Agenda of Ordinary Meeting of Council

Report submitted to the Ordinary Meeting of Council on Monday 31 October 2016. PS-1

Minutes of the Policy and Strategy Committee Meeting held on Monday 10 October 2016.

Present

Councillor Dallas Tout (Chairperson)

The Mayor, Councillor Greg Conkey OAM

Councillor Yvonne Braid

Councillor Paul Funnell

Councillor Dan Hayes

Councillor Vanessa Keenan

Councillor Rod Kendall

Councillor Tim Koschel

Councillor Kerry Pascoe

In Attendance

General Manager (Mr A Eldridge)

Acting Chief Financial Officer (Mr C Richardson)

Community Sector Manager (Mrs J Summerhayes)

Commercial Operations Sector Manager (Ms C Angel)

Project Manager (Mr J Bolton)

Acting Manager City Strategy (Mrs C Priest)

Manager Finance (Mrs C Rodney)

Manager Executive Support (Mr S Gray)

Acting Manager City Development (Mrs A Gray)

Senior Town Planner (Mr A Stander)

Senior Town Planner (Mrs C Rocks)

Marketing & Communications Coordinator (Mr B Koschel)

Governance Officer (Miss B King)

Acknowledgement Of Country

I would like to acknowledge the Wiradjuri people who are the Traditional Custodians of this Land. I would also like to pay respect to the Elders both past and present of the Wiradjuri Nation and extend that respect to other Community members present.

APOLOGIES

No apologies received.

Declarations Of Interest

Councillor Y Braid declared a Non-Pecuniary, Non-Significant Interest in RP – 6 LICENCE TO WAGGA WAGGA COMMUNITY MEDIA INCORPORATED the reason being that she has an association with radio media in the City and vacated the chamber during its consideration.

Councillor K Pascoe declared a Non-Pecuniary, Non-Significant Interest in PSRP-3 DA16/0385 DEMOLITION OF EXISTING DWELLING & CONSTRUCTION OF 4 TWO STOREY 2 BEDROOM UNITS & SUBDIVISION AT 296 EDWARD STREET, WAGGA WAGGA LOT 11 DP 11613 the reason being that the Architect is also working on his development and remained in the chamber during its consideration.

The Mayor, Councillor G Conkey OAM declared a Non-Pecuniary, Non-Significant Interest in PSRP-6 LICENCE TO WAGGA WAGGA COMMUNITY MEDIA INCORPORATED the reason being that he is a presenter on 2AAA and remained in chamber during its consideration.

PUBLIC DISCUSSION FORUM

PSRP-1 DA16/0294 - PROPOSED DEMOLITION AND CONSTRUCTION OF A NEW MULTI-UNIT DEVELOPMENT AND COMMUNITY TITLE SUBDIVISION AT 101 BECKWITH STREET, WAGGA WAGGA

· Mr David Maguire – Speaking against the report

· Mr Garry Salvestro, Salvestro Planning – Speaking in favour of the report

· Mr Tom Ryals – Speaking in favour of the report

PSRP-3 DA16/0385 DEMOLITION OF EXISTING DWELLING & CONSTRUCTION OF 4 TWO STOREY 2 BEDROOM UNITS & SUBDIVISION AT 296 EDWARD STREET, WAGGA WAGGA LOT 11 DP 11613

· Ms Gioia Gianniotis – Speaking in favour of the report

· Mr Adam Morris – Speaking in favour of the report

PROCEDURAL MOTION - CHANGE OF STANDING ORDERS

Recommendation:

On the Motion of Councillors P Funnell and Y Braid

That Council bring forward consideration of PSRP-1 DA16/0294 - PROPOSED DEMOLITION AND CONSTRUCTION OF A NEW MULTI-UNIT DEVELOPMENT AND COMMUNITY TITLE SUBDIVISION AT 101 BECKWITH STREET, WAGGA WAGGA and PSRP-3 DA16/0385 DEMOLITION OF EXISTING DWELLING & CONSTRUCTION OF 4 TWO STOREY 2 BEDROOM UNITS & SUBDIVISION AT 296 EDWARD STREET, WAGGA WAGGA LOT 11 DP 11613 to follow the public discussion forum.

CARRIED

PSRP-1 DA16/0294 - PROPOSED DEMOLITION AND CONSTRUCTION OF A NEW MULTI-UNIT DEVELOPMENT AND COMMUNITY TITLE SUBDIVISION AT 101 BECKWITH STREET, WAGGA WAGGA

Recommendation:

On the Motion of Councillors P Funnell and R Kendall

That Council approve DA16/0294 for Demolition and construction of a new Multi-Unit Development and community title subdivision, subject to the conditions outlined in the Section 79C Assessment Report for DA16/0294.

RECORD OF VOTING ON DEVELOPMENT OR PLANNING MATTERS - SECTION 375A(3) LOCAL GOVERNMENT ACT 1993

For the Motion	Against the Motion
Y Braid
G Conkey OAM
P Funnell
D Hayes
V Keenan
R Kendall
T Koschel
K Pascoe
D Tout

CARRIED

PSRP-3 DA16/0385 DEMOLITION OF EXISTING DWELLING & CONSTRUCTION OF 4 TWO STOREY 2 BEDROOM UNITS & SUBDIVISION AT 296 EDWARD STREET, WAGGA WAGGA LOT 11 DP 11613

Recommendation:

On the Motion of Councillors P Funnell and T Koschel

That Council approve DA16/0385 for Demolition of Existing Dwelling and Construction of 4 Two Storey 2 Bedroom Units and Subdivision, subject to the conditions outlined in the Section 79C Assessment Report for DA16/0385.

RECORD OF VOTING ON DEVELOPMENT OR PLANNING MATTERS - SECTION 375A(3) LOCAL GOVERNMENT ACT 1993

For the Motion	Against the Motion
Y Braid
G Conkey OAM
P Funnell
D Hayes
V Keenan
R Kendall
T Koschel
K Pascoe
D Tout

CARRIED

PROCEDURAL MOTION - ENGLOBO

Recommendation:

On the Motion of Councillors P Funnell and V Keenan

That Council adopt PSRP-7, PSM-1, PSM-2 as recommended in the business papers.

CARRIED

REPORTS FROM STAFF

PSRP-2 DA16/0403 - DETACHED GARAGE WITH STUDIO AND WORKSHOP, ALTERATIONS AND ADDITIONS TO DWELLING AND RETAINING WALLS. LOT 1 DP 86191 60 GURWOOD STREET, WAGGA WAGGA NSW 2650

Recommendation:

On the Motion of Councillors K Pascoe and T Koschel

That Council approve DA16/0403 for Detached Garage with Studio and Workshop, Alterations and Additions to Dwelling and Retaining Walls, subject to the conditions outlined in the Section 79C Assessment Report for DA16/0403.

RECORD OF VOTING ON DEVELOPMENT OR PLANNING MATTERS - SECTION 375A(3) LOCAL GOVERNMENT ACT 1993

For the Motion	Against the Motion
Y Braid
G Conkey OAM
P Funnell
D Hayes
V Keenan
R Kendall
T Koschel
K Pascoe
D Tout

CARRIED

PSRP-4 DA16/0232.01 - ADDITIONS AND ALTERATIONS TO DWELLING IN THE HERITAGE CONSERVATION AREA - MODIFICATION TO INCREASE HEIGHT OF GARAGE - 83 FOX STREET WAGGA WAGGA NSW 2650 - LOT 1 DP 398042

Recommendation:

On the Motion of Councillors P Funnell and K Pascoe

That Council approve DA16/0232.01 made under Section 96(1A) of the Environmental Planning and Assessment Act 1979, to amend DA16/0232 to Modify height of garage (Conservation Area), 83 Fox Street, Wagga Wagga NSW 2650, Lot 1 DP 398042, subject to the conditions outlined in the Section 79C Assessment Report for DA16/0232.01.

RECORD OF VOTING ON DEVELOPMENT OR PLANNING MATTERS - SECTION 375A(3) LOCAL GOVERNMENT ACT 1993

For the Motion	Against the Motion
Y Braid
G Conkey OAM
P Funnell
D Hayes
V Keenan
R Kendall
T Koschel
K Pascoe
D Tout

CARRIED

Councillor K Pascoe vacated the chamber, the time being 7.15pm.

