Ordinary Meeting of Council

 

 

 

To be held on
Monday
26 March 2018

AT 6.00pm

 

 

 

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

 

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

In pursuance of the provisions of the Local Government Act, 1993 and the Regulations there under, notice is hereby given that an Ordinary Meeting of the Council of the City of Wagga Wagga will be held in the Council Chamber, Civic Centre, Corner Baylis and Morrow Streets, Wagga Wagga, on Monday 26 March 2018 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 Peter Thompson

General Manager

 

 

 

 

 

 

 

QUORUM

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

COUNCIL MEETING ROOM

 

 

 

 

Ordinary Meeting of Council AGENDA AND BUSINESS PAPER

Monday 26 March 2018

ORDER OF BUSINESS:

CLAUSE      PRECIS                                                                                                     PAGE

PRAYER                                                                                                                       3

ACKNOWLEDGEMENT OF COUNTRY                                                                          3

APOLOGIES                                                                                                                 3

CONFIRMATIONS OF MINUTES                                                                                   3

DECLARATIONS OF INTEREST                                                                                    3

Motions Of Which Due Notice Has Been Given

NOM-1         NOTICE OF MOTION - AIR COMPRESSOR ACCESSIBILITY AT WAGGA WAGGA BEACH                                                                                                      4

NOM-2         NOTICE OF MOTION - MANAGEMENT OF DERELICT HOUSES AND BUILDINGS                                                                                                                  5

Reports from Staff

RP-1            DA16/0595 - 24 LOT SUBDIVISION, BEST STREET, URANQUINTY, LOT 1 SEC 7 DP 759024                                                                                                 6

RP-2            DA18/0014 - CONTINUED USE OF PERGOLA, FIREPLACE AND PRIVACY SCREEN. 10 MACLEAY STREET, TURVEY PARK, LOT 11, DP 37353      10

RP-3            PLANNING PROPOSAL LEP17/0004 TO AMEND THE WAGGA WAGGA LOCAL ENVIRONMENTAL PLAN 2010                                                                 14

RP-4            AMENDMENT TO WAGGA WAGGA DEVELOPMENT CONTROL PLAN 2010 - CUT AND FILL AND NATURAL RESOURCE AND LANDSCAPE MANAGEMENT 30

RP-5            Street Sweeper Stockpile - Waiving of Gregadoo Waste Management Centre Fees                                                                84

RP-6            Financial Performance Report as at 28 February 2018         87

RP-7            City Representation at the Annual RAF Memorial Ceremony in Hamont-Achel, Belgium                                                                  107

RP-8            KOORINGAL CASUAL CHILDCARE CENTRE INC - APPLICATION OF SEAL TO LEASE AGREEMENT                                                                             110

RP-9            Botanic Gardens Capital Works                                                 112

RP-10          Tumut District ANZAC Centenary Committee Sculpture Project  114

RP-11          Petition - Dunns Road                                                                      117

RP-12          PROPOSED ROAD CLOSURE APPLICATION - BURKINSHAWS LANE, TARCUTTA                                                                                                                119

 

 

RP-13          Performance Report - Combined Delivery Program and Operartional Plan - July - December 2017                                122

RP-14          CREATION OF EASEMENTS WITHIN LOT 114 DP 1213333 AT FOREST HILL    125

RP-15          Skyworks New Year's Eve 2018 Financial Support                 128

RP-16          PROPOSED LICENCE AGREEMENT TO THE WAGGA WAGGA WOMEN'S SHED INC                                                                                                         146

RP-17          Response to Questions/Business with Notice                         152

RP-18          National General Assembly - Call for Motions                    154

RP-19          Bomen Enabling Roads completion                                            157

RP-20          DRAFT WAGGA WAGGA REVISED FLOODPLAIN RISK MANAGEMENT STUDY AND PLAN                                                                                             160

RP-21          REFORECASTING OF 2017/2018 CAPITAL WORKS PROGRAM            208  

Committee Minutes

M-1              SISTER CITY COMMUNITY COMMITTEE MINUTES - 15 FEBRUARY 2018 214   

QUESTIONS/BUSINESS WITH NOTICE                                                                     224

Confidential Reports

CONF-1       MAJOR EVENTS, FESTIVALS AND FILMS SPONSORSHIP APPLICATIONS       225

CONF-2       Bomen Roads Review of Enviromental Factors (REF) implementation                                                                                 226

CONF-3       RFT2018/19 BOLTON PARK AMENITIES UPGRADE                              227

CONF-4       PROPOSED SALE OF COUNCIL PROPERTY - 34 JOHNSTON STREET, WAGGA                                                                                                               228

CONF-5       PROPOSED ASSIGNMENT OF LEASE - C & A RYALS PTY                   229

CONF-6       RFT2018/16 Provision of Trade Services                                     230

CONF-7       COMPULSORY ACQUISITION OF LAND BY RIVERINA WATER COUNTY COUNCIL - LOT 53 DP 1181931 AT LLOYD                                                            231

CONF-8       Riverina Intermodal Freight and Logistics (RIFL) Hub Heads of Agreement                                                                                         232  

 

PRAYER

 

 

ACKNOWLEDGEMENT OF COUNTRY

 

 

APOLOGIES

 

 

Confirmation of Minutes

CM-1              Ordinary Council Meeting - 26 February 2018       

 

Recommendation That the Minutes of the proceedings of the Ordinary Council Meeting held on 26 February 2018 be confirmed as a true and accurate record.

 

Attachments  

1⇩.

Minutes - 26 February 2018

233

 

 

 

 

DECLARATIONS OF INTEREST

 

 

 

Motions Of Which Due Notice Has Been Given

NOM-1           NOTICE OF MOTION - AIR COMPRESSOR ACCESSIBILITY AT WAGGA WAGGA BEACH

Author:          Councillor Dan Hayes

 

Analysis:

This Notice of Motion is being presented to Council to call for a report on options available to install an air compressor at the Wagga Wagga beach.

 

 

Recommendation That Council staff bring forward a report on options on installing an air compressor or similar item at the Wagga Wagga beach.

 

I bring forward this Notice of Motion to:

 

·        Explore the challenges and opportunities of installing an air compressor or similar item at the Wagga Wagga beach

·        Improve the services at the Wagga Wagga beach to allow for floats, bikes and other items to be inflated at the beach rather than beforehand

·        Improve river safety by increasing use of floatation products at the river by inflation occurring at the river therefore allowing users to pack deflated devices when travelling to the river

 

N/A

N/A

Community Leadership and Collaboration

Objective: We have strong leadership

Outcome: We are accountable and transparent

 

No specific issues identified.

