finance and governance committee agenda no. 4/16...may 17, 2016 · updated as at 30 june 2015. the...

Finance and Governance Committee AGENDA NO. 4/16

Meeting Date: Tuesday 17 May 2016 Location: Committee Room 2, Level 5, Civic Centre, 1 Devlin Street, Ryde Time: 6.00pm

NOTICE OF BUSINESS

Item Page

1 CONFIRMATION OF MINUTES - Finance and Governance Committee

Meeting held on 19 April 2016 .......................................................................... 1 2 INVESTMENT REPORT - April 2016 ............................................................... 6 3 MARCH QUARTERLY REVIEW REPORT - FOUR YEAR DELIVERY

PLAN 2015-2019 AND 2015/2016 OPERATIONAL PLAN............................. 33 4 LOCAL GOVERNMENT REMUNERATION TRIBUNAL

DETERMINATION - Councillors and Mayoral fees for 2016/17 ..................... 48 5 HISTORICAL GRANTS (COMMUNITY AID) REVIEW .................................. 64 6 COMMUNITY HALLS AND MEETING ROOMS HIRE POLICY ..................... 86

CONFIDENTIAL ITEMS

7 ADVICE ON COURT ACTIONS ................................................................... 101

Finance and Governance Committee Page 1

Agenda of the Finance and Governance Committee Report No. 4/16, dated Tuesday 17 May 2016.

1 CONFIRMATION OF MINUTES - Finance and Governance Committee Meeting held on 19 April 2016

Report prepared by: Senior Coordinator - Governance File No.: CLM/16/1/5/2 - BP16/429

REPORT SUMMARY

In accordance with Council’s Code of Meeting Practice, a motion or discussion with respect to such minutes shall not be in order except with regard to their accuracy as a true record of the proceedings.

RECOMMENDATION:

That the Minutes of the Finance and Governance Committee 3/16, held on 19 April 2016, be confirmed.

ATTACHMENTS 1 MINUTES - Finance and Governance Committee Meeting - 19 April 2016


ITEM 1 (continued) ATTACHMENT 1


Finance and Governance Committee MINUTES OF MEETING NO. 3/16

Meeting Date: Tuesday 19 April 2016 Location: Committee Room 2, Level 5, Civic Centre, 1 Devlin Street, Ryde Time: 6.00pm Councillors Present: Councillors Pendleton (Chairperson), Etmekdjian, Perram and Simon. Apologies: Nil.

Leave of Absence: Councillor Chung.

Staff Present: Acting Director – Corporate and Community Services, Acting Director –

City Strategy and Planning, Director – City Works and Infrastructure, Acting Manager – Communications, Customer Service and Events, Acting Chief Financial Officer, Senior Coordinator – Governance and Governance, Risk and Audit Coordinator. DISCLOSURES OF INTEREST

There were no disclosures of interest. 1 CONFIRMATION OF MINUTES - Finance and Governance Committee

Meeting held on 15 March 2016

RECOMMENDATION: (Moved by Councillors Perram and Etmekdjian) That the Minutes of the Finance and Governance Committee 2/16, held on 15 March 2016, be confirmed. Record of Voting:

For the Motion: Unanimous Note: This matter will be dealt with at the Council Meeting to be held on 26 APRIL 2016 in

accordance with the Finance and Governance Committee Terms of Reference in Council’s Code of Meeting Practice.




2 INVESTMENT REPORT - March 2016

RECOMMENDATION: (Moved by Councillors Simon and Perram)

That Council endorse the report of the Chief Financial Officer dated 1 April 2016 on Investment Report – March 2016. Record of Voting: For the Motion: Unanimous Note: This matter will be dealt with at the Council Meeting to be held on 26 APRIL 2016 in


3 DRAFT 2016/2020 FOUR YEAR DELIVERY PLAN INCLUDING DRAFT

2016/2017 ONE YEAR OPERATIONAL PLAN

RECOMMENDATION: (Moved by Councillors Perram and Simon) (a) That Council, pursuant to Sections 404 and 405 of the Local Government Act

1993, endorse the document titled "Draft Four-Year Delivery Plan 2016/2020 including One-Year Operational Plan 2016/2017", inclusive of the 2016/2017 Draft Budget, Fees and Charges and Capital Works Program, as its Draft Four-Year Delivery Plan 2016/2020 including One-Year Operational Plan 2016/2017 of the City of Ryde and as amended, as detailed in this report.

(b) That the Draft Four-Year Delivery Plan 2016/2020 including One-Year Operational Plan 2016/2017 be publicly exhibited for a period of not less than 28 days from 4 May 2016 to 14 June 2016.

(c) That following the public exhibition period detailed in part (b), Council consider

all public submissions at its meeting to be held on Tuesday, 21 June 2016 prior to formally adopting its Four-Year Delivery Plan 2016/2020 including the One-Year Operational Plan 2016/2017.

Record of Voting: For the Motion: Councillors Etmekdjian, Perram and Simon Against the Motion: Councillor Pendleton Note: This matter will be dealt with at the Council Meeting to be held on 26 APRIL 2016 in





4 SEMINAR INVITATION: MAYORS' WEEKEND, 21-22 MAY 2016

RECOMMENDATION: (Moved by Councillors Simon and Perram)

That Council determine the attendance of Councillors at the LGNSW Mayors’ Weekend seminar on 21-22 May 2016. Record of Voting: For the Motion: Unanimous Note: This matter will be dealt with at the Council Meeting to be held on 26 APRIL 2016 in


CLOSED SESSION ITEM 5 - ADVICE ON COURT ACTIONS Confidential This item is classified CONFIDENTIAL under Section 10A(2) of the Local Government Act, 1993, which permits the meeting to be closed to the public for business relating to the following: (g) advice concerning litigation, or advice as comprises a discussion of this matter, that would otherwise be privileged from production in legal proceedings on the ground of legal professional privilege. RESOLUTION: (Moved by Councillors Simon and Perram) That the Committee resolve into Closed Session to consider the above matter. Record of Voting: For the Motion: Unanimous Note: The Committee closed the meeting at 6.19pm. The public and media left the Committee Meeting Room. 5 ADVICE ON COURT ACTIONS

RECOMMENDATION: (Moved by Councillors Simon and Perram) That the report of the General Counsel be received.




Record of Voting: For the Motion: Unanimous Note: This matter will be dealt with at the Council Meeting to be held on 26 APRIL 2016 in


OPEN SESSION RESOLUTION: (Moved by Councillors Perram and Simon) That the Committee resolve itself into open Council. Record of Voting: For the Motion: Unanimous Note: Open Council resumed at 6.22pm.

The meeting closed at 6.22pm.

CONFIRMED THIS 17TH DAY OF MAY 2016.

Chairperson



2 INVESTMENT REPORT - April 2016

Report prepared by: Acting Chief Financial Officer File No.: FIM/07/6/4 - BP16/522

REPORT SUMMARY

This report details Council’s performance of its investment portfolio for April 2016 and compares it against key benchmarks. The report includes the estimated market valuation of Council’s investment portfolio, loan liabilities, and an update on Council’s legal action against various parties. Council’s financial year to date return is 3.29%, which is 1.04% above benchmark. Income from interest on investments and proceeds from sale of investments totals $5.2M, $281K above revised budget projections. An adjustment was made in the March Quarterly Budget Review, which recognised the increased revenue Council has received for Section 94 contributions.

RECOMMENDATION:

That Council endorse the report of the Chief Financial Officer dated 2 May 2016 on Investment Report – April 2016.

ATTACHMENTS 1 P10 Investment Report Attachment - April 2016 Report Prepared By: Jifeng Huang Acting Chief Financial Officer Report Approved By: Roy Newsome Acting Director - Corporate and Community Services


ITEM 2 (continued)


Discussion Council’s Responsible Accounting Officer, is required to report monthly on Council’s Investment Portfolio and certify that the Investments are held in accordance with Council’s Investment Policy and Section 625 of the Local Government Act. Investment Performance Commentary Council’s performance against the benchmark for returns of its investment portfolio for April 2016 and the past 12 months are as follows:

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16

Performance - All Investments

12 Mth W Avg 12 Mth Avg Benchmark

Monthly W Ave Incl Expired RBA Cash Rate

Council’s investment portfolio as at the end of April was as follows:

Cash/Term Deposits $123.1M 69.9% Floating Rate Notes $51.1M 29.0% Fixed Bonds $2.0M 1.1% Total Cash Investments $176.2M

Investment Properties $136.2M Total Investments $312.4M

Apr 12 Mth FYTD

Council Return 3.26 3.30 3.29

Benchmark 2.45 2.26 2.25

Variance 0.81 1.04 1.04


ITEM 2 (continued)


Council’s investment properties are shown in ATTACHMENT 1 and this table was updated as at 30 June 2015. The valuations listed have been undertaken in accordance with the revaluation process to ‘fair value’ by an independent valuer, in compliance with the Australian Accounting Standards. It should be noted that there are three properties, being air rights, the property at Reserve Street, West Ryde, and the Operations Centre in Constitution Road, Meadowbank, which have been revalued, however these values have not been incorporated into the value of the Investment Properties in the Financial Statements, as they do not fit the Accounting Standard criteria. This matter will be addressed with Council’s External Auditor as part of the Interim Audit to be undertaken in April 2016. Council continues to utilise the Federal Government’s current guarantee ($250K) investing in Term Deposits with a range of Authorised Deposit Taking Institutions (ADI’s) on short to medium term investments (generally 30 days to 180 days maturity) where more competitive rates are available. Whilst Council has moved some of its investment portfolio out to longer terms, to lock in future returns, it should be noted that there is approximately $73.1 million of Council’s funds held in internal reserves. Should Council consider utilising its internal reserves, this will have a direct impact on the amount of investment income that will be realised and will require a reduction in the future projected investment income and will place pressure on Council to be able to maintain its current level of expenditure on capital projects or maintenance. Council’s income from investments is above the revised projections, due mainly to Council receiving more funds from Section 94 contributions, with investment income for General Revenue remaining steady. Financial Security Reserve (FSR) The Financial Security Reserve has a balance of $4.32 million as at 30 April 2016 with a further payment in relation to the case against the CBA for the Oasis FRN, being received in January 2016. A detailed transaction history is included in ATTACHMENT 1.

Council has resolved to transfer all proceeds and interest earned on written down investments to this reserve. The finalisation of all of the Court action is taking longer than anticipated and the receipt of any proceeds from those actions will be transferred to this reserve. Other action that has commenced is noted in the Legal Issues section. Once all funds are received from all action, it would be prudent to return the funds to the Investment Property Reserve, from which the funds were originally taken to create this reserve.


ITEM 2 (continued)


Legal Issues The following update is provided in respect of Council’s legal action in these matters, which are still to be resolved. The team from Piper Alderman, led by Amanda Banton, moved to Squire Patton and Boggs, another firm of solicitors. The funders of Council’s legal action consented to their representation moving with Amanda Banton and her team, with Council supportive of this change as resolved at its meeting on 10 February 2015. Over the last 12 months additional legal action was commenced against rating agencies, as part of the original class action against the issuing bodies. The rating agencies are:

McGraw Hill Companies Inc.; and

Standard & Poor's International, LLC. Lehman / Grange IMP On Friday 21 September 2012, Justice Rares handed down the judgment in this matter, which was in favour of the Councils involved in this legal action. On 25 September 2013 the Federal Court approved the calling of a meeting of Scheme Creditors of Lehman Australia to consider the proposed Insurance Only Scheme. The applicants and group members in the Lehman Australia class action are Scheme Creditors. The Scheme is subject to Court approval. The application was listed for hearing on 31 October 2013. The Scheme was approved by the Court on 9 December 2013; all Scheme Creditors are now bound by the Scheme irrespective of whether they have voted for it or even if they voted against it. Council has received a counter offer from Lehman Brothers Australia Limited (in Liquidation), which was $27k less than the amount claimed. This offer has been accepted by the then Acting General Manager under delegated authority. The finalisation of the matter is pending, and the Supreme Court is to hand down a judgment in the 1st week April 2015, with the most recent update being that the total dividend to be paid will be between 20 and 40c in the dollar. Further updates will be provided by the liquidator once this occurs. The first dividend payment of 10.99c in the dollar was received on 30 September 2015. While the above court action has been proceeding, the related investments of the Lehman / Grange IMP (Merimbula and Global Bank Note) have been finalised and paid to Council. As previously reported, Council has received $752k for these investments representing full payment of the principal and interest.