Councillor K Pascoe re-entered the chamber, the time being 7.17pm.

PSRP-5 POL 117 - APPOINTMENT OF ORGANISATION COMMUNITY AND INDVIDUAL CITIZEN MEMBERS TO COUNCIL COMMITTEES POLICY

Recommendation:

On the Motion of Councillors V Keenan and D Hayes

That Council:

a note that there were no submissions received during the exhibition period for the Draft POL 117 Appointment of Organisation Community and Individual Citizen Members to Council Committees Policy

b adopt POL 117 Appointment of Organisation Community and Individual Citizen Members to Council Committees Policy

c receive further information from the General Manager on POL 117 Appointment of Organisation Community and Individual Citizen Members to Council Committees Policy prior to the October Ordinary Council Meeting

A Division was called for on the Motion of Councillor D Tout.

For the Motion	Against the Motion
Y Braid
G Conkey OAM
P Funnell
D Hayes
V Keenan
R Kendall
T Koschel
K Pascoe
D Tout

CARRIED

PSRP-6 LICENCE TO WAGGA WAGGA COMMUNITY MEDIA INCORPORATED

Councillor Y Braid declared a Non-Pecuniary Interest and vacated the chamber, the time being 7:17pm.

Recommendation:

On the Motion of Councillors D Hayes and K Pascoe

That Council:

a enter into a licence agreement with Wagga Wagga Community Media Incorporated upon the following terms:

i Property – Part Lot 23 DP 1062973 at Bourkelands

ii Term – Three years 11 months commencing 1 September 2016 and expiring 31 July 2020

iii Rental – Annual amount of $560 (GST inclusive) with annual rental reviews in accordance with Council’s Revenue and Pricing Policy

b delegate authority to the General Manager to execute any necessary documents on behalf of Council

A Division was called for on the Motion of Councillors D Hayes and R Kendall.

For the Motion	Against the Motion
G Conkey OAM
P Funnell
D Hayes
V Keenan
R Kendall
T Koschel
K Pascoe
D Tout

CARRIED

PSRP-7 WAGGA WAGGA CITY COUNCIL LICENCE AGREEMENT TO SHAW STREET CHILDREN'S CENTRE INC.

Recommendation:

On the Motion of Councillors P Funnell and V Keenan

That Council:

a enter into a licence agreement with Shaw Street Children’s Centre Inc. upon the following terms:

i Property – part Lot 1 DP 241718 and part Lot C DP 21074 known as the Shaw Street Children’s Centre Inc. located at 6 Kent Crescent, Wagga Wagga

ii Term – five (5) years commencing 1 October 2016 and expiring 30 September 2021

iii Rental – annual amount of $560.00 (GST inclusive) adjusted annually according to Council’s Revenue and Pricing Policy

b Authorise the execution of all necessary documents under Council’s Common Seal as necessary

CARRIED

COMMITTEE MINUTES

PSM-1 FLOODPLAIN RISK MANAGEMENT ADVISORY COMMITTEE MINUTES

Recommendation:

On the Motion of Councillors P Funnell and V Keenan

That Council receive and note the minutes of the Floodplain Risk Management Advisory Committee Meeting held on 2 August 2016.

CARRIED

PSM-2 TRAFFIC COMMITTEE MINUTES AND SUMMARY - MEETING HELD 15 SEPTEMBER 2016

Recommendation:

On the Motion of Councillors P Funnell and V Keenan

That the Council receive and note the minutes of the Traffic Committee Meeting held on 15 September 2016.

CARRIED

QUESTIONS/BUSINESS WITH NOTICE

The following Questions/Business with Notice were raised to be addressed in the next available Business Paper.

1. Councillor P Funnell raised concerns regarding a query previously raised in relation to the bus zone at the Island in Docker Street.

2. Councillor K Pascoe raised a query regarding the consistency of the application of the Control related to drainage for laneways.

The following Questions/Business with Notice were raised with no answer required.

1. Councillor K Pascoe passed on congratulations from Wollundry Rotary to all Council staff for their contributions for the Gears and Beers Festival.

2. The Mayor, Councillor G Conkey OAM endorsed Councillor K Pascoe’s comments from Wollundry Rotary and congratulated all staff for their contributions towards the Gears and Beers Festival and Little Big Day Out.

THIS COMPLETED THE BUSINESS OF THE POLICY AND STRATEGY COMMITTEE MEETING WHICH ROSE AT 7.27pm.

…………………………………………………..

CHAIRPERSON

Report submitted to the Ordinary Meeting of Council on Monday 31 October 2016. RP-1

Reports from Staff

RP-1 COUNCIL MEETING AND COMMITTEE STRUCTURE

Author: Priest, Christine

General Manager: Eldridge, Alan

Recommendation

That Council:

a endorse the schedule of a three weekly Council meeting for the period February 2017 to December 2017 as outlined in the report

b delegate authority to the General Manager, in consultation with the Mayor, to change a date of a Council meeting if deemed appropriate

c receive a report on recording and live streaming of Council Meetings including a cost benefit analysis to a future Council meeting

d approve the formation of the following committees and panels, appoint Councillors and call for expressions of interest for community (external) members as below:

i Audit & Risk Committee (Two Councillors, two alternate Councillors, three independent external members)

ii Honours Committee (All Councillors)

iii General Manager’s Performance Review Committee (Mayor and two Councillors)

iv Southern Joint Regional Planning Panel (Two Councillors and one alternate Councillor)

v Local Traffic Committee (One Councillor)

vi Museum of the Riverina Community Committee (Four community members)

vii Sister City Community Committee (The Mayor, two Councillors and six to 15 community members)

viii Public Art Panel (One Councillor and two community members)

ix Loans to Community Organisations Steering Committee (Two Councillors)

x Loans to Community Organisations Committee

xi Annual Grants Panel (Two Councillors and two alternate Councillors)

xii Economic Development Grants Panel (One Councillor and one alternate Councillor)

xiii Sporting Hall of Fame Panel (One Councillor and one alternate Councillor)

e endorse the Mayor and appoint one Councillor to the Australia Day Community Committee and retain the current membership of the Australia Day Committee until February 2017 and then call for Expressions of Interest from community members for membership

f appoint three Councillors and retain the current community membership of the Floodplain Risk Management Advisory Committee until February 2017 and then call for Expressions of Interest from community members for membership

g provide representation on the following external organisations and committees as indicated:

i Bushfire Management Committee (One Councillor)

ii Murray Darling Association (One Councillor)

iii Public Libraries NSW (Country) Committee (Two Councillors)

iv Riverina Conservatorium of Music (One Councillor)

v Riverina Regional Library Advisory Committee (Four Councillors and General Manager and one alternate delegate)

vi Rural Fire Service Zone Agreement Management Committee (One Councillor)

vii Wagga Wagga Tidy Towns (Mayor)

h note that the Mayor and/or the General Manager are, by constitution or resolution, members of:

i Country Mayor’s Association (Mayor and General Manager)

ii Riverina Eastern Regional Organisation of Councils (Mayor and General Manager)

iii NSW Inland Forum (Mayor and General Manager)

iv Riverina Regional Cities (Mayor and General Manager)

v Wagga Wagga City Council /Crown Lands Working Party (Mayor and General Manager)

vi Regional Capitals Australia (Mayor and General Manager)

vii Australian Rural Road Group (General Manager)

viii Evocities (Mayor)

i acknowledge the contribution of the volunteers of the previous advisory committees which operated during the term of the previous Council

Report

In accordance with Council’s adopted Code of Meeting Practice, Council is required to review its committee structure within 12 months of a Local Government general election.

The purpose of this report is to address this requirement, adopt a Council meeting process and consider the structure and representation of Council committees and panels.

Council Meeting Structure

A review of Council’s meeting structure has been undertaken having consideration to the Office of Local Government guidelines, benchmarking of NSW Council’s, feedback from Councillors and staff and alignment to contemporary best practice.

