Wollongong City Council Annual Report 2005-06

Our lifestyleDiversified economyWollongong is proud of its industrial roots,and is still known and acknowledgedas one of Australia's leading industrialcentres. While steel and othermanufacturing industries remain anessential part of the local economy, thecity has long recognised the need todiversify its economic base. Constructionof the spectacular Sea Cliff Bridge tothe north has given even more focus tothe burgeoning tourism industry, andinformation technology, hospitality, healthservices and telecommunications continueto grow as key industries of the region.Learning cityEducation has played a vital role inthe city's development. The Universityof Wollongong continues to attractinternational accolades for its dynamicapproach, augmented by thedevelopment of an Innovation Campus ona 33-hectare site at North Wollongong.The establishment of the university's newGraduate School of Medicine will addan additional dimension to educationalopportunities available in the city.Vibrant communityWollongong enjoys a rich sense ofcommunity and cultural heritage, withpeople from more than 30 differentlanguage groups and 20 religiousbackgrounds living in harmony. A deeprespect for others' traditions and regularcelebrations of diverse customs add tothe vibrant tapestry of community lifeand provide another dimension to ourincreasingly sophisticated city.Our futureSustainable livingThe people of Wollongong are fortunate tolive in a stunning natural environment, withthe backdrop of the magnifi cent IllawarraEscarpment and a spectacular stretchof coastline. The city has developed astrong emphasis on sustainability, withthe introduction of major programs topreserve and enhance Wollongong'snatural features, a focus on environmentaleducation, and the integration ofenvironmental management into allbusiness decisions.The city's naturalenvironment ranges fromuntouched rainforests todramatic rocky sea cliffs andpristine sandy beaches.Embracing changeWe will continue our push to furtherdiversify the city's economy and strengthenour position as a centre for innovationthrough attracting new industries,encouraging growth and expansionof existing businesses, and fosteringan environment that encourages theexploration of innovative and creative ideas.New challengesThe changing face of the city continues tobring new challenges as Council strivesto provide a diverse range of servicesto meet community expectations whilemaintaining existing infrastructure. Anageing population will bring additionalneeds, and the 'sea change' phenomenonwill continue to bring new residents to thecity from Sydney and beyond.The development of the West Dapto landrelease area in the coming years will meana major population increase in the city'ssouth, and the revitalisation of the citycentre will see an even greater emphasison inner-city living in high quality residentialapartments. No longer known solely asa 'steel city', Wollongong will forge itsplace as one of the great commercial andresidential centres of Australia.3Wollongong City of Innovation

2. EconomicGoal: Facilitate a sound local economy.Process: Sustained economic growth is vital to Wollongong'sfuture. Through the Offi ce of Economic Development andworking with other agencies, Council strives to attract additionalinvestment to the city. Performance is monitored through thevalue of all development activity.KEY PERFORMANCE INDICATOR:Dollar value of development applications received01-02 02-03 03-04 04-05 05-06$435.66m $460.47m $826.66m $984.09m $512.16mResults: A statewide decrease in commercial developmenttranslated to a drop in the dollar value of applications receivedduring the year, however applications for medium densitydevelopment remained strong. Statistically Wollongongperformed well in overall development compared with other localgovernment areas in the Illawarra region.KEY PERFORMANCE INDICATOR:Number of new businesses attracted to the city (new KPI)05-0611Results: During the year the Wollongong Offi ce of EconomicDevelopment began a concerted campaign to work with otheragencies to promote Wollongong as an ideal location for newbusinesses. This fi gure will provide an ongoing indicator of thesuccess of this work.KEY PERFORMANCE INDICATOR:Number of jobs created (new KPI)05-0611,774Results: This data is obtained from Illawarra RegionalInformation Service (IRIS) and is based on the number of fulltime employment advertisements advertised in the IllawarraMercury. This fi gure shows a positive base on which theWollongong Offi ce of Economic Development can continueits work in attracting new businesses and helping existingbusinesses to expand and capitalise on available opportunities.3. EnvironmentGoal: Protect and improve our natural and built environment.Process: Environmental sustainability is a major focus forthe organisation. Two major indicators that measure our keyresults are recycling participation rates compared to the amountof waste going to landfi ll, and the amount of grant fundingreceived through the Environment Management Program.KEY PERFORMANCE INDICATOR:Household recycling versus garbage collection (tonnes)01-02 02-03 03-04 04-05 05-06Domestic 29,892 31,606 34,290 35,729 36,313Recycling 14,348 14,490 14,869 15,957 15,852Results: While rates of domestic waste increased slightly,recycling rates held steady, demonstrating the importanceof ongoing community education to promote sustainableenvironmental management practices.KEY PERFORMANCE INDICATOR: Dollar amount of grantfunding received for Environmental Management Program03-04 04-05 05-06$1,443,767 $1,451,590 $489,040Results: While results for the last two years included alarge amount of sponsorship of environmental managementprograms, this year the focus was on ensuring we were able tocomplete a range of programs already funded. The reductionin 2005-06 is also a refl ection on the total amount of availablefunding.

July 2005• Copying and electronically storingall incoming correspondence in ourdocument management system.• Our second Social Data Researchproject commences, to identifyimportant community issues.• Community consultations markdevelopment of the cultural plan for2006-10. The plan will guide Council inthe future provision of cultural programsand activities.• Wollongong City Library wins NewSouth Wales Public Libraries MarketingAward.• Undertook Cordeaux Road PedestrianAccess and Mobility Plan (PAMP)through community consultation. Reportrecommendations endorsed by Council.• World renowned Vienna Boys Choirvisited Wollongong.• NAIDOC week celebrations held inWollongong.August 2005• Welcomed a group of children from ourJapanese Sister City, Kawasaki.• Vegetation management plans forriparian corridors completed for CawleyStreet/Towradgi Creek, Towradgi;Hargraves Creek, Stanwell Park; andRoy Johanson Park/Byarong Creek,Figtree. A vegetation management plancompleted for Bellambi lagoon.• Final review of 2004-05 fi nancialperformance.• Book Week celebrated at the CentralLibrary with 'Behind the Scenes @ yourlibrary' tours.September 2005• The highly successful Lady Mayoress'Fashions in the Spring Parade was held,raising $6,500 for the State EmergencyService.• Council delegates attend the ninth ChinaInternational Fair for Investment andTrade - China/Hong Kong trade missionwith the Illawarra Regional DevelopmentBoard and Illawarra Business Chamber.• Annual statements adopted by Counciland made available for communitycomment.• Draft Wollongong City CentreRevitalisation Strategy exhibited,promoting a new vision for the CBD.• A Sex Industry Development Control Planwas adopted.October 2005• Council adopted a communityengagement framework and policyto guide Council staff when obtaininginformation and consulting thecommunity.• Viva la Gong festival held in Stuart Park.• Review of corporate plan and budget.• September quarterly corporate reviewcompleted and presented to Council.• Completion of vegetation managementplan for Collins Creek catchment.• Public meetings held to workshop theproposals found in the City CentreAccess and Movement Strategy.• Wollongong Station interchange andprecinct master plan completed.• A draft Wollongong City shuttle buspre-feasibility report completed.November 2005• Phase one of the Skills and PerformanceManagement Assessment System formreleased.• Remembrance Day ceremony andoffi cial luncheon held to welcome theGovernor-General, Major GeneralMichael Jeffery AC, CVO, MC.• State of environment report completed.• Construction of the connection ofClifton Village to the new Sea CliffBridge undertaken using a combinationof concrete pathways and elevatedboardwalk along the edge of the cliffembankment.• Stay Fresh campaign launched inconjunction with the NRMA to preventfatigue related incidents on the PrincesHighway.• Council adopted a new managementstructure for the organisation.December 2005• A draft revitalisation strategy forWollongong's city centre adopted asCouncil’s policy position following publicexhibition.• Undertook a community engagementsurvey, consulting 2,098 people onmethods and frequency of communityengagement.• Volunteer Christmas parties held torecognise individual contributionsand thank volunteers for ongoingcommitment.• Installation of three luxury cabins atWindang Beach Tourist Park under apartnership agreement with TAFE.• Function held for Staff Achievement andRecognition Award participants.• 8,000 people fl ock to New Year'sfEVEr in the Gong, a free communitycelebration staged by Council inWollongong's Lang Park.• Sustainability in the Workplacelaunched following our highly successfulSustainability Begins at Home program.• Estuary Management Plans for Fairy,Towradgi, Hewitt/Tramway creeksendorsed by Council.• City Centre Access and MovementStrategy adopted.January 2006• Australia Day celebrations anoutstanding success, with approximately70,000 people fl ocking to Wollongong'sBelmore Basin to enjoy entertainment,fi reworks and a citizenship ceremony.• Stormwater quality improvement deviceunit installed at JJ Kelly Park to collectlitter and trash from the CBD catchment.• $40,000 grant received from the NSWEnvironmental Trust for bush restorationwork at Hargraves Creek, Stanwell Park.• High resolution aerial photo imagery ofcity captured.• Five grants received from the NSWDepartment of Sport and Recreation'sCapital Assistance Program totalling$135,000.• $110,000 grant received fromthe Southern Rivers CatchmentManagement Authority EstuaryIncentives Grants Program.February 2006• Decision taken to focus the roleof Forte Marketing and Design oninternal Council clients and projectsfor Council's affi liated organisations- the Illawarra Performing Arts Centre,Wollongong City Gallery, Crown St Malland Tourism Wollongong.• Community engagement kiosksundertaken as part of the Berkeley andTowradgi Park master plan.• Development Assessment andCompliance Division underwent a reviewof processes.• December quarterly corporate reviewcompleted and presented to Council.• Public exhibition of Bicycle Plan2006-11 and the East Woononapedestrian access mobility plan.• New organisational structureimplemented.

Economic development strategyDuring the year we fi nalised theWollongong LGA EconomicDevelopment Strategy and commencedits implementation. The strategycomplements the Wollongong EconomicDevelopment Roadmap completed byBuchan Consulting in 2004. Key actionsinclude the provision of support to majordevelopments such as the expansion ofthe port of Port Kembla, the West Daptoland release, City Centre RevitalisationStrategy and development of theWollongong Innovation Campus.Protecting our environmentThere were a number of signifi cantachievements in the area of environmentalmanagement. The Illawarra EscarpmentStrategic Management Plan wascompleted and adopted by Counciland the Minister for Planning. The plan,developed through extensive consultation,recognises environmentally signifi cantareas of the escarpment and foothills,looks at current land use and identifi esappropriate changes to better conserveand manage the conservation values ofthe landscape.Through our fi ve-year EnvironmentFund (2003-08), we continued our focuson waterways improvement by installingstormwater quality improvement devicesat two key locations to remove pollutantsfrom the stormwater system. We alsobegan a Sustainability in the Workplaceprogram to help businesses become moresustainable into the future, and completeda Sustainability Roadmap which outlinesbest practice case studies from aroundthe world and recommends ways tointegrate sustainability into Council'sdecision making and reporting framework.Southern Gateway CentreA development application was lodgedfor a landmark multi purpose tourist,restaurant and Indigenous educationfacility at the 'gateway' to Wollongongat Bulli Tops. Assessment required anumber of signifi cant and challengingenvironmental and Aboriginal heritageissues to be addressed. With these issuesnow satisfi ed, development consentwas anticipated by the end of July 2006with the tender process to begin shortlyafterwards.Thirroul District CommunityCentre and LibraryA development application was approvedin May 2006 for a new district libraryand community centre at Thirroul.We consulted widely in planning for thenew centre, and work is continuing onthe fi nal design of the internal layoutof the library. Tender documentationfor construction is being fi nalised andinvitations for tender will be sent out inAugust 2006. Construction is expected tobe completed by September 2007 withthe opening of the facility taking place inOctober 2007.Meeting financial targetsTo help meet targets identifi ed in ourfi nancial revision strategy, we reviewedprocesses to determine how the savingscould be achieved while maintainingrequired service levels to the community.As a result, we were able to reduceoperational costs without impacting onservice levels.Changes included improving our monthlyreporting and quarterly review processes,fi nalising a tax manual and carrying outassociated training, introducing electronicpayslips for staff with access to email,implementing a purchase card processand introducing an undergraduatedevelopment program to address currentand future resourcing issues in our fi nancearea.Managing our workplaceMajor improvements to our occupationalhealth and safety management systemincluded more user friendly access,availability of information and data throughthe intranet, incident reporting through adedicated phone system and electronicmanagement of the Corrective ActionSystem. To support the OHS initiatives,a marketing strategy, Get Smart StaySafe has been introduced to support thedevelopment and implementation of asafety culture among all staff.During the year a new enterpriseagreement was negotiated bymanagement and union representativeswithout industrial disputation. We alsoimplemented a skills and performancemanagement assessment system,representing a major change for theorganisation in that a formal assessmentis now used to recognise and rewardemployees for their work performance andprovide feedback on development needs.In another new initiative, we introducedan Emerging Leaders Program to identify,support and reward key staff memberswho demonstrate leadership potential.Cringila Place Management TrialWe completed a successful two yearplace management trial in the Cringila Parkand Berkeley precincts, resulting in siteimprovements and the establishment ofpartnerships with business, governmentand non-government sectors incollaboration with the community.Due to the success of the trial, Councilhas committed to an expanded three yearproject which will extend to other southernsuburbs of Wollongong. During the trial,the scope of the place management roleincreased signifi cantly to include projectsin Port Kembla and Berkeley includingsupport for an Indigenous initiative, theNgaraba-aan Walking Trail, and upgradingof facilities at Hill 60.Planning for West DaptoIn April, Council endorsed the West DaptoRelease Area Strategy for exhibitionwhich was the culmination of two yearsof studies, investigations, negotiationsand design concepts. The releasearea is likely to accommodate 19,000dwellings and approximately 200 hectaresof employment lands over a 40 yeardevelopment lifespan. The draft plans willbe exhibited in the second half of 2006 forcommunity comment.Refurbishing our central libraryWe appointed an architectural fi rm,Brewster Hjorth Architects, to overseethe design of the refurbishment of ourcentral library. Work continued on fi nalisingthe layout plans for both the groundfl oor and fi rst fl oor areas of the library,with consultant engineers and graphicsspecialists to be appointed shortly.Major Achievements13

Maintaining ageing infrastructureLike other councils around Australia,we face the challenge of having ageinginfrastructure - such as roads, bridgesand buildings - that requires signifi cantexpenditure to guard against seriousfuture problems. As part of a fi ve-yearcommitment to maintaining our city's$1.1 billion worth of assets, we spent$2.7m on road resurfacing in 2005-06, andare committing an extra $2m in the nextfi nancial year, making it our biggest everroad infrastructure maintenance program.Consulting our communityA major challenge in 2006-07 will bethe implementation of our communityengagement framework across theorganisation and the acceptance ofthe new framework and policy in thecommunity following the cessation offormal neighbourhood committees. We willneed to ensure the engagement policy andframework is implemented consistentlyand appropriately across all areas of ouractivities, and that we strive to meet thecommunity's increasing expectationsabout community consultation.Countering negative publicityBecause of the breadth of serviceswe provide and our role as a consentand decision making authority, Councilfrequently attracts criticism in the mediawhen individuals or groups don't agreewith specifi c policies or decisions. Atthe same time we remain committed toongoing community engagement andhonest and transparent communication.Our challenge is to ensure accurateand timely information fl ows to ouraudiences, and that we have appropriatemechanisms in place to hear and act onthe community's views.Handling development issuesDevelopment issues can often bringstrong reactions, and the counter staffin our Development Assessment andCompliance Division face an ongoingchallenge in dealing with emotivesituations. Staff can be placed in avulnerable position if customers aredissatisfi ed with advice given or feelthey are not being allowed to take theirpreferred course of action. During 2005-06we implemented a number of measures toimprove staff safety and security, includingdesign improvements to the front counterarea to provide better direct and casualsurveillance, allocating appropriatelytrained staff, and changing our proceduresto allow the initial acceptance of anapplication followed by closer examination.The outcome has been positive, with staffreporting feeling more secure and makingfewer calls for assistance.Providing employment landsThe Wollongong Local Government Areacontinues to experience a demand foremployment lands, along with zoningissues that are inhibiting the establishmentof a variety of businesses for potentialemployment outcomes. A three-stageIllawarra-South Coast Employment LandsStudy has now been completed, andfeeds into draft South Coast and Illawarraregional strategies.Our Offi ce of Economic Developmentis working closely with governmentagencies to identify areas that may beused for industrial land and examineexisting sites that might be reused fornew industrial business ventures. It isvital that employment opportunities becreated for the future population increasein Wollongong, particularly in view ofdevelopments such as the West Daptoland release.We are committing anextra $2 million next year,making it our biggest everroad infrastructuremaintenance program.

Financial challengesWe will continue to review processes inorder to make targeted savings under ourfi nancial revision strategy, while exploringadditional income sources. Our reportingprocesses will need to be adapted to fi trevised reporting structures in the2006-10 corporate plan. Another keychallenge, in the context of long-termfi nancial forecasting, is the recognition ofmajor projects on the horizon that havenot yet been quantifi ed or scoped. Thisissue was introduced into discussionsurrounding the revised corporate plan,but a methodology for quantifying andincluding these projects needs to befurther developed.One of the biggest challenges facedthis year was Australia's adoption of theAustralian equivalents to InternationalFinancial Reporting Standards (AIFRS)for fi nancial years beginning on or after1 January 2005 with inclusion of theseapplicable for the fi nancial year ending2005-06. The suite of AIFRS as issued byAustralian Accounting Standards Board(AASB) are sector neutral and apply to allreporting entities, be they profi t, public ornot for profi t.Meeting WorkCover requirementsAs a self insurer, Council must comply withoccupational health and safety legislationand the WorkCover Occupational Healthand Safety Model for Self Insurers.WorkCover conducted an audit on four ofthe 13 elements in the OHS ManagementSystem for self insurers. Another auditwill take place in mid 2007 to ensure weare meeting the necessary requirements.To achieve compliance we will need toensure all elements of the system areimplemented and relevant information andtraining is provided to staff, contractors,volunteers and visitors.Revitalising our city centreCouncil has been working with the NSWDepartment of Planning on a revised draftWollongong City Centre RevitalisationStrategy, to be publicly exhibited inAugust. When the strategy is ultimatelyadopted, our major challenge will be toturn the vision for the city centre intoreality. This will include implementinga system for the funding of vital publicinfrastructure and other measures toensure the city centre develops as anattractive, vibrant and liveable city heart.West Dapto facilitiesOne of our challenges in planning for theregion's last signifi cant urban releasearea at West Dapto, is the provision ofnecessary infrastructure at appropriatestages of the project. This includessourcing funding for large-scale transportinfrastructure such as the Fowlers Roadtraffi c interchange.Changing planning legislationThe past year has seen some signifi cantchanges to NSW planning legislation,including the introduction of a LocalEnvironment Plan (LEP) review panel,the eventual gazettal of a standard LEPtemplate, changes to existing usesrules, changes to Section 94 rules fordeveloper contributions, revised Section117 directions to guide the preparation ofdraft LEPs, changing requirements for thepreparation of development control plansand the introduction of regional strategies.Managing companion animalsA draft report on the implications of recentchanges to the Companion AnimalsAct is currently being considered. Newobligations relating to education, restrictedand dangerous dogs, and effectiveand responsible management requireadditional resources for Council to complywith the new legislation.The development and implementationof a signifi cant school education programand a restricted dog citywide auditprogram will provide a challenge for ourranger services section. Another majorchallenge is to ensure all new approvedoff-leash areas are operational and thatappropriate messages about these areasare successfully communicated.Streamlining Council recordsA key governance issue for Council is theway we manage our corporate records,including letters, emails, faxes andtelephone conversation records. Theseneed to be identifi ed and managed inaccordance with State Records NSWrequirements. Our challenge is to providean electronic document managementsystem to capture all such records andis also easy to use, reliable and containsthe necessary security controls. We haveimplemented stage one of the system, andits success will be measured prior to itsexpansion in the coming year.Major challenges15

Engaging the communityCouncil will consider endorsing aCommunity Engagement Options reportfollowing an extensive public exhibitionperiod. If adopted, we will have a range ofinnovative options for engaging with thecommunity, as well as fi rm endorsement ofa range of existing community consultationmethods.West Dapto land releaseThe West Dapto Release Area strategywill be exhibited in the second half of2006 for community input. The releasearea is likely to accommodate 19,000dwellings and approximately 200 hectaresof employment lands over a 40 yeardevelopment lifespan.City centre planThe revised Wollongong City CentreRevitalisation Strategy prepared inconjunction with the Department ofPlanning will be exhibited in August 2006and submissions invited. Following theexhibition period, submissions will bereviewed and the strategy adjusted, whereappropriate.Southern Gateway CentreThe development of the SouthernGateway Centre remains a priority andwith the pending issue of developmentconsent, processing the tenders andappointing the builder will be the nextchallenge in this project.Website upgradeDuring the year we will undertake amajor upgrade of our website to includegreater interactivity and ease of fi ndinginformation. The website will becomean increasingly important tool for thecommunity to access our services.E-tracking and e-lodgementWe will introduce broad e-lodgementof development applications, furtherenhancing the lodgement system andmaking the process simpler and speedier.An electronic tracking system will enableinternet access to Council’s developmentapplication register, applications onexhibition and determined developmentapplications.Customer service projectThe year ahead will see an emphasison addressing the signifi cant issue ofcustomer service throughout Council withthe development and implementation ofa strategy aimed at achieving measurableeffi ciencies and consistencies withinservice delivery systems. A morefocused effort on an organisation wideapproach to customer service shouldalso realise intended benefi ts of resourcerationalisation and increased customervalue.Development applicationcustomer satisfactionWe will analyse the data received froma customer satisfaction survey andimplement measures to further improvecustomer service in our developmentassessment area. Another survey willbe carried out at the end of 2006-07 toassess results.Economic developmentThe Wollongong Offi ce of EconomicDevelopment will continue a range ofstrategies, including a public relations andmedia campaign to promote the city toaudiences outside Wollongong. The offi cewill maintain its strong relationship with theIllawarra Regional Development Board,the Department of State and RegionalDevelopment and other governmentagencies to encourage inward investmentand outward promotion of existingbusinesses.RSPCA contractDuring the year, it's expected theRSPCA's new animal management facilityat Unanderra will become operational.An additional challenge will be to ensurethe RSPCA contract to undertakeCouncil's Pound function is fi nalised.Environmental managementAs part of a range of environmentalmanagement initiatives, we will installstormwater quality improvement devices(SQIDs) at a number of locationsthroughout Wollongong. Installation of theSQIDs will help to improve water qualityin local creeks and coastal lagoons byremoving rubbish and other pollutantsfrom stormwater.Wollongong foreshoreFollowing completion of the upgrade ofthe City Beach foreshore precinct, wewill undertake the design of the next twostages for the upgrade of the Wollongongforeshore. These include the provision ofa boardwalk at Belmore Basin and thewidening of the shared pathway adjacentto the North Beach pavilion.Thirroul district libraryWork on the establishment of a districtlibrary and community centre at Thirroulwill continue following approval of thedevelopment application in May 2006.Tender documentation will be fi nalised inconjunction with our Thirroul project teamand invitations for tender will be sent outin August 2006. Construction is expectedto commence in September 2006 andbe completed by September 2007, withthe opening of the facility scheduled forOctober 2007.

Central library refurbishmentThe fi rst stage of this project will involveestablishment of new staff areas anddemolition of the existing layout. Stage 2will see the library close for approximatelytwo months so total refurbishment of thepublic areas on the ground and fi rst fl oorscan occur. The library will re-open with atotally new and contemporary look, withexpanded and enhanced public areas andfacilities.Parks, pools and playgroundsWe will fi nalise the design and locationfor an accessible playground for mobilityimpaired children, and construct a newskate facility at Helensburgh. Workwill begin on identifi ed priority worksat Towradgi Park, we will undertakesignifi cant remedial works at Towradgi andBellambi tidal rock pools, and upgradelighting and irrigation at North Dalton Park,Fairy Meadow.Review of LocalEnvironmental PlanA comprehensive review of theWollongong Local Environmental Plan(LEP) 1990 will be completed and a newdraft citywide LEP prepared and exhibitedin 2007. Finalisation of this project willmean an updated overall plan to guidedevelopment across the local governmentarea.Recycling collection service2006-07 will see a change to recyclingpractices, with dividers removed from thecity's yellow top recycling bins. Residentswill no longer need to separate paper andcardboard recyclables from bottles, cansand containers, and as a result will fi ndmore room in the yellow top recycling binfor recyclables.Staff issuesThe year will see the completeimplementation and verifi cation of theOccupational Health and Safety (OHS)Management System to allow complianceat the June 2007 WorkCover selfinsurers audit. We will also continue toimplement the Leadership DevelopmentProgram which will see senior staffexposed to capability profi ling and oneon one coaching. Following fi nalisationof the fi rst annual review of the Skills andPerformance Management AssessmentSystem, improvement opportunities will beidentifi ed and adopted.The revised Wollongong City CentreRevitalisation Strategy prepared inconjunction with the Department ofPlanning will be exhibited in August2006 and submissions invited.The Year Ahead17

It was a momentousyear for tourism,with the completionof the long awaitedSea Cliff Bridge andthe inception of acampaign to promote‘Grand Pacifi c Drive’.

The Wollongong Local GovernmentArea is divided into six wards with twocouncillors elected to represent eachward. The Lord mayor is elected by allvoters from all wards.Role of major committees ofCouncilThe committee system allows councillorsto focus on issues by allocating suffi cienttime for debate, discussion and effectivedecision making. Minutes are takenof all meetings, an important factorin evidencing the transparency of thedecision making process.Environment and PlanningCommitteePurposeTo make decisions as delegated byCouncil and recommendations to Council,meeting on reports that originate fromthe Directorate of Environment andPlanning on Development Assessmentand Strategic Planning, Environment andHealth and Infrastructure Design issues.Audit and governance committeePurpose• To assist and advise Council infulfi lling its corporate governance andoversighting responsibilities in relationto fi nancial management and reporting,internal control structure(s) and overallmanagement of risk(s).• To foster stronger governance throughawareness of international best practicein fi nancial control and management andeffective committee operation.Number of council and committeemeetingsDuring the period under review, 11 Counciland 16 major committee meetings wereheld. These can be broken down into 11Environment and Planning Committeemeetings (of which all councillors are amember) and fi ve Audit and GovernanceCommittee meetings (only the Lord Mayorand three councillors are members).Fees, expenses and facilitiesprovided to the Lord Mayor andcouncillors during 2005-06Lord mayoral fees $58,765Councillor fees $262,080Payment of expenses andprovision of facilities to CouncillorsExpensesTravel – If a councillor is required to use theirprivate vehicle for Council related business,an allowance will be paid in accordance withthe enterprise agreement.Functions – Council will meet the cost of acouncillor attending a community function inthe role of councillor. The costs associatedwith a partner's attendance, whenspecifi cally invited as the councillor's partner,will be met by Council.Facilities• The Lord Mayor is provided with aPersonal Assistant, an ExecutiveAssistant and a fully serviced andmaintained motor vehicle for civic duties.• A mobile phone or blackberry device isprovided to councillors.• A computer laptop, together with ahome broadband connection is providedand maintained for councillors uponrequest.• A facsimile machine is provided andmaintained in each councillor's home.• A furnished Councillors' room isprovided within the administrative centre,which includes the provision of computerfacilities.Policy in relation to expenses andprovision of facilitiesCouncil has adopted a policy on theprovision of facilities and the payment ofexpenses. The policy outlined on page 218depicts the services and facilities providedto the Lord Mayor and councillors toenable them to discharge their civic duties.Total cost in 2005-06 for these facilitieswas $39,586.03, in addition to $6,230.81for the Lord Mayor in relation to hospitalityand $88,687.22 for councillors' attendanceat conferences, seminars and workshops.WARD 1Dave MartinMobile: 0409 228 147Fax: 4268 6889Email: dmartin@wollongong.nsw.gov.auBA, BEd, MEd, School Principal, fi rst elected1983, re-elected 1987, 1995, 1999, 2004. Auditand Governance, and Environment and Planningcommittees. Attended 11 Council and 14 committeemeetings.Alice CartanHome Phone: 4267 4496Mobile: 0407 934 545Fax: 4267 5423Email: acartan@wollongong.nsw.gov.auFull time Councillor, fi rst elected 2004. Environmentand Planning Committee. Attended 11 Council and 10committee meetings.WARD 2Janice KershawPhone: 4284 9367Fax: 4283 3308Email: jkershaw@wollongong.nsw.gov.auSection Manager, fi rst elected 1991, re-elected 1995,1999, 2004. Environment and Planning Committee.Attended 8 Council and 10 committee meetings.Val ZanottoHome Phone: 4285 5800Mobile: 0409 719 395Fax: 4285 5003Email: vzanotto@wollongong.nsw.gov.auFuneral Director, Company Director, GMQ (AGSM),GAICD, fi rst elected 2004. Audit and Governance, andEnvironment and Planning committees. Attended 10Council and 13 committee meetings.WARD 3Anne WoodMobile: 0417 650 392Fax: 4229 8136Email: awood@wollongong.nsw.gov.auBSc (Hons) 1st Class, Dip Ed, Author, Historian,Teacher, fi rst elected 2001, re elected 2004.Environment and Planning Committee. Attended 10Council and 8 committee meetings.David BrownHome Phone: 4228 7938Mobile: 0417 223 609Fax: 4226 3791Email: davidbrown@wollongong.nsw.gov.auBSc, Media Consultant, fi rst elected 2002, re-elected2004. Environment and Planning Committee. Attended11 Council and 11 committee meetings.

Councillor ExpensesMobile Phone$Fax/Phone$Broadband$Travelling$Conferences/Seminars andOther Functions$Fee Payment$Hospitality$Total$Darling 375.67 761.51 0 0 10,757.50 78,924.80 6,230.81 97,050.29Martin 2,704.51 208.72 190.77 1,299.34 0 20,160.00 24,563.34Cartan 1,069.69 511.64 627.42 2,423.52 7,033.00 20,160.00 31,825.27Kershaw 0 535.31 0 659.08 1,680.97 20,160.00 23,035.36Zanotto 1,496.48 590.21 127.18 756.90 9,681.00 20,160.00 32,811.77Brown 887.42 538.54 597.74 236.84 2,158.00 20,160.00 24,578.54Wood 2,252.45 999.22 493.88 354.78 2,436.00 20,160.00 26,696.33Griffiths 1,426.55 846.1 593.51 717.34 3,138.80 20,160.00 26,882.30Anthony 233.84 609.25 0 645.84 3,009.45 20,160.00 24,658.38Kent 977.51 447.92 595.63 1,507.84 10,698.00 20,160.00 34,386.90Gigliotti 1,180.56 388.52 429.08 1,070.12 5,580.00 20,160.00 28,808.28Jonovski 1,697.31 442.98 597.74 781.38 15,021.50 20,160.00 38,700.91Esen 1,902.93 587.78 506.60 700.88 17,493.00 20,160.00 41,351.19Total 16,204.92 7,467.70 4,759.55 11,153.86 88,687.22 320,844.8 6,230.81 455,349.22LORD MAYORAlex DarlingJeweller, fi rst elected 1987, re-elected 1995,1999. Elected Lord Mayor 2002, 2004. Auditand Governance, and Environment and Planningcommittees. Attended 11 Council and 15 committeemeetings.WARD 4WARD 5WARD 6Carolyn GriffithsHome Phone: 4229 4852Mobile: 0407 294 039Fax: 4225 8253Email: cgriffi ths@wollongong.nsw.gov.auFull time Councillor, fi rst elected 1999, re-elected2004. Environment and Planning Committee. Attended10 Council and 11 committee meetings.Andrew AnthonyPhone/Fax: 4271 4764Mobile: 0411 969 365Email: aanthony@wollongong.nsw.gov.auComputer Technician, fi rst elected 2004. Environmentand Planning Committee. Attended 11 Council and 11committee meetings.Tony KentHome Phone: 4261 3154Fax: 4262 8154Email: tkent@wollongong.nsw.gov.auRetired Manager, fi rst elected 1995, re-elected 2004.Environment and Planning Committee. Attended 11Council and 11 committee meetings.Frank GigliottiHome Phone: 4261 8121Mobile: 0417 462 156Fax: 4261 8137Regional Mobile Lending Manager, fi rst elected 2004.Audit and Governance, and Environment and Planningcommittees. Attended 10 Council and 15 committeemeetings.Kiril Jonovski - Deputy Lord Mayor (from 2004)Home Phone: 4226 5582Mobile: 0438 265 580Fax: 4225 8817Email: kjonovski@wollongong.nsw.gov.auBEng(Mech), Technical Offi cer and Interpreter, fi rstelected 1999, re-elected 2004. Environment andPlanning Committee. Attended 10 Council and 9committee meetings.Zeki EsenHome Phone: 4228 8283Mobile: 0402 695 806Fax: 4225 8475Email: zesen@wollongong.nsw.gov.auSmall Business Operator, fi rst elected 2004.Environment and Planning Committee. Attended 10Council and 8 committee meetings.Elected Representatives23

Our EnvironmentFund continues toinject one milliondollars a year overfi ve years into specifi cenvironmental projects.CEO's Overview21

T HE C HARTER OF THEP EOPLE OF W OLLONGONGWE THE PEOPLE OF WOLLONGONG ARE DETERMINED• to ensure the right of all our community to enjoy equal rights and be treated withequal respect, regardless of colour, race, ethnicity, creed or religion• to support an immigration policy wholly non-discriminatory on grounds of colour,race, ethnicity, creed or religion• to support the process of reconciliation with Aboriginal and Torres StraitIslander People in the context of redressing their profound social and economicdisadvantage• to maintain Wollongong as a culturally diverse tolerant and open society, united byan overriding commitment to our nation and its democratic institutions and values• to denounce racial intolerance in any form as incompatible with the kind ofcommunity we are and want to be.AND TO THESE ENDS WE WILL• actively promote the benefi ts of a cohesive, multicultural society• support the Council for Aboriginal Reconciliation's vision for a united Australia andlocal declarations of reconciliation with indigenous peoples• promote access and equity in service provision for all members of the community• address wherever possible the special needs of disadvantaged groups.COUNCILLORS AND THE CITY OF WOLLONGONG COMMIT TO THEABOVE CHARTER OF THE COUNCIL TERM OF 2004-08Alex DarlingLord Mayor, City of Wollongong

STATEMENT OF RECONCILIATION AND COMMITMENTWollongong City Council recognises that the original occupants and inhabitants of this land have lived in the area formore than 60,000 years. A number of clans and tribes spoke several languages and these people exercised traditionalrights over the area including the ownership of sacred and signifi cant sites.The original inhabitants and occupants of the land relied on the sea, lake and the escarpment to provide much of theirfood and sustenance for life. Numerous middens are still found in the area giving recognition to the gathering of thetraditional owners and inhabitants of this area. The establishment of European settlement has proved disastrous forthe indigenous people who suffered attacks from settlers, exposure to new diseases, loss of their land and disruptionto their traditional way of life. Wollongong City Council's Statement of Commitment is built on the legacy of thetraditional owners and inhabitants of these lands and the continuing contribution of the Aboriginal people to the localarea.In making this Statement of Reconciliation and Commitment, Wollongong City Council wishes to acknowledge that itis built on the ideals set out in the Australian Declaration Towards Reconciliation, The Road Map for Reconciliation andthe Australian Local Government Association Statement of Commitment.In making this commitment, Wollongong City Council acknowledges and gives recognition to the fact that this landand its waters were settled as colonies without treaty or consent; that the Aboriginal people of the area are the fi rstpeople and they have, as a result of the invasion, suffered deep loss and grief caused by the alienation from theirtraditional lands, the loss of lives, freedom and the forced removal of children. Council also acknowledges the rights ofindigenous Australians to live according to their own beliefs and customs and gives due respect and recognition to thecontinuing customary laws, beliefs and traditions of the indigenous people of the area.Wollongong City Council supports the people's movement towards Reconciliation and seeks to give practicalexpression to this process through its actions. Council also supports working together in partnership with all sectionsof our community to ensure the principles of equity, access and human rights are provided for all members of theindigenous community through the provisions of culturally appropriate services and programs.As a local government authority, Wollongong City Council commits itself to:• ensuring local indigenous involvement in events and celebrations of signifi cance which respect the dignity andprotocols of the local Aboriginal community;• the ongoing development of strategies to improve the level of participation of local Aboriginal people in localgovernment decision making process;• ensuring all Council staff, through the induction program, are exposed to relevant education and cultural awarenessto assist in their knowledge, understanding and appreciation of Aboriginal cultural heritage and the needs of theAboriginal community;• ensuring that the Aboriginal employment strategy continues to be implemented, enhancing the prospects forAboriginal people to be employed within Wollongong City Council;• annually celebrating Reconciliation Week and NAIDOC Week;• fl ying the Aboriginal fl ag in front of the administration building;• actively promoting the protection of Aboriginal heritage and culturally signifi cant areas within the city.Wollongong City Council acknowledges that the Aboriginal culture continues to strengthen and enrich our communityand that the area is now occupied by people who are drawn from many different lands who share the values oftolerance and respect of one another. As a leader in the community, Council pledges itself to fi ght against injustice andto overcome disadvantage within its area of jurisdiction, in an effort to bring about a city which is recognised for itsvaluing of the community and its history, and in the provision of justice and equity for all.Adopted by Wollongong City Council at its meeting held on 17 April 2001 and committed by Council for itsterm 2004-08.Date: 27 April 2004 Councillor Alex Darling Rod OxleyLord MayorGeneral ManagerStatement of Reconciliation and Commitment25

How we plan what we doWollongong City Council has a tieredplanning framework that cascadesorganisational plans from the strategicplan through to individual work plans.This linkage allows our employees to makethe transition from the conceptual to theoperational level.Strategic planOur strategic plan, Focus on the Future,(1997-2006) has a ten year focus.It identifi es and expresses the aspirationsheld for Wollongong over that periodand develops clear directions for the city.The community, councillors and staff allworked together to identify the directionfor Wollongong's future in this plan.During 2005-06 work commenced onthe development of a new strategic plan(2006-15) for the organisation: Tomorrow'sCity. The new Plan continues to providestrategic direction for the organisationinto the future. It is based around sevenprograms and identifi es associated goals,and functional outcomes and strategies.Corporate planOur fi ve year rolling corporate plansupplements the strategic plan. It providesclear direction to the organisation andhighlights the implementation of keyinitiatives. More specifi cally, it is a way tocommunicate our goals, directions, keyobjectives and performance indicators towhich we aspire over the next fi ve years.It also outlines specifi c projects that willcommence in the coming year.It is a fully budgeted plan structuredaround ten programs: City Development,Infrastructure, Environment and Health,Commercial Development, WasteManagement, Recreation and NaturalResources, Community and CulturalServices, Library Services, OrganisationalServices, and Environmental ManagementProgram.Each represents a principle activityand provides a strong framework forthe 39 functions contained within theprograms. Reviewed annually and placedon public exhibition, it allows us to setfuture policy directions in partnershipwith the community whilst, at the sametime, improving the corporate planningprocess. Next year's corporate plan willbe structured to align with Council's newstrategic plan Tomorrow's City.Business planBusiness plans are linked to eachfunctional area and designed to helpachieve objectives set out within thecorporate plan. The business plansprovide detailed action plans on how wewill go about achieving the objectivesand performance indicators outlined inthe corporate plan. They also provideoperational information relating toworkplace management as well as servicedelivery. The business plans are linked toan annual budget and are produced on anannual basis and submitted to executivemanagement for review and endorsement.Work planEmployees have their own work plansfrom which they perform their day to dayoperations. Each work plan links directly tothe appropriate business plan and outlinesmajor tasks and responsibilities for eachemployee or work team. Each employee,or work team, is assessed on the extentto which they have fulfi lled their workoutcomes over the previous twelve monthperiod.How we report what we doComplementing our planning process isa tiered reporting process that defi nesour progress in meeting objectivesand key strategies. This linkage allowsmanagement and employees to furtherrefi ne their strategies to achieve theorganisation's vision and mission.Monthly progress reportsEach division reports on its business planoutcomes on a monthly basis. Theseare submitted to executive managementfor consideration. The reports outlineperformance against business planobjectives and include other managementinformation directly relating to governanceissues. Budgeting and other key fi nancialinformation is also part of this process.Quarterly corporate reviewsThe quarterly corporate reviews report onprogress against the activities, objectivesand key performance indicators outlinedwithin the corporate plan. A fi nancialassessment of performance for the quarteris also included in the review. If necessary,the quarterly reporting process allows forany necessary adjustments or fi ne tuningto be made to the corporate plan.

The reviews ensure that the communityis regularly updated on the progress of allinitiatives contained within the corporateplan. Our aim as Wollongong's governingbody is to report and deliver the contentsof the plan to ensure the best outcome forthe city. Next year's quarterly corporatereviews will be aligned to the new 2006-10corporate plan structure.Annual reportThe annual report details our success,or otherwise, in meeting the objectives,key activities and performance indicatorsoutlined in the corporate plan. It isstructured around the ten programshighlighted in the corporate plan with eachprogram representing a principle activity ofCouncil.The annual report also provides arange of information required under theLocal Government Act, 1993, that mustbe disclosed by councils each year.These relate to corporate governance,access and equity, public disclosureand special needs services. The annualreport also contains detailed externallyaudited fi nancial statements. In all, it isa comprehensive document aimed ataccountability and clarity in reportingorganisational performance.Feedback mechanismsOpportunities exist at each stage ofthe planning and reporting processto solicit and receive feedback fromkey stakeholders and the community.Feedback is crucial in planning anddelivering services within a soundperformance management framework.PLANNINGCOMMUNITY ANDCOUNCILLORSVISION, MISSION,VALUESSTRATEGIC PLANCORPORATE PLANWORK PLANSCOUNCILSERVICESCOMMUNITY,COUNCILLORSAND AWARDSFEEDBACKANNUALREPORTQUARTERLYCORPORATEREVIEWSMONTHLYPROGRESSREPORTSREPORTINGPlanning and Reporting Framework27

Ecological sustainable development, nowknown simply as sustainability, is not new.Many communities around the world havebeen grappling with this issue. To facilitatea global approach to sustainability, theUnited Nations established the WorldCommission for Environment andDevelopment in 1983, with the primaryrole of proposing long-term strategiesto achieve sustainable developmentthroughout the world.Since then, the United Nations has helda series of earth summits and scientistshave advanced the debate with fi ndingsof global warming and excessive levelsof carbon dioxide in the atmospherefrom burning fossil fuels. To embrace asustainable future, cities around the worldmust move to a carbon free or at least acarbon reduced economy.A sustainable city is one that isadaptive to the risks and opportunitiesthat changing climates and resourcedepletion will cause. If we can reduce ourdependence on some key resources, wewill provide long-term benefi ts both forour organisation and the community, onenvironmental, social and economic costs.A city is becoming more sustainableif it is reducing its resource input (land,energy, water, material) and its wasteoutputs (gases, liquids, solid waste),while increasing in liveability (health,employment, community activity, leisureactivities, public spaces, land, pedestrianaccessibility).Wollongong City Council has beenworking with the community to becomenot just a more sustainable organisation,but a more sustainable community.Our ground-breaking SustainabilityBegins at Home program providedinformation, hands-on workshops,product discounts and rebates onselected sustainable products. Thecommunity response was very positive,and we followed this initiative with anequally innovative Sustainability in theWorkplace program. This has focused onthe hospitality and manufacturing sectors,in partnership with Sydney Water andIntegral Energy. We have prepared a reporton our sustainability performance underthe Global Reporting Initiative framework.A sustainable city is onethat is adaptive to therisks and opportunitiesthat changing climatesand resource depletionwill cause.Progress towards a sustainable future istracked through fi ve simple questions:1. Where are we now?Council has collected data on our water,energy and waste for the benchmark year2001-02.2. Where are we currently headed?Council assessed water, energy and wastedata from 2001-02 to the present.3. Where do we want to go?Council sets targets for reducing resourceconsumption and waste consumption.4. How do we get there?Actions are built into corporate planningprocesses.5. How are we going?We track our progress throughperformance indicators (see tableopposite). Council has produced aSustainability Roadmap to coordinate ourorganisational approach and help ensureour progress is integrated into the planningand decision making process.This will enable the community to assessour path to sustainability in a transparentway. We will continue to develop andrefi ne the performance indicators, whichare outlined in our triple bottom linereporting format, segregated into BuiltCapital, Human or Social Capital, andNatural Capital.

Built capital is all the human derivedstructures and includes our built assetsand our resource uses associated withthem. Cities are essentially linear in theiruse of resources and production of waste(see below).resourcesecospherehumansphereecospherewasteHuman capital is defi ned as the total ofour skills and knowledge. Governmentagencies around the world faceincreasing community expectations ofbetter social services and access toinformation. Our challenge is to manageour internal environment to meet thesechanging and growing expectations. Inaddition, emerging trends in the labourmarket mean we will need to be fl exible,innovative and adaptive to attract andkeep staff.Natural capital is the ecosystem withinwhich we all live, and the ecologicalprocesses on which life depends. 'If thefl ow of services from industrial systems isto be sustained or increased in the futurefor a growing population, the vital fl ow oflife-supporting services from living systemswill have to be maintained or increased.For this to be possible will requireinvestments in natural capital.'(Hawken, Lovins and Lovins, 2000)This triple bottom line report providesCouncil and the community with indicatorsto begin tracking our city's sustainabilityperformance.Global Reporting Initiative (GRI) FrameworkPerformance IndicatorsBuilt CapitalHuman CapitalNatural CapitalCouncilCommunityIndicator 01-02 05-06 Indicator 01-02 05-06RevenueWater usekLRates andannualchargesTotalincome fromcontinuingoperations$82,370,000 Rates andannual charges$137,130,000 Total incomefrom continuingoperations$100,090,000 Waste tolandfill(tonnes)$157,735,000384,693* 329,748+ Water usekLLTI 34.5 33.1 BushcarevolunteerhoursCouncilVolunteers(TosserSquad)RipariancorridorrestorationBotanicGardenPlantDistributionStormwaterreuse kL21 52 Number ofBushcaregroups0^No of nativesplantedm 2 weeded23,479 76,13845,900 48,949Numberof plantspurchasedby thecommunityas partof thecommunityGreenplanprogram0^ 35,000 Numberof nativesplanted(Bushcare)109,214 95,40535,372,070# 32,557,7397,354 20,38936 4719,875 21,55516,919 24,261Legend: * Baseline year is 00/01 (data not available for 01/02); # Baseline year 99/00; + Data for 04/05, Data not yet available fromSydney Water for 05/06; ^ No riparian corridor restoration or stormwater reuse projects were completed prior to 02/03; LTI is Lost TimeInjury; kL is kilometres; m 2 is square metres.Sustainability29

Wollongong City Council aspires tobecome more socially responsible byincreasing our management capabilitiesfor corporate social responsibility.Our programs are framed within astrategic management and organisationaldevelopment perspective that recognisesour overall role in our community andsociety generally, and promotes andfosters good governance and ethicsacross the organisation.Government agencies such as ours oftenfi nd it diffi cult to build stakeholder trust,gain support for decisions, and developinnovative solutions to meet diverse andconfl icting commercial, environmental,social and ethical needs. Engagingstakeholders across dissimilar and evenadversarial boundaries requires a newapproach in the 21st century and we'reseeking to forge stronger, more strategicand profi table relationships with ourcustomers, suppliers, employees and thebroader set of community stakeholders.Council plays a key role in a wide rangeof complex projects, bringing togetherrepresentatives of diverse groups withconfl icting interests to develop new andinnovative solutions and policies throughour existing programs and initiatives.During 2006-07 we will endeavour toformalise our role in corporate socialresponsibility through better defi nition ofour corporate programs, strategic planningand overall resource allocation basedon the quadruple bottom line approach.This will ultimately be delivered throughan improved strategic managementframework and measurement tools forassessing the effectiveness of the fi ve coresocial responsiveness capabilities withinour spheres of infl uence:Stakeholder engagementValue from improved communicationand dialogue are ideally integrated withstructural and behavioural components ofthe other capabilities to:• Build cooperative, sustainable andmutually supportive relationships;• Refl ect core organisationalbehaviour as staff are better able tounderstand interdependencies withstakeholders; and• Enhance Council's structure anddecision making processes.Ethical behaviourThis refl ects our behaviour through thebuilding and maintaining of a caringworkplace atmosphere, where staffsincerely care about the wellbeing ofeach other. Such a change needs tobecome embedded within our structureand be demonstrated through a formalcommitment to ethical behaviour throughthe development of codes of ethicalpractice, the implementation of rewards forexcellent ethical behaviour and sanctionsagainst unethical behaviour.Social accountabilityThis occurs at a behavioural level whenCouncil management demonstrates itsfi rm accountability to stakeholders for oursocial impacts, and it occurs at a structurallevel through systems for reporting socialperformance levels and outcomes, evenwhen the news is negative.Valuable communicationThis relies on our ability to demonstratethe value of well considered andtargeted communications and for staffto understand and pass on importantinformation to all parts of Councilin a timely manner. To be effective,communication staff must be able todetect value changes in the communityand be supported by the broadermanagement team in the critical effort ofaligning Council and stakeholder values.DialogueAn effective dialogue is accepted as onewhere the parties agree about the waytopics are selected for discussion andare satisfi ed with the setting within whichdiscussions are advanced. Dialogue alsoforms an important basis for achievingoutcomes that are genuinely desired by all,as it is based on openness and respect forall as free and moral agents.We intend to assess and measure thesecore components of social responsivenesson an ongoing basis, through:• Integration with corporate planningprocesses,• Integration with strategic planningprocesses,• Embedding in forum agendas andreporting templates and tools, and• Oversighting by the ExecutiveManagement Committee.We already undertake much of the effortrequired to report against this modelthrough:• Regular monitoring of staff attitudes andculture through organisational surveysacross a broad range of issues;• Promoting a transparent and openorganisational culture;• Actively engaging with our communities.In 2006-07 this will be enhancedthrough delivery of multi-channelsystems including electronic, paperbased, advertising, community forumsand feedback groups;• Reporting adverse outcomes and issuesannually;• Developing our broader managementteam through formal evaluation andmodifi cation of cultural behaviouralmanagement styles;• Preparation of annual rolling fi ve yearcorporate plans based on the quadruplebottom line; and• Actively managing our economicand business ventures against ouroverarching responsibilities to thecommunity, environment and withregard for ethical responsibilities.During 2006-07 we will endeavour to formaliseour role in corporate social responsibility throughbetter defi nition of our corporate programs.

Chief Executive Offi cerRod OxleyPSM B Bus, FCPA, FAICD,FLGMA, FAIMPhone 4227 7009Background in fi nancialmanagement prior tocommencement at WollongongCity Council as City Treasurer in1980. Appointed to the positionof General Manager(now CEO) in 1988.Chief Financial Offi cerChief Information Offi cerStephen PayneB Com, CPAPhone 4227 7280Extensive experience as seniorfi nance and IT executiveacross private and publicsectors. Appointed Directorin 2002. Responsible forGovernance, Finance,Information Technology,Commercial Projects andProperty. Appointed to dual roleof CFO and CIO in February2006. Chair LGMA GovernanceNetwork.Sustainability Group ManagerJoe ScimoneBE Grad Ind Rel, MBA, FIE (Aust)Phone 4227 7188Extensive operational andstrategic managementexperience in civil engineeringand board memberships in thefi elds of health services andtertiary education. AppointedGroup Manager Sustainability inFebruary 2006, after serving asManager Engineering Services.Responsible for DevelopmentAssessment and Compliance,Design and Environment andHealth.Chief Operating Offi cerSue Baker-FinchB Sc Hons MBAPhone 4227 7113Extensive executivemanagement experience withingovernment, not-for-profi tand commercial contexts.Appointed Chief OperatingOffi cer in 2006. Responsible forWorks and Services, Recreationand Natural Resources,Community and CulturalServices, Library Services andCity Centre operations.Group ManagerPeople and CultureAndrew StratfordMBA - Hort. Cert - Adv Cert.MgtPhone 4227 770726 years experience inthe delivery of a range oflocal government services.Appointed Group Managerin 2006. Responsible forCorporate Planning and HumanResources and IndustrialRelations.Manager FinanceBrian JenkinsB. BusPhone 4227 764421 years experience in fi nancialmanagement within theindustry. Appointed managerin 2002.• Financial Accounting• Management Accounting• Accounting Services• Rates• Revenue• Treasury FunctionsManager Technologyand AdministrationLyn KofodMBA, B CommPhone 4227 7092Extensive experience in IT andinternal service managementfor local government and theprivate sector. Appointed in1994.• Legislation and Elections• Council and CommitteeSupport• Information Technology• AdministrationManager CommercialProjects and PropertyPeter CoyteBA (Economics)Phone 4227 709535 years experience ineconomic development,property development andfi nance working in both thepublic and private sectors.Appointed manager in 2005.• Property Development• Property Management• Tourist Parks• Crematorium and CemeteriesManager DesignPeter KofodBE Civil (Hons), MBAPhone 4227 7208Worked in the civil engineeringand IT fi elds for 26 years.Appointed manager in 1992.• Civil• Design• Flood Mitigation• Land Information• GIS• Landscape Architecture• Structural/ArchitecturalManager DevelopmentAssessment and ComplianceJohn GilbertGDURP, CURP, Local Gvt Cert Ord4 (Building)Phone 4227 728429 years experience in localgovernment. Appointedmanager in 2003.• Development Assessment• Building Inspections• Fire Safety• Subdivision Approvals• Legal & Risk• Statutory Property• Community Land• Commercial Projects

Our management structure is comprised of an executive management team made up of the Chief Executive Offi cerand four group Managers who oversee policy, strategy direction and overall management of the organisation.Our sixteen senior managers are each responsible for operational management and day-to-day activities.Manager Environmentand HealthLisa MillerBScPhone 4227 733120 years experiencein environmentalmanagement in public andprivate sectors. Appointedmanager in 1999.• Environmental Policyand Management• Environmental Protection• Health Protection,Inspections andComplaints• Animal Management• Environment and HealthEducation• Ranger ServicesManager Communityand Cultural ServicesIan McClintockBA, Mpol (Soc Pol)Phone 4227 723526 years experience in arange of positions withinthe community servicessector before joiningCouncil in 1994. Appointedmanager in 1996.• Community Development• Community Facilities• Aged and DisabilitiesServices• Youth Services• Cultural Services• Children’s ServicesManager City CentrePaul FanningGCertMgmt, AFAIM, AFAMIPhone 4226 118829 years managementexperience in localgovernment, marketing,event management andreal estate.• Wollongong City Centre• Crown St MallManager Library ServicesSusie RobertsAALIAPhone 4227 740936 years experience ina number of localgovernment librariesbefore joining Council.Appointed managerin 2003.• Library(Acting) ManagerRecreation andNatural ResourcesMark BondB.Bus (Business Management),Dip Sports SciencePhone 4227 704420 years experience inRecreation Facilities andParks Management.• Conservation andNatural Resources• City Parks• RecreationManager Works and ServicesJohn ShepherdARMIT (Dip Civ Eng)Phone 4227 7216Involved in the engineering/construction industries in boththe public and private sectorsfor 35 years. Appointedmanager in 1999.• Transport Infrastructure• Drainage Infrastructure• Buildings• Plant and Fleet• Workshop and Stores• Emergency Services• Geotechnical andLaboratory Services• Project Management andEngineering Support• Waste ServicesManagerCommunicationsand Public RelationsNeryl EastMA, PhDPhone 4227 706225 years experience inorganisational media andpublic relations management;television, radio and printjournalism.• Communication Strategy• Media Liaison• Events and Functions• Website and Advertising• Internal CommunicationsManagerCity StrategyFay StewardBA (Psychology)GDURP Grad Dip Bus. AdminPhone 4227 731719 years experience in strategicplanning sector. AppointedManager in 2003.• Policy Planning• Traffi c and TransportManagement• Heritage Conservation• Section 94• Urban DesignManager Wollongong Offi ceof Economic DevelopmentBob DoylePhone 4251 479935 years experience at a seniorlevel in public administrationincluding Departmental Headlevel in the Northern TerritoryGovernment. General Managerof Wollongong Image Campaign1999-2004. Appointed in 2004.• Economic DevelopmentManager Corporate Planningand Business ImprovementDick DowsePhone 4227 7093Extensive experience inInformation Technology andstrategic management in thepublic and private sectors overthe last 27 years with businessimprovement skills. Appointedto current position in 1998.• Organisational Planning• Corporate PerformanceReporting• Business ImprovementManager Human ResourcesTrevor JonesB ComPhone 4227 7064Extensive experience in a rangeof human resources activities in anumber of positions in the privateand public sector. Appointedmanager in 2000.• Occupational Health and Safety• Workers Compensation /Injury Management• Organisational Development• Recruitment• Performance Management• Industrial Relations• Learning and DevelopmentSenior Management33

Reporting FrameworkChief Executive OfficerRod OxleyManagerCommunications andPublic RelationsNeryl EastManagerCity StrategyFay StewardManagerWollongong Office ofEconomic DevelopmentBob DoyleGovernance GroupChief Financial OfficerStephen PayneSustainability GroupGroup ManagerJoe ScimoneOperations GroupChief Operating OfficerSue Baker-FinchPeople and Culture GroupGroup ManagerAndrew StratfordManagerTechnology andAdministrationLyn KofodManagerFinanceBrian JenkinsManagerCommercial Projectsand PropertyPeter CoyteManagerEnvironment and HealthLisa MillerManagerDesignPeter KofodManagerDevelopment Assessmentand ComplianceJohn GilbertManagerCity CentrePaul FanningManagerCommunity andCultural ServicesIan McClintockManagerLibrary ServicesSusie RobertsManagerRecreation andNatural ResourcesMark Bond (acting)ManagerWorks and ServicesJohn ShepherdManagerHuman Resources andIndustrial RelationsTrevor JonesManagerCorporate Planning andBusiness ImprovementRichard DowseSenior Management Structure31

PROGRAM GOAL: To provide corporate governance atthe local level that meets the requirements of statelegislation and exercises strategic leadershipand direction for our role in the community.

Our commitment to goodcorporate governanceGovernance is the process by whichdecisions are taken and implemented and,in turn, how the organisation achieves itsgoals and outputs. Governance is veryimportant to all organisations and recentevents, particularly in the corporate sector,have emphasised the importance of theprinciples underpinning excellence inthis area. They have also demonstratedthe consequences to the enterprise, itsstakeholders and society, when goodgovernance breaks down.Excellence in governance occurswhen governance is underpinned byaccountability, integrity and openness.Governance is a value-adding activity,and by demonstrating excellence in thisarea, an organisation streamlines andimproves the clarity of its operationsand communication, which ultimatelybenefi ts the community and increasesthe possibility of organisational objectivesbeing achieved effi ciently and effectively.Key performance indicatorsSick leave:Small improvement from previous year.Carers leave:Result in line with previous year.Good governance at Wollongong CityCouncil covers the rules and regulationswithin which we work to demonstratehigh levels of integrity and accountabilityin the conduct of our business. It includesthe Chief Executive Offi cer's responsibilityto oversee the proper conduct andmanagement of organisational businessand is critical to ensuring our organisationoperates on a legal and ethical basis,that decisions are taken in the overallinterests of all stakeholders, and that theorganisation acts as a good corporatecitizen and civic leader.In the public sector, good governance canmake a signifi cant contribution to improvingpeople's lives. When local governmentspractise better governance, more effectiveuse is made of limited resources, thecommunity is more connected andengaged, and they receive better andmore effective services. Good governanceoptimises outcomes to meet the higheststandards of public accountability.Lost time injury frequency rate:Target not met due to a high incidence of manual handling injuries combined withslips, trips and falls.Medical treatment injuries:Improved result.Lost work days due to lost time injuries:Target not met. This target was impacted by the lost time injury frequency rate.Employees undertaking learning and development activities:Target exceeded.Council's charterSection eight of the Local Government Act(1993) provides the charter for councilsand defi nes 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 mayorThe mayor is elected to representthe views and directions of Council inperforming various roles and duties.Roles and duties fall into six broad areas:• Governance• Chair of Council• External relations• Media management• Support for the community• CeremonialThe fi rst two are critical to goodgovernance. Governance coversleadership of the Council and community,ensuring good relationships, communitycohesion, inclusiveness, and modellingand promoting high standards ofbehaviour and practice. The 'Chair ofCouncil' role specifi es that formal decisionmaking processes are well run, areinclusive, and exhibit high standards ofgovernance. The mayor must take a rolesimilar to the facilitator of a group and assuch, consider what is necessary to makethe group run successfully. Conceptssuch as participation, communication,involvement, consensus, mutual respectand listening are important. The mayor'sskills in facilitation will play a key rolein ensuring the Council operatessuccessfully. The mayor can also supportgood governance by modelling goodbehaviour and ethics in fulfi lling the Counciland community leadership roles.Performance Against ObjectivesCorporate GovernanceExpenditure $3.04mCorporate GovernanceIncome $0.01mExecutiveManagement$3.04mCorporate Governance expenditurevs. total Council expenditureTotal Corporate Goverance expenditure was $3.04mor 1.87% of total Council expenditure ($162.82m).ExecutiveManagement$0.01mCorporate Governance incomevs. total Council incomeTotal Corporate Goverance income was $0.01mor 0.01% of total Council Income ($157.74m).Corporate Governance35

Corporate GovernanceRole of councillorsCouncillors are required to directand control the affairs of Council, inaccordance with the Local GovernmentAct (1993). They participate in theoptimum allocation of resources for thebenefi t of the city, and play a key role inthe creation and review of policies.Council and councillors have a numberof roles to undertake and they must dothis with the supports that are available.Councillors are usually elected havingpromised to achieve or oppose goals andissues. Their major challenge, therefore,is to have their issues adopted by theCouncil as part of the Council's plan,policies or programs. They must dothis by convincing suffi cient numbers oftheir colleagues to support their ideas orplatforms. They also set objectives andcriteria in regard to regulatory functionsand are required to review organisationalperformance, service delivery,management plans and revenue policies.Councillors are responsible for effectinggood corporate governance throughtheir accountability, compliance with thelaw, and by ensuring that managementdirection is aligned with communityinterests.Following Council elections, councillorshave a formal and lengthy inductionprogram where they are provided withthe tools and training to enable themto fulfi l their statutory roles as electedrepresentatives. Training in other areasis ongoing, as is regular attendance atseminars and conferences.Governance manualand code of conductCouncil adopted a governance manualin 2004 to support and guide newlyelected representatives in their actionsand deliberations. The manual providescontext and detail for both councillors andthe lord mayor, key governance policies ofthe organisation, and our code of conductadopted in early 2005. The manual hasbeen recognised as innovative by theMinister for Local Government and copieshave been widely distributed to localgovernment authorities around Australia.It has been widely disseminated amongstaff, contractors and volunteers who havehad the opportunity to attend a variety ofbriefi ng and awareness training sessionsconducted by the head of governancewithin Council. The manual and its relatedcode of conduct are to be refreshed andre-presented in mid 2006, coupled with anongoing awareness program.Council is represented on a range ofgovernance peak bodies and is ableto access and contribute to debate ongovernance best practice.CorporateGovernance OutlookOur corporate goalsreach across divisional,functional andcorporate boundariesto provide guidance inthe activities of all staff.A key factor in beingable to achieve thesegoals is monitoringour fi nancial,environmental,social and ethicalperformance. Inthe coming yearwe will undertakefurther reviews ofkey performanceindicators to provide amore comprehensiveset of measures foreach individual goal.Wherever possible,outcomes will beassessed against bestpractice standards.Our new corporatestructure will enhanceour ability to serveour communitiesand provide clearerstrategic planningand direction. Theestablishment of formalfi nancial, technologyand commercialbusiness strategicplans will demonstratethese improvements.Council meetingsand decision makingOur system of committees, reference andadvisory groups was upgraded in 2004 toassist councillors to focus on issues andto provide suffi cient time for research anddebate, discussion and effective decisionmaking. Consistent with the adoption ofour governance manual, we also revisedour committee structure to streamlinereview processes and the conduct ofbusiness generally. This ensures Counciland other stakeholders are able to accessreports at the earliest opportunity, witha view to supporting more informed andtimely debate on issues.Additionally, all Council proceedings aretranscribed. This policy is an importantfactor in demonstrating the transparencyof our decision making processes.Good governance throughcommunity consultationWe continually review the role of ourcommunity in decision making processes.Effective communication is the key toensuring that service delivery is in linewith community expectations and todemonstrate openness and transparencyin our dealings.In May 2006, Council proposed 41channels for consultation and feedback,some representing cutting edge innovationin how government speaks to andlistens to its communities. We have alsoestablished a specialist advisory team toensure all areas within Council undertakecomprehensive and complete communityconsultation wherever necessary.36

Council ManagementRole of Chief Executive OfficerSection 335 of the Local Government Act(1993) outlines the responsibilities of theChief Executive Offi cer (CEO) of Council.These are to manage the organisation'sday-to-day operations, exercise relevantdelegated functions, direct, appoint ordismiss staff, and implement an equalemployment opportunity plan. Theperformance of the CEO is measuredthrough a performance agreement, as partof a multi-year employment contract. TheCEO is chair of the executive managementcommittee, the peak management teamwithin Council.Leadership and directionOur management structure is made up ofan executive management committee andsenior management group. During 2005-06 we implemented a new corporatestructure, giving heightened focus tothe key areas of sustainability, andmanagement of our organisation's peopleand culture. The executive committee isnow comprised of the CEO and four groupmanagers - the Chief Financial Offi cer,Chief Operating Offi cer, Group ManagerSustainability and Group Manager Peopleand Culture - and is responsible for policy,strategic direction and overall managementof the organisation, while ensuring dailyoperations are effective and accountable.The key activities of executivemanagement are to manage strategicrelationships with stakeholders, ensureCouncil's interests are well presentedat all levels of government, formulateorganisational strategies and supportingpolicies, and ensure services are alignedwith community needs. Executivemanagement must also developstrategies for workplace agreements thatbalance the needs of our staff with thoseof the community and develop fi nancialstrategies that provide options andpriorities for service delivery.The senior management team is made upof 15 divisional managers who preside overday-to-day specialised operation. Membersof the executive and senior managementteams are employed on a maximum fi veyearperformance contract, with formalperformance review and assessmentundertaken on an annual basis.Council's senior staff receivedevelopment training and from time totime are required to undergo psychometrictesting to guide their development.The executive management committeeidentifi es and nurtures emerging leaderswithin the organisation through a formaland ongoing development program.Corporate managementCouncil has an established set ofcorporate values and key governanceprocesses that are embedded in ourorganisational culture. These values andprocesses infl uence our business activitiesand determine the overall ethical behaviourof the organisation.Councillors and staff are guided by a setof key documents contained within ourgovernance manual, including our code ofconduct.Councillors and management arecommitted to the principles of continuousdisclosure and take a proactive approachto ensure this obligation is fulfi lled. Thisincludes a requirement to declare thenature of any interest they may have inbusiness to be dealt with by Council, andstaff disclosing their pecuniary interestsif they are involved in the acquisition ofgoods and services.The organisation also maintains acorporate gift and donations registerfor employees to disclose any personalbenefi ts received in undertaking theirduties. This information is supplied inwriting and incorporated in a register. It isCouncil's policy that offi cers should notreceive benefi ts from business associatesor members of the community, except inaccordance with the policy. These recordsare open to scrutiny and available forperusal by the community on request.Council’s major committee, the Environmentand Planning Committee, meets to discussplanning issues in the city.Corporate Governance37

During 2005-06 weimplemented a newcorporate structure,giving heightenedfocus to the key areasof sustainability, andmanagement of ourorganisation's peopleand culture.Executive Management team meeting(clockwise from front): Stephen Payne,Sue Baker-Finch, Andrew Stratford,Rod Oxley and Joe Scimone.

