AGENDA AND BUSINESS PAPER

 

 

Ordinary Meeting of Council

 

 

 

To be held on
Monday

27 November 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


NOTICE OF MEETING

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 27 November 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 James Bolton

General Manager

 


WAGGA WAGGA CITY COUNCILLORS

 

 

Mayor

Councillor Greg

Conkey OAM

Deputy Mayor

Councillor Dallas Tout

Councillor Yvonne Braid

Councillor Paul Funnell

Councillor Dan Hayes

Councillor Vanessa Keenan

Councillor Rod Kendall

Councillor Tim Koschel

Councillor Kerry Pascoe

 

 

 

 

 

 

 

 

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

 

 

 

 


Reports submitted to the Ordinary Meeting of Council to be held on Monday 27 November 2017.

Ordinary Meeting of Council AGENDA AND BUSINESS PAPER

Monday 27 November 2017

ORDER OF BUSINESS:

CLAUSE               PRECIS                                                                                            PAGE

PRAYER                                                                                                                       2

ACKNOWLEDGEMENT OF COUNTRY                                                                          2

APOLOGIES                                                                                                                 2

CONFIRMATIONS OF MINUTES

CM-1           Extraordinary Council Meeting - 13 October 2017                    2

CM-2           Ordinary Council Meeting - 23 October 2017

DECLARATIONS OF INTEREST                                                                                    2

Motions Of Which Due Notice Has Been Given

NOM-1         NOTICE OF MOTION - Disabled access to Waggas waterways  5

NOM-2         NOTICE OF MOTION - Change to Payment of Expenses and Provision of Facilities to Councillors Policy POL 025                                7

Reports from Staff

RP-1            DA16/0104 INTENSIVE PLANT AGRICULTURE, RURAL INDUSTRY, EARTHWORKS ON FLOODPLAIN, FARM BUILDINGS, ROADSIDE STALL, FOOD & DRINK PREMISES, SIGNAGE AND NEW ACCESS, 103 TRAVERS STREET, WAGGA WAGGA, LOTS 4 -6 DP 7050 & LOT 5 DP 848787                        9

RP-2            Planning Proposal LEP17/0002 to amend the Wagga Wagga Local Environmental Plan 2010                                                                 15

RP-3            2016/17 Financial Statements - Presentation from NSW Audit Office                                                                                                                24

RP-4            Financial Performance Report as at 31 October 2017           43

RP-5            COUNCIL MEETING DATES JANUARY 2018 to DECEMBER 2018          62

RP-6            Delegation of authority to the Mayor                                      64

RP-7            DELEGATION OF AUTHORITY TO THE GENERAL MANAGER                70

RP-8            Reinstatement of Airport Fees and Charges                           74

RP-9            Strategic Planning Update                                                            94

RP-10          APPLICATIONS FOR SUBSIDY FOR WASTE DISPOSAL FOR CHARITABLE ORGANISATIONS                                                                                  101

 

 

 

RP-11          PROPOSED ASSIGNMENT OF LEASE - AUSTRALIAN LONG DISTANCE OWNER DRIVERS ASSOCIATION INCORPORATED TO THE TARCUTTA TRANSPORT AND FARMING MUSEUM INCORPORATED                                                   104

RP-12          Submissions received for the Public Art Plan and Public Art Policy POL109 and Petition - Public Art                                     109

RP-13          New Policy - POL 048 Street Tree Policy                                    124

RP-14          LANDSCAPING COUNCIL MANAGED ROUNDABOUTS AND VERGES  132

RP-15          VILLAGE SEWER PROPOSAL - SAN ISIDORE                                       145

RP-16          RIVER SAFETY                                                                                      153

RP-17          POL 033 - WEED MANAGEMENT POLICY                                              165

RP-18          POL 046 - PROCESSING DEVELOPMENT APPLICATIONS LODGED BY COUNCILLORS, STAFF AND INDIVIDUALS OF WHICH A CONFLICT OF INTEREST MAY ARISE, OR ON COUNCIL OWNED LAND POLICY                          174

RP-19          POL 079 RISK MANAGEMENT POLICY                                                  185

RP-20          Community Engagement for Public Exhibition of Council Documents                                                                                         195

RP-21          Responses to Questions / Business with Notice                     200

RP-22          Section 356 Donation - Australian Clay Target Association (ACTA)                                                                                                                202

RP-23          Section 356 Donation - Tiny Tykes                                                209

RP-24          PROPOSED EASEMENT FOR DRAINAGE OVER LOT 2 DP 702230 AT BOOROOMA                                                                                          212

RP-25          SALE OF WIRADJURI CRESCENT PROPERTIES                                   216

RP-26          Mary Kidson Play Session Hall                                                    218

RP-27          Update Regarding the 2017 Sale of Land for Unpaid Rates 222    

QUESTIONS/BUSINESS WITH NOTICE                                                                     226

Confidential Reports

CONF-1       RFT2018/04 WINNING AND CRUSHING OF GRAVEL                             227

CONF-2       RFT2017/05 Supply of One Garbage Landfill Compactor      228

CONF-3       RFT2018/07 BULK FUEL SUPPLY                                                          229

CONF-4       RFT2018/08 DESIGN AND CONSTRUCT RURAL FIRE SERVICE SHED TARCUTTA                                                                                                               230

CONF-5       HOOK LIFT TRUCK - OPTIONS FOR CONTINUING SERVICE AT REGIONAL TRANSFER STATIONS                                                                           231

CONF-6       Major Events Advisory Panel                                                      232

CONF-7       WAGGA WAGGA CITY COUNCIL EXPRESSIONS OF INTEREST FOR GRAZING LICENCE AT GREGADOO WASTE MANAGEMENT CENTRE                 233

CONF-8       PROPOSED GRAZING LICENCE AGREEMENT - SURPLUS SEWER LAND 234  

PRAYER

 

 

ACKNOWLEDGEMENT OF COUNTRY

 

 

APOLOGIES

 

 

Confirmation of Minutes

CM-1              Extraordinary Council Meeting - 13 October 2017       

 

Recommendation

That the Minutes of the proceedings of the Extraordinary Council Meeting held on 13 October 2017 be confirmed as a true and accurate record.

 

 

Attachments  

1.

Minutes - Extrardinary Council Meeting - 13 October 2017

2

 

 

CM-2              Ordinary Council Meeting - 23 October 2017       

 

Recommendation

That the Minutes of the proceedings of the Ordinary Council Meeting held on 23 October 2017 be confirmed as a true and accurate record.

 

 

Attachments  

1.

Minutes - Ordinary Council Meeting - 23 October 2017

2

 

 

DECLARATIONS OF INTEREST

 


Report submitted to the Ordinary Meeting of Council on Monday 27 November 2017.                                                NOM-1

 

Motions Of Which Due Notice Has Been Given

NOM-1           NOTICE OF MOTION - Disabled access to Wagga’s waterways

Author:          Councillor Dan Hayes

 

Analysis:

This Notice of Motion is being presented to Council to explore options and funding sources for improving access to our waterways for people with a disability.

 

 

 

Recommendation

That Council staff bring forward a report on options to improve and fund the accessibility to Wagga Wagga’s waterways to increase access and opportunity for sporting and recreation use.

 

 

Report

I present this Notice of Motion to:

 

·       Improve access to Wagga Wagga’s significant attractions such as Lake Albert, Murrumbidgee River, and Wollundry Lagoon is important for residents with a disability so they can make more use of these attractions.

·       Further improve upon Wagga's attractiveness for inclusive tourism, which is a considerable part of the travel and recreation market.

 

Financial Implications

N/A

Policy and Legislation

Disability Inclusion Action Plan (DIAP)

Recreation and Open Space and Community Strategy (ROSC)

Link to Strategic Plan

Safe and Healthy Community

Objective: We have access to health and support services that cater for all our needs

Outcome: Our health and support services meet the needs of our community

Risk Management Issues for Council

No specific issues identified.

Internal / External Consultation

N/A


Report submitted to the Ordinary Meeting of Council on Monday 27 November 2017.                                                NOM-2

 

NOM-2           NOTICE OF MOTION - Change to Payment of Expenses and Provision of Facilities to Councillors Policy POL 025

Author:          Councillor Dan Hayes

 

Analysis:

This Notice of Motion is being presented to Council to change the requirement for Councillor reports after attendance at a conference, seminar, training course or workshop.

 

 

Recommendation

That Council:

a       bring forward a report on options to change Section 3.6.2.6 of the Payment of Expenses and Provision of Facilities to Councillors Policy (POL 025) which states that Councillors attendance at conferences, seminars, training courses or workshops “may be the subject of a report to Council” to a compulsory requirement to provide a report to Council

b       create a template for these reports

c        explore possibilities to ensure reports are presented to Council in an Ordinary Meeting

 

Report

I present this Notice of Motion to:

 

·      Ensure residents are aware of the outcomes and issues of attendance at conferences, seminars, training courses and workshops by Councillors.

·      Improve the learning outcomes for all Councillors through sharing knowledge and information gained at these events.

 

Financial Implications

N/A

Policy and Legislation

Payment of Expenses and Provision of Facilities to Councillors Policy (POL 025)

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

N/A

  


Report submitted to the Ordinary Meeting of Council on Monday 27 November 2017.                                                   RP-1

 

Reports from Staff

RP-1               DA16/0104 INTENSIVE PLANT AGRICULTURE, RURAL INDUSTRY, EARTHWORKS ON FLOODPLAIN, FARM BUILDINGS, ROADSIDE STALL, FOOD & DRINK PREMISES, SIGNAGE AND NEW ACCESS, 103 TRAVERS STREET, WAGGA WAGGA, LOTS 4 -6 DP 7050 & LOT 5 DP 848787 

Author:          Camilla Rocks 

Director:       Adrian Butler

         

Analysis:

The report is for a development application and is presented to Council for determination. The application has been referred to Council on request of the General Manager due to the potential impacts on Council’s sewer infrastructure, proximity to TOLL, the removal of the dwelling (due to flooding) and tourism initiative / proximity to Riverside.

 

 

Recommendation

That Council approve DA16/0104 for Intensive Plant Agriculture, Rural Industry, Earthworks on Floodplain, Farm Buildings, Roadside Stall, Food & Drink Premises, Signage and New Access at 103 Travers Street WAGGAWAGGA NSW 2650 subject to the conditions outlined in the Section 79C Assessment Report for DA16/0104.

 

Development Application Details

 

Applicant

Michael Cashen

Owner

Michael Cashen, Kylie Cashen

Development Cost

$450,000

Development Description

This proposal is for the development of an existing vacant rural allotment for the purpose of a “pick your own” strawberry farm and related ancillary development and infrastructure.

 

The proposal includes the following elements:

·      Use of the site for Intensive Plant Agriculture (hydroponic strawberries)

·      Use of the site for a Rural Industry and construction of a processing shed and ancillary staff facilities as well as ancillary farm buildings

·      Earthworks to create a building pad

·      Roadside stall for the sale of strawberries and related products

·      Cafe

·      Signage

·      Vehicle movement areas and car parking, landscaping and pathways

Report

Key Issues

1.      Flood prone land outside the levee bank:

2.      Site is high to very high hazard floodprone land

3.      Depth of flood up to 2m across the site, low velocity

4.      Compatibility of the use with existing adjoining land uses (sewage treatment plant and transport depot)

5.      Proximity to Sewage Treatment Plant –The Department of Urban Affairs and Planning’s Circular E3 — Guidelines for buffer areas around sewage treatment plants (STP) recommended buffer zones of at least 400 metres surrounding sewage treatment plants. A “Best Practice Odour Guideline” has since been drafted by the EPA which, although not legally enforceable, encourages the maintenance of existing separation distances. Main building is proposed at approx. 320m from plant

6.      Risk to Council of allowing development within the separation distance with regard to odour incidents at the STP and complaints from café and farm patrons

7.      Previous use of adjacent land for landfill may have led to contamination of the site

8.      Visitor parking cannot enter and leave the site in a forward direction

9.      Commercial premises are prohibited in the RU1 zone

 

Assessment

·        The proposal is defined under the standard definitions contained in the Wagga Wagga Local Environmental Plan 2010 (LEP) as Intensive Plant Agriculture, Rural Industry, Earthworks, Farm Buildings, Roadside Stall, Food & Drink Premises

·        Under the provisions of the LEP, the subject site is within the RU1 General Rural zone and SP2 (Sewage Treatment Plant) zone.

