Agenda of Ordinary Meeting of Council

Report submitted to the Ordinary Meeting of Council on Monday 27 May 2024

RP-2

RP-2 North Wagga Flood Mitigation Options

Author: Andrew Mason

Executive: Phil McMurray

Summary:

Finalisation of the North Wagga Flood Mitigation options feasibility study.

Recommendation

That Council receive and accept the CIE Final Report Flood Mitigations Options for North Wagga and implements the following approach that is staged and includes:

a Stage 1 - Upgrading the existing North Wagga Levee system (Stage 1 of L4B - 5% AEP (1 in 20)) and offering Voluntary House Raising and Purchase subject to risk reduction and cost effectiveness. This process will include a Review of Environmental Factors but exclude a Biodiversity Development Assessment Report for this particular stage.

b Stage 2 - note that the cost of Stage 2 of option L4B is currently prohibitive and that Stage 2 of option L4B, being increasing the road heights and bridges along Hampden Ave to provide a safe evacuation route, be considered in the future subject to funding and approval processes. This future consideration may include alternate measures or new designs as outlined in the report.

Report

The Floodplain Risk Management Advisory Committee have been oversighting expert consultants as they have undertaken a North Wagga Flood Mitigation Options Feasibility Study.

That work was based on the recommendations from the Wagga Wagga Revised Murrumbidgee River Floodplain Risk Management Study and Plan (2018) (FRMS&P).

The options considered for flood mitigation were:

· PRI: Voluntary House Raising (VHR) and Voluntary House Purchase (VHP) for eligible properties on the floodplain (e.g. North Wagga, Oura and Gumly Gumly).

· L4B: North Wagga Levee System Upgrade to withstand a 5% AEP (1 in 20 chance) flood event combined with increase in some road heights and bridges along Hampden Ave to provide a safe evacuation route for residents from North Wagga. This would also include conveyance improvements through Wilks Park. The North Wagga Levee system would be upgraded first (Stage 1), and at a later stage the surrounding works would be constructed (Stage 2).

· A combined approach that is staged and includes:

a. Offering Voluntary House Raising and Purchase to those outside the levees, subject to risk reduction and cost effectiveness (L4B)

b. Increasing the road heights and bridges along Hampden Ave to provide a safe evacuation route (Stage 2 of Option L4B)

c. VHP and VHR for those inside the North Wagga Levee System, subject to risk reduction and where it is cost effective to do so.

The consultant, The Centre for International Economics has produced a final report (as attached under separate cover) and conclusion.

The final report concludes that:

Of the different options that could be adopted:

– the combined L4A with a targeted VHR/VHP to high risk residents outside North Wagga delivers the best outcome for the community. However, there may be challenges for some households due to accessibility issues which could result in additional costs above the assumed $120,000/property raising.

– L4B by itself or in combination with any other strategies is too expensive to be cost effective, regardless of the size of potential benefits.

– VHR and VHP delivers positive outcomes for the community where it is applied to high risk properties where the risk reduction is greater than the cost of the actions. This suggests a strategic approach to the application of these policies based on estimated risk reduction. Further, the VHP policy could be more efficient where the purchase applies only after flooding. A pre-emptive policy would immediately “destroy” the value of the property with certainty, compared to the comparatively low probability of this. An alternative would be to purchase a property pre-emptively but maintain it as part of the housing stock until it is damaged by a flood event which could be in, say, 10 years’ time.

In implementing the proposed levee it is important to recognise that water is diverted to other parts of the floodplain, potentially negatively impacting on some properties. However, where negative impacts occur these are typically only result in minor increases flood depths. The risk reduction benefits of the levee substantially outweighs the potential negative impacts on some properties.

This final report was presented to the Floodplain Risk Management Advisory Committee on 15 May 2024, and the committee recommendation was:

That the Floodplain Risk Management Advisory Committee receive and accept the final report and recommends the following approach to Council that is staged and includes:

a. Stage 1 - Upgrading the existing North Wagga Levee system (Stage 1 of L4B - 5% AEP (1 in 20)) and offering Voluntary House Raising and Purchase subject to risk reduction and cost effectiveness. This process will include a Review of Environmental Factors but exclude a Biodiversity Development Assessment Report for this particular stage.

b. Stage 2 – note that the cost of Stage 2 of option L4B is currently prohibitive and that Stage 2 of option L4B, being increasing the road heights and bridges along Hampden Ave to provide a safe evacuation route, be considered in the future subject to funding and approval processes. This future consideration may include alternate measures or new designs as outlined in the report.

Public Exhibition

Public exhibition of the Flood Mitigations Options for North Wagga was required by the Local Government Act (1993, Section 38). This section stipulates that Council must exhibit the draft plan for public comment for a period of at least 28 days, and that submissions must be considered by the council before the plan is endorsed or amended.

The Draft Report was endorsed for public exhibition at the Council meeting on the 11 March 2024. The Public Exhibition period commenced on the 15 March 2024 and was closed on the 26 April 2024 after a period of 42 days.

Digital copies of the report were available on the Council website through the “Have Your Say” page and one on one sessions with Council Officers were available to be booked through this page.

The Draft reports below were presented for public exhibition:

· Flood Mitigation Options for Wagga Wagga, Evaluation of options (CIE, Feb 2024)

· Flood Mitigation Options for Wagga Wagga, Evaluation of options (CIE, Oct 2023)

· North Wagga Flood Mitigation Community Engagement Report Phase 2 (Woolcott Research, 2024)

· North Wagga Flood Risk Mitigation Community and stakeholder Engagement Study (Woolcott Research, 2023)

· Assessment of Environmental Constraints North Wagga Flood Mitigation Options (NGH, 2023)

· Biodiversity Assessment Report North Wagga Flood Levee (NGH, 2023)

· Flood Impacts of Flood Mitigation Options for North Wagga (WMA Water, 2024)

There were six submissions received from the public and one from Biodiversity Conservation and Science during the PE period and an outline of these is included as an attachment to the final report.

The three submissions and the three one on one meetings did not highlight any significant problems or concerns with the proposed mitigation options.

The submission from Biodiversity Conservation and Science stated:

BCS has reviewed the Biodiversity Assessment Report North Wagga Flood Levee (NGH 2023). We agree the proposed works are likely to cause significant impact on threatened species. While that impact is likely to vary depending on the option(s) that are eventually built, we consider it important to determine the precise nature of that impact per option, and to use that information iteratively to avoid and minimise harm to biodiversity.

Given significant impact is likely, section 7.12(3) of the Biodiversity Conservation Act 2016 establishes Council is not to give consent without either the concurrence of the Environment Agency Head or a Biodiversity Assessment Development Report (BDAR). The review of environmental factors (REF) established by Part 8 of the Environmental Planning and Assessment Regulation 2021 is a good opportunity for Council to decide which of those two pathways best suit the activity. Given the proposed activity involves various options, we strongly recommend a BDAR is the best approach.

The BDAR relies on a method that will determine which option best avoids and minimises harm, mitigation measures that can be applied locally to maintain habitats and populations in situ, and price offsets per option to inform Council’s decision. The BDAR will also rely on the Biodiversity Offset Scheme to mitigate harm. That approach means Council does not have the ongoing burden of managing offset work.

Stage 1 of the project is based on the existing levee footprint, and Council will undertake an REF for this stage. When stage 2 of the project receives appropriate funding, Council would undertake a BDAR or appropriate environmental analysis.

