Agenda of Ordinary Meeting of Council

Report submitted to the Ordinary Meeting of Council on Monday 25 June 2018. RP-1

Reports from Staff

RP-1 Financial Performance Report as at 31 May 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 31 May 2018.

Recommendation

That Council:

a approve the proposed 2017/18 budget variations for the month ended 31 May 2018 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 note details of the external investments as at 31 May 2018 in accordance with section 625 of the Local Government Act 1993

Report

Wagga Wagga City Council (Council) forecasts a balanced budget position as at 31 May 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 May, when compared to budget. This is a result of a negative movement in the value of Council’s Floating Rate Note portfolio during the month.

Key Performance Indicators

OPERATING INCOME

Total operating income is 91% of approved budget, which is tracking to budget for the end of May (this percentage excludes capital grants and contributions). An adjustment has been made to reflect the levy of rates that occurred at the start of the financial year. Excluding this adjustment, operating income received is 96%.

OPERATING EXPENSES

Total operating expenditure is 87% of approved budget and is tracking close to budget for the full financial year.

CAPITAL INCOME

Total capital income is 56% 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 77% of approved budget.

WAGGA WAGGA CITY COUNCIL STATEMENT OF FINANCIAL PERFORMANCE 1 JULY 2017 TO 31 MAY 2018
CONSOLIDATED STATEMENT
	ORIGINAL BUDGET 2017/18	BUDGET ADJ 2017/18	APPROVED BUDGET 2017/18	YTD ACTUAL EXCL COMMT'S 2017/18	COMMT'S 2017/18	YTD ACTUAL + COMMT'S 2017/18	YTD % OF BUD
Revenue
Rates & Annual Charges	(63,090,002)	0	(63,090,002)	(58,122,459)	0	(58,122,459)	92%
User Charges & Fees	(25,947,798)	(24,531)	(25,972,329)	(22,934,713)	0	(22,934,713)	88%
Interest & Investment Revenue	(3,154,163)	(606,544)	(3,760,707)	(3,272,207)	0	(3,272,207)	87%
Other Revenues	(2,984,954)	83,065	(2,901,889)	(2,497,903)	0	(2,497,903)	86%
Operating Grants & Contributions	(13,910,429)	3,108,305	(10,802,124)	(10,407,520)	0	(10,407,520)	96%
Capital Grants & Contributions	(13,704,984)	(11,322,186)	(25,027,171)	(14,839,477)	0	(14,839,477)	59%
Total Revenue	(122,792,330)	(8,761,891)	(131,554,222)	(112,074,280)	0	(112,074,280)	85%

Expenses
Employee Benefits & On-Costs	42,458,491	175,003	42,633,494	36,376,203	27,058	36,403,260	85%
Borrowing Costs	3,591,092	0	3,591,092	2,666,816	0	2,666,816	74%
Materials & Contracts	29,833,841	5,279,469	35,113,310	26,375,055	3,290,079	29,665,134	84%
Depreciation & Amortisation	34,477,729	0	34,477,729	31,604,584	0	31,604,584	92%
Other Expenses	9,453,285	177,801	9,631,086	8,720,083	110,485	8,830,568	92%
Total Expenses	119,814,437	5,632,274	125,446,711	105,742,741	3,427,622	109,170,363	87%

Net Operating (Profit)/Loss	(2,977,893)	(3,129,618)	(6,107,511)	(6,331,539)	3,427,622	(2,903,917)

Net Operating (Profit)/Loss before Capital Grants & Contributions	10,727,091	8,192,569	18,919,660	8,507,939	3,427,622	11,935,561

Capital / Reserve Movements
Capital Exp - Renewals	25,035,121	11,453,300	36,488,422	18,005,700	5,851,796	23,857,496	65%
Capital Exp - New Projects	16,898,302	7,759,144	24,657,446	14,871,252	8,416,442	23,287,694	94%
Capital Exp - Project Concepts	11,400,337	(10,776,866)	623,471	144,250	95,657	239,907	38%
Loan Repayments	2,474,343	0	2,474,343	2,267,238	0	2,267,238	92%
New Loan Borrowings	(7,215,980)	(652,930)	(7,868,910)	0	0	0	0%
Sale of Assets	(4,678,401)	(280,351)	(4,958,752)	(2,012,774)	0	(2,012,774)	41%
Net Movements Reserves	(6,458,101)	(4,372,680)	(10,830,781)	0	0	0	0%
Total Cap/Res Movements	37,455,621	3,129,618	40,585,239	33,275,666	14,363,895	47,639,562

	ORIGINAL BUDGET 2017/18	BUDGET ADJ 2017/18	APPROVED BUDGET 2017/18	YTD ACTUAL EXCL COMMT'S 2017/18	COMMT'S 2017/18	YTD ACTUAL + COMMT'S 2017/18	YTD % OF BUD
Net Result after Depreciation	34,477,728	0	34,477,728	26,944,128	17,791,517	44,735,645

Add back Depreciation Expense	34,477,729	0	34,477,729	31,604,584	0	31,604,584	92%

Cash Budget (Surplus)/Deficit	0	0	0	(4,660,457)	17,791,517	13,131,060

Revised Budget Result - Surplus/(Deficit)

$’000s

Original 2017/18 Budget Result as adopted by Council

Total Budget Variations approved to date

Budget variations for May 2018

Proposed revised budget result for 31 May 2018

The proposed Budget Variations to 31 May 2018 are listed below:

*Budget Variation*		*Amount*			*Funding Source*			*Net Impact* *Fav/ (Unfav)*
*1 – Community Leadership and Collaboration*
Section 94 Additional Income			($1,500K)		Section 94 Reserve $1,500K			Nil
Strong subdivision activity and funds being received earlier than anticipated for growth in the suburbs of Lake Albert, Estella, Boorooma, Gobbagombalin and Gumly Gumly has resulted in additional income for Section 94 Contributions for 2017/18. These funds are to be transferred to the Section 94 Developer Contribution Reserve for future capital projects.								Nil
Stormwater Development Servicing Plan (DSP) & Sewer Development Servicing Plan (DSP)				$200K			Section 64 Reserve ($100K) Stormwater Section 64 Reserve ($100K) Sewer	Nil
Funds are required for the 2018/19 financial year for the revision and updating of Council’s Stormwater Development Servicing Plan 2007 and Sewer Development Servicing Plan 2013 for the future growth and needs of the city. These strategic documents are a priority for the following reasons: · The City of Wagga Wagga Development Servicing Plan -Stormwater was last updated in 2007. The City of Wagga Wagga Development Servicing Plan No 1: Sewer Services was last updated in 2013. There has been significant subdivision development in recent years and substantial future subdivision development is forecast for future years. · plan for the future stormwater and sewer infrastructure requirements of the city due to its future growth · to inform future budgets and section 64 reviews. It is proposed to fund the project in 2018/19 from the Section 64 Reserve Stormwater Delivery Service Plan and Sewer Reserve. Completion Date: 2018/19
Lewis Drive and Yabtree Street Pedestrian Safety				$25K			RMS Grant ($25K)	Nil
Urgent works were required by RMS to improve pedestrian safety on Lewis Drive and Yabtree Street near the hospital. The works included the installation of speed cushions and additional signage that are to be funded by RMS contributions. Completion Date: 31 May 2018
*4 – Community Place and Identity*
Cultural Strategy			$100K			Internal Loans Reserve ($100K)		Nil
Funds are required for the revision and updating of Council’s Cultural Plan for the future growth and needs of the city. This strategic document is a priority for the following reasons: · identified priority in ROCS · the State Government Cultural Infrastructure Program fund is only available for another 3 years, so it’s essential to identify future projects · plan for the cultural requirements of the city due to its future growth · to inform future cultural budgets and section 94 reviews. The Cultural Plan is identified in the new contributions plan but it is proposed to fund the project in 2018/19 from an internal loan until the plan is adopted. Completion Date: 2018/19
*5 – The Environment*
Emergency Hot Water Upgrade Connolly Park			$11K			Internal Loans Reserve ($11K)		Nil
Emergency funding was required at Connolly Park for the upgrade of hot water units with the replacement of a new instantaneous system, as the existing units were no longer working. It is proposed to forward fund this project from the annual programmed building maintenance budget in 2018/19. Completion Date: 31 May 2018
	*SURPLUS/(DEFICIT)*		$0					Nil

Current Restrictions

RESERVES SUMMARY
31 MAY 2018
	CLOSING BALANCE 2016/17	ADOPTED RESERVE TRANSFERS 2017/18	BUDGET VARIATIONS APPROVED UP TO COUNCIL MEETING 28.05.18	PROPOSED CHANGES for Council Resolution	REVISED BALANCE

