Agenda and
Business Paper

 

Ordinary Meeting of Council

 

 

 

To be held on
Monday 29 April 2024

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

NOTICE OF MEETING

 

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.

 

 

WAGGA WAGGA CITY COUNCILLORS

 

STATEMENT OF ETHICAL OBLIGATIONS

Councillors are reminded of their Oath or Affirmation of Office made under Secion 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 29 April 2024

ORDER OF BUSINESS:

CLAUSE               PRECIS                                                                                       PAGE

ACKNOWLEDGEMENT OF COUNTRY                                                                          3

REFLECTION                                                                                                                3

APOLOGIES                                                                                                                 3

Confirmation of Minutes

CM-1           ORDINARY COUNCIL MEETING - 8 APRIL 2024                                        3

DECLARATIONS OF INTEREST                                                                                    3

Mayoral Minutes

MM-1           Mayoral Minute - Wagga Wagga Airport Lease Advocacy     4

Reports from Staff

RP-1            DA23/0264 - Demolition of existing building and construction of a 5 storey building containing 2 ground floor commercial tenancies and shop top housing consisting of 16 dwellings - 115 Fitzmaurice Street, Wagga Wagga                                                                                     23

RP-2            FINANCIAL PERFORMANCE REPORT AS AT 31 MARCH 2024               30

RP-3            Procurement and Disposal Policy (POL 110) and Corporate Purchase Card Policy (POL 053)                                                                         64

RP-4            REQUESTS FOR FINANCIAL ASSISTANCE - SECTION 356                    90

RP-5            PROPOSED LICENCE AGREEMENT FOR PART 344 BOURKE STREET, WAGGA WAGGA, BEING PART LOT 4 DP 790509 - UPDATE TO LICENSEE DETAILS     96

RP-6            Unreasonable Complainant Contact Policy (POL 056)            98

RP-7            RESOLUTIONS AND NOTICES OF MOTIONS REGISTERS                    118

RP-8            QUESTIONS WITH NOTICE                                                                    120

Committee Minutes

M-1              Local Traffic Committee - Minutes - 11 April 2024                   122   

Confidential Reports

CONF-1       Wagga Wagga Airport Upgrade Business Case                      136

CONF-2       PASSENGER & BAGGAGE SCREENING SERVICES WAGGA WAGGA AIRPORT CONTRACT EXTENSION (RFT2017-20)                                                  137

CONF-3       PROPOSED COMMERCIAL LEASE - 84 TREATMENT WORKS ACCESS ROAD, FOREST HILL, BEING PART LOT2 DP 581941                                                      138

CONF-4       RFT2024-24 SEWER MAINS REHABILITATION                                      139

 

 

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 - 8 APRIL 2024       

 

Recommendation That the Minutes of the proceedings of the Ordinary Council Meeting held on 8 April 2024 be confirmed as a true and accurate record.

 

 

 

1⇩.

Minutes - Ordinary Council - 8 April 2024

140

 

 

DECLARATIONS OF INTEREST

Report submitted to the Ordinary Meeting of Council on Monday 29 April 2024

MM-1

 

Mayoral Minute

MM-1              Mayoral Minute - Wagga Wagga Airport Lease Advocacy       

Summary:

This Mayoral Minute recommends Council commence an advocacy campaign for the Commonwealth Department of Defence (Defence) to enter into a new lease with Council to operate Wagga Wagga Airport. This will ensure that Council is able to continue to deliver this essential community service for our local community and the wider region.

 

 

That Council:

a       receive and note the Mayoral Minute

b       write to stakeholders by the end of this week requesting letters of support for Council to retain the lease and operation of the Wagga Wagga Airport

c        delegate the Mayor and General Manager to meet again with the Deputy Prime Minister, Minister for Defence and the Assistant Minister for Defence

d       advocate and lobby all levels of government for Council to retain the lease of Wagga Wagga Airport

e       receive a follow up report from staff outlining the actions taken in relation to this advocacy campaign and outcomes achieved

Background: 

Wagga Wagga Airport (Wagga Airport) is one of the most significant regional transport gateways in NSW, with it being pivotal infrastructure for Wagga Wagga and the Riverina Region. The Wagga Airport has a critical role in connecting the Riverina Region to the rest of Australia, which primarily occurs for health, education, commerce, and tourism.  

 

Wagga Wagga is the largest urban centre in the Riverina supporting a highly diverse economy that services a catchment population of 297,000 people well beyond its local government area boundary. 

 

Specifically, there is a reliance on Wagga Airport for:

·    Business and private passengers - approximately 200,000 per year.

·    Accessibility and medical services – the health sector relies on the Airport to access Wagga Wagga Base Hospital, with 6,000 RPT seats occupied by health professionals each year.

·    Health patient transfers – on average there are between two to seven flights per day for medical evacuations, and 700-750 patient transfers a year at Wagga Airport.

·    The Rural Fire Service (RFS) is increasingly using the Airport for firefighting.

·    Aviation training – the airport is a hub for pilot training, with a 200 bed Australian Airline Pilot Academy, owned and operated by Regional Express Airlines (Rex) and through Wagga Air Centre, supplying trainee pilots that flow through to Australian and International airlines.

·    Maintenance base – Rex has their heavy maintenance engineering facility at the Airport.

·    General aviation – is a significant part of Wagga Airport and its aviation community. There are currently 60 members with 35 privately owned aircraft housed in private hangars on leased land at the Airport.  

 

The Commonwealth Department of Defence, and the Royal Australian Air Force (RAAF) have a long history in Wagga with RAAF Forest Hill (now known as RAAF base Wagga) becoming operational in July 1940. 

 

Lease: 

Wagga Wagga City Council has operated the Wagga Airport under a 30-year lease from the Commonwealth Department of Defence, which is due to expire in June 2025. Council has been seeking a 49-year lease with a further 50-year option; however, Council will consider a shorter-term lease if that is offered by Defence. 

 

Council bears the full cost of maintaining and upgrading all airport facilities, including runways, taxiways, and aviation infrastructure. 

 

In addition, the conditions of the lease effectively penalises Council for any improvements or developments that are undertaken through linking lease value to investment. 

