Agenda of Ordinary Meeting of Council

Report submitted to the Ordinary Meeting of Council on Monday 25 February 2019. RP-3

RP-3 PROPOSED AMENDMENT TO THE WAGGA WAGGA LOCAL ENVIRONMENTAL PLAN 2010 - REZONING OF 53 PLUMPTON ROAD AND 108 BRINDABELLA DRIVE, TATTON

Author: Adriaan Stander

Director: Natalie Te Pohe

Summary:

Council is receipt of a Planning Proposal to rezone Lot 53 Plumpton Road and 108 Brindabella Drive, Tatton. An assessment of the planning proposal resulted in a slightly different approach than presented by the proponent. The recommendation is that the planning proposal may proceed as follows:

1. Rezoning of part of Lot 336 DP 1247818, part of Lot 10 and Lot 11 DP 1113058, and part of Lot 335 DP 1247818 from E2 Environmental Conservation and R5 Large Lot Residential to R1 General Residential

2. Rezoning of part of Lot 336 DP 1247818 from E2 Environmental Conservation to R5 Large Lot Residential.

3. Remove the minimum lot size requirement of 0.2ha that applies to part Lot 335 DP 1247818

4. Apply a minimum lot size requirement of 0.2ha to part of Lot 336 DP 1247818.

Recommendation

That Council:

a support planning proposal LEP18/0005 and addendum prepared 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 if submissions are received during the exhibition period

i addressing any submissions made in respect of the planning proposal

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

Application Details

Submitted Proposal:	Planning Proposal to rezone Lot 53 Plumpton Road and 108 Brindabella Drive, Tatton.
Land Owner:	Matt Jenkins Pty Ltd

Proposal

Council is in receipt of a planning proposal from Matt Jenkins Pty Ltd, seeking to amend the Wagga Wagga Local Environmental Plan 2010 (LEP) to rezone part of Lot 2 DP243027 and part of Lot 327 DP 1187026 (now consolidated in to Lot 336 DP 1247818) from E2 Environmental Conservation and R5 Large Lot Residential to R1 General Residential. The proposal is also to remove the minimum lot requirement of 0.2ha of the LEP that applies to part of the land as per the illustration below.

A more detailed description of the proposal with supporting information is attached to this report.

An assessment of the planning proposal has concluded that the proposal may proceed with the following changes as per the details and illustrations below:

2. Rezoning of part of Lot 336 DP 1247818 from E2 Environmental Conservation to R5 Large Lot Residential.

3. Remove the minimum lot size requirement of 0.2ha that applies to part Lot 335 DP 1247818

4. Apply a minimum lot size requirement of 0.2ha to part of Lot 336 DP 1247818.

Site and locality

The subject site is located on the northern side of Brindabella Drive, Tatton and is partly located within the R1 General Residential Zone, E2 Environmental Conservation Zone and R5 Large Lot Residential Zone.

Land on the southern side of Brindabella Drive incorporates the very southern fringe of Tatton and transitions to Springvale, a rural residential area. Land to the east is zoned RE1 Public Recreation and is occupied by the Wagga Wagga Country Club.

Key considerations

1. Population growth and housing demand

The addition of dwellings to the housing stock is a major driver of population growth in in the city, providing opportunities for households to relocate from other areas or new households to form locally. At a growth rate of 1.2% the population of Wagga Wagga will exceed 80,000 people in 2040, however the city must plan to grow to beyond 100,000 people. To accommodate a 2% population growth to 100,000 people and an additional 14,000 homes by 2040, 1,750 hectares of land is required if density rates continue at 8 dwellings per hectare.

The supply of residential land was last considered in 2013 as part of the Wagga Wagga Spatial Plan 2013-2043 that identified that there was approximately 426 hectares of urban release area. At a density pattern of 8 dwellings per hectare this equates to an additional 3,500 dwellings. From this, current greenfield areas can accommodate 10 years supply of housing at the projected growth rate and 5 years supply at the aspirational growth rate of 2%.

Whilst the majority of housing will be provided within urban release areas, infill development through redevelopment and intensification (as proposed by the planning proposal) will also play a vital role in utilising existing services to accommodate the growing population of the city. It will also contribute to the mix of housing types available in the city.

2. Land use strategies underway and interim arrangements

Council officers are currently in the process of reviewing and developing new land use strategies for the city. One of the key priorities is to consider the location of future growth areas and to identify existing urban areas in the city that may be intensified through further subdivision.

Noting that it will take some time to complete the above strategic work, landowners may as an interim arrangement lodge planning proposals to increase the development opportunities for their properties prior to the finalisation of the strategic work. Planning proposals will be considered on merit and the onus is on the proponents to provide Council with the necessary information to undertake assessments to determine if there is sufficient justification for a planning proposal to proceed prior to the completion of the above strategic work.

3. Consistency with strategic directions

Even though the planning proposal is not supported by a local housing strategy endorsed by the Department of Planning and Environment, the Wagga Wagga Spatial Plan 2013/2043 that is endorsed by the Department of Planning and Environment identifies several approaches to addressing land demand for urban purposes in the city, and encourages additional housing opportunities within existing urban areas where existing services and amenities are already provided. The proposal to rezone the land is based on site opportunities to optimize the use of available land that is currently serviced by public infrastructure and accessible to existing local community facilities and therefore considered consistent with the provisions of the Spatial Plan.

The proposal is also consistent with the recommendations of the Riverina Murray Regional Plan 2036, the draft Activation Strategy, Section 9.1 Ministerial Directions as well as all relevant State Environmental Planning Policies.

4. Justification for an alternative zoning and minimum lot size provision

The subject land was originally considered as part of the Tatton residential neighbourhood, however due to historic overland flooding and concerns relating to salinity and shallow groundwater, the land was zoned E2 Environmental Conservation. Further studies and investigation by the proponent have concluded that the subject land is unreasonably restricted through its zoning.

The overland flow flood modelling undertaken by WMA Water confirmed that the area is impacted by the design flood (the 1% AEP event), generally falling within a low hazard flood storage area and the flood fringe. A minor flow path is located on the very eastern edge of the subject land but does not constitute the main floodway. The flood impact of development on the subject land was modelled using a preliminary development concept. The maximum off-site impact is 0.3 metres within the retention basin at 108 Brindabella Drive and 0.05 metres on the western side of the basin. Accordingly, the off-site flood level impact is viewed as relatively minor. Further consideration of the development concept would occur at development application stage and could include design measures to lessen the flood impact if required.

The area to the north of the subject site is not considered appropriate for intensification as a result of overland flow flooding and as such will remain restricted for now. Council officers will review the remaining E2 land to the north of the subject site as part of other E2 zoned land in the city in future.

Investigations indicated that the salinity risk rating is ‘low’ where the groundwater depth is between 5-10 metres and ‘very low’ where it exceeds 10 metres. The readings have revealed a general decline in the standing water level and has remained steady around 9 metres below ground level for the last 10 years. The piezometer was established in 1997 and readings have been taken in both severe drought conditions and periods of above average rainfall. The recorded levels substantiate the view that a shallow groundwater presence is unlikely to be a concern for this area.

In light of the above, the E2 Environmental Conservation zoning on the subject land is considered inappropriate. The proposed rezoning to R1 General Residential and R5 Large Lot Residential is consistent with the amenity of the Tatton neighbourhood and will assist in maximising the development opportunities on the site which in turn will contribute to a mix housing of types to accommodate the city’s growth forecasts. The change in zoning and new lot size provision will increase the development yield of the site to approximately 40 lots. The proposed minimum lot size requirement along Plumpton Road aligns with the lot sizes proposed in the concept subdivision plan and will ensure that future subdivision will be reflective of the existing rural residential environment along Plumpton Road and to the south of Brindabella Drive.

5. Infrastructure

One of the key issues to consider with LEP amendments is the ramifications of any proposal on existing infrastructure and the ability of existing networks to cope with increased demands. Phasing and service planning of new development areas must ensure that services can be equitably provided to meet baseline community needs and expectations.

The site is located in an existing urban environment and has access to existing services and infrastructure including roads, reticulated water and waste collection services. Other infrastructure networks and services, including public transport, waste management/recycling, health, education, emergency, mail and other community services are established in the local area and accessible to the subject site. Existing sewer capacity can accommodate the development potential on the site of approximately 40 additional lots.

A stormwater management strategy shall be developed for the site as part of any future development application on the site. The strategy shall recognise the existing dam located in the south western corner of the site which serves an important role in stormwater mitigation of the Tatton neighbourhood. The dam shall be incorporated into the strategy for the site and dedicated to Council as part of a future subdivision application.

In terms of traffic, the planning proposal is supported by a traffic impact assessment which concluded that the proposed LEP amendment and preliminary subdivision concept is likely to have minimal impact on the existing road network. Any future development application on the site will require a detailed assessment in relation to the above and may require augmentation in consideration of the final subdivision design.

Conclusion

The planning proposal has been considered in respect to the benefits to 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. It complies with the provisions of the endorsed strategic documents, including Riverina Murray Regional Plan 2036 and Wagga Wagga Spatial Plan 2013 -2043. Where inconsistencies exists, it has been justified.

2. It meets all relevant Section 9.1 (previously Section 117) Ministerial Directions

3. Addresses all applicable State Environmental Planning Policies

4. Demonstrates that the existing E2 Environmental Conservation Zone is not appropriate for the site and that the proposed R1 General Residential Zoning and R5 Large Lot Residential Zoning will assist in providing a mix of housing options available in the city to address anticipated population growth.

Taking into account the full range of matters that have been considered as part of this assessment, it is considered that support for the proposal is reasonable and in the public’s interest.

Financial Implications

In accordance with Council’s 2018/19 Fees and Charges, a Minor LEP Amendment (medium complexity) attracts total application fees of $15,000.00. The proponent has paid this fee. There are no requirements to amend the DCP therefore the $2,000 fee for such action is not required to be paid in this instance.

Policy and Legislation

Environmental Planning and Assessment Act 1979

Wagga Wagga Local Environmental Plan 2010

Link to Strategic Plan

The Environment

Objective: We plan for the growth of the city

Outcome: We have housing that suits our needs

Risk Management Issues for Council

An approval of the proposal may be subject to public scrutiny during the formal public consultation process, and may put additional pressure on Council to review land that is zoned E2 Environmental Conservation Land 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 a pre-Gateway review process. The reasons for refusal will have to be justified and withstand scrutiny and cross-examination.

Internal / External Consultation

A cross-directorate internal referral occurred. The proposal is supported in principle. Existing infrastructure is able to support the anticipated development outcome. The dam on the south-eastern side of the site is important for stormwater mitigation strategies for the suburb and should become the responsibility of Council.

A Councillor workshop was held in relation to this matter on 21 January 2019.

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

Proposed consultation methods are indicated in the table below.

