Annual Report 2003 - Wollongong City Council - NSW Government
Annual Report 2003 - Wollongong City Council - NSW Government
Annual Report 2003 - Wollongong City Council - NSW Government
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the city of wollongongNinth largest city in Australia.The name <strong>Wollongong</strong> originated fromthe aboriginal word Woolyungah meaning‘Five Islands’.Renowned for its pristine beaches,stunning escarpment and coastline.contactOver 30 different languages are spokenhere, making <strong>Wollongong</strong> one ofAustralia’s foremost multicultural cities.Home to the University of <strong>Wollongong</strong>,Australia’s University of the Year for 2000,2001 and 2002.address <strong>Wollongong</strong> <strong>City</strong> <strong>Council</strong>, 41 Burelli Street, <strong>Wollongong</strong>, <strong>NSW</strong> 2500.website www.wollongong.nsw.gov.auemail council@wollongong.nsw.gov.augeneral enquiries 02 4227 7111 (including emergency after hours assistance)Population is approaching 192,000.Largely known for its history in heavyindustry, such as coal and steel.Key growth industries are tourism,education, information technology andtelecommunications.wollongong city council <strong>2003</strong>-04 annual reportwollongong city council<strong>2003</strong>-04 annual reportwollongong city council’s <strong>2003</strong>-04 annual reportThe annual report is our key accountability document. It represents our fullcommitment to open and honest disclosure to our local community andother key stakeholders.Nexus Between Corporate Planand <strong>Annual</strong> <strong>Report</strong>The <strong>2003</strong>-04 annual report, along withits companion document the state ofthe environment report, are producedto account for transparency in localgovernment. The programs and activitiesdetailed therein are in response to objectivesand performance targets identified withinthe corporate plan <strong>2003</strong>-07, in addition tomeeting statutory reporting responsibilities.These key accountability documents set outto identify the directions and priorities for ourorganisation at the commencement of eachfinancial year (corporate plan) and assessingour performance, either successful orotherwise, at year’s end, (annual report).<strong>Annual</strong> <strong>Report</strong>ing StrategyThe objectives for the annual report areto demonstrate <strong>Council</strong>’s transparency,accountability and performance inkey operational areas and to highlightachievements in delivering sound economic,social and environmental outcomes for<strong>Wollongong</strong>. The document providescomprehensive corporate governanceinformation, as well as detailed auditedfinancial statements. The <strong>2003</strong>-04 annualreport also features a ground-breakingtriple bottom line and ecological footprinttable that lays the foundations for factualand measurable results on the road tosustainability.Key StakeholdersThe <strong>2003</strong>-04 annual report seeks to informratepayers, local community, visitors,investors, government agencies and otherinterested parties of our progress duringthe year in review.Theme on EnvironmentalSustainabilityThe theme for this year’s annual reportis sustainability. A stylised city icon, the<strong>Wollongong</strong> lighthouse, is featured onthe cover, along with the region’s mostsignificant natural assets: the ocean andescarpment. These not only provide aphysical boundary but also encapsulatethe true essence of <strong>Wollongong</strong> - a city setbetween the mountains and the sea, a cityof outstanding natural beauty. Environmentalmanagement and sustainability are keydrivers for all facets of our operations. Thisyear, for the first time, we have implementedthe Environmental Management Program inan effort to reduce our ecological footprinton <strong>Wollongong</strong>.Content and LayoutThe annual report is laid out into threedistinct sections, an executive summary,a detailed analysis of our performanceagainst key indicators and a financialreport. Information required under the Local<strong>Government</strong> Act is also provided. The insidefront cover highlights a groundbreakingdevelopment in our reporting - a triplebottom line sustainability scorecard.Distribution of <strong>Annual</strong> <strong>Report</strong>The annual report is distributed to allcommunity, business and special interestgroups in the <strong>Wollongong</strong> region. Copiesare also forwarded to the Department ofLocal <strong>Government</strong>, public libraries andother organisations. A printed version of thereport is available free of charge from theinformation counter at our administrationbuilding or by visiting our central or branchlibrary network. The report can also bedownloaded in PDF format from ourwebsite: www.wollongong.nsw.gov.auYour Feedback is InvitedThe content of the annual report is reviewedannually with invaluable feedback providedthrough our participation in annual reportingawards. Since our inaugural report someyears ago, we have featured regularly inpresentations by the Australasian <strong>Report</strong>ingAwards in either bronze, silver or gold awardcategories. Last year, we received a SilverAward for our 2002-03 <strong>Annual</strong> <strong>Report</strong>. Wewill continue to improve the standard of ourreporting through participation in the annualreporting awards and using the invaluablefeedback received from these processes.We are always pleased to hear how thereport can be improved. A reader surveyis enclosed with this document and readerfeedback will be much appreciated.
snapshot of resultsGovernanceEnvironmentalSocialEconomic1999-00 2000-01 2001-02 2002-03 <strong>2003</strong>-04Total number of residents 186,608 187,003 191,049 191,254 191,602Total number of ratepayers 69,354 70,293 71,238 72,318 72,925Rates paid at year’s end $66.09m $68.19m $70.07m $73.33m $76.40mAverage general residential rate $700.00 $718.38 $734.37 $758.97 $784.18Increase in average rate 1.97% 2.62% 2.23% 3.34% 3.32%Population and ratepayer numbers have remained relatively stable. Rates continue to be our major source of revenue.Untied grants revenue $11.37m $12.29m $13.05m $14.12m $14.47mSpecific purpose grants revenue $7.75m $8.29m $7.94m $5.65m $3.02mAvailable working funds balance $8.31m $7.98m $8.99m $1.17m $1.57mDebt servicing ratio at year’s end 2.70% 3.10% 1.90% 2.30% 1.93%<strong>Wollongong</strong> <strong>City</strong> <strong>Council</strong> is proud of its fiscal record. Current financial statements reflect strong performance.Number of development applications received 2,835 2,175 2,328 2,248 2,810Total lots created by subdivision 590 634 533 400 501There is increased economic activity in <strong>Wollongong</strong>. Investor confidence remains high.Illawarra Performing Arts Centre visitation 69,822 81,819 84,624 104,506 93,342<strong>Wollongong</strong> <strong>City</strong> Gallery visitation 37,839 38,984 37,537 37,981 39,630<strong>Wollongong</strong> Botanic Garden visitation 162,897 195,064 123,277 132,791 200,336Beaton Park Leisure Centre usage 447,525 433,450 419,645 415,189 369,256Registered library borrowers 79,192 83,092 81,242 77,899 81,756Pool attendances 919,439 1,031,572 1,232,069 1,100,787 841,088Number participating in youth activities - - 13,977 12,159 15,019Community transport passenger trips 49,801 45,962 51,502 46,983 56,958Diversity, scope and extent of our operations contribute to the enviable lifestyle enjoyed by the <strong>Wollongong</strong> community.Recreation & culture cost per resident $140.77 $154.47 $153.54 $162.85 $140.08Library service cost per resident $21.66 $22.55 $28.05 $25.35 $24.01Community service cost per resident $17.12 $16.48 $22.04 $24.95 $24.82Surveys confirm the general alignment of services against community expectations. Some key services were delivered at reduced cost.Environmental protection cost per resident $6.62 $9.53 $7.61 $8.36 $10.51<strong>Annual</strong> domestic waste fee per occupied residence $140 80ltr $147120ltr $184240ltr $28580ltr $149120ltr $187240ltr $29080ltr $155120ltr $195240ltr $30580ltr $125120ltr $165240ltr $275Increased resources are being committed to environmental improvement. Greater financial incentives offered to reduce domestic waste.Number of garbage services provided 69,945 71,098 72,032 73,063 73,054Number of dog licenses issued 10,941 10,600 11,370 11,850 13,179Hectares of public open space 2,658 2,680 2,706 2,776 2,791Plant distribution from botanic garden 49,931 51,698 45,900 34,888 40,980Groups involved in Rise & Shine Clean Up Campaign 103 96 91 101 108Rubbish collected during Clean Up Australia Day 18 tonnes 14 tonnes 15 tonnes 31 tonnes 29 tonnesEnvironmental management and sustainability are continuing priorities. Community participation rates remain encouraging.Administration cost per resident 310.45 330.45 341.45 322.18 343.11Incidence of public liability claims 15.1 14.9 16.9 13.2 11.2We remain at the forefront of local government best practice in several administration areas.Number of employees 1,023 1,065 1,087 1,092 1,135Staff turnover percentage 5.97% 5.88% 5.98% 5.61% 4.68%Number of workplace injuries 186 193 186 199 159Staff turnover is declining and, most importantly, due to our OH&SIM initiatives workplace injuries have fallen to a record low.
contents annual report 2004-03Executive summarySnapshot of ResultsIntroduction to <strong>Wollongong</strong> 1Who We Are 2Service Location 3Working Towards a Balanced Scorecard 4Year in Review 8Major Achievements 10Major Challenges 11Lord Mayor’s <strong>Report</strong> 12Overview From the CEO 13Elected Representatives 14Senior Management Structure 16Planning and <strong>Report</strong>ing Framework 18contentsPerformance Against ObjectivesCorporate Governance 20<strong>City</strong> Planning and Development 26Infrastructure 29Environment and Health 38Commercial Development 44Waste Management 48Recreation and Natural Resources 52Community and Cultural Services 57Library Services 63Organisational Services 66Environmental Management Program 73Financial <strong>Report</strong>Financial Statements Contents 76Financial Executive Summary 77Financial Overview 78Statement of Financial Performance 80Statement of Financial Position 81Statement of Changes in Equity 82Statement of Cash Flows 83Notes to Financial Statements 84Independant <strong>Report</strong> to <strong>Council</strong> 118Special Purpose Financial <strong>Report</strong>s 121Notes to the Special Purpose Financial <strong>Report</strong>s 126Independant Auditor’s <strong>Report</strong> to <strong>Council</strong> 128Special Schedules 129Local <strong>Government</strong> Act Requirements 137Glossary 150Local <strong>Government</strong> ActRequirements<strong>Wollongong</strong> <strong>City</strong> <strong>Council</strong> <strong>2003</strong>-04<strong>Annual</strong> <strong>Report</strong> was produced tocomply with the Local <strong>Government</strong>Act (1993). An index of theinformation required under the Actis included on the inside back cover.
introduction to wollongong executive summary 1looking forward. looking backWOLLONGONGAustralia’s ninth largest city islocated only 80 kilometres southof Sydney. The region occupiesa narrow coastal strip borderedby the Royal National Park to thenorth, Windang Bridge to the south,the Tasman Sea to the east andthe Illawarra escarpment to thewest. The city is renowned for itsmagnificent natural environment,ranging from untouched rainforeststo dramatic rocky sea cliffs andpristine sandy beaches.Our home. Our history.BeginningsThe name <strong>Wollongong</strong> originated from theAboriginal word woolyungah meaning fiveislands. Archeological evidence indicatesthat Aboriginals have lived here for at least30,000 years. Wodi Wodi is the tribe nameof the Aboriginal people of the Illawarra.European SettlementDr Charles Throsby first established asettlement here in 1815, bringing down hiscattle from the Southern Highlands to alagoon of fresh water located near SouthBeach. The earliest reference to <strong>Wollongong</strong>was in 1826, in a report written by JohnOxley, about the local cedar industry. Thearea’s first school was established in 1833,and just one year later the Surveyor-Generalarrived from Sydney to layout the townshipof <strong>Wollongong</strong> on property owned byCharles Throsby-Smith.Fledgling IndustryIn the early part of European settlement,most employment was in timber getting andland clearing for farming. By the late 1830’ssurplus produce from the region’s few farmswere shipped from <strong>Wollongong</strong> to Sydney. In1849, James Shoobert opened the first coalmine at Mount Keira. The developing coalindustry had a major impact on trade, withcoal carted from the mines to <strong>Wollongong</strong>harbour for export.Place of SteelThe local steel industry commenced in1927 with Charles Hoskins entering intoan agreement with the state governmentto build a steelworks at Port Kembla,thereby commencing a long history of steelproduction that still continues to this day.Operations began in 1930 with one blastfurnace of 800 tons capacity. In 1936, BHPacquired Australian Iron and Steel Limitedand production at Port Kembla increasedrapidly. The steel industry was a catalystfor growth for many decades, and laid thefoundations for the city’s economy, lifestyleand culture.Expanding <strong>City</strong>In 1947, <strong>Wollongong</strong> <strong>City</strong> <strong>Council</strong> wasincorporated. By 1954, the city’s populationhad expanded to 90,852. Thousands of skilledmigrants from all over the world arrived here inthe hope of finding employment. <strong>Wollongong</strong><strong>Council</strong> Chambers opened in 1956, inspiring arange of new developments and a broadenedeconomic base. In 1961, the <strong>Wollongong</strong>University College was established and twoyears later, the teacher’s college.Branching OutFollowing the economic downturn of theearly 1980’s, <strong>Council</strong> made a major effortto diversify the city’s industrial base. TheCrown Gateway Shopping Centre and<strong>Wollongong</strong> Mall were completed in 1987.Just one year later, <strong>Council</strong> moved into itsnew administration centre, with the IllawarraPerforming Arts Centre opening the sameyear. Some ten years on, the <strong>Wollongong</strong>Entertainment Centre commenced operations.Our home. Our lifestyle.Thriving Metropolis<strong>Wollongong</strong> today is very diversified.It is proud of its industrial background andis still acknowledged as one of Australia’sleading industrial centres. While steel andother manufacturing industries remain anessential part of the local economy, the cityhas long recognised the need to diversifyits economic base. The rapidly expandingtourism is now the region’s third largestindustry, taking advantage of the city’s naturalbeauty and superb lifestyle. Other emergingindustries include hospitality, informationtechnology and telecommunications.Focus on LearningEducation has long-played an important rolein the city’s development. The University of<strong>Wollongong</strong> is an innovative and dynamicinstitution, that enjoys an internationalreputation as a learning centre of excellence.This is evidenced by being awardedAustralian University of the Year for 2000,2001 and 2002.A Vibrant CommunityMore than anything else, it is the people of<strong>Wollongong</strong> that define its character. Thereis a strong sense of community and a richcultural heritage. Over 30 different languagegroups and 20 different religious beliefs arerepresented here, bringing with them traditionsand customs that add yet another dimensionto the increasingly sophisticated city.Our home. Our future.Living SustainablyWe recognise that the city of tomorrow musttake some responsibility for its past. While wetake great delight in our local environment,our ecological footprint has been heavy. Onlyrecently, have we begun to take serious stepsto reverse environmental degradation and tomanage our environment more responsibly.We must embrace a sustainable futureby addressing environmental issues andintegrating environmental management intoall business decisions.Embracing Change<strong>Wollongong</strong> is a centre for innovation. We leadthe way through cutting edge research intothermoplastics, bionics, robotics, polymers,molecular recognition and environmentalscience. We will continue to explore newopportunities to attract business to the region.New ChallengesChanging demographics present manychallenges. Our population is aging and withthis comes expectations that our servicesneed to be broadened. The supply of newhousing stock is decreasing as <strong>Wollongong</strong>rapidly runs out of space, and there is moreemphasis on multi-unit development and innercity living. The community is more aware ofthe impact of development and protectingthe character of local neighbourhoods. Thecity’s infrastructure is aging and demographicand socio-economic changes are evident.<strong>Council</strong> continues to show leadership byworking to enhance the economic, social andenvironmental fabric of our city. Our successwill pave the way for a sustainable future.
2 who we are executive summarywho we are<strong>Wollongong</strong> <strong>City</strong> <strong>Council</strong> wasincorporated in 1947 to serve thediverse needs of the city’s residents.It has grown to become one of thelargest local government authoritiesin Australia, servicing an areaof 713.93 square kilometres andproviding services and facilities to191,602 residents. Our corporatephilosophy is based on an overarchingframework that articulateswhat we want to achieve and howwe go about achieving it.Our visionTo be a community focused localauthority of excellence.Our missionTo enhance our community’s image,lifestyle and environment througheffective leadership, communityinvolvement and commitment toservice.Our valuesIn everything we do, we will always: Assess our community’s needs andrespond to them, Improve the quality of our services, Be an open and accessible organisation, Be fair and equitable, Act with honesty and integrity, Encourage teamwork and cooperation, Pursue creativity and innovation, Ask ourselves, ‘What is best for<strong>Wollongong</strong>?’Our corporate goalsThe corporate goals provide guidance toour employees in all facets of their activities.They present a balanced scorecard thatmeasures our progress against the followingperspectives: finance, infrastructure,customers, people and processes, economicactivity and lifestyle. Our corporate goals andkey performance indicators are detailed onpages 4-7 of this report.Our methodologyMeasurement-Based ManagementWe are steadfast in our resolve to realise ourVision, Mission and Values. To achieve this,we have embraced a management systembased on Total Quality Management andBusiness Excellence. Our quality principlesare the key to ensuring our long-termsuccess. They provide a solid framework forthe management and coordination of all ouroperations.Our quality principles are: Customer Focus Teamwork Data and Measurement Continuous ImprovementThese quality principles underpin theAustralian Business Excellence framework thathas been our management model since 1990.Business Excellence ModelThe Australian Business Excellence frameworkis a fully integrated leadership and managementsystem. It provides a structured methodologyfor using performance managementinformation to help set agreed performanceindicators, allocate and prioritise resources,confirm or change current program directionsto meet corporate goals, and to reportour success in meeting those goals. It is aholistic model that promotes sustainableperformance excellence across all facets ofour organisation and blends them togetherto deliver integrated, coordinated andcohesive results. To assist the organisation toconsistently achieve results for the community,our systematic approach is based on theprinciples of approach deployment results improvement.The extent to which we are achieving ourvision depends on how focused we are onthe Australian Business Excellence Modeland how we apply its principles to our dayto-daymanagement. To achieve a positiveoutcome for the people of <strong>Wollongong</strong> weneed to create an organisation that is healthy,balanced, efficient and effective; one thatdelivers to both customers and employeesand puts value on results.Pathway to SuccessCommitment at all LevelsResearch clearly shows that strongleadership is paramount in creating apositive organisational climate for nurturingperformance improvement.approachthinking andplanningimprovementlearningand adaptingThis is manifest through formal and informalmeetings with executive, senior management,employees and their supervisors to supportand review service delivery standards.Learning and DevelopmentComprehensive training programs are inplace to help work teams make processimprovements and to expand the technicalcapabilities of our staff.Reward and Recognition SystemA staff recognition and awards systemrecognises outstanding individual and teamachievements.Removing Organisational BarriersWe are working to shift the culture of theorganisation to one that readily acceptschange management.Data Measurement and AnalysisMeasurement and analysis on performanceprovides meaningful information for informeddecision making. We can then assess theoverall ‘health’ of the organisation and makeappropriate adjustments to our strategies.Communication at all LevelsOur commitment to being an open andaccessible organisation requires transparentcommunication to all stakeholders, includingour employees, customers, service providers,suppliers, agencies and the local community.Feedback MechanismsProcesses are in place to garner feedbackfrom key stakeholders on all facets of ouroperations. We participate in selected awardsprocesses to facilitate industry feedback onour performance.Role Model in Local <strong>Government</strong>We strive to be a role model in localgovernment by achieving our corporatephilosophy and by gaining recognition throughexternal evaluations and award processes.In so doing, we are able to provide the bestvalue services to our community.resultsmonitoringand evaluatingdeploymentimplementingand doing
service locations executive summary 3service locations<strong>Council</strong> HeadquartersThe <strong>Wollongong</strong> <strong>City</strong> <strong>Council</strong> administrationbuilding is located in Burelli Street,<strong>Wollongong</strong>. It functions as the nervecentre for our business activities, providingmanagement and administration support forevery facet of our operations. It also housesthe <strong>Council</strong> Chambers and <strong>Wollongong</strong>Central Library. Located nearby are the<strong>Wollongong</strong> Town Hall, <strong>City</strong> Art Gallery,Illawarra Performing Arts Centre and FortéMarketing and Design.OperationsThree major works depots are locatedin north, south and central <strong>Wollongong</strong>.These house our operational staff whoare responsible for buildings, roads andinfrastructure, plant maintenance,materials supply, asset managementand associated works.FacilitiesWe provide an extensive range of facilitiesto the community including libraries,community centres, botanic garden, leisurecentres, golf course, crematorium, wastedisposal depots and tourist parks. These arelocated throughout the <strong>Wollongong</strong> Local<strong>Government</strong> Area.Thirroul Library •• Thirroul PoolBulli Library •• Northern Depot• Bulli Tourist ParkRussell Vale Golf Course •• Geo Tech LabCorrimal Community Centre •Corrimal Pool •<strong>Wollongong</strong> Botanic Garden •Beaton Park Leisure Centre •• Central Depot• North <strong>Wollongong</strong> Beach• Continental PoolUnanderra Library •Western Suburbs Pool •Southern Depot •Whytes Gully Tip •Lakeside Leisure Centre •Dapto Pool •Ribbonwood •• Administration Building• Art Gallery• Forté Marketing & Design• IPAC• Tourism <strong>Wollongong</strong>• Town Hall• Crematorium• Berkeley Pool• Warrrawong Library• Port Kembla Pool• Port Kembla Beach• Koonawarra Community Centre• Windang Tourist Park
4 working towards a balanced scorecard executive summarycorporate goalsA BALANCED SCORECARD APPROACHAt <strong>Wollongong</strong> <strong>City</strong> <strong>Council</strong>, we have a management system in place that enables us to clarify the organisation’svision, mission and values and to translate these into action. This system provides a mechanism for feedback, bothin relation to internal business processes and external outcomes, in order to continuously improve our strategicperformance and provide value on results. The balanced scorecard approach helps us measure our performancethrough investment in our customers, suppliers, employees, processes, technology and innovation. This buildson our Business Excellence framework that focuses on quality, customer relationships, continuous improvement,employee empowerment and measurement-based management and feedback.Our mechanism for achieving a balancedscorecard involved identifying a range of keyperspectives that have been translated intoour strategic corporate goals. These are:Customers, Financial, People and Processes,Infrastructure, Social, Economic andEnvironmental. The last three directly relatingto Triple Bottom Line reporting.These seven perspectives combine to providea comprehensive reporting mechanism thatenables us to not only monitor our currentperformance and social responsibilities,but also our efforts in improving processes,motivating and educating employees, andenhancing information systems.Work is progressing on fine-tuning our keyperformance indicators to ensure that theyprovide meaningful feedback for our internalprocesses and business performanceoutcomes.1. CustomersGoal Focus on our customerwith the intent of continuallyincreasing the level of customersatisfaction.Process Our most importantcustomer is the <strong>Wollongong</strong> community.We seek to increase communitysatisfaction levels by continually strivingto improve the quality, timeliness andappropriateness of our services. Ourperformance is measured throughcustomer surveys and by ongoing mediamonitoring to identify major areas ofcommunity concern that may necessitatethe re-evaluation of our communicationstrategies.KEY PERFORMANCE INDICATORS -NUMBER OF POSITIVE/NEGATIVE MEDIA STORIES1998-99 1999-00 2000-01 2001-02 2002-03 <strong>2003</strong>-04Positive 1,602 2,089 2,732 1,849 1,897 2,584Negative 307 232 381 790 492 1,038Results Statistics for negative stories about <strong>Council</strong> during the year were impactedby a number of major long-running issues that generated a high volume of media interest.These included various elements of the Sandon Point development, maintenance issuesat Port Kembla pool, debate about illegal brothels, and industrial action over EnterpriseAgreement negotiations. In addition, the March 2004 local government election was thecatalyst for numerous negative stories about <strong>Council</strong> activities as candidates presented theirpolicies and sought to capitalise on various issues.KEY PERFORMANCE INDICATORS -CUSTOMER SATISFACTION WITH STAFF1990-3 1993-97 1997-99 1999-01 2001-03 <strong>2003</strong>-05Positive 45% 55% 68% 71% 67% 62.8%Results These results are in response to a comprehensive biennial community surveyundertaken by IRIS Research. While there was a slight but notable increase in negativeresponses, this was difficult to pinpoint to any one area of the organisation. It did, however,provide additional encouragement for an ongoing focus on corporate-wide customer service.It is pleasing to note the survey also showed that the proportion of <strong>Wollongong</strong> residentsrating our staff as ‘very responsive’ increased from 50% to 59%.
working towards a balanced scorecard executive summary 52. Peopleand ProcessesGoal Develop a productiveworkplace environment thatfosters learning and developmentand the wellbeing of ouremployees.Process Our employees are ourmost important resource. A committedand motivated workforce is conducive tohigh levels of organisational productivityand personal performance. This isachieved through a two-prongedapproach that targets staff developmentand training, and ongoing involvementof work teams in reviewing processesand systems. Our aim is to provide anappropriate balance between workplaceefficiency and productivity, and employeehealth, commitment and wellbeing.KEY PERFORMANCE INDICATORS -TRAINING COURSE ATTENDANCE - HOURS PER PERSON1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 <strong>2003</strong>-0421.3 21.1 19.6 19.5 16.7 25.4 30.3Results A significant investment was made this year on increasing the ability ofour employees, in addition to improving the quality, accuracy and timeliness of informationsystems. This is evidenced through a 19.3% increase in training course attendance peremployee during <strong>2003</strong>-04. Improvements to timeliness and information accuracy weresupported by the launch of the Intranet service, an important internal information resource.KEY PERFORMANCE INDICATORS - LOST TIME INJURIES1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 <strong>2003</strong>-0472 52 64 81 57 68 52KEY PERFORMANCE INDICATORS -DAYS LOST DUE TO LOST TIME INJURIES1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 <strong>2003</strong>-04968.34 648.67 538.27 841.63 660.06 735.08 519.08KEY PERFORMANCE INDICATORS -DAYS LOST PER LOST TIME INJURIES1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 <strong>2003</strong>-0413.45 12.47 8.41 10.39 11.58 10.81 9.98Results OH&S issues dominated our process improvement initiatives this year, aspart of our commitment to the safety and wellbeing of our employees, and to improve riskmanagement practices. These efforts resulted in a five-year low in the number of lost timeinjuries. Corresponding, the number of days lost due to workplace injury were substantiallyless, in fact, the lowest recorded to date. This is an excellent result and can be directlyattributed to the large amount of effort put into all aspects of the OH&S program by ourHuman Resources Division.COUNCIL IS A GOOD PLACE TO WORK1996-97 1997-98 1998-99 1999-00 2000-02* 2002-04**84% 83% 90% 91% 92%* Staff survey now conducted bi-annually.EMPLOYEES ARE HAPPY WITH THEIR JOBS1996-97 1997-98 1998-99 1999-00 2000-02* 2002-04**79% 80% 87% 84% 86%** Survey not conducted in <strong>2003</strong>-04.Results An internal staff survey was not conducted this year pending the introduction of a new performance management system.3. InfrastructureGoal Manage ourinfrastructure assets to ensurethey are appropriate for the needsof our community whilst beingeffectively utilised and maintainedin a serviceable condition.TOTAL VALUE OF INFRASTRUCTURE ASSETS1998-99 1999-00 2000-01 2001-02 2002-03 <strong>2003</strong>-04$750.8m $724.4m $730.7m $721.9m $711.5m $700.86mResults The downward trend in value of our infrastructure assets reflects thedeterioration of <strong>Council</strong>’s roads, drains, bridges, footpaths etc. We are currently examiningadditional funding opportunities, along with improved asset management and maintenancetechniques to redress this trend.Process Our infrastructure assetsmust be effectively managed to ensurethe community’s needs are met. The keyperformance indicator relates to the totalvalue of our infrastructure assets.
6 working towards a balanced scorecard executive summary4. FinancesGoal Demonstrate financialresponsibility to ensure thatadequate funding is availableto implement community andcorporate programs.NET DEBT SERVICE COST1998-99 1999-00 2000-01 2001-02 2002-03 <strong>2003</strong>-04$4.3m $3.0m $3.6m $2.3m $2.9m $13.7mResults The increase in debt service cost is due to the transfer of $10.8 million into asinking fund reserve for the settlement of the administration building purchase due in 2006.Process We have a responsibilityto our major stakeholders to effectivelymanage our financial operations toensure sufficient resources to meetcommunity programs. Timely andaccurate financial reporting is critical toresponsible management of finances.Key financial performance measuresreturn on investments compared toliquidity and current ratios, and raterecovery percentages.OPERATING REVENUE1998-99 1999-00 2000-01 2001-02 2002-03 <strong>2003</strong>-04$108.3m $111.1m $114.6m $120.4m $124.8m $129.4mResults The increase in operating revenue reflects a normal trend in <strong>Council</strong> operations.CURRENT RATIO1998-99 1999-00 2000-01 2001-02 2002-03 <strong>2003</strong>-042.2:1 2.58:1 3.23:1 2.54:1 2.53:1 2.31:1Results The slight decrease in the current ratio reflects the reduction in current cashassets due to the allocation of funds to a non-current investment security associated withthe deferred payment arrangement for the administration building purchase in 2006. Ourcurrent ratio is considered to be in a sound position and well above the accepted industrybenchmark of 1:1.RATES AND ANNUAL CHARGES OUTSTANDING1998-99 1999-00 2000-01 2001-02 2002-03 <strong>2003</strong>-043.7% 3.7% 3.9% 4.2% 4.0% 4.3%Results While we experienced a slight increase in the amount of rates andannual charges outstanding, it remains well below the local government accepted rate of 5%.5. EnvironmentGoal Promote and practiceenvironmental sustainability,focusing on appropriatedevelopment, recycling, wasteminimisation, revegetation andpollution control.Process Environmentalsustainability is a major focus for theorganisation. Two major indicators thatmeasure our key results are recyclingparticipation rates compared to theamount of waste going to landfill, and theamount of grant funding received throughthe Environment Management Program.HOUSEHOLD RECYCLING VS GARBAGE COLLECTION (TONNES)1998-99 1999-00 2000-01 2001-02 2002-03 <strong>2003</strong>-04Recycling 15,384 15,250 14,724 14,348 14,490 14,869Garbage 56,007 32,500 31,246 29,892 31,606 34,290DOLLAR AMOUNT OF FUNDING RECEIVED FORENVIRONMENT MANAGEMENT PROGRAMLevel of Contribution <strong>2003</strong>-04Funds raised by the <strong>Wollongong</strong> community $1,000,000Value of Grant Funds Received $433,767Total Value of Environment Funds $1,433,767Results While recycling rates in <strong>2003</strong>-04 increased to a four-year high, the amountof garbage collected also increased. This was the inaugural year for our EnvironmentalManagement Program, the funding received via grants, coupled with the Envirofundallocations, has provided a tremendous boost to this comprehensive program to reduce ourecological footprint on the <strong>Wollongong</strong> region.
working towards a balanced scorecard executive summary 76. Economy DOLLAR VALUE OF DEVELOPMENT APPLICATIONS RECEIVEDGoal Develop a teamenvironment that facilitates,coordinates and promotessystems and processes thatencourage a high level ofeconomic activity to enhance thefuture growth and development ofthe city.1998-99 1999-00 2000-01 2001-02 2002-03 <strong>2003</strong>-04$231.18m $390.00m $674.45m $435.66m $460.47m $826.66mResults The total value of development applications lodged at <strong>Council</strong> this year hasmarkedly increased over previous years and reflects high levels of investor confidence in the<strong>Wollongong</strong> region.Process Sustained economicgrowth is vital to <strong>Wollongong</strong>’s future.<strong>Council</strong> takes every opportunity toattract additional investment to the city.Performance is monitored through thevalue of all development activity.7. SocialGoal Ensure quality andvariety in recreation, cultural andleisure opportunities to enhancethe lifestyle of our community.Process <strong>Council</strong> provides adiverse array of recreational, culturaland leisure facilities and services for thebenefit of the community. Performance ismeasured in relation to community usageof these facilities and dollars spent percapita on leisure services.USAGE OF COUNCIL’S FACILITIES1998-99 1999-00 2000-01 2001-02 2002-03 <strong>2003</strong>-043.6m 3.0m 3.4m 3.5m 3.1m 3.1mResults Community use of our facilities remained consistent over the last twoyears. Although not as high as the level recorded in 1998-99, the result is well within therange expected.DOLLARS SPENT PER CAPITA ON RECREATIONAND LEISURE FACILITIES1998-99 1999-00 2000-01 2001-02 2002-03 <strong>2003</strong>-04$79.25 $82.05 $91.72 $73.49 $90.87 $86.54Results The fluctuation in these figures reflects the varying level of capital projectswithin each financial year. Whilst this year’s result shows a small decrease over the previousyear, it is still above the six-year average of $83.99 per capita.
8 year in review executive summaryyear in reviewJuly <strong>2003</strong> Latest IRIS research reveals communitysatisfaction levels with our services andfacilities. Some areas receive lessfavourable response than previous years. Purchase of 22 hectares at DarkesRoad, Brownsville to create a regionalcommunity recreation park. New financial management informationsystem installed to improve reportingand enquiry options relating tofinancial matters. Launch of ‘Be Waste Wise with Wil BWise’ school competition to encouragestudents to practice being waste wiseboth at home and at school. Release of graffiti strategy involving publiceducation, working with businesses andestablishing a graffiti hotline. Review of corporate and financialperformance for last quarter of 2002-03. Work commences on revitalisingWentworth Street, Port Kembla. Launch of the Environment Fund thatwill provide financial resources for arange of environmental sustainabilityprojects designed to reduce ourecological footprint.August <strong>2003</strong> Severe windstorm closes several facilitiesthrough power blackouts and keeps crewsbusy clearing fallen trees and debris fromroads and public areas. The Illawarraofficially declared a natural disaster area. <strong>Council</strong> awarded 3rd prize in the KeepAustralia Beautiful, Metro Pride <strong>2003</strong>Awards in the CommunityEnvironmental Initiatives category. Surf Sense Education Program conductedin 58 schools. Memorandum ofUnderstanding entered into with theRoyal Life Saving Society of Australia.September <strong>2003</strong> <strong>Report</strong> assessed bushfire risk for allsites along urban bushland, as partof the <strong>Wollongong</strong> Bushfire AssetProtection Zone Risk ManagementStudy. Launch of the 18th annual Rise andShine campaign that focuseson community education, environmentalawareness and enhancement. Environment Fund GovernanceCommittee forms to oversee theEnvironment Management Program forfuture sustainability and the properutilisation of the environment budget. World Environment Day <strong>2003</strong> held at thebotanic garden to educate school childrenon environmental awareness. Start of school holiday activities atGlengarry Cottage involving creativeand entertaining workshops for childrenand their parents on waste reductionand creative recycled art. Fun Food and Fitness holiday programcommences at the botanic garden andStuart Park, held in partnership with<strong>NSW</strong> Department of Tourism, Sport andRecreation, and Nutrition Australia. Children’s Week activities attract 400people for the Kid’s Garden Groove Day.October <strong>2003</strong> Quarterly Corporate and Financial Reviewtabled for first quarter of new financial year. Two Rugby World Cup matches drawthousands of people to the centre of<strong>Wollongong</strong> to participate inmajor festivities. <strong>Wollongong</strong> hosts 16th <strong>Annual</strong><strong>NSW</strong> Local <strong>Government</strong> AboriginalNetwork Conference. Viva la Gong Festival a great successwith widespread communityparticipation, and attracting visitorsfrom outside the region. Highly commended award received forthe <strong>Wollongong</strong> Bushfire ProtectionZone Risk Management Study in theLocal <strong>Government</strong> Excellence in theEnvironment Awards.
year in review executive summary 9November <strong>2003</strong> Release of our 2002-03 annual report tothe community. Beaton Park Leisure Centre stages itsthird <strong>NSW</strong> Cancer Relay for Life, raisingover $125,000 for cancer researchand education. A Wongawilli Heritage Studycommences to examine thesignificance of the local village andmine. The 2002-03 state of the environmentreport submitted to the Department ofLocal <strong>Government</strong> in electronic format. <strong>Wollongong</strong> Economic DevelopmentRoadmap <strong>Report</strong> identifies the needto create an office of economicdevelopment to attract new businessto the region. New Land Information System (LIS)becomes operational, covering a widerange of our operations including licensing,applications, rates, certificates, propertiesdebtors and receipting.December <strong>2003</strong> Official function held in honour of allemployees nominated in the annual StaffAchievement and Recognition Awards. The long-anticipated <strong>City</strong> Beach Surf LifeSaving Club completed. Local Environmental Awards Night heldat the <strong>Wollongong</strong> Town Hall for bothBushcare and Rise and Shineactivities. Inaugural meeting of the FortéManagement Committee.January 2004 Quarterly Corporate and Financial Reviewtabled for the second quarter of <strong>2003</strong>-04financial year. Australia Day Celebrations. Inaugural Monthly Project <strong>Report</strong>circulated to managers and directors toenable continuous monitoring ofoperations and capital projects. Exhibition of the draft <strong>City</strong> CentreRevitalisation Strategy extended toobtain more community feedback onproposed development strategiesfor public domain, built form, heritageand conservation, sustainabledevelopment, amenity, pedestrianaccess and parking. Launch of the Environment Fund andsigning of the Community Contract to carryout major environmental works andprojects for a sustainable <strong>Wollongong</strong>.February 2004 Draft Illawarra Escarpment ManagementPlan released for public exhibition toensure the escarpment is protected andpreserved, and that landholders havemore certainty about the future oftheir properties. Our Subdivision Code is formally adopted,reflecting best practice for subdivision roadand drainage construction works. Project launched to provide smallbusinesses with a choice of three typesof recycling bins to suit their specificrequirements. $30,000 grant received under the CoolCommunities initiative to re-run ourSustainability Street Program to helpparticipating households reduce energyconsumption and greenhouse gasemissions.March 2004 Local government election held,resulting in several new representativeson <strong>Wollongong</strong> <strong>City</strong> <strong>Council</strong>. Concept designs and estimates preparedfor the relocation of the <strong>Wollongong</strong>Olympic Soccer Club from Brandon Parkto Figtree Park, Figtree including a newamenities building, soccer field andassociated facilities. Clean Up Australia Day an outstandingsuccess with 10,000 school studentsand 2,500 community members takingpart with 29 tonnes of rubbish and 13motor vehicles removed over theweekend activities. Senior Citizens Week attracts largeaudiences to a range of activities includingconcerts, arts and craft displays,luncheons and bus trips. International Women’s Day is celebratedby a Diving for Girls event at the<strong>Wollongong</strong> Continental Pool. Water Education Officer employed toraise community awareness in thesustainable use of water resources. Two teams represent <strong>Wollongong</strong> <strong>City</strong><strong>Council</strong> in the Local <strong>Government</strong>Managers Australia ManagementChallenge. Microchipping Day promoting responsibledog management results in 110 dogsbeing microchipped.April 2004 Quarterly Corporate and FinancialReview tabled for third quarter of the<strong>2003</strong>-04 financial year. Release of survey assessing ourperformance standards in deliveringdevelopment-related matters. Design Division maintains its qualitycertification to IS0 9001:2000 with allareas being audited. School holiday program conducted in thebotanic garden on rare and endangeredspecies and the traditional Aboriginalenvironment.May 2004 The 2004-08 Draft Corporate Planplaced on public exhibition forcommunity input into the futuredirection of our works and services. New outreach service in the Shellharbourarea commences on behalf ofVolunteering Illawarra. Renewed insurance coverage for2004-05 with improved terms andconditions and at lower premium toprevious year.June 2004 Consultant in environmentally sustainabledevelopment engaged to work on theThirroul District Community Centre andLibrary site. Finalised 2004-08 Corporate Plan andbudget is presented and adopted by<strong>Council</strong>. 2002-03 annual report receives SilverAward at the 2004 Australasian<strong>Report</strong>ing Awards. Tender awarded for the resurfacing ofthe Illawarra Regional Athletics Track. Bag Yourself a Better Environmentpromotion involves the delivery of 73,000calico bags to all local households, alongwith the annual waste information kit. World Environment Day 2004 held atthe botanic garden, bringing togethercivic leaders, government agencies andlocal school students to focus onenvironmental protection, conservationand sustainability. <strong>Wollongong</strong> Youth Week 2004 wins a stateaward for innovation. Southside Festival held in CringilaCommunity Park to celebrate thedifferent cultures that live in oursouthern suburbs. Circus Solarusworked with students to make thelanterns used in the finale parade. Launch of a major community initiativeSustainability Begins at Home program tohelp reduce our ecological footprint andsave on the household bills of participatingresidents. Current Enterprise Agreement expireswith negotiations continuing betweenmanagement and employeerepresentatives on organisation andoperational change, policies andprocedures and skills and performancemanagement. Dinner dance held in appreciation of theefforts of all community volunteers. A Pre-Book Week Extravaganza held atthe Corrimal Community Centre.
10 major achievements executive summarymajor achievementsQuadruple Bottom Line –Sustainability <strong>Report</strong>ingWe have embarked on a program to increaseour sustainability, both as an organisationand as a community. A number of flagshipinitiatives developed over the last year haveseen this vision become reality. These beganwith our ground breaking Ecological Footprintand Triple Bottom Line <strong>Report</strong> preparedby Sydney University. The report outlineswhere we, as a council and as a community,have our greatest impact with respect toeconomic, social and environmental factors.It also provides a benchmark against whichwe can measure progress along thepathway to sustainability.Greenhouse Action PlanAs part of the Cities for Climate Protectionprogram, a United Nations based initiative,we have prepared a Greenhouse ActionPlan that outlines a strategy to reduce ourgreenhouse gas emissions by 20% by theyear 2010.Sustainability Begins at HomeAnother major initiative was the innovativeSustainability Begins at Home program,designed to provide the city’s residentswith tools and financial incentives to reducetheir own ecological footprint and savemoney at the same time. The programwas a unique partnership between <strong>Council</strong>,the community, state agencies and productsuppliers. Among the incentives offered wereinformation on how to save energy and fuelbills and discounts on sustainable products.Benchmarking OH&S ProgramDuring the year, our OH&S ManagementSystem was benchmarked against a numberof other councils and industry groups.These were Bankstown <strong>Council</strong>, Gosford<strong>Council</strong>, Marrickville <strong>Council</strong>, Newcastle<strong>Council</strong>, Star <strong>City</strong> Casino, Bluescope Steel,University of <strong>Wollongong</strong> and Transgrid.A comparison of our OH&S ManagementSystem has indicated that we are on par withmost self insurers in regard to our approachto safety. No major areas for improvementwere identified during the project. Minoraspects in areas such as risk managementwill be taken into consideration during thereview phases.Sustainability StreetSustainability Street is an innovative programdesigned for residents who wish to live moresustainably at a community level while havingfun at the same time. The program providessupport to participants in the form ofinformation and products. So far, residents ineight streets have taken part in the program.In addition to the environmental benefits ofthe campaign, participants have reportedthat community bonding is another positiveoutcome of the Sustainability Street program.Organisational DevelopmentAs part of our commitment to the AustralianBusiness Excellence Framework andthe reinvigoration of our proven Qualityapproach, we have implemented anOrganisational Development Program forexecutive, senior managers and assistantmanagers. The foundation of this three-tieredprogram was the creation of a managementframework based on the contemporaryorganisational theory, a review of ourVision, Mission, Values and CorporateGoals, and the application of BusinessExcellence principles. We measure progressthrough improvements in our organisationalperformance indicators.Performance Management SystemOur new Performance Management Systemfor all employees (including senior contractedstaff) supports the move towards aperformance-based culture. This system willreplace the current competency assessmentprocess, the annual contract performancereviews and the Employee Developmentand Review system for all non-contractedemployees. The Performance ManagementSystem assesses performance against ourprinciples, values and business outcomes.Identifying OH&SIssues Within ProjectsWe developed a process that focuses onidentifying and documenting potential OH&Sissues over the life cycle of a project: fromthe design concept phase to its completionof the project. Relevant data was collectedfrom across all divisions. It is anticipated thatthe final report will be available next year.<strong>Wollongong</strong> FuturesProgress continued on the <strong>Wollongong</strong>Futures project that will set a new planningframework for the local government area.The framework will take into accountsocial, environmental and economic factorsaffecting our city. A series of workshops,involving community representatives and keystakeholders generated valuable discussionand ideas about what people want to see in<strong>Wollongong</strong> by the year 2020. The project isnow moving into its final stages with a draftstrategy being formulated.Role Model in Local <strong>Government</strong><strong>Wollongong</strong> <strong>City</strong> <strong>Council</strong> is committed tobeing a role model in local governmentthrough the achievement of our corporatephilosophy, benchmarking our operations,implementing innovative strategies andgaining recognition through externalevaluations and award processes.Development of West DaptoWe have begun working in earnest onplanning the future West Dapto residentialarea, following the announcement of thestate government’s commitment to theproject. With pressure intensifying forresidential land in and around <strong>Wollongong</strong>,and the high cost of housing, theannouncement provided clear directionconcerning the last remaining area for majorhousing development in our region.
major challenges executive summary 11major challengesEscarpment Management PlanDuring the year, we exhibited a draftEscarpment Management Plan inviting thecommunity to prepare written submissions.Public feedback was extensive, with anumber of stakeholder groups very vocalregarding their concerns with various aspectsof the document. We are continuing, with theassistance of the <strong>NSW</strong> State <strong>Government</strong>,to work through these issues with a viewto addressing stakeholder concerns.Safety System Audit<strong>Council</strong> was the subject of an extensivesafety system audit by WorkCover <strong>NSW</strong>, inline with self-insurer licensing requirements.The audit identified that various elementsof the integrated system, required underthe terms of the license, were not operatingeffectively or efficiently in some cases.This outcome was of particular concern tomanagement. Considerable effort is beingapplied to rectify system shortcomings andto improve the overall safety record andperformance of <strong>Council</strong>.<strong>City</strong> Centre RevitalisationAn attempt to modernise the planninginstruments and controls relating to the<strong>Wollongong</strong> CBD were shelved. Accordingly,a revised development control plan for thecity centre is anticipated for release in thefirst half of 2005.Community Survey<strong>Council</strong> was criticised when results ofa regular community survey found thatimprovements and focus were not fullyaligned with community expectations.Following this feedback, the widermanagement team was engaged to ensurefuture corporate and business plans reflectedthis updated community focus.Asset MaintenanceOur statutory auditor has recognised that thefinancial statements do not reflect adequateprovisions for longer-term maintenance of thecity’s assets (roads, bridges, buildings, etc).During the year a submission was preparedto the Department of Local <strong>Government</strong>seeking longer-term funding solutions, alongwith the implementation of a planning phasefor an enterprise asset management system.ComplaintsThe Minister published statistics for theyear relating to complaints received by theDepartment of Local <strong>Government</strong> for alllocal government organisations within <strong>NSW</strong>.This identified that <strong>Wollongong</strong> <strong>City</strong> <strong>Council</strong>had received 29 complaints during theyear. While some detail of the natureof the complaints has been provided,no complaints were received that weredeemed serious enough to warrant furtherinvestigation by the Department.Operational ChallengesThe year brought several additionalchallenges in the form of unexpected acts ofnature, including a major one-off event in ourcity. A severe windstorm in August <strong>2003</strong>saw several facilities of <strong>Council</strong> closedthrough power blackouts. Work crewswere tested by many callouts requestingthe removal of fallen trees and debris fromthe region’s roads and public areas. Thelevel of response from the city’s emergencyservices was well coordinated and the StateEmergency Service performed an excellentjob in responding to calls for assistance.Development Issues<strong>Wollongong</strong> continues to develop andexpand, receiving unprecedented levelsof interest from both investors and thoserelocating to share the region’s enviablelifestyle. While extremely positive for thecity’s economic future, the situation has alsobrought increasing pressures. In particular,high demand for the processingof development applications, and the needto balance the interests and legalentitlements of developers with those ofresidents and the broader community.We are currently working to improveour response times to meet communityexpectations.
