2011-2012 - Nillumbik Shire Council

2011-2012 

Page 1 Annual Report 2011-2012 

Nillumbik Shire Council

Page 2 Annual Report 2011-2012


Contents 

OUR ANNUAL 

REPORT 

This Annual Report 2011-2012 is a 

thorough overview of Nillumbik Shire 

Council’s performance in the past 

financial year against objectives set 

out in the Budget 2011-2012 and the 

Council Plan 2009-2013. 

The report also highlights 

achievements, challenges and 

the year ahead in key operational 

areas and provides comprehensive 

corporate governance information and 

audited financial statements, fulfiling 

Council’s statutory responsibilities 

under the Local Government Act 1989 

and other legislation. 

To obtain a copy of this Annual 

Report, contact Customer Service on 

9433 3111 or view a copy online at 

www.nillumbik.vic.gov.au. 

OUR STRATEGY Page 4 

OUR FINANCES Page 6 

OUR MAYOR AND CEO Page 12 

OUR NILLUMBIK Page 16 

• Nillumbik’s location Page 17 

• About Nillumbik Page 18 

• A brief history Page 19 

OUR COUNCIL Page 20 

• How councils operate Page 21 

• About Councillors Page 21 

• Nillumbik Shire Council Page 21 

• Nillumbik Councillors and Wards Page 22 

OUR ORGANISATION Page 24 

• Our structure Page 26 

• Executive Management Team Page 25 

OUR SURVEY Page 28 

OUR GOAL AREAS Page 32 

• Our people and communities Page 32 

• Our environment Page 42 

• Our economy Page 52 

• Our Council Page 58 

OUR PEOPLE Page 64 

CORPORATE GOVERNANCE Page 68 

ANNUAL FINANCE REPORT Page 82


Ou r Stra tegy 

Council Plan 2009-2013


OUR STRATEGY 

Our vision for 

Nillumbik... 

Our vision 

Our vision for Nillumbik is a Shire 

which has: 

• safe, healthy and engaged 

communities 

• a sustainable and well managed 

natural and built environment 

• a vibrant local economy 

• a respected and accountable 

Council, committed to innovative and 

continuous improvement. 

Our mission 

To achieve the vision, Council will: 

• engage its communities, seek citizen 

involvement and respond with good 

governance 

• deliver quality services and facilities 

that meet the needs of Nillumbik’s 

communities 

• plan for and facilitate long-term 

sustainability that benefits Nillumbik 

in an economic, social, cultural and 

environmental sense 

• ensure resources are managed in a 

responsible and accountable way. 

Our values 

We will work in accordance with our 

adopted values. 

• Respect – we value our community 

and each other. 

• Integrity – we will be honest, open 

and fair in everything we do. 

• Accountability – we take responsibility 

for our actions. 

• Cooperation – we will work with each 

other and the community to achieve 

our goals. 

Goals and objectives 

Our people and communities 

Safe, healthy and engaged communities. 

Our environment 

A sustainable and well managed natural 

and built environment. 

Our economy 

A vibrant local economy. 

Our Council 

A respected and accountable Council, 

committed to innovative and continuous 

improvement.


Ou r Finan ces 

2011-2012


OUR FINANCES 

These financial results for each of the 

three years from 2010 to 2012, provide 

a snapshot view of Council’s financial 

performance. 

Total revenue has decreased from 2011 

to 2012 by $2.56 million; the majority of 

decreases are in the grants area. 

Operating expenditure has increased 

from 2011 to 2012 by $6.77 million. 

Council spent $17.5 million in 2011- 

2012 on capital expenditure. 

Financial snapshot 

2011/2012 2010/2011 2009/2010 

$'000 $'000 $'000 

Net rate revenue 45,224 42,492 39,579 

Total revenue 76,287 78,845 69,120 

Operating expenses 77,923 71,155 63,731 

Borrowing costs 994 746 834 

Net surplus/ (deficit) (1,636) 7,690 5,389 

Capital expenditure 17,551 17,592 12,956 

Net cash generated by 

operating activities 16,772 16,526 15,002 

Total assets 669,662 625,906 545,692 

Total liabilities 41,910 34,017 29,108 

Total equity 627,752 591,889 516,584 

Reserves 287,274 251,699 251,086 

Council assets ($000) 

Council liabilities ($000) 

Council equity ($000) 

$700,000 

$70,000 

$700,000 

$600,000 

$500,000 

545,692 

625,906 

669,662 

$60,000 

$50,000 

$600,000 

$500,000 

516,584 

591,889 

627,752 

$400,000 

$40,000 

41,910 

$400,000 

$300,000 

$200,000 

$30,000 

$20,000 

29,108 

34,017 

$300,000 

$200,000 

$100,000 

$10,000 

$100,000 

$0 

2009/10 2010/11 2011/12 

$0 

2009/10 2010/11 2011/12 

$0 

2009/10 2010/11 2011/12 

Council assets 

Council assets increased by $43.8 

million in 2011-2012. The main 

increases were: 

• $3.1 million in cash and 

investments 

• $44.1 million from fixed assets 

items which is the net result of 

capital expenditure, depreciation 

of assets, written down value of 

assets sold, gifted assets and asset 

revaluation. 

Council liabilities 

Council liabilities increased by $7.9 

million in 2011-2012. The main 

increases were: 

• $4.5 million in trade and other 

payables 

• $2.8 million in Interest-bearing 

loans and borrowings 

Council equity 

The Council’s equity (what we are 

worth) increased by $35.8 million, as a 

result of Council’s asset revaluation in 

year 2011-2012. 

Pictured from left to right: Robert Malignaggi, 

Amy Montalti and Rosina Beauverd.


OUR FINANCES 

Revenue 2011-2012 

Rates and charges 59.28% 

Statutory fees and fines 1.24% 

User fees 14.77% 

Grants – Recurrent 9.72% 

Grants – Non-recurrent 8.25% 

Contributions 4.84% 

Reimbursements 1.07% 

Other revenue 0.83% 

Total Revenue 100.00% 

Expenses 2011-2012 

Employee expenses 38.16% 

Contract payments, materials and services 39.75% 

Bad and doubtful debts 0.08% 

Depreciation & Amortisation 10.18% 

Other expenses 10.56% 

Finance costs 1.27% 

Total Expenses 100.00% 

Assets as at 30 June 2012 

Cash and cash equivalents 3.54% 

Receivables 1.01% 

Accrued income 0.36% 

Prepayments 0.01% 

Land held for sale 0.11% 

Inventories 0.00% 

Investment in Associate 0.16% 

Other financial assets 0.00% 

Property, infrastructure, plant and equipment 94.81% 

Total Assets 100.00% 

Liabilities as at 30 June 2012 

Pictured: Stephen Richardson 

Payables 22.69% 

Trust funds 2.59% 

Provisions 36.30% 

Interest-bearing liabilities 38.42% 

Total Liabilities 100.00%



OUR FINANCES 

Expenditure by program area 

Category 

Percentage 

Category 

Percentage 

Aged Services 2.3% 

Animal Management 0.1% 

Arts & Cultural Services 1.00% 

Asset Management 0.6% 

Building 0.6% 

Building Maintenance 3.0% 

Communications 0.7% 

Community & Leisure Facilities Management 0.4% 

Community Development & Place Management 1.1% 

Community Facilities & Halls Network 0.6% 

Community Participation, 

Learning & Culture Management 0.3% 

Community Services & Social Development 0.2% 

Construction 10.8% 

Council Property Administration 0.2% 

Customer Service 0.5% 

Edendale Farm 1.2% 

Emergency Management 0.8% 

Engineering Design 3.1% 

Environment Services Management 0.3% 

Environment Works 1.1% 

Environmental Health 0.8% 

Environmental Planning 1.3% 

Family Services 3.1% 

Finance and Rates/ Valuation Management 0.8% 

Fire Prevention / Recovery and Emergency 

Management 3.4% 

Fleet Maintenance 0.4% 

Governance 0.9% 

I.T. Business Support 1.3% 

Information Services 0.7% 

Information Technology Management 1.8% 

Leisure Facilities 19.2% 

Leisure Services 0.5% 

Library Services 3.4% 

Living and Learning Network 1.9% 

Municipal Laws Co-ordination 1.4% 

Operations Centre Management 1.1% 

Organisational Development 1.5% 

Parks Maintenance 4.2% 

Planning and Building Administration 1.2% 

Property Management 0.5% 

Rates and Valuations 0.7% 

Risk and Insurance 2.2% 

Road Maintenance 4.4% 

School Crossing Program 0.5% 

Statutory Planning 1.4% 

Strategic Planning 0.5% 

Strategic & Economic Planning Management 0.2% 

Technical Services 0.9% 

Tourism & Business Development 0.9% 

Traffic & Transport/Mgmt 2.9% 

Waste Services 6.5% 

Youth Services 0.6% 

100.0%


OUR FINANCES 

Council Grants to the Community 

Arts Related 

Montsalvat 35,454.27 

35,454.27 

Business and Tourism Development Grants 

Nillumbik Tourism Association 43,500.00 

NTA – Admin Support Grant 31,500.00 

75,000.00 

Community Festivals/Fairs 

Diamond Creek Rotary Club 31,050.00 

Eltham Rotary Club 51,780.00 

Hurstbridge Traders – Wattle Festival 25,750.00 

Panton Hill – On the Hill Festival 14,420.00 

Past Matters Festival 3,272.00 

Eltham Chamber of Commerce 27,272.00 

Welcome Platypus Festival 6,048.00 

Warrandyte Festival Committee 17,700.00 

World Matters Festival 6,180.00 

183,472.00 

Community Group Support Grants 

Eastern Veterans Cycling Club 200.00 

Calvary Retirement Village 1,200.00 

Friends Of Kangaroo Ground RFB 500.00 

Eltham Foodshare Inc 1,819.35 

Project Walk Melbourne Inc 1,200.00 

Omni Eltham 1,200.00 

Hurstbridge Traders Association 1,818.18 

Andrew Ross Museum 1,869.00 

Queenstown Cemetery Trust 454.55 

Strathewen Public Hall Inc. 2,000.00 

Austin Health Diamond Creek 1,818.18 

Nillumbik U3A Inc 1,400.00 

Eltham South Preschool Association 2,000.00 

St Andrews Community Centre In 3,000.00 

CFA- Research & Kangaroo Groun 750.00 

St Andrews Community Bushfire 650.00 

Local Food Connect 1,310.00 

Plenty Valley Community Radio 2,100.00 

Plenty Valley Girl Guides Dist 510.00 

The Boite 1,500.00 

Eltham Concert Band Inc 1,129.09 

Yarra Warra Pre-School Inc 350.00 

Nillumbik Community Health Service 2,000.00 

Diamond Creek Mens Shed 2,000.00 

Strathewen Recreation Reserve 1,300.00 

Local Food Connect 1,910.00 

35,988.35 

Cultural Development Grants 

Community Music Victoria 3,000.00 

Eltham Little Theatre 2,000.00 

Charlie Sublet 960.00 

5,960.00 

Fire Brigades 

Arthurs Creek Fire Brigade 2,882.35 

Hurstbridge Fire Brigade 2,882.35 

Kinglake Fire Brigade 2,882.35 

Nillumbik Group Fire Brigade 2,882.35 

North Warrandyte Fire Brigade 2,882.35 

Panton Hill Fire Brigade 2,882.35 

Research Fire Brigade 2,882.35 

Yarrambat Fire Brigade 2,882.35 

Wattle Glen Fire Brigade 2,882.35 

Christmas Hills Fire Brigade 2,882.35 

Doreen Fire Brigade 2,882.35 

Whittlesea / Diamond Valley Gr 2,882.35 

Diamond Creek Fire Brigade 2,882.35 

Eltham Fire Brigade 2,882.35 

Plenty Fire Brigade 2,882.35 

Kangaroo Ground Fire Brigade 2,882.35 

St Andrews Fire Brigade 2,882.35 

48,999.95 

Heritage Grants 

Yarrambat Historical Society 500.00 

Plenty Historical Society Inc 500.00 

St Andrews/Queenstown Hist. So 500.00 

Eltham District Historical Soc 500.00 

Nillumbik Historical Society 500.00 

Queenstown Cemetery Trust 500.00 

Allwood Neighbourhood House In 454.55 

3,454.55 

Occasional Child Care Centres 

Hohnes Road Playhouse 25,454.00 

25,454.00 

Operational 

Diamond Valley Community Support 11,570.00 

Allwood Neighbourhood House 11,250.00 

North East Region Volunteer Resource 9,270.00 

32,090.00 

Sports & Recreational Achievements 

21 individuals & teams 3,550.00 

3,550.00 

Youth Support Grants 

Diamond Valley Baptist Church 2,727.27 

Battalion 2,727.27 

Phunktional 4,500.00 

9,954.54 

Total Grants & Donations 459,377.66 

(Note: Amounts are GST Exclusive)


Ou r Ma yor 

and CEO


OUR Mayor and CEO 

We are pleased 

to present 

Nillumbik Shire 

Council’s 


Annual Report. 

This is the third Annual Report against 

the 2009-2013 Council Plan. Throughout 

the year Council has reviewed quarterly 

progress reports of Council’s annual 

business plan. 72 of the 85 priority 

actions were successfully completed by 

June 30. The remaining 13 actions had 

substantial progress and were due for 

completion early in the new financial year. 

Some of the highlights of the business 

plan include: 

Delivering key projects 

After 10 years in the planning and 

building, the $10.5 million Community 

Bank Stadium in Diamond Creek was 

officially opened in February 2012. 

Funded jointly by Council, the State and 

Federal Governments as well as the 

Diamond Creek Community Bank and 

some community fundraising, it features 

three basketball courts, a fully fitted out 

gymnastics facility, staging, seating for 

900 people, function rooms and a café. 

Work began at Eltham Lower Park 

on implementing the $1.75 million 

masterplan, with $961,000 of the funds 

coming from Council. Works included 

upgrading the entrance and northern car 

park, as well as upgrading and widening 

the shared recreational trail. The 725m 

section of trail forms a part of the 11km 

Diamond Creek Trail. 

The refurbished Civic Centre in 

Greensborough – Council’s main 

administrative headquarters – was 

officially opened. The interior of the Civic 

Centre, which was built in 1972 to house 

the former Shire of Diamond Valley, 

underwent a significant transformation 

over the two-year $7.5 million project 

which attracted a $3 million grant from 

the Australian Government. It now boasts 

spacious and contemporary office areas 

for staff, new Council Chamber and 

multifunctional meeting spaces and a 

bright and spacious new reception area 

providing much improved facilities for 

customers. 

Planning for the future 

Council is planning for the future to ensure 

that Nillumbik is a great place to live, work 

and visit for generations to come. 

Plans and strategies adopted throughout 

the year included the Cultural Plan 2011- 

2017 ‘Growing our arts and culture’; the 

Nillumbik Trails Strategy; Environmental 

Education Strategy, Biodiversity Strategy 

and Heritage Strategy. 

Council took a strong position to 

protect the Green Wedge by writing to 

the Minister for Planning with a clear 

message that there are no significant 

anomalies in the current position of 

the Urban Growth Boundary (UGB) in 

Nillumbik. This followed a review of the 

UGB assessed against the Minister’s 

standards and criteria. 

After more than 10 years of negotiation, 

Council and the Department of Education 

and Early Childhood Development signed 

a contract securing the purchase of the 

former Hurstbridge Secondary School 

site. The land and property includes a 

gymnasium, car park, tennis courts, 

existing ovals and creek area – a total of 

7.338 hectares or around 18 acres. This 

site and its existing community facilities 

will be used in the development of a 

new family centre for Hurstbridge after 

a funding shortfall of around $3 million 

meant that a purpose-built facility was 

financially out of reach. 

A community-led project will see the 

transformation of the ageing community 

facility at St Andrews into a flexible 

and vibrant centre for local events and 

activities. The redevelopment of the St 

Andrews Community Centre received a



Victorian Government grant of $300,000 

during the year. The $2.5 million project 

also involves financial contributions from 

Council and the Victorian Bushfire 

Appeal Fund. 

A Victorian Government grant of $30,000 

to establish a masterplan for vacant land 

in Bell Street, Eltham, will enable Council 

to work closely with the community to 

plan the future uses of the public space 

which has high environmental and 

community significance. 

We also started a conversation with the 

community to confirm what they value 

most about their townships; what their 

priorities are for their communities and 

what vision they have for Nillumbik’s 

future. The project, titled Picture 

Nillumbik, will help shape Council’s 

community planning and identify how we 

can work better with residents. Residents 

were invited to tell their story in their own 

way – through photos, pictures, poems, 

stories, videos or art. 

Improving 

community safety 

Recovery from the Black Saturday 

bushfires of February 2009 continued, 

although many programs were 

completed, wound down or were 

incorporated into ongoing service 

provision by Council and other 

recovery agencies. 

A significant amount of work was 

completed over the year in the five key 

areas of psychosocial recovery, natural 

environment, built environment, economic 

recovery and emergency management/ 

fire prevention planning changes. 

A comprehensive $650,000 program of 

bushfire prevention works on Councilowned 

roadsides and reserves to prepare 

the Shire for the fire season took place, 

following recommendations from the 

Municipal Fire Prevention Committee. 

We also reviewed our Municipal 

Emergency Management Plan (MEMP) 

which was audited by the Victorian SES 

and classed as best practice. 

Another Neighbourhood Safer Place – 

Place of Last Resort was identified in 

Circulatory Road, Eltham between Arthur 

and Dudley Streets and was designated 

to be used as a last resort during bushfire 

emergencies. The location satisfied the 

necessary criteria as assessed by the 

CFA and Council’s Municipal Emergency 

Management Planning Committee. 

While our emergency management focus 

on fire prevention continued, parts of the 

Shire were badly impacted by storms 

and flooding which wreaked havoc on 

Christmas Day 2011. Damage was 

widespread across residential properties, 

a range of Council buildings, roads 

and bridges and we received some 

120 calls to the after-hours emergency 

service in the days following the storms, 

all of which had an initial response or 

assessment within a few days. 

Within days all Council’s footbridges and 

roads were reopened and the repair of 

roads and drains continued throughout 

January. More than 400 residents took 

advantage of Council’s free green waste 

service to dispose of fallen tree 

branches and other garden debris 

following this storm. 

Advocacy and 

community engagement 

Council undertook advocacy on behalf of 

the community on a range of important 

matters including reviews of the Urban 

Growth Boundary, the Fire Levy proposal 

and a number of parliamentary inquiries. 

Council advocacy also included direct 

representation to State and Federal 

Government about funding opportunities. 

We were successful in obtaining 42 

grants valued at $7.2 million during the 

financial year. 

While Local Government Victoria was 

going through the process of reviewing 

the methodology of the state-wide 

community satisfaction survey, Nillumbik 

chose to undertake its own inaugural 

Community Survey. Metropolis Research 

carried out the survey which involved 

face-to-face interviews with 500 

randomly-selected residents across 

five precincts of the Shire including 

Greensborough, Diamond Creek, Eltham, 

Eltham North and rural townships. The 

survey measured the importance to the 

community of a broad range of Council 

services and facilities. Satisfaction with 

these services was also measured 

through this survey. 

Council’s new website went live in 

December 2011, providing easier 

navigation and clearer, more succinct 

information for residents and visitors. 

The website has a ‘near to me’ function 

on the home page which allows residents 

to type in their address and receive 

information about their local ward and 

councillor, capital works projects and 

community facilities. 

During the renovation of our Council 

Chamber and civic meeting rooms, 

Council and Committee meetings were 

held offsite from April to November in 

the some of the Shire’s smaller rural 

communities, such as Strathewen, 

St Andrews and Kangaroo Ground. This 

gave local residents a chance to see firsthand 

the workings of their local council. 

Four Councillors held ward meetings 

in 2011-2012, providing residents with 

an opportunity to speak with their local 

councillor and council officers directly 

and to bring neighbourhood-specific 

issues to our attention. These meetings 

were well-attended by our citizens.



During the year the Local Government 

Compliance and Investigations 

Inspectorate brought conflict of interest 

charges against Cr Belinda Clarkson. 

The case was heard over two days in 

May in the Heidelberg Magistrates Court 

with several officers and Councillors 

being called as witnesses. The charges 

against Cr Clarkson were dismissed by 

the Magistrate. 

This did not detract from the good 

work carried out by the Council during 

the year and the community should be 

thanked for its active contributions to 

civic life and ongoing efforts in making 

Nillumbik a better place. 

Corporate Governance 

Council has again been ably assisted 

and advised by the Audit Committee 

throughout the year. This has included 

overseeing a range of internal audit and 

corporate risk review processes included 

events and festival management, 

Councillor expense management, GST 

compliance, Food/Health Act compliance 

and Road Management Act compliance. 

In November 2011, the Victorian 

Auditor-General released the results of 

the local government sector audits for 

the 2010-2011 financial year and gave 

Nillumbik a ‘green light’. 

Cr Michael Young 

Mayor 

Stuart Burdack 

Chief Executive Officer 

It is also pleasing to be able to 

report that despite some challenges 

reported throughout the year, on a rate 

determination basis, a budget surplus 

of $15,000 was achieved . This is in 

accordance with budget projections 

provided to Council and the community 

throughout the year. 

It was a pleasure to work with all 

stakeholders to achieve some terrific 

outcomes for the community. We would 

like to thank the Councillors and staff 

for their commitment and efforts to 

achieving these results.


Ou r Nillumbik 

Nillumbik’s location


OUR NILLUMBIK 

At its southwestern gateway, the Shire 

is located less than 25 kilometres 

north-east of Melbourne and has the 

Yarra River as its southern boundary. 

It extends 29 kilometres to Kinglake 

National Park in the north/north-east. 

The Shire stretches approximately 

20 kilometres from the Plenty River 

and Yan Yean Road in the west, 

to Christmas Hills and the Yarra 

escarpment in the east. 

Australia 

SOUTH AUSTRALIA 

THE 

GRAMPIANS 

NEW SOUTH WALES 

VICTORIAN ALPS 

VICTORIA 

Victoria 

MELBOURNE 

GREAT 

OCEAN ROAD 

PHILLIP 

ISLAND 

WILSONS 

PROMONTORY 

BASS STRAIT 

WHITTLESEA 

HUME 

NILLUMBIK 

MELTON 

MORELAND 

MOONEE 

DAREBIN 

VALLEY 

BANYULE 

BRIMBANK 

MANNINGHAM 

MARIBYRNONG YARRA 

MELBOURNE 

BOROONDARA 

MAROONDAH 

YARRA RANGES 

WYNDHAM 

HOBSONS BAY 

WHITEHORSE 

PORT 

STONNINGTON 

PHILLIP 

GLEN 

EIRA 

MONASH 

KNOX 

BAYSIDE 

KINGSTON 

GREATER 

DANDENONG 

CASEY 

CARDINIA 

FRANKSTON 

Melbourne 

metropolitan area


OUR NILLUMBIK 

The Nillumbik 

community 

values its 

environment and 

artistic heritage 

and recognises 

the need to build 

a sustainable 

future. 

About Nillumbik 

The Shire of Nillumbik is home to 64,219 

people who enjoy a healthy, safe, 

family-friendly lifestyle within close-knit 

communities. 

The collection of Nillumbik townships, 

each with its own unique identity and 

heritage, range from typical urban 

settings to remote and tranquil rural areas 

with properties set amongst bushland 

and rolling hills across the Shire’s 431.94 

square kilometres. 

Striking architecture and mudbrick 

buildings characterise Nillumbik and Yarra 

Valley wineries complement the natural 

landscape. 

At a glance 

There are also more than 300 hectares 

of nature and recreation reserves, 

not including some areas of Kinglake 

National Park in the north of the Shire. 

The major townships – Eltham, Diamond 

Creek and Hurstbridge – offer residents 

and visitors distinctive village-style 

shopping, access to professional 

services and public transport and provide 

places to meet and recreate. 

Nillumbik has a strong sense of 

community, a tradition of valuing the 

bushland environment and artistic 

heritage and recognises the need to build 

a sustainable future. 

Area 

431.94 square kilometres 

Total population 64,219 

Rateable properties 22,492 

Males 49.4% 

Females 50.6% 

Residents aged under 18 years 28.3% 

Residents aged between 18-60 years 60.5% 

Residents aged over 60 years 11.1% 

Indigenous population 153 

Residents born in Australia 81.8% 

Homes owned or being purchased 85.8% 

Number of residents employed (full or part time) 96.9% 

Residents who drive their car to work 66.4%


OUR NILLUMBIK 

A brief history 

The area now comprising the Shire of 

Nillumbik was roamed for centuries by 

the Wurundjeri-willam clan of the Woi 

wurrung speaking people. 

The Wurundjeri people called our region 

nillumbik meaning shallow earth – a 

name later used by the Europeans who 

settled here. 

The first Europeans came into the 

Nillumbik area around 1836 claiming 

pockets and runs of land on pastoral 

leases scattered across much of the Shire. 

The first industry in the area was timber 

cutting. Early timber cutters felled the 

stringybark forests and carted the timber 

by bullock teams for use in Melbourne’s 

rapidly developing building trade. 

A successful Scottish farming community 

became established at Kangaroo Ground 

in the 1840s, thanks to its rich and fertile 

volcanic soil. 

In 1850, a vineyard was established by 

Joseph Stevenson at Kangaroo Ground – 

there are now 42 vineyards in this western 

part of the Yarra Valley wine region. 

The area was generally slow to develop 

until the discovery of gold throughout 

the hills and gullies in the 1850s, 

which brought prospectors and the 

demand for transport, services, food, 

accommodation, fuel and water. 

This fuelled the establishment of 

townships such as Panton Hill, 

Research, Queenstown (now 

St Andrews) and Diamond Creek 

in the late 1850s and 1860s. 

Eltham developed around what is now 

Main Road from the 1840s. Located at 

the junction of the Diamond and Arthurs 

Creeks, Hurstbridge was first settled by 

grazier Cornelius Haley in 1841. 

The Diamond Creek Township received 

its name from surveyor Edward Bage in 

1867. Gold was first discovered in 1862 

but a fire in 1915 brought mining to a 

halt, and despite one attempt in 1950, 

the mines remain closed. 

The development of a fruit industry in 

the northern areas of the Shire and the 

arrival of the railway to Eltham and later 

Hurstbridge (1912), helped to sustain the 

other towns and localities born during the 

gold rush era. 

By 1900, fruit from the Shire’s orchards 

was being exported to other states 

and overseas. However, increased 

competition after Federation, World War 

I and the Great Depression saw many 

of the area’s orchardists turning to other 

pursuits such as poultry, selling firewood 

or supplementing their incomes by 

working for other landowners or working 

in gold mines. 

Drawn by its beauty, artists have 

traditionally settled in the Nillumbik 

area. Since the notable member of the 

Heidelberg School, Walter Withers (1854- 

1914), lived at Eltham the community has 

been home and inspiration for many of 

Australia’s great artists and intellectuals. 

The Montsalvat artist’s colony in Eltham 

is perhaps the best-known landmark of 

the area’s artistic tradition. Clifton Pugh 

established an artist’s colony called 

Dunmoochin in the late 1950s at Cottles 

Bridge and attracted several artists to 

join him. 

Local artist and environmental 

activist, Neil Douglas, established an 

Environmental Living Zone at the Bend 

of Islands in the 1970s as a response 

to bushland clearing and the proposed 

Yarra Brae Dam. It remains to this day 

enshrined in the Nillumbik Planning 

Scheme. 

On 15 December 1994, most of the 

former municipalities of Diamond Valley 

and Eltham, and parts of the Healesville 

and Whittlesea Shires, were drawn 

together to create the Shire of Nillumbik. 

The new Shire comprised a mix of 

landscapes, land uses and people. 

Black Saturday, 7 February 2009, was 

the worst bushfire disaster in Australian 

history and had a devastating impact 

on the Shire of Nillumbik. 41 lives were 

lost and 300 properties destroyed or 

damaged across the communities of 

Strathewen, St Andrews, Arthurs Creek 

and Christmas Hills. Approximately 9,800 

hectares was burnt, representing 23 per 

cent of the land area of the Shire.


Ou r Coun cil 

Council Plan 2009-2013


OUR council 

Nillumbik 

Shire Council 

In accordance with the Local Government 

Act 1989 (the Act), Nillumbik Shire 

Council’s role is to provide good 

governance and leadership for the 

Nillumbik community through advocacy, 

decision-making and action. 

Council has an obligation to achieve the 

most benefits from all available resources 

for its community and has pledged to do 

this in a sustainable manner. 

The Council Plan 2009-2013, which 

is reviewed each year, guides future 

planning and activities in Nillumbik, 

while establishing priorities for actions 

throughout the year. 

The priorities are set across the four 

goal areas. 

1. Our people and communities – Safe, 

healthy and engaged communities. 

2. Our environment – A sustainable 

and well managed natural and built 

environment. 

3. Our economy – A vibrant local 

economy. 

4. Our Council – A respected and 

accountable Council, committed 

to innovative and continuous 

improvement. 

How councils 

operate 

In Victoria, there are 79 councils 

representing around five million 

people. 

Councils consist of an elected 

arm (between five and 12 

councillors elected by the 

community) and an operational 

arm (council staff or officers). 

An elected council sets 

the overall direction for the 

municipality through long-term 

planning. It adopts a strategic 

view of the future it wishes to 

achieve for its community and 

makes plans and policies to 

achieve this. A council then 

ensures this is achieved through 

its monitoring and reporting 

processes. 

The operational or administrative 

arm is responsible for 

implementing council decisions. 

Council officers also provide 

advice and expertise that help a 

council to form policy decisions, 

deliver services, and implement 

and manage systems. 

For all these functions, they are 

accountable to the council 

through the chief executive 

officer. 

About 

councillors 

In Victoria, councillors are 

elected every four years to 

represent their communities. 