Mail

Media

Community Engagement

Digital

Rates notices insert

Direct mail

Letterbox drop

Council news story

Council News advert

Media releases

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

Attachments

1 ⇩.	LEP18/0005 - Council Officer's Assessment
2 ⇩.	LEP18/0005 - Addendum to Planning Proposal
3.	LEP18/0005 - Planning proposal submitted by proponent - Provided under separate cover

Report submitted to the Ordinary Meeting of Council on Monday 25 February 2019. RP-4

RP-4 PROPOSED AMENDMENT TO THE WAGGA WAGGA LOCAL ENVIRONMENTAL PLAN 2010 TO REDUCE THE MINIMUM LOT SIZE PROVISIONS APPLICABLE TO 6 VINCENT ROAD AND 531 KOORIGAL ROAD, LAKE ALBERT

Author: Adriaan Stander

Director: Natalie Te Pohe

Summary:

Council is in receipt of a planning proposal to reduce the minimum lot size provisions applicable to three properties on the corner of Vincent Road and Kooringal Road, Lake Albert. The recommendation is to proceed with the planning proposal.

Recommendation

That Council:

a support planning proposal LEP18/0014 and addendum prepared 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 if submissions are received during the exhibition period

i addressing any submissions made in respect of the planning proposal

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

Application Details

Submitted Proposal:

Planning proposal to reduce the minimum lot size provisions applicable to Part of Lot 1 DP 219692 & Lot 1 DP 65324, located at 6 Vincent Road and Lot 2 DP 1009360 at 531 Kooringal Road, Lake Albert

Land Owners and applicants:

Lot 1 DP 219692 & Lot 1 DP 653241 – Barry and Lorraine McClean

Lot 2 DP 1009360 – Robert and Dianne Chambers

DESCRIPTION OF PROPOSAL

The proposal is to amend the Wagga Wagga Local Environmental Plan 2010 (LEP) to reduce the minimum lot size provisions applicable to Part of Lot 1 DP 219692 & Lot 1 DP 65324, located at 6 Vincent Road and Lot 2 DP 1009360, located 531 Kooringal Road, Lake Albert from 2 hectares to 0.15 hectares as per the illustration below.

The total area of the land identified in the planning proposal is 4.6ha and the proposed amendment to the minimum lot size requirement will increase the lot yield from 2 lots to approximately 24 lots (20% is set aside for road infrastructure etc.) However due to the existing tree canopy on the site, the final subdivision is expected to result in no more than 10 additional lots.

The submitted planning proposal is provided under Attachment 1.

SITE AND LOCALITY

The subject site is located in a rural residential area (R5 Large Lot Residential Zone) within Lake Albert. Surrounding land comprises of R1 General Residential, RE1 Public Recreation zoned land to the east, R5 Large Lot Residential zoned land to the north and south and RU1 Primary Production zoned land to the east. Lot sizes in the vicinity are on average 700sqm in the R1 Zone, 2ha in the R5 Zone and between 2ha and 34ha in the RU1 Zone.

KEY CONSIDERATIONS

1. Population growth and housing demand

The addition of dwellings to the housing stock is a major driver of population growth in the city, providing opportunities for households to relocate from other areas or new households to form locally. At a growth rate of 1.2% the population of Wagga Wagga will exceed 80,000 people in 2040, however the city must plan to grow to beyond 100,000 people. To accommodate a 2% population growth to 100,000 people and an additional 14,000 homes by 2040, 1,750 hectares of land is required if density rates continue at 8 dwellings per hectare.

The supply of residential land was last considered in 2013 as part of the Wagga Wagga Spatial Plan 2013-2043 that identified there was approximately 426 hectares of urban release area. At a density pattern of 8 dwellings per hectare this equates to an additional 3,500 dwellings. From this, current greenfield areas can accommodate 10 years supply of housing at the projected growth rate and 5 years supply at the aspirational growth rate of 2%.

2. Land use strategies underway and interim arrangements

Council officers are currently in the process of reviewing and developing new land use strategies for the city. One of the key priorities is to consider the location of future growth areas and to identify areas in the city that may be intensified through subdivision.

Noting that it will take some time to complete the above strategic work, landowners may as an interim arrangement lodge planning proposals to increase the development opportunities for their properties prior to the finalisation of the strategic work. Planning proposals will be considered on merit and the onus is on the proponents to provide Council with the necessary information to undertake assessments to determine if there is sufficient justification for a planning proposal to proceed, prior to the completion of the above strategic work.

3. Consistency with strategic directions

Even though the planning proposal is not supported by a local housing strategy endorsed by the Department of Planning and Environment, the Wagga Wagga Spatial Plan 2013/2043 that is endorsed by the Department of Planning and Environment identifies several approaches to addressing land demand for urban purposes in the city. This Plan encourages additional housing opportunities within existing urban areas where existing services and amenities are already provided. The proposal to rezone the land is based on site opportunities to optimize the use of available land that is currently serviced by public infrastructure and accessible to existing local community facilities, and is therefore considered generally consistent with the provisions of the Spatial Plan.

4. Justification for a reduced minimum lot size provision

The proponent provided the following justification for the proposed reduction in of minimum lot size provision:

“The land is located opposite existing R1 General Residential land and is surrounded by existing urban infrastructure that would enable servicing of land at greater densities than currently permitted by LEP2010. The proposal would provide a transition of lot size between existing general residential and other large lot residential precincts in the locality, while retaining a semi-rural backdrop to land adjacent Marshalls Creek.

There is a limited stock of available land to develop at the proposed density under the R5 zone, particularly as there have been no significant rezoning of this type of land since the implementation of LEP2010. A supply-demand analysis, provided as an attachment to this planning proposal, has indicated a significant shortfall of appropriately zoned and serviced rural “lifestyle” lots to meet ongoing demand and choice. Higher density development of the land would be a natural and more efficient use of land resources within a connected local environment.

The boundaries of the proposed minimum lot size amendment have been determined based on the following factors:

o Proximity and accessibility to existing urban services and facilities

o Appropriate separation distance from the Kooringal Sewerage Treatment Plant

o Land that would be available for large lot residential development in relation to existing native vegetation cover

o Sufficient land area to allow for flexibility in lot design taking in account site opportunities and constraints

o Minimising overland stormwater flow impact

o Other land further south of this proposed minimum lot size boundary has increasing limitations in respect of proximity to the Kooringal Sewerage Treatment Plant, existing fragmentation and subdivision pattern, other incompatible zonings (RU1), proximity to the existing creek, other potential flooding impacts and extent of native vegetation cover.”

Although the proposed amendment is not a direct result of a strategy identifying appropriate minimum lot sizes for the wider area, the proposed 0.15ha minimum lot size restriction is considered appropriate, and large enough, to enable any future subdivision of the site to be designed in a manner that minimises potential conflicts between rural residential properties and the adjoining agricultural land. It will allow the land to be subdivided in a manner that will be compatible with the existing character and amenity of the area. The new lot size provision will increase the development yield of the site to approximately 24 lots, however due to the existing tree canopy on the site, the final subdivision is expected to result in no more than 10 additional lots.

5. Natural hazards

The main recognised mechanism for flooding in Wagga Wagga is the Murrumbidgee River. Flooding can also be caused by local rainfall. Recent events have emphasised that numerous areas of Wagga Wagga are liable to overland flow flooding following intense rainfall. Overland flow paths are known to be problematic and difficult to assess and mapping is used to identify the extent, along with the areas subject to potential inundation.

The subject land is mapped as being impacted by overland flow and the Wagga Wagga Spatial Plan 2013 indicates that intensification not be supported on land affected by overland flow. Council recently commenced with the review the Major Overland Flood Study of 2011 (the source of the current mapping) and the main aim is to improve mapping tools and management strategies. The strategy will identify hazards to guide rezoning and identify areas that may be suitable for intensification. It will also identify areas where intensification are best to be avoided and make recommendations for areas where appropriate planning controls could be introduced to mitigate risk as a result of overland flow.

Until this work has been completed, it is the responsibility of applicants to address the impacts of overland flow flooding on any proposed development along with the broader context and to provide management solutions in an effort to address the inconsistency of the Spatial Plan.

The most recent mapping indicates the 1% AEP depths and levels across the site are less than 150 mm and as such the impact is considered minor. Accordingly, the off-site flood level impact is also viewed as relatively minor. Further consideration of the development concept would occur at development application stage and could include design measures to lessen the flood impact if required.

6. Infrastructure

The area is currently on pressure sewer. This is only sized for the existing lots and has no additional capacity. Depending on the lot yield, further subdivision would require the development to be serviced by a gravity sewer system discharging to a Sewer Pump Station. Construction of a sewer rising main would be required to a point where it can connect into Council’s existing system that will be able to carry the additional load.

There is no stormwater infrastructure in the area. Runoff is overland flow into roadside table drains with limited capacity. A Stormwater report would be required as part of the future development application to address how additional flow would be safely handled taking into account the existing overland flow flooding identified in the Major Overland Flow Flood Study 2015.

Kooringal Road is a key active travel route with the off road shared path running from Lake Albert Road through to Copland Street connecting residents to the city. The additional traffic flows generated by this proposal will be adequately accommodated within the existing public road environment, including the current arrangements with the Kooringal Road/Vincent Road intersection. No direct vehicular access to individual lots will be available off Kooringal Road. All vehicular access and egress arrangements will be established via a common internal road (either public or private). Appropriate intersection treatments can be established within both the Kooringal Road and Vincent Road reserves to ensure safe access and egress to the development area. The detail of this can be finalised as part of any future development application for subdivision.

Financial Implications

In accordance with Council’s 2018/19 Fees and Charges, a Minor LEP Amendment (medium complexity) attracts total application fees of $7,500. The proponent has paid this fee. There are no requirements to amend the DCP therefore the $2,000 fee for such action is not required to be paid in this instance.

Policy and Legislation

Environmental Planning and Assessment Act 1979.

Wagga Wagga Local Environmental Plan 2010.

Link to Strategic Plan

The Environment

Objective: We plan for the growth of the city

Outcome: We have sustainable urban development

Risk Management Issues for Council

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

Internal / External Consultation

A Councillor workshop was undertaken on 21 January 2019.

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

Proposed consultation methods are indicated in the table below.

Mail

Media

Community Engagement

Digital

Rates notices insert

Direct mail

Letterbox drop

Council news story

Council News advert

Media releases

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

Internal A cross-directorate internal referral occurred as part of the previous and similar planning proposal for the subject site.

External The previous and similar proposal was also forwarded to the Environmental Protection Agency for preliminary advice of the proximity of the site to the Kooringal Sewerage Plants. The following is a summary of the comments received with Council’s Response.

