Road Special Charge Scheme project - $489k

Queens Park Regional Playground - $341k

Yarra Valley Trail Design - $250k

Community Recreation Precinct Development Warburton - $220k

Martin Street Road Improvement Special Charge Scheme (Belgrave) - $181k

Coldstream West Road Rehabilitation - $179k

Other projects - $546k

% Variances from actual spend as at the end of December 2017 are:

Forecast of $49.2m 29%

Adopted budget of $46.3m 31%

Adjusted budget of $61.6m 23%

For details, please refer to Appendix D: Capital Works Report


Page 26

CAPITAL WORKS REQUESTS FOR FUNDING TRANSFERS

From time to time, it is necessary to transfer (all or part of) an approved income or expenditure budget from one project to another. Reasons could include: budgets held in block funding accounts being distributed to specific projects, newly created projects, previously unanticipated projects being funded or over expenditure on one project being off-set by savings in another project.

Any budget transfers that represent a significant change to the Capital Works Program budget or asset class require Council approval. Such changes may include the reassignment of budgets for cancelled projects published in the Capital Works Program, the transfer of project funds carried forward from the previous year to a different project, or the transfer of funds allocated for renewal works to non-renewal projects.

Approval is sought to allocate funding to the following projects:


Page 27

BORROWINGS

Council has budgeted to borrow $5.1m in 2017-18. The timing of the borrowing will be dependent on the delivery of the Capital Works Program. Council’s debt position as at the end of December 2017 is represented in the graph below:


Page 28

INVESTMENTS

As at the end of December 2017, investments of $47.3m were held in various short term cash deposits as identified in the chart below:

Rate Arrears (includes Special Rates and Charges)

The amount outstanding for Receivables - Property in the balance sheet is $107.1m. This amount consists of Rates and Charges of $97.0m, Fire Services Levy of $9.5m and the balance of $0.6m relates to resident contributions for Street and Road Schemes.

The following table details the total rates outstanding as at 31 December 2017:

For further information on rate debtors, please refer to Appendix C.

$' Million $' Million

Current 17-18: Rates 83.6

Interest -

Legal costs on current - 83.6

Outstanding: Arrears 11.8

Interest 1.1

Legal costs on arrears 0.5 13.4

Total Rates and Charges Outstanding 97.0

Total Rates and Charges Outstanding as at 31 December 2017


Page 29

Debtors (excluding Rates) age analysis:

Sundry Debtors

Sundry debtors include:

Aged and Disability Services $162k;

Sherbrooke Child Care Centre $39k;

Fire hazards and penalty charges charged against the property $213k and $909k respectively;

$259k from Sports and Recreation Victoria for Belgrave South Community Sports Pavilion;

$160k contribution from CSR Limited for Cloverlea Subdivision traffic lights;

$108k from Department of Infrastructure for netball court lighting at Montrose Recreation Reserve and Queens Park sports pavilion;

$33k from Lend Lease for Native Vegetation Offset Credits;

$25k contributions from Melbourne Water for Living Rivers initiates; and

$17k contribution from Valuer-General Victoria for Council’s supplementary administrative costs.

Category Current >30 days >90 days >180 days Total

($'000) ($'000) ($'000) ($'000) ($'000)

Animal control 16 35 57 529 637

Local Laws infringements - - 1 45 46

Parking infringements 5 23 24 352 404

Planning 1 1 1 7 10

Environment Compliance 96 1 1 396 494

Health debtors - 171 - 71 242

Sundry debtors 496 207 206 1,316 2,225

GST receivable and other debtors 1,341 - - - 1,341

Total 1,955 438 290 2,716 5,399


Page 30

Appendix A – Directorate Analysis

Corporate Services ($604k favourable) Major YTD variances include the following:

o Emergency and Community Safety: Savings in salaries of $409k has been offset by lower than anticipated legal cost recovery in Parking Infringements of $27k, higher than anticipated expenditure on consultants of $26k and an increase in agency staff expenditure of $219k.

o People and Culture: Savings in salaries of $85k has been offset by an increase in agency staff expenditure of $115k.

o Information Services: Savings in salaries of $235k and lower printing charges in Office Automation of $44k have been offset by higher than anticipated expenditure on software maintenance in Corporate Systems of $106k, consultants in Systems and Reporting of $27k, minor equipment purchases in Office Automation of $90k and agency staff expenditure of $64k.

o Innovation and Performance: Savings in salaries of $78k and lower agency staff costs of $21k.

o Financial Services: Savings in salaries of $212k, unanticipated income of $232k received from Victorian Electoral Commission for 2016 Council elections non-voting fines and unanticipated Insurance claims for Council property damage of $61k have been offset by agency staff expenditure of $91k.


Page 31

Appendix A (contd.)

