CORPORATE PLAN 2019/20 2021/2022 - ALPINE RESORTS CO-ORDINATING COUNCIL - Alpine Resorts ...
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ALPINE RESORTS CO-ORDINATING COUNCIL CORPORATE PLAN 2019/20 - 2021/2022
Approved for publication on 18 November 2019 by the Minister for Energy, Environment and Climate Change. Published by the Alpine Resorts Co-ordinating Council 8 Nicholson St East Melbourne Victoria 3002 ISSN 2203-983X (Online) © The State of Victoria, Alpine Resorts Co-ordinating Council 2019 This work is licensed under a Creative Commons Attribution 3.0 Australia licence. You are free to re-use the work under that licence, on the condition that you credit the State of Victoria as author. The licence does not apply to any images, photographs or branding, including the Victorian Government logo and the Alpine Resorts Co-ordinating Council logo. To view a copy of this licence, visit http://creativecommons.org/licenses/ by/3.0/au/deed.en A PDF copy of this document is available on www.arcc.vic.gov.au. For further information on this publication contact the Alpine Resorts Co-ordinating Council on (03) 9637 9642. Disclaimer This publication may be of assistance to you but the State of Victoria and the Alpine Resorts Co-ordinating Council and their employees do not guarantee that the publication is without flaw of any kind or is wholly appropriate for your particular purposes and therefore disclaims all liability for any error, loss or other consequence which may arise from you relying on any information in this publication. Acknowledgements Photo Credit: Tony Harrington, Mount Buller
Alpine Resorts Co-ordinating Council
Corporate Plan 2019/20 – 2021/22
Executive Summary
The Alpine Resorts Co-ordinating Council (Council) addresses key issues relating to the alpine resorts,
including strategic positioning and advocacy, co-operation and research on behalf of the Minister for
Energy, Environment and Climate Change (the Minister).
The Council’s Corporate Plan 2019/20 – 2021/22 details how the Council will undertake its statutory
functions in a manner that continues to support achieving the vision of the legacy Alpine Resorts
Strategic Plan 2012 (2012 Plan), namely:
Victoria’s Alpine Resorts will be vibrant,
growing and sustainable places, delivering
alpine recreational and tourism experiences
that are available to all.
Council’s previous corporate plans were guided by this vision and the key actions contained in the 2012
Plan. Until a new industry strategic plan is adopted, it is felt appropriate to retain this agreed vision as
an overall guide to developing Council’s Corporate Plan 2019/20 – 2021/22.
The Council will continue to oversee and implement the on-going actions previously contained within
the 2012 Plan whilst it finalises and then implements the new industry strategic plan. Over the course of
2019/20 and in addition to undertaking its statutory obligations, the Council will also finalise projects
and oversee the implementation of the Ministerial Directions issued in 2018 and any further Ministerial
Directions and actions associated the new Strategic Plan, to be known as the “Alpine Resorts Strategic
plan 2019 – responding to a changing climate” once finalised. Specifically, it will:
Revise the ARMB Master Plan Framework to reflect priorities of the new strategic plan;
Monitor and report on the implementation of the new strategic plan;
Broadening the collaborative approach for key projects using existing Tourism Destination Action
Plans and Regional Partnership resources;
Establish a cross government taskforce as part of the implementation of the new strategic plan to
investigate viability of the green season to support resorts in the longer-term;
Lead the development of climate adaptation planning for the alpine sector;
Monitor the sector’s adaptation to the impacts of climate change;
Implement revised VARDP policy referencing the Climate Change Act 2017;
Support ARMBs to develop corporate plans that align with and support the delivery of the Alpine
Resorts Strategic Plan and work with DELWP to review draft corporate plans to identify where
amendments may be necessary;
Monitor and report on the implementation of the recommendations of the ‘Business Systems and
Services Review of Victoria’s Northern Resorts’;
Monitor implementation and report on the ‘Stakeholder Engagement Plan’s’ ‘Improvement/Action
Plan’;
Develop a framework with Traditional Owners to facilitate on-going engagement, the development
of partnership plans and understanding of connection to country in alpine areas;
Co-ordinate the staging of an Industry Conference to reflect contemporary industry needs and
outcomes of the 2019 Plan;
Consider the likely impact of Vail Resorts entering the Victorian market;
Undertake a review of the 2002 Alpine Resorts Leasing Policy on behalf of DELWP; and,
Investigate the benefits of undertaking an alpine resort ‘carrying capacity’ study in conjunction with
the NSW Office of Environment and Heritage;
1 Draft v17 July 2019
Council’s operating costs continue to be predominately met by contributions from the ARMBs. The
accompanying budget outlines the key areas of revenue and expenditure required to meet the
obligations of Council’s statutory requirements and the implementation of the Ministerial Directions.