N/A

 

 

NOM-2           NOTICE OF MOTION - MANAGEMENT OF DERELICT HOUSES AND BUILDINGS

Author:          Councillor Dan Hayes

 

Analysis:

This Notice of Motion is being presented to Council to call for a report on options available to the Council for the management of derelict houses and buildings.

 

 

Recommendation That Council staff bring forward a report on options on how they can improve the management of derelict houses and buildings.

 

I bring forward this Notice of Motion to:

 

·        Explore the challenges and opportunities of improving the management of derelict houses and buildings

·        Improve the amenity of neighbourhoods where derelict houses and building are located

 

N/A

N/A

Community Place and Identity

Objective: We are proud of where we live and our identity

Outcome: We have a strong sense of place

 

No specific issues identified.

N/A

 

 

  

 

Reports from Staff

RP-1               DA16/0595 - 24 LOT SUBDIVISION, BEST STREET, URANQUINTY, LOT 1 SEC 7 DP 759024

Author:                        Amanda Gray 

General Manager:    Peter Thompson

         

Analysis:

The report is for a development application and is presented to Council for determination. The application has been referred to Council under Section 1.11 of the Wagga Wagga Development Control Plan 2010 (DCP) as more than ten submissions have been received in objection to the proposal.

 

 

Recommendation That Council refuse DA16/0595 subject to the reasons laid out in the Section 4.15 Assessment Report.

 

 

Applicant	Wagga Wagga Local Aboriginal Land Council
Owner	Wagga Wagga Local Aboriginal Land Council
Development Cost	$400,000
Development Description	Subdivision of the subject site into 24 residential lots ranging in size from 666sq.m to 1066sq.m.   Removal of trees to allow for the development of the proposed lots

 

Key Issues

 

·    Compliance with Wagga Wagga LEP and DCP

·    Removal of Native Vegetation

·    Submissions in objection to the development

 

Assessment

 

·    The application site is within the village of Uranquinty and is zoned as RU5 Village.

·    The proposed development is to subdivide an existing vacant block of land into 24 residential lots ranging in size from 666sq.m to 1066sqm.

·    It is proposed to remove 14 trees from the block to allow for the creation of residential building envelopes.

·    The objectives for development in the village zone are to provide for a range of land uses, services and facilities that are associated with a rural village and to protect and maintain the rural village character of the land.

·    The controls relating to development within the villages focus on the need to respect the underlying pattern of subdivision.

·    The surrounding pattern of subdivision is characterised by lots of 2000sq.m in size with 40metre frontages. Whilst there are examples of some smaller lots these are not considered to represent the character of the village.

·    A number of the trees proposed for removal are not dangerous or dying and are to be removed simply to allow for smaller sized residential blocks.

·    The redesign of the development to allow for the retention of trees on larger blocks has been encouraged by Council staff, however the applicants wish to proceed with the proposed layout as presented to Council.

·    The layout is not supported due to not complying with the character of the village and the unnecessary removal of native vegetation.

·    There are a number of submissions in objection to the development.

 

Reasons for Refusal

 

Based on the assessment of the development the application is recommended for refusal based on the following grounds:-

 

·    It is inconsistent with Section 2.3 of the Wagga Wagga Local Environmental Plan 2010, specifically the Zone objectives of RU5 Village as the development does not protect and maintain the rural village character of the land.

 

·    It is inconsistent with Section 6.2 of the Wagga Wagga Development Control Plan 2010 as the development does not respect the underlying subdivision pattern in this part of Uranquinty.

 

·    The proposed development by reason of the loss of native vegetation results in unacceptable impacts to the natural environment.

 

·    The development would create an undesirable precedent for urban type development within this part of Uranquinty which is not in the public interest.

 

Site Location

 

The site is in the northern section of the village of Uranquinty and extends to an area of 2.15hectares. There are a number of trees on the site at present.

 

 

N/A

Wagga Wagga Local Environmental Plan 2010

Wagga Wagga Development Control Plan 2010

 

The Environment

Objective: We plan for the growth of the city

Outcome: We have sustainable urban development

 

As the recommendation is to refuse the application there is the risk that an appeal could be lodged with the Land and Environment Court. The recommended reasons for refusal are justified in the Section 4.15 assessment report.

Full details of the consultation that was carried out as part of the development application assessment is contained in the attached s415 assessment report.

 

 

1.	DA16/0595 - Section 4.15 Assessment Report - Provided under separate cover
2.	DA16/0595 - Plan of Subdivision - Provided under separate cover
3.	DA16/0595 - Plan of Tree Removal - Provided under separate cover

 

 

 

RP-2               DA18/0014 - CONTINUED USE OF PERGOLA, FIREPLACE AND PRIVACY SCREEN. 10 MACLEAY STREET, TURVEY PARK, LOT 11, DP 37353

Author:                        Sam Robins 

General Manager:    Peter Thompson

         

Analysis:

The report is for a development application and is presented to Council for determination. The application has been referred to Council under Section 1.11 of the Wagga Wagga Development Control Plan 2010 (DCP) as the application is development for continued use of a pergola, fireplace and privacy screen at a residential premises, which includes a request to vary a numerical control by greater than 10% that has received an objection.   It is proposed to vary the cumulative site cover of outbuildings which is limited to 8% of the site area under control C4 of Section 9.4.4 of the DCP. The site cover permitted for this lot is 41.98m², the applicant proposes a site cover of 55.89m² being a variation of 33.13% from the control.

 

 

Recommendation That Council approve DA18/0014 for continued use of a pergola, fireplace and privacy screen at 10 Macleay Street, Turvey park Wagga Wagga NSW 2650 subject to the conditions outlined in the Section 4.15 Assessment Report.

 

 

Applicant	Anthony Saliba
Owner	Anthony Saliba and Kristy Saliba
Development Cost	$14,000
Development Description	Continued use of pergola, fireplace and privacy screen

 

Key Issues

 

Variations to DCP Controls

Impact on Conservation Area

 

 

 

Assessment

 

·    The application is for continued use of a pergola, fireplace and privacy screen associated with an existing residential premise within the Conservation Area. The works are practically complete and were brought to Council attention by way of objection.