They receive an allowance to 

assist them to exercise their 

responsibilities and are expected 

to conduct themselves in 

accordance with the Councillors 

Code of Conduct. 

As an individual, a councillor 

is expected to represent 

the interests of residents 

and ratepayers. This means 

providing community leadership 

and guidance, and improving 

communication between the 

community and council. 

A councillor can only make 

decisions as a member of ‘the 

council’ at formally constituted 

council meetings. Actions occur 

after a majority vote decision 

of the council or of a formally 

delegated committee. As an 

individual, neither the mayor nor 

councillors have the authority to 

act or make decisions on behalf 

of the council or its staff. 

The next council elections will be 

held on 27 October 2012 in all 

municipalities across Victoria.


OUR council 

Nillumbik Councillors and Wards 

Councillor 

Belinda Clarkson 

Blue Lake Ward 


Lewis Brock 

Bunjil Ward 


Michael Young 

Edendale Ward 


Peter Perkins 

Ellis Ward 


Ken King 

Sugarloaf Ward 


Chris Chapple 

Swipers Gully Ward 


Helen Coleman 

Wingrove Ward


OUR council 

Our Shire and Ward map 

BUNJIL WARD 

SUGARLOAF WARD 

BLUE 

LAKE 

WARD 

ELLIS 

WARD 

EDENDALE WARD 

SWIPERS GULLY WARD 

WINGROVE 

WARD


Ou r 

Orga n isa tion


OUR organisation 

Manager Finance 

Mark Spaziani 

Our structure 

General Manager 

Corporate Services 

Andrew Port 

Manager Organisational 

Development and Risk 

Suzy Ellingsen 

Manager Governance and Communications 

Allison Watt 

Manager Information Services 

Trish Spiteri 

Manager Planning Services 

Jeremy Livingstone 


Environment and Planning 

Ransce Salan 

Manager Strategic and Economic Planning 

Chad Griffiths 

Manager Environmental Services 

Pat Vaughan 

Manager Regulatory Services 

Phil Lovelace 



Manager Community Participation, 

Manager Finance 

Learning and Culture 

Mark Spaziani 

Adrian Cully 


Community and Leisure Services 

Clem Gillings 

Manager Manager Community Finance Services 

Tara Mark Frichitthavong 

Spaziani 

Manager Community and Leisure Services 

Darren Bennett 

Manager People and Place 

Mark Noonan 

Manager Assets and Property 

Neville Slade 


Infrastructure Services 

Conal Creedon 

Manager Infrastructure Maintenance 

Tamara Johnson 

Pictured: Natalie Hall 

Manager Infrastructure Development 

Mathew Deayton



Executive Management Team 



Stuart joined Nillumbik as Chief 

Executive Officer in August 2010. 

He has worked in local government 

for more than 20 years in a variety of 

senior roles. Prior to commencing with 

Nillumbik, Stuart was the CEO at Shire 

of Glenelg and a General Manager for 

the City of Darebin in Melbourne. 

Stuart’s local government career 

has seen his involvement in a variety 

of strategic planning and regional 

development projects including the 

Great South Coast Regional Plan, Green 

Triangle Region Freight Action Plan and 

the planning, construction and operation 

of Commonwealth Games facilities. 

Andrew Port 



Andrew was appointed General 

Manager Corporate Services in 

December 2007. 

He has been with Nillumbik since 2000 

in his prior role as Manager Major 

Projects and Business Services. 

Andrew has 25 years experience in 

Victorian local government including 

roles at the Cities of Boroondara and 

Camberwell. Andrew has a Bachelor of 

Business, Graduate Diploma in Finance 

and Master of Business Administration. 

Stuart holds a number of degrees 

including a Master of Business in 

Management, Graduate Diploma in 

Management, Bachelor of Applied 

Science and a Company Directors 

Diploma. He is a member of the 

Australian Institute of Management, 

the Australian Institute of Company 

Directors and Local Government 

Professionals.



Executive Management Team 

Ransce Salan 


Environment and Planning 

Ransce joined Nillumbik in late 2010. 

Previously he was Director of Planning 

and Environment at Devonport City 

Council in Tasmania. Other local 

government roles include Group 

Manager Development and Natural 

Resources at Eurobodalla Shire in New 

South Wales; Divisional Manager of 

Sustainable Development at Eurobodalla 

and Manager Sustainability at Kogarah 

Council in Sydney. 

Ransce has a Master of Business 

Administration with majors in Local 

Government and Marketing, a Graduate 

Diploma of Management, a Bachelor of 

Applied Science (Environmental Health) 

and has also undertaken postgraduate 

studies in Urban Living, Architecture 

and Urban Design. He is a Certified 

Practicing Planner, Building Surveyor and 

Environmental Health Officer. 

Clem Gillings 


Community and Leisure Services 

Clem has a broad range of experience at 

both local and state government levels. 

Prior to joining Nillumbik, Clem was 

Community Engagement Manager – 

North and West Metropolitan Team 

within the Department of Victorian 

Communities. 

Previously, Clem held several managerial 

roles within the Community Support 

Fund of the Department of Victorian 

Communities and has also held senior 

roles within the Department of Human 

Services and the Department of 

Community Services. 

Clem was a councillor with the Shire of 

Macedon Ranges for a number of years 

and held the position of mayor in 2001. 

Conal Creedon 



Conal trained and worked as an engineer 

in Ireland before migrating to Australia. 

He started his local government career 

at the former Shire of Eltham before 

moving to the City of Moreland, Shire of 

Yarra Ranges and joining Nillumbik Shire 

Council in his current role in August 2005. 

In addition to a Bachelor of Engineering, 

Conal holds postgraduate qualifications 

in Municipal Engineering and a Masters 

of Business Administration.


Ou rSurvey 

Community Survey 2011


OUR SURVEY 


Shire Council 

undertook 

its own 

comprehensive 

community 

survey in late 

2011. 

Annual Community 

Survey 2011 

In response to feedback from local 

Councils, Local Government Victoria 

introduced changes to the methodology 

and content for the annual Community 

Satisfaction Survey in 2012 to provide 

the sector with more reliable and 

meaningful results to information decision 

making and support strategic planning. 

Changes to the Community Satisfaction 

Survey in 2012 included increasing 

the sample size from 350 to 400 

respondents in each municipality and 

ensuring that this sample size reflected 

the demographic composition of that 

municipality. 

The survey also allowed for respondents 

to be residents over the age of 18 years 

instead of the ‘head of the household’. 

There were also revisions to the 

performance scale and scoring. 

Nillumbik Shire Council undertook its 

own comprehensive community survey 

in late 2011. 

This survey meets the statutory 

requirements of the Department and 

Planning and Community Development 

(DPCD) by providing importance and 

satisfaction ratings for the major Council 

services and facilities as well as scores 

for satisfaction with Council overall. 

Nillumbik Shire Council chose not to take 

part in the LGV Community Satisfaction 

Survey in 2012. 

For these reasons, direct comparison 

with previous Community Satisfaction 

Survey results is not possible. 

Community Survey 2011 

Council’s Community Survey, undertaken 

by Metropolis Research in late 2011, 

involved comprehensive face-to-face 

interviews with 500 randomly selected 

residents across the Shire with the aim 

to measure the importance of a broad 

range of Council services and facilities to 

the community and to gauge their level 

of satisfaction. 

The survey found that local residents 

are most satisfied with their local library, 

weekly waste and recycling services and 

services for young children. 

Residents are least satisfied with traffic 

management, particularly along main 

roads which are the responsibility of 

VicRoads, and public toilets, which 

is consistent across metropolitan 

Melbourne. 

The survey covered: 

• satisfaction with Council’s overall 

performance and aspects of 

governance 

• importance and satisfaction with a 

range of services and facilities 

• issues of importance for Council to 

address in the coming year 

• issues relating to financial security 

• community perception of safety in 

public areas of Nillumbik 

• satisfaction with Council 

customer service 

• demographic profile of respondents. 

Community satisfaction with Council’s 

overall performance was 6.33 out of 

10 which is described as solid and is 

virtually identical to a result of 6.32 for 

32 Melbourne Councils. 

Pictured: Kate Hansen and daughter Lily


OUR SURVEY 

The Nillumbik community considered four 

of five aspects of Council’s governance 

and leadership to be solid with scores of 

between 6.1 and 6.3. The exception was 

satisfaction with Council’s performance in 

meeting its responsibilities towards 

the environment which was rated at 6.8 

or good. 

Residents’ satisfaction with Council’s 

services and facilities overall was ‘good’ 

(scores between 6.5 and 7.25). 

Satisfaction with Council’s Customer 

Services was rated at levels from ‘good’ 

to ‘excellent’ (scores of 7.75 and above), 

particularly in the areas of general 

reception, provision of information and 

courtesy of service. 

There is a strong sense of local community 

in Nillumbik and residents generally feel 

safe in and around Nillumbik. Residents 

value the protection of the Green Wedge, 

the distinct community character and 

agreeing that they can turn to their 

neighbours for help. 

The issue of traffic management was 

the most commonly identified issue 

facing Nillumbik with survey respondents 

expressing substantial concern with the 

volume and speed of traffic. 

Residents are most satisfied with: 

Local library (mean) 8.23 

Weekly garbage collection 7.95 

Services for children 0-4 years 7.75 

Regular recycling 7.68 

Green waste collection 7.61 

Residents are least satisfied with: 

Traffic management 5.80 

Council owned public toilets 5.90 

Footpath maintenance and repairs 6.28 

Provision and maintenance of street trees 6.36 

Street sweeping 6.39 

* Scores out of 10 

Bushfire management and prevention, 

parks, gardens and open spaces and 

rates were also identified as important 

issues. 

The survey also reports on residents’ 

preferred methods of receiving information 

from Council; housing-related financial 

stress and involvement and satisfaction 

with planning. 

The survey results are available 

on Council’s website 

www.nillumbik.vic.gov.au


OUR SURVEY 

Overall satisfaction by precinct 

Agreement with 

‘Sense of community’ statements 

Eltham 

6.84 

Annual Community Survey 2011 

Greensborough 

6.38 


Melbourne 

6.33 

6.32 

Protect Green 

Wedge 

7.99 

Eltham North 

Diamond Creek 

Rural 

6.27 

6.16 

5.87 

Distinct 

community 

character 

Can turn 

neighbours to 

help 

7.9 

7.61 

1 2 3 4 5 6 7 8 9 10 

Local people 

can be trusted 

7.36 

Satisfaction with aspects of 

governance and leadership 


Feel part 

of a local 

community 

Adequate 

community 

services 

7.16 

7.13 

Meeting 

environmental 

responsibilities 

6.89 

Easy find out – 

local activities 

6.84 

Representation, 

advocacy and 

lobbying 

6.31 

Easy find 

– services 

available 

6.78 

Seeking 

community opinion 

and feedback 

6.23 

Opps to have a 

real say 

6 

Responsiveness 

to local 

community needs 

6.22 

Public transport 

5.94 

Maintaing trust 

and confidence 

6.15 

I volunteer 

locally 

5.55 

1 2 3 4 5 6 7 8 9 10 

1 2 3 4 5 6 7 8 9 10


Ou r people 

and commun ities 

GOAL AREA 1 – COUNCIL PLAN 2009-2013


OUR PEOPLE AND COMMUNITIES 

Safe, healthy 

and engaged 

communities 

Achievements 

Opening of Community 

Bank Stadium 

After 10 years in the making, the $10.5 

million Community Bank Stadium in 

Diamond Creek was officially opened in 

February 2012 – the biggest single capital 

project ever undertaken by Council. 

The facility is managed by the YMCA and 

Jets Gymnastics and includes: 

• three indoor sports courts with 

retractable seating for 900 people 

• 1,200 square metre gymnastics 

space 

• viewing areas 

• community meeting space 

• performing arts space 

• a café. 

This flexible, modern facility can be 

used for sporting events and artistic 

performances. It has been widely used 

for sporting activities since it opened 

in February, and in June was set up in 

performance mode, with both Diamond 

Creek East Primary School and Diamond 

Valley College using the space for 

performance events. 

Collaborative approach to 

emergency management 

Ongoing engagement and cooperation 

with the CFA and other agencies has 

took place throughout the year. Fire 

Ready Victoria, Township Protection Plan 

consultation and Community Fireguard 

meetings were held. 

Collaborative working with other 

councils resulted in the sign off of agreed 

operation procedures. Inter-council 

training and exercising of emergency 

management arrangements also took 

place as planned. 

Implementing the Cultural Plan 

Growing our Arts and Culture, the 

2011–2017 Cultural Plan, was adopted in 

October 2011. 

The innovative Plan highlights a different 

aspect of art or culture each year and 

aims to support a range of community 

festivals and events, broaden the 

community’s access to and appreciation 

of Council’s art collection and support 

local arts, culture and heritage. 

The theme for the first year was People, 

place, partners and participation, and 

included the 52 Flashmobs in 52 Weeks’ 

project, the inaugural Ekphrasis Poetry 

Award and revised sponsorship and 

partnership agreements. 

Council budgeted $30,000 to implement 

the first year of the Plan, which has 

been augmented by $90,000 in external 

funding.



The 52 Flashmobs in 52 Weeks project 

engaged, surprised and entertained 

the local community with spontaneous 

performances in unexpected places. 

A group of people in Santa suits 

descended on the Diamond Valley Sports 

and Fitness Centre for a post-Christmas 

workout, laughing yogis gathered at 

Hurstbridge Farmers Market and young 

people performed a Glee-style dance 

routine in Greensborough Plaza. 

At the end of the financial year, the 

project was on track having completed 

30 mobs in 30 weeks. The project was 

fully funded by VicHealth ($75,000) and 

Regional Arts Fund ($15,000). 

The inaugural Ekphrasis Poetry Award 

celebrated the Nillumbik Art Collection 

and encouraged poets from Nillumbik 

and beyond to engage with 12 selected 

artworks. Ekphrasis is a form of poetry 

that explores works of art – usually 

paintings, photographs or statues – and 

seeks to get inside its visual subject. 

The Award attracted 116 entries from 

around Australia; the winning poems 

featured in a suite of postcards with 

their corresponding artworks, which 

were widely distributed to broaden 

the community’s access to and 

appreciation of Council’s Art 

Collection. 

At a glance 

Leisure facilities 

$8.35 million 

927,349 visits to Eltham Leisure 

Centre 

424,512 visits to Diamond Valley 

Sports and Fitness Centre 

26,635 visits to Diamond Creek 

Outdoor Pool 

282,230 visits to Diamond Creek 

Community Centre 

53,309 rounds of golf at Yarrambat 

Golf Course and 10,474 visits for the 

gym, meals and functions 

61,549 visits to Community Bank 

Stadium (opened February 2012) 

Aged and Disability SerVICES 

$2.3 million 

10,756 hours of domestic assistance 

6,457 hours of personal care 

7,237 hours of respite care 

878 hours of property maintenance 

9,813 meals delivered to 136 clients 

158 Community Bus shopping trips 

for 788 clients 

Satisfaction with community and leisure services 


Local library 

Children’s services 

Sports ovals 

7.75 

7.48 

8.23 

Senior’s services 

Bike paths 

Aquatic and 

Leisure Centres 

Youth Services 

7.47 

7.33 

7.26 

6.84 

1 2 3 4 5 6 7 8 9 10



Challenges 

Hurstbridge Family Centre – 

Funding and development 

options 

Work on the new Hurstbridge Family 

Centre was delayed due to design and 

budgetary issues. 

During the design phase of the new 

centre, flood issues and significant trees 

were identified on the site that meant 

more costly design and construction 

was needed. 

As Council was unable to secure 

additional state or federal government 

funding to cover the increased cost, a 

revised project plan was developed to 

renovate the existing community centre 

on Graysharps Road. 

In February 2012, Council purchased the 

former Hurstbridge Secondary School 

site where the existing community 

centre is located. A project manager 

and an architect were appointed for the 

redevelopment of the centre and an 

architect will soon be selected. 

The new Family Centre will provide long 

day care, occasional care, maternal and 

child health and allied health services 

while preschool programs will continue 

to operate from the existing Hurstbridge 

and Ferguson Park preschools. 

Disability access works – 

underway at Edendale 

As part of the disability access works 

program, building works began at 

Edendale, Council’s community 

education farm. 

The works, which include accessible 

signage, a walkway into the heritage 

homestead and entrance signs, provide 

greater access to the key training 

facility and will ensure it is inclusive and 

accessible for all users. Some access 

works delayed because they depend 

on the larger Edendale Landscape 

Masterplan project. The entrance signs 

and walkway are scheduled to be 

completed by the end of September. 

Access audits were also undertaken at 

a number of Council facilities, including 

the Civic Centre, and a works program 

was developed to address access issues 

identified in the audit. 

The year ahead 

Continuing to improve 

Eltham Lower Park 

Council continued to implement the 

Eltham Lower Park Masterplan as part 

of a $1.75 million redevelopment of one 

of the Shire’s most popular recreation 

spaces. 

The park entrance and car park 

upgraded were complete and the trail 

upgrade finished. 

Construction of the multi-access play 

space is nearing completion and in 

conjunction with the Rotary Club of 

Eltham shelters are being constructed 

within the playspace. Community 

members assisted with planting at the 

playspace which is due to be opened in 

the next financial year. 

The concept design for the new 

amenities block is progressing well with 

construction scheduled to be complete 

by late December 2012.



Performance at a glance – Council Plan 2009-2013 

Completed In progress Ongoing 

Council Plan Strategies Action status 

Engage with emergency agencies through the Municipal 

Fire Prevention Committee and Municipal Emergency 

Management Planning Committee and periodically review 

emergency plans for fire, flood, storm and other events. 

Integrate emergency management with 

business continuity planning to build 

organisational resilience. 

Engage with the Country Fire Authority, other fire agencies 

and the community on fire awareness and prevention 

though education programs, Community Fireguard and 

public information. 

Expand the collaborative approach to 

emergency management with other councils. 

Identify and implement fuel load and risk reduction strategies 

on public and private land and update the Municipal Fire 

Prevention Plan accordingly. 

Implement a fire management planning model 

and develop a risk based strategy 

Complete the bushfire prevention works 

program. 

Hold free green waste drop off weekends for 

residents. 

Implement recommendations from the Victorian Bushfires 

Royal Commission in conjunction with Victorian Government 

programs, Country Fire Authority and emergency agencies. 

Work with the State Government to develop 

and implement recommendations from the 

Victorian Bushfire Royal Commission. 

Provide a safe network of roads and footpaths. 

Complete bridge rehabilitation works. 

Complete erosion control works. 

Continue to support the recovery of communities in 

bushfire-affected areas. 

Prepare a Masterplan for St Andrews. 

Recovery to renewal – St Andrews, Strathewen 

and Christmas Hills. 

Support Landcare groups in bushfire-affected 

areas to develop and implement Community 

Environment Recovery Action Plans. 

Assist community groups to ensure their activities and 

facilities are accessible to all. 

Deliver the Access All Abilities program. 

Deliver community development programs to 

build social capital and resilience.






Ensure our policies and practices recognise, encourage and 

support the important role of volunteers. 

Volunteer Development Program 

implementation. 

Develop and maintain local halls and community facilities. 

Continue to investigate funding and 

development options for the Hurstbridge 

Family Centre. 

St Andrews Community Centre redevelopment. 

Develop a Masterplan for the Diamond Creek 

Community Centre Precinct. 

Maintain core community services that reflect the needs and 

expectations of the community. 

Deliver a range of aged and disability services. 

Deliver a range of youth services. 

Deliver a range of family and children’s 

services. 

Provide services that enhance public health and wellbeing. 

Attendance at Council’s major leisure centres. 

Review and implement the Municipal Early 

Years Plan. 

Develop and implement Positive Ageing 

strategies. 

Ensure registered premises comply with food 

safety regulations. 

Implement recreation and leisure projects including those 

identified in Diamond Creek twenty20, Eltham Structure 

Plan, Eltham North Masterplan, Eltham Lower Park 

Masterplan and the Recreation Strategy. 

Implement actions from the Eltham Lower Park 

Masterplan. 

Build significant community leisure assets such as the 

Diamond Creek Multi-purpose Stadium. 

Construct Community Bank Stadium in 

Diamond Creek. 

Develop and maintain the shared trails network throughout 

the Shire. 

Complete a review of the Recreation Trails 

Strategy. 

Resurfacing, safety improvements and 

upgrades of recreation trails. 

Develop access and equity policies that broaden the 

community’s benefits from Council facilities, programs and 

services. 

Complete the annual program of disability 

access works.






Maintain our recreation centres, sportsfields, playgrounds 

and parks. 

Implement the program of children’s 

playground works and shade structure 

renewal. 

Deliver the renewal, upgrade and expansion 

programs for Council’s sportsfields and 

pavilions. 

Support a range of community festivals and events. 

Support a range of community festivals and 

events. 

Continue to deliver services that contribute to life-long 

learning. 

Prepare and implement the Environmental 

Education Strategy. 

Provide a range of courses at Living & Learning 

Nillumbik that respond to the personal, 

professional, social and learning needs of 

community. 

Develop and maintain our cultural and heritage infrastructure 

including libraries and Living and Learning centres. 

Deliver contemporary library services to 

increase participation. 

Support local arts, culture and heritage through the 

Cultural Plan. 

Implement the Cultural Plan.



Year in Review 

July 2011 

Nillumbik Learning Tree 

Young rural families with children under 

five years received access to a free, 

exciting and engaging mobile learning 

and play activity. The Nillumbik Learning 

Tree – a dedicated learning and play 

centre visiting Arthurs Creek, North 

Warrandyte, Panton Hill and St Andrews 

each week – was funded by Nillumbik 

Best Start and delivered by Council in 

conjunction with Yarra Plenty Regional 

Library Service. 

August 2011 

Residents have say on 

Trails Network 

Nillumbik residents who enjoy getting 

outdoors to exercise were encouraged 

to have their say on Council’s 2011 Draft 

Trails Strategy. The Strategy outlines 

a vision to expand the existing trail 

network in Nillumbik so that residents 

can enjoy recreation in more places 

throughout the Shire and also link them 

to bordering municipalities and other 

regional trail networks. 

September 2011 

$20,410 goes to community 

Eight local community organisations 

received a total of $20,410 in funds from 

Council’s 2011-2012 Community Fund 

program. They included the Diamond 

Creek Community Garden – $1,310, 

St Andrews Community Film Society – 

$3,000, Eltham Little Theatre – $2,000 

and Diamond Valley Baptist Church 

-$3,000. 

October 2011 

Fire prevention works 

underway 

A comprehensive $650,000 program of 

bushfire prevention works on Councilowned 

roadsides and reserves to prepare 

the Shire for the next fire season began. 

The schedule involved works such as 

box clearance, slashing and vegetation 

removal at various locations across the 

Shire and was developed in consultation 

with the Municipal Fire Prevention 

Committee and local fire brigades. 

Month-long senior’s 

celebration 

The beginning of Nillumbik’s first annual 

month-long Senior’s Festival ‘Living well 

and ageing even better’ was a success, 

with participants joining in 25 events. 

The headline event for the festival, in 

partnership with the Nillumbik Women’s 

Network, was a forum with aged care 

expert Roland Naufal at which 70 

participants learned about the latest 

international research on how to age 

with choice, connection and control, and 

how to influence decision-makers to get 

better outcomes for the aged. 

Throughout the year a number of 

opportunities were given to community 

members to propose recommendations 

to Council about issues related to ageing 

which will contribute towards Council’s 

Positive Ageing Strategy in the next 

financial year. 

At a glance 

Library Services 

$2.61 million 

93,632 visits and 336,490 loans at 

Diamond Valley Library 

237,194 visits and 591,807 loans at 

Eltham Library 

32,773 mobile library loans 

5,271 outreach services loans 

Family and Children Services 

$2.0 million 

765 children registered for preschool 

34,517 visits to Family and Children’s 

Services website 

627 birth notifications 

86 children accessing Family 

Day Care 

80 families accessing Family 

Day Care




November 2011 

Living & Learning locally 

Living & Learning Nillumbik released 

its 2012 program offering more than 

100 courses for everyone regardless 

of age. Classes including computers 

and technology, art, craft, textiles, 

photographing, gardening, dance, 

music, cookery and languages as well 

as nationally recognised courses such as 

Certificate IV in Disability, Certificate IV in 

Training and Assessment and Certificate 

III in Aged Care are available across the 

three Living & Learning Nillumbik centres. 

Increase in pet registrations 

An annual review of Council’s Domestic 

Animal Management Plan revealed 

an increase in pet registrations within 

the Shire, following the introduction 

of an extra level in the registration fee 

structure. Council created a financial 

incentive to both dog and cat owners by 

introducing a new pet registration fee of 

$33 for desexed and microchipped pets. 

Handy guide to transport 

Older residents and those with a disability 

are able to find all the information they need 

about transport, following the publication 

of Nillumbik’s first Handy transport guide. 

Produced by the Nillumbik Transport 

Connections Program, the guide features 

up-to-date information about different 

transport options within Nillumbik, and 

beyond, for older people and those with a 

disability, who don’t drive. 

December 2011 

Nillumbik hit by storms 

The Christmas Day storms wreaked 

havoc across parts of the Shire, with 

widespread damage across a range of 

Council buildings, roads and bridges. 

Some 120 calls to the after-hours 

emergency service were received in the 

days following the storms, all of which 

had an initial response or assessment 

within a few days. 

Council’s footbridges and roads were 

reopened in January and the repair of 

roads and drains continued throughout 

this month. More than 400 residents took 

advantage of Council’s free green waste 

service to dispose of fallen tree branches 

and other garden debris. 

Janua ry 2012 

Australia Day: 

local volunteer awarded 

Well-known Strathewen resident 

Bronwyn South was awarded the 2012 

Nillumbik Citizen of the Year award for 

her outstanding contribution to her local 

community and surrounding environment 

over many years. The award was 

announced at Council’s Australia Day 

celebration, which included a citizenship 

ceremony in which 38 local residents 

became Australian citizens. 

At a glance 

Animal serVICES 

$54,000 

10,790 dogs registered 

3,086 cats registered 

390 dogs impounded 

8 types of livestock impounded 

Annual Pet Expo held in October 

Three microchipping days held 

Two free dog training courses held 

Living & Learning Nillumbik 

$1.57 million 

420 programs run 

8,103 program hours delivered 

619 male enrolments 

3,274 female enrolments 

4,084 total enrolments 

6,720 attendances across all 

Living & Learning Playhouses




Glee Club, fun for the young 

Young people with a passion for singing 

were invited to sign up to be part of the 

Nillumbik Glee Club run by Council’s 

Youth Services and Arts and Cultural 

Development. Glee Club provides young 

people with the chance to get involved 

in a fun and inclusive singing group, 

meeting other young people to share 

their passion for music. 

Februa ry 2012 

Community centre for 

St Andrews 

The redevelopment of the St Andrews 

Community Centre received a Victorian 

Government grant of $300,000. The 

community-led development will 

transform the ageing and inadequate 

community facility into a flexible and 

vibrant centre for local events and 

activities. The $2.5 million redevelopment 

project also involves financial 

contributions from Council and the 

Victorian Bushfire Appeal Fund. 

Ma y 2012 

Grant seals skate park deal 

It was announced that Council will 

receive $100,000 in funding from Sport 

and Recreation Victoria to build a skate 

park in Hurstbridge. The Hurstbridge 

Skate Park project will cost an estimated 

$290,000 with Council making a 

commitment of $190,000 in the 2012- 

2013 budget. 

Reconciliation Week 

in Nillumbik 

Council celebrated National Reconciliation 

Week with a community flag raising 

ceremony and morning tea. Reconciliation 

Week is held between 27 May and 3 

June each year to commemorate the 

anniversaries of two significant events: 

the 1967 referendum that gave the 

Commonwealth the power to make laws for 

Aboriginal and Torres Strait Islander peoples 

and recognise them in the national census, 

and the High Court Mabo decision that 

paved the way for Native Title land rights. 

Jun e 2012 

Nillumbik Prize: Bottaro’s 

Floating Time 

The winner of the 2012 Nillumbik Prize 

was announced with Eolo Paul Bottaro 

taking out the $5,000 prize for his 

painting Floating Time. The Prize was 

judged by Dr Vincent Alessi, Artistic 

Director at La Trobe University Museum 

of Art, who said Bottaro’s work excelled 

both in its technical execution and its 

conceptual rationale. 

At a glance 

Youth SerVICES 

$470,000 

35 young people took part in the 

L2P program, completing 1,478 

driving hours instructed by 24 driving 

mentors. Nine young people obtained 

their drivers’ licence 

10,798 visits to Youth Services 

website and 99 people joined the 

Facebook page 

110 young people attended youth 

Flash Mobs 

126 young people attended the 

St Andrews Youth group (SAY) and 

135 attended the Strathewen group 

150 attended the Diamond Valley 

College Wellbeing Centre 

600 young people attended the 

Youth Week An Anxious Production 

Phunkional Theatre 

240 young people and their parents 

attended the Youth Expo in the 

Eltham Town Square 

100 attended the North Western 

Skate/BMX competition in September 

at Diamond Creek Skate Park 

2,001 people attended FReeZa music 

and youth culture events 

96 took part in the iNSIGHT 

photographic program


Ou r en vironmen t 



OUR ENVIRONMENT 

A sustainable 

and wellmanaged 

natural and built 

environment 

Achievements 

Nillumbik Biodiversity Strategy 

Council adopted its Biodiversity Strategy, 

which will guide biodiversity management 

across Nillumbik, into the future. 

The Biodiversity Strategy aims to raise 

awareness of the significant local 

species, conservation of ecosystems, fire 

management and biodiversity recovery 

response and support the community in 

protecting and enhancing biodiversity. 

