Agenda of Ordinary Meeting of Council

Report submitted to the Ordinary Meeting of Council on Monday 28 October 2019. RP-2

RP-2 ANNUAL FINANCIAL STATEMENTS 2018/19

Author: Carolyn Rodney

Director: Natalie Te Pohe

Analysis:

The 2018/19 Financial Statements have been completed by Council staff and have recently been audited by the NSW Audit Office.

Recommendation

That Council:

a note the comments from the Audit, Risk & Improvement Committee regarding the 2018/19 Financial Statements

b approve the signing of the 2018/19 Financial Statements pursuant to Section 413 (2)(c) of the Local Government Act 1993

c approve the closing balances of the Restricted Assets (Reserves) as at 30 June 2019 as detailed in Note 6 (c) - Cash & Investments

d receive a presentation from the NSW Audit Office on the audited financial reports and auditors report at the 25 November 2019 Council Meeting, pursuant to Section 418(1) and provide public notice accordingly

Report

The 2018/19 Annual Financial Statements have been prepared and Council’s external auditors, NSW Audit Office have completed their audit. It is a requirement of the Local Government Act 1993 that Council prepare a statement on the General Purpose and Special Purpose Financial Reports prior to sign off by the auditor. These statements must be signed by the Mayor, one Councillor, the General Manager and the Responsible Accounting Officer.

This statement is required to be signed and included in the Financial Statements prior to the auditor providing the final audit reports. The Financial Statements together with the auditors’ reports must be forwarded to the Department of Planning, Industry and Environment (formerly the Office of Local Government) by 31 October 2019.

The 2018/19 financial statements were presented to the Audit, Risk & Improvement Committee (ARIC) at its meeting on 10 October 2019. The report from the Chairperson is included in the Committee meetings minutes in a separate report to this meeting, with an extract provided below for Councillors’ information:

Extract from the Report from the ARIC Chairperson:

RP4 and 5: Financial Statements

Preparation of financial statements is the responsibility of management and the Council, not the external auditors or the Audit, Risk and Improvement Committee.

The Committee’s responsibility is to make an advisory judgement on the financial statements and the systems and procedures used to create them.

The Director Finance advised the Audit, Risk and Improvement Committee that the external audit of the 2018/2019 financial statements has been completed successfully and that there were no contentious financial reporting matters or material changes to be reported.

The Committee reviewed the key aspects of the financial statements and sought clarification of a number of issues. Matters discussed included:

· Changes to accounting standards

· Explanation of key movements in the net operating result for the year

· RFS assets and Crown Lands

· Financial performance indicators

· Asset valuation and impairment

· Contingent assets and liabilities

· Working capital, and

· Events since balance date.

As a result of these discussions and internal audit coverage during the year and past periods, the Audit, Risk and Improvement Committee reached the conclusion that, in accordance with its charter:

· it was satisfied that the annual financial statements for the year ended 30 June 2019 comply with applicable Australian accounting standards and are supported by appropriate management sign-off on the statements and Council’s systems of internal controls;

· the proposed external audit opinion was supported by appropriate coverage and management had taken appropriate action on all material audit recommendations to date; and

· ·there were no other contentious financial reporting matters that the Committee considered should be reported to Council.

Council’s external auditors informed the Committee that (subject to final clearance of minor changes to the statements) the external audit report on the financial statements would be unqualified and that Council’s financial position is ‘sound’.

They also advised that they found no accounting policies or application of policies, other than was already disclosed in the statements, that needed to be brought to the attention of the Audit, Risk and Improvement Committee.

The external auditors noted that the working papers and the level of co-operation provided during the audit were both professional and of high standard.

Marg Nicholls

Chair

Wagga Wagga City Council Audit, Risk and Improvement Committee

2018/19 Financial Overview

The 2018/19 draft financial statements show total income from continuing operations of $154.9M and total expenses from continuing operations of $127.4M, resulting in a preliminary net operating surplus of $27.5M (including capital grants and contributions). The 2017/18 financial year resulted in a net operating surplus of $22.1M. The main difference in the increased net result was attributable to an increase in capital grants and contributions and rates and annual charges recognised during 2018/19.

Extract from the 2018/19 Draft Financial Statements – Income Statement:

For the 2018/19 financial year, Council met the benchmark for four (4) of the six (6) performance indicators outlined within the financial statements. This is a decrease from the five (5) met in 2017/18. Below is an extract of the performance indicators from the draft 2018/19 financial statements.

Extract from the 2018/19 Draft Financial Statements – Statement of performance measures:

As a result of Council undertaking loan refinancing for a number of existing loans during 2018/19, the Debt service cover ratio took a one-off hit – reducing from 4.79x in 2017/18 to 1.54x in 2018/19. This refinancing will result in a better overall result for Council of approximately $0.239M over the next 6-8 years. If the refinancing did not occur, the Debt service cover ratio would have been 3.75x and achieving the recommended benchmark.

As of 30 June 2019, Council held $33.1M in internal reserves, a decrease of $3.7M on the previous year. The major internally restricted reserves Council holds are:

Reserve Name	30 June 2019 Balance	30 June 2018 Balance	Increase/ (Decrease) from prior year*
Plant and Vehicle Replacement	$3.550M	$3.935M	($0.385M)
Employees Leave Entitlements	$3.585M	$3.323M	$0.262M
Fit for the Future	$1.785M	$5.340M	($3.555M)
Grant Commission	$5.256M	$5.199M	$0.057M

*Notes on Increases/(Decreases):

· Plant and Vehicle Replacement Reserve – Council experienced delays in fulfilling their plant replacement program during the 2016/17 financial year and were able to catch up some of the backlog in replacement during both the 2017/18 and 2018/19 financial years.

· Fit for the Future Reserve – an additional $1.36M has been transferred to this Reserve during 2018/19, with a one-off transfer of funding from the Reserve of ($4.55M) that is proposed to be paid back to this Reserve from the Sewer fund pending the Minister for Local Government’s approval of this internal loan. These transfers have resulted in a reduced closing balance of $1.785M at 30 June 2019.

· Grant Commission Reserve – $5.256M received for a 50% prepayment of the Financial Assistance Grant relating to the 2019/20 financial year. This prepayment commenced in the 2016/17 financial year.

· Additional Reserve transfers – following a number of years of uncommitted operating surplus results to budget, Council staff have allocated an additional $2.2M in Reserve transfers including $1M for the Fit for the Future Reserve, $0.500M for the Economic Development Reserve, $0.300M for the Bridge Replacement Reserve, $0.200M for the Information Services Reserve and $0.100M each for the Sporting Event Attraction and Sporting Event Operations Reserves. These amounts held in Reserve will be utilised this financial year or in future financial years, with Council adoption required to transfer funds out of these Reserves when they are proposed to be utilised.

A copy of the Draft Financial Statements are attached to this report.

Update to Report on Infrastructure Assets (previously named Special Schedule 7) – unaudited report. Post ARIC meeting adjustment

After completion of the draft financial statements and after the ARIC meeting, staff identified that the original Report on Infrastructure Assets (previously Special Schedule 7) workpapers for Roads assets (sealed and unsealed) were calculated at an asset level, and not at a component level.

Wagga’s sealed roads are componentised into 4 levels – surface, pavement base, pavement sub-base and formation; with unsealed roads componentised into two levels – pavement base and formation.

The amended calculation results in a reduction to the roads backlog figure from $136.8M to $100.2M for 2018/19 and was $121.3M for 2017/18. This reduction is reflective of the work carried out during the 2018/19 financial year, along with updates to the road network condition data.