·    The site is zoned R1 General Residential and is within the Conservation Area.

·    The works are not inconsistent with the objectives of the R1 Zone.

·    The works are to the rear of the dwelling and consistent with the objectives and controls of Sections 2, 3 and 9 of the DCP with the exception of C4 of Section 9.4.4.

·    The variation to C4 of Section 9.4.4 of the DCP relates to the cumulative site cover of outbuildings on the site. The application proposes a variation to C4 of Section 9.4.4 of the DCP. This control states:

 

C4        The total cumulative floor area of all outbuildings on any one property shall not exceed 8% of the site area or a maximum area of 300m2, whichever is the lesser.

 

Under this control, outbuildings may not exceed 41.98m² (8%) of the site. The actual cumulative size of the outbuildings on site is 55.89m². This equates to 10.64% being a variation of 33.13% to the control.

·    The application was notified in accordance with the DCP provisions.

·    Council has received an objection to the application.

·    The assessment concludes that the development is acceptable subject to conditions of consent. 

 

Reasons for Approval

 

1.      The proposed development is consistent with the provisions of Wagga Wagga Local Environmental Plan 2010;

2.      The applicable objectives of Sections 2 and 9 of the DCP are satisfied by the proposed development;

3.      The proposed variations of Control C4 of Section 9.4.4 of the DCP has been justified by the application;

 

Site Location

 

The site, being Lot 11 DP 37353, 10 Macleay Street Turvey Park, is located on the western side of the street five lots south of the junction with Erin Street.

 

 

N/A

Wagga Wagga Local Environmental Plan 2010

Wagga Wagga Development Control Plan 2010

 

The Environment

Objective: We plan for the growth of the city

Outcome: We have sustainable urban development

 

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 application is not considered to raise risk management issues for Council as the proposed development is generally consistent with LEP and DCP controls and the one proposed variation of a control is minor.

Full details of the consultation that was carried out as part of the development application assessment is contained in the attached 4.15 Report.

 

 

1.	DA18-0014 Section 4.15 Report - Provided under separate cover
2.	DA18 -0014 Statement of Environmental Effects  - Provided under separate cover
3.	DA18-0014 Additional Justification - Provided under separate cover
4.	DA18-0014 Plans - Provided under separate cover

 

 

 

 

RP-3               PLANNING PROPOSAL LEP17/0004 TO AMEND THE WAGGA WAGGA LOCAL ENVIRONMENTAL PLAN 2010

Author:          Adriaan Stander 

Director:       Natalie Te Pohe

         

Analysis:

The purpose of this planning proposal is to reduce the minimum lot size for Lot 2 DP1045774, Butterbush Road, Lake Albert from 8 hectares to 4 hectares. This proposal was submitted by the owner, John Duke.

 

 

Recommendation That Council: a       support the submission of a planning proposal to amend the Wagga Wagga Local Environmental Plan 2010 b       submit a planning proposal to the Department of Planning and Environment for Gateway Determination c        receive a further report after the public 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

 

The Proposal

 

Council is in receipt of a planning proposal to amend the Wagga Wagga Local Environmental Plan 2010 to reduce the minimum lot size provisions applicable to Lot 2 DP1046774 from from 8 hectares to 4 hectares as per the illustration below. Currently there is an opportunity to create approximately 7 lots and the proposal will allow the creation of approximately 15 lots.

 

 

The proposed minimum lot size reflects the existing lot sizes in Butterbush Road. A more detailed description of the proposal with supporting information is attached to this report.

 

Site and Locality

 

The subject site is located in a rural residential area within Lake Albert and comprises of 76.64 hectares. It is zoned RU4 Primary Production Small Lots, with a minimum lot size requirement of 8 hectares under Clause 4.1 of the Wagga Wagga Local Environmental Plan 2010. Surrounding lots range between 1.29 and 221 hectares in size.

 

The property gains access off Butterbush Road, which is a sealed public road that extends to the southern boundary of the subject land. A crown road (an extension of Cummins Road) forms a separation buffer to agricultural land adjacent to the east. The crown road potentially may also provide access for any future development of the land.

 

Key Issues

 

1.      Strategic intention for the locality

 

The proposal aligns with a number of directions under the Riverina Murray Regional Plan 2036 as well as the Wagga Wagga Spatial Plan 2013/2043 that support the growth of regional cities and greater housing choice. One of the directions of the Spatial Plan is to consider the reduction of minimum lot sizes in Lake Albert as part of a residential study. The Wagga Wagga Activation Strategy that is currently in draft will replace the Spatial Plan. It will reinforce the current actions of the Spatial Plan requiring further investigation into the intensification of this locality through a Housing Strategy that is already underway. The proponent has provided sufficient justification to support the proposal to proceed and not hold off until the completion of the anticipated land use strategies.

 

2.      Subdivision pattern

 

The existing Butterbush Road subdivision was developed between 2000 and 2008. The original parcel of land was approximately 170 hectares in size. Under the superseded Rural Development Control Plan of 2002, the land was zoned for small holding development with an average lot size of 8 hectares. Historically Council allowed the subdivision of small holding areas under the Rural Development Control Plan based on the average lot size as opposed to the minimum lot size. This allowed the land to be subdivided into 21 lots. The 21^st lot (the subject land) was retained as a residue lot with the intention to further subdivide in the future.

 

There are opportunities to reduce the minimum lot size for the broader precinct and this will be considered as part of the Housing Strategy that is currently underway. The proposal to reduce the minimum lot size for the subject site to 4 hectares will allow the subdivision of the land consistent with the existing lot size and subdivision pattern along Butterbush Road. It will also provide greater flexibility in the subdivision design to improve integration with surrounding developments and create the potential to connect Butterbush Road to Dukes Road in the future.

 

 

 

 

3.      Services

 

The proponent has undertaken a service feasibility study to demonstrate that newly created lots as a result of a future subdivision of the subject site are able to be serviced. The report concludes that any future lots would be adequately serviced.

 

Assessment

 

This application has been considered in respect to the benefits for the community and the matters discussed in this report are all reflections of the public interest and community expectations through strategic direction and policy guiding documents. The proposal is supported for the following reasons:

 

1.      Generally complies with the provisions of the endorsed strategic documents, including Riverina Murray Regional Plan 2036 and Wagga Wagga Spatial Plan 2013-2043. Where inconsistencies exist, they have been justified. 