·        The proposal is generally consistent with the RU1 objectives because the development will maintain and enhance the natural resource base, the various agricultural activities will encourage diversity in primary industry enterprises and systems appropriate for the area and will maintain the rural landscape character of the land. The lot is existing and no subdivision is proposed which would fragment or alienate resource lands.

·        The proposal avoids the land that is subject to the SP2 zone and that area is intended to remain undeveloped as per existing.

·        The application seeks approval under Clause 5.3 of the LEP – Development Near Zone Boundaries, for the use of part of the development for a cafe. Under the provisions, commercial premises are prohibited in the RU1 zone. The site is adjacent to land in the RE2 Private Recreation zone. Restaurants and cafes are permitted in the RE2 zone with consent. It is considered that the proposed cafe would generally be compatible with the objectives, as outlined in the 79C report attached under separate cover. Alternately, Council could request that the proponent make a Planning Proposal for a special provision over the site to address the prohibition.

 

·        The site is outside the city levee bank system and in a high hazard flood prone area.  The provisions allow for development on land that is compatible with the land’s flood hazard. The agricultural component is not likely to result in unsustainable social and economic costs to the community as a consequence of flooding. Access to the site is cut once the 20yr flood peak is reached.

·        There is a groundwater bore existing on the property. The development proposal indicates that groundwater will be utilised for the property, in compliance with existing licencing. Due to the location adjacent to former landfill site, there is concern that the groundwater is contaminated therefore it is recommended that any consent be conditional on the groundwater being excluded from use on food products.

·        The site investigation concluded that the soil on site is not contaminated and is suitable for residential use with limited consumption of fruit and vegetables grown in the soil but not suitable for the keeping of poultry.

·        The proposed crop may be subject to contamination from STP aeration processes.

·        Proposed signage has not been detailed however locations of signs as submitted is considered acceptable subject to further details being submitted prior to release of Construction Certificate.

·        The Development Application was notified and advertised in accordance with the DCP provisions and no submissions were received.

·        The development is consistent with relevant provisions of the Wagga Wagga Development Control Plan 2010.

·        The proposed development may impact on the operation of the Sewage Treatment Plant (STP), owned by Wagga Wagga City Council, adjacent to the site if patrons make complaints about offensive odours or noise. An odour report commissioned by Council in 2010 states that the odour level in the vicinity of the main building and plantation are below acceptable limits.

·        The proposed development may impact on the operation of the Transport Depot adjacent to the site if patrons make complaints about offensive noise.  The Transport Depot operates 24hours a day/7 days a week.

·        Whilst the proposed parking arrangement is technically non-compliant with DCP but given the nature of Billagha Street, considered appropriate.

·        The site is a rural site that is not of sufficient size to support a dwelling or a traditional primary industry. It is located in a precinct that has been identified as a tourist destination due to the existing golf centre, wetlands and proximity to the Murrumbidgee River.

·        The proposed “pick your own” strawberry farm is the only farm of its kind in the LGA and has recreational and social benefits for the population.

 

Reasons for Approval

1.      The proposed development is consistent with the objectives of Clause 5.3 of the Wagga Wagga Local Environmental Plan 2010 and the consent authority is satisfied that the development is not inconsistent with the objectives for development in the RU1 and RE2 zones and the carrying out of the development is desirable due to compatible land use planning, infrastructure capacity and other planning principles relating to the efficient and timely development of land;

2.      The proposed development is consistent with the objectives contained within Part 7 of the Wagga Wagga Local Environmental Plan 2010 relating to additional local provisions;

 

3.      The objectives of Sections 2, 4 and 8 of the Wagga Wagga Development Control Plan 2010 (the DCP)  are satisfied by the proposed development;

4.      For the abovementioned reasons it is considered to be in the public interest to approve this development application.

 

Site Location

The site, being Lots 4, 5 and 6 in Deposited Plan 7050 and Lot 5 in Deposited Plan 848787, is known as 103 Travers Street, Wagga Wagga. The site is an irregular shape, with a narrow access handle to Travers Street. It is approximately 14.2 hectares in size. It is situated on the south-western corner of Narrung and Billagha Streets. Billagha Street is a rural type road, sealed but without kerb and guttering.

 

Access to the site is from Billagha Street. The site has an informal access to Travers Street however this access will not be formally utilised by the public as it does not meet Australian Standards for sightlines. The site is bordered by Billagha Street to the east, Council land to the west, Narrung Street to the north and the city levee bank to the south.

 

The site is relatively flat, with a slight rise to the north. The main flood levee bank is located along the southern boundary of the site.

 

The site has historically been in use as agricultural land. It is a remnant part of a 1912 subdivision. There is no dwelling on the land. 

 

Land to the north and west of the site is Council owned and partly used for the city’s main sewerage treatment plant. The site opposite the subject site to the east is a former landfill site now in use as a recreation facility, also Council owned. Land to the south on the southern side of the levee bank is a transport depot. There are several small rural residential lots west of the Travers Street handle.

 

 

Financial Implications

N/A

Policy

Wagga Wagga Local Environmental Plan 2010

Wagga Wagga Development Control Plan 2010

 

Link to Strategic Plan

The Environment

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

Outcome: We look after and maintain our community assets

 

Risk Management Issues for Council

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.

 

Approval of the café (sensitive receptor) inside the recommended separation distance from the Sewage Treatment Plant (STP) may result in the NSW Environmental Protection Authority receiving complaints about odour from the STP, resulting in a fine and/or requirement for upgrade of the plant.

Internal / External Consultation

See attached s79C report for details of all consultation.

 

Attachments  

 

1.

DA16/0104 - 79C Assessment Report  - Provided under separate cover

 

2.

DA16/0104 - Plans - Provided under separate cover

 

3.

DA16/0104 - Statement of Environmental Effects - Provided under separate cover

 

 

 


Report submitted to the Ordinary Meeting of Council on Monday 27 November 2017.                                                   RP-2

 

RP-2               Planning Proposal LEP17/0002 to amend the Wagga Wagga Local Environmental Plan 2010

Author:          Crystal Golden 

Director:       Natalie Te Pohe

         

Analysis:

The purpose of this Planning Proposal is to rezone a portion of 6 Belmore Place, Tatton from R5 Large Lot Residential to R1 General Residential and to remove minimum lot size provisions to facilitate an additional R1 General Residential lot.

 

 

Recommendation

That Council:

a       support the planning proposal to amend the Wagga Wagga Local Environmental Plan 2010

b       submit the planning proposal to the Department of Planning and Environmental for Gateway Determination

c        adopt the planning proposal to amend the Wagga Wagga Local Environmental Plan 2010 if no submissions are received

d       receive a further report if submissions are received during the exhibition period

i         addressing any submissions made in respect of the planning proposal

ii        proposing adoption of the planning proposal unless there are any recommended amendments deemed to be substantial and requiring a further public exhibition period

 

Report

An application and planning proposal has been received for 6 Belmore Place, Tatton as illustrated in Figure 1.

 

Figure 1, Site Location

The Planning Proposal has been prepared by Blueprint Planning and Development on behalf of the landowner to rezone land for R1 General Residential purposes and to remove the minimum lot size for part of 6 Belmore Place, Tatton. The amendment will provide a more conventional zone boundary for subdivision purposes and retain a rural lifestyle block containing the existing dwelling.

 

The proposal will result in amendments to the Wagga Wagga Local Environmental Plan 2010 land zoning map and minimum lot size map.

 

The proposal intends to:

 

·        rezone a small portion of the lot fronting Brindabella Drive from R5 large lot residential land to R1 general residential

·        rezone a small portion of the lot from R1 general residential to R5 large lot residential to align with the proposed rural lifestyle block boundary

 

Amendments will also occur to the minimum lot size map with zero lot size provisions applying to land proposed to be rezoned to R1 general residential and 0.2 hectare lot size provisions applying to land proposed to be rezoned to R5 large lot residential.

 

A more detailed description of the proposal with supporting information is attached under separate cover.

 

The proposal will result in amendments to the Wagga Wagga Local Environmental Plan 2010 land zoning map and minimum lot size map. The land zoning and minimum lot size proposed is shown in the maps below:

 

Figure 2: Proposed Land Use Zone Changes

 


Figure 3: Proposed Minimum Lot Size Changes


The proposal is supported for the following reasons:

 

·        The proposed amendment is a minor realignment of the existing zone and minimum lot size boundaries.

·        The proposed amendment will be compatible with the existing land use pattern and urban fabric along Brindabella drive as illustrated on Figures 2 and 3.

·        It is consistent with relevant Section 117 Directions.

·        The investigation of the subject land provided with the application is sufficient to support the planning proposal with no further studies required.

·        There is sufficient information to enable Council to support the planning proposal and forward it to the Department of Planning and Environment seeking a Gateway Determination.

 

To comply with the NSW Department of Planning and Environment guidelines and to support the planning proposal, council staff have prepared a proposed timeline and exhibition mapping.

 

Financial Implications

N/A

Policy and Legislation

·        Environmental Planning and Assessment Act 1979

·        Wagga Wagga Local Environmental Plan 2010

Link to Strategic Plan

The Environment

Objective: We plan for the growth of the city

Outcome: We have sustainable urban development

Risk Management Issues for Council

No specific issues identified.

Internal / External Consultation

Consultation with Council’s Planning Section was undertaken via internal referral.

 

Community consultation will be undertaken as required by the Gateway Determination.

 

Attachments  

 

1.

Planning Proposal - LEP2017/0002 - 6 Belmore Place, Tatton - Provided under separate cover

 

2.

Planning Proposal - LEP2017/0002 - Proposed Minimum Lot Size

 

3.

Planning Proposal - LEP2017/0002 - Proposed Timeline

 

  


Report submitted to the Ordinary Meeting of Council on Monday 27 November 2017.                                                                          RP-2

 

 


Report submitted to the Ordinary Meeting of Council on Monday 27 November 2017.                                                                          RP-2

 

 


Report submitted to the Ordinary Meeting of Council on Monday 27 November 2017.                                                   RP-3

 

RP-3               2016/17 Financial Statements - Presentation from NSW Audit Office

Author:          Carolyn Rodney

Director:       Natalie Te Pohe

         

Analysis:

Council resolved to sign the 2016/17 Financial Statements at the 23 October 2017 Council Meeting, enabling Council officers to lodge the financial statements with the Office of Local Government (OLG) prior to the 31 October 2017 due date.

 

Council’s external auditors, NSW Audit Office have completed their Auditor’s Report, and have provided this to Council for their information. Representatives from NSW Audit Office will be presenting to Council at this meeting.

 

 

Recommendation

That Council:

a       note that no public submissions were received regarding the draft Financial Statements for the year ended 30 June 2017

b       receive the Audited Financial Statement, together with the Auditor’s Reports on the Financial Statements for the year ended 30 June 2017

c        receive a presentation from Council’s external auditors, NSW Audit Office

 

Report

The Audit Reports for the 2016/17 Financial Statements have now been received and are presented in accordance with section 419 (1) of the Local Government Act 1993.

 

Representatives from Council’s external auditors, NSW Audit Office will be making a presentation on the 2016/17 Financial Statements and will be available to answer any questions from Councillors.

 

Council has provided public notice that the Financial Statements and Auditor’s Reports will be presented at this meeting in accordance with section 418 (3) of the Local Government Act 1993 and has invited public submissions on the audited financial statements, of which no submissions were received.