2 Draft v17 July 2019
Contents
Executive Summary…………………………………………………………………………………………………………...1
Operating Environment ................................................................................................................ 5
Policy Context .................................................................................................................................. 5
Alpine Industry Context................................................................................................................ 5
Legislative Context ........................................................................................................................ 6
Context of Key Council Relationships .................................................................................... 6
Statement of Corporate Intent ..................................................................................................8
(a) Objectives ..............................................................................................................................8
(b) Main Undertakings ..............................................................................................................8
(c) Nature & Scope of Activities ..........................................................................................8
Strategic Positioning ...................................................................................................................................9
Co-ordination and Co-operation..............................................................................................................9
Knowledge and Understanding ................................................................................................................9
Corporate Governance................................................................................................................................9
(d) Accounting Policies........................................................................................................... 9
(e) Performance Targets ........................................................................................................ 9
(f) Accountability and Reporting ...................................................................................... 10
Business Plan 2019/20 ................................................................................................................. 11
Activities & Performance Targets ........................................................................................... 12
Financial Plan .................................................................................................................................. 17
Overview .......................................................................................................................................... 17
Budget Assumptions ................................................................................................................... 17
Financial Key Performance Indicators………………………………………………………………………….17
Table 3: Three Year Forward Look of Projected Income and Expenditure ............ 19
Appendicies..................................................................................................................................... 21
Appendix 1: Alpine Resorts (Management) Act 1997: S. 1A Object ........................... 21
Appendix 2: Council Statutory Functions and Obligations ......................................... 22
Appendix 3: Council Members and Terms of Office as at 1 July 2018 ..................... 23
Appendix 4: Membership of Council Committees as at 1 July 2018 ......................... 24
Appendix 5: Council Secretariat Staff .................................................................................. 25
Appendix 6: Victorian Government’s Alpine Sector KPIs ............................................ 26
3 Draft v17 July 20194 Draft v17 July 2019
Operating Environment
Policy Context
The 2012 Plan has been the over-arching policy document for Council since its approval in late 2012.
During 2018/19 Council undertook the development of a new industry strategic plan to guide the future
of the sector. Until that plan has received approval, the legacy plan (i.e. the 2012 Plan) remains current.
The Ministerial Directions issued on 23 March 2018, along with the Climate Change Act 2017, the
Victorian Climate Change Framework and associated Victorian Climate Change Adaptation Plan 2017-
2020 provide the current policy context within which Council operates.
The table below summarises the key actions for which Council was the lead agency that continue to
remain in effect from the 2012 Plan.
Table 1: Continuing Actions from The Alpine Resorts Strategic Plan 2012 for which Council was the lead
agency
21
Develop and implement industry and resort-specific climate adaptation plans.
44 Implement the integrated Victorian Alpine Resorts Development Program of infrastructure priorities for the
industry, as a rolling five-year program.
50 Provide financial reports to DELWP, including quarterly financial reports in accordance with legislative and
Ministerial requirements.
Alpine Industry Context
The following is an overview of the key factors that are currently influencing the alpine industry;
The 10-year average data shows winter visitor days spent in alpine resorts is growing at 2.0%
growth per annum for the decade ending 2018. Despite seasonal variation between resorts, the
long-term trends remain relatively stable.
Green season visitor numbers have grown at 3.2% per annum since consistent vehicle and visitor
surveys commenced in 2008/09. Green season activities are predominantly centred around
mountain bike riding and road cycling, although there is an emerging trend around running and
music/food events.
Trends in visitor length of stay continue to move from long-stay to short-stay, as reflected in the
increasing numbers of day-visitors of varied nationalities. This continues to be most pronounced at
resorts closer to Melbourne, affecting decisions in respect of the visitor offer and operational
requirements.
Alpine resorts continue to make significant economic and employment contributions to Victoria and
to the regions in which they are located. In the winter of 2018 alpine resorts generated $1,076
million in Gross State Product (GSP) and over 10,400 jobs. In the summer of 2018-19 alpine resorts
generated $146 million in Gross State Product (GSP) and over 1,400 jobs.
Winter visitation numbers and the associated seasonal economic benefits are closely linked to
prevailing weather conditions and the quantity and quality of reported snow.
Cost pressures continue to be a major concern for many on-mountain businesses and site holders.
The finances of the ARMBs continue to be constrained, with pressure on controlling costs and
maintaining stable revenue streams, whilst trying to meet stakeholder expectations for better
services at lower costs.
Following introduction in 2018 of a new governance model for the northern resorts to improve co-
ordination and provide better strategic planning and oversight, a series of Ministerial Directions was
issued to both the Council and the ARMBs. Council and ARMBs have had to invest significant time
and resources into projects arising out of the Ministerial Directions. There is some uncertainty for the
Council and ARMBs as to any resultant implications until Ministerial guidance is provided.
Climate change continues to impact ARMB operations and decision making, including a greater
reliance on snow making during the winter season and the consequent pressures on managing
production costs and water availability.
5 Draft v17 July 2019 Changing demographics and visitation patterns continue to challenge product development and
associated marketing across both winter and green seasons, including diversifying ARMB revenue
streams and building capacity to benefit from changing markets.
The impact on Victorian visitation arising from the entry of Vail Resorts, which controls a large
stable of resorts in North America, as well as Perisher Blue in NSW, into the Victorian market as a
result of its purchase of the Falls Creek and Mt Hotham ski lift companies, particularly due to the
availability of a single lift pass giving access to all of Vail’s Australian and overseas resorts.
Legislative Context
Consistent with the object1 of the Alpine Resorts (Management) Act 1997 (the ‘Act’), the Council was
established to plan for and facilitate the establishment, development, promotion, management and use
of alpine resorts2.
The Act also establishes the ARMBs of Falls Creek, Lake Mountain and Mount Baw Baw (Southern),
Mount Buller and Mount Stirling, and Mount Hotham. The ARMBs are responsible to plan for and
facilitate the development, promotion, management and use of each such alpine resort and for the
provision of a range of services within each such alpine resort.
The Council is a statutory authority that reports to the Minister and is subject to the general direction
and control of the Minister. The Council is a body corporate and is a public body for the purposes of the
Financial Management Act 1994.