ITEM 2 (continued)


Lehman / Grange IMP (Standard and Poor’s, and McGraw-Hill) The funding body continued the class action, and is part of the original funding agreement, but required taking out a separate action against McGraw Hill Companies Inc. and Standard & Poor's International, LLC. These actions commenced in August 2014. A recent update from Council’s funding body, IMF advises Council that S&P have not complied with the Court’s order to provide its evidence by 11 September 2015 and therefore this will see this matter further delayed. It is anticipated that this matter will be listed for a hearing date in August 2016. The Court has ordered S&P to complete its further discovery by 30 October 2015 and to provide its expert evidence by 7 December 2015. It is advised that the action against the McGraw Hill Companies and Standard & Poor’s, culminated in the Federal Court of Australia approving the settlement of these proceedings on 24 March 2016. As a result, Council’s General Manager has executed the Deeds of Covenant in respect of this matter on 2 May 2016, which is expected to see Council receiving its share of the settlement in the near future. LGFS – Rembrandt On 5 November 2012, Federal Court Justice Jayne Jagot ruled that Councils were entitled to succeed in their claim for damages against Local Government Financial Services (LGFS), ABN AMRO and Standard & Poor’s (S&P). This result vindicates Council’s Investment in this product with Justice Jayne Jagot finding that LGFS, ABN AMRO and S&P had collectively been responsible for misleading and deceptive conduct and negligent misrepresentation of this investment to Councils. On 1 March 2013, the Federal Court of Australia awarded compensation and costs to Councils against S&P. Council was awarded $933K principal (equivalent to the balance outstanding) and $331K in interest. Of this, 70% is payable to IMF Bentham for their funding of the legal action (including legal costs), resulting in a net benefit to Council of approximately $382K, which was paid to Council on 4 April 2013. A teleconference was held on 4 November 2013 with the other Councils involved to discuss GST issues, should a settlement be reached. The appeal has been heard in relation to this matter, and judgement handed down on Friday 6 June 2014, where the appeal was dismissed, and all the findings of the primary judge, Justice Jagot, were upheld.


ITEM 2 (continued)


Accordingly the Full Court held that each of LGFS, ABN Amro and S&P are individually liable for 100% of Council’s losses. The primary orders held them liable for one third each. Council has already received payment from each of the respondents, as indicated above. CBA – Oasis and Palladin Council has endorsed City of Ryde being a third party to an action against CBA in relation to the Oasis CDO investments for $1 million that Council has written down to zero. A mediation session occurred with CBA on 8 October 2013. The mediation was adjourned to allow certain steps to take place and the parties are continuing to engage in “without prejudice” discussions, and the outcome will not be known until mid-2015. These confidential discussions have been continuing and are close to being finalised and Councillors will be advised of the outcome when known. Any settlement out of these discussions will require Court approval, with the last step to be rescheduled due to delays with the settlement documentation. Whilst Council had written off the Oasis investment, the investment had one further default until it completely defaulted. As previously reported, Council sold the Oasis investment at 35.7 cents in the dollar on the remaining principal of $625K, being $223,337. Should Council be successful in this legal action, then this will be taken into account as part of any settlement. As part of this action, Council is also a party to action against CBA for its investment in the Palladin CDO, of which Council held $2 million. This investment defaulted in October 2008, and was written down to zero. Justice Foster has approved a proposed settlement with CBA, in relation to costs, with reasons due to be published in October 2015.

Payment of the initial dividend of $836K was received from Squire Patton Boggs on 18 December 2015.

CBA – Oasis and Palladin (Standard and Poors, and McGraw-Hill) This is a continuation of the class action against CBA for the Oasis and Palladin products, and is part of the original funding agreement, but requires the taking out of a separate action against McGraw Hill Companies Inc.; and Standard & Poor's International, LLC. Council endorsed in August 2015 to continue as a member of this further class action, under the original funding agreement. This is being filed to ensure that it is within the statute of limitations.


ITEM 2 (continued)


Loan Liability Council’s loan liability as at 30 April was $5.29 million which represents the balance of: 1. $6.8M 15 year loan drawn down in 2004 at 90 Day BBSW + 20 basis points for

the Civic Centre Redevelopment and refinancing the West Ryde Tunnel. The interest rate for this loan is reset every quarter;

2. $1.5M 10 year loan drawn down 31 January 2014 at 180 day BBSW +175 basis

points for the Children’s Play Implementation Plan, which was approved for an LIRS subsidy in Round 2. The interest rate for this loan is reset every six months;

3. $1.2M 7 year loan drawn down 31 January 2014 at 5.24% for construction of

the Surf Attraction at the RALC; and

4. $1.5M 10 year loan drawn down 1 September 2014 at 4.95% for Phase 2 of the Children’s Play Implementation Plan, which was approved for an LIRS subsidy in Round 3.

There is no advantage to Council in changing the arrangements or repaying the loan as detailed at point 1 above earlier than planned. Council is receiving a better rate of return on its investments than it is paying in interest on this loan. The following graph shows the gap between the average interest rate earned on Council’s term deposits (top line) compared to the interest rate applying to loan 1 above (bottom line). NB: This graph only compares the 2004 NAB loan.

2.00

2.20

2.40

2.60

2.80

3.00

3.20

3.40

3.60

Term Deposits/Loan Interest Rate Comparison

TDs Loan


ITEM 2 (continued)


Policy Limits

The following graph shows the limits, as a percentage of total cash investments, of the amounts by period, as allowed under Council’s policy, and comparing them to the amounts actually invested, as a percentage of total cash investments. It shows that the funds invested are within the limits set in the policy.

0% 20% 40% 60% 80% 100%

<1 year

> 1 year

3-5 yrs

Policy Limits on Maturities

Permissible Invested


ITEM 2 (continued)


INVESTMENT SUMMARY AS AT 30 APRIL 2016

Issuer Investment Name

Investment

Rating

Invested at

30-Apr-16

$000's

Annualised

Period

Return (%)

12 Month

Average Return

on Current

Investments

Return

since 01

July 2015

% of Total

Invested

Indicative

Market

Value **

$000's

% Market

Value

Westpac 1. Westpac At Call AA- 685 1.30 1.35 1.34 0.39 685 100.00%

Bank of Queensland 2. Bank of Queensland TD A- 2,000 3.14 3.12 3.08 1.14 2,000 100.00%

CBA 3. Bankwest Term Deposit

AA- 1,000 2.92 2.95 2.97 0.57 1,000 100.00%

AMP 4. AMP TD A 1,000 2.90 2.99 2.90 0.57 1,000 100.00%

MyState Bank 5. MyState Bank TD BBB 1,000 3.03 3.03 3.03 0.57 1,000 100.00%

NAB 6. NAB Term Deposit AA- 2,000 3.12 3.94 3.90 1.14 2,000 100.00%

P&N Bank 7. P&N Bank BBB 1,000 3.02 3.02 3.02 0.57 1,000 100.00%

CBA 8. Bankwest Term Deposit

AA- 2,000 2.90 2.89 2.90 1.14 2,000 100.00%

CBA 9. Bankwest TD AA- 2,000 3.03 2.99 2.99 1.14 2,000 100.00%

CBA 10. Bankwest Term

Deposit AA- 2,000 2.92 3.02 3.02 1.14 2,000 100.00%


QPCU Limited 12. QPCU Limited Unrated 1,000 3.00 2.99 2.99 0.57 1,000 100.00%

Bendigo and Adelaide Bank 13. Bendigo Bank TD A- 1,000 2.70 2.82 2.77 0.57 1,000 100.00%

Hunter United Credit Union 14. Hunter United Credit

Union TD Unrated 1,000 2.73 2.73 2.73 0.57 1,000 100.00%

CUA 15. Credit Union Australia

TD BBB+ 1,000 3.10 3.14 3.10 0.57 1,000 100.00%

Peoples Choice CU 16. Peoples Choice CU BBB+ 1,000 3.02 2.99 3.00 0.57 1,000 100.00%

Bendigo and Adelaide Bank 17. Rural Bank A- 1,000 6.48 6.48 6.48 0.57 1,000 100.00%

Banana Coast CU 18. Bananacoast CU TD Unrated 500 3.10 3.40 3.37 0.28 500 100.00%

CBA 19. CBA TD AA- 2,000 2.94 3.04 3.01 1.14 2,000 100.00%

CBA 20. Bankwest Term

Deposit AA- 2,000 3.03 2.95 2.93 1.14 2,000 100.00%

IMB 21. IMB TD BBB+ 1,000 2.80 2.90 2.79 0.57 1,000 100.00%

Auswide Bank 22. Auswide Bank TD BBB 1,000 2.98 2.98 2.98 0.57 1,000 100.00%

AMP 23. AMP Business Saver A 1,000 2.59 2.59 2.59 0.57 1,000 100.00%

CBA 24. CBA Term Deposit AA- 1,000 4.55 4.55 4.55 0.57 1,000 100.00%

Gateway CU 25. Gateway CU TD Unrated 1,000 2.93 2.93 2.93 0.57 1,000 100.00%

Newcastle Perm Bldg Soc 26. Newcastle Perm Bldg

Soc BBB+ 1,000 2.80 2.80 2.80 0.57 1,000 100.00%

Greater Bldg Soc 27. Greater Bldg Soc TD BBB 1,000 2.82 3.02 2.90 0.57 1,000 100.00%

Police CU (SA) 28. Police CU - SA Unrated 1,000 3.11 3.11 3.11 0.57 1,000 100.00%

Bank of Sydney 29. Bank of Sydney TD Unrated 500 3.12 3.12 3.12 0.28 500 100.00%

AMP 30. AMP TD A 1,000 2.85 3.00 2.99 0.57 1,000 100.00%

CBA 31. CBA TD AA- 1,000 4.15 4.15 4.15 0.57 1,000 100.00%

Heritage Bank 32. Heritage Bank A- 2,000 3.25 3.25 3.25 1.14 2,000 100.00%

CBA 33. CBA TD AA- 2,000 2.83 2.95 2.92 1.14 2,000 100.00%

Rabobank 34. Rabodirect At-call AA 5 2.32 2.33 2.32 0.00 5 100.00%

Me Bank 35. ME Bank At Call

Account BBB 811 2.52 2.50 2.49 0.46 811 100.00%

Westpac 36. Westpac FRN AA- 1,000 3.56 3.47 3.48 0.57 1,000 100.02%

CBA 37. CBA FRN AA- 999 3.73 3.62 3.62 0.57 1,002 100.24%

ING 38. ING TD A- 2,000 3.10 3.10 3.10 1.14 2,000 100.00%

ANZ 39. ANZ FRN AA- 1,000 3.76 3.67 3.68 0.57 1,000 100.02%

NAB 40. NAB Fixed MTN AA- 999 6.30 6.32 6.32 0.57 1,028 102.78%

Westpac 41. Westpac Fixed MTN AA- 999 6.21 6.17 6.16 0.57 1,028 102.83%

Macquarie Bank 42. Macquarie Bank TD A 500 6.50 6.50 6.50 0.28 500 100.00%

Bendigo and Adelaide Bank 43. Delphi Bank TD Unrated 250 6.05 6.05 6.05 0.14 250 100.00%

Bendigo and Adelaide Bank 44. Rural Bank TD A- 1,000 2.90 2.92 2.88 0.57 1,000 100.00%

Me Bank 45. ME Bank TD BBB+ 1,000 3.07 2.99 2.90 0.57 1,000 100.00%

Bank of Queensland 46. Bank of Queensland

TD A- 1,000 5.15 5.15 5.15 0.57 1,000 100.00%


TD A- 2,000 3.12 3.94 3.90 1.14 2,000 100.00%

BoQ Specialist 48. BoQ Specialist BBB+ 250 6.15 6.15 6.15 0.14 250 100.00%


ING 50. ING Floating Rate TD A- 1,000 4.70 4.61 4.61 0.57 1,000 100.00%

IMB 51. IMB TD BBB+ 2,000 2.80 2.80 2.80 1.14 2,000 100.00%


TD A- 2,000 3.55 3.35 3.40 1.14 2,000 100.00%

Me Bank 53. ME Bank TD BBB+ 1,000 3.07 2.96 2.95 0.57 1,000 100.00%

Beyond Bank 54. Beyond Bank TD BBB+ 1,500 3.07 3.07 3.07 0.85 1,500 100.00%

Goldfields Money Ltd 55. Goldfields Money Ltd

TD Unrated 1,000 2.87 2.87 2.87 0.57 1,000 100.00%


Bendigo and Adelaide Bank 57. Bendigo & Adelaide

Bank FRN A- 1,000 3.53 3.45 3.45 0.57 1,004 100.43%

CBA 58. CBA TD AA- 1,000 2.92 3.12 3.11 0.57 1,000 100.00%

CBA 59. CBA TD AA- 1,000 3.75 3.75 3.75 0.57 1,000 100.00%

NAB 60. NAB TD AA- 1,000 2.75 3.15 3.07 0.57 1,000 100.00%


ITEM 2 (continued)


Issuer Investment Name

Investment

Rating

Invested at

30-Apr-16

$000's

Annualised

Period

Return (%)