 

Council has been actively advocating over the past three (3) years for a future lease beyond the current lease, which is due to expire in June 2025, however to date Council has not received an outcome and way forward from Defence. 

 

Business Case: 

Council received funding from Department of Regional NSW as part of the Business Case and Strategy Fund to develop a business case to consider an upgrade of Wagga Wagga Airport Terminal. The initial Business Case has now been finalised. 

 

Obviously without any security over tenure Council is unable to apply for any future potential funding to support an upgrade to the currently run down and outdated Wagga Wagga Airport facility. 

 

The need for advocacy: 

Council has become extremely disappointed and frustrated that over a long period of time that our Federal member and successive governments have not resolved the lease issue to meet the needs of the community for the lease of the Wagga Wagga Airport to be retained by Council. 

 

A local government managed airport ensures the community, through its elected members, has visibility and input into the airport’s operations and prioritises and optimises the broader economic and social needs that may not be considered under a private for-profit entity. 

 

In my view, if Wagga Wagga Airport is leased to a private operator the risk is this arrangement will be profit driven and cost increases will be passed onto airlines and members of the public using the airport, resulting in significantly reduced accessibility to services for residents and businesses, creating disadvantage for our communities locally and regionally.

 

There are also flow-on concerns that the lack of access to an adequate and affordable community airport will result in the community seeking alternative airport facilities. Potentially Albury would become the hub which would have economic and social impacts to our community. 

 

Council has made representations to the Commonwealth Department of Defence (Defence) and the Federal Member for Riverina over a long period of time in relation to the tenure issue of Wagga Wagga Airport. In March this year Council met with the Deputy Prime Minister and Minister for Defence the Hon Richard Marles MP, Assistant Minister for Defence the Hon Matt Thistlethwaite MP and the Federal Member for Riverina the Hon Michael McCormack MP. Council has still not received a resolution or positive outcome for our community.  

 

Therefore, Council feels that we have no other option but to commence a public campaign to advocate to secure tenure of the Wagga Wagga Airport beyond June 2025 when the current lease expires. 

 

Advocacy will include seeking current letters of support from key users of the Airport and regional stakeholders to articulate the impact to our local community if the lease is not extended and operation of the Airport is not retained by Council. 

 

The advocacy information regarding the need for Council to retain the lease and operation of the Airport will be shared with all levels of government and all ministers to communicate the injustice that our community has been and is continuing to be subjected to by Defence.  

 

Support from stakeholders: 

Council has already received various letters of support from key stakeholders who rely on the Wagga Airport and who would be significantly impacted by a decision from Defence if they opt to privatise the Airport and don’t renew Councils lease of the Wagga Airport. In addition to this Council will be writing to those stakeholders again to reaffirm their position and also including additional new stakeholders to request their support. 

 

These stakeholders include:  

·        Hon Michael McCormack – Federal Member for Riverina

·        Dr Joe McGirr – Independent Member for Wagga Wagga 

·        Committee 4 Wagga 

·        Riverina Regional Development Australia 

·        Business NSW 

·        Wagga Wagga Business Chamber 

·        Murrumbidgee Local Health District 

·        Riverina Medical Specialist Recruitment and Retention Committee 

·        REROC 

·        All Riverina Regional Councils 

·        Wagga City Aero Club 

·        General Aviation at Wagga Wagga Airport

·        Australian Airline Pilot Academy 

·        Qantas Airlines 

·        Regional Express Airlines 

·        Bonza Airlines 

·        Charles Sturt University 

·        Riverina Institute of TAFE 

·        Visy 

N/A

Local Government Act 1993

Wagga Wagga Local Environmental Plan 2010

Airports Act 1996

Growing Economy

Objective: Wagga Wagga is a thriving, innovative and connected regional capital city

Improve, maintain and renew transport networks and building infrastructure to provide safe, affordable, efficient, and reliable transport connections for our community

 

There are significant risk management issues for Council, our local community and the wider region if the lease of the Wagga Wagga Airport issue is not resolved.

Stakeholder engagement has occurred leading up to this Mayoral Minute and further engagement will occur as part of the proposed advocacy campaign.

 

 

 

1⇩.	Letter of support - Dr Joe McGirr MP
2⇩.	Letter of support - Riverina Regional Development Australia
3⇩.	Letter of support - Committee 4 Wagga
4⇩.	Letter of support - Murrumbidgee Local Health District
5⇩.	Letter of support - Coolamon Shire Council
6⇩.	Letter of support - Lockhart Shire Council
7⇩.	Letter of support - Wagga Wagga Business Chamber
8⇩.	Letter of support - Wagga City Aeroclub
9⇩.	Letter of support - John Smith
10⇩.	Letter of support - Nick Leywood

 

 

Report submitted to the Ordinary Meeting of Council on Monday 29 April 2024

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Report submitted to the Ordinary Meeting of Council on Monday 29 April 2024

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Report submitted to the Ordinary Meeting of Council on Monday 29 April 2024

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Report submitted to the Ordinary Meeting of Council on Monday 29 April 2024

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Report submitted to the Ordinary Meeting of Council on Monday 29 April 2024

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Report submitted to the Ordinary Meeting of Council on Monday 29 April 2024

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Report submitted to the Ordinary Meeting of Council on Monday 29 April 2024

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Report submitted to the Ordinary Meeting of Council on Monday 29 April 2024

MM-1

 

Report submitted to the Ordinary Meeting of Council on Monday 29 April 2024

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Report submitted to the Ordinary Meeting of Council on Monday 29 April 2024

MM-1

 

 

Report submitted to the Ordinary Meeting of Council on Monday 29 April 2024

RP-1

 

Reports from Staff

RP-1               DA23/0264 - Demolition of existing building and construction of a 5 storey building containing 2 ground floor commercial tenancies and shop top housing consisting of 16 dwellings - 115 Fitzmaurice Street, Wagga Wagga

Author:                        Amanda Gray 

General Manager:    Peter Thompson

         

 

Summary:

The report is for a development application and is presented to Council for determination. The application includes a request for variations of development standards under the provisions of clause 4.6 of the Wagga Wagga Local Environmental Plan (LEP) 2010.   The concurrence of the Planning Secretary (NSW Department of Planning and Environment) is required for variations to development standards under clause 4.6 of the LEP 2010.  The Planning Secretary has issued deemed concurrence to Council by written notice dated 21 February 2018, to determine applications that include variations to development standards under clause 4.6. This deemed concurrence, however, is conditional that a delegate of the Council may not determine a development that departs from a numerical standard by more than 10%. As the subject proposal seeks variation to a development standard by more than 10%, the application must be determined by the elected Council.   Two public submissions were received during the notification period in objection.   A full assessment of the development application, including an assessment of the request for variation to development standards under Clause 4.6 of the LEP 2010, is provided as an attachment to this report.  The assessment has considered and addressed all relevant matters raised in the submissions.

