Budget Report 2020-2021 - Indigo Shire
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Budget Report 2020-2021
Contents Page
Mayors and CEO's Introduction 2
Budget Reports
1. Link to the Council Plan 3
2. Services and service performance indicators 5
3. Financial statements 15
4. Notes to the financial statements 20
4.5. Capital works program 28
5. Financial Performance Indicators 33
Schedule of fees and charges 34
Disclaimer
The information contained in this document is for general guidance only. It is not professional advice and should not be
used, relied upon or treated as a substitute for specific professional advice. Given the changing nature of laws, rules
and regulations, and the inherent hazards of electronic communication, there may be delays, omissions or
inaccuracies in information contained in this document.
The model budget, including financial statements, has been prepared in accordance with the requirements of the Local
Government Act 1989 and the Local Government (Planning and Reporting) Regulations 2014 . While every effort has
been made to ensure that the information contained in this document has been accurate and complies with relevant
Victorian legislation, each Council remains responsible to ensure that the budget they prepare is compliant with all
statutory requirements.
Indigo Shire Council - 2020/21
Budget Page 1 of 43Mayor and CEO’s Introduction
The development of the 2020/21 budget has been one of the most challenging in this council’s history. The 2020 summer
bushfires followed by the devastating COVID-19 pandemic has created a very difficult environment in which to prepare a 12-
month budget based on any real certainty.
However, our staff have worked extremely hard to deliver a balanced budget for 2020/21 and we thank the community for its
input during the exhibition of our draft budget.
In preparing this budget, we have had to take into account a number of assumptions around predicted loss of income and
offset this with savings in some areas, without impacting on service delivery.
This budget does ensure that we can continue to deliver the range and quality of services our community expects, from road
construction, maternal and child health services, libraries, town planning, actions to protect and enhance our environment,
providing leisure facilities, waste services and much more. It also details the funding that is required to deliver these services
and maintain important assets and infrastructure.
We recently received some very welcome state and Federal Government funding news, including $2.5M to build the Chiltern
Community Hub and $500,000 towards the Beechworth Precinct Renewal – Courthouse Kelly Trials Experience project, which
will be funded over a number of financial years. We've also received additional funding for roads and infrastructure projects,
and IT support.
As a small rural council, we rely heavily on grant funding, which is critically important at this time when so many are hurting as
a result of the fires and COVID-19.
We’ve set aside some additional funds to assist with business recovery. This will go towards initiatives to encourage visitors
back into our towns once it is safe to do so.
We are acutely aware that some businesses and residents will struggle to pay their rates in the new financial year and we
encourage these people to consider the measures outlined in our Fire and COVID-19 support package and also our hardship
policy.
This is a budget that will be constantly reviewed and adjusted accordingly throughout the next 12 months. We will continue to
keep our community informed and we ask for your understanding and patience as we all work through these unprecedented
times.
What we can be certain about, is a number of projects that are predominately externally funded, will continue in 2020/21 and
will play a vital role in our recovery. Work will continue on the $6.2M Beechworth to Yackandandah Rail Trail and the $2M
EPIC Mountain Bike Track.
Our Capital works program also includes $2.57M in road infrastructure improvements and $1.3M (some grant funding
pending) for parks, open space and recreational facilitates across the Shire.
In closing, we thank council staff for their efforts in developing this break-even budget and to our Councillors who have also
worked hard to ensure we can deliver a budget in these very trying and uncertain times.
Cr Jenny O’Connor Trevor Ierino
Mayor Chief Executive Officer
Indigo Shire Council - 2020/21 Budget Page 2 of 431. Link to the Council Plan
This section describes how the Annual Budget links to the achievement of the Council Plan within an overall
planning and reporting framework. This framework guides the Council in identifying community needs and
aspirations over the long term, medium term (Council Plan) and short term (Annual Budget) and then holding
itself accountable (Annual Report).
1.1 Legislative Planning and accountability framework
The Strategic Resource Plan, part of and prepared in conjunction with the Council Plan, is a rolling four-year
plan that outlines the financial and non-financial resources that Council requires to achieve the strategic
objectives described in the Council Plan. The Annual Budget is framed within the Strategic Resource Plan,
considering the services and initiatives which contribute to achieving the strategic objectives specified in the
Council Plan. The diagram below depicts the planning and accountability framework that applies to local
government in Victoria.
Source: Department of Environment, Land, Water and Planning
Feeding in to the above, Council has a long term plan which articulates a community vision, mission and
values. The Council Plan is prepared with reference to Council's long term Community Plan.
The timing of each component of the planning framework is critical to the successful achievement of the
planned outcomes.
1.1.2 Key planning considerations
Service level planning
Although councils have a legal obligation to provide some services— such as animal management, local roads,
food safety and statutory planning—most council services are not legally mandated, including some services
closely associated with councils, such as libraries, building permits and sporting facilities. Further, over time,
the needs and expectations of communities can change. Therefore councils need to have robust processes for
service planning and review to ensure all services continue to provide value for money and are in line with
community expectations. In doing so, councils should engage with communities to determine how to prioritise
resources and balance service provision against other responsibilities such as asset maintenance and capital
works.
Indigo Shire Council - 2020/21 Budget Page 3 of 431.2 Our purpose
Our vision
Indigo: Heritage Shire - Bold Future
Our mission
We will provide leadership good governance and engage with the community to grow the social,
economic and environmental viability and sustainability of Indigo Shire,
We will do this by:
* Supporting our people and
our* communities
Taking care of our places, townships and infrastructure.
* Helping grow our economy
Our values
* Community Involvement
* Leadership
* Honesty & integrity
* Respect
* Professionalism & teamwork
* Accountability
1.3 Strategic objectives
Strategic Theme Description
1. Indigo's People & Council will support the health and wellbeing of residents and provide
Communities infrastructure to meet their needs. A range of inclusive and accessible
services and programs will be delivered. There is a focus on supporting
young people, volunteers and community centres, and engaging with
indigenous groups. Council will utilise the intellectual capacity and talent that
exists in our community.
2. Indigo's Places, Townships Council will protect the Shire's heritage and indigenous assets and improve
& Infrastructure the quality and long-term sustainability of the built environment. Assets
critical to our economic prosperity will be maintained to a high standard
including our parks, gardens, open spaces and roads. The community will be
encouraged to participate in planning for the development of our major
townships.
