Agenda and
Business Paper

 

Ordinary Meeting of Council

 

 

 

To be held on
Monday 28 October 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

 

Councillor Dallas Tout                    Councillor Georgie Davies

Mayor                                                Deputy Mayor

Councillor Allana Condron             Councillor Richard Foley

Councillor Tim Koschel                  Councillor Jenny McKinnon       

Councillor Amelia Parkins             Councillor Karissa Subedi

Councillor Lindsay Tanner

 

 

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 28 October 2024

ORDER OF BUSINESS:

CLAUSE               PRECIS                                                                                       PAGE

ACKNOWLEDGEMENT OF COUNTRY                                                                          2

REFLECTION                                                                                                                2

APOLOGIES                                                                                                                 2

Confirmation of Minutes

CM-1           ORDINARY COUNCIL MEETING - 14 OCTOBER 2024                                2

DECLARATIONS OF INTEREST                                                                                    2

Motions Of Which Due Notice Has Been Given

NOM-1         NOTICE OF MOTION - ON-SITE SEWAGE MANAGEMENT PLAN              3

NOM-2         NOTICE OF MOTION - Forest Hill Community Hall                          5

NOM-3         NOTICE OF MOTION - RECONNECTING RIVERS COUNTRY PROGRAM   7

Reports from Staff

RP-1            2023/24 Annual Financial Statements                                           10

RP-2            COUNCIL COMMITTEE STRUCTURE                                                     127

RP-3            FINANCIAL PERFORMANCE REPORT AS AT 30 SEPTEMBER 2024     137

RP-4            APPLICATIONS FOR SUBSIDY FOR WASTE DISPOSAL FOR CHARITY ORGANISATIONS                                                                                  167

RP-5            INTEGRATED PLANNING AND REPORTING (IP&R) - STATE OF THE CITY REPORT  170

RP-6            QUESTIONS WITH NOTICE                                                                    172    

Confidential Reports

CONF-1       RECREATION FACILITY MANAGEMENT                                               176

CONF-2       Riverina Intermodal Freight and Logistics Hub - Update    177

 

 

 

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 - 14 OCTOBER 2024       

 

Recommendation That the Minutes of the proceedings of the Ordinary Council Meeting held on 14 October 2024 be confirmed as a true and accurate record.

 

 

 

1⇩.

Minutes - 14 October 2024

178

 

 

DECLARATIONS OF INTEREST

Report submitted to the Ordinary Meeting of Council on Monday 28 October 2024

NOM-1

 

Motions Of Which Due Notice Has Been Given

NOM-1           NOTICE OF MOTION - ON-SITE SEWAGE MANAGEMENT PLAN

Author:          Councillor Tim Koschel

 

 

Summary:

The purpose of this notice of motion is to seek a report outlining how this term of Council can review the On-Site Sewage Management Plan 2024-2028 (OSMP) recently adopted by the last term of Council.

 

 

That Council receive a report on how this term of Council can review the On-Site Sewage Management Plan 2024-2028, including but not limited to:

a       what community engagement was completed when it was placed on public exhibition

b       was any direct consultation done with landholders over 20 hectares

c        the impact to Council by not inspecting On-site Sewage Management Systems on properties over 20 hectares during the period from the Council resolution in 2014 until the recent change in 2024

d       the process of reinstating the resolution of council in 2014

I have recently been contacted by numerous landholders with changes to the On-Site Sewage Management Plan 2024-2028 (OSMP). One of the biggest changes was the overturning of a unanimous resolution of council in 2014 to reinstate inspections to land holders over 20 hectares.

 

Council at the 16 June 2014 Supplementary Council meeting resolved:

 

That Council:

a       receive and note the report

b       include the following provisions in the draft On-site Sewage Management Plan 2014 - 2018:

(i)      All OSSM systems on farmland with an area of 20 Hectares or greater be exempt from inspection, licensing and compliance action unless council receives a complaint relating to the OSSM

(ii)     Conduct an education campaign to advise owners of OSSM systems located on farmland with an area of 20 Hectares or greater of their responsibilities and possible liability due to a substandard OSSM

(iii)    Maintain a register of all OSSM systems

(iv)    The minimum requirement for the absorption field is to be 75 square metres unless otherwise certified by a geotechnical soil report

(v)     Allow owners of farmland with an area of 20 hectares or greater to construct an OSSM system and then have it inspected by Council staff or a licensed plumber for endorsement

c        advise any OSSM owners who are the subject of compliance action and occupy farmland with an area of 20 Hectares or greater that no enforcement action will be taken by council to require compliance unless a complaint relating to their system is received

d       place the draft On-site Sewage Management Plan 2014-2018 on public exhibition for a period of 28 days and invite public submissions

e       receive a further report following the public exhibition period

(i)      Addressing any submissions made in respect of the proposed plan

(ii)     Proposing any amendments to the plan considered appropriate whether as a result of the submissions or otherwise.

This position was subsequently endorsed at the September 2014 Policy & Strategy and Council Meetings.

 

Agricultural is one of biggest industries and the change in the OSMP is adding additional costs and stress to landholders.

 

Landholders have stressed their concerns in the lack in consultation during the public exhibition period in which no submissions were received. If landholders were aware of the public exhibition period multiple submissions would have been received to express their concerns.

 

I am calling for this term of council to be able to review the OSMP again with greater transparency to landholders that this will directly impact.

There are no financial implications relating to receiving this report.

Wagga Wagga City Council Code of Meeting Practice

 

Community leadership and collaboration

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

Our leaders represent our community

 

 

 

Report submitted to the Ordinary Meeting of Council on Monday 28 October 2024

NOM-2

 

NOM-2           NOTICE OF MOTION - Forest Hill Community Hall

Author:          Councillor Tim Koschel

 

Summary:

To start the process of constructing a Community Hall in Forest Hill.

 

 

That Council receive a report on the progress of constructing a Community Hall in Forest Hill, including but not limited to:

a       plans (if any) that are currently in place to construct a community hall

b       if plans haven't started, how do we start the process of replacing the community space that was demolished

I was contacted by a community member during the recent election campaign. The community member shared information with myself about the lack of Community Hall facilities in the Forest Hill area.

 

At the request of the Forest Hill Tennis Club Council took ownership of the Forest Hill Tennis Courts.  This included a clubhouse that was demolished and not replaced.  These club rooms had been used by the community as a meeting space and the community have since been using the fire shed which is not ideal. Forest Hill is a major growing suburb within our LGA and doesn't have the same facilities as all our suburbs and villages. Residents have been liaising with internal staff members since 2022 on a Community Hall and improving other facilities with no outcome. A Community Hall at Forest Hill will help grow community engagement, improve isolation issues and be a meeting place for Forest Hill organisations.

 

There are no financial implications in preparing this report.