12 lord mayor’s report executive summarylord mayor’s reportIt gives me great pleasure to present this report on the achievementsand activities of <strong>Wollongong</strong> <strong>City</strong> <strong>Council</strong> during <strong>2003</strong>-04.The last twelve months saw <strong>Wollongong</strong> continue on its journey as adynamic, modern city supported by a community abounding in local pride.<strong>Council</strong> worked hard to respond to the needs of its residents and ratepayers,and to provide civic leadership at this crucial stage of the city’s growth.New <strong>Council</strong>I was delighted and honoured to bere-elected to the position of Lord Mayorat the March 2004 election, and to welcomemy councillor colleagues for the new term.It is very pleasing to see a <strong>Council</strong> with amix of experience and fresh ideas.By working closely together, we will makea truly formidable team as we lead the cityand represent our community.Event SuccessA highlight of the last twelve months was thevery successful and colourful Viva la GongFestival, staged in conjunction with twogames of the Rugby World Cup <strong>2003</strong>. It waswonderful to see our city displaying the greatattributes of our rich multicultural community,as well as our perpetual enjoyment of sport.Congratulations to everyone who organisedand supported these world-class events.Economic Road MapSignificant progress was made to adopt acitywide approach to economic developmentand job creation. The <strong>Wollongong</strong> EconomicDevelopment Road Map documented theneed for an Office of Economic Developmentto work with other groups and agencies inattracting new business to the region andsupporting existing business and industry.Links With BusinessThe year provided many more opportunitiesto forge links with our business community.I was privileged to inspect a number ofoperations, as part of our ongoing programof industry visits, and never cease to beamazed by the level of innovation of ourbusiness people, many of whom representuntold <strong>Wollongong</strong> success stories. Throughour business luncheon program we wereable to foster networking opportunities andbring high profile speakers to the region,including the Victorian Police Commissioner,Christine Nixon.Helping Northern ResidentsThe closure of Lawrence Hargrave Driveposed a significant challenge for residentsand businesses in the northern suburbs andimpacted on our entire city. I was pleasedto host a series of consultation forums toenable those most affected to air theirviews and to work through issues. Whilethe closure will continue to have a majorimpact during the reconstruction period,the people of the northern suburbs mustbe commended for their spirit in workingto adapt during this difficult time.Schizophrenia AppealIt was touching and uplifting to see thelevel of support shown for the Lord Mayor’sSchizophrenia Awareness Project, whichresulted in the purchase of a Beta Imagerto help in the treatment of schizophreniapatients. The machine, funded through apublic appeal and located at the Universityof <strong>Wollongong</strong>, is the first of its kind in thesouthern hemisphere and will assist some ofthe three thousand families in the Illawarraaffected by schizophrenia. The appeal is yetanother demonstration of the generosity ofthe <strong>Wollongong</strong> community.Southern <strong>Council</strong>s GroupI was very pleased to be appointed Chair ofthe Southern <strong>Council</strong>s Group, an umbrellabody now encompassing councils from<strong>Wollongong</strong> to the Victorian border. A keyissue on our agenda was the upgrade of thePrinces Highway, and we strongly lobbiedboth state and federal governments for majorfunding commitments on this crucial roadlink, which serves a population approachinghalf a million.There are many exciting times aheadfor <strong>Wollongong</strong>, as we realise the vastopportunities that present themselves. Wecontinue to cement our position as a majorplayer on the national scene, with arguablythe best lifestyle in Australia and a diverse,tolerant and inclusive community. Thank youfor your support for <strong>Wollongong</strong> over the lastyear, and I look forward to working with youinto the future.Alex DarlingLord Mayor<strong>City</strong> of <strong>Wollongong</strong>
overview from the ceo executive summary 13overview from the ceoI am very pleased to present this report on <strong>Wollongong</strong> <strong>City</strong> <strong>Council</strong>’sachievements for <strong>2003</strong>-04. It was another busy and exciting year aswe continued to provide a very diverse range of services and facilitiesfor our community.Like local government authorities around Australia, we also faced theongoing challenge of meeting expectations and needs for expandedservices within a limited budget.Financial PositionWe were once again able to finish theyear in a strong financial position, with aworking funds surplus of $652,000. Whilethis was achieved through prudent financialmanagement, it must be recognised that ourresponsibility to maintain around $1.1 billionin assets, including roads and communitybuildings, will continue to weigh heavily infuture financial planning.New FacesThe local government election in March2004 brought a number of new councillorsto our organisation and I would like to takethe opportunity of welcoming all councillors.I would also like to formally recognise andthank the members of the previous <strong>Council</strong>for their significant contribution to our city.During the year, we were pleased towelcome David Broyd as our new Directorof Environment and Planning. Mr Broydreplaced Dr Mike Mouritz, who left<strong>Wollongong</strong> to take up a senior positionin the Western Australian government.New Computer SystemsThe introduction of a new financialmanagement system across our organisationwas a major project encompassing all areasof operations. I am pleased to report thesystem was successfully implemented, withongoing training to ensure all personnel areproficient in its use. We also implementeda new land information system that spanskey areas including rates, developmentapplications and property information.Operational ChallengesThe year brought several additionalchallenges that tested our operations.A severe windstorm in August <strong>2003</strong> closedsome facilities and kept crews busy clearingfallen trees and debris from roads andpublic areas. Our city’s emergency services,including many volunteers from the StateEmergency Service, did a magnificent job inresponding to the many calls for assistance.Two months later, <strong>Wollongong</strong> was in theinternational spotlight when we hosted twomatches of the Rugby World Cup. Staging ofthe sporting events, and the coinciding Vivala Gong Festival, required a major operationaleffort, that saw us working closely with arange of organisations.Major Planning ProjectsThe year saw two major projects continueto develop: <strong>Wollongong</strong> Futures and the<strong>Wollongong</strong> <strong>City</strong> Centre RevitalisationStrategy. Both will set the future directionof the city and involve extensive communityconsultation on social, environmental andeconomic factors. We also began planningfor the future West Dapto residentialarea, following the announcement of thestate government’s commitment to theproject. Elsewhere, we moved ahead witha development control plan for Thirroulcommercial area and major streetscapingwork in both Thirroul and Port Kembla.Environmental AchievementsThe Environment Fund is now established,overseen by a Governance Committeemade up of ward councillors and communityrepresentatives. The fund will enable us tocarry out a number of key projects that areover and above our existing works programs.The draft Illawarra Escarpment ManagementPlan was released for public exhibition inFebruary 2004 and, when ultimately adopted,will ensure the escarpment is protected andpreserved, and landholders more certainabout the future of their properties.Working With the CommunityWe continued to strengthen the vitalpartnership between the community and<strong>Council</strong>, and attracted strong participationin the community access forums at ourmajor committee meetings, neighbourhoodcommittees and through various otheravenues for public comment on issues.We greatly value your contribution astogether we build an exciting future for<strong>Wollongong</strong>. Thank you to all who havecontributed to our decision making processduring the year, and to the Lord Mayor,councillors and staff for their dedication.Rod Oxley, PSMCEO<strong>Wollongong</strong> <strong>City</strong> <strong>Council</strong>
14 elected representatives executive summaryelected representativesWARD 1 Alice CartanHome Tel: 4267 4496Fax: 4267 5423Mobile: 0407 934 545Email: acartan@wollongong.nsw.gov.auFull time <strong>Council</strong>lor, first elected March2004. Attended 4* <strong>Council</strong> meetings.WARD 1 David MartinFax/Tel: 4228 6498Mobile: 0409 228 147Email: dmartin@wollongong.nsw.gov.auSchool Principal, first elected 1983,re-elected 1987, 1995, 1999, 2004.Environment, Planning & DevelopmentCommittee (to March 2004). Attended 12<strong>Council</strong> and 11 committee meetings.LORD MAYOR Alex DarlingJeweller, first elected 1987, re-elected1995, 1999. Elected Lord MayorSeptember 2002. Administrative,Works & Community Services;Environment, Planning & Development;and Policy, Strategy & Review committees(chairperson). Attended 13 <strong>Council</strong>and 11 committee meetings.13 <strong>Council</strong> and 15 major committeemeetings were held during theperiod under review.Roles of MajorCommittees of <strong>Council</strong>The committee system allows councillors tofocus on issues by allocating sufficient timefor debate, discussion and effective decisionmaking. Minutes are taken of all meetings,an important factor in evidencing thetransparency of the decision making process.WARD 2 Val ZanottoHome Tel: 4285 5800 Bus. Tel: 4261 4488Fax: 4285 5003Mobile: 0409 719 395Email: vzanotto@wollongong.nsw.gov.auWARD 2 Janice KershawHome Tel: 4284 9367Fax: 4283 3308Email: jkershaw@wollongong.nsw.gov.auWARD 3 David BrownHome Tel: 4228 7938Fax: 4226 3791Mobile: 0417 223 609Email: davidbrown@wollongong.nsw.gov.auWARD 3 Anne WoodFax/Tel: 4229 8136Mobile: 0417 650 392Email: awood@wollongong.nsw.gov.auFuneral Director, first elected March 2004.Attended 4* <strong>Council</strong> meetings.Section Manager, first elected 1991,re-elected 1995, 1999, 2004. Environment,Planning & Development Committee(to March 2004). Attended 13 <strong>Council</strong>and 15 committee meetings.Media Consultant, first elected December2002, re-elected 2004. Environment,Planning & Development Committee(to March 2004). Attended 13 <strong>Council</strong>and 15 committee meetings.B Sc (Hons) 1st Class, Historian & Teacher,first elected March 2001, re-elected 2004.Administrative, Works & Community ServicesCommittee (to March 2004). Attended 12<strong>Council</strong> and 12 committee meetings.Administrative, Works andCommunity Services Committee Consider broad policy issues that affect<strong>Council</strong> (other than planning policy). Recommend delegations of authority. Consider overall organisational structure. Deal with matters that are unable tobe delegated to Section 377 of the Local<strong>Government</strong> Act, 1993. Consider forward works programs andschedules. Review the progress of the annual worksprograms through the quarterly corporatereview process.Environment, Planning andDevelopment Committee Recommend the determination ofdevelopment applications which were notapproved by delegated authority. Recommend those matters whichmust be considered by <strong>Council</strong> under theEnvironmental Planning and AssessmentAct, 1979. Consider policy issues that relate to anduse planning throughout the city. Plan for and advise <strong>Council</strong> on thedevelopment of community serviceprograms and facilities. Advise and inform <strong>Council</strong> on all issuesthat relate to the development and qualityof life of local communities. Consider recommendations from variousliaison committees.WARD 4 Andrew AnthonyFax/Tel: 4271 4764Mobile: 0439 473 281Email: aanthony@wollongong.nsw.gov.auWARD 4 Carolyn GriffithsHome Tel: 4229 4852Fax: 4225 8253Mobile: 0407 294 039Email: cgriffiths@wollongong.nsw.gov.auWARD 5 Frank GigliottiHome Tel: 4261 8121Fax: 4261 8137Mobile: 0417 462 156Email: fgigliotti@wollongong.nsw.gov.auWARD 5 Tony KentHome Tel: 4261 3154Fax: 4262 8154Mobile: 0408 620 646Email: tkent@wollongong.nsw.gov.auWARD 6 Zeki EsenHome Tel: 4276 2063Fax: 4276 3017Mobile: 0402 695 806Email: zesen@wollongong.nsw.gov.auWARD 6 Kiril JonovskiHome Tel: 4226 5582Fax: 4225 8817Mobile: 0438 265 580Email: kjonovski@wollongong.nsw.gov.auComputer Technician, first elected March2004. Attended 4* <strong>Council</strong> meetings.Full time <strong>Council</strong>lor, first elected 1999,re-elected 2004. Environment, Planning &Development Committee. (to March 2004).Attended 9 <strong>Council</strong> and 11 committeemeetings.Regional Mobile Lending Manager, firstelected March 2004. Attended 4* <strong>Council</strong>meetings.Retired Manager, first elected 1995,re-elected March 2004. Attended4* <strong>Council</strong> meetings.Small Business Operator, first electedMarch 2004. Attended 4* <strong>Council</strong>meetings.Deputy Lord Mayor (from March 2004)Technical Officer and Interpreter, first elected1999, re-elected 2004. Environment,Planning & Development Committee.(to March 2004). Attended 12 <strong>Council</strong>and 14 committee meetings.• The Local <strong>Government</strong> Election was held in March 2004, newly elected representatives were only available to attend fourmeetings prior to 30 June 2004 .
elected representatives executive summary 15Fees, Expenses and FacilitiesProvided to the Lord Mayor and<strong>Council</strong>lors during <strong>2003</strong>-2004Lord Mayoral fees $54,860<strong>Council</strong>lor fees $240,957Payment of expenses andprovisions of facilities to councillorsExpenses:TravelIf a councillor uses their own motor vehiclefor <strong>Council</strong>-related business, an allowanceis payable in accordance with the EnterpriseAgreement.FunctionsCosts incurred by any councillor in attendinga community function in an official capacityare met by <strong>Council</strong>. Costs associated witha partner’s attendance, when specificallyinvited as the councillor’s partner, are alsomet.FacilitiesA facsimile machine is provided andmaintained for each councillor and amobile phone is available to councillors onrequest. A furnished councillor’s room islocated within the administrative centre. Thisincludes the provision of computer facilities.A fully serviced and maintained motor vehicleis provided for use by the Lord Mayor for allcivic duties.Policy in relation to expenses andthe provision of facilitiesThe policy on the provision of facilities andthe payment of expenses to councillors maybe viewed at any branch library. This policyoutlines the service and facilities providedto the Lord Mayor and councillors to enablethem to undertake their civic duties.The total cost for these facilitiesin <strong>2003</strong>-04 was $40,347.99, inaddition to $7,170.50 for the LordMayor in relation to hospitalityand $52,802.15 for councillorattendance at conferences,seminars and workshops.The <strong>Wollongong</strong> local governmentarea is divided into six wards withtwo councillors elected to representeach ward. The Lord Mayor iselected by all voters from all wards.<strong>Council</strong>lorPhone/Faxexpenses$Mobile phones$Travellingexpenses$Conferences,seminarsand workshops$Hospitality$Darling 1,189.43 1,404.19 - 4,217.40 7,170.50 13,981.52Christian 453.60 263.12 - 1,365.00 - 2,081.72Martin 557.27 3,071.87 1,392.00 33.00 - 5,054.14Cartan 124.76 91.68 312.00 363.00 - 891.44Kershaw 1,605.14 - 463.80 969.00 - 3,037.94Zanotto 137.84 177.77 124.80 363.00 - 803.41Hunt 389.34 546.37 702.00 2,899.50 - 4,537.21Brown 779.57 269.48 246.42 - - 1,295.47Wood 1,791.75 1,911.44 579.28 1,592.00 - 5,874.47Griffiths 1,481.84 2,286.97 639.60 10,001.75 - 14,410.16Anthony 127.14 92.34 111.28 1,478.50 - 1,809.26Mott 952.37 1,038.87 600.84 7,764.48 - 10,356.56Kent 127.65 17.96 201.60 1,493.50 - 1,840.71Gigliotti 91.48 36.30 235.80 1,483.50 - 1,847.08King 1,984.45 - 1,622.15 7,914.00 - 11,520.60Yates - 1,250.10 503.80 1,767.00 - 3,520.90Jonovski 662.35 1,578.14 960.44 3,982.00 - 7,182.93Esen 109.34 131.08 224.40 363.00 - 827.82Pocock 1,640.58 3054.20 - 4,462.00 - 9,156.78Total 14,205.90 17,221.88 8,920.21 52,511.63* 7,170.50 100,030.12Total$* Includes $118.18 for Cr Mott for suit hire, $28.00 for Cr Wood tickets to Friends of Library functions and $12.00 for Cr Wood to attend Friendsof Library events on 4/5/04 and 20/5/04.
16 senior management structure executive summarysenior management structureOur management structure is comprised of executive managementand a senior management group. Executive management is comprisedof the Chief Executive Officer and three directors who oversee policy,strategic direction and overall management of the organisation. The seniormanagement group is comprised of 15 divisional managers. They areresponsible for tactical management and day to day operations.DirectorCorporate & GovernanceStephen PayneB ComPhone 4227 7280Extensive experience as senior finance and ITexecutive for BHP, AAP, Arnotts, State <strong>Government</strong>(Transport & Planning Portfolios) and Federal<strong>Government</strong>. Appointed Director in 2002. Responsiblefor Administration & Information Technology, Finance,Human Resources, Property, Communication & PublicRelations, Marketing and Corporate Development.CEORod OxleyPSM, B Bus, FCPA, FIMM, FAIMPhone 4227 7009Background in financial management prior tocommencement at <strong>Wollongong</strong> <strong>City</strong> <strong>Council</strong> as<strong>City</strong> Treasurer in 1980. Appointed to the positionof General Manager (now CEO) in 1988.Director<strong>City</strong> ServicesMike HydePhone 4227 7113Extensive operational management experiencecombined with strategic planning and service deliveryskills. Appointed Director in 2001. Responsible forCommunity & Cultural Services, Recreation & NaturalResources, Works, Library and Engineering Services.DirectorEnvironment & PlanningDavid BroydBA Urban Regional Planning (Hons)Phone 4227 7479Over 25 years experience in local government strategicplanning and development assessment. AppointedDirector in November <strong>2003</strong>. Responsible for StrategicPlanning, Development Assessment & Compliance,Environment & Health and Design.
senior management structure executive summary 17ManagerAdministration& InformationTechnologyLyn KofodMBA, B CommPhone 4227 709226 years experience inIT management in privateand public sectors.Appointed in 1994.• Legislation & Elections• <strong>Council</strong> & CommitteeSupport• Information Technology• Administration• Legal & RiskManager HumanResourcesTrevor JonesB ComPhone 4227 706431 years experiencein a range of humanresources activities in anumber of positions in theprivate and public sector.Appointed manager in2000.• Human ResourcesManager PropertyPhillip MansfieldLLBPhone 4227 709520 years experience inproperty managementand legal servicesin public and privatesectors. Appointedmanager in <strong>2003</strong>.• Property Development• Property Management• Tourist Parks• Crematorium &Cemeteries• Statutory Property• Community LandManagerCommunications& Public RelationsNeryl EastMA, PhDPhone 4227 706223 years experience inorganisational mediaand public relationsmanagement; television,radio and print journalism.• CommunicationStrategy• Media Liaison• Events & Functions• Website & Advertising• Internal CommunicationsManager CorporateDevelopmentDick DowsePhone 4227 709321 years local governmentexperience in variety ofroles including TQM &Business ExcellenceManagement andcorporate development.• Organisational Planning• Change ManagementStrategies• OrganisationalPerformance Monitoring• Learning & Leadership• Management <strong>Report</strong>ingManager FinanceBrian JenkinsB. BusPhone 4227 764419 years experience infinancial managementwithin the industry.Appointed managerin 2002.• Financial Accounting• ManagementAccounting• Accounting Services• Rates• Revenue• Treasury FunctionsManager Community& Cultural ServicesIan McClintockBA, Mpol (Soc Pol)Phone 4227 723523 years experience in arange of positions within thecommunity services sectorbefore joining <strong>Council</strong> in 1994.Appointed manager in 1996.• Community Development• Community Facilities• Aged & DisabilitiesServices• Youth Services• Cultural Services• Children’s ServicesManager Recreation& Natural ResourcesAndrew StratfordMBA - Hort. Cert - Adv Cert.MgtPhone 4227 704424 years experience in thehorticultural, environmentalmanagement and recreationindustry. Appointed managerin <strong>2003</strong>.• Conservation & NaturalResources• <strong>City</strong> Parks• RecreationManager WorksJohn ShepherdARMIT (Dip Civ Eng)Phone 4227 7216Involved in the engineeringconstruction industry in boththe public and private sectorsfor over 28 years. Appointedmanager in 1999.• Roads & Drainage• Infrastructure Management• Engineering SupportManagerEngineering ServicesJoe ScimoneBE Grad Ind Rel, MBA, FIE (Aust)Phone 4227 7188Experience in design andconstruction of civil engineeringprojects in public and privatesectors. Appointed managerin 1992.• Buildings• Operational Support• Emergency Services• Waste Collection & Disposal• Recycling• Materials SupplyManagerLibrary ServicesSusie RobertsAALIAPhone 4227 740930 years experience in anumber of local governmentlibraries before joining <strong>Council</strong>.Appointed manager in <strong>2003</strong>.• LibraryManager Strategic PlanningFay StewardBA (Psychology)GDURP Grad Dip Bus. AdminPhone 4227 731715 years experience in strategicplanning sector. Appointed managerin <strong>2003</strong>.• Strategic Planning• Traffic & Transport Management• Heritage Conservation• Section 94• Urban DesignManager DevelopmentAssessment & ComplianceJohn GilbertGDURP, MAIBSPhone 4227 728428 years experience in localgovernment, working as a senior officerin the fields of Environmental Health,Building, Statutory and StrategicPlanning. Appointed manager in <strong>2003</strong>.• Development Assessment• Building Inspections• Fire Safety• Subdivision ApprovalsManager DesignPeter KofodBE Civil (Hons), MBAPhone 4227 7208Worked in the civil engineering and ITfields for 25 years. Appointed managerin 1992.• Civil• Design• Flood Mitigation• Land Information• GIS• Landscape Architecture• Structural/ArchitecturalManager Environment& HealthLisa MillerBScPhone 4227 733118 years experience in environmentalmanagement in public and privatesectors. Appointed manager in 1999.• Environmental Policy & Management• Environmental Protection• Health Protection, Inspections& Complaints• Animal Management• Environment & Health Education• Ranger Services
18 planning and reporting framework executive summaryplanning frameworkHOW WE PLAN WHAT WE DO. <strong>Wollongong</strong> <strong>City</strong> <strong>Council</strong> has a tieredplanning framework that cascades organisational plans from the strategicplan through to individual work plans. This linkage allows our employees to make thetransition from the conceptual to the operational level.Strategic PlanOur strategic plan, Focus on the Future, has a ten year focus. It identifies and expresses theaspirations held for <strong>Wollongong</strong> over that period and develops clear directions for the city.The community, councillors and staff all worked together to identify the direction for<strong>Wollongong</strong>’s future in this plan.input > councillors > officers > community and key stakeholders > feedback Corporate PlanOur five year rolling corporate plan supplements the strategic plan. It provides clear directionto the organisation and highlights the implementation of key initiatives. More specifically, it isa way to communicate our goals, directions, key objectives and performance indicators towhich we aspire over the next five years. It also outlines specific projects that will commencein the coming year. The plan is structured around 11 programs: Corporate Governance, <strong>City</strong>Planning and Development, Infrastructure, Environment and Health, Commercial Development,Waste Management, Recreation and Natural Resources, Community and Cultural Services,Library Services, Organisational Services and Environmental Management Program. Eachrepresents a principle activity and provides a strong framework for the 42 functions containedwithin the programs. Reviewed annually and placed on public exhibitions, it allows us to setfuture policy directions in partnership with the community whilst, at the same time, improvingthe corporate planning process.input > councillor > officers > community and key stakeholders > feedbackBusiness PlanBusiness plans are linked to each functional area and designed to help achieve objectives setout within the corporate plan. The business plans provide detail action plans on how we will goabout achieving the objectives and performance indicators outlined in the corporate plan. Theyalso provide operational information relating to OH&S, employee development and training,workplace reform, industrial matters and job redesign. The business plans are produced on anannual basis and submitted to executive management for review and endorsement.input > workgroups > management > executive > feedbackWork PlanEmployees have their own work plans from which they perform their day to day operations.Each work plan links directly to the appropriate business plan and outlines major tasks andresponsibilities for each employee or work team. Key performance indicators from the workplan are part of the employee’s development and review process. Each employee, or workteam, is assessed on the extent to which they have fulfilled their objectives over the previoustwelve month period. Exceptional performance is recognised and rewarded through the StaffRecognition and Achievement Awards and salary reviews.input > employees > management > feedbackplanningcommunity andcouncillorsvision, mission, valuesstrategic plancorporate planwork planscouncil services
planning and reporting framework executive summary 19reporting frameworkcommunity, councillorsand awards feedbackannual reportquarterly corporatereviewsmonthly progressreportsreportingHOW WE REPORT WHAT WE DO. Complementing our planning process isa tiered reporting process that defines our progress in meeting objectivesand key strategies. This linkage allows management and employees to further refine theirstrategies to achieve the organisation’s vision and mission.Monthly Progress <strong>Report</strong>sEach division reports on its business plan outcomes on a monthly basis. These are submittedto executive management for consideration. The reports outline performance against businessplan objectives and include other management information directly relating to governanceissues. Budgeting and other key financial information is also part of this process.input > workgroups > management > executive > feedbackQuarterly Corporate ReviewsThe quarterly corporate reviews report on progress on the objectives, strategies, activities andkey performance indicators outlined within the corporate plan and are submitted in the sameformat. A financial assessment of performance for the quarter is also included in the review. Ifnecessary, the quarterly reporting process allows for any necessary adjustments or fine tuningto be made to the corporate plan. The reviews ensure that the community is regularly updatedon the progress of all initiatives contained within the corporate plan. Our aim as <strong>Wollongong</strong>’sgoverning body is to report and deliver the contents of the plan to ensure the best outcome forthe city.input > workgroups > management > executive > councillors > community >feedback<strong>Annual</strong> <strong>Report</strong>The annual report details our success, or otherwise, in meeting the objectives, key activitiesand performance indicators outlined in the corporate plan. It is structured around the 11programs highlighted in the corporate plan with each program representing a principleactivity of <strong>Council</strong>. The annual report also provides a range of information required under theLocal <strong>Government</strong> Act, 1993, that must be disclosed by councils each year. These relateto corportate governance, access and equity, public disclosure and special needs services.The annual report also contains detailed externally audited financial statements. In all, it isa comprehensive document aimed at accountabiity and clarity in reporting organisationalperformance.input > management > executive > councillors > department of local government >key stakeholders > community > reporting awards > feedbackFeedback MechanismsOpportunities exist at each stage of the planning and reporting process to solicit and receivefeedback from key stakeholders and the community. Feedback is crucial in planning anddelivering services within a sound performance management framework.
20 corporate governance performance against objectivescorporate governanceProgram Goal To provide corporate governance at the locallevel that meets the requirements of state legislation and exercisesstrategic leadership and direction for our role in the community.Corporate Governance ExpenditureFunctions:Corporate Development $0.458mCommunications and CorporateRelations $1.673mEconomic Development $0.905mExecutive Management $3.382mCorporate Governance Expenditure vs.Total <strong>Council</strong> ExpenditureTotal CorporateGovernanceexpenditure was$6.418mor 3.68% of total<strong>Council</strong> expenditureThe mayor is in a position to ensurepositive relationships between councillors,administration, and the CEO. Good decisionmaking is facilitated through skilful chairing ofmeetings and by ensuring that all speakersare heard and able to get their viewpointacross. Concepts such as participation,communication, involvement, consensus,mutual respect and listening are importantto the role of mayor and play a key role inensuring <strong>Council</strong> operates successfully. Themayor supports good governance throughhigh standards of ethics in all dealings.Corporate Governance IncomeFunctions:Corporate Development - nilCommunications and CorporateRelations $0.136mEconomic Development - nilExecutive Management $1.356mCorporate Governance Income vs.Total <strong>Council</strong> IncomeTotal CorporateGovernance incomewas $1.492mor 0.85% of total<strong>Council</strong> incomeRole of <strong>Council</strong>lors<strong>Council</strong>lors are required to direct and controlthe affairs of <strong>Council</strong>, in accordance with theLocal <strong>Government</strong> Act,1993. They participatein the optimum allocation of resources for thebenefit of the city, and play a key role in thecreation and review of policies, objectivesand criteria in regard to regulatory functions.They are also required to review organisationalperformance, service delivery, managementplans and revenue policies.Our Definition ofCorporate GovernanceCorporate Governance covers the rulesand regulations within which an organisationworks to demonstrate high levels of integrityand accountability in the conduct of itsbusiness. It includes the Chief ExecutiveOfficer’s (CEO) responsibility to overseethat the business is properly and honestlymanaged. The practice of good governanceis critical to ensuring that an organisationoperates on a legal and ethical basis,that decisions are taken in the interestsof stakeholders, and that the organisationacts as a good corporate citizen.In the public sector, good governance canmake a significant contribution to improvingpeople’s lives. When local governmentspractise good governance, more effectiveuse is made of their limited resources, thecommunity is more connected and engaged,and receive better services. Good governanceoptimises outcomes to meet the higheststandards of public accountability.<strong>Council</strong>’s CharterSection eight of the Local <strong>Government</strong> Act(1993) provides the charter for councils.This defines our role to act consistentlyand without bias, to inform the communityand state government of all activities, andto account for public assets for which weare responsible. We are also required tobe a responsible employer and to properlymanage, develop, protect, enhance andconserve the local environment.Elected RepresentativesRole of Lord MayorSections 226 and 232 of the Act outline theresponsibilities of elected representatives asmembers of the governing body of <strong>Council</strong>.Our 2004 Governance Manual details thewider roles of the mayor. These are toexercise, in cases of necessity, policy-makingfunctions of <strong>Council</strong>; exercise such otherfunctions as determined; preside at <strong>Council</strong>meetings; and carry out civic and ceremonialfunctions of the mayoral office.<strong>Council</strong>lors are responsible for effectinggood corporate governance through theiraccountability, compliance with the law, andby ensuring that management direction isaligned with community interests. Internalaudit and risk management functions supportelected representatives in exercising goodcorporate governance through effectiveaccountability and reporting processes.The interests of the city’s residents andratepayers must be considered at all times,along with providing leadership and guidance.Effective communication is a vital part ofthis process. As elected representatives, thecommunity relies on councillors to lead, directand govern activities on their behalf.Governance ManualA Governance Manual was developed in2004 to support and guide newly electedrepresentatives in their actions anddeliberations. The manual provides contextand detail for both councillors and theLord Mayor, key governance policies of theorganisation, and a revised Code of Conduct.
corporate governance performance against objectives 21<strong>Council</strong> Meetings and DecisionsOur committee, reference and advisorygroup systems were revamped in 2004to permit councillors to focus on issuesand to allocate sufficient time for debate,discussion and effective decision making.Additionally, all <strong>Council</strong> proceedings aretranscribed. This policy is an importantfactor in evidencing the transparency ofour decision making processes.Consistent with the adoption of the 2004Governance Manual, we also revised ourcommittee structure to streamline reviewprocesses and the conduct of businessgenerally. This ensures that <strong>Council</strong> and otherstakeholders are able to access reports at theearliest opportunity, with a view to supportingmore informed and timely debate.Good Governance ThroughCommunity Consultation<strong>Wollongong</strong> <strong>City</strong> <strong>Council</strong> recognises themajor role the community plays in ourdecision making processes. Effectivecommunications are the key to ensuringthat service delivery is in line with communityexpectations and to demonstrate opennessand transparency in our dealings. A rangeof communications processes are in place,including community access forums,focus groups, neighbourhood committees,community surveys and various other avenuesfor public comment on specific issues.<strong>Council</strong> ManagementRole of Chief Executive OfficerSection 335 of the Local <strong>Government</strong> Actoutlines the responsibilities of the CEO(General Manager). These are to managethe organisation’s day-to-day operations;exercise relevant delegated functions; direct,appoint or dismiss staff; and implement anequal employment opportunity plan. Theperformance of the CEO is measured througha performance agreement, as part of afive-year employment contract.Leadership and DirectionOur management structure is made up ofan Executive Management Committee andsenior management group. The ExecutiveManagement Committee, comprised ofthe CEO and three directors, is responsiblefor policy, strategic direction and overallmanagement of the organisation, whileensuring daily operations are effective andaccountable. The key activities of seniormanagement are to manage strategicrelationships with stakeholders, ensure<strong>Council</strong>’s interests are well presented at alllevels of government, formulateorganisational strategies and supportingpolicies, and to ensure services arealigned with community needs. Executivemanagement must also develop strategiesfor workplace agreements that balancethe needs of our people with those of thecommunity and to develop financial strategiesthat provide options and priorities forservice delivery.The senior management group iscomprised of 15 divisional managerswho preside over day-to-day specialisedoperations. Each member of the executiveand senior management is employedon a five-year performance contract,with assessments undertaken on anannual basis. An enhanced performancemanagement system was implementedduring the year for both directors andmanagers and reviews are scheduledto take place in July 2004.Corporate Management<strong>Council</strong> has a well-established set ofcorporate values and governanceprocesses that are embedded into ourorganisational culture. These values andprocesses influence our business activitiesand determine the overall ethical behaviourof the organisation. <strong>Council</strong>lors and staffare guided by a set of key documentscontained within our Governance Manual,including our Code of Conduct.<strong>Council</strong>lors and management arecommitted to the principles of continuousdisclosure and a proactive approach isadopted to ensure this obligation is fulfilled.This includes a requirement to declarethe nature of any interest they may havein business to be dealt with by <strong>Council</strong>,and staff disclosing their pecuniaryinterests if they are involved in theacquisition of goods and services.The organisation also maintains acorporate gift and donations registerthat is available for perusal by thecommunity on request.Assessing Service DeliveryOur service delivery is evaluated throughcommunity surveys, undertaken either ona ‘project by project basis’ or as an overallperformance survey. Executive and seniormanagement review results, implementingactions wherever necessary.In <strong>2003</strong>, IRIS Research was commissionedto undertake a survey to assess ourlevel of communication with the community.Feedback highlighted the need toexpand our communication activities,particularly those relating to planningand development issues, the localenvironment and general <strong>Council</strong>decisions. Respondents also indicatedthat they would like to hear less about<strong>Council</strong> politics. In light of these results,we have refined our internal and externalcommunications policy, addressingall matters raised in the survey results.Monitoring Workplace StrategiesOur Enterprise Agreement 2001-2004contains a series of key performanceindicators that are closely monitoredby the organisation. Progress is submittedon a monthly basis for considerationby executive management and a jointconsultative committee, representingmanagement and employee interests.Above: CEO Rod Oxley is responsiblefor overall operational management andperformance at <strong>Wollongong</strong> <strong>City</strong> <strong>Council</strong>.PERFORMANCEINDICATORSSick leaveResult in line with previous year.Carers’ leaveImproved result.Lost time injury frequency rateImproved result.Medical treatment injuriesImproved result.Lost work days due to lost time injuriesSignificant improvement.Returning to normal dutiesafter injury managementImproved result.Employees undertaking learningand development activitiesTarget exceeded.Number of learning anddevelopment hours per employeeTarget met.Attendance at learning anddevelopment activitiesTarget marginally under-achieved.
22 corporate governance performance against objectivesOutlook for 2004-05Our corporate goals reachacross divisional and corporateboundaries to provide guidancein the activities of all our staff.One of the key factors in beingable to achieve these goals is bymonitoring how well we perform.In the coming year we will reviewkey performance indicators toprovide a more comprehensive setof measures for each goal.Code of ConductOur employees operate under a strict codeof conduct. We strive to maintain highstandards of personal integrity and to ensurelegal compliance and adherence to bestpractice policies. Apart from setting legaland ethical standards for our employees, thecode of conduct promotes a spirit of serviceto the community, responsible managementpractices, and high levels of organisationalcompetence and efficiency. The codeof conduct was reviewed in <strong>2003</strong>-04 toensure that it continues to be relevant to theorganisation. This involved the formation of afocus group to identify new areas for inclusionwithin the policy. The revised code wasreleased for discussion in April 2004 as a keycomponent of our new Governance Manual.Internal Audit ProgramKPMG now undertakes our internal auditactivities. This initiative provides an increasedlevel of confidence in our business controlsand operational performance, in line withprivate sector practice.Audit and Governance CommitteeThe main function of the committee is toprovide an internal control framework to assistand advise <strong>Council</strong> on fulfilling its corporategovernance responsibilities, in relationto financial management and the overallmanagement of risks.Voting membership is comprised of twocouncillors, our CEO and a representativefrom an external organisation (by invitation).One member of the committee must have afinancial background. Non-voting membersare the Chief Financial Officer, ManagerFinance, up to two representatives from ourexternal auditors, PriceWaterhouseCoopers(PWC) and up to two representatives from ourinternal auditors KPMG. One of the non-votingmembers also acts as committee secretary.The committee fosters stronger governanceby observing international best practicein financial control and management,and effective committee operation. Thecommittee’s charter and membershipsupport the internal audit program to bestpractice standards. KPMG has prepareda development and training program forthe internal audit function, targeting bothcommittee members and senior management.Conduct CommitteeA Conduct Committee was established duringthe year, replacing the previous positionof internal ombudsman. Its charter is toinvestigate corrupt conduct, waste of publicresources, breaches of our Code of Conductor any complaint made by a member of thecommunity. Close links will be forged betweenthe <strong>NSW</strong> Ombudsman’s office and theIndependent Commission Against Corruption(ICAC). The committee is comprised of theLord Mayor, CEO, two councillors and anindependent external person appointed by<strong>Council</strong>. It is hoped that this initiative willprovide a greater level of independence andimpartiality to the investigation of any matter.Organisation Risk AssessmentEach year before the implementation ofannual and cyclical review programs, anorganisation-wide risk assessment isundertaken. This is designed to evaluate,monitor and control key operational risks andto identify areas for specific internal auditreview. It also outlines the nature and extentof audit activity required to improve the overallrisk profile of the organisation and to optimisecorporate governance performance.Risk Management PolicyWe continue to improve our risk managementpolicies in order to minimise, or preferablyeliminate, personal injuries, damages toassets (including the environment) anddamage to the reputation of <strong>Council</strong>.Corporate AssetProtection System (CAPS)The CAPS system is our formal process forthe identification, evaluation and prioritisationof risks. This is managed in three ways:strategic, formal and informal. Strategic riskmanagement involves our obligation to complywith the law and to effect appropriate liabilityinsurance coverage. Ongoing action is takento ensure that we uphold these requirements.Formal risk management processes identifyexisting and known risks, as well as risks thathave not yet materialised into damageto people or property.Pre-emptive treatment of these risks is anessential component of comprehensive riskmanagement. Informal risk managementoccurs when risks are identified through aninformal means from many sources, includingmembers of the public. Responses areinitiated on receipt of the information.The CAPS system was supplemented thisyear by an external risk evaluation undertakenby KPMG. The evaluation will aid decisionmaking and provide evidence of duediligence in the defence of litigated claims.The Executive Management Committeeensures that risk management policies areimplemented, while our Legal and Riskbranch oversees the management of risksat a strategic level, both on a formal (CAPS)and informal basis. The branch preparesand reviews documentation for all activitiesrequiring risk protection and deliversworkshops on legal compliance. For detailedinformation on our risk management projects,please refer to the Legal and Risk functionon page 66 of this report.Corporatisation ofForté Marketing and DesignFollowing lengthy investigation into themerits of corporatising our marketing andadvertising arm, and in light of external adviceregarding aspects of the unit’s operations,Forté Marketing and Design was elevatedto an independent division of <strong>Council</strong> witha management committee, represented bythe CEO, all directors, two senior managers,and Forté management. The managementcommittee will lead the organisation’smarketing and advertising efforts and willensure the highest standards of service toboth internal and external clients.Financial ManagementStrategy Group (FMSG)The FMSG was established in <strong>2003</strong> to leadthe organisation’s financial affairs and actas the peak body for financial policy settingand direction. A voting core is made upof executive committee members and theManager Finance, who are responsible forensuring its sustainability, governance anddirection. Responsibilities of the group aremedium to long-range financial forecasting;revenue policy, assessment of debt capacityand allocation to capital works projects;operational expenditure trends; review ofmajor projects; cash flow and reservesmanagement; and the strengthening ofcorporate planning linkages. During theyear, the FMSG achieved the publication ofan organisational accounting and revenueprocedure; oversight of the internal audit andrisk assessment processes; review of section94 management and reporting issues; and theoversight of budget allocations.New Financial Management SystemsOur new Financial Management InformationSystem, FinanceOne, has facilitated fullaccrual accounting and detailed functionaland project reporting. This new format willbe reported through the Quarterly CorporateReview process in the coming year.
corporate governance performance against objectives 23Electronic Orders and PaymentsElectronic fax streaming for orders wasintroduced, in association with FinanceOne,and we have actively pursued suppliers toconvert to electronic payments. This not onlysaves funds and resources, but it also ensuresa more reliable payment system.Corporate DevelopmentOrganisational Learningand LeadershipWe adhere to the Australian BusinessExcellence Framework as our managementphilosophy. This is reinforced throughthe implementation of an organisationaldevelopment program that consisted ofthree stages. The first two stages requiredexecutive, divisional managers and assistantmanagers to focus on organisational theory,leadership concepts, systems thinking, teamdynamics and the understanding of BusinessExcellence Principles. As a result of theprogram a new management framework wasdeveloped with the focus on vision, mission,values, key goals and principles. <strong>Council</strong> hassince endorsed this framework through thecorporate planning process. The next stagewill be to incorporate these strategies to alllevels of the organisation. The training materialthat supports this stage is now developed andtraining is scheduled to begin shortly.Our 2004-08 Corporate PlanThe draft 2004-08 corporate plan was placedon public exhibition in May 2004, providing anopportunity for the community to contributetowards the future direction of our worksand services. During the exhibition period,the plan was promoted through newspaperadvertisements and on the Internet. Copieswere also made available to the communityat the administration building and throughour library network. As a result of the publicexhibition period, 12 submissions werereceived encompassing 84 issues, withall submissions taken into considerationduring the finalisation process. The finalisedcorporate plan, and its accompanying budget,was adopted by <strong>Council</strong> in June 2004.New Resource Allocation ModelDuring the preparation of the corporate plan,a funding allocation model was developedto ensure a nexus between the plan andour annual budget. The model was usedto identify and prioritise projects requiringfunding over the life of the plan.LGMA Management ChallengeTwo teams were entered into the annual Local<strong>Government</strong> Managers Australia (LGMA)Challenge held in March 2004. Competing asThe Flame and Troppo la Gong, the teamsgrappled with a range of problems focusedon challenging skills in leadership, influence,teamwork and advocacy. The tasks werehelpful in highlighting a range of current issuesfacing councils, for instance, the developmentof a community leadership strategy focusingon drug related problems, staff retention andcommunication with local residents.Management <strong>Report</strong>ingEach division prepares a monthly report basedon business plan outcomes. This year, a newbusiness-planning template was developedfor the organisation, resulting in betterintegration between individual business plansand the corporate plan.Achievement and RecognitionAwards SchemeOur Staff Achievement and RecognitionAwards continue to publicly acknowledgethe invaluable contribution and outstandingachievements of individual staff membersand workplace teams. This year, a total of143 employees were nominated by theirpeers, this was comprised of 30 individualand 22 group nominations. All recipientswere presented with an Achievement andRecognition Award certificate, and invited toattend an end of year celebration luncheonhosted by the Lord Mayor <strong>Council</strong>lor AlexDarling and CEO Rod Oxley.Corporate RelationsCommunity Feedbackon <strong>Council</strong>’s ServicesThe results of our latest community survey,conducted by IRIS Research, were releasedin July <strong>2003</strong>. The survey provided valuablefeedback on areas that need more attentionso that we can improve our communicationprocesses. As well as an overall decline inpositive community perception about <strong>Council</strong>,the survey identified a number of specificareas where the community felt less satisfiedwith our performance.Major issues of concern were roadmaintenance, development, environment,community involvement and consultation, andjob creation. In response to these, work toenrich our performance is either completedor in progress. However, more emphasis willbe required on conveying information to thepublic and a media strategy and action planwere designed to address these areas.Sister <strong>City</strong> RelationshipsPositive relationships and informationexchanges continue between <strong>Wollongong</strong>and our sister cities of Kawasaki, Japan;Ohrid, Macedonia; and our Friendship <strong>City</strong>of Longyan in China. The strong relationshipbetween the sister cities has resulted invarious programs. For instance, localstudents studying Japanese, were sponsoredin Kawasaki to embark on intensive study.The annual Kawasaki Junior CulturalCompetition, now in its 14th year, continues,as have opportunities for students from the<strong>Wollongong</strong> Conservatorium of Music toperform in Japan.A visit by a renowned Kawasaki opera singerwas the highlight of the <strong>Wollongong</strong>-Kawasaki15th anniversary delegation to <strong>Wollongong</strong>.During the year, the city of Longyan extendedan invitation for <strong>Wollongong</strong> business andtourism authorities to participate in a highprofile exhibition in China.Staff Feedback ProcessesBecause a formal staff survey was notconducted in <strong>2003</strong>-04, the CEO and directorsvisited all work sites to discuss major topicsand to seek staff feedback on areas thatcaused concern. The information gatheredwas subsequently reported back to divisionalmanagers for response and action. Thefortnightly Staff News Update, along with themonthly newsletter, remains an importantsource of information for staff. Development ofthe Intranet site also enhanced staff access toprompt information.Logistics for <strong>2003</strong> Rugby World CupTwo matches of the Rugby World Cup wereheld in <strong>Wollongong</strong> in October <strong>2003</strong>. Asthe timing coincided with the annual Viva laGong Festival, major logistic operations wererequired to ensure both events ran smoothly.Comprehensive media and promotionalstrategies were employed to publicise theseevents. We are pleased to report that bothevents were tremendously successful andfocused international attention on <strong>Wollongong</strong>.Below: Renee Campbell, CorporateDevelopment Division, responsible forcoordinating production of our 2004-05Corporate Plan.
24 corporate governance performance against objectivesOutlook for 2004-05Major initiatives for the comingyear are to implement the newcommunications strategy and acorporate sponsorship fund strategy.The latter provides a mechanism bywhich <strong>Council</strong> can provide in-kindsupport to appropriate organisationsor community events. We will alsowork to improve the feedback loopto gauge the views and opinions ofour staff on workplace issues.Our focus on sister-city relationshipswill continue, as will the coordinationof civic and community events.Communications StrategyAdditional activities were introduced during<strong>2003</strong>-04, as part of our communicationstrategy for the organisation. These includedthe distribution of two newsletters tohouseholds across the city, reintroduction ofcommunity service announcements on WINTelevision, a radio campaign focusing on keycorporate messages, and the introduction of afortnightly column in the Illawarra Mercury andNorthern Leader. The strategy was reviewedon an ongoing basis.Crown St Mall MaintenanceMaintenance and beautification workscontinued in the Crown St Mall in <strong>2003</strong>-04. Ashopper survey conducted by IRIS Researchin <strong>2003</strong>, found that shoppers still place astrong emphasis on the cleanliness andappearance of the mall and are quite satisfiedwith its current state. Considerable effort wasspent on promoting the mall via media andpromotional activities through <strong>Wollongong</strong><strong>City</strong> Centre Ltd. This helped to maintain themall’s status as the region’s most popularshopping destination. Results from LeyshonRetail Overview <strong>Report</strong> show that the mall stillattracts the highest retail expenditure of anyshopping destination in the Illawarra.In response, 2,584 positive stories werepublished or broadcast in the local media,against 1,038 negative stories. Auspiciously,2.5 positive stories were reported for eachnegative report.The Lord Mayoral column in the monthlyIllawarra Business supplement of the IllawarraMercury, and the continuation of a weeklycolumn in the <strong>Wollongong</strong> Advertiser, helpedkeep the community informed of currentprojects and initiatives.Additionally, a fortnightly community updatecolumn was introduced in the IllawarraMercury and Northern Leader. An informationcampaign commenced on both WAVE FMand i98 FM. We also took part in the <strong>Council</strong>Grapevine segment on VOX FM.Major Events in the <strong>City</strong>During the year, two business luncheonswere hosted by the Lord Mayor to welcomeofficial guests to the <strong>City</strong> of <strong>Wollongong</strong>.One occasion was to welcome the ChiefCommissioner of Police for Victoria, MsChristine Nixon, and another for the SecretaryGeneral of the Australian Red Cross, MsMartine Letts.Above left: Communications and mediarelations strategies are built into majorprojects to encourage community input.Other major activities included the inauguralLakeside Ride, the Local <strong>Government</strong>Aboriginal Network Conference, the LordMayor’s Giving Tree, a visit by HMAS<strong>Wollongong</strong> for Australia Day, Local<strong>Government</strong> Week and receptions for suchdignitaries as the Consul General of Thailand.Fund Raising ActivitiesThe Lady Mayoress once again supported theMothers Day Family Fun ‘n’ Run, which raisedapproximately $20,000 for the National BreastCancer Foundation.In addition, $7,000 was raised for the Lightand Hope Schizophrenia Awareness Appeal,as a result of the annual Lady MayoressLuncheon and Fashions in Spring events.<strong>Wollongong</strong> Gateway SignageFour entrance billboards leading into<strong>Wollongong</strong>, on the F-6 Freeway and Appin,Picton and Shellharbour roads, were updatedin early 2004 to showcase the city.The photographs selected are iconographicimages of <strong>Wollongong</strong>, mainly depictingthe coastline and harbour areas. Thebillboards are not only aimed at marking theofficial entrance to the <strong>Wollongong</strong> Local<strong>Government</strong> Area, but also to encouragetravellers to break their journey by visitingsome of the city’s major scenic attractions.Effective Media LiaisonMedia liaison is a key part of ourcommunications strategy. In all, 373media releases were issued in <strong>2003</strong>-04.These generated an average of 4.4media stories per release.The number of media releasesissued by our Communicationsand Public Relations Division hasstabilised, following an initial surgein 2001-02 that coincided withadditional resourcing levels.The number of media storiesgenerated from an individual mediarelease has decreased slightlyin recent years and is largelyattributed to the reduced numberof media outlets in the area.While there has clearly beenan increase in negative mediacoverage, a strategic approach tomedia relations has seen positivestories far outweigh any negativecomment.
corporate governance performance against objectives 25city planning and developmentProgram Goal Provide direction for the future growth andsustainability of the <strong>City</strong> of <strong>Wollongong</strong>.<strong>City</strong> Planning and Development ExpenditureFunctions:Building Compliance $0.544mDevelopment Assessment $1.615mStrategic Planning $2.181mSubdivisions $2.234mTraffic and Transport $0.861m<strong>City</strong> Planning and Development IncomeFunctions:Building Compliance $0.714mDevelopment Assessment $2.763mStrategic Planning $0.543mSubdivisions $0.182mTraffic and Transport $0.409m<strong>City</strong> Planning and Development Expenditure vs.Total <strong>Council</strong> ExpenditureTotal <strong>City</strong> Planning andDevelopment expenditurewas $7.435mor 4.26% of total <strong>Council</strong>expenditure<strong>City</strong> Planning and Development Income vs.Total <strong>Council</strong> ExpenditureTotal <strong>City</strong> Planning andDevelopment incomewas $4.611mor 2.63% of total<strong>Council</strong> incomeTourist Mine ProjectInvestigations continued into the feasibilityof creating a regional tourist mine facility inthe <strong>Wollongong</strong> area. <strong>Council</strong> endorsed thefeasibility report and the next stage is gearedto garner further stakeholder support, alongwith project funding.<strong>Wollongong</strong> Image CampaignThe five year <strong>Wollongong</strong> Image Campaignhas played a significant role in improvingperceptions of the city as a desirableplace in which to live, work and play.Tracking research undertaken over the lifeof the campaign has evidenced a majorperceptual shift in key target markets.<strong>Wollongong</strong> is rapidly shedding its formernegative image and increasingly seen asa vibrant and progressive cosmopolitancity surrounded by abundant and diversenatural beauty. <strong>Wollongong</strong> also offersa viable lifestyle alternative to places likeSydney or small regional areas.Economic DevelopmentCentre for Excellencein Telecommunication<strong>Council</strong> remains a key member of theIllawarra Telecommunications Task Forcewith the year’s focus on gaining betteraccess to broadband cable, particularly toimprove business data communication withinthe city. Extensive work was also undertakenwith Telstra CountryWide and MCI over thedelivery of wireless broadband to the cityand region.A major boost to the telecommunicationsproject, and to <strong>Wollongong</strong>’s standing asthe <strong>City</strong> of Innovation, came with an earlieragreement for the development of the<strong>Wollongong</strong> Innovation Campus on thecurrent Brandon Park site. The joint venturebetween the state government, universityand <strong>Council</strong> will see the transformation of the17 hectare site into a centre for informationtechnology, communications, film, televisionand multimedia, in addition to universityfacilities. Work has begun on this project.New Investment OpportunitiesIn conjunction with the Department of Stateand Regional Development, discussions wereheld with a range of businesses interestedin relocating to <strong>Wollongong</strong>. Furthermore,<strong>Council</strong> worked to address longer-termissues, including the development of cohesivestrategies for all aspects of economicdevelopment. Progress was made in garneringkey stakeholder support for strategy settingand furthering economic development withinthe city. Other initiatives focused on forgingstronger links with the Southern <strong>Council</strong>sGroup and key state and federal agencies.Economic Development StrategyThe Economic Development Roadmap<strong>Report</strong> for the region was finalised withBuchan Consulting. Extensive key stakeholdersupport obtained during the preparationperiod, resulted in the creation of an officeof economic development. Its portfolio is tomanage economic development, implementan economic development strategy andprovide seamless interaction and support forbusiness prospects.During the life of the campaign, in excessof $10 million worth of media exposurewas realised, including articles in internationalpublications, focusing on the city’s tourismand lifestyle. The key challenges for thefuture centre on maintaining the momentumin overhauling the city’s image, in addition tocontinuing to support those aspectsof economic and social development thathave made <strong>Wollongong</strong> an increasinglydesirable location.A Buoyant Local EconomyThe local economy is in a very healthyposition with business confidencerecording a strong run in positive territory.The finance, property and businessservice sectors consistently exhibit strongresults. The construction sector was verybuoyant during the lifetime of the<strong>Wollongong</strong> Image Campaign, with firmgrowth also recorded in the retail andhospitality industries. Tourism activityis rebounding strongly with consumerconfidence remaining high and steady.This augurs well for the future developmentand expansion of the city.
26city planning and development performance against objectivesStrategic PlanningCommunity Involvementin Strategic ProjectsOur commitment to maintaining a high levelof consultation ensures that ampleopportunities exist for community input intothe larger, more significant, strategicplanning projects currently underway. While,at times, we might make decisions that maynot satisfy all parties, it is important thatall opinions are considered in the decisionmaking process. During the year, communityinformation and feedback sessionscontinued on the <strong>Wollongong</strong> Futures andthe <strong>City</strong> Centre Revitalisation projects. Atthe same time, new information programscommenced on the revitalisation of Daptoand Thirroul town centres.Dapto Town Centre RevitalisationThe Dapto town centre is a sub-regionalarea that serves the suburb of Dapto andsurrounding areas. The centre’s importancewill increase in future years, as it is destined toservice the needs of the West Dapto releasearea. During the year, we engaged consultantsto prepare a revitalisation strategy for the towncentre. We also conducted two well attendedworkshops with the local community to gathervaluable feedback and direction to guide futuredevelopment. The strategy will ensure thatDapto is well placed to serve the demands ofcurrent residents and the future population.<strong>Wollongong</strong> CBD RevitalisationThe city centre revitalisation strategyprogressed during <strong>2003</strong>-04, as part of ourcommitment to breathe new life into the<strong>Wollongong</strong> CBD.Below: <strong>Wollongong</strong> <strong>City</strong> <strong>Council</strong>’s strategyis to ensure that the <strong>Wollongong</strong> <strong>City</strong>Centre serves as a showpiece for theregion, reflecting an appropriate level ofcommercial, recreational, cultural andheritage facilities to meet community needs.These consisted of community meetings andmedia reporting, as well as the establishmentof focus groups and workshop sessions.The extent of community feedback receivedwas excellent and helped refine strategiesand overall direction.Progress on <strong>Wollongong</strong> Futures<strong>Wollongong</strong> Futures is a strategic planninginitiative that involves the local communityin a visioning exercise to consider the futurefor our city. The communications process iswell advanced with residents, governmentagencies, key stakeholders andnon-government organisations participatingin surveys and visioning workshops, alongwith the establishment of a CommunityAdvisory Group to refine vision statements.It is anticipated that the finalised strategy willbe presented to <strong>Council</strong> in late 2004.<strong>Wollongong</strong> Futures will inform the updateof our Local Environmental Plan, thestatutory planning tool that guides keyplanning decisions across the city. It will alsohelp guide our corporate plan and feed intoother key documents. The vision is that by2022, <strong>Wollongong</strong> will be a sustainable city,safeguarding the economic, social, culturaland environmental wellbeing of present andfuture generations.This saw the draft strategy placed onextended public exhibition until January2004, to allow for widespread communityinput. The document provides ideas,principles and development strategies forpublic domain, built form, heritage andconservation, sustainable development,amenity, pedestrian access, parking andservicing within the city centre.West Dapto ReleaseArea Structure PlanWest Dapto is one of the last significanturban release areas remaining within theIllawarra region, and will be an importantsource of new housing accommodationover the next 20 years. Located betweenthe escarpment and Lake Illawarra, thearea poses many planning challenges,including flooding, heritage, endangeredecological communities and the cost ofproviding necessary infrastructure. It isimportant that future urban developmentprovides ready access to public transport,local employment and lifestyle choices aswell as affordable and sustainable housing.By current estimates, the area will be ableto accommodate between 10,000 and15,000 new dwellings with a possiblepopulation of over 30,000 people.Outlook for 2004-05We are aiming to progresssuch major initiatives as theWest Dapto master planningproject, <strong>City</strong> Centre RevitalisationStrategy, Dapto town centrestudy, <strong>Wollongong</strong> Futures project,Port Kembla main street design,and the Thirroul CentreDevelopment Control Plan.Community consultation willbe a key factor in each projectreaching fruition.Another major focus will be toconsolidate existing developmentcontrol plans and review Section94 plans. At the same time, we willimprove our processes to facilitatequality decision making on strategicplanning issues. These includefacilitating appropriate developmentby encouraging design excellence,revitalising targeted town centresthat improves their economicand lifestyle opportunities;while protecting and promotinglocal heritage.
city planning and development performance against objectives27Bulli Tops Gateway ProjectWe are working with the Department of Lands,Tourism <strong>Wollongong</strong>, New South WalesTourism, the Illawarra Aboriginal Corporationand the lessee of the Horizon Cafe at BulliTops to develop a ‘gateway’ regional touristinformation centre and restaurant at the site.At the same time, we are negotiating withthe RTA and DIPNR to finalise the necessaryplanning rules to facilitate this importantinitiative.Wongawilli Heritage StudyThe 1999-2000 Dapto Community HeritageStudy identified Wongawilli village as havingheritage value. We subsequently initiated andcompleted the Wongawilli Heritage Study inlate <strong>2003</strong>. The study examined thesignificance of the village and its setting,along with the nearby mine. <strong>Council</strong>subsequently endorsed the recommendationsof the study, with the findings to beincorporated into future planning of theWest Dapto urban release area.Traffic and TransportTraffic Facilities Priority SystemOur traffic section has developed a prioritysystem to assist in managing competingrequests from the community relating to trafficfacilities. This enables greater equity andconsistency in the planning of facilities andmore informed and efficient delivery of trafficrelated projects for the community.Outlook for 2004-05Our strategic direction for thenext five-year period is to achievethe goals identified within theintegrated transport strategy‘Moving Together’. Major tasks forthe coming year are to finalise boththe pedestrian safety and speedmanagement strategies.We are also developing a range ofsystems to enhance the efficiencyof the Traffic Management function.Our aim is to improve the physicalroad environment to achieveenhanced traffic efficiency andsafety within the <strong>Wollongong</strong> region.Particular areas of focus include thecycleway plan, safety around localschools project and the PedestrianSafety Action Plan. We are dedicatedto providing quality and timelyadvice on all issues relating totraffic, transport and road safety.Key performance indicators will bemilestones reached in the integratedtransport strategy, number ofschools with improved safetyfacilities, and achieving guidelines inthe <strong>Wollongong</strong> Bicycle Plan.Traffic and Parking Issues in KeiravilleDuring the year, a summit meeting was heldin Keiraville in an attempt to ease trafficand parking problems experienced by localresidents. Attendees included the University of<strong>Wollongong</strong>, <strong>NSW</strong> state agencies, Roads andTraffic Authority, along with representativesfrom bus companies, student body anddelegated residents. Key objectives of thesummit were to review pre-existing parkingmanagement strategies and to develop anaction plan that promoted a more sustainablemethod of transport. The summit also aimedto improve amenity and safety for the broaderKeiraville area.<strong>Wollongong</strong> Traffic CommitteeThe <strong>Wollongong</strong> Traffic Committee is madeup of representatives from <strong>Council</strong>, <strong>NSW</strong>Police, Roads and Traffic Authority, and stateparliamentary member representatives. Itssole purpose is to provide technical adviceand recommendations to <strong>Council</strong> on decisionsinvolving traffic facilities within the local roadnetwork. The committee meets on a monthlybasis and last year investigated over 400 localissues. These included community requestsrelating to road safety, traffic facility designs,development applications, and road closurepermits for road works and special events.Safety Around Schools ProgramSurveys previously undertaken across 96primary and high schools were reviewedto update existing priority listings for trafficfacilities relating to road safety around schoolsin the <strong>Wollongong</strong> area. <strong>Council</strong> adopted over60 recommendations affecting more than 30schools, with in excess of $100,000 beingspent on the implementation of traffic facilitiesas part of this initiative. Work on this initiativewill continue into the new financial year.Pedestrian Safety Action PlanAfter a review of pedestrian accidents acrossthe state in 2001, the <strong>NSW</strong> Road SafetyTask Force recommended the accelerationand development of a pedestrian strategyfor <strong>Wollongong</strong> based on casualty rates.In partnership with the RTA, <strong>Council</strong> hascommitted $400,000 to the improvementof pedestrian safety in the area over atwo-year period. The strategy will incorporateengineering and education solutions,determined from qualitative and quantitativeresearch and observations.Drink Safe Walk SafePedestrian Education ProjectWe were proud to win the 2004 Excellencein Road Safety Award in <strong>NSW</strong> for our DrinkSafe Walk Safe Pedestrian Education Project.The project received state wide recognitionfor its impact in highlighting dangers relatingto alcohol-affected pedestrians within the<strong>Wollongong</strong> region. This highly successfulcampaign was run in association with theViva la Gong Festival, as well as the two locallyhosted Rugby World Cup games. Extensivemedia coverage was received for thisinnovative project and was very well receivedby the local community.Checking Speed Around SchoolsThe speed check strategy was aimed atincreasing driver speed awareness aroundschool zones. Participating schools wereselected from previous data relating to speedissues. The Speed Check Unit (speed radarand display) was located outside participatingschools for one week during school zonetimes. The recorded speeds were thenreferred to the police for enforcement.Thirteen schools participated in theprogram this year.Development AssessmentAssessing Development ApplicationsThe city continues to enjoy sustained growthand development. As a consequence, <strong>Council</strong>has reviewed its development assessmentfunctions to ensure the timely determinationof development applications. The processincorporated extensive communityconsultation, resulting in the refinement ofpre-lodgement and notification procedures. In<strong>2003</strong>-04, we determined 2,810 developmentapplications, representing a combined value of$826.66 million. The division also determined5,734 planning certificate applications,along with 55 strata certificate applicationssubmitted by private certifiers. The mediandevelopment assessment processing timesdropped to 41 days.Review of Contribution Plan No 4The review of Contribution Plan No. 4(Studies and Administration of Section 94funds) is now complete. The plan enablesdevelopers to be levied for contributionstowards planning and related studies, as wellas for the administration of Section 94 funds.Review ofLocal Environmental Plan 1990Our principal planning instrument, theLocal Environmental Plan 1990, is underassessment following the completion of aninterim review. A series of administrative andpolicy initiatives is proposed to update theplan’s effectiveness and currency, and toimprove readability and remove anomalies.The significant increase in thevalue of development applicationslodged with <strong>Council</strong> highlightsinvestor confidence in the city.A high volume of developmentapplications were received thisyear, indicating a high level ofinvestor confidence.
