Agenda of Ordinary Meeting of Council

Report submitted to the Ordinary Meeting of Council on Monday 26 June 2017. RP-8

RP-8 Response to Questions with Notice

Author: Ingrid Hensley

General Manager: Robert Knight

Analysis:

The following are Responses to Questions/Business with Notice arising from the Ordinary Council Meeting on 22 May 2017.

Recommendation

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

Key Reasons

The Report below address the Questions/Business with Notice raised during the Ordinary Council Meeting held Monday, 22 May 2017.

1. Councillor D Hayes asked how much will the City of Wagga receive with the unfreezing of the indexation of Federal assistance grants?

Response provided by the Finance Sector

The Financial Assistance Grant program consists of two components:

· a general purpose component which is distributed between the states and territories according to population (i.e. on a per capita basis), and

· an identified local road component which is distributed between the states and territories according to fixed historical shares.

The freeze related to the local road component, while the population adjustment still occurred each year.

The Council received $9,611,117 this financial year for the total Financial Assistance Grant. The 2017/18 year is the first year after the freeze is lifted, with Council officers estimating a conservative 2% increase from 2016/17, which equates to a budgeted $9,803,339 - an estimated $192,222 more than the amount received in 2016/17.

The table below highlights the increase in each component anticipated for 2017/18.

FAGS Component	2016/17 $	2017/18 $	Variance $
General Purpose	3,028,963	3,089,542	60,579
Local Roads	6,582,154	6,713,797	131,643
TOTAL	9,611,117	9,803,339	192,222

2. Councillor R Kendall asked how much money will the City of Wagga Wagga not receive with the unfreezing of the indexation of Federal assistance grants?

Response provided by the Finance Sector

If the freezing of the indexation had not occurred, it would have been likely that the Council would have received $10,779,249 for the 2017/18 financial year (assuming a 2% increase from 2016/17 to 2017/18), as opposed to the current budgeted $9,803,339 – a $975,910 decrease, cumulative over the long term.

In terms of the overall loss of income since the freeze came into place in 2014/15, the Council will not have received $2,888,705 in income. This amount would therefore increase by the cumulative $975,910 each year as the base amount was reduced.

The table below highlights the variation in each component since the freeze came into place in 2014/15, and what the overall reduction in income has been to date.

FAGS Component	2014/15 $	2015/16 $	2016/17 $	2017/18 $	Total $
*Freeze Not Applied – Original LTFP in 2014/15*
General Purpose	2,939,261	3,020,328	3,101,704	3,163,738	12,225,032
Local Roads	7,491,323	7,587,635	7,466,187	7,615,511	30,160,656
TOTAL	10,430,584	10,607,964	10,567,891	10,779,249	42,385,688
*Freeze Applied*
General Purpose	3,045,520	3,038,411	3,028,963	3,089,542	12,202,436
Local Roads	7,063,512	6,935,084	6,582,154	6,713,797	27,294,547
TOTAL	10,109,032	9,973,495	9,611,117	9,803,339	39,496,983
Variation in General Purpose	106,259	18,082	(72,741)	(74,196)	(22,596)
Variation in Local Roads	(427,811)	(652,551)	(884,033)	(901,714)	(2,866,109)
LOSS OF INCOME EACH YEAR	(321,552)	(634,469)	(956,774)	(975,910)	(2,888,705)

3 Councillor Dan Hayes asked, What will Council do about tapping into the Federal budget measures, such as the Regional Growth Fund?

Response provided by the Finance Sector

The Federal Government Budget announced $472.2 million in funding for a Regional Growth Fund over 4 years from 2017-18. The overall fund is split into two streams. The first stream is $272.2 million to support major transformational projects in regions undergoing structural adjustment to support long term economic growth. The second stream is an additional $200 million to the Building Better Regions Fund to support new or upgrading of existing infrastructure to support growth, and also to assist smaller community development activities.

Council has existing applications in progress with the Building Better Regions Fund and the Regional Growth (Tourism and Investment Fund) for infrastructural projects at the Airport, Riverside, Lake Albert, Pomingalarna Cycle track and the Museum. Officers will continue to monitor the progress of these applications in priority areas, and to examine the case for applying for grants in new areas prioritised by Council. It should be noted though that applications, in most cases require matching funding commitments, and also consideration needs to be given to the expected future operational cost commitments to Council’s budget resulting from infrastructural upgrades.

Staff will also continue to assist our Community groups applying to the Community Stream of funding, such as providing help with building business cases and in construction of cost benefit analysis. Finally, Staff will also continue to work closely and collaborate with its contacts in the Federal government around criteria applying to the Structural adjustment infrastructural funding.

The General Manager will continue to keep Councillors up to date with the outcomes of applications to these grant funding streams as fund names and dollars may change throughout the process.

4. Councillor Dan Hayes raised that Council was sent the preliminary sampling program report by the Department of Defence in regards to the contamination concerns by the Pfos chemical. It is my understanding that the safety levels for pfos contamination have changed and are now significantly lower levels than those used in the report? Is Council aware of this and will they seek further clarification on this matter with the Department of Defence?

Response provided by Community Sector

Out of the information afforded to Staff the following is provided:

The Department of Defence undertook a preliminary sampling program at Forest Hill in June 2016 to identify potential contamination with per- and poly-fluoroalkyl substances (PFAS). A total of five samples were collected at off-base locations at RAAF Base Wagga – three groundwater and two surface water samples. The purpose of the preliminary investigation was to determine whether contamination existed and determine the need for a detailed environmental investigation of the site.

The Preliminary Sampling Program report was released in November 2016 and based on the outcome of this preliminary sampling program Defence has determined that RAAF Base Wagga will be subject to a detailed environmental investigation.

The interim national Health Based Guidance Values (HBGVs) for PFAS was developed by the Environmental Health Standing Committee (enHealth) in June 2016 to assist relevant authorities in assessing any public health risks associated with the contamination of sites in Australia with per- and poly-fluoroalkyl substances (PFAS). The guidance included interim reference values for perfluorooctanesulfonate (PFOS), perfluorohexanesulfonate (PFHxS) and perfluorooctanoic acid (PFOA) for use in assessing food, drinking water and recreational water.

In its interim national guidance, enHealth recommended that Food Standards Australia New Zealand (FSANZ) undertake an assessment of the available toxicity data of PFOS, PFOA and PFHxS and publish relevant reference values to replace the interim toxicity reference values recommended by enHealth. The interim health based guidance values adopted by enHealth have now been replaced by the final health based guidance values for site investigations in Australia.

The detailed environmental investigation will determine the nature and extent of PFAS on, and in the vicinity of, the base. The investigation will commence in 2017 and will take approximately 12 months to complete. Defence has indicated the current and future Defence investigations and assessments, including those for RAAF Base Wagga, will use the FSANZ guidance values in place of the enHealth interim values.

Defence has been engaging with Council and the local community regarding the environmental investigations. Further information on the environmental investigation that will commence at RAAF Base Wagga can be found at www.defence.gov.au/ID/PFOSPFOA/DefenceSitesPending.ASP

5. Is there an update on the reported footpath issues where the NBN has been installed and the repair job is sub-standard, for example, outside the Home Hotel?