Monitoring workplace strategiesOur enterprise agreement contains aseries of key performance indicators thatare closely monitored by the organisation.Progress is submitted on a monthly basisfor consideration by executive managementand a joint consultative committee,representing management and employeeinterests, to ensure all areas of theorganisation are appropriately monitoredand improved. Further internal reportingto senior management and a variety ofperformance reporting systems also ensurewe deliver the best possible workingconditions for our employees, casuals,part-time employees and contractors.Assessing service deliveryWe evaluate our service delivery throughcommunity surveys, undertaken eitheron a project by project basis or as anoverall performance survey. Executiveand senior managers review results,implementing actions wherever necessary.We commission the Illawarra RegionalInformation Service (IRIS) to conduct amajor community satisfaction survey everytwo years, with the next one due in 2007.Other community surveys are undertakenfrom time to time to better informCouncil's decision making and directions.Internal audit programWe work with our internal audit partnerand advisor KPMG to undertake acomprehensive and rolling annual riskassessment and internal audit program.This initiative provides a strong level ofconfi dence in our business controls andoperational performance, in line withinternational risk assurance best practice.The organisational program is coordinatedby our Chief Financial Offi cer underthe auspices of the governance group,executive management committee andCouncil's Audit and Governance Committeewhich is the peak body for the oversight ofaudit functions on behalf of the Council.The results of the 2005-06 internalaudit program are included in the tableoverleaf and cover a diverse range ofareas. The program is driven by an annualorganisation risk assessment that showshow key operational risks are moving overtime. Council has now gathered threeyears of risk movement data to assist inboth good governance objectives andbusiness improvement.External audit programIn addition to the services provided by ourinternal auditors, we have also appointedPriceWaterhouseCoopers as our externalauditors to conduct services, as required,including the auditing of our annual fi nancialstatements and reports. The scope of theexternal audit is reviewed by the Audit andGovernance Committee, with input andadvice from internal auditors.Audit and Governance CommitteeThe main function of the Audit andGovernance Committee is to provide aninternal control framework to assist andadvise the organisation on fulfi lling itscorporate governance responsibilities, inrelation to fi nancial management and theoverall management of organisational risk.Membership of this key governancecommittee is comprised of threecouncillors, an external independentrepresentative with one member overallrequired to have a fi nancial background.Non-voting members are the CEO; ChiefFinancial Offi cer; Manager Finance; tworepresentatives from our external auditors,PriceWaterhouseCoopers, and tworepresentatives from our internal auditorsKPMG.The committee fosters strongergovernance by observing internationalbest practice in fi nancial control andmanagement, including compliancewith applicable accounting standardsand accepted accounting principles.The other main area of focus is effectivecommittee operation within its charterand membership to support the internalaudit program to best practice standards.To assist with skills development withinthe committee, KPMG and our ChiefFinancial Offi cer delivered a developmentand training program for the internal auditfunction, targeting committee members,councillors and senior management.Councillor Val Zanotto is the Chair ofthe Audit and Governance Committeeand the Lord Mayor, Councillor AlexDarling, is a committee member, in linewith international best practice principlesfor the management and governance ofaudit committees. The committee meetsa minimum of four times per year and hasa formal charter in place, which refl ectsinternational best practice principles.KPMG material in relation to the effectiveoperation of the committee is providedin hard copy and electronic format tocommittee members and others.Governance groupThe governance group was establishedin February 2006 in line with thecorporate restructure of Council, to leadthe organisation's fi nancial and generalgovernance affairs and to act as thepeak body for fi nancial policy setting anddirection. A voting core is made up of theChief Financial Offi cer, other executivecommittee members and the ManagerFinance. This group oversees anddirects the organisation's sustainability,governance, compliance and strategicfi nancial direction.This group oversights governance forthe organisation and reports to executivemanagement in ensuring all areas offi nancial, technology and compliancemanagement are effective, effi cient andaccountable. Its key activities are:• to lead the organisation in ensuring thehighest and best practice standards offi nancial management, reporting andforward planning through its role as thepeak body for fi nancial policy settingand direction.• to lead the organisation in its technologyand knowledge management affairsto ensure best practice standards ofinformation management, reportingand forward planning through its policysetting and direction role.• to ensure the highest standards ofcompliance across all areas of theorganisation.Model code of conductOur employees operate under astrict code of conduct in line withstate government standards for localgovernment. We strive to maintain thehighest standards of personal integrityand to ensure strict legal compliance andadherence to best practice policies. Apartfrom setting legal and ethical standardsfor our councillors, staff, management,contractors and volunteers - all of whomare required to observe the modelcode - it promotes a spirit of service tothe community, as well as responsiblemanagement practices and high levels oforganisational competence and effi ciency.The code of conduct was deployedin early 2005 as a key component ofour organisational governance manual.The ongoing education and awarenessprogram is delivered by the head ofgovernance, our Chief Financial Offi cerand representatives from our Legal andRisk branch, and supported by rigorousinternal programs in place to promoteethical work practices and businessculture and the prevention of corruptionand fraud.Our code is stronger than stategovernment requirements in the areas ofaccess to and liaison between councillorsand staff, and in the area of confi dentialityand public media commentary. Trainingsessions for councillors, staff and otherswere conducted throughout 2005-06 andwill continue on an ongoing basis.Corporate Governance39

Internal audit review outcomes 2005-06Review Timing Review Observations OutcomeAnnual RiskAssessmentAug 05• Annual update of organisational and control risks informing the rolling three yearinternal audit programAdopted by Council &Executive CommitteePurchase CardProceduresNov 05• Dual credit card systems• Appropriate application documentation has been completed• Purchase cards have been appropriately authorised• Appropriateness of credit limits• Usage of cards complies with Council’s policies• Independent review of transactionsAll recommendationsagreedPayrollProcessingDec 05• Payroll staff resourcing and communication• Review and authorisation responsibilities• Detail of payroll reconciliation• Documentary evidence• Authorisation and review of changes to employee master fi le• Currency of employees in Aurion database• Salary and wage rates in accordance with enterprise agreements• Management of temporary payroll arrangements for staffAll recommendationsagreedBusinessContinuityManagementFeb 06• Business Impact Analysis• IT DR approach and progress-to-date• BCM timeline and progress-to-dateAll recommendationsagreedSuccessionPlanningProcessesApr 06• Key operating position identifi cation• Council’s policies and procedures• Staff awareness of Council’s policies and procedures• Appropriateness of key operating positions• Staff training and development initiatives• Timeliness of staff appointments to key positions• Management of staff acting in higher grade positions• Appropriateness of staff retention and recruitment strategiesAll recommendationsagreedWaste FacilitiesRevenue andCash CollectionProcessesApr 06• Helensburgh inbound boom gate• Till Security• Manual docket books• EFT facilities• Recurrence of security prompt error• Inbound display angle at Helensburgh• Change at Whytes Gully during peak trade• Safe location at Whytes Gully• System rounding• Waste operator access• Classifi cation of transactions• Policies and procedures regarding revenue collection• Management reviewAll recommendationsagreedMaterialManagementProcessApr 06• Inconsistency between Finance 1 and store• Review of nature and volume of inventory holdings• Authorisation and issuance of store items• Physical barriers to entry• Internal store transfer• Material Supply Assistant authorisation limits• Training of store personnel• Minimum stock levels in Finance 1• Policies and procedures for the management of stock and storesAll recommendationsagreedLISInformationManagementProcess [Draft]Jun 06• Consistency of information captured• Automation between key systems• Past property notices and orders• Fee tables agree with Council’s fees and charges• Method of fee calculation• Multiple access points calculating fees• Management of manual forms and templates• Usage of TRIM to support LIS informationDraftrecommendationsagreedExecutiveand SeniorManagementSalary Packaging[Draft]Jun 06• Processing responsibility for higher grade pays• Processing of luxury car tax deduction and payment• Documentation and approval of Council’s remuneration policy and procedure• Pre-payments of entitlements• FBT treatment and applicability to packaged items• Quarterly and year end reconciliation of remuneration packages• Information provided to senior management regarding quarterly position• Responsibility for salary packaging administrationDraftrecommendationsagreed

Conduct committeeOur conduct committee's charter is toinvestigate corrupt conduct, waste ofpublic resources (maladministration),breaches of the organisational code ofconduct or any complaint made by amember of the community. Closer linksare being forged between the NSWOmbudsman's offi ce and the IndependentCommission Against Corruption (ICAC).The committee is comprised of the LordMayor, CEO, two councillors and anindependent external person appointed byCouncil. It is hoped that this initiative willprovide a greater level of independenceand impartiality to the investigation ofall matters brought to the committee'sattention.In the instance of a complaint beingmade by or against the mayor or the CEO,the deputy mayor, or another councillorwho has been designated by Council, willtake the place of the mayor or CEO on thecommittee.Councillors are required to reportsuspected breaches of the code ofconduct to the CEO, preferably in writingin the fi rst instance and refrain frommaking allegations at Council meetings.Where appropriate, the CEO will report thematter to the conduct committee. Wherethe CEO has determined not to reportthe matter to the conduct committee,the CEO will give the complainant thereason(s) in writing.Council's conduct committee isresponsible for making enquiries intoallegations of breaches of the code ofconduct by councillors and must either:• determine not to make enquiries intothe allegation and give the reason/s inwriting,• make enquiries into the alleged breachto determine the particular factualmatters, or• engage an independent person to makeenquiries into the allegation to determinethe particular factual matters.Enquiries made by the CEO, anindependent person or the conductcommittee will follow the rules ofprocedural fairness.Whistle blowingOur code of conduct and conductcommittee encourages responsiblereporting (whistle blowing) on unethicalconduct or fraud by employees,councillors or others. The policy providesprotection for those who discloseinformation and provides a frameworkfor investigations and reporting. Anyoneproviding information is able to makeappropriate reports in confi dence, freefrom any risk of reprisal. In line with bestpractice, Council intends to set up anindependent hotline for complaint handlingand fi ltering during 2006-07.Information privacyand protectionWe believe the responsible handling ofpersonal information is a prerequisite tostrong democratic governance, and weare committed to protecting an individual'sright to privacy. We make every endeavourto advise how personal information iscollected, how it will be used and how itcan be assessed by the person providingthe information.When dealing with personal informationwe require councillors, staff, contractorsand volunteers to comply with:• the Privacy and Personal InformationProtection Act 1998,• the Health Records and InformationPrivacy Act 2002,• the Information Protection Principles andHealth Privacy Principles,• Council's privacy management plan,and• the Privacy Code of Practice for LocalGovernment.Personal information is defi ned asinformation or an opinion about a personwhose identity is apparent, or can bedetermined from the information oropinion.Freedom of informationand accessUnder the Freedom of Information Act, thepublic has the right to apply for accessto certain Council information, includingthe opportunity to personally view thedocuments and obtain copies. Thisinformation covers a wide range of areasand subjects that do not infringe personalprivacy policies.One of our key values is to be an openand accessible organisation, and anyperson wishing to obtain access toinformation held by Council is encouragedto contact our public offi cer for assistance.Details of applications made during 2005-06 are provided in this annual report. Inaddition, there are a number of documentsavailable including strategic and corporateplans, annual reports, annual budgets,meeting agendas and minutes. Most areeasily accessed via our website, librariesor administration centres and offi ces.Michael Szafraniec and Megan Fitzgibbon, SocialPlanning, discuss the draft corporate plan withBerkeley residents at a community kiosk.Corporate Governance41

Governance group outcomes 2005-06Coverage Focus ProposedoutcomeAssociatedbenefitsProgress in 2005-06Financial Performance Plan achieved ImprovedcustomerfeedbackTechnology Performance Plan achieved ImprovedcustomerfeedbackKnowledge Performance Plan achieved Improvedcustomerfeedback• Production of Financial Strategic Plan 2006-11• Assignment of key performance indicators• Achievement of $4.2M in bottom line savings and net revenues• Assignment of AA+ credit rating from Standard and Poor• Oversight of commercial business strategic plans• Production of draft Technology Strategic Plan 2006-11• Rollout of improved desktop and secure environments• Oversight of key technology projects• Five year capital program approved• Securing of IT related cost savings• Commencement and progress with content management projects• Introduction of full electronic document environmentCompliance Performance Full compliance ImprovedperformanceStrategic Plan Best Practice Plan achieved Improvedperformance• Research into alternative compliance systems models• Restructure planning for improved compliance function across theorganisation• Commencement of full suite of corporate strategic plans• Rollout of fi nancial and commercial business plansCorporate GovernanceOrganisation risk assessmentThe internal audit program is supported byan annual organisational risk assessment,designed to evaluate, monitor and controlkey operational and organisational areasof risk. The risk assessment also outlinesthe nature and extent of audit activityrequired to improve the overall risk profi leof the organisation and to optimisecorporate governance performance. Thematters raised are then prioritised by theexecutive management committee and theAudit and Governance Committee priorto forwarding to our internal auditors forimplementation of a program of reviews.The 2005-06 risk assessment highlighteda range of favourable movements inthe organisational risk profi le over theprevious two years. The next assessmentis scheduled for July 2006 and will movethe organisation to the next plateauin risk management, improved riskmeasurement and the implementation offormal risk management and mitigationstrategies. This is intended to inform andhelp operational and corporate managersachieve their business outcomes througheffective risk management and oversight.Key risk areas identifi ed and monitoredinclude:• Capacity to match expectations• Strategic business planning andmeasurement• Balance business/political needs• Strategic asset management• Industrial relations impact on business• Financial management• Management of public perceptions• Business continuity and disasterrecovery planning• IT security• Controls around major work (projectmanagement)• Section 94 currency and compliance• Match remuneration to market (staffretention)• Loss of corporate knowledge• OH&S management• Project management of West Dapto landdevelopment• Identifi cation and use of community landfor operational purposes• Local Environment Plan outdated• Purchasing/procurement issues• Key person loss• Information management• Business competition• Management of housing andemployment land supplyRisk management policyOur risk management policy is tocontinually pursue the management ofrisks in order to minimise (or eliminate)personal injuries, damage to assets(including the environment) and damageto the good reputation of Council. TheCorporate Asset Management ProtectionSystem (CAPS) is our formal processfor the identifi cation, evaluation andprioritisation of risks.Council's insurers and underwriterscontinue to deliver cost savings to Councilagainst most of its insurance policies inlight of these liability risk managementsystems. During 2005-06, Councilmanagement completed a mapping andassessment of the organisation's liabilityrisk profi le, and this was integrated intoits overall risk profi le to provide, for thefi rst time, a comprehensive overview of allrisks and their profi le and movement overtime. Council has a team dedicated tothese areas of corporate endeavour, andapproaches the management of risk inthree ways:42

Strategic risk managementThis attempts to ensure we meet allnecessary requirements. We have anobligation to comply with the law andto effect appropriate liability insurancecoverage.Informal risk managementWe respond to the risks which areidentifi ed from the diverse, informalsources of information available includingfrom members of the public, Council'soffi cers, the experiences of Council andof others and from the fl ow of informationand precedents.Formal risk managementThrough our CAPS system, we apply aprocedure in the workplace to identifyexisting and known risks as well as riskswhich have not yet materialised intodamage to people or property.Peter Weber and Stephen Payne brief staff onCouncil’s code of conduct.Pre-emptive treatment of these risks isan essential component of Council'scomprehensive risk managementprogram.CAPS uses internal resources tomaximise offi cer ownership and toavoid external costs to the organisation.The system identifi es areas where risktreatments can be easily undertakenor where more detailed investigation oraudit of risk is required. The informationproduced by CAPS can assist theimplementation of direct loss controland/or management of risk throughprioritisation and decision making on theallocation of Council's limited resourcesfor the treatment of risks. CAPS is credibleand acceptable to offi cers, insurers andauditors because it is transparent and easilyunderstood. The system promotes qualitymanagement by producing data derivedin the workplace from the identifi cationof hazards, measurement of risk andcontinuous improvement through ongoingreduction in the value of Council's risks.Responsibility forrisk managementOur executive management teamensures that risk management policiesare implemented and are appropriateover time. The Chief Financial Offi cer hasday to day carriage of these areas, andto achieve this objective, the Legal andRisk Branch oversees the managementof risks at a strategic level and on formaland informal bases. The branch prepares,reviews and maintains documentationfor Council activities that require riskprotection provisions.Council's risk management coordinatoracts as mentor and coach to Counciloffi cers for the purpose of managingthe identifi cation and treatment of risksand implementing CAPS. The offi cercoordinates risk management informationfor Council divisions, implements riskmanagement systems and maintainsrisk management awareness byactively assessing developments in themanagement of risk through publications,networks and seminars. For detailedinformation on risk management projects,refer to the Legal and Risk function report.Corporate Governance43

PROGRAM GOAL: To provide direction for the futuregrowth and sustainability of the City of Wollongong.Mark Biondich from our Subdivisionsection monitors a local constructionsite to ensure it meets industrystandards.

Economic DevelopmentPromoting WollongongThe Wollongong Offi ce of EconomicDevelopment, established by Councilin July 2004, has carried out a rangeof activities in 2005-06 to promoteWollongong's image as an attractive placefor the relocation or establishment ofbusiness. It took part in 15 trade shows,using its 'Wollongong Open for Business'brochure, and attracted 86 investorenquiries from sectors including heavymanufacturing, bulky goods distribution,chemical processing, telemarketing andcommercial and retail.Eleven new businesses were attractedto the city in areas as diverse as heavyindustry, construction, coal, warehousedistribution, tourism and accommodation,and medical education. Nine existingbusinesses underwent expansion. Thesewere in the heavy industry, construction,hospitality, freight and call centre sectors.Economic DevelopmentReference GroupThe Economic Development ReferenceGroup, with representation from Council,business and industry organisations, wasestablished to provide advice to Councilon economic development policy and tomonitor the implementation of any actionplans in relation to economic developmentactivity within the city.Issues considered by the group in2005-06 have included road, rail andsea transport links, the WollongongInnovation Campus, liaison andcoordination of activities with variousother government agencies, lobbyingfederal and state government on majormatters, assisting the development oflocal small businesses, and investigationof three major potential employmentinitiatives for the city.Bob Doyle, Office of Economic Development,promotes the city as an attractive place forinvestors to establish or relocate their business.Maintaining the Crown St MallThe Crown St Mall is a key player in theeconomic life of Wollongong, and Council,through its Wollongong City CentreManagement team, works hard to ensurethe mall is maintained to the community'ssatisfaction. A shopper survey conductedby the Illawarra Regional InformationService in July 2005 showed mostrespondents found mall services andfacilities to be of high importance, with ahigh level of satisfaction.During the year we carried out anextensive upgrade of lighting in the mallincluding additional night fl ood lighting,and we updated entrance signs andinstalled new directional signs. Soundsystem and public address speakersthroughout the mall were replaced, workwas carried out on all power outlets, and acomplete re-painting of the mall began inJune 2006.EconomicDevelopmentOutlookOur aim is toencourage investmentin Wollongong, supportexisting businessesand work with otheragencies to create localjobs. We will promotethe city centre, improvesecurity in the CrownSt Mall and ensurethe mall is maintainedto the community'ssatisfaction.Performance Against ObjectivesCity DevelopmentExpenditure $9.32mCity DevelopmentIncome $5.21mEconomicDevelopment$2.40mBuildingCompliance$1.40mDevelopmentAssessment$1.42mStrategicPlanning$2.54mEconomicDevelopment$0.93mBuildingCompliance$0.55mDevelopmentAssessment$2.22mStrategicPlanning$1.05mTraffi c andTransport$0.91mTraffi c andTransport$0.26mSubdivisions$0.65mSubdivisions$0.21mCity Development expenditurevs. total Council expenditureTotal City Development expenditure was $9.32mor 5.72% of total Council expenditure ($162.82m).City Development incomevs. total Council incomeTotal City Development income was $5.21mor 3.30% of total Council income ($157.74m).City Development45

Improved mall securityHours for mall security guards werereviewed, with guards now patrollingduring business hours and with someadditional evening patrols.Design work commenced for a majorprogram to install closed circuit televisioncameras throughout the mall. This projectis on track for completion in December2006.Economic Development websiteCouncil's website contains informationrelating to the Offi ce of EconomicDevelopment and this was furtherexpanded in 2005-06.Due to the diversity of informationrequired, it has taken longer thananticipated to develop a comprehensiveset of web pages on economicdevelopment. This will be done as partof a major redevelopment of Council'swebsite in 2006-07.Tourist mine projectCouncil has conducted ongoinginvestigations into the feasibility ofconverting the former Elouera coal mine atWongawilli into a tourist attraction.Due to the current high world pricefor coal, the working life of the intendedtourist mine has been extended, and thishas delayed any further action on thetourist mine project.Wollongong EconomicDevelopment RoadmapThe Wollongong Economic DevelopmentRoadmap was completed by BuchanConsulting in 2004, and has since beencomplemented by the Wollongong LGAEconomic Development Strategy.The Offi ce of Economic Developmentis now implementing recommendationsfrom the strategy, with key actionsincluding the provision of support to majordevelopments such as the expansion ofthe port of Port Kembla, West Dapto landrelease, City Centre Revitalisation Strategyand the Wollongong Innovation Campus.Employment landsAnother important role of the Offi ce ofEconomic Development is to identify andencourage the release of employmentlands by corporate entities andgovernment agencies.During 2005-06 there has been ongoingliaison with real estate agents and theNSW Department of Planning aboutthe identifi cation and release of suitableemployment lands in the WollongongLocal Government Area.StrategicPlanning OutlookOur focus is to bring anumber of key planningprojects to fruition,including the city centrerevitalisation strategy,the developmentof West Dapto, anintegrated plan for thelocal government area,and the revitalisation oftargeted town centres.

Strategic PlanningWest Dapto urbanrelease projectWest Dapto is the last signifi cant urbanrelease area in Wollongong, and one ofthe last in the Illawarra region, capableof meeting the city's housing demandsfor the next 40 years. The 3,400 hectarerelease area is located between theIllawarra Escarpment and the existingresidential areas of Dapto. The futureurban development of West Dapto is beingplanned to provide ready access to publictransport, local employment opportunities,social and community facilities, wellmanaged conservation areas, lifestylechoices and a range of housing typesincluding affordable and sustainablehousing.During 2005-06 various studies werecompleted examining a number of criticalissues. These included endangeredecological communities, indigenousand non-indigenous heritage, bushfi re,fl ooding, transport and access issues,connection to the existing communities,establishment of adequate social andrecreational facilities and provision of theinfrastructure required to service the newand existing population.A draft local environmental study anddraft master plan were prepared whichidentifi ed a potential developable areaof 1,328 hectares. Based on a range ofdwelling types, this area is centred ona number of towns and urban villages,and will yield approximately 19,000dwellings over a 40 year period. A draftlocal environmental plan (LEP), draftstaging plan and draft infrastructureimplementation plan were also prepared.Council endorsed the draft documents inMarch for public exhibition, and a briefi ngsession for landowners in May wasattended by 100 people.The draft LEP was endorsed by Councilin April 2006. Subsequently, the NSWDepartment of Planning released a newLEP template which required revision ofthe endorsed draft LEP, and the reviseddraft LEP was endorsed by Councilin July 2006. The documents will beexhibited for two months in the secondhalf of 2006, and a draft developmentcontrol plan (DCP) and draft section94 developer contributions plan arealso being prepared for an anticipatedexhibition period later in the year.An integrated plan for the cityCouncil has endorsed a revised programto prepare a draft local environmentalplan to replace the Wollongong LocalEnvironmental Plan (LEP) 1990. Initialconsultation with the community andstatutory authorities was undertaken in2004-05 through the Wollongong Futuresproject, which identifi ed issues of concernto be addressed during the plan'spreparation. The project was delayedwhile the state government prepared andfi nalised its new LEP template, gazettedin March 2006.Completed supporting studies includea housing study, open space recreationand community facilities strategy, andretail centres study. Other studiesbeing prepared include an employmentlands strategy, and traffi c and transportstrategy. It's expected the new draft LEPwill be reported to Council in December2006, prior to exhibition.In a separate project, an interim review ofthe Wollongong LEP 1990 was gazettedin April 2006 by the Minister for Planning,following its endorsement by Council inJune 2005. The interim review proposes aseries of amendments to the existing LEPto correct anomalies, refl ect best practiceand improve readability.Review of section 94 plansWe completed an extensive review ofour existing section 94 contributionsplans which led to the adoption on 14June 2006 of the City-wide Section94A Contributions Plan. In adopting thenew plan, all existing section 94 planswere simultaneously repealed with theexception of the plan relating to thesuburb of Horsley.The section 94A plan will allowus to continue to collect developercontributions to deliver necessary publicinfrastructure, amenities and servicesfor both current and future populations.More importantly, the section 94A planhas been directly aligned to the corporateplan. This further enforces the importanceof the corporate plan as a singledocument which sets Council's directionand provides the community with inputand an overview of our major projectsand activities, including budget, for thenext fi ve years.City Centre Revitalisation StrategyThe draft Wollongong City CentreRevitalisation Strategy was exhibited inSeptember - October 2005. The strategyoutlines the vision for the WollongongCity Centre and encourages economicgrowth, good urban design, increasedemployment and housing choices,improvements to public domain spaces,and sustainable transport solutions. Thestrategy included a draft LEP, draft DCP,draft public domain master plan, draftaccess and movement strategy and drafteconomic development strategy.One hundred and twenty sevensubmissions were received as a result ofthe exhibition, and Council adopted thestrategy as its policy position in December2005. Subsequently, the Minister forPlanning nominated Wollongong asone of six regional cities to receivestate government planning focus, andappointed a task force to review the draftstrategy. A revised strategy, comprisinga vision document, LEP, DCP and civicimprovements plan, is expected to beexhibited in August 2006.Finalising the Thirroul CentreDevelopment Control PlanThe Thirroul town centre serves thenorthern villages and exudes a relaxed,low key ambience. Community surveyshave indicated users of the centre donot want great change and that any newdevelopment should be low in scale.Working with a local community steeringcommittee, we prepared a draft DCP forpublic exhibition. A public meeting washeld in December 2005 to present thedraft plan to the community, and as aresult of feedback the draft was amendedbefore being adopted by Council inApril 2006. The DCP will guide futuredevelopment, enhance public domain andencourage fi ne grained retail to enhanceand promote a strong village feel.Dapto town centre revitalisationThe Dapto town centre is a sub-regionalarea that serves the suburb of Daptoand surrounding areas. The centre'simportance will increase in future years, asit is destined to service the needs of theWest Dapto release area.In March 2005 Council endorsed theDapto Town Centre Revitalisation Studyfor exhibition. A public meeting was heldin May and was attended by 100 people.The exhibition period has been extendedto coincide with the exhibition of draftplans for the West Dapto release area.Joel Thompson, Jon Bridge andKathy Adams from our StrategicPlanning Division look out overthe city centre.47City Development

City DevelopmentPort Kembla main streetcontrol planDue to budget and staff resourcingissues, this project was rescheduled to beundertaken in 2006-07.The project will include the developmentof a plan to encourage the upgrading andimprovement of commercial buildings andthe public domain of Wentworth Street inPort Kembla, to make it a more attractiveand safe centre for residents, businessoperators and visitors.Foreshore Linkage Master PlanA Foreshore Linkage Master Plan hasbeen prepared to improve pedestrian andcycle linkages, and guide developmentand public domain improvements betweenthe Wollongong City Centre and the city'sforeshore area. The master plan has beenincorporated into the revised City CentreRevitalisation Strategy.Development control plan forresidential developmentDuring the year we completed a review ofDevelopment Control Plan (DCP) No. 49- Residential Development. The new DCPincorporates development controls from theformer DCP 9 and DCP 49 and a numberof minor plans into one updated policydocument for residential development.Heritage valueof city’s coal minesA research project reviewing the heritageof the city's coal mines was completedand is scheduled to be reported to Councilin August 2006. The project was partiallyfunded by the Department of MineralResources. Coal mines have played animportant part in the city's developmentand a systematic review is important forthe conservation of signifi cant relics andremaining structures.Landuse strategy for the portWe began preparing a landuse strategyfor the port of Port Kembla - one of threemajor ports in New South Wales andsubject to a signifi cant increase in trade inthe coming years.The landuse strategy is being preparedin conjunction with major stakeholders toguide future development in the port andto streamline the approval process.Traffic and TransportCity Centre Accessand Movement StrategyCouncil adopted the City CentreAccess and Movement Strategy inDecember 2005, recommending thedevelopment of detailed traffi c andtransport implementation plans for themanagement of access and movementthrough the city centre.Of the fi ve implementation plansrecommended by the strategy, thoseon traffi c management, car parking andpublic transport were largely fi nalisedin 2005-06. The remaining two, onpedestrians and cyclists, will be completedin 2006-07.The main focus of each of theseelements is to achieve improved transportintegration aligned with the design featuresoutlined in the City Centre Public DomainMaster Plan.City Centre Integrated Busand Traffic Management PlanAn Integrated Bus Operations and Traffi cManagement Implementation Plan is nearcompletion, assisted by the developmentof a large scale traffi c simulation model.Key recommendations of the plan willinclude opening the Keira Street bus mallto general traffi c, reconfi rming the need toupgrade Wollongong Railway Station withimproved integration with other forms oftransport, establishment of a city centrering road, and further investigation of acity centre shuttle bus service. The fi nalreport is expected to be completed inOctober 2006.Traffic andTransport OutlookKey projects for thetraffi c and transportfunction includeimproved accessand movement, busoperations and parkingas part of the city centrerevitalisation strategy,along with upgradingof Wollongong RailwayStation. We also havea strong focus onpedestrian and roadsafety issues.City Centre ParkingImplementation PlanWork progressed on a car parkingimplementation plan, aimed at ensuring anappropriate supply of parking is providedinto the future, taking into accountsustainable travel demand managementobjectives while at the same timerecognising the role car parking plays inthe city centre's economic viability.Among other things, the plan analysesfuture parking demand, identifi esproposed future locations for parkingstations, aims to reduce inner city traffi ccongestion and provide better use ofthe existing on-street road space, andencourages the use of public transport,walking and cycling.The scope of the parking planassessment was extended to testchanges proposed in the City CentreLocal Environment Plan (LEP) along witha variety of parking pricing scenarios,to ensure the fi nal number, size andlocation of parking stations meet the city'sneeds under a number of different futureplanning scenarios. This additional work isexpected to be completed in the secondhalf of 2006.Development applicationreferrals to traffic andtransport section1,00080060040020026636636549501-0202-0303-0404-0567405-060Development applications referralsto the traffi c section continueto increase, due to the rate ofdevelopment in the city and thepublic’s increased interest indevelopment related traffi c issues.Traffic committee issuesdiscussed and endorsed55050045040035030039638750543601-0202-0303-0404-0538605-06Traffi c committee issuesinvestigated, recommendedand endorsed by Council havedecreased since 2003-2004,refl ecting an increase in issuesdealt with under offi cer delegation.48

City centre west trafficand parking studyThe city centre west study focuses onimproving traffi c and parking aroundWollongong Hospital, and complementsthe bus and traffi c planning workundertaken within the City CentreIntegrated Bus Operations and Traffi cManagement Implementation Plan.A community consultation surveyrevealed numerous concerns, mostlyabout parking. The study is nearcompletion, and recommendations willinclude establishment of a transportworking group for the area, improvementto footpaths, cycle links, lighting, andpedestrian and cycle crossing points,installation of metered parking for premiumparking spaces fronting the hospital, anda 'travel smart' plan for the hospital andsurrounding businesses. The fi nal report isexpected to be completed in the secondhalf of 2006.Woonona pedestrianimprovements2005-06 saw progress onrecommendations from a PedestrianAccess and Mobility Plan (PAMP)developed for Park Road, East Woonona.Public exhibition of the plan generatedsignifi cant interest and additionalcommunity feedback, leading to thedevelopment of options that weresubsequently presented to the communityat a fi nal meeting in early 2006.While the report recommended a ‘sharedzone’ for Park Road, the communityand stakeholders showed overwhelmingsupport for the alternative option,comprising a more traditional 40km/h ‘highpedestrian area’ incorporating thresholds,a marked foot crossing, kerb blisters,pedestrian refuges and edge line marking.Council endorsed this scheme as well asother recommendations such as improvedfootpaths, parking areas, signage andlighting. We will begin implementing the fi rststages of the plan in 2006-07.Traffic and Transport’s Andrew Byerssurveys traffic as part of thepedestrian access and mobilityplan in East Woonona.City Development49

City Development50Dapto Accessand Movement StrategyThis study forms part of the DaptoTown Centre Revitalisation Strategy,and addresses pedestrian, cyclist andvehicular access and circulation, publictransport and car parking.While the traffi c planning componenthas experienced delays due to the needto incorporate it into broader strategiesfor the development of West Dapto, theadditional analysis and planning is beingfi nalised and completion is expected earlyin 2006-07.Wollongong Railway StationPrecinctIn late 2005 we fi nalised a conceptmaster plan for the Wollongong RailwayStation precinct as part of the CityCentre Revitalisation Strategy. Theplan provides for an upgrade of theexisting station incorporating a transitinterchange with improved access forall modes of transport. It also includesappropriate development adjacent to thestation which would integrate with andsupport the transport interchange, whilealso enhancing the urban design andeconomics of the West Crown Street area.The plan shows development potentialworth around $400 million integrating witha major $30 million station and publictransport upgrade.A summary master plan document hasbeen produced, and the study will beconsidered by Council for endorsement aspart of the City Centre Revitalisation suiteof documents later in 2006.Bicycle planCouncil endorsed the City of WollongongBicycle Plan 2006-11 as a planning toolfor bicycle facilities across the WollongongLocal Government Area. The plan wasprepared by Council's Bicycle PlanningTask Force in consultation with variouscommunity groups and cycle users.The plan provides strategic directionon the effective construction andmaintenance of cycling facilities andidentifi es a number of routes to beconsidered for construction over thecoming years.To further promote public awarenessabout safe and healthy cycling, Counciljoined the Roads and Traffi c Authority andShellharbour City Council in presenting thethird annual ‘Lakeside Ride’, a bike eventrun from Wollongong's southern suburbsinto the city of Shellharbour.Speed management strategyWe continued to work with the communityto reduce speeding on our local roads,with a 'speed check' trailer visiting schoolsand helping with traffi c control at majorCouncil events and roadwork sites.We also worked with young drivers andin 2005-06 continued our support for theRotary Youth Driver Awareness Scheme.A series of workshops and other eventstargeted the supervisors of learnerdrivers, to help encourage best practicein driving and attempt to stop poor habitsbeing passed to the next drivinggeneration.Drink Safe Walk SafeOur Drink Safe Walk Safe programcontinued to target pedestrians in theWollongong Central Business District withthe aim of decreasing the incidence ofalcohol related pedestrian injury.Successful campaigns were conductedin conjunction with eight hospitality venuesover the Christmas-New Year period.Drink Safe Walk Safe has also become anintegral part of major local events includingselected St George Illawarra Dragonshome games in 2005-06.Safety around schools2005-06 saw the establishment of theWollongong school safety team, withrepresentatives from Council, the Roadsand Traffi c Authority and Department ofEducation and Training (DET). The teammeets monthly and acts as a specialistreference group, clarifying school safetyissues, assisting in the consultationprocess with school communities, andproviding recommendations to the City ofWollongong Traffi c Committee. Since itsestablishment the team has worked with18 schools on separate issues.We also took a proactive role in NationalWalk Safely to School Day, partneringwith Thirroul Primary School in a specialbreakfast event. Council used the dayto encourage local schools to promotewalking as a viable transport option forgetting to and from school.Improving our internal systemsWe developed a functional specifi cationfor a ‘Traffi c Management ImplementationSystem’ for review by Councilmanagement. Once approved, thespecifi cation will form a platform toconstruct a recording and reportingsystem to monitor all traffi c relatedenquiries, signage changes, proposedtraffi c facilities and their relative priority,past recommendations and resolutions ofCouncil.It is proposed the system will be set upusing existing computer software utilitiesalready used throughout Council.Development AssessmentAssessing developmentapplicationsThe city's growth and developmentcontinues at a healthy rate as shown bythe value of development applicationsprocessed in 2005-06. While the numberof applications received is lower than the2004-05 period, this is partly related to thereview and updating of planning controls inthe Wollongong City Centre and a refl ectionof general market trends in the state.During the year we continued to improveour pre-lodgement, notifi cation andassessment procedures to meet customerexpectations. We received 2,138development applications, representinga combined value of $512,158,260, anddetermined 5,296 planning certifi cateapplications.It is pleasing to report that the mediandevelopment assessment processingtime is 35 days. This represents a 10%improvement from the previous year anda 15% improvement when compared to2003-04.Responding tostakeholder needsWe commissioned the Illawarra RegionalInformation Service to conduct a customersatisfaction survey to further improve serviceto our various external stakeholders.The survey was completed in June 2006with fi nal results and recommendations tobe presented to Council in the fi rst quarterof 2006-07.DevelopmentAssessmentOutlookA priority for thecoming year willbe continuedimprovements tocustomer servicethrough ongoingreviews of ourprocesses. We willstage the WollongongArchitectural DesignAwards, and furtherbuild on the wayswe consult thecommunity ondevelopment issues.

Pier Panozzo from DevelopmentAssessment and Compliance onhis way to inspect a building onCrown Street to ensure it meetshigh standards of certification.City Development51

Development assessmentadministrative reviewTo further streamline the lodgement,preliminary assessment and processingof applications, we reviewed theadministration section of our DevelopmentAssessment and Compliance Division. Thereview has led to the creation of specialistfunctional areas with specifi cally selected,highly skilled and appropriately trained staff.The project will continue into 2006-07 toachieve further improvements in processingtimes and quality of applications.Customer servicedocumentation reviewWe are undertaking a continuous reviewof our customer service documents toensure all information is relevant, clear andconcise, to enable customers to betterunderstand the requirements both ofCouncil and planning legislation.All front counter application forms andlodgement check sheets have beenupdated, and the next stage will be areview of all fact sheets and standardletters.Implementation of a fast trackassessment systemCouncil's fast track assessment system,implemented in May 2005, deliveredimprovements to the processing of routineapplications such as single residentialdwellings, demolition, complyingdevelopment, applications not requiringnotifi cation and construction certifi cates.Since implementation of the system 490applications have been approved with anaverage determination time of 4.5 days,compared with the key performanceindicator determination time of seven days.This represents approximately 17% ofapplications received by the DevelopmentAssessment and Compliance Division inthe same time period.Architectural Design AwardsPlanning commenced for the WollongongArchitectural Design Awards, scheduledto be held in late 2006 to showcaseinnovative architectural and energyeffi cient development projects in the cityacross a range of development categories.The awards will enable propertydevelopers and/or their consultants tonominate projects, with winners to bedetermined by an expert panel with skillsin architecture, planning, urban designand/or landscape architecture.Review of informal planningconferencesAs part of a review of all methodsof engagement with the community,we looked at the way we consult thecommunity on planning and developmentissues, including informal planningconferences. An initial report waspresented to Council in May 2006, withfurther recommendations to be consideredin the latter part of the year.Once adopted, the communityengagement strategy will provide a rangeof options for people to have their sayon development applications and otherplanning proposals.Indigenous planning positionWe advertised the position of AboriginalLiaison Offi cer in early 2006 to assistwith planning matters. No applicationswere received, and a revised recruitmentstrategy for the position is beingdeveloped.BuildingComplianceOutlookWe will conductbuilding inspectionsto best practicestandards, ensuringdevelopment complieswith environmental,planning and buildingrequirements. We willalso strive to maintainresponsivenessto assessmentneeds and maintaincompetitivenessagainst privatecertifi ers in the localmarketplace.Value of developmentapplications receivedNumber of developmentapplications receivedMedian processing time fordevelopment applicationsPlanning certificatesreceivedTotal lots created bysubdivisionConstruction certificatesreceivedCity Development521.0 $Billion0.80.60.40.20.10.440.460.830.9801-0202-0303-0404-050.5105-06While fi gures refl ect a downturnin housing approvals, mediumdensity building approvals haveincreased by 37.6% resultingin an overall increase in totaldevelopments.2,8002,6002,4002,2002,0002,3282,2482,8102,64401-0202-0303-0404-052,13805-061,800We continue to receive ahigh volume of developmentapplications with a drop fromlast year due to the economicdownturn in the building industry.50 Days45403530254546413901-0202-0303-0404-053505-06We have again succeeded inreducing the time taken toprocess development applicationsand exceeded benchmarkstandards.6,5006,0005,5005,0004,5004,0006,1005,9365,73401-0202-0303-0404-055,0955,29605-06The number of planningcertifi cates has increasedfrom last year refl ectingproperty confi dence in the localgovernment area.500400300200100053340050147501-0202-0303-0404-0521605-06The number of lots created hasdropped considerably from lastyear, refl ecting a downturn inthe market and a reduction inthe amount of land available fordevelopment.2,5002,0001,5001,00050001,8461,6561,91301-0202-0303-0404-0587974905-06A reduction in constructioncertifi cates from last year refl ectsa statewide downturn in theproperty market.

Building ComplianceImproved building complianceBuilding compliance impacts on thewhole community. We continue to reviewthe process of inspection to ensure highstandards of certifi cation within the citywhere Council is the Principal CertifyingAuthority. In 2005-06, 3,001 buildinginspections were performed, with 423requiring reinspection. Of the 49 Noticesof Intent issued, only three required legalaction.During the year a total of 324 complaintswere received, 29 relating to the actionof private certifi ers. In all, 35 complaintsrequired enforcement actions to beinitiated.Fire safety compliance levelsFire safety is vital for everyone wholives, works in or visits buildings in theWollongong Local Government Area.This year we have focused our fi re safetyprogram on places of public entertainmentto ensure necessary approvals and fi resafety measures are maintained.Ongoing emphasis is being placed onthe fi re safety of buildings and requiringowners to maintain and certify essentialfi re safety measures annually.Competitiveness withprivate certifiersUnder the Environmental Planning andAssessment Act 1979, accreditedcertifi ers (private certifi ers) can act asprincipal certifying authorities and carryout certain functions of local governmentauthorities. These include the issuingof complying development consents,compliance certifi cates, and constructioncertifi cates.Our building team provides responsiveassessment and inspection of buildingconstruction matters, including compliancein situations where we are the PrincipalCertifying Authority (PCA). Our target isto maintain the number of PCA projectsundertaken by Council. This variedthroughout 2005-06 and averaged 54%for applications where we were appointedthe PCA. Improvement processes willfocus on the establishment of a fast trackassessment team to provide a competitivequality focused building approval andinspection unit within Council to competewith private certifying authorities.Subdivision OutlookDuring 2006-07 wewill continue theeffi cient handling ofapplications to ensurewe achieve minimumturnaround times tomeet the needs of ourstakeholders.SubdivisionDetermining subdivisionapplicationsThe subdivision function involves thedetermination of applications relating to thesubdivision process and the monitoring ofconstruction works to ensure they complywith approvals and meet best practice.As applicants require sign off by Councilbefore their fi nal plan of subdivision canbe registered with the Land Titles Offi ce,it is important applications are handledeffi ciently. In 2005-06 we determined95% of all applications within fi ve workingdays when all conditions of developmentconsent were satisfi ed. This fi gure isconsistent with the previous three years.Sixty two construction certifi cates wereissued during the year, and we carried out188 subdivision inspections in our role ofPrincipal Certifying Authority. A total of 216lots were created, which is a refl ection ofthe downturn in the property market.Soil and watermanagement policyAs part of our commitment to theprotection of the environment, wehave included the document Soilsand Construction: Managing UrbanStormwater - Volume 1, 4th Edition, March2004 by Landcom, in the Wollongong CityCouncil Subdivision Code. The documentdetails best practice in the management ofsoil loss and stormwater pollution.Consent conditions reviewDuring the year we revised the consentconditions relating to subdivision toensure new subdivisions are designed,constructed and operated in accordancewith current industry standards.Skye Wilson assists a resident with theirextension plans at the Development Assessmentand Compliance customer service counter.City Development53

PROGRAM GOAL: Provide well constructed, maintainedand functional roads, drains, public buildings andassociated engineering structures.Andrew Piper and Rob Chittickconstruct a new access roadat Wollongong’s QuilkeyPlace as part of city foreshoreimprovement works.

Civil InfrastructurePlanning and ProgrammingManaging our civilinfrastructure assetsAs part of our ongoing efforts to manageCouncil's civil infrastructure assets weplaced particular emphasis in 2005-06 on:• compiling and improving inventoriesof assets such as roads, bridges,footpaths and signs;• measuring and recording the conditionof assets; and• reviewing the information collectedabout various types of civil infrastructureassets to determine priorities for capitaland maintenance expenditure.Achievements during the year included:• Completion of the inventory andcondition assessment of approximately26,000 regulatory street signs.• Updated condition assessments ofCBD footpaths and all cycleways in theWollongong Local Government Area.• Collection of video images of Council'sroad network, including panoramicviews of the road reserve, to enableidentifi cation of all assets.• Updated inventory and conditionassessment of the surface of all roads inthe local government area.• Completion of a pilot project to collectelectronic data about Council's urbanstormwater drainage network. Theproject involved compiling an inventory,condition assessment and map of6% of the urban stormwater drainagenetworks in the local government area.• Complete inventory and conditionassessment of all traffi c roundabouts onour local roads network.Civil InfrastructurePlanning andProgrammingOutlookOur works programs willcontinue to be directedto areas of greatestneed and maximumbenefi t, using refi nedsystems for determiningpriorities. Our planningwill benefi t from datacollected on ourstormwater drainagenetwork, and videoimages of our roads.Works program expenditureThroughout 2005-06 we refi ned the waywe assess and determine priorities forboth capital and maintenance works ona range of civil infrastructure assets. Weconsider a range of issues for each projectproposal, including risk to the community,impact on the environment, condition andusage of the asset, future maintenancecosts, and the effect on the communityand potential damage to property if theproject does not proceed.During the year we used this assessmentmethod to review all proposed projectson Council's rolling works program forcivil assets, to ensure our works programexpenditure is directed to the assets andprojects that provide maximum benefi t.Condition assessments for civil infrastructure asset classesAsset typeRoad pavementKerb and gutterFootpathsCyclewaysRoad reservesignagePlanned activities tomeasure conditionTo update the inventory andcomplete condition assessmenton 100% of road network surface.To update the inventory andcomplete condition assessmenton 100% of kerb and gutter.Review condition assessment ofall footpaths in CBD.Review inventory and conditionassessment on 100% of cycleways.Complete the inventory andcondition assessment of 100%on Council’s regulatory signs.Actual activities tomeasure condition100% complete using video imagetechnology.Nil complete. Will occur in2006/07 using video imageinventory completed in 2005/06.100% complete using electronicdata capture in the fi eld.100% complete using electronicdata collection in the fi eld.100% complete using electronicdata collection in the fi eld, GPSsurvey and electronic mapping ofall assets.Performance Against ObjectivesInfrastructureExpenditure $55.70mInfrastructureIncome $9.29mTechnicalSupport$0.38mCivil InfrastructureManagement$19.22mTechnicalSupportNILCivil InfrastructureManagementNILOperationalServices$8.60mEmergencyServices$3.35mBuildings$8.11mFloodplainManagement$0.14mConstruction andMaintenance$10.97mOperationalServices$0.74mBuildings$0.25mFloodplainManagement$2.25mConstruction andMaintenance$5.28mEmergencyServices$0.39mDesign$4.93mInfrastructure expenditurevs. total Council expenditureTotal Infrastructure expenditure was $55.70m or34.21% of total Council expenditure ($162.82m).Design$0.39mInfrastructure incomevs. total Council incomeTotal Infrastructure income was $9.29mor 5.89% of total Council income ($157.74m).Infrastructure55

Infrastructure56Construction andMaintenanceMinimise liabilityin high risk areasAs part of our overall risk managementstrategy, we collect relevant data onincidents and value of claims madeagainst Council that directly relate tocivil infrastructure assets. Using thisinformation, we can direct our resourcesto areas with the greatest need tominimise public liability costs.In 2005-06, 103 incidents were reportedcompared to 129 in 2004-05. Theseincidents resulted in 70 claims and acost to Council of $195,849, comparedto $127,831 in the previous year. Datacollected over the last six years showsfootpaths incur the majority of publicliability claims, and we continue to focusour attention and resources on footpathmaintenance and replacement programs.Functionality ofinfrastructure assetsIn managing $1.5 billion worth of civilinfrastructure assets throughout thecity, our priority is on improving theirfunctionality. We achieve this throughupgrading existing assets or constructingnew facilities. In the case of kerb andgutter construction, the inclusion of kerbramps improves the functionality of theadjacent footpaths.Road constructionMajor road reconstruction projects in2005-06 included Stratford Avenue,Unanderra; South Avondale Road,Avondale; Darcy Street, Port Kembla;Crawford Avenue, Gwynneville; WilliamsonStreet, Tarrawanna; Domville Road, Otford;Gipps Street, North Wollongong; GeorgeHanley Drive, North Wollongong and TheAvenue, Figtree.We also improved traffi c managementthrough constructing three newroundabouts on Bong Bong Road, WestDapto; installing traffi c lights at BongBong Road and Homestead Drive, WestDapto; constructing a turning lane andnew bus bay on the Princes Highway andAvondale Road, Dapto; and realigning theintersection at George Hanley Drive andVirginia Street, North Wollongong.During the year we also completedthe city's largest local road resurfacingprogram in more than 20 years with theresurfacing of 35 kilometres of road.Major resurfacing projects included MtKeira Road, Mt Keira; University Avenue,Gwynneville; Burelli Street, Wollongong;Waldron Street, Mt St Thomas; ShoneAvenue, Horsley; West Dapto Road, WestDapto; and Flagstaff Road, Warrawong.Kerb and pram rampsWe constructed or rebuilt 88 kerb rampsthroughout the local government areaand continued our program of pram rampinstallation. Pram ramps at intersectionsand pedestrian crossings provide a vitallink for many groups in the community,including mothers with young children,older people, and people with a disability.Yellow surface or tactile markers are usedto better highlight these facilities for peoplewith visual impairment.FootpathsWe continued a program of footpathimprovements with major workscompleted at Blackrock Cutting onthe Princes Highway, Corrimal; BurelliStreet between Globe Lane and KeiraStreets, Wollongong; Urunga Street,West Wollongong, Endeavour Drive,Wollongong; and Wentworth and Darcystreets, Port Kembla. These projectsresulted in a total of 6,100m 2 of newfootpath construction.14013012011010090Construction andMaintenance OutlookOur challenges for thecoming year includeimproved functionalityof the road networkthrough the maintenanceand construction oftraffi c managementworks, and a quest forincreased funding fromgovernment and privateagencies for both arterialand local roads.Number of incidentsreported13214213512901-0202-0303-0404-0510305-06Council continues to focusattention on footpath maintenanceand replacement as research datahas shown footpaths incur themajority of public liability claims.Value of claims settled600 ($'000)500400300200586.86693.14681.5001-0202-0303-0404-05127.83195.8505-06100In 2004-05 changes to legislationdramatically reduced the valueof claims settled. 2005-06 hasseen the value of claims settledincreasing.We also carried out repairs to 1,355m 2of footpath. The area of work completedcompares to an estimated 12,884m 2 offootpath which had been identifi ed asrequiring maintenance.Car parksWhile not as high a priority as roads andfootpaths, unsealed car parks continued toreceive attention with 1,075m 2 of car parksealed during 2005-06. The main projectthis year was at Ocean Park, Woonona.Responding to community requestsOur system of 'action requests' enables usto record and track community requeststo perform a wide range of tasks. We aimto respond to every request received,with responses ranging from providinginformation to the completion of a taskas unscheduled maintenance. During theyear, 69% of action requests logged werecompleted within the target timeframes,which vary depending on the urgency ofthe task and factors such as immediaterisk to public safety.Shared pathway constructionWe further demonstrated our commitmentto maintaining and extending the sharedpathway network by constructing 4,484metres of new shared pathway during2005-06. Major projects included Cliftonto Sea Cliff Bridge, City Beach foreshore,Stages 1 and 2 of Horsley, and rebuildingsections of shared pathway at TowradgiPark and the Lake Illawarra foreshore,Berkeley.Kerb and gutterRoadside drainage was upgraded withthe construction of new kerb and gutter atAvondale Road, Dapto; Williamson Street,Tarrawanna; Harry Graham Drive, Mt Keira;Gipps Street, and George Hanley Drive,North Wollongong; Domville Road, Otfordand Princes Highway, Corrimal. Theseprojects resulted in a total of 2,950 metresof new kerb and gutter construction.6543Footpath constructed7 m 2 ('000)3.813.916.347.8101-0202-0303-0404-056.1005-062The number of new footpathsconstructed decreased in order toincrease maintenance on existingpathways.Value of actual expenditurevs required expenditure- road15 $Million1296314.603.590Required14.602.4014.604.0714.606.0614.608.9801-0202-0303-0404-0505-06ActualIn 2005-06 Council increasedroad funding in an effort to reducethe defi cit between actual andrequired funding.

Safe work environmentIn line with our organisational occupationalhealth and safety (OH&S) strategy, wecontinued to develop, implement andreview site safety management plansand safe work method statements forconstruction and maintenance activities.Site inspections are the primary methodused to review site safety activities.Inspections are scheduled on a regularbasis to maintain a continuous awarenessof OH&S and ensure the required safetymanagement systems are in place andoperating correctly. The inspectionsinvolve discussion with Council staff andany contractors to provide feedback onOH&S issues, so we can immediatelyaddress any urgent issues. Longer termsafety issues can be recorded and trackedthrough the corrective action system.The major OH&S initiative during 2005-06was the implementation of the 'Get Smart'program which introduced an improvedCouncil wide safety management system.To highlight the importance of the 'GetSmart' program, members of Council'sexecutive team visited works depots todiscuss relevant issues.Technical SupportGeotechnical adviceAs we increase spending on maintainingand replacing our ageing civil and buildingassets, we also face an increasing needfor investigations requiring geotechnicalreports. This is compounded by risingindustry standards which now requiregeotechnical assessments to supportalmost all structural designs.As a result, the number of geotechnicalreports increased from 62 in 2004-05to 69 in 2005-06. Despite this increase,there was an improvement in the averagenumber of days to report, down from 21to 17, and in the number of reportscompleted within the target timeframeof 21 days, up from 65% to 75%.However, the 2005-06 fi gures wereadversely affected by the limitedgeotechnical resources available toCouncil, both internally and externally.Because of an industry wide skills shortage,investigations and routine testing sentto external consultancies are subject toincreasing costs and reporting delays. Twoprojects were aborted due to the inability toobtain quotes from external consultants toundertake the investigations.Geotechnical reviewof development applicationsAs more marginal land becomes attractiveto developers, the number of geotechnicalissues relating to development applicationscontinues to increase. Referrals for ageotechnical review of developmentapplications increased from 323 in2004-05 to 392 in 2005-06, an 18%increase which now represents 45% ofthe workload of Council's GeotechnicalEngineer. The percentage of reviewscompleted within the target timeframe of14 days dropped from 66% to 39% overthe corresponding period. These fi gureswere adversely affected by a lack ofrelief staff during absences and theincreasing complexity in the assessmentof marginal land.Advice on road pavementstructural conditionThe demand for pavement investigationsis increasing signifi cantly in proportionwith our increasing expenditure onroad pavement maintenance andreconstruction. Currently, seven-eighthsof the road pavement network exceeds itsdesign life, however 76% of the networkis performing within design parameters.This refl ects the success of diversifi edpavement construction and surfacingprograms developed with in-housegeotechnical input over the last 40 years.However, higher priority works havelimited our capacity for pavement testingTechnical SupportOutlookOur geotechnical areacontinues to faceincreasing challengesas we work to meetdemand for assessmentof developmentapplications on marginalland, review projectsrelated to Council’sageing infrastructure, anddeal with an industrywideskill shortage.to 27% of the amount required in 2005-06to maintain the quality of our pavementdata. Until now, the need for pavementinvestigations and surfacing designshas been met using historical data and'just-in-time' reporting. This has beenhighly successful but is not sustainableas structural data for 17% of the roadnetwork will become obsolete within thenext fi ve years and requires validationthrough new testing.Geotechnical auditon engineering materialsWe continued to carry out regular auditassessments on the main engineeringmaterials supplied to Council works, suchas road base, concrete and asphalt, inaccordance with the established protocol.Other materials can also be assessedas required, and our geotechnical teamregularly advises operational staff aboutthe use of engineering materials andconstruction methods.Number of geotechnicalreportsNumber of days pergeotechnical reportGeotechnical reportscompleted within the targettimeframe of 21 daysNumber of geotechnicaldevelopment applicationsreviewsAverage number of days pergeotechnical reviewPercentage of reviewscompleted within the targettimeframe of 14 days706050626922201821.419.319.920.7100 %80606873657535030025032932339225201527.725.0100 %8060728166Infrastructure5840302040414101-0202-0303-0404-0505-06Despite the apparentimprovement, these results wereadversely affected by a skillsshortage in the geotechnicalindustry and the correspondingresource limitations both internaland external to Council.16141201-0202-0303-0404-0517.005-06These results were adverselyaffected by a skills shortage inthe geotechnical industry and thecorresponding resource limitationsboth internal and external toCouncil.40205301-0202-0303-0404-0505-060Despite the apparentimprovement, these results wereadversely affected by a skillsshortage in the geotechnicalindustry and the correspondingresource limitations both internaland external to Council.20015010018620201-0202-0303-0404-0505-06Geotechnical issues withdevelopment increases asmarginal land becomes attractiveto development. Consequentlythe number of referrals forgeotechnical review increased by18% this year.10508.38.412.701-0202-0303-0404-0505-06This year’s fi gures refl ect the lackof relief staff and the increasingcomplexity in the assessment ofmarginal land.402004701-0202-0303-0404-053905-06This year’s fi gures refl ect the lackof relief staff and the increasingcomplexity in the assessment ofmarginal land.

As we increase spendingon maintaining andreplacing our ageing civiland building assets, wealso face an increasingneed for investigationsrequiring geotechnicalreports.Geotechnician Todd Huuskescarries out a material audit atCouncil’s laboratory.Infrastructure59

Infrastructure60Research activitiesDuring 2005-06 we provided ongoingsupport to the University of Wollongongin its landslide research program, as anindustry partner with other agencies. Thefuture outcomes of the research will helpus to better plan for the developmentof marginal hillside land and emergencyresponse to landslides which are commonalong the escarpment.BuildingsScheduled building worksThe value of scheduled buildingmaintenance work for 2005-06 was$2,324,038 compared to $1,138,262for 2004-05. This expenditure was splitbetween maintenance projects and minorscheduled maintenance tasks.Construction projectsThere was one major constructionproject during 2005-06, the CoalcliffSurf Lifesaving Club boatshed,valued at $290,000. Modifi cations orextensions were carried out on Bellambineighbourhood centre ($80,000).Hollymount Park AFL amenities building($450,000), and Coledale Junior SoccerClub amenities building ($170,000).Two minor construction projects werea pergola in Gallipoli Street, Port Kembla,valued at $60,000, and a rotunda at theWollongong Botanic Garden, costing$40,000.Buildings OutlookOur priorities for thecoming year includean audit and conditionassessment ofpublic toilet facilitiesthroughout the city,and continuation of ourregular maintenanceprogram. Ensuringolder buildings meetstatutory requirementswill continue to bea challenge, andwe will take part inimplementation of a newasset managementcomputer system.Statutory complianceon Council owned buildingsWe face increasing challenges incomplexity and cost to keep all Councilbuildings up to statutory buildingstandards. In 2005-06 we spent $1.35million on statutory compliance upgradesand ongoing equipment servicing. Wecompleted 1,022 statutory compliancetasks, with requirements varying greatlydepending on the type and use of eachbuilding. Our regular reviews continueto highlight the need for ongoing andsignifi cant improvements to Councilbuildings to ensure they meet statutorycompliance obligations, with someareas still not meeting all requirements.Instances of non-compliance generallyrelate to buildings constructed many yearsbefore the requirements were included indesign standards or became legislation.Where that occurs, our approach is toupgrade to meet new design standardsand/or legislation as budget constraintsand opportunity allows.Major areas of spending on statutorycompliance were:• Electrical compliance upgrades -Corrimal Tourist Park.• Electrical appliances - testing andtagging.• Air conditioning and cooling towers.• Exit and emergency lighting.• Fire protection equipment (extinguishers/hose reels).• Fire detection and smoke exhaustupgrades - Council administrationbuilding and Illawarra Performing ArtsCentre.• Backfl ow prevention and watertemperature control valves.Road pavement segmentswith test data indicatingsound condition100 %80604020737374747601-0202-0303-0404-0505-060The marginal increase inpercentage of pavements in soundcondition refl ects the effectivenessof the geotechnical advice overthe last 40 years.Pavement segments withcurrent test data100 %8060402008591929001-0202-0303-0404-058405-06While demand for road pavementgeotechnical reports is increasingin proportion with the increasingroad infrastructure budget,geotechnical reports and reviewstake priority, which leaves littlecapacity for pavement testingand results.Unscheduled buildingmaintenanceWe carried out 3,889 unscheduledmaintenance jobs on Council buildings,to the value of $1,142,927, compared to$900,241 in 2004-05. Minor unscheduledbuilding tasks were completed across our633 buildings and structures involving awide range of trades and tasks, rangingfrom changing light globes to replacingwindows.Asset managementOur Works and Services team operatesa computer based asset managementsystem to record and track maintenancespending on buildings, and keep aninventory of our various buildings and theirfeatures and inclusions. It is anticipatedthe existing asset managementinformation will be transferred into newCouncil wide asset management softwarewhich is scheduled for implementationduring 2006-07.Scheduled vs unscheduledbuilding maintenance70 %60504030Operational SupportOutlookWe will continue tomaximise the use of ourplant and equipmentand work to furtherimprove the effi ciencyof our materialsmanagement.3862415949524456336701-0202-0303-0404-0505-0620Unscheduled ScheduledConsiderable improvement wasmade this year in increasingexpenditure on scheduledmaintenance projects to reduceunscheduled breakdowns over thelong term.Value of scheduled vsunscheduled buildingmaintenance2.5 $Million2.01.51.00.50.71.20.81.10Unscheduled0.90.80.91.11.1The total building maintenanceexpenditure in 2005-06 refl ectsan increased budget allocationof $500,000, plus additionalstatutory compliance budgetallocations.2.301-0202-0303-0404-0505-06Scheduled

Operational SupportUsage of Council plantOur fl eet of vehicles, trucks, plant andequipment is continuously monitoredfor suitability in terms of type, capacity,numbers and technology to ensure wedon't own or lease plant and equipmentthat we do not need. Usage fi gures arerelated to capital or lease costs andcompared to the alternative of hiring thatsame piece of plant on a needs basis, todetermine whether we should continueto own or lease that item of plant into thefuture.We also monitor our fl eet of plant andequipment to ensure it meets the changingneeds of Council's various divisions. Whendemand for an item of plant or equipmentdrops below an economic level, we assesswhether it should be replaced when due,or an alternative option implemented.Approximately 75% of all operationaldemand for plant and equipment issatisfi ed from our existing fl eet, with theremainder sourced from various plant hireproviders.Materials managementWe continued to focus on the value ofmaterials purchased and held in store forissue to Council staff on a needs basis.After achieving a reduction in our storesinventory from approximately $250,000 in2000 to $110,000 in 2004, our emphasisthis year shifted to identifying minimumlevels of material required to maintainoperational effi ciencies. As a result, therehas been no further reduction in the valueof the stores inventory during 2005-06.We also began a complete review ofall stores activities with a view to furthereffi ciencies. One outcome of the reviewso far has been the establishment of aworking party which has developed astrategy and action plan to determineand identify potential improvements andquantity savings.Key projects 2005-06Fairy Meadow Surf Life Saving ClubWestern Suburbs Pool, UnanderraCobblers Hill ChildCare Centre, FigtreeCringila Multi-Purpose CentreKoonawarra Community CentreMarket Street, Wollongong car parkStuart Park, North WollongongWebb Park, KoonawarraWollongong Senior Citizens CentreBeaton Park Pool BuildingRailway Parade, WollongongJohn Anderson and Warren Browninspect the newly refurbished facilitiesblock at Hollymount Park, Woonona.Windows and security screen replacedElectrical rewiringToilets and laundry refurbishedInternal refurbishmentMinor extensions and refurbishmentLift upgrade and repairsDwelling re-roofed and paintedSoccer club amenities refurbishedRe-roofedAir conditioning refurbishment and associatedworksDemolition of toilet blockStock turnover percentageStock at year end100 %80899389140 (‘000)1208283141.90152.92604010080109.88110.77108.912060001-0202-0303-0404-0505-06This year’s percentage is a goodresult as the benchmark in storesfacilities is to match to stockinventory holdings as a turnovereach month.4001-0202-0303-0404-0505-06The increase in inventory isintentional as part of the centralstore improvement process toincrease the holdings of fastmoving stock to prevent delays inserving customers.Infrastructure61

Emergency ServicesAnnual fuel managementprogramTo help maintain bushfi re asset protectionzones in the city, fuel managementactivities, such as prescribed burnsand mechanical clearing works, wereconducted by the Rural Fire Service (RFS)in conjunction with Council and privateland owners. The RFS conducted fi veprogrammed hazard reduction activities,treating approximately 29 hectares ofland in the Helensburgh, Austinmer andBulli Tops areas involving around 1,380personnel hours. Further prescribed burnshave been programmed this season forareas around housing at Helensburgh,subject to favourable weather conditions.These activities met the Priority Onetarget, which was to address hazardsidentifi ed by the community and the fi reservices to strengthen asset protectionzones on the urban and bushlandinterface.Plans are also in place for additionalprescribed burns to reduce hazards inapproximately 36 hectares of land inthe Otford, Austinmer, Bulli Tops and MtKembla areas. These works will achievethe Priority Two target of providing amosaic of fuel-reduced areas to helpcontribute to fi re management in the eventof wildfi res.During this reporting period, no majorhazards were presented to the communityfrom bushfi res, however, there was amajor fi re on New Year's Day 2005 inthe adjoining Wollondilly Shire. Thisfi re had the potential to impact on theWollongong Local Government Area dueto extreme prevailing weather conditions.Signifi cant resources from Wollongongwere deployed and were successful incontaining the blaze.EmergencyServices OutlookWe will continue towork with residents inareas of high bushfi rerisk with educationand informationprograms, andmaintain our ongoingfuel managementprogram throughoutthe city.Community educationDuring the year, NSW Rural Fire Servicestaff and volunteers organised andattended a range of community awarenessprograms. The RFS has specifi callydeveloped education packages designedfor presentation to various groups withinthe community, particularly those whomay be more prone to being affectedby bushfi res. All community requestsfor attendance were met and the RFScontinued to recruit community safetyfacilitators to enhance future projects.A state open day was held on 8 October2005, when all RFS stations opened theirdoors to the public. Volunteers and staffprovided fi re safety advice and informationto residents and visitors, includinginformation on how to prevent, prepare forand survive bushfi res.Fireguard for kidsThe 'Fireguard for Kids' programcontinued to be promoted to 72preschools, primary schools andcommunity groups in the region. Theprogram involves educators from the RFSproviding fi re safety information to childrenand the wider community. The service alsoparticipated in Council's school holidayprogram during the January holidays.Street meetingsVolunteers and community safetyfacilitators conducted street meetings onfi re awareness and protection in strategicurban/bushland interface areas andproposed hazard reduction burns. Theaim of the meetings is to provide residentswith area-specifi c information on how theycan help reduce the risk of bushfi res andhow they can keep bushfi re hazards to aminimum, for example, by reducing theamount of fl ammable materials aroundtheir house, cleaning leaves, bark andtwigs out of gutters and roofs, mowinglawns and maintaining gardens, storingwoodpiles away from the house, andsealing cracks and gaps in the eaves,walls, window frames and doors to reducethe chance of embers entering the houseas a fi re approaches.Blue hydrant marker programVolunteer brigade members continuedthe 'blue hydrant marker' program inthe Stanwell Park and Mt Kembla areas.Blue cats' eyes are installed on roadwaysthroughout the city in the urban/bushlandinterface areas to help crews easily locatefi re hydrants during times of fi re andemergencies. This can reduce potentialdelays in getting water to a fi re, minimisingthe risk to life and property.Hectares burnt for hazardreductionCommunity awarenessprogramsBurning hours for hazardreduction1501201477060742,5002,0002,8122,59590501,50060306058202940304538461,0005005801,2001,380Infrastructure6201-0202-0303-0404-0505-060As the number of prescribedburns has decreased, the areaburnt has shown a correspondingdecrease.2002-0303-0404-0505-06The Rural Fire Service andCouncil are working together toimprove provision of fi re safetyand community responsibilityawareness training to a variety ofcommunity groups, schools andservice clubs.01-0202-0303-0404-0505-060Hazard reduction by prescribedburning has been reducedin favour of mechanical andmanual means. The RFS providesinformation and authorisation forland owners and land managersto carry out these works.

