City of Greater Bendigo Annual Budget 2014/2015

City of Greater Bendigo 

Annual Budget 2014/2015 

Enhancing our liveability

Main cover image: 

The Flanagan-Smith family enjoy the extended Back Creek-Spring Gully shared path. 

Sub images: 

1. Bendigo Railway Station. 

2. Fun Loong’s first birthday celebrations in Hargreaves Mall. 

3. Mitchell Street redevelopment works.

ADDENDUM 

This addendum should be read in conjunction with the budget initialed by the Mayor for 

identification. 

1. Budget Submissions 

On July 30, 2014, in adopting the 2014/15 Budget, Council resolved to make the following changes: 

 

 

Allocate additional funding of $16,820 to bring the former Marong Pre-school facility up to 

relevant standards to use as a Marong Community Hub. These funds will increase the 

allocation of Capital works in the Buildings class. 

Allocate additional funding of $21,000 to enable the progression of the Woodvale Recreation 

Reserve Master Plan. These funds will increase the allocation of Capital works in the Buildings 

class 

Note: Budget document pages affected: all financial statements are impacted (net impact is 

immaterial). 

i

TABLE OF CONTENTS 

Page 

Introduction from the Mayor, Cr Barry Lyons 1 

Chief Executive Officer’s Summary 2 

Budget Processes 6 

1. Linkage to the Council Plan 7 

2. Services, Initiatives and Service Performance Indicators 10 

3. Budget Influences 22 

4. Analysis of Operating Budget 25 

5. Analysis of Budgeted Cash Position 30 

6. Analysis of Capital Budget 33 

7. Analysis of Budgeted Financial Position 37 

8. Strategic Resource Plan and Financial Performance Indicators 40 

9. Rating Information 45 

10. Other Strategies 50 

Appendix A - Budgeted Statements 53 

Appendix B – Rates and Charges 60 

Appendix C - Capital Works Program 72 

Appendix D - Maps 84 

Appendix E – Capital Evaluation Framework 87 

Appendix F - Glossary of Terms 90 

ii

Introduction from the Mayor, Cr Barry Lyons 

The Budget for 2014/2015 continues to deliver programs and projects that will help to fulfil 

Council’s vision of working together to be the most liveable regional city in Australia. 

Revenue from rates, fees and user charges, together with Government grants and other 

contributions, will enable us to deliver an ambitious $62.2 million capital and major works program, 

while investing $151.5 million in service delivery through the City’s operating budget. 

Council’s Capital Works program includes completing the Ulumbarra Theatre, the redevelopment of 

Canterbury Park and further progress planning for the Greater Bendigo Indoor Aquatic Leisure and 

Wellbeing Centre, the Bendigo Airport redevelopment and Bendigo Botanic Gardens. 

There is continued investment in ‘grassroots’ infrastructure, including $21.6 million for roads, 

bridges, drainage and footpaths and funds for existing assets to make sure they are well maintained 

and can meet the needs of our growing city. This includes $6.9 million for building improvements; 

$2.6 million for recreation properties and structures; and $925,000 towards conserving the City’s 

heritage properties. 

Council will also provide $715,000 towards a partnership project with the Federal Government and 

15 other local councils to upgrade 23,000 streetlights in north, west and central Victoria with energy 

efficient technology. This initiative is expected to save the City in the order of $19.4 million over the 

next 20 years. 

The operating Budget again demonstrates that service delivery is our core business and that the City 

provides services across a wide spectrum. In Community Services, we have allocated $15.5 million, 

including $9.3 million for Aged and Disability Services, $2.4 million for Maternal and Children’s 

Health, $4.3 million for Child Care and $5.4 million to encourage an Active and Healthy Community. 

There is also $23.6 million for the maintenance and development of infrastructure assets such as 

roads, footpaths and drains and our magnificent parks, gardens and natural reserves. 

Waste management remains one of the City’s most expensive services with around 90,000 bins to 

be emptied from kerbsides three-and-a-half million times in 2014/2015. Ongoing increases in the 

EPA levy add $3.5 million to these costs and result in higher landfill charges for residents. The 

Budget includes funding to start rolling out of 360 litre recycling bins, giving Greater Bendigo the 

option of being able to recycle more of their domestic waste and help meet targets in Council’s 

recently adopted Waste and Resource Management Strategy. For the first time, public place 

recycling bins will be located in high profile areas. 

To help fund Capital Works and services rates will increase by 6.0%, which is in line with Council’s 

10-year financial plan. The Municipal Charge will be discontinued. 

The Budget is prudent and was developed using a more efficient and transparent process informed 

by the Independent Review of the City of Greater Bendigo. 

It gives me great pleasure to present the Budget to the community of Greater Bendigo. I am 

confident that it will help achieve Council’s vision of being Australia’s most liveable regional city. 

Cr Barry Lyons 

Mayor 

Adopted Greater Bendigo City Council Budget 2014/2015 1

Chief Executive Officer’s Summary 

Council has prepared a Budget for the 2014/2015 financial year which seeks to balance the demand 

for services and infrastructure with the community’s capacity to pay. Key budget information is 

provided below about the rate increase, operating result, cash and investments, capital works, 

financial sustainability, financial position, and expenditure allocations of the Council. 

Any columns in graphs below labelled A2012/13 reflect actual figures for 2012/13, F2013/14 reflect 

forecast figures for 2013/14, A2013/14 reflects actual figures for 2013/14, columns labelled B2014/15 

reflect budget figures for 2014/15 and columns labelled SRP reflect Strategic Resource Plan figures 

for the financial years 2015/16 – 2017/18. 

1. Rates 

The general rates increase of 6.0% for the 2014/2015 year, will raise total rates and charges of 

$93.39 million, including $12.2 million from garbage and recycling charges, and $1.93 million 

generated from supplementary rates. 

2. Income Statement Result 

The budgeted operating result for the 2014/2015 year is an operating surplus of $12.07 million, 

which is an increase of $3.21 million over the forecast result for 2013/2014. The increase is due 

mainly to the net effect of increases in the cost of service delivery, additional contract payments as a 

result of major project expenditure (refer section 4.3.2), increased depreciation, and the timing of 

the Victorian Grants Commission funding which is based on receipt of two quarterly payments in 

2013/2014, which increases the number of quarters budgeted to be received in 2014/2015 to the full 

four quarters. 

Greater Bendigo City Council Budget – 2014/2015 2

3. Cash and Investments 

Cash and investments are expected to decrease by $3.03 million during the year to $29.54 million as 

at 30 June 2015. This reflects Council's strategy of using excess cash and investments to enhance 

service delivery and enable the renewal and upgrade of existing infrastructure and the creation of 

new infrastructure. 

4. Capital Works 

The budgeted Capital Works program for the 2014/2015 year is $42.69 million. In addition to the 

budgeted Capital Works program, some projects will be carried forward for completion from the 

2013/2014 year; however the carried forward projects are funded from the 2013/2014 budget. 

Of the $42.69 million in Capital funding required, $26.79 million will come from Working 

Capital/Council operations, $9.11 million from external grants, contributions and asset sales, $4 

million from loan borrowings and the balance from cash and investments. 

The capital expenditure program has been prioritised based on an agreed evaluation criteria. (Note: 

In addition to the Capital Works, Council will undertake Major Works which equates to $19.55 

million total expenditure, substantially funded from Government Grants and Council Reserves. 

Major Works include the completion of Ulumbarra Theatre, and Lighting the Region Projects, and 

are assets not owned by COGB). 


5. Financial Position 

The financial position is expected to improve with net assets (net worth) to increase by $115 million 

to $1.29 billion although net current assets (working capital) will reduce by $0.69 million to $11.64 

million as at 30 June 2015. This is mainly due to the use of cash reserves to fund projects included in 

the Capital Works program. 

6. Financial Sustainability 

A high level Strategic Resource Plan for the years 2014/15 to 2017/18 has been developed to assist 

Council in adopting a budget within a longer term prudent financial framework. The key objective of 

the plan is financial sustainability in the medium to long term, while achieving the Council’s strategic 

objectives as specified in the Council Plan. The plan projects that Council’s underlying result, which 

is a measure of financial sustainability, shows an increasing surplus over the four year period. 

The underlying budget deficit expected to occur in 2014/2015 is due to the timing of financial 

transactions, these being the impact of payments in relation to the Bendigo Community Theatre, and 

Lighting the Region Project (refer section 4.3.2). If the timing of these transactions was adjusted, an 

underlying surplus would be budgeted to occur in 2014/2015. 


7. Council Expenditure Allocations 

The above chart provides an indication of how Council allocates its expenditure across the core 

services that it delivers. 

This budget has been developed through a rigorous process of preparation and review. More 

detailed budget information is available throughout this document. 

Craig Niemann 

Chief Executive Officer 


Budget Processes 

This section lists the budget processes to be undertaken in order to adopt the Budget in accordance 

with the Local Government Act 1989 (the Act) and Local Government (Planning and Reporting) Regulations 

2014 (the Regulations). 

Under the Act, Council is required to prepare and adopt an annual budget for each financial year. 

The budget is required to include certain information about the rates and charges that Council 

intends to levy as well as a range of other information required by the Regulations which support 

the Act. 

The 2014/2015 budget is for the financial year 1 July 2014 to 30 June 2015 and is prepared in 

accordance with the Act and Regulations. The budget includes financial statements, being a 

budgeted Income Statement, Balance Sheet, Cash Flow Statement, Capital Work Statement, 

Statement of Changes in Equity and Statement of Human Resources. These statements have been 

prepared for the year ended 30 June 2015 in accordance with the Act and Regulations, and are 

consistent with the annual financial statements which are prepared in accordance with Accounting 

Standards. The budget also includes detailed information about the rates and charges to be levied, 

the Capital Works program to be undertaken, the human resources required, and other financial 

information, which Council requires in order to make an informed decision about the adoption of 

the budget. 

The preparation of the budget began with Officers preparing the operating and capital components 

of the annual budget between November and February. A draft consolidated budget was considered 

by Councillors at briefings in April. The proposed budget is submitted to Council in May for 

approval in principle, Council is then required to give public notice that it intends to adopt a budget. 

It must give 28 days notice of its intention to adopt the proposed budget and make the budget 

available for inspection. Any interested person has a right to make a submission on any proposal 

contained in the budget and any submission must be considered before adoption of the budget by 

Council. 

Council undertakes media briefings, promotion and displays copies of the proposed budget in the 

local media and on the City of Greater Bendigo's website. Hard copies are also available at Council 

offices. The final step is for Council to adopt the budget after receiving and considering any 

submissions from interested parties. The budget is required to be adopted and a copy submitted to 

the Minister by 31 August each year. The key dates for the budget process are summarised below: 

Budget process 

Timing 

1. Officers prepare operating and capital budgets Nov/Mar 

2. Council considers draft budget April 

3. Proposed budget submitted to Council for approval 28 May 

4. Public notice advising of Council’s intention to adopt the budget 31 May 

5. Budget available for public inspection and comment 

31 May to 

27 June 

6. Submissions period closes (28 days) 27 June 

7. Submissions considered by a Committee of Council 2 July 

8. Budget and submissions presented to Council for adoption 30 July 

9. Copy of adopted budget submitted to the Minister 1 August 


1. Linkage to the Council Plan 

This section describes how the Annual Budget links to the achievement of the Council Plan within an 

overall planning framework. This framework guides the Council in identifying community needs and 

aspirations over the long term (Greater Bendigo 2036), medium term (Council Plan, Strategic 

Resources Plan) and short term (Annual Actions and Budget) and then holding itself accountable 

(Annual Report and Audited Statements). 

1.1 Strategic Planning Framework 

The Strategic Resource Plan, included in the Council Plan, is a rolling four year plan that provides a 

summary of the financial and non-financial impacts of the objectives and strategies and determines 

the sustainability of these objectives and strategies. The Annual Budget is developed and framed 

within the Strategic Resource Plan, taking into account the activities and initiatives which contribute 

to achieving the Council’s strategic objectives specified in the Council Plan. The diagram below 

depicts the strategic planning framework of Council. 

ENGAGEMENT 

ACTION 

PLANNING 

RESOURCE 

PLANNING 

REPORTING 

Community Plans 

- Greater Bendigo 2036 

- Small Town and 

Neighbourhood Plans 

Community 

Engagement 

Framework 

1. Deliberate 

Consultation Activities 

Council Plan 

Long Term 

Financial and 

Workforce Plan 

(Strategic Resource 

Plan) 

Annual Report to the 

Community 

2. Communications and 

Media 

3. Customer Service 

Requests 

COGB Strategies 

and Plans 

Report to councillors 

on achievements in 

strategies 

4. Small Towns 

5. Individual Contacts 

with Staff/Councillors 

Strategies 

Council Plan 

Annual Actions 

Council Budget 

including Annual 

Capital Expenditure 

Report to 

Councillors on 

progress against 

Annual Actions and 

Budget 

Service Plans 

Unit Budget 

Progress report to 

Director 

Note: Lighter shades 

are for "internal only" 

documents. 

Individual Work 

Plans 

Progress report to 

Supervisor 

Council's Planning and Reporting framework is underpinned by Federal, State and Regional Strategic Plans, Policies and 

Council's Planning and Reporting framework is underpinned by Federal, State and Regional Strategic Plans, Policies and Legislation 

Legislation. 

Note: lighter shades are for "internal only" documents 


The timing of each component of the planning framework is critical to the successful achievement of 

the planned outcomes. A new Council Plan, including the Strategic Resource Plan, is required to be 

completed by 30 June following a general election, and is reviewed each year in advance of the 

Annual Budget process. 

1.2 Vision and Values 

Council Vision 

Working together to be Australia’s most liveable regional city. 

Council Values 

Council wants the community to continue to have reason to be proud of the city and will do this 

through: 

Transparency - Information about Council decisions is readily available and easily 

understood; 

Efficiency and effectiveness - Council provides services based on evidence of need and 

demonstrates continuous improvement in the delivery of services; 

Inclusion and consultation - Council uses a range of engagement strategies to ensure 

community members can understand and take part in discussion that informs the 

development of new strategies and actions; 

Clear decisive and consistent planning - In a rapidly growing municipality, Council undertakes 

to plan effectively for our long-term future; 

Respect for community priorities and needs - Council will advocate for improved services 

for community members and will consider community impact and feedback the decisions it 

makes. 

Staff Organisational Values 

Our core values are aspiring to quality and achievement in everything we do by: 

Embracing challenges 

Encouraging and respecting each other 

Nurturing creativity and diversity 

to make a difference in our community. 


1.3 Themes and Strategic Objectives 

The Council delivers services and initiatives under service categories or functional areas. Each 

contributes to the achievement of one of the five themes and the strategic objectives as set out in 

the Council Plan for the 2013-17 years and shown in the following table. 

Theme 

Strategic Objective 

1. Leadership 

and Good 

Governance 

2. Planning for 

Growth 

3. Presentation 

and vibe of 

our city 

Council demonstrates leadership in its decisions and uses good governance 

principles to guide decision-making. 

Advocacy about our priorities is effective. 

Community members take an active part in democratic engagement. 

Greater Bendigo people receive responsive, accessible and inclusive customer 

service. 

Staff members are enabled to work effectively. 

Service delivery is of excellent standard. 

Greater Bendigo delivers major projects while maintaining its unique character, 

accommodating a growing population and diversifying the economy. 

Greater Bendigo residents and communities are connected with accessible 

transport options and access to essential built and communications 

infrastructure. 

Housing options meet current and future community expectations and needs. 

Public infrastructure across Greater Bendigo facilitates positive wellbeing and 

good quality of life. 

Greater Bendigo is a place of great places that celebrates people's active artistic, 

cultural, sporting and social lives. 

Greater Bendigo is a community that values its heritage and supports arts and 

cultural experiences. 

People are enabled to be the healthiest they can be. 

Residents have access to environments and settings that support safe and healthy 

living. 

The Greater Bendigo region is a drawcard for visitors. 

Greater Bendigo has inclusive and equitable communities where people feel 

welcome and connected to others. 

4. Productivity Greater Bendigo has a vibrant and diverse economy that grows jobs and enables 

good living standards. 

Support for innovation and creativity builds economic sustainability. 

Greater Bendigo enables lifelong learning opportunities. 

5. Sustainability Resources and assets are planned for, and managed wisely for long-term viability 

and to reduce the environmental footprint. 

Greater Bendigo's natural heritage is restored and protected for the future. 


2. Services, Initiatives and Service Performance Indicators 

This section provides a description of the services and initiatives to be funded in the Budget for the 

2014/2015 year and how these will contribute to achieving the strategic objectives specified in the 

Council Plan as set out in Section 1. It also includes a number of initiatives, major initiatives and 

service performance outcome indicators. The Strategic Resource Plan (SRP) is part of, and prepared 

in conjunction with, the Council Plan. The relationship between these components of the Budget 

and the Council Plan, along with the link to reporting in the Annual Report, is shown below. 

In order to demonstrate full cost of Council services, the City of Greater Bendigo allocates the cost 

of a number of internal support areas to other service units of Council. These include Finance, 

Information Management, People and Performance and Customer Service. 

2.1 Theme 1 – Leadership and Good Governance 

Council demonstrates leadership to assure the community that there is capacity and flexibility to 

plan for and manage emerging challenges, as well as responding to immediate needs and concerns. 

Good governance is evident in transparent and well-informed decision-making for the long term, 

sound management of resources and diverse and effective engagement with community members. 

Services 

Service Unit 

Executive 

Services 

Organisation 

Support 

Directorate 

Library Services 

Rating and 

Valuation 

Services 

Information 

Management 

Description of services provided 

The Executive Services Unit provides administrative and executive 

support to Council, the Mayor, the CEO and the Executive 

Management Team. The Unit ensures that systems and processes 

are in place to provide for good governance. Media, 

communications, community relations, government relations and 

legal services are supported through activities of the Unit. 

The Organisation Support Directorate enables, strengthens and 

enhances the organisation’s people, culture, systems, processes 

and finances to ensure sound corporate decision-making, the 

achievement of the organisation’s strategic objectives and the 

delivery of high quality services and programs. 

City of Greater Bendigo is one of the four member municipalities 

of the North Central Goldfields Library Corporation which 

provides a public library service to four sites throughout the 

municipality in Bendigo, Kangaroo Flat, Eaglehawk and Heathcote 

along with the mobile library. 

The Rating and Valuation Services Unit values properties for rating 

purposes, annually levies and collects rates and charges, as well as 

the State Government Fire Services Property Levy. 

The Information Management Unit is responsible for records 

management, corporate servers, computers/laptops and the 

corporate network which includes over 20 sites, mobile 

networking, telephone systems, mobile phones, Freedom of 

Information requests and privacy matters. 

(Expenditure) 

Revenue 

Net Cost 

$'000 

(3,077) 

0 

(3,077) 

(417) 

0 

(417) 

(2,639) 

0 

(2,639) 

(2,522) 

1,021 

(1,501) 

(3.447) 

*3,294 

(153) 

9 

(144) 


People and 

Performance 

Contracts and 

Project 

Coordination 

The People and Performance Unit supports the organisation to 

ensure it has the right people delivering the right outcomes. The 

Unit achieves its purpose through aligning the workforce 

availability, capability, and productivity to the organisation's 

strategy. 

The Contracts and Project Coordination Unit provides services, 

governance and capacity development to the organisation in the 

areas of tendering, contracts and project management. 

(3,295) 

*1,652 

(1,643) 

219 

(1,424) 

(630) 

1 

(629) 

Customer 

Support 

*Cost allocated across other units 

The Customer Support Unit is often the first point of contact for 

our customers. Committed to making a difference in our 

community, the Unit connects our customers to information, 

services, people and places. It is the "public face" of the Council 

as they interact with the community, and is also the thread that 

connects the internal organisation, assisting colleagues to respond 

to our community requests in a respectful and courteous way. 

(1,745) 

* 834 

(911) 

12 

(899) 

Initiatives 

Initiatives 

1) Employ internal graphic designer (1.00 FTE) to assist with publications reducing 

the need to outsource. 

Council 

Plan 

Reference 

2) Return the Greater Bendigo magazine to a quarterly publication. 1.4 

3) Increased administration support (0.60 FTE) to support Councillor’s increasing 

demands, requests and additional resources. 

4) Increase resources within the Contracts Unit (0.40 FTE) to undertake further 

improvements in project management. 

5) Develop future strategies for CoGB to reduce the burden of Defined Benefits 

liability, as per the Independent Review. 

6) Additional People and Performance staffing (1.00 FTE Temporary, 0.60 FTE 

Permanent) to implement actions arising from the Independent Review. 

7) Consulting time to manage numerous safety/risk projects to assist in fostering a 

proactive safety culture. 

8) Increase budget provision for administrative support to District Engagement 

meetings. 