 

 

That Council approve Development Application DA23/0264 for the demolition of existing building and construction of a 5 storey building containing 2 ground floor commercial tenancies and shop top housing consisting of 16 dwellings, Lot 12 DP 759031, Lot 2 DP 913838, Lot 1 DP 913839 and Lot 3 DP 913840, 115 Fitzmaurice Street, Wagga Wagga.

 

 

Applicant	Architects Ring & Associates Pty Ltd Director - Terrence Philip Ring
Owner	Anne and Garry Xuereb
Development Cost	$7,865,000.00
Development Description	The development comprises the following components: ·   Demolition of the existing single storey commercial building. ·   Construction of a mixed use five storey building comprising:   o Ground Floor - two commercial tenancies and residential foyer fronting Fitzmaurice Street and car parking to the rear with access from Cadell Place.   o Floors 1 – 4 - each floor containing 4 dwellings (16 in total) with either open or enclosed balconies to Fitzmaurice Street and open balconies to Cadell Place.

 

Key Issues

 

·    Requested variation to LEP development standards relating to building height and floor space ratio, including the potential impacts of these variations.

·    Impact of the building demolition and proposed construction on heritage conservation area and Fitzmaurice Street precinct.

·    Assessment against the provisions of State Environmental Planning Policy (Housing) 2021 (SEPP) including the design principles for residential apartment development and the Apartment Design Guideline.

 

Assessment

 

·    Under the LEP the site is zoned E2 - Commercial Core. The development is characterised as “shop top housing” The development is permitted with consent within the E2 zone and is consistent with the objectives of the zone.

·    The application seeks variations to 2 development standards contained within the LEP 2010. The variations have been assessed in accordance with the requirements of Clause 4.6 of the LEP. The variations are as follows:

 

o  Clause 4.3 - Height of buildings – The maximum building height under this clause is 16 metres. Proposed building height is 17.2 metres.

 

o  Clause 4.4 - Floor space ratio – The maximum floor space ratio under this clause is 2:1. Proposed floor space ratio is 2.58:1.

 

Having regard to the assessment against the provisions and objectives of both of the standards and the overall assessment contained in the 4.15 assessment report, it is satisfied that there are sufficient environmental planning grounds to justify the development contravening the 2 development standards and that strict compliance with the standards would be unreasonable in the circumstances. It is also satisfied that the development, incorporating the variations, will meet the public interest test required under the clause. An appropriate degree of flexibility has been applied to the standards and it is recommended that the variations be supported.

 

·    The development is located within the heritage conservation area. The effect of the proposed development on the heritage significance of the conservation area has been considered as required under Clause 5.10. A full assessment as detailed under Section 3.3.1 of the DCP 2010 has demonstrated that the application will not result in a detrimental impact on the area.

·    The proposed development is consistent with the remaining provisions of the LEP 2010.

·    The development is subject to the provisions relating to residential apartment development under Chapter 4 of State Environmental Planning Policy (Housing) 2021 (SEPP). In accordance with the SEPP, the quality of the design of the development has been evaluated against the design principles for residential apartment development set out in Schedule 9 of the SEPP and also the relevant sections and objectives of the NSW Government Apartment Design Guideline. The development is deemed appropriate with regard to this evaluation.

·    The proposed development has been assessed as generally consistent with the objectives and controls of the Wagga Wagga Development Control Plan 2010, including Sections 3.3.1, 10.1 and 12.8 identified below.

·    A full assessment of the impact of the development has been undertaken against the provisions relating to the Fitzmaurice Street Precinct and the heritage conservation area under the provisions of sections 3.3.1 and 10.1 of the DCP 2010.  This includes a review of the submitted Heritage Impact Assessment and various advice and comment received from Council’s Heritage Advisor.  Having regard to this overall assessment, it is considered that the development will not have a detrimental impact on the heritage conservation area and is in keeping with the future desired character of the Fitzmaurice Street precinct.

·    Section 12.8 of the DCP 2010 requires consideration against the Riverside Strategic Master Plan 2010. The development is consistent with the relevant objectives, strategies and design principles contained in the plan.

·    Two public submissions were received during the notification period raising concerns summarised below. All matters raised in submissions have been considered in the assessment of the application and addressed in the 4.15 assessment report.

 

o  Impact of requested variation to maximum height of building on:

-    Heritage conservation area

-    Shadow/solar impacts

o  Insufficient car parking proposed.

o  Requested variation to building height and floor space ratio is not justified and does not meet minimum standards as per NSW Planning guidelines for clause 4.6 variations.

o  Need for careful interrogation of impacts on heritage conservation area.

o  Potential impacts on adjoining properties caused by demolition and construction works.

 

·    A comprehensive assessment report completed in accordance with the provisions of Section 4.15(1) of the Environmental Planning and Assessment Act 1979 is provided as an attachment to this report.  This assessment addresses all maters identified above in further detail and also considers all other relevant heads of consideration including the likely impacts of the development and the suitability of the site.

·    Having regard to this assessment, the application is recommended for approval subject to the inclusion of recommended conditions of consent.

 

Reasons for Approval

 

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

2.    The requested variation to development standards contained in Clauses 4.3 and 4.4 of the Wagga Wagga Local Environmental Plan 2010, are appropriate having regard to the assessment requirements under Clause 4.6 of the plan.

3.    The application is compliant with the provisions of State Environmental Planning Policy (Housing) 2021 including the requirement for consideration against the design principles set out in Schedule 9 of this policy and also the relevant sections and objectives of the Apartment Design Guideline.

