Agenda of Ordinary Meeting of Council

Report submitted to the Ordinary Meeting of Council on Monday 29 April 2019. RP-4

RP-4 Financial Performance Report as at 31 March 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 March 2019.

Recommendation

That Council:

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

b note the Responsible Accounting Officer’s reports, in accordance with the Local Government (General) Regulation 2005 (Part 9 Division 3: Clause 203) that the financial position of Council is satisfactory having regard to the original estimates of income and expenditure and the recommendations made above

c note details of the external investments as at 31 March 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 March 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 March, 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 75% of approved budget, which is tracking on budget for the end of March (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 89%.

OPERATING EXPENSES

Total operating expenditure is 71% of approved budget and is tracking close to the budget for the full financial year.

CAPITAL INCOME

Total capital income is 51% 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 88% of approved budget. The significant increase from what was reported in February’s Financial Performance Report of 33% is a result of the transfer of $69M of capital works budgets from the 2018/19 financial year to the 2019/20 and 2020/21 financial years as part of the Capital Works Reset Report adopted at the 25 March 2019 Council meeting.

WAGGA WAGGA CITY COUNCIL STATEMENT OF FINANCIAL PERFORMANCE 1 JULY 2018 TO 31 MARCH 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)	(50,355,790)	0	(50,355,790)	76%
User Charges & Fees	(26,844,544)	361,404	(26,483,140)	(18,597,600)	0	(18,597,600)	70%
Interest & Investment Revenue	(2,917,452)	(764,199)	(3,681,651)	(3,380,988)	0	(3,380,988)	92%
Other Revenues	(2,983,104)	(332,402)	(3,315,506)	(2,732,666)	0	(2,732,666)	82%
Operating Grants & Contributions	(13,284,867)	3,453,922	(9,830,944)	(7,054,810)	0	(7,054,810)	72%
Capital Grants & Contributions	(36,517,290)	15,768,543	(20,748,747)	(11,694,381)	0	(11,694,381)	56%
Total Revenue	(149,156,350)	18,487,268	(130,669,082)	(93,816,234)	0	(93,816,234)	72%

Expenses
Employee Benefits & On-Costs	44,786,608	333,470	45,120,078	30,420,912	8,665	30,429,577	67%
Borrowing Costs	3,752,580	(121,277)	3,631,304	2,639,841	0	2,639,841	73%
Materials & Contracts	32,384,231	6,226,531	38,610,762	23,166,537	3,594,705	26,761,242	69%
Depreciation & Amortisation	35,418,997	0	35,418,997	26,564,247	0	26,564,247	75%
Other Expenses	12,125,204	(2,314,984)	9,810,220	7,568,758	86,171	7,654,928	78%
Total Expenses	128,467,621	4,123,740	132,591,361	90,360,296	3,689,540	94,049,836	71%

Net Operating (Profit)/Loss	(20,688,729)	22,611,009	1,922,279	(3,455,938)	3,689,540	233,602

Net Operating (Profit)/Loss before Capital Grants & Contributions	15,828,561	6,842,466	22,671,027	8,238,443	3,689,540	11,927,983

Capital / Reserve Movements
Capital Exp - Renewals	33,460,752	(8,288,178)	32,792,575	15,719,664	15,070,736	30,790,399	94%
Capital Exp - New Projects	32,626,087	(17,490,786)	15,135,301	9,284,191	2,781,057	12,065,248	80%
Capital Exp - Project Concepts	23,554,733	(15,214,826)	719,907	91,549	26,320	117,869	16%
Loan Repayments	3,129,777	(225,924)	2,903,853	2,177,890	0	2,177,890	75%
New Loan Borrowings	(6,108,672)	1,503,878	(4,604,793)	0	0	0	0%
Sale of Assets	(952,795)	(2,701,703)	(3,654,498)	(613,992)	(72,250)	(686,242)	19%
Net Movements Reserves	(29,602,157)	19,806,530	(9,795,626)	0	0	0	0%
Total Cap/Res Movements	56,107,727	(22,611,009)	33,496,718	26,659,301	17,805,863	44,465,164

	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	23,203,363	21,495,404	44,698,766

Add back Depreciation Expense	35,418,997	0	35,418,997	26,564,247	0	26,564,247	75%

Cash Budget (Surplus)/Deficit	0	0	0	(3,360,885)	21,495,404	18,134,519

Revised Budget Result - Surplus/(Deficit)

