Ordinary Meeting of Council

 

 

 

To be held on
Monday 22 May 2017

AT 6.00pm

 

 

 

Cnr Baylis and Morrow Streets,
Wagga Wagga NSW 2650
PO Box 20, Wagga Wagga

 

Phone: 1300 292 442
Fax: 02 6926 9199
Website: www.wagga.nsw.gov.au

In pursuance of the provisions of the Local Government Act, 1993 and the Regulations there under, notice is hereby given that an Ordinary Meeting of the Council of the City of Wagga Wagga will be held in the Council Chamber, Civic Centre, Corner Baylis and Morrow Streets, Wagga Wagga, on Monday 22 May 2017 at 6.00pm.

 

Council live streams video and audio of Council meetings. Members of the public are advised that their voice and/or image may form part of the webcast.

 

 

 

 

 

Mr Robert Knight

Acting General Manager

 

 

 

 

 

 

 

QUORUM

The quorum for a meeting of the Council is a majority of the Councillors of the Council who hold office for the time being who are eligible to vote at the meeting.

COUNCIL MEETING ROOM

 

 

 

 

Ordinary Meeting of Council AGENDA AND BUSINESS PAPER

Monday 22 May 2017

ORDER OF BUSINESS:

CLAUSE               PRECIS                                                                                            PAGE

PRAYER                                                                                                                       3

ACKNOWLEDGEMENT OF COUNTRY                                                                          3

APOLOGIES                                                                                                                 3

CONFIRMATIONS OF MINUTES

CM-1           Ordinary Council Meeting - 24 April 2017                                      3

DECLARATIONS OF INTEREST                                                                                    3

Motions Of Which Due Notice Has Been Given

NOM-1         Notice of Motion - Youth council/advisory group                   4

NOM-2         NOTICE OF MOTION - Regional Rail Shuttle Proposal                6

Councillor Report

CR-1            COUNCILLOR REPORT - TRAVELLING STOCK ROUTE BETWEEN GANMURRA ROAD AND MUNDOWEY LANE                                                               12

Reports from Staff

RP-1            DA17/0204 - 20M X 9M DETACHED SHED. 90 MANUKA ROAD, LAKE ALBERT, LOT 1 DP 1127328                                                                                   14

RP-2            DA17/0205 - 4 BEDROOM DWELLING, SHED AND VARIATION TO BUILDING ENVELOPE. 124 RIVERVIEW DRIVE, MOORONG, LOT 31 DP1149070     22

RP-3            DA17/0116 - Demolition of existing garage. Construct a double garage and carport. Relocation and extension of existing shed - 36 Garland St, TURVEY PARK, Lot 10 DP 6801                                 31

RP-4            RESPONSES TO QUESTIONS / BUSINESS WITH NOTICE                       38

RP-5            Taste Riverina 2017 Contribution for The City of Wagga Wagga   40

RP-6            Major Events Sponsorship Requests                                         45

RP-7            Lights4Lake Request for Additional Costs                              60

RP-8            Draft Wagga Wagga Integrated Transport Strategy and Implementation Plan 2040                                                                66

RP-9            Compulsory Acquisition of Maxwell Fire Brigade Station Site    73

RP-10          CANCELLATION OF RIGHT OF CARRIAGEWAY - LOT 2 DP 1138428 - STURT STREET, WAGGA WAGGA                                                                      76

RP-11          2016/17 Loan Facility                                                                          79

 

RP-12          Financial Performance Report as at 30 April 2017                  84

RP-13          Outstanding Debtors Amounts Unrecoverable - Proposed Write Off List                                                                                                  98

RP-14          Oura Village - Request for Sewer Upgrade Subsidy            101

RP-15          Loan Waiver request - Wagga Rugby League                          107

RP-16          POL 100 Fraud and Corruption Prevention Policy                 113

RP-17          NATIONAL GENERAL ASSEMBLY - VOTING DELEGATE                      124  

Committee Minutes

M-1              Audit and Risk Committee Minutes - 6 April 2017                      126   

QUESTIONS/BUSINESS WITH NOTICE                                                                     135

Confidential Reports

CONF-1       RFQ 2017-523 SUPPLY OF TWO WATER TANK UNITS                          136

CONF-2       RFQ 2017-526 SUPPLY OF THREE DRUM ROLLERS                             137

CONF-3       MAIN LEVEE BANK UPGRADE - EASEMENT ACQUISITIONS - STAGE 1 138

CONF-4       Wagga Wagga Main City Levee - Stage 1 Construction        139

CONF-5       PROPOSED AIRPORT SUB-LEASE AGREEMENT WITH MIDDLETON   140

CONF-6       Airport Sub-Lease to Bromley and Rwek Pty Ltd                  141

CONF-7       VARIATION OF LEASE - OASIS CAFE                                                   142  

 

PRAYER

 

 

ACKNOWLEDGEMENT OF COUNTRY

 

 

APOLOGIES

 

 

Confirmation of Minutes

CM-1              Ordinary Council Meeting - 24 April 2017       

 

Recommendation That the Minutes of the proceedings of the Ordinary Council Meeting held on 24 April 2017 be confirmed as a true and accurate record.

 

Attachments  

 

1⇩.

Ordinary Council Meeting - Minutes - 24 April 2017

143

 

 

 

DECLARATIONS OF INTEREST

 

 

 

Motions Of Which Due Notice Has Been Given

NOM-1           Notice of Motion - Youth council/advisory group

Author:          Councillor Dan Hayes

 

Analysis:

This Notice of Motion is being presented to Council to progress with organising an opportunity for youth in Wagga Wagga to discuss an appropriate model for a potential youth council/advisory committee.

 

 

Recommendation That Council staff bring forward a report on a process to host an opportunity for young people in the City of Wagga Wagga, so that young people can provide feedback on appropriate model(s) for youth engagement to Council planning and decision making.

 

·        As of 2015 those aged under 25 make up approximately 1/3 of the population of Wagga Wagga according to the ABS.

 

·        Wagga has a high non-resident youth population in regards to the University and Defence.

 

·        Youth representation on Council committees and as elected officials is unlikely to reflect this in a meaningful way

 

·        A youth council/advisory committee allows the opportunity for young people to be given a voice in the community and a formal mechanism to provide insight and input into the city and council decisions.

 

·        As part of the hosted event for young people a range of platforms and options will be discussed with youth for their feedback e.g. traditional models of Youth Councils/ advisory committees through to other platforms like an online youth forum, targeted consultation with all school representatives, targeted consultation through youth events.

 

N/A

Code of Meeting Practice

Community Leadership and Collaboration

Objective: We are informed and involved in decision making

Outcome: Everyone in our community feels they have been heard and understood

 

No specific issues identified.

N/A

  

 

 

 

NOM-2           NOTICE OF MOTION - Regional Rail Shuttle Proposal

Author:          Councillor Vanessa Keenan

 

Analysis:

This Notice of Motion is being presented to Council following the independent release of a discussion paper that calls for the investigation of the feasibility of creating commuter rail connections between Wagga Wagga and Albury.

 

 

Recommendation That Council: a       write to Mr Daryl Maguire MP, Member for Wagga Wagga, the Honourable Andrew Constance MP, NSW Minister for Transport and Infrastructure, the Honourable Gladys Berejiklian MP, NSW Premier, Mr Luke Foley MP, the Leader of the Opposition and Ms Jodi McKay MP, the Shadow Minister for Transport calling for the investigation of new and improved regional rail connections for Wagga Wagga b       review any response that may be forthcoming and assess any implications for Council that are consistent with its adopted plans c        otherwise refer the matter to Transport NSW

 

·        Existing connections are inadequate and are designed to link to Melbourne and Sydney, not the communities in between.

 

·        Significant economic benefits can be gained for the wider Riverina region by improving intraregional connectivity.

 

·        The burden on road networks can be eased and subsequently safety can be improved, freeing up state funds for use on other road networks in our City and region.

 

·        Improved access to specialist medical services for the community.

 

·        Greater employment and education opportunities for residents.

 

·        More opportunities to attract decentralised Government agencies to Wagga Wagga.

 

·        Improved productivity gains for business through decreased travel time and ability to work whilst commuting.

 

N/A

Code of Meeting Practice

 

Growing Economy

Objective: We are a Regional Capital

Outcome: We have complete and accessible transport networks, building infrastructure, improving road travel reliability, ensure on-time running for public transport

 

No specific issues identified.

N/A

 

 

1⇩.

Discussion Paper - Feasibility Investigation Albury - Wagga Regional Rail Shuttle Service

 

 

 

 

 

Councillor Report

CR-1              COUNCILLOR REPORT - TRAVELLING STOCK ROUTE BETWEEN GANMURRA ROAD AND MUNDOWEY LANE

Author:          Councillor Paul Funnell

 

Recommendation That Council write to the Local Land Services seeking their support on the closure of the travelling stock route between Ganmurra Road and Mundowey Lane on the Old Narrandera Road, for the months of October to April (inclusive) for a period of five years due to conditions set out in the body of this report.

 

N/A

Code of Meeting Practice

The Environment

Objective: We create a sustainable environment for future generations

Outcome: We minimise our impact on the environment

 

As outlined in the body of the report.

I have received representations from members of the community and have also discussed this with staff.