Rural Fire Service members carry out a hazardreduction activity at Austinmer to strengthenhazard protection zones.During the year, NSW Rural FireService staff and volunteers organisedand attended a range of communityawareness programs.Infrastructure63

InfrastructureDesignInfrastructure projectsOur Design Division investigates anddesigns a range of infrastructure projectsthroughout the city. During the year wecompleted the design of 64 infrastructureprojects with a total estimated value of$10,914,100. In addition, a further 175minor designs and investigations werecompleted for other Council divisions.MacCabe Park master planA project to develop a master plan for theprecinct around Wollongong's MacCabePark was deferred pending fi nalisation ofthe city centre revitalisation strategy andthe associated public domain master plan,which incorporates aspects of MacCabePark and surrounding development sites.Wollongong foreshore projectDuring 2005-06 we developed a masterplan for the foreshore area from PuckeysEstate in the north to Bank Street inthe south. The master plan, developedthrough extensive community consultation,included a draft background publication.There was then a signifi cant change in theapproach required for the development ofthis project, with the foreshore plan beingincluded in the reassessment of the citycentre revitalisation strategy currently underfi nalisation with the state government.Design OutlookIncreased spending oninfrastructure continuesto place signifi cantdemand on resourcesto produce designplans. At the sametime we will continueour focus on specifi cmajor projects includingMacCabe Park, theWollongong foreshore,and the Integral EnergyRegional Park.Whytes Gully wastetransfer stationA master plan for the future developmentof the Whytes Gully Waste DisposalDepot was completed and adopted atthe end of June 2005. The plan allowsfor a new access road, gatehouse anddual weighbridges, waste transfer station,revolve centre and green waste processingareas. The access road was designedand constructed in 2005-06, with adevelopment application for the gatehouseand weighbridge approved in May 2006.Final design documentation was nearingcompletion in June 2006, to be followedby a tendering process for construction.Coledale Beach sea walland dunal restorationThe Coledale beach sea wall protectsbeach facilities such as the picnic andcamping area and road and parkingfacilities. Over the years the exposedsection of this sea wall has deterioratedand now requires repairs and remedialworks.Investigation revealed the sea wall'sstructure and foundations below the sandlevels were in a sound condition but theexposed section above sand level haddeteriorated badly and was becomingunsafe. This suggested that replacing theexposed sections with similar constructionwas the most practical and cost effectivesolution. Designs and estimates have beencompleted and the project is listed forconstruction in the fi rst quarter of 2006-07.Integral Energy regionalpark master planWe have completed master planning forthe former Integral Energy depot in DarkesRoad, Kembla Grange. The plan providesfor a range of recreational uses includingnew picnic facilities, upgraded toilets, amotoring museum, an indoor shootingrange and club rooms for the KemblaJoggers group. Following completion ofthe documentation for the refurbishment ofthe toilets, we prepared concept designsfor the new picnic shelter and lodged adevelopment application in November2005. Development approval was issuedin February 2006 and constructioncommenced in June 2006.Floodplain ManagementIdentifying flood areaswithin the cityAs part of our ongoing fl oodplainmanagement responsibilities, weare working to identify all land in theWollongong Local Government Area whichwould become inundated during stormevents up to and including a ProbableMaximum Flood. These areas are identifi edby the completion of fl ood studies, andthe fl oodplain is categorised into fl ood riskprecincts.Of the city's eight major catchments,we have completed studies for HewittsCreek, Towradgi Creek and MinnegangCreek, and the study for Allans Creek isin its fi nal stage. Flood risk areas fromthese catchments have been identifi ed,categorised and recorded.Our target is to categorise 40% of thecity from adopted fl oodplain studies. Withthe pending completion of the AllansCreek study, 50% of Wollongong's majorcatchments have been completed.Towradgi CreekWe designed and constructed a debriscontrol structure to prevent blockage ofa culvert under the Northern Distributor,adjacent to the intersection of RailwayStreet and the Northern Distributor atCorrimal, during major storm events. Theproject was jointly funded by the Roadsand Traffi c Authority.FloodplainManagementOutlookBecause of thegeography andrainfall patterns ofour city, fl oodplainmanagement is anongoing focus.We will continueto work towardsfi nalising key plansfor catchmentsincluding Fairy Creek/Cabbage Tree Creek,Mullet Creek andCollins Creek, andimplement a range ofdocumented strategiesin other catchments.64

As part of our ongoingfl oodplain managementresponsibilities, we areworking to identify all landin the Wollongong LocalGovernment Area whichwould become inundatedduring storm events.Kathleen Packer tests out a newpedestrian footbridge linking ColgongCrescent and Augusta Street in EastCorrimal, built as part of a project toreduce flood risk in the northern suburbs.Infrastructure65

Infrastructure66We also carried out design investigationsto improve a culvert under Railway Street,Corrimal, which is under capacity andexposes Railway Street to considerableoverfl ows during extreme rainfall. Conceptdesigns have been prepared for anenlarged culvert system.The Towradgi Creek fl oodplain riskmanagement plan recommended Councilpurchase a number of properties becauseof their location in a high fl ood hazardarea. The sale is on a voluntary basis,and buildings on these properties, oncepurchased by Council, are demolishedand the land is rezoned 'open space'.As a result, we have purchased twoproperties in Pioneer Road, Towradgi.Hewitts CreekThe Hewitts Creek fl oodplain riskmanagement plan identifi ed works tosignifi cantly reduce the potential forculverts under Lachlan Street, Thirroulto block with debris. We developedconcept designs for training walls,channel stabilisation measures and culvertheadwall modifi cations in consultationwith adjacent property owners. Afteragreement was reached, detailed designwas commenced and has reached 95%completion.The Hewitts Creek plan also identifi eda number of properties which wererecommended for purchase by Councilbecause of their location in a high fl oodhazard area. One property on the PrincesHighway at Bulli has been purchased andsubsequently demolished. The land will berezoned to 'open space'.Minnegang CreekThe fl oodplain risk management plan forMinnegang Creek also recommendedCouncil purchase a number of propertiesdue to their location in a high fl ood hazardarea. As a result, we purchased oneproperty in Weringa Avenue, Lake Heights.Approved rating plan and the estimated additionalrevenue expected to be raisedYearTotal general income andminimum rate variation2004-05 5% $1.66m*2005-06 5% $3.38m*2006-07 5% $5.14m2007-08 4% $6.93m2008-09 4% $8.84mCollins Creek floodplain studyThe Collins Creek fl oodplain study, whichincorporates the catchments of Collins,Whartons, Farrahars, Bellambi Gully andBellambi Lake will consist of three parts:a fl ood study followed by a fl oodplain riskmanagement study, and fi nally a fl oodplainrisk management plan.We prepared a technical brief coveringthe requirements of the study, andtenders were sought from selectedconsulting fi rms. It is anticipated thesuccessful fi rm will be selected early inthe next fi nancial year.All drainage structures within thecatchment have been surveyed andairborne laser scanning has been usedto develop the representation of groundsurfaces.Fairy Creek/Cabbage Tree Creekfloodplain management studyThe fl oodplain management study forFairy Creek/Cabbage Tree Creek includesthe catchments of Cabbage Tree Creek,Fairy Creek and the Towradgi Arm. Thepurpose of the study is to defi ne existingfl ood behaviour, fl oodplain managementobjectives, options and strategiesand update the existing fl oodplain riskmanagement strategies to refl ect currentlegislation and best practice fl oodplainmanagement.We have documented the defi nitionof fl ood behaviour and extents overthe catchments under various fl oodingscenarios, and have also captured theelevation of fl oor levels of propertieslocated within the estimated fl oodextents. This information will now feedinto the calculations of estimated fl ooddamages and assessment of appropriatefl ood mitigation measures.Estimated additionalgeneral income* Based on actual Ministerial increases to General Revenue of 3.5% in 2004-05 and 2005-06. The actualadditional General Revenue raised through the rate increase has been approximately $1.24m and $2.53mrespectively.Cabbage Tree Creekvoluntary purchaseA voluntary purchase scheme is in placewhich covers residential properties inAnama Street, Fairy Meadow. The schemehas been in place for a number of yearsand several properties have alreadybeen purchased. Properties in this streetexperience hazardous fl ooding conditionsduring extreme rainfall events. During theyear Council purchased a unit in one ofthe developments in Anama Street.Mullet Creek/Brooks Creekfloodplain management studyThis study includes the catchments ofMullet Creek and Brooks Creek, andits purpose is to defi ne existing fl oodbehaviour, fl oodplain managementobjectives, options and strategies. Thedevelopment of a community acceptedfl oodplain risk management study andplan is a key supporting document for theproposed development of West Dapto.Progress has been made and thedefi nition of fl ood behaviour and extentsover the catchments under variousfl ooding scenarios has been documented.A considerable amount of time and efforthas been spent refi ning the hydrologicand hydraulic computer models includingdetailed boundary conditions from theLake Illawarra fl ood study. We havecaptured the elevation of fl oor levels ofproperties located within the estimatedfl ood extents, and this information will feedinto the calculations of estimated fl ooddamages and assessment of appropriatefl ood mitigation measures.Mullet Creek voluntary purchaseA voluntary purchase scheme is in placewhich covers residential properties inBurringbar Street, Dapto. The schemehas been in place for a number of yearsand a majority of the properties havealready been purchased. Properties inthis street experience hazardous fl oodingconditions during extreme rainfall events.Unfortunately, no interest has been shownthis year from the remaining propertyowners in Burringbar Street to sell theirproperties to Council.Lake Illawarra entranceCouncil has contributed $1 million to amajor project to redesign the entranceto Lake Illawarra so that it remains openthe majority of the time. The proposedworks will include the construction of anorthern training wall and extension of thesouthern spur wall as well as the dredgingof 200,000 cubic metres of sand from theentrance channel.The proposed works are estimated tocost $4 million, with the Lake IllawarraAuthority contributing $2 million andShellharbour City Council matching

Wollongong's $1 million contribution. Theproject has been approved to proceedand works will soon be commencing.The Lake Illawarra Authority isresponsible for coordinating the project,and a technical working party has beenestablished with representatives fromthe authority and Wollongong andShellharbour city councils.Local government requirementworks carried out on privateproperty - under section 67• No. 2 Bellambi Street, Tarrawanna- Stormwater overfl ow channel.Construction cost to council was$64,882.• Lot 21, DP 838638 (enter off JustineAvenue, Tarrawanna) - Flood mitigationworks. Construction cost to Council was$139,400.An additional $50,000 was spent on thedesign phase of the projects.Special rate variationThe 2004-08 Corporate Plan introduceda landmark program to redress the criticalshortfall in infrastructure asset funding forWollongong City Council. The fi ve yearprogram provided an additional $250K perannum for recreation assets, $500K perannum for buildings, and an additional$2 million per annum for civil infrastructureconstruction and maintenance starting in2004/05. The increases are cumulative forthe following 4 years which means that,for example, there was an additional $4million to expend on civil infrastructure in2005/06, $6 million in 2006/07 and so ontill 2008/09. Details of where the additionalfunding was expended during 2005/06 areoutlined in the attached table.To assist in funding this commitmentto the future viability of communityassets and safety, we sought and weresuccessful in gaining approval from theMinister for Local Government for a fi veyear rating strategy. The table on previouspage shows the approved rating plan andthe estimated additional revenue expectedto be raised through the plan.The implementation of the rating planwas the fi rst step in a fundamental andnecessary adjustment to the underlyingfi nancial structure of our operations, toensure the city's viability well into the future.It was recognised that the revenueincreases proposed in the fi ve year planwould not by themselves place Council inthe fi nancial position where it needed tobe in the future.There is need for continued effort indriving effi ciency and rationalising services(including assets). In response to thisneed, the fi nancial revision strategy andasset management review programs wereincluded in the 2005-09 corporate plan toprovide a targeted fi nancial position overthe period.The table on pages 68 and 69 provides adetailed listing of the delivery of additionalinfrastructure works provided fromadditional budget allocations and raterevenue.Condition of public works - June 2006 evaluationAsset typeNumberof recordsLength(km)Area (m 2 )Currentreplacement costEstimatedrestorationcostRequiredexpenditureto maintainassets in currentconditionBuildings CBD 5 $117,655,000 $6,505,180 $2,941,375Other 628 $282,353,100 $25,411,779 $7,058,828Roads Surfaced 3,987 1,097 8,861,532 $676,931,550 $132,901,007 $20,307,947Unsurfaced 30 4 16,480 $824,000 $1,236,000 $24,720Car parks Surfaced 201 322,363 $27,446,561 $4,052,832 $823,397Unsurfaced 66 112,615 $8,446,125 $1,600,546 $253,384Kerb and gutter 7,054 1,598 $239,752,500 $40,587,192 $7,192,575Footpath 2,112 333 479,520 $50,349,600 $19,636,344 $1,510,488Cycleways 155 68 172,115 $17,211,500 $878,042 $516,345Guard rails 207 21 $4,112,400 $2,024,000 $123,372Bridges 46 1 11,484 $28,626,143 $3,996,756 $858,784Footbridges 86 2 3,826 $5,356,400 $1,364,681 $160,692Major culvertsand causeways58 1 $8,701,336 $2,091,781 $261,040Drainage Pits 21,535 $36,553,348 $9,825,453 $1,096,600Pipes 20,891 572 $366,426,458 $98,494,556 $1,832,132RoadsidefurnitureSignage 26,455 $2,691,431 $585,095 $80,743Bus shelters 322 $2,931,780 $592,074 $87,953Roundabouts 84 $14,276,233 $72,500 $428,287Linemarking 5,886 649 $1,691,451 $350,399 $50,744Total 89,808 4,346 $1,892,336,916 $352,206,217 $45,609,406The data for roads includes all roads for which Council has some degree of responsibility.Infrastructure67

Application of additional rates increaseProjectAllocation ofadditionalmaintenancefunds$‘000Existingfundingfor theseprojects$‘000Totalprojectexpenditure$‘000Category/descriptionCivil InfrastructureAvondale Road, Dapto 194 -2 192 Kerb and gutter constructionSouth Avondale Road, Avondale 113 1 112 Roads - renewalRTA Bridge Connect, Wombarra 315 166 481 Footpath/cycleway constructionPrinces Highway, Unanderra 25 1 26 Footpath/cycleway constructionGeorge Hanley Drive, North Wollongong 313 30 343 Kerb and gutter constructionRoads - renewalGipps Street, Wollongong 20 -3 17 Footpath/cycleway constructionCrib Lock Replacement, Corrimal 312 294 606 Footpath/cycleway constructionRetaining wall - renewalKerb and gutter constructionJerramatta and Werowi streets, Dapto 49 1 50 Footpath/cycleway constructionNorthcliffe Drive, Berkeley 19 0 19 Footpath/cycleway constructionSemaphore Road, Berkeley 40 2 42 Guardrail constructionDarcy Road, Port Kembla 137 -1 136 Roads - renewalStratford Road, Unanderra 160 3 163 Roads - renewalJohn Crehan Park, Cringila 100 -1 99 Car park constructionCowper Street, Warrawong 15 1 16 Footpath/cycleway constructionBaan Baan Street, Dapto 66 1 67 Footpath/cycleway constructionReseals - Citywide 1,122 1,705 2,827 Roads - renewalWilliamson Street, Tarrawanna 100 602 702 Kerb and gutter constructionCompton Street, Dapto 11 -1 10 Drainage/removal of damMt Ousley Road 21 282 303 Overhead power relocation/installation of conduitsStrone Avenue, Mt Ousley 20 -2 18 Footpath/cycleway constructionMt Ousley 42 0 42 Drainage/culverts constructionWinnima Way, Berkeley 46 2 48 Roads - renewalStaff Street, Wollongong 3 19 22 Footpath/cycleway constructionReddalls Road, West Dapto 109 20 129 Drainage constructionBus shelter installations 150 42 192 Bus ShelterBellambi boat ramp 6 14 20 Boat ramp maintenanceOcean Park, Woonona 41 20 61 Car park renewalVenn Street, Berkeley 9 5 14 Footpath/cycleway constructionSierra Drive, Horsley 33 99 132 Traffi c management/roundaboutconstructionInfrastructure68Homestead Drive, Horsley 23 114 137 Traffi c management/traffi c signalsThirroul Beach, Thirroul 39 154 193 Footpath/cycleway constructionHarry Graham Drive, Kembla Heights 38 258 296 Roads to recovery/roads renewalEntertainment precinct 76 176 252 Footpath/cycleway constructionCar park renewalEndeavour Drive, Wollongong 47 170 217 Footpath/cycleway construction

Application of additional rates increase (continued)ProjectAllocation ofadditionalmaintenancefunds$‘000Existingfundingfor theseprojects$‘000Totalprojectexpenditure$‘000Category/descriptionCivil Infrastructure (continued)Gipps Street, Wollongong 65 239 304 Roads - renewalThe Ridge, Helensburgh 8 145 153 Kerb and gutter constructionRoads - renewalPrinces Highway, Bulli 13 14 27 Footpath/cycleway constructionTraffic facility improvements - General 100 45 55 Traffi c facilitiesTotal expenditure for Civil Infrastructure 4,000 4,523 8,523BuildingsSafety equipment 27 0 27 All works completedDistribution board upgrade 57 1 58Additional scheduled maintenance - Variousprojects/buildings416 0 416Total expenditure for Buildings 500 1 501Recreation and park assetsBotanic Gardens - Mercury Fountain work 8 0 8 Minor rectifi cation worksCorrimal pool 38 0 38 Modifi cations to shell, expansion jointsand the replacement of cracked/broken tilesLifeguard assets 6 0 6 Replacement of rescue boards andtubesBeaton Park fencing 6 6 12 Perimeter control fencingJudy Masters fencing 17 15 32 Perimeter control fencingBulli Park fencing 13 11 24 Perimeter control fencingFlagstaff Hill retaining wall 19 0 19 Replace/refurbish wallPioneer Beach bridge 8 0 8 PaintingSidney Laneway tree replacement 5 0 5 Removal/transplanting of treesAsset failure - Stuart Park 12 0 12 BBQ electrical rewiringBeaton Park Leisure Centre pool blanket 21 0 21 Replacement of pool blanketsBotanic Garden car park enclosure 14 0 14 New fencing and vehicular gateBott Drive - Lightpole removal 3 0 3 Electrical supply/pole replacedStrachan Park - Pathway replacement 13 0 13 Replacement of hazardous pathwayThirroul tennis courts pole removal 5 6 6 Replacement of condemned poleBotanic Garden - Middle Creek bridge 2 0 2 Replace failed assetGallipoli Street - Pergola 60 0 60Total expenditure for recreation and park assets 250 33 283Total additional asset renewaland maintenance expenditure4,750 4,557 9,307Infrastructure69

PROGRAM GOAL: Effective management and minimisationof waste collection and disposal whilst encouragingcommercial and residential recycling.Chris Sallons from our waste contractor,Thiess Services, prepares for a greenwaste collection.

Collection, Recyclingand DisposalWaste management policiesWe remain fi rmly committed to thereduction of waste to landfi ll. Our domesticwaste collection services consist of weeklygarbage services, fortnightly recyclingand green waste services and an annualclean up service. Residents have a priceincentive to use small capacity garbagebins and, at present, approximately 95%of households use either the 80 litre or120 litre garbage bin, instead of the 240litre bin.The structure of prices and the provisionof green waste and recycling facilities atour waste disposal depots at Helensburghand Whytes Gully (West Dapto) alsoencourage residents to reduce wastedisposed of by landfi ll.Waste levyThe state government has changedthe structure of the waste levy, which isapplied to any waste disposed ofto landfi ll.For the fi rst time in 2005-06, levypayments were made on clean fi ll usedto construct the embankments atHelensburgh and Whytes Gully wastedisposal depots. From 1 July 2006 the levywill increase from $15 per tonne to $23.10per tonne for waste disposed to landfi ll.Implementation of new initiativesUnder the requirements of the Departmentof Environment and Conservation landfi lllicence at Whytes Gully, a new stormwaterwetland system was commissioned in2005-06. The system has improved thequality of runoff from areas around thelandfi ll during excessive wet weather,through the use of aquatic plants and alonger fl ow path and storage times forthe stormwater.Two new leachate dams werecommissioned in the second half of2005-06. The dams increase the storagevolumes for landfi ll leachate, reducingthe risk of overfl ows during times ofexcessive rain.Advertising and promotionInformative stories and advertisementsappeared in various media outlets ona range of topics including the annualhousehold clean up, chemical collection,recycling at beaches, school competitions,school holiday and community workshopsat our Waste Education and Visitor Centre,and promotion of Earthworks coursesto people from a Non English SpeakingBackground and the broader community.Our website has information on abroad range of waste management andminimisation subjects including collectionschedules, the annual household cleanup, waste disposal depot charges, schoolcompetitions, and a variety of fact sheets.School competitionsOur Truck Art 2006 competition saw localstudents submitting designs to brightenCouncil's waste collection trucks. Thecompetition was held across threecategories – recycling made simple,green waste as a resource, and reducinghousehold waste – and attractednearly 500 entries from more than 14schools across the Wollongong LocalGovernment Area.The winning artworks came from DaptoHigh School, St Mary Star of the SeaCollege and Otford Public School. Thewinning schools each received $1,000 fortheir school environmental managementplans, and the winning students eachreceived $200. The extremely creative andcolourful designs will appear on the wastecollection truck fl eet from July 2006.Collection,Recycling andDisposal OutlookWe will continue acapital works programat Whytes Gully, andexplore innovativeways to encourage thecommunity to furtherincrease recycling andreduce the amount ofwaste going to landfi ll.Waste information kitsThe annual recycling and wasteinformation kit was distributed to allhouseholds in the local government area.The kit contained a household cleanup brochure and a booklet containinginformation on our range of wasteservices including a user friendly collectioncalendar, information on how to use thewaste bins correctly and waste depotinformation.The kit is also distributed to real estateagents and is made available to all newtenants and property owners in the area.Performance Against ObjectivesWaste ManagementExpenditure $18.40mWaste ManagementIncome $19.57mCollection, Recyclingand Disposal$18.40mCollection, Recyclingand Disposal$19.57mWaste Management expenditurevs. total Council expenditureTotal Waste Management expenditure was $18.40mor 11.30% of total Council expenditure ($162.92m).Waste Management incomevs. total Council incomeTotal Waste Management income was $19.57mor 12.41% of total Council Income ($157.74m).Waste Management71

National Recycling WeekWe conducted a busy program ofactivities during National Recycling Weekin November 2005, including tours of theMaterials Recycling Facility, workshops oncomposting, worm farming and recycledart and craft for the garden, and shoppingcentre displays.We also coordinated a media campaignpromoting our activities, along with smarttips for grocery shopping and the benefi tsof household recycling.Glengarry CottageWollongong's Waste Education and VisitorCentre, Glengarry Cottage, continues tobe a centre of excellence in promotingresponsible waste management. In2005-06, 28 schools from the Illawarraand beyond visited Glengarry, with morethan 1,000 students taking part in oneor more 'waste wise' workshops. Schoolholiday programs also continued to attractstrong interest, with all workshops fullybooked.Residents from a range of multiculturalbackgrounds including Portuguese,Vietnamese, Turkish, Argentineanand Polish completed the centre's'Earthworks' program. Topics includedworm farming, composting, tours of thelandfi ll and recycling facility, craft makingusing recycled materials, smart shoppingand green cleaning.The Seniors Week program in Aprilsaw 22 people participate in handsoncomposting and no dig gardenworkshops at Glengarry. A number ofcommunity groups, including FernhillMental Rehabilitation Centre, Headwayand Essential Personnel, also took part inwaste wise workshops and a program ofactivities was conducted in the lead-up toChristmas to promote recycled artand craft.A highlight of 2005-06 was a visit by 48council delegates from Thailand, keen tolearn about our waste minimisation andmanagement methods.Green Team activitiesThe Green Team continues to educatethe community about the correct use ofthe domestic waste collection service.During the year, more than 1,200households were visited to resolve issuesin using the service. The team alsodelivered waste reduction presentationsto 64 community groups, and conducted55 workshops for schools.School children learn how to makecompost at our Waste EducationCentre, Glengarry Cottage.Waste Waste Management Management12772

The team helped set up compost bins,worm farms and no-dig gardens withselected Department of Housing blocksand schools, and conducted displaysand talks at school and street fetes ontopics such as worm farming, composting,recycling and natural cleaning.Free syringe disposalThe free 'no questions asked' syringeand sharps disposal service continuedin 2005-06, enabling people to disposeof these items in a safe and responsiblemanner. More than 1,100kg of syringesand sharps were disposed of under theprogram.Thirty two local pharmacies participatein the program, in suburbs includingBalgownie, Bellambi, Bulli, Corrimal,Cringila, Dapto, Figtree, Gwynneville,Helensburgh, Keiraville, Port Kembla,Thirroul, Unanderra, Warrawong, Windang,Wollongong and Woonona.Returning unwanted medicinesThe RUM (Return of Unwanted Medicines)program continues to work well. Operatingyear round, it invites residents to returnany unwanted medicines to their localpharmacy. The program is advertisedregularly in the Advertiser newspaper.Litter removalIn total, 497 requests were received forlitter removal during the year. These wereall acted upon.State government requirementsCouncil staff liaised with the Departmentof Environment and Conservation (DEC)and all DEC requirements were metduring the year. Council contributed to thepreparation of a waste opportunities paperin cooperation with DEC and the SouthernCouncils Group. Although considerationof the paper is at an early stage, itrecommends that councils within the regionseek opportunities to act collaboratively onsolving waste management issues.Council’s licenced landfi ll sites atHelensburgh and Whytes Gully bothcomplied with DEC and Sydney Waterlicence requirements during 2005-06.Whytes Gully capitalworks programWork on a new access road at theWollongong Resource Recovery Parkwas completed at a cost of just under$900,000.The access road forms part of alarger project for a materials receival/transfer facility, with works to continueover a number of years and to includeconstruction of a new weighbridge.Waste disposed of to landfillDomestic waste servicesDomestic waste collectedRecycling collectedRecycling serviceparticipation rate110 (‘000 Tonnes)1051009590109,21494,00198,57793,08795,40574,00073,00072,00071,00070,00071,29572,06773,05474,04474,8099.5 kg/service9.08.58.07.58.688.479.079.289.41120 kg/service115110105100115.56112.76114.49116.77117.49100 %9080706089888891918501-0202-0303-0404-0505-0669,00001-0202-0303-0404-0505-067.001-0202-0303-0404-0505-069501-0202-0303-0404-0505-065001-0202-0303-0404-0505-06We have achieved an excellentresult in maintaining a reducedamount of waste going to landfi ll.This can largely be attributed toour ongoing community educationprograms on waste reduction.We have experienced a steadyincrease in the number ofdomestic waste services, affectedby new subdivisions.Although small fl uctuationshave been experienced overthe past fi ve years, the result issatisfactory.The high level of recyclingmaterial collected can beattributed to our ongoingcommunity education programsand the work of our Green Team.We continue to attract highparticipation rates for ourrecycling service.Recycling material collectedContamination rate forrecyclingGreen Waste collectedGreen Waste serviceparticipation rateAnnual clean up materialcollectedNumber of commercialpremises using Council’srecycling services10.0 kg/service1.6 kg/service23 kg/service58 %2.5 (‘000 Tonnes)5009.89.69.49.29.09.639.409.5401-0202-0303-0404-059.749.7805-06The amount of recycling materialcollected per service appears tohave stabilised.1.41.21.00.80.61.511.091.241.211.3201-0202-0303-0404-0505-06Our community educationprogram aimed at reducingcontamination rates in recyclingservice continues to be effective.222120191822.5921.1920.5920.8420.6801-0202-0303-0404-0505-06The volume of green wastecollected per service hasremained relatively stable over thepast three years.56545250485653555601-0202-0303-0404-055505-06Participation rates have remainedfairly constant over the years. Thisis a refl ection of our communityeducation initiatives to encouragehouseholds to compost theirgreen waste at home.2.01.51.00.501.581.812.071.872.0201-0202-0303-0404-0505-06Total amount of material collectedhas remained relatively stable.47545042540037543345851150449701-0202-0303-0404-0505-06The number of commercialpremises using our recyclingservice remains high, with only aslight decrease evidenced overthe past two years.73127Waste ManagementWaste Management

PROGRAM GOAL: To have anenvironment that is sustainable,diverse and conducive to a highstandard of environmentaland public health.Managing traffic safety around St PiusPrimary School, Unanderra.

EnvironmentEnvironmental complaintsThe community helps us protect theenvironment by reporting incidents ofenvironmental harm. During the year wereceived 125 environmental complaints,with 100% actioned within 14 days. Theresponses resulted in noise reductions,improved water quality, cleaner air anda general improvement in environmentalquality. The number of complainantsdecreased substantially from last year.Industrial assessment programUnder NSW environmental legislation,Council is responsible for theenvironmental regulation of a largenumber of local small and mediumsized industrial premises. In our role asregulator we continued to implement anindustrial assessment program, whichaims to work closely with Wollongong’sindustrial community to ensurecompliance with legislation and adviseon the best management practices toreduce operating costs and improveenvironmental performance.Since May 2005 we have completed496 industrial assessments and haveforwarded reports to these businessesoutlining requirements to rectify ongoingor potential environmental problems, aswell as recommendations on improvingenvironmental performance. Overallresponse to the program has beenpositive, and a comprehensive reviewof the program is planned in 2006-07following completion of the current roundof inspections.Environment and HealthExpenditure $3.67mRangerServices$1.29mEnvironment$1.88mHealth$0.51mEnvironment and Health expenditurevs. total Council expenditureTotal Environment and Health expenditure was$3.67m or 2.26% of total Council expenditure($162.82m).Illawarra EscarpmentStrategic Management PlanIn response to the fi ndings of aCommission of Inquiry on the IllawarraEscarpment, Council has completedthe Illawarra Escarpment StrategicManagement Plan (IESMP) for this iconicfeature of our local environment. The planwas developed with input from numerousstate government agencies, a communityreference group, and the broadercommunity.The IESMP recognises environmentallysignifi cant areas of the escarpment andfoothills, looks at current land usage andidentifi es appropriate changes to existingland use zones in order to better conserveand manage the conservation values ofthe landscape. It examines how planningpolicies can be consistently appliedto public and private land use alongthe escarpment, as well as identifyingvoluntary land management options.In May 2005 Council endorsedthe Illawarra Escarpment StrategicManagement Plan and forwarded it to theMinister for Infrastructure, Planning andNatural Resources for approval.The Minister approved the IESMP subjectto a number of amendments. Councilendorsed the revised IESMP, incorporatingthe proposed amendments from theMinister for Planning in March 2006.Environmentalmanagement systemFollowing completion of an environmentalreview we have continued to implement anenvironmental management system acrossthe organisation. As part of the program,each work project carried out requires aReview of Environmental Factors (REF)which assesses the scope of the activity,identifi es any environmental impacts andoutlines how to remove or mitigate them.To date 200 REFs have been completed.Environment and HealthIncome $1.63mRangerServices$1.33mEnvironmentOutlookImplementation ofthe crucial IllawarraEscarpment StrategicManagement Plan andcompleting variousassociated studies willbe a key focus for thenext twelve months.We will also continueour diverse programof environmentaleducation andpromotional activities,and work with localindustry to promotebest practiceenvironmentalmanagement methods.Estuary management programThe program known as Integrated EstuaryManagement in Urban Wollongonghas continued towards protecting theecological, social and cultural valuesalong our coastal creeks and lagoons.In December 2005 Council endorsedan estuary management plan for Fairy,Towradgi and Hewitts/Tramway creeks.Preparation of the plan was overseenby Council’s Estuary ManagementCommittee, and was informed by variousstudies and the Towradgi Creek foreshorelandscape plan.Environment$0.12mHealth$0.18mEnvironment and Health incomevs. total Council incomeTotal Environment and Health income was $1.63mor 1.03% of total Council income ($157.74m).Environment and Health Performance Against Objectives75

We received a grant of up to $165,000from the Department of Natural Resourcesto match 50% of our expenditure.This money is being used to implementthe recommendations of the estuarymanagement plan. In addition to theplan, a data analysis and review plan wasprepared for 11 additional estuaries, fromHargraves Creek, Stanwell Park in thenorthern suburbs to Tom Thumb Lagoonin the south.Natural resourcesmanagement planThe ground truthing study, whichincorporated both coastal andescarpment sites, led to production of anupdated vegetation map and fi eld surveysresulted in the collection of 500 additionalsurvey sites. The updated informationwill better inform key Council planningobjectives such as those in the IllawarraEscarpment Strategic Management Plan.The weed management strategyidentifi ed key directions for futuremanagement of weeds on Escarpmentlands and highlighted priority areas andweeds to manage across the studyarea. It also outlined strategies forbetter communication, monitoring, andincreased dialogue between Counciland key community members andeducation programs.State of the Environment ReportThe 2004-05 State of the Environment(SOE) report was completed in November2005 and released to the community.Copies were lodged with relevantgovernment agencies and made availableon our website.The SOE is a community report card onthe health of our environment. Detailedinformation is provided on local air andwater quality, land, biodiversity, heritage,noise, waste management, social andsustainability issues. The report identifi esthe threats and pressures on theenvironment and the responses neededto address them. The report also includesa summary of projects undertaken withfunding from the Environment Fund.Details of these projects are contained inthe Environmental Management Programchapter of this report.School and communitypresentationsDuring 2004-05 we conducted 219presentations, 100 to local schools anda further 119 to community groups.The number of presentations is highlydependent on the projects undertakenin a particular year. This year we had afocus on sustainability in schools and thebusiness community.Community clean upsWe are fortunate to have a highlymotivated community that takes pride inthe city and in environmentally sustainableactivities. The Rise and Shine SustainableEnvironment program has been extremelysuccessful in forging partnerships betweenCouncil, the community, schools and localbusinesses, facilitating 363 clean ups andcollecting nearly 86 tonnes of rubbish.In September 2005, the Rise and Shineprogram celebrated its 20 th anniversary.The clean up campaign based on thismilestone was a huge success and weundertook a record 130 clean ups at 20local schools. The campaign focused onpublic education and the promotion ofsustainability, environmental awarenessand enhancement.Weekly education columns appeared inlocal media for the 13 weeks of Spring,focusing on different environmentalthemes. We produced a colourfulenvironmental education calendarpromoting sustainable living and the Streetof the Week competition continued tobe popular. The Rise and Shine programconcluded with an environmental awardsnight at Wollongong Town Hall.World Environment DayEach year we celebrate WorldEnvironment day on 4 June with an expoat the Wollongong Botanic Garden.This year’s expo was postponed dueto rain and has been re-scheduled forSeptember 2006. The festival will nowrun in conjunction with the launch of theRise and Shine program. More than 1,000local school students from Years 5 and6 have registered for 'Enviro 06', and arescheduled to take part in a selection ofhands-on environmental workshops.Cities for Climate ProtectionWe have committed to the ‘Cities forClimate Protection Plus’ (CCP), a programdesigned to help local communities reducegreenhouse gas emissions and providefunding and assistance to progressthrough fi ve milestones. We have achievedour fi nal milestone and are continuing todevelop sustainability strategies to buildupon these initial targets.We achieved success through programssuch as Sustainability Begins at Home,Sustainability in the Workplace, waste wiseworkshops, composting and recycling atGlengarry Cottage and revegetation ofland by numerous Bushcare groups. Wealso identifi ed opportunities to improveCouncil’s practices and policies andhave implemented measures to reduceemissions from our transport activitiesthrough fl eet management, and reduceelectricity emissions by installing powerfactor correction in key buildings. Moreinformation on specifi c education andsustainability programs can be found inthe Environmental Management Programchapter of this report.Number of environmentcomplaintsPercentage of industrialpremises environmentallyauditedNumber of septic systemsassessedNumber of community cleanups undertakenTonnage of litter collectedNumber of presentationsto schools and communitygroups1,00050025040011025080060084081640030042820015023935030034936834036310090112103200150202174219Environment and Health7640020051835712501-0202-0303-0404-0505-060We received 125 environmentalcomplaints during the year, and allwere actioned within 14 days.200100075341178101-0202-0303-0404-0505-06428 industrial audits werecarried out during the year witha total of 496 assessmentscompleted since the new programcommenced.100500166186301-0202-0303-0404-0516005-06The number of septic systemsassessed is dependent on theextent of building activity in nonserviced areas.25020015025001-0202-0303-0404-0505-06This number varies depending onthe number of groups involvedwith Clean Up Australia Dayactivities and the resourcesavailable to manage clean upsand the removal of rubbish.807060876801-0202-0303-0404-058605-06The amount and weight ofrubbish collected varies eachyear based on the amount ofrubbish illegally dumped, the typeof rubbish collected, the numberof volunteers available for majorclean ups and the participationof parole workers undertakingcommunity service.100500905001-0202-0303-0404-0505-06The number of presentations eachyear depends on the projectsbeing undertaken. In 2005-06the environment team conducted219 presentations; 100 to localschools and 119 to communitygroups.

In September 2005,the Rise and Shineprogram celebratedits 20 th anniversary.Environmental Officer Mike McKeonprepares for the launch of annual Rise andShine activities.Environment and Health77

Environment and Health78Chris Pike from Environment and Healthcarries out a food inspection at one of thecity’s restaurants.

Local Action 21 PlanWe have implemented numerous projectsrelated to energy, water and biodiversityas part of the overarching Local Action21 program. The plan is continuing toprogress, driven and monitored by asustainability management committee.HealthInvestigating health complaintsThis year, we received 525 healthcomplaints and all were actioned within14 days. Our health team is requiredto investigate a range of complaintsincluding premises that are unhealthy orunsafe because of the keeping of birdsor animals, risks associated with unsaferemoval of asbestos, weed infestation,overfl owing sewage or stormwater, orgeneral disrepair or vandalism.Food premises inspectionsWith recent and ongoing changes to foodsafety standards and food handling laws,our health offi cers have continued both aneducation and an enforcement role. Theyhave endeavoured to promote consistentand comprehensive assessment of all foodhandling activities.Inspections of food premises are carriedout on an annual basis. In 2005-06, 77%of the city's registered food premises wereinspected, equating to 599 food premisesand 721 inspections. The increasednumber of inspections occurred because122 premises required follow up action asa result of non compliance at the time offi rst inspection.Inspection of cooling towersRoutine inspections were carried out on allthe city’s water cooling towers and mostof those located in the city centre weresampled and inspected twice. Followingfi nal inspection, all towers complied withthe requirements of the Public Health Act.Number of healthcomplaints received80070060050040080665955168401-0202-0303-0404-0552505-06300Over the past fi ve years fi guresshow that while the number ofcomplaints received varied, allcomplaints were actioned within14 days of receipt.Number of food premisesclassified and inspected80070060050040030060138581001-0202-0303-0404-0573772105-0677% of food premises wereinspected, representing visits to721 facilities.Council’s microbial control programgoes beyond the minimum requirementsof the Public Health Act and we continueto monitor, sample and inspect towersto ensure they comply with legislativerequirements. Our cooling tower registeris updated regularly to ensure remedialaction is taken quickly and effi cientlyin the wake of an emergency. We alsoensure all fi eld staff undergo microbialcontrol training so cooling towers canbe inspected and sampled as quickly aspossible in the event of an incident.We completed a review of the frequencyof cooling towers testing and resolvedto increase testing in the city centre andundertake risk assessments on all towersto determine if they too should undergoincreased testing.Caravan parks andmanufactured home estatesAll ten caravan parks and manufacturedhome estates in the city were audited forhealth and fi re safety requirements underthe updated Regulations for CaravanParks and Moveable Dwellings.Foodsafe programThrough the Foodsafe program wehave continued to help the operators offood premises comply with changes tolegislation in the area of food handling andthe monitoring of cleaning practices andtemperature control. Since the program’sinception in 2002 we have accredited 981food handlers. In 2005-06 we accredited71 food handlers, a similar fi gure to theprevious year.Illawarra Liquor AccordOur health offi cers represent Council atall meetings of the Liquor ConsultativeCommittee. The Illawarra Liquor Accordcovers a number of issues includingresponsible service of alcohol, drinkspiking, supply to minors, smokingregulations, linkage programs for licensedpremises and security matters.Staff educationWe have attended several workshopsconducted by the NSW Food Authority,revising topics such as inspectionprocedures, labelling, operation of kebabshops and sampling procedures. We alsoattended workshops conducted by theNSW Health Department covering topicsincluding swimming pool water treatmentand testing, skin penetration andcooling towers.Shared accommodationAll 25 licensed shared accommodationpremises in the city were audited toensure compliance with local governmentregulations for fi re safety and public health.Health OutlookWe will continue towork with food-relatedbusinesses to helpoperators keep abreastof changing legislationand maintain ourvigilance in monitoringair conditioning coolingtowers throughout thecity. Our health teamwill maintain its ongoingschedule of inspectionsand response tocomplaints, and keepup to date with thelatest regulations andpractices.Mortuary registrationsThe inspection and licensing of registeredmortuaries is a requirement under thePublic Health Act. We inspected all tenmortuaries in the city and all complied withlegislative requirements.Skin penetration industriesWe inspected ten skin penetration premisesfor compliance with the Public Health Act1991, the NSW Health Skin PenetrationGuidelines and the Local Government Act,1993. All were found to be in compliance.RangersEnforcing legislative requirementsA variety of activities impact on the localenvironment, and we have the responsibilityof dealing with complaints about issuessuch as abandoned motor vehicles,air pollution from solid fuel heaters andbackyard burning, water pollution frombuilding sites, on site waste managementsystems and general domestic waterpollution matters, obstructions in publicplaces, domestic noise pollution fromroosters, air conditioners, loud music,building sites, animals other than barkingdogs, unkempt industrial and commercialpremises, swimming pool fencing, andillegal development.In 2005-06 our rangers dealt with 1,716complaints and all were actioned within 14days. This is an improvement on last yearwhen we received 2,573 complaints andactioned 93% of complaints within14 days.Environment and Health79

Rangers OutlookOver the coming yeara major project willbe implementing newoff-leash areas fordogs across the city.We will also renew ourefforts to promote catmicrochipping to helpincrease the numberof lost cats reunitedwith their owners. Anincrease in parkingrangers will intensifyour focus on enforcingparking regulations,and we will continue torespond effi ciently to arange of environmentalcomplaints.Managing the city's parkingWe have a responsibility to manageparking issues under the Australian RoadRules and Local Government Act. Thisyear we continued to strive for an effectivebalance between enforcement levels andmonitoring high profi le problem areassuch as the university precincts, schoolzones and clearways. We received 565complaints and took action on all of thesewithin seven days.In 2005-06, 9,276 penalty infringementnotices were issued to the total value of$1,192,280. This fi gure relates to timedparking, no stopping, no parking, stoppingin bus zones, parking in loading zones,parking illegally in disabled parking spacesand parking in restricted areas in Councilparks and reserves. In 2004-05, 10,725penalty infringement notices were issuedfor these offences. The slight reduction ininfringements from the previous year wasdue to staffi ng changes.During the year Council’s executiveendorsed the recruitment of two additionalparking rangers to focus on outlying areasof the city. This increases parking rangernumbers from six to eight.Companion animalsManagement of companion animalsrelates to operation of the pound andenforcement of the Companion AnimalsAct and Impounding Act. Key activitiesin 2005-06 involved receiving, housing,caring for and releasing stray dogs, catsand stock back to their owners. We alsomonitored designated off-leash areasand dealt with complaints about barkingdogs, nuisance animals, restricted anddangerous dogs, and dogs off leash.One of our aims is to increase andupdate animal registrations. This year weregistered 55% local companion animalsand pursued 2,126 unregistered dogowners for compliance. This resultedin 764 direct updates to the register forchange of address, deceased dogs,unknown addresses and sold animals.Of the cases investigated, 736 fi nes wereissued to non compliant owners.Another key objective is to return lostpets to their homes. This year, 942 dogswere impounded and of these, 530 dogswere reunited with their owners whichis a successful and consistent rate.Approximately 94% of the dogs returnedhome were microchipped or registered,allowing a quick and effi cient reunion. Theresult also indicates that despite intensepublic education, a signifi cant portion ofthe community still does not comply withmicrochipping and registration legislation.This highlights the need for continuationof our current microchipping andregistration program.Our success rate with cats remains low.This year 149 cats were impounded withonly 31 cats returned to their owners.This is a reduction from last year andindicates an increased number of strayferal cats and low levels of microchippedcats. Changes to the Companion AnimalsAct require Council to provide additionaleducation regarding owner responsibilities.Education regarding the microchipping ofcats will be a priority in the coming year.Off-leash area reviewThe city’s off-leash dog areas werereviewed this year following an extensivepublic exhibition and communityconsultation period. Communitycomments were used to devise adraft report which will be consideredby Council’s executive early next year.Effective implementation of new off-leashareas in the city will be a key project in2006-07.Companion animalmanagement planA draft companion animals managementplan was prepared with communityconsultation, however in 2005-06 adecision was taken not to undertake thisproject as all strategies highlighted arebeing pursued separately. It is anticipateda new plan will be developed at a laterstage to set a new strategic directionfor Council.Environmental complaintsdealt with by rangersParking penaltyinfringementsNumber of dogs in theanimal shelterNumber of dogsreturned homeNumber of cats in theanimal shelterNumber of cats returnedhomeEnvironment and Health802,5002,0001,5001,0005000N/AN/A1,9022,57301-0202-0303-0404-051,716Council rangers dealt with1,716 complaints, and actioncommenced for all within 14days. Complaints fell from theprevious year, and there wasan improvement from the 93%actioned within 14 days in2004-05.05-0615,00012,50010,0007,5005,0002,500N/A2,82714,31701-0202-0303-0404-0510,7259,27605-069,276 penalty infringementnotices were issued, to the totalvalue of $1,192,280. This wasa slight reduction on previousyears due to one parking offi cerbeing assisted through injurymanagement.1,3001,2001,1001,0009008001,0731,3481,1771,07101-0202-0303-0404-05942 dogs were impounded, adecrease from previous years.94205-0680070060050040030045983774171701-0202-0303-0404-0556% of dogs impounded werereunited with their owners.53005-06250200150100500N/A18125216801-0202-0303-0404-05149 cats were impounded, adecrease from previous years.14905-0610080604020N/A79703601-0202-0303-0404-053105-06021% of cats impounded werereleased to their owners. Thisfi gure remains low due to the lowlevels of microchipped cats.

The city's off-leash dogareas were reviewed thisyear following an extensivepublic exhibition andcommunity consultationperiod.Renee Campbell and her dogKilo enjoy a run along the offleash beach in Coniston.Environment and Health81

PROGRAM GOAL: To effectively manage Council’s propertyportfolio and ensure an appropriate rate of return onCouncil’s commercial assets.Ron Linsley inspects threecabins at the popular BulliTourist Park.

Commercial BusinessOperating surplus levelsat tourist parksOur tourist parks at Bulli, Corrimal andWindang generated income of $3.72million with an operating surplus of $1.08million. This is a 22% increase in theoperating surplus from 2004-05.During the year the tourist parksachieved a 12% return on investment,falling short of the 14% goal. The mainreason for the shortfall was unforeseenstaffi ng issues resulting in increasedwages and salaries at the parks.Tourist parks occupancy ratesThe cabin accommodation occupancyrates was 65%. This is a slight decreasefrom the previous year; however this wasexpected because three additional cabinsat Windang only became available inDecember 2005 and were only marketedfor half a year.CommercialBusiness OutlookMajor projects includeimplementing ourcrematorium andcemetery strategic planand continuing to buildmarket share and meetthe needs of visitorsto our facilities. We willalso increase promotionof our tourist parks tocapitalise on newly-builtluxury cabins.Customer satisfactionwith tourist parksCouncil’s tourist parks are importantfor local tourism as they provide a widevariety of accommodation options andcater to diverse customer needs, tastesand budgets. Feedback from our2005-06 customer survey showscustomer satisfaction in all areas,particularly friendliness, cleanlinessand value for money. The survey alsoidentifi ed a desire for new facilities at thetourist parks including a kiosk/café andresort style pool, along with provision oflinen and tea and coffee making facilitiesin cabins.Tourist park cabin productionpartnershipWe continued our successful partnershipwith Wollongong TAFE to produce anddeliver three cabins in return for practicalwork experience within the building trade’scurriculum. Three luxury cabins were builtat Windang tourist park, with the projectcompleted on time and within budget.New facilitiesWe installed a new security fence at Bullitourist park within budget. Air conditioningunits were also installed in several on sitecabins at Windang tourist park, howeverCouncil voted not to proceed with newplay equipment at Corrimal tourist park asfunds were diverted elsewhere.Memorial gardensoperating resultsThe Wollongong City Memorial Gardensand Cemeteries recorded an operatingdefi cit of $105,775 in 2005-06. Thisexceptional result is primarily due tothe increased income at Wollongonglawn cemetery, excellent sales in theMacedonian section and the increasedmemorialisation at the memorial gardens.Tourist parkssatisfaction levelsResponsiveness of staff71% of respondents indicated excellent.Friendliness of staff74% of respondents indicated excellent.Cleanliness68% of respondents indicated excellent.Value for money53% of respondents indicated excellentand a further 35% indicated good.Amenities51% of respondents indicated excellentand a further 40% indicated good.Maintenance50% of respondents indicated excellentand a further 37% indicated good.The lowest response rate was 1,543people with the highest being 1,742.A comparison with the previous yearindicates that satisfaction levels haveremained fairly stable.Burial market shareCouncil operates in a highly competitiveenvironment for the provision of burialservices. Our performance is monitoredthrough monthly and quarterly reportswhich detail progress against keyperformance indicators. In 2005-06 wewere commissioned to undertake 227 ofthe 518 available burials in the Wollongongarea. Despite the closure of Bulli cemeteryfor new ground burials in May 2006 andthe competitive market we operate in, weexceeded the indicated market share of43%. In total, Council provided 44% of theavailable burials in the Wollongong area.Performance Against ObjectivesCommercial DevelopmentExpenditure $4.60mCommercial DevelopmentIncome $7.58mPropertyService$0.41mCommercialBusiness$4.19mCommercial Development expenditurevs. total Council expenditureTotal Commercial Development expenditure was $4.60mor 2.82% of total Council expenditure ($162.82m).PropertyService$2.33mCommercialBusiness$5.25mCommercial Development incomevs. total Council incomeTotal Commercial Development income was $7.58mor 4.81% of total Council income ($157.74m).Commercial Development83

Tourist Parks operating surplusOPERATING SURPLUS 2001/02 2002/03 2003/04 2004/05 2005/06BULLI 281,076 257,808 343,790 381,741 350,552CORRIMAL 323,021 223,412 410,303 275,161 474,327WINDANG 280,742 164,056 244,148 184,865 257,771TOTAL 884,839 645,277 998,240 841,767 1,082,650% Increase/Reduction -13.18% -27.07% 54.70% -15.67% 22.25%Bulli % Increase/Reduction -22.13% -8.28% 33.35% 11.04% -8.17%Corrimal % Increase/Reduction -9.82% -30.84% 83.65% -32.94% 41.99%Windang % Increase/Reduction -6.41% -41.56% 48.82% -24.28% 28.28%Cremation services market shareA total of 1,541 cremations were carriedout in Wollongong during 2005-06, withCouncil performing 1,166 of these. Thisequates to 76% of market share, meetingthe performance target. Although weface strong competition for the availablecremations, we continue to meet andexceed the performance indicators formarket share.We have also continued to drawpatronage from the far South Coastand have attracted increased cremationservices from Sydney funeral directors.Memorialisation resultsA signifi cant percentage of thecrematorium’s income comes from thememorialisation of cremated remains, notonly within the memorial gardens but alsoat Helensburgh, Scarborough and Bullicemeteries. This is an important serviceand prolongs the life of cemeteries afterthey are closed for burials. The rate ofmemorialisation for 2005-06 was 30%with 6% of cremations still awaitinginstructions for disposition. When notifi ed,this has the potential to increase thenumber of placed ashes for the year, aswe allow our customers up to 12 monthsto decide on the placement ofcremated remains.The percentage of ashes collectedby customers has increased, due topatronage by Southern Highlandsfuneral directors.Memorial gardens stage 2We commenced design work in January2006 and completed installation of thememorial walls and fencing on time andwithin budget. Painting, path installationand garden planting will continue into thenew fi nancial year. Clients have shownstrong interest in purchasing the positionson the new wall with four positions alreadyon hold.Crematorium and cemeterystrategic planThis year we hired a specialist consultantgroup to develop a strategic plan for thecrematorium and cemeteries business,including Wollongong lawn cemetery.After consultation with councillors,management and staff members, astrategic plan was developed andadopted outlining business goals, futuredevelopment strategies and a range ofproposals to improve current marketshare.Tourist park cabinoccupancy rateOperating surplus levels ofWollongong City MemorialGardensCremations market shareNumber of cremationsCemetery market shareNumber of burialsCommercial Commercial Development Development1278470 %65605550456165646901-0202-0303-0404-056505-06The occupancy rate decreasedslightly as three new cabins wereinstalled in December 2005 andwere only marketed for half a year.-$250 (‘000)-$200-$150-$100-$50-$0-226.53-18.13-252.5001-0202-0303-0404-05-102.78-105.7805-06We recorded a lower defi cit thanlast year due to increased incomeat Wollongong Lawn Cemetery,excellent sales in the MacedonianPortion and increasedmemorialisation at WollongongCity Memorial Gardens.78 %77767574737677777801-0202-0303-0404-057605-06While market share has fallenmarginally, we have maintainedthe number of cremations.1,1501,1001,0501,0009509001,0921,1521,09401-0202-0303-0404-051,1701,166We have continued to attractpatronage from the far southcoast and have had increasedpatronage from Sydney funeraldirectors for crematoriumservices.05-0650 %45403530254648374501-0202-0303-0404-054405-06We have continued to work hardto maintain our market shareof the available burials in theWollongong area.22020018016014012022421017520601-0202-0303-0404-0522705-06Of the 518 burial servicesperformed in the Wollongong areain 2005-06, Council conducted227.

Vegetation managementin cemeteriesAs part of our vegetation managementscheme we continued to install crushedgranite paths in the Catholic portions ofWollongong cemetery. This has led topositive feedback from visitors who nolonger have to experience slippery groundunderfoot during inclement weather. Wehave also carried out Spring herbicidespraying for dandelion and milkweed inthe Uniting portions which contain largegrassed areas.Clearing of bushland at Helensburghcemetery did not proceed in 2005-06 asfunding was not allocated under the AssetProtection Zone Bushcare Program forthis project.Fencing at Wollongong cemeteryThere has been considerable communityand media interest in the possibleinstallation of a boundary fence atWollongong cemetery. Followingconsultation with councillors and thecommunity, fencing was considered thebest option for the cemetery’s security. Acapital funding submission was completedand submitted for 2006-07 to enable theinstallation to proceed.Commercial opportunitiesWe conducted a number of feasibilitystudies throughout the year and as a resultexpect to call Expressions of Interest forthe sale of the car park site in UnderwoodStreet, Corrimal in July.We are also investigating Watts Lane,Bellambi, and Council land at Yallah fordevelopment potential, and reviewingother Council landholdings to identify sitessuitable for development or sale.Property ServicesSale of surplus landWe received $404,000 from the sale ofsurplus land. Council also authorised thesale of other areas of surplus land to thevalue of $830,000 and these sales arescheduled to settle during 2006-07. Onesale involves the site of the BalgownieBand Hall, sold at auction in March 2006.The property market has cooled,reducing the demand for developmentproperties. However Council’s land salesare considered satisfactory as the returnis consistent with market trends and inmost cases the sale price was equal to orgreater than the assessed market value.Plans of management forcommunity landThis year an additional 19 propertieswere acquired by Council or transferredto community land. These propertieswill be categorised and incorporatedinto a review of the generic plans ofmanagement expected to be presented toCouncil in August 2006.There are 1,764 community land sitesin total and 1,712 (97%) are covered bya plan of management. The remainingsites require a site specifi c plan ofmanagement and work is progressingon the preparation of these plans inaccordance with Council priorities.Maintaining commercialand residential propertiesExpenditure on repairs and managementof rental properties was $83,600, or 19%of total gross revenue. This is 4% greaterthan our performance indicator and a2% increase on last year. The increasein expenditure was due to major repairson some of the city’s older properties,including re-carpeting, electrical wiringand glass replacement.Property ServicesOutlookThe WollongongGateway Project will bea landmark developmentfor our city, along withrevitalisation of our cityforeshore includingupgrading of the historicAndrew Lysaght Park,and we will continue toconsider options for theWollongong Town Hallsite.Market return oncommercial and residentialleased/licensed premisesAll residential tenancies are achievingmarket rates and three of the sixcommercial tenancies are realisinghigher than market rates. In 2005-06Kembla Terraces achieved a net returnon market value of 13%, well above the11% target. Unit 10 was not included inthe calculations as Council has retainedthis unit for its own purposes. The annualcommercial vacancy rate was zero, whilethe residential vacancy rate of 3% was farless than the 10% target.Cringila recycling centreSubmissions will be called in July 2006for the private sector to undertakedevelopment and ongoing operation of abuilding recycling centre on Council landoff Jarvie Road, Cringila.Percentage of ashescollectedPercentage of ashes placedMaintaining the grounds at theWollongong Lawn Cemetery.64 %6540 %623537363960585657575701-0202-0303-0404-0554This represents an increase inunclaimed ashes.6105-063025201501-0202-0303-0404-05303005-06Memorialisation results– we continue to maintain ourmemorialisation rates in 29-37%range.127 Commercial Commercial Development85

Commercial Development86Power at Mt Keira Summit ParkAs the existing BHP power supply atMt Keira Summit Park is due to bedecommissioned, we are constructingan alternative power supply. Followingapproval from the National Parks andWildlife Service on the proposed route,tenders will be called for installation.Bulli Tops Gateway projectDevelopment of a landmark multipurpose tourist, restaurant andindigenous education facility at BulliTops has been delayed pending theissue of development consent. As partof the assessment of the developmentapplication, we were required to addresssignifi cant and challenging environmentaland Aboriginal heritage issues.These issues have now beensatisfi ed and under Council’s LocalEnvironment Plan, the NSW Departmentof Environment and Conservation - asadjoining land owner - has been notifi edof our intention to issue developmentconsent on 28 July 2006. The tenderprocess will commence as soon aspossible after development consent.Port Kembla andNorth Wollongong surf clubsIn conjunction with Surf Lifesaving Illawarraand the Port Kembla Surf Club, we haveconducted a review to identify possiblecommercial opportunities at the PortKembla facility.Throughout 2005-06 we conductedextensive structural and buildingassessments on the North Beach surfclub building. The assessment identifi eda number of signifi cant building/servicesfaults, with rectifi cation estimated ataround $1 million. In the short term wehave undertaken minor work to make thebuilding safe and are working with the surfclub to identify the most viable long termoption. This may involve refurbishingor rebuilding.Wollongong Surf Leisure Resortat TowradgiCouncil has resolved to retain ownershipof the Wollongong Surf Leisure Resortat Towradgi, and is currently negotiatingwith the current lessees under the existingoption agreement.Community use of Council landOur land and building policy was reviewedas part of an overall review of Councilpolicies. No changes to the policy weredeemed necessary as procedures for thelease and licensing of Council communityland are governed largely by therequirements of Section 46 and 47 of theLocal Government Act. This act ensurestransparent and equitable processes.Managing community landsA draft plan of management for theWollongong Botanic Garden went onpublic exhibition, and is expected to bereported to Council in September 2006.A draft plan of management forJudbooley Parade Reserve, Windang hasbeen completed pending the outcomeof an Aboriginal archaeologicalassessment. The assessment isexpected to take six months and itsrecommendations will be included inthe draft plan before it is considered byCouncil for public exhibition.We commenced a review of theNorth Beach and Stuart Park plan ofmanagement as well as the City Beachplan of management. These reviewswill combine site specifi c plans with theprovisions of the Wollongong ForeshoreMaster Plan and City Centre RevitalisationStrategy when released.Outdoor restaurant policyWe adopted an outdoor restaurantpolicy in May 2002 to facilitate quality,aesthetically pleasing, safe and practicaloutdoor restaurants on public land. Whilewe are continuing to formalise occupationsin line with the policy, we did not monitorunapproved occupations during the yearbecause a compliance hold is in placewhile we formulate a new policy for retailtrading on footpaths.Integral Energy Recreation ParkIn July 2003 Council acquired theIntegral Energy property at Darkes Road,Brownsville to establish a recreation parkspanning 21 hectares. Developmentconsent for the master plan was grantedin October 2005. The plan outlines theconstruction of facilities at three sitesfor three user groups; Illawarra MotoringMuseum, Sporting Shooters Associationand Kembla Joggers. During the yeardevelopment consent was also grantedfor a motor museum. A managementcommittee of user groups and Councilrepresentatives met monthlyduring 2005-06.A new picnic shelter for the park wasincluded in the master plan and wecompleted the design and approval forthis during the year. The contract forconstruction was awarded in June 2006.The shelter will contain barbecues, akitchenette and a disabled toilet facility.Andrew Lysaght ParkredevelopmentRedevelopment of Quilkey Place andAndrew Lysaght Park commenced in May2006, and is scheduled for completionin November 2006 at a cost of $1million. Jointly funded by Council and thestate government, the project involvesconstruction of a new access road intothe WIN Entertainment Centre, provisionof 16 car park spaces and improvementsto Andrew Lysaght Park to refl ect itshistorical signifi cance as a rest park andthe city’s oldest cemetery.Chinese community cemeteryChinese community representatives havebeen requested to prepare a draft masterplan for the site and draft constitution forthe management of the cemetery. Recentdiscussions indicate this informationwill be forthcoming early in 2006-07 forCouncil consideration.Bathers Pavilion redevelopmentA development application for the NorthBeach Bathers Pavilion was referred tothe NSW Heritage Offi ce, as the pavilionis listed on the state heritage register.Approval was not forthcoming and afterextensive consultation a revised conceptwas prepared and referred to the HeritageCouncil in June 2006.We are currently awaiting determinationfrom the Heritage Council and if therevised concept is endorsed, an amendeddevelopment application will be required.As part of this proposed redevelopment adetailed design is underway for a sharedwalkway and retaining wall improvementsat North Beach.Wollongong Town Halldevelopment opportunitiesWe are considering redevelopmentoptions for the Wollongong Town Hall site,one of the most important developmentsthe city has seen and potentially a key partof the City Centre Revitalisation Strategy.The site has capacity not only to delivercontemporary concert/town hall facilitiesbut also retail, commercial andresidential services.During the year we conducted ademand analysis of the concert/town hallelement and completed an urban contextassessment. Council has also reviewedthe demand for residential developmentin the city centre. This information willsupport a range of design options andfeasibility testing to be undertakenin 2006-07.

Development of a landmarkmulti purpose tourist,restaurant and indigenouseducation facility at BulliTops has been delayedpending the issue ofdevelopment consent.Wayne Douglass checks theplans for the new GatewayTourism Complex at Bulli Tops.Commercial Development87

PROGRAM GOAL: To work with our community in providinga range of programs and services that will sustain andimprove the city's recreation, lifestyle, biodiversityand natural assets.Beaton Park Leisure Centre's widerange of recreation activities includesswimming programs for all ages.

City ParksNew landscapingand park facilitiesDuring the year, City Parks staff wereextensively involved in the implementationof the City Beach Foreshore master plan,with the installation of Stage 2 landscapeworks. Planning commenced for theupgrading and embellishment of a numberof parks including Towradgi Park; FredFinch Park, Berkeley; and North DaltonPark, Fairy Meadow. Project improvementworks included the development of newpavements and access ways, appropriatetree plantings and shade shelters andlighting.Other improvements included a car parkupgrade at Reed Park, Horsley; installationof irrigation at Thomas Gibson Park,Thirroul; and completion of a cricket pitchat Figtree Oval. Plans commenced forimprovements to McCauley Park, Thirroul;Sid Parrish Park, Figtree; KanahookaPoint; William Beach Park at Brownsville;and Nicholson Park, Woonona.We also continued to assist Council'sCommercial Projects and Property Divisionin facilitating the plans of management forJudbooley Parade, Hill 60 and StanwellPark Reserve.Providing quality playgroundfacilitiesAn independent audit report on the city'splaygrounds indicated all 147 facilitiesconform to the Australian standard. Thisachievement has been strongly supportedthrough Council's ongoing commitmentto replacing playgrounds and undertakingremedial work at existing sites.Recreation and Natural ResourcesExpenditure $22.24mRecreation$7.33mConservation andNatural Resources$3.30mCity Parks$11.60mRecreation and Natural Resourcesexpenditure vs. total Council expenditureTotal Recreation and Natural Resources expenditurewas $22.24m or 13.66% of total Council expenditure($162.82m).Playground installationsNew playgrounds were installed atHector Harvey Park, Koonawarra; andRae Crescent, Balgownie. Constructioncommenced on playgrounds in StrachanPark, Woonona; and Ray Crump Oval,Primbee; with orders placed for facilitiesin Todd Park, Unanderra; and BrownleePark, Mangerton.As a result of a survey on accessibleplaygrounds, we have been working withconsultants on designs and potentiallocations for a purpose built playgroundfor children with mobility restrictions.Design work will be fi nalised over thecoming year.Land under managementLand under Council managementincreased during the year with parklandsassociated with new estates coming online at Horsley and Haywards Bay. Wehanded back 580 hectares of natural areaat Kellys Falls, Stanwell Tops to the stategovernment to be managed through theNational Parks and Wildlife Service.Maintenance programs for parks,sporting fields and public placesCustomer survey results continue toindicate that current levels of grassmaintenance within our parks andsports fi elds meet community needsand expectations above the industrybenchmark. Areas of lower satisfactioninclude park furniture such as tables,seats and shelters, with respondents mostsatisfi ed with the provision of informationsignage.These comments will assist futurefunding submissions for the provisionof new facilities and the replacement ofexisting assets.Recreation and Natural ResourcesIncome $4.78mRecreation$2.92mConservation andNatural Resources$0.31mCity Parks OutlookWollongong’s publicparks, sportingfi elds and naturalareas are importantcommunity assetsthat must be safeand well maintained.Our priorities in thecoming year includemajor improvementsto Towradgi Park andFairy Meadow’s NorthDalton Park, a skatefacility at Helensburgh,and an accessibleplayground forchildren with mobilityrestrictions.Action requests fromthe communityThe number of action requests increasedfrom the previous year. In all, 1,629requests were received with 1,288completed, leaving 341 still to be actioned.Specifi cally on trees, we received 2,285tree action requests, a decrease of 57 forthe same period last year. Of the 2,285received, 2,121 were completed and 164were still to be actioned.City Parks$1.55mRecreation and Natural Resourcesincome vs. total Council incomeTotal Recreation and Natural Resources incomewas $4.78m or 3.03% of total Council income($157.74m).Recreation and Natural Resources Performance Against Objectives89

Russell Vale Golf CourseRussell Vale Golf Course continues toprovide facilities of a high standard. Thechallenge is to maintain this standardeven though water restrictions impacton maintenance operations. Throughfunding made available from Council'sEnvironment Fund, we installed newwater tanks and pumps to enable anexisting alternative dam to be used for theirrigation of trees and grass.While the course has experienced adecline in usage consistent with Australiangolf industry trends, the Centre forEnvironment and Recreation Management(CERM) has again confi rmed that RussellVale Golf Course had signifi cantly highervisits per metre above the average nationalbenchmark.A new fee structure led to a 10%increase in income and an improvedreturn per course round. Expenditure atthe course increased through adjustmentsto cost centre allocations and additionalstaffi ng costs associated with compliancewith water restrictions.Sports planningprocess prioritiesIn 2005-06, the Sports and FacilitiesReference Group has assessed andprioritised a number of projects such asKembla Joggers' amenities, Bulli Parkamenities and Fred Finch Park complex.Council has now supported a fi nancialcontribution towards a number of theseprojects with $150,000 committed to asports reserve fund on an annual basis.Council was also successful in attractingfunding through the Department of Sportand Recreation for lighting at UnanderraReserve and Berkeley Park; amenities atSt James Park, Coledale, and HollymountPark, Woonona; sports fi eld safety fencingthroughout the city; and major works atNorth Dalton Park.Open space and recreationfacilities strategyWe have contributed to the developmentof an open space strategy, 'PlanningPeople Places', a framework for theprovision, development and managementof open spaces and key regional facilities.The report was presented to Council andadopted in June 2006.Skate facilitiesFollowing consultation with user groups,preliminary designs were completed,funding was allocated and expressions ofinterest invited for the development of askate facility at Helensburgh.Working with Council, the successfultenderer, Redbox Design Group, hascontinued consultation with communityrepresentatives and skating professionalsto draw up designs. The project will moveto construction phase in the new fi nancialyear.We also researched locations andpotential suppliers of a mobile skatefacility.North Dalton ParkWe successfully applied for funding fromthe Department of Sport and Recreationfor major improvements to North DaltonPark at Fairy Meadow, with $200,000allocated for sportsfi eld lighting andirrigation at this key regional facility.Consultation has continued with IntegralEnergy in relation to the power supply,with a fi nal design and lodgement of adevelopment application.Towradgi ParkThrough extensive communityconsultation, we developed a landscapemaster plan for the future developmentof Towradgi Park. The master plan waslodged as a development application,and funds allocated over fi ve years for itsimplementation.$200,000 was confi rmed from Section94 developer funds for the initial stages ofthe project, including the realignment ofthe cycleway south of Towradgi Creek. Aformal priority work program is currentlybeing developed.Illawarra Canoe Club facilitiesWe continued negotiations on areplacement building for the IllawarraCanoe Club after fi re destroyed facilities inWilliam Beach Park at Brownsville.Hill 60 remedial worksWe completed Stage 1 works on pathwaysat Port Kembla's historic Hill 60, with a fullrisk assessment undertaken. Further workswill include steps to the site's control towerand battery in consultation with Council'sheritage advisers.Soccer team relocationAs part of moves to relocate theWollongong Olympic and WollongongWolves soccer teams from Brandon Park,a development application was approvedfor permanent lighting at training facilitiesat Figtree Oval. Discussions continuedwith club representatives on the proposedtiming of works.Mike Dwyer ReserveLandscape works commenced at MikeDwyer Reserve at Coledale, establishedin memory of a long-standing and highlyrespected trade union offi cial. Future workwill include installation of signage, parkfurniture and car parking.Russell Vale Golf Courseincome vs. expenditureRussell Vale Golfcourse usageLand under managementPercentage of existingplaygrounds conforming toAustralian StandardsBeach rescuesRecreation and Natural Resources90450 ($’000)400350300250341.38245.80306.79287.18352.58293.15385.10411.85408.86476.4001-0202-0303-0404-0505-0648,00046,00044,00042,00040,00046,66045,09046,40043,99042,77501-0202-0303-0404-0505-062,800 Hectares2,7002,6002,5002,4002,7062,7762,7912,84101-0202-0303-0404-05100 %9998979698989901-0202-0303-0404-0510010020038,0002,300950Income Expenditure Decline in usage is consistent withAustralian Golf Industry trends, butusage was still above the nationalLand under our control decreasedbecause a portion of escarpmentland was handed back to the stateOur playgrounds have maintained100% compliance with AustralianSafety Standards.Preventative actions andbenchmark.government.Pricing changes have contributedto steady increase in income, andoperational costs on maintenancehave increased due to dry weatherconditions and water restrictions.2,52105-0605-061,5001,2009006003004671,4061,6851,29001-0202-0303-0404-0579505-06favourable conditions resulted inthe expected 500-1,000 rescuesthis year.