Context of Key Council Relationships
The Council consists of nine members comprising the chairperson of each of the ARMBs and five
persons (including the chairperson)3 appointed on a skills basis by the Governor-in-Council, on the
recommendation of the Minister.
The Council is serviced by a secretariat led by an Executive Officer who is the Council’s Accountable
Officer and is responsible for day to day matters4. An illustration of the key relationships of the Council
is provided in Figure 1 below.
From time to time, the Council may establish working groups or steering committees for specific
purposes. Three committees have been established under the authority of section 24 of the Act5. The
committees are:
Audit and Risk Management Committee
Provides assistance to the Council and its Executive Officer to oversee governance responsibilities
of financial performance and reporting, audit, risk management, information systems, accounting
policies, and monitoring of regulatory compliance.
Co-operation Committee
Encourages a culture of co-operation and knowledge sharing between the alpine resorts by
assisting in planning, sharing programs, consistent policy application, resources and expertise, and
for fostering assistance between the alpine resorts.
Strategic Planning Committee
The Committee provides oversight and investigation and research of issues relevant to the alpine
resorts, to enable the Council to fulfil its role in strategic planning6 including the review of the
Council’s and ARMB Corporate Plans. In addition, the committee oversees the implementation of
the relevant strategic planning projects and acts as the assessment panel for VARDP.
The Chart below depicts the current working relationships between the Council, its Committees, the
Minister, the ARMBs, DELWP, ARIAG and the Secretariat.
1
For details of the overall object of the Act refer to Appendix 1.
2
Refer to Appendix 2 for an explanation of the statutory functions and obligations of the Council.
3
Refer to Appendix 3 for the list of Council members, as at 1 July 2018.
4
Refer to Appendix 5 for a list of secretariat staff.
5
Refer to Appendix 4 for a list of Committee membership, as at 1 July 2018.
6
This is a function of the Council under section 18(aa) of the Act.
6 Draft v17 July 2019Figure 1: Chart Showing Key Alpine Resorts Co-ordinating Council Relationships
7 Draft v17 July 2019Statement of Corporate Intent
The Statement of Corporate Intent includes the following information, in accordance with section 31 of
the Act.
(a) Objectives
The objective of the Council is to, on behalf of the Minister,
address key issues relating to the alpine resorts, including strategic positioning and
advocacy, co-operation and research.
The role of the Council is at a tactical or systems design level. It plays a key role in taking an industry
level perspective to support policy delivery through the ARMBs.
(b) Main Undertakings
The Council has four main undertakings:
Strategic Positioning of the Victorian Alpine Resorts.
High level strategic activities include positioning of the Victorian Alpine Resorts, leading the
implementation of climate adaptation planning, developing sector strategic direction,
infrastructure investment and sector advocacy that promotes the interests of the industry.
Co-ordination and Collaboration across stakeholders in the Victorian Alpine Resorts.
This program area focuses on matters that are of industry-wide importance and provide
mechanisms for enhanced stakeholder engagement across a range of private and public
organisations and agencies within Victoria and interstate and to foster collaboration between
ARMBs.
Knowledge and Understanding of the Victorian Alpine Resorts.
This program area provides for several annual research projects, as well as one-off and less
frequent projects, and publication of research reports. Priority is given to tasks of industry-wide
benefit and understanding critical factors that may impact on the alpine resorts.
Governance of the Council.
This program area focuses on business planning, finance, risk management and reporting, whilst
ensuring that the Council complies with the range of governance requirements to which it is
subject.
(c) Nature & Scope of Activities
The nature of activities to be undertaken by the Council are derived from its mission:
To drive responsible use of Victoria’s Alpine Resorts by:
strategic positioning of, and advocacy for, alpine resorts and the broader
alpine industry
developing strong and collaborative stakeholder partnerships, through
programs and projects
building knowledge of the unique values, assets and opportunities
promoting alpine tourism to grow visitation
fostering proactive environmental and cultural stewardship
working closely with ARMBs, DELWP, Parks Victoria and other land managers,
Visit Victoria and Regional Development Victoria.
The table below describes the broad scope of activities undertaken by the Council on an ongoing basis
in relation to its main undertakings. Specific annual activities are highlighted within the 2019/20
Business Plan.
8 Draft v17 July 2019Table 2: Scope of Alpine Resort Co-ordinating Council Activities
MAIN UNDERTAKINGS ACTIVITIES
Strategic Positioning Take a lead role in advocacy and policy analysis for the alpine industry.
Monitor and report on the implementation of the “Alpine Resorts Strategic plan
2019 – responding to a changing climate”.
Consider climate change in decision making, including taking into
consideration the policy objectives of (s22) and guiding principles of (s23-28)
of the Climate Change Act 2017.
Lead development of climate adaptation planning for the alpine sector and
monitor the sector’s adaptation.
Undertake strategic projects as required.
Co-ordination and Co- Actively foster co-ordination across the alpine industry.
operation Support better and improved collaboration and stakeholder engagement,
including timely and role-appropriate engagement by the ARMB with
Traditional Owners.
Maintain strong links with the alpine industry.
Manage select programs that extend across ARMBs.
Knowledge and Keep abreast of, and undertake, research to grow the understanding of the
Understanding alpine industry7 to provide an evidence base for policy, promotion, investment
and operational decisions.
Communicate current industry knowledge to stakeholders.
Corporate Governance Ensure Council’s functions and proceedings are undertaken in accordance with
the requirements of the Act and the Financial Management Act 1994.
