Agenda of Ordinary Meeting of Council

RP-2 Planning Proposal (LEP18/0005) to rezone land at 53 Plumpton Road and 108 Brindabella Drive, Tatton

Author: Adriaan Stander

Director: Michael Keys

Summary:

Council received a Gateway Determination from the NSW Department of Planning, Industry and Environment to proceed with the above-mentioned planning proposal subject to public consultation.

The purpose of the report is to provide feedback on the public consultation and submissions received. The report also requests adoption and gazettal of the amendment to the Wagga Wagga Local Environmental Plan 2010.

Recommendation

That Council:

a note the submissions received during the exhibition period for planning proposal LEP18/0005 with Council addendum

b adopt planning proposal LEP18/0005 with Council addendum to amend the Wagga Wagga Local Environmental Plan 2010

c gazette the plan and notify the NSW Department of Planning, Industry and Environment of the decision

Application details

Submitted planning proposal:

To amend the Wagga Wagga Local Environmental Plan 2010 (LEP)

· to rezone part of Lot 2 DP243027 and part of Lot 327 DP 1187026 from E2 Environmental Conservation and R5 Large Lot Residential to R1 General Residential

· to remove the minimum lot requirement of 0.2ha that applies to part of Lot 327 DP 1187026

Note – Since lodgement, the above lots have been consolidated into one lot, Lot 336 DP 1247818, being the subject of the proposal.

At its meeting of 25 February 2019, Council agreed to an amendment to the above proposal. The Gateway Determination issued reflects the changes Council agreed to.

Applicant and Land Owner

Matt Jenkins Builder Pty Ltd

Director: Matthew Jeremy Jenkins

Director: Jacqueline Louise Jenkins

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.

Report

The NSW Department of Planning, Industry and Environment has issued a Gateway Determination for a planning proposal which was previously presented to Council on 25 February 2019.

The planning proposal (as amended by Council) seeks the following:

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 326 DP 1178026 from E2 Environmental Conservation to R1 General Residential.

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

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

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

During the public consultation period, submissions were received from the Office of Environment and Heritage, Department of Industry (Water) and Natural Resources Access Regulator. A summary of the submissions and Council Officer response is provided within the Internal / External Consultation section below.

It is considered that the submissions have been addressed sufficiently and it is therefore recommended that Council adopt the planning proposal as exhibited.

Financial Implications

In accordance with Council’s 2018/19 Fees and Charges, a Medium LEP Amendment (medium complexity) attracts a total application fee 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.

Section 7.11 of the Environmental Planning and Assessment Act 1979 and the City of Wagga Wagga’s Section 94 Contributions Plan 2006-2019 / Levy Contributions Plan 2006 enables Council to levy contributions, where anticipated development will or is likely to increase the demand for public facilities.

Section 64 of the Local Government Act 1993, Section 306 of the Water Management Act 2000 as well as the City of Wagga Wagga’s Development Servicing Plan for Stormwater 2007 and/or City of Wagga Wagga Development Servicing Plan for Sewerage 2013 enable Council to levy developer charges based on the increased demands that new development will have on sewer and/or stormwater.

The Section 7.11 and Section 64 contribution applies and will apply to any future development consent on the land. The proponent also has the opportunity to enter into a voluntary planning agreement, however at the time of this report, no request has been received to enter into an agreement.

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.

Gateway reviews may be requested by Council or by the Applicant following a Gateway Determination by the Department of Planning, Industry and Environment before community consultation on the proposal has commenced. Neither Council or the Applicant has requested a review of the Gateway Determination.

Internal / External Consultation

The planning proposal was placed on public exhibition between 27 April 2019 to 25 May 2019 with an opportunity to make submissions until 8 June 2019 as per the community engagement 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

The planning proposal and accompanying exhibition material were made available for viewing by the public on Council’s website and at Council’s Customer Service Counter in the Civic Centre. Notices with factsheets were also provided to people living in the area.

During the public consultation period submissions were received from the Office of Environment and Heritage, Department of Industry (Water) and Natural Resources Access Regulator. No submissions were received from the general public or people living in the area.

A summary of the submissions and Council Officer response is provided below.