Service Performance Outcome Indicators 

Service Indicator Performance Measure Computation 

1.6 

1.6 

1.6 

1.2 

1.5 

1.5 

1.6 

Governance Satisfaction 

Satisfaction with Council decisions 

(Community satisfaction rating out of 

100 with how Council has performed in 

making decisions in the interests of the 

community) 

Community satisfaction rating 

out of 100 with how Council 

has performed in making 

decisions in the interests of 

the community 

Libraries 

Participation Active library members 

(Percentage of the municipal population 

that are active library members) 

[Number of active library 

members / municipal 

population] x100 


2.2 Theme 2 – Planning for Growth 

During this term Council has made a strong commitment to complete significant planning work to 

develop detailed and long term plans around integrated transport and future residential needs. This 

encompasses projects that contribute to achieving the vision of Bendigo becoming the most liveable 

regional city in Australia, and covers development of infrastructure that differentiates the 

municipality as an affordable, comfortable, connected and safe place to live and provides for modern 

and future lifestyle and cultural choices. 

It is essential that Greater Bendigo plans for the future and presents compelling arguments to the 

State and Federal Governments for funding to deliver on the plans, especially major infrastructure 

items. The completion of a number of major projects, identified in previous planning work, is also a 

high priority. 

There are competing demands in community priorities and internal funding decisions in the desires 

to plan for growth, maintain the existing infrastructure to safe and acceptable standards, and meet 

increasing demand for social services and new infrastructure. 

These strategies ensure Greater Bendigo adapts to the needs of a growing and increasingly diverse 

population smoothly and positively. 

Services 

Service Unit 

Planning and 

Development 

Directorate 

Statutory 

Planning 

Strategy 

Major Projects 


The Planning and Development Directorate ensures a better 

quality of life for all members of the Greater Bendigo community 

by fostering sustainable development and enhancing public safety. 

The Statutory Planning Unit facilitates quality developments 

including buildings and subdivisions, while maintaining and 

protecting the municipality’s environmental assets and respecting 

residents/community rights and amenities. Many of the services 

delivered by the Statutory Planning Unit are in accordance with 

State Government legislation and local strategies and policies 

adopted by Council following intensive community consultation. 

The Strategy Unit facilitates and coordinates the development of 

strategies. The Unit’s integrated approach incorporates strategic 

land use planning, community and social planning, corporate, 

heritage and sustainable transport planning, and facilitating the 

renewal and implementation of the Greater Bendigo 2036 

Community Plan. 

The Major Projects Unit focusses on major projects that involve 

significant funding from external sources, significant stakeholder 

engagement and require detailed planning, design and delivery. 

The Unit contributes to the economic, cultural and social 

prosperity of our region by effectively delivering identified major 

projects, successfully co-operating and proactively developing the 

Bendigo Airport, and in doing so, continue to raise Greater 

Bendigo's profile as an exceptional place in which to live, work, 

invest and visit. 

(Expenditure) 

Revenue 

Net Cost 

$'000 

(371) 

0 

(371) 

(3,105) 

724 

(2,381) 

(1,873) 

0 

(1,873) 

(766) 

120 

(646) 


Initiatives 

Initiatives 

9) Employ Strategic Planner with GIS and Graphic Communication Skills (1.00 FTE). 

Convert consultancy costs to internal employment for more efficient result. 

10) Complete stage 2 of the White Hills and East Bendigo Heritage Study - Historical 

analysis and produce the heritage citation for the north eastern suburbs, due for 

completion in 2015/2016. 

11) Legal and Consultancy advice to assist with the preparation of Airport 

Amendment. 

Council 

Plan 

Reference 

1.6 

3.3 

2.1 



Statutory 

planning 

Decision 

making 

Council planning decisions upheld at 

VCAT 

(Percentage of planning application 

decisions subject to review by VCAT and 

that were not set aside) 

[Number of VCAT decisions 

that did not set aside 

Council’s decision in relation 

to a planning application / 

Number of VCAT decisions 

in relation to planning 

applications] x100 

2.3 Theme 3 – The Presentation and vibe of our city 

When people in Bendigo describe it as being very liveable, they use phrases such as it ‘looks good’, is 

easy to get around, it is safe, it is affordable, and there is good access to health and education, and 

services for people who need help. There are choices in activities, education, housing and 

entertainment, and sporting facilities and open spaces are well maintained. People still say ‘Hello’ in 

the street. 

These are important features of the community to strengthen as Greater Bendigo grows and 

changes. New initiatives will be developed on the basis of equity to meet gaps in existing services or 

provide better access to existing services for members of the public. Outcomes that specifically 

encourage physical activity and those that promote mental and physical wellbeing are valued. At the 

same time preservation and/or promotion of the municipality's physical and cultural heritage remain 

important criteria. 

Services 

Service Unit 

Bendigo Art 

Gallery 


The Bendigo Art Gallery exhibits artworks, oversees the 

acquisition of artwork, manages bequests, and encourages 

philanthropy for the institution. The Gallery has an art collection 

of national significance housed within a facility that meets 

international standards. 

(Expenditure) 

Revenue 

Net Cost 

$'000 

(4,619) 

2,579 

(2,040) 


The Capital, 

Ulumbarra, 

Bendigo Town 

Hall and Bendigo 

Exhibition 

Centre 

Community 

Wellbeing 

Directorate 

Community 

Services 

Community 

Partnerships 

Active and 

Healthy 

Communities 

Environmental 

Health 

The Capital provides performing arts and venue management 

services to the City of Greater Bendigo. The Unit provides a 

diverse program of performing arts, high quality co-ordination and 

management services for a range of venues and facilities, 

custodianship and interpretation of significant heritage buildings, 

and contributes to the economic development of the City through 

excellent facilities and programs. 

The Community Wellbeing Directorate comprises the functional 

areas of Community Services, Customer Support, Active and 

Healthy Communities and Community Partnerships. The 

Community Wellbeing Directorate will support the people in our 

community to live their lives fully and be active, creative, engaged 

and healthy. 

The Community Services Unit delivers a broad range of services 

for the early childhood target group and their families including 

health promotion, prevention, care, education and advocacy. It 

provides support to frail older people, people with disabilities and 

their carers, whose capacity for independent living is at risk, or 

who are at risk of premature or inappropriate admission to long 

term residential care. 

The Community Partnerships Unit has an overarching community 

engagement, social inclusion, building capacity and advocacy focus. 

The Unit encourages and supports active engagement in 

community and civic life, strengthens community resilience by 

building social capital, and supports the planning and development 

of accessible and inclusive community facilities, programs and 

services that are responsive to identified community need and 

aspirations. 

The Active and Healthy Communities Unit is a multi-disciplinary 

team for the planning, design, management, maintenance and 

creation of public access to sport and leisure opportunities for the 

residents of and visitors to Greater Bendigo. The Unit improves 

the health and wellbeing of residents in the Greater Bendigo 

region by encouraging and supporting healthy lifestyles in order to 

increase physical activity, fruit and vegetable consumption, and 

decrease smoking and harmful alcohol use. The Healthy 

Communities team connects with early year centres, primary and 

secondary schools, as well as medium to large scale businesses to 

assist in achieving and promoting healthy environments. 

The Environmental Health and Local Laws Unit keep the 

community safe through a variety of preventative and proactive 

actions and respond to issues raised by the community. The Unit 

improves the public health, wellbeing and safety of the community 

by reducing exposure to hazards associated with our surrounding 

environments through responsible and sustainable City 

development, protecting surrounds, setting standards for civic 

behavior and ensuring good business practices of registered 

premises and major events. 

(4,098) 

2,189 

(1,909) 

(463) 

0 

(463) 

(15,497) 

12,249 

(3,248) 

(4,187) 

1,544 

(2,643) 

(5,407) 

1,164 

(4,243) 

(2,130) 

1,088 

(1,042) 


Presentation 

and Works 

Bendigo 

Livestock 

Exchange 

Parks and 

Natural 

Reserves 

Engineering and 

Public Space 

Presentation and Works includes maintenance and development of 

sealed and unsealed roads, drains, concrete footpaths, kerb and 

channel, and bridges. It also includes traffic and pedestrian 

management, emergency response, supply of labour, plant and 

traffic management for community events. 

This unit also undertakes new civil construction projects for City 

of Greater Bendigo including roads, drainage, sporting fields and 

car parks, and undertakes civil works for other service authorities. 

The Bendigo Livestock Exchange provides for the efficient 

operation and management of weekly lamb/sheep and cattle sales, 

and fortnightly pig/calf sales. 

The Parks and Natural Reserves Unit manages a large portfolio of 

parks, gardens, reserves, sports fields and areas of open space for 

the City of Greater Bendigo. The diversity of these assets 

requires a skilled and committed team that is responsible for the 

implementation of a range of specialist park management, 

horticultural and environmental techniques and practices. 

The Engineering and Public Space Unit develops and delivers 

physical infrastructure to support a broad range of services to the 

community. This includes the development of Capital Works 

projects to provide renewal and new assets to meet the expanding 

population of Bendigo and increasing community expectations, and 

the strategic planning of infrastructure through asset management 

and development of strategic plans for asset groups. The Unit also 

provides support services across the organisation in areas of asset 

management and GIS. 

(17,422) 

7,691 

(9,731) 

(935) 

1,071 

136 

(9,485) 

163 

(9,322) 

(6,239) 

3,754 

(2,485) 

Initiatives 

Initiatives 

12) Employee a Senior Technical Officer (1.00 FTE) at the Bendigo Art Gallery, as a 

result of the Gallery redevelopment. 

13) Create new Full-time Temporary Position (1.00 FTE, for 36 months) as Business 

Development Manager, to ensure successful marketing and operations of 

Ulumbarra Theatre. 

14) Operations of the new Community Theatre. Cleaning, marketing, performances 

and all operations for 3-4 months. 

15) Create a Commercial use of Public Open Space Policy, and User Contribution 

for Facility Development Policy - within current resources. 

16) Design and develop a food 'hub' within the municipality making it easier for 

people to access fresh seasonal food for vulnerable communities. 

17) Undertake a pilot project with IGA supermarkets to support community 

initiatives to increase access to healthy food. 

18) Establish a food information portal - food information website to be hosted or 

linked to CoGB website. 

19) Implementation of Domestic Wastewater Management Plan as required by State 

Government legislation. 

20) Improving Access to Built Environment - project that will improve access to the 

physical environment for people living with a disability. 

Council 

Plan 

Reference 

3.2 

3.2 

3.2 

2.1 

3.5 

3.5 

3.5 

3.6 

1.3 


21) Support advertising of related community engagement activities, venue hire and 

catering for Rural Communities strategies. 

22) Develop a Reconciliation Plan to help strengthen and build positive relationships 

between Aboriginal Torres Strait Islander people and non-indigenous people. 

23) Increased footpath maintenance as a result of changes to Road Management Plan. 3.1 

24) Address issue of overgrowing vegetation along roads and blocked drains, by 

increasing current budget. 

25) Complete restructure of Presentation and Works Unit (1.00 FTE). 1.6 

26) Employ staff members (2.00 FTE) in place of contractors to provide traffic 

management. 

27) Additional staff (2.00 FTE) for the Arboriculture and Passive Reserve teams to 

assist with growth of facilities across the City. 

28) Additional funding to assist with tree maintenance. 3.1 

29) Stormwater quality works introduced as a trial for possible inclusion in future 

Capital Works. 

3.6 

3.7 

5.2 

1.6 

1.6 

5.1 



Home and 

Community 

Care 

Participation Participation in HACC service 

(Percentage of the municipal target 

population who receive a HACC 

service) 

[Number of people that 

received a HACC service / 

Municipal target population 

for HACC services] x100 

Home and 

Community 

Care 

Participation Participation in HACC service by CALD 

people 

(Percentage of the municipal target 

population in relation to CALD people 

who receive a HACC service) 

[Number of CALD people 

who receive a HACC service 

/ Municipal target population 

in relation to CALD people 

for HACC services] x100 

Maternal 

and Child 

Health 

Maternal 

and Child 

Health 

Aquatic 

Facilities 

Participation Participation in the MCH service 

(Percentage of children enrolled who 

participate in the MCH service) 

Participation Participation in MCH service by 

Aboriginal children 

(Percentage of Aboriginal children 

enrolled who participate in the MCH 

service) 

Utilisation 

Utilisation of aquatic facilities 

(Number of visits to aquatic facilities per 

head of municipal population) 

[Number of children who 

attend the MCH service at 

least once (in the year) / 

Number of children enrolled 

in the MCH service] x100 

[Number of Aboriginal 

children who attend the 

MCH service at least once (in 

the year) / Number of 

Aboriginal children enrolled 

in the MCH service] x100 

Number of visits to aquatic 

facilities / Municipal 

population 


Roads Satisfaction Satisfaction with sealed local roads 

(Community satisfaction rating out of 

100 with how Council has performed on 

the condition of sealed local roads) 

Food safety 

Animal 

Management 

Health and 

safety 

Health and 

safety 

Critical and major non-compliance 

notifications 

(Percentage of critical and major noncompliance 

notifications that are 

followed up by Council) 

Animal management prosecutions 

(Number of successful animal 

management prosecutions) 

Community satisfaction 

rating out of 100 with how 

Council has performed on 

the condition of sealed local 

roads. 

[Number of critical noncompliance 

notifications and 

major non-compliance 

notifications about a food 

premises followed up / 

Number of critical noncompliance 

notifications and 

major non-compliance 

notifications about food 

premises] x100 

Number of successful animal 

management prosecutions 

2.4 Theme 4 – Productivity 

Productivity is about encouraging innovation and diversity in education, commerce and industry. It is 

about responding to new economic opportunities, including making sure our local workforce is 

appropriately skilled. Council’s role involves supporting infrastructure projects that promote and 

enable investment, business opportunity and business security within the municipality. 

It is establishing the environment for investment, and making sure the infrastructure is in place to 

support economic activity. It involves creating the opportunity for all people to be actively 

employed. The focus is on the potential additional economic activity generated in the community, 

not a direct return on investment to the City of Greater Bendigo. 

Services 

Service Unit 

Economic 

Development 

City Futures 

Directorate 


The Economic Development Unit supports economic growth by 

business building, including existing business growth and the 

attraction of new industries. The Unit attracts and supports the 

provision of key infrastructure, supports initiatives that improve 

the attraction and retention of skilled workforce to meet the 

needs of Bendigo's diverse economy, strengthens existing business 

stakeholder engagement, and facilitates new investments in the 

region. 

The role of the City Futures Directorate is to contribute to the 

economic, cultural and social prosperity of our region by 

identifying and supporting investment opportunities, employment 

generation and development of major projects, and in so doing 

continue to raise Greater Bendigo’s profile as an exceptional place 

in which to live, work, invest and visit. Also includes funding of the 

Bendigo Trust. 

(Expenditure) 

Revenue 

Net Cost 

$'000 

(1,182) 

40 

(1,142) 

(1,125) 

165 

(960) 


Major Events 

Unit 

Tourism Unit 

The Major Events Unit retains, attracts and nurtures major events (2,040) 

that deliver social and economic benefit for Greater Bendigo, 

319 

particularly in the high priority areas of sport, arts and culture, (1,721) 

food and wine, agriculture, car clubs, music and business events. 

The Unit organises, manages and presents the annual Bendigo 

Easter Festival in conjunction with sponsors, community partners, 

volunteers, media and other interest groups. 

The Tourism Unit provides support and leadership to the Greater 

Bendigo and region tourism industry. With over 1,600 (mainly 

small) tourism businesses in the region, the role of the Tourism 

Unit is to work with the industry to promote Greater Bendigo as a 

visitor and events destination, and work with local businesses to 

co-operatively market the destination across Melbourne, Victoria, 

Nationally and at times Internationally. The Unit provides 

professional marketing services across the broad industry sector, 

delivers quality visitor services and works with the tourism 

industry to develop attractive visitor experiences. 

(3,206) 

1,107 

(2,099) 

Initiatives 

Initiatives 

30) Run workshops to assist business innovation within their businesses, conducted 

within current resource levels. 

31) Allow continuation of the Marong Business Park process through the Planning 

Scheme Amendment stage, to progress the Planning Panel. 

32) Small Business Support Program - Create a greater level of service for new and 

existing small businesses. 

33) City celebrates 100 year anniversary since first debutante ball held, in association 

with Variety Children Charity. 

Council 

Plan 

Reference 

34) To provide funds to assist centenary of ANZAC Day Commemoration. 2.1 

4.1 

2.1 

4.1 

3.3 



Economic 

Development 

Economic 

activity 

Change in number of businesses 

(Percentage change in the number of 

businesses with an ABN in the 

municipality) 

[Number of businesses with 

an ABN in the municipality at 

the end of the financial year 

less the number of 

businesses at the start of the 

financial year / Number of 

businesses with an ABN in 

the municipality at the start 

of the financial year] x100 


2.5 Theme 5 – Sustainability 

Sustainability means making good use of all our resources, so that the decisions made today do not 

limit the choices of future generations. Many people think of sustainability as the ongoing viability of 

natural systems (air, water, energy, biodiversity) in a balanced relationship with human life. A 

changing climate threatens our future prosperity, environment and development. Without strong 

action globally, and at home, the projected impacts and costs of the changing weather patterns are 

significant. Projects specifically targeting a reduction in the communities or the City of Greater 

Bendigo’s impact on the environment, including direct carbon reduction initiatives, new projects to 

repair or reduce environmental damage, encouraging environmentally sensitive design and 

community leading initiatives that promote better community behaviour toward the environment, 

including waste reduction, are supported. Preserving Bendigo’s unique natural heritage of being a 

‘city in a forest’ remains a priority. In the context of the Council Plan, built and natural assets and 

finances must also be managed in a way that is viable into the future. 

Services 

Service Unit 

Presentation 

and Assets 

Directorate 

Sustainable 

Environment 

Waste Services 

Building and 

Property 

Parking and 

Animal Control 


The Presentation and Assets Directorate provides and maintains 

high quality assets and services that help make the region a great 

place to live now while planning and delivering new assets and 

services to support Bendigo’s ongoing growth. Demonstrating 

environmentally responsible thinking and practices and encouraging 

this throughout the organisation and community is an important 

focus for the Directorate. 

The Sustainable Environment Unit provides a coordinated 

approach to the development of environmental policies, strategies, 

programs and processes to articulate clear directions to improve 

service delivery and enhanced environmental outcomes for the 

community. The Unit aims to reduce corporate carbon emissions, 

promote ecologically sustainable outcomes, identify effective and 

efficient directions for the management of municipal waste 

streams, and increase awareness of environmental matters. 

The Waste Services team provides the collection of garbage from 

domestic and commercial properties, collection and sorting of 

kerbside recycling, operation of landfills and transfer stations, 

street cleaning, and drain and pit cleaning. 

The Building and Property Unit ensures that the community assets 

(buildings and properties) are developed, upgraded, maintained 

and utilised to ensure the greatest benefit and lifestyle for the 

members of the community. Delivering Capital Works projects 

that meet the current community needs and for the future is also 

a key objective for the team. The Unit ensures that Council 

owned facilities, as well as other businesses, are safe for public use 

and ensures the public comply with relevant building codes and 

standards. 

The Parking and Animal Control Unit manages the City's Parking 

and Animal Services Program. This is to ensure safe and equitable 

use of parking resources, and to promote and maintain community 

safety, and public amenity and wellbeing in relation to the keeping 

of domestic animals and livestock. 

(Expenditure) 

Revenue 

Net Cost 

$'000 

(24,428) 

0 

(24,428) 

(1,088) 

50 

(1,038) 

(16,371) 

5,602 

(10,769) 

(7,439) 

1,657 

(5,782) 

(4,185) 

5,973 

1,788 


Finance 

The Finance Unit provides sound and professional stewardship 

over the City of Greater Bendigo's finances. The Unit’s key 

functions include the development and maintenance of all 

legislative and government departmental reporting and financial 

control requirements, and developing financial strategies which 

provide for sound debt and cash flow management, ensuring that 

the City of Greater Bendigo is a viable organisation. 

(1,497) 

*1,300 

(197) 

61 

(136) 

Initiatives 

Initiatives 

35) Appointment of temporary Systems Manager (1.00 FTE) to review quality, OH&S 

and Environmental Systems. 

Council 

Plan 

Reference 

36) Introduce public place recycling at approximately 50 locations. 5.1 

37) Additional hours for Native Vegetation Coordinator (0.2 FTE) as a result of 

increased demand. 

38) Implement elements of the new Waste and Resource Management Strategy. 5.1 

39) Develop and implement kerbside organic management service. 5.1 

40) Increased costs for Utilities, Service Contracts and Essential Safety Measures and 

services related to additional buildings now being managed. 