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

5.    The impacts of the proposed development, including its impact on the heritage conservation area, are acceptable subject to the inclusion of recommended conditions of consent.

6.    The site is considered suitable for the proposed development and is in the public interest.

 

Site Location

 

The site is identified as 115 Fitzmaurice Street. It is located on the eastern side of the street approximately 100 metres south of its intersection with Kincaid Street. The site also has frontage to Cadell Place to the rear.

 

The site is located within the heritage conservation area and is surrounded by commercial development to the north, south and west. The Murrumbidgee River and levee is located to the east of the site.

The site comprises 4 separated allotments with a combined area of 607.2 square metres. It is entirely occupied by an existing commercial building comprising 2 tenancies with shopfronts to Fitzmaurice Street and service access to Cadell Place.

 

 

N/A

State Environmental Planning Policy (Housing) 2021

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

 

Approval of the application is not considered to raise risk management issues for Council as the proposed development is consistent with SEPP (Housing) 2021, LEP and DCP controls.

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

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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)

Have your Say

Email newsletter

Social media

Website

Inform

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Consult

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Involve

Collaborate

Other methods (please list specific details below)

 

 

 

 

1.	DA23/0264 - Section 4.15 Assessment Report - Provided under separate cover
2.	DA23/0264 - Plans - Provided under separate cover
3.	DA23/0264 - Statement of Environmental Effects - Provided under separate cover
4.	DA23/0264 - Heritage Impact Statement - Provided under separate cover
5.	DA23/0264 - Heritage Advisor Comments/Advice - Provided under separate cover
6.	DA23/0264 - Submissions (Redacted) - Provided under separate cover

 

 

Report submitted to the Ordinary Meeting of Council on Monday 29 April 2024

RP-2

 

RP-2               FINANCIAL PERFORMANCE REPORT AS AT 31 MARCH 2024

Author:          Carolyn Rodney 

         

 

Summary:

This report is for Council to consider information presented on the 2023/24 budget and Long-Term Financial Plan, and details Council’s external investments and performance as at 31 March 2024.

 

 

Recommendation That Council: a       approve the proposed 2023/24 budget variations for the month ended 31 March 2024 and note the balanced budget position as presented in this report b       approve the proposed budget variations to the 2023/24 Long Term Financial Plan Capital Works Program including new projects and 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 31 March 2024 in accordance with section 625 of the Local Government Act 1993

 

Wagga Wagga City Council (Council) forecasts a balanced budget position as of 31 March 2024.

 

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 March when compared to budget ($440,925 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 higher than anticipated investment portfolio balance.

 

Key Performance Indicators

 

 

 

OPERATING INCOME

Total operating income is 79% of approved budget and is tracking ahead for the month of March 2024 mainly as a result of increased interest on investments income received this year.

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 94% when compared to budget.

 

OPERATING EXPENSES

Total operating expenditure is 74% of approved budget and is tracking on budget at this stage of the financial year.

 

CAPITAL INCOME

Total capital income is 61% 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.

 

CAPITAL EXPENDITURE

Total capital expenditure including commitments is 64% of approved budget including pending projects.  Excluding commitments, the total expenditure is 38% when compared to the approved budget.

 

WAGGA WAGGA CITY COUNCIL STATEMENT OF FINANCIAL PERFORMANCE 1 JULY 2023 TO 31 MARCH 2024
CONSOLIDATED STATEMENT
	ORIGINAL BUDGET 2023/24	BUDGET ADJ 2023/24	APPROVED BUDGET 2023/24	YTD ACTUAL   EXCL COMMT'S 2023/24	COMMT'S 2023/24	YTD ACTUAL + COMMT'S 2023/24	YTD % OF BUD
Revenue
Rates & Annual Charges	(79,700,947)	0	(79,700,947)	(59,357,975)	0	(59,357,975)	74%
User Charges & Fees	(32,607,964)	2,042,180	(30,565,784)	(23,644,530)	0	(23,644,530)	77%
Other Revenues	(3,040,358)	(89,000)	(3,129,358)	(4,471,363)	0	(4,471,363)	143%
Grants & Contributions provided for Operating Purposes	(13,891,687)	5,725,583	(8,166,104)	(4,944,786)	0	(4,944,786)	61%
Grants & Contributions provided for Capital Purposes	(43,630,578)	(6,390,828)	(50,021,405)	(31,801,238)	0	(31,801,238)	64%
Interest & Investment Revenue	(4,873,916)	0	(4,873,916)	(6,951,961)	0	(6,951,961)	143%
Other Income	(1,564,445)	(22,667)	(1,587,112)	(1,418,702)	0	(1,418,702)	89%
Total Revenue	(179,309,895)	1,265,269	(178,044,626)	(132,590,554)	0	(132,590,554)	74%
Expenses
Employee Benefits & On-Costs	56,172,711	525,510	56,698,221	38,149,862	0	38,149,862	67%
Borrowing Costs	3,363,314	0	3,363,314	2,814,341	0	2,814,341	84%
Materials & Services	41,316,274	15,917,496	57,233,769	36,192,708	9,087,575	45,280,283	79%
Depreciation & Amortisation	44,291,577	0	44,291,577	33,218,683	0	33,218,683	75%
Other Expenses	1,954,429	233,560	2,187,989	1,673,073	183,084	1,856,156	85%
Total Expenses	147,098,304	16,676,566	163,774,870	112,048,666	9,270,659	121,319,325	74%
Net Operating (Profit)/Loss	(32,211,591)	17,941,834	(14,269,756)	(20,541,888)	9,270,659	(11,271,229)
Net Operating Result Before Capital (Profit)/Loss	11,418,987	24,332,662	35,751,649	11,259,350	9,270,659	20,530,009
Cap/Reserve Movements
Capital Expenditure - One Off Confirmed	33,539,246	31,162,871	64,702,117	24,301,714	18,329,476	42,631,190	66%
Capital Expenditure - Recurrent	21,649,500	8,811,449	30,460,950	9,994,424	8,335,257	18,329,681	60%
Capital Expenditure - Pending Projects	38,732,266	(37,984,161)	748,105	30,816	15,100	45,916	0%
Loan Repayments	7,523,436	0	7,523,436	4,892,577	0	4,892,577	65%
New Loan Borrowings	(10,609,635)	7,043,364	(3,566,271)	0	0	0	0%
Sale of Assets	(1,490,575)	(2,317,180)	(3,807,755)	(854,626)	0	(854,626)	22%
Net Movements Reserves	(12,841,071)	(24,658,178)	(37,499,249)	0	0	0	0%
Total Cap/Res Movements	76,503,167	(17,941,834)	58,561,333	38,364,905	26,679,833	65,044,738
Net Result after Depreciation	44,291,577	0	44,291,577	17,823,018	35,950,492	53,773,509
Add back Depreciation Expense	44,291,577	0	44,291,577	33,218,683	0	33,218,683	75%
Cash Budget (Surplus)/Deficit	0	0	0	(15,395,665)	35,950,492	20,554,827