Office of Environment and Heritage (OEH)
Submission	Council’s comment
OEH recommends that Council should assess this new development (and all other proposed new development areas in the Major Overland Flow area) in a strategic manner within the current Wagga Wagga Major Overland Flow Floodplain Risk Management Study and Plan project to determine its appropriateness given the identified flood risks. If through this process it is determined that this development is appropriate and commensurate with the flood risks, there would be no impediment to its approval from a flooding perspective.	The planning proposal will be supported with an addendum that will elaborate on the compliance with Ministerial Direction 4.3 Flood Prone Land. Council considers the affectation as minor and that that it can be mitigated through appropriate design that will be addressed at development application stage. The overland flow flood modelling undertaken by WMA Water (as submitted as part of the planning proposal) 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. A copy of the flood study
Council should also note that the flood modelling originally developed to inform the WW MOFFRMS&P project and used in the site-specific Flood Impact Assessment (2018) is currently being updated to be consistent with the new Australian Rainfall and Runoff Guidelines 2016 (ARR16). As such, the defined flood risks at this site may change from that originally defined in the Wagga Wagga Major Overland Flow Flood Study (2011), the subsequent Model Update Report (2015) and subsequently used in the site-specific Flood Impact Assessment (2018). If Council considers there is an urgency to this decision, then the site-specific Flood Impact Assessment (2018) could be reviewed using the ARR16 updated modelling based on the Australian Rainfall and Runoff Guidelines 2016 that is currently being finalised. Council would need to decide if the inconsistent elements of the rezoning could be considered of “minor significance” with respect to flooding.	The Flood Impact Assessment prepared by WMAwater was prepared in accordance with the current endorsed city-wide overland flow flood study, being the Wagga Wagga Major Overland Flow Flood Study 2015. Council is in the process of updating the above in line with the Australian Rainfall and Runoff Guidelines 2016. This project is anticipated to be completed by February 2020. Council may decide to put the planning proposal on hold until the completion of this project, however given the minor nature of the overland flow on the lot, it is considered unreasonable to postpone the rezoning of the land. 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 applicant also indicated that if the updated MOFFS Study be adopted by Council by the time of development application lodgement they would ensure that the flood modelling and results were updated to reflect this and incorporated into the design.
Natural Resources Access Regulator (NRAR)
Submission	Council’s comment
The planning proposal identifies that the subject site 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 WMA Water determined the off-site flood level impact is relatively minor. The development intensification at the site is likely to increase the water loading via irrigation with potential mobilisation of salt into the groundwater with on-site and off-site impacts. Conditions to ensure overwatering does not occur are a key element in these controls, and the use of monitoring bores on-site is recommended for ongoing management.	Agreed. This can be addressed as part of a future development application and conditions of approval.
NRAR supports vegetated buffers around the drainage lines on the site in accordance with the “Guidelines for Riparian Corridors on Waterfront Land (DPI 2012. It is recommended these guidelines be reviewed in finalising the subdivision layout. NRAR advises that the unnamed watercourse known as ‘Stringybark Creek’ (which has been rerouted to the other side of Plumpton Road) is a fourth order watercourse. DPI Water’s Guidelines for Riparian Corridors on Waterfront Land recommend a vegetated buffer setback from the high bank to 40m for fourth order watercourses. It is recommended the ability to address these buffer distances in any potential future infrastructure layout be reviewed and acknowledged for future subdivision planning.	The submission from NRAR recommends vegetated buffers around drainage lines on the site. In this regard, it is noted there are no mapped drainage lines within the subject land. The land historically was bisected by an unnamed watercourse; however, as outlined in the Planning Proposal, the creek line was re-routed through the adjacent golf course on the eastern side of Plumpton Road. The request for a 40m vegetation buffer is therefore considered unreasonable.
It is noted in the planning proposal that, ‘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 is dedicated to Council as part of a future subdivision application’. The proposed stormwater management strategy needs to demonstrate that any proposed future subdivision does not increase post development runoff velocity when compared to pre development. The proposal identifies the existing dam on the site currently has an important role in stormwater mitigation of the Tatton neighbourhood however, no current volumes have been specified for the catchment area that the dam currently services. NRAR advises any dams which are proposed to retain water will need to be sized in accordance with the Maximum Harvestable Rights Dam Capacity based on the area of land in the reserves. Further consideration of the impacts of retaining water in the drainage lines where salinity is a potential issue is recommended.	Any future development would comply with this requirement as it is a standard expectation of Council. The existing dam on the site currently has an important role in stormwater mitigation of the Tatton neighbourhood; however, no volumes have been specified for the catchment area that the dam currently services. It is considered that this matter would be addressed at development application stage, where detailed engineering plans and details would be prepared to demonstrate adequate stormwater management arrangements are in place. The dam shall be incorporated into the strategy for the site and dedicated to Council as part of a future subdivision application.
Department of Industry (water)
Submission	Council’s comment
There is reticulated water and sewerage. All houses should be connected to those to avoid issues with access to sufficient groundwater (competing demand) and potential contamination from the septic system	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.

Attachments

1.	Revised addendum to the planning proposal - Provided under separate cover
2.	Applicant's response to submissions - Provided under separate cover
3 .	Submission - Department of Industry (water) - Provided under separate cover
4 .	Submission - Office of Environment and Heritage - Provided under separate cover
5 .	Submission - Natural Resources Regulator. - Provided under separate cover
6 .	Council report of 25 February 2019 - Provided under separate cover
7 .	Council assessment report Pre-Gateway Determination - Provided under separate cover
8 .	Planning proposal and flood assessment report submitted by Proponent - Provided under separate cover

Report submitted to the Ordinary Meeting of Council on Monday 26 August 2019

RP-3

RP-3 Draft Planning Proposal (LEP19/0004) to amend the Wagga Wagga Local Environmental Plan 2010 - Plumpton Road, Wagga Wagga

Author: Crystal Golden

Director: Michael Keys

Summary:

Council is in receipt of a planning proposal (LEP19/0004) to amend the Wagga Wagga Local Environmental Plan 2010. The proposal is seeking to amend the minimum lot size requirements for land located on Plumpton Road.

An assessment of the application concluded that the planning proposal may proceed and recommends a request be submitted for a Gateway Determination from NSW Department of Planning, Industry and Environment.

Recommendation

That Council:

a support planning proposal LEP19/0004 and the Council addendum to amend the Wagga Wagga Local Environmental Plan 2010

b submit planning proposal LEP19/0004 and the Council addendum to the NSW Department of Planning, Industry and Environment for Gateway Determination

c receive a further report after the public exhibition period:

i addressing any submissions made in respect of planning proposal LEP19/0004 and the Council addendum

ii proposing adoption of the planning proposal LEP19/0004 and the Council addendum unless there are any recommended changes deemed to be substantial and requiring a further public exhibition period

Applicant Details:

Submitted Proposal:	Amendment to Wagga Wagga Local Environmental Plan 2010 to reduce the minimum lot size from 2,000 square metres to 1,400 square metres for various lots on Plumpton Road, Brindabella Drive and Belmore Place in Springvale and Tatton
Applicant	Salvestro Planning, for Sandra Schulz
Land Owners:	Various land owners (provided under confidential cover)

Report

Council is in receipt of an application to amend the Wagga Wagga Local Environmental Plan 2010 (LEP) to reduce the minimum lot size for various lots on Plumpton Road, Brindabella Drive and Belmore Place from 2,000 square metres to 1,400 square metres. The proposed minimum lot size amendments are shown in the map below.

The application and detailed assessment report are attached to this report.

Mapping note: The amendment to the minimum lot size results in a residue of lot size applicable to two lots north of Brindabella Drive. This minimum lot size provision is being dealt with as part of planning proposal LEP18/0005.

Site and Location

The site is located south of the city on a sub-arterial road that separates the Tatton and Lake Albert suburbs.

The site is an existing rural residential area (R5 Large Lot Residential zone) with new subdivisions occurring in the area. The site is located directly opposite 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 the city, providing opportunities for households to relocated from other areas or new households to form locally. At a growth rate of 1.2%, the population of Wagga Wagga would 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 hectares.

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

Whilst most of the 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 is 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, land owners 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 enough justification for a planning proposal to proceed prior to completion of the strategic work.