Undertake yearly corporate and business planning activities.
Meet annual reporting requirements.
The Council does not undertake day-to-day operational functions for or at the alpine resorts.
(d) Accounting Policies
The Council has financial policies and procedures and a chart of accounts that are in accordance with the
Financial Management Act 1994. A financial code of practice and Financial Governance Framework has
also been prepared which sets the standards of conduct expected from Council staff.
The Council’s financial statements are prepared in accordance with the Directions of the Minister for
Finance under the Financial Management Act 1994 and applicable Australian Accounting Standards.
(e) Performance Targets
The short-term success of the Council will be measured against the performance targets stated in the
Business Plan.
Longer term success of the Council’s role and functions will be measured by the implementation of the
new industry strategic plan.
7
This may include research into economics, marketing, visitors, and environmental systems.
9 Draft v17 July 2019(f) Accountability and Reporting
The Council will provide the Minister with an annual report8 that includes:
key achievements
corporate governance arrangements
reporting of legislative compliance9
an annual financial report10
an assessment of performance against the Business Plan.
The Council will provide the Minister with regular reports on the implementation of the Ministerial
Directions and will report on current Alpine Sector KPIs developed from the 2012 Plan. Other reports
will be prepared as required.
The Council will immediately notify the Minister if it believes matters have arisen that may prevent or
significantly affect the achievement of its financial targets or objectives within the corporate plan11.
8
The annual report is based on a year-end date of 30 June.
9
This will include compliance with the Alpine Resorts (Management) Act 1997, Freedom of Information Act 1982, the Financial
Management Act 1994, the Protected Disclosures Act 2012, Public Administration Act 2004 and the Privacy and Data Protection Act
2014.
10
This will be audited by the Victorian Auditor-General’s Office (VAGO) and prepared in accordance with the Directions of the
Minister for Finance under the Financial Management Act 1994.
11
This is in accordance with section 32 of the Alpine Resorts (Management) Act 1997.
10 Draft v17 July 2019Business Plan 2019/20
The Business Plan details the activities that will be delivered by the Council in 2019/20 across the four
main undertakings:
Strategic Positioning of the Victorian Alpine Resorts
Co-ordination and Collaboration across stakeholders in the Victorian Alpine Resorts
Knowledge and Understanding of the Victorian Alpine Resorts and critical factors that may
impact them
Governance of the Council
The focus of activities will be on the overseeing and implementing activities to meet Council’s statutory
obligations, implementation of the new Alpine Resorts Strategic Plan and implementing activities
consistent with Ministerial Directions issued on 23 March 2018.
The Strategic Priorities Overview is shown below (Figure 2). Several of the projects or programs are of
an on-going nature and as such, the performance targets, shown in the following tables, have been
adjusted to reflect the current status.
Figure 2: Strategic Priorities for 2019/20: Overview
11 Draft v17 July 2019Activities and Performance Targets 2019/20
Strategic Positioning Activities
The 2019/20 year will focus on working with ARMBs and agencies on implementation of the new Alpine
Resorts Strategic Plan and leading climate adaptation planning.
ACTIVITY SOURCE OF PERFORMANCE
ACTION TARGETS
ARMA Section Nos,
other Act, Ministerial
Direction or 2019
Plan.
Alpine Resorts Strategic Plan 2019 Sec. 18(ad) &33F
Revise Alpine Resort Management Board Framework reviewed and
(ARMB) Master Plan Framework to reflect implemented by 31 December 2019
priorities of the new Alpine Resorts
Strategic Plan 2019 (2019 Plan)
Monitor and report on the implementation Progress reports produced bi-
of the 2019 Plan annually
Develop a collaborative approach between Alpine-related projects are co-
Visit Victoria, RDV and DELWP on key ordinated and referenced in regional
alpine-related projects using existing planning funding priorities
Tourism Destination Action Plans and
Regional Partnership resources
Strategic Plan Cross Government
Taskforce
Establish a cross government taskforce as Taskforce is established and initial
part of the implementation of the 2019 reports and findings available by
Plan to investigate the viability of the March 2020
green season to support economic and
commercial outcomes for the resorts in the
longer-term
Climate Adaptation Planning
Lead the development of climate Ministerial Clear subject based communications
adaptation planning for the alpine sector Directions pieces are produced and made
by identifying gaps in knowledge and available to the sector as required
better communicating the impacts of
climate change in the alpine and regional
context
Monitor the sector’s adaption to the Ministerial Ensure the 2019 Plan is referenced in
impacts of climate change Directions revised ARMB master plans and
corporate plans by 30 June 2020
Victorian Alpine Resorts Development Sec. 18(d)
Program (VARDP)
Implement revised VARDP policy Ministerial VARDP projects incorporate
referencing the Climate Change Act 2017 Directions reference and response to
addressing climate change impacts
Alpine Resort Management Boards
Support ARMBs to develop corporate plans Ministerial Draft corporate plans reviewed in
that align with and support delivery of the Directions conjunction with DELWP, by
2019 Plan and desired biodiversity and Biodiversity 31 December 2019.
natural resource planning outcomes Strategy 2037
12 Draft v17 July 2019Co-ordination and Collaboration Activities
In 2019/20 the Council will continue to facilitate co-ordination and collaboration between ARMBs,
government and industry.