 

  

 

  

 

Reports from Staff

RP-1                             DA17/0204 - 20M X 9M DETACHED SHED. 90 MANUKA ROAD, LAKE ALBERT, LOT 1 DP 1127328

Author:                        Sam Robins

Sector Manager:       Paul Somerville

         

Analysis:

The report is for a development application and is presented to Council for decision. The application has been referred to Council as:   The application seeks to vary one numeric control of the Wagga Wagga Development Control Plan 2010 (DCP) by greater than 10%.

 

 

Recommendation That Council approve DA17/0204 for a detached 20m x 9m shed at 90 Manuka Road, Lake Albert, subject to the conditions outlined in the Section 79C Assessment Report for DA17/0204.

 

 

Applicant	AJ Hallcroft
Owner	AJ Hallcroft
Development Cost	$30,000
Development Description	The application is for the construction of a detached 20m x 9m colourbond shed to be located to the rear of the proposed dwelling and converted outbuilding and within the designated building envelope.

 

Key Issues

 

·   Non-compliance with Control C4 under Section 9.4.4 of the Wagga Wagga Development Control Plan 2010 by greater than 10% variation from this control. The cumulative floor area of the sheds on site will exceed the permitted 300m² by 42%, totalling 426m².

 

Assessment

 

The proposed shed is compatible with the surrounding development which consists in the main of large single storey detached dwellings with large outbuildings.

 

The building has been well located on site to minimise any impacts of the character of the area and the amenity of neighbouring properties.

 

Appropriate justification for the variation has been lodged and Council staff are supportive of a variation as the shed would be consistent with the objectives relevant to such an application and would not unreasonably impact on the amenity of the neighbouring properties.

 

Reasons for Approval

 

·   The proposed shed would be consistent with the relevant objectives for such a development.

 

·   The shed does not unreasonably impact on the character of the area or the amenity of the neighbouring property.

 

Site Location

 

The site, being Lot 1 DP 1127328, 90 Manuka Road, Lake Albert is located on the western side of the street at its southern end.

 

The locality is a large lot residential area. The block is part of a 7 lot subdivision approved in 2006. The lot measures 1.10ha and currently contains a dwelling. The site is relatively flat and void of substantial vegetation.

 

Both neighbouring lots have single storey dwellings with large outbuildings located on them.

 

The site is constrained by a building envelope which all structures have been located within and an easement for transmission lines to the rear of the site that is outside of the building envelope.

 

The site is not considered bush fire or flood prone.

 

 

N/A

Wagga Wagga Local Environmental Plan 2010 (LEP)

Wagga Wagga Development Control Plan 2010 (DCP)

 

The Environment

Objective: Create and maintain a functional, attractive and health promoting built environment

Outcome: We create an attractive City

 

An approval of the application raises no risk management issue and will not create an undesirable precedent. Refusal of the application may result in an appeal process in the Land and Environment Court which will have to be defended by Council. The reasons for refusal will have to be justified and withstand scrutiny and cross examination in Court.

See attached s79C report for details of all consultation.

 

 

1⇩.	DA17/0204 - Section 79C Report - Provided under separate cover.
2⇩.	DA17/0204 - Site Plan - Provided under separate cover.
3⇩.	DA17/0204 - Shed Details - Provided under separate cover.
4⇩.	DA17/0204 - Statement of Environmental Effects - Provided under separate cover.
5⇩.	DA17/0204 - Variation Justification - Provided under separate cover.

 

 

 

 

RP-2                             DA17/0205 - 4 BEDROOM DWELLING, SHED AND VARIATION TO BUILDING ENVELOPE. 124 RIVERVIEW DRIVE, MOORONG, LOT 31 DP1149070

Author:                        Sam Robins

Sector Manager:       Paul Somerville

         

Analysis:

The report is for a development application and is presented to Council for decision. The application has been referred to Council as: The application seeks to vary two numeric controls of the Wagga Wagga Development Control Plan 2010 (DCP) by greater than 10%.

 

 

Recommendation That Council approve DA17/0205 for a 4 bedroom dwelling, shed and variation to building envelope at 124 Riverview Drive, Moorong subject to the conditions outlined in the Section 79C Assessment Report for DA17/0205.

 

 

Applicant	Kristan Somerville
Owner	Brett Somerville & Kristan Somerville
Development Cost	$700,000
Development Description	The application is for the construction of a 4 bedroom detached single storey dwelling with detached pitched roof 7.5m x 11m shed and variation to the building envelope along the southern and eastern boundaries.

 

Key Issues

·        Non-compliance with Control C3 under Section 9.3.6 of the Wagga Wagga Development Control Plan 2010. The front setback is 70m and therefore does not comply with this control. A variation of 40% is requested. The variation is greater than 10% and therefore in accordance with Section 1.11 of the DCP must be determined by Council.

 

·        Non-compliance with Control C6 under Section 9.4.4 of the Wagga Wagga Development Control Plan 2010. The maximum height of the outbuilding is 5.6m and therefore does not comply with this control. A variation of 16.6% is proposed and therefore the application has to be determined by Council under the provisions of Section 1.11 of the DCP.

 

 

Assessment

 

The proposed dwelling and shed are compatible with the surrounding development which consists mainly of large single storey detached dwellings with large outbuildings with varied front setbacks.

 

The buildings have been well located on site to minimise any impacts of the character of the area and the amenity of neighbouring properties.

 

Appropriate justification for the variations has been lodged and Council staff are supportive of the variations as the buildings would be consistent with the objectives relevant to such an application and would not unreasonably impact on the amenity of the neighbouring properties.

 

Reasons for Approval

 

·   The proposed buildings would be consistent with the relevant objectives for such a development.

 

·   The buildings and the amendment to the building envelope do not unreasonably impact on the character of the area or the amenity of the neighbouring property.

 

Site Location

The site, being Lot 31 DP 1149070, 124 Riverview Drive is located on the eastern side of Riverview Drive at the north-western end of this final stage of the Riverview Estate subdivision.

 

The locality is a large lot residential area. The block is part of a subdivision approved under DA03/0424. The lot measures 1.17 ha and is currently vacant. The site has a relatively flat section to the rear of the block where the buildings have been located with a steep slope to the street from about 70m into the block. The fall across the building site is approximately 1.5m from south to north.

 

The site was previously part of a quarry and therefore has been heavily altered during that time from its original landscape.

 

The site is bushfire prone and there are several larger trees to the rear of the site that form part of a remnant woodland in the locality. All of these areas were taken into consideration during the subdivision of the land and the building envelope for the site takes these into consideration and is clear of these areas. The amended building envelope remains consistent with this original assessment.

 

All adjoining lots have been developed with large dwellings and outbuildings.

 

 

N/A

Wagga Wagga Local Environmental Plan 2010 (LEP)

Wagga Wagga Development Control Plan 2010 (DCP)

 

The Environment

Objective: Create and maintain a functional, attractive and health promoting built environment

Outcome: We create an attractive City

 

An approval of the application raises no risk management issue and will not create an undesirable precedent. Refusal of the application may result in an appeal process in the Land and Environment Court which will have to be defended by Council. The reasons for refusal will have to be justified and withstand scrutiny and cross examination in Court.

See attached s79C report for details of all consultation.

 

 

1⇩.	DA17-0205 - Section 79C Report - Provided under separate cover.
2⇩.	DA17-0205 - Plans - Provided under separate cover.
3⇩.	DA17-0205 - Statement of Environmental Effects - Provided under separate cover.
4⇩.	DA17-0205 - Building Envelope Variation Report - Provided under separate cover.
5⇩.	DA17-0205 - Shed Height Variation Justification - Provided under separate cover.

 

 

 

 

RP-3                             DA17/0116 - Demolition of existing garage. Construct a double garage and carport. Relocation and extension of existing shed - 36 Garland St, TURVEY PARK, Lot 10 DP 6801

Author:                        Johanna Duck

Sector Manager:       Paul Somerville

         

Analysis:

The report is for a development application and is presented to Council for decision. The application has been referred to Council as: The application seeks to vary two numeric controls of the Wagga Wagga Development Control Plan 2010 (DCP) by greater than 10%.

 

 

Recommendation That Council approve DA17/0116 for Demolition of existing garage, Construction of a double garage and carport, and relocation and extension of existing shed; at 36 Garland Street, Turvey Park, subject to the conditions outlined in the Section 79C Assessment Report for DA17/0116.

 

 

Applicant	KC Wooden
Owner	K Wooden and J Wooden
Development Cost	$45000
Development Description	Demolish existing garage. Construction of a double garage and carport. Relocation and extension of existing shed.

 

Key Issues

 

·        Non-compliance with Controls C3 and C4 under Section 9.4.4 of the Wagga Wagga Development Control Plan 2010 by greater than 10% variation from this control. The total floor area for the garage and the cumulative floor area of all the outbuildings on site (garage, carport and shed) will exceed the permitted 8% of the total area of the lot. The garage has dimensions of 6.8m x 8.46m with a total area 57.528m2 which is 10.58% of the lot exceeding the maximum area permitted. The total cumulative floor area of the garage, carport and shed exceed the maximum area permitted, having a total area greater than 8% of the lot. The total area is 110.928m2 and is equal to 20.4% of the lot.

 

Assessment

 

The development is reasonable for the following reasons:

 

·        The proposed changes are acceptable and continue the predominant rhythm and form of the street. The applicant proposed the use of architectural details including the dutch gable roof detail, the use of corrugated metal for the roof material, the use of single roller doors and the use of face brick to complement the dwelling on the lot and other dwellings in the immediate area and to create an appealing structure which enhances the streetscape.