12 Month

Average Return

on Current

Investments

Return

since 01

July 2015

% of Total

Invested

Indicative

Market

Value **

$000's

% Market

Value


AMP 62. AMP Term Deposit A+ 2,000 3.30 3.30 3.30 1.14 2,000 100.00%

NAB 63. NAB TD AA- 2,000 3.09 3.34 3.28 1.14 2,000 100.00%

Bendigo and Adelaide Bank 64. Bendigo and Adelaide

Bank FRN A- 2,000 3.60 3.51 3.52 1.14 2,011 100.56%


Auswide Bank 66. Auswide Bank TD BBB 1,000 3.12 3.05 3.06 0.57 1,000 100.00%


Soc

BBB+ 1,000 3.03 3.03 3.03 0.57 1,000 100.00%

CUA 68. CUA FRN BBB+ 1,000 3.68 3.59 3.59 0.57 1,000 100.00%

Peoples Choice CU 69. Peoples Choice CU TD

BBB+ 1,000 2.94 2.88 2.89 0.57 1,000 100.00%

NAB 70. NAB Flexi TD 2 AA- 1,000 3.33 3.24 3.24 0.57 1,000 100.00%

Banana Coast CU 71. Bananacoast CU TD Unrated 1,000 2.98 3.22 2.98 0.57 1,000 100.00%


FRN A- 1,000 3.38 3.30 3.29 0.57 998 99.82%

AMP 73. AMP Notice Account A+ 1,056 2.73 2.74 2.73 0.60 1,056 100.00%

NAB 74. NAB TD AA- 2,000 2.97 3.09 2.98 1.14 2,000 100.00%

Police Bank 75. Police Bank FRN BBB+ 1,000 3.43 3.34 3.35 0.57 1,000 100.00%


Soc TD BBB+ 1,000 3.50 2.97 2.96 0.57 1,000 100.00%


CUA 78. CUA TD BBB+ 1,000 3.05 3.09 3.09 0.57 1,000 100.00%


Soc BBB+ 1,000 2.70 2.75 2.70 0.57 1,000 100.00%

P&N Bank 80. P&N Bank BBB 1,000 3.17 3.17 3.17 0.57 1,000 100.00%

ANZ 81. ANZ FRN AA- 2,000 3.16 3.08 3.08 1.14 1,994 99.70%

Me Bank 82. ME Bank FRN BBB+ 2,000 3.33 3.24 3.25 1.14 1,997 99.85%



QT Mutual Bank 85. Queensland Teachers

Mutual Bank FRN BBB+ 1,000 3.43 3.34 3.34 0.57 999 99.92%

Teachers Mutual Bank 86. Teachers Mutual Bank BBB+ 1,000 3.41 3.32 3.32 0.57 999 99.92%

MyState Bank 87. MyState Bank TD BBB 1,000 3.02 3.32 3.28 0.57 1,000 100.00%


NAB 89. NAB Flexi TD AA- 1,000 3.40 3.28 3.29 0.57 1,000 100.00%



Bendigo and Adelaide Bank 92. Rural Bank Ltd A- 1,000 3.05 2.97 2.95 0.57 1,000 100.00%

Macquarie Bank 93. Macquarie Bank FRN A 750 3.45 3.36 3.37 0.43 797 99.64%

CBA 94. CBA TD AA+ 2,000 2.98 3.01 2.98 1.14 2,000 100.00%


Soc FRN BBB+ 1,000 3.68 3.60 3.61 0.57 986 98.62%

Heritage Bank 96. Heritage Bank FRN BBB+ 1,000 3.48 3.39 3.39 0.57 994 99.42%


CBA 98. CBA FRN AA- 2,000 3.23 3.13 3.13 1.14 1,993 99.65%

Westpac 99. Westpac FRN AA- 1,000 3.20 3.12 3.12 0.57 996 99.64%

CBA 100. CBA TD AA- 2,000 2.84 2.84 2.84 1.14 2,000 100.00%

Bendigo and Adelaide Bank 101. Bendigo Bank FRN A- 1,000 3.43 3.36 3.36 0.57 990 98.97%

CBA 102. CBA TD AA- 2,000 2.92 2.82 2.82 1.14 2,000 100.00%

CBA 103. CBA TD AA- 2,000 2.83 2.84 2.84 1.14 2,000 100.00%

NAB 104. NAB TD AA- 2,000 3.12 3.05 3.05 1.14 2,000 100.00%

NAB 105. NAB Snr FRN AA- 3,976 3.31 3.26 3.26 2.26 3,971 99.27%

CBA 106. CBA FRN CBA 2,000 3.10 3.03 3.03 1.14 2,001 100.05%

Suncorp-Metway 107. Suncorp FRN A+ 800 3.58 3.51 3.51 0.45 801 100.08%

NAB 108. NAB FRN AA+ 2,000 3.41 3.36 3.36 1.14 2,006 100.29%

ANZ 109. ANZ Floating TD AA- 4,000 3.84 3.79 3.79 2.27 4,000 100.00%

MyState Bank 110. MyState TD BBB 2,000 3.07 3.07 3.07 1.14 2,000 100.00%

AMP 111. AMP FRN A+ 1,600 3.48 3.49 3.49 0.91 1,603 100.21%

Me Bank 112. Members Equity TD BBB+ 2,000 3.09 3.09 3.09 1.14 2,000 100.00%

CBA 113. CBA TD AA- 2,000 3.00 3.00 3.00 1.14 2,000 100.00%

ANZ 114. ANZ Flexi TD AA- 4,000 3.84 3.86 3.86 2.27 4,000 100.00%

CBA 115. CBA FRN AA- 4,000 3.49 3.48 3.48 2.27 4,021 100.52%

CBA 116. CBA FRN AA- 1,981 3.50 3.49 3.49 1.12 1,993 99.65%


CUA 118. CUA FRN BBB+ 2,000 3.94 3.94 3.94 1.14 2,003 100.14%

Newcastle Perm Bldg Soc 119. NPBS FRN BBB+ 1,000 3.96 3.96 3.96 0.57 1,000 100.00%

ANZ 120. ANZ FRN AA- 4,000 3.49 3.49 3.49 2.27 4,014 100.36%

176,161 3.26 3.26 3.24 100 176,296

Certificate of the Acting Chief Financial Officer (Responsible Accounting Officer)


ITEM 2 (continued)


*Monthly returns when annualised can appear to exaggerate performance

**Market valuations are indicative prices only, and do not necessarily reflect the price at which a transaction could be entered into.

Return including Matured/Traded Investments Apr 12 Mth FYTD

Weighted Average Return 3.26 3.30 3.29

Benchmark Return: AusBond Bank Bill Index (%) 2.45 2.26 2.25

Variance From Benchmark (%) 0.81 1.04 1.04

Investment Income

$000's

This Period 475

Financial Year To Date 5,179

Budget Profile 4,898

Variance from Budget - $ 281 I certify that as at the date of this report, the investments listed have been made and are held in compliance with Council’s Investment Policy and applicable legislation.

____ Jifeng Huang Date: 01/04/2016

Analysis of investments

The following graphs show analysis of the total cash investments by: Type of investment Institution Duration Rating


ITEM 2 (continued)


0% 5% 10% 15% 20% 25%

Westpac

Teachers Mutual Bank

Suncorp-Metway

Rabobank

QT Mutual Bank

QPCU Limited

Police CU (SA)

Police Bank

Peoples Choice CU

P&N Bank

Newcastle Perm Bldg Soc

NAB

MyState Bank

Me Bank

Macquarie Bank

ING

IMB

Hunter United Credit Union

Heritage Bank

Greater Bldg Soc

Goldfields Money Ltd

Gateway CU

CUA

CBA

BoQ Specialist

Beyond Bank

Bendigo and Adelaide Bank

Bank of Sydney

Bank of Queensland

Banana Coast CU

Auswide Bank

ANZ

AMP

Portfolio % With Institution

Active Investment by Institution

Summary by Investment Type

At Call Account Term Deposit

Floating Rate Notes Fixed Bonds

5M 10M 15M 20M 25M 30M 35M 40M 45M 50M

Cash

0-90 days

91-180 days

181-365 days

1-2 yrs

2-3 yrs

3-4 yrs

4-5 yrs

5-6 yrs

6-7 yrs

Summary by Duration

FRNs Fixed Bonds Cash TDs

0%

10

%

20

%

30

%

40

%

50

%

60

%

70

%

80

%

90

%

10

0%

AAA to AA-

A+ to A-

BBB+ to BBB-

Low/Unrated

Investment Summary by Rating

Actual Permitted

Portion of deposits covered by Federal Guaranteeare rated 'AAA'

<365 days >365 days

Cash/TDs $103.6M $19.5M

FRNs $4.0M $47.1M

Fixed Bonds $2.0M $0.0M

$109.6M $66.6M


ITEM 2 (continued)


Context

The recommendation is consistent with Section 625 of the Local Government Act, which deals with the investment of surplus funds by Councils. Financial Implications Income from interest on investments and proceeds from sales of investments totals $5.2M, being $281K above revised budget projections, with an adjustment being made in the March Quarterly Budget Review. The increase in interest is due mainly to Council receiving more funds for Section 94 contributions, and a settlement payment from CBA. The Financial Security Reserve has a current balance of $4.3 million.




Council’s Property Investment Portfolio

The following properties were held as part of Council’s Property Investment portfolio;

Property $' M

1A Station St, West Ryde 1.05

2 Dickson Ave, West Ryde 0.82

8 Chatham Rd, West Ryde 1.17

202 Rowe Street, Eastwood 2.95

226 Victoria Rd, Gladesville 0.30

7 Anthony Road, West Ryde Car Park site, West Ryde 4.76

7 Coulter Street, Coulter St Car Park, Gladesville 16.35

6-12 Glen Street, Glen Street Car Park, Eastwood 30.40

2 Pittwater Road, John Wilson Car Park, Gladesville 6.44

150 Coxs Road, Cox Rd Car Park, North Ryde 1.35

33-35 Blaxland Road, Argyle Centre, Ryde 6.50

19-21 Church Street and 16 Devlin Street, Ryde 3.52

741-747 Victoria Road, Ryde (Battery World) 1.88

53-71 Rowe Street, Eastwood 2.23

39 Church Street, Ryde 25.91

Total Investment Properties as per the Financial Statements 105.63

Herring Road Air Space Rights (1) 0.50

6 Reserve Street, West Ryde (2) 1.80

1 Constitution Road, Operations Centre, Meadowbank (3) 28.25

PROPERTIES HELD FOR RE-SALE 136.18

(1) This has been valued, but is yet to be brought to account within the Financial Statements. Discussion with the auditors did not clarify the situation.

(2) The value in the Financial Statements is currently zero, with the land being valued at $1.8m; this is due to the current construction of the new units. Once completed they will be revalued and the valuation updated.

(3) The value for this is currently held in Non-Current Assets in Note 9, and once vacated by Council; it will be transferred to

Investment Properties within the Financial Statements.

Benchmark The Australian UBS Bank Bill index is constructed as a benchmark to represent the performance of a passively managed short-term money market portfolio. It comprises thirteen Bank Bills of equal face value, each with a maturity seven days apart. The average term to maturity is approximately 45 days. A Bank Bill is a non-interest bearing security issued by a bank whereby the bank takes on an obligation to pay an investor a fixed amount (face value) at a fixed future date. It is sold to an investor at a discount to the face value. Bank Bills are short-term money market investments with maturities usually between 30 days and 180 days.




Types of Investments

The following are the types of investments held by Council: At Call refers to funds held at a financial institution, and can be recalled by Council either same day or on an overnight basis. A Floating Rate Note (FRN) is a debt security issued by a company with a variable interest rate. This can either be issued as Certificates of Deposit (CD) or as Medium Term Notes (MTN). The interest rate can be either fixed or floating, where the adjustments to the interest rate are usually made quarterly and are tied to a certain money market index such as the Bank Bill Swap Rate. A Fixed Rate Bond is a debt security issued by a company with a fixed interest rate over the term of the bond. Credit Rating Information

Credit ratings are generally a statement as to an institution’s credit quality. Ratings ranging from AAA to BBB- (long term) are considered investment grade. A general guide as to the meaning of each credit rating is as follows: AAA: the best quality companies, reliable and stable AA: quality companies, a bit higher risk than AAA A: economic situation can affect finance BBB: medium class companies, which are satisfactory at the moment BB: more prone to changes in the economy B: financial situation varies noticeably CCC: currently vulnerable and dependent on favourable economic conditions to

meet its commitments CC: highly vulnerable, very speculative bonds C: highly vulnerable, perhaps in bankruptcy or in arrears but still continuing to pay

out on obligations D: has defaulted on obligations and it is believed that it will generally default on

most or all obligations Note: Ratings from ‘AA’ to ‘CCC’ may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories.




Council’s Investment Powers

Council’s investment powers are regulated by Section 625 of the Local Government Act, which states: (1) A council may invest money that is not, for the time being, required by the

council for any other purpose. (2) Money may be invested only in a form of investment notified by order of the

Minister published in the Gazette. (3) An order of the Minister notifying a form of investment for the purposes of this

section must not be made without the approval of the Treasurer. (4) The acquisition, in accordance with section 358, of a controlling interest in a

corporation or an entity within the meaning of that section is not an investment for the purposes of this section.

