Agenda and
Business Paper

 

Ordinary Meeting of Council

 

 

 

To be held on
Monday 13 March 2023

at 6.00pm

 

 

 

Civic Centre cnr Baylis and Morrow Streets,
Wagga Wagga NSW 2650 (PO Box 20)
P 1300 292 442
P council@wagga.nsw.gov.au

wagga.nsw.gov.au

 

The proceedings of all Council meetings in open session, including all debate and addresses by the public, are recorded (audio visual) and livestreamed on Council’s website including for the purpose of facilitating community access to meetings and accuracy of the Minutes.

 

In addition to webcasting council meetings, audio recordings of confidential sessions of Ordinary Meetings of Council are also recorded, but do not form part of the webcast.

 

 

 

 

STATEMENT OF ETHICAL OBLIGATIONS

Councillors are reminded of their Oath or Affirmation of Office made under Section 233A of the Local Government Act 1993 and their obligation under Council’s Code of Conduct to disclose and appropriately manage Conflicts of Interest.

 

QUORUM

The quorum for a meeting of the Council is a majority of the Councillors of the Council who hold office for the time being who are eligible to vote at the meeting.

 

Ordinary Meeting of Council AGENDA AND BUSINESS PAPER

Monday 13 March 2023

ORDER OF BUSINESS:

CLAUSE      PRECIS                                                                                                      PAGE

ACKNOWLEDGEMENT OF COUNTRY                                                                                   2

REFLECTION                                                                                                                         2

APOLOGIES                                                                                                                          2

Confirmation of Minutes

CM-1           ORDINARY COUNCIL MEETING - 27 FEBRUARY 2023                                      2

DECLARATIONS OF INTEREST                                                                                            2

Councillor Report

CR-1            SWITCH 2022 DELEGATE REPORT                                                                   3

CR-2            NÖRDLINGEN 2022 DELEGATE REPORT                                                          6

Reports from Staff

RP-1            DA22/0568 - Construction of shed for use as seven depots with associated parking and landscaping at 114-116 Marah St NORTH WAGGA WAGGA  NSW  2650; Lot 345 DP1124792.                                                        9

RP-2            RESPONSE TO NOTICE OF MOTION - PROPOSED ZERO-BASED BUDGET APPROACH                                                                                                                           15

RP-3            FINANCIAL PERFORMANCE REPORT AS AT 28 FEBRUARY 2023                    21

RP-4            Review of Finance Policies                                                                        55

RP-5            2023 NATIONAL GENERAL ASSEMBLY OF LOCAL GOVERNMENT ANNUAL CONFERENCE                                                                                                    94

RP-6            2023 FLOODPLAIN MANAGEMENT NATIONAL CONFERENCE                         99

RP-7            REVISED 2023 COUNCIL MEETING SCHEDULE                                                101

RP-8            QUESTIONS WITH NOTICE                                                                                103    

Confidential Reports

CONF-1       RFT2023-17 PROVISION OF TRADE SERVICES                                                 105

CONF-2       APPOINT CO-OPTED MEMBERS TO FLOODPLAIN RISK MANAGEMENT ADVISORY COMMITTEE                                                                                                       106

CONF-3       POSSIBLE BUSINESS OPPORTUNITY ARISING FROM THE SISTER CITY VISIT TO NORDLINGEN                                                                                                    107

 

 

 

ACKNOWLEDGEMENT OF COUNTRY

Wagga Wagga City Council acknowledges the traditional custodians of the land, the Wiradjuri people, and pays respect to Elders past, present and future and extends our respect to all First Nations Peoples in Wagga Wagga.

We recognise and respect their cultural heritage, beliefs and continuing connection with the land and rivers. We also recognise the resilience, strength and pride of the Wiradjuri and First Nations communities

 

 

REFLECTION

Councillors, let us in silence reflect upon our responsibilities to the community which we represent, and to all future generations and faithfully, and impartially, carry out the functions, powers, authorities and discretions vested in us, to the best of our skill and judgement.

 

 

APOLOGIES

 

 

Confirmation of Minutes

CM-1              ORDINARY COUNCIL MEETING - 27 FEBRUARY 2023       

Recommendation That the Minutes of the proceedings of the Ordinary Council Meeting held on 27 February 2023 be confirmed as a true and accurate record.

 

 

 

1⇩.

Minutes - OC - 27 February 2023

108

 

 

DECLARATIONS OF INTEREST

Report submitted to the Ordinary Meeting of Council on Monday 13 March 2023

CR-1

 

Councillor Report

CR-1              SWITCH 2022 DELEGATE REPORT

Author:         The Mayor, Councillor Dallas Tout

 

 

Recommendation That Council receive and note the report.

 

As per the resolution from the Ordinary Meeting of Council on 7 November 2022, I attended the NSW Public Libraries Association (NSWPLA) SWITCH 2022 Conference and AGM in Albury from 8 to 11 November 2022.

 

As detailed in the report to Council the annual SWITCH conference is a forum in NSW for Councillors, Council Officers and Library staff to assemble for professional development. The conference provides an important opportunity for delegates to learn about contemporary practices and offers a platform for networking with colleagues and extending contacts and partnerships beyond the boundaries of the local South-West Zone of the Association.

 

Several Councillors and library staff from around the region attended the conference, particularly as it was held within the region. In the end the total number of registrations were 300 attendees. Staff from the Wagga Wagga library also attended.

 

As per the program provided at the time of approving a delegate to attend, there were a wide range of areas covered across the library space. These included updates on contemporary issues, policy and funding issues and emerging trends in the public library space. This is the feedback I continue to receive as a member of the executive of NSWPLA. The program is broads but manages to cover a variety of areas of interest to those involved in the space.

 

A post conference survey was undertaken online by delegates with the following feedback metrics from those who responded:

 

·        96% satisfied or very satisfied with ease of registration

·        94% satisfied or very satisfied with networking opportunities

·        92% satisfied or very satisfied with information obtained/presentations

·        87% are planning to implement new ideas, programs to their libraries following the conference

·        61% of delegates were from rural and regional NSW

·        35% delegates from Sydney Metro

·        4% delegates from interstate

·        100% of delegates spent some time at exhibitor stands

·        95% of delegates intend to attend SWITCH again

 

 

Cameron Morley gave a presentation on the success of the increase of public library funding that was obtained for the 2019-2022 quadrennial funding period following the successful campaign by NSWPLA, LGNSW and the State Library of NSW (State Library). A number of points of areas that funding has been used towards include:

 

·        Days of opening increased where possible

·        Increase in book votes

·        $18m has been spent on infrastructure including 60 building projects, 9 mobile libraries and 2 library system replacements

·        Numerous increases in expenditure on collections, furniture, IT, promotion and events

·        The State Library continues to work with public libraries in relation to providing advice, as requested, as to the best value for expenditure and trends going forward

 

On day 2 of the conference, the State Librarian was in attendance and facilitated a video from the Minister Ben Franklin regarding the continuation of funding. During the last four years NSWPLA and the State Library had been having continuing discussions as to what would happen with the quantum of funding received for the 2019-2022 quadrennial period as this was due to expire mid-2023.