Nillumbik is home to more than 1,000 

indigenous flora species including some 

orchid species not found anywhere 

else and 342 indigenous fauna species 

including the Brush-tailed Phascogale, 

Sugar Glider and the rare Eltham 

Copper Butterfly. 

The Strategy also informs biodiversity 

programs and sets standards and 

targets for the Shire to guide Council in 

implementing conservation programs, 

target program funding and budget 

for cost-effective on-ground works 

programs. 

Natural Environment Recovery 

Working Group awarded 

The Natural Environment Recovery 

Working Group was awarded the 

Landcare Bushfire Recovery Award in 

2011 in recognition of its outstanding 

community and environmental efforts. 

The Council-supported group was 

formed to ensure a coordinated 

approach to natural environment recovery 

following the Black Saturday bushfires, 

and includes residents from bushfireaffected 

communities in Christmas Hills, 

St Andrews and Strathewen. 

Around 40 erosion projects were 

completed on private property, and more 

work is planned. The group continued 

to meet every four weeks to coordinate 

recovery works across property 

boundaries. 

Council’s Environmental Planning team 

provides administrative support to the 

working group.



Challenges 

Develop a scope for an 

Integrated Neighbourhood 

Strategy 

Initial work has been carried out 

concerning demographic change and 

housing stock analysis. 

The remainder of the Integrated 

Neighbourhood Character and Housing 

Strategy was placed on hold pending 

the release of the Victorian Government’s 

new Residential Zones. 

The project is to recommence following 

the finalisation of the new zones. 

Complete a service review 

of Council’s open space 

maintenance 

Work continued on the service reviews 

for Open Space Maintenance and Roads 

Maintenance, which were due to be 

reported to the Service Reviews Advisory 

Committee in July 2012. 

Processing Council’s 

green waste 

The facility processing Council’s green 

waste closed in 2009 and Nillumbik, 

along with other councils in the region 

were forced to divert green waste to 

landfill ever since. 

Council entered into a contract in 

the 2011-2012 financial year with 

Veolia Environmental Services P/L, 

together with the Metropolitan Waste 

Management Group and 10 other 

Councils in the northern and western 

suburbs of Melbourne. 

This will provide a state of the art 

green waste processing facility which 

is expected to start processing mixed 

garden and food organic waste early 

in 2013. 

It is expected that Nillumbik’s diversion 

rate will return to its former high levels 

which is an accurate reflection of the 

Nillumbik community’s commitment to 

resource recovery. 

At a glance 

Building and Planning 

Services 

$1.39 million 

30 building permits for dwellings issued 

24 building permits for alterations and 

additions issued 

5 commercial building permits issued 

125 miscellaneous building 

permits issued 

51 dispensations made 

536 decisions made on planning 

applications 

363 amendments to permit decisions 

74 miscellaneous consent decisions 

17 Bushfire Rebuilding site 

plans issued 

1,064 planning decisions made with 

96.4% applications approved 

76% VCAT decisions upheld 

Nillumbik Environmental Building 

Surveyors had a 22.6% 

market share 

Waste and recycling services 

$5.67 million 

536,484 waste and recycling 

collections provided 

1,072,968 green organics collections 

provided 

Total collections provided 2,145,936 

6 free green waste drop off days




Edendale Masterplan 

The Edendale Landscape Masterplan 

was completed and sets out priority 

zones for implementation. 

The first stage of works will include 

redeveloping the animal nursery area, 

developing water sensitive drainage 

around the car park, developing the 

garden around the homestead and 

creating accessible pathways to connect 

the car park with key buildings. 

Work began on an accessible walkway at 

the front of the homestead. 

In the coming year, the first stage of the 

Edendale Landscape Masterplan will be 

implemented to transform Edendale into 

a more accessible, interactive community 

and education centre for the benefit of 

the whole community. 

Commence the Long Gully 

section of the Wattle Glen to 

Kinglake Recreation Trail 

A draft detailed design was completed 

and Council officers are now confirming 

this with key stakeholders. In August, 

quotes for construction will be 

sought from the panel of trail building 

contractors. 

Construction is scheduled to begin in 

December 2012. 

Planning for the 

Civic Drive precinct 

In December 2011, Council adopted 

the Civic Drive Precinct Concept 

Development Plan and in May 2012 

resolved to sell 30 lots at Civic Drive. 

This involves initiating a permit 

application for a Plan of Subdivision 

and a Planning Scheme Amendment to 

rezone the land to Residential 1 Zone. 

The Concept Development Plan also 

includes options for developing new 

community facilities on the western part 

of the site, including a new playground, 

barbecue and shelter, a fitness trail, 

public toilets, a possible outdoor half-size 

basketball court and landscaping around 

with the existing amphitheatre. 

Council is continues to work towards 

developing a more detailed plan for this 

community area. 

At a glance 

Infrastructure Maintenance 

$7.89 million 

428 kilometres of sealed roads 

maintained 

343 kilometres of unsealed roads 

maintained 

30 hectares of ovals were mowed 

26 times 

513 hectares of open space and 

reserves maintained 

322 kilometres of roadsides 

maintained 

348 buildings maintained 

29 toilet blocks maintained 

1,203 drainage pits inspected 

69 playground inspections 

16,776 requests for service 

Public Health SerVICES 

$611,215 

65 statutory food samples taken and 

analysed 

77 septic tank applications were 

lodged resulting in 117 inspections 

being undertaken 

130 general service requests of public 

health officers 

53 tobacco education visits and 54 

tobacco test purchases undertaken 

441 inspections of registered 

premises 

72 Immunisation sessions held, with 

5590 immunisations administered



Satisfaction with aspects of planning 

and housing development 


Maintaining 

local heritage 

Appearance and quality 

of new development 

Effectiveness of 

consultation 

Accessibilty of 

information 

Communication of 

decisions 

Opportunities 

to participate 

5.77 

5.77 

6.35 

6.2 

6.18 

6 

At a glance 

Asset MANAGEMENT 

$592,888 

4,088 inspections for defects on 

roads and footpaths 

2,055 defects found on roads and 

footpaths implemented under the 

Road Management Plan 

4,726 written responses for general 

engineering enquiries, asset 

protection letters and applications for 

stormwater or dispensation 

Timeliness of 

decisions 

5.4 

1 2 3 4 5 6 7 8 9 10 

Satisfaction with waste collection services 


Weekly garbage 

collection 

Regular 

recycling 

Green waste 

collection 

Hard rubbish 

collection 

7.95 

7.68 

7.61 

7.07 

1 2 3 4 5 6 7 8 9 10






Support, inform and encourage cooperation between 

landowners on how to manage their land. 

Assist with private land rehabilitation in fireaffected 

areas. 

Continue to reassess and improve maintenance and 

management of vegetation on Council land. 

Complete a service review of Council’s open 

space maintenance. 

Improve the presentation of our open space areas. 

Complete phase 1 of the Bell Street, 

Eltham Masterplan. 

Complete the works program for 

Public Open Space. 

Recognise our responsibility in managing and protecting the 

Green Wedge. 

Implement actions from the Panton Hill 

Bushland Reserve System Management Plan. 

Continue to improve Council’s waste management 

programs and reduce our energy and water consumption. 

Increase the diversion of waste from landfill; 

annual hard waste collection in 2011 diverted 

28 tonnes of e-waste from landfill, plus steel 

and mattresses. Green waste is due to be 

diverted from landfill to composting from 

early 2013. 

Consider and respond to the impacts of climate change on 

Council and community programs and services. 

Support community energy saving initiatives 

through the VALID green home program across 

200 households. 

Due to a lack 

of funding 

this action 

was not 

achieved. 

Implement sustainable maintenance practices for 

Council assets. 

Undertake rehabilitation works at the former 

Kangaroo Ground and Plenty landfill sites. 

Maintain and improve our drainage systems and other water 

infrastructure. 

Programmed drainage upgrade works in Bible 

Street and Moola Place completed. 

Effectively use Council’s resources in providing 

environmental education facilities and programs. 

Continue implementation of the Edendale 

Masterplan.






Improve traffic management throughout the Shire. 

Deliver the program of scheduled traffic works. 

Increase bicycle and pedestrian usage by expanding 

facilities and programs throughout the Shire. 

Commence the Long Gully section of the 

Wattle Glen to Kinglake Recreation Trail. 

Develop and maintain our road and footpath network. 

Complete the Footpath Renewal Program. 

Deliver the periodic roads maintenance 

program and special charge schemes. 

Encourage medium density development that is consistent 

with local character and Council’s strategic direction. 

Develop a scope for an Integrated 

Neighbourhood Strategy 

Facilitate development opportunities in smaller townships 

and neighbourhood activity centres. 

Develop a Civic Drive precinct concept plan. 

Continue to implement structure plans for major 

activity centres. 

Progress initiatives within the Eltham and 

Diamond Creek Major Activity Centre 

Structure Plans. 

Ensure the planning scheme is up-to-date. 

Complete the draft Biodiversity Strategy and 

ESO Review.





Solar panels for 

Council buildings 

Solar panels were installed at Council’s 

Operations Centre in Plenty as part of 

its new Carbon Management Strategy, 

which addresses Council’s role in the 

ongoing response to climate change. 

Council has taken a leadership role by 

offsetting emissions from energy use and 

by looking at more sustainable ways of 

providing power to Council buildings. 

Kids Teach Kids at conference 

Fourteen students from three Nillumbik 

schools joined forces with more than 450 

others to share water saving ideas at the 

Kids Teaching Kids Conference. Council’s 

sponsorship of the students, through 

the environmental education program 

at Edendale, Council’s community 

environment farm, helped raise 

awareness among school-aged children 

on the importance of saving water at 

school and home. 


Cash incentives for landowners 

Council introduced a new and improved 

Land Management Incentive Program 

for landowners in rural parts of the Shire. 

The program offers grants to individual 

landholders and community groups for 

activities such as weed and pest control 

works, revegetation and vegetation 

enhancement works and property and 

farm management courses that provide 

ecological and environmental benefits on 

private land within Nillumbik. 

September 2011 

Plan to protect 

Nillumbik heritage 

Council adopted the Nillumbik Heritage 

Strategy – a plan that will help guide its 

heritage activities into the future. It will 

also help identify and protect the Shire’s 

cultural heritage so it can be enjoyed and 

appreciated by generations of residents 

and visitors. 

October 2011 

‘Practically Green’ 

locals awarded 

The winners of the inaugural Practically 

Green Sustainability Awards were 

announced as part of Council’s 

Practically Green Festival, which is all 

about eco-building and sustainable living. 

Council introduced the Awards to 

promote excellence in sustainability 

within the Nillumbik community and 

celebrate local people for their efforts. 

Winners were announced in categories, 

which included the Historic Building 

Award, New Building Award and 

Sustainable Home Award for buildings. 

There were also awards for Environment 

Business, Small to Medium Business, 

Community Organisations and School or 

Children’s Centre. 

November 

Panton Hill user group formed 

Council appointed six community 

members to the Panton Hill Bushland 

Reserves System User Group Committee 

in November and they met a number of 

times throughout the year. 

The Committee provides opportunities 

for volunteers to engage in activities 

that protect the values of the reserves 

and help manage user impacts.The 

group coordinated a working bee at 

the reserves which involved weeding, 

landscaping the gully crossing over the 

realigned culvert pipe and some planting. 

December 2011 

Thanks to our volunteers 

The Shire’s many environment volunteers 

were thanked for their hard work at a 

special event to celebrate the year’s 

achievements. 

The event was attended by more than 

100 people from Friends Groups, 

Landcare Groups, Waterwatch, Council’s 

Environment Advisory Committee, 

Edendale Advisory Committee, Edendale 

and Climate Action Groups. 

Nillumbik GM-free 

Council adopted a precautionary 

approach to the introduction of 

Genetically Modified Organism (GMO) 

crops in Nillumbik, resolving to lobby the 

State Government to see labelling of all 

products made using gene technology 

mandatory, GM-free zones established 

and crops grown safely, until independent 

research shows specific GMOs are 

harmless to health and the environment 

and until a strong and enforceable liability 

and insurance regime is in place for 

GMO products.




Janua ry 2012 

$30k grant for Bell Street land 

Council received a State Government 

grant of $30,000 to establish a 

Masterplan for vacant land in Bell 

Street, Eltham. The Department of 

Planning and Community Development 

grant enables Council to work closely 

with the community to plan the future 

uses of the public space, which has 

high environmental and community 

significance. 

April 2012 

Regional Feast from 

Home Harvest 

The inaugural Home Harvest Regional 

Feast was hosted by Council – one of the 

first of its kind in the region with more than 

100 local people contributing homegrown 

produce to the communal feast. 

The Home Harvest Regional Feast initiative 

supports the development of sustainable 

communities through the creation of local 

food systems of which home produce 

gardens are an integral part. 


Hurstbridge site secured 

After more than 10 years of negotiation, 

Council and the Department of 

Education and Early Childhood 

Development signed a contract securing 

the purchase of the former Hurstbridge 

Secondary School site. 

The negotiations also included the 

sale of two pieces of surplus Councilowned 

land, one by Apollo Parkways 

Primary School and the other by 

Kangaroo Ground Primary School, to 

the Department of Education and Early 

Childhood Development. 

The land and property includes a 

gymnasium, car park, tennis courts, 

existing ovals and creek area – a total of 

7.338 hectares or around 18 acres. 

Jun e 2012 

Grant gain for Butterfly 

Our environment 

The Friends of Eltham Copper Butterfly 

received a $459,000 Communities for 

Nature grant from the Department of 

Sustainability and Environment. The 

group is dedicated to the conservation 

of the butterfly since it was rediscovered 

in the Eltham area in 1987, long after the 

butterfly was originally declared extinct. 

Students pave path to Council 

A special recycled material was used 

to pave a path at the Arthurs Creek 

recreation reserve following a campaign 

from local primary school students. The 

path is a great example of Council and 

the local community working together 

which started when students from the 

local primary school presented a petition 

to Council requesting the construction of 

the path that allow them to travel safely 

to and from school.



Ou r economy 



OUR ECONOMY 

A vibrant local 

economy 

Achievements 

Parking precinct plan 

for Eltham 

A draft Eltham Car Parking Strategy to 

address urgent car parking issues within 

Eltham town centre – the Shire’s major 

activity centre – was endorsed by Council 

and released for public comment. 

The preparation of a Parking Strategy/ 

Management Plan and Parking Precinct 

Plan for Eltham was identified as priority 

actions in the Nillumbik Major Activity 

Centres Sustainable Transport Study 

and Strategy. 

Consultants prepared the draft, which 

contained findings and a number of 

recommendations to guide parking 

management and future car parking 

requirements in the Eltham Major 

Activity Centre. 

The plan aims to: 

• identify shortfalls in existing short 

and long term parking provisions 

and strategies to address any 

identified shortfalls 

• establish the future demand for 

parking spaces within the Eltham 

Activity Centre 

• identify tools to manage existing 

and future parking demands and 

their impacts 

• develop documentation to incorporate 

the Car Parking Strategy for Eltham 

into the Nillumbik Planning Scheme 

to provide a statutory framework for 

addressing car parking. 

Council prioritised the completion of 

the Eltham Strategy ahead of Diamond 

Creek; a draft of the Diamond Creek 

Car Parking Strategy was expected 

by August 2012, followed by public 

exhibition. 

Hurstbridge streetscape works 

A $170,000 capital works program to 

improve pedestrian safety and make it 

easier for residents to move around the 

Hurstbridge town centre was carried out 

with further work due to take place in the 

2012-2013 financial year. 

Works included: 

• footpath widening and improvement 

works from Anzac Avenue to 

Bendigo Bank 

• reconstructing the driveway entrance 

to the IGA supermarket, including 

upgrading of the footpath 

• improvements to the carpark in 

Anzac Avenue which included 

construction of new carparks and 

improvements to the footpaths 

• replacing the existing pedestrian 

ramp near the town square to be 

fully accessible.


OUR ECONOMY 

Challenges 

Redeveloping 

Eltham Town Square 

Council endorsed a draft Concept Plan 

for the redevelopment of Eltham Town 

Square which aims to inject more activity 

and life into the area, making it a more 

vibrant and attractive space for dining 

and shopping, as well as a destination in 

its own right as the gateway to the Green 

Wedge and nearby Yarra Valley. 

The Concept Plan also proposes 

to create more community facilities, 

including public toilets, baby change 

facilities, seating, bike racks, enhanced 

landscaping and possibly a children’s 

play area. It was released for community 

comment throughout June 2012. 

A range of actions to confirm the financial 

viability of the redevelopment project 

will be investigated and budget was 

allocated to support these actions. 

The section of Commercial Place that 

runs through the Town Square was 

successfully converted from a roadway 

to a mall. The Eltham Town Square 

and other projects within the Eltham 

Major Activity Centre Structure Plan will 

continue in the 2012-2013 financial year. 


Implementing the Economic 

Development Strategy 

2010-2013 

Council appointed 10 community 

members and business leaders to 

its Economic Development Advisory 

Committee to provide advice on 

significant economic development 

initiatives in Nillumbik. 

The Committee members were selected 

because of their familiarity, appreciation, 

connection and ongoing interest in 

Nillumbik and its economic development. 

These members are in an ideal position 

to foster a cooperative relationship 

between Council and the Nillumbik 

business community. 

The Committee has an important 

ongoing role to play in implementing 

the actions outlined in the Nillumbik 

Economic Development Strategy – one of 

Council’s major strategic plans designed 

to enhance the wellbeing of communities 

by encouraging the development of a 

vibrant and sustainable local economy. 

Other projects associated with the 

Economic Development Strategy 

included Amendment C51 and C53 

to facilitate investment in Eltham and 

Diamond Creek town centres; supporting 

the Hurstbridge Farmers’ Market, the 

Artists Open Studios and the various 

local business associations in the Shire. 

At a glance 

Local laws 

$1.05 million 

5,695 parking notices issued 

773 animal notices issued 

22 local law notices issued 

801 disabled parking permits issued 

over the past 12 months bringing 

the total to 1,733


OUR ECONOMY 

Satisfaction with availability 

of parking by precinct 


Importance of and satisfaction 

with maintenance and cleaning of 

shopping strips 


Eltham North 

6.35 

Melbourne 

8.35 

Eltham 

6.33 


8.53 

Diamond Creek 

6.12 

Melbourne 

6.76 

Rural 

5.98 


6.76 

Greensborough 

5.85 

1 2 3 4 5 6 7 8 9 10 

Melbourne 

5.77 

Importance 

Satisfaction 

1 2 3 4 5 6 7 8 9 10 




Support opportunities that will generate local jobs and 

business activities 

Implement actions from the Economic 

Development Strategy 2010-2013 

Support measures that facilitate the expansion and 

enhancement of the commercial economic base and local 

employment 

Develop a Parking Precinct Plan 

Support measures that improve the amenity, access and 

facilities in commercial precincts 

Redevelop Eltham Town Square 

Undertake Stage 1 of the Hurstbridge 

streetscape works 

Implement the parking overstay 

detection system


OUR ECONOMY 



Rural Business Network 

launched 

Local bushfire-affected business 

owners, with support from Council, 

came together to create the Nillumbik 

Rural Business Network – a local forum 

supporting rural business. 

It gave the 500-plus businesses based 

in the bushfire-affected areas of St 

Andrews, Strathewen and surrounds 

a central, local forum to share ideas, 

develop their business, encourage 

people to shop locally and get 

information on training opportunities. 


Locals help shape Eltham 

Nominations were called for community 

and business representatives for the 

Eltham Major Activity Centre (Eltham 

MAC) Development Forum – a 

consultative group that will help shape 

the future of Eltham. 

Council created the Forum to ensure 

development in the Eltham town centre is 

based on advice of community members, 

local traders, landowners and users of 

the town centre. 

Ma rch 2012 

Nillumbik business 

nominees announced 

Council’s two local business nominees 

– IPM Technologies and Indigenous 

Design Land Management – were 

named the Nillumbik Northern Business 

Achievement Award winners at a 

Council-hosted business breakfast. 

April 2012 

Best laid plans for parking 

A project to develop parking 

management plans and parking precinct 

plans for the Shire’s major activity centres 

– Eltham and Diamond Creek – was 

commissioned by Council. 

The current state of parking management 

in each centre was evaluated and 

best practice parking management 

recommendations provided. 


Community link to economy 

Ten community members were appointed 

to Council’s Economic Development 

Advisory Committee following a 

nomination period. Expressions of interest 

were sought from business leaders 

and community members who could 

provide advice on significant economic 

development initiatives in the Shire 

and who were best placed to foster a 

cooperative relationship between Council 

and the local business community. 

Electronic car park 

monitoring commences 

An electronic parking detection system 

was introduced in the Shire’s major 

activity centres to stimulate a greater 

availability or turnover of parking spaces. 

The system monitors the length of time 

a car spends in a space using sensors 

installed underneath parking spaces and 

technology which reads license plate 

numbers. Parking inspectors receive an 

alert if a vehicle exceeds the time limit to 

conduct a check on the vehicle. 

green4business 

breakfast seminar 

Council invited small business owners 

to its business and sustainability 

breakfast seminar green4business 

featuring guest speaker, Ralph Plarre, 

Ferguson Plarre Bakehouses co-owner 

and environmental leader. The ‘hottest’ 

environmental questions facing small 

businesses were answered in a thoughtprovoking 

discussion that also covered 

embedding sustainable practices into a 

small business, reducing impacts on the 

environment and making a profit while 

making a difference.



Ou r coun cil 



OUR COUNCIL 

A respected and 

accountable 

Council, 

committed to 

innovative and 

continuous 

improvement 

Achievements 

Grants and advocacy 

Council was successful in obtaining 42 

grants valued at $7.2 million during the 

financial year. They included: 

• $300,000 from the Department 

of Planning and Community 

Development towards the St Andrews 

Community Centre Redevelopment 

• $182,447 from the Victorian Bushfire 

Appeal Fund towards the St Andrews 

Community Centre Redevelopment 

• $133,394 from VicRoads for the 

children’s crossing supervisor scheme 

• $137,500 from DSE for the Urban 

Fringe Weed Management Initiative 

• $43,622 from DPCD for the 

Neighbourhood House Coordination 

Program 

• $75,000 from VicHealth for the 52 

Flashmobs in 52 weeks project. 

Council maximised its advocacy 

opportunities endorsing submissions to a 

variety of reviews and enquiries as well as 

advocating directly to both the Victorian 

and Australian Governments. 

Developing a 

community vision 

Between October 2011 and June 

2012, Council engaged place-making 

consultants to ask Nillumbik residents a 

seemingly simple question – ‘what is your 

vision for your local community 

Community groups, schools and 

residents were invited to identify what is 

important to them and their local area. 

The project received more than 500 

responses, online submissions, 

interviews and workshop contributions 

and drew on extensive consultation 

previously undertaken by Council. 

A draft community-visioning document 

– Picture Nillumbik – was released for 

public comment in June. It explored the 

values and ambitions of the community 

that were expressed through the broad 

community consultation and aimed to 

collect valued community input to future 

Council planning activities. 

The Picture Nillumbik community vision 

document identified six values most 

important to Nillumbik residents. 

1. Local village life 

2. Deep connection and resilient 

community 

3. Balance with nature 

4. A sustaining and evolving economy 

5. Creative expression, art and 

cultural exchange 

6. Experience, discovery and fulfilment. 

New website launched 

Council’s new website went live on 

7 December 2011, using the Seamless 

web content management system 

procured through the joint tender 

carried out by the MAV on behalf of 

22 Victorian Councils. 

Providing easier navigation and clearer, 

more succinct information for residents 

and visitors, the website has a ‘near to 

me’ function on the home page which 

allows residents to type in their address 

and receive information about their 

local ward and Councillor, capital works 

projects and community facilities. 

Wayfarer sculpture by Deborah Halpern


OUR COUNCIL 

Civic Centre upgrade 

The $7.5 million Civic Centre 

refurbishment project, which attracted 

a $3 million grant from the Federal 

Government, was officially opened in 

December 2011 after almost two years 

of renovations. 

The significant transformation to the 

interior of the Greensborough Civic 

Centre built in 1972 to house the former 

Shire of Diamond Valley, began in 

January 2010 with a 400 square metre 

extension to the office area on the 

western side of the building, which was 

completed in August that year. 


held offsite from April to October 2011 to 

allow for the works. 

The final stages finished late in 2011 

with the first meeting in the new Council 

Chamber held in November and the foyer 

and reception areas, opened two days 

before Christmas. 

The Civic Centre now provides 

contemporary open-plan office areas 

for staff, new Council Chamber and 

multifunctional meeting spaces and a bright 

and spacious new reception area providing 

much improved facilities for customers. 

iPad rollout 

iPad tablets were provided to Councillors 

and senior staff to make it easier to 

communicate from remote locations and to 

eliminate the need for hard copies of Council 

agendas and other business papers. 

The new technology has been embraced 

by users despite some challenges around 

the data size of electronic documents 

and the security of confidential electronic 

documents. The trial continues. 

Satisfaction with aspects of customer service 


General Reception 

Care and attention 

Provision of information 

Speed of service 

Courtesy of service 

Opening hours 

Access to relevant officer 

6.85 

7.27 

7.21 

7.77 

7.32 

7.87 

7.74 

1 2 3 4 5 6 7 8 9 10 

Nillumbik residents’ preferred methods of 

receiving information from Council. 


Method 

Number Percent 

Direct mail/letterbox drop of information 281 55.4% 

Articles in local newspapers 237 46.7% 

Council’s regular publication delivered quarterly 214 42.2% 

Council websites 182 35.9% 

Council adverts/column in local newspaper 158 31.2% 

Telephone Council Customer Centres 136 26.8% 

In person at local library 109 21.5% 

In person at Customer Service centre 90 17.8% 

Local radio 68 13.4% 

Communicating with Ward Councillor 55 13.4% 

Social media (e.g. Facebook, Twitter) 42 8.3% 

Email 23 4.5% 

Total responses 1,595 

Total responsdents providing response 489 (96.4%)


OUR COUNCIL 

Challenges 

Social media to engage with 

the community 

The use of social media as a timely 

and efficient way to communicate with 

residents did not occur as quickly as 

expected due to security issues with 

Council’s IT systems. 

A social media policy was developed 

and adopted and staff received training 

on the use of social media and how to 

market their social media sites. 

Aquatic redevelopment study 

at Eltham Leisure Centre 

Staff turnover within the Leisure Services 

team meant that the timeframes on this 

project were delayed. 

Stage one of the project was able to begin 

with a detailed project management plan 

developed and the establishment of a 

Stakeholder Advisory Group. 

An assessment of aquatic needs and 

demands; benchmarking with other 

aquatic facilities and financial modelling 

will follow. 


Improved project management 

The second stage of a Project 

Management Framework was completed 

and used on nearly all major projects 

within Council. 

A curriculum was piloted and will 

continue in the next financial year with 

basic and advanced training for all staff. 

Project managers working on key 

projects will receive individual coaching 

and a pool of mentors will spread the 

support of the Project Management 

Framework across the organisation. 

Service Excellence Charter 

Council’s Service Excellence Charter will 

be redeveloped for external and internal 

audiences. 

The external charter will highlight service 

promises that customers can expect 

from Council as well as a complaint 

handling guide. 

The internal charter will outline 

detailed service standards and service 

expectations of Council staff. 

At a glance 

governance 

AND communications 

174 media releases issued 

Responses provided to 300 

media enquiries 

230 publications produced 

Four citizenship ceremonies held, 

including Australia Day 

25,000 visitors to the Customer 

Service counter at the Civic Centre 

65,000 telephone calls received 

30,000 payments made at the 

Customer Service counter 

8,500 customer requests logged into 

our system 

Agendas and minutes produced for 

33 Council and Committee meetings


OUR COUNCIL 




Increase the number of rateable properties consistent with 

Council’s Planning Framework. 

Complete the property revaluations for 2012. 

Ensure our services are efficient and deliver good value 

for ratepayers. 

Increase market share of building applications 

to a minimum of 25 per cent within the Shire. 

Maintain good results on external audits and Auditor- 

General sustainability measures. 

Manage Council’s financial performance in line 

with the Auditor-General’s Risk Assessment 

Framework. 

Consult with our community to help us be informed and 

make better decisions. 

Review Council’s Community Consultation 

Framework to ensure effective processes are 

used across the organization. 

Ensure we have a skilled and enthusiastic workforce that 

meets the needs of our organisation and the community. 

Provide ongoing learning and development 

for staff. 

Ensure continuous improvement in Council processes 

and systems. 

Develop an Information Technology Strategy 

for 2011-2014. 

Improve planning applications processes. 

Process planning applications in a timely manner. 

Further develop sound asset management policy and plans 

that meet financial and environmental standards. 

Undertake asset management audits and 

update video footage of Council’s roads, 

carparks and footpaths. 

Maintain an effective and strategic approach to managing 

Council’s risks. 

Review the Risk Management Strategy 

and periodically text Council’s business 

continuity plans.


OUR COUNCIL 



Shock at library funding cuts 

Nillumbik joined with other councils 

across Victoria and refused to agree to 

cuts made by the Victorian Government 

to library services. 

Council was shocked to discover that 

without warning or explanation the 

Government had cut its recurrent funding 

contribution for public library operating 

costs, meaning a loss of more than 

$11,000 this year and more over the 

coming four years for local libraries. 


Council meetings in rural areas 

The program of offsite Council meetings 

held in the some of the Shire’s smaller 

rural communities continued with the 

August meeting held in St Andrews. 


held offsite from April-November as 

Stage 4 of the Civic Centre refurbishment 

project – which included the Council 

Chamber and adjacent meeting rooms – 

took place. 

November 2011 

New ad keeps residents 

informed 

A new advert in the Leader newspaper 

started to appear every fortnight from 

November onwards. The ad meant that 

residents now need only look in one 

place in the newspaper to find out what 

Council has on offer. 