Response provided by Commercial Operations Sector

Works to repair the footpath adjacent to the Home Hotel were completed on 26 May 2017.

Council staff have been in discussion with LendLease, (agents for NBN) since late last year about the condition of the footpath after the completion of their works. LendLease has agreed to contribute $4,000 towards the overall repair costs of $6,000 - being the costs of repairing their portion of the substandard footpath.

The substandard state of the footpath was not entirely the responsibility of LendLease as a result of the NBN installation. Telstra had also carried out works on the corner at some stage and the installation of property stormwater at Home Tavern also resulted in substandard repairs. In addition, LendLease’s work was compromised by a Home Tavern delivery truck driving over the hotmix prior to its setting. The footpath is not trafficable by delivery vehicles.

A small number of Lendlease sites (including Home Tavern) were not restored satisfactorily and this issue was taken up with LendLease. The vast majority of sites were completed to a good standard and are not an issue.

Council has surveillance officers who inspect the state of its assets full time, noting any defects and adding the repairs to works programs. The surveillance officers respond to customer requests and also do regular, recurring inspections of areas.

Council does not monitor works by particular agencies. Telstra, NBN, Essential Energy and other utilities (and their agents) operate under various acts and do not need Council permission for the majority of their works. If any site is not restored to a satisfactory standard then it is usually picked up through a customer request or routine surveillance.

Financial Implications

N/A

Policy

Code of Meeting Practice.

Link to Strategic Plan

Community Leadership and Collaboration

Objective: We have strong leadership

Outcome: We have leaders that represent us

Risk Management Issues for Council

No specific issues identified.

Internal / External Consultation

N/A

Report submitted to the Ordinary Meeting of Council on Monday 26 June 2017. RP-9

RP-9 Integrated Planning and Reporting - Adoption of Documents

Author: Tristan Kell

Director: Natalie Te Pohe

Analysis:

This report addresses the Council’s obligations in ensuring legislative compliance and meeting the requirements of the Office of Local Government in adopting and implementing the Integrated Planning and Reporting Framework.

Recommendation

That Council, having considered all submissions received relating to the exhibited documents by the closing date of 24 May 2017:

a adopt the Combined Delivery Program and Operational Plan 2017/18

b adopt the Asset Management Plans: Buildings, Recreational Assets, Sewer, Stormwater and Transport Infrastructure Networks 2017/18

c adopt the Workforce Plan 2017/21

d adopt the Fees and Charges for the financial year 2017/18

e adopt the Long Term Financial Plan 2017/27

f sets the interest on overdue rates and charges for 2017/18, in accordance with Section 566(3) of the Local Government Act 1993, at 7.50% per annum, calculated on a daily simple interest basis (set in accordance with the limit advised by the NSW Office of Local Government)

g makes and levy the following Rates and Annual Charges for 2017/18 under the relevant sections of the Local Government Act 1993:

i Residential – City and Suburbs rate of 0.78380 cents in the dollar in terms of Sections 516 and 529 of the Local Government Act 1993, calculated on the land value in respect of all rateable lands situated in the centres of population defined by Council Resolution 12/176 as the City of Wagga Wagga and the Village of Forest Hill, excluding Business - City and Suburbs land, rated in accordance with the provisions of Section 518 of the Local Government Act 1993, Residential (Other) land as defined, and also Farmland, rated in accordance with the provisions of Section 515 of the Local Government Act, within such centres of population

A minimum rate of $665.00 for each parcel of land as prescribed under Section 548 of the Local Government Act 1993 shall apply to this rate

ii Residential – Other rate of 0.59020 cents in the dollar calculated on the land value in respect of all rateable land within the Council’s area, which, in the Council’s opinion, is land which:-

(a) is not less than two (2) hectares and not more than 40 hectares in area

(b) is either:

(i) not zoned or otherwise designated for use under an environmental planning instrument

(ii) zoned or otherwise designated for use under such an environmental planning instrument for non-urban purposes

Excludes Business - City and Suburbs land, rated in accordance with the provisions of Section 518 of the Local Government Act 1993, and also Farmland, rated in accordance with the provisions of Section 515 of the Local Government Act, within such centres of population

A minimum rate of $299.00 for each parcel of land as prescribed under Section 548 of the Local Government Act 1993 shall apply to this rate.

iii Residential – Villages rate of 0.52450 cents in the dollar in terms of Sections 516 and 529 of the Local Government Act 1993, calculated on the land value of all rateable land situated in the centres of population defined by Council Resolution 12/176 as the villages of San Isidore, Gumly Gumly, Tarcutta, Humula, Uranquinty, Mangoplah, Oura, Currawarna, Ladysmith, Galore, Collingullie and North Wagga excluding Business - Villages and Rural land, rated in accordance with the provisions of Section 518 of the Local Government Act 1993, Residential (Other) land as defined, and also Farmland, rated in accordance with the provisions of Section 515 of the Local Government Act, within such centres of population

A minimum rate of $251.00 for each parcel of land as prescribed under section 548 of the Local Government Act 1993 shall apply to this rate.

iv Business - City and Suburbs rate of 1.47300 cents in the dollar calculated on the land value of all rateable non-residential land, which cannot be classified as residential, or farmland land in the centres of population defined by Council Resolution 12/176 as the City of Wagga Wagga and the Village of Forest Hill, in terms of Sections 518 and 529 of the Local Government Act 1993

A minimum rate of $638.00 for each parcel of land as prescribed under Section 548 of the Local Government Act 1993 shall apply to this rate.

v Business - Villages and Rural rate of 0.66070 cents in the dollar calculated on the land value of all rateable land in the Council’s area, in terms of Sections 518 and 529 of the Local Government Act 1993, defined by Council Resolution 12/176, excluding lands defined as Business - City and Suburbs, Residential, and Farmland

A minimum rate of $107.00 for each parcel of land as prescribed under Section 548 of the Local Government Act 1993 shall apply to this rate.

vi Farmland rate of 0.35850 cents in the dollar, calculated on the land value of all rateable land, which, in Council’s opinion, qualifies as farmland as defined in Section 515 of the Local Government Act 1993

A minimum rate of $289.00 for each parcel of land as prescribed under Section 548 of the Local Government Act 1993 shall apply to this rate.