Comments	Comment	Council’s Response

Proximity of Kooringal Sewerage Treatment Plant	The proximity of the site to the STP may have impacts from noise, odour and drift from the aerated processes (and bioaerosol transport) from the STP. Dispersion is influenced by the type of treatment plant, quantity and composition of waste water treated, landscape features and climatic factors (including temp and wind speed/direction transport). Accordingly, the appropriate thresholds and separation distances from any STP are specific to the location and infrastructure. Modelling is an important tool to determine the relevant odour, noise and health-based assessment criteria. Given the absence of information provided, any proposed reduction in the minimum lot size leading to an increase in the potentially impacted community of residents near the STP is not considered to be in the public interest, and is not supported.	Additional work may be required as a condition of the Gateway Determination to demonstrate the appropriateness of the distance between the sewerage treatment plant and the subject land. It should be noted that distance complies with the minimum buffer distances as per the NSW Planning Circular E3 “Guidelines for Buffer Areas around Sewage Treatment Works” which recommends a minimum distance of 400 metres around sewage treatment plants.
Contamination	LEP Amendment application has not provided any evidence by a certified person that the land is not contaminated. Council’s Contaminated Land Management Policy would compel consideration by a certified person as a minimum standard of competency and investigation to be relied upon in assessing the suitability of the land for the smaller lot size and intensified residential purpose. This has not been provided.	It is considered that the potential impacts of Land Contamination are low and a detailed assessment may be undertaken as part of any future application for subdivision and/or land use change.
Overland flow	The management of overland flow does not just have implications for hazard reduction for site users but also for water quality management. The submission lacks information in this regard. If Council is to assess the impact of smaller lot sizes in this locality (rather than localised one-off matters such as that presented), it is necessary to consider the cumulative impact of such applications at a landscape catchment/watershed scale. The localised and limited information presented with the application has not had due regard to overland flow matters impacting the site or locality. Further detailed investigation of the impacts both on and off site would be required.	The site is not impacted by flooding but mapped as partly subject to overland flow flooding as a result of localised rain events. The most recent mapping indicates the 1% AEP depths and levels across the site are less than 150 mm are as such the impact is considered minor and could be address through engineering solutions as part of a future development application for subdivision.
Vegetation assessment	The vegetation assessment information provided is deficient and incorrect. Council must ensure proposals of this nature are accompanied by appropriately detailed expert information (and at a larger locality scale) to enable due consideration of the site and impacts of a proposal. In the absence of information to properly consider the environmental impacts of the intensified pressure on the site from a reduction in lot size, the proposal should not proceed.	The proposal to reduce the minimum lot size will have no significant impact on Biodiversity given the land has been bio-certified for the urban area and as such is not likely to affect any threatened species, population or ecological community, or its habitat. More information may be required as part of any future development application on the site. The potential yield may as a result of trees on the site, be reduced.

Attachments

1 ⇩.	LEP18/0014 - Council Officer's Assessment
2 ⇩.	LEP18/0014 - Addendum to Planning Proposal
3.	LEP18/0014 - Planning Proposal submitted by proponents - Provided under separate cover

Report submitted to the Ordinary Meeting of Council on Monday 25 February 2019. RP-5

RP-5 Financial Performance Report as at 31 January 2019

Author: Carolyn Rodney

Director: Natalie Te Pohe

Summary:

This report is for Council to consider and approve the proposed 2018/19 budget variations required to manage the 2018/19 budget and Long Term Financial Plan, and details Council’s external investments and performance as at 31 January 2019.

Recommendation

That Council:

a approve the proposed 2018/19 budget variations for the month ended 31 January 2019 and note the balanced budget position as presented in this report

b provide financial assistance of the following amounts in accordance with Section 356 of the Local Government Act 1993:

1) Southern Cross Austereo $ 80.00

2) Wagga Wagga Baptist Facilities Inc. $ 250.00

c 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

d note details of the external investments as at 31 January 2019 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 January 2019. Proposed budget variations are detailed in this report for Council’s consideration and adoption.

Council has experienced a positive monthly investment performance for the month of January, when compared to budget. This is mainly due to a higher than anticipated portfolio balance and strong performance of Councils Managed Fund and Floating Rate Notes.

Key Performance Indicators

OPERATING INCOME

Total operating income is 55% of approved budget, which is tracking close to budget for the end of January (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 79%.

OPERATING EXPENSES

Total operating expenditure is 56% of approved budget and is tracking on budget for the full financial year.

CAPITAL INCOME

Total capital income is 16% 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 31% of approved budget. Further analysis of the capital works program and revised timing of projects is currently underway and is planned to be reported to Council in the near future.

WAGGA WAGGA CITY COUNCIL STATEMENT OF FINANCIAL PERFORMANCE 1 JULY 2018 TO 31 JANUARY 2019
CONSOLIDATED STATEMENT
	ORIGINAL BUDGET 2018/19	BUDGET ADJ 2018/19	APPROVED BUDGET 2018/19	YTD ACTUAL EXCL COMMT'S 2018/19	COMMT'S 2018/19	YTD ACTUAL + COMMT'S 2018/19	YTD % OF BUD
Revenue
Rates & Annual Charges	(66,609,093)	0	(66,609,093)	(39,645,136)	0	(39,645,136)	60%
User Charges & Fees	(26,844,544)	150,317	(26,694,227)	(14,744,776)	0	(14,744,776)	55%
Interest & Investment Revenue	(2,917,452)	(764,199)	(3,681,651)	(2,325,342)	0	(2,325,342)	63%
Other Revenues	(2,983,104)	(332,402)	(3,315,506)	(2,247,266)	0	(2,247,266)	68%
Operating Grants & Contributions	(13,284,867)	(1,672,549)	(14,957,415)	(4,762,550)	0	(4,762,550)	32%
Capital Grants & Contributions	(36,517,290)	(17,894,522)	(54,411,813)	(8,977,885)	0	(8,977,885)	16%
Total Revenue	(149,156,350)	(20,513,355)	(169,669,705)	(72,702,956)	0	(72,702,956)	43%

Expenses
Employee Benefits & On-Costs	44,786,608	228,345	45,014,953	23,906,761	10,323	23,917,084	53%
Borrowing Costs	3,752,580	(121,277)	3,631,304	1,806,971	0	1,806,971	50%
Materials & Contracts	32,384,231	6,314,359	38,698,590	17,942,288	3,187,102	21,129,390	55%
Depreciation & Amortisation	35,418,997	0	35,418,997	20,661,081	0	20,661,081	58%
Other Expenses	12,125,204	(2,439,984)	9,685,220	6,208,230	104,792	6,313,022	65%
Total Expenses	128,467,621	3,981,443	132,449,064	70,525,331	3,302,217	73,827,548	56%

Net Operating (Profit)/Loss	(20,688,729)	(16,531,912)	(37,220,641)	(2,177,625)	3,302,217	1,124,592

Net Operating (Profit)/Loss before Capital Grants & Contributions	15,828,561	1,362,611	17,191,172	6,800,260	3,302,217	10,102,477

Capital / Reserve Movements
Capital Exp - Renewals	33,460,752	12,102,957	53,183,709	10,601,410	14,552,805	25,154,215	47%
Capital Exp - New Projects	32,626,087	18,244,231	50,870,317	8,228,059	2,313,755	10,541,815	21%
Capital Exp - Project Concepts	23,554,733	(2,064,214)	13,870,519	44,216	32,718	76,935	1%
Loan Repayments	3,129,777	(225,924)	2,903,853	1,693,914	0	1,693,914	58%
New Loan Borrowings	(6,108,672)	1,755,867	(4,352,805)	0	0	0	0%
Sale of Assets	(952,795)	(2,701,703)	(3,654,498)	(501,288)	0	(501,288)	14%
Net Movements Reserves	(29,602,157)	(10,579,301)	(40,181,457)	0	0	0	0%
Total Cap/Res Movements	56,107,727	16,531,912	72,639,638	20,066,313	16,899,278	36,965,591

	ORIGINAL BUDGET 2018/19	BUDGET ADJ 2018/19	APPROVED BUDGET 2018/19	YTD ACTUAL EXCL COMMT'S 2018/19	COMMT'S 2018/19	YTD ACTUAL + COMMT'S 2018/19	YTD % OF BUD
Net Result after Depreciation	35,418,997	0	35,418,997	17,888,687	20,201,495	38,090,182

Add back Depreciation Expense	35,418,997	0	35,418,997	20,661,081	0	20,661,081	58%

Cash Budget (Surplus)/Deficit	0	0	0	(2,772,394)	20,201,495	17,429,101

Revised Budget Result - Surplus/(Deficit)

$’000s

Original 2018/19 Budget Result as adopted by Council

Total Budget Variations approved to date

Budget variations for January 2019

Proposed revised budget result for 31 January 2019

The proposed Budget Variations to 31 January 2019 are listed below:

*Budget Variation*	*Amount*	*Funding Source*	*Net Impact* *Fav/ (Unfav)*
*1 – Community Leadership and Collaboration*
Open Space Barton Ave, Lloyd - Land Acquisition	$182K	Section 7.11 Reserve ($182K)
Funds are required for the acquisition of 3,908m² of land on Barton Avenue, Lloyd to be zoned as RE1 (public recreation) land. This open space was included in the Recreation Open Space and Community Strategy and the draft Local Infrastructure Contributions Plan 2018. The current Section 94 Plan 2006 – 2019 has funds available under Project Works and it is proposed to use the Section 7.11 Reserve as the funding source. Estimated Completion Date: 2018/19
*4 – Community Place and Identity*
Civic Theatre Moving Stage Lights	$59K	Civic Theatre Technical Reserve ($59K)	Nil
Funds are required for the addition of six permanent ‘moving’ lights over the stage at the Civic Theatre. The addition of these lights will ensure the Theatre continues to deliver the service level required by hirers and event organisers, ensuring quality live performances for theatre patrons and to encourage the repeat booking of the venue for future events. Most theatres have these lights now as a baseline to present contemporary, dynamic light shows to support live music, dance and concert style live events. It is proposed to fund the purchase of these lights from the Civic Theatre Technical Reserve. Estimated Completion Date: 2018/19
*5 – The Environment*
Bolton Park Stadium Lighting Upgrade	$15K	Internal Loans Reserve ($15K)	Nil
Additional funds are required for the Bolton Park Stadium lighting upgrade as part of the Energy Savings Project. This is due to the quoted prices for the work being higher than anticipated. The existing project budget is currently funded from an internal loan with a two year payback from electricity savings. It is proposed to extend the internal loan for a further year to fund the additional $15K and use the third year of electricity savings that were originally going to Council’s bottom line, to pay back the Internal Loans Reserve. The total proposed project cost will now be $44,476. Estimated Completion Date: 2018/19
Regional Roads Maintenance Lines and Signs Maintenance	$23K $8K	RMS Block Grant ($31K)	Nil
Council have been advised that the RMS Block Grant allocations for 2018/19 are marginally higher than the originally budgeted amounts. It is proposed to adjust the relevant income and expense budgets accordingly for Regional Roads Maintenance and Lines and Signs Maintenance programs.
				Nil

Current Restrictions

RESERVES SUMMARY
31 JANUARY 2019
	CLOSING BALANCE 2017/18	ADOPTED RESERVE TRANSFERS 2018/19	BUDGET VARIATIONS APPROVED UP TO COUNCIL MEETING 29.01.19	PROPOSED CHANGES for Council Resolution	REVISED BALANCE