	2017/18 Estimated cost to bring assets to satisfactory standard $’000	PREVIOUS DRAFT STATEMENTS Estimated cost to bring assets to satisfactory standard $’000	REVISED Estimated cost to bring assets to satisfactory standard $’000
Sealed Roads	$89,455	$100,606	$74,536
Unsealed Roads	$31,859	$36,209	$25,660
Subtotal Roads	$121,314	$136,815	$100,196

The Report on Infrastructure Assets statement is an unaudited statement. Council staff have advised the NSW Audit Office of this adjustment, and they have no issues with this proposed late change, due to the report falling outside of their audit.

An email has been sent to all ARIC committee members advising them of the adjustment to the draft financial statements.

Financial Implications

Whilst this report and associated attachments show Council’s financial performance and position for the 2018/19 financial year, the adoption of this report by the Council has no financial implications.

Policy and Legislation

Local Government Act 1993

Sections: 413 - Preparation of Financial Reports

418 - Public notice to be given of presentation of financial reports

Link to Strategic Plan

Community Leadership and Collaboration

Objective: We have strong leadership

Outcome: We are accountable and transparent

Risk Management Issues for Council

The NSW Audit Office have provided Council with a final Management Letter which has identified four (4) issues with three (3) rated as Low and one (1) rated as Moderate. Council officers will undertake the actions that have been identified in each of the Management Responses.

Internal / External Consultation

The 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….”

Council’s external auditors, NSW Audit Office have liaised with Council’s Finance division, along with presenting the results to the Audit, Risk and Improvement Committee on 10 October, and to Councillors at a workshop held on 21 October with the following Councillors in attendance:

· Mayor Councillor Greg Conkey OAM

· Deputy Mayor Councillor Dallas Tout

· Councillor Yvonne Braid

· Councillor Paul Funnell

· Councillor Dan Hayes

· Councillor Vanessa Keenan

· Councillor Rod Kendall

· Councillor Kerry Pascoe

· Councillor Tim Koschel

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 ⇨.	2018/19 Draft Financial Statements - Provided under separate cover
2 ⇩.	2018/19 General Purpose Financial Statements - Statement by Councillors and Management
3 ⇩.	2018/19 Special Purpose Financial Statements - Statement by Councillors and Management

Report submitted to the Ordinary Meeting of Council on Monday 28 October 2019

RP-3

RP-3 Financial Performance Report as at 30 September 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 30 September 2019.

This report also presents the financial assistance requests Council has received over the past month.

Recommendation

That Council:

a approve the proposed 2019/20 budget variations for the month ended 30 September 2019 and note the balanced budget position as presented in this report

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

i Wagga Wagga Local Aboriginal Education Consultative Group (WLAECG) $850.00 (Request 1)

ii Gunni Thakun Cultural Association $196.00 (Request 2)

iii Climate Rescue of Wagga Inc. (CROW) $160.00 (Request 3)

iv NSW Sports Federation Inc (Sport NSW) $348.00 (Request 4)

v Wagga Wagga Pink Stumps Committee $1,077.00 (Request 5)

vi Wagga Autism Support Group $90.00 (Request 6)

vii Riverina Medical & Dental & Dental Aboriginal Corporation $95.00 (Request 7)

viii Multicultural Council of Wagga Wagga Inc $1,800.00 (Request 8)

ix Wagga Inter Church Council $2,200.00 plus provide further financial assistance by covering the cost of additional general waste and recycling bins required for the “Christmas Carols in the Park 2019” event (Request 9)

x Vigil at Wagga Victory Memorial Gardens $95.00 (Request 10)

xi Tarcutta Transport and Farming Museum $873.12 (Request 11)

c rescind the 2019/20 contribution to Kurrajong Waratah of $2,200 for the 2019 “Christmas Spectacular” as this event will not be staged in 2019 by Kurrajong Waratah and was originally included in the adopted 2019/20 Combined Delivery Program and Operational Plan (Minute No 19/212 from the 24 June 2019 Council Officers Report RP-1)

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 30 September 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 30 September 2019. Proposed budget variations are detailed in this report for Council’s consideration and adoption.

Council has experienced a negative monthly investment performance for the month of September, when compared to budget. This is mainly due to a negative movement for Council’s Floating Rate Note portfolio.

Key Performance Indicators

OPERATING INCOME

Total operating income is 24% of approved budget, which is on budget for the end of September (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 69%.

OPERATING EXPENSES

Total operating expenditure is 27% of approved budget and is tracking slightly higher than the budget for the full financial year.

CAPITAL INCOME

Total capital income is 4% 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 17% of approved budget.

CURRENT LONG TERM FINANCIAL PLAN – PROJECTED SURPLUS/ (DEFICIT) BUDGET POSITION

WAGGA WAGGA CITY COUNCIL STATEMENT OF FINANCIAL PERFORMANCE 1 JULY 2019 TO 30 SEPTEMBER 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)	(17,166,229)	0	(17,166,229)	25%
User Charges & Fees	(28,440,057)	(39,500)	(28,479,557)	(5,967,084)	0	(5,967,084)	21%
Interest & Investment Revenue	(3,774,001)	0	(3,774,001)	(955,070)	0	(955,070)	25%
Other Revenues	(3,053,633)	(11,100)	(3,064,733)	(1,069,157)	0	(1,069,157)	35%
Operating Grants & Contributions	(14,280,296)	4,941,432	(9,338,864)	(2,370,641)	0	(2,370,641)	25%
Capital Grants & Contributions	(56,263,733)	1,392,770	(54,870,963)	(2,227,826)	0	(2,227,826)	4%
Total Revenue	(175,548,613)	6,283,603	(169,265,011)	(29,756,008)	0	(29,756,008)	18%

Expenses
Employee Benefits & On-Costs	46,012,119	61,444	46,073,563	12,087,797	121,430	12,209,227	26%
Borrowing Costs	3,587,823	0	3,587,823	811,679	0	811,679	23%
Materials & Contracts	32,357,210	5,452,573	37,809,784	7,604,095	3,639,007	11,243,101	30%
Depreciation & Amortisation	34,843,073	0	34,843,073	8,710,768	0	8,710,768	25%
Other Expenses	13,015,295	158,738	13,174,033	3,006,025	51,514	3,057,539	23%
Total Expenses	129,815,520	5,672,756	135,488,276	32,220,363	3,811,950	36,032,314	27%

Net Operating (Profit)/Loss	(45,733,093)	11,956,358	(33,776,735)	2,464,355	3,811,950	6,276,306

Net Operating (Profit)/Loss before Capital Grants & Contributions	10,530,640	10,563,588	21,094,228	4,692,182	3,811,950	8,504,132

Capital / Reserve Movements
Capital Exp - Renewals	34,034,738	3,526,409	37,561,148	5,501,876	10,357,086	15,858,961	42%
Capital Exp - New Projects	42,696,132	3,954,060	46,650,191	1,420,290	3,767,787	5,188,077	11%
Capital Exp - Project Concepts	38,364,925	824,985	39,189,910	57,102	40,979	98,082	0%
Loan Repayments	3,380,744	0	3,380,744	845,186	0	845,186	25%
New Loan Borrowings	(21,222,532)	(351,112)	(21,573,644)	0	0	0	0%
Sale of Assets	(1,502,910)	(1,745,414)	(3,248,324)	(258,339)	(72,250)	(330,589)	10%
Net Movements Reserves	(15,174,931)	(18,165,287)	(33,340,217)	0	1,075	1,075	0%
Total Cap/Res Movements	80,576,166	(11,956,358)	68,619,808	7,566,115	14,094,677	21,660,793

	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
Net Result after Depreciation	34,843,073	0	34,843,073	10,030,471	17,906,627	27,937,098

Add back Depreciation Expense	34,843,073	0	34,843,073	8,710,768	0	8,710,768	25%

Cash Budget (Surplus)/Deficit	0	0	0	1,319,703	17,906,627	19,226,330

Revised Budget Result - Surplus/(Deficit)