$’000s

Original 2018/19 Budget Result as adopted by Council

Total Budget Variations approved to date

Budget variations for March 2019

Proposed revised budget result for 31 March 2019

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

*Budget Variation*			*Amount*			*Funding Source*	*Net Impact* *Fav/ (Unfav)*
*1 – Community Leadership and Collaboration*
2019 NSW Training Awards - Sponsorship			$600			People & Culture Operational Budget ($600)	Nil
As part of Council’s commitment to Vocational Education and Training (VET) and its own trainees and apprentices, Council Officers have considered that sponsorship to the value of $600 for the 2019 NSW Training Awards – Riverina-Murray Presentation Evening is an important element in demonstrating our commitment to further education for our own staff and the importance of VET in the community. This event will be held on 14 June 2019.
Underground Depot Fuel Tank Report - Consultancy			$50K			Plant Replacement Reserve ($50K)	Nil
The Underground Depot Fuel Tanks were installed at the depot in the early 1990’s and are at the end of their useful life. Funds are now required for an expert consultant to be engaged to provide a report on the condition of these tanks and the timeframe for their replacement. It is proposed to fund the variation from the Plant Replacement Reserve.
Procure to Pay - Automated Workflow Project			$50K			Corporate Hardware Purchases ($15K) Fleet Services Operational Savings ($35K)	Nil
Council’s Procure to Pay Automated Workflow project was scheduled for completion this financial year. The project’s objective is to move to a paperless environment from purchasing (purchase orders and inventory management) right through to the approval to pay. There was initially $50K allocated to this project from Council’s annual Corporate Applications budget, however the quote has outlined additional funding of $50K required for the project. It is proposed to fund the additional amount from IT Corporate Hardware purchases and Fleet operational savings. Due to the additional funds required, this has resulted in this project now being rescheduled to commence in November 2019 (after the completion of the 2018/19 end of financial year). Estimated completion: April 2020
*2 – Safe and Healthy Community*
Ladysmith and Brucedale Toilets		$107K			Rural Fire Service Contribution ($107K)		Nil
Initial funding advice was received from the Rural Fire Service (RFS) for the installation of toilets at Ladysmith for $30K which was previously reported to Council. A further $27K has since been approved by RFS once final scope and designs for the project were completed. The Brucedale Hall RFS toilets approved RFS funding has been advised at $80K. This brings the total combined budgets to $137K for the two toilet installation projects. Estimated completion: 30 June 2019
Robertson Oval Shed Extension	$13K			Parks Open Space Maintenance Savings ($13K)			Nil
Funds are required for the extension of the existing shed at Robertson Oval due to increased storage requirements. It is proposed to fund the variation from existing Parks maintenance operational savings.
Wagga Junior State Cup Touch Carnival - Traffic Control	$39K			NSW Touch Contribution ($10K) Parks & Recreation Operational Savings ($12K) Infrastructure Planning Operational Savings ($5K) Urban Sealed Roads Maintenance ($12K)			Nil
Funds were required for the provision of Traffic Control and Variable Message Boards for the three-day NSW Touch Junior State Cup Southern Conference held at Jubilee Park in February 2019. It is proposed to fund these works a from a contribution from NSW Touch, along with identified savings in existing operational budgets.
*3 – Growing Economy*
Wiradjuri Walking Track Promotion		$25K			NSW Department of Industry – Crown Lands Contribution ($25K)		Nil
Council has been successful in securing a NSW Department of Industry – Crown Lands contribution towards the Wiradjuri Walking Track. These funds are to be used to improve conditions and safety of the walking track between Marrambidya Wetlands and Gobbagombalin Bridge and to update and design a new map and promotional brochure for visitors and residents. Estimated Completion: 30 June 2019
Bomen RIFL Stage 2		$59K			Additional Interest on Investments Income ($59K)		Nil
Funds of $59K are required for additional reference design engineering services as part of the reference design and costing phase relating to Stage 2 of the Riverina Intermodal Freight and Logistics Hub (RIFL) Hub project. It is proposed to fund this variation from additional interest on investments income due to the recently adopted Capital Works Reset Report which has resulted in an increased investment portfolio balance as the expenditure for a number of large projects has been deferred to next financial year.
Airport Screening, Building and Lighting Maintenance		$45K			Airport Marketing & Promotions ($15K) Airport Security ($10K) Airport Conferences/Seminars ($10K) Airport Security Screening Materials ($10K)		Nil
It is proposed to reallocate existing Airport budgets to correctly reflect the maintenance requirements of the Airport lighting, buildings and screening equipment. The maintenance is required to ensure that the Airport is compliant with Work Health & Safety and Security regulations.
*4 – Community Place and Identity*
Wagga Community Directory Subscription			$18K			Social Planning ($12K) Economic Development ($5K) Information Technology Services ($1K)	Nil
These funds are required to replace the current community directory to be a more responsive and accessible platform that will include an online searchable database that is updated regularly. This directory will also be able to be printed in hard copy on demand. An initial two-year membership to the Wagga Wagga Community Directory platform is recommended. This community directory will provide up to date information for all community members relating to education, health, recreation, community and cultural services groups and organisations within the Wagga Wagga Local Government Area. It is proposed to fund the variation from various budgets including Information technology services, economic development and social planning in 2018/19 and 2019/20. This action will also respond to item 4.1 in Council’s Disability Inclusion Action Plan – ‘community directory is an accessible format and includes information on services for people with disabilities’. This item is due for implementation by 30 June 2019.
Danny Green ‘Stop the Coward’s Punch’ Event			$7K			Generic Projects Reserve ($7K)	Nil
A request has been received by the event organisers for Council to sponsor the “Danny Green ‘Stop the Coward’s Punch’ night” being held at the Wagga RSL Club on 19 July 2019. The campaign is focused on the ‘Coward Punch’ and highlights the effects of violence on the victim, the perpetrator and their families. Please see the request which is attached to this report. The event is costing $16K, with proposed Council support of $7K to be funded from the Generic Projects Reserve.
*5 – The Environment*
Dedicated Family Room – Civic Centre	$21K			Operational Savings - Internal Audit ($7K) General Manager ($8K) People & Culture ($6K)			Nil
It is proposed to construct a dedicated small family room on the ground level of the Civic Centre located across from the Art Gallery. The space will be available for parents and caregivers to feed their children in a private, quiet area. The space will be accessible for both the public and council staff. Funds have been sourced from a number of small operational budgets across Council. Project completion: June 2019
							Nil

Current Restrictions

RESERVES SUMMARY
31 MARCH 2019
	CLOSING BALANCE 2017/18	ADOPTED RESERVE TRANSFERS 2018/19	BUDGET VARIATIONS APPROVED UP TO COUNCIL MEETING 25.03.19	PROPOSED CHANGES for Council Resolution	REVISED BALANCE

Externally Restricted
Developer Contributions - Sect 7.11	(19,959,750)	7,405,683	(8,600,227)		(21,154,294)
Developer Contributions - Sect 7.12	(465,272)	358,500	112,629		5,857
Developer Contributions – S/Water DSP S64	(5,478,298)	500,000	(823,831)		(5,802,128)
Sewer Fund	(26,204,212)	4,267,364	(6,053,797)		(27,990,645)
Solid Waste	(20,184,154)	9,600,364	(8,383,353)		(18,967,142)
Specific Purpose Grants	(3,519,384)	0	3,519,384		0
SRV Levee	(2,847,382)	1,807,667	(798,197)		(1,837,912)
Stormwater Levy	(3,167,296)	162,032	(97,159)		(3,102,423)
Total Externally Restricted	(81,825,747)	24,101,610	(21,124,550)	0	(78,848,687)

Internally Restricted
Airport	(63,685)	(158,452)	(25,598)		(247,735)
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	(59,501)		(762,894)
CCTV	(74,476)	(10,000)	0		(84,476)
Cemetery Perpetual	(65,479)	(129,379)	103,758		(91,100)
Cemetery	(452,507)	420	79,947		(372,141)
Civic Theatre Operating	0	(55,000)	24,485		(30,515)
Civic Theatre Technical Infrastructure	(92,585)	(50,000)	63,711		(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	(178,519)		(230,992)
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	(3,637,770)		(4,533,978)
Generic Projects Saving	(1,056,917)	150,000	115,306	7,000	(784,611)
Glenfield Community Centre	(19,704)	(2,000)	0		(21,704)
Grants Commission	(5,199,163)	0	5,199,163		0
Grassroots Cricket	(70,992)	0	0		(70,992)
Gravel Pit Restoration	(767,509)	0	0		(767,509)

RESERVES SUMMARY
31 MARCH 2019
	CLOSING BALANCE 2017/18	ADOPTED RESERVE TRANSFERS 2018/19	BUDGET VARIATIONS APPROVED UP TO COUNCIL MEETING 25.03.19	PROPOSED CHANGES for Council Resolution	REVISED BALANCE
Gurwood Street Property	(50,454)	0	0		(50,454)
Information Services	(369,113)	77,858	73,406		(217,850)
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)	(680,576)		(1,830,551)
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)	1,166,384		(5,705,146)
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	(481,652)		(1,232,195)
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	50,000	(2,587,671)
Playground Equipment Replacement	(164,784)	69,494	0		(95,290)
Project Carryovers	(2,006,338)	402,808	914,760		(688,770)
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	4,470		(489,512)
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	4,254,872	57,000	(28,238,786)

Total Restricted	(118,621,137)	28,346,342	(16,869,678)	57,000	(107,087,473)

Long Term Financial Plan – Projected Surplus/ (Deficit) Result – 2018/19 to 2027/28

The 10 year Projected Surplus/ (Deficit) Result graph has not been included for the March 2019 quarter due to the existing budgets for the Long Term Financial Plan currently being developed as part of the 2020/29 budget process.