Council’s investment policy requires that all investments are to be made in accordance with;

Local Government Act 1993 - Section 625

Local Government Act 1993 - Order (of the Minister) dated 12 January 2011

The Trustee Amendment (Discretionary Investments) Act 1997 – Sections 14A(2), 14C(1) & (2)

Local Government (Financial Management) Regulation 1993

Investment Guidelines issued by the Department of Local Government




Financial Security Reserve Transactional History

Starting Balance 8,000,000.00 10 Oct 2008

Write off Constellation (1,000,000.00) 10 Oct 2008

Write off Rembrandt (1,000,000.00) 10 Oct 2008

Write off Palladin (2,000,000.00) 10 Oct 2008

Write off Alpha (1,000,000.00) 30 Jun 2010

Write off Covent Garden (2,000,000.00) 30 Jun 2010

Write off Oasis (1,000,000.00) 30 Jun 2010

FY2009 and FY2010

Interest Payments

Default of Constellation - Residual 21,615.62 10 Oct 2008

Default of Palladin - Residual - 28 Oct 2008

Default of Rembrandt - Residual 68,393.78 27 Oct 2008

FY2010

Interest Payments 50,334.01

FY2011

Starting balance 1 July 2010 140,343.41

Sale of Flinders 301,000.00 12 Aug 2010

Quartz Maturity 209,626.75 20 Oct 2010

Sale of Glenelg 160,000.00 29 Dec 2010

Interest on Grange IMP Sept 31,561.37

Interest on Grange IMP Dec 24,731.75

Interest on Grange IMP Mar 10,310.63

Interest on Grange IMP June 16,092.08

Interest on Oasis 81,758.10

Interest on Alpha 12,534.80

Interest on Covent Garden 16,521.58

Default of Covent Garden - 29 Mar 2011

Closing balance FY 2011 1,004,480.47

FY2012

Interest on Oasis 42,942.41

Interest on Alpha 4,837.56

Interest on Grange IMP Sept 9,862.09

Interest on Grange IMP Dec 129.02

Maturity of Alpha 1,001,974.90 20 Mar 2012

Interest on Grange IMP March 123.38

Closing Balance FY 2012 2,064,349.83

FY2013

Interest on Oasis FY2013 20,215.91

Sale of Oasis 219,266.42 23 Jan 2013

Grange Settlement -Beryl 559,966.39 25 Feb 2013

Grange Settlement -Zircon 192,383.73 25 Feb 2013

Rembrandt Settlement 381,695.85 04 Apr 2013

Closing Balance FY 2013 3,437,878.13

FY2016

Lehman 1st Dividend 39,365.19 11-Sep-15

CBA Settlement (Oasis) 836,436.27 18 Dec 2015

LGFS Payment Metter Settlement 1,835.50 14 Jan 2016

Closing Balance FY2016 4,315,515.09




Overview of Investments

An overview of all investments held by the City of Ryde as at 30 April is provided below: 1. Westpac at Call Account (AA-): This investment is an at call account, paying

the short term money market rate. These funds are used for operational purposes.

2. Bank of Queensland Term Deposit (A-): This investment is a 182 day term

deposit paying 3.10% (3.14% annualised), and matures 12 July 2016. 3. Bankwest Term Deposit (AA-): This investment is a 187 day term deposit

paying 2.90% (2.92% annualised), and matures 20 September 2016. 4. AMP Term Deposit (A+): This investment is a one year term deposit, paying

2.90% p.a., and matures 28 July 2016. 5. MyState Bank Term Deposit (BBB): This investment is a 154 day term

deposit, paying 3.00% p.a. (3.03% annualised), and matures 19 May 2016. 6. NAB Term Deposit (AA-): This investment is a 188 day term deposit, paying

3.10% p.a. (3.12% annualised), and matures 15 September 2016. 7. P&N Bank (BBB): This investment is a 185 day term deposit, paying 3.00%

p.a. (3.02% annualised), and matures 16 June 2016. 8. Bankwest Term Deposit (AA-): This investment is a 185 day term deposit,

paying 3.00% p.a. and matures 16 July 2016. 9. Bankwest Term Deposit (AA-): This investment is a 124 day term deposit,

paying 3.00% p.a. (3.03% annualised), and matures 28 June 2016. 10. Bankwest Term Deposit (AA-): This investment is a 182 day term deposit,

paying 2.90% p.a. (2.92% annualised), and matures 15 September 2016. 11. NAB Term Deposit (AA-): This investment is a 119 day term deposit, paying

3.00% p.a. (3.03% annualised), and matures 23 June 2016. 12. Qld Police CU (Unrated): This investment is a 18 month term deposit paying

3.00% p.a. and matures on 2 March 2017. 13. Bendigo Bank TD (A-): This investment is a one year term deposit paying

2.70% and matures on 8 September 2016.




14. Hunter United Employees Credit Unnion (Unrated): This investment is a 60

day term deposit, paying 2.70% p.a. (2.73% annualised), and matures 3 May 2016.

15. Credit Union Australia Term Deposit (BBB+): This investment is a one year

term deposit paying 3.10% p.a. and matures on 2 March 2017. 16. Peoples Choice CU TD (BBB+): This investment is a 183 day term deposit

paying 3.00% p.a. (3.02% annualised) and matures on 9 June 2016. 17. Rural Bank Term Deposit (A-): This investment is a five year term deposit,

paying 6.48% p.a., and matures on 21 March 2017. 18. Bananacoast CU Term Deposit (Unrated): This investment is a one year term

deposit paying 3.10% p.a. and matures on 5 January 2017. 19. CBA Term Deposit (AA-): This investment is a 149 day term deposit paying

2.94% (2.94% annualised) and matures on 4 August 2016. 20. Bankwest Term Deposit (AA-): This investment is a 121 day term deposit,

paying 3.00% p.a. (3.03% annualised), and matures 21 July 2016. 21. IMB Term Deposit (BBB+): This investment is a one year term deposit paying

2.80% and matures on 13 October 2016. 22. Auswide Bank Term Deposit (BBB): This investment is a one year term

deposit paying 2.98% and matures on 8 December 2016. 23. AMP Business Saver at call account (A+): This investment is an at-call

account earning 2.55%. No fees are payable by Council on this investment. 24. CBA Term Deposit (AA-): This investment is a three year term deposit paying

4.55% annually and matures on 16 May 2016. 25. Gateway CU Term Deposit (Unrated): This investment is a 194 day term

deposit paying 2.91% (2.93% annualised) and matures 23 August 2016. 26. Newcastle Permanent Building Society Term Deposit (BBB+): This

investment is a 2 year term deposit, paying 3.03% p.a., and matures on 5 June 2017.

27. Greater Building Society Term Deposit (BBB): This investment is a 181 day

term deposit, paying 2.80% pa (2.82% annualised), and matures on 16 May 2016.




28. Police CU SA Term Deposit (Unrated): This investment is a two year term

deposit paying 3.11% p.a. (3.11% annualised), and matures 27 March 2017. 29. Bank of Sydney Term Deposit (Unrated): This investment is a 210 day term

deposit paying 3.10% p.a. (3.12% annualised) which matures on 6 October 2016.

30. AMP Term Deposit (A+): This investment is a one year term deposit paying

2.85% p.a. which matures on 16 February 2017. 31. CBA Term Deposit (AA-): This investment is a five year term deposit paying

4.15% pa, and matures on 18 November 2019. 32. Heritage Bank Term Deposit (A-): This investment is a one year term deposit

paying 2.81% (2.83% annualised), and matures on 25 August 2016. 33. CBA Term Deposit (AA-): This investment is a 210 day term deposit paying

3.25% p.a., and matures on 16 March 2017. 34. Rabodirect At-Call (AA): This investment is an at call account, paying the

short term money market rate. These funds are used for operational purposes. 35. Members Equity Bank At-Call Account (BBB): This investment is an at call

account, paying the short term money market rate. These funds are used for operational purposes.

36. Westpac Floating Rate Note (AA-): This investment is a senior, unsecured

floating rate note purchased at a yield of 123 above BBSW. This investment matures 9 May 2016.

37. CBA FRN (AA-): This investment is a senior, unsecured floating rate note

purchased at a yield of 125 above BBSW. This investment matures 2 August 2016.

38. ING Term Deposit (A-): This investment is a one year term deposit paying

3.10% p.a., and matures 23 February 2017. 39. ANZ FRN (AA-): This investment is a senior, unsecured floating rate note

purchased at a yield of 142 above BBSW. This investment matures 9 May 2016.

40. NAB Fixed MTN (AA-): This is a fixed rate bond paying 6.18% (6.30%

annualised) and matures 15 February 2017.




41. Westpac Fixed MTN (AA-): This is a fixed rate bond paying 6.00% (6.14%

annualised) and matures 20 February 2017. 42. Macquarie Bank Term Deposit (A): This is a five year term deposit paying

6.50% (6.50% annualised) and matures 3 April 2017. 43. Delphi Bank Term Deposit (Unrated): This investment is a five year term

deposit paying 6.05% p.a. and matures on 15 May 2017. 44. Rural Bank Term Deposit (Unrated): This investment is a one year term

deposit paying 2.90% p.a. and matures on 25 January 2017. 45. ME Bank Term Deposit (BBB+): This investment is a one year term deposit

paying 3.07% p.a. and matures on 2 March 2017. 46. Bank of Queensland Term Deposit (A-): This investment is a five year term

deposit paying 5.15% (5.15% annualised) and matures 20 November 2018. 47. Bank of Queensland Term Deposit (A-): This investment is a 210 day term

deposit paying 3.10% p.a. (3.12% annualised) and matures 29 September 2016.

48. BoQ Specialist Bank (formerly Investec) Term Deposit (BBB+): This

investment is a five year term deposit paying 6.95% on maturity (6.15% annualised) and matures 15 August 2017.

49. Rural Bank Term Deposit (A-): This investment is a 175 day term deposit,

paying 2.85% p.a. (2.87% annualised) and matures on 26 July 2016. 50. ING Floating Rate Term Deposit (A): This is a five year floating rate term

deposit paying 2.30% above 90 day BBSW, and matures 4 September 2017. 51. IMB Term Deposit (BBB): This investment is a 342 day term deposit paying

2.80% p.a. (2.80% annualised) and matures 11 August 2016. 52. Bank of Queensland Term Deposit (BBB+): This is a five year term deposit

paying 3.55% p.a. and matures 12 November 2020. 53. Members Equity Bank Term Deposit (BBB): This is a one year term deposit

paying 3.07% and matures 28 February 2017. 54. Beyond Bank Term Deposit (BBB+): This investment is a 208 day term

deposit paying 3.05% p.a. (3.0% annualised) and matures 4 October 2016.




55. Goldfields Money Ltd Term Deposit (Unrated): This investment is a 195 day

term deposit paying 2.85% p.a. (2.87% annualised) and matures 15 September 2016.

56. Bendigo Bank Term Deposit (A-): This investment is a one year term deposit

paying 2.85% p.a. and matures 18 August 2016. 57. Bendigo Bank FRN (A-): This is a senior, unsecured floating rate note


58. CBA Term Deposit (AA-): This investment is a 149 day term deposit paying

2.90% p.a. (2.92% annualised) and matures 7 July 2016. 59. CBA Term Deposit (AA-): This investment is a three year term deposit paying

3.75% pa and matures 20 November 2017. 60. NAB Term Deposit (AA-): This investment is a one year term deposit paying

2.75% pa and matures 3 November 2016. 61. NAB Term Deposit (AA-): This investment is a 118 day term deposit paying

3.03% (3.06% annualised) and matures 30 June 2016. 62. AMP Term Deposit (A+): This investment is a two year term deposit paying

3.30 p.a., and matures 21 March 2017. 63. Bank of Queensland TD (A-): This is a one year term deposit paying 3.07%

p.a., and matures 16 June 2016. 64. Bendigo Bank FRN (A-): This is a senior, unsecured floating rate note

purchased at a yield of 127 above BBSW. This investment matures 14 November 2018.

65. Rural Bank Term Deposit (A-): This investment is a 183 day term deposit,

paying 2.95% (2.97% annualised), and matures on 12 July 2016. 66. Auswide Bank Term Deposit (BBB): This investment is a 194 day term

deposit paying 3.10% (3.10% annualised) and matures on 20 September 2016. 67. Newcastle Permanent Building Society (BBB+): This investment is a two

year term deposit, paying 3.03% p.a. and matures on 5 June 2017. 68. Credit Union Australia Floating Rate Note (BBB+): This is a senior,

unsecured floating rate note purchased at a yield of 130 above BBSW. This investment matures 20 March 2017.