 

·        The development is consistent with the existing character of Jarrick Street which for the dual frontage lots acts as a service access, similar to a laneway, with the north side of Jarrick Street dominated by garages and rear fences. The proposed development is of a similar size (area) to eight other outbuildings/grouping of outbuildings located on lots along Jarrick Street.

 

·        The different structures allow for storage of various items for the occupants of the dwelling.

 

·        The development allows ample room for lawn and garden (private open space) between the garage and the house.

 

·        The development results in the proposed garage being the only new area of outbuilding on the lot because the carport will be replacing the existing garage, and the existing garden shed is retained.

 

·        The bulk and scale of the outbuildings presented to Jarrick Street is broken up with the different forms of the open flat roofed carport and dutch gable garage.

 

·        The site slopes down from Jarrick Street to Garland Street minimising the ability of pedestrians to view the total of the structure, which will be screened on the west side by the adjoining outbuildings of a similar scale and by the established vegetation along Jarrick Street.

 

·        The development complies with the intent of the objectives of section 9.4.4 because the garage does not impact the Garland Street frontage and the development is in the desired location along Jarrick Street ensuring that the development does not dominate the main street frontage.

 

As such the variation is supported by Council Staff and the development is recommended for approval.

 

Reasons for Approval

 

·        The proposed outbuildings would be consistent with the relevant objectives for such a development.

 

·        The proposed outbuildings would not unreasonably impact on the character of the area or the amenity of the neighbouring properties.

 

·        1 submission was received however this related to stormwater run-off and not the size of the outbuildings. The impacts of stormwater will be controlled via conditions of consent.

 

Site Location

 

·        The site is identified as 36 Garland Street, Turvey Park, Lot 10 DP 6801. The site is located on the south side of Garland Street, the eighth lot west of the intersection with Mitchelmore Street. The dwelling fronts onto Garland Street and the garage is accessed off Jarrick Street, which acts as a service lane for all of the dwellings that front Garland Street within this group of lots.

 

·        On the opposite side of Jarrick Street are standard lots with the Dwellings fronting onto, and driveway access provided from, Jarrick Street. The dwellings in the immediate area are mostly single storey older style architecture similar to areas of Central Wagga Wagga.

 

·        The lot is a sloping site with a fall of approximately 3-4m from the Jarrick Street boundary down to the Garland Street boundary.

 

 

N/A

Wagga Wagga Local Environmental Plan 2010 (LEP)

Wagga Wagga Development Control Plan 2010 (DCP)

 

The Environment

Objective: Create and maintain a functional, attractive and health promoting built environment

Outcome: We create an attractive City

 

An approval of the application raises no risk management issue and will not create an undesirable precedent. Refusal of the application may result in an appeal process in the Land and Environment Court which will have to be defended by Council. The reasons for refusal will have to be justified and withstand scrutiny and cross examination in Court.

See attached s79C report for details of all consultation.

 

 

1⇩.	DA17/0116 - Section 79C Report - Provided under separate cover.
2⇩.	DA17/0116 - Photos of exisitng garages along Jarrick Street - Provided under separate cover.
3⇩.	DA17/0116 - Plans - Provided under separate cover.

 

 

 

RP-4                             RESPONSES TO QUESTIONS / BUSINESS WITH NOTICE

Author:                                           Ingrid Hensley

Acting General Manager:         Robert Knight

         

Analysis:

The following are Responses to Questions/Business with Notice arising from the Ordinary Council meeting on 24 April 2017.

 

 

Recommendation That Council receive and note the report outlining responses to Questions/Business with Notice.

 

The Report below addresses the Questions/Business with Notice raised during the Ordinary Council Meeting held Monday, 24 April 2017.

 

1.         Councillor D Hayes requested information on the length of stay available for campers at Oura Beach and the process in place to monitor and enforce timeframes?

 

Response provided by the Community Sector

 

There are no time limits placed on these reserves. The area is a Crown reserve that is gazetted for camping, without any restrictions.

 

2       Councillors V Keenan, R Kendall and K Pascoe requested information on aesthetics and urban design for the approaches to the City and throughout the City including:

 

·        Existing processes and future strategies

·        Design and maintenance of roundabouts including weed control

·        Communication with RMS regarding maintenance schedules on presentation of highway and approaches to the City

 

Response provided by Commercial Operations and Media and Communications

 

For roundabouts that are responsibility of Council, Parks undertakes maintenance of roundabouts that contain vegetation and this includes a regular weed control program. Existing processes includes maintenance of roundabouts to coincide with key events.

 

Council does not maintain RMS median strips or roundabouts and they undertake their own independent maintenance program and design.

 

City of Wagga Wagga staff acknowledges the role City entrances have in presenting an appealing representation of approaches to the City. In recognising the improvements that can be made, staff are currently developing potential visual concepts aimed at improving the image and presentation of the City, incorporating signage concept designs and visual screening. Currently no budget is available for any works so Councillors will be engaged over the coming months to discuss concepts and potential opportunities.

N/A

Code of Meeting Practice

 

Community Leadership and Collaboration

Objective: We have strong leadership

Outcome: We are accountable and transparent

 

No specific issues identified.

N/A

 

  

 

 

 

RP-5                             Taste Riverina 2017 Contribution for The City of Wagga Wagga

Author:                        Madeleine Scully

Sector Manager:       Janice Summerhayes

         

Analysis:

Council is in receipt of a request for an additional $2,500 from Riverina Regional Tourism (RRT) for participation in the Taste Riverina Festival. This is in addition to the $5,000 already endorsed at the March 2017 Council meeting.   The base fee for Taste Riverina covers coordination and marketing costs for the festival, including all advertising and promotions. This base fee is calculated based on the population of the Local Government Area and for the City of Wagga Wagga it was set at $5,000 for 2017. The additional contribution ‘non member supplement’ represents 50% of the base fee and is a supplement for non RRT member Councils. This additional fee contributes towards the other costs required to run the festival that come under RRT’s operational budget.

 

 

Recommendation That Council not approve an additional contribution of $2,500 to the 2017 Taste Riverina Festival.

 

Change and increase of fee request by RRT for City of Wagga Wagga participation in the 2017 Taste Festival. This request occurred after Council’s formal resolution on March 27 2017 meeting. The resolution was in response to RRT’s request that this decision by Council be made by a deadline of 4 April 2017 which Council met.

 

·        The Taste budget was subsequently presented on 6 April 2017 with City of Wagga Wagga’s contribution set at $5,000, this budget shows the festival to be self-supporting with a forecast profit of $380.

·        Presentation of the 2017 Taste budget occurred after City of Wagga Wagga had notified RRT of its intention to become a non-member Council.  At no time during the meeting held on 6 April 2017 were additional funds or expenditure identified.

·        A request from RRT was then received via phone on the 7 April to increase the City of Wagga Wagga’s contribution by 50% of the base fee.

·        A request by staff to RRT was sent for a breakdown of the 2017 Taste Festival expenses that are expected to be covered by the additional contribution requested by RRT. A letter was received from RRT on 13 April 2017 (as attached) and included the following costs - public liability insurance, association liability insurance, audit fee and accountancy costs, bank fees, Department of Fair Trading fees, legal fees, communication/postage costs and a contribution of staff time spent on administrative tasks.

 

The City of Wagga Wagga has in the past and will again in 2017 contribute significantly with in-kind support toward the 2017 Taste festival. This in kind support includes advertising through our website with a reach of 30,000, inclusion in the What’s On guide which is distributed to 20,000 people and also through social media campaigns with a following of 10,000. In addition, regional advertising will be offered including external online blogs and websites, promotion through Council News and display space at the Visitor Information Centre. This in-kind contribution is estimated to be in excess of $2,500 annually.

 

The additional fee request is viewed to contribute towards the other operational costs that come under RRT’s operational budget and therefore, is considered not appropriate given we are a non-member and not required to contribute to this organisation’s operational budget.

 

The Visitor Economy Product Development budget for the 2017/18 financial year is $20,472. Council endorsed at the Ordinary March Council Meeting 2017 for $5,000 to be committed to Taste Riverina 2017 during the 2017/18 financial year, with the remaining $22,000 to be invested in tourism initiatives aligned to the new Destination Management Plan to be undertaken by Destination Riverina Murray in consultation with City of Wagga Wagga.

N/A

 

Growing Economy

Objective: We are a tourist destination

Outcome: We promote our city and villages

 

This is considered low risk as three local businesses are currently represented on the 2017 Taste Festival committee being Best Western Plus Charles Sturt Suites and Apartments, Borambola Wines and Knights Meats.

Riverina Regional Tourism

 

 

1⇩.	Letter from Riverina Regional Tourism re: 2017 Taste Riverina Festival Contribution
2⇩.	2017 Taste Festival Budget Draft

 

 

 

 

 

RP-6                             Major Events Sponsorship Requests

Author:                        Fiona Hamilton

Sector Manager:       Janice Summerhayes

         

Analysis:

Council is in receipt of a Major Sponsorship application from Crow Crow Productions for a new feature film ‘The Merger’ to be produced in Wagga in 2017.   Assessment of the application has been undertaken and a recommendation to fund the film for $20,000 is made in line with the Major Events Sponsorship Policy.

 

 

Recommendation That Council: a       authorise the General Manager or their delegate to enter into a one year event support agreement up to an amount of $20,000 with Crow Crow Productions to sponsor the filming of ‘The Merger’ film i         $12,000 will be committed from the 2016/17 Major Events Sponsorship budget to assist the film producer with pre production costs to be incurred in location scouting, accommodation and logistics ii        The remaining $8,000 to be committed from the 2017/18 Major Events Sponsorship budget subject to film completion.

