Agenda of Ordinary Meeting of Council

Report submitted to the Ordinary Meeting of Council on Monday 20 January 2020

RP-2

RP-2 Financial Performance Report as at 31 December 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 December 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 31 December 2019 and note the forecasted balanced budget position presented

b rescind the $7,400 donation to the Rotary Club of Murrumbidgee (Council Officers Report RP-4 22 July 2019 Minute reference 19/254 and correct the allocation of the $7,400 annual grant to the Rotaract Club of Wagga Wagga

c in accordance with Section 356 of the Local Government Act, provide financial assistance to Wagga Wagga Water Polo for the sum of $2,670

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 December 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 December 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 December, when compared to budget. This is mainly due to a negative result for Councils TCorp Long Term Growth fund, which returned -0.29% for the month.

Key Performance Indicators

OPERATING INCOME

Total operating income is 50% of approved budget, which is on budget for the end of December (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 80%.

OPERATING EXPENSES

Total operating expenditure is 48% of approved budget and is tracking within budget for the full financial year.

CAPITAL INCOME

Total capital income is 13% 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 34% of approved budget (including ‘Potential Projects’). Excluding ‘Potential Projects’ capital works budgets, the capital expenditure including commitments is 48% of approved budget.

Finance and the Project Delivery Office (PMO) are currently reviewing the 2019/20 capital project budgets with a report to be presented to Council regarding the reset of capital works budgets from 2019/20 into 2020/21 and future financial years.

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

WAGGA WAGGA CITY COUNCIL STATEMENT OF FINANCIAL PERFORMANCE 1 JULY 2019 TO 31 DECEMBER 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)	(63,636)	(69,800,529)	(34,734,154)	0	(34,734,154)	50%
User Charges & Fees	(28,440,057)	(39,500)	(28,479,557)	(13,731,894)	0	(13,731,894)	48%
Interest & Investment Revenue	(3,774,001)	0	(3,774,001)	(1,858,594)	0	(1,858,594)	49%
Other Revenues	(3,053,633)	39,930	(3,013,703)	(2,043,099)	0	(2,043,099)	68%
Operating Grants & Contributions	(14,280,296)	4,662,992	(9,617,304)	(4,771,429)	0	(4,771,429)	50%
Capital Grants & Contributions	(56,263,733)	1,299,606	(54,964,127)	(6,840,806)	0	(6,840,806)	12%
Total Revenue	(175,548,613)	5,899,393	(169,649,221)	(63,979,976)	0	(63,979,976)	38%

Expenses
Employee Benefits & On-Costs	46,012,119	(9,356)	46,002,763	22,564,603	88,263	22,652,865	49%
Borrowing Costs	3,587,823	(963,622)	2,624,202	1,425,774	0	1,425,774	54%
Materials & Contracts	32,357,210	7,229,038	39,586,248	15,813,294	3,732,686	19,545,980	49%
Depreciation & Amortisation	34,843,073	0	34,843,073	17,421,537	0	17,421,537	50%
Other Expenses	13,015,295	136,169	13,151,464	4,844,546	35,360	4,879,906	37%
Total Expenses	129,815,520	6,392,229	136,207,749	62,069,753	3,856,309	65,926,062	48%

Net Operating (Profit)/Loss	(45,733,093)	12,291,621	(33,441,472)	(1,910,222)	3,856,309	1,946,086

Net Operating (Profit)/Loss before Capital Grants & Contributions	10,530,640	10,992,015	21,522,655	4,930,584	3,856,309	8,786,892

Capital / Reserve Movements
Capital Exp - Renewals	34,034,738	5,585,409	39,620,147	12,979,247	8,330,754	21,310,001	54%
Capital Exp - New Projects	42,696,132	4,832,926	47,529,058	4,052,518	15,997,426	20,049,944	42%
Capital Exp - Project Concepts	38,364,925	39,435	38,404,360	116,394	66,167	182,561	0%
Loan Repayments	3,380,744	(21,035)	3,359,708	1,690,372	0	1,690,372	50%
New Loan Borrowings	(21,222,532)	(4,611,147)	(25,833,679)	0	0	0	0%
Sale of Assets	(1,502,910)	(1,745,414)	(3,248,324)	(507,243)	0	(507,243)	16%
Net Movements Reserves	(15,174,931)	(16,371,796)	(31,546,727)	35,500	27,000	62,500	0%
Total Cap/Res Movements	80,576,166	(12,291,622)	68,284,545	18,366,789	24,421,347	42,788,135

	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	16,456,566	28,277,655	44,734,222

Add back Depreciation Expense	34,843,073	0	34,843,073	17,421,537	0	17,421,537	50%

Cash Budget (Surplus)/Deficit	0	0	0	(964,970)	28,277,655	27,312,685

Revised Budget Result - Surplus/(Deficit)

$’000s

Original 2019/20 Budget Result as adopted by Council

Total Budget Variations approved to date

Budget Variations for December 2019

Proposed Revised Budget result for 31 December 2019

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

*Budget Variation*	*Amount*	*Funding Source*	*Net Impact* *Fav/ (Unfav)*
*1 – Community Leadership and Collaboration*
Election Expenses	$8K	Risk Improvement Projects ($8K)	Nil
Local Government Elections will be held in the state of NSW on Saturday 12 September 2020. Council is preparing a pre-election program including promotion and delivery of up to three pre-election seminars for persons considering nominating for a position as a Councillor. Opportunities for some of these costs to be met as part of funded programs and current memberships are in progress, however additional funds will be required to meet any shortfall in funding and also to host the events, including possible livestreaming of at least one session to improve accessibility. It is proposed to fund the variation from existing risk improvement project budgets.