An independent auditreport on the city'splaygrounds indicatedall 147 facilities conformto the Australianstandard.Zoe Kelman enjoys the facilities at oneof the city’s most popular playgrounds,Stuart Park, Wollongong.Recreation and Natural Resources91

RecreationPool attendance figuresand incomeFine weather led to an 11% increase inattendances at Council's eight outdoorpools, up from 973,997 to 1,083,004.Total pool expenditure for the year was$2,637,632, and total pool income was$348,036.Pool refurbishmentsMajor structural repair works wereundertaken at Thirroul pool, includingconcrete remediation and bracing of thepump house, crack repairs, stabilisationof the 50 metre pool and reconstructionof the toddler pool. We also completedrenovation works at Dapto pool includingupgrading of the circulation system andprovision of additional shade.Other capital works were theconstruction of a disabled toilet next toHelensburgh pool and minor repairs atCorrimal pool.Lifeguard servicesNo fatalities were recorded in patrolledareas at Council's 17 patrolled beaches,with Council lifeguards performing 795rescues - a signifi cant decrease from the1,290 performed in the 2004-05 season.A Local Area Work Agreement for beachlifeguards was signed and entered intoin September 2005. The agreementmet all expectations in its fi rst season ofoperation, and total beach expenditurefor the year was $1,800,247. Newbeach patrol and storage facilities werecompleted in June at Coalcliff beach.Surf Life Saving Illawarra and its volunteerlifesavers continued to provide a valuableservice to the community on Saturdayafternoons, Sundays and public holidays,providing an estimated total of 5,737volunteer patrol hours during the season.Leisure centresCouncil's leisure centres, Beaton Park andLakeside, continued to invest in fi tnessequipment, resulting in increased revenue.Improvements at Beaton Park included anew ultraviolet pool disinfectant system toenhance water quality, and pool blanketsto reduce energy and water costs. BeatonPark's athletics facility benefi ted fromnew high jump crash mats, and conceptdesigns were completed for an IllawarraTable Tennis multi purpose room.An exercise program designed tocombat diabetes was introduced at bothcentres in conjunction with the IllawarraDivision of General Practice and theUniversity of Wollongong. We fi nalisedrenovation plans for Lakeside, with tendersto be awarded in the next fi nancial year.Recreation OutlookOver the nexttwelve months ourpriorities will includeimprovements atBellambi and Towradgirock pools, a sharedpatrol tower at Corrimalbeach, and enhancingfacilities at Beaton Parkand Lakeside leisurecentres.Water safety initiativesThe Surf Sense water safety programcontinued at all local primary schoolsfor Years 2, 4 and 6. The program waspresented to 5,968 school students thisyear, an increase from 5,740 in 2004-05,and was also conducted for internationalstudents at the University of Wollongong.The Royal Lifesaving Society of Australia(NSW) conducted its award winning Swimand Survive learn to swim program at ouroutdoor aquatic centres. This year theprogram had 795 participants, down from905 last year.Tidal rock poolsWe continued to maintain eight tidalrock pools, carrying out 85 cleans - twoless than for the 2004-05 season. Therock pools' location within the tidal fl owsstrongly infl uences the timing of poolcleaning.We fi nalised reconstruction plans forBellambi rock pool, with work expectedto take place next fi nancial year. Planswere also fi nalised for work at Towradgirock pool. Rock pool works at the Gentspool and Clifton are on hold pending aformal licence to be issued by the NSWDepartment of Lands.Port Kembla pool inlet pipesA project to extend the inlet pipes atPort Kembla pool did not proceed afterwe received quotations well in excess ofbudget estimates.Shared patrol towerDetailed designs were completed for ashared patrol tower at Corrimal beach. Adevelopment application was approved,and work is due to take place in 2006-07.Beaton Park Leisure Centreoverall useBeaton Park Leisure Centre:Customer satisfactionBeaton Park Leisure CentreincomeLakeside Leisure CentreincomeLakeside Leisure Centre:Customer satisfactionSurf Sense participantsRecreation and Natural Resources440 (‘000)420400380360419.65415.19369,.26393.55390.6801-0202-0303-0404-0505-06340Usage consistent with recentyears with minor decline due tochanges in program provision.100 %806040200838488888701-0202-0303-0404-0505-06A sound result in line with targetand previous year’s performance.1.6 $Million1.51.41.31.21.11.371.431.411.5401-0202-0303-0404-051.6405-06The 2005-06 result demonstratesan upward trend providing stronggrowth in revenue.0.5 $Million0.40.30.20.100.290.300.310.340.3801-0202-0303-0404-0505-062005-06 results were favourableand consistent with increasedusage patterns demonstrating anupward trend in income.100 %806040200889390909401-0202-0303-0404-0505-06The excellent result in2005-06 is well above target anddemonstrates effective delivery ofquality services.15,00012,0009,0006,0003,000014,30014,54011,54001-0202-0303-0404-055,7405,96805-06Result in line with revised targetsafter the NSW Government ceasedfunding in 2004-05.92

Conservation andNatural ResourcesWollongong Botanic GardenThe botanic garden continues to be ahighly popular and well used communityfacility. Visitation for the year totalled235,278, refl ecting the strong communityaffection for this beautiful regionalattraction. During the year a permanentRanger Visitor Services position wasestablished to provide public safety,security and asset management benefi tsfor the botanic garden.We prepared a plan of managementcovering the botanic garden, Gleniffer Braeand adjacent Kooloobong Oval whichoutlined future initiatives such as a caféteahouse, restaurant, children's themedgarden and playground and furtherfacility embellishments. Landscape worksplanned for the garden's duck pond werecarried over to next fi nancial year due tothe resignation of the Botanic GardenCurator.A major project completed was a newrotunda in the rose garden. This elegantcopper roofed structure - the result ofa bequest - will be a popular venue forweddings and other ceremonies. Therotunda features a poem dedicated to theStolen Generation, along with humanitarianquotes about love and life.Gleniffer Brae Manor HouseHistoric Gleniffer Brae remains a popularvenue for functions and weddings, withextremely high levels of satisfactionrecorded by customers. The WollongongConservatorium of Music, located atGleniffer Brae, contributes to the culturallife of the city through music education,recitals and open days.Discovery centreThe discovery centre continues to providequality environmental education programsat Wollongong Botanic Garden for localschool children and adults. Outreachprograms promote the garden and the cityto audiences around the state and country.Attendance fi gures for 2005-06reached 12,580. The ongoing successof the centre is largely due to the qualityprograms developed by our employees.These are highly valued by participantsfor their innovative, unique approach toenvironmental education.Botanic garden annexesWe continued work on the embellishmentof the Mt Keira Summit Park, with anupgrade of the car park and installation ofartwork and interpretative signage.Community volunteers and contractbush regenerators continued to contributeto the restoration and maintenance ofPuckey's Estate and Korrungulla Wetland.A total of 129 volunteer hours werecontributed through the Puckey's EstateBushcare group, and $43,980 in grantfunding was spent on the site.Conservation andNatural ResourcesOutlookA plan of managementfor WollongongBotanic Garden willset the scene fornew facilities at thispopular attraction.We will continue vitalwork on bushfi re assetprotection zones andcontinue our emphasison responsibletree managementwhile involving thecommunity in ongoingbush regenerationprograms.Dominic Fraser and Emma Foley check thefinishing touches on a new rotunda in the rosegarden at Wollongong Botanic Garden.Rock pool expenditureRock pool cleansTotal pool expenditureTotal pool incomeDapto pool attendanceCorrimal pool attendance320,0001002.6 $Million360,000100,000160 (‘000)290,000260,000230,000200,000170,000253,560235,440333,43002-0303-0404-05303,00605-06Expenditure in line withprevious years, excluding injurymanagement costs.90807060508777658701-0202-0303-0404-05We demonstrated effective andresponsive service deliveryconsistent with previous years’requirements.8505-062.52.42.32.22.12.312.262.5402-0303-0404-05Expenditure in line with budgetexpectations and increasedopening times across poolnetwork.2.6405-06350,000340,000330,000320,000310,000359,840356,540335,09002-0303-0404-05348,03605-06Overall pool income consistentwith budget targets. Dapto poolincome continues to decline.80,00060,00040,00020,00048,690100,53088,58081,47079,93101-0202-0303-0404-0505-060Attendance results continuedto decline due to poor weatherin peak season and lowerrecreational swimmer numbers.1401201008060122.03149.47143.08137.03127.6401-0202-0303-0404-0505-06The past year’s attendancedemonstrates a downward trendwhich may be attributed to poorweather over the peak season.Recreation and Natural Resources93

Bushcare programThe sustainable management,conservation and restoration of ournatural areas are an ongoing challengefor the Bushcare program and ourcommunity. During the year, the 51Bushcare sites and 13 contract sitesunderwent creek and riparian landrestoration, bushland regeneration, dunerestoration and revegetation works thatrequired the planting and maintenanceof 20,892 indigenous plant species.Volunteers contributed 25,514 hoursin the 852 Bushcare events scheduledduring the year.To further support Bushcare volunteers,training workshops were conducted andcasual Bushcare offi cers deployed toassist groups as required. The BushcareChristmas party, trivia night, quarterlyforums and Possum Post newsletter remainpopular and useful channels for informationexchange and social interaction.Wollongong Greenhouse ParkWollongong Greenhouse Park wassupported through a total of 7,781volunteer hours in tree planting andmaintenance activity. During the yearCouncil confi rmed recurrent funding ofsite supervision and educational activities,and a removable shade structure wasconstructed.Tree management requestsAsset protection zone projectWe continued to implement therecommendations of the WollongongBushfi re Asset Protection Zone (APZ)study by completing the detailed designof APZs for three 'Priority 3' Council sitesat Figtree, Wombarra and Mt Kembla.Work to establish APZs has begun at twoof these sites, with work on the third tostart in July 2006. Approximately 50%of the total APZ project has now beenimplemented.Two part time bushfi re communityeducation and liaison offi cers workedwith approximately 90 residents adjoiningAPZ areas to form 11 'FiReady' fuelmanagement teams. Council supportsthese teams to undertake regularmaintenance of the APZs, and each groupmeets once a month for approximatelytwo hours.Hazard reduction worksWe carried out bushfi re fuel reductionworks at a total of six non-APZ relatedsites. The works involved a variety oftasks and generally included removal ofweed plants, reduction of some groundand elevated shrub fuels and pile burnsof dried fuel materials. The works werecompleted by a combination of Counciland contract labour.Year Approved Refused Amended Further Report2001-02 1,776 116 103 272002-03 2,221 329 262 942003-04 2,064 243 211 1052004-05 1,950 120 208 772005-06 1,965 73 161 91Tree managementThe Wollongong Tree Management Orderallows for proper assessment of theenvironmental importance and viability oftrees before they are pruned, removed ordamaged. A total of 2,290 applicationswere processed during 2005-06, withall requests serviced within ten workingdays. Of these, 1,965 (86%) wereapproved, 73 (3%) were refused, 161(7%) were amended and 91 applications(4%) required the submission of furtherreports. In all, 87 breaches of the TreeManagement Order were investigated with27 penalty infringement notices issued.Wollongong Botanic Garden Nurserydistributed 48,949 trees which contributedto the greening of the city through theGreenplan, Bushcare, 'FiReady' and citylandscape programs.Cringila place management trialWe completed a successful two yearplace management trial in the CringilaPark and Berkeley precincts. The trialresulted in many site improvements andthe establishment of partnerships withbusiness, government andnon-government sectors in collaborationwith the community. Highlights includethe number and range of stakeholdersengaged and reconnected with CringilaPark, the establishment of a popularwood fi red bread oven and the stagingof a major community celebration, theSouthside Festival. Due to the successof the trial, Council has committed toan expanded three year project whichwill extend to other southern suburbs ofWollongong.During the trial, the scope of the placemanagement role increased signifi cantlyto include projects in Port Kemblaand Berkeley including support for anindigenous initiative, the Ngaraba-aanWalking Trail, and upgrading of facilitiesat Hill 60.Recreation and Natural Resources94Discovery centreparticipants15,00014,00013,00012,00011,00010,00015,63813,46314,08915,10001-0202-0303-0404-0512,58005-06Participation levels were affectedby the cancellation of a schoolholiday program and WorldEnvironment Day activities due toinclement weather.Number of volunteercommunity Bushcaregroups504030201003942424601-0202-0303-0404-055105-06Participation in the Bushcareprogram has grown from 38groups in 2000 to 51 groups in2006 resulting in 25,514 hoursof volunteer work, to the value of$510,280.250 (‘000)200150100500Botanic garden attendance123.28132.79200.34164.5501-0202-0303-0404-05236.2805-06The 52% rise in visitation over thelast fi ve years indicates a rise inpopularity and a need to plan forfuture management of the asset.Botanic garden plantdistribution60 (‘000)5040302045.9034.8940.9801-0202-0303-0404-0548.5248.9505-0610Target levels were met forBushcare, Greenplan andLandscape projects throughoutthe city.Sand dune managementDuring the year, Council's beachmaintenance crew was moved to thenatural area management function tobetter integrate its role with our broaderconservation initiatives and programs.A challenge for the next twelve monthswill be coordinating and implementing adual sightline strategy with surf clubs andlifeguards to address risk managementconcerns.Fencing works were completed for sanddunes at East Corrimal and Bellambi,along with aerial spraying of bitou bush.

The discovery centre continues toprovide quality environmentaleducation programs at WollongongBotanic Garden for local schoolchildren and adults.The colourfulcharacters at theDiscovery Centreeducate andentertain with anotherenvironmental drama.127 Recreation Community and & Cultural Natural Services Resources95

PROGRAM GOAL: Our mission is to provide communityand cultural services and facilities that enhance ourcommunity’s quality of life.

Youth ServicesServices to young peopleWollongong Youth Services is the principalresource centre and a key stakeholderin 16 strategies identifi ed in the social/community plan relevant to young people.All 16 strategies have been implementedor completed. Wollongong Youth Servicescontinues to support and promote theneighbourhood youth work program, thedeaf and hearing impaired youth groupand the links to learning program for earlyschool leavers and those students whoare at risk of leaving school early.Youth ServicesOutlookOur programstargeting the city'syoung people willinclude planning andcoordinating YouthWeek, conductinginnovative andappealing schoolholiday activities,and building onthe growing focuson music andperformance throughthe Wollongong YouthCentre.Wollongong Youth CentreIn 2005-06, 6,661 young peopleparticipated in Wollongong Youth Service'sprograms, an increase from 4,139 in2004-05. The increase demonstrates theeffectiveness of a dedicateddrop-in worker to provide structured andunstructured activities at the centre, andrefl ects the professionalism of youth centrestaff and the innovative and diverse rangeof programs offered.Levels of satisfactionWollongong Youth Services recordeda 100% satisfaction level, on par withthe previous year. In its fi rst year, theWarrawong outreach program recorded asatisfaction level of 57%.Youth WeekIn 2005 we were the proud recipients ofa Local Government Award for the bestlocal Youth Week program. This follows anaward for the most innovative Youth Weekprogram in 2004.The 2006 Youth Week was even moresuccessful, with increased involvement bythe Youth Week committee. We provideda diverse range of programs and attracted1,953 young people, an increase of 353on last year. Activities included; a cabaretperformance, various concerts includingacoustic, hard core, punk, rock and hiphop music, a skate park trip, dramaperformances, a youth centre openday, aerosol workshops, photographyworkshops and exhibition, a youthfestival, music industry workshops, DIYworkshops, circus skills workshops andperformance, movies, art workshops andexhibitions, short fi lm festival and a youthissues board.School holiday programsA diverse range of activities was offeredduring January and April school holidayprograms, including hip hop, writing skills,drama, basketball, soap and face maskmaking, live performances and a bannerproject.The January program attracted 107young people, compared to 72 for theprevious year, while 168 attended the Aprilprogram, an increase of 71 from 2004-05.Music equipmentThe Wollongong Youth Centre offersyoung people a range of musicalequipment in a fully equipped and soundproofed music room and auditorium.Due to the popularity of music programsat the centre and the growing focus ondevelopment of music and performance,we undertook an upgrade of allequipment.Festival participationWe took part in Artstart, a crossregional project involving TAFE, IllawarraPerforming Arts Centre, and Wollongong,Shellharbour and Kiama youth services.Activities concentrated on differentperformance skills through eightthree-hour workshops, culminating in acombined showcase performance in theforecourt at Wollongong Youth Centre.The 2005 Fusion Illawarra MusicFestival involved live music events acrossthe Illawarra. As part of the festival,young people attended workshops atWollongong Youth Centre outside schoolhours to develop music skills necessary toperform on a compilation CD.Performance Against ObjectivesCommunity and Cultural ServicesExpenditure $7.02mCommunity and Cultural ServicesIncome $3.24mYouthServices$0.73mCulturalDevelopment$2.07mCommunityFacilities$1.10mAged andDisabilities Service$1.53mCommunityDevelopment$1.60mCommunity and Cultural Servicesexpenditure vs. total Council expenditureTotal Community and Cultural Services expenditurewas $7.02m or 4.31% of total Council expenditure($162.82m).YouthServices$0.15mCulturalDevelopment$0.14mCommunityFacilities$0.97mAged andDisabilities Service$1.42mCommunityDevelopment$0.57mCommunity and Cultural Servicesincome vs. total Council incomeTotal Community and Cultural Services incomewas $3.24m or 2.05% of total Council income($157.74m).Community and Cultural Services97

Growing up in the citiesWe began a joint project with theUniversity of Wollongong to introducethe UNESCO project Growing Up in theCities to Wollongong. Growing up on theSouth Coast involved research trainingfor the young people involved, linear andphotographic mapping of where youngpeople go in Wollongong, a series ofphotography workshops by renownedphoto journalist Peter Soleness and aphotographic exhibition.Early leavers programTwo early leavers courses were conductedduring the year. The fi rst enabled youngpeople to gain modules toward theirCertifi cate II in Hospitality. The second wasa mural course offered in partnership withIllawarra TAFE. Six of the enrolled studentshave gone on to full time study.At risk of leaving school earlyIn partnership with two local schoolswe again ran a student at risk programduring 2005-06. The Links to Learningproject worker instigated a 'meet andgreet' with parents and students prior tothe course commencing. This allowedinterested parents to ask questions andgain more information about the program.At the course conclusion, participantsgained a Links to Learning certifi cate. Theyoung participants took part in projects toenhance the local community and workedwith Bushcare groups.Community DevelopmentAccess and equityCultural awareness training continuesto be part of our employee inductionprogram with 59 new staff attending oneof four sessions this year. Participantsrecorded a satisfaction rate of 95% for thetraining.Language aid program andinterpreter serviceThe language aid program helps residentswho speak a language other than Englishto access our basic services. Languageaids are Council offi cers who areaccredited in their selected languages. Weoffer assistance in Italian, Greek, Turkish,Polish, German and Macedonian.Since 2003-04 we have continuedto expand a fee-for-service interpreterservice, allowing organisations to bookinterpreters for face-to-face sessionsin a variety of languages. The servicehas grown steadily with 109 interpretersessions provided this year in languagesincluding Auslan, Cantonese, Greek,Mandarin, Serbian, Turkish, Vietnamese,Hindi, Italian, Macedonian, Spanish andArabic. There are a total of 28 languagesand dialects available with 42 interpreterson the interpreter service panel.Agency partnershipsDuring the year we were involved inmany projects in partnership with otheragencies, including NSW Fire Brigade,Association of Teachers of Italian, ChineseAustralian Services Society, IllawarraMulticultural Mental Health Network,Australia Filipino Association and IllawarraFilipino Women's Group, MulticulturalDisability Advocacy Association, FamiliesCommunityDevelopmentOutlookA major project this yearwill be to implement arange of communityengagement options,put together afterextensive consultationwith the community.These options willfurther improve theway we seek theviews of our variousstakeholders. Wewill also continue tooperate a diverse rangeof programs, frominterpreter services tograffi ti management.First, Illawarra Multicultural Services, TAFE,Department of Employment and Training,Wollongong Police Local Area Command,Illawarra Ethnic Communities Council,Association of Community LanguageSchools, Drug and Alcohol MulticulturalEducation Centre, Illawarra Forum ofCulturally and Linguistically Diverseproject, Barnados, Irish Welfare Bureauand the Muslim Women's Association.Young people participatingin programs, activities andentertainmentWollongong Youth CentreDrop In attendanceNumber of volunteerinterviews conductedNumber of training hoursprovided by VolunteeringIllawarra to volunteersCommunity and Cultural Services9824,00020,00016,00012,0008,00013,98012,15913,39018,36101-0202-0303-0404-0523,42105-064,000The steady increase refl ects theprofessionalism of the YouthServices team and the innovativeand diverse range of programson offer.10,0008,0006,0004,0002,00005,6235,9505,5918,32601-0202-0303-0404-0511,53705-06There has been a signifi cantincrease in numbers over the lastthree years due to the recruitmentof a Drop In Worker.60050040030020010061841302-0303-0404-0558560305-06VI continues to outreach intothe community and plans areunderway to begin an outreachservice in Kanahooka, Koonawarraand Dapto as this has beenidentifi ed as a region of highreferral rate.22020018016014012020117722223301-0202-0303-0404-0519905-06Training hours over the last fi veyears have remained stable, andVI has addressed poor responseto some courses through a surveyto determine training needs.

Graffiti managementA number of highly successful projectshave been implemented this year as partof our graffi ti management program andGraffi ti Operational Management Pilot.In June 2006 we completed a projectthat saw 14 of our Works and Servicescaravans painted by local aerosol artists.Evaluation of the project showed iteliminated nearly all illegal graffi ti from thevans. Pad mounts in the city mall werealso painted by local artists to preventgraffi ti and were so successful Council'scity centre management has requestedextra boxes be painted in Burelli Street.In partnership with the Periodic DetentionCentre we initiated the community trailerproject involving a free 'paint out' servicefor the removal of illegal graffi ti on privatecommercial and residential property. TheRoads and Traffi c Authority (RTA) alsoextended funding to enable us to continueto paint all traffi c control boxes across thecity using bright and colourful artworksdeveloped by local community groups.Community members and Councilstaff continue to use the graffi ti reportingline, helping us record graffi ti incidents,coordinate its removal and provideresidents with prevention techniques. Thisalso involves forwarding graffi ti incidentreports to organisations such as IntegralEnergy, the RTA and State Rail for theiraction. We received 1,286 graffi ti reportsthis year, a slight increase on last year'sfi gure of 1,277.Crime preventionand community safetyCouncil's safe communities projectcontinued to focus on crime prevention,with 35 development applicationsassessed against crime preventionthrough environmental design principlesand safety audits.In addition, seven safety audits wereconducted across the city identifying anumber of strategies to reduce crime andaddress anti-social behaviour. Audits wereconducted at Lakelands Oval, Berkeleytown centre, Figtree Community Centre,Judy Masters Park, Dave Masters Park,Wollongong Youth Centre and NorthWollongong car park.Through the 2005 Safe CommunitiesCompact we developed and implementedfour crime prevention programs includingthe Port Kembla street sex worker healthproject, public behaviour in public domain,Bundaleer women's safety project andWISer- Wollongong is Safer. Throughextensive community consultation wedeveloped a draft city safety plan forimplementation next year. The planoutlines key priorities and projects foran integrated Council response to thesignifi cant issue of community safety.Northern District AboriginalCommunity ProjectThe Safe Community Action Team wasinvolved in establishment of the NorthernDistrict Aboriginal Community (NDAC)Project. NDAC aims to engage Aboriginalchildren and their families in projects andactivities at a local level. Strategies includesport and recreational activities, educationand employment focus and programs toimprove the access of Aboriginal childrenand their families to early childhoodservices in the area.Renewing Port Kembla,Warrawong and BerkeleyThe Port Kembla/Warrawong/Berkeleycommunity renewal project aimsto address social, economic andenvironmental issues identifi ed throughmajor planning activities in the southernsuburbs. This year's priorities includedcontinued infrastructure improvementssuch as Wentworth Street, Port Kembla,a cycleway improvement project along theLake Illawarra foreshore and maintenanceof parks and playgrounds.The program also includes completionof the Berkeley plan which was funded bythe NSW Premier's department. Throughthe plan we identifi ed the needs andconcerns of the Berkeley community andbegan work to address these needs. Amajor project to come from the Berkeleyplan was the community harmonybarbecue project which addressedreporting crime, developing bettercommunity relationships, and securityand safety.The renewal program also includes thePort Kembla revitalisation project, whichaims to implement strategies addressingthe social, economic and environmentalneeds of the Port Kembla community. Wehave established a range of communitypartnerships which have led to theimplementation of HIStory, a men's projectin Warrawong, a family and youth projectin Warrawong's Bundaleer estate, and afi lm and recording project in Berkeley.Community managementsupport programDuring 2005-06 the communitymanagement support program helpeda number of small community groupsthrough consultation, advocacy andassistance in recruitment and trainingmanagement committee members.Monthly meetings were held with localneighbourhood centres to facilitateinformation and resource sharing. A rangeof information sessions were also heldspecifi cally for non profi t community basedorganisations covering topics such aspublic liability, running effective meetings,understanding your constitution andinsurances. Satisfaction remains high, with85% of respondents indicating they werehappy with the information and serviceprovided. These sessions will now be heldon an annual basis.Volunteering IllawarraIn 2005-06 our volunteer resource group,Volunteering Illawarra, conducted 603volunteer interviews, an increase fromthe 585 last year. Volunteering Illawarracontinues to reach out to the communityand referral rates continue to rise. Weare currently discussing plans to operatean outreach service in the Kanahooka,Koonawarra and Dapto area as this hasbeen identifi ed as a high referral region.Changes to the Return to Work Reforms,effective 1 July 2006, will have an impacton Volunteering Illawarra as volunteerhours for people receiving Centrelinkbenefi ts have increased. To date the effectof changes is unknown.Volunteering Illawarra also providestraining for volunteers and staff membersof not for profi t organisations. In2005-06 we offered 199 hours of training,compared to 233 hours in2004-05. The slight decrease on totalhours refl ects changes in staffi ng withinthe organisation.Awareness of the corporate volunteeringprogram also grew in 2005-06 andmeetings were held with business groupsincluding the Illawarra Business Chamber,the Illawarra Small Business Club,Shellharbour Business Network, AustralianIndustry Group, Real Estate Institute ofIllawarra and the Institute of CharteredAccountants as well as individualbusinesses. The program is now used asa referral source for businesses wishingto provide pro bono work for non profi torganisations and we currently have 25volunteer job opportunities on fi le.Child careOur Children and Family Services staffwere called on to comment on three childcare centre development applicationsthis year, an increase of fi ve on 2005-06due to increased media coverage onthe availability of child care places. Themost substantial increase occurred in thepre-lodgement phase of child care centredevelopment.More than 50 calls were receivedrelating to the need for child care places,compared to 22 calls in 2004-05. Wecontinue to provide a range of informationto parents, community members anddevelopers on child care needs in the localarea. Information includes supply anddemand for services and details on theprovision of quality child care.Community and Cultural Services99

Volunteering Illawarracontinues to reach out tothe community and referralrates continue to rise.Volunteering Illawarra's George Keeling andVimala Colless finalise the volunteer schedulefor Seniors Day Care in Wollongong.

Social planningOur social planning team became involvedin four organisational activities and projectsthis year including the Dapto town centrerevitalisation study, Wollongong Planning,People, Places - a Strategic Frameworkfor Open Space, Recreation Facilities andCommunity Facilities, the draft City CentreRevitalisation Strategy and a submissionon Wollongong LEP 1990 - a rezoningrequest of former Bulli Colliery. The teamalso made three external contributions tothe Fit for the Future NSW Health FuturePlanning Project, the Increasing CoastalCouncils Capacity to Manage NaturalResource Base - Discussion Paper andTelstra's proposal to remove a number ofpay phones from various locations in thelocal government area.We also continued to respond tosocial data information and supportrequests with a total of 70 responsesprovided this year to eight internal and62 external customers. This decreasedfrom 84 requests last year. The declinewas anticipated because census datahas been in circulation for fi ve years anddemographic profi les are now available onCouncil's website and branch libraries.During the year the team also completeda number of planning documents suchas the 2005 social data research projectand planning documents for the suburbof Berkeley including the Berkeley plan, abusiness retention and expansion plan andaccess and mobility plan. We received anoverall satisfaction rate of 88% in our recentcustomer satisfaction survey, compared toa 75% satisfaction result last year.Community engagementservicesThis year Council designed andimplemented an innovative communityengagement framework which includesa policy, principles, standards, protocolsand a range of products to improve ourconsultation practices.Establishment of this framework hasled to development of a communityengagement options report and draftnotifi cation policies for Council'sWorks and Services; and DevelopmentAssessment and Compliance divisions.Community engagement services havebeen delivered on a total of 22 projectsthis year, with a highlight being the deliveryof an engagement project to inform thedevelopment of the Towradgi Park masterplan. A customer satisfaction survey hasbeen developed for all future communityengagement projects and a customersatisfaction measure has been set at aminimum of 75%.Social community planDevelopment of Council's social planoccurred in March 2004 and again inJuly 2005 as part of our social dataresearch project. The project involvedcomprehensive consultation with thecommunity, including surveys or directengagement with approximately 4,000people. The information collected willbe used in preparation for the nextsocial plan, which will be amendedand presented to Council in late 2006.Strategies for the plan have been preparedand consultations with key stakeholderson these strategies will continue into thenew fi nancial year.NAIDOC WeekNAIDOC Week took place in July 2006with 14 activities and events held acrossthe city. We continue to provide smallgrants to local groups for locally-runevents including football, gravitationalgames, a golf day, men's bowling day,family fun days and children's activities.Reconciliation WeekReconciliation Week is an annual eventproviding an opportunity for Indigenousand non-Indigenous people to cometogether to explore and celebrate waysof moving forward as a community. Thefocus of this year's Reconciliation Weekwas a gathering at Wollongong Town Hallto discuss treaties as a reconciliation tool.Refugee WeekCouncil has made a commitment towelcome refugees to the area. Todemonstrate this commitment, weworked with local government and nongovernment agencies throughout the yearto coordinate a calendar of events duringRefugee Week. A refugee awarenesstraining session was held, attended by 11workers from various organisations.We also developed civic orientationmaps with input from multicultural servicesand residents from diverse backgrounds.The maps provide new residents withinformation about the various levels ofgovernment and the location of keyservices. The brochure was completedand distributed in seven languages.Children's WeekThis year we celebrated Children's Weekover the year as opposed to a stand-aloneevent. Children were celebrated in ourcommunity through a variety of events andfunctions including Purple Ribbon Month,school starters picnic, grandparents'picnic, 'big school' expos and training forstaff on protective behaviours. The schoolstarters picnic attracted over 200 carersand children to MacCabe Park.The Purple Ribbon Month campaigntook place in July 2005 and includedthe Lady Mayoress' Morning Tea, aworkshop for professionals, a range ofshopping centre information stalls anddistribution of purple ribbons. Once againwe partnered with Adult Survivors of ChildAbuse to deliver art workshops and an artexhibition. Additional work was undertakenthis year to expand our partnerships andincorporate Purple Ribbon Month intothe National Child Protection Campaign.A formal partnership was signed withthe National Association for Proventionof Child Abuse and Neglect (NAPCAN)foundation to raise the profi le of childprotection in the community.Community Harmony DayCommunity Harmony Day events for2006 were held in the Crown St Malland involved information displays andactivities sponsored by the Illawarra EthnicCommunities Council, Illawarra MigrantServices, NSW Fire Brigade, WollongongPolice, Bulli PCYC, Wollongong PrimarySchool, Wollongong High School andWadi Wadi Mixed Tribe. Approximately730 attended.Grandparents' GroupThe grandparents' group is a joint projectwith South East Illawarra Area HealthService, and receives funding fromthe Illawarra Area Assistance Scheme.Research shows that grandparents areplaying an increasing role in the care ofchildren in our community. This projectallows agencies to respond to the needsand issues faced by grandparents,including the need for information,opportunities to meet with others withsimilar experiences and greater accessto services. This is a three year fundedproject, and is in its second year.Activities included the grandparents'picnic, a grandparents' expo, aninformation day for grandparents ofadolescents and teenagers, an informationsession for Macedonian grandparents andstory times for grandparents and childrenat branch libraries.Community and Cultural Services101

Aged andDisabilities ServicesProviding informationInformation and skills developmentcontinued to be the core focus for ourAged and Disability Services team. Thiswas achieved through disability awarenesstraining, provided to all Council employeesas part of their induction program. Elevensessions were held this year with 85% ofparticipants rating the course extremelyeffective.We also played an important role inproviding information and advocacy toolder people, people with disabilitiesand their carers. This year we receivedmore than 440 requests for information,disseminated 2,075 directories anddistributed 8,000 Seniors Week booklets.Of the 440 requests for information,268 were from agencies and 178 fromindividuals in the community.Respite servicesOur Respite Services team continuesto provide in-home and centre basedservices to the community. These servicessupport carers of frail older people, peoplewith dementia and people with disabilities.Respite is offered through volunteers, paidstaff and group settings. The Twilight Toursprogram is a successful form of respite forcarers of people who have dementia andare 'sundowning'. This program now hastwo buses per week, one in the northernsuburbs and one in the south.Illawarra dementia respite service,in-home respite service, respite andrelaxation for carers and respite optionsall operated at or above 80% capacityduring 2005-06. Out of home respite andday respite services operated at 100%capacity and experienced waiting lists.We currently run six funded day programsand have received funding to commence anew program next year.Neighbour Aid andRetirement OptionsThroughout the year our ongoing socialsupport through programs such asNeighbour Aid and Retirement Optionscontinued to operate at capacity. With anongoing incidence of lonely or isolatedpeople living in the community theseprograms are valuable in helping thosewho might otherwise not have contactwith their community.Neighbour Aid provided 2,444 hoursof social support to isolated frail olderpeople and people with a disability livingindependently in the community. This wasan increase of 210 hours. The 'Up TheGarden Path' program provided 261 hoursof service, compared with 249 in 2004-05.The Retirement Options programprovides social support to older peoplewith a disability retiring from a supportedwork environment. The program helpsclients access mainstream recreationalservices in the community and assiststhem in maintaining social contact inretirement. Evaluation showed a signifi cantrise in service hours from 673 in 2004-05to 2,320 this year.Community transport servicesCommunity transport services provide awide range of transport options and operateat above 80% capacity. In 2005-06 weprovided 56,905 passenger trips at 86%capacity. This was an increase from theprevious year but slightly less than 2003-04.In December 2005 we employed anAboriginal and Torres Strait Islander(ATSI) Transport Offi cer, facilitatingthe development of the ATSI regionalcommunity transport model. The modelwas established through extensiveAged andDisabilitiesServices OutlookDuring the year wewill continue to meetthe challenges ofgrowing demandfor our respiteservices, anddeliver many otherprojects including abusy Seniors Weekprogram and acommunity transportservice.community consultation and continues tobe reviewed to ensure it is delivered in aculturally appropriate manner. There arecurrently 39 registered ATSI clients whomeet the criteria of the project and wehave provided over 300 trips.The respite services team enjoy a well deservedlunch break. The service provides support forcarers of frail older people, people with dementiaand people with disabilities.Community and Cultural Services102

CommunityFacilities OutlookOver the comingyear we will focuson the developmentof the new ThirroulDistrict CommunityCentre and Library,manage ongoingimprovements at theDapto RibbonwoodCentre, and overseethe functioning of arange of multi purposecommunity facilities.Seniors WeekSeniors Week is a signifi cant eventfor older people across the city withthis year's event held later than usualbecause of the Commonwealth Games.2006 was the 20th anniversary of SeniorsWeek and included the traditional joyfl ights run by the South Coast AerialPatrol along with almost 50 events acrossnine days of celebration.We disseminated 8,000 booklets as wellas a Seniors Week kit to raise awarenessof older people and their contribution inour community. An evaluation of SeniorsWeek 2006 indicated 75% of eventholders, participants and committeemembers expressed their satisfactionwith the event.Council volunteers Fred Hassen and Sue Fisherhelp seniors off the community transport bus asthey arrive for a weekly shopping trip.International Day of AbilitiesThis year we held a high profi le launchof the International Day of Abilities anddeveloped an Illawarra regional calendarof events through a joint project withlocal councils, Centacare, Greenacres,Interchange, the Disability Trust and anIllawarra ITEC work for the dole project.We held over 17 events and receivedsubstantial media coverage. Almost1,800 calendars were distributed and theproject's objective to unite communityorganisations, people with disabilities,businesses, governments and the widercommunity, was achieved.Community FacilitiesMulti purposecommunity facilitiesMulti purpose community facilities includecommunity/neighbourhood centres,senior citizen's centres, youth centresand halls. Council manages these facilitiesby licensing them to community groups.During the year, two facilities previouslymanaged by Council were returned tocommunity groups for management anduse, and one was transferred back toCouncil for direct management. We willseek to licence this centre to a communitygroup early next fi nancial year.In 2005-06 we introduced externalcleaning services, a new electronic bookingsystem and new security contracts. Wealso conducted site visits to all 57 facilities,a program which will be continued toidentify major maintenance issues andimprove services for the community.2,5002,0001,5001,0005000Total home respite care2,5582,1411,99701-0202-0303-0404-051,5631,62705-06This year saw an increase in thenumber of total home respitecare hours.10,000 Hours8,0006,0004,0002,0000Total respite services4,7316,8369,6639,2749,21301-0202-0303-0404-0505-06Figures are shown for all clienthours for the respite serviceincluding Illawarra DementiaRespite Service, In-Home Respite,Respite for Carers, Out of homeRespite and Emergency Respiteservices.2,500 Hours2,0001,5001,0005000Neighbour Aid service8611,65202-0303-0404-052,2342,44405-06Neighbour Aid service providessocial support to isolated frailolder people and people with adisability living independently inthe community.Community Transport Projectannual passenger trips56,00052,00048,00044,00040,00036,00051.50046.98056.96055.68056.90501-0202-0303-0404-0505-06The number of annual tripsdepends on the demand forservice and the availability ofresources. This year’s fi guresrefl ect the increased access toservices by eligible clients fromthe Indigenous community.Risk management strategiesCouncil implemented a new 'Get SmartStay Safe' policy which was displayed anddistributed to all staff. Staff developmentfocused on a new incident reportingprocess, implementation of an electronicregister of chemicals, and maintenanceof control in an emergency. Throughregular work site inspections a rangeof safety initiatives were implementedincluding installation of a duress alarmat one community centre and securitymonitoring cameras at another. The needfor individual site management plans willbe reviewed next year in light of the newsafety policy.Community and Cultural Services103

Dapto Ribbonwood CentreOur premier southern suburbs multipurpose facility, Dapto RibbonwoodCentre, took 5,000 bookings and regularhirers increased. 163,586 people attendedactivities within hired areas and a further122,446 visitors attended the libraryand child care centre. Two murals wereinstalled on the external walls of thebuilding and many improvements weremade in direct response to feedback fromvisitors. As the centre ages, greater effortsare being directed towards maintainingthe building and grounds to ensure anongoing high standard to refl ect theincreasing number of visitors.A major electrical upgrade allowed usto install improved lighting in KurrajongHall and Laurel Room at the RibbonwoodCentre. Security cameras and screenswere installed around the buildingto improve safety and security. Wepurchased additional equipment such asoutdoor furniture for the courtyards, radiomicrophones and storage cupboards.External signage was erected to assistin identifying the centre and EFTPOSfacilities were set up. Positive feedback wasreceived throughout the year from satisfi edcustomers and staff were praised during arecent successful WorkCover audit.Thirroul District CommunityCentre and LibraryConstruction of the new centre in Thirroulmoved forward this year as we lodgedthe development application and receivedconditional consent. We continued toseek input from the local communitythrough an extended exhibition periodand feedback was assessed andincorporated in the design.Following development approvalwe commenced work on the detailedconstruction drawings and expressionsof interest were received from companieswishing to tender for the construction,along with artists wishing to design thepublic art works featuring in the newcentre. With much of the preparatorywork completed, we are proceeding totender early in the new fi nancial year withconstruction set to commence prior toDecember 2006. It's expected the newcentre will be operational before Christmas2007.Balgownie Village communitycentre redevelopmentCouncil resolved to sell the formerBalgownie Seniors Hall with proceedsdirected towards redevelopment of theBalgownie Village Community Centre and$50,000 to the Wollongong City BrassBand. Late last year we received approvalto reclassify the land and the facility wassold in March 2006.A development application for the worksat the Balgownie Village CommunityCentre was lodged and approvedand work commenced on detailedconstruction drawings. The project willbe ready for tender by October this year.The redevelopment will provide newtoilet facilities, access for people with adisability and minor works to improvethe functionality and presentation of thefacility. Works will be completed in the nextfi nancial year.Berkeley community facilitiesA decision was made during the year notto proceed with the Berkeley communityfacilities upgrade. Alternatively we will seeka longer term and more holistic approachto the community, recreation and libraryfacilities in the southern suburbs. This willbe done next year through development ofa strategic plan for facilities from Berkeleyto Port Kembla and south to Windang.Cultural DevelopmentCultural plan strategiesThe cultural plan is a document to helpCouncil identify and prioritise a range ofstrategies to develop Wollongong as a Cityof Innovation and deliver a vibrant culturallife for residents and visitors.Fifty one key strategies were identifi ed inthe cultural plan and our Cultural Servicesteam was identifi ed as the facilitator of 34of these strategies. Activities undertakenthis year included evaluation of thecultural plan, public art and placemakingprojects, the small grants program and themuseums development program.New cultural planOver the past year 91 communitymembers were engaged throughworkshops to develop a new cultural plan.We also held six suburb based mappingworkshops, three target group sessionsand two sector based workshops.Workshop participants' satisfaction withthe process was rated at greater than70%. Data collected from the 2005social data research project was alsoincorporated into the draft documentwhich will be placed on public exhibitionand launched at the end of 2006.Total users ofcommunity centresAverage number of visitorsper community centreTotal number ofcommunity centresDapto Ribbonwood Centre:Number of visitorsDapto Ribbonwood Centre:Optimum hours of use650 (‘000)20,00033200 (‘000)100 %Community and Cultural Services600550500450400570.52641.94621.09643.08629.0701-0202-0303-0404-0505-06This year's result is a slightdecrease from the previous year,although overall the number ofvisitors has remained steady overthe past few years.19,00018,00017,00016,00015,00017,28820,06119,40920,09619,65801-0202-0303-0404-05This data shows the averagenumber of visitors per centreto Council’s multi purposecommunity facilities each year.05-0632313029333232323201-0202-0303-0404-0505-0628Council’s 32 community centres,including senior citizens’ centres,youth centres and halls, all havemeeting rooms and other facilitiesavailable for hire.1601208040041,049100,820107,91101-0202-0303-0404-05More people are utilising thecentre each year, due to theeffective management andmarketing of the centre.145,569163,58605-06806040200(six months only)4851587001-0202-0303-0404-057705-06The data shows an increase in thehours of utilisation of the centre,indicating an increase in thenumber of community activitiesheld within the facility.104

CulturalDevelopmentOutlookThis year's focus ison the developmentof a new citywidecultural plan, furtherexpansion of ourmuseum programand activities topromote Wollongongas a vibrant centre ofculture.Students from Dapto High School joinCommunity Service’s Jane Todoroski to painta traffic box on a busy corner in Dapto for theRTArt project.Public art andplace making projectsWe called for expressions of interest forart work to be incorporated in the Thirrouldistrict community centre and library, andproduced a short list of local artists tocomplete dry creek bed and stormwatergrates, two seats and a privacy wall,internal and external tiles and carvedtotems. This year we also developed theThirroul streetscape project which involvedmanufacture of mosaic rounds as footpathinstallations, located near the communitycentre site.Fifteen of 18 commissioned mosaicswere completed in Wentworth Street,Port Kembla, and a large mural facingthe northern car park of the DaptoRibbonwood Centre was also completed.Due to occupational health and safetyissues, a ceramic art work proposed for MtKeira lookout has been reviewed and theartwork will be resubmitted in August 2006.Small grants programThrough the small grants program weseek to enrich the city with diverse culturalactivities and support local initiatives thatencourage innovative approaches to artform, showcase the quality and diversityof arts in Wollongong, increase communityparticipation in the city's cultural life andendorse Wollongong as an exciting,contemporary and cosmopolitan city thatvalues the culture of its traditional ownersand the many other people who havesettled here.In 2005-06 we received 63 small grantsubmissions and distributed $30,000 to18 successful projects.Museum development programThis year we established a museumdevelopment offi cer position to focus onmuseum research and review currentprocess and practice. The positionprovided extra support to 14 localmuseums and helped address issuesof funding, insurance and volunteers.Plans are now underway for several localmuseums to get involved in the MG NSWStandards Program, which will assistin their professional development andimprove strategic planning.The museum development offi cercollaborated with Wollongong City Libraryin a free history week public workshop andis already helping to improve our regionalimage and the identity of museums,galleries and keeping places.Viva La GongThe city's annual festival of arts, cultureand innovation is now in its sixth year. Vivala Gong is an eight day festival of music,fi lm, circus, art, dance, theatre, craft,food and family fun. This year's highlightsincluded the opening night fi lm and jazzfestival, Film Illawarra screenings, Musicozband performances, the Riot Acts cabaret,family fi esta and performances by one ofAustralia's best jazz singers in a free lateafternoon concert at Stuart Park.Council arts andbusiness programOur participation in the AbaF CouncilArts and Business program helpedfacilitate stronger partnerships betweenlocal businesses and arts organisationsin Wollongong. This provided improvedfi nancial support, allowing us to holdtraining for arts workers in the business ofarts partnerships. The loss of a worker forthis project resulted in reduced support forthe program.Community and Cultural Services105

PROGRAM GOAL: To provide quality public libraryservices, programs and resources to best meetthe recreational, informational, educationaland cultural needs of our community.Volunteer Tom Penrose selects abook to deliver as part of the CityLibrary's home service program.

Library ServicesUtilisation of the library collectionThe aim of the library service is to ensurethat its collection of books, magazines andaudio visual materials is used to maximumcapacity by the Wollongong community,and is promoted to the wider community.Total loans for the year show a similarpattern to the previous year and havebeen adversely affected by new measuringmethodology. However, website visitshave increased dramatically, heralding thefuture trend in remote visits to our libraryservices.Staff and service chartersStaff and service charters have beenimplemented across all branches. Thecharters describe our commitment toproviding a courteous, professionaland quality service in a friendly, safeenvironment for all members of our diversecommunity. Success continues to bemonitored and borrower feedback atservice points continues to be positive.Thirroul district library projectWe continued planning for the newThirroul District Library and CommunityCentre, with presentation of the fi nal planto a public meeting, lodgement of thedevelopment application in August 2005,and approval after minor amendments inMay 2006.Artists were selected through anexpressions of interest process and invitedto develop and present detailed proposalsfor artwork in the facility. We commencedrecruitment of a Thirroul district librarian,and work on developing the library'scollections will begin early in the newfi nancial year.Work continues on the fi nal design of thefurniture and internal layout of the library,which will be cabled for technology suchas public access catalogues, and PCs forinternet, email and word processing use.Customers will be able to process theirloans through self service technology.Tender documentation for construction isbeing fi nalised, with construction expectedto be completed by September 2007.Library ServicesOutlookA key project for thecity is developmentof the ThirroulDistrict Library andCommunity Centre,due for completionin September 2007.We will also forgeahead with a majorrefurbishment of ourcentral library andcontinue to developour wide range oflibrary services.Helping our readersDuring the year librarians attended trainingto help them deliver improved reader'sadvice to library customers. Staff havenow put the training into practice, settingup a roving position to take a moreproactive approach to advising customers.Reader's advice resources have beendeveloped and are prominently displayedat each service point, and the library hasreceived positive customer feedback.Investigations for relocatingHelensburgh and UnanderralibrariesThe library has actively pursued a policyof rationalising small branch librariesand creating district libraries which offerimproved services and resources. Districtlibraries have been established at Dapto,Warrawong and Corrimal, with Thirroul'sdistrict library soon to be constructed.Under a long term strategy, we proposethat district libraries be established atHelensburgh and Unanderra if suitablelocations can be identifi ed. An audit ofservices, resources and facilities at bothlibraries is planned for next year, andwe are working with Council's PropertyDivision on identifying potential sites.Mobile library serviceWe are in the process of replacingour two mobile library buses withone new Disability Discrimination Act(DAA) compliant, accessible vehicle.The DAA access design is based on amanufacturer's standard low fl oor buschassis.An issue has arisen relating to busclassifi cation because of the specialrequirements of a mobile library bus andregulations about axle weight capacity.Council has written to the Roads andTraffi c Authority requesting a change inclassifi cation and consideration of theimpact of the Disability Discrimination Act.In the interim, we are proceeding with aspecifi cation using an articulated vehicle.Performance Against ObjectivesLibrary ServicesExpenditure $6.12mLibrary ServicesIncome $0.75mLibrary$6.12mLibrary$0.75mLibrary Services expenditurevs. total Council expenditureTotal Library Services expenditure was $6.12mor 3.76% of total Council expenditure ($162.82m).Library Services incomevs. total Council incomeTotal Library Services income was $0.75mor 0.01% of total Council income ($157.74m).Library Services107

Programs for youth and childrenThe library's fi ve year plan of managementfor services for children and youngpeople identifi es six key areas;collections, services and activities, libraryenvironments, technology and communityrelations. The plan continues to beimplemented within resource limitationsand will be reviewed in late 2006.In January we held a specialised programfor youth, with activities including a fi lmmaking workshop, with a soundtrackprovided by a local youth band.Summer reading clubrevitalisationWe made some changes to our summerreading club to ensure the programremains fresh and interesting for children.Children were encouraged to visit thelibrary each week and participate inregular activities, with a focus on readingthroughout the holidays rather than on thenumber of books read.Customer surveyA collection satisfaction survey wasconducted in November 2005 to gainfeedback about our fi ction collections.Eight hundred surveys were distributed atall library service points, with a return rateof 75%. We also held two focus groups.The survey results will help us arrangefi ction stock when our central library isrenovated in 2006-07.Central library improvementsWe moved ahead with plans to revitaliseour central library, with the appointment ofan architectural fi rm, Brewster Hjorth, andseveral engineering consultants to developfi nal plans and internal fi tout options.Stage 1 of the project involved therelocation of the music and local studiessections and upgrading of furnishings andequipment. Work on the main revitalisationwill take place in 2006-07.Library management systemA major achievement during the year wasthe successful implementation of a newlibrary management system, Spydus,which will have long term benefi ts forcustomers and staff. Spydus is a webcentricintegrated system with an awardwinning search and retrieval engine whichmakes it possible for the library to deliverthe best quality service to its customers inthe most convenient way.Key features of the system include all ofthe regular library services from circulationto cataloguing to enquiry, enriched contentwhich provides cover images and contentinformation for items in the collection, acurrent awareness module which enablescustomers to set up a profi le and beemailed when new material matching theirprofi le is added to the collection, and akids' catalogue aimed at younger users.Customers are able to access many libraryservices through the online public accesscatalogue which has an easy to use webbased interface.Radio frequency identificationtechnologyRFID is an identifi cation and securitytechnology which has many benefi ts whenintegrated into the library system andprocesses. During 2005-06, the libraryinvestigated the benefi ts of applying thistechnology to our operations.The identifi ed benefi ts are: improvedsecurity, increased customerindependence through self-checking,reduced repetitive strain injuries to staffthrough less repetitive movement, moreeffi cient inventory control, and reducedcirculation duties for staff. Other optionsinvestigated, such as expanded use ofthe existing electromagnetic securitysystem, did not demonstrate the samelevel of benefi t.Council has approved a proposal toimplement RFID technology in the libraryand funded a three-year project. Followinga tender process, the project will beginin 2006 at Wollongong and Corrimallibraries, followed by conversion at Dapto,Warrawong and Thirroul in 2007-08 andthe remaining branches in 2008-09.RFID will improve the effi ciency of libraryoperations and free staff to provide othervalue-added services.Internet usageThe library's website continues to be avital service, providing remote accessto many resources such as the Illawarraimages collection, databases, local areainformation, and WebLinks - a select list ofquality information websites. The websitealso offers services through its remotecatalogue where customers can renewloans, place reservations and conductother library business.New library materials processingIt is important to process new librarymaterials effi ciently to ensure up-to-datematerial is available to our customers asquickly as possible. During the year thelibrary acquired over 51,000 new itemsincluding more than 33,500 books, CDs,DVDs and other audio visual material and17,500 serial issues. The whole budgetfor new books was spent. As staff wereadjusting to the implementation of thenew library management system duringthis period, this is considered a verygood result.Trend in children and youthprograms attendanceNew items added tocollectionInternet bookingsInter-library loansLibrary membershipAverage loans per capita(including literacy andcommunity languages)Library Services13,00012,00011,00010,0009,00010,95513,51510,39902-0303-0404-0511,90705-068,000Attendance shows growingcommunity interest in children andyouth services programs.50,00040,00030,00020,00010,000044,08440,01850,56049,26051,00001-0202-0303-0404-0505-06The number of new items addedto the collection has remainedrelatively consistent over the pastthree years.70,00060,00050,00040,00030,00020,00051,16760,29002-0303-0404-0573,42878,31505-06The number of bookings forInternet PCs continues an upwardtrend.1,7001,6001,5001,4001,3001,2001,7491,62802-0303-0404-051,4771,46105-06Inter-Library loans traffi c remainssteady.80,00075,00070,00065,00060,00055,00081,24277,89981,75671,99501-0202-0303-0404-0582,00005-06Library membership has regainedprevious highs.1.00.80.60.40.200.670.650.650.650.6601-0202-0303-0404-0505-06Loans remain stable.108

A group of children enjoy story timeat the City Library's popular Born toRead session.Library Services109

Library ServicesReference andinformation servicesAnswering reference and informationenquiries is an integral part of libraryservices. Apart from quantifying thenumber of enquiries answered, we alsomeasure our response time in accordancewith the State Library of NSW guidelines.The data indicates we achieved an 89%success rate for information providedin a 24-hour period, a very creditableperformance in this key activity.The volume of reference enquiriesvaries each year and growing use of theinternet by customers continues to affectthis activity. A number of promotionalactivities were undertaken during theyear to increase awareness and usage ofreference and information services in bothcentral and district libraries.Internet trainingInternet training is being provided by thecentral reference library on a weekly basis.Three levels of training are provided: basic,intermediate and advanced searching.A total of 215 people attended trainingduring the year.History Week 2005and Heritage Festival 2006These national festivals gave us theopportunity to promote the local studiescollection and services. During HistoryWeek 2005 we used displays andseminars to highlight key aspects of thecollection, including a major display atWollongong library. We also conducted aseminar at Corrimal library on the themeTreasures @ your library, and a workshopat Wollongong library entitled 'Aprons Ihave worn'.In April 2006 we ran a seminar todemonstrate the breadth and value of ourfamily history collection to celebrate theHeritage Festival.Trend in attendance atadult programs2,5002,0001,5001,00050004795911,31802-0303-0404-051,766Attendances show growingcommunity interest in outreachprograms.05-06Number of referenceenquiries150 (‘000)140130120110145.35144.71154.17151.2201-0202-0303-0404-05134.2105-06100A streamlined method of datacollection has been implementedand provides more accurate data.Law WeekLaw and Seniors Week were celebratedas joint events in 2006. Four seminarson the topic 'Planning to Live Life: Wills,Estates, and Enduring Guardianship' werepresented by members of the Law Society.The seminars were very well received withpositive feedback from attendees. Anotherworkshop entitled 'Where can I fi ndfree legal help?' was conducted by theIllawarra Legal Centre at Dapto library.All seminars were conducted inpartnership with the Illawarra LawWeek Planning Committee and wereaccompanied by displays promoting thelibrary's law collections and informationservices.@ your library campaignWe continued to participate in a statewide promotional campaign designed toincrease community awareness of publiclibraries as vibrant up-to-date publicspaces. The campaign featured seventhemes throughout 2005-06 including'Statistics @ your library', sponsored bythe Australian Bureau of Statistics, and'Linking people with ideas @ your library',sponsored by ALIA. Book journals andwrist bands were added to the @ yourlibrary merchandise this year.Cinema advertisingA major promotional focus of 2005-06was advertising at Wollongong GreaterUnion cinemas. The advertisementfeatured the library's newer collectionsand services and targeted communitymembers aged 14 to 40. A new cinemaad will appear in 2006-07 as part of thelibrary's re-branding project.Number of days takento process anitem vs set target50 Days403020102340113023182425482501-0202-0303-0404-0505-060Actual Days Target DaysThe increased number of daysto process items was due to theimplementation of the new LibraryManagement System.WAVE FM $1,000 MinuteWe continued a partnership arrangementwith radio station Wave FM to supply tentrivia questions per weekday for a popularcompetition. In return, Wave FM promotedlibrary services, facilities, collections andevents. This project, which ended in May2006, resulted in increased communityawareness of the library's services and aMarketing Award for Public Libraries withpopulations greater than 100,000.Book discussion groupsIn December the central libraryestablished an additional book discussiongroup, bringing its total to three. Corrimallibrary currently hosts three groups,and Dapto one group. Each group isfacilitated by a library staff memberwho advises on book choice, providesbackground information on authors andtheir works, and general informationabout the library. Feedback from thesegroups continues to be very positive.Displays and exhibitionsA signifi cant number of displays andexhibitions were held at all library servicepoints during the year. The Miles Franklintravelling exhibition from the MitchellLibrary featured at the central andCorrimal libraries and attracted positivemedia coverage and increased loansof Miles Franklin's works. The centrallibrary also hosted a very successful MilesFranklin luncheon with Mitchell Librarycurator, Paul Brunton.The central library held four 'New Books@ your library' programs in the libraryexhibition space, and also conducted aseries of subject-related displays such as'Just Ask', 'Members', 'Statistics', and'Holiday Fun'. We also presented ongoingdisplays from our non fi ction collection, ontopics including Soccer, Nicole Kidmanand the Tour de France.The central library display cabinets havebeen booked by a variety of communitygroups, with displays including theEmbroiderers Guild, Handweaversand Spinners, and Respite Services -Volunteers Week.Storytime in the StreetsA weekly storytime program introducedat the Bundaleer Housing Estate atWarrawong was extended and re-namedStorytime in the Streets. The program nowalso includes the Berkeley area.110

Librarian Theresa Fiorio helps a librarymember find a reference book using thenew Spydus search engine.Library Services111

PROGRAM GOAL: The protectionof the environment, its enhancementand the promotion of environmentalsustainability.Removing weeds and exotic plants fromMcCauleys Beach, Bulli, as part of anEstuary Management Plan for Hewittsand Tramway Creek.Date: 25-08-2006, Where: Stuart Park PlaygroundWhat: Kid Playing, Who: Zoe

Environment FundWollongong has a variety of naturalfeatures such as the IllawarraEscarpment, an extensive coastline withprominent headlands and beaches,numerous waterways and a high diversityof plants and animals, including manythreatened species and ecologicalcommunities. Human activity and naturaldisasters, such as bushfi res and fl ooding,have resulted in a number of long termenvironmental challenges.As a response to the environmentalchallenges facing Wollongong, Councilhas laid the foundations for a sustainablefuture by establishing an EnvironmentFund of $1 million per year, for a period offi ve years (2003-08). The fund has enabledus to implement a range of programsto repair the damage of the past, andcontinue to improve current practicesto achieve a sustainable environment.In 2005-06 we allocated $1,489,040 toEnvironment Management Plan projectsunder the Environment Fund.Environment Management PlanWe have developed a four yearEnvironment Management Plan (EMP) toprovide a clear direction in the selectionand management of Environment Fundprojects. By taking an integrated approachto environmental management we believewe will achieve better results than viewingprojects as individual entities.Projects are selected for inclusion in theEMP based on various Council plans andpolicies. These include fl ood managementstudies, bushfi re management plans,stormwater management plans,community land and natural areasmanagement plans, the Bushcareprogram and the Illawarra EscarpmentStrategic Management Plan.Environmental Management ProgramExpenditure $0.46mEnvironment Fund$0.46mEnvironmental Management Programexpenditure vs. total Council expenditureTotal Environmental Management Programexpenditure was $0.46m or 0.28% of totalCouncil expenditure ($162.82m).The EMP recognises that while theEnvironment Fund will not in itselfachieve environmental sustainability forWollongong, it will provide the basisfor the realisation of environmentalprotection and enhancement works,and lead to behavioural changes in thecommunity for the long term benefi t ofthe environment. Principal targets of theEMP are community involvement througheducational initiatives, and a communitygrants program.The Environment Fund and the EMPwere developed by securing partnershipswith the community through educationand positive environmental outcomesthrough 'on ground' works. The EMPis not only concerned with shortterm decisions, it is about developingan understanding of sustainableenvironmental management and takingsteps towards long term goals.We have identifi ed critical projects for theconservation, restoration and preservationof our local environment and will continueto seek grant funding from state andfederal agencies, while empowering thecommunity to simultaneously attractenvironmental grants for communityprojects.Environment Fundgovernance committeeIntegrated into the Environment Fund isa governance committee which overseesthe implementation of projects. Thecommittee includes one councillor andone community representative fromeach of the six wards, as well as anindependent scientifi c advisor. Counciloffi cers regularly report to the committeeon the progress of various projects.Environmental Management ProgramIncome $0.23mEnvironment Fund$0.23mEnvironmentalManagement OutlookThe 2006-07 year willsee us implementinga range of innovativeeducation programs tohelp change people’sbehaviour and promotemore sustainablepractices. We willcontinue to deliverprojects identifi edthrough our EnvironmentManagement Plan, andensure accountabilitythrough an ongoingcommunity contract.Community contractTo ensure community participation andCouncil accountability in the EnvironmentFund, we have initiated a communitycontract. The community contract details acomprehensive program of environmentalworks under the themes of sustainability,water quality and biodiversity.The community contract is a wayof reporting back to the communityon Environment Fund projects. Thishelps us demonstrate transparency inproject selection and provides full publicaccountability of all spending. All externalproject grant funds obtained from eitherstate or federal bodies are also reported inthe contract.Environmental Management Programincome vs. total Council incomeTotal Environmental Management Programexpenditure was $0.23m or 0.15% of totalCouncil expenditure ($157.74m).Environmental Management Program Performance Against Objectives113

Matching funds for Environment Fund projects - 2005-06State GovernmentSouthern Rivers Catchment Management Authority $150,000Southern Rivers Catchment Management Authority- Estuary and Coastal Lakes Program $110,000Department of Natural Resources - Estuary Program $150,000NSW Environmental Trust - Willow and Coral tree removal $30,000NSW Environmental Trust - Puckeys Estate $28,980NSW Environmental Trust - Hargraves Creek $20,000OtherLocal Government and Shires Association $20,000Ethnic Communities Council $15,000Bundaberg Rum Bush Fund $5,000University of Wollongong $10,000Baulderstone Hornibrook $10,000Total $548,980Stormwater qualityimprovement devicesAs part of the Environment Fund's driveto improve water quality in Wollongong,we installed two Stormwater QualityImprovement Devices (SQIDs) totrap pollutants before they reach ourwaterways. Information signs and adiagram demonstrating how the SQIDoperates have also been installed at eachsite. Both units remove large items, suchas plastic bags and bottles, as well assmall particulate matter and sedimentswhich contribute to excessive amounts ofnutrients reaching our creeks and beaches.One SQID unit was constructed at JJKelly Park, Wollongong, in a catchmentthat includes the Wollongong city centreand treats stormwater that dischargesinto Tom Thumb Lagoon. Construction ofthis unit was completed in January. Thesecond SQID was installed in conjunctionwith the Lake Illawarra Authority, at KullyBay Park, Warrawong. This location waschosen as it services the Warrawongshopping district.Environmental Management Program114As well as being reported in our annualreport, information on the communitycontract appears in our State of theEnvironment Report, on the EnvironmentFund website and in regular communitynewsletters and newspaper columns.During 2005-06, two quarterly Councilnewsletters were dedicated to EnvironmentFund projects and information on the statusof individual projects was provided throughCouncil community update columns in localnewspapers.Leverage of stateand federal fundingA key objective of establishing theEnvironment Fund was to attract additionalfunding from state and federal governmentfunding agencies and any other fundingsources. During the year we made anumber of grant applications to fundingagencies, and we also negotiated with theSouthern Rivers Catchment ManagementAuthority for matching funds to developa three-year environmental program. Intotal we applied for 16 grants and 11 weresuccessful. The value of grants received in2005-06 was $548,980.Waterways educationThrough our waterways educationprogram, established under theEnvironment Fund, schools andcommunity groups have the opportunityto participate in stormwater pollution andcatchment management activities.A play entitled 'Clean Up Your Act'has been performed widely at schools,community events and the WollongongBotanic Garden discovery centre, tofocus on stormwater pollution createdby households. Seven schools tookpart in the catchment caretakersprogram in conjunction with the IllawarraEnvironmental Education Centre. Studentsinvestigated water quality at a local creek,learnt about stormwater pollutants andused this knowledge to develop andimplement a water action plan for theirschool grounds.We also produced an interactiveteaching resource called 'Stormwaterstarts on our streets', and in partnershipwith the Illawarra Environmental EducationCentre we developed the Eco-citizensschool program. The program will fostercurriculum based environmental educationthrough excursions to Mt Keira rainforest.In 2007, year fi ve and six students from 16government schools will participate.Mobile sustainability trailerWe developed a mobile sustainability trailerto assist in conducting environmentaleducation activities at schools and publicevents. The mobile education unit runs onsolar energy and includes many examplesof energy use in the home and naturalenvironment.The trailer provides shelter and shade,making it perfect for the summersustainability tour we ran over December.As part of the tour we visited eight popularbeach locations and invited the communityto view examples of environmentallysustainable devices. Those who visited thetrailer gave extremely positive feedback.SustainabilityThe majority of this year's sustainabilityprograms were educational in nature, tohelp change behaviour. One example,Sustainability in the Workplace, aimedto improve the environmental, socialand economic performance of smallto medium enterprises and in doing sopromote and contribute to asustainable future.Key achievements for 2005-06 includedstaging of a number of seminars anddisplays at trade exhibits to promotethe program and provide information onthe nature and benefi ts of eco-effi ciencymeasures. We developed partnerships withkey government agencies and industryassociations to collaborate on joint venturesand share information and resources. Oneof these partnerships was established withSydney Water, and together we worked toaddress water effi ciency in the hospitalitysector. Participants in this pilot includedclubs, hotels and restaurants. Next year wewill refi ne the program and adapt it to othersectors.Sustainability eventsWe are working on an integrated strategyto incorporate sustainability initiativesinto event planning, including reducingair pollution by encouraging the use ofpublic transport, using alternative powersources such as solar power, and workingwith food vendors to minimise waste, andsupport the use of organic products andlocal food supply.This strategy builds on the success ofthe 2005 Sustaina-Festivity and the wastewise practices implemented at a numberof annual local events including theThirroul Seaside Festival.

BiodiversityThe biodiversity program was developedin response to the prevailing issue ofdegrading biodiversity in Wollongong. Theregion has a rich diversity of fl ora and faunaand is home to 28 plants and 61 animalspecies on the threatened species list.Several recent studies have emphasisedthe need to restore and conserveWollongong's remaining bushland,foreshores, wetlands and escarpment.This year the focus for biodiversitywas to continue conducting bushlandrestoration and revegetation work at anumber of sites containing threatenedspecies and ecological communities.Work included removing weeds andplanting native species, as well as weedmaintenance work for rehabilitated areas.Detailed vegetation management planshave been developed for sites at ByarongCreek, Figtree, Hargraves Creek, StanwellPark, and Cawley Road/ Towradgi Creek,Towradgi.Southern Rivers CatchmentManagement AuthorityDuring 2005-06, we signed aMemorandum of Understanding with theSouthern Rivers Catchment ManagementAuthority (SRCMA). The signing meantboth organisations will provide matchedfunding to undertake environmentalrestoration work under four themes;threatened species, river rehabilitation,native vegetation and estuary/wetland.Work for threatened species occurredat four sites to protect the habitat of thethreatened plant species CynanchumElegans. Work funded under the riverrehabilitation theme was undertaken atByarong Creek, Figtree, Ziems Oval andTowradgi Creek, Corrimal. Activities underthe native vegetation theme involvedpreparation of vegetation managementplans for Perkins Beach at Windang andKorungulla wetlands at Primbee. Workfunded under the estuary/wetlands themewas undertaken at Tom Thumb LagoonWollongong, Cawley Street on TowradgiCreek, East Corrimal, Puckey's Estate,Wollongong, JJ Kelly Park, Wollongongand Hargraves Creek, Stanwell Park.Weed tree removalWillow and coral trees are both consideredweeds and are being progressivelyremoved from sites around the city.This work is being funded throughour Environment Fund and the NSWEnvironmental Trust. These weed trees arechoking the creeks and are being removedto reduce potential fl ooding risks. Duringthe year we undertook work to remove atotal of 368 weed trees, comprising 246coral, 95 willow, 18 elm, 5 camphor laureland 4 privet trees. These weeds wereremoved from; Ziems Oval, Corrimal; RoyJohanson Park, Byarong Creek, Figtree;Kararra Park, Robins Creek, Horsley;Wilson Street, Scarborough; Clowes Park,Austinmer; Whartons Creek, Bulli; ByarongCreek, Figtree Oval, Figtree; ByarongCreek, Preston Street, Figtree; and MulletCreek, Dapto.Following removal of the weed trees,the areas were stabilised and revegetatedwith the appropriate local native plants,creating suitable habitats for wildlife.Site specific waterquality monitoringIn conjunction with the Universityof Wollongong and BaulderstoneHornibrook, we installed a water qualitymonitoring station on the Fairy Creekbridge. The unit will monitor a range ofwater quality parameters and the datafrom the monitoring unit will be availableon the internet.Irrigation ofRussell Vale Golf CourseFunding from the Environment Fundwas used to install pumps, pipelines andsprinkler systems which can be usedto collect water from stormwater andleachate ponds and irrigate the greensand fairways of the Russell Vale GolfCourse. This recycled water will replacethe use of potable water for irrigation ofthe golf course.In addition to reusing leachate andstormwater, we had also planned tocapture, treat and reuse waste water froma nearby coal mine. However subsequentinvestigation of the mine's water qualityshowed salt levels were too high, makingit too expensive to treat. As a result, thissection of the project did not proceed andwe are currently investigating other optionsfor reuse of stormwater on the site.Projects initiated throughthe community fundA component of the Environment Fundis dedicated to matching small grantsof up to $5,000 for community groups.During 2005-06, community grants wereprovided to WIRES for injured animalcare and rehabilitation, Spearing ReserveBushcare Group, Coniston Public Schoolpermaculture garden, Healthy LocalGovernment Grants Program to establisha community garden at Cringila Park,University of Wollongong for research onthe endangered green and gold bell frogand the Ethnic Community Council toinstall waterless woks in Asian restaurants.Tony Miskiewicz coordinates an environmentalmanagement project at Byarong Creek, Figtree.Environmental Management Program115

PROGRAM GOAL: To assist in the delivery ofquality services to the community by providingeffective support and management servicesto the organisation.Glen Beadman from our marketingteam prepares new signage for theIllawarra Performing Arts Centre.