Investment Summary as at 31 March 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 28/02/2019 $	Closing Balance Invested 31/03/2019 $	March EOM Current Yield %	March EOM % of Portfolio	Investment Date	Maturity Date	Term (mths)
*Short Term Deposits*
AMP	A-	2,000,000	2,000,000	2.95%	1.44%	1/06/2018	31/05/2019	12
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%	1.44%	28/05/2018	28/05/2019	12
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%	1.44%	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
AMP	A-	0	1,000,000	3.00%	0.72%	6/03/2019	2/09/2019	6
AMP	A-	0	1,000,000	3.00%	0.72%	6/03/2019	2/12/2019	9
*Total Short Term Deposits*		10,000,000	12,000,000	2.90%	8.64%
*At Call Accounts*
NAB	AA-	2,133,724	696,048	1.50%	0.50%	N/A	N/A	N/A
NAB	AA-	15,837,974	12,562,844	2.19%	9.05%	N/A	N/A	N/A
*Total At Call Accounts*		17,971,698	13,258,892	2.15%	9.55%
*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%	2.16%	24/08/2017	26/08/2019	24
ME Bank	BBB	2,000,000	2,000,000	4.28%	1.44%	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%	1.44%	7/07/2017	7/07/2020	36
AMP	A-	2,000,000	2,000,000	3.00%	1.44%	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
Westpac	AA-	3,000,000	3,000,000	2.96%	2.16%	10/03/2017	10/03/2022	60
Auswide	BBB-	2,000,000	2,000,000	2.95%	1.44%	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%	1.44%	6/11/2017	6/11/2019	24
BOQ	BBB+	2,000,000	2,000,000	3.35%	1.44%	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%	1.44%	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%	1.44%	28/06/2018	28/06/2021	36
Westpac	AA-	2,000,000	2,000,000	2.88%	1.44%	28/06/2018	29/06/2020	24
ING Bank	A	2,000,000	2,000,000	2.86%	1.44%	16/08/2018	17/08/2020	24
BOQ	BBB+	3,000,000	3,000,000	3.25%	2.16%	28/08/2018	29/08/2022	48
ING Bank	A	3,000,000	3,000,000	2.85%	2.16%	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%	1.44%	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 28/02/2019 $	Closing Balance Invested 31/03/2019 $	March EOM Current Yield %	March EOM % of Portfolio	Investment Date	Maturity Date	Term (mths)
ING Bank	A	2,000,000	2,000,000	2.93%	1.44%	29/11/2018	30/11/2020	24
NAB	AA-	2,000,000	2,000,000	3.01%	1.44%	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%	1.44%	5/12/2018	7/12/2020	24
Newcastle Permanent	BBB	2,000,000	2,000,000	3.05%	1.44%	8/02/2019	8/02/2022	36
ING Bank	A	1,000,000	1,000,000	2.82%	0.72%	22/02/2019	22/02/2021	24
*Total Medium Term Deposits*		56,000,000	56,000,000	3.08%	40.33%
*Floating Rate Notes - Senior Debt*
BOQ	BBB+	2,015,000	2,006,000	BBSW + 110	1.44%	5/08/2014	24/06/2019	58
Bendigo-Adelaide	BBB+	1,006,565	1,009,134	BBSW + 110	0.73%	18/08/2015	18/08/2020	60
Bendigo-Adelaide	BBB+	1,006,565	1,009,134	BBSW + 110	0.73%	28/09/2015	18/08/2020	59
Newcastle Permanent	BBB	1,007,494	0	0.00%	0.00%	22/03/2016	22/03/2019	36
CUA	BBB	2,013,748	1,999,672	BBSW + 160	1.44%	1/04/2016	1/04/2019	36
AMP	A-	1,007,024	1,008,334	BBSW + 135	0.73%	24/05/2016	24/05/2021	60
BOQ	BBB+	1,513,131	1,517,976	BBSW + 117	1.09%	26/10/2016	26/10/2020	48
Teachers Mutual	BBB	1,508,693	1,512,951	BBSW + 140	1.09%	28/10/2016	28/10/2019	36
ANZ	AA-	1,007,574	1,012,104	BBSW + 100	0.73%	7/03/2017	7/03/2022	60
CUA	BBB	758,043	753,836	BBSW + 130	0.54%	20/03/2017	20/03/2020	36
Heritage Bank	BBB+	603,699	605,576	BBSW + 130	0.44%	4/05/2017	4/05/2020	36
Teachers Mutual	BBB	1,010,614	1,006,115	BBSW + 142	0.72%	29/06/2017	29/06/2020	36
NAB	AA-	3,026,952	3,018,915	BBSW + 90	2.17%	5/07/2017	5/07/2022	60
Suncorp-Metway	A+	1,003,225	1,008,354	BBSW + 97	0.73%	16/08/2017	16/08/2022	60
Westpac	AA-	2,006,990	2,016,308	BBSW + 81	1.45%	30/10/2017	27/10/2022	60
ME Bank	BBB	1,506,893	1,512,066	BBSW + 125	1.09%	9/11/2017	9/11/2020	36
NAB	AA-	1,999,172	2,010,450	BBSW + 80	1.45%	10/11/2017	10/02/2023	63
ANZ	AA-	1,502,273	1,509,563	BBSW + 77	1.09%	18/01/2018	18/01/2023	60
Bendigo-Adelaide	BBB+	500,948	503,557	BBSW + 105	0.36%	25/01/2018	25/01/2023	60
Newcastle Permanent	BBB	1,503,743	1,509,773	BBSW + 140	1.09%	6/02/2018	6/02/2023	60
Westpac	AA-	1,997,132	2,008,650	BBSW + 83	1.45%	6/03/2018	6/03/2023	60
UBS	A+	1,993,432	1,999,752	BBSW + 90	1.44%	8/03/2018	8/03/2023	60
Heritage Bank	BBB+	1,410,072	1,403,205	BBSW + 123	1.01%	29/03/2018	29/03/2021	36
ME Bank	BBB	1,608,728	1,614,726	BBSW + 127	1.16%	17/04/2018	16/04/2021	36
ANZ	AA-	2,004,170	2,014,788	BBSW + 93	1.45%	9/05/2018	9/05/2023	60
NAB	AA-	2,002,510	2,013,568	BBSW + 90	1.45%	16/05/2018	16/05/2023	60
CBA	AA-	2,003,810	2,014,048	BBSW + 93	1.45%	16/08/2018	16/08/2023	60
Bank Australia	BBB	752,981	754,811	BBSW + 130	0.54%	30/08/2018	30/08/2021	36
CUA	BBB	600,952	603,229	BBSW + 125	0.43%	6/09/2018	6/09/2021	36
AMP	A-	1,497,864	1,500,144	BBSW + 108	1.08%	10/09/2018	10/09/2021	36
NAB	AA-	2,009,710	2,006,590	BBSW + 93	1.44%	26/09/2018	26/09/2023	60
Bendigo-Adelaide	BBB+	1,005,315	1,009,016	BBSW + 101	0.73%	19/10/2018	19/01/2022	39
CBA	AA-	3,034,722	3,053,919	BBSW + 113	2.20%	11/01/2019	11/01/2024	60
Westpac	AA-	3,030,672	3,050,559	BBSW + 114	2.20%	24/01/2019	24/04/2024	63
ANZ	AA-	2,519,010	2,535,058	BBSW + 110	1.83%	8/02/2019	8/02/2024	60
NAB	AA-	2,006,630	2,019,128	BBSW + 104	1.45%	26/02/2019	26/02/2024	60
*Total Floating Rate Notes - Senior Debt*		56,986,054	56,131,009		40.42%
*Managed Funds*
NSW Tcorp	NR	1,463,864	1,478,312	0.99%	1.06%	17/03/2014	1/03/2024	119
Institution	Rating	Closing Balance Invested 28/02/2019 $	Closing Balance Invested 31/03/2019 $	March EOM Current Yield %	March EOM % of Portfolio	Investment Date	Maturity Date	Term (mths)
*Total Managed Funds*		1,463,864	1,478,312	0.99%	1.06%
TOTAL CASH ASSETS, CASH EQUIVALENTS & INVESTMENTS		142,421,616	138,868,212		100.00%
LESS: RIVERINA REGIONAL LIBRARY (RRL) CASH AT BANK		3,647,264	3,444,932
TOTAL WWCC CASH ASSETS, CASH EQUIVALENTS & INVESTMENTS		138,774,352	135,423,280