 

Financial Implications

Council’s financial performance for the 2016/17 financial year has improved in comparison to the previous financial year’s result. The financial statements show a net operating surplus of $32.6M (including capital grants and contributions) which compares favourably to the 2015/16 result of $4.26M surplus which is mainly due to the $23.5M increase in grants and contributions ($5.9M additional for operating and $17.6M additional in capital). The main contributor to the increase in the capital grants was the $20.3M received for the Bomen Stage 1 Roadworks project.

 

 

As of 30 June 2017 Council held $35.7M in internal reserves, an increase of $4.6M on the previous year. The increase has been mainly due to the following:

 

·        Grant Commission Reserve – $5M received for the prepayment of the Financial Assistance Grant relating to the 2017/18 financial year

 

·        Fit for the Future Reserve – an additional $2.1M has been transferred to this reserve, bringing the balance up to $3.03M. Council’s Fit for the Future submission notes an annual target of identifying efficiencies of $800K and also additional operating income of $300K for asset renewals. A detailed program of priority works will be established during the 2017/18 financial year.

Policy

Local Government Act 1993

413 Preparation of Financial Reports

 (1) A council must prepare financial reports for each year, and must refer them for audit as soon as practicable (having regard to the requirements of section 416 (1)) after the end of that year.

Note : Under section 416 (1), a council's financial reports for a year must be prepared and audited within 4 months after the end of the year concerned, and under section 428 (2) (a) the audited financial reports must be included in the council's annual report.

 (2) A council's financial reports must include:

(a) a general purpose financial report, and

(b) any other matter prescribed by the regulations, and

(c) a statement in the approved form by the council as to its opinion on the general purpose financial report.

 (3) The general purpose financial report must be prepared in accordance with this Act and the regulations and the requirements of:

(a) the publications issued by the Australian Accounting Standards Board, as in force for the time being, subject to the regulations, and

(b) such other standards as may be prescribed by the regulations.

 

418   Public notice to be given of presentation of financial reports

(1)  As soon as practicable after a council receives a copy of the auditor’s reports:

(a)  it must fix a date for the meeting at which it proposes to present its audited financial reports, together with the auditor’s reports, to the public, and

(b)  it must give public notice of the date so fixed.

(2)  The date fixed for the meeting must be at least 7 days after the date on which the notice is given, but not more than 5 weeks after the auditor’s reports are given to the council.

Note. Unless an extension is granted under section 416, the meeting must be held on or before 5 December after the end of the year to which the reports relate.

(3)  The public notice must include:

(a)  a statement that the business of the meeting will include the presentation of the audited financial reports and the auditor’s reports, and

(b)  a summary, in the approved form, of the financial reports, and

(c)  a statement to the effect that any person may, in accordance with section 420, make submissions (within the time provided by that section and specified in the statement) to the council with respect to the council’s audited financial reports or with respect to the auditor’s reports.

(4)  Copies of the council’s audited financial reports, together with the auditor’s reports, must be kept available at the office of the council for inspection by members of the public on and from the date on which public notice of the holding of the meeting is given and until the day after the meeting (or any postponement of the meeting).

Link to Strategic Plan

Community Leadership and Collaboration

Objective: We have strong leadership

Outcome: We are accountable and transparent

Risk Management Issues for Council

The NSW Audit Office will provide Council with a final Management Letter by 30 November 2017, with the Interim Management Letter previously discussed at the 10 August 2017 Audit, Risk and Improvement Committee Meeting. The Interim Management Letter identified six issues with five rating as Moderate and one rated as Low. Council officers will undertake the actions that will be identified in the Final Management Responses.

Internal / External Consultation

The Council’s Community Engagement Strategy and IAP2 considers the community to be “any individual or group of individuals, organisation or political entity with an interest in the outcome of a decision….”

 

Council’s external auditors, NSW Audit Office have liaised with Council’s Finance division and presented the draft Financial Statements in detail to the Audit, Risk and Improvement Committee at the 5 October 2017 Committee meeting.

 

Attachments  

 

1.

WWCC - 2016/17 Financial Statements - Provided under separate cover

 

2.

Report on the Conduct of the Audit - NSW Audit Office

 

3.

Report on the General Purpose Financial Statements - NSW Audit Office

 

4.

Report on the Special Purpose Financial Statements - NSW Audit Office

 

5.

Report on Special Schedule No. 8 - NSW Audit Office

 

  


Report submitted to the Ordinary Meeting of Council on Monday 27 November 2017.                                                                          RP-3

 








Report submitted to the Ordinary Meeting of Council on Monday 27 November 2017.                                                                          RP-3

 




Report submitted to the Ordinary Meeting of Council on Monday 27 November 2017.                                                                          RP-3

 




Report submitted to the Ordinary Meeting of Council on Monday 27 November 2017.                                                                          RP-3

 



Report submitted to the Ordinary Meeting of Council on Monday 27 November 2017.                                                   RP-4

RP-4               Financial Performance Report as at 31 October 2017

Author:          Carolyn Rodney

Director:       Natalie Te Pohe

         

Analysis:

This report is for Council to consider and approve the proposed 2017/18 budget variations required to manage the 2017/18 budget and Long Term Financial Plan, and details Council’s external investments and performance as at 31 October 2017.

 

This report also includes Section 356 requests for financial assistance to be considered for approval.

 

 

Recommendation

That Council:

a       approve the proposed 2017/18 budget variations for the month ended 31 October 2017 and note the balanced budget position 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        provide financial assistance of the following amounts in accordance with Section 356 of the Local Government Act 1993:

i)       Mayoress Concert                                                                              $    975.00

d       note details of the external investments as at 31 October 2017 in accordance with section 625 of the Local Government Act 1993

 

Report

Wagga Wagga City Council (Council) forecasts an overall balanced budget position as at 31 October 2017. Proposed funded budget variations are detailed in this report for Council’s consideration and adoption.

 

Council has experienced a positive monthly investment performance for the month of October that is mainly attributable to Council’s Floating Rate Note (FRN) portfolio seeing a positive movement for the period. Councils managed funds investment also performed strongly during the October period. Council also continues to have a higher than anticipated investment portfolio balance and continued strong portfolio returns.

 


Key Performance Indicators

 

 

OPERATING INCOME

Total operating income is 33% of approved budget, which is tracking to budget for the end of October (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 71%.

 

OPERATING EXPENSES

Total operating expenditure is 32% of approved budget and is tracking to budget for the full financial year.

 

CAPITAL INCOME

Total capital income is 11% 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 28% of approved budget.

 


 

WAGGA WAGGA CITY COUNCIL
STATEMENT OF FINANCIAL PERFORMANCE
1 JULY 2017 TO 31 OCTOBER 2017

CONSOLIDATED STATEMENT

 

ORIGINAL
BUDGET
2017/18
$'000

BUDGET ADJ
2017/18
$'000

APPROVED BUDGET
2017/18
$'000

YTD ACTUAL   EXCL COMMT'S 2017/18

COMMT'S 2017/18
$'000

YTD ACTUAL + COMMT'S
2017/18
$'000

YTD % OF BUD

Revenue

 

Rates & Annual Charges

(63,090,002)

0

(63,090,002)

(22,002,058)

0

(22,002,058)

35%

User Charges & Fees

(25,947,798)

35,469

(25,912,329)

(7,846,699)

0

(7,846,699)

30%

Interest & Investment Revenue

(3,154,163)

0

(3,154,163)

(1,408,175)

0

(1,408,175)

45%

Other Revenues

(2,984,954)

(51,335)

(3,036,289)

(826,098)

0

(826,098)

27%

Operating Grants & Contributions

(13,910,429)

3,432,786

(10,477,643)

(2,650,668)

0

(2,650,668)

25%

Capital Grants & Contributions

(13,704,984)

(22,547,734)

(36,252,719)

(3,705,997)

0

(3,705,997)

10%

Total Revenue

(122,792,330)

(19,130,814)

(141,923,144)

(38,439,695)

0

(38,439,695)

27%

 

 

Expenses

 

Employee Benefits & On-Costs

42,458,491

178,503

42,636,994

12,368,876

38,620

12,407,496

29%

Borrowing Costs

3,591,092

0

3,591,092

828,779

0

828,779

23%

Materials & Contracts

6,580,594

503,084

7,083,678

3,277,855

895,206

4,173,060

59%

Depreciation & Amortisation

34,477,729

0

34,477,729

11,492,576

0

11,492,576

33%

Other Expenses

32,706,532

3,280,059

35,986,591

9,442,710

1,592,459

11,035,169

31%

Total Expenses

119,814,437

3,961,645

123,776,083

37,410,795

2,526,285

39,937,080

32%

 

 

Net Operating (Profit)/Loss

(2,977,893)

(15,169,169)

(18,147,062)

(1,028,900)

2,526,285

1,497,385

 

 

Net Operating (Profit)/Loss before Capital Grants & Contributions

10,727,091

7,378,566

18,105,657

2,677,097

2,526,285

5,203,382

 

 

 

Cap/Reserve Movements

Capital Exp - Renewals

25,035,121

26,703,189

51,738,311

3,097,464

13,717,267

16,814,731

32%

Capital Exp - New Projects

16,498,302

16,373,377

32,871,678

6,772,035

4,872,039

11,644,074

35%

Capital Exp - Project Concepts

11,800,337

6,097,816

17,898,153

34,540

65,708

100,248

1%

Loan Repayments

2,474,343

0

2,474,343

824,781

0

824,781

33%

New Loan Borrowings

(7,215,980)

(4,059,170)

(11,275,150)

0

0

0

0%

Sale of Assets

(4,678,401)

(1,371,761)

(6,050,162)

(305,621)

0

(305,621)

5%

Net Movements Reserves

(6,458,101)

(28,574,282)

(35,032,383)

0

0

0

0%

Total Cap/Res Movements

37,455,621

15,169,169

52,624,790

10,423,200

18,655,013

29,078,213

55%

 

 

 

ORIGINAL
BUDGET
2017/18
$'000

BUDGET ADJ
2017/18
$'000

APPROVED BUDGET
2017/18
$'000

YTD ACTUAL   EXCL COMMT'S 2017/18

COMMT'S 2017/18
$'000

YTD ACTUAL + COMMT'S
2017/18
$'000

YTD % OF BUD

Net Result after Depreciation

34,477,728

0

34,477,728

9,394,300

21,181,298

30,575,598

 

 

 

Add back Depreciation Expense

34,477,729

0

34,477,729

11,492,576

0

11,492,576

 

 

 

Cash Budget (Surplus)/Deficit

0

0

0

(2,098,277)

21,181,298

19,083,022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




Revised Budget Result - Surplus/(Deficit)

$’000s

Original 2017/18 Budget Result as adopted by Council

Total Budget Variations approved to date

Budget variations for October 2017

$0

$0

$0

Proposed revised budget result for 31 October 2017

$0

 

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

 

Budget Variation

Amount

Funding Source

Net Impact

Fav/ (Unfav)

2 – Safe and Healthy Community

Lawn Cemetery Irrigation and Pump Upgrade

$154K

Cemetery Reserve (100K)

Cemetery Operating Budget Savings ($54K)

Nil

Funds are required for irrigation, turfing and a pump upgrade to allow for the completion of the Lawn Cemetery Master Plan Stage 2 project. 

The current pump system is operating at its maximum capacity with this upgrade required to cater for the additional irrigation requirements. It is proposed to fund these works from identified Cemetery operational budgets this financial year ($54K) and the Cemetery Operating Reserve ($100K).

Oasis Repairs & Maintenance

$86K

Oasis Plant Reserve ($86K)

Nil

Funds are required at the Oasis for the major upgrade of all five pool sand filters, the replacement of the chlorine storage room bunding and dosing pump control panel. In addition, Council officers have identified that the two evaporative air conditioners located at Workout Gym require replacing.  Under the current lease agreement, Workout is responsible for the maintenance of the air conditioners, with Council responsible for the replacements. It is proposed to fund these required works from the Oasis Plant Reserve, which has a current balance of $1.1M and has capacity to fund these works.