Wagga Wagga Code of Meeting Practice

 

Community leadership and collaboration

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

Our leaders represent our community

 

 

Report submitted to the Ordinary Meeting of Council on Monday 28 October 2024

NOM-3

 

NOM-3           NOTICE OF MOTION - RECONNECTING RIVERS COUNTRY PROGRAM

Author:          Councillor Tim Koschel

    

 

Summary:

Notice of Motion submitted by Councillor Tim Koschel.

 

 

That Council receive a report on the Reconnecting River Country Program that includes the possibility of actioning the below:

a       Write to the NSW Minister for Water, Housing and Homelessness the Hon Rose Jackson MLC, requesting an immediate halt in the Reconnecting River Country Program.

b       Request a complete list of where proposed consultation for the Landholder Negotiation Scheme was advertised.

c        Request an in person update and workshop on what this Reconnecting Rivers Country Program involves and the effects on our Local Government Area (LGA) and our residents.

d       Provide written support for effected landholders opposing compulsory easements for the purpose of creating water delivery corridors over privately and Council held lands along the Murrumbidgee River system.

e       Write to all other Councils seeking feedback and support of our situation in this matter.

f        Apply to submit an urgency late motion to the LGNSW Conference on this matter for consideration.

g       Write to the Shadow Minister for Water Steph Cooke MP, requesting her knowledge and position on this issue.

The Reconnecting Rivers Country Program (RRCP) is an initiative introduced at the state level by the previous Coalition government in 2018/2019 to attempt to force more water from dam reserves to the lower lakes and the Coorong. This program has been continued under the current NSW Labor Government, so it has been endorsed across all political party lines.

 

To facilitate such a concept, it was deemed necessary to push water outside the natural river course and conduct what is deemed ‘overbank flows.’ In real terms, this is actually a man-made flood that will inundate vast tracts of private freehold land, along with large sections of Local Government held and controlled land and infrastructure.

 

Being a Local Government Area (LGA) that has more than 200 km of river frontage (multiplied by two sides of the river), this concept severely impacts hundreds of ratepayers of our LGA, plus an unidentified area of our own. Our river dwellers are predominantly high productivity operations and have an economic benefit to our LGA measured at over $100 million annually. The Murrumbidgee River itself contributes over $5 billion annually.

 

This economic driver to our local, and broader NSW economy is at risk under the proposed program (RRCP). While being driven by the Federal Government as NSW's response to water offsets under the Murray Darling Basin Plan (MDBP), it should therefore be required to meet the triple bottom line, which is set down as a requirement under the MDBP.

 

The triple bottom line states that all programs must support and not hinder or impede social, economic, or environmental outcomes. Unfortunately, under the latest phase of the RRCP, being the Landholder Negotiation Scheme (LNS), the relevant departments managing the RRP have completely failed on many levels, particularly regarding the triple bottom line requirement.

 

The program is required to consult with all landholders and present a business case to the Federal departments and therefore the government of the day. Under this scheme, the Government and relevant departments engaged the services of Local Land Services (LLS) to engage with landholders and collect data to assess the effects on all landholders that would be affected by such a proposal of running the Murrumbidgee River at 4,000 ml/day ± 5,000 ml (as measured at Wagga gauge), on numerous occasions and on an annual basis. We are unable to provide a specific flow regime as this is a variable in the program, therefore making accurate assessments impossible.

 

This consultation program has not met the requirements due to a lack of proper engagement, advertising, plus a lack of informing of the affected landholders. Further to this, it is now proposed that forced easements under compulsory acquisition be imposed on all landholders if they do not participate in a program that no one knew about. Again, even Local Government was uninformed of these compulsory acquisitions.

 

The economic effects will be devastating to the agricultural sector and therefore to the greater economy of the associated towns and cities, such as our own. In economic terms, it is estimated that for every dollar produced in agricultural productivity, the associated economy experiences a seven-fold multiplier effect. Therefore, referring to the economic productivity of our greater region, this would have a negative effect of $700 million.

 

In reference to the social impacts, the proposed forced easements fail based on lost social cohesion, and the fabric of our local society is shattered through loss of land and businesses. Mental health issues and the increasing level of suicide in our agricultural space are due to the loss of freehold land and the right to farm.

 

Lastly, on an environmental factor, again the plan fails. They are, in essence, killing the river precinct to prop up small areas that do not need intervention because it does not factor in natural flooding events that water the other billabongs and lower lakes areas. The loss of ancient red gums, bank slumping, underscoring, and gouging of the riverbanks the entire length of the river system is not even measured or considered in this plan. There are no measurables or studies that have been undertaken on these effects.

 

The landholders that dwell along our rivers are true stewards of our river systems. They care for and look after the lands, and yet they are the very people that have been unfairly (to date) wrongly forced to endure this attack on their rights due to a lack of proper process, and consideration as to the greater effects on everyone.

 

This report is a snapshot of what is taking place in our own area. I urge all councillors to support the motion as presented, support stopping this program, and request that a program be designed that engages all stakeholders, including Local Government, plus say no to forced easements across vast tracts of freehold agricultural lands.

 

N/A

Code of Meeting Practice

 

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 28 October 2024

RP-1

 

Reports from Staff

RP-1               2023/24 Annual Financial Statements

Author:         Zachary Wilson 

Executive:    Carolyn Rodney

         

 

Summary:

The 2023/24 financial statements have been completed by Council staff and have recently been audited by the NSW Audit Office.

 

 

That Council:

a       note the resolution from the Audit, Risk & Improvement Committee meeting held on 17 October 2024 regarding the 2023/24 Financial Statements

b       approve the signing of the 2023/24 Financial Statements pursuant to Section 413 (2)(c) of the Local Government Act 1993 and the Local Government Code of Accounting Practice and Financial Reporting

c        approve the closing balances of the Internal Allocations (Reserves) as at 30 June 2024 as detailed in Note C1-3 – Restricted and allocated cash, cash equivalents and investments

d       receive a report on the audited financial reports and auditors report at the 18 November 2024 Council Meeting, pursuant to Section 418(1) of the Local Government Act 1993 and provide public notice accordingly

 

The 2023/24 Annual Financial Statements have been prepared and Council’s external auditors, NSW Audit Office, have commenced the final audit. It is a requirement of the Local Government Act 1993 that Council prepare a statement on the General Purpose and Special Purpose Financial Reports prior to sign off by the auditor. These statements must be signed by the Mayor, one Councillor, the General Manager and the Responsible Accounting Officer.

 

This statement is required to be signed and included in the Financial Statements prior to the auditor providing the final audit reports. The Financial Statements together with the auditors’ reports must be forwarded to the Office of Local Government (OLG) by 31 October 2024.