StateCover Performance Rebate Distribution Income StateCover WHS Incentive Income	($108K) ($25K)	Workers Compensation Reserve $133K	Nil
Council has been notified by StateCover that Council will receive $108K for a Mutual Performance Rebate and an additional $25K above budget for the Work Health and Safety Incentive. It is proposed to allocate the funds to the Workers Compensation Reserve, to be utilised for future Work Health and Safety Programs.
*2 – Safe and Healthy Community*
Smarter Sportsgrounds Systems	$28K	Local Government NSW Grant ($28K)	Nil
Council has been successful in securing grant funding of $35K from LG NSW under Increasing Resilience to Climate Change Round 2 for the Smarter Sportsground Systems Project. The grant will enable Council to upgrade the current irrigation controllers at the Jubilee Sporting Complex. The new controllers will have the capability to produce reports on water usage, connect to moisture sensors, control water usage programs across sites and enable mobile capabilities to monitor and address issues that arise on site. $28K (80%) will be received in 2019/20 and a further $7K (20%) in 2021/22. Estimated Project Completion: November 2021
Bushfire Fundraising Event	$10K	Community Works Reserve ($10K)	Nil
Council have been requested to assist with the organisation and support of a Rural Fire Service (RFS) family friendly community event called ‘Raise Your Voice’ on Saturday 15 February 2020 at the Wagga Wagga Showground. This proposed charity concert has the sole purpose of raising funds and awareness with all proceeds donated directly back to the RFS. Council’s contribution towards the event would include funding for the security, generator power supply for the stage, insurance costs, audio technician hire, venue power, labour for the kids amusements and garbage collection.
*3 – Growing Economy*
Wiradjuri Walking Track Masterplan	$88K	Crown Lands Department of Planning, Industry and Environment Grant ($88K)	Nil
Council has been successful in securing grant funds from Crown Lands, Department of Planning, Industry & Environment under the Crown Lands Recreational Trails Program to develop a masterplan for the 42-kilometre Wiradjuri Walking Track. It is envisaged that the masterplan will guide the development of the track for the next 10-15 years. Estimated Project Completion: June 2020
*4 – Community Place and Identity*
Wilga Park Mural	$50K	Federal Government Grant – Stronger Communities ($10K) Public Art Capital Works ($35K) Works In Kind ($5K)	Nil
Council has been successful in securing grant funds from the Federal Governments Stronger Communities Programme to transform Wilga Park (Kooringal). This will be done by installing a mural to a large adjacent wall which is currently a target of graffiti. This grant will contribute to increasing the neighbourhood amenity, deter graffiti and increase feelings of pride and safety. It is proposed to fund Councils 80% contribution by way of in-kind project management ($5K) and existing public art budgets ($35K). Estimated Project Completion: 30 June 2020
Entwine Insect Trail	$34K	Federal Government Grant – Stronger Communities ($10K) Entwine Project ($24K)	Nil
Council has been successful in securing grant funds under the Federal Government Stronger Communities Program Round 5 for an insect trail as part of the Entwine Project schedule of works. The Entwine Project will increase the connection between the Museum of the Riverina and the Botanic Gardens with accessible pathways engaging interpretations and hands-on interactives. An accessible concrete footpath will stretch from the Botanic Gardens beneath Lord Baden Powell Drive to the Museum. It is proposed to fund Councils portion from in-kind works and existing Entwine budgets. Estimated Project Completion: 30 June 2020
*5 – The Environment*
Art Gallery Humidity Control System	$21K	Art Gallery Operating expenditure and income budgets ($21K)	Nil
Council has been successful in securing $192K grant funds under the NSW Club Grants Category 3 Infrastructure Grants to upgrade the Art Gallery with a new Humidity Control System at an estimated total project cost of $234K. Securing these funds means that the Art Gallery will be able to borrow and display works from Australian and International Museums that previously was not possible due to being unable to meet stringent environmental standards for the touring of these artworks. The required $42K Council contribution will be funded from within existing Art Gallery operating expenditure and income budgets. It is estimated that $21K will be expended during the 2019/20 financial year and $213K will be expended during the 2020/21 financial year. Estimated Project Completion: 30 June 2021
Renew Community Amenities – Anderson Oval	$25K	Community Amenities Reserve ($25K)	Nil
The budget for the Anderson Oval Amenities Upgrade is currently scheduled for completion during the 2020/21 financial year. As the project will need to be delivered in the summer months (cricket season) of 2020/21, it is proposed to commence the design phase now. The proposal is to bring forward $25K into the 2019/20 financial year to fund the full design including the structural component, project management and a contingency. Estimated Project Completion: 30 June 2021
SURPLUS/(DEFICIT)			$0K

Current Restrictions

RESERVES SUMMARY
31 DECEMBER 2019
	CLOSING BALANCE 2018/19	ADOPTED RESERVE TRANSFERS 2019/20	BUDGET VARIATIONS APPROVED UP TO COUNCIL MEETING 16.12.19	PROPOSED CHANGES for Council Resolution	REVISED BALANCE

Externally Restricted
Developer Contributions - Section 7.11	(23,836,289)	3,427,074	(2,950,291)		(23,359,506)
Developer Contributions - Section 7.12	97,487	(32,500)	154,012		218,999
Developer Contributions – S/Water DSP S64	(6,551,347)	2,579,329	(320,101)		(4,292,118)
Sewer Fund	(31,115,819)	155,636	1,439,467		(29,520,716)
Solid Waste	(21,521,767)	2,164,970	1,553,683		(17,803,113)
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	574,006		(366,295)
Total Externally Restricted	(94,524,428)	11,050,106	4,573,075	0	(78,901,247)

Internally Restricted
Airport	(442,321)	(522,440)	15,919		(948,842)
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	847,098		72,432
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	29,240		(87,904)
Civic Theatre Technical Infrastructure	(82,706)	10,000	65,000		(7,706)
Civil Projects	(155,883)	24,000	(10,133)		(142,016)
Community Amenities	(76,763)	(214,928)	0	25,000	(266,691)
Community Works	(86,412)	(32,217)	53,500	9,520	(55,609)
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	1,577,494		59,096
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
31 DECEMBER 2019
	CLOSING BALANCE 2018/19	ADOPTED RESERVE TRANSFERS 2019/20	BUDGET VARIATIONS APPROVED UP TO COUNCIL MEETING 16.12.19	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)	222,315		(776,415)
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)	(158,608)		(208,461)
LEP Preparation	(2,667)		0		(2,667)
Livestock Marketing Centre	(3,311,635)	972,792	(121,861)		(2,460,703)
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)		156,530		(2,500)
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)		150,000		(19,421)
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)		43,288		(13,261)
Subdivision Tree Planting	(702,868)	(20,000)	90,000		(632,868)
Sustainable Energy	(527,244)	389,333	37,732		(100,179)
Unexpended External Loans	(431,337)		431,337		0
Workers Compensation	(93,251)		0	(133,461)	(226,712)
Total Internally Restricted	(33,127,305)	2,706,471	12,077,542	(98,941)	(18,442,234)

Total Restricted	(127,651,734)	13,756,577	16,650,618	(98,941)	(97,343,480)

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

Total Cash, Cash Equivalents and Investments	(133,377,528)	13,756,577	16,650,618	(98,941)	(103,069,274)

*The Fit for the Future Reserve is showing a proposed deficit for the 2019/20 closing balance. This is due to the interim funding transferred from this reserve in 2018/19 for the Bomen land acquisitions which will be paid back from the Sewer Reserve once Ministerial approval is finalised.

^ The CBD Carparking Facilities Reserve is showing a proposed deficit for the 2019/20 closing balance. This is due to funding being allocated in 2019/20 for projects which have since been identified for carryover to 2020/21 for delivery which will be presented to Council as part of the Capital Works Reset Report.

Amendment of Council Officer’s Report RP- 4 Annual Grants 2019/20 22 July 2019

The Manager of Community Services has advised Finance staff that an amendment due to a change in the advised recipient in relation to the Annual Grant Program 2019/20 (Council meeting 22 July 2019) Minute Number 19/254 is required (see attached memo).

“Rotary Club of Murrumbidgee Wagga Wagga Inc was approved Annual Grant 2019/20 in value of $7,400 for project “Rotaract Park” to upgrade the facilities at this location. Recently the President of Rotaract Club of Wagga Wagga has contacted Council requesting that Rotaract Club of Wagga Wagga be paid directly instead of being auspiced by the Rotary Club of Murrumbidgee Wagga Wagga Inc. The proposed project scope remains unchanged.”

As noted above Council as part of the Annual Grants 2019/20 Council Officer’s Report RP-4 approved an allocation of $7,400 to the Rotary Club of Murrumbidgee for improvements at Rotaract Park (Kooringal)

The above project was intended to be undertaken by the Rotaract Club of Wagga Wagga who have requested that the above funds be allocated to the Rotaract Club directly to allow completion of the project.

The proposed Council resolution rescinds the $7,400 donation to the Rotary Club of Murrumbidgee Wagga Wagga and amends the allocation of the $7,400 donation to the Rotaract Club of Wagga Wagga.

Section 356 Financial Assistance Requests

One Section 356 financial assistance request has been received for the 20 January 2020 Ordinary Council meeting, which is noted below for Council’s consideration:

1. Wagga Wagga Water Polo - $2,670

The President of Wagga Wagga Water Polo has written to Council (see attached letter) requesting Council’s consideration for the provision of financial assistance by waiving the hire fees for the use of the Oasis Aquatic Centre Pool for the staging of the NSW Water Polo Junior Championships on Saturday 8 February 2020 and Sunday 9 February 2020.