$’000s

Original 2019/20 Budget Result as adopted by Council

Total Budget Variations approved to date

Budget Variations for September 2019

Proposed Revised Budget result for 30 September 2019

The proposed Budget Variations to 30 September 2019 are listed below:

*Budget Variation*			*Amount*			*Funding Source*	*Net Impact* *Fav/ (Unfav)*
*1 – Community Leadership and Collaboration*
Procure to Pay Automated Workflow Project		$25K			Corporate Applications ($25K)		Nil
Funds are required for the successful implementation of the Procure to Pay Automated Workflow Project. It was identified during the project scoping exercise that a dependant software module requires updating for continued functionality. This $25K additional budget will bring the total project budget up to $220K.
*5 – The Environment*
Edward Street Footpath		$75K			Fit for the Future Reserve ($43K) RMS Contribution ($32K)		Nil
Funds are required for the replacement of 255 metres of footpath along Edward Street, which was removed to allow for the replacement of the water main along this section. RMS have agreed to only pay for the replacement of this footpath to the existing width standard, being 1.2 metres wide. It is suggested to replace the footpath with a 2.5 metre shared path to ensure that the footpath complies with the requirements of the Bolton Park Master Plan. The total project is estimated at $75K with the RMS contributing ($32K) and Council’s proposed funding of ($43K) to be allocated from the Fit for the Future Reserve.
Chipping of Stockpiled Green Waste	$166K			Solid Waste Reserve ($166K)			Nil
A budget is required for the chipping of green waste at the Gregadoo Waste Management Centre (GWMC). This chipping is performed when a sufficient stockpile is available to warrant the engagement of a contractor. Green waste comprises of green waste delivered by the general public, arborists and contractors over the weighbridge plus pallets and other separated timber. The budget is required on an ongoing basis, indexed at 3% annually in the Long Term Financial Plan. It is proposed to fund this variation from the Solid Waste Reserve.
Excavator Hire at GWMC	$100K			Solid Waste Reserve ($100K)			Nil
Funds are required for the hire of an excavator for usage at GWMC. The excavator is used to load cover material from the stockpile, shredded green waste, crushed concrete into trucks and to assemble crushed material into an efficient stockpile. This will allow a trial period to test the viability of having an excavator at GWMC on a permanent basis. It is proposed to fund this variation from the Solid Waste Reserve.
Replacement Pump Purchase - GWMC	$35K			Solid Waste Reserve ($35K)
A budget variation is required for the purchase of replacement pumps at GWMC as the previous pumps have proven unreliable. These pumps are designed for leachate, are corrosion resistant and are solar powered. It is proposed to fund the variation from the Solid Waste Reserve.
Asphalt Repair at GWMC	$48K			Solid Waste Reserve ($48K)			Nil
Funds are required for asphalt/hot mix road patching work at GWMC. The works are required to address Work Health and Safety trip hazards at the transfer station due to the deteriorated nature of the bitumen seal. It is proposed to fund the variation from the Solid Waste Reserve.
							Nil

Current Restrictions

RESERVES SUMMARY
30 SEPTEMBER 2019
	CLOSING BALANCE 2018/19	ADOPTED RESERVE TRANSFERS 2019/20	BUDGET VARIATIONS APPROVED UP TO COUNCIL MEETING 23.09.19	PROPOSED CHANGES for Council Resolution	REVISED BALANCE

Externally Restricted
Developer Contributions - Sect 7.11	(23,836,289)	3,427,074	720,687		(19,688,527)
Developer Contributions - Sect 7.12	97,487	(32,500)	154,012		218,999
Developer Contributions – S/Water DSP S64	(6,551,347)	2,579,329	175,899		(3,796,118)
Sewer Fund	(31,115,819)	155,636	1,609,011		(29,351,171)
Solid Waste	(21,521,767)	2,164,970	463,609	348,474	(18,544,713)
Specific Purpose Grants	(4,044,299)	0	4,044,299		0
SRV Levee	(3,853,286)	(3,211)	78,000		(3,778,497)
Stormwater Levy	(3,699,109)	2,758,808	573,550		(366,752)
Total Externally Restricted	(94,524,428)	11,050,106	7,819,068	348,474	(75,306,780)

Internally Restricted
Airport	(442,321)	(522,440)	6,594		(958,166)
Art Gallery	(33,971)	(6,865)	0		(40,836)
Ashmont Community Facility	(7,500)	(1,500)	0		(9,000)
Bridge Replacement	(601,972)		0		(601,972)
CBD Carparking Facilities	(884,968)	110,302	17,098		(757,568)
CCTV	(84,476)	18,000	0		(66,476)
Cemetery Perpetual	(107,717)	(133,730)	16,519		(224,928)
Cemetery	(448,951)	110,164	0		(338,787)
Civic Theatre Operating	(125,471)	8,327	24,240		(92,904)
Civic Theatre Technical Infrastructure	(82,706)	10,000	0		(72,706)
Civil Projects	(155,883)	24,000	0		(131,883)
Community Amenities	(76,763)	(214,928)	0		(291,691)
Community Works	(86,412)	(32,217)	3,500		(115,129)
Council Election	(343,408)	(83,163)	0		(426,571)
Economic Development	(500,000)	(80,000)	0		(580,000)
Emergency Events	(191,160)	(50,000)	90,420		(150,740)
Employee Leave Entitlements	(3,585,224)		0		(3,585,224)
Environmental Conservation	(115,206)		(42,725)		(157,931)
Estella Community Centre	(230,992)		0		(230,992)
Family Day Care	(245,192)	93,442	0		(151,750)
Fit for the Future	(1,785,102)	266,703	698,874	43,000	(776,525)
Generic Projects Saving	(816,377)	20,000	31,130		(765,248)
Glenfield Community Centre	(21,704)	(2,000)	0		(23,704)
Grants Commission	(5,256,259)		5,256,259		0
Grassroots Cricket	(70,992)		0		(70,992)
Gravel Pit Restoration	(797,002)		3,546		(793,456)

RESERVES SUMMARY
30 SEPTEMBER 2019
	CLOSING BALANCE 2018/19	ADOPTED RESERVE TRANSFERS 2019/20	BUDGET VARIATIONS APPROVED UP TO COUNCIL MEETING 23.09.19	PROPOSED CHANGES for Council Resolution	REVISED BALANCE
Gurwood Street Property	(50,454)		0		(50,454)
Hampden Bridge	(107,198)		107,198		0
Information Services	(775,938)	(222,792)	350,000		(648,730)
Infrastructure Replacement	(335,497)	(30,192)	0		(365,689)
Insurance Variations	(100,246)		0		(100,246)
Internal Loans	(660,754)	260,962	398,554		(1,238)
Lake Albert Improvements	(28,338)	(21,515)	4,021		(45,832)
LEP Preparation	(2,667)		0		(2,667)
Livestock Marketing Centre	(3,311,635)	972,792	402,954		(1,935,889)
Museum Acquisitions	(39,378)		0		(39,378)
Oasis Building Renewal	(320,759)	65,000	28,529		(227,230)
Oasis Plant	(1,239,132)	857,486	6,937		(374,709)
Office Equipment/Building Projects	(159,030)		0		(159,030)
Parks & Recreation Projects	(206,102)	30,148	75,954		(100,000)
Planning Legals	0	(40,000)	0		(40,000)
Plant Replacement	(3,550,033)	660,253	1,055,919		(1,833,861)
Playground Equipment Replacement	(95,290)	(165,727)	0		(261,017)
Project Carryovers	(2,453,184)	518,327	1,934,858		0
Public Art	(198,922)	30,300	80,594		(88,028)
Robertson Oval Redevelopment	(92,151)		0		(92,151)
Senior Citizens Centre	(17,627)	(2,000)	0		(19,627)
Sister Cities	(46,328)	(10,000)	0		(56,328)
Sporting Event Attraction	(169,421)		0		(169,421)
Sporting Event Operational	(100,000)		0		(100,000)
Stormwater Drainage	(158,242)	(100,000)	0		(258,242)
Strategic Real Property	0		(395,000)		(395,000)
Street Lighting Replacement	(56,549)		0		(56,549)
Subdivision Tree Planting	(702,868)	(20,000)	0		(722,868)
Sustainable Energy	(527,244)	389,333	37,732		(100,179)
Unexpended External Loans	(431,337)		431,337		0
Workers Compensation	(93,251)		0		(93,251)
Total Internally Restricted	(33,127,305)	2,706,471	10,625,040	43,000	(19,752,794)