 

The film has the potential for significant State, National and/or International exposure, likely to result in increased visitation for the City.

 

After the success of Crow Crow’s Production’s first feature film ‘Backyard Ashes’, the City of Wagga Wagga and the City of Wagga Wagga’s logo appeared nationally where the film was screened in over 70 cinemas. It is intended that this film will be distributed again across cinemas nationwide as well as on all major digital platforms such as Netflix, iTunes, Google Play, Telstra Movies, Foxtel, Jetstar, Qantas and Cruise Ships. ‘The Merger’ like ‘Backyard Ashes’ is expected to again gain coverage over various news programs, breakfast shows and national newspapers further showcasing the City of Wagga Wagga. “The Merger” is already set to appear at the Melbourne International Film Festival, The Adelaide Film Festival and the Sydney Film Festival.

 

The film will be launched in Wagga Wagga with a red carpet premiere event to coincide with the opening weekend scheduled for mid-2018. Major sponsorship of this project will include the following:

 

·        City of Wagga Wagga to be named in films opening credits along with their logo in the opening slides.

·        Prominent use of City of Wagga Wagga’s branding on all Crow Crow Production’s social media pages and websites as a sponsor.

·        City of Wagga Wagga’s logo on the media banners during the films red carpet premiere to feature in the background of all major media interviews during the event.

·        City of Wagga Wagga to be mentioned prolifically throughout all media interviews and engagements.

·        Guaranteed World Premiere of the film in Wagga Wagga attended by key cast and crew and members of the national arts and entertainment media Logo placement in the final credit roll of the film. 


·        City of Wagga Wagga presence at Q&A sessions during the opening weekend of the film’s release. 



·        Rights to use the film and associated materials for other negotiated marketing and tourism opportunities or for promotion with screen industry bodies etc. 


·        Support in staging another outdoor family screening of the film locally after it’s theatrical release.

 

Significant spend in the City during filming will provide economic benefit to the local economy. The request is to support the pre production, production and launch costs of the film which will be produced in Wagga Wagga. The film is expected to cost $1.85million with $1m estimated to be spent in Wagga Wagga. This figure is based on a cast and crew of 80 during the five week filming process and three week production process. This figure is calculated from direct spend in various local establishments including accommodation, catering, equipment hire, general office supplies, restaurants, clubs, hotels, hairdressing, theatres, cinemas, fuel, fitness facilities, set building, painting material etc. 

 

The themes of tolerance, acceptance and cultural sharing will be explored in this film and are relevant to the City given we are a refugee welcome zone and that one of the guiding principles of the City’s recently endorsed Community Strategic Plan is that Wagga Wagga be an inclusive community. ‘The Merger’ film project will also provide opportunities for community members from refugee backgrounds to become involved in the film and to share their skills and knowledge in the telling of this comedic, yet very powerful story.

 

While it is recommended this proposal be funded from uncommitted funds in the Major Events sponsorship budget allocation, it is not a major event sponsorship application. There is $12,000 remaining uncommitted in the Major Events Sponsorship budget in 2016/17. If this recommendation is accepted this allocation will be fully expended for this financial year.

 

POL 087 Major Events Sponsorship.

The purpose of this policy is stimulate tourism, economic activity and to increase State and National exposure of Wagga Wagga.

 

Community Leadership and Collaboration

Objective: We are active community members

Outcome: We recognise we all have a role to play

 

No specific issues identified.

Internal consultation with relevant staff to discuss applications.

External consultation with applicants for sponsorship.

 

 

1⇩.

Application Major Events Sponsorship - Crow Crow Productions

 

 

 

 

RP-7                             Lights4Lake Request for Additional Costs

Sector Manager:       Caroline Angel

         

Analysis:

Committee4Wagga have approached Council for additional funds to cover the costs that the Committee incurred in completing the Lights4Lake project.

 

 

Recommendation That Council consider a request for $3907.50 to be provided to Committee4Wagga for additional works relating to the Lights4Lake Project.

 

Council at its meeting held 29 June 2015 resolved:

 

That Council:

a       approve a $75,000 commitment to the Lights 4 Lake project to be funded from $25,000: S94Plan- item OS24 Neighbourhood Parks (South) embellishment, and $50,000: Environment Energy Saving Plan in the 2015/2016 financial year

b       include the ongoing costs in the Lake Albert Improvements Reserve budget

c        task Committee 4 Wagga to undertake the installation of the project including project management

d       task Committee 4 Wagga to include a 3 year guarantee for solar panels and batteries into the tender specifications and contract

e       authorise the General Manager or his delegate to enter into a funding agreement with Committee 4 Wagga

f         authorise the affixing of the Council's common seal to documents as required

 

City of Wagga Wagga partnered with Committee4Wagga to deliver the Lights4Lake project which was completed in March 2017.

 

Correspondence has since been received from Committee4Wagga requesting a contribution towards additional costs incurred by the Committee prior to the completion of the project.

 

A copy of the correspondence from Committee4Wagga detailing the request for additional funding is attached for consideration.

If Council decided to donate an additional $3,907.50 GST inclusive ($3,552.27 GST exclusive) to the Committee4Wagga for additional works relating to the Lights4Lake project, this would bring the total GST exclusive cash contribution provided by Council for the project up to $78,552.27.  This does not include the ongoing maintenance costs Council has resolved to fund for the life of the asset.

 

If it was Council’s recommendation, a potential funding source for the extra $3,552.27 GST exclusive contribution could be S94 funding, with item RT2 Shared path around Lake Albert having available funds to cover this $3,552.27 request.

 

N/A

 

Safe and Healthy Community

Objective: We promote a healthy lifestyle

Outcome: Recreation is a part of everyday life

 

No specific risks identified.

Consultation has occurred across respective Council sectors.

 

 

1⇩.

Committee4Wagga request for additional funding re Lights4Lake Project

 

 

 

 

 

RP-8                             Draft Wagga Wagga Integrated Transport Strategy and Implementation Plan 2040

Author:                        Tristan Kell

Sector Manager:       Natalie Te Pohe

         

Analysis:

After consideration of the feedback from the community in relation to the independent Peer Review Report, the City of Wagga Wagga has developed a draft Wagga Wagga Integrated Transport Strategy and Implementation Plan 2040 and is now seeking to place the document on public exhibition to seek further public feedback prior to presenting the document to Council for adoption.

 

 

Recommendation That Council: a       acknowledge receipt of a petition against acceptance of the Integrated Transport Report to City of Wagga Wagga and to extend the Gobbagombalin Bridge within the next 10 years b       notes that the public exhibition period for the independent Peer Review and Summary of Findings report was extended from 29 March 2017 to 31 March 2017 to allow for submissions to be provided up to the Friday of that week c        notes that the public submissions and petition received in relation to the independent Peer Review and Summary of Findings report have been utilised to develop the draft Wagga Wagga Integrated Transport Strategy and Implementation Plan 2040 d       thanks the community and key stakeholders for their input into the development of the draft Wagga Wagga Integrated Transport Strategy and Implementation Plan 2040 e       receives the draft Wagga Wagga Integrated Transport Strategy and Implementation Plan 2040 f        places the draft Wagga Wagga Integrated Transport Strategy and Implementation Plan 2040 on public exhibition for a period exceeding 28 days from 23 May to 30 June 2017, and invite public submissions on the draft document g       receive a further report following the public exhibition period: (i)      addressing any submission made in respect of the proposed Wagga Wagga Integrated Transport Strategy and Implementation Plan 2040 (ii)     proposing adoption of the Wagga Wagga Integrated Transport Strategy and Implementation Plan 2040 unless there are any recommended amendments deemed to be substantial and requiring a further public exhibition period

 

Placing the draft Wagga Wagga Integrated Transport Strategy and Implementation Plan 2040 (WWITS) on public exhibition provides a final opportunity for community members, including businesses and key stakeholders to review the strategy and implementation plan and to provide submissions.

 

This process will allow for consideration of the submissions and petition received ensuring that Council is provided with a clear direction prior to consideration of the final WWITS.

 

The final WWITS document is a blueprint for transport in Wagga Wagga that reflects the needs and expectations for the community, leaving a legacy for future planning and projects with the goal of creating an active, safe, healthy and vibrant city that enhances Wagga Wagga’s position as a leading regional city.

 

The document is integral to the development of the Recreation and Open Space Strategy and the Activation Strategy (formerly known as the Residential Strategy).

 

Each of these strategy documents will inform the Council’s Development Control Plan and Local Environmental Plan which are critical to the future of Wagga Wagga, along with assisting with the review of Section 94 Projects to be incorporated into the Contributions Plans; these documents are all currently under review, however will be aligned with the final WWITS document, other strategic documents and the Long Term Financial Plan.

 

Development of the WWITS has a $248,000 budget, with $202,338 expended during 2015/16, $37,543 expended and committed to date during 2016/17, leaving $8,119 currently unexpended. It is important to note that the budget allocation has not only been for the technical and independent reports, but also for the significant consultation process and summary documents produced as a result.

POL 086 Petitions Management Policy

 

While not a policy, the Community Engagement Strategy, particularly the IAP2 Spectrum of how the community should be engaged in this process is relevant to this next public exhibition stage.