69. Peoples Choice CU Term Deposit (BBB+): This is a 182 day term deposit

paying 2.92% (2.94% annualised) and matures 26 May 2016. 70. NAB Floating Rate Term Deposit (AA-): This investment is a two year

floating rate term deposit paying 90d BBSW + 100 and matures 16 May 2016. 71. Bank of Queensland FRN (AA-): This investment is a four year floating rate

term deposit paying 90d BBSW + 100 and matures 12 June 2018. 72. AMP 31 Day Notice Account (A+): This investment is an account which pays

+100 over the cash rate. 73. NAB Term Deposit (AA-): This investment is a 181 day term deposit paying

2.95% (2.97% annualised) and matures 9 August 2016. 74. National Australia Bank Term Deposit (AA-): This investment is a 181 day

term deposit paying 2.95% (2.97% annualised) and matures 9 August 2016. 75. Police Bank Floating Rate Note (BBB+): This is a senior, unsecured floating

rate note purchased at a yield of 110 above BBSW. This investment matures 21 August 2017.

76. Newcastle Permanent Building Society (BBB+): This investment is a three

year term deposit paying 3.50% (3.50% annualised) and matures 28 February 2019.

77. Bendigo Bank Term Deposit (A-): This investment is a one year term deposit

paying 2.80% (2.80% annualised) and matures 15 September 2016. 78. Credit Union Australia Term Deposit (BBB+): This investment is a one year

term deposit paying 3.05% and matures on 9 February 2017. 79. Newcastle Permanent Building Society TD (BBB+): This investment is a

one year term deposit, paying 2.70% (2.70% annualised), and matures on 10 June 2016.

80. P&N Bank Term Deposit (BBB): This investment is a three year term deposit,

paying 3.17% p.a., and matures on 6 December 2018. 81. ANZ Floating Rate Note (AA-): This is a senior, unsecured floating rate note





82. ME Bank Floating Rate Note (BBB+): This is a senior, unsecured floating

rate note purchased at a yield of 100 above BBSW. This investment matures 17 November 2017.

83. Bankwest Term Deposit (AA-): This investment is a one year term deposit

paying 2.85% p.a. and matures 14 July 2016. 84. Rural Bank Term Deposit (A-): This investment is a 147 day term deposit

paying 3.05%p.a. (3.08% annualised) and matures 28 July 2016. 85. Queensland Teachers Mutual Bank Floating Rate Note (BBB+): This is a

senior, unsecured floating rate note purchased at a yield of 105 above BBSW. This investment matures 11 December 2017.

86. Teachers Mutual Bank Floating Rate Note (BBB+): This is a senior,

unsecured floating rate note purchased at a yield of 105 above BBSW. This investment matures 4 December 2017.

87. MyState Credit Union Term Deposit (BBB): This investment is a 211 day

term deposit, paying 3.00% p.a. (3.02% annualised), and matures on 12 July 2016.

88. Bankwest Term Deposit (AA-): This investment is a one year term deposit

paying 3.00% p.a. and matures 15 December 2016. 89. NAB Flexi Term Deposit (AA-): This investment is a two year floating TD

paying 103 above 90 day BBSW and matures 9 January 2017. 90. Bankwest Term Deposit (AA-): This investment is a 84 day term deposit

paying 3.00% p.a. (3.03% annualised) and matures 2 June 2016. 91. Westpac Floating Rate Note (AA-): This is a senior, unsecured floating rate

note purchased at a yield of 90 above BBSW. This investment matures 22 January 2020.

92. Rural Bank Term Deposit (A-): This investment is a one year term deposit

paying 3.05% (3.05% annualised) and matures 9 March 2017. 93. Macquarie Bank FRN (A): This investment is a five year floating rate term

deposit paying 90d BBSW + 110 and matures 3 March 2020. 94. CBA Term Deposit (AA-): This investment is a 92 day term deposit paying

2.95% (2.98% annualised) and matures on 6 May 2016.




95. Newcastle Permanent Building Society FRN (BBB+): This investment is a

five year floating rate term deposit paying 90d BBSW + 110 and matures 3 March 2020.

96. Heritage Bank FRN (BBB+): This is a senior, unsecured floating rate note


97. Bendigo Bank Term Deposit (A-): This investment is a two year term deposit

paying 3.05% p.a. and matures 7 December 2017. 98. CBA Floating Rate Note (AA-): This is a senior, unsecured floating rate note

purchased at a yield of 90 above BBSW. This investment matures 17 July 2020.

99. Westpac Floating Rate Note (AA-): This is a senior, unsecured floating rate

note purchased at a yield of 90 above BBSW. This investment matures 28 July 2020.

100. CBA Term Deposit (AA-): This investment is a one year term deposit paying

2.84% and matures on 17 August 2016. 101. Bendigo Bank FRN (A-): This is a senior, unsecured floating rate note

purchased at a yield of 110 above BBSW. This investment matures 18 August 2020.

102. CBA Term Deposit (AA-): This investment is a 154 day term deposit paying

2.90% (2.92% annualised) and matures on 4 August 2016. 103. CBA Term Deposit (AA-): This investment is a 63 day term deposit paying

2.80% (2.83% annualised) and matures on 19 May 2016. 104. NAB Term Deposit (AA-): This investment is a 184 day term deposit paying

3.10% (3.12% annualised) and matures on 22 September 2016. 105. NAB Floating Rate Note (AA-): This is a senior, unsecured floating rate note

purchased at a yield of 96 above BBSW. This investment matures 3 June 2020. 106. CBA Floating Rate Note (AA-): This is a senior, unsecured floating rate note

purchased at a yield of 78 above BBSW. This investment matures 19 October 2018.

107. Suncorp Floating Rate Note (A+): This is a senior, unsecured floating rate

note purchased at a yield of 125 above BBSW. This investment matures 20 October 2020.




108. NAB Floating Rate Note (AA-): This is a senior, unsecured floating rate note


109. ANZ Flexi Rate Term Deposit (AA-): This investment is a seven year floating

TD paying 150 above 90 day BBSW and matures 10 November 2017. 110. MyState TD (BBB): This investment is a 219 day term deposit paying 3.05%

(3.07% annualised) and matures on 7 July 2016. 111. AMP Floating Rate Note (A+): This is a senior, unsecured floating rate note

purchased at a yield of 110 above BBSW. This investment matures 11 June 2019.

112. Members Equity Bank TD (BBB+): This investment is a 244 day term deposit

paying 3.07% (3.09% annualised) and matures on 9 August 2016. 113. CBA Term Deposit (AA-): This investment is a 214 day term deposit paying

2.98% (3.00% annualised) and matures on 14 June 2016. 114. ANZ Flexi Rate Term Deposit (AA-): This investment is a seven year floating

TD paying 145 above 90 day BBSW and matures 15 December 2022. 115. CBA Floating Rate Note (A+): This is a senior, unsecured floating rate note

purchased at a yield of 110 above BBSW. This investment matures 18 January 2021.

116. CBA Floating Rate Note (A+): This is a senior, unsecured floating rate note

purchased at a yield of 115 above BBSW. This investment matures 17 July 2020.

117. Westpac Floating Rate Note (A+): This is a senior, unsecured floating rate

note purchased at a yield of 100 above BBSW. This investment matures 10 May 2019.

118. Credit Union Australia Floating Rate Note (BBB+): This is a senior,

unsecured floating rate note purchased at a yield of 160 above BBSW. This investment matures 1 April 2019.

119. Newcastle Permanent Building Society Floating Rate Note (BBB+): This is

a senior, unsecured floating rate note purchased at a yield of 160 above BBSW. This investment matures 22 March 2019.




120. ANZ Floating Rate Note (AA-): This is a senior, unsecured floating rate note

purchased at a yield of 118 above BBSW. This investment matures 7 April 2021.



3 MARCH QUARTERLY REVIEW REPORT - FOUR YEAR DELIVERY PLAN 2015-2019 AND 2015/2016 OPERATIONAL PLAN

Report prepared by: Acting Chief Financial Officer File No.: FIM/07/6/2/5/6 - BP16/483

REPORT SUMMARY

Council’s Four Year Delivery Plan 2015-2019 and One Year Operational Plan 2015/2016 set out the strategic and financial objectives for the year. They also detail the goals and various performance measures for Council’s seven key outcome areas, the services and projects that Council plans to deliver in 2015/2016. The attached Quarterly Report includes details for each of the seven Outcome areas and the 21 Program areas, detailing the targets adopted by Council and the performance to date in achieving those targets by 30 June 2016. Also shown is a financial performance summary for each key outcome area and a progress status report on all Capital and Non-Capital Projects by Program Area that were being undertaken in 2015/2016. As a result of the March Quarterly Review, Council has further improved its financial position with a $0.18 million increase in Council’s Working Capital. This will result in Council’s available Working Capital increasing to $3.29 million. This review also brings to account additional income received from Section 94 contributions, Building and Land Use Enforcement fees, DA fees, additional investment income and rates income. In addition, this review includes $0.95 million additional funds being allocated to pay off the Ryde Aquatic Leisure Centre (RALC) external loan. It is also proposed in this Review, that $1.00 million be transferred to the Accommodation Reserve to fund the fitout for the new North Ryde office and Top Ryde office, $4.36 million be transferred from Fit For The Future Reserve to the new Merger and Transition Reserve and an additional $0.50 million be transferred to the Merger and Transition Reserve towards the anticipated merger costs. The majority of corporate indicators are on track or have exceeded target, with an improvement being shown in relation to completion of project milestones. Any projects that are proposed to be deferred or cancelled are listed in this report for Council’s consideration.

RECOMMENDATION: (a) That the report of the Acting Chief Financial Officer dated 31March 2016 on the

March Quarterly Review Report - Four Year Delivery Plan 2015-2019 and One Year Operational Plan 2015/2016, Quarter Three, January – March 2016 be received and endorsed.


ITEM 3 (continued)


(b) That the proposed budget adjustments included in this report resulting in a net

increase of $0.18 million to Council’s Working Capital for a projected balance as at 30 June 2016 of $3.29 million, be endorsed and included in the 2015/2016 Budget.

(c) That the proposed transfers to and from Reserves as detailed in the report, and

included as budget adjustments, totalling a net increase in Transfers to Reserves of $14.10 million be endorsed.

(d) That the Certificate of the Responsible Accounting Officer dated 29 April 2016

be endorsed.

(e) That Council endorse the Projects recommended for cancellation, deferral, being placed on hold or proposed to be carried over as detailed in the Report.

ATTACHMENTS 1 Quarterly Review Report, Four Year Delivery Plan 2015-2019 including One

Year Operational Plan 2015/2016 - Quarter Three - January - March 2016 - CIRCULATED UNDER SEPARATE COVER

Report Prepared By: Jifeng Huang Acting Chief Financial Officer

Report Approved By: Roy Newsome Acting Director - Corporate and Community Services


ITEM 3 (continued)


Discussion As required under section 407 of the Local Government Act, 1993 the quarterly review of the One Year Operational Plan 2015/2016 as at 31 March 2016 is presented to Council. This Quarterly Review reports on the performance of Council in undertaking its Principal Activities in terms of its stated objectives and financial position. The following sections are included in the document, Quarterly Review Report, Four Year Delivery Plan 2015-2019 including One Year Operational Plan 2015/2016, Quarter Three, January – March 2016 to ATTACHED - CIRCULATED UNDER SEPARATE COVER; General Manager’s Overview, Financial Management and Corporate

Performance Overview - provides a ‘snapshot’ of Council’s performance in the quarter relative to several high profile activities.

Outcome Area Reports – including overview, operational indicators, financial outcome and graphical representation of performance measures.

Capital and Non Capital Projects Quarterly Status Report – provides comments regarding the status of all of Council’s Capital and Non Capital Expenditure projects.

Base Budget Quarterly Status Report.

Reserves Listing Report – outlines the opening balance, approved budgeted transfers to/from Reserves and proposed additional transfers to/from Reserves, with a projected balance as at 30 June 2016. Appendix A

Quarterly Changes Report – provides comments and details of those budget items that are proposed to be increased or decreased in the 2015/2016 budget. Appendix B

Consolidated Income and Expenditure Estimates 2015/2016, summary of the budget in two pages, showing the original budget and quarterly changes. Appendix C

Report

The March 2016 Quarterly Review has been completed and is submitted to Council for endorsement.


ITEM 3 (continued)


The key points to note that are included in this Review are:- Income

$13.69 million in Section 94 contributions received, which is to be transferred to the Section 94 Reserves for future works;

$2.08 million additional investment income, with $0.88 million in relation to settlement of CBA Oasis to be transferred to Financial Security Reserve, $1 million in relation to unspent Section 94 funding to be transferred to Section 94 and $0.2 million for General Revenue;

$1.3 million additional Environmental Enforcement Levy;

$0.34 million additional Development Assessments income, Subdivision fees and Prelodgement fees received;

$0.21 million reduction for VPA contribution in relation to the property 2-4 Porter Street, Ryde as per revised VPA agreement and

$0.20 million additional Rates income received.