Total Restricted	(127,651,734)	13,756,577	18,444,108	391,474	(95,059,574)

Total Unrestricted	(5,725,794)	0	0	0	(5,725,794)

Total Cash, Cash Equivalents and Investments	(133,377,528)	13,756,577	18,444,108	391,474	(100,785,368)

CONSULTANCY & LEGAL EXPENSES BUDGET REVIEW STATEMENT
30 September 2019
		Approved Changes
	BUDGET 2019/20	SEPTEMBER QTR BUDGET VARIATIONS APPROVED TO DATE	REVISED BUDGET	RECOMMENDED CHANGES (for Council Resolution)	PROJECTED YEAR END RESULT	ACTUAL YTD

Consultancy Expenses	192,903	7,017	199,920	0	199,920	66,301

Legal Expenses	248,757	4,510	253,267	0	253,267	44,236

CONTRACTS REVIEW STATEMENT
30 September 2019
Contract Number	Contractor	Contract Detail & Purpose	Contract Value	Start Date	Duration of Contract	Budgeted (Yes/No)
PD39825	Wagga Trucks Hino	Supply Truck Hino FE 1426	$145,452	9/09/2019	10 weeks	Y
2020-518	Cambia Consulting Pty Ltd	Asset management consulting	$105,475	17/09/2019	15 weeks	Y
PD39806	Capital Construction Equipment Pty Ltd	Supply skid steer loader	$122,300	3/09/2019	10 weeks	Y
PE08116	GHD Pty Ltd	Developer servicing plan	$72,624	15/08/2019	15 weeks	Y
PE08355	Town & Country Asphalting Pty Ltd	ATP Cycle way Red Hill Road	$149,979	25/09/2019	2 weeks	Y
PS04642	Interflow Pty Ltd	Culvert pipe reline Lockhart Road	$105,791	15/08/2019	12 weeks	Y

Section 356 Financial Assistance Requests

Thirteen Section 356 financial assistance requests have been received for the 28 October 2019 Ordinary Council meeting, which are shown below for Council’s consideration:

1. Wagga Wagga Local Aboriginal Education Consultative Group (WLAECG) – Proud & Deadly Awards Ceremony $850.00

The Vice President of the Wagga Wagga Local Aboriginal Education Consultative Group (WLAECG) has requested in the attached letter Council’s consideration of a waiver for the hire fees for the use of the Civic Theatre on 26 November 2019 from 8.30 am to 3.00 pm for the holding of the annual Proud & Deadly Awards Ceremony.

The writer notes:

“The formal cultural ceremony is an inclusive and well respected Aboriginal community event, attended by local and surrounding Aboriginal and Torres Strait Islander public school students (K-12), parents, caregivers, community families, teachers, principals, Directors and Wiradjuri Elders that celebrates student success in schools e.g. Academic, cultural, sporting, leadership, community contribution etc.

Due to the increasing number of award recipients and local community families supporting the cultural event each year, we desperately seek Wagga City Council support to continue to provide a community space larger enough to facilitate the awards ceremony in a central location, ideally the Wagga Wagga Civic Theatre, as we would need to seat at least 450 people.

In the past, this ceremony has been held at the Wagga Commercial Club and is divided separately into primary school awards and secondary school awards; due to the small space allocation and high numbers of students and families involved. However, this arrangement is far from practical now due to the popularity of the awards ceremony and we wish to celebrate student success together.

We seek financial support in terms of venue costs, equipment, fee waiver and promotion.”

Civic Theatre Officers advise that the associated costs for holding the above event are approximately $2,529.50, made up of venue hire $850.00; staffing costs $1,522.50; and technical support of $157.00.

It is proposed that Council support the above event by contributing the venue hire costs of $850.00 (Community Hire rate charge item 0546). It is noted that the applicable Commercial Hire rate would be $2,300.

The above request aligns with Council’s Strategic Plan “Community Place and Identity” – Objective: We are proud of where we live and our identity”

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

2. Gunni Thakun Cultural Association $196.00

The Gunni Thakun Cultural Association has requested in the attached letter Council’s consideration of a waiver for the hire fees for the use of part of the Marrambidya Wetland and Wiradjuri Reserve for the holding of the Corroboree Wagga Wagga 2019 event.

Gunni Thakun Cultural Association note in their attached letter;

“Gunni Thakun Cultural Association is an organisation of mainly men from across NSW and Eastern Austral who practice (and re-establish) Aboriginal Culture whilst following tradition Lore and Law. This includes language, story, dance, ceremony and implement making where and when appropriate. From the 1990s this has included public corroborees at venues across NSW.

This year’s venue will be the Marrambidya Wetlands with associated camping at Wiradjuri Reserve, alongside the Aboriginal Healing Place established in 2016 and the Wiradjuri Reserve Aboriginal Place declared in 2012. This space was chosen to help all Wagga Wagga Community people connect with these areas and to feel a part of the community in the spirit of enjoyment, openness, trust and learning. “

The above request aligns with Council’s Strategic Plan “Community Place and Identity” – Outcome: We are proud of where we live and our identity”

Council approved a grant of $5,000 as part of the 2019/20 Annual Grants Program Connected Rural and Urban Communities Category (Council Officer Report RP-1 Ordinary meeting of Council held 22 July 2019) to the Gunni Thakun Cultural Association to assist with the staging costs of the free public Corrobboree event.

The detailed budget submitted as part of the grant application from the Association did not factor in Council ground hire costs which they may not have been aware of at the time of their grant application.

Given the relatively small amount requested it is proposed that the request be funded from the Parks operating budget which can absorb this minor cost.

3. Climate Rescue of Wagga Inc (CROW) $160.00

The Climate Rescue of Wagga (Inc) (CROW) group has requested in the attached letter Council’s consideration of a waiver for the hire fees for the use the amphitheatre for their “Global Climate Strike event which was held on the 20 September 2019.

Climate Rescue of Wagga Inc (CROW) note in their attached letter;

“The community of Wagga Wagga and surrounding towns have created a not for profit community event to support the Global Climate Strike Which is a worldwide event set up by students“

The above request aligns with Council’s Strategic Plan “The Environment

– Objective: We create a sustainable environment for future generations”

Council provided $1,047 financial assistance to the above group as part of the 2019/20 Annual Grants (Natural Environment Category) program to purchase Blower door test units to improve energy efficiency of homeowner’s houses by finding leaks and providing information on remedying the leaks.

Given the relatively small amount requested it is proposed that the request be funded from the Parks operating budget which can absorb this minor cost.

4. Sport NSW $348.00

NSW Sports Federation Inc (Sport NSW) has requested in the attached letter Council’s consideration of a waiver for the hire fees for the use of Bolton Park Stadium and adjacent Ovals for the holding of the “Girls Get Active Event” on the 28 of October 2019.

Sport NSW note in their attached letter;

Girls Get Active days are open to all female high school students from years 7 – 11, irrespective of their athletic abilities.