 

The announcement was that the level of funding was to continue. This was a very exciting announcement as it gave surety to the funding and all Councils could continue to budget for the current budget figures. In addition to that, the total of funds in the future will be indexed to population growth. This outcome confirmed that the advocacy that NSWPLA in conjunction with the State Library had been undertaking since 2020 was indeed fruitful.

 

At the AGM on the Friday morning of the conference I completed my third two-year term as President. My time as President was very satisfying in working as part of a team to secure major increases in funding for public libraries and then to also obtain that increase in funding ongoing and indexed. I will continue on the board of the executive as one of the two Vice Presidents.

 

Thank you for the opportunity to attend the conference as the elected representative for the City of Wagga Wagga. FYI the 2023 conference switches back to Sydney and will be held at the Panthers Penrith complex.

 

The cost for attendance of one Councillor at the conference was $950 plus GST. The conference and accommodation costs were funded from the Councillors’ Conference and travelling budget which has $30,000 for the 2022/23 financial year.

POL 025 – Councillor Expenses and Facilities Policy

POL 113 – Councillor Induction and Professional Development Policy

 

Community leadership and collaboration

Objective: Wagga Wagga has strong community leadership and a shared vision for the future

Our leaders represent our community

 

N/A

N/A

 

 

Report submitted to the Ordinary Meeting of Council on Monday 13 March 2023

CR-2

 

CR-2              NÖRDLINGEN 2022 DELEGATE REPORT

Author:         The Mayor, Councillor Dallas Tout

 

Recommendation That Council receive and note the report.

 

In early September 2022 as Mayor, I led a Wagga Wagga delegation to our sister city of Nördlingen in Germany to attend the Stadtmauerfest 2022 represented the 55^th anniversary of the signing of the sister city arrangement with Nördlingen.

 

Every three years the former Free Imperial City of Nördlingen goes back to its roots in the Middle Ages for a long weekend. During the three day “Historic City Wall Festival”, historically dressed craftsman, musicians, jugglers, and artists are involved in the festival throughout the city.

 

The delegation that attended consisted of:

·        Dallas & Janine Tout (Mayor)

·        Peter Thompson (General Manager Wagga Wagga City Council)

·        Jessikah McCarthy (Miss Wagga Wagga 2022)

·        Rachael Bowering (Community Princess 2022)

·        Ali & Lindsay Tanner (Chair Miss Wagga Wagga Quest)

·        Sally Tanner & Luke Kerlin (Sally is a previous Sister City Committee member and Young Citizen of the Year)

·        Claire Lawlor (Miss Wagga Wagga Committee member)

 

Prior to the finalisation of the membership of the delegation, expressions of interest went to Councillors and previous members of the Sister City Committee.

 

Also in attendance at this festival were representatives from each of the other sister cities of Nördlingen, those being:

·        Markham, Canada

·        Olomouc, Czech Republic

·        Riom, France

·        Stollberg, Germany

 

As part of his welcome address at the reception to honour the sister cities Oberburgermeister David Wittner stated “We look forward to celebrating many anniversaries to come yet with our dear friends from Wagga Wagga and Olomouc. By signing the founding documents of the twinning of our cities, we all reaffirmed our will to encourage cultural, social, and economic exchanges, and we have done everything in our power to meet the defined objectives.”

 

The generosity and warmth of Oberburgermeister David Wittner, councillors and the community in general was quite overwhelming.

 

 

Separate to the ceremonies, church services and general festival events there were also additional items included for the delegations to attend and enjoy. This included a welcome dinner on the Friday evening in addition to a specific sister city reception on the Saturday morning. During the sister city reception gifts were interchanged between Nördlingen and Wagga Wagga.

 

In conjunction with a local business and Henschke primary school I also hand delivered letters written from our local primary school to primary schools in Nördlingen. I have received confirmation from senior city staff in Nördlingen that return letters from primary students in Nördlingen have been posted back to the local primary school in Wagga Wagga. A great example of the opportunities available in the cultural space in an active sister city relationship.

 

On the Friday morning prior to the commencement of the festival that afternoon the city organised a visit to a local company that operates internationally. Further detail is included in a confidential item in tonight’s agenda but suffice to say that economic opportunities for the city and region are a distinct possibility following on from that visit and further discussion tonight.

 

On the Monday afternoon after the conclusion of the festival myself and the General Manager travelled by train to Frankfurt to meet with Johanna Harvey from Austrade who is based at the Australian Consulate General offices. A general discussion was had as to concierge services that Austrade is able to offer and also what approach should be taken by Council or the State Government in pursuing potential international investment in the region.

 

The critical point was in relation to investors being assured as to the availability of a sufficient number of potential staff for any business they invest in. This is critical in addition to the other information in regard to liveability and other factors included in promotions done to date to entice investors. The visit was most fruitful and we now have a direct contact within the Frankfurt office.

 

On Monday evening we flew out to Heathrow for an early morning trip to Cambridge in the UK. Myself, The Geneal Manager and my wife drove to Cambridge in the early morning to spend until about lunchtime walking and observing the city and the feel of a fully integrated precinct that integrates the city, the University, and any number of medical and/or other facilities. The intent was to physically see how a space can work within a city where different precincts are indistinguishable from each other and work in the same space.

 

To view this and then apply that to what may be the future for any type of medical precinct, or more so the possibilities on and around the Charles Sturt University (CSU) campus. In my mind the vision of the northern precinct would be that if walking or moving around that space you would not be able to tell if you were in a specific area as all facilities would be indistinguishable from the other. Whether you are in a retail or community space that is either part of CSU or part of the non-CSU space. Taking a few hours to observe this firsthand was very useful.

 

The other added benefit was the Cambridge Park & Ride. This is a very large car park set adjacent to the freeway. There are very large car parks where vehicles are parked and then buses depart from there into the city on a very regular basis to feed commuters into a fully integrated transport system. This physically takes a large number of vehicles off the road and increased the vibrancy in the city. Variations of this could be considered in Wagga Wagga in the future. Whether that be in between South and North of the city, or in and around the SAP. Who knows, the concept is well worth investigating.

 

From lunch on the Tuesday on, myself and the General Manager then went on private leave at our own expense. The costs incurred for the trip were economy return airfares only for myself and the General Manager, two night’s accommodation, taxi fares in Frankfurt and train tickets from Nördlingen to Frankfurt.

 

As in the past this visit allowed the City of Wagga to continue to further the goodwill and understanding developed over 55 years in our sister city relationship. Over those years the visits have been mutual and are relevant to this day in building relationships both cultural and economic.