 

Community Leadership and Collaboration

Objective: We have strong leadership

Outcome: We plan long term

 

The risk to the Council is that the community and industry are not involved in the development of future policies and projects should this document not be placed on public exhibition. Other risks may include the perception that some community feedback has not been considered if it hasn’t been expressly included in the draft WWITS. In response to this, it should be noted that not all submissions supported the same outcome, and the draft WWITS has taken into account the majority views where possible.

Extensive public consultation has occurred to inform the draft WWITS with community engagement to date including the following:

 

·    Community Engagement

o Stakeholders Visioning Workshop – November 2015

o Speak Out – December 2015

o Survey and Interactive Mapping – January 2016

·    Technical Report – March 2016

·    Moving Forward Together: What Matters to You? – March / April 2016

·    Active Travel Plan: Cycling – September 2016

·    Peer Review and Summary of Findings on the independent technical report – February 2017

 

·          Councillor workshops were held on the following dates:

o 20 December 2016

o 13 February 2017

o 3 April 2017

o 18 April 2017

o 8 May 2017

 

·          A key stakeholder briefing regarding the Peer Review report occurred on 14 February 2017

·          Five (5) key stakeholder workshops were held over 22 and 23 March 2017

·          90 submissions were received relating to the independent technical report and peer review documents including 271 suggestions

·          A public petition with 1332 signatures was received from Ronda Lampe titled “This petition is against the acceptance of the Integrated Transport Report to Wagga Wagga City Council but we do need an extension to the Gobbagombalin Bridge within the next 10 years”.

 

The petition consisted of 1332 signatures and was received by the Council on 31 March 2017. While petitions are generally included as a separate report, in this case it was also considered to be a submission as it was received during the public exhibition stage of the independent Peer Review and Summary of Findings report when feedback was being sought. The public exhibition period was extended to 31 March rather than 29 March to allow for submissions up to the Friday of that week.

 

At the 27 February 2017 Ordinary Meeting of Council, the Council resolved:

 

That Council:

a       receive the independent Peer Review and Summary of Findings prepared

by MR Cagney

b       request the General Manager or his delegate to place the Peer Review and Summary of Findings document on public exhibition for a period of 28

days from 1 March to 29 March 2017, and invite public submissions on the

Peer Review and Summary of Findings document

c        receive a further report following the public exhibition period:

i        addressing any submission made

ii       providing an overview of the submissions for consideration to be incorporated into the Wagga Wagga Integrated Transport Strategy

 

As outlined in the resolution above, the submissions received during the public exhibition process would be considered and incorporated into the Wagga Wagga Integrated Transport Strategy. The intent was not for Council to accept the Peer Review and Summary of Findings document, but to utilise this document to re‑engage with the community in order to finalise the development of the WWITS.

 

The draft WWITS attached to this report takes into account some of the findings from the Peer Review report based on the positive community feedback received, however not all findings have been supported, and have therefore not been included in the draft WWITS attached. A summary of the public submissions received has been included in Attachment 1 to this report and an overview has also been incorporated into the draft WWITS.

 

In relation to the public exhibition period that is now proposed for the draft WWITS, the following communications and engagement plan is proposed:

 

Week One:

·    Our Transport website updated to reflect timeline

·    Media briefing

·    Council News story

·    Draft WWITS and Implementation Plan presented to Council

·    Engage key stakeholders requesting to provide feedback

·    Summary of findings placed on exhibition website with a Question and Answer (Q & A) forum and online submission form

 

Weeks Two to Four:

·    Feature stories in Council News

·    Feature WWITS at Charlie visits

·    End of Public Exhibition story (30 June 2017)

 

Post Exhibition Period:

·    City Strategy team to review submissions, make necessary changes to WWITS and respond to submissions

·    Charlie visits

·    Final document presented to Council for adoption (28 August 2017)

·    Adopted Strategy redirected to main website

·    Engage stakeholders contacted thanking them for their contribution and directing them to the adopted document, outlining any changes

 

There has also been extensive internal consultation throughout the development process whereby not only key technical officers were heavily involved, but also the Corporate Review Committee (CRC), Finance Department, and Executive team.

 

 

1⇩.	Summary of Submissions - Provided under separate cover
2⇩.	Draft Wagga Wagga Integrated Strategy and Implementation Plan 2040 - Provided under separate cover

 

 

 

RP-9                             Compulsory Acquisition of Maxwell Fire Brigade Station Site

Author:                        David Butterfield

Sector Manager:       Natalie Te Pohe

         

Analysis:

This report will enable the City of Wagga Wagga to proceed with the compulsory acquisition of land from deceased land owners.

 

 

Recommendation That Council: a       proceed with the compulsory acquisition of the land described as Lot 1 DP 309572 for public purposes in accordance with the requirements of the Land Acquisition (Just Terms Compensation) Act 1991 b       make application to the Minister and the Governor for approval to acquire Lot 1 DP 309572 by compulsory process for public purposes under Section 186(1) of the Local Government Act 1993 c        agree that after acquisition of Lot 1 DP 309572 the land be classified as Operational Land in accordance with Section 31(2) of the Local Government Act 1993 d       pay compensation to all interest holders entitled to compensation by virtue of the compulsory acquisition on the terms set out in the Land Acquisition (Just Terms Compensation) Act 1991 e       agree that all minerals are to be exempt from the acquisition of Lot 1 DP 309572 f        delegate authority to the General Manager or their delegate to execute any necessary documents on behalf of the City of Wagga Wagga

 

This report concerns the compulsory acquisition of approximately 1019 square metres of land at the corner of Holbrook and Oxley Bridge Roads being Lot 1 DP 309572 and zoned RU1 Primary Production. The NSW Rural Fire Service (RFS) occupies the property for use as the “Maxwell Fire Brigade Station”.

 

It has recently been revealed that the property is in the ownership of Charles Condon (deceased 22 August 2006), Percy Lachlan Condon (deceased 7 March 1968), Hugh Oates (deceased 18 October 1922) and Peter Hill (deceased 24 June 1950).

 

The City of Wagga Wagga is responsible for and allocates funding to RFS. Accordingly, it is essential that title to the property is registered into the name of the City to protect ownership of the infrastructure. The acquisition will also resolve the issue of unpaid rates which have been outstanding since July 2010.

 

The City may attain legal ownership through a process of compulsory acquisition under the provisions of the Land Acquisition (Just Terms Compensation) Act 1991 by making application to the Office of Local Government. Public notification of the proposed acquisition has been undertaken with no submissions being received within the required time period.

 

A budget of $5,000 (excluding GST) has been estimated for the acquisition of the land and includes payment of compensation together with legal and valuation fees. The budget may vary once the Valuer General determines the compensation amount. An additional allowance of $2,500 has been made to offset unpaid rates that will be written off if the compulsory acquisition is endorsed.

 

As mentioned in this report, at this stage the estimated cost of acquiring this land is approximately $7,500 and is to be funded from the Non-Strategic Land Acquisitions $35,000 budget allocation in 2017/18.

 

N/A

Safe and Healthy Community

Objective: We are safe

Outcome: We are responsive to emergencies

 

No specific issues identified.

·        NSW Rural Fire Service

·        Office of Local Government

·        Land & Property Information NSW

 

 

1⇩.

Location Map - Lot 1 DP 309572 at Maxwell

 

 

 

 

RP-10                          CANCELLATION OF RIGHT OF CARRIAGEWAY - LOT 2 DP 1138428 - STURT STREET, WAGGA WAGGA

Author:                        David Butterfield

Sector Manager:       Natalie Te Pohe

         

Analysis:

This report provides the mechanism for Council to agree to the cancellation of a right of carriageway over another party’s land.

 

 

Recommendation That Council: a       agree to the cancellation of a right of carriageway over Lot 2 DP 1138428 in Sturt Street, Wagga Wagga subject to the conditions noted in the body of this report b       delegate authority to the General Manager or their delegate to execute any necessary documents on behalf of Council

 

The City of Wagga Wagga has been approached by Shatsui Pty Ltd (Directors: Robert James Connolly and David John Bolton) regarding the cancellation of a right of carriageway benefitting the City of Wagga Wagga over their land at Lot 2 DP1138428 (11 Sturt Street, Wagga Wagga).

 

The right of carriageway was established to provide vehicle access to the levee bank from Cadel Place. The City of Wagga Wagga’s Commercial Operations Sector has advised this access will no longer be required once the main levee bank upgrade is completed.

 

Cancellation of the right of carriageway is therefore recommended as it represents an unnecessary burden on the land owner. This recommendation is made subject to the following conditions:

 

1.      Cancellation of the right of carriageway is deferred until the main levee bank upgrade is completed between the Wiradjuri Bridge and Wagga Beach. Certification of completion is to be provided by the Project Manager for the main levee bank upgrade.

 

2.      All costs associated with the cancellation of the right of carriageway are to be borne by Shatsui Pty Ltd or their successor.

 

There are no financial implications for the City of Wagga Wagga if this report is approved. As mentioned in the body of this report, all costs associated with the cancellation of the right of carriageway are to be borne by Shatsui Pty Ltd or their successor.

N/A

The Environment

Objective: We plan for the growth of the city

Outcome: We have sustainable urban development

 

No specific issues identified.

The City’s Commercial Operations Sector.

 

 

1⇩.

Location Map - Lot 2 DP 1138428

 

 

 

 

RP-11                          2016/17 Loan Facility

Author:                        Carolyn Rodney

Sector Manager:       Natalie Te Pohe

         

Analysis:

This report is for Council to consider and approve the loan borrowings treatment for the projects listed in the 2016/17 Long Term Financial Plan which have loan borrowings as a funding source.