Council’s investment portfolio is dominated by Term Deposits, equating to approximately 49% of the portfolio across a broad range of counterparties. Cash equates to 10%, with Floating Rate Notes (FRNs) around 40% and growth funds around 1% of the portfolio.

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

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

Investment Portfolio Balance

Council’s investment portfolio balance has decreased from the previous month’s balance, down from $138.8M to $135.4M.

MONTHLY INVESTMENT MOVEMENTS

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

Institution and Type

Amount

Investment

Term

Interest

Rate

Comments

Newcastle Permanent Floating Rate Note

$1M

3 years

BBSW + 160

This floating rate note was redeemed on maturity and funds were used for cashflow purposes.

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

Institution and Type	Amount	Investment Term	Interest Rate	Comments
AMP Term Deposit	$1M	6 months	3.00%	The AMP rate of 3.00% compared favourably to the rest of the market for this investment term. This term was chosen to fill a maturity gap within Council’s investment portfolio.
AMP Term Deposit	$1M	9 months	3.00%	The AMP rate of 3.00% compared favourably to the rest of the market for this investment term. This term was chosen to fill a maturity gap within Council’s investment portfolio.

Institution and Type

Amount

Investment

Term

Interest

Rate

Comments

AMP Term Deposit

$1M

6 months

3.00%

The AMP rate of 3.00% compared favourably to the rest of the market for this investment term. This term was chosen to fill a maturity gap within Council’s investment portfolio.

AMP Term Deposit

$1M

9 months

3.00%

The AMP rate of 3.00% compared favourably to the rest of the market for this investment term. This term was chosen to fill a maturity gap within Council’s investment portfolio.

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

MONTHLY PERFORMANCE

Interest/growth/capital gains for the month totalled $478,043, which compares favourably with the budget for the period of $291,629, outperforming budget for the month by $186,414.

Council’s T-Corp Long Term Growth Fund contributed to the overall performance for the month of March, as domestic and international markets continued their strong start to the year. The fund was up 0.99% for the month of March and has returned 9.49% 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 has recently been reported to Council. 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 two 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* (2.01%), Council’s investment portfolio returned 3.00% (annualised) for March. 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. Representatives from Imperium Markets will be presenting to Council’s Audit, Risk and Improvement Committee at its 9 May 2019 meeting where Councillors will also be invited to attend.

* 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 relation 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 ⇩.

Danny Green Sponsorship Request

Omitted Clauses from Current Code	Reason
Adjourned motions removed from Order of Business	Not in the Model and not part of current practice.
Business Submitted by Councillors	Proposed User Guide
Confirmation of Minutes of Council Meetings	Provisions covered in Order of Business and internal processes.
Report of a Departmental representative to be tabled at Council meeting	Not required in Code of Meeting Practice
Receipt and Tabling of Petitions	Provisions outlined in Council’s Petition Policy.
Caretaker Provisions	Caretaker provisions will be reported and adopted by Council prior to each Local Government Election in accordance with the Act and advice from the Office of Local Government,
Standards of Conduct	Provisions outlined in Council’s Code of Conduct.
Reportable Political Donations	Provisions within Model Code of Conduct
Pecuniary and Non-Pecuniary Interests	Provisions within Model Code of Conduct
Council Presentations (Clause 77)	Public address provisions are included within Code of Meeting Practice.
Matters not in the Code (Clause 78)	Not required as legislative provisions apply
Smoking on Council’s premises (Clause 79)	Not required in Code of Meeting Practice
Common Seal (Clause 81)	Not required in Code of Meeting Practice
Amendment of Code (Clause 82)	Not required as contained within LGA.
Appointment/Election of Councillor Delegates to attend Conferences, or representatives to be appointed to outside Organisations or like Committees (Clause 83)	POL 025 Payment of Expenses and Provision of Facilities
Councillor attendance at Workshops and additional detail (Clause 84)	Proposed development of Workshop Guideline

Omitted Clauses from Current Code

Reason

Adjourned motions removed from Order of Business

Not in the Model and not part of current practice.

Business Submitted by Councillors

Proposed User Guide

Confirmation of Minutes of Council Meetings

Provisions covered in Order of Business and internal processes.

Report of a Departmental representative to be tabled at Council meeting

Not required in Code of Meeting Practice

Receipt and Tabling of Petitions

Provisions outlined in Council’s Petition Policy.

Caretaker Provisions

Caretaker provisions will be reported and adopted by Council prior to each Local Government Election in accordance with the Act and advice from the Office of Local Government,

Standards of Conduct

Provisions outlined in Council’s Code of Conduct.

Reportable Political Donations

Provisions within Model Code of Conduct

Pecuniary and Non-Pecuniary Interests

Provisions within Model Code of Conduct

Council Presentations (Clause 77)

Public address provisions are included within Code of Meeting Practice.

Matters not in the Code (Clause 78)

Not required as legislative provisions apply

Smoking on Council’s premises (Clause 79)

Not required in Code of Meeting Practice

Common Seal (Clause 81)

Not required in Code of Meeting Practice

Amendment of Code (Clause 82)

Not required as contained within LGA.

Appointment/Election of Councillor Delegates to attend Conferences, or representatives to be appointed to outside Organisations or like Committees (Clause 83)

POL 025 Payment of Expenses and Provision of Facilities

Councillor attendance at Workshops and additional detail (Clause 84)

Proposed development of Workshop Guideline

Report submitted to the Ordinary Meeting of Council on Monday 29 April 2019

RP-6

RP-6 Model Code of Conduct and Administrative Procedures

Author: Ingrid Hensley

General Manager: Peter Thompson

Summary:

The 2018 Model Code of Conduct for Local Councils in NSW and the associated Procedures for the Administration of the Model Code of Conduct for Local Councils in NSW were prescribed on 14 December 2018. This Report provides an overview of the major changes from the existing Code of Conduct and proposes the public exhibition of an updated Codes of Conduct and associated Procedures for the Administration of the Code of Conduct.

Recommendation

That Council:

a endorse the draft Code of Conduct and draft Administrative Procedures for the Code of Conduct, that is to be placed on public exhibition for a period of 28 days from 30 April 2019 to 27 May and invite public submissions until 27 May on the draft Code of Conduct and Administrative Procedures

b receive a further report following the exhibition and submission period:

i addressing any submission made in respect of the draft Code of Conduct and draft Administrative Procedures for the Code of Conduct

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

Report

The new 2018 Model Code of Conduct (“Model Code”) and Procedures for the Administration of the Model Code of conduct for Local Councils in NSW (“Procedures”) was prescribed on 14 December 2018. The Model Code consolidates the conduct obligations for council officials into a single statutory instrument and is intended to provide more clarity regarding obligations under the Code.