The writer notes:

The NSW Junior Country Championships 2020 will see an estimated 370 players and an estimated 215 spectators travel to Wagga over 3 days to participate in the championship”

The writer further notes :

“With the amount of benefits this Championship will bring our City and Regional Aquatic Centre and the amount already invested from our local association to host the event we as an Association are asking that Wagga Wagga City Council cover the $1,335 per day pool hire at a total cost of $2,670.”

The above request aligns with Council’s Strategic Plan “Safe and Healthy Community – Objective: We promote a healthy lifestyle”

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

Given the relatively small amount requested in terms of the overall revenue budget of approximately $1.8M for 2019/2020 for the Oasis Aquatic Centre it is proposed that the request be absorbed from the Oasis Cost Centre budget.

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 $2,670 be funded from the Oasis Aquatic Centre 2019/20 Operating budget.

Section 356 Budget Summary
Unallocated balance of S356 fee waiver financial assistance budget 2019/20	$2,544.50
1) Wagga Wagga Water Polo - $2,670	Funded from Oasis Aquatic Centre Cost Centre
Balance of Section 356 fee waiver financial assistance budget for the remainder of the 2019/20 Financial Year	$2,544.50

Investment Summary as at 31 December 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 30/11/2019 $	Closing Balance Invested 31/12/2019 $	December EOM Current Yield %	December EOM % of Portfolio	Investment Date	Maturity Date	Term (mths)
*Short Term Deposits*
AMP	BBB+	2,000,000	2,000,000	2.10%	1.40%	2/12/2019	1/06/2020	6
AMP	BBB+	1,000,000	1,000,000	2.00%	0.70%	13/11/2019	11/05/2020	6
AMP	BBB+	1,000,000	1,000,000	2.10%	0.70%	2/12/2019	1/06/2020	6
MyState	BBB	1,000,000	1,000,000	2.75%	0.70%	1/04/2019	1/04/2020	12
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+	2,000,000	2,000,000	1.75%	1.40%	2/09/2019	2/03/2020	6
NAB	AA-	1,000,000	1,000,000	1.70%	0.70%	10/09/2019	11/05/2020	8
*Total Short Term Deposits*		12,000,000	12,000,000	1.91%	8.38%
*At Call Accounts*
NAB	AA-	277,871	1,146,326	0.75%	0.80%	N/A	N/A	N/A
CBA	AA-	2,499,313	1,409,593	0.75%	0.98%	N/A	N/A	N/A
CBA	AA-	19,929,650	14,947,574	1.60%	10.44%	N/A	N/A	N/A
*Total At Call Accounts*		22,706,834	17,503,492	1.48%	12.22%
*Medium Term Deposits*
RaboBank	A+	1,000,000	1,000,000	3.16%	0.70%	5/06/2017	6/06/2022	60
Rabobank	A+	1,000,000	0	0.00%	0.00%	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	1.99%	2.09%	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
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	BBB+	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%	2.09%	28/08/2018	29/08/2022	48
ING Bank	A	3,000,000	3,000,000	2.85%	2.09%	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
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
Institution	Rating	Closing Balance Invested 30/11/2019 $	Closing Balance Invested 31/12/2019 $	December EOM Current Yield %	December EOM % of Portfolio	Investment Date	Maturity Date	Term (mths)
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	BBB+	1,000,000	1,000,000	1.76%	0.70%	20/08/2019	20/08/2021	24
Judo Bank	NR	1,000,000	1,000,000	1.90%	0.70%	10/09/2019	9/09/2022	36
Auswide	BBB	1,000,000	1,000,000	1.72%	0.70%	3/10/2019	4/10/2022	36
ICBC	A	2,000,000	2,000,000	2.03%	1.40%	6/11/2019	6/11/2024	60
ICBC	A	2,000,000	2,000,000	1.83%	1.40%	28/11/2019	28/11/2024	60
Judo Bank	NR	0	1,000,000	2.20%	0.70%	5/12/2019	3/12/2021	24
*Total Medium Term Deposits*		60,000,000	60,000,000	2.76%	41.89%
*Floating Rate Notes - Senior Debt*
AMP	BBB+	1,002,057	1,003,883	BBSW + 135	0.70%	24/05/2016	24/05/2021	60
Suncorp-Metway	A+	1,008,397	1,009,894	BBSW + 97	0.71%	16/08/2017	16/08/2022	60
Westpac	AA-	2,014,318	2,016,953	BBSW + 81	1.41%	30/10/2017	27/10/2022	60
ME Bank	BBB	1,508,992	1,510,881	BBSW + 125	1.05%	9/11/2017	9/11/2020	36
NAB	AA-	2,012,436	2,015,711	BBSW + 80	1.41%	10/11/2017	10/02/2023	63
ANZ	AA-	1,510,217	1,512,853	BBSW + 77	1.06%	18/01/2018	18/01/2023	60
Bendigo-Adelaide	BBB+	503,983	504,597	BBSW + 105	0.35%	25/01/2018	25/01/2023	60
Newcastle Permanent	BBB	1,516,713	1,518,177	BBSW + 140	1.06%	6/02/2018	6/02/2023	60
Westpac	AA-	2,018,638	2,012,790	BBSW + 83	1.41%	6/03/2018	6/03/2023	60
UBS	A+	2,015,837	2,008,853	BBSW + 90	1.40%	8/03/2018	8/03/2023	60
Heritage Bank	BBB+	1,413,978	1,408,422	BBSW + 123	0.98%	29/03/2018	29/03/2021	36
ME Bank	BBB	1,613,382	1,615,414	BBSW + 127	1.13%	17/04/2018	16/04/2021	36
ANZ	AA-	2,019,363	2,022,670	BBSW + 90	1.41%	9/05/2018	9/05/2023	60
NAB	AA-	2,017,941	2,020,960	BBSW + 90	1.41%	16/05/2018	16/05/2023	60
CBA	AA-	2,020,243	2,023,992	BBSW + 93	1.41%	16/08/2018	16/08/2023	60
Bank Australia	BBB	754,560	755,755	BBSW + 130	0.53%	30/08/2018	30/08/2021	36
CUA	BBB	607,967	605,516	BBSW + 125	0.42%	6/09/2018	6/09/2021	36
AMP	BBB+	1,503,693	1,498,267	BBSW + 108	1.05%	10/09/2018	10/09/2021	36
NAB	AA-	2,025,277	2,018,843	BBSW + 93	1.41%	26/09/2018	26/09/2023	60
Bendigo-Adelaide	BBB+	1,007,820	1,009,156	BBSW + 101	0.70%	19/10/2018	19/01/2022	39
CBA	AA-	3,059,862	3,066,290	BBSW + 113	2.14%	11/01/2019	11/01/2024	60
Westpac	AA-	3,057,616	3,062,406	BBSW + 114	2.14%	24/01/2019	24/04/2024	63
ANZ	AA-	2,543,728	2,549,092	BBSW + 110	1.78%	8/02/2019	8/02/2024	60
NAB	AA-	2,027,324	2,031,243	BBSW + 104	1.42%	26/02/2019	26/02/2024	60
Bank of China Australia	A	1,508,080	1,510,411	BBSW + 100	1.05%	17/04/2019	17/10/2022	42
Westpac	AA-	2,515,561	2,521,890	BBSW + 88	1.76%	16/05/2019	16/08/2024	63
Suncorp-Metway	A+	1,246,714	1,249,203	BBSW + 78	0.87%	30/07/2019	30/07/2024	60
ANZ	AA-	2,003,601	2,008,629	BBSW + 77	1.40%	29/08/2019	29/08/2024	60
HSBC	AA-	2,507,250	2,499,844	BBSW + 83	1.75%	27/09/2019	27/09/2024	60
Bank Australia	BBB	0	1,502,048	BBSW + 90	1.05%	2/12/2019	2/12/2022	36
*Total Floating Rate Notes - Senior Debt*		50,565,547	52,094,642		36.37%
Institution	Rating	Closing Balance Invested 30/11/2019 $	Closing Balance Invested 31/12/2019 $	December EOM Current Yield %	December EOM % of Portfolio	Investment Date	Maturity Date	Term (mths)
*Managed Funds*
NSW Tcorp	NR	1,622,982	1,618,323	-0.29%	1.13%	17/03/2014	1/12/2024	128
*Total Managed Funds*		1,622,982	1,618,323	-0.29%	1.13%
TOTAL CASH ASSETS, CASH EQUIVALENTS & INVESTMENTS		146,895,363	143,216,457		100.00%
LESS: RIVERINA REGIONAL LIBRARY (RRL) CASH AT BANK		3,057,615	2,836,855
TOTAL WWCC CASH ASSETS, CASH EQUIVALENTS & INVESTMENTS		143,837,748	140,379,602