Externally Restricted
Developer Contributions	(21,947,807)	3,374,249	(3,287,096)	(1,500,000)	(23,360,654)
Sewer Fund	(24,045,646)	1,229,992	(3,389,245)		(26,204,899)
Solid Waste	(15,824,723)	4,878,008	(5,830,838)		(16,777,553)
Specific Purpose Unexpended Grants/Contributions	(4,956,776)	0	4,956,776		0
SRV Levee	(1,167,316)	0	(640,350)		(1,807,666)
Stormwater Levy	(2,940,246)	(587,206)	451,268		(3,076,184)
Total Externally Restricted	(70,882,514)	8,895,043	(7,739,486)	(1,500,000)	(71,226,957)

Internally Restricted
Airport	(371,610)	(386,660)	242,472		(515,798)
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	18,889		(873,094)
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)	65,800		(89,650)
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	(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)	810,178		(4,489,026)
Generic Projects Saving	(1,040,610)	20,000	106,499		(914,111)
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)	620,468		(905,986)
Lake Albert Improvements	(53,867)	(50,000)	56,078		(47,789)

RESERVES SUMMARY
31 MAY 2018
	CLOSING BALANCE 2016/17	ADOPTED RESERVE TRANSFERS 2017/18	BUDGET VARIATIONS APPROVED UP TO COUNCIL MEETING 28.05.18	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)	0		(204,147)
Oasis Plant	(1,115,347)	90,000	(114,230)		(1,139,577)
Parks & Recreation Projects	(79,648)	0	24,860		(54,788)
Pedestrian River Crossing	(198,031)	48,031	150,000		0
Plant Replacement	(5,893,831)	1,804,934	1,084,675		(3,004,223)
Playground Equipment Replacement	(59,181)	(105,679)	0		(164,860)
Project Carryovers	(1,276,882)	0	874,074		(402,808)
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	(65,000)		(550,442)
Traffic Committee	(50,000)	(50,000)	60,000		(40,000)
Workers Compensation	0	0	(40,000)		(40,000)
Total Internally Restricted	(35,686,205)	(3,511,177)	12,926,941	0	(26,270,441)

Total Restricted	(106,568,720)	5,383,866	5,187,455	(1,500,000)	(97,497,399)

Investment Summary as at 31 May 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 30/04/2018 $	Closing Balance Invested 31/05/2018 $	May EOM Current Yield %	May EOM % of Portfolio	Investment Date	Maturity Date	Term (mths)
*Short Term Deposits*
Banana Coast CU	NR	1,000,000	1,000,000	2.80%	0.79%	2/06/2017	1/06/2018	12
AMP	A	2,000,000	2,000,000	2.80%	1.58%	2/06/2017	1/06/2018	12
AMP	A	2,000,000	2,000,000	2.60%	1.58%	2/08/2017	2/08/2018	12
NAB	AA-	2,000,000	2,000,000	2.60%	1.58%	8/09/2017	7/09/2018	12
AMP	A	1,000,000	1,000,000	2.80%	0.79%	8/09/2017	5/06/2018	9
NAB	AA-	2,000,000	2,000,000	2.62%	1.58%	28/09/2017	28/09/2018	12
Auswide	BBB-	2,000,000	2,000,000	2.67%	1.58%	5/10/2017	5/10/2018	12
Auswide	BBB-	1,000,000	1,000,000	2.67%	0.79%	16/10/2017	16/10/2018	12
Auswide	BBB-	2,000,000	2,000,000	2.70%	1.58%	5/12/2017	5/12/2018	12
Auswide	BBB-	1,000,000	1,000,000	2.67%	0.79%	15/12/2017	16/07/2018	7
NAB	AA-	2,000,000	0	0.00%	0.00%	28/02/2018	28/05/2018	3
Police Credit Union	NR	2,000,000	2,000,000	2.70%	1.58%	28/02/2018	29/10/2018	8
AMP	A	0	2,000,000	2.95%	1.58%	17/05/2018	13/11/2018	6
AMP	A	0	1,000,000	2.95%	0.79%	17/05/2018	17/05/2019	12
Police Credit Union	NR	0	2,000,000	2.86%	1.58%	28/05/2018	28/05/2019	12
AMP	A	0	2,000,000	2.95%	1.58%	29/05/2018	24/01/2019	8
*Total Short Term Deposits*		20,000,000	25,000,000	2.75%	19.79%
*At Call Accounts*
NAB	AA-	978,100	2,451,509	1.50%	1.94%	N/A	N/A	N/A
NAB	AA-	13,281,887	14,405,319	2.19%	11.40%	N/A	N/A	N/A
AMP	A	184,789	185,116	2.30%	0.15%	N/A	N/A	N/A
Beyond Bank	BBB+	149,740	148	1.00%	0.00%	N/A	N/A	N/A
CBA	AA-	65,154	72,123	1.35%	0.06%	N/A	N/A	N/A
*Total At Call Accounts*		14,659,670	17,114,215	2.09%	13.55%
*Medium Term Deposits*
RaboBank	A+	1,000,000	1,000,000	3.16%	0.79%	5/06/2017	6/06/2022	60
ING Bank	A	3,000,000	3,000,000	2.75%	2.38%	24/08/2017	26/08/2019	24
ME Bank	BBB	2,000,000	2,000,000	4.28%	1.58%	2/09/2014	2/09/2019	60
Rabobank	A+	1,000,000	1,000,000	4.10%	0.79%	5/12/2014	5/12/2019	60
BOQ	BBB+	2,000,000	2,000,000	3.10%	1.58%	7/07/2017	7/07/2020	36
Newcastle Permanent	BBB	1,000,000	1,000,000	3.00%	0.79%	12/08/2016	12/08/2019	36
Rabobank	A+	1,000,000	1,000,000	3.20%	0.79%	25/08/2016	25/08/2021	60
Newcastle Permanent	BBB	1,000,000	1,000,000	3.00%	0.79%	31/08/2016	30/08/2019	36
Police Credit Union	NR	1,000,000	1,000,000	2.90%	0.79%	8/09/2016	10/09/2018	24
Newcastle Permanent	BBB	2,000,000	2,000,000	3.00%	1.58%	10/02/2017	11/02/2019	24
Westpac	AA-	3,000,000	3,000,000	3.10%	2.38%	10/03/2017	10/03/2022	60
ING Bank	A	1,000,000	1,000,000	2.92%	0.79%	16/10/2017	16/10/2019	24
ING Bank	A	2,000,000	2,000,000	2.92%	1.58%	6/11/2017	6/11/2019	24
BOQ	BBB+	2,000,000	2,000,000	3.35%	1.58%	3/01/2018	4/01/2022	48
ING Bank	A	1,000,000	1,000,000	2.80%	0.79%	5/01/2018	6/01/2020	24
Australian Military Bank	NR	0	1,000,000	2.95%	0.79%	29/05/2018	29/05/2020	24
Institution	Rating	Closing Balance Invested 30/04/2018 $	Closing Balance Invested 31/05/2018 $	May EOM Current Yield %	May EOM % of Portfolio	Investment Date	Maturity Date	Term (mths)
*Total Medium Term Deposits*		24,000,000	25,000,000	3.16%	19.79%
*Floating Rate Notes - Senior Debt*
BOQ	BBB+	2,018,000	2,020,600	BBSW + 110	1.60%	5/08/2014	24/06/2019	58
BOQ	BBB+	1,003,987	1,006,175	BBSW + 107	0.80%	6/11/2014	6/11/2019	60
BOQ	BBB+	1,003,987	1,006,175	BBSW + 107	0.80%	10/11/2014	6/11/2019	60
Macquarie Bank	A	2,026,954	0	0.00%	0.00%	3/03/2015	3/03/2020	60
Westpac	AA-	1,007,747	0	0.00%	0.00%	28/07/2015	28/07/2020	60
Bendigo-Adelaide	BBB+	1,011,767	1,006,884	BBSW + 110	0.80%	18/08/2015	18/08/2020	60
Bendigo-Adelaide	BBB+	1,011,767	1,006,884	BBSW + 110	0.80%	28/09/2015	18/08/2020	59
Westpac	AA-	2,015,494	0	0.00%	0.00%	30/09/2015	28/07/2020	58
Suncorp-Metway	A+	1,014,887	1,016,693	BBSW + 125	0.80%	20/10/2015	20/10/2020	60
Westpac	AA-	4,047,828	4,056,212	BBSW + 108	3.21%	28/10/2015	28/10/2020	60
CBA	AA-	1,014,287	1,016,383	BBSW + 115	0.80%	18/01/2016	18/01/2021	60
Rabobank	A+	2,054,252	2,055,000	BBSW + 150	1.63%	4/03/2016	4/03/2021	60
Newcastle Permanent	BBB	1,009,917	1,012,514	BBSW + 160	0.80%	22/03/2016	22/03/2019	36
CUA	BBB	2,018,214	2,023,388	BBSW + 160	1.60%	1/04/2016	1/04/2019	36
ANZ	AA-	1,016,886	1,018,932	BBSW + 118	0.81%	7/04/2016	7/04/2021	60
Suncorp-Metway	A+	1,019,746	1,021,622	BBSW + 138	0.81%	21/04/2016	12/04/2021	60
AMP	A	1,021,356	1,012,744	BBSW + 135	0.80%	24/05/2016	24/05/2021	60
Westpac	AA-	1,018,566	1,020,100	BBSW + 117	0.81%	3/06/2016	3/06/2021	60
CBA	AA-	1,017,146	1,019,072	BBSW + 121	0.81%	12/07/2016	12/07/2021	60
ANZ	AA-	2,038,692	2,028,106	BBSW + 113	1.61%	16/08/2016	16/08/2021	60
BOQ	BBB+	1,510,931	1,513,926	BBSW + 117	1.20%	26/10/2016	26/10/2020	48
NAB	AA-	1,011,617	1,012,873	BBSW + 105	0.80%	21/10/2016	21/10/2021	60
Teachers Mutual	BBB	1,503,162	1,507,283	BBSW + 140	1.19%	28/10/2016	28/10/2019	36
Bendigo-Adelaide	BBB+	1,010,837	1,005,975	BBSW + 110	0.80%	21/11/2016	21/02/2020	39
Westpac	AA-	1,011,997	1,013,193	BBSW + 111	0.80%	7/02/2017	7/02/2022	60
ANZ	AA-	1,013,297	1,006,884	BBSW + 100	0.80%	7/03/2017	7/03/2022	60
CUA	BBB	756,500	758,283	BBSW + 130	0.60%	20/03/2017	20/03/2020	36
Heritage Bank	BBB+	602,129	603,525	BBSW + 130	0.48%	4/05/2017	4/05/2020	36
Teachers Mutual	BBB	1,004,417	1,007,034	BBSW + 142	0.80%	29/06/2017	29/06/2020	36
NAB	AA-	3,015,801	3,021,162	BBSW + 90	2.39%	5/07/2017	5/07/2022	60
Suncorp-Metway	A+	1,009,747	1,003,905	BBSW + 97	0.79%	16/08/2017	16/08/2022	60
Westpac	AA-	1,998,536	2,000,912	BBSW + 81	1.58%	30/10/2017	27/10/2022	60
ME Bank	BBB	1,500,312	1,503,443	BBSW + 125	1.19%	9/11/2017	9/11/2020	36
NAB	AA-	2,006,116	1,995,012	BBSW + 80	1.58%	10/11/2017	10/02/2023	63
ANZ	AA-	1,496,067	1,498,044	BBSW + 77	1.19%	18/01/2018	18/01/2023	60
Bendigo-Adelaide	BBB+	498,054	499,068	BBSW + 105	0.40%	25/01/2018	25/01/2023	60
Newcastle Permanent	BBB	1,495,017	1,496,319	BBSW + 140	1.18%	6/02/2018	6/02/2023	60
Westpac	AA-	2,004,416	1,992,792	BBSW + 83	1.58%	6/03/2018	6/03/2023	60
UBS	A+	2,007,176	1,996,032	BBSW + 90	1.58%	8/03/2018	8/03/2023	60
Heritage Bank	BBB+	1,405,163	1,407,861	BBSW + 123	1.11%	29/03/2018	29/03/2021	36
ME Bank	BBB	1,602,605	1,606,728	BBSW + 127	1.27%	17/04/2018	16/04/2021	36
ANZ	AA-	0	2,002,730	BBSW + 93	1.59%	9/05/2018	9/05/2023	60
NAB	AA-	0	2,001,330	BBSW + 90	1.58%	16/05/2018	16/05/2023	60
*Total Floating Rate Notes - Senior Debt*		58,855,377	57,801,797		42.59%
*Managed Funds*
Institution	Rating	Closing Balance Invested 30/04/2018 $	Closing Balance Invested 31/05/2018 $	May EOM Current Yield %	May EOM % of Portfolio	Investment Date	Maturity Date	Term (mths)
NSW TCorp	NR	1,394,045	1,396,766	0.20%	1.11%	17/03/2014	1/05/2023	109
*Total Managed Funds*		1,394,045	1,396,766	0.20%	1.11%
TOTAL CASH ASSETS, CASH EQUIVALENTS & INVESTMENTS		118,909,091	126,312,778		100.00%
LESS: RIVERINA REGIONAL LIBRARY (RRL) CASH AT BANK		3,140,356	2,962,777
TOTAL WWCC CASH ASSETS, CASH EQUIVALENTS & INVESTMENTS		115,768,736	123,350,001