ACTIVITY SOURCE OF PERFORMANCE
ACTION TARGETS
ARMA Section Nos,
other Act, Ministerial
Direction or 2019
Plan
Co-ordination and Collaboration in
Reporting
Provide the Minister with uniform reports for Ministerial Uniform reports are provided in
ARMBs Directions accordance with the Minister’s
timelines
Manage the All Resort Season Pass Program All Resort Season Passes are
produced
Monitor and report on the implementation of Ministerial Reports to the Minister are provided
the recommendations of the ‘Business Directions in accordance with Ministerial
Systems and Services Review of Victoria’s Directions
Northern Resorts’
Finalise and implement the six-yearly review ARC/VSA Report to Minister provided to
of 2019-2025 site rental arrangements under Agreement enable Ministerial determination
the ARC/VSA Agreement to inform the prior to 31 October 2019.
Minister’s determination of an industry-wide
ceiling.
Co-ordination and Collaboration with
Industry, Government and Key
Stakeholders
Provide secretariat support to the Alpine Secretariat support is provided to
Resorts Industry Advisory Group (ARIAG) ARIAG
Monitor the commitment to and report on Ministerial Six-monthly reports are provided to
the ‘Stakeholder Engagement Plan’s Directions the Minister
‘Improvement/Action Plan by ARMBs and
A framework for stakeholder
the Council
engagement is developed by 31
December 2019
Develop a framework with Traditional 2019 Plan A framework is developed in
Owners to facilitate on-going engagement, partnership with Traditional Owners
the development of partnership plans and by June 2020
understanding of connection to country in
alpine areas
Co-ordinate the staging of an Industry Conference conducted by May 2020
Conference to reflect contemporary industry
needs and outcomes of the 2019 Plan
Investigate the likely impact of Vail Resorts Report produced by February 2020
entering the Victorian market
Prepare industry overview and background Sec. 18(a)&(c) Reports are prepared as required
papers for the Minister and DELWP
Undertake a review of the 2002 Alpine 2019 Plan Review is undertaken and a report
Resorts Leasing Policy on behalf of Land prepared for LMP by March 2020
Management Policy Division (LMP)
13 Draft v17 July 2019Knowledge and Understanding Activities
Knowledge and understanding activities will continue to centre on data collection and reporting of
visitation numbers and visitor satisfaction at the Victorian Alpine Resorts for both the winter and green
season to assist industry decision making.
ACTIVITY SOURCE OF PERFORMANCE
ACTION TARGETS
ARMA Section Nos,
other Act, Ministerial
Direction or 2019
Plan
Winter Research Program Sec. 18(ab)
Manage the conduct of winter visitor Vehicle season pass surveys and
satisfaction and vehicle season pass visitor satisfaction surveys are
surveys. conducted during the winter season
and reports prepared
Manage the collection, collation and Winter visitation numbers are
dissemination of weekly winter visitation disseminated on a weekly basis and
numbers. reported annually
Manage the collection, collation and Snowfall and snow depth data is
dissemination of snowfall and snow depth collated and reported annually
data.
Produce the Winter End of Season Report The Winter End of Season Report
and Fact Sheet and Fact Sheet are made available
Summer Research Program Sec. 18(ab)
Manage the conduct of the annual summer Summer visitation surveys are
visitation survey, following a review of completed
methodology
Produce the summer end of season report Summer Report is made available
Economic Significance Study Analysis Sec 18(ab)
Update annual key GSP and employment Annual updated data made widely
numbers from 2016/17 Economic available
Significance study
Carrying Capacity Study Sec 18(ab)
Investigate the benefits of undertaking an Preliminary report produced by
alpine resorts ‘carrying capacity’ study February 2020
focusing on emergency management, the
environment, potable water and waste
water management, etc in conjunction with
the NSW Office of Environment and
Heritage (as a key input to the review of
the Alpine Resorts Planning Scheme.)
14 Draft v17 July 2019Corporate Governance Activities
The corporate governance activities ensure that Council’s functions and proceedings are undertaken in
accordance with good management practice, the requirements of the Alpine Resorts (Management) Act
1997, Public Administration Act 2004 and Standing Directions for the Minister for Finance 2016.
ACTIVITY SOURCE OF PERFORMANCE
ACTION TARGETS
ARMA Section Nos,
other Act, Ministerial
Direction or 2019
Plan
Planning
Develop a Corporate Plan, including yearly Sec. 30(1) The Corporate Plan is delivered to
business plan the Minister by 31 July in each year
Prepare an annual and forward look Sec. 30(3)(c) An annual budget and forward look
budget are included in Corporate Plan
Reporting
Engage external auditors (VAGO) FMA VAGO is engaged
Prepare an annual report FMA The Annual Report is completed
within Parliamentary timeframes
Supporting Delivery
Manage and provide Secretariat support to Support is provided to Council and
Council and its committees. its committees
Oversee the budget and management of Sec. 33 Financial reports are prepared for all
accounts Audit & Risk Management
Committee and Council meetings
Governance Policy PAA 2004
Implement and review policies for Governance policies updated as
compliance with government requirements required and reviewed annually
Conduct annual ARCC Member Reviews are conducted
Performance Reviews
Risk Management 2016 Standing
Directions
Maintain and review a risk management Risk Management Strategy and
policy, strategy and register associated documents are regularly
reviewed by the Audit & Risk
Management Committee
Financial Management Compliance 2016 Standing
Directions
Implement and monitor financial Compliance with Standing Directions
management practices for statutory and for the Minister for Finance 2016
governance compliance achieved
15 Draft v17 July 201916 Draft v17 July 2019
Financial Plan
Overview
The Council is funded by periodical payments from the ARMBs12. Annual contributions are defined in the
Council’s Corporate Plan as approved by the Minister.