28city planning and development performance against objectivesResponding to Stakeholder NeedsDuring the reporting period, a customer surveywas conducted to assess our performancein undertaking development-related matters.The participants represented keystakeholders, including property owners,applicants, and adjoining property ownersof development-related works. The resultsfound that 70% of respondents rated ourinformation on development matters, rangingfrom good to excellent. Furthermore, 80% ofthose surveyed rated our customer service asgood or better. Areas of improvement werealso highlighted, such as a reduction in thelevel of neighbour notifications for applicationsand further refinements to the developmentapplication assessment process. As such,a report was tabled at our Environment andPlanning Committee meeting in October <strong>2003</strong>concerning new notification and communityconsultation policies. The committee resolved toadopt the new notification policy and tore-exhibit the community consultation policy,prior to further consideration.Housing Strategy ReviewWe are reviewing the housing strategy toaccount for the anticipated population growthin <strong>Wollongong</strong> by facilitating the provision ofa suitable volume and mix of housing. Thestrategy will provide a range of affordablehousing choices for people living in the city,both now and into the future.Commercial Centres StrategyA study is underway for all regionalcommercial centres within <strong>Wollongong</strong> toaddress how these centres can best servetheir local communities. The findings willbe incorporated into our key planningpolicies, particularly the LocalEnvironmental Plan 1990.Below: Cathie Mehl assisting with front counterenquiries in our Development Assessment office.SubdivisionDetermining Subdivision ApplicationsSubdivision involves the assessment andoverseeing of all construction within thecity. Recent times have seen an increase inresponsibilities for this function, principallyrelating to the protection of environmental,natural and Aboriginal heritage. This year,all subdivision applications were approvedwithin five days of lodgement, followingthe submission of relevant supportingdocumentation from applicants. Forty-eightconstruction certificates were issued, with 289subdivisions inspected as part of our role ofprincipal certifying authority. In all, 501 lotswere created compared to 400 in 2002-03.Building ComplianceImproved Building ComplianceThe role of building compliance impacts on thewhole community. With the implementationof critical stage inspections by the <strong>NSW</strong><strong>Government</strong>, we continue to review theprocess of inspection to ensure high standardsof certification within the city. In total, 2,030building inspections were performed in <strong>2003</strong>-04. These resulted in 554 requiring furtheraction. Of the 103 Notices of Intent issued,only 27 led to legal compliance action. During<strong>2003</strong>-04, a total of 359 complaints werereceived, 44 of these related to the action ofprivate certifiers. In all, 105 complaints wereactioned and resolved.Fire Safety LevelsA private consultant was engaged to reviewour fire safety awareness program and toidentify key areas for improvement for the nextthree years. Additionally, our building surveyorscontinued to carry out BCA and fire safetyinspections whenever required.Outlook for 2004-05Major projects for the coming yearwill be to conduct reviews of theDevelopment Assessment function,our customer service documentation,bushfire protection guidelines and thenotification and consultation policies.In the area of building compliance, wewill seek to improve the satisfactionlevels of all key stakeholders inthe construction process. A keyaspect of this focus will be to assessour level of competitiveness withprivate certifiers. We will also workto improve the level of fire safety inbuildings.Implementing the Illawarra<strong>Council</strong>s Subdivision CodeThe Subdivision Section has implementedthe main requirements of the Illawarra <strong>Council</strong>sSubdivision Code. The code was formallyadopted in February 2004 and reflects bestpractice for subdivision road and drainageconstructive works. It also provides a uniformpolicy for the design and construction of allsubdivisions within the <strong>Wollongong</strong>, Kiama andShellharbour local government areas.A concerted effort was made toreduce the time taken to processdevelopment applications.Continued emphasis will be placedon making further improvements.The last three years has seen aslight reduction in the number ofplanning certificates received.In the future, the creation of any newsubdivisions will need to comply withEcologically Sustainable Developmentprinciples, as well as preservingnatural and Aboriginal heritage.Two key areas of interest will bethe incorporation of solar accessguidelines, along with water sensitivedesign principles into buildingson new subdivisions. We are alsoaiming to maintain the time taken todetermine subdivision applications tofive days or less.A substantially greater numberof lots were created this year,compared to last year. This mustbe seen in the context that there isvery little land remaining within thecity for subdivision.This year’s result has seen areversal of the downward trendin the number of constructioncertificates received.
infrastructure performance against objectives29infrastructureProgram Goal Construct and maintain functional roads, drains,public buildings and associated engineering.Infrastructure ExpenditureFunctions:Buildings $11.156mOperation Support $7.356mEmergency Services $2.628mDesign $4.598mCatchment Management $2.411mAsset Management $0.712mConstruction and Maintenance $20.888mEngineering Support $0.739mTechnical Support $0.318mInfrastructure IncomeFunctions:Buildings $1.323mOperation Support $4.095mEmergency Services $0.507mDesign $0.454mCatchment Management $1.798mAsset Management NilConstruction and Maintenance $11.159mEngineering Support $0.301mTechnical Support $0.002mBuildingsMajor Scheduled Building ProjectsMajor scheduled building projects completedduring <strong>2003</strong>-04 included repainting andrepairs to eaves and fascias at BerkeleyCommunity and Senior Citizens Centre;roof repairs and gutter guard to Bulli SeniorCitizens Centre; re-roofing of CoalcliffCommunity Hall; general maintenance toCorrimal Tourist Park; repainting of FigtreeCommunity Centre; external repainting andfloor polishing to Koonawarra CommunityCentre; maintenance and repairs to PortKembla pool; drainage repairs to <strong>Wollongong</strong><strong>City</strong> Art Gallery; tiling, bagging and painting toKembla Grange Lawn Cemetery; repainting ofthe Discovery Centre cottage in the botanicgarden; painting and ceiling installations toHelensburgh pool; internal repainting and newcarpet to Lakeside Leisure Centre; and StageOne of the conservation management plan forGleniffer Brae Manor House.Infrastructure Expenditure vs.Total <strong>Council</strong> ExpenditureInfrastructure Income vs.Total <strong>Council</strong> IncomeTotal Infrastructureexpenditure was$49.749mor 29.10% of total<strong>Council</strong> expenditureMinor Scheduled Building ProjectsIn accordance with our statutory obligations,a total of 6,046 minor building maintenanceprojects were completed during <strong>2003</strong>-04.In addition, 7,583 electrical appliances weretested and tagged.Servicing of the following essential servicesequipment was also carried out:SERVICETotal Infrastructureincome was$19.336mor 11.19% of total<strong>Council</strong> incomeNO. OF LOCATIONSAir conditioning 5Exit and emergency lighting 53Fire protection equipment 108Gas appliances 17Roof gutters RPZ(Reduced Pressure Zone valves) 17Sydney Water backflow prevention 214Temperature control valves 78Asset Maintenance SystemsA building database allows the recording ofplanned and major maintenance requirementsfor <strong>Council</strong> buildings. Following consultationwith each division, their maintenancerecommendations are incorporated into thescheduled maintenance plan. EngineeringServices is currently assessing the variousasset maintenance systems available inthe marketplace to assist in detailing andcoordinating annual programs in future years.Operational SupportUtilisation of <strong>Council</strong> PlantOur fleet of vehicles, trucks, plant andequipment is continuously monitored forsuitability in terms of type, capacity,numbers and contemporary technology.The operational demands of projects andservices are met by balancing there-allocation, hire, lease, replacement andpurchase of fleet items against plant lifecycle efficiency. Fleet utilisation rates aremeasured by individual plant items or planttypes, compared to predetermined industryperformance measures. This informationidentifies operational trends andunder-utilised plant.A greater portion of buildingwork this year involvedunscheduled maintenanceprojects.This graph provides a comparisonof the dollar values of bothunscheduled and scheduledmaintenance projects.
30infrastructure performance against objectivesRight: John McMaster working on a councilfleet car at the central workshop.Furthermore, it provides detailedbenchmarking data to assist operationalefficiency and identify purchase, disposal andreplacement options. Utilisation rates for allmajor plant items are distributed monthly tocustomers in order to identify areas of underusagefor corrective action. Around 75% of alloperational demand for plant and equipmentis met from our own fleet with the remainderacquired from the private sector. We continueto pursue avenues for the external hire of ourown plant, resulting in additional income andimproved plant utilisation.Plant ReplacementConsultative processes are employed toestablish plant replacement programs.The claim is then confirmed through theestablishment of internal service levelstandards that are unified on usage,price, volume and level of service. A plantreplacement program extending to the year2012 is being implemented to meet industrystandards for equipment life cycles.<strong>Wollongong</strong> <strong>City</strong> Truck and PlantThrough the operations of <strong>Wollongong</strong><strong>City</strong> Truck and Plant, a component of theoperations of the plant, workshops andsupply business unit is able to compete in theexternal marketplace. The primary functionareas of the business: fleet plant hire, fleetmaintenance, parts and materials supply haveenjoyed business opportunities that continueto realise increased efficiency and productivitygains. These include the introduction ofindustry standard work practices, acceleratedskills development of our employees andmarketplace acceptance.Management of Stock ItemsThe efficient supply of inventory items is bestmeasured by the level of issues against thelevel of stock. In <strong>2003</strong>-04, stock turnoverrates fell by 7%, adding to the previousyear’s downturn of 11%. While this is not adesirable outcome, the reduction is still withinacceptable levels. However, in the comingyear, careful assessments will be made ofstock items that are under-utilised, obsoleteor surplus to requirements. In relation to thenumber of stock items, we continued to placeemphasis on reducing our inventory, andthis was largely achieved. The small increaserecorded in this year’s figures is mainly dueto the need to supply specialised items forone-off projects and, as such, are not expectedto have an ongoing impact on stock numbers.A reduced level of inventory is achievedthrough the disposal of obsolete stock anda review of stock items required to meetcustomer needs. The ongoing assessment ofmaterial supply services will result in furtherreductions of inventory items and improvedcustomer satisfaction levels, as alternateservice delivery systems are implemented.Enhanced Materials DeliveryMaterials supply operations were enhancedduring the year with the introduction of newmaterials, technologies and efficiencies toprovide prompt and timely supply of materials.Apart from the supply of additionalitems for special projects, theoverall trend reflects reducedstock holdings related to improvedmaterials management processes.The percentage of stock turnoverthis year fell for the secondyear running. While this is not adesirable result, the variation fromthe previous year was only 7%.Outlook for 2004-05Major scheduled projects tobe undertaken in the comingyear include the refurbishmentof our administration building,general maintenance work for the<strong>Wollongong</strong> Town Hall, re-roofingof Coledale Senior Citizens Centreand Fairy Meadow Beach amenitiesblock, and painting to HarryGraham Park amenities and to EastDapto Neighbourhood Centre,West Dapto Neighbourhood Centre,Berkeley Community Centreand Cringila Community Centre.
infrastructure performance against objectives31Emergency Services<strong>Annual</strong> Fuel Management ProgramIn <strong>2003</strong>-04, fifteen fuel management burnswere conducted within the district, reducingsome 146.5 hectares of fuel loads andinvolving some 2,595 personnel hours.This represents a significant increase over theprevious year, and greatly reduced fuel loadsin time for the approaching bushfire season.In addition, the Rural Fire Service, inconjunction with the Department of Landand Water Conservation, organised for theconstruction of asset protection zones inthe Helensburgh and Otford areas.The only works not yet completed areon lands managed by the Department ofInfrastructure, Planning and Natural Resources(DIPNR). We are currently waiting on consentto proceed from the DIPNR.DesignManaging Design ProcessesThe number of design projects undertakenin <strong>2003</strong>-04 reflected an overall increase fromprevious years, in line with our infrastructuredevelopment and maintenance program.The diversity of projects, combined withexpanding legislative controls and standards,has placed added pressure on the divisionto meet escalating work demands.Quality CertificationThe key process covering all aspect ofdesign is monitored through internaland external audits to ensure all productsmeet required objectives and standards.The Design Division maintained its qualitycertification to IS0 9001:2000, with all areasaudited by April 2004.Thirroul CBD Streetscape UpgradeConstruction drawings for Stage One of thestreetscape upgrade to Thirroul city centre weresuspended, subject to an investigation into thepossibility of relocating powerlines undergroundin the vicinity of the centre. This investigationwas conducted during <strong>2003</strong>-04 and we areawaiting further direction from Integral Energy.Helensburgh Skate FacilityAn initial master plan was formulated for theentire Rex Jackson Park site. This will assist theforthcoming community consultation phase byhighlighting all necessary upgrade works andidentifying the final positioning of the skate facility.Below: One of the region’s dedicated bushfireservice volunteers shows fire fighting equipmentat the Community Education Trailer.Community Fireguard AwarenessRural Fire Service staff and volunteerbrigade members conducted 44Community Fireguard Awarenessprograms for numerous local schoolsand community groups. The sessionscovered a range of subjects from basicpersonal protection strategies to fireprevention techniques.Blue Hydrant Marker ProgramVolunteer brigade members expandedthe Blue Hydrant Marker program inthe Mt Kembla, Farmborough Heights,Bulli, Tarrawanna and Woonona areas.Members installed blue ‘cats eyes’ onroadways, within urban interface areasthroughout the city; to assist crewsidentify hydrants during times of fireand other emergencies.A significantly larger hectaragewas cleared this year, greatlyreducing fuel loads prior tocommencement of the bushfireseason. An increase in volunteer numbers,along with improved weatherconditions have boosted ourhazard reduction efforts.Outlook for 2004-05A key objective will be to evaluatethe service level agreement withthe <strong>NSW</strong> Rural Fire Service.We will also investigate thefeasibility of a new Illawarraheadquarters for the <strong>NSW</strong> RuralFire Service, in conjunction withShellharbour and Kiama councils.Our community educationprogram on the preventionof bushfires and the protectionof lives and property will continueto be an important focus.
32infrastructure performance against objectivesOutlook for 2004-05The Design function managesthe design process for ourinfrastructure works and providesstrategies and designs to enhancethe city’s infrastructure, urban,recreational and natural areas.Key projects will include MacCabePark Precinct Master Plan,<strong>Wollongong</strong> Foreshore Project,Whytes Gully Waste Transfer Stationand Thirroul Community Centreand Library. We will also developstrategies and policies to improvelandscape standards on privateland, as part of the developmentcontrol process.Above: A boulevard of trees now lineWentworth St, Port Kembla, as the firststage of a major redevelopment project.Bulli Beach Patrol TowerPlans and specifications were completedfor the construction of a patrol tower abovethe surf club.Reed Park ClubhouseAlthough concept designs and estimates wereprepared for a new clubhouse at Reed Park,the project was unsuccessful in attractingfunding through the sports planning process.Link Road for Fairwaterand Sierra Drive, DaptoDesign work was completed on an importantlink road in Horsley, West Dapto, to provideaccess and parking associated with the newDapto Primary School.Cordeaux RoadCommunity Link ProjectThis community link project will improve safetyand amenity for both pedestrians and cyclists,while providing a connecting route from MtKembla village to educational facilities, as wellas to east <strong>Wollongong</strong>.North Beach PrecinctLandscape Master PlanMaster plan design information wasdistributed to the potential developer ofthe Bathers Pavilion at North Beach, inaccordance with the plan of management.Upgrade to Wentworth Street,Port KemblaThis staged project will transform PortKembla’s main street. Stage One incorporatedlandscaping works, with street trees plantedthroughout the commercial area. In addition,footways were widened on the Fitzgerald Stintersection, and three pedestrian blisterswere added to improve pedestrian safety.Initial discussions have commenced toestablish the scope of works for Stage Twoscheduled to commence by mid 2005.Public Domain Master Planfor the <strong>Wollongong</strong> <strong>City</strong> CentreA draft public domain master plan wasproduced, in conjunction with the <strong>City</strong> CentreRevitalisation Strategy, and publicly exhibitedfrom November <strong>2003</strong> to January 2004, alongwith DCP 56 and related documents. Followingthe exhibition period, DCP 56 went through amajor review and is now being finalised. Thepublic domain master plan will be completedonce the DCP is adopted by <strong>Council</strong>.Beaton Park Pool RefurbishmentDesign documentation was prepared forthe refurbishment of the steel arch frame,replacement of the membrane roof andthe resolution of acoustic issues for BeatonPark pool. All works were completed bylate June 2004.Windang Surf ClubPlans and specifications for refurbishmentand extensions to the Windang Surf Clubwere completed. Contractors are expectedto commence construction in July 2004.<strong>City</strong> Beach Landscape UpgradeStage Two construction drawings werecompleted, in accordance with new budgetand grant funding information. Constructionis expected to commence in August 2004.Redevelopment of Dapto PoolInitial master planning for the last remainingstages of the Dapto Pool redevelopment hascommenced. Updated cost estimates wereprepared and are currently being assessed.Hollymount Park Facilities UpgradeConcept designs and costings wereproduced for an extension to existing facilitiesat Hollymount Park. This enabled the projectto be submitted for funding within the sportsplanning process. The submission wassuccessful and is now incorporated into nextyear’s capital works program.Figtree Park FacilitiesConcept designs and estimates wereprepared for the relocation of the <strong>Wollongong</strong>Olympic Soccer Club from Brandon Parkto Figtree Park, including a new amenitiesbuilding, soccer field and associated facilities.The development application was lodged inMarch 2004 and is awaiting determination.Waste Transfer Facility at Whytes GullyMaster planning for the provision of a wastetransfer facility was completed, with detaileddesign work to commence in July 2004.Thirroul Community Centreand Library Project<strong>Council</strong> successfully acquired one of theproperties adjoining the proposed site of theThirroul Community Centre and Library. Thedesign consultant team was subsequentlyappointed and concept plans for thisproposal are now in the development stage.Refurbishment of theAdministration Building and IPACSeveral design stages for the refurbishmentproject are now finalised, including theupgrade of smoke exhausts to the fire controlroom, and to Levels 9 and 10. Designs werealso finalised for the provision of sliding doorsadjoining the IPAC cafe to encourage greateruse of the outdoor areas. Both projects willbe completed in the new financial year.
infrastructure performance against objectives33Left: Ted Spasich, Assistant ManagerCivil Design, overseeing constructionand maintenance work at theMt Ousley upgrade.Outlook for 2004-05In order to reduce potential floodrisks and damages within the city,and the impact of stormwater onthe community and environment,we will implement a new policyfor the management of floodprone land.We will also develop floodplainmanagement plans for AllansCreek, Fairy Creek/Cabbage TreeCreek, Mullet Creek, and Whartons/Collins/Farrahars/Bellambi Gully/Bellambi Lake catchments.Mt Ousley Road ImprovementsThe improvements to Mt Ousley Road,Mt Ousley, have taken three years to develop,from concept stage to construction. Theproject is part of a major road improvementprogram that will transform <strong>Wollongong</strong>’smain entrance from a low-level freewayoff-ramp to one that befits a majorcosmopolitan city. Work has alreadycommenced on the freeway approachesto Mt Ousley Road, with the next sectionof work to involve a road reconstructionto improve safety for both vehicular trafficand pedestrians. The project incorporatessignificant landscaping works that create asafe, elegant boulevard entrance to the city.Thirroul Pool Pump Houseand Shade FacilitiesSpecialist consultants were engaged todetermine the durability and life expectancyof the existing pump house. As the reportshowed that the existing structure will requirereplacement in the near future, the designstage is scheduled to commence in August2004. Concept designs were also producedfor shade facilities at the pool.Catchment ManagementIdentify and Categorise Flood AreasA key outcome of the floodplain managementplan is the categorisation of properties intohigh, medium and low risk zones. These zonesdetermine the criteria for suitable developmentin order to minimise future flood risks. Thecategorisation of properties for Hewitts andTowradgi Creek catchments were completed,with those properties identified as floodaffected recorded on the Land InformationSystem (LIS). The updating of the propertieswithin these two catchments represents 25%of the total catchments in the city.Waterways and Riparian ZonePolicies and ProgramsThe Department of Infrastructure, Planningand Natural Resources is preparing a ripariancorridor report. The report was under reviewduring the past year and will form the basisfor further policy development in relation toriparian zones.Flood Education StrategyIn an attempt to develop a flood educationstrategy, a community survey was conductedto assess the current level of flood awareness.The survey will provide an insight intodifficulties facing the community in trying tocope with floods. The project will continueinto the new financial year.Towradgi Creek FloodplainManagement PlanThe floodplain risk management study andplan was adopted in <strong>2003</strong>-04. The plandescribes flood behaviour, planning controlsand recommended mitigation measures tobe implemented in the catchment. We havemade application to both the Federal and<strong>NSW</strong> governments for financial assistancein the implementation of this plan.Cabbage Tree/Fairy CreekManagement PlanAn analysis of this catchment determined thequantity and nature of flooding. A detailedsurvey and the review of historical flood levelinformation were also finalised. The findingswere subsequently translated into mapsshowing flood-affected areas and placed onpublic exhibition. The feedback received willbe used to refine these maps. The next phasewill involve an investigation into potential floodmitigation measures.Minnegang Creek Management PlanThe floodplain risk management plan isnow complete. It describes flood behaviourand planning controls, as well as outliningrecommended mitigation measures to beimplemented in the catchment.Allans/Byarong/American/Brandyand Water/Branch CreeksManagement PlanThe complex nature of flooding in thiscatchment, particularly adjacent to theF6 Freeway, has caused some delays.Investigations into mitigation measures toreduce flood impacts will continue into thenew financial year.Mullet/Brooks CreeksManagement PlanThe analysis phase to determine the quantityand nature of flooding is now finalised. Thiswas achieved by undertaking a detailedsurvey within the catchment, along with areview of historical flood level information.The results were then translated into mapsshowing the areas that are flood affected andwill shortly be placed on public exhibition.
infrastructure performance against objectives35Road Rejuvenation TreatmentThe pavement management process hasidentified the application of a rejuvenationtreatment on roads. The treatment replenishesthe chemical constituents of the asphalt roadsurface and provides a protective layer for thelower sections of the road pavement. This,in turn, prevents future expensive works,such as asphalt resurfacing and entire roadreconstruction.Review of Development Applicationswith Geotechnical ImplicationsA total of 284 geotechnical assessmentswere undertaken this year, a significantdecrease from previous years. The majorityof assessments were referrals fromdevelopment applications, 205 in all, again adecrease from the 326 applications receivedlast year.The performance target of replying to clientswithin 14 days was not met, with 41% ofprojects requiring an average of 27.7 daysto process. This was markedly differentfrom 2002-03 when 81% of applicationstook only 8.5 days to process. The majorcontributing factor that affected the resultswas staff shortages. The backlog in replieswas subsequently attended to, but duringthe catch-up period, reply times were longerthan normal.Timely Geotechnical <strong>Report</strong>sThe number of geotechnical reports hasremained relatively static over the lastthree years, with 41 reports prepared andassessed in <strong>2003</strong>-04. As was the case withgeotechnical assessments, the performancetarget was not met as only 47% of reportswere completed within a 14 day turnaround.While the recruitment for a replacementgeotechnical officer commenced in February2004, the accumulation of work and ahierarchy of other priorities, precluded theopportunity to finalise this work.Deflection TestingEven though deflection testing is a frequentform of testing for road pavements, this hasnot been performed since August <strong>2003</strong>,due to drought conditions that make the soilabnormally dry. As a result, deflection testingwas suspended to avoid misleading results.Constructionand MaintenanceMinimising <strong>Council</strong>’s RisksData collection and analysis is performed onthe number of incidents and claims madeagainst <strong>Council</strong>, directly relating to civilinfrastructure assets. In using this information,we respond to areas with the greatest need tominimise public liability costs. In recent years,footpaths were identified as receiving the mostnumber of public liability claims. As such,resources were increased to help improve thecondition of our footpath network.Below: Todd Huuskes, Works Division,checking road movement conditions.Asset Condition Assessments ofRoad Pavement InfrastructureIt is beneficial to have structural data foreach road segment that is not older than thepavement design life of 20 years. To acquirethis data, testing would need to be carriedout on 250 segments per year. Only 35 roadpavements were tested in <strong>2003</strong>-04, due toresourcing issues.The number of geotechnicalassessments fell by almost halffrom the 02/03 result and was dueto staff resourcing problems.The performance target wasnot met with only 47% ofprojects completed within thepredetermined timeframe.The decline in the number ofgeotechnical referrals can beattributed to staff resourcingproblems.An improvement was recorded inmeeting performance indicatorsfor the production of geotechnicalreports with 73% completed withina 21 day timeframe during theyear in review.The number of geotechnicalreports that were prepared andreviewed has remained stable overthe last four years. This is expectedto continue.The percentage of geotechnicalreviews completed within thetargeted timeframe dropped by34% this year, again a result ofstaff resourcing.
36infrastructure performance against objectivesImproving Functionalityof Infrastructure Assets<strong>Council</strong> manages in excess of$1 billion worth of infrastructure assetsand continues to improve services tothe community by upgrading existingassets and providing new facilities.Assets targeted this year included theconstruction of new footpaths and kerbramps to improve footpath accessibility,the extension of the cycleway network toencourage bicycle and pedestrian traffic,and the resurfacing of local and arterial roads.Further improvements were made tofootpaths in the city centre, along with newpaving works at Burelli and Atchison streets,<strong>Wollongong</strong>. Roadside drainage was alsoupgraded through the construction of a newkerb and gutter at Cawley Street, Bellambi;Robsons Road, Keiraville; and MountBrown Road, Dapto.Review Site Management Plansand Safety SystemsThe Works Division carried out development,implementation and reviews of sitemanagement plans and safe work methodsfor construction and maintenance projects.These plans currently cover OH&S, butwill be expanded to include environmentalmanagement. A full review of all safetysystems within our Works Division is inprogress. A system of work site audits wasalso developed that allows peer assessmentof work site safety, to be implemented in early2004-05.Emergency Infrastructure PlanAn emergency infrastructure plan wasimplemented to respond to city emergencies.The plan, and the physical resourcesrequired to implement it, will be updatedon an annual basis.Traffic Safety Control MeasuresIn <strong>2003</strong>-04, 232 of our employees receivedtraining in traffic safety control measures.This proved very successful and will becontinued in the new financial year.Safety Around Schools ProgramThe construction of the new footpathconnecting Bellambi Primary School toMurray Road, allows children and parentsa safer journey both to and from school.Associated kerb and gutter improvementsalso enhanced road drainage. The wideningof Cawley Street, Bellambi has addedsecure access for road users, pedestrians,bus commuters and parents dropping offand picking up school children. Thisinitiative received 50% funding from theRoads and Traffic Authority (RTA). As itwas a school crossing, work includedlarge islands, blisters and poles to holdthe school crossing flags. The crossingwas also moved several metres toallow motorists additional sight distance.This project was undertaken during schoolholidays, so there was no disruption to trafficor children attending school.Above: Rocky Fernie, Works Division,upgrading Mt Ousley Road.Footpath Constructionat Carrington Street, WoononaMany requests have been received for afootpath to be built on Carrington Street,Woonona. This is now constructed, linkingCarrington Street with Park Road, andproviding access from Woonona East to thecommercial centre and railway station.Northfields Avenue Median StripFunding to the value of $200,000 was securedfrom the RTA through its Pedestrian AccessMobility Program. This was used to constructa median strip and improvements to thefootpath on Northfields Avenue, Gwynnevilleadjacent to the university. The area wasidentified as dangerous for pedestrians dueto the high volume of traffic on this section ofroad. Work was completed during theuniversity’s Christmas break to minimiseany inconvenience to students, motoristsand members of the public.<strong>City</strong> Beach - Stage OneA car park and landscaping project wasrecently completed along <strong>Wollongong</strong>’s mainbeach. The construction of the car parkcoincided with the construction of the surfclub, thereby serving as an added amenity forboth residents and visitors to this area.Works Carried Out On PrivateProperty Under Section 67No resolutions were made in <strong>2003</strong>-04 underSection 67 of the Local <strong>Government</strong> Act inrelation to works being undertaken on privateland requiring <strong>Council</strong> funds.This refers to the dollar value ofall insurance claims involvingthe city’s infrastructure assetssettled against <strong>Council</strong>. This smalldecrease is a positive step asover the past four years there hasbeen an increase in the value ofinsurance claims settled against<strong>Council</strong>.The total number of incidentsreported refers to the numberof notifications in relation toinsurance claims. These areclaims involving accidents andinjuries that are attributed to ourinfrastructure assets. While thedifference from last year wasminimal, it is a pleasing result.
infrastructure performance against objectives 37Condition of Public Works Section 428 <strong>Report</strong><strong>Annual</strong> Maintenance Buildings<strong>Council</strong> owns or controls 615 building assets with an estimated reinstatement value of approximately $280 million. Based on commercial sectorcomparisons, the estimated cost for annual maintenance of <strong>Council</strong>’s buildings is 2-3% of the building value or $6 million. Maintenance fundingfor 2004-05 has been increased by $500,000 per annum to reflect the need for improvements to the condition of our building assets.CONDITION OF PUBLIC WORKS JUNE 2004 EVALUATIONAsset Type Length km* Area sq m* Current Estimated Estimated <strong>2003</strong>-04Replacement Restoration Required <strong>Annual</strong> ExpenditureCost* Cost* Maintenance* Maintenance**RoadsSurfaced 1,041.5 8,677,924 $699,375,385 $148,950,626 $14,589,344 $4,952,163Unsurfaced 12.6 57,633 $2,017,155 $659,522 $115,266 $75,391Kerb & Gutter 1,562.5 $234,073,256 $40,509,192 $4,681,639 $168,381$935,465,796 $190,119,340 $19,386,249 $5,195,935Car ParksSurfaced 322,923 $24,347,825 $5,445,250 $486,612 $203,200Unsurfaced 112,615 $3,941,525 $1,064,984 $225,230 Incl above$28,289,350 $6,510,234 $711,842 $203,200Footpath 493,355 $52,407,450 $35,330,450 $1,411,181 $1,131,709Cycleways 69.9 176,312 $12,612,459 $1,421,288 $225,000 $90,533Bridges 11,120 $22,742,243 $1,106,300 $276,574 $27,493Footbridges 2,925 $4,079,993 $231,845 $62,864 $8,678$26,822,236 $1,338,145 $339,438 $36,171Major Culverts& Causeways $10,041,110 $602,467 $125,513 $40,775Drainage $222,869,227 $4,435,079 $1,757,034 $780,154Guard Rails 25.85 $5,170,200 $2,760,970 $219,734 $21,087Roadside Furniture(bus shelters, signs) $2,392,156 $624,654 $199,346 $209,734Notes* <strong>Wollongong</strong> <strong>City</strong> <strong>Council</strong> has experienced a delay in upgrading its asset information systems. As a result, the information for the<strong>2003</strong>-04 financial year could not be updated and 2002-03 has been used. The section 428 report for the new financial year willbe updated to include the changes.** The maintenance figures for the <strong>2003</strong>-04 financial year were available and are included in this report.Our effort to reduce the overallamount of unsealed roads withinthe city continued throughoutthe year. .This number of pavementsegments tested in <strong>2003</strong>-04 hasfallen from previous years due tothe prevailing drought conditionsthat make it unsuitable for testing.A substantial increase in resourcesis required for <strong>Council</strong> to reducethe difference between actual andrequired maintenance of the city’sfootpaths.<strong>Council</strong> achieved a significantincrease in the number ofkilometres of footpath constructedthis year. Previous to this year’sspike, footpath construction hadremained relatively stable.Although fewer kilometres ofcycleway were constructed thisyear over the last two years,<strong>Wollongong</strong>’s cycleway networkis extensive and, in recent times,many areas within the city havebeen linked to the network.This year saw a drop in the numberof pram ramps constructed overprevious years. This was due to areduction in community demandfor additional facilities,
38 environment and health performance against objectivesenvironment and healthProgram Goal To have an environment that is sustainable,diverse and conducive to a high standard of environmental andpublic health.Environment and Health ExpenditureFunctions:Environment $1.430mHealth $0.479mRanger Services $1.635mEnvironment and Health Expenditure vs.Total <strong>Council</strong> ExpenditureTotal Environment andHealth expenditurewas $3.544mor 2.03% of total<strong>Council</strong> expenditureEnvironment and Health IncomeFunctions:Environment $0.136mHealth $0.206mRanger Services $1.186mEnvironment and Health Income vs.Total <strong>Council</strong> IncomeTotal Environment andHealth income was$1.528mor 0.87% of total<strong>Council</strong> incomeEnvironmentEnforcement of Compliancewith Environmental Legislation<strong>Council</strong> exercises its legislative authority toreduce pollution levels and protect the localenvironment. Development applicationsare thoroughly assessed and appropriateconditions imposed to minimise environmentalimpacts. Some of the environmental benefitsachieved through this process includesanitation of contaminated sites, conservationof biodiversity and the reclamation ofdemolition wastes.In <strong>2003</strong>-04, the assessment of 18 applicationsfor the installation of on-site seweragemanagement systems resulted in a rangeof water quality and public health benefitsfor the local community.Extensive liaison was also undertaken withSydney Water on the Illawarra WastewaterStrategy and the priority sewerage programfor the townships of Coalcliff, Stanwell Park,Stanwell Tops and Otford.Industrial AuditsWe carried out 117 industrial audits in<strong>2003</strong>-04, and worked in collaboration withlocal industries to identify environmentalimprovement opportunities, and to developprograms to reduce pollution, minimise wasteand promote efficient use of water and energy.Complaints About the EnvironmentThe local community assists us to protectthe environment by reporting incidentsof environmental harm. This year, 518environmental complaints were receivedand actioned. Our intervention resultedin noise reduction, and improved air andwater quality for many of the city’s residents.All complaints received were actioned within14 days.Illawarra EscarpmentStrategic Management PlanIn response to the findings of a Commissionof Inquiry on the escarpment, <strong>Council</strong> hasworked for the past three years on a strategicmanagement plan for this iconic feature of ourlocal environment.With input from a community referencegroup and numerous state governmentagencies, a draft plan was prepared andexhibited for public comment. A key feature,throughout the exhibition period and beyond,was extensive consultation and informationsharing with key stakeholders, includingprivate landowners.The draft plan identified environmentallysignificant areas of the escarpment andfoothills, looked at current land usageand identified possible zoning changes.It also examined how planning policiescan be consistently applied to public andprivate land use along the escarpment,as well as identifying voluntary landmanagement options.Work continues on the development of theplan with the collation of public commentsand modification of the plan in responseto the feedback. The final plan will besubmitted to both <strong>Council</strong> and theMinister for Planning and Natural Resourcesfor adoption.
environment and health performance against objectives 39Sustainable Action PlanA draft Local Action 21 Plan for Sustainabilitywas prepared to ensure that its principles areclearly understood and implemented acrossall <strong>Council</strong> programs. Input is currently beingsought from each division to improve the plan.Performance will be measured and describedin a sustainability report.Energy Efficiency ProgramsThe Greenhouse Action Plan continues tobe implemented. In <strong>2003</strong>-04, the IllawarraPerforming Arts Centre (IPAC) installed motionsensors on lighting within all toilets, therebyreducing lighting by up to eight hours per dayfor each unit. Solar thermal film was applied tothe western foyer windows to reduce thermalloading on the IPAC from afternoon summersun and to improve OH&S issues by reducingoverheating concerns for ticket box staff.Sydney Water assisted us to review waterconsumption at our facilities through auditsof high-usage areas. The audit of ouradministration building identified significantpotential savings. It is expected that measureswill be implemented in the coming year toachieve these savings.EnvironmentallyFriendly Purchasing PolicyWe are incorporating the principlesof environmentally friendly purchasing withinan overall review of our purchasing policy.Information on sustainable purchasingpractices, and methodologies for assessingenvironmental management and the socialresponsibility credentials of major suppliers ofgoods and services, will be integratedinto this policy.Below: Andrew De Montemas, Environmentand Health Division, looks over one of<strong>Wollongong</strong>’s icons, the escarpment fromMt Keira.Our progress in energy efficiency and thereduction of greenhouse gas emissions wasformally recognised by achieving milestonefive of the Cities for Climate Protection (CCP)program, administered by the International<strong>Council</strong> for Local Environmental Initiatives(ICLEI) and the Australian Greenhouse Office.Further progress and recognition is expectedas we commit to the CCP Plus program forongoing greenhouse reductions.Water CampaignThe Water Campaign, an initiativesupported by ICLEI, targets reductionsin water consumption and improvedwater quality.Environmental Management SystemThe development and implementation ofan environmental management systemfor our Works Division continued in<strong>2003</strong>-04. Draft watercourse maintenancepolicies and guidelines were prepared,as well as a review of stormwatermaintenance practices. The latter resultedin a revision of the site management planto incorporate environmental impactassessments, designated environmentalresponsibilities and appropriate controlmeasures. Environmental impactassessments were also undertakenfor specific projects in sensitive coastaland riparian locations.Outlook for 2004-05Our aim is to develop abest practice approach toenvironmental policy,management and protectionto enhance and sustain ourenvironment. Strategies for thecoming year are to finalisethe Sustainable Action Plan(Community Local Action 21 Plan),in conjunction with the <strong>Wollongong</strong>Futures project and to implementLocal Action 21 Plan (<strong>Council</strong>).
40 environment and health performance against objectivesState of the Environment <strong>Report</strong>The State of the Environment <strong>Report</strong> (SOE)is a report card to the community onthe health of our environment. Detailedinformation is provided on local air and waterquality, land, biodiversity, heritage, noise,waste management, social and sustainabilityissues. The report identifies the threats andpressures on the local environment andthe responses that <strong>Council</strong>, the communityand other agencies have made to addressthese issues. The 2002-03 SOE report wascompleted in November <strong>2003</strong> and released tothe community shortly afterwards. Copies ofthe document were also lodged with relevantgovernment agencies.Joint Promotions With <strong>Council</strong>s<strong>Wollongong</strong>, Shellharbour and Kiama councilsjoined forces to participate in a Drain is Justfor Rain campaign, funded by theEnvironment Protection Authority (EPA).The advertising campaign, which ran overa ten-week period, was screened on 3,500occasions in the region’s cinemas.<strong>Council</strong> also contributed to a regionaltelevision campaign that encouragedresponsible use of solid fuel heaters tominimise air pollution.Assessing Air EmissionsLight industrial businesses in Fairy Meadowand surrounding areas benefited from an EPAfunded project to assess air emissions. Ourstaff audited a range of premises, includingsurfboard manufacturers, joiners and smashrepairers. Each operator was provided witheducational material and follow up advice.World Environment Day<strong>Council</strong> regularly hosts a major educationalevent at the botanic garden for localprimary school students to celebrate WorldEnvironment Day. This year, two such eventswere held. The <strong>2003</strong> celebrations werepostponed until September an the 2004event proceeded as planned in June. Over1,000 students attended both events,participating in a series of hands-onworkshops and demonstrations aboutenvironmental protection, conservation andsustainable living. The workshops werepresented by our staff, state governmentagencies and local high school students.Water WeekDuring Water Week, in October <strong>2003</strong>, our staffpresented workshops in schools regardingwater conservation and the maintenance andprotection of water quality.Rise and Shine CampaignThe 19th annual Rise and Shine environmentalimprovement campaign was held in Spring<strong>2003</strong>. In addition to a large number ofcommunity clean ups, the campaign focusedon public education and the promotion ofenvironmental awareness and enhancement.Students were encouraged to participate intree planting and other improvement projects,and to develop environmental managementplans for their schools. Children were alsoencouraged to communicate environmentalmessages through poetry and visual art.Weekly newspaper articles and an attractivelyillustrated calendar were published to furtherpromote environmental awareness to the widercommunity. The highly popular Street of theWeek program again recognised the efforts ofresidents to improve the environment in whichthey live. Further recognition was given toschools, community groups and businessesthrough the presentation of the annual Riseand Shine awards in December <strong>2003</strong>.Estuary Management ProgramWe have long recognised the need to protectthe ecological, social and cultural values of ourcoastal lagoons.Below: Many residents have taken up the challenge tolive more sustainably.This slight decrease in tonnes wasdue to the high volume of plasticscollected this year, compared tothe previous year when a largeamount of building material wasillegally dumped.The growth in the number ofgroups involved in the campaignis due to our success in targetedenvironmental education toindividuals and community groups.In all, a pleasing result.Sustainability StreetThe Sustainability Street program encouragespositive interaction between neighbours.It also promotes practical initiatives to savewater and electricity and, at the same time,reduce waste and avoid use of disposableitems, such as plastic bags. This year, theprogram brought together the residentsof William Street, Keiraville, and ThirdAvenue, Port Kembla, to learn more aboutsustainability, their own community and itsrelationship to the rest of the planet. Theseresidents participated in a series of workshopsfacilitated by our staff to develop action plansfor their own homes. After completing theprogram, residents in each street hostedan open day that attracted interest fromthroughout the city and demonstrated how wecan all take simple but effective steps to makeour lifestyle more sustainable.To this end, we have embarked on anintegrated Estuary Management Programin urban <strong>Wollongong</strong>. The program focuseson lagoons within Fairy, Towradgi andHewitts creeks. A management committeeis now established, with representationfrom the Aboriginal and local community,councillors, state government agencies, andan independent chairperson with expertisein estuarine ecology. Through a seriesof community workshops, the residentsidentified that they strongly value the naturalfeatures, aesthetics and opportunities forrecreational use of these lagoons. They alsoexpressed concerns about over-developmentand the impact of flooding, pollution andloss of natural habitat. This information wascollated, along with the available historical andscientific data to form the basis for the futuredevelopment of an Estuary Management Plan.
environment and health performance against objectives 41Clean Up Australia DayCommunity response to the annual CleanUp Australia Day was outstanding thisyear. Our innovative approach in tailoringthe event to suit a broad cross-sectionof the community drew large numbers ofparticipants. In addition to the general cleanup on Sunday 7 March, 38 local schoolsconducted clean ups during the precedingweek, with church groups turning out on theSaturday to participate in the event. In total,10,000 school students and 2,500 communitymembers took part in 368 cleanups at 119sites throughout the city. The environmentalbenefit of this event is readily evident: 29tonnes of rubbish and 13 motor vehicles wereremoved from the city. This is a significantdemonstration of the benefits that can beachieved by the community and <strong>Council</strong>working together. Throughout the year, wecoordinated additional clean up work bycommunity service detainees and volunteergroups, especially during the Rise and ShineCampaign.Presentations to Schoolsand Community GroupsIn <strong>2003</strong>-04, a total of 27 presentationswere given to local schools and a further 58presentations made to community groups.This was in addition to the 25 presentationsand workshops conducted on behalf ofthe Draft Illawarra Escarpment StrategicManagement Plan.Solar Street LightingIn conjunction with the Cool Communitiesprogram, a project that involved theMacedonian community in Port Kembla ledto further energy efficiency gains and theinstallation of a solar street light in alocal laneway.HealthEnforcement ofLegislative RequirementsSlightly fewer health complaints were receivedin <strong>2003</strong>-04 than in the previous year. Of the551 complaints received, all were actionedwithin 14 days.Inspection of Food PremisesThere was a significant increase in thenumber of food premises inspected thisyear, mainly due to the Rugby World Cupmatches staged in the <strong>Wollongong</strong> citycentre. Of the 810 inspected, 57 licenceswere cancelled and 39 are awaitingadditional information or action. A further19 food premises are under assessmentand pending approval. Last year’sinspections totalled 385 premises.Cooling Towers Inspection ProgramAll 324 cooling towers within the <strong>Wollongong</strong>region were inspected during the period underreview. All were deemed to be in complianceby the completion of the inspection program.A further 30 licenses were cancelled as aresult of the cooling towers being eitherremoved or replaced.Caravan Parks and ManufacturedHomesTen caravan parks and manufactured homesfacilities were inspected in <strong>2003</strong>-04. All wereissued with licences.Hairdressing Salons and MortuariesAn assessment of commercial hairdressingsalons showed that, of the 119 inspected,22 were cancelled and a further five requiredfurther assessment.Rugby World Cup RequirementsTasks associated with the Rugby WorldCup were not directly related to this year’sbusiness plan but required a significanteffort to coordinate and implement. As aconsequence, some scheduled business planactivities were either brought forward or puton hold. The Rugby World Cup event andthe Viva la Gong Festival were held from17 October to 2 November <strong>2003</strong>.In preparation for these events we wererequested by the <strong>NSW</strong> Department ofHealth to undertake a Special EnvironmentalHealth Monitoring Program. The programcommenced on 1 July <strong>2003</strong> and remainedin force to 2 November <strong>2003</strong>. It requiredthe inspection of all environmental healthfacilities, including food premises. All 168food premises within the <strong>Wollongong</strong> CBDwere inspected, with those that did notcomply at the initial assessment, complyingon subsequent inspections. Our Foodsafeprogram was instrumental in helping foodvendors measure their level of compliance.Other requirements included the inspectionof cooling towers and, in associationwith the Illawarra Area Health Service, aninspection of all skin penetration premises.Both categories fully complied with legislativerequirements. Another major area of interestwas the inspection of public drinking watersupplies (non-Sydney Water) to give adviceto operators and to ensure that the systemsprovided the highest level of hygiene available.Below: Inspector Mike Swaney testing acooling tower within the <strong>Wollongong</strong> CBD.Outlook for 2004-05We will continue to protectenvironmental health through theimplementation of best practiceprinciples and enforcement oflegislative requirements.Emphasis will be placed onenhancing environmental healththrough promotional activities andcommunity education programs.The Illawarra Area Health Service also wroteto the owners of public swimming and spapools reminding them of their responsibilities.Owners were provided with guidelines toassist them in maintaining their pools atthe appropriate levels of safety.Foodsafe ProgramThe agenda for the Foodsafe program is toensure that good hygiene and food-handlingpractises are in place at the relevant foodvenues within the city. Further progress wasmade this year, with an additional three foodpremises being accredited. This brings thetotal number of premises that have adoptedthe program’s principles to 78. As a result,881 food handlers are currently beingtrained to meet the Foodsafe criteria toensure stringent compliance with foodhygiene standards.
42 environment and health performance against objectivesInspections of MortuariesThe city’s ten mortuaries were inspectedduring the year. All were subsequentlyregistered and approved.Liquor AccordSix new premises were accredited underthe Liquor Licensing Accord for promotingresponsible service of alcohol. The accordencourages the operators of licensedpremises to be a good neighbour and improvethe safety and security of patrons, as well asthe neighbourhood around the premises.Ranger ServicesEnforcement to Increase AmenityThe Ranger Services section came intooperation on 28 January <strong>2003</strong> and hassince developed into a cohesive andsuccessful enforcement unit. In addition totraditional ranger activities, they investigateenvironmental pollution and illegaldevelopment. Our team dealt with 1,124complaints in <strong>2003</strong>-04 and investigated andremoved 778 abandoned motor vehicles.The officers also undertook site inspectionsof on-site sewage management systemsand assessed and issued 19 licenses tooperate. Other operations included theremoval of illegally placed election posters andassistance in staging the Rugby World Cup inregards to parking and itinerant vendors. Lawenforcement relating to solid fuel heaters andarticles left on roads were reviewed duringthe year. Due to the current severe droughtconditions, our rangers were also authorisedto police mandatory water restrictions.Tosser SquadTwo Tosser Squad training sessions were runthrough the year, as a result of the high levelof employee motivation in reducing litter withinthe city. Following their training, the employeeswere then able to enforce littering provisionsunder the Protection of the EnvironmentOperations Act, 1997. These employeesissued 92 Penalty Infringement Notices thisyear.Managing Parking in the <strong>City</strong>In July <strong>2003</strong>, an additional five parking officerswere appointed, three of which were full-timetemporary positions. The parking rangerswere trained in all facets of operations,including public and customer relations.This initiative has had a positive impacton the community. Of the 14,317 PenaltyInfringement Notices issued in <strong>2003</strong>-04, wereceived 160 complaints. Due to the volumeof work and the successful implementationof parking enforcement citywide, the threetemporary positions were subsequently givenpermanent employee status.Educating the Communityon Legal ResponsibilitiesRanger Services officers make use ofprepared fact sheets on a variety ofissues. This year, these ranged from illegalburning, domestic noise and on-site wastemanagement systems - to air and waterpollution measures. This year, a new policyand fact sheet was developed regarding solidfuel heaters. Its aim was to ensure that thecommunity understands the destruction ofharmful, excessive smoke emission levels.The section also initiated the first SouthernRegion Companion Animals meeting,involving the Department of Local <strong>Government</strong>and representative councils. The ongoingstrategy is to regularly update members andto resolve issues of common concern, alongwith developing cooperative communityeducation programs.Safety of Domestic Swimming PoolsIn association with the Illawarra Healthy CitiesProject, we are participating in a programto improve the safety of all domestic pools.Currently, only 50% of pools are compliant.A domestic swimming pool enforcementprogram will commence in the coming year.To this end, a swimming pool database wasresearched, completed and placed on our GISsystem.Below: A domestic swimming poolenforcement program will commencein the coming year.Signs on Public FootpathsThe ongoing issue of signs on publicfootpaths was streamlined through thedevelopment of new procedures. These willassist our rangers in removing obstructionsfrom the footpath and the unsightly placingof signs on poles.Monitoring Parking SignsParking signs continue to be monitoredand a system is now in place with ourWorks Division for their ongoingmaintenance and replacement.Media Coverage of Ranger ActivitiesA number of media stories were generatedduring the year. These covered a variety oftopics including animal attacks, the impactof the new parking rangers, street patrolsnear the university, responsibilities of petownership, no parking signs around schools,loading zones and even a story concerninga lost pig at the animal pound.Outlook for 2004-05The Ranger Services section willcommence a review of all streetparking signs within the city,utilising the GIS system.We will continue to enhanceenvironmental amenity byenforcing <strong>Council</strong>’s legislativecontrol to meet communityexpectations. In addition, we willensure that the community isaware of its legal responsibilitiesin this regard.Another initiative will see thedevelopment of a public educationprogram relating to safety issueswith domestic swimming pools.Above: Toni Hampton giving Jess a microchipat the <strong>Wollongong</strong> Dog Pound.
environment and health performance against objectives 43Identifying Illegal DevelopmentA Memorandum of Understanding(MOU) between Ranger Services and ourDevelopment Assessment and ComplianceDivision was completed during the year.The rangers continue to govern illegaldevelopment, in accordance with theMOU. As a result, 160 illegal developmentcomplaints were assessed. A report wasalso prepared on the review of the MOU andis now with the Development Assessmentand Compliance Division for inclusion into abroader assessment and compliance report,prior to endorsement by our ExecutiveManagement Committee.Managing Companion AnimalsSubstantial progress was made in companionanimal management during the period underreview. Our rangers increased enforcement foroffenders, doubling the amount of on-the-spotfines from the previous year. They also dealtwith 1,065 complaints in the last six monthsalone, particularly concerning barking androaming dogs.Impounding of AnimalsDuring the year 1,239 dogs, 255 cats and45 stock were impounded at our animalshelter. This represented a noticeabledecrease in the amount of dogs impoundedcompared to the previous year and indicatesthat both the microchipping program andcommunity education on the responsibilities ofpet ownership are taking effect. Unfortunately,this was not the case for cats. The numberof impounded cats rose significantly from theprevious year. Of the total number of animalsimpounded, 641 dogs and 70 cats weresubsequently claimed and released to theirowners. A new initiative during the year wasto train our animal control rangers in the useof tranquilliser guns and poisons, toincrease animal welfare.Above: Toni Hampton giving Jess amicrochip at the <strong>Wollongong</strong> Dog Pound.Animal ShelterThe RSPCA was given preliminary approval toperform the new animal shelter function fromtheir Unanderra site. This will be assessedwithin the next financial year.Microchipping of DogsThe annual microchipping day took placeon 13 March 2004 and resulted in 110 dogsbeing microchipped. The microchipping ofdogs and cats is painless and efficient and,most importantly, has resulted in fargreater number of pets being reunitedwith their owners.Companion Animals ManagementPlanThe Draft Companion Animals ManagementPlan was completed during the year.The plan focuses on identification andregistration issues, animals in publicplaces, faeces management, wanderingdogs, excessive barking, dangerous andrestricted dogs, cat management, animalsafety and welfare, education and thedissemination of information material.The draft plan will be publicised forcommunity feedback prior to beingpresented to <strong>Council</strong> for endorsement.Feral AnimalsThe management of companion animalshas progressed to a new stage, through astrategic partnership with the Animal WelfareLeague. Our objective is to control the feralcat population in order to protect our wildlife,particularly within escarpment areas.Outlook for 2004-05The ongoing management ofcompanion animals within thecity will see an investigation intoa new facility to replace theexisting pound.Work will proceed on thefinalisation of the CompanionAnimal Management Plan. Theplan will incorporate extensivecommunity consultation and will besubmitted to <strong>Council</strong> for approval.Other initiatives will focus on areview of all animal control signswithin the city and an assessmentof off-leash areas, with newareas identified and operationalby year’s end.Off-Leash AreasOff-leash areas for companion dogs continueto remain operational and are regularlypatrolled. These are located at Bellambi Point,Bellambi; Coniston Beach, Coniston; FigtreePark, Figtree (existing trial off-leash area);Riley Park, Unanderra; and King George VPark, Port Kembla. The areas are equippedwith collection bins and advisory signs.Information brochures are also available thatoutline the location and regulations. Minimalcomplaints were received from the public thisyear concerning these areas, with the initiativeproving to be popular with dog owners withinthe community.