AdministrationVoice communication systemsWe have two customer service operatorson duty at all times to process telephonecalls to our advertised number. Duringthe year, our switchboard staff receivedmore than 165,000 telephone calls. Ofthese, 96% were answered within 30seconds and only 2%, or 2,608 calls, wereabandoned before being answered.We also implemented a new telephonequeuing system in our DevelopmentAssessment and Compliance Division,which has been very successful for bothstaff and customers.Supportingneighbourhood committeesDuring the year Council undertook areview of the operation of neighbourhoodcommittees. The review identifi ed anumber of key issues such as lowcommunity attendance, meetingsbeing held without a quorum, agendasmonopolised by development applicationmatters, low Council offi cer attendanceand no contemporary rationale forthe existing composition of the tencommittees.Council was keen to examine options fornew models for community engagementand legitimate community consultationincluding the consideration of newtechnology such as on-line forums andless formal structures such as the DropIn centre or events. A draft communityengagement menu was prepared andplaced on public exhibition in June.AdministrationOutlookA priority over thecoming year is theexpansion of our fi leclassifi cation systemto help staff fi le andretrieve documentsfrom our documentmanagement system.Best practicecustomer serviceand new methodsof communityengagement will be atthe forefront.Electronic documentmanagement systemFrom 1 July 2005, we began scanningall incoming mail which is now availableelectronically within our documentmanagement system.We began Stage 1 of a fi le classifi cationsystem, initially within our Technology andAdministration, Finance and CommercialProjects and Property divisions, and duefor release to other staff over the nextsix months. The system will help staffaccount for corporate documents andsearch for documents in our documentmanagement system.Legal and RiskCAPS risk assessmentOur formal method of risk managementuses the 'CAPS' database to identify,quantify, evaluate and prioritise risksassociated with various Council functions.The existing FigCAPS risk managementsoftware is obsolete and is in the processof being replaced in conjunction withacquisition of an asset managementinformation system.CAPS risk assessments were undertakenfor Wollongong City Gallery, Council'scommunity transport services and the PortKembla Hill 60 location and facilities.Legal and RiskOutlookWe will continueto implementbest practice riskmanagement systemsto minimise thelikelihood of harmto users of Councilservices and facilities,and costly claimsagainst Council.Below: Inspector Garry Suters,Operations Officer, NSW Rural FireService, in the Bulli control room.Performance Against ObjectivesOrganisational ServicesExpenditure $32.26mMarketing$2.89mLegaland Risk$4.65mLandInformation$1.54mInformationTechnology$2.75mHuman Resources$9.57mCorporateDevelopment$0.40mCommunication andPublic Relations$1.53mAdministration$3.84mFinancialManagement$5.08mOrganisational Services expenditurevs. total Council expenditureTotal Organisational Services expenditure was $32.26mor 19.81% of total Council expenditure ($162.82m).Organisational ServicesIncome $105.44mMarketing$0.69mLegaland Risk$0.36mLandInformation$0.01mInformationTechnology$0.002mHuman Resources$0.16mCorporateDevelopmentNILCommunication andPublic Relations$0.17mAdministration$0.09mFinancialManagement$103.97mOrganisational Services incomevs. total Council incomeTotal Organisational Services income was $105.44mor 66.85% of total Council income ($157.74m).Organisational Services117

Reducing Council's risksWe identify risks by strategic, informal andformal methods. Once risks are identifi edthey can be evaluated and prioritised topermit rational management decisionmaking on their treatment. All Council staffare responsible for the management ofrisks in the functions they perform. Thesecollective risk management actions reducethe total value of Council's risks.Our diverse operational risk managementachievements during the year included:• initial development of a businesscontinuity management plan to beimplemented in the event of the loss ofCouncil's administration building.• a regular risk management informationmessage in Council's staff newsletter,NV Monthly to keep employeesinformed and aware of risk managementand its importance in the workplace.• our insurance coverages have beenincreased to minimise Council'suninsured risks and propertyinsurance has been secured based onindependent and current valuations.• we instituted a major upgrade of theelectrical supply and safety equipmentfor Council's administration building andother prominent buildings, and risksidentifi ed for Wollongong City Gallery,community transport services and Hill60 have been prioritised and treatmentscommenced.Risk financing and valuationsInsurers are now taking more care aboutwhat risks they underwrite, and Councilis required to provide more detailedinformation on its insurable assets thanhas previously been the case.We engage consultant property valuersfor all Council-owned buildings, includingthose on Crown land, and buildingcontents including furniture, informationtechnology equipment, photocopiers,fax machines, telephones and specialfurnishings and plant. In the event of a fi re,storm or fl ood, it is likely that damage to abuilding will also involve damage to theseadditional assets. The valuations alsoinclude additional assets at each locationsuch as fencing, landscaping, paving,swimming pools, structures, ornaments,monuments and sculptures.Wollongong City Gallery retains specialistvaluers for its artworks, and signifi cantitems of privately owned artwork on loanon both permanent and semi-permanentbases have been included while they arein the gallery's care. The specialist valuersalso determine valuations for the IllawarraHistorical Society museum artefactscollection, monuments, public artworks,antiquities and heritage furniture, includingitems at Gleniffer Brae Manor House andGlengarry Cottage.All of Council's insurable risks/assetswere valued by 11 March 2006.Insurance policy renewalsAll of Council's insurance policy renewalproposals were prepared and completedfor submission to the insurance marketby 31 March 2006. We proposed andsecured insurance coverage for thefollowing risks:• public, products, professional indemnityand principal-controlled liability;• ISR property;• computer breakdown;• boiler explosion;• inland transit;• travel and personal accident;• statutory liability;• councillors and offi cers;• crime (fi delity guarantee);• workers compensation (excessemployees);• motor vehicle fl eet;• marine hull.All insurance contracts were renewedat 4pm on 31 May 2006 with policiesproviding increased and more extensivecoverages but at a total premium costwhich remained within Council's budgetestimates for this expenditure.Total cost of legal services 2003-04 2004-05 2005-06Peedoms/Kells (General advice) $360,643 $425,846 $469,062McCabes Terrill (Claims defence) $169,779 $234,565 $243,219Clayton Utz (Specialist advice) $168,886 $164,887 $683,511Maddocks (Specialist advice) Nil $40,899 $22,804Ebsworth and Ebsworth (Specialist advice) Nil Nil $4,348Kearns and Garside (Sandon Point) $5,801 Nil NilMarsdens $3,525 $8,266 NilOrganisational Services118Phillips Fox (Planning) $48,327 $41,570 $30,921Deacons (General advice) Nil $16,986 $1,146Australian Business Lawyers (Specialist advice) Nil $154,378 $51,785Minter Ellison Lawyers (General advice) Nil $28,790 $35,396Moray and Agnew (General advice) Nil $19,865 $20,012Sparke Helmore (General advice) Nil $10,502 $10,259Barristers $35,075 $47,569 $120,040Total $792,036 $1,094,123 $1,692,503

Settlement of claimsWe manage claims made against Councilby using our own offi cers to settleclaims rather than contracting the workexternally. To assess the effectiveness ofthis policy, the cost of claims settlementsis compared with the reserve amounts foreach claim determined by independentassessors. For the fi ve claims settledbetween 1 July 2005 and 30 June 2006,the independently assessed prior totalestimate for settlement was $155,000.The claims were settled by Council'sclaims offi cers for a total amount of$116,373.Legal servicesCouncil's total legal expenditure variesaccording to changes in the nature of ourfunctions and overall volumes of workload.While Kells the Lawyers is Council's fi rstchoice provider of legal services, weengage different legal advisers accordingto our requirements and the relevantexpertise of each legal fi rm.InformationTechnologyOutlookDevelopingan informationtechnology strategywill be a priority forthe coming year,along with furtherbuilding on ourcustomer responsetimes and continuingour rolling programto update technologythroughout theorganisation.Information TechnologyProviding IT support servicesThe Information Technology (IT) functionis responsible for providing end usersupport services for the organisation'sinformation technology systems andinfrastructure. This encompassesapproximately 1,000 system users utilisingmore than 1,000 hardware devices suchas personal computers, servers, printersand scanners, and more than 100 differentsoftware applications.The key delivery mechanism for thisservice is through the IT Help desk whereclients raise requests by phone or email.IT support request levels remained steady,with 9,048 requests received compared to9,304 in the previous year.Another important role is theprocurement and installation of themajority of hardware devices used withinCouncil. As part of our rolling updateprogram to ensure our organisationcontinues to use up-to-date technology,388 personal computers were upgradedand replaced this year.Help Desk requestsTo ensure we deliver prompt andconsistent service to the organisation,we have introduced a new performanceindicator measuring our response torequests for support within one businessday. An aggressive target of 95% ofrequests has been set.Our Help Desk team has come close toconsistently achieving this target, but someslippage has occurred due to incorrectclosure procedures of some call requests.We are now reviewing our process for callclosure to address this issue.Supporting Council'sbusiness systemsWe strive to provide an IT infrastructurebase that provides the necessaryperformance and reliability to operateCouncil's systems with minimal impact onservice delivery.We have achieved excellent resultsthis year, with no signifi cant unplanneddowntime to critical infrastructure. Anaverage uptime of 99.8% was achievedacross 13 key systems (includingdowntime out of core business hours).Remote access for councillorsOne important project successfullycompleted this year involved addressingCouncillor computing resourcesrequirements. To improve communicationand access to information, electedmembers have been supplied withbroadband connections and laptops toallow virtual private network access intoCouncil's network resources. Councillorsnow have access to Council suppliedemail, internet and intranet resources.Network and storageinfrastructureWe successfully upgraded Council'sstorage and server technology, providingincreased performance of our systemsand increased storage capacity. Providingincreasing levels of storage and backupservices has been an ongoing challengeas the organisation moves forward withelectronic imaging and electronic storageof all created documents through ourelectronic document management system.The implementation of storage areanetwork (SAN) technologies is providinga reliable and fl exible solution to thischallenge.We have also begun replacing outdatedlegacy computer cabling, with six fl oorsof Council's administration buildingscheduled for upgrade. Modern datacabling will provide faster and morereliable access to Council IT systems forsystem users.Microsoft licensing agreementCouncil is currently enrolled in theMicrosoft and state governmentagreement known as ‘NAMS’ whichprovides the necessary software licensingto operate all our systems and PCs.Negotiations for NAMS version two havebeen delayed and were not completed by30 June 2006. The existing agreement isto continue into the new fi nancial year.Organisational Services119

MarketingPerformance levelsForte Marketing and Design completedanother successful year, both in terms ofservice expansion and the level of incomereceived from internal and external clients.As well as ongoing positive feedback ona range of projects, Forté again receivedrecognition in the Australasian AnnualReporting Awards with the 2004-05Wollongong City Council Annual Reportbeing awarded a gold award for reportingexcellence.In February 2006 a decision was takento focus Forté's activities from 1 July 2006on internal Council clients and projectsfor Council's affi liated organisations- the Illawarra Performing Arts Centre,Wollongong City Gallery, Crown St Malland Tourism Wollongong. Therefore duringthe second half of 2005-06 there was ascaling down of work for external clients inpreparation for this changeover.During the year, a total of 2,237 projectswere commissioned, ranging from basicpress advertisements and street signsto strategic branding and corporateimage campaigns. Of these projects,1,937 were produced for Forté's Councilclients and affi liated organisations. Thecombined value of these projects was inexcess of $2.37m.Production capacityDuring 2005-06, Forte continued tooperate under a billable hours system thatset annual production capacity for boththe organisation and individual membersof staff. Total production for the yearwas recorded at 24,200 hours. This wassignifi cantly down on previous years as aresult of the decision in February to scaledown external work so that it could ceaseby 30 June 2006.Marketing OutlookThe next twelvemonths will seeour marketingunit consolidateits position withinthe organisation,after previouslyservicing bothinternal and externalclients. Marketingstaff will take onan increasinglystrategic role forCouncil, drivingdecisions about theorganisation’s imageand branding.Council's corporate identityAn audit of organisational marketingtools commenced in June 2006 and thiswill form the basis of a major review ofCouncil's corporate identity and branding.The change from servicing both externaland internal Council clients to being anorganisational marketing unit for Councilwill enable Marketing to play a far greaterstrategic role in ensuring Council'scorporate identity is promoted in aconsistent and highly professional manner.Income from external clientsIncome from external clients for 2005-06was $689,000, a decrease compared withthe previous year.Income levels were directly impacted bythe decision to wind down Forte's externaloperations by 30 June 2006.Forté Marketing and Designenterprise agreementDiscussions continued in 2005-06 tofi nalise this agreement. Among a rangeof other issues, the Forté ManagementCommittee considered the fullcorporatisation of Forté, for which thegroundwork was done in developing adraft enterprise agreement that wouldhave served as the foundation fornegotiating a formal enterprise agreementfor the new operation.With the decision not to proceed downthe corporatisation path, plans were put inplace for Forté to focus solely on Counciland affi liated organisation projects from 1July 2006. Forté staff will now continue tobe covered by Wollongong City Council'senterprise agreement.Service level agreementwith CouncilThe service level agreement between FortéMarketing and Design and WollongongCity Council was introduced in January2005 to defi ne roles, responsibilities andservice standards for a broad range ofmarketing and advertising services. Theagreement underwent further refi ning in2005-06 and was monitored by the FortéManagement Committee.With the decision to focus work oninternal areas, the service level agreementwill now be further refi ned to refl ectForté's new and more strategic role in theprovision of marketing services to Council.Marketing unit externalincomeMarketing unit totalproduction hoursMarketing unit number ofprojectsNumber of Help Deskenquiries1.4 $Million35,0003,00011,0001.21.291.4530,00033,67034,54034,5302,5002,7022,8082,7602,65710,00011,138Organisational Services1.00.80.60.41.031.110.5101-0202-0303-0404-0505-06Income levels were directlyimpacted by the decision to winddown Forté’s external operationsby 30 June 2006.25,00020,00015,00010,00025,96001-0202-0303-0404-0524,20005-06Hours were signifi cantly down onprevious years as a result of adecision to scale down externalwork.2,0001,5001,00050001-0202-0303-0404-052,23705-06Production levels fell as externalwork was scaled down fromFebruary 2006.9,0008,0007,0007,9569,2879,3049,04801-0202-0303-0404-0505-066,000The downward trenddemonstrates a stable and reliableIT infrastructure coupled withincreasing user experience.120

Financial ManagementStrategic and corporate planningThis year we focused on implementinga fi nancial revision strategy. Developedas part of the 2004-08 corporate plan,the strategy sets a recurrent annualimprovement target of $5m.The strategy's fi rst goal was to overcomeshort term issues such as unplannedcost increases, followed by work toensure we could achieve the plan's longerterm direction. The strategy also setsout to create additional available funds,appropriate asset management provisionsand organisational fl exibility by reducingthe proportion of Council's budget alreadycommitted to recurrent expenditure,and increasing the prioritisation of fundsthrough our funding allocation process.During the year we examined servicelevels, operational effi ciency and feestructures for specifi c improvementopportunities. We presented a range ofopportunities and incorporated these intoour fi nancial forecasts and programs.We have now identifi ed the majority ofthe $5m projected improvements andapproximately $700,000 is left to beincorporated into specifi c programs.Achievement of these programs meanswe can meet long term targets.FinancialManagementOutlookPriorities thisyear will includeimplementation ofour fi nancial revisionstrategy to achieveimprovement targets,and an upgrade ofour fi nance software.We will further buildon long term fi nancialforecasting strategies,particularly for majorprojects yet to bescoped.Providing quality informationWe have provided timely monthly reportsfor all staff to access through our intranetsystem, and have developed a range ofreports for internal management to assessoperational performance and identifyprojects. Through the quarterly reviewprocess we have also provided externalperformance reports and maintained longterm fi nancial projections.Revenue, funding and debtfinancing policiesIn 2004 the Minister for Local Governmentapproved our fi ve year rates revenuepolicy, which outlined a 5% increase in2005-06 and 2006-07 and a 4% increasein 2007-08 and 2008-09. The additionalrevenue will be used on infrastructuremaintenance.Changes to the Local GovernmentAct this year enabled us to introduce astormwater management charge. Thecharge will help us implement strategiesidentifi ed in the city's stormwatermanagement and fl oodplain managementplans. The cost of implementing all thestrategies in these plans exceeds $80m.Return on investmentsThe current industry benchmark is theweighted average return of investmentholdings compared to the average daily90 day bank bill rate as reported in theAustralian Financial Review.Throughout the year our investmentinterest earnings consistently exceededthe benchmark. This year our totalinvestment portfolio generated returns 34basis points in excess of the 90 day bankbill rate index (6.0% vs 5.7%). The portfoliocontinues to benefi t from its fl oating rateinvestment components, providing regularinterest payments at a known marginabove bank bills and reducing interestrate risk. We have also replaced a numberof fi xed interest securities such as termdeposits with managed funds investmentsin line with our developed investmentstrategy. This has resulted in generatedreturns in excess of comparable fi xedinterest securities.Council staff attend a trainingsession in new finance system, Ci.Organisational Services121

To improve our returns and ensurediligence when investing public funds,we have engaged Oakvale Capital PtyLtd as investment advisors for the nextthree years. In the past twelve months wehave continued to work within our policyand developed a strategy to direct futureinvestment decisions.External reporting requirementsA draft set of 2005-06 fi nancial statementswas available to our external auditors intime for their audit in August 2005. Thefi nancial statements were signed off at theSeptember Council meeting and lodgedwith the Department of Local Governmentthree weeks prior to our deadline.All requirements for the annual reportwere provided in a timely manner, aswere a number of other external reportsincluding the general return, comparativeinformation, fi nancial data return,application for borrowing and the localgovernment inquiry. We also complied withnew Australian equivalents to InternationalFinancial Reporting Standards and localgovernment accounting practices.Property rating, accountsreceivable and recovery servicesWe undertook a substantial review ofour rates and cashiers sections during2005-06. As a result, we developed amission statement to 'further developa multi skilled, fl exible and effi cient unitthat provides the best achievable qualityservices to our customers'.All staff involved in the review embracedthe mission statement and are workingtowards delivering excellence of service.We also introduced a comprehensivereporting mechanism to allow regularmonitoring of outstanding debtorsaccounts. The reports provide informationon the progress of collecting overdueaccounts.Our fi nance division is now workingwith staff in our information technologyarea to construct the system within atest environment. Performance testingis scheduled to be complete by July2006 and three project teams have beenestablished to support the implementation.The system will operate with a similarappearance to an internet environment,and there will be many new features tohelp improve performance and compliancein operations. Training for all users willbegin in August 2006.Long term financial planOur long term fi nancial model provides a10 year fi nancial forecast for income andexpenditure and is supported by detailedproject reports and projected restrictedcash holdings.The model is contained within thefi nancial management system whichensures consistency of data, reporting,and centralised access. This year's focuswas to develop the model further andcreate a continuous 'living document' thatincludes changing circumstances andpriorities over time.A major challenge for long term fi nancialforecasting has been recognising majorprojects on the horizon that have not yetbeen quantifi ed or scoped. A methodologyfor quantifying and including these projectswill be further developed.Financial revision strategyThe fi nancial revision strategy ispromoted not only to overcome theshort term issues brought about by theunplanned increases in employee costs,but must also be aimed at continuingwith the directions set in the 2004-08corporate plan in the medium to longerterm to ensure Council is not in thisposition again in fi ve years time, thatis, to create additional available funds,appropriate asset management provisions,and provide for organisational fl exibilitywith additional funding for reprioritisationof services through the Funding AllocationProcess. This strategy cannot besuccessfully implemented without the fullsupport of Council, management, the staffand unions of Wollongong City Council,and will be a signifi cant challenge over thenext 12-18 months and beyond.It is important to remember thatCouncil's commitments to the programsput forward in its rate submission mustalso be achieved as they are a conditionof the approval received from the Ministerfor Local Government. The ministerialapproval included the following conditions:1. The council will raise the additionalincrease for costs associated withinfrastructure maintenance andrenewal, as defi ned by the council;2. The council provides an updatedversion of its 10-year fi nancial planwhich has been agreed to by councilprior to adopting its 2005-06 rates;3. The council provides details of theperformance measures by which thecouncil will measure the success of itsinfrastructure maintenance and renewalstrategy;4. The council reports annually on theoutcomes achieved as a result of thevariation, continuing results in improvingeffi ciency, and rationalising servicesand progress towards implementing animproved asset management system;5. The council reports on any signifi cantvariations from its fi nancial plan andcorrective action to be taken; and6. The council includes reports preparedunder (4) and (5) above in its annualreport for the term of the variation.Organisational Services122Payment of creditorsWe are committed to recording an 80%compliance rate or better in relation topaying our creditors within standard creditterms. Payment records show that weachieved 88% compliance in 2005-06.This represents an improvement on the2004-05 statistics of 82%.Payment of payrollOur staff were paid their salaries and wageswithin agreed terms on 98% of occasions.Finance One upgradeWe planned to undertake an upgradeof our Finance One system from 10.2 to11.1 (.NET version) in 2005-06, however,the project was delayed due to anunacceptable risk in system functionalityand performance. Discussions with oursupplier have resulted in a new 'go live'date scheduled for 2006-07.Financial review strategyTargetTimeframe1 No budget expansion. Immediate and ongoing.2 Commitment to infrastructure managementprogram included in rates submission.3 $5m per annum reduction in operationalcosts*.Ongoing.Short term (agreed for inclusion inthe 2006-07 corporate plan).4 $3m to $5m in available funds. Medium term (within fi ve years).5 Increased annual available funding fordiscretionary purposes.Medium to long term (5-10 years).6 Asset management funding. Medium to long term (5-10 years).* The $5m reduction to operational costs has been included in the forecasts from 2006-07 to 2014-15. It is considered that this adjustmentwill provide suffi cient funds to maintain a positive Available Funds balance, however to achieve targets 4, 5, and 6 additional improvementswill be required.

The LIS team meet to discuss on-linerequests for maps, (clockwise from top left)Donna Perusco, Michelle Formosa, Val Ling,Isabel Pauza and Helen Simpson.Organisational Services123

Land InformationLand Information SystemThe Land Information System (LIS) isused to process many of Council's keyfunctions, including rates, developmentapplications, property administration,subdivision, licences and customerrequests. This year we continued toimprove the effi ciency of these functionsby transferring paper based functions overto digital processes. Council certifi catescan now be requested on-line andprivately certifi ed development applicationscan be lodged via the internet. We planto extend the range of services availableon-line during the coming year, includingdisplay and printing of maps.Land InformationOutlookA priority this year willbe the expansion of ouron-line services, allowingbetter access to maps.Our mapping systemwill be further enhancedwith the addition of newaerial photography ofthe city. We will alsocontinue our focus onconverting traditionalpaper based functionsto digital services.Aerial photo imageryDuring the year we commissioned newaerial photography, with the updatedimages providing full coverage of thecity at a higher resolution than previouslyavailable. The photography is beingmerged into seamless continuous imageryand will be added into our mappingsystem for staff and public access.Human ResourcesOccupational Health and Safety(OHS)The safety of our employees is ofparamount importance and we arecommitted to providing a healthy, safeand injury free working environment. Thisyear we reviewed and upgraded our OHSmanagement system. The new systemdocuments and links each element toprovide streamlined and rationalisedprocesses, which will allow us to fully meetlegislative requirements and those of theWorkCover OHS model for self insurers.Workers compensationand injury managementIn line with the upgrade of our OHSmanagement system, we conducted adetailed review of workers compensationand injury management. The reviewincluded all procedures and documentsto guarantee standardisation. It alsoaimed to improve communication aboutnotifi cation of incidents, updating partiesat several stages on the process ofclaims, providing greater awareness ofsupervisor and employee responsibilitiesand analysing processes to providedetailed information on improvingdetermination of liability of claims.Since April 2006 there has been adecrease in lost time injuries and lost timedue to medical treatment, and it is hopedthese statistics will improve signifi cantlyover the next twelve months.This year our injury managementprocesses underwent an extremelypositive audit through WorkCover. Overthe next twelve months we will addressfurther refi nements to documentationand communication between Counciland medical providers. We also reviewedthe processes for long term sick leaveand implemented a communicationstrategy to ensure all staff understandtheir responsibilities under sick leave andthat human resources staff are involvedearly in the 'return to work' phase tohelp reduce lost sick leave time. Aninjury management intranet site wasalso developed to help reinforce newresponsibilities and procedures.Staff information on OHSImproved staff access to the OHSmanagement system included availabilityof information through the staff intranet,incident reporting through a dedicatedphone system and electronic managementof the corrective action system. To supportthe OHS initiatives a marketing strategy,'Get Smart Stay Safe', was introduced topromote a safety culture among all staff.Enterprise AgreementA new three year enterprise agreementfor the period 2005-08 was negotiated bymanagement and union representativeswithout industrial disputation, and beforethe expiry of the previous agreement.The new agreement refl ects the previoustwelve month interim agreement andreinforces the goal of providing bestvalue services to our customers throughcontinual improvement principles andpractices.Total number of positionsTraining course attendance- hours per personPercentage of employeesundertaking learning anddevelopment activitiesNumber of Lost Time InjuriesDays lost due to Lost TimeInjuriesDays lost per Lost TimeInjury1,2001,1001,0001,0871,1091,1351,1081,21230 Hours252025.430.395 %90859998879465605557681,2001,0008009661,34225201519.3225.31Organisational Services90080001-0202-0303-0404-0505-06700An increase in the overall numberof positions was refl ected by asignifi cant increase in temporarypositions offset by a reduction inother categories.1510516.701-0202-0303-0404-05181805-06Result remained the same as lastyear due to e-learning reducingtime away from the job and thenon requirement for some OHStraining.8075708101-0202-0303-0404-0505-06Target result is due to introductionof e-learning programs increasingtraining opportunities.504540525001-0202-0303-0404-055305-06Lost time remained static whencompared to previous two years.Implementation of new OHSsystem expected to have positiveimpact over next few years.60040020066073551901-0202-0303-0404-05Increase caused by a fewemployees having extendedperiods of time off to receivehospital treatment.05-06105011.5810.819.9801-0202-0303-0404-0505-06With the number of injuriesremaining static this result refl ectsan increase in days lost from longterm absences.124

Human ResourcesOutlookThis year we willcontinue to implementour upgradedoccupational healthand safety system,including increasedpromotion ofworkplace safetymessages to staff.We will enact anew employmentequity and diversityplan and build onour organisationalleadership program.Changes were made to the structure andterminology, and a further review resultedin some policies and procedures beingrelocated to our policies and proceduresmanual. The policies and procedures areset out in an annexure to the enterpriseagreement but do not form part of theagreement. A skills and performancemanagement assessment system wasnegotiated for all employees and theregrade policy was reviewed in light of thenew assessment system.Benchmarking human resourcesWe continued to receive results fromhuman resources consulting fi rm Mercer,containing indicators for measuring awide range of human resources activities.We use this information to measure ourperformance against industry benchmarks.This year we also reviewed our humanresources strategic plan to measureprogress and put forward strategyadjustments and objectives arising fromoperational and customer needs.During the year our OHS systems werebenchmarked against several metropolitanand southern region councils, who arealso self insurers. Regular meetings withrepresentatives from these councilsfacilitated exchange of system information,comparison of OHS data and intellectualproperty sharing. This allowed us to identifyopportunities for improvement, and reviewsome existing approaches to safety.Employment equity and diversityAs part of our ongoing focus on equalemployment opportunity, we embraceda new employment equity and diversity(EED) plan for 2006-09.We are committed to the developmentand implementation of the plan as itformalises our EED direction and objectivesand highlights a set of principles to ensureall Council decisions are based on meritand sound management practices.Through the management plan we areseeking to create a working environmentthat is free from discrimination, and isbased on merit and equality of accessto employment, promotions, learningand development activities. By having aworkforce that is more representative ofthe community we serve, we will achieve abetter understanding of the community'sneeds and improve our services.Learning, trainingand developmentWe strive through organisationaldevelopment to empower people tolearn and importantly, to enjoy learning.We believe the organisation mustunderstand and use the capabilitiesof its staff, as individuals are the primemeans of delivering corporate objectives.Staff learning is delivered throughmany mediums, including face to face,classroom, on the job and e-learning. Wealso offer opportunities to develop ourregion's youth through cadet, apprenticeand traineeship programs.The learning platform for 2005-06was largely consumed by corporatedevelopment programs such as theskills and performance managementassessment system which wasimplemented across the organisation.OHS legislative training also continuedto grow in response to changes inWorkCover requirements.Organisational leadershipWe implemented a leadership program forexecutive, senior managers and assistantmanagers this year, in line with ourcommitment to the Australian businessexcellence framework. A key part of theprogram was introduction of a behaviouralcomponent to identify strengths anddevelopment opportunities. This alsohelped develop strategies to improveoverall leadership capability.An important aspect of the2004-05 human resources strategic planwas analysis of employee leadershipcapability within the organisation. Weused the behavioural component of theorganisational development program tomeasure this capability. In 2006-07 we willfurther analyse this capability and developstrategies to harness individual strengths.Workers compensationcostsStaff turnover percentageNumber of workplaceinjuriesNumber of media releasesNumber of stories per mediareleaseNumber of positive/negativemedia stories2.0 $Million1.81.862.107 %67.001801601861993903803995.04.55.15,0004,0001.61.41.21.701.2501-0202-0303-0404-051.2905-061.0Costs have remained similar tolast year and continue to refl ectthe ongoing impact of legislativechanges.54325.985.614.685.5001-0202-0303-0404-0505-06An increase in turnover wasinfl uenced by industry shortagesand competition from the privatesector. Other areas have remainedstable.1401201008015901-0202-0303-0404-05144150A downward trend expected tocontinue as implementation ofnew OHS system takes effect.05-0637036035034037737337301-0202-0303-0404-0537005-06The number of media releasesfell slightly on last year but wasconsistent with previous years.4.03.53.02.54.44.43.401-0202-0303-0404-054.005-06The number of stories per releaseincreased as some media outletsexpanded their local newscoverage hours.3,0002,0001,0007901,8490Negative4921,8971,0382,5841,1583,376890The fi gure for positive storiesheld steady, with a reduction innegative coverage refl ecting ourstrategic approach to managingpotentially negative issues.3,36301-0202-0303-0404-0505-06PositiveOrganisational Services125

Establishment listing as at30 June 2006Office of Chief Executive OfficerCEO Group 4Communications & Public Relations 33City Strategy 23Offi ce of Economic Development 2Governance GroupGovernance Group 2Finance 54Technology & Administration 55Commercial Projects & Property 42Operations GroupOperations Group 2City Centre Management 3Community and Cultural Services 96Library Services 82Recreation & Natural Resources 299Works and Services 229People & Culture GroupPeople & Culture Group 2Human Resources & IndustrialRelations 49Corporate Planning & BusinessImprovement 4Sustainability GroupSustainability Group 2Design 61Development Assessment &Compliance 61Environment and Health 107Organisational Total 1,212Workplace reformThrough the new enterprise agreementwe have maintained a commitmentto providing effi cient, timely, costeffective and competitive services to thecommunity. A review of lifeguard servicework practices and an improvement inworkplace effi ciency is one example ofthe workplace reform process in action.Other areas of Council also introducedchanges to their work practices, resultingin improvements to the effi ciency of theirday to day operations.Employer of choice initiativesThrough enterprise agreement negotiationsand employment policies and procedures,we have developed and implementedinitiatives designed to enhance our positionas an employer of choice.Family friendly work practicesWe provide employees with a range offl exible working arrangements to ensurean acceptable balance between familycommitments and work demands.Flexible hours, paid and unpaidparental leave, job sharing, part timeand temporary employment, and ouremployee assistance program, are justa few of the options available. These arespecifi cally designed to make our workingenvironment an easier place for employeeswith family responsibilities.Employee welfareThe employee assistance program helpsmaintain the health and wellbeing ofour employees. The program assistsemployees who have experiencedpersonal and work related problemsaffecting their performance at work. Itfacilitates positive outcomes for both theemployee and the organisation.We receive a statistical report on use ofthe service, ensuring staff confi dentiality.The statistics are used to identify areasor topics which may impact on theorganisation or individual staff, and todevelop and implement strategies tobetter manage the situation or minimiseimpact on operations.Eliminating harassmentfrom the workplaceHarassment is considered an unacceptableform of behaviour and is not toleratedwithin Council. We are dedicated toeliminating all forms of harassment from theworkplace and have established a networkof harassment contact offi cers. Theseoffi cers provide a confi dential contact pointfor staff who would prefer not to take theircomplaint directly to their supervisor orwould like to speak to someone outsidetheir immediate work area.As well as providing regular informationon harassment, we also address anyspecifi c divisional needs. Harassmentallegations or staff concerns are dealt withat ground level and no formal complaintsare lodged with external authorities.Kathleen Packer, Beth Morgan and LanceHazell take part in a leadership exerciseunder our emerging leaders program.

Cadets, apprenticesand trainees (CATS)During 2005-06 we reviewed our CATsprogram and investigated the viabilityof partnering with a group trainingorganisation to employ Council'sapprentices and trainees.We consulted a number of localorganisations and identifi ed several shortand long term benefi ts of using a grouptraining organisation. These include betteruse of Council resources, fl exibility andexperience for the apprentice/trainee andbenefi ts for the community by targetingregional skills shortages. In June 2006Council voted to establish an ongoingpartnership (through a competitivetendering process) with a group trainingorganisation to manage all future intakesof apprentices and trainees.Cultural awareness trainingDuring 2005-06, senior managersattended a breakfast seminar on culturalawareness, and cultural awarenesstraining continued on a quarterly basis forall new employees. Ninety fi ve per cent ofall permanent staff who started at Councilafter 2002 have taken part in this training.Transactional employee selfservice systemThis year we implemented a transactionalemployee self service program to allowstaff to lodge and gain approval for leaveapplications on their computer. Employeeswith computer access can also view theirpersonal details, change their payrollbanking choices and access their leavebalances. All employees with Councilemail accounts now receive their payslipselectronically and have the option to sendit to a personal email address.Skills and performancemanagement assessmentCouncil's skills and performancemanagement assessment systemassesses staff performance against ourprinciples, skills, values and businessoutcomes. We developed the systemthrough consultation between union andmanagement representatives to recognisehigh performance across all levels of theorganisation. The system was introducedafter a series of employee informationworkshops, and formal annual reviewsbetween employees and supervisors arenow taking place.The system represents a majorchange for the organisation, allowingstaff to achieve salary progressionthrough a formal assessment basedon work performance. It also providesfeedback and identifi es developmentneeds and opportunities. The system'simplementation has required a signifi cantbehavioural shift for all employees whohad been operating under a competencyassessment system. The program wasdeveloped in house to suit our needs,making it a valuable tool in the overallmanagement of staff.Communicationsand Public RelationsCouncil communicationsOur communication strategy continuedto drive our various methods ofcommunication with the community andincluded weekly information pages in theWollongong Advertiser, weekly CommunityUpdate columns in the Illawarra Mercuryand Northern Leader, a quarterly hard copynewsletter, a monthly E-newsletter, andregular Lord Mayoral newspaper columns.Our website underwent continuousimprovement and plans commencedfor a major upgrading of the websitein late 2006. We introduced a weeklyradio message on two commercial radiostations to highlight issues of communityinterest, and a series of messages wasalso introduced on two multicultural radiostations.Effective media liaison continued tobe a key part of our communicationstrategy. During the year we issued 370media releases, generating an averageof 4 media stories per release. In all,3,363 positive stories were published orbroadcast in the local media, comparedwith 890 negative stories. This represents3.7 positive stories for every negative storypublished.Sister and friendship citiesThe strong relationship betweenWollongong and its sister cities ofKawasaki (Japan) and Ohrid (Macedonia)and friendship city of Longyan (China) hasbeen maintained. Council also resolvedto establish a friendship city arrangementwith the City of Yogyakarta in Indonesia.The Lord Mayor meets a delegationof young visitors from our JapaneseSister City, Kawasaki.Organisational Services127

Organisational Services128The continuing investigation of tradelinks with Longyan and the Fujian provincein China was enhanced with businessorganisations within the city representedat two major trade and technology fairs inthat province. The offi cial opening of therefurbished Japanese traditionaltaiko-bashi (drum bridge) in theWollongong Botanic Garden - a replicaof the bridge presented to the city in1993 - along with a successful visit byKawasaki teachers, the annual hostingof Wollongong University students inKawasaki, and the Kawasaki JuniorCultural delegation to Wollongongcontinued to enhance the traditionalvalues of interaction between the twocities. The appointment of Mr ViktorGaber, Ambassador of the Republic ofMacedonia to Australia has strengthenedthe relationship between the cities of Ohridand Wollongong.Civic and community eventsMajor events during the year included NewYear's fEVEr celebrations, Australia Daycelebrations, Local Government Weekactivities and the Lord Mayor's GivingTree.The Lord Mayor once again hostedbusiness luncheons with guest speakersMs Gail Kelly, Managing Director and CEOof St George Bank, and former VictorianPremier and Chairman of beyondblue, theHon Jeff Kennett AC. The Lady Mayoresscontinued to support the Mother's DayFun n Run, raising approximately $24,350for the National Breast Cancer Foundationand also donated $6,500 to the localState Emergency Services from the LadyMayoress Luncheon and Fashions in theSpring.Council continued to host a number ofreceptions to honour visitors to the cityof Wollongong, including theGovernor-General, Major General MichaelJeffery AC, CVO, MC, AFL premiers theSydney Swans, the Macedonian Ministerfor Culture, Mr Blagoja Stefanovski, theVienna Boys Choir and delegates from oursister city Kawasaki. Functions were alsoheld to recognise outstanding achieverssuch as Illawarra Academy of Sportscholarship holders, Order of Australiamedal recipients, Commonwealth Gamesathletes, and the Lord Mayor's SportsAward recipients.Community feedbackWe conduct a community survey everytwo years to obtain valuable feedbackon areas where we need to focus ourattention and resources. The next surveywill be conducted in 2007.The most recent survey, in March 2005,found the issues of highest communitypriority but lowest satisfaction were roadmaintenance, planning and development,and job creation. During 2005-06 weCommunicationsand PublicRelations OutlookDuring the comingyear we willcontinue to refi neour communicationstrategy, upgradeCouncil's websiteand build on oursuccessful sisterand friendship cityrelationships. We willrelease results of ourlatest staff survey andplan for our next majorcommunity survey.continued to address these and otherpriority issues through a series of programs.A multi million dollar project to improvemaintenance of the city's infrastructureincluding roads, moved into its secondyear. Work continued on production of anew citywide plan to guide development,major changes were drafted for ourdevelopment notifi cation policy, andimproved development approval times werean ongoing focus. Our Offi ce of EconomicDevelopment worked with other agenciesin the city on job creation strategies.Among many other measures, thesurvey seeks to gauge the perceived valueof services we provide to ratepayers.Respondents are asked to rate the valueof Council services in their area, using ascale of 1 to 5, with 1 meaning 'very poorvalue' and 5 being 'very good value'. Weachieved a 3.1 rating in 2005.Staff feedback onorganisational issuesA staff survey was conducted inFebruary-March 2006 and results weredue for release in July 2006. The CEO andexecutive visited all organisational worksites in August 2005 to discuss majortopics and seek staff feedback on areas ofconcern.The News and Views weekly informationsheet, distributed with payslips, continuedto be an important source of informationfor staff, along with the monthly newsletter,NV Monthly. Staff were also able to accesstimely information through Council'sintranet site.Monitor the organisation'sinternal communication strategyAn important aspect of the staff surveyis to measure the percentage of staffwho receive information from staff newsupdates and News and Views.Due to changes within Forté Marketing,the unit of Council which produces thestaff survey and analyses results, statisticsfrom the February-March 2006 surveywere not available by 30 June 2006.New Year's fEVEr in the GongFor the second year, we staged a highlysuccessful community celebration onNew Year's Eve. New Year's fEVEr inthe Gong 2005 attracted approximately8,000 to Wollongong's Lang Park for afamily-friendly celebration featuring freeentertainment, amusement rides andstalls, and fi reworks over the ocean.The project was managed by Council,with sponsorship funding from WINTelevision and media support from i98FMand the Illawarra Mercury.Corporate DevelopmentCouncil's strategic planThe 2006-15 strategic plan 'Tomorrow'sCity' was developed this year, followingexpiry of the 1997-2006 strategic plan.The new plan was developed throughseveral workshops with councillors,executive and senior management. Theworkshops were used to discuss the keythemes and conclusions from Council'smajor planning projects, includingWollongong Futures, the economicdevelopment strategy and the social plan.The strategic plan is structured aroundsix program areas; city leadership,development management, environmentand conservation, economic growth,community life and infrastructure. The planoperates at a high level and sets out thesteps we will take over the next decade toachieve the city's vision.The new look ten-year strategic planhas necessitated a structural review ofthe fi ve year corporate plan, the annualfunctional business plans and the monthlymanagement reporting process. Thesechanges will come into effect during nextyear's reporting cycle.Staff achievementThe staff achievement and recognitionawards formally recognise exceptionalcustomer service, performance ordevelopment of individuals or groupsworking at Council. Staff, supervisors,managers or members of the public areable to nominate any employee, and theLord Mayor and Chief Executive Offi cerpersonally acknowledge all nominatedstaff at quarterly and annual functions.

The popularity of the program has ledto an increase in nominees over the pastfi ve years, with the exception of 2005.Participants frequently cite the awards asa positive and rewarding experience, andregular reviews of the awards processand internal promotion ensure ongoingsupport.Meeting legislativerequirementsEach year we develop an organisationalplanning calendar to ensure we meetcritical dates for Council's corporateplanning and budgeting. These datesinclude milestones for activities such asmanagement and staff input, budgetdeliberations, priority setting, councillorworkshops, fi nancial projections, planexhibition periods and endorsement byCouncil.A recent best practice review conductedby the Department of Local Governmentindicated that our planning processes andcompliance with legislative requirementswere at the leading edge. We reviewand improve our processes annually;for example this year we piloted a newcommunity engagement initiative tobroaden the community's input during theplan's exhibition period.Process improvementThis year we implemented the last stageof the current organisational developmentprogram, establishing a new intranet siteto help manage our approach to systemsand process improvement. The siteallows us to store system documentationand track the progress of nominatedprocess improvement teams. Currentlysix projects are being tracked on the site,representing a resurgence in the formalapplication of process improvementwithin the organisation.We developed a fi nancial strategy aimedat direct budget cuts across all divisionsand delivered training to 30 staff whohad been nominated to work on priorityprocess improvement projects within theirdivisions. Twelve staff were also trained asimprovement team facilitators.Organisational measurementand reportingA direction from our information systemspolicy group to investigate and implementmore automated planning and reportingprocesses has prompted us to examine anumber of new software systems. Duringthe year we initiated a pilot implementationof the ReFlector system, designed tocapture and display the organisation'skey performance indicators and businessinformation. The new system contains 60performance indicator charts includingsafety, fi nance, people, systems andprocesses and major projects.The system provides data andinformation in a clear format, allowingexecutive management to reviewperformance in key business areas. It hasthe potential to become a vital part of theorganisation's performance managementand reporting, particularly in the areas ofmonthly reporting, funding priorities andbusiness improvement opportunities. Thesystem is scheduled to be implementedacross all management levels by the endof next fi nancial year.LGMA Management ChallengeCouncil again hosted the LocalGovernment Managers Australia (LGMA)Management Challenge during 2006. Thirtytwo local government teams gathered inWollongong to compete against each otherin a number of simulated situations andscenarios. Wollongong City Council wasrepresented by two teams, mentored bystaff from our Corporate Development area.Although we did not have a winning side,the 12 staff who participated gained manyindividual benefi ts and enhanced theirleadership skills.Jenny Harding, Kathleen Packer and MarkRobson prepare to compete in the annualleadership competition, the Local GovernmentManagement Challenge.Organisational Services129

Financial Statements ContentsFinancial Report ContentsFinancial Executive Summary 131Financial Commentary 132Financial OverviewFinancial Reporting 140Statement by Councillors and Management MadePursuant to Section 413 (2) (c) of the Local GovernmentAct 1993 (as amended) 141General Purpose Financial StatementsIncome Statement for the Year Ended 30 June 2006 142Balance Sheet as at 30 June 2006 143Statement of Changes in Equity for the Year Ended30 June 2006 144Cash Flow Statement for the Year Ended 30 June 2006 145Notes to, and Forming Part of,the General Purpose Financial ReportsNote 1 Signifi cant Accounting Policies 146Note 2(a) Functions 155Note 2(b) Components of Functions 156Note 3 Revenues from Continuing Operations 157Note 4 Expenses from Continuing Operations 160Note 5 Net Gain or Loss on Disposal of Assets 162Note 6 Cash Assets and Investment 163Note 7 Receivables 165Note 8 Inventories and Other Assets 166Note 9(a) Infrastructure, Property, Plant and Equipment 167Note 9(b) Infrastructure, Property, Plant and Equipment 168Note 10 Liabilities 169Note 11 Reconciliation to Statement of Cash Flows 170Note 12 Commitments for Expenditure 171Note 13 Statement of Performance Measurement 172Note 14 Investment Property 173Note 15 Financial Instruments 174Note 16 Signifi cant Variations from Original Budget 176Note 17 Statement of Contribution Plans 178Note 18 Assets and Liabilities Not Recognised 181Note 19 Investments Accounted for Using theEquity Method 182Note 20 Revalution Reserves and Retained Earnings 183Note 21 Transition to AIFRS 184Note 22 Reinstatement, Rehabilitation andRestoration Assets 191Note 23 Non-current Assets Classifi ed as Held for Sale 191General Purpose Financial Reports -Independent Audit Report toWollongong City CouncilReport on the General Purpose FinancialReports - Section 417 (2) 192Report on the Conduct of the Audit forYear Ended 30 June 2006 - Section 417 (3) 193Special Purpose Financial ReportsStatement by Councillors and Management MadePursuant to the Local Government Code of AccountingPractices and Financial Reporting 195Income Statement by Business Activities(Category 1) for Year Ended 30 June 2006 196Category 1 Business Activities - signifi cant variationsfrom Budget 197Income Statement by Business Activities(Category 2) for Year Ended 30 June 2006 198Balance Sheet by Business Activityfor Year Ended 30 June 2006 199Notes to, and forming part of,the Special Purpose Financial ReportsNote 1 Signifi cant Accounting Policies 200Special Purpose Financial Reports -Independent Auditor's Report toWollongong City CouncilIndependent Auditor's Report on theSpecial Purpose Financial Reports 202Special SchedulesSpecial Schedule No 1 - Net Cost of Services for theYear Ended 30 June 2005 203Special Schedule No 2 (1) - Statement of Long TermDebt (All Purpose) for the Year Ended 30 June 2005 207Special Schedule No 7 - Condition of PublicWorks as at 30 June 2005 208Special Schedule 8 - Financial Projections 210Financial Report130

Executive SummaryI am very pleased to present the Annual Financial Statements for Wollongong City Council for 2005-06.Amid the ongoing challenges facing local government and the increasingly high expectations we as acommunity have for quality services and facilities in a sustainable environment, I am happy to report thatwe have had a year of solid fi nancial performance.This fi nancial year is the fi rst period that the adoption of Australian equivalents to International FinancialReporting Standards (AIFRS) is refl ected in the Council's fi nancial reports. Details regarding AIFRS andan explanation of the transition can be found in Notes 1 and 21 of the statements.Council's overall cash and investment position has improved from $76.4m at the end of 2004-05 to$77.6m at the end of the current year. $65.6m of Council's cash ($63.1m in 2004-05) is restricted in itsuse to specifi c purposes by external bodies, legislation and Council resolution. The level of unrestrictedcash and investments decreased from $13.3m to $12m.The Income Statement (previously the Statement of Financial Performance) shows an operatingdefi cit from continuing operations of $5.1m which includes non-cash items such as depreciation andmovements in provisions for expenses accrued but not yet paid. The net operating defi cit before capitalgrants and contributions was $12.5m. The Income Statement provides some indication that Councilis not earning suffi cient revenue to carry out its day to day operations and maintain its current level ofassets over the longer term.Council's debt position has remained very conservative with a total debt outstanding of $19.5mrepresenting approx. 1.6% of Council's asset value. Council's Debt Service Ratio (Note 13 of thestatements) of 2.3% is low by industry standards and places Council in good stead for the future byadding to the fl exibility it has in making fi nancial decisions.During June, Council adopted the 2006-15 strategic plan and the 2006-10 corporate plan. Thestrategic plan sets out at a high level, the steps that Wollongong City Council will take over the nextdecade to achieve the vision articulated for the City. The corporate plan has been aligned to our newstrategic plan and is one of the organisation's most important management tools as it provides anoverview of our major projects and activities for the next fi ve years, as well as our budget.Major projects commenced or further developed during the year include the Asset ManagementStrategy, West Dapto Planning, Integrated Plan for the City (LEP), Wollongong City Centre RevitalisationStrategy, Flood Mitigation Works, Lake Illawarra Entrance Improvements, Wollongong City Gateway,Wollongong Foreshore Precinct and the Bushfi re Asset Protection Zone.My thanks to all staff and external auditors who worked on the preparation of these statements,depicting a sound and stable fi nancial position that can provide a fi rm basis for the continued operationsof Council.Rod Oxley PSMChief Executive Offi cerWollongong City CouncilFinancial Report Financial Executive Summary131

Financial CommentaryThe fi nancial statements are prepared by Council to provide information in relation to Council's fi nancialperformance and position. The reports are prepared under accrual accounting principles in accordancewith the requirements of the Local Government Act 1993 (as amended), Australian Accounting Standardsand specifi c requirements of the Department of Local Government as detailed in the Local GovernmentCode of Accounting Practice and Financial Reporting (Update 14). The code has been designed tostandardise fi nancial reporting for local government bodies throughout New South Wales. The signifi cantaccounting policies used in preparing Wollongong City Council's reports are set out in Note 1 to thefi nancial statements.The General Purpose Financial Statements are audited by Council's Auditors, PricewaterhouseCoopers.Council has received an unqualifi ed audit again this year. The audit reports are included in the body of thefi nancial statements.The fi nancial statements are made up of four key fi nancial reports and explanatory notes supporting thereports. The four reports are as follows:1. Income Statement2. Balance Sheet3. Statement of Changes in Equity4. Cash Flow StatementCouncil's financialstatements andreports for the yearended 30th June2006 are preparedin accordance withthe requirementsof the LocalGovernment Act1993 (as amended),AustralianAccountingStandardsand specificrequirements ofthe Department ofLocal Government.Our auditors havesaid that ourfinancial statementsand the attachednotes are fullycompliant.The four reports provide summary level information, however when read in conjunction with theexplanatory notes, provide signifi cant and relevant information for the reader. Each report has its ownpurpose and provides the reader with information as explained below.Financial CommentaryIncome StatementThe Income Statement measures Council's fi nancial performance over the year and shows whether ornot Council has earned suffi cient revenues to support its activities during the year, and whether or not ithas created surpluses to fund additional or replacement assets to service community needs.The Income Statement shows where Council's money comes from (revenue) and how that revenue isconsumed (expenses) in providing the ordinary activities and services of the Council. Expenses are not thesame as cash expenditure or spending in that it only measures the consumption of resources (cash andother assets).The purchase of an asset for example is not a consumption of resource; it is merely a transformation ofan existing cash resource to another resource (asset) which in turn provides benefi t for future periods. Inthe case of an asset that has a limited life such as a vehicle, it is consumed over its life by the organisationto provide service, and this consumption of an asset is reported as an expense in the Income Statementas depreciation.Similarly an expense is recognised under accrual accounting when goods or services that give rise to adebt are delivered to or performed for the organisation, regardless of when the cash is paid. An exampleof this is accrual of employee entitlements such as annual and long service leave. If an employee works fortwelve months and has accrued fi ve weeks annual leave, and 1.3 weeks long service leave, the expenseincluded in the Income Statement is the full cost of employment including the unpaid portion.This represents the amount of resource consumed in dollar terms, even though payment may not berequired for many years.Other signifi cant differences between the accrual concepts of revenue/expenses and cash or fundsconcepts include:The incomestatement showsif we have earnedsufficient revenuesto cover our costsfor the year. Thisyear we recordedan overall deficitor loss. This raisesconcern given thatover past years wehave operated at aloss and brings intoquestion our longterm sustainabilitywithout reductionin expenditure,increase in incomeor both.Financial Report132• Loan funds received are not revenue.• Transfers from reserves are not revenue.• Revenue is recognised when controlled by Council (usually when funds are received or committed) notwhen expended.• Loan repayments are not an expense.• Transfers to reserves are not an expense.• Payments made on termination for employee entitlements are not an expense, as they were alreadyexpensed in the year accrued.If the Income Statement is in a loss situation, this means that Council is not earning suffi cient revenue tocover the costs of its consumption of cash and other assets in providing community amenity and services.A continued trend of loss results will mean that over a period of time Council will not be able to carry out itsexisting levels of service, and maintain and replace its assets (predominately infrastructure assets such asroads, bridges, drainage, parks, buildings, etc) at the time when they need to be replaced.

Wollongong City Council's net operating result from continuing operations was a defi cit of $5.1m for the yearended 30 June 2006. The net operating result before capital grants and contributions was a defi cit of $12.5m.This raises concern given that over past years Council has operated at a loss and brings into question Council'slong term sustainability without a reduction in expenditure, increase in income or both.Additional rating increases were approved by the Minister for Local Government for fi ve years commencing2004-05 however this does not fully fund the continuing growth in volume and breadth of demand for Councilservices and the ever growing backlog of asset maintenance requirements.Balance SheetThe Balance Sheet discloses Council's net accumulated fi nancial worth at the end of the fi nancial year. It showsthe 'value' of assets that Council holds as well as liabilities or claims against these assets.The assets and liabilities are expressed as current or non-current. Current means that these are assets or liabilities:(1) will be expected to be paid or could be converted into cash within the next twelve months or (2) Council doesnot have an unconditional right to defer settlement beyond twelve months.In general, Council's most signifi cant asset is Infrastructure, Property, Plant and Equipment. This asset categoryincludes all of Council's infrastructure assets (such as roads, bridges, and drainage), playing fi elds, parks, buildings,etc, as detailed in Note 9 to the fi nancial statements.Wollongong City Council's Balance Sheet as at 30 June 2006 shows that the overall cash and investment positionhas improved from $76.4m (as at 30 June 2005) to $77.6m and that Council has working capital of$21.2m. The unrestricted current ratio, which assesses the adequacy of working capital and the ability to satisfyshort term obligations, has risen slightly from 174% to 176% and is above the 2006 industry benchmark.The level of debt stood at $19.5m, with $13.3m of this related to a deferred payment for the AdministrationBuilding which will be paid in September 2006. The debt service level of 2.3% is well below the industry benchmarkof 10%.The balance sheetshows the valueof our assets andthe liabilities orclaims againstthese assets. Ourfinancial position issound and stable.Statement of Changes in EquityThe Statement of Changes in Equity summarises the change in Council's net worth. Council's net worth can onlychange as a result of:• A 'profi t' or 'loss' as recorded in the Income Statement;• An increase in the value of non-current assets resulting from a revaluation of those assets. This amount istransferred to an Asset Revaluation Reserve until the asset is sold or a real profi t is realised as opposed to beingbook entry only. The value of all non-current assets must be reviewed each year to ensure that they refl ect theirtrue value in the Balance Sheet.Any movements in other Reserves within this statement are adjusted through Accumulated Surplus.Wollongong City Council's net worth decreased by $5.1m for the year ended 30 June 2006. This was a result oftotal expenses from continuing operations ($162.8m) exceeding total income ($157.7m).Cash Flow StatementThe Cash Flow Statement summarises Council's cash receipts and payments for the fi nancial year and the net'Cash in hand' position.It differs from the Income Statement in that:• It excludes non-cash expenses such as depreciation.• It excludes the accruals taken into account in the Income Statement.• It includes payments or receipts in relation to capital items.• It includes any 'fi nancing' activities such as loan funds received and paid.The Cash Flow Statement has three sections:Cash Flows from Operating Activities - summarises all of the income and expenses in relation to Council'songoing service delivery. It is essential that Council has a cash surplus to ensure that it can maintain its day-to-dayoperations as well as provide funds for future community assets.Cash Flows from Investing Activities - refers to payments for purchases and receipts for sales of property, plantand equipment and investments as well as any receipts for interest earned on investments.Cash Flows from Financing Activities - sets out all activities from 'Financing' which may include receipts andrepayment of loans.Wollongong City Council's cash assets decreased by $36.8m to $7.5m during the year ended 30 June 2006. Inaddition to operating activities which contributed net cash of $25.8m were the proceeds from the sale of assets($3.9m) and new borrowings and advances ($684,000). Cash outfl ows were used to purchase investment securities(437.5m), purchase and construct assets $28.1m), repay borrowings and advances ($227,000), and pay fi nancelease instalments ($1.4m).Council invests its surplus funds in managed funds and >90 day term deposits which are both classed asinvestment assets rather than cash assets (refer Note 6 to the fi nancial statements).Profit and loss(or surplus anddeficit) change thenet worth of anorganisation.Cash flows arecritical to anyorganisation. Ourcash position andflows contributingto it are very strong.Financial CommentaryFinancial Report133

Notes to the AccountsThe Notes to the Accounts provide further information in relation to the rules and assumptions used to preparethe fi nancial statements as well as additional information and detail about specifi c items within the statements.The Notes also advise the reader if there have been any changes to accounting standards, policy or legislationwhich may change the way the statements are prepared.Within the four fi nancial reports, there is a 'Note' column to indicate to which Note the reader can refer foradditional information.Information in the Notes is particularly useful where there has been a signifi cant change from the previous year'scomparative fi gure.Performance MeasurementsNote 13 to the fi nancial statements provides performance measures:Unrestricted Current Ratio - assesses the adequacy of working capital and the ability to satisfy obligations inthe short term for the unrestricted activities of Council.Debt Service Ratio - assesses the degree to which revenues are committed to the repayment of debt.Rates and Annual Charges Coverage Ratio - measures the degree of dependence upon revenues from ratesand annual charges and assesses the security of Council's income.Rates and Annual Charges Outstanding Percentage - assesses the impact of uncollected rates and annualcharges on liquidity and the adequacy of recovery efforts.Financialstatements havemany notesappended to themproviding furtherinformation.The notes aresubject toindependent audit.Key performancemeasures showthe underlyingfinancial wealth ofthe organisation.These measuresare required byour auditors andthe Department ofLocal Government.Sustainable Finances Health CheckCouncil's fi nancial health has been reviewed in reference to the health check model devised by the LocalGovernment Managers Association (LGMA). The Financial Health Check was developed through a consultativeprocess aimed at establishing a tool allowing a council to better assess its fi nancial condition. Following areindicators that are considered key to enabling this assessment to be made. Where appropriate, a colour coding'traffi c light' system (Green, Amber, and Red) rates the relative position of a council's performance.Financial CommentaryRevenue SourcesInformation regarding revenue sources provides the opportunity to understand and track the relative sourcesof revenue received. Monitoring this information will enable Council to better measure and assess the degree ofdependency on particular revenue sources. A further dissection of the information below is available in Note 3 tothe fi nancial statements.Wollongong City Council continues to prudently have a relatively high reliance on rates as a source of income.The accepted benchmark is 50%. Council sought and was successful in gaining approval from the Minister forLocal Government for implementation of a fi ve year rating strategy designed to provide an increase in fundinglevels. The strategy commenced in 2004-05 with the total general income and minimum rate variation being 5%,5%, 5%, 4% and 4% for the next fi ve years respectively.There has been very little change to the proportional make up of total revenue over past years.Revenue from Continuing OperationsFinancial ReportYear ended30/6/2003Year ended30/6/2004Year ended30/6/2005Year ended30/6/2006$'000 % $'000 % $'000 % $'000 %Revenue from continuing operationsRates and Annual Charges 85,492 66 86,683 64 94,884 64 100,090 67User Charges and Fees 17,401 13 18,191 14 19,435 13 18,996 13Investment Revenues 3,817 3 4,235 3 4,555 3 5,375 4Grants - Operating 17,367 13 17,486 13 19,167 13 18,317 12Contributions - Operating 1,748 1 2,223 2 2,448 2 2,291 2Profi t/Loss on Disposalof Assets 1,196 1 396 0 1,838 1 (181) 0Other Revenues 2,814 2 5,448 4 5,523 4 5,224 3Revenue from continuingoperations before capitalamounts 129,835 100 134,661 100 147,850 100 150,112 100Revenue fromContinuingOperations100908070605040302010002-0303-0404-0505-06134

Indicator 1 - Cash/Liquidity Position (After Accounting for External Reserves)The Unrestricted Current Ratio (refer 1. below) aims to measure Council's liquidity and more importantly Council'ssolvency. This indicator enables Council to assess whether debts will be able to be paid as they fall due or whetherarrangements should be put in place to raise additional funds or liquidate assets.Available Cash Assets are defi ned as total cash assets held by Council less any externally restricted assets.This indicator presents the available cash assets as both a dollar value (refer 2(a) below) and a percentage of totalrevenue (refer 3(a) below). This indicator is produced to enable users to better assess the Unrestricted Cash Ratioand the impact of unforeseen commitments.Unrestricted Available Cash Assets takes the above indicator one step further and subtracts both external andinternal restrictions from the total cash assets held. This indicator presents the unrestricted available cash assetsas both a dollar value (refer 2(b) below) and a percentage of total revenue (refer 3(b) below). This indicator highlightscash assets that are completely free of usage restriction and is similar to 'working funds'. Like the Available CashAssets indicator, the Unrestricted Available Cash Assets indicator is used as a guide to interpreting and betterunderstanding the Unrestricted Current Ratio.Wollongong City Council's liquidity is satisfactory. Council can easily pay its debts as they fall due. Adequate fundsare available, providing the capacity to respond to opportunities or react to unforeseen commitments that may arise.Year ended30/6/2003Year ended30/6/2004Year ended30/6/2005Year ended30/6/2006$'000 $'000 $'000 $'000Unrestricted Current RatioUnrestricted Current Ratio 169% 188% 174% 176%Indicator/Local Government Benchmark >2.1 = 1.1 to 2.1 =

Indicator 3 - Asset Renewal ExpenditureAsset Renewal is a ratio of funds spent renewing assets, to annual depreciation of assets. The fi gure shows thatcurrent capital expenditure is 'x' times the current annual depreciation allowance on existing assets.For the twelve month period ending 30 June 2006, capital expenditure was 0.8 times the depreciation allowance.Wollongong City Council is aware of the ongoing need to increase levels of expenditure on maintaining thecondition of assets. The 2004-08 corporate plan introduced a fi ve year program that was designed to reducethe critical shortfall in infrastructure asset funding. The program introduced provided an additional $2.8m perannum for the replacement and maintenance of Recreation, Building and Infrastructure assets with an incrementalincrease of $2m for each of the following years (resulting in a total increase of over $33m).It should be noted that capital expenditure on assets in 2005 includes an amount of $22.6m capitalised toWaste Disposal Assets for the restoration of waste facilities at Whytes Gully ($19.6m) and Helensburgh ($3m).This is in accordance with International Financial Reporting Standards (IFRS). (For further information please referto Note 1 (2.1) and (15), Note 9, Note 21(a) and (b) and Note 22).Year ended30/6/2003Year ended30/6/2004Year ended30/6/2005Year ended30/6/2006Asset Renewal 0.67 1.67 0.84 0.89Indicator/Local Government Benchmark 1.1 =

Indicator 6 - Carryovers of ExpenditureThe existence of carryovers (re-votes) at year end indicates that projects/outcomes were not delivered inaccordance with the corporate (management) plan.A total of $27.8m of works were carried over from 05-06 to 06-07. This total included $4.5m for the ThirroulDistrict Community Centre and Library construction, $1.3 million for the Horsley Child Care Centre and $4.8m forthe Wollongong City Gateway.Year ended30/6/2003Year ended30/6/2004Year ended30/6/2005Year ended30/6/2006% % % %Total Carryovers of Expenditure compared toTotal Annual Expenditure 8 5 11 14Indicator/Local Government Benchmark 5% =Indicator 7 - Accuracy / Timeliness of Financial Data / Budget / ComplianceThe following information is indicative of good business management practices. Council's fi nance function thatrelates well in these indicators will presumably be one that can provide accurate, reliable and timely fi nancialinformation in the other areas of the Financial Health Check.Year ended30/6/2002Year ended30/6/2003Year ended30/6/2004Year ended30/6/2005Year ended30/6/2006Financial bottom line (before capital) matched toforecasts to a level of + or - 10% No No No No NoReceipt of an unqualifi ed audit Yes Yes Yes Yes YesStatements lodged to meet compliance deadline Yes Yes Yes Yes YesMonthly reporting to Management within 5 daysof month end No NoQuarterly statutory reporting within 21 days ofquarter endAnnual statutory reporting within 21 days ofyear endResults notavailableResults notavailableResults notavailableResults notavailable10working daysResults notavailable42working days8.5working daysResults notavailable36working days7.9working days25.5working days35working daysBudgets incorporate a 3 year plan where thesecond year becomes the base for thefollowing year No No No No NoRigour of budget review and then ongoingmonthly/quarterly budget to actualresults analysis Yes Yes Yes Yes YesResponsible Accounting Offi cer formally reportsto Council on the sign off of fi nancial statements- Section 413 Yes Yes Yes Yes YesCouncil has established an Audit Committeecomprising elected members and communityrepresentatives in the interest of best corporategovernance practice Yes Yes Yes Yes Yes5 5 5+ 5+ 5+Indicator/Local Government Benchmark 8 to 10 achieved = 5 to 7 achieved =

Historical Financial Data - Income StatementFinancial CommentaryNotesIncome from continuing operationsRevenue:Rates and annual charges 3a 100,090 94,884 86,683 85,492 82,370 79,532User charges and fees 3b 18,996 19,435 18,191 17,401 17,947 16,941Interest and investment revenue 3c 5,375 4,555 4,235 3,817 2,676 3,646Other revenues 3d 5,224 5,523 5,448 2,814 3,298 2,234Grants and contributions provided for operating purposes 3e,f 20,608 21,615 19,708 19,115 18,961 19,672Grants and contributions provided for capital purposes 3e,f 7,442 6,351 6,863 9,220 10,866 6,564Other Income:Net gain from the disposal of assets 5 - 1,838 396 1,196 1,012 -Total income from continuing operations 157,735 154,201 141,524 139,055 137,130 128,589Expenses from continuing operationsEmployee benefi ts and oncosts 4a 69,356 68,141 61,738 59,538 56,557 51,295Borrowing costs 4b 2,824 2,311 577 238 215 196Materials and contracts 4c 37,739 36,786 31,734 33,250 37,397 36,681Depreciation and amortisation 4d 33,045 32,765 30,304 29,401 28,057 29,711Impairment 4d - - n/a n/a n/a n/aOther expenses 4e 19,678 17,685 22,612 23,349 21,321 19,390Net loss from disposal of assets 5 181 - - - - 802Total expenses from continuing operations 162,823 157,688 146,965 145,776 143,547 138,075Operating result from continuing operations (5,088) (3,487) (5,441) (6,721) (6,417) (9,486)Net operating result for year (5,088) (3,487) (5,441) (6,721) (6,417) (9,486)Net operating result before capital grants and contributions (12,530) (9,838) (12,304) (15,941) (17,283) (16,050)This statement is to be read in conjunction with the attached Notes.Actual2006$'000Actual2005$'000Actual2004$'000Actual2003$'000Actual2002$'000Actual2001$'000This incomestatement reportsour financialperformance for thecurrent reportingperiod and theprevious fivereporting periods.Financial Report138