Indicative implementation timeline for adopted recommendation:

Stage	Duration	Commencement
Topographic Survey	6 months	August 2024
VHR and VHP project development and implementation	3-5 years	January 2028
Environmental Assessment	6 months	September 2024
Detailed Design	12-15 months	April 2025
Levee contractor procurement	3 months	August 2026
Levee construction	24 months	January 2027

Evacuation Level for North Wagga

With the existing levee in place, the current evacuation trigger for North Wagga is a river height of 9.3m. The existing road network around North Wagga is inundated at a river height of approximately 9.4m. The “banks” along Hampden Ave between the Wiradjuri Bridge and Parken Pregan Bridge adjacent to Wilks Park are not keyed into the underlying ground and cannot be assumed to offer a safe evacuation route beyond the existing 9.3m.

The Mill St causeway between East St and the Marah St is inundated at 9.4m and the East St section of North Wagga becomes isolated beyond this river height.

If a 10.1m levee plus freeboard is constructed around North Wagga and the existing road network or the “banks” are not modified, then the evacuation trigger for North Wagga will probably remain at 9.3m.

The NSW State Emergency Service have been consulted regarding this issue and have provided the following response:

The NSW SES further recommend:

· Continuing to progress flood mitigation and management options in accordance with the NSW Flood Prone Land policy as set out in the Flood Risk Management Manual 2023 (the Manual) and supporting guidelines. This would include a detailed assessment during the next phase of the mitigation process to understand flood behaviour and constraints.

· Investigating ways to improve emergency access and egress during a flood.

· Carefully considering any locations of proposed increase in density of development and its associated increased risk to life and property. This flood mitigation option will address some residual risk to life and property.

· Considering development control plans (DCP) which strengthen the land use planning process to identify areas where risk to life from flooding is intolerable.

The second point in the above extract may allow Council to investigate the formalisation of the Wilks Park banks to enable the construction of similarly sized banks to a suitable standard to allow them to be licensed as levees and potentially for the SES and Council to raise the evacuation trigger for North Wagga to a level closer to the design height of the new levee.

If the existing banks along Wilks Park are formalised as part of the levee construction, the section of North Wagga protected by the ring levee will be able to evacuate at more appropriate height of approximately 9.7m or 9.8m while the section of North Wagga along East Street will need to evacuate at approximately around 9.3m.

The secondary issue with evacuation and egress is that the residents along East Street will possibly still have to evacuate at 9.3m. Mill Street between East Street and the ring levee becomes inundated at around 9.3-9.4m.

There is no simple infrastructure solution to this, and it may require the new levee design to incorporate a helicopter rescue pad into the East Street levee for emergency evacuations.

Newly Inundated Houses

If a 5% AEP levee is constructed around North Wagga without the excavation to offset the displacement of water, there will be adverse effects to over 1100 other houses. In a larger flood event (1 in 200, 1 in 500) when the main city levee is overtopped there will be increased water in a significant number of houses. These houses already have over floor flooding but will have an increased amount of water flowing through them.

There are a few properties that will now be flood affected that weren’t previously inundated around East Wagga in a 5% AEP. Those 25 properties will be part of the Third-Party Impact assessment in the detailed design and the mitigation options will be included in the construction phase of the levee.

During the design phase of the project, there will be extensive and thorough consultation with properties where the third-party impact of the levee raising is determined to have a real and prejudicial impact. This consultation will be undertaken to inform Council and take place prior to any approval for Stage 1 works, which would include specific mitigation options identified for those properties.

Financial Implications

· Council has $6.2M in funding raised through the levee Special Rate Variation (SRV).

· Council has $1M available through the CDG0789 grant, this must be expended by December 2025.

· Council has applied for the next round of BCS DCCEEW Floodplain grants for approximately $450,000 to allow for the detailed design and Third-Party Impact Assessment and mitigation options.

· Council will apply, for a VHP and VHR feasibility Scoping Study for all eligible houses on the floodplain through a future round of BCS DCCEEW Floodplain grants.

Policy and Legislation

Local Government Act 1993

NSW Government Flood Risk Management Manual

Link to Strategic Plan

Safe and Healthy Community

Objective: Our community feel safe

Be responsive to emergencies

Risk Management Issues for Council

Flood risk as identified in the report in attachments.

Internal / External Consultation

A program of staged community engagement was undertaken on this project.

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

Involve

Collaborate

Other methods (please list specific details below)

Attachments

CIE Final Report Flood Mitigation Options for North Wagga - Provided under separate cover

Report submitted to the Ordinary Meeting of Council on 27 May 2024

RP-3

RP-3 Tolland Renewal Project

Author: Chloe Boyd

Executive: John Sidgwick

Summary:

Since the last briefing to councillors (31 July 2023, Council Meeting on 4 September 2023), Council staff have continued to collaborate with Homes NSW and the Department of Planning, Housing and Infrastructure (DPHI) to progress the Tolland Renewal Project. This includes the Concept Masterplan, the Development Controls, the planning agreement, land acquisition and the Planning Proposal.

This Council report provides an update on all elements of the Tolland Renewal Project. The report seeks to adopt the Masterplan, to publicly exhibit the draft Planning Agreement, and to update councillors and the community on the Planning Proposal, development controls and land acquisition. The Concept Masterplan is finalised for adoption; the Development Controls are under review; the planning agreement is in draft and ready to go on public exhibition; the land acquisition approach is still to be determined with Homes NSW and DPHI; and DPHI is progressing the Planning Proposal to finalisation.

The Tolland Renewal Project is anticipated to achieve some key milestones within the next six months, delivering a significant renewal opportunity for the Wagga Wagga community.

Recommendation

That Council:

a receive and note 29 submissions and two (2) petitions were received during the public exhibition period between 11 September 2023 to 24 October 2023 on the Tolland Concept Masterplan

b adopt the finalised Tolland Concept Masterplan

c provide in principle support for the proposed Planning Agreement in relation to the Tolland Renewal Project

d place the proposed Planning Agreement on public exhibition for a period of 28 days from 31 May 2024 to 28 June 2024 and invite submissions until 12 July 2024

e receive a further report following the exhibition and submission period:

i addressing any submission made in respect of the proposed planning agreement; and

ii recommending whether or not to enter into the proposed planning agreement

f approve dispensation from Council’s Developer Infrastructure Agreements Policy (POL 121) and allow one public exhibition period for the proposed planning agreement

g approve dispensation from Council’s Developer Infrastructure Agreements Policy (POL 121) in relation to the requirement of an unconditional bank guarantee

h note the updates provided on the acquisition of land, the State-Assessed Planning Proposal and the draft development controls

Report

Background

This Council report has been prepared by a cross-directorate team, including the strategic planning, contributions, property, and development assessment teams. The content of this Council report has been informed with additional inputs from the infrastructure, recreation and community teams.

The original Tolland Estate was developed and built between the 1970s and 1990s. It currently comprises a large number of properties owned by Homes NSW (formerly the NSW Land and Housing Corporation and Aboriginal Housing Office), as well as private dwellings, parcels of vacant land, a community centre, Red Hill Public School, OneSchool Global NSW – Wagga Wagga, and Wagga Wagga Brethren Church.

Over time, there have been growing concerns regarding the social housing stock located in Tolland – it is no longer fit-for-purpose and has significant maintenance issues for Homes NSW. The Tolland Renewal Project seeks to deliver a mix of new social, affordable and private housing fit for the needs of residents, improved green spaces such as parks and outdoor communal areas, increased road connectivity and pathways, and increased recognition of Tolland’s First Nations history.

The amount of private, social and affordable housing dwellings to be delivered in the project is identified in Table 1 below.