44 commercial development performance against objectivescommercial developmentProgram Goal Effectively manage our property portfolio andensure an appropriate rate of return on <strong>Council</strong>’s commercial assets.Commercial Development ExpenditureFunctions:Property Services $3.533mCommercial Business $4.806mCommercial Development IncomeFunctions:Property Services $4.274mCommercial Business $5.465mProperty ServicesSale of Surplus LandIncome totalling $410,287 (GST exclusive)was realised from the sale of surplusland in <strong>2003</strong>-04. This well exceeds theoriginal budget estimate of $200,000 andthe assessed market value of the land. Inaddition, <strong>Council</strong> has accepted bids for thesale of five industrial lots. Income from thesale of those lots, amounting to $2.38 million,will be received in the new financial year.Plan of Managementfor Community LandThere are 1,738 community land sitesthroughout the city - 1,691 of which arecovered by a generic plan of management.The remaining 47 properties requiresite-specific plans of management. Duringthe year, <strong>Council</strong> formally adopted the planof management for Coledale Beach Reserve.Plans of management are currently beingprepared for Judbooley Parade Reserveand Stanwell Park Beach Reserve.Commercial Development Expenditure vs.Total <strong>Council</strong> ExpenditureTotal CommercialDevelopmentexpenditure was$8.339mor 4.78% of total<strong>Council</strong> expenditureCommercial Development Income vs.Total <strong>Council</strong> IncomeTotal CommercialDevelopment incomewas $9.739mor 5.55% of total<strong>Council</strong> incomeMaintenance of Commercialand Residential PropertiesExpenditure on the maintenance andmanagement of our commercial andresidential properties shows a cumulativefigure of 15.29% of total gross revenue atthe end of the last quarter. This is 0.29%greater than the predetermined performanceindicator and 2.53% higher than the figurereported previously. The result is due tothe incorporation of water rates into thecalculation of outgoings for residentialproperties.Contracted Real Estate AgencyLocal real estate firm Martin Morris andJones Pty Ltd continued to act as our agentin the management of properties within thecommercial and residential property portfolio.Suitable indicators were set to measurethe company’s performance both annuallyand quarterly. Progress is regularly reportedthrough monthly and quarterly corporatereviews. Martin Morris and Jones has eithermet or exceeded all performance indicatorson almost every occasion during <strong>2003</strong>-04.Property Acquisitions and RemovalsIn late <strong>2003</strong>, the purchase of 352 LawrenceHargrave Drive, Thirroul, added a furtherproperty to the residential leasing portfolio,to enable construction of a new communitycentre. Conversely, 13 Stewart Street,<strong>Wollongong</strong>, was demolished in June 2004to make way for an access to the surfacecar park in Bank Street.Market Return on Leasedand Licensed PremisesWith the exception of several residential andcommercial tenancies (due to a reducedrental and a year rent free period negotiatedfor two community group leases), individualmarket rates set in January 2004 wereachieved during the period under review. Thequarterly excess return on market value forKembla Terraces ranged from 0.4% to 5%.The 0.4% excess return occurred duringthe third quarter when long-term tenant,Peedoms Lawyers, vacated three units. Thevacancy rates for our commercial propertiesranged from 0% to 3% per quarter, whileresidential vacancies varied from 0% to4.6%. Both were excellent results, well belowthe acceptable target of 10% vacancies.Throughout the year, all vacant commercialor residential tenancies demonstrated anaverage re-letting period less than thefive-week timeframe set as a performanceindicator. Again, a welcome result andindicative of a buoyant localmarket for leased properties.Database for Property ManagementThe new lease management system, toassist with the management of <strong>Council</strong>’s 300plus leases is due to be implemented earlyin the new year. Its introduction requiredconsiderable resources to be utilised inpre-testing, setting up software and trainingstaff. Programming for debtor and TRIMinterfaces and standard letters was finalised,whilst data entry is approaching completion.Final testing will occur following the dataentry phase. A strategy for the managementof leasehold insurances was implemented inassociation with the new system.
commercial development performance against objectives 45Street Cafe RegulationsOur officers are continuing to formalisestreet cafe regulations, in line with the<strong>Wollongong</strong> <strong>City</strong> Outdoor RestaurantPolicy and the Outdoor Restaurant Liaisonand Compliance Procedure. Statisticsand data are being collected to assist in apresentation outlining the effectiveness ofthe policy and procedure.Options for the Surf Leisure ResortThe financial feasibility analysis for thesite is nearing completion. Finalisation isdependent on a condition asset audit. OurEngineering Services Division is arrangingto expedite the audit as an integral part of afeasibility study.Charity Bins PolicyWe are currently drafting a policy onthe provision of charity bins that will besubmitted to <strong>Council</strong> for consideration.Operation of Lagoon RestaurantConstruction of the new Lagoon SeafoodRestaurant in North <strong>Wollongong</strong> is welladvanced with the anticipated completiondate being August 2004.Building Inspection DuringLease ReviewProperty officers have developed a requestsystem for our Engineering Services Divisionto perform building inspections at the timeof each lease review. This initiative will beultimately incorporated into our new landmanagement system.<strong>Wollongong</strong> <strong>City</strong> HeliportMarketing StrategyWork did not proceed on the developmentof a marketing strategy for the heliport,due to resourcing issues within the PropertyDivision.<strong>City</strong> Beach Surf Life Saving ClubThe long-anticipated <strong>City</strong> Beach Surf LifeSaving Club complex was finally completedin December <strong>2003</strong>, in partnership withKollco Holdings Pty Ltd. The old <strong>City</strong> BeachSurf Life Saving Club was also demolished,with the site to be incorporated into Stage 2of the foreshore improvement program.Darkes Road/Integral EnergyRecreation AreaIn July <strong>2003</strong>, <strong>Council</strong> acquiredapproximately 22 hectares of land atDarkes Road, Brownsville, for the creationof a regional community recreation park.Since that time, a community managementcommittee has been formed, along withthe implementation of environmentalremediation of the site incorporating regularvolunteer cleanup days. Master planningfor the future development of the park iswell advanced with a community workshopscheduled to take place on 15 July 2004.Lease negotiations are also underwaywith the Illawarra Motoring Museum andsporting groups. The project is on time andwithin budget.<strong>Wollongong</strong> Gateway VisitorInformation CentreThe concept plan for the gatewaydevelopment at Bulli Pass Scenic Reserveis finalised and will be reported to <strong>Council</strong> aspart of an overall feasibility study in August2004. It is anticipated that a developmentapplication will be lodged in late 2004. Theinformation centre will create a sense of placeat the city’s northern boundary and serve asa significant tourist attraction inits own right.North Beach Developmentand Plan of ManagementRestoration of the North Beach Kiosk wascompleted in the first half of this financialyear, with the new lessee commencingoperations in December <strong>2003</strong>. Negotiationscontinue regarding the redevelopment of theBathers’ Pavilion, with the aim of having adevelopment application lodged with<strong>Council</strong> in 2004-05.Refurbishment of Kembla TerracesThe external refurbishment of our majorcommercial property, Kembla Terraces,included external repainting, installation ofnew light fittings and a signage upgrade.The facade now sports a fresh, modern lookthat will ensure its competitiveness with othercommercial leasehold premises withinthe <strong>Wollongong</strong> CBD.Above: Our flagship commercial lease complex,Kembla Terraces, is located on the cnr Market andKembla Streets and was refurbished this year.Right: Lesa Wilson, from our Property Division,inspecting the new <strong>City</strong> Beach Surf Life Saving Club.Outlook for 2004-05We will review our OutdoorRestaurant policies, in line withindustry guidelines and with regardto sound financial risk managementpractices to optimise our financialreturns. We will also review ourpolicy for the leasing and licensingof our land and buildings, in orderto establish more transparent andequitable opportunities for thecommunity.The ongoing responsibility ofachieving acceptable marketreturns on all our commercialand residential leased propertiescontinues to be a major focus,as will the development of the<strong>Wollongong</strong> Gateway VisitorInformation Centre.
46 commercial development performance against objectivesCommercial BusinessTourist Parks Operationsand Occupancy RatesSince the general downturn in 2001, ourtourist parks have experienced an annualincrease in overall operating surplus. Thiswas the case this year, largely due tounusual weather conditions extending thehigh season through to April, together withan increase in major sporting events held inthe <strong>Wollongong</strong> area. Increased occupancyrates during the off season were mainlyattributable to upgraded accommodation atBulli and Windang.Occupancy rates for all on siteaccommodation were recorded at 64.28%.This represents a slight decrease overlast year’s figures and also falls slightlyshort of our target of 65.95%. The results,however, remain significantly higher than ourbenchmark of 52.35%.Customer Feedback onTourist Park OperationsCustomer feedback continues to beexcellent and in excess of performancetargets in the areas of customer serviceand cleanliness. On the other hand, thecategories relating to park maintenance andvalue for money services were 5% belowtarget - a reflection on the lack of amenitieswhen compared to our competitorswho offer pools, tennis courts and otherfacilities. The overall result was pleasing withcustomer satisfaction levels above 85%in all areas.Tourist Park Strategic PlanWork is progressing on the implementationof a strategic plan for Bulli, Corrimal andWindang tourist parks. The plan willidentify major redevelopment projects andinvestment in new facilities to make theparks more competitive. Business caseassessments will be undertaken for eachstage of the strategic plan during 2004-05.Development andInvestment OpportunitiesFinalisation of the property purchase at46-50 Underwood Street, Corrimal, tookplace on 31 May 2004. This site, togetherwith the adjoining car park, will be thesubject of a future feasibility study to identifyits commercial potential. Additionally, minorcapital expenditure worth $3,900 wasutilised to construct new gardens at theBulli Cemetery, as sections B and C, inJuly <strong>2003</strong>. To date, total sales for thesesites amounts to $26,000.Bridgewater Feasibility StudyDevelopment of a feasibility study for theresidential development project at Bridgewaterwas delayed pending the outcome of theWest Dapto master planning project.West Dapto Master PlanThere is mounting pressure to establishnew residential home sites within the<strong>Wollongong</strong> region. West Dapto is one of thecity’s last remaining green field sites for largescaledevelopment. Initial process mapping ofthe release area at West Dapto has begun.The next stage will be to identify andcoordinate key landowners. This will beundertaken subsequent to the completionof the strategic planning process. We willwork with the community to ensure thatsustainable development opportunities areincorporated into master planning for this site.Below: Martin Noor, our maintenance andgeneral cleaner at the Bulli Tourist Parktakes great pride in maintaining the facilitiesto a high standard.Combined operating surplus for thetourist parks exceeded both theprojected surplus, and last year’sresult. An advertising campaignduring the off-season contributedto the surplus.Average annual occupancy ratefor all on site accommodationremained relatively stable over thelast twelve months, but below thetarget of 65.95%.The number of cremations carriedout in <strong>2003</strong>-04 was slightly belowthe previous year’s results, buton the whole remain relativelystable since the peak recorded in1999-2000.While we retained our crematoriummarket share of 77% this year,this fell 1.2% short of our target.In fact, overall market share hasremained constant over the lastfive year period.Cemeteries market share fell to thelowest point in five years. As such,it was well below our performancetarget of 43%. We face aggressivecompetition in this area of ouroperations.The number of burials conductedby <strong>Council</strong> dropped from thelevels recorded over the last fouryears and, once again, reflectsthe competition we face in theprovision of these services.
commercial development performance against objectives 47Memorial Gardensand Crematorium Market Share<strong>Council</strong> operates in a competitiveenvironment in the provision of cremation,burial and memorialisation services. Wetrack our performance through monthly andquarterly reports, detailing progress againstkey performance indicators. In <strong>2003</strong>-04, wewere commissioned to undertake 175 of the479 total burials in the <strong>Wollongong</strong> area.This represented a market share of 36.5%,falling short of our performance target of43%. In relation to cremation services, 1,417were carried out in <strong>Wollongong</strong> in <strong>2003</strong>-04,with <strong>Council</strong> performing 1,094. This equatesto 77.2% market share which, although asimilar result to the previous year, fell short ofour key performance indicator by 1.2%.Memorialisation ResultsA significant percentage of the crematorium’sincome is from the memorialisation ofcremated remains, not only within the<strong>Wollongong</strong> <strong>City</strong> Memorial Gardens butalso at Bulli, Scarborough and Helensburghcemeteries. This year, our market share wasrecorded at 37%, with 2.3% of cremationsstill awaiting instructions for disposition. Whennotified, this has the potential to increasethe number of placed ashes for the year.This is due to the memorial gardens allowingcustomers up to 12 months to decide on theplacement of cremated remains.Macedonian Section DevelopmentPortion Two of the Macedonian section wasdeveloped at the <strong>Wollongong</strong> Lawn Cemetery,with 100 lots sold by June 2004.Additions to Helensburgh CemeteryDuring the year, a new garden was created atHelensburgh Cemetery for the placement ofcremated remains.Commemorative Servicesand Special EventsSeveral special commemorative services wereonce again held at the crematorium during<strong>2003</strong>-04. These included the highly successfulMothers Day, Fathers Day and Christmascommemorative services. Each eventwas well publicised in the local media andattracted between 220 to 320 participants.We also received very positive communityand customer feedback, as well as from localfuneral directors. Donations from peopleattending these services benefited a range oflocal charities.Outlook for 2004-05We will continue to work on thepreparation and implementationof a fully documented strategicplan for the Crematorium andCemeteries, incorporating plansfor the future developmentof Kembla Grange Lawn Cemetery.Another major project will be theconstruction of Stage 2 of themausoleum development atKembla Grange Lawn Cemetery.We will also work to implementservice agreements in consultationwith local funeral directors, as wellas undertaking customer surveysto provide feedback mechanismsfor reviewing our strategies andimproving service levels.From an employee perspective,a key focus for the coming yearwill be to review, develop andimplement occupational healthand safety strategies andinformation management systems.New Furnace Lining at CrematoriumThe new furnace refractory lining for thecrematorium was successfully installed,resulting in minimal disruption to serviceprovision. The contractor was also able tointegrate many new safety improvements intothe furnace relining project, including thosedesigned to alleviate the manual handlingdifficulties previously experienced.<strong>Wollongong</strong> CemeteryBurials DatabaseWork continued on the transfer of paperand microfiche-based burial records ontoa computer database. The files are availablefor use by staff members, as well as localgenealogy and family history groups.At year’s end, the <strong>Wollongong</strong> Cemetery’spre-1967 burial records were 95%complete for the Anglican portion, alongwith 50% of the Catholic portion and 60%of other minority sections.New Facilities at<strong>Wollongong</strong> <strong>City</strong> Memorial GardensThe recently landscaped First RoseGarden, at the memorial gardens,generated the sale of 27 memorial sites.The project also incorporated therefurbishment of the office garden. A furtherlandscaping initiative saw the construction ofadditional family rockeries, in responseto customer requests. Five of the newrockeries were sold by year’s end.Above: Gardener, Wayne Blaker, trimmingthe spectacular rose garden at the<strong>Wollongong</strong> <strong>City</strong> Memorial Gardens.Information seminars<strong>Wollongong</strong> <strong>City</strong> Memorial Gardens, inconjunction with H Parsons Funeral Directors,Retireinvest and Centrelink, organised twowell-attended seminars Your Life, Your Choice,Your Assets during the year. At the seminars,we were able to inform the community of theoptions available for cremation, memorial andburial services.Site Safety ManagementThe site safety management plan for thememorial gardens and crematorium wasreviewed in <strong>2003</strong>-04 to reflect currentsafety standards. The crematorium wasincluded in a safety audit held in conjunctionwith WorkCover.CAD System for Grave LayoutsDue to resourcing issues, the investigation intothe feasibility of installing a CAD system forgrave layouts was postponed.Kembla Grange LawnCemetery Strategic PlanWe have met with outside consultants todiscuss the development of a strategic planfor this facility. A funding submission for theproject will be developed in 2004-05.
48 waste management performance against objectiveswaste managementProgram Goal Effective management and minimisationof waste collection and disposal whilst encouraging commercialand residential recycling.Waste Management ExpenditureFunctions:Collection and Recycling $13.569mDisposal $5.356mWaste Management IncomeFunctions:Collection and Recycling $13.013mDisposal $5.274mWaste Management Expenditure vs.Total <strong>Council</strong> ExpenditureWaste Management Income vs.Total <strong>Council</strong> IncomeTotal WasteManagementexpenditure was$18.925mor 10.84% of total<strong>Council</strong> expenditureTotal WasteManagementincome was$18.287mor 10.42% of total<strong>Council</strong> incomeRecycling Option for Small BusinessDuring the year, a new recycling optionwas made available to small business. Thisinvolved modifications to the existing 240litre recycling bins to include only thosematerials generated by each business. Amongthe choices available, were cardboard andpaper collection suitable for paper-basedbusinesses; or co-mingled bottles, cans andcontainers for food stores.Sponsorship, Events and PromotionsMedia releases appeared in selected mediaon a range of topics, including the newrecycling options for small business, the gloverecycling program, the annual householdchemical clean-out, school competitionwinners, Planet Ark’s Christmas card andcartridge collection, small bin options, schoolholiday activities and phone book recycling.The Earthworks course was also promoted tosections of the community from non-Englishspeaking backgrounds.Waste ManagementPolicies<strong>Council</strong> is firmly committed to the reductionof waste to landfill. The domestic wastecollection program consists of weeklygarbage services, fortnightly recyclingand green waste services and an annual cleanup service. Residents have a price incentiveto use small capacity garbage bins and, atpresent, approximately 95% of householdsuse either 80 litre or 120 litre garbage bins.The price structure and the provision of greenwaste and recycling facilities at the wastedisposal depots, at Helensburgh and WhytesGully, continue to encourage residents toreduce waste disposed by landfill.Resource <strong>NSW</strong>During <strong>2003</strong>-04, Resource <strong>NSW</strong> wasrestructured with the Environment ProtectionAuthority to form a new state governmentagency called the Department of Environmentand Conservation (DEC).Waste LevyThe waste levy applicable within the Illawarra,Hunter and Central Coast regions will rise inJuly 2004 from $11.30 to $13.20 per tonne.The SWERF ProjectIn mid <strong>2003</strong>, EDL decided to withdrawfunding from the SWERF project and began tosearch for a new partner to fund this initiative.The search proved unsuccessful and theSWERF project was ultimately terminated.Collection and RecyclingWil B Wise CampaignThe successful Wil B Wise campaigncontinued, incorporating five new messages.These were plastic not so fantastic promotingalternatives to plastic bags; rose colouredglasses pointing out that coloured glassis suitable for recycling; can those cansinforming that all steel cans can be recycled;get nappy happy looking at alternatives todisposable nappies and don’t get the pointpromoting free syringe disposal.A major promotional activity for the periodunder review was held in conjunction withthe Viva la Gong street parties from29 October to 31 October <strong>2003</strong>. Thesewere conducted as ‘waste wise events’.Recyclables and organics were collectedfrom these events with waste managementstaff providing bin monitoring services.The promotion also provided ampleopportunities for community education.Industry RecognitionThe waste management and recyclingprogram continues to receive widespreadrecognition for its innovative practices.This year, <strong>Council</strong> was awarded third prizein the Keep Australia Beautiful Metro Pride<strong>2003</strong> Awards in the ‘Community Initiatives’category. The topic was the CommunityEducation Tackles the Issue of ContaminationIn Bins Head On. Waste Management wasshort-listed in the <strong>2003</strong> Integral EnergyIllawarra Business Awards in theSustainability - Corporate and SocialResponsibility category and was a finalist inthe <strong>2003</strong> Steel Can Recycling <strong>Council</strong>’sBest Practice Awards.
waste management performance against objectives 49Promoting Waste Managementand Minimisation to Local SchoolsThe Be Waste Wise with Wil B Wise SchoolCompetition was run from July to September<strong>2003</strong>. Infant students were invited to writea letter to Wil B Wise letting him know howthey practice being waste wise at home andat school. Primary students were challengedto illustrate their own Wil B Wise cartoon stripbased on waste avoidance, reuse or recycling.Another competition titled Composting:The Natural Way to Reuse Our Food Wastewas run in the third quarter. Infants wereasked to draw a picture of two creaturesfound in compost heaps and to write a listof food items that go into compost heaps.Primary students were invited to design aphotographic or illustrative collage titled: ALiving Compost System and the CreaturesWithin It.They also had to outline what helps tobreakdown the organic matter intocompost. Prizes to the value of $1,000each were on offer in all four competitions.In conjunction with these, a special dealwas made available to the first fiveschools that followed up with a bookingat Glengarry Cottage.Free Syringe DisposalThe free no questions asked syringe andsharps disposal brochure was updated andprinted during the year. The new brochure hasa more personal approach and promotes asafe family environment through the correctdisposal of syringes and sharps. The look,tone and feel of the Wil B Wise campaignwere incorporated into the new design. Atotal of 28 pharmacies are now listed in theredesigned and newly distributed brochure.Below: Pharmacist Thomas Ho andCatherine Hamilton, from our WasteManagement section, at the DowntownPharmacy in Crown Street, <strong>Wollongong</strong>.The gradual increase in thenumber of garbage servicesprovided parallels increasingpopulation levels.There was a slight increase inthe amount of recycling materialcollected this year, brought aboutby ongoing promotions andcommunity education activities.Participation rates for recyclingservices have remained essentiallyconsistent over the last five yearperiod.Our program to improve recyclingrates at the city’s commercial,hospitality and retail outlets ismaking an impact on the numberof recycling bins at these outlets.Overall, there is a downward trendin contamination rates, apartfrom a small increase this year.We will continue our emphasis oneducating the community on whatand how to recycle.
50 waste management performance against objectivesWaste Information on the InternetAll waste management and minimisationinformation can be easily accessed on ourwebsite. Regularly updated informationabout our collection services, annualhousehold clean up activities, variouswaste fact sheets, and details of schoolcompetitions are just some of the topicsdirectly available from the site.Waste Service Information KitsThe comprehensive annual waste informationkit was distributed to all households in the<strong>Wollongong</strong> area in June 2004. The 2004-05kit contained a collection calendar, householdclean up leaflet and a flyer outlining ‘smartshopping’ and plastic bag reduction. Thismessage was amplified through the inclusionof a printed calico bag distributed withinthe kit. The calico bag was an initiative thatpromoted the theme: <strong>Wollongong</strong> <strong>City</strong><strong>Council</strong> cares for the environment.Be waste wise, Avoid, Reuse, Recycle.Reuse this bag and say NO to plasticbags, and included the Wil B Wise logo.National Recycling WeekThis major community event was extensivelypromoted through the local media. TheIllawarra Mercury and Advertiser newspapersran full-page articles and photographs,with Radio Illawarra, Vox fm and i98fmbroadcasting the range of activities plannedfor the week. These included a display in ouradministration building foyer and a manneddisplay in the Crown St Mall from Tuesdayto Friday of that week. An information flyerwas developed for distribution at the display,and through branch libraries and communitycentres. A week of events was also heldat Glengarry Cottage. These targeted bothadults and children and was a great success.240 Litre Bins to Commercialand Public AreasThe programmed installation of 240 litre litterbins within commercial areas, public reservesand beaches throughout the city is nowcomplete. During the year, 447 requests werereceived and acted on regarding the removalof litter.Green Team ActivitiesThe Green Team continues to educate thecommunity in relation to the correct use ofthe domestic waste collection service. In<strong>2003</strong>-04, the team visited 517 residents toresolve problems in utilising the service. Wastereduction presentations were also made to 39community and school groups.Welcome KitA welcome kit was mailed to all new propertyowners in the <strong>Wollongong</strong> Local <strong>Government</strong>Area. The kit contained information onthe correct use of waste bins, an annualhousehold clean up brochure, waste depotinformation, a collection calendar and a letterof welcome to the neighbourhood. Supplies ofthe kits were also delivered to local real estateagents who distribute them to new tenantsmoving into multi-unit dwellings.Below: Our programs encourage residentsto down size their red top garbage bins toreduce the amount of waste going to landfill.The domestic waste collectionservice has remained relativelystable over the last five years.There was a slight increase inparticipation rates for the greenwaste collection this year. Overall,the community remains verysupportive of this initiative.The amount of green wastecollected from residential kerbsideshas increased slightly this year, inline with improved participationrates.Contamination rates in thecollection of kerbside green wastehave decreased over the lasttwo-year period due to continuedcommunity education.While there has been a slightdecline in the amount of recyclingmaterials collected since1999-2000, we were able toreverse the trend this year throughincreased promotional activity.The annual clean up collectionrate has increased significantly,due to a greater number of thecommunity taking advantage ofthis service.
waste management performance against objectives 51RUM - Return Unwanted MedicinesThe Return Unwanted Medicines Programoperates year round and invites the city’sresidents to return any unwanted medicinesto their local pharmacy. The program ispromoted through regular advertisements inThe Advertiser newspaper, in addition to thedistribution of information brochures. Theseare available from the central library and thebranch library network and from Level 6of our administration building.DisposalMeeting the Requirementsof Resource <strong>NSW</strong>Resource <strong>NSW</strong>’s requirements (in futurethat of the Department of Environment andConservation) were all met during the year.Operation of Waste Disposal DepotsThe landfill sites at Whytes Gully andHelensburgh waste disposal depots arelicensed by the EPA. Under the licenceagreements, <strong>Council</strong> is required to test anyoverflow from stormwater ponds for both pHand total suspended solids. The Trade WasteAgreement with Sydney Water also requiresongoing testing of leachate quality for bothtotal suspended solids and ammonia levels.Monitoring of these conditions continuedthroughout <strong>2003</strong>-04.In accordance with the EPA landfill licence,construction has commenced on two newleachate storage dams and a new stormwaterpond at Whytes Gully. The dams will increasethe storage volumes for landfill leachate toreduce the risk of overflows during excessivewet weather.Outlook for 2004-05Our aim is to provide recycling,collection and waste disposalservices that approach bestpractice. Key projects for thecoming year include furtherpromotion of the domesticgarbage, recycling and greenwaste services and theestablishment of a materialsreceival and transfer facilityat the <strong>Wollongong</strong> ResourceRecovery Park. Our long-termstrategy is for the ResourceRecovery Park to become thecentre of excellence for wasteavoidance and minimisation.We will also work to ensure thatall operational requirements aremet at our waste disposaldepots, in addition to meetingthe requirements of theDepartment of Environmentand Conservation.Above: Roger Watson, SOIL CO, sortingthrough green waste at Whytes Gully Tip.Above left: The RUM program promotesthe return of unwanted medicines topharmacies.The new stormwater pond will also improverunoff quality during episodes of excessivewet weather through the use of aquatic plantsand a longer flow path for stormwater.New Ammonia Treatment PlantThe construction of a new AmmoniaTreatment Plant was commenced at WhytesGully Waste Disposal Depot under contractto a joint venture of URS and PET Australia.The plant will be commissioned in late 2004and will reduce ammonia levels in the landfillleachate to meet Sydney Water’s standardsfor discharge to sewer.Work is also underway on the constructionof an ammonia treatment plant to treat theleachate discharged to sewer, as part of therequirements of Sydney Water. These projectsare important to ensure that we continue tocomply with relevant operating requirements.While the level of waste to landfillrose this year, the increase wasmarginal. The figure includes bothdomestic and commercial wasteand, as such, may also reflectincreased economic activity.
52 recreation and natural resources performance against objectivesrecreation and natural resourcesProgram Goal To work with our community in providing a rangeof programs and services that will sustain and improve the city’srecreation, lifestyle, biodiversity and natural assets.Recreation and Natural Resources ExpenditureFunctions:<strong>City</strong> Parks $8.962mLeisure Services $7.577mConservation and Natural Resources $2.888mRecreation and Natural Resources IncomeFunctions:<strong>City</strong> Parks $2.115mLeisure Services $2.806mConservation and Natural Resources $0.590mRecreation and Natural Resources Expenditure vs.Total <strong>Council</strong> ExpenditureTotal Recreation andNatural Resourcesexpenditure was$19.427mor 11.13% of total<strong>Council</strong> expenditureRecreation and Natural Resources Income vs.Total <strong>Council</strong> IncomeTotal Recreation andNatural Resourcesincome was$5.511mor 3.14% of total<strong>Council</strong> incomeAction Requests for Park WorkDuring <strong>2003</strong>-04, there were 1,655 requestsfor park action, a decrease of 129 fromthe previous period. However, the mowingof parks and adjoining property reservesremained the community’s most requestedtask. Vandalism and litter requests were alsoat a high level. Grass cutting requests,on the other hand, decreased due toprevailing drought conditions.Tree Maintenance ServicesThe <strong>City</strong> Parks function maintains over60,000 trees each year, within our streetsand parks. In <strong>2003</strong>-04, we received 2,838tree maintenance requests, a dramaticincrease over the previous period. In August<strong>2003</strong>, <strong>Wollongong</strong> was subject to a severewindstorm that directly influenced thedemand on tree maintenance in the region.The growing demand to provide the citywith appropriate tree canopies will presentan ongoing challenge in meeting futuremaintenance requirements.<strong>City</strong> ParksPlaygrounds and Park FacilitiesCustomer feedback provides valuableinformation regarding the maintenance ofmajor park areas. In <strong>2003</strong>-04, customersatisfaction surveys were undertaken atCordeaux Heights, Russell Vale Golf Courseand various other parks, playgrounds andsporting fields within the city. The systemallows customers to identify areas of highestand lowest satisfaction. This, in turn, providesdata for our maintenance staff to identifyareas of focus and required resource levels.Customer feedback has confirmed thatthe community is generally satisfied withstaff performance and the quality of parkmaintenance. The areas of highest satisfactionare in lawn maintenance and the provision ofadequate information signage. Park furniture(tables, seats and shelters) was identified asproviding the least satisfaction. Subsequentto the customer survey, we have completeda range of improvement works, includinginstallation of park furniture and shade areas.Ensuring Playground ComplianceOur ongoing emphasis on the maintenanceof existing playgrounds has resulted in 99%compliance with Australian Standards.Vandalism is the main barrier to achieving fullcompliance. Maintenance work in <strong>2003</strong>-04included soft-fall upgrades, along with repairsand modifications to existing facilities.Safe Working PracticesOur workforce and contractors ensure thatsafe work practices are in place whilemeeting seasonal challenges and complyingwith specified service schedules at a varietyof sites.Land Under ManagementWe added an additional 15 hectares ofcommunity land to our portfolio this year,bringing the total hectares maintainedby <strong>Council</strong> to 2,791. These new sites are nowassimilated into our ongoing maintenanceprograms.Russell Vale Golf CourseRussell Vale Golf Course continues toperform well in maintaining its facilities to ahigh standard and within allocated budgetexpenditure. The main challenge for this sitecomes from the ongoing water restrictionsassociated with the current drought.Nevertheless, through the installation of theleachate water reuse fairway irrigation system,the overall presentation of the golf course wasenhanced this year.Periods of prolonged good weather, coupledwith an attractive pricing schedule, sawan increase in patronage at the coursethroughout <strong>2003</strong>-04. This is a pleasing resultconsidering external industry trends haveindicated a decrease in participation ratesfor this sport.Customer satisfaction surveys again indicatea positive result against the target of 75%satisfaction. Feedback from these surveys isused to determine appropriate maintenanceresources and highlight any deficiencies toaddress through capital funding submissions.
ecreation and natural resources performance against objectives 53Whilst this year’s total of 45,060 courserounds was below the 52,000 target, it didindicate a turnaround from previous years.In fact, it represents a 6% increase over lastyear’s result. The Centre for Environmentaland Recreation Management’s benchmarkfor golf courses confirmed that Russell Valehad an auspicious year, with significantlymore visits per course square metre.Russell Vale Golf Course FeesUnfortunately the fee structure used in<strong>2003</strong>-04 was a barrier in obtaining desiredrevenue levels. Despite not having achievedthe income target, the course did managea small operating surplus. Price subsidylevels may be reduced in future years toallow for incremental market pricing. This willallow Russell Vale to meet its targets, whileproviding an affordable recreational facility.Leisure ServicesEmployee Health ProgramThe Employee Health Program is a valuableservice that provides a convenient fitnessfacility for our employees and their families.Partnership withSurf Life Saving Illawarra<strong>Council</strong> has formalised its relationship withSurf Life Saving Illawarra and its 17 affiliatedvolunteer surf clubs through the signing ofa service level agreement. This agreementestablishes recurrent funding to the local surfclub movement to assist with increased costsin providing this essential community service.We also established a coordinated prioritylist for the development of surf club facilities,in conjunction with Surf Life Saving Illawarra.The much anticipated <strong>Wollongong</strong> <strong>City</strong> SurfClub was successfully completed and ournext priorities are the construction of sharedpatrolled facilities at Windang, Bulli, Corrimaland Coalcliff beaches.Improvements to Helensburgh PoolNew shade facilities were constructed, inconjunction with the Helensburgh PoolImprovements Committee, prior to thecommencement of the swimming season.This follows last year’s successful introductionof pool water solar heating and thermalblankets to significantly improve customercomfort at the pool.Outlook for 2004-05The city’s public parks and sportingfields are major communityassets that must be safe and wellmaintained. Priorities within thecoming year are to plan for a skatefacility at Helensburgh, preparea needs analysis for all publicparks, including a review of shadefacilities and park furniture, andto improve portable goal postsand sleeves at soccer groundsthroughout the city.We will continue to upgrade thestandard of Russell Vale Golf Courseto ensure that it remains a popularand well used community facility.Yet another initiative will beto implement a communityconsultation program on theremoval of obsolete infrastructureat four rock pool sites identifiedwithin a recent heritage study.The facility is well used and continues toachieve high satisfaction ratings from itsmembers. This year’s customer satisfactionratings consistently exceeded 90%.Community Safety at the BeachThe city’s lifeguards performed a record1,685 rescues in <strong>2003</strong>-04. This was mainlydue to modified recording methods andimproved intervention techniques by staff.Safe and Efficient Tidal Rock PoolsThe roll-out of standardised signage at alltidal rock pool sites is now finalised. Anotherinitiative to improve pool safety saw theinstallation of handrails at seven locationsthroughout the city. Following communityconsultation, remedial works took place attwo priority locations: Wombarra toddler’spool and Scarborough North tidal rock pool.Compliance standards with thecity’s playgrounds were thehighest to date, due to a sustainedinvestment of around $160,000 perannum to maintain these assets.There has been a steady increasein the amount of open spacecreated from new subdivisions. Wecontinue to ensure wide areas ofopen spaces are made availablefor community use.Course usage figures this yearreversed the downward trendexperienced over the last few years.This was a pleasing result as, overall,golf participation rates are declining.A significant increase was evidentin the number of beach rescuesperformed by our lifeguards thisseason, largely due to modifiedrecording methods and improvedintervention techniques.
54 recreation and natural resources performance against objectivesAquatic Facilities AttendanceWhile the city’s eight outdoor aquaticfacilities remain well used, overallattendances continue to decline.This was partly due to Port Kembla Poolbeing out of action for the entire seasondue to remedial works. Visitation figuresat the two commercial facilities at Corrimaland Dapto were also down.Leisure Centre OperationBeaton Park and Lakeside leisurecentres provide quality, cost effectiveservices to meet the needs of membersand casual users. While both centresmaintained their excellent income andmembership levels, Beaton Park isexperiencing a sustained drop in overallusage. However, we recognise theimportance of these community facilitiesand, in 2004-05, will invest in furtherstate-of-the-art gymnastics, circuit andcardio theatre equipment at both centres.Water QualityWater quality in <strong>2003</strong>-04 continued toachieve standards set by the <strong>NSW</strong>Department of Health.Surf Sense ProgramOur award-winning Surf Sensecontinues to be implemented duringthe Winter season. This year, the watersafety education campaign reached11,541 primary school children at 87schools within the <strong>Wollongong</strong>,Campbelltown and the Southern Highlandsregions. Grant funding, through the <strong>NSW</strong><strong>Government</strong>’s Safe Waters campaign,again supported this initiative.<strong>City</strong> Swim ProgramA new partnership forged with the Royal LifeSafety Society of Australia (<strong>NSW</strong>) to runtheir award-winning Swim and Survivelearn-to-swim program at our eight outdooraquatic facilities. Enrolments are expectedto increase as the program establishes itselfwithin the local community.Illawarra Regional Athletics CentrePrudent planning and budgeting has seen atender awarded in June 2004 for scheduledtrack resurfacing of this international standardfacility. The works are to be undertakenshortly, funded through our RestrictedCash Reserve to a cost of $350,000.Replacement of Beaton ParkPool RoofMajor refurbishment work at BeatonPark pool resulted in the replacementof the roof membrane, installation ofacoustic baffling, and refurbishment ofpool filtration and circulation systems.The outcome has seen a huge improvementin water and air quality, and a muchquieter swimming environment.Conservationand Natural Resources<strong>Wollongong</strong> Botanic GardenThe botanic garden remains a popular andwell used community facility. Visitation ratesduring <strong>2003</strong>-04 resulted in an increase of65,000 over last year’s figures, largely broughtabout by the implementation of new initiativesand promotional activities. It is expected thateven greater numbers will visit the gardenin future years through the expansion ofits collections and its innovative outreachprograms. Community feedback reflectshigh satisfaction levels with this historic andbeautiful regional attraction.Above: Michael Meehan,our lifeguard at TowradgiBeach, ensures the beachis safe for swimming.While participation rates for 03-04were below previous years, theystill met the demand from schoolsto partake in the Surf Senseprogram.A downward trend is evidentin pool visitation figures sincethe peak recorded in 2001-02.The lower figures can be partlyattributed to the closure of PortKembla pool for the entire season.This year saw the largest declinein usage for Beaton Park LeisureCentre. The outcome wasexacerbated by the closure of theheated pool for eight weeks for roofrepairs to be carried out safely.Income levels generated by BeatonPark Leisure Centre remainedrelatively stable over the last fiveyears, with the centre meeting thisyear’s performance indicator.Lakeside Leisure Centre continuesto record an upward trend inincome. This is mainly attributableto a greater draw population fromnew housing developments in theKanahooka Point area.
ecreation and natural resources performance against objectives 55Upgrade to Mt Keira LookoutPlanning and design templates for the MtKeira upgrade were developed during theyear, with construction set to commence inAugust 2004. Works include the beautificationof the existing car park and picnic areas,and the placement of a new lookout alongthe northern edge of Mt Keira that providesdisabled access.Artist in ResidenceThe inaugural Artist in Residence programat the botanic garden, featuring the work ofJane Davenport, was an outstanding success,resulting in national and international exposurefor her Ladybird Chronicles. Exhibitions ofher spectacular and colourful macro imageswere held at various botanic gardens andnational art galleries, as well as the BarcelonaInternational Botanic Garden Conference.This year’s artist in residence is Heidi Threlfowho is using the botanic garden as inspiration,while working from studio space withinthe Discovery Centre. Heidi’s work will beexhibited during the <strong>Wollongong</strong> GardenFestival in October 2004. A painting workshopwill also be held as part of the residency.<strong>Wollongong</strong> Garden FestivalThe highly successful <strong>2003</strong> <strong>Wollongong</strong>Garden Festival, the flagship event for the<strong>Wollongong</strong> Botanic Garden, was held inconjunction with the Viva la Gong Festival.This year’s activities were wide and varied:from environmental workshops educating thecommunity on garden design, irrigation andtree management, to bus tours around thegarden grounds. Other well-attended activitieswere Shakespeare’s The Tempest and theConservatorium of Music’s jazz concert.Botanic Garden BookDuring the year, author Dena Leighton,researched and wrote a book on thebotanic garden titled: A Story of Beauty andDiversity featuring interviews with formercurators, members of the Hoskins family, and<strong>Council</strong> staff who had a hand in the gardensdevelopment. This invaluable resource will beavailable for purchase in September 2004.A massive increase in botanicgarden visitation rates wasevidenced this year, due to theinnovative programs and specialevents that attracted significantmedia coverage.While Bushcare group numbershave almost reached full capacity,the total volunteering hourscontinues to increase - evidencethat environment management isimportant to the community.Discovery CentreThe Discovery Centre runs fun andinteresting programs aimed at educatinglocal adults and school children aboutthe environment. It also has an outreachcurriculum that promotes the botanicgarden to audiences around the state andthe country. Attendance figures for theyear totalled 14,089, significantly higherthan the previous year’s result, and reflectthe innovative approach to environmentaleducation.Outlook for 2004-05Two major projects for theConservation and Natural Assetsfunction in the coming year are toestablish and maintain a BushfireAsset Protection Zone thatrecognises the balance betweenecologically sustainable developmentand risk management principlesand to undertake rectificationworks to the Japanese bridge at the<strong>Wollongong</strong> Botanic Garden.Participation rates for 2001-02were outstanding due to theextraordinary high number ofprograms implemented that year.Nevertheless, visitation figures for<strong>2003</strong>-04 are pleasing.The amount of nursery plantspurchased by the public increasedover last year, but are still reflectiveof prevailing drought conditionsthat have reduced both demandand the number of available plants.Below: Heidi Threlfo artist in resident at thebotanic garden.Bushcare ActivitiesThe sustainable management, conservationand restoration of natural areas are ongoingchallenges for the Bushcare programand our community. Bushcare groupsundertook creek and riparian land restoration,bushland regeneration, dune restoration andrevegetation works that required the plantingand maintenance of 15,500 indigenousplant species. A band of 274 volunteerscontributed 16,771 hours to the 578 eventsscheduled during the year. By way of support,volunteers had access to presentations onplant and eucalypt identification, weed busterworkshops, restoration techniques, and thesafe use and handling of herbicides.Botanic Garden NurseryThe nursery at the botanic garden propagatesplant material for its own use and to distributeto the local community through plant sales andthe award-winning Greenplan program. Whiledistribution rates were higher than last year,drought conditions continue to have a majoreffect on plantings. Nevertheless, performancetargets were met, as prevailing weatherconditions are factored into these figures.<strong>Wollongong</strong> Greenhouse ParkThe <strong>Wollongong</strong> Greenhouse Park progressedlargely through the efforts of local volunteersand community groups. Plans for theproposed education centre were supportedby <strong>Wollongong</strong> Rotary and BlueScope Steel.This culminated in a development applicationlodged for building approval.
56 recreation and natural resources performance against objectivesGleniffer Brae Manor HouseThe stunning architecture, landscape designand historical significance of Gleniffer Braemake it a popular choice for weddings andother activities. It receives high praise forthe service it provides to the community.In order to ensure the remarkable featuresof the house are conserved, along with thesurrounding vista and gardens, a five-yearheritage maintenance schedule is beingimplemented. This year, the <strong>Wollongong</strong>Conservatorium of Music expanded itsoperations into new facilities within thegrounds of Gleniffer Brae. It was alsosuccessful in developing an agreement withBeijing Conservatory Middle School for 50students to study music in <strong>Wollongong</strong>,injecting $1.4 million into the local economyeach year.Auditing of BushfireRisk Management PlanIn December 2002, new legislation wasintroduced into the Rural Fires Act to enablethe auditing of district bushfire riskmanagement plans. Its intention was toprovide a uniformed method for assessingproposed and completed works of landmanagement agencies within each bushfiredistrict. Between November <strong>2003</strong> andJanuary 2004, the <strong>Wollongong</strong> DistrictBushfire Risk Management Plan was auditedby the Hazard Management Unit of the<strong>NSW</strong> Rural Fire Service, as part of theAsset Protection Zone Project.Below: Rod Gibbon, installing the newwater tank at the Discovery Centre.Place Management TrialA two year place management trial hascommenced in Cringila Park and Berkeleyprecincts. The project is proceeding well andmany improvements and partnerships havebeen established with business, governmentand non-government sectors in collaborationwith the community. The followingorganisations are currently involved in theproject: Period Detention, Probation andParole, Aboriginal Men’s Committee, CringilaPublic School, Amnesty International,Southside Winter Festival, Cringila VillageInn, CDEP, Illawarra Landcare, Green Corp,Work for the Dole, <strong>Wollongong</strong> AboriginalAquaculture Corporation, CHAIN, SouthsideSports Expo, Southern Suburbs SafetyTaskforce and Yallah TAFE.Applications for Grant FundingA variety of grant applications forenvironmental improvement projectsmet with success this year, includingEnvirofund grants for the Cawley RoadBushcare project at Towradgi for $11,550and the Wollamai Point project at Berkeleyfor $24,037. A further sum of $13,622 wasalso received for two sites withinthe Towradgi catchment area. Additionally,six habitat corridor sites within Bulli andThirroul catchment areas were able to berestored through a $94,754 grant from theEPA’s Environmental Trust Grant initiative.An application to <strong>Council</strong>’s environmentfund was also submitted, in consultationwith volunteer representatives, to continuerestoration works in natural areas oncommunity land. The affected Bushcaregroups are awaiting the outcome of theirapplication for funding.<strong>Wollongong</strong> Bushfire AssetProtection Zone Management StudyIn late <strong>2003</strong> we received the final report forthe <strong>Wollongong</strong> Bushfire Asset ProtectionZone Risk Management Study. This project,largely located along the urban bushlandinterface throughout the city, assessedbushfire risks according to vegetation type,slope, topography characteristics and bushfirehistory. The study split the 285 kilometreinterface into 45 manageable segments.These were prioritised in regard to their levelof bushfire risk. The report identified thatwe are responsible for the management of15% of the land along the interface. Therecommendations of the study are beingimplemented through the development ofdetailed designs for the four highest prioritysegments. Physical establishment works atthese sites has begun and will be completedin late October 2004.Community Land Hazard ReductionIn <strong>2003</strong>-04, bushfire fuel reduction workswere undertaken at ten sites involving theremoval of weeds, reduction of some groundand elevated shrub fuels, and either pile burnsor in-situ prescribed burns.Bushfire Risk Management Awards<strong>Council</strong> was pleased to receive a HighlyCommended Award at the <strong>2003</strong> Local<strong>Government</strong> Association’s annual environmentawards for our Bushfire Asset Protection ZoneRisk Management Study.Sustainable Vegetation CanopyA total of 2,591 applications were processedthis year, with all requests serviced withinten working days. The reviewed TreeManagement Order was publicly exhibitedduring the year, and will be submitted to<strong>Council</strong> in August 2004.
community and cultural services performance against objectives57community and cultural servicesProgram Goal Our mission is to provide community and culturalservices and facilities that enhance our community’s quality of life.Community and Cultural Services ExpenditureFunctions:Youth Services $0.773mAged and Disabilities Services $2.498mCommunity Development $1.728mCommunity Facilities $2.830mCultural Development $2.728mCommunity and Cultural Services IncomeFunctions:Youth Services $0.228mAged and Disabilities Services $2.181mCommunity Development $0.945mCommunity Facilities $1.517mCultural Development $0.931mYouth ServicesSocial/Community Plan YouthStrategiesThirty strategies were identified for youngpeople in the <strong>Wollongong</strong> Social/CommunityPlan <strong>2003</strong>-07. <strong>Wollongong</strong> Youth Servicesis the principal resource centre and a keystakeholder in thirteen of these strategies.These are either in development, currentlybeing implemented, or already completed.Two such activities were a research initiativethat led to a Youth Disability Access <strong>Report</strong>and the Drop In Project. <strong>Wollongong</strong> YouthServices continues to support and promoteNeighbourhood Youth Work activities,the Deaf Youth Group and Links to Learningcourses for students at risk of leavingschool early, as well as unemployed earlyschool leavers.Youth Services and ProgramsA wide array of activities was delivered toyoung people this year, primarily throughthe <strong>Wollongong</strong> Youth Centre. A total of15,019 people took part in programs,activities and entertainment.Community and Cultural Services Expenditure vs.Total <strong>Council</strong> ExpenditureTotal Community andCultural Servicesexpenditure was$10.557mor 6.05% of total<strong>Council</strong> expenditureCommunity and Cultural Services Income vs.Total <strong>Council</strong> IncomeTotal Community andCultural Servicesincome was$5.802mor 3.31% of total<strong>Council</strong> incomeThis represents a significant increase overthe 12,159 achieved last year, and is directlyattributable to the diverse agenda offered bythe youth centre.A research project, implemented from 31May to 5 June 2004, identified principal usersof the centre and their primary activities.Results showed that a large cross-section ofyoung people access activities from across,and beyond, the local government area. Italso demonstrated that specially targetedprograms are more likely to be successful inincreasing attendances of minority groups.As a result, the number of females visiting thecentre increased, as did attendance of peopleof diverse sexuality.The survey also illustrated that many servicesare being utilised. Of these, the most popularwere the New Performer Night, the DropIn Facility, and various information andreferral services. In all, 86% of respondentswere either ‘very satisfied’ or ‘extremelysatisfied’ with <strong>Wollongong</strong> Youth Services.This represents a substantial increase fromsatisfaction levels recorded the previous year.Youth Week EventsYouth Week activities for 2004 weresuccessfully implemented and evaluated.Events included a youth festival (<strong>Wollongong</strong>);an open day (Helensburgh); forum for youngpeople (Bellambi); skate event (Thirroul);dinner dance (Dapto); Hip Hop event(Crown St Mall); live bands and BBQ (Dapto);break dancing, MC and DJ workshopsand performance (<strong>Wollongong</strong>) andmusic workshops for girls (<strong>Wollongong</strong>).In addition, we conducted a successfulregional art exhibition and drama project.Links to Learning ProgramsTwo Early Leavers’ courses were held insupport of local youth gaining industryrecognised training qualifications. The courseswere instigated in partnership with accreditedtraining providers. The first, a joint venture with<strong>Wollongong</strong> TAFE and Parameadows Schoolfor Specific Purposes, required students tobuild a sensory garden at Parameadows. Thegarden was specifically designed for youngpeople with disabilities, with <strong>Wollongong</strong> TAFEproviding the course trainer and an accreditedcurriculum. The outcome saw two youngpeople enrolling at the Senior’s College, oneyoung person gaining an apprenticeship, andanother attending a horticulture course.Many young people visit the centreto attend drop in programs or touse facilities during drop in hours.In <strong>2003</strong>-04, numbers decreasedby 359 from the previous year,largely due to workplace shortages.The centre was proactive indeveloping programs, activities andentertainment events in <strong>2003</strong>-04.This was evidenced by the largeincrease in participation rates overthe previous two years.
58community and cultural services performance against objectivesThe second program, a ten-week hospitalitycourse, provided eligible participants witha certificate in hospitality. <strong>Wollongong</strong> <strong>City</strong>Employment and Training provided the venue,instructor and accredited training modules.Following the course, five young peoplesuccessfully catered for a large function atthe youth centre, with one of them gainingpart time work and a further twore-entering the education system.Student at Risk ProgramThe Student at Risk program is run withthe assistance of relevant partner schools.During the year, a new male tutor wasemployed and recruitment actioncommenced for a female tutor. An informalmorning tea was also held to provide courseinformation to parents and prospectivestudents. The coordinator of the Links toLearning Program negotiated with partnerschools to conduct interviews with thestudents prior to course commencement.School Holiday ActivitiesThe introduction of craft activities, suchas leather work and stencilling, increasedparticipation rates during the holiday period.A popular musical workshop was alsoincluded in the April school holiday program.Another popular activity was a workshopfor aspiring musicians on succeeding as aperformer. This was presented by Membersof the <strong>Wollongong</strong> Music Round Table andMusicoz, with 60 young people attending thesession.Disability Awareness TrainingDisability awareness training is provided tonew employees, as part of the corporateinduction process. This year, 80 peopleundertook the course presented by Agedand Disability Services and disabled specialisttrainers. Its aim was to raise awareness andto ensure that employees are responsiveto the needs of people with a disability.This interactive training program discussedthe many physical and social barriers thatmay be encountered whilst accessingservices and facilities. Customer feedbackrevealed that 91% of participants ratedthe course as ‘extremely effective’.Management Training for SeniorsThe <strong>Wollongong</strong> Training Service providedtraining to seniors, community groups andother volunteers on Finance for non-FinancialPeople. In addition, Volunteering Illawarrasuccessfully sought funding to run OH&Straining for volunteer groups, includingseniors, and is working to implementaffordable training to meet legislativerequirements.Below: Youth centre activitiesattracted much interest this year.Bottom: Community Serviceshelper Tina Lateo assisting Bill Erwin.Aged andDisability ServicesSeniors Week 2004<strong>Wollongong</strong> Seniors Week 2004comprised the largest number of individualactivities to date, involving over 2,500 people.These included the Lady Mayoresses’afternoon tea dance, several multiculturalluncheons, a handicraft display, aphotography competition and joy flights.Other well-attended activities were busoutings to the tramway museum, wineriesand to watch dolphins along the coastline.Seniors Week also received significantmedia attention. Many seniors attending theevents expressed positive feedback on thecomprehensive program of activities.International Day of AbilitiesA music project was initiated by ourAged and Disability team, in conjunctionwith the South Coast School for Childrenwith Autism. This involved a music therapistrunning 24 music workshops, with aroundeight students in each. The project providedan opportunity for participants to expressand explore their creativity through music.Customer satisfaction ratings found that100% of participants believed the courseranged from good to very good. The projectconcluded with a Lord Mayoral receptionand a celebration held at the school onInternational Day of Abilities.Outlook for 2004-05We are working to provide bestvalue and innovative serviceswithin both our Youth Servicesand Aged and Disabilities Servicesfunctions. For the city’s youngpeople we will again coordinateYouth Week and school holidayprograms, as well as provideactivities for young deaf andhearing impaired people. Inrelation to Aged and DisabilityServices we will continue tocoordinate Seniors Week, and theInternational Day of Abilities event.Another area of focus will bemulticultural access and disabilityawareness training.
community and cultural services performance against objectives59Multicultural Access ProjectThe completion of a report into themulticultural access project provided a rangeof recommendations to the Departmentof Ageing, Disability and Home Care.These included the need to investigate theestablishment of a Multicultural Neighbour AidService and the provision of administrationsupport, information and volunteering trainingand recruitment strategies for Culturallyand Linguistically Diverse (CALD) Day Carefacilities. As a result, a venue access auditwas completed, and food development,community transport and HACC awarenessresource projects initiated in response toidentified needs.Transport Services OperationsCommunity Transport Services providesa wide range of transport options with allservices operating at over 80% capacity,slightly ahead of our performance target.In all, 56,958 trips were made this year,carrying 20,297 individuals. A comparisonwith the previous year’s results shows an18% increase in passenger numbers,a trend likely to continue into the future.Customer Satisfaction withCommunity Transport ServicesCustomer satisfaction levels for CommunityTransport Services are measured throughan evaluation of specific projects, along withcustomer surveys of both individual andgroup clients. An overall assessment is alsomade in March each year. Results for <strong>2003</strong>-04showed that 91% of clients indicated that theservices provided by the team were ‘good’to ‘very good’.Northern SuburbsIndividual Transport BusAn evaluation was undertaken of the newNorthern Suburbs Individual Transport Busto measure the ongoing sustainability of theservice following a six month trial.Of the people surveyed, 90% of respondentswere very satisfied with the new service.Its popularity is not only due to its comfortbut also because it offers a cheaper optionthan individual car transport.The increase in trips for <strong>2003</strong>-04is directly related to greaterlevels of access to the serviceby members of our Aboriginalcommunity.Demand for home respite careis reducing, due to an expandingrange of support services in<strong>Wollongong</strong> for people who sufferwith dementia.Respite Services OperationsRespite Services continue to provide bothin-home and centre based services to thecommunity. All respite services are operatingat over 80% capacity, a decrease fromprevious years and due to the greaternumber of choices available to assistcarers of people with dementia. Day careservices, however, are running at fullcapacity, with waiting lists for service.Operating Neighbour Aid ServiceThe Neighbour Aid Service is operating atover 80% capacity in its first full year ofoperation, and was recently grantedadditional funds to increase service capacity.Community DevelopmentAccess and Equityin Service ProvisionImplementation of the Cultural AwarenessTraining Program continued, with all newemployees participating through the corporateinduction process, in addition to presentingthe program to external clients. In all, tensessions were provided to 130 participants, ofthese, 64 were <strong>Council</strong> employees. Feedbackfrom the sessions revealed 88% customersatisfaction levels.Advocacy and EmpowermentThis year, the Illawarra NACBCS (NationalAssociation of Community Based Children’sServices) highlighted the issues of advocacyand empowerment. Two Special Justices inChildren’s Services evenings were held,with a focus on child care regulations inpractice, and advocacy in children’sservices on a practical level. The sessionswere attended by 35 practitioners fromacross the Children’s Services sector.Grandparents Forum/ExpoIn association with the Illawarra Area HealthService, a Grandparents Forum/Expo washeld for 80 participants in the <strong>Wollongong</strong>Town Hall. The emphasis was on advisinggrandparents on the topics of safety, childdevelopment, nutrition, health, legalities andrelaxation techniques.Outlook for 2004-05Particular attention will begiven to coordinatingcommunity-based activitiescelebrating and promotingNAIDOC Week, ReconciliationWeek, Refugee Week, Children’sWeek and Community HarmonyDay. We will also continue toimplement the objectives of theCrime Prevention Policy, theGraffiti Operational ManagementPilot Project and the CommunitySafety Compact Project, aswell as work to expand our ownInterpreter Service.In addition, an Aboriginal Grandparent’s Expowas held at the Aboriginal Cultural Centrein Kenny Street, <strong>Wollongong</strong>. The eventengaged 25 people on topics centering on theAboriginal community’s request for informationon legal issues, and accessing Centrelink andthe Department of Community Services.Language Aid ProgramThe Language Aid Program was accessedon 19 occasions this year, a significant dropfrom the 50 requests received in 2002-03.Development of data collection methodologyto ensure more accurate representations ofusage rates continues. The program was alsoextended to include an Interpreter ServicesProgram covering 27 different languages.Children’s Week EventThe second <strong>Annual</strong> Children’s Week eventtook place at the <strong>Wollongong</strong> Botanic Gardenwith free activities to promote the concept offamilies enjoying time together. Entitled TheKids Garden Groove, the event attractedover 1,000 people, significantly more thanthe previous year. Face painting, juggling,kite making, a Harry Potter tent, Africandrumming, and the botanic garden’s Artistin Residence exhibit were among the rangeof activities on offer. The event also featureddramatic and musical performances.4th NACBCS Biennial ConferenceThe highlight for NACBCS was atwo-day conference held at the Universityof <strong>Wollongong</strong>. The event attracted 170delegates to hear speakers the calibre ofGeraldine Doogue, Jane Woodruff (UnitingCare Burnside), Moira Raynor (HumanRights Commission WA), and Paul Prichard(Good Beginnings Australia). The conferenceculminated with a plan to campaign againstthe loss of the 1:4 staff to child ratio forchildren under two years at child care centresacross <strong>NSW</strong>. The lobbying campaign hassince commenced on behalf of Children’sServices Regulations.Purple Ribbon MonthThe annual Purple Ribbon Month Campaignis designed to raise community awareness onthe issue of child abuse and is coordinatedby our Children and Family Services team, incollaboration with several community groups.The month-long activities included severalinformation stalls located in local shoppingcentres, an art exhibition, a family disco and50’s Rock and Roll night. Purple Ribbonswere distributed through local businesses andcommunity organisations.Crime Prevention ThroughEnvironmental DesignWe continue to apply the principles of CrimePrevention Through Environmental Design(CPTED) to development applications. Theproject not only makes assessments onmajor private and public developmentswithin the region, but also contributes tothe establishment of CPTED guidelines andstandard conditions for developers. In all, 68development applications were assessedagainst CPTED principles this year.