Expenses

$2.98 million increase for Office Fitout - North Ryde Office and Top Ryde Office project, funded by Accommodation reserve;

$1.12 million reduction for Synthetic Sports Surface Action Plan project as per Council resolution dated 15 December 2015;

$0.90 million repayment of RALC external loan and offset by reduction of loan liability, funded by RALC reserve;

$0.72 million increase for ELS Hal Park #1 – Synthetic Surface project as per Council resolution dated 15 December 2015, funded by saving of Synthetic Sports Surface Action Plan project;

$0.54 million increase for Cycleways Construction Expansion Capital Program, partially funded by additional RMS grant and partially funded by Section 94;

$0.45 million saving from Salaries and Wages has been brought to account;

$0.40 million additional funding for Marsfield Park - Cricket Wicket project as per Council resolution dated 15 December 2015, funded by reduction funding for Synthetic Sports Surface Action Plan project;

$0.35 million reduction for the development of 741 Victoria Road project due to work being deferred pending report to the Office of Local Government;

$0.30 million reduction for the development of 33-35 Blaxland Road project due to work being deferred pending report to the Office of Local Government; and

$0.20 million additional funding required for the Tree Maintenance Program, as a result of the review of the Tree D.C.P & Internal SLA.


ITEM 3 (continued)


Reserves

$13.69 million increase for Section 94 contributions received, transferred to reserve;

$4.86 million be transferred to the new “Merger and Transition” Reserve to cover the costs of merger, with $4.36 million being transferred from Fit For The Future Reserve and $0.50 million from General Revenue;

$4.23 million increase from the Accommodation Reserve to fund Office Fitout – North Ryde and Ryde Business Centre project;

$4.23 million to be transferred to the Accommodation Reserve, which includes $0.75 million contribution regarding to North Ryde Lease Agreement to fund capital project Office Fitout - North Ryde and Ryde Business Centre;

$1.78 million increase from Assets Replacement Reserve to Accommodation Reserve;

$1.12 million decrease from Asset Replacement Reserve for Synthetic Sports Surface Action Plan as per Council resolution dated 15 December 2015;

$1.00 million increase for adjustment of interest transferred to reserve on Section 94 contributions;

$0.94 million be transferred to the Ryde Aquatic Leisure Centre Reserve to pay off RALC external loan;

$0.88 million additional investment income for CBA Settlement Oasis be transferred to the Financial Security Reserve;

$0.72 million increase from Assets Replacement Reserve to fund ELS Hall Park #1 – Synthetic Surface project;

$0.40 million increase from the Macquarie Park Corridor Special Rate Reserve to fund Cycleways Construction Expansion Capital Program;

$0.40 million increase from the Assets Replacement Reserve to fund Marsfield Park – Cricket Wicket project;

$0.33 million decrease from the Investment Property Reserve for the development - 741 Victoria Road and the development - 33-35 Blaxland Road projects; and

$0.21 million increase from the VPA Reserve for refund of VPA contribution to the property 2-4 Porter Street, Ryde as per revised VPA agreement;

the Ryde development as per the revised VPA agreement.


ITEM 3 (continued)


Working Capital Summary Following the completion of the Financial Statements, Council had a Working Capital of $4.96 million, as at 30 June 2015. The 2015/2016 Operational Plan was developed utilising $0.008 million of Working Capital. As a result of the March Quarterly Review, the forecasted Working Capital as at 30 June 2016 is $3.29 million as detailed below:- In the March Quarterly Review, the proposed budget adjustments will result in a net increase in Council’s Working Capital by $0.18 million to $3.29 million as at 30 June 2016.

Opening Working Capital 3,053

End of Year Changes 1,910

Final Opening Working Capital 4,963

Delivery Plan (8)

Revised Working Capital 4,955

September Adjustments (1,888)

December Adjustments 38

March Adjustments 180

Carryover Adjustments

June Adjustments

Closing Working Capital 3,285

Overview of March Review Following the March Quarterly Review, Council is projecting a Working Capital surplus of $3.29 million. The following are the major changes to be made, with a complete listing provided in the circulated document (Appendix B), and more detailed explanations in each

Outcome area of that document. Operating Budget

The budget is projected to increase operating income by $17.99 million (13.46%) with the main areas being as follows:-

Increase

o $13.69 million in Section 94 contributions received, which is to be transferred

to the Section 94 Reserves for future works;


ITEM 3 (continued)


o $2.08 million additional investment income, with $0.88 million in relation to

settlement of CBA Oasis to be transferred to Financial Security Reserve, $1 million in relation to unspent Section 94 funding to be transferred to Section 94 Reserves and $0.2 million for General Revenue;

o $1.30 million additional Environmental Enforcement Levy;

o $0.34 million additional Development Assessments income, Subdivision fees

and Prelodgement fees received;

o $0.20 million additional Rates income received;

o $0.20 million additional income from sports facilities user fees;

o $0.14 million additional Car Parking Fines received;

o $0.14 million RMS Grant Income for Cycleways Program as per Council

Meeting dated 27 October 2015;

o $0.08 million additional contribution received in relation to the Shop Ryder

Community Bus;

o $0.07 million additional RMS Block Grant received;

o $0.07 million additional rental income for Community Building;

o $0.05 million additional income for Private Works.

Reduction

o $0.21 million reduction for VPA contribution in relation to the property 2-4

Porter Street, Ryde as per revised VPA agreement; and

o $0.08 million reduction for Roads Recovery Grant, offset by a reduction of

funding for Road Resurfacing Renewal Capital Program.

The budget is projected to increase operating expenses by $0.43 million (0.45%) with the main areas being as follows:-

Increase

o $0.94 million early repayment of RALC external loan and offset by a

reduction of loan liability, funded by RALC reserve;

o $0.20 million additional funding required for Tree Maintenance Program, as a

result of the review of the Tree D.C.P & Internal SLA;

o $0.10 million additional funding required for settlement for Public Liability

claims incurred in previous years, funded by Insurance Fluctuation Reserve;

o $0.05 million additional funding for Events Strategy funded by saving of

Intranet Upgrade project as per Council resolution dated 26th May 2015;

o $0.04 million additional funding required for Development Assessments

Program, offset by additional income received;


ITEM 3 (continued)


o $0.03 million additional funding required for the mail-out letters to Pensioners

as required by Centrelink; and

o $0.03 million additional funding for Shop Ryder Community Bus Services,

offset by additional contribution received.

Reduction

o $0.45 million saving from Salaries and Wages has been brought to account;

o $0.06 million reduction for Roads Maintenance Program as a result of

reducing the demand on reactive maintenance; and

o $0.05 million reduction for Kerb and Gutter Maintenance Program as a result

of reducing the demand on reactive maintenance.

In total, a projected increase in Operating Surplus of $17.56 million, most of which is being utilised for Capital or transferred to Reserves.

Capital Budget

The capital budget is projected to increase its capital expenses over budget by $2.06 million (4.38%), with the main areas being as follows:-

Increase

o $2.98 million increase for Office Fitout North Ryde and Ryde Business

Centre project, funded by the Accommodation reserve;

o $0.72 million increase for ELS Hal Park #1 – Synthetic Surface project as per

Council resolution dated 15 December 2015, funded by a saving from the Synthetic Sports Surface Action Plan project;

o $0.54 million increase for Cycleways Construction Expansion Capital

Program, partially funded by additional RMS grant and partially funded by the Macquarie Park Corridor Special Rate Reserve;

o $0.40 million additional funding for Marsfield Park - Cricket Wicket project as

per Council resolution dated 15 December 2015, funded by a saving from the Synthetic Sports Surface Action Plan project; and

o $0.14 million increase for Sportsfield Upgrade & Renewal Capital Program,

funded by a saving from Sportsfield Floodlighting Expansion Capital Program.

Reduction

o $1.12 million reduction for Synthetic Sports Surface Action Plan project as

per Council resolution dated 15 December 2015;


ITEM 3 (continued)


o $0.35 million reduction for development of 741 Victoria Road due to work

being deferred pending report to Office of Local Government;

o $0.30 million reduction for development of 33-35 Blaxland Road due to work

being deferred pending report to Office of Local Government;

o $0.17 million reduction for Porters Creek Precinct project as works are

deferred pending finalisation of land acquisition;

o $0.14 million reduction for Sportsfield Floodlighting Expansion Capital

Program as a result of a saving from Morrison Bay project;

o $0.08 million reduction for Roads to Recovery Grant, offset by a reduction of

funding for Road Resurfacing Renewal Capital Program; and

o $0.04 million reduction for Corporate Buildings Renewal as the project is

recommended to be cancelled.

Reserve Movements

Transfers from Reserve’s budget is projected to increase by $11.52 million, (13.80%) the main areas being as follows:-

Increase

o $4.36 million be transferred from Fit For The Future Reserve to new Merger

and Transition Reserve;

o $4.23 million increase from Accommodation Reserve to fund Office Fitout –

North Ryde and Ryde Business Centre project;

o $1.78 million increase from Assets Replacement Reserve to Accommodation

Reserve;

o $0.94 million increase from Ryde Aquatic Leisure Centre Reserve to fund

repayment of RALC External Loan;

o $0.72 million increase from Assets Replacement Reserve to fund ELS Hall

Park #1 – Synthetic Surface project;

o $0.40 million increase from Assets Replacement Reserve to fund Marsfield

Park – Cricket Wicket project;

o $0.40 million increase from Macquarie Park Corridor Special Rate Reserve to

fund Cycleways Construction Expansion Capital Program;

o $0.21 million increase from VPA Reserve for refund of VPA contribution to

Ryde Development as per revised VPA agreement;

o $0.14 million increase from Section 94 Reserve to fund Sportsfield Upgrade

& Renewal Capital Program; and

o $0.11 million increase from Insurance Fluctuation Reserve to fund additional

costs for Public Liability claims.


ITEM 3 (continued)


Reduction

o $1.12 million decrease from Asset Replacement Reserve for Synthetic Sports

Surface Action Plan as per Council resolution dated 15 December 2015;

o $0.17 million decrease from Investment Property Reserve for development -

741 Victoria Road project due to work being deferred pending report to Office of Local Government;

o $0.17 million decrease from Domestic Waste Reserve for Porters Creek

Precinct project as works deferred pending finalisation of land acquisition;

o $0.15 million decrease from Investment Property Reserve for development

33-35 Blaxland Road project due to work being deferred pending report to Office of Local Government; and

o $0.14 million decrease from Section 94 Reserve for the saving of Sportsfield

Floodlighting Expansion Capital Program.

Transfers to Reserve’s budget is projected to increase by $25.62 million (32.99%), the main areas being as follows:-

Increase

o $13.69 million increase for Section 94 contributions received, transferred to

reserve;

o $4.86 million to be transferred to the new “Merger and Transition” Reserve to

cover the costs of merger;

o $4.23 million to be transferred to the Accommodation Reserve, which

includes $0.75 million contribution regarding to North Ryde Lease Agreement to fund the capital project Office Fitout - North Ryde and Ryde Business Centre;

o $1.00 million increase for adjustment of interest on investments transferred to

reserve on Section 94 contributions;

o $0.94 million to be transferred to the Ryde Aquatic Leisure Centre Reserve

to pay off RALC external loan; and

o $0.88 million additional investment income for CBA Settlement Oasis to be

transferred to the Financial Security Reserve;


ITEM 3 (continued)


Projects recommended to be cancelled, deferred, put on hold or to carryover The following projects are listed in the March Quarterly Review and are recommended to be cancelled, deferred and put on hold for the reasons indicated, with budget adjustments included:-

$0.04 million Corporate Buildings Renewal is recommended to be cancelled as it is not required.

The following projects/programs are currently earmarked as potential carryover projects that will require the funding to be carried over to the 2016/2017 financial year. Budget adjustments for these will be done as part of the carryover report on 21 June 2016; noting that further explanations are included in the circulated document and will be included in the report in June.

The proposed carry over projects are;

Sportsfield Renewal & Upgrade

Flora and Fauna Surveys

Macquarie Park, Waterloo Rd

Brush Farm Park Signage

Brush Farm Park steps

Synthetic Sports Surface Action Plan

Signage at Playgrounds (Capital)

Marsfield Park - Cricket Wicket

Protecting Biodiversity in Ryde

ELS Hall Park #1 - Synthetic Surface

Implementation of Children Play Plan -P2

Multi-Function Poles (MFP) Streetlighting

Ryde Civic Hub - International Design Competition

West Ryde Community Facility - Project Management

Stormwater Asset Replacement Renewal

Stormwater Improvement Works Renewal

Gladesville Litter Reduction Project

Neighbourhood Centre Renewal

Town Centre Upgrade Renewal

Footpath Upgrade - Byfield St Macq Park

Street Tree Planting in Byfield Street Macquarie Park

Digital enhancement for Libraries


ITEM 3 (continued)


Community Buildings Renewal

Footpath Construction Expansion

Waste - to – Art

Morrison Road LATM

Living on the Block - Managing Household Cleanup

Information Technology Renewals

Organisational Review

Night Time Economy

Payment Portal and Payment Gateway Tender

The Payment Portal and Payment Gateway initiative, is a project within the Information Technology Renewals budget, that was managed by Council’s Chief Financial Officer. On 17 November 2015, Council resolved to reject all tenders, as no respondent satisfied all of Council’s requirements and delegated to the General Manager to commence negotiations with the National Australia Bank, in respect of both Payment Portal and Payment Gateway. Council also required for a further report on the implementation of the Payment Gateway and Portal to be provided to Council in February 2016. Meetings and negotiations were undertaken with the National Australia Bank.