Externally Restricted
Developer Contributions - Sect 7.11	(19,959,750)	7,405,683	(461,806)	181,655	(12,834,217)
Developer Contributions - Sect 7.12	(465,272)	358,500	112,629		5,857
Developer Contributions – S/Water DSP S64	(5,478,298)	500,000	(233,653)		(5,211,951)
Sewer Fund	(26,204,212)	4,267,364	2,926,010		(19,010,838)
Solid Waste	(20,184,154)	9,600,364	1,301,703		(9,282,086)
Specific Purpose Grants	(3,519,384)	0	3,519,384		0
SRV Levee	(2,847,382)	1,807,667	970,802		(68,914)
Stormwater Levy	(3,167,296)	162,032	(97,159)		(3,102,423)
Total Externally Restricted	(81,825,747)	24,101,610	8,037,910	181,655	(49,504,571)

Internally Restricted
Airport	(63,685)	(158,452)	(330,776)		(552,913)
Art Gallery	(49,209)	13,262	0		(35,947)
Ashmont Community Facility	(6,000)	(1,500)	0		(7,500)
Bridge Replacement	(201,972)	(100,000)	0		(301,972)
CBD Carparking Facilities	(863,695)	160,302	50,801		(652,592)
CCTV	(74,476)	(10,000)	0		(84,476)
Cemetery Perpetual	(65,479)	(129,379)	51,958		(142,900)
Cemetery	(452,507)	420	139,581		(312,506)
Civic Theatre Operating	0	(55,000)	32,812		(22,188)
Civic Theatre Technical Infrastructure	(92,585)	(50,000)	4,911	58,800	(78,875)
Civil Projects	(155,883)	0	0		(155,883)
Community Amenities	(76,763)	0	0		(76,763)
Community Works	(61,888)	(59,720)	0		(121,608)
Council Election	(255,952)	(76,333)	44,045		(288,240)
Emergency Events	(220,160)	0	29,000		(191,160)
Employee Leave Entitlements	(3,322,780)	0	0		(3,322,780)
Environmental Conservation	(131,351)	20,295	0		(111,056)
Estella Community Centre	(230,992)	178,519	0		(52,473)
Event Attraction Reserve	0	0	(4,421)		(4,421)
Family Day Care	(320,364)	75,366	(1,556)		(246,555)
Fit for the Future	(5,340,222)	4,444,014	(558,342)		(1,454,550)
Generic Projects Saving	(1,056,917)	150,000	115,306		(791,611)
Glenfield Community Centre	(19,704)	(2,000)	0		(21,704)
Grants Commission	(5,199,163)	0	0		(5,199,163)
Grassroots Cricket	(70,992)	0	0		(70,992)
Gravel Pit Restoration	(767,509)	0	0		(767,509)

RESERVES SUMMARY
31 JANUARY 2019
	CLOSING BALANCE 2017/18	ADOPTED RESERVE TRANSFERS 2018/19	BUDGET VARIATIONS APPROVED UP TO COUNCIL MEETING 29.01.19	PROPOSED CHANGES for Council Resolution	REVISED BALANCE
Gurwood Street Property	(50,454)	0	0		(50,454)
Information Services	(369,113)	77,858	285,000		(6,256)
Infrastructure Replacement	(193,634)	(68,109)	(62,934)		(324,677)
Insurance Variations	(28,644)	0	(71,603)		(100,246)
Internal Loans	(518,505)	(631,470)	528,554	14,944	(606,477)
Lake Albert Improvements	(62,349)	(21,563)	64,054		(19,858)
LEP Preparation	(3,895)	0	1,350		(2,545)
Livestock Marketing Centre	(5,724,767)	(1,146,762)	1,165,260		(5,706,270)
Museum Acquisitions	(39,378)	0	0		(39,378)
Oasis Building Renewal	(209,851)	(85,379)	3,000		(292,230)
Oasis Plant	(1,140,543)	390,000	100,000		(650,543)
Parks & Recreation Projects	(79,648)	49,500	0		(30,148)
Pedestrian River Crossing	(10,775)	0	10,775		0
Plant Replacement	(3,935,062)	253,958	1,043,434		(2,637,671)
Playground Equipment Replacement	(164,784)	69,494	0		(95,290)
Project Carryovers	(2,006,338)	402,808	1,585,155		(18,376)
Public Art	(208,754)	30,300	64,997		(113,457)
Robertson Oval Redevelopment	(92,151)	0	0		(92,151)
Senior Citizens Centre	(15,627)	(2,000)	0		(17,627)
Sister Cities	(36,328)	(10,000)	0		(46,328)
Stormwater Drainage	(180,242)	0	22,000		(158,242)
Strategic Real Property	(475,000)	401,305	(395,655)		(469,350)
Street Lighting Replacement	(74,755)	0	18,206		(56,549)
Subdivision Tree Planting	(582,108)	40,000	0		(542,108)
Sustainable Energy	(588,983)	95,000	259,414		(234,569)
Traffic Committee	(21,930)	0	20,138		(1,792)
Unexpended External Loans	(841,521)	0	841,521		0
Workers Compensation	(40,000)	0	(53,251)		(93,251)
Total Internally Restricted	(36,795,390)	4,244,732	5,002,731	73,744	(27,474,183)

Total Restricted	(118,621,137)	28,346,342	13,040,641	255,399	(76,978,754)

Section 356 Financial Assistance Requests

Two Section 356 financial assistance requests have been received for consideration at the 25 February 2019 Ordinary Council meeting.

Details of the current financial assistance requests are shown below:

· Southern Cross Austereo – Easter Community Event $80

Southern Cross Austereo is seeking Council’s consideration for financial assistance by the waiving of the hire fees for the Victory Memorial Gardens to stage a Community Easter event on the 20 April 2019, being the “Triple M Easter Egg hunt”.

Southern Cross Austereo in their attached letter note:

“Triple M Riverina provide an annual free community event for Wagga on the Saturday of the Easter Weekend. We organize, source and broadcast an Easter Egg hunt with approx. 8000 chocolate eggs for the children of Wagga. Further to the above booking for the Victory Memorial Gardens, I would like to request to have the $80 hire fee waived.”

Council has not provided any financial assistance to the above organisation in the last 12 months.

The above request aligns with Council’s Strategic Plan “Community Place and Identity” – Outcome: We have opportunities to connect with others.

· Wagga Wagga Baptist Facilities Inc. – Gregadoo Waste Fees Subsidy $250

Wagga Wagga Baptist Facilities on behalf of the inter church group of Wagga Wagga is seeking Council’s consideration for financial assistance by the waiving of the Gregadoo Waste Management fees for a single event being the staging of their annual Monster Garage Sale. The Monster Garage sale is scheduled for the 23 February 2019.

Generally, the church group makes an application for a subsidy for this annual event when applications for subsidies are called for in May each year. However, even though the application is being made now, Council’s POL 078 Financial Assistance Policy allows for the request to be considered as not all the funds have yet been committed.

Council in the last three years has provided $250 each year for the Monster Garage Event whereby proceeds from the annual garage sale support the charity programs undertaken by the local churches.

The above request aligns with Council’s Strategic Plan “We are active Community members “ – Outcome: We recognise we all have a role to play.

It is noted that a specific budget of $10,300 is available to fund waste subsidy requests from community groups that meet the criteria outlined in Council’s Policy. This allocation is funded from the Solid Waste Reserve. At the 9 July 2018 Council meeting, RP-3 Council resolved to fund $4,000 to 8 community groups. This leaves a current budget available of $6,300.

If the Wagga Wagga Churches request is approved a balance of $6,050 will remain available for any further 2018/19 community group subsidy applications.

Budget

The Section 356 financial assistance budget for the 2018/19 financial year is $50,256, of which $41,689 is already committed in the adopted 2018/19 Delivery and Operational Plan.

From the $8,567 that was initially remaining, a balance of $5,000 (includes the additional budget vote of $3,346 approved at the January 29 2019 Council Meeting Council Officers Report RP5) is currently available.

The proposed financial assistance of $80 included in this report if approved would leave $4,920 available for the remainder of this financial year.

Unallocated balance of S356 fee waiver financial assistance budget 2018/19	$5,000
Southern Cross Austereo – Easter Community Event	($80)
Total Section 356 Financial Assistance Requests - 29 January 2019 Council Meeting	($80)
Balance of Section 356 fee waiver financial assistance budget for the remainder of the 2018/19 Financial Year	$4,920

As noted earlier the subsidy request of $250 towards waste disposal from the Wagga Wagga Baptist Facilities is proposed to be funded from the Solid Waste Reserve.