60community and cultural services performance against objectivesLinks to Aboriginal andTorres Strait Islander CommunityAccess and equity issues continue tobe addressed through involvement andsponsorship of NAIDOC Week, ReconciliationWeek, Seniors Week, Youth Week,International Women’s Day and othercommunity events as requested.Inaugural Jumballa DirectoryA significant project that involved a varietyof community members, including localAboriginal Elders and children, was thedevelopment of an inaugural Aboriginal andTorres Strait Islander Services Directory,Jumbulla. The directory is not just a sourceof information for residents and workers,but also a photo journal of local people andplaces, including stories and statementsfrom Aboriginal leaders. The project wasmade possible through the involvement andcontribution of the local Aboriginal and TorresStrait Islander community.Training Service PartnershipA training service was developed over the last12 months, as a partnership between <strong>Council</strong>and Volunteering Illawarra. Two six-monthcalendars were produced that offered avariety of affordable training for the communityservices sector. The team also offered 12specialised training sessions, receivingbetween 80%-90% satisfaction ratings.Below: Members of the Kemblawarra Aboriginalcommunity who were involved in the productionof the new Jumbulla directory. Photo showsCoral Pombo with Kolby Langlo, SuhrayaThomas and Tamara Thomas.Effective Consultation Protocols for<strong>Council</strong> and ATSIOur objective of strengthening links withthe Aboriginal and Torres Strait Islander(ATSI) community was achieved throughinvolvement on the Illawarra IndigenousCommunity Based Working Group andAboriginal Interagency. The vision statementof this group is to ‘nurture culturally sensitivegovernment services through a partnershipapproach that respects the uniqueness,authority and integrity of the indigenousAustralian Peoples of the Illawarra’. The groupprovides an opportunity for governmentagencies to consult directly with communityrepresentatives on any issue.Social and Community Plan <strong>2003</strong>-07Social and community plan strategiescontinue to be effected. A major socialresearch project was initiated to gatheradditional data to support existing projectsand future programs. This required anextensive consultation process to engage over3,000 people between the ages of 3 to 93living in various suburbs throughout the city.Support was also provided to the Port KemblaRevitalisation Review Process, the BerkeleyStrategic Planning Project and the West DaptoMaster Planning Process.Customer Satisfaction Levelof Service ProvidersThe Community Development Teamimplemented a customer satisfaction surveyin 2004 that also incorporated Aboriginalservices. From the 630 surveys distributed, 65responses were received. The results showedthat 82% of customers believed that theirexpectations were being met and 85% weresatisfied with the service. This was well aboveour performance indicator of 70% customersatisfaction. However, the following issueswere raised: insufficient communication, a lackof understanding and little awareness of staffand their roles. The business planning processwill incorporate strategies to address theseparticular concerns in 2004-05.Local <strong>Government</strong> AboriginalNetwork ConferenceThe 16th <strong>Annual</strong> <strong>NSW</strong> Local <strong>Government</strong>Aboriginal Network Conference: Talkin’ upMovin’ on was held in <strong>Wollongong</strong> from 22-24October <strong>2003</strong>. There were 300 delegates inattendance from around the state.Volunteering IllawarraVolunteering Illawarra has maintained itsgrowth, especially in referring local residentsto volunteering opportunities. In May 2004, anew outreach service commenced, providingvolunteer interviews for residents of theShellharbour area. During the year, 270residents attended information sessions tofind out about the program. In all, VolunteeringIllawarra placed 612 new volunteers with local‘not for profit’ organisations, with followupsessions a month later recording 85%satisfaction with the referral service provided.A total of 78 local organisations are nowmembers, an increase of 21 from the previousyear. Feedback from the annual survey wasencouraging with satisfaction ratings inexcess of 90%.Volunteer Training SessionsDuring <strong>2003</strong>-04, the service provided 42training sessions in 22 different locationsin <strong>Wollongong</strong>, Shellharbour, Kiama andthe Shoalhaven. A total of 221.5 hoursof subsidised training was held for 569participants. This was comprised of 345volunteers and committee members, and 224staff members. Satisfaction rates with trainingwere maintained at 85%.Social Planning SupportOur Social Planning team continues torespond to social planning information andsupport requests with 80 responses providedthis year, 46 of these to external organisations.Several documents were updated anddistributed including Demographic,Community, Indigenous Peoples and OlderPersons profiles. In response to requestsfor suburb-specific information, 14 socialindicator profiles were developed anddistributed. A survey of 12 customers foundthat all were satisfied with the service, qualityand response time provided.
community and cultural services performance against objectives61Social Crime Prevention StrategiesThe range of funded projects for <strong>2003</strong>-04included the Port Kembla Community SafetyProject, Wentworth Street Refurbishment- Living Centres Project, Illawarra AreaAssistance Scheme - Aboriginal LiaisonOfficer, and Festivals Australia - Warrawong:What a Place Project. Partnerships withmajor community stakeholders to coordinateand integrate other safety initiatives includedSouthern Suburbs Safety Taskforce, IllawarraCommittee against Domestic Violence, DrugAction Information Exchange and the SafeCommunity Action Team Committee (SCAT).Major achievements were the opening ofDarcy House, Port Kembla, and hosting of theIllawarra Forum on Alcohol Abuse.Community Safety PlanThe Community Safety Plan was completedwith all major objectives successfullyimplemented. These were communityeducation sessions, increased policepresence, and such community events as thePort Kembla Christmas Carnivale.Below: Painting classes at theDapto Ribbonwood Centre.Safety and Securityat Community FacilitiesTwo key strategies were identified forimplementation this year. These were toundertake regular asset inspections atall community facilities and to providemanagement training. The first involvedweekly asset inspections at all seven facilitiesmanaged directly by <strong>Council</strong> and quarterlyasset inspections completed for 91% of allcommunity-run facilities. All risks identifiedduring the inspections were actionedappropriately. A range of topics were selectedfor the training program including facilitymanagement, personal safety, venue cleaning,OH&S requirements, managing contracts,site induction and risk assessment, safe workmethod statements and reporting techniques.License Renewal ProcessesAs licenses at a number of centres haveexpired, we have decided to ensure thatall licensees are meeting the conditions foruse and management of the facilities beforelicenses are renewed. In cases where weprovide a financial contribution to the licensee,a detailed independent financial audit will beundertaken as part of the investigation.Facility Maintenance ProgramSeveral projects were undertaken to improveexisting community facilities, including worksat Cringila Community Hall to provide fullaccess to people with a disability. Otherprojects incorporated a new audio systemand stage lighting for the <strong>Wollongong</strong> TownHall; and new furniture for Coalcliff CommunityHall, West Dapto Neighbourhood Centre,Kemblawarra Community Hall and FairyMeadow Community Centre. Followingselection of suitable colour schemes, FigtreeCommunity Hall, Warrawong Children’sHouse, Koonawarra Community Centre,Berkeley Neighbourhood Centre andUnanderra Community Centre were repainted.Facility Management SystemsShared use of facilities by community groupsis encouraged to gain maximum value for thecommunity. Unfortunately, there are timeswhen agreements regarding shared use breakdown. This occurred at four different centresthis year. All parties were brought togetherand, through negotiation and mediation,amicable outcomes were reached at threecentres. Work continues with the parties atthe fourth centre.Community FacilitiesMulti Purpose Community FacilitiesIt is our policy to transfer management ofcommunity facilities to local groups underlicence agreements. When a facility becomesavailable, allocation is through an advertisingand selection process. Five centres wereadvertised this year. Of these, Fairy MeadowCommunity Centre management wastransferred to a local group, with training andsupport provided in setting up administrativesystems. The allocation process is stillunderway for two centres, with an outcomeexpected early next year and, as no interestwas received for the remaining centres, wewill continue to run these. Management ofa senior citizens centre was also transferredback to <strong>Council</strong>. The management model foreach centre is constantly monitored to ensureit remains accessible to local communities.Dapto Ribbonwood CentreUtilisation of Dapto Ribbonwood Centrecontinues to increase. Highlights for the yearincluded 4,663 bookings by over 280 differentgroups, along with 122,902 library visits and140 families using the child care centre. Twonew church groups were also established andthese now meet at the centre on Sundays. Inaddition, Illawarra Area Health started a newparenting group that is well attended andplaygroups have expanded to six per week.Other new bookings were an exercise group,Illawarra Suzuki Group, National Taekido andthe Italian Social Welfare Organisation.New Community Services FacilityA feasibility study in the <strong>Wollongong</strong> CBDidentified models for a new communityservices facility. Three options were identifiedbut require further analysis on financial issues,location, tenants and user groups.Outlook for 2004-05Thirroul District Library andCommunity Centre will be a majorproject for the coming year. Othersare the development of CorrimalPensioners Centre and HorsleyChild Care Centre. We will alsowork to implement the DisabilityDiscrimination Act action plan forcommunity facilities. In CulturalServices, we will work towards thedevelopment of a cultural precinctand a centre for contemporaryculture for <strong>Wollongong</strong>. Culturalindustry development will befacilitated through industrynetworks, projects and fundingopportunities.
62community and cultural services performance against objectivesAboriginal Cultural CentreNegotiations continue with the key occupantgroup of the Kemblawarra Community Hallregarding proposed licensing of the hall.Under the terms of the licence, the groupwould be responsible for the management ofthis facility. Work on the concept brief for thenew centre will commence as soon as thelicence is finalised.Thirroul Community Centreand LibraryEarly in the year, <strong>Council</strong> was approachedby a developer regarding options for thecommercial development of land adjacent tothe proposed Thirroul Community Centre andLibrary site. As a result, work on the projectwas delayed while discussions took place withthe developer. However, their interest in thejoint venture was subsequently withdrawn andwork recommenced on the concept plans. InJune 2004, a consultant on environmentallysustainable development was engaged towork with the project team on the conceptdevelopment and design phase.Below: Graffiti art mural, painted by youngpeople at the <strong>Wollongong</strong> Youth Centre.Promoting Community FacilitiesEarly in the year, information was collectedon activities organised by current users ofcommunity facilities. This was subsequentlypromoted in five local shopping centresto raise local awareness of the types ofcommunity facilities available within eacharea, booking procedures and the programscurrently run from these centres.Cultural DevelopmentA New Cultural Plan for <strong>Wollongong</strong>With the 1998-<strong>2003</strong> Cultural Plan coming toan end, a new plan is to be commissionedcommencing in 2005. Recently, the<strong>NSW</strong> Ministry for the Arts provided newguidelines for local government to assist inthe development of the plans. These arenow required as part of the <strong>NSW</strong> Local<strong>Government</strong> Act, 1993.Partnerships withPeak Cultural GroupsVarious levels of support, funding andresources were provided to peak culturalgroups such as Project ContemporaryArtspace; Illawarra Craft and Art Network; FilmIllawarra; Art Arena Gallery; Circus Monoxide;Circus WOW; Illawarra Writers Centre; ShortSited Film Festival; Critical Mass TheatreCompany and Performance Illawarra.Developing Cultural IndustriesThe community survey conducted by IRISResearch in <strong>2003</strong> revealed that 85% of thelocal community believe that a vibrant anddiverse cultural life is important for the city.Cultural Services is advocating thisoutcome by incorporating cultural aspectsinto the city centre’s revitalisation project,producing a feasibility study for a multimedia,arts and design centre for <strong>Wollongong</strong>, andassessing strategies for the recommissioningof Bridge Street Theatre and Bellambi Depot.A further initiative was the relocation ofDuckprint Fine Art Press to Port Kembla.These clusters will promote skills improvementand the ongoing viability for local culturalindustries.Cultural Development ProjectsOur Cultural Services section worked inpartnership with 783 organisations oncommunity cultural development projects.Over $168,000 in funding was generatedfrom government and corporate sources toundertake such projects as: Coomaditchie:Stop and Think Mural; Warrawong: What aPlace Youth Video Project; Berkeley YouthVideo Project: Rampage; <strong>Wollongong</strong> StreetTheatre Project, Illawarra Regional YouthStrategy, SPARX Magazine and the HoodzYouth in Public Space Project.Small Grants ProgramOf the 42 applications received in <strong>2003</strong>-04,24 were successful in receiving grant funding.The Small Grants Program distributed$30,000 in funding for cultural developmentprojects that either assisted emerging artistsor fostered local identity.Promoting Local HeritageFunding was received to employ a<strong>Wollongong</strong> Museum Strategy Officerfor three years for 2004-07. The officerwill work closely with local museums todevelop a strategic approach to the localheritage sector. We also provided inputinto the Museum Heritage Project thatspecifically worked with the local migrantcommunity, the <strong>Wollongong</strong> Museum andBulli Miners Cottage.Place Making and Public Art ProjectsThree place-making projects are being appliedin local neighbourhoods, involving artistsworking directly with diverse communitygroups to express their sense of connectionand identity. The projects consist of stainlesssteel banners and mosaic pavement insertsin Wentworth Street, Port Kembla; a placeof healing and wellbeing in Hooka Park,Berkeley; and the Bellambi Safe StreetsProject, in partnership with the Department ofHousing and Bellambi Neighbourhood Centre.In addition, the Osborne Park Songlines,Merrigong - Mt Keira, and the Coomaditchiemural were all significant public art projectsfor the city. The public art conservation planis being monitored by the Works Division toascertain the annual cost of maintenance forthe city’s public art.The total number of communitycentres include community/neighbourhood centres, seniorcitizens’ centres, youth centresand halls.Even with the slight decreasein this year’s result, the centresare attracting a growing numberof users.This graph shows the averagenumber of visitors for eachcommunity centre. The trendcorrelates with the total usagefigures on the previous graph.Funding provision in the SmallGrants Program has remained atthe same level for the last threeyears and demonstrates <strong>Council</strong>’scommitment in supporting localcultural groups.Viva La Gong FestivalViva la Gong is a highly successful culturalfestival that showcases the city as a placeof creativity and innovation. This year, itlinked with the <strong>2003</strong> Rugby World Cup, topresent a 16 day program that emergedas a signature event for <strong>Wollongong</strong>. Thefestival hosted three free spectaculars in thecity centre and promoted 51 events and 14exhibitions. Some 768 artists were employed,and the work of 120 local artists was exhibitedin 90 businesses during the Viva Art Trail. Vivala Gong diversified our economy and attractedwidespread community participation. In all,52,000 people attended the events, 23% ofwhich were visitors to the region. Of these,63% spent in excess of $50 per person,per day.
library services performance against objectives63library servicesProgram Goal Provide quality public library services, programsand resources to best meet the recreational, informational,educational and cultural needs of our community.Library Services ExpenditureFunctions:Library $0.042mCommunity Information $5.576mLibrary Services IncomeFunctions:Library $0.004mCommunity Information $0.778mLibraryNew CollectionsThe library is constantly reviewing thematerial it provides in response to customerneeds. A number of new collections wereadded to the central and district librariesthis year. These included a DVD collectionavailable from <strong>Wollongong</strong>, Dapto andCorrimal district libraries and a trial collectionof CD ROMs at Dapto library. A graphic noveland comics collection was also introducedto Corrimal and <strong>Wollongong</strong> libraries, as partof a children and youth services strategyto encourage young people to use theirlocal library. All collections are proving to bevery popular with library patrons and enjoyconsistently high usage levels.Reference EnquiriesAssessments are carried out on a regularbasis to determine the number, type and levelof enquiries handled by reference staff. Atwo-week sample period is surveyed fourtimes per year to identify seasonal trends.Library Services Expenditure vs.Total <strong>Council</strong> ExpenditureLibrary Services Income vs.Total <strong>Council</strong> IncomeTotal Library Servicesexpenditure was$5.618mor 3.22% of total<strong>Council</strong> expenditureTotal Library Servicesincome was$0.782mor 0.45% of total<strong>Council</strong> incomeThis research shows that, while an increasingnumber of customers are accessing the libraryremotely through the catalogue or databases,the main method of contact still remainspersonal visits to the library, followed bytelephone enquiries. Demographically, moreadults are served than students or children.There is also a continuing positive trend in thenumber of enquiries handled by staff.Collection Management PlanOur staff recently completed a collectionmanagement plan for the selection oflibrary materials. This project will facilitatea structured approach to the selection ofresources to meet identified communityneeds, as well as identifying the processesinvolved in the use, evaluation andmaintenance of appropriate collections. Theplan will also provide a reference point for newstaff to make informed decisions, even duringperiods of high staff turnover. We are planningto conduct a major review every three yearsto ensure the plan’s ongoing relevance tomeeting community needs.Display FacilitiesThe Central Lending Library continuesto encourage community groups to usethe available display facilities. Groups takingadvantage of this opportunity includedWires, <strong>Wollongong</strong> Camera Club, IllawarraWoodworkers, Embroiderers Guild, CamelliaIllawarra and the <strong>Wollongong</strong> Doll Club.Each community group display is highlightedby items from the library’s own collections,to encourage customers to borrowmaterials on related subjects. This crosspromotionalactivity benefits both thespecial interest groups, as well asour library service.The central library also organised displaysof library resources to coincide with specialevents such as Harmony Day, NAIDOC,Law Week, Library and InformationWeek, Drug Awareness Week, and Local<strong>Government</strong> Week. Again, resourcesrelating to these activities were placed ondisplay, along with brochures, posters andother promotional materials. These wererun in association with a permanentdisplay featuring the Legal InformationAccess Centre collection from the StateLibrary of <strong>NSW</strong>.Promoting Library CollectionsSubject areas within the library’s owncollections are periodically featured forpromotion to patrons. This year’s displaythemes showcased a disparate range ofsubject matter, the highlights of which wereBoys and their Toys, Winter Warmers,Garden Harvest and Crime – the Good,the Bad and the Evil.The Reference Section also held variousdisplays depicting information in the formof maps, plans and reports from <strong>Council</strong> forcommunity comment. One such exhibit wasthe Draft Illawarra Escarpment ManagementPlan. Materials were also displayed fromother government authorities, includingthe preferred option for the reconstructionof Lawrence Hargrave Drive on behalf ofthe RTA, and new suburb names for theGeographic Names Board.
64library services performance against objectivesCentral Library RevitalisationIn <strong>2003</strong>-04, the library developed strategiesto increase the use of the non-fictioncollections. The outcome saw theamalgamation of the junior and adultnon-fiction collections in February 2004. Thisreversed a prior decision in 2002, to separatethese two areas with the aim of encouraginghigher usage levels of the junior non-fictionby younger borrowers. This initiative hadproven to be successful at the Dapto regionallibrary, and library personnel was keen toimplement this arrangement within the centrallibrary. Unfortunately, the outcome was notwhat was expected and loan statistics fellnoticeably. The re-amalgamation of the nonfictionmaterial was a large undertaking thatalso provided an opportunity to transposethe arrangement of the collection into astandard left to right layout.Both initiatives were very popular with ourpatrons, with many positive commentsreceived. In addition, the general ambiance ofthe library is much more open and accessible.Local Photographic CollectionIn March 2004, the library embarked on acollaboration with Picture Australia to increaseaccess to its collection of 15,000 digitisedlocal photographs. This internet service,run by the National Library of Australia, linkstogether the photographic collections of manyAustralian libraries via one website. Adding theIllawarra Images photographic collection tothe already large database meant thatPicture Australia was able to achieve itsgoal of having over 1,000,000 photographsaccessible via its website.Below: Christine Wales, one of our skilled librarystaff, uploading information onto the Weblinks site.At the same time, use of our own localphotographic collection has increased, asPicture Australia users are able to link directlyto the Illawarra Images database.Bundaleer ProjectThis joint initiative with the <strong>NSW</strong> Departmentof Housing provides weekly pre-school storytime sessions on the streets of the BundaleerHousing Estate. The objective is to introducebooks and reading to pre-schoolers and theirparents, who are not traditional library users.Summer Reading ClubThe Summer Reading Club commencesin December each year and runs foreight weeks. This year’s event was highlysuccessful, attracting 1,100 children. Thereading club encourages children to read anyitems from the library’s vast collection and totrack their progress through a logbook. Eachchild is eligible to enter into the lucky draw forevery five books read. A presentation eveningis held at the end of the program, where theprizes are drawn and every child who has reada minimum of five books is presented with aparticipation certificate.Born to ReadThis innovative program targets parentswith infants between six months and twoyears of age. Activities include reading,rhymes, songs and finger plays, followed bya play session. The group is limited to tenfamilies at any one time and is a popularmethod of introducing very young childrento the joys of books and libraries.Thirroul District Libraryand Community CentreThe facility is in the concept design phase,with the project team working to developdesign concepts, in association with acontracted architect firm. When finalised,the design options will go on display forpublic comment. A project brief was alsodrafted for a specialist in environmentallysustainable development to be engagedto guide and monitor the design process,and to ensure the project achieves the highperformance requirements for environmentallyfriendly buildings.The percentage of communitymembers who are libraryborrowers has remained stable forthe past five years.While a small increase was evidentin library membership compared tothe previous year, from an overallperspective, the numbers remainrelatively stable.The graph comprises total visitsto the central, branch and mobilelibraries. Visitation levels continueto drop, mainly due to a noticeablereduction in branch library visits.Although the total loans for<strong>2003</strong>-04 were slightly belowthe previous year, they remainrelatively stable.The number of visits to thecentral library increased this year,reversing a downward trend, andindicating that new strategiesrecently put in place are working.The downward trend in branchlibrary visitation continues. Thisis partially offset by increasedvisits to the central library and viaWeblinks access.
library services performance against objectives65Supply of Library MaterialsThe Technical Services Section is responsiblefor processing books and other materialsprior to them being made available to librarypatrons. As such, the section’s productivitydirectly affects the library’s ability to achieveits objectives. A total of 50,560 new itemswere added to the library collections in<strong>2003</strong>-04, including 17,000 serials. Growthwas particularly significant in the junior lendingcollection, where total items increased to9,000 – some 2,000 more than the previousyear. The materials received were processedand on the shelf, on average, within 22 days.Serials were available within one to sevendays. New developments in automation,including electronic ordering services anddownloading catalogue records, haveincreased efficiencies in this area. In relationto the latter, less than 14% of non-fiction itemsnow require original cataloguing by staff.Services to Remote CustomersWith increasingly fast internet access, a newbreed of user is finding their way into thelibrary. These customers use our website tomake requests for assistance and access thecatalogue to locate library material of interest.A total of 127,000 virtual library visits wererecorded in <strong>2003</strong>-04. This is equivalent to theannual visitation figures for a district library.Our most accessed sites were the Weblinksdatabase of quality websites, local informationpages and the Community InformationDirectory. Over 60,000 people used the webto log into our catalogue, thereby providing24-hour customer access to this service.Community InformationInformation at Your FingertipsThe Community Information Service (CIS) isavailable through the reference library.It provides quick access to information aboutessential services within the local area. Thedirectory lists community groups, consumerand educational organisations, health andsocial service agencies, and religious,recreational and cultural institutions.THE CIS directory is available in both hardcopy and on the web. Individual LocalInfopages on our website also provide localcommunity information, including electedofficials, suburb demographics and details oflocal schools.The Community Information Service waswidely promoted during the year throughadvertising and articles in local newspapers,promotional posters in branch libraries and bydirect marketing to individual organisations.As a result, hits on our website jumped from26,931 in 2002-03 to 40,952 this year.Outlook for 2004-05Our library services will seekto maximise use of technologyresources and the library’s vastcollections. The emphasis onpromoting the joys of reading toyoung children will continuethrough the implementation of suchinnovative programs as the Bornto Read and Summer Reading Clubactivities.The development of the ThirroulDistrict Library and CommunityCentre will be a key task, as wellas feasibility investigations intothe relocation of Helensburgh andUnanderra branch libraries.The year will also see an upgradeof library management systems,and associated technologies, in linewith best practice principles.Above: Marisa Vernonviewing the DVDcollection catalogue.New titles are madeavailable on a daily basisin this ever-expandingcollection.The number of reference enquiriesreceived at the central and branchlibraries is slightly higher than thepreceding four year period.Information requests are comprisedof community informationenquiries, website and Weblinksvisits. Levels have droppedafter the initial interest in newtechnologies (website) subsided.Total visits to the Weblinks sitedecreased from the previousyear. Again, this was dueto interest levels subsidingfollowing the initial surge ofinterest in the new technology.The number of enquiries made tothe CIS has decreased this year.However, the drop is only slightlybelow the previous two years andis offset by increased visits to theCIS website.This represents a large increasefrom last year, and the highest levelrecorded to date. This is due to theconvenience and ease of accessto the required information viathe CIS website.
66 organisational services performance against objectivesorganisational servicesProgram Goal Assist in the delivery of quality services to thecommunity by providing effective support and management servicesfor the organisation.Organisational Support ExpenditureFunctions:Administration $3.767mFinancial Management $15.910mHuman Resources $8.097mInformation Technology $4.405mLand Information $0.667mLegal and Risk $7.326mMarketing $3.059mOrganisational Support IncomeFunctions:Administration $0.109mFinancial Management $103.890mHuman Resources $0.325mInformation Technology $0.022mLand Information $0.010mLegal and Risk $1.871mMarketing $1.645mAdministrationCost Effective VoiceCommunication SystemsOur communication services continueto be provided by Telstra, in accordancewith a contract entered into in May 2002.We monitor our accounts on a regularbasis to ensure charges are leviedcorrectly and liaise with Telstra, and othertelecommunication providers, to supplya reliable and efficient telephone service.Efficient Distributionof Incoming CorrespondenceWe currently have a policy that allcorrespondence is registered anddistributed to staff for processing within 24hours of receipt. Over the last twelve months,an average of less than one item per dayrequired scrutiny, thereby delaying delivery.This is considered acceptable, given thatan average of 87 letters were received forregistration each day.Organisational Support Expenditure vs.Total <strong>Council</strong> ExpenditureOrganisational Support Income vs.Total <strong>Council</strong> IncomeSupport Servicesto Neighbourhood CommitteesStenographic support services areprovided to all neighbourhoodcommittees and indications are thatresponse times to requests have improved.Additionally, two workshops, involvingsenior staff and neighbourhoodcommittee representatives, were heldover the last twelve months to discussmatters of interest and concern.Legal And RiskTotal OrganisationalServices expenditurewas $43.231mor 24.76% of total<strong>Council</strong> expenditureTotal OrganisationalServices income was$107.872mor 61.46% of total<strong>Council</strong> incomeProvision of Legal ServicesProfessional legal services involve theapplication of high standards of expertknowledge by practitioners of different areasof the law. One firm of legal practitionerscannot be expected to provide all our legalrequirements. The merger of Peedoms, ourlong-term provider, with Kells the Lawyers,has permitted us to secure a broaderselection of legal services.Notwithstanding this, it is necessary tomaintain flexibility in securing legal servicesby engaging practitioners who can exhibitthe requisite level of legal competence.In <strong>2003</strong>-04, in addition to Kells the Lawyers,we drew on the expertise of a range ofother providers, including legal counsel.Management of RisksUnder section 382 of the Local<strong>Government</strong> Act, 1993, we are requiredto secure appropriate public and professionalliability insurance coverage. We pursue apolicy of risk management based on thepremise that, if it can demonstrate toour underwriters, effective managementof risks to people and to property(measured in reductions in the numberand severity of injuries/losses), the costof claims settlements and renewalpremiums will be minimised.Insurance Coverage RenewalOur insurance coverage for 2004-05 wasrenewed on 31 May 2004. Notwithstandingthat the renewal occurred in a difficultmarketplace, the insurance brokers, HeathLambert Group, secured insurance renewalswith improved terms and conditions at lowerpremium cost to <strong>2003</strong>-04 and within budgetprovisions for this expenditure item.Items Included and Excludedfor Insurance CoverageInsurance coverage is secured for industrialspecial risks (property), computer breakdown,boiler explosion, inland transit, general andproducts liability, councillors and officers,motor vehicle fleet, corporate travel, crime(fidelity guarantee), principal controlled liability,marine hull, excess employers’ liability andstatutory liability. The liability of authorisedbuskers within the mall was included withinour coverage for the first time.Areas not covered are E-commerce risks(other than employee theft), credit insurance,contract works, contract bonds, confiscationand expropriation, employee benefits, fullterrorism cover and loss of payroll.
organisational services performance against objectives 67Property CoverageCoverage is affected under the ISR policyof insurance for damage and or loss due toperils, including flooding, for our buildings,contents and appurtenances; swimmingpools; artwork, sculptures and monuments;heritage furniture and antiques; and someitems of infrastructure. The policy also coversloss of cash, whilst in the care of <strong>Council</strong>(administration building only), accidentaldamage, fusion (electric motors, generators,etc) plus removal of debris, all glass, finesor damages, theft of property in the open,computers (theft and damage), printingequipment, boilers (pressure vessels), librarybooks and electronic materials, playgroundequipment (theft and damage), claimspreparation costs, loss of gross rentals andgross revenue, costs of reinstatement, andother additional expenditure.This arrangement has worked well over thelast four years and provides an opportunityfor expenditure savings if our initiatives reducethe damage or theft costs to the vehicle fleetbelow the specified amount.Coverage for Affiliated BodiesDuring <strong>2003</strong>, our insurance brokers wereintroduced to the management of IPAC,<strong>Wollongong</strong> <strong>City</strong> Gallery and the <strong>Wollongong</strong><strong>City</strong> Centre, in order to ascertain a clearunderstanding of their insurance needs andto secure the required insurance coverageeither separately or as an extension of ourown coverage. As a result, our property,general liability, crime fidelity guarantee,boiler explosion and motor fleet coverageswere extended to these organisations. Theinsurance broker negotiated the remainingcoverages separately for each organisation.In relation to the former, this resulted inthe inspection of all leased properties.The issue of rock pools necessitated areport on the maintenance and futureretention of tidal pools, with a resolutionthat some rock pools should be removed.Additionally, our program continued inproviding safety signage at the entrancesof tidal pools, along with the installation ofhandrails on the seaward side walls of anumber of exposed pools.Replacing the FigCAPS SystemThe FigCAPS computer software programwas originally developed by Figtree Systems,in conjunction with <strong>Council</strong>, and subsequentlyadopted by local government and otherindustries to record and manage risks.However, the FigCAPS software is no longerbeing maintained by Figtree Systems.COST OF LEGAL SERVICES 2002-03 <strong>2003</strong>-04Peedoms/Kells (general advice) $482,654 $360,643McCabe Terrill (claims defence) $153,954 $169,779Clayton Utz (specialist advice) $91,454 $168,886Maddocks (specialist advice) $4,811 NilKearns & Garside (Sandon Point) Nil $5,801Marsdens (specialist advice) Nil $3,525Phillips Fox (Planning) Nil $48,327Barristers $60,673 $35,075Totals $793,546 $792,036The acquisition of additional propertythroughout the year and revised valuationsof existing property resulted in a 6%increase in the amount of coverage required.However, our property risk underwriterrenewed the coverage with a 14%reduction of the insurance rate andre-introduced limited flood cover, whilemaintaining all other conditions of cover,including $20,000 excess.Motor Vehicle Insurance Coverage<strong>Council</strong> retains the responsibility of payinglosses (damage and theft) to a maximumof $245,000, net of individual loss excessesof $1,000 ($2,500 for theft). If lossesexceed this amount, any further costsare borne by our insurer.Corporate AssetProtection System (CAPS)The Corporate Asset Protection System(CAPS) involves the identification andtreatment of risks that have the potentialto result in personal injury or damage and,therefore, impose financial and other costs tothe organisation. Work continues on reducingthe value of risks to the organisation.Identifying and Treating RisksRisks are identified by strategic, informal andformal methods. Once identified, they areevaluated and prioritised to permit treatmentof risks. In <strong>2003</strong>-04, key performanceindicators for this area were leasedproperties and tidal rock pools.Above left: Stenographer Judy Maxwellfrom our Administration and InformationTechnology Division.Above middle: Jason Hall, Legal and Risk,conducting a risk assessment at theContinental Pool, <strong>Wollongong</strong>.As a result, it is now difficult to use. We areproceeding to secure new human resourcemanagement software that is expected toidentify opportunities for further reductions inthe value of our risks.Civil Liabilities LegislationThe <strong>NSW</strong> Civil Liabilities legislation of 2002was enacted for the purpose of reducing thenumber and financial consequences of claimssettled by defendants, including councils. Thelegislation provides protections, on conditionthat risks are managed appropriately, includingthe provision of warnings. Notwithstandingreductions in the incidence and severity ofliability claims currently being brought against<strong>Council</strong>, such claims usually take severalyears to resolve. It is too early for underwritersto draw definitive conclusions on the longterm effect of this legislation. Consequently,reductions in liability insurance premiums thatreflect the reduction in current claims are notyet being offered to <strong>NSW</strong> councils.
68 organisational services performance against objectivesClaims ManagementOur policy is to respond to all claims promptlyand fairly. Since the <strong>NSW</strong> Civil Liabilitieslegislation was introduced, the number ofliability claims being brought against us hasreduced. The monthly average incidence (notcost) of claims has decreased by up to 19%during the last year and by up to 34% overthe last two years. The reduction in theincidence of claims has coincided with a 50%reduction in the number of actual litigatedliability claims.Settlement of Liability ClaimsA key performance indicator for the riskmanagement function is to settle liabilityclaims under independently determinedreserves. Twenty claims were settled bynegotiation this year. The total amountreserved by independent assessment forsettlement of these claims was $539,284,with the actual cost of settlement being$364,039. This resulted in a total savingof $175,245.Below: Terri Dewhurst from IT section,manning the front counter help desk hotline.Information TechnologyIT Support RequestsIn general, the level of IT support requestsare increasing, especially during periods ofmajor changes to either IT infrastructure orsystems. This was the case this year, whenthe organisation’s PC’s were upgraded toMicrosoft Windows XP.Outlook for 2004-05Our IT department works to providecost effective support services tothe organisation. The section is alsoresponsible for the implementationand development of new andenhanced corporate systems toimprove overall service qualityand efficiency. The projects to beimplemented in the coming yearare a major library systemsupgrade, an asset managementproject and wide area networkinfrastructure optimisation.Cost Effective SupportServices to the OrganisationFollowing major infrastructure and systemimplementation, the year has seen a focustowards the consolidation of systems.In all, the IT unit installed 226 new personalcomputers. Customers also welcomed theinstallation of LCD screens.Development ofEnhanced Corporate SystemsThe first phase of a newly designed intranetutilising Microsoft Sharepoint technologywas implemented this year. The intranet isdesigned as a knowledge portal to a growingcollection of corporate documents.Legacy CorporateInformation SystemGenasys was successfully replaced withFinanceOne financial management systemand the Pathways Land Information System.Our IT unit is responsible for the infrastructureprovision and support for these systems.A key support project for the implementationof these major systems was documentscanning and electronic storage in our TRIMdocument management system. Processesand systems are now in place to facilitatethe creation of fully electronic developmentapplication files and the electronic storage ofall incoming invoices.Financial ManagementFinancial ManagementInformation System (FMIS)The introduction of the new FMIS in July<strong>2003</strong> has facilitated further improvements toour financial reporting and enquiry options.Since January 2004, a detailed projectreport is distributed monthly to managersand directors. The report allows continuousmonitoring of identified operating andcapital projects. Full end of monthreporting in the revised formats willbe available from July 2004.Number of IT internal assistancerequests made by staff, peakperiod reflect the introduction ofnew infrastructure or softwareprograms that require increasedsupport.The ratio remains well above theaccepted industry benchmarkof 100%.<strong>Council</strong> finances are greatly relianton rates as a source of income.The accepted benchmark is 50%.The ratio of rates and annualcharges increased this year butremains below the acceptedindustry benchmark of 5%.Monitoring Internal CustomerSatisfaction with the FMISThe implementation and development ofthe new FMIS is an ongoing process andwill continue into future periods. Formalsatisfaction surveys were scheduled to becarried out by Technology One, as part ofthe initial system review. However, it wasdetermined that this could not be undertakenthis year and will be carried over to thenew financial year.Land InformationAccess to Core Property InformationA new Land Information System (LIS) wasimplemented in November <strong>2003</strong>. The newLIS required a significant investment in stafftraining, along with final acceptance testingand the decommissioning of the previoussystem. The information contained within theprevious system is currently being archived. Auser survey will be conducted in the new year.
organisational services performance against objectives 69Outlook for 2004-05Forté Marketing and Design willwork to increase the level ofincome received from its externaloperations. This will be achievedthrough the strategic promotionof its services to niche markets.At the same time, it will develop aservice level agreement with seniormanagement to clearly define thescope and standard of internalservice provision. It is expected thatthe Forté Enterprise Agreement willbe completed and fully operationalby early 2005.Integrating LIS andGIS Into Key ProcessesEnhanced integration was achieved as partof the implementation of the new LIS system,providing users with greater access to bothland and GIS information.LIS Services Via the InternetThe initial stages of this project havecommenced and are principally related to thevalidation and cleaning up of core information.Over the next 12 months, we plan to delivera range of services, such as the supply ofcertificates via our website.MarketingForté Management CommitteeIn recognition of its external operations,and to pave the way for more operationalflexibility, a management committee wasformed in December <strong>2003</strong>. This stepprovides a reporting mechanism outside theorganisation’s structure and should resultin greater autonomy, essential for smoothbusiness operations. The committee meetson a quarterly basis and is responsible forsetting overall direction, assessing businessand financial performance, and ensuring thatthe best interests of Forté are consideredin future decision-making. Representedon the committee are the CEO, executivemanagement team and two senior managers,along with the Manager Forté Marketing andDesign and senior staff. Initiatives introducedin January 2004, and yet to be finalised,are the development of an internal servicelevel agreement and a separate enterpriseagreement covering Forté employees.The latter is in draft format with a view tosettlement in the near future.Above: Mahendra Jayawardena,Forté Marketing and Design workingon a multimedia project.Internal and External ClientsForté Marketing and Design provides servicesto the organisation, as well as an expandingexternal client base. In <strong>2003</strong>-04, Forté workedon 2,734 individual projects, 1,689 of whichwere undertaken on behalf of <strong>Council</strong> andaffiliated organisations, such as the IllawarraPerforming Arts Centre, <strong>City</strong> Art Gallery andTourism <strong>Wollongong</strong>.The total value of internal projects was$2.042 million. External income, on theother hand, exceeded $1.293 million -thehighest income level recorded to date for ourcommercial operations and well in excessof the income forecast of $1.130 million.The year, once again, proved to bechallenging, in terms of meeting conflictingproject demands, inadequate lead-in times,extended leave periods and higher thanexpected staff turnover.
70 organisational services performance against objectivesStaff Utilisation RatesIndividual billable hours targets are set forForté personnel to ensure that all financialoverheads are met and staff work at maximumefficiency. The combined production targetfor <strong>2003</strong>-04 was 37,754 hours, with the totalnumber of hours recorded at year’s end being34,539. The difference was principally due tolong-term staff vacancies and extended leaveperiods. In fact, virtually every employee withinForté met their billable hours targets, withseveral exceeding their target by a substantialamount. While the billable hours target wasnot met, unexpected salary savings helpedreduce overall costs and enabled budgetestimates to be met.Performance andCustomer SatisfactionAlthough no formal survey was undertakenof our client base this year, feedback ona ‘project to project’ basis indicated highsatisfaction levels, particularly in relation toproject quality. From an external perspective,Forté continues to excel with furtherexpansion into the marketplace, greaternumbers of clients and high levels of repeatbusiness. Many new customers wereintroduced to Forté through endorsementsfrom existing customers. This is especiallygratifying and stands as testimony to theexcellent business reputation enjoyed byForté Marketing & Design.Service ExpansionForté Marketing and Design operates asa full-service agency, providing marketing,research, graphic design, creative direction,copy writing, multimedia, photographic,internet production, promotions, signwritingand media placement services as required.This comprehensive service portfolioplaces Forté in an excellent position tosecure major contracts. The added strengthin the service portfolio, partly due to anexpansion of multimedia production andmedia placement services, has reapeddividends through successful proposalsto several prominent clients.Indicates a strong upward trend inattracting external clients, alongwith a corresponding increase inincome levels. Income received in<strong>2003</strong>-04 again exceeded budgetprojections.The nature of projects undertakenby Forté has changed slightly.Although slightly fewer projectswere commissioned this year, theywere of a more complex nature,resulting in increased productionhours.Human ResourcesRoad to Becominga Learning OrganisationAt <strong>Wollongong</strong> <strong>City</strong> <strong>Council</strong>, werecognise that our future success isbased on becoming a learning organisation.To this end, we are committed to the principleof embracing change for the future prosperityof the organisation and its employees. Ourfocus is to develop an understanding thatthrough learning, change can be viewed as anatural process rather than an obstacle. Wemust continue to support, nurture, and rewardthose employees who implement this learningphilosophy, as we strive towards the goalof continuous improvement. We must alsodevelop agendas that create and maintainpositive working relationships based on soundfoundations of sharing, education, leadership,mentoring, and assistance in applyingsuccessful strategies.Occupational Health and Safetyand Injury Management (OHS&IM)The safety of our employees is of paramountimportance. To this end, we are committedto providing a healthy, safe and injury-freeworking environment. Over the last 12months, our OHS&IM function strengthenedits profile within the organisation, addingadditional resources to focus on theimplementation of OHS&IM at ground level.In particular, this related to health andsafety training and skills developmentwithin the workplace.As a result of the WorkCover Audit in<strong>2003</strong>, our entire approach to themanagement of OHS&IM was reviewed,with a range of new initiatives implementedin early 2004. One such example wasthe provision of online information via theintranet. The site will continue to grow andwill become the primary information tool formanaging OHS&IM within the workplace. Priorto the OHS&IM intranet site ‘going live’, ouremployees were educated on thesystem, through small group sessions.Total production hours was thehighest recorded to date, but shortof our target due to staff vacanciesand delays with recruitment. Lostproduction opportunities, however,were offset by salary savings.This graph illustrates the cost ofworkers compensation relatingto workplace injuries. Thedownward trend in costs has adirect correlation with a welcomereduction in workplace injuries.The initiative has led to increased complianceregarding OHS&IM policies throughoutthe organisation, as well as ensuring thatemployees raise safety concerns withmanagement or relevant safety committees.Enterprise Agreement NegotiationsOur current Enterprise Agreementremains in operation until 30 June 2004.Discussions with management and employeerepresentatives are continuing, with a strongfocus on three main principles: organisationand operational change; the structure ofthe Enterprise Agreement, including policiesand procedures; and skills and performancemanagement.The new Enterprise Agreement willfundamentally build on previous agreementsand reinforces the commitment of all partiesin demonstrating best value services to ourcustomers, through improved principles andpractices. It is recognised that we must beable to respond quickly and creatively tocommunity needs and to applytechnological and organisational changeinitiatives to increase the quality of customerservice.Equal EmploymentOpportunity (EEO)EEO remains a driving factor for ouremployee management strategies.The finalisation of an EEO management planhighlights the rights of current and futureemployees to work in an environment freefrom discrimination. The plan views employeesprimarily on their qualificationsand experience and provides equalaccess to employment opportunities. Theplan was reviewed in late <strong>2003</strong>. This entaileddeveloping protocol to remedy identifiedinequalities and reviewing personnel policiesand practices to ensure compliance withEEO principles. The process of identifyingtraining needs was also reviewed to ensurethat all employees have equal access toorganisational information via the inductionprocess and other information networks.Benchmarking Human ResourceActivitiesThe Human Resources Division receivessurvey results from Mercer on behalf of thelocal government sector. These containindicators for measuring a wide range ofhuman resources activities. We use thisinformation to measure our performanceagainst industry benchmarks.We also undertake our own benchmarkingactivities with other councils for suchoperations as OH&S, rates of pay andemployee benefits. Our Enterprise Agreementcontains key performance indicators tomeasure the health of the organisation.Targets for these measures take intoconsideration both local government andother external organisations. In performingits activities, the Human Resources Divisioncomplies with all human resources-relatedlegislation.
organisational services performance against objectives 71Employee Learning,Training and DevelopmentIn <strong>2003</strong>-04, a key focus for training relatedto Occupational Health and Safety (OH&S)to ensure the wellbeing of our employees andto meet legislative requirements. Other majoractivities included training in the new LandInformation System (LIS), the upgradeto Finance One, new traffic control courses,and harassment prevention sessions forall depot staff. This resulted in 98% of theorganisation being involved in formaltraining. The average number of traininghours per employee continues to climb,with each employee averaging 30.3 hoursof training by year’s end.Workplace ReformThe enterprise agreement commits toproviding efficient, timely, cost effectiveand competitive services to thecommunity that are of the highest standard.We apply best practice principles andstrive to develop an efficient, customerorientedpublic sector organisation thatis conscious of environmental and socialissues. The year continued to see thereview of working practices, withcorresponding improvement inworkplace efficiency that included theimplementation of semi-autonomousand multi-skilled work teams.Family Friendly Work PracticesWe continue to provide a range offlexible working arrangements to ensurean acceptable balance between familycommitments and work demands.Family friendly work arrangements,such as flexible schedules and leavearrangements, paid and unpaid parentalleave, carer’s leave, child care advice,employee information and referralprograms, are just a few of the innovativeprograms available. These are specificallydesigned to make the working environmentan easier place for employees withfamily responsibilities.Above: Katrina Romanowski and MattSmart, our Human Resource Divisioncadets, attending university.The number of workplace incidentsresulting in a workplace injury hasfallen, due to an increase in OH&Straining and skills transfer back tothe workplace.The average incidence of PL andPI claims has decreased and isdue to the ongoing management ofrisks as well as the impact of theCivil Liability Act, 2002 and relatedlegislation.The upward trend in thepercentage of employees whoundertook formal learning anddevelopment activities illustratesbroadened coverage in providinglegislative and OH&S training.The average number of hourseach employee spends in formallearning and development activitiescontinues to rise, and reflects ourcommitment to increased formaltraining in key result areas.