For 2019/20, Council proposes that consistent with arrangements approved in previous years, the
majority of funds contributed by ARMBs will be apportioned between Falls Creek, Mount Buller & Mount
Stirling and Mt Hotham ARMBs, based on averaging resort ‘visitor days’ over the previous three years.
Nominal amounts will be contributed by the Southern ARMB to cover associated Council member
expenses and other direct expenses. Formal Directions for the payment of ARMB contributions will be
sought from the Minister.
Council expenditure allows for payments to members of the Council, member superannuation and
expenses, costs associated with on-going research projects, support to ARIAG, meeting expenses and a
range of administrative functions, secretariat costs.
Secretariat staff, facilities and corporate support are provided by the Land Management Policy division
of the Department of Environment, Land, Water and Planning on an at-cost fee for service basis13.
Contingencies have also been made to meet Ministerial expectations for further projects that may arise
from Council’s work previously undertaken in accordance with 2018 Ministerial Directions.
Budget Assumptions
The budget is based on the following assumptions:
Council member fees remain fixed at the current rate by the Minister, in accordance with the
Appointment and Remuneration Guidelines issued by the Department of Premier and Cabinet.
Superannuation payments for Council members and staff will be 9.5 per cent.
Executive and administration support accommodation and corporate support supplied by DELWP at
cost.
The allocation of a 0.6 FTE Project Support Officer and a Chief Finance Officer are provided by
DELWP at no cost to the Council under the current MoU.
Additional contributions from the ARMBs are approved.
Future contributions will be adjusted by the Treasurer’s ‘Annual Rate’.
Financial Key Performance Indicator
Council’s adopted financial Key Performance Indicator of ‘working capital maintained equivalent to 5 per
cent of annual budgeted income’, will continue to be met in respect of the ‘Operating’ income.
12 Section 38 (1)(af) of the Alpine Resorts (Management) Act 1997, states that one of the ARMBs’ functions is ‘to contribute to and
support the operation of the Council’.
13 With the exception of the salary and on-costs of the 0.6 FTE Project Support Officer position
17 Draft v17 July 2019THIS PAGE IS INTENTIONALLY BLANK
18 Draft v17 July 2019ALPINE RESORTS CO-ORDINATING COUNCIL
PROJECTED INCOME AND EXPENDITURE
ROLLING BUDGET
2019-20 2020-2021 2021-2022
Proposed Budget Forward Estimate Forward Estimate Explanatory Notes-June 2019
$ $ $
OUTGOINGS
REGULAR EXTERNAL PROJECT COSTS
Alpine Resorts Industry Advisory Group 3,000 3,000 3,000 Member travel, meeting & facilitation costs for advisory group
Hosting, reconfiguring and maintenance of WEB site [$2,000]; adaptation planning comms pieces x 3 [$12,000]; design and print 2019 Alpine Resorts Strategic
ARCC Communications 20,000 5,500 6,000
Plan [$6,000+].
Ongoing Research & Data Collation Projects 27,500 28,000 28,500 Woolcott visitor satisfaction surveys, all resorts season pass, visitor survey cards and summer & winter research reports costs
Tourism & Transport Forum Subscription 30,000 30,000 30,000 TTF Subscription cost paid on behalf of all ARMBs
Victorian Alpine Resorts Development Program 10,000 10,000 10,000 Provision for external financial and other analysis to support VARDP funding submissions
Alpine Resorts Conference (off-set by external revenue) 45,000 0 0 Proposed industry conference for May 2020
Sub-total 135,500 76,500 77,500
POTENTIAL ADDITIONAL PROJECTS- FUNDED FROM PROVISIONAL FUNDS
Projects associated with implementing 2019 Strategic Plan:
- Year 1 (2019/20), Review of 2002 Leasing Policy- Consultant fees [$20,000]; Collective Cultural Awareness Training for ARMBs and Development of TO
Alpine Resorts Strategic Plan and Climate Change Adaptation Planning 80,000 90,000 150,000 Framework [$40,000]; Support for Strategic Plan Taksforce [$20,000];
- Year 2 (2020/21), Tourism Demand Study- Research Fees [$60,000]; Investigation of Carrying Capacity Study [$30,000];
- Year 3 (2021/22), Update Climate Science Modeling [$100,000]; Mid term review of 2019 Alpine Resorts Strategic Plan [$50,000]
ARMB Business Systems and Services Analysis 20,000 0 0 Allowance for monitoring compliance with Report's recommendations in line with Minister expectations
Collaboration and Stakeholder Engagement 20,000 0 0 Allowance for assisting implementation of Stakeholder Improvement Plan in line with Minister expectations
Project estimate to review current summer vehicle and occupancy counting methodology by external traffic consultants (based on previous costs to review
Review of Summer Vehicle Counting & Occupancy Methodology 15,000
winter vehicle counting methodology)
ARCC Projects & Operating
Provision for Future Projects 65,000 110,000 50,000 Provisional sum to be allocated for unforseen projects
Sub-total 200,000 200,000 200,000
ADMINISTRATION & INTERNAL SUPPORT COSTS
Includes full year FTE staffing as per award increments and on costs (in 2018-2019 one staff member was budgeted at 50% due to secondment), replacement
ARCC staff costs 632,063 654,185 677,081
staff member budgeted at 50% in 2019-2020
19
Associated office expenses including an additional allowance for DELWP Office 365 and shared services charges that are NEW charges levied by DELWP in the
ARCC operating costs 31,235 32,328 33,460
2nd half of 2019-2020 financial year (DELWP agreed to cap the charge in 2018-2019 but not in future years).