 

The 2023/24 financial statements were presented to the Audit, Risk & Improvement Committee (ARIC) at its meeting on 17 October 2024. Council’s Financial Statements are to be reviewed by the Committee prior to presentation and sign off by Council. In relation to this, the Committee’s role under the ARIC Charter notes that the Committee responsibilities include to:

 

·    Satisfy itself that the annual financial reports comply with applicable Australian Accounting Standards and are supported by appropriate management signoff on the statements and the adequacy of internal controls

·    Review the external audit opinion, including whether appropriate actions have been taken in response to audit recommendations and adjustments

·    To consider contentious financial reporting matters in conjunction with Council’s management and external auditors

·    Review the processes in place designed to ensure financial information included in the annual report is consistent with the signed financial statements

·    Satisfy itself that there are appropriate mechanisms in place to review and implement, where appropriate, relevant State Government reports and recommendations

·    Satisfy itself that there is a performance management framework linked to organisational objectives and recommendations

 

During the ARIC Meeting, the Committee resolved the following:

 

That the Audit, Risk and Improvement Committee:

a       receive a presentation from Council’s auditors, the NSW Audit Office

b       note that the NSW Audit Office is expecting to express an unmodified audit opinion for the 2023/24 General Purpose Financial Statements due to the value of the non-recognition of Rural Fire Service (RFS) assets being not material to the financial statements

c        recommend that Council approve the signing of the 2023/24 Financial Statements pursuant to Section 413(2)(c) of the Local Government Act 1993 and the Local Government Code of Accounting Practice and Financial Reporting

 

The NSW Audit Office have advised Council that they will be expecting to express an Unmodified Audit Opinion on the Councils 2023/24 General Purpose Financial Statements (GPFS). For 2023/24, the NSW Audit Office performed an alternative audit procedure to verify that the value of the Rural Fire Service (RFS) assets was not material to Councils financial statements, and as a result of these procedures the Audit Office has concluded that the impact of these assets (that Council has not included in its financial statements) is not significant to Councils overall financial statements.

 

2023/24 Financial Overview

 

The 2023/24 draft financial statements show total income from continuing operations of $194.81M, total expenses from continuing operations of $197.48M, resulting in a preliminary net operating deficit of $2.67M (including capital grants and contributions), a decrease on the net operating surplus of $41.09M recognised in 2022/23. For the 2023/24 financial year, Council recognised a net operating deficit before capital grants and contributions of $51.99M, a significant decrease from the 2022/23 deficit of $6.07M recognised. This significant movement is mainly attributable to the following:

 

·    increase in depreciation expense for its roads and associated assets for 2023/24 – up from $12.57M to $19.29M – as a result of the comprehensive revaluation undertaken as at 30 June 2023.

·    increase in net loss from disposal of assets – up from $8.72M to $45.39M – which is mainly attributable to a write-off of costs associated with construction costs of non-council owned assets as part of the Riverina Intermodal Freight and Logistics (RiFL) precinct works.

 

 

Extract from the draft 2032/24 Financial Statements – Income Statement:

 

 

For the 2023/24 financial year, Council met five (5) of the six (6) performance indicators outlined within the Financial Statements, with the Operating performance ratio (>0%) not being met. This ratio measures Council’s achievement of containing operating expenditure within operating revenue. 

 

As noted in the financial statements Note H1-1, and shown below:

 

“Council’s operating performance ratio has decreased from 1.43% in 2022/23 to -4.63% in 20234.  This decrease is mainly a result of Council receiving one-off payments for operating grants during 2022/23, as well as Council’s advanced financial assistance grant payment reducing from 100% to 85% for the 2023/24 and 2024/25 advanced payments made”.

 

Below is an extract of the performance indicators from the draft 2023/24 financial statements.

 

 

Extract from the draft 2023/24 Financial Statements – Statement of performance measures:

 

 

 

 

As at 30 June 2024, Council held $78.3M in internal reserves, an increase of $12.0M on the previous year. The major internally restricted reserves Council holds are:

 

Reserve Name	30 June 2024 Balance	30 June 2023 Balance	Increase/ (Decrease) from prior year
Civil Infrastructure	$11.521M	$8.750M	$2.771M
Financial Assistance Grants in advance	$10.947M	$12.361M	($1.414M)
Buildings	$3.387M	$1.816M	$1.571M
Plant	$6.383M	$4.023M	$2.360M
Internal Loans	$7.842M	$6.216M	$1.626M
Livestock Marketing Centre	$8.324M	$6.582M	$1.742M
Project Carryovers	$8.549M	$6.990M	$1.559M

 

Whilst this report and associated attachments show Council’s financial performance and position for the 2023/24 financial year, the adoption of this report by the Committee has no financial implications.

Local Government Act 1993

Sections:   413 - Preparation of Financial Reports

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

Community leadership and collaboration

Objective: Wagga Wagga City Council leads through engaged civic governance and is recognised and distinguished by its ethical decision-making, efficient management, innovation and quality customer service

Ensure transparency and accountability

 

The NSW Audit Office has previously supplied Council with an interim management letter, which was discussed at the 15 August 2024 Audit, Risk & Improvement Committee Meeting. The interim management letter identified three (3) issues with two (2) rated as moderate risk and one (1) rated as low risk. Council officers will undertake the actions identified in the Management Responses.

Council’s external auditors, NSW Audit Office, have liaised with Council’s Finance division, along with presenting the draft financial statements to the Audit, Risk and Improvement Committee on 17 October 2024.

 

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)

Have your Say

Email newsletter

Social media

Website

Inform

Consult

X

X

Involve

Collaborate

Other methods (please list specific details below)

 

 

 

1⇩.	2023/24 Draft Annual Financial Statements
2⇩.	2023/24 Statement by Councillors and Management - General Purpose Financial Statements
3⇩.	2023/24 Statement by Councillors and Management - Special Purpose Financial Statements

 

 

Report submitted to the Ordinary Meeting of Council on Monday 28 October 2024

RP-1

 

Report submitted to the Ordinary Meeting of Council on Monday 28 October 2024

RP-1

 

Report submitted to the Ordinary Meeting of Council on Monday 28 October 2024

RP-1

 

Report submitted to the Ordinary Meeting of Council on Monday 28 October 2024

RP-2

 

RP-2               COUNCIL COMMITTEE STRUCTURE

Author:         Scott Gray 

         

 

Summary:

To establish Council’s committee structure, appoint Councillors to relevant Committees and Panels and call for expressions of interest from industry and community representatives to join identified committees and panels. Councillors were consulted regarding representation on committees at an induction day held on 9 October 2024 and a Councillor Workshop on 21 October 2024.