 

 

Recommendation That Council utilise up to $1.91M in funding from the Internal Loans Reserve to complete the 2016/17 borrowings program for capital projects identified in this report.

 

The City of Wagga Wagga has included a number of projects in its 2016/17 Long Term Financial Plan that include Loan Borrowings as a funding source. With these projects having commenced, it is necessary for the City to obtain Loan Borrowings quotations from financial institutions.

 

Council’s Long Term Financial Plan (LTFP) for 2016/17 detailed a number of capital projects that require borrowings as a funding source.

 

Project	Estimated loan drawdown amount*
Lawn Cemetery Stage 2A Works	$192,165
Bomen RiFL Development	$1,539,922
Airport - Bay 4 Concrete Pads and Lead In	$175,000
Total Funds Required	$1,907,087

*Estimated loan drawdown amount is not reflective of the total project budget. Other funding sources may be applicable. This amount is indicative at the time of the report being written and is subject to change.

 

With expenditure for the majority of these projects almost finalised for the year, City staff approached the following 11 financial institutions requesting quotations on two tranches ($1.54M - 20 year loan term; $367K - 10 year loan term) totalling $1.91M required for the above projects.

 

·        National Australia Bank (NAB)

·        Commonwealth Bank of Australia (CBA)

·        Westpac Bank

·        Australia and New Zealand Bank (ANZ)

·        New South Wales Treasury Corporation (NSW T-Corp)

·        Suncorp Bank

·        St George Bank

·        Bendigo-Adelaide Bank

·        Beyond Bank

·        G&C Mutual Bank

·        Hume Bank

Attached is a summary of the quotes that were received from the financial institutions. In assessing these quotes, consideration was given to the best rate as well as the flexibility for the City to make additional principal repayments and/or ability to payout the loan earlier than required without incurring excessive break costs.

 

In an attempt to minimise the costs of borrowing, City staff have reviewed the capacity of internally restricted reserves and have determined that the Internal Loans Reserve has capacity (in the short term) to fund the $1.91M required.

 

The capacity for the Internal Loans reserve to fund the $1.91M is demonstrated in the below table:

 

 

Internal loans are treated in the same way as external borrowings in Council’s budget. Instead of repaying the banks, the City is repaying its own reserve with principal and interest which then creates capacity for further internal borrowings in the future. Internal loans represent a saving to the rates offered by the banks and provide greater flexibility with the ability to repay loans at an earlier point without penalty.

 

As per Council’s Internal Loans Borrowing Policy (POL020), the applicable interest rate is “the current Reserve Bank of Australia (RBA) cash rate”. As an indication, the RBA’s cash rate as at its April monthly meeting is 1.50%. As per the Internal Loans Borrowing Policy, the term for this loan will be based on a 10-year period.

 

If Council decide not to proceed with the above proposed funding model from internal reserves, City officers could contact the financial institutions again and obtain revised quotations and report back to the 26 June 2017 Council Meeting.

 

The City will achieve future budget savings due to lower than forecasted interest rates on borrowings associated with these projects. A further budget variation will be presented to Council after the completion of the 2016/17 financial statements, which will identify the exact savings for the life of the Long Term Financial Plan.

POL 019 – External Loan Borrowings

POL 020 – Internal Loan Borrowings

Community Leadership and Collaboration

Objective: We have strong leadership

Outcome: We are accountable and transparent

 

No specific issues identified.

The Finance Division has consulted with the financial institutions as listed in this report, along with internal stakeholders where required.

 

 

1⇩.	Summary of Borrowing Quotes - Tranche 1 - $1.54M
2⇩.	Summary of Borrowing Quotes - Tranche 2 - $367K

 

 

 

 

 

RP-12                          Financial Performance Report as at 30 April 2017

Author:                        Carolyn Rodney

Sector Manager:       Natalie Te Pohe

         

Analysis:

This report is for Council to consider and approve the proposed 2016/17 budget variations required to manage the 2016/17 budget and Long Term Financial Plan, and details Council’s external investments and performance as at 30 April 2017.

 

 

Recommendation That Council: a       approve the proposed 2016/17 budget variations for the month ended 30 April 2017 and note the balanced budget 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 April 2017 in accordance with section 625 of the Local Government Act 1993

 

The City of Wagga Wagga forecasts an overall balanced budget for the month of April 2017, which has not changed from the reported balanced budget presented for March 2017.

 

The City has experienced a negative monthly investment performance for the month of April that is mainly attributable to the City’s Floating Rate Note (FRN) portfolio having a slight decline in growth for the period. It should be noted that many of these investments continue to trade at a premium.

 

Financial Implications

 

 

OPERATING INCOME

Total operating income is 82% of approved budget which is tracking to budget for the end of March (this percentage excludes capital grants and contributions). An adjustment has been made to reflect the levy of rates that occurred at the start of the financial year. Excluding this adjustment, operating income received is 91%.

 

OPERATING EXPENSES

Total operating expenditure is 80% of approved budget and is tracking to budget for the full financial year.

 

CAPITAL INCOME

Total capital income is 22% of approved budget. It is important to 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 53% of approved budget. The RIFL Stage 1 contract commitment has been raised for $19M. Excluding this amount the total capital expenditure is 33% of approved budget.

 

CITY OF WAGGA WAGGA STATEMENT OF FINANCIAL PERFORMANCE 1 JULY 2016 TO 30 APRIL 2017
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)	(50,708,179)	0	(50,708,179)	84%
User Charges & Fees	(23,631,263)	(24,584)	(23,655,847)	(18,899,356)	0	(18,899,356)	80%
Interest & Investment Revenue	(3,406,597)	(695,888)	(4,102,485)	(3,568,295)	0	(3,568,295)	87%
Other Revenues	(3,123,096)	408,746	(2,714,350)	(2,555,021)	0	(2,555,021)	94%
Operating Grants & Contributions	(14,779,516)	(1,311,709)	(16,091,225)	(12,274,361)	0	(12,274,361)	76%
Capital Grants & Contributions	(34,768,294)	(22,621,920)	(57,390,214)	(14,713,537)	0	(14,713,537)	26%
Total Revenue	(140,351,052)	(24,245,355)	(164,596,407)	(102,718,750)	0	(102,718,750)	62%
Expenses
Employee Benefits & On-Costs	42,105,886	52,088	42,157,974	32,599,809	10,135	32,609,944	77%
Borrowing Costs	3,953,083	(157,682)	3,795,402	2,768,959	0	2,768,959	73%
Materials & Contracts	2,722,383	(22,903)	2,699,480	9,343,261	1,102,660	10,445,922	387%
Depreciation & Amortisation	32,405,375	0	32,405,375	27,004,479	0	27,004,479	83%
Other Expenses	37,493,005	3,761,133	41,254,139	22,636,887	2,248,462	24,885,349	60%
Total Expenses	118,679,732	3,632,637	122,312,369	94,353,395	3,361,258	97,714,652	80%
Net Operating (Profit)/Loss	(21,671,319)	(20,612,718)	(42,284,038)	(8,365,355)	3,361,258	(5,004,097)
Net Operating (Profit)/Loss before Capital Grants & Contributions	13,096,975	2,009,202	15,106,176	6,348,182	3,361,258	9,709,440
Cap/Reserve Movements
Capital Exp - Renewals	24,265,446	9,194,289	33,459,735	11,279,071	4,385,056	15,664,127	47%
Capital Exp - New Projects	45,730,456	10,514,056	56,244,512	13,193,559	21,927,285	35,120,843	62%
Capital Exp - Project Concepts	8,264,763	27,020	8,291,783	1,970	0	1,970	0%
Loan Repayments	2,603,821	(173,623)	2,430,198	2,025,164	0	2,025,164	83%
New Loan Borrowings	(13,859,917)	7,992,810	(5,867,108)	0	0	0	0%
Sale of Assets	(4,982,151)	2,968,619	(2,013,532)	(2,711,729)	0	(2,711,729)	135%
Net Movements Reserves	(7,945,724)	(9,910,451)	(17,856,175)	0	0	0	0%
Total Cap/Res Movements	54,076,694	20,612,718	74,689,412	23,788,034	26,312,340	50,100,375	67%
Net Result after Depreciation	32,405,375	0	32,405,375	15,422,679	29,673,598	45,096,277
Add back Depreciation Expense	32,405,375	0	32,405,375	27,004,479	0	27,004,479
Cash Budget (Surplus)/Deficit	(0)	0	(0)	(11,581,800)	29,673,598	18,091,798

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revised Budget Result - Surplus/(Deficit)	$’000s
Original 2016/17 Budget Result as adopted by Council Total Budget Variations approved as reported to 27 March 2017 Council Meeting Budget variations for April 2017	$0 $0   $0
Proposed revised budget result for 30 April 2017	$0

 

 

The proposed Budget Variations to 30 April 2017 are listed below:

 

Current Restrictions

 