1.6 

5.2 

1.6 



Waste 

collection 

Waste 

diversion 

Kerbside collection waste diverted from 

landfill 

(Percentage of garbage, recyclables and 

green organics collected from kerbside 

bins that is diverted from landfill) 

[Weight of recyclables and 

green organics collected from 

kerbside bins / Weight of 

garbage, recyclables and 

green organics collected from 

kerbside bins] x100 


2.6 Major Initiatives 

Major Initiatives of Council for the 2014/2015 financial year relate to the continuation of planning, 

design and construction of significant capital or major projects. These projects are: 

Ulumbarra Theatre Construction 

Convert to energy efficient street lighting – Lighting the Regions 

Construction of Central Activity Area at Canterbury Park 

Planning and Design of Bendigo Indoor Aquatic Complex 

Design and Construction at Bendigo Botanic Gardens 

Planning and Design of Bendigo Airport 

Further details of these projects are included in Appendix C. 

2.7 Performance Statement 

The service performance indicators detailed in the preceding pages will be reported on within the 

Performance Statement which is prepared at the end of the year as required by section 132 of the 

Act and included in the 2014/15 Annual Report. The Performance Statement will also include 

reporting on prescribed indicators of financial performance (outlined in section 8) and sustainable 

capacity, which are not included in this budget report. The full set of prescribed performance 

indicators are audited each year by the Victorian Auditor General who issues an audit opinion on 

the Performance Statement. The major initiatives detailed in the preceding pages will be reported in 

the Annual Report in the form of a statement of progress in the report of operations. 

2.8 Reconciliation with Budgeted Operating Result 

(Net Cost) 

Revenue 

$’000 

Expenditure 

$’000 

Revenue 

$’000 

Leadership and Good Governance (10,730) 17,722 7,042 

Planning for Growth (5,271) 6,115 844 

Presentation and Vibe of Our City (36,990) 70,482 33,492 

Productivity (5,922) 7,553 1,631 

Sustainability (40,365) 55,008 14,643 

Total activities and initiatives (99,278) 156,930 57,652 

Other non-attributable 11,350 

Deficit before funding sources (87,928) 

Other Funding Sources 

Rates and charges 93,392 

Capital grants 5,182 

Contributions to capital works 1,423 

Total funding sources 99,997 

Operating Surplus for the year 12,069 


3. Budget Influences 

This section sets out the key budget influences arising from the internal and external environment 

within which the Council operates. 

3.1 Snapshot of Greater Bendigo City Council 

Located within central Victoria, Greater Bendigo has a catchment of over 200,000 people and a 

forecast population of 111,110 (ABS, Estimated Resident Population) in 2014. The population is 

projected to increase to 145,608 by 2031. The area the municipality covers is approximately 

2,999kms 2 . 

Greater Bendigo is the second largest city in regional Victoria. Its gross economic output is 

attributable to major industries and employment sectors including health and community services, 

retail, manufacturing, education, construction, property and business services, government 

administration, accommodation and hospitality, and banking and financial services. 

Bendigo has a proud gold mining heritage, with some of the finest examples of Victorian architecture 

and streetscapes in Australia. Bendigo is the home of Australia's longest running annual festival, the 

Bendigo Easter Festival. 

The City's cultural attractions include Bendigo Art Gallery, The Capital - Bendigo's Performing Arts 

Centre, Golden Dragon Museum, Central Deborah Mine, Bendigo Tramways and Bendigo Pottery. 

The municipality includes two National Parks - Greater Bendigo and Heathcote Greytown, both of 

which protect large areas of Box-Ironbark forest. 

3.2 Challenges and Opportunities 

The Council Plan has been a significant influence in preparing the 2014/2015 budget. In that 

document the challenges and opportunities for Council are outlined in detail, and listed below: 

Regional Growth and Sustainability 

Financial Sustainability 

Increasing expectations of service availability 

Community engagement and consultation 

Adapting to changing weather patterns 

Performance reporting 

Population growth and change 

Access to communications technology 

Skills replacement, succession planning and knowledge retention 

Maintenance of essential infrastructure 

3.3 External Influences 

In addition, external budget influences are: 

Constrained Federal and State Government fiscal environment 

Consumer Price Index (CPI) increases on goods and services of 2.7% through the year to 

December quarter 2013 

Impact of State and Federal Government budgets 2014, and State Government election in 

2014 

The increasing regulatory environment which requires City of Greater Bendigo to meet 

legislation standards 

Managing the impact of being a growing city with associated community needs 

Opportunities/incentives provided through government grant programs to deliver further 

programs and projects such as Street lighting conversion project 

Potential future liability related to the Defined Benefit Superannuation Fund 

Increase in the Environmental Protection Authority levy to be applied to landfill operations 


3.4 Internal Influences 

There are a number of internal influences which have had a significant impact on the preparation of 

the 2014/2015 Budget being: 

Budget principles (refer section 3.6) 

The Independent Review of the City of Greater Bendigo (refer section 3.5) 

Prioritisation by Council of several large capital works projects that will require increased 

funding both through rate revenue and loan borrowings 

Additional pressures resulting from the growth in service requirements 

Investment in developing workforce capability 

The need to replace and upgrade ageing infrastructure 

Commitment to maintain service standards in a growing municipality 

Ongoing focus on greater efficiency 

3.5 Independent Review 

There were a number of recommendations from the Independent Review conducted in 2013 which 

have been taken into account during the 2014/2015 budget process. 

Recommendation 3 - Create a standardised Matter for Decision template for investment and business 

case proposals (capital works, operational expenditure, service provision, upgrades/renewals, direct 

requests from Council and asset maintenance) to be applied across all Directorates. 

The Matter for Decision template must include: 

Information on the project, the need and purpose, and budget implications. 

The outcome for and benefit to the community. 

Clearly link the expense to the Asset Management Register (if appropriate). 

A clear link between the Council’s Vision, Strategy, Plan and the project. 

A monetary and risk threshold and decision making process to define the extent and depth 

of the business case and reporting required, and level of approval (similar to a procurement 

policy). 

To improve the information available for making funding decisions, two templates for business cases 

were used in developing the 2014/2015 budget being: 

New initiatives in the operating budget (listed in section 2). New funding in the operating 

budgets was allocated in response to operating budget business cases; and 

Capital Works projects. All Capital Work projects were required to be supported by a 

Business Case demonstrating the need for the project. 

Recommendation 4 – Create a formal asset management and infrastructure project ranking and 

evaluation framework. 

A Capital Evaluation Framework was developed to improve the transparency of allocation of funding 

to capital projects. A copy of the Framework is included at Appendix E. 

Recommendation 30 – Monitor working capital (liquidity) and the capital replacement financial ratios 

including any internal or external factors which will adversely affect these and, if necessary, take 

corrective action. 

A selection of financial indicators have been used to monitor the financial sustainability of decision 

making. The ratios related to the 2014/2015 budget are included at section 8.3. 


3.6 Budget Principles 

The principles set by Council for the 2014/2015 budget are: 

 

 

 

 

 

 

 

 

Take account of Best Value Principles 

Council’s budget will take account of the Council Plan and other strategic plans for: 

o new Capital Works using the agreed criteria of the Capital Evaluation Framework. 

o new and expanded services funded through the Operating budget, using the Business 

Case submission process 

Aim to balance the demand for services and infrastructure with the community's ability to 

pay 

Identify new revenue sources where possible 

Ensure existing levels of service can be maintained, as a minimum 

Aim to achieve a Working Capital ratio of no less that 150%; there will be $1.50 of current 

assets to every $1 of current liabilities, to maintain a low risk rating with VAGO 

Determining User Fees in accordance with the COGB's Pricing Policy 

Comply with existing financial policy by: 

o investing in renewing existing assets will be to the level of depreciation, in 

accordance with the COGB's Asset Management Policy. 

o maintaining debt servicing costs at less than 10% of rate revenue, in accordance 

with the COGB's Borrowing Policy 

3.7 Long Term Strategies 

The budget includes consideration of a number of long term strategies to assist Council in adopting 

the Budget in a proper financial management context. These include a Strategic Resource Plan for 

the years 2015/2016 to 2017/2018 (Section 8), Rating Information (Section 9) and Other Strategies 

(Section 10) which include borrowings, infrastructure and service delivery. 


4. Analysis of Operating Budget 

4.1 Budgeted Income Statement 

Ref 

Forecast 

Actual 

2013/2014 

$’000 


2014/2015 

$’000 

Variance 

$’000 

Operating Revenue 4.2 167,581 178,212 10,631 

Operating Expenditure 4.3 (159,220) (166,143) 6,923 

Surplus (Deficit) for the year 8,361 12,069 3,708 

Grants – Capital 4.2.8 (5,124) (5,182) 58 

Contributions – Non Monetary (12,000) (11,433) 567 

Underlying Result – Surplus/(Deficit) (8,763) (4,546) 4,217 

4.1.1 Underlying Result ($4.22 million increase) 

The underlying result is the net surplus or deficit for the year adjusted for capital grants, 

contributions of non-monetary assets and other once-off adjustments. It is a measure of financial 

sustainability as it is not impacted by non-recurring or once off items of revenues and expenses 

which can often mask the operating result. 

The underlying result for the 2014/2015 year is a deficit of $4.55 million compared to the 2013/2014 

forecast deficit of $8.76 million. This improved financial result is heavily influenced by the timing of 

the Victorian Grants Commission funding which is based on receipt of two quarterly payments in 

2013/2014 which increases the number of quarters budgeted to be received in 2014/2015 to the full 

four quarters, and timing of major work projects (refer 4.3.2). 

4.2 Revenue 

Revenue Types 

Ref 

Forecast 

Actual 


$’000 



$’000 

Variance 

$’000 

Rates and charges 4.2.1 86,492 93,392 6,900 

Statutory fees and fines 4.2.2 3,286 3,409 123 

User charges, fees and fines 4.2.3 24,716 24,266 (450) 

Reimbursements 4.2.4 334 328 (6) 

Contributions – cash 4.2.5 5,750 4,443 (1,307) 

Contributions - non monetary 

assets 4.2.6 12,000 11,433 (567) 

Government Grants - operating 4.2.7 28,840 34,814 5,974 

Government Grants - capital 4.2.8 5,124 5,182 58 

Interest revenue 4.2.9 1,539 1,445 (94) 

Total Revenue 168,081 178,712 10,631 


The graph below demonstrates the movement in operating revenue from 2013/2014 forecast to the 

2014/2015 budget. ($0 equals no difference to the 2013/2014 forecast). 

4.2.1 Rates and Charges ($6.90 million increase) 

Rates and charges represent the Council's income from general rates, municipal charge, garbage and 

recycling charges. The overall rates and charges income reflects an increase of 8.0% or $6.90 million 

over the 2013/2014 forecast. Supplementary rates are expected to contribute $1.93 million to rate 

revenue in 2014/2015. Section 9 'Rating Information' includes a more detailed analysis of the rates 

and charges to be levied for 2014/2015. 

4.2.2 Statutory Fees and Fines ($0.12 million increase) 

Statutory fees and fines relate to fees and fines levied in accordance with legislation and include 

animal registrations, parking fines, Health Act registrations and fines and various planning and building 

fees. Increases in statutory fees are made in accordance with legislative requirements. 

Statutory fees and fines are projected to increase by 3.7% or $123,000. 

4.2.3 User Charges, Fees and Fines ($0.45 million decrease) 

User charges relate to the recovery of service delivery costs through the charging of fees to users of 

Council’s services. These services include use of leisure, entertainment and other community 

facilities and the provision of human services such as home care and child care services. In setting 

the budget, the key principle for determining the level of user charges has been to increase by CPI 

where possible, taking into account the economic climate. 

User charges, fees and fines are projected to decrease by 1.8% or $450,000 over the 2013/2014 

forecast. The main areas contributing to the decrease are in relation to Swimming Pools of 

$300,000, fees are now collected by the Contractor but as a result contract payments have reduced, 

and reduction in revenue at The Capital of $130,000. Offsetting these decreases are the Bendigo 

Art Gallery ticketed exhibitions which will increase in 2014/2015 resulting in a $192,000 increase in 

income. There is increased income from Parking $207,000, Property Rental Income of $100,000, 

and Landfill Fees $72,000. 

The applicable fees and charges for 2014/2015 are available on Council’s web site and can also be 

inspected at Council’s Customer Service Centres. 


4.2.4 Reimbursements ($.006 million decrease) 

Reimbursements include amounts from work cover and insurance claims, and are remaining stable. 

4.2.5 Contributions - cash ($1.31 million decrease) 

Contributions include monies paid by developers in accordance with planning permits issued for 

property development, and contributions made by various parties towards provision of services and 

Capital/Major Projects. 

Cash contributions are projected to decrease by $1.31 million or 22.7% compared to the 2013/2014 

forecast. This includes a decrease of $926,000 in contributions towards Capital/Major Projects due 

to the nature of the projects such as the Bendigo Community Theatre development and 

infrastructure works associated with ViewPoint, Huntly. Offsetting this decrease is the bi-annual 

contribution from the Valuer General towards revaluation information of $515,000, budgeted to be 

received in 2014/2015. 

4.2.6 Contributions – non monetary assets ($0.57 million decrease) 

Non-monetary assets include developer constructed assets contributed by developers in accordance 

with planning permits issued for property development, including land, roads and drainage. The 

stable movement of 4.7% reflects the trend of developers constructing assets and transferring 

ownership to City of Greater Bendigo. 

4.2.7 Grants – operating ($5.97 million increase) 

Operating grants include all monies received from State and Federal sources for the purposes of 

supporting the delivery of Council’s services to ratepayers. Overall, the level of operating grants has 

increased by 20.7% or $5.97 million compared to 2013/2014 forecast. Significant movements in 

grant funding are summarised below: 

Major Grant Funding Types 

Forecast 

Actual 


$’000 



$’000 

Variance 

$’000 

Major Project Funding – Lighting the Regions 29,10 4,590 1,680 

Major Project Funding – Bendigo Community 

Theatre 5,655 4,690 (965) 

Victorian Grants Commission 7,368 15,073 7,705 

Aged Care 6,449 6,646 197 

Healthy Communities 1,198 992 (206) 

Social Support 930 956 26 

Other Grant Funding 4,330 1,867 (2,463) 

Total Grants – Operating 28,840 34,814 5,974 

Increased grants will be received in 2014/2015 as Council will continue to act as the auspice body 

for the construction of the Bendigo Community Theatre, and Lighting the Regions project. State 

and Federal funding will be received however this will be offset by the expenditure incurred in the 

construction of the projects. The increase in Victorian Grants Commission funding is based on 

receipt of four quarterly payments in 2014/2015 whereas only two quarters were received in 

2013/2014 as six quarterly payments were received in 2012/2013. 


4.2.8 Grants - capital ($0.058 million increase) 

Capital grants include all monies received from State and Federal Governments for the purposes of 

funding the Capital Work program. Overall the level of capital grants has increased by 1.1% or 

$0.058 million compared to the 2013/2014 forecast due to specific funding timing for some large 

capital works projects. In 2013/2014, $1.99 million for the Bendigo Art Gallery Expansion and 

$200,000 for Bendigo Library Redevelopment were received. In 2014/2015 no funds will be 

received for these projects however $500,000 of funding is budgeted for the Canterbury Park 

Activity Area, and $300,000 of funding for completion of current O’Keefe Rail Trail project. 

Section 6 “Analysis of Capital Budget” includes a more detailed analysis of the grants and 

contributions expected to be received during the 2014/2015 year. 

4.2.9 Interest Revenue ($0.094 million decrease) 

Interest revenue includes interest on investments and rate arrears. Interest is budgeted to decrease 

by 6.1% or $94,000 compared to the 2013/2014 forecast. This is attributable to cash flow 

predictions, particularly in relation to Capital Works funding and corresponding expenditure in 

2014/2015. 

4.3 Operating Expenditure 

Expenditure Types 

Ref 

Forecast 

Actual 


$’000 



$’000 

Variance 

$’000 

Employee benefits 4.3.1 49,033 54,390 5,357 

Contracts, materials and services 4.3.2 69,956 71,241 1,285 

Plant and equipment operating costs 4.3.3 4,464 4,810 346 

Borrowing costs 4.3.4 1,372 1,665 293 

Bad debts 4.3.5 124 129 5 

Net loss on sale/write off of assets 4,427 3,000 (1,427) 

Depreciation and amortisation 4.3.6 29,844 30,908 1,064 

Total Operating Expenditure 159,220 166,143 6,923 

The graph below demonstrates the movement in operating expenditure from 2013/2014 forecast to 

the 2014/2015 budget. ($0 equals no difference to the 2013/2014 forecast). 


4.3.1 Employee Benefits ($5.36 million increase) 

Employee benefits include all labour related expenditure such as wages and salaries and on-costs 

which includes allowances, leave entitlements and employer superannuation. 

Employee benefits are forecast to increase by $5.36 million compared to 2013/2014 forecast. This 

increase relates to the following key factors: 

Council’s Enterprise Agreement (EA) 

Reclassification of staff as prescribed by the relevant awards 

Impact of full year employment of staff who took up positions part way through 2013/2014, 

(approved in the 2013/2014 budget). 

Approved new positions to enable efficient and increased service delivery 

Offset savings in Consultancy and Contract Payments to achieve efficiencies 

Increase in superannuation payments as a result of the impact of changes in relation to the 

Superannuation Guarantee (from 9.25% to 9.50%) 

New positions fully funded by State Government 

Changes to staff numbers as included as new budget initiatives 

4.3.2 Contracts, Materials and Services ($1.29 million increase) 

Contracts, materials and services include the purchases of consumables, payments to contractors for 

the provision of services and utility costs. Contracts, materials and services are forecast to increase 

by 1.84% or $1.29 million compared to the 2013/2014 forecast. 

The increase is significantly due to the contribution to major works. Capital expenditure on non- 

Council assets is accounted for as operational expenditure, with the major projects in 2014/2015 

being the finalisation of construction of the Bendigo Community Theatre $10.04 million, and funding 

of the Lighting the Region Project of $6.25 million. The majority of these funds are being received 

from both Federal and State Government. $8.34 million is forecast to be expended on these 

projects in 2013/2014. 

Other items contributing to the increase include additional cartage costs associated with waste of 

$1.37 million, hire of mechanical plant $248,000, utilities $351,800, and contributions to community 

organisations $267,000. There has been a decrease of $318,000 in the budgeted payments to 

Consultants throughout the organisation. 

4.3.3 Plant and Equipment Operating Costs ($0.35 million increase) 

There is an increase in purchase of crushed rock of $427,395 due to increased maintenance and 

construction. 

4.3.4 Borrowing Costs ($0.29 million increase) 

Borrowing costs relate to interest charged by financial institutions on funds borrowed. The increase 

in borrowing costs results from the planned additional borrowings, and commitment of current loan 

portfolio. 

4.3.5 Bad Debts ($0.005 million increase) 

There is a minor increase in bad and doubtful debts in line with current trends. All debts are 

managed under the Revenue and Debt Collection Policy. 

4.3.6 Depreciation and Amortisation ($1.06 million increase) 

Depreciation is an accounting measure which attempts to allocate the value of an asset over its 

useful life for Council’s property, plant and equipment including infrastructure assets such as roads 

and drains. The increase of $1.06 million for 2014/2015 is due to the revaluation of some asset 

classes and the full year effect of the 2012/2013 capital works program. 


5. Analysis of Budgeted Cash Position 

This section analyses the expected cash flows from the operating, investing and financing activities of 

Council for the 2014/2015 year. Budgeting cash flows for Council is a key factor in setting the level 

of rates and providing a guide to the level of capital expenditure that can be sustained with or 

without using existing cash reserves. 

The analysis is based on three main categories of cash flows: 

Operating activities - Refers to the cash generated or used in the normal service delivery 

functions of Council. Cash remaining after paying for the provision of services to the 

community may be available for investment in capital works, or repayment of debt. 

Investing activities - Refers to cash generated or used in the enhancement or creation of 

infrastructure and other assets. These activities also include the acquisition and sale of other 

assets such as vehicles, property and equipment. 

Financing activities - Refers to cash generated or used in the financing of Council services 

and include borrowings from financial institutions and advancing of repayable loans to other 

organisations. These activities also include repayment of the principal component of loan 

repayments for the year. 