It informs residents about the events and 

functions taking place across the Shire 

and also has an informative article from 

the Mayor about the strategic direction of 

the organisation. 

Ma rch 2012 

Essential services in-house 

Council adopted an in-house service 

model for its Maternal and Child Health 

Services, saving $771,402 over the next 

five years. 

Council made the decision that will see 

Nillumbik come into line with 91 per cent 

of Victorian councils in offering in-house 

services, following a tender process at 

the end of 2011. 


Nillumbik supports women 

to stand for council 

Nillumbik Shire Council supported 

women to stand for election to local 

council by hosting a free forum in May. 

The forum at Nillumbik was one of 10 

hosted across Victoria as part of the ‘Think 

women for local government 2012 project’. 

Run by the Victorian Local Governance 

Association and funded by the Victorian 

Government, the program aimed to 

boost the numbers of women candidates 

standing for local council election. 

The ‘Think women for local government’ 

forum offered practical advice for 

any woman interested in becoming a 

councillor at the elections in October 

this year. It was also valuable for those 

supporting women to stand. 

Lowest rate rise in 8 years 

Total rates and charges in Nillumbik were 

expected to increase by 5.9 per cent – 

the lowest in eight years – with the Draft 

Budget 2012-2013 being released for 

community comment. 

The Budget enables Council to 

substantially increase the funding 

allocation for drainage, continue bushfire 

recovery and emergency management 

projects, meet external cost pressures 

such as the carbon tax and maintain 

existing services.


Ou r people


OUR PEOPLE 

Council is 

committed to 

fostering positive 

organisational 

values, 

encouraging 

a supportive 

culture and 

ensuring we 

have a skilled 

and enthusiastic 

workforce that 

meets the 

needs of our 

organisation and 

the community. 

Learning and 

development 

A range of online and face-to-face 

learning and development programs 

were offered to staff throughout the 

year, identified by training needs 

surveys, discussions with management, 

performance management discussions 

and annual reviews. 

The success of the program was 

measured by an increased uptake of 

e-learning opportunities and excellent 

attendance and feedback from staff for 

courses attended. 

These programs offer our people the 

opportunity to build on skill sets in a 

number of critical areas including: 

• professional development 

• leadership development 

• equal opportunity 

• occupational health and safety. 

Our annual lunchtime health and 

wellbeing event, the organisational ‘team 

challenge’ continues to prove highly 

successful with 65 participants taking 

part in running, walking, table tennis, 

netball, basketball and volleyball events 

over an eight-week period. 

The use of a shared learning website 

developed in partnership with five 

surrounding councils began this year. 

This partnership has provided an 

opportunity for Nillumbik to share learning 

and development programs with our 

partner councils and enabled our people 

to access a wider range of training 

opportunities. 

Employee evaluation 

and review program 

It is the employees of Council who form 

the critical link to Council achieving 

organisational objectives and delivery 

on community expectations. A key to 

accomplishing this is through an effective 

employee review program that has strong 

links to the Council Plan and encourages 

regular performance feedback. 

During the year, senior management 

reconfirmed their commitment to 

the program and is in the process of 

developing an action and implementation 

plan to support the program. 

Recognising our people 

Council acknowledged the continuous 

service of 34 staff during the financial 

year. Staff from Community and Leisure, 

Corporate Services, Environment and 

Planning and Infrastructure Services 

achieved 10, 15, 20, 25 and 35 year 

service milestones. 

10 years 20 staff 




35 Years 2 staff 

Pictured: Vin Molony


OUR PEOPLE 

2012 LGMA Management 

Challenge 

Rotary Pride of 

Workmanship Award 

Our workforce 

Total 477 

The Local Government Management 

Challenge is a program designed to 

develop new and improved skills in 

effective team processes, issue resolution 

and situational leadership for all team 

members. It is a hands-on approach to 

leadership development that translates 

into relevant, tangible and enduring 

benefits for our employees, teams and 

the organisation. 

During 2012, the following employees 

participated in the LGMA Challenge and 

represented Council: 

• Amy Montalti, Finance – Mentor 

• Eddie Cheng, Information and 

Technology – Mentor 

• Brad Tadday, Infrastructure 

Maintenance 

• Jane Lawson, People and Place 

• Nadine Wooldridge, Community and 

Leisure Facilities 

• Naomi Ellis, Governance and 

Communications 

• Patrick Wood, Infrastructure 

Development 

• Ryan Lobo, Assets and Property. 

Since 2009, Council has worked with 

the Diamond Creek Branch of Rotary 

to promote a ‘Pride of Workmanship’ 

Award, targeted at staff below 

coordinator level to recognise those 

who perform beyond the call of duty 

and expectation. 

Through the nomination process, 

we are able to identify these staff at 

Nillumbik and reward them for their 

efforts. Six nominations were received 

for the award in 2011, and the 

deserving winner was Mark Vassallo, 

Team Leader Waste Services. We hope 

this will become an ongoing annual 

award at Nillumbik. 

Achievement personal 

and business 

development program 

For the past three years, Council 

has enabled three employees who 

have demonstrated future leadership 

potential to an annual workshop held 

in October. 

260 

240 

220 

200 

180 

160 

140 

120 

100 

80 

60 

40 

20 

0 

143 

94 

Permanent 

full-time 

Female 

21 

61 

Permanent 

part-time 

15 

57 

Casual 

Male 

20 

66 

Temporary 

(full or 

part-time) 

Sponsored and developed by 

Doncaster Rotary, the program 

aims to identify and develop skills in 

areas such as leadership models, 

leadership and change, working 

effectively in teams, managing 

organisational complexity, conflict 

resolution and HR management. 

Lonja Dean, Naomi Ellis and Louise 

Williams participated in the program 

during 2011.


OUR PEOPLE 

Health and wellbeing 

Council continued its focus on health 

and wellbeing offering a range of 

programs targeted to individuals 

and groups. 

Employees and their immediate families 

are supported through Council’s 

Employee Assistance Program, 

which offers a comprehensive 

counselling service. 

Following feedback from a number of 

staff members who sought to honour 

the memory of the 7 February 2009 

bushfires, a staff working group was 

established in September 2011, to work 

on a remembrance project. 

Employees commemorated the February 

2009 bushfires and recognised their 

ongoing recovery work at gatherings 

held at various locations. 

The second chapter of the staff ‘leaf 

book’ was launched and staff were 

invited to contribute paper leaves with 

their thoughts, memories, drawings 

and poems. 

WorkCover 

While Council has experienced 

consistent organisational growth, the 

number of WorkCover claims recorded 

for 2011-2012 decreased by 19 

per cent. 

Council is committed to the 

management of the health and safety 

of its employees and ensuring that 

the management of claims and return 

to work programs meet legislative 

requirements. 

Occupational Health 

and Safety (OHS) 

Council is committed to fulfilling its 

moral and legal responsibilities under 

the relevant State and Commonwealth 

occupational health and safety 

laws to provide a safe and healthy 

work environment for employees, 

contractors, customers, visitors and 

members of the Nillumbik community. 

SafetyMAP (initial level) is audited 

externally on a nine-monthly basis. 

This year, a two-day surveillance 

audit was conducted across 

the organisation for the ongoing 

certification of SafetyMAP. The 

findings confirmed that Council’s 

Safety Management System (OHSMS) 

demonstrates the principle of 

continual improvement. 

Council is in the process of reviewing 

the OHSMS with the objectives of 

creating a simplified, user-friendly and 

integrated system. The SafetyMAP 

audit findings commended the 

organisation for the work undertaken 

on this project to date. 

These results demonstrate continuous 

improvement by management on 

Council’s safety performance and 

commitment to retain SafetyMAP as 

an important strategic indicator of risk 

management performance. 

Council’s OHS Committee continues 

to meet regularly and comprises 

willing and active Health and Safety 

Representatives who get involved in 

any OHS issues that may arise within 

their workplace. 

Our age groups 

6.08% 

3.12% 

16.54% 

17.28% 

25.89% 

31.10% 

24 and less 

45-54 

25-34 

55-64 

35-44 

65 and over


Corporate 

Governan ce


CORPORATE GOVERNANCE 

Nillumbik Shire 

Council is one 

of 79 Victorian 

councils that 

derives its 

role, powers 

and functions 

primarily from 

the Local 

Government 

Act 1989. 

Council’s role 

Under the Act: 

1. A council is elected to provide 

leadership for the good governance 

of the municipal district and the local 

community. 

2. The role of a council includes: 

a. Acting as a representative 

government by taking into 

account the diverse needs of 

the local community in decision 

making. 

b. Providing leadership by 

establishing strategic objectives 

and monitoring their achievement. 

c. Maintaining the viability of the 

council by ensuring that resources 

are managed in a responsible and 

accountable manner. 

d. Advocating the interests of 

the local community to other 

communities and governments. 

e. Acting as a responsible partner 

in government by taking into 

account the needs of other 

communities. 

f. Fostering community cohesion 

and encouraging active 

participation in civic life. 

Nillumbik Shire Council performs this 

role by setting the strategic direction 

of the municipality, establishing and 

guiding policies, setting service 

delivery standards and monitoring the 

performance of the organisation on 

behalf of the community. 

Council Plan 

Framework 

Under the Act each council is required to 

develop a council plan within six months 

of the election and to review it annually. 

Nillumbik’s Council Plan is the key 

strategic document guiding the direction 

of the Council for its elected term. 

The Council Plan is divided into four 

goal areas. 

1. Our People and Communities 

2. Our Environment 

3. Our Economy 

4. Our Council 

Each goal area has a long-term objective 

and a series of strategies to meet that 

objective. Our progress in implementing 

these strategies is formally reported to 

Council on a quarterly basis. 

In addition to the Council Plan, 

Council has developed, adopted and 

implemented a series of policies, 

strategies and structure plans which 

have been developed through extensive 

community consultation and are an 

important guide for the Council Plan. 

The Council Plan 2009-2013 can be 

viewed on Council’s website 


The 2011-2012 Annual Report is 

reporting against the third year of the 

Council Plan 2009-2013.



Decision-making 

Council decisions are made in one 

of two ways. 

1. By resolution at Council meetings and 

Special Committees of Council. 

2. By Council officers under delegated 

authority. 

Council is empowered under a number of 

pieces of legislation to undertake a range 

of duties and functions. 

To enable Council to actually undertake 

these duties and functions it is necessary 

for Council to delegate many of its 

relevant powers to the CEO. 

This power to delegate is conferred 

upon Council by section 98(1) of the Act 

which enables Council, by instrument of 

delegation, to delegate to a member of 

Council staff any power, duty or function 

of Council under the Act or any other 

Act, other than certain specified powers. 

Council meetings 

Nillumbik Shire Council conducts 

its business in open and advertised 

meetings. 

Council and Committee meetings are 

generally held in the Council Chamber 

at the Civic Centre, Civic Drive, 

Greensborough. From April to November 

2011, meetings were held off-site at 

locations around the Shire, due to 

building renovations at the Civic Centre. 

Policy and Services 

Committee meetings 

Council’s Policy and Services Committee 

is a fully delegated Special Committee 

and meets to consider and determine a 

wide range of issues. 

It meets on the second Tuesday evening 

of the month. Members of the public are 

invited to speak to an item on a Policy and 

Services Committee meeting agenda. 

In 2011-2012 there were 95 verbal 

presentations to the Committee. 

Planning Committee meetings 

The Planning Committee is a fully delegated 

Special Committee, which meets to 

determine planning related matters. It meets 

on the second Tuesday evening of each 

month. Members of the public are invited 

to speak to an item on the Planning 

Committee agenda. 

In 2011-2012 there were 92 verbal 

presentations to the Committee. 

Ordinary Council meetings 

Ordinary Council meetings are held 

on the fourth Tuesday evening of each 

month. Members of the public are invited 

to ask questions at an Ordinary Council 

meeting by submitting them in writing up 

until 10 minutes before the advertised 

start time of the meeting. 

In 2011-2012, there were 186 public 

questions asked at Council meetings. 

Special Council meetings 

Special Council meetings are convened 

for a specific purpose and only matters 

listed on the agenda for the meeting may 

be dealt with. 

There were two Special Council meetings 

held between 2011-2012. 

Agendas and minutes 

The business to be considered by 

Council and its Committees is set out 

in the agenda which is available on 

Council’s website, at the Eltham and 

Diamond Valley branch libraries and at 

the Civic Centre in Greensborough on 

the Friday prior to the meeting. Agenda 

papers are also available at each meeting 

for interested members of the public. 

Council records the resolutions carried at 

each Council and Committee meeting. 

Minutes are available on Council’s website 

on the Friday after each meeting and 

are confirmed at the following Ordinary 

Council Meeting or Committee meeting. 

Minutes are available on the website for 

the current year and for the preceding 

12 months, as required by the Act. 

Code of conduct 

In accordance with the Act, Council’s role 

is to provide governance and leadership 

for the Nillumbik community through 

advocacy, decision-making and action. 

Adherence to good governance principles 

assists Council in achieving this role. 

Nillumbik’s Governance Code has 

been developed to meet Council’s 

goal of good governance for the local 

community. It meets Council’s statutory 

requirements for a Code of Conduct 

under s76C of the Act and also provides 

a framework for Councillors and officers 

to work in the best interests of the 

Nillumbik community. 

It therefore contains the issues which 

must be addressed under the Act but 

also incorporates further principles of 

good governance which this Council has 

chosen to include in order to provide a 

framework to support good governance. 

The Governance Code was updated 

in March 2012 to incorporate the 

advice from Local Government Victoria 

in relation to pre-election caretaker 

arrangements.



Conflict of interest 

The Act requires Councillors, Council 

officers and members of Council special 

committees to disclose conflicts of interest 

and to avoid participating in decisionmaking 

where such conflicts exist. 

On 30 June 2011, after consultation with 

the sector, Local Government Victoria 

released a new Conflict of Interest Guide 

for Councillors. This was circulated to all 

Councillors in July 2011. 

Councillor allowances 

and expenses 

In accordance with section 74 of the 

Act, the Mayor and Councillors are paid 

an annual allowance, which includes a 

nine per cent superannuation guarantee 

contribution. 

A vehicle was used by the Mayor of the 

day for official Council business purposes 

and reasonable private use during their 

term of office. 

Councillor allowances 


A telephone (landline), mobile phone and 

car kit, facsimile, laptop computer, tablet 

and associated stationery were provided 

to each Councillor, including the Mayor, 

for official Council business. 

Councillor allowances 2011-2012 

Cr Belinda Clarkson 23,671.00 

Cr Chris Chapple 23,671.00 

Cr Lewis Brock 23,671.00 

Cr Ken King 23,671.00 

* Cr Helen Coleman 38,396.00 

Cr Peter Perkins 23,671.00 

** Cr Michael Young 58,515.50 

* Cr Helen Coleman was Mayor from 1 July 2011-13 December 2011 

** Cr Michael Young was Mayor from 13 December 2011-30 June 2012 

The Mayoral allowance is set at $71,920 including superannuation. 

The discrepancies in the above table are due to the dates at which 

payments were made. 

Councillor meeting attendance 

July 2011–June 2012 

Ordinary Special Planning Policy and 

(12) (2) (8) Services (11) 

Cr Belinda Clarkson 11 2 7 10 

Cr Lewis Brock 12 2 7 10 

Cr Michael Young 12 2 8 10 

Cr Peter Perkins 10 2 7 9 

Cr Ken King 10 2 8 11 

Cr Chris Chapple 12 2 8 9 

Cr Helen Coleman 12 2 8 11 

Council reimburses reasonable costs 

associated with the formal duty of 

representing Council for the Mayor and 

Councillors and their respective partners 

in accordance with Council’s Councillor 

Expense Entitlement Procedure 2008 

and section 75 of the Act.



Audit Committee 

The Audit Committee’s primary function 

is to assist Council in the effective 

conduct of its responsibilities for 

financial reporting, management of risk, 

maintaining a reliable system of internal 

controls and facilitating good and ethical 

governance. 

The current Committee consists of 

three independent members and two 

Councillors. 

• Linda MacRae (Chair) 

• Roger Male 

• Sue Pelka 

• Cr Ken King 

• Cr Chris Chapple 

Over the past five years, the Audit 

Committee has played an important 

role in monitoring and promoting high 

standards of corporate governance of 

the Council. 

The Committee met on four occasions 

during 2011-2012 and considered 

five internal audit reports before 

recommending them to Council. 

• Events and festivals 

• Governance 

• Road Management Plan 

• Councillor expenses 

• GST compliance 

The Committee discussed and 

endorsed the Annual Internal Audit Plan 

for 2012-2013. 

The Committee also reviewed a range 

of reports prepared by management 

dealing with issues such as performance 

reporting, conflict of interest, long service 

leave regulations, risk management, 

financial statement presentation and 

reporting issues. 

The Committee conducted discussions 

with external auditors following the audit 

of the financial statements. 

On the basis of the Internal Audit reports 

and management reports, the Committee 

made recommendations to address 

control deficiencies and reviewed follow 

up reports on outstanding management 

actions. 

The Committee also sought assurance 

from management that Council 

has measures in place to maintain 

compliance. 

Committees and 

Advisory groups 

Special committees of Council 

Special committees and groups have 

been established by Council to provide 

input and advice on various issues on an 

ongoing basis. 

Council membership during 2011-2012 

was as follows. 

Planning Committee 

July – December 2011 

Cr Michael Young (Chairperson) 

Cr Lewis Brock 

Cr Chris Chapple 

Cr Belinda Clarkson 

Cr Helen Coleman 

Cr Ken King 

Cr Peter Perkins 

January – June 2012 

Cr Helen Coleman (Chairperson) 




Cr Ken King 



Policy and Services Committee 

July – December 2011 

Cr Lewis Brock (Chairperson) 




Cr Ken King 




Cr Lewis Brock (Chairperson) 




Cr Ken King 


Cr Michael Young



Advisory Committees of Council 

Advisory Committees of Council PERIOD COUNCILLOR 

Art Acquisition Advisory Committee July 2011 – June 2012 Cr Helen Coleman 

(Chair) 

Chief Executive Officer Performance Review July 2011 – June 2012 Cr Ken King 




mayor 

Civic Drive Precinct Advisory Committee July – November 2011 Cr Ken King 


Community Inclusion Advisory Committee July 2011– June 2012 Cr Belinda Clarkson 

Culture and Arts Advisory Committee July 2011 – June 2012 Cr Helen Coleman 

(Chair) 

Cr Ken King (Alternate) 

Economic Development Advisory Committee July 2011 – Nov 2011 Cr Ken King 

replaced by Nillumbik Development Advisory Committee Nov 2011 – June 2012 Cr Chris Chapple 


Edendale Advisory Committee July 2011 – June 2012 Cr Michael Young 


Eltham Major Activity Centre Development Forum 25 October 2011 – June 2012 Cr Helen Coleman 

(Chair) 



Environment Advisory Committee July 2011 – June 2012 Cr Michael Young 

(Chairperson) 

Hurstbridge Family Centre Project Advisory Committee July 2011 – June 2012 Cr Lewis Brock 

Kangaroo Ground War Memorial Park and July 2011 – June 2012 Cr Ken King 

Tower of Remembrance Advisory Committee 

Living & Learning Nillumbik Advisory Committee July 2011 – June 2012 Cr Lewis Brock 

Municipal Emergency Management Planning July 2011 – June 2012 Cr Peter Perkins 

Advisory Committee 

(Chair) 

Panton Hill Bushland Reserves System 22 November 2011 – June 2012 Cr Lewis Brock 

Management Plan User Group 

(Chair) 

Recreation Trails Advisory Committee July – December 2011 Cr Lewis Brock 

(Chair) 

Cr Ken King (alternate) 


Cr Ken King (Chair) 

Cr Lewis Brock (alternate) 

Service Reviews Advisory Committee July 2011 – June 2012 Cr Ken King 



St Andrews Hall and Reserve Advisory Committee July 2011 – June 2012 Cr Ken King



External organisations 

External organisations PERIOD COUNCILLOR 

Diamond Creek Business Development Association July 2011 – June 2012 Cr Peter Perkins 

Eltham Chamber of Commerce and Industry July 2011 – June 2012 Cr Michael Young 

Hurstbridge Traders Association July 2011 – June 2012 Cr Lewis Brock 

Interface Councils July – December 2011 Mayor, Cr Helen Coleman 


Mayor, Cr Michael Young 

Municipal Association of Victoria (MAV) July 2011 – June 2012 Cr Helen Coleman 


(alternate) 

Metro Transport Forum July – December 2011 Cr Ken King 



Metropolitan Waste Management Group July 2011 – June 2012 Cr Peter Perkins 

MAV Housing Forum July 2011 – June 2012 Cr Chris Chapple 

Municipal Fire Prevention Committee July 2011 – June 2012 Cr Lewis Brock 

Nillumbik Tourism Association July 2011 – June 2012 Cr Michael Young 


Yarra Plenty Regional Library Board July 2011 – June 2012 Cr Lewis Brock 


Victorian Local Governance Association July 2011 – June 2012 Cr Helen Coleman



Council policies, strategies and advisory committees adopted in 2011-2012 

Policy 

Adopted 

Ecologically Sustainable Development (Building Design and Works) Policy 2011 26 July 2011 

Investment Policy 20 December 2011 

Strategy 

Adopted 

Cultural Plan 2011-2017 Growing our Arts and Culture 11 October 2011 

Nillumbik Trails Strategy 20 December 2011 

Environmental Education Strategy 26 June 2012 

Biodiversity Strategy 26 June 2012 

Advisory Committees 

Adopted 

Cr appointed 

Eltham Major Activity Centre Development Forum Terms of Reference 23 August 2011 Cr Helen Coleman 

Members appointed 25 October 2011 (Chair) 

Panton Hill Bushland Reserves System Management Terms of Reference 25 October 2011 Cr Lewis Brock (Chair) 

Plan User Group members appointed 22 November 2011 

Nillumbik Economic Development Advisory Committee Terms of Reference 8 November 2011 Cr Chris Chapple (Chair) 

members appointed 29 May 2012 Cr Ken King 


Agricultural Advisory Committee Terms of Reference and members Cr Ken King (Chair) 

appointed 6 December 2011 


Picture Nillumbik Advisory Group 20 December 2011 Cr Ken King (Chair) 


Green Wedge Management Plan Implementation Terms of Reference 26 June 2012 

Advisory Committee



Council memberships 

During the year, Council was a 

member of the following organisations 

and paid the following amounts in 

membership fees. 

• Metropolitan Transport Forum 

$1,500 

• Victorian Local Governance 

Association 

$14,700 

• Municipal Association of Victoria 

$33,071 (excl. GST) 

• Local Government Managers 

Australia 

$1,054.55 (excl. GST) 

Best Value 

Council continues to apply Best Value 

principles to its services in accordance 

with the Local Government Act 1989. 

The program of Service Reviews adopted 

by Council in August 2009 continued 

during 2011-2012 to address both cost 

effectiveness and service quality. 

The following services were reviewed 

during the year. 

• Open Space Maintenance 

• Building Services 

• Roads Maintenance 

Municipal Emergency 

Management Plan 

The Emergency Management Act 1986 

requires Council to establish a Municipal 

Emergency Planning Committee. 

The Committee, comprising 

representatives from the local community, 

emergency services, government 

departments or agencies, service providers 

and Council officers, is required to develop 

an Emergency Management Plan for the 

community with support from Council. 

Council’s role in planning for an 

emergency is to detail the arrangements 

for preparedness, response and recovery 

from emergencies within the Shire. 

Over the past 12 months, a number of 

activities have been carried out in the 

area of Nillumbik’s municipal emergency 

management planning, including the 

following. 

• A multi-agency Municipal Fire 

Management Plan was developed 

to replace the Municipal Fire 

Prevention Plan. 

• Council, Melbourne Water, VICSES 

worked to produce a Flood 

Emergency Plan for Nillumbik. 

• Training and exercising of plans took 

place in collaboration with emergency 

services and other councils. 

• Equipment and software was 

purchased to improve the functioning 

of the Municipal Emergency 

Coordination Centre. 

• Community groups were supported 

to undertake local emergency 

planning. 

• Recommendations of the Victoria 

Bushfire Royal Commission have 

been incorporated into Emergency 

Management arrangements. 

• Emergency Management 

arrangements were improved to align 

with the National Strategy for Disaster 

Resilience. 

Risk Management 

Council recognises and is committed 

to its overall responsibility to effectively 

manage risks. Council ensures that 

best practice risk management and 

occupational health and safety standards 

are maintained. 

The aim of the Risk Management 

Strategy is provide guidance to Council’s 

approach to risk management and the 

methodology used to achieve the risk 

policy objectives and outcomes. 

Compliance, Monitoring 

and Assessment 

Council manages risk in accordance with 

the process described in Australian/New 

Zealand Standard (AS/NZS) 31000:2009 

Risk Management. 

An OHS Management System has been 

implemented across the organisation 

and Council has attained and maintained 

SafetyMAP accreditation for the 

management for the management of 

risks to its employees, contractors and 

volunteers. 

Overall, Council’s risk profile continues 

to remain stable as measured by the 

SafetyMAP, professional Indemnity, and 

public liability and fidelity audits. 

Risk Register 

The risk management framework is 

regulated by the Risk Management 

Strategy and the Risk Register manages 

strategic risks and operational risks. 

Operational risks are continually under 

review as part of ongoing improvement 

to the Register.



Business continuity 

Council draws on elements of the 

internationally accepted British Business 

Continuity Standard (BS 25999) to deliver 

key services during an event which has 

the capacity to create an interruption to 

business delivery. 

The underlying principles are that sound 

information should underpin decisionmaking 

and that good decision-making 

is fundamental to effective crisis 

management (and action plans). 

Council’s approach and actions in 

managing the recovery of the large 

portable fire in June 2011 using our 

business continuity framework was 

selected as a finalist for the LGPRO 

Excellence Awards 2012 (Innovative 

Management Initiative). 

Insurance audits 

During the financial year, Council’s 

insurance underwriters undertook audits 

on Council’s workplaces to measure risk 

performance covering public liability and 

professional liability and fidelity. 

Council’s performance for the public and 

professional liability remained strong with 

a score of 90 per cent and the fidelity 

audit 91 per cent. 

Local laws 

Council has the following Local Laws 

in place. 

Local Law No. 5 – Amenity 

Local Law 

The purpose of this Local Law is to 

provide for the: 

a) safe and fair use and enjoyment of 

public places 

b) safe and fair use of roads 

c) regulation of street activities 

d) keeping and control of animals 

e) fair and reasonable use and 

enjoyment of private land 

f) uniform and fair administration of this 

Local Law. 

Local Law No. 6 – Meeting 

Procedure Local Law 

The purpose of this Local Law is to: 

(a) regulate proceedings at Council 

Meetings, Special Committee 

Meetings and other meetings 

conducted by or on behalf of Council 

where Council has resolved that the 

provisions of this Local Law are 

to apply 

(b) regulate proceedings for the election 

of the Mayor, Deputy Mayor and 

chairpersons of various committees 

(c) facilitate community engagement by 

providing mechanisms as appropriate 

within the meeting arrangements for 

community members to express 

their views 

(d) regulate the use of the common 

seal, and prohibit unauthorised use 

of the common seal or any device 

resembling the common seal. 

Local Law No. 7 – Asset 

Protection Local Law 

The purpose of this Local Law is to: 

(a) provide for the peace, order 

and good government of the 

municipal district 

(b) protect public assets vested in 

Council from damage, accelerated 

deterioration or abuse during the 

building or other works process 

(c) provide a physical environment which 

aims to minimise hazards to health 

and safety of persons attending 

building sites and those adjacent, 

opposite or passing building sites 

(d) prohibit, regulate and control the 

presence and disposal of refuse, 

rubbish and soil on and from building 

sites within the municipal district to 

reduce hazards to the environment 

and promote an environment where 

residents can enjoy a quality of life 

that meets the general expectation of 

the community 

(e) define the standards to which 

persons engaged in building or other 

works should adhere 

(f) educate and induce persons involved 

in building or other works to act 

responsibly to reduce the extent and 

cost of infrastructure damage for the 

benefit of the wider community.



Legislative compliance 

Victorian Charter of Human 

Rights and Responsibilities 

The Charter of Human Rights and 

Responsibilities Act 2006 came into 

operation on 1 January 2007. The 

public sector, including local government, 

was bound by the Charter from 

1 January 2008. 

Councils need to make laws and deliver 

services, taking into consideration the 20 

rights which assist all people to live with 

freedom, respect, equality and dignity. 

All employees of the public sector have 

legal responsibilities involving decisionmaking 

process and professional 

behaviour. 

For Council this is not just about 

compliance, but a commitment to human 

rights culture within Council. 

Council is committed to the Charter and 

has set the following objectives. 

• Act in a fair, transparent and 

equitable manner. 

• Encourage compliance with the Charter. 

• Support others to act compatibly with 

the Charter. 

• Respect and promote human rights. 

• Utilise the human rights principles 

to improve customer service to the 

community. 

Council officers use the human rights 

principles set out in the charter in 

program and service delivery. 

Council has undertaken a number of 

initiatives to ensure compliancy with the 

Charter including staff training; contract 

documents include a compatibility 

statement; Council contractors, advisory 

committee members and community 

groups have been informed and advised 

of their responsibilities under the Charter; 

and information has been provided to 

the public. 

Council has also adopted and 

implemented Human Rights and 

Responsibilities Guidelines, which explain 

the human rights principles and how they 

apply to Councillors, Council officers and 

contractors. 