The above request aligns with Council’s Strategic Plan “The Environment

– Objective: We promote a healthy Lifestyle”

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

Given the relatively small amount requested it is proposed that the request be funded from the Parks and Oasis operating budgets which can absorb this minor cost.

5. Wagga Wagga Pink Stumps Committee $1,077.00

The Wagga Wagga Pink Stumps Committee has requested in the attached letter Council’s consideration of a waiver for the hire fees for the use of Mark Taylor Oval at Bolton Park on Sunday 27October 2019 to hold a cricket game to raise funds for the McGrath Foundation.

The Wagga Wagga Pink Stumps Committee note in their attached letter – which was updated to request additional assistance on the 8 October 2019 by the Committee;

“On the 27^th October a Pink Stumps Day is being held at the Mark Taylor Oval at Bolton Park from 10.00 to 2.00pm.

We are writing to Council to seek waiver of the fees that we are going to be charged for holding this event including the cost of providing bins, along with drinking water and 3 portaloos. We are aware that there are bins at Robertson Oval and wonder if they could be moved to the Mark Taylor Oval for the day.

The Pink Stumps Day is a charity event to raise funds for the McGrath Foundation. As you may know the McGrath Foundation places breast care nurses in areas of need to help women and men through their breast cancer journey. From diagnosis right throughout treatment McGrath Breast Care Nurses are available without referral and free of charge. Currently there are 132 McGrath Breast Cares Nurses in communities throughout Australia and 70,710 families have been supported since 2005.

This is the first time that an event such as this has been staged in Wagga and we hope to make it a regular event. Local people of note as well as State Cricketers will be playing “

The above request aligns with Council’s Strategic Plan “Safe and Healthy – Objective: We have access to health and support services that cater for all our needs”

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

months.

The ground hire charges for Mark Taylor Oval is $95 (proposed to be funded from the Parks Operating budget). The cost of providing bins is approximately $200 proposed to be funded from the Solid Waste Operating budget. Portaloo hire is approximately $582 and Amenities Block cleaning $200 (ex GST) proposed to be funded from the Sewer operating budget which can absorb these minor costs. The Committee was referred to Riverina Water for assistance with their drinking water request.

6. Wagga Autism Support Group $90.00

The Wagga Autism Support Group has requested in the attached letter Council’s consideration of a waiver for the hire fees for the use of the Shakespearian Garden (Botanic Garden) on 19 October 2019 to celebrate Carers Week.

The Wagga Autism Support Group note in their attached letter;

“We do hold this event as a fundraising event but as a community building celebration “.

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

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

Given the relatively small amount requested it is proposed that the request be funded from the Parks operating budget which can absorb this minor cost.

7. Yandarra Day Celebrations $95.00

The Riverina Medical & Dental Aboriginal Corporation has requested in the attached letter Council’s consideration of a waiver for the hire fees for the use of Jack Mission Oval on 10 November 2019 for the holding of the Yandarra event.

The Riverina Medical & Dental & Dental Aboriginal Corporation note in their attached letter;

“Riverina Medical & Dental Aboriginal Corporation will be hosting Yandarra Day which will be held on Sunday 10th November 2019.

Yandarra (Wiradjuri for “mixing together”) is a day where we focus on healthy lifestyle and strengthening our community relationships. And also, a family friendly event which celebrates Indigenous culture, education and health promotion.

We invite Government and Non-Government organisations to participate in the Yandarra Day Celebrations by providing stalls with educational information, health checks and promoting community programs. The event is strictly a drug and alcohol-free event and it involves in healthy eating, light exercise and activities for all ages.”

The above request aligns with Council’s Strategic Plan “Community Place and Identity” – Outcome: We are proud of where we live and our identity”

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

Given the relatively small amount requested it is proposed that the request be funded from the Parks operating budget which can absorb this minor cost.

8. Multicultural Council of Wagga Wagga Inc (MCWW) $1,800.00

The Multicultural Council of Wagga Wagga Inc (MCWW) has requested in the attached letter Council’s consideration of a waiver for the hire fees for the use of Council Facilities for up to 20 events a year.

The MWCC note in their attached letter:

We have had arrangements in place which has allowed our organisation access free of charge for Council ran facilities being 10 use per year. As the communities continues to grow, we are now seeking the number of uses to be increased to 20 per year.

With the loss of the HSP the Multicultural Council are not in a financial position to cover venue hire on behalf of our communities, but as an organisation we are still committed to provide opportunities for people to value their culture and connect.”

Discussions were undertaken with Community Service staff who advised as follows in regard to the MCWW request:

“The Multicultural Council of Wagga Wagga (MCWW) have had a previous endorsement by Council to waive 10 uses of Council community facility fees over the period of 2014-2019 in order to support their settlement assistance program for newly arrived refugees and emerging cultural and linguistic diverse communities to settle in our City. The MCWW are now requesting a further period 2019-2023 of Council approved fee waivers with a request to increase this from 10 to 20 uses of Council community facilities. This increase is recognising the community growth in numbers and the loss of the Federal HSP funding to the MCWW, leaving this organisation with the inability to cover the venue hire on behalf of the communities they are supporting, (see attached MCWW letter). The cost of the waiver to MCWW for 20 uses is estimated $1,800 against Council’s current fees and charges schedule. The MCWW request aligns with Council’s CSP and provides an invaluable support program for families and communities to connect and settle in our City. “

It is noted that it is proposed in 2020/21 to require all Community groups to make application for financial assistance. It is therefore deemed appropriate that the requested increase in access to Council facilities be considered only for the current 2019/20 financial year.

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

Council has provided the MCWW with access to stage 10 events at Council facilities in the last 12 months at no charge.

Given the relatively small cost of each MCWW event it is proposed that the respective Council Community Facility absorb the cost of the use of the facility for MCWW events.

9. Wagga Inter Church Council $2,200.00

The Wagga Inter Church Council has requested in their attached letter Council’s consideration to providing financial assistance for their staging of “Christmas Carols in the Park 2019” at the Victory Memorial Gardens on 21 December 2019.

The Wagga Inter Church Council note in their attached letter:

“We are starting to coordinate the Wagga Inter church Carols in the Park for 2019. Wagga Wagga City Council was a great help last year, Coming on board as a financial partner.

I was wondering if Wagga Wagga City Council would be interested in coming on board as a financial partner again this year. Last year’s contribution and assistance was vital to the success of the event, and our goal is to provide a special event for Christmas to the community of Wagga.

We had about 4000 people last year and we hoping to achieve the same this year.

This year’s event will occur on Saturday 21^st December with setup commencing on Friday 20^th December at the victory memorial gardens.”

The “Christmas Carols in the Park 2019” is a free event that provides an opportunity for community members to celebrate Christmas in a family friendly environment

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

The adopted 2019/20 Combined Delivery Program and Operational Plan has allocated $2,200 for the Kurrajong Waratah Christmas Spectacular. Kurrajong Waratah are not staging a 2019 Christmas Spectacular at the Music Bowl and it is therefore proposed to reallocate these funds to the Inter Church Christmas Carols in the Park 2019.

Council provided the Wagga Inter Church Council financial assistance of $2,774 in the last 12 months i.e. contribution to the staging of the 2018 Christmas Carols in the Park.

Council in 2018 absorbed the costs of additional general waste /recycling bins required for that Christmas Carol event. It is proposed that Council absorb the costs for the provision of additional general waste/recycling bins required for the 2019 event, which would be funded from Council’s Waste Services Business Unit which has the capacity to absorb this cost. The estimated cost of the general waste/recycling bins is approximately $400.

10. Vigil in memory of Mhelody Polan Bruno $95.00

Katielle Dyall-Smith on behalf of Wagga Community members has requested Council’s consideration to the waiver of the hire fees for the Victory Memorial Gardens for the Vigil held on the 7 October 2019 in memory of Mhelody Polan Bruno.