5.1 Budgeted Cash Flow Statement 

Ref 

Forecast 

Actual 


$’000 



$’000 

Variance 

$’000 

Cash flows from operating activities 5.1.1 

Receipts from customers 118,593 122,145 (3,552) 

Payments to suppliers and employees (115,301) (126,687) 11,386 

Interest received 1,820 1,450 370 

Government receipts 31,047 38,775 (7,728) 

Net cash provided by operating activities 36,159 35,683 476 

Cash flows from investing activities 5.1.2 

Proceeds from sales of property, plant & equipment 2,280 2,507 227 

Payments for property, plant and equipment (51,596) (41,401) 10,195 

Net cash used in investing activities (49,316) (38,894) 10,722 

Cash flows from financing activities 5.1.3 

Proceeds from borrowings - interest bearing 7,134 4,008 (3,126) 

Repayment of borrowings - interest bearing (1,957) (2,141) (184) 

Trust funds (196) 0 196 

Borrowing costs (1,432) (1,689) (257) 

Net cash used in financing activities 3,549 178 (3,371) 

Net increase (decrease) in cash and cash 

(9,608) (3,033) 6,575 

equivalents 

Cash and cash equivalents at the beginning of the year 42,178 32,570 (9,608) 

Cash and cash equivalents at end of the 

year 5.1.4/5.2 32,570 29,537 (3,033) 

Source: Appendix A 


5.1.1 Operating Activities ($0.47 million increase) 

The decrease in cash inflows from operating activities is a combination of increased revenue from 

rates (refer note 4.2.1) and increased operating grants (refer note 4.2.7), offset by increased 

employee costs (refer note 4.3.1), and increased contracts, materials and services (refer note 4.3.2). 

The net cash flows from operating activities does not equal the operating result for the year as the 

expected revenues and expenses of the Council include non-cash items which have been excluded 

from the Cash Flow Statement. The budgeted operating result is reconciled to budgeted cash flows 

available from operating activities as set out in the following table. 

Forecast 

Actual 


$’000 



$’000 

Variance 

$’000 

Surplus (deficit) for the year 8,361 12,069 3,708 

Depreciation 29,844 30,908 1,064 

Net non-cash movement in current assets and liabilities (2,546) (7,794) (5,248) 

Cash flows available from operating activities 35,659 35,183 476 

5.1.2 Investing Activities ($10.72 million decrease) 

The overall reduction in cash used for investing activities is as a result of decreased payments for 

property, plant and equipment due to the level of capital expenditure for 2014/2015 compared to 

forecast 2013/2014. The forecast for capital expenditure 2013/2014 includes the completion of a 

number of projects carried forward from 2012/2013. 

5.1.3 Financing Activities ($3.37 million decrease) 

For 2014/2015 the total principal repayment is $2.14 million and other finance charges are $1.69 

million. The 2014/2015 budget includes new borrowings of $4 million. Financing activities also 

includes lending of and repayment of approved loans for private heritage works and community 

organisations. 

5.1.4 Cash and Cash Equivalents at End of the Year ($3.03 million decrease) 

Overall, total cash and investments are forecast to decrease by $3.031 million to $29.54 million as at 

30 June 2015, reflecting Council’s strategy of using excess cash and investments to enhance service 

delivery and enable the renewal and upgrade of existing infrastructure, and the creation of new 


5.2 Restricted and Unrestricted Cash and Investments 

Cash and cash equivalents held by Council are restricted in part, and not fully available for Council’s 

operations. The budgeted cash flow statement (refer note 5.1) indicates that Council is estimating at 

30 June 2015 it will have cash and investments of $29.54 million, which are restricted as shown in 

the following table. 

Ref 

Forecast 

Actual 


$’000 



$’000 

Variance 

$’000 

Total cash and investments 32,570 29,537 (3,033) 

Restricted cash and investments 

- Statutory & Discretionary reserves 5.2.1 22,561 20,876 (1,685) 

- Trust Deposits 5.2.2 2,649 2,675 26 

Unrestricted cash and investments 5.2.3 7,360 5,986 (1,374) 


5.2.1 Statutory and Discretionary Reserves ($1.69 million decrease) 

Statutory funds must be applied for specified statutory purposes in accordance with various 

legislative and contractual requirements. While these funds earn interest revenues for Council, the 

funds are not available for other purposes. Discretionary reserves have been earmarked for specific 

utilisation in future years. Discretionary reserves include funds for waste disposal facility 

development, strategic property purchases, Bendigo Theatre development, long service leave, and 

future funding for defined benefit superannuation. 

5.2.2 Trust Deposits ($0.03 million) 

These funds are deposits or retention amounts controlled by Council and recognised as Trust Funds 

until they are returned or forfeited. 

5.2.3 Unrestricted Cash and Investments ($1.37 million decrease) 

These funds are free of all specific Council commitments and represent funds available to meet daily 

cash flow requirements and unexpected short term needs. The lower level of unrestricted cash and 

investment reflects Council’s commitment to utilising existing cash resources, minimisation of rate 

impacts and borrowing to fund Capital Works. The low level is also a result of determining that all 

discretionary reserves should be cash backed at 30 June each year – these funds immediately 

become available for use on 1 July. 


6. Analysis of Capital Budget 

This section analyses the planned capital expenditure budget for the 2014/2015 year and the sources 

of funding for the capital budget. 

6.1 Capital Works 

Capital Works Areas 

Ref 

Forecast 

Actual 


$’000 



$’000 

Variance 

$’000 

Capital Works 

Land Improvements 6.1.1 4,338 7,207 2,869 

Buildings 6.1.2 14,616 6,904 (7,712) 

Plant, Equipment and Other 6.1.3 5,247 5,061 (186) 

Roads and Bridges 6.1.4 20,129 16,032 (4,097) 

Drainage 6.1.5 4,949 5,580 631 

Public Furniture and Fittings 6.1.6 2,313 1,902 (411) 

Total Capital Works 51,592 42,686 (8,906) 

Represented by: 

New assets 6.1.7 11,854 8,405 (3,449) 

Asset renewal/upgrade 6.1.7 29,844 20,470 (9,374) 

Asset expansion 6.1.7 9,894 13,811 3,917 

Total capital works 51,592 42,686 (8,906) 

Source: Appendix A. 

A more detailed listing of the capital works program is included in Appendix C. 


6.1.1 Land Improvements ($7.21 million) 

The more significant projects budgeted for 2014/2015 include the development of the Canterbury 

Park Central Activity Area $3,487,000, finalisation of current stages of the O’Keefe Rail Trail 

Extension $960,000, and continuation of the Bendigo Botanic Gardens master plan implementation 

$250,000. 

6.1.2 Buildings ($6.90 million) 

For the 2014/2015 year, $6.90 million will be spent on building construction projects. The more 

significant projects include construction of Longlea Recreation Reserve Upgrade $566,000, Bendigo 

RSL Soldiers Memorial design works $230,000, staged construction of the Strathfieldsaye Pre-School 

and Maternal and Child Health Centre $460,000 and Dower Park Social Rooms $365,000. 

6.1.3 Plant, Equipment and Other ($5.06 million) 

For the 2014/2015 year, $5.06 million will be expended on plant, equipment and IT assets. The 

more significant projects include ongoing cyclical replacement of the plant and vehicle fleet of $3.75 

million, and upgrade and replacement of information technology $650,000. 

6.1.4 Roads and Bridges ($16.03 million) 

This classification includes local roads, bridges, footpaths, kerb and channel, bike/walking paths and 

traffic control. 

For the 2014/2015 year, $16.03 million will be expended on projects. The more significant projects 

include renewal of various road construction, traffic management and streetscape works $10.9 

million, Mitchell Street upgrade $1.8 million, $775,000 for bridge works and $806,000 for stage 3 of 

the East Bendigo Road Link. 

6.1.5 Drainage ($5.58 million) 

For the 2014/2015 year, $5.58 million will be expended on drainage projects. The need for a 

continued increased commitment to drainage works has been identified from Council's 5 Year 

Capital Works Plan, with major works to be conducted at Abel Street $570,000, and various 

drainage works around the municipality. 


6.1.6 Public Furniture and Fittings ($1.90 million) 

For the 2014/2015 year, $1.90 million will be expended on additional public furniture and fittings 

throughout the municipality, including seating, lighting, shade structures, bus shelters and playground 

equipment. Major projects include the construction of playspaces at Strathfieldsaye Recreation 

Reserve $395,000, and Maiden Gully $191,000. 

6.1.7 New Assets ($8.4 million), Asset Renewal/Upgrade ($20.5 million), Expansion 

($13.8 million) 

A distinction is made between expenditure on new assets, expenditure on asset renewal/upgrade 

and expansion. Expenditure on asset renewal/upgrade is expenditure on an existing asset, which 

improves the service potential or the life of the asset. Expenditure on new assets does not have any 

element of expansion of existing assets but will result in an additional burden for future operation, 

maintenance and capital renewal. 

6.2 Funding Sources 

Sources of funding 

Ref 

Forecast 

Actual 


$’000 



$’000 

Variance 

$’000 

External 

Grants – Capital 6.2.1 5,124 5,182 58 

Contributions 6.2.2 2,959 1,423 (1,536) 

Proceeds on sale of assets 6.2.3 2,280 2,507 227 

10,363 9,112 (1,251) 

Internal 

Reserve Investments 6.2.4 3,198 2,789 (409) 

Loan funds 6.2.5 7,000 4,000 (3,000) 

Working Capital/Operations 6.2.6 31,031 26,785 (4,246) 

41,229 33,574 (7,655) 

Total Funding Sources 51,592 42,686 (8,906) 



6.2.1 Grants - Capital ($5.18 million) 

Capital grants include all monies received from State and Federal sources for the purposes of funding 

the capital works program. Significant grants are budgeted to be received for Roads to Recovery 

projects $1.5 million, Canterbury Park Development $605,000, Mitchell Street development 

$400,000, and the Strathfieldsaye Early Learning Centre $480,000. 

6.2.2 Contributions ($1.42 million) 

Contributions are received from various sources to support the delivery of specific projects. 

Included in the budget for 2014/2015 is funding for Huntly-Fosterville Roadworks $507,000, 

$280,000 towards the Bendigo Stadium Extension planning, and Canterbury Park Development of 

$148,000 

6.2.3 Proceeds on Sale of Assets ($2.51 million) 

Proceeds from the sale of assets include plant and motor vehicle sales in accordance with Council's 

fleet renewal program of $954,000. Further funds will be generated from the sale of Council owned 

surplus properties. These proceeds will be transferred to the Land and Buildings Reserve. 

6.2.4 Reserve Investments ($2.79 million) 

The Council has significant cash reserves. During the budget preparation process, Council 

determines how much of these reserves will be used to fund its annual capital works program. The 

reserves include monies set aside for specific purposes such as Waste Management Facilities, Car 

Parking, Building Redevelopment and Drainage Works. For 2014/2015, $2.79 million will be used to 

fund part of the capital works program including $1.04 million towards Drainage Works. 

6.2.5 Loan Funds ($4 million) 

New borrowings of $4 million will be used to assist in the overall delivery of the capital works 

program including significant projects such as the Canterbury Park Development, Bendigo Botanic 

Garden Masterplan implementation and Greater Bendigo Indoor Aquatic Complex. 

6.2.6 Working Capital/Operations ($26.8 million) 

In addition to reserve investments, City of Greater Bendigo also has uncommitted cash and 

investments which represent working capital and funds preserved from the previous financial year. 

Cash is also generated from operating activities. $26.8 million will be available from operations and 

previously held cash investments to fund the 2014/2015 capital works program. Refer to section 5, 

’Analysis of Budgeted Cash Position’ for more information on funds from operations. 


7. Analysis of Budgeted Financial Position 

This section analyses the movement in assets, liabilities and equity between 2013/2014 and 

2014/2015. 

7.1 Budgeted Balance Sheet 

Ref 

Forecast 

Actual 


$’000 



$’000 

Variance 

$’000 

Current assets 7.1.1 

Cash and cash equivalents 32,570 29,537 (3,033) 

Trade and other receivables 7,177 11,538 4,361 

Inventory 116 117 1 

Other assets 381 426 45 

Total current assets 40,244 41,618 1,374 

Non-current assets 7.1.1 

Investments in Associates 4,681 4,821 140 

Trade and other receivables 390 394 4 

Forestry plantations 806 826 20 

Property, infrastructure, plant and equipment 1,184,561 1,233,245 48,684 

Intangibles 498 504 6 

Total non-current assets 1,190,936 1,239,790 48,854 

Total assets 1,231,180 1,281,408 50,228 

Current liabilities 7.1.2 

Trade and other payables 12,336 14,903 2,567 

Provisions 10,895 10,096 (802) 

Interest-bearing loans and borrowings 2,031 2,296 265 

Trust funds 2,649 2,675 26 

Total current liabilities 27,911 29,970 2,059 

Non-current liabilities 7.1.2 

Provisions 5,810 6,946 1,136 

Interest-bearing loans and borrowings 27,257 29,212 1,955 

Total non-current liabilities 33,067 36,158 3,091 

Total liabilities 60,978 66,128 5,150 

Net assets 7.1.3 1,170,202 1,215,280 45,078 

Equity 7.1.3 

Accumulated surplus 545,733 558,302 12,569 

Asset revaluation reserve 601,908 636,102 34,194 

Other reserves 22,561 20,876 (1,685) 

Total equity 1,170,202 1,215,280 45,078 



7.1.1 Current Assets ($1.37 million increase) and Non-Current Assets ($48.85 million 

increase) 

Cash and cash equivalents include cash and investments such as cash held in the bank and in petty 

cash and the value of investments held in deposits or other highly liquid investments with short term 

maturities of three months or less. These balances are projected to decrease by $3.03 million 

between the 2013/2014 forecast and 2014/2015 budget, refer to section 5 for an Analysis of 

Budgeted Cash Position for further detail. 

Trade and other receivables are monies owed to Council by ratepayers and others. Short term 

debtors continue to be managed under tight financial controls. Long term debtors (non-current) 

include loans to community organisations. 

Investments in Associates reflect Council's investment in the North Central Goldfields Regional 

Library Corporation. 

Property, infrastructure, plant and equipment is the largest component of Council’s worth and 

represents the value of all land, land improvements, buildings, artworks, plant and equipment, roads, 

bridges, drainage, and public furniture and fittings, which has been built up by the Council over many 

years. The increase in this balance is attributable to the net result of the capital works program, 

gifted developer assets, depreciation of assets, the sale and disposal of property, plant and equipment 

and revaluation of assets owned. 

7.1.2 Current Liabilities ($2.06 million increase) and Non-Current Liabilities ($3.09 

million increase) 

Trade and other payables are those to whom Council owes money as at 30 June. These liabilities 

are budgeted to increase slightly due to timing of capital works payments. 

Provisions include accrued long service leave and annual leave owing to employees. These employee 

entitlements are expected to increase slightly after factoring in an increase for Enterprise Bargaining 

outcomes. 

Interest-bearing loans and borrowings include the total of outstanding loan borrowings held by the 

Council. The Council is budgeting for new borrowings of $4 million and to repay $2.14 million of its 

loan portfolio over the year. 

7.1.3 Total Equity ($45.08 million increase) 

Total equity always equals net assets and is made up of the following components: 

Asset revaluation reserve which represents the difference between the previously recorded 

value of assets and their budgeted valuations as at 30 June 2014. 

Other reserves are funds that Council separately identify as being set aside to meet a specific 

purpose in the future and to which there is no existing liability. These amounts are 

transferred from the Accumulated Surplus of the Council to be separately disclosed. 

Accumulated surplus which is the value of all net assets less reserves that have accumulated 

over time. 


7.1.4 Working Capital ($0.69 million decrease) 

Forecast 

Actual 


$’000 



$’000 

Variance 

$’000 

Current assets 40,244 41,618 1,374 

Current liabilities 27,911 29,970 2,059 

Working Capital 12,333 11,648 (685) 

Reserves 22,561 20,876 (1,685) 

Unrestricted Working Capital (10,228) (9,228) (1,000) 

Working capital is the excess of current assets above current liabilities. This calculation recognises 

that although Council has current assets, some of those assets are already committed to the future 

settlement of liabilities in the following 12 months, and are therefore not available for discretionary 

spending. Council has also committed further current assets to specific and restricted purposes, 

represented by reserves, which may not yet be represented as current liabilities at 30 June. 

The low level is also a result of determining that all discretionary reserves should be cash backed at 

30 June – these funds immediately become available for use on 1 July each year. 

7.2 Key Assumptions 

In preparing the Budgeted Balance Sheet for the year ending 30 June 2015 it was necessary to make 

a number of assumptions about assets, liabilities and equity balances. The key assumptions are as 

follows: 

A total of 97.5% of total rates and charges raised will be collected in the 2014/2015 year. 

Trade creditors to be based on total capital and operating expenditure. Payment cycle is 30 

days. 

Other debtors and creditors to remain consistent with 2013/2014 levels. 

Employee entitlements to be increased by the Enterprise Agreement outcome offset by the 

impact of continued active management of leave entitlements of staff. 

Repayment of loan principal to be $2.14 million. 

Total capital and major work expenditure to be $62.22 million. 


8. Strategic Resource Plan and Financial Performance Indicators 

This section considers the long term financial projections of the Council. The Act requires a 

Strategic Resource Plan to be prepared covering both financial and non-financial resources, and 

including key financial indicators for at least the next four financial years to support the Council Plan. 

8.1 Plan Development 

Council has prepared a Strategic Resource Plan (SRP) for the four years 2014/2015 to 2017/2018 as 

part of its ongoing financial planning to assist in adopting a budget within a longer term framework. 

The SRP takes the strategic objectives and strategies as specified in the Council Plan and expresses 

them in financial terms for the next four years. 

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

medium to long term, while still achieving Council’s strategic objectives as specified in the Council 

Plan. The key financial objectives are: 

Achieving current or enhanced levels of service. 

Maintenance of cash reserves to enable the City of Greater Bendigo to meet its cash outlays 

as they fall due. 

Maintain a capital expenditure program of at least $40 million per annum, and ensuring 

renewal expenditure is not less than depreciation. 

Achieve a balanced budget on a cash basis. 

Return surplus operating results annually in order to maintain capacity to finance current and 

future Council strategies and meet capital investment and renewal requirements. 

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

Principles of Sound Financial Management as contained in the Act: 

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

Provide reasonable stability in the level of rate burden. 

Consider the financial effects of Council decisions on future generations. 

Provide full, accurate and timely disclosure of financial information. 

The Plan is updated annually through a rigorous process of consultation with Council service 

providers followed by a detailed sensitivity analysis to achieve the key financial objectives. 

8.2 Financial Resources 

The following table summarises the key financial results for the next four years as set out in the SRP 

for years 2014/2015 to 2017/2018. Appendix A includes a more detailed analysis of the financial 

resources to be used over the four year period. 

Forecast 

Actual 


$’000 



$’000 

Strategic Resource Plan 

Projections 

2015/2016 2016/2017 2017/2018 Trend 

$’000 $’000 $’000 +/o/- 

Operating result 8,861 12,569 26,417 27,805 35,909 + 

Underlying 

(3,826) (1,046) 8,476 8,750 9,238 + 

operating result 

Cash and 

32,883 29,537 29,837 30,400 37,256 o 

investments 

Cash flows from 31,918 35,683 51,235 55,962 65,823 + 

operations 

Capital works 47,355 42,686 57,098 58,275 62,053 + 


Key to Forecast trend above: 

+ Forecasts improvement in Council’s financial performance/financial position indicator 

o Forecasts that Council’s financial performance/financial position indicator will be steady 

– Forecasts deterioration in Council’s financial performance/financial position indicator. 

The following graph shows the general financial indicators over the four year period. 

The key outcomes of the SRP are as follows: 

Financial sustainability (Section 5) - Cash and investments are forecast to increase over 

the four year period from $32.88 million to $37.26 million. Cash held at 30 June is simply 

reflective of the timing of cash inflows and outflows. 

Rating strategy (Section 9) – Rates increases are forecast to remain at 6.0% over the 

three years 2015/2016 to 2017/2018. 

Service delivery strategy (Section 10) – Service levels have been increased in some areas 

throughout the four year period. Despite this, operating surpluses are forecast in all years as 

a result of continued operating and capital grant revenue being received to fund both the 

annual operating and capital works programs. The underlying result is a measure of financial 

sustainability and is an important measure as once-off items can often mask the operating 

result. 

Borrowing strategy (Section 10) – Borrowings are forecast to increase from $31.51 

million to $47.46 million over the four year period. This includes new borrowings of $4 

million in 2014/2015, $9.20 million in 2015/2016, $7.2 million in 2016/2017 and $8.2 million in 

2017/2018. These proposed borrowings are in line with Council’s borrowing strategy and 

reflect the identified requirements to meet forward capital works budgets. 

Infrastructure strategy (Section 10) - Capital expenditure over the four year period will 

total $220.1 million at an average of $55.03 million. 


Notes 

8.3 Key Financial Indicators 

The following table highlights Council’s current and projected performance across a range of key 

financial indicators. These provide a useful analysis of Council’s financial position and performance 

and should be used in the context of the organisation’s objectives. 