Councils have six months from the date of prescription (14 December 2018 – 14 June 2019) to adopt a Code of Conduct and Procedures, based on the prescribed Models.

Key changes include:

· New standards relating to discrimination and harassment, bullying, work health and safety, behaviour at meetings, access to information and maintenance of council records

· New rules governing the acceptance of gifts, including mandatory reporting

· Integrating the pecuniary interest provisions previously contained in the Local Government Act 1993 (the Act) and Regulation

· A new ongoing disclosure requirement for councillors and designated persons, requiring disclosure of new interests in returns within three months of becoming aware of them

· Requirement that councillors disclose in their returns of interests whether they are a property developer or a close associate of a property developer

Some key changes to the Procedures include;

· Revised definition of what is and what is not a code of conduct complaint

· Clearer guidance on what complaints can be declined at the outset

Code of conduct complaints must be assessed against the standards prescribed under the version of the council’s code that was in force at the time the conduct the subject of the complaint is alleged to have occurred. In addition, complaints about staff must be managed in accordance with the relevant industrial instrument or employment contract.

In adopting a new code of conduct and procedures, councils may include provisions that are supplementary to those contained in the Model Code of Conduct and Procedures. Councils may also impose more onerous requirements under their adopted codes of conduct than those prescribed under the Model. However, a council’s adopted code must not dilute the standards prescribed under the Model.

Following from the above, the previously released consultation version of the Model Code of Conduct issued on 5 September 2018 included provisions governing the use of social media, which have since been removed. However, councils can still choose to adopt this provision as a supplementary provision of their Code of Conduct. Following a consultation process this has not been included in the proposed draft.

The adopted code of conduct may also include provisions that supplement the Model Code of Conduct and that extend its application to persons that are not “council officials” for the purposes of the Model Code of Conduct, for example volunteers, contractors and members of wholly advisory committees.

In relation to the above, it is recommended the application of Council’s Code of Conduct, with the exception of Parts 4 and 5, be extended to wholly advisory committees and in-house volunteers. This has been achieved in the attached Draft by amending the definitions and including an additional paragraph in the introduction. Part 7 of the Model Code of Conduct has also been extended to apply to Council committee members and volunteers and the provisions modified accordingly.

Although the extended application above does not form part of Council’s current Code Conduct it has been the practice to advise those groups and individuals of their conduct requirements, consistent with the Code of Conduct. Thus, while participating in Council matters members of those wholly advisory committees, including, for example, community representatives on sub-committees and working parties in addition to volunteers engaged directly by Council, have been required to maintain the standards of professional behaviour reflected in the Code of Conduct.

To date this has been achieved through various means, including Terms of Reference for committees, the Volunteer Handbook and the Appointment of Organisation, Community and Individual Citizen Members to Council Policy (Pol 117). This approach has been to maintain and promote confidence and trust in the work of Council within the local government area.

Therefore, extending the application of the draft Code of Conduct and Procedures in the manner described above provides an opportunity to give greater clarity regarding the obligations of those individuals and groups, formalise current practice and ensure consistency with existing documents and processes. The recommendation has not been extended to Parts 4 and 5 as those Committees and persons do not have any delegated functions and persons are often appointed to those committees specifically because they have an interest in a particular matter and belong to a special interest group with specialised skills and/or experience and associated specific interests.

It is not proposed to extend the Code of Conduct to contractors. Council has a Business Ethics Brochure that is provided to all contractors through Council’s RFT process. The purpose of that Statement is to define the principles of conduct that are expected of Council and its private sector contractors, suppliers, consultants, tenderers or business partners to ensure mutual integrity and professionalism. It also serves as a statement of Council’s values and systems of accountability with an expectation that all contractors act in accordance with that statement and related policies and guidelines and maintain the highest standards of ethics and accountability in their dealings with Council. Contractors are also expected to make sub-contractors they employ aware of the statement and its obligations.

Financial Implications

There will be costs incurred in delivering training to all staff, Councillors and council officials, including engaging an external provider to deliver face-to-face training to councillors, executive staff and those with designated complaints handling and other roles. The estimated costs for this training are anticipated to be between $3,000 and $4,500 (plus GST) and will be jointly funded from within Councillors Professional Development budget ($18,000 annual budget) and from Council’s overall staff learning and development budget allocation.

Council’s Code of Conduct Administrative Procedures provide that Council is to report Model Code of Conduct complaint statistics to the Office of Local Government (OLG) within three months of the end of September each year. Part of that reporting includes the total cost of dealing with the code of conduct complaints made about councillors and the general manager within the period. The costs for the last three reporting periods are as follows.

1 September 2015 – 31 August 2016 $5,000

1 September 2016 – 31 August 2017 $3,000

1 September 2017 – 31 August 2018 $0

Policy and Legislation

Local Government Act 1993 (NSW)

Local Government (General) Regulation 2005

Model Code of Conduct for Local Government Councils in NSW (December 2019)

Section 440 of the Act requires every council (including county councils) and joint organisation to adopt a code of conduct that incorporates the provisions of the Model Code of Conduct.

The Model Code of Conduct sets the minimum standards of conduct for council officials and enhances public confidence in local government. It is prescribed by regulation to assist council officials to understand and comply with the standards of conduct that are expected of them; enable them to fulfil their statutory duty to act honestly and exercise a reasonable degree of care and diligence.

Following completion of the public exhibition and submission period it is proposed Council include a recommendation that the current Gifts and Benefits Policy (POL 107) be rescinded. Internal review of that Policy has considered it no longer necessary given the expanded provisions within the new proposed draft Model Code of Conduct and that it would be a duplication of those provisions. However, it is not recommended that Policy be rescinded until the new Code of Conduct and Procedures are adopted. Council’s internal procedures will be reviewed, including, for example, ensuring clear internal mechanisms for reporting and recording gifts and benefits. The Conflicts of Interest Policy (POL 112) is also currently under review.

Link to Strategic Plan

Community Leadership and Collaboration

Objective: We have strong leadership

Outcome: We are accountable and transparent

Risk Management Issues for Council

Council’s current Code of Conduct remains in place until the new Code is adopted.

If a council fails to adopt a new Code of Conduct and Procedures based on the new Model Code of Conduct and Procedures within six months of their prescription, the provisions of the new Model Code and Procedures will automatically override any provisions of a council’s adopted code of conduct and procedures that are inconsistent with those contained in the Model Code and Procedures through the operation of sections 440(4) and 440AA(4) of the Act (unless the inconsistent provisions of a council’s adopted code of conduct are more onerous than those contained in the Model Code).

There is a risk that failure to adopt a new Code of Conduct by 14 June 2019 may lead to confusion in relation to the provisions that apply to Councillors, staff and delegates from that date. To mitigate this risk, it is sought that Council endorse, publicly exhibit and adopt a new Code of Conduct prior to 14 June 2019.

Internal / External Consultation

Following the release of the revised Model Code of Conduct and Administration Procedures the Model Code of Conduct a workshop was held with Councillors and Executive staff on 4 March 2019, to provide an overview of the key changes and provide information about the intention of those changes.