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 except for the “BBB” rated category. This over allocation to the “BBB” rated category is the result of number of recent credit rating movements including the downgrade of AMP Bank in August 2019 (from A- to BBB+) and Australian Military Bank receiving a formal credit rating in late November 2019 (from NR to BBB+). Over the December month, Councils overall total portfolio balance reduced, which can also be attributed to the slight overweight position. Overall, these movements have resulted in a marginally over exposure of 0.37%, or $535K, in this category. Council’s Finance staff will be managing this marginal over exposure over the coming months with an aim to fall within the current policy limits.

Council’s credit quality limits are outlined in the below table and Rating Allocation chart.

Investment Portfolio Balance

Council’s investment portfolio balance has decreased from the previous month’s balance, down from $143.8M to $140.4M.

Monthly Investment Movements

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

Institution and Type

Amount

Investment

Term

Interest

Rate

Comments

Rabobank Term Deposit

$1M

5 years

4.10%

This term deposit was redeemed on maturity and funds were reinvested in a new 2-year term deposit with Judo Bank (see below).

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

Institution and Type	Amount	Investment Term	Interest Rate	Comments
Judo Bank Term Deposit	$1M	2 years	2.20%	The Judo Bank rate of 2.20% compared favourably to the rest of the market for this investment term. This term was chosen to allow Council to lock in an attractive longer term rate, given the likelihood of another interest rate cut.
Bank Australia Floating Rate Note	$1.5M	3 years	BBSW + 90bps	Council’s independent Financial Advisor advised this Floating Rate Note represented good value.

Institution and Type

Amount

Investment

Term

Interest

Rate

Comments

Judo Bank Term Deposit

$1M

2 years

2.20%

The Judo Bank rate of 2.20% compared favourably to the rest of the market for this investment term. This term was chosen to allow Council to lock in an attractive longer term rate, given the likelihood of another interest rate cut.

Bank Australia Floating Rate Note

$1.5M

3 years

BBSW + 90bps

Council’s independent Financial Advisor advised this Floating Rate Note represented good value.

Rollovers – Council rolled over the following investment securities during December 2019:

Institution and Type	Amount	Investment Term	Interest Rate	Comments
AMP Term Deposit	$1M	6 months	2.10%	This term deposit was a 9-month investment at 3.00% and was rolled at maturity into a 6-month term deposit at 2.10%.
AMP Term Deposit	$2M	6 months	2.10%	This term deposit was a 6-month investment at 2.65% and was rolled at maturity into a 6-month term deposit at 2.10%.

Institution and Type

Amount

Investment

Term

Interest

Rate

Comments

AMP Term Deposit

$1M

6 months

2.10%

This term deposit was a 9-month investment at 3.00% and was rolled at maturity into a 6-month term deposit at 2.10%.

AMP Term Deposit

$2M

6 months

2.10%

This term deposit was a 6-month investment at 2.65% and was rolled at maturity into a 6-month term deposit at 2.10%.

Monthly Investment Performance

Interest/growth/capital gains for the month totalled $263,216, which compares unfavourably with the budget for the period of $298,250, underperforming budget for the month by $35,034.

Council’s underperformance against budget for December was a result of a negative return by Councils TCorp Long Term Growth fund, which returned -0.29% (or -3.48% annualised) for the month as domestic equities parred back some of their recent gains.

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 3.00% or above. 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* (1.50%), Council’s investment portfolio returned 2.16% (annualised) for December. Cash and At-Call accounts returned 1.48% (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 2.83%, outperforming the AusBond Bank Bill index by 1.33%.

* 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 ⇩.	Request to correct Annual Grant Recipient Details - Rotaract Club of Wagga Wagga
2 ⇩.	Grant application details - Rotaract Park Upgrade
3 ⇩.	Section 356 Financial Assistance request - Wagga Wagga Water Polo

Report submitted to the Ordinary Meeting of Council on Monday 20 January 2020

RP-8

RP-8 Budget Variation: Enliven Public Art Plan 2017-21

Author: Tim Kurylowicz

Director: Janice Summerhayes

Summary:

This report details proposed variations to the Schedule of Works in the Enliven Public Art Plan 2017-21 to ensure the plan responds to needs identified since the plan was adopted. The overall budget value of the Public Art Plan’s Schedule of Works is not affected by this variation.

Recommendation

That Council:

a update the Public Art Collection register as detailed in the report

b approve the budget variation/s as detailed in the Financial Implications section of the report

Report

The Enliven Public Art Plan 2017-21 prescribes the budgets and timeframes for 17 separate commissions over the duration of the plan. These are outlined in the Schedule of Works on page 19 of the adopted plan.

At the 23 September 2019 meeting, the Public Art Advisory Panel (PAAP) endorsed the following variations to the Schedule of Works to meet emerging needs and ensure projects are adequately funded to deliver on the community’s expectations.

Background

To date, Council has commissioned or commenced a commissioning process for 12 of the 17 works outlined in the Schedule of Works. These are outlined in the table below. The Figures in bold and underlined indicate allocations from the Schedule of Works that are not yet commissioned.

	2017/18	2018/19	2019/20	2020/21
Living Spaces ($35,000 per year site-specific sculpture or installation)	Multi-Purpose Stadium - Will Maguire	Wilga Park – John Wood	$35,000	$35,000
Living Communities ($10,000 per year artwork or performance connected to a major event)	Scott Howie/Dagmara Gieysztor – Date Night	David ‘Meggs’ Hooke Mural ‘Murrumbidgee Flow’ - Lost Lanes	Lost Lanes 2020 (Commissioning process commenced)	ArtState Wagga Wagga (Commissioning process commenced)
NightLights Projection ($20,200 per year Projection Lab and commission by significant Australian digital artist)	Lucy Benson ‘Cloudsilk Wollundry Brocade’	Cindi Drennan ‘A Feathered Adventure in Light’	Kellie O’Dempsey ‘Tracing Time’	$20,200
BrightLights Projection ($10,100 per year Youth-based projection workshop and commission)	Beck Storer – ‘Re:App’	Kellie O’Dempsey – ‘We Are Now’	Tonya Meyrick - ‘Rural Type Exchange’	$10,100
River Life (artwork in Riverside celebrating Wiradjuri culture and heritage				$52,136

Considerations

Two considerations have been noted by staff and the PAAP that inform this proposed variation to the adopted Schedule of Works.

1. The lifespan of Council’s Projection equipment

In 2013, Council installed four Christie DHD800 Projectors into custom made poles to project a 50 x 8m projection onto the Civic Centre facing the Wollundry Lagoon. For seven years, a curated series of art projections have been projected onto the Civic Centre after dark.