To enable decisions to be made in a timely manner, facilitating a more responsive Council it is proposed that Council remove the current structure of Policy and Strategy Committee, Council Meetings and Supplementary Council Meetings and replace it with a three weekly Council Meeting structure to commence in February 2017.

It should be noted that public addresses would occur at the Ordinary Council meeting and all matters previously referred the Policy and Strategy Committee would be dealt with directly by Council at its Ordinary Council meeting.

This change requires an amendment to Council’s Code of Meeting Practice to enable community representations to be made at the Council meetings as outlined in RP-2.

Set out below is the proposed schedule of meetings for endorsement by Council for the period February 2017 to December 2017.

· Monday, 6 February 2017

· Monday, 27 February 2017

· Monday, 20 March 2017

· Monday, 10 April 2017

· Monday, 1 May 2017

· Monday, 22 May 2017

· Tuesday, 13 June 2017

· Monday, 3 July 2017

· Monday, 24 July 2017

· Monday, 14 August 2017

· Monday, 4 September 2017

· Monday, 25 September 2017

· Monday, 16 October 2017

· Monday, 6 November 2017

· Monday 27 November 2017

· Monday, 11 December 2017

Notes:

Monday, 12 June 2017 is the Queen’s birthday long weekend.

Monday, 11 December 2017 has brought forward one week due to the Christmas break.

Live Streaming and recording of Council Meetings

Councillors are requested to consider recording of Council meetings to be made available to the general public, through such means as uploading podcasts of Council Meetings onto the Council website, live-streaming of Council Meetings and other means that may make Council proceedings more accessible to our community.

A number of NSW Councils are currently providing this service to their communities. It is proposed that Council consider options, costs, benefits and potential issues relating to the delivery of this service to our community.

It is therefore recommended that Council receive a report on recording and live streaming of Council Meetings including a cost benefit analysis to a future Council meeting.

Council Committees

Council has the ability to determine its own committee structure as it deems appropriate. All Committees are created via a resolution made under s355 of the Local Government Act 1993 (the Act).

The Local Government Regulations Sections 260 and 261 make provision for the establishment of Council Committees and functions of committees.

Council has specific council committees which are required either under legislation or which are deemed appropriate for Council to establish. These committees are outlined below:

Committee	Function	Membership	Delegated Authority	Governing Terms
Audit & Risk Committee	To provide independent assurance and assistance to Council on risk management, control, governance, and external accountability responsibilities.	2 Councillors 3 Independent external members	Yes Restricted to the defined limits of the Charter	Audit and Risk Committee Charter
Honours Committee	Consideration to and make recommendations to Council relating to City honours being bestowed on a person or group.	All Councillors	No	Honours Committee Constitution
General Manager’s Performance Review Committee	Undertakes the review of the General Manager’s performance, to monitor progress and achievement of the identified outcomes and provide recommendations to Council.	Mayor 2 Councillors	No	N/A
Local Traffic Committee	Technical review committee that is required to advise and make recommendations to the Council on traffic related matters referred to it by the Council or other authorities	1 Councillor 1 Representative of NSW Police 1 Representative of the Roads and Martine Services 1 Local State member of Parliament (MP) or their nominee	Yes Roads Act	A Guide to the Delegation of Councils for the Regulation of Traffic
Southern Joint Regional Planning Panel	Make determinations on Development Applications that meet the criteria which is laid out in Schedule 4A of the Environmental Planning and Assessment Act	2 Councillors 1 Alternate Councillor 3 Members appointed by the Minister of Planning	Yes	Planning Panel Operating Procedures
Australia Day Community Committee	To plan, organise and execute the Australia Day celebrations for the Wagga Wagga Local Government.	Mayor 1 Councillor 8 to 11 community members	Yes Section 377 of the Act	Australia Day Community Committee
Sister City Community Committee	To assist the Mayor’s office in planning, organising and providing community input into local arrangements for Sister City exchanges.	Mayor 1 Councillor 6 to 15 community members	Yes Section 377 of the Act	Sister City Community Committee Terms of Reference
Floodplain Risk Management Advisory Committee	To provide advice to Council on the development, implementation and delivery of actions contained in the Floodplain Risk Management Plan for the Wagga Wagga Local Government Area.	3 Councillors 4 Community members Industry representatives: - Murrumbidgee Catchment Management Authority - State Emergency Services - NSW Office of Environment and Heritage - NSW Department of Planning - Council staff	No	Floodplain Risk Management Advisory Committee Constitution
Museum of the Riverina Community Committee	The Museum of the Riverina Botanic Gardens site is under a Lease arrangement between the Lessor Wagga Wagga and District Historical Society Inc. and Lessee Wagga Wagga City Council for the establishment and operation of the Museum of the Riverina.	4 Historical Society members 4 Community members	No	N/A Lease arrangement
Loans to Community Organisations Steering Committee	The Loans to Community Organisations Steering Committee are responsible to evaluate and recommend to Council all loan applications greater than $250,000.	2 Councillors 2 Members of the Audit & Risk Committee	No	Loans to Community Organisations Management Policy
Loans to Community Organisations Committee	The Loans to Community Organisations Committee are responsible to evaluate and recommend to Council all loan applications up to $250,000.	2 Members of the Audit & Risk Committee	No	Loans to Community Organisations Management Policy
Public Art Advisory Panel	The Public Art Panel has been established in accordance with Council’s adopted Public Art Policy, to guide the commissioning of public art and management of the Public Art Collection in line with the Public Art Policy and Public Art Plan.	1 Councillor 1 Industry representative 2 Community members	No	Public Art Panel Terms of Reference
Annual Grants Panel	Council’s Annual Grants Program aims to distribute small grants to the community to deliver a range of community capacity building projects, which meet advertised criteria.	2 Councillors 2 Alternate Councillors	No	N/A
Economic Development Grants Panel	The Economic Development Grants Panel has been established in accordance with Council’s Donations under Section 356 of the Local Government Act Policy to assess Economic Development Grant applications.	1 Councillor 1 Alternate Councillor 1 Representative from the Wagga Wagga Business Chamber	No	Donations under Section 356 of the Local Government Act Policy
Sporting Hall of Fame Panel	The Sporting Hall of Fame Panel has been established as a selection panel to select potential applicants for the annual nominations for induction to the Sporting Hall of Fame.	1 Councillor and 1 Alternate Councillor 2 Community members	No	N/A

External organisations and committees

In addition to the above, Council also has representation on a number of external organisations and committees being:

· Bushfire Management Committee (1 Councillor)

· Murray Darling Association (1 Councillor)

· Public Libraries NSW (Country) Committee (2 Councillors)

· Riverina Conservatorium of Music (1 Councillor)

· Riverina Regional Library Advisory Committee (4 Councillors and General Manager and one alternate delegate)

· Rural Fire Service Zone Agreement Management Committee (1 Councillor)

· Wagga Wagga Tidy Towns (Mayor)

Miscellaneous membership by constitution, resolution or agreement

Further, the Council is also represented on the following committees and bodies, by the Mayor and/or General Manager, by constitution, resolution or agreement:

· Country Mayor’s Association (Mayor and General Manager)

· Riverina Eastern Regional Organisation of Councils (Mayor and General Manager)

· NSW Inland Forum (Mayor and General Manager)

· Riverina Regional Cities (Mayor and General Manager)

· Wagga Wagga City Council /Crown Lands Working Party (Mayor and General Manager)

· Regional Capitals Australia (Mayor and General Manager)

· Australian Rural Road Group (General Manager)

· Evocities (Mayor)

Briefings and Informal Gatherings

It is recommended that Monday nights (apart from Council Meeting nights) be set aside as a dedicated night to deal with any requirements for briefings for the Council. This will include the opportunity to discuss the overall progress on major projects if required.

It is proposed to that informal gathering of Councillors which will occur one hour prior to each Ordinary Council Meeting.

Budget

N/A

Policy

Code of Meeting Practice.

Impact on Public Utilities

N/A

Link to Strategic Plan

1. We are an engaged and involved community

1.1 We are a community that is informed and involved in decisions impacting us

QBL Analysis

	Positive	Negative
Social	N/A	N/A
Environmental	N/A	N/A
Economic	N/A	N/A
Governance	That Council engages with the community to ensure transparency and accountability in its decision making.	N/A

Risk Management and Work Health and Safety Issues for Council

No specific issues identified.