4 – Community Place and Identity

Fitz Live Event

$20K

Fitz Live Grant Income ($20K)

Nil

Council has been successful in securing grant funding of $20K from the Live Music Office and Create NSW for Fitz Live. Fitz Live is a music event that will occur over two Saturdays in Autumn 2018 at Wagga Tourism Partner businesses in Fitzmaurice Street.

Civic Theatre Partnership Shows

$50K

Civic Theatre Partnership Shows Income ($50K)

Nil

It is proposed to create a new budget line for the Civic Theatre to be able to attract and present several high quality artists each year. The majority of these artists will only tour to regional areas as part of a partnership agreement. These shows are expected to operate on a cost neutral basis or return a small profit. Council are currently in partnership negotiations with a number of high quality artists.

Civic Theatre Lighting Upgrade

$57K

Civic Theatre Technical Reserve ($57K)

 

Funds are required for the continuation of the Civic Theatre lighting upgrade with the replacement of analogue lights with LED lights. LED lighting is more flexible, energy efficient, cheaper and reliable. The lights selected are now industry standard and being used by the major theatre companies in Australia. It is proposed to fund these works from the Civic Theatre Technical Reserve which has a current balance of $105K and has capacity to fund these works.

Fusion Sustainability Strategy

$18K

Fusion Sustainability Grant Income ($18K)

Nil

Council has been successful in obtaining a Building Better Regions Grant for $18K to fund the Fusion Sustainability Strategy Project. This project aims to support local communities to prosper and grow and helps to boost economic growth in the region by continued support of the Fusion Festival. The Fusion Festival celebrates the 112 countries of origin that make up our community and attracts more than 10,000 people from across the region for the event.

5 – The Environment

Graham Park Embellishment

 

Wilga Park Embellishment

$50K

 

$50K

Graham Park Grant Income ($50K)

Wilga Park Grant Income ($50K)

Nil

Council has been successful in obtaining $100K from Family & Community Services NSW under the Social Housing Community Fund to improve the liveability of social housing communities in Ashmont and Kooringal.

 

The Graham Park at Ashmont $50K grant will provide a new toilet block, bench seating and bubbler for the park. This grant will compliment the existing $100K allocated in 2017/18 for the upgrade of Graham Park.

 

The Wilga Park Kooringal grant of $50K will provide improvements to the park including landscaping, a basketball court and skate grinding rail.

VMG Christmas Lights

$20K

Events Management ($10K)

Director of Commercial Operations - Operational Budget Savings ($10K)

Nil

Due to feedback received from community members last festive season, it is proposed to purchase and install quality Christmas lighting for the Victory Memorial Gardens (VMG). This involves providing lighting to the main tree at the VMG which will offer a new look and feel for Christmas 2017 in Wagga Wagga. Due to timing restraints, the lighting has been ordered to ensure that these lights will be installed by the end of November in time for Christmas. It is proposed to fund this variation from the existing Events Management budget and operational budget savings identified in the Director of Commercial Operations area.

SURPLUS/(DEFICIT)

Nil

 


Current Restrictions

 

RESERVES SUMMARY

31 OCTOBER 2017

 

Approved Changes

 

 

 

CLOSING BALANCE 2016/17

ADOPTED RESERVE TRANSFERS 2017/18

BUDGET VARIATIONS APPROVED UP TO COUNCIL MEETING 23.10.17

RECOMMENDED CHANGES for Council Resolution

REVISED BALANCE

 

 

Externally Restricted

 

Developer Contributions

(21,947,807)

3,374,249

4,733,577

(13,839,982)

Sewer Fund Reserve

(24,045,646)

1,229,992

3,325,465

(19,490,189)

Solid Waste Reserve

(15,824,723)

4,878,008

1,207,212

(9,739,503)

Specific Purpose Unexpended Grants/Contributions

(3,378,959)

0

3,378,959

0

SRV Levee Reserve

(1,167,316)

1,167,316

0

Stormwater Levy Reserve

(2,940,246)

(587,206)

451,268

(3,076,184)

Total Externally Restricted

(69,304,697)

8,895,043

14,263,797

0

(46,145,858)

 

 

Internally Restricted

 

Airport Reserve

(371,610)

(386,660)

101,914

(656,355)

Art Gallery Reserve

(30,990)

(21,000)

0

(51,990)

Ashmont Community Facility Reserve

(4,500)

(1,500)

0

(6,000)

Bridge Replacement Reserve

(240,240)

(100,000)

153,573

(186,667)

CBD Carparking Facilities Reserve

(891,982)

0

129,191

(762,792)

CCTV Reserve

(64,476)

(10,000)

0

(74,476)

Cemetery Perpetual Reserve

(157,605)

(125,146)

144,084

(138,667)

Cemetery Reserve

(193,116)

(161,330)

0

(354,446)

Civic Theatre Operating Reserve

0

(50,000)

0

(50,000)

Civic Theatre Technical Infra Reserve

(105,450)

(50,000)

0

57,000

(98,450)

Civil Projects Reserve

(155,883)

0

0

(155,883)

Community Amenities Reserve

(5,685)

0

0

(5,685)

Council Election Reserve

(166,776)

(73,095)

0

(239,871)

Emergency Events Reserve

(133,829)

(86,331)

(220,160)

Employee Leave Entitlements Gen Fund Reserve

(3,184,451)

0

0

(3,184,451)

Environmental Conservation Reserve

(131,351)

0

0

(131,351)

Estella Community Centre Reserve

(230,992)

0

0

(230,992)

Family Day Care Reserve

(169,356)

(123,944)

0

(293,300)

Fit for the Future Reserve

(3,033,479)

(2,265,725)

542,464

(4,756,740)

Generic Projects Saving

(1,040,610)

20,000

93,727

(926,883)

Glenfield Community Centre Reserve

(17,704)

(2,000)

0

(19,704)

Grants Commission Reserve

(4,956,776)

0

4,956,776

0

Grassroots Cricket Reserve

(70,992)

0

0

(70,992)

Gravel Pit Restoration Reserve

(761,422)

0

25,000

(736,422)

Gurwood Street Property Reserve

(50,454)

0

0

(50,454)

Information Services

(378,713)

250,000

0

(128,713)

Infrastructure Replacement Reserve

(136,098)

(48,071)

954

(183,215)

Insurance Variations Reserve

(28,644)

0

0

(28,644)

Internal Loans Reserve

(674,661)

(851,794)

695,008

(831,446)

Lake Albert Improvements Reserve

(53,867)

(50,000)

56,078

(47,789)

LEP Preparation Reserve

(28,301)

14,636

11,120

(2,545)

Livestock Marketing Centre Reserve

(7,267,731)

(1,180,017)

4,053,725

(4,394,024)

Museum Acquisitions Reserve

(39,378)

0

0

(39,378)

Oasis Building Renewal Reserve

(172,000)

(32,147)

121,000

(83,147)

Oasis Plant Reserve

(1,115,347)

90,000

0

86,000

(939,347)

Parks & Recreation Projects

(79,648)

0

74,360

(5,288)

Pedestrian River Crossing (old Riverside) Reserve

(198,031)

48,031

150,000

0

Plant Replacement Reserve

(5,893,831)

1,804,934

1,059,675

(3,029,223)

Playground Equip Replacement Reserve

(59,181)

(105,679)

0

(164,860)

Project Carryovers Reserve

(1,276,882)

0

1,276,882

0

Public Art Reserve

(173,283)

(23,669)

0

(196,952)

Robertson Oval Redevelopment Reserve

(86,697)

0

0

(86,697)

Senior Citizens Centre Reserve

(13,627)

(2,000)

0

(15,627)

Sister Cities Reserve

(36,527)

(10,000)

0

(46,527)

Stormwater Drainage Reserve

(183,420)

0

3,177

(180,242)

Strategic Real Property Reserve

(702,792)

0

(380,000)

(1,082,792)

Street Lighting Replacement Reserve

(74,755)

(30,000)

0

(104,755)

Subdivision Tree Planting Reserve

(272,621)

(20,000)

0

(292,621)

Sustainable Energy Reserve

(520,442)

35,000

60,000

(425,442)

Traffic Committee Reserve

(50,000)

(50,000)

0

(100,000)

Total Internally Restricted

(35,686,205)

(3,511,177)

13,242,376

143,000

(25,812,006)

 

 

Total Restricted

(104,990,903)

5,383,866

27,506,173

143,000

(71,957,864)

 

 

 

 

 

 

 

 

Section 356 Financial Assistance Requests

 

Two Section 356 Donation requests has been received for consideration at the 27 November 2017 Ordinary Council meeting. A donation request of $90 to the Tiny Tykes Markets is the subject of a separate report.

 


The second donation request is noted below.

 

·        Mayoress Concert 2018  - $975

 

The Mayoress – Mrs Jenny Conkey has requested the waiver of the hire fees for the Civic Theatre to stage a fund raising concert on the 28 July 2018.

 

Mayoress Conkey in her attached request notes:

 

“The concert would be a showcase of local musical talent with all profit used to fund youth programs in the local community “

 

 

Section 356 financial assistance available budget

$8,010.64     

Mayoress Concert

($975.00)

Tiny Tykes Market (Subject of separate 27 November Council Report)

(90.00)

 

Total Section 356 Financial Assistance Requests – 27 November   2017 Council Meeting

 

 

($ 1065.00)  

 

Proposed balance of Section 356 financial assistance budget – available for requests received for the remainder of this financial year

 

 

$6,945.64

 

 

 

Investment Summary as at 31 October 2017

In accordance with Regulation 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
30/09/2017
$

Closing Balance
Invested
31/10/2017
$

October
EOM
Current Yield
%

October
EOM
%
of Portfolio

Investment
Date

Maturity
Date

Term
(mth)

Short Term Deposits

 

 

 

 

 

 

 

 

Police Credit Union

NR

1,000,000

1,000,000

2.87%

0.86%

6/12/2016

6/12/2017

12

Banana Coast CU

NR

1,000,000

1,000,000

2.80%

0.86%

2/06/2017

1/06/2018

12

AMP

A

2,000,000

2,000,000

2.80%

1.72%

2/06/2017

1/06/2018

12

CUA

BBB

1,000,000

1,000,000

2.80%

0.86%

9/02/2017

5/01/2018

11

AMP

A

2,000,000

2,000,000

2.60%

1.72%

2/08/2017

2/08/2018

12

ME Bank

BBB

2,000,000

0

0.00%

0.00%

16/12/2016

16/10/2017

10

CUA

BBB

1,000,000

1,000,000

2.75%

0.86%

3/03/2017

2/03/2018

12

Suncorp-Metway

A+

2,000,000

2,000,000

2.60%

1.72%

7/06/2017

3/01/2018

7

NAB

AA-

2,000,000

2,000,000

2.60%

1.72%

8/09/2017

7/09/2018

12

Suncorp-Metway

A+

2,000,000

0

0.00%

0.00%

9/06/2017

9/10/2017

4

Suncorp-Metway

A+

2,000,000

2,000,000

2.55%

1.72%

9/06/2017

6/11/2017

5

ME Bank

BBB

2,000,000

2,000,000

2.60%

1.72%

22/08/2017

19/04/2018

8

AMP

A

1,000,000

1,000,000

2.80%

0.86%

8/09/2017

5/06/2018

9

NAB

AA-

2,000,000

2,000,000

2.62%

1.72%

28/09/2017

28/09/2018

12

Auswide

BBB-

0

2,000,000

2.67%

1.72%

5/10/2017

5/10/2018

12

Auswide

BBB-

0

1,000,000

2.67%

0.86%

16/10/2017

16/10/2018

12

Total Short Term Deposits

 

23,000,000

22,000,000

2.67%

18.87%

 

 

 

At Call Accounts

 

 

 

 

 

 

 

 