Katielle notes in her attached letter:

“If at all possible it would be greatly appreciated if the booking fee could be waived, we are not an organisation and as such have no funds to manage, from which we could pay the $95.00 fee. This event is a vigil and no one would be making a financial gain, in any form. Additionally we won't be accepting donations either.

A sincere thank you for your time and consideration on this matter.”

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

Given the relatively small amount requested it is proposed that the request be funded from the Parks operating budget which can absorb this minor cost.

11. Tarcutta Transport & Farming Museum Incorporated $873.12

The Tarcutta Transport and Farming Museum Inc have in their attached letter requested Council’s consideration to providing financial assistance for the Council lease fees for their Museum site in Tarcutta (Lot 7009 DP 1028847) located at the corner of Gresham Street and Prospect Street, Tarcutta.

The Committee is in the early stages of establishing a Transport & Farming Museum and advise that they are seeking further grants to establish the museum and until that time do not have any funds to pay Council’s annual rent charges.

The Committee note in their attached letter:

“The committee has been unable to earn any money at the site due to no toilet amenities available for public use and the inability to use the facility to earn the required funds. It has been out of use for the past almost two years.

We are waiting on the approval of a grant to enable us to develop the site further.

The committee has supplied a financial statement which indicates there are no funds available to pay Council fees.”

The above request aligns with Council’s Strategic Plan “Community Leadership and Collaboration” – Outcome: We are active community members ”

The current rental /lease fees outstanding from 24/07/2018 to 28/02/2020 is $873.12. It is proposed that the removal of this annual rental cost be absorbed by the Property Section Cost Centre which can absorb this relatively small amount.

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

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.

It is proposed that financial assistance of $850.00 (Request 1) from the Section 356 unexpended 2019/20 budget and the remaining requests 2) to 11) be funded by the respective cost centre operating budgets given the relatively small amounts requested.

Section 356 Budget Summary
Unallocated balance of S356 fee waiver financial assistance budget 2019/20	$3,848.50
1) Wagga Wagga Local Aboriginal Education Consultative Group (WLAECG)	($850.00)
2) Gunni Thakun Cultural Association - $196.00	Funded by Parks Cost Centre
3) Climate Rescue of Wagga Inc (CROW) - $160.00	Funded by Parks Cost Centre
4) NSW Sports Federation Inc (Sport NSW) - $348.00	Funded by Parks & Oasis Cost Centres)
5) Wagga Wagga Pink Stumps Committee - $1,077.00	Funded by Parks, Waste & Sewer Operating Cost Centres
6) Wagga Autism Support Group - $90.00	Funded by Parks Cost Centre
7) Riverina Medical & Dental & Dental Aboriginal Corporation - $95.00	Funded by Parks Cost Centre
8) Multicultural Council of Wagga Wagga Inc. (MCWW) - $1,800.00 (Access to Council Community Facilities up to 20 events at an average cost of $90.00 per event - for 2019/20 Financial year	Funded by respective Council Community facility operating budget
9) Wagga Inter Church Council - $2,200.00 funded from proposed reallocation of $2,200.00 allocated to the Kurrajong Waratah Christmas Spectacular - Music Bowl which is not being held in 2019 and $400.00 Waste Bin provision for the event funded from the Waste Services operating budget.	Fund by reallocation of existing S356 budget allocation and Council Waste Services Operating budget
10) Vigil in memory of Mhelody Polan Bruno -$95.00	Funded by Parks Cost Centre
11) Tarcutta Transport & Farming Incorporated - $873.12	Funded by Property Section Cost Centre
Subtotal Fee Waivers included in this report – proposed to be funded from the Section 356 Budget	($850.00)
Balance of Section 356 fee waiver financial assistance budget for the remainder of the 2019/20 Financial Year	$2,998.50

As noted earlier, it is proposed to fund Financial Assistance requests 2) to 11) via the respective Council Cost Centre nominated which can absorb these relatively minor hire charges.