Internal / External Consultation

· Office of Local Government

· NSW Council’s

· Councillors

· Council Officer

· Committee Members

	Positive	Negative
Social	N/A	N/A
Environmental	N/A	N/A
Economic	N/A	N/A
Governance	The review of the Code will provide greater transparency and accountability by Council to the community in delivery of its meeting processes.	N/A

Positive

Negative

Social

N/A

Environmental

N/A

Economic

N/A

Governance

The review of the Code will provide greater transparency and accountability by Council to the community in delivery of its meeting processes.

N/A

	Positive	Negative
Social	N/A	N/A
Environmental	N/A	N/A
Economic	N/A	N/A
Governance	That Council complies with relevant legislation that provides transparency and accountability to the community in its decision making.	N/A

Positive

Negative

Social

N/A

Environmental

N/A

Economic

N/A

Governance

That Council complies with relevant legislation that provides transparency and accountability to the community in its decision making.

N/A

	Positive	Negative
Social	Opportunity to be informed and to discuss road and transport issues at a national level and provide input into ways to address these issues both locally and nationally.	N/A
Environmental	N/A	N/A
Economic	N/A	N/A
Governance	Councillor professional development. Alignment with Council Policy 025.	N/A

Positive

Negative

Social

Opportunity to be informed and to discuss road and transport issues at a national level and provide input into ways to address these issues both locally and nationally.

N/A

Environmental

N/A

Economic

N/A

Governance

Councillor professional development. Alignment with Council Policy 025.

N/A

	Positive	Negative
Social	N/A	N/A
Environmental	N/A	N/A
Economic	N/A	N/A
Governance	Council may at some time in the future require assistance from Local Government NSW in dealing with legal matters that have broader implications for the Local Government sector.	It could be argued that the Wagga Wagga community should not be contributing to legal costs for a matter related to another Council.

Positive

Negative

Social

N/A

Environmental

N/A

Economic

N/A

Governance

Council may at some time in the future require assistance from Local Government NSW in dealing with legal matters that have broader implications for the Local Government sector.

It could be argued that the Wagga Wagga community should not be contributing to legal costs for a matter related to another Council.

Report submitted to the Ordinary Meeting of Council on Monday 31 October 2016. RP-6

RP-6 FINANCIAL PERFORMANCE REPORT AND QUARTERLY BUDGET REVIEW SEPTEMBER 2016

Author: Rodney, Carolyn

Acting Sector Manager: Richardson, Craig

Recommendation

That Council:

a approve the variations to the 2016/17 original budget for the month ended 30 September 2016 and note the deficit budget of ($283K) as presented in this report

b note the Responsible Accounting Officer’s reports, in accordance with the Local Government (General) Regulation 2005 (Part 9 Division 3: Clause 203) that the financial position of Council is satisfactory having regard to the original estimates of income and expenditure and the recommendations made above

c note details of the external investments as at 30 September 2016 in accordance with Section 625 of the Local Government Act.

Executive Summary

· The September 2016 budget variations have resulted in a reduction to the deficit from ($351K) as reported in the August Report to ($283K). The reduction in deficit results from the receipt of a grant to undertake the land classification process associated with the pending commencement of the Emergency Services Property Levy (ESPL). The land classification process was completed using existing staff resources.

· Funding sources are still being considered for the remaining deficit of ($283K) as a result of the previously reported 2016/17 Financial Assistance Grants reduction and will be presented to Council as a future variation.

· Council experienced a positive monthly investment performance for the month of September and is currently tracking on budget for the full financial year.

· Council has received a number of grants and contributions during the last quarter which demonstrates the partnership approach with community organisations, sporting groups and other levels of government in the delivery of projects and programs for the overall benefit of the City.

· The Quarterly Budget Review (QBR) presents a summary of Council’s original budget and subsequent variations as resolved by Council through the monthly financial report presented by Council. The QBR includes a Budget Review Statement on Legals, Consultancies and Contracts.

Report

Key Performance Indicators

OPERATING INCOME

Total operating income is 24% of approved budget which is on track to budget for the end of September (this percentage excludes capital grants and contributions). An adjustment has been made to reflect the levy of rates which occurred at the start of the financial year. Excluding this adjustment, operating income received is 65%.

OPERATING EXPENSES

Total operating expenditure is 25% of approved budget and is tracking to budget for the full financial year.

CAPITAL INCOME

Total capital income is 7% of approved budget. Please note that the actual income from capital is influenced by the timing of the receipt of capital grants and contributions relating to projects.

CAPITAL EXPENDITURE

Total capital expenditure including commitments is 34% of approved budget. This is due to the commitments raised for Bomen Enabling Roads and land purchases of $26 million for the Stage 1 RIFL project.

WAGGA WAGGA CITY COUNCIL STATEMENT OF FINANCIAL PERFORMANCE 1 JULY 2016 TO 30 SEPTEMBER 2016
CONSOLIDATED STATEMENT
	ORIGINAL BUDGET 2016/17 $'000	BUDGET ADJ 2016/17 $'000	APPROVED BUDGET 2016/17 $'000	YTD ACTUAL EXCL COMMT'S 2016/17	COMMT'S 2016/17 $'000	YTD ACTUAL + COMMT'S 2016/17 $'000	YTD % OF BUD
Revenue
Rates & Annual Charges	(60,642,286)	0	(60,642,286)	(16,121,321)	0	(16,121,321)	27%
User Charges & Fees	(23,631,263)	(10,000)	(23,641,263)	(4,487,292)	33,454	(4,453,838)	19%
Interest & Investment Revenue	(3,406,597)	0	(3,406,597)	(1,251,646)	0	(1,251,646)	37%
Other Revenues	(3,123,096)	(11,766)	(3,134,862)	(884,083)	0	(884,083)	28%
Operating Grants & Contributions	(14,779,516)	(497,411)	(15,276,927)	(3,111,061)	0	(3,111,061)	20%
Capital Grants & Contributions	(34,768,294)	(16,030,560)	(50,798,854)	(3,877,107)	0	(3,877,107)	8%
Total Revenue	(140,351,052)	(16,549,737)	(156,900,789)	(29,732,510)	33,454	(29,699,056)	19%

Expenses
Employee Benefits & On-Costs	42,105,886	108,606	42,214,492	9,779,414	52,467	9,831,881	23.29%
Borrowing Costs	3,953,083	(157,682)	3,795,402	806,111	0	806,111	21.24%
Materials & Contracts	2,719,884	11,855	2,731,739	2,138,348	727,996	2,866,344	104.93%
Depreciation & Amortisation	32,405,375	0	32,405,375	8,101,344	0	8,101,344	25.00%
Other Expenses	37,495,505	2,845,340	40,340,845	7,573,863	1,389,696	8,963,558	22.22%
Total Expenses	118,679,732	2,808,120	121,487,852	28,399,080	2,170,159	30,569,238	25.16%

Net Operating (Profit)/Loss	(21,671,319)	(13,741,617)	(35,412,936)	(1,333,430)	2,203,613	870,182

Cap/Reserve Movements
Capital Exp - Renewals	32,267,446	6,510,058	38,777,504	1,688,860	3,230,641	4,919,500	12.69%
Capital Exp - New Projects	37,678,456	8,118,862	45,797,318	716,247	26,376,897	27,093,144	59.16%
Capital Exp - Project Concepts	8,314,763	789,044	9,103,807	57,675	51,978	109,653	1.20%
Loan Repayments	2,603,821	(173,623)	2,430,198	607,549	0	607,549	25.00%
New Loan Borrowings	(13,859,917)	8,991,975	(4,867,943)	0	0	0	0.00%
Sale of Assets	(4,982,151)	3,492,451	(1,489,700)	(210,687)	0	(210,687)	14.14%
Net Movements Reserves	(7,945,724)	(13,635,747)	(21,581,471)	0	0	0	0.00%
Total Cap/Res Movements	54,076,694	14,093,019	68,169,713	2,859,644	29,659,515	32,519,160	47.70%

Net Result after Depreciation	32,405,375	351,402	32,756,777	1,526,214	31,863,128	33,389,342