3. Consistency with strategic directions

Even though the planning proposal is not supported by a local housing strategy endorsed by the NSW Department of Planning and Environment, the Wagga Wagga Spatial Plan 2013-2043, endorsed by the NSW Department of Planning and Environment, identifies several approaches to addressing land demand for urban purposes in the city and encourages additional housing opportunities within urban areas where existing services and amenities are already provided. The proposal to rezone the land is based on site opportunities to optimise the land use of the available land that is currently serviced by public infrastructure and accessible to existing local community facilities and therefore considered generally 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 Local Strategic Planning Statements, Section 9.1 Ministerial Directions as well as relevant State Environmental Planning Policies.

4. Justification for a reduced minimum lot size provision

The applicant provided the following justification for the proposed reduction of minimum lot size:

“The subject land forms part of a defined precinct including land with frontage to Plumpton Road between Brindabella Drive and Springvale Drive. This precinct has a mixture of 0.2ha and 0.14ha minimum lot size development standards applicable to the land.

A continuation of the 0.14ha minimum lot size standard to apply to all land along Plumpton Road north to Brindabella Drive will assist in ensuring consistent large lot character and amenity is achieved.

The subject land has strong and convenient connections to essential infrastructure including sealed roads, pedestrian pathways, bicycle tracks, community centres, passive and active recreation areas. Sewer and stormwater reticulation networks are well established throughout the immediate neighbourhood.

The land’s close proximity to the Country Club Golf Course, Boat Club and Lake Albert are a strong locational attribute that reinforces it’s suitability for more intensive development.

Based on the above strategic and precinct analysis maps, the proposal would demonstrate:

· Consistency with the spatial form of this sector of the urban footprint

· Consistency with the subdivision pattern emerging for the surrounding area

· Opportunities to connect with essential linkages including open space, transport, community and infrastructure.

The proposal will assist in balancing the supply and type of residential land across the City as there is limited remaining stock of available land to develop at this density.

The inclusion of the above identified lots in a planning proposal would theoretically result in an additional 26 lots within the precinct. However, terrain and easement restrictions would more practically result in between 14-16 lots being created. This is a valuable contribution to local land supply.

Appropriate minimum lot size for the subject land has been considered in relation to key principles including:

1. General subdivision patterns in the local and surrounding area

2. Emerging subdivision patterns and local character attributes

3. Proximity to essential services

4. Lot usage and existing built improvements

5. Ensuring efficient use of limited land resources and essential infrastructure.”

Although the proposed amendment is not a direct result of a strategy identifying an appropriate minimum lot size for the wider area, it is acknowledged that the proposed minimum lot size is consistent with subdivision patterns in the area.

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 area is located within an existing urban environment and has access to existing services and infrastructure including roads, reticulated water and sewer. Other infrastructure networks and services, including public transport, waste management / recycling, health, education, child care, medical, 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 of the site.

A stormwater management strategy may be required to address any stormwater upgrade requirements.

Traffic access to Plumpton Road will be limited, however Belmore Place extends across the site providing access onto Brindabella Drive. Stormwater and traffic requirements will be addressed and conditioned at development application stage.

6. Major overland flow flooding

The eastern portion of the subject land is indicated to be affected by major overland flow flooding on Council’s mapping system.

The application considers flooding as part of 3.3.2 of the application and indicates that the affectation is relatively minor and may be mitigated through appropriate design and management of overland flows across the site, as has occurred with other adjoining sites. Current available flood model mapping indicates that the majority of the eastern part of the site is affected by overland flows during a 100-year storm event. The levels provided by the model range between 0.03 and 0.21 metres, which are considered a minor impact and manageable with appropriate civil design during subdivision and dwelling construction.

The application has not considered Ministerial Direction 4.3 Flood Prone Land. This direction requires planning proposals to achieve the following:

§ Consistency with NSW Flood Prone Land Policy and the principles of the Floodplain Development Manual 2005 (including the Guideline on Development Controls on Low Flood Risk Areas).

§ Not contain provisions that apply to the flood planning areas which:

- Permit development in floodway areas

- Permit development that will result in significant flood impacts to other properties

- Permit a significant increase in the development of that land

- Result in a substantial increase in the requirement for government spending on flood mitigation measures, infrastructure or services

- Permit development to be carried out without development consent

Any Gateway Determination will require consultation with Office of Environment and Heritage due to the major overland flow flooding affectation. As a result, the applicant may be required to undertake further studies. The existing zoning and minimum lot size would result in additional lots to what currently exists. The proposed changes will not significantly impact the number of lots in the area and can be managed.

The eastern portion of the subject land is indicated to be affected by major overland flow.

Conclusion

The planning proposal has been considered in respect to the benefits to the community and matters discussed in this report are all reflection of public interest and community expectations through strategic direction and policy guiding documents. With adequate information addressing constraints of the land, the proposal is be supported for the following reasons:

§ It complies with most of the provisions of the endorsed strategic documents, including the Riverina Murray Regional Plan 2036 and the Wagga Wagga Spatial Plan 2013-2043. Inconsistencies with flooding will need to be addressed.

§ The proposal meets the relevant Section 9.1 Ministerial Directions. More information is required to address direction 4.3 Flood Prone Land, which can be sought from the applicant after the Gateway Determination.

§ Addresses applicable State Environmental Planning Policies.

§ The planning proposal has general support, provided additional information would be provided to address flood hazard and risk.

Considering 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 subject to adequate information on flood hazard and risk being provided. It is proposed to seek additional information on flood hazard and risk from the applicant as part of the Gateway Determination.

Financial Implications

In accordance with Council’s 2018/19 Fees and Charges, a Medium LEP Amendment (medium complexity) attracts a total application fee of $15,000 (application was submitted during the 2018/19 financial year). The proponent has paid this application fee. There are no requirements to amend the Wagga Wagga Development Control Plan, therefore, the $2,000 fee for this type of amendment is not required.

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 minimum lot sizes for R5 Large Lot Residential Land.

Refusal of the application may result in a review. The applicant has the ability to request a review of Council’s decision by submitting the planning proposal to the NSW Department of Planning, Industry 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 has existing infrastructure capacity that can support the anticipated development outcome.