NAB

AA-

3,028,968

1,533,002

1.50%

1.31%

N/A

N/A

N/A

NAB

AA-

14,049,701

15,577,967

2.19%

13.36%

N/A

N/A

N/A

Institution

Rating

Closing Balance
Invested
30/09/2017
$

Closing Balance
Invested
31/10/2017
$

October
EOM
Current Yield
%

October
EOM
%
of Portfolio

Investment
Date

Maturity
Date

Term
(mth)

AMP

A

182,498

182,821

2.15%

0.16%

N/A

N/A

N/A

Beyond Bank

BBB+

148,698

148,850

1.00%

0.13%

N/A

N/A

N/A

CBA

AA-

51,634

51,594

1.35%

0.04%

N/A

N/A

N/A

Total At Call Accounts

 

17,461,500

17,494,233

2.12%

15.00%

 

 

 

Medium Term Deposits

 

 

 

 

 

 

 

 

RaboBank

A+

1,000,000

1,000,000

3.16%

0.86%

5/06/2017

6/06/2022

60

ING Bank

A

3,000,000

3,000,000

2.75%

2.57%

24/08/2017

26/08/2019

24

ME Bank

BBB

2,000,000

2,000,000

4.28%

1.72%

2/09/2014

2/09/2019

60

Rabobank

A+

1,000,000

1,000,000

4.10%

0.86%

5/12/2014

5/12/2019

60

Beyond Bank

BBB+

990,000

990,000

3.70%

0.85%

4/03/2015

4/03/2018

36

Beyond Bank

BBB+

990,000

990,000

3.70%

0.85%

11/03/2015

11/03/2018

36

BOQ

BBB+

2,000,000

2,000,000

3.10%

1.72%

7/07/2017

7/07/2020

36

Newcastle Permanent

BBB

1,000,000

1,000,000

3.00%

0.86%

12/08/2016

12/08/2019

36

Rabobank

A+

1,000,000

1,000,000

3.20%

0.86%

25/08/2016

25/08/2021

60

Newcastle Permanent

BBB

1,000,000

1,000,000

3.00%

0.86%

31/08/2016

30/08/2019

36

Police Credit Union

NR

1,000,000

1,000,000

2.90%

0.86%

8/09/2016

10/09/2018

24

Newcastle Permanent

BBB

2,000,000

2,000,000

3.00%

1.72%

10/02/2017

11/02/2019

24

Westpac

AA-

3,000,000

3,000,000

3.10%

2.57%

10/03/2017

10/03/2022

60

ING Bank

A

0

1,000,000

2.92%

0.86%

16/10/2017

16/10/2019

24

Total Medium Term Deposits

 

19,980,000

20,980,000

3.24%

17.99%

 

 

 

Floating Rate Notes - Senior Debt

 

 

 

 

 

 

 

 

Bendigo-Adelaide

BBB+

1,003,564

1,006,917

BBSW + 93

0.86%

17/09/2014

17/09/2019

60

BOQ

BBB+

2,015,000

2,021,800

BBSW + 110

1.73%

5/08/2014

24/06/2019

58

BOQ

BBB+

1,009,023

1,005,587

BBSW + 107

0.86%

6/11/2014

6/11/2019

60

BOQ

BBB+

1,009,023

1,005,587

BBSW + 107

0.86%

10/11/2014

6/11/2019

60

ME Bank

BBB

1,003,714

1,005,777

BBSW + 100

0.86%

17/11/2014

17/11/2017

36

ME Bank

BBB

1,003,714

1,005,777

BBSW + 100

0.86%

17/11/2014

17/11/2017

36

Teachers Mutual

BBB

1,002,744

1,004,837

BBSW + 105

0.86%

4/12/2014

4/12/2017

36

Newcastle Permanent

BBB

1,003,974

1,006,107

BBSW + 110

0.86%

27/02/2015

27/02/2018

36

Macquarie Bank

A

2,008,000

2,012,400

BBSW + 110

1.73%

3/03/2015

3/03/2020

60

ANZ

AA-

759,392

0

0.00%

0.00%

17/04/2015

17/04/2020

60

Heritage Bank

BBB+

1,005,813

1,001,078

BBSW + 115

0.86%

7/05/2015

7/05/2018

36

NAB

AA-

1,008,130

0

0.00%

0.00%

3/06/2015

3/06/2020

60

Heritage Bank

BBB+

1,005,813

1,001,078

BBSW + 115

0.86%

9/06/2015

7/05/2018

35

CBA

AA-

1,013,912

1,010,627

BBSW + 90

0.87%

17/07/2015

17/07/2020

60

Westpac

AA-

1,013,752

1,009,907

BBSW + 90

0.87%

28/07/2015

28/07/2020

60

Bendigo-Adelaide

BBB+

1,008,643

1,012,347

BBSW + 110

0.87%

18/08/2015

18/08/2020

60

Credit Suisse

A

1,008,233

0

0.00%

0.00%

24/08/2015

24/08/2018

36

Bendigo-Adelaide

BBB+

1,008,643

1,012,347

BBSW + 110

0.87%

28/09/2015

18/08/2020

59

Westpac

AA-

2,027,504

2,019,814

BBSW + 90

1.73%

30/09/2015

28/07/2020

58

Suncorp-Metway

A+

1,021,130

1,017,086

BBSW + 125

0.87%

20/10/2015

20/10/2020

60

Westpac

AA-

4,075,884

4,059,188

BBSW + 108

3.48%

28/10/2015

28/10/2020

60

AMP

A

1,817,501

1,822,729

BBSW + 110

1.56%

11/12/2015

11/06/2019

42

CBA

AA-

1,020,510

1,016,806

BBSW + 115

0.87%

18/01/2016

18/01/2021

60

Rabobank

A+

2,057,038

2,063,050

BBSW + 150

1.77%

4/03/2016

4/03/2021

60

Newcastle Permanent

BBB

1,007,043

1,009,597

BBSW + 160

0.87%

22/03/2016

22/03/2019

36

CUA

BBB

2,045,000

2,018,874

BBSW + 160

1.73%

1/04/2016

1/04/2019

36

Institution

Rating

Closing Balance
Invested
30/09/2017
$

Closing Balance
Invested
31/10/2017
$

October
EOM
Current Yield
%

October
EOM
%
of Portfolio

Investment
Date

Maturity
Date

Term
(mth)

ANZ

AA-

1,016,251

1,019,506

BBSW + 118

0.87%

7/04/2016

7/04/2021

60

Suncorp-Metway

A+

1,026,779

1,022,386

BBSW + 138

0.88%

21/04/2016

12/04/2021

60

AMP

A

1,021,530

1,025,136

BBSW + 135

0.88%

24/05/2016

24/05/2021

60

Westpac

AA-

1,018,231

1,021,946

BBSW + 117

0.88%

3/06/2016

3/06/2021

60

CBA

AA-

1,023,630

1,020,226

BBSW + 121

0.88%

12/07/2016

12/07/2021

60

ANZ

AA-

2,037,182

2,044,672

BBSW + 113

1.75%

16/08/2016

16/08/2021

60

BOQ

BBB+

1,516,743

1,511,816

BBSW + 117

1.30%

26/10/2016

26/10/2020

48

NAB

AA-

1,016,721

1,014,407

BBSW + 105

0.87%

21/10/2016

21/10/2021

60

Teachers Mutual

BBB

1,510,205

1,501,842

BBSW + 140

1.29%

28/10/2016

28/10/2019

36

Bendigo-Adelaide

BBB+

1,007,673

1,011,347

BBSW + 110

0.87%

21/11/2016

21/02/2020

39

Westpac

AA-

1,018,461

1,016,226

BBSW + 111

0.87%

7/02/2017

7/02/2022

60

ANZ

AA-

1,011,832

1,016,486

BBSW + 100

0.87%

7/03/2017

7/03/2022

60

CUA

BBB

750,825

752,925

BBSW + 130

0.65%

20/03/2017

20/03/2020

36

Heritage Bank

BBB+

602,984

600,413

BBSW + 130

0.51%

4/05/2017

4/05/2020

36

Teachers Mutual

BBB

1,007,307

1,003,528

BBSW + 142

0.86%

29/06/2017

29/06/2020

36

NAB

AA-

3,013,092

3,030,141

BBSW + 90

2.60%

5/07/2017

5/07/2022

60

Suncorp-Metway

A+

1,004,373

1,008,171

BBSW + 97

0.86%

16/08/2017

16/08/2022

60

Westpac

AA-

0

2,000,200

BBSW + 81

1.72%

30/10/2017

27/10/2022

60

Total Floating Rate Notes - Senior Debt

 

55,566,515

54,770,690

 

46.98%

 

 

 

Managed Funds

 

 

 

 

 

 

 

 

NSW Tcorp

NR

1,312,222

1,347,006

2.65%

1.16%

17/03/2014

1/09/2022

101

Total Managed Funds

 

1,312,222

1,347,006

2.65%

1.16%

 

 

 

TOTAL CASH ASSETS, CASH
EQUIVALENTS & INVESTMENTS

 

117,320,236

116,591,928

3.22%

100.00%

 

 

 

LESS: RIVERINA REGIONAL LIBRARY (RRL) CASH AT BANK

 

3,010,032

2,797,235

 

 

 

 

 

TOTAL WWCC CASH ASSETS, CASH
EQUIVALENTS & INVESTMENTS

 

114,310,205

113,794,693

 

 

 

 

 

 

Council’s portfolio is dominated by Floating Rate Notes (FRN’s) at approximately 47% across a broad range of counterparties. Cash equates to 15% of Council’s portfolio with Term Deposits around 37% and growth funds around 1% of the portfolio.

 

 

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

 

 


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

 

 

Investment Portfolio Balance

 

Council’s investment portfolio balance has remained relatively stable from the previous month’s balance, down from $114.3M to $113.8M.

 

 

MONTHLY INVESTMENT MOVEMENTS

 

Redemptions/Sales – Council redeemed/sold the following investment security during October 2017:

 

Institution and Type

Amount

Investment

Term

Interest

Rate

Comments

ME Bank Term Deposit

$2M

10 months

2.80%

This term deposit was redeemed due to poor reinvestment rates available with ME Bank. These funds were reinvested with Auswide Bank and ING Bank (see below).

Suncorp-Metway Term Deposit

$2M

4 months

2.50%

This term deposit was redeemed due to poor reinvestment rates available with Suncorp-Metway. These funds were reinvested with Auswide Bank (see below).

ANZ Floating Rate Note

$750K

5 years

BBSW + 82bps

This floating rate note was sold for a Capital gain of $5,588.

NAB Floating Rate Note

$1M

5 years

BBSW + 80bps

This floating rate note was sold for a Capital gain of $6,660 and the funds used to invest in a $2M parcel of Westpac Bank Floating Rate Note (see below).

Credit Suisse Floating Rate Note

$1M

3 years

BBSW + 105bps

This floating rate note was sold for a Capital gain of $5,090 and the funds used to invest in a $2M parcel of Westpac Bank Floating Rate Note (see below).

 

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

 

Institution and Type

Amount

Investment

Term

Interest

Rate

Comments

Auswide Bank

Term Deposit

$2M

12 months

2.67%

The Auswide Bank rate of 2.67% compared favourably to the rest of the market for this investment term. This term was chosen to fill a maturity gap within the portfolio.

Auswide Bank

Term Deposit

$1M

12 months

2.67%

The Auswide Bank rate of 2.67% compared favourably to the rest of the market for this investment term. This term was chosen to fill a maturity gap within the portfolio.

ING Bank

Term Deposit

$1M

2 years

2.92%

The ING Bank rate of 2.92% compared favourably to the rest of the market for this investment term. This term was chosen to fill a maturity gap within the portfolio.

Westpac Floating Rate Note

$2M

5 years

BBSW + 81bps

Council’s independent Financial Advisor advised this Floating Rate Note represented fair value with a major bank.

 

Rollovers – Council did not roll over any investment securities during October 2017.