 

The visit to the local business with international clients was only facilitated due to the relationship the Lord Mayor David Wittner with that business and the relationship we have with Nördlingen flowing from five decades of a close sister city relationship. Details of which are in the confidential item tonight.

 

Thank you to the Council for the support in resolving that the trip and visit be undertaken.

 

The total travel costs for the Nordlingen 2022 Delegate visit were $11,909. The main costs were the international airfares, which due to the travel market at the time with the COVID-19 pandemic, were more expensive than originally anticipated.

 

The visit was funded from the Sister Cities budget allocation.

 

Job 17868: Sister Cities

N/A

Community leadership and collaboration

Objective: Wagga Wagga has strong community leadership and a shared vision for the future

Our leaders represent our community

N/A

N/A

 

Report submitted to the Ordinary Meeting of Council on Monday 13 March 2023

RP-1

 

Reports from Staff

RP-1               DA22/0568 - Construction of shed for use as seven depots with associated parking and landscaping at 114-116 Marah St NORTH WAGGA WAGGA  NSW  2650; Lot 345 DP1124792.

Author:                        Paul O’Brien   

General Manager:    Peter Thompson

         

 

Summary:

The Development Application seeks consent for the construction of a shed to be used as seven individual depots.   Depots are permitted with consent under the Wagga Wagga Local Environmental Plan 2010 in the RU5 Village zone.   The application was publicly advertised and notified to adjoining and nearby property owners for a period of 14 days.  A total of 28 submissions and one online petition of 203 signatures were received in objection to the development.   Section 1.10 of the Wagga Wagga Development Control Plan 2010 requires any application that is the subject of 10 or more objections to be referred to Council for determination.   A full assessment of the application has been completed in accordance with Section 4.15 of the Environmental Planning and Assessment Act 1979 and is provided as an attachment to this report.  The assessment has considered and addressed all relevant matters raised in the submissions.   Subject to the findings of the assessment, it has been recommended that the application be approved subject to conditions. The recommended conditions have been included in the attached assessment report.

 

 

Recommendation That Council approve DA22/0568 for Construction of shed for use as seven depots with associated parking and landscaping at 114-116 Marah Street, North Wagga Wagga subject to the conditions outlined in the Section 4.15 Assessment Report.

 

 

Applicant	Mr Robert Gordon Moore
Owner	Mr Robert Gordon Moore
Development Cost	$989,200.00
Development Description	Construction of shed for use as seven depots with associated parking and landscaping.

 

Key Issues

·     Permissibility of development and objectives of the RU5 zone.

·     Character of the village of North Wagga

·     Flooding and stormwater impacts

·     Streetscape impacts

·     Residential amenity

 

Assessment

·    The site is zoned RU5 Village under the provisions of the WWLEP 2010. Depots are permitted with consent in the RU5 zone.

·    The development complies with the controls of the WWLEP 2010 and the WWDCP 2010.

·    The site and surrounding area are subject to flooding and mapped as being within the flood planning area for North Wagga Wagga. The attached s4.15 assessment report considers the relevant flood considerations for the type of development which are satisfied.

·    Increased stormwater run-off from the development is to be piped to the opposite side of Marah Street where there is a wider table drain and greater capacity for the water to naturally disperse.

·    The site is within the village zone and the village contains a variety of land uses including industrial, educational, commercial and residential. The site is at the edge of the village zoned area with rural zoned land on the opposite side of Marah Street. The proposed depots are suitable within the existing site context.

·    There is a diverse streetscape within this part of North Wagga that includes farm buildings, depots, residences and vacant land. Accordingly, the proposal will not detract from a consistent pattern of development and is not considered to the streetscape. Landscaping within the front setback area will soften the development to the street.

·    New access, manoeuvring areas and parking have been provided to support the development in accordance with requirements. Marah Street provides a direct link to Hampden Avenue with easy access to the wider road network.

·    The impacts of the development upon residential amenity have been considered as part of the attached s4.15 report and deemed to be acceptable.

·    Twenty-eight submissions and an online petition were received in objection to the development. Generally, the submissions related to the scale of the development and its suitability within a village zone. The submissions have been addressed further in detail under section (d) of the attached s4.15 report.

·    Appropriate conditions of consent are included to manage and mitigate the impacts of development. Subject to compliance with the conditions there are no anticipated impacts that would warrant refusal of the development application.

 

Reasons for Approval

1.      The proposed development is consistent with the provisions of the Wagga Wagga Local Environmental Plan 2010.

2.      The proposed development is generally consistent with the objectives and controls of the Wagga Wagga Development Control Plan 2010.

3.      Impacts of the proposed development are acceptable and can be managed via the recommended conditions of consent.

4.      The site is considered suitable for the proposed development.

 

Site Location

 

The property is located on the western side of Marah Street approximately 65 metres to the west of the junction with Arthur Street and extends to 3109sq.m in size. The site is generally flat and vacant with minimal vegetation to the southern boundary. There is a laneway to the rear of the site.

 

Land on the other (northern) side of Marah Street is rural zoned land in use for grazing predominantly, there are a number of farm buildings of various sizes on the site opposite. The adjoining site to the west is vacant land with sheds at the rear and to the south on the opposite side of Marah Lane there are residential properties some of which are two storeys in height. The land adjoining to the east has development consent for a similar development to that proposed. The proposal is for four separate sheds to be used as 3 x depots and 1 x industrial premises. This development is under construction and not yet complete.

 

N/A

Wagga Wagga Local Environmental Plan 2010

Wagga Wagga Development Control Plan 2010

 

The Environment

Objective: Future growth and development of Wagga Wagga is planned for in a sustainable manner

Ensure sustainable urban development

 

Refusal of the application may result in an appeal process in the Land and Environment Court which will have to be defended by Council. The reasons for refusal will have to be justified and withstand scrutiny and cross examination in Court. 

 

Approval of the application is not considered to raise risk management issues for Council as the proposed development is generally consistent with LEP and DCP controls. Submissions raised in objection to the development have been addressed in the attached s4.15 assessment report.

Full details of the consultation that was carried out as part of the development application assessment is contained in the attached s4.15 Report.

 

Mail

Traditional Media

Community Engagement

Digital

Rates notices insert

Direct mail

Letterbox drop

Council news

Media release

Media opportunity

TV/radio advertising

One-on-one meeting(s)

Community meeting(s)

Stakeholder workshop(s)

Drop-in session(s)

Survey/feedback form(s)

Connect.Wagga

Email newsletter

Social media

Website

Inform

x

x

Consult

x

x

Involve

Collaborate

Other methods (please list specific details below)

 

 

 

1.	DA22/0568 - s4.15 Assessment Report - Provided under separate cover
2.	DA22/0568 - Plans - Provided under separate cover
3.	DA22/0568 - Statement of Environmental Effects - Provided under separate cover
4.	DA22/0568 - Redacted Submissions - Provided under separate cover

  

Report submitted to the Ordinary Meeting of Council on Monday 13 March 2023

RP-2

 

RP-2               RESPONSE TO NOTICE OF MOTION - PROPOSED ZERO-BASED BUDGET APPROACH

Author:         Carolyn Rodney 

         

 

Summary:

This report is in response to the 12 December 2022 Council meeting Notice of Motion requesting to receive a report on the options surrounding a zero-based budget approach for Council.