As the planning proposal involves land not owned by the applicant, up front preliminary consultation was completed to seek feedback from affected land owners. During this consultation period, no submissions were received.

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

Proposed formal public 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 ⇩.

Application - Planning Proposal (LEP19/0004) Plumpton Road

2 ⇩.

Assessment Report - Planning Proposal (LEP19/0007) Plumpton Road

3 .

Affected Land Owner details - Planning Proposal (LEP19/0004) Plumpton Road

This matter is considered to be confidential under Section 10A(2) of the Local Government Act 1993, as it deals with: personnel matters concerning particular individuals.

Report submitted to the Ordinary Meeting of Council on Monday 26 August 2019. RP-5

RP-5 Financial Performance Report as at 31 July 2019

Author: Carolyn Rodney

Director: Natalie Te Pohe

Summary:

This report is for Council to consider and approve the proposed 2019/20 budget variations required to manage the 2019/20 budget and Long Term Financial Plan, and details Council’s external investments and performance as at 31 July 2019.

Recommendation

That Council:

a approve the proposed 2019/20 budget variations for the month ended 31 July 2019 and note the balanced budget position as presented in this report

b approve the Potential Projects outlined within the report to be included in the 2019/20 Capital Works Delivery Program

c in accordance with Section 356 of the Local Government Act, provide financial assistance of:

i $2,000 to the Cork & Fork Festival 2019/20

ii $90 to the Legion of Mary

iii $95 to the PCYC Wagga Wagga OOSH

iv $655 to the Riverina Medical & Surgical Symposium

d 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

e note the details of the external investments as at 31 July 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 July 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 July, when compared to budget. This is mainly due to a strong performance by Council’s Floating rate note portfolio and Managed Fund.

Key Performance Indicators

OPERATING INCOME

Total operating income is 9% of approved budget, which is tracking on budget for the end of July (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 60%.

OPERATING EXPENSES

Total operating expenditure is 10% of approved budget and is tracking slightly higher than the budget for the full financial year.

CAPITAL INCOME

Total capital income is 2% 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 12% of approved budget. This approved budget does not include the 2018/19 carryover budgets and will be reflected in the August 2019 figures.

WAGGA WAGGA CITY COUNCIL STATEMENT OF FINANCIAL PERFORMANCE 1 JULY 2019 TO 31 JULY 2019
CONSOLIDATED STATEMENT
	ORIGINAL BUDGET 2019/20	BUDGET ADJ 2019/20	APPROVED BUDGET 2019/20	YTD ACTUAL EXCL COMMT'S 2019/20	COMMT'S 2019/20	YTD ACTUAL + COMMT'S 2019/20	YTD % OF BUD
Revenue
Rates & Annual Charges	(69,736,893)	0	(69,736,893)	(7,202,376)	0	(7,202,376)	10%
User Charges & Fees	(28,440,057)	(39,500)	(28,479,557)	(1,536,975)	0	(1,536,975)	5%
Interest & Investment Revenue	(3,774,001)	0	(3,774,001)	(559,011)	0	(559,011)	15%
Other Revenues	(3,053,633)	(11,100)	(3,064,733)	(461,161)	0	(461,161)	15%
Operating Grants & Contributions	(14,280,296)	0	(14,280,296)	(625,982)	0	(625,982)	4%
Capital Grants & Contributions	(56,263,733)	0	(56,263,733)	(893,043)	0	(893,043)	2%
Total Revenue	(175,548,613)	(50,600)	(175,599,213)	(11,278,547)	0	(11,278,547)	6%

Expenses
Employee Benefits & On-Costs	46,012,119	61,444	46,073,563	3,447,775	17,728	3,465,503	8%
Borrowing Costs	3,587,823	0	3,587,823	104,306	0	104,306	3%
Materials & Contracts	32,357,210	1,397,727	33,754,937	2,012,455	3,341,763	5,354,218	16%
Depreciation & Amortisation	34,843,073	0	34,843,073	2,903,589	0	2,903,589	8%
Other Expenses	13,015,295	(16,882)	12,998,413	1,744,169	60,098	1,804,267	14%
Total Expenses	129,815,520	1,442,289	131,257,809	10,212,294	3,419,589	13,631,883	10%

Net Operating (Profit)/Loss	(45,733,093)	1,391,689	(44,341,404)	(1,066,254)	3,419,589	2,353,336

Net Operating (Profit)/Loss before Capital Grants & Contributions	10,530,640	1,391,689	11,922,329	(173,210)	3,419,589	3,246,379

Capital / Reserve Movements
Capital Exp - Renewals	38,159,093	171,556	38,330,650	333,776	10,510,554	10,844,330	28%
Capital Exp - New Projects	38,571,777	77,835	38,649,611	100,698	3,391,006	3,491,704	9%
Capital Exp - Project Concepts	38,364,925	0	38,364,925	13,975	8,723	22,698	0%
Loan Repayments	3,380,744	0	3,380,744	281,729	0	281,729	8%
New Loan Borrowings	(21,222,532)	0	(21,222,532)	0	0	0	0%
Sale of Assets	(1,502,910)	0	(1,502,910)	(54,624)	(72,250)	(126,874)	8%
Net Movements Reserves	(15,174,931)	(1,641,080)	(16,816,011)	0	0	0	0%
Total Cap/Res Movements	80,576,166	(1,391,689)	79,184,477	675,554	13,838,033	14,513,587

	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	34,843,073	0	34,843,073	(390,700)	17,257,622	16,866,922

Add back Depreciation Expense	34,843,073	0	34,843,073	2,903,589	0	2,903,589	8%

Cash Budget (Surplus)/Deficit	0	0	0	(3,294,289)	17,257,622	13,963,333

Revised Budget Result - Surplus/(Deficit)

$’000s

Original 2019/20 Budget Result as adopted by Council

Total Budget Variations approved to date

Budget Variations for July 2019

Proposed Revised Budget result for 31 July 2019

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

*Budget Variation*		*Amount*		*Funding Source*	*Net Impact* *Fav/ (Unfav)*
*1 – Community Leadership and Collaboration*
Remediation Provision Report	$10.5K		Gravel Pit Restoration Reserve ($3.5K) Solid Waste Reserve ($3.5K) Sewer Reserve ($3.5K)		Nil
As part of the 2018/19 Financial Statements to be lodged October 2019, Council is required to calculate and account for remediation provisions in regards to Quarries, Sewerage treatment plants, the old Tarcutta Street gasworks site, and Waste Disposal Sites. Due to the highly technical skillset the calculations require, Council has engaged an expert in the field to undertake the calculations and compile a report which will be used in compiling the 2018/19 financial statements. It is proposed to fund the variation equally from the Gravel Pit Restoration Reserve, Solid Waste Reserve and Sewer Fund Reserves. This is an annual requirement and will be included as an ongoing item in the Long Term Financial Plan from 2020 onwards.