2.      Aligns with the Draft Wagga Wagga Activation Strategy that will replace the Wagga Wagga Spatial Plan 2013-2043.

3.      Meets all relevant Section 9.1 (previously Section 117) Ministerial Directions.

4.      Addresses all applicable State Environmental Planning Policies.

5.      Demonstrates that services can be provided to any future lots.

6.      Will result in lot sizes similar to existing lots along Butterbush Road.

 

Taking into account the full range of matters that have been considered as part of this assessment, it is considered that an approval of the proposal is reasonable and in the public’s interest. The full assessment report is attached to this report.

 

Next Steps

 

To comply with the NSW Department of Planning and Environment guidelines, and to support the planning proposal, Council staff will prepare a proposed timeline and additional information as an addendum to the proposal prior to submitting for Gateway Determination.

In accordance with Council’s 2017/18 Fees & Charges, a Medium LEP Amendment (Medium Complexity) has a total application fee of $10,500 for which the proponent has paid. There are no requirements to amend the DCP therefore the $2,000 is not required to be paid in this instance.

Wagga Wagga Local Environmental Plan 2010.

The Environment

Objective: We plan for the growth of the city

Outcome: We have sustainable urban development

 

·        An approval of the proposal may be subject to public scrutiny during the public consultation process and may put additional pressure on Council to consider the reduction of the minimum lot size requirements throughout the local government area.

·        Refusal of the application may result in an appeal process. The applicant has the ability to appeal Council’s decision by submitting the planning proposal to the Department of Planning and Environment through the pre-gateway review process. The reasons for refusal will have to be justified and withstand scrutiny and cross examination.

Consultation has commenced via internal referral. The proposal is supported.

Formal public consultation with adjoining land owners, the general public and referral agencies will occur after the Gateway Determination.

 

Note:         This proposal is of medium complexity. Planning proposals of major complexity or proposals involving more than one land owner are subject to additional public consultation prior to the Gateway Determination.

 

 

1.	LEP17/0004 - Application - Provided under separate cover
2⇩.	LEP17/0004 - Assessment Report

 

 

 

 

RP-4               AMENDMENT TO WAGGA WAGGA DEVELOPMENT CONTROL PLAN 2010 - CUT AND FILL AND NATURAL RESOURCE AND LANDSCAPE MANAGEMENT

Author:          Crystal  Golden 

Director:       Natalie Te Pohe

         

Analysis:

This report is to amend the Wagga Wagga Development Control Plan 2010 (the DCP) to reflect changes to legislation and to provide more flexible controls in relation to cut and fill.

 

 

Recommendation That Council: a       support the amendment to the Wagga Wagga Development Control Plan 2010 b       place the amendment on public exhibition from 31 March 2018 to 30 April 2018 (inclusive) and invite public submissions on the amendment until 14 May 2018 c        receive a further report following the exhibition and submission period i         addressing any submissions made in respect of the amendment ii        proposing adoption of the amendment unless there are any recommended amendments deemed to be substantial and requiring a further public exhibition period

 

Council is currently undertaking a review of the Wagga Wagga Development Control Plan 2010 (DCP) with the aim to rewrite the DCP due to inconsistencies and difficulties experienced with interpreting the provisions. The rewrite will align the DCP with recent strategic documents, guides and directives.

 

The DCP rewrite is an extensive project and due to the timeframes associated with a rewrite; an interim amendment has been prepared to address pressing issues that need immediate attention.

 

Below are the details of the proposed amendments:

 

Section 5 – Natural Resource and Landscape Management:

Biodiversity reforms introduced the Biodiversity Conservation Act 2016 and amended the Local Land Services Act 2013. These changes commenced on 25 August 2017 to support sustainable development and productive farming that responds to environmental risk.

 

The reforms also repealed the Native Vegetation Act 2003, Threatened Species Conservation Act 1995 and the Nature Conservation Trust Act 2001.

 

The proposed amendments update references to legislation in line with the biodiversity reforms as well as tidy up other incorrect references. The proposed amendments are attached to this report.

 

 

 

Section 9 – Residential Development – Changing the landform – cut and fill

The proposed amendments to Section 9 relating to cut and fill will bring the controls in line with the current practices for approvals. This will streamline the process for both Development Assessment staff and the community.

 

The amendments propose to:

 

§  Remove the need for developers to obtain adjoining land owners consent.

§  Identify that Council will notify neighbours as part of the development application process.

§  Apply a consistent excavation height of 1.5m within 1m of the boundary.

§  Undertake administrative changes to clarify controls.

 

The proposed amendments are attached to this report.

 

As this is an internally generated amendment to the Wagga Wagga Development Control Plan 2010, the collection of application fees is not required.

Biodiversity Conservation Act 2016

Local Land Services Act 2013

Wagga Wagga Development Control Plan 2010

The Environment

Objective: We plan for the growth of the city

Outcome: We have sustainable urban development

No specific issues identified.

Staff have received support for the proposed amendments from the relevant internal sections of Council.

 

If the proposed amendments are endorsed, public exhibition will be undertaken for the minimum requirement of 28 days with a public submission period of 42 days. Notification of the public exhibition will be provided in the local paper and on Council’s website.

 

 

1⇩.	DCP Amendment - Section 9 - Residential Development - Changing the Landform - Cut and Fill Controls
2⇩.	DCP Amendment - Section 5 - Natural Resource and Landscape Managment

  

 

 

 

RP-5               Street Sweeper Stockpile - Waiving of Gregadoo Waste Management Centre Fees

Author:          Stephen Jewell 

Director:       Caroline Angel

         

Analysis:

The purpose of this report is to seek a waiver in Gregadoo Waste Management Centre (GWMC) weighbridge fees to transfer legacy street sweeper material currently stockpiled at Narrung Street.

 

 

Recommendation That Council: a       endorse the waiving of Gregadoo Waste Management Centre (GWMC) weighbridge fees for approximately 5,000 tonne of Council’s street sweeper material b       approve the budget variation as detailed in the budget section of the report

 

Street sweeper material has been stockpiled at Narrung Street for approximately 10 - 12 years. This site is used because of its close proximity to the CBD, where the majority of the sweepings originate. Taking sweeper material directly to the GWMC would drastically curtail the productivity of the sweeper.