 

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

 

* Please note that Council is currently reviewing the 2024/25 Long Term Financial Plan, and will place the draft plan on public exhibition next month.  The above table includes the current adopted position.

 

 

 

 

 

 

 

 

2023/24 Revised Budget Result – (Surplus) / Deficit	$’000s
Original 2023/24 Budget Result as adopted by Council Total Budget Variations approved to date. Budget Variations for March 2024	$0K $0K $0K
Proposed Revised Budget result for 31 March 2024 - (Surplus) / Deficit	$0K

 

The proposed Operating and Capital Budget Variations for 31 March 2024 which affect the current 2023/24 financial year are listed below.

 

* As the 2024/25 draft Long Term Financial Plan (LTFP) budget is currently being finalised any budget variations that impact the LTFP will not be processed until 1 July 2024.

 

The following projects were included in the 2024/25 LTFP Councillor Budget Workshops and are being included below for adoption and inclusion in the 10 year Capital Works Program.

 

Project Title	2024/25	2025/26	2026/27	2027/28	2028/29	2029/30	2030/31	2031/32	2032/33	2033/34
Collingullie Augmentation of Sewer Treatment Ponds		1,000,000
Forest Hill Sewer Augmentation & Upgrade of Plant			10,000,000
Kooringal Sewer Treatment Plant Upgrade				30,000,000
Sewer Telemetry Hardware Upgrades (some exp may be incurred in 23/24)	1,000,000
Northern Sewer Rising Main Upgrade	500,000	2,500,000
Narrung Sewer Treatment Plant Shed Cover	100,000
Sewer Manhole Relining - Recurrent	800,000	824,000	848,720	874,182	900,407	927,419	955,242	983,899	1,013,416	1,043,819
Art Gallery Cabinetry Work	60,000
Regional Roads (replacement of grant funds from GPR)	350,000	350,000	350,000
Culverts – Renew & Replace (additional budget)	50,000	50,000	50,000	50,000	50,000	50,000	50,000	50,000	50,000	50,000
Pavement Rehab Program (used for Geotechnical budget)	(115,000)
TOTAL	2,745,000	4,724,000	11,248,720	30,924,182	950,407	977,419	1,005,242	1,033,899	1,063,416	1,093,819

 

2023/24 Capital Works Summary

 

Capital Works	Approved Budget	Proposed Movement	Proposed Budget
One-off	$64,702,117	$235,417	$64,937,534
Recurrent	$30,460,950	($20,000)	$30,440,950
Pending	$748,105	$0	$748,105
Total Capital Works	$95,911,172	$215,417	$96,126,589

 

 

 

Current Restrictions

 

 

RESERVES SUMMARY
31 MARCH 2023
	CLOSING BALANCE 2022/23	ADOPTED RESERVE TRANSFERS 2023/24	BUDGET VARIATIONS APPROVED UP TO COUNCIL MEETING 25.3.2024	PROPOSED CHANGES for Council Resolution*	BALANCE AS AT 31 MARCH 2023
Externally Restricted
Developer Contributions - Section 7.11	(33,518,693)	5,650,317	(2,060,173)	87,244	(29,841,305)
Developer Contributions - Section 7.12	(427,766)	(28,137)	0		(455,903)
Developer Contributions - Stormwater Section 64	(7,952,971)	461,121	(1,003,403)	31,000	(8,464,253)
Sewer Fund	(45,473,006)	(486,810)	(2,160,039)		(48,119,854)
Solid Waste	(28,001,560)	1,115,349	(935,606)		(27,821,816)
Specific Purpose Unexpended Grants & Contributions	(13,419,243)	0	13,419,243		0
SRV Levee Reserve	(6,316,594)	0	46,718		(6,269,877)
Stormwater Levy	(5,350,848)	3,299,121	(2,906,312)		(4,958,039)
Total Externally Restricted	(140,460,680)	10,010,962	4,400,428	118,244	(125,931,047)
Internally Restricted
Additional Special Variation (ASV)	(630,214)	(304,627)	0		(934,841)
Airport	0	0	0		0
Art Gallery	(3,804)	0	0		(3,804)
Bridge Replacement	(277,544)	0	40,739		(236,805)
Buildings	(1,816,155)	222,330	255,413	70,000	(1,268,412)
CCTV	(47,471)	12,476	0		(34,995)
Cemetery	(1,246,587)	(240,585)	30,437		(1,456,735)
Civic Theatre	(127)	0	0		(127)
Civil Infrastructure	(8,750,164)	1,975,590	623,233		(6,151,341)
Council Election	(305,964)	(117,566)	0		(423,531)
Economic Development	(407,131)	0	388,773		(18,358)
Emergency Events Reserve	(245,427)	(91,807)	50,000		(287,235)
Employee Leave Entitlements Gen Fund	(3,604,926)	0	0		(3,604,926)
Environmental Conservation	(116,578)	0	0		(116,578)
Event Attraction	(969,436)	0	728,755		(240,681)
Financial Assistance Grants in Advance	(12,361,442)	0	12,361,442		0
Grant Co-Funding	(500,000)	0	0		(500,000)
Gravel Pit Restoration	(807,726)	13,333	26,500		(767,892)
Information Services	(2,419,649)	906,761	92,772		(1,420,116)
Insurance Variations	(50,000)	0	0		(50,000)
Internal Loans	(6,215,667)	(768,775)	240,226	152,757	(6,591,460)
Lake Albert Improvements	(127,751)	38,377	50,000		(39,374)
Library	(166,718)	(155,915)	0		(322,633)
Livestock Marketing Centre	(6,581,531)	1,077,258	4,194,727		(1,309,546)
Museum Acquisitions	(54,612)	10,000	10,000		(34,612)