*4 – Community Place and Identity*
Mobile Cooks Galley Conservation Project		$40K		NSW Office Environment Heritage Grant ($20K) Regional Cultural Fund Grant ($7K) Works in Kind ($10K) Willans Hill Conservation Collection Budget ($3K)	Nil
Council has been successful in securing 50:50 grant funds from the NSW Office Environment Heritage (OEH) under the 2019-2021 NSW Heritage Grants – Caring for State Heritage Grants Program. The funds are to be used for the Mobile Cooks Galley Conservation Project. It is proposed to fund Councils matching portion from works in kind, the Regional Cultural Fund Grant and the Willans Hill Conservation Collection budget.
*5 – The Environment*
Mona Vale Bridge Renewal Palmer’s Road Bridge Renewal		$345K $299K		Federal Government Bridges Renewal Program ($322K) Bridge Replacement Reserve ($302K) Bridge Maintenance Budget ($20K)	Nil
Council has been successful in securing 50:50 grant funding under the Government Bridges Renewal Program Round 4 offer of funding. The funding is for Palmer’s Road Bridge and Mona Vale Road Bridge replacements, upgrading from timber to concrete. It is proposed to fund Council’s required portion from the Bridge Replacement Reserve and Bridge Maintenance budget. It is anticipated that each bridge will require $75K in 2019/20 for design, with the construction to be undertaken during 2020/21.
Implement Cycleways Program	$60K		RMS Grant Funding ($60K)		Nil
It is proposed to transfer the Implement Cycleways annual GPR funding from Potential Projects to the Delivery Program and remove the 50% allocation of RMS grant funding for 2019/20 and ongoing for the 10 years of the Long Term Financial Plan as this is not annually secured grant funding. These programmed cycleways works will be identified in consultation with the Strategic Parks and Recreation Division.
					Nil

Current Restrictions

Due to the finalisation of the 2018/19 financial year figures, reserve balances have not been included in this report.

Section 356 Financial Assistance Requests

Four Section 356 financial assistance requests have been received for the 26 August 2019 Ordinary Council meeting, which are shown below for Council’s consideration:

1. Cork & Fork Festival $2,000

The organiser of the Cork & Fork Festival has written to Council (see attached) requesting Council’s consideration of a waiver for the hire, waste and barrier setup fees for the use of the Civic Precinct for 4 x Cork & Festival events to be held on 25 October 2019, Friday 29 November 2019, Friday 7 February 2020 & Friday 6 March 2020 respectively.

The festival organisers in their attached letter note:

“My apologies for not making contact with you sooner. I want to thank you and Wagga Wagga City Council for the support you provided for last season Cork & Fork events at the Civic Theatre Precinct. Last season’s Cork & Fork Fest attracted over 1500 people to each event and approximately 15% of these were from out of town.

For the 2019/20 season we have scheduled 4 events at the Civic Theatre Precinct, again focusing on showcasing local produce, food and entertainment. The event will be free to attend and will primarily funded via the sales of Borambola Wines, Tuckerbox Beer & Cider.

The main objectives of this event are:

· Offering a free community event

· Showcases local produce, products and entertainment

· Offering a relaxed event that appeals across a broad spectrum of people

· Attracting Wagga locals and people living within 100 km radius of the city

While we are very keen to see the event continue, we would welcome support and input from WWCC to ensure it remains relevant. I know the council offers a The Major Events, Festivals and Films Sponsorship Program but our event spreads across the two periods of the year. Unfortunately, we missed the cut off for funding for the first period next year as we were unsure how to approach this application.

I would like to request that council consider supporting this event by:

1. Waiving the cost of venue hire and amenities ($885.00)

2. Provide rubbish bins and waste removal (same as what Albury Council offers)

3. Provide crowd barriers which define our licensed area and protect the attendees

Thank you for your continued support. Please do not hesitate to contact me if you wish to discuss further. I look forward to hearing from you.”

Council supported the 3 staged 2018/19 Cork & Fork Festival events by contributing to the costs of the above items i.e $3,180.

The 2018/19 Council contribution of $3,180 was funded from the Major Events Budget.

The 2019/20 cost of provision of these items for four events has been calculated to be approximately $3,714.

Community Directorate officers advise that it is not proposed in 2019/20 nor in the future to recommend proposals for funding from the Major Events Budget unless the respective event meets the Major Event Funding criteria.

The Major Events criteria is noted below :

The Major Events, Festivals and Films Sponsorship eligibility is broken into two tiers and following criteria:

Tier 1 – funding amount $15,001 to $25,000

Major Events, Festivals or Films that generate:

· Greater than $750,000 in economic impact

· Substantial tourism outcomes (over 6,000 event attendees)

· Potential for significant state, national and/or international exposure likely to result in increased visitation for the city

Tier 2 – Funding amount $3,001 to $15,000

Major Events, Festivals or Films that generate :

· Greater than $350,000 in economic impact

· Substantial tourism outcomes (over 1,000 event attendees)

· Potential for significant state, national and/or international exposure likely to result in increased visitation for the city.

The Community Services Directorate further advise that the Cork & Fork Festival does not meet the major event criteria and that there are no other available funds under their 2019/20 programs to fund this request.

Given the limited funds available in the general Fees and Charges waiver budget it is proposed that Council donate $2,000 to the event with the organisers requested to contribute the balance of estimated costs being $1,714.

As the event grows and establishes itself there is an expectation that Council contributions would reduce accordingly.