Type of Housing	Number of dwellings
Private housing	270 private lots and 22 private dwellings in Tolland
Social housing and Affordable housing	200 dwellings in Tolland
Social housing and Affordable housing	84 social dwellings in Wagga LGA
Net increase in social and affordable dwellings	65 additional dwellings in Wagga LGA

Transfer of tenancies

Homes NSW will be transferring the management of the Tolland tenancies from Homes NSW to a community housing provider. Argyle Housing will be the provider managing tenancies. Argyle Housing is a social housing provider that offers secure, affordable, long-term housing similar to Homes NSW and are committed to delivering positive client outcomes for the Wagga community. Argyle Housing has a long-standing presence in the Wagga Wagga region, already managing 230 social housing properties and boasts extensive expertise.

Tolland Renewal Project elements

The Tolland Renewal Project is a complex, multi-faceted project, with multiple planning and non-planning elements required to deliver the desired outcomes. The separate, but interrelated, elements of the Tolland Estate Renewal are:

· the Concept Masterplan

· development controls

· the Planning Agreement

· acquisition of Council-owned land

· the Planning Proposal.

1. Concept Masterplan

Council has provided inputs to Homes NSW on the Tolland Estate Renewal since late 2022, with Homes NSW preparing a draft Concept Masterplan for the site. The Concept Masterplan identifies the following key features:

· introduction of a new public open space spine, from south-west to north-east, connecting to the existing Chambers Park and drainage corridor above Bruce Street.

· encouragement of medium-density development adjacent to the existing and proposed open space, as well as in key interfaces.

· creation of enhanced road connections, through the removal of several existing cul-de-sacs and delivery of through-streets.

The Concept Masterplan will provide the community with an understanding of the intended vision and future outcomes for the renewal area and will assist Council decision-making on any Development Applications lodged in the area.

Consultation Summary

Council exhibited the draft Tolland Concept Masterplan from 11 September to 24 October 2023 (42 days). During the public exhibition period, Homes NSW and Council collaborated to provide engagement opportunities for the community. This included:

· up-to-date Council and Homes NSW websites

· the preparation of an exhibition brochure

· notification letters to residents and landowners within and surrounding the renewal precinct

· four drop-in sessions, run over two days at the Tolland Community Centre, with both Homes NSW and Council staff in attendance.

Homes NSW also ran a school engagement activity at Red Hill Public School, using Minecraft Education to virtually explore a replica suburb of Tolland. Students could provide their ideas for future project inclusions.

At the close of public exhibition, Council had received 28 submissions, including two petitions and three public agency submissions. One late submission was received on 26 February 2024, which was provided to Homes NSW for comment. Council reviewed the submissions and liaised with Homes NSW to prepare responses to the submissions. These are provided in the Engagement Summary at Attachment 6.

Current Status

Since the councillor workshop on 6 May, the landscape masterplan for the Tolland Renewal Project has been incorporated into the Final Concept Masterplan set (Attachment 1). The Concept Masterplan has been finalised and is now being reported to Council. It is recommended that the Concept Masterplan be adopted.

2. Development Controls

The rezoning of the Tolland renewal area that is the subject of the Planning Proposal has only included R1 General Residential zoning across all of the residential areas. The Concept Masterplan identifies and proposes a subdivision of the land that includes small sized lots (approximately 200sq.m) that ordinarily would not be suitable within an R1 zone but would certainly be anticipated and expected within an R3 Medium Density residential area. Whilst the concept of the small lots is welcomed, it is important to note that a subdivision received in any other R1 zone across the Wagga Wagga LGA would not be supported under Council’s current adopted controls.

The current DCP controls are written within the above context and reflect the differing patterns of development within the R1 and R3 zones. It will therefore be necessary to include a limited number of controls that reflect the desired outcomes of the development on the proposed smaller sized lots.

The current DCP will continue to apply to the renewal area. There is no need for a separate, stand-alone Development Control Plan and a site-specific chapter will not be needed. The existing site-specific chapters relate to Urban Release Areas and there is a legislated requirement (LEP clause 6.3) that requires a DCP to be in place for these areas.

A recently approved amendment to the DCP added a new clause into section 12 that addresses ‘Specific Uses and Developments.’ Clause 12.14 references the Tolland Renewal Area and requires that developments are consistent with the Tolland Concept Masterplan. It is anticipated that additional controls relating to developments within the Tolland renewal area will be included within this section of the DCP.

A set of draft controls have been prepared by Stantec and are subject to review and edit. The review, editing and preparation of a detailed set of controls is required and once complete must be reported to Council to enable public exhibition of the amended controls. Following a minimum four-week public exhibition period, a further report back to Council is required to enable the DCP amendments to be adopted. It is anticipated a report to Council to put the development controls on public exhibition would occur around June 2024.

3. Planning Agreement

On 28 March 2024 Council received a draft deed for a proposed planning agreement from Homes NSW. The proposed planning agreement offers to construct active travel infrastructure, recreational assets and community facilities in the Tolland area in addition to the requirements of the development, in lieu of the payment of Section 7.11 contributions required for the subdivision development. Homes NSW provided a Contributions Works Delivery Plan, which supports the draft deed and provides details of the infrastructure projects included in the offer, including costs and delivery timeframes. The Plan was received 12 April 2024 and is circulated as Attachment 5.

In a letter received 12 April 2024 (circulated as Attachment 3) Homes NSW requested dispensation from Council’s Developer Infrastructure Agreements Policy (POL 121) in relation to two items:

· the requirement for two public exhibitions of the proposal and

· the need for an unconditional bank guarantee.

Homes NSW advise they and the Argyle Consortium have actively consulted the community on the intent and progress of the Tolland Renewal Project for some time. They suggest as there has been extensive community consultation, placing the letter of offer on public exhibition does not add value. They request Council grant a dispensation from the policy and proceed straight to the statutory requirement to publicly exhibit the proposed planning agreement draft deed. Staff support this request, noting Homes NSW will pay any additional legal fees if further changes are required to the draft deed following exhibition and Homes NSW has already done active community consultation on the proposed development.

In addition, they note Council’s policy requires a bank guarantee as security. They also request a dispensation from this requirement. They state the deed is a legally binding document with Homes NSW, who presents no risk to Council of insolvency or bankruptcy which binds them to undertake the works as identified. Homes NSW has confirmed this, per the letter at Attachment 8. Council staff support this request on the basis that Homes NSW will be responsible for delivering the infrastructure included in the proposed planning agreement and the fact that the agreement is between local and state government. The relationship between these two levels of government is different in nature than with other developers. Therefore, a bank guarantee is not required as part of the draft deed.

Section 7.11 contributions are required for each additional lot in the Tolland Renewal Project development, at the city-wide rate of $11,543 (to be indexed annually on 1 July). The Section 7.11 contribution (in 2023/24 dollars) required is estimated to be $3.5 million. The proposed planning agreement offers to construct infrastructure, in addition to what is required for the development in lieu of paying these contributions. The total cost of the proposed infrastructure is approximately $7.1 million, approximately double the Section 7.11 contributions due.

Consultation Summary

A cross directorate team has considered the infrastructure in the proposed planning agreement as details have been provided over the last four months. This team has also been consulted about the draft deed.

The draft deed must be placed on public exhibition for 28 days. A Community Engagement Plan for this period forms Attachment 4 to this report. The Plan aims to build on the extensive consultation already done by Homes NSW.

Current Status

The draft deed is being reported to the 27 May 2024 Council meeting prior to being placed on public exhibition.

4. Reclassification / Land Acquisition

As part of the proposal, Homes NSW have proposed entering into a ‘land swap’ arrangement with Council. This would include Council providing to Homes NSW (free of charge) some of its community land, including open space and dedicated road parcels on the basis that Homes NSW will dedicate equivalent open space back to Council as part of the renewal process. Council has been seeking confirmation from Homes NSW for some time as to how they propose to effect this transaction. Commentary to date has varied between it being a land swap, to Council undertaking road closures, to Homes NSW acquiring the land from Council.