 

 

 

 

 

 

 

Investment Summary as at 31 March 2024

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 29/02/2024 $	Closing Balance Invested 31/03/2024 $	March EOM Current Yield %	March EOM % of Portfolio	Investment Date	Maturity Date	Term (months)
At Call Accounts
NAB	AA-	523,069	568,111	4.35%	0.25%	N/A	N/A	N/A
CBA	AA-	10,656,345	1,380,280	4.35%	0.61%	N/A	N/A	N/A
CBA	AA-	16,939,436	16,999,137	4.40%	7.47%	N/A	N/A	N/A
Macquarie Bank	A+	9,579,152	9,610,329	4.15%	4.23%	N/A	N/A	N/A
Total At Call Accounts		37,698,002	28,557,857	4.31%	12.56%
Short Term Deposits
AMP	BBB	1,000,000	1,000,000	5.40%	0.44%	15/11/2023	15/11/2024	12
Australian Military Bank	BBB+	1,000,000	1,000,000	5.06%	0.44%	24/05/2023	24/05/2024	12
Australian Unity	BBB+	1,000,000	1,000,000	5.44%	0.44%	8/06/2023	11/06/2024	12
ING Bank	A	2,000,000	2,000,000	5.62%	0.88%	26/06/2023	26/06/2024	12
ING Bank	A	2,000,000	2,000,000	5.65%	0.88%	30/06/2023	28/06/2024	12
Heritage and People's Choice	BBB+	1,000,000	1,000,000	5.80%	0.44%	10/07/2023	10/07/2024	12
CBA	AA-	2,000,000	2,000,000	5.27%	0.88%	31/08/2023	30/08/2024	12
Australian Unity	BBB+	1,000,000	1,000,000	5.49%	0.44%	27/11/2023	27/11/2024	12
Suncorp	A+	2,000,000	2,000,000	5.46%	0.88%	30/11/2023	29/11/2024	12
ING Bank	A	1,000,000	1,000,000	5.46%	0.44%	30/11/2023	29/11/2024	12
BankVic	BBB+	1,000,000	1,000,000	5.45%	0.44%	4/12/2023	4/12/2024	12
AMP	BBB	2,000,000	2,000,000	5.35%	0.88%	14/12/2023	16/12/2024	12
Australian Unity	BBB+	1,000,000	1,000,000	5.19%	0.44%	30/01/2024	30/01/2025	12
Suncorp	A+	0	1,000,000	5.12%	0.44%	7/03/2024	7/03/2025	12
Total Short Term Deposits		18,000,000	19,000,000	5.43%	8.35%
Medium Term Deposits
BOQ	BBB+	1,000,000	1,000,000	3.78%	0.44%	1/06/2022	3/06/2024	24
Westpac	AA-	2,000,000	2,000,000	1.32%	0.88%	28/06/2021	29/06/2026	60
Westpac	AA-	2,000,000	2,000,000	1.80%	0.88%	15/11/2021	17/11/2025	48
ICBC	A	2,000,000	2,000,000	2.03%	0.88%	6/11/2019	6/11/2024	60
ICBC	A	2,000,000	2,000,000	1.83%	0.88%	28/11/2019	28/11/2024	60
BOQ	BBB+	1,000,000	1,000,000	2.00%	0.44%	28/02/2020	28/02/2025	60
Police Credit Union	NR	1,000,000	1,000,000	2.20%	0.44%	1/04/2020	1/04/2025	60
ICBC	A	1,000,000	1,000,000	1.85%	0.44%	29/05/2020	29/05/2025	60
ICBC	A	1,000,000	1,000,000	1.86%	0.44%	1/06/2020	2/06/2025	60
ICBC	A	2,000,000	2,000,000	1.75%	0.88%	25/06/2020	25/06/2025	60
ICBC	A	2,000,000	2,000,000	1.75%	0.88%	25/06/2020	25/06/2025	60
ICBC	A	2,000,000	2,000,000	1.60%	0.88%	29/06/2020	28/06/2024	48
ICBC	A	3,000,000	3,000,000	5.07%	1.32%	30/06/2022	30/06/2027	60
ICBC	A	2,000,000	2,000,000	1.42%	0.88%	7/07/2020	8/07/2024	48
ICBC	A	2,000,000	2,000,000	1.50%	0.88%	17/08/2020	18/08/2025	60
BoQ	BBB+	1,000,000	1,000,000	1.25%	0.44%	7/09/2020	8/09/2025	60
BoQ	BBB+	2,000,000	2,000,000	1.25%	0.88%	14/09/2020	15/09/2025	60
NAB	AA-	1,000,000	1,000,000	5.23%	0.44%	14/09/2023	16/09/2024	12
ICBC	A	1,000,000	1,000,000	1.20%	0.44%	7/12/2020	8/12/2025	60
NAB	AA-	2,000,000	2,000,000	0.95%	0.88%	29/01/2021	29/01/2026	60
NAB	AA-	1,000,000	1,000,000	1.08%	0.44%	22/02/2021	20/02/2026	60
NAB	AA-	2,000,000	2,000,000	1.25%	0.88%	3/03/2021	2/03/2026	60
NAB	AA-	2,000,000	2,000,000	1.40%	0.88%	21/06/2021	19/06/2026	60
Westpac	AA-	2,000,000	2,000,000	1.32%	0.88%	25/06/2021	25/06/2026	60
ICBC	A	1,000,000	1,000,000	1.32%	0.44%	25/08/2021	25/08/2026	60
AMP	BBB	2,000,000	2,000,000	1.00%	0.88%	18/10/2021	17/10/2024	36
Westpac	AA-	2,000,000	2,000,000	1.56%	0.88%	30/11/2021	29/11/2024	36
Westpac	AA-	2,000,000	2,000,000	2.00%	0.88%	8/02/2022	10/02/2025	36
P&N Bank	BBB	2,000,000	2,000,000	2.40%	0.88%	9/03/2022	10/03/2025	36
P&N Bank	BBB	2,000,000	2,000,000	4.90%	0.88%	11/03/2024	11/03/2026	24
MyState	BBB	2,000,000	2,000,000	2.20%	0.88%	2/03/2022	3/03/2025	36
CBA	AA-	2,000,000	2,000,000	3.28%	0.88%	26/04/2022	26/04/2024	24
CBA	AA-	2,000,000	2,000,000	3.78%	0.88%	4/05/2022	6/05/2024	24
CBA	AA-	2,000,000	2,000,000	3.99%	0.88%	4/05/2022	5/05/2025	36
ING Bank	A	1,000,000	1,000,000	3.76%	0.44%	23/05/2022	23/05/2024	24
ICBC	A	2,000,000	2,000,000	3.95%	0.88%	6/06/2022	6/06/2024	24
Australian Unity	BBB+	2,000,000	2,000,000	4.15%	0.88%	8/06/2022	11/06/2024	24
MyState	BBB	2,000,000	2,000,000	4.45%	0.88%	29/06/2022	28/06/2024	24
BoQ	BBB+	1,000,000	1,000,000	4.50%	0.44%	7/07/2022	7/07/2025	36
CBA	AA-	1,000,000	1,000,000	4.25%	0.44%	12/08/2022	12/08/2025	36
P&N Bank	BBB	3,000,000	3,000,000	4.55%	1.32%	29/08/2022	29/08/2025	36
Australian Military Bank	BBB+	2,000,000	2,000,000	4.55%	0.88%	2/09/2022	2/09/2025	36
P&N Bank	BBB	1,000,000	1,000,000	4.40%	0.44%	9/09/2022	9/09/2025	36
BoQ	BBB+	1,000,000	1,000,000	4.70%	0.44%	4/10/2022	4/10/2024	24
AMP	BBB	2,000,000	2,000,000	4.95%	0.88%	21/10/2022	21/10/2024	24
ICBC	A	2,000,000	2,000,000	5.20%	0.88%	21/10/2022	21/10/2025	36
AMP	BBB	1,000,000	1,000,000	4.75%	0.44%	15/11/2022	14/11/2024	24