Indicator 

Operating position 

Adjusted 

underlying 

result 

Liquidity 

Working 

Capital 

Unrestricted 

cash 

Obligations 

Loans and 

borrowings 

Loans and 

borrowings 

Indebtedness 

Asset renewal 

Stability 

Rates 

concentration 

Rates effort 

Measure 

Adjusted underlying 

surplus (deficit) / 

Adjusted underlying 

revenue 

Current assets / 

current liabilities 

Unrestricted cash / 

current liabilities 

Interest bearing 

loans and 

borrowings / rate 

revenue 

Interest and 

principal 

repayments on 

interest bearing 

loans and 

borrowings / rate 

revenue 

Non-current 

liabilities / own 

source revenue 

Asset renewal 

expenses / 

depreciation 

Rate revenue / 

adjusted underlying 

revenue 

Rate revenue / CIV 

of rateable 

properties in the 

municipality 

Forecast 

Actual Budget 


Projections 

Trend 

2013/14 2014/15 2015/16 2016/17 2017/18 +/o/- 

1 (2.5%) (0.6%) 5.10% 4.97% 4.94% + 

2 144% 139% 142% 139% 155% o 

27% 20% 33% 26% 47% - 

3 33.9% 33.7% 38.1% 39.3% 40.5% o 

3.9% 4.1% 4.2% 4.7% 5.0% - 

28.4% 29.4% 32.4% 33.2% 33.8% - 

4 115% 66% 100% 100% 100% o 

5 57% 58% 61% 62% 63% o 

0.52% 0.51% 0.54% 0.55% 0.58% + 


Expenditure 

level 

Revenue level 

Workforce 

turnover 

Total expenditure / 

no. of property 

assessments 

Residential rate 

revenue / No. of 

residential property 

assessments 

No. of permanent 

staff resignations & 

terminations / 

average no. of 

permanent staff for 

the financial year 

$2,985 $3,059 $2,857 $2,986 $3,119 + 

$1,134 $1,244 $1,316 $1,395 $1,478 + 

8.8% 8.8% 8.8% 8.8% 8.8% + 

Notes to indicators 

1. Underlying result - Improvement in financial performance expected over the period, through 

utilisation of Council's cash reserves and/or additional borrowings. 

2. Current Assets/Current Liabilities – Working capital is forecast to decrease in 2014/2015 year 

due to a reduction in cash reserves to fund the capital program. The trend in latter years is to 

gradually increase. 

3. Indebtedness/Rate revenue - Trend is reflective of Council's borrowing strategy and includes 

some new borrowings in the future, offset by continued repayment of borrowings. 

4. Asset renewal/Total depreciation - This percentage indicates the extent of Council's renewals 

against its depreciation charge (an indication of the decline in value of its existing capital assets). A 

percentage greater than 100 indicates Council is maintaining its existing assets, while a percentage 

less than 100 means its assets are deteriorating faster than they are being renewed and future capital 

expenditure will be required to renew assets. 

5. Rate revenue/Underlying revenue - Reflects extent of reliance on rate revenues to fund all of 

Council's on-going services. Trend indicates Council’s reliance on rate revenue will remain at a 

similar level over the reported period. 

8.4 Non-Financial Resources 

In addition to the financial resources to be consumed over the planning period, Council will also 

utilise non-financial resources, in particular human resources. The following table summarises the 

human resources for the next four years. 

Forecast 


Indicator Actual Budget Projections 

2013/2014 2014/2015 2015/2016 2016/17 2017/2018 

Employee costs – ($’000) 

-Operating 49,033 54,390 57,718 62,047 66,700 

-Capital 4,690 3,963 5,041 5,419 8,825 

Total 53,723 58,353 62,759 67,466 72,525 

Employee Numbers 

(EFT) 707 718 735 753 770 


8.5 Staffing Resources 

The current breakdown of staff numbers for the City of Greater Bendigo is outlined below: 

No of Male No of Female Total No of Total 

Employees Employees Employees Employee % 

Full Time 270 170 440 41.9 

Part Time 57 276 333 31.7 

Casual 57 129 186 17.7 

Temp Full Time 15 41 56 5.4 

Temp Part Time 6 29 35 3.3 

Total 405 645 1,050 100% 


9. Rating Information 

This section contains information on Council’s past and foreshadowed rating levels along with 

Council's rating structure and the impact of changes in property valuations. 

9.1 Strategy Context 

In developing the Council Plan and the Strategic Resource Plan (referred to in Section 8), rates and 

charges were identified as an important source of revenue, accounting for approximately half of the 

total revenue received by Council annually. 

A key component of the strategy is to ensure the surplus on operations, when added to 

depreciation, funds an acceptable level of capital works without the need for excessive borrowing. 

The Council Plan assumes a rate increase of 6.00% in 2014/2015, then an ongoing rate increase of 

6.00% over the years 2015/2016, 2016/2017 and 2017/2018 plus additional rate revenue from 

growth. This enables the City of Greater Bendigo to embark upon a significant level of new capital 

works each year and a manageable level of borrowings. Planning for future rate increases has 

therefore been an important component of the long term financial planning process. 

The City of Greater Bendigo also actively reviews fees and charges each year to minimise pressure 

on rates to ensure users are paying a reasonable price for services. The City of Greater Bendigo 

also pursues all available opportunities for grants and subsidies. 

In determining rate increases each year it is necessary to balance the importance of rate revenue as 

a funding source with community sensitivity to increases, including the impact of a bi-annual general 

revaluation, which alters property valuations and subsequently rates for some properties in the 

municipality. The latest revaluation of properties has been applied in the 2014/2015 year. 

To ensure that deliberations about future rate increases have been made on an informed basis, 

comparisons of historical rate increases for the City of Greater Bendigo have been made. The 

following table shows the rate increases over four years and the average rate per capita. 

Rate Average Rate Per 

Year 

Increase 

Capita 

2011/2012 5.90% $699 

2012/2013 5.50% $730 

2013/2014 6.00% $778 

2014/2015 6.00% $825 

Average increase 5.85% $758 

Greater Bendigo City Council Budget - 2013/2014 45

9.2 Current Year Rate Increase 

It is predicted that the 2014/2015 operating position will be impacted by growth in services, labour 

costs and general cost increases. It will therefore be necessary in the future to carefully monitor the 

revenue growth from rates and charges while containing costs in order to maintain capital 

expenditure at a reasonable level and a sound financial position. The contribution from working 

capital/operations towards capital investments for the 2014/2015 year is adequate with the balance 

of funds required coming from reserves and loan borrowings. 

In order to achieve the objectives of maintaining service levels and a substantial capital expenditure 

program, total income from general rates will increase by 6.00% with the municipal charge being 

discontinued (was $32.40 in 2013/14). The reduction in municipal charge income is allocated into 

each differential rate. The rates in the dollar, taking into account the reduced municipal charge in 

2011/2012, 2012/2013, 2013/2014 and 2014/2015, maintain the approximate differential between the 

various rate categories as follows: 

 

 

 

 

 

Farm Rate is 85% of the general rate 

Commercial/industrial A is 185% of the general rate 

Commercial/industrial B is 180% of the general rate 

Commercial/industrial C is 190% of the general rate 

Vacant land is 125% of the general rate 

The garbage charge will increase by 5.47% for 140 litre bins, 5.94% for 240 litre bins, and the 

recycling charge will increase by 2.5%, raising a total of $93.39 million total rates and charges, 

including $1.93 million generated from supplementary rates. Garbage charges increase annually to 

cover additional waste management costs, EPA Environmental Landfill Levy increase and continued 

carbon pricing costs. 

9.3 Rating Structure 

City of Greater Bendigo has established a rating structure which is comprised of three key elements. 

These are: 

Property values, which reflect capacity to pay 

A user pays component to reflect usage of waste collection services provided by City of 

Greater Bendigo 

A user pays component to reflect usage of recycle waste collection services provided by the 

City of Greater Bendigo 

In establishing this rating structure, City of Greater Bendigo has taken account section 3C(1) of the 

Local Government Act – “The primary objective of a Council is to endeavor to achieve the best 

outcomes for the local community having regard to the long term and cumulative effects of 

decisions” and section 3C(2)(f) requires Council must ensure the “equitable imposition of rates and 

charges”. City of Greater Bendigo has had regard to the Ministerial Guidelines for Differential Rating 

as required by section 161(2A) of the Local Government Act. 

The City of Greater Bendigo makes a further distinction within the property value component of 

rates based on the purpose for which the property is used to assist in achieving the objective of 

equity, efficiency and simplicity, to meet its obligations under the Local Government Act. The rating 

structure comprises four broad differential rates being general, commercial/industrial, farm, and 

vacant land and a rate concession for recreational land. The detailed description of each differential 

rate is included in Appendix B of this document. 


The commercial/industrial properties are divided into three differential rates based on geographic 

locations. The three commercial/industrial rates and the vacant land rate are higher than the general 

rate, the farm rate is lower than the general rate. These rates are structured in accordance with the 

requirements of Section 161, Differential Rates, of the Local Government Act. Under the Cultural and 

Recreational Lands Act 1963, provision is made for a Council to grant a rating concession to any 

recreational lands which meet the test of being rateable land under the Local Government Act. 

Differential rates were introduced by City of Greater Bendigo in 1995. No significant alterations 

have been made to the rating structure since 1995, and given the rates collection rate of in excess of 

97%, the lack of submissions made in relation to the rating structure from annual budget to annual 

budget, and the Council re-affirming in its Rating Strategy review carried out in 2011 that the rating 

structure meets Council’s objectives together with complying with the Act, no further consultation 

with ratepayers has occurred. In compiling the 2011 Rating Strategy review, Council considered the 

degree of differentiation between the rate categories supported the three principles of benefit, 

capacity to pay and incentive to be supportable and reaffirmed its decision that the five differential 

rates levied achieve the objectives of equity, efficiency and simplicity. 

Striking a proper balance between these elements provides equity in the distribution of the rate 

burden across ratepayers, which allows the efficient carrying out of the functions of Council 

compared to the use of a uniform rate. The result is an equitable distribution of rates across sectors 

with the aim of optimal flexibility in collection of rates to deal with changing needs within the wider 

community. These distinctions are based on the concept that commercial/industrial properties 

should pay a fair and equitable contribution to rates, taking into account the benefits those 

businesses derive from the local community, the services Council provides and their ability to pay. 

The three different levels of commercial industrial differential rates, based on locality within the 

municipality, takes into account the differing levels of service provided by Council to commercial 

industrial properties in each locality. Vacant residential and vacant rural residential land are levied a 

rate higher than the general rate to encourage development of such land. 

Council has determined rates and charges in respect of farming properties should take account of 

the restricted access to many City of Greater Bendigo services and are appropriately discounted to 

the general rate. The farm rate generates 2.88% of rates, and Council has determined that the 15% 

concession in the rate in the dollar for Farm Rate to the General Rate does not create any adverse 

effect to the other five differential rate categories. 

The farm rate is set at 85% of the general rate and the reasons for the use and the level of a farm 

land differential rate are: 

To encourage the continuation of farming pursuits on rural land in support of the strategic 

objective to support the economic development of the agricultural sector; 

In recognition that the size of the landholding required to conduct a farm business is far 

greater than other non-farm businesses with similar turnover and (pre-tax) profitability. 

Therefore farms in comparison have a higher valuation and would pay higher rates if a lower 

differential was not applied; and 

In recognition that farm businesses profitability is affected by weather which means that their 

income is more susceptible and fragile than other businesses. 

Council has considered the Ministerial Guidelines for Differential Rating and has decided not to 

change the existing differential rating structure, and more specifically, not to introduce a differential 

rate for retirement villages. Council’s reasons for this are as follows: 

Any change to the rating system creates winners and losers, and whilst Council empathises 

with the lobby of the retirement villages, it also needs to make decisions that are in the 

interests of the majority of residents across the municipality including pensioners and self 

funded retirees that do not live in retirement villages; 


There are many pensioners living outside of “Retirement Villages” with and without body 

corporate financial responsibilities who also have difficulties paying Council rates. A 

reduction in rates for retirement villages would mean that these pensioners and others 

would have to pay more and this is not considered fair or equitable for the wider 

community. 

Council property rates are a tax on property wealth, not a fee for services used. This is 

similar to income tax, land tax and other “progressive taxes”. The philosophy behind these 

taxes is those who earn/own more should contribute more to the delivery of government 

services. There is no link between services used and the amount of rates paid as Council 

provides infrastructure and many services for public benefit. There are other examples 

where the use of Council services would be limited or not used at all, but the payment of 

rates is still required, like vacant land, multiple properties, other body corporate situations 

(the owner could also be a pensioner), weekender/holiday homes. 

Part of the body corporate fees go to maintaining and upgrading privately owned 

infrastructure and facilities like footpaths, roads and drainage, bowling greens, swimming 

pools, village community buildings and amenities. If a lower differential rate was applied for 

this reason other ratepayers would indirectly be subsidising the village owners business as 

the infrastructure within a retirement village is owned by the property owner and not the 

residents. 

The decision to “buy” into a retirement village is an individual choice and Council respects 

this, however, the financial implications, including body corporate fees, should be made quite 

clear and fully understood by the resident before committing to purchasing. 

By maintaining the current differential rating structure, equity is maintained as all properties 

that are used for residential purposes, irrespective of body corporate responsibilities, are 

levied at the same rate. This also maintains consistency with the other differential rating 

categories as there is only one rate set in each of these categories. 

The City of Greater Bendigo levies rates on the Capital Improved Valuation (CIV) of properties 

being the value of the land plus all improvements, on the basis that CIV provides an equitable 

distribution of rates across the municipality. 

Since 1994 the City of Greater Bendigo has levied a municipal charge. This charge is a contribution 

towards the administrative costs of the Council. An outcome of the 2011 Rating Strategy Review 

was that Council acknowledged that the municipal charge is regressive in nature in that it places an 

unnecessary burden on those with a lesser capacity to pay, as a result, the municipal charge has now 

been discontinued. This decision has been taken to provide rate relief to ratepayers of lower valued 

properties. In respect to residential properties, this rate relief will affect ratepayers of lower valued 

properties while the ratepayers of higher valued properties will have a higher than 6.00% rate 

increase in 2014/2015. 


The City of Greater Bendigo also has a kerb side waste collection charge and a kerb side recyclable 

waste charge as provided for under the Local Government Act. Increases in these charges are 5.47% 

for a 140 litre bin and 5.94% for a 240 litre bin for waste collection, and 2.5% for recycle collection, 

and reflect recovery of associated costs. There is also a waste collection charge for commercial 

properties in selected areas of the municipality. These charges are based on the levels of service 

received by users of the service and range from $232.00 to $1,624.00. An additional recycle bin is 

available at an annual charge of $46.00 per additional bin. 

The following table summarises the rates to be raised for the 2014/2015 year. A more detailed 

analysis of the rates to be raised is contained in Appendix B “Statutory Disclosures”. 

How 

Rate type 

2013/2014 2014/2015 

applied 

General rate Cents/$ CIV 0.3866% 0.3927% 

Commercial/industrial rate A Cents/$ CIV 0.7060% 0.7264% 

Commercial/industrial rate B Cents/$ CIV 0.6890% 0.7068% 

Commercial/industrial rate C Cents/$ CIV 0.7360% 0.7460% 

Farm rate Cents/$ CIV 0.3250% 0.3338% 

Vacant land - residential & rural residential Cents/$ CIV 0.4890% 0.4908% 

Municipal charge $/ property $32.40 $0.00 

Garbage Charge – 120/140 Litre per bin per property $/ property $128.00 $135.00 

Garbage Charge - 240 Litre per bin per property $/ property $219.00 $232.00 

Recyclable Garbage per bin per property $/ property $60.00 $61.50 

Additional Recyclable Garbage per bin per property $/ property $45.00 $46.00 

Garbage - (Specified Commercial Areas) 

One day per week service - per bin (Ex GST) $219.00 $232.00 

Two day per week service - per bin (Ex GST) $438.00 $464.00 

Three day per week service - per bin (Ex GST) $657.00 $696.00 

Five day per week service - per bin (Ex GST) $1095.00 $1,160.00 

Seven day per week service - per bin (Ex GST) $1533.00 $1,624.00 

Figures are GST exclusive if applicable. 

9.4 General Revaluation of Properties 

The revaluation of all properties within the municipality returned as at 1 January 2014 is utilised for 

raising rates for the 2014/2015 and 2015/2016 rating years. Property revaluation helps to make sure 

property owners pay their fair share of rates based on the principle of ability to pay determined by 

the value of properties, and people with more expensive properties pay more than people with less 

expensive properties. Revaluation does not generate extra revenue for Council; it redistributes the 

rate revenue across each differential rate based on property values. 

During the 2013/14 year, a revaluation of all properties within the municipality was carried out and 

will apply from 1 January 2014 for the 2014/15 year. The outcome of the general revaluation has 

been an increase in average property valuations throughout the municipality. Overall, property 

valuations across the municipal district have increased by 7%. Of this increase, residential properties 

have increased by 7.43% and business properties reduced by 3%. 

In view of the outcomes of the general revaluation of all properties within the Council’s municipal 

district during the 2013/2014 year, Council has chosen not to make any changes to the existing rate 

differential. In aggregate, total rates and charges will increase by 7.869% compared to 2013/2014. 

This will be achieved by adjusting the rate in the dollar to offset the increase in property valuations 

across the municipal district following the general revaluation, together with natural growth from 

supplementary valuations carried out during the 2013/2014 financial year. 


10. Other Strategies 

This section sets out the strategies that have been developed and incorporated into the Strategic 

Resource Plan including borrowings, infrastructure and service delivery. 

10.1 Borrowings 

In developing the Strategic Resource Plan (SRP), (see Section 8), borrowings were identified as an 

important funding source for capital works programs. In the past, Council has used a mix of 

borrowings and cash and investment reserves to fund the capital works program. 

For the 2014/2015 year, Council has decided on new borrowings of $4 million to partly fund the 

capital works program. After making loan repayments of $2.1 million, total borrowings will increase 

to $31.15 million at 30 June 2015. It is likely that in future years, further borrowings will be required 

to fund new infrastructure initiatives. The following table sets out future proposed borrowings, 

based on the forecast financial position of Council as at 30 June 2015. 

Year 

New 

Borrowings Principal Paid Interest Paid Balance 30 June 

$’000 $’000 $’000 $’000 

2013/2014 7,000 1,957 1,432 29,199 

2014/2015 4,000 2,141 1,689 31,058 

2015/2016 9,200 2,359 1,866 37,899 

2016/2017 7,200 2,879 2,245 42,220 

2017/2018 8,200 3,401 2,503 47,019 

The table below shows information on borrowings specifically required by the Regulations. 

2013/14 2014/15 

$’000 $’000 

Total amount borrowed as at 30 June of the prior year 24,156 29,199 

Total amount to be borrowed 7,000 4,000 

Total amount projected to be redeemed (1,957) (2,141) 

Total amount proposed to be borrowed as at 30 June 29,199 31,058 

10.2 Infrastructure 

The key aspects of the Capital Works program development are as follows: 

Identification of capital projects through the preparation of asset condition and management 

programs. 

Prioritisation of capital projects within classes on the basis of Capital Evaluation Framework 

(Appendix E). 

Business Case template for officers to document capital project submissions, and detailed 

business case for projects greater than $3 million. 

A key objective of the Capital Works Program is to maintain or renew Council’s existing assets at 

desired condition levels. If sufficient funds are not allocated to asset renewal through the Capital 

Works Program then Council’s investment in those assets will reduce, along with the capacity to 

deliver services to the community. 


In preparing the Capital Works program for the 2014/2015 year, the following influences have had a 

significant impact: 

Council's commitment to construct projects of a very substantial nature including a significant 

expenditure in relation to Canterbury Park. 

Growing demand for sporting facilities in growth areas of the municipality. 

Availability of Federal funding for upgrade of roads and to undertake infrastructure projects. 

Continued commitment to address community concerns regarding the standard of drainage 


Review of Council’s Asset Strategy, and Asset Management Plans. 

More rigorous assessment process for capital works projects has identified the need for 

increased effort in planning prior to construction. 

10.3 Service Delivery 

The key objectives in Council’s Strategic Resource Plan (referred to in Section 8) which directly 

impact the future service delivery strategy are to maintain and enhance existing service levels. The 

Rating Strategy (see Section 9) also refers to modest rate increases into the future. A number of 

internal and external influences have been identified through discussions with Council which will 

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

As well as the general influences, there are also a number of specific influences which relate directly 

to service areas or activities. The most significant changes in these areas are summarised below. 

Growth 

Commitment to ensure adequate funding for service units (particularly Parks and Natural Reserves, 

Building and Property, and Presentation and Works) to maintain current service levels although 

increasing assets due to the growth of the City. 

Waste Services 

Increasing costs associated with the disposal of waste, and the increases to the EPA landfill levy, 

while planning for future waste disposal, the increasing costs will partly be recovered through 

increased waste services fees. 

Independent Review 

Increasing costs and changes to the operations of various service units as a result of 

recommendations contained in the independent review, finalised in 2013. Refer to section 3.5 for 

further details. 