Add back Depreciation Expense	32,405,375	0	32,405,375	8,101,344	0	8,101,344

Cash Budget (Surplus)/Deficit	(0)	351,402	351,402	(6,575,130)	31,863,128	25,287,998

Revised budget result - Surplus/(Deficit)

$’000s

Original funded budget result as adopted by Council

Budget variations approved to date

Budget variations for September 2016

($351K)

$68K

Proposed revised budget result as at 30 September 2016

($283K)

The proposed Budget Variations to 30 September 2016 are listed below:

*Budget Variation*	*Amount*			*Funding Source*	*Net Impact* *Fav/ (Unfav)*
*1 – We are an engaged and involved community*
Emergency Services Property Levy	($68K)			Emergency Services Property Levy Grant Income ($68K)	$68K
The NSW Government Treasury has paid Council as initial compensation to offset the estimated costs associated with the land classification process as part of implementing the Emergency Services Property Levy (ESPL) commencing 1 July 2017. Council’s rating staff have undertaken the classification process with no additional costs to the organisation.
Corporate IT Applications	$22K	Accounting Salaries ($22K)			Nil
The Supply Chain Management Module is an automated workflow solution for purchase orders within Technology One, which will provide enhanced control over procuring goods and services. The initial cost is $22K for set-up, implementation, support and training, with ongoing annual support costs of $3K increasing 3% per annum.					Nil
Alan Turner Depot Security Upgrade	$159K	Plant Replacement Reserve ($159K)			Nil
A security upgrade at the Alan Turner Depot is required to improve security at this location. The works totalling $159K will include lighting upgrades, personal swipe card access, a central recorder and a swipe/intercom bollard which is proposed to be funded from the Plant Replacement Reserve.					Nil
*2 – We are a safe and healthy community*
Tolland Park Pump Bike Track	$81K	Tolland Park Pump Bike Track Grant Income ($50K) Renew Playground Equipment ($15K) Maintain Recreation Assets (16K)			Nil
Council has been successful in securing a $50K grant from the State Government Social Housing Community Improvement fund for the construction of a pump bike track in Emblen Park, Tolland at a cost of $81K. It is proposed that Council accept the grant and contribute $31K from Renew Playground Equipment & Maintain Recreation Assets budgets.					Nil
Henwood Park Footpath	$47K	Henwood Park Footpath Grant Income ($47K)			Nil
Council has been successful in securing a $47K grant from the State Government Social Housing Community Improvement fund for the construction of a footpath which will link the toilet facilities to the skate park at Henwood Park.					Nil
*4 – We have a sustainable natural and built environment*
Leavenworth Drive Street Lighting	$18K			Street Lighting Improvements Budget ($18K)	Nil
Additional funds are required for the Leavenworth Drive Street Lighting project for the installation of two additional light poles, outreaches and lighting on the approach to the marked crossing to meet AS1158 Street Lighting Standards. This will bring the total budget for the project up to $29K.
Red Hill Road Street Lighting	$64K		Section 94 Developer Contributions ($64K)		Nil
Funds are required for the Red Hill Road Street Lighting Project to install lighting at the intersection of Redhill Road and the Olympic Highway. The works will bring the lighting in line with the standard required by RMS. This aligns with item RT24 on the adopted Section 94 Plan.					Nil
*SURPLUS/(DEFICIT)*					$68K

Current Restrictions

WAGGA WAGGA CITY COUNCIL
CASH & INVESTMENTS REVIEW STATEMENT
30 SEPTEMBER 2016
	Approved Changes
	OPENING BALANCE 2016/17	SEPTEMBER QTR BUDGET VARIATIONS APPROVED TO DATE (incl carryovers)	REVISED BALANCE	RECOMMENDED CHANGES for Council Resolution	PROJECTED YEAR END RESULT

Total Unrestricted	(3,031,929)		(3,031,929)		(3,031,929)

Externally Restricted
Developer Contributions	(17,704,022)	2,819,889	(14,884,133)	64,114	(14,820,019)
Specific Purpose Unexpended Grants/Contributions	(3,473,810)	3,473,810	0		0
Sewer Reserve	(18,901,071)	4,196,682	(14,704,388)		(14,704,388)
Solid Waste Reserve	(12,051,321)	46,116	(12,005,206)		(12,005,206)
Stormwater Levy Reserve	(2,765,884)	164,020	(2,601,864)		(2,601,864)
Total Externally Restricted	(54,896,108)	10,700,517	(44,195,591)	64,114	(44,131,477)

Internally Restricted
Airport Reserve	(268,166)	(7,492)	(275,658)		(275,658)
Art Gallery Reserve	(51,990)	17,500	(34,490)		(34,490)
Ashmont Community Facility Reserve	(4,500)	0	(4,500)		(4,500)
Bridge Replacement Reserve	(506,667)	420,000	(86,667)		(86,667)
CBD Carparking Facilities Reserve	(1,030,495)	60,537	(969,958)		(969,958)
CCTV Reserve	(64,476)	0	(64,476)		(64,476)
Cemetery Perpetual Reserve	(213,521)	0	(213,521)		(213,521)
Cemetery Reserve	(445,286)	0	(445,286)		(445,286)
Civic Theatre Operating Reserve	(100,000)	0	(100,000)		(100,000)
Civic Theatre Technical Infrastructure Reserve	(105,450)	0	(105,450)		(105,450)
Civil Projects Reserve	(155,883)	0	(155,883)		(155,883)
Community Amenities Reserve	(5,685)	0	(5,685)		(5,685)
Council Election Reserve	(181,058)	0	(181,058)		(181,058)
Economic Development Incentives Reserve	(19,500)	0	(19,500)		(19,500)
Employee Leave Entitlements Gen Fund Reserve	(3,352,639)	0	(3,352,639)		(3,352,639)
Estella Community Centre Reserve	(230,992)	0	(230,992)		(230,992)
Family Day Care Reserve	(121,002)	0	(121,002)		(121,002)
Fit for the Future Reserve	(563,959)	(281,439)	(845,398)		(845,398)
Generic Projects Saving	(1,044,145)	103,039	(941,106)		(941,106)
Glenfield Community Centre Reserve	(17,704)	0	(17,704)		(17,704)
Grassroots Cricket Reserve	(60,942)	0	(60,942)		(60,942)
Gravel Pit Restoration Reserve	(738,010)	0	(738,010)		(738,010)
Gurwood Street Property Reserve	(50,454)	0	(50,454)		(50,454)
Industrial Land Development Reserve	(328,851)	0	(328,851)		(328,851)
Information Services / E-Business Reserve	(378,713)	0	(378,713)		(378,713)
Infrastructure Replacement Reserve	(78,375)	28,233	(50,142)		(50,142)
Insurance Variations Reserve	(28,644)	0	(28,644)		(28,644)
Internal Loans Reserve	(1,919,047)	620,914	(1,298,133)		(1,298,133)
Lake Albert Improvements Reserve	(113,972)	115,851	1,879		1,879
LEP Preparation Reserve	(38,665)	36,120	(2,545)		(2,545)
	OPENING BALANCE 2016/17	SEPTEMBER QTR BUDGET VARIATIONS APPROVED TO DATE (incl carryovers)	REVISED BALANCE	RECOMMENDED CHANGES for Council Resolution	PROJECTED YEAR END RESULT
Livestock Marketing Centre Reserve	(4,880,505)	1,493,173	(3,387,332)		(3,387,332)
Lloyd Environmental Projects Reserve	(101,371)	0	(101,371)		(101,371)
Museum Acquisitions Reserve	(39,378)	0	(39,378)		(39,378)
Oasis Building Renewal Reserve	(172,000)	121,000	(51,000)		(51,000)
Oasis Plant Reserve	(1,115,347)	0	(1,115,347)		(1,115,347)
Parks & Recreation Projects	(91,288)	36,000	(55,288)		(55,288)
Pedestrian River Crossing (old Riverside) Reserve	(48,031)	0	(48,031)		(48,031)
Plant Replacement Reserve	(5,296,941)	0	(5,296,941)	158,636	(5,138,305)
Playground Equipment Replacement Reserve	(51,230)	0	(51,230)		(51,230)
Project Carryovers Reserve	(1,841,669)	1,841,669	(0)		(0)
Public Art Reserve	(31,457)	51,424	19,967		19,967
Robertson Oval Redevelopment Reserve	(86,697)	0	(86,697)		(86,697)
Senior Citizens Centre Reserve	(13,627)	0	(13,627)		(13,627)
Silverlite Reserve	(29,980)	0	(29,980)		(29,980)
Sister Cities Reserve	(40,914)	5,000	(35,914)		(35,914)
Stormwater Drainage Reserve	(473,996)	234,661	(239,335)		(239,335)
Strategic Real Property Reserve	(5,136)	65,927	60,791		60,791
Street Lighting Replacement Reserve	(74,755)	0	(74,755)		(74,755)
Subdivision Tree Planting Reserve	(155,795)	0	(155,795)		(155,795)
Sustainable Energy Reserve	(520,442)	0	(520,442)		(520,442)
Traffic Committee Reserve	(50,000)	0	(50,000)		(50,000)
Unexpended External Loans Reserve	(163,087)	0	(163,087)		(163,087)
Total Internally Restricted	(27,502,435)	4,962,117	(22,540,318)	158,636	(22,381,682)