A copy of these Guidelines can be 

obtained at the Civic Centre and 

also via Council’s website 


If someone feels that their human rights 

have been breached or limited by 

Council, they may make a complaint by 

telephone (03) 9433 3312 or preferably in 

writing to: 

Human Rights Officer 

Nillumbik Shire Council 

PO Box 476 

Greensborough VIC 3088 

The complaint will be investigated as 

soon as possible, but no later than 

within five business days and they will be 

provided with a written response. 

Alternatively, complaints can be made to 

the Equal Opportunity and Human Rights 

Commission. 

Council did not receive any human rights 

complaints in the year 2011-2012. 

Freedom of Information 

Act 1982 

Under the Freedom of Information Act 

1982, the community has the right 

to access certain information held by 

Council. 

Requests to access such information under 

the Act should be lodged in writing to: 

Freedom of Information Officer 

Nillumbik Shire Council 

PO Box 476 

Greensborough VIC 3088 

The following fees and charges are 

applicable to applications. 

Application fee $25.10 

Search and access fees 

Photocopying 

$20 per hour 

$0.20 per A4 page 

Fees and charges may be waived in 

certain circumstances. 

Details of requests for the 2011-2012 

year are as follows. 

Total number of requests 11 

Access granted in full 4 

No documents 1 

Access denied in full 1 

Requests withdrawn or 

not proceeded 1 

Requests in progress at 

30 June 2012 4 

Total fees collected for 

2011-2012 $367 

Responsible Officer: Andrew Port, 

General Manager Corporate Services 

Principal Officer: Stuart Burdack, Chief 

Executive Officer



Information available to the 

general public 

Information Privacy Act 2000 

and Health Records Act 2001 

Victorian Equal Opportunity 

Act 2010 

The Local Government (General) 

Regulations 2004 (Reg 11) requires 

councils to make available certain 

information for public inspection. 

Members of the public may arrange to 

inspect the information during normal 

office hours. 

A summary of the information 

is as follows. 

• Allowances fixed for Councillors 

• Details of senior officers salary packages 

• Details of overseas or interstate travel 

undertaken in an official capacity by 

Councillors and officers 

• Names of Councillors and officers 

who were required to submit a return 

of interests during the financial year 

and the dates they were submitted 

• Agendas and minutes for ordinary 

and special meetings 

• A list of special committees 

established (and abolished) by Council 

• Minutes of special committee meetings 

• A record of submissions received 

under s223 of the Act 

• A register of Officers authorised under 

s224 of the Act 

• A list of donations and grants made 

by Council during the financial year 

• A register of delegations to Special 

Committees, the CEO and Officers 

• A record of property, finance and 

operating leases 

Council believes the responsible handling 

of personal information is a key aspect of 

democratic governance and is strongly 

committed to protecting an individual’s 

right to privacy. Accordingly, Council is 

committed to full compliance with its 

obligations under the Information 

Privacy Act 2000 and the Health Records 

Act 2001. 

Council has implemented policies 

and procedures to ensure responsible 

collection, handling and disposal of all 

personal and health information. Copies 

of Council’s Privacy Policy are available 

from the Civic Centre and Council’s 

website www.nillumbik.vic.gov.au. 

Access to personal information held by 

Council may be made by applying in 

writing with proof of identity to Council’s 

Privacy Officer. Any person who feels 

aggrieved by Council’s handling of 

their personal information may make a 

complaint to Council’s Privacy Officer 

on 9433 3269. The complaint will be 

investigated within five business days 

and a written response provided. 

Alternatively, complaints may be 

made to the Privacy Commissioner or 

Health Commissioner (although the 

Commissioner may decline to hear 

the complaint if it is not first made 

to Council). 

Nillumbik is an equal opportunity 

employer and is committed to the 

principles of the Victorian Equal 

Opportunity Act 2010 and Federal 

legislation by providing a workplace free 

from bullying, discrimination and violence. 

Council’s policy aims to ensure that no 

employees are discriminated against in 

the workplace and all are treated fairly. It 

also seeks to foster a work environment 

that provides respect for employees in all 

working relationships. 

The Equal Opportunity Committee met 

quarterly throughout the year to discuss 

issues such as staff training, employment 

statistics and any changes to Equal 

Opportunity legislation that may 

impact Council. 

Our commitment to Equal Opportunity 

will also be achieved by continuing to 

implement Council’s Equal Opportunity 

program, which educates and informs 

all employees of their rights and 

responsibilities. 

Training programs for Council 

managers and coordinators on equal 

opportunity were rolled out throughout 

the organisation last year in addition to 

Contact Officers being trained to support 

Council’s Equal Opportunity program. 

All office-based new employees are 

assigned online Equal Opportunity 

training to complete as part of their 

Induction program.



Whistleblower Protection 

Act 2001 

Nillumbik is committed to the 

implementation of the Whistleblower 

Protection Act 2001. 

The Manager Organisational 

Development and Risk is the appointed 

Protected Disclosures Coordinator 

and processes have been put in place 

to facilitate the making of disclosures 

under the Act, utilising the Whistleblower 

Protection Act 2001 Ombudsman’s 

Guidelines. 

There have been no disclosures relating 

to Councillors or Officers of the Council 

that fall under the requirements of this 

Act during the 2011-2012 year. 

Geographic name 

change proposals 

McLaughlans Lane, Plenty 

During 2011-2012, Council considered 

a number of requests to change the 

name of McLaughlans Lane, Plenty to 

McLaughlins Lane to reflect the correct 

spelling of the family name of some of the 

early residents of the area. 

There was extensive public consultation, 

including a survey of the property owners 

and residents of McLaughlans Lane, 

which resulted in a majority ‘No’ vote. 

Council, at its 6 September 2011 Policy 

and Services Committee Meeting, 

resolved to change the name of the 

road to McLaughlins Lane and sought 

approval for the road name change from 

the Registrar of Geographic Names. 

The Registrar subsequently advised 

Council, on 14 October 2011, that the 

proposed road name change was not 

supported. 

Peter Avola Memorial Pavilion, 

Strathewen 

During 2011-2012, Council considered a 

request from the Strathewen Cricket Club 

and the Strathewen Recreation Reserve 

Association that the newly built pavilion 

at the Strathewen Recreation Reserve be 

named the Peter Avola Memorial Pavilion. 

Following a period of public consultation 

which demonstrated unanimous support 

for the proposal, Council, at its 27 March 

2012 Ordinary Council Meeting, resolved 

that the Pavilion be named the Peter 

Avola Memorial Pavilion and that the 

proposed name be submitted to 

the Registrar of Geographic Names 

for approval. 

The Registrar’s approval was 

subsequently received by Council and 

the name of the new Pavilion was 

gazetted on 17 May 2012. 

Pictured: Cameron Griffiths



Contents 

Annual 

Financial 

Report 

For Year Ended 

30 June 2012 

Standard Statements 

Standard Income Statement Page 84 

Standard Balance Sheet Page 85 

Standard Cash Flow Statement Page 86 

Standard Statement of Capital Works Page 87 

Notes accompanying the Standard Statements Page 88 

Certification of the Standard Statements Page 92 

General Purpose Financial Statements 

Comprehensive Income Statement Page 93 

Balance Sheet Page 94 

Statement of Changes in Equity Page 95 

Cash Flow Statement Page 96 

Notes to Financial Statements 

Note 1 Significant accounting policies Page 97 

Note 2 Rates and charges Page 101 

Note 3 Statutory fees and fines Page 101 

Note 4 User fees Page 101 

Note 5 Grants Page 102 

Note 6 Contributions Page 103 

Note 7 Reimbursements Page 103 

Note 8 Other income Page 103 

Note 9 Employee benefits Page 104 

Note 10 Materials & services Page 104 

Note 11 Bad and doubtful debts Page 104 

Note 12 Depreciation and amortisation Page 105 

Note 13 Finance costs Page 105 

Note 14 Other expenses Page 105 

Note 15 Investment in associate accounted for 

using the equity method Page 106 

Note 16 Yarra Plenty Regional Library Service Page 106 

Note 17 Cash and cash equivalents Page 106 

Note 18 Trade and other receivables Page 107 

Note 19 Inventories Page 107


Note 20 Other Assets Page 107 

Note 21 Property, plant and equipment Page 107 

Note 22 Trade and other payables Page 114 

Note 23 Trust funds and deposits Page 114 

Note 24 Provisions Page 114 

Note 25 Interest-bearing liabilities and borrowings Page 116 

Note 26 Reserves Page 117 

Note 27 Reconciliation of cash flows from operating 

activities to surplus or deficit Page 120 

Note 28 Reconciliation of cash and cash equivalents Page 120 

Note 29 Non cash financing and investing activities Page 120 

Note 30 Restricted assets Page 120 

Note 31 Superannuation Page 121 

Note 32 Commitments Page 122 

Note 33 Operating leases Page 122 

Note 34 Contingent liabilities and contingent assets Page 123 

Note 35 Financial instruments Page 124 

Note 36 Auditors remuneration Page 128 

Note 37 Events occurring after balance date Page 128 

Note 38 Related party transactions Page 129 

Note 39 Joint venture information Page 129 

Note 40 Revenue, expenses, and assets by 

function/activities Page 130 

Note 41 Financial ratios (Performance indicators) Page 131 

Note 42 Capital expenditure Page 133 

Note 43 Pending Accounting Standards Page 134 

Certification of Financial Report Page 136 

Auditor-General’s Report on the Financial Report 

and Standard Statements Page 137 

Performance Statement 

Performance Statement Page 139 

Council approval of the Performance Statement Page 141 

Auditor-General’s Report on the Performance Statement Page 142


Standard Income Statement 

For the year ending 30 June 2012 

Budget 

Variances 

Actuals 

2011/2012 Favourable (Unfavourable) 

2011/2012 

$'000 $'000 % Ref $'000 

Revenue 

Rates and charges 45,245 (21) (0.0) 45,224 

Statutory fees and fines 812 137 16.9 2 949 

User fees 11,079 185 1.7 11,264 

Grants – operating 7,329 3,369 46.0 2 10,698 

Other revenue 3,576 (200) (5.6) 2 3,376 

Total revenue 68,041 3,470 71,511 

Expenses 

Employee benefits 23,594 6,145 26.0 2 29,739 

Materials and services 27,482 3,494 12.7 2 30,976 

Bad and doubtful debts 8 51 637.5 2 59 

Depreciation and amortisation 8,048 (119) (1.5) 7,929 

Finance costs 955 39 4.1 994 

Other expenses 7,875 351 4.5 2 8,226 

Total expenses 67,962 9,961 77,923 

Net gain (loss) on disposal of property, plant, equip, infrastructure – (2,078) – 2 (2,078) 

Share of net profits (losses) of associates – 148 – 2 148 

Underlying Surplus (deficit) for the year 79 (8,421) (8,342) 

Grants – capital 743 2,268 305 2 3,011 

Contributions 165 3,530 2,139.4 2 3,695 

Comprehensive Surplus (deficit) for the year 987 (2,623) (1,636)


Standard Balance Sheet 


Budget 

Variances 

Actuals 



$'000 $'000 % Ref $'000 

Current assets 

Cash and cash equivalents 16,282 7,430 45.6 23,712 

Trade and other receivables 5,188 (595) (11.5) 3 4,593 

Prepayments and accruals 2,392 143 6.0 3 2,535 

Land identified for sale 745 – – 745 

Inventories 35 (9) (25.7) 3 26 

Total current assets 24,642 6,969 31,611 

Non-current assets 

Trade and other receivables 2,758 (605) (28.1) 3 2,153 

Property, infrastructure, plant and equipment 541,499 93,339 17.2 634,838 

Other financial assets 874 186 21.3 3 1,060 

Total non-current assets 545,131 92,920 638,051 

Total assets 569,773 99,889 669,662 

Current liabilities 

Trade and other payables 3,385 (6,126) (181.0) 3 9,511 

Interest bearing liabilities 1,220 (1,490) (122.1) 3 2,710 

Provisions 6,192 (543) (8.8) 3 6,735 

Trust funds and deposits 1,042 (43) (4.1) 3 1,085 

Total current liabilities 11,839 (8,202) 20,041 

Non-current liabilities 

Interest bearing liabilities 18,292 4,901 26.8 3 13,391 

Provisions 8,572 94 1.1 3 8,478 

Total non-current liabilities 26,864 4,995 21,869 

Total liabilities 38,703 (3,207) 41,910 

Net assets 531,070 96,682 627,752 

Equity 

Other reserves 11,525 6,717 58.3 3 18,242 

Asset revaluation reserve 232,970 36,062 15.5 3 269,032 

Accumulated surplus 286,575 53,903 18.8 340,478 

Total equity 531,070 96,682 627,752


Standard Cash Flow Statement 


Budget 

Variances 

Actuals 



$'000 $'000 % Ref $'000 

Cash flows from operating activities 

Receipts from customers 61,140 9,321 15.2 70,461 

Payments to suppliers (60,051) (9,471) 15.8 4 (69,522 

) 

Net cash inflow (outflow) from customers/suppliers 1,088 (150) 939 

Interest received 831 370 44.5 4 1,201 

Government receipts 6,375 8,257 129.5 4 14,632 

Net cash inflow (outflow) from operating activities 8,294 8,477 16,772 

Cash flows from investing activities 

Proceeds from sale of property, plant and equipment, infrastructure 3,953 (2,086) 52.8 4 1,867 

Payments for property, plant and equipment, infrastructure (12,402) (5,090) 41.0 4 (17,492) 

Net cash inflow (outflow) from investing activities (8,449) (7,176) (15,625) 

Cash flows from financing activities 

Proceeds from interest bearing loans and borrowings 7,448 (3,365) (45.2) 4 4,083 

Repayment of interest bearing loans and borrowings (1,254) 58 (4.6) 4 (1,196) 

Finance Costs – 994 – (994) 

Net cash inflow (outflow) from financing activities 6,194 (2,313) 1,893 

Net increase (decrease) in cash and cash equivalents 6,039 (2,999) (49.7) 3,040 

Cash and cash equivalents at the beginning of the year 10,242 10,430 101.8 20,672 

Cash and cash equivalents at the end of the year 16,282 7,431 23,712 

Reconciliation of Surplus (Deficit) and Net Cash Flows from Operating Activities 


Surplus / (deficit) 987 (2,623) (265.8) (1,636) 

– 

Depreciation and amortisation 8,048 (119) (1.5) 7,929 

Non cash contributions from Developers – – 

(Profit) loss on sale of property, plant and equipment, infrastructure 2,078 – 2,078 

Gifted infrastructure/artwork (1,072) 

Adjustment to equity interest Yarra Plenty Regional Library (148) 

Net movement in current assets and liabilities (740) 9,367 (1,265.8) 8,627 

Finance Costs 994 

Net cash inflow (outflow) from operating activities 8,294 8,703 16,772


Standard Statements of Capital Works 


Budget 

Variances 

Actuals 



Capital Works Areas $'000 $'000 % Ref $'000 

Bridges 150 26 17.3 5 176 

Childrens playground equipment 155 (155) (100.0) 5 – 

Commercial centres/major streetscapes 381 (381) (100.0) 5 – 

Council office and equipment 400 623 155.8 5 1,023 

Miscellaneous 25 89 356.0 5 114 

Disability access works 80 (80) (100.0) 5 – 

Drainage 430 (234) (54.4) 5 196 

Footpaths 550 (380) (69.1) 5 170 

Landfill/operations centre 509 (509) (100.0) 5 – 

Major leisure centres and community halls 1,131 5,825 515.0 5 6,956 

Other council buildings 3,404 (3,404) (100.0) 5 – 

Plant and vehicle replacement 2,051 (1,072) (52.3) 5 979 

Public open space 510 1,474 289.0 5 1,984 

Recreation trails 485 (485) (100.0) 5 – 

Roads 1,380 (80) (5.8) 5 1,300 

Special Charge Schemes (Council Contributions) 183 (183) (100.0) 5 

Sportsfields and pavillions 315 (315) (100.0) 5 – 

Traffic works 264 (264) (100.0) 5 – 

Work in Progress – 4,653 100.0 5 4,653 

Total Capital Works 12,403 5,148 17,551 

Represented by: 

Asset renewal 5,790 17 0.3 5,807 

Asset upgrade 2,216 7,413 334.5 9,629 

New 4,396 (2,280) (51.9) 2,116 

Total capital works 12,402 5,149 17,551 

Budget 

Variances 

Actuals 

Property, plant and equipment, infrastructure 2011/2012 Favourable (Unfavourable) 


movement reconciliation worksheet $'000 $'000 % $'000 

The movement between the previous year and the current 

year in property, plant and equipment, infrastructure as 

shown in the Balance Sheet links to the net of the 

following items: 12,402 5,149 17,551 

Asset revaluation movement – 37,498 – 37,498 

Depreciation and amortisation (8,048) 119 1.5 (7,929) 

Written down value of assets sold (3,953) 7 0.2 (3,946) 

Gifted – 1,072 100.0 1,072 

Net movement in property, plant and equipment, infrastructure 401 43,845 44,246


Notes accompanying the Standard Statements 


1. Basis of preparation of Standard Statements 

Nillumbik Shire Council is required to prepare and include audited Standard Statements within its Annual Report. Four 

Statements are required – a Standard Income Statement, a Standard Balance Sheet, a Standard Statement of Cash Flows, 

and a Standard Statement of Capital Works together with explanatory notes. 

These statements and supporting notes form a special purpose financial report prepared to meet the requirements of the 

Local Government Act 1989 and the Local Government (Finance and Reporting) Regulations 2004. 

The Standard Statements have been prepared on accounting bases consistent with those used for the General Purpose 

Financial Report and the Budget for the 2011-12 financial year. The results reported in these Statements are consistent with 

those reported in the General Purpose Financial Report. 

The Standard Statements are not a substitute for the General Purpose Financial Report, which is included on pages 9 to 51 

of the Annual Financial Report which forms part of Council’s Annual Report. They have not been prepared in accordance 

with all Australian Accounting Standards or other authoritative professional pronouncements. 

The Standard Statements compare Nillumbik Shire Council’s financial plan, expressed through its annual budget, with actual 

performance. The Local Government Act 1989 requires explanation of any material variances. The Council has adopted 

a materiality threshold of 10 per cent. Explanations have not been provided for variations below the materiality threshold 

unless the variance is considered to be material because of its nature. 

The budget figures included in the Standard Statements are those adopted by the Council on 28 June 2011. The budget 

was based on assumptions that were relevant at the time of adoption of the budget. The Council set guidelines and 

parameters for revenue and expense targets in this budget in order to meet the Council’s business plan and financial 

performance targets for both the short and long term. The budget did not reflect any changes to equity resulting from asset 

revaluations, as their impacts were not considered predictable. 

Detailed information on the actual financial results are contained in the General Purpose Financial Report on pages 9 to 51. 

The detailed budget can be obtained by contacting Council or through the Council’s web site. The Standard Statements 

must be read with reference to these documents. 

Explanation of material variances 

2 Standard Income Statement 

Statutory Fees and Fine – Variance is mainly due to actual income for Planning Applications ($40K) and Parking 

Infringement ($50K) being greater than budgeted. Planning Applications submitted have been more complex than in previous 

years thus attracting additional charges and additional parking infringements issued relate to the employment of an additional 

parking officer and the installation of parking sensors during the year. 

User Fees – Variance is due actual income for Leisure Centre fees being greater than budgeted due to additional members 

at Eltham Leisure Centre and higher than expected Golf Course rental income. 

Grants operating – Variance is due to the early receipt of Victoria Grants Commission Financial Assistance Grants ($778K) 

and grants received but not budgeted for, in particular for bushfire and flood grants. 

Grants capital – Variance is due to the receipt of grants during 2011/12 that were budgeted in prior years including 

Community Bank Stadium – Diamond Creek ($1.7M), Eltham Lower Park Masterplan ($359K) and St Andrews Community 

Centre ($542K). 

Other Revenue – Variance is due to increase receipts from insurance reimbursements ($803K) predominantly due to the 

portable building fire. 

Contributions – Variance is due to the receipt of contributions not budgeted for, in particular development ($339K) and 

open space contributions ($290K).




Contributions capital – Variance is due to the receipt or recognition of contributions not budgeted for, in particular 

contributed land/infrastructure ($1.002M) and prior year special charge schemes completed in 2011/12 ($2.117M). 

Employee benefits – Variance is mainly due to the recognition in 2011/12 of the future payment (July 2013) for the defined 

superannuation liability ($4.459M), above budgeted increases in long service and annual leave provisions, due in part to 

reductions in long term bond rates for Long Service Leave Calculations, ($690K), salary costs ($419K), maternity leave 

($90K), casuals ($222K) and tutors salaries ($75K). 

Materials & Services – Variance is mainly due to unbudgeted Bushfire and Flood expenditure ($3.014M). 

Bad & Doubtful Debts – An increase in Doubtful Debts expense has resulted from decreased collections from Perin Court. 

Depreciation and Amortisation – Variance due to lower than anticipated completion and capitalisation of asset works. 

Finance Costs – Variance due to unbudgeted Finance Lease interest expenses and higher than anticipated borrowing 

interest costs which will offset by lower than anticipated borrowing redemptions. 

Other Expenses – Variance is due to higher than anticipated Library contributions ($319K) relating to the future payment 

(July 2013) for the defined superannuation liability recognised in 2011/12 and unbudgeted costs relating to the portable 

building fire ($126K) which were reimbursed under Council’s insurance policy. 

Net gain(loss) on disposal of property, plant and equipment – No budget provision was made for any net gain or loss on 

disposal of property, plant and equipment. 

Share of net profits/(losses) of associates – No budget provision was made for a change in equity for Council’s 

investment in the Yarra Plenty Regional Library Service (YPRLS). 

3 Standard Balance Sheet 

Cash and cash equivalents – Variance is due to higher than expected receipts of debtors and higher than anticipated level 

of creditors outstanding at 30 June (see comments below). In addition 50% of the Victorian Grants Commission income for 

2012/13 was received in 2011/12. 

Trade and other receivables (Current) – Receivables are lower than forecast due to higher than anticipated the receipt of 

2010/11 bushfire expense reimbursements from the Department of Treasury and Finance (DTF), increase in the provision for 

doubtful debts and receipt of a capital grant for the construction of the Diamond Creek Stadium during the year. 

Prepayments and accruals – Variance is due to additional accrued bushfire and flood reimbursement funding that were 

unbudgeted, and not received at year end. 

Inventories – Variance relates to the amount of stored fuel at year end. Fuel stock was lower than forecast in the annual 

budget. 

Trade and other receivables (Non-Current) – Receivables are lower than anticipated due to a number of special charge 

schemes not commencing by 30 June. 

Property, infrastructure, plant and equipment – Variance to projected budget outcome due to a prior year adjustment for 

found assets not previously recognised in the financial statements ($68.3M) and revaluation of assets to current replacement 

value ($37.5M). 

Other financial assets – Actual investment in Yarra Plenty Regional Library service was higher than anticipated. 

Trade and other payables – Variance relates to a large number of receive/accrued invoices from suppliers prior to year end. 

This has resulted in payables being higher than anticipated. 

Interest bearing liabilities (Current and Non-Current) – Borrowings that were budgeted for were not taken up due to a 

number of capital works projects being deferred ($2.5M) and borrowing was no longer required ($0.865M).




Provisions (Current and Non-Current) – Overall variance is higher ($449K) than anticipated due to increased levels of 

long service and annual leave. The variance is due in part to reductions in long term bond rates for Long Service Leave 

Calculations 

Trust funds & deposits – The balance is lower than anticipated due to a reduction in the number of developer bonds and 

other trust money received during the financial year. 

Other reserves – Reflects unbudgeted carry forwards and grants received in advance. 

Accumulated Surplus – Variance to budget relates to a prior year adjustment for found assets not previously recognised 

in the financial statements ($68.3M). Opening Accumulated surplus has been adjusted for recognition of previously 

unrecognised non-current assets and changes in the units of measurement for road earthworks. This has resulted in a net 

change to non-current assets of $76.547mil and a net change to accumulated depreciation of $8.240mil (Land $3.838mil, 

Buildings $4.183mil, Roads $59.966mil, Bridges $190k, Drains $130k) . 

4 Standard Statement of Cash Flows 

Payments from Customers – Variance due to Budget figures did not include GST component, while some of the actual 

cash flows received are recorded as GST inclusive and additional statutory fee and fine, insurance reimbursements and 

contribution receipts (see comments above) 

Payments to suppliers – Budget figures did not include GST component, while actual cash flows are recorded as GST 

inclusive. Is accounts for almost 10% of the difference between the budget and actual figures. The remaining variance relates 

to unbudgeted bushfire and flood expenditure during the year and actual loan interest being categorised as Finance Costs 

below. 

Interest received – Variance due to additional interest income received during the year due to additional funds available for 

investment from Grant receipts and lower than anticipated capital works expenditure. 

Government receipts – Variance due to higher than expected grant receipts, particularly bushfire and flood grants which are 

unbudgeted. In addition 50% of the Victorian Grants Commission income for 2012/13 was received in 2011/12. 

Proceeds from sale of property, plant, equipment, infrastructure – Proceeds from sale of property, plant, equipment, and 

infrastructure was lower than budgeted due to delayed finalisation of Council land/property sales during the year. 

Payment for property, plant and equipment – Actual expenditure reflects works completed or undertaken during the year. 

Variance due to several capital projects, including the Civic Centre Refurbishment and Community Bank Stadium – Diamond 

Creek, being budgeted in prior years but completed during 2011/12. 

Proceeds from borrowings – Due to a number of capital works projects have been delayed borrowing needs to fund these 

works has been reduced and carry over to future years. 

Repayment of interest bearing loans and borrowings – Repayment of borrowings is lower than anticipated as the amount 

of borrowings is lower than anticipated. 

Finance Costs – Variance due to budgeted loan interest ($955K) being categorised as Payments to Suppliers above in the 

Adopted Budget. 

5 Standard Statements of Capital Works 

Bridges – Variance due to additional works undertaken on bridge rehabilitation works that had been budgeted for in prior 

years but completed and capitalised in 2011/12. 

Childrens Playground Equipment – Capital work on specific areas are only recognised when complete. Where work has 

been undertaken to renew and upgrade bridges during the financial years and these works have not been completed, 

expenditure is reflected as Work-in-Progress. Project budgets that have not been started or are in progress at year end have 

been carried forward to 2012/13 so that works can be undertaken and completed during that year.




Commercial Centre/Major streetscapes – Capital work on specific areas are only recognised when complete. Where work 

has been undertaken to renew and upgrade bridges during the financial years and these works have not been completed, 

expenditure is reflected as Work-in-Progress. Project budgets that have not been started or are in progress at year end have 

been carried forward to 2012/13 so that works can be undertaken and completed during that year. 

Council Office and Equipment – Variance due to the Civic Centre Refurbishment being budgeted in prior years but 

completed during 2011/12. 

Miscellaneous – Actual expenditure ($114k) was higher than budgeted ($25k) due to works included in prior year budgets 

being completed and capitalised during 2011/12. 

Disability access works – Capital work on specific areas are only recognised when complete. Where work has been 

undertaken to renew and upgrade bridges during the financial years and these works have not been completed, expenditure 

is reflected as Work-in-Progress. Project budgets that have not been started or are in progress at year end have been 

carried forward to 2012/13 so that works can be undertaken and completed during that year. 

Drainage – Drainage expenditure was lower than budgeted. Some additional works on drainage have been undertaken due 

to the floods in February and December 2011. Expenditure on these works have been claimed for reimbursement under 

Natural Disaster Funding arrangements and not capitalised. 

Landfill – Expenditure on Landfill, although budgeted as a capital expense, is treated as a reduction in landfill provision 

(Balance sheet liability) 

Major Leisure Centres – Variance mainly relates to the completion and capitalisation of the Community Bank Stadium – 

Diamond Creek which had been budgeted in previous years. 

Other Council Buildings – Capital work on specific areas are only recognised when complete. Where work has been 



carried forward to 2012/13 so that works can be undertaken and completed during that year. The budget includes works for 

the Hurstbridge Family Centre ($2.1M) and St Andrews Community Centre ($1.35M) projects which have not commenced 

construction and has been carried forward to 2012/13. 

Plant and Vehicle Replacement – Variance reflects lower than anticipated replacement activity of council heavy plant and 

vehicle fleet. 

Public Open space – Variance to budget reflects the part purchase of the Hurstbridge Secondary College site which had 

been budgeted in a previous year. 

Recreation Trails – Capital work on specific areas are only recognised when complete. Where work has been undertaken 

to renew and upgrade bridges during the financial years and these works have not been completed, expenditure is reflected 

as Work-in-Progress. Project budgets that have not been started or are in progress at year end have been carried forward to 

2012/13 so that works can be undertaken and completed during that year. 

Roads – Expenditure on Roads was slightly lower than budget due to periodic maintenance works being expensed and not 

capitalised. 

Sportfields and Pavilions – Capital work on specific areas are only recognised when complete. Where work has been 



carried forward to 2012/13 so that works can be undertaken and completed during that year. 

Traffic Works – Capital work on specific areas are only recognised when complete. Where work has been undertaken to 

renew and upgrade bridges during the financial years and these works have not been completed, expenditure is reflected as 

Work-in-Progress. Project budgets that have not been started or are in progress at year end have been carried forward to 

2012/13 so that works can be undertaken and completed during that year. 

Work in Progress – This reflects works that have commenced but are not completed by 30 June and will be capitalised in 

the future. At the end of each financial year, there will be projects which are not completed and need to be moved into work 

in progress and not reflected in the works categories above. Major project costs that are included in this category are the 

Eltham Lower Park Masterplan Implementation and Fawkner Crescent and The Boulevard/Valaias Special Charge Schemes


Certification of Standard Statements 

In my opinion the accompanying standard statements have been prepared on accounting bases consistent with the financial statements 

and in accordance with the Local Government Act 1989 and the Local Government (Finance and Reporting) Regulations 2004. 