 

 

Recommendation That Council: a       approve the formation of the following committees: i         Audit, Risk and Improvement Committee ·      Appoint non-voting member - Councillor L Tanner ·      Appoint alternate non-voting member - Councillor A Parkins ·      Call for Expressions of Interest for at least three (3) independent external members with experience in audit, financial management, business management or law ii        Australia Day Community Committee ·      Appoint the Mayor as a member ·      Appoint member - Councillor L Tanner ·      Appoint alternate member - Councillor K Subedi ·      Call for Expressions of Interest for six (6) community members iii       Floodplain Risk Management Committee ·      Appoint members - Councillors J McKinnon, L Tanner and D Tout ·      Call for Expressions of Interest for four (4) independent community members iv      General Manager’s Performance Review Committee (Mayor, Deputy Mayor and three Councillors) ·      Appoint the Mayor and Deputy Mayor as members ·      Appoint members – Councillors R Foley, J McKinnon and A Parkins v       Honours Committee ·     Appoint all Councillors vi      Local Traffic Committee ·      Appoint member - Councillor R Foley vii     Annual Grants and Economic Development Panel ·     Appoint all Councillors noting specific categories will be allocated to Councillors viii    Major Events, Festivals and Films Sponsorship Advisory Panel ·     Call for Expressions of Interest for three (3) industry representatives ix      Museum of the Riverina Community Committee ·     Call for Expressions of Interest for four (4) community members x       Public Art Panel ·    Appoint members – Councillor G Davies and J McKinnon ·    Call for Expressions of Interest for one (1) industry representatives ·    Call for Expressions of Interest for two (2) community members xi      Sporting Hall of Fame Panel ·    Appoint member – Councillor G Davies ·    Call for Expressions of Interest for two (2) community members b       provide representation on the following external organisations and committees as indicated: i         Bushfire Management Committee ·      Appoint representative – Councillor A Parkins ·      Appoint alternate representative – Councillor G Davies ii        Inland Rail – Albury to Illabo Project Community Committee ·      Appoint representative - Councillor R Foley iii       Murray Darling  Association ·    Appoint representative - Councillor R Foley iv      NSW Public Libraries ·    Appoint representatives - Councillors A Parkins and D Tout v       Riverina Conservatorium of Music ·    Appoint representative - Councillor A Parkins vi      Southern Regional Planning Panel ·    Appoint members J McKinnon and A Parkins (expires 28 October 2027) ·    Appoint alternate members – Councillors L Tanner and D Tout (expires 28 October 2027) vii     Transgrid Humelink Community Consultative Committee ·    Appoint representative - Councillor T Koschel c       note that the Mayor and/or the General Manager are, by constitution or resolution, members of: i         Country Mayor Country Mayor’s Association (Mayor and General Manager) ii        Canberra Region Joint Organisation (Mayor and General Manager) iii       Riverina and Murray Joint Organisation (Mayor and General Manager) iv      Regional Capitals Australia (Mayor and General Manager) v       Riverina Regional Cities (Mayor and General Manager) vi      Murrumbidgee Health and Knowledge Precinct Board (General Manager and Executive Manager, Regional Activation – Projects) d       discontinue the Airport Advisory and the Sister City Community Committees e       approve the formation of a Sister City Working Group ·     Call for Expressions of Interest from community members

 

Council has the ability to determine its own committee structure as it deems appropriate. All Committees are created via a resolution made under s355 of the Local Government Act 1993 (the Act). It is important to note that a council is not obliged to create committees and is not restricted in the number of committees it creates.

 

Council’s proposed Committee structure consists of:

·    Advisory Committees

·    Panels and Working Groups

·    External Committees

·    Mayor/General Manager representation on Associations and External Organisations

The above structure establishes a framework to provide varying methods for individuals and groups to provide input, feedback and advice to council via a mechanism of community consultation. Council Advisory Committees provide information and advice to Council on matters either referred to them by Council or matters with which they were specifically set up to review.

 

These committees have the power to make recommendations to Council, but do not have any powers to make decisions. Ideally, Advisory Committees should complement and assist Council to make informed decisions to achieve its strategic goals.

 

Council has in place an Appointment of Organisation, Community and Individual Citizen Members to Council Committees Policy (POL 117).  This policy sets out the process Council adopts in calling for membership to its Committees through an Expressions of Interest process. 

 

It is recommended that Council, call for expressions of interest for identified members of the below committees / panels / groups to allow industry and community members to provide input and advice to support Councillors in making informed decisions.

 

Each Committee also have Governing Terms (Charter, Terms of Reference or Constitution) which is adopted by the committee. The Governing Terms set out the purpose, objectives and operational support, function, role, membership and meeting process. All Committee members are governed by Council’s Code of Conduct and generally the Code of Meeting Practice. The Code of Meeting Practice has been applied in varying degrees dependent upon the nature of the Committee.

 

The table below provides a description of each committee / panel, proposed Councillor and external membership.

 