The annual BrightLights and NightLights commissions have seen celebrated Australian digital artists create site-specific projected artworks on one of Australia’s largest permanent outdoor projection surfaces. Masterclasses associated with these commissions have provided training and opportunities to hundreds of residents, some of whom have gone on to receive paid work in animation and the digital arts.

After seven years of nightly operation, the projectors have begun to require more frequent servicing and repairs.

Staff have sought advice from a variety of vendors and audio visual technicians on what a reasonable lifespan might be for Council’s four projectors, and the general consensus is that they are nearing or at the end of their useful lives.

Replacing the projectors is not recommended or feasible considering Council’s current budgetary constraints. The cost of replacing the projectors is significant, with options ranging up to $25,000 per unit (estimate includes projector body and specialist lens) bringing the total estimated replacement cost of these projectors to approximately $100,000.

While Council’s projection program has been ground breaking and popular, there are now more nimble and effective ways to deliver digital art programming. For example, interactive projections were incorporated into the program of Lost Lanes 2019 and temporarily projected onto buildings in the vicinity of Cadell Place for the duration of that event. In the future digital projection artworks will be considered as part of festival and events programming across the City.

Staff have estimated the cost of removing the projectors and reinstating the lagoon lighting to be $16,601.50.

It is the recommendation of the Public Art Advisory Panel that Council decommission the projectors in early 2021 after the conclusion of the projection schedule at the end of 2020. The cost of removal and disposal of the projectors and reinstatement of lighting at the Lagoon foreshore would be covered by funds available in the public art reserve.

The digital artworks commissioned for Council since 2013 remain the property of Council and should be retained for future program use, which may include exhibitions, projections at events, or displays through Council’s online channels.

2. The current budget allocated to the Riverside ‘River Life’ commission is not adequate to deliver the scale and vision for this project

The Enliven Public Art Plan 2017-21 allocated $52,083 to ‘River Life,’ which was envisioned as a “significant public art initiative” to be commissioned within the Riverside precinct, “highlighting our community’s Wiradjuri living culture and heritage.”

Given the need to incorporate community consultation, design, engineering, fabrication, transportation, installation and landscaping into the cost of this public art commission (and noting the additional engineering costs associated with making the work flood safe), the proposed budget of $52,083 will not deliver a work reflecting the scale and quality required to compliment the rejuvenated Riverside precinct.

For comparison, Jane Cavanough’s Stone Crows artwork, currently situated adjacent St Michael’s Oval, was delivered for a budget of $90,000. The other significant Wiradjuri public art project undertaken by Council was the Wiradjuri Weaving Welcome at Wagga Wagga Airport seven years ago in 2013. This work had a budget of $72,000 and incorporated a significant research and development phase supporting the recovery of traditional basket weaving practices by local Elders.

Stone Crows (Left) by Jane Cavanough (Photo Heidrun Lohr). Wagga Wagga Weaving Welcome (Right) by Aunty Joyce Hampton, Aunty Lorraine Tye, Aunty Sandy Warren and Jonathan Jones (Photo Heidrun Lohr).

In order to deliver a work of this scale and quality required for the Riverside precinct, and to incorporate appropriate levels of community consultation into the process, the Public Art Panel estimate that a budget of $132,000 would be ideal for this project. A project of this scale will require a longer delivery timeframe than that specified in the current Enliven Public Art Plan’s Schedule of Works.

Proposed modifications to the Schedule of Works

The Public Art Advisory Panel recommends Council make the following variations to the Enliven Public Art Plan 2017-21 Schedule of Works:

· Designate the budgets allocated to the NightLights projection commissions 2020/21 to be utilised for removal of the projectors and reinstatement of pedestrian lighting alongside Wollundry lagoon.

· Designate the 2019/20 and 2020/21 Living Spaces commission allocations and the 2020/21 BrightLights commission to be incorporated into the budget of the River Life commission, bringing the River Life commission’s budget to $132,236.

Financial Implications

This proposed variation to the Schedule of Works has no overall impact on the budget position of the Enliven Public Art Plan 2017-2021.

The proposed revised schedule of works is as follows, with changes marked in bold and underlined:

	2017/18	2018/19	2019/20	2020/21
Living Spaces ($35,000 per year site-specific sculpture or installation)	Multi-Purpose Stadium - Will Maguire	Wilga Park – John Wood	Budget moved to River Life	Budget moved to River Life
Living Communities ($10,000 per year artwork or performance connected to a major event)	Scott Howie/Dagmara Gieysztor – Date Night	David ‘Meggs’ Hooke Mural ‘Murrumbidgee Flow’ - Lost Lanes	Lost Lanes 2020 (Commissioning process commenced)	ArtState Wagga Wagga 2020 – (Commissioning Process Commenced)
NightLights Projection ($20,200 per year Projection Lab and commission by significant Australian digital artist)	Lucy Benson ‘Cloudsilk Wollundry Brocade’	Cindi Drennan ‘A Feathered Adventure in Light’	Kellie O’Dempsey ‘Tracing Time’	$20,200 for Removal of Projectors and reinstatement of lagoon lighting
BrightLights Projection ($10,100 per year Youth-based projection workshop and commission)	Beck Storer – ‘Re:App’	Kellie O’Dempsey – ‘We Are Now’	Tonya Meyrick - ‘Rural Type Exchange’	Budget moved to River Life
River Life (artwork in Riverside celebrating Wiradjuri culture and heritage				$132,236

The projectors, lenses and software licenses have residual value and can be disposed as per the Procurement and Disposal Policy, with recovered funds returned to the Public Art Reserve.

If adopted, the adjusted budget for ‘River Life’ will be incorporated into the Wagga Wagga City Council Cultural Plan 2020-30 at recommendation 2.02 (‘Commission a significant public artwork within the Riverside precinct that celebrates Wiradjuri heritage and culture’) for adoption by Council in March 2020.

Indicative Quantity Surveying (below) for the Projector removal and reinstatement of lagoon lighting shows that the $20,200 proposed budget is a reasonable allocation for the required works. Any surplus funds would be returned to the Public Art Reserve.

Policy and Legislation

POL109 Public Art Policy

POL110 Procurement and Disposal Policy

Link to Strategic Plan

Community Leadership and Collaboration

Objective: We are informed and involved in decision making

Outcome: Everyone in our community feels they have been heard and understood

Risk Management Issues for Council

· Risks addressed by this proposed variation include:

· Reputational – due to failure of projectors

· Financial – increasing costs of repair and maintenance to projectors and incorporates an allocation for removal and remediation of the site.

Internal / External Consultation

The members of the Public Art Advisory Panel have discussed budget variation options over multiple PAAP meetings, and resolved to support the recommendations contained in this report.

Technical expertise has been sought by Audio visual experts at MosaicAV, RIC Electrics, staff from the Wagga Wagga Civic Theatre and Illuminart.

Council’s Project Management Office has provided cost estimates for the removal of projectors.

Four separate consultation meetings with Wiradjuri and First Nations Elders and community have been held to date regarding the proposed River Life commission, including two meetings with Mawang Gaway, and two consultation meetings with senior Elders.

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

Report submitted to the Ordinary Meeting of Council on Monday 20 January 2020

RP-9

RP-9 Events Strategy and Action Plan 2020-2024

Author: Fiona Hamilton

Director: Janice Summerhayes

Summary:

The draft Events Strategy and Action Plan 2020 – 2024 provides a five-year framework to guide Council in the planning, development, attraction and decision-making for events in the Wagga Wagga Local Government Area. In order to fully realise this strategy additional funding is required, as detailed in the financial section of this report, noting these funding requests are conservative and reflective of Council’s current budget constraints.

The draft Events Strategy and Action Plan 2020 – 2024, and this report, also addresses the Notice of Motion raised at the 16 December 2019 Council meeting requesting consideration of support for Flagship events.