Principal Accounting Officer 

Mark Spaziani CPA 

GREENSBOROUGH 

Date: 28/8/2012 

In our opinion the accompanying standard statements have been prepared on accounting bases consistent with the financial statements 

and in accordance with the Local Government Act 1989 and the Local Government (Finance and Reporting) Regulations 2004. 

As at the date of signing, we are not aware of any circumstances which would render any particulars in the standard statements to 

be misleading or inaccurate. 

On 28 August 2012 we were authorised by the Council to certify the financial report in its final form on behalf of the Council. 


Michael Young (Mayor) 



Ken King 





GREENSBOROUGH


Comprehensive Income Statement 

For the year ended 30 June 2012 

Notes 2012 2011 

$’000 $’000 

REVENUE 

Rates and charges 2 45,224 42,492 

Statutory fees and fines 3 949 1,019 

User fees 4 11,264 10,538 

Grants – Recurrent 5 7,414 5,937 

Grants – Non-recurrent 5 3,284 6,242 

Reimbursements 7 820 340 

Other income 8 2,556 2,619 

Share of net profits (losses) of associates and joint ventures accounted by the equity method 15 148 30 

TOTAL REVENUE 71,659 69,217 

EXPENSES 

Employee benefits 9 (29,739) (23,830) 

Materials and services 10 (30,976) (31,739) 

Bad and doubtful debts 11 (59) – 

Depreciation & amortisation 12 (7,929) (7,672) 

Finance costs 13 (994) (746) 

Contributions to Yarra Plenty Regional Library Service 16 (2,615) (2,067) 

Other expenses 14 (5,611) (5,101) 

TOTAL EXPENSES (77,923) (71,155) 

TOTAL REVENUE 71,659 

NET RESULT PRIOR TO CAPITAL INCOME AND ASSET ITEMS (6,264) (1,938) 

Net gain (loss) on disposal of property, plant and equipment (2,078) (1,960) 

Capital Grants 5 3,011 7,976 

Capital Contributions 6 2,623 3,465 

Contributions – Non-monetary Assets 6 1,072 147 

NET RESULT FOR THE YEAR (1,636) 7,690 

OTHER COMPREHENSIVE INCOME 

Net asset revaluation increment (decrement) 26 37,498 (1,437) 

COMPREHENSIVE RESULT 35,862 6,253 

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

InteDifference Net Assets – Total Equity Should be Zero 0 0


Balance Sheet 

as at 30 June 2012 


$’000 $’000 

Assets 

Current Assets 

Cash and cash equivalents 17 23,712 20,635 

Trade and other receivables 18 4,593 7,544 

Land identified for sale 1(w) 745 745 

Inventories 19 26 40 

Other Assets 20 2,535 3,297 

Total Current Assets 31,611 32,261 

Non-current Assets 

Trade and other receivables 18 2,153 1,989 

Other financial assets 7 7 

Investment in associate accounted for using the equity method 15 1,053 905 

Property, plant and equipment 21 634,838 *590,744 

Total Non-current Assets 638,051 593,645 

Total Assets 669,662 625,906 

Liabilities 

Current Liabilities 

Trade and other payables 22 9,511 4,983 

Trust funds and deposits 23 1,085 1,033 

Provisions 24 6,735 6,351 

Interest-bearing liabilities and borrowings 25 2,710 1,255 

Total Current Liabilities 20,041 13,622 

Non-current Liabilities 

Provisions 24 8,478 8,378 

Interest-bearing liabilities and borrowings 25 13,391 12,017 

Total Non-current Liabilities 21,869 20,395 

Total Liabilities 41,910 34,017 

NET ASSETS 627,752 591,889 


Accumulated surplus 340,478 *340,190 

Reserves 26 287,274 251,699 

TOTAL EQUITY 627,752 591,889 

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

* Nillumbik Shire Council has a correction of an error as outlined in note 1(v). Due to the 

correction of error not being material a third balance sheet has not been presented.


Statement of Changes in Equity 


Asset 

Accumulated Revaluation Other 

Notes Total Surplus Reserve Reserves 

2012 2012 2012 2012 

2012 $ ‘000 $ ‘000 $ ‘000 $ ‘000 

Balance at beginning of the financial year 591,889 340,190 231,533 20,166 

Surplus for the year (1,636) (1,636) – – 

Net asset revaluation increment 26(a) 37,498 – 37,498 – 

Transfer to other reserves 26(b) – (12,171) – 12,171 

Transfer from other reserves 26(b) – 14,095 – (14,095) 

Balance at end of the financial year 627,752 340,478 269,032 18,242 

Asset 

Accumulated Revaluation Other 

Notes Total Surplus Reserve Reserves 


2011 $ ‘000 $ ‘000 $ ‘000 $ ‘000 


Correction of error * 68,307 68,307 – – 

Adjusted Opening Balance 585,636 334,550 232,970 18,116 

Surplus for the year 7,690 7,690 – – 

Net asset revaluation increment 26(a) (1,437) – (1,437) – 

Transfer to other reserves 26(b) – (14,358) – 14,358 

Transfer from other reserves 26(b) – 12,308 – (12,308) 

Balance at end of the financial year 591,889 340,190 231,533 20,166 

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

*Nillumbik shire Council has a correction of an error as outlined in note 1(v).


Cash Flow Statement 



$’000 $’000 

Cash flows from operating activities 

Rates 48,869 38,538 

Statutory fees and fines 949 1,019 

User charges and other fines (GST inclusive) 12,187 11,573 

Grants (GST inclusive) 14,632 21,190 

Developer contributions (GST Inclusive) 2,623 3,497 

Reimbursements (GST Inclusive) 820 340 

Interest 1,201 1,218 

Rents (GST Inclusive) 673 461 

Other receipts (GST Inclusive) 4,340 4,227 

Payments to suppliers (GST Inclusive) (32,299) (35,120) 

Payments to employees (including redundancies) (29,049) (23,260) 

Trust Accounts 52 (9) 

Other payments (8,226) (7,148) 

Net cash provided by operating activities 27 16,772 16,526 

Cash flows from investing activities 

Payments for property, infrastructure, plant and equipment (17,492) (17,555) 

Proceeds from sale of other financial assets 1,867 571 

Net cash (used in) investing activities (15,625) (16,984) 

Cash flows from financing activities 

Finance costs (994) (746) 

Proceeds from interest bearing liabilities and borrowings 4,083 3,620 

Repayment of interest bearing liabilities and borrowings (1,196) (1,129) 

Net cash (used in) financing activities 1,893 1,745 

Change in cash held 

Net increase (decrease) in cash and cash equivalents 3,040 1,287 

Cash and cash equivalents at the beginning of the financial year 20,672 19,385 

Cash at the end of the financial year 28 23,712 20,672 

Non-cash financing and investing activities 29 

Restrictions on cash assets 30 

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


Notes to the Financial Statements 


Introduction 

(a) The Nillumbik Shire Council was 

established by an order of the Governor 

in Council on 15th December 1994 

and is a body corporate. The Council’s 

main office is located at Civic Drive, 

Greensborough 3088. 

(b) The purpose of the Council is to: 

- provide for the peace, order and 

good government of its municipal 

district; 

- to promote the social, economic 

and environmental viability and 

sustainability of the municipal district; 

- to ensure that the resources are used 

efficiently and effectively and services 

are provided in accordance with the 

Best Value Principles to best meet 

the needs of the local community; 

- to improve the overall quality of life of 

people in the local community; 

- to promote appropriate business and 

employment opportunities; 

- to ensure that services and facilities 

provided by the Council are 

accessible and equitable; 

– to ensure the equitable imposition of 

rates and charges; and 

- to ensure transparency and 

accountability in Council decision 

making. 

External Auditor – Auditor-General 

of Victoria 

Internal Auditor – Crowe Horwath 

Solicitor – Maddocks 

Banker – Commonwealth 

Banking Corporation 

Website – www.nillumbik.vic.gov.au 

This financial report is a general purpose 

financial report that consists of a 

Comprehensive Income Statement, 

Balance Sheet, Statement of Changes 

in Equity, Cash Flow Statement, and 

notes accompanying these financial 

statements. The general purpose 

financial report complies with Australian 

Accounting Standards, other authoritative 

pronouncements of the Australian 

Accounting Standards Board, Local 

Government Act 1989, and the Local 

Government (Finance & Reporting) 

Regulations 2004. 

NOTE 1 Significant 

Accounting Policies 

(a) Basis of Accounting 

This financial report has been prepared 

on an accrual and going concern basis. 

This financial report has also been 

prepared under the historical cost 

convention, except where specifically 

stated in notes 1(h), 1(j) & 1(l). 

Unless otherwise stated, all accounting 

policies applied are consistent with those 

of the prior year. Where appropriate, 

comparative figures have been amended 

to accord with current presentation, and 

disclosure made of any material changes 

to comparatives. 

(b) Change in Accounting Policy 

There have been no changes in 

accounting policy. 

(c) Revenue recognition 

Rates, grants, and contributions 

Rates, grants, and contributions 

(including developer contributions) 

are recognised as revenue when 

Council obtains control over the assets 

comprising these receipts. 

Control over assets acquired from rates 

is obtained at the commencement of the 

rating year as it is an enforceable debt 

linked to the rateable property or, where 

earlier, upon receipt of the rates. 

A provision for doubtful debts on rates 

has not been established as unpaid rates 

represent a charge against the rateable 

property that will be recovered when the 

property is next sold. 

Control over granted assets is normally 

obtained upon their receipt (or acquittal) 

or upon earlier notification that a grant 

has been secured, and are valued at their 

fair value at the date of transfer. 

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. 

Where grants or contributions recognised 

as revenues during the financial year 

were obtained on condition that they 

be expended 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 5. The note also 

discloses the amount of unused grant 

or contribution from prior years that was 

expended on Council’s operations during 

the current year. 

A liability is recognised in respect of 

revenue that is reciprocal in nature to the 

extent that the requisite service has not 

been provided at balance date. 

User charges, fees, and fines 

User charges, 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. 

A provision for doubtful debts is 

recognised when collection in full is no 

longer probable. 

Sale of property, plant and equipment 

The profit or loss on sale of an asset is 

determined when control of the asset has 

irrevocably passed to the buyer. 

Interest and rents 

Interest and rents are recognised as 

revenue on a proportional basis when the 

payment is due, the value of the payment 

is notified, or the payment is received, 

whichever first occurs. 

Dividends 

Dividend revenue is recognised when 

the Council’s right to receive payment is 

established. 

(d) Inventories 

Inventories held for distribution are 

measured at cost adjusted when 

applicable for any loss of service 

potential. Other inventories are 

measured at the lower of cost and net 

realisable value.




(e) Depreciation and amortisation of 

non-current assets 

Buildings, land improvements, plant 

and equipment, infrastructure, heritage 

assets and other assets having limited 

useful lives are systematically depreciated 

over their useful lives to 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 infrastructure 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. 

Artworks are not depreciated. 

Straight line depreciation is charged 

based on residual useful life determined 

each year. 

Major depreciation periods used are 

listed below and are consistent with the 

prior year unless otherwise stated: 

Class of Asset 

Useful life in years 

Land Improvements 50 

Playgrounds 10 

Buildings 50-100 

Motor Vehicles 6-7 

Roads 

Road Bases 30-80 

Unsealed, Speed Humps, 

Footpaths, Kerbs & Channels 50 

School Crossings & Sealed Road 

Surfaces 20 

Bike Paths 15 

Office Equipment 

Computers 3 

Other 6-7 

Plant – Major 6-7 

Plant – Minor 6-7 

Sound system 

(Musical Instruments) 10 

Box Trailers 6-7 

Brush Cutters 2-3 

Miscellaneous 4 

Furniture and Fittings 6-7 

Bridges – Concrete/Steel 100 

Bridges – Timber 50 

Culverts 100 

Drains & Pits 

Concrete Pipes 100 

PVC Pipes 50 

Pits 100 

Other Infrastructure Assets 

Litter Bins 5 

Bins (domestic) 10 

Guard Fence 10 

Street Signals 10 

Decorations 6-7 

Fire Hydrants 50 

Bus Shelters 20 

Reserves Furniture 17 

(f) Repairs and maintenance 

Routine maintenance, repair costs, and 

minor renewal costs are expensed as 

incurred. Where the repair relates to the 

replacement of a component of an asset 

and the cost exceeds the capitalisation 

threshold, these amounts are capitalised 

and depreciated. The carrying value of 

the replaced asset is expensed. 

(g) Borrowing costs 

Borrowing costs are recognised as an 

expense in the period in which they are 

incurred. 

Borrowing costs include interest on bank 

overdrafts, interest on borrowings, and 

finance lease charges. 

(h) Recognition and 

measurement of assets 

Acquisition 

The 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 an asset could be exchanged 

between knowledgeable willing parties in 

an arm’s length transaction. 

The following classes of assets 

have been recognised in Note 21. In 

accordance with Council’s policy, the 

threshold limits detailed below have 

applied when recognising assets within 

an applicable asset class. There has 

been no change in threshold in the 

current financial year.




Class of Asset Threshold $ 

Land Improvements 5,000 

Buildings 5,000 

Playgrounds 1,000 

Roads: 

Sealed, Unsealed, Footpaths, 

Kerbs & Channels, Road Bases, 

Bike Paths, Speed Humps, 

School Crossings & Earthworks 5,000 

Office Equipment 1,000 

Plant & Machinery: 

Major Plant 1,000 

Minor Plant 1,000 

Motor Vehicles 

Nil 

Furniture and Fittings 1,000 

Artworks 500 

Bridges: 

Bridges 5,000 

Culverts 5,000 

Pipes (Drainage) 5,000 

Pits (Drainage) 5,000 

Other Infrastructure Assets 5,000 

Land (Including land under roads) 

Work in progress (dependant 

on class of asset and value of 

finished product) 

Nil 

Nil 

Revaluation 

Subsequent to initial recognition of 

assets, non-current physical assets, 

other than plant and machinery, furniture 

and equipment, are measured at fair 

value, being the amount for which the 

assets could be exchanged between 

knowledgeable willing parties in an arms 

length transaction. 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. 

In addition, Council undertakes a 

formal revaluation of land, buildings 

and infrastructure assets on a regular 

basis, currently every second year. 

The valuation is performed either 

by experienced council officers or 

independent experts. 

Where the assets are revalued, the 

revaluation increments are charged 

directly to the asset revaluation reserve 

except to the extent that an increment 

reverses a prior year decrement for 

that class of asset and is recognised 

as revenue up to a maximum of the 

decrement previously recognised as an 

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 into 

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 roads 

Land under roads acquired after 30 

June 2008 is brought to account using 

the deemed cost basis. Council does 

not recognise land under roads that it 

controlled prior to 30 June 2008 in its 

financial report. 

(i) Cash and cash equivalents 

For the purposes of the cash flow 

statement, cash and cash equivalents 

include cash on hand, deposits at call, 

and other highly liquid investments with 

original maturities of three months or 

less, net of outstanding bank overdrafts. 

(j) Other financial assets 

Investment in MAPS and the Local 

Government Health Plan are valued at 

cost. Any dividends paid are taken up as 

revenue. 

(k) Investments 

Investments, other than investments in 

associates, are measured at cost. 

(l) Investment in associate 

Council’s investment in associates is 

accounted for by the equity method as 

the Council has the ability to influence 

rather than control the operations of 

the entities. The investment is initially 

recorded at the cost of acquisition and 

adjusted thereafter for post-acquisition 

changes in the Council’s share of the net 

assets of the entities. The Council’s share 

of the financial result of the entities is 

recognised in the income statement. 

(m) Tender deposits 

Amounts received as tender deposits 

and retention amounts controlled by the 

Council are recognised as Trust Funds 

until they are returned or forfeited (refer to 

Note 23). 

(n) Employee benefits 

Wages and Salaries 

Liabilities for wages and salaries and 

rostered days off are recognised and 

measured as the amount unpaid at 

balance date and include appropriate 

oncosts such as workers compensation 

and payroll costs. 

Annual Leave 

Annual leave entitlements are accrued 

on a pro rata basis in respect of services 

provided by employees up to balance 

date. Annual leave expected to be paid 

within 12 months is measured at nominal 

value based on the amount, including 

appropriate oncosts, expected to be paid 

when settled. Annual leave expected 

to be paid later than one year has been 

measured at the present value of the 

estimated future cash outflows to be 

made for these accrued entitlements. 

Commonwealth bond rates are used for 

discounting future cash flows. 

Long Service Leave 

Long service leave entitlements 

payable are assessed at balance date 

having regard to expected employee 

remuneration rates on settlement, 

employment related oncosts and other 

factors including accumulated years 

of employment on settlement, and 

experience of employee departure per 

year of service.




Long service leave expected to be paid 

within 12 months is measured at nominal 

value based on the amount expected to 

be paid when settled. Long service leave 

expected to be paid later than one year 

has been measured at the present value 

of the estimated future cash outflows to 

be made for these accrued entitlements. 

Commonwealth Bond rates are used for 

discounting future cash flows. 

Classification of employee benefits 

An employee benefit liability is classified 

as a current liability if the Council does 

not have an unconditional right to defer 

settlement of the liability for at least 

12 months after the end of the period. 

This would include all annual leave 

and unconditional long service leave 

entitlements. 

Superannuation 

The superannuation expense for the 

reporting year is the amount of the 

statutory contribution the Council makes 

to the superannuation plan which 

provides benefits to its employees 

together with any movements 

(favourable/unfavourable) in the position 

of any defined benefits schemes. Details 

of these arrangements are recorded in 

Note 31. 

(o) Leases 

Finance Leases 

Leases of fixed assets where substantially 

all the risks and benefits incidental to 

ownership of the asset, but not the legal 

ownership, are transferred to the Council 

are classified as finance leases. Finance 

leases are capitalised, recording an asset 

and liability equal to the present value of 

the minimum lease payments, including 

any guaranteed minimum residual value. 

Lease payments are allocated between 

the reduction of the lease liability and 

the interest expense. Leased assets are 

amortised on a straight line basis over 

their estimated useful lives to the Council 

where it is likely that the Council will 

obtain ownership of the asset or over 

the term of the lease, whichever is the 

shorter. 

Operating Leases 

Lease payments for operating leases are 

recognised as an expense in the years 

in which they are incurred as this reflects 

the pattern of benefits derived by the 

Council. 

(p) Allocation between current and 

non-current 

In the determination of whether an asset 

or liability is current or non-current, 

consideration is given to the time when 

each asset or liability is expected to be 

settled. The asset or liability is classified 

as current if it is expected to be settled 

within the next twelve months, being 

the operational cycle, or if Council does 

not have an unconditional right to defer 

settlement beyond 12 months after the 

reporting date. 

(q) Agreements equally proportionately 

unperformed 

The Council does not recognise assets 

and liabilities arising from agreements 

that are equally proportionately 

unperformed in the balance sheet. 

(r) Web site costs 

Costs in relation to web sites controlled 

by Council are charged as expenses in 

the period in which they are incurred. 

(s) Goods and Services Tax (GST) 

Revenues, expenses and assets 

are recognised net of the amount of 

GST, except where the amount of 

GST incurred is not recoverable from 

the Australian Tax Office. In these 

circumstances the GST is recognised as 

part of the cost of acquisition of the asset 

or as part of an item of the expense. 

Receivables and payables in the balance 

sheet are shown inclusive of GST. 

Cash flows are presented in the cash 

flow statement on a gross basis, except 

for the GST component of investing and 

financing activities, which are disclosed 

as operating cash flows. 

(t) Impairment of assets 

At each reporting date, the Council 

reviews the carrying value of its assets to 

determine whether there is any indication 

that these assets have been impaired. If 

such an indication exists, the recoverable 

amount of the asset, being the higher 

of the asset’s fair value less costs to sell 

and value in use, is compared to the 

assets carrying value. Any excess of the 

assets carrying value over its recoverable 

amount is expensed to the income 

statement. 

(u) Rounding 

Unless otherwise stated, amounts in the 

report have been rounded to the nearest 

thousand dollars. 

(v) Accounting Policies, Changes in 

Accounting Estimates and Errors 

AASB 108 prescribes the criteria for 

selecting and changing accounting 

policies, together with the accounting 

treatment and disclosure of changes 

in accounting policies, changes in 

accounting estimates and corrections 

of errors. 

Opening Accumulated surplus has been 

adjusted for recognition of previously 

unrecognised non-current assets and 

changes in the units of measurement 

for road earthworks. This has resulted 

in a net change to non-current assets 

of $76.547mil and a net change to 

accumulated depreciation of $8.240mil 

(Land $3.838mil, Buildings $4.183mil, 

Roads $59.966mil, Bridges $190k, 

Drains $130k) . 

(w) Non-current assets held for sale 

AASB 5 Non-current Assets Held for Sale 

and Discontinued Operations requires 

an entity to classify a non-current asset 

as held for sale if its carrying amount 

will be recovered principally through its 

sale rather than through continued use. 

A non-current asset classified as held 

for sale is measured at the lower of its 

carrying amount and fair value less costs 

to sell. In addition, depreciation ceases 

when an asset has been classified as 

held for sale.




2012 2011 

$000 $000 

NOTE 2 

Rates and charges 

Council uses Capital Improved Value (CIV) as the basis of valuation of all properties within the municipal district. 

Capital Improved Value is the market value of land and all improvements at a given point in time. 

The valuation base used to calculate general rates for 2011/12 was $12.51 billion (2010/11 $12.43 billion) 

Residential 34,194 32,142 

Commercial/Industrial 1,896 1,793 

Supplementary rates 77 60 

municipal charge 2,090 1,916 

Waste management charge 6,713 6,343 

Special Rates and charges 254 238 

45,224 42,492 

The date of the latest general revaluation of land for rating purposes within the municipal district was 1 January 

2010 and the valuation was first applied in the rating year commencing 1 July 2010. The next general revaluation 

was undertaken 1 January 2012 with application in the rating year commencing 1 July 2012 

NOTE 3 

Statutory fees and fines 

infringements & costs 399 560 

PERIN court recoveries 128 90 

Town planning fees 288 259 

land Information Certificates 30 35 

Animal Infringements 104 75 

949 1,019 

NOTE 4 

User fees 

leisure centre fees 8,546 8,006 

Child care/childrens program fees 303 252 

Aged services fees 242 208 

Registration fees 630 624 

building services fees 158 165 

Subdivision Supervision 112 142 

Pound Release Fees 36 50 

Adult Education 327 325 

business Development 20 15 

Waste Management 582 467 

edendale Farm 124 115 

Other fees and charges 184 169 

11,264 10,538





$000 $000 

NOTE 5 

Grants 

Grants were received in respect of the following: 

Recurrent 

Commonwealth Government – Family and children 190 157 

Victoria grants commission – unallocated 2,358 1,858 

Victoria grants commission – local roads 1,403 1,095 

Community health 103 106 

School crossing supervisors 116 133 

Planning and development 17 – 

maternal and child health 370 371 

Family and children 497 599 

Food services 19 19 

Home help/linkages 1,116 1,047 

Senior citizen centres 32 32 

Adult Education 450 229 

Other 743 291 

Total recurrent 7,414 5,937 

Non-recurrent 

bridges 16 147 

Buildings – 5,397 

emergency Management 122 86 

environmental Planning 180 169 

Recreation 6 851 

Waste Management 6 79 

bushfire 1,143 6,292 

Flood 1,694 – 

Other 117 114 

Total non-recurrent 3,284 13,135 

Capital Grants – Recurrent 

Roads to Recovery 655 1,083 

Total Capital Grants – Recurrent 655 1,083 

Capital Grants – Non-recurrent 

Capital Grants 2,356 1,083 

Total Capital Grants – Non-recurrent 2,356 1,083 

Total Capital Grants 3,011 2,166 

Conditions on Grants 

Grants recognised as revenue during the year and were obtained on the condition 

that they be expended in a specified manner that had not occurred at balance date were: 

Grants for Commercial Centres/Major Streetscapes – 23 

Grants for Other Council Buildings 121 727 

Grants for Recreation Trails 87 3 

Grants for Sportsfields & Pavilions 2 176 

Grants for Traffic Works 13 38 

Grants for Community Planning 57 7 

Grants for Community Services 26 114 

Grants for Economic Development & Major Projects 43 –





$000 $000 

NOTE 5 Grants for Environment & Strategic Planning 88 81 

(cont.) Grants for Family and Childrens Programs 110 198 

Grants for Leisure Services – 11 

Grants for Metro Access 67 87 

Grants for Minor Capital – 13 

Grants for Bushfire Initiatives 927 1,382 

Grants for Youth Services 109 72 

Grants for Major Leisure Centres and Community Halls 1,129 1,361 

Grants for Adult Education Programs 44 10 

Grants for Arts Programs 70 100 

Grants for Infrastructure Maintenance – 81 

Grants for Roads & Drainage 127 77 

Grants for Public Open Space – 304 

Grants for Aged and Disability Services 238 

3,258 4,865 

NOTE 6 

Contributions 

Cash Contributions – Capital 

developer contributions 339 2,118 

Open space (Cash in lieu) 290 235 

Special road scheme contributions 1,779 749 

Capital works contributions 104 353 

Other 111 10 

Total 2,623 3,465 

Non-Monetary Contributions 

Drainage – 32 

Contributed land/infrastructure 1,002 115 

Gifted art work 70 – 

1,072 147 

NOTE 7 

Reimbursements 

Road maintenance/works – 5 

Reinstatement fees 17 113 

insurance reimbursements 803 222 

820 340 

NOTE 8 

Other income 

interest 1,201 1,217 

interest on rates 199 177 

Other rent 263 175 

Sale of valuations 20 198 

Hall & sports ground hire 260 244 

Workcover Insurance recoveries 100 113 

Pound Fees 6 36 

Septic tank fees 65 34 

Community & sporting club project contributions 75 96 

Sale of mobile garbage bins 55 57 

Planning 68 68 

Other 244 204 

2,556 2,619





$000 $000 

NOTE 9 

Employee benefits 

Wages and salaries (19,648) (19,532) 

Casual staff (497) (562) 

Bushfire employee expenses (2) (25) 

long service leave (503) (226) 

Superannuation (6,488) (2,636) 

Fringe benefits tax and workcover (249) (249) 

Redundancy (45) (25) 

Oncost recoveries (2,307) (575) 

(29,739) (23,830) 

NOTE 10 

Materials & services 

Contract payments: 

Leisure (7,849) (7,189) 

External labour hire (537) (697) 

HACC contracts (2,223) (2,258) 

Waste services (923) (911) 

Valuation (290) (113) 

Other (594) (735) 

(12,416) (11,903) 

materials & services: 

Materials, maintenance & equipment (7,530) (7,255) 

Fleet operations (1,751) (1,840) 

IT & telephone (1,266) (1,077) 

Building maintenance (718) (680) 

Emergency management (157) (98) 

Planning & building services (152) (207) 

Corporate support (58) (80) 

Communications (221) (209) 

Corporate information (50) (42) 

Waste services (712) (553) 

Plant hire (4) (19) 

Stationery, printing & postage (252) (276) 

Utilities (823) (801) 

Bushfire (2,904) (5,311) 

Floods (1,230) (658) 

Other (732) (730) 

Total (18,560) (19,836) 

(30,976) (31,739) 

NOTE 11 

Bad and doubtful debts 

Parking related debtors – PERIN Court * (59) – 

(59) – 

* Bad and doubtful debts for parking related debtors relate to provisions raised regarding amounts in excess of 12 

months old which have been referred to Perin Court for collection plus associated costs.





$000 $000 

NOTE 12 

Depreciation and amortisation 

Property 

Land 

Land improvements (97) (319) 

Playgrounds (186) 

Buildings 

Buildings (1,552) (1,509) 

Plant and equipment 

Plant, machinery & vehicles (896) (917) 

Furniture, equipment & computers (46) (47) 

Infrastructure 

Roads (3,199) (2,918) 

Bridges (145) (150) 

Drains (1,418) (1,418) 

Mobile Bins (93) (93) 

Other Infrastructure (297) (301) 

(7,929) (7,672) 

NOTE 13 

Finance costs 

Interest – Borrowings (982) (720) 

Interest – Finance leases (12) (26) 

(994) (746) 

NOTE 14 

Other expenses 

Auditors' remuneration (155) (154) 

Councillors' allowances (215) (210) 

Operating lease rentals (536) (597) 

Insurance premiums (1,038) (806) 

Payment agents & bank fees (139) (138) 

Aged & family services (372) (385) 

Strategic planning (60) (91) 

Economic development (512) (368) 

Council support (12) (66) 

Planning & building (3) (3) 

Waste management (828) (769) 

Municipal laws (83) (84) 

Environmental works (251) (212) 

leisure & education services (7) (8) 

Youth services (13) (5) 

Community development (152) (185) 

Information technology (425) (335) 

Arts and Cultural Services (325) (235) 

Other (485) (450) 

(5,611) (5,101)





$000 $000 

NOTE 15 

Investment in associate accounted for using the equity method 

Yarra Plenty Regional library service 

Background 

Council’s investment in the Yarra Plenty Regional Library Service was increased by 

$148,039 (increase of $30,379 in 2010/11) due to the increase in the net asset 

position of the Corporation (unaudited at 30 June 2012). Council’s equity interest 

based on contributions is 20.76%. 

Council's share of accumulated surplus (deficit) 

Council's share of accumulated surplus (deficit) at start of year 162 132 

Reported surplus (deficit) for year 139 30 

Council's share of accumulated surplus (deficit) at end of year 301 162 

Council's share of reserves 

Council's share of reserves at start of year 11 11 

Transfer to accumulated surplus (11) 

Council's share of reserves at end of year 0 11 

Movement in carrying value of specific investment 

Carrying value of investment at start of year 904 874 

Share of surplus (deficit) for year 148 30 

Adjustment for prior year 

Carrying value of investment at end of year 1,052 904 

Council's share of expenditure commitments 

Operating commitments 164 186 

164 186 

NOTE 16 

Yarra Plenty Regional Library Service 

Contributions (2,615) (2,067) 

Contributions to YPRL include Council's share of Defined Benefit Unfunded liability 

of $329k. 