72 organisational services performance against objectivesBenchmarking OH&S and InjuryManagement ProcessesAs part of our continual improvementprocess, two benchmarking projects wereinitiated this year relating to OH&S andinjury management system designprocesses. This strategic approach helpsus highlight our key organisational strengthsand, more importantly, identify areaswhere performance improvement isneeded. Recommendations from bothbenchmarking teams will be evaluated andimplemented in the coming year.Eliminating HarassmentFrom the WorkplaceHarassment is considered anunacceptable form of behaviour and isnot tolerated within the organisation.Consequently, we are dedicated toeliminating all forms of harassment fromthe workplace. A network of HarassmentContact Officers is established toprovide an alternative confidential contactpoint for those members of staff who, forwhatever reason, prefer not to take theircomplaint directly to their supervisor orwould like to speak to someone outsidetheir immediate work area. Posters identifyingthese contact officers are posted aroundthe workplace to ensure employees havealternative contacts at their disposal forreceiving information in relation to, orthe reporting of, harassment.Disability andDisadvantaged ServicesOur commitment to disability anddisadvantaged services will see thefurther expansion of the program in 2005,with an additional two appointments.Currently five people with a disability areemployed as cadets, apprentices ortrainees. In addition, our work-trialinitiative continues to be a successwith around two trials undertakenper month.An Aboriginal and Torres Strait IslandersEmployment Strategy was also developedduring the year, with the communityconsultation stage expected to take place inlate 2004. To date, we have three Aboriginaland Torres Strait Islander cadets, apprenticesand trainees working at <strong>Council</strong>, with twomore to commence in 2005.Employee WelfareThe Employee Assistance Programassists in maintaining the health andwellbeing of our employees. In operationsince 1984, the program assists employeeswho have experienced personal andwork-related problems that affect theirperformance. It facilitates positiveoutcomes for both the employeesconcerned and the organisation. Mostimportantly, it demonstrates the levelof support we offer our employees.Staff EstablishmentDivision Salary Wages TotalAdministration & Information Technology 56 56Communications & Public Relations 7 7Community Cultural Services 68.5 3 71.5Corporate Development 4 4Design 59 59Development Assessment & Compliance 68 68Engineering Services 42.5 100 142.5Environment & Health 44 5 49Finance 56 56Human Resources 45 13 58Library Services 78 78Strategic Planning 22.5 22.5Property 16 23 39Recreation & Natural Resources 58.5 177 235.5Works 24 127 151Management/Executive Services 36 + 2 36.0 + 2Total 687 448 1,135• Figures represented by 0.5 are job-sharing positions.• Establishment figures include permanent and temporary staff only and do not include casual staff.• Cadets and apprentices have been attributed to the Human Resources Division.Above: Sonia Batziavalis, FinancialManagement Division, responding to acustomer enquiry.Outlook for 2004-05In the areas of occupational healthand safety, we will continueto develop effective on linereporting mechanisms for OH&Sand injury management, inaddition to developing activitycompetency levels for these twoareas and an effective designcontrol process. To inform ouremployees of our progress in thesematters we will also implement acommunications strategy. Othermajor areas for development area new performance managementsystem, a transactional employeeself-service system and theimplementation of an Aboriginaland Torres Strait Islander Strategyand an employment action plan.Negotiations for the new enterpriseagreement will be finalised andclosely monitored to supportworkplace operations.
environmental management program performance against objectives73environmental management programProgram Goal Protection of the environment, its enhancementand the promotion of environmental sustainability.Environmental ManagementProgram ExpenditureFunction:Environmental Fund $0.283mEnvironmental ManagementProgram IncomeFunction:Environmental Fund $0.248mEnvironmental Management ProgramExpenditure vs. Total <strong>Council</strong> ExpenditureTotal EnvironmentalManagement Programexpenditure was$0.283mor 0.16% of total<strong>Council</strong> expenditureEnvironmental Management ProgramIncome vs. Total <strong>Council</strong> IncomeTotal EnvironmentalManagement Programincome was$0.248mor 0.14% of total<strong>Council</strong> incomemanagement plans, Bushcare managementprogram and the escarpment managementplan (currently underway). Additionally, informulating the strategic framework, it willbe crucial that these plans will have solicitedextensive community input and opinion.Community ContractTo ensure community participation, and ourown accountability in the Environment Fund,we will develop a Community Contract.This document will detail a comprehensiveprogram of environmental works that willfocus on the themes of flood, bushfire,stormwater quality, natural asset protectionand education. All these programs willenhance the integrity of our environmentand preserve it for future generations. TheCommunity Contract will report progress onthese initiatives and demonstrate transparencyand full public accountability of monies spentfrom the Environment Fund. The CommunityContract will be reported in the annualreport, our website, SOE report and periodicnewsletters.Sustainable EnvironmentalManagement<strong>Wollongong</strong> <strong>City</strong> <strong>Council</strong> is strongly committedto reducing environmental degradation, localflooding and bushfire risk. However, withinthe broad issue of sustainable environmentalmanagement of our region, there is no singlesolution - an integrated suite of projects isrequired. This approach will help achieve abalanced environmental and cost-effectiveoutcome to improve and preserve our naturalenvironment, both now and in the future.In response to this environmental challengefacing <strong>Wollongong</strong>, we have laid thefoundations for a sustainable future underthe banner of a fully integrated EnvironmentalManagement Program. An Environment Fundof $1 million will ensure these initiatives aredeveloped.Additionally, the Environment Fund willattract grand funding from both state andfederal agencies to supplement the fundsalready available.Environment FundGovernance CommitteeIt is the responsibility of the Environment FundGovernance Committee to oversee projects.Our officers will liaise with the committee in theidentification of the most critical environmentalrepair and enhancement needs for the city,with an emphasis on the restoration ofnatural, riparian, estuary and wetlands, alongwith Bushcare and green corridor activities.The committee will also act as the facilitatorbetween us and the community, particularly inrelation to a Community Contract that will beput in place for the Environment Fund.Program DirectionIn the selection of projects to be fundedby the program, a strategic framework willbe developed that will set clear directions.The implementation of many of our currentplans and policies will form the basis of theEnvironment Fund. These include the State ofEnvironment, floodplain management plans,bushfire management plans, stormwatermanagement plans, community landState and Federal Funding LeverageThe Environmental Management Programwas formulated from a priority listing andapproved by the Environmental FundGovernance Committee to maximise grantopportunities that exist at state and federallevels. Liaison with various bodies occurredduring <strong>2003</strong>-04 regarding the ability toattract commensurate funding. From thesediscussions, a number of applications weresuccessful.SUCCESSFUL APPLICATIONSState <strong>Government</strong>Sustainable Household Package $240,767Estuary Management $136,000Tramway Creek Rehabilitation $27,000Federal <strong>Government</strong>Cool Communities $30,000Total $433,767
74environmental management program performance against objectivesDiscussions are continuing with a number ofauthorities regarding potential funding. Furthergrant applications will be initiated as thesubmissions cycle dictates for each agency.UNSUCCESSFUL APPLICATIONSState <strong>Government</strong>Gurungaty Waterway-Integrated Education Centre $500,000Sedimentation Basin $180,000Total $680,000Total Environment Fund BudgetIn <strong>2003</strong>-04, a total of $1,433,767was committed to the EnvironmentalManagement Program.The lack of native vegetation of ripariancorridors has a negative influence oncatchment water quality and ecosystemintegrity. Significantly, the infestation of weedsalong creek corridors contributes to floodingand water quality degradation.Additionally, the Environment FundGovernance Committee recognised thatstormwater runoff from urban areas adverselyaffects the quality of aquatic environments.Many issues relating to environmentaldegradation of our waterways are related,either directly or indirectly, to water andstormwater quality. As we had alreadyprepared stormwater management plans,as part of the <strong>NSW</strong> <strong>Government</strong>’s initiativefor managing stormwater, these were usedto identify existing problems and areaswhere works were required as a priority.Below: Carl Glaister from the <strong>Wollongong</strong>Botanic Garden collecting tree samplesand bush tucker from the PuckeysReserve for analysis.Projects Introduced During <strong>2003</strong>-04During the latter part of this year, a prioritisedlist of works was finalised by the EnvironmentFund Governance Committee from whicha strategic framework was developed. Thegovernance committee, in its review ofenvironmental challenges facing <strong>Wollongong</strong>indicated that the reduction in water qualitythrough sedimentation, nutrients andpathogens and poor management practiceswere priorities that needed to be addressed.It was also recognised that the biodiversityof local riparian corridors had decreasedand are continuing to decline. This is a resultof the degradation of aquatic habitats anda reduction in stream fish and invertebratepopulations in local streams.Proposed solutions identified in thestormwater management plans also includedrevegetation and weed removal in creekcorridors, the installation of gross pollutanttraps at a number of locations and innovativewater treatment techniques, using bothon-line and off-line wetland schemes toreduce harmful nutrient loads on LakeIllawarra and other estuaries.The interpretation of the solutions to theseenvironmental challenges enabled theEnvironment Fund Governance Committeeto initiate an integrated EnvironmentalManagement Program that addresses theseissues. This will help alleviate water qualityproblems associated with the health ofour waterways.Protecting Local EstuariesThe Environment Fund GovernanceCommittee also recognised the important rolethat estuaries play as the end receiver of ourwaterways. There are many small estuariesand coastal wetlands along the coast of<strong>Wollongong</strong>. As such, the EnvironmentalManagement Program has embarked ona management process to protect theecological, recreational and aesthetic valuesof local estuaries. The process is fullyintegrated into the strategic framework ofthe Environmental Management Program,incorporating existing catchment andfloodplain management strategies.
environmental management program performance against objectives75External recognition of the importance of thisprogram was evidenced through our successin attracting grant funding from theDepartment of Planning, Infrastructure andNatural Resources. In partnership with thedepartment, we are proposing to commenceestuary process studies on Fairy, Towradgiand Hewitts/Tramway creeks with a viewto producing a management plan for eachestuary. These will detail the range of actionsto be undertaken to improve the health of ourestuaries. The Environmental ManagementProgram integrates aspects of a holisticstrategy towards water quality (includinglitter and nutrient loading) in conjunction withriparian vegetation rehabilitation.Sustainability Begins at Home ties togethermany existing programs run by variousagencies that most people either do nothave time to fully investigate or, more often,don’t know how to find. In so doing, we havedeveloped partnerships with governmentand industry groups, such as the SustainableEnergy Development Authority (SEDA);Department of Environment and Conservation;Integral Energy; local nurseries; solar energysuppliers; and rainwater tank suppliers.These partnerships have helped us to delivernew programs, as well as consolidatingexisting initiatives aimed at producing positiveenvironmental outcomes.Below: Two important initiatives in theSustainability Begins at Home programpromote the use of solar hot water systemsand rainwater collection tanks.Water Education OfficerThe specialist Water Education Officer,employed in March <strong>2003</strong>, has consultedwith various funding bodies, educationalinstitutions and the local community toimplement a comprehensive water educationprogram for the city. The program willroll-out in late 2004 and will link in with theEnvironmental Management Program.The strategic framework developed for theproposed program has drawn upon the themeof water, and community education. Crucially,community involvement, through educationalinitiatives, was highlighted as a major target.The aim is to facilitate a paradigm shift incommunity behaviour.Sustainability Beginsat Home ProgramAs a major community initiative, theEnvironment Fund Governance Committeedeveloped a package titled SustainabilityBegins at Home. The program will help reduceimpacts on the environment and lessenhousehold bills for local residents.The Sustainability Begins at Home packageencourages reduced water and energyconsumption, reduced greenhouse gasemissions by encouraging public transportand increased biodiversity by subsidising theplanting of local species.Sustainability Begins at Home symbolisesthe link-role we can play in forgingpartnerships between government, industryand the community. <strong>Council</strong> has emerged asthe facilitator for environmental initiatives forthe home.Outlook for 2004-05The Environmental ManagementProgram will continue to activelysource funding from a range ofstate and federal agencies tosupplement its $1 million budget.Our success in attracting grantfunding will be a key performanceindicator for this program.We will also implement furtherstrategies to strategicallyaddress key environmentalissues within <strong>Wollongong</strong>.The coming year will alsosee the continuation of ourmajor initiatives such as theSustainability Begins atHome program and thewater reduction communityeducation program.
76 financial statements contents financial reportFinancial OverviewFinancial <strong>Report</strong>ing 78Financial StatementsStatement of Financial Performance for the Year Ended 30 June 2004 80Statement of Financial Position as at 30 June 2004 81Statement of Changes in Equity for the Year Ended 30 June 2004 82Statement of Cash Flows for the Year Ended 30 June 2004 83Notes to, and Forming Part of, the General Purpose Financial <strong>Report</strong>sNote 1 Significant Accounting Policies 84Note 2 (a) Functions 90Note 2 (b) Components of Functions 91Note 3 Expenses from Ordinary Activities 92Note 4 Revenues from Ordinary Activities 94Note 5 Gain or Loss on Disposal of Assets 96Note 6 Cash Assets and Investment Securities 97Note 7 Receivables 100Note 8 Inventories and Other Assets 101Note 9 (a) Property, Plant and Equipment 102Note 9 (b) Restricted Property, Plant and Equipment 104Note 10 Liabilities 106Note 11 Reconciliation to Statement of Cash Flows 108Note 12 Commitments for Expenditure 109Note 13 Statement of Performance Measurement 110Note 14 Conditions Over Grants and Contributions 110Note 15 Financial Instruments 111Note 16 Significant Variations from Original Budget 112Note 17 Statement of Contribution Plans 114Note 18 Assets and Liabilities Not Recognised in Statement of Financial Position 117Independent <strong>Report</strong> to <strong>Wollongong</strong> <strong>City</strong> <strong>Council</strong><strong>Report</strong> on the General Purpose Financial <strong>Report</strong>s - Section 417 (2) 118<strong>Report</strong> on the Conduct of the Audit for the Year Ended 30 June 2004 - Section 417 (3) 119Special Purpose Financial <strong>Report</strong>sStatement by <strong>Council</strong>lors and Management Made Pursuant to the Local <strong>Government</strong> Codeof Accounting Practice and Financial <strong>Report</strong>ing 121Statement of Financial Performance by Business Activities for Year Ended 30 June 2004 122Statement of Financial Position by Business Activities for Year Ended 30 June 2004 124Notes to the Special Purpose Financial <strong>Report</strong>sNote 1 Significant Accounting Policies 126Independent Auditor’s <strong>Report</strong> to <strong>Wollongong</strong> <strong>City</strong> <strong>Council</strong>Independent Auditor’s <strong>Report</strong> on the Special Purpose Financial <strong>Report</strong>s 128Special SchedulesSpecial Schedule No 1 - Net Cost of Services for the Year Ended 30 June 2004 129Special Schedule No 2 (1) - Statement of Long Term Debt (All Purpose)for the Year Ended 30 June 2004 133Special Schedule No 7 - Condition of Public Works as at 30 June 2004 134
financial executive summary financial report 77financial executive summaryAmid the ongoing challenges facing local government and the increasingly high expectationsof our community for quality services and facilities in a sustainable environment, I am happy toreport that we have had a year of solid financial performance.Our overall cash and investments position fell slightly from $71 million at the end of2002-03 to $69 million at the end of the current year. Much of <strong>Council</strong>’s cash is restricted inits use to specific purposes by external bodies, legislation, and <strong>Council</strong> resolution, the level ofunrestricted cash and investments decreased from $11.1 million to $8.3 million.The Statement of Financial Performance shows a deficit of $5.4 million that includes non cashitems, such as depreciation, and movements in provisions for expenses accrued but not yetpaid. The deficit from ordinary activities before capital amounts (grants and contributions) was$12.3 million. This statement provides some indication that <strong>Council</strong> is not earning sufficientrevenue to carry out day to day operations and maintain current level of assets over the longerterm. In coming years, <strong>Council</strong> and the community are faced with the challenge to match therevenues received with appropriate levels of community amenity and service. Our corporateplan 2004–08 includes revenue policy to address this issue.Our debt position has remained very conservative with a total debt outstanding of $15.8 million,representing less than 1.4% of asset value. The Debt Service Ratio (note 13) of 10.6% hasincreased from the 2.3% recorded the previous year, due to the transfer of $10.8 million into asinking fund reserve for the settlement of the purchase of the administration building in 2006.Two major management systems were implemented this year. The Financial ManagementInformation System became operative from 1 July <strong>2003</strong> and the new Land Information System(LIS) from 17 November <strong>2003</strong>. Integration between our document management system (TRIM)and the Land Information System was developed as part of the LIS implementation. Othermajor projects developed during the year included the <strong>City</strong> Beach Function Centre and Kiosk,Stage 1 of the <strong>City</strong> Beach Foreshore Improvement Program and Stage 2 of the Mt Keira RoadRock Stabilisation Program.My thanks to our staff and external auditors who worked on the preparation of thesestatements, depicting a solid financial position that can provide a firm basis for the continuedoperations of <strong>Council</strong>.Rod Oxley, PSMCEO, <strong>Wollongong</strong> <strong>City</strong> <strong>Council</strong>
78 financial overview financial reportUnderstanding the Financial StatementsFinancial <strong>Report</strong>ing StandardsThe financial statements provide information on our performance and financial status. These are prepared under accrual accounting principles,in accordance with the Local <strong>Government</strong> Act 1989, Australian Accounting Standards and specific requirements of the Department of Local<strong>Government</strong> as detailed in the Code of Accounting and <strong>Report</strong>ing Requirements. The code was designed to standardise financial reporting forlocal government bodies throughout New South Wales. The significant accounting policies used in preparing our financial report are set out inNote 1 to the statements on page 84.Audited Financial StatementsThe General Purpose Financial Statements are audited by PricewaterhouseCoopers. This year, we again received an unqualified audit, and theircomments and reports are included in the body of our financial statements. The financial statements are comprised of four key financial reports,along with explanatory notes. These are: Statement of Financial Performance, Statement of Financial Position, Statement of Changes in Equityand Statement of Cash Flows. Each has a specific purpose, providing information at a summary level on a particular aspect of our finances.When read in conjunction with the explanatory notes, they provide considerable information on our current financial position.Financial <strong>Report</strong>ingThe financial reports and statistics included in this year’s annual report reflect our financial position as at 30 June 2004. These were preparedin accordance with the Local <strong>Government</strong> Act 1993 and the Regulations, as well as Australian Accounting Standards and Statements ofAccounting Concepts.<strong>Council</strong> has also complied with the requirements of both the Local <strong>Government</strong> Code of Accounting Practice and Financial <strong>Report</strong>ing and theLocal <strong>Government</strong> Asset Accounting Manual.The financial reports have been prepared on the accrual basis of accounting.<strong>Council</strong> OperationThe corporate review conducted at 31 March 2004, along with projects reintroduced during the June quarter predicted a projected funds deficitof $5.1 million for the year ending 30 June 2004.The quarterly corporate review is generally conducted on a cash flow basis and acknowledges internal and external restrictions on cash forspecific purposes. The effects of non cash transactions, such as depreciation are excluded.The actual result at the end of the June quarter was a surplus of $0.7 million. Major factors in the improvement against the projected budgetwere projects totalling $4.9 million not finalised at year end and marginal improvements in income and savings in expenditure contributing$0.8 million.The following is a reconciliation between the cash flow based result shown above and the AAS27 result:$’000 $’000Cash flow result surplus/(deficit) 652Non cash expenses excluded for cash flow resultDepreciation (30,303)Asset write off (456)Increase in employee’s leave entitlements (202)Worker’s compensation provision (167) (31,128)Carrying value of assets sold (3,379) (3,379)Capital expenditure included in cash flow resultAsset acquisitions, construction and development 38,719Decrease in insurance provision 2,010Loan repayments principal 1,921 42,650Grants and contributions received in the current year but not expended in the year 2,149 2,149Adjustment for restricted cashTransfers to restricted cash 27,637Transfers from restricted cash (30,941) (3,304)Deferred payment arrangement administration buiding (13,081) (13,081)Result per statement of financial performance (deficit) (5,441)
financial overview financial report 79Rates<strong>Council</strong> receives its major source of revenue from rates. For the year commencing 1 July <strong>2003</strong>, this represented 53.5% of income. The stategovernment permitted an increase of 3.6% in the rate base for the rating year 1 July <strong>2003</strong> to 30 June 2004. Land valuations of base date July2001 were used for rating purposes.<strong>Government</strong> Grants<strong>Government</strong> grants also represent a significant portion of <strong>Council</strong>’s income. The majority of these grants are tied to specific works and cannot beused for any other purpose.Total income received from grants in 2004: $19.8 million (previous year, ie <strong>2003</strong> was $19.8 million)Represents % of total income in 2004: 14.0% (previous year, ie <strong>2003</strong> was 14.2%)Restricted cash in respect of unspent grants for year ended 30/6/04: $5.1 million (previous year, ie <strong>2003</strong> $5.8 million)Fees and Charges<strong>Council</strong> cannot change fees that are set by statute. These include fees such as dog registration fees and certain building and development fees.The majority of fees set by <strong>Council</strong> were increased by 2.4% in the year ending June 2004. Before adopting these increases <strong>Council</strong> gave dueconsideration to factors such as the cost to <strong>Council</strong> providing the services and the importance of the service to the community.Statement by <strong>Council</strong>lors and Management Made Pursuant to Section 413(2)(c) of the Local <strong>Government</strong> Act 1993 (as Amended)The attached annual financial statements have been drawn up in accordance with:• The Local <strong>Government</strong> Act 1993 (as amended) and the Regulations made thereunder,• The Australian Accounting Standards and professional pronouncements,• The Local <strong>Government</strong> Code of Accounting Practice and Financial <strong>Report</strong>ing,• The Local <strong>Government</strong> Asset Accounting Manual.To the best of our knowledge and belief, these reports:• Present fairly <strong>Council</strong>’s financial position and operating result for the year, and• Accord with <strong>Council</strong>’s accounting and other records.We are not aware of any matter that would render the reports false or misleading in any way.Signed in accordance with a resolution of <strong>Council</strong> made on 27 September 2004.Cr A DarlingLord MayorCr V Zanotto<strong>Council</strong>lorR OxleyCEOS PayneResponsible AccountingOfficerUnderstanding Statements by Principal Accounting Officer, Chief Executive Officer, <strong>Council</strong>lors and AuditorsThese sections provide a written undertaking that the accounts presented are accurate and trustworthy. In particular, the auditors reportprovides an independent view of the financial statements and advises of any issues of concern.
80 financial statements financial reportStatement of Financial PerformanceExpenses from ordinary activitiesNotesBudget2004$’000Actual2004$’000Actual<strong>2003</strong>$’000Employee costs 3(a) 62,588 61,738 59,538Materials and contracts 34,231 31,734 32,571Borrowing costs 3(b) 88 577 238Depreciation 3(c) 31,598 30,304 29,401Other expenses 3(d) 18,513 22,612 24,028Loss from disposal of assets 5 603 - -Total expenses from ordinary activities 147,621 146,965 145,776Revenues from ordinary activitiesRates and annual charges 4(a) 86,722 86,683 85,492User charges and fees 4(b) 19,183 18,191 17,401Investment revenues 4(c) 2,603 4,235 3,714Grants and contributions - operating 4(e)&(f) 18,391 19,708 19,115Other revenues 4(d) 3,075 5,448 2,917Profit from disposal of assets 5 - 396 1,196Revenues from ordinary activities before capitalamounts129,974 134,661 129,835Deficit from ordinary activities before capital amounts (17,647) (12,304) (15,941)Grants and contributions - capital 4(e)&(f) 5,447 6,863 9,220Net deficit for the year (12,200) (5,441) (6,721)This statement is to be read in conjunction with the attached notes.Understanding the Statement of Financial PerformanceThis report measures our financial performance and shows whether we made a profit or loss in the delivery of services. The statement indicateswhere money comes from (revenue) and how it is spent (expenses). Expenses are not the same as cash expenditure in that the latter onlymeasures the consumption of resources (cash and other assets).For example, the purchase of an asset is not regarded as the consumption of a resource, but rather the transfer of an existing cash resourceto another resource (asset). In the case of an asset that has a limited life, such as a vehicle, it is depreciated over the period that it is used andreported as an expense in the Statement of Financial Performance.Similarly, under accrual accounting, an expense is recognised when we actually commit to the expenditure. An example is the accrual ofemployeleave and 1.3 wincluding the unpaid portion. This represents the amount of resource consumed, in dollar terms, even though payment may not be required formany years.Other significant differences between accrual of revenue or expenses, against cash or funds concepts, include the treatment of loan funds andtransfers from reserves as actual expenses; and all revenue being accounted for when it is received or committed, not when expended. A furtherdistinction is that neither loan repayments nor transfers to reserves are treated as an expense. For example, the payment of an employee’sentitlements made on their resignation is not an expense, as it was already accounted for in the year it was accrued.If the report states a loss, this means that we are not earning sufficient revenue to cover the consumption of cash and other assets in providingcommunity amenity and services. A continued trend of loss will result in the organisation not being able to carry out existing levels of service,and to maintain and replace its assets (predominately infrastructure assets, such as roads, bridges, drainage, parks, buildings, etc) at the timethey need to be replaced. Continual losses may indicate concern over an ability to remain financially viable in the longer term.For the year ending 30 June 2004, <strong>Council</strong> recorded a deficit of $5.4 million. This improvement over last year’s results is mainly due to anincreased operating revenue of $3.6 million, and lower capital grants and contributions totalling $2.4 million.
financial statements financial report 81Statement of Financial PositionCurrent assetsNotesActual2004$’000Actual<strong>2003</strong>$’000Cash assets 6 29,373 37,491Investment securities 6 12,000 17,889Receivables 7 10,425 7,123Inventories 8 391 108Other 8 147 1,542Total current assets 52,336 64,153Non current assetsCash assets 6 15,717 15,338Investment securities 6 11,500 -Receivables 7 1,704 1,585Inventories 8 5,734 6,013Property, plant and equipment 9 1,082,383 1,079,825Total non current assets 1,117,038 1,102,761Total assets 1,169,374 1,166,914Current liabilitiesPayables 10 12,409 13,428Borrowings 10 1,652 2,336Provisions 10 8,555 9,553Total current liabilities 22,616 25,317Non current liabilitiesBorrowings 10 14,218 3,111Provisions 10 25,340 25,845Total non current liabilities 39,558 28,956Total liabilities 62,174 54,273Net assets 1,107,200 1,112,641EquityAccumulated surplus 856,799 862,240Asset revaluation reserve 250,401 250,401Total equity 1,107,200 1,112,641This statement is to be read in conjunction with the attached notes.Understanding the Statement of Financial PositionT. It showsthe ‘value’ of our assets, as well as our liabilities or claims against these assets. The assets and liabilities are expressed as either current ornon current. Current means that these assets or liabilities are expected to be paid or converted to cash within the next twelve month period.Our most significant asset category is property, plant and equipment. This includes all our infrastructure assets, such as roads, bridges, drains,playing fields, parks, buildings, etc as detailed in Note 9 on page 102.At 30 June 2004, our Statement of Financial Performance indicated that we are in a sound financial position, despite a reduction of $7.5million in net current assets, mainly due to changes in the definition of investments to a non current status (accounting policy). Additionally, ouroperating deficit also reduced total net assets. In <strong>2003</strong>-04, our total assets increased by $2.4 million, but were offset by an increase in liabilitiesof $7.8 million, largely due to deferring payment for the purchase of our administration building.
82 financial statements financial reportStatement of Changes in EquityAccumSurplusAssetReval.Reserve2004$’000<strong>Council</strong>EquityInterestOutsideEquityInterestBalance at beginning of the reporting period 862,240 250,401 1,112,641 - 1,112,641Change in net assets recognised in the Statement ofFinancial Performance (5,441) - (5,441) - (5,441)Balance at end of the reporting period 856,799 250,401 1,107,200 - 1,107,200This statement is to be read in conjunction with the attached notes.TotalAccumSurplusAssetReval.Reserve<strong>2003</strong>$’000<strong>Council</strong>EquityInterestOutsideEquityInterestBalance at beginning of the reporting period 868,961 250,401 1,119,362 - 1,119,362Change in net assets recognised in the Statement ofFinancial Performance (6,721) - (6,721) - (6,721)Balance at end of the reporting period 862,240 250,401 1,112,641 - 1,112,641This statement is to be read in conjunction with the attached notes.TotalUnderstanding the Statement of Changes in EquityThe Statement of Changes in Equity summarise the changes in our net worth. This can only change as a result of a ‘profit’ or ‘loss’ recordedin the Statement of Financial Performance, or an increase in the value of non current assets resulting from a revaluation. The amount is thentransferred to an Asset Revaluation Reserve, until the asset is sold or a real profit is realised, as opposed to being a book entry only. The value ofall non current assets must be reviewed each year to ensure they reflect their true value in the Statement of Financial Position. Any movementson other reserves within this statement are adjusted through accumulated surplus. In <strong>2003</strong>-04, the reduction in our net equity was a directconsequence of the deficit in our operating result.
financial statements financial report 83Statement of Cash FlowsCash flows from operating activtiesReceiptsNotesBudget2004$’000Actual2004$’000Actual<strong>2003</strong>$’000Rates and annual charges 86,723 86,261 85,526User charges and fees 19,183 18,001 19,399Investments income 2,603 4,048 3,750Grants and contributions 23,838 25,402 30,372Other operating receipts 3,075 11,825 8,866PaymentsEmployee costs (62,587) (63,816) (57,758)Materials and contracts (34,231) (34,077) (35,632)Borrowing costs (88) (577) (238)Other operating payments (18,513) (27,152) (26,884)Net cash provided by (or used in) operating activities 11 20,003 19,915 27,401Cash flows from investing activitiesReceiptsProceeds from sale of property, plant and equipment 6,550 3,775 5,200Proceeds from sale of investment securities - - 4,435Repayments from deferred debtors - - 8PaymentsPurchase of property, plant and equipment (49,685) (23,482) (23,440)Purchase of investment securities (8,169) (5,611) -Net cash provided by (or used in) investing activities (51,304) (25,318) (13,797)Cash flows from financing activitiesReceiptsProceeds from borrowings and advances 1,140 - 565PaymentsRepayments of borrowings and advances (195) (211) (152)Repayment of finance lease liabilities (3,152) (2,125) (2,479)Net cash provided by (or used in) financing activities (2,207) (2,336) (2,066)Net increase (decrease) in cash held (33,508) (7,739) 11,538Cash at beginning of reporting period 11 52,829 52,829 41,291Cash at end of reporting period 11 19,321 45,090 52,829This statement is to be read in conjunction with the attached notes.Understanding the Statement of Cash FlowsThis statement summarises our cash receipts and payments for the financial year and the net ‘cash in hand’ position. It differs from theStatement on Financial Performance in that it excludes non cash expenses, such as depreciation and accruals. It also includes payments orreceipts in relation to capital items and any financing activities, such as loan funds received and paid. The Statement of Cash Flows has threesections.The Cash Flow from Operating Activities summarises all income and expenses in relation to ongoing service delivery. It is essential that we havea cash surplus to maintain day-to-day operations, and to provide funds for future community assets.The Cash Flow from Investing Activities refers to our capital works budget expenditure, as well as any receipts from the sale of assets andinterest earned on investments.The Cash Flow from Financing Activities sets out all activities from financing that may include receipts and payments of loans.In <strong>2003</strong>-04, our overall cash flow position fell by a relatively minor amount of $2 million, largely reflecting largely the operating result.
84 notes to the financial statements financial reportUnderstanding the Notes to the AccountsThe Notes to the Accounts provide further information in relation to the rules and assumptions used to prepare the financial statements andexplains specific items within the statements. The notes also advise of any changes to accounting standards, policy or legislation that maychange the way our statements are prepared.Within the four financial statements, there is a column indicating a note to which the reader may refer for additional information. This isparticularly useful in cases where there are significant changes from the previous year’s comparative figures.Note 1 - Significant Accounting Policies1. The Local <strong>Government</strong> <strong>Report</strong>ing Entity1.1 Prior to the 1999/2000 financial year, <strong>Council</strong> consolidated a number of small business activities into the General Purpose Financial <strong>Report</strong>s.Having consideration to the materiality of consolidating these activities and in consultation with <strong>Council</strong>’s auditors, a decision was taken not toconsolidate these activities.1.2 The General FundIn accordance with the provisions of S409 (1) of the Local <strong>Government</strong> Act 1993, all money and property received by <strong>Council</strong> is held in ourGeneral Fund unless it is required to be held in the Trust Fund.1.3 The Trust FundThe <strong>Council</strong> is required under the Local <strong>Government</strong> Act to maintain a separate and distinct Trust Fund to account for all monies and propertyreceived by <strong>Council</strong> in trust which must be applied only for the purposes of or in accordance with the trusts relating to those monies. Trustmonies and property subject to <strong>Council</strong>’s control have been included in these reports. Trust monies and property held by <strong>Council</strong> but not subjectto <strong>Council</strong>’s control have been excluded from these reports. A separate statement of monies held in the Trust Fund is available for inspection atour office by any person free of cost.2. Basis of Accounting2.1 ComplianceThe General Purpose Financial <strong>Report</strong>s have been prepared in accordance with applicable Australian Accounting Standards, other authoritativepronouncements of the Australian Accounting Standards Board, Urgent Issues Group Consensus Views, the Local <strong>Government</strong> Act andRegulations, the Local <strong>Government</strong> Code of Accounting Practice and Financial <strong>Report</strong>ing and the Local <strong>Government</strong> Asset Accounting Manual.2.2 BasisThe General Purpose Financial <strong>Report</strong>s have been prepared on the accrual basis of accounting. Except for assets that are shown at currentcost valuation and employee leave entitlements which are shown at the present value of future cash flows, the report has been prepared inaccordance with the historical cost convention.The accounting policies adopted for the reporting period are consistent with those of the previous reporting period except where otherwiseindicated.3. RatesThe rating period and reporting period for the <strong>Council</strong> coincide and, accordingly, all rates levied for the year are recognised as revenues.Uncollected rates are recognised as receivables after providing for amounts due from unknown owners and postponed rates in accordance withthe requirements of the Local <strong>Government</strong> Act 1993.4. Grants, Contributions and Donations4.1 GeneralGrants, donations and other contributions are recognised as revenues when the <strong>Council</strong> obtains control over the assets comprising thecontributions. Control over granted assets is normally obtained upon their receipt. Where prior advice of grants has been received andexpenditure has been incurred in accordance with the relevant terms and conditions, unreceived grant entitlements are recorded as receivables.Unreceived contributions over which the <strong>Council</strong> has control are recognised as receivables.
notes to the financial statements financial report 85Where grants, contributions and donations recognised as revenues during the reporting period were obtained on the condition that they beexpended in a particular manner or used over a particular period, and those conditions were undischarged as at the reporting date, the amountssubject to those undischarged conditions are disclosed in these notes as restricted assets.Also disclosed is the amount of grants, contributions and receivables recognised as revenues in a previous reporting period which were obtainedin respect of the <strong>Council</strong>’s operations for the current reporting period.4.2 Contributions Under S94 of the Environmental Planning and Assessment (EPA) Act 1991The <strong>Council</strong> has obligations to provide facilities from contributions required from developers under the provisions of S94 of the EnvironmentalPlanning and Assessment Act 1991. Contributions received each year are required to be held as restricted assets until used for the purposedesignated in formal contribution plans.These contributions may be expended only for the purposes for which the contributions were required, but the <strong>Council</strong> may, within each area ofbenefit, apply contributions according to the priorities established in the relevant contribution plans and accompanying works schedules.The <strong>Council</strong> also holds contributions obtained prior to the requirement to have contribution plans in place. These monies must be applied onlyfor purposes for which they were obtained.5. InvestmentsInvestments are recognised at cost. Interest revenues are recognised as they accrue. Bills of exchange, which have been purchased at adiscount to face value, are recognised at cost. The discount brought to account during the reporting period is accounted for as interest received.6. ReceivablesReceivables for rates and annual charges are secured over the subject land, and bear interest at rates determined in accordance with the Local<strong>Government</strong> Act 1993 (as amended) and the Regulations and Determinations made thereunder.Other receivables are generally unsecured and do not bear interest.All receivables are reviewed as at the reporting date and adequate provision made for amounts the receipt of which is considered doubtful.7. InventoriesInventories held in respect of stores have been valued by using weighted average cost on a continual basis, after adjustment for loss of servicepotential. Inventories held in respect of business undertakings were valued at the lower of cost and net realisable value.Real Estate Assets developments were classified as Inventory in accordance with Australian Accounting Standard AAS2 and are valued atthe lower of cost or net realisable value. Cost includes acquisition, development, borrowing and other costs incurred on the financing of thatacquisition up to the time of sale. The amount by which cost exceeds net realisable value was recognised as an expense.Revenues arising from the sale of property are recognised in the Statement of Financial Performance, when settlement of all the conditions of thecontract is fulfilled.8. Property, Plant and Equipment8.1 Transitional ProvisionsExcept for land under roads and bulk earthworks, infrastructure assets acquired or constructed prior to 1 January 1993 have been capitalisedin the accounts on a staged basis since June 1995. The effect of recognising these non current assets has increased <strong>Council</strong>’s accumulatedwealth by $990 million (925%) since 1993. In addition, the annual estimated depreciation expense is over $30 million as compared to $5 millionprior to the non current asset recognition. All non current assets purchased or constructed are capitalised as soon as the asset is held ‘ready foruse’.
86 notes to the financial statements financial report8.2 MaterialityFor assets capitalised since 1 July 2002, the following rules of materiality are applied where the asset has an economic life that is determined tobe longer than one year:Plant and equipment Capitalise if value > $5,000Office equipment Capitalise if value > $5,000Furniture and fittings Capitalise if value > $5,000Land• council land• open spaceCapitaliseCapitaliseBuildings• construction/extensionsCapitalise• renovations Capitalise if value > $5,000Other structures Capitalise if value > $5,000Roads, bridges, footpaths• Construction/reconstructionCapitalise• Reseal/resheet/major repairs Capitalise if value > $5,000For assets capitalised prior to 1 July 2002, the following rules of materiality are applied where the asset has an economic life that is determinedto be longer than one year:Plant and equipment Capitalise if value > $1,500Office equipment Capitalise if value > $1,500Furniture and fittings Capitalise if value > $1,500Land• council land• open spaceCapitaliseCapitaliseBuildings• construction/extensionsCapitalise• renovations Capitalise if value > $1,500Other structures Capitalise if value > $1,500Roads, bridges, footpaths• Construction/reconstructionCapitalise• Reseal/resheet/major repairs Capitalise if value > $1,5008.3 ValuationThe ‘Recoverable Amount Test’ of paragraph 30 of AAS 10 does not apply to the <strong>Council</strong> except in relation to recognised trading operations.8.3.1 Plant and Equipment, Office Equipment, Furniture and Fittings, Buildings and Land ImprovementsAll assets as at 30 June 2001 were recorded at deemed cost of acquisition in accordance with AAS 38 (AASB 1041) paragraph 10.4(a) of theStandard. All assets acquired after this date have been recorded at cost.Pursuant to clause 8.2.1 of AAS 36, <strong>Council</strong> has undertaken current valuations of all buildings.Current Valuation – An independent valuation of buildings, based on Insurance Value at 6 June <strong>2003</strong>, was undertaken by Mr Scott Fullarton,registered valuer number 2144, of Scott Fullarton Valuations Pty Ltd. The insurance value of the valuation was $293,918,650. The new valuationwas not brought to account as <strong>Council</strong> has continued to adopt the ‘cost basis’ for recording this asset class.8.3.2 Operational LandAt 1 July 2000, <strong>Council</strong> elected to record all operational land at deemed cost of acquisition in accordance with AAS 38 (AASB 1041) paragraph10.4(a) of the Standard.Pursuant to clause 8.2.1 of AAS 36, <strong>Council</strong> has undertaken current valuations of all land.Current Valuation – A valuation of operational land based on market value of land only, taking into account the property’s zoning and permitteduse, was undertaken as at 30 June 2001 by the Valuer General. The valuation was $28,322,910 and has not been brought to account as<strong>Council</strong> has continued to adopt the ‘cost basis’ for recording this asset class.
notes to the financial statements financial report 878.3.3 Community LandAt 1 July 2000, <strong>Council</strong> elected to record all community land at deemed cost of acquisition in accordance with AAS 38 (AASB 1041) paragraph10.4(a) of the Standard.Pursuant to clause 8.2.1 of AAS 36, <strong>Council</strong> has undertaken current valuations of all land.Current Valuation – A valuation of community land based on market value of land only, taking into account the property’s zoning and permitteduse, was undertaken as at 30 June 2001 by the Valuer General. The valuation was $107,004,040 and has not been brought to account as<strong>Council</strong> has continued to adopt the ‘cost basis’ for recording this asset class.8.3.4 Land Under RoadsLand under roads was not valued or recognised as an asset in the Statement of Financial Position (as allowed under transitional provisions forasset recognition contained in Australian Accounting Standard 27A – paragraph 108). The transitional provisions applicable to land under roadshave now been extended until 31 December 2006 (pursuant to AASB 1045, released in October 2002).8.3.5 Transport Assets (Roads Infrastructure)All transport assets as at 30 June 2001 were recorded at deemed cost of acquisition in accordance with AAS 38 (AASB 1041) paragraph10.4(a) of the Standard. All transport assets acquired after this date were recorded at cost.8.3.6 Stormwater Drainage AssetsAll stormwater drainage assets as at 30 June 2001 were recorded at deemed cost of acquisition in accordance with AAS 38 (AASB 1041)paragraph 10.4(a) of the Standard. All stormwater drainage assets acquired after this date were recorded at cost.8.3.7 Bulk EarthworksPrior to 1 July 1996, no values have been attributed to the bulk earthworks inherent in the road infrastructure, as <strong>Council</strong> had no reliable methodof estimating values. All bulk earthworks since 1 July 1996 and up to 30 June 2001 were recorded at deemed cost of acquisition in accordancewith AAS 38 (AASB 1041) paragraph 10.4(a) of the Standard. All bulk earthworks from 1 July 2001 were recorded at cost.8.4 Depreciation of Non Current AssetsAll assets having a limited useful life are systematically depreciated over their useful lives in a manner which reflects the consumption of theservice potential embodied in those assets.Depreciation is recognised on a straight-line basis using a standard range of rates which are reviewed annually. Major depreciation periods are:VehiclesEarthmoving equipmentOther plant and equipmentRural fire service equipmentOffice equipmentFurniture and fittingsProperty, plant and equipment leasedBuildingsConcrete bridgesRoads infrastructureStormwater drainage infrastructurePlayground equipmentPublic amenitiesSwimming poolLibrary booksLand improvementsBulk earthworksLand - <strong>Council</strong> ownedLand - <strong>Council</strong> controlledHeritage assets10 years3 to 10 years6 to 10 years5 years3 to 10 years7 to 10 years3 to 6 years33 to 100 years100 years14 to 42 years100 years5 to 10 years50 years33 years6 to 10 years25 to 100 yearsInfiniteInfiniteInfinite100 years
88 notes to the financial statements financial report9. Payables and Other Current Liabilities9.1 Goods and ServicesPayables are amounts due to external parties for the supply of goods and services and are recognised as liabilities when the goods and servicesare received. Creditors are normally paid 30 days after the month of invoice. No interest is payable on these amounts.9.2 Payments Received in Advance and DepositsAmounts received from external parties in advance of service delivery, and security deposits held against possible damage to <strong>Council</strong> assets, arerecognised as liabilities until the service is delivered or damage reinstated, or the amount is refunded as the case may be.10. BorrowingsLoans are carried at their principal amounts which represent the present value of future cash flows associated with servicing the debt.11. Employee EntitlementsIn June 2001, the Australian Accounting Standards Board (AASB) issued a new standard on ‘Employee Benefits’, AASB 1028. The newstandard replaces AAS 30 and will apply to annual reporting periods from 1 July 2002.Employee entitlements are accrued on a pro rata basis for annual leave, sick leave and long service leave and gratuities in respect of servicesprovided by employees up to the reporting date in accordance with AASB 1028. Such accruals are assessed at each reporting date, havingregard to current rates of pay and other factors including experience of employee departures, projected employee rates of pay and periods ofservice.The Standard requires liabilities in respect of wages and salaries, annual leave and sick leave (regardless of whether they are expected tobe settled within twelve months of reporting date) to be measured at their ‘nominal amounts’. The Standard also requires employee benefitsliabilities (other than wages and salaries, annual leave and sick leave) expected to be settled within twelve months of reporting date to bemeasured at their ‘nominal amounts’. The nominal basis of measurement uses remuneration rates that <strong>Council</strong> expects to pay as at eachreporting period and does not discount cash flows to their present value.Employee benefit liabilities (other than wages and salaries, annual leave and sick leave) expected to be settled more than twelve monthsafter reporting date to be measured at ‘present value’. The Standard requires the market yields on national government bonds to be used indetermining the present value of employee benefit liabilities.The superannuatprovide benefits to its employees.The following disclosures are made pursuant to AASB 1028, paragraph 6.10:<strong>Council</strong> makes employer superannuation contributions in respect of its employees to the Local <strong>Government</strong> Superannuation Scheme. Thescheme has two types of membership, each of which is funded differently.Accumulation Fund MembersThe accumulation fund receives both employer and employee contributions on a progressive basis. Employer contributions are normally basedon a fixed percentage of employee earnings in accordance with Superannuation Guarantee Legislation (9% in both <strong>2003</strong>/04 and 2002/03). Nofurther liability accrues to the employer as the superannuation benefits accruing to employees are represented by their share of the net assets ofthe fund.Defined Benefit Members<strong>Council</strong> makes employer contributions to the defined benefits categories of the scheme at rates determined by the scheme’s trustee. Therate is currently NIL% (NIL% in 2002-03) of superannuation salary. Employees also make member contributions to the fund. As such, assetsaccumulate in the fund to meet the member’s benefit, as defined in the Trust Deed, as they accrue.<strong>Council</strong> has an ongoing obligation to share in the future experience of the scheme. Favourable or unfavourable variations may arise should theexperience of the scheme differ from the assumptions made by the scheme’s actuary in estimating the scheme’s accrued benefits liability.The estimated position of the Local <strong>Government</strong> Superannuation Scheme at 30 June 2004 is as follows:Employer Liability $42,162,696Employer Assets $46,701,357Surplus $4,538,661The total number of equivalent full time employees at the beginning and end of the financial year were 1,041 and 1,077 respectively.12. Financial Instruments<strong>Council</strong> complies with Australian Accounting Standard AAS33 ‘Presentation and Disclosure of Financial Instruments’, the disclosures required bythat Standard are made in Note 6 (Cash Assets and Investment Securities), Note 7 (Receivables) and Note 15 (Financial Instruments).
notes to the financial statements financial report 8913. LeasesLease arrangements were accounted for in accordance with the Australian Accounting Standard AAS17 ‘Accounting for Leases’.<strong>Council</strong>’s rights and obligations under finance leases, that effectively transfer to <strong>Council</strong> substantially all of the risks and benefits incident toownership of the leased items, are initially recognised as assets and liabilities equal in amount to the present value of minimum lease payments.The assets are disclosed as assets under lease, and are amortised to expense over the period during which <strong>Council</strong> is expected to benefit fromthe use of the leased assets. Leased assets are being amortised over periods ranging from three to five years. Minimum lease payments areallocated between interest expense and reduction of the lease liability, according to the interest rate implicit in the lease.Lease liabilities are allocated between current and non current components. The principal component of lease payments due on or before theend of the succeeding year is disclosed as a current liability and the remainder of the lease liability is disclosed as a non current liability.In respect of operating leases, where the lessor substantially retains all of the risks and benefits incident to ownership of the leased items, leasepayments are charged to expense over the lease term.14. Budget InformationThe Statement of Financial Performance provides budget information on major income and expenditure items. Note 2(a) also provides budgetinformation of revenues and expenditures of major activities. Budget figures presented are those approved by <strong>Council</strong> at the beginning of thefinancial year and do not reflect <strong>Council</strong> approved variations throughout the year. Short explanations of the most significant variations are givenin Note 16.15. RoundingIn accordance with the Code of Accounting Practice all amounts shown in the Financial Statements were rounded to the nearest thousanddollars and are in Australian currency.16. Comparative FiguresWhere necessary, comparative figures have been adjusted to conform with changes in presentation in the current year.17. Transition to International Financial <strong>Report</strong>ing StandardsThe transition to International Financial <strong>Report</strong>ing Standards is being managed on an industry-wide basis at both a national and state level.A national working party has been established, and the <strong>NSW</strong> Department of Local <strong>Government</strong> in conjunction with the Local <strong>Government</strong>Accounting Advisory Group will identify significant changes affecting the industry.Due to the issue date of the Australian versions of the International Accounting Standards, the assessment and planning phase is continuing atthe date of preparation of these reports.It has been established that <strong>Council</strong> must identify certain properties as investment properties, and to apply these to the provisions of AASB 140.<strong>Council</strong> will be required to classify financial assets and liabilities in accordance with AASB 139. Additionally, <strong>Council</strong> will be required to recogniseassets and liabilities of state defined superannuation plans.Other matters will be identified by the abovementioned working parties during the current reporting period, and details will be provided in the2004-05 annual financial statements.
90 notes to the financial statements financial reportNote 2 (a) - FunctionsRevenues, expenses and assets have been directly attributed to the following functions and activitiesOriginalBudget2004$’000RevenuesActual2004$’000Actual<strong>2003</strong>$’000OriginalBudget2004$’000ExpensesActual2004$’000Actual<strong>2003</strong>$’000Governance - - - 4,618 5,686 5,321Administration 2,911 3,952 3,646 - - -Public order and safety 797 1,631 799 11,413 12,167 10,400Health 205 214 253 3,359 3,364 3,224Community services and education 1,722 1,717 1,913 4,486 4,872 7,526Housing and community amenities 10,029 11,422 11,510 59,037 50,568 46,517Water supplies - - - - - -Sewerage services - - - - - -Recreation and culture 9,010 9,527 7,990 45,959 47,660 53,950Fuel and energy - - - - - -Mining, manufacturing and construction - - - - - -Transport and communication 4,187 5,696 6,318 16,827 20,515 13,125Economic affairs 1,897 2,057 3,738 1,922 2,134 5,713Totals - functions 30,758 36,216 36,167 147,621 146,695 145,776General purpose revenues 104,663 105,308 102,888 - - -Totals 135,421 141,524 139,055 147,621 146,695 145,776The above functions conform to those used by the Australian Bureau of Statistics and provide a basis for comparison with other councils.Revenues, expenses and assets have been directly attributed to the following functions and activitiesOperating ResultGrantsincluded inrevenuesTotal assets held(current andnon current)OriginalBudget2004$’000Actual2004$’000Actual<strong>2003</strong>$’0002004$’000<strong>2003</strong>$’0002004$’000<strong>2003</strong>$’000Governance (4,618) (5,686) (5,321) - - - -Administration 2,911 3,952 3,646 150 137 106,191 98,008Public order and safety (10,616) (10,536) (9,601) 354 353 11,833 12,284Health (3,154) (3,150) (2,971) 20 21 614 633Community services and education (2,764) (3,155) (5,613) 1,425 1,849 10,685 10,450Housing and community amenities (49,008) (39,146) (35,007) 1,390 1,931 33,562 30,451Water supplies - - - - - - -Sewerage services - - - - - - -Recreation and culture (36,949) (38,133) (45,960) 1,051 1,102 261,030 259,817Fuel and energy - - - - - - -Mining, manufacturing and construction - - - - - - -Transport and communication (12,640) (14,819) (6,807) 921 256 700,402 712,108Economic affairs (25) (77) (1,975) 24 - 45,057 43,163Totals - functions (116,863) (110,749) (109,609) 5,335 5,649 1,169,374 1,166,914General purpose revenues 104,663 105,308 102,888 14,477 14,121 - -Totals (12,200) (5,441) (6,721) 19,812 19,770 1,169,374 1,166,914The above functions conform to those used by the Australian Bureau of Statistics and provide a basis for comparison with other councils.
notes to the financial statements financial report 91Note 2 (b) - Components of FunctionsThe activities relating to <strong>Council</strong> functions reported on in Note 2 (a) are as follows:AdministrationElections, meetings and elected members, corporate support, engineering and works administration, other support services.Public Order and SafetyFire protection, animal control, beach control, enforcement of local government regulations, emergency services, other.HealthAdministration and inspection, immunisations, food control, insect and vermin control, noxious plants, health centres, other.Community Services and EducationAdministration, family day care, child care, youth services, other services to families and children, aged and disabled, migrant services,Aboriginal services, other community services, education.Housing and Community AmenitiesHousing, town planning, domestic waste management services, other waste management services, street cleaning, other sanitation andgarbage, urban stormwater drainage, environmental protection, public cemeteries, public conveniences, other community amenities.Recreation and CulturePublic libraries, museums, art galleries, community centres, public halls, other cultural services, swimming pools, sporting grounds, parks andgardens, lakes, other sport and recreation.Transport and CommunicationUrban roads, sealed rural roads, unsealed rural roads, bridges, footpaths, aerodromes, parking areas, bus shelters and services, watertransport, works undertaken for Roads and Transport Authority, street lighting, other.Economic AffairsCamping areas, caravan parks, tourism and area promotion, industrial development promotion, saleyards and markets, real estate development,commercial nurseries, other business undertakings.
92 notes to the financial statements financial reportNote 3 - Expenses from Ordinary Activities(a) Employee cost2004$’000<strong>2003</strong>$’000Salaries and wages 58,348 56,405Employee leave entitlements 1,736 2,014Superannuation 2,587 2,252Workers’ compensation insurance 1,242 1,271Fringe benefits tax 234 205Training costs (excluding salaries) 761 626Other 506 301Less: capitalised and distributed costs (3,676) (3,536)Total operating employee costs 61,738 59,538Total number of employees 1,077 1,041(Full time equivalent at end of reporting period)(b) Borrowing costsInterest on overdraft 3 1Interest on loans 83 87Charges on finance leases 76 150Interest on other debts 415 -Gross interest charges 577 238Less: Borrowing costs capitalised - -Total interest charges 577 238(c) DepreciationPlant and equipment 2,202 2,454Office equipment 1,636 1,984Furniture and fittings 431 272Leased property, plant and equipment 874 862Land improvements 4,725 4,732Buildings 1,212 1,161Other structures 616 559Infrastructure• Roads, bridges and footpaths 16,271 16,244• Stormwater drainage 1,427 1,658Other assets• Heritage collections 5 5• Library books 770 626• Other 135 137Less: Capitalised and distributed costs - (1,293)Total depreciation and amortisation 30,304 29,401
notes to the financial statements financial report 93Note 3 - Expenses from Ordinary Activities (cont)(d) Other expenses2004$’000<strong>2003</strong>$’000Advertising 363 379Auditor’s renumeration• Audit services 52 55• Other services 10 10• Other auditors 97 33Bad doubtful debts 50 12Election expenses - 101Insurances 4,253 3,961Legal expenses• Planning and development 244 365• Other legal expenses 716 708Light, power and heating 1,074 849Mayoral allowance 55 51Members’ fees and allowances 272 254Members’ expenses 50 59Operating lease rentals - cancellable - -Operating lease rentals - non-cancellable• Minimum lease payments 2,223 7,004• Contingent rentals - -Street lighting 2,228 2,137Telephone and communications 915 479Water rates 577 679Contributions and donations 6,339 4,144Provision for self insurance claims (775) 544EPA levy 1,329 1,088Asset write-offs 457 -Other 2,179 1,116Less: Capitalised and distributed costs (96) -Total other expenses 22,612 24,028
94 notes to the financial statements financial reportNote 4 - Revenues from Ordinary Activities(a) Rates and annual chargesOrdinary rates2004$’000<strong>2003</strong>$’000• Residential 49,143 46,856• Farmland 304 318• Mining 484 762• Business 25,078 24,050Special rates75,009 71,986• Mall 677 651<strong>Annual</strong> charges677 651• Domestic waste management 10,997 12,85510,997 12,855Total rates and annual charges 86,683 85,492(b) User charges and feesUser charges• Domestic waste management 610 630• Other waste management 3,051 2,417Fees3,661 3,047Regulatory/statutory 4,444 4,269Discretionary• RTA claims - state roads 554 154• Crematorium and cemeteries 1,249 1,438• Car parking 271 244• Library 181 274• Marketing 788 616• Tourist parks 2,965 2,722• Recreation 2,870 2,746• Dining room 106 103• Halls and community centres 215 225• Sundry debtor works - 556• Other 887 1,00714,530 14,354Total user charges and fees 18,191 17,401(c) Investment revenuesInterest on overdue rates and charges 282 277Interest on investments attributable to:• Section 94 contributions 763 543• Other investments 3,190 2,894Other investment revenues - -Gross investment revenues 4,235 3,714Less: interest deducted from capitalised borrowing costs - -Total investment revenues 4,235 3,714(d) Other revenuesEx gratia payments in lieu of rates 10 11Fines 1,089 291
notes to the financial statements financial report 95Note 4 - Revenues from Ordinary Activities (cont)2004$’000<strong>2003</strong>$’000Insurance claims 749 73Lease rental 1,362 1,127EPA levy 169 150Sundry debtor income 506 546Outgoings reimbursement 302 277Other reimbursements 624 1Legal fees recovery (rates) 93 103Other 544 338Total other revenues 5,448 2,917(e) GrantsGeneral purpose (untied)2004$’000<strong>2003</strong>$’0002004$’000<strong>2003</strong>$’000• Financial assistance 12,257 11,913 - -• Pensioner rates subsidies (general) 2,220 2,208 - -Specific purpose• Community centres - - - 107• Bushfire and emergency services 75 286 269 152• Community services 1,472 1,597 - -• Floodplain management - 44 91 139• Library 426 317 - -• Revegetation and restoration 470 - 135 98• Voluntary purchase scheme - - 556 1,410• Windstorm damage - - 1,020 316• Other 566 1,002 255 181Total grants and subsidies 17,486 17,367 2,326 2,403(f) Contributions and donationsDeveloper contributionsOperatingCapital• Subdivider dedications - - - -• Roadworks - - 82 2• Drainage - - - 220• Traffic facilities - - 73 58• Parking - - 236 120• Open space - - 540 584• Community facilities - - 1,219 1,450• Other 62 79 83 407RTA contributions 1,241 889 1,999 2,120Paving - - - 255Kerb and gutter - - - 25Street lighting subsidy 370 361 - -Open space - - 23 22Community facilities - - - 16Community projects 257 51 - -Waste promotion education 127 120 - -
96 notes to the financial statements financial reportNote 4 - Revenues from Ordinary Activities (cont)2004$’000Operating<strong>2003</strong>$’0002004$’000Capital<strong>2003</strong>$’000<strong>City</strong> centre revitalisation - 70 - -<strong>Wollongong</strong> botanic garden 17 11 - -Bulli gateway project - - - 268Dendrobium development - - - 555Other 148 167 282 715Total contributions and donations 2,222 1,748 4,537 6,817Total grants and contributions 19,708 19,115 6,863 9,220Note 5 - Gain or Loss on Disposal of AssetsDisposal of property2004$’000<strong>2003</strong>$’000Proceeds from disposal 406 1,666Less: Carrying amount of assets sold 146 208Gain (loss) on disposal 260 1,458Disposal of plant and equipmentProceeds from disposal 3,369 3,599Less: Carrying amount of assets sold 3,233 3,861Gain (loss) on disposal 136 (262)Disposal of real estate development assetsProceeds from disposal - -Less: Carrying amount of assets sold - -Gain (loss) on disposal - -Disposal of investment securitiesProceeds from disposal - -Less: Carrying amount of assets sold - -Gain (loss) on disposal - -Total gain (loss) on disposal of assets 396 1,196
notes to the financial statements financial report 97Note 6 - Cash Assets and Investment SecuritiesCash assetsCurrent Non current Current Non currentCash on hand and at bank 188 - 557 -Deposits at call 1,000 - 4,420 -Short term deposits and bills, etc 23,185 15,717 32,514 15,338Managed funds 5,000 - - -Total cash assets 29,373 15,717 37,491 15,338Investment securities2004$’000<strong>2003</strong>$’000Term deposits - - 5 -Treasury corporation - - 6,884 -FRNs 12,000 - 11,000 -CLNs - 11,500 - -Total investment securities 12,000 11,500 17,889 -Total cash assets and investment securities 41,373 27,217 55,380 15,338Cash assets csubject to external restrictions that are not expected to be discharged during the next reporting period are classified as non current. Ourpermitted forms of investment in financial instruments are defined in an order made by the Minister of Local <strong>Government</strong> on 16 November 2000,and may broadly be described as ‘Trustee Securities’. Accordingly, credit risk is considered to be insignificant. Deposits and bills are with, orwere accepted by, banks and credit unions and bear rates of interest between 5.47% and 5.87% (<strong>2003</strong> - 4.70% and 5.20%). Floating rate notesare all with organisations with credit ratings that comply with the Minister’s Order and bear rates of rates of return between 5.96% and 6.88%(<strong>2003</strong> - 4.93% and 6.19%).Note 6 - Cash Assets and Investment Securities (cont)External restrictionsIncluded in liabilitiesNotes Current Non current Current Non current• Unexpended loans 230 - 437 -• Self insurance - workers’ compensation - - 6,884 -• Administration building - 10,769 - -• Deposits and bonds 1,686 - - -OtherRestricted Cash Assets and Investment Securities2004$’000<strong>2003</strong>$’0001,916 10,769 7,321 -• Developer contributions 17 3,323 14,601 2,826 13,334• RTA contributions 136 - 685 -• Unexpended grants 14 5,158 - 5,778 -• Domestic waste management 2,105 1,847 4,425 2,004• Private subsidies 2,019 - 1,350 -12,741 16,448 15,064 15,338Total external restrictions 14,657 27,217 22,385 15,338Total internal restrictions 18,339 - 21,817 -Total unrestricted 8,377 - 11,178 -Total cash assets and investment securities 41,373 27,217 55,380 15,338In prior years, components of Section 94 plans expended in advance of contributions were not included in Note 17. Section 94 regulations allowinternal borrowings within a plan. The opening balance figures and transactions for <strong>2003</strong>-04 now reflect the net cash positions of each plan.