Special Rate - Levee Upgrade

vii Residential - City and Suburbs Special Rate - Levee upgrade rate of 0.03182 cents in the dollar in terms of Sections 516 and 529 of the Local Government Act 1993, calculated on the land value in respect of all rateable lands situated in the centres of population defined by Council Resolution 12/176 as the City of Wagga Wagga and the Village of Forest Hill, excluding Business - City and Suburbs land, rated in accordance with the provisions of Section 518 of the Local Government Act 1993, Residential (Other) land as defined, and also Farmland, rated in accordance with the provisions of Section 515 of the Local Government Act 1993, within such centres of population

viii Residential – Other Special Rate - Levee upgrade rate of 0.02370 cents in the dollar calculated on the land value in respect of all rateable land within the Council’s area, which, in the Council’s opinion, is land which:-

(a) is not less than two (2) hectares and not more than 40 hectares in area

(b) is either:

(i) not zoned or otherwise designated for use under an environmental planning instrument

(ii) zoned or otherwise designated for use under such an environmental planning instrument for non urban purposes

ix Residential – Villages Special Rate - Levee upgrade rate of 0.02098 cents in the dollar in terms of Sections 516 and 529 of the Local Government Act 1993, calculated on the land value of all rateable lands situated in the centres of population defined by Council Resolution 12/176 as the villages of San Isidore, Gumly Gumly, Tarcutta, Humula, Uranquinty, Mangoplah, Oura, Currawarna, Ladysmith, Galore, Collingullie and North Wagga excluding Business - Villages and Rural land, rated in accordance with the provisions of Section 518 of the Local Government Act 1993, Residential (Other) land as defined, and also Farmland, rated in accordance with the provisions of Section 515 of the Local Government Act, within such centres of population

x Business - City and Suburbs Special Rate - Levee upgrade rate of 0.05925 cents in the dollar calculated on the land value of all rateable non-residential land, which cannot be classified as residential, or farmland land in the centres of population defined by Council Resolution 12/176 as the City of Wagga Wagga and the Village of Forest Hill, in terms of Sections 518 and 529 of the Local Government Act 1993

xi Business - Villages and Rural Special Rate - Levee upgrade rate of 0.02650 cents in the dollar calculated on the land value of all rateable land in the Council’s area, in terms of Sections 518 and 529 of the Local Government Act 1993, defined by Council Resolution 12/176, excluding lands defined as Business - City and Suburbs, Residential, and Farmland

xii Farmland - Special Rate - Levee upgrade rate of 0.00675 cents in the dollar, calculated on the land value of all rateable land, which, in Council’s opinion, qualifies as farmland as defined in Section 515 of the Local Government Act 1993

xiii Sewerage Services Annual Charge of $498.00 per dwelling unit. Multiple residence properties are charged at $498.00 per residence, for all residences, and non-strata title residential premises on a single allotment (flats/units) situated within the Council’s centres of population, capable of being connected to the sewerage service scheme except when excluded by specific council policy, such charge being made in terms of Section 501 of the Local Government Act 1993

xiv Non Residential Sewer Charges

Access charge based on each and every meter connection per non-residential allotment for all non-residential premises and non-residential allotments situated within the Council’s centres of population, capable of being connected to the sewerage service scheme except when excluded by specific council policy, such charge being made in terms of Section 501 of the Local Government Act 1993.

Access charge based on Meter size for 2017/18 is as follows:

20mm	$152.00
25mm	$238.00
32mm	$389.00
40mm	$608.00
50mm	$950.00
80mm	$2,432.00
100mm	$3,800.00
150mm	$8,550.00

Non Residential includes:

(a) Non-residential strata

(b) Small community property

(d) land that belongs to a religious body and is occupied and used in connection with:

(i) a church or other building used or occupied for public worship

(ii) a building used or occupied for the purpose of religious teaching or training

(e) land that belongs to and is occupied and used in connection with a school (being a government school or non-government school within the meaning of the Education Reform Act 1990 or a school in respect of which a certificate of exemption under section 78 of that Act is in force), including:

(i) a playground that belongs to and is used in connection with the school; and

(ii) land that belongs to a public benevolent institution or public charity and is used or occupied by the institution or charity for the purposes of the institution or charity

(f) land that belongs to a public hospital

(g) land that is vested in the Minister for Health, the Health Administration Corporation or the New South Wales Health Foundation

(h) land that is vested in a university, or a university college, and is used or occupied by the university or college solely for its purposes

Usage charge

Per kl usage charge of $2.10 per kl will apply to all Non Residential Sewer customers except excluded by specific Council Policy, such charge being made in accordance with Section 501 of the Local Government Act 1993.

xv Pressure Sewer Scheme – Annual pump maintenance charge (rural residential and villages). An additional sewerage service charge of $155.00 per pump for all premises connected to the sewerage system via a pressure service for the maintenance and replacement of the pump unit as necessary

xvi Domestic Waste Management Service Charge of $315.00 per service on a per occupancy basis per annum for a once weekly service rendered in the centres of population and within the scavenging areas defined as the City of Wagga Wagga and the villages of Ladysmith, Forest Hill, Tarcutta, Oura, Mangoplah, North Wagga and Gumly Gumly, charged in accordance with the provisions of Section 496 of the Local Government Act 1993

xvii Domestic Waste Management Service Charge Rural Residential of $315.00 per service to be applied to all properties utilising a waste collection service managed by Council, but outside Council’s defined waste collection service areas charged in accordance with the provisions of Section 496 of the Local Government Act 1993

xviii Commercial Waste Management Service Charge of $315.00 per occupancy per annum, for a once weekly service rendered in the centre of population and within the scavenging areas defined as the City of Wagga Wagga, and the villages of Ladysmith, Forest Hill, Tarcutta, Oura, Mangoplah, North Wagga and Gumly Gumly, charged in accordance with the provisions of Section 501 of the Local Government Act 1993

xix Domestic Waste Management Service Charge of $32.00 for each parcel of rateable undeveloped land not receiving a service within the scavenging areas of the City of Wagga Wagga, and the villages of Ladysmith, Forest Hill, Tarcutta, Oura, Mangoplah, and Gumly Gumly, such charge being levied in accordance with the provisions of Sections 496 of the Local Government Act 1993

xx Domestic Waste Management Service Charge of $32.00 for each parcel of rateable residential land in the waste collection service areas including Lake Albert and Springvale where Council’s Waste Management collection service is not utilized. This only applies those properties that have been previously charged this rate on their notices prior to June 2012. Such charge being levied in accordance with the provisions of Sections 496 of the Local Government Act 1993

xxi Domestic Waste Management Service Charge of $105.00 for each additional domestic bin, being an additional domestic bin provided over and above the three (3) bins already provided by the service, rendered in the centres of population, and within the scavenging areas defined as the City of Wagga Wagga, and the villages of Ladysmith, Forest Hill, Tarcutta, Oura, Mangoplah, North Wagga and Gumly Gumly, charged in accordance with the provisions of Section 496 of the Local Government Act 1993

xxii Commercial Waste Management Service Charge of $200.00 for each additional commercial bin, being an additional bin provided over and above the bin already provided by the service, rendered in the centres of population and within the scavenging areas defined as the City of Wagga Wagga, and the villages of Forest Hill, Ladysmith, Mangoplah, Tarcutta, Oura, North Wagga and Gumly Gumly, charged in accordance with the provisions of Section 501 of the Local Government Act 1993

xxiii Commercial Waste Management Charge – Small Commercial Strata Properties to be applied to all commercial strata properties with a parcel area of less than 70 square metres not utilising a Council commercial waste service, and capable of using waste service funded by the body corporate - $105.00

xxiv Multi Unit Developments (Non Strata)

Domestic Waste Management Service Charge of $315.00 for each rateable property with an additional bin charge of $105.00 to apply for each additional bin charged in accordance with the provisions of Section 496 of the Local Government Act 1993. For the purposes of Council’s Fees and Charges the definition of Multi-Unit developments (Non Strata) involves the development of two or more residential units on a site at a higher density than general housing development. This reduced charge is available on application to Council, otherwise full Domestic Waste Service Charge of $315.00 applies, per occupancy.