3. Indigo's Economy Our local businesses and industries will be supported through the
development of an new Economic Development Strategy and new Tourism
Strategy. Tourism destinations will be promoted through appropriate visitor
information, both online and via a physical presence. Council will encourage
the development of light industrial estates and advocate for improved
telecommunications.
4 Indigo's Environment & Council will collaborate with the community to respond and adapt to climate
Sustainability change, reduce carbon emissions and attract investment for renewable
energy industries.
5 Civic Leadership & Council's business will be conducted openly and efficiently. Financial
Governance sustainability will be maintained. A positive customer service culture will be
enhanced and Council will foster improved community involvement in Council
decision-making.
Indigo Shire Council - 2020/21 Budget Page 4 of 432. Services and initiatives and service performance indicators
This section provides a description of the services and initiatives to be funded in the Budget for the 2020/21 year and how these will contribute to achieving the strategic
objectives outlined in the Council Plan. It also describes several initiatives and service performance outcome indicators for key areas of Council’s operations. Council is required
by legislation to identify major initiatives, initiatives and service performance outcome indicators in the Budget and report against them in their Annual Report to support
transparency and accountability. The relationship between these accountability requirements in the Council Plan, the Budget and the Annual Report is shown below
Source: Department of Environment, Land, Water and Planning
2.1 Strategic Theme 1: Indigo's People & Communities
Our strategic objectives in Theme 1 are to promote community members being physically and mentally healthy and active, equally
connected to services and to each other; engaging our young people; recognising and engaging with indigenous groups and growing
arts and culture across the Shire.
These objectives will be achieved by our focus on the services, initiatives, major initiatives and service performance indicators for
each of the business area as described below.
Services
2018/19 2019/20 2020/21
Actual Forecast Budget
Service area Description of services provided
$'000 $'000 $'000
Ageing Well The purpose of this service is for: Exp 84 95 100
Council to maintain an Ageing Well function to facilitate Rev 74 48 22
service planning and co-ordination, implement actions NET 10 47 78
from the Ageing Well Strategy, and advocate for enhanced
infrastructure and access for older people.
Carlyle Cemetery The purpose of this service is for: Exp 26 28 32
Manage all functions associated with cemetery services Rev 38 32 37
Strategically plan for and implement actions to meet needs of NET (12) (4) (5)
contemporary cemetery services
Perform all tasks in accordance with requirements of the
Cemeteries Act
Community Development The purpose of this service is to: Exp 659 497 685
strategically assess and facilitate planning and service delivery Rev 83 29 200
across the shire for all aged cohorts NET 576 468 485
plan and provide opportunities for the community activities
and to identify and respond to issues;
support the community to become more self-sufficient and
sustainable by giving them the tools and resilience to
investigate and address local issues; and
provide the community and community groups with
opportunities to be involved in art and cultural
activities, events and programs.
Early Years The purpose of this service is to: Exp 406 497 441
support groups and agencies to provide early years' Rev 319 259 284
services to the Indigo Shire community NET 87 238 157
provide Maternal and Child Health and immunisation
services to the Indigo Shire community
Environmental Health Services This service protects the community's health and wellbeing Exp 295 313 336
by coordinating food safety support programs to: Rev 265 322 335
manage and deliver Council's statutory duties under the NET 30 (9) 1
provisions of the Food Act 1984 (food safety), Public
Health and Wellbeing Health Act 2008, Environment
Protection Act 1970, Tobacco Act 1987 and other
associated Acts and Regulations through appropriate
policy development, planning and service delivery
Indigo Shire Council - 2020/21 Budget Page 5 of 432018/19 2019/20 2020/21
Actual Forecast Budget
Service area Description of services provided
$'000 $'000 $'000
Library Services This service provides public library services which: Exp 561 643 612
provides the community with four permanent libraries as Rev 202 162 142
Beechworth, Chiltern, Rutherglen and Yackandandah; NET 359 481 470
provides a variety of out-reach programs and services to
all other communities and towns;
provides access to the other collections available through
the Swift Consortium; and
meets informational, educational and recreational needs
of all members of the community.
Recreation The purpose of this service is to: Exp 605 585 655
plan for the future recreational needs of the community; and Rev 186 128 150
support the community in the provision of recreation facilities NET 419 457 505
and services, identification of funding opportunities,
preparation and submission of funding applications, working
with committees of management in the development of
master plans.
This service provides outdoor swimming pool facilities to
5 communities and provides the community with access to
aquatic facilities, services and programs.
Young People The purpose of this service is to provide and extend the range Exp 171 147 136
and quality of services available to young people aged Rev 109 103 88
between 12-25 years in the Indigo Shire by working with NET 62 44 48
Service providers, schools and community groups. In
particular;
FreeZa events
Iengage programs
L2P program
Major Initiatives
1) Continue to implement actions and projects from the Active Indio Strategy
2) Implement actions and projects from the new Library Strategy including the concept designs for the Chiltern Community Hub
3) Implement actions and projects from Ageing Well Strategy and Youth Strategy
Other Initiatives
4) Develop and finalise the Reconciliation Action Plan
5) Finalise the Ride It, Walk It Plan
6) Finalise the Lakes and Waterways Plan
Service Performance Outcome Indicators
2018/19 2019/20 2020/21
Service Indicator
Actual Forecast Budget
Library* Participation Active library members 18.99% Not Required Not Required
Maternal and Child Health Participation in the MCH service 90.46% Not Required Not Required
Maternal and Child Health Participation in MCH service by Aboriginal children 91.30% Not Required Not Required
Health and safety Critical and major non-compliance outcome
Food Safety 104.17% Not Required Not Required
notifications
Aquatic Facilities Utilisation of aquatic facilities 2.50 visits Not Required Not Required
* refer to table at end of section 2.5 for information on the calculation of Service Performance Outcome Indicators
2.2 Strategic Theme 2: Indigo's Places, Townships & Infrastructure
Our strategic objectives in Theme 2 are to encourage sustainable and well-planned townships and land management; have
an attractive and well-maintained built environment, streetscapes, openspaces and trees; expand and maintain our road
and path networks; and maintain and protect our cultural and heritage assets.
These objectives will be achieved by our focus on the services, initiatives, major initiatives and service performance indicators
for each business area as described below.