 

The location being used was previously adjacent to the sewage treatment plant settling ponds. However, it is now directly opposite the entrance of the Marrambidya Wetlands and is negatively impacting the first impression of one of the city’s newest attractions. The material is also located within the floodplain which is another factor to consider in relation to its location (refer to Image 1).

 

The sweeper material is primarily a mix of dirt, dust and leaves, with a small volume of entrained rubbish (refer to Image 2). A survey of the site conducted in December 2017 estimated the current stockpile at 4,000 cubic metres, equating to approximately 5,000 tonnes of material. Staff investigated the option of using the material as cover for the cell but it cannot be used due to the unknown components in the material.

 

To ensure the present volume does not increase further, the material will be transferred to the GWMC at the end of each month. The cost to transfer the material each month is estimated to be around $3,000. This has been budgeted for in future years. A design for a transfer station has been completed but is presently sitting in the unbudgeted project list, this is estimated to cost in excess of $400,000.

 

To alleviate this legacy, staff are requesting that Council waive the GWMC weighbridge fees of approximately $275,000 for 4,000 cubic metres of material to get on top of the issue. The cost to transfer the material is estimated to be around $26,000 and it is requested that this be funded from the Solid Waste Reserve. 

 

Staff are investigating alternative stockpile sites and re-use opportunities for this material (and other Council materials) in the future to minimise costs and impact on landfill.

 

Image 1 – Site Location

 

 

Image 2 – Stockpile

 

 

The total estimated cost of the weighbridge fees requested to be waived is $275,000. This is calculated by multiplying the estimated 5,000 tonne of material by the 2017/18 GWMC fees and charges rate of $55.00 per tonne.

 

It is proposed to fund the estimated $26,000 cost of transferring the material from Narrung Street to the GWMC from the Solid Waste Reserve. The Solid Waste reserve is in a surplus position and the proposed variation will not have any impact on the financial operation of waste services.

Financial Assistance Policy (POL 078)

Sections 377 and 610 of the Local Government Act 1993

 

The Environment

Objective: We plan for the growth of the city

Outcome: We have healthy natural areas

 

·        If the fee is not waived the cost to transfer the materials to the GWMC will cause a serious overrun of existing operational budgets or curtail the delivery of budgeted services.

·        The material is stockpiled within the floodplain and is outside the levee.

·        The material is currently located at the entrance of one of the city’s tourist attractions.

Consultation has occurred between the Manager Operations, Manager GWMC, Manager City Compliance and the Executive.

 

  

 

 

 

RP-6               Financial Performance Report as at 28 February 2018

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 28 February 2018.

 

 

Recommendation That Council: a       approve the proposed 2017/18 budget variations for the month ended 28 February 2018 and note the surplus 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)       Beechworth to Bridge Walk Committee                                          $     85.00 ii)      East Wagga Kooringal Football and Netball Club Inc.                 $3,708.00 d       note details of the external investments as at 28 February 2018 in accordance with section 625 of the Local Government Act

 

Wagga Wagga City Council (Council) forecasts a surplus budget position of $7K as at 28 February 2018. Proposed funded budget variations are detailed in this report for Council’s consideration and adoption.

 

Council has experienced a negative monthly investment performance for the month of February.

 

Key Performance Indicators

 

 

 

OPERATING INCOME

Total operating income is 67% of approved budget, which is tracking to budget for the end of February (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 86%.

 

OPERATING EXPENSES

Total operating expenditure is 64% of approved budget and is tracking to budget for the full financial year.

 

CAPITAL INCOME

Total capital income is 17% 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. This income also includes the sale of property, plant and equipment.

 

CAPITAL EXPENDITURE

Total capital expenditure including commitments is 38% of approved budget.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revised Budget Result - Surplus/(Deficit)	$’000s
Original 2017/18 Budget Result as adopted by Council Total Budget Variations approved to date Budget variations for February 2018 RP-9 – Botanic Gardens report	$0 $7K $20K ($20K)
Proposed revised budget result for 28 February 2018	$7K

 

The proposed Budget Variations to 28 February 2018 are listed below:

 

 

Current Restrictions

 

WAGGA WAGGA CITY COUNCIL   RESERVES SUMMARY
28 FEBRUARY 2018
	CLOSING BALANCE 2016/17	ADOPTED RESERVE TRANSFERS 2017/18	BUDGET VARIATIONS APPROVED UP TO COUNCIL MEETING 26.02.18	PROPOSED CHANGES for Council Resolution	REVISED BALANCE
Externally Restricted
Developer Contributions	(21,947,807)	3,374,249	4,733,577	(26,333)	(13,866,315)
Sewer Fund	(24,045,646)	1,229,992	4,609,319	(76,483)	(18,282,818)
Solid Waste	(15,824,723)	4,878,008	1,451,193	(20,997)	(9,516,519)
Specific Purpose Unexpended Grants/Contributions	(4,956,776)	0	4,956,776		0
SRV Levee	(1,167,316)	0	1,167,316		0
Stormwater Levy	(2,940,246)	(587,206)	451,268		(3,076,184)
Total Externally Restricted	(70,882,514)	8,895,043	17,369,449	(123,813)	(44,741,835)
Internally Restricted
Airport	(371,610)	(386,660)	266,472		(491,798)
Art Gallery	(30,990)	(21,000)	0		(51,990)
Ashmont Community Facility	(4,500)	(1,500)	0		(6,000)
Bridge Replacement	(240,240)	(100,000)	153,573		(186,667)
CBD Carparking Facilities	(891,982)	0	129,191		(762,792)
CCTV	(64,476)	(10,000)	0		(74,476)
Cemetery Perpetual	(157,605)	(125,146)	144,084		(138,667)
Cemetery	(193,116)	(161,330)	100,000		(254,446)
Civic Theatre Operating	0	(50,000)	0		(50,000)
Civic Theatre Technical Infrastructure	(105,450)	(50,000)	57,100		(98,350)
Civil Projects	(155,883)	0	0		(155,883)
Community Amenities	(5,685)	0	0		(5,685)
Community Works	0	0	(62,869)		(62,869)
Council Election	(166,776)	(73,095)	0		(239,871)
Emergency Events	(133,829)		(57,331)		(191,160)
Employee Leave Entitlements Gen Fund	(3,184,451)	0	0		(3,184,451)
Environmental Conservation	(131,351)	0	0		(131,351)
Estella Community Centre	(230,992)	0	0		(230,992)
Family Day Care	(169,356)	(123,944)	0		(293,300)
Fit for the Future	(3,033,479)	(2,265,725)	606,074	(127,162)	(4,820,292)
Generic Projects Saving	(1,040,610)	20,000	93,727		(926,883)
Glenfield Community Centre	(17,704)	(2,000)	0		(19,704)
Grants Commission	(4,956,776)	0	4,956,776		0
Grassroots Cricket	(70,992)	0	0		(70,992)
Gravel Pit Restoration	(761,422)	0	25,000		(736,422)
Gurwood Street Property	(50,454)	0	0		(50,454)
Information Services	(378,713)	250,000	8,000		(120,713)
Infrastructure Replacement	(136,098)	(48,071)	954		(183,215)
Insurance Variations	(28,644)	0	0		(28,644)
Internal Loans	(674,661)	(851,794)	850,468		(675,986)
Lake Albert Improvements	(53,867)	(50,000)	56,078		(47,789)