Ulumbarra Theatre 

Following completion of the construction of the Ulumbarra Theatre (approximately March 2015), 

Council will assume responsibility for operating the facility, and given marketing costs, utilities, offset 

by revenue, the theatre will operate at a cost of $275,000 in 2014/2015. 

Capital Works 

Increasing operational costs associated with construction of large capital projects in the previous 

financial year include Bendigo Art Gallery, Bendigo Library, Edward Street Complex, and the Epsom- 

Huntly Recreational Precinct. 


Appendices 

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

support for the analysis contained in sections 1 to 10 of this report. 

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

clarity. Council has decided that while the budget report needs to focus on the important elements 

of the budget and provide appropriate analysis, the detail upon which the annual budget is based 

should be provided in the interests of open and transparent local government. 

The contents of the appendices are summarised below: 

Appendix 

A 

B 

C 

D 

E 

F 

Nature of information 

Budgeted standard statements 

Statutory disclosures 

Capital Works program 

Maps 

Capital Evaluation Framework 

Glossary 


APPENDIX A 

Appendix A - Budgeted Statements 

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

for the years 2015/2016 to 2017/2018 has been extracted from the Strategic Resource Plan. 

The appendix includes the following budgeted information: 

Budgeted Income Statement 

Budgeted Balance Sheet 

Budgeted Cash Flow Statement 

Budgeted Capital Works Statement 

SRP Assumptions 

Standard Statement Assumptions 



Forecast 

2015/2016 

Forecast 

2016/2017 

Forecast 

2017/2018 

CPI 2.60% 2.60% 2.60% 2.60% 

Rates increases 6.0% 6.0% 6.0% 6.0% 

Supplementary rates ($’000’s) 1,932 1,700 1,830 1,893 

Grants Commission increases 2.75% 2.75% 2.75% 2.75% 

Recurrent grants % increase 2.75% 2.75% 2.75% 2.75% 

Capital Grants ($’000’s) 5,182 9,500 10,500 18,000 

% increase in User/Statutory Fees & Fines 4.19% 3.80% 4.00% 4.00% 

% increase in employee costs 8.1% 8.50% 8.20% 8.20% 

New borrowings ($’000’s) 4,000 9,200 7,200 8,200 

Interest on borrowings 6.00% 6.00% 6.00% 6.00% 

Interest on investments 3.50% 3.50% 3.50% 3.50% 

Capital Expenditure ($’000’s) 42,686 57,098 58,275 62,053 


APPENDIX A 

Budgeted Income Statement - for the four years ending 30 June 2018 

Forecast 

Actual 



Projections 


$’000 $’000 $’000 $’000 $’000 

Revenues 

Rates and charges 86,492 93,392 100,717 108,660 117,213 

Statutory fees and fines 3,286 3,409 3,452 3,590 3,377 

User charges, fees and fines 24,716 24,266 25,319 26,332 27,385 

Reimbursements 334 328 358 371 385 

Contributions – cash 5,750 4,443 4,031 4,160 4,293 

Contributions – non monetary 11,500 10,933 11,441 11,555 11,671 

Government grants - operating 28,840 34,814 30,709 31,554 32,421 

Government grants - capital 5,124 5,182 9,500 10,500 18,000 

Interest on investments 1,539 1,445 1,461 1,476 1,490 

Total revenues 167,581 178,212 186,988 198,198 216,235 

Expenses 

Employee costs 49,033 54,390 57,718 62,047 66,700 

Contract payments, materials and services 69,956 71,241 60,022 63,083 66,300 

Plant and equipment operating expenses 4,464 4,810 5,350 5,598 5,861 

Borrowing costs 1,372 1,665 1,866 2,245 2,503 

Bad debts 124 129 214 232 245 

Net Loss on disposal of property, plant, 

infrastructure and assets held for resale 4,427 3,000 3,000 3,000 3,000 

Depreciation 29,844 30,908 32,546 34,337 36,225 

Total expenses 159,220 166,143 160,716 170,542 180,834 

Operating Result 8,361 12,069 26,272 27,656 35,401 

Share of other comprehensive income of 

Associates accounted for by the equity 

method 500 500 145 149 153 

Net asset revaluation increments 34,194 32,509 69,837 63,489 8,366 

Comprehensive Result 43,055 45,078 96,254 91,294 43,920 

Proposed Greater Bendigo City Council Budget - 2011/12 54

APPENDIX A 

Budgeted Balance Sheet - for the four years ending 30 June 2018 

Forecast 

Actual 



Projections 


$’000 $’000 $’000 $’000 $’000 

Current assets 

Cash and cash equivalents 32,570 29,537 29,837 30,400 37,256 

Trade and other receivables 7,177 11,538 12,844 13,351 14,594 

Inventory 116 117 118 120 121 

Other assets 381 426 378 356 429 

Total current assets 40,244 41,618 43,177 44,227 52,400 

Non-current assets 

Investments in Associates 4,681 4,821 4,966 5,115 5,269 

Trade and other receivables 390 394 398 402 406 

Forestry plantations 806 826 843 860 880 

Property, infrastructure, plant and 

equipment 

1,184,561 1,233,245 1,334,587 1,430,069 1,471,779 

Intangibles 498 504 514 524 531 

Total non-current assets 1,190,936 1,239,790 1,341,308 1,436,970 1,478,865 

Total assets 1,231,180 1,281,408 1,384,587 1,481,197 1,531,265 

Current liabilities 

Trade and other payables 12,336 14,903 14,520 15,243 16,217 

Provisions 10,895 10,096 10,295 10,501 10,711 

Interest-bearing loans and borrowings 2,031 2,296 2,829 3,309 4,102 

Trust funds 2,649 2,675 2,702 2,729 2,757 

Total current liabilities 27,911 29,970 30,346 31,782 33,787 

Non-current liabilities 

Provisions 5,899 7,396 7,535 7,676 7,813 

Interest-bearing loans and borrowings 27,168 28,762 35,070 38,911 42,917 

Total non-current liabilities 33,067 36,158 42,605 46,587 50,730 

Total liabilities 60,978 66,128 72,951 78,369 84,517 

Net assets 1,170,202 1,215,280 1,311,534 1,402,828 1,446,748 

Equity 

Accumulated surplus 545,733 559,987 590,053 615,756 651,997 

Asset revaluation reserve 601,908 634,417 704,254 767,743 776,109 

Other reserves 22,561 20,876 17,227 19,329 18,642 

Total equity 1,170,202 1,215,280 1,311,534 1,402,828 1,446,748 


APPENDIX A 

Budgeted Cash Flow Statement - for the four years ending 30 June 2018 

Forecast 

Actual 



Projections 


$’000 $’000 $’000 $’000 $’000 

Cash flows from operating activities 

Receipts from customers 118,593 122,145 128,142 141,823 155,729 

Payments to suppliers and employee (115,301) (126,687) (123,187) (129,713) (134,588) 

Interest received 1,820 1,450 1,451 1,468 1,479 

Government receipts 31,047 38,775 44,829 42,384 43,194 

Net cash inflow (outflow) from operating 

activities 36,159 35,683 51,235 55,962 65,814 

Cash flows from investing activities 

Proceeds from sale of property, plant and 

equipment 2,280 2,507 700 800 799 

Payments for property, infrastructure, 

plant and equipment (51,596) (41,401) (57,098) (58,275) (62,053) 

Net cash inflow (outflow) from investing 

activities (49,316) (38,894) (56,398) (57,475) (61,254) 

Cash flows from financing activities 

Borrowing cost (1,432) (1,689) (1,866) (2,245) (2,503) 

Trust funds (196) 0 0 0 0 

Proceeds from borrowings – interest 

bearing liabilities 7,134 4,008 9,200 7,200 8,200 

Repayment of borrowings – interest 

bearing liabilities (1,957) (2,141) (2,359) (2,879) (3,401) 

Net cash inflow (outflow) from financing 

activities 3,549 178 4,975 2,076 2,296 

Net increase (decrease) in cash & 

cash equivalents (9,608) (3,033) (188) 563 6,856 

Cash and cash equivalents at beginning of 

year 42,178 32,570 29,537 29,349 29,912 

Cash and cash equivalents at end of 

year 32,570 29,537 29,349 29,912 36,768 


APPENDIX A 

Budgeted Capital Works Statement - for the four years ending 30 June 2018 

Forecast 

Actual 



Projections 


$’000 $’000 $’000 $’000 $’000 

Capital works areas 

Land improvements 4,338 7,207 20,462 12,522 7,329 

Buildings 14,616 6,904 5,358 16,330 18,917 

Plant, equipment and other 5,247 5,061 5,556 5,226 6,361 

Roads and bridges 20,129 16,032 16,796 15,800 19,228 

Drainage 4,949 5,580 5,842 5,496 6,688 

Public furniture and fittings 2,313 1,902 3,084 2,901 3,530 

Total capital works 51,592 42,686 57,098 58,275 62,053 

Represented by: 

New Assets 11,854 8,405 13,504 13,166 14,453 

Renewal 29,844 20,470 32,546 34,337 36,225 

Expansion/Upgrade 9,894 13,811 11,048 10,772 11,375 

Total capital works 51,592 42,686 57,098 58,275 62,053 


APPENDIX A 

Budgeted Statement of Changes in Equity- for the four years ending 30 June 2018 

Total 

Accumulated 

Surplus 

Revaluation 

Reserve 

Other 

Reserves 

$’000 $’000 $’000 $’000 

2014/2015 Budget 

Forecast balance at the beginning of the financial 1,170,202 545,733 601,908 22,561 

year 

Comprehensive result 12,569 12,569 - - 

Net asset revaluation increment / (decrement) 32,509 - 32,509 - 

Transfer to reserves - (11,032) - 11,032 

Transfer from reserves - 12,717 - (12,717) 

Balance at the end of the financial year 1,215,280 559,987 634,417 20,876 

2015/2016 SRP 

Balance at the beginning of the financial year 1,215,280 559,987 634,417 20,876 






2016/2017 SRP 





Transfer from reserves - 400 - (400) 


2017/2018 SRP 








APPENDIX A 

Budgeted Statement of Human Resources - for the four years ending 30 June 2018 

Forecast 

Actual 



Projections 


$’000 $’000 $’000 $’000 $’000 

Staff Expenditure 

Employee Costs – Operating 49,033 54,390 57,718 62,047 66,700 

Employee Costs – Capital 4,690 3,963 5,041 5,419 5,825 

Total Staff Expenditure 53,723 58,353 62,759 67,466 72,525 

Total Staff Numbers – FTE 707 718 735 753 770 


APPENDIX B 

Appendix B – Rates and Charges 

This appendix presents information about rates and charges which the Act and the Regulations 

require to be disclosed in the Council’s annual budget. 


APPENDIX B 

Rates and Charges 

1. Rates and charges 

1.1 The proposed rate in the dollar for each type of rate to be levied. 

Type of Property 


cents/$CIV cents/$CIV 

A rate for rateable general properties 0.3866% 0.3927% 

A differential rate for rateable commercial/industrial properties 

Class A 0.7060% 0.7264% 


Class B 0.6890% 0.7068% 


Class C 0.7360% 0.7460% 

A differential rate for rateable farm properties 0.3250% 0.3338% 

A differential rate for rateable vacant land properties – 

residential & rural residential 0.4890% 0.4908% 

Rate concession for rateable recreational properties Class 1 0.1933% 0.19635% 



Rate concession for rateable recreational properties Class 4 $309.40 $362.30 

Rate concession for rateable recreational properties Class 5 $416.00 $475.30 

1.2 The estimated amount to be raised by each type of rate to be levied. 






$ $ 

General 50,367,503 56,300,093 

Commercial/industrial 15,880,445 17,043,245 

Farm 2,232,904 2,288,326 

Vacant – residential & rural residential 3,224,733 3,736,275 

Recreational 47,973 49,961 

Rating agreements 41,169 43,842 

Total rates to be raised 71,794,727 79,461,742 


APPENDIX B 

1.3 The proposed percentage change in the rate in the dollar for each type of rate to be levied 

compared to that of the previous financial year. 


Type of Property Change Change 

% % 

General 9.52 1.58 

Commercial/industrial Class A 6.97 2.90 

Commercial/industrial Class B 7.66 2.61 

Commercial/industrial Class C 6.66 1.36 

Farm Rate 5.52 2.77 

Vacant Land – rural & rural residential 12.93 0.35 

Cultural and Recreation Class 1 9.52 1.58 





A general revaluation was applied in 2014/2015, combined with the discontinuation of the municipal 

charge had the effect of increasing the rate in the dollar against the 2013/2014 year. The 25% 

reduction in the Municipal Charge has an impact on the % change on all property types in that the 

redistribution of some income from the Municipal Charge to each Differential Rate, together with 

natural growth, creates a higher increase to the rate in the dollar. 

1.4 The proposed differential rate in the dollar factor compared to the general rate for each 

type of rate to be levied compared to that of the previous financial year. 



Differential to 

General Rate 

Differential to 

General Rate 

General 1.00 1.00 

Commercial/industrial Class A 1.83 1.85 

Commercial/industrial Class B 1.78 1.80 

Commercial/industrial Class C 1.90 1.90 

Farm Rate .84 0.85 

Vacant Land – rural & rural residential 1.26 1.25 




Cultural and Recreation Class 4 N/A N/A 

Cultural and Recreation Class 5 N/A N/A 


APPENDIX B 

1.5 The number of assessments for each type of rate to be levied compared to the previous year. 



General 44,426 45,271 

Commercial/industrial Class A 2,120 2,210 

Commercial/industrial Class B 275 279 

Commercial/industrial Class C 1,121 1,124 

Farm Rate 1,246 1,217 

Vacant Land – rural & rural residential 4,101 4,008 

Cultural and Recreation Class 1 6 5 





Rating Agreements 146 146 

Total number of assessments 53,496 54,313 

1.6 The basis of valuation to be used is the Capital Improved Value (CIV). 

1.7 The estimated total value of land in respect of which each type of rate is to be levied, 

compared with the previous year. 


No 

No 


$’000 $’000 

General 13,030,237 14,336,949 

Commercial/industrial Class A 1,230,211 1,307,563 

Commercial/industrial Class B 95,946 98,019 

Commercial/industrial Class C 888,072 918,547 

Farm Rate 687,545 685,546 

Vacant Land – rural & rural residential 659,288 761,282 

Cultural and Recreation Land and Rating Agreements 58,697 79,916 

Total 16,649,996 18,187,822 

1.8 The Municipal Charge has been discontinued effective for the 2014/2015 financial year. 


APPENDIX B 

1.9 The proposed unit amount to be levied for each type of charge under Section 162 of the Act 

for both rateable and non-rateable properties. 

$ Per Bin $ Per Bin % 

Type of Charge 2013/2014 2014/2015 Change 

Kerbside garbage collection – 120/140 Litre bin 128.00 135.00 5.5% 

Kerbside garbage collection – 240 Litre bin 219.00 232.00 5.9% 

Kerbside recycling collection 60.00 61.50 2.5% 

Recycling bin collection in excess of one bin (per 

additional bin) 45.00 46.00 2.02% 

Recycling bin – Change from 240 Litre to 360 Litre N/A 46.00 New 

Garbage Collection and Disposal – Commercial/Industrial Properties as 

specified in Council’s Garbage and Recycling Charge policy 

Kerbside collection - Commercial properties – 240 

Litre bin* 240.90 255.20 5.9% 

Kerbside collection - Commercial properties - 120/140 

Litre bin* 140.80 148.50 5.5% 

Garbage Collection and Disposal in Specific Commercial Areas as specified in 

Council’s Garbage and Recycling Charge policy 

Kerbside collection - 1 day per week* 240.90 255.20 5.9% 

Kerbside collection - 2 days per week* 481.80 510.40 5.9% 

Kerbside collection - 3 days per week* 722.70 765.60 5.9% 

Kerbside collection - 5 days per week* 1,204.50 1,276.00 5.9% 

Kerbside collection - 7 days per week* 1,686.30 1,786.40 5.9% 

(*Amounts are GST inclusive) 

1.10 The estimated amounts to be raised for each type of charge with prior year comparison. 

2013/2014 2014/2015 Change 

Type of Charge 

$ $ % 

Municipal 1,721,671 0 (100.0%) 

Kerbside garbage collection – 120/140 Litre bin 3,323,392 3,627,990 9.2% 

Kerbside garbage collection - 240 Litre bin 4,071,429 4,283,416 5.2% 

Kerbside recycling collection 2,752,710 2,873,319 4.4% 

Garbage Collection and Disposal – Commercial/Industrial Properties as 

specified in Council’s Garbage and Recycling Charge policy 

Kerbside collection – Commercial/industrial properties - 

240 Litre bin* 713,787 752,329 5.4% 

Kerbside collection – Commercial/industrial properties – 

120/140 Litre bin* 71,104 78,260 10.1% 

Garbage Collection and Disposal in Specific Commercial Areas as specified in 

Council’s Garbage and Recycling Charge policy 

Kerbside collection - 1 day per week* 219,701 233,507 6.3% 

Kerbside collection - 2 days per week* 52,998 55,634 5.0% 




Total $13,329,578 $12,350,035 (7.3%) 

Less GST ($132,763) $(142,301) 7.2% 

TOTAL $13,196,815 $12,207,734 (7.5%) 

(*amounts are GST inclusive) 


APPENDIX B 

1.11 The estimated total amount to be raised by rates and charges: 





$ $ 

Rates and charges 84,991,542 91,459,476 

Supplementary rates 1,500,000 1,932,334 

Total 86,491,542 93,391,810 

1.12 There are no known significant changes which may affect the estimated amounts to be raised 

by rates and charges. However, the total amount to be raised by rates and charges may be 

affected by: 

The making of supplementary valuations 

The variation of returned levels of value (e.g. valuation appeals) 

Changes in use of land such that rateable land becomes non-rateable land and vice versa; 

and 

Changes in use of land such that residential land becomes commercial/industrial land 

and vice versa. 

2. Differential Rates 

2.1 Rates to be levied 

The rate and amount of rates payable in relation to land in each category of differential are: 

A general rate of 0.3927% (0.3927 cents in the dollar of CIV) for all rateable general 

properties. The total amount raised from the general rate in 2014/2015, exclusive of 

supplementary rates will be $56,300,093. General rate type properties include properties with 

residences erected. 

A differential rate of 0.7264% (0.7264 cents in the dollar of CIV) for all rateable 

commercial/industrial A properties. The total amount raised from the commercial/industrial A 

differential rate in 2014/2015, exclusive of supplementary rates will be $9,498,093. 


commercial/industrial B properties. The total amount raised from the commercial/industrial B 

differential rate in 2014/2015, exclusive of supplementary rates will be $692,792. 


commercial/industrial C properties. The total amount raised from the commercial/industrial C 

differential rate in 2014/2015, exclusive of supplementary rates will be $6,852,360. 

A differential rate of 0.3338% (0.3338 cents in the dollar of CIV) for all rateable farm 

properties. The total amount raised from the farm differential rate in 2014/2015, exclusive of 

supplementary rates will be $2,288,326. 

A differential rate of 0.4908% (0.4908 cents in the dollar of CIV) for all rateable non 

commercial/industrial zoned vacant land properties. The total amount raised from the vacant 

land differential rate in 2014/2015, exclusive of supplementary rates will be $3,736,275. 

A rating concession of 0.19635% (0.19635 cents in the dollar of CIV) for all rateable class 1 

cultural and recreational properties. The total amount raised from the cultural and 

recreational class 1 differential rate in 2014/2015, exclusive of supplementary rates will be 

$10,273. 




$20,619. 


APPENDIX B 




$3,880. 

A rating concession of $362.30 for all rateable class 4 cultural and recreational properties. The 

total amount raised from the cultural and recreational class 4 differential rate in 2014/2015, 

exclusive of supplementary rates will be $6,159. 

A rating concession of $475.30 for all rateable class 5 cultural and recreational properties. The 

total amount raised from the cultural and recreational class 5 differential rate in 2014/2015, 

exclusive of supplementary rates will be $9,031. 

Each differential rate (excepting class 4 and class 5 cultural and recreation properties) will be 

determined by multiplying the Capital Improved Value of each rateable land (categorised by the 

characteristics described below) by the relevant percentages indicated above. 

City of Greater Bendigo considers that each differential rate will contribute to the equitable and 

efficient carrying out of City of Greater Bendigo functions. Details of the objectives of each 

differential rate, the types of classes of land, which are subject to each differential rate and the uses 

of each differential rate, are set out below. 