Although the Code is mandatory and there are no provisions in the Act relating to the public exhibition of a draft Code of Conduct prior to adoption by Council, there was support in the Workshop for giving public notice of the draft code and exhibiting it publicly. Therefore, Council’s Code of Conduct will be placed on public exhibition for a period of not less than 28 days during which submissions may be made to the Council. A further report will be made to Council at the end of the public exhibition and submission period.

The draft Code and Administrative Procedures were also reviewed by a cross-section of staff across the organisation through the Corporate Review Committee.

The Office of Local Government NSW reviewed the draft Code and Procedures, particularly in relation to their extension to in-house volunteers and wholly advisory committee members. Although it is noted the Office of Local Government is not in a positon to endorse a council’s code of conduct or procedures, as it is ultimately up to Council to adopt a code and procedures that comply with the requirements under sections 440 and 440AA of the Act.

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

Involve

Collaborate

Attachments

1 ⇩.	Draft Administrative Procedures for the Code of Conduct 2019 – Provided under separate cover
2 ⇩.	Draft Wagga Wagga City Council Code of Conduct 2019 - Provided under separate cover

Item Number

Fee Name

2018/19 Adopted Fee

2019/20 Public Exhibition Fee

2019/20 Final Proposed Fee

Basis

0029

Car Rental Operators – use of Car Park

To be invoiced monthly for each time the issued swipe cards are used by individual car rental operators

$0.50

Each use

Reports submitted to the Ordinary Meeting of Council to be held on Monday 29 April 2019.

Present

The Mayor, Councillor Greg Conkey OAM

Councillor Yvonne Braid OAM

Councillor Paul Funnell

Councillor Dan Hayes

Councillor Vanessa Keenan

Councillor Rod Kendall

Councillor Tim Koschel

Councillor Kerry Pascoe

Councillor Dallas Tout

In Attendance

Director Community (Mrs J Summerhayes)

Director Finance (Mrs N Te Pohe)

Acting Director Commercial Operations (Mr R Shah)

Manager Audit, Risk & Governance (Ms I Hensley)

Manager City Strategy (Mr T Kell)

Manager Executive Support (Mr S Gray)

Manager Operations (Mr S Otieno)

Manager Technical & Strategy (Mr P Ross)

Manager City Development (Mr P O’Brien)

Senior Project Manager (Mr D Woods)

Development Assessment Coordinator (Mr C Collins)

Strategic Asset Planner (Parks & Recreation) (Mr B Creighton)

Communications & Engagement Officer (Mr J Lang)

Governance Officer (Ms B King)

Audit, Risk and Governance Officer (Mrs S Karpanen)

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

An apology for non-attendance was received and accepted for the General Manager, Mr Peter Thompson and Director Commercial Operations, Ms Caroline Angel on the Motion of Councillors D Hayes and P Funnell.

CARRIED

LEAVE OF ABSENCE

19/097 RESOLVED:

On the Motion of Councillors V Keenan and K Pascoe

That a leave of absence for Councillor R Kendall be granted from 1 June to 30 June 2019 (inclusive).

CARRIED

Confirmation of Minutes

CM-1 ORDINARY COUNCIL MEETING - 25 MARCH 2019

19/098 RESOLVED:

On the Motion of Councillors D Hayes and K Pascoe

That the Minutes of the proceedings of the Ordinary Council Meeting held on 25 March 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

Janice Summerhayes declared a Non-Significant, Non-Pecuniary Interest in RP-1 - DA17/0572 for 9 Lot Subdivision at Genista Place, Springvale NSW 2650 the reason being that she lives in a neighbouring suburb and remained in the chamber during its consideration.

Councillor R Kendall declared a Significant, Non-Pecuniary Interest in CONF-2 RFT2019-29 ROAD REHABILITATION MUNDOWY LANE, LOCKHART RD & OLD NARRANDERA RD the reason being that a Director of one of the tenderers is a business associate and vacated the chamber during its consideration.

Councillor P Funnell declared a Significant, Non-Pecuniary Interest in CONF-2 RFT2019-29 ROAD REHABILITATION MUNDOWY LANE, LOCKHART ROAD & OLD NARRANDERA ROAD the reason being that he lives on Mundowy Lane and vacated the chamber during its consideration.

Councillor P Funnell declared a Significant, Non-Pecuniary Interest in RP-2 DA17/0691 - Childcare Centre at 24 Higgins Avenue, Wagga Wagga, Lot 10 DP225843 the reason being that he has engaged the services of the designer for renovations at his property and vacated in the chamber during its consideration.

Councillor V Keenan declared a Non-Significant, Non-Pecuniary Interest in RP-1 DA17/0572 for 9 Lot Subdivision at Genista Place, Springvale NSW 2650 the reason being that one of the Directors of the applicants was her accountant approximately 5 years ago and remained in the chamber during its consideration.

Councillor K Pascoe declared a Non-Significant, Non-Pecuniary Interest in RP-2 DA17/0691 - Childcare Centre at 24 Higgins Avenue, Wagga Wagga, Lot 10 DP225843 the reason being that he is a builder for a block owned by his daughter in law opposite the proposed development and vacated the chamber during its consideration.

Councillor K Pascoe vacated the chamber, the time being 6:05pm.

Councillor P Funnell vacated the chamber, the time being 6:05pm.

PUBLIC DISCUSSION FORUM

RP-2 DA17/0691 - Childcare Centre at 24 Higgins Avenue, Wagga Wagga, Lot 10 DP225843.

· Mr Louis Berrigan - Speaking against the report

· Mr Glenn Sewell, Sewell Design – Speaking in favour of the report

Councillor P Funnell re-entered the chamber, the time being 6:20pm.

Councillor K Pascoe re-entered the chamber, the time being 6:20pm.

M-2 TRAFFIC COMMITTEE MEETING MINUTES 14 MARCH 2019

· Steven Keene, Murrumbidgee Turf Club – Speaking in favour of the report

PROCEDURAL MOTION - CHANGE OF STANDING ORDERS

19/099 RESOLVED:

On the Motion of Councillors T Koschel and D Hayes

That Council bring forward consideration of the following reports to follow Public Discussion Forum:

· RP-2 DA17/0691 - Childcare Centre at 24 Higgins Avenue, Wagga Wagga, Lot 10 DP225843

· M-2 TRAFFIC COMMITTEE MEETING MINUTES 14 MARCH 2019

CARRIED

RP-2 DA17/0691 - Childcare Centre at 24 Higgins Avenue, Wagga Wagga, Lot 10 DP225843

Councillor K Pascoe declared a Non-Significant, Non-Pecuniary interest and vacated the chamber, the time being 6:26pm.

Councillor P Funnell declared a Significant, Non-Pecuniary Interest and vacated the chamber, the time being 6.26pm

19/100 RESOLVED:

On the Motion of Councillors D Hayes and R Kendall

That Council approve DA17/0691 for a child care centre at Lot 10 in DP225843, 24 Higgins Avenue, Wagga Wagga NSW 2650 subject to conditions outlined in the Section 4.15 assessment report for DA17/0691.