 

WAGGA WAGGA CITY COUNCIL   RESERVES SUMMARY
28 FEBRUARY 2018
	CLOSING BALANCE 2016/17	ADOPTED RESERVE TRANSFERS 2017/18	BUDGET VARIATIONS APPROVED UP TO COUNCIL MEETING 26.02.18	PROPOSED CHANGES for Council Resolution	REVISED BALANCE
LEP Preparation	(28,301)	14,636	11,120		(2,545)
Livestock Marketing Centre	(7,267,731)	(1,180,017)	4,053,725		(4,394,024)
Museum Acquisitions	(39,378)	0	0		(39,378)
Oasis Building Renewal	(172,000)	(32,147)	121,000		(83,147)
Oasis Plant	(1,115,347)	90,000	85,770		(939,577)
Parks & Recreation Projects	(79,648)	0	74,360		(5,288)
Pedestrian River Crossing (old Riverside)	(198,031)	48,031	150,000		0
Plant Replacement	(5,893,831)	1,804,934	1,059,675		(3,029,223)
Playground Equipment Replacement	(59,181)	(105,679)	0		(164,860)
Project Carryovers	(1,276,882)	0	1,276,882		0
Public Art	(173,283)	(23,669)	53,969		(142,983)
Robertson Oval Redevelopment	(86,697)	0	0		(86,697)
Senior Citizens Centre	(13,627)	(2,000)	0		(15,627)
Sister Cities	(36,527)	(10,000)	0		(46,527)
Stormwater Drainage	(183,420)	0	25,177		(158,242)
Strategic Real Property	(702,792)	0	(380,000)		(1,082,792)
Street Lighting Replacement	(74,755)	(30,000)	0		(104,755)
Subdivision Tree Planting	(272,621)	(20,000)	0		(292,621)
Sustainable Energy	(520,442)	35,000	60,000		(425,442)
Traffic Committee	(50,000)	(50,000)	0	60,000	(40,000)
Total Internally Restricted	(35,686,205)	(3,511,177)	13,918,973	(67,162)	(25,345,571)
Total Restricted	(106,568,720)	5,383,866	31,288,423	(190,975)	(70,087,406)

 

Section 356 Financial Assistance Requests

 

Two Section 356 Donation requests have been received for consideration at the

26 March 2018 Ordinary Council meeting.

 

Details of the donation requests are shown below:

 

·        Beechworth to Bridge Walk Committee  $85.00

 

The Beechworth to Sydney Harbour Bridge Walk group has requested the waiver of the hire fees for Bolton Park on the 6 April 2018 as part of the Beechworth to Sydney Harbour Bridge Mental Health Awareness Walk.

 

The group aims to raise awareness and remove stigma of mental health and suicide.

 

The above request aligns with Council’s Strategic Plan “Safe and Healthy Community – Outcome: we promote a healthy lifestyle”.

 

·        East Wagga Kooringal Football and Netball Club Inc. $3,708

 

The East Wagga Kooringal Football and Netball Club Inc. has requested Council’s  consideration for the donation of the costs of supplying an E1 Pressure Sewer  Pump which Council currently supplies at cost ($3,708) to residents wishing to install a E1 Pressure Sewer Pump on their property.

 

East Wagga Kooringal Football and Netball Club Inc. in their attached letter advise that they are constructing a new Amenities Block at Gumly Gumly (Gumly Oval managed by Gumly Trust).

 

The Gumly Oval grounds are used by various sporting groups including East Wagga Kooringal Football and Netball Club.

 

The Club President notes in the attached letter:

 

‘As you are most likely aware the Gumly Oval and Amenities are run by the Gumly Trust who in turn Lease the Ground to our Football Club. As such, the Football Club covers all Maintenance and improvement costs for the Ground and Amenities, a significant cost borne by the Members of the Club. These Amenities are available for use by a number of different organisations, at no cost to them. Organisations including Riverina Lions AFC – Training each week during the Football Season, Junior Representative Teams from Wagga and the Riverina – Training for representative Matches, Indigenous Football Carnival – held each Year and a number of other Charitable Bodies that require the Amenities that we have.”

 

Discussions with Club representative’s notes that the installation costs of the E1 Pressure Sewer Pump will be donated by voluntary labour (a qualified plumber).

 

The above request aligns with Council’s Strategic Plan :

 

Safe and Healthy Community – We promote participation across a variety of Sports and Recreation.

 

It is proposed that the cost of providing an E1 Pressure Sewer Pump from Council’s Depot Stores Inventory of $3,708 be funded from the Sewer Fund. The Sewer Fund has capacity to fund this request due to substantial savings in the Sewer Reserve following the withdrawal of the Oura Village and San Isidore Village Sewer Schemes in 2017/18. It is further noted that an additional $76,000 in interest income for the Sewer Fund has been advised as a positive budget variation in this report.

 

(Please note: The S356 Donation to the East Wagga Kooringal Football and Netball Club Inc. is proposed to be funded from the Council Sewer Fund and is thus excluded from the General Fund S356 available funds reconciliation below.)