Services
2018/19 2019/20 2020/21
Service area Description of services provided Actual Forecast Budget
$'000 $'000 $'000
Asset Management The purpose of this service is to: Exp 248 250 278
provide asset management services for Council-owned Rev - - -
infrastructure (including roads, bridges, buildings, plant NET 248 250 278
and fleet, footpaths etc.);
review and manage Council's Road Management Plan; and
provide GIS and associated services, including mapping
and road and street numbering.
Indigo Shire Council - 2020/21 Budget Page 6 of 432018/19 2019/20 2020/21
Service area Description of services provided Actual Forecast Budget
$'000 $'000 $'000
Building Control Services The purpose of this service is to fulfill the obligations Exp 498 474 508
required by Local Councils within the Building Act (1993) and Rev 443 451 504
and the Building Regulations 2006: NET 55 23 4
by issuing building permits which promote safe and
sustainable development;
monitoring Places of Public Entertainment; and
inspecting, monitoring and controlling unsafe structures
after accidents or acts of nature.
Buildings and Property The purpose of this service is to: Exp 1,001 1,048 1,087
provide maintenance services to Council-owned and Rev 136 152 141
Council managed buildings, and NET 865 896 946
manage Council's property portfolio including leases, sales
and the management of arrangements with caravan park
operators at Beechworth, Chiltern, Rutherglen and
Yackandandah
manage the maintenance and upkeep, including cleaning of
public toilets.
Buller Gas The purpose of this service is to: Exp 2,440 2,153 1,952
manage the Buller Gas contract, which provides a Rev 3,053 2,765 2,398
reticulated LP gas service on Mount Buller which is sold NET (613) (612) (446)
to commercial and residential customers on Mt Buller.
facilitate bulk LPG deliveries to large tanks on site and
distribute throughout the village via a pipe reticulation system;
and
maintain the reticulated pipe network to the customer
including the meters, regulators and associated service
and pipe network.
Capital Works Management The purpose of this service is to: Exp 184 252 291
manage the delivery of the annual Capital Works program. Rev - - -
NET 184 252 291
Development Engineering The purpose of this service is to: Exp 132 123 117
provide engineering support to developers and community Rev 30 40 41
members looking to develop or subdivide land; NET 102 83 76
fulfill the role of Engineering referral authority for Indigo Shire
Council's Planning Scheme - providing conditions and ensuring
compliance with standards for planning permits; and
provide internal engineering and standards support for
Infrastructure Services staff.
Drainage The purpose of this service is to: Exp 34 42 40
investigate stormwater drainage issues; and Rev 7 5 5
maintain drainage infrastructure NET 27 37 35
Local Laws & animals The purpose of this service is to: Exp 281 266 290
provide a safe and orderly environment for residents, Rev 226 210 196
visitors and the public; and NET 55 56 94
to provide amenity and minimise risks to both the community
and to Council, as a business, alike.
To achieve this through the unit using both State
Legislation and Local Laws to guide the public, these Laws
have enforcement provisions that are applied when other
methods fail, the Legislation/Regulations/Local Laws used
include:
Local Laws 1,2,4 and 5;
Domestic Animal Act 1994 to support animal management
Prevention of Cruelty to Animals Act 1986;
Impounding of Livestock Act 1994;
Road Safety Act 1986;;
CFA Act 1958;
Summary Offences Act 1966; and
Graffiti Prevention Act 2007
Indigo Shire Council - 2020/21 Budget Page 7 of 432018/19 2019/20 2020/21
Service area Description of services provided Actual Forecast Budget
$'000 $'000 $'000
Non Indigo Shire council owned assets Exp 975 423 1,322
This area of the budget represents project work on infrastructure not
Rev 192 150 710
owned or managed by Council.
NET 783 273 612
Parks & Gardens The purpose of this service is to preserve and maintain all Exp 704 757 779
Council managed parks and gardens throughout the Shire. Rev 1 1 -
This includes: NET 703 756 779
Ongoing routine maintenance and operations of Councils
33 parks, gardens, sports ovals, arboretums and rural
reserve areas located throughout the Shire;
Inspection and maintenance of playgrounds; and
Cleaning and maintenance of BBQ's, shelters and park
furniture;
Town centre street gutter and footpath sweeping; and
Maintenance of wetland at Lake Anderson Chiltern and
Lake Sambell Beechworth.
Pathways The purpose of this service is to manage the maintenance of Exp 43 73 73
Council's urban footpaths and recreational shared paths to Rev - - -
ensure they are safe and serviceable for residents and NET 43 73 73
visitors of Indigo Shire
Planning The purpose of the statutory planning service is to: Exp 806 840 840
process all planning applications; Rev 260 271 266
act as the Planning Authority and responsible Authority NET 546 569 574
for the administration of the Indigo Planning Scheme as
required of Council by State Government; and
undertake the development and provision of land use policy
in keeping with the Municipal Strategic Statement and
Indigo Planning Scheme
Plant, Equipment & Fleet The purpose of this service is to ensure that: Exp 1,312 1,323 1,392
plant, equipment and fleet assets are suitable for Rev 62 58 54
Council's operational requirements; and NET 1,250 1,265 1,338
plant, equipment and fleet assets are well maintained,
safe and effective;
This area of the Budget includes the operating and
depreciation costs of all of Council's heavy and small plant,
fleet and equipment.
Quarries The purpose of this service is to: Exp 108 175 126
produce crushed rock suitable for use in maintaining Rev 91 86 86
Council's gravel road network; NET 17 89 40
maintenance of the Horseshoe Quarry property; and
Horseshoe Quarry is owned by Council and in addition to
using the crushed rock on its own roads, some material is
also sold to neighbouring LGA's at a market rate
Roads & Bridge Maintenance The purpose of this service is to: Exp 1,655 1,676 1,731
preserve and maintain Indigo Shire Council's roads and Rev 1,698 894 1,845
associated infrastructure including: NET (43) 782 (114)
sealed and unsealed road pavements;
bridges and major culverts;
bus shelters;
traffic signs and road furniture; and
street lighting.
inspect and respond to customer enquiries including after
hours call outs and emergency management operations; and
repair and replace traffic sign, guideposts and repaint line
marking of council managed roads and carparks.
Tree Services The purpose of this service is to: Exp 468 518 485
preserve and maintain Indigo Shire Council's many and Rev 64 14 -
significant street and park trees; and NET 404 504 485
plan for and implement a replacement planting program.