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

2. Legion of Mary $90

The Legion of Mary Not for Profit organisation has requested in their attached letter Council’s consideration of a waiver for the hire fees for the use of the Victory Memorial Gardens for their holding of the “Rosary in the Park “scheduled for the 12 October 2019.

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

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

3. PCYC – Wagga Wagga OOSH $95

The Police Citizens Youth Club (PCYC) Wagga Wagga Out of School Hours (OOSH) group has requested in their attached letter Council’s consideration of a waiver for the hire fees for the use of the Duke of Kent Oval on Monday 30 September 2019 for children’s sporting activities.

The above request aligns with Council’s Strategic Plan “Safe & Healthy” – Outcome: recreation is a part of everyday life “

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

4. Riverina Medical & Surgical Symposium $655

The Riverina Medical & Surgical Symposium (RMSS) has requested in their attached letter Council’s consideration of a waiver for the hire fees for the use of the Council Chambers on Saturday 31 August 2019 (setup half day Friday) to stage the third annual Medical & Surgical Symposium. The organisers of the event note that this event provides the opportunity for medical students, Registrars, GPs and Specialists from Wagga Wagga and the region to showcase valuable research undertaken during the year.

The above request aligns with Council’s Strategic Plan “Safe and Healthy Community – Outcome: Our health and support services meet the needs of our community”

Council provided financial assistance to the above group in 2018/19 by providing $900 to the staging of the 2018/19 Symposium (held over first weekend of September 2018).

Budget

The Section 356 general fees and charges financial assistance budget for the 2019/20 financial year is $48,123.50, of which $39,907 is already committed in the adopted 2019/20 Delivery and Operational Plan.

If the proposed financial assistance of $2,840 included in this report is approved, this would leave an unexpended budget of $5,376.50 for the remainder of the 2019/20 financial year, noting that there will be an ongoing review of savings undertaken during the year and a further allocation of funding would be submitted for Council’s consideration should the 2019/20 Fee waiver budget be exhausted prior to the end of the 2019/20 financial year.

Unallocated balance of S356 fee waiver financial assistance budget 2019/20	$8,216.50
Cork & Fork Festival	($2000)
Legion of Mary	($90)
PCYC - Wagga Wagga OOSH	($95)
Riverina Medical & Surgical Symposium	($655)
Balance of Section 356 fee waiver financial assistance budget for the remainder of the 2019/20 Financial Year	$5,376.50

Investment Summary as at 31 July 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 30/06/2019 $	Closing Balance Invested 31/07/2019 $	July EOM Current Yield %	July EOM % of Portfolio	Investment Date	Maturity Date	Term (mths)
*Short Term Deposits*
AMP	A-	2,000,000	2,000,000	2.65%	1.44%	3/06/2019	2/12/2019	6
AMP	A-	1,000,000	1,000,000	2.80%	0.72%	17/05/2019	13/11/2019	6
Australian Military Bank	NR	1,000,000	0	0.00%	0.00%	16/07/2018	16/07/2019	12
Australian Military Bank	NR	1,000,000	0	0.00%	0.00%	7/09/2018	8/07/2019	10
AMP	A-	1,000,000	1,000,000	3.00%	0.72%	6/03/2019	2/09/2019	6
AMP	A-	1,000,000	1,000,000	3.00%	0.72%	6/03/2019	2/12/2019	9
MyState	BBB	1,000,000	1,000,000	2.75%	0.72%	1/04/2019	1/04/2020	12
Suncorp-Metway	A+	2,000,000	2,000,000	2.26%	1.44%	28/05/2019	28/11/2019	6
*Total Short Term Deposits*		10,000,000	8,000,000	2.67%	5.78%
*At Call Accounts*
NAB	AA-	1,855,338	342,054	1.00%	0.25%	N/A	N/A	N/A
NAB	AA-	13,440,786	2,858	1.69%	0.00%	N/A	N/A	N/A
Rabobank	A+	31,632	0	0.00%	0.00%	N/A	N/A	N/A
CBA	AA-	4,031	3,525,091	1.00%	2.55%	N/A	N/A	N/A
CBA	AA-	0	13,858,520	1.60%	10.01%	N/A	N/A	N/A
*Total At Call Accounts*		15,331,786	17,728,523	1.47%	12.80%
*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%	1.44%	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	2.47%	2.17%	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%	2.17%	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%	1.44%	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
Institution	Rating	Closing Balance Invested 30/06/2019 $	Closing Balance Invested 31/07/2019 $	July EOM Current Yield %	July EOM % of Portfolio	Investment Date	Maturity Date	Term (mths)
P&N Bank	BBB	1,000,000	1,000,000	3.30%	0.72%	20/11/2018	21/11/2022	48
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
Newcastle Permanent	BBB	2,000,000	2,000,000	2.70%	1.44%	23/04/2019	26/04/2022	36
BoQ	BBB+	1,000,000	1,000,000	2.40%	0.72%	22/05/2019	23/05/2022	36
BoQ	BBB+	0	1,000,000	2.15%	0.72%	8/07/2019	10/07/2023	48
Judo Bank	NR	0	1,000,000	2.30%	0.72%	16/07/2019	16/07/2021	24
*Total Medium Term Deposits*		59,000,000	61,000,000	3.01%	44.05%
*Floating Rate Notes - Senior Debt*
AMP	A-	1,008,273	1,009,907	BBSW + 135	0.73%	24/05/2016	24/05/2021	60
BOQ	BBB+	1,517,141	0	0.00%	0.00%	26/10/2016	26/10/2020	48
Teachers Mutual	BBB	1,511,091	1,503,386	BBSW + 140	1.09%	28/10/2016	28/10/2019	36
CUA	BBB	754,516	756,657	BBSW + 130	0.55%	20/03/2017	20/03/2020	36
Heritage Bank	BBB+	605,668	607,631	BBSW + 130	0.44%	4/05/2017	4/05/2020	36
Teachers Mutual	BBB	1,006,691	1,010,152	BBSW + 142	0.73%	29/06/2017	29/06/2020	36
Suncorp-Metway	A+	1,010,734	1,016,161	BBSW + 97	0.73%	16/08/2017	16/08/2022	60
Westpac	AA-	2,017,691	2,020,496	BBSW + 81	1.46%	30/10/2017	27/10/2022	60
ME Bank	BBB	1,514,259	1,519,981	BBSW + 125	1.10%	9/11/2017	9/11/2020	36
NAB	AA-	2,014,246	2,028,848	BBSW + 80	1.47%	10/11/2017	10/02/2023	63
ANZ	AA-	1,512,159	1,514,254	BBSW + 77	1.09%	18/01/2018	18/01/2023	60
Bendigo-Adelaide	BBB+	504,355	504,860	BBSW + 105	0.36%	25/01/2018	25/01/2023	60
Newcastle Permanent	BBB	1,520,473	1,528,330	BBSW + 140	1.10%	6/02/2018	6/02/2023	60
Westpac	AA-	2,011,812	2,026,863	BBSW + 83	1.46%	6/03/2018	6/03/2023	60
UBS	A+	2,006,294	2,015,607	BBSW + 90	1.46%	8/03/2018	8/03/2023	60
Heritage Bank	BBB+	1,406,503	1,414,175	BBSW + 123	1.02%	29/03/2018	29/03/2021	36
ME Bank	BBB	1,617,871	1,613,339	BBSW + 127	1.17%	17/04/2018	16/04/2021	36
ANZ	AA-	2,021,733	2,036,731	BBSW + 93	1.47%	9/05/2018	9/05/2023	60
NAB	AA-	2,019,734	2,035,607	BBSW + 90	1.47%	16/05/2018	16/05/2023	60
CBA	AA-	2,020,188	2,038,514	BBSW + 93	1.47%	16/08/2018	16/08/2023	60
Bank Australia	BBB	755,865	758,259	BBSW + 130	0.55%	30/08/2018	30/08/2021	36
CUA	BBB	605,482	608,494	BBSW + 125	0.44%	6/09/2018	6/09/2021	36
AMP	A-	1,501,720	1,504,314	BBSW + 108	1.09%	10/09/2018	10/09/2021	36
NAB	AA-	2,012,769	2,032,303	BBSW + 93	1.47%	26/09/2018	26/09/2023	60
Bendigo-Adelaide	BBB+	1,010,074	1,009,506	BBSW + 101	0.73%	19/10/2018	19/01/2022	39
CBA	AA-	3,062,248	3,072,643	BBSW + 113	2.22%	11/01/2019	11/01/2024	60
Westpac	AA-	3,060,156	3,073,603	BBSW + 114	2.22%	24/01/2019	24/04/2024	63
ANZ	AA-	2,543,853	2,569,510	BBSW + 110	1.86%	8/02/2019	8/02/2024	60
NAB	AA-	2,025,993	2,047,720	BBSW + 104	1.48%	26/02/2019	26/02/2024	60
Bank of China Australia	A	1,510,915	1,507,377	BBSW + 100	1.09%	17/04/2019	17/10/2022	42
Westpac	AA-	2,512,980	2,542,054	BBSW + 88	1.84%	16/05/2019	16/08/2024	63
Suncorp-Metway	A+	0	1,250,333	BBSW + 78	0.90%	30/07/2019	30/07/2024	60
*Total Floating Rate Notes - Senior Debt*		50,203,488	50,177,614		36.24%
Institution	Rating	Closing Balance Invested 30/06/2019 $	Closing Balance Invested 31/07/2019 $	July EOM Current Yield %	July EOM % of Portfolio	Investment Date	Maturity Date	Term (mths)
*Managed Funds*
NSW Tcorp	NR	1,542,751	1,568,498	1.67%	1.13%	17/03/2014	1/07/2024	123
*Total Managed Funds*		1,542,751	1,568,498	1.67%	1.13%
TOTAL CASH ASSETS, CASH EQUIVALENTS & INVESTMENTS		136,078,024	138,474,636		100.00%
LESS: RIVERINA REGIONAL LIBRARY (RRL) CASH AT BANK		2,821,267	4,028,255
TOTAL WWCC CASH ASSETS, CASH EQUIVALENTS & INVESTMENTS		133,256,758	134,446,380