Investment Summary as at 31 January 2019

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

Institution	Rating	Closing Balance Invested 31/12/2018 $	Closing Balance Invested 31/01/2019 $	January EOM Current Yield %	January EOM % of Portfolio	Investment Date	Maturity Date	Term (mths)
*Short Term Deposits*
AMP	A	2,000,000	2,000,000	2.95%	1.45%	1/06/2018	31/05/2019	12
AMP	A	1,000,000	0	0.00%	0.00%	5/06/2018	2/01/2019	7
AMP	A	1,000,000	1,000,000	2.95%	0.72%	17/05/2018	17/05/2019	12
Police Credit Union	NR	2,000,000	2,000,000	2.86%	1.45%	28/05/2018	28/05/2019	12
AMP	A	2,000,000	0	0.00%	0.00%	29/05/2018	24/01/2019	8
Westpac	AA-	1,000,000	1,000,000	2.80%	0.72%	28/06/2018	28/06/2019	12
Australian Military Bank	NR	1,000,000	1,000,000	3.01%	0.72%	16/07/2018	16/07/2019	12
Bankwest	AA-	2,000,000	2,000,000	2.76%	1.45%	31/08/2018	23/04/2019	8
Australian Military Bank	NR	1,000,000	1,000,000	2.86%	0.72%	7/09/2018	8/07/2019	10
*Total Short Term Deposits*		13,000,000	10,000,000	2.88%	7.25%
*At Call Accounts*
NAB	AA-	1,894,616	875,062	1.50%	0.63%	N/A	N/A	N/A
NAB	AA-	10,794,059	13,314,496	2.19%	9.65%	N/A	N/A	N/A
*Total At Call Accounts*		12,688,675	14,189,558	2.15%	10.28%
*Medium Term Deposits*
RaboBank	A+	1,000,000	1,000,000	3.16%	0.72%	5/06/2017	6/06/2022	60
ING Bank	A	3,000,000	3,000,000	2.75%	2.17%	24/08/2017	26/08/2019	24
ME Bank	BBB	2,000,000	2,000,000	4.28%	1.45%	2/09/2014	2/09/2019	60
Rabobank	A+	1,000,000	1,000,000	4.10%	0.72%	5/12/2014	5/12/2019	60
BOQ	BBB+	2,000,000	2,000,000	3.10%	1.45%	7/07/2017	7/07/2020	36
AMP	A	2,000,000	2,000,000	3.00%	1.45%	2/08/2018	3/02/2020	18
Newcastle Permanent	BBB	1,000,000	1,000,000	3.00%	0.72%	12/08/2016	12/08/2019	36
Rabobank	A+	1,000,000	1,000,000	3.20%	0.72%	25/08/2016	25/08/2021	60
Newcastle Permanent	BBB	1,000,000	1,000,000	3.00%	0.72%	31/08/2016	30/08/2019	36
Newcastle Permanent	BBB	2,000,000	2,000,000	3.00%	1.45%	10/02/2017	11/02/2019	24
Westpac	AA-	3,000,000	3,000,000	3.10%	2.17%	10/03/2017	10/03/2022	60
Auswide	BBB-	2,000,000	2,000,000	2.95%	1.45%	5/10/2018	6/10/2020	24
ING Bank	A	1,000,000	1,000,000	2.92%	0.72%	16/10/2017	16/10/2019	24
ING Bank	A	2,000,000	2,000,000	2.92%	1.45%	6/11/2017	6/11/2019	24
BOQ	BBB+	2,000,000	2,000,000	3.35%	1.45%	3/01/2018	4/01/2022	48
ING Bank	A	1,000,000	1,000,000	2.80%	0.72%	5/01/2018	6/01/2020	24
Police Credit Union	NR	2,000,000	2,000,000	3.05%	1.45%	29/10/2018	29/10/2020	24
Australian Military Bank	NR	1,000,000	1,000,000	2.95%	0.72%	29/05/2018	29/05/2020	24
BOQ	BBB+	1,000,000	1,000,000	3.50%	0.72%	1/06/2018	1/06/2022	48
Westpac	AA-	2,000,000	2,000,000	3.02%	1.45%	28/06/2018	28/06/2021	36
Westpac	AA-	2,000,000	2,000,000	2.88%	1.45%	28/06/2018	29/06/2020	24
ING Bank	A	2,000,000	2,000,000	2.86%	1.45%	16/08/2018	17/08/2020	24
BOQ	BBB+	3,000,000	3,000,000	3.25%	2.17%	28/08/2018	29/08/2022	48
ING Bank	A	3,000,000	3,000,000	2.85%	2.17%	30/08/2018	14/09/2020	24
P&N Bank	BBB	1,000,000	1,000,000	3.10%	0.72%	16/10/2018	18/10/2021	36
Westpac	AA-	2,000,000	2,000,000	3.05%	1.45%	13/11/2018	15/11/2021	36
Police Credit Union	NR	1,000,000	1,000,000	3.07%	0.72%	20/11/2018	20/11/2020	24
P&N Bank	BBB	1,000,000	1,000,000	3.30%	0.72%	20/11/2018	21/11/2022	48
Institution	Rating	Closing Balance Invested 31/12/2018 $	Closing Balance Invested 31/01/2019 $	January EOM Current Yield %	January EOM % of Portfolio	Investment Date	Maturity Date	Term (mths)
ING Bank	A	2,000,000	2,000,000	2.93%	1.45%	29/11/2018	30/11/2020	24
NAB	AA-	2,000,000	2,000,000	3.01%	1.45%	30/11/2018	30/11/2021	36
Bendigo-Adelaide	BBB+	1,000,000	1,000,000	3.25%	0.72%	30/11/2018	30/11/2022	48
CUA	BBB	2,000,000	2,000,000	3.02%	1.45%	5/12/2018	7/12/2020	24
*Total Medium Term Deposits*		55,000,000	55,000,000	3.09%	39.86%
*Floating Rate Notes - Senior Debt*
BOQ	BBB+	2,007,200	2,012,400	BBSW + 110	1.46%	5/08/2014	24/06/2019	58
Bendigo-Adelaide	BBB+	1,007,286	1,010,384	BBSW + 110	0.73%	18/08/2015	18/08/2020	60
Bendigo-Adelaide	BBB+	1,007,286	1,010,384	BBSW + 110	0.73%	28/09/2015	18/08/2020	59
Suncorp-Metway	A+	1,015,335	0	0.00%	0.00%	20/10/2015	20/10/2020	60
Rabobank	A+	2,034,750	0	0.00%	0.00%	4/03/2016	4/03/2021	60
Newcastle Permanent	BBB	1,002,416	1,005,075	BBSW + 160	0.73%	22/03/2016	22/03/2019	36
CUA	BBB	2,003,786	2,008,970	BBSW + 160	1.46%	1/04/2016	1/04/2019	36
ANZ	AA-	1,008,416	0	0.00%	0.00%	7/04/2016	7/04/2021	60
Suncorp-Metway	A+	1,020,434	1,014,473	BBSW + 138	0.74%	21/04/2016	12/04/2021	60
AMP	A	1,009,146	1,012,184	BBSW + 135	0.73%	24/05/2016	24/05/2021	60
Westpac	AA-	1,010,665	0	0.00%	0.00%	3/06/2016	3/06/2021	60
CBA	AA-	1,016,675	0	0.00%	0.00%	12/07/2016	12/07/2021	60
ANZ	AA-	2,022,510	2,029,486	BBSW + 113	1.47%	16/08/2016	16/08/2021	60
BOQ	BBB+	1,514,484	1,507,433	BBSW + 117	1.09%	26/10/2016	26/10/2020	48
NAB	AA-	1,011,075	1,006,994	BBSW + 105	0.73%	21/10/2016	21/10/2021	60
Teachers Mutual	BBB	1,512,429	1,503,893	BBSW + 140	1.09%	28/10/2016	28/10/2019	36
Bendigo-Adelaide	BBB+	1,006,906	0	0.00%	0.00%	21/11/2016	21/02/2020	39
Westpac	AA-	1,011,125	1,006,944	BBSW + 111	0.73%	7/02/2017	7/02/2022	60
ANZ	AA-	1,005,046	1,008,554	BBSW + 100	0.73%	7/03/2017	7/03/2022	60
CUA	BBB	753,245	755,508	BBSW + 130	0.55%	20/03/2017	20/03/2020	36
Heritage Bank	BBB+	604,648	601,665	BBSW + 130	0.44%	4/05/2017	4/05/2020	36
Teachers Mutual	BBB	1,004,316	1,007,164	BBSW + 142	0.73%	29/06/2017	29/06/2020	36
NAB	AA-	2,996,811	3,006,675	BBSW + 90	2.18%	5/07/2017	5/07/2022	60
Suncorp-Metway	A+	1,002,976	1,006,395	BBSW + 97	0.73%	16/08/2017	16/08/2022	60
Westpac	AA-	2,000,374	1,992,432	BBSW + 81	1.44%	30/10/2017	27/10/2022	60
ME Bank	BBB	1,508,499	1,500,939	BBSW + 125	1.09%	9/11/2017	9/11/2020	36
NAB	AA-	1,992,554	1,986,214	BBSW + 80	1.44%	10/11/2017	10/02/2023	63
ANZ	AA-	1,497,851	1,491,879	BBSW + 77	1.08%	18/01/2018	18/01/2023	60
Bendigo-Adelaide	BBB+	499,249	497,728	BBSW + 105	0.36%	25/01/2018	25/01/2023	60
Newcastle Permanent	BBB	1,500,401	1,490,831	BBSW + 140	1.08%	6/02/2018	6/02/2023	60
Westpac	AA-	1,991,094	1,998,732	BBSW + 83	1.45%	6/03/2018	6/03/2023	60
UBS	A+	2,000,374	2,001,410	BBSW + 90	1.45%	8/03/2018	8/03/2023	60
Heritage Bank	BBB+	1,400,892	1,405,103	BBSW + 123	1.02%	29/03/2018	29/03/2021	36
ME Bank	BBB	1,610,074	1,602,440	BBSW + 127	1.16%	17/04/2018	16/04/2021	36
ANZ	AA-	1,999,414	1,991,072	BBSW + 93	1.44%	9/05/2018	9/05/2023	60
NAB	AA-	1,997,814	2,004,130	BBSW + 90	1.45%	16/05/2018	16/05/2023	60
CBA	AA-	1,997,854	2,004,670	BBSW + 93	1.45%	16/08/2018	16/08/2023	60
Bank Australia	BBB	753,132	755,868	BBSW + 130	0.55%	30/08/2018	30/08/2021	36
CUA	BBB	601,010	602,735	BBSW + 125	0.44%	6/09/2018	6/09/2021	36
AMP	A	1,499,411	1,503,668	BBSW + 108	1.09%	10/09/2018	10/09/2021	36
NAB	AA-	1,991,134	1,997,912	BBSW + 93	1.45%	26/09/2018	26/09/2023	60
Bendigo-Adelaide	BBB+	1,004,060	1,000,058	BBSW + 101	0.72%	19/10/2018	19/01/2022	39
CBA	AA-	0	3,013,185	BBSW + 113	2.18%	11/01/2019	11/01/2024	60
Institution	Rating	Closing Balance Invested 31/12/2018 $	Closing Balance Invested 31/01/2019 $	January EOM Current Yield %	January EOM % of Portfolio	Investment Date	Maturity Date	Term (mths)
Westpac	AA-	0	3,009,585	BBSW + 114	2.18%	24/01/2019	24/04/2024	63
*Total Floating Rate Notes - Senior Debt*		58,434,153	57,365,170		41.58%
*Managed Funds*
NSW TCorp	NR	1,371,497	1,412,214	2.97%	1.02%	17/03/2014	1/01/2024	117
*Total Managed Funds*		1,371,497	1,412,214	2.97%	1.02%
TOTAL CASH ASSETS, CASH EQUIVALENTS & INVESTMENTS		140,494,325	137,966,943		100.00%
LESS: RIVERINA REGIONAL LIBRARY (RRL) CASH AT BANK		4,062,501	3,857,814
TOTAL WWCC CASH ASSETS, CASH EQUIVALENTS & INVESTMENTS		136,431,824	134,109,129

Council’s investment portfolio is dominated by Term Deposits, equating to approximately 47% of the portfolio across a broad range of counterparties. Cash equates to 10%, with Floating Rate Notes (FRNs) around 42% 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 decreased from the previous month’s balance, down from $136.4M to $134.1M. This is reflective of a number of contract payments being made during the month.

MONTHLY INVESTMENT MOVEMENTS

Redemptions/Sales – Council redeemed the following investment securities during January 2019:

Institution and Type	Amount	Investment Term	Interest Rate	Comments
AMP Term Deposit	$1M	7 months	2.95%	This term deposit was redeemed on maturity and funds were utilised for cash flow purposes.
Suncorp Floating Rate Note	$1M	5 years	BBSW + 125	This floating rate note was sold prior to maturity and funds were reinvested in the new 5 year CBA FRN (see below). Council recognised a capital gain of $8,130.
ANZ Floating Rate Note	$1M	5 years	BBSW + 118	This floating rate note was sold prior to maturity and funds were reinvested in the new 5 year CBA FRN (see below). Council recognised a capital gain of $8,460.
Westpac Floating Rate Note	$1M	5 years	BBSW + 117	This floating rate note was sold prior to maturity and funds were reinvested in the new 5 year CBA FRN (see below). Council recognised a capital gain of $8,190.
Rabobank Floating Rate Note	$2M	5 years	BBSW + 150	This floating rate note was sold prior to maturity and funds were reinvested in the new 5.25 year Westpac FRN (see below). Council recognised a capital gain of $28,520.
CBA Floating Rate Note	$1M	5 years	BBSW + 121	This floating rate note was sold prior to maturity and funds were reinvested in the new 5.25 year Westpac FRN (see below). Council recognised a capital gain of $9,780.