Investment Summary as at 30 September 2019

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

Institution	Rating	Closing Balance Invested 31/08/2019 $	Closing Balance Invested 30/09/2019 $	September EOM Current Yield %	September EOM % of Portfolio	Investment Date	Maturity Date	Term (mths)
*Short Term Deposits*
AMP	BBB+	2,000,000	2,000,000	2.65%	1.40%	3/06/2019	2/12/2019	6
AMP	BBB+	1,000,000	1,000,000	2.80%	0.70%	17/05/2019	13/11/2019	6
AMP	BBB+	1,000,000	0	0.00%	0.00%	6/03/2019	2/09/2019	6
AMP	BBB+	1,000,000	1,000,000	3.00%	0.70%	6/03/2019	2/12/2019	9
MyState	BBB	1,000,000	1,000,000	2.75%	0.70%	1/04/2019	1/04/2020	12
Suncorp-Metway	A+	2,000,000	2,000,000	2.26%	1.40%	28/05/2019	28/11/2019	6
NAB	AA-	1,000,000	1,000,000	1.67%	0.70%	28/08/2019	28/02/2020	6
ICBC	A	1,000,000	1,000,000	1.67%	0.70%	29/08/2019	28/08/2020	12
NAB	AA-	2,000,000	2,000,000	1.65%	1.40%	30/08/2019	6/03/2020	6
Macquarie Bank	A	0	2,000,000	1.75%	1.40%	2/09/2019	2/03/2020	6
NAB	AA-	0	1,000,000	1.70%	0.70%	10/09/2019	11/05/2020	8
*Total Short Term Deposits*		12,000,000	14,000,000	2.16%	9.80%
*At Call Accounts*
NAB	AA-	687,343	149,403	1.00%	0.10%	N/A	N/A	N/A
NAB	AA-	0	0	1.69%	0.00%	N/A	N/A	N/A
Rabobank	A+	0	0	0.00%	0.00%	N/A	N/A	N/A
CBA	AA-	3,439,248	1,658,244	1.00%	1.16%	N/A	N/A	N/A
CBA	AA-	15,374,736	15,393,261	1.60%	10.77%	N/A	N/A	N/A
*Total At Call Accounts*		19,501,327	17,200,909	1.54%	12.04%
*Medium Term Deposits*
RaboBank	A+	1,000,000	1,000,000	3.16%	0.70%	5/06/2017	6/06/2022	60
ME Bank	BBB	2,000,000	0	0.00%	0.00%	2/09/2014	2/09/2019	60
Rabobank	A+	1,000,000	1,000,000	4.10%	0.70%	5/12/2014	5/12/2019	60
BOQ	BBB+	2,000,000	2,000,000	3.10%	1.40%	7/07/2017	7/07/2020	36
AMP	BBB+	2,000,000	2,000,000	3.00%	1.40%	2/08/2018	3/02/2020	18
Rabobank	A+	1,000,000	1,000,000	3.20%	0.70%	25/08/2016	25/08/2021	60
Westpac	AA-	3,000,000	3,000,000	2.11%	2.10%	10/03/2017	10/03/2022	60
Auswide	BBB	2,000,000	2,000,000	2.95%	1.40%	5/10/2018	6/10/2020	24
ING Bank	A	1,000,000	1,000,000	2.92%	0.70%	16/10/2017	16/10/2019	24
ING Bank	A	2,000,000	2,000,000	2.92%	1.40%	6/11/2017	6/11/2019	24
BOQ	BBB+	2,000,000	2,000,000	3.35%	1.40%	3/01/2018	4/01/2022	48
ING Bank	A	1,000,000	1,000,000	2.80%	0.70%	5/01/2018	6/01/2020	24
Police Credit Union	NR	2,000,000	2,000,000	3.05%	1.40%	29/10/2018	29/10/2020	24
Australian Military Bank	NR	1,000,000	1,000,000	2.95%	0.70%	29/05/2018	29/05/2020	24
BOQ	BBB+	1,000,000	1,000,000	3.50%	0.70%	1/06/2018	1/06/2022	48
Westpac	AA-	2,000,000	2,000,000	3.02%	1.40%	28/06/2018	28/06/2021	36
Westpac	AA-	2,000,000	2,000,000	2.88%	1.40%	28/06/2018	29/06/2020	24
ING Bank	A	2,000,000	2,000,000	2.86%	1.40%	16/08/2018	17/08/2020	24
BOQ	BBB+	3,000,000	3,000,000	3.25%	2.10%	28/08/2018	29/08/2022	48
ING Bank	A	3,000,000	3,000,000	2.85%	2.10%	30/08/2018	14/09/2020	24
P&N Bank	BBB	1,000,000	1,000,000	3.10%	0.70%	16/10/2018	18/10/2021	36
Institution	Rating	Closing Balance Invested 31/08/2019 $	Closing Balance Invested 30/09/2019 $	September EOM Current Yield %	September EOM % of Portfolio	Investment Date	Maturity Date	Term (mths)
Westpac	AA-	2,000,000	2,000,000	3.05%	1.40%	13/11/2018	15/11/2021	36
Police Credit Union	NR	1,000,000	1,000,000	3.07%	0.70%	20/11/2018	20/11/2020	24
P&N Bank	BBB	1,000,000	1,000,000	3.30%	0.70%	20/11/2018	21/11/2022	48
ING Bank	A	2,000,000	2,000,000	2.93%	1.40%	29/11/2018	30/11/2020	24
NAB	AA-	2,000,000	2,000,000	3.01%	1.40%	30/11/2018	30/11/2021	36
Bendigo-Adelaide	BBB+	1,000,000	1,000,000	3.25%	0.70%	30/11/2018	30/11/2022	48
CUA	BBB	2,000,000	2,000,000	3.02%	1.40%	5/12/2018	7/12/2020	24
Newcastle Permanent	BBB	2,000,000	2,000,000	3.05%	1.40%	8/02/2019	8/02/2022	36
ING Bank	A	1,000,000	1,000,000	2.82%	0.70%	22/02/2019	22/02/2021	24
Newcastle Permanent	BBB	2,000,000	2,000,000	2.70%	1.40%	23/04/2019	26/04/2022	36
BoQ	BBB+	1,000,000	1,000,000	2.40%	0.70%	22/05/2019	23/05/2022	36
BoQ	BBB+	1,000,000	1,000,000	2.15%	0.70%	8/07/2019	10/07/2023	48
Judo Bank	NR	1,000,000	1,000,000	2.30%	0.70%	16/07/2019	16/07/2021	24
Auswide	BBB	1,000,000	1,000,000	1.95%	0.70%	12/08/2019	12/08/2022	36
Judo Bank	NR	1,000,000	1,000,000	2.15%	0.70%	20/08/2019	19/08/2021	24
Australian Military Bank	NR	1,000,000	1,000,000	1.76%	0.70%	20/08/2019	20/08/2021	24
Judo Bank	NR	0	1,000,000	1.90%	0.70%	10/09/2019	9/09/2022	36
*Total Medium Term Deposits*		59,000,000	58,000,000	2.88%	40.60%
*Floating Rate Notes - Senior Debt*
AMP	BBB+	1,003,305	1,004,028	BBSW + 135	0.70%	24/05/2016	24/05/2021	60
Teachers Mutual	BBB	1,505,185	1,507,279	BBSW + 140	1.06%	28/10/2016	28/10/2019	36
Heritage Bank	BBB+	604,095	0	0.00%	0.00%	4/05/2017	4/05/2020	36
Teachers Mutual	BBB	1,011,748	0	0.00%	0.00%	29/06/2017	29/06/2020	36
Suncorp-Metway	A+	1,009,152	1,010,344	BBSW + 97	0.71%	16/08/2017	16/08/2022	60
Westpac	AA-	2,016,675	2,019,276	BBSW + 81	1.41%	30/10/2017	27/10/2022	60
ME Bank	BBB	1,510,802	1,512,964	BBSW + 125	1.06%	9/11/2017	9/11/2020	36
NAB	AA-	2,012,224	2,014,126	BBSW + 80	1.41%	10/11/2017	10/02/2023	63
ANZ	AA-	1,510,570	1,512,332	BBSW + 77	1.06%	18/01/2018	18/01/2023	60
Bendigo-Adelaide	BBB+	504,575	505,244	BBSW + 105	0.35%	25/01/2018	25/01/2023	60
Newcastle Permanent	BBB	1,517,678	1,519,470	BBSW + 140	1.06%	6/02/2018	6/02/2023	60
Westpac	AA-	2,022,207	2,013,141	BBSW + 83	1.41%	6/03/2018	6/03/2023	60
UBS	A+	2,017,133	2,007,970	BBSW + 90	1.41%	8/03/2018	8/03/2023	60
Heritage Bank	BBB+	1,415,763	1,409,554	BBSW + 123	0.99%	29/03/2018	29/03/2021	36
ME Bank	BBB	1,615,550	1,618,011	BBSW + 127	1.13%	17/04/2018	16/04/2021	36
ANZ	AA-	2,019,080	2,019,929	BBSW + 93	1.41%	9/05/2018	9/05/2023	60
NAB	AA-	2,017,763	2,019,631	BBSW + 90	1.41%	16/05/2018	16/05/2023	60
CBA	AA-	2,019,669	2,021,486	BBSW + 93	1.41%	16/08/2018	16/08/2023	60
Bank Australia	BBB	754,072	755,368	BBSW + 130	0.53%	30/08/2018	30/08/2021	36
CUA	BBB	609,122	606,149	BBSW + 125	0.42%	6/09/2018	6/09/2021	36
AMP	BBB+	1,505,283	1,497,973	BBSW + 108	1.05%	10/09/2018	10/09/2021	36
NAB	AA-	2,026,107	2,017,405	BBSW + 93	1.41%	26/09/2018	26/09/2023	60
Bendigo-Adelaide	BBB+	1,008,943	1,010,403	BBSW + 101	0.71%	19/10/2018	19/01/2022	39
CBA	AA-	3,061,885	3,064,123	BBSW + 113	2.14%	11/01/2019	11/01/2024	60
Westpac	AA-	3,061,360	3,064,727	BBSW + 114	2.15%	24/01/2019	24/04/2024	63
ANZ	AA-	2,543,035	2,544,741	BBSW + 110	1.78%	8/02/2019	8/02/2024	60
NAB	AA-	2,028,005	2,028,843	BBSW + 104	1.42%	26/02/2019	26/02/2024	60
Bank of China Australia	A	1,508,470	1,511,264	BBSW + 100	1.06%	17/04/2019	17/10/2022	42
Westpac	AA-	2,515,184	2,517,851	BBSW + 88	1.76%	16/05/2019	16/08/2024	63
Institution	Rating	Closing Balance Invested 31/08/2019 $	Closing Balance Invested 30/09/2019 $	September EOM Current Yield %	September EOM % of Portfolio	Investment Date	Maturity Date	Term (mths)
Suncorp-Metway	A+	1,246,207	1,248,009	BBSW + 78	0.87%	30/07/2019	30/07/2024	60
ANZ	AA-	2,000,935	2,001,990	BBSW + 77	1.40%	29/08/2019	29/08/2024	60
HSBC	AA-	0	2,499,775	BBSW + 83	1.75%	27/09/2019	27/09/2024	60
*Total Floating Rate Notes - Senior Debt*		51,201,784	52,083,405		36.46%
*Managed Funds*
NSW Tcorp	NR	1,564,536	1,581,778	1.10%	1.11%	17/03/2014	1/09/2024	125
*Total Managed Funds*		1,564,536	1,581,778	1.10%	1.11%
TOTAL CASH ASSETS, CASH EQUIVALENTS & INVESTMENTS		143,267,647	142,866,092		100.00%
LESS: RIVERINA REGIONAL LIBRARY (RRL) CASH AT BANK		3,719,572	3,457,760
TOTAL WWCC CASH ASSETS, CASH EQUIVALENTS & INVESTMENTS		139,548,075	139,408,332

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 12%, with Floating Rate Notes (FRNs) around 37% 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 slightly from the previous month’s balance, down from $139.5M to $139.4M.