NOTE 17 

Cash and cash equivalents 

Cash on hand 6 5 

Cash at bank 754 9 

bank bills & Term Deposits 22,952 20,621 

23,712 20,635





$000 $000 

NOTE 18 

Trade and other receivables 

Current 

Rates debtors 2,087 1,941 

Parking infringement debtors 401 391 

Provision for doubtful debts – parking infringements (197) (138) 

Other debtors 662 3,850 

Provision for doubtful debts – other debtors (72) (69) 

miscellaneous Debtors 63 60 

Special charge scheme debtors 1,115 1,056 

Net GST receivable 534 453 

4,593 7,544 

Non-Current 

Special charge scheme debtors 2,153 1,989 

2,153 1,989 

6,746 9,533 

NOTE 19 

Inventories 

Fuel 26 40 

26 40 

NOTE 20 Other Assets 2012 2011 

$000 $000 

Current 

Prepayments 97 83 

Accrued Income 2,438 3,214 

2,535 3,297 

NOTE 21 

Property, plant and equipment 

Summary 

at cost 36,978 66,610 

less: accumulated depreciation/amortisation (16,166) (15,060) 

20,812 51,550 

at Council valuation at 30 June 2012 764,515 – 

at Council valuation at 30 June 2011 – 236,562 

at Council valuation at 30 June 2010 1,688 454,869 

less: accumulated depreciation (152,177) (152,237) 

614,026 539,194 

Total 634,838 590,744





$000 $000 

NOTE 21 

(cont.) 


Property 

land 

at cost – 8,976 

at Council valuation as at 30 June 2012 241,835 – 

at Council valuation as at 30 June 2010 – 208,412 

at anticipated restoration cost (Plenty / Kangaroo Ground Landfill Closure) 11,558 11,558 

Less: accumulated amortisation (11,558) (11,558) 

Land under Roads 278 253 

Controlled Land 7,988 7,157 

250,101 224,798 

Playgrounds 

at Council valuation 30 June 2012 2,655 – 

at Council valuation 30 June 2011 – 2,655 

Less: accumulated depreciation (2,032) (1,846) 

623 809 

land Improvements 

at cost 4,893 4,893 

Less: accumulated depreciation (772) (675) 

4,121 4,218 

Total land 254,845 229,825 

Buildings 

at cost – 12,524 




Total Buildings 68,422 47,575 

Total Property 323,267 277,400 

Valuation of land and buildings were undertaken at 30/06/12 by an independent qualified valuer, Ms. B Stephen 

of Matheson Stephen Valuations. The valuation of buildings is at fair value based on current replacement cost less 

accumulated depreciation. The valuation of land is at fair value, being market value based on highest and best use 

permitted by relevant land planning provisions. All freehold land reserved for public open space is valued at a 

discount of 10 to 30 percent to market value based on zoning and legal precedents.





$000 $000 

NOTE 21 

(cont.) 


Plant and Equipment 

Plant, machinery & vehicles 

at cost 9,277 9,172 


Total 3,238 3,647 

Leased Volvo Loader at cost 132 132 

Less: accumulated amortisation (80) (63) 

52 69 

Leased Hino Sweeper at cost 279 279 


80 120 

Furniture, equipment & computers 

at cost 4,650 3,625 


Total 1,123 146 

Artwork 

Artworks at cost 8 8 

Artworks at valuation 30 June 2010 1,688 1,711 

1,696 1,719 

Total Plant and Equipment 6,189 5,701 

Valuation of Artwork was undertaken by an independent qualified valuer, Leonard Joel Pty Ltd, as at 30 June 2010.





$000 $000 

NOTE 21 

(cont.) 



Roads 


at Council valuation as at 30 June 2011 – 205,815 


Total 164,308 151,911 

Kerb and Channel 


Less: accumulated depreciation (11,360) – 

Total 9,470 – 

Footpaths/Bikepaths 


Less: accumulated depreciation (12,171) – 

Total 11,283 – 

Traffic Treatments 


Less: accumulated depreciation (376) – 

Total 931 – 

Drains 

at cost – 370 




Total 97,911 95,838 

Bridges 




Total 9,567 10,330





$000 $000 

NOTE 21 

(cont.) 


Other Assets: 

Earthworks at Council valuation 30 June 2011 – 28,092 

– 28,092 

Leased mobile bins at cost 1,287 1,287 


543 636 

Other infrastructure assets at cost 8,830 8,481 


4,025 3,973 

Total Infrastructure 298,038 290,780 

Works in progress 

Buildings at cost 1,423 12,631 

Land at cost 205 728 

Playgrounds at cost 54 – 

Land improvements at cost 2,723 2,343 

Roads at cost 2,939 919 

Other Infrastucture at cost – 242 

Total Works in progress 7,344 16,863 

Total property, plant & equipment 634,838 590,744 

Bridges are valued on the basis of replacement cost. Council's Group Manager Infrastructure Services Mr Conal 

Creedon, Bachelor of Engineering (Civil), Graduate Diploma in Municipal Engineering, and MBA (Technology 

Management), performed the valuation for 30 June 2012 on the basis of current replacement cost adjusting for age 

and remaining life of asset. 

Roads and Earthworks are valued on the basis of replacement cost. Council's Group Manager Infrastructure 

Services Mr Conal Creedon, Bachelor of Engineering (Civil), Graduate Diploma in Municipal Engineering, and MBA 

(Technology Management), performed the valuation for 30 June 2012 on the basis of current replacement cost 

adjusting for age and remaining life of asset. 

Council's Group Manager Infrastructure Services Mr Conal Creedon, Bachelor of Engineering (Civil), Graduate 

Diploma in Municipal Engineering and MBA (Technology Management), performed the drainage valuation for 30 June 

2012 on the basis of current replacement cost adjusted for age and the remaining life of asset. 

* Nillumbik Shire Council has an error that, as outlined in note 1(v), has caused a restatement of opening balances 

to land, buildings, roads/earthworks, bridges, and drains.




NOTE 21 

Property, plant and equipment (cont.) 

Balance at 

beginning of 

financial year 

Asset transfers 

between 

classes 

Acquisition/ 

Improvement 

of assets 

Revaluation 

increments 

(decrements) 

(Note 26) 

Land Held for 

Sale Transfer 

Depreciation 

and 

amortisation 

(Note 12) 

WDV of 

disposals Gifted Transfers 

Balance at end 

of financial 

year 

2012 $’000 

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 

Property 

Land 224,798 – 1,984 24,523 – – (1,325) 120 1 250,101 

Playgrounds 809 – – – – (186) – – – 623 

Land improvements 4,218 – – – – (97) – – – 4,121 

Total land 229,825 – 1,984 24,523 – (283) (1,325) 120 1 254,845 

Buildings 47,575 – 6,956 3,569 – (1,552) (1,371) 13,245 68,422 

Total buildings 47,575 – 6,956 3,569 (1,552) (1,371) – 13,245 68,422 

Total property 277,400 – 8,940 28,092 – (1,835) (2,696) 120 13,246 323,267 


Plant, machinery & vehicles 3,836 – 979 – – (896) (549) – – 3,370 

Furniture, equipment & computers 146 – 1,023 – – (46) – – – 1,123 

Artwork 1,719 – 7 (40) – – (60) 70 – 1,696 

Total plant and equipment 5,701 – 2,009 (40) – (942) (609) 70 – 6,189 


Roads/Earthworks 151,999 6,983 919 5,909 – (2,228) (556) 750 532 164,308 

Kerb and Channel – 9,069 381 325 – (382) (50) 127 – 9,470 

Footpaths/Bikepaths – 11,021 170 689 – (589) (13) 5 – 11,283 

Traffic Treatments – 931 – – – – – – – 931 

Drains 95,838 – 196 3,295 – (1,418) – – – 97,911 

Bridges 10,330 – 176 (772) (145) (22) 9,567 

Earthworks 28,004 (28,004) – – – – – – – – 

Leased infrastructure 636 – – – – (93) – – – 543 

Other infrastructure 3,973 – 107 – – (297) – – 242 4,025 

Total Infrastructure 290,780 – 1,949 9,446 – (5,152) (641) 882 774 298,038 


Buildings 12,631 – 482 – – – – – (11,690) 1,423 

Land 728 – 192 – – – – – (715) 205 

Land Improvements 2,343 – 1,418 – – – – – (1,038) 2,723 

Playgrounds – – 54 – – – – 54 

Roads 919 – 2,507 – – – – – (487) 2,939 

Other Infrastructure 242 – – – – – – (242) – 

Total Works in progress 16,863 – 4,653 – – – – – (14,172) 7,344 

Total property, plant and equipment 590,744 – 17,551 37,498 – (7,929) (3,946) 1,072 (152) 634,838




NOTE 21 

Property, plant and equipment (cont.) 

Balance at 

beginning of 

financial year 

Asset transfers 

between 

classes 

Acquisition/ 

Improvement 

of assets 

Revaluation 

increments 

(decrements) 

(Note 26) 

Land Held for 

Sale Transfer 

Depreciation 

and 

amortisation 

(Note 12) 

WDV of 

disposals Gifted Transfers 

Balance at end 

of financial 

year 

2011 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 

Property 

Land 219,652 – 676 – – – – 8 4,462 224,798 

Playgrounds – – 137 (406) – – – – 1,078 809 

Land improvements 14,381 – 209 – – (319) – – (10,053) 4,218 

Total land 234,033 – 1,022 (406) – (319) – 8 (4,513) 229,825 

Buildings 42,745 – 1,274 (1,509) 5,065 47,575 

Total buildings 42,745 – 1,274 – – (1,509) – – 5,065 47,575 

Total property 276,778 – 2,296 (406) – (1,828) – 8 552 277,400 


Plant, machinery & vehicles 4,063 – 1,468 – – (917) (778) – – 3,836 

Furniture, equipment & computers 155 – 37 – – (47) – – – 146 

Artwork 1,711 – 8 – – – – – – 1,719 

Total plant and equipment 5,929 – 1,513 – – (964) (778) – – 5,701 


Roads 155,034 – 144 (1,016) – (2,918) (460) 92 1,123 151,999 

Drains 97,016 – 240 – – (1,418) – – – 95,838 

Bridges 10,683 – – – – (150) (203) – – 10,330 

Earthworks 28,092 – 4 (15) – – (89) 12 – 28,004 

Leased Infrastructure 729 – – – – (93) – – – 636 

Other infrastructure 3,821 – 597 – – (301) – – (144) 3,973 

Total Infrastructure 295,375 – 985 (1,031) – (4,880) (752) 104 979 290,780 


Buildings 2,977 – 10,513 – – – – – (859) 12,631 

Land 67 – 728 – – – – – (67) 728 

Land Improvements 2,238 – 530 – – – – – (425) 2,343 

Other Infrastructure 395 – 157 – – – – – (310) 242 

Total Works in progress 6,905 – 12,798 – – – – – (2,840) 16,863 

Total property, plant and equipment 584,987 – 17,592 (1,437) – (7,672) (1,530) 112 (1,309) 590,744





$000 $000 

NOTE 22 

Trade and other payables 

Trade payables 1,398 989 

Accrued expenses 8,113 3,994 

9,511 4,983 

NOTE 23 

Trust funds and deposits 

Refundable building deposits 82 134 

Refundable civic facilities deposits 4 16 

Retention amounts 224 188 

Other refundable deposits 775 695 

1,085 1,033 

NOTE 24 

Provisions 

Annual Long Service Landfill 

leave leave Restoration Total 

$’000 $’000 $’000 $’000 

2012 


Additional provisions 2,078 1,032 – 3,110 

Amounts used (1,837) (583) (206) (2,626) 

Balance at the end of the financial year 1,910 3,891 9,412 15,213 


Balance at beginning of the financial year 1,448 3093 9,852 14,393 

Additional provisions 221 575 – 796 

Amounts used – (226) (234) (460) 

Balance at the end of the financial year 1,669 3,442 9,618 14,729 


(a) Employee benefits $’000 $’000 

Current (i) 

Annual leave 1,910 1,669 

Long service leave 3,340 2,991 

5,250 4,660 

Non-Current (ii) 

Long service leave 551 451 

551 451 

Aggregate carrying amount of employee provisions 

Current 5,250 4,660 

Non-current 551 451 

5,801 5,111




NOTE 24 

(cont.) 

Provisions 

All annual leave and unconditional vested LSL representing 7 years of continuous service is: 

(a) disclosed in accordance with AASB 101, as a current liability where the agency expects to settle the liability within 

12 months as it will not have the unconditional right to defer the settlement of the entitlement should an employee 

take leave within 12 months; 

(b) measured at; 

- nominal value under AASB 119 where a component of this current liability is expected to fall due within 12 

months after the end of the period; and 

- present value under AASB 119 where Council does not expect to settle a component of this current liability within 

12 months or not expected to be settled within 12 months. 

LSL representing less than 7 years of continuous service is: 

(a) disclosed in accordance with AASB 101 as a non-current liability; and 

(b) measured at present value under AASB 119 where Council does not expect to settle this non-current liability 

within 12 months. 

In 2009/10 the current portion of LSL represented any continuous service over 7 years irrespective of whether it was 

expected to be taken. 

The following assumptions were adopted in measuring the present value of employee benefits: 


Weighted average increase in employee costs 3.50% 3.50% 

Weighted average discount rates 2.78% 4.96% 

A weighted average discount rate of 4.96% was assumed in measuring the present value of long service leave entitlements. 


(i) Current $’000 $’000 

All annual leave and the long service leave entitlements representing 7 or more years 

of continuous service 

- Short-term employee benefits, that fall due within 12 months after the end of the period 

measured at nominal value 1910 1669 

- Other long-term employee benefits that do not fall due within 12 months after the end 

of the period measured at present value 3340 344 

(ii) Non-Current 

5,250 2,013 

Long service leave representing less than 7 years of continuous service measured at present value 551 3,098 

(b) Provisions 

Landfill restoration 

Current 1,485 1,691 

Non-current 7,927 7,927 

9,412 9,618





$000 $000 

NOTE 25 

Interest-bearing liabilities and borrowings 

Current 

loans – secured 2,648 1,197 

2,648 1,197 

Non-Current 

loans – secured 13,300 11,864 

Total 15,948 13,061 

The maturity profile for Council’s borrowings is: 

Not later than one year 2,648 1,197 

later than one year and not later than five years 4,656 5,110 

later than five years 8,644 6,754 

Finance Leases 

Council had the following obligations under finance leases for the lease of mobile 

garbage bins, Volvo Loader and Hino Sweeper (the sum of which is recognised as 

a liability after deduction of future lease finance charges included in the obligation): 

15,948 13,061 

Not later than one year 62 58 

later than one year and not later than five years 91 153 

153 211 

minimum lease payments 166 237 

less: Future finance charges (13) (26) 

Recognised in the statement of financial position as: 153 211 

Current 

Leases 62 58 

Non-Current 

Leases 91 153 

Total 153 211 

Aggregate carrying amount of interest-bearing liabilities and borrowings: 

Current 2,710 1,255 

Non-current 13,391 12,017 

16,101 13,272




NOTE 26 

Reserves 

Balance at beginning Increment Balance at end 

of reporting period (decrement) of reporting period 

(a) Asset revaluation reserve $000 $000 $000 


Property 

Land/Land Improvements/Playgrounds 120,857 24,523 145,380 

Buildings 7,850 3,569 11,419 

128,707 28,092 156,799 

Plant & equipment 

Plant, machinery & vehicles 535 – 535 

Furniture, equipment & computers 689 – 689 

Artwork 841 (40) 801 

2,065 (40) 2,025 


Roads/earthworks 38,318 6,923 45,241 

Bridges 4,288 (772) 3,516 

Drainage 57,754 3,295 61,049 

Other infrastructure 401 – 401 

100,761 9,446 110,207 

Total Asset Revaluation reserves 231,533 37,498 269,032 


Property 

Land/Land Improvements 121,263 (406) 120,857 

Buildings 7,850 – 7,850 

129,113 (406) 128,707 

Plant & equipment 

Plant, machinery & vehicles 535 – 535 

Furniture, equipment & computers 689 – 689 

Artwork 841 – 841 

2,065 – 2,065 


Roads/earthworks 39,349 (1,031) 38,318 

Bridges 4,288 – 4,288 

Drainage 57,754 – 57,754 

Other infrastructure 401 – 401 

101,792 (1,031) 100,761 

Total Asset Revaluation reserves 232,970 (1,437) 231,533




NOTE 26 Reserves 

(cont.) 

Balance at beginning Net Transfer (To)/From Balance at end 

of reporting period Accum. Surplus of reporting period 

(b) Other reserves $000 $000 $000 


* Statutory Cash Backed Reserved 

Reserve – Open Space 758 (180) 578 

Reserve – Yarrambat Drainage Scheme 661 3 664 

Reserve – Yarrambat Drainage Extension Area 130 6 136 

Reserve – Street Light Contributions 28 – 28 

Reserve – Street Trees 76 – 76 

Total Cash Backed Statutory Reserves 1,653 (171) 1,482 

** Discretionary Reserves 

Reserve – Public Art Program 136 83 219 

Reserve – C/Forward Projects 10,494 (2,206) 8,288 

Reserve – Information Technology – 367 367 

Reserve – Eltham Town Centre Development 24 (24) – 

Reserve – Leisure Centre Profit Share 142 80 222 

Reserve – Plant Replacement 645 673 1,318 

Reserve – Property Management 1,045 (800) 245 

Reserve – York Street 108 (108) – 

Reserve – Bolton Street 6 (6) – 

Reserve – Hyde & Bage Streets 37 (37) – 

Reserve – Fairdell Crescent 9 (9) – 

Reserve – ETC Bus Development 36 (36) – 

Reserve – Diamond Creek SCS 7 (7) – 

Reserve – Bridgeford Estate 59 1 60 

Reserve – Garbage Truck Residual 41 (41) – 

Reserve – Plenty Tip Restoration 2,429 347 2,776 

Reserve – DPO 1 Infrastructure 249 10 259 

Reserve – DCP 01 Open Space 134 6 140 

Reserve – Civic Centre Development 80 (80) – 


Reserve – DCP 04 Open Space 665 (274) 391 



Reserve – Development Contribution Construction 146 15 161 

Reserve – Native Vegetation 61 – 61 

Reserve – Hurstbridge Special Rates 15 (15) – 

Reserve – Watersmart – – – 

Reserve – Grants Program Management 57 (14) 43 

Reserve – Bushfire Grants 132 (102) 30 

Reserve – Unallocated 3 30 33 

Reserve – L&L Training Facility Development – 32 32 

Reserve – L2P – 5 5 

Reserve – BF Youth Services – 20 20 

Total Discretionary Reserves 18,513 (1,753) 16,760 

Total Other Reserves 20,166 (1,924) 18,242




NOTE 26 Reserves 

(cont.) 

Balance at beginning Net Transfer (To)/From Balance at end 

of reporting period Accum. Surplus of reporting period 

(b) Other reserves $000 $000 $000 


* Statutory Cash Backed Reserved 

Reserve – Open Space 650 108 758 

Reserve – Yarrambat Drainage Scheme 635 26 661 

Reserve – Yarrambat Drainage Extension Area 94 36 130 

Reserve – Street Light Contributions 27 1 28 

Reserve – Street Trees 88 (12) 76 

Total Cash Backed Statutory Reserves 1,494 159 1,653 

** Discretionary Reserves 

Reserve – Public Art Program 121 15 136 

Reserve – C/Forward Projects 8,669 1,825 10,494 

Reserve – Eltham Town Centre Development 24 – 24 

Reserve – Leisure Centre Profit Share 52 90 142 

Reserve – Plant Replacement 566 79 645 

Reserve – Property Management 1,548 (503) 1,045 

Reserve – York Street 108 – 108 

Reserve – Bolton Street 6 – 6 

Reserve – Hyde & Bage Streets 37 – 37 

Reserve – Fairdell Crescent 9 – 9 

Reserve – ETC Bus Development – 36 36 

Reserve – Diamond Creek SCS 30 (23) 7 

Reserve – Bridgeford Estate 58 1 59 

Reserve – Garbage Truck Residual 287 (246) 41 

Reserve – Plenty Tip Restoration 2,015 414 2,429 



Reserve – Civic Centre Development 1,119 (1,039) 80 





Reserve – Development Contribution Construction 146 – 146 

Reserve – Native Vegetation 61 – 61 

Reserve – Hurstbridge Special Rates 6 9 15 

Reserve – Watersmart 32 (32) – 

Reserve – Grants Program Management 57 – 57 

Reserve – Bushfire Grants 102 30 132 

Reserve – Unallocated – 3 3 

Total Discretionary Reserves 16,622 1,891 18,513 

Total Other Reserves 18,117 2,050 20,166 

* Statutory reserves are those for which Council is required to separately account for by statute. Funds are held for 

specific purposes as described in the reserve account name. 

** Discretionary Reserves are those for which Council does have discretion over the manner in which funds are 

expended. Funds held in these reserve accounts are held for the purposes describe in the reserve account name.





$000 $000 

NOTE 27 

Reconciliation of cash flows from operating activities to surplus or deficit 

Surplus (deficit) for the year (1,636) 7,690 

Gifted infrastructure/artwork (1,072) (115) 

depreciation/amortisation 7,929 7,672 

(Profit)/loss on disposal of property, plant and equipment, infrastructure 2,078 1,960 

landfill accumulated amortisation – – 

Adjustment to equity interest Yarra Plenty Regional Library (148) (30) 

Finance Costs 994 746 

Change in assets and liabilities: 

(Increase)/decrease in trade and other receivables 2,787 (3,125) 

(Increase)/decrease in other assets 762 (975) 

Increase/(decrease) in trade and other payables 4,528 2,383 

(Decrease)/increase in trust funds 52 (9) 

(Increase)/decrease in inventories 14 (7) 

(Decrease)/increase in provisions 484 336 

Net cash provided by/(used in) operating activities 16,772 16,526 

NOTE 28 

Reconciliation of cash and cash equivalents 

Cash and cash equivalents (see Note 17) 23,712 20,635 

Bank Overdraft – – 

Net cash at end of the Financial Year 23,712 20,635 

NOTE 29 

Non cash financing and investing activities 

bank overdraft & drawdown available 1,145 1,145 

Unused facilities 1,145 1,145 

NOTE 30 

Restricted assets 

Council has cash and cash equivalents (Note 17) that are subject to restrictions. As at the 

reporting date, Council had legislative restrictions in relation to reserve funds (Recreational 

Lands Reserves). Due to the change in Long Service Leave Regulations Council is no longer 

required to set aside funds for Long Service Leave liabilities, however Council has chosen to 

continue setting aside funds for Long Service Leave in a separately held long term deposit. 

long service leave (note 24(a)) 3,950 3,226 

Reserve funds – Statutory (note 26) 1,482 1,653 

* Reserve funds – Discretionary (note 26) 16,760 14,854 

Trust Deposits (note 23) 1,085 1,033 

* Discretionary reserves reflect grant funding received in advance and other 

reserves that Council have put aside to fund future capital and operating activities. 

23,277 20,766




NOTE 31 


Nillumbik Shire Council makes employer superannuation contributions in respect of its employees to the Local 

Authorities Superannuation Fund (the Fund). Obligations for contributions are recognised as an expense in profit or 

loss when they are due. The fund has two categories of membership, each of which is funded differently. 

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 (9% 

required under the Superannuation Guarantee Legislation). No further liability accrues to the employer as the 

superannuation benefits accruing to employees are represented by their share of the net assets of the Fund. 

The Fund’s Defined Benefits Plan is a multi-employer sponsored plan. As the Plan’s assets and liabilities are pooled 

and are not allocated by employer, the Actuary is unable to reliably allocate benefit liabilities, assets and costs 

between employers. As provided under Paragraph 32 (b) of AASB 119, Council does not use defined benefit 

accounting for these contributions. 

Council makes employer contributions to the defined benefits category of the Fund at rates determined by Trustee on 

the advice of the Fund’s Actuary. On the basis of the results of the most recent full actuarial investigation conducted 

by the Fund’s Actuary as at 31 December 2008, Council makes the following contributions: 

- 9.25% of members’ salary (same as previous year); 

- the difference between resignation and retrenchment benefits paid to any retrenched employees, plus contribution 

tax (same as previous year) 

The Fund surplus or deficit (ie the difference between fund assets and liabilities) is calculated differently for funding 

purposes (ie calculating required contributions) and for the calculation of accrued benefits as required in AAS25 to 

provide the values needed for the AASB119 disclosure in the council’s financial statements. AAS25 requires that 

the present value of the defined benefit liability be calculated based on benefits that have accrued in respect of 

membership of the plan up to the measurement date, with no allowance for future benefits that may accrue. 

The Local Authorities Superannuation Fund latest 31 December 2011 actuarial investigation identified an unfunded 

liability of $406 million excluding the contributions tax in the defined benefit fund of which we are a member. Council 

was made aware of the expected shortfall through the year and was informed formally of their share of the shortfall 

on 31 July 2012 which amounted to (including contributions tax) $4,458,807 for Council and $328,679 for Council’s 

share of the Yarra Plenty Regional Library corporations unfunded liability. The liability is payable on 1 July 2013 

however Council has the option of a staged repayment plan. Council will examine the best funding option over 

coming months, and make a decision on this in early 2013 as part of the budget process. Council has accounted for 

this shortfall in the Comprehensive Income Statement in Employee Benefit (see note 9) and in Contributions to the 

Yarra Plenty Regional Library Corporation (see note 16) and in the Balance Sheet in Trade and other Payables (see 

note 22). 

Fund 2012 2011 

$000 $000 

Defined benefit plans 

Employer contributions to Local Authorities Superannuation Fund (Vision Super) 248 241 

248 241 

Accumulation Funds 

Employer contributions to Local Authorities Superannuation Fund (Vision Super) 1,311 1,245 

employer contributions to other funds 470 365 

1,781 1,610




NOTE 32 

Commitments 

The Council has entered into the following commitments: 

Later than 

Later than 

Not later 1 year and not 2 year and not Later than 

2012 than 1 year later than 2 years later than 5 years 5 years Total 

$000 $000 $000 $000 $000 

Operating 

Sports & leisure 1,755 1,979 321 – 4,055 

Garbage service 673 673 2,020 673 4,039 

Information Technology 431 222 231 – 884 

Strategic Community Programs 1,423 1,491 1,581 – 4,495 

Infrastructure 173 – – – 173 

Total 4,455 4,365 4,153 673 13,646 

Capital 

Construction works 140 – – – 140 

Plant & equipment* 161 152 320 339 972 

301 152 320 339 1,112 

Total Total 4,756 4,516 4,473 1,012 14,758 


Sports & leisure 1,565 1,616 1,668 – 4,849 

Garbage service * 232 279 6 – 517 

Information Technology 109 33 – – 142 

Total 1,906 1,928 1,674 – 5,508 

Capital 

Construction works 8,505 – – – 8,505 

Plant & equipment* 94 94 162 39 387 

8,599 94 – – 8,892 

Total 10,505 2,021 1,835 39 14,400 

* Note these amounts include Finance Lease committments 


$000 $000 

NOTE 33 

Operating leases 

At reporting date the Council had the following obligations under non-cancellable operating leases for the lease of 

equipment and land and buildings for use within Council’s activities (these obligations are not recognised as liabilities): 

Not later than one year 1,048 263 

later than one year and not later than five years 2,748 133 

later than five years 1,014 – 

4,810 396





$000 $000 

NOTE 34 

Contingent liabilities and contingent assets 

Guarantees for loans to other entities 

Hurstbridge Pony Club 46 46 

Plenty Tennis Club 26 26 

Diamond Creek Netball Club 18 18 

Diamond Creek Bowling Club 170 170 

Yarrambat Junior Football Club 35 35 

Diamond Creek Tennis Club 15 15 

Plenty Tennis Club 80 80 

Hurstbridge Bowling and Recreation Club 101 101 

Eltham Recreation Bowling Club 60 60 

Kangaroo Ground Tennis Club 50 50 

Greensborough Hockey Club 350 350 

951 951 


Council has possible future obligations in respect of the defined benefits category of the Local Authorities 

Superannuation Fund. Refer Note 31. 

Public Liability 

As a local authority with ownership of numerous parks, reserves, roads and other land holdings, the Council regularly 

receives claims and demands allegedly arising from incidents which occur on land belonging to Council. There are a 

number of outstanding claims against Council in this regard. Council carries $400 million of public liability insurance 

and has an excess of $10,000 on this policy in 2012 ($10,000 in 2011). Therefore, the maximum liability of Council 

in any single claim is the extent of its excess. The primary insurer is Civic Mutual Plus. There are no claims of which 

Council is aware which would fall outside the terms of Council’s policy. 

Professional Indemnity 

As a local authority with statutory regulatory responsibilities, including the responsibility of issuing permits and 

approvals, Council receives claims and demands for damages allegedly arising from actions of Council or its officers. 

Council carries $300 million of professional indemnity insurance and has an excess of $10,000 on this policy in 

2012 ($10,000 in 2011). Therefore, the maximum liability of Council in any single claim is the extent of its excess. 

The primary insurer is Civic Mutual Plus. There are no instances or claims of which Council is aware which would fall 

outside the terms of Council’s policy. 

Legal Matters 

The Council is not presently involved in any significant legal matters. No allowance has been made in the financial 

report for contingencies of a legal nature. 