 

General Fund Section 356 financial assistance available budget	$3,201.78
Beechworth to Sydney Harbour Bridge Walk Group	($85.00)
Total Section 356 Financial Assistance Requests – 26 February     2018 Council Meeting	($85.00)
Proposed balance of Section 356 financial assistance budget – available for requests received for the remainder of this financial year	$3,116.78

 

 

Investment Summary as at 28 February 2018

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 31/01/2018 $	Closing Balance Invested 28/02/2018 $	February EOM Current Yield %	February EOM % of Portfolio	Investment Date	Maturity Date	Term (months)
Short Term Deposits
Banana Coast CU	NR	1,000,000	1,000,000	2.80%	0.81%	2/06/2017	1/06/2018	12
AMP	A	2,000,000	2,000,000	2.80%	1.61%	2/06/2017	1/06/2018	12
AMP	A	2,000,000	2,000,000	2.60%	1.61%	2/08/2017	2/08/2018	12
CUA	BBB	1,000,000	1,000,000	2.75%	0.81%	3/03/2017	2/03/2018	12
NAB	AA-	2,000,000	2,000,000	2.60%	1.61%	8/09/2017	7/09/2018	12
ME Bank	BBB	2,000,000	2,000,000	2.60%	1.61%	22/08/2017	19/04/2018	8
AMP	A	1,000,000	1,000,000	2.80%	0.81%	8/09/2017	5/06/2018	9
NAB	AA-	2,000,000	2,000,000	2.62%	1.61%	28/09/2017	28/09/2018	12
Auswide	BBB-	2,000,000	2,000,000	2.67%	1.61%	5/10/2017	5/10/2018	12
Auswide	BBB-	1,000,000	1,000,000	2.67%	0.81%	16/10/2017	16/10/2018	12
Auswide	BBB-	2,000,000	2,000,000	2.70%	1.61%	5/12/2017	5/12/2018	12
Auswide	BBB-	1,000,000	1,000,000	2.67%	0.81%	15/12/2017	16/07/2018	7
NAB	AA-	0	2,000,000	2.47%	1.61%	28/02/2018	28/05/2018	3
Police Credit Union	NR	0	2,000,000	2.70%	1.61%	28/02/2018	29/10/2018	8
Total Short Term Deposits		19,000,000	23,000,000	2.66%	18.53%
At Call Accounts
NAB	AA-	855,578	2,208,510	1.50%	1.78%	N/A	N/A	N/A
NAB	AA-	11,858,709	17,380,012	2.19%	14.00%	N/A	N/A	N/A
AMP	A	183,813	184,149	2.15%	0.15%	N/A	N/A	N/A
Beyond Bank	BBB+	149,301	149,438	1.00%	0.12%	N/A	N/A	N/A
CBA	AA-	58,281	65,223	1.35%	0.05%	N/A	N/A	N/A
Total At Call Accounts		13,105,682	19,987,332	2.10%	16.10%
Medium Term Deposits
RaboBank	A+	1,000,000	1,000,000	3.16%	0.81%	5/06/2017	6/06/2022	60
ING Bank	A	3,000,000	3,000,000	2.75%	2.42%	24/08/2017	26/08/2019	24
ME Bank	BBB	2,000,000	2,000,000	4.28%	1.61%	2/09/2014	2/09/2019	60
Rabobank	A+	1,000,000	1,000,000	4.10%	0.81%	5/12/2014	5/12/2019	60
Beyond Bank	BBB+	990,000	990,000	3.70%	0.80%	4/03/2015	4/03/2018	36
Beyond Bank	BBB+	990,000	990,000	3.70%	0.80%	11/03/2015	11/03/2018	36
BOQ	BBB+	2,000,000	2,000,000	3.10%	1.61%	7/07/2017	7/07/2020	36
Newcastle Permanent	BBB	1,000,000	1,000,000	3.00%	0.81%	12/08/2016	12/08/2019	36
Rabobank	A+	1,000,000	1,000,000	3.20%	0.81%	25/08/2016	25/08/2021	60
Newcastle Permanent	BBB	1,000,000	1,000,000	3.00%	0.81%	31/08/2016	30/08/2019	36
Police Credit Union	NR	1,000,000	1,000,000	2.90%	0.81%	8/09/2016	10/09/2018	24
Newcastle Permanent	BBB	2,000,000	2,000,000	3.00%	1.61%	10/02/2017	11/02/2019	24
Westpac	AA-	3,000,000	3,000,000	3.10%	2.42%	10/03/2017	10/03/2022	60
ING Bank	A	1,000,000	1,000,000	2.92%	0.81%	16/10/2017	16/10/2019	24
ING Bank	A	2,000,000	2,000,000	2.92%	1.61%	6/11/2017	6/11/2019	24
BOQ	BBB+	2,000,000	2,000,000	3.35%	1.61%	3/01/2018	4/01/2022	48
ING Bank	A	1,000,000	1,000,000	2.80%	0.81%	5/01/2018	6/01/2020	24
Total Medium Term Deposits		25,980,000	25,980,000	3.20%	20.93%
Institution	Rating	Closing Balance Invested 31/01/2018 $	Closing Balance Invested 28/02/2018 $	February EOM Current Yield %	February EOM % of Portfolio	Investment Date	Maturity Date	Term (months)
Floating Rate Notes - Senior Debt
BOQ	BBB+	2,021,000	2,022,200	BBSW + 110	1.63%	5/08/2014	24/06/2019	58
BOQ	BBB+	1,005,627	1,007,377	BBSW + 107	0.81%	6/11/2014	6/11/2019	60
BOQ	BBB+	1,005,627	1,007,377	BBSW + 107	0.81%	10/11/2014	6/11/2019	60
Newcastle Permanent	BBB	1,005,487	0	0.00%	0.00%	27/02/2015	27/02/2018	36
Macquarie Bank	A	2,031,734	2,021,254	BBSW + 110	1.63%	3/03/2015	3/03/2020	60
Heritage Bank	BBB+	1,001,058	0	0.00%	0.00%	7/05/2015	7/05/2018	36
Heritage Bank	BBB+	1,001,058	0	0.00%	0.00%	9/06/2015	7/05/2018	35
Westpac	AA-	1,010,057	1,011,397	BBSW + 90	0.81%	28/07/2015	28/07/2020	60
Bendigo-Adelaide	BBB+	1,013,497	1,008,357	BBSW + 110	0.81%	18/08/2015	18/08/2020	60
Bendigo-Adelaide	BBB+	1,013,497	1,008,357	BBSW + 110	0.81%	28/09/2015	18/08/2020	59
Westpac	AA-	2,020,114	2,022,794	BBSW + 90	1.63%	30/09/2015	28/07/2020	58
Suncorp-Metway	A+	1,016,956	1,018,866	BBSW + 125	0.82%	20/10/2015	20/10/2020	60
Westpac	AA-	4,059,428	4,064,224	BBSW + 108	3.27%	28/10/2015	28/10/2020	60
AMP	A	1,821,739	1,825,105	BBSW + 110	1.47%	11/12/2015	11/06/2019	42
CBA	AA-	1,017,696	1,019,126	BBSW + 115	0.82%	18/01/2016	18/01/2021	60
Rabobank	A+	2,062,530	2,049,172	BBSW + 150	1.65%	4/03/2016	4/03/2021	60
Newcastle Permanent	BBB	1,011,467	1,013,897	BBSW + 160	0.82%	22/03/2016	22/03/2019	36
CUA	BBB	2,021,554	2,025,554	BBSW + 160	1.63%	1/04/2016	1/04/2019	36
ANZ	AA-	1,019,526	1,020,936	BBSW + 118	0.82%	7/04/2016	7/04/2021	60
Suncorp-Metway	A+	1,022,386	1,024,336	BBSW + 138	0.83%	21/04/2016	12/04/2021	60
AMP	A	1,024,886	1,018,706	BBSW + 135	0.82%	24/05/2016	24/05/2021	60
Westpac	AA-	1,021,916	1,015,847	BBSW + 117	0.82%	3/06/2016	3/06/2021	60
CBA	AA-	1,020,396	1,021,806	BBSW + 121	0.82%	12/07/2016	12/07/2021	60
ANZ	AA-	2,045,352	2,033,272	BBSW + 113	1.64%	16/08/2016	16/08/2021	60
BOQ	BBB+	1,513,541	1,516,436	BBSW + 117	1.22%	26/10/2016	26/10/2020	48
NAB	AA-	1,014,557	1,015,617	BBSW + 105	0.82%	21/10/2016	21/10/2021	60
Teachers Mutual	BBB	1,502,787	1,507,736	BBSW + 140	1.21%	28/10/2016	28/10/2019	36
Bendigo-Adelaide	BBB+	1,012,357	1,007,107	BBSW + 110	0.81%	21/11/2016	21/02/2020	39
Westpac	AA-	1,015,637	1,016,786	BBSW + 111	0.82%	7/02/2017	7/02/2022	60
ANZ	AA-	1,016,196	1,010,347	BBSW + 100	0.81%	7/03/2017	7/03/2022	60
CUA	BBB	757,505	759,028	BBSW + 130	0.61%	20/03/2017	20/03/2020	36
Heritage Bank	BBB+	602,740	604,060	BBSW + 130	0.49%	4/05/2017	4/05/2020	36
Teachers Mutual	BBB	1,004,587	1,007,187	BBSW + 142	0.81%	29/06/2017	29/06/2020	36
NAB	AA-	3,029,841	3,031,311	BBSW + 90	2.44%	5/07/2017	5/07/2022	60
Suncorp-Metway	A+	1,012,677	1,008,227	BBSW + 97	0.81%	16/08/2017	16/08/2022	60
Westpac	AA-	2,006,576	2,009,234	BBSW + 81	1.62%	30/10/2017	27/10/2022	60
ME Bank	BBB	1,502,442	1,505,921	BBSW + 125	1.21%	9/11/2017	9/11/2020	36
NAB	AA-	2,014,234	2,002,356	BBSW + 80	1.61%	10/11/2017	10/02/2023	63
ANZ	AA-	1,502,967	1,503,867	BBSW + 77	1.21%	18/01/2018	18/01/2023	60
Bendigo-Adelaide	BBB+	500,969	502,284	BBSW + 105	0.40%	25/01/2018	25/01/2023	60
Newcastle Permanent	BBB	0	1,504,362	BBSW + 140	1.21%	6/02/2018	6/02/2023	60
Total Floating Rate Notes - Senior Debt		55,304,201	53,771,824		43.32%
Managed Funds
NSW Tcorp	NR	1,382,256	1,378,564	-0.27%	1.11%	17/03/2014	1/02/2023	106
Total Managed Funds		1,382,256	1,378,564	-0.27%	1.11%
Institution	Rating	Closing Balance Invested 31/01/2018 $	Closing Balance Invested 28/02/2018 $	February EOM Current Yield %	February EOM % of Portfolio	Investment Date	Maturity Date	Term (months)
TOTAL CASH ASSETS, CASH EQUIVALENTS & INVESTMENTS		114,772,139	124,117,719		100.00%
LESS: RIVERINA REGIONAL LIBRARY (RRL) CASH AT BANK		3,515,255	3,354,820
TOTAL WWCC CASH ASSETS, CASH EQUIVALENTS & INVESTMENTS		111,256,884	120,762,899