Historical Financial Data - Balance SheetNotesActual2006$'000AssetsCurrent assetsCash and cash equivalents 6a 7,672 44,449 29,373 35,885 25,245 43,121Investments 6b 57,322 9,500 12,000 17,889 22,324 15,395Receivables 7 10,539 11,610 10,425 7,123 10,711 9,934Inventories - realisable < 12 months 8 154 103 391 108 403 213Inventories - realisable > 12 months 8 - - - - - -Other 8 2,581 1,272 147 1,542 2,097 1,711Assets held for sale (previously non-current) 23 1,357 119 n/a n/a n/a n/aTotal current assets 79,625 67,053 52,336 62,547 60,780 70,374Non-current assetsCash assets 6a - - 15,717 16,944 16,422 -Investments 6b 12,635 22,500 11,500 - - -Receivables 7 2,448 2,009 1,704 1,585 1,393 1,343Inventories 8 5,734 5,734 5,734 6,013 5,734 6,013Infrastructure, property, plant and equipment 9 1,090,458 1,098,236 1,082,383 1,079,825 1,087,554 1,093,014Investments accounted for using the equitymethod 19 - - n/a n/a n/a n/aInvestment property 14 3,260 3,150 n/a n/a n/a n/aOther 8 - - - - - -Total non-current assets 1,114,535 1,131,629 1,117,038 1,104,367 1,111,103 1,100,370Total assets 1,194,160 1,198,682 1,169,374 1,166,914 1,171,883 1,170,774LiabilitiesCurrent liabilitiesPayables 10 15,614 17,207 12,409 13,428 12,978 11,926Interest bearing liabilities 10 14,688 1,429 1,652 2,336 2,260 1,918Provisions - payable < 12 months 10 10,406 8,534 8,555 9,553 8,734 7,966Provisions - payable > 12 months 10 17,706 20,121 n/a n/a n/a n/aTotal current liabilities 58,414 47,291 22,616 25,317 23,972 21,810Non-current liabilitiesPayables 10 - - - - 951 -Interest bearing liabilities 10 4,781 16,550 14,218 3,111 3,457 2,463Provisions 10 31,097 29,888 25,340 25,845 24,141 20,692Total non-current liabilities 35,878 46,438 39,558 28,956 28,549 23,155Total liabilities 94,292 93,729 62,174 54,273 52,521 44,965Net assets 1,099,868 1,104,953 1,107,200 1,112,641 1,119,362 1,125,779EquityRetained earnings 20 849,467 854,552 856,799 862,240 868,961 875,378Revaluation reserves 20 250,401 250,401 250,401 250,401 250,401 250,401Council Equity Interest 1,099,868 1,104,953 1,107,200 1,112,641 1,119,362 1,125,779Minority Equity Interest 19 - - - - - -Total Equity 1,099,868 1,104,953 1,107,200 1,112,641 1,119,362 1,125,779This statement is to be read in conjunction with the attached Notes.Actual2005$'000Actual2004$'000Actual2003$'000Actual2002$'000Actual2001$'000This balance sheetreports our financialposition for thecurrent reportingperiod and theprevious fivereporting periods.Financial CommentaryFinancial Report139

Financial ReportingThe General Purpose Financial Reports have been prepared in accordance with Australian equivalents toInternational Financial Reporting Standards (AIFRS) as they apply to not-for-profi t entities, other authoritativepronouncements of the Australian Accounting Standards Board (AASB), Urgent Issues Group (UIG) ConsensusViews, the Local Government Act and Regulations, the Local Government Code of Accounting Practice andFinancial Reporting and the Local Government Asset Accounting Manual.Compliance with International Financial Reporting Standards (IFRS)AIFRS include certain specifi c provisions relating to not-for-profi t entities that are not included in the InternationalFinancial Reporting Standards. In addition, Australian Accounting Standard AAS 27 Financial Reporting by LocalGovernments also applies. Where AAS 27 confl icts with AIFRS, the requirements of AAS 27 have been applied.Where AAS 27 makes reference to another Australian accounting standard, the new Australian IFRS equivalentstandard will apply. Except to the extent that these special provisions require, these fi nancial statements and notescomply with International Financial Reporting Standards.Council OperationThe corporate review conducted at 31 March 2006, along with projects reintroduced during the June quarterpredicted a projected funds defi cit of $3.3m for the year ending 30 June 2006. The quarterly corporate reviewis generally conducted on a funds basis and acknowledges internal and external restrictions on cash for specifi cpurposes. The effects of non cash transactions, such as depreciation are excluded. The actual result at the end ofthe June quarter was the surplus of $0.1m. Major factors in the improvement against the projected budget wereprojects totalling $2.7m not fi nalised at year end and improvements in income and savings in expenditurecontributing $1.3m. The following is a reconciliation between the Accrual result and the Funds result:Financial OverviewSOURCE OF FUNDS$'000sSurplus (Defi cit) from Operations - Accrual (5,088)Add back non funded transactions included in operations above• Increase in Leave Entitlements (37)• Increase in WC Provision (877)• Increase in Insurance Provision Entitlements 180• Depreciation 33,045• Amortisation of Discount on FV 1,439Sale of Assets (Book Value) 4,125Loan Funds Received 3,088Loan Issues Repaid 15Transfer from Internal Reserves 5,325Transfer from External Reserves 13,712Net Funds Available 54,927APPLICATION OF FUNDSAssets Acquired 30,743Loan Repayments Made 1,598Transfer to Internal Reserves 5,691Transfer to External Reserves 16,164Total Funds Applied 54,196TOTAL FUNDS SURPLUS (DEFICIT) 731Financial Report140

Rates and Annual ChargesCouncil receives its major source of revenue from rates and annual charges. For the year ending 30 June 2006,this represented 67% of income. The state government permitted an increase of 5% in the rate base for the ratingyear 1 July 2005 to 30 June 2006. Land valuations of base date July 2004 were used for rating purposes.Government GrantsGovernment grants also represent a signifi cant portion of Council's income. The majority of these grants aretied to specifi c works and cannot be used for any other purpose. Total income received from grants in 2006 was$22.3m (previous year, 2005 was $22.4m). This represents a percentage of total income in 2006 of 14.2% (previousyear, 2005 was $14.6%). Restricted cash in respect of unspent grants for year ended June 2006 was $5.8 million(previous year, 2005 was $5.8m).Fees and ChargesCouncil cannot change fees that are set by statute. These include fees such as dog registration fees and certainbuilding and development fees. The majority of fees set by Council were increased by 4.5% in the year ending June2006. Before adopting these increases Council gave due consideration to factors such as the cost to Council ofproviding services and the importance of the service to the community.Statement by Councillors and Management Made Pursuant toSection 413 (2)(c) of the Local Government Act 1993 (as amended)The attached General Purpose Financial Reports have been prepared in accordance with:• The Local Government Act 1993 (as amended) and the regulations made thereunder,• The Australian Accounting Standards and professional pronouncements, and• The Local Government Code of Accounting Practice and Financial Reporting.To the best of our knowledge and belief, these reports:• Present fairly Council's operating result and fi nancial position for the year, and• Accord with our 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 Council made on 25 September 2006._________________Cr A DarlingLord Mayor_________________Cr V ZanottoCouncillor_________________R OxleyChief Executive Offi cer_________________S PayneResponsible Accounting Offi cerFinancial ReportFinancial Overview141

Income Statement for the Year Ended 30 June 2006General Purpose Financial StatementsNotes Budget 2006$'000Actual 2006$'000Actual 2005$'000Income from continuing operationsRevenue:Rates and annual charges 3a 100,066 100,090 94,884User charges and fees 3b 20,289 18,996 19,435Interest and investment revenue 3c 4,218 5,375 4,555Other revenues 3d 4,224 5,224 5,523Grants and contributions provided for operating purposes 3e,f 17,819 20,608 21,615Grants and contributions provided for capital purposes 3e,f 7,831 7,442 6,351Other Income:Net gain from the disposal of assets 5 - - 1,838Total income from continuing operations 154,447 157,735 154,201Expenses from continuing operationsEmployee benefi ts and oncosts 4a 69,733 69,356 68,141Borrowing costs 4b 300 2,824 2,311Materials and contracts 4c 34,870 37,739 36,786Depreciation and amortisation 4d 33,168 33,045 32,765Impairment 4d - - -Other expenses 4e 24,172 19,678 17,685Net loss from disposal of assets 5 (82) 181 -Total expenses from continuing operations 162,161 162,823 157,688Operating result from continuing operations (7,714) (5,088) (3,487)Net operating result for year (7,714) (5,088) (3,487)Net operating result before capital grants and contributions (15,545) (12,530) (9,838)This statement is to be read in conjunction with the attached Notes.The incomestatement showsif we have earnedsufficient revenuesto cover our costsfor the year. Thisyear we recordedan overall deficitor loss. This raisesconcern given thatover past years wehave operated at aloss and brings intoquestion our longterm sustainabilitywithout a reductionin expenditure,increase in incomeor both.Financial Report127142

Balance Sheet as at 30 June 2006Notes Actual 2006 $'000 Actual 2005 $'000AssetsCurrent assetsCash and cash equivalents 6a 7,672 44,449Investments 6b 57,322 9,500Receivables 7 10,539 11,610Inventories - realisable < 12 months 8 154 103Inventories - realisable > 12 months 8 - -Other 8 2,581 1,272Assets held for sale (previously non-current) 23 1,357 119Total current assets 79,625 67,053Non-current assetsCash assets 6a - -Investments 6b 12,635 22,500Receivables 7 2,448 2,009Inventories 8 5,734 5,734Infrastructure, property, plant and equipment 9 1,090,458 1,098,236Investments accounted for using the equity method 19 - -Investment property 14 3,260 3,150Other 8 - -Total non-current assets 1,114,535 1,131,629Total assets 1,194,160 1,198,682LiabilitiesCurrent liabilitiesPayables 10 15,614 17,207Interest bearing liabilities 10 14,688 1,429Provisions - payable < 12 months 10 10,406 8,534Provisions - payable > 12 months 10 17,706 20,121Total current liabilities 58,414 47,291Non-current liabilitiesPayables 10 - -Interest bearing liabilities 10 4,781 16,550Provisions 10 31,097 29,888Total non-current liabilities 35,878 46,438Total liabilities 94,292 93,729Net assets 1,099,868 1,104,953EquityRetained earnings 20 849,467 854,552Revaluation reserves 20 250,401 250,401Council Equity Interest 1,099,868 1,104,953Minority Equity Interest 19 - -Total Equity 1,099,868 1,104,953This Statement is to be read in conjunction with the attached Notes.The balance sheetshows the valueof our assets andthe liabilities orclaims against theseassets. Our financialposition is soundand stable.Financial Report General Purpose Financial Statements127143

Statement of Changes in Equity for the Year Ended 30 June 2006NoteRetainedearningsAsset reval.reserveActual 2006 $'000OtherreservesCouncil equityinterestMinorityinterestTotalequityBalance at beginning of thereporting period854,552 250,401 - 1,104,953 - 1,104,953Adjustment on adoption ofAASB 132 and AASB 13921 3 - - 3 - 3Transfers to/from asset revaluation reserve - - - - - -Transfers to/from other reserves - - - - - -Other adjustments - - - - - -Distributions to minority interests 19 - - - - - -Net movements recognised directlyin equity3 - - 3 - 3Net operating result for the year (5,088) - - (5,088) - (5,088)Balance at end of the reporting period 849,467 250,401 - 1,099,868 - 1,099,868General Purpose Financial StatementsNoteRetainedearningsThis statement is to be read in conjunction with the attached Notes.Asset reval.reserveActual 2005 $'000OtherreservesCouncil equityinterestMinorityinterestTotalequityBalance at beginning of thereporting period858,039 250,401 - 1,108,440 - 1,108,440Adjustment on adoption ofAASB 132 and AASB 13921 - - - - - -Transfers to/from asset revaluation reserve - - - - - -Transfers to/from other reserves - - - - - -Other adjustments - - - - - -Distributions to minority interests 19 - - - - - -Net movements recognised directlyin equity- - - - - -Net operating result for the year (3,487) - - (3,487) - (3,487)Balance at end of the reporting period 854,552 250,401 - 1,104,953 - 1,104,953Profit and loss(or surplus anddeficit) change thenet worth of anorganisation.Financial Report144

Cash Flow Statement for the Year Ended 30 June 2006Cash flows from operating activitiesNotes Budget 2006$'000Actual 2006$'000Actual 2005$'000ReceiptsRates and annual charges 100,066 98,959 94,516User charges and fees 20,288 19,115 19,780Investment revenue and interest 4,218 5,581 4,032Grants and contributions 25,650 26,145 28,680Other 4,224 15,189 10,613PaymentsEmployee benefi ts and oncosts (68,902) (69,554) (66,732)Materials and contracts (34,870) (43,934) (33,723)Borrowing costs (300) (1,068) (953)Other (24,173) (24,629) (24,996)Net cash provided by (or used in) operating activities 11 26,201 25,804 31,217Cash flows from investing activitiesReceiptsSale of real estate assets 200 - 619Sale of infrastructure, property, plant and equipment 4,190 3,945 6,123Repayments from deferred debtors - (23) -Other 15 - -PaymentsPurchase of investments (7,657) (37,527) (8,500)Purchase of property, plant and equipment (36,913) (28,062) (29,226)Loans to deferred debtors - - (150)Net cash provided by (or used in) investing activities (40,165) (61,667) (31,134)Cash flows from financing activitiesReceiptsBorrowings and advances 2,491 684 684PaymentsBorrowings and advances (1,589) (227) (218)Lease liabilities - (1,371) (1,190)Net cash provided by (or used in) financing activities 902 (914) (724)Net increase/ (decrease) in cash and cash equivalents (13,062) (36,777) (641)Cash and cash equivalents at beginning of reporting period 11 44,449 44,449 45,090Cash assets at end of reporting period 11 31,387 7,672 44,449Cash flows arecritical to anyorganisation.Our cash positionand flowscontributing to itare very strong.General Purpose Financial StatementsThis statement is to be read in conjunction with the attached Notes.Financial Report145

Note 1 - Significant Accounting Policies1. The Local Government Reporting Entity1.1For the period 1 July 2005 to 30 June 2006, Wollongong City Council had its principal business offi ce at 41Burelli Street, Wollongong, NSW 2500. Wollongong City Council is empowered by the New South Wales LocalGovernment Act (LGA) 1993 and its Charter is specifi ed in Section 8 of the Act.Local governmentis essentially anarm of the stategovernment andis required tocomply with statelegislation for itsadministrativefunctions.Notes to the Financial StatementsFinancial Report1461.2 The General FundIn accordance with the provisions of S409 (1) of the Local Government Act 1993, all money and propertyreceived by Council is held in Council's General Fund unless it is required to be held in Council's Trust Fund.1.3 The Trust FundThe Council is required under the Local Government Act (Section 411) to maintain a separate and distinct TrustFund to account for all moneys and property received by the Council in trust which must be applied only for thepurposes of or in accordance with the trusts relating to those moneys. Trust monies and property subject toCouncil's control have been included in these reports. Trust monies and property held by Council but not subjectto Council's control have been excluded from these reports. A separate statement of moneys held in the TrustFund is available for inspection at the Council's offi ce by any person free of cost.2. Basis of Accounting2.1 ComplianceThe General Purpose Financial Reports have been prepared in accordance with Australian equivalents toInternational Financial Reporting Standards (AIFRS) as they apply to not-for-profi t entities, other authoritativepronouncements of the Australian Accounting Standards Board (AASB), Urgent Issues Group (UIG) ConsensusViews, the Local Government Act and Regulations, the Local Government Code of Accounting Practice andFinancial Reporting and the Local Government Asset Accounting Manual.Compliance with International Financial Reporting Standards (IFRS)AIFRS include certain specifi c provisions relating to not-for-profi t entities that are not included in the InternationalFinancial Reporting Standards. In addition, Australian Accounting Standard AAS 27 Financial Reporting by LocalGovernments also applies. Where AAS 27 confl icts with AIFRS, the requirements of AAS 27 have been applied.Where AAS 27 makes reference to another Australian accounting standard, the new Australian IFRS equivalentstandard will apply. Except to the extent that these special provisions require, these fi nancial statements and notescomply with International Financial Reporting Standards.Application of AASB 1 First-time Adoption of AIFRSThese statements are the fi rst Wollongong City Council fi nancial statements to be prepared in accordance withAIFRS and AASB 1 has been applied in their preparation. Previous fi nancial statements have been prepared inaccordance with the former Australian Generally Accepted Accounting Principles (AGAAP) which differ in certainrespects from AIFRS. When preparing these fi nancial statements, certain accounting and valuation methods appliedin AGAAP have been amended to comply with AIFRS. With the exception of fi nancial instruments, where Councilhas taken the exemption available under AASB 1 to only apply AASB 132 and AASB 139 (standards that relate tofi nancial instruments) from 1 July 2005, the comparative fi gures have been restated to refl ect these adjustments.Reconciliations and descriptions of the effect of transition from previous AGAAP to AIFRS on Council's equity andnet income are given in Note 21.2.2 BasisThe General Purpose Financial Reports have been prepared on the accrual basis of accounting and under thehistorical cost convention, as modifi ed by the revaluation of available for sale assets, fi nancial assets and liabilitiesat fair value through profi t and loss, certain classes of property, plant and equipment and investment property.Employee leave entitlements are shown at nominal rates and at the present value of future cash fl ows.The accounting policies adopted for the reporting period are consistent with those of the previous reporting periodexcept where otherwise indicated.Nothing contained within this report may be taken to be an admission of any liability to any person underany circumstance.2.3 Allocation Between Current and Non-CurrentIn the determination of whether an asset or liability is current or non-current, consideration is given to the timewhen each asset or liability is expected to be settled. The asset or liability is classifi ed as current if it is expectedto be settled within the next twelve months, being the Council's operational cycle. In the case of liabilities whereCouncil does not have the unconditional right to defer settlement beyond twelve months, such as vested longservice leave, the liability is classifi ed as current even if not expected to be settled within the next twelve months.Inventories held for trading are classifi ed as current even if not expected to be realised in the next twelve months.The independentauditor has statedthat the financialstatements andassociated notesfully comply withall necessaryauthoritativeconditions.This financial yearis the first periodthat the adoptionof Australianequivalents toInternationalFinancial ReportingStandards isreflected in ourfinancial reports.The financialstatements andnotes comply withthese standards.

3. Revenue Recognition3.1 Rates and Annual ChargesThe rating period and reporting period for the Council coincide and, accordingly, all rates (and annual charges)levied for the year are recognised as revenues. Uncollected rates are recognised as receivables after providingfor amounts due from unknown owners and postponed rates in accordance with the requirements of the LocalGovernment Act 1993.A provision for doubtful debts on rates has not been established as unpaid rates represent a charge against therateable property that will be recovered when the property is next sold.3.2 General Grants, Contributions and DonationsGrants, donations and other contributions are recognised as revenues when the Council obtains control overthe assets comprising these receipts. Control over granted assets is normally obtained upon their receipt. Wherenotifi cation has been received that a grant has been secured and Council acts in reliance of that notifi cation, controlis deemed at that time.Unreceived contributions over which the Council has control are recognised as receivables.Where grants, contributions and donations recognised as revenues during the reporting period were obtained onthe condition that they be expended in a particular manner or used over a particular period, and those conditionswere undischarged as at the reporting date, the amounts subject to those undischarged conditions are disclosed inthese notes as restricted assets.Also disclosed is the amount of grants, contributions and receivables recognised as revenues in a previousreporting period which were obtained in respect of the Council's operations for the current reporting period.3.3 Contributions Under S94 of the Environmental Planning and Assessment (EPA) Act 1991The Council has obligations to provide facilities from contributions required from developers under the provisionsof S94 of the Environmental Planning and Assessment Act 1991. Contributions received each year are required tobe held as restricted assets until used for the purpose designated in formal contribution plans.These contributions may be expended only for the purposes for which the contributions were required, but theCouncil may, within each area of benefi t, apply contributions according to the priorities established in the relevantcontribution plans and accompanying works schedules.The Council also holds contributions obtained prior to the requirement to have contribution plans in place.These moneys must be applied only for purposes for which they were obtained.3.4 User Charges and FeesUser charges and fees are recognised as revenue when the service has been provided, the payment is received,or when the penalty has been applied, whichever fi rst occurs.A provision for doubtful debt is recognised when collection in full is no longer probable.3.5 Sale of Plant, Property, Infrastructure and EquipmentThe profi t or loss on sale of an asset is determined when control of the asset has irrevocably passed to the buyer.4. Cash and Cash EquivalentsCash and cash equivalents include all amounts readily convertible to cash on hand at Council's option with aninsignifi cant risk of changes in value, with a maturity of three months or less from the date of acquisition.5. Investments and Other Financial AssetsFrom 1 July 2004 to 30 June 2005Council has taken the exemption available under AASB 1 to apply AASB 132 and AASB 139 (standards that relateto fi nancial instruments) only from 1 July 2005. Council has applied previous AGAAP to the comparative informationon fi nancial instruments within the scope of AASB 132 and AASB 139.Adjustments on Transition Date: 1 July 2005The nature of the main adjustments to make this information comply with AASB 132 and AASB 139 are that, withthe exception of held-to-maturity investments and loans and receivables which are measured at amortised cost(refer below), fair value is the measurement basis. Fair value is inclusive of transaction costs. Changes in fair valueare either taken to the income statement or an equity reserve (refer below). At the date of transition (1 July 2005)changes to carrying amounts are taken to retained earnings or reserves.From 1 July 2005Council can classify its investments in the following categories: fi nancial assets at fair value through profi t orloss, loans and receivables, held-to-maturity investments, and available-for-sale fi nancial assets. The classifi cationdepends on the purpose for which the investments were acquired and is determined at initial recognition andre-evaluated at each reporting date. Currently Council has classifi ed its investments as fi nancial assets at fair valuethrough profi t or loss and loans and receivables.Rates and annualcharges is ourmain sourceof income.We receivegrants fromstate and federalgovernments forpriority works andprojects. Usuallywe are required tomatch these dollarfor dollar as aconditionof receivingthe grants.Section 94contributions arepayments fromdevelopers tofund futurepublic works.We havesignificant cashto invest andearn a strong rateof interest on ourinvestments.We alwaysendeavour tomaximise ourinterest earningsand to balancethe associatedrisks.Notes to the Financial StatementsFinancial Report147

5.1. Financial Assets at Fair Value Through Profit or LossThis category has two sub-categories: fi nancial assets held for trading, and those designated at fair value throughprofi t or loss on initial recognition. A fi nancial asset is classifi ed in this category if acquired principally for the purposeof selling in the short term or if so designated by management. The policy of management is to designate a fi nancialasset, if there exists the possibility it will be sold in the short term and the asset is subject to frequent changes in fairvalue. Assets in this category are classifi ed as current assets if they are either held for trading or are expected to berealised within twelve months of the balance sheet date.5.2. Loans and ReceivablesLoans and receivables are non derivative fi nancial assets with fi xed or determinable payments that are not quotedin an active market. They arise when the Council provides money, goods or services directly to a debtor with nointention of selling the receivable. They are included in current assets, except for those with maturities greater thantwelve months after the balance sheet date which are classifi ed as non-current assets. Loans and receivables areincluded in receivables in the balance sheet.5.3. Held-to-Maturity InvestmentsHeld-to-maturity investments are non-derivative fi nancial assets with fi xed or determinable payments and fi xedmaturities that the Council's management has the positive intention and ability to hold to maturity.Notes to the Financial StatementsFinancial Report1485.4. Available-For-Sale Financial AssetsAvailable-for-sale fi nancial assets are non-derivatives that are either designated in this category or not classifi ed inany of the other categories. They are included in non-current assets unless management intends to dispose of theinvestment within twelve months of the balance sheet date.Purchases and sales of investments are recognised on trade-date - the date on which the Council commits topurchase or sell the asset. Investments are initially recognised at fair value plus transaction costs for all fi nancialassets not carried at fair value through profi t or loss. Financial assets are derecognised when the rights to receivecash fl ows from the fi nancial assets have expired or have been transferred and the Council has transferredsubstantially all the risks and rewards of ownership.Available-for-sale fi nancial assets and fi nancial assets at fair value through profi t and loss are subsequentlycarried at fair value. Loans and receivables and held-to-maturity investments are carried at amortised cost usingthe effective interest method. Realised and unrealised gains and losses arising from changes in the fair value ofthe fi nancial assets at fair value through profi t or loss category are included in the income statement in the periodin which they arise. Unrealised gains and losses arising from changes in the fair value of non monetary securitiesclassifi ed as available-for-sale are recognised in equity in the available-for-sale investments revaluation reserve.When securities classifi ed as available-for-sale are sold or impaired, the accumulated fair value adjustments areincluded in the income statement as gains and losses from investment securities.The fair values of quoted investments are based on current bid prices. If the market for a fi nancial asset is notactive (and for unlisted securities), the Council establishes fair value by using valuation techniques. These includereference to the fair values of recent arm's length transactions, involving the same instruments or other instrumentsthat are substantially the same, discounted cash fl ow analysis, and option pricing models refi ned to refl ect theissuer's specifi c circumstances.Council assesses at each balance date whether there is objective evidence that a fi nancial asset or group offi nancial assets is impaired. In the case of equity securities classifi ed as available-for-sale, a signifi cant or prolongeddecline in the fair value of a security below its cost is considered in determining whether the security is impaired.If any such evidence exists for available-for-sale fi nancial assets, the cumulative loss - measured as the differencebetween the acquisition cost and the current fair value, less any impairment loss on that fi nancial asset previouslyrecognised in profi t and loss - is removed from equity and recognised in the income statement. Impairment lossesrecognised in the income statement on equity instruments are not reversed through the income statement.Council has an approved investment policy complying with Section 625 of the Local Government Act. Investmentsare placed and managed in accordance with that policy and having particular regard to authorised investmentsprescribed under the Local Government Investment Order.6. ReceivablesReceivables for rates and annual charges are secured over the subject land, and bear interest at rates determinedin accordance with the Local Government Act 1993 (as amended) and the Regulations and Determinations madethereunder. Other receivables are generally unsecured and do not bear interest.Loans made at concessional interest rates are recognised at their nominal amounts; interest revenues foregoneby the Council effectively being a reduction of interest revenue in the period to which they relate. All receivables arereviewed as at the reporting date and adequate provision made for amounts the receipt of which isconsidered doubtful.

7. InventoriesInventories held in respect of stores have been valued by using the weighted average cost on a continual basis,after adjustment for loss of service potential. Inventories held in respect of business undertakings have been valuedat the lower of cost and net realisable value.Real Estate Assets developments have been classifi ed as Inventory in accordance with AASB 102 and are valuedat the lower of cost or net realisable value. Cost includes the costs of acquisition, development, borrowing andother costs incurred on fi nancing of that acquisition up to the time of sale. The amount by which cost exceeds thenet realisable value has been recognised as an expense.Revenues arising from the sale of property are recognised in the Income Statement when settlement of all theconditions of the contract has been fulfi lled.8. Property, Plant and Equipment8.1 Transitional ProvisionsInfrastructure assets (which were expensed prior to 1 January 1993) have been capitalised in the accounts on a'staged' basis since June 1995. All assets, apart from land under roads have now been brought to account.All non-current assets purchased or constructed are capitalised as soon as the asset is held 'ready for use'.8.2 MaterialityFor assets capitalised since 1 July 2002, the following rules of materiality have been applied where the asset hasan economic life that is determined to be longer than one year:These are the rulesthat determinewhen we bringassets into ourbalance sheet.Plant and equipment Capitalise if value > $5,000Offi ce equipment Capitalise if value > $5,000Furniture and fi ttings Capitalise if value > $5,000Land• Council landCapitalise• open spaceCapitaliseBuildings• 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 were applied where the asset'seconomic life was determined to be longer than one year:Plant and equipment Capitalise if value > $1,500Offi ce equipment Capitalise if value > $1,500Furniture and fi ttings Capitalise if value > $1,500Land• Council landCapitalise• open spaceCapitaliseBuildings• 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 > $1,500Notes to the Financial StatementsFinancial Report149

8.3 Valuation8.3.1 Plant and Equipment, Office Equipment, Furniture and Fittings, Buildingsand Land ImprovementsAll assets as at 30 June 2001 were recorded at deemed cost of acquisition in accordance with the former AAS38 (AASB 1041) paragraph 10.4(a) of the Standard. All assets acquired after this date have been recorded at cost.Pursuant to clause 8.2.1 of the former AAS 36, Council has undertaken current valuations of all buildings.AAS 38 (AASB 1041) and AAS 36 have been superseded by AASB 116 and AASB 101/AASB 108 respectivelywhich commence operation for local government from 1 July 2005.Current ValuationAn independent valuation of buildings, based on Insurance Value as at 6 June 2003, was undertaken by Mr ScottFullarton, registered valuer number 2144, of Scott Fullarton Valuations Pty Ltd.The valuation was $293,918,650 and has not been brought to account as Council has continued to adopt the 'costbasis' for recording this asset class.Our assetsare valued inaccordancewith AustralianAccountingStandards (AAS).8.3.2 Operational LandAll assets as at 30 June 2001 were recorded at deemed cost of acquisition in accordance with the former AAS38 (AASB 1041) paragraph 10.4(a) of the Standard. All assets acquired after this date have been recorded at cost.Pursuant to clause 8.2.1 of the former AAS 36, Council has undertaken current valuations of all buildings.AAS 38 (AASB 1041) and AAS 36 have been superseded by AASB 116 and AASB 101/AASB 108 respectivelywhich commence operation for local government from 1 July 2005.Current ValuationA valuation of operational land based on market value of land only, taking into account the property's zoning andpermitted use, was undertaken as at 30 June 2004 by the Valuer General. The valuation was $115,253,880 andhas not been brought to account as Council has continued to adopt the 'cost basis' for recording this asset class.Notes to the Financial Statements8.3.3 Community LandAll assets as at 30 June 2001 were recorded at deemed cost of acquisition in accordance with the former AAS38 (AASB 1041) paragraph 10.4(a) of the Standard. All assets acquired after this date have been recorded at cost.Pursuant to clause 8.2.1 of the former AAS 36, Council has undertaken current valuations of all buildings.AAS 38 (AASB 1041) and AAS 36 have been superseded by AASB 116 and AASB 101/AASB 108 respectivelywhich commence operation for local government from 1 July 2005.Current ValuationA valuation of community land based on market value of land only, taking into account the property's zoning andpermitted use, was undertaken as at 30 June 2004 by the Valuer General. The valuation was $198,673,820 andhas not been brought to account as Council has continued to adopt the 'cost basis' for recording this asset class.8.3.4 Land Under RoadsLand under roads has not been valued or recognised as an asset in the Balance Sheet. Council has elected not torecognise land under roads in accordance with the deferral arrangements under AASB 1045.8.3.5 Transport Assets (Roads Infrastructure)All transport assets as at 30 June 2001 were recorded at deemed cost of acquisition in accordance with theformer AAS 38 (AASB 1041) paragraph 10.4(a) of the Standard. All transport assets acquired after this date havebeen recorded at cost. AAS 38 (AASB 1041) has been superseded by AASB 116 which commences operation forlocal government from 1 July 2005.Financial Report1508.3.6 Stormwater Drainage AssetsAll stormwater drainage assets as at 30 June 2001 were recorded at deemed cost of acquisition in accordancewith the former AAS 38 (AASB 1041) paragraph 10.4(a) of the Standard. All stormwater drainage assets acquiredafter this date have been recorded at cost. AAS 38 (AASB 1041) has been superseded by AASB 116 whichcommences operation for local government from 1 July 2005.8.3.7 Bulk EarthworksPrior to 1 July 1996, no values have been attributed to the bulk earthworks inherent in the road infrastructure, asCouncil had no reliable method of estimating values. All bulk earthworks since 1 July 1996 and up to 30 June 2001were recorded at deemed cost of acquisition in accordance with the former AAS 38 (AASB 1041) paragraph 10.4(a)of the Standard. All bulk earthworks from 1 July 2001 have been recorded at cost. AAS 38 (AASB 1041) has beensuperseded by AASB 116 which commences operation for local government from 1 July 2005.All buildingsowned by Councilare regularlyvalued by anindependentvaluer.

8.4 Depreciation of Non-Current AssetsAll assets having a limited useful life are systematically depreciated over their useful lives in a manner which refl ectsthe consumption of the service potential embodied in those assets. Depreciation is recognised on a straight-linebasis using a standard range of rates which are reviewed annually.The major depreciation periods are: -VehiclesEarthmoving equipmentOther plant and equipmentRural Fire Service equipmentOffi ce equipmentFurniture and fi ttingsProperty, plant and equipment leasedBuildingsConcrete bridgesRoads infrastructureStormwater drainage infrastructurePlayground equipmentPublic amenitiesSwimming poolLibrary booksLand improvementsBulk earthworksLand - Council ownedLand - Council controlledHeritage assets10 years3 to 10 years6 to 10 years5 years3 to 10 years7 to 10 years5 years33 to 100 years70 years14 to 42 years100 years5 to 10 years50 years33 years6 to 10 years25 to 100 yearsInfi niteInfi niteInfi nite100 years8.5 ImpairmentAssets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amountmay not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amountexceeds its recoverable amount (which is the higher of the asset's fair value less costs to sell or value in use).For assets whose future economic benefi ts are not dependent on the ability to generate cash fl ows, and where thefuture economic benefi ts would be superseded if Council were deprived thereof, the value in use is the depreciatedreplacement cost. In assessing impairment for these assets, a rebuttable presumption is made that the currentreplacement cost exceeds the original cost of acquisition.Assets areconsumed orwear out atdifferent rates andwe apply differentdepreciation ratesto different classesor groupsof assets.Notes to the Financial Statements9. Investment PropertyInvestment property, principally comprising freehold offi ce buildings, is held for long term rental yields and is notoccupied by the Council. Investment property is carried at fair value, representing open-market value determinedannually by external valuers. Changes in fair values are recorded in the income statement as part of other income.10. Assets Held For SaleNon-current assets are classifi ed as held for sale and stated at the lower of their carrying amount and fair valueless costs to sell if their carrying amount will be recovered principally through a sale transaction rather than throughcontinuing use. The exception to this is plant and motor vehicles which are turned over on a regular basis - theseare retained in property, plant and equipment.Non-current assets are not depreciated or amortised while they are classifi ed as held for sale.Non-current assets classifi ed as held for sale are presented separately from the other assets in the Balance Sheet.Investmentproperties arecarried at fairvalue. Thisclass ofnon-currentasset isseparatelydisclosed on thebalance sheet.Assets currentlyavailable for saleare disclosedas a separateclass of currentasset on thebalance sheet.Financial Report151

Notes to the Financial Statements11. Payables and Other Current Liabilities11.1 Goods and ServicesPayables are amounts due to external parties for the supply of goods and services and are recognised as liabilitieswhen the goods and services are received. Creditors are normally paid 30 days after the month of invoice. Nointerest is payable on these amounts.11.2 Payments Received in Advance and DepositsAmounts received from external parties in advance of service delivery, and security deposits held against possibledamage to Council assets, are recognised as liabilities until the service is delivered or damage reinstated, or theamount is refunded as the case may be.12. BorrowingsLoans are carried at their principal amounts which represent the present value of future cash fl ows associated withservicing the debt.13. Employee EntitlementsEmployee entitlements are accrued on a pro-rata basis for annual leave and long service leave in respect ofservices provided by employees up to the reporting date in accordance with AASB 119. Council also has a liabilityto some employees in respect of sick leave entitlements accrued prior to 1994 and untaken rostered days. Suchaccruals are assessed as at each reporting date, having regard to current rates of pay and other factors includingexperience of employee departures, projected employee rates of pay and their periods of service.The Standard requires liabilities in respect of wages and salaries, annual leave and sick leave (regardless ofwhether they are expected to be settled within twelve months of reporting date) to be measured at their'nominal amounts'.The Standard also requires employee benefi ts liabilities (other than wages and salaries, annual leave and sick leave)expected to be settled within twelve months of reporting date to be measured at their 'nominal amounts'. Thenominal basis of measurement uses remuneration rates that Council expects to pay as at each reporting period anddoes not discount cash fl ows to their present value.Employee benefi t liabilities (other than wages and salaries, annual leave and sick leave) expected to be settledmore than twelve months after reporting date to be measured at 'present value'. The Standard requires the marketyields on national government bonds to be used in determining the present value of employee benefi t liabilities.Where Council does not have the unconditional right to defer settlement of employee entitlements beyond twelvemonths, the liability is recognised as a current liability.The superannuation expense for the year is the amount of the contribution the Council makes to the variousstatutory superannuation plans, which provide benefi ts to its employees.The following disclosures are made pursuant to AASB 119:The Council makes employer superannuation contributions in respect of its employees to the Local GovernmentSuperannuation Scheme. The Scheme 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 based on a fi xed percentage of employee earnings in accordance withSuperannuation Guarantee Legislation (9% in both 2005-06 and 2004-05). No further liability accrues to theemployer as the superannuation benefi ts accruing to employees are represented by their share of the net assets ofthe Fund.Defined Benefit MembersCouncil makes employer contributions to the defi ned benefi ts categories of the Scheme at rates determined bythe Scheme's Trustee. The rate is currently 0.95 times members' contributions (nil in 2004-05). Employees alsomake member contributions to the Fund. As such, assets accumulate in the Fund to meet the member's benefi t, asdefi ned in the Trust Deed, as they accrue.The Fund's Defi ned Benefi t Plan is a multi-employer sponsored plan. As the Fund's assets and liabilities arepooled and are not allocated by employer, the Actuary is unable to allocate benefi t liabilities, assets and costsbetween employers. As provided by AASB 119.32(b), Council does not use defi ned benefi t accounting forthese contributions.Employeeentitlementsare accrued fordifferent types ofleave and putaside as a liabilityand paidwhen required.Financial Report152

14. LeasesLease arrangements have been accounted for in accordance with AASB 117; Leases.The Council's rights and obligations under fi nance leases, which are leases that effectively transfer to Councilsubstantially all of the risks and benefi ts incident to ownership of the leased items, are initially recognised as assetsand liabilities equal in amount to the present value of the minimum lease payments. The assets are disclosed asassets under lease, and are amortised to expense over the period during which the Council is expected to benefi tfrom the use of the leased assets. Leased assets are being amortised over periods ranging from three to fi ve years.Minimum lease payments are allocated between interest expense and reduction of the lease liability, according tothe interest rate implicit in the lease.Lease liabilities are allocated between current and non-current components. The principal component of leasepayments due on or before the end of the succeeding year is disclosed as a current liability and the remainder ofthe lease liability is disclosed as a non-current liability.In respect of operating leases, where the lessor substantially retains all of the risks and benefi ts incident toownership of the leased items, lease payments are charged to expense over the lease term.15. Provisions for Close Down and Restoration and For Environmental Clean UpCosts – Waste FacilitiesClose down and restoration costs include the dismantling and demolition of infrastructure and the removal ofresidual materials and remediation of disturbed areas. Estimated close down and restoration costs are providedfor in the accounting period when the obligation arising from the related disturbance occurs, whether this occursduring the development or during the operation phase, based on the net present value of estimated future costs.Provisions for close down and restoration costs do not include any additional obligations which are expected toarise from future disturbance.The costs are estimated on the basis of a closure plan. The cost estimates are calculated annually during the lifeof the operation to refl ect known developments, eg updated cost estimates and revisions to the estimated lives ofoperations, and are subject to formal review at regular intervals.Close down and restoration costs are a normal consequence of waste facility operations, and the majority of closedown and restoration expenditure is incurred at the end of the life of the operations. Although the ultimate cost tobe incurred is uncertain, Council estimates the respective costs based on feasibility and engineering studies usingcurrent restoration standards and techniques.The amortisation or 'unwinding' of the discount applied in establishing the net present value of provisions ischarged to the income statement in each accounting period. The amortisation of the discount is shown as aborrowing cost. Other movements in the provisions for close down and restoration costs, including those resultingfrom new disturbance, updated cost estimates, changes to the estimated lives of operations and revisions todiscount rates are capitalised within property, plant and equipment. These costs are then depreciated over the livesof the assets to which they relate.Where rehabilitation is conducted systematically over the life of the operation, rather than at the time of closure,provision is made for the estimated outstanding continuous rehabilitation work at each balance sheet date and thecost is charged to the income statement.Provision is made for the estimated present value of the costs of environmental clean up obligations outstandingat the balance sheet date. These costs are charged to the income statement. Movements in the environmentalclean up provisions are presented as an operating cost, except for the unwind of the discount which is shown as aborrowing cost. Remediation procedures generally commence soon after the time the damage, remediation processand estimated remediation costs become known, but may continue for many years depending on the nature of thedisturbance and the remediation techniques.As noted above, the ultimate cost of environmental remediation is uncertain and cost estimates can vary inresponse to many factors including changes to the relevant legal requirements, the emergence of new restorationtechniques or experience at other locations. The expected timing of expenditure can also change. As a result therecould be signifi cant adjustments to the provision for close down and restoration and environmental clean up, whichwould affect future fi nancial results.Finance leasesare an effectivemeans offunding thepurchase ofassets.Provisions allowus to prepare inadvance for thecost to close downand restorewaste facilities.Notes to the Financial Statements16. Self InsuranceCouncil has determined to self-insure for various risks including public liability and professional indemnity.A provision for self-insurance has been made to recognise outstanding claims the amount of which is detailed inNote 10.17. Budget InformationThe Income Statement, Statement of Cash Flows and Note 2 provide budget information of revenues andexpenditures by type and for each of the major activities of Council. Budget fi gures presented are those approvedby Council at the beginning of the fi nancial year and do not refl ect Council approved variations throughout the year.Short explanations of the most signifi cant variations are given in Note 16.The budgetis the singlemost importantbenchmarkagainst whichwe measureperformance.Financial Report153

18. RoundingIn accordance with the Code of Accounting Practice all amounts shown in the Financial Statements have beenrounded to the nearest thousand dollars and are in Australian currency.19. Comparative FiguresWhere necessary, comparative fi gures have been adjusted to conform with changes in presentation in thecurrent year.20. New Accounting Standards and Urgent Issue Group (UIG) InterpretationsCertain new accounting standards and UIG interpretations have been published that are not mandatory for 30June 2006 reporting periods. Council's assessment of the impact of these new standards and interpretations is setout below.20.1 UIG 4 Determining Whether an Asset Contains a LeaseUIG 4 is applicable to annual periods beginning on or after 1 January 2006. Council has not elected to adopt UIG4 early. It will apply UIG 4 in its 2007 fi nancial statements and the UIG 4 transition provisions. Council will thereforeapply UIG 4 on the basis of facts and circumstances that existed as of 1 July 2006. Implementation of UIG 4 is notexpected to change the accounting for any of Council's current arrangements.20.2 (ii) UIG 5 Rights to Interests Arising From Decommissioning, Restoration andEnvironmental Rehabilitation FundsCouncil does not have interests in decommissioning, restoration and environmental rehabilitation funds.This interpretation will not affect Council's fi nancial statements.Notes to the Financial Statements20.3 AASB 2005-9 Amendments to Australian Accounting Standards[AASB 4, AASB 1023, AASB 139 and AASB 132]AASB 2005-9 is applicable to annual reporting periods beginning on or after 1 January 2006.The amendments relate to the accounting for fi nancial guarantee contracts. Council has not entered into anyfi nancial guarantee contracts and there will be no effect on Council's fi nancial statements.20.4 AASB 7 Financial Instruments: Disclosures and AASB 2005-10 Amendments toAustralian Accounting Standards [AASB 132, AASB 101, AASB 114, AASB 117, AASB 133,AASB 139, AASB 1, AASB 4, AASB 1023 and AASB 1038]AASB 7 and AASB 2005-10 are applicable to annual reporting periods beginning on or after 1 January 2007.The Council has not adopted the standards early. Application of the standards will not affect any of the amountsrecognised in the fi nancial statements, but will impact the type of information disclosed in the fi nancial instruments.20.5 UIG 6 Liabilities Arising From Participating in a Specific Market– Waste Electrical and Electronic EquipmentUIG 6 is applicable to annual reporting periods beginning on or after 1 December 2006. Council has not sold anyelectronic or electrical equipment on the European market and has not incurred any associated liabilities.This interpretation will not affect Council's fi nancial statements.20.6 AASB 2005-6 Amendments to Australian Accounting Standards [AASB 121]AASB 2005-6 is applicable to annual reporting periods ending on or after 31 December 2006. The amendmentrelates to monetary items that form part of a reporting entity's net investment in a foreign operation. It removes therequirement that such monetary items had to be denominated either in the functional currency of the reporting entityor the foreign operation. Council does not have any monetary items forming part of a net investment in a foreignoperation. The amendment to AASB 121 will therefore have no impact on the fi nancial statements.Financial Report154

Note 2 (a) - FunctionsRevenues, expenses and assets have been directly attributed to the following functions and activitiesIncome from continuing operationsOriginalbudget 2006$'000Actual2006$'000Actual2005$'000Expenses from continuing operationsOriginalbudget 2006$'000Actual2006$'000Actual2005$'000Corporate Governance - 9 500 1,438 3,043 1,995Community and Cultural Services 2,887 3,242 3,233 7,063 7,022 7,127Commercial Developments 9,629 7,580 9,611 5,126 4,597 4,931City Planning and Development 5,917 4,449 5,181 9,489 9,317 10,185Environmental Management 5 229 64 1 462 524Environment and Health 2,246 1,631 1,691 4,165 3,674 3,788Infrastructure 5,135 7,727 8,162 50,183 55,695 52,434Library Services 607 752 853 6,093 6,118 6,212Organisational Services 3,238 4,429 4,291 36,144 32,260 28,698Recreation and Natural Resources 4,783 4,778 4,786 24,169 22,236 23,344Waste Management 19,020 4,965 4,402 18,372 18,399 18,450Totals - functions 53,467 39,791 42,774 162,243 162,823 157,688General purpose revenues 101,062 117,944 111,427 - - -Totals 154,529 157,735 154,201 162,243 162,823 157,688Revenues,expenses andassets can bebroken down intokey managementareas, calledfunctions andactivities (asreported inthe 2005-09corporate plan).This table showshow we divide ourbudget betweenthese areas andwhere we actuallyspent orreceived monies.Revenues, expenses and assets have been directly attributed to the following functions and activitiesOriginalbudget 2006$'000Operating result fromcontinuing operationsActual2006$'000Actual2005$'000Grants included inincome2006$'0002005$'000Total assets held(current andnon-current)2006$'0002005$'000Corporate Governance (1,438) (3,034) (1,495) - 500 32 33Community and Cultural Services (4,176) (3,780) (3,894) 1,868 1,801 46,837 45,758Commercial Developments 4,503 2,983 4,680 260 140 60,220 59,267City Planning and Development (3,572) (4,868) (5,004) 306 775 731 758Environmental Management 4 (233) (460) 229 54 298 -Environment and Health (1,919) (2,043) (2,097) 10 46 1,908 1,958Infrastructure (45,048) (47,968) (44,272) 3,735 3,433 730,191 735,193Library Services (5,486) (5,366) (5,359) 409 563 5,505 5,630Organisational Services (32,906) (27,831) (24,407) 130 192 98,521 95,722Recreation and Natural Resources (19,386) (17,458) (18,558) 210 329 216,108 220,463Waste Management 648 (13,434) (14,048) - - 33,809 33,900Notes to the Financial StatementsTotals - functions (108,776) (123,032) (114,914) 7,157 7,833 1,194,160 1,198,682General purpose revenues 101,062 117,944 111,427 15,097 14,552 - -Totals (7,714) (5,088) (3,487) 22,254 22,385 1,194,160 1,198,682The above functions are those adopted by Wollongong City Council.Financial Report155

Note 2 (b) - Components of FunctionsThe activities relating to Council functions reported on in Note 2 (a) are as follows:Corporate GovernanceExecutive ManagementThese are thefunctions asper the 2005-09corporate planagainst whichwe report.City Planning and DevelopmentExecutive Management, Economic Development, Strategic Planning, Traffi c and Transport, DevelopmentAssessment, Building Compliance, Subdivisions.InfrastructureBuildings, Operational Support, Emergency Services, Civil Infrastructure Planning and Programming,Construction and Maintenance, Technical Support, Design, Floodplain Management.Environment and HealthEnvironment, Health, Ranger Services.Commercial DevelopmentCommercial Business, Property Services.Waste ManagementCollection, Recycling and Disposal.Recreation and Natural ResourcesCity Parks, Recreation, Conservation and Natural Resources.Notes to the Financial StatementsCommunity and Cultural ServicesYouth Services, Community Development, Aged and Disabled, Community Facilities, Cultural Development.Library ServicesLibrary.Organisational ServicesAdministration, Legal and Risk, Information Technology, Marketing, Financial Management, Land Information,Human Resources, Communications and Public Relations, Corporate Development.Environmental ManagementEnvironmental Fund.Financial Report156

Note 3 - Revenues from Continuing Operations2006 $'000 2005 $'000(a) Rates and annual chargesOrdinary rates• Residential 55,649 52,589• Farmland 316 326• Mining 684 833• Business 28,101 26,628Total ordinary rates 84,750 80,376Special rates• Mall 736 701Total special rates 736 701Annual charges (pursuant to s.496 and s.501)• Domestic waste management services 14,604 13,807Total annual charges 14,604 13,807Total rates and annual charges 100,090 94,884(b) User charges (pursuant to s. 502)• Domestic waste management services 796 709• Other waste management services(not domestic) 3,614 3,210Total user charges 4,410 3,919Fees• RTA charges (state roads not controlled by Council) - 455• Regulatory/statutory 3,775 4,660• Crematorium and cemeteries 1,300 1,194• Car parking 319 272• Library 41 36• Marketing 689 755• Tourist parks 3,618 3,387• Recreation 3,191 3,054• Dining room 87 100• Hire charges 401 398• Other 1,165 1,205Total fees 14,586 15,516Total user charges and fees 18,996 19,435(c) Interest and investment revenueInterest on overdue rates and charges 445 367Interest on cash assets and investments• externally restricted 1,222 1,076• unrestricted 3,690 3,112Premiums recognised on fi nancial instruments 17 -Amortisation of discounts and premiums 1 -Gross interest and investment revenue 5,375 4,555Less: interest deducted from capitalised borrowing costs - -Total interest and investment revenue 5,375 4,555(d) Other revenuesEx gratia payments in lieu of rates 8 4Fair value adjustments - investment property 110 300Fines 1,282 1,367Insurance claims 370 392This note providesgreater detail onrevenues received.Lease rental 1,619 1,427Legal fees recovery (rates) 112 91157Notes to the Financial StatementsFinancial Report

Note 3 - Revenues from Continuing Operations (cont.)2006 $'000 2005 $'000(d) Other revenues (cont.)Sales - General 315 577Sundry debtor income 378 489Outgoings reimbursement 359 275Other reimbursements 61 61Sponsorship and promotional income 113 182Other 497 358Total other revenues 5,224 5,523Notes to the Financial StatementsFinancial Report158OperatingCapital2006 $'000 2005 $'000 2006 $'000 2005 $'000(e) GrantsGeneral purpose (untied)• Financial assistance 12,926 12,355 - -• Pensioner rates subsidies (general) 1,753 1,765 - -Specifi c purpose• Pensioner rates subsidies (general)- Domestic waste management 418 432 - -• Employment and training programs 130 198 - -• Heritage and cultural services 44 - - -• Bushfi re and emergency services 219 195 - -• Roads to recovery - - 1,535 1,691• Community services 1,795 1,789 - -• Floodplain management - - - 92• Library 408 354 - 200• Revegetation and restoration - 76 - -• Voluntary purchase scheme - 109 453 932• Windstorm damage - - - 266• Wollongong LEP review 83 153 - -• Asset protection zone - 353 - -• Brandon Park - 500 - -• Andrew Lysaght Park - 140 - -• Land use strategy 20 200 - -• Traffi c management 120 - - -• Road, pedestrian and cycleway safety 107 - - -• Natural resource management and protection 213 - 45 -• Tourism projects - - 341 -• Flood mitigation 18 - 1,293 -• Stormwater management 48 - - -• Parks and open spaces - - 125 -• Cycleways - - 67 -• Sportsfi elds - - 56 -• Other 15 548 21 37Total grants 18,317 19,167 3,936 3,218Comprising• Commonwealth funding 13,104 12,517 1,535 1,691• State funding 5,213 6,650 2,401 1,527• Other funding - - - -18,317 19,167 3,936 3,218

Note 3 - Revenues from Continuing Operations (cont.)OperatingCapital2006 $'000 2005 $'000 2006 $'000 2005 $'000(f) ContributionsDeveloper contributionsSection 94 - 112 259 1,636Section 94A levies - - 2,202 -RTA contributions 903 1,156 392 845Dept Education and Training contribution - - - 60Street lighting subsidy 387 377 - -Parks and open spaces - - 55 -Sportsfi elds - - 30 -Community projects 241 371 - -Waste promotion education 140 132 - -Botanic garden 1 23 23 23Otford Road restoration works - 124 - -Contributed bushfi re assets - - 142 296West Dapto planning 440 - - -Library 91 84 - -Rural Fire Service - - 25 -Flood mitigation - - 327 -Other 88 69 51 273Total contributions 2,291 2,448 3,506 3,133Total grants and contributions 20,608 21,615 7,442 6,351(g) Restrictions relating to grants and contributionsGrants and contributions which were obtained on the condition that they be expended for specifi ed purposes or in a futureperiod, but which are not yet expended in accordance with those conditions, are as follows:2006$'0002005$'000Grants Contrib Grants ContribUnexpended at the close of the previousreporting period 5,795 19,658 5,158 18,060Less: expended during the current period fromrevenues recognised in previous reportingperiodsSection 94/64 developer contributions - 2,528 - 1,456Roads infrastructure - 20 - 80Other 1,798 - 1,671 -3,997 17,110 3,487 16,524Plus: amounts recognised as revenues inthis reporting period but not yet expended inaccordance with the conditionsSection 94/64 developer contributions - 3,546 - 2,823Roads infrastructure - 169 - 311Other 1,806 - 2,308 -Unexpended at the close of this reportingperiod and held as restricted assets5,803 20,825 5,795 19,658Net increase (decrease) in restrictedassets in the current reporting period8 1,167 637 1,598Financial Report Notes to the Financial Statements159

Note 4 - Expenses from Continuing OperationsNotes to the Financial Statements(a) Employee benefits and on costs2006 $'000 2005 $'000Salaries and wages 64,473 64,216Employee leave entitlements 2,342 2,746Superannuation 4,754 2,994Workers compensation insurance 388 1,110Fringe benefi ts tax 354 223Training costs (excluding salaries) 855 697Other 406 500Less: capitalised and distributed costs (4,216) (4,345)Total employee costs expensed 69,356 68,141Total number of employees(Full time equivalent at end of reporting period)1,009 1,092(b) Borrowing costsInterest on overdraft 2 1Interest on loans 56 66Charges on fi nance leases 326 202Interest on other debts 684 684Discounts on fi nancial instruments transactions 317 -Unwinding of present value discounts and premiums 1,439 1,358Gross borrowing costs expensed 2,824 2,311Less: borrowing costs capitalised - -Total borrowing costs expensed 2,824 2,311(c) Materials and contractsRaw materials and consumables 13,394 14,209Contractor and consultancy costs 37,635 35,688Auditor's remuneration• Audit services 64 54• Other services 23 6• Other auditors 124 135Legal expenses• Planning and development 216 406• Other legal expenses 2,231 1,114Operating lease rentals - cancellable - -Operating lease rentals - non-cancellable• Minimum lease payments 1,124 348• Contingent rentals - -Less: capitalised and distributed costs (17,072) (15,174)Total materials and contracts 37,739 36,786This note providesgreater detail onhow we spentour budget.Financial Report160

Note 4 - Expenses from Continuing Operations (cont.)2006 $'000 2005 $'000(d) Depreciation, amortisation and impairmentPlant and equipment 2,157 2,379Offi ce equipment 1,571 1,841Furniture and fi ttings 407 430Leased property, plant and equipment 1,306 1,297Land improvements 4,819 4,776Buildings 1,240 1,214Other structures 952 720Infrastructure• Roads, bridges and footpaths 16,715 16,449• Stormwater drainage 1,447 1,429Other assets• Heritage collections 5 5• Library books 1,017 900• Other 278 194Future reinstatement costs• Waste facilities 1,131 1,131Less: capitalised and distributed costs - -Total depreciation, amortisation and impairment 33,045 32,765Allocation between depreciation, amortisation and impairment isshown in Note 9(e) Other expensesAdvertising 316 310Bad and doubtful debts 12 15Insurances 2,181 3,050Light, power and heating 1,177 1,150Mayoral allowance 59 57Members' fees and allowances 297 279Members' expenses 66 71Street lighting 2,318 2,252Telephone and communications 949 886Water rates 433 584Postage 353 357Valuer general fees 241 240Contributions and donations 7,254 5,836Provision for self insurance claims 180 (702)EPA levy 1,722 1,494Asset write-offs - 38Other 2,263 1,832Less: capitalised and distributed costs (143) (64)Total other expenses 19,678 17,685Financial Report Notes to the Financial Statements161

Note 5 - Net Gain or Loss on Disposal of AssetsNotes to the Financial Statements2006 $'000 2005 $'000Gain (or loss) on disposal of propertyProceeds from disposal 506 2,051Less: carrying amount of assets sold 243 270Gain (loss) on disposal 263 1,781Gain (or loss) on disposal of infrastructure,plant and equipmentProceeds from disposal 3,439 4,072Less: carrying amount of assets sold 3,883 4,355Gain (loss) on disposal (444) (283)Gain (or loss) on disposal of real estate assetsheld for saleProceeds from sales - 619Less: cost of sales - 279Gain (loss) on disposal - 340Gain (or loss) on disposal of investment propertyProceeds from disposal - -Less: carrying value of investment property - -Gain (Loss) on disposal - -Gain (or loss) on disposal of financial assetsProceeds from disposal - -Less: carrying value of fi nancial assets - -Gain (Loss) on disposal - -Net gain (or loss) from disposal of assets (181) 1,838This note detailsthe gain or loss onthe disposalof assets.Financial Report162

Note 6 - Cash Assets and Investments2006 $'000 2005 $'000Current Non-current Current Non-current(a) Cash and cash equivalentsCash at bank and on hand (1,008) 1,034Deposits at call 4,680 1,650Short term deposits and bills, etc 4,000 41,765Other - -Total 7,672 44,449This note showshow we invest oursurplus cash.Cash assets comprise highly liquid investments with short periods to maturity subject to insignifi cant risk of changes of value.Cash assets subject to external restrictions that are not expected to be discharged during the next reporting period are classifi edas non-current.(b) InvestmentsSummaryFinancial assets at fair value through profi t and loss 57,322 12,635 9,500 22,500Held-to-maturity investments - - - -Available for sale fi nancial assets - - - -Total 57,322 12,635 9,500 22,500Financial assets at fair value through profitand lossAt beginning of year 9,500 22,500 9,500 22,500Adjustment on adoption ofAASB 132 and AASB 139431 - - -Revaluation to income statement (289) - - -Additions 38,825 - - -Disposals (1,010) - - -Transfers current/non-current 9,865 (9,865) - -At end of year 57,322 12,635 9,500 22,500Held for trading:• Managed funds 43,088 - 8,500 -• CDOs 12,224 3,526 - 22,500• FRNs 2,010 9,109 1,000 -• Equity linked notes - - - -57,322 12,635 9,500 22,500The permitted forms of investment in fi nancial instruments of the Council are defi ned in an order made by the Minister of LocalGovernment on 15 July 2005, and may broadly be described as 'Trustee Securities'. Accordingly, credit risk is considered to beinsignifi cant. Deposits and bills are with, or have been accepted by, banks and credit unions and bear various rates of interestbetween 5.8% and 5.9% (2005 - 5.6% and 6.0%). NCDs, CDOs, FRNs and managed funds are all with organisations with creditratings that comply wiith the Minister's Order and bear various rates of rates of return between 4.5% and 7.4% (2005 - 6.1%and 7.1%).(c) Restricted cash, cash equivalentsand investmentsCash and cash equivalents 7,672 - 44,449 -Investments 57,322 12,635 9,500 22,500Total cash assets and investment securities 64,994 12,635 53,949 22,500External restrictions 33,048 12,635 20,951 22,500Internal restrictions 19,963 - 19,663 -Unrestricted 11,983 - 13,335 -64,994 12,635 53,949 22,500This note showsthe restrictionson our cash andinvestments.Notes to the Financial StatementsFinancial Report163

Note 6 - Cash Assets and Investments (cont.)Details of movements and utilisation of restricted cash assetsand investment securitiesNotesOpening balance30 June 2005$'000Transfers torestriction$'000MovementsTransfers fromrestriction$'000Closing balance30 June 2006$'000External restrictionsIncluded in liabilitiesUnexpended loansAdministration building 17 11,416 683 - 12,09911,416 683 - 12,099Other• Developer contributions 19,288 3,467 2,448 20,307• RTA contributions 368 170 20 518• Unexpended grants 5,795 1,806 1,798 5,803• Domestic waste management 4,449 2,755 2,218 4,986• Private subsidies 2,135 348 513 1,97032,035 8,546 6,997 33,584Total external restrictions 43,451 9,229 6,997 45,683External restrictions arise pursuant to section 409(3) of the Local Government Act, the Local Government (FinancialManagement) Regulation 1999 and other applicable legislation. Further information relating to developer contributions isprovided in Note 17 and unexpended grants in Note 3. Amounts raised by special rates or for domestic waste managementmay only be used for those purposes.Notes to the Financial StatementsInternal restrictions• Property development 1,406 315 1,149 572• Building maintenance 4,104 2,000 1,620 4,484• Future projects/property development 11,013 269 501 10,781• Beaton Park athletics track 273 30 22 281• Flood mitigation works 875 - 443 432• North Dalton Park development 172 35 6 201• Extraordinary insurance claims 404 - 287 117• Community safety 278 214 187 305• Litter infringements 11 - - 11• Disabled parking infringements 27 24 13 38• Future super contributions 1,000 972 - 1,972• Sports priority program 100 150 96 154• MacCabe Park development - 150 - 150• Deferred projects - 465 - 465Total internal restrictions 19,663 4,624 4,324 19,963Internal restrictions arise pursuant to resolutions of Council to set aside reserves of cash resources either relating to liabilitiesrecognised in these reports or to fund future expenditure for the stated purpose. Such reserves are not permitted to exceed theamounts of cash assets and cash investments not otherwise restricted.Financial Report164

Note 7 - Receivables2006 $'000 2005 $'000Current Non-current Current Non-currentPurposeRates and annual charges 2,830 2,365 2,190 1,874Interest and extra charges 692 - 565 -User charges and fees 3,068 - 2,971 -Accrued interest on investments 91 - 814 -Accrued revenues 503 - 994 -Deferred debtors 15 83 15 135Government grants and subsidies 2,373 - 2,681 -Private subsidies 79 - 79 -GST refund due from ATO 823 - 1,244 -Other 147 - 137 -Total 10,621 2,448 11,690 2,009Less: provision for doubtful debts• Rates and annual charges - - - -• User charges and fees 82 - 80 -10,539 2,448 11,610 2,009Externally restricted receivablesDomestic waste management 685 - 617 -Total externally restricted receivables 685 - 617 -Unrestricted receivables 9,854 2,448 10,993 2,009Total receivables 10,539 2,448 11,610 2,0091. Rates and Annual ChargesRates are secured by underlying properties. Interest is charged on overdue rates at 9% (2005 9%).Rates were due for payment on 31 August 2005, 30 November 2005, 28 February 2006 and 31 May 2006.Overdue rates are those not paid within one day of the due date. The amount of overdue debts on which interest ischarged is $5,194,680 (2005 $4,522,551).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 in respect of the class of debtor has already been provided in an amount of $82,075.3. Government Grants and SubsidiesGovernment grants and subsidies have been guaranteed.4. Private SubsidiesPrivate works have only been undertaken where a deposit has been received and the works are secured againstthose deposits.This note detailsmonies owedto Council.Notes to the Financial StatementsFinancial Report165

Note 8 - Inventories and Other Assets2006 $'000 2005 $'000Current Non-current Current Non-currentInventoriesReal Estate (refer below) - 5,734 - 5,734Stores and Materials 154 - 103 -Total inventories 154 5,734 103 5,734Other assetsPrepayments 2,581 - 1,272 -Total Other Assets 2,581 - 1,272 -Real estate developments(Valued at the lower of cost and net realisable value)Residential - 5,734 - 5,734Total real estate held for sale - 5,734 - 5,734Represented by:Acquisition costs - 892 - 892Other properties - book value - 4,842 - 4,842- 5,734 - 5,734Less: provision for under-recovery - - - -Total real estate held for sale - 5,734 - 5,734This note showstypes and valuesof inventories andother assets.There are no external or internal restrictions in relation to inventories and other assets.Notes to the Financial StatementsFinancial Report166

Note 9(a) - Infrastructure, Property, Plant and EquipmentAt costAt fairvalue2005$'000AccumdepnCarryingamountCarrying amount movements during year$'000AssetpurchasesAssetdisposalsDepreciationPlant and equipment 20,102 - (8,562) 11,540 4,791 (3,528) (2,157)Offi ce equipment 10,745 - (6,451) 4,294 973 - (1,571)Furniture and fi ttings 4,117 - (1,956) 2,161 16 - (407)Leased plant and equipment 8,889 - (5,078) 3,811 2,404 (355) (1,306)Land• Operational land 34,975 - - 34,975 (1) (53) -• Community land 115,014 - - 115,014 1,093 (71) -• Non depreciable landimprovements --- - - - -• Land under roads - - - - - - -Land improvements -depreciable 124,226-(47,147) 77,079 1,061 - (4,819)Buildings 122,908 - (10,238) 112,670 2,652 - (1,240)Other structures 16,981 - (4,350) 12,631 1,699 - (952)Infrastructure• Roads, bridges, footpaths 702,152 - (143,108) 559,044 10,245 - (16,715)• Bulk earthworks(non-depreciable) 2,098-- 2,098 - - -• Stormwater drainage 144,033 - (12,647) 131,386 2,476 - (1,447)• Water supply network - - - - - - -• Sewerage network - - - - - - -Other assets• Heritage collections 502 - (64) 438 - - (5)• Library books 6,403 - (3,653) 2,750 972 - (1,017)• Other 8,030 - (1,179) 6,851 2,249 - (278)Future reinstatement costs• Tips 22,625 (1,131) 21,494 - - (1,131)• Quarries - - - - - -Totals 1,343,800 - (245,564) 1,098,236 30,630 (4,007) (33,045)Notes to the Financial StatementsCarrying amount movements during year$'000ImpairmentTransfers/AdjustmentsNetrevaluation2006$'000At cost At fair value AccumdepnCarryingamountPlant and equipment - - - 20,502 - (9,856) 10,646Offi ce equipment - - - 11,718 - (8,022) 3,696Furniture and fi ttings - - - 4,133 - (2,363) 1,770Leased plant and equipment - - - 10,155 - (5,601) 4,554Land• Operational land - (1,273) - 33,648 - - 33,648• Community land - - - 116,036 - - 116,036• non depreciable landimprovements - - - - - - -• land under roads - - - - - - -Land improvements -depreciable - - - 125,287 - (51,966) 73,321Financial Report167

Note 9(a) - Infrastructure, Property, Plant and Equipment (cont.)Carrying amount movements during year$'000ImpairmentTransfers/AdjustmentsNetrevaluation2006$'000At cost At fair value AccumdepnCarryingamountBuildings - (83) - 125,476 - (11,477) 113,999Other structures - - - 18,680 - (5,302) 13,378Infrastructure• Roads, bridges, footpaths - - - 712,395 - (159,821) 552,574• Bulk earthworks(non-depreciable) - - - 2,098 - - 2,098• Stormwater drainage - - - 146,510 - (14,095) 132,415• Water supply network - - - - - - -• Sewerage network - - - - - - -Other assets• Heritage collections - - - 503 - (70) 433• Library books - - - 7,375 - (4,670) 2,705• Other - - - 10,280 - (1,458) 8,822Future reinstatement costs• Tips - - - 22,626 - (2,263) 20,363• Quarries - - - - - - -Totals - (1,356) - 1,367,422 - (276,964) 1,090,458Notes to the Financial StatementsFinancial Report168Note 9(b) - Infrastructure, Property, Plant and EquipmentAt cost At valuation Accumdepn2006 $'000 2005 $'000CarryingamountAt cost At valuation AccumdepnThis note detailsinfrastructure,property, plantand equipmentowned by Council.CarryingamountDomestic waste managementPlant and equipment 1,167 - 1,038 129 1,072 - 878 194Offi ce equipment 211 - 157 54 159 - 57 102Furniture and fi ttings - - - - - - - -Leased plant and equipment - - - - - - - -Land• Operational land - - - - 802 - - 802• Community land - - - - 172 - - 172• non-depreciable land improvements - - - - - - - -Land improvements - depreciable 30,858 - 4,301 26,557 3,099 - 563 2,536Buildings 1,469 - 130 1,339 1,472 - 116 1,356Other structures 359 - 194 165 198 - 77 121Other 5,991 - 375 5,616 2,548 - 108 2,440Total domestic waste 40,055 6,195 33,860 9,522 1,799 7,723Total restrictions 40,055 - 6,195 33,860 9,522 - 1,799 7,723This note detailsinfrastructure,property, plant andequipment ownedby Council butrestricted for use bya particular activity.