Council’s investment portfolio is dominated by Floating Rate Notes (FRNs) equating to approximately 46% across a broad range of counterparties. Cash equates to 14% of Council’s portfolio with Term Deposits around 39% 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 $115.8M to $123.4M, which is reflective of the final rates instalment for 2017/18 being due.

MONTHLY INVESTMENT MOVEMENTS

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

Institution and Type	Amount	Investment Term	Interest Rate	Comments
Macquarie Bank Floating Rate Note	$2M	5 years	BBSW + 110bps	This floating rate note was sold prior to maturity and funds were reinvested in the new 5 year ANZ Bank FRN (see below). Council recognised a capital gain of $16,660.
Westpac Bank Floating Rate Note	$1M	5 years	BBSW + 90bps	This floating rate note was sold prior to maturity and funds were reinvested in a 12 month AMP term deposit (see below). Council recognised a capital gain of $7,210.
Westpac Bank Floating Rate Note	$2M	5 years	BBSW + 90bps	This floating rate note was sold prior to maturity and funds were reinvested in the new 5 year NAB FRN (see below). Council recognised a capital gain of $18,980.
NAB Term Deposit	$2M	3 months	2.47%	This term deposit was redeemed on maturity due to poor reinvestment rates. These funds were reinvested in a 12 month Police Credit Union term deposit (see below).

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

Institution and Type	Amount	Investment Term	Interest Rate	Comments
ANZ Bank Floating Rate Note	$2M	5 years	BBSW + 93bps	Council’s independent Financial Advisor advised this Floating Rate Note represented good value.
NAB Floating Rate Note	$2M	5 years	BBSW + 90bps	Council’s independent Financial Advisor advised this Floating Rate Note represented fair value.
AMP Term Deposit	$2M	6 months	2.95%	The AMP rate of 2.95% compared favourably to the rest of the market for this investment term. This term was chosen to fill a maturity gap within Council’s investment portfolio.
AMP Term Deposit	$1M	12 months	2.95%	The AMP rate of 2.95% compared favourably to the rest of the market for this investment term. This term was chosen to fill a maturity gap within Council’s investment portfolio.
AMP Term Deposit	$2M	8 months	2.95%	The AMP rate of 2.95% compared favourably to the rest of the market for this investment term. This term was chosen to fill a maturity gap within Council’s investment portfolio.
Police Credit Union (PCU)	$2M	12 months	2.86%	The PCU rate of 2.86% compared favourably to the rest of the market for this investment term. This term was chosen to fill a maturity gap within Council’s investment portfolio.
Australian Military Bank (AMB)	$1M	2 years	2.95%	The AMB rate of 2.95% compared favourably to the rest of the market for this investment term. This term was chosen to fill a maturity gap within Council’s investment portfolio.

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

MONTHLY PERFORMANCE

Interest/growth/capital gains for the month totalled $252,270, which compares unfavourably with the budget for the period of $298,465, underperforming budget for the month of May by $46,195. This is due to a negative movement for Councils Floating Rate Note portfolio during May.

It should be noted that a majority of Councils FRNs continue to trade at a premium. The capital market value of these 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 important to note Council’s investment portfolio balance has consistently been over $100M, 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 would reduce in line with the completion of major projects. Further analysis of the capital works program and revised timing has been completed and has resulted in a number of these projects being scheduled for a future financial year. This will result in Councils investment portfolio continuing to maintain a higher balance until these projects commence.

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* (+1.78%pa), Council’s investment portfolio in total returned 3.12% for May. Short-term deposits returned 2.75%. 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 February 2018.

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.