98 notes to the financial statements financial reportNote 6 - Cash Assets and Investment Securities (cont)External restrictionsDetails of Movements and Utilisation of Restricted Cash Assets and Investment SecuritiesNotesOpeningbalance 30June <strong>2003</strong>$’000Transfers torestriction$’000MovementsTransfers fromrestriction$’000Closingbalance 30June 2004$’000• Developer contributions 17 16,160 3,118 1,354 17,924• RTA contributions 685 - 549 136• Unexpended grants 5,778 1,948 2,568 5,158• Domestic waste management 6,429 1,984 4,461 3,952• Unexpended loans 437 - 207 230• Self Insurance - Workers’ Compensation 6,884 - 6,884 -• Administration building - 10,769 - 10,769• Deposits and bonds - 1,686 - 1,686• Private subsidies 1,350 951 282 2,019Total external restrictions 37,723 20,456 16,305 41,874External restrictions arise pursuant to section 409(3) of the Local <strong>Government</strong> Act, the Local <strong>Government</strong> (Financial Management) Regulation1999 and other applicable legislation. Further information relating to developer contributions is provided in Note 17 and unexpended grants inNote 14. Amounts raised for domestic waste management may only be used for those purposes.Internal restrictionsDetails of Movements and Utilisation of Restricted Cash Assets and Investment SecuritiesOpeningbalance 30June <strong>2003</strong>$’000Transfers torestriction$’000MovementsTransfers fromrestriction$’000Closingbalance 30June 2004$’000• MacCabe Park development 316 150 - 466• Building maintenance 6,150 2,250 4,993 3,407• Future projects/property development 13,105 726 2,840 10,991• Beaton park athletic track 244 150 - 394• Flood mitigation works 1,431 - 406 1,025• North Dalton park development 102 35 - 137• Shared pathways and cycleways 200 - 156 44• Extraordinary insurance claims 269 1,049 769 549• Community safety - 153 - 153• Litter infringements - 2 - 2• Disabled parking infringements - 21 - 21• Future super contribution - 1,000 - 1,000• Deferred projects - 150 - 150Total internal restrictions 21,817 5,686 9,164 18,339Internal restrictions arise pursuant to resolutions of <strong>Council</strong> to set aside reserves of cash resources either relating to liabilities recognised in thesereports or to fund future expenditure for the stated purpose. Such reserves are not permitted to exceed the amounts of cash assets and cashinvestments not otherwise restricted.Note on opening balance restatementDuring <strong>2003</strong>-04, <strong>Council</strong> reviewed the opening balance cash position and determined at its meeting on 24 May 2004 that the opening balancefor the future projects internal restriction should have been increased by $6 million. This adjustment could have been made as a transaction inthe current year, however as it was an adjustment of the previous years cash position, it was deemed more appropriate to restate theopening position.
notes to the financial statements financial report 99Note 6 - Cash Assets and Investment Securities (cont)External restrictionsDetails of Movements and Utilisation of Restricted Cash Assets and Investment SecuritiesNotesLessthan 1 year$’000Proposed utilisation of restrictionBetween 1 and5 years$’000Greaterthan 5 years$’000• Developer contributions 17 3,323 - 14,601• RTA contributions 136 - -• Unexpended grants 5,158 - -• Domestic waste management 2,105 - 1,847• Unexpended loans 230 - -• Self insurance - Workers’ Compensation - - -• Administration building - 10,769 -• Deposits and bonds 1,686 - -• Private subsidies 2,019 - -Total external restrictions 14,657 10,769 16,448External restrictions arise pursuant to section 409(3) of the Local <strong>Government</strong> Act, the Local <strong>Government</strong> (Financial Management) Regulation1999 and other applicable legislation. Further information relating to developer contributions is provided in Note 17 and unexpended grants inNote 14. Amounts raised for domestic waste management may only be used for those purposes.Internal restrictionsDetails of Movements and Utilisation of Restricted Cash Assets and Investment SecuritiesLessthan 1 year$’000Proposed utilisation of restrictionBetween 1 and5 years$’000Greaterthan 5 years$’000• MacCabe Park development 466 - -• Building maintenance 2,399 1,008 -• Future projects/property development 2,010 484 8,497• Beaton park athletic track 394 - -• Flood mitigation works 503 - 522• North Dalton park development 115 - 22• Shared pathways and cycleways 44 - -• Extraordinary insurance claims 502 47 -• Community safety 153 - -• Litter infringements - - 2• Disabled parking infringements - - 21• Future super contribution - - 1,000• Deferred projects 150 - -Total internal restrictions 6,736 1,539 10,064Internal restrictions arise pursuant to resolutions of <strong>Council</strong> to set aside reserves of cash resources either relating to liabilities recognised in thesereports or to fund future expenditure for the stated purpose. Such reserves are not permitted to exceed the amounts of cash assets and cashinvestments not otherwise restricted.Note on opening balance restatementDuring <strong>2003</strong>-04, <strong>Council</strong> reviewed the opening balance cash position and determined at its meeting on 24 May 2004 that the opening balancefor the future projects internal restriction should have been increased by $6 million. This adjustment could have been made as a transaction inthe current year, however as it was an adjustment of the previous years cash position, it was deemed more appropriate to restate theopening position.
100 notes to the financial statements financial reportNote 7 - ReceivablesCurrent Non Current Current Non CurrentRates and annual charges 1,992 1,704 1,689 1,585Interest and extra charges 210 - 300 -User charges and fees 2,853 - 2,308 -Accrued interest on investments 648 - 371 -Accrued revenues 894 - 611 -<strong>Government</strong> grants and subsidies 3,207 - 985 -Private subsidies 13 - 86 -GST refund due from ATO 624 - 692 -Other 49 - 101 -Total 10,490 1,704 7,143 1,585Less: Provision for doubtful debts2004$’000<strong>2003</strong>$’000• Rates and annual charges - - - -• User charges and fees 65 - 20 -10,425 1,704 7,123 1,585Aggregate asset arising from employee benefits 59 49Restricted receivablesWater supply - - - -Sewerage services - - - -Domestic waste management 515 - 933 -Other - - - -Total external restrictions 515 - 933 -Unrestricted receivables 9,910 1,704 6,190 1,585Total receivables 10,425 1,704 7,123 1,5851. Rates and <strong>Annual</strong> ChargesRates are secured by underlying properties.Interest is charged on overdue rates at 9.00% (<strong>2003</strong> 9.00%). Rates are due for payment on 31 August 2004, 30 November 2004, 28 February2005 and 31 May 2005.Overdue rates are those not paid within 1 day of the due date. The amount of the overdue debts upon which interest is charged is $4,095,003(<strong>2003</strong> $3,781,668).2. User Charges and FeesUser charges and fees are unsecured. The credit risk for this class of debtor is 100% of the carrying value. A provision for doubtful debts inrespect of the class of debtor has already been provided in an amount of $64,968.3. <strong>Government</strong> Grants and Subsidies<strong>Government</strong> grants and subsidies have been guaranteed.4. Private SubsidiesPrivate works were only undertaken where a deposit was received and the works secured against those deposits.
notes to the financial statements financial report 101Note 8 - Inventories and Other Assets2004$’000<strong>2003</strong>$’000Current Non current Current Non currentInventoriesStores and materials 112 - 108 -Real estate developments 279 5,734 - 6,013Other - - - -Total inventories 391 5,734 108 6,013Other assetsPrepayments 147 - 1,542 -Total other assets 147 - 1,542 -Real estate developments(Valued at the lower of cost and net realisable value)Residential - 5,734 - 5,734Industrial and commercial 279 - - 279Total real estate for resale 279 5,734 - 6,013Represented by:Acquisition costs - 892 - 892Other properties - book value 279 4,842 - 5,121279 5,734 - 6,013Less: Provision for under-recovery - - - -Total real estate for resale 279 5,734 - 6,013Restrictions exist in respect of the following:Inventories• Water supplies - - - -• Sewerage services - - - -• Domestic waste management - - - -• Other - - - -Other Assets• Water supplies - - - -• Sewerage services - - - -• Domestic waste management - - - -• Other - - - -- - - -There are no external or internal restrictions in relation to inventories and other assets.
102 notes to the financial statements financial reportNote 9 (a) - Property, Plant and EquipmentAtcostAt fairvalue<strong>2003</strong> 2004$’000 $’000AccumdepnCarryingamountAtcostAt fairvalueAccumdepnCarryingamountPlant and equipment 28,433 - 16,162 12,271 30,928 - 18,364 12,564Office equipment 8,066 - 3,876 4,190 9,702 - 5,512 4,190Furniture and fittings 12,665 - 9,666 2,999 12,636 - 10,097 2,539Leased plant and equipment 5,800 - 3,216 2,584 6,653 - 4,090 2,563Land• <strong>Council</strong> owned (freehold) 34,095 - - 34,095 34,369 - - 34,369• <strong>Council</strong> controlled 110,248 - - 110,248 113,541 - - 113,541• Non deprec land improvements - - - - - - - -• Land under roads - - - - - - - -Land improvements - depreciable 121,941 - 37,646 84,295 123,286 - 42,371 80,915Buildings 113,311 - 11,121 102,190 124,358 - 12,333 112,025Other structures 12,603 - 3,096 9,507 14,463 - 3,712 10,751Infrastructure• Roads, bridges, footpaths 686,921 - 110,388 576,533 693,700 - 126,659 567,041• Bulk earthworks (non-deprec.) 2,098 - - 2,098 2,098 - - 2,098• Stormwater drainage 142,719 - 9,791 132,928 142,941 - 11,218 131,723• Water supply network - - - - - - - -• Sewerage network - - - - - - - -Other assets• Heritage collections 502 - 54 448 502 - 59 443• Library books 4,517 - 1,983 2,534 5,444 - 2,753 2,691• Other 9,452 - 6,547 2,905 11,612 - 6,682 4,930Totals 1,293,371 - 213,546 1,079,825 1,326,233 - 243,850 1,082,383<strong>Council</strong> acquired its administration building in September <strong>2003</strong> for a deferred settlement of $12.2 million (plus $1.2 million GST), discounted to$10.3 million (GST excl) in current dollar terms. <strong>Council</strong> has already claimed back the applicable GST.
notes to the financial statements financial report 103Note 9 (a) - Property, Plant and Equipment (cont)Assetpurchases<strong>Council</strong>restructureMovements During the Year$’000AssetdisposalsdepreciationWrite downs(ref Note 3)NetrevaluationPlant and equipment 5,909 - (3,233) (2,202) (181) -Office equipment 1,653 - - (1,636) (17) -Furniture and fittings - - - (431) (29) -Leased plant and equipment 853 - - (874) - -Land• <strong>Council</strong> owned (freehold) 399 - (125) - - -• <strong>Council</strong> controlled 3,314 - (21) - - -• Non deprec land improvements - - - - - -• Land under roads - - - - - -Land improvements - depreciable 1,345 - - (4,725) - -Buildings 11,257 - - (1,212) (210) -Other structures 1,872 - - (616) (12) -Infrastructure• Roads, bridges, footpaths 6,779 - - (16,271) - -• Bulk earthworks (non-deprec.) - - - - - -• Stormwater drainage 222 - - (1,427) - -• Water supply network - - - - - -• Sewerage network - - - - - -Other assets• Heritage collections - - - (5) - -• Library books 927 - - (770) - -• Other 2,168 - - (135) (8) -Totals 36,698 - (3,379) (30,304) (457) -<strong>Council</strong> acquired its administration building in September <strong>2003</strong> for a deferred settlement of $12.2 million (plus $1.2 million GST), discounted to$10.3 million (GST excl) in current dollar terms. <strong>Council</strong> has already claimed back the applicable GST.
104 notes to the financial statements financial reportNote 9 (b) - Restricted Property, Plant and EquipmentWater supplyAtcostAtvaluationAccumdepnCarryingamountPlant and equipment - - - -Office equipment - - - -Furniture and fittings - - - -Leased plant and equipment - - - -Land• <strong>Council</strong> owned (freehold) - - - -• <strong>Council</strong> controlled - - - -• Non depreciable land improvements - - - -Land improvements - depreciable - - - -Buildings - - - -Other structures - - - -Water supply infrastructure• OtherTotal water supply - - - -Sewerage servicesPlant and equipment - - - -Office equipment - - - -Furniture and fittings - - - -Leased plant and equipment - - - -Land• <strong>Council</strong> owned (freehold) - - - -• <strong>Council</strong> controlled - - - -• Non depreciable land improvements - - - -Land improvements - depreciable - - - -Buildings - - - -Other structures - - - -Sewerage infrastructure• Roads, bridges, footpaths - - - -• Other - - - -Total sewerage services - - - -Domestic waste managementPlant and equipment 1,057 - 826 231Office equipment 82 - 44 38Furniture and fittings - - - -Leased plant and equipment - - - -Land2004$’000• Operational 772 - - 772• Community 172 - - 172• Non depreciable land improvements - - - -Land improvements - depreciable 3,011 - 521 2,490Buildings 1,444 - 99 1,345Other structures 136 - 63 73• Other 2,461 - 52 2,409Total domestic waste 9,135 - 1,605 7,530Total restrictions 9,135 - 1,605 7,530
notes to the financial statements financial report 105Note 9 (b) - Restricted Property, Plant and Equipment (cont)Water supplyAtcostAtvaluationAccumdepnCarryingamountPlant and equipment - - - -Office equipment - - - -Furniture and fittings - - - -Leased plant and equipment - - - -Land• <strong>Council</strong> owned (freehold) - - - -• <strong>Council</strong> controlled - - - -• Non depreciable land improvements - - - -Land improvements - depreciable - - - -Buildings - - - -Other structures - - - -Water supply infrastructure• Other - - - -Total water supply - - - -Sewerage servicesPlant and equipment - - - -Office equipment - - - -Furniture and fittings - - - -Leased plant and equipment - - - -Land• <strong>Council</strong> owned (freehold) - - - -• <strong>Council</strong> controlled - - - -• Non depreciable land improvements - - - -Land improvements - depreciable - - - -Buildings - - - -Other structures - - - -Sewerage infrastructure• Roads, bridges, footpaths - - - -• Other - - - -Total sewerage services - - - -Domestic waste managementPlant and equipment 832 - 346 486Office equipment 71 - 20 51Furniture and fittings 1 - - 1Leased plant and equipment - - - -Land<strong>2003</strong>$’000• Operational 990 - - 990• Community 200 - - 200• Non depreciable land improvements - - - -Land improvements - depreciable 4,692 - 254 4,438Buildings 1,230 - 45 1,185Other structures 207 - 79 128• Other 1,167 - 37 1,130Total domestic waste 9,390 - 781 8,609Total restrictions 9,390 - 781 8,609
106 notes to the financial statements financial reportNote 10 - Liabilities2004$’000<strong>2003</strong>$’000PayablesCurrent Non current Current Non currentGoods and services 7,732 - 5,979 -Payments received in advance 600 - 339 -Accrued expenses 1,455 - 4,101 -Advances 119 - 289 -Deposits, retentions and bonds 1,686 - 2,680 -Other 817 - 40 -Total payables 12,409 - 13,428 -BorrowingsLoans 218 1,048 211 1,266Finance lease liability 1,434 1,264 2,125 1,845Deferred payment liabilities - 11,906 - -Other - - - -Total borrowings 1,652 14,218 2,336 3,111Provisions<strong>Annual</strong> leave 4,481 4,919 4,114 4,743Sick leave 428 1,908 486 2,160Long service leave 1,397 12,271 1,250 12,311Self insurance claims 985 568 2,068 1,495Workers’ compensation 1,264 5,674 1,635 5,136Total provisions 8,555 25,340 9,553 25,845Movements in provision - self insurance claimsOpening balance 3,563 3,019Add: Additional amounts recognised - 2,143(Less): Payments (1,235) (1,599)Add (Less): Remeasurement adjustments (775) -Add (Less): Transfer on <strong>Council</strong> restructure - -Closing balance 1,553 3,563Movements in provision - workers’ compensationCurrent andNon currentCurrent andNon currentCurrent andNon currentCurrent andNon currentOpening balance 6,771 6,884Add: Additional amounts recognised 272 309(Less): Payments (105) (422)Add (Less): Remeasurement adjustments - -Closing balance 6,938 6,771
notes to the financial statements financial report 107Note 10 - Liabilities (cont)Liabilities relating to restricted assetsDomestic waste management:2004$’000<strong>2003</strong>$’000Current Non current Current Non currentPayables 1,027 - 191 -Interest bearing liabilities - - - -Provisions 147 458 227 529Subtotal 1,174 458 418 529Other -Payables 1,686 - - -Interest bearing liabilities - - - -Provisions - - 1,635 5,136Subtotal 1,686 - 1,635 5,136Total 2,860 458 2,053 5,665
108 notes to the financial statements financial reportNote 11 - Reconciliation to Cash Flow Statement(a) Reconciliation of CashCash assethe end of the reporting period as shown in the Statement of Cash Flows is reconciled to the related items in the Statement of FinancialPosition as follows:Notes2004$’000<strong>2003</strong>$’000Total cash assets 6 45,090 52,829Less: Bank overdraft 10 - -Balances per Statement of Cash Flows 45,090 52,829(b) Reconciliation of change in net assets to cash from operating activitiesChange in net assets resulting from operations (5,441) (6,721)Minority interest in operating result - -Add: Depreciation 30,304 29,401Increase in provision for doubtful debts 45 1Increase in employee benefits - 2,092Increase in other provisions - 431Decrease in receivables - 3,387Decrease in inventories - 16Decrease in other current assets 1,395 555Increase in payables 2,014 -Increase in accrued expenses payable - 1,060Increase in other payables - 20228,317 30,424Less: Decrease in employee benefits 1,503 -Increase in receivables 3,466 -Increase in inventories 4 -Decrease in payables - 1,763Decrease in accrued expenses payable 2,646 -Decrease in other payables 387 -Gain on Sale of Assets 396 1,196Non cash capital grants and contributions - 64Net cash provided by (or used in) operations 19,915 27,401(c) Non Cash financing and investing activitiesAcquisition of assets by means of:• Bushfire grants - 64• Finance leases 853 2,172• Deferred payment arrangements 10,268 -(d) Financing arrangementsUnrestricted access was available at balance date to the following lines of credit:11,121 2,236Bank overdraft facility 300 300The bank overdraft facilities may be draws at any time and may be terminated by the bank without notice. Interest rates on overdrafts arevariable while the rates for loans are fixed for the period of the loan.
notes to the financial statements financial report 109Note 12 - Commitments for Expenditure(a) Capital commitmentsCapital expenditure committed for at the reporting date but notrecognised in the financial statements as liabilities:2004$’000<strong>2003</strong>$’000Land - 433Buildings 3,408 2,509Infrastructure 2,185 3,659Office equipment 1,117 2,069Plant and equipment - -These expenditures are payable:6,710 8,670Not later than one year 6,710 8,670Later than one year and not later than 5 years - -Later than 5 years - -(b) Other expenditure commitmentsOther expenditure committed for (excluding inventories) at thereporting date but not recognised in the financial statementsas liabilities:6,710 8,670Audit services 157 200Waste management services 18,425 17,252Other 2,089 667These expenditures are payable:20,671 18,119Not later than one year 11,296 10,412Later than one year and not later than 5 years 9,375 7,707Later than 5 years - -(c) Finance lease commitmentsCommitments under finance leases at the reporting date areas follows:20,671 18,119Not later than one year 1,521 2,200Later than one year and not later than 5 years 1,377 1,901Later than 5 years - -Minimum lease payments 2,898 4,101Less: Future finance charges (200) (131)Net lease liability 2,698 3,970Representing lease liabilities:Current 1,434 2,125Non current 1,264 1,845(d) Operating lease commitments (non-cancellable)Commitments under non-cancellable operating leases at thereporting date but not recognised in the financial statements arepayable as follows:Total future minimum lease payments2,698 3,970Not later than one year 371 12,041Later than one year and not later than 5 years 423 -Later than 5 years - -794 12,041<strong>Council</strong> has entered into non-cancellableoperating leases for various items of computerequipment and other office equipmment.(i) Contingent rental payments have beendetermined in accordance with <strong>Council</strong>’sannual management plans which are publiclynotified in May/June each year.(ii) The lease imposes no addtional restrictionson <strong>Council</strong> in relation to additional debt orfuther leasing.
110 notes to the financial statements financial reportNote 13 - Statement of Performance MeasurementCurrent ratioAmountsIndicators<strong>2003</strong> 2002 2001Current assets $52,336 2.31:1 2.53:1 2.54:1 3.23:1Current liabilities $22,616Unrestricted current ratioUnrestricted current assets* $37,164 1.880:1 1.76:1 1.62:1 1.87:1Current liabilities not relating to restricted assets $19,756* as defined in the CodeDebt service ratioNet debt service cost* $13,682 10.57% 2.30% 1.95% 3.13%Operating revenue $129,430* as defined in the CodeNote on significant increase in debt service ratioThe debt service ratio for the <strong>2003</strong>-04 ledger year is significantlyhigher than ratios in previous years due to the $10,769K transfer tosinking fund relating to the deferred payment arrangement for thepurchase of the <strong>Council</strong> Administration building.Rate and annual charges coverage ratioRates and annual charges revenues $86,683 61.25% 61.48% 60.07% 61.83%Total revenues $141,524Rates and annual charges outstanding percentageRates and annual charges outstanding $3,906 4.31% 4.00% 4.15% 3.88%Rates and annual charges collectible $90,6322004Note 14 - Conditions Over Grants and ContributionsGrants and contributions which were obtained on the condition that they be expended for specified purposes or in a future period, but whichare not yet expended in accordance with those conditions, are as follows:Grants Contrib Grants ContribUnexpended at the close of the previous reporting period 5,778 16,846 5,270 17,528Less: Expended during the current period from revenues recognised inprevious reporting periodsSection 94/64 developer contributions - 1,356 - 2,526Roads infrastructure - 673 - 262Other 2,578 - 2,120 -Subtotal 2,578 2,029 2,120 2,788Plus: Grant balances not recognised in prior year 130 - - -Plus: Amounts recognised as revenues in this reporting period but not yetexpended in accordance with the conditions2004$’000<strong>2003</strong>$’000Section 94/64 developer contributions - 3,121 - 3,056Roads infrastructure - 122 - 656Other 1,828 - 2,628 -Subtotal 1,958 3,243 2,628 3,712Unexpended at the close of this reporting period and held asrestricted assets 5,158 18,060 5,778 18,452Net increase (decrease) in restricted assets in the current reporting period (620) 1,214 508 924
notes to the financial statements financial report 111Note 15 - Financial InstrumentsInterest rate risk exposure2004Financial assetsFloatinginterestrate‘000≤ 1 year‘000> 1 year≤ 5 years‘000> 5 year‘000Noninterestbearing‘000Cash assets 5,170 39,902 - - 18 45,090Investment securities 12,000 - 11,500 - - 23,500Receivables - 2,202 1,704 - 6,681 10,587Other assets - - - - - -Total 17,170 42,104 13,204 - 6,699 79,177Weighted average interest rate 6.22% 5.74% 5.92% 5.39%Financial liabilitiesPayables - - - - 10,954 10,954Interest bearing liabilities - - 12,713 459 - 13,172Finance lease liabilities - 889 1,309 - 500 2,698Total - 889 14,022 459 11,454 26,824Weighted average interest rate 6.70% 5.44% 5.20% 3.16%<strong>2003</strong>Financial assetsCash assets 541 52,272 - - 16 52,829Investment securities 11,000 6,889 - - - 17,889Receivables - 1,989 1,585 - 4,152 7,726Other assets - - - - - -Total 11,541 61,150 1,585 - 4,168 78,444Weighted average interest rate 5.45% 4.98% 9.00% 4.84%Financial liabilitiesPayables - - - - 9,327 9,327Interest bearing liabilities - 3 - 1,474 - 1,477Finance lease liabilities - 300 2,400 - 1,270 3,970Total - 303 2,400 1,474 10,597 14,774Weighted average interest rate 6.35% 5.84% 6.03% 1.68%Total‘000Credit Risk ExposureCredit risk represents the loss that would be recognised if counterparties fail to perform as contracted. The maximum credit risk on financialassets of the <strong>Council</strong> is the carrying amount, net of any provision for doubtful debts. Except as detailed in Note 7 in relation to individual classesof financial assets, exposure is concentrated within the <strong>Council</strong>’s boundaries within the State of New South Wales, and there is no materialexposure to any individual debtor.
112 notes to the financial statements financial reportNote 15 - Financial Instruments (cont)Reconciliation of financial assets and liabilitiesNet financial assets from previous page2004$’000<strong>2003</strong>$’000Financial assets 79,177 78,444Financial liabilities 26,824 14,77452,353 63,670Non financial assets and liabilitiesAccrued interest on investments 648 371Accrued revenues 894 611Inventories 6,125 6,121Property, plant and equipment 1,082,383 1,079,825Other assets 147 1,542Accrued expenses (1,455) (4,101)Provisions (33,895) (35,398)1,054,847 1,048,971Net assets per Statement of Financial Position 1,107,200 1,112,641Net Fair ValueAll carrying values approximate fair value for all recognised financial instruments.With the exception of investments, there is no recognised market for the financial assets of the <strong>Council</strong>.Note 16 - Significant Variations From Original Budget<strong>Council</strong>’s original budget comprised part of the management plan adopted by <strong>Council</strong> on 2 June <strong>2003</strong>. The original projections on which thebudget was based have been affected by decisions and new grant programs initiated by state and federal governments, changing economicactivity, the weather, and by decisions made by the <strong>Council</strong>. This Note sets out the details of material variations between the original budget andactual results for the Statement of Financial Performance. Material favourable (F) and unfavourable (U) variances represent amounts of 10% ormore of the budgeted amount.1. Borrowing CostsBorrowing costs exceeded budget by $489K (U) (655.7%) as a result of $415K (U) accrued interest charges associated with the deferredpayment arrangement for the purchase of the administration building not originally budgeted for and interest expenses associated with financeleases for major items of plant being included in Materials and Contracts for budget purposes 74K (U).2. Other ExpensesThe increase in Other Expenses of $4,099K (U) (22.1%) over the original budget is principally a result of:Additional legal fees $457K (U) – Due primarily in relation to development approvals, a contractor dispute and a number of other one-offlegal issues.EPA Levy payments $346K (U) - Reflecting the increased activity and volume of landfill at waste tipping facilities.Review of asset holdings $456K (U) - During the migration of data to the new Financial Management Information System a review of assetholdings was undertaken with a resulting write off of items that were no longer held or were deemed to have no future economic value.Additional expenditure associated with grant funding $446K (U) - <strong>Council</strong> received grant funds from the state government in a prior yearfor the relocation of sporting facilities at Brandon Park. The timing of this expenditure is dependent on activity undertaken by the various sportingbodies that use the current facility.New projects introduced $228K (U) - New projects introduced during the financial year resulted in an increase of $228K against the originalbudget projections for Other Expenses.
notes to the financial statements financial report 113Note 16 - Significant Variations from Original Budget (cont)Lease payments $300K (U) - Lease payments associated with information technology equipment were treated as finance leases in the originalbudget, consistent with the treatment in prior years. New leases initiated during this year have been of an operating nature and hence actualexpenditure is reflected as Other Expenses.Change in classification of expenditure (budget v actual) $1,787K (U) - In addition to the above variations which have had an impact on theresult, there were a number of classification variations between Other Expenses and Materials and Contracts which do not impact on the overallresult. <strong>Council</strong> implemented a new financial management system during this financial year which allowed for a more consistent classificationof expenditure and income. Examples of classification variations include telephone and data line rentals and mobile phone contracts ($474K),contribexpenditure reported as Other Expenses.3. Gain or Loss on Disposal of AssetsThe original budget anticipated loss on disposal of assets of $603K (U). The actual result was a profit of $396K (F) resulting in a positive varianceof $999K (F). The majority of this improvement is attributable to the change to a reduced holding period for motor vehicles which has resulted inhigher proceeds on disposal and a negotiated trade-in agreement with a supplier.4. Investment RevenuesInvestment revenues exceed the original budget by $1,632K (F) (62.7%). The improved result is due to increased levels of cash holdings, betterthan anticipated market rates and more active management of <strong>Council</strong>’s investment portfolio. A major factor contributing to the larger cashholding is the deferred settlement of the <strong>Council</strong> administration building purchase, originally scheduled for early September <strong>2003</strong>.5. Other RevenuesOther revenue shows a favourable variation of $2,373K (F) (77.2%) when compared to the original budget. This is primarily due to:Additional parking infringement income $816K (F) - The original budget provided for $273K for infringement revenue whilst actual incomeachieved wasand there was no historical trend information available. In addition there has been an expansion of this activity beyond the original budget withadditional resources being utilised.Insurance reimbursement of insurance claims $349K (F) - The original budget provided for $400K for insurance recovery whilst actualincome achieved was $749K. This was the result of the settlement of a number of claims that were in dispute and subsequent recovery frominsurers.Change in classification of revenue (budget v actual) 808K (F) - In addition to the above variations which have had an impact on theresult there were a number of classification variations between Other Revenues and User Fees and Charges that do not impact on the overallresult. <strong>Council</strong> implemented a new financial management system during this financial year which allowed for a more consistent classification ofexpenditure and income. Material examples of classification variations include Sundry Debtor Income ($506K) and Outgoings Reimbursements($302K).6. Grants and Contributions – CapitalCapital grants and contributions indicate a favourable variation of $1,416K (F) (26.0%) when compared to the original budget. The majorportion of this variation relates to an understatement of anticipated S94 contributions of $1,589K (F). There has been a lack of historical data onpotential S94 contribution trends on which to base future projections. The difficulty in predicting potential collections is further exacerbated bythe fact that a significant portion of recent development in the <strong>Wollongong</strong> have been of an infill nature and as such are subject to a greater levelof variability. In addition the original budget included $300K (U) of grant funding for the development of a Bushfire Station at Bulli that did notproceed.In addition to the above mentioned items, minor favourable and unfavourable variations occurred throughout the year in a number of revenueand expense items. All variations have been monitored and reported to <strong>Council</strong> on a regular basis.
114 notes to the financial statements financial reportNote 17 - Statement of Contribution PlansPurposeOpeningbalance$’000Contributionsreceivedduring yearCash$’000Summary of contributionsNon cash$’000Interestearnedduring year$’000Expendedduringyear$’000Expendedinadvance$’000Held asrestrictedasset$’000Worksprovidedto date$’000Drainage - - - - - - - -Roads 1,791 82 - 72 534 - 1,411 2,807Traffic facilities 1,325 73 - 60 73 - 1,385 770Parking 235 236 - 12 - - 483 226Open space 1,167 540 - 61 278 949 1,491 3,671Community facilities 10,357 1,219 - 488 157 - 11,907 5,139Other 873 145 - 48 117 963 948 1,553Subtotal S94 under plans 15,748 2,295 - 741 1,159 1,912 17,625 14,166S94 not under Plans 412 - - 18 131 - 299 3,580S64 contributions - - - - - - - -Total contributions 16,160 2,295 - 759 1,290 1,912 17,924 17,746Note: The above summary of contribution plans represents the total of <strong>Council</strong>’s individual contribution plans. Individual plan details areshown below.PurposeContribution plan number 1 - Open space embellishment and community facilitiesOpeningbalance$’000Contributionsreceivedduring yearCash$’000Non cash$‘000Interestearnedduring year$’000Expendedduringyear$’000Expendedinadvance$’000Held asrestrictedasset$’000Worksprovidedto date$’000Drainage - - - - - - - -Roads - - - - - - - -Traffic facilities - - - - - - - -Parking - - - - - - - -Open space 1,474 533 - 80 278 414 1,809 1,826Community facilities 8,489 1,143 - 402 157 - 9,877 4,984Other - - - - - - - -Total contributions 9,963 1,676 - 482 435 414 11,686 6,810PurposeOpeningbalance$’000Contribution plan number 2 - Traffic and roadworksContributionsreceivedduring yearCash$’000Non cash$’000Interestearnedduring year$’000Expendedduringyear$’000Expendedinadvance$’000Held asrestrictedasset$’000Worksprovidedto date$’000Drainage - - - - - - - -Roads - - - - - - - -Traffic facilities 774 50 - 35 53 - 806 699Parking - - - - - - - -Open space - - - - - 414 - -Community facilities - - - - - - - -Other - - - - - - - -Total contributions 774 50 - 35 53 414 806 699
notes to the financial statements financial report 115Note 17 - Statement of Contribution Plans (Cont)PurposeOpeningbalance$’000Contribution plan number 3 - Car parkingContributionsreceivedduring yearCash$’000Non cash$’000Interestearnedduring year$’000Expendedduringyear$’000Expendedinadvance$’000Held asrestrictedasset$’000Worksprovidedto date$’000Drainage - - - - - - - -Roads - - - - - - - -Traffic facilities - - - - - - - -Parking 235 226 - 12 - - 473 226Open space - - - - - - - -Community facilities - - - - - - - -Other - - - - - - - -Total contributions 235 226 - 12 - - 473 226PurposeOpeningbalance$’000Cash$’000Contribution plan number 4 - StudiesContributionsreceivedduring yearNon cash$’000Interestearnedduring year$’000Expendedduringyear$’000Expendedinadvance$’000Held asrestrictedasset$’000Worksprovidedto date$’000Drainage - - - - - - - -Roads - - - - - - - -Traffic facilities - - - - - - - -Parking - - - - - - - -Open space - - - - - - - -Community facilities - - - - - - - -Other 229 101 - 11 107 80 234 629Total contributions 229 101 - 11 107 80 234 629PurposeOpeningbalance$’000Cash$’000Contribution plan number 5 - HorsleyContributionsreceivedduring yearNon cash$’000Interestearnedduring year$’000Expendedduringyear$’000Expendedinadvance$’000Held asrestrictedasset$’000Worksprovidedto date$’000Drainage - - - - - - - -Roads 1,791 82 - 72 534 - 1,411 2,807Traffic facilities 401 10 - 18 - - 429 -Parking - - - - - - - -Open space (307) 7 - (11) - 311 310 1,245Community facilities 1,868 76 - 86 - - 2,030 155Other 644 44 - 37 10 883 714 924Total contributions 4,397 219 - 202 544 1,194 4,894 5,131
116 notes to the financial statements financial reportNote 17 - Statement of Contribution Plans (Cont)PurposeOpeningbalance$’000Contributionsreceivedduring yearCash$’000Other contribution plansNon cash$’000Interestearnedduring year$’000Expendedduringyear$’000Expendedinadvance$’000Held asrestrictedasset$’000Worksprovidedto date$’000Drainage - - - - - - - -Roads - - - - - - - -Traffic facilities 150 13 - 7 20 10 150 71Parking - 10 - - - - 10 -Open space - - - (8) - 224 (8) 600Community facilities - - - - - - - -Other - - - - - - - -Total contributions 150 23 - 1 20 224 152 671PurposeOpeningbalance$’000Cash$’000Contributions not under plansContributionsreceivedduring yearNon cash$’000Interestearnedduring year$’000Expendedduringyear$’000Expendedinadvance$’000Held asrestrictedasset$’000Worksprovidedto date$’000Drainage 8 - - - - - 8 33Roads 52 - - 2 - - 54 191Traffic facilities - - - - - - - 197Parking 347 - - 16 131 - 232 526Open space 2 - - - - - 2 -Community facilities - - - - - - - 2,126Other 3 - - - - - 3 507Total contributions 412 - - 18 131 - 299 3,580Inegulationsallow internal borrowings within a plan. The opening balance figures and transactions for <strong>2003</strong>-04 now reflect the net cash positions ofeach plan.
notes to the financial statements financial report 117Note 18 – Assets and Liabilities Not Recognised in theStatement of Financial Position1. Administration BuildingFor a number of years <strong>Council</strong> had leased its administration building at 41 Burelli Street. The lease of the premises was set to expire on 7September <strong>2003</strong>. <strong>Council</strong> made an offer to the owner and agreed to the purchase of the land, building and all its inclusions. Completion ofpurchase was made on 5 September <strong>2003</strong> on the basis of a deferred settlement to 5 September 2006. The discounted value of the deferredseteflecting theeffect of the former lease on the price paid for the asset. Had the substance of this linkage caused <strong>Council</strong> to recognise the asset during theterm of the lease, then the net book value of the asset would not be materially different from the acquisition value taken up in the current period.2. Public Liability and Professional Indemnity Insurance<strong>Council</strong> was a member of a cooperative of six councils known as Premsure for the first eight years of Premsure’s operation. The cooperativeoperated to pool the councils’ funds for payment of liability and professional indemnity claims as an alternative to insurance coverage. <strong>Council</strong>withdrew from continuing membership of Premsure on 31 October 1996 and since that date has made alternative arrangements for securing itsown insurance coverage.In anticipation that <strong>Council</strong> may be called upon to contribute funds in addition to the original contributions to the Premsure pool, for the purposeof paying claims, <strong>Council</strong> entered into a contract of insurance with St Paul-Re. The contract of insurance, known as Premsure DysfunctionalInsurance Coverage, provided <strong>Council</strong> with a maximum of $3.5 million of coverage to pay any calls for additional contributions that may bemade by Premsure upon <strong>Council</strong>. This policy responded fully to both calls by Premsure and to Premsure’s dysfunction. The St Paul-Re policyexpired during January 2004 and <strong>Council</strong> will now be required to fund calls to Premsure without reimbursement from St Paul-Re.Up to the time that <strong>Council</strong> withdrew from Premsure, HIH had been the insurer for Premsure claims that exceeded $1,000,000. After that date<strong>Council</strong> plCompany were both placed into provisional liquidation and <strong>Council</strong> secured liability and professional indemnity coverage from QBE Insurance(English division) effective 30 April 2001.The Australian <strong>Government</strong> agreed to contribute 50% of the cost of settlement of local government liability claims on HIH on the condition thatthe state government contributes the remaining 50%. At the time of collapse of HIH, this <strong>Council</strong> had $893,153 of fund-paid property claimsfor damage caused by 1998 floods. The government scheme to financially assist councils is limited to compensation for liability claims only, notproperty claims.The state government has recently indicated its conclusion of an agreement with the Australian government which compensates councils forliability claims only according to the amount of the outstanding claims and the amount of rate revenue of the council. Given that this <strong>Council</strong>does not have liability claims outstanding against HIH, <strong>Council</strong> will be unable to recover any of its outstanding claims against HIH under theadopted scheme.The Independent Insurance Company (in receivership) remains responsible for payment of that portion of each of <strong>Council</strong>’s claims incurred whichexceeded $25,000 for the period 31 October 1996 to 30 April 2001. The total of <strong>Council</strong>’s unrecovered liability claims is currently estimatedto be $774,000. At this time <strong>Council</strong> is unable to determine how much, if any, it will be able to recover from the remaining assets of theIndependent Insurance Company.3. ISR Property ClaimsThe storm event of August 1998 caused damage to <strong>Council</strong>’s buildings, contents and infrastructure including roads, drains, bridges andculverts. The wording of <strong>Council</strong>’s contract of insurance with HIH (in liquidation) provided coverage for all of these categories of losses. <strong>Council</strong>has lodged a notice of claim upon HIH for damage to its buildings, contents and infrastructure. HIH liquidators propose to distribute someremaining assets of the company to claimants during the second half of 2004, however the amount of this distribution is currently unknown.The amount of the claim for infrastructure is $893,153 which is the difference between actual rectification costs (excluding betterment) and thefunds which have been reimbursed to <strong>Council</strong> by the state government for rectification purposes.Doubt exists as to whether <strong>Council</strong> will be able to recover monies owing for property claims made upon HIH prior to its collapse. The stategovernment has been requested to include these claims in conjunction with the liability claims negotiations with the Australian <strong>Government</strong> buthas not confirmed the inclusion of such claims within its compensation proposals.4. Bank Guarantee<strong>Council</strong> has guaranteed two bank loans to third parties. No loss is anticipated under these bank guarantees.<strong>Council</strong> has provided security to WorkCover for outstanding workers’ compensation claims liability in the form of a bank guarantee to the sum of$8,802,000.
118 independent report to wollongong city council financial report
independent report to wollongong city council financial report 119<strong>Report</strong> on the Conduct of the Auditfor the year ended 30 June 2004 - Section 417 (3)We have completed our audit of the financial reports for the <strong>Council</strong> of the <strong>City</strong> of <strong>Wollongong</strong> for the year ended 30 June 2004, in accordancewith Section 415 of the Local <strong>Government</strong> Act, 1993. Our audit opinion under Section 417(2) has been issued to <strong>Council</strong>.The <strong>Council</strong> is responsible for the preparation and presentation of the financial reports and the information they contain. The financial reportsconsist of the general purpose financial report and <strong>Council</strong>’s statement in the approved form required by Sections 413(2)(a) and (c) respectivelyof the Local <strong>Government</strong> Act 1993.Our audit has been conducted in accordance with Australian Auditing Standards to provide reasonable assurance as to whether the financialreports are free of material misstatement. Our procedures included examination, on a test basis, of evidence supporting the amounts and otherdisclosures in the financial reports, and the evaluation of accounting policies and significant accounting estimates. These procedures have beenundertaken to form an opinion as to whether, in all material respects, the financial reports are presented fairly in accordance with AccountingStandards and other mandatory professional reporting requirements (Urgent Issues Group Consensus Views) and statutory requirements so asto present a view which is consistent with our understanding of the <strong>Council</strong>’s financial position, the results of its operations and its cash flow.Flowing from our audit there are a number of comments we wish to raise concerning the trends in <strong>Council</strong>’s finances. These comments are setout below.Operating Result<strong>Council</strong>’s Statement of Financial Performance shows a deficit for the year of $5.4 million which is down from the previous year of $6.7 million.Some of the reasons for this movement include -• A general improvement in operating revenue relative to operating expenditure ($3.6 million)• Lower capital grants and contributions received ($2.4 million)Cash Position<strong>Council</strong>’s overall cash position fell from $71 million to $69 million during the period under review. The following table highlights the compositionof cash -June 2004$’000June <strong>2003</strong>$’000Externally restricted 43,570 39,329Internally restricted 18,339 21,817Unrestricted 6,681 9,57268,590 70,718The increase in externally restricted cash is mainly the result of monies set aside to pay for the administration building ($10.8 million) as offset bythe replacement of the WorkCover deposit for workers’ compensation ($6.9 million) with a bank guarantee.Internal restrictions (reserves) and unrestricted cash fell but overall liquidity remained stable.Working Capital<strong>Council</strong>’s net current assets decreased from $37.2 million to $29.7 million during the period. In other words, the assets that <strong>Council</strong> is expectedto realis ong financialposition, however, it must be remembered that this balance includes items which are restricted in their use. The value of net current assetstherefore needs to be adjusted in order to establish <strong>Council</strong>’s Available Working Capital, as follows:The Available Working Capital upon which <strong>Council</strong> could build its 2004-05 budget was $4.7 million.June 2004$’000June <strong>2003</strong>$’000Net current assets 29,720 37,230Less: External restrictions 14,657 22,385Internal restrictions 18,339 21,817(3,276) (6,972)Add: Current liabilities to be funded from 2004/05 budget 7,958 8,186Available working capital 4,682 1,214
120 independent report to wollongong city council financial reportPerformance IndicatorsThe financial report below discloses a number of indicators in Note 13 which are detailed below:June 2004%June <strong>2003</strong>%Unrestricted current ratio 188 169Debt service ratio 10.57 2.30Rate coverage ratio 61 61Rates outstanding ratio 4.3 4.0Unrestricted current ratioThe ratio has increased over the previous year and remains well above the accepted industry benchmark of 100%.Debt service ratioThe debt service ratio increased due to the transfer of $10.8 million into a sinking fund reserve for the settlement of the administration buildingpurchase due in 2006.Rate coverage ratioThe rate coverage ratio indicates that <strong>Council</strong> continues to have a relatively high reliance on rates as a source of income. The acceptedbenchmark is 50%.Rates outstanding ratioThe rates outstanding ratio fell but remained well below the accepted industry benchmark of 5%.Assessment<strong>Council</strong> is considered to be in a sound and stable financial position. The payment for the administration building is fully covered by asinking fund.GeneralThe books of accounts and records inspected by us have been kept in an accurate and conscientious manner. We take this opportunity to thankthe CEO together with his staff for the cooperation and courtesy extended to us during the course of our audit.Yours faithfullyPricewaterhouseCoopersJ A GordonPartner28 September 2004
special purpose financial reports financial report 121Statement by <strong>Council</strong>lors and ManagementMade Pursuant to the Local <strong>Government</strong> Code of Accounting Practiceand Financial <strong>Report</strong>ingThe attached annual financial statements have been drawn up in accordance with:• <strong>NSW</strong> <strong>Government</strong> Policy Statement ‘Application of National Competition Policy to Local <strong>Government</strong>’,• Department of Local <strong>Government</strong> guidelines ‘Pricing and Costing for <strong>Council</strong> Businesses: A Guide to Competitive Neutrality’,• The Local <strong>Government</strong> Code of Accounting Practice and Financial <strong>Report</strong>ing.To the best of our knowledge and belief, these reports:• Present fairly the financial position and operating result for each of <strong>Council</strong>’s declared business activities for the year, and• Accord with <strong>Council</strong>’s accounting and other records.We are not aware of any matter that would render the reports false or misleading in any way.Signed in accordance with a resolution of <strong>Council</strong> made on 27 September 2004.Cr A DarlingLord MayorCr V Zanotto<strong>Council</strong>lorR OxleyCEOS PayneResponsible Accounting Officer
122 special purpose financial reports financial reportStatement of Financial Performance by Business Activitiesfor the year ended 30 June 2004Expenses from ordinary activitiesWaste disposal(Cat. 1)$’000Tourist parks(Cat. 1)$’000Propertymanagement(Cat. 2)$’000Health andfitness(Cat.2)$’0002004 <strong>2003</strong> 2004 <strong>2003</strong> 2004 <strong>2003</strong> 2004 <strong>2003</strong>Employee costs 968 948 1,047 1,005 124 117 1,670 1,673Materials and contracts 529 1,435 388 580 24 72 206 338Borrowing costs - - 83 86 - - - -Depreciation and amortisation 136 394 348 464 240 266 99 131Other operating expenses 2,382 1,981 1,082 744 427 386 957 778Loss on disposal of assets - - - - - - - -NCP imputation payments 84 89 63 66 355 277 76 78Total 4,099 4,847 3,011 2,945 1,170 1,118 3,008 2,998Revenue from ordinary activitiesRates and annual charges - - - - - - - -User charges and fees 3,269 3,061 3,018 2,723 - - 1,731 1,742Interest received - - - - - - - -Grants and contributions - operating - - - - - - 3 -Other operating revenues 158 158 - - 1,571 1,372 59 54Gain on disposal of assets - - - - - - - -Total 3,427 3,219 3,018 2,723 1,571 1,372 1,793 1,796Ordinary activities result beforecapital amounts (672) (1,628) 7 (222) 401 254 (1,215) (1,202)Grants and contributions - capital - - - - - - 256 75Surplus (deficit) before tax (672) (1,628) 7 (222) 401 254 (959) (1,127)Corporate taxation equivalent - - 2 - 120 76 - -Surplus (deficit) for year (672) (1,628) 5 (222) 281 178 (959) (1,127)Add: Accumulated profits brought forward 8,182 9,721 9,020 9,176 24,600 24,069 1,955 3,004Adjustments for amounts unpaidBusiness ActivitiesNCP imputation payments retained 84 89 63 66 355 277 76 78Corporate taxation equivalent - - 2 - 120 76 - -Less: Dividends paid - - - - - - - -Accumulated surplus 7,594 8,182 9,090 9,020 25,356 24,600 1,072 1,955Rate of return on capital (4.85% (14.13%) 0.71% (1.07%) 1.34% 0.84% (14.73%) (14.40%)Notional subsidy from <strong>Council</strong> for5.87% ROC (<strong>2003</strong> - 5.01% ROC) 1,485 2,205 651 776 1,352 1,254 1,699 1,620This statement is to be read in conjunction with the attached note.
special purpose financial reports financial report 123Statement of Financial Performance by Business Activitiesfor the year ended 30 June 2004 (cont)Expenses from ordinary activitiesCrematorium andcemeteries(Cat. 2)$’000Marketing(Cat. 2)$’000W’gong city truckand plant(Cat. 2)$’0002004 <strong>2003</strong> 2004 <strong>2003</strong> 2004 <strong>2003</strong>Employee costs 967 963 1,667 1,434 51 47Materials and contracts 343 404 986 728 69 78Borrowing costs - - - 2 - -Depreciation and amortisation 132 146 23 28 2 2Other operating expenses 409 366 535 136 19 4Loss on disposal of assets - - - - - -NCP imputation payments 130 134 29 29 - -Total 1,981 2,013 3,240 2,357 141 131Revenue from ordinary activitiesRates and annual charges - - - - - -User charges and fees 1,311 1,443 788 634 131 153Interest received - - - - - -Grants and contributions - operating - - - - - -Other operating revenues 8 6 - - - -Gain on disposal of assets - - - - - -Total 1,319 1,449 788 634 131 153Ordinary activities result beforecapital amounts (662) (564) (2,452) (1,723) (10) 22Grants and contributions - capital - - - - - -Surplus (deficit) before tax (662) (564) (2,452) (1,723) (10) 22Corporate taxation equivalent - - - - - 7Surplus (deficit) for year (662) (564) (2,452) (1,723) (10) 15Add: Accumulated profits brought forward 8,924 9,354 (4,857) (3,163) 22 -Adjustments for amounts unpaidBusiness ActivitiesNCP imputation payments retained 130 134 29 29 - -Corporate taxation equivalent - - - - - 7Less: Dividends paid - - - - - -Accumulated surplus 8,392 8,924 (7,280) (4,857) 12 22Rate of return on capital (4.92%) (4.17%) (87.95%) (61.22%) (200.00%) 314.29%Notional subsidy from <strong>Council</strong> for 5.87% ROC (<strong>2003</strong>- 5.01% ROC) 1,452 1,242 2,616 1,862 10 N/AThis statement is to be read in conjunction with the attached note.
124 special purpose financial reports financial reportStatement of Financial Position by Business Activitiesfor the year ended 30 June 2004Current assetsWaste disposal(Cat. 1)$’000Tourist parks(Cat. 1)$’000Propertymanagement(Cat. 2)$’000Health and fitness(Cat.2)$’0002004 <strong>2003</strong> 2004 <strong>2003</strong> 2004 <strong>2003</strong> 2004 <strong>2003</strong>Cash assets 4,012 6,473 1 1 - - 9 9Investment securities - - - - - - - -Receivables 567 565 3 - 281 250 14 19Inventories - - - - - - - -Other - - - - - - - -Total current assets 4,579 7,038 4 1 281 250 23 28Non current assetsCash assets - - - - - - - -Investment securities - - - - - - - -Receivables - - - - - - - -Inventories - - - - - - - -Other - - - - - - - -Property, plant and equipment 13,851 11,525 12,626 12,769 29,860 30,100 8,247 8,346Total non current assets 13,851 11,525 12,626 12,769 29,860 30,100 8,247 8,346Total assets 18,430 18,563 12,630 12,770 30,141 30,350 8,270 8,374Current liabilitiesPayables - - 21 25 - - 5 6Interest bearing liabilities - - 218 211 - - - -Provisions 238 204 177 156 25 13 174 136Total current liabilities 238 204 416 392 25 13 179 142Non current liabilitiesPayables - - - - - - - -Interest bearing liabilities - - 1,048 1,266 - - - -<strong>Council</strong> loan account 10,246 9,792 1,875 1,871 4,738 5,703 6,773 5,993Provisions 352 385 201 221 22 34 246 284Total non current liabilities 10,598 10,177 3,124 3,358 4,760 5,737 7,019 6,277Total liabilities 10,836 10,381 3,540 3,750 4,785 5,750 7,198 6,419Net assets 7,594 8,182 9,090 9,020 25,356 24,600 1,072 1,955EquityBusiness ActivitiesOpening retained earnings 8,182 9,721 9,020 9,176 24,600 24,069 1,955 3,004Accumulated surplus (588) (1,539) 70 (156) 756 531 (883) (1,049)Total equity 7,594 8,182 9,090 9,020 25,356 24,600 1,072 1,955This statement is to be read in conjunction with the attached note.
special purpose financial reports financial report 125Statement of Financial Position by Business Activitiesfor the year ended 30 June 2004 (cont)Current assetsCrematorium andcemeteries(Cat. 2)$’000Marketing(Cat. 2)$’000W’gong city truckand plant(Cat. 2)$’0002004 <strong>2003</strong> 2004 <strong>2003</strong> 2004 <strong>2003</strong>Cash assets 35 34 - - - -Investment securities - - - - - -Receivables 92 103 439 355 10 68Inventories - - - - - -Other - - - - - -Total current assets 127 137 439 355 10 68Non current assetsCash assets - - - - - -Investment securities - - - - - -Receivables - - - - - -Inventories - - - - - -Other - - - - - -Property, plant and equipment 13,463 13,529 2,788 2,811 5 7Total non current assets 13,463 13,529 2,788 2,811 5 7Total assets 13,590 13,666 3,227 3,166 15 75Current liabilitiesPayables 2 2 84 87 - -Interest bearing liabilities - - - 47 - -Provisions 167 106 219 142 - -Total current liabilities 169 108 303 276 - -Non current liabilitiesPayables - - - - - -Interest bearing liabilities - - 19 19 - -<strong>Council</strong> loan account 4,824 4,369 9,924 7,389 3 53Provisions 205 265 261 339 - -Total non current liabilities 5,029 4,634 10,204 7,747 3 53Total liabilities 5,198 4,742 10,507 8,023 3 53Net assets 8,392 8,924 (7,280) (4,857) 12 22EquityBusiness ActivitiesOpening retained earnings 8,924 9,354 (4,857) (3,163) 22 -Accumulated surplus (532) (430) (2,423) (1,694) (10) 22Total equity 8,392 8,924 (7,280) (4,857) 12 22This statement is to be read in conjunction with the attached note.