Accounting and Financial Services (CFO costs - funded by DELWP) 40,000 40,000 40,000 Cost for provision of CFO services for monthly reports, compliance and annual financial statements- funded through DELWP MoU
Council meeting, travel and members' personal expenses 35,000 37,000 39,000 Allowance for increased on mountain Council members' meeting costs, travel, meals, overnight stays and vehicle Kms costs
Council members fees and superannuation 79,500 80,000 80,000 Council member fees and superannuation payments as per Premier & Cabinet guidelines and remuneration levels
Insurance / audit / annual report 20,500 21,000 21,500 Council members' OHS & P&L insurance, VAGO fees and annual report publication
Motor Vehicle Finance Lease Payments (Vic Fleet) 5,600 5,800 6,000 ARCC red plate motor vehicle costs set by Vic Fleet
Motor Vehicle Running Costs, Interest & Parking 7,500 7,700 7,900 ARCC red plate motor vehicle costs set by Vic Fleet
Telephone, IT & Workstation charges (DELWP supplied services) 13,000 14,000 15,000 Telephone, new digital and SOE charges passed on by DELWP
Sub-total 864,398 892,013 919,941
TOTAL OPERATING EXPENSES 1,199,898 1,168,513 1,197,441 Total of all external project cost and administration and internal support costs
2019-20 2020-21 2020-21
Proposed Budget Forward Estimate Forward Estimate Explanatory Notes- June 2019
Table 3: Three Year Forward Look of Projected Income and Expenditure
$ $ $
REVENUE
ARMB base contribution derived from total operating expenses less other revenue sources (for 2019-20 there are no surplus Trust Funds available to subsidise
Total ARMB base contributions 921,898 914,513 943,441
additional project costs)
Provisional funds required to cover the cost of any additonal projects that Council undertakes in response to its Business Plan, the Alpine Resorts Strategic Plan
Total additional ARMB provisional sum for aditional project activity 200,000 200,000 200,000
and/or Ministerial requirements [as endorsed by SPC for Council approval].
Sub-total 1,121,898 1,114,513 1,143,441
ARCC Income
Alpine Resorts Conference external revenue 25,000 0 0 Conference registration revenue
Accounting services funded from DELWP 40,000 40,000 40,000 DELWP MOU outlines full subsidy for accounting and financial services
Visitor Satisfaction Survey 7,500 8,000 8,000 Contributions from ARMB and Lift Companies (Falls Creek & Mt Hotham) to fund survey
Interest 5,500 6,000 6,000 Estimated bank interest amount received from Westpac investment account (dependant on balance of funds held over the year)
TOTAL OPERATING INCOME 1,199,898 1,168,513 1,197,441 Total Income reflects all ARMB contributions, plus all other funding amounts required to balance budget
Comprehensive Result (Budgeted Transfer from / to reserves) 0 -0 -0
5% Minimum Reserve (KPI) of operating receipts held in bank account float 56,095 55,726 57,172
Draft v17 July 2019THIS PAGE IS INTENTIONALLY BLANK
20 Draft v17 July 2019Appendices
Appendix 1: Alpine Resorts (Management) Act 1997: S. 1A Object
The object of the Act is to make provision in respect of alpine resorts ---
a) for the development, promotion, management and use of the resorts on a sustainable basis
and in a manner that is compatible with the alpine environment, having regard to:
i) environmental and ecological considerations, in particular, climate change: and
ii) economic considerations; and
iii) cultural heritage considerations, in particular, indigenous cultural heritage
considerations; and
b) for the use of the resorts:
i) primarily for alpine recreation and tourism; and
ii) in all seasons of the year; and
iii) by persons from varied cultural and economic groups.’’
21 Draft v17 July 2019Appendix 2: Council Statutory Functions and Obligations
Statutory Functions
The statutory functions of the Council are set out in detail in Section 18 of the Act.
Prescriptive functions are:
to review and co-ordinate the implementation of the Alpine Resorts Strategic Plan
to monitor the development and implementation of Strategic Management Plans for each alpine
resort
to co-ordinate, in conjunction with Tourism Victoria, established under the Tourism Victoria Act 1992,
the overall promotion of alpine resorts
Broad functions are:
to plan for and facilitate the establishment, development, promotion, management and use of alpine
resorts in accordance with the object of this Act
to undertake research into alpine resort issues
to liaise with and encourage the co-operation of all State and local government authorities,
industries, communities and other persons involved in the development, promotion, management
and use of alpine resorts
to make recommendations to the Minister on matters related to the provision and improvement of
services and facilities in alpine resorts
to make recommendations to the Minister on any matter relating to alpine resorts in respect of
which the Minister has asked for recommendations
to attract investment for the improvement of alpine resorts
to carry out any other function conferred on the Council by or under this or any other Act
The Council has no on-ground operational responsibilities within alpine resorts and works collaboratively
with the ARMBs for whole-of-industry benefit. Each ARMB is directly responsible to the Minister.
Obligations
The Council has obligations created by the Act as well as responsibilities to act in accordance with other
legislation.
The Council:
is a body corporate with perpetual succession;
has a common seal;
may sue and be sued in its common name;
may acquire, hold and dispose of real and personal property;
may do and suffer all acts and things that a body corporate may, by law, do and suffer; and
in carrying out its functions and powers, acts on behalf of the Crown.