Contingent Assets 

From time to time Council receives gifted infrastructure assets from property developers. The nature and timing of 

these assets is conditional upon subdivisional requirements being completed. Once received by Council ongoing 

maintenance costs become the responsibility of the Council.




NOTE 35 

Financial instruments – (a) Accounting policy, terms and conditions 

Financial instruments NOTE Accounting policy Terms and conditions 

Financial assets 

Cash and cash 

equivalents 

17 

Cash on hand and at bank and money 

market call account are valued at face 

value. Interest is recognised as it accrues. 

Investments and bills are valued at cost. 

Revenues are recognised as they accrue. 

Investments are held to maximise interest 

returns of surplus cash. Interest revenues 

are recognised as they accrue. 

On call deposits returned 

a floating interest rate of 

3.40% to 4.80% in 2011/12. 

The interest rate at balance 

date was 3.40% (4.80% in 

2010/11). Funds returned 

fixed interest rate of between 

4.80% to 6.31% in 2011/12 

(4.86% to 6.40% in 2010/11) 

net of fees. 

Trade and other 

receivables 

18 

Receivables are carried at nominal 

amounts due less any provision for 

doubtful debts. A provision for doubtful 

debts is recognised when collection in 

full is no longer considered probable. 

Collectability of overdue accounts is 

assessed on an ongoing basis. 

General debtors are 

unsecured and arrears do not 

attract interest.Credit terms 

are based on 30 days. 

Financial Liabilities 

Trade and other 

payables 

22 

Liabilities are recognised for amounts 

to be paid in the future for goods and 

services provided to Council as at balance 

date whether or not invoices have been 

received. 

General Creditors are 

unsecured, not subject to 

interest charges and are 

normally settled within 30 days 

of invoice receipt. 

Interest-bearing loans 

and borrowings 

25 

Loans are carried at their principal 

amounts, which represent the present 

value of future cash flows associated with 

servicing the debt. Interest is accrued over 

the period it becomes due and recognised 

as part of payables. 

Finance leases are accounted for at their 

principal amount with the lease payments 

discounted to present value using the 

interest rate implicit in the leases. 

Borrowings are secured by 

way of mortgages over the 

general rates of the Council. 

The weighted average on 

borrowings is 6.94% during 

2011/12 (7.38% in 2010/11). 

As at balance date, the 

Council had finance leases 

with an average lease term of 

7 years. 

Bank overdraft 

29 

Overdrafts are recognised at the principal 

amount. Interest is charged as an expense 

as it occurs. 

The overdraft is subject to 

annual review. It is secured 

by a mortgage over Council’s 

general rates and is repayable 

on demand. Interest rates on 

utilised overdraft were 10.08% 

(10.49% 2010/11). The interest 

rate as at balance date was 

10.08% (10.49% 2010/11). 

Trust Funds 

23 

Refundable deposits and other amounts 

are held in trust until satisfactory 

completion of works. 

No interest is paid on 

deposits held




NOTE 35 

(cont.) 

Financial Instruments 

(b) Interest rate risk 

The exposure to interest rate risk and the effective interest rates of financial assets and financial liabilities, both 

recognised and unrecognised, at balance date are as follows: 

Fixed Interest rate maturing in: 

Floating 1 year Over 1 to More than Non-interest Total 

Interest Rate or less 5 years 5 years bearing 

$000 $000 $000 $000 $000 $000 

2012 < 1 year 1 – 5 years > 5 years 


Cash and cash equivalents 754 22,952 – – 6 23,712 

Other financial assets – – – – 7 7 

Trade and other receivables – 5,355 – – 1,391 6,746 

Accrued income – – – – – – 

Total financial assets 754 28,307 – – 1,404 30,465 

Weighted average interest rate 4.58% 5.63% 

Financial liabilities 

Trade and other payables – – – – 9,511 9,511 

Trust funds and deposits – – – – 1,085 1,085 

Interest-bearing liabilities – 2,710 4,747 8,644 – 16,101 

Total financial liabilities – 2,710 4,747 8,644 10,596 26,697 


Net financial assets (liabilities) 754 25,597 (4,747) (8,644) (9,192) 3,768 



Cash and cash equivalents 9 20,621 – – 5 20,635 

Other financial assets – – – – 7 7 

Trade and other receivables – 4,986 – – 4,547 9,533 

Accrued income – – – – – 

Total financial assets 9 25,607 – – 4,559 30,175 



Trade and other payables – – – – 4,983 4,983 

Trust funds and deposits – – – – 1,033 1,033 

Interest-bearing liabilities – 1,255 5,263 6,754 – 13,272 

Total financial liabilities – 1,255 5,263 6,754 6,016 19,288 

Weighted average interest rate 7.41% 

Net financial assets (liabilities) 9 24,352 (5,263) (6,754) (1,457) 10,887




NOTE 35 

(cont.) 


(c) Net fair value 

The aggregate net fair values of financial assets and financial liabilities, both recognised and unrecognised, at balance 

date are as follows: 

Financial instruments 

Total carrying amount as per 

Balance Sheet 

Aggregate net fair value 


$000 $000 $000 $000 

(1) Financial assets 

Cash and cash equivalents 23,712 20,635 23,712 20,635 

Other financial assets 7 7 7 7 

Trade and other receivables 6,746 9,533 6,746 9,533 

Accrued income – – – - 

Total financial assets 30,465 30,175 30,465 30,175 


Trade and other payables 9,511 4,983 9,511 4,983 

Trust funds and deposits 1,085 1,033 1,085 1,033 

interest-bearing liabilities 16,101 13,272 16,101 13,272 

Total financial liabilities 26,697 19,288 26,697 19,288 

(d) Credit risk 

The maximum exposure to credit risk at balance date in relation to each class of recognised financial asset is 

represented by the carrying amount of those assets as indicated in the Balance Sheet. 

(e) Risks and mitigation 

The risks associated with our main financial instruments and our policies for minimising these risks are detailed below. 

Market risk 

Market risk is the risk that the fair value or future cash flows of our financial instruments will fluctuate because of 

changes in market prices. The Council’s exposures to market risk are primarily through interest rate risk with only 

insignificant exposure to other price risks and no exposure to foreign currency risk. Components of market risk to 

which we are exposed are discussed below. 

Interest rate risk 

Interest rate risk refers to the risk that the value of a financial instrument or cash flows associated with the instrument 

will fluctuate due to changes in interest rates. 

Market interest rates 

Interest rate risk arises from interest bearing financial assets and liabilities that we use. Non derivative interest 

bearing assets are predominantly short term liquid assets. Our interest rate liability risk arises primarily from long 

term loans and borrowings at fixed rates which exposes us to fair value interest rate risk. 

Our loan borrowings are sourced from major Australian banks by a tender process. Finance leases are sourced from 

major Australian financial institutions. Overdrafts are arranged with the Commonwealth Bank of Australia.




NOTE 35 

(cont.) 


We manage interest rate risk on our net debt portfolio by: 

- ensuring access to diverse sources of funding; 

- reducing risks of refinancing by managing in accordance with target maturity profiles; and 

- setting prudential limits on interest repayments as a percentage of rate revenue. 

We manage the interest rate exposure on our net debt portfolio by appropriate budgeting strategies and obtaining 

approval for borrowings from the Australian Loan Council each year. 

Investment of surplus funds is made with approved financial institutions under the Local Government Act 1989. We 

manage interest rate risk by adopting an investment policy that ensures: 

- conformity with State and Federal regulations and standards, 

- adequate safety, 

- appropriate liquidity, 

- diversification by credit rating, financial institution and investment product, 

- monitoring of return on investment, 

- benchmarking of returns and comparison with budget. 

Maturity will be staggered to provide for interest rate variations and to minimise interest rate risk. 

Credit risk 

Credit risk is the risk that a contracting entity will not complete its obligations under a financial instrument and cause 

us to make a financial loss. We have exposure to credit risk on all financial assets included in our balance sheet. To 

help manage this risk: 

- we have a policy for establishing credit limits for the entities we deal with; 

- we may require collateral where appropriate; and 

- we only invest surplus funds with financial institutions which have a recognised credit rating specified in our 

investment policy. 

Trade and other receivables consist of a large number of customers, spread across the consumer, business and 

government sectors. Credit risk associated with the Council’s financial assets is minimal because the main debtor is 

the Victorian Government. Apart from the Victorian Government we do not have any significant credit risk exposure 

to a single customer or groups of customers. Ongoing credit evaluation is performed on the financial condition of our 

customers and, where appropriate, an allowance for doubtful debts is raised. 

We may also be subject to credit risk for transactions which are not included in the balance sheet, such as when we 

provide a guarantee for another party. Details of our contingent liabilities are disclosed in note 34. 

Liquidity risk 

Liquidity risk includes the risk that, as a result of our operational liquidity requirements: 

– we will not have sufficient funds to settle a transaction on the date; 

– we will be forced to sell financial assets at a value which is less than what they are worth; or 

– we may be unable to settle or recover a financial assets at all. 

To help reduce these risks we: 

- 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 of loan principal 

repayments to rate revenue. 

The Councils exposure to liquidity risk is deemed insignificant based on prior periods’ data and current assessment of risk.




NOTE 35 

(cont.) 


(f) Sensitivity disclosure analysis 

Taking into account past performance, future expectations, economic forecasts, and management’s knowledge and 

experience of the financial markets, the Council believes the following movements are ‘reasonably possible’ over the 

next 12 months (Base rates are sourced from Reserve Bank of Australia): 

– A parallel shift of +1.5% and -1.25% in market interest rates (AUD) from year-end rates of 4.75%. 

The table below discloses the impact on net operating result and equity for each category of financial instruments 

held by the Council at year-end, if the above movements were to occur. 

Interest rate risk 

Market risk exposure Carrying amount -1% 2% 

subject to interest 100 basis points 200 basis points 

Profit Equity Profit Equity 

$’000 $’000 $’000 $’000 $’000 


Financial assets: 

Cash and cash equivalents 23,706 (237) (237) 474 474 

Trade and other receivables 5,355 (54) (54) 107 107 

Financial liabilities: 

Interest-bearing loans and borrowings 16,101 (161) (161) 322 322 


Financial assets: 

Cash and cash equivalents 20,630 (206) (206) 413 413 

Trade and other receivables 3,045 (30) (30) 61 61 

Financial liabilities: 

Interest-bearing loans and borrowings 13,272 (133) (133) 265 265 


$000 $000 

NOTE 36 

Auditors remuneration 

Audit fee to conduct external audit – Victorian Auditor-General 56 54 

Internal audit/professional fees – Crowe Horwath 97 100 

153 154 

NOTE 37 

Events occurring after balance date 

To Council’s knowledge there have been no significant events after balance date which would influence the financial 

result for the year.




NOTE 38 

Related party transactions 

(i) Names of persons holding the position of a Responsible Person at Nillumbik Shire Council at any time during the 

year are: 

Councillors (elected 28 November 2008) 




Cr Ken King 

Cr Michael Young (Mayor) 


Cr Peter Perkins (elected 15 June 2010) 


Mr Stuart Burdack 

(ii) Remuneration of Responsible Persons 

The numbers of Responsible Officers, whose total remuneration from Council 

and any related entities fall within the following bands: 


$10,001 – $20,000 - 1 

$20,001 – $30,000 5 5 

$30,001 – $40,000 1 1 

$50,001 – $60,000 1 1 

$210,001 – $220,000 - 1 

$250,001 – $260,000 1 - 

Totals 8 9 

Total remuneration for the reporting year for $’000 $’000 

Responsible Persons included above amounted to: 470 437 

(iii) No retirement benefits have been made by the Council to a Responsible Person (2010/11, nil) 

(iv) No loans have been made, guaranteed or secured by the Council to a Responsible Person during the reporting 

year (2010/11, nil). 

(v) Other transactions 

No transactions other than remuneration payments or the reimbursement of approved expenses were entered 

into by Council with Responsible Persons, or related parties of such Responsible Person during the reporting year 

(2010/11, nil). 

(vi) Senior officers remuneration 

A Senior Officer other than a Responsible Person, is an officer of Council who has 

management responsibilities and reports directly to the Chief Executive Officer or those 

whose total annual remuneration exceeds $127,000. The number of senior officers 

other than the Responsible Persons, are shown below in their relevant income bands: 


Less than $127,000 1 9 

$127,001 – $130,000 2 1 

$130,001 – $140,000 8 5 

$140,001 – $150,000 3 - 

$160,001 – $170,000 - 2 

$170,001 – $180,000 2 1 

$180,001 – $190,000 2 - 

Totals 18 18 

Total Remuneration including bonus payments for the reporting year for $’000 $’000 

Senior Officers included above amounted to: 2,601 2,186 

NOTE 39 

Joint venture information 

Council is not involved in any joint ventures at balance date.




NOTE 40 

Income, expenses and assets by function/activities 

Environment & 

Planning Services 

Leisure & 

Community 

Services 


Services 

Corporate 

Services 

Executive 

Services 

Total 

2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 

$’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 

INCOME 

Grants 322 748 3,000 3,476 5,247 9,511 2,791 1,859 – – 11,360 15,594 

Other 1,944 1,243 10,548 10,661 24,591 24,275 50,854 46,791 – – 87,937 82,970 

Total 2,266 1,991 13,548 14,137 29,838 33,786 53,645 48,650 – – 99,297 98,564 

EXPENSES 7,408 7,211 21,820 20,004 42,062 43,009 28,827 19,899 816 751 100,933 90,874 

SURPLUS/ (5,142) (5,220) (8,272) (5,867) (12,224) (9,223) 24,818 28,751 (816) (751) (1,636) 7,690 

(DEFICIT) 

FOR THE YEAR 

* Details relating to assets by function/activity were not readily available at balance date. 

** Total income and expenditure exceed amounts reflected as they include internal charges. 

NOTE 40 

(cont.) 



The Infrastructure Services Group is responsible for protecting and enhancing and developing the Council’s social 

and physical environment. The broad objective will be achieved through planning, co-ordination and delivery of a 

diverse range of high quality, cost-efficient community and environmental services which are responsive to the needs 

of residents and other service users. 

The area comprises: 

Infrastructure Development 

Infrastructure Maintenance 

Emergency Risk Co-ordination 

Local Laws Co-ordination 

Leisure & Community Services 

The Leisure & Community Services Group provides arts, sport and major leisure facilities, ongoing major leisure facility 

contracts, broad range of Health and Human Services for children, young people, famalies and older adult, and 

promotion of health and human services. 


Home Care Services 

Youth Services 

Aged Care 

Family Day Care 

Children’s Services 

Community Support 

Libraries 

Leisure Services 

Arts & Cultural Services 

Community Halls 

Maternal & Child Health 

Pre-schools 

Environmental Health




NOTE 40 

(cont.) 


Environment and Planning Services 

The Environment and Planning Services Group promotes and enhances environmental sustainability and community 

wellbeing through funding programs and services, policy and strategic development, advocacy, service provision, 

community partnerships, regulatory activity and the management of council environmental assets and property. 


Environment & Planning Services which includes: 

Planning & Building Services 

Environment & Strategic Planning 


The Corporate Services Group is responsible for the effective and efficient operations and outcomes of Council’s 

financial, technology, corporate and governance services. 


Information Technology 

Finance 

Governance 

Organisational Development & Risk 

Communications 

Executive Services 


Executive Management 

Council Support 

Economic Development & Major Projects 

NOTE 41 

Financial ratios (performance indicators) 

2012 2012 2011 2011 2010 2010 

$’000 % $’000 % $’000 % 

(a) Debt servicing ratio 

To identify the capacity of Council to service its outstanding debt. 

Debt servicing costs 994 = 1.4% 746 = 0.9% 834 = 1.2% 

Total revenue 71,659 78,845 69,120 

Debt servicing costs refer to the payment of interest on loan borrowings, finance lease, and bank overdraft. The ratio 

expresses the amount of interest paid as a percentage of Council’s total revenue. 

(b) Debt commitment ratio 

To identify Council’s debt redemption strategy. 

Debt servicing & redemption costs 2,190 = 4.8% 1,875 = 4.4% 1,826 = 4.6% 

Rates revenue 45,224 42,492 39,579 

The strategy involves the payment of loan principal and interest, finance lease principal and interest. 

The ratio expresses the percentage of rate revenue utilised to pay interest and redeem debt principal.




NOTE 41 Financial ratios (performance indicators) 

(cont.) 2012 2012 2011 2011 2010 2010 

$’000 % $’000 % $’000 % 

(c) Revenue ratio 

To identify Council’s dependence on non-rate income. 

Rates revenue 45,224 = 63.1% 42,492 = 53.9% 39,579 = 57.3% 

Total revenue 71,659 78,845 69,120 

The level of Council’s reliance on rate revenue is determined by assessing rate revenue as a proportion of the total 

revenue of Council. Total Revenue includes Gifted assets and Previously non recognised assets as income in addition 

to the normal operating activities. 

(d) Debt Exposure Ratio 

To identify Council’s exposure to debt. 

Total indebtedness 41,910 = 13.5% 34,017 = 13.4% 29,108 = 11.8% 

Total realisable assets 311,571 253,058 247,161 

For the purposes of the calculation of financial ratios, realisable assets are those assets which can be sold and which 

are not subject to any restriction on realisation or use. Any liability represented by a restricted asset (Note 29) is 

excluded from total indebtedness. 

The following assets are excluded from total assets when calculating Council’s realisable assets: land and buildings 

on Crown land; restricted assets; heritage assets; total infrastructure assets; and Council’s investment in associate. 

This ratio enables assessment of Council’s solvency and exposure to debt. Total indebtedness refers to the total 

liabilities of Council. Total liabilities are compared to total realisable assets which are all Council assets not subject 

to any restriction and are able to be realised. The ratio expresses the multiple of total liabilities for each dollar of 

realisable assets. 

(e) Working Capital Ratio 

To assess Council’s ability to meet current commitments. 

Times Times Times 

Current assets 31,611 = 1.6 32,261 = 2.9 26,544 = 2.4 

Current liabilities 20,041 10,975 10,879 

The ratio expresses the level of current assets the Council has available to meet its current liabilities. 

(f) Adjusted Working Capital Ratio 

To asses Council’s ability to meet current commitments. 

Times Times Times 

Current assets 31,611 = 1.9 32,261 = 3.0 26,544 = 3.2 

Current liabilities 16,701 10,631 8,284 

The ratio expresses the level of current assets the Council has available to meet its current liabilities. 

Current liabilities have been reduced to reflect the long service leave that is shown as a current liability because 

Council does not have an unconditional right to defer settlement of the liability for at least twelve months after the 

reporting date, but is not likely to fall due within 12 months after the end of the period.





Note $000 $000 

NOTE 42 

Capital expenditure 

Capital expenditure areas 

Roads 21 919 144 

Kerb and Channel 21 381 – 

Footpaths/Bike Paths 21 170 – 

Drainage 21 196 240 

Bridges 21 176 – 

Other Infrastructure 21 107 601 

Land 21 1,984 676 

Land Improvements 21 – 209 

Buildings 21 6,956 1,274 

Plant, machinery & vehicles 21 979 1,468 

Furniture, equipment & computers 21 1,023 37 

Artworks 21 7 8 

Playgrounds 21 – 137 

Carry forward projects from prior years 21 4,653 12,798 

Total capital works 17,551 17,592 


Renewal of infrastructure 1,773 985 

Upgrade of infrastructure 176 – 

New land 1,984 676 

New land improvements – 209 

Renewal of buildings 6,956 1,274 

New plant, machinery & vehicles 979 1,468 

New furniture, equipment & computers 1,023 37 

New artworks 7 8 

Renewal of Playgrounds – 137 

Carry forward projects from prior years 4,653 12,798 


Property, plant and equipment, infrastructure movement 


Asset revaluation movement 26(a) 37,498 -1,437 

Depreciation/amortisation 12 -7,929 -7,672 

Written down value of assets sold 21 -3,946 -1,530 

Gifted infrastructure/artwork 6 1,072 112 

Restoration costs / land identified for resale 23(b) – – 

Net movement in property, plant and equipment, infrastructure 44,246 7,065 

(a) Renewal 

Expenditure on an existing asset which returns the service potential or the life of the asset up to that which it had 

originally. It is periodically required expenditure, relatively large (material) in value compared with the value of the 

components or sub-components of the asset being renewed. As it reinstates existing service potential, it has no impact 

on revenue, but may reduce future operating and maintenance expenditure if completed at the optimum time. 

(b) Upgrade 

expenditure which enhances an existing asset to provide a higher level of service or expenditure that will increase 

the life of the asset beyond that which it had originally. Upgrade expenditure is discretional and often does 

not result in additional revenue unless direct user charges apply. It will increase operating and maintenance 

expenditure in the future because of the increase in the council’s asset base.




NOTE 42 

(cont.) 

Capital expenditure 

(c) Expansion 

Expenditure which extends an existing asset, at the same standard as is currently enjoyed by residents, to a new 

group of users. It is discretional expenditure which increases future operating and maintenance costs, because it 

increases council’s asset base, but may be associated with additional revenue from the new user group. 

Note 43 

Pending Accounting Standards 

The following Australian Accounting Standards have been issued or amended but are not yet effective. 

They have not been adopted in preparation of the financial statements at reporting date. 

Standard / Interpretation 

Summary 

Applicable 

period 

Impact on financial 

statements 

AASB 9: Financial 

Instruments and AASB 

20010–11: Amendments 

to Australian Accounting 

Standards arising from 

AASB 9 [AASB 1, 3, 4, 5, 

7, 101, 102, 108, 112, 118, 

121, 127, 128, 131, 132, 

136, 139, 1023 & 1038 and 

Interpretations 10 & 12] 

These standards are applicable retrospectively 

and amend the classification and measurement of 

financial assets. Council has not yet determined the 

potential impact on the financial statements. 

Specific changes include: 

* simplifying the classifications of financial assets 

into those carried at amortised cost and those 

carried at fair value; 

* removing the tainting rules associated with heldto-maturity 

assets; 

* simplifying the requirements for embedded 

derivatives; 

* removing the requirements to separate and fair 

value embedded derivatives for financial assets 

carried at amortised cost; 

* allowing an irrevocable election on initial 

recognition to present gains and losses on 

investments in equity instruments that are not 

held for trading in other comprehensive income. 

Dividends in respect of these investments that are 

a return on investment can be recognised in profit 

or loss and there is no impairment or recycling on 

disposal of the instrument; and 

* reclassifying financial assets where there is a 

change in an entity’s business model as they are 

initially classified based on: 

a. the objective of the entity’s business model for 

managing the financial assets; and 

b. the characteristics of the contractual cash flows. 

Applicable 

for annual 

reporting periods 

commencing 

on or after 

1 January 2013. 

These changes are 

expected to provide 

some simplification in 

the accounting for and 

disclosure of financial 

instruments 

AASB 2011-3 Amendments 

to Australian Accounting 

Standards – Orderly 

Adoption of Changes to 

the ABS GFS Manual and 

Related Amendments 

These standards are aimed at limiting certain 

recognition and measurement options to align with 

GFS, and supplemented by additional disclosures. 

Applicable 

for annual 


commencing on 

or after 1 July 

2011. 

These amendments are 

not expected to impact 

Council 

Key Characteristics of the 

Public Sector with Potential 

implications for Financial 

Reporting 

These standards detail with numerous non-urgent 

but necessary changes to accounting standards 

arising from the IASB’s annual improvements 

project. 

Applicable 

for annual 


commencing 

on or after 

1 January 2011. 



Council




NOTE 43 

(cont.) 

Pending Accounting Standards 

Standard / Interpretation 

Summary 

Applicable 

period 

Impact on financial 

statements 

Amendments to Australian 

Accounting Standards 

– Financial Instruments: 

Disclosures, Recognition 

and Measurement [AASB 

7, 139] 

These standards detail the proposed changes 

to be made to the recognition, disclosure and 

measurement of impairment of financial instruments. 

Applicable 

for annual 


commencing on 

or after 1 July 

2011 but before 

1 July 2012. 




AASB 2010-9: 


Accounting Standards – 

Additional Exemptions for 

First-time Adopters 

[AASB 1] 

These amendments specify requirements for 

entities using the full cost method in place of the 

retrospective application of Australian Accounting 

Standards for oil and gas assets, and exempt 

entities with existing leasing contracts from 

reassessing the classification of those contracts 

in accordance with Interpretation 4 when the 

application of their previous accounting policies 

would have given the same outcome. 

Applicable 

for annual 


commencing 

on or after 

1 January 2011. 




AASB 2010-10: 


Accounting Standards – 

Classification of Rights 

Issues [AASB 132] 

These amendments clarify that rights, options or 

warrants to acquire a fixed number of an entity’s 

own equity instrument for a fixed amount in any 

currency are equity instruments if the entity offers 

the rights, options or warrants pro-rata to all existing 

owners of the same class of its own non derivative 

equity instruments. 

Applicable 

for annual 


commencing 

on or after 

1 February 2011. 



Council


Certification of the Financial Report 

In my opinion, the accompanying financial statements have been prepared in accordance with the Local Government Act 1989, the 

Local Government Regulations 2001, the Local Government (Finance Reporting) Regulations 2004, Australian Accounting Standards, 

and other mandatory professional reporting requirements. 

Principal Accounting Officer 

Mark Spaziani CPA 

GREENSBOROUGH 


In our opinion, the accompanying financial report presents fairly the financial transactions of the Shire of Nillumbik for the year ended 30 

June 2012 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 report to be 

misleading or inaccurate. 

On 28 August 2012 we were authorised by the Council to certify the financial report in its final form on behalf of the Council. 





Ken King 





GREENSBOROUGH

Auditor General’s Report 

on the Financial Report and Standard Statements 




on the Financial Report and Standard Statements 

(cont.)



Introduction 

The Local Government Act 1989 (Section 132) requires the Council to prepare a Performance Statement. This statement outlines our 

performance of Key Strategic Activities against the targets and measures set out in the Annual Budget for the year ended 30 June 2012. 

The use of performance indicators by Local Government is a step towards achieving: 

- an improved capacity to objectively measure council performance. 

- better informed local communities. 

Key Strategic Activities reported in the 2011/2012 Budget 

Goal/Strategy: Our People and Communities 

Key Strategic Activity Measure 2011-2012 Target Outcome Comment 

Conduct of fire modelling 

to identify high risk ignition 

locations in order to develop 

fire prevention plans 

Date of report to Council on 

outcome of fire modelling 

31-Dec-11 

Achieved 

Reported to Council meeting 

20 December 2011 

Preparation of St Andrews 

master plan 

Date of Council resolution for 

approval of plan 

30-Jun-12 

Achieved 



Construction of Diamond 

Creek Multi-Purpose 

Stadium 

Date of certification of 

project completion for final 

acquittal of project grants 

31-Dec-11 

Achieved 

Practical completion achieved 

on 19 December 2011 

Goal/Strategy: Our Environment 


Processing of planning 

applications in less than 

60 days 

Number of months when % 

of applications determined in 

less than 60 days is 60% or 

higher (as per monthly report 

to Council) 

30-Jun-12 

Achieved 

Achieved for all 12 months 

Diversion of waste from 

landfill 

Recyclable/recoverable 

material collected as a % of 

total kerbside waste 

65% 

Not achieved 

35.4% of total waste diverted 

from landfill in 2011-12. Green 

waste is being separated at 

kerbside collection – if recycled 

this would provide 69% diversion 

from landfill, however regional 

green waste recycling facility will 

not be available until early 2013. 

Completion of Civic Drive 

Concept Development Plan 


approval of plan 

31-Dec-11 

Achieved 


20 December 2011 

Preparation of Recreation 

Trails Strategy 

Date of Council resolution to 

adopt the strategy 

31-Dec-11 

Achieved 


20 December 2011



(cont.) 

Goal/Strategy: Our Economy 


Preparation of Parking 

Precinct Plan 

Date of Council resolution 

to approve Eltham MAC 

Parking Precinct Plan 

30-Jun-12 

Achieved 



Implementation of 

Economic Development 

Strategy 

Percentage of Year 1 actions 

commenced prior to 30 

June 2012 (as per Councilapproved 

priority action list) 

100% 

Achieved 

100% of actions commenced 

prior to 30 June 2012. 

Goal/Strategy: Our Council 


Preparation of 

Community Vision 


endorsement of Community 

Vision document 

30-Jun-12 

Achieved 



Completion of Civic Centre 

upgrade project 

Date of certification of 

project completion for final 

acquittal of project grant 

30-Jun-12 

Achieved 

Completed 18/05/2012 

Preparation of Council Plan, 

Budget and Annual Report 

Percentage of these matters 

completed by Council by 

statutory due dates in Local 

Government Act. 

100% 

Achieved 

Council Plan to Council 

29 May 2012. 

Budget to Council 

26 June 2012. 

Annual Report to Council 

25 October 2011.


Council Approval of the Performance Statement 

In our opinion, the accompanying Performance Statement of Nillumbik Shire Council in respect of the financial year ended 30 June 

2012, is presented fairly in accordance with the Local Government Act 1989. 

The statement outlines the performance targets and measures set out in relation to the achievement of the business plan in respect of 

that year described in Council’s Corporate Plan and describes the extent to which the business plan was met in that year 

As at the time of signing, we are not aware of any circumstances which would render any particular in the statement to be misleading 

or inaccurate. 

We were authorised by the Council on 28 August 2012 to certify the Performance Statement in its final form on behalf of the Council 





Ken King 





GREENSBOROUGH



on the Performance Statement


on the Performance Statement 

(cont.) 



Civic Drive, Greensborough 

PO Box 476, Greensborough, VIC 3088 

Telephone 9433 3111 Facsimile 9433 3777 

Website www.nillumbik.vic.gov.au 

Email nillumbik@nillumbik.vic.gov.au 

Printed in Nillumbik on 

Australian-made recycled paper.

2011-2012 - Nillumbik Shire Council

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