Bendigo Bank Floating Rate Note	$1M	3.25 years	BBSW + 110	This floating rate note was sold prior to maturity and funds were reinvested in the new 5.25 year Westpac FRN (see below). Council recognised a capital gain of $3,600.
AMP Term Deposit	$2M	8 months	2.95%	This term deposit was redeemed on maturity and funds were utilised for cash flow purposes.

New Investments – Council purchased the following investment securities during January 2019:

Institution and Type	Amount	Investment Term	Interest Rate	Comments
CBA Floating Rate Note	$3M	5 years	BBSW + 113	Council’s independent Financial Advisor advised this Floating Rate Note represented good value with a major bank.
Westpac Floating Rate Note	$3M	5.25 years	BBSW + 114	Council’s independent Financial Advisor advised this Floating Rate Note represented good value with a major bank.

Institution and Type

Amount

Investment

Term

Interest

Rate

Comments

CBA Floating Rate Note

$3M

5 years

BBSW + 113

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

Westpac Floating Rate Note

$3M

5.25 years

BBSW + 114

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

Rollovers – Council did not rollover any investment securities during January 2019.

MONTHLY PERFORMANCE

Interest/growth/capital gains for the month totalled $403,821, which compares favourably with the budget for the period of $291,629, outperforming budget for the month by $112,192.

Council’s T-Corp Long Term Growth Fund contributed to the overall performance for the month of January, as domestic and international markets started the year strongly. The fund was up 2.97% for the month of January and has returned 8.45% per annum since the original investment in March 2014. Overall, the Growth Fund remains Council’s best performing asset over 3 years by a considerable margin.

It is important to note Council’s investment portfolio balance 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. Further analysis of the capital works program and revised timing of projects is currently underway and is planned to be reported to Council separately. This will result in Councils investment portfolio continuing to maintain a higher balance until these projects commence or advance further.

The longer-dated deposits in the portfolio, particularly those locked in above 3.50%, have previously anchored Council’s portfolio performance. It should be noted that the portfolio now only includes three investments yielding above 3.50%. 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* (1.94%), Council’s investment portfolio returned 3.60% (annualised) for January. Cash and At-Call accounts returned 2.15% (annualised) for this period. These funds are utilised for daily cash flow management and need to be available to meet operating and contractual payments as they fall due.

Council’s Independent Financial Advisor, Imperium Markets, outlined that with regards to its total investment portfolio, Wagga Wagga City Council remains one of the best performing local government entities in the country. It is proposed that representatives from Imperium Markets present to Council again this year, with dates yet to be arranged.

* 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

Section 625 - How may councils invest?

Local Government (General) Regulation 2005

Section 212 - Reports on council investments

Link to Strategic Plan

Community Leadership and Collaboration

Objective: We have strong leadership

Outcome: We are accountable and transparent

Risk Management Issues for Council

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

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

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

Internal / External Consultation

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

All relevant areas within the Council have consulted with the Finance Division in regards to the budget variations listed in this report.

The Finance Division has consulted with relevant external parties to confirm Council’s investment portfolio balances.

Attachments

1 ⇩.	Section 356 Financial Assistanec Request - Southern Cross Austereo Easter Community Event
2 ⇩.	Section 356 Financial Assistance Request - Wagga Wagga Baptist Facilities Inc

Report submitted to the Ordinary Meeting of Council on Monday 25 February 2019. RP-8

RP-8 LOCAL GOVERNMENT ELECTIONS - SEPTEMBER 2020

Author: Ingrid Hensley

General Manager: Peter Thompson

Summary:

Council is required by the Local Government Act 1993 (the Act) to resolve the conduct of local government elections. The next local government election will occur on 12 September 2020.

Under section 296AA of the Act, councils must make a decision on how their September 2020 ordinary elections are to be administered, no later than 11 March 2019.

An IPART review of the costs of conducting local government elections in NSW was recently announced and amendments extending the time for councils to make a decision on the administration of their elections will be proposed after the March NSW State Election.

Recommendation

That Council:

a pursuant to s. 296(2) and (3) of the Local Government Act 1993 (NSW) (“the Act”) that an election arrangement be entered into by contract for the Electoral Commissioner to administer all elections of the Council

b pursuant to s. 296(2) and (3) of the Act, as applied and modified by s. 18, that a council poll arrangement be entered into by contract for the Electoral Commissioner to administer all council polls of the Council

c pursuant to s. 296(2) and (3) of the Act, as applied and modified by s. 18, that a constitutional referendum arrangement be entered into by contract for the Electoral Commissioner to administer all constitutional referenda of the Council

Report

Legislative changes in 2011 removed the requirement that the NSW Electoral Commission (NSWEC) administer Local Government Elections. Therefore, Councils are able to choose the method of administration of council elections, polls and referenda.

Section 296 of the Local Government Act 1993 (the Act) provides that council elections may be administered by the General Manager of the council concerned. The Act also provides that a council may, 18 months prior to an ordinary election (being 11 March 2019), resolve to enter into a contract or make arrangements with the Electoral Commissioner to administer all elections for the council.

The next Ordinary Local Government Election is scheduled for 12 September 2020.

Therefore, if Council decides to engage the services of the NSWEC to administer this election, a resolution to this effect must be made no later than 11 March 2019.

If Council does not resolve to engage the NSWEC by 11 March 2019, Council’s General Manager will be responsible for administering the 2020 Ordinary Local Government Elections.

If such a contract is entered into, the Electoral Commissioner is to administer all the elections, constitutional referendums and polls of the council until the conclusion of the following ordinary election.

Councils may now also decide to if they wish to engage the NSWEC to conduct their individual elections (other than ordinary elections), referendums and polls at any time.

In order for the Council resolution to be effective, the NSWEC has provided recommended wording, which has been distributed by the Office of Local Government (OLG) and which has been used in the recommendation above.

However, as Council has the ability to choose the method of administration of elections, polls and referenda’s, a number of options have been considered, as outlined below.

Option One – Election to be administered by the NSW Electoral Commission

This option involves Council outsourcing the administration of the entire election. This would mean the Electoral Commissioner, not the General Manager, would hold the responsibilities listed under Option 2.

The NSWEC has extensive expertise and experience in conducting elections and has successfully conducted all previous Local Government elections and referendums for Wagga Wagga City Council. Council have engaged the Electoral Commissioner to administer the previous election due to:

· The integrity of the Electoral Commission’s systems and processes, including its vote counting software;

· The experience of the Commissioner and their staff in conducting State and Council elections including the resolution of complaints and disputes;

· The “arm’s length” probity considerations of not having the General Manager or Council’s administrative staff directly involved in the administration of the election process; and

· Certainty of the availability of polling places, polling staff and election materials.

If a council resolves that the NSWEC will administer their election, it must enter into an arrangement to do this with the NSWEC at least 15 months before the election, in this case by 11 June 2019. The impact of the IPART review on this timing is further considered within this Report.

Any contract made will be automatically terminated 18 months before the 2024 Local Government Election, or on reasonable notice by either the Council or the NSWEC

(section 296(6) and (7) of the Act).

Option Two – Election to be administered by the General Manager

The OLG has release Guidelines under s 23A of the Act to assist Councils and general managers to understand their level of responsibility and accountability if they choose to administer their own election.

Administration of an ordinary election is highly complex, requiring transparent and fair processes to comply with legislative and other requirements.

If Council administers the election, the General Manager would be responsible for a range of functions, including the following:

· Conducing the election;

· Appointing the Returning Officer and substitute Returning Officer and managing that Office;

· Managing the relevant election costs, including determining fees payable to the Returning Officer, the substitute Returning Officer and electoral officials;

· Confirming the roll of non-resident owners of rateable land and the roll of occupiers and rate-paying lessees;

· Preparing a list of names of those on the residential roll, wo appeared to have not voted at the election, and forwarding that list to the Electoral Commissioner within 14 days (or longer if provided for in the Regulation) of the election;

· Appointing polling places;

· Preparing a Report for the Minister for Local Government on the conduct of each election;

· Appointing and training staff including polling place managers on how to conduct a count and how to determine formality of ballot papers;

· Developing procedures to be followed by electoral officials issuing pre-poll, declared institution, postal and election day votes;

· Preparing all necessary printed election materials;

· Obtaining all necessary election material for use in pre-poll and election day venues;

· Dealing with political parties, candidates and the public;

· Processing candidates’ nominations including acceptance of the deposit and conducting the draw for position of candidates on the ballot paper;

· Registering ‘how to vote’ material;

· Putting in place all necessary arrangements to enable pre-poll, declared institution, postal and election day voting including booking the appropriate venues;

· Ensuring delivery and collection of election materials to and from pre-poll and election day polling venues;

· Conducting the ‘check count’ of the votes and the distribution of preferences declaring the election;

· Arranging storage (and ultimate destruction) of ballot papers and voting-related materials and data for the statutory period of 18 months;

· Ensuring the security of ballot papers and voting-related materials and data (including with respect to potential cyber attacks); and

· Conducting a countback election, if required in the first 18 months following the ordinary election.

The option of Council administering its own elections, polls and referenda is not recommended as Council has no experience or capacity to administer elections. Further, the Electoral Commissioner is already required to undertake some tasks in relation to non-residential roll requirements.

Specific information must be included in the resolution for councils resolving to administer the elections themselves.

Option Three - Electoral Services provider

The option of having an electoral services provider, other than the NSWEC, administer elections, polls and referenda on Council’s behalf has been considered. This would require Council to undergo a competitive tendering process. From research conducted there appears to be one commercial electoral provider in the market, although there are other companies who provide electoral services for company boards of directors and the like. The cost implications are considered within this Report.

While the Act permits the use of such commercial electoral services providers, the general manager will still retain overall responsibility for the administration of the elections.

Section 55 of the Act exempts councils from tendering when entering into a contract or arrangement for the NSWEC to administer the council’s elections, referendums and polls. This exemption does not apply to contracts or arrangements with any other service provider. As the amount involved in conducting council elections can be significant it is important to ensure that any commercial organisation is providing value for money. It is also important to ensure that as public funds are being expended, principles of openness, transparency and accountability are not compromised.

Consideration was given to the matters in assessing the use of an electoral service provider:

(a) Production of the non-residential rolls requires extensive collaboration with NSWEC, especially during an election period. Working with a second external organisation during this period would require additional effort and resources from the Council as well as having the potential to confuse electors.

(b) Only a handful of councils have engaged non-NSWEC electoral services providers. The lack of information available on their performance does not allow for an informed comparison between them and the NSWEC.