Total Restricted	(82,398,543)	15,662,634	(66,735,909)	222,750	(66,513,159)

Total Cash and Investments	(85,430,472)	15,662,634	(69,767,838)	222,750	(69,545,088)

Contracts Review Statement

WAGGA WAGGA CITY COUNCIL
CONTRACTS REVIEW STATEMENT
30 SEPTEMBER 2016
Contract Number	Contractor	Contract Detail & Purpose	Contract Value	Start Date	Duration of Contract	Budgeted (Yes/No)
2016/531	John Oultram Heritage & Design	Heritage Planning Advice	$75,000	15/09/2016	3 years	y
2016/530	Airport Consultancy Group Pty Ltd	Airport Taxi Way Upgrade Desings	$ 128,320	31/07/2016	15 weeks	y
2016/529	Wagga Trucks Hino	Supply of garbage truck	$ 162,153	29/07/2016	12 weeks	y

Notes:
1. Minimum reporting level is 1% of estimated income from continuing operations or $50,000, whichever is the lesser.
2. Contracts to be listed are those entered into during the quarter and have yet to be fully performed, excluding contractors that are on Council's Preferred Supplier list.
3. Contracts for employment are not required to be included.
4. Where a contract for services etc was not included in the budget, an explanation is to be given (or reference made to an explanation in another Budget Review Statement).

Consultancy & Legal Expenses Budget Review Statement

WAGGA WAGGA CITY COUNCIL
CONSULTANCY & LEGAL EXPENSES BUDGET REVIEW STATEMENT
30 SEPTEMBER 2016
	Approved Changes
	BUDGET 2016/17	SEPTEMBER QTR BUDGET VARIATIONS APPROVED TO DATE	REVISED BUDGET	RECOMMENDED CHANGES for Council Resolution	PROJECTED YEAR END RESULT	ACTUAL YTD

Consultancy Expenses	299,427	(2,285)	297,142	0	297,142	271,734

Legal Expenses	308,084	456	308,540	0	308,540	133,336

Investment Summary as at 30 September 2016

In accordance with Clause 212 of the Local Government (General) Regulation 2005, details of Wagga Wagga City Council’s external investments are detailed below:

Institution	Rating	Closing Balance Invested 31/08/2016 $	Closing Balance Invested 30/09/2016 $	September EOM Current Yield %	September EOM % of Portfolio	Investment Date	Maturity Date	Term (mth)
*Short Term Deposits*
Police Credit Union	NR	1,000,000	1,000,000	3.02%	0.94%	6/06/2016	6/12/2016	6
BOQ	A-	0	2,000,000	2.75%	1.88%	2/09/2016	4/04/2017	7
NAB	AA-	1,000,000	1,000,000	2.96%	0.94%	2/06/2016	3/01/2017	7
NAB	AA-	1,000,000	1,000,000	2.90%	0.94%	25/07/2016	25/01/2017	6
BOQ	A-	2,000,000	2,000,000	2.98%	1.88%	7/12/2015	7/12/2016	12
Bank of Sydney	NR	1,000,000	2,000,000	2.75%	1.88%	30/09/2016	29/09/2017	12
CUA	BBB+	1,000,000	1,000,000	3.15%	0.94%	10/02/2016	9/02/2017	12
NAB	AA-	1,000,000	1,000,000	3.00%	0.94%	23/02/2016	25/10/2016	8
ME Bank	BBB+	1,000,000	1,000,000	3.10%	0.94%	23/02/2016	23/02/2017	12
Auswide	BBB	1,000,000	1,000,000	3.07%	0.94%	1/03/2016	22/12/2016	10
MyState	BBB	1,000,000	0	0.00%	0.00%	1/03/2016	27/09/2016	7
AMP	A+	2,000,000	2,000,000	3.00%	1.88%	2/08/2016	2/08/2017	12
CBA	AA-	2,000,000	2,000,000	2.55%	1.88%	25/08/2016	25/10/2016	2
Newcastle Permanent	BBB+	2,000,000	2,000,000	2.70%	1.88%	31/08/2016	30/11/2016	3
*Total Short Term Deposits*		17,000,000	19,000,000	2.88%	17.81%
*At Call Accounts*
NAB	AA-	2,834,279	1,246,544	1.50%	1.17%	N/A	N/A	N/A
NAB	AA-	11,387,194	12,091,488	2.19%	11.34%	N/A	N/A	N/A
St George	AA-	2,949	0	0.00%	0.00%	N/A	N/A	N/A
AMP	A+	110	110	0.00%	0.00%	N/A	N/A	N/A
AMP	A+	178,125	178,469	2.20%	0.17%	N/A	N/A	N/A
Beyond Bank	BBB+	74,073	74,136	1.00%	0.07%	N/A	N/A	N/A
CBA	AA-	23,913	23,863	0.00%	0.02%	N/A	N/A	N/A
*Total At Call Accounts*		14,500,643	13,614,609	2.12%	12.76%
Institution	Rating	Closing Balance Invested 31/08/2016 $	Closing Balance Invested 30/09/2016 $	September EOM Current Yield %	September EOM % of Portfolio	Investment Date	Maturity Date	Term (mth)
*Medium Term Deposits*
RaboBank	A+	1,000,000	1,000,000	6.40%	0.94%	23/04/2012	24/04/2017	60
RaboBank	A+	1,000,000	1,000,000	5.90%	0.94%	4/06/2012	5/06/2017	60
BOQ	A-	1,000,000	1,000,000	6.30%	0.94%	22/08/2012	22/08/2017	60
ING Bank	A-	3,000,000	3,000,000	6.00%	2.81%	24/08/2012	24/08/2017	60
BOQ	A-	2,000,000	0	0.00%	0.00%	3/09/2013	2/09/2016	36
Hume Building Society	NR	1,009,123	1,009,123	4.10%	0.95%	21/08/2014	21/08/2017	36
Banana Coast CU	NR	1,000,000	1,000,000	4.25%	0.94%	3/06/2014	2/06/2017	36
ME Bank	BBB+	2,000,000	2,000,000	4.28%	1.88%	2/09/2014	2/09/2019	60
RaboBank	A+	1,000,000	1,000,000	3.70%	0.94%	30/09/2014	3/10/2016	24
Police Credit Union	NR	1,000,000	1,000,000	3.80%	0.94%	7/11/2014	7/11/2016	24
Auswide	BBB	1,000,096	1,000,096	3.75%	0.94%	27/11/2014	27/11/2016	24
Rabobank	A+	1,000,000	1,000,000	4.10%	0.94%	5/12/2014	5/12/2019	60
Beyond Bank	BBB+	990,000	990,000	3.70%	0.93%	4/03/2015	4/03/2018	36
Beyond Bank	BBB+	990,000	990,000	3.70%	0.93%	11/03/2015	11/03/2018	36
AMP	A+	2,000,000	2,000,000	3.10%	1.88%	2/06/2015	2/06/2017	24
AMP	A+	1,000,000	1,000,000	3.10%	0.94%	13/07/2015	13/07/2017	24
Bendigo-Adelaide	A-	1,000,000	1,000,000	2.80%	0.94%	1/09/2015	3/03/2017	18
Newcastle Permanent	BBB+	1,000,000	1,000,000	3.00%	0.94%	12/08/2016	12/08/2019	36
Rabobank	A+	1,000,000	1,000,000	3.20%	0.94%	25/08/2016	25/08/2021	60
Newcastle Permanent	BBB+	1,000,000	1,000,000	3.00%	0.94%	31/08/2016	30/08/2019	36
Police Credit Union	NR	0	1,000,000	2.90%	0.94%	8/09/2016	10/09/2018	24
*Total Medium Term Deposits*		24,989,219	23,989,219	4.19%	22.49%
*Floating Rate Notes - Senior Debt*
Macquarie Bank	A	3,034,959	3,029,601	BBSW + 290	2.84%	9/03/2012	9/03/2017	60
CUA	BBB+	1,008,130	1,002,871	BBSW + 130	0.94%	28/05/2014	20/03/2017	34
Bendigo-Adelaide	A-	1,004,318	998,642	BBSW + 93	0.94%	17/09/2014	17/09/2019	60
BOQ	A-	2,012,100	2,000,380	BBSW + 110	1.88%	5/08/2014	24/06/2019	58
BOQ	A-	997,766	999,283	BBSW + 107	0.94%	6/11/2014	6/11/2019	60
BOQ	A-	1,000,502	1,001,133	BBSW + 107	0.94%	10/11/2014	6/11/2019	60
ME Bank	BBB+	1,000,582	1,003,267	BBSW + 100	0.94%	17/11/2014	17/11/2017	36
ME Bank	BBB+	999,823	1,000,172	BBSW + 100	0.94%	17/11/2014	17/11/2017	36
Teachers Mutual	BBB+	996,712	999,424	BBSW + 105	0.94%	4/12/2014	4/12/2017	36
Newcastle Permanent	BBB+	999,360	1,002,300	BBSW + 110	0.94%	27/02/2015	27/02/2018	36
Macquarie Bank	A	1,995,442	2,002,698	BBSW + 110	1.88%	3/03/2015	3/03/2020	60
ANZ	AA-	751,717	753,417	BBSW + 82	0.71%	17/04/2015	17/04/2020	60
Heritage Bank	BBB+	1,000,080	1,002,090	BBSW + 115	0.94%	7/05/2015	7/05/2018	36
NAB	AA-	996,534	998,635	BBSW + 80	0.94%	3/06/2015	3/06/2020	60
Heritage Bank	BBB+	1,000,080	1,002,090	BBSW + 115	0.94%	9/06/2015	7/05/2018	35
CBA	AA-	1,004,663	1,006,659	BBSW + 90	0.94%	17/07/2015	17/07/2020	60
Westpac	AA-	1,004,080	1,005,760	BBSW + 90	0.94%	28/07/2015	28/07/2020	60
Bendigo-Adelaide	A-	1,002,140	1,005,110	BBSW + 110	0.94%	18/08/2015	18/08/2020	60
Credit Suisse	A	999,910	1,002,430	BBSW + 105	0.94%	24/08/2015	24/08/2018	36
Bendigo-Adelaide	A-	1,002,316	1,004,571	BBSW + 110	0.94%	28/09/2015	18/08/2020	59
Westpac	AA-	2,004,980	2,009,408	BBSW + 90	1.88%	30/09/2015	28/07/2020	58
Suncorp-Metway	A+	1,009,500	1,012,250	BBSW + 125	0.95%	20/10/2015	20/10/2020	60
Westpac	AA-	4,039,240	4,049,000	BBSW + 108	3.80%	28/10/2015	28/10/2020	60
AMP	A+	1,815,678	1,806,246	BBSW + 110	1.69%	11/12/2015	11/06/2019	42
Institution	Rating	Closing Balance Invested 31/08/2016 $	Closing Balance Invested 30/09/2016 $	September EOM Current Yield %	September EOM % of Portfolio	Investment Date	Maturity Date	Term (mth)
*Floating Rate Notes - Senior Debt continued*
CBA	AA-	1,012,909	1,015,742	BBSW + 115	0.95%	18/01/2016	18/01/2021	60
BOQ	A-	1,004,570	1,007,009	BBSW + 100	0.94%	5/02/2016	5/02/2018	24
Rabobank	A+	2,027,366	2,038,440	BBSW + 150	1.91%	4/03/2016	4/03/2021	60
Westpac	AA-	1,008,980	1,011,170	BBSW + 100	0.95%	8/03/2016	10/05/2019	38
Newcastle Permanent	BBB+	1,008,463	1,004,142	BBSW + 160	0.94%	22/03/2016	22/03/2019	36
CUA	BBB+	2,017,768	2,004,966	BBSW + 160	1.88%	1/04/2016	1/04/2019	36
ANZ	AA-	1,013,669	1,009,157	BBSW + 118	0.95%	7/04/2016	7/04/2021	60
CBA	AA-	1,010,132	1,012,393	BBSW + 98	0.95%	18/04/2016	18/07/2019	39
Suncorp-Metway	A+	1,014,051	1,016,004	BBSW + 138	0.95%	21/04/2016	12/04/2021	60
AMP	A+	1,009,571	1,012,267	BBSW + 135	0.95%	24/05/2016	24/05/2021	60
Westpac	AA-	1,015,890	1,010,000	BBSW + 117	0.95%	3/06/2016	3/06/2021	60
CBA	AA-	1,013,955	1,009,293	BBSW + 121	0.95%	12/07/2016	12/07/2021	60
ANZ	AA-	2,010,811	2,020,974	BBSW + 113	1.89%	16/08/2016	16/08/2021	60
*Total Floating Rate Notes - Senior Debt*		48,848,746	48,868,993		45.82%
*Managed Funds*
NSW Tcorp	NR	1,194,651	1,189,450	-0.44%	1.12%	17/03/2014	1/08/2021	88
*Total Managed Funds*		1,194,651	1,189,450	-0.44%	1.12%
TOTAL CASH ASSETS, CASH EQUIVALENTS & INVESTMENTS		106,533,260	106,662,272	4.53%	100.00%
LESS: RIVERINA REGIONAL LIBRARY (RRL) CASH		2,938,607	2,586,542
TOTAL WWCC CASH ASSETS, CASH EQUIVALENTS & INVESTMENTS		103,594,653	104,075,730

Council’s portfolio is dominated by Floating Rate Notes (FRN’s) at approximately 46% across a broad range of counterparties. Cash equates to 13% of Council’s portfolio with Term Deposits around 40% and growth funds around 1% of the portfolio.

Council’s investment portfolio is well diversified in complying assets across the entire credit spectrum. It is also well diversified from a rating perspective. Credit quality is diversified and is predominately invested amongst the investment grade ADIs (BBB- or higher), with a smaller allocation to unrated ADIs.

All investments are well within the defined Policy limits, as outlined in the Rating Allocation chart below:

Investment Portfolio Balance

Council’s investment portfolio balance has increased from the previous month’s balance, up from $103.6M to $104.1M. This increase is reflective of Council continuing to receive payments from the rates installment due at the end of August.

MONTHLY INVESTMENT MOVEMENTS

Redemptions/Sales - Council redeemed the following investment securities during September 2016:

Institution and Type

Amount

Investment

Term

Interest

Rate

Comments

MyState Term Deposit

$1M

7 months

3.07%

This term deposit was redeemed and reinvested into a one year term deposit with Bank of Sydney.

St George Power Saver

$3K

0.05%

This savings account with a balance of less than $3K is no longer required with the funds being transferred to Council’s NAB trading account.

New Investments - Council purchased the following investment securities during September 2016:

Institution and Type

Amount

Investment

Term

Interest

Rate

Comments

Police Credit Union Term Deposit

$1M

2 years

2.90%

The Police Credit Union rate of 2.90% compared favourably to the rest of the market.