 

 

Recommendation That Council: a       note the listed benefits and outlined drawbacks to council and the community of a zero-based budget approach b       note the estimated costs and timing to undertake a zero-based budget c        note the potential funding options/grants to undertake a zero-based budget d       discuss the proposed Zero-Based Budgeting Program outlined in this report

 

At the 12 December 2022 Council Meeting it was resolved:

 

That Council receive a report by the end of March 2023 on undergoing a zero-based budget that includes but not limited to:

 

a       costs and timing to undertake a zero based budget including an option for an independent consultant

b       benefits to council and the community of a zero-based budget

c        funding options/grants to undertake the project

 

Current Budgeting Process at Wagga Wagga City Council

 

Wagga Wagga City Council (Council) have an adopted 10-year Long Term Financial Plan (LTFP), and under the Integrated Planning & Reporting (IP&R) framework, the LTFP is required to be updated and adopted on an annual basis. 

 

Council’s LTFP process involves the following:

 

·        Updates to assumptions for utilities costs and current tariff rates

·        Updates for estimated interest rates for interest income for Council’s investment portfolio and adopted future loan borrowings

·        Updates to the labour budget from the Organisational Structure

·        Updates to Rates & Annual Charges based on the rate peg announcement

·        Proposed Amendments to budget line items during monthly detailed reviews undertaken with Council’s Finance staff and Divisional Managers

·        Review of the current and future year Capital program, with amendments made throughout the year and reported to Council in order for the program to remain current and up to date.

 

Budget workshops are held with Executive and Councillors during the third quarter of each financial year (January-March) to discuss the overall budget, and any suggested amendments.

 

Under the IP&R framework staff are also required to report to council on a quarterly basis how the council is tracking to budget during a financial year – the Quarterly Budget Review Statement (QBRS). Council however undertakes a more detailed review and reporting process, and reports to Council monthly via the Financial Performance Report. This practice has been in place for many years and is seen advantageous for both staff and Councillors to maintain a more up to date rolling 10 year Long Term Financial Plan.

 

Zero-Based Budgeting

 

Zero-based budgeting (ZBB) is a budgeting process that allocates funding based on program efficiency and necessity, rather than budget history. As opposed to traditional budgeting, no item is automatically included in the next financial year budget. Justification of each budget line item is required in order to receive a funding allocation. 

 

The Deloitte company, summarise the advantages and disadvantages of ZBB in their 2015 paper titled “Zero-Based Budgeting: Zero or Hero?”, shown below for Councillors information:

 

 

Deloitte also go further in describing the advantages and disadvantages of ZBB in the public sector:

 

 

 

*Source: https://www2.deloitte.com/content/dam/Deloitte/us/Documents/risk/us-risk-zbb.pdf

 

As noted earlier in this report, Finance staff in consultation with Divisional managers review line by line each budget item every month. Whilst time consuming, this is seen advantageous for Divisional Managers and Finance Staff to be able to manage and monitor budgets.

 

 

Recent Detailed Service reviews undertaken, inclusive of a Zero-based budgeting process

 

Over the past few years, Council has undertaken detailed service reviews of three (3) Council functional areas. These reviews all included a zero-based budgeting process to inform Councillors on potential service delivery options/continue undertaking the service:

 

1.   Auspiced Family Day Care Service Review

By Council resolution after considering the service review and financial position report this service was ceased on 30 June 2020.

 

 

2.   City Library Service Review

By Council resolution after considering the service options and financial report this service moved to a Standalone Service and new staff structure, which commenced 1 July 2022.

 

3.   Auspiced Sector Support Review

By Council resolution after considering service and financial funding report this service will end 30 June 2023. The Sector Support functions will be covered by other Commonwealth funded services.

 

To ensure continuous improvement, business excellence and service efficiency, Council staff will continue to review functional service areas and report back to Councillors.  Council staff are proposing to work with Councillors on a prioritised list of functional areas to be reviewed.  Further detail provided in the Proposed Program section towards the end of this report.

 

Estimated Costs and timing to undertake a zero-based budget including an option for an independent consultant

 

Local Government Organisations are diverse organisations, with Wagga Wagga City Council responsible for over 80 functions (cost centres) across 20 diverse Divisional areas.  Given this, any zero-based budgeting process will require a considerable amount of time and dedicated resourcing.

 

The potential benefits/advantages to council and the community of implementing a zero-based budget is noted earlier in this report in Deloitte’s summary.  In reviewing the advantages, a review of the potential disadvantages also needs to be considered, with most notable being costly and time consuming.

 

Recent cost centre reviews undertaken have used a combination of both internal staff time, and specialised consultants. A complete service review of functional areas are time consuming tasks, and inclusive of both staff time and consultant charges, can be in the hundreds of thousands of dollars. 

 

Given this, and given the 80 plus functions Council undertakes, Council staff are proposing to undertake a rolling program of zero-based budgeting reviews, with at least three (3) functional areas undertaken annually. It is proposed for the first annual program to include the following areas, with further consultation with Councillors on the selected areas to be included in future reviews:

 

 

Proposed Zero-Based Budgeting Program

Functional Area	Status	Notes
Oasis Swimming Centre	Commenced	Initial SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis has been completed. Currently undertaking Zero-based budgeting process.
Development Assessment	Not yet commenced	To commence in 4th quarter 2022/23 (April-June).
Governance and Risk	Not yet commenced	To commence in 1st quarter 2023/24 (July-September).

 

The first workshop with Councillors on the Oasis is in the process of being scheduled.  These workshops on budgeting will continue on a rolling program throughout the years, as opposed to only the two (2) budget workshops held in February and March each year.

 

Funding options/grants to undertake the project

 

Council officers review grant eligibility criteria when grants are announced, to determine if it is appropriate to submit an application.  Grants to undertake service reviews have previously not been forthcoming, however Council officers will continue to review and assess grants as they are announced.

 

In the interim, Council officers are suggesting a hybrid method for detailed reviews – a combination of Council officers and engaging consultants where and when required.  As indicated above when reviewing what previous reviews undertaken by external consultants have cost, an annual consultant budget allocation for Zero-based budgeting reviews of $50K would be deemed appropriate.  Depending on what functional area has been selected, some years may require more funding for specialised consultants, with other yearly programs conducted in-house with existing staff resources.

 

Council officers will include a proposed $50K budget line item in the 2023/24 budget process for Councillors further consideration.