Indigo Shire Council - 2020/21 Budget Page 8 of 43Major Initiatives
1) Expand our seal road network in rural and urban areas
2) Progress the rail trail extension from Beechworth to Osbornes Flat
3) Progress the Beechworth to Yackandandah Epic Mountain bike trail
Other Initiatives
4) Progress projects emanating from the Indigo Planning Scheme Review
5) Continuation of the installation of water refill stations across the shire
6) Complete the annual gravel resheeting program
7) Complete the annual road resealing program
8) Continuation of the footpath extensions program
9) Continuation of the urban drainage improvements program
Service Performance Outcome Indicators
2018/19 2019/20 2020/21
Service Indicator
Actual Forecast Budget
Health and safety, Animal management prosecutions. ( Number of successful
Animal Management - Not Required Not Required
animal management prosecutions )
Statutory planning Decision making Council planning decisions upheld at VCAT 33% Not Required Not Required
Roads Satisfaction with sealed local roads. ( score out of 100) 60% Not Required Not Required
* refer to table at end of section 2.5 for information on the calculation of Service Performance Outcome Indicators
2.3 Strategic Theme 3: Indigo's Economy
Our strategic Objectives in Theme 3 are to ensure Indigo Shire has a growing local economy; and a thriving tourism industry.
These objectives will be achieved by our focus on the services, initiatives, major initiatives and service performance indicators for each
as described below.
Services
2018/19 2019/20 2020/21
Service area Description of services provided Actual Forecast Budget
$'000 $'000 $'000
Burke & Cultural Heritage The purpose of this service is to: Exp 702 803 751
collect, conserve and preserve the unique and nationally Rev 293 261 290
significant story of Beechworth and District; NET 409 542 461
display the collection for interpretation and education, to
make it accessible for researches and interested tourists
alike;
promote and support knowledge sharing amongst other
museums in the shire;
make accessible for research; academic historians,
genealogical researchers;
maintain the historic precinct and make it accessible to
visitors; and
to be a key driver for local tourism
Economic Development The economic development service assists the organisation to; Exp 183 242 341
identify areas/opportunities for growth; Rev 17 - -
strengthen small town retail precincts; NET 166 242 341
assess Council's impact on economic development
encourage and support agriculture and viticulture activity
and;
inform strategic Council purchasing
delivery place-making initiatives.
Completion of the Economic Development Strategy.
Indigo Shire Council - 2020/21 Budget Page 9 of 432018/19 2019/20 2020/21
Service area Description of services provided Actual Forecast Budget
$'000 $'000 $'000
Information Technology The purpose of this service is to: Exp 899 1,019 1,233
ensure all Council's Information Communications Technology Rev - - -
(ICT) systems and infrastructure is running efficiently and NET 899 1,019 1,233
effectively, fit for purpose in supporting Council staff in their
jobs now and moving forward with high availability and
uptime;
provide a high level of user support and training to staff and
Councillors; and
support Council's objectives as described in the Council
Plan via strategic implementation of ICT.
Tourism Development The purpose of this services is to: Exp 694 738 663
be responsible for the marketing and promotion of Indigo Rev 10 1 -
Shire's tourism destinations; NET 684 737 663
support the range of tourism festivals and events;
support the development of new and existing tourism
product;
assist industry development through skills workshops
and tools; and
increase the economic benefit to the community through
tourism.
Completion of the Tourism Strategy
Visitor Services The purpose of this service is to: Exp 613 668 612
operate Visitor Information Centres in Beechworth and Rev 45 53 42
Yackandandah, and support those in Chiltern and Rutherglen; NET 568 615 570
encourage economic growth through maximising visitor
spend;
deliver information, retail sales and accommodation/tour/ and
event bookings to visitors;
operate a customer service area open to the public
provide assistance to operators through mentoring and
workshops to grown their businesses and professional skills;
collate and provide inspiring informative communications
through digital, print and social mediums; and
support destination marketing campaigns
Major Initiatives
1) Complete the Beechworth Historic Precinct Masterplan
2) Develop and implement a Business Development program
3) Complete the Business Cases for the Chiltern Destination Playground and Rutherglen Wine Cycle Loop
2.4 Strategic Theme 4: Indigo's Environment & Sustainability
Our strategic objectives in Theme 4 are to support the reduction of carbon emissions and support climate change adaptation and mitigation
mitigation actions; support reduction in community consumption of non-renewable resources; ensure our emergency management is
effective; and protect native habit and biodiversity.
These objectives will be achieved by our focus on the services, initiatives, major initiatives and service performance indicators
for each business as described below.
Services
2018/19 2019/20 2020/21
Service area Description of services provided Actual Forecast Budget
$'000 $'000 $'000
Emergency Management The purpose of this service is to: Exp 157 631 101
plan for emergency events which may impact on our Rev 151 551 77
community; NET 6 80 24
assist in the response and recovery from emergency events;
maintain appropriate emergency management capabilities
Indigo Shire Council - 2020/21 Budget Page 10 of 432018/19 2019/20 2020/21
Service area Description of services provided Actual Forecast Budget
$'000 $'000 $'000
Environment & Sustainability The purpose of this service is to initiate and drive a range of Exp 307 531 350
environmental and sustainability programs to promote Rev 91 57 43
improved natural resource management and efficient resource NET 216 474 307
use within Council operations and the community.
Waste Management* The purpose of this service is to manage the provision of a Exp 2,622 3,180 2,730
range of waste and recycling services including: Rev 67 97 125
kerbside waste, recycling and organics collection NET 2,555 3,083 2,605
services to reduce waste to landfill;
an annual hard waste service;
the provision of public place waste/recycle disposal
facilities; and
support for festival and event waste/recycle disposal
facilities.
Waste Management Charges
A recent Ombudsman's review from a rate payer's enquiry lead to analysis of Indigo's waste management charges and practice.
The summary of the Ombudsman's findings are as follows:
The Ombudsman is satisfied that Indigo has been transparent in it's charging of its waste management charge, which includes the
Environmental Management Contribution (EMC). Indigo's budget and recorded minutes clearly itemises each component of the fees.
Indigo is not profiting from this fee.
The information provided by Indigo indicates it is charging only for the reasonable costs associated with the fee
Council is only using the funds for genuine EMC activities.
The Ombudsman is satisfied Indigo has administered section 162(b) consistently with the intent of the Local Government Act. It has
demonstrated that the funds associated with the EMC are contributing toward the reasonable costs of facilitating related services
and that it is not profiting from this fee.