 

Council’s portfolio is predominantly dominated by Floating Rate Notes (FRN’s) equating to approximately 43% across a broad range of counterparties. Cash equates to 16% of Council’s portfolio with Term Deposits around 40% and growth funds around 1% of the portfolio.

 

 

 

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

 

 

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

 

 

Investment Portfolio Balance

 

Council’s investment portfolio balance has increased from the previous month’s balance, up from $111.2M to $120.8M. This is reflective of the third quarter rates instalment being due at the end of February.

 

 

MONTHLY INVESTMENT MOVEMENTS

 

Redemptions/Sales – Council redeemed/sold the following investment securities during February 2018:

 

 

New Investments – Council purchased the following investment securities during February 2018:

 

 

Rollovers – Council did not roll over any investment securities during January 2018.

MONTHLY PERFORMANCE

 

Interest/growth/capital gains for the month totalled $214,589, which compares unfavourably with the budget for the period of $235,087, underperforming budget for February by $20,498.

 

Included in this report is a positive budget variation to increase the investment income budget by $760K up to $3.6M.

 

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 was originally anticipated that over the remainder of the 2017/18 financial year the portfolio balance will reduce in line with the completion of major projects. Further analysis of the capital works program and revised timing on some of the projects is currently underway and is planned to be reported to Council separately.

 

 

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* (+1.75%pa), Council’s investment portfolio in total returned 2.52% for February. Short-term deposits returned 2.66%. 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

 

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.

 

Community Leadership and Collaboration

Objective: We have strong leadership

Outcome: We are accountable and transparent

 

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

 

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.

 

 

1⇩.	Section 356 Donation Request - Beechworth to Sydney Harbour Bridge Walk Group
2⇩.	Section 356 Donation Request - East Wagga Kooringal Football and Netball Club Inc.