The latest update from Homes NSW is that, in order to facilitate the proposed acquisitions (which includes 6 parcels of community land and all of the roads within the project area), they would like to use s29 of the Land Acquisition (Just Terms Compensation) Act 1991 (the Just Terms Act) as the basis of an acquisition from Council. The justification for utilising this provision is that if the owner of the land has agreed on all relevant matters concerning the compulsory acquisition (including the compensation to be paid, if any), Homes NSW would not have to comply with certain aspects of the Just Terms Act.

Council officers do not agree with the use of s29 of the Just Terms Act. The land in question is land which is classified as community land, and the Local Government Act prevents a Council from disposing of, or otherwise dealing with, community land. Council has sought independent legal advice from Lindsay Taylor Lawyers in relation to this issue and have been advised that if Council were to agree to terms, this could be considered an agreement to dispose of land and be a breach of Council’s obligations under the Local Government Act. Staff’s view is that the appropriate process to facilitate the transfer of the Council land is either:

i. Undertake a compulsory acquisition of land (i.e. without agreement of Council). Homes NSW has the ability to undertake the compulsory acquisition of land from Council without Council’s consent. The timeframe for completing such an action would likely be in excess of 12 months. A compulsory acquisition process would also generally require the payment of compensation to Council at the time of acquisition, rather than Homes NSW proposed dedication of land back to Council at an undetermined time in the future.

ii. Undertake a Planning Proposal to reclassify the land from community to operational. Once reclassified, Council could more easily negotiate a land transfer with Homes NSW (subject to Council endorsement).

Council has also been awaiting confirmation whether the Department of Planning, Housing and Infrastructure (DPHI) would undertake a reclassification of land as part of the existing planning proposal (see Section 5 below). Initially, the advice from DPHI was that the reclassification was out of scope and it would be a matter for Council and Homes NSW to resolve the land ownership issues.

DPHI have subsequently contacted Council to determine whether Council would provide a letter of support to DPHI if the Minister elected to use ministerial powers to effect the reclassification of land by way of an amendment to Schedule 4 of the Wagga Wagga Local Environment Plan 2010. Council staff have reiterated the concerns in relation to the disposal of community land as set out above, and advised that if the Minister was seeking a letter of support before exercising those powers in relation to community land, the matter would need to be notified to the community and put to a Council meeting for endorsement before such a letter would be provided.

At its meeting with Council on 23 April 2024, DPHI confirmed that it would utilise a Section 3.22 expedited amendment under the Environmental Planning and Assessment Act 1979 to reclassify the community land. This differs from the process of reclassification via Planning Proposal (noted at point 2 above) and would not be subject to public exhibition or a public hearing, which is standard process in a planning proposal reclassification. Council has not been requested to provide a letter of support to this process at this stage, and if such a request was received, Council would need to follow the process outlined above.

Current Status

Council has received confirmation from DPHI that DPHI will undertake a Section 3.22 expedited amendment to reclassify the Council-owned community land to operational land. Once the land is reclassified, Council would be able to engage in a s29 agreement with Homes NSW.

5. Planning Proposal – State Assessed Planning Pathway

Homes NSW opted to apply for inclusion in the pilot State Assessed Planning Pathway program (SAPP program). This program is intended to deliver and support strategically important rezonings, supporting home ownership by enabling a continual pipeline of housing supply across NSW.

The Tolland Estate Renewal was identified as one of five projects to be included in the pilot SAPP program. As a result, DPHI, rather than Council, will assess, exhibit, and finalise the planning proposal lodged by Homes NSW. Council was consulted by DPHI throughout the SAPP program.

Through the SAPP process, the Wagga Wagga Local Environmental Plan 2010 will be updated through an amending State Environmental Planning Policy (SEPP).

Consultation Summary

The Planning Proposal was publicly exhibited by DPHI from 29 January to 26 February 2024, where the Planning Proposal and supporting documentation was available on the Planning Portal. DPHI and Homes NSW ran two drop-in sessions on 22 February 2024, enabling the community to ask questions about the process. Eleven submissions were received during the public exhibition period of the Planning Proposal, including six from individuals and organisations and five from public agencies (including Council).

Current Status

The Planning Proposal is currently being finalised by DPHI, following public exhibition. DPHI will continue to liaise with Council to finalise the amending SEPP. It is anticipated that the process will be completed in the second half of 2024.

Financial Implications

Any planning agreement entered into where Section 7.11 contributions are not paid in lieu of infrastructure being provided means Council is not collecting funds to be allocated to projects identified in the Local Infrastructure Contributions Plan 2019 -2034. In this case the Section 7.11 contributions which will not be collected are estimated to be $3.5 million (in 2023/24 dollars).

However, in the case of the Tolland Renewal Project, in 2018, when the Contributions Plan was developed the Tolland area was expected to increase by 5 lots. The Tolland Renewal Project increases the lots in the area by approximately 300.

The value of the infrastructure to be provided under the proposed planning agreement is double the Section 7.11 contributions due for the development at $7.1 million (in 2023/24 dollars).

The reconfiguration of parts of the renewal area will see the need for reclassification of Council land and potential land swaps to facilitate the Concept Masterplan outcomes. Council staff are continuing to work with Homes NSW to understand the implications and requirements around this, including financial impacts to Council.

Policy and Legislation

Wagga Wagga Local Strategic Planning Statement

Developer Infrastructure Agreements Policy (POL121)

Wagga Wagga Local Infrastructure Contributions Plan 2019 – 2034

Environmental Planning and Assessment Act 1979 (particularly Section 7.4)

Land Acquisition (Just Terms Compensation) Act 1991

Link to Strategic Plan

The Environment

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

Provide for a diversity of housing that meets our needs

Risk Management Issues for Council

The draft Deed for the proposed planning agreement includes clauses to manage the risks for Council and the developer alike during the implementation stage. As the developer in this case is the State Government the likelihood of the identified risks in the draft Deed becoming issues is considered low.

Internal / External Consultation

A Community Engagement Plan for the public exhibition of the proposed planning agreement has been developed and forms Attachment 4.

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

Involve

Collaborate

Other methods (please list specific details below)

Attachments

1.	Attachment 1 - Final Concept Masterplan - Provided under separate cover
2.	Attachment 2 - Voluntary Planning Agreement - Provided under separate cover
3.	Attachment 3 - Homes NSW Dispensation Letter - Provided under separate cover
4 .	Attachment 4 - Community Engagement Plan - VPA - Provided under separate cover
5 .	Attachment 5 - Tolland Renewal - CWDP - Provided under separate cover
6 .	Attachment 6 - Tolland Concept Masterplan - Engagement Summary - Provided under separate cover
7 .	Attachment 7 - Homes NSW Community Engagement Report - Provided under separate cover
8 .	Attachment 8 - Letter to Wagga Wagga City Council - Tolland VPA advice - Provided under separate cover

Report submitted to the Ordinary Meeting of Council on Monday 27 May 2024

RP-6

RP-6 FINANCIAL PERFORMANCE REPORT AS AT 30 APRIL 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 30 April 2024.

Recommendation

That Council:

a approve the proposed 2023/24 budget variations for the month ended 30 April 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 30 April 2024 in accordance with section 625 of the Local Government Act 1993

Report

Wagga Wagga City Council (Council) forecasts a balanced budget position as of 30 April 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 April when compared to budget ($301,917 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. Council did experience a negative return on its NSW T-Corp Managed Fund for the month of April, as domestic and international shares experienced losses.

Key Performance Indicators

OPERATING INCOME

Total operating income is 88% of approved budget and is tracking ahead for the month of April 2024 mainly 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 98% when compared to budget.

OPERATING EXPENSES

Total operating expenditure is 80% of approved budget and is tracking under budget at this stage of the financial year.