Monthly Investment Movements

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

Institution and Type	Amount	Investment Term	Interest Rate	Comments
AMP Bank Term Deposit	$1M	6 months	3.00%	This term deposit was redeemed on maturity to allow for compliance with credit limits, following the AMP credit rating downgrade in August 2019.
ME Bank Term Deposit	$2M	5 years	4.28%	This term deposit was redeemed on maturity and funds were reinvested in a new 6-month term deposit with Macquarie Bank (see below).
Heritage Bank Floating Rate Note	$600K	3 years	BBSW + 130bps	This floating rate note was sold prior to maturity, with funds reinvested in a new 5-year HSBC floating rate note (see below). Council recognised a capital gain of $2,892.
Teachers Mutual Bank Floating Rate Note	$1M	3 years	BBSW + 142bps	This floating rate note was sold prior to maturity, with funds reinvested in a new 5-year HSBC floating rate note (see below). Council recognised a capital gain of $6,550.

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

Institution and Type	Amount	Investment Term	Interest Rate	Comments
Macquarie Bank Term Deposit	$2M	6 months	1.75%	The Macquarie Bank rate of 1.75% compared favourably to the rest of the market for this investment term.
NAB Term Deposit	$1M	8 months	1.70%	The NAB rate of 1.70% compared favourably to the rest of the market for this investment. This term was chosen to fill a maturity gap within Council’s investment portfolio.
Judo Bank Term Deposit	$1M	3 years	1.90%	The Judo Bank rate of 1.90% 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.
HSBC Floating Rate Note	$2.5M	5 years	BBSW + 83	Council’s independent Financial Advisor advised this Floating Rate Note represented good value.

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

Monthly Investment Performance

Interest/growth/capital gains for the month totalled $254,960, which compares unfavourably with the budget for the period of $298,250, underperforming budget for the month by $43,290.

Council’s underperformance against budget for September was mainly due to a negative movement for Councils Floating Rate Note portfolio. During the month of September trading margins for these investments widened, resulting in a reduction in the principal value of these investments. It is worth noting that a majority of Council’s floating rate notes are still trading at a premium and Council continues to receive its quarterly interest payments.

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 17 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* (1.74%), Council’s investment portfolio returned 2.40% (annualised) for September. Cash and At-Call accounts returned 1.44% (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 2.91%, outperforming the AusBond Bank Bill index by 1.17%.

* 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

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 - Wagga Wagga Local Aboriginal Education Consultative Group (WLAECG)
2 ⇩.	Section 356 Financial Assistance Request - Gunni Thakun Cultural Association
3 ⇩.	Section 356 Financial Assistance request - Climate Rescue of Wagga Inc (CROW)
4 ⇩.	Section 356 Financial Assistance Request - Sports NSW
5 ⇩.	Section 356 Financial Assistance Request - Wagga Pink Stumps Committee
6 ⇩.	Section 356 Financial Assistance Request - Wagga Austism Support Group
7 ⇩.	Section 356 Financial Assistance Request - Riverina Medical & Dental Aboriginal Corporation
8 ⇩.	Yandarra Day - Sponsorship letter accompanying fee waiver request
9 ⇩.	Section 356 Financial Assistance Request - The Multicultural Council of Wagga Wagga Inc
10 ⇩.	Section 356 Financial Assistance Request - Wagga Inter Church Council
11 ⇩.	Section 356 Financial Assistance Request - Vigil Memorial Gardens
12 ⇩.	Section 356 Financial Assistance Request - Tarcutta Transport & Farming Museum Inc

No.

ITEM

UNMITIGATED RISK RATING

ESTIMATED

COST

FUNDING SOURCE

APPROVAL

RP1

Alpine Classic Rally – On-Street Event

Moderate

Nil

Event Organiser

Approved under staff delegation

RP2

Gears & Beers – On-Street Event

High

$2,500

Event Road Closure Budget

Approved under staff delegation

RP3

Lake Run & Ride – On-Street Event

High

$6,500

Event Road Closure Budget

Approved under staff delegation

RP4

Coleman St and Macleay St – Design of Proposed Intersection Treatment

Moderate

$2,000

Unfunded – proposed to be funded from the Design Forward Planning Budget

Seeking Council endorsement

RP5

Featherwood Rd – Proposed NO TRUCKS signs

High

$550

Lines and Signs Budget

Seeking Council endorsement

RP6

Fife Street Forest Hill – Proposal to Remove the Existing Taxi Zone

Nil

$100

Lines and Signs Budget

Seeking Council endorsement

RP7

Harris Road and Old Narrandera Rd – Temporary Intersection Design

High

Nil

Developer Funded

Seeking Council endorsement

RP8

McKinnon St and Docker St – Installation of a Length of Double Unbroken Dividing Line in McKinnon St

Moderate

$250

Lines and Signs Budget

Seeking Council endorsement

Item

Total Budget Required

Proposed Funding Source

Current Proposed Funding Source Budget

Current Funding Source Expenditure including commitments as at 17/10/2019

Current Available Budget

RP2,

RP3,

$2,500

$6,500

$9,000

Event Road Closure

$40,000

$13,528

$26,472

RP5, RP6,

RP8

$550

$100

$250

$900

Lines & Signs

$340,189

$111,142

$229,047

RP4

$2,000

Unfunded -

Proposed to fund from the Design Forward Planning Budget

$100,000

$26,799

$73,201

Applicant	Pig Improvement Company Australia Pty Ltd (PICA)
Owner	Sunpork Pty Ltd Directors: Donald Clarendon Taylor John Beauchamp Cameron Brian John McLean Kenneth Beauchamp Cameron Simon Alexander Hall Pamela Anne McLean Enzo Allara Robert John van Barneveld David Roger Alexander Hall Secretary: Geoffrey Miller
Development Cost	$9,000,000
Development Description	Pig Farm (Intensive Livestock Agriculture) – 15,000 Standard Pig Unit Facility and associated infrastructure

1 ⇨.	DA18-0408 - Environmental Impact Statement - Provided under separate cover
2 ⇨.	DA18-0408 - Site Plans - Provided under separate cover
3 ⇨.	DA18/0408 - Building Plans - Provided under separate cover
4 ⇨.	DA18/0408 - Government Submissions - Provided under separate cover
5 ⇨.	DA18-0408 - Redacted Public Submissions - Provided under separate cover
6 ⇨.	DA18-0408 - Applicant's Response to Government Submissions - Provided under separate cover
7 ⇨.	DA18-0408 - Applicant's Response to Public Submissions - Provided under separate cover
8 ⇨.	DA18-0408 - Section 4.15 Assessment Report - Provided under separate cover
9 ⇨.	DA18-0408 - Councillor Briefing Paper - Provided under separate cover

Item Number	Fee and Charge Description	Pricing Policy ID	Basis	2018/19 Fee (exclusive of GST)	GST	2019/20 Fee (inclusive of GST)
0924	Part F(7) – Use a standing vehicle or any article for the purpose of selling any article in a public place (Fee waived for charitable organisations)	C	Each	$145.00	$0.00	$350.00

1 ⇩.	Invitation from Kunming
2 ⇩.	Schedule of the 4th Kunming International Sister City