However, due to the recent departure of Council’s previous Chief Financial Officer in January 2016 and the requirement to undertake further due diligence on the implementation of this initiative, including functionality, this project has been deferred and is recommended to be carried over to the 2016/2017 financial year.

This decision has been taken also in consideration of the current significant workload associated with Council’s relocation, preparation for the proposed merger and the preparation for the 2015/2016 end of financial year process.

Staff turnover The turnover rate has increased this Quarter to 3.22%. As a result of increased resignations received, the position vacancy rate has increased substantially to 14.6%.


ITEM 3 (continued)


Critical Dates The following deadlines are required to be met;

In accordance with Section 407 of the Local Government Act 1993, the General Manager must report to the Council within 2 months after the end of each quarter as to the extent to which the performance targets set by the Council's current Management Plan have been achieved during that quarter.

The Chief Financial Officer as Council’s Responsible Accounting Officer, in accordance with the Part 2 Clause 7 of the Local Government (Financial Management) Regulation 1999 is required to certify whether the Council’s financial position is satisfactory having regard to the original estimates of income and expenditure. Fit for the Future Council resolved, during 2014/2015 to allocate $3.00 million in creating the Fit for the Future Reserve. The purpose of the reserve was to create funding that would be used by Council in responding to the State Government’s Fit for the Future (FFTF) initiative, including Councils submission, awareness campaign and Advocacy Program. Council to date has spent a total amount of $578,275 with the City of Ryde’s proportion being $421,730 with the balance being contributed by Hunter’s Hill and Lane Cove Councils. Council carried forward and amount of $191,846 (adjusted in September Quarter Review) which was added to the original budget of $100,000, for a total amount of $410,754 towards funding any advocacy campaign. In the 2015/2016 year, Council has budgeted $150,000 for the implementation of its FFTF action plan, and $100,000 towards strategic asset management capability to manage the implementation. In the September Quarter Review, Council has budgeted $61,266 for the Ryde Civic Hub. - International Design Competition and in the December Quarter Review, it is proposed to transfer $2.00 million to the Fit for the Future Reserve. The total amount in the approved budget for 2015/2016 is $603,112, which leaves an amount of $4.36 million in the Fit for the Future Reserve. In this review, it has been recommended that the balance of the Fit for the Future Reserve of $4.36 million, be transferred to the new “Merger and Transition” Reserve to cover the projected costs of the merger.


ITEM 3 (continued)


Financial Implications Council’s available Working Capital is projected to increase by $0.18 million to approximately $3.29 million as at 30 June 2016. Council’s Operating Result before Depreciation is projected to increase by $17.56 million to $56.37 million surplus. Net Operating Result before Capital Grants and Contributions is projected to increase by $4.01 million to $13.83 million surplus. Council’s Capital Works Program is projected to increase by $2.06 million as detailed in the report. Overall, Council’s financial position continues to be sound, noting that Council’s annual funding shortfall of $10 million for asset infrastructure maintenance and renewal is being addressed as part of Council’s approved Special Rating Variation (SRV). The SRV was approved by the Minister on 19 May 2015 and will raise $2.36 million during 2015/16 from all rateable properties in the City of Ryde. Special rate funds will be used to undertake additional asset infrastructure renewal works and asset maintenance in the City of Ryde.


ITEM 3 (continued)


Certificate In accordance with the Local Government (Financial Management) Regulation 1999, Part 2, Clause 7, I report that the financial position of the Council was satisfactory as at 31 March 2016, having regard to the original estimates of income and expenditure. Variations in total income, operating and capital expenditure as at 31 March 2016 are of a quantum and nature that overall end of year financial targets will be achieved.

Jifeng Huang Acting Chief Financial Officer Responsible Accounting Officer 29 April 2016



4 LOCAL GOVERNMENT REMUNERATION TRIBUNAL DETERMINATION - Councillors and Mayoral fees for 2016/17

Report prepared by: Senior Coordinator - Governance File No.: CLR/07/8/24 - BP15/1897

REPORT SUMMARY

This report is presented to Council to advise of the recent determination made by the Local Government Remuneration Tribunal with respect to Councillor and Mayoral fees. In determining the Councillor and Mayoral fee increase, the Tribunal has determined that the City of Ryde remain in the “Metropolitan Centre” category. This report recommends that Council endorse the maximum Councillor and Mayoral fees and confirms that there are sufficient funds in the 2016-2017 budget for this increase.

RECOMMENDATION: That Council adopt the following increases to Councillor and Mayoral fees effective from 1 July 2016: (a) 2.5% increase to Councillor fees from $23,370 to $23,950 per annum. (b) 2.5% increase to Mayoral fees from $62,090 to $63,640 per annum; in addition

to the Councillor fees.

ATTACHMENTS 1 2016 Annual Determination of the Local Government Remuneration Tribunal

Report Prepared By: Amanda Janvrin Senior Coordinator - Governance Report Approved By: John Schanz Manager - Risk, Audit and Governance

Angela Jones-Blayney Acting Chief Operating Officer


ITEM 4 (continued)


Context

Sections 239 and 241 of the Local Government Act 1993 (the Act) states that the Local Government Remuneration Tribunal will determine the category of each Council and the fees to be paid to Councillors and the Mayor. The Tribunal reviews and determines the category of each Council and Councillor fees annually. At its meeting on 26 May 2015, Council resolved to adopt the maximum fees payable to Councillors for the period of 2015/16. Discussion

Categorisation of Councils The “Annual Report and Determination of the Local Government Remuneration Tribunal” dated 29 March 2016 is ATTACHED.

The Tribunal has determined that the City of Ryde will remain categorised as a “Metropolitan Centre” Council. The Tribunal notes that the process for determining merger proposals and creation of new Councils, if any, is expected to be finalised in mid-2016, with consequent implications for categorisation of Councils for the purposes of determining fees. Consequently, the Tribunal has stated that if required, the Minister for Local Government may direct the Tribunal to make special determination(s) in accordance with Section 242 of the Local Government Act, 1993. The Tribunal is of the view that significant changes to the structure of Councils should prompt a revision of the criteria for determining categories and fees. Review of Mayoral and Councillors Fees The Tribunal is required to have regard to the Government’s wages policy when determining the increase to apply to the maximum and minimum fees that apply to the Councillors and Mayors. The public sector wages policy currently provides a cap on increases of 2.5%. Having reviewed the key economic indicators, including the Consumer Price Index and Wage Price Index, the Tribunal has determined that the full increase of 2.5% is warranted.


ITEM 4 (continued)


The Tribunal notes that in the Fit for the Future Progress Report – Stronger Councils, Stronger Communities the Government has identified a number of strategies to strengthen local leadership, including a review of Councillor remuneration during 2016. The table below provides a summary of the minimum and maximum fees determined by the Tribunal. Tribunal Fee Range for 2016/17 Minimum Fee

Determined by the Tribunal

Maximum Fee Determined by

the Tribunal

CoR 2015/16 Current Annual

Fee

Councillor fee (per annum) $12,830 $23,950 $23,370

Mayoral additional fee (per annum)

$27,260 $63,640 $62,090

The Mayor receives a Mayoral fee in addition to the Councillor fee. In previous years, Council has resolved to endorse the maximum fees payable to Councillors and the Mayor. Based on the table above, the total cost of paying the maximum Councillor and Mayoral fees will be $351,040. There is provision for this amount in the 2016/17 budget. Critical Dates

The new fees are payable as from 1 July 2016. Financial Impact There is adequate provision in the 2016/17 budget to fund the maximum fees. Policy Implications Under Sections 239 and 241 of the Local Government Act 1993, the Local Government Remuneration Tribunal determines the category of each Council and the fee range for Councillors and the Mayor. Within that range, Council then determines the fee which will be paid.


ITEM 4 (continued)


Other Options

The following options are available: 1. That Council adopt a no fee increase to the Councillors fees and Mayoral fee. 2. That Council adopt a partial fee increase to the Councillors fees and Mayoral

fee. 3. That Council adopt a fee reduction to the Councillors and Mayoral fees. 4. That Council adopt the full fee increase to the Councillors fees and Mayoral fee. Based on Council’s previous resolution on this matter, this report recommends that Council endorse the maximum Councillor and Mayoral fees, noting that there are sufficient funds in the 2016/17 budget.



5 HISTORICAL GRANTS (COMMUNITY AID) REVIEW

Report prepared by: Senior Coordinator - Cultural and Social Planning File No.: CCS/09/9/2 - BP16/470

REPORT SUMMARY

At its meeting held on 27 August 2013, Council approved a two-stage approach for the review of the community grants policy and administration. Stage one of the review focused on administrative improvements to the community

grants which was implemented as part of the 2013-2014 community grants program.

Stage two was a comprehensive review of the Policy and was to be undertaken in

two parts:

1) Review of the Community Grants Policy categories and establishment of new categories to improve transparency, equity and to streamline administration of the grant application process. Council considered and adopted the revised policy on 9 December 2014.

2) Review of Council’s Historical Grants categories with a view to phasing out these arrangements. This review included engagement and consultation with the grant recipients.

A review of Council’s historical grants including consultation with stakeholders was undertaken and Historical Grants Review report was presented to the Council on 28 July 2015. At this meeting Council resolved: That this matter be referred back to Council staff for further consideration and a workshop to be held with Councillors. Council undertook extensive consultation with relevant stakeholders and understood that there was an in principle support for the proposed changes to the Historical Grants category. However, further issues raised by community aid organisations at this meeting it became evident that Council staff needed to explore additional options regarding the category. The discussion of these options occurred with the key community organisations on 19 February 2016. The purpose of this consultation was to seek their feedback on the options and the mechanisms to deliver the historical funding to community aid organisations that best aligned to the emerging needs in the community. A workshop with Councillors was held on 23 February 2016. This report has been prepared based on the information presented to the Councillors and their feedback on the options which has informed the approach, and the future of the Historical Grants program.


ITEM 5 (continued)


Community aid organisations are local voluntary organisation devoted to the welfare needs of its local community and are largely funded through the discretionally funding of Department of Social Services (DSS) and Ageing Disability and Home Care (ADHC). Through the historical grants, Council provides an overall funding of $80,000 per annum to the 3 local community aid organisations including: Christian Community Aid, Hunters Hill Ryde Community Aid and North Ryde Community Aid.

Following is the breakdown of Council funding provided to these organisations on an annual basis:

Council’s total funding = $80,000 per year.

Christian Community Aid- $32,000 (40% of Council funding)

North Ryde Community Aid- $24,000 (30% of Council funding)

Hunters Hill Ryde Community Services- $24,000 (30% of Council funding)

Current funding is not project based and can cover operational / staff costs. There is no mechanism to ascertain accountability of Council funds. In 2013, Council conducted a review of its Community Grants Policy. The purpose of the review was to improve the transparency, equity, accessibility and sustainability of Council’s Community Grants Program. A key deliverable of the policy review process included a greater alignment of historical grants funding to the overall approach and integration of Council’s two categories of historical grants into existing policy frameworks endorsed by Council in 2014. As a result of the review of the Historic Grants Funding Program, it is recommended that funding continues to the community aid organisations and opportunities of additional funding is made available to other organisations within Ryde that provide services to our community. The review proposed 4 options:

1. Funding to community aid organisations: Traditional closed funding open to 3

existing organisations.

2. Funding to all organisations active in Arresting Vulnerability: City wide program

open to wider Not-for-profit organisations addressing emerging needs.

3. A split model: Quarantined ongoing funding for community aid organisations.

and additional funding is available to organisations providing support services.

4. Status Quo - continue the allocation of $80,000 to the 3 community aid

organisations.


ITEM 5 (continued)


This report recommends Option 3 as the preferred approach as it proposes:

a dedicated funding allocated to community aid organisations to maintain certainty of funding and to reflect Council’s ongoing support to the work of community aid organisations in meeting community needs.

funding is made available to other organisations within Ryde that provide support services to our community. This additional funding would:

o ensure that Council enhances its capacity to fund emerging

organisation providing key social support services to the local community.

o encourage collaboration and innovation by encouraging organisations

to work in partnership to leverage the funding opportunity by having an option to apply jointly for projects.

o assist in ensuring that funding for these organisations can be

sustained into the future.

an increase in the funding available for community organisations from $80,000 to $120,000.