CAPITAL INCOME

Total capital income is 62% 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 111% of approved budget including pending projects. Excluding commitments, the total expenditure is 43% when compared to the approved budget.

WAGGA WAGGA CITY COUNCIL STATEMENT OF FINANCIAL PERFORMANCE 1 JULY 2023 TO 30 APRIL 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)	(66,120,804)	0	(66,120,804)	83%
User Charges & Fees	(32,607,964)	2,042,180	(30,565,784)	(27,179,059)	0	(27,179,059)	89%
Other Revenues	(3,040,358)	(114,185)	(3,154,543)	(4,649,507)	0	(4,649,507)	147%
Grants & Contributions provided for Operating Purposes	(13,891,687)	5,725,583	(8,166,104)	(5,177,189)	0	(5,177,189)	63%
Grants & Contributions provided for Capital Purposes	(43,630,578)	(6,395,287)	(50,025,864)	(32,634,839)	0	(32,634,839)	65%
Interest & Investment Revenue	(4,873,916)	0	(4,873,916)	(7,654,974)	0	(7,654,974)	157%
Other Income	(1,564,445)	(22,667)	(1,587,112)	(1,516,868)	0	(1,516,868)	96%
Total Revenue	(179,309,895)	1,235,625	(178,074,270)	(144,933,239)	0	(144,933,239)	81%

Expenses
Employee Benefits & On-Costs	56,172,711	525,510	56,698,221	40,863,542	0	40,863,542	72%
Borrowing Costs	3,363,314	0	3,363,314	2,837,764	0	2,837,764	84%
Materials & Services	41,316,274	15,968,496	57,284,769	40,417,484	8,525,985	48,943,469	85%
Depreciation & Amortisation	44,291,577	0	44,291,577	36,909,647	0	36,909,647	83%
Other Expenses	1,954,429	233,560	2,187,989	1,692,590	167,572	1,860,162	85%
Total Expenses	147,098,304	16,727,566	163,825,870	122,721,027	8,693,557	131,414,585	80%

Net Operating (Profit)/Loss	(32,211,591)	17,963,190	(14,248,400)	(22,212,212)	8,693,557	(13,518,655)

Net Operating Result Before Capital (Profit)/Loss	11,418,987	24,358,477	35,777,464	10,422,626	8,693,557	19,116,184

Cap/Reserve Movements
Capital Expenditure - One Off Confirmed	33,539,246	31,267,431	64,806,677	26,780,463	22,463,847	49,244,310	76%
Capital Expenditure - Recurrent	21,649,500	9,936,494	31,585,995	13,164,298	47,846,694	61,010,992	193%
Capital Expenditure - Pending Projects	38,732,266	(37,984,161)	748,105	32,897	83,400	116,297	0%
Loan Repayments	7,523,436	0	7,523,436	5,436,197	0	5,436,197	72%
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)	(981,753)	0	(981,753)	26%
Net Movements Reserves	(12,841,071)	(25,909,139)	(38,750,210)	0	0	0	0%
Total Cap/Res Movements	76,503,167	(17,963,190)	58,539,977	44,432,103	70,393,941	114,826,043

Net Result after Depreciation	44,291,577	(0)	44,291,577	22,219,890	79,087,498	101,307,388

Add back Depreciation Expense	44,291,577	0	44,291,577	36,909,647	0	36,909,647	83%

Cash Budget (Surplus)/Deficit	0	0	0	(14,689,757)	79,087,498	64,397,741

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

Description	Budget 2024/25	Budget 2025/26	Budget 2026/27	Budget 2027/28	Budget 2028/29	Budget 2029/30	Budget 2030/31	Budget 2031/32	Budget 2032/33
Adopted Bottom Line (Surplus) / Deficit	706,102	2,769,193	2,225,767	0	0	0	0	0	(953,513)
Adopted Bottom Line Adjustments	0	0	0	0	0	0	0	0	0
Revised Bottom Line (Surplus) / Deficit	706,102	2,769,193	2,225,767	0	0	0	0	0	(953,513)

* Please note that Council has recently reviewed the 2024/25 Long Term Financial Plan, with the draft plan currently on public exhibition. The above table is the current adopted position and not the draft plan not yet adopted.

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 April 2024

$0K

Proposed Revised Budget result for 30 April 2024 - (Surplus) / Deficit

$0K

The proposed Operating and Capital Budget Variations for 30 April 2024 which affect the current 2023/24 financial year are listed below.

*Budget Variation*	*Amount*	*Funding Source*		*Net Impact* *(Fav)/ Unfav*
*2 – Safe and Healthy Community*
Chapel Refurbishment	$170K	Cemetery Reserve ($170K)	Nil
Funds are required to undertake a Chapel Refurbishment at the Cemetery. The Chapel was constructed in January 1983 and Council Officers have been receiving feedback that a refurbishment is required. The presentation of the facility is dated and improving the facility will benefit the community. The works proposed are repainting, new chairs, artworks, audio visual equipment and recarpeting. It is proposed to fund the works from the Cemetery Reserve. Estimated Completion: 31 August 2024 Job Consolidation: 23103
Elsa Dixon Aboriginal Employment Grant	$40K	Training Services NSW Grant Income ($40K)	Nil
Council has been successful in securing a one-off funding allocation from Training Services NSW – Elsa Dixon Employment Grant for the Property Management division. The Elsa Dixon Aboriginal Employment Grant supports Aboriginal people through the creation of training and employment opportunities. Promoting diversity, innovation and service responsiveness in the NSW workforce, the Elsa Dixon Aboriginal Employment Grant subsidises the salary, development and support costs of Aboriginal employees in public service agencies and local government authorities. Estimated Completion: 30 June 2025 Job Consolidation: 23111
*5 – The Environment*
Civic Centre Office Renovations	$16K	Operational Savings ($16K)	Nil
Funds are required for minor internal building modifications to allow for the relocation of staff within the building. The works will involve the removal of a section of wall to open the area up for more natural light, plastering, painting and other minor required works. It is proposed to fund the works from existing operational savings. Estimated Completion: 30 June 2024 Job Consolidation:23109

2023/24 Capital Works Summary

Capital Works	Approved Budget	Proposed Movement	Proposed Budget
One-off	$64,806,677	$170,000	$64,976,677
Recurrent	$31,585,994	$0	$31,585,994
Pending	$748,105	$0	$748,105
Total Capital Works	$97,140,776	$170,000	$97,310,776

Current Restrictions

RESERVES SUMMARY
30 APRIL 2024
	CLOSING BALANCE 2022/23	ADOPTED RESERVE TRANSFERS 2023/24	BUDGET VARIATIONS APPROVED UP TO COUNCIL MEETING 29.4.2024	PROPOSED CHANGES for Council Resolution	BALANCE AS AT 30 APRIL 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	(972,403)		(8,464,253)
Sewer Fund	(45,473,006)	(486,810)	(1,014,994)		(46,974,809)
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	5,576,473	87,244	(124,786,002)

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	325,413		(1,268,412)
CCTV	(47,471)	12,476	0		(34,995)
Cemetery	(1,246,587)	(240,585)	30,437	170,000	(1,286,735)
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)