This report seeks Council to endorse the draft Strategy to be placed on public exhibition for further engagement with event organisers, community groups, local business and the general public following January’s Council meeting in 2020.

Recommendation

That Council:

a approve the request to fund the Annual Grants – Events and Event Attraction items detailed in the financial section of this report

b endorse the draft Events Strategy and Action Plan 2020-2024 to be placed on public exhibition for a period of 28 days from 22 January 2020 and inviting public submissions until 3 March 2020

i receive a further report following the public exhibition and submission period addressing any submissions made and proposing adoption of the Strategy unless there are any recommended amendments deemed to be substantial and requiring a further public exhibition period

ii note that funding of the Destination Event and Sports Attraction items detailed in the financial section of this report are subject to Council’s Long Term Financial Planning and budget approval processes

Report

The draft Events Strategy and Action Plan 2020 – 2024 (the draft Strategy) provides a five-year vision and framework to guide Council in the development, attraction and decision-making for events in the Wagga Wagga Local Government Area.

The draft Strategy has been informed through Councillor one on one engagement sessions undertaken in September and October 2019 as well as desktop research, evaluation meetings held with event organisers in addition to feedback from internal stakeholders. The strategy seeks to provide Council with clear direction for its planning, decision making and support for events in Wagga Wagga.

As a result of the feedback received to date, the focus of the draft Strategy is on balancing the overall impact of the events portfolio against three key outcomes areas being:

· Lifestyle and Legacy – bringing communities together, creating a sense of vibrancy and building long lasting legacy for the city

· Reputation – raising our city’s profile both within and outside of the region as a place to visit, live and work

· Economic Benefit – driving visitation and stimulating economic activity

It is recognised that individual events will have different outcomes and may impact strongly in one or two of the outcome areas only and it is the combination of events that will contribute to the balanced portfolio of outcomes. The objective is to strike a balance between events that result in increased economic activity, reputational awareness and events that connect the community.

In order to achieve the three key outcome areas, the draft strategy has responded to both the opportunities and the challenges identified through the consultation and desktop research process. A summary of these is presented below with associated recommendations, noting some of these recommendations are currently unfunded. In the context of a constrained financial environment, staff have taken a conservative approach to funding these recommendations which is reflected in the financial section of this report.

A Notice of Motion (NOM) was received at the 16 December 2019 Ordinary Council meeting where Council resolved ‘that the current event strategy review considers the establishment of flagship events (such as Gears and Beers) which would fall outside of the annual grants process to be presented to Council in January 2020’. In response to this NOM a Flagship funding category has been considered as part of the draft Strategy. The Flagship funding category would allow events that have already received the maximum allowable sponsorship within the current funding programs to be considered for future support. This has been addressed in the recommendations below and in the revised draft Strategy attached.

Summary of recommendations

Opportunity/Challenge	Recommendation	Resourcing
Establish a Destination Event that showcases attributes, appeals to new visitor markets and delivering long term benefits to the city.	Council oversee the establishment of a destination event that is organically grown and relevant to the city, building on existing sporting and nature-based assets.	New GPR - $100K annually. Identified in Council’s business planning and Long-Term Financial Planning processes.
Strengthening investment through Event Attraction.	Attract an additional 10 regional sporting carnival events per annum through an increased Sports Attraction budget. Create a new budget to attract external events that fall outside and separate to the sports attraction budget. This funding is to be used to attract external events that align to Wagga Wagga’s positioning, attract visitation and are a catalyst for new experiences. This fund is for events that are managed by external promoters, may be part of a circuit and not exclusive to the city. Assumes 1-2 events per annum. Review Council’s process to be responsive in securing events that meet the Event Attraction criteria.	Sports Attraction Budget - New GPR - An additional $20K over 4 years up to $100K. Creation of a new Event Attraction Budget (non-sport) Year 1 2020/21 - $15K (to be funded through the Event Sponsorship carryover) Year 2 2021/22 - $30K ongoing (New GPR as part of Council’s business and Long-Term Financial Planning processes)
Increase capacity to support a broader range of Community Events.	Review the Annual Grants – Events stream to ensure additional support can be provided to a broader range of community groups and organisations delivering events. This should include the opportunity to provide support to unique/bespoke events that support creativity, innovation and active/healthy living. Increase the funding threshold available through the Annual Grants – Events category from $3K to $7.5K to meet the increased costs of running community events. Ensure the funding criteria is flexible to allow funding to be allocated to any event expense including road closures and event insurance. Include an additional 3-year support option within the Annual Grants – Events stream to ensure that events that demonstrate well defined objectives, growth and broad community appeal can be funded beyond the initial 3-year investment.	Year 1 (2020/21) - Increase the overall Event Promotions Grants budget by $25K (to be funded through the Event Sponsorship carryover) to a total of $45K. Year 2 (2021/22) $30K ongoing (New GPR as part of Council’s business and Long-Term Financial Planning processes) to a total of $50K.
Council support for Flagship Events.	Establish a Flagship Event category to fund events up to $20K per annum where the event has already received the maximum allowable funding through the Major Events, Festivals and Films Sponsorship Program. This category would provide a 3-year support option where the event can present a comprehensive strategy for future growth that includes the continued development of the event and its tourism potential to drive overnight visitation to the event. The support would be evaluated annually through a sponsorship acquittal with an option for additional multi-year support options. Fundraising/charity events are eligible where the funds raised are donated within the Local Government Area. This category also does not restrict based on profit. For further information, refer to the Revised Sponsorship table below.	Existing GPR – Fund through the existing Events Sponsorship budget up to a maximum pool of $40,000 per annum.
Out of round funding requests for events that present as a new opportunity and have not met the funding rounds of the Major Events, Films and Sponsorship funding window.	Provide one off support for new or existing events that miss the applicable funding rounds of the Major Events, Films and Festivals Sponsorship Program. Noting that this is a one-off grant for the lifetime of the event with a funding range of $3,000 to $15,000. Any subsequent funding requests would need to line up with future funding application rounds.	Existing GPR –Events Sponsorship budget.
Event organiser capacity	Build capacity through professional development workshops that encourage the development of value-added event experiences.	Staff time.
Accommodation capacity	Continue to identify and develop event accommodation opportunities for major events.	Staff time.
Event sustainability and accessibility	Establish guidelines and targets for improving the sustainable management of events.	Staff time.
Event infrastructure	Undertake an audit of public event infrastructure and precincts to identify areas for infrastructure investment.	Future GPR pending recommendations.
Event booking processes	Implement an online booking system that enables easy bookings for Council’s halls, facilities and public event spaces	Existing GPR.
Increased event staffing to meet the growing population needs and associated expectation of increased events for the city.	The gap to be addressed through workforce planning.	Unfunded.

The Events Portfolio

Delivery of the draft Strategy will be guided by the following events portfolio, that provides a classification system based on event type to guide funding appraisal and decision making. Each category within the portfolio has been assigned funding thresholds based on the scale and reach of the event. The categories within the event portfolio ensure that events are considered across a broad range of areas from sport, business, lifestyle, entertainment and culture.

Type of Event

Target per annum

Scale and reach

Funding mechanism and proposed thresholds

Destination Event

This recurring event attracts significant overnight visitation from across Australia and delivers long term benefits to the destination.

Visitors: 5,000+

Overnight stay: 2 nights

Media reach: regional to international

Specific budget request to Council.

Major Tourism Events

Events that attract significant attendee numbers and/or overnight visitation and/or enhance the profile of the city.

Eg. Wagga Gold Cup, Wagga Mardi Gras, Stone the Crows

10-15

Visitors: 1,000 to 3,000+

Overnight stay: 2 nights

Media reach: regional to national

Major Events, Festivals and Films Sponsorship $3,000 to $20,000 (see next table for a further breakdown of funding categories).