 

MONTHLY PERFORMANCE

 

Interest/growth/capital gains for the month totaled $318,894, which compares favourably with the budget for the period of $235,087, outperforming budget for October by $83,807. This is mainly attributable to Council’s Floating Rate Note (FRN) portfolio seeing a slight increase for the October period as well as a strong return from the NSW TCorp Managed Fund. It should be noted that many of Councils FRNs continue to trade at a premium.

 

The capital market value of these FRN investments will fluctuate from month to month and 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 Council’s investment portfolio balance has consistently been over $100M recently, which is tracking well above what was originally predicted. This is mainly due to the 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 2017/18 financial year the portfolio balance will reduce with the construction of major projects.

 

 

The longer-dated deposits in the portfolio, particularly those locked in above 4% yields, have previously anchored Council’s portfolio performance. It should be noted that the portfolio now only includes two investments yielding above 4% and Council will inevitably see a fall in investment income over the coming months compared with previous periods. Council staff and Council’s Independent Financial Advisor will continue to identify opportunities to lock in higher yielding investments as they become available.

 

In comparison to the AusBond Bank Bill Index* (+1.74%pa), Council’s investment portfolio in total returned 3.22% for October. Short-term deposits returned 2.67%. 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 and Legislation

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.

 

Local Government Act 1993

 

625   How may councils invest?

(1)  A council may invest money that is not, for the time being, required by the council for any other purpose.

(2)  Money may be invested only in a form of investment notified by order of the Minister published in the Gazette.

(3)  An order of the Minister notifying a form of investment for the purposes of this section must not be made without the approval of the Treasurer.

(4)  The acquisition, in accordance with section 358, of a controlling interest in a corporation or an entity within the meaning of that section is not an investment for the purposes of this section.

 

Local Government (General) Regulation 2005

 

212   Reports on council investments

(1)  The responsible accounting officer of a council:

(a)  must provide the council with a written report (setting out details of all money that the council has invested under section 625 of the Act) to be presented:

(i)  if only one ordinary meeting of the council is held in a month, at that meeting, or

(ii)  if more than one such meeting is held in a month, at whichever of those meetings the council by resolution determines, and

(b)  must include in the report a certificate as to whether or not the investment has been made in accordance with the Act, the regulations and the council’s investment policies.

(2)  The report must be made up to the last day of the month immediately preceding the meeting.

 

Link to Strategic Plan

Community Leadership and Collaboration

Objective: We have strong leadership

Outcome: We are accountable and transparent

 

Risk Management Issues for Council

This report is a control mechanism that assists in addressing the following potential risks to Council:

·        Loss of investment income or capital resulting from ongoing management of investments, especially during difficult economic times

·        Failure to demonstrate to the community that its funds are being expended in an efficient and effective manner

Internal / External Consultation

Council’s Community Engagement Strategy and IAP2 considers the community to be “any individual or group of individuals, organisation or political entity with an interest in the outcome of a decision….”

 

All relevant areas within the 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.

 

Attachments  

 

1.

Section 356 Donation Request - Mayoress Concert

 

 

 


Report submitted to the Ordinary Meeting of Council on Monday 27 November 2017.                                                                          RP-4


Report submitted to the Ordinary Meeting of Council on Monday 27 November 2017.                                                   RP-5

 

RP-5               COUNCIL MEETING DATES JANUARY 2018 to DECEMBER 2018

Author:                        Ingrid Hensley

General Manager:    James Bolton

         

Analysis:

Council is required under Section 365 of the Local Government Act 1993 to meet at least 10 times each year, each time in a different month.

 

 

Recommendation

That Council:

a       endorse the schedule of Ordinary Council meetings for the period January 2018 to December 2018 as outlined in the report

b       delegate authority to the General Manager, in consultation with the Mayor, to change a date and/or time of an Ordinary Council meeting if deemed appropriate

 

Report

Council, at the 12 December 2016 Council Meeting, adopted meeting dates up to and including December 2017. This report provides a schedule of meeting dates for 2018. In accordance with established practice, Council Meetings are generally scheduled for the fourth Monday of each month, although some do fall on the fifth Monday of the month.

 

Council meeting dates

 

Outlined below are the proposed Ordinary Council Meeting dates for the period January 2018 to October 2018:

·        Monday, 29 January 2018

·        Monday, 26 February 2018

·        Monday, 26 March 2018

·        Monday, 23 April 2018

·        Monday, 28 May 2018

·        Monday, 25 June 2018

·        Monday, 23 July 2018

·        Monday, 27 August 2018

·        Monday, 24 September 2018

·        Monday, 29 October 2018

·        Monday, 26 November 2018

·        Monday, 17 December 2018

 

Notes:

·        The date for the December meeting has been brought forward to accommodate for the Christmas break.

·        The date for the October meeting is delayed by a week to accommodate the finalisation of the financial statements, and their review by the Audit, Risk and Improvement Committee. This would mean a five-week period between the September and October meetings, followed by a three-week period between the November and December meetings.

·        Commencement time for Council Meetings is generally 6.00pm.

 

A report will be prepared for the October 2018 Council Meeting, which will propose dates for Council Meetings for 2019.

 

In addition to the schedule of meetings set out above, the Local Government Act 1993 and Council’s adopted Code of Meeting Practice provides the ability for Extraordinary Meetings of the Council in accordance with prescribed provisions.

 

The recommendation makes provision for the General Manager, in consultation with the Mayor, to make a decision on the change of a date and/or time for a Council meeting. This will enable, where appropriate, changes to be made in a timely manner without the requirement for a report to Council.

 

Financial Implications

N/A

Policy and Legislation

N/A

Link to Strategic Plan

Community Leadership and Collaboration

Objective: We have strong leadership

Outcome: We plan long term

Risk Management Issues for Council

No specific issues identified.

Internal / External Consultation

N/A

 

  

 

 


Report submitted to the Ordinary Meeting of Council on Monday 27 November 2017.                                                   RP-6

 

RP-6               Delegation of authority to the Mayor

Author:                        Ingrid Hensley

General Manager:    James Bolton

         

Analysis:

Adopt revised accurate and contemporary Delegations of Authority to the Mayor.

 

 

Recommendation

That Council delegate the following powers, authorities, duties or functions to the Mayor, as listed below:

1.      Day-to-day oversight of the general manager’s employment under the contract of employment between the Council and the general manager as contemplated by Part D of Division of Local Government, Department of Premier & Cabinet in 2011 titled ‘Guidelines for the Appointment & Oversight of General Managers’

2.      Incurring expenditure on behalf of the Council in connection with the mayor’s day-to-day oversight of the general manager’s employment in order to obtain independent expert advice on matters relating to the general manager’s performance under the contract of employment between the Council and the general manager

3.      To exercise the function of the Council of deciding whether to call an extraordinary meeting

4.      To expend money in an amount not exceeding $30,000.00 in any financial year in the proper exercise of the Council’s functions in circumstances where the Mayor reasonably considers that the expenditure is urgent and the expenditure is duly authorised by the Council under clause 211 of the Local Government (General) Regulation 2005 and subject to any conditions or limitations imposed by resolution of the Council from time to time specifically for the purpose of this delegation.

5.      To approve jointly with the General Manager, the attendance of Councillors at any seminar, conference, meeting or course, provided that:

I.        such delegation shall not be exercised if there is a prior Council meeting at which the attendance might be considered allowing sufficient time for registration, arrangements, etc

II.       provision has been made for such expenditure in the Council’s budget.

III.      such seminar, conference etc is for one (1) day or less and does not involve an overnight stay.

 

Report

Wagga Wagga City Council (Council) has, in the past, delegated authority to the Mayor for certain functions. This is considered to be both appropriate and necessary to ensure the position of Mayor has the relevant authority to undertake the role effectively and in the best interests of the community.

 

In accordance with Section 377 of the Local Government Act 1993 (the Act), a Council may delegate functions, other than those specified and exempted under that Section. A council may, by resolution, sub-delegate to the General Manager or any other person or body (not including another employee of the council) any function delegated to the Council by the Department’s Chief Executive except as provided by the instrument of delegation to the Council.

 

A review of the Mayor’s delegation has been undertaken, giving consideration to legislative requirements, Office of Local Government advice, benchmarking against other NSW Council’s, current processes and contemporary best practice.

 

The revised delegations included in the recommendation reflect the current delegations of the Mayor and are in addition to the functions prescribed under Section 226 of the Act which states that the role of the Mayor relates to:

 

·        Conferring Powers or Duties under the Act

·        Powers or Duties under other legislation

·        Preside at Meetings and Functions of Council

The Mayor does not need a delegation from Council to carry out the functions set out in section 226 as above, that section provides the functions as specified.

 

In accordance with the roles, previous delegations and consistent with legislation, it is therefore recommended that the powers, authorities, duties and functions listed above be delegated to the Mayor. This recommendation proposes a reduction in the number of delegations held by the Mayor, in part due to the changes to section 226 on 23 September 2016.

 

Therefore, in summary delegations previously provided to the Mayor have not been included for the following reasons:

 

 

Existing Delegation

Recommendation

1.01 (a)

To fulfil the functions of chief elected member of the Council and to perform all duties imposed upon the Mayor under the Local Government Act 1993

The function is a role imposed upon the Mayor under the Act and is not a function of the Council to be delegated.

1.01 (b)

To authorise any work which in the Mayor’s opinion is urgent but at a cost not exceeding $30,000

Delegation wording amended but delegation remains, as recommended.

1.02 (a)

To call extraordinary meetings of Council in terms of Council’s Code of Meeting Practice

Delegation remains as recommended.

1.02 (b)

In terms of Council’s Code of Meeting Practice and as Chairperson of Council Meetings and on behalf of the General Manager, to direct questions put to Council employees at Council Meetings directly to the employee concerned

 

The Code of Meeting Practice already provides the specific power to the Mayor and, therefore, a separate delegation is not required.

1.03

To exercise, in cases of necessity, the policy making functions of the governing body of the Council between meetings of the Council (Statutory function under Section 226).

The delegation is already a statutory role of the Mayor by reason of section 226(d) of the Act, and does not need to be delegated

1.04

When considered necessary by the Mayor, to request the General Manager to obtain legal advice or legal representation in any matter in which the Council is or may become involved.

The delegation is an administrative function. However, a separate section dealing with expenditure has been included in the revised delegations.

1.05 (a)

To approve jointly with the General Manager, the attendance of Councillors at any seminar, conference, meeting or course, provided that:

I.   such delegation shall not be exercised if there is a prior Council meeting at which the attendance might be considered allowing sufficient time for registration, arrangements, etc

II.  provision has been made for such expenditure in the Council’s budget.

III. such seminar, conference etc is for one (1) day or less and does not involve an overnight stay.

Delegation remains as recommended.

1.05 (b)

To attend to Council business as considered necessary by the Mayor both within and outside of Council boundaries with reasonable expenses to be reimbursed by Council.

The delegation is considered uncertain and not required.

1.06

To be the Council’s Delegate/Member of:

·   NSW Country Mayors’ Association

·   Riverina Eastern Regional Organisation of Councils (REROC)

·   NSW Inland Forum

·   Riverina Regional Cities

·   Regional Capitals Australia

The delegation will be the subject of a specific resolution.

The delegation is also part of the statutory role of the Mayor under section 226(m) of the Act.

1.07

To carry out the civic and ceremonial functions of the office of Mayor (Statutory function under Section 226).

The delegation is already a statutory role of the Mayor by reason of section 226(l) of the Act, and does not need to be delegated.

1.08

To approve and tender Civic Receptions where the Mayor considers it appropriate and the period for arranging the reception does not permit time for a decision to be made by the Council.

The delegation is already a statutory role of the Mayor by reason of section 226(l) of the Act, and does not need to be delegated.

1.09

To perform Citizenship Ceremonies and present Certificates of Australian Citizenship as provided by the relevant Act.

1.10 (a)

To undertake an annual review of the performance of the General Manager in relation to the General Manager’s contract, as a member of the General Manager’s Review Committee along with at least two (2) other Councillors, in terms of the Local Government Act 1993, Council’s policies, decisions and delegations.