(c) The NSWEC has a great deal of expertise and experience in conducting elections and has successfully conducted the Council’s past elections.

Under section 296(3)(b), where a council enters into an election arrangement with the NSWEC, the arrangement must be entered into no later than 15 months before the ordinary council elections.

It is recommended Council adopt the recommendation to engage the NSWEC to conduct all elections, council polls and constitutional referenda.

Financial Implications

Pricing

Costs estimates from a potential external provider have been identified, as set out in the confidential attachment. The following factors would impact those indicative pricings: increases in NSW Electoral Commission pay rates for Returning Officers, polling officials, and casual employees who work in Returning Officer support roles, introduced prior to the 2020 Elections; increases in payroll tax and any subsequent changes to the Act and the Regulation, implemented prior to the September 2020 NSW Local Government Elections.

Schedule 1 pricing represents the indicative total pricing for the Election, if the election is 100% outsourced to the external provider, with the General Manager being the “Election Manager”.

Schedule 2 items represent those elements of cost that Council could potentially apply and accrue as savings, by Council being responsible for provision of those specific elements of cost.

Council has requested pricing from the NSWEC for the administration of the 2020 ordinary election which, at the date of this Report, had not yet been received. On 16 January 2019 the NSWEC had previously advised it was their intention to being sending cost estimates for the conduct of the 2020 local government elections from 21 January 2019.

Notwithstanding this, the exact costs of engaging the NSWEC will not be known until after the election as the NSWEC is required to invoice on a cost recovery basis.

Election Reserve Fund

Council transfers $100,000 per annum into the Election Funding Reserve to cover the costs of Local Government elections.

Upon receiving a detailed cost estimate, future year expenditure estimates will be adjusted accordingly.

In addition, the current balance of the Election Reserve as at 30 June 2018 was $256K, with a further $188K budgeted to be transferred into the Reserve over the 2018/19, 2019/20 and 2020/21 financial years. This brings the Election Reserve up to $444K available for the September 2020 Election.

The cost of the September 2016 Local Government Election was $326,000.

IPART review

In a Circular released by the OLG on 8 February 2019 it was advised the Government has approved a review by the Independent Pricing and Regulatory Tribunal (IPART) of the costs of conducting local government elections in NSW. The purpose of this review is to ensure a robust methodology for determining costs is applied, in order to minimise the financial burden on councils and ratepayers and to ensure local government elections are conducted efficiently and cost effectively.

IPART is expected to consult with relevant stakeholders, including Councils, and have been requested to report to the Minister for Local Government recommending a costing methodology to be applied in determining the amount the NSWEC charges councils to administer their ordinary elections.

IPART is to report to the Minister by 30 August 2019. As the outcomes of that review may impact the administration of the September 2020 elections it is proposed to introduce legislation in the first parliamentary sitting period of 2019 following the NSW State Election, to amend the Act to extend the deadline for councils to make decision on the administration of their elections under section 296AA and 296. This deadline will be extended to 1 January 2020.

Policy and Legislation

Local Government Act 1993

Critical dates to comply with the Act are:

Event	Date
Resolution of Council regarding who will administer the 2020 Local Government Election	No later than 11 March 2019
Arrangement with the NSWEC to administer all elections (proposed)	11 June 2019
IPART Report to Minister	30 August 2019
Proposed extension if s296AA and s296 is amended	1 January 2020

Amendments were made to the Local Government (General) Regulation 2005 (the Regulation) give effect to the Government’s response to the recommendations of the Joint Standing Committee on Electoral Matters in relation to preference counting in local government elections and also to give effect to the 2014 amendments to the Act that gave councils the option of holding a countback election to fill causal vacancies in the first 18 months of their terms.

A number of other amendments have been made to align the electoral provisions of the Regulation with the Electoral Act 2017, to reflect the more contemporary electoral practices that apply at state elections.

Link to Strategic Plan

Community Leadership and Collaboration

Objective: We have strong leadership

Outcome: We have leaders that represent us

Risk Management Issues for Council

If a council fails to make a decision on the administration of its elections, polls and referenda by 11 March 2019, it will not be able to engage the NSWEC to administer its ordinary election and it will be required to make its own arrangements for the administration of its elections.

A council that fails to make a decision on the administration of its elections by 11 March 2019 will also be required to publish a notice of that failure on the council’s website.

The Office of Local Government’s Circular to Councils (18-43) included a statement that a council should only resolve to administer its own elections if it is confident that it has the capacity to do so.

There would be a significant strain on Council’s resources, including a burden on its operations, in the event Council were to administer the 2020 Ordinary Election.

The amendments to the Regulation outlined above will make the counting of votes at council elections fairer and more accurate and transparent by removing the random sampling of preference allocation and replacing it with a fractional transfer system – all ballot papers of the elected candidate are used to distribute the surplus. A key consideration is whether the provider is able to administer the complex counts required under that new method of preference allocation (Gregory method of preference allocation).

Under the proposed amendments to the Act, following the IPART review, councils will have until 1 January 2020 to resolve to make a decision on the administration of their elections and enter into any arrangements with the NSWEC. However, this legislation will not be introduced until the first parliamentary sitting period after the NSW State Election (March 23) this year. Under the current s296AA of the Act, councils must make a decision about the administration of its elections at least 18 months before the ordinary council election.

Internal / External Consultation

Office of Local Government

NSW Electoral Commission

Australian Election Company

Regional Procurement

Engaging with other NSW Councils

Attachments

1 .

Schedule 1 and 2 Pricing and Covering Letter

This matter is considered to be confidential under Section 10A(2) of the Local Government Act 1993, as it deals with: commercial information of a confidential nature that would, if disclosed, prejudice the commercial position of the person who supplied it. - Provided under separate cover

Reports submitted to the Ordinary Meeting of Council to be held on Monday 25 February 2019.

Present

The Mayor, Councillor Greg Conkey OAM

Councillor Yvonne Braid OAM

Councillor Dan Hayes

Councillor Paul Funnell

Councillor Vanessa Keenan

Councillor Rod Kendall

Councillor Tim Koschel

Councillor Kerry Pascoe

Councillor Dallas Tout

In Attendance

General Manager (Mr P Thompson)

Director Finance (Mrs N Te Pohe)

Director Community (Mrs J Summerhayes)

Director Commercial Operations (Ms C Angel)

Manager Finance (Mrs C Rodney)

Manager Executive Support (Mr S Gray)

Manager Technical & Strategy (Mr P Ross)

Manager Parks & Strategic Operations (Mr H Pavitt)

Manager People & Culture (Mrs F Piltz)

Cultural Officer (Mr T Kurylowicz)

Corporate Governance Coordinator (Mrs N Johnson)

Communications & Engagement Officer (Mr S Shaw)

Governance Officer (Ms B King)

Prayer

Almighty God,

Help protect our Mayor, elected Councillors and staff.

Help Councillors to govern with justice, integrity, and respect for equality, to preserve rights and liberties, to be guided by wisdom when making decisions and settling priorities, and not least of all to preserve harmony.

Amen.

Acknowledgement Of Country

I would like to acknowledge the Wiradjuri people who are the Traditional Custodians of this Land. I would also like to pay respect to the Elders both past and present of the Wiradjuri Nation and extend that respect to other Community members present.

APOLOGIES

No apologies received.

CONFIRMATION OF MINUTES

CM-1 ORDINARY COUNCIL MEETING - 29 JANUARY 2019

19/023 RESOLVED:

On the Motion of Councillors T Koschel and D Tout

That the Minutes of the proceedings of the Ordinary Council Meeting held on 29 January 2019 be confirmed as a true and accurate record.

CARRIED

RECORD OF VOTING ON THE MOTION

For the Motion	Against the Motion
Y Braid OAM
G Conkey OAM
P Funnell
D Hayes
V Keenan
R Kendall
T Koschel
K Pascoe
D Tout

Declarations Of Interest

Councillor V Keenan declared a Non-Significant, Non-Pecuniary Interest in CONF-1 NightLights Public Art Projection Commission the reason being that the creative Producer is a former sub-contractor of hers and remained in the chamber during its consideration.

MOTIONS OF WHICH DUE NOTICE HAS BEEN GIVEN

NOM-1 NOTICE OF MOTION - NSW LEGISLATION ALLOWING CEMETERY OPERATORS TO REUSE GRAVES

19/024 RESOLVED:

On the Motion of Councillors D Hayes and V Keenan

That Council:

a is made aware of the new regulations introduced by the State Government contained in the Cemeteries and Crematoria Regulation 2018, which allows cemeteries to disinter human remains as little as 25 years after the burial and sell the plot to another party

b requests a report recommending whether Wagga Wagga City Council will or will not implement the new regulations

c notes that even though a report is pending, Council has no intention to proceed with the leasing of burial plots

CARRIED

RECORD OF VOTING ON THE MOTION

For the Motion	Against the Motion
Y Braid OAM
G Conkey OAM
P Funnell
D Hayes
V Keenan
R Kendall
T Koschel
K Pascoe
D Tout

PROCEDURAL MOTION - ENGLOBO

19/025 RESOLVED:

On the Motion of Councillors R Kendall and D Hayes

That the standing orders be varied for the meeting as set out hereunder:

· Items where councillors wish to speak

· Items where no councillors wish to speak

· Confidential

· Matter of urgency

· Closure of Meeting

That RP-5, M-1 and CONF-1 be adopted as recommended in the business papers.

CARRIED

REPORTS FROM STAFF

RP-1 ALCOHOL FREE ZONE RENEWAL AND PROHIBITED AREAS

19/026 RESOLVED:

On the Motion of Councillors R Kendall and P Funnell

That Council:

a receive and note the report

b declare the area bounded by and including the following streets and laneways on both sides an Alcohol Free Zone for the period up to 14 February 2023:

· Travers Street (between Trail and Fitzmaurice Streets)

· Fitzmaurice Street (between Travers and Sturt Streets)

· Cadell Place

· Tarcutta Street (between Sturt and Morrow Streets)

· Morrow Street (between Tarcutta and O’Reilly Streets)

· O'Reilly Street (between Morrow and Tompson Streets)

· Tompson Street (between O'Reilly and Berry Streets)

· Berry Street (between Tompson and Morgan Streets)

· Morgan Street (between the eastern side of Livvi’s Place and Fitzhardinge Street)

· Fitzhardinge Street (between Morgan and Edward Streets)

· Edward Street (between Fitzhardinge and Peter Streets)

· Flinders Street

· Station Place

· Peter Street (between Edward and Morrow Streets)

· Morrow Street (between Peter Street and Ivan Jack Drive)

· Ivan Jack Drive (between The Esplanade and Johnson Street)

· Trail Street (between Johnson and Travers Streets)

c prohibit the consumption of alcohol in:

· Victory Memorial Gardens and Wollundry Lagoon Amphitheatre between the hours of 10:00pm and 10:00am