Committee	Function	Nominated Councillor Member	External Membership for Expression of Interest
Advisory / Technical Committees
Audit, Risk & Improvement Committee (ARIC)   ARIC Charter	To provide independent assurance and assistance to Council on risk management, control, governance, and external accountability responsibilities.	Councillor L Tanner   Councillor A Parkins (Alternate)	Minimum of three independent external members with experience in audit, financial management, business management or law.
Australia Day Community Committee   Terms of Reference	To assist in the planning, organising and delivery of the Australia Day celebrations for the Wagga Wagga Local Government Area.	The Mayor    Councillor L Tanner  Councillor K Subedi (Alternate)	Six (6) community members
Floodplain Risk Management Committee   Terms of Reference	To provide advice to Council on the development, implementation and delivery of actions contained in the Floodplain Risk Management Plan for the Wagga Wagga Local Government Area.	Councillor J McKinnon  Councillor D Tout  Councillor L Tanner	Four (4) community members
General Managers Performance Review Committee   OLG - Guidelines for the Appointment and Oversight of General Managers	Undertakes the review of the General Manager’s performance, to monitor progress and achievement of the identified outcomes and provide recommendations to Council.	The Mayor  The Deputy Mayor    Councillor R Foley  Councillor J McKinnon  Councillor A Parkins	N/A
Honours Committee	Consider and make recommendations to Council relating to City honours being bestowed on a person or group.	All Councillors	N/A
Local Traffic Committee A Guide to the Delegation to Councils for the Regulation of Traffic – Transport for NSW	Technical review committee that is required to advise and make recommendations to the Council on matters for which Council must relate to prescribed traffic control devices and traffic control facilities.	Councillor R Foley	N/A
Panels, Community Committee and Working Groups
Annual Grants and Economic Development Panel	To assess and recommend to Council for distribution of small grants to the community to deliver a range of community capacity and infrastructure projects, which meet advertised criteria across 10 categories. To assess and recommend to Council for distribution of Economic Development Grant.	All Councillors With categories allocated to individual Councillors prior to commencement of assessment	Independent industry representatives
Major Events, Festivals and Films Sponsorship Advisory Panel	The Panel’s role is to appraise and make recommendations for the allocation of funding requests received through Wagga Wagga City Council’s Major Events, Festivals and Films Sponsorship Funding. The Panel assesses requests based on the eligibility and assessment criteria outlined in the Major Events, Festivals and Films Sponsorship Guidelines. The Panel reports recommendations back to Council for endorsement.	N/A	Three Industry representatives
Museum of the Riverina Community Committee	The Museum of the Riverina Botanic Gardens site is under a Lease arrangement between the Lessor Wagga Wagga and District Historical Society Inc. and Lessee Wagga Wagga City Council for the establishment and operation of the Museum of the Riverina.	N/A	Four (4) Historical Society members Four (4) Community members
Public Art Panel   Terms of Reference	The Public Art Panel has been established in accordance with Council’s adopted Public Art Policy, to guide the commissioning of public art and management of the Public Art Collection in line with the Public Art Policy and Public Art Plan.	Councillor G Davies  Councillor J McKinnon	One Industry representative Two Community representatives
Sister City Working Group	The primary purpose of the Sister City Working Group is to assist the Mayor’s office plan and host Sister City exchanges in an inclusive consultative process with the community, Councillors and stakeholders.	The Mayor  Councillor G Davies  Councillor R Foley  Councillor J McKinnon  Councillor K Subedi  Councillor L Tanner	The Working Group will include a mix of Councillors and community members and is to not exceed 15 members.
Sporting Hall of Fame Panel	The Sporting Hall of Fame Panel has been established as a selection panel of applicants to the annual nominations for induction to the Sporting Hall of Fame.	Councillor G Davies	Two (2) Community representatives
External Organisation Committees
Bushfire Management Committee   Part 3 of the Rural Fires Regulation 2022	Forum for cooperative and coordinated bushfire management in a local area.	Councillor A Parkins Councillor G Davies (Alternate)	N/A
Inland Rail – Albury to Illabo Project Community Committee	Forum for discussion between the proponent (ARTC) and representatives of the community, stakeholder groups and local councils on issues directly relating to the project.	Councillor R Foley	N/A
Murray Darling	To provide effective representation of local government and communities at state and federal level in the management of Basin resources by providing information, facilitating debate and informing government policy.	Councillor R Foley	N/A
NSW Public Libraries Association	To advocate effectively, initiate partnerships, champion the public library cause, build trust and support, provide relevant information, foster cooperation and collaboration and strengthen the public library network.	Councillor A Parkins Councillor D Tout	N/A
Riverina Conservatorium of Music	Provides oversight of the Conservatorium and development, implementation and monitoring of policies and is accountable for these to statutory bodies and government agencies.	Councillor A Parkins Councillor G Davies (Alternate)	N/A
Southern Regional Planning Panel	To determine regionally significant Development Applications and undertake rezoning reviews. At least one council member must have expertise in one or more of the following areas: planning, architecture, heritage, the environment, urban design, land economics, traffic and transport, law, engineering or tourism.	Councillor A Parkins Councillor J McKinnon Councillor L Tanner (Alternate) Councillor D Tout (Alternate)	N/A
Transgrid Humelink Community Consultative Committee	To provide valuable feedback to Transgrid and the Humelink team on all aspects of the project.	Councillor T Koschel	N/A

 

Miscellaneous membership by constitution, resolution or agreement

 

Further, the Council is also represented on the following committees and bodies, by the Mayor and/or General Manager, by constitution, resolution or agreement:

 

·       Country Mayor’s Association (Mayor and General Manager)

·       Canberra Region Joint Organisation (Mayor and General Manager)

·       Riverina and Murray Joint Organisation (RAMJO) (Mayor and General Manager)

·       Regional Capitals Australia (Mayor and General Manager)

·       Riverina Regional Cities (Mayor and General Manager)

·       Murrumbidgee Health and Knowledge Precinct Board (General Manager and Executive Manager Regional Activation – Projects)

 

The previous Council adopted the Airport Advisory Committee and the Sister City Community Committee in the structure, however both committees were not active in the last term of Council. Therefore, it is recommended that Council discontinue those committees in their current form. It is recommended that Council replace the Sister City Community Committee with a less formal working group that includes Councillors and members of the community selected through an EOI process.

 

N/A

Code of Meeting Practice

Appointment of Organisation Community and Individual Citizen Members to Council Committees Policy (POL 117)

 

Community Leadership and Collaboration

Objective: We are informed and involved in decision making

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

 

The identification of emerging risks as relevant to each particular Committee is of increasing importance given the diversity of Council’s operations and challenges in the respective operating environments. Ensuring the Committee has Governing Terms and a membership composition which supports the intent of the Committee is important in ensuring effective Risk Management across the respective subject areas and the provision of advice to Council to support its Corporate Risk Management activities.

 

Feedback on Council’s current committee structure has been gathered from Committee Members, Councillors and staff. Committee members were also asked to provide any suggestions on improvements that could be made to the development and facilitation of Council committees.

 

All Councillors participated in a workshop on Council’s Committee Structure as part of their induction program.

 

Expressions of Interest for independent / community members will be sought by way of public advertisement, supporting storied in Council News, notice on Council’s website, social media and/or notification via industry networks and representatives.

 

Committees are only one means of engaging with the community and as outlined in Council’s Community Engagement Strategy, there are a number of alternate mechanisms which Council may adopt to meet these requirements and of which are regularly carried out as part of Council operations. Some examples are on-line Your Say Website, Newsletter, social media, community focus groups, forums and surveys at sites, places or at engagement activities, site visits, media releases and notices, personal briefings and email/phone responses, public exhibition sessions and submissions.

 

Council actively encourages community participation in our governance and decision-making processes and it is a key part of successful decision making.

 

 

 

 

 

Report submitted to the Ordinary Meeting of Council on Monday 28 October 2024

RP-3

 

RP-3               FINANCIAL PERFORMANCE REPORT AS AT 30 SEPTEMBER 2024

Author:          Carolyn Rodney 

         

 

Summary:

This report is for Council to consider information presented on the 2024/25 budget and Long-Term Financial Plan, and details Council’s external investments and performance as at 30 September 2024.

 

 

That Council:

a       approve the proposed 2024/25 budget variations for the month ended 30 September 2024 and note the balanced budget position as presented in this report

b       approve the proposed budget variations to the 2024/25 Long Term Financial Plan Capital Works Program including new projects and 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 at 30 September 2024 in accordance with section 625 of the Local Government Act 1993

e       accept the grant funding offers as presented in this report

Wagga Wagga City Council (Council) forecasts a balanced budget position as of 30 September 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 September when compared to budget ($478,512 up on the monthly budget). This is mainly due to better than budgeted returns on Council’s investment portfolio as a result of the recent interest rate movements, as well as a higher than anticipated investment portfolio balance. Council did experience a positive return on its NSW T-Corp Managed Fund for the month of September, as domestic and international shares continued to provide solid returns.

 

Key Performance Indicators

 

 

OPERATING INCOME

Total operating income is 24% of approved budget and is tracking on budget for the month of September 2024. 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 65% when compared to budget.