Indigo Shire Council's financial result for the waste management service does vary from surplus to deficit from year to year depending
on the level of expenditure required in any one year. Over the past 12 years Council has a cumulative deficit in waste management
of approximately $1.093 million. The proposed 2020/21 budget predicts a slight surplus of $45.7k.
Based on the current understanding of the legislation and in the context of the Ombudsman's review, Indigo Shire Council believes that
the waste management charges have been legally raised, and that all of these funds have been appropriately used to deliver waste
management services to the community.
Council will continue to monitor this matter and would welcome any additional clarification that may be made by the State Government
to assist the Local Government sector in better understanding this section of the legislation.
Major Initiatives
1) Continue to implement initiatives to respond to the Climate Emergency
2) Implement a range of actions outlined in the Environment Strategy 2019 and the Resource Recovery & Waste Management
Strategy 2019-2024
Other Initiatives
3) Continue to support community renewable energy groups, including the community energy retailer
4) Community Facilities Energy Upgrade Grants program.
Service Performance Outcome Indicators
2018/19 2019/20 2020/21
Service Indicator
Actual Forecast Budget
Waste Collection Waste diversion Kerbside collection waste diverted from landfill 65.98% 62.95% Not required
* refer to table at end of section 2.5 for information on the calculation of Service Performance Outcome Indicators
2.5 Strategic Theme 5: Civic Leadership & Governance
Our strategic objectives in Theme 5 are to ensure Indigo Shire Council is financially sustainable; that Council provides good
governance and its business is open and transparent; that Council and its services are responsive and efficient; and that Council
forms effective partnerships and engages with the community to deliver outcomes.
Indigo Shire Council - 2020/21 Budget Page 11 of 43These objectives will be achieved by our focus on the services, initiatives, major initiatives and service performance indicators
for each business area as described below.
Services
2018/19 2019/20 2020/21
Service area Description of services provided Actual Forecast Budget
$'000 $'000 $'000
Communications The purpose of this service is to: Exp 295 289 313
keep the community, staff, councillors, stakeholders, other Rev 2 - -
agencies and the media informed about Council decisions; NET 293 289 313
initiatives and achievements;
provide strategic advice to council staff and Councillors on
communication and media-related issues;
support the delivery of a range of community engagement
activities
Manage social media and website platforms and contact
Customer Service & Administration The purpose of this service is to provide our residents and Exp 599 546 553
community with high quality and efficient customer service Rev - 220 55 -
delivery from our offices in Beechworth, Chiltern, Rutherglen NET 598 491 553
and Yackandandah.
Executive Management The purpose of this service is to: Exp 1,673 1,578 1,505
oversee and manage the day-to-day operations and affairs Rev 36 - -
of the council; NET 1,637 1,578 1,505
implement the decisions and policies of Council in a timely
manner;
advise and report to Council on any of the functions of
Council prescribed in the Local Government act 1989 (LGA);
monitor, manage and report to Council on Council's
performance and;
prepare plans, policies, strategies, budgets and procedures
for consideration by Council in accordance with the LGA
and other legislation.
Financial Services The purpose od this service is to: Exp 568 597 375
deliver all core accounting and finance functions; Rev 3,520 1,844 3,467
management and compliance of all finance related NET (2,952) (1,247) (3,092)
statutory, legal and taxation obligations; and
provide financial support to staff and Council.
This area of the Budget also receipts rates & charges
Governance This service has the responsibility to provide governance Exp 66 102 348
support to Council by: Rev 3 2 20
provision of good governance to the community including NET 63 100 328
making and implementing decisions with reference to
community engagement, policy frameworks and agreed
practice and in compliance with relevant legislation
key performance indicators, including the State
Government's recently introduced Local Government
Performance Reporting Framework;
oversight of Council's election process including the
production and compliance of voter rolls; and
support to Council, Councillors, staff and Council
committees in matters of governance.
People & Culture The purpose of this service is to: Exp 558 528 546
Oversee the full spectrum of employee / volunteer Rev 2 3 -
lifecycle events including attraction, recruitment, retention NET 556 525 546
training, performance management, professional
development and employee health and wellbeing.
Drive, influence and support cultural change across the
organisation;.
Support and coach line managers and supervisors in
supporting, engaging, developing and motivating their staff.
Provide for the health, safety and wellbeing of our
employees including continual monitoring and reporting of
Council's incidents, accidents and near misses including
investigations, corrective action, WorkCover management
and supporting employees to return to work safely.
Indigo Shire Council - 2020/21 Budget Page 12 of 432018/19 2019/20 2020/21
Service area Description of services provided Actual Forecast Budget
$'000 $'000 $'000
Rates & Property Services The purpose of this service is to: Exp 198 235 243
manage the forthcoming biannual property valuation process; Rev 165 66 74
prepare all property rating requirements for the shire NET 33 169 169
including calculations, rate notices, collections etc.;
manage debt collection for outstanding rates Debtors;
manage the Vote role updates for election years; and
preparation and adoption of Rating Strategy
Records Management The purpose of this service is to: Exp 132 142 152
administer and support Council's electronic records Rev - - -
management system (TRIM) including regular reviews NET 132 142 152
and strategies to increase the levels of staff usage and
effectiveness; and
Ensure document disposal and retention requirements
are in accordance with the Public Records Office of
Victoria.
Risk Management This service provides a range of governance, risk, insurance Exp 587 592 623
occupational health and safety, statutory and corporate Rev 2 11 2
support services. NET 585 581 621
Major Initiatives
1) Produce a new Council Plan 2021 - 2025
Other Initiatives
2) Pursue opportunities for shared services with other Councils in our region
Service Performance Outcome Indicators
2018/19 2019/20 2020/21
Service Indicator
Actual Forecast Budget
Governance Satisfaction with Council decisions (Community satisfaction rating out of 100 with
how Council has performed in making decisions in the interests of the community) 6.40% Not required Not required
* refer to table at end of section 2.5 for information on the calculation of Service Performance Outcome Indicators
Service Performance Outcome Indicators
Service Indicator Performance Measure Computation
Governance Satisfaction
Satisfaction with Council
decisions. (Community Community satisfaction rating
satisfaction rating out of out of 100 with how Council
100 with how Council has has performed in making
performed in making decisions in the interests of the
decisions in the interests community
of the community)
Statutory planning Decision making Council planning decisions [Number of VCAT decisions
upheld at VCAT. that did not set aside Council’s
(Percentage of planning decision in relation to a
application decisions planning application / Number
subject to review by VCAT of VCAT decisions in relation
and that were not set to planning applications] x100
aside)
Roads Satisfaction Satisfaction with sealed Community satisfaction rating
local roads. (Community out of 100 with how Council
satisfaction rating out of has performed on the
100 with how Council has condition of sealed local roads.