· Tony Ireland Park at all times and

· Skate Park area at Bolton Park at all times

· Livvi’s Place at Bolton Park at all times

d endorse that the areas within the proposed zone which are leased to food outlets and which have the necessary permission to serve alcohol be precluded from the Alcohol Free Zone whilst they are open for business

e alter the map to accurately reflect the descriptive locations in b and c above

CARRIED

RECORD OF VOTING ON THE MOTION

For the Motion	Against the Motion
Y Braid OAM
G Conkey OAM
P Funnell
D Hayes
V Keenan
R Kendall
T Koschel
K Pascoe
D Tout

RP-2 Roads to Recovery Allocation 2019/20 to 2023/24

19/027 RESOLVED:

On the Motion of Councillors P Funnell and T Koschel

That Council authorise the Mayor and General Manager to:

a write to the Hon Michael McCormack MP Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development and the Hon Scott Buchholz MP Assistant Minister for Roads and Transport:

i expressing concern in relation to the reduction of funding available through the Roads to Recovery Program, which places significant pressure on local government to maintain roads

ii emphasising the importance of the quality of Wagga Wagga’s assets to supporting decentralisation and high economic growth in the region

iii emphasising the risk of reducing funding on safety, highlighting that rural and regional roads have the highest rates of fatal accidents and ongoing Federal support is fundamental to large regional local governments

b write to the opposition leader the Hon Bill Shorten MP Leader of the Opposition and Hon Anthony Albanese MP Shadow Minister for Infrastructure, Transport, Cities and Regional Development:

i expressing concern in relation to the reduction of funding available through the Roads to Recovery Program, which places significant pressure on local government to maintain roads

ii requesting support, if elected, to return the Roads to Recovery allocation to at least the level of funding allocated during the 2014/15 to 2018/19 period to ensure that Wagga Wagga’s road assets can support decentralisation and the high economic growth in the region

c include the following Motion to the 2019 National General Assembly of Local Government (NGA) for consideration:

Motion:

That the Federal Government restore the 2019/20 to 2023/24 Roads to Recovery funding allocations to at least the equivalent funding level of the Roads to Recovery Program 2014/15-2018/19

d write to Local Government NSW to seek their support in this advocacy

CARRIED

RECORD OF VOTING ON THE MOTION

For the Motion	Against the Motion
Y Braid OAM
G Conkey OAM
P Funnell
D Hayes
V Keenan
R Kendall
T Koschel
K Pascoe
D Tout

RP-3 Wagga Wagga City Council Participation in Mardi Gras 2019

19/028 RESOLVED:

On the Motion of Councillors D Hayes and V Keenan

That Council:

a endorse the entry of a Wagga Wagga City Council float at the request of Council staff

b approve the budget variation as detailed in the financial section of this report

CARRIED

RECORD OF VOTING ON THE MOTION

For the Motion	Against the Motion
G Conkey OAM	P Funnell
D Hayes	Y Braid OAM
V Keenan
R Kendall
T Koschel
K Pascoe
D Tout

RP-4 SISTER CITY VISIT TO NÖRDLINGEN

19/029 RESOLVED:

On the Motion of Councillors P Funnell and R Kendall

That Council:

a appoint the Mayor and the General Manager to lead a delegation to attend the Historisches Stadtmauerfest 2019 - Historic Wall Festival in Nördlingen from 6 September to 8 September 2019

b endorse paying all reasonable delegation related expenses for the Mayor and General Manager

CARRIED

RECORD OF VOTING ON THE MOTION

For the Motion	Against the Motion
Y Braid OAM
G Conkey OAM
P Funnell
D Hayes
V Keenan
R Kendall
T Koschel
K Pascoe
D Tout

RP-5 Response to Questions/Business with Notice

19/030 RESOLVED:

On the Motion of Councillors R Kendall and D Hayes

That Council receive and note the report.

CARRIED

RECORD OF VOTING ON THE MOTION

For the Motion	Against the Motion
Y Braid OAM
G Conkey OAM
P Funnell
D Hayes
V Keenan
R Kendall
T Koschel
K Pascoe
D Tout

COMMITTEE MINUTES

M-1 SISTER CITY COMMUNITY COMMITTEE MINUTES - 6 DECEMBER 2018

19/031 RESOLVED:

On the Motion of Councillors R Kendall and D Hayes

That Council receive the minutes of the Sister City Community Committee Meeting held on 6 December 2018.

CARRIED

RECORD OF VOTING ON THE MOTION

For the Motion	Against the Motion
Y Braid OAM
G Conkey OAM
P Funnell
D Hayes
V Keenan
R Kendall
T Koschel
K Pascoe
D Tout

M-2 Airport Advisory Committee Meeting - 3 October 2018

19/032 RESOLVED:

On the Motion of Councillors P Funnell and D Hayes

That Council receive the minutes of the Airport Advisory Committee Meeting held on 3 October 2018.

CARRIED

RECORD OF VOTING ON THE MOTION

For the Motion	Against the Motion
Y Braid OAM
G Conkey OAM
P Funnell
D Hayes
V Keenan
R Kendall
T Koschel
K Pascoe
D Tout

QUESTIONS/BUSINESS WITH NOTICE

The following Questions/Business with Notice were raised and will be addressed in the next available Business paper:

1. Councillor D Hayes requested advice on the rationale behind closing the Visit Wagga Twitter account.

2. Councillor R Kendall attended Tumbatrek along with Councillor V Keenan and General Manager, Peter Thompson on the weekend. Councillor R Kendall queried if there are any opportunities for Council to consider similar awareness and engagement for the Wagga Wagga Wiradjuri walking track.

The following matters was noted at the meeting:

1. Councillor R Kendall handed out the Local Government NSW Election Priorities Brochure to Councillors and Executive

2. The Mayor, Councillor G Conkey OAM advised that Wagga Wagga is hosting members of the Canberra Region Joint Organisation in conjunction with the Board meeting this Thursday and Friday.

CONFIDENTIAL REPORTS

CONF-1 NightLights Public Art Projection Commission

19/033 RESOLVED:

On the Motion of Councillors R Kendall and D Hayes

The Council:

a appoint artist Cindi Drennan as recommended by the PAAP in this report for the NightLights Projection Lab and Commission 2018/19

b appoint artist Kellie O’Dempsey as recommended by the PAAP in this report for the NightLights Projection Lab and Commission 2019/20

c authorise the affixing of Council’s Common Seal to all relevant documents as required

d advise the unsuccessful expression of interest applicants in writing

CARRIED

RECORD OF VOTING ON THE MOTION

For the Motion	Against the Motion
Y Braid OAM
G Conkey OAM
P Funnell
D Hayes
V Keenan
R Kendall
T Koschel
K Pascoe
D Tout

THIS COMPLETED THE BUSINESS OF THE COUNCIL MEETING WHICH ROSE AT 6.50pm.

…………………………………………………..

MAYOR

Applicant	Watsons Hill Pty Ltd Directors – Robert Salisbury, Lena Alatalo, Antti Alatalo, Mike Alatalo Secretaries – Robert Salisbury, Antii Alatalo, Jennifer Priest, Mike Alatalo, Anthony Moyle, Paul Eady
Owner	Watsons Hill Pty Ltd Directors & Secretaries – see above.
Development Cost	$100,000
Development Description	The applicant seeks approval for subdivision under Torrens title of the existing lot (Lot 39 DP 1085747) to create 9 lots in total. Eight residential lots are proposed ranging from 2.016 hectares to 2.324 hectares in area. The residential allotments will be provided access to Genista Place, Wisteria Place and Featherwood Drive via 3 existing access handles serving the parent allotment. Lot 9 will have an area of 8.332 hectares and will be dedicated as public reserve to Council. This allotment is the subject of a Voluntary Planning Agreement (VPA) (identified as the draft “Genista Place Planning Agreement”) which will allow for the dedication of proposed Lot 9 in lieu of the payment of developer contributions under s.7.11 of the Environmental Planning and Assessment Act 1979. At its meeting of 29 January 2019, Council resolved to enter into this VPA and authorised the General Manager to execute the agreement.

1.	DA170572 - Section 4.15 Assessment Report - Provided under separate cover
2 .	DA17/0572 - Subdivision Plan - Provided under separate cover
3 .	DA17/0572 - Redacted submissions - Provided under separate cover

Airport Fees proposed to remain at 2018/19 rates:		2018/19 Adopted Fee (GST Incl)	2019/20 Previously Proposed Fee (GST Incl)	Previously proposed % Increase	2019/20 Revised Proposed Fee (GST Incl)	Estimated reduced income to be received from freezing fees
Passenger Charges Sydney threshold – 180,000, then fee reduces to 50% Melbourne threshold – 6,000 then fee reduces to 50%		$13.60	$13.86	1.91%	$13.60	($48,687)
General Aviation Landing Charges	Landing charge – fixed wing aircraft (non RPT)	$13.86	$14.55	4.98%	$13.86	($15,747)
	Landing charge – rotary wing aircraft (non RPT)	$6.93	$7.28	5.05%	$6.93
	Resident Commercial and Pilot Training Aircraft – Annual Landing Permit	$336.27	$353.09	5.00%	$336.27
	Resident Freight Aircraft – Annual Landing Permit	$169.36	$177.83	5.00%	$169.36
	Private Aircraft – Annual Landing Permit	$168.14	$176.54	5.00%	$168.14
Estimated Reduced Income to be received if above fees remain at the 2018/19 rate – a reduction to Airport Reserve						($64,434)

Total Budgeted passenger charges income	$2,792,785
YTD Actuals as at 31 December 2018	$1,290,849
Percentage Target Versus Actuals	50% v 46.22%
Anticipated under budget if first half of year trend continues	($211,087)

	2018/19 Original Adopted	2018/19 Revised Estimate (less income than budgeted)
Opening Balance (Estimate for 2019/20)	$63,685	$63,685
Budgeted Operating Deficit	($1,762,230)	($1,973,317)
Back out non-cash Depreciation	$2,895,151	$2,895,151
Add in Principal Loan Repayments	($662,112)	($662,112)
Draft Revised Transfer to Reserve (FY Operating Result)	$470,809	$259,722
Proposed Capital projects funded from Reserve	($36,000)	($36,000)
Total Net Reserve Movement	$434,809	$223,722
Estimated Closing Balance of Reserve	$498,494	$287,407

1 ⇩.	LEP18/0013 - Sturt Street - Assessment Report
2.	Urban Design Review - Urbis - Provided under separate cover

1 ⇩.	Draft 2019/20 Airport Fees and Charges
2 ⇩.	Submission by Geoff Breust
3 ⇩.	Additional Submission by Geoff Breust
4 ⇩.	Submission by REX
5 ⇩.	Annexure A to REX Submission

Operational Items		Capital Items
On track	Need Attention	On Track	Needs Attention	Critical
37	2	114	37	55

Initiation	Planning	Execution	Completion
127	23	39	17

1 ⇩.	Operational Performance Report - December 2018
2.	Capital Performance Report - December 2018 - Provided under separate cover

1 ⇩.	Floodplain Risk Management Advisory Committee Minutes - 30 October 2018
2 ⇩.	Floodplain Risk Management Advisory Committee Minutes - 11 December 2018