Delegation wording amended but delegation remains, as recommended.

 

1.10 (b)

To approve of Annual Leave, Sick Leave, Special Leave or Study Leave for the General Manager in terms of the provisions of the General Manager's Contract of Employment with the Council.

1.11

To respond to media enquiries in consultation with the General Manager on matters relating to the representative Council, decisions of Council, the community and Wagga Wagga Local Government Area in accordance with Councils media policy.

The delegation is already a statutory role of the Mayor by reason of section 226(c) of the Act, and does not need to be delegated.

1.12

To exercise Council’s powers, duties and authorities contained in the Legislation to receive, consider and grant Council and City Honours to a person and groups.

The delegation is already a statutory role of the Mayor by reason of section 226(l) of the Act, and does not need to be delegated.

 

Financial Implications

N/A

Policy and Legislation

The NSW Parliament passed amendments to the Act in the Local Government Amendment (Governance and Planning) Act 2016, which introduced new roles and responsibilities for mayors, councillors and governing bodies. A review of the current and proposed instruments of delegation taking into account the distinction between an administrative task, which does not need to be delegated, and a function of the Council under a statute which is to be exercised by Council or its delegate was undertaken.

 

·        Local Government Act 1993 – Section 226

·        Delegations Policy – POL 060

·        Payment of Expenses and Provision of Facilities to Councillors - POL 025

 

Link to Strategic Plan

Community Leadership and Collaboration

Objective: We have strong leadership

Outcome: We are accountable and transparent

 

Risk Management Issues for Council

Accuracy and accountability of Delegations of Authority to the Mayor.

Internal / External Consultation

·        The Mayor

·        Office of Local Government

·        Council’s Legal Panel Solicitors

·        Finance and Governance staff

 

Attachments  

 

1.

Section 226 - Local Government Act 1993

 

 

 


Report submitted to the Ordinary Meeting of Council on Monday 27 November 2017.                                                                          RP-6

 


Report submitted to the Ordinary Meeting of Council on Monday 27 November 2017.                                                   RP-7

RP-7               DELEGATION OF AUTHORITY TO THE GENERAL MANAGER

Author:                        Ingrid Hensley

General Manager:    James Bolton

       

 

Analysis:

In accordance with Section 377 of the Local Government Act 1993 (NSW), Council may delegate certain functions to the General Manager to facilitate the day-to-day operation of the Council. The General Manager then delegates these functions to the various staff according to the requirements of their position.

 

Recommendation

That Council:

a       delegate from 30 November 2017, as outlined below, to the General Manager Mr Peter Thompson, the powers, authorities, duties and functions of the Council as shown in the Schedule hereto, subject to the limitations and exceptions as shown:

SCHEDULE

a       All powers, authorities, duties and functions of the Council conferred or imposed on the Council by or under the Local Government Act, 1993 other than the functions listed in Section 377 of that Act as matters incapable of being delegated

b       All powers, authorities, duties and functions conferred or imposed on the Council by or under any other Act

LIMITATIONS

a       A power, authority, duty or function the subject of this delegation shall not be exercised by the General Manager in relation to any matter if the Council, by resolution, gives a direction to that effect to the General Manager

b       These delegations may be exercised only in accordance with prescribed standards, codes, policies and decisions of the Council

EXCEPTIONS

a       The determination of any development application that proposes development that would contravene a development standard imposed by Wagga Wagga Local Environmental Plan 2010 or any other environmental planning instrument and that is accompanied by a written request from the applicant seeking to  justify the contravention of the development standard

b       Determination of any development application that is required to be referred to Council for determination in accordance with the Wagga Wagga Development Control Plan 2010, as amended or substituted from time to time

c        Determination of any application in accordance with POL 046 Processing Development Applications Lodged by Councillors, Staff and Individuals of which a Conflict of Interest May Arise, or on Council Owned Land Policy, as amended or substituted from time to time

d       Determination of any development application that is required to be referred to Council for determination in accordance with any directive issued by the Department of Planning and Environment

Report

Delegation is the process by which a person or body empowers another person or body to perform a function. A function includes a power, authority or duty. A person or body making a delegation retains the capacity to perform that function.

 

Under Section 377 of the Local Government Act 1993 (NSW) (the Act), Council may delegate to the General Manager or any other person or body, any of the functions of the Council other than the matters set out in that section. The functions which cannot be delegated are:

 

(1)   A council may, by resolution, delegate to the general manager or any other person or body (not including another employee of the council) any of the functions of the council under this or any other Act, other than the following:

 

(a)     the appointment of a general manager,

(b)     the making of a rate,

(c)     a determination under section 549 as to the levying of a rate,

(d)     the making of a charge,

(e)     the fixing of a fee,

(f)      the borrowing of money,

(g)     the voting of money for expenditure on its works, services or operations,

(h)     the compulsory acquisition, purchase, sale, exchange or surrender of any land or other property (but not including the sale of items of plant or equipment),

(i)      the acceptance of tenders to provide services currently provided by members of staff of the council,

(j)      the adoption of an operational plan under section 405,

(k)     the adoption of a financial statement included in an annual financial report,

(l)      a decision to classify or reclassify public land under Division 1 of Part 2 of Chapter 6,

(m)    the fixing of an amount or rate for the carrying out by the council of work on private land,

(n)     the decision to carry out work on private land for an amount that is less than the amount or rate fixed by the council for the carrying out of any such work,

(o)     the review of a determination made by the council, and not by a delegate of the council, of an application for approval or an application that may be reviewed under section 82A of the Environmental Planning and Assessment Act 1979 ,

(p)     the power of the council to authorise the use of reasonable force for the purpose of gaining entry to premises under section 194,

(q)     a decision under section 356 to contribute money or otherwise grant financial assistance to persons,

(r)      a decision under section 234 to grant leave of absence to the holder of a civic office,

(s)     the making of an application, or the giving of a notice, to the Governor or Minister,

(t)      this power of delegation,

(u)     any function under this or any other Act that is expressly required to be exercised by resolution of the council.

(1A)       Despite subsection (1), a council may delegate its functions relating to the granting of financial assistance if:

(a)       the financial assistance is part of a specified program, and

(b)       the program is included in the council's draft operational plan for the year in which the financial assistance is proposed to be given, and

(c)       the program's proposed budget for that year does not exceed 5 per cent of the council's proposed income from the ordinary rates levied for that year, and

(d)       the program applies uniformly to all persons within the council's area or to a significant proportion of all the persons within the council's area.

 

(2) A council may, by resolution, sub-delegate to the general manager or any other person or body (not including another employee of the council) any function delegated to the council by the Departmental Chief Executive except as provided by the instrument of delegation to the council.

 

In accordance with the Act, the Council cannot delegate to an employee other than the General Manager.

 

It should be noted that Section 378 of the Act allows the General Manager in turn to delegate any function so delegated to him/her to any other person or body, including an employee of the Council.

 

The adoption of the delegations to the General Manager enables him/her and subsequently, council staff, to make decisions within their granted authority. This is necessary to allow the provision of efficient and effective customer service to internal and external customers.

Financial Implications

N/A

Policy and Legislation

A delegation of a Council function must be made by a Council resolution as per Chapter 12 Part 3 sections 377-381 of the NSW Local Government Act 1993.

 

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

N/A

 

 

 


Report submitted to the Ordinary Meeting of Council on Monday 27 November 2017.                                                   RP-8

RP-8               Reinstatement of Airport Fees and Charges

Director:       Natalie Te Pohe

          

Analysis:

Council is presented with the submissions from the public exhibition process in relation to the reinstatement of airport-related fees and charges for 2017/18 for consideration.

 

 

Recommendation

That Council:

a       notes and has considered the public submissions received in relation to the proposed reinstatement of fees and charges for 2017/18 and the new fees and charges that were proposed

b       modifies the proposed fees and charges in order to provide further clarity

c        endorses the reinstatement of the following fees and charges for 2017/18 from 1 July 2017:

Fee and Charge Description

Pricing Policy ID

Basis

2017/18 Fee (exclusive of GST)

GST

2017/18 Fee (inclusive of GST)

Annual landing permits apply to Resident Aircraft being aircraft based at the Wagga Wagga Airport that operate for more than 90% of a financial year from this Airport; and is registered and approved as a Resident Aircraft with and by the Aerodrome Operator.

Such permits apply to, and are valid for, the financial year commencing 1 July.

Resident Freight aircraft annual landing permit

D*

Per tonne per annum (manufacturers MTOW)

$151.09

$15.11

$166.20

Resident Private Aircraft annual landing permit

D*

Per tonne per annum (manufacturers MTOW)

$150.00

$15.00

$165.00

Resident Commercial & Training aircraft annual landing permit

D*

Per tonne per annum (manufacturers MTOW)

$300.00

$30.00

$330.00

Landing charges apply to non-resident aircraft landing at Wagga Wagga Airport, but excludes RPT aircraft and operators exempted by Council.

Landing charge – fixed wing aircraft (non RPT)

D*

Per tonne per landing (manufacturers MTOW)

$12.36

$1.24

$13.60

Landing charge – rotary wing aircraft (non RPT)

D*

Per tonne per landing (manufacturers MTOW)

$6.18

$0.62

$6.80

Replacement for lost parking permit

D*

Each

$50.00

$5.00

$55.00

* As per the Pricing Policy, these items are priced to cover the cost of the item plus normal commercial mark-ups.

to be placed on public exhibition for a period in excess of 28 days from 2 December to 3 January 2018 and invite public submissions on the proposed reinstatement of fees and charges

d       notes that the fees outlined above do not incorporate the annual increase of 3%

e       endorses the following new fees and charges for 2017/18 from the date of Council adoption for:

Fee and Charge Description

Pricing Policy ID

Basis

2017/18 Fee (exclusive of GST)

GST

2017/18 Fee (inclusive of GST)

Parking charges apply to non-resident aircraft parked at Wagga Wagga Airport overnight. The Airport Reporting Officer will record parked aircraft on their first inspection of the day. Parking charges do not apply to RPT aircraft and operators exempted by Council.

Parking Fees – Fixed Wing and Rotary Wing Aircraft up to 5,000kg MTOW

C*

Per day, per tonne MTOW.

 

Applies to all visiting aircraft parked anywhere on the airport.

 

Resident and RPT Aircraft are Exempt.