performed on the
condition of sealed local
roads)
Libraries Participation Active library members. [Number of active library
(Percentage of the members / municipal
municipal population that population] x100
are active library
members)
Waste collection Waste diversion Kerbside collection waste [Weight of recyclables and
diverted from landfill. green organics collected from
(Percentage of garbage, kerbside bins / Weight of
recyclables and green garbage, recyclables and
organics collected from green organics collected from
kerbside bins that is kerbside bins] x100
diverted from landfill)
Indigo Shire Council - 2020/21 Budget Page 13 of 43Service Indicator Performance Measure Computation
Aquatic Facilities Utilisation Utilisation of aquatic Number of visits to aquatic
facilities. (Number of visits facilities / Municipal population
to aquatic facilities per
head of municipal
population)
Animal Management Health and safety Animal management Number of successful animal
prosecutions. (Number of management prosecutions
successful animal
management
prosecutions)
Food safety Health and safety Critical and major non- [Number of critical non-
compliance notifications. compliance notifications and
(Percentage of critical and major non-compliance
major non-compliance notifications about a food
notifications that are premises followed up /
followed up by Council) Number of critical non-
compliance notifications and
major non-compliance
notifications about food
premises] x100
Maternal and Child Health Participation Participation in the MCH [Number of children who
service. (Percentage of attend the MCH service at
children enrolled who least once (in the year) /
participate in the MCH Number of children enrolled in
service) the MCH service] x100
(Percentage of children
Participation in MCH [Number of Aboriginal children
service by Aboriginal who attend the MCH service at
children. (Percentage of least once (in the year) /
Aboriginal children Number of Aboriginal children
enrolled who participate in enrolled in the MCH service]
the MCH service) x100
2.3 Reconciliation with budgeted operating result
Net Cost
Expenditure Revenue
(Revenue)
$’000 $’000 $’000
Indigo's People & Communities 1,745 2,965 (1,220)
Indigo's Places, Townships & Infrastructure 5,061 11,345 (6,284)
Indigo's Economy 3,268 3,586 (318)
Indigo's Environment & Sustainability 2,936 3,181 (245)
Civic Leadership & Governance 1,094 4,657 (3,564)
Total 14,104 25,734 (11,630)
Expenses added in:
Depreciation 5,429
Finance costs 86
Others
Deficit before funding sources 19,619
Funding sources added in:
Rates and charges revenue (14,495)
Waste charge revenue (3,136)
Total funding sources (17,631)
Operating (surplus)/deficit for the year 1,987
Indigo Shire Council - 2020/21 Budget Page 14 of 433. Financial Statements
This section presents information in regard to the Financial Statements and Statement of Human Resources. The budget
information for the year 2020/21 has been supplemented with projections to 2028/29 included in the Strategic Resource Plan.
This section includes the following financial statements prepared in accordance with the Local Government Act 1989 and the
Local Government (Planning and Reporting) regulations 2014 .
Comprehensive Income Statement
Balance Sheet
Statement of Changes in Equity
Statement of Cash Flows
Statement of Capital Works
Statement of Human Resources
Pending Accounting Standards
The 2020-21 budget has been prepared based on the accounting standards applicable at the date of preparation. This
means that pending accounting standards that will be in effect from the 2020-21 financial year have not been considered in
the development of the budget.
Standards that are likely to impact on the 2020-21 financial statements, not considered in the preparation of the budget
include:
• AASB 16 Leases
• AASB 15 Revenue from Contracts with Customers , and
• AASB 1058 Income of Not for Profit Entities .
While it is not possible to determine the precise impact of these standards at this time, the broad impact on Council is
estimated to be as follows:
• AASB 16 Leases – Introduces a single lessee accounting model whereby the Council will be required to recognise a right of
use asset and associated liability for leases longer than 12 months, except those considered to be of low value.
• AASB 15 Revenue from Contracts with Customers and AASB 1058 Income of Not for Profit Entities – Change the way that
Councils recognise income and also address matters such as grant funding, contribution of assets and volunteer services. A
key change is replacement for some transactions of the criteria of control as a determinant of the timing of income
recognition, with the criteria of satisfying performance obligations in an enforceable agreement. These new standards have
the potential to impact the timing of how the Council recognises income.