Charge Type	Number	Total Amount
Development related fees	8	$1,769.00
Inspection Charges	22	$7,821.03
Trade Waste Charges	14	$1,234.05
Sewer Non-Domestic Charges	5	$2,679.61
Airport Parking Fees	1	$60.00
Cemetery Fee	1	$100.00
Booking Fee	1	$90.00
Clean Up Notice	1	$506.00
Stores issue	1	$70.00
Swimming Fees	1	$224.00
Total Amount to be Written Off to Provisions - Accounts less than $1,000	55	$14,553.69

Report submitted to the Ordinary Meeting of Council on Monday 25 June 2018. RP-3

RP-3 NSW Department of Planning & Environment - Low Cost Loans Initiative

Author: Carolyn Rodney

Director: Natalie Te Pohe

Analysis:

NSW Planning & Environment have announced a new Low Cost Loans Initiative that provides a 50% interest subsidy on projects that meet the criteria under their program.

Council officers are requesting Council endorsement to make an application for the projects listed in this report, totalling $24.27 million and to vote in the potential projects listed in the report.

Recommendation

That Council:

a endorse the General Manager or their delegate to submit an application to the Low Cost Loans Initiative (LCLI) program, for the projects listed in this report

b approve the inclusion of the Potential Projects outlined in this report to be included in Council’s Delivery Program

c note that a subsequent report will be provided to Council once a determination has been made by NSW Planning & Environment which will outline any budget variations required

Report

NSW Planning & Environment announced the $500 million Low Cost Loans Initiative (LCLI) in late April 2018. As mentioned in the attached guidelines:

The key aim of the LCLI is to enable new housing supply. The essential elements are:

· the NSW Government will refund 50% of the costs of council’s interest payments on loans for eligible infrastructure

· the council is responsible for repaying the loan which is funded by TCorp, or another financial institution or the council’s choice, on their standard terms and prudential requirements

Loans taken out must be for a minimum of $1 million and have a fixed interest rate.

The duration of loans subsidised under the LCLI must be no longer than 10 years. Councils showing that planned infrastructure will be substantially completed by 30 June 2021 will be preferred for LCLI support.

During the 2018/19 Budget process, numerous infrastructure works were identified that would effectively exhaust the Contributions Reserve and the Fit for the Future Reserve in particular, within a relatively short timeframe. While additional contributions will be received and assist in supplementing the cash reserves over this time, there is the risk of depleting these funds at the expense of additional infrastructure requirements. In order to assist in the Council’s cashflow for the large infrastructure program that is associated with growth across the city, it was determined that the LCLI would be a beneficial source of income that could then be repaid over 10 years, resulting in cash being available for future growth and infrastructure requirements.

Council officers have had numerous conversations with the NSW Planning & Environment team in relation to the application process, the timing of the drawdown of funds, and in particular, whether or not the interest that would be charged on the borrowings could be applied to the Contributions Reserve without a separate line item being incorporated in the Contributions Plan. If this was not allowable, there would be a GPR impact which Council could not afford given the balanced budget position for 2018/19.

In trying to determine whether the application of interest to the Contributions Reserve was allowable, contact was also made with other Councils, however officers from NSW Planning & Environment clarified this matter on 6 June allowing officers to progress. Confirmation has also been received that while the application would need to be for the total funding required, the funds can be drawn down based on the project completion timeframes, therefore ensuring that interest is not paid until the funds are required.

If approved by the State, the 50% interest subsidy will be returned to the original funding source incurring the debt repayments that is outlined in Table 4 below.

Council officers have reviewed the current draft 2018/28 Long Term Financial Plan Capital works program due for adoption at this Council meeting. Officers have determined that the projects identified in Table 1 meet the eligibility requirements and criteria of the program, and will submit the application based on a precinct approach associated with the Northern, Lloyd and City Wide Growth Precincts. This approach is supported by Direction 22 of the Riverina Murray Regional Plan that refers to significant housing release areas requiring the support of infrastructure delivery in Estella, Lloyd and Boorooma in Wagga Wagga.

The approach is also supported through the Spatial Plan 2013 (pg. 45) which highlights the following housing and population numbers that are provided for in the urban release areas:

· 3,208 potential lots in Northern Urban Release Area

· 1,461 potential lots in Lloyd Urban Release Area

· 8,020 people in Northern Urban Release Area – based on average of 2.5 occupancy rate per potential lot

· 3,652 people in Lloyd Urban Release Area – based on average of 2.5 occupancy rate per potential lot

The application itself will further demonstrate the growth of Wagga Wagga in utilising the Australian Bureau of Statistics recent population data that shows Wagga Wagga has a strong growth rate of 1.2 per cent, and the city’s northern suburbs have the second fastest growth rate in regional NSW at 5.1 per cent.

Table 1: Proposed projects included in Council’s LCLI application

Project – linked to enabling new housing supply	Total Project Budget	Current LTFP Funding Source comments	Current year(s) for completion, as listed in current 2018/28 LTFP
NORTHERN GROWTH
Estella - Neighbourhood Open Space Works - Walking Path	$31,816	Section 94	2018/19
Sewer - Pump Station - SPS 08 Boorooma - Increase Pump Capacity	$76,689	Sewer Reserve	2018/19
Northern Sporting Precinct - Sports grounds and play equipment*	$6,579,000	S94 Plan $5,979,000 (New Plan still to be adopted) + GPR $199,643 + S94 (Old Plan) $121,838 + Estella Community Centre Reserve $178,519 + Borrowings $100,000	2018/19 - $1,800,000 2019/20 - $3,200,000 2020/21 - $1,579,000
Old Narrandera Road - Second Carriageway for 600m*	$827,428	2018/19 - S94 $90,000 + 2020/21 - S94 $637,428 + 2021/22 - S94A $100,000	2018/19 – Design ($90,000) 2020/21 ($637,428) + 2021/22 ($100,000) – Construct
Old Narrandera Road/Olympic Highway Roundabout*	$667,886	2018/19 - S94 $90,000 + 2020/21 - S94A $100,000 + S94 $477,886	2018/19 – Design ($90,000) 2020/21 ($577,886) - Construct
Pine Gully Road Roundabout*	$1,500,000	Section 94	2019/20 – Design ($200,000) 2020/21 ($1,300,000) - Construct
Pine Gully Road - Bike Track*	$126,510	Section 94	2018/19 – Design ($30,000) 2020/21 ($96,510) - Construct
Pine Gully Road/Old Narrandera Road - Intersection Upgrade*	$1,057,439	Section 94	2018/19 – Design ($180,000) 2019/20 – Construct ($877,439)
Harris Road/Pine Gully Road - Dual Lane Roundabout*	$1,201,000	Section 94	2018/19
Farrer Road Improvements*	$6,120,000	Fit for the Future Reserve $4,392,066 + S94 $1,620,000 + Infrastructure Reserve $107,934	2018/19
TOTAL NORTHERN GROWTH	$18,187,768
LLOYD GROWTH
Sewer - Pump Station - SPS23 Ashmont - New Assets - New pump station and rising main	$2,093,413	Sewer Reserve	2018/19 ($1,270,543) + 2019/20 ($822,870)
Red Hill Road and Hudson Drive – Intersection improvements*	$101,164	Section 94	2018/19 – Design ($10,000) 2019/20 – Construct ($91,164)
TOTAL LLOYD GROWTH	$2,194,577
CITY WIDE GROWTH
Exhibition Centre - Kooringal Road Exit	$1,775,157	Loan Borrowings	2018/19 – Design ($177,000) 2019/20 – Construct ($1,598,157)
Sewer - Pump Station - SPS39 Copland Street - New Assets - New pump station	$414,910	Sewer Reserve	2022/23
Sewer Treatment Works - Forest Hill Plant - New Assets	$1,193,677	Sewer Reserve	2018/19
TOTAL CITY WIDE GROWTH	$3,383,744
TOTAL PROJECTS	$23,766,089

* Currently included in Council’s Potential Projects list. Funding sources have been restricted and require Council resolution to be voted into the delivery program.

The loan repayments will be based on the total current identified funding sources for the projects as shown in Table 2 below. Also included in the table is the estimated interest subsidy.

The total estimated interest on a $23,766,089 loan (assuming a 4% interest rate over a 10 year term) is $5,535,346. Under the LCLI, 50% of the total interest would be paid to Council as a subsidy - $2,767,673.