AMP	BBB	1,000,000	1,000,000	4.80%	0.44%	21/11/2022	20/11/2025	36
P&N Bank	BBB	2,000,000	2,000,000	4.75%	0.88%	16/12/2022	16/12/2024	24
Police Credit Union	NR	2,000,000	2,000,000	5.04%	0.88%	15/02/2023	17/02/2025	24
Police Credit Union	NR	2,000,000	2,000,000	4.94%	0.88%	14/03/2023	14/03/2025	24
P&N Bank	BBB	2,000,000	2,000,000	5.00%	0.88%	14/03/2023	15/03/2027	48
Hume Bank	BBB+	2,000,000	2,000,000	4.75%	0.88%	31/03/2023	31/03/2025	24
Auswide	BBB	2,000,000	2,000,000	4.95%	0.88%	13/04/2023	13/04/2026	36
P&N Bank	BBB	2,000,000	2,000,000	5.20%	0.88%	20/04/2023	20/04/2027	48
P&N Bank	BBB	1,000,000	1,000,000	5.20%	0.44%	26/05/2023	26/05/2026	36
ING Bank	A	2,000,000	2,000,000	5.37%	0.88%	21/08/2023	21/08/2025	24
P&N Bank	BBB	1,000,000	1,000,000	5.45%	0.44%	30/11/2023	28/11/2025	24
ING Bank	A	2,000,000	2,000,000	5.20%	0.88%	14/12/2023	15/12/2025	24
ING Bank	A	2,000,000	2,000,000	5.14%	0.88%	3/01/2024	5/01/2026	24
P&N Bank	BBB	2,000,000	2,000,000	5.10%	0.88%	4/01/2024	4/01/2027	36
Suncorp	A+	1,000,000	1,000,000	5.08%	0.44%	8/01/2024	8/01/2026	24
Australian Unity	BBB+	0	1,000,000	4.93%	0.44%	7/03/2024	9/03/2026	24
Total Medium Term Deposits		106,000,000	107,000,000	3.37%	47.05%
Floating Rate Notes - Senior Debt
Westpac	AA-	2,510,166	2,520,498	BBSW + 88	1.11%	16/05/2019	16/08/2024	63
Suncorp	A+	1,256,881	1,261,844	BBSW + 78	0.55%	30/07/2019	30/07/2024	60
ANZ	AA-	2,003,782	2,011,387	BBSW + 77	0.88%	29/08/2019	29/08/2024	60
HSBC	AA-	2,527,891	2,505,524	BBSW + 83	1.10%	27/09/2019	27/09/2024	60
ANZ	AA-	1,513,693	1,520,229	BBSW + 76	0.67%	16/01/2020	16/01/2025	60
NAB	AA-	2,016,949	2,025,732	BBSW + 77	0.89%	21/01/2020	21/01/2025	60
Newcastle Permanent	BBB	1,104,626	1,109,679	BBSW + 112	0.49%	4/02/2020	4/02/2025	60
Macquarie Bank	A+	2,010,512	2,018,997	BBSW + 84	0.89%	12/02/2020	12/02/2025	60
BOQ Covered	AAA	553,839	556,168	BBSW + 107	0.24%	14/05/2020	14/05/2025	60
UBS	A+	1,508,074	1,515,338	BBSW + 87	0.67%	30/07/2020	30/07/2025	60
CBA	AA-	2,011,215	2,020,746	BBSW + 70	0.89%	14/01/2022	14/01/2027	60
Rabobank	A+	2,003,179	2,013,217	BBSW + 73	0.89%	27/01/2022	27/01/2027	60
Newcastle Permanent	BBB	991,003	996,052	BBSW + 100	0.44%	10/02/2022	10/02/2027	60
NAB	AA-	2,399,863	2,411,474	BBSW + 72	1.06%	25/02/2022	25/02/2027	60
Bendigo-Adelaide	BBB+	1,671,456	1,657,247	BBSW + 98	0.73%	17/03/2022	17/03/2025	36
ANZ	AA-	2,017,084	2,028,374	BBSW + 97	0.89%	12/05/2022	12/05/2027	60
NAB	AA-	1,708,882	1,715,104	BBSW + 90	0.75%	30/05/2022	30/05/2025	36
Suncorp	A+	905,110	909,401	BBSW + 93	0.40%	22/08/2022	22/08/2025	36
ANZ	AA-	2,541,120	2,557,467	BBSW + 120	1.12%	4/11/2022	4/11/2027	60
NAB	AA-	2,533,522	2,551,660	BBSW + 120	1.12%	25/11/2022	25/11/2027	60
Suncorp	A+	1,124,897	1,116,124	BBSW + 125	0.49%	14/12/2022	14/12/2027	60
CBA	AA-	2,035,958	2,044,866	BBSW + 115	0.90%	13/01/2023	13/01/2028	60
Bank Australia	BBB	1,909,915	1,918,849	BBSW + 155	0.84%	22/02/2023	22/02/2027	48
Bendigo-Adelaide Covered	AAA	1,015,334	1,007,548	BBSW + 115	0.44%	16/06/2023	16/06/2028	60
CBA	AA-	2,512,356	2,522,110	BBSW + 95	1.11%	17/08/2023	17/08/2028	60
ANZ	AA-	2,129,778	2,111,313	BBSW + 93	0.93%	11/09/2023	11/09/2028	60
Bank Australia	BBB	1,661,338	1,668,898	BBSW + 150	0.73%	30/10/2023	30/10/2026	36
ANZ	AA-	2,514,641	2,522,292	BBSW + 96	1.11%	5/02/2024	5/02/2029	60
ANZ	AA-	0	1,001,643	BBSW + 98	0.44%	19/03/2024	19/03/2029	60
ING Bank	A	0	500,882	BBSW + 95	0.22%	22/03/2024	22/03/2027	36
Total Floating Rate Notes - Senior Debt		50,693,063	52,320,662		23.01%
Fixed Rate Bonds
ING Covered	AAA	686,703	691,613	1.10%	0.30%	19/08/2021	19/08/2026	60
Northern Territory Treasury	AA-	3,000,000	3,000,000	1.00%	1.32%	24/08/2021	16/12/2024	40
Northern Territory Treasury	AA-	3,000,000	3,000,000	1.50%	1.32%	24/08/2021	15/12/2026	64
BoQ	BBB+	1,768,348	1,780,828	2.10%	0.78%	27/10/2021	27/10/2026	60
Northern Territory Treasury	AA-	2,000,000	2,000,000	1.50%	0.88%	6/08/2021	15/12/2026	64
Northern Territory Treasury	AA-	1,000,000	1,000,000	1.50%	0.44%	14/07/2021	15/12/2026	65
Northern Territory Treasury	AA-	2,000,000	2,000,000	1.30%	0.88%	29/04/2021	15/06/2026	61
Northern Territory Treasury	AA-	2,000,000	2,000,000	1.00%	0.88%	30/11/2020	15/12/2025	60
Northern Territory Treasury	AA-	1,000,000	1,000,000	1.00%	0.44%	20/11/2020	15/12/2025	61
Northern Territory Treasury	AA-	2,000,000	2,000,000	1.00%	0.88%	21/10/2020	15/12/2025	62
Total Fixed Rate Bonds		18,455,051	18,472,441	1.30%	8.12%
Managed Funds
NSW Tcorp	NR	2,030,650	2,073,713	2.12%	0.91%	17/03/2014	1/03/2029	179
Total Managed Funds		2,030,650	2,073,713	2.12%	0.91%
TOTAL CASH ASSETS, CASH EQUIVALENTS & INVESTMENTS		232,876,765	227,424,673		100.00%
LESS: RIVERINA REGIONAL LIBRARY (RRL) CASH AT BANK		2,495,075	2,490,713
TOTAL WWCC CASH ASSETS, CASH EQUIVALENTS & INVESTMENTS		230,381,690	224,933,960