$6.80

$0.68

$7.48

Parking Fees – Fixed Wing and Rotary Wing Aircraft 5,000kg to 10,000kg MTOW

C*

$7.80

$0.78

$8.58

Parking Fees – Fixed Wing and Rotary Wing Aircraft above 10,000kg MTOW

C*

$8.80

$0.88

$9.68

* As per the Pricing Policy, these items are priced so as to return a total cost recovery for the activities provided.

to be placed on public exhibition for a period in excess of 28 days from 2 December to 3 January 2018 and invite public submissions on the proposed reinstatement of fees and charges

f        receives a further report following the public exhibition period:

i         addressing any submission made in respect of the proposed fees and charges

ii        proposing adoption of the reinstated fees and charges to come into effect from 1 July 2017 and the new fees to come into effect from the date of Council adoption, unless there are any recommended amendments that will require a further public exhibition period

 

Report

At the Ordinary Meeting of Council held on 25 September 2017, Council resolved:

 

That Council:

a       endorses the reinstatement of the following fees and charges for 2017/18 from 1 July 2017:

Fee and Charge Description

Pricing Policy ID

Basis

2017/18 Fee (exclusive of GST)

GST

2017/18 Fee (inclusive of GST)

Locally based freight operations annual landing agreement (per engine)

D*

Per tonne per annum (manufacturers MTOW)

$151.09

$15.11

$166.20

Replacement for lost parking permit

D

Each

$50.00

$5.00

$55.00

Annual landing agreement – private aircraft

D

Per tonne per annum (manufacturers MTOW)

 

 

$150.00

$15.00

$165.00

Annual landing agreement – commercial and pilot training aircraft

D

Per tonne per annum (manufacturers MTOW)

$300.00

$30.00

$330.00

Landing charge – fixed wing aircraft (non RPT)

D

Per tonne per annum (manufacturers MTOW)

$12.36

$1.24

$13.60

Landing charge – rotary wing aircraft (non RPT)

D

Per tonne per annum (manufacturers MTOW)

$6.18

$0.62

$6.80

* As per the Pricing Policy, these items are priced to cover the cost of the item plus normal commercial mark-ups.

to be placed on public exhibition for a period of 28 days from 30 September to 28 October and invite public submissions on the proposed reinstatement of fees and charges

b       notes that the fees outlined above do not incorporate the annual increase of 3%

c        endorses the following new fees and charges for 2017/18 from the date of Council adoption for:

Fee and Charge Description

Pricing Policy ID

Basis

2017/18 Fee (exclusive of GST)

GST

2017/18 Fee (inclusive of GST)

Parking Fees – Fixed Wing and Rotary Wing Aircraft up to 5,000kg MTOW

C*

Applies to all visiting aircraft parked anywhere on the airport. Resident and RPT Aircraft are Exempt

$6.80

$0.68

$7.48

Parking Fees – Fixed Wing and Rotary Wing Aircraft 5,000kg to 10,000kg MTOW

C*

$7.80

$0.78

$8.58

Parking Fees – Fixed Wing and Rotary Wing Aircraft above 10,000kg MTOW

C*

$8.80

$0.88

$9.68

* As per the Pricing Policy, these items are priced so as to return a total cost recovery for the activities provided.

to be placed on public exhibition for a period of 28 days from 30 September to 30 October and invite public submissions on the proposed reinstatement of fees and charges

d       receives a further report following the public exhibition period:

i        addressing any submission made in respect of the proposed fees and charges

ii        proposing adoption of the reinstated fees and charges to come into effect from 1 July 2017 and the new fees to come into effect from the date of Council adoption, unless there are any recommended amendments deemed to be substantial and requiring a further public exhibition period

 

During the public exhibition period, Council received six written submissions. Members of the Airport Advisory Committee also raised questions with officers in relation to the proposed fees and charges.

 


The submissions received have been summarised in the following table:

 

Summary of Feedback Received

Officer’s Response

Reinstatement of Fees

General support with regard to the reinstatement of fees from 1 July 2017.

No response required.

Suggested that the annual fees could be subject to annual CPI increases in the future.

Officers agree with an annual increase and would be recommending that the fees are increased in accordance with the Council’s Pricing Policy in the future.

Supports annual landing or a per landing fee. Suggests that all aircraft including general aviation and light sports which could be subject to annual CPI increases in the future.

All general aviation and light sports aircraft (where they can be identified) are charged landing fees. Officers would recommend that fees are increased in accordance with the Council’s Pricing Policy in the future.

New Parking Fees for Visiting Aircraft

Recommends not to introduce the proposed new parking fee for visiting aircraft on the basis that operators already pay a landing fee.

The landing fees charged are at an insufficient level to ensure infrastructure relating to the runway, taxiways and aprons can be maintained and/or renewed. Parking fees will assist to recoup the $6.2 million that has been invested in the airport mainly for aircraft that require parking facilities.

Parking fees are suggested to be discriminatory against visiting aircraft when compared to camping and the parking of motor homes and caravans at Wilks Park free of charge.

The parking fees for visiting aircraft are directly aligned with the concept of equity and fair recovery of the infrastructure investment at the airport.

Support exemption of locally based aircraft and introducing parking charges for larger aircraft (in excess of 5,000 kg) on the basis that recreational and private aircraft operators provide a benefit to the economy.

The visiting aircraft, like all aircraft, exert stress on apron surfaces and take up space. In considering equity, all aircraft, irrespective of size, should contribute to the overall investment in the airport infrastructure.

Introduction of parking fees for visiting private light aircraft will impact on tourism however comfortable charging commercial operators.

220,000 passengers travelling through the airport per annum currently pay 81.1% of the total aviation relating income. It is unclear as to what the actual impact on tourism may be unless a fee is introduced with parking fees being charged at other airports.

Unclear from the proposed charges whether the fee is per hour, per day or per week.

Further clarity has been provided. The fee is proposed to be a per tonne (MTOW), per day charge where non‑resident aircraft have parked at the Wagga Wagga Airport overnight. The Airport Reporting Officer will record parked aircraft on their first inspection of the day.

New parking charges may deter operators bringing their aircraft to Wagga for service and maintenance and will be less attractive, particularly for the smaller, private / recreational aircraft.

All maintenance activities are based around the Western GA Apron and the Commercial Precinct. Aircraft parked in front of the maintenance hangars have actually been handed over to that resident maintenance organisation, and is not considered to be a parked aircraft if it is within the parking clearance area in front of such a hangar. The new parking charges should not therefore have any impact on operators from bringing their aircraft to Wagga for service and maintenance.

 

In accordance with the Office of Local Government’s “Pricing & Costing for Council Businesses – A Guide to Competitive Neutrality” the Wagga Wagga Airport is a category 1 business (greater than $2M gross operating revenue turnover) given its commercial characteristics, and has been reporting in the Council’s Financial Statements accordingly.

 

In accordance with Council’s POL 013 Return on Investment Council Businesses Policy, the Wagga Wagga Airport aims to achieve a positive return on investment and pay a dividend of 25% of the Surplus Result from Continuing Operations before Capital Amounts to the General Fund of Council by 2020. Council should note that for the financial year ended 30 June 2017, there was no dividend returned to the General Fund of Council.

 

It is important that the Airport is operated in a similar manner to a commercial business in order to achieve Council’s Policy position, while still ensuring that equity is applied across all user groups. It is for this reason that Officers are recommending to retain the new parking fees for visiting aircraft under 5,000 kg. A significant amount of investment has taken place to accommodate light aircraft, which should be recouped. This will ensure that funds are also available for future renewal and maintenance associated with the infrastructure servicing this particular group of aircraft.

 

Other councils within the region have adopted aircraft parking charges. These have been included for comparison purposes only:

 

 

 

2017/18 GST Inclusive

 

Albury Airport

Locally based operators up to 5,700kg

Per annum

$370

 

Locally based operators over 5,700kg

Per annum

On application

 

Non RPT & Charter Aircraft on RPT Apron – Aircraft <10,000kg MTOW

Per 24 hour or part thereof

$100

Per 24 hour period of part thereof (First 4 hours no charge)

Non RPT & Charter Aircraft on RPT Apron – Aircraft >10,000kg MTOW

Per 24 hour period or part thereof

 

 

 

$200

Per 24 hour period of part thereof (First 4 hours no charge)

Griffith Airport

First week

 

Free

 

-     1 week to 1 month

Per night

$11.40

 

-     1 month to 1 year

Per night

$9.30

 

-     1 year

Annual

$2,485.00

 

 

In order to provide further clarification and to ensure that the proposed fees and charges are clear to all airline operators, Officers are recommending that minor amendments are made. Any amendments to fees and charges require Council to provide public notice in accordance with s610F(3) of the Local Government Act 1993.

 

Financial Implications

The revenue received during 2016/17 relating to the fees and charges proposed to be reinstated was approximately $90,940. These funds are placed into the Airport Reserve to fund the maintenance, operations and infrastructure program at the Airport.

 

It is unclear as to how much revenue would be generated from the proposed new parking fees at this time, and while initial estimates were in the vicinity of $100K per annum, this would be proportionate with the timing of their introduction.

Policy and Legislation

Local Government Act 1993

Chapter 15, Part 10, Division 1

 

608 Council fees for services

(1)  A council may charge and recover an approved fee for any service it provides, other than a service provided, or proposed to be provided, on an annual basis for which it is authorised or required to make an annual charge under section 496 or 501.

(2)  The services for which an approved fee may be charged include the following services provided under this Act or any other Act or the regulations by the council:

•    supplying a service, product or commodity

•    giving information

•    providing a service in connection with the exercise of the council’s regulatory functions—including receiving an application for approval, granting an approval, making an inspection and issuing a certificate

•    allowing admission to any building or enclosure.

(8)  An approved fee charged in connection with a service provided at an airport established and maintained by the council may be recovered from the holder of the certificate of registration issued under the Civil Aviation Regulations of the Commonwealth for the aircraft in respect of which the service was provided. This subsection applies whether or not the holder is the person to whom the service is actually provided.

 

610B Fees to be determined in accordance with pricing methodologies

(1)  A council may determine a fee to which this Division applies only in accordance with a pricing methodology adopted by the council in its operational plan prepared under Part 2 of Chapter 13.

(2)  However, a council may at any time determine a fee otherwise than in accordance with a pricing methodology adopted by the council in its operational plan, but only if the determination is made by a resolution at an open meeting of the council.

 

610D How does a council determine the amount of a fee for a service?

(1)  A council, if it determines the amount of a fee for a service, must take into consideration the following factors:

(a) the cost to the council of providing the service,

(b) the price suggested for that service by any relevant industry body or in any schedule of charges published, from time to time, by the Department,

(c) the importance of the service to the community,

(d) any factors specified in the regulations.

(2)  The cost to the council of providing a service in connection with the exercise of a regulatory function need not be the only basis for determining the approved fee for that service.

(3)  A higher fee or an additional fee may be charged for an expedited service provided, for example, in a case of urgency.

 

610F Public notice of fees

(1)  A council must not determine the amount of a fee until it has given public notice of the fee in accordance with this section and has considered any submissions duly made to it during the period of public notice.

(2)  Public notice of the amount of a proposed fee must be given (in accordance with section 405) in the draft operational plan for the year in which the fee is to be made.

(3)  However, if, after the date on which the operational plan commences:

(a) a new service is provided, or the nature or extent of an existing service is changed, or

(b) the regulations in accordance with which the fee is determined are amended,

the council must give public notice (in accordance with section 705) for at least 28 days of the fee proposed for the new or changed service or the fee determined in accordance with the amended regulations.

(4)  This section does not apply to a fee determined by a council for an application made in a filming proposal, if that fee is consistent with a scale or structure of fees set out in an applicable filming protocol.

 

Local Government (General) Regulation 2005

 

201   Annual statement of council’s revenue policy

 

(1)  The statement of a council’s revenue policy for a year that is required to be included in an operational plan under section 405 of the Act must include the following statements:

(a)  a statement containing a detailed estimate of the council’s income and expenditure,

(b)  a statement with respect to each ordinary rate and each special rate proposed to be levied,

 

Note.  The annual statement of revenue policy may include a note that the estimated yield from ordinary rates is subject to the specification of a percentage variation by the Minister if that variation has not been published in the Gazette when public notice of the annual statement of revenue policy is given.

(c)  a statement with respect to each charge proposed to be levied,

(d)  a statement of the types of fees proposed to be charged by the council and, if the fee concerned is a fee to which Division 3 of Part 10 of Chapter 15 of the Act applies, the amount of each such fee,

(e)  a statement of the council’s proposed pricing methodology for determining the prices of goods and the approved fees under Division 2 of Part 10 of Chapter 15 of the Act for services provided by it, being an avoidable costs pricing methodology determined by the council in accordance with guidelines issued by the Director-General,

(f)  a statement of the amounts of any proposed borrowings (other than internal borrowing), the sources from which they are proposed to be borrowed and the means by which they are proposed to be secured.

(4)  The statement of fees and the statement of the pricing methodology need not include information that could confer a commercial advantage on a competitor of the council.

 

Link to Strategic Plan

Community Leadership and Collaboration

Objective: We have strong leadership

Outcome: We plan long term

 

Risk Management Issues for Council

If the Council determines not to reinstate the fees and charges, there will be a negative impact on the Airport Reserve, which will further impact on the ability of the Airport to maintain and develop its infrastructure and operational programs.

Internal / External Consultation

The Council’s Community Engagement Strategy and IAP2 considers the community to be “any individual or group of individuals, organisation or political entity with an interest in the outcome of a decision….”