Table 2: Loan Repayments for each Funding Source

Funding Source	Amount $	Total Loan Interest^ $	Interest Subsidy^ $	Loan Repayments (Principal + Interest) net of interest subsidy^ $
Section 94	13,034,081	3,035,760	1,517,880	14,551,961
Section 94A	200,000	46,582	23,291	223,291
Loan Borrowings	1,875,157	436,742	218,371	2,093,528
Sewer Reserve	3,778,689	880,092	440,046	4,218,735
Fit For the Future Reserve	4,392,066	1,022,954	511,477	4,903,543
Infrastructure Reserve	107,934	25,138	12,569	120,504
General Purpose Revenue	199,643	46,498	23,249	222,892
Estella Community Centre Reserve	178,519	41,580	20,790	199,309
	$ 23,766,089	$5,535,346	$2,767,673	$26,533,763

If Council were to include all of the above 15 projects in the LCLI application, and if all were successful for inclusion under the initiative, Council would take out a loan to fund the works, with loan drawdowns as per the revised estimated project timing shown below:

Table 3: Summary of Loan Drawdown and Debt Servicing Costs

End of Financial Year loan drawdown	Proposed Loan Drawdown amount	Annual Debt Servicing Costs^
2018/19	12,270,725	1,512,869
2019/20	6,789,630	2,349,969
2020/21 (date at which projects are to be substantially completed)	4,190,824	2,866,660
2021/22	514,910*	2,930,144
	$ 23,766,089	$ 2,930,144

^ Proposed Loan Particulars - 10 year loan term, 4% estimated loan interest rate

* It is anticipated that if the LCLI application was successful, the Sewer Pump Station – SP39 Copland Street and the remaining allocation for the Old Narrandera Road – Second Carriageway for 600m would be able to be brought forward and be completed by June 2021.

Table 4: Detailed Drawdown

Table 5: Indicative Interest Earnings

As demonstrated in the table above, the interest that may be generated through investing the cash available now, in comparison to the debt servicing costs and subsidy to be returned, will potentially generate $4.7M for Council Reserves over the 10 year period. While this may fluctuate given the interest earnings that are achieved, any additional income will assist in the infrastructure delivery program.

It should be noted that there will be some impact on Council’s financial ratios, however this will be further outlined to Council if successful in its application.

Further details on the LCLI can be found at:

https://www.planning.nsw.gov.au/~/media/Files/DPE/Other/LCLI/low-cost-loans-initiative-faqs-2018-04-17.ashx

Applications are required to be submit to NSW Planning & Environment by 1 July, with the estimated timing of the announcement of projects successful for funding under the LCLI program being September 2018. A further report will be provided to Council if Council is successful with its application.

Financial Implications

Some of the projects outlined in Table 1 are currently included in Council’s Potential Projects list for the 2018/19 Long Term Financial Plan. To enable staff to continue working on the initial stages of the projects, including required work up to when Council receives notification on its application, it is proposed to vote these projects into Council’s 2018/19 Delivery Program.

Policy and Legislation

N/A

Link to Strategic Plan

Growing Economy

Objective: There is growing investment in our Community

Outcome: There is government investment to develop our community

Risk Management Issues for Council

The delivery model proposed allows for long-term cashflow management of Council’s Reserves, in particular the Contributions Reserve and Fit for the Future Reserve. It allows for infrastructure to be delivered now, paid over a longer-timeframe and cash to be available for future infrastructure requirements. If this model is not endorsed, the infrastructure delivery timeframes may be delayed in future years until there is sufficient cash available.

Internal / External Consultation

Officers have consulted with the NSW Planning & Environment officers in relation to the LCLI application process and have sought clarification on the guidelines.

The Finance, Commercial Operations, City Strategy and Executive teams have also been engaged as part of this process to ensure that the projects identified in the draft LTFP suggested for loan borrowings, can be delivered by the required timeframe of June 2021.

Attachments

1 ⇩.

Low Cost Loans Initiative Guidelines

Report submitted to the Ordinary Meeting of Council on Monday 25 June 2018. RP-4

RP-4 Integrated Planning and Reporting - Adoption of Documents

Author: Serena Wallace

Director: Natalie Te Pohe

Analysis:

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

Recommendation

That Council, having considered all submissions received relating to the exhibited documents:

a adopt the Combined Delivery Program and Operational Plan 2018/2019

b adopt the Fees and Charges for the financial year 2018/2019

c adopt the Long Term Financial Plan 2018/2028

d sets the interest on overdue rates and charges for 2018/19, in accordance with Section 566(3) of the Local Government Act 1993, at 7.50% per annum, calculated on a daily simple interest basis (set in accordance with the limit advised by the NSW Office of Local Government)

e makes and levy the following Rates and Annual Charges for 2018/19 under the relevant sections of the Local Government Act 1993:

i Residential – City and Suburbs rate of 0.80182 cents in the dollar in terms of Sections 516 and 529 of the Local Government Act 1993, calculated on the land value in respect of all rateable lands situated in the centres of population defined by Council Resolution 12/176 as the City of Wagga Wagga and the Village of Forest Hill, excluding Business - City and Suburbs land, rated in accordance with the provisions of Section 518 of the Local Government Act 1993, Residential (Other) land as defined, and also Farmland, rated in accordance with the provisions of Section 515 of the Local Government Act, within such centres of population

A minimum rate of $680.00 for each parcel of land as prescribed under Section 548 of the Local Government Act 1993 shall apply to this rate

ii Residential – Other rate of 0.60377 cents in the dollar calculated on the land value in respect of all rateable land within the Council’s area, which, in the Council’s opinion, is land which:-

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

(b) is either:

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

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

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

A minimum rate of $305.00 for each parcel of land as prescribed under Section 548 of the Local Government Act 1993 shall apply to this rate.

iii Residential – Villages rate of 0.53656 cents in the dollar in terms of Sections 516 and 529 of the Local Government Act 1993, calculated on the land value of all rateable land situated in the centres of population defined by Council Resolution 12/176 as the villages of San Isidore, Gumly Gumly, Tarcutta, Humula, Uranquinty, Mangoplah, Oura, Currawarna, Ladysmith, Galore, Collingullie and North Wagga excluding Business - Villages and Rural land, rated in accordance with the provisions of Section 518 of the Local Government Act 1993, Residential (Other) land as defined, and also Farmland, rated in accordance with the provisions of Section 515 of the Local Government Act, within such centres of population

A minimum rate of $256.00 for each parcel of land as prescribed under section 548 of the Local Government Act 1993 shall apply to this rate.

iv Business - City and Suburbs rate of 1.50680 cents in the dollar calculated on the land value of all rateable non-residential land, which cannot be classified as residential, or farmland land in the centres of population defined by Council Resolution 12/176 as the City of Wagga Wagga and the Village of Forest Hill, in terms of Sections 518 and 529 of the Local Government Act 1993

A minimum rate of $652.00 for each parcel of land as prescribed under Section 548 of the Local Government Act 1993 shall apply to this rate.

v Business - Villages and Rural rate of 0.67589 cents in the dollar calculated on the land value of all rateable land in the Council’s area, in terms of Sections 518 and 529 of the Local Government Act 1993, defined by Council Resolution 12/176, excluding lands defined as Business - City and Suburbs, Residential, and Farmland

A minimum rate of $109.00 for each parcel of land as prescribed under Section 548 of the Local Government Act 1993 shall apply to this rate.

vi Farmland rate of 0.36674 cents in the dollar, calculated on the land value of all rateable land, which, in Council’s opinion, qualifies as farmland as defined in Section 515 of the Local Government Act 1993

A minimum rate of $295.00 for each parcel of land as prescribed under Section 548 of the Local Government Act 1993 shall apply to this rate.

Special Rate - Levee Upgrade

vii Residential - City and Suburbs Special Rate - Levee upgrade rate of 0.03255 cents in the dollar in terms of Sections 516 and 529 of the Local Government Act 1993, calculated on the land value in respect of all rateable lands situated in the centres of population defined by Council Resolution 12/176 as the City of Wagga Wagga and the Village of Forest Hill, excluding Business - City and Suburbs land, rated in accordance with the provisions of Section 518 of the Local Government Act 1993, Residential (Other) land as defined, and also Farmland, rated in accordance with the provisions of Section 515 of the Local Government Act 1993, within such centres of population

viii Residential – Other Special Rate - Levee upgrade rate of 0.02424 cents in the dollar calculated on the land value in respect of all rateable land within the Council’s area, which, in the Council’s opinion, is land which:-

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

(b) is either:

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

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

ix Residential – Villages Special Rate - Levee upgrade rate of 0.02146 cents in the dollar in terms of Sections 516 and 529 of the Local Government Act 1993, calculated on the land value of all rateable lands situated in the centres of population defined by Council Resolution 12/176 as the villages of San Isidore, Gumly Gumly, Tarcutta, Humula, Uranquinty, Mangoplah, Oura, Currawarna, Ladysmith, Galore, Collingullie and North Wagga excluding Business - Villages and Rural land, rated in accordance with the provisions of Section 518 of the Local Government Act 1993, Residential (Other) land as defined, and also Farmland, rated in accordance with the provisions of Section 515 of the Local Government Act, within such centres of population

x Business - City and Suburbs Special Rate - Levee upgrade rate of 0.06061 cents in the dollar calculated on the land value of all rateable non-residential land, which cannot be classified as residential, or farmland land in the centres of population defined by Council Resolution 12/176 as the City of Wagga Wagga and the Village of Forest Hill, in terms of Sections 518 and 529 of the Local Government Act 1993

xi Business - Villages and Rural Special Rate - Levee upgrade rate of 0.02711 cents in the dollar calculated on the land value of all rateable land in the Council’s area, in terms of Sections 518 and 529 of the Local Government Act 1993, defined by Council Resolution 12/176, excluding lands defined as Business - City and Suburbs, Residential, and Farmland

xii Farmland - Special Rate - Levee upgrade rate of 0.00690 cents in the dollar, calculated on the land value of all rateable land, which, in Council’s opinion, qualifies as farmland as defined in Section 515 of the Local Government Act 1993

xiii Sewerage Services Annual Charge of $522.00 per dwelling unit. Multiple residence properties are charged at $522.00 per residence, for all residences, and non-strata title residential premises on a single allotment (flats/units) situated within the Council’s centres of population, capable of being connected to the sewerage service scheme except when excluded by specific council policy, such charge being made in terms of Section 501 of the Local Government Act 1993

xiv Non Residential Sewer Charges

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

Access charge based on Meter size for 2018/19 is as follows:

20mm	$160.00
25mm	$250.00
32mm	$410.00
40mm	$640.00
50mm	$1,000.00
80mm	$2,560.00
100mm	$4,000.00
150mm	$9,000.00

Non Residential includes:

(a) Non-residential strata

(b) Small community property

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

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

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

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

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

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

(f) land that belongs to a public hospital

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

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

Usage charge

Per kl usage charge of $2.20 per kl will apply to all Non Residential Sewer customers except excluded by specific Council Policy, such charge being made in accordance with Section 501 of the Local Government Act 1993.

xv Pressure Sewer Scheme – Annual pump maintenance charge (rural residential and villages). An additional sewerage service charge of $163.00 per pump for all premises connected to the sewerage system via a pressure service for the maintenance and replacement of the pump unit as necessary

xvi Domestic Waste Management Service Charge of $330.00 per service on a per occupancy basis per annum for a service rendered in the centres of population and within the scavenging areas defined as the City of Wagga Wagga and the villages of North Wagga Wagga, Gumly Gumly, Forest Hill, Kapooka, Tarcutta, Mangoplah, Oura, Ladysmith, Brucedale, Uranquinty, Bomen and Cartwrights Hill, charged in accordance with the provisions of Section 496 of the Local Government Act 1993

xvii Domestic Waste Management Service Charge Rural Residential of $330.00 per service to be applied to all properties utilising a waste collection service managed by Council, but outside Council’s defined waste collection service areas charged in accordance with the provisions of Section 496 of the Local Government Act 1993

xviii Domestic Waste Management Annual Charge of $54.00 per service to be applied to all properties utilising an upgraded general waste bin in accordance with the provisions of Section 496 of the Local Government Act 1993

xix Domestic Waste Management Annual Charge of $59.00 per service to be applied to all properties utilising an upgraded recycling bin in accordance with the provisions of Section 496 of the Local Government Act 1993

xx Domestic Waste Management Service Charge of $34.00 for each parcel of rateable undeveloped land not receiving a service within the scavenging areas of the City of Wagga Wagga and the villages of North Wagga Wagga, Gumly Gumly, Forest Hill, Kapooka, Tarcutta, Mangoplah, Oura, Ladysmith, Brucedale, Uranquinty, Bomen and Cartwrights Hill, such charge being levied in accordance with the provisions of Sections 496 of the Local Government Act 1993

xxi Domestic Waste Management Service Charge of $110.00 for each additional domestic bin, being an additional domestic bin provided over and above the three bins already provided by the service, rendered in the centres of population, and within the scavenging areas defined as the City of Wagga Wagga and the villages of North Wagga Wagga, Gumly Gumly, Forest Hill, Kapooka, Tarcutta, Mangoplah, Oura, Ladysmith, Brucedale, Uranquinty, Bomen and Cartwrights Hill, charged in accordance with the provisions of Section 496 of the Local Government Act 1993. On application, depending on individual circumstances, this fee may be waived.

xxii Commercial Waste Management Service Charge of $330.00 per occupancy per annum, for a service rendered in the centre of population and within the scavenging areas defined as the City of Wagga Wagga and the villages of North Wagga Wagga, Gumly Gumly, Forest Hill, Kapooka, Tarcutta, Mangoplah, Oura, Ladysmith, Brucedale, Uranquinty, Bomen and Cartwrights Hill, charged in accordance with the provisions of Section 501 of the Local Government Act 1993

xxiii Commercial Waste Management Service Charge of $110.00 for each additional commercial general waste bin, being an additional bin provided over and above the bin/s already provided by the service, rendered in the centres of population and within the scavenging areas defined as the City of Wagga Wagga, and the villages of Forest Hill, Ladysmith, Mangoplah, Tarcutta, Oura, North Wagga and Gumly Gumly, charged in accordance with the provisions of Section 501 of the Local Government Act 1993

xxiv Commercial Waste Management Service Charge of $110.00 for each additional commercial recycling or food organics and garden organics bin, being an additional bin provided over and above the bin/s already provided by the service, rendered in the centres of population and within the scavenging areas defined as the City of Wagga Wagga and the villages of North Wagga Wagga, Gumly Gumly, Forest Hill, Kapooka, Tarcutta, Mangoplah, Oura, Ladysmith, Brucedale, Uranquinty, Bomen and Cartwrights Hill, charged in accordance with the provisions of Section 501 of the Local Government Act 1993

xxv Commercial Waste Management Charge – Small Commercial Strata Properties of $110.00 to be applied to all commercial strata properties with a parcel area of less than 70 square metres not utilising a Council commercial waste service, and capable of using waste service funded by the body corporate

xxvi Commercial Waste Management Annual Charge of $61.00 per service to be applied to all commercial properties utilising an upgraded recycling bin in accordance with the provisions of Section 501 of the Local Government Act 1993

xxvii Multi Unit Developments (Non Strata) Domestic Waste Management Service Charge of $330.00 for each rateable property with an additional bin charge of $110.00 to apply for each additional bin charged in accordance with the provisions of Section 496 of the Local Government Act 1993. For the purposes of Council’s Fees and Charges the definition of Multi-Unit developments (Non Strata) involves the development of three or more residential units on a site at a higher density than general housing development. This reduced charge is available on application to Council, otherwise full Domestic Waste Service Charge of $330.00 applies, per occupancy.

xxviii Multi Unit Developments Wheel Out Wheel In (WOWI) Services Charge of $200.00 per occupancy. For the purposes of Council’s Fees and Charges the definition of Multi-Unit developments (Non Strata) involves the development of three or more residential units, including Strata and Non Strata properties, on a site at a higher density than general housing development. On application, this service may be available to individual properties. Depending on individual circumstances, this fee may be waived.

xxix Stormwater Management Service Charges

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

· Non rateable land

· Crown Land

· Council Owned Land

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

· Vacant Land

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

· Land belonging to a charity and public benevolent institutions

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

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

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

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

f) approve the budget variations as detailed in the budget section of the report

Report

The Long Term Financial Plan 2018/28 and the Combined Delivery Program and Operational Plan 2018/19 have been formulated together with consideration to the Wagga View Community Strategic Plan 2040 previously endorsed by Council as well as the draft Disability Inclusion Action Plan 2017/21.

These documents have been created as part of Council’s Sustainable Future Framework, based on the local government requirements for Integrated Planning and reporting.

Public Exhibition and Engagement

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

· Public Notices

· Advertisements and editorial in Council news

· Wagga View online consultation page

· Newsletters to registered Wagga View users

· Public exhibition page of Council’s website

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

· Public display of all documents at the Civic Centre

The Wagga View online consultation page set up for the public exhibition period had 237 visits with 43 document downloads. A newsletter to registered users of the online consultation platform was sent and delivered to 1,226 users.

The infographic published with Council’s expenditure for every $100 in the budget was made into a video and posted on social media. The video was viewed 2,738 via Facebook.