Council’s investment portfolio is dominated by Term Deposits, equating to approximately 50% of the portfolio across a broad range of counterparties. Cash equates to 13%, with Floating Rate Notes (FRNs) around 36% and growth funds around 1% of the portfolio.

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

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

Investment Portfolio Balance

Council’s investment portfolio balance has increased from the previous month’s balance, up from $133.3M to $134.4M.

Monthly Investment Movements

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

Institution and Type	Amount	Investment Term	Interest Rate	Comments
Australian Military Bank Term Deposit	$1M	12 months	3.01%	This term deposit was redeemed on maturity and funds were reinvested in a new 2-year term deposit with Judo Bank (see below).
Australian Military Bank Term Deposit	$1M	10 months	2.86%	This term deposit was redeemed on maturity and funds were reinvested in a new 4-year term deposit with Bank of Queensland (see below).
Bank of Queensland Floating Rate Note	$1.5M	4 years	BBSW + 117	This floating rate note was sold prior to maturity and funds were reinvested in the new 5-year Suncorp Bank FRN (see below). Council recognised a capital gain of $11,535.

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

Institution and Type	Amount	Investment Term	Interest Rate	Comments
Bank of Queensland Term Deposit	$1M	4 years	2.15%	The Bank of Queensland rate of 2.15% 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.
Judo Bank Term Deposit	$1M	2 years	2.30%	The Judo Bank rate of 2.30% 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.
Suncorp Bank Floating Rate Note	$1.25M	5 years	BBSW + 78	Council’s independent Financial Advisor advised this Floating Rate Note represented fair value.

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

Monthly Investment Performance

Interest/growth/capital gains for the month totaled $555,243, which compares favourably with the budget for the period of $298,250, outperforming budget for the month by $256,993.

Council’s T-Corp Long Term Growth Fund boosted the overall performance of the portfolio for the month of July, as both domestic and international equities continued to rally. The fund returned 1.67% for the month of July and has returned 10.58% 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.

The longer-dated deposits in the portfolio, particularly those locked in above 3.00%, continue to anchor Council’s portfolio performance. It should be noted that Councils investment portfolio includes 23 investments yielding above 3.00%. As these investments mature, it is inevitable that they will be reinvested at lower prevailing rates. To reduce this reinvestment risk, 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* (1.90%), Council’s investment portfolio returned 2.88% (annualised) for July. Cash and At-Call accounts returned 1.47% (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.