 

OPERATING EXPENSES

Total operating expenditure is 29% of approved budget and is tracking over budget at this stage of the financial year. This is due to the payment of annual one-off expenses such as rates and insurance.

 

CAPITAL INCOME

Total capital income is 55% of approved budget, which is mainly attributed to the Accelerated Infrastructure Fund (AIF) grant funding that has been received. 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 15% of approved budget including pending projects. Excluding commitments, the total expenditure is 4% when compared to the approved budget.

 

 

 

2024/25 Revised Budget Result – (Surplus) / Deficit	$’000s
Original 2024/25 Budget Result as adopted by Council Total Budget Variations approved to date Budget Variations for September 2024	$0K $0K $0K
Proposed Revised Budget result for 30 September 2024 - (Surplus) / Deficit	$0K

 

The proposed Operating and Capital Budget Variations for 30 September 2024 which affect the current 2024/25 financial year are listed below.

 

 

The following project has been reviewed and it is proposed to transfer funds from Pending to Confirmed to allow for works to be undertaken in 2024/25. There has been no change to the total budget for the project.

 

Job No.	Project Title	2024/25 Current One-Off Confirmed	2024/25 Proposed One-Off Confirmed	2024/25 Current One-Off Pending	2024/25 Proposed One-Off Pending
45122	LMC Reseal existing internal road network	0	650,000	650,000	0

 

2024/25 Capital Works Summary

 

Capital Works	Approved Budget	Proposed Movement	Proposed Budget
One-off	$154,274,483	$1,618,654	$155,893,137
Recurrent	$37,875,801	$0	$37,875,801
Pending	$32,391,894	($650,000)	$31,741,894
Total Capital Works	$224,542,178	$968,654	$225,510,832

 

 

Current Restrictions

 

Due to finalisation of the 2023/24 financial year figures, reserve balances have not been included in this report.

 

 

Consultancy/Legal & Contracts Review Statements

 

 

 