xxv Stormwater Management Service Charges

Stormwater Management Service charges will be applicable for all urban properties (i.e. residential and business) as referenced below with the following exceptions in accordance with the Division of Local Government (DLG) Stormwater Management Service Charge Guidelines dated July 2006:

· Non rateable land

· Crown Land

· Council Owned Land

· Land held under lease for private purposes granted under the Housing Act 2001 or the Aboriginal Housing Act 1998

· Vacant Land

· Rural Residential or Rural Business land not located in a village, town or city

· Land belonging to a charity and public benevolent institutions

(a) Residential Stormwater Management Service Charge of $25.00 per residential property levied in accordance with the provisions of Section 496A of the Local Government Act 1993

(b) Residential Medium/High Density Stormwater Management Service Charge of $12.50 per occupancy: Residential Strata, Community Title, Multiple Occupancy properties (flats and units), and Retirement Village style developments. Subject to a maximum charge of $250.00 per rateable assessment levied in accordance with the provisions of Section 496A of the Local Government Act 1993

(c) Business Stormwater Management Service Charge of $25.00 per business property. Properties are charged on a basis of $25.00 per 350 square metres of land area. Subject to a maximum charge of $250.00 per rateable assessment levied in accordance with the provisions of Section 496A of the Local Government Act 1993

(d) Business Medium/High Density Stormwater Management Service Charge of $5.00 per occupancy - Business Strata and Multiple Occupancy Business properties. Subject to a maximum charge of $250.00 per rateable assessment levied in accordance with the provisions of Section 496A of the Local Government Act 1993

Key Reasons

Sustainable Future Framework – Our Approach to Integrated Planning and Reporting (IP&R)

Integrated Planning and Reporting (IP&R) is a requirement under NSW State legislation which requires councils to prepare a number of plans which provide details on how Council intends to deliver works and services in the short and long term. Council is committed to IP&R and has tailored the legislated approach to create the Sustainable Future Framework (as shown below) which demonstrates Council’s commitment to achieving integration and long term sustainability.

Council’s suite of draft Integrated Planning and Reporting documents have been formulated with consideration to the Community Strategic Plan 2040 – Wagga View previously endorsed by Council as well as the draft Disability Inclusion Action Plan 2017/21. The integration of these documents has also been considered in the preparation of the reports presented as part of the agenda item.

These documents together form a suite of plans focussed on Council’s sustainability into the future.

Public Exhibition and Submissions Received

During the exhibition period Council utilised the following engagement methods to promote the documents and invite submissions from the public

· Public Notices

· Advertisement and Consultation via “Your Say”

· Media Release

· Social Media – Facebook (including boosted posts) and Twitter

· Public display of all documents at the Civic Centre

Submission	Council Officers Response
Request by Wagga Swans AFL Club to have the Anderson Oval Amenities Block upgrade brought forward from 2019/20 to 2018/19	The current amenities schedule gives consideration to the age, condition and utilisation of the existing building assets. The current schedule allows for the Anderson Oval amenities to be refurbished in 2019/20 following the refurbishment of Bolton Park and French’s Fields amenities. When considering the current condition and utilisation of these assets it is recommended that the schedule remain unchanged.
Request for funding - $30,000 for 72 inch ride on lawn mower for Wagga Wagga Polocrosse Club	A combination of Council’s parks staff and contractors mow this location approximately 9 times a year. At this stage, Council officers do not support this request for funding. The applicant is encouraged to submit a grant application during Council’s annual grant process noting that additional funding would be required to be sourced in order to purchase this equipment.
Request for funding - $92,342 for a specialised emergency vehicle with customised body by Wagga Wagga Rescue squad	Council Officers note the valuable service the Wagga Wagga Rescue squad undertakes. Unfortunately, budget constraints do not allow Council to provide any funding for the emergency vehicle. The applicant is encouraged to submit a grant application during Council’s annual grant process, noting however that additional funding would be required from other agencies to support this purchase.
Request by Wagga City Aero Club in regards to the proposed annual landing fee	A review of the Airport Fees and Charges structure was initiated in January 2017, and a number of different approaches were identified to ensure sustainability of the airport. The Fees and Charges structure was intended to be workshopped by the Airport Advisory Committee, including consultation with the industry and stakeholders, before implementation. The delay in establishing the Airport Advisory Committee resulted in that process not being initiated and completed to date. Some elements of the fee structures under consideration were incorporated into the 2017/18 Fees and Charges structure without the explanatory notes that indicated they were subject to stakeholder consultation. It should be noted that all these Fees and Charges are subject to stakeholder consultation.

Workforce Plan 2017/18

During the public exhibition period, minor amendments were made to the Workforce Plan to clearly outline how the Workforce Plan is funded and to make it clear as to whether headcount or FTE (Full Time Equivalent) numbers were being represented. It should be noted that since implementation of the Workforce Plan 2013-2017 a range of trends were identified, including a decrease in the total workforce by approximately 9%. What needs to be recognised as part of this reduction is that in some areas, this will result in a reduced capacity to deliver community outcomes. The continuous improvement program may identify efficiencies that can be implemented to overcome some part of the reduction in capacity however these will generally not support the total capacity reduction.

Fees and Charges 2017/18

Tourism Partner Program

During the public exhibition period, a number of corrections were identified in the Fees and Charges document that relate to fees for Council’s Tourism Partner Program.

Item Number	Fee Name	2016/17 Adopted Fee	2017/18 Public Exhibition Fee	2017/18 Final Proposed Fee
0063	Regional Tourism Partner	$0.00	$825.00	$907.50
0064	Standard Tourism Partner	$800.00	$825.00	$907.50
0065	Tourism Stakeholder	$300.00	$310.00	$341.00
0066	Boutique Retail, Cafes & Accommodation Partner	$0.00	$400.00	$440.00

The 2017/18 Final Proposed Fees for the Tourism Partner Program have already been published as part of the 2017/18 material distributed to potential tourism partners. Over twenty partners have already signed on at the proposed prices.

These corrections have been made and the final version of the 2017/18 Fees and Charges document is attached for adoption.

Multi Unit Developments (Non Strata)

It is proposed to decrease the minimum unit size currently available for the Domestic Waste collection charges for Multi Unit Developments (Non Strata) on application to Council - down from the current minimum units of 20 down to 2 to make available a fairer charging methodology and also promote waste reductions on multi unit developments (non strata) below 20 units.

History

The purpose of having full charge per occupancy was to fairly distribute all Domestic Waste collection and processing costs (recovery costs) across all properties on a per occupancy basis. The Multi-Unit Development (MUD) – Non Strata charge was initially introduced to make available a fairer charging methodology for larger properties with multi units on site – specifically Retirement Homes/Villages. The minimum was set at 20 units specifically to target these types of properties only.

The 20 unit minimum methodology could be seen as restrictive, and penalises those multi-unit properties under 20 units, who are currently charged for a full 3 bin service, irrespective of how many bins are on the property for collection.

By reducing the minimum number of units to two, this will enable all multi - unit owners, upon application to Council, to take advantage by paying only one full domestic waste charge per property and only paying for any additional bins they may require or need. This equates to a fairer user pays methodology, and also could reduce the number of bins issued and paid for by ratepayers.

The reduction in charges are available to ratepayers on application.