CITY OF WAGGA WAGGA
RESERVES SUMMARY
30 APRIL 2017
	Approved Changes
	CLOSING BALANCE 2015/16	ADOPTED RESERVE TRANSFERS 2016/17	BUDGET VARIATIONS APPROVED UP TO COUNCIL MEETING 24.04.2017	RECOMM CHANGES for Council Resolution	REVISED BALANCE
Externally Restricted
Developer Contributions	(19,387,519)	1,683,496	1,030,300		(16,673,722)
Sewer Fund Reserves	(21,286,523)	2,385,453	3,581,841	25,000	(15,294,229)
Solid Waste Reserves	(12,803,085)	751,764	251,936	25,000	(11,774,386)
Specific Purpose Unexpended Grants/Contributions	(3,473,810)	0	3,473,810		0
Stormwater Levy Reserves	(2,537,418)	(228,466)	164,020		(2,601,864)
Total Externally Restricted	(59,488,355)	4,592,247	8,501,907	50,000	(46,344,200)
Internally Restricted
Airport Reserve	(202,674)	(65,492)	(31,851)		(300,017)
Art Gallery Reserve	(48,490)	(3,500)	17,500		(34,490)
Ashmont Community Facility Reserve	(3,000)	(1,500)	0		(4,500)
Bridge Replacement Reserve	(646,667)	140,000	420,000		(86,667)
CBD Carparking Facilities Reserve	(936,300)	(94,195)	293,949		(736,546)
CCTV Reserve	(54,476)	(10,000)	0		(64,476)
Cemetery Perpetual Reserve	(123,860)	(89,661)	200,000		(13,521)
Cemetery Reserve	(308,649)	(136,637)	271,552		(173,734)
Civic Theatre Operating Reserve	0	(100,000)	0		(100,000)
Civic Theatre Technical Infrastructure Reserve	(55,450)	(50,000)	0		(105,450)
Civil Projects Reserve	(155,883)	0	0		(155,883)
Community Amenities Reserve	(5,685)	0	0		(5,685)
Council Election Reserve	(417,616)	236,558	25,000		(156,058)
Economic Development Incentives Reserve	(19,500)	0	0		(19,500)
Emergency Events Reserve			(133,829)		(133,829)
Employee Leave Entitlements Gen Fund Reserve	(3,352,639)	0	0		(3,352,639)
Estella Community Centre Reserve	(230,992)	0	0		(230,992)
Family Day Care Reserve	(135,608)	14,606	0		(121,002)
Fit for the Future Reserve	(952,184)	388,225	(1,845,335)		(2,409,294)
Generic Projects Saving	(927,180)	(116,966)	103,039		(941,106)
Glenfield Community Centre Reserve	(15,704)	(2,000)	0		(17,704)
Grassroots Cricket Reserve	(45,942)	(15,000)	0		(60,942)
Gravel Pit Restoration Reserve	(738,010)	0	0	25,000	(713,010)
Gurwood Street Property Reserve	(50,454)	0	0		(50,454)
Industrial Land Development Reserve	(328,851)	0	0		(328,851)
Information Services / E-Business Reserve	(378,713)	0	0		(378,713)
Infrastructure Replacement Reserve	(77,488)	(887)	(41,092)		(119,467)
Insurance Variations Reserve	(28,644)	0	0		(28,644)
Internal Loans Reserve	(1,289,806)	(629,241)	444,842		(1,474,205)
Lake Albert Improvements Reserve	(113,972)	0	113,789		(182)
LEP Preparation Reserve	(38,665)	0	36,120		(2,545)
Livestock Marketing Centre Reserve	(8,095,560)	3,215,056	1,305,773		(3,574,732)
Lloyd Environmental Projects Reserve	(101,371)	0	0		(101,371)
Museum Acquisitions Reserve	(39,378)	0	0		(39,378)
Oasis Building Renewal Reserve	(122,000)	(50,000)	121,000		(51,000)
Oasis Plant Reserve	(1,005,347)	(110,000)	0		(1,115,347)
Parks & Recreation Projects	(91,288)	0	86,000		(5,288)
Pedestrian River Crossing (old Riverside) Reserve	(198,031)	150,000	0		(48,031)
Plant Replacement Reserve	(5,145,588)	(151,353)	158,636		(5,138,305)
Playground Equipment Replacement Reserve	0	(51,230)	0		(51,230)
Project Carryovers Reserve	(1,841,669)	0	1,841,669		0
Public Art Reserve	(199,713)	137,579	51,424		(10,711)
Robertson Oval Redevelopment Reserve	(86,697)	0	0		(86,697)
Senior Citizens Centre Reserve	(11,627)	(2,000)	0		(13,627)
Silverlite Reserve	(29,980)	0	0		(29,980)
Sister Cities Reserve	(30,914)	(10,000)	5,000		(35,914)
Stormwater Drainage Reserve	(473,996)	0	300,318		(173,678)
Strategic Real Property Reserve	(5,136)	0	(314,073)		(319,209)
Street Lighting Replacement Reserve	(44,755)	(30,000)	0		(74,755)
Subdivision Tree Planting Reserve	(195,795)	40,000	0		(155,795)
Sustainable Energy Reserve	(430,442)	(90,000)	0		(520,442)
Traffic Committee Reserve	0	(50,000)	0		(50,000)
Unexpended External Loans Reserve	(163,087)	0	0		(163,087)
Total Internally Restricted	(29,995,474)	2,462,361	3,429,431	25,000	(24,078,682)
Total Restricted	(89,483,829)	7,054,608	11,931,339	75,000	(70,422,882)

 

 

 

Investment Summary as at 30 April 2017

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

 