Event Attraction Fund No threshold, event dependent.

Niche Business Events

Business events which include meetings, conventions, seminars and exhibitions aligned to key industry growth sectors, generating economic benefit and destination awareness.

Eg. Australian Agronomy Conference

3-5

Overnight stay: 2-3 nights

Media reach: regional to national

Event Attraction Fund

No threshold defined, event dependent.

Sports Tourism Carnivals

Participants travel to destination to participate in a sporting event generating economic benefit and destination awareness.

Eg. Hockey Masters

Visitors: 400+

Overnight stay: 2 nights

Timing: low/mid-week

Media reach: local to regional

Sports Event Attraction Fund – $100K pool by 2023/24

No threshold defined.

Marquee Sporting Events

Elite sporting fixtures with social and legacy benefit, creating destination awareness.

Eg. NRL, AFLW

1-2

Attendees: 5,000+ (pending competition)

Overnight stay: 2 nights

Timing: low/mid-week

Media reach: local to national

Specific budget requests to Council. Direct negotiation with promoter.

Community Events

Foster community pride and social benefits.

Eg. Inter Church Christmas Carols, Pink Stumps

Unlimited

Attendance: 200 to 8,000

Media reach: local

Annual Grants funding up to $7,500 per annum.

Council run events

Events that meet Council’s Community Strategic Plan priorities.

Eg. Fusion, Spring Jam, Lost Lanes etc…

Variable

Variable pending event purpose

Specific Council allocated GPR budgets.

Revised sponsorship funding categories for event organisers

The following table outlines the changes to sponsorship funding categories available to external event organisers.

Fund

Description

Annual Grants – Events for Community Events

Requested total available pool of $50,000 by 2021/22.

Provides funding to community events, up to $7,500 for a maximum of 3 years with option for 3-year support package for events that demonstrate well defined objectives, growth and broad appeal.

Funding can be allocated to any event expense with the exception of salaries, major capital items, Council bonds.

Major Events, Festivals and Films Sponsorship for Major Tourism Events.

Total available pool is $100,000.

Incubator Category – a new major tourism event in its first or second year of development – funding range $3,000 to $10,000.

Assessed according to the KPI’s on page 30 of the draft Strategy.

Where and how the cash support is allocated will be specified in the sponsorship agreement.

Developing Event Category - supports major tourism events that have been running for more than 2 consecutive years and meet the funding criteria.

Funding range: Up to $20,000.

Assessed according to the KPI’s on page 30 of the draft Strategy.

Where and how the cash support is allocated will be specified in the sponsorship agreement.

Flagship Category – supports events that have already received the maximum allowable funding through the Major Events, Festivals and Films Sponsorship program and can present a comprehensive strategy for future growth and development of its tourism potential.

The funding range is $10,000 to $20,000 and this sponsorship is triennial in nature to support the continued growth of the event into new visitor markets. Any support would be evaluated annually through a sponsorship acquittal with an option for additional multi-year support.

Assumes a maximum of $40,000 is supported at any one time through the current Major Events, Festivals and Films budget pool, for example:

- Year 1 (2020/21) one event is eligible to be funded through the Flagship fund at $20,000, the remaining available pool is $80,000 to support events in the Incubator and Developing categories.

- Year 2 (2021/22) two events are eligible and are sponsored at a total of $40,000 meaning the remaining pool is $60,000.

- Future year, multiple events maybe eligible, however the available allocation for Flagship eligible events is to be capped at $40,000 as defined in the draft strategy so the remaining available pool for Incubator and Developing events is never less than $60,000.

Where and how the cash support is allocated will be specified in the sponsorship agreement.

Out of Round Category – supports new or unplanned opportunities that have missed the Major Events, Festivals and Films funding windows.

Restriction: maximum one per event over the event’s lifecycle to a maximum of $15,000 pending funds available in the Major Events, Festivals and Films budget.

Applicants must complete an application form responding to questions aligning to funding criteria.

Assessed according to the KPI’s on page 30 of the draft Strategy.

The draft Strategy is recommended for Council approval to be placed on public exhibition for further engagement with event organisers, community groups, local business and the general public following January’s Council meeting in 2020. This will include one on one and group interviews as well as an online community survey with the view to have the Strategy back to Council at the second meeting in May 2020 along with revision to the Major Events, Festivals and Films Policy and Guidelines. Commencement of the new strategy will align with the new financial year 1 July 2020.

Financial Implications

Budgeting for the recommended actions will be incorporated into Council’s Integrated Planning & Reporting processes, these are detailed in the draft Strategy’s Action Plan.

A summary of the requested budgets and funding sources are listed in the table below. Given the current budget constraints it is recommended that the Events Sponsorship carryover from 2018/19 of $52,500 is used in 2020/21 to fund an incremental increase in budget items 1. Annual Grants and 2. Event Attraction requests as detailed in the table below. In future years funding of these items would be sourced from and subject to Council’s business and Long-Term Financial Planning processes.

Budget Item	Funds Requested	Year 1 2020/21	Year 2+ 2021/22 – 2023/24
1. Annual Grants	Year 1 $25k funded from carryover Year 2 onwards $30,000	Year 1 (2020/21) – existing budget allocation $20K Increase the overall Event Promotions annual grants budget by $25K (to be funded through the Event Sponsorship carryover) to a total of $45K in Year 1	Year 2 (2021/22) $30K ongoing (New GPR as part of Council’s business and Long-Term Financial Planning processes) to a total of $50K.
2. Event Attraction	Year 1 $15k funded from carryover Year 2 onwards $30,000	Year 1 2020/21 - $15K (to be funded through the Event Sponsorship carryover)	Year 2 2021/22 - $30K ongoing (New GPR as part of Council’s business and Long-Term Financial Planning processes)
3. Destination Event	$100,000	$100K New GPR (included in 2020/21 business planning request) Proposed to be funded from the Economic Development Reserve*	$100K New GPR
4. Sports Attraction	Grow to $100,000	$20K New GPR (included in 2020/21 business planning request) Proposed to be funded from the Economic Development Reserve*	$20K New GPR, over 4 years, capped at $100K

The 2019/20 Events Sponsorship budget (15308) is $100,000 for Tier One and Tier Two Major Events, Festivals and Films Sponsorship allocations. In addition to a carryover of $52,500 from 2018/19 FY, the total for this budget line was $152,500 for 2019/20. To date $72,545 has expended and/or committed from previous Major Event, Festivals and Films requests, leaving a budget available of $79,955.

If Council approves the recommendation to fund items 1. Annual Grants and 2. Event Attraction for 2020/21 as per the table above, totalling $40,000, this will leave $39,955 remaining in the 2019/20 Events Sponsorship budget for Round Two of the Major Events, Festivals and Films Sponsorship. Round Two of this remaining $39,955 amount will be advertised in February 2020 to fund events to be staged in the second half of 2020.

Staff will identify and seek external funding opportunities, where relevant, over the course of the strategy.

*Economic Development Reserve Balance:

$580,000 – current adopted reserve balance

($100,000) – funding source for item 3. Destination Event for 2020/21 listed in above table

($20,000) - funding source for item 4. Sports Attraction for 2020/21 listed in above table

$460,000 – proposed revised Economic Development Reserve balance

Policy and Legislation

Community Strategic Plan 2040: Wagga View

Recreation, Open Spaces & Community Plan 2040 (2017)

City of Wagga Wagga Disability Inclusion Action Plan (DIAP)

City of Wagga Wagga Reconciliation Action Plan (2019)

POL087 - Major Events, Festivals and Films Policy

Link to Strategic Plan

Community Place and Identity

Objective: We have opportunities to connect with others

Outcome: We activate our community spaces to promote connectedness

Risk Management Issues for Council

Some elements within this plan are dependent upon sourcing long-term financial funding and will not proceed if funding is not secured.