Crematorium and Cemeteries

Following the public exhibition period, a number of corrections were identified in the Fees and Charges document that relate to fees for Council’s Crematorium and Cemeteries.

Item Number	Fee Name	2016/17 Adopted Fee	2017/18 Public Exhibition Fee	2017/18 Final Proposed Fee
0565	Exhumation Fee – All Cemeteries	$3,660.00	$3,845.00	$4,000.00
0570	Contract Dig/Hand Dig Surcharge Fee – All Cemeteries	$435.00	$455.00	$750.00

The increased charge for the Exhumation Fee – All Cemeteries is due to a review being undertaken of the costs associated with this activity. Included in the proposed fee is the requirement to pay staff an additional allowance under an industry award condition for this activity. This increase in the proposed fee allows for cost recovery of this activity.

The increased charge for the Hand Dig Surcharge Fee – All Cemeteries is due a review of the costs associated with this activity. This increase in the proposed fee allows for cost recovery of this activity.

These corrections have been made and the final version of the 2017/18 Fees and Charges document is attached for adoption.

Airport Charges

The specific wording in relation to fees charged to airlines has been adjusted since being publicly exhibited to include “does not apply to airlines until agreed with airlines”.

Financial Implications

The development of the 2017/27 Long Term Financial Plan has not been one without its challenges, particularly when presented with an initial deficit position to try to recoup. There have been many reasons for the deficit position initially forecast including the reduction in the Federal Government’s Financial Assistance Grant over the past 3 years; reduction in the rate peg from 1.8% to 1.5% which is not reflective of what it costs councils to do business, along with a reduction in investment income due to the sustained lower interest rates.

This reduction in revenue along with increased expectations from the community in relation to delivering outcomes, building new facilities while still managing a significant asset base, aware that there is a large asset renewal gap will place pressure on Council even more so into the future. It is therefore imperative that Council make well-informed and considered decisions that are sustainable into the future noting that there are limited funds available.

The 2017/27 Long Term Financial Plan is presented to Council for adoption. A balanced budget position is shown for the 10 year period which was achieved through further operating efficiencies, service reviews and expenditure cuts, particularly relating to salaries, utility costs and operating savings as a result Council’s continuous improvement program.

The LTFP is updated and presented to the community and Council on an annual basis. A summary of the 2017/18 budget is shown below:

2017/18 Budget Snapshot:

Operating:

$109.1 million – total operating income budget

$119.8 million – total operating expenditure budget

Capital Works:

$24.0 million - Capital renewals

$17.5 million - New Capital projects

$11.8 million – Capital concepts

$53.3 million – total capital budget

Policy

While not Policy specifically, it is worth highlighting that the suite of documents have been created to meet the requirements set in the Integrated Planning and Reporting Guidelines – March 2013.

The asset management plans have been formulated with consideration to POL 001 Asset Management Policy.

Link to Strategic Plan

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

Risk Management Issues for Council

Potential lack of resources to deliver planned activities detailed in the Combined DP/OP and potential for delays or interruptions to planned works due to external variables.

Internal / External Consultation

Comprehensive internal and external consultation has taken place in the review and development of these plans.

A thorough communication plan was undertaken to ensure the community was advised of the exhibition period and to encourage submissions, including promotion of the exhibition period through Council News and Social Media.

A ‘Your Say’ website was also set up and there were 223 visitors to the website during the exhibition period and 39 visitors downloaded a document or graph on the site.

3361 people viewed the face book video and 728 of those watched it for more than 10 seconds or more.

Link to the Your Say Page http://www.yoursaywagga.com.au/ipr

There were several workshops with Councillors during the development of these documents as highlighted below, along with a range of questions and answers that were provided outside of the workshops held.

6 February 2017

Budget Workshop 1

Topics Discussed:

1. Integrated Planning and Reporting

2. Timeline

3. Recap on LTFP Financial Strategies

4. Key Assumptions

5. Operational Budgets – comparison between 2016/17 and 2017/18

6. Adjustments to date and other efficiencies identified by officers during the budget development process

7. Expenditure (operating and capital) against Community Strategic Plan objectives and by Council function

8. Financial assistance provided to the community

9. Summary of prior year service cuts and adjustments – focus on FTE’s

10. Infrastructure gap and Fit for the Future

11. Capital projects

Councillors in Attendance:

· Cr Greg Conkey OAM (Mayor)

· Cr Dallas Tout (Deputy Mayor)

· Cr Yvonne Braid

· Cr Dan Hayes

· Cr Vanessa Keenan

· Cr Rod Kendall

· Cr Tim Koschel

· Cr Kerry Pascoe

6 March 2017

Budget Workshop 2

Topics Discussed:

1. Timeline

2. Recap on Financial Position

3. Adjustments since Workshop 1

4. Footpaths

5. Potential monetary contribution to PCYC

6. Potential revenue opportunities

Councillors in Attendance:

· Cr Dallas Tout (Deputy Mayor)

· Cr Yvonne Braid

· Cr Dan Hayes

· Cr Vanessa Keenan

· Cr Rod Kendall

10 April 2017

Asset Management Plans

Topics Discussed:

1. Asset Management background

2. Community service levels

3. Technical service levels

4. Funding

Councillors in Attendance:

· Cr Greg Conkey OAM (Mayor)

· Cr Yvonne Braid

· Cr Rod Kendall

· Cr Tim Koschel

Attachments

1.	IPR - Document submissions -2017 - Provided under separate cover
2.	Combined Delivery Program and Operational Plan 1718 - Final - Provided under separate cover
3.	Long Term Financial Plan_1727_Final - Provided under separate cover
4.	Fees and Charges_1718_Final - Provided under separate cover
5.	Buildings Asset Management Plan_Final - Provided under separate cover
6.	Recreational Assets - Asset Management Plan_Final - Provided under separate cover
7 .	Sewer Asset Management Plan_Final - Provided under separate cover
8 .	Stormwater Asset Management Plan_Final - Provided under separate cover
9 .	Transport Asset Management Plan _ Final - Provided under separate cover
10 .	Workforce Plan 17/18_Final - Provided under separate cover

Report submitted to the Ordinary Meeting of Council on Monday 26 June 2017. RP-11

RP-11 Financial Performance Report as at 31 May 2017

Author: Carolyn Rodney

Director: 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 Wagga Wagga City Council’s external investments and performance as at 31 May 2017.

Recommendation

That Council:

a approves the proposed 2016/17 budget variations for the month ended 31 May 2017 and note the balanced budget as presented in this report

b notes 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 Wagga Wagga City Council is satisfactory having regard to the original estimates of income and expenditure and the recommendations made above

c notes details of the external investments as at 31 May 2017 in accordance with section 625 of the Local Government Act 1993

Key Reasons

For the month of May 2017, Wagga Wagga City Council (Council) forecasts an overall balanced budget, which has not changed from the reported balanced budget presented for April 2017.

Council has experienced a negative monthly investment performance for the month of May that is mainly attributable to Council’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 92% of approved budget which is tracking to budget for the end of May (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 96%.

OPERATING EXPENSES

Total operating expenditure is 88% of approved budget which is trending slightly under budget for the full financial year.