 

Council’s investment portfolio is dominated by Term Deposits, equating to approximately 55% of the portfolio across a broad range of counterparties. Cash equates to 13%, with Floating Rate Notes (FRNs) around 23%, fixed rate bonds around 8% 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 decreased over the past month, down from $230.38M to $224.93M.

 

 

Monthly Investment Movements

 

Redemptions/Sales – Council did not redeem any investment securities during March 2024.

 

New Investments – Council purchased the following investment securities during March 2024:

 

 

Rollovers – Council rolled over the following investment security during March 2024:

 

Monthly Investment Performance

 

Interest/growth/capital gains/(losses) for the month totalled $825,790, which compares favourably with the budget for the period of $384,865 - outperforming budget for the month by $440,925.

 

Council’s outperformance to budget for March is mainly due to better than budgeted returns on Councils investment portfolio as well as a higher than anticipated investment portfolio balance. 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 November 2023 bringing the cash rate to 4.35% from a record low of 0.10% in April 2022.

 

Council experienced a positive return on its NSW T-Corp Managed Fund for the month of March, with the fund returning +2.12% (or +$43,063) as domestic (+3.27%) and international (+3.03%) shares continued to rally throughout the month.

 

 

In comparison to the AusBond Bank Bill Index* of 4.41% (annualised), Council’s investment portfolio returned 4.08% (annualised) for the month of March. This underperformance against the benchmark for the month is mainly due to lower returns on fixed deposits and bonds due to a proportion of these being locked in prior to the unexpected RBA rate hikes, as well as aggressive increases in the AusBond Bank Bill index due to the current interest rate environment. On Cash and At‑Call accounts returned 4.35% (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 3.73%, marginally underperforming the AusBond Bank Bill index by -0.46%. Councils investment portfolio has continued to outperform the AusBond Bank Bill Index* over the longer-term time period, returning 2.48% per annum over the past 3 years – outperforming the benchmark by 0.41% over this time.

 

* 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.

 

 

 

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Capital Works Program 2023/24 to 2032/33