CARRIED

RECORD OF VOTING ON DEVELOPMENT OR PLANNING MATTERS - SECTION 375A(3) LOCAL GOVERNMENT ACT 1993

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

Councillor K Pascoe re-entered the chamber, the time being 6:34pm.

Councillor P Funnell re-entered the chamber, the time being 6:34pm.

M-2 TRAFFIC COMMITTEE - 14 MARCH 2019

A Motion was moved by Councillors D Hayes and R Kendall

That Council:

a receive the minutes of the Traffic Committee Meeting held on 14 March 2019

b endorse the recommendations of the Traffic Committee

c approve the budget variations included in this report

An AMENDMENT was moved by Councillors P Funnell and Y Braid

That Council defer consideration TRAFFIC COMMITTEE - 14 MARCH 2019 until the 29 April 2019 Ordinary Council meeting.

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

The Amendment on being put to the meeting was LOST.

19/101 RESOLVED:

On the Motion of Councillors D Hayes and R Kendall

That Council:

a receive the minutes of the Traffic Committee Meeting held on 14 March 2019

b endorse the recommendations of the Traffic Committee

c approve the budget variations included in this report

d receive further clarification from the General Manager in relation to the quorum of this Committee

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

NOTICES OF MOTIONS OF RESCISSION

NOR-1 NOTICE OF RESCISSION - WAGGA WAGGA CITY COUNCIL CRIME PREVENTION WORKING GROUP

19/102 RESOLVED:

On the Motion of Councillors T Koschel and P Funnell

That Council:

a rescind Resolution No. 19/086 Wagga Wagga City Council Crime Prevention Group, which reads as follows:

That Council:

a establish a Wagga Wagga City Council Crime Prevention Working Group

b endorse the Wagga Wagga City Council Crime Prevention Working Group Terms of Reference as tabled with this report

c invite the identified stakeholders outlined in the Terms of Reference document with the following additions to join as members to the Wagga Wagga City Council Crime Prevention Working Group

i two additional community representatives with at least one under the age of 25 at the date of application

ii three Councillors in addition to the Mayor

d advertise an expression of interest process to appoint the community members on to the Wagga Wagga City Council Crime Prevention Working Group

b establish a Wagga Wagga City Council Crime Prevention Working Group

c endorse the Wagga Wagga City Council Crime Prevention Working Group Terms of Reference provided under separate cover with the following amendments to the voting members:

i two additional community representatives with at least one being under the age of 25 at the date of application

ii three Councillors in addition to the Mayor

iii one representative from Neighbourhood Watch

d invite the identified stakeholders outlined in the Terms of Reference document and above to join as members to the Wagga Wagga City Council Crime Prevention Working Group

e advertise an expression of interest process to appoint the community members

CARRIED

RECORD OF VOTING ON THE MOTION

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

PROCEDURAL MOTION - ENGLOBO

19/103 RESOLVED:

On the Motion of Councillors R Kendall and D Hayes

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

· Items where councillors wish to speak

· Items where no councillors wish to speak

· Confidential

· Matter of urgency

· Closure of Meeting

That RP-1, RP-3, RP-5 and CONF-1 be adopted as recommended in the business papers.

CARRIED

Reports from Staff

RP-1 DA17/0572 for 9 Lot Subdivision at Genista Place, Springvale NSW 2650

19/104 RESOLVED:

On the Motion of Councillors R Kendall and D Hayes

That Council approve DA17/0572 for 9 Lot Subdivision at Genista Place, Springvale NSW 2650 subject to conditions outlined in the Section 4.15 assessment report for DA17/0572 including a deferred commencement condition requiring Council and the developer to execute the ‘Genista Place Planning Agreement’ and including any amendments detailed in the recommendations contained in this report.

CARRIED

RECORD OF VOTING ON DEVELOPMENT OR PLANNING MATTERS - SECTION 375A(3) LOCAL GOVERNMENT ACT 1993

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 DA17/0691 - Childcare Centre at 24 Higgins Avenue, Wagga Wagga, Lot 10 DP225843 was moved forward for the public discussion forum.

RP-3 Evocities extension of MOU

19/105 RESOLVED:

On the Motion of Councillors R Kendall and D Hayes

That Council:

a “sit out” the current program for the 2019/20 Evocities campaign and investigate how we might monitor the actual benefit of the campaign to regional cities

b authorise the General Manager to write to the Steering Committee informing them of Council’s approach

c continue the budget allocation that would have been for Evocities for targeting businesses to relocate to Wagga Wagga highlighting the opportunities for growth and expansion

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-4 RIVERSIDE STAGE 2 - CONCEPT PLAN

19/106 RESOLVED:

On the Motion of Councillors D Hayes and V Keenan

That Council:

a receive the Riverside Stage 2 Concept Plan

b undertake community and stakeholder engagement on the Riverside Stage 2 Concept Plan from 10 April 2019 to 1 June 2019

c receive a further report following the engagement process:

i addressing the feedback received in respect to the Riverside Stage 2 Concept Plan

ii proposing adoption of the Riverside Stage 2 Concept Plan unless there are any recommended amendments deemed to be substantial that may require further community and stakeholder engagement

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 Wagga Wagga Local Infrastructure Contributions Plan 2019 - 2034

19/107 RESOLVED:

On the Motion of Councillors R Kendall and D Hayes

That Council:

a notes that the stakeholder engagement process and public submissions received have been utilised to develop the draft Wagga Wagga Local Infrastructure Contributions Plan 2019 – 2034

b adopts the draft Wagga Wagga Local Infrastructure Contributions Plan 2019 – 2034

c notes that the document will be designed to ensure it’s reflective of Wagga Wagga and surrounds, and the maps will be reformatted during this design stage

d authorise the General Manager or their delegate to make minor amendments to the Wagga Wagga Local Infrastructure Contributions Plan 2019 – 2034 provided that where amendments need to occur that change the intent, impact on the stakeholders or result in a conflict with other strategic documents, the proposed changes are to be reported to Council and placed on public exhibition prior to being implemented

e authorise the General Manager or their delegate to send a copy of the Wagga Wagga Local Infrastructure Contributions Plan 2019 – 2034 to the Minister as soon as practicable, in accordance with Section 7.18(4) of the Environmental Planning and Assessment Act 1979

f repeal the City of Wagga Wagga Section 94 Contributions Plan 2006 – 2019 and the City of Wagga Wagga S94A Levy Contributions Plan 2006

g notes that an advertisement will be paced in the local newspaper to advise the community that the Wagga Wagga Local Infrastructure Contributions Plan 2019 – 2034 will take effect from 1 July 2019 in accordance with Section 31 of the Environmental Planning and Assessment Regulation 2000

h update Wagga Wagga City Council’s Long Term Financial Plan with the Wagga Wagga Local Infrastructure Contributions Plan 2019 – 2034

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-6 REROC MEMBERSHIP

19/108 RESOLVED:

On the Motion of Councillors D Tout and D Hayes

That Council:

a discontinue its membership with the Riverina Eastern Regional Organisation of Councils (REROC) at the end of the 2018/19 Financial Year

b provide written notice to REROC of this decision and thank them for their support over a long period of time

c delegate authority to the Mayor and General Manager to negotiate an exit from REROC

d provide in principle support in becoming a full member of the Riverina Joint Organisation

i delegate authority to the Mayor and General Manager to finalise negotiations with the Riverina Joint Organisation with the intent of becoming a full member

e approve the budget variation/s as detailed in the Financial Implications section of 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 Airport Advisory Committee Meeting - 6 February 2019

19/109 RESOLVED:

On the Motion of Councillors P Funnell and D Hayes

That Council receive the minutes of the Airport Advisory Committee Meetings held on 6 February 2019.