Budget Policy – POL 052

Community leadership and collaboration

Community satisfaction with long term planning for Wagga Wagga is increasing

Objective: Wagga Wagga has strong community leadership and a shared vision for the future

 

N/A

As noted earlier in this report, Council staff will be undertaking workshops with Councillors. 

 

 

 

Report submitted to the Ordinary Meeting of Council on Monday 13 March 2023

RP-3

 

RP-3               FINANCIAL PERFORMANCE REPORT AS AT 28 FEBRUARY 2023

Author:          Carolyn Rodney 

         

 

Summary:

This report is for Council to consider information presented on the 2022/23 budget and Long-Term Financial Plan, and details Council’s external investments and performance as at 28 February 2023.

 

 

Recommendation That Council: a       approve the proposed 2022/23 budget variations for the month ended 28 February 2023 and note the balanced budget position as presented in this report b       approve the proposed budget variations to the 2022/23 Long Term Financial Plan Capital Works Program including future year timing adjustments c        note the Responsible Accounting Officer’s reports, in accordance with the Local Government (General) Regulation 2021 (Part 9 Division 3: Clause 203) that the financial position of Council is satisfactory having regard to the original estimates of income and expenditure and the recommendations made above d       note the details of the external investments as of 28 February 2023 in accordance with section 625 of the Local Government Act 1993 e       approve the transfer of Additional Special Variation (ASV) funds to a separate reserve to fund future year bottom line deficits as per Resolution 22/122 f        accept the grant funding offers as presented in this report

 

Wagga Wagga City Council (Council) forecasts a balanced budget position as of 28 February 2023.

 

The balanced budget position excludes the Wagga Wagga Airport estimated deficit result for the financial year – as previously reported to Council, any Airport deficit result will be sanctioned, and funded in the interim by General Purpose Revenue (via the Internal Loans Reserve). The deficit results will be accounted for as a liability in the Airport’s end of financial year statements and paid back to General Purpose Revenue (Internal Loans Reserve) by the Airport in future financial years. 

 

Proposed budget variations including adjustments to the capital works program are detailed in this report for Council’s consideration and adoption.

 

Council has experienced a positive monthly investment performance for the month of February when compared to budget ($359,508 up on the monthly budget). This is mainly due to better than budgeted returns on Council’s investment portfolio, as a result of the ongoing movement in the interest rate environment, as well as a positive movement in Councils Floating Rate note portfolio for the month.

 

 

Key Performance Indicators

 

 

 

OPERATING INCOME

Total operating income is 75% of approved budget and is trending above budget for the month of February 2023. This is due to increased revenue from Interest on Investments. 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 96% when compared to budget.

 

OPERATING EXPENSES

Total operating expenditure is 68% of approved budget so it is tracking slightly over budget at this stage of the financial year. This is due to the commitment for multi-year software licences.

 

CAPITAL INCOME

Total capital income is 47% 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 in relation to expenditure incurred on the projects. This income also includes the sale of property, plant and equipment.

 

CAPITAL EXPENDITURE

Total capital expenditure including commitments is 46% of approved budget with some purchase orders being raised for the full contract amounts for multi-year projects. Excluding commitments, the total expenditure is 22% when compared to the approved budget.

 

WAGGA WAGGA CITY COUNCIL STATEMENT OF FINANCIAL PERFORMANCE 1 JULY 2022 TO 28 FEBRUARY 2023
CONSOLIDATED STATEMENT
	ORIGINAL BUDGET 2022/23	BUDGET ADJ 2022/23	APPROVED BUDGET 2022/23	YTD ACTUAL   EXCL COMMT'S 2022/23	COMMT'S 2022/23	YTD ACTUAL + COMMT'S 2022/23	YTD % OF BUD
Revenue
Rates & Annual Charges	(75,524,168)	0	(75,524,168)	(50,571,074)	0	(50,571,074)	67%
User Charges & Fees	(27,844,136)	(626,935)	(28,471,071)	(19,112,143)	0	(19,112,143)	67%
Other Revenues	(2,769,503)	(202,000)	(2,971,503)	(2,028,664)	0	(2,028,664)	68%
Grants & Contributions provided for Operating Purposes	(13,524,889)	4,645,395	(8,879,493)	(12,432,720)	0	(12,432,720)	140%
Grants & Contributions provided for Capital Purposes	(36,295,253)	(30,106,685)	(66,401,938)	(29,377,488)	0	(29,377,488)	44%
Interest & Investment Revenue	(1,828,128)	0	(1,828,128)	(3,712,025)	0	(3,712,025)	203%
Other Income	(1,406,222)	(54,000)	(1,460,222)	(1,014,521)	0	(1,014,521)	69%
Total Revenue	(159,192,300)	(26,344,225)	(185,536,524)	(118,248,635)	0	(118,248,635)	64%
Expenses
Employee Benefits & On-Costs	51,315,412	741,605	52,057,018	31,077,473	0	31,077,473	60%
Borrowing Costs	3,268,989	0	3,268,989	1,555,913	0	1,555,913	48%
Materials & Services	36,542,674	8,886,865	45,429,539	27,605,606	7,487,234	35,092,840	77%
Depreciation & Amortisation	43,196,051	0	43,196,051	28,797,368	0	28,797,368	67%
Other Expenses	1,866,271	2,023,345	3,889,616	3,591,387	15,511	3,606,898	93%
Total Expenses	136,189,398	11,651,815	147,841,213	92,627,746	7,502,745	100,130,491	68%
Net Operating (Profit)/Loss	(23,002,902)	(14,692,409)	(37,695,311)	(25,620,889)	7,502,745	(18,118,144)
Net Operating Result Before Capital (Profit)/Loss	13,292,351	15,414,276	28,706,627	3,756,599	7,502,745	11,259,345
Cap/Reserve Movements
Capital Expenditure - One Off Confirmed	13,638,521	67,934,079	81,572,600	17,279,240	24,892,818	42,172,058	52%
Capital Expenditure - Recurrent*	18,890,352	8,238,710	27,129,062	4,991,816	3,655,453	8,647,269	32%
Capital Expenditure - Pending Projects	59,770,944	(56,508,230)	3,262,713	2,970	0	2,970	0%
Loan Repayments	7,571,681	0	7,571,681	4,381,121	0	4,381,121	58%
New Loan Borrowings	(17,458,537)	11,279,368	(6,179,168)	0	0	0	0%
Sale of Assets	(880,181)	(4,037,359)	(4,917,540)	(4,314,901)	0	(4,314,901)	88%
Net Movements Reserves	(15,333,827)	(12,214,158)	(27,547,985)	0	0	0	0%
Total Cap/Res Movements	66,198,954	14,692,409	80,891,363	22,340,245	28,548,271	50,888,516
Net Result after Depreciation	43,196,052	0	43,196,052	(3,280,644)	36,051,016	32,770,372
Add back Depreciation Expense	43,196,051	0	43,196,051	28,797,368	0	28,797,368	67%
Cash Budget (Surplus)/Deficit	0	0	0	(32,078,011)	36,051,016	3,973,005

 

 

     Years 2-10 Long Term Financial Plan (Surplus) /Deficit

 

 

 

 

 

 

 

 

 

 

2022/23 Revised Budget Result – (Surplus) / Deficit	$’000s
Original 2022/23 Budget Result as adopted by Council Total Budget Variations approved to date Budget Variations for February 2023	$0K $0K $0K
Proposed Revised Budget result for 28 February 2023 - (Surplus) / Deficit	$0K

 

The proposed Operating and Capital Budget Variations for 28 February 2023 which affect the current 2022/23 financial year are listed below.