Environment and Engineering ($771k favourable) Major YTD variances include the following:

o Infrastructure Services: Savings in salaries of $244k have been offset by an increase in agency staff costs of $342k. Lower expenditure for reactive road maintenance of $62k, gross pollutant trap cleaning of $53k, line marking of $25k, street light electricity of $23k and Shire after hours service contractors’ costs of $46k.

o Built and Active Spaces: Savings in salaries of $272k, due to vacant positions and the transfer of one position into the Community Partnerships and Wellbeing team (Social and Economic Development) have been offset by an increase in agency staff costs of $175k. Costs for cleaning $130k, water $104k (both in Council facilities and parks) and facilities maintenance $98k and park maintenance $25k are currently under budget.

o Strategy and Sustainability: Savings in salaries of $248k have been offset by an increase in agency staff costs of $96k, unbudgeted grant funding received for Peri-Urban Weed Management partnerships of $54k, Roadside Litter Free Towns Platypus project of $16k and Living Rivers initiatives of $10k. Higher expenditure for external servicing of $166k has been offset by lower expenditure on fuel $18k, road tolls $4k, consultants $28k, program activities $30k, recycling collection $23k and green waste collection $29k.

o Operations Support: Savings in salaries and wages of $75k due to vacant positions have been offset by an increase in agency staff of $64k.


Page 32

Appendix A (contd.)

Social and Economic Development ($1.5m favourable) Major YTD variances include the following:

o Community Support Services: Savings in salaries of $920k and higher grant funding of $353k for Direct Care Service have been offset by higher agency staff costs of $230k.

o Creative Communities: Savings in salaries of $40k, higher than anticipated rental income from Museum Café of $17k, facility hire income of $25k, lower than anticipated expenditure on electricity in Building Management of $17k and consultants in Policy and Planning of $9k have been offset by agency staff costs of $82k.

o Development Services: Savings in salaries of $298k due to vacant positions, better than anticipated fees and charges income in Building Services of $24k and Statutory Planning of $214k have been offset by an increase in agency staff costs of $59k.

o Economic, Youth and Community Development: Savings in salaries of $56k, unanticipated grant funding of $45k for installation of a sculpture and $40k for School Focus Youth have been offset by higher than anticipated costs for consultants of $153k mainly in Youth Planning and Partnership program and Ridge walk project, rental of $31k for Lilydale Library and contributions for community programs in Economic Development of $29k.

o Social and Economic Development Management: Higher than anticipated salaries expense of $14k and higher training and education expense in Social and Economic Development of $11k.


Page 33

Appendix A (contd.)

Organisational Finance ($1.7m unfavourable) The YTD variance is mainly due to: o Early receipt of 50% of 2017-18 Victorian Grants Commission funding of $3.3m; o Maternity Leave payments of $122k; o Higher than anticipated payments made for staff redundancies of $230k; o Higher than anticipated asset disposals of $367k (non cash); and o Higher than anticipated depreciation of $113k (non cash).

Offset by: o Better than anticipated income generated for general rates and charges of $711k due to

supplementary valuations; o Higher income received of $800k from the sale of Council property (13 Leith Rd,

Montrose) – funds to be transferred to the Future Community Fund; o Higher than anticipated Public Open Space contributions of $186k; o Higher than anticipated contributed assets of $266k (non-cash); o Lower than anticipated expenses on special projects and flexible future project of

$154k; o Lower than anticipated bank charges and interest on borrowings of $319k.

Natural Disasters recovery and response ($570k favourable) Council received financial assistance of $613k for Natural Disaster claims raised in 2016-17. Offsetting this is additional expenditure incurred for storms in the current year of $43k, the majority of which will be claimed back.


Page 34

Appendix A (contd.)

Capital Maintenance ($1.49m unfavourable) YTD variance is mainly due to:

o Grant funding of $1.1m received for Belgrave Multi-purpose Health Hub and $200k for Monbulk Subregional Soccer Centre.

Offset by: o Higher drainage rehabilitation, drainage lining and minor works of $512k; o Higher footpath rehabilitation works of $423k including Hike and Bike Strategy review; o Lower than anticipated contributions of $176k for Water Sensitive Urban Design

projects, $50k for Warburton Sports Oval drainage upgrade and $48k for Coldstream Reserve Netball Courts lighting;

o Delayed funding for various 2017-18 Roads to Recovery projects totalling $382k; o Higher expenditure of $310k on sports facilities, trail improvements, playspaces,

townships and other open space infrastructure; o Lower than anticipated income of $127k for Special Charge Scheme – Main Street,

Belgrave; o Higher expenditure of $115k for sealed roads repairs and patching works; o Higher expenditure of $123k for road traffic management and rehabilitation works; o Lower than anticipated funding of $158k for Upwey Reserve Pavilion; and o Maintenance works of $300k on various Council buildings and Recreation Facilities,

including Kilsyth Pool and Yarra Centre and $67k on bridges.