Investment Summary as at 30 September 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 31/08/2024 $	Closing Balance Invested 30/09/2024 $	September EOM Current Yield %	September EOM % of Portfolio	Investment Date	Maturity Date	Term (mths)
At Call Accounts
NAB	AA-	533,638	241,410	4.35%	0.08%	N/A	N/A	N/A
CBA	AA-	71,948,536	18,356,053	4.35%	6.22%	N/A	N/A	N/A
CBA	AA-	7,701,621	7,730,402	4.40%	2.62%	N/A	N/A	N/A
Macquarie Bank	A+	9,784,694	9,819,934	4.15%	3.33%	N/A	N/A	N/A
CBA	AA-	0	48,515,849	4.35%	16.44%	N/A	N/A	N/A
Total At Call Accounts		89,968,487	84,663,648	4.33%	28.69%
Short Term Deposits
AMP	BBB+	1,000,000	1,000,000	5.40%	0.34%	15/11/2023	15/11/2024	12
Australian Unity	BBB+	1,000,000	1,000,000	5.49%	0.34%	27/11/2023	27/11/2024	12
Suncorp	AA-	2,000,000	2,000,000	5.46%	0.68%	30/11/2023	29/11/2024	12
ING Bank	A	1,000,000	1,000,000	5.46%	0.34%	30/11/2023	29/11/2024	12
BankVic	BBB+	1,000,000	1,000,000	5.45%	0.34%	4/12/2023	4/12/2024	12
AMP	BBB+	2,000,000	2,000,000	5.35%	0.68%	14/12/2023	16/12/2024	12
Australian Unity	BBB+	1,000,000	1,000,000	5.19%	0.34%	30/01/2024	30/01/2025	12
Suncorp	AA-	1,000,000	1,000,000	5.12%	0.34%	7/03/2024	7/03/2025	12
ING Bank	A	1,000,000	1,000,000	5.31%	0.34%	3/06/2024	3/06/2025	12
BankVic	BBB+	2,000,000	2,000,000	5.34%	0.68%	26/06/2024	26/06/2025	12
Bank of Sydney	NR	2,000,000	2,000,000	5.47%	0.68%	28/06/2024	30/06/2025	12
NAB	AA-	1,000,000	1,000,000	5.30%	0.34%	30/07/2024	30/07/2025	12
NAB	AA-	2,000,000	2,000,000	5.45%	0.68%	2/07/2024	2/07/2025	12
NAB	AA-	2,000,000	2,000,000	5.40%	0.68%	8/07/2024	8/07/2025	12
Suncorp	AA-	1,000,000	1,000,000	5.43%	0.34%	10/07/2024	10/07/2025	12
NAB	AA-	2,000,000	2,000,000	5.03%	0.68%	27/08/2024	27/08/2025	12
Total Short Term Deposits		23,000,000	23,000,000	5.35%	7.80%
Medium Term Deposits
Westpac	AA-	2,000,000	2,000,000	1.32%	0.68%	28/06/2021	29/06/2026	60
Westpac	AA-	2,000,000	2,000,000	1.80%	0.68%	15/11/2021	17/11/2025	48
ICBC	A	2,000,000	2,000,000	2.03%	0.68%	6/11/2019	6/11/2024	60
ICBC	A	2,000,000	2,000,000	1.83%	0.68%	28/11/2019	28/11/2024	60
BOQ	A-	1,000,000	1,000,000	2.00%	0.34%	28/02/2020	28/02/2025	60
Police Credit Union	NR	1,000,000	1,000,000	2.20%	0.34%	1/04/2020	1/04/2025	60
ICBC	A	1,000,000	1,000,000	1.85%	0.34%	29/05/2020	29/05/2025	60
ICBC	A	1,000,000	1,000,000	1.86%	0.34%	1/06/2020	2/06/2025	60
ICBC	A	2,000,000	2,000,000	1.75%	0.68%	25/06/2020	25/06/2025	60
ICBC	A	2,000,000	2,000,000	1.75%	0.68%	25/06/2020	25/06/2025	60
ICBC	A	3,000,000	3,000,000	5.07%	1.02%	30/06/2022	30/06/2027	60
ICBC	A	2,000,000	2,000,000	1.50%	0.68%	17/08/2020	18/08/2025	60
BoQ	A-	1,000,000	1,000,000	1.25%	0.34%	7/09/2020	8/09/2025	60
BoQ	A-	2,000,000	2,000,000	1.25%	0.68%	14/09/2020	15/09/2025	60
NAB	AA-	1,000,000	0	0.00%	0.00%	14/09/2023	16/09/2024	12
ICBC	A	1,000,000	1,000,000	1.20%	0.34%	7/12/2020	8/12/2025	60
NAB	AA-	2,000,000	2,000,000	0.95%	0.68%	29/01/2021	29/01/2026	60
NAB	AA-	1,000,000	1,000,000	1.08%	0.34%	22/02/2021	20/02/2026	60
NAB	AA-	2,000,000	2,000,000	1.25%	0.68%	3/03/2021	2/03/2026	60
NAB	AA-	2,000,000	2,000,000	1.40%	0.68%	21/06/2021	19/06/2026	60
Westpac	AA-	2,000,000	2,000,000	1.32%	0.68%	25/06/2021	25/06/2026	60
ICBC	A	1,000,000	1,000,000	1.32%	0.34%	25/08/2021	25/08/2026	60
AMP	BBB+	2,000,000	2,000,000	1.00%	0.68%	18/10/2021	17/10/2024	36
Westpac	AA-	2,000,000	2,000,000	1.56%	0.68%	30/11/2021	29/11/2024	36
Westpac	AA-	2,000,000	2,000,000	2.00%	0.68%	8/02/2022	10/02/2025	36
P&N Bank	BBB+	2,000,000	2,000,000	2.40%	0.68%	9/03/2022	10/03/2025	36
P&N Bank	BBB+	2,000,000	2,000,000	4.90%	0.68%	11/03/2024	11/03/2026	24
MyState	BBB	2,000,000	2,000,000	2.20%	0.68%	2/03/2022	3/03/2025	36
CBA	AA-	2,000,000	2,000,000	3.99%	0.68%	4/05/2022	5/05/2025	36
ING Bank	A	1,000,000	1,000,000	5.11%	0.34%	23/05/2024	25/05/2026	24
BoQ	A-	1,000,000	1,000,000	4.50%	0.34%	7/07/2022	7/07/2025	36
CBA	AA-	1,000,000	1,000,000	4.25%	0.34%	12/08/2022	12/08/2025	36
P&N Bank	BBB+	3,000,000	3,000,000	4.55%	1.02%	29/08/2022	29/08/2025	36
Australian Military Bank	BBB+	2,000,000	2,000,000	4.55%	0.68%	2/09/2022	2/09/2025	36
P&N Bank	BBB+	1,000,000	1,000,000	4.40%	0.34%	9/09/2022	9/09/2025	36
BoQ	A-	1,000,000	1,000,000	4.70%	0.34%	4/10/2022	4/10/2024	24
AMP	BBB+	2,000,000	2,000,000	4.95%	0.68%	21/10/2022	21/10/2024	24
ICBC	A	2,000,000	2,000,000	5.20%	0.68%	21/10/2022	21/10/2025	36
AMP	BBB+	1,000,000	1,000,000	4.75%	0.34%	15/11/2022	14/11/2024	24
AMP	BBB+	1,000,000	1,000,000	4.80%	0.34%	21/11/2022	20/11/2025	36
P&N Bank	BBB+	2,000,000	2,000,000	4.75%	0.68%	16/12/2022	16/12/2024	24
Police Credit Union	NR	2,000,000	2,000,000	5.04%	0.68%	15/02/2023	17/02/2025	24
Police Credit Union	NR	2,000,000	2,000,000	4.94%	0.68%	14/03/2023	14/03/2025	24
P&N Bank	BBB+	2,000,000	2,000,000	5.00%	0.68%	14/03/2023	15/03/2027	48
Hume Bank	BBB+	2,000,000	2,000,000	4.75%	0.68%	31/03/2023	31/03/2025	24
Auswide	BBB	2,000,000	2,000,000	4.95%	0.68%	13/04/2023	13/04/2026	36
P&N Bank	BBB+	2,000,000	2,000,000	5.20%	0.68%	20/04/2023	20/04/2027	48
P&N Bank	BBB+	1,000,000	1,000,000	5.20%	0.34%	26/05/2023	26/05/2026	36
ING Bank	A	2,000,000	2,000,000	5.38%	0.68%	28/06/2024	28/06/2029	60
ING Bank	A	2,000,000	2,000,000	5.37%	0.68%	21/08/2023	21/08/2025	24
P&N Bank	BBB+	1,000,000	1,000,000	5.45%	0.34%	30/11/2023	28/11/2025	24
ING Bank	A	2,000,000	2,000,000	5.20%	0.68%	14/12/2023	15/12/2025	24
ING Bank	A	2,000,000	2,000,000	5.14%	0.68%	3/01/2024	5/01/2026	24
P&N Bank	BBB+	2,000,000	2,000,000	5.10%	0.68%	4/01/2024	4/01/2027	36
Suncorp	AA-	1,000,000	1,000,000	5.08%	0.34%	8/01/2024	8/01/2026	24
Australian Unity	BBB+	1,000,000	1,000,000	4.93%	0.34%	7/03/2024	9/03/2026	24
ING Bank	A	2,000,000	2,000,000	5.10%	0.68%	23/04/2024	24/04/2028	48
NAB	AA-	2,000,000	2,000,000	5.10%	0.68%	6/05/2024	6/05/2026	24
ING Bank	A	1,000,000	1,000,000	5.12%	0.34%	24/05/2024	24/05/2027	36
ING Bank	A	1,000,000	1,000,000	5.26%	0.34%	31/05/2024	31/05/2028	48
ING Bank	A	2,000,000	2,000,000	5.26%	0.68%	6/06/2024	6/06/2028	48
Australian Military Bank	BBB+	1,000,000	1,000,000	5.20%	0.34%	11/06/2024	11/06/2026	24
Australian Military Bank	BBB+	2,000,000	2,000,000	5.20%	0.68%	11/06/2024	11/06/2026	24
BankVIC	BBB+	2,000,000	2,000,000	4.65%	0.68%	27/08/2024	27/08/2026	24
ING Bank	A	2,000,000	2,000,000	4.63%	0.68%	30/08/2024	30/08/2026	24
ING Bank	A	0	1,000,000	4.51%	0.34%	16/09/2024	18/09/2028	48
Westpac	AA-	0	2,000,000	4.45%	0.68%	27/09/2024	28/09/2026	24
Total Medium Term Deposits		109,000,000	111,000,000	3.67%	37.62%
Floating Rate Notes - Senior Debt
HSBC	AA-	2,523,779	0	0.00%	0.00%	27/09/2019	27/09/2024	60
NAB	AA-	2,014,908	2,023,153	BBSW + 77	0.69%	21/01/2020	21/01/2025	60
Newcastle Permanent	BBB+	1,105,063	1,110,189	BBSW + 112	0.38%	4/02/2020	4/02/2025	60
Macquarie Bank	A+	2,008,729	2,017,230	BBSW + 84	0.68%	12/02/2020	12/02/2025	60
BOQ Covered	AAA	553,351	555,833	BBSW + 107	0.19%	14/05/2020	14/05/2025	60
UBS	A+	1,512,150	1,518,981	BBSW + 87	0.51%	30/07/2020	30/07/2025	60
CBA	AA-	2,017,294	2,026,257	BBSW + 70	0.69%	14/01/2022	14/01/2027	60
Rabobank	A+	2,011,180	2,020,593	BBSW + 73	0.68%	27/01/2022	27/01/2027	60
Newcastle Permanent	BBB+	999,306	1,005,285	BBSW + 100	0.34%	10/02/2022	10/02/2027	60
NAB	AA-	2,407,007	2,417,634	BBSW + 72	0.82%	25/02/2022	25/02/2027	60
Bendigo-Adelaide	A-	1,671,953	1,656,934	BBSW + 98	0.56%	17/03/2022	17/03/2025	36
ANZ	AA-	2,021,657	2,031,250	BBSW + 97	0.69%	12/05/2022	12/05/2027	60
NAB	AA-	1,706,798	1,714,013	BBSW + 90	0.58%	30/05/2022	30/05/2025	36
Suncorp	AA-	905,209	909,072	BBSW + 93	0.31%	22/08/2022	22/08/2025	36
ANZ	AA-	2,547,361	2,558,426	BBSW + 120	0.87%	4/11/2022	4/11/2027	60
NAB	AA-	2,539,361	2,551,093	BBSW + 120	0.86%	25/11/2022	25/11/2027	60
Suncorp	AA-	1,129,691	1,118,868	BBSW + 125	0.38%	14/12/2022	14/12/2027	60
CBA	AA-	2,041,945	2,050,496	BBSW + 115	0.69%	13/01/2023	13/01/2028	60
Bank Australia	BBB+	1,915,364	1,929,585	BBSW + 155	0.65%	22/02/2023	22/02/2027	48
Bendigo-Adelaide Covered	AAA	1,020,362	1,012,369	BBSW + 115	0.34%	16/06/2023	16/06/2028	60
CBA	AA-	2,521,782	2,532,364	BBSW + 95	0.86%	17/08/2023	17/08/2028	60
ANZ	AA-	2,136,946	2,117,748	BBSW + 93	0.72%	11/09/2023	11/09/2028	60
Bank Australia	BBB+	1,665,547	1,677,013	BBSW + 150	0.57%	30/10/2023	30/10/2026	36
ANZ	AA-	2,524,159	2,534,828	BBSW + 96	0.86%	5/02/2024	5/02/2029	60
ANZ	AA-	1,015,429	1,005,654	BBSW + 98	0.34%	19/03/2024	19/03/2029	60
ING Bank	A	506,938	502,600	BBSW + 95	0.17%	22/03/2024	22/03/2027	36
BoQ	A-	1,668,394	1,676,278	BBSW + 128	0.57%	30/04/2024	30/04/2029	60
Bendigo-Adelaide	A-	804,521	808,398	BBSW + 100	0.27%	14/05/2024	14/05/2027	36
ANZ	AA-	1,518,883	1,505,230	BBSW + 86	0.51%	18/06/2024	18/06/2029	60
Teachers Mutual	BBB+	914,392	906,519	BBSW + 130	0.31%	21/06/2024	21/06/2027	36
ING Bank	A	2,206,042	2,215,986	BBSW + 102	0.75%	20/08/2024	20/08/2029	60
CBA	AA-	1,505,495	1,512,123	BBSW + 87	0.51%	22/08/2024	22/08/2029	60
Suncorp	AA-	0	2,402,217	BBSW + 92	0.81%	27/09/2024	27/09/2029	60
Total Floating Rate Notes - Senior Debt		53,640,995	53,624,222		18.17%
Fixed Rate Bonds
ING Covered	AAA	704,502	708,139	1.10%	0.24%	19/08/2021	19/08/2026	60
Northern Territory Treasury	AA-	3,000,000	3,000,000	1.00%	1.02%	24/08/2021	16/12/2024	40
Northern Territory Treasury	AA-	3,000,000	3,000,000	1.50%	1.02%	24/08/2021	15/12/2026	64
BoQ	A-	1,809,370	1,820,589	2.10%	0.62%	27/10/2021	27/10/2026	60
BoQ	A-	2,072,309	2,085,145	5.30%	0.71%	30/04/2024	30/04/2029	60
Northern Territory Treasury	AA-	2,000,000	2,000,000	1.50%	0.68%	6/08/2021	15/12/2026	64
Northern Territory Treasury	AA-	1,000,000	1,000,000	1.50%	0.34%	14/07/2021	15/12/2026	65
Northern Territory Treasury	AA-	2,000,000	2,000,000	1.30%	0.68%	29/04/2021	15/06/2026	61
Northern Territory Treasury	AA-	2,000,000	2,000,000	1.00%	0.68%	30/11/2020	15/12/2025	60
Northern Territory Treasury	AA-	1,000,000	1,000,000	1.00%	0.34%	20/11/2020	15/12/2025	61
Northern Territory Treasury	AA-	2,000,000	2,000,000	1.00%	0.68%	21/10/2020	15/12/2025	62
Total Fixed Rate Bonds		20,586,180	20,613,874	1.71%	6.99%
Managed Funds
NSW Tcorp	NR	2,132,205	2,158,830	1.25%	0.73%	17/03/2014	1/09/2029	185
Total Managed Funds		2,132,205	2,158,830	1.25%	0.73%
TOTAL CASH ASSETS, CASH EQUIVALENTS & INVESTMENTS		298,327,868	295,060,574		100.00%