 

 

 

 

The following 2022/23 and future year projects have been reviewed by Council’s Project Management Team and delivery timelines rescheduled. There has been no change to the total budgets for these projects.

 

*The current year project budgets have been reviewed and at this stage no future year increases have been factored in due to the restrictions on the project funding source.  For future year project budget adjustments, once these projects are scoped in the year of commencement, adjustments/increases will be factored in and reported to Council at that time.

 

 

2022/23 Capital Works Summary

 

Capital Works	Approved Budget	Proposed Movement	Proposed Budget
One-off	$81,572,600	($302,677)	$81,269,923
Recurrent	$27,129,061	$0	$27,129,061
Pending	$3,262,713	$0	$3,262,713
Total Capital Works	$111,964,374	($302,677)	$111,661,697

Current Restrictions

 

RESERVES SUMMARY
28 FEBRUARY 2023
	CLOSING BALANCE 2021/22	ADOPTED RESERVE TRANSFERS 2022/23	BUDGET VARIATIONS APPROVED UP TO COUNCIL MEETING 27.2.2023	PROPOSED CHANGES for Council Resolution*	BALANCE AS AT 28 FEBRUARY 2023
Externally Restricted
Developer Contributions - Section 7.11	(31,045,478)	7,213,679	(7,421,600)		(31,253,399)
Developer Contributions - Section 7.12	(278,187)	(28,179)	0		(306,366)
Developer Contributions - Stormwater Section 64	(7,112,864)	(786,229)	281,476		(7,617,617)
Sewer Fund	(32,439,399)	673,962	2,726,899		(29,038,538)
Solid Waste	(24,880,735)	7,737,392	(3,486,453)		(20,629,796)
Specific Purpose Unexpended Grants & Contributions	(4,195,951)		4,195,951		0
SRV Levee Reserve	(6,357,282)	0	57,520		(6,299,762)
Stormwater Levy	(5,150,281)	35,773	610,957		(4,503,551)
Total Externally Restricted	(111,460,179)	14,846,399	(3,035,249)	0	(99,649,029)
Internally Restricted
Airport	0	0	0		0
Art Gallery	(3,804)	0	0		(3,804)
Bridge Replacement	(296,805)	0	0	60,000	(236,805)
Buildings	(1,088,635)	(23,658)	258,460		(853,832)
CCTV	(100,843)	30,633	30,000		(40,211)
Cemetery	(882,761)	(226,784)	46,123		(1,063,421)
Civic Theatre	(44,048)	0	43,922		(127)
Civil Infrastructure	(9,317,219)	1,598,454	(326,175)		(8,044,940)
Community Works	(159,648)	140,317	12,555		(6,776)
Council Election	(235,385)	(112,845)	49,085		(299,146)
Economic Development	(419,160)	60,000	349,832		(9,328)
Emergency Events Reserve	(639,548)	(120,142)	(275,120)		(1,034,810)
Employee Leave Entitlements Gen Fund	(3,453,655)	0	0		(3,453,655)
Environmental Conservation	(116,578)	41,578	0		(75,000)
Event Attraction	(491,893)	0	210,249		(281,644)
Financial Assistance Grants in Advance	(8,536,837)	0	8,536,837		0
Grant Co-Funding	(500,000)	0	0		(500,000)
Gravel Pit Restoration	(816,897)	3,333	0		(813,564)
Information Services	(1,835,475)	(507,158)	179,643		(2,162,990)
Insurance Variations	(50,000)	0	0		(50,000)
Internal Loans	(3,649,517)	(201,545)	(395,037)	51,327	(4,194,772)
Lake Albert Improvements	(105,839)	(21,366)	0		(127,205)
Library	0	(171,724)	0		(171,724)
Livestock Marketing Centre	(6,032,463)	685,981	2,177,470		(3,169,012)

 

 

 

 

 

Investment Summary as at 28 February 2023

In accordance with Regulation 212 of the Local Government (General) Regulation 2021, details of Wagga Wagga City Council’s external investments are outlined below.

 