Comprehensive Income Statement
For the year ending 30 June 2021
Forecast
Budget
Actual
2019/20 2020/21
NOTES $’000 $’000
Income
Rates and charges 4.1.1 17,002 17,631
Statutory fees and fines 4.1.2 1,033 1,060
User fees 4.1.3 3,299 2,930
Grants - Operating 4.1.4 3,742 6,597
Grants - Capital 4.1.4 4,859 6,416
Contributions - monetary 4.1.5 217 990
Contributions - non-monetary 4.1.5 0 0
Net gain/(loss) on disposal of property, infrastructure, plant and equipment 110 303
Other income 4.1.6 968 911
Total income 31,231 36,837
Expenses
Employee costs 4.1.7 11,413 11,677
Materials and services 4.1.8 11,005 11,269
Depreciation and amortisation 4.1.9 5,943 5,902
Bad and doubtful debts 0 0
Borrowing costs 103 86
Other expenses 4.1.10 2,152 2,330
Total expenses 30,617 31,264
Surplus/(deficit) for the year 614 5,573
Other comprehensive income
Items that will not be reclassified to surplus or deficit in future periods
Net asset revaluation increment /(decrement) 2,394 2,440
Total comprehensive result 3,008 8,013
Indigo Shire Council - 2020/21 Budget Page 15 of 43Balance Sheet
For the year ending 30 June 2021
Forecast
Budget
Actual
2019/20 2020/21
NOTES $’000 $’000
Assets
Current assets
Cash and cash equivalents 6,708 5,687
Trade and other receivables 2,361 2,361
Other financial assets 7 7
Inventories 306 306
Non-current assets classified as held for sale 0 0
Other assets 865 865
Total current assets 4.2.1 10,247 9,227
Non-current assets
Trade and other receivables
Other financial assets
Investments in associates, joint arrangement and subsidiaries
Property, infrastructure, plant & equipment 293,694 298,554
Investment property
Intangible assets
Total non-current assets 4.2.1 293,694 298,554
Total assets 303,941 307,780
Liabilities
Current liabilities
Trade and other payables 3,434 3,434
Trust funds and deposits 150 150
Provisions 2,985 2,985
Interest-bearing liabilities 4.2.3 554 545
Total current liabilities 4.2.2 7,123 7,114
Non-current liabilities
Provisions 4,698 4,698
Interest-bearing liabilities 4.2.3 1,308 1,263
Other Non-current liabilities 51 51
Total non-current liabilities 4.2.2 6,057 6,012
Total liabilities 13,180 13,126
Net assets 290,761 294,654
Equity
Accumulated surplus 163,138 164,541
Reserves 127,623 130,113
Total equity 290,761 294,654
Statement of Changes in Equity
For the year ending 30 June 2021
Accumulated Revaluation Other
Total
Surplus Reserve Reserves
NOTES $’000 $’000 $’000 $’000
2020 Forecast Actual
Balance at beginning of the financial year 287,753 162,574 124,680 499
Surplus/(deficit) for the year 614 614 - -
Net asset revaluation increment/(decrement) 2,394 - 2,394 -
Transfers to other reserves 0 (50) - 50
Transfers from other reserves 0 - - -
Balance at end of the financial year 290,761 163,138 127,074 549
2021 Budget
Balance at beginning of the financial year 290,761 163,138 127,074 549
Surplus/(deficit) for the year 1,453 1,453 - -
Net asset revaluation increment/(decrement) 2,440 - 2,440 -
Transfers to other reserves 4.3.1 0 (50) - 50
Transfers from other reserves 4.3.1 0 - - -
Balance at end of the financial year 4.3.2 294,654 164,541 129,514 599
Indigo Shire Council - 2020/21 Budget Page 16 of 43Statement of Cash Flows
For the year ending 30 June 2021
Forecast
Budget
Actual
2019/20 2020/21
Notes $’000 $’000
Inflows Inflows
(Outflows) (Outflows)
Cash flows from operating activities
Rates and charges 17,002 17,631
Statutory fees and fines 1,033 1,060
User fees 3,299 2,930
Grants - operating 3,742 6,597
Grants - capital 4,859 6,416
Contributions - monetary 217 990
Interest received 231 177
Dividends received 0 0
Trust funds and deposits taken 0 0
Other receipts 737 734
Net GST refund / payment 0 0
Employee costs (11,413) (11,677)
Materials and services (11,005) (11,269)
Trust funds and deposits repaid 0 0
Other payments (2,042) (2,237)
Net cash provided by/(used in) operating activities 4.4.1 6,660 11,352
Cash flows from investing activities
Payments for property, infrastructure, plant and equipment (9,977) (12,545)
Proceeds from sale of property, infrastructure, plant and equipment 110 303
Payments for investments 0 0
Proceeds from sale of investments 0 0
Loan and advances made 0 0
Payments of loans and advances 10 10
Net cash provided by/ (used in) investing activities 4.4.2 (9,856) (12,233)
Cash flows from financing activities
Finance costs (103) (86)
Proceeds from borrowings 0 500
Repayment of borrowings (581) (554)
Net cash provided by/(used in) financing activities 4.4.3 (684) (140)
Net increase/(decrease) in cash & cash equivalents (3,881) (1,020)
Cash and cash equivalents at the beginning of the financial year 10,588 6,708
Cash and cash equivalents at the end of the financial year 6,708 5,687
Indigo Shire Council - 2020/21 Budget Page 17 of 43Statement of Capital Works
For the year ending 30 June 2021
Forecast
Budget
Actual
2019/20 2020/21
NOTES $’000 $’000
Property
Land 10 245
Land improvements 0 0
Total land 10 245
Buildings 768 1,289
Heritage buildings 693 555
Building improvements 0 0
Leasehold improvements 0 0
Total buildings 1,461 1,844
Total property 1,471 2,089
Plant and equipment
Heritage plant and equipment 0 0
Plant, machinery and equipment 884 850
Fixtures, fittings and furniture 75 90
Computers and telecommunications 489 555
Library books 72 65
Total plant and equipment 1,519 1,560
Infrastructure
Roads 2,831 2,760
Bridges 1,215 120
Footpaths and cycleways 2,225 4,144
Drainage 186 541
Recreational, leisure and community facilities 398 129
Waste management 0 0
Parks, open space and streetscapes 131 1,203
Aerodromes 0 0
Off street car parks 0 0
Other infrastructure 0 0
Total infrastructure 6,986 8,897
Total capital works expenditure 4.5.1 9,977 12,545
Represented by:
New asset expenditure 2,174 5,929
Asset renewal expenditure 5,333 4,497
Asset expansion expenditure 0 0
Asset upgrade expenditure 2,470 2,119
Total capital works expenditure 4.5.1 9,977 12,545
Funding sources represented by:
Grants 4,859 6,416
Contributions 195 1,145
Council cash 4,923 4,485
Borrowings 0 500
Total capital works expenditure 4.5.1 9,977 12,545
Indigo Shire Council - 2020/21 Budget Page 18 of 43Statement of Human Resources
For the year ending 30 June 2021
Forecast
Budget
Actual
2019/20 2020/21
$’000 $’000
Staff expenditure
Employee costs - operating 11,413 11,677
Employee costs - capital 1,003 1,105
Total staff expenditure 12,416 12,782
FTE FTE
Staff numbers
Employees 132.83 132.98
Total staff numbers 132.83 132.98
A summary of human resources expenditure categorised according to the organisational structure of Council is included
below:
Comprises
Budget Permanent
Department
2020/21 Full Time
$'000 $'000
Community & Economic Development Services 2,884 1,892
Infrastructure Services 3,898 3,425
Office of the CEO 2,053 1,548
Planning & Corporate Services 2,176 1,665
Total permanent staff expenditure 11,011 8,529
Casuals, temporary and other expenditure 666
Capitalised labour costs 1,105
Total expenditure 12,782
A summary of the number of full time equivalent (FTE) Council staff in relation
to the above expenditure is included below:
Comprises
Department Budget Permanent
2020/21 Full Time
Community & Economic Development Services 33.54 22.00
Infrastructure Services 42.45 37.30
Office of the CEO 15.92 12.00
Planning & Corporate Services 22.21 17.00
Total permanent staff expenditure 114.12 88.30
Casuals, temporary and other expenditure 7.62
Capitalised labour costs 11.24
Total staff 132.98
Indigo Shire Council - 2020/21 Budget Page 19 of 434. Notes to the financial statements
This section presents detailed information on material components of the financial statements. Council needs to assess which components
are material, considering the dollar amounts and nature of these components.