126 notes to the special purpose financial reports financial reportNote 1 - Significant Accounting Policies for the year ended 30 June 2004A statement summarising the supplemental accounting policies adopted in the preparation of the SPFR for National Competition Policyreporting purposes follows.These financial statements are a Special Purpose Financial <strong>Report</strong> (SPFR) prepared for use by <strong>Council</strong> and Department of Local <strong>Government</strong>.For the purposes of these statements, the <strong>Council</strong> is not a reporting entity.This special purpose financial report, unless otherwise stated, has been prepared in accordance with applicable Australian AccountingStandards, other authoritative pronouncements of the Australian Accounting Standards Board, Urgent Issues Group Consensus Views, theLocal <strong>Government</strong> Act and Regulations, the Local <strong>Government</strong> Code of Accounting Practice and Financial <strong>Report</strong>ing and the Local <strong>Government</strong>Asset Accounting Manual.The statements are also prepared on an accruals basis. They are based on historic costs and do not take into account changing money valuesor, except where specifically stated, current values of non current assets. Certain taxes and other costs, appropriately described, were imputedfor the purposes of the National Competition Policy.National Competition Policy<strong>Council</strong> has adoptedapplied throughout Australia at all levels of government. The framework for its application is set out in the June 1996 <strong>Government</strong> Policystatement on the ‘Application of National Competition Policy to Local <strong>Government</strong>’. The ‘Pricing and Costing for <strong>Council</strong> Businesses A Guide toCompetitive Neutrality’ issued by the Department of Local <strong>Government</strong> in July 1997 has also been adopted.The pricing and costing guidelines outline the process for identifying and allocating costs to activities and provide a standard of disclosurerequirements. These disclosures are reflected in <strong>Council</strong>’s pricing and/or financial reporting systems and include taxation equivalents; <strong>Council</strong>subsidies; return on investments (rate of return); and dividends paid.Declared Business ActivitiesIn accordance with Pricing and Costing for <strong>Council</strong> Businesses - A Guide to Competitive Neutrality, <strong>Council</strong> has declared that the following areto be considered as business activities:Category 1NameWaste DisposalTourist ParksBrief Description of ActivityManages the disposal of solid waste generated within the city.Operation, management and development of tourist parks at Bulli, Corrimal and Windang.Category 2NameProperty ManagementHealth and FitnessCrematorium and CemeteriesMarketing<strong>Wollongong</strong> <strong>City</strong> Truck and PlantBrief Description of ActivityManagement of <strong>Council</strong>’s property portfolio, including the negotiation and administration ofcommercial and residential leases and licences.Responsible for the management and upkeep of <strong>Council</strong>’s leisure centres.Provision of quality crematorium, cemetery and memorial facilities and services.Provision of a range of marketing services, including graphic design, copywriting, audio visualproduction, sign writing, market research and customer surveys.Provision of fleet maintenance and spare parts service in accordance with the agreementwith Scania.(i) Taxation Equivalent Payments<strong>Council</strong> is liable to pay various taxes and financial duties. Where this is the case, they are disclosed as a cost of operations (General PurposeFinancial <strong>Report</strong>) just like all other costs. However, where <strong>Council</strong> does not pay some taxes which are generally paid by private sectorbusinesses, such as income tax, these equivalent tax payments were applied to all <strong>Council</strong> nominated business activities and are reflected in theSpecial Purpose Financial <strong>Report</strong>s. For the purposes of disclosing comparative information relevant to the private sector equivalent the followingtaxation equivalents were applied to all <strong>Council</strong> nominated business activities (this does not include <strong>Council</strong>’s non business activities):
notes to the special purpose financial reports financial report 127Notional Rate Applied2004 <strong>2003</strong>Corporate Tax Rate 30% 30%Land Tax $100 + 1.7% of the excess over $317,000 $100 + 1.7% of the excess over $261,000Payroll Tax 6.0% ($600,000 annual wages threshold) 6.0% ($600,000 annual wages threshold)Income taxAn income tax equivalent was applied on the profits of the business. Whilst income tax is not a specific cost for the purpose of pricing a good orservice, it needs to be taken into account in terms of assessing the rate of return required on capital invested. Accordingly, the return on capitalinvested is set at a pre-tax level gain/(loss) from ordinary activities before capital amounts as would be applied by a private sector competitor– that is, it should include a provision equivalent to the corporate income tax rate, currently 30% (<strong>2003</strong> – 30%).Income tax is only applied where a positive gain/(loss) from ordinary activities before capital amounts was achieved. Since the taxation equivalentis notional, that is, it is payable to ‘<strong>Council</strong>’ as the owner of business operations, it represents an internal payment and has no effect on theoperations of <strong>Council</strong>.Accordingly, there is no need for disclosure of internal charges in the General Purpose Financial <strong>Report</strong>s. The rate applied of 30% is theequivalent company tax rate prevalent as at balance date.Local government rates and chargesA calculation of the equivalent rates and charges for all Category 1 businesses were applied to all assets owned or exclusively used by thebusiness activity.Loan and debt guarantee feesThe debt guarantee fee is designed to ensure that <strong>Council</strong> business activities face ‘true’ commercial borrowing costs in line with private sectorcompetitors. In order to calculate a debt guarantee fee, <strong>Council</strong> has determined what the differential borrowing rate would have been betweenthe commercial rate and <strong>Council</strong>’s borrowing rate for its business activities.(ii) Subsidies<strong>Government</strong> policy requires that subsidies provided to customers and the funding of those subsidies must be explicitly disclosed. Subsidiesoccur where <strong>Council</strong> provides services on a less than cost recovery basis. This option is exercised on a range of services in order for <strong>Council</strong> tomeet its community service obligations. The overall effect of subsidies is contained within the Statement of Financial Performance by BusinessActivities.(iii) Return on Investments (Rate of Return)The policy statement requires that councils with Category 1 businesses ‘would be expected to generate a return on capital funds employed thatis comparable to rates of return for private businesses operating in a similar field’. Funds are subsequently available for meeting commitmentsor financing future investment strategies. The rate of return is disclosed for each of <strong>Council</strong>’s business activities on the Statement of FinancialPerformance by Business Activities.(iv) Dividends<strong>Council</strong> is not required to pay dividends to either itself as owner of a range of businesses or to any external entities. Consequently, any formof dividend payment is purely notional. Dividend payments to <strong>Council</strong> are also restricted to those activities which do not levy special rates orcharges (ie domestic waste management).Domestic waste management is the only restricted activity operated by <strong>Council</strong>. The Local <strong>Government</strong> Act 1993 requires that all operatingsurpluses or deficits of these funds are credited/debited to the equity of those funds.
128 independent auditor’s report to wollongong city council financial report
special schedules financial report 129Special Schedule No 1 Net Cost of ServicesActivityCorporate GovernanceExpensesGrouptotals$’000Operating expenses Operating revenues Net cost of servicesRevenues -ordinaryactivitiesCapital rev.ordinaryactivitiesGrouptotalsNetcostsGrouptotalsOmbudsman and internal audit 178 - - - - 178 -Executive management group 1,721 - 5 - - 1,716 -Support to external organisations 147 - - - - 147 -Corporate planning 124 - - - - 124 -Business improvement 311 - - - - 311 -Civic activities and internatl relations 726 - 135 - - 591 -Corporate Governance - 3,208 140 - 140 - 3,068Community and Cultural ServicesYouth services 671 - 123 - - 548 -Planning and service development 206 - 59 - - 147 -Transport services 475 - 411 - - 64 -Respite services 760 - 597 - - 163 -Community development services 767 - 259 - - 508 -Volunteering 157 - 164 - - (7 ) -Children and family services 188 - 38 - - 151 -Housing 63 - 49 - - 14 -Social planning 115 - - - - 115 -Facilities for children 37 - 6 - - 30 -Facilities for aged 31 - 13 - - 18 -District multi purpose 658 - 816 - - (158) -Local multi purpose (NC and CC) 143 - (13) - - 156 -Community halls 129 - 28 - - 101 -Miscellaneous centres 112 - 8 - - 104 -Facilities support 334 - 4 - - 330 -Incorporated cultural facilities 1,297 - 96 - - 1,201 -Cultural program development 795 - 140 - - 654 -Community and Cultural Services - 6,936 2,796 - 2,796 - 4,141Commercial DevelopmentsProperty development 212 - 23 - - 189 -Tourist parks 2,210 - 3,018 - - (807) -Crematorium and cemeteries 1,403 - 1,319 - - 84 -Property management 181 - 1,571 - - (1,390) -Statutory property 282 - 557 - - (275) -Commercial Developments - 4,289 6,487 - 6,487 - (2,199)<strong>City</strong> Planning and DevelopmentNew release area planning 178 - 217 - - (39) -Land use strategies 389 - 122 - - 267 -Urban renewal and civic improvement 1,017 - 49 - - 968 -Heritage 60 - - - - 60 -
130 special schedules financial reportSpecial Schedule No 1 Net Cost of Services (cont)ActivityExpenses$’000Operating expenses Operating revenues Net cost of servicesGrouptotalsRevenues -ordinaryactivitiesCapital rev.ordinaryactivitiesGrouptotalsNetcostsGrouptotalsTraffic and transport planning 135 - - - - 135 -Traffic engineering and management 382 - 231 - - 152 -Development assessment advice 110 - - - - 110 -Subdivision approval determination 1,568 - 164 - - 1,404 -Subdivisions compliance 1,065 - 18 - - 1,047 -Development assessment 1,326 - 2,748 - - (1,423) -Building assessment 286 - 682 - - (396) -Compliance inspections - - 32 - - (32) -<strong>City</strong> centre and Crown St Mall 1,250 - 905 - - 345 -<strong>City</strong> Planning and Development - 7,767 5,170 - 5,170 - 2,597Environmental Management ProgramNatural asset protection 15 - 248 - - (233) -Environmental Management Program - 15 248 - 248 - (233)Environment and HealthHygiene inspections and registrations 318 - 110 - - 208 -Health promotion 83 - - - - 83 -Swimming pools and cooling towers 125 - 95 - - 30 -Environmental protection 228 - 11 - - 217 -Companion animal management 451 - 151 - - 301 -Management of unauthorised development 94 - - - - 94 -Parking control 614 - 1,024 - - (410) -Environmental management and enhancement 678 - 54 - - 623 -Pollution minimisation 507 - 30 - - 476 -Environmental monitoring 116 - - - - 116 -Environment and Health - 3,214 1,476 - 1,476 - 1,737InfrastructureBuilding construction 12 - - - - 12 -Building maintenance 4,282 - 151 - - 4,131 -Building operations 3,531 - 109 - - 3,422 -Plant and vehicles 5,373 - 574 - - 4,799 -Workshop 521 - 104 - - 417 -Commercial plant activities 202 - 131 - - 71 -Stores 472 - 52 - - 420 -Coastal rehabilitation works 202 - 135 - - 67 -Engineering services 518 - 171 - - 348 -Programmed hazard reduction 4 - - - - 4 -Community education 4 - - - - 4 -Emergency planning and management 3,007 - 344 - - 2,663 -Design services 2,156 - 73 - - 2,083 -Street lighting 2,257 - 370 - - 1,887 -Flood mitigation 620 - 655 - - (35) -
special schedules financial report 131Special Schedule No 1 Net Cost of Services (cont)ActivityExpenses$’000Operating expenses Operating revenues Net cost of servicesGrouptotalsRevenues -ordinaryactivitiesCapital rev.ordinaryactivitiesGrouptotalsNetcostsGrouptotalsStormwater management 67 - - - - 67 -Asset management planning 18,828 - - - - 18,828 -Infrastructure asset assessment 120 - - - - 120 -Maintenance 8,162 - 2,966 - - 5,197 -Construction 95 - 2,206 - - (2,111) -Works depots 705 - - - - 705 -Materials testing and analysis 158 - (2) - - 160 -Technical advice 66 - - - - 66 -Research programs 72 - - - - 72 -Infrastructure 51,435 8,039 8,039 43,395Library ServicesDirectories and information 40 - 4 - - 36 -Library administration 1,056 - 75 - - 981 -Branch libraries 1,541 - 74 - - 1,467 -Central library 1,847 - 582 - - 1,266 -Acquisitions 851 - - - - 851 -Library Services 5,335 735 735 4,601Organisational ServicesEmployee services 1,313 - - - - 1,313 -Industrial relations 47 - - - - 47 -Organisational development 1,957 - 150 - - 1,808 -Personnel services 3,980 - - - - 3,979 -Financial accounting 2,280 - 729 - - 1,551 -Funds management 55 - 3,953 - - (3,899) -Rates 1,900 - 78,148 - - (76,248) -Management accounting 484 - - - - 484 -IT Procurement services 368 - 22 - - 346 -IT Support services 1,673 - - - - 1,673 -Organisational services and maintenance 3,781 - 109 - - 3,672 -<strong>Council</strong> administration 1,116 - - - - 1,116 -Legal services 1,022 - 590 - - 432 -Risk management services 3,257 - 513 - - 2,744 -Internal clients 2,544 - - - - 2,544 -Commercial clients 273 - 663 - - (390) -Affiliated clients - - 125 - - (125) -Mapping services 932 - 10 - - 923 -Economic development 894 - - - - 894 -Communications and promotions 304 - 1 - - 302 -Media 464 - - - - 464 -Organisational Services - 28,644 2,912 - 2,912 - (56,370)
132 special schedules financial reportSpecial Schedule No 1 Net Cost of Services (cont)ActivityRecreation andNatural ResourcesExpensesGrouptotals$’000Operating expenses Operating revenues Net cost of servicesRevenues -ordinaryActivitiesCapital rev.ordinaryActivitiesGrouptotalsNetcostsGrouptotalsParks and open spaces 9,948 - 1,144 - - 8,805 -Sportsfields and facilities 1,317 - 472 - - 845 -Playgrounds 340 - - - - 340 -Botanic garden 1,787 - 194 - - 1,593 -Natural resource management 839 - 312 - - 527 -Aquatic services 4,917 - 637 - - 4,280 -Leisure centres 2,163 - 2,031 - - 132 -<strong>City</strong>swim 59 - - - - 59 -Recreation andNatural Resources - 21,371 4,790 - 4,790 - 16,581Waste ManagementDomestic waste 9,342 - 11,536 - - (2,193) -Street and gutter cleaning 1,755 - - - - 1,755 -Privies 383 - - - - 383 -Non domestic waste 59 - 55 - - 4 -Sullage depots 27 - 8 - - 19 -Waste disposal centres 3,187 - 3,436 - - (249) -Waste Management - 14,753 3,500 - 3,500 - (282)Total activities - 146,965 36,291 - 36,291 - 110,674General purpose revenues - - - - - - -Rates - - 77,486 - - 77,486 -Domestic waste - - 11,536 - - 11,536 -Funds management - - 3,953 - - 3,953 -Financial accounting - - 10,789 - - 10,789 -Maintenance - - 1,468 - - 1,468 -General purpose revenues - - 105,233 - 105,233 - 105,233Capital grants and contributions - - - - - - -Correction of fundamental error - - - - - - -Surplus (deficit)from ordinary activities beforeextraordinary items - - - - - - (5,441)Extraordinary items and <strong>Council</strong>restructure - - - - - - -Surplus (deficit) from all activities - 146,965 - - 141,524 - (5,441)
special schedules financial report 133Special Schedule No 2 (1) Statement of Long Term Debt (All Purpose) for theyear ended 30 June 2004Classification of debt Current Non current TotalLoans (by source)NewloansraisedFromrevenueSinkingfundsTfrs tosinkingfundsInterestapplicablefor yearCommonwealth <strong>Government</strong> - - - - - - - -Treasury corporation - - - - - - - -Other state government 79 458 537 - 79 - - 25Public subscription - - - - - - - -Financial institutions 132 808 940 - 132 - - 58Other - - - - - - - -Total loans 211 1,266 1,477 - 211 - - 83Other long term debtPrincipal outstandingat beginning of year$’000Debt redemptionRatepayers’ advances - - - - - - - -<strong>Government</strong> advances - - - - - - - -Finance leases 2,125 1,845 3,970 853 2,125 - - 76Deferred payment - - - 11,906 - - 10,769 415Other - - - - - - - -Total other long term debt 2,125 1,845 3,970 12,759 2,125 - 10,769 491Total long term debt 2,336 3,111 5,447 12,759 2,336 - 10,769 574This Schedule excludes Internal Loans and refinancing of existing borrowings.Classification of debt Current Non current TotalLoans (by source)$’000Principal outstandingat end of yearCommonwealth <strong>Government</strong> - - -Treasury corporation - - -Other state government 76 382 458Public subscription - - -Financial institutions 142 666 808Other - - -Total loans 218 1,048 1,266Other long term debt - - -Ratepayers’ advances - - -<strong>Government</strong> advances - - -Finance leases 1,434 1,264 2,698Deferred payment - 11,906 11,906Other - - -Total other long term debt 1,434 13,170 14,604Total long term debt 1,652 14,218 15,870This Schedule excludes Internal Loans and refinancing of existing borrowings.
134 special schedules financial reportSpecial Schedule No 7 Condition of Public Works as at 30 June 2004AssetclassBuildings andother structuresAssetcategoryDepreciationrate(%)Depreciationexpense$’000Cost$’000Valuation$’000References Note 9 Note 3 Note 9Accumulateddepreciation$’000Carryingvalue$’000Buildings andother structures 1 - 20% 1,828 138,821 - 16,045 122,776Subtotal 1,828 138,821 - 16,045 122,776Public roads Roads 2.38 - 7.25% 12,197 505,580 - 96,092 409,488Culverts andcauseways 1.39% 98 7,110 - 775 6,335Footbridges 1.78% 52 2,145 - 282 1,863Bridges 1.42% 315 16,269 - 1,772 14,497Guardrails 3.45% 19 540 - 131 409Footpaths 3.84% 1,069 29,137 - 8,085 21,052Cycleways 2.92% 210 11,040 - 2,134 8,906Kerb and gutter 1.68% 1,978 118,578 - 15,198 103,380Road furniture 8.26 - 15.92% 333 3,301 - 2,190 1,111Subtotal 16,271 693,700 - 126,659 567,041Drainage Stormwater 1% 1,427 142,941 - 11,218 131,723Subtotal 1,427 142,941 - 11,218 131,723Total classes -all assets 19,526 975,462 - 153,922 821,540This Schedule is to be read in conjunction with the explanatory notes following.AssetclassBuildings andother structuresAssetcategoryReferencesAssetcondition(see notesattached)Estimated costto bring to asatisfactorystandard$’000Estimatedannualmaintenanceexpense$’000Local Govt Act 1993, Section 428 (2d)Programmaintenanceworks forcurrent year$’000Buildings andother structures 3 27,148 7,000 3,541Subtotal 27,148 7,000 3,541Public Roads Roads C 156,120 15,416 5,229Culverts and causeways Unknown 602 126 41Footbridges C 232 63 9Bridges C 1,106 277 27Guardrails D 2,761 220 21Footpaths C 35,330 1,411 1,132Cycleways B 1,421 225 91Kerb and gutter B 40,494 4,682 168Road furniture Unknown 625 199 210Subtotal 238,691 22,619 6,928Drainage Stormwater Unknown 4,435 1,757 780Subtotal 4,435 1,757 780Total classes -all assets 270,274 31,376 11,249This Schedule is to be read in conjunction with the explanatory notes following.
special schedules financial report 135Special Schedule No 7 Condition of Public Worksas at 30 June 2004 (cont)Condition of Public AssetsIn assessing the condition of Public Assets, <strong>Council</strong> has considered the existing condition and function of each asset. Proposed or potentialenhancements to the existing asset have been ignored.Assetsspecified rating.<strong>Council</strong> recognises that the rating used by <strong>Wollongong</strong> <strong>City</strong> <strong>Council</strong> may be different from that adopted by other councils.Asset condition - public buildings and other structuresRating Status Definitions5 Excellent Building or asset has no defects,condition and appearance isas new.4 Good Building or asset exhibitssuperficial wear and tear, minorsigns of deterioration to surfacefinishes, but does not requiremajor maintenance and no majordefects exist.3 Fair Building or asset is in averagecondition, deteriorated surfacesrequire attention, and deferredmaintenance work exists.2 Poor Building or asset hasdeteriorated badly, seriousstructural problems, generalappearance is poor with erodedprotective coatings, elements aredefective, services are frequentlyfailing and a significant number ofmajor defects exist.1 Very Poor Building or asset has failed, is notoperational and unfit for occupancyor normal use.Asset condition - public roadsThe figures relating to estimated cost to bring to a satisfactory standard and estimated annual maintenance expense are currently unavailable.Estimates provided relate to estimates as at 30 June <strong>2003</strong>.The following cAustralian Infrastructure <strong>Report</strong> Card.
136 special schedules financial reportSpecial Schedule No 7 Condition of Public Worksas at 30 June 2004 (cont)A Very Good Infrastructure is fit for its currentand anticipated purpose in termsof infrastructure condition.B Good Minor changes required in one ormore of the above areas to enablethe infrastructure to be fit for itscurrent or anticipated purpose.C Adequate Major changes required in oneor more of the above areas tobe fit for its current andanticipated purpose.D Poor Critical changes required in oneor more of the above areas tobe fit for its current andanticipated purpose.E Inadequate Inadequate for current andfuture needs.<strong>Wollongong</strong> <strong>City</strong> <strong>Council</strong>’s pavements, kerb and gutter, cycleways and guardrails are assessed using the <strong>NSW</strong> Roads and Traffic AuthoritiesRoad Condition Manual - ROCOND 90. Condition scores are derived for each individual asset and converted into a pavement condition index(PCI). The PCI has been related to the rating system adopted by <strong>Wollongong</strong> <strong>City</strong> <strong>Council</strong> as follows:PCIRating>90 A70-90 B50-70 C
additional information required under the local goverment act financial report 137National Competition PolicyCompetitive NeutralityCompetitive neutrality is one of the key principles of the National Competition Policy. This principle is based on the concept of a ‘level playingfield’ for people competing for business and, particularly, relates to situations where competition is between the private and public sectors.This underlying philosophy is aimed at enhancing competition and subsequently creating greater efficiency and lower costs to both thegovernment and the community.Local government councils are required to identify what its business activities are and categorise these businesses as Category 1 (annual grossoperating income greater than $2 million per year) and Category 2 (annual gross operating income less than $2 million per year). <strong>Council</strong>s mustreport on its Category 1 and 2 businesses as at 30 June 2004.<strong>Wollongong</strong> <strong>City</strong> <strong>Council</strong> has identified the following businesses for the purpose of competitive neutrality.Category 1• Waste Disposal• Tourist ParksCategory 2• Property Management• Health and Fitness• Crematorium and Cemeteries• Marketing• <strong>Wollongong</strong> <strong>City</strong> Truck and PlantThe methods used in determining the pricing policies of each of <strong>Council</strong>’s business activities are based on the projected performance of each ofthese activities. The pricing policy for each business activity is identified in <strong>Council</strong>’s fees and charges document, an annexure to the corporateplan. The performance of each business activity is reported in the Special Purpose financial reports (Statement of Financial Performance byBusiness Activities and Statement of Financial Position by Business Activities). These Special Purpose financial reports are included within thisdocument. The actual performance of each business activity for the <strong>2003</strong>-04 financial year was in line with projections.Competitive Neutrality ComplaintsUnderpinning competitive neutrality is the need to properly recognise the full costs of <strong>Council</strong>’s business activities. This allows comparisonsto be made with competitors in the same marketplace and provides information that will allow <strong>Council</strong> to determine pricing policies for eachbusiness.<strong>Wollongong</strong> C eferredto as FACTS (Full Activity Costing to Services). The Special Purpose financial reports (Statement of Financial Performance by Business Activitiesand Statement of Financial Position by Business Activities) are prepared using full costs derived from the FACTS system.Emphasis has been placed on developing an awareness of the Trade Practices Act, in particular Part IV of that Act. Sessions have been held forsenior management to gain an appreciation of the effect of the Act on <strong>Council</strong>’s service delivery. A complaints handling system has also beenimplemented to monitor all complaints relating to competitive neutrality.In summary, <strong>Council</strong> has embraced the principles of the National Competition Policy and has developed a business reporting facility through itscorporate plan and business planning processes.
138 additional information required under the local goverment act financial reportControlled EntitiesThe accounts of <strong>Council</strong>’s controlled entities are shown as follows:Change in net assetsresulting from operationsTotal equityControlled entities30/06/04$’00030/06/03$’00030/06/04$’00030/06/03$’000<strong>Wollongong</strong> <strong>City</strong> Gallery Ltd (3) 574 4,968 4,972Illawarra Performing Arts Centre Ltd* (19) 5 170 189<strong>Wollongong</strong> <strong>City</strong> Centre Ltd (57) 53 27 84<strong>Wollongong</strong> <strong>City</strong> of Innovation Ltd 48 8 39 (9)* The Illawarra Performing Arts Centre has changed its reporting period to a calendar year – the change in net assets represents the twelvemonth period from 30/12/02 to 31/12/03. Total equity is as at 31/12/03.Statement of Rates and Charges Written OffRates and charges totalling $1,764,104.11 were written off during the period 1 July <strong>2003</strong> to 30 June 2004, in accordance with the Local<strong>Government</strong> Act 1993. This compares favourably to the $2,406,702.74 written off for the previous reporting period. Allowance is made for writeoffs within our annual budget. Rates and charges written off are summarised hereunder:$Section 600 rebates $261,598.29Valuation objections $1,051.37Journal credits (re-rated/non-rateable) $176,860.74Postponed rates (1996/1997) $98,254.55Postponed interest (1996/1997) $52,489.16Pensioner rate concession (voluntary) $1,102,343.00Pensioner interest $3,830.00Journal interest write offs $24,551.00Domestic waste management charges $43,126.00Total $1,764,104.11Contributions under S356$<strong>Wollongong</strong> <strong>City</strong> Gallery Ltd $610,500Illawarra Performing Arts Centre Ltd $558,000Illawarra Regional Information Service $60,000Tourism <strong>Wollongong</strong> $300,000<strong>Wollongong</strong> <strong>City</strong> Centre Ltd $676,970Total commitment $2,205,470
additional information required under the local goverment act financial report 139Senior Management Remuneration PackagesSenior management remuneration packages are on a total employment cost basis and are inclusive of the provision of a <strong>Council</strong>-owned motorvehicle, superannuation and salary.$Chief Executive Officer 244,107Director <strong>City</strong> Services 176,081Director Environment and Planning 175,000Director Corporate Governance 168,714Manager Finance 118,450Manager Works 129,052Manager Engineering Services 149,325Manager Environment and Health 119,326Manager Library 92,700Manager Human Resources 116,343Manager Strategic Planning 125,000Manager Development Assessment and Compliance 125,000Manager Property 115,000Manager Administration and Information Technology 132,364Manager Recreation and Natural Resources 121,540Manager Design 138,912Manager Community and Cultural Services 126,338Manager Communications and Public Relations 105,000Total 2,478,252Freedom of Information Act Applications - <strong>2003</strong> to 2004The Freedom of Information Act provides a legally enforceable right for people to obtain access to information. One of our key values isto becontact the Public Officer for assistance.Formal applications for access to information were received as follows:Month Name of applicant Processing time statutory limit 21 daysJuly Nil N/AAugust Nil N/ASeptember Nil N/AOctober Ronayne 12 daysNovember Nil N/ADecember Nil N/AJanuary Ellicott 15 daysFebruary Nil N/AMarch Nil N/AApril Nil N/AMayGeotechnical Pty LtdWalkerEllicott18 days15 days7 daysJune Adami 13 days
140 additional information required under the local goverment act financial reportSummary Legal ProceedingsA summary of legal proceedings instituted by or against <strong>Council</strong> during <strong>2003</strong>-04 is as follows:MonthName ofdefendant Particulars of offence ResultJuly Davbury Failure to comply with Order to remove fillat Duke St, Woonona Listed for plea or mention on 21 August <strong>2003</strong>August Davbury Failure to comply with Order to remove fillat Duke St, WoononaWithdrawn on 18 September <strong>2003</strong> based uponsubstantial compliance with <strong>Council</strong>’s OrderSeptember Ellis Deposit litter from motor vehicle Fined $250 plus costs of $261Graham Deposit litter from motor vehicle Fined $200 plus costs of $161October Christou Breach of Environmental Protection Notice Adjourned to 19 November <strong>2003</strong> for mentionVeleski Deposit litter from motor vehicle Listed for mention 25 November <strong>2003</strong>Difazio Deposit litter from motor vehicle Listed for mention 5 December <strong>2003</strong>Goodger Deposit litter from motor vehicle Listed for mention 2 December <strong>2003</strong>Colquhoun Owner of dog on beach contrary to notice Listed for hearing on 19 November <strong>2003</strong>November Christou Breach of Environmental Protection Notice Withdrawn upon payment of penaltyVeleski Deposit litter from motor vehicle Withdrawn upon payment of penaltyColquhoun Owner of dog on beach contrary to notice Summons dismissed by court on 19 November <strong>2003</strong>December Goodger Deposit litter from motor vehicle Appeal withdrawn by defendantDifazio Deposit litter from motor vehicle Withdrawn upon payment of penaltyJanuary Colquhoun Application for costs $850 after dismissal of<strong>Council</strong>’s summonsApplication by Colquhoun dismissed on30 January 2004February King Parking infringement Fined $152 plus costs of $61Quayle Parking infringement Fined $50Staggs Parking infringement Fined $50Shen Parking infringement Fined $152 plus costs of $61Karedis Parking infringement Dismissed under s10 of Crimes ActMallon Parking infringement Fined $68 plus costs of $61Wills Parking infringement Fined $200 plus costs of $61Myinco Parking infringement Fined $400 plus costs of $61Wood Parking infringement Fined $152 plus costs of $61Walton Parking infringement Fined $152 plus costs of $61March Moxham Parking infringement Dismissed under s10 Crimes ActShen Parking infringement Fined $70 plus costs of $61Tirana Parking infringement Fined $200 plus costs of $61McLeod Parking infringement Fined $100 plus costs of $61Criddle Parking infringement Dismissed under s10 Crimes ActHooshmand Parking infringement Fined $150 plus costs of $61Cutajar Parking infringement Fined $150 plus costs of $61Foley Parking infringement Fined $70 plus costs of $61April Sprinarula Parking infringement Fined $68 plus costs of $61Payne Parking infringement Dismissed under s10 Crimes ActMouawad Parking infringement Fined $50 plus costs of $61Crocco Parking infringement Dismissed under s10 Crimes ActEngland Parking infringement Dismissed under s10 Crimes ActNyers-Bako Parking infringement Fined $68 plus costs of $61Foster Parking infringement Fined $80 plus costs of $61Krsteski Parking infringement Dismissed under s10 Crimes Act
additional information required under the local goverment act financial report 141Summary Legal Proceedings (cont)A summary of legal proceedings instituted by or against <strong>Council</strong> during <strong>2003</strong>-04 is as follows:Month Name of defendant Particulars of offence ResultApril McCurley Parking infringement Dismissed under s10 Crimes ActCoast Metal Recyclers Breach of Environmental Protection Notice Fined $300 plus costs of $870.10May Nyers Parking infringement Fined $136 plus costs $122Lowther Parking infringement Fined $152 plus costs $61Greentree Parking infringement Fined $68 plus costs $61Cummins Parking infringement Dismissed s10 Crimes ActEarly Parking infringement Dismissed s10 Crimes ActCutajar Parking infringement Fined $150 plus costs $61Ramsey Parking infringement Fined $50 plus costs $61June Nyers Parking infringement Fined $100 plus costs $61Frank Unauthorised advertising sign Withdrawn following removal of signLowther Parking infringement Fined $100 plus costs of $61Equal Employment Opportunity (EEO)<strong>Council</strong> seeks to create a working environment that is free from discrimination and based on merit and equality of access to employment,promotions and learning and development activities. Primarily the EEO Management Plan identifies the measures that will be used to review anddevelop policies and procedures, enhance EEO related knowledge and skills of staff and set the direction for the growth of the workplace froman EEO perspective including introducing actions which eliminate barriers which exclude EEO groups from equal employment opportunity with<strong>Wollongong</strong> <strong>City</strong> <strong>Council</strong>.Major achievements and initiatives in <strong>2003</strong>-04 included:• Ongoing commitment to employment opportunities for Aboriginal and Torres Strait Island peoples by continuing to offer positions withinour annual cadets, apprentices and trainee programs.• Provision of ongoing support to people with disabilities within our established Worktrial Program.• Ongoing support for employees with disabilities employed under Apprenticeship Programs and targeted positions.• Ongoing provision of cultural and disability awareness training for all new employees under our Corporate Induction Program.Contracts Awarded by <strong>Council</strong>In accordance with Section 428(2)(h) of the Local <strong>Government</strong> Act 1993 the following is a list of contracts awarded during the period 1 July <strong>2003</strong>to 30 June 2004 (whether as a result of tender or otherwise) other than employment contracts and contracts for less than $100,000:Tender number(if applicable) Name of contractor Contract description Contract amountT03/12 Shades Structures Birdsair Beaton Park Leisure Centre pool roof membrane $350,000T03/13 AWS Weighbridge Helensburgh Waste Disposal Depot $195,000T04/10 Sports TechnologyInternationalSupply and placement of synthetic track surfacingBeaton Park Leisure Centre $338,471T04/11 Malsave Windang Surf Life Saving Club extensions and alterations $581,000T04/13 APP Corporation West Dapto release area masterplanning $229,400T04/14 Annand Alcock West Dapto Statutory Planner $192,500T04/15 GHD West Dapto Infrastructure and economic assessment $159,510
142 additional information required under the local goverment act financial reportServices and Programs for ChildrenCommunity and Cultural Services Division• Coordinated the regional Purple Ribbon Campaign throughout July <strong>2003</strong> with the objective of raising awareness of child abuse inthe community.• Coordinated a very successful children’s week event - THE KIDS GARDEN GROOVE at the <strong>Wollongong</strong> Botanic Garden. The focus on thisevent is to encourage families to have fun together whilst celebrating children in the context of their families and broader communities.• Hosted the Biennial NACBCS (National Association of Community Based Children’s Services) at the University of <strong>Wollongong</strong> aimed atreigniting the passion of early childhood practitioners. Over 170 delegates attended the two-day event.• Hosted a successful SocialJustice in Children’s Services event with 45 people in attendance representing early childhood servicesand TAFE.• Jointly hosted a Grandparents Forum/Expo with the Illawarra Area Health Service held at the <strong>Wollongong</strong> Town Hall. The event attracted 80participants for issues relating to safety, child development, nutrition, legalities, and health and relaxation techniques for grandparents.• Aboriginal Grandparent’s expo was held at the Aboriginal cultural centre in Kenny Street. This attracted 25 participants to workshops onlegalities and accessing Centrelink and the Department of Community Services.Library Division• The library division is dedicated to the provision of children and youth services, particularly in planning to meet the special library needs ofchildren and youth in <strong>Wollongong</strong>.• Following extensive community participation, a plan of management for children and youth library services is now in operation. The planguides service development on a following five-year rolling program.• The ‘Leap Frog’ collection, established at the central and branch libraries provides reading material aimed at the enthusiastic beginner readerright through to the reluctant reader.• A graphic novel collection for youth has been established at the central and district libraries. The collection provides popular titles aimed at thisage group.• The annualto enjoy fun activities held at the library.• The library hosted the Pre Book Week Extravaganza for public and school library professionals focusing on the promotion of book week toyoung people.Recreation and Natural Resources Division• The Discovery Centre at the <strong>Wollongong</strong> Botanic Garden again presented a wide range of activities for children during the school holidayperiods. The centre’s programs are based on environmental issues presented through drama, craft sessions and fun activities held within thecentre, the frounds of the botanic garden and further afield.• Infants, primary and secondary chool groups were catered for at the Discovery Centre through presentations related to school curriculms.Teachers notes and project sheets for children are distributed as part of the program.• Botanic garden staff also provide a range of activities for children, usually working in collaboration with other <strong>Council</strong> divisions or externalspecial interest organisations. These include World Environment Day and National Tree Day.Health and Environment• Our award-winning Surf Sense program reached thousands of school children in the <strong>Wollongong</strong> and Southern Highlands region to instructthem on beach safety. The sessions are presented through a series of informative and engaging graphics tailored for either primary orsecondary schools.• The annual Rise and Shine campaign actively targets school children through innovative programs designed to improve their local schoolenvironment.Engineering Services• Glengarry Waste Education and Visitors Centre coordinated a range of fun activities on the topics of recycling and waste minimisationthroughout the year. These were presented either through school and community group workshops, or to individual children through theschool holiday program.• A special recycling and waste minimisation educational activity, by way of a competition for both infants and primary school children, was alsoconducted and attracted a large number of entries.
additional information required under the local goverment act financial report 143External Bodies with Delegated Functions by <strong>Council</strong> During <strong>2003</strong>-04The following listed entities are delegated to exercise functions of <strong>Council</strong>BodyNeighbourhood Committees (10)Allans Creek Floodplain Management CommitteeCollins/Whartons/Farrahers/Bellambi Gully/Bellambi Lake CreeksFloodplain Management CommitteFairy/Cabbage Tree Creek Floodplain Management CommitteeHewitts Creek Floodplain Management CommitteeMinnegang Creek Floodplain Management CommitteeMullet Creek Floodplain Management CommitteeNorthern Creeks Floodplain Management CommitteeTowradgi Creek Floodplain Management CommitteeAllen Park Bushcare GroupBellambi Dune Bushcare GroupBlue Divers Bushcare GroupBlue Divers Bushcare Mid week GroupBrickyard Point Bushcare GroupBudjong Creek Landcare GroupByarong Creek Bushcare GroupCaroline Creek Bushcare GroupCawley Road Bushcare GroupCharcoal Creek Bushcare - UpperCliffhangers Bushcare GroupColedale-Scarborough Landcare GroupConiston Heights Bushcare GroupCringila Park Bushcare GroupDarkes Road Bushcare GroupEmperor Court Bushcare GroupFarmborough Falls Bushcare GroupGreenacre Road Bushcare GroupHelensburgh Landcare GroupHill 60 Landcare GroupJenkins Creek Bushcare GroupMangerton Park Bushcare GroupMt Kembla Bushcare GroupOrana Parade Bushcare GroupPuckeys Bushcare GroupRanchby Reserve Bushcare GroupSandon Point Bushcare GroupSlacky Creek Bushcare GroupSpearing Reserve Bushcare GroupStanley Avenue Bushcare GroupFunctionProvide a formalised structure for <strong>Council</strong> to consult withthe community on planning processes and servicedelivery.Encourage the participation of residents in the planningand development of their community.Undertake data collection, information gathering anddissemination of information within the area of the catchment.Bushland restorationHind dune restorationCoastal/riparian restorationCoastal/riparian restorationCoastal headland restorationBushland restorationRiparian restorationRiparian restorationCoastal woodland restorationRiparian restorationSea cliff restorationSea cliff restorationBushland restorationRevegetation/regenerationBushland restorationBushland restorationFoothills/riparian restorationRiparian restorationBushland restorationCoastal headland restorationRiparian restorationBushland restorationBushland restorationFoothills restorationHinddune/lagoon restorationRevegetation/regenerationSea cliff restorationRiparian restorationRiparian restorationRiparian restoration
144 additional information required under the local goverment act financial reportExternal Bodies with Delegated Functions by <strong>Council</strong> During <strong>2003</strong>-04 (cont)Stanwell Park Bushcare GroupTom Thumb Bushcare GroupUpper Brooks Creek Bushcare GroupWhartons Creek Bushcare GroupWilson Street Bushcare GroupWisemans Park Bushcare GroupWollamai Point Bushcare Group<strong>Wollongong</strong> Greenhouse Park Bushcare GroupBerkeley Pioneer Cemetery Restoration GroupBulli Miner’s Cottage Management CommitteeBulli Senior Citizens CentreForté Marketing and DesignFriends of the <strong>Wollongong</strong> <strong>City</strong> GalleryFriends of the <strong>Wollongong</strong> <strong>City</strong> Library IncorporatedIllawarra Performing Arts Centre LimitedPort Kembla Senior Citizens Centre<strong>Wollongong</strong> <strong>City</strong> Gallery Foundation Limited<strong>Wollongong</strong> <strong>City</strong> Gallery LimitedRiparian restorationWetland restorationRiparian restorationRiparian restorationSea cliff restorationBushland restorationCoastal headland restorationRevegetationUndertake minor maintenance and works to the grounds andimprovements of Berkeley Pioneer Cemetery also utilisingprivate equipment and labour from the Periodical DetentionCentre.Conserve, promote, develop, manage, secure andmaintain the Bulli Miner’s Cottage.To occupy, manage, secure, caretake and maintain the abovepremises on behalf of <strong>Council</strong>.Make the premises available for use by seniors groups,community groups and others compatible withat mutually agreed times.The Forte Management Committee is established to leadthe organisation’s marketing and design effort and, in sodoing ensure the highest standards of management andservice to clients and customers.The committee, comprised of executive committeemembers, two senior managers and at least onerepresentative from Forte Marketing and Design, isresponsible for ensuring its sustainability, governanceand direction.Friends of the <strong>Wollongong</strong> <strong>City</strong> Gallery organise and conductsocial functions, including fund raising on the premises of the<strong>Wollongong</strong> <strong>City</strong> Gallery.Organise and conduct social functions including fund raisingon the premises or elsewhere.To occupy, manage, secure, caretake and maintain theIllawarra Performing Arts Centre premises, including theemployment of staff.Organise and conduct performances, social functionsincluding fund raising on the premises of the IllawarraPerforming Arts Centre or elsewhere on behalf of theperforming arts centre.To occupy, manage, secure, caretake and maintain the abovepremises on behalf of <strong>Council</strong>.Make the premises available for use by seniors groups,community groups and others compatible with atmutually agreed times.Undertake fund raising for the <strong>Wollongong</strong> <strong>City</strong> Gallery,including organising and conducting social functions on thepremises of the <strong>Wollongong</strong> <strong>City</strong> Gallery or elsewhere.To occupy, manage, secure, caretake and maintain the<strong>Wollongong</strong> <strong>City</strong> Gallery premises, including the employmentof staff.
additional information required under the local goverment act financial report 145External Bodies with Delegated Functions by <strong>Council</strong> During <strong>2003</strong>-04 (cont)<strong>Wollongong</strong> <strong>City</strong> Centre Limited<strong>Wollongong</strong> Safe Community Action Team<strong>Wollongong</strong> Senior Citizens Centre<strong>Wollongong</strong> Youth Centre Entertainment CommitteeThe marketing of <strong>Wollongong</strong> <strong>City</strong> Centre and Crown StMall, including the employment of staff where required.Provide a formalised structure for <strong>Council</strong> to consult with thecommunity to make <strong>Wollongong</strong> a safer community.To develop and implement both long term and short termplans so that people will feel safer in <strong>Wollongong</strong>.To occupy, manage, secure, caretake and maintain the abovepremises on behalf of <strong>Council</strong>.Make the premises available for use by seniors groups,community groups and others compatible with atmutually agreed times.Instruct visitors to the <strong>Wollongong</strong> Youth centre in the rules/conditions applicable to visiting the Centre at entertainmentevents.Organise and conduct social functions including fund raisingon the premises or elsewhere on behalf of <strong>Council</strong>.Privacy and Personal Information Protection Act 1998The Act requires <strong>Council</strong> to comply with Information Protection principles which relate to the collection, storage, access, use and disposal ofpersonal information that <strong>Council</strong> holds. <strong>Council</strong> is also bound by the Privacy Code of Practice for Local <strong>Government</strong>. Copies of both documentsare available from our Public Officer at the <strong>Council</strong> administration building.Ecologically Sustainable DevelopmentThe World Commission for Environment and Development was established by the United Nations in 1983. Its primary role was to propose longterm strategies to achieve sustainable development. In 1987, the Commission handed down a report entitled: ‘Our Common Future’ which firstused the term sustainable development and defined it as:‘Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.’In 1992, the United Nations held the ‘Rio Earth Summit’ in Rio de Janeiro and from this conference came the term Agenda 21. Amongst otherissues, Agenda 21 placed a strong emphasis on the responsibility of local governments to implement sustainability in their local areas. Thesummit logo: ‘Think Globally, Act Locally’ backed up this emphasis and helped give birth to the local government focused Local Agenda 21process.The Australian National Strategy for Ecologically Sustainable Development included ecology within the term and defined it as:‘Development that improves the total quality of life, both now and in the future, in a way that maintains the ecological processes on which lifedepends.’The <strong>NSW</strong> Local <strong>Government</strong> Act was changed in 1993 to include the requirement that councils must:a) properly manage, develop, protect, restore, enhance and conserve the environment of the area for which it is responsible, in a manner thatis consistent with and promotes the principles of ecologically sustainable development; andb) have regard to the long term and cumulative effects of its decisions.Since 1992, the sustainability has gradually evolved from a concept into a practical focus on what is referred to as the Triple Bottom Line. Thismeans that we need to consider the impacts of our decisions and actions on the environment, the community and the economic bottom line.In 2002, the United Nations held a follow up conference to the Rio Earth Summit known informally as Rio +10, in Johannesburg, South Africa.Some of the main conference outcomes pertained to global agreement and that there had been a poor translation of Local Agenda 21 conceptsput into action. As such, Local Agenda 21 was renamed: Local Action 21, in order to emphasise the need of local governments to implementthe sustainability agenda.<strong>Wollongong</strong> <strong>City</strong> <strong>Council</strong> has embraced sustainability as a driving philosophy. It has developed and adopted a sustainability policy to guide itsactivities. <strong>Council</strong> is in the process of refocusing its planning and operations around the Triple Bottom Line with the goal of making itself and the<strong>City</strong> of <strong>Wollongong</strong> increasingly sustainable.
146 additional information required under the local goverment act financial reportLocal Ethnic Affairs Policy Statement (LEAPS)The Ethnic Affairs Commission Act 1997 outlines three key result areas to assist <strong>Council</strong> to determine its multicultural strategies and activities.These three result areas (KRA) are:(1) Social Justice,(2) Community Harmony,(3) Economic and Cultural Opportunities.Our response to the key result areas is indicated at the end of each LEAPS project by the acronym KRA and the corresponding number.Community and Cultural Services• Delivery of Cultural Awareness program to all new employees as part of the Corporate Induction Program (KRA 1 and 2).• Delivery of Cultural Awareness training to external service providers via the Volunteering Illawarra Training function (KRA 1).• Different Faiths, One Vision Harmony Project that works with the religious leaders of <strong>Wollongong</strong> to create productive inter-faith dialogue(KRA 1 and 2).• Ongoing development of <strong>Council</strong>’s Interpreter Service (KRA 1, 2 and 3).• Translation support across organisation (KRA 1, 2 and 3).• Development and implementation of ethno-specific Drug and Alcohol information forums (KRA 1 and 2).• Partnership with <strong>NSW</strong> Fire Brigades to increase fire safety amongst <strong>Wollongong</strong>’s Non English Speaking communities (KRA 1).• Pil• Development of a Regional Integrated Settlement Plan for the area (KRA 1, 2 and 3).• <strong>Annual</strong> Celebrate Refugee Week (KRA 1).Library Services Division• The library service holds collections in several of the languages spoken in the <strong>Wollongong</strong> community, and is able to borrow collections fromthe State Library of <strong>NSW</strong> for all other languages (KRA 1, 2 and 3).• Literacy materials and ESL resources are provided to support this clientele (KRA 1, 2 and 3).Engineering Division• The Earthworks program was run for a number of non English speaking background (NESB) communities with an interpreter availablewhen required. The groups attending included the Arabic Women’s Association; members of the Turkish, Italian and Greek communities;and a group of international <strong>Wollongong</strong> University students from International House. The Earthworks booklet information has been providedin Chinese, Italian and Greek languages (KRA 1, 2 and 3).• Worm farming workshops were conducted during Refugee Week for youth from the Warrawong Intensive Language Centre (KRA 1, 2 and 3).• Residents who experienced difficulties due to language barriers were visited by <strong>Council</strong>’s Waste Management Green Team and were shownthe correct methods for disposal of waste by way of demonstration (KRA 1 and 2).Access and EquityCommunity and Cultural Services Division• Corporate sector initiative deferred to consolidate internal strategies.• A range of community education and awareness raising strategies were undertaken including addressing various community groupsand organisations, manning of an information stall in Dapto and also at the VORN Expo, participation in the Social ResearchData initiative.• Accessible toilets completed at Cringila.• Construction of an accessible ramp at Helensburgh Preschool.Library Division• Library materials provided in many formats to assist access by the broader community.• Home Library Service, Self-Select Home Delivery (you select, we deliver), and Bookmobile services provided to facilitate access bythe whole community.
additional information required under the local goverment act financial report 147Overseas Trips July <strong>2003</strong> to June 2004International <strong>City</strong> Managers Association (ICMA) <strong>Annual</strong> Conference, USA, 21 - 24 September <strong>2003</strong>Rod OxleyTotal Cost: $10,133.18International <strong>Council</strong> for Local Environmental Initiatives, Greece, 2 - 8 November <strong>2003</strong>Lisa MillerTotal Cost: $7,000.00International <strong>City</strong> Managers Association (ICMA) Board Meeting, USA, 5 - 9 February 2004Rod OxleyAll costs met by ICMA<strong>Wollongong</strong> <strong>City</strong> <strong>Council</strong> Insurance Negotiations, USA and UK, 15 - 27 April 2004Rod OxleyDennis WilliamsTotal Cost: $26,064.002004 Churchill Fellowship and Associated Appointments, UK, Ireland and Czech Republic, 2 April - 4 June 2004Greg DoyleTotal Cost: $3,520.00International <strong>City</strong> Managers Association (ICMA) Board Meeting and Meeting with Mayor of Baltimore, USA2 - 5 June 2004Rod OxleyTotal Cost: $5,899.17All other costs met by ICMA<strong>City</strong> Delegation to Kawasaki, Japan (Sister <strong>City</strong>), 29 June - 4 July 2004Alex DarlingRod OxleyTotal Cost: $6,570.00All other costs met by <strong>City</strong> of KawasakiStatement of Partnerships and Other Joint VenturesInsurance Pool PremsurePremsure was formed in 1988 for the purpose of financing <strong>Council</strong>’s public liability and professional indemnity risk by providing an alternative toinsurance for claims up to $1 million. Premsure originally comprised five councils, with South Sydney <strong>City</strong> <strong>Council</strong> joining in 1995.Although <strong>Wollongong</strong> <strong>City</strong> <strong>Council</strong> withdrew its membership of Premsure on 31 October 1996, we continue to be responsible for payment of theclaims incurred during the term of membership.
148 Glossary annual report <strong>2003</strong>-04GlossaryAASAustralian Accounting StandardBenchmarkingTask of measuring the progress of businessunits through quantitative and qualitativecomparisons with organisations offering asimilar range of goods, services and facilities.Best PracticeA concept whereby a business or organisationstrives to perform at a higher level than any ofits competitors with regard to the provision ofgoods and services.Best ValueProvision of quality services in a competitiveenvironment to achieve service levelsdemanded by customers.Billable HoursYearly production target after all leave, trainingand downtime is deducted from the totalavailable working hours.Business UnitsWork units operating under the FACTS systemof identifying fill operational costs in order tomarket test against competitors, ultimatelyimproving service to the community.CatchmentArea of land that drains rainfall into a riveror lake.CCPCities for Climate Protection is a campaignof the International <strong>Council</strong> for LocalEnvironmental Initiatives (ICLEI). CCP offersa framework for local government to developa strategic agenda to reduce global warmingand air pollution emissions, with the benefit ofimproving community liveability.CEOChief Executive OfficerCorporate PlanA rolling management plan that sets directionover a five-year period and identifiesobjectives and performance indicators foreach corporate program.<strong>Council</strong>lorsElected representatives who set strategicdirection, monitor organisationalperformances, liaise with stakeholders, andensure operational compliance.DatabaseSystematic arrangement of computer datato enable it to be automatically retrieved andmanipulated.DCPDevelopment Control PlanDegradationRemoval of material through erosion.E-commerceBuying and selling goods through the Internet.ESDEcological Sustainable DevelopmentEnterprise AgreementContract between employer and employeeson working conditions and wages based onagreed performance levels.FACTSFull Activity Costing to services systemenabling the identification of all costsassociated with a function or activity.IndigenousOriginating in a particular region or country,native to the area.InfrastructureRoads, buildings, bridges, pavements,cycleways and other constructions.Key Performance IndicatorsA set of indicators that assist in measuringoverall performance and reflect the health ofthe organisation.KMKilometreLeachateWater carrying impurities that have percolatedthrough the earth, primarily at rubbish tips.MMillionMissionOverall corporate philosophy that articulateshow an organisation’s vision will be achieved.Neighbourhood CommitteesCommittee comprised of communityrepresentatives who review issues pertainingto their specific neighbourhood areas andmake recommendations to <strong>Council</strong>.OH&SOccupational Health and SafetyOH&SIMOccupational Health and SafetyInjury ManagementPerceptible RisksRisks that are large enough, great enough ordistinct enough to be noticed.Performance IndicatorMeasurable statistic identifying the extent ofactivity in meeting a specific objective.Quality ApproachA commitment to the principles of TotalQuality Management.Quarterly Corporate ReviewReview of progress in meeting corporate planobjectives and budget forecasts.RiparianSituated on the bank of a creek or body ofwater.ScopingDetailing the area to be covered by a givenactivity or subject.StakeholderAny individual or group having a particularinterest in a project or action.SustainabilitySensitive use of natural resources withoutharming the ecological balance of the region.Sustainable DevelopmentEconomic development designed to meetpresent needs whilst also taking into accountfuture costs. These include environmentalcosts and the depletion of natural resources.SWERFAn innovative solid wastes to energy facilitypreviously located near Whytes Gully now nolonger operational.ValuesUnderlying attitudes that influence decisionand actions to maximise an organisation’sperformance.VisionStatement of direction that articulates theaspirations of <strong>Council</strong> and serves as a guideto all those who contribute to the organisation.
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