CAPITAL INCOME

Total capital income is 36% 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 54% of approved budget. The RIFL Stage 1 contract commitment has been raised for $13M. Excluding this amount the total capital expenditure is 41% of approved budget.

WAGGA WAGGA CITY COUNCIL STATEMENT OF FINANCIAL PERFORMANCE 1 JULY 2016 TO 31 MAY 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)	(55,630,208)	0	(55,630,208)	92%
User Charges & Fees	(23,631,263)	(7,012)	(23,638,275)	(20,657,269)	0	(20,657,268)	87%
Interest & Investment Revenue	(3,406,597)	(695,888)	(4,102,485)	(3,834,980)	0	(3,834,980)	93%
Other Revenues	(3,123,096)	408,014	(2,715,082)	(2,644,595)	0	(2,644,595)	97%
Operating Grants & Contributions	(14,779,516)	(1,224,281)	(16,003,797)	(15,368,582)	0	(15,368,582)	96%
Capital Grants & Contributions	(34,768,294)	(22,641,920)	(57,410,214)	(22,916,462)	0	(22,916,462)	40%
Total Revenue	(140,351,052)	(24,161,087)	(164,512,139)	(121,052,095)	0	(121,052,095)	74%

Expenses
Employee Benefits & On-Costs	42,105,886	52,088	42,157,974	36,986,538	15,268	37,001,806	88%
Borrowing Costs	3,953,083	(157,682)	3,795,402	2,784,768	0	2,784,768	73%
Materials & Contracts	2,722,383	(107,903)	2,614,480	9,928,562	1,161,125	11,089,687	424%
Depreciation & Amortisation	32,405,375	0	32,405,375	29,704,927	0	29,704,927	92%
Other Expenses	37,493,005	3,934,686	41,427,692	24,953,203	2,101,707	27,054,910	65%
Total Expenses	118,679,732	3,721,190	122,400,922	104,357,998	3,278,100	107,636,098	88%

Net Operating (Profit)/Loss	(21,671,319)	(20,439,897)	(42,111,217)	(16,694,098)	3,278,100	(13,415,997)

Net Operating (Profit)/Loss before Capital Grants & Contributions	13,096,975	2,202,023	15,298,997	6,222,364	3,278,100	9,500,464

Cap/Reserve Movements
Capital Exp - Renewals	24,265,446	9,194,289	33,459,735	13,566,093	4,641,133	18,207,227	54%
Capital Exp - New Projects	45,730,456	10,534,056	56,264,512	18,086,140	15,702,879	33,789,019	60%
Capital Exp - Project Concepts	8,264,763	27,020	8,291,783	1,970	124,595	126,565	2%
Loan Repayments	2,603,821	(173,623)	2,430,198	2,227,680	0	2,227,680	92%
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)	(3,146,965)	0	(3,146,965)	156%
Net Movements Reserves	(7,945,724)	(10,103,272)	(18,048,996)	0	0	0	0%
Total Cap/Res Movements	54,076,694	20,439,897	74,516,591	30,734,918	20,468,607	51,203,525	69%

Net Result after Depreciation	32,405,375	0	32,405,375	14,040,821	23,746,707	37,787,528

Add back Depreciation Expense	32,405,375	0	32,405,375	29,704,927	0	29,704,927

Cash Budget (Surplus)/Deficit	(0)	0	(0)	(15,664,106)	23,746,707	8,082,601

Revised Budget Result - Surplus/(Deficit)

$’000s

Original 2016/17 Budget Result as adopted by Council

Total Budget Variations approved as reported to 22 May 2017 Council Meeting

Budget variations for May 2017

Proposed revised budget result for 31 May 2017

The proposed Budget Variations to 31 May 2017 are listed below:

*Budget Variation*	*Amount*	*Funding Source*		*Net Impact* *Fav/ (Unfav)*
*1 – We are an engaged and involved community*
Botanic Gardens Museum Master Plan	$10K		Exhibition Signage ($4K) Willans Hill Museum Salaries ($6K)	Nil
Additional funds of $10K are required to be added to the current $50K Botanic Gardens Museum Master Plan budget, bringing the total budget up to $60K. The additional funds are required due to the original quote being 18 months old, along with surveying costs being more than originally anticipated. It is proposed to fund this variation from existing Museum Exhibition Signage budget savings and Willans Hill Museum Salaries budget due to vacancies.				Nil
*2 – We are a safe and healthy community*
Embellishment of Estella Rise Park	$128K		Section 94 Reserve ($128K)	Nil
Funds are required for the embellishment of Estella Rise Park to complete the works in the suburb of Gobbagombalin. This is a legacy item where the developer paid S94 developer contributions and it was agreed for the developer to complete the embellishment works for the park, resulting in a payment for these works. The works have been undertaken and are in accordance with Council officer’s expectations. It is proposed to fund the variation from Open Space Section 94 Item OS35.				Nil
*SURPLUS/(DEFICIT)*				$0K

Current Restrictions

WAGGA WAGGA CITY COUNCIL
RESERVES SUMMARY
31 MAY 2017
	Approved Changes
	CLOSING BALANCE 2015/16	ADOPTED RESERVE TRANSFERS 2016/17	BUDGET VARIATIONS APPROVED UP TO COUNCIL MEETING 22.05.2017	RECOMM CHANGES for Council Resolution	REVISED BALANCE

Externally Restricted
Developer Contributions	(19,387,519)	1,683,496	1,033,853	128,000	(16,542,169)
Sewer Fund Reserves	(21,286,523)	2,385,453	3,606,841		(15,294,229)
Solid Waste Reserves	(12,803,085)	751,764	391,936		(11,659,386)
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	8,670,460	128,000	(46,097,647)

Internally Restricted
Airport Reserve	(202,674)	(65,492)	(32,583)		(300,749)
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	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	3,453,699	0	(24,079,414)

Total Restricted	(89,483,829)	7,054,608	12,124,160	128,000	(70,177,061)