Institution	Rating	Closing Balance Invested 31/03/2017 $	Closing Balance Invested 30/04/2017 $	April EOM Current Yield %	April EOM % of Portfolio	Investment Date	Maturity Date	Term (months)
Short Term Deposits
Police Credit Union	NR	1,000,000	1,000,000	2.87%	0.97%	6/12/2016	6/12/2017	12
BOQ	A-	2,000,000	0	0.00%	0.00%	2/09/2016	4/04/2017	7
BOQ	A-	2,000,000	2,000,000	2.80%	1.95%	7/12/2016	7/07/2017	12
Bank of Sydney	NR	2,000,000	2,000,000	2.75%	1.95%	30/09/2016	29/09/2017	12
CUA	BBB+	1,000,000	1,000,000	2.80%	0.97%	9/02/2017	5/01/2018	11
NAB	AA-	1,000,000	1,000,000	2.74%	0.97%	25/10/2016	25/05/2017	7
AMP	A+	2,000,000	2,000,000	3.00%	1.95%	2/08/2016	2/08/2017	12
BOQ	A-	1,000,000	1,000,000	2.80%	0.97%	7/11/2016	8/05/2017	6
Bankwest	AA-	2,000,000	2,000,000	2.50%	1.95%	4/04/2017	23/06/2017	3
ME Bank	BBB+	2,000,000	2,000,000	2.80%	1.95%	16/12/2016	16/10/2017	10
Bankwest	AA-	3,000,000	3,000,000	2.50%	2.92%	2/03/2017	1/05/2017	2
Beyond Bank	BBB+	2,000,000	2,000,000	2.65%	1.95%	2/03/2017	31/05/2017	3
CUA	BBB+	1,000,000	1,000,000	2.75%	0.97%	3/03/2017	2/03/2018	12
Total Short Term Deposits		22,000,000	20,000,000	2.72%	19.49%
At Call Accounts
NAB	AA-	1,691,402	809,916	1.50%	0.79%	N/A	N/A	N/A
NAB	AA-	7,916,804	5,431,154	2.19%	5.29%	N/A	N/A	N/A
AMP	A+	180,533	180,862	2.15%	0.18%	N/A	N/A	N/A
Beyond Bank	BBB+	147,837	147,983	1.00%	0.14%	N/A	N/A	N/A
CBA	AA-	37,731	37,684	0.00%	0.04%	N/A	N/A	N/A
Total At Call Accounts		9,974,306	6,607,598	2.07%	6.44%
Medium Term Deposits
RaboBank	A+	1,000,000	0	0.00%	0.00%	23/04/2012	24/04/2017	60
RaboBank	A+	1,000,000	1,000,000	5.90%	0.97%	4/06/2012	5/06/2017	60
BOQ	A-	1,000,000	1,000,000	6.30%	0.97%	22/08/2012	22/08/2017	60
ING Bank	A-	3,000,000	3,000,000	6.00%	2.92%	24/08/2012	24/08/2017	60
Hume Building Society	NR	1,009,123	1,009,123	4.10%	0.98%	21/08/2014	21/08/2017	36
Banana Coast CU	NR	1,000,000	1,000,000	4.25%	0.97%	3/06/2014	2/06/2017	36
ME Bank	BBB+	2,000,000	2,000,000	4.28%	1.95%	2/09/2014	2/09/2019	60
Rabobank	A+	1,000,000	1,000,000	4.10%	0.97%	5/12/2014	5/12/2019	60
Beyond Bank	BBB+	990,000	990,000	3.70%	0.96%	4/03/2015	4/03/2018	36
Beyond Bank	BBB+	990,000	990,000	3.70%	0.96%	11/03/2015	11/03/2018	36
AMP	A+	2,000,000	2,000,000	3.10%	1.95%	2/06/2015	2/06/2017	24
AMP	A+	1,000,000	1,000,000	3.10%	0.97%	13/07/2015	13/07/2017	24
Newcastle Permanent	BBB+	1,000,000	1,000,000	3.00%	0.97%	12/08/2016	12/08/2019	36
Rabobank	A+	1,000,000	1,000,000	3.20%	0.97%	25/08/2016	25/08/2021	60
Newcastle Permanent	BBB+	1,000,000	1,000,000	3.00%	0.97%	31/08/2016	30/08/2019	36
Police Credit Union	NR	1,000,000	1,000,000	2.90%	0.97%	8/09/2016	10/09/2018	24
Newcastle Permanent	BBB+	2,000,000	2,000,000	3.00%	1.95%	10/02/2017	11/02/2019	24
Westpac	AA-	3,000,000	3,000,000	3.10%	2.92%	10/03/2017	10/03/2022	60
Institution	Rating	Closing Balance Invested 31/03/2017 $	Closing Balance Invested 30/04/2017 $	April EOM Current Yield %	April EOM % of Portfolio	Investment Date	Maturity Date	Term (months)
Total Medium Term Deposits		24,989,123	23,989,123	3.97%	23.37%
Floating Rate Notes - Senior Debt
Bendigo-Adelaide	A-	1,002,828	1,004,232	BBSW + 93	0.98%	17/09/2014	17/09/2019	60
BOQ	A-	2,008,880	2,010,860	BBSW + 110	1.96%	5/08/2014	24/06/2019	58
BOQ	A-	1,004,395	1,003,211	BBSW + 107	0.98%	6/11/2014	6/11/2019	60
BOQ	A-	1,008,564	1,009,738	BBSW + 107	0.98%	10/11/2014	6/11/2019	60
ME Bank	BBB+	1,003,885	1,005,930	BBSW + 100	0.98%	17/11/2014	17/11/2017	36
ME Bank	BBB+	1,000,934	1,000,665	BBSW + 100	0.97%	17/11/2014	17/11/2017	36
Teachers Mutual	BBB+	1,003,987	1,005,977	BBSW + 105	0.98%	4/12/2014	4/12/2017	36
Newcastle Permanent	BBB+	1,005,030	1,006,660	BBSW + 110	0.98%	27/02/2015	27/02/2018	36
Macquarie Bank	A	2,014,804	2,018,867	BBSW + 110	1.97%	3/03/2015	3/03/2020	60
ANZ	AA-	757,020	753,232	BBSW + 82	0.73%	17/04/2015	17/04/2020	60
Heritage Bank	BBB+	1,005,290	1,000,880	BBSW + 115	0.98%	7/05/2015	7/05/2018	36
NAB	AA-	1,005,164	1,005,798	BBSW + 80	0.98%	3/06/2015	3/06/2020	60
Heritage Bank	BBB+	1,005,290	1,000,880	BBSW + 115	0.98%	9/06/2015	7/05/2018	35
CBA	AA-	1,012,302	1,005,672	BBSW + 90	0.98%	17/07/2015	17/07/2020	60
Westpac	AA-	1,011,720	1,004,990	BBSW + 90	0.98%	28/07/2015	28/07/2020	60
Bendigo-Adelaide	A-	1,007,820	1,008,260	BBSW + 110	0.98%	18/08/2015	18/08/2020	60
Credit Suisse	A	1,006,880	1,008,970	BBSW + 105	0.98%	24/08/2015	24/08/2018	36
Bendigo-Adelaide	A-	1,007,651	1,008,805	BBSW + 110	0.98%	28/09/2015	18/08/2020	59
Westpac	AA-	2,020,854	2,007,856	BBSW + 90	1.96%	30/09/2015	28/07/2020	58
Suncorp-Metway	A+	1,015,364	1,010,124	BBSW + 125	0.98%	20/10/2015	20/10/2020	60
Westpac	AA-	4,069,000	4,040,560	BBSW + 108	3.94%	28/10/2015	28/10/2020	60
AMP	A+	1,815,714	1,816,758	BBSW + 110	1.77%	11/12/2015	11/06/2019	42
CBA	AA-	1,019,751	1,012,750	BBSW + 115	0.99%	18/01/2016	18/01/2021	60
BOQ	A-	1,007,638	1,002,927	BBSW + 100	0.98%	5/02/2016	5/02/2018	24
Rabobank	A+	2,048,046	2,050,912	BBSW + 150	2.00%	4/03/2016	4/03/2021	60
Newcastle Permanent	BBB+	1,008,410	1,008,261	BBSW + 160	0.98%	22/03/2016	22/03/2019	36
CUA	BBB+	2,016,584	2,022,356	BBSW + 160	1.97%	1/04/2016	1/04/2019	36
ANZ	AA-	1,014,132	1,015,298	BBSW + 118	0.99%	7/04/2016	7/04/2021	60
Suncorp-Metway	A+	1,020,049	1,014,257	BBSW + 138	0.99%	21/04/2016	12/04/2021	60
AMP	A+	1,018,909	1,019,894	BBSW + 135	0.99%	24/05/2016	24/05/2021	60
Westpac	AA-	1,017,470	1,017,290	BBSW + 117	0.99%	3/06/2016	3/06/2021	60
CBA	AA-	1,022,734	1,016,236	BBSW + 121	0.99%	12/07/2016	12/07/2021	60
ANZ	AA-	2,033,156	2,034,260	BBSW + 113	1.98%	16/08/2016	16/08/2021	60
BOQ	A-	1,518,337	1,510,874	BBSW + 117	1.47%	26/10/2016	26/10/2020	48
NAB	AA-	1,013,392	1,007,027	BBSW + 105	0.98%	21/10/2016	21/10/2021	60
Teachers Mutual	BBB+	1,510,323	1,502,300	BBSW + 140	1.46%	28/10/2016	28/10/2019	36
Bendigo-Adelaide	A-	1,007,327	1,007,974	BBSW + 110	0.98%	21/11/2016	21/02/2020	39
Westpac	AA-	1,015,900	1,007,540	BBSW + 111	0.98%	7/02/2017	7/02/2022	60
ANZ	AA-	1,007,821	1,007,390	BBSW + 100	0.98%	7/03/2017	7/03/2022	60
CUA	BBB+	751,631	753,432	BBSW + 130	0.73%	20/03/2017	20/03/2020	36
Total Floating Rate Notes - Senior Debt		50,844,988	50,749,904		49.44%
Managed Funds
NSW Tcorp	NR	1,266,489	1,292,843	2.08%	1.26%	17/03/2014	1/03/2022	95
Total Managed Funds		1,266,489	1,292,843	2.08%	1.26%
TOTAL CASH ASSETS, CASH EQUIVALENTS & INVESTMENTS		109,074,907	102,639,468	2.57%	100.00%
LESS: RIVERINA REGIONAL LIBRARY (RRL) CASH		2,817,545	2,594,187
TOTAL WWCC CASH ASSETS, CASH EQUIVALENTS & INVESTMENTS		106,257,362	100,045,281

 

 

The City’s portfolio is dominated by Floating Rate Notes (FRN’s) at approximately 50% across a broad range of counterparties. Cash equates to 6% of the City’s portfolio with Term Deposits around 43% and growth funds around 1% of the portfolio.

 

 

The City’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

 

The City of Wagga Wagga’s investment portfolio balance has decreased from the previous month’s balance, down from $106.3M to $100.0M. This is reflective of a number of larger contract payments being made during April 2017.

 

 

 

MONTHLY INVESTMENT MOVEMENTS

 

Redemptions/Sales – The City of Wagga Wagga redeemed the following investment securities during April 2017:

 

Institution and Type	Amount	Investment Term	Interest Rate	Comments
Bank of Queensland Term Deposit	$2M	7 months	2.75%	This term deposit was redeemed for cashflow purposes.
Rabobank Term Deposit	$1M	5 years	6.40%	This term deposit was redeemed for cashflow purposes.

 

New Investments – The City of Wagga Wagga did not purchased any investment securities during April 2017.

 

Rollovers – The City of Wagga Wagga rolled over the following investment securities during April 2017:

 

Institution and Type	Amount	Investment Term	Interest Rate	Comments
Bankwest Term Deposit	$2M	80 days	2.50%	This term deposit was a two (2) month investment at 2.50% and was rolled at maturity into an 80-day term deposit at 2.50%. This investment term was chosen to offset large contractor payments estimated to be payable at the end of June 2017.

 

 

MONTHLY PERFORMANCE

 

Interest/growth/capital gains for the month totaled $217,016 that compares unfavourably with the budget for the period of $315,584 – under performing budget for the April month by $98,568. This is mainly attributable to the City’s Floating Rate Note (FRN) portfolio having a slight decline in growth for the April period. It should be noted that many of these investments continue to trade at a premium.

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

 

It is also important to note that the City’s investment portfolio balance has consistently been over $100M, which is tracking above what was originally predicted. This is mainly due to timing of some of the major projects that are either not yet commenced or not as advanced as originally predicted. It is anticipated that over the coming months the portfolio balance will reduce with the construction of major projects.

 

Due to the continued high balance of the investment portfolio, City officers have reviewed the budget for interest on investments and revised up by $700,000, reported to Council at the 24 April 2017 Council Meeting. This revised income budget figure is reflective of the anticipated amounts to be received for the remainder of the 2016/17 financial year. The below graph includes the proposed revised income budget.

 

 

The City of Wagga Wagga’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 that the average deposit yield will inevitably fall as some of the longer-dated deposits mature throughout the 2017 calendar year.

 

In comparison to the AusBond Bank Bill Index* (+1.88%pa), the City’s investment portfolio in total returned 2.57% for April. Short term deposits returned 2.72%. 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.

Budget variations are reported in accordance with Council’s POL 052 Budget Policy.

Investments are reported in accordance with Council’s POL 075 Investment Policy.

 

Community Leadership and Collaboration

Objective: We have strong leadership

Outcome: We are accountable and transparent

 

No specific issues identified.

All relevant areas within the City of Wagga Wagga 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 the City’s investment portfolio balances.