Council is also required to establish a ‘general account’ and ensure that all monies received are paid into
this account.
In carrying out its functions and powers the Council is subject to the general direction and control of the
Minister.
22 Draft v17 July 2019Appendix 3: Council Members and Terms of Office as at 1 July 2019
MEMBER START FINISH
Ms Arianne Rose
01/01/2016 29/03/2021
Council Chairperson, GIC appointee
Mr Allan Bawden
01/01/2016 31/12/2019
Chairperson Southern ARMB
Dr Jenny Brereton
30/03/2018 29/03/2021
GIC appointee
Mr Christopher Eddy
30/03/2018 29/03/2021
GIC appointee
Ms Julia Hunter
30/03/2018 29/03/2021
GIC appointee
Dr Jacqueline Jennings
30/04/2017 29/03/2021
Chairperson Mount Buller and Mount Stirling ARMB
Mr Ian Maxfield
30/03/2018 29/03/2021
GIC appointee
Ms Maxine Morand
30/03/2018 29/03/2021
Chairperson Mount Hotham ARMB
Ms Joanne Shannon
30/03/2018 29/03/2021
Chairperson Falls Creek ARMB
Alpine Resorts Co-ordinating Council (Council)
Alpine Resort Management Board (ARMB)
Governor in Council (GIC)
23 Draft v17 July 2019Appendix 4: Membership of Council Committees as at 1 July 2019
AUDIT AND RISK MANAGEMENT COMMITTEE
Mr Allan Bawden (Committee Chairperson) Chairperson Southern ARMB
Ms Arianne Rose Council Chairperson, GIC appointee
Ms Joanne Shannon Chairperson Falls Creek ARMB
STRATEGIC PLANNING COMMITTEE
Mr Christopher Eddy (Committee Chairperson) GIC appointee
Dr Jenny Brereton GIC appointee
Ms Julia Hunter GIC appointee
Mr Ian Maxfield GIC appointee
Ms Arianne Rose Council Chairperson, GIC appointee
A Member representing the ARMB Chairpersons ARMB Chairperson (rotating attendance)
CO-OPERATION COMMITTEE
Dr Jacqueline Jennings (Committee Chairperson) Chairperson Mount Buller and Mount Stirling ARMB
Mr Allan Bawden Chairperson Southern ARMB
Ms Maxine Morand Chairperson Mount Hotham ARMB
Ms Joanne Shannon Chairperson Falls Creek ARMB
and by standing invitation
Mr Mark Bennetts CEO Mount Buller and Mount Stirling ARMB
Ms Gail Conman CEO Southern ARMB
Mr Jon Hutchins CEO Mount Hotham ARMB
Mr Stuart Smythe CEO Falls Creek ARMB
The Council Chairperson is an ex officio member of all Council Committees, whether or not expressly
appointed as a member.
24 Draft v17 July 2019Appendix 5: Council Secretariat Staff
STAFF TITLE FULL TIME FUNDING
MEMBER EQUIVALENT
Ian Swan Executive Officer 1.0 Council
Alex Shilton Principal Policy Officer 1.0 Council
Natalie Baran Senior Project Officer 0.8 Council
Glen Forster Senior Policy Officer 0.8 Council
Shanaugh Lyon Project Officer 0.5 Council
Cassie Elder Project Support Officer 0.6 DELWP
From time to time temporary agency staff or short-term secondments from DELWP may be required for
specific projects. The Council currently utilises the services of external consultants to provide Chief
Finance and Accounting Officer services and any other specialist services expertise, as required.
25 Draft v17 July 2019Appendix 6: Victorian Government’s Alpine Sector KPIs
GOALS/STRATEGIC OBJECTIVES TARGET/KPI
Economic (Financial) Goal 1. Trend increase in real Gross State Product attributable to resorts
to be at least 2% p.a. For 2012–17.
2. Trend increase in regional jobs attributable to resorts to be at
least 2% p.a. For 2012–17.
3. Five-year alpine public investment program funded
4. All ARMBs meet government approved corporate plan financial
targets.
Increase visitation (SO1) 5. Trend growth in visitor numbers to be at least 2% per annum for
2012–17.
6. Average annual winter occupancy rates for 2016–20 to be at
least 20% higher than 2010–15.
Improve efficiency and 7. Trend ARMB real unit costs decline at 1% p.a.
accountability (SO2)
8. ARMB CSOs identified, agreed with government and funded.
Environmental Goal 9. Renewable energy to comprise at least 30% of resorts’ total
Respect the alpine environment energy use by 2020.
(SO4)
10. Trend decrease in average annual solid waste disposed per
visitor day to be at least 4% p.a.
11. Habitat protection programs in government approved corporate
plans implemented.
Social Goal 12. Visitor household income profile approaches state profile.
Facilitate access, equity and
13. Visitor ethnicity profile approaches state profile.
diversity (SO5)
14. Increased number of beds available through central booking
services.
15. Range of on-mountain services increases.
Cultural Goal 16. Indigenous employment opportunities created.
17. Events celebrating resort heritage increase.
Cross Cutting Strategic 18. ARMBs implement formal stakeholder consultation programs.
Objectives
19. Planning timelines meet council norms.
Build partnerships (SO3)
Improve regulatory framework 20. Lease inequities removed.
(SO6)
Source: Alpine Resorts Strategic Plan 2012, Council, December 2012
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