	CLOSING BALANCE 2022/23	ADOPTED RESERVE TRANSFERS 2023/24	BUDGET VARIATIONS APPROVED UP TO COUNCIL MEETING 29.4.2024	PROPOSED CHANGES for Council Resolution*	BALANCE AS AT 30 APRIL 2023
Net Zero Emissions	(309,016)	(44,492)	231,112		(122,397)
Oasis Reserve	(1,324,304)	172,650	222,748		(928,906)
Parks & Recreation Projects	(1,061,367)	(137,862)	706,268		(492,962)
Parks Water	(180,000)	(150,000)	0		(330,000)
Planning Legals	(100,000)	(20,000)	0		(120,000)
Plant Replacement	(4,023,265)	128,993	2,370,501		(1,523,772)
Project Carryovers	(6,990,324)	0	6,990,324		0
Public Art	(238,510)	30,000	159,177		(49,332)
Service Reviews	(100,000)	0	0		(100,000)
Sister Cities	(30,590)	0	0		(30,590)
Stormwater Drainage	(110,178)	0	0		(110,178)
Strategic Real Property	(1,723,844)	0	(1,806,417)		(3,530,261)
Subdivision Tree Planting	(348,173)	20,000	0		(328,173)
Unexpended External Loans	(1,870,017)	136,612	1,541,428		(191,977)
Workers Compensation	(194,670)	25,000	9,520		(160,149)
Total Internally Restricted	(66,310,882)	2,737,751	29,587,676	322,757	(33,662,697)

Total Restricted	(206,771,562)	12,748,713	35,164,149	410,001	(158,448,699)

Total Unrestricted	(11,502,000)	0	0	0	(11,502,000)

Total Cash, Cash Equivalents, and Investments	(218,273,562)	12,748,713	35,164,149	410,001	(169,950,699)

*These amounts relate to 29 April 2024 Council meeting adopted budget variations that impact on the draft 2024/25 Long Term Financial Plan that is currently on public exhibition and will be updated 1 July 2024 as advised previously.