 

 

Council’s investment portfolio is dominated by Term Deposits, equating to approximately 45% of the portfolio across a broad range of counterparties. Cash equates to 29%, with Floating Rate Notes (FRNs) around 18%, fixed rate bonds around 7% 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 slightly over the past month, down from $298.33M to $295.06M.

 

 

Monthly Investment Movements

 

Redemptions/Sales – Council redeemed/sold the following investment securities during September 2024:

 

 

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

 

 

Rollovers – Council did not roll over any investment securities during September 2024.

 

Monthly Investment Performance

 

Interest/growth/capital gains/(losses) for the month totalled $1,068,766, which compares favourably with the budget for the period of $590,254 - outperforming budget for the month by $478,512.

 

Council’s outperformance to budget for September 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 recent 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 also experienced a positive return on its NSW T-Corp Managed Fund for the month of September, with the fund returning +1.25% (or $58,844) as domestic (+2.97%) and international (+1.64%) shares continued to provide solid returns.

 

 

In comparison to the AusBond Bank Bill Index* of 4.45% (annualised), Council’s investment portfolio returned 4.08% (annualised) for the month of September. 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 previous aggressive increases in the AusBond Bank Bill index with the unexpected movements in the RBA cash rate.

 

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 4.04%, marginally underperforming the AusBond Bank Bill index by -0.37%. Councils investment portfolio has continued to outperform the AusBond Bank Bill Index* over the longer-term time period, returning 2.91% per annum over the past 3 years – outperforming the benchmark by 0.10% 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: Wagga Wagga City Council leads through engaged civic governance and is recognised and distinguished by its ethical decision-making, efficient management, innovation and quality customer service

Ensure transparency and accountability

 

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 2024/25 to 2033/34

 

 

Report submitted to the Ordinary Meeting of Council on Monday 28 October 2024

RP-3