Submissions Received

Submission	Council Officers Response
Request by Riverina Conservatorium of Music Limited to increase their annual funding contribution	The programs and events requested to be fully funded from the Riverina Conservatorium of Music as part of their submission include the following: · Music Education Bursary and Equity Program $5,000 · Lunchtime Concert Series $8,500 · Riverina Youth Orchestra $3,500 Total required funding of $17,000. Council Response: Council currently contributes an annual budgeted Section 356 donation of $8,727. In addition to this, Council budgets for $1,500 in fee waivers. This has been an ongoing contribution since 2009/10. This request would result in the requirement of additional funding of $8,273. The request was considered as part of the 2018/28 budget process, but due to budget constraints and the longevity of the significant contribution already being made, it was not endorsed by Management and not included as part of the draft 2018/28 Long Term Financial Plan.
Request by Booranga Writers’ Centre to increase their annual funding contribution	Booranga Writers’ Centre have requested in their submission an increase in indexation of funding. Council Response: Council currently contributes an annual budgeted Section 356 donation of $3,500. This has been an ongoing contribution since 2010/11. This request would result in the requirement of additional funding of $2,500. The request was considered as part of the 2018/28 budget process, but due to budget constraints and the longevity of the existing contribution, it was not endorsed by Management and not included as part of the draft 2018/28 Long Term Financial Plan.
Funding of $95,000 has been requested by the Anglican Parish of Wagga towards a new preschool at the Ashmont Centre	The current day care operations at the Ashmont Centre will cease operations due to a number of contributing factors including a change in funding model and declining enrolments. The Anglican Parish of Wagga has expressed an interest in developing a preschool in this building that is currently owned by Council. This preschool is proposed to be a partnership approach to provide vital educational and support services to disadvantaged people in the local community. Funds have been requested from Council as follows: · Refurbishment Contribution: $40,000 · Start-up funding: $35,000 · Recurrent funding subsidy: $20,000 Total 2018/19 Funding Request = $95,000 Total Annual Subsidy Request = $20,000 Council Response: If this request was to be endorsed as part of the 2018/19 draft balanced budget, this request would result in a reduction in service levels already provided to the community to allow for this additional funding. Council officers have recently met with representatives from the Anglican Parish of Wagga. Council officers have since lobbied Family and Community Services (FACS) for the need for a start-up and/or emergency grant in order to assist the establishment of an Ashmont Preschool. It is therefore proposed to place this budget request on hold until the Parish receives a response from FACS.
Request for funding from the Wagga Wagga Business Chambers	Three funding options were offered to Council offering different benefits to Council and the business community. The options proposed were: · $25,000 (Supports I –VIII ) · $17,500 (Supports II – VIII ) · $10,000 (Supports IV – VIII ) Associated benefits for options above include: i. Provides financial stability to ensure the WWBC can support permanent staff ii. Build and maintain an adaptable business directory iii. Create a portal for members to communicate with other members and businesses iv. Provide WWCC with a local partner to introduce new and emerging businesses to Wagga v. Provide WWCC a Crow Award Level sponsorship (value $5,500) vi. Allow WWCC to host an event/s engaging chamber members vii. Provide WWCC with Four tickets to the annual Golden Crow Awards viii. Allow WWCC to sponsor a Crow Award Category (as appropriate ) Council Response: Operational savings have been identified in the Economic Development Highway Billboards budget. It is proposed to transfer $10,000 of these savings into the Generic Project Savings Reserve in 2017/18 and transfer these funds from this Reserve in 2018/19 to fund this contribution.
Request for funding of $7,500 from Women in Business Wagga	This funding was requested to further enhance networking events by attracting more accomplished speakers to the region and support additional program development to provide more events and activities. Council would receive major sponsorship status across eight networking events. Council Response: Operational savings have been identified in the Economic Development Highway Billboards budget. It is proposed to transfer $7,500 of these savings into the Generic Project Savings Reserve in 2017/18 and transfer these funds from this Reserve in 2018/19 to fund this contribution.
Submission from Peter Campbell various improvements for the City	Investment in irrigation for parks to improve presentation: Council Response: The installation of irrigation in parks is provided based on the hierarchy of parks and the amount of usage each park receives in accordance with Council’s adopted Playground Strategy. Council endeavours to provide irrigated open spaces within all suburbs however the irrigation of all public open spaces is not considered to be economically or environmental sustainable. Improvements of the visual appearance of the City entrances: Council Response: An internal working group has been established for the development of a City Entry Strategy. Progression of the Rail Trail and removal of the road signs regarding rail trail: Council Response: The Rail Trail has not been identified as one of Council’s priorities for the 2018/2019 financial year.
Committee 4 Wagga has requested clarification on the Long Term Financial Plan for various items as listed in the next section They have also indicated support of a number of Council’s processes in regards to the Long Term Financial Plan and Combined Delivery Program and Operational Plan as mentioned at the end of this section	The prioritisation and timing rationale of essential infrastructure projects against other infrastructure expenditure: Council Response: There are comprehensive reviews done on all capital projects with relevant staff, managers, the Executive and Councillors. These reviews determine the timing of the project based on prioritisation which includes risk assessment, funding availability and resourcing capabilities. These reviews are also conducted in consultation with adopted Council plans such as the Community Strategic Plan, WWITS, ROSCS and Developer Contribution Plans. The final list of projects are then presented as part of the draft 2018/28 LTFP Capital Works program. Assurance that the Main City Levee remains on track for completion in 2018: Council Response: Stage 1 of the Main City Levee Upgrade is due to be completed by 2018. Stage 2 of the Main City Levee upgrade is due to be completed by 2019/20. The timing in the draft 2018/28 LTFP was part of the original adopted budget for the Levee Upgrades and the SRV with completion of the project initially budgeted in 2020/21. The remaining stages of the project once determined will then be reflected and adjusted if required. The Multi Purpose Stadium will be built to international standards to enable securing state, national and potentially international events: Council Response: The stadium is being built to standards that would allow for state, national and international events to be hosted. Additional temporary seating, amenities and equipment would be required to hold major spectator or televised events. Acknowledges an annual increase of 3-5% for charges and user fees and requests Council to consider its capacity to benchmark charges against similar councils to demonstrate ‘market’ competitiveness and effectiveness of continuous improvement activities: Council Response: In line with Council’s Fit for the Future Improvement Proposal and generating additional revenue, it was determined to adopt a 5% increase for all fees & charges across Council. Each individual area then reviews the proposed increases as part of the annual budget review process and determines if this increase is appropriate in line with Council’s pricing policy as included in Council’s Fees & Charges document. This policy includes guidelines on fees regarding legislation, cost recovery, Council subsidised fees, commercial mark-up and competitiveness within Local Government and the market. The C4W questions whether Council is in a position to demonstrate budget employee benefits savings/cost reductions in total dollar employee costs as a consequence of headcount management, resource reallocation and continuous improvement project outcomes and clarification whether these savings have been included in the plan: Council Response: Council have had significant employee costs savings in previous financial years resulting from organisational restructures, an imposed three year salary cap from 2015/16 to 2017/18 and ongoing operational service reviews. These savings have already been reflected in the current salary budgets. There have been some increased wage costs for 2018/19 which is due to increased resourcing requirements as a result of significant government grant funding opportunities for various capital works projects. Given the annual target of $800k in cost reductions is there no budgeted cost reductions in other operating expenses: Council Response: There has already been significant service and efficiency reviews undertaken over the previous budget review processes as part of Council’s Continuous Improvement Process. This has resulted in cost savings that have already been factored into Council’s ongoing 10 year operating expenses budgets. This is a target that is not budgeted each financial year but is for efficiencies that can be determined above the budgeted efficiencies throughout the year. Is the statement that a Special Rate Variation would on average increase rates by 19% for 2021/22 correct: Council Response: This proposed scenario which has been included in the LTFP (Scenario 2) is to partly fund the Infrastructure Shortfall and is based on a 1 year increase only for 2021/22 of 19% which is then maintained along with the annual rate peg forecasted amount of 2% each year. In response to the Combined Delivery Program and Operational Plan, the committee requests Council to consider clearly identifying continuous improvement initiatives and targets as Operational Plan items under each Delivery Plan item: Council Response: The annual targeted efficiencies of $800K and increased revenue targets of $300K have not been included as a budgeted line item or an item in the Delivery Program for 2018/19. This is due to the difficulty in measuring these items as the targets may be achieved in previous or future financial years’ budgets, or included in Council’s overall end of year result from savings across a range of operational budget lines. The Fit for the Future Reserve gives a more accurate indication of whether this target is being met on an annual basis as part of the proposed 10 year closing reserve balances. Council is currently working on planning for and capturing data on efficiencies in a way that better informs our community. · Overall Committee4Wagga continues to be supportive of Council’s Long Term Financial Plan Objectives and the objective of imbedding the process of continuous improvement throughout the organisation. · They acknowledge and appreciate Council’s ongoing contribution to C4W. · It is also noted that the transparency in identifying developer contributions in the funding of infrastructure projects is recognised and appreciated.
Submission from Angela Armitage regarding the lack of funding allocated to the environment	Lack of funding for the environment referring to the 85 cents in every $100 categorised as environment funded spending, comparing to the $32.97 for every $100 categorised for major works and construction. Council response: Council acknowledges the breakdown communicating Council’s budget is high level. It does not communicate the entirety of projects and programs that have positive impacts on the environment under the Environmental section. As an example, a portion of the $32.97 for every $100 allocated for capital funding would have an environmental component included within it. As a specific example, the introduction of the Food Organics Garden Organics (FOGO) collection that will have positive impacts on the environment but its costs are included in Waste Management.
Submission from Steven Littlewood in regards to the Draft Commercial Waste Fees and Charges	Steven Littlewood disagrees with the commercial waste charge, advising that the private contractor he utilises is cheaper. Steven also states that the area his business is located is industrial, not commercial and the fee shouldn’t apply. Council Response: Under Council’s rating structure, commercial properties are already charged an annual commercial bin service fee, with some businesses opting to utilise the service, and some not. Council is currently in the process of rolling out new commercial waste bins offering a new two bin system along with the option of a Food Organics and Garden Organics system for commercial properties gives property owners more options. Council’s rating structure includes residential, rural farmland and business categories. There is no separate category for industrial.