Investment Summary as at 31 May 2017

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 30/04/2017 $	Closing Balance Invested 31/05/2017 $	May EOM Current Yield %	May EOM % of Portfolio	Investment Date	Maturity Date	Term (mth)
*Short Term Deposits*
Police Credit Union	NR	1,000,000	1,000,000	2.87%	0.93%	6/12/2016	6/12/2017	12
BOQ	BBB+	2,000,000	2,000,000	2.80%	1.85%	7/12/2016	7/07/2017	12
Bank of Sydney	NR	2,000,000	2,000,000	2.75%	1.85%	30/09/2016	29/09/2017	12
CUA	BBB	1,000,000	1,000,000	2.80%	0.93%	9/02/2017	5/01/2018	11
NAB	AA-	1,000,000	0	0.00%	0.00%	25/10/2016	25/05/2017	7
AMP	A	2,000,000	2,000,000	3.00%	1.85%	2/08/2016	2/08/2017	12
BOQ	BBB+	1,000,000	0	0.00%	0.00%	7/11/2016	8/05/2017	6
Bankwest	AA-	2,000,000	2,000,000	2.50%	1.85%	4/04/2017	23/06/2017	3
ME Bank	BBB	2,000,000	2,000,000	2.80%	1.85%	16/12/2016	16/10/2017	10
Bankwest	AA-	3,000,000	0	0.00%	0.00%	2/03/2017	1/05/2017	2
Beyond Bank	BBB+	2,000,000	0	0.00%	0.00%	2/03/2017	31/05/2017	3
CUA	BBB	1,000,000	1,000,000	2.75%	0.93%	3/03/2017	2/03/2018	12
*Total Short Term Deposits*		20,000,000	13,000,000	2.78%	12.03%
*At Call Accounts*
NAB	AA-	809,916	2,620,938	1.50%	2.43%	N/A	N/A	N/A
NAB	AA-	5,431,154	15,442,987	2.19%	14.29%	N/A	N/A	N/A
AMP	A	180,862	181,182	2.15%	0.17%	N/A	N/A	N/A
Beyond Bank	BBB+	147,983	148,133	1.00%	0.14%	N/A	N/A	N/A
CBA	AA-	37,684	44,737	0.00%	0.04%	N/A	N/A	N/A
*Total At Call Accounts*		6,607,598	18,437,977	2.08%	17.06%
*Medium Term Deposits*
RaboBank	A+	1,000,000	1,000,000	5.90%	0.93%	4/06/2012	5/06/2017	60
BOQ	BBB+	1,000,000	1,000,000	6.30%	0.93%	22/08/2012	22/08/2017	60
ING Bank	A-	3,000,000	3,000,000	6.00%	2.78%	24/08/2012	24/08/2017	60
Hume Building Society	NR	1,009,123	1,009,123	4.10%	0.93%	21/08/2014	21/08/2017	36
Banana Coast CU	NR	1,000,000	1,000,000	4.25%	0.93%	3/06/2014	2/06/2017	36
ME Bank	BBB	2,000,000	2,000,000	4.28%	1.85%	2/09/2014	2/09/2019	60
Rabobank	A+	1,000,000	1,000,000	4.10%	0.93%	5/12/2014	5/12/2019	60
Beyond Bank	BBB+	990,000	990,000	3.70%	0.92%	4/03/2015	4/03/2018	36
Beyond Bank	BBB+	990,000	990,000	3.70%	0.92%	11/03/2015	11/03/2018	36
AMP	A	2,000,000	2,000,000	3.10%	1.85%	2/06/2015	2/06/2017	24
AMP	A	1,000,000	1,000,000	3.10%	0.93%	13/07/2015	13/07/2017	24
Newcastle Permanent	BBB	1,000,000	1,000,000	3.00%	0.93%	12/08/2016	12/08/2019	36
Rabobank	A+	1,000,000	1,000,000	3.20%	0.93%	25/08/2016	25/08/2021	60
Newcastle Permanent	BBB	1,000,000	1,000,000	3.00%	0.93%	31/08/2016	30/08/2019	36
Police Credit Union	NR	1,000,000	1,000,000	2.90%	0.93%	8/09/2016	10/09/2018	24
Newcastle Permanent	BBB	2,000,000	2,000,000	3.00%	1.85%	10/02/2017	11/02/2019	24
Westpac	AA-	3,000,000	3,000,000	3.10%	2.78%	10/03/2017	10/03/2022	60
*Total Medium Term Deposits*		23,989,123	23,989,123	3.97%	22.20%
Institution	Rating	Closing Balance Invested 30/04/2017 $	Closing Balance Invested 31/05/2017 $	May EOM Current Yield %	May EOM % of Portfolio	Investment Date	Maturity Date	Term (mth)
*Floating Rate Notes - Senior Debt*
Bendigo-Adelaide	BBB+	1,004,232	1,005,350	BBSW + 93	0.93%	17/09/2014	17/09/2019	60
BOQ	BBB+	2,010,860	2,013,860	BBSW + 110	1.86%	5/08/2014	24/06/2019	58
BOQ	BBB+	1,003,211	1,004,500	BBSW + 107	0.93%	6/11/2014	6/11/2019	60
BOQ	BBB+	1,009,738	1,004,500	BBSW + 107	0.93%	10/11/2014	6/11/2019	60
ME Bank	BBB	1,005,930	1,001,540	BBSW + 100	0.93%	17/11/2014	17/11/2017	36
ME Bank	BBB	1,000,665	1,001,540	BBSW + 100	0.93%	17/11/2014	17/11/2017	36
Teachers Mutual	BBB	1,005,977	1,000,830	BBSW + 105	0.93%	4/12/2014	4/12/2017	36
Newcastle Permanent	BBB	1,006,660	1,001,300	BBSW + 110	0.93%	27/02/2015	27/02/2018	36
Macquarie Bank	A	2,018,867	2,012,520	BBSW + 110	1.86%	3/03/2015	3/03/2020	60
ANZ	AA-	753,232	755,138	BBSW + 82	0.70%	17/04/2015	17/04/2020	60
Heritage Bank	BBB+	1,000,880	1,002,390	BBSW + 115	0.93%	7/05/2015	7/05/2018	36
NAB	AA-	1,005,798	1,002,650	BBSW + 80	0.93%	3/06/2015	3/06/2020	60
Heritage Bank	BBB+	1,000,880	1,002,390	BBSW + 115	0.93%	9/06/2015	7/05/2018	35
CBA	AA-	1,005,672	1,008,670	BBSW + 90	0.93%	17/07/2015	17/07/2020	60
Westpac	AA-	1,004,990	1,008,010	BBSW + 90	0.93%	28/07/2015	28/07/2020	60
Bendigo-Adelaide	BBB+	1,008,260	1,002,430	BBSW + 110	0.93%	18/08/2015	18/08/2020	60
Credit Suisse	A	1,008,970	1,004,150	BBSW + 105	0.93%	24/08/2015	24/08/2018	36
Bendigo-Adelaide	BBB+	1,008,805	1,002,430	BBSW + 110	0.93%	28/09/2015	18/08/2020	59
Westpac	AA-	2,007,856	2,016,020	BBSW + 90	1.87%	30/09/2015	28/07/2020	58
Suncorp-Metway	A+	1,010,124	1,014,480	BBSW + 125	0.94%	20/10/2015	20/10/2020	60
Westpac	AA-	4,040,560	4,052,600	BBSW + 108	3.75%	28/10/2015	28/10/2020	60
AMP	A	1,816,758	1,820,124	BBSW + 110	1.68%	11/12/2015	11/06/2019	42
CBA	AA-	1,012,750	1,016,540	BBSW + 115	0.94%	18/01/2016	18/01/2021	60
BOQ	BBB+	1,002,927	1,004,970	BBSW + 100	0.93%	5/02/2016	5/02/2018	24
Rabobank	A+	2,050,912	2,042,320	BBSW + 150	1.89%	4/03/2016	4/03/2021	60
Newcastle Permanent	BBB	1,008,261	1,011,280	BBSW + 160	0.94%	22/03/2016	22/03/2019	36
CUA	BBB	2,022,356	2,023,200	BBSW + 160	1.87%	1/04/2016	1/04/2019	36
ANZ	AA-	1,015,298	1,018,790	BBSW + 118	0.94%	7/04/2016	7/04/2021	60
Suncorp-Metway	A+	1,014,257	1,019,340	BBSW + 138	0.94%	21/04/2016	12/04/2021	60
AMP	A	1,019,894	1,013,150	BBSW + 135	0.94%	24/05/2016	24/05/2021	60
Westpac	AA-	1,017,290	1,012,810	BBSW + 117	0.94%	3/06/2016	3/06/2021	60
CBA	AA-	1,016,236	1,019,010	BBSW + 121	0.94%	12/07/2016	12/07/2021	60
ANZ	AA-	2,034,260	2,026,600	BBSW + 113	1.88%	16/08/2016	16/08/2021	60
BOQ	BBB+	1,510,874	1,510,080	BBSW + 117	1.40%	26/10/2016	26/10/2020	48
NAB	AA-	1,007,027	1,011,940	BBSW + 105	0.94%	21/10/2016	21/10/2021	60
Teachers Mutual	BBB	1,502,300	1,505,340	BBSW + 140	1.39%	28/10/2016	28/10/2019	36
Bendigo-Adelaide	BBB+	1,007,974	1,002,940	BBSW + 110	0.93%	21/11/2016	21/02/2020	39
Westpac	AA-	1,007,540	1,011,880	BBSW + 111	0.94%	7/02/2017	7/02/2022	60
ANZ	AA-	1,007,390	1,004,680	BBSW + 100	0.93%	7/03/2017	7/03/2022	60
CUA	BBB	753,432	752,070	BBSW + 130	0.70%	20/03/2017	20/03/2020	36
Heritage Bank	BBB+	0	601,146	BBSW + 130	0.56%	4/05/2017	4/05/2020	36
*Total Floating Rate Notes - Senior Debt*		50,749,904	51,345,508		46.95%
*Managed Funds*
NSW Tcorp	NR	1,292,843	1,301,899	0.70%	1.20%	17/03/2014	1/03/2022	95
*Total Managed Funds*		1,292,843	1,301,899	0.70%	1.20%
TOTAL CASH ASSETS, CASH EQUIVALENTS & INVESTMENTS		102,639,468	108,074,507	2.70%	100.00%
LESS: RIVERINA REGIONAL LIBRARY (RRL) CASH		2,594,187	2,394,452
TOTAL WWCC CASH ASSETS, CASH EQUIVALENTS & INVESTMENTS		100,045,281	105,680,055