Note 10 - Liabilities2006 $'000 2005 $'000Current Non-current Current Non-currentPayablesGoods and services 9,665 - 9,588 -Payments received in advance 933 - 697 -Accrued expenses 1,946 - 3,532 -Advances - - 78 -Deposits and retentions 2,361 - 2,354 -Other 709 - 958 -Total payables 15,614 - 17,207 -Interest bearing liabilitiesLoans 237 584 227 821Finance lease liability 1,177 4,197 1,202 3,139Deferred payment liabilities 13,274 - - 12,590Total interest bearing liabilities 14,688 4,781 1,429 16,550ProvisionsAnnual leave 8,795 - 9,263 -Sick leave 2,031 - 2,219 -Long service leave 15,483 359 15,261 -Self insurance claims 537 494 503 348Reinstatement, remediation, etc. - 25,421 - 23,983Workers compensation 1,266 4,823 1,409 5,557Total provisions 28,112 31,097 28,655 29,888Liabilities relating to restricted assetsDomestic waste managementPayables 894 - 931 -Provisions 504 27 131 400Subtotal 1,398 27 1,062 400Administration buildingInterest bearing liabilities 13,274 - - 12,590Subtotal 13,274 - - 12,590Total 14,672 27 1,062 12,990This note showsdetails of Council’sliabilities.Notes to the Financial Statements2006 movements in provision Openingbalance$'000Increases inprovision$'000Payments$'000Remeasurement$'000Closingbalance$'000Annual leave 9,263 6,176 (6,644) - 8,795Sick leave 2,219 162 (350) - 2,031Long service leave 15,261 2,539 (1,958) - 15,842Self insurance 851 180 - - 1,031Waste facility remediation 23,983 1,438 - - 25,421Workers compensation 6,966 (877) - - 6,089Total 58,543 9,618 (8,952) - 59,209Financial Report169

Note 11 - Reconciliation to Cash Flow Statement(a) Reconciliation of CashCash assets comprise highly liquid investments with short periods to maturity subject to insignifi cant risk ofchanges of value. Cash at the end of the reporting period as shown in the Statement of Cash Flows is reconciled tothe related items in the Balance Sheet as follows:This note providesa reconciliation ofcash flows tocash assets.Notes to the Financial StatementsNotes 2006 $'000 2005 $'000Total cash assets 6 7,672 44,449Less: bank overdraft 10 - -Balances per statement of cash flows 7,672 44,449(b) Reconciliation of net operating result to cash provided from operating activitiesNet operating result from Income Statement (5,088) (3,487)Add: Depreciation and amortisation 33,045 32,765Unwinding of present value discounts and premiums 1,476 1,358Increase in provision for doubtful debts 2 15Increase in employee benefi ts provisions - 1,339Decrease in receivables 189 -Decrease in inventories - 9Increase in trade creditors 313 1,953Increase in accrued expenses payable - 2,077Increase in other payables - 776Loss on sale of assets 181 -30,118 36,805Less: Present value discounts and premiums recognised 1 -Decrease in employee benefi ts provisions 75 -Decrease in other provisions 697 674Increase in receivables - 1,355Increase in inventories 51 -Increase in other assets 1,309 1,125Decrease in accrued expenses payable 1,586 -Decrease in other payables 343 -Gain on sale of assets - 1,838Fair value adjustments as revenue items 110 300Non-cash capital grants and contributions 142 296Net cash provided by (or used in) operating activitiesfrom cash flow statement25,804 31,217(c) Non-cash financing and investing activitiesAcquisition of assets by means of:• Bushfi re grants 142 296• Finance leases 2,404 2,8332,546 3,129(d) Financing arrangementsUnrestricted access was available at balance date to the following lines of credit:Bank overdraft 300 300Corporate credit cards 1,000 1,000Financial ReportThe bank overdraft facilities may be drawn at any time and may be terminated by the bank without notice.Interest rates on overdrafts are variable while the rates for loans are fi xed for the period of the loan.170

Note 12 - Commitments for Expenditure2006 $'000 2005 $'000(a) Capital commitmentsCapital expenditure committed for at the reporting date but not recognised in the fi nancial statements as liabilities:Land - 282Buildings - 3,292Infrastructure 233 5,970Offi ce equipment - 535Plant and equipment - 2,978233 13,057These expenditures are payable:Not later than one year 233 13,057Later than one year and not later than 5 years - -Later than 5 years - -233 13,057(b) Service commitmentsOther expenditure committed for (excluding inventories) at the reporting date but not recognised in the fi nancial statementsas liabilities:Audit services 54 108Waste management services 54,653 9,570Repairs and maintenance - investment property - -Other 2,100 4,89956,807 14,577These expenditures are payable:Not later than one year 10,423 14,398Later than one year and not later than 5 years 40,432 179Later than 5 years 5,952 -56,807 14,577(c) Finance lease commitmentsCommitments under fi nance leases at the reporting date are as follows:Not later than one year 1,482 1,425Later than one year and not later than 5 years 4,733 3,566Later than 5 years - -Minimum lease payments 6,215 4,991Less: future fi nance charges (841) (650)Net lease liability 5,374 4,341Representing lease liabilities:Current 1,177 1,202Non-current 4,197 3,1395,374 4,341(d) Operating lease commitmentsCommitments under non-cancellable operating leases at the reporting date but not recognised in the fi nancial statements arepayable as follows:Total future minimum lease paymentsNot later than one year 1,371 669Later than one year and not later than 5 years 1,038 1,053Later than 5 years 1,394 1,4713,803 3,193Council has entered into non-cancellable operating leases for various items of computer and other plant and equipment.(i) Contingent rental payments have been determined in accordance with Council's annual management plans which are publiclynotifi ed in June each year.(ii) No lease imposes any additional restrictions on Council in relation to additional debt or further leasing.This noteprovides detailsof expenditurecommitted asat 30 June 2006however, exceptfor finance leasecommitments, arenot recognised inthe balance sheetas liabilities.Notes to the Financial StatementsFinancial Report171

Note 12 - Commitments for Expenditure (cont.)2006 $'000 2005 $'000(e) Repairs and maintenance - investment propertyContractual obligations for future repairs and maintenance - -- -(d) Remuneration commitmentsCommitments for the payment of salaries and other remuneration under long-term employment contracts in existence atreporting date but not recognised as liabilities, payable:Total future minimum lease paymentsNot later than one year 2,875 2,940Later than one year and not later than 5 years 5,085 5,961Later than 5 years - -7,960 8,901Note 13 - Statement of Performance MeasurementNotes to the Financial Statements2006 2005 2004 2003Amounts IndicatorsCurrent ratioCurrent assets $79,625 136% 142% 231% 253%Current liabilities $58,414Unrestricted current ratioCurrent assets less all external restrictions $45,892 176% 174% 181% 176%Current liabilities less specifi c purpose liabilities $26,036Debt service ratioDebt service cost $3,348 2.32% 2.14% 11.16% 2.48%Revenue from continuing operations excluding capital itemsand specifi c purpose grants/contributions$144,364Rate coverage ratioRates and annual charges $100,090 63.45% 61.53% 64.37% 65.85%Revenue for continuing operations $157,735Rates and annual charges outstanding percentageRates and annual charges outstanding $5,887 5.59% 4.66% 4.31% 4.00%Rates and annual charges collectable $105,276Key performancemeasures showthe underlyingfinancial wealth ofthe organisation.These measuresare required byour auditors andthe Department ofLocal Government.Detailed methods of calculation of these indicators is defi ned in the Code.Financial Report172

Note 14 - Investment PropertyGrants and contributions which were obtained on the condition that they be expended for specifi ed purposes or ina future period, but which are not yet expended in accordance with those conditions, are as follows:2006$'0002005$'000At fair valueOpening balance at 1 July 3,150 2,850Acquisitions - -Capitalised subsequent expenditure - -Classifi ed as held for sale - -Net gain (loss) from fair value adjustment 110 300Transfer (to) from inventories or infrastructure, property, plant and equipment - -Carrying value of disposals - -Closing balance at 30 June 3,260 3,150(a) Amounts recognised in profit and lossRental income 326 272Outgoings recouped - -Net gain (loss) from fair value adjustment 110 300436 572Repairs, maintenance and other operating expenses• Property generating rental income (66) (119)• Property not generating rental income - -370 453(b) Valuation basisFair value is the amount for which an asset could be exchanged between knowledgeable, willing parties in anarm's length transaction and refl ects market conditions at the reporting date.The valuations were made by R F Aubin, Certifi ed Practising Valuer of Martin Morris and Jones.(c) Contractual arrangementsRefer to Note 12 for disclosure of any contractual obligations to purchase, construct or develop investment property orfor repairs, maintenance or enhancements.(d) Leasing arrangementsThe investment properties are leased to tenants under long term operating leases with rentals payable monthly.Minimum lease payments receivable on leases of investment properties are as follows:Not later than one year 291 329Later than one year and not later than 5 years 295 601Later than 5 years - -586 930This note providesdetails regardingour investmentproperties.Notes to the Financial StatementsFinancial Report173

Note 15 - Financial Instruments(a) Interest Rate Risk ExposuresThe Council's exposure to interest rate risk, and the effective weighted average interest rate for each class of fi nancial assets andfi nancial liabilities is set out below. Exposures arise predominately from assets and liabilities bearing variable interest rates, which theCouncil intends to hold to maturity.Floatinginterestrate'000< 1 year'0001-2 years'000Fixed interest maturing in2-3 years'0003-4 years'0004 - 5 years'0005 years'000Non-interestbearing'000Total'000Notes to the Financial Statements2006Financial assetsCash assets (1,028) 8,680 - - - - 20 7,672Investment securities 58,237 11,720 - - - - - 69,957Receivables - 3,522 2,365 - - 98 6,408 12,393Total 57,209 23,922 2,365 - - 98 6,428 90,022Weighted average interest rate 5.87% 6.48% 9.00% 6.00% 5.70%Financial liabilitiesPayables - - - - - - - 13,668 13,668Interest bearing liabilities - 13,274 - 821 - - - - 14,095Finance lease liabilities - - 327 351 1,898 2,108 690 - 5,374Total - 13,274 327 1,172 1,898 2,108 690 13,668 33,137Weighted average interest rate 5.46% 7.06% 6.20% 6.29% 6.22% 6.77% 3.37%Net financial assets/(liabilities)57,209 10,648 2,038 (1,172) (1,898) (2,108) (592) (7,240) 56,8852005 ComparativesComparative fi gures have not been restated to refl ect the adoption of Australian equivalents to International Financial Reporting Standards.Council has taken the exemption available under AASB 1 to apply AASB 132 and AASB 139 from 1 July 2005.2005Financial assetsCash assets 1,013 43,415 - - - - - 21 44,449Investment securities 20,500 - 11,500 - - - - - 32,000Receivables - 2,755 1,874 - - - - 7,182 11,811Total 21,513 46,170 13,374 - - - - 7,203 88,260Weighted average interest rate 6.13% 5.94% 6.60% 5.60%Financial liabilitiesPayables - - - - - - - 13,675 13,675Interest bearing liabilities - - 12,590 - 1,048 - - - 13,638Finance lease liabilities - 173 - 575 426 2,269 657 241 4,341Total - 173 12,590 575 1,474 2,269 657 13,916 31,654Weighted average interest rate 3.12% 5.46% 7.06% 6.20% 6.29% 6.10% 3.18%Net financial assets/(liabilities)21,513 45,997 784 (575) (1,474) (2,269) (657) (6,713) 56,606Financial ReportThis note detailsour financial assetsand liabilities, theclasses andthe applicableinterest rates.174

Note 15 - Financial Instruments (cont.)(b) Net fair valueThe aggregate net fair values of Council's fi nancial assets and fi nancial liabilities are detailed as follows:Carryingamount'000Actual 2006 Actual 2005Aggregatenet fair value'000Carryingamount'000Aggregatenet fair value'000Financial assetsCash and cash equivalents 7,672 7,672 44,449 44,449Investments 69,957 69,957 32,000 32,000Receivables 12,393 12,393 11,811 11,811Other fi nancial assets - - - -Total 90,022 90,022 88,260 88,260Financial liabilities -Payables 13,668 13,668 13,675 13,675Interest bearing liabilities 14,095 14,095 13,638 13,638Other fi nancial liabilities 5,374 5,374 4,341 4,341Total 33,137 33,137 31,654 31,654(c) Credit RiskThe credit risk of fi nancial assets, excluding investments, is the carrying amount net of any provision fordoubtful debts.Council has an investment policy which seeks to minimise the risk of capital loss. Investments are placed inaccordance with the Local Government Investment Order which restricts investments to securities carrying acredit rating of 'A' or better that are not authorised deposit taking institutions (eg. banks, building societies and/orcredit unions).Debtors for rates and annual charges are secured by a charge over the land to which it relates.There are no signifi cant concentrations of credit risk to any single debtor or group of debtors.(d) PoliciesAccounting policies in respect to fi nancial assets and fi nancial liabilities are described in Note 1.(e) Terms and ConditionsThere are no terms and conditions associated with fi nancial assets and fi nancial liabilities which may signifi cantlyaffect the amount, timing and certainty of future cash fl ows.Financial Report Notes to the Financial Statements175

Note 16 - Significant Variations From Original BudgetCouncil's original budget comprised part of the management plan adopted by Council on 27 June 2005.The original projections on which the budget was based have been affected by a number of factors. These includestate and federal government decisions including new grant programs, changing economic activity, the weather,and by decisions made by the Council.This note sets out the details of material variations between the original budget and the actual results for theIncome Statement. Material favourable (F) and unfavourable (U) variances represent amounts of generally 10% ormore of the budgeted amount.Further information of the nature and amount of all variations is available from the Council offi ce upon request.This note givesdetails of materialvariations betweenthe original budgetadopted on 27June 2005 and theactual results for theIncome Statementfor the year ended30 June 2006.1. Interest and Investment RevenueInterest and investment revenue shows a variance from the original budget of $1.2m (F) (27.4%). The favourablevariance was due to a higher than anticipated cash holding resulting from a high level of project carryovers into2006-07, better overall returns than the benchmark from the mix of investment products Council now holds and theimpact of rate increases during the year, not anticipated at the formation of the budget projections.Notes to the Financial Statements2. Other RevenuesOther revenues shows a variation of $1.0m (F) (23.7%) when compared to the original budget. This is dueprimarily to:• Sale of recyclable materials under new contract negotiations at better than original projection levels (331K F).• Recoveries under insurance coverage proved higher than original budget levels ($255K F) but this is offset byhigher claims expenses as well.• Improved rental returns on properties ($225K F).• Redistribution of income originally classifi ed as 'Other Revenue' at budget adoption, and now included as usercharges and fees ($160K U).• Sales of surplus land parcels not proposed at the original budget formulation ($140K F).• Reduced turnover on external maintenance and hire works ($116K U).• Inclusion of a fair value adjustment for investment properties under AIFRS ($110K F).• Promotion/sponsorship income received for various events throughout the year that were not included in originalbudget such as New Year Fever and Australia Day (109K F).• Better than budgeted results on the disposal of plant and fl eet ($100K F).3. Grants and Contributions Provided For Operating PurposesGrants and contributions indicate an unfavourable variation of $2.8m (F) (15.7%) when compared to the originalbudget. Operating grants variance ($1.1m F) mainly relates to the introduction of funding for projects at levels inexcess of the original budget levels. Operating contributions variance ($1.7m F) mainly relates to the introduction offunding for projects at levels in excess of the original budget levels, mainly in the roads and construction areas andwork relating to West Dapto land development.4. Borrowing CostsBorrowing costs exceeded budget by $2.5m (U) (841.3%). A major contribution to this result was the inclusionof $1.4m (U) being an AIFRS adjustment which recognised the tip remediation adjustment, 684K (U) accruedinterest charges associated with the deferred payment arrangement for the purchase of the administration building,offset by an increase in liability which is not refl ected in the operating budget. There was also an adjustment notrecognised in the original budget under AIFRS for the fair value of investment instruments ($318K U), lease costswere unfavourably affected by items delayed from previous periods drawn down ($141K U), and savings in interestfor tourist park development which has been delayed ($56K F).Financial Report176

5. Other ExpensesThe decrease in other expenses of $4.5K (F) (18.6%) is affected by an adjustment from the reclassifi cation ofseveral cost items from other expenses to materials and contracts in the audit, legal expenses and operating leaseareas ($2.6M F). The remaining variance ($1.9m F) is principally as a result of:• Insurance premiums and other insurance related expenses $2.5m (F) - show an overall favourable variance hasbeen achieved as insurance premiums have not continued to increase in general and cost savings from insurancerenewals. In addition, there had been a provision for Council's contribution to an old mutual pool which is now nolonger required ($400K F).The original budget allowed for a pool of money ($1.0m) for below excess insurance claims such as maliciousdamage in the budget element 'insurance claims' (other expenses). As these claims are realised, costs are incurredagainst the areas such as plant, materials, contractors or labour. The makeup of costs cannot be predictedaccurately in the planning stage of the budget, with the variance a refl ection of the transfer to other budget elementsof these costs.• Donations and subsidies and other contributions shows a variance of $1.2m (U) which relates to projects addedduring the year under Council instruction including the Lake Illawarra Entrance works contribution ($475K), soccerrelocation ($334K) and contribution to regional airport ($250K) and support for the Tsunami relief ($170K) offsetby some small savings in other projects. As part of corrections, an adjustment removing internal Council ratespayments has been made. This adjustment ($762K) (U) brought these expenses against the income in rates andannual charges to show a correct external view of these charges.6. Net Loss From Disposal of AssetsThis area shows a variation of $263K (U) (320.7%) from the original budget. The major elements arise from areduction in the return on motor vehicle changeovers refl ecting both market conditions and a change in Council'sfl eet replacement program, and the sale of Council property not included in the original budget calculations.In addition to the abovementioned items, minor favourable and unfavourable variations occurred throughout theyear in a number of revenue and expense items. All variations have been monitored and reported to Council on aregular basis.Financial Report Notes to the Financial Statements177

Note 17 - Statement of Contribution Plans(a) Summary of Developer ContributionsOpeningbalance$'000Contributions receivedduring the yearCash$'000Non-cash$'000Interestearnedduringyear $'000Expendedduringyear $'000Internalborrowings(to)/from$'000Held asrestrictedasset$'000Worksprovidedto date$'000PurposeDrainage - - - - - - - -Roads 1,478 148 - 92 - - 1,718 -Developers paycontributionsto fund publicworks. Thesestatements showall the developercontributions byarea and type.Traffi c facilities 1,468 (275) - 78 (494) - 777 -Parking 502 (274) - 34 (7) - 255 -Open space 1,743 (452) - 124 (796) - 619 -Community facilities 13,069 (7,842) - 834 (744) - 5,317 -Other 955 111 - 53 (622) - 497 -Subtotal S94 under plans 19,215 (8,584) - 1,215 (2,663) - 9,183 -Sec 94 not under plans 73 (80) - 7 - - - -Sec 94A levies - 11,125 - - - - 11,125 -Sec 64 contributions - - - - - - - -Total contributions 19,288 2,461 - 1,222 (2,663) - 20,308 -Note: The above summary of contribution plans represents the total of Council's individual contribution plans.Individual plan details are shown below.Notes to the Financial Statements(b) Contribution Plan No: 1 - Open Space Embellishment and Community FacilitiesOpeningbalance$'000Contributions receivedduring the yearCash$'000Non-cash$'000Interestearnedduring year$'000Expendedduringyear $'000Internalborrowings(to)/from$'000Held asrestrictedasset$'000Worksprovidedto date$'000PurposeDrainage - - - - - - - -Roads - - - - - - - -Traffi c facilities - - - - - - - -Parking - - - - - - - -Open space 2,072 (668) - 145 (580) - 969 -Community facilities 10,920 (7,960) - 700 (744) - 2,916 -Other - - - - - - - -Total 12,992 (8,628) - 845 (1,324) - 3,885 -Financial Report178

Note 17 - Statement of Contribution Plans (cont.)(c) Contribution Plan No: 2 - Traffic and RoadworksOpeningbalance$'000Contributions receivedduring the yearCash$'000Non-cash$'000Interestearnedduring year$'000Expendedduringyear $'000Internalborrowings(to)/from$'000Held asrestrictedasset$'000Worksprovidedto date$'000PurposeDrainage - - - - - - - -Roads - - - - - - - -Traffi c facilities 851 (226) - 51 (34) - 642 -Parking - - - - - - - -Open space - - - - - - - -Community facilities - - - - - - - -Other - - - - - - - -Total 851 (226) - 51 (34) - 642 -(d) Contribution Plan No: 3 - Car ParkingOpeningbalance$'000Contributions receivedduring the yearCash $'000Non-cash$'000Interestearnedduring year$'000Expendedduringyear $'000Internalborrowings(to)/from$'000Held asrestrictedasset$'000Worksprovidedto date$'000PurposeDrainage - - - - - - - -Roads - - - - - - - -Traffi c facilities - - - - - - - -Parking 492 (263) - 33 (7) - 255 -Open space - - - - - - - -Community facilities - - - - - - - -Other - - - - - - - -Total 492 (263) - 33 (7) - 255 -(e) Contribution Plan No: 4 - StudiesOpeningbalance$'000Contributions receivedduring the yearCash $'000Non-cash$'000Interestearnedduring year$'000Expendedduringyear$'000Internalborrowings(to)/from$'000Held asrestrictedasset$'000Worksprovidedto date$'000PurposeDrainage - - - - - - - -Roads - - - - - - - -Traffi c facilities - - - - - - - -Parking - - - - - - - -Open space - - - - - - - -Community facilities - - - - - - - -Other 258 11 - 17 (123) - 163 -Total 258 11 - 17 (123) - 163 -Financial Report Notes to the Financial Statements179

Note 17 - Statement of Contribution Plans (cont.)(f) Contribution Plan No: 5 - HorsleyOpeningbalance$'000Contributions receivedduring the yearCash $'000Non-cash$'000Interestearnedduring year$'000Expendedduringyear$'000Internalborrowings(to)/from$'000Held asrestrictedasset$'000Worksprovidedto date$'000PurposeDrainage - - - - - - - -Roads 1,478 148 - 92 - - 1,718 -Traffi c facilities 455 20 - 18 (358) - 135 -Parking - - - - - - - -Open space (329) - - (21) - - (350) -Community facilities 2,149 118 - 134 - - 2,401 -Other 697 100 - 36 (499) - 334 -Total 4,450 386 - 259 (857) - 4,238 -(g) Other Contribution PlansNotes to the Financial StatementsOpeningbalance$'000Contributions receivedduring the yearCash $'000Non-cash$'000Interestearnedduring year$'000Expendedduringyear$'000Internalborrowings(to)/from$'000Held asrestrictedasset$'000Worksprovidedto date$'000PurposeDrainage - - - - - - - -Roads - - - - - - - -Traffi c facilities 162 (69) - 9 (102) - - -Parking 10 (11) - 1 - - -Open space - 216 - - (216) - - -Community facilities - - - - - - - -Other - - - - - - - -Total 172 136 - 10 (318) - - -(h) Contributions Not Under PlansFinancial ReportOpeningbalance$'000Contributions receivedduring the yearCash $'000Non-cash$'000Interestearnedduring year$'000Expendedduringyear $'000Internalborrowings(to)/from$'000Held asrestrictedasset$'000Worksprovidedto date$'000PurposeDrainage 9 (10) - 1 - - - -Roads 57 (61) - 4 - - - -Traffi c facilities - - - - - - - -Parking 2 (3) - 1 - - - -Open space 2 (2) - - - - - -Community facilities - - - - - - - -Other 3 (4) - 1 - - - -Total 73 (80) - 7 - - - -180

Note 17 - Statement of Contribution Plans (cont.)(i) Section 94A planOpeningbalance$'000Contributions receivedduring the yearCash $'000Non-cash$'000Interestearnedduring year$'000Expendedduringyear$'000Internalborrowings(to)/from$'000Held asrestrictedasset$'000Worksprovidedto date$'000PurposeDrainage - - - - - - - -Roads - - - - - - - -Traffi c facilities - - - - - - - -Parking - - - - - - - -Open space - - - - - - - -Community facilities - - - - - - - -Other - 11,125 - - - - 11,125 -Total - 11,125 - - - - 11,125 -Note 18 - Assets and Liabilities Not Recognised in the Balance Sheet1. Public Liability and Professional Indemnity InsuranceCouncil was a member of a cooperative of six councils known as Premsure for the fi rst eight years ofPremsure's operation. The cooperative operated to pool the councils' funds for payment of liability and professionalindemnity claims as an alternative to insurance coverage. Council withdrew from continuing membership ofPremsure on 31 October 1996 and since that date has made alternative arrangements for securing its owninsurance coverage.After Council withdrew from Premsure, Council placed its liability insurance with the Independent InsuranceCompany of London. During 2000-2001 the Independent Insurance Company was placed into provisionalliquidation and Council secured liability and professional indemnity insurance coverage from QBE Insurance(English division) effective 30 April 2001.Contingent Asset:The Independent Insurance Company (in receivership) remains responsible for payment of that portion of each ofCouncil's claims incurred which exceeded $25,000 for the period 31 October 1996 to 30 April 2001. The total ofCouncil's unrecovered liability claims is estimated to be $2,519,000. This amount will be subject to future variationaccording to how remaining claims are settled.At this time Council is unable to determine how much it will recover from the remaining assets of the IndependentInsurance Company, although information in this regard is expected to be received during 2007 calendar year.2. ISR Infrastructure Coverage HIHContingent Asset:The storm event of August 1998 caused damage to Council's buildings, contents and infrastructure includingroads, drains, bridges and culverts. The wording of Council's contract of insurance with HIH (in liquidation) providedcoverage for all of these categories of losses. Council has lodged a notice of claim upon HIH for damage to itsbuildings, contents and infrastructure. The liquidators of HIH have announced that interim payments to creditors willbe made but a timeframe for the payments has not yet been confi rmed.3. Bank GuaranteeContingent Liability:Council has guaranteed one bank loan to a third party. No loss is anticipated under this bank guarantee.Contingent Liability:Council has provided security to WorkCover for outstanding workers compensation claims liability in the form of abank guarantee to the sum of $8,919,000.Due to theuncertainty offuture events,the assets andliabilities detailedin this note areclassified ascontingentand are notrecorded on thebalance sheet.Notes to the Financial StatementsFinancial Report181

Note 18 - Assets and Liabilities Not Recognised in the Balance Sheet (cont.)4. Emibarb Pty LtdCouncil is in dispute with Emibarb Pty Ltd, for which substantial legal costs have been incurred and paid byCouncil. As a result of Council's failure to secure orders of the Supreme Court to rectify a defective draft lease,Council will be required to pay the legal costs of Emibarb which, although unspecifi ed at this time, are estimated tobe in the order of $500,000 and will become payable perhaps during August 2006. This amount has been accruedas an expense in 2005-06.Contingent Liability:Although Council's legal action in the Supreme Court has been completed, the grant of lease to Emibarb Pty Ltdhas not yet been completed. Council continues to incur legal costs for current and continuing legal services whichCouncil is securing from Clayton Utz on an ongoing basis.Contingent Asset:At this time Council's future course of action has not been determined. However, it is anticipated that Council willbe able to recover its out-of-pocket expenses for rectifi cation action and for reimbursement of Emibarb's costs fromLawCover, the insurer of legal practitioners in New South Wales. It is not possible to confi rm whether Council willrecover all of its outgoings and payments to Emibarb from LawCover or when this will occur.Note 19 - Investments Accounted for Using the Equity MethodNotes to the Financial StatementsJoint venture partnershipCarrying amount of investment in partnership - -Share of partnership's assets and liabilitiesCurrent assets - -Non-current assets - -Total assets - -Current liabilities - -Non-current liabilities - -Total liabilities - -Net assets - -Share of partnership's revenue, expenses and resultsRevenues - -Expenses - -Operating result - -Share of partnership's commitmentsLease commitments - -Other commitments - -Total expenditure commitments - -Capital commitments - -- -Contingent liabilities relating to joint ventures - -2006'0002005'000We have noinvestmentsaccounted forusing the equitymethod howeverthe Department ofLocal Governmentrequire us to includethis note as part ofour reports.Financial Report182

Note 20 - Revaluation Reserves and Retained Earnings2006$'0002005$'000(a) Revaluation reservesInfrastructure, property, plant and equipment revaluation reserve 250,401 250,401Available-for-sale investments revaluation reserve - -250,401 250,401Movements: Infrastructure, property, plant and equipment revaluation reserveAt beginning of year 250,401 250,401Revaluation - gross - -Depreciation transfer - gross - -At end of year 250,401 250,401Available-for-sale investments revaluation reserveAt beginning of year - -Revaluation - gross - -Depreciation transfer - gross - -At end of year - -- -(b) Retained earningsMovements in retained earnings were as follows:At beginning of year 854,552 858,039Adjustment on adoption of AASB 132 and AASB 139 3 -Net operating result for the year (5,088) (3,487)At end of year 849,467 854,552(c) Nature and purpose of reserves(i) Infrastructure, property, plant and equipment revaluation reserveThe infrastructure, property, plant and equipment revaluation reserve is used to record increments and decrements on therevaluation of non-current assets.(ii) Available-for-sale investments revaluation reserveChanges in fair value are taken to the available-for-sale investments revaluation reserve, as described in Note 1 (5). Amounts arerecognised in profi t and loss when the associated assets are sold or impaired.This note showsbalances andmovementsin revaluationreserves andretained earnings.Notes to the Financial StatementsFinancial Report183

Note 21 - Explanation of Transition to Australian Equivalents to IFRSNotes to the Financial Statements(1) Reconciliation of Equity Reported Under Previous Australian Generally AcceptedAccounting Principles (AGAAP) to Equity Under Australian Equivalents to IFRS (AIFRS)(a) At the Date of Transition to AIFRS: 1 July 2004NotesPreviousAGAAP$'000Effect of transitionto AIFRS$'000AIRFS$'000AssetsCurrent assetsCash and cash equivalents 1 29,373 15,717 45,090Investment securities 12,000 - 12,000Receivables 10,425 - 10,425Inventories - realisable < 12 months 391 - 391Inventories - realisable > 12 months - - -Other 147 - 147Assets held for sale (formerly non-current) - - -Non-current assetsCash and cash equivalents 2 15,717 (15,717) -Investment securities 11,500 - 11,500Receivables 1,704 - 1,704Inventories 5,734 - 5,734Infrastructure, property, plant and equipment 3 1,082,383 20,975 1,103,358Investment property 4 - 2,850 2,850Total assets 1,169,374 23,825 1,193,199LiabilitiesCurrent liabilitiesPayables 12,409 - 12,409Borrowings 1,652 - 1,652Provisions - payable < 12 months 8,555 - 8,555Provisions - payable > 12 months 5 - 18,768 18,768Non-current liabilitiesBorrowings 14,218 - 14,218Provisions 6 25,340 3,857 29,197Total liabilities 62,174 22,625 84,799Net assets 1,107,200 1,200 1,108,400EquityAccumulated surplus 7 856,799 1,200 857,999Asset revaluation reserves 250,401 - 250,401Total equity 1,107,200 1,200 1,108,400This financial yearis the first periodthat the adoptionof Australianequivalents toInternationalFinancial ReportingStandards (AIFRS)is reflected in ourfinancial reports.This note details thetransition from theway we reportedour finances in thepast to the way weare now required toreport under AIFRS.Financial Report184

Note 21 - Explanation of Transition to Australian Equivalents to IFRS (cont.)Notes to the Reconciliation$'000$'0001 Cash and Cash Equivalents (current)Increased by $15,717,000 being the transfer of short term deposits and bills from non-current to current representing the requirementto split external restrictions (Note 6) between current and non-current on the basis of the liquidity of the investments in which they areheld rather than when the monies will be spent:DR Current - cash and equivalents 15,717CR Non-current - cash and equivalents 15,7172 Cash and Cash Equivalents (non-current)Reduced by $15,717,000 being the transfer of short term deposits and bills from non-current to current as described in 1 above.3 Infrastructure, Property, Plant and Equipment (IPPE))(a) Reduced by $1,650,000 being the transfer of investment properties out of IPPE to the investment property classifi cation:DR Investment property 1,650CR IPPE - Council owned land 438CR IPPE - buildings 1,212(b) Increased by $22,625,000 being waste facility asset recognised on calculation of waste facility remediation provision:DR IPPE - waste facility 22,625CR Provision for waste facility remediation 22,6254 Investment PropertyIncreased by $1,650,000 being the transfer out of IPPE as described in 3 (a) above. Increased by a further $1,200,000 on adoption offair value:DR Investment property 1,200CR Retained earnings 1,2005 Provisions (current)Increased by $18,768,000 being the transfer of employees leave entitlements (ELE) from non-current to current representing therequirement to show liabilities as current where there is no unconditional right to defer beyond twelve months:DR Non-current provisions - ELE 18,768CR Current provisions - payable > 12 months - ELE 18,7686 Provisions (non-current)Reduced by $18,768,000 due to the change in defi nitions described in 5 above.Increased by $22,625,000 being the recognition of the remediation provision for Council's waste facility as described in 3 (b).7 Retained earningsIncreased by $1,200,000 being the revaluation of investment property to fair value as described in 4 above.Financial Report Notes to the Financial Statements185

Note 21 - Explanation of Transition to Australian Equivalents to IFRS (cont.)(b) At the End of the Last Reporting Period Under Previous AGAAP: 30 June 2005Notes to the Financial StatementsNotesPreviousAGAAP$'000Effect of transitionto AIFRS$'000AIRFS$'000AssetsCurrent assetsCash and cash equivalents 1 26,727 17,722 44,449Investment securities 4 20,500 (11,000) 9,500Receivables 11,610 - 11,610Inventories - realisable < 12 months 103 - 103Inventories - realisable > 12 months - - -Other 1,272 - 1,272Assets held for sale (formerly non-current) 5 - 119 119Non-current assetsCash and cash equivalents 2 17,722 (17,722) -Investment securities 3 11,500 11,000 22,500Receivables 2,009 - 2,009Inventories 5,734 - 5,734Infrastructure, property, plant and equipment 6 1,078,498 19,738 1,098,236Investment property 7 - 3,150 3,150Total assets 1,175,675 23,007 1,198,682LiabilitiesCurrent liabilitiesPayables 17,207 - 17,207Borrowings 1,429 - 1,429Provisions - payable < 12 months 8,534 - 8,534Provisions - payable > 12 months 8 - 20,121 20,121Non-current liabilitiesBorrowings 16,550 - 16,550Provisions 9 26,026 3,862 29,888Total liabilities 69,746 23,983 93,729Net assets 1,105,929 (976) 1,104,953EquityAccumlated surplus 10 855,528 (976) 854,552Asset revaluation reserves 250,401 - 250,401Total equity 1,105,929 (976) 1,104,953Financial Report186

Note 21 - Explanation of Transition to Australian Equivalents to IFRS (cont.)Notes to the Reconciliation$'000$'0001 Cash and Cash Equivalents (current)(a) Increased by $15,717,000 being the transfer of short term deposits and bills, as at 1 July 2004, from non-current to currentrepresenting the requirement to split external restrictions (Note 6) between current and non-current on the basis of the liquidity ofthe investments in which they are held rather than when the monies will be spent:DR Current - cash and equivalents 15,717CR Non-current - cash and equivalents 15,717(b) Further increased by $2,005,000 being the transfer of short term deposits and bills, as at 30 June 2005, from non-current tocurrent as in (a) above.DR Current - cash and equivalents 2,005CR Non-current - cash and equivalents 2,0052 Cash and Cash Equivalents (non-current)Reduced by $17,722,000 being the transfer of short term deposits and bills from non-current to current as described in 1 above.3 Investment Securities (non-current)Increased by $11,000,000 being the transfer of CDOs from current to non-current representing the requirement to split externalrestrictions (Note 6) between current and non-current on the basis of the liquidity of the investments in which they are held ratherthan when the monies will be spent:DR Non-current - investment securities 11,000CR Current - investment securities 11,0004 Investment Securities (current)Reduced by $11,000,000 being the transfer of CDOs from current to non-current as described in 3 above.5 Assets held for sale (formerly non-current)Increased by $119,000 being the transfer of assets held for sale out of IPPE to the assets held for sale classifi cation:DR Assets held for sale 119CR IPPE - Council owned land 79CR IPPE - buildings 406 Infrastructure, Property, Plant and Equipment (IPPE)(a) Reduced by $1,650,000 being the transfer of investment properties out of IPPE to the investment property classifi cation:DR Investment property 1,650CR IPPE - Council owned land 438CR IPPE - buildings 1,212(b) Increased by $22,625,000 being waste facility asset recognised on calculation of waste facility remediation provision:DR IPPE - waste facility 22,625CR Provision for waste facility remediation 22,625(c) Reduced by $119,000 being the transfer out of IPPE as described in 5 above.(d) Reduced by $1,131,000 being depreciation of the waste facility asset $22,625,000 @ 5%:DR Depreciation expense 1,131CR IPPE - accumulated depreciation 1,131(e) Increased by $13,000 being depreciation of investment property charged under AGAAP now reversed:DR IPPE - accumulated depreciation 13CR Depreciation expense 13Financial Report Notes to the Financial Statements187

Note 21 - Explanation of Transition to Australian Equivalents to IFRS (cont.)Notes to the Reconciliation (cont.)$'000 $'0007 Investment Property(a) Increased by $1,650,000 being the transfer out of IPPE as described in 6 (a) above.(b) Increased by a further $1,200,000 on adoption of fair value at 1 July 2004:DR Investment property 1,200CR Retained earnings 1,200(c) Increased by $300,000 revaluation of investment property to fair value at 30 June 2005:DR Investment property 300CR Income statement - fair value adjustments for investment property 3008 Provisions (current)(a) Increased by $18,768,000 being the transfer of employees leave entitlements (ELE), as at 1 July 2004, from non-current to current representingthe requirement to show liabilities as current where there is no unconditional right to defer beyond twelve months:Notes to the Financial StatementsDR Non-current provisions - ELE 18,768CR Current provisions - payable > 12 months - ELE 18,768(b) Further increased by $1,353,000 being the transfer of Employees Leave Entitlements (ELE) for the twelve month period to 30 June 2005, fromnon-current to current as in (a) above:DR Non-current provisions - ELE 1,353CR Current provisions - payable > 12 months - ELE 1,3539 Provisions (non-current)(a) Reduced by $20,121,000 due to the change in defi nitions described in 8 above.(b) Increased by $22,625,000 being the recognition of the remediation provision for Council's waste facility as described in 6 (b) above.(c) Increased by $1,358,000 being the amortisation of the discount calculated on the provision for waste facility remediation $22,625,000 @ 6%for 2005:DR Income statement - borrowing costs - amortisation of waste facility discount 1,358CR Provision for Waste Facility remediation 1,35810 Retained earnings(a) Increased by $1,200,000 being the revaluation of investment property to fair value as described in 7 (b) above.(b) Reduced by $1,131,000 being depreciation of the waste facility asset as described in 6 (d) above.(c) Increased by $300,000 being the revaluation of investment property to fair value as described in 7 (c) above.(d) Reduced by $1,358,000 being the borrowing cost associated with amortisation of the discount on waste facility remediation as described in9 (c) above.(e) Increased by $13,000 being depreciation of investment property charged as described in 6 (e) above.Financial Report188

Note 21 - Explanation of Transition to Australian Equivalents to IFRS (cont.)(2) Reconciliation of Operating Result Under Previous AGAAP to Operating Result UnderAustralian equivalents to IFRS (AIFRS)(a) Reconciliation of Operating Result for the Year Ended 30 June 2005NotesPreviousAGAAP$'000Effect of transitionto AIFRS$'000AIRFS$'000Income from continuing operationsRevenue:Rates and annual charges 94,884 - 94,884User charges and fees 19,608 - 19,608Interest and investment revenue 4,555 - 4,555Other revenues 1 5,050 300 5,350Grants and contributions provided foroperating purposes 21,615 - 21,615Grants and contributions provided for capitalpurposes 6,351 - 6,351Other income: - -Net gain from the disposal of assets 1,838 - 1,838Total income from continuing operations 153,901 300 154,201Expenses from continuing operationsEmployee benefi ts and oncosts 68,141 - 68,141Borrowing costs 2 953 1,358 2,311Materials and contracts 34,723 - 34,723Depreciation and amortisation 3 31,647 1,118 32,765Impairment - - -Other expenses 19,748 - 19,748Total expenses fromcontinuing operations 155,212 2,476 157,688Operating result fromcontinuing operations 4 (1,311) (2,176) (3,487)Net operating result for the year (1,311) (2,176) (3,487)Net operating result for the year beforegrants and contributions provided forcapital purposes (7,662) (2,176) (9,838)Notes to the Reconciliation1. Other RevenueIncreased by $300,000 being the revaluation of investment property to fair value in the 2005 period.2. Borrowing costsIncreased by $1,358,000 being the amortisation of the discount calculated on the provision for waste facilityremediation using the effective interest rate of 6% ($22,625,000 @ 6%).3. DepreciationIncreased by $1,131,000 being depreciation of the waste facility asset over its useful life ($22,625,000 over 20years). Decreased by $13,000 being depreciation of investment property charged under AGAAP now reversed.4. Total Impact on Net Operating ResultReduced by $2,176,000 calculated by adding 1, 2 and 3 above.Financial Report Notes to the Financial Statements189

Note 21 - Explanation of Transition to Australian Equivalents to IFRS (cont.)(3) Reconciliation of Cash Flow Statement for the Year ended 30 June 2005The adoption of AIFRS has not resulted in any material adjustments to the Statement of Cash Flows.(4) Adjustments on Transition to AASB 132 Financial Instruments: Disclosure and Presentationand AASB 139 Financial Instruments: Recognition and Measurement: 1 July 2005Notes to the Financial StatementsNotesPreviousAGAAP$'000Effect of transitionto AIFRS$'000AIRFS$'000AssetsCurrent assetsCash and cash equivalents 44,449 - 44,449Investment securities 9,500 - 9,500Receivables 11,610 - 11,610Inventories - realisable < 12 months 103 - 103Inventories - realisable > 12 months - - -Other 1,272 - 1,272Assets held for sale (formerly non-current) 119 - 119Non-current assetsCash and cash equivalents - - -Investment securities 1 22,500 430 22,930Receivables 2 2,009 (427) 1,582Inventories 5,734 - 5,734Infrastructure, property, plant and equipment 1,098,236 - 1,098,236Investment property 3,150 - 3,150Total assets 1,198,682 3 1,198,685LiabilitiesCurrent liabilitiesPayables 17,207 - 17,207Borrowings 1,429 - 1,429Provisions - payable < 12 months 8,534 - 8,534Provisions - payable > 12 months 20,121 - 20,121Non-current liabilitiesBorrowings 16,550 - 16,550Provisions 29,888 - 29,888Total liabilities 93,729 - 93,729Net assets 1,104,953 3 1,104,956EquityAccumulated surplus 3 854,552 3 854,555Asset revaluation reserves 250,401 - 250,401Total equity 1,104,953 3 1,104,956Notes to the ReconciliationFinancial Report1901. Investment securitiesIncreased by $430,000 being the revaluation of 'fi nancial assets at fair value through P and L' from carrying valueto fair value on transition to AASB 132 and AASB 139.2. ReceivablesDecreased by (a) $389,000 being investment income accrued under AGAAP now reversed and (b) $38,000discount recognised on an interest free loan.3. Retained EarningsIncreased by $3,000 being the sum of 1 and 2 above.

Note 22 - Reinstatement, Rehabilitation and Restoration Assets2006$'0002005$'000At beginning of yearAmounts capitalised to waste disposal asset 23,982 22,625- New disturbance - -- Revised costs - -- Revised life - -- Revised discount rate - -Amortisation of discount-expenses to borrowing costs 1,439 1,357At end of year 25,421 23,982This note showsthe value of wastefacility remediationassets. Thevalue includesclose down andrestoration costs.Note 22 - Waste Facility RemediationCouncil is required to restore its waste disposal depots at Whytes Gully and Helensburgh at the end of their useful lives in2025. The present day cost of this restoration work was $22,625,000 as at 1 July 2004 based on engineering estimates andhas been adjusted to present day dollars using 6% per annum being the risk free cost of borrowing to Council.Note 23 - Non-current Assets Classified as Held for Sale2006$'0002005$'000Land 1,274 79Buildings 83 40Total 1,357 119Council has a number of parcels of property which it has made a decision to dispose of. These properties are to be settledduring the ensuing fi nancial period.This note showsthe type andrecorded value ofnon-current assetsthat are availablefor sale.Notes to the Financial StatementsFinancial Report191

Independent Audit ReportFinancial Report192

Report on the Conduct of the Audit for the Year Ended 30 June 2006 -Section 417 (3)We have completed our audit of the fi nancial reports for the Council of the City of Wollongong for the year ended30 June 2006, in accordance with Section 415 of the Local Government Act, 1993. Our audit opinion under Section417 (2) has been issued to Council.The Council is responsible for the preparation and presentation of the fi nancial reports and the informationthey contain. The fi nancial reports consist of the general purpose fi nancial report and Council's statement in theapproved form required by Sections 413 (2) (a) and (3) respectively of the Local Government Act, 1993.Our audit has been conducted in accordance with Australian Auditing Standards to provide reasonable assuranceas to whether the fi nancial reports are free of material misstatement. Our procedures included examination on atest basis, of evidence supporting the amounts and other disclosures in the fi nancial reports, and the evaluation ofaccounting policies and signifi cant Accounting Standards and other mandatory professional reporting requirements(Urgent Issues Group Consensus Views) and statutory requirements so as to present a view which is consistent withour understanding of the Council's fi nancial position, the results of its operations and its cash fl ow.Flowing from our audit there are a number of comments we wish to raise concerning the trends in Council'sfi nances. These comments are set out below.Operating ResultCouncil's Income Statement shows a defi cit for the year of $5.1m which is up from the previous year's defi cit of$3.5m. Some of the reasons for this increase include:• Lower gain on asset sales (down $2m)• Higher borrowing costs (up $500K)• Lower user fees and charges (down $440K)Cash PositionCouncil's overall cash position increased from $76m to $77m during the period under review. The following tablehighlights the composition of cash:June 2005$'000June 2006$'000Externally restricted 43,451 45,683Internally restricted 19,663 19,963Unrestricted 13,335 11,98376,449 77,629The increase in internal restrictions (reserves) and unrestricted cash helped to stabilise liquidity indicators asdiscussed later in this report.Working CapitalCouncil's net current assets increased from $19.8m to $21.9m during the period. In other words, the assets thatCouncil is expected to realise in the coming year exceed the liabilities that will need to be met by $22m. Prima facie,this places Council in a strong fi nancial position, however it must be remembered that this balance includes itemswhich are restricted in their use. The value of net current assets therefore needs to be adjusted in order to establishCouncil's Available Working Capital as follows:June 2005$’000June 2006$’000Net current assets 19,762 21,211Less: External restrictions 20,951 33,048Internal restrictions 19,663 19,963(20,842) (31,800)Add: Current liabilities funded from other sources 30,084 42,800Available working capital 9,242 11,000The Available Working Capital upon which Council could build its 2006-07 budget was $11m.Financial Report Independent Audit Report193

Performance IndicatorsThe fi nancial report discloses a number of indicators in Note 13 which are detailed below:June 2005 % June 2006 %Unrestricted current ratio 174 176Debt service ratio 2.14 2.32Rate coverage ratio 62 63Rates outstanding ratio 4.7 5.6Unrestricted Current RatioThe ratio increased slightly over the previous year and remains well above the accepted industry benchmarkof 100%.Debt Service RatioThe debt service ratio increased but remained well below the industry benchmark of 10%.Rate Coverage RatioThe rate coverage ratio indicated that Council continues to have a relatively high reliance on rates as a sourceof income. The accepted benchmark is 50%.Rates Outstanding RatioThe rates outstanding ratio increased to above the accepted industry benchmark of 5%.AssessmentCouncil is considered to be in a sound and stable fi nancial position. All indicators remain better than acceptedindustry benchmarks except the rates outstanding ratio which increased above the accepted benchmark.Independent Audit ReportGeneralThe books of accounts and records inspected by us have been kept in an accurate and conscientious manner.We take this opportunity to thank the General Manager together with his staff for the cooperation and courtesyextended to us during the course of our audit.Yours faithfullyPricewaterhouseCoopersJ A GordonPartnerFinancial Report194

Statement by Councillors and Management Made Pursuant to the LocalGovernment Code of Accounting Practice and Financial ReportingThe attached Special Purpose Financial Reports have been prepared in accordance with:• NSW Government Policy Statement 'Application of National Competition Policy to Local Government'• Department of Local Government guidelines 'Pricing and Costing for Council Businesses: A Guide to Competitive Neutrality',• Local Government Code of Accounting Practice and Financial Reporting.To the best of our knowledge and belief, these reports:• Present fairly the operating result and fi nancial position for each of Council's declared business activities for the year, and• Accord with Council'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 Council made on 25 September 2006.____________________________________________________________________Cr A DarlingLord MayorCr V ZanottoCouncillorR OxleyChief Executive Offi cerS PayneResponsible Accounting Offi cerSpecial Purpose Financial ReportsFinancial Report195

Income Statement by Business Activities (Category 1)for the year ended 30 June 2006Special Purpose Financial ReportsRevenue from continuing operations2006BudgetWaste disposal(Cat. 1) $'0002006 2005 2006BudgetTourist parks(Cat. 1) $'0002006 2005Rates and annual charges - - - - - -User charges and fees 4,088 3,994 3,595 3,626 3,706 3,505Interest received - - - - - -Grants and contributions - operating - - - - - -Gain on disposal of assets - - - - - -Other operating revenues 5 7 3 16 14 9Total 4,093 4,001 3,598 3,642 3,720 3,514Expenses from continuing operationsEmployee costs 924 940 1,189 1,027 1,104 1,399Materials and contracts 713 958 937 568 575 650Borrowing costs 1,439 1,439 1,358 112 56 66Depreciation and amortisation 1,401 1,433 1,327 401 374 385Other operating expenses 3,161 3,107 2,703 1,089 1,068 1,082Loss on disposal of assets - - - - - -NCP imputation payments - 89 86 - 81 55Total 7,638 7,966 7,600 3,197 3,258 3,637Continuing operations result before capital amounts (3,545) (3,965) (4,002) 445 462 (123)Grants and contributions - capital - - - - - -Surplus (deficit) before tax (3,545) (3,965) (4,002) 445 462 (123)Corporate taxation equivalent - - - - 139 -Surplus (deficit) for year (3,545) (3,965) (4,002) 445 323 (123)Add: accumulated profi ts brought forward 4,266 4,266 8,182 9,022 9,022 9,090NCP imputation payments retained - 89 86 - 81 55Corporate taxation equivalent - - - - 139 -Less: dividends paid - TER - - - - - -- Surplus dividend - - - - - -Accumulated surplus 721 390 4,266 9,467 9,565 9,022Rate of return on capital -5.57% -6.69% -7.14% 4.43% 4.12% -0.45%Notional subsidy from Council for 5.79% ROC(2005 - 5.10% ROC) 4,331 4,751 4,533 1,538 222 700This incomestatement reportsthe financialperformance of thebusiness activitiesidentified in the2005-09 corporateplan as Category 1businesses(annual grossoperating incomegreater than $2mper year).This statement is to be read in conjunction with the attached Notes.Financial Report196

Category 1 Business Activities - Significant Variations From BudgetThis note sets out the details of material variations between the budget and the actual results for the IncomeStatement for category 1 business activities. Material favourable (F) and unfavourable (U) variances representamounts of generally 10% or more of the budgeted amount.Further information of the nature and amount of all variations is available from the Council offi ce upon request.Waste Disposal1. Materials and ContractsMaterials and contracts expenditure shows a variation of $245K (U) (34%) when compared to the budget.This is due primarily to increased usage of plant and vehicle hire, drainage and tip face materials and electrical,engineering and plumbing contractors.2. NCP Imputation Payments (Taxation Equivalent Payments)Taxation equivalent payments (refer Note 1 to the Special Purpose Financial Reports) of $89K are reported for thepurposes of disclosing comparative information relevant to the private sector and are not included in the budget.Tourist Parks1. Borrowing CostsBorrowing costs show a variation of $56K (F) (50%) when compared to the budget. This is due to anticipated loanborrowings not being taken up in 2005-06.2. NCP Imputation Payments (Taxation Equivalent Payments)Taxation equivalent payments (refer Note 1 to the Special Purpose Financial Reports) of $81K are reported for thepurposes of disclosing comparative information relevant to the private sector and are not included in the budget.3. Corporate Taxation EquivalentCorporate taxation equivalent (refer Note 1 to the Special Purpose Financial Reports) amount of $139K is reportedfor the purpose of assessing the rate of return required on capital invested and is not included in the budget.Special Purpose Financial ReportsFinancial Report197

Income Statement by Business Activities (Category 2)for the Year Ended 30 June 2006Special Purpose Financial ReportsHealth andfitness(Cat. 2) $'000Crematorium andcemeteries(Cat. 2) $'000Marketing(Cat. 2)$'0002006 2005 2006 2005 2006 2005Revenue from continuing operationsRates and annual charges - - - - - -User charges and fees 2,040 1,918 1,512 1,379 3,623 3,802Interest received - - - - - -Grants and contributions - operating - - - - - -Gain on disposal of assets - - - - - -Other operating revenues 38 28 (5) - - -Total 2,078 1,946 1,507 1,379 3,623 3,802Expenses from continuing operationsEmployee costs 1,882 2,010 1,011 1,047 1,890 2,016Materials and contracts 250 193 378 355 995 1,241Borrowing costs - - - - - -Depreciation and amortisation 109 100 133 125 22 23Other operating expenses 952 952 427 422 360 385Loss on disposal of assets - - - - - -NCP imputation payments 45 77 148 110 36 30Total 3,238 3,332 2,097 2,059 3,303 3,695Continuing operations result beforecapital amounts (1,160) (1,386) (590) (680) 320 107Grants and contributions - capital - 268 - - - -Surplus (deficit) before tax (1,160) (1,118) (590) (680) 320 107Corporate taxation equivalent - - - - 96 32Surplus (deficit) for year (1,160) (1,118) (590) (680) 224 75Add: accumulated profi ts brought forward 31 1,072 7,822 8,392 2,324 2,187NCP imputation payments retained 45 77 148 110 36 30Corporate taxation equivalent - - - - 96 32Less: dividends paid - TER - - - - - -- Surplus dividend - - - - - -Accumulated surplus (1,084) 31 7,380 7,822 2,680 2,324Rate of return on capital -13.27% -15.93% -4.45% -5.10% 11.67% 3.87%Notional subsidy from Council for 5.79%ROC (2005 - 5.10% ROC) 1,675 1,830 1,370 1,360 NA 34This incomestatement reportsthe financialperformance of thebusiness activitiesidentified in the2005-09 corporateplan as Category 2businesses(annual grossoperating incomeless than $2mper year).This statement is to be read in conjunction with the attached Notes.Financial Report198

Balance Sheet by Business Activities for the Year Ended 30 June 2006Waste disposal(Cat. 1) $'000Tourist parks(Cat. 1) $'000Health andfitness(Cat. 2) $'000Crematorium andcemeteries(Cat. 2) $'000Marketing(Cat. 2)$'0002006 2005 2006 2005 2006 2005 2006 2005 2006 2005Current assetsCash and cash equivalents 4,986 4,449 - - 281 273 - - - -Investments - - - - - - - - - -Receivables 610 456 264 9 16 22 47 83 254 410Inventories - - - - - - - - - -Other - - - - - - - - - -Total current assets 5,596 4,905 264 9 297 295 47 83 254 410Non-current assetsInvestments - - - - - - - - - -Receivables - - - - - - - - - -Inventories - - - - - - - - - -Property, plant andequipment 37,776 37,035 12,568 12,602 8,742 8,700 13,244 13,338 2,743 2,765Equity accounted investments - - - - - - - - - -Investment property - - - - - - - - - -Other - - - - - - - - - -Total non-current assets 37,776 37,035 12,568 12,602 8,742 8,700 13,244 13,338 2,743 2,765Total assets 43,372 41,940 12,832 12,611 9,039 8,995 13,291 13,421 2,997 3,175Current liabilitiesPayables - - 31 35 - 8 8 3 3 117Interest bearing liabilities - - 237 227 - - - - - 19Provisions 618 227 287 190 410 162 433 120 781 242Total current liabilities 618 227 555 452 410 170 441 123 784 378Non-current liabilitiesPayables - - - - - - - - - -Interest bearing liabilities - - 584 821 - - - - - -Council loan account 16,874 13,047 2,044 2,087 9,575 8,490 5,395 5,182 (487) -Provisions 25,490 24,400 84 229 138 304 75 294 20 473Total non-current liabilities 42,364 37,447 2,712 3,137 9,713 8,794 5,470 5,476 (467) 473Total liabilities 42,982 37,674 3,267 3,589 10,123 8,964 5,911 5,599 317 851Net assets 390 4,266 9,565 9,022 (1,084) 31 7,380 7,822 2,680 2,324EquityOpening retained earnings 4,266 8,182 9,022 9,090 31 1,072 7,822 8,392 2,324 2,187Accumulated surplus (3,876) (3,916) 543 (68) (1,115) (1,041) (442) (570) 356 137Asset revaluation reserve - - - - - - - - - -Total equity 390 4,266 9,565 9,022 (1,084) 31 7,380 7,822 2,680 2,324Special Purpose Financial ReportsThis statement is to be read in conjunction with the attached Notes.This BalanceSheet reports thefinancial positionof the businessactivities identifiedin the 2005-09corporate planas Category 1businesses(annual grossoperating incomegreater than$2m per year)and Category 2businesses(annual grossoperating incomeless than $2mper year).Financial Report199

Note 1 - Significant Accounting PoliciesA statement summarising the supplemental accounting policies adopted in the preparation of the Special PurposeFinancial Reports for National Competition Policy reporting purposes follows.These fi nancial statements are a Special Purpose Financial Report (SPFR) prepared for use by the Council andthe Department of Local Government. For the purposes of these statements, the Council is not a reporting entity.This Special Purpose Financial Report, unless otherwise stated, has been prepared in accordance withAustralian equivalents to International Financial Reporting Standards (AIFRS) as they apply to not-for-profi t entities,other authoritative pronouncements of the Australian Accounting Standards Board (AASB), Urgent Issues GroupConsensus Views, the Local Government Act and Regulations, the Local Government Code of AccountingPractice and Financial Reporting and the Local Government Asset Accounting Manual. The report is based oninformation consistent with that forming the basis of Council's General Purpose Financial Reports (GPFR).The fi nancial report has been prepared on the accrual basis of accounting and, except where specifi callyindicated in these Notes or in the Notes to the General Purpose Financial Statements, in accordance with thehistorical cost convention. Certain taxes and other costs, appropriately described, have been imputed for thepurposes of the National Competition Policy.Notes to the Special Purpose Financial ReportsNational Competition PolicyCouncil has adopted the principle of 'competitive neutrality' to its business activities as part of the nationalcompetition policy which is being applied throughout Australia at all levels of government. The framework for itsapplication is set out in the June 1996 Government Policy statement on the 'Application of National CompetitionPolicy to Local Government'. The 'Pricing and Costing for Council Businesses a Guide to Competitive Neutrality'issued by the Department of Local Government in July 1997 has also been adopted.The pricing and costing guidelines outline the process for identifying and allocating costs to activities and providea standard of disclosure requirements. These disclosures are refl ected in Council's pricing and/or fi nancial reportingsystems and include taxation equivalents; Council subsidies; return on investments (rate of return); anddividends paid.Declared Business ActivitiesIn accordance with Pricing and Costing for Council Businesses - A Guide to Competitive Neutrality, Council hasdeclared that the following are to be considered as business activities:Category 1NameWaste DisposalTourist ParksCategory 2NameHealth and FitnessCrematorium and CemeteriesMarketingBrief Description of ActivityManages the disposal of solid waste generated within the city.Operation, management and development of tourist parks at Bulli,Corrimal and Windang.Brief Description of ActivityResponsible for the management and upkeep of Council'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 visual production, sign writing, market research andcustomer surveys.(i) Taxation Equivalent PaymentsCouncil is liable to pay various taxes and fi nancial duties. Where this is the case, they are disclosed as a cost ofoperations (General Purpose Financial Report) just like all other costs. However, where Council does not pay sometaxes which are generally paid by private sector businesses, such as income tax, these equivalent tax paymentshave been applied to all Council nominated business activities and are refl ected in the SPFR. For the purposes ofdisclosing comparative information relevant to the private sector equivalent the following taxation equivalents havebeen applied to all our nominated business activities (this does not include Council's non business activities).Financial Report200

Note 1 - Significant Accounting Policies (cont.)Notional Rate Applied2006 2005Corporate tax rate 30% 30%Land tax$100 plus 1.7 cents for each $1 by which theland value exceeds a threshold of $352K.Land value $500k - tax =$2,200 plus 1.4 cents foreach $1 by which the taxable value exceeds $500k.Payroll tax 6.0% ($600,000 annual wages threshold) 6.0% ($600,000 annual wages threshold).Corporate Taxation EquivalentA corporate tax equivalent has been applied on the profi ts of the business. Whilst corporate tax is not a specifi ccost for the purpose of pricing a good or service, it needs to be taken into account in terms of assessing the rateof return required on capital invested. Accordingly, the return on capital invested 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 shouldinclude a provision equivalent to the corporate income tax rate, currently 30% (2005 - 30%).Corporate tax is only applied where a gain from ordinary activities before capital amounts has been achieved.Since the taxation equivalent is notional, that is, it is payable to the 'Council' as the owner of business operations,it represents an internal payment and has no effect on the operations of the Council.Accordingly, there is no need for disclosure of internal charges in the GPFR. The rate applied of 30% is theequivalent corporate tax rate prevalent as at balance date.Local Government Rates and ChargesA calculation of the equivalent rates and charges for all business activities has been applied to all assets owned orexclusively used by the business activity.Loan and Debt Guarantee FeesThe debt guarantee fee is designed to ensure that Council business activities face 'true' commercial borrowingcosts in line with private sector competitors. In order to calculate a debt guarantee fee, Council has determinedwhat the differential borrowing rate would have been between the commercial rate and the Council's borrowing ratefor its business activities.(ii) SubsidiesGovernment policy requires that subsidies provided to customers and the funding of those subsidies must beexplicitly disclosed. Subsidies occur where Council provides services on a less than cost recovery basis.This option is exercised on a range of services in order for Council to meet its community service obligations.The overall effect of subsidies is contained within the Income Statement by Business Activities.Notes to the Special Purpose Financial Reports(iii) Return on Investments (Rate of Return)The Policy statement requires that councils with Category 1 businesses 'would be expected to generate a returnon capital funds employed that is comparable to rates of return for private businesses operating in a similar fi eld'.Funds are subsequently available for meeting commitments or fi nancing future investment strategies. The rate ofreturn is disclosed for each of Council's business activities on the Income Statement by Business Activities.Financial Report(iv) DividendsCouncil is not required to pay dividends to either itself as owner of a range of businesses or to any externalentities. Consequently, any form of dividend payment is purely notional. Dividend payments to Council are alsorestricted to those activities which do not levy special rates or charges (ie: domestic waste management). DomesticWaste Management is the only restricted activity operated by Council. The Local Government Act 1993 requiresthat all operating surpluses or defi cits of these funds are credited/debited to the equity of those funds.201

Independent Auditor's ReportFinancial Report202

Special Schedule No 1 Net Cost of Services for the Year Ended 30 June 2006Function or activityOperating expenses Operating revenues Net cost of servicesExpenses$'000Grouptotals$'000Revenues- ordinaryactivities$'000Capital rev.ordinaryactivities$'000Grouptotals$'000Net cost$'000Corporate GovernanceOmbudsman and internal audit 122 - - 122Executive management group 2,687 9 - 2,678Support to external organisations 234 - - 234Corporate Governance 3,043 9 3,034Grouptotals$'000Community and Cultural ServicesYouth services 726 146 - 580Planning and service development 265 45 - 220Transport services 379 723 - (344)Respite services 887 653 - 234Community development services 840 277 - 563Volunteering 183 197 - (14)Children and family services 217 32 - 185Housing 63 35 - 28Social planning 295 24 - 271Facilities for children 46 9 - 37Facilities for aged 31 12 - 19District multi purpose 472 711 - (239)Local multi purpose (NC and CC) 111 208 - (97)Community halls 143 24 - 119Miscellaneous centres 4 6 - (2)Facilities support 292 - - 292Incorporated cultural facilities 1,454 102 - 1,352Cultural program development 614 38 - 576Community and Cultural Services 7,022 3,242 3,780Commercial DevelopmentProperty development 243 21 - 222Tourist parks 2,492 3,720 - (1,228)Crematorium and cemeteries 1,452 1,506 - (54)Property management 258 1,939 - (1,681)Statutory property 152 394 - (242)Commercial Development 4,597 7,580 (2,983)Special SchedulesCity Planning and DevelopmentEconomic development 1,054 - - 1,054City centre and Crown St Mall 1,349 169 - 1,180New release area planning 1,031 842 - 189Land use strategies 687 186 - 501Urban renewal and civic improvement 719 8 - 711Heritage 100 10 - 90Traffi c and transport planning 122 1 - 121Traffi c engineering and management 671 254 - 417Financial Report203

Special Schedule No 1 Net Cost of Services for the Year Ended 30 June 2006 (cont.)Function or activityOperating expenses Operating revenues Net cost of servicesExpenses$'000Grouptotals$'000Revenues- ordinaryactivities$'000Capital rev.ordinaryactivities$'000GroupTotals$'000Net Cost$'000City Planning and Development (cont.)Development assessment advice 119 - - 119Subdivision approval determination 284 153 - 131Subdivisions compliance 361 54 - 307Development assessment 1,419 2,224 - (805)Building assessment 994 527 - 467Compliance inspections 307 21 - 286Fire safety 100 - - 100City Planning and Development 9,317 4,449 4,868Grouptotals$'000Environmental ManagementNatural asset protection 462 229 - 233Environmental Management 462 229 233Special SchedulesFinancial ReportEnvironment and HealthHygiene inspections and registrations 303 94 - 209Health promotion 78 - - 78Swimming pools and cooling towers 126 85 - 41Environmental protection 188 3 - 185Companion animal management 442 181 - 261Management of unauthorised development 86 - - 86Parking control 574 1,145 - (571)Environmental management and enhancement 1,164 102 - 1,062Pollution minimisation 572 21 - 551Environmental monitoring 141 - - 141Environment and Health 3,674 1,631 2,043InfrastructureBuilding construction 1,728 - - 1,728Building maintenance 4,629 11 - 4,618Building operations 1,751 242 - 1,509Plant and vehicles 7,192 495 - 6,697Workshop 654 18 - 636Commercial plant activities 58 24 - 34Stores 501 4 - 497Coastal rehabilitation works - - - -Engineering services 193 197 - (4)Programmed hazard reduction 4 - - 4Community education 4 - - 4Emergency planning and management 3,337 386 - 2,951Design services 2,578 1 - 2,577Street lighting 2,350 387 - 1,963Flood mitigation (671) 2,095 - (2,766)Stormwater management 815 150 - 665204

Special Schedule No 1 Net Cost of Services for the Year Ended 30 June 2006 (cont.)Function or ActivityOperating expenses Operating revenues Net cost of servicesExpenses$'000Grouptotals$'000Revenues- ordinaryactivities$'000Capital rev.ordinaryactivities$'000Grouptotals$'000Net cost$'000Infrastucture (cont.)Asset management planning 19,069 - - 19,069Infrastructure asset assessment 154 - - 154Maintenance 7,914 1,475 - 6,439Construction 2,290 2,241 - 49Works depots 764 1 - 763Materials testing and analysis 216 - - 216Research programs 84 - - 84Technical advice 81 - - 81Infrastructure 55,695 7,727 47,968Grouptotals$'000Library ServicesDirectories and information 50 - - 50Library administration 1,189 85 - 1,104Branch libraries 1,631 96 - 1,535Central library 2,042 539 - 1,503Acquisitions 1,206 32 - 1,174Library Services 6,118 752 5,366Organisational ServicesEmployee services 543 - - 543Industrial relations 81 - - 81Organisational development 1,991 132 - 1,859Personnel services 6,958 24 - 6,934Financial accounting 1,623 401 - 1,222Funds management 1,113 - - 1,113Management accounting 491 - - 491Rates 1,854 2,554 - (700)IT procurement services 1,325 - - 1,325IT support services 1,421 2 - 1,419Organisational services and maintenance 3,092 87 - 3,005Council administration 749 - - 749Legal services 2,221 6 - 2,215Risk management services 2,432 356 - 2,076Internal clients 2,342 - - 2,342Commercial clients 338 506 - (168)Affi liated clients 211 183 - 28Mapping services 1,538 6 - 1,532Corporate planning 159 - - 159Business improvement 245 - - 245Communications and promotions 627 118 - 509Civic activities and international relations 542 54 - 488Media 364 - - 364Organisational Services 32,260 4,429 27,831Special SchedulesFinancial Report205

Special Schedule No 1 Net Cost of Services for the Year Ended 30 June 2006 (cont.)Function or activityOperating expenses Operating revenues Net cost of servicesExpenses$'000Grouptotals$'000Revenues- ordinaryactivities$'000Capital rev.ordinaryactivities$'000Grouptotals$'000Net cost$'000Recreation and Natural ResourcesParks administration 4,144 - - 4,144Parks and open spaces 5,360 876 - 4,484Sportsfi elds and facilities 1,650 598 - 1,052Playgrounds 450 75 - 375Botanic garden 1,925 202 - 1,723Natural resource management 1,378 111 - 1,267Pools and beaches 4,915 546 - 4,369Leisure centres 2,414 2,370 - 44Cityswim - - - -Recreation and Natural Resources 22,236 4,778 17,458Grouptotals$'000Waste ManagementDomestic waste 10,099 688 - 9,411Street and gutter cleaning 1,992 - - 1,992Privies 418 - - 418Non domestic waste 85 274 - (189)Sullage depots 21 2 - 19Waste disposal centres 5,784 4,001 - 1,783Waste Management 18,399 4,965 13,434Special SchedulesTotals - functions 162,823 39,791 123,032General purpose revenuesRates 85,486 - 85,486Domestic waste 14,604 - 14,604Funds management 4,928 - 4,928Financial accounting 11,359 - 11,359Maintenance 1,567 - 1,567117,944 117,944Surplus (deficit) from all activities (5,088)Financial ReportThis specialschedule showsoperatingexpenses,operating incomeand the net costof each of ourfunctions and theactivities of eachfunction. Thefunctions andactivities are asreported inthe 2005-09corporate plan.206