Institution	Rating	Closing Balance Invested 31/01/2023 $	Closing Balance Invested 28/02/2023 $	February EOM Current Yield %	February EOM % of Portfolio	Investment Date	Maturity Date	Term (months)
At Call Accounts
NAB	AA-	259,854	234,127	3.35%	0.11%	N/A	N/A	N/A
CBA	AA-	4,261,375	13,630,982	3.35%	6.49%	N/A	N/A	N/A
CBA	AA-	17,045,069	17,092,310	3.40%	8.14%	N/A	N/A	N/A
Macquarie Bank	A+	9,189,371	9,211,708	3.20%	4.39%	N/A	N/A	N/A
Total At Call Accounts		30,755,669	40,169,127	3.34%	19.14%
Short Term Deposits
CBA	AA-	2,000,000	2,000,000	2.22%	0.95%	20/04/2022	20/04/2023	12
CBA	AA-	2,000,000	2,000,000	3.68%	0.95%	8/06/2022	8/06/2023	12
AMP	BBB	1,000,000	1,000,000	4.70%	0.48%	15/11/2022	15/11/2023	12
AMP	BBB	2,000,000	2,000,000	4.55%	0.95%	30/11/2022	30/11/2023	12
CBA	AA-	1,000,000	1,000,000	4.69%	0.48%	30/01/2023	30/01/2024	12
Total Short Term Deposits		8,000,000	8,000,000	3.79%	3.81%
Medium Term Deposits
BOQ	BBB+	2,000,000	2,000,000	1.20%	0.95%	4/01/2022	4/01/2024	24
BOQ	BBB+	1,000,000	1,000,000	3.78%	0.48%	1/06/2022	3/06/2024	24
Westpac	AA-	2,000,000	2,000,000	1.32%	0.95%	28/06/2021	29/06/2026	60
Westpac	AA-	2,000,000	2,000,000	1.80%	0.95%	15/11/2021	17/11/2025	48
BoQ	BBB+	1,000,000	1,000,000	2.15%	0.48%	8/07/2019	10/07/2023	48
ICBC	A	2,000,000	2,000,000	2.03%	0.95%	6/11/2019	6/11/2024	60
ICBC	A	2,000,000	2,000,000	1.83%	0.95%	28/11/2019	28/11/2024	60
Judo Bank	BBB-	1,000,000	1,000,000	1.30%	0.48%	3/12/2021	4/12/2023	24
ICBC	A	1,000,000	1,000,000	1.75%	0.48%	6/01/2020	8/01/2024	48
BOQ	BBB+	1,000,000	1,000,000	2.00%	0.48%	28/02/2020	28/02/2025	60
Police Credit Union	NR	1,000,000	1,000,000	2.20%	0.48%	1/04/2020	1/04/2025	60
ICBC	A	1,000,000	1,000,000	1.85%	0.48%	29/05/2020	29/05/2025	60
ICBC	A	1,000,000	1,000,000	1.86%	0.48%	1/06/2020	2/06/2025	60
ICBC	A	2,000,000	2,000,000	1.75%	0.95%	25/06/2020	25/06/2025	60
ICBC	A	2,000,000	2,000,000	1.75%	0.95%	25/06/2020	25/06/2025	60
ICBC	A	2,000,000	2,000,000	1.60%	0.95%	29/06/2020	28/06/2024	48
ICBC	A	3,000,000	3,000,000	5.07%	1.43%	30/06/2022	30/06/2027	60
ICBC	A	2,000,000	2,000,000	1.42%	0.95%	7/07/2020	8/07/2024	48
ICBC	A	2,000,000	2,000,000	1.50%	0.95%	17/08/2020	18/08/2025	60
BoQ	BBB+	1,000,000	1,000,000	1.25%	0.48%	7/09/2020	8/09/2025	60
BoQ	BBB+	2,000,000	2,000,000	1.25%	0.95%	14/09/2020	15/09/2025	60
NAB	AA-	1,000,000	1,000,000	0.60%	0.48%	14/09/2021	14/09/2023	24
AMP	BBB	1,000,000	1,000,000	3.30%	0.48%	25/05/2022	27/11/2023	18
ICBC	A	1,000,000	1,000,000	1.20%	0.48%	7/12/2020	8/12/2025	60
NAB	AA-	2,000,000	2,000,000	0.95%	0.95%	29/01/2021	29/01/2026	60
NAB	AA-	1,000,000	1,000,000	1.08%	0.48%	22/02/2021	20/02/2026	60
NAB	AA-	2,000,000	2,000,000	1.25%	0.95%	3/03/2021	2/03/2026	60
Summerland CU	NR	1,000,000	1,000,000	0.75%	0.48%	29/04/2021	28/04/2023	24
NAB	AA-	2,000,000	2,000,000	1.40%	0.95%	21/06/2021	19/06/2026	60
NAB	AA-	2,000,000	2,000,000	0.65%	0.95%	25/06/2021	26/06/2023	24
Westpac	AA-	2,000,000	2,000,000	1.32%	0.95%	25/06/2021	25/06/2026	60
ICBC	A	1,000,000	1,000,000	1.32%	0.48%	25/08/2021	25/08/2026	60
NAB	AA-	2,000,000	2,000,000	0.65%	0.95%	31/08/2021	31/08/2023	24
AMP	BBB	2,000,000	2,000,000	1.00%	0.95%	18/10/2021	17/10/2024	36
Westpac	AA-	2,000,000	2,000,000	1.56%	0.95%	30/11/2021	29/11/2024	36
Westpac	AA-	2,000,000	2,000,000	2.00%	0.95%	8/02/2022	10/02/2025	36
P&N Bank	BBB	2,000,000	2,000,000	2.40%	0.95%	9/03/2022	10/03/2025	36
P&N Bank	BBB	2,000,000	2,000,000	2.00%	0.95%	10/03/2022	11/03/2024	24
MyState	BBB	2,000,000	2,000,000	2.20%	0.95%	2/03/2022	3/03/2025	36
CBA	AA-	2,000,000	2,000,000	3.28%	0.95%	26/04/2022	26/04/2024	24
CBA	AA-	2,000,000	2,000,000	3.78%	0.95%	4/05/2022	6/05/2024	24
CBA	AA-	2,000,000	2,000,000	3.99%	0.95%	4/05/2022	5/05/2025	36
ING Bank	A	1,000,000	1,000,000	3.76%	0.48%	23/05/2022	23/05/2024	24
ICBC	A	2,000,000	2,000,000	3.95%	0.95%	6/06/2022	6/06/2024	24
Australian Unity	BBB+	2,000,000	2,000,000	4.15%	0.95%	8/06/2022	11/06/2024	24
Suncorp	A+	2,000,000	2,000,000	4.40%	0.95%	22/06/2022	14/12/2023	18
MyState	BBB	2,000,000	2,000,000	4.45%	0.95%	29/06/2022	28/06/2024	24
BoQ	BBB+	1,000,000	1,000,000	4.50%	0.48%	7/07/2022	7/07/2025	36
CBA	AA-	1,000,000	1,000,000	4.25%	0.48%	12/08/2022	12/08/2025	36
P&N Bank	BBB	3,000,000	3,000,000	4.55%	1.43%	29/08/2022	29/08/2025	36
Australian Military Bank	BBB+	2,000,000	2,000,000	4.55%	0.95%	2/09/2022	2/09/2025	36
P&N Bank	BBB	1,000,000	1,000,000	4.40%	0.48%	9/09/2022	9/09/2025	36
BoQ	BBB+	1,000,000	1,000,000	4.70%	0.48%	4/10/2022	4/10/2024	24
AMP	BBB	2,000,000	2,000,000	4.95%	0.95%	21/10/2022	21/10/2024	24
ICBC	A	2,000,000	2,000,000	5.20%	0.95%	21/10/2022	21/10/2025	36
AMP	BBB	1,000,000	1,000,000	4.75%	0.48%	15/11/2022	14/11/2024	24
AMP	BBB	1,000,000	1,000,000	4.80%	0.48%	21/11/2022	20/11/2025	36
P&N Bank	BBB	2,000,000	2,000,000	4.75%	0.95%	16/12/2022	16/12/2024	24
Police Credit Union	NR	0	2,000,000	5.04%	0.95%	15/02/2023	17/02/2025	24
Total Medium Term Deposits		96,000,000	98,000,000	2.66%	46.69%
Floating Rate Notes - Senior Debt
Westpac	AA-	2,531,442	2,516,059	BBSW + 88	1.20%	16/05/2019	16/08/2024	63
Suncorp	A+	1,251,052	1,255,167	BBSW + 78	0.60%	30/07/2019	30/07/2024	60
ANZ	AA-	2,018,754	2,006,922	BBSW + 77	0.96%	29/08/2019	29/08/2024	60
HSBC	AA-	2,510,130	2,520,170	BBSW + 83	1.20%	27/09/2019	27/09/2024	60
ANZ	AA-	1,506,063	1,512,354	BBSW + 76	0.72%	16/01/2020	16/01/2025	60
NAB	AA-	2,004,679	2,014,975	BBSW + 77	0.96%	21/01/2020	21/01/2025	60
Newcastle Permanent	BBB	1,110,027	1,102,538	BBSW + 112	0.53%	4/02/2020	4/02/2025	60
Macquarie Bank	A+	2,014,778	2,004,690	BBSW + 84	0.96%	12/02/2020	12/02/2025	60
BOQ Covered	AAA	556,936	554,217	BBSW + 107	0.26%	14/05/2020	14/05/2025	60
Credit Suisse	A+	1,303,850	1,296,290	BBSW + 115	0.62%	26/05/2020	26/05/2023	36
UBS	A+	1,497,295	1,504,781	BBSW + 87	0.72%	30/07/2020	30/07/2025	60
Bank of China Australia	A	1,498,379	1,503,206	BBSW + 78	0.72%	27/10/2020	27/10/2023	36
CBA	AA-	1,983,760	1,997,213	BBSW + 70	0.95%	14/01/2022	14/01/2027	60
Rabobank	A+	1,980,814	1,991,851	BBSW + 73	0.95%	27/01/2022	27/01/2027	60
Newcastle Permanent	BBB	985,446	982,288	BBSW + 100	0.47%	10/02/2022	10/02/2027	60
NAB	AA-	2,396,019	2,384,935	BBSW + 72	1.14%	25/02/2022	25/02/2027	60
Bendigo-Adelaide	BBB+	1,657,965	1,666,009	BBSW + 98	0.79%	17/03/2022	17/03/2025	36
ANZ	AA-	2,016,232	2,007,903	BBSW + 97	0.96%	12/05/2022	12/05/2027	60
NAB	AA-	1,719,405	1,709,387	BBSW + 90	0.81%	30/05/2022	30/05/2025	36
Suncorp	A+	908,512	903,817	BBSW + 93	0.43%	22/08/2022	22/08/2025	36
ANZ	AA-	2,547,979	2,534,565	BBSW + 120	1.21%	4/11/2022	4/11/2027	60
NAB	AA-	2,543,180	2,527,623	BBSW + 120	1.20%	25/11/2022	25/11/2027	60
Suncorp	A+	1,114,086	1,121,284	BBSW + 125	0.53%	14/12/2022	14/12/2027	60
CBA	AA-	2,010,977	2,028,699	BBSW + 115	0.97%	13/01/2023	13/01/2028	60
Bank Australia	BBB	0	1,906,397	BBSW + 155	0.91%	22/02/2023	22/02/2027	48
Total Floating Rate Notes - Senior Debt		41,667,759	43,553,340		20.75%
Fixed Rate Bonds
ING Covered	AAA	669,597	659,377	1.10%	0.31%	19/08/2021	19/08/2026	60
Northern Territory Treasury	AA-	3,000,000	3,000,000	1.00%	1.43%	24/08/2021	16/12/2024	40
Northern Territory Treasury	AA-	3,000,000	3,000,000	1.50%	1.43%	24/08/2021	15/12/2026	64
BoQ	BBB+	1,733,944	1,717,805	2.10%	0.82%	27/10/2021	27/10/2026	60
Northern Territory Treasury	AA-	2,000,000	2,000,000	1.50%	0.95%	6/08/2021	15/12/2026	64
Northern Territory Treasury	AA-	1,000,000	1,000,000	1.50%	0.48%	14/07/2021	15/12/2026	65
Northern Territory Treasury	AA-	2,000,000	2,000,000	1.30%	0.95%	29/04/2021	15/06/2026	61
Northern Territory Treasury	AA-	2,000,000	2,000,000	1.00%	0.95%	30/11/2020	15/12/2025	60
Northern Territory Treasury	AA-	1,000,000	1,000,000	1.00%	0.48%	20/11/2020	15/12/2025	61
Northern Territory Treasury	AA-	2,000,000	2,000,000	1.00%	0.95%	21/10/2020	15/12/2025	62
Total Fixed Rate Bonds		18,403,541	18,377,182	1.30%	8.76%
Managed Funds
NSW Tcorp	NR	1,804,898	1,789,798	-0.84%	0.85%	17/03/2014	1/02/2028	166
Total Managed Funds		1,804,898	1,789,798	-0.84%	0.85%
TOTAL CASH ASSETS, CASH EQUIVALENTS & INVESTMENTS		196,631,867	209,889,446		100.00%
LESS: RIVERINA REGIONAL LIBRARY (RRL) CASH AT BANK		2,713,323	2,460,514
TOTAL WWCC CASH ASSETS, CASH EQUIVALENTS & INVESTMENTS		193,918,545	207,428,932