Rollovers – Council rolled the following investment securities during September 2016:

Institution and Type

Amount

Investment

Term

Interest

Rate

Comments

Bank of Queensland Term Deposit

$2M

3 years

4.58%

This term deposit was a three year investment at 4.58% and was rolled at maturity into a seven month term deposit at 2.75%. This investment term was chosen to ensure a maturity gap was filled.

Bank of Sydney Term Deposit

$1M

9 months

3.15%

This term deposit was a nine months investment at 3.15% and was rolled at maturity into a one year term deposit at 2.75%. In addition to this $1M rollover, an additional $1M was also included with this investment. This investment term was chosen to ensure a maturity gap was filled.

MONTHLY PERFORMANCE

Interest/growth/capital gains for the month totaled $397,272 which compares favourably with the budget for the period of $257,250 – out performing budget for the September month by $140,022. This is attributable to continued strong growth of Council’s Floating Rate Note portfolio. This continues a strong seven month period from March to September for Council’s portfolio, outperforming budget for the period by $626,514. This follows a period of lower than budgeted investment returns for January and February 2016.

It should be noted that the capital market value of these investments will fluctuate from month to month and that Council continues to receive the coupon payments and the face value of the investment security when sold or at maturity.

Council’s portfolio performance continues to be anchored by the longer-dated deposits in the portfolio, particularly those locked in above 4% yields. It is to be noted however that the average deposit yield will inevitably fall as some of the longer-dated deposits mature within the next year.

In comparison to the AusBond Bank Bill Index* (+2.19%pa), Council’s investment portfolio in total returned 4.53% for September. Short term deposits returned 2.88%. These funds are utilised for daily cash flow management and need to be available to meet operating and contractual payments as they come due.

* The AusBond Bank Bill Index is the leading benchmark for the Australian fixed income market. It is interpolated from the RBA Cash rate, 1 month and 3 month Bank Bill Swap rates.

Cash & Investments Budget Review Statement

I hereby certify that all of the above investments have been made in accordance with the provision of Section 625 of the Local Government Act 1993 and the regulations there under, and in accordance with the WWCC Investments Policy adopted by Council on 26 August 2013.

The Cash at Bank amount has also been reconciled to Council's physical Bank Statements.

Report by Responsible Accounting Officer

The following statement is made in accordance with Clause 203(2) of the Local Government (General) Regulations 2005. It is my opinion that the Quarterly Budget Review Statement for Wagga Wagga City Council for the quarter ended 30 September 2016 indicates that Council’s projected financial position at 30 June 2017 will be satisfactory at year end, having regard to the projected estimates of income and expenditure and the original budgeted income and expenditure.

Carolyn Rodney

Responsible Accounting Officer

Budget

The forecast full year budget result to 30 September 2016 is a ($283K) deficit.

Policy

Investments are reported in accordance with POL 075 Investment Policy.

Budget Variations are reported in accordance with POL 052 Budget Policy.

Impact on Public Utilities

N/A

Link to Strategic Plan

1. We are an engaged and involved community

1.1 We are a community that is informed and involved in decisions impacting us

QBL Analysis

	Positive	Negative
Social	N/A	N/A
Environmental	N/A	N/A
Economic	N/A	N/A
Governance	The preparation of the monthly financial report provides for the timely reporting on investments and budget performance year-to-date.	N/A

Risk Management and Work Health and Safety Issues for Council

No specific issues identified.

Internal / External Consultation

All relevant areas within Council have consulted with the Finance Division in regards to the budget variations listed in this report.

The Finance Division has consulted with relevant external parties to confirm Council’s investment portfolio balances.

Positive

Negative

Social

Meeting community wellbeing outcomes as per Council’s strategic plans, particularly the Recreation and Open Space, Social and Cultural Plans.

N/A

Environmental

Meeting Environmental outcomes as per Council’s open space plans of management.

N/A

Economic

Improved liveability of the city through the creation of recreation.

N/A

Governance

Increased transparency is the management of Council’s playground assets.

N/A

Positive

Negative

Social

Skateparks provide youth with increased opportunities to interact and participate in unstructured recreational activities.

N/A

Environmental

N/A

Economic

N/A

Governance

That Council engages with the community to ensure transparency and accountability in its decision making.

N/A

Positive

Negative

Social

The new amenities will provide improved facilities for the community.

N/A

Environmental

N/A

Economic

N/A

Governance

Procurement for construction of the project will be in accordance with the Local Government Act.

N/A

Positive

Negative

Social

Meeting community wellbeing outcomes as per Council’s strategic plans, particularly the Wagga Wagga Playground Strategy.

N/A

Environmental

Meeting Environmental outcomes as per Council’s open space plans of management.

N/A

Economic

Improved liveability of the city through the creation of recreation.

N/A

Governance

N/A

Positive

Negative

Social

The program aims to create sustainable communities and celebrate the achievements.

N/A

Environmental

The program recognises outstanding environmental initiatives implemented by local government authorities, schools, businesses and community groups.

N/A

Economic

Recognition through awards may result in increased visitation to the City.

N/A

Governance

Building partnerships and relationships with community and regional Councils.

N/A

Route	Key Considerations
Forest Hill	· Links Forest Hill to the city · Follows the existing rail corridor · Consistent with current Rail Trail proposal · Adjacent landowners have previously raised concerns regarding the use of the rail corridor · Rail corridor is still active
Kapooka	· Links Kapooka Army Base to the city · Crosses under Olympic Highway at Kapooka Bridge · Will be required to cross Redhill Road · Will pass through Silvalite bush reserve · Crosses Sturt Highway adjacent to Flowerdale Lagoon · Crosses Olympic highway adjacent to Kincaid Street
Central	· Links Bourkelands to the city · Proposes change of use of existing travel lanes on Bourke Street between Red Hill Road and Brookong Avenue · Crosses the Sturt Highway
Northern	· Links Charles Sturt University and Northern Growth Area to the city · Crosses the Olympic Highway adjacent Old Narrandera Road · Proposes to cross the Murrumbidgee River via a pedestrian and cycling bridge
Southern	· Links Lake Albert to the city · Utilises existing cycleway route on Kooringal road · Crosses the Sturt highway at existing Marshalls Creek underpass

Project Name & Component	Existing Budget	Expenditure to Date	Proposed Budget Variation	Effect on LTFP
Active Travel Plan	$88,000	$88,000	0	No
Council in-kind staffing costs	$29,000	$29,000	0	No
TOTALS	$117,000	$117,000	0	No

1 ⇩.	Active Travel Plan - Provided under separate cover.
2 .	Community Consultation Outcomes - Provided under separate cover.
3 ⇩.	ATP - Design Principles and Route Analysis - Provided under separate cover.

Proposed Budget Variation – Long Term Financial Plan
Description	17/18	18/19	19/20	20/21	21/22	22/23	23/24	24/25	25/26	26/27
Additional maintenance required at Uranquinty park & Oval maintenance budget	$1,920	$1,987	$2,056	$2,129	$2,223	$2,280	$2,360	$2,443	$2,528	$2,616
TOTAL BUDGET VARIATION	$1,920	$1,987	$2,056	$2,129	$2,223	$2,280	$2,360	$2,443	$2,528	$2,616

1 ⇩.	Uranquinty Skate Park proposal
2 ⇩.	Quinty Skate Park Committee meeting minutes

1 ⇩.	Collingullie Oval Club House Design
2 ⇩.	Collingullie Oval Amenities Letter to WWCC
3 ⇩.	WWCC - Collingullie Oval Amenities Cost Estimate - D'Anvers Consulting 3-3-16

Total Budget Funding Sources	Existing Budget ($)	Proposed Budget Variation ($)	TOTAL PROPOSED BUDGET ($)
Playground Equipment Replacement as per schedule	($100,000)	$0	($100,000)
Northcott	($10,000)	$0	($10,000)
NSW Government	($75,000)	$0	($75,000)
Touched by Olivia Foundation	$0	($100,000)	($100,000)
TOTAL BUDGETED AMOUNT FOR PROJECT			$285,000

1 ⇩.	Bolton Park Playground location
2 ⇩.	Bolton Park Playground Stage 1
3 ⇩.	Touched By Olivia Foundation Proposal
4 ⇩.	Memorandum of Understanding