4.1 Comprehensive Income Statement
4.1.1 Rates and charges
Rates and charges are required by the Act and the Regulations to be disclosed in Council’s annual budget.
In developing the Strategic Resource Plan, rates and charges were identified as an important source of revenue. Planning for future rate
increases has therefore been an important component of the Strategic Resource Planning process. Rate capping sets out the maximum
amount councils may increase rates in a year. For 2020/21, the rate cap has been set at 2%. The cap applies to both general rates and
municipal charges and is calculated on the basis of council’s average rates and charges.
The level of required rates and charges has been considered in this context, with reference to Council's other sources of income and the
planned expenditure on services and works to be undertaken for the community.
To achieve these objectives while maintaining service levels and a strong capital expenditure program, the average general rate and the
municipal charge will increase by 2% in line with the rate cap.
This will raise total rates and charges for 2020/21 to $ 17,531,208.
4.1.1(a) The reconciliation of the total rates and charges to the Comprehensive Income Statement is as follows:
2019/20
2020/21
Forecast
Budget Change
Actual
$’000 $’000 $’000 %
General rates* 11,363 11,795 432 3.80%
Municipal charge* 2,608 2,699 91 3.49%
Waste management charge 3,030 3,136 106 3.50%
Total rates and charges 17,002 17,631 629 3.70%
*These items are subject to the rate cap
4.1.1(b) The rate in the dollar to be levied as general rates under section 158 of the Act for each type or class of
land compared with the previous financial year
2019/20 2020/21
Type or class of land Change
cents/$CIV cents/$CIV
General rate for rateable residential properties 0.003266 0.003200 (2.02%)
General rate for rateable residential vacant properties 0.006532 0.006401 (2.01%)
General rate for rateable rural 1 properties 0.002449 0.002400 (2.00%)
General rate for rateable rural 2 properties 0.002939 0.002880 (2.01%)
General rate for rateable commercial/industrial properties 0.004409 0.004321 (2.00%)
4.1.1(c) The estimated total amount to be raised by general rates in relation to each type or class of land, and the estimated total amount
to be raised by general rates, compared with the previous financial year
2019/20 2020/21 Change
Type or class of land
$’000 $’000 $’000 %
General 6,464 6,658 194 2.99%
Residential Vacant 485 495 10 2.04%
Rural 1 2,430 2,514 84 3.44%
Rural 2 1,137 1,159 22 1.95%
Commercial / Industrial 847 870 23 2.73%
Total amount to be raised by general rates 11,363 11,695 332 2.92%
4.1.1(d) The number of assessments in relation to each type or class of land, and the total number of assessments, compared with the
previous financial year
2019/20 2020/21 Change
Type or class of land
Number Number Number %
General 5,728 5,843 115 2.01%
Residential Vacant 469 431 (38) -8.10%
Rural 1 1,420 1,427 7 0.49%
Rural 2 852 857 5 0.59%
Commercial / Industrial 389 394 5 1.29%
Total number of assessments 8,858 8,952 94 1.06%
Indigo Shire Council - 2020/21 Budget Page 20 of 434.1.1(e) The basis of valuation to be used is the Capital Improved Value (CIV)
4.1.1(f) The estimated total value of each type or class of land, and the estimated total value of land, compared with the previous financial
year
2019/20 2020/21 Change
Type or class of land
$’000 $’000 $’000 %
General 1,956,151 2,080,171 124,020 6.34%
Residential Vacant 77,555 77,318 (237) -0.31%
Rural 1 990,029 1,047,139 57,110 5.77%
Rural 2 381,812 402,436 20,624 5.40%
Commercial / Industrial 188,103 201,388 13,284 7.06%
Total value of land 3,593,650 3,808,452 214,802 5.98%
4.1.1(g) The municipal charge under Section 159 of the Act compared with the previous financial year
Per Rateable Per Rateable
Property Property Change
Type of Charge
2019/20 2020/21
$ $ $ %
Municipal 312.60 318.85 6.25 2.00%
4.1.1(h) The estimated total amount to be raised by municipal charges compared with the previous financial year
2019/20 2020/21 Change
Type of Charge
$ $ $ %
Municipal 2,608,362 2,699,401 91,039 3.49%
4.1.1(i) The rate or unit amount to be levied for each type of service rate or charge under Section 162 of the Act compared with the
previous financial year
Per Rateable Per Rateable
Property Property Change
Type of Charge
2019/20 2020/21
$ $ $ %
Domestic Garbage Collection (Urban) 111.80 114.05 2.25 2.01%
Domestic Garbage Collection (Rural) 188.15 191.90 3.75 1.99%
Recycling Collection 85.85 87.55 1.70 1.98%
Organic Collection 157.95 161.10 3.15 1.99%
Environmental Management Contribution* 74.60 76.10 1.50 2.01%
Total 618.35 630.70 12.35 2.00%
* Previously "Waste Management Facility Levy"
4.1.1(j) The estimated total amount to be raised by each type of service rate or charge, and the estimated total amount to be raised by
service rates and charges, compared with the previous financial year
2019/20 2020/21 Change
Type of Charge
$’000 $’000 $ %
Domestic Garbage Collection (Urban) 594 613 19 3.22%
Domestic Garbage Collection (Rural) 380 392 12 3.24%
Recycling Collection 619 640 21 3.34%
Organic Collection (Introduced) 815 847 32 3.93%
Environmental Management Contribution* 622 644 22 3.50%
Total 3,030 3,136 106 3.50%
* Previously "Waste Management Facility Levy"
4.1.1(k) The estimated total amount to be raised by all rates and charges compared with the previous financial year
2019/20 2020/21 Change
$’000 $’000 $’000 %
Rates & Charges 16,873 17,631 758 4.49%
Total Rates and charges 16,873 17,631 758 4.49%
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