Investment Summary as at 30 April 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 31/03/2024 $	Closing Balance Invested 30/04/2024 $	April EOM Current Yield %	April EOM % of Portfolio	Investment Date	Maturity Date	Term (months)
*At Call Accounts*
NAB	AA-	568,111	681,825	4.35%	0.31%	N/A	N/A	N/A
CBA	AA-	1,380,280	2,930,488	4.35%	1.31%	N/A	N/A	N/A
CBA	AA-	16,999,137	7,562,662	4.40%	3.39%	N/A	N/A	N/A
Macquarie Bank	A+	9,610,329	9,647,197	4.15%	4.32%	N/A	N/A	N/A
*Total At Call Accounts*		28,557,857	20,822,172	4.28%	9.32%
*Short Term Deposits*
AMP	BBB+	1,000,000	1,000,000	5.40%	0.45%	15/11/2023	15/11/2024	12
Australian Military Bank	BBB+	1,000,000	1,000,000	5.06%	0.45%	24/05/2023	24/05/2024	12
Australian Unity	BBB+	1,000,000	1,000,000	5.44%	0.45%	8/06/2023	11/06/2024	12
ING Bank	A	2,000,000	2,000,000	5.62%	0.90%	26/06/2023	26/06/2024	12
ING Bank	A	2,000,000	2,000,000	5.65%	0.90%	30/06/2023	28/06/2024	12
Heritage and People's Choice	BBB+	1,000,000	1,000,000	5.80%	0.45%	10/07/2023	10/07/2024	12
CBA	AA-	2,000,000	2,000,000	5.27%	0.90%	31/08/2023	30/08/2024	12
Australian Unity	BBB+	1,000,000	1,000,000	5.49%	0.45%	27/11/2023	27/11/2024	12
Suncorp	A+	2,000,000	2,000,000	5.46%	0.90%	30/11/2023	29/11/2024	12
ING Bank	A	1,000,000	1,000,000	5.46%	0.45%	30/11/2023	29/11/2024	12
BankVic	BBB+	1,000,000	1,000,000	5.45%	0.45%	4/12/2023	4/12/2024	12
AMP	BBB+	2,000,000	2,000,000	5.35%	0.90%	14/12/2023	16/12/2024	12
Australian Unity	BBB+	1,000,000	1,000,000	5.19%	0.45%	30/01/2024	30/01/2025	12
Suncorp	A+	1,000,000	1,000,000	5.12%	0.45%	7/03/2024	7/03/2025	12
*Total Short Term Deposits*		19,000,000	19,000,000	5.43%	8.51%
*Medium Term Deposits*
BOQ	A-	1,000,000	1,000,000	3.78%	0.45%	1/06/2022	3/06/2024	24
Westpac	AA-	2,000,000	2,000,000	1.32%	0.90%	28/06/2021	29/06/2026	60
Westpac	AA-	2,000,000	2,000,000	1.80%	0.90%	15/11/2021	17/11/2025	48
ICBC	A	2,000,000	2,000,000	2.03%	0.90%	6/11/2019	6/11/2024	60
ICBC	A	2,000,000	2,000,000	1.83%	0.90%	28/11/2019	28/11/2024	60
BOQ	A-	1,000,000	1,000,000	2.00%	0.45%	28/02/2020	28/02/2025	60
Police Credit Union	NR	1,000,000	1,000,000	2.20%	0.45%	1/04/2020	1/04/2025	60
ICBC	A	1,000,000	1,000,000	1.85%	0.45%	29/05/2020	29/05/2025	60
ICBC	A	1,000,000	1,000,000	1.86%	0.45%	1/06/2020	2/06/2025	60
ICBC	A	2,000,000	2,000,000	1.75%	0.90%	25/06/2020	25/06/2025	60
ICBC	A	2,000,000	2,000,000	1.75%	0.90%	25/06/2020	25/06/2025	60
ICBC	A	2,000,000	2,000,000	1.60%	0.90%	29/06/2020	28/06/2024	48
ICBC	A	3,000,000	3,000,000	5.07%	1.34%	30/06/2022	30/06/2027	60
ICBC	A	2,000,000	2,000,000	1.42%	0.90%	7/07/2020	8/07/2024	48
ICBC	A	2,000,000	2,000,000	1.50%	0.90%	17/08/2020	18/08/2025	60
BoQ	A-	1,000,000	1,000,000	1.25%	0.45%	7/09/2020	8/09/2025	60
BoQ	A-	2,000,000	2,000,000	1.25%	0.90%	14/09/2020	15/09/2025	60
NAB	AA-	1,000,000	1,000,000	5.23%	0.45%	14/09/2023	16/09/2024	12
ICBC	A	1,000,000	1,000,000	1.20%	0.45%	7/12/2020	8/12/2025	60
NAB	AA-	2,000,000	2,000,000	0.95%	0.90%	29/01/2021	29/01/2026	60
NAB	AA-	1,000,000	1,000,000	1.08%	0.45%	22/02/2021	20/02/2026	60
NAB	AA-	2,000,000	2,000,000	1.25%	0.90%	3/03/2021	2/03/2026	60
NAB	AA-	2,000,000	2,000,000	1.40%	0.90%	21/06/2021	19/06/2026	60
Westpac	AA-	2,000,000	2,000,000	1.32%	0.90%	25/06/2021	25/06/2026	60
ICBC	A	1,000,000	1,000,000	1.32%	0.45%	25/08/2021	25/08/2026	60
AMP	BBB+	2,000,000	2,000,000	1.00%	0.90%	18/10/2021	17/10/2024	36
Westpac	AA-	2,000,000	2,000,000	1.56%	0.90%	30/11/2021	29/11/2024	36
Westpac	AA-	2,000,000	2,000,000	2.00%	0.90%	8/02/2022	10/02/2025	36
P&N Bank	BBB+	2,000,000	2,000,000	2.40%	0.90%	9/03/2022	10/03/2025	36
P&N Bank	BBB+	2,000,000	2,000,000	4.90%	0.90%	11/03/2024	11/03/2026	24
MyState	BBB	2,000,000	2,000,000	2.20%	0.90%	2/03/2022	3/03/2025	36
CBA	AA-	2,000,000	0	0.00%	0.00%	26/04/2022	26/04/2024	24
CBA	AA-	2,000,000	2,000,000	3.78%	0.90%	4/05/2022	6/05/2024	24
CBA	AA-	2,000,000	2,000,000	3.99%	0.90%	4/05/2022	5/05/2025	36
ING Bank	A	1,000,000	1,000,000	3.76%	0.45%	23/05/2022	23/05/2024	24
ICBC	A	2,000,000	2,000,000	3.95%	0.90%	6/06/2022	6/06/2024	24
Australian Unity	BBB+	2,000,000	2,000,000	4.15%	0.90%	8/06/2022	11/06/2024	24
MyState	BBB	2,000,000	2,000,000	4.45%	0.90%	29/06/2022	28/06/2024	24
BoQ	A-	1,000,000	1,000,000	4.50%	0.45%	7/07/2022	7/07/2025	36
CBA	AA-	1,000,000	1,000,000	4.25%	0.45%	12/08/2022	12/08/2025	36
P&N Bank	BBB+	3,000,000	3,000,000	4.55%	1.34%	29/08/2022	29/08/2025	36
Australian Military Bank	BBB+	2,000,000	2,000,000	4.55%	0.90%	2/09/2022	2/09/2025	36
P&N Bank	BBB+	1,000,000	1,000,000	4.40%	0.45%	9/09/2022	9/09/2025	36
BoQ	A-	1,000,000	1,000,000	4.70%	0.45%	4/10/2022	4/10/2024	24
AMP	BBB+	2,000,000	2,000,000	4.95%	0.90%	21/10/2022	21/10/2024	24
ICBC	A	2,000,000	2,000,000	5.20%	0.90%	21/10/2022	21/10/2025	36
AMP	BBB+	1,000,000	1,000,000	4.75%	0.45%	15/11/2022	14/11/2024	24
AMP	BBB+	1,000,000	1,000,000	4.80%	0.45%	21/11/2022	20/11/2025	36
P&N Bank	BBB+	2,000,000	2,000,000	4.75%	0.90%	16/12/2022	16/12/2024	24
Police Credit Union	NR	2,000,000	2,000,000	5.04%	0.90%	15/02/2023	17/02/2025	24
Police Credit Union	NR	2,000,000	2,000,000	4.94%	0.90%	14/03/2023	14/03/2025	24
P&N Bank	BBB+	2,000,000	2,000,000	5.00%	0.90%	14/03/2023	15/03/2027	48
Hume Bank	BBB+	2,000,000	2,000,000	4.75%	0.90%	31/03/2023	31/03/2025	24
Auswide	BBB	2,000,000	2,000,000	4.95%	0.90%	13/04/2023	13/04/2026	36
P&N Bank	BBB+	2,000,000	2,000,000	5.20%	0.90%	20/04/2023	20/04/2027	48
P&N Bank	BBB+	1,000,000	1,000,000	5.20%	0.45%	26/05/2023	26/05/2026	36
ING Bank	A	2,000,000	2,000,000	5.37%	0.90%	21/08/2023	21/08/2025	24
P&N Bank	BBB+	1,000,000	1,000,000	5.45%	0.45%	30/11/2023	28/11/2025	24
ING Bank	A	2,000,000	2,000,000	5.20%	0.90%	14/12/2023	15/12/2025	24
ING Bank	A	2,000,000	2,000,000	5.14%	0.90%	3/01/2024	5/01/2026	24
P&N Bank	BBB+	2,000,000	2,000,000	5.10%	0.90%	4/01/2024	4/01/2027	36
Suncorp	A+	1,000,000	1,000,000	5.08%	0.45%	8/01/2024	8/01/2026	24
Australian Unity	BBB+	1,000,000	1,000,000	4.93%	0.45%	7/03/2024	9/03/2026	24
ING Bank	A	0	2,000,000	5.10%	0.90%	23/04/2024	24/04/2028	48
*Total Medium Term Deposits*		107,000,000	107,000,000	3.40%	47.91%
*Floating Rate Notes - Senior Debt*
Westpac	AA-	2,520,498	2,530,587	BBSW + 88	1.13%	16/05/2019	16/08/2024	63
Suncorp	A+	1,261,844	1,251,189	BBSW + 78	0.56%	30/07/2019	30/07/2024	60
ANZ	AA-	2,011,387	2,020,093	BBSW + 77	0.90%	29/08/2019	29/08/2024	60
HSBC	AA-	2,505,524	2,516,312	BBSW + 83	1.13%	27/09/2019	27/09/2024	60
ANZ	AA-	1,520,229	1,507,247	BBSW + 76	0.67%	16/01/2020	16/01/2025	60
NAB	AA-	2,025,732	2,008,301	BBSW + 77	0.90%	21/01/2020	21/01/2025	60
Newcastle Permanent	BBB+	1,109,679	1,115,073	BBSW + 112	0.50%	4/02/2020	4/02/2025	60
Macquarie Bank	A+	2,018,997	2,028,302	BBSW + 84	0.91%	12/02/2020	12/02/2025	60
BOQ Covered	AAA	556,168	558,926	BBSW + 107	0.25%	14/05/2020	14/05/2025	60
UBS	A+	1,515,338	1,503,443	BBSW + 87	0.67%	30/07/2020	30/07/2025	60
CBA	AA-	2,020,746	2,005,842	BBSW + 70	0.90%	14/01/2022	14/01/2027	60
Rabobank	A+	2,013,217	1,998,449	BBSW + 73	0.89%	27/01/2022	27/01/2027	60
Newcastle Permanent	BBB+	996,052	1,002,019	BBSW + 100	0.45%	10/02/2022	10/02/2027	60
NAB	AA-	2,411,474	2,424,425	BBSW + 72	1.09%	25/02/2022	25/02/2027	60
Bendigo-Adelaide	A-	1,657,247	1,665,431	BBSW + 98	0.75%	17/03/2022	17/03/2025	36
ANZ	AA-	2,028,374	2,038,017	BBSW + 97	0.91%	12/05/2022	12/05/2027	60
NAB	AA-	1,715,104	1,724,156	BBSW + 90	0.77%	30/05/2022	30/05/2025	36
Suncorp	A+	909,401	913,705	BBSW + 93	0.41%	22/08/2022	22/08/2025	36
ANZ	AA-	2,557,467	2,568,517	BBSW + 120	1.15%	4/11/2022	4/11/2027	60
NAB	AA-	2,551,660	2,560,692	BBSW + 120	1.15%	25/11/2022	25/11/2027	60
Suncorp	A+	1,116,124	1,122,502	BBSW + 125	0.50%	14/12/2022	14/12/2027	60
CBA	AA-	2,044,866	2,029,779	BBSW + 115	0.91%	13/01/2023	13/01/2028	60
Bank Australia	BBB+	1,918,849	1,928,708	BBSW + 155	0.86%	22/02/2023	22/02/2027	48
Bendigo-Adelaide Covered	AAA	1,007,548	1,012,629	BBSW + 115	0.45%	16/06/2023	16/06/2028	60
CBA	AA-	2,522,110	2,539,833	BBSW + 95	1.14%	17/08/2023	17/08/2028	60
ANZ	AA-	2,111,313	2,124,869	BBSW + 93	0.95%	11/09/2023	11/09/2028	60
Bank Australia	BBB+	1,668,898	1,653,839	BBSW + 150	0.74%	30/10/2023	30/10/2026	36
ANZ	AA-	2,522,292	2,541,926	BBSW + 96	1.14%	5/02/2024	5/02/2029	60
ANZ	AA-	1,001,643	1,007,824	BBSW + 98	0.45%	19/03/2024	19/03/2029	60
ING Bank	A	500,882	503,904	BBSW + 95	0.23%	22/03/2024	22/03/2027	36
BoQ	A-	0	1,652,259	BBSW + 128	0.74%	30/04/2024	30/04/2029	60
*Total Floating Rate Notes - Senior Debt*		52,320,662	54,058,799		24.21%
*Fixed Rate Bonds*
ING Covered	AAA	691,613	688,123	1.10%	0.31%	19/08/2021	19/08/2026	60
Northern Territory Treasury	AA-	3,000,000	3,000,000	1.00%	1.34%	24/08/2021	16/12/2024	40
Northern Territory Treasury	AA-	3,000,000	3,000,000	1.50%	1.34%	24/08/2021	15/12/2026	64
BoQ	A-	1,780,828	1,753,854	2.10%	0.79%	27/10/2021	27/10/2026	60
BoQ	A-	0	1,979,542	5.30%	0.89%	30/04/2024	30/04/2029	60
Northern Territory Treasury	AA-	2,000,000	2,000,000	1.50%	0.90%	6/08/2021	15/12/2026	64
Northern Territory Treasury	AA-	1,000,000	1,000,000	1.50%	0.45%	14/07/2021	15/12/2026	65
Northern Territory Treasury	AA-	2,000,000	2,000,000	1.30%	0.90%	29/04/2021	15/06/2026	61
Northern Territory Treasury	AA-	2,000,000	2,000,000	1.00%	0.90%	30/11/2020	15/12/2025	60
Northern Territory Treasury	AA-	1,000,000	1,000,000	1.00%	0.45%	20/11/2020	15/12/2025	61
Northern Territory Treasury	AA-	2,000,000	2,000,000	1.00%	0.90%	21/10/2020	15/12/2025	62
*Total Fixed Rate Bonds*		18,472,441	20,421,519	1.69%	9.14%
*Managed Funds*
NSW Tcorp	NR	2,073,713	2,018,285	-2.67%	0.90%	17/03/2014	1/04/2029	180
*Total Managed Funds*		2,073,713	2,018,285	-2.67%	0.90%
TOTAL CASH ASSETS, CASH EQUIVALENTS & INVESTMENTS		227,424,673	223,320,774		100.00%
LESS: RIVERINA REGIONAL LIBRARY (RRL) CASH AT BANK		2,490,713	2,486,351
TOTAL WWCC CASH ASSETS, CASH EQUIVALENTS & INVESTMENTS		224,933,960	220,834,423