Over the past year, Councils investment portfolio has returned 3.03%, outperforming the AusBond Bank Bill index by 1.13%. 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.

* 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 29 April 2019.

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 ⇩.	Section 356 Financial Assistance request - Cork & Fork Festival
2 ⇩.	Section 356 Financial Assistance request - Legion of Mary
3 ⇩.	Section 356 Financial Assistance request - PCYC Wagga Wagga OOSH
4 ⇩.	Section 356 Financial Assistance request - Riverina Medical & Surgical Symposium

Issue

Response

Ensure adequate room behind stage area for event requirements

Additional space will be provided during detailed design

Ensure adequate power supply, lighting and cable to stages

Demand requirements will be assessed during detailed design.

Look at a permanent building instead of containerised cafes

Due to the impact of flooding this is not considered feasible

Closure of caravan park

The design for Stage 2 is based on the premise that the caravan park is not included. Accommodation provision would limit the site to being used as an events space

Lighting to allow night time activity

Lighting is planned throughout the precinct

Inclusion of rock pool and pontoon

These items are not considered within scope of the available budget.

Ensure inclusion of Wiradjuri culture

Staff have been working with Mawang Gaway to ensure inclusion of Wiradjuri culture.

Public Art / Graffiti Wall

It is proposed that public art will be incorporated into the site. There is no provision for a graffiti wall within the concept.

Potential inclusion of bar and the patrons swimming

It is unknown what food and beverage outlets will be included however if a bar area is incorporated staff will work with the operator to identify strategies to minimise this risk.

Inclusion and size of splash park

A splash park is proposed to be included. Its exact specification will be determined during the procurement stage of the project.

Lake Albert is a priority

Both the Riverside Precinct and Lake Albert are identified as important strategic assets in the Recreation, Open Space and Community Strategy and Implementation Plans 2040. Investigations into ways to address the water levels within Lake Albert are ongoing. The funding currently available is specifically for the Riverside project.

Inclusion of a large waterslide

The inclusion of a large water slide is not considered within scope of the available budget.

Recognition of historical uses

Staff will investigate the inclusion of interpretive signage to reflect historical usage of the site.

Impact on birds and other wildlife

This will be considered in the development of construction and operational plans

Impact of noise on adjacent residents

This will be considered during the development of operational plans

Who

Feedback received against sections of document

Response

Outcome: Recommended changes for endorsement

Uncle Stan Grant (Author of A First Wiradjuri Dictionary) supported by multiple students and Elders and staff in attendance at the Wiradjuri Language school at CSU

Page 15 Need to remove reference to crows and replace with celebrations and dance only

Amend as requested

Amend last sentence of the first paragraph on page 15 to say “Thus, Wagga Wagga could mean a place of many celebrations or a place of many dances.”

Aunty Dot Whyman, Uncle James Ingram, Aunty Jackie Ingram, Aunty Cheryl Penrith, Ruth Davis

Aunty Yvonne Gilchrist needs to be acknowledged and represented at the front of the document

Amend as requested

Relocate first page with reference to artist Aunty Kath Withers to end of the document, replacing picture of Thelma Plum.

Amend the first page to include a formal picture of Councillor Gilchrist (1999 - 2004) at the front of the document and include the following words reflecting the leadership role that Councillor Gilchrist played in connecting Council to Wiradjuri and First Nations people in the Wagga Wagga community:

“We would like to acknowledge Aunty Yvonne Gilchrist (now deceased), a highly regarded and well-known Wiradjuri Elder, who served as a Councillor for Wagga Wagga City Council, from 1999 to 2004.

Aunty Yvonne Gilchrist, affectionately known to many as ‘Aunty Vonnie’ had a passion for lifelong learning, education and seized every opportunity that became available. She recalled that working at Mount Austin High School as an Aboriginal Education Assistant were amongst her happiest times, as she loved being with the children and helping when need occurred. Her contribution to the school has been recognised with the naming of the Yvonne Gilchrist resource room at Mt Austin High.

The Sorry Bus tour, forming the Aboriginal Consultative Committee, connecting council to the Reconciliation process and moving to secure a local Aboriginal Youth and Community Development Position in Council were all huge achievements within a larger, national framework.

Aunty Vonnie is seen by many as a pioneer in the journey of reconciliation for Wagga Wagga.

Aboriginal and Torres Strait Islander peoples should be aware that this document contains images, and names of people who have passed away.

Wiradjuri Language, Culture and Heritage staff and students at CSU

Need to replace all reference to Aboriginal and / or Torres Strait Islander with First Nations People/s (excluding where referenced in quotes)

Amend as requested

Amend all reference to Aboriginal and or Aboriginal and Torres Strait Islanders with First Nations People/s with the exception of the use of the word in areas required by Reconciliation Australia and when used in quotations.

Proposed Funding Source	Amount
Regional Growth Environment and Tourism Fund	$5,000,000
Wagga Wagga Local Infrastructure Contribution Plan 2019-2034	$1,746,530
Total	$6,746,530

Item	Amount ($)
Plant (Truck + dog, Loader)	9,628
Labour (Truck Driver, Loader Operator, Labourer)	10,923
Add 15% Contingency	3,083
Total	23,634

1 ⇩.	LEP19.0006 Council assessment report
2 ⇩.	LEP19.0006 Draft Planning Proposal lodged by applicant

1 ⇩.	Application - LEP19/0007 - Lot 176 DP 257253, Tumbarumba Road, Ladysmith
2 ⇩.	Assessment Report - LEP19/0007 - Lot 176 DP 257253, Tumbarumba Road, Ladysmith

1.	Stage 2 Concept - Provided under separate cover
2.	Riverside Online Submissions - Provided under separate cover
3.	Riverside Written Feedback - Provided under separate cover
4.	Committee 4 Wagga Letter - Provided under separate cover
5.	School Feedback - Provided under separate cover
6.	Enlighten for Equity Project Brief - Provided under separate cover

1 ⇩.	Shaw Street Childrens Centre - Proposed Extensions
2 ⇩.	Location Map - Shaw Street & Kent Crescent, Wagga Wagga