Wagga Wagga City Council’s portfolio is dominated by Floating Rate Notes (FRN’s) at approximately 48% across a broad range of counterparties. Cash equates to 17% of Council’s portfolio with Term Deposits around 34% 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:

During May, rating agency Standards & Poor’s (S&P) downgraded credit ratings for 23 banks. The two key downgrades were Bank of Queensland (BoQ) and Bendigo-Adelaide Bank, changing credit ratings from A- to BBB+. The downgrade of these two banks has resulted in the BBB/NR rating allocation being near full capacity. Council has 12.54% of its portfolio invested in these two banks. Council staff will continue to be mindful of these allocation capacities when investing funds in the future.

Investment Portfolio Balance

Wagga Wagga City Council’s investment portfolio balance has increased from the previous month’s balance, up from $100.0M to $105.7M. This is reflective of the fourth quarter rates instalment being due on 31 May 2017.

MONTHLY INVESTMENT MOVEMENTS

Redemptions/Sales – Council redeemed the following investment securities during May 2017:

Institution and Type	Amount	Investment Term	Interest Rate	Comments
NAB Term Deposit	$1M	7 months	2.74%	This term deposit was redeemed due to poor reinvestment rates with NAB.
Bank of Queensland Term Deposit	$1M	6 months	2.80%	This term deposit was redeemed for cashflow purposes.
Bankwest Term Deposit	$3M	2 months	2.50%	This term deposit was redeemed for cashflow purposes.
Beyond Bank Term Deposit	$2M	3 months	2.65%	This term deposit was redeemed to ensure continued compliance with Council’s investment policy (due to the recent downgrade of certain financial institutions).

New Investments – Council purchased the following investment securities during May 2017:

Institution and Type

Amount

Investment

Term

Interest

Rate

Comments

Heritage Bank Floating Rate Note

$600K

3 years

BBSW + 130

Council’s independent Financial Advisor CPG, advised that this Floating Rate Note represented good value. Council originally requested a $1M security, however with high demand for this offer, Council was only allocated a $600K parcel.

Rollovers – Council did not rollover any investment securities during May 2017.

MONTHLY PERFORMANCE

Interest/growth/capital gains for the month totaled $247,738 that compares unfavourably with the budget for the period of $315,584 – under performing budget for the May month by $67,846. This is mainly attributable to Council’s Floating Rate Note (FRN) portfolio having a slight decline in growth for the May period. It should be noted that many of these investments continue to trade at a premium.

The capital market value of these FRN 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.

It is also important to note that Council’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, Council 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.

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 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* (+1.84%pa), Council’s investment portfolio in total returned 2.70% for April. Short term deposits returned 2.78%. 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.

Report by Responsible Accounting Officer

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 Investments Policy adopted by Council on 26 August 2013.

Carolyn Rodney

Responsible Accounting Officer

Policy

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.

Link to Strategic Plan

Community Leadership and Collaboration

Objective: We have strong leadership

Outcome: We are accountable and transparent

Risk Management 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.

Applicant	Aviagen Australia Pty Ltd
Owner	Aviagen Australia Pty Ltd
Development Cost	$12 million
Development Description	The proposal is for a pedigree poultry import facility incorporating one new purpose designed building, ancillary structures, servicing systems, all weather internal road and fencing. The proposed facility will be a licenced quarantine facility subject to the provisions of the Biosecurity Act 2015.

1.	DA17/0140 - S79C Assessment Report - Provided under separate cover
2 .	DA17/0140 - Overall Proposed Site Plan - Provided under separate cover
3 .	DA17/0140 - Proposed Site Plan detail - Provided under separate cover
4 .	DA17/0140 - Proposed Floor Plan - Provided under separate cover
5 .	DA17/0140 - Proposed Elevations - Provided under separate cover
6 .	DA17/0140 - Site Drainage Plan - Provided under separate cover

Applicant	Daniel Gorostiaga
Owner	D. Gorostiaga and M. Gorostiaga
Development Cost	$9,000
Development Description	Demolish an existing shed (3m x 4m) Construction of a new larger shed (8m x 4m) in the same location as the existing smaller shed.

Applicant	Matt Clarke
Owner	Matt Clarke
Development Cost	$100,000
Development Description	The application is for the construction of a single storey rear extension with attached garage and minor extension to the front veranda and a 9m x 7m detached shed to the rear fronting the Laneway.

1 ⇩.	DA17/0100 Section 79C Report
2.	DA17-0100 - Extension Plans - Provided under separate cover
3.	DA17-0100 - Shed Plans - Provided under separate cover
4.	DA17-0100 - Statement of Environmental Effects - Provided under separate cover
5.	DA17-0100 - Variation Justification - Provided under separate cover

1.	DA17/0209 Section 79C Report - Provided under separate cover
2.	DA17/0209 Plans - Provided under separate cover

Options for Contributions
Funding Source	Impact
Borrowings of $364,247	$471,717 total repayment ($364,247 principal and $107,470 interest). $47,172 annual repayments over 10 years, commencing in 2019/20. A reduction in services, as outlined below. NB: LTFP borrowings rate assumptions: 5% over 10 years