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 TRAFFIC COMMITTEE - 14 MARCH 2019 was moved forward for the public discussion forum.

QUESTIONS/BUSINESS WITH NOTICE

The following Questions/Business with Notice will be addressed in the next available Business paper.

1. Councillor P Funnell received feedback from the community in regards to Wilks Park and its current lack of greenery. He requested that Wilks Park be considered in regards to enhancement of its aesthetics.

2. Councillor P Funnell requested what cost would be incurred to Council for a by-election if a Councillor was to leave prior to the end of term.

3. Councillor D Hayes enquired:

· if youth were specifically asked to contribute to the Bolton Park Master Plan

· are there any plans to improve the intersecting roads onto the roundabout located at the Bunnings Warehouse entry

· are the road signs leading from Tumbarumba Road to the Gregadoo East Road turn off suitable for the amount of traffic and current speed limit

· There is a sign located at Tooles Creek Bridge on Tumbarumba Road that states only one truck at a time allowed (to cross the bridge) and he raised the concern if the bridge is located on a bend could this be a potential obstruction for truck drivers who are making this judgement call

4. Councillor V Keenan asked for the costings involved for Councils defence with the Land and Environment Court for 199 Gurwood street appeal.

5. Councillor K Pascoe raised concerns with the Crooked Creek bridge and its usage by school children. He stated that due to increased traffic and construction works this has pushed the walkway further out, the current walkway is quite narrow and the safety barriers on the bridge need reviewing due to the height of the drop on the other side of the barrier.

6. Councillor T Koschel requested an assessment be conducted for a possible pedestrian crossing to be placed on Lake Street near Lake Albert Public School due to the high volume of vehicles using this street and the school children needing to cross this road during peak times.

7. Councillor D Tout attended the Strum All Ages Gig which was an event organised by youth for the youth of Wagga Wagga. He requested that a letter of congratulations be sent in regards to the success of the event and the positive value of funding put towards the event supplied through Council Grants Program.

closed COUNCIL

19/110 RESOLVED:

On the Motion of Councillors V Keenan and R Kendall

That the Council now resolve itself into a Closed Council, the time being 7.39pm.

CARRIED

AT THIS STAGE OF THE MEETING THE PRESS AND PUBLIC GALLERY RETIRED FROM THE COUNCIL MEETING.

Confidential Reports

CONF-1 RFT2019-17 CONCRETE WORKS

19/111 RESOLVED:

On the Motion of Councillors R Kendall and D Hayes

That Council:

a accept the offers of Burgess Earthmoving Pty Ltd (ABN:82 002 974 496), Damien Elliott T/a Elliott’s Concreting (ABN:25 270 641 312) and S & K Kenyon Pty Ltd (ABN:61 001 592 909) for the provision of concrete works in the schedule of rates supplied with each submission

b authorises the General Manager or their delegate to enter into a contract with Burgess Earthmoving Pty Ltd (ABN:82 002 974 496), Damien Elliot T/a Elliott’s Concreting (ABN:25 270 641 312) and S & K Kenyon Pty Ltd (ABN:61 001 592 909) for the provision of concrete works

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

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

CONF-2 RFT2019-29 ROAD REHABILITATION MUNDOWY LANE, LOCKHART ROAD & OLD NARRANDERA ROAD

Councillor P Funnell declared a Significant, Non-Pecuniary Interest and vacated the chamber, the time being 7.41pm.

Councillor R Kendall declared a Significant, Non-Pecuniary Interest and vacated the chamber, the time being 7.41pm.

19/112 RESOLVED:

On the Motion of Councillors D Hayes and T Koschel

That Council:

a accept the offer of Stabilised Pavements of Australia (ABN: 90 002 900 736) for the rehabilitation of Mundowy Lane, Lockhart Road and Old Narrandera Road in the lump sum amount of $856,823 + GST

b authorise the General Manager or their delegate to enter into a contract with Stabilised Pavements of Australia (ABN: 90 002 900 736) for the rehabilitation of Mundowy Lane, Lockhart Road and Old Narrandera Road

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

CARRIED

RECORD OF VOTING ON THE MOTION

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

Councillor P Funnell re-entered the chamber, the time being 7:44pm.

Councillor R Kendall re-entered the chamber, the time being 7:45pm.

CONF-3 RFT2019-28 PIPE NETWORK RELOCATION OF RISING MAIN

19/113 RESOLVED:

On the Motion of Councillors K Pascoe and R Kendall

That Council defer consideration of RFT2019-28 PIPE NETWORK RELOCATION OF RISING MAIN pending further information.

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

CONF-4 Potential Council Event

19/114 RESOLVED:

On the Motion of Councillors D Tout and T Koschel

That Council:

a host a Smart City event in Sydney in the latter part of 2019

b note that the General Manager or their delegate will enter into a contract with a management company to organise the event

c approve the income and expenditure budgets as detailed in the Financial Implications section of the report, noting a forecasted balanced position for Council for the event

d note that the results of the event, including the financial outcomes, will be reported back to Council

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

CONF-5 Farrer Road Gas Pipeline Relocation

19/115 RESOLVED:

On the Motion of Councillors R Kendall and T Koschel

That Council defer consideration of Farrer Road Gas Pipeline Relocation for further clarification.

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

Reversion to open COUNCIL

19/116 RESOLVED:

On the Motion of Councillors D Hayes and T Koschel

That this meeting of the Closed Council revert to an open meeting of the Council, the time being 8.08pm

CARRIED

THIS COMPLETED THE BUSINESS OF THE COUNCIL MEETING WHICH ROSE AT 8.10pm.

…………………………………………………..

MAYOR

Applicant	Mr Mark Churcher
Owner	HTZ Investments Pty Ltd Director – Joel Ian Berrigan
Development Cost	$5,313,154
Development Description	The applicant seeks approval for a 43 room 4 storey Hotel. The Hotel will consist of a ground floor made up of carpark, reception area, lift and stairs. The next three floors will consist of 42 Hotel rooms and 1 Managers residence.

1.	DA18-0284 Section 4.15 Assessment Report - Provided under separate cover
2 .	DA18-0284 Plans - Provided under separate cover
3 .	DA18-0284 Statement of Environmental Effects - Provided under separate cover
4 .	DA18-0284 Traffic Report - Provided under separate cover
5 .	DA18-0284 Redacted Submissions - Provided under separate cover

1 ⇩.	POL 058 Draft Temporary Event Signage Policy
2 ⇩.	Draft Temporary Event Signage Guidelines
3 ⇩.	Temporary Event Signage Design Mockup

1.	Draft Combined Delivery Program and Operational Plan 2019/20 - Provided under separate cover
2.	Draft Fees & Charges 2019/20 - Provided under separate cover
3.	Draft Long Term Financial Plan 2020/29 - Provided under separate cover

1 ⇩.	MLHD Excellence Awards Prospectus
2 ⇩.	MLHD Excellence Awards Guidelines