Page 35

Appendix B – Financial Statements

INCOME STATEMENT AS AT 31 DECEMBER 2017

This statement has been prepared in a format consistent with presentation made in Council’s Annual Report which is based on a Model Set of Accounts prepared by the Local Government sector.

Explanation of variances

“F” = Favourable

Actual year to date (YTD) income is greater OR expenditure is less than the YTD Budget amount.

Forecast income to year end is greater OR expenditure is less than adjusted Budget.

“UF” = Unfavourable

Actual YTD income is less OR expenditure is greater than the YTD Budget amount.

Forecast income to year end is less OR expenditure is greater than adjusted Budget.

YTD VARIANCE $'000

YTD

Budget

YTD

Actuals

YTD

Variance

Adopted

Budget

Adjusted

Budget

Forecast

to Year

end

Carry fwds.

to 2018-19

Income

Contributions - Cash 1,478 1,328 (150) UF 2,904 3,003 3,117 114 F -

Contributions - Non monetary assets 600 866 266 F 1,200 1,200 1,200 - F -

Grants - Non Recurrent 3,560 5,167 1,607 F 6,748 11,549 11,899 350 F -

Grants - Recurrent 12,167 9,297 (2,870) UF 25,323 18,332 18,872 540 F -

Interest 748 861 113 F 1,838 1,838 1,838 - F -

Other Revenue 372 476 104 F 891 890 963 73 F -

Rates - General 132,905 133,616 711 F 133,348 133,348 133,828 480 F -

Rates - Special Rates and Charges 1,247 1,175 (72) UF 1,247 1,247 1,277 30 F -

Reimbursements 43 19 (24) UF 172 172 172 - F -

Statutory Fees and Fines 1,162 1,528 366 F 1,895 1,895 2,727 832 F -

User fees 3,889 4,107 218 F 8,426 8,868 8,918 50 F -

158,171 158,440 269 F 183,992 182,342 184,811 2,469 F -

Expenditure

Bad and Doubtful Debts 15 - 15 F 32 32 32 - F -

Depreciation and Amortisation 13,065 13,178 (113) UF 26,131 26,131 26,131 - F -

Employee Benefits 33,585 30,660 2,925 F 65,786 66,119 66,249 (130) UF -

Finance Costs (Interest) 596 359 237 F 1,286 1,286 1,286 - F -

Materials and Serv ices 27,673 31,090 (3,417) UF 61,840 63,540 66,100 (2,560) UF 127

Other Expenses 4,686 4,704 (18) UF 7,366 7,304 7,297 7 F -

79,620 79,991 (371) UF 162,441 164,412 167,095 (2,683) UF 127

Net gain (loss) on disposal of property ,

infrastructure, plant and equipment (750) (344) 406 F (1,500) (1,500) (1,300) 200 F -

Net Surplus (Deficit) 77,801 78,105 304 F 20,051 16,430 16,416 (14) UF (127)

Variance - Forecast

to Adjusted

Budget



Page 36

Appendix B (contd.)

BALANCE SHEET AS AT 31 DECEMBER 2017

Notes

1. Income received from rates and charges higher than in 2016-17 mainly due to the rate increase and early receipt of 50% of 2017-18 Victorian Grants Commission funding.

2. Rates debtors higher than this time last year as a result of the rate increase. 3. Due to capitalisations and revaluation increments in June 2017. 4. Due to increase of trade creditors and salary and wages accruals. 5. Due to increased provision for landfill and employee leave. 6. Due to repayment of loan borrowings. 7. Result of the June 2017 asset revaluations. 8. Result of Public Open Space contributions income transfer to reserve in June 2017.

31 December 2017 31 December 2016

Favourable /

(unfavourable)

Variance Notes

$'000 $'000 $'000

Current assets

Cash and cash equivalents 47,283 33,893 13,390 1

Trade and other receivables 112,479 109,479 3,000 2

Other assets 2,360 2,487 (127)

Total current asets 162,122 145,859 16,263

Non-current assets

Trade and other receivables 2,568 2,301 267

Investments in associates 4,236 3,981 255

Property , infrastructure, plant and equipment 1,014,002 977,680 36,322 3

Total non current-assets 1,020,806 983,962 36,844

Total assets 1,182,928 1,129,821 53,107

Current liabilities

Trade and other payables 9,766 5,475 (4,291) 4

Trust funds and deposits 11,837 11,802 (35)

Interest-bearing loans and borrowings 2,064 1,522 (542) 6

Provisions 15,533 13,930 (1,603) 5

Total current liabilities 39,200 32,729 (6,471)

Non-current liabilities

Interest-bearing loans and borrowings 20,574 23,730 3,156 6

Provisions 3,528 4,210 682 5

Total non-current liabilities 24,102 27,940 3,838

Total liabilities 63,302 60,669 (2,633)

Net assets 1,119,626 1,069,152 50,474

Equity

Accumulated surplus 581,000 551,358 29,642

Asset revaluation reserve 531,125 511,138 19,987 7

Other reserves 7,501 6,656 845 8

Total equity 1,119,626 1,069,152 50,474


Page 37

Appendix B (contd.)