Long Term Financial Plan 2018/28

Additional context has been included in the Major Projects Section (Page 12) of the Long Term Financial Plan for the ‘Riverina Intermodal Freight and Logistics Hub’ project. This provides an update on Stage 2 of the project.

Fees and Charges 2018/19

Airport Charges

During the public exhibition period, the March 2018 Consumer Price Index (CPI) was released at 1.90% for the period March 2017 to March 2018. This has been applied to the Airport Charges outlined in the publicly exhibited document below:

Item Number (Public Exhibition Item Number)	Fee Name	2017/18 Adopted Fee	2018/19 Public Exhibition Fee	2018/19 Final Proposed Fee
0959 (0957)	Landing charge – rotary wing aircraft (non RPT)	$13.60	$13.60 + March 2018 All Groups CPI	$13.86
0960 (0958)	Landing charge – rotary wing aircraft (non RPT)	$6.80	$6.80 + March 2018 All Groups CPI	$6.93
0961 (0959)	Resident Commercial and Pilot Training Aircraft – Annual Landing Permit	$330.00	$330.00 + March 2018 All Groups CPI	$336.27
0962 (0960)	Resident Freight Aircraft – Annual Landing Permit	$166.20	$166.20 + March 2018 All Groups CPI	$169.36
0963 (0961)	Private Aircraft – Annual Landing Permit	$165.00	$165.00 + March 2018 All Groups CPI	$168.14
0967 (0965)	Passenger Service Charge – Base rate for arriving and departing passengers	-	$13.35 + March 2018 All Groups CPI	$13.60
0968 (0966)	Passenger Service Charge Wagga/Sydney up to base passengers threshold combined (180,000)	$13.35	$13.35 + March 2018 All Groups CPI	$13.60
0969 (0967)	Passenger Service Charge Wagga/Sydney greater than base threshold passengers combined	$6.67	$6.67 + March 2018 All Groups CPI	$6.80
0970 (0968)	Passenger Service Charge Wagga/Melbourne up to base passengers threshold combined (6,000)	$13.35	$13.35 + March 2018 All Groups CPI	$13.60
0971 (0969)	Passenger Service Charge Wagga/Melbourne greater than base passengers threshold combined	$6.67	$6.67 + March 2018 All Groups CPI	$6.80
0972 (0970)	Passenger Service Charge Wagga/Brisbane	$13.35	$13.35 + March 2018 All Groups CPI	$13.60

These fees and charges have been updated in the final document attached.

Property Management

During the public exhibition period, Council staff were made aware of the Crown Land reforms to be introduced during 2018, which will bring about changes to the road closure process administered under the Roads Act 1993. Under the change, Councils will be responsible for the road closure process for both formed and unformed roads. As a result of this change, an additional fee has been developed for a “Permanent road closure application fee (unformed road)” and the name of an existing fee changed from “Permanent council public road closure fee” to “Permanent road closure application fee (formed road)”.

These changes have been included in the final document attached and the new fee is outlined in the table below.

Item Number

(Public Exhibition Item Number)

Fee Name

2017/18 Adopted Fee

2018/19 Public Exhibition Fee

2018/19 Final Proposed Fee

0421

(NEW)

Permanent road closure application fee (unformed road)

$1,650.00

Financial Implications

The development of the 2018/28 Long Term Financial Plan has not been one without its challenges.

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

The 2018/28 Long Term Financial Plan is presented to Council for adoption. A balanced budget position is shown for the 2018/19 financial year only, which was achieved through operating efficiencies as a result of Council’s continuous improvement program.

The LTFP is updated and presented to the community and Council on an annual basis. A summary of the 2018/19 budget is shown below:

2018/19 Budget Snapshot:

Operating:

$112.6 million – total operating income budget

$128.5 million – total operating expenditure budget

Capital Works:

$33.3 million - Capital renewals

$30.1 million - New Capital projects

$26.3 million – Potential Capital projects

$89.6 million - Total Capital Budget

Budget Variations

1. Request for funding in 2018/19 of $7,500 from Women in Business Wagga.

Operational savings have been identified in the Economic Development Highway Billboards budget. It is proposed to transfer $7,500 of these savings into the Generic Project Savings Reserve in 2017/18 and transfer these funds from this reserve in 2018/19 to fund this contribution.

2. Request for funding in 2018/19 of $10,000 from the Wagga Business Chambers.

Operational savings have been identified in the Economic Development Highway Billboards budget. It is proposed to transfer $10,000 of these savings into the Generic Project Savings Reserve in 2017/18 and transfer these funds from this reserve in 2018/19 to fund this contribution.

Policy and Legislation

These documents have been created to meet Council’s Integrated Planning and Reporting requirements under the Local Government Act 1993.

Link to Strategic Plan

Community Leadership and Collaboration

Objective: We have strong leadership

Outcome: We plan long term

Risk Management Issues for Council

The inability to meet everyone’s expectations will continue to be a challenge for Council’s planning process. Council will continue to be active during the public exhibition phase of the planning documents to ensure that the community is informed of the documents and their content and given an opportunity to make a submission.

Internal / External Consultation

The documents were placed on public exhibition from the for a 28 day period from the 24 April – 23 May 2018. As part of the exhibition period a variety of communication methods were used, to not only promote the public exhibition period but also promote the purpose of the documents.

Mail

Media

Community Engagement

Digital

Rates notices insert

Direct mail

Letterbox drop

Council news

Media releases

Print advertising

TV/radio advertising

One-on-one meetings

Your Say website

Community meetings

Stakeholder workshops

Drop-in sessions

Surveys and feedback forms

Social media

Email newsletters

Website

Digital advertising

TIER

Consult

Involve

Collaborate

Attachments

1.	2018/19 Combined Delivery Program and Operational Plan - Provided under separate cover
2 ⇩.	Sumbission 01 - Riverina Conservatorium of Music
3 ⇩.	Submission 02 - Booranga Writers Centre
4 ⇩.	Submission 03 - Wagga Anglican Parish
5 ⇩.	Submission 04 - Wagga Wagga Business Chambers
6 ⇩.	Submission 05 - Women in Business Wagga
7 ⇩.	Submission 06 - Peter Campbell
8 ⇩.	Submission 07 - Committee 4 Wagga
9 ⇩.	Submission 08 - Angela Armitage
10 ⇩.	Submission 09 - Steve Littlewood
11 .	Long Term Financial Plan 2018/2028 - Provided under separate cover
12 .	2018/19 Fees and Charges - Provided under separate cover

	2012/13	2013/14	2014/15	2015/16	2016/17
User Charges and Fees Collectible - $’000	20,021	21,114	23,432	24,195	23,698
User Charges and Fees Outstanding - $’000*	2,534	2,612	1,440	1,206	1,062
User Charges and Fees Percentage Outstanding*	13.62%	13.53%	6.80%	5.52%	5.03%

Debtor Type	Invoice Date	Amount	Reason for Write Off
Cemetery Fees	04/01/2016	$4,014.04	This amount refers to outstanding burial fees at the Cemetery ($3,012.00) along with debt recovery fees ($1,002.04). Recent attempts from Council's Debt Recovery Agency have been unable to locate the person who was responsible for this account.
Food Inspection Charges	2010 - 2015	$2,009.18	This amount refers to Food Inspection charges over a four (4) year period for a business that is no longer trading.
Food Inspection Charge	2015	$1,022.40	This amount refers to Food Inspection charges for a business that has new owners since these inspection charges were incurred.
Sewer Non-Domestic Charges	2012	$1,102.42	Change in ownership of property, and debt not automatically transferred to new property.
Sewer Non-Domestic Charges	2004	$1,471.46	Sewer usage charges that were not originally invoiced.
Total Amount to be Written Off - Accounts greater than $1,000		$9,619.50