 

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 19%, with Floating Rate Notes (FRNs) around 21%, fixed rate bonds around 9% and growth funds around 1% of the portfolio.

 

 

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

 

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

 

Investment Portfolio Balance

 

Council’s investment portfolio balance has increased significantly over the past month, up from $193.92M to $207.43M. This is reflective of the 2022/23 third quarter rates instalments being due at end of February 2023.

 

 

 

Monthly Investment Movements

 

Redemptions/Sales – Council did not redeem or sell any investment securities during February 2023.

 

New Investments – Council purchased the following investment securities during February 2023:

 

 

Rollovers – Council did not rollover any investment securities during February 2023.

 

 

 

Monthly Investment Performance

 

Interest/growth/capital gains/(losses) for the month totalled $491,459, which compares favourably with the budget for the period of $131,951 - outperforming budget for the month by $359,508.

 

Council’s outperformance to budget for February is mainly due to better than budgeted returns on Councils investment portfolio. This is a result of the ongoing movements in the cash rate made by the Reserve Bank of Australia, with the latest increase in early February 2023 bringing the cash rate to 3.35% from a record low of 0.10% in April 2022.

 

Council also experienced a positive return on its Floating Rate note portfolio for the month of February, with the principal value of this portfolio increasing by +0.18% (or $75,609) between 31 January 2023 and 28 February 2023.

 

Council staff will continue to review the impacts of the interest rate movements against budget over the coming months, leading up to the scheduled 2023/24 Long Term Financial Plan budget workshops. In reviewing estimated interest revenue, consideration of interest expense for future loan borrowings also needs to occur.

 

 

In comparison to the AusBond Bank Bill Index* of 3.18% (annualised), Council’s investment portfolio returned 2.64% (annualised) for the month of February. Cash and At‑Call accounts returned 3.25% (annualised) for the month. 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, Council’s investment portfolio has returned 2.17%, outperforming the AusBond Bank Bill index by 0.42%.

 

* 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

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 2021

Section 212 - Reports on council investments

Community Leadership and Collaboration

Objective: We have strong leadership

Outcome: We are accountable and transparent

 

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

All relevant areas within 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.

 

 

 

1⇩.

Capital Works Program 2022/23 to 2032/33