2.2 Rebates and Concessions 

In accordance with the provisions of Section 169 of the Local Government Act, and in keeping with 

agreements that bind the Council, City of Greater Bendigo grants a concession to each owner (or, 

where applicable, occupier) of rateable land described below, in the amount authorised by any 

Agreement binding Council for: 

Lords Raceway, 646-650 McIvor Highway, Junortoun, Victoria 

Department of Human Services Aged Person’s Units located at: 

20 Mackenzie Street West, Golden Square, Victoria 

15 Burrowes Street, Golden Square, Victoria 

2 Jeffrey Street, Elmore, Victoria 

3 Carpenter Street, Kangaroo Flat, Victoria 

18 Camp Street, Kangaroo Flat, Victoria 

159 Retreat Road, Spring Gully, Victoria 

32 Castle Street, North Bendigo, Victoria 

17-19 Kirkwood Road, Eaglehawk, Victoria 

2 Virginia Street, Eaglehawk, Victoria 

51 Bannister Street, North Bendigo, Victoria 

In accordance with the provisions of Section 169 of the Local Government Act, City of Greater 

Bendigo grants a rebate to each owner (or, where applicable, occupier) of rateable land, upon 

successful application, that meets the criteria of the City of Greater Bendigo Bushcare Incentive 

(Rate Rebate) Program. The rebate is 100% of the rates calculated on the site value of the protected 

land as declared in the required Trust for Nature conservation covenant. A Trust for Nature 

conservation covenant provides the highest level of protection to land. The protection of private 

remnant native vegetation is a high priority recognised by all levels of government, as some of the 

highest value native vegetation is found on private property. The benefit to the community as a 

whole is to preserve privately owned natural bushland containing remnant native vegetation. 

2.3 Discount 

In accordance with the provisions of Section 168 of the Local Government Act, City of Greater 

Bendigo will grant a discount of 1.5% of the 2014/2015 rates and charges (exclusive of any rebates 

and Victorian Government Fire Services Property Levy) should full payment (including any arrears) 

be made on or before Tuesday 30 September 2014. 


APPENDIX B 

2.4 General Rate 

Having regard to the Rating Strategy carried out in 2011 and the Victorian Government’s Developing 

a Rating Strategy: A guide for Councils, the objective of the General Rate is to efficiently and equitably 

impose a rate on rateable land within the municipal district (except rateable land which is 

commercial/industrial, farm land or vacant residential or vacant rural residential land, which are 

subject to separate differential rates) to: 

a. Assist Council to meet its primary objective of endeavouring to achieve the best outcomes for 

the local community having regard to the long term and cumulative effects of Council’s 

decisions (section 3C(1) of the Act); 

b. To raise revenue to be used to improve the overall quality of life of people in the local 

community within Council’s municipal district (in accordance with the facilitating objective in 

section 3C(2)(c) of the Act); and 

c. To ensure the equitable imposition of rates and charges (in accordance with the facilitating 

objective in section 3C(2)(f) of the Act). 

General Rate Land is any land, which is not: 

Commercial/industrial Land A; Commercial/industrial Land B; Commercial/industrial Land C; Farm 

Land or Vacant Land; 

and which is: 

Used primarily for residential purposes; or 

Less than 1500m 2 in area and used primarily for indoor, cultural or recreational purposes by a 

body which applies its profits to promote its objects and otherwise prohibits the payment of a 

dividend or amount to its members. 

The general rate will be used to fund some of those items of expenditure described in the budget 

adopted by City of Greater Bendigo. The types and classes of rateable land within this differential 

rate are those having the relevant characteristics described above. 

The zoning applicable to each rateable land within this category, as determined by consulting maps 

referred to in the relevant Planning Scheme. 

All buildings which are now constructed on the land or which are constructed prior to the expiry of 

the 2014/2015 Financial Year. 

The geographic location of the land within this rate is wherever located within the municipal district. 

The use of the land within this rate, in the case of improved land, is any use permitted under the 

relevant Planning Scheme. 

2.5 Commercial/Industrial Land A 


a Rating Strategy: A guide for Councils, the objective of the Commercial/industrial Land A Differential 

Rate is to efficiently and equitably impose a differential rate on rateable land within the municipal 

district (except rateable land which is general, commercial/industrial land B, commercial/industrial 

land C, farm land or vacant residential or vacant rural residential land which are subject to separate 

differential rates) to: 





APPENDIX B 






Commercial/industrial Land A is any land, which is not: 

General Land; Commercial/industrial Land B; Commercial/industrial Land C; Farm Land or Vacant 

Land 

and which is used primarily for: 

Sale of goods or services; or 

Other commercial purposes; or 

Industrial purposes; or 

Vacant unoccupied land zoned or intended to be used for commercial or industrial purposes; 

and located in the area depicted in Appendix D Annexure D-1 (excluding the Bendigo CBD as 

depicted in Appendix D-2). 

The differential rate will be used to fund some of those items of expenditure described in the budget 







The geographic location of the land within this differential rate is in the area depicted in Appendix D 

Annexure D-1. 

The use of the land within this differential rate, in the case of improved land, is any use permitted 

under the relevant Planning Scheme. 

2.6 Commercial/industrial Land B 


a Rating Strategy: A guide for Councils, the objective of the Commercial/industrial Land B Differential 


district (except rateable land which is general, commercial/industrial land A, commercial/industrial 

land C, farm land or vacant residential or vacant rural residential land which lands are subject to 

separate differential rates) to: 









Commercial/industrial Land B is any land, which is not: 


APPENDIX B 

General Land; Commercial/industrial Land A; Commercial/industrial Land C; Farm Land or Vacant 

Land; 






and not located within the area depicted in Appendix D, Annexure D-1 or D-2. 








The geographic location of the land within this differential rate is wherever located within the 

municipal district, not located within the area depicted in Appendix D, Annexure D-1 or D-2. 



2.7 Commercial/Industrial Land C 


a Rating Strategy: A guide for Councils, the objective of the Commercial/industrial Land C Differential 


district (except rateable land which is general, commercial/industrial land A, commercial/industrial 

land B, farm land or vacant residential or vacant rural residential land which lands are subject to 

separate differential rates) to: 









Commercial/industrial Land C is any land, which is not: 

General Land; Commercial/industrial Land A; Commercial/industrial Land B; Farm Land or Vacant 

Land; 







APPENDIX B 

and located in the area depicted in Appendix D Annexure D-2. 









municipal district, in the area depicted in Appendix D, Annexure D-2. 



2.8 Farm Land 


a Rating Strategy: A guide for Councils, the objective of the Farm Land Differential Rate is to efficiently 

and equitably impose a differential rate on rateable land within the municipal district (except rateable 

land which is general, commercial/industrial land A, commercial/industrial land B, 

commercial/industrial C or vacant residential or vacant rural residential land which lands are subject 

to separate differential rates) to: 









Farm Land is any land, which is not: 

General Land; Commercial/industrial Land A; Commercial/industrial Land B; Commercial/industrial 

C or Vacant Land; 

and which is “farm land” within the meaning of Section 2(1) of the Valuation of Land Act 1960. 









municipal district. 


APPENDIX B 



2.9 Vacant Land 


a Rating Strategy: A guide for Councils, the objective of the Vacant Land Differential Rate is to 

efficiently and equitably impose a differential rate on rateable land within the municipal district 

(except rateable land which is general, commercial/industrial land A, commercial/industrial land B, 

commercial/industrial C or farm land which lands are subject to separate differential rates) to: 









Vacant Land is any land, which is not: 

General Land; Commercial/industrial Land A; Commercial/industrial Land B; Commercial/industrial 

Land C or Farm Land; 

and which is land on which no dwelling is erected. 









municipal district. 




APPENDIX C 

Appendix C - Capital Works Program 

This appendix presents a listing of the capital works projects that will be undertaken for the 

2014/2015 year. 

The capital works projects are grouped by asset class. 

Proposed Greater Bendigo City Council Budget – 2013/14 72

APPENDIX C 

Capital Works Program 

For the year ending 30 June 2015 

Capital 

Works 

Area 

RENEWALS 

Building 

Project Description 

Project 

Cost 

New Renewal Upgrade Expansion 

Major 

Works 

Grants 

Contributions Council 

Cash 

Borrowings 

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

BBQs 46 0 46 0 0 0 0 20 26 0 

Bendigo Trust 450 0 50 400 0 0 0 0 450 0 

Buildings Other 958 0 190 210 0 558 0 10 948 0 

Child Care Properties 151 0 0 101 0 50 0 50 101 0 

Heritage Properties 926 0 771 120 0 35 0 0 926 0 

Public Toilets 67 0 0 37 0 30 0 0 67 0 

Recreation Ancillary Structures 1,030 0 710 320 0 0 100 25 905 0 

Recreation Properties 1,536 0 571 830 0 135 200 5 1,331 0 

Total Buildings 5,164 0 2,338 2,018 0 808 300 110 4,754 0 

IT and Furniture 

Furniture and Office Equipment 40 0 40 0 0 0 0 0 40 0 

Information Technology 650 0 590 60 0 0 0 0 650 0 

Total IT and Furniture 690 0 630 60 0 0 0 0 690 0 

Land Improvements 

Asset Expenditure Types 

Funding Sources 

Airport Works 50 0 0 0 0 50 0 0 50 0 

Livestock Exchange 50 0 50 0 0 0 0 0 50 0 

Recreation Hard Surfaces 50 0 50 0 0 0 0 10 40 0 

Sporting Surfaces (Soft Surfaces) 260 0 180 80 0 0 0 13 247 0 

Total Land Improvements 410 0 280 80 0 50 0 23 387 0 

Proposed Greater Bendigo City Council Budget – 2014/2015 73

APPENDIX C 

Capital 

Works 

Area 

Public Furniture 


Project 

Cost 



Major 

Works 

Grants 



Cash 

Borrowings 

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

Bus Shelters 25 0 25 0 0 0 0 0 25 0 

Lighting Sporting Facilities 70 0 70 0 0 0 0 0 70 0 

Parks/Street Seats and Benches 285 0 285 0 0 0 0 0 285 0 

Playgrounds 425 0 425 0 0 0 0 0 425 0 

Poppet Heads, Statues and Monuments 90 0 90 0 0 0 0 25 65 0 

Waste Services (Bins) 140 70 70 0 0 0 0 0 140 0 

Total Public Furniture 1,035 70 965 0 0 0 0 25 1,010 0 

Plant & Equipment 

Parking Control Equipment 160 0 160 0 0 0 0 0 160 0 

Plant and Equipment (General Fleet) 1,116 101 1,015 0 0 0 0 0 1,116 0 

Plant and Equipment (Major) 2,632 0 2,632 0 0 0 0 0 2,632 0 

Total Plant & Equipment 3,908 101 3,807 0 0 0 0 0 3,908 0 

Infrastructure 

Bridges 775 0 551 204 0 20 0 0 775 0 

Drainage 4,554 0 588 3,702 0 264 0 63 4,491 0 

Footpaths/Driveways 1,327 0 567 57 0 703 0 0 1,327 0 

Kerb and Channel 405 0 57 258 0 90 0 0 405 0 

Sealed Road Pavements 5,948 0 4,139 1,138 0 671 400 0 5,548 0 

Sealed Road Seals 4,300 0 4,300 0 0 0 0 0 4,300 0 

Unsealed Roads (Sheeting) 2,500 0 2,250 0 0 250 0 0 2,500 0 

Total Infrastructure 19,809 0 12,452 5,359 0 1,998 400 63 19,346 0 

Total Renewal 31,015 171 20,471 7,516 0 2,856 700 221 30,094 0 


APPENDIX C 

Capital 

Works 

Area 

NEW WORKS 


Project 

Cost 



Major 

Works 

Grants 



Cash 

Borrowings 

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

Building 

Buildings Other 10,869 0 0 834 0 10,035 5,049 15 4,540 1,265 

Child Care Properties 498 38 0 460 0 0 460 0 38 0 

Recreation Properties 1,271 1,089 0 130 0 52 0 323 948 0 

Total Building 12,638 1,127 0 1,424 0 10,087 5,509 338 5,526 1,265 


Information Technology 463 463 0 0 0 0 0 0 463 0 

Total IT and Furniture 463 463 0 0 0 0 0 0 463 0 


Landscaping 1,435 1,400 0 35 0 0 0 0 1,435 0 

Waste 475 475 0 0 0 0 0 0 475 0 

Recreation 3,881 0 0 3,538 0 343 605 182 359 2,735 

Other 1,400 1,100 0 300 0 0 300 0 1,100 0 

Total Land Improvements 7,191 2,975 0 3,873 0 343 905 182 3,369 2,735 


Bus Shelters 100 100 0 0 0 0 0 0 100 0 

Playgrounds 661 661 0 0 0 0 100 50 511 0 

Waste Services (Bins) 106 106 0 0 0 0 58 0 48 0 

Total Public Furniture 867 867 0 0 0 0 158 50 659 0 


APPENDIX C 

Capital 

Works 

Area 



Project 

Cost 



Major 

Works 

Grants 



Cash 

Borrowings 

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

Drainage 976 976 0 0 0 0 0 976 

Footpaths/Driveways 400 400 0 0 0 0 130 270 

Lighting 6,246 0 0 0 6,246 4,590 0 1,656 

Sealed Road Pavements 1,869 869 0 1,000 0 1,000 0 869 

Sealed Road Seals 557 557 0 0 0 0 507 50 

Total Infrastructure 10,048 2,802 0 1,000 0 6,246 5,590 637 3,821 0 

Total New 31,206 8,234 0 6,297 0 16,675 12,162 1,207 13,837 4,000 

GRAND TOTAL 62,221 8,405 20,471 13,813 0 19,530 12,862 1,428 43,931 4,000 


Capital Works Program (Detailed) 

Capital 

Council 

Works 


Plan 

Area 

RENEWALS 

Building 

BBQs 

BBQ Maintenance Works 3.1 

Bendigo Trust 

Bendigo Trust Infrastructure Projects 3.4 

Buildings Other 

Allingham St Drill Hall - exterior painting 3.1 

Asbestos Audits & Removal Program 3.6 

Boardwalk Cafe - Structural 3.1 

Building Accessibility Audits & Upgrades 3.6 

Building Security and Access Upgrade 3.6 

Building Signage 3.6 

Council Properties Improvements/Upgrade 3.1 

Crook St/McIvor Rd Rotary Park - switchboard replacement 3.1 

Environmental Sustainability Initiatives 3.6 

Essential Safety Measures 3.6 

Future Works Planning 3.1 

Investigate Structural Cracking Issues - Various 3.6 

Kangaroo Flat Rotary Building 3.1 

Kitchen & Kiosk Upgrade & Repair Works Community Venues 3.6 

Livestock Exchange - internal painting 3.1 

Office Accommodation upgrade and improvement works 3.1 

Safety Glazing - Pre Schools and Child Care Centre 3.6 

Thermal Imaging 3.1 

Child Care Properties 

Annie Galvin Child Care Centre - Shed 3.6 

Havilah Road Preschool, Long Gully - Various Works 3.6 

Mews Central Bendigo Works 3.6 

South Bendigo Preschool - Various Works 3.6 

Heritage Properties 

Australian Manchester Unity Hall - Concept Design 3.3 

Bendigo Art Gallery - BMS & Reed Switch Security System 3.2 

Bendigo Art Gallery - Boiler replacement 3.2 

Bendigo Art Gallery - VESDA System and Fire Panel 3.2 

Bendigo Town Hall External Render 3.2 

California Gully Mechanics Institute - Various Works 3.3 

Capital Theatre - Air-conditioning system – Upgrade 3.2 

Capital Theatre - Commercial kitchen upgrade 3.2 

Chinese Museum - Boiler Replacement and Control system 3.2 

Chinese Museum - minor refurbishment of toilets 3.2 


Capital 

Council 

Works 


Plan 

Area 

Heritage Properties (Continued) 

Gasworks Retort House brick repairs and repointing 3.3 

Gasworks - Structural stabilisation works to Purifier Shed 3.3 

Heathcote Council Offices - Office Accommodation 3.3 

Heritage Building Works 3.3 

Huntly Shire Hall Works 3.3 

Joss House - main temple 3..2 

Longlea Former School building 3.3 

Old Fire Station roof and gutter repairs 3.3 

Public Toilets 

Kennington Reservoir - Design for public toilet 3.1 

Public Toilets - Refurbishment 3.1 

Recreation Ancillary Structures 

Improvements to Structures in Recreational Facilities 3.1 

Harry Trott Recreation Reserve Training Lights 3.1 

North Bendigo Football/Netball Lighting Upgrade 3.1 

Shadforth Park Training Lights 3.1 

Recreation Properties 

Improvements at Various Recreation Reserves 3.1 

Ironbark Tennis Club/Hall - renewal of facility 3.1 

Ken Wust Community Upgrade Works - Design 3.1 

Long Gully Swimming Pool Rehabilitation Works 3.1 

Longlea Recreation Reserve Upgrade & Expansion 3.1 

Park Road Hall, Tom Flood - renewal of facility 3.1 

Peppercorn Park, Longlea Power 3.1 

QEO - Concept/design only of toilets, kiosk, entry 3.1 

Removal of Surplus Assets 3.1 

Small Towns Recreation Reserves - Various Location 3.1 

Spring Gully Tennis Club - Detailed design 3.1 

Swimming Pool Upgrades 3.1 

Upgrade Coaches Boxes and Shelters 3.1 

Upgrade Regional & State Rec Facilities 3.1 


Capital 

Works 

Area 


Council 

Plan 


Furniture and Office Equipment 

Furniture & Equipment - Purchase 3.1 

Information Technology 

Asset Management Software 3.1 

Corporate Planning, Performance Monitoring Software 3.1 

Network Switch Replacements 3.1 

Replacement Personal Computers 3.1 

Surveillance Equipment (CCTV) 3.1 

Uninterruptable Power Supply 3.1 

Wireless network upgrade 3.1 

The Capital - Wireless Microphone System 3.1 


Airport Works 

Bendigo Airport Taxiway Works 3.1 

Livestock Exchange 

Livestock Exchange Pavement Renewal 3.1 

Recreation Hard Surfaces 

Albert Roy Tennis - Survey and Design 3.1 

Athletics Track Repairs 3.1 

Harry Trott Tennis/Netball - Survey and Design 3.1 

Strathdale Tennis/Netball - Survey and Design 3.1 

Sporting Surfaces (Soft Surfaces) 

Irrigation System Replacement Program 5.1 

Sportsfield Improvements 5.1 


Bus Shelters 

Bus Shelters - Urban & Rural 3.1 

Lighting Sporting Facilities 

Lighting Sporting Facilities 3.1 

Parks/Street Seats and Benches 

Installation and Replacement of Park and Stret Furniture 3.1 

Playgrounds 

Landale Drive Renewal 3.2 

Magellan Cres Renewal 3.2 

Strathdale Park Renewal 3.2 

Playgrounds Upgrades 3.2 


Capital 

Council 

Works 


Plan 

Area 

Public Furniture (Continued) 

Poppet Heads, Statues and Monuments 

Statue and Monument Renewal 3.1 

Refurbishment of Fountains and Water Features 3.1 

Waste Services (Bins) 

Mobile Bin Replacement 5.1 

Plant & Equipment 

Parking Control Equipment 

Parking Ticket Machine Purchase 3.1 

Plant and Equipment (General Fleet) 

Plant Replacement (General Fleet) 3.1 

Plant and Equipment (Major) 

Plant Replacement Program 3.1 


Bridges 

Chapel Street 3.1 

O'Connell Drive 3.1 

Wilsons Road 3.1 

Various Bridge Works 3.1 

Drainage 

Abel St / Deborah Street 3.1 

Alder Street / Weir Court 3.1 

Darling St Eaglehawk 3.1 

Frederick St Bendigo 3.1 

Graham St Kangaroo Flat 3.1 

High St Lansell Plaza Outfall 3.1 

McLachlan Street 3.1 

Michael St East Bendigo 3.1 

Napier St White Hills 3.1 

Osborne Street / Friswell Avenue 3.1 

Panton St Pits & Pipes 3.1 

Panton St, Pip Upgrade 3.1 

Poulston St Long Gully 3.1 

Stewart St North Bendigo 3.1 

Various Drainage Construction 3.1 


Capital 

Council 

Works 


Plan 

Area 

Footpaths/Driveways 

High Street Golden Square 3.1 

St Aidans Rd 3.1 

Sullivans Rd 3.1 

Various footpath works 3.1 

Kerb and Channel 

Inglewood St Raywood 3.1 

Retail Activity Centres 3.1 

Minor Kerb Extensions 3.1 

Sealed Road Pavements 

Decorative streetlight replacement 3.1 

Queen Street Pedestrian Signals 3.1 

Road Work - Mitchell Street, Bendigo 3.1 

Road Works Major Patching Various 3.1 

Roadworks Lockington Rd Hunter 3.1 

Roadworks Taylor St Epsom 3.1 

Roundabout Olympic Parade Kangaroo Flat 3.1 

Minor road extensions / renewals 3.1 

Sealed Road Seals 

Various Local Roads Final Seals 3.1 

Various Roads - Reseals and Asphalt Resurfacing 3.1 

Median Roundabout and Traffic Island Treatments 3.1 

Unsealed Roads (Sheeting) 