Risk management will be managed against each action when implemented.

Internal / External Consultation

The second stage of consultation will commence once the draft Strategy is endorsed and can be placed on public exhibition. This will include one on one and group interviews as well as an online community survey.

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

Draft EventsStrategy 2020 - Provided under separate cover

Assumed Lighting Classification

Option 1

Option 2a

Option 2b

Option 3

983

531

1,403

1,492

1,519

1,787

P4/P5

4,018

3,920

3,893

3,625

Total

6,940

Estimated Upfront Cost

$2,587,432

$2,596,893

$2,598,898

$2,617,836

Estimated Annual Savings

$514,542

$513,021

$512,687

$477,619

Payback Period

5.03 years

5.06 years

5.07 years

5.48 years

Date

Matter

31 January 2011

Notice of Motion and a draft Local Preference Policy considered by Council – requested a further report

18 February 2011

Legal advice received in relation to the draft Policy

28 March 2011

Council resolved not to proceed

15 February 2016

Workshop with Councillors to discuss a Local Preference Policy and building resilience in local suppliers. No consensus on proceeding with a Policy

STANDARD CONDITIONS

Agreement duration

Up to five years unless another duration specified.

Fees

Rent and other occupation fees as per the Council’s Fees and Charges as at the date of commencement. (Currently the Council’s minimum community rent is $655 per annum including GST).

Fee increases

Rent and other occupation fees adjusted annually on the anniversary of commencement as per the Council’s Fees and Charges, or according to CPI if the Fees and Charges policy does not apply.

Public Liability Insurance

No less than $20 million with the Council of the City of Wagga Wagga listed as an interested party.

Occupation Costs

Tenant to meet costs associated with occupation of the premises including but not limited to water, gas, electricity, sewer and waste disposal.

Maintenance Responsibilities

Tenant responsible for routine upkeep, servicing of equipment and day-to-day maintenance. The Council is responsible for works of a structural nature only (where Council buildings are occupied).

Preparation Fees

As per the Council’s adopted Revenue and Pricing Policy current as at the date of commencement of the renewed agreement. The current licence preparation fee is $210 including GST. Where leases are in place, legal fees incurred for agreement preparation are reimbursed by the tenant.

Applicant	TJ Hinchcliffe & Associates Pty Ltd
Owner	Elaine Marie Furner & John Charles Furner
Development Cost	$5000
Development Description	Two Lot Subdivision – the existing dwelling will be contained on one block to the front (west) of the site and a new block is proposed as a battle axe lot to the rear (east) which will be accessed via a 10 metre wide driveway along the northern boundary of the subject site.

1.	DA19/0412 - s4.15 Assessment Report - Provided under separate cover
2 .	DA19/0412 - Plan of Subdivision - Provided under separate cover
3 .	DA19/0412 - Statement of Environmental Effects - Provided under separate cover
4 .	DA19/0412 - Redacted Submissions - Provided under separate cover
5 .	DA19/0412 - Odour Impact Assessment - Provided under separate cover
6 .	DA19/0412 - Department of Planning Correspondence - Provided under separate cover
7 .	DA19/0412 - Regional Growth NSW Development Corporation correspondence - Provided under separate cover
8 .	DA19/0412 - Councillor correspondence. - Provided under separate cover

	Option 3 Council funded model	Option 3 Essential Energy funded model
Cost of Upgrade	$3,964,767	$3,964,767
Luminaires Discount	($633,437)	($0)
Bulk Lamp Discount	($500,441)	($0)
Residual Value of Current Lights	$102,814	$102,814
Total Upfront Cost Payable	$2,933,703	$102,814
Estimated Energy Savings Certificates	($315,867)	($315,867)
Net Capital Cost to Council	$2,617,836	($213,053)

	Option 3 Council funded model	Option 3 Essential Energy funded model
Current Annual Capital/Maintenance Cost	$483,616	$483,616
New Annual Capital/Maintenance Cost	$261,243	$595,239
Annual Capital/Maintenance Saving	$222,373	($111,623)
Estimated Annual Energy Savings	$255,246	$255,246
Total Annual Savings	$477,619	$143,623

CROWN LAND
Note: All agreements over Crown Land require review by Council’s Native Title Manager in accordance with section 8.3 of the Crown Land Management Act 2016 (taking effect from 1 July 2018). Under the aforementioned legislation, Council manages Crown Land as community land under the Local Government Act 1993 and is required to give public notice of a proposal to lease or licence of land. If objecting submissions are received in relation to any proposed agreement, a further report will be submitted to Council for consideration.
Organisation	Expiry Date	Property	Use
Wagga Wagga Women’s Shed Inc	31 Jan 2020	Cnr Beckwith and Kincaid Streets, Wagga Wagga	Land and building for community purposes
South Wagga Tennis Club Inc.	28 Feb 2020	Tennyson Park, 40 Oates Avenue, Wagga Wagga	Land and building for community purposes
Tarcutta Mens Shed Inc	30 Jun 2020	Former RFS Shed, 8 Bent Street, Tarcutta	Land and building for community purposes.

1 ⇩.	Submission from the Wagga Wagga Busines Chambers requesting funding
2 ⇩.	Draft MOU - Wagga Wagga City Council and Wagga Wagga Business Chamber
3 ⇩.	Draft MOU - Schedule A - Wagga Wagga City Council and Wagga Wagga Business Chamber

1 ⇩.	POL118 - Roadside Memorials Policy
2 ⇩.	Submission - Public Exhibition - Roadside Memorial Policy

1 ⇩.	Financial Modelling - Option 3
2 ⇩.	Financial Modelling - Council Funding Options

1 ⇩.	Comparison of Local Preferences
2 ⇩.	Extract from OLG Tendering Guidelines
3 ⇩.	ACCC Guidelines on Misuse of Market Power

COMMUNITY LAND
Note: Under Section 47a of the Local Government Act 1993 Council is required to give public notice of a proposal to lease or licence of land classified as community land. If objecting submissions are received in relation to any proposed agreement, a further report will be submitted to Council for consideration.
Organisation	Expiry Date	Property	Use
Janine King	31 Oct 2020	3 Dalman Parkway, Glenfield	Land only for carpark
Wagga Amateur Radio Club Inc.	30 Sep 2020. Renew for a period of three years to align with Wagga Art Society licence expiring August 2023.	9 Small Street, Wagga Wagga	Land and building for community purposes
Wagga Wagga Bridge Club Inc.	30 Sep 2020	Belling Park, 7 Bolton Street, Wagga Wagga	Land and building for community purposes
Wagga Wagga Community Media Inc. (2AAAFM) LAND	31 Jul 2020	Public Reserve, Wandoo Place, Willans Hill (South)	Land only for community purposes

OPERATIONAL LAND
Organisation	Expiry Date	Property	Use
Australian Red Cross Society	31 May 2020	16 Wiradjuri Cres Wagga Wagga	Land for community purposes
Murrumbidgee Local Health District	31 May 2020	Part 204 Tarcutta Street, Wagga Wagga	Building for community purposes

Lease Particulars	Rest Stop Site	RFS Shed Site
Commencement Date	1 October 2019	1 February 2019
Lease Duration	Five years	Five years
Annual Rent excluding GST	$1,500	$720
Rent Increases	3% annually	3% annually
Lease Preparation Fee	$1,595	$792
Statutory Charges & Outgoings	Payable by Council	Payable by Council

1 ⇩.	Audit Risk and Improvement Committee 21 November 2019
2 ⇩.	Audit, Risk and Improvement Committee Annual Report 2018-2019