Council’s investment portfolio is dominated by Term Deposits, equating to approximately 57% of the portfolio across a broad range of counterparties. Cash equates to 9%, with Floating Rate Notes (FRNs) around 24%, fixed rate bonds around 9% and growth funds around 1% of the portfolio.

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

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

Investment Portfolio Balance

Council’s investment portfolio balance decreased over the past month, down from $224.93M to $220.83M. This decrease is reflective of Council paying a number of contract payments for works completed throughout the month.

Monthly Investment Movements

Redemptions/Sales – Council redeemed/sold the following investment security during April 2024:

Institution and Type	Amount	Investment Term	Interest Rate	Comments
CBA (AA-) Term Deposit	$2M	2 years	3.28%	This term deposit was redeemed on maturity and these funds were reinvested in a new 4-year ING Bank term deposit (as below).

Institution and Type

Amount

Investment

Term

Interest

Rate

Comments

CBA (AA-) Term Deposit

$2M

2 years

3.28%

This term deposit was redeemed on maturity and these funds were reinvested in a new 4-year ING Bank term deposit (as below).

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

Institution and Type	Amount	Investment Term	Interest Rate	Comments
ING Bank (A) Term Deposit	$2M	4 years	5.10%	The ING Bank rate of 5.10% compared favourably to the rest of the market for this term. The next best rate for this term was 5.00%.
Bank of Queensland (A-) Floating Rate Note	$1.65M	5 years	BBSW +128bps	Council’s independent Investment Advisor advised this Floating Rate Note represented good value with a potential grossed-up value of +140-145bps after 3-3.5 years.
Bank of Queensland (A-) Fixed Rate Bond	$2M	5 years	5.30%	Council’s independent Investment Advisor advised this Fixed Rate Bond represented good value with a fixed interest rate above those that can be received from current term deposit investments. Potential to hold this investment to maturity.

Rollovers – Council did not rollover any investment securities during April 2024.

Monthly Investment Performance

Interest/growth/capital gains/(losses) for the month totalled $686,782, which compares favourably with the budget for the period of $384,865 - outperforming budget for the month by $301,917.

Council’s outperformance to budget for April 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 negative return on its NSW T-Corp Managed Fund for the month of April, with the fund returning -2.67% (or -$55,429) as domestic (-2.94%) and international (-3.85%) shares gave up some of their recent gains. This negative return for the fund follows five consecutive months of positive returns.

In comparison to the AusBond Bank Bill Index* of 4.37% (annualised), Council’s investment portfolio returned 3.48% (annualised) for the month of April. 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. The NSW T-Corp Managed Fund was also a contributor to losses this month, with the Fund falling -2.67% after five consecutive months of positive returns.

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 3.17%, marginally underperforming the AusBond Bank Bill index by -0.48%. Councils investment portfolio has continued to outperform the AusBond Bank Bill Index* over the longer-term time period, returning 2.53% per annum over the past 3 years – outperforming the benchmark by 0.34% 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

I hereby certify that all of the above investments have been made in accordance with the provision of Section 625 of the Local Government Act 1993 and the regulations there under, and in accordance with the Investment Policy adopted by Council on 11 December 2023.

Carolyn Rodney

Responsible Accounting Officer

Policy and Legislation

Budget variations are reported in accordance with Council’s POL 052 Budget Policy.

Investments are reported in accordance with Council’s POL 075 Investment Policy.

Local Government Act 1993

Section 625 - How may councils invest?

Local Government (General) Regulation 2021

Section 212 - Reports on council investments

Link to Strategic Plan

Community leadership and collaboration

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

Our leaders represent our community

Risk Management Issues for Council

This report is a control mechanism that assists in addressing the following potential risks to Council:

· Loss of investment income or capital resulting from ongoing management of investments, especially during difficult economic times

· Failure to demonstrate to the community that its funds are being expended in an efficient and effective manner

Internal / External Consultation

All relevant areas within Council have consulted with the Finance Division in relation to the budget variations listed in this report.

The Finance Division has consulted with relevant external parties to confirm Council’s investment portfolio balances.

Attachments

1 ⇩.

Capital Works Program 2023/24 to 2032/33

Applicant	Maslin Homes Pty Limited
Owner	James Francis McIntyre and Dellys Annette McIntyre
Development Cost	$3,200,000
Development Description	Multi dwelling housing (9 two storey attached dwellings) including vehicle movement area and carparking

1.	DA23/0676 - Plans - Provided under separate cover
2 .	DA23/0676 - Submitted SEE - Provided under separate cover
3 .	DA23/0676 - s4.15 report - Provided under separate cover

Land use	Narrung STP (Parcel C)	Marrambidya Wetland (Parcel B)	Marrambidya Wetland (Parcel D)
Reserve purpose (CLM)	Sewerage	Public Recreation	Educational and Community Purpose
Classification (LG)	Operational	Community	Community
Category (LG)	General Use Community	Natural Area - Bushland	General Use Community

Section 356 Budget Summary
2023/24 Budget available for requests received during financial year	$42,060.00
Total of fee waivers approved to date	($18,231.14)
Revised Balance of Section 356 fee waiver financial assistance	$23,828.86
1) Snowy Valley Council - Puggles children’s services mobile van	($10,000.00)
Subtotal Fee Waivers included in this report – proposed to be funded from the Section 356 Budget	($10,000.00)
Balance of Section 356 fee waiver financial assistance budget for the remainder of the 2023/24 Financial Year	$13,828.86