Road Renewals - Unsealed Roads 3.1 

Shoulder Re-sheeting 3.1 

NEW WORKS 

Building 

Buildings Other 

Bendigo Community Theatre 2.1 

Bendigo RSL Soldiers Memorial Hall -Detailed Design 3.1 

California Gully Mechanics Institute - Amenities 3.1 

CoGB Building Energy Efficiency Upgrade 3.1 

Child Care Properties 

Strathfieldsaye Pre-School Maternal & Child Health Centre 3.6 

Axedale Preschool - Boundary Re-alignment 3.6 


Capital 

Council 

Works 


Plan 

Area 

Recreation Properties 

Long Gully Splash Park - Landscaping 2.1 

Bendigo Indoor Aquatic leisure and Wellbeing Complex 2.1 

Maiden Gully Catholic School Oval and Pavilion Design 3.1 

Barrack Reserve Pavilion - Detailed Design 3.1 

Bendigo Stadium Extension - Design. 3.1 

Bendigo Tennis Centre Facilities - Schematic Design 3.1 

Spring Gully Change Rooms - Detailed Design 3.1 

Ewing Park Stage 2 - Construction 3.1 

Dower Park Social Rooms 3.1 


Information Technology 

Project Management System 1.6 

Accounts Payable Scanning Software 1.5 

Ticketing and Venue Management 3.2 

Maternal Child and Health Data Management System 3.1 


Landscaping 

Bendigo Community Theatre Streetscape Works 2.1 

Eaglehawk Town Hall Landscaping 3.1 

Waste 

Eaglehawk Landfill Rehabilitation Design and Approvals 3.1 

Eco Cell Development 3.1 

Recreation 

Eaglehawk Open Space Precinct Master plan Implementation 3.1 

Marong Netball and Tennis 3.1 

Dower Park Caravan Park Site Rehabilitation 3.1 

Other 

O'Keefe Rail Trail - Final Stage Construction 3.1 

Stormwater Quality Works 3.1 

Bendigo Botanic Gardens Master Plan Implementation 3.1 

Wolstencroft Reserve 3.1 


Capital 

Council 

Works 


Plan 

Area 


Bus Shelters 

Bus Shelters - Urban & Rural 2.2 

Playgrounds 

Strathfieldsaye Recreation Reserve Playspace 3.2 

Precinct 4 Maiden Gully Playspace 3.2 

Janelle Drive Local Play Space 3.2 

Waste Services (Bins) 

360L Recycle Bins Purchase 5.1 

Public Recycling Bins 5.1 


Drainage 

Development Related Drainage 3.1 

Footpaths/Driveways 

Strathfieldsaye Bike Path - Construction 3.1 

Lighting 

Streetlight Upgrade 3.1 

Sealed Road Pavements 

Roads and Paths Universal Access Program. 3.1 

Roads to Recovery 3.1 

Bendigo Airport Redevelopment Runway Construction 3.1 

East Bendigo Road Link (Midland to McIvor Highways) 4.2 

Sealed Road Seals 

Gravel Road - Redesdale 3.1 

Huntly Fosterville Road 3.1 


APPENDIX D 

Appendix D - Maps 

D – 1: Business Land A 

D – 2: Business Land C 

Maps attached. 


APPENDIX D 

D – 1 

COMMERCIAL/INDUSTRIAL LAND A RATE 

Commercial/Industrial Land A 


APPENDIX D 

COMMERCIAL/INDUSTRIAL LAND C RATE 

Commercial/Industrial 

Land C 


APPENDIX E 

Appendix E – Capital Evaluation Framework 

Introduction 

The Capital Works Evaluation Framework is a means of setting priorities within the Capital Works Program 

that addresses the strategic and service delivery needs of Council and the Community. Council sets the 

amount available for Capital Works each year and this is guided by the Long Term Financial Plan. 

As per the diagram below, the total Capital Works Budget is split between two core components, Renewal 

and Non-Renewal. Currently the amount required for Renewal is set by the financial asset depreciation and 

prioritised by asset condition and Asset Management Plans (AMP) where available. The remaining amount is 

available for Non-renewal projects which require a Business Case and are prioritised via an assessment 

criteria. 

Renewals 

Depreciation 

Business Case 

AMPs Renewal $ 

Non- 

Renewal $ 

Criteria & 

Ranking 

The largest component of the annual Capital Works budget is devoted to ensuring that existing assets 

continue to deliver the service standards expected of them by the community. Work is continually 

undertaken to check, assess and maintain the status of these assets. 

The Renewal component of the annual budget is currently determined by the amount of depreciation 

recorded for CoGB assets as per the Australian Accounting Standards. Similarly, the total Renewal budget is 

divided between each of the asset classes so that each asset class receives Renewal funding in line with the 

amount of depreciation it recorded. 

Asset Managers then prioritise which works to schedule within the renewal budget based on a range of asset 

management tools and metrics. This includes: 

Asset management plans 

Condition assessments 

Service standards 

Community feedback 

Given that this work is undertaken on existing assets, it is based on assessments of the condition of those 

assets and the Asset Managers are best placed to make recommendations on those assessments, a Business 

Case is not required for Renewal budget submissions. 

The Renewal project priority lists and associated costs are provided to Council to review as part of the 

budget approval process. 

Non-Renewal Business Case Requirement 

A Business Case is required for Non-Renewal Capital Works Budget bids. 

For projects over $3M, the Major Capital Works Budget Submission Policy applies which outlines the level 

of detail required for the Business Case. 


APPENDIX E 

Assessment Approach 

The key principles of the assessment approach are: 

New Capital Works, Expansion and Upgrade project bids require a business case which will be 

scored against a criteria to determine the priority of each bid. 

There is no separation of asset or project type with all New Capital Works, Expansion and Upgrade 

projects competing for funds from a “Single Bucket”. 

This establishes the relative priority of all Capital Works project bids submitted. The core requirement of 

this approach is to be able to compare projects which are for vastly different types of assets, e.g. comparing 

the priority of a road to the priority of tennis court lighting or the expansion of a Child Care facility. 

Evaluation Committee 

The evaluation process was undertaken by a committee of senior managers comprised of representatives 

from across the organisation. The managers have a direct interest in Council’s asset management, service 

delivery planning and financial planning from an asset owner, maintainer or user perspective. 

Evaluation Criteria 

The evaluation criteria used in this framework is based on three key elements which have been weighted in 

importance: 

A. Governance 40% 

B. Financial 40% 

C. Deliverability 20% 

These criteria may contain multiple sub criteria which are described below. 

Part A: Governance 

This evaluation criterion has three sub criteria: 

1. Statutory/Regulatory/Council Resolution (Y/N) 

2. Council Plan/Strategies/Master Plans (60%) 

3. Risk (40%) 

A1. Statutory/Regulatory/Council Resolution 

This sub-criterion recognises that there are some projects that must be undertaken to comply with Federal 

or State Legislation/Regulations and that some projects may be directed by a Council Resolution. 

A2. Council Plan/Strategies/Master Plans 

This sub-criterion recognises that priority should be given to projects that are aligned with the Council Plan, 

existing Strategies or Master Plans. 

A3. Risk 

This sub-criterion recognises that Risk plays a significant role in determining the priority of project. Scoring 

in this criteria is based on the risk to the organisation of not undertaking the project (rather that it being a 

risky project to undertake). 

A risk assessment must be undertaken as per the CoGB standard risk assessment process and be submitted 

with the Business Case. 

Part B: Financial 

This evaluation criterion has one element which is Cost Benefit, however this is derived from multiple 

components. The criterion establishes a score based on the importance or benefit of the project to the 

community and the organisation which is then factored against the cost and possible return on investment of 

the project. This provides for a score which favours projects with a combination of both a high community 

benefit and lower net capital cost to Council. 


APPENDIX E 

For the 2014/2015 financial year these factors have been defined as the following: 

Community Health and Wellbeing. 

Project outcomes that specifically encourages activity which promotes mental and physical health. 

Heritage 

Preservation and/or promotion of the municipality's physical, cultural and natural heritage. 

Economic Development 

Infrastructure projects that promote/enable investment, business opportunity and business security within 

the municipality. The focus is on the potential additional economic activity generated in the community, not 

a direct return on investment to CoGB. 

Environment 

Projects specifically targeting a reduction in the communities or CoGB’s impact on the environment. This 

includes direct carbon reduction initiatives, new projects to repair/reduce environmental damage, 

environmentally sensitive design and community leading initiatives that promote better community behaviour 

toward the environment. 

Inclusion/Access 

Projects providing additional services or better access to existing services for members of the public with 

physical or mental disability. 

Service Gap 

Projects specifically targeted at resolving a gap in an existing service or the establishment of a new service. 

This includes changes in the quality of service levels and increases in service demand. 

Liveability 

Projects that contribute to achieving the vision of Bendigo becoming the most liveable Regional City in 

Australia. This includes infrastructure that differentiates the municipality as an 

affordable/comfortable/connected place to live and provides for modern and future lifestyle and cultural 

choices. 

Social Equity 

Projects contributing to the fair, just and equitable distribution of services across the municipality. This 

includes investment in small towns and the suburbs to ensure that development outside the defined area of 

the CBD is appropriately promoted. 

Part C: Deliverability 

This evaluation criterion has two sub criteria: 

1. Project Plan (50%) 

2. Costing Quality (50%) 

B1. Project Plan 

This sub criterion recognises that all projects, no matter how simple, should have at least a basic plan for 

when work should begin, how long it will take and when it should finish. The more complex the project is, 

the more detailed the plan should be to ensure all the tasks, and resources required for the job are 

understood and scheduled. 

B2. Costing Quality 

This sub criterion recognises that the key starting point to achieving the completion of a project to budget is 

to ensure that the costs the budget is based on are as accurate as possible. 


APPENDIX F 

Appendix F - Glossary of Terms 

Term 

Accounting Standards 

Annual budget 

Budgeted 

comprehensive income 

statement 

Annual report 

Definition 

Accounting standards are issued from time to by the professional 

accounting bodies and are applicable to the preparation of general 

purpose financial reports. 

Plan under section 130 of the Act setting out the services to be 

provided and initiatives to be undertaken over the next 12 months and 

the funding and other resources required. 

The budgeted comprehensive income statement shows the expected 

operating result in the forthcoming year compared to the forecast 

actual result in the current year. The budgeted income statement 

should be prepared in accordance with the requirements of AASB101 

Presentation of Financial Statements and the Local Government Model 

Financial Report. 

The annual report prepared by Council under sections 131, 132 and 

133 of the Act. The annual report to the community contains a report 

of operations and audited financial and performance statements. 

Annual reporting requirements Annual reporting requirements include the financial reporting 

requirements of the Act, Accounting Standards and other mandatory 

professional reporting requirements. 

Asset renewal 

Asset upgrade 

Asset expansion 

Borrowing strategy 

Budgeted balance sheet 

Budgeted statement of 

cash flows 


changes in equity 

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 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. 

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 asset base. 

Expenditure which extends an existing asset, at the same standard as is 

currently enjoyed by residents, to a new group of users. Expansion 

expenditure is discretional which increases future operating and 

maintenance costs because it increases council’s in the asset base, but 

may be associated with additional revenue from the new user group. 

A borrowing strategy is the process by which the Council’s current 

external funding requirements can be identified, existing funding 

arrangements managed and future requirements monitored. 

The budgeted balance sheet shows the expected net current asset, net 

non-current asset and net asset positions in the forthcoming year 

compared to the forecast actual in the current year. The budgeted 

balance sheet should be prepared in accordance with the requirements 

of AASB 101 - Presentation of Financial Statements and the Local 

Government Model Financial Report. 

The budgeted statement of cash flows shows the expected net cash 

inflows and outflows in the forthcoming year in the form of 

reconciliation between opening and closing balances of total cash and 

investments for the year. Comparison is made to the current year’s 

expected inflows and outflows. The budgeted cash flow statement 

should be prepared in accordance with the requirements of AASB 107 

Statement of Cash Flows and the Local Government Model Financial 

Report. 

The budgeted statement of changes in equity shows the expected 

movement in Accumulated Surplus and reserves for the year. The 

budgeted statement of changes in equity should be prepared in 

accordance with the requirements of AASB 101 - Presentation of 


APPENDIX F 

Term 

Definition 

Financial Statements and the Local Government Model Financial Report. 

Budget preparation requirement 

Capital expenditure 

Under the Act, a Council is required to prepare and adopt an annual 

budget by 31 August each year. From the 2015/16 budget, adoption will 

need to take place by 30 June. 

Capital expenditure is relatively large (material) expenditure that 

produces economic benefits expected to last for more than 12 months. 

A predetermined ‘threshold’ may be used which indicates the level of 

expenditure deemed to be material in accordance with Council’s policy. 


capital works 

Capital expenditure includes renewal, expansion and upgrade. Where 

capital projects involve a combination of renewal, expansion and 

upgrade expenditures, the total project cost needs to be allocated 

accordingly. 

The capital works budget shows the expected internal and external 

funding for capital works program and the total proposed capital works 

program for the forthcoming year with a comparison with forecast 

actual for the current year. 

Capital works program Capital works projects that will be undertaken during the 2014/2015 

year. 

Carry forward capital works 

Council Plan 

Financial sustainability 

Financing activities 


Infrastructure strategy 

Internal funding sources 

(Analysis of capital budget) 

Internal influences in the 

preparation of a budget 

Investing activities 

Key assumptions 

Legislative framework 

Carry forward capital works are those that that are incomplete in the 

current budget year due to unavoidable delays and will be completed in 

the following budget year. 

Means a Council Plan prepared by the Council under Section 125 of the 

Local Government Act 1989. This document sets out the strategic 

objectives of the Council and strategies for achieving the objectives as 

part of the overall strategic planning framework required by the Act. 

A key outcome of the strategic resource plan. Longer term planning is 

essential in ensuring that a Council remains financially sustainable in the 

long term. 

Financing activities means those activities which relate to changing the 

size and composition of the financial structure of the entity, including 

equity, and borrowings not falling within the definition of cash. 

Physical assets of the entity or of another entity that contribute to 

meeting the public’s need for access to major economic and social 

facilities and services. 

An infrastructure strategy is the process by which current 

infrastructure and ongoing maintenance requirements can be identified, 

budgeted capital works implemented and future developments 

monitored. The key objective of an infrastructure strategy is to maintain 

or preserve Council’s existing assets at desired condition levels. If 

sufficient funds are not allocated to asset preservation then Council’s 

investment in those assets will reduce, along with the capacity to deliver 

services to the community. 

Internal sources relate to cash and investments held in reserves or 

which are uncommitted and cash that will be generated from the 

operations of Council during the budget year. The latter should equate 

to the cash inflows from operating activities less capital revenue. 

Matters arising from Council actions over which there is some element 

of control (eg approval of unbudgeted capital expenditure). 

Investing activities means those activities which relate to acquisition and 

disposal of non-current assets, including property, plant and equipment 

and other productive assets, and investments not falling within the 

definition of cash. 

When preparing a budgeted balance sheet of financial position, key 

assumptions upon which the statement has been based should be 

disclosed in the budget to assist the reader when comparing 

movements in assets, liabilities and equity between budget years. 

The Act, Regulations and other laws and statutes which set a Council’s 


APPENDIX F 

Term 

Definition 

governance and reporting requirements. 

Local Government 

The objective of these Regulations, made under section 243 of the Local 

(Planning and 

Government Act 1989 and which come into operation on 18 April 

Reporting) Regulations 

2014, is to prescribe: 

2014 

(a) The content and preparation of the financial statements of a Council 

(b) The performance indicators and measures to be included in a 

budget, revised budget and annual report of a Council 

(c) The information to be included in a Council Plan, Strategic Resource 

Plan, budget, revised budget and annual report 

(d) Other matters required to be prescribed under Parts 6 and 7 of the 

Act. 

New assets 

New assets do not have any element of expansion or upgrade of 

existing assets. New capital expenditure may or may not result in 

additional revenue for Council and will result in an additional burden for 

future operation, maintenance and capital renewal. 

Non-financial resources 

Resources of a non-financial nature (such as human resources, 

information systems and processes, asset management systems) which 

are consumed by a Council in the achievement of its strategic resource 

plan goals. 

Operating activities 

Operating activities means those activities that relate to the provision of 

goods and services. 

Operating expenditure 

Operating expenditure is defined as consumptions or losses of future 

economic benefits, in the form of reductions in assets or increases in 

liabilities; and that result in a decrease in equity during the reporting 

period. 

Operating performance (Impact This statement shows the expected operating result as compared to the 

of current year on 2014/20153 budget result in the current year separating operating and capital 

budget 

components of revenue and expenditure. 

Operating revenue 

Operating revenue is defined as inflows or other enhancements or 

savings in outflows of future economic benefits in the form of increases 

in assets or reductions in liabilities and that result in an increase in 

equity during the reporting period. 

Rate structure (Rating strategy) Site value (SV), capital improved value (CIV) or net annual value (NAV) 

are the main bases upon which rates will be levied. These should be 

detailed in the budget statement. 

Rating strategy 

A rating strategy is the process by which the Council’s rate structure is 

established and how the total income generated through rates and 

charges is allocated across properties in the municipality. Decisions 

regarding the quantum of rate levels and increases from year to year are 

made as part of Council's long term financial planning processes and 

with consideration of Council's other sources of income and the 

planned expenditure on services and works to be undertaken for its 

community. 

Regulations Local Government (Planning and Reporting) Regulations 2014. 

Revised budget 

The revised budget prepared by a Council under section 128 of the Act. 

Section 128 of the Act permits a Council to prepare a revised budget if 

circumstances arise which cause a material change in the budget and 

which affects the financial operations and position of the Council. 

Road Management Act 

The purpose of this Act which operates from 1 July 2004 is to reform 

the law relating to road management in Victoria and to make relating 

amendments to certain Acts, including the local Government Act 1989. 

Services, Initiatives and 

Section 127 of the Act requires a budget to contain a description of the 

Major Initiatives 

services and initiatives to be funded by the budget, along with a 

statement as to how they will contribute to the achievement of the 

Council’s strategic objectives as specified in the Council Plan. 

The budget must also include major initiatives, being initiatives identified 

by the Council as priorities to be undertaken during the financial year. 

The services delivered by Council are those undertaken to meet the 


APPENDIX F 

Term 

Definition 

needs of the community as reflected in the Council Plan. They tend to 

be ongoing in nature and have internal and external customers. 

Initiatives are tasks or actions that are once-off in nature and lead to 

improvements in service performance or service levels. 

Statutory reserves 

Strategic planning framework 

Strategic resource plan (SRP) 

Major initiatives are those initiatives that the Council has identified as 

priorities. The major initiatives should be limited to only those 

initiatives that will have a significant impact on the operations of the 

Council and will be of interest to the reader. 

Statutory reserves are funds set aside for specified statutory purposes 

in accordance with various legislative and contractual requirements. 

These reserves are not available for other purposes. 

A “community owned” document or process which identifies the long 

term needs and aspirations of the Council, and the medium and short 

term goals and objectives which are framed within the long term plan. 

Section 125(2)(d) of the Act requires that a Council must prepare and 

approve a Council Plan that must include a strategic resource plan 

containing the matters specified in Section 126. 

Section 126 of the Act states that. 

-the strategic resource plan is a plan of the resources required to 

achieve the council plan strategic objectives 

-the strategic resource plan must include the financial statements 

describing the financial resources in respect of at least the next four 

financial years 

-the strategic resource plan must include statements describing the nonfinancial 

resources including human resources in respect of at least the 

next four financial years 

-the strategic resource plan must take into account services and 

initiatives contained in any plan adopted by council and if the council 

proposes to adopt a plan to provide services or take initiatives, the 

resources required must be consistent with the strategic resource plan 

-council must review their strategic resource plan during the 

preparation of the council plan 

-council must adopt the strategic resource plan not later than 30 June 

each year and a copy must be available for public inspection at the 

council office and internet website. 

The Act Local Government Act 1989 

Unrestricted cash and 

investments 

Valuation of Land Act 1960 

In preparing the strategic resource plan, councils should comply with 

the principles of sound financial management as prescribed in the Act 

being to: 

-prudently manage financial risks relating to debt, assets and liabilities 

-provide reasonable stability in the level of rate burden 

-consider the financial effects of council decisions on future generations 

-provide full, accurate and timely disclosure of financial information. 

In addition to section 126 of the Act, parts 2 and 3 of the regulations 

also prescribe further details in relation to the preparation of a strategic 

resource plan. 

Unrestricted cash and investments represents funds that are free of all 

specific Council commitments and are available to meet daily cash flow 

requirements and unexpected short term needs. 

The Valuation of Land Act 1960 requires a Council to revalue all 

rateable properties every two years.

City of Greater Bendigo Annual Budget 2014/2015

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