Special Schedule No 2 (1) Statement of Long Term Debt (All Purpose)for the Year Ended 30 June 2006$'000Classificationof debtLoans (by source)CommonwealthgovernmentPrincipal outstanding atbeginning of yearCurrent$'000Non-current$'000Total$'000Newloansraised$'000Debt redemptionFromrevenue$'000Sinkingfunds$'000Transfersto sinkingfunds$'000Interestapplicablefor year$'000Current$'000Principal outstanding atend of yearNon-current$'000Total$'000- - - - - - - - - - -TreasurycorporationOther stategovernment- - - - - - - - - - -76 306 382 - 76 - - 16 76 230 306Public subscription - - - - - - - - - - -Financial151 515 666 - 151 - - 40 161 354 515institutionsOther - - - - - - - - - - -Total loans 227 821 1,048 - 227 - - 56 237 584 821Other long term debtRatepayers'advances- - - - - - - - - - -Governmentadvances- - - - - - - - - - -Finance leases 1,202 3,139 4,341 2,404 1,371 - - 326 1,177 4,197 5,374Deferred payment - 12,590 12,590 684 - - 682 684 13,274 - 13,274Other - - - - - - - - - - -Total otherlong term debt1,202 15,729 16,931 3,088 1,371 - 682 1,010 14,451 4,197 18,648Total longterm debt1,429 16,550 17,979 3,088 1,598 - 682 1,066 14,688 4,781 19,469This schedule excludes internal loans and refi nancing of existing borrowings.Council must applyeach year to theMinister of LocalGovernment fora borrowing limit.The debt we takeup in a particularyear (new loansraised) must notexceed that year'sborrowing limit.Special SchedulesFinancial Report207

Special Schedule No 7 Condition of Public Works as at 30 June 2006Asset classBuildings andother structuresAssetcategoryDepreciationrate (%)Depreciationexpense$'000Cost$'000Valuation$'000References Note 1 Note 4 Note 9Buildings andother structuresAccumulateddepreciation$'000Carryingvalue$'0001-20 2,192 144,156 - 16,779 127,377Subtotal 2,192 144,156 - 16,779 127,377Public roads Sealed roads 2.38 - 7.25 12,463 513,331 - 120,255 393,076Unsealed roads 2.38 - 7.25 260 3,614 - 1,358 2,256Bridges 1.42 376 26,197 - 3,474 22,723Footpaths 3.84 1,174 33,002 - 10,378 22,624Cycleways 2.92 231 11,975 - 2,585 9,390Kerb and gutter 1.68 2,009 120,065 - 19,197 100,868Road furniture 8.26 - 15.92 202 4,211 - 2,574 1,637Subtotal 16,715 712,395 - 159,821 552,574Drainage works Stormwater 1 1,447 146,510 - 14,095 132,415Subtotal 1,447 146,510 - 14,095 132,415Total classes- all assets20,354 1,003,061 - 190,695 812,366This specialschedule givesdetails of thecondition of ourpublic works perclass of asset andshows a gap infunding required,compared toactual funding.This gap is beingaddressed throughrate increasesand new assetmanagementstrategies forthe future.This schedule is to be read in conjunction with the explanatory notes following.Special SchedulesAsset classBuildings and otherstructuresAssetcategoryReferencesBuildings andother structuresAssetcondition(see notesattached)Estimated costto bring to asatisfactorystandard$'000Estimatedannualmaintenanceexpense$'000Local Government Act 1993, section 428 (2d)Programmaintenanceworks for currentyear $'0003 31,917 10,000 4,676Subtotal 31,917 10,000 4,676Public roads Sealed roads 3 137,304 17,651 9,170Unsealed roads 3 2,458 261 132Bridges 3 5,362 850 50Footpaths 3 19,636 1,259 3,388Cycleways 2 878 430 194Kerb and gutter 2 40,587 5,994 171Road furniture 2 4,518 605 1,029Subtotal 210,743 27,050 14,134Drainage works Stormwater Unknown 110,412 2,964 1,186Subtotal 110,412 2,964 1,186Total classes - all assets 353,072 40,014 19,996This schedule is to be read in conjunction with the explanatory notes following.Financial Report208

Special Schedule No 7 Condition of Public Works (cont.)Condition of Public AssetsIn assessing the Condition of Public Assets, Council has considered the existing condition and function of eachasset. Proposed or potential enhancements to the existing asset have been ignored. Assets within each categoryhave been assessed on an overall basis even though a number of individual assets may be above or below thespecifi ed rating. Council recognises that the rating used 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 is as new.4 Good Building or asset exhibits superfi cial wear and tear, minor signs of deterioration to surfacefi nishes, but does not require major maintenance and no major defects exist.3 Fair Building or asset is in average condition, deteriorated surfaces require attention, anddeferred maintenance work exists.2 Poor Building or asset has deteriorated badly, serious structural problems, general appearance ispoor with eroded protective coatings, elements are defective, services are frequently failingand a signifi cant number of major defects exist.1 Very Poor Building or asset has failed, is not operational and unfi t for occupancy or normal use.Asset Condition - Civil Infrastructure Other Than Sealed RoadsVarious civil infrastructure asset types were assessed during 2005-06 and given condition rating based on thedescriptions below. The rating of individual assets was collated to provide an average condition rating for eachasset type reported.1 Very Good Infrastructure is fi t for its current and anticipated purpose in terms ofinfrastructure condition.2 Good Minor repairs are required to enable the infrastructure to be fi t for its current oranticipated purpose.3 Adequate Maintenance required to be fi t for its current and anticipated purpose.4 Poor Major maintenance required to be fi t for its current and anticipated purpose.5 Inadequate Inadequate for current and future needs, asset needs replacement.Asset Condition - Sealed RoadsPavements were assessed during 2005-06 using the NSW Roads and Traffi c Authority's Road Condition Manual- ROCOND 90. Condition scores are derived for each individual road link and converted into a Pavement ConditionIndex (PCI). The condition rating for each of the 1,200 (approximately) road links was averaged out to calculate anoverall Pavement Condition Index (PCI) for the entire road network.The condition assessment scoring system used was the same as for civil infrastructure assets other than sealedroads ie 1-5.Asset Condition - Stormwater DrainageDuring 2005-06, condition assessments were conducted on approximately 6% of the urban stormwater drainagenetworks. The condition assessment for the 3,000 (approximately) pipes, pits, culverts and headwalls in the 6%of the network were averaged out to obtain an overall condition assessment for the 6% of the network assessed.The average condition rating of the 6% of the network was then assumed to be representative of theentire network.The condition assessment scoring system used was the same as for civil infrastructure assets other than sealedroads ie 1-5.Financial Report Special Schedules209

Special Schedule No 8 Financial Projections as at 30 June 20062006 (1)$'000,0002007$'000,0002008$'000,0002009$'000,0002010$'000,0002011$'000,000Recurrent budgetIncome from continuing operations 158 153 158 163 167 172Expenses from continuing operations 163 169 176 177 180 184Operating result from continuing operations (5) (16) (18) (14) (13) (12)Capital budgetNew works (2) 9 33 23 22 13 12Replacement of existing assets - - - - - -9 33 23 22 13 12Funded by• Loans - - - - - -• Asset Sales - - - - - -• Reserves 3 1 2 3 - -• Grants/Contributions 3 10 11 10 6 5• Recurrent revenue 3 22 10 9 7 7• Other - - - - - -9 33 23 22 13 12Notes:(1) From Income Statement(2) New capital works are major non-current projects, eg new leisure centre, new library, new swimming pool, etc.This specialschedule showsactual results forthe year ending30 June 2006 andfinancial projectionsfor the next fivereporting periods.Special SchedulesFinancial Report210

National 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 playing fi eld' for people competing for business and, particularly, relates to situations where competition is between the privateand public sectors.This underlying philosophy is aimed at enhancing competition and subsequently creating greater effi ciency and lower costs to boththe government and the community.Local government councils are required to identify what its business activities are and categorise these businesses as Category 1(annual gross operating income greater than $2m per year) and Category 2 (annual gross operating income less than $2m per year).Council must report on its Category 1 and 2 businesses as at 30 June 2006.Wollongong City Council has identifi ed the following businesses for the purpose of competitive neutrality.Category 1 Category 2• Waste Disposal • Health and Fitness• Tourist Parks • Crematorium and Cemeteries• MarketingThe methods used in determining the pricing policies of each of Council's business activities are based on the projectedperformance of each of these activities. The pricing policy for each business activity is identifi ed in Council's fees and chargesdocument, an annexure to the corporate plan. The performance of each business activity is reported in the Special Purpose FinancialReports (Statement of Financial Performance by Business Activity and Statement of Financial Position by Business Activity). TheseSpecial Purpose Financial Reports are included within this document. The actual performance of each business activity for the 2005-06 fi nancial year was generally in line with projections.Competitive Neutrality ComplaintsUnderpinning competitive neutrality is the need to properly recognise the full costs of Council's business activities. This allowscomparisons to be made with competitors in the same marketplace and provides information that will allow Council to determinepricing policies for each business.Wollongong City Council has developed a framework that will allow the full cost of each business activity to be identifi ed. This systemis referred to as FACTS (Full Activity Costing To Services). The Special Purpose Financial Reports (Statement of Financial Performanceby Business Activity and Statement of Financial Position by Business Activity) are prepared using full costs derived from theFACTS system.Emphasis has been placed on developing an awareness of the Trade Practices Act, in particular Part IV of that Act and a complaintshandling system has also been implemented to monitor all complaints relating to competitive neutrality. To date, no such complaintshave been received. Nothing has been done so far in order to make the complaints handling mechanism known to the public.In summary, Council has embraced the principles of the National Competition Policy and has developed a business reporting facilitythrough its corporate plan and business planning processes.Controlled EntitiesThe accounts of the Council's controlled entities are shown as follows:Change in Net Assets Resulting from Operations30/06/06$'00030/06/05$'00030/06/06$'000Total Equity30/06/05$'000Controlled entitiesWollongong City Gallery Ltd 44 216 5,229 5,185Illawarra Performing Arts Centre Ltd * 41 53 264 223Wollongong City Centre Ltd -51 90 65 117Wollongong City of Innovation Ltd 69 4 35 43* Illawarra Performing Arts Centre has changed its reporting period to a calendar year - the change in net assetsrepresents the twelve month period from 30/12/04 to 31/12/05 and total equity is as at 31/12/05.Local Government Requirements211

Freedom of Information Act Applications - 2005-06The Freedom of Information Act provides for a legally enforceable right for people to obtain access to informationthat Council holds. One of Council's values is to be an open and accessible organisation and any person whowishes to obtain access to information held by Council is encouraged to contact our public offi cer for assistance.Formal applications for access to information were received as follows:Month Name of applicant Processing timestatutory limit 21 daysJuly Nil N/AAugust Nil N/ASeptember Nil N/AOctober Nil N/ANovember Nil N/ADecember Nil N/AJanuary Nil N/AFebruary Nil N/AMarch Nil N/AApril Nil N/AMay Maguire and McInerney 15 daysJune MacPherson 20 daysStatement of Rates and Charges Written OffRates and charges totalling $2,068,041 were written off during the period 1 July 2005 to 30 June 2006 inaccordance with the Local Government Act 1993. This compares to rates and charges of $1,664,962 being writtenoff in the period 1 July 2004 to 30 June 2005. Allowance is made for such write offs in Council's annual budget.Rates and charges written off are summarised hereunder:Section 600 rebates $204,826.00Valuation objections $378,014.00Journal credits (re-rated/non-rateable) $229,354.00Postponed rates (1996-97) $84,645.00Postponed interest (1996-97) $44,960.55Pensioner rate concession (voluntary) $1,017,152.00Pensioner interest $19,996.00Journal interest write offs $11,161.00Domestic waste management charges $77,932.00Total $2,068,040.55Local Government RequirementsS356 Contributions for DisclosureWollongong City Gallery Ltd $719,030.00Illawarra Performing Arts Centre Ltd $591,407.00Illawarra Regional Information ServiceNilTourism Wollongong $442,900.00Wollongong City Centre Ltd $736,370.00Total Commitment $2,489,707.00(Disclosures are based on contributions reported on last year)212

Summary Legal ProceedingsA summary of amounts incurred for legal proceedings by and against Council during 2005-06 is as follows:Particulars Finalised Expenses ReceiptsPL and PI claims and potential claims against CouncilMotor vehicle accidentAssault at Council facilityMotor vehicle accidentAccident on pedestrian crossingDrainageDog attackBike accidentInjury at Council playing fi eldUnconscionable land transferAlleged assault - verdict for CouncilAlleged assault - verdict for CouncilMotor vehicle and motor bike collision - verdict for CouncilTrip on Council land - verdict for plaintiffNoNoNoNoNoNoNoNoNoYesYesYesYes$4,348$32,060$19,038$9,388$29,380$15,225$5,830Nil$2,149$4,277$893$9,681$121,318NilNilNilNilNilNilNilNilNil$26,000$100,000$52,500NilStatutory liability claims and potential claimsObjection to proposed use by Council of beachfront land at Thirroul No Nil NilCouncil prosecutionsDamage to hanging swamp - Stanwell TopsRectifi cation of lease - Stuart Park, North WollongongUnauthorised development - New Mt Pleasant Road, Pleasant HeightsFailure to pay Clean up Notice fee - Morrison Ave, WombarraClaim by Council for professional negligenceUnauthorised clearing of land - Callistemon Road, UnanderraUnauthorised fi lling of land - James Road, Mount KemblaAction against unauthorised development - Avon Parade, Mount KemblaNoYesYesYesNoYesNoYes$14,651$762,389$4,640$13,493$7,300$5,971$13,941$13,493NilNilNilNIlNilNilNilNilAppeals against CouncilDeemed refusal of DA - Market Street, WollongongRefusal of DA - 7(d) zoned land, Park street, HelensburghRefusal of DA - Crown Street, WollongongOrder to revegetate land - Darkes Forest RoadRefusal of DA - Cordeaux Road, FigtreeConditions of DA - Smith Street, WollongongRefusal of DA - Boronia Street, WindangObjection to development consent - Dwyers site, Corrimal street, WollongongObjection to development consent - Port Kembla outer harbour foreshoreOrder to comply with DA - Arter Avenue, FigtreeYesNoYesNoYesYesYesNoNoNo$2,367$15,501$26,508$3,647$2,921$11,129$17,445$14,021$16,899$39,532NilNilNilNilNilNilNilNilNilNilAppeals against infringement noticesParking infringementsDevelopment without consentBreach Tree Management OrderDeposit litterFailure to supply Fire StatementYesYesYesYesYes$3,366$128$65$65$65$8,974$900$1,000$300$500Local Government Requirements213

Stormwater Management ChargesThe Stormwater Management Charge is effective for the 2006-07 fi nancial year and therefore does not cover thisannual report. However the projected expenditure of the stormwater management charge is as follows:Council's budget includes funding for fl oodplain and stormwater management operational and capital works.The new charge will contribute only a fi fth (20%) of the overall allocation. The breakdown of the budget is shown inthe table below:% Contribution BudgetStormwater Management Charge 20 1.6mGrants 36 2.9mCouncil General Revenues 44 3.6mThe proposed funding expenditure for stormwater has not changed with the new charge.Privacy and Personal Information Protection Act 1998The Act requires Council to comply with Information Protection principles which relate to the collection, storage,access, use and disposal of personal information that Council holds. Council is also bound by the Privacy Codeof Practice for Local Government. Copies of both documents are available from our Public Offi cer at the Counciladministration building.Employment, Equity and Diversity (EED)2005-06 has seen the commencement of refocusing EEO to refl ect Employment, Equity and Diversity (EED).A new EED management plan has been embraced by the organisation for the period 2006-09.Council is committed to the development and implementation of the EED management plan which formalises ourdirection and objectives in relation to EED, and highlights a set of principles designed to ensure that all decisionsmade within Council are based on merit and sound management practices. The plan sets broad goals for theorganisation for a defi ned period which is refl ected by the identifi cation and inclusion of projects as part of thebusiness planning cycle. This will assist in making EED an integral part of the workplace culture and central to theeveryday functioning of Council.The main outcomes of our EED program are:• To ensure all employees and prospective employees are treated in an equitable manner;• To identify inequalities in employment, training, development and promotion within the organisation;• To provide and implement an EED management plan to provide direction and objectives for the organisation;• To identify business plan projects to redress identifi ed inequalities and promote diversity;• To ensure that development, application and monitoring of human resource policies and practices are consistentwith EED principles;• To provide employees with a means for resolution of grievances.Specifi cally through its EED management plan and policies, Council is seeking to create a working environmentthat is free of discrimination and is based on merit and equality of access to employment, promotions and learningand development activities. By having a workforce that is more representative of the community we serve, Councilcan continue to improve its service provision through a better understanding of the community's needs.Local Government Requirements214

Contracts Awarded by CouncilIn accordance with Section 428(2)(h) of the Local Government Act 1993 the following is a list of contracts awardedduring the period 1 July 2005 to 30 June 2006 (whether as a result of tender or otherwise) other than employmentcontracts and contracts for less than $150,000.Tender Number(if applicable)Name of Contractor Contract Description Contract Amount$T05-14 Delldem License to operate Brighton Lawn Kiosk $315,000.00T05-16 Heyday Group Corrimal Caravan Park electrical tender $273,860.00T05-17 Heyday Fire services upgrade administration building $139,860.00T05-19 Marine Dock Systems Provisional of supply and installation of pontoons and access ramps to theleachate dams - Whytes Gully Waste Depot$146,500.00T05-20 Cardno Eppell Olsen City Centre Bus and Traffi c Management Plan $179,000.00T05-21 Kingston Industries Whytes Gully Waste Disposal Depot access road $718,796.02T05-22 United CribBlock ConstructionsConstruction of Crib Block retaining wall, Princes Highway, Corrimal $380,500.00T05-24 Thiess Services Green waste collection and processing $17,531,815.00T05-28 Manteena Amenities block Hollymount Park, Woonona $414,664.00T06-07 Hunter ValleyTraining CompanyEmployment and management of apprentices and trainees for Council $255,504.00T06-11 Deane Constructions Construction of picnic shed at Integral Energy Recreation Park $232,645.00Services and Programs for Children and YouthCommunity and Cultural Services• Coordinated the Purple Ribbon Campaign throughout July 2005 with the objective of raising awareness of childabuse in the community. This included the distribution of purple ribbons throughout the community, informationstalls and training for staff working with children affected by abuse.• Coordinated the 'School Starters Picnic' in late 2005 to recognise and celebrate this important time in the livesof the cities children.• In partnership with South Eastern Sydney and Illawarra Area Health and a range of local community organisationsa number of activities for grandparents were held throughout the year. This included a story time session,information sessions and a grandparent's picnic.• A range of activities to promote and celebrate the place of children within the city were combined with otheractivities held throughout the year.• The development control plan for child care centres was adopted in February 2006. This development controlPlan encourages the provision of high quality child care and child care centres based on best practice principlesand is an important tool when considering the built environment and its affect on children.LibraryThe library provides a wide range of programs and activities for both children and youth.Over the past year the following initiatives have been implemented:• The year began with an inaugural rock concert featuring local bands in the Central Library. The concert wasenthusiastically received by over 70 young people and it is intended to repeat this in the coming year.• The new Library Management System was launched in June. Included in this system is a separate KidsCatalogue which uses pictorial icons to guide children in the use of the catalogue.• HSC lending collections were established at the larger libraries. These contain a selection of resources to assiststudents studying for the HSC examinations.• A Youth Advisor Group was established to assist in the development of appropriate services and activitiesfor youth.Local Government Requirements215

Local Government Requirements127216Services and Programs for Children and Youth (cont.)Communications and Public RelationsWe worked with the staff of Wollongong Youth Services to better target media releases relating to youth activities.Because of the specifi c audience of these messages, we developed a strategy to ensure Youth Services mediareleases had a clear identity and did not get overshadowed by the broader corporate identity of Council.Recreation and Natural Resources• The Discovery Centre at the Wollongong Botanic Garden presented a wide range of activities for children duringthe school holiday periods and also school curriculum related programs during term. The centre's programsare based on environmental issues presented through drama, craft and fun activities held within the centre, thegrounds of Gleniffer Brae and the natural area annexes such as Puckey's Estate and Mt Keira.• The 'My Favourite Plant' competition was held during the year at the Discovery Centre, aimed at engaging localschool children in botanical research and interpretation.• National Tree Day was held at Wollongong Greenhouse Park for families and children.• The Surf Sense program was presented to school children throughout the Illawarra.• Learn to swim activities were held at Beaton Park Leisure Centre with 4,500 enrolments during the year.• Beaton Park continued with its successful junior program which included a range of activities such as RunningCrew Athletics, Junior Circuit Training and Hip Hop Dance. The weekly sessions regularly attracted a largenumber of children keen to keep active and healthy. The Athletic Track saw a large increase in school usagethrough carnivals and competitions.• Lakeside Leisure Centre has had a great deal of success with the running of its children's program Exerkids.The program exposes children to a wide range of activities including circuit, group exercise, tennis and racquetball. Regular assessments are conducted to measure individual improvement, and the centre providesencouragement and recognition to participants.• Lakeside Leisure Centre was also involved in a crossroads program run in conjunction with Dapto High School.The centre offered a mind and body program to year 11 students to help with stress management. Thesestudents were encouraged to maintain a healthy active lifestyle. This program benefi ted the students andthe centre, and we have now attracted more clientele to the centre to participate in group exercise and fi tness.Environment and Health• The annual Rise and Shine campaign actively targets school children through innovative programs designed toimprove their local school environment.• The Eco citizens program engaged 16 schools and more than 900 students in environmental activities at MtKeira Rainforest and within their school grounds. The program promoted student participation and ownership ofenvironmental initiatives within each school through a facilitated project planning process.• World Environment Day was again hosted at Wollongong Botanic Garden with over 1,000 children attending 26practical environmental workshops.• Glengarry Waste Education and Visitor Centre coordinates a range of fun waste wise activities. Topics includerecycling, green cleaning, smart shopping, composting, worm farming and craft activities. Children's and youthworkshops were conducted through school groups, multicultural groups and school holiday activities.

Senior Management Remuneration PackagesPayments to senior management are made through remuneration packages and are on total employment costbasis. The amounts comprising each senior manager's remuneration package is detailed in the table below:PositionTotalValue$Salary$BonusPaymentsSuperannuationNon CashBenefitsF.B.T.NoteChief Executive Offi cer 271,485 236,324 0 16,009 13,955 5,197Chief Financial Offi cer 178,381 158,314 0 12,123 5,009 2,935Chief Operating Offi cer 37,972 28,519 0 7,594 1,060 799 2Group Manager People and Culture 157,538 128,797 0 18,228 4,572 5,941Group Manager Sustainability 168,741 129,606 0 28,077 4,992 6,066Manager Commercial Projects and Property 128,671 109,734 0 10,327 3,939 4,671Manager Communications and Public Relations 124,643 102,532 0 16,413 2,384 3,314Manager Community and Cultural Services 131,400 100,651 0 15,579 8,129 7,041Manager Design 145,200 117,783 0 15,114 9,136 3,167Manager Development Assessment and Compliance 133,003 109,537 0 10,220 4,477 8,769Manager Economic Development 120,000 106,446 0 9,882 1,733 1,939Manager Environment and Health 101,032 86,348 0 7,910 3,400 3,374 3Manager Finance 131,400 100,651 0 15,579 8,129 7,041Manager Forte Marketing and Design 135,000 115,197 0 13,738 3,091 2,974Manager Human Resources and Industrial Relations 124,182 101,181 0 15,631 3,574 3,796Manager Library Services 119,411 97,153 0 14,239 3,906 4,113Manager Recreation and Natural Resources 143,100 N/A N/A N/A N/A N/A 1Manager Strategic Planning 130,000 104,059 0 25,941 0 0Manager Technology and Administration 137,658 107,161 0 16,114 9,796 4,587Manager Works and Services 147,488 80,880 0 57,339 4,197 5,072TOTAL 2,766,305 2,132,313 0 321,664 90,777 78,451Note 1 Position vacant as at 30/6/06Note 2 Manager commenced April 2006Note 3 Manager was on unpaid parental leave for part of year.217127Local Government Requirements

Payment of Expenses and Provision of Facilities to Lord Mayor,Deputy Lord Mayor and CouncillorsObjectiveTo provide a policy in accordance with Section 252(1) of the Local Government Act 1993 for the payment of expenses and theprovision of assistance to councillors discharging their functions on behalf of Council.Policy Statement1. Council meet reasonable expenses incurred or to be incurred by councillors in undertaking their function as a councillor.2. Council provide facilities for the Lord Mayor, Deputy Lord Mayor and councillors to enable them to discharge their functions onbehalf of Council.Statement of ProceduresThis policy excludes annual fees paid to the Lord Mayor, Deputy Lord Mayor and councillors under Sections 248-251 inclusive of theLocal Government Act.1. Payment of Expenses Incurred or to be Incurred(a) Lord Mayor(i) Civic Functions, Seminars and Conferences - Expenses in regard to registration, travel, accommodation and sustenance (seePolicy 10.12 - Travel Policy for Councillors and Offi cers).(ii) Travel Allowance - If the Lord Mayor is required to use their private vehicle, an allowance will be paid equal to the rate applying totravel by Council employees specifi ed in Council's Enterprise Agreement - Salaried Division. The allowance takes into account the use,maintenance and depreciation of the vehicle.(iii) Community Functions - Where the Lord Mayor accepts an invitation to attend a community function in the role of Lord Mayor,Council shall meet all costs associated with such attendance (entry, hire of special dress), excluding travel costs.(iv) Lord Mayor’s Spouse/Partner - The Lord Mayor's spouse/partner may accompany them on Council business trips and tofunctions subject to all expenses incurred being repaid to Council.Local Government Requirements218(b) Deputy Lord Mayor and Councillors(i) Civic Functions, Seminars and Conferences - Expenses in regard to registration, travel, accommodation and sustenance(see Policy 10.12 - Travel Policy for Councillors and Offi cers).(ii) Travel Allowance for Official Council Business -• Private vehicle - If a councillor is required to use their private vehicle, an allowance will be paid equal to the rate applying to travelby Council employees. This allowance takes into account the use, maintenance and depreciation of the vehicle.• Public transport - Councillors travelling by taxi or other means of public transport shall be reimbursed for actual expenses incurred.• Offi cial Council business - 'Offi cial Council business' includes, but is not limited to, attendance at the following:- All Council and committee meetings including Council reference groups and councillor briefi ng forums.- Civic receptions.- Meetings and inspections where resolved by Council.- Authorised conferences, seminars and training.- Informal planning conferences.- Meetings of external organisations where the councillor is an elected Council delegate or alternate delegate.- Where councillor attendance is required as indicated on the corporate diary.But excludes attendance at the following:• Neighbourhood committee meetings.• Meetings and inspections that have not been resolved by Council.• Attendance at other community functions and meetings.(iii) Community Functions - Where a councillor accepts an invitation to attend a community function in the role of councillor, Councilshall meet all costs associated with such attendance (entry, hire of special dress), excluding travel costs.(iv) Councillor’s Spouse/Partner - A councillor's spouse/partner may accompany them on Council business trips and to functionssubject to all expenses incurred being repaid to Council.

Payment of Expenses and Provision of Facilities to Lord Mayor,Deputy Lord Mayor and Councillors (cont.)2 Provision of Facilities(a) Lord Mayor(i) Motor Vehicle - A fully serviced and maintained motor vehicle of a standard equivalent to Ford LTD/Holden Caprice. Servicingensures the vehicle is fuelled, serviced and cleaned ready for use daily.(ii) Office - A furnished offi ce suite located on the tenth fl oor of the administration building.(iii) Communication Systems -• A mobile phone or Telstra Blackberry will be provided with a copy of the monthly account being made available to the Lord Mayorfor information.• A broadband internet connection will be provided (where available) through Council's service provider in the Lord Mayor's home ornominated location. Use of the Internet will require compliance with Council's Computer Usage Policy.• Where broadband internet connection is not available, Council will provide a dial-up internet connection.• A Council laptop computer will be provided in the Lord Mayor's home or nominated location. Maintenance and other servicing willbe provided through Council's IT Help Desk service. All maintenance will be a 'back to base' service.• A printer/fax will be provided, serviced and maintained in the Lord Mayor's home or nominated location and a copy of the monthlyaccount will be provided for to the Lord Mayor for information.• Mobile phone/Blackberry and call expenditure via the Council provided home telephone line/s will be capped at a combinedexpenditure of $3,000 per annum. Any expenditure in excess of $3,000 will be deducted from the Lord Mayor's monthlyfee payment/s.(Note: Per annum means the period from the second Saturday in September to the second Friday the following September.)All home offi ce technology provision is to be returned to Council one working day prior to the Local Government elections.(iv) Credit Card - A credit card will be provided to meet hospitality expenses incurred by the Lord Mayor in discharging his functionson behalf of Council.This expenditure will be capped at $7,200.00 per annum and any expenditure in excess of $7,200 will be deducted from the LordMayor's monthly fee payment/s.(Note: Per annum means the period from the second Saturday in September to the second Friday the following September).(v) Motor Vehicle Parking Space - A permanent parking space in the basement of the administration building.(vi) Staff - An executive assistant provides executive support on a full time basis, a personal assistant on a full time basis and use of adriver, attendant(s) and other staff on a casual basis as required.(vii) Stationery/Postage - Lord Mayoral stationery, business cards, Christmas cards, bereavement cards and postage for associatedmailing. All items of outgoing mail must be left at the administrative centre for collection by Australia Post.(viii) Refreshments - Food and beverage service associated in hosting meetings.(ix) Meals - Meals and beverage in conjunction with Council and committee meetings.(x) Insignia of Office - Provision of a jacket, badge and name plates, indicating the wearer holds the offi ces of councillor and LordMayor, worn at civic functions.(xi) Correspondence - Correspondence to individual residents or groups of residents should be directly related to issues concerningthat resident or group of residents. The correspondence should not refer to the Lord Mayor's political allegiance or non-allegianceto any political group, organisation or party. The Lord Mayor should be mindful, particularly in the lead up to elections, that materialshould not directly or indirectly seek to promote the electoral prospects of any individual or group.The content of mass correspondence (more than fi fty) with residents, which utilise Council resources, facilities or funds, should bereferred to the Chief Executive Offi cer or his delegate for perusal as to its compliance with the above policy, prior to distribution.(xii) Child Minding - Child minding during Council and committee meetings. The cost for the use of this service will be in accordancewith Council's annual fees and charges and will be deducted from the Lord Mayor's next monthly fee payment.In addition, child care expenses incurred by the Lord Mayor whilst attending the annual NSW Local Government Conference, duringconsideration of conference motions and conference dinner, will be reimbursed with the next monthly fee payment, subject tosubstantiation. All other child care expenses incurred at the conference are to be met by the Lord Mayor.(b) Deputy Lord Mayor and Councillors(i) Office - A furnished councillors' room is provided on the tenth fl oor of the administration building, shared by all Councillors.(ii) Communication Systems -• A mobile phone or Telstra Blackberry will be provided and a copy of the monthly mobile phone account will be provided to eachcouncillor for information.• A broadband internet connection will be provided (where available) through Council's service provider in each Councillor's home ornominated location. Use of the Internet will require compliance with Council's Computer Usage Policy.• Where broadband internet connection is not available, Council will provide a dial-up internet connection.Local Government Requirements219

Payment of Expenses and Provision of Facilities to Lord Mayor,Deputy Lord Mayor and Councillors (cont.)• A Council laptop computer will be provided in each councillor's home or nominated location. Maintenance and other servicing willbe provided through Council's IT Help Desk service. All maintenance will be a 'back to base' service.• A printer/fax will be provided, serviced and maintained in each councillor's home or nominated location and a copy of the monthlyaccount will be provided to each councillor for information.• Mobile phone/Blackberry and call expenditure via the Council provided home telephone line/s will be capped at a combinedexpenditure of $3,000 per annum. Any expenditure in excess of $3,000 will be deducted from the councillor's monthlyfee payment/s.(Note: Per annum means the period from the second Saturday in September to the second Friday the following September.)All home offi ce technology provision is to be returned to Council one working day prior to the local government elections.(iii) Parking Space - Each Council meeting, twelve car spaces be available for councillors from a time commencing two hours priorto the start of the meeting.During all other business hours four car spaces be available for councillors at any time in the garage area of the basement area of theCouncil car park, up to a maximum of seven.After hours, suffi cient car parking spaces be made available for attending councillors, when a Council minor committee or liaisoncommittee or special event is being held.(iv) Staff - Staff assistance as required for stenographic work in answering constituents' concerns and requests, driving vehicles,delivery of business papers and goods and catering for meetings.(v) Stationery/Postage - Councillor stationery, business cards, Christmas cards, and postage for associated mailing. All items ofoutgoing mail must be left at the administrative centre for collection by Australia Post.(vi) Correspondence - Correspondence to individual residents or groups of residents should be directly related to issues concerningthat resident or group of residents. Councillor's correspondence should not refer to the councillor's political allegiance ornon-allegiance to any political group, organisation or party.Councillors should be mindful, particularly in the lead up to elections, that material should not directly or indirectly seek to promotethe electoral prospects of any individual or group. The content of mass correspondence (more than fi fty) with residents, which utiliseCouncil resources, facilities or funds, should be referred to the Chief Executive Offi cer or his delegate for perusal as to its compliancewith the above policy, prior to distribution.(vii) Refreshments - Beverage service in the councillors' room.(viii) Meals - Meals and beverage in conjunction with Council and committee meetings.(ix) Insignia of Office - Provision of uniforms, badges and name plates, indicating the wearer holds the offi ce of councillor, worn atcivic functions.(x) Child Minding - Child minding during Council and committee meetings. The cost for the use of this service will be in accordancewith Council's annual fees and charges and will be deducted from the councillor's next monthly fee payment.In addition, child care expenses incurred by councillors whilst attending the annual NSW Local Government Conference, duringconsideration of conference motions and conference dinner, will be reimbursed with the next monthly fee payment, subject tosubstantiation. All other child care expenses incurred at the conference are to be met by the relevant councillors.3 Insurance CoverageCouncillors are to receive the benefi t of insurance coverage effected by Council for:Local Government Requirements(a) Travel and Personal Accident for Councillors and Persons Travelling with Councillors on Council Business WithinAustralia (Outside of 75km from Wollongong) and Worldwide (Subject to Policy Limitations)• Personal accident and capital benefi ts• Medical, evacuation and additional expenses (excluding medical expenses payable within Australia)• Evacuation cover (non-medical)• Baggage, travellers cheques, travel documents and credit cards, portable computers, display property and money• Loss of deposits and cancellation charges• Kidnap and ransom• Hire car excess expenses• Personal liability(b) Councillor's LiabilityLiability to a third party in the form of damages, compensation, interest and costs and defence costs arising from an error,misstatement, misleading statement, conduct, omission, neglect or breach of duty by a councillor.(c) Public LiabilityLiability to a third party arising out of councillors' exercise of their functions as councillors subject to any limitations or conditions of thepolicy of insurance effected by Council.220

Payment of Expenses and Provision of Facilities to Lord Mayor,Deputy Lord Mayor and Councillors (cont.)(d) Statutory LiabilityLiability for fi nes or penalties arising out of an inadvertent breach of the law by a councillor when exercising the functions of Council.4 Legal Services - in the event of -(i) An enquiry, investigation or hearing by any of -• the Independent Commission Against Corruption,• the Offi ce of the Ombudsman,• Department of Local Government and Cooperatives,• the Police,• the Director of Public Prosecutions, or• the Local Government Pecuniary Interest Tribunal into the conduct of a councillor; or(ii) Legal proceedings being taken against a councillor, arising out of or in connection with the councillor's exercise oftheir functions as a councillor, Council shall reimburse such councillor, after the conclusion of the enquiry, investigation,hearing or proceeding, for all legal expenses properly and reasonably incurred, given the nature of the enquiry,investigation, hearing or proceeding, on a solicitor/client basis, provided that -(a) the amount of such reimbursement shall be reduced by the amount of any monies that may be or are recouped by the councilloron any basis.(b) the councillors' exercise of their function, was in the opinion of Council bona fi de and/or proper; and as a councillor.(c) the amount of such reimbursement shall be limited to the extent that only fees charged at a rate equivalent to the hourly rate thenbeing charged by Council's solicitors will be paid, ie. any portion of the expenses representing any hourly charge rate higher than thehourly charge rate of Council's solicitors will not be reimbursed.5 Private BenefitFees payable to the Lord Mayor, Deputy Lord Mayor and councillors will not be reduced by any amount representing the privatebenefi t to them of a facility provided by Council but councillors are expected to reimburse Council for any such private use notassociated with civic duties and responsibilities. This is particularly appropriate for costs associated with the use of the Councilprovided mobile phone and fax/phone.6 ReimbursementCouncil will reimburse reasonable personal out of pocket expenses incurred by councillors in attending civic functions, seminars orconferences subject to substantiation including items such as parking fees, tolls, and lunches but excludes such things as tips.Local Government Requirements221

External Bodies with Delegated Functions by CouncilChief Financial OfficerBodyFunctionTourist Mine Reference Group To provide advice on -• The viability of the proposed mine at Elouera.• The availability of grant and private sector funding support for the project.• Investigating viable alternatives if required.City CentreBodyWollongong City Centre LimitedFunctionThe marketing of Crown Street Mall and Wollongong City Centre, including theemployment of staff where required and security services for Crown Street Mall.City StrategyBodyFunctionBicycle Planning Task Force To advise on -• The review of Council's Bicycle Plan for the City.• The prioritisation and allocation of funds for cycleway construction in the city fromsection 94 and the general fund.Central Wollongong Planning Reference Group To provide advice on -• Planning policies for the city centre through a sound consultation program that is foundedupon the interests and opinions of different sectors of the community.• The city centre to Wollongong as a whole becoming a more self contained employmentopportunity provider.• The achievement of high quality urban design outcomes.• A well structured and productive community engagement program for thecity centre strategy.Heritage Reference Group To provide advice on -• Applications for funding from owners of heritage items under the Local HeritageGrants Fund.• The support and promotion of heritage awareness at all levels of theWollongong community.• Any LEP amendments, DCPs and any major development applications which maypotentially impact on heritage requiring further advice.• Local, state and federal heritage legislation.• Promoting community education and awareness on heritage values in the city.• The listing of potential items of heritage signifi cance.Commercial Projects and PropertyBodyBerkeley Pioneer Cemetery Restoration GroupIntegral Energy Recreational ParkFunctionUndertake minor maintenance and works to the grounds and improvements of BerkeleyPioneer Cemetery also utilising private equipment and labour from the PeriodicalDetention Centre.Oversee the long term care, control and management of the Integral Energy RecreationPark at Darkes Road, Brownsville.Local Government Requirements222Communications and Public RelationsBodyAustralia Day CommitteeForté Marketing and DesignFunctionTo assist the Council to deliver a safe and enjoyable community event on Australia Daywithin available budget resources.Forté Marketing Committee ceased operation in February 2006 following a Councilrestructure, which saw Forté move to a focus on internal Council work, and that ofCouncil's affi liated organisations.

External Bodies with Delegated Functions by Council (cont.)Community and Cultural ServicesBodyFunctionAboriginal Reference Group To provide advice on -• Policies relating to indigenous issues.• Council's programs, services, functions and facilities to ensure access andappropriateness for the local indigenous community.• The implementation of the Aboriginal and Torres Strait Islander Statement ofCommitment/Reconciliation/Action Plan.• Support and promotion of appropriate celebrations with the broaderindigenous community.Access Reference Group To provide advice in order to –• Ensure services and facilities are accessible to all community members.• Promote awareness of Council's legislative responsibilities.Bulli Senior Citizens CentreTo occupy, manage, secure, caretake and maintain the premises on behalf of Council.Make the premises available for use by senior groups, community groups and otherscompatible with guidelines at mutually agreed times.Cultural Reference Group To provide advice on -• Inclusion of cultural projects in the corporate plan• Development of a cultural plan.• Future directions for events/festivals.Friends of Wollongong City GalleryFriends of the Wollongong City Gallery organise and conduct social functions, includingfundraising on the premises of the Wollongong City Gallery.Illawarra Performing Arts Centre LimitedTo occupy, manage, secure, caretake and maintain the Illawarra Performing Arts Centrepremises, including the employment of staff.Organise and conduct performances, social functions including fundraising on thepremises of the Illawarra Performing Arts Centre or elsewhere on behalf of the IllawarraPerforming Arts Centre.Multicultural Reference Group To provide advice on -• Inclusion of appropriate projects for Culturally and Lingustically Diverse (CALD)communities in the corporate plan.• Appropriate forums to liaise with CALD and refugee community representativesand/or agencies.Wollongong City Gallery Foundation LimitedUndertake fundraising for the Wollongong City Gallery, including organising andconducting social functions on the premises of the Wollongong City Galleryor elsewhere.Wollongong City Gallery LimitedOccupy, manage, secure, caretake and maintain the Wollongong City Gallery premises,including the employment of staff.Wollongong Safe Community Action TeamProvide a formalised structure for Council to consult with the community to makeWollongong a safer community.To develop and implement both long term and short term plans so that people will feelsafer in Wollongong.To identify and analyse the extent of crime and community concern about safetyin Wollongong.Wollongong Senior Citizens CentreTo occupy, manage, secure, caretake and maintain the premises on behalf of Council.Make the premises available for use by senior groups, community groups and othercompatible with guidelines at mutually agreed times.Wollongong Youth Centre Entertainment Committee Provide advice on events, type of event, taking a lead role in deciding which events arestaged (local vs touring).DesignBodyAllans Creek Floodplain Management CommitteeCollins/Whartons/Farrahers/Bellambi Gully/BellambiLake Creeks Floodplain Management CommitteeHewitts Creek Floodplain Management CommitteeMinnegang Creek Floodplain Management CommitteeMullet Creek Floodplain Management CommitteeTowradgi Creek Floodplain Management CommitteeFunctionUndertake data collection, information gathering and dissemination of information withinthe area of the catchment.Local Government Requirements223

External Bodies with Delegated Functions by Council (cont.)Economic DevelopmentBodyFunctionEconomic Development Reference Group To provide advice on -• Employment opportunities for the city.• Encouraging the establishment of new businesses within the city which will create longterm sustainable objectives for the city.• Providing support and assistance to existing businesses and organisations.Environment and HealthBodyEnvironment Fund Governance GroupEstuary Management Committee for Fairy, Towradgiand Hewitts CreeksFunctionTo oversee the distribution of Environment Fund money to priority environmentalprojects throughout the city.To provide advice on -• Monitoring and evaluation of plan implementation for the coastal lagoons on Fairy,Towradgi and Hewitts creeks in accordance with the NSW Government EstuaryManagement Process.• Identifying estuary issues which need to be addressed.• Assisting with the development of suitable strategies to address estuarymanagement issues.Library ServicesBodyFunctionFriends of the Wollongong City Library Incorporated • Organise and conduct social functions including fundraising on the premisesor elsewhere.Library Reference Group To provide advice on -• Library policies and strategic direction.• Options and implications of trends in Library services provision.• Emerging trends in library services provision.Local Government Requirements224Recreation and Natural ResourcesBodyAllen Park BushcareBald Hill BushcareBalgownie BushcareBellambi Dune BushcareBellambi Street BushcareBlue Divers BushcareBrickyard Point BushcareBudjong Creek LandcareByarong Creek BushcareCawley Street BushcareCharcoal Creek BushcareCliffhangers BushcareColedale Wombarra Scarborough LandcareConiston Heights BushcareCringila Community Park CommitteeDarkes Road BushcareEmperor Court BushcareFarmborough Waterfall BushcareFriends of Wollongong Botanic GardenFigtree Gardens BushcareGreenacre Road BushcareFunctionBushland regeneration.Seacliff restoration.Riparian restoration.Bushland regeneration.Bushland regeneration.Riparian restoration.Seacliff restoration.Riparian restoration.Riparian restoration.Bushland regeneration.Riparian restoration.Seacliff restoration.Seacliff restoration.Bushland regeneration.Revegetation.Bushland regeneration.Bushland regeneration.Bushland regeneration.Instruct visitors to the Wollongong Botanic Garden, annexes and outstations in thefeatures, rules and conditions applicable in consultation with the curator of thebotanic garden.Riparian restoration.Riparian restoration.

External Bodies with Delegated Functions by Council (cont.)Recreation and Natural Resources (cont.)BodyFunctionGreenhouse Park BushcareOld builders tip rehabilitation.Greenslopes Ave BushcareRiparian restoration.Keiraville Foothills BushcareBushland regeneration.Lower Charcoal Creek BushcareRiparian restoration.Mangerton Park BushcareBushland regeneration.Mid Charcoal Creek BushcareRiparian restoration.Mt Kembla BushcareBushland regeneration.Old Station Road BushcareBushland regeneration.Otford BushcareBushland regeneration.Outlook DriveBushland regeneration.Park Committees To provide advice on -• Managing all fi nancial operational and promotional activities required for competitionsand events.• Instructing participation in the environment program in the rules/conditions applicable toparticipating in the environment program.• Organising and conducting social functions including fundraising on the premises orelsewhere on behalf of Council.Puckey's Estate BushcareBushland regeneration.Railway Avenue BushcareBushland regeneration.Ranchby Reserve BushcareOpen space revegetation.Richardson Park BushcareRiparian restoration.Sandon Point BushcareSeacliff restoration.Slacky Creek BushcareRiparian restoration.Spearing Reserve BushcareRiparian restoration.Sports and Facilities Reference Group To provide advice on -• Sport and sports facility development for the city.• The formulation of policies on the use of Council's sporting facilities.• Priorities for the assessment, development and potential funding of sport and recreationfacilities and services utilising the Sports Planning process.Stanley Avenue BushcareRiparian restoration.Stanwell Park BushcareRiparian restoration.Surf Life Saving IllawarraAssist with Council approved environmental improvement activities, in compliance withthe procedures and charter outlined in the Surf Life Saving Service Agreement.Todd Park BushcareRiparian restoration.Tom Thumb Lagoon BushcareRiparian restoration.Towradgi Creek BushcareRiparian regeneration.Towradgi Dune BushcareDune restoration.Towradgi East BushcareRiparian restoration.Towradgi North Dune BushcareDune restoration.Upper Brooks Creek BushcareRiparian restoration.Wharton's Creek BushcareRiparian restoration.Whipbird Reserve BushcareBushland regeneration.Wilson Street BushcareSeacliff restoration.Wiseman Park BushcareBushland regeneration.Wollamai Point BushcareSeacliff restoration.Woodlands Park BushcareBushland regeneration.Technology and AdministrationBodyNeighbourhood Committees(10 - disbanded on 17 October 2005)FunctionNeighbourhood committees were disbanded on 17 October 2005.Local Government Requirements225

Overseas TravelAlex Darling - Lord MayorVisit to Yogyakarta at Invitation of Sultan in connectionwith Bluescope Youth Orchestra Recitals in Aid of ACEH VictimsYogyakarta,21 - 28 August 2005All costs paid byWollongong City ArtGalleryAlex Darling - Lord MayorNinth China International Fair for Investment and Trade and Meetingswith Provincial Offi cials and Business RepresentativesXiamen and Fuzhou, Fujian Province China6 - 15 September 2005Airfare $1,750.00Accommodation $4,156.00Expenses (Visa) $70.00Total cost: $5,951.00Kiril Jonovski - Deputy Lord MayorNinth China International Fair for Investment and Trade and Meetingswith Provincial Offi cials and Business RepresentativesXiamen and Fuzhou, Fujian Province China6 - 15 September 2005Airfare $6,610.00Accommodation $4,005.00Expenses $70.00Total cost: $10,685.00Bob Doyle - Economic Development ManagerNinth China International Fair for Investment and Trade andKuala Lumpur and Singapore MeetingsChina/Kuala Lumpur and Singapore6 - 15 September 2005Airfare $6,612.00Accommodation $5,219.00Total cost: $11,831.00Rod Oxley - CEOSOLGM ConferenceRotorua, New Zealand11 - 12 September 2005Registration paid by SOLGMAirfare paid by ICMARod Oxley - CEOICMA Conference and Board MeetingMinneapolis, USA22 - 28 September 2005Registration $829.00Airfare $9,664.00Accommodation $1,101.00Total cost: $11,594.00Zeki Esen - CouncillorInternational Solid Waste Association 2005 Congress and ExhibitionBueonos Aires, Argentina6 - 10 November 2005Registration $810.00Airfare $8,107.00Accommodation $1,536.00Expenses $119.00Total cost: $10,572.00Mike Hyde - Director City ServicesInternational Solid Waste Association 2005 Congress and ExhibitionBueonos Aires, Argentina6 - 10 November 2005Registration $810.00Airfare $10,556.00Accommodation $1,536.00Expenses $1,420.00Total cost: $14,322.00Rod Oxley - CEOICMA Board MeetingBoston, USA10 - 14 November 2005All costs met by ICMARod Oxley - CEOICMA Board MeetingOrlando, USA9 - 12 February 2006All costs met by ICMAEllen O’Brien - Sustainability Program ManagerInternational Council for Local Environmental InitiativesCapetown, South Africa24 February - 3 March 2006Registration $849.00Airfare $2,701.00Accommodation $1,425.00Expenses $111.00Total cost: $5,086.00Bob Doyle - Economic Development ManagerSkilled Migration Expo and IT Trade MissionBangkok/UK/Germany1 - 15 March 2006Airfare $8,665.00Accommodation $3,594.00Car Hire $54.00Expenses $2,113.00Total cost: $14,426.00Local Government Requirements226Rod Oxley - CEOWollongong City Council Insurance RenewalsDennis Williams - Assistant Manager Legal and RiskWollongong City Council Insurance RenewalsGreg Doyle - Assistant Manager Community DevelopmentCommunity and Cultural ServicesPlanning Research Conference 2006 Global Places, Local SpacesRod Oxley - CEOICMA Board MeetingBob Doyle - Economic Development ManagerFujian Technology and Projects FairLondon, United Kingdom1 - 8 April 2006London, United Kingdom1 - 8 April 2006London, United Kingdom5 - 7 April 2006Washington DC, USA8 - 13 June 2006Fuzhou, China17 - 20 June 2006Airfare $9,328.00Accommodation $2,004.00Expenses $918.00Total cost: $12,250.00Airfare $9,328.00Accommodation $2,147.00Total cost: $11,475.00Registration $500.00Airfare $9,600.00Total cost: $10,100.00All costs met by ICMAAirfare $6,237.00Accommodation $516.00Expenses (Visa) $353.00Total cost: $7,106.00

Ecologically Sustainable DevelopmentThe World Commission for Environment and Development was established by the United Nations in 1983. Itsprimary role was to propose long term strategies to achieve sustainable development. In 1987, the Commissionhanded down a report entitled: 'Our Common Future' which fi rst used the term sustainable development anddefi ned it as:'Development that meets the needs of the present without compromising the ability of future generations to meettheir own needs.'In 1992, the United Nations held the 'Rio Earth Summit' in Rio de Janeiro and from this conference came the termAgenda 21. Amongst other issues, Agenda 21 placed a strong emphasis on the responsibility of local governmentsto implement sustainability in their local areas. The summit logo: 'Think Globally, Act Locally' backed up thisemphasis and helped give birth to the local government focused Local Agenda 21 process.The Australian National Strategy for Ecologically Sustainable Development included ecology within the term anddefi ned it as:'Development that improves the total quality of life, both now and in the future, in a way that maintains theecological processes on which life depends.'Local Ethnic Affairs Policy Statement (LEAPS)The Ethnic Affairs Commission Act 1997 outlines three key result areas to assist Council to determine itsmulticultural strategies and activities. These three Key Result Areas (KRA) are:1 Social Justice2 Community Harmony3 Economic and Cultural Opportunities.Council's reponse to the Key Result Areas is indicated at the end of each LEAPS project by the acronym KRA andthe corresponding number.Community and Cultural Services• Wollongong City Council Interpreter Service. Service nominated for national local government 'Strength inDiversity Awards'. Service has received a commendation. The service will continue to develop a promotionalstrategy to raise its profi le both internally and externally. (KRA 1 and 3).• Development of Draft Multicultural Engagement Protocol: The purpose of protocol is to assist Council ineffectively engaging those communities whose culture is other than Australian Anglo and who speak littleor no English. Employing the protocols will demonstrate Council's genuine commitment to and respect forthe city's diversity. (KRA 1, 2 and 3)• Development of a Civic Orientation Map: A pilot project aimed at familiarising and educating new arrivals aboutAustralia's three tiers of government and at the same time improving access to some essential governmentservices. Publication translated into Arabic, Chinese and Croatian. To be launched in Refugee Week in October.(KRA 1, 2 and 3)• Harmony Day 2006 was celebrated in the City Mall in partnership with NSW Fire Bridge, NSW Rural Fire Bridge,Wollongong Police, Department of Education and Training, and the Illawarra Ethnic Communities Council Inc.(KRA 1, 2 and 3)• Continued commitment to refugee settlement and services. Council supported a visit by community refugeeleaders from Sydney in May. The aim of the visit, to raise awareness among refugee families of Wollongong asa welcoming place of settlement. Council supported the visit by subsidising a bus to transport the visitors andproviding a welcome address by the Lord Mayor. (KRA 1, 2 and 3)• To improve CALD access to Community Transport (identifi ed as a major issue for CALD communities) theCommunity Transport Brochure was further developed and translated into 16 CALD languages. (KRA 1 and 3)• Extensive consultations were undertaken with CALD groups and multicultural agencies in identifying CALDneeds/issues for the 2006-10 social plan. Groups engaged included Croatian Seniors Day Care, Filipino Group,Turkish Youth, Chinese Seniors Day Care and Energing Communities. Invitation also extended to key CALDstakeholders to a workshop to develop the CALD social plan strategies. (KRA 1, 2 and 3)• Continued commitment to CALD youth. Wollongong City Council supported and contributed $300 to the'Multicultural Youth Conference in Education Week' a joint project with IECC, IMS and DET. (KRA 1 and 3)Library• The Library service holds collections in several of the languages spoken in the Wollongong community, and is ableto borrow collections from the State Library of NSW 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)Local Government Requirements227

Local Ethnic Affairs Policy Statement (LEAPS) (cont.)Environment• A Portuguese group, an Italian Group and two Macedonian Groups participated in the Earthworks programwith an interpreter used when required. The Earthworks booklet information has been provided in the Chinese,Macedonian, Italian and Greek languages.• Residents who experienced diffi culties due to language barriers were visited by Council's Waste ManagementGreen Team and were shown the correct methods for disposal of waste by way of demonstration.• Council's Environment Fund-initiated Sustainability in the Workplace program partnered with the EthnicCommunities Council of NSW to deliver a water conservation project targeted towards Chinese-speakingrestaurants in the Wollongong LGA. The Saving Water in Asian Restaurants Project (SWARP) is facilitated bytwo bilingual environmental educators who will provide resources, training and support in both Cantoneseand Mandarin. These resources include an instructional DVD in three languages which promotes conversion oftraditional wok stoves to waterless woks, with the potential to save over 5,000 litres of water per wok per day.Commercial Projects and Property• Council has used ethnic radio stations and printed advertising materials in relation to Expression of Interest andProject data in a range of different languages in an attempt to reach as broad a cross section of the communityas possible.Communications and Public Relations• We commenced a media campaign through the local community radio station, VOX-FM, disseminating messagesabout key Council services and issues in community languages including Greek and Spanish. The campaignwas also run on a local Macedonian community station as a means of targeting the city’s largestmulticultural community.Access and EquityCommunity and Cultural Services• The Local Government Regulation 1999 requires that all councils include in their management plan a statementcontaining particulars of access and equity activities they propose to undertake during the period covered by themanagement plan.• Wollongong City Council's Social Community Plan 2002-03 to 2005-06 was prepared in accordance withthe Social Community Planning and Reporting Guidelines set out by the NSW Department of Local Government2002. The social plan describes the local community, summarises the key issues facing this community,and formulates recommended strategies which Council and other agencies could implement in order to addressidentifi ed needs. Seven mandatory target groups have been identifi ed which are:• Women• Children and Families• Young People• Aboriginal and Torres Strait Islander Population• People with Disability• People from Culturally and Linguistically Diverse (CALD) Backgrounds• Older PeopleLocal Government Requirements228In addition an extra category for men has been identifi ed.Preparation for Wollongong City Council's next social plan commenced in March 2004 and again in July 2005as part of Council's Social Data Research Project (SDRP). The SDRP involved comprehensive consultation of thecommunity, inclusive of the above mentioned target groups. Through these consultations, Council offi cerssurveyed or directly engaged with approximately 4,000 people. The information collected during these projectswill be used to inform the preparation of the next social plan which will be amended and presented to Council inlate 2006.A copy of the current social plan can be obtained by contacting the Social Planner, in Council's Community andCultural Services Division or via Council's website www.wollongong.nsw.gov.auDetails relating to access and equity activities identifi ed by the Social Plan are located in the sections of thecorporate plan that relate to Community Life and City Leadership.• Respite and Community Transport will focus on delivering their services effi ciently and effectively to meetthe client's needs, whilst recruiting and supporting volunteers. A new service will be introduced in respite with aWollongong Day Care being developed and investigating a possible service in Dapto in response to an identifi edneed. Support of carer's will continue to be a major focus of respite services. Community transport will beincreasing their options for clients with the development of a taxi subsidy and increase the ways that service canbest meet the needs of the indigenous and CALD community.

Access and Equity (cont.)• The year ahead will involve the integration of best practice place making and public art processes into city andprecinct planning as outlined in the cultural plan to enhance the lifestyle and environment of Wollongong. Work inthe museum sector will aim to protect and preserve our distinctive cultural heritage and environment. The aimwill be to promote cultural activities that facilitate cultural business development, enable skills development andeconomic growth through festivals, support networks, skills exchanges and local employment and encourageemerging artists and cultural businesses to contribute to the rich and diverse cultural life of Wollongong.Library• 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 tofacilitate access by the whole community.Environment and Health• Glengarry Cottage, Wollongong's Waste Education and Visitor Centre, provides interactive workshops for allmembers of the community, regardless of language, religion, age, physical or mental capacity. Glengarryprovides full wheelchair access, physical and virtual tours as well as a wide range of waste wise activitiesto ensure everyone can participate regardless of ability.Participants in 2006 included Fernhill Centre for Rehabilitation, Headway, Essential Personnel, Macedonianwelfare groups, a delegation of councillors from Thailand, Seniors Week participants, Illawarra MulticulturalVillage, Nowra YWCA, Albion Park Women’s Social Group, Italian Group, Northern Illawarra Ladies Probus Club,local schools, pre schools, high schools and tertiary groups.Commercial Projects and Property• Council has ensured that a range of its policies (particularly the Trading on footpaths) are compliant with theDisability Discrimination Act to ensure equity and access along the footpaths in the CBD. We have also writtento private land owners and provided a copy of our policy to encourage them to also incorporate those policieson their own premises.Works and Services• Council continues its aim to upgrade disabled access to Council's footpaths and other public facilitiesin accordance with Council's DDA. Works and Services continued its contribution to improving the physicalaccessibility of various Council infrastructure assets such as buildings, roads and footpaths. Achievementsfor the year to improve access for people with disability, older people and families with young childrenincluded the construction of 87 new kerb ramps, replacement or construction of 7.81km of footpath andthe improvements to access Council buildings.Recreation and Natural Resources• Equal Access Playground - Council has developed a tender specifi cation for the design of an equal accessplayground to be located in the city. A design consultant will be engaged during 2006-07 to work with variousstakeholders on the design features and determine a suitable location for the playground. Councillors haveendorsed funding for this project in the 2007-08 budget period.• Beach Accessible Wheelchair - Recreation and Natural Resources Division was presented with another beachaccessible wheelchair by the Disabled Surfers Association for use by appropriate beach users at Stanwell Parkbeach. The storage area is being modifi ed to accommodate this extra wide wheelchair and the chair will be fullyoperational by December 2006.Human Resources• 2005-06 has seen the commencement of refocusing EEO to refl ect Employment, Equity and Diversity (EED).A new EED management plan has been embraced by the organisation for the period 2006-09.Council is committed to the development and implementation of the EED management plan which formalises ourdirection and objectives in relation to EED, and highlights a set of principles designed to ensure that alldecisions made within Council are based on merit and sound management practices. The plan sets broadgoals for the organisation for a defi ned period which is refl ected by the identifi cation and inclusion of projectsas part of the business planning cycle. This will assist in making EED an integral part of the workplace culture andcentral to the everyday functioning of Council.Specifi cally through its EED management plan and policies, Council is seeking to create a working environmentthat is free of discrimination and is based on merit and equality of access to employment, promotions andlearning and development activities. By having a workforce that is more representative of the communitywe serve, Council can continue to improve its service provision through a better understanding of thecommunity’s needs.• 2004-05 showcased the development and implementation of the Aboriginal and Torres Strait IslanderEmployment Action Plan with a commitment to providing a range of training and employment relatedopportunities for individuals from minority groups. This plan is a key element of the EED management plan.Local Government Requirements229

GlossaryAASAustralian Accounting Standard.AIFRSAustralian equivalents to InternationalFinancial Reporting Standards.BenchmarkingTask of measuring the progress ofbusiness units through quantitative andqualitative comparisons with organisationsoffering a similar range of goods, servicesand facilities.Best PracticeA concept whereby a business ororganisation strives to perform at a higherlevel than any of its competitors withregard to the provision of goodsand services.Best ValueProvision of quality services in acompetitive environment to achieveservice levels demanded by customers.Billable HoursYearly production target after all leave,training and downtime is deducted fromthe total available working hours.BiodiversityThe variety of life in all its forms, levelsand combinations.Business UnitsWork units operating under the FACTSsystem of identifying full operationalcosts in order to market test againstcompetitors, ultimately improving serviceto the community.CALDCulturally and linguistically diverse.CatchmentArea of land that drains rainfall into a riveror lake.CCPCities for Climate Protection is a campaignof the International Council for LocalEnvironmental Initiatives (ICLEI). CCPoffers a framework for local governmentto develop a strategic agenda toreduce global warming and air pollutionemissions, with the benefi t of improvingcommunity liveability.CEOChief Executive Offi cer.Community EngagementRefers to all Council's business focusingon processes and practices that enablecommunities and individuals to participatein the development of communities andbuild capacity. It supports and informs allCouncil’s decision making processes.Corporate PlanA rolling management plan that setsdirection over a fi ve-year period andidentifi es objectives and performanceindicators for each corporate program.CouncillorsElected representatives who set strategicdirection, monitor organisationalperformances, liaise with stakeholders,and ensure operational compliance.DatabaseSystematic arrangement of computer datato enable it to be automatically retrievedand manipulated.DCPDevelopment Control Plan. Providespolicy statements and more detail beyondthe provisions contained in a LocalEnvironmental Plan and serves to furtherguide development decisions acrossthe city.DegradationRemoval of material through erosion.E-commerceBuying and selling goods throughthe Internet.EEOEqual Employment Opportunity.ESDEcological Sustainable Development.Development that improves the quality oflife, both now and in the future, in a waythat maintains the ecological processes onwhich life depends.Enterprise AgreementContract between employer andemployees on working conditionsand wages based on agreedperformance levels.FACTSFull Activity Costing To Services systemenabling the identifi cation of all costsassociated with a function or activity.FMISFinancial Management InformationSystem.GoalsEach program has an associated goal.The goal is a broad statement of what theprogram hopes to accomplish.GovernanceGovernance comprises the traditions,institutions and processes that determinehow power is exercised, how citizensare given a voice, and how decisions aremade on issues of public concern.IndigenousOriginating in a particular region orcountry, native to the area.InfrastructureRoads, buildings, bridges, pavements,cycleways and other constructions.Key Performance IndicatorsA set of indicators that assist in measuringoverall performance and refl ect the healthof the organisation.KMKilometre.LeachateWater carrying impurities that havepercolated through the earth, primarily atrubbish tips.LEPLocal Environment Plan. An environmentalplanning instrument that contains legallybinding provisions relating to development.MMillion.Market shareAn organisation's share of total industrysales in percentage terms.MissionOverall corporate philosophy thatarticulates how an organisation's visionwill be achieved.230

NAIDOCNational Aboriginal and Islander DayObservance Committee.Neighbourhood CommitteesCommittee comprised of communityrepresentatives who review issuespertaining to their specifi cneighbourhood areas.OH&SOccupational Health and Safety.OH&SIMOccupational Health and SafetyInjury Management.Perceptible RisksRisks that are large enough, great enoughor distinct enough to be noticed.Performance IndicatorMeasurable statistic identifying the extentof activity in meeting a specifi c objective.Place makingPlace making involves communitiesdeveloping strategic partnerships to createpublic art that celebrates local identity.ProgramsWollongong City Council's 2005-09Corporate Plan is structured around 10programs. Each program identifi es theachievement of key outcomes for thecommunity. Within each program are anumber of functions which outline theactivities and services that Council willundertake to achieve the program goal.ObjectivesAn objective is a specifi c, measurablecondition that must be attained in order toaccomplish a particular program goal.Quality ApproachA commitment to the principles of TotalQuality Management.Quarterly Corporate ReviewReview of progress in meeting corporateplan objectives and budget forecasts.RiparianSituated on the bank of a creek or bodyof water.Risk ManagementGood management which operates tominimise the incidence of injury, damage,or loss to persons or property and to thegood reputation of Council.ScopingDetailing the area to be covered by a givenactivity or subject.Sister CityA Sister City relationship is a formal linkbetween cities with a view to bringingsignifi cant economic, social andcultural benefi ts.StakeholderAny individual or group having a particularinterest in a project or action.State of the Environment ReportMechanism for providing details on thecurrent status of the main environmentalissues utilising the Pressure, State,Response model.SustainabilitySensitive use of natural resources withoutharming the ecological balance ofthe region.Sustainable DevelopmentEconomic development designed tomeet present needs whilst also takinginto account future costs. These includeenvironmental costs and the depletion ofnatural resources.SWERFAn innovative solid wastes to energyfacility previously located near WhytesGully now no longer operational.TBLThe framework for measuring andreporting corporate performance againsteconomic, social, andenvironmental parameters.ValuesUnderlying attitudes that infl uencedecision and actions to maximise anorganisation's performance.VisionStatement of direction that articulates theaspirations of Council and serves as aguide to all those who contribute tothe organisation.Glossary231

Local Government Act RequirementsLocal Government Requirements232Access and equity issues 228-229Access and services to people with diverselinguistic and cultural backgrounds 98, 101Application of additional rates increase 68-69Assets acquired by Council 163-164Assets held by Council 155, 181-182Audited fi nancial reports 142-194Balance Sheet 143Bushfi re reduction activities 62Category 1 business activities 196, 197, 199, 211Category 2 business activities 198, 199, 211Controlled entities 211Comparison of performance against objectives 34-129Competitive neutrality 211Competitive neutrality complaints 211Competitive neutrality pricing requirements 211Condition of public works 67, 208-209Contract awarded for amounts greater than $150,000 215Contributions under Section 356 (S356) 212Ecological Sustainable Development 3, 8, 13, 16, 17, 20, 28-29, 75-79, 227Employment, Equity and Diversity 125, 214Environmental activities 3, 8, 13, 16, 17, 20, 28-29, 75-79, 112-115Equal employment opportunities 125, 214External bodies with delegated functions 222-225Freedom of Information Act applications 212Human resource activities 124-127Income Statement 142Language Aid Program 98Local Ethnic Affairs Policy Statement (LEAPS) 227-228Mayoral and councillor fees and expenses 123, 218-221National Competition Policy 200, 211Overseas travel by councillors and staff 226Policy on the provision of facilities andpayment of expenses to Lord Mayor and councillors 218-221Privacy and personal information protection 214Revenue raised by Council 160-161Risk management activities 42-42, 117-118Services and programs for children 215-216Special rate variation 66, 67Statement of rates and charges written off 212Stormwater management services 214Summary of legal proceedings 213Senior management structure 31, 32-33Senior management remuneration packages 217Work carried out on private land 67The companion document -Wollongong City Council 2005-06State of the Environment Report -details the full range of environmentalinformation required under the LocalGovernment Act (1993). These includeland, water, air, biodiversity, waste,noise, Aboriginal heritage andnon-Aboriginal heritage issues, areasof environmental sensitivity, landscapeand vegetation, polluted areas, andthe restoration of natural areas.Copies of the Wollongong City Council2005-06 State of the EnvironmentReport can be obtained from theadministration building in BurelliStreet, Wollongong, or downloadedvia the internet.ProductionThe annual report was designed andproduced by WCC Marketing Unit.Printing by South Coast Graphics.The cover of this report isprinted on Media Satin, insidepages printed on 130gsmMedia Satin and 140gsmMultifi ne from CPI Papers.

WCC Markketing Unit © 29104.11.06

the city of wollongongNinth largest city in Australia.The name Wollongong originated from theaboriginal word Woolyungah meaning'Five Islands'.Renowned for its pristine beaches, stunningescarpment and coastline.Over 30 different languages are spokenhere, making Wollongong one of Australia'sforemost multicultural cities.Home to the University of Wollongong,Australia's University of the Year for 2000,2001 and 2002.Population is 192,402.Largely known for its history in heavy industry,such as coal and steel. Key growth industriesare tourism, education, information technologyand telecommunications.contactAddress: Wollongong City Council,41 Burelli Street, Wollongong, NSW 2500.Website: www.wollongong.nsw.gov.auEmail: council@wollongong.nsw.gov.auGeneral enquiries: 02 4227 7111(including emergency after hours assistance)