STATEMENT OF CASH FLOW AS AT 31 DECEMBER 2017

2017-18

Inflows

(Outflows) $’000

CASH FLOWS FROM OPERATING ACTIVITIES

Rates and charges 54,103

Statutory fees and fines 1,303

User fees (inclusive of GST) 5,164

Grants - operating (inclusive of GST) 14,497

Contributions (inclusive of GST) 1,354

Interest received 864

Trust funds and deposits 48

Fire serv ices property levy 184

Other receipts (inclusive of GST) 566

Net GST refund 5,193

Materials and Serv ices (inclusive of GST) (41,320)

Employee costs (30,853)

Other payments (5,112)

Net cash provided by operating activities 5,991

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for property , infrastructure, plant and equipment (14,400)

Proceeds from sale of property , infrastructure, plant and equipment 1,021

Net cash used in investing activities (13,379)

CASH FLOWS FROM FINANCING ACTIVITIES

Finance costs (393)

Repayment of interest bearing loans and borrowings (1,092)

Net cash provided by (used in) financing activities (1,485)

Net decrease in cash and cash equivalents (8,873)

Cash and cash equivalents at beginning of the financial year 56,156

Cash and cash equivalents as at 31 December 2017 47,283


Page 38

Appendix B (contd.)

CAPITAL PROGRAM (Excl. Maintenance) AS AT 31 DECEMBER 2017

YTD VARIANCE $'000

YTD

Budget

YTD

Actuals

YTD

Variance

Adopted

Budget

Adjusted

Budget

Forecast

to Year

end

YTD

actual

spend to

forecast %

Carry fwds.

to 2018--19

Expenditure

Asset Renewal Reserve 501 - 501 F 1,003 397 412 0% - (15) UF

Infrastructure - Bridges 196 - 196 F 392 535 422 0% - 113 F

Infrastructure - Community & Recreation 1,275 175 1,100 F 2,550 3,187 3,263 5% - (76) UF

Infrastructure - Drainage 1,561 438 1,123 F 3,123 3,762 2,566 17% - 1,196 F

Infrastructure - Footpaths & Cycleways 1,512 942 570 F 3,023 4,264 4,149 23% - 115 F

Infrastructure - Off-street Carparks 389 6 383 F 778 778 778 1% - - F

Infrastructure - Open Space 2,650 973 1,677 F 5,300 7,136 5,718 17% 1,148 270 F

Infrastructure - Roads 4,359 3,054 1,305 F 12,093 15,539 14,880 21% 1,743 (1,084) UF

Infrastructure - Waste Management 35 - 35 F 70 70 70 0% - - F

P&E - Computers & Comms 218 381 (163) UF 435 351 463 82% - (112) UF

P&E - Fix tures & Fittings & Furniture 611 22 589 F 1,221 1,407 1,392 2% 65 (50) UF

P&E - Plant & Machinery & Equipment 1,160 338 822 F 2,320 2,800 1,700 20% 1,100 - F

Property - Buildings 7,001 8,077 (1,076) UF 14,003 20,531 13,361 60% 7,417 (247) UF

Property - Land - - - F - 800 - 0% 800 - F

21,468 14,406 7,062 F 46,311 61,557 49,174 29.3% 12,273 110 F


Variance -

(forecast plus

carry forwards) to

Adjusted Budget


Page 39

Appendix C – Rates & Hardship Debtors

Rates hardship & arrangements debtors trends are reflected below:

The number of hardship assessments and arrangements by Ward are as follows:

Ward Assessments

by Ward

Arrangements

by Ward

Hardships by

Ward

% Arrangements

by Ward

% Hardship by

Ward

Billanook 7,596 193 63 2.5% 0.8%

Chandler 6,836 156 73 2.3% 1.1%

Chirnside 7,119 122 32 1.7% 0.4%

Lyster 6,645 127 86 1.9% 1.3%

Melba 7,562 123 36 1.6% 0.5%

O'Shannassy 8,205 176 154 2.1% 1.9%

Ryrie 7,940 141 65 1.8% 0.8%

Streeton 6,299 160 63 2.5% 1.0%

Walling 6,905 119 58 1.7% 0.8%

Total 65,107 1,317 630 2.0% 1.0%


Page 40

Appendix D: Capital Works Report


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Yarra Ranges CouncilPO Box 105Lilydale VIC 3140

Telephone: 1300 368 333

Email: [email protected] Website: yarraranges.vic.gov.au

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