It is recommended that a new grant category is established known as Social Support Grants to address the emerging needs in the community. The grant would commence in 2017/2018. The other components of the Historical Grants are the historical funding of events. A review of grants allocated to the six organisations such as Ryde Art Show, Ryde Schools Spectacular, and Ryde City Concert Band will occur as a part of the preparation of the Events Strategy. RECOMMENDATION: (a) That Council endorses the replacement of Historical Grants Program allocated

to the community aid organisations with a new grant category known as the Social Support Grants.

(b) That Council endorses an increase in the funding from $80,000 to $120,000 per

annum allocated to Social Support Grants Program, and that Council allocate $40,000 from General Revenue and Working Capital for this purpose.


ITEM 5 (continued)


(c) That Council endorses Option 3 as the preferred option for the Social Support

Grants which:

- Allocates $60,000 to community aid organisations including CCA,

NRCA and HHRCS.

- Allocates $60,000 that is available to all organisations active in the

provision of social support services within Ryde.

(d) That Social Support Grants program commence in July 2017.

ATTACHMENTS

There are no attachments for this report. Report Prepared By: Gunjan Tripathi Senior Coordinator - Cultural and Social Planning

Report Approved By: Meryl Bishop Manager - Strategic City Liz Coad Acting Director - City Strategy and Planning


ITEM 5 (continued)


Background At its meeting held on 9 April 2013, Council resolved in part the following:

(e) That a Councillors working party of all interested Councillors be established to provide input into the proposed review the Community Grants Policy including providing key parameters for the draft and the matter be reported back with recommendations by August 2013 to allow the new policy to be in place prior to the commencement of the advertising for the 2013 Grants Program.

(f) That any Councillor wishing to be on the working party should lodge their

expression of interest with the Acting General Manager by 22 April 2013. At its meeting held on 27 August 2013, Council resolved the following:

(a) That Council approves a two-stage approach for the review of community grants policy and administration as outlined in the report.

(b) That Council approve changes in the Community Grants Policy and

Guidelines for implementation in 2013-2014 to achieve the following:

Fund projects that specifically address the needs of Ryde residents

Fund only one project per organisation under each category

Provide recipients of the Historical Grant Categories with a 2 year funding agreement.

(c) That the Council approves the methodology and scope of the

comprehensive review as outlined in this report.

In implementing the Council resolution, staff commenced reviewing the operation of the Community Grants Policy. In order to determine the scope of the policy review project staff researched industry best practice and sought feedback from Councillors. Councillors met on the following occasions to consider progress of the review process.

June 2013 - Councillor Workshop to determine the key aspects of the review, including potential Grants categories.

2 September 2014 at a Councillor Workshop staff presented options and recommendations for Grant categories and proposed an approach to Historical Grants. The assessment criteria and proposed way forward for each of the organisations funded under the Historical Grants was also presented.


ITEM 5 (continued)


At its meeting on 9 December 2014, Council resolved the following:

(a) That Council approve changes to the Community Grants Policy and Implementation Procedure as outlined in the body of this report, with the continuation of the sporting grants to be known as the Sport and Recreation Community Grant with funding to be maintained at $25,000.

(b) That the Policy provide for only one grant to be awarded to any one

organisation. At a further consultation with the Councillors on 12 May 2015, Council staff presented the result of the Historical Grant categories’ review and consultation with the impacted community organisations. Historical Grants Review report was presented to the Council on 28 July 2015. At this meeting Council resolved:

That this matter be referred back to Council staff for further consideration and a

workshop to be held with Councillors.

In late February 2016, further consultation was held with community organisations and a workshop was held with the Councillors. Feedback from these events has informed the options to guide the Grants Program into the future. This report has been prepared based on the information presented at this workshop. This report specifically relates to the ongoing funding to community aid organisations.

The Historical Events Grants are not a subject of this report. A comprehensive review of Events Strategy is underway to determine the future of the historical events and will be reported to Council at a later date as per the following Council resolution: At the meeting on 26 May 2015 Council resolved:

That the General Manager undertake a comprehensive review of the City’s existing events program and processes and prepare a report to Council detailing:

I. existing community, cultural and sporting events, community

celebrations, markets, awards programs and commemorations

throughout the year;

II. major events and community festivals;


ITEM 5 (continued)


III. current event processes and customer satisfaction including the

provision of logistical, approval and planning support, financial

assistance and event attraction;

IV. a risk analysis, including the benefits and dis-benefits to the City of Ryde

(reputational, economic or otherwise); and

V. an analysis of the existing annual budget for City events and

recommendations for any future City events program.

Discussion Councils annual Community Grants Program is a strategic tool for capacity building, supporting innovation, and addressing community need in line with the Council and community’s vision. The City of Ryde recognises the value of community grants as a key tool to meet the needs of its residents. Community grants extend the community’s capability to conduct activities, create opportunities for community capacity building and develop strong partnerships. Historical Community Aid Grants: Council has had a long standing commitment to provide community grants to fund innovative approaches to meet the emerging needs in the community. Council’s annual Community Grants Program meets these objectives by funding projects across well-defined categories including Senior’s Grants, Community Capacity Building Grants, community projects, small grants and school excellence awards. An overall review of the Community Grants Program was conducted over 2013-2014 to ensure the new categories are able to address the emerging needs in the community. City of Ryde’s commitment to the current Community Aid Grants recognises the significant role of the three community aid organisations within the City of Ryde service network and in meeting diverse community needs. These three organisations to which this Category applies are Christian Community Aid (CCA), North Ryde Community Aid (NRCA) and Hunters Hill Ryde Community Services (HHRCS). Funding under this category expects the 3 organisations to deliver on and report on the following objectives:

To maintain a high level of participation within the service network.

To collaborate with Council to identify and address emerging issues.

To work with Council to develop and support smaller community organisations.

To participate in Council / community planning processes.


ITEM 5 (continued)


Council resolved on 1 December 2009 the Community Grants Policy and Guidelines which include that the Community Aid Category funding be committed on a 3 yearly basis. Specifically Council resolved:

That Council maintain the amount of funding allocated in the 2010-11 Management Plan for the categories of Community Aid Grants and Community Event Grants in the 2011-12 and 2012-13 Management Plans.

Council resolved to allocate a sum of $80,000 for this Category in its budget to be apportioned as follows.

Christian Community Aid- 40%

North Ryde Community Aid- 30%

Hunters Hill Ryde Community Services- 30%

Council recommended that these percentages will be reviewed every three years, taking into account any service changes and outcomes produced during funding period. The funding provided by Council is not for specific projects and forms part of the overall income of these organisations. It is to be noted that the funding amount and percentage of Historical Grants Program has not changed over the last 10 years. Table: 1 Breakdown of funding and percentages of the overall income of community aid organisations:

Organisation Council Grant Overall Income % of Income

Christian Community Aid $32,000 $2,714,496 1.18%

Hunters Hill Ryde Community Services

$24,000 $1,925,573 1.25%

North Ryde Community Aid $24,000 $591,942 4%

Due to community aid organisation’s access to this exclusive funding arrangement, they are not eligible to make application for funding under the Community Grants category.


ITEM 5 (continued)


Other contributions that Council provide:

Subsidised rent to the following community aid organisations:

Christian Community Aid - (Lakeside and West Ryde properties) Property Area m2 Current Council

license fee per annum

Market Rental

10-12 Lakeside Road Eastwood

834.7 $5,060 $27,078

2 Dickson Avenue West Ryde

631.82 $1,631 $17,737

Total 1,466 $6,691 $44,815

North Ryde Community Aid Property Area m2 Current Council

License fee per

annum

Market Rental

4 Cutler Parade, North

Ryde

415.9 $4521.0 $15,926.00

If the above properties were rented for residential premises, the annual income is projected as $60,741.

2015-16 Community Grants Program funded the 3 organisations $10,000 for business planning in the context of funding cuts as result of the review of Historical Grants and the federal funding.

Community Grants Review Process: 2013-2016

On 27 August 2013, Council approved a two-stage approach for the review of

the Community Grants Policy and administration.

Stage 1 - administrative improvements were implemented as part of 2014

grant program.

Stage 2 (Part 1) included a more comprehensive review of the Policy and was

implemented in 2015. Council adopted revised policy in Dec 2014.

(Part 2) Historical Grants review and approach was presented to Council in

July 2015. Staff met with all organisations currently receiving Council’s

Historical Grants to discuss the objectives, process, options and appropriate

transition arrangements as a part of the review.


ITEM 5 (continued)


Key principles applied to the review:

The following key principles have been applied across the review of all community grants categories. These principles were derived from the early feedback from Councillors highlighting the need for the changes to build a robust and transparent system of grant policy development and implementation.

Access – with a focus on emerging groups.

Equity – transparent and accountable process.

Acquittal – demonstrated social and financial outcomes.

Audit – demonstrated accounting of project outcomes through a robust system of oversight.

Assessment – offering the same opportunity to all organisations.

Capacity building – build capacity of organisations.

Eligibility – clearly outlined criteria including benefits to community. These principles are intended to achieve the following objectives:

To ensure that the process promotes fairness in the distribution of grants in order to support emerging groups and organisations that are less capable.

To ensure that a transparent process of ensuring accountability is implemented based on evaluations of funded projects in light of social and financial outcomes achieved.

To ensure demonstrated accounting and use of grant funding is maintained through project site visits, evaluation reports and regular updates from organisations receiving community grants.

To ensure that the grants process allows the same opportunity to all community organisations including small and less affluent organisations

To ensure that the phase 1 of the grants review process builds capacity of the small community organisations by providing training opportunities in submission writing and writing funding acquittals.

To clearly outline the eligibility criteria for funding including the benefits to the local communities, alignment of activities with City of Ryde’s Community Strategic Plan, size and capacity of organisations and sources of funding.

To research categories and support options to enable access by a diverse range of groups, offer flexibility and build capacity of local organisations and support innovation.

City of Ryde’s Grants Program supports a diverse range of initiatives by the local organisations. Council’s total expenditure in 2014- 2015 across all Community Grants categories was $225,042. The funding categories were reviewed in 2013 to reflect emerging needs within the community such as the need to address social isolation within the aged populations through Senior’s Grants. The following table provides a breakdown of this expenditure across its current Grant categories.


ITEM 5 (continued)


Table: 2 Community Grants 2014- 2015 Summary

Grant Categories

$$ Allocated in budget $$ spent in 2014-15

Annual Community Grants $150,000 $126,542

Sports and Rec $25,000 as per Council Resolution

$16,050

Seniors Grants No specific budget allocation

$12,500

Capacity Building Grant – Event Category No specific budget allocation

$9,492

Capacity Building Grant – Emerging/Small Groups Category

No specific budget allocation

$12,500

Capacity Building Grant – General Category No specific budget allocation

$10,500

Community Projects Grant Category No specific budget allocation

$65,500

Small Grants Program New Program launched in 2015

-

Community Aid Grants (Historical) $80,000 $80,000

Community Events Grants (Historical)

25,000 $18,500 ( Cash Component)+ venue hire support

TOTAL 255,000 225,042

Comparison with other Councils: Across the NSROC region, Councils take different approaches in the delivery of Community Grants Program. Councils like City of Ryde have moved away from direct service delivery models to capacity building of the not-for-profit sector in delivering key services and outcomes for the community. Other Councils such as Lane Cove and Hunters Hill are still at the forefront of the delivery of services in their community. In comparison to the rest of NSROC Councils, the funding of City of Ryde’s Grants Program sits at a middle level. The 2013 review of the Community Grants Program created targeted categories to address specific needs in the community thereby building an efficient and effective model of grants implementation. This review also created an opportunity to review the Historical Grants arrangements to align them with the key principles of the review. Strategically, the funding and delivery of Councils Community Grants Program will need to be reviewed within a short to medium term to align it with the outcome of an amalgamated entity.


ITEM 5 (continued)


Table 3: Comparison to NSROC Councils

Council Grant Categories and principles Directed Grant Funding per capita population

Willoughby Categories include: Community Development, Individual and Sport Grants, Arts and Cultural and Event Seed Funding. No ongoing funding to Community Aid organisations.

$0.91 Total:$67, 410 Population: 74,166

Hunters Hill Based on nominations from local organisations Maximum of $800 is provided per group. Community Aid funding is capped at $10,000.

$2.22 $10,000 towards community grants $10,000- committed to local Community Aid Total: $20,000 Population: 8,994

Ku-ring-gai Categories include: Small equipment, Community development programs and Arts and cultural programs.

$0.82 Total: $90,000 Population: 109,297

Lane Cove The categories include: Children and families, youth disability, aged and provision of services in the area with Specific funding for Community Aid organisations operational aspects.

$14.64 $239,165 towards operations of local Community Aid $222,185 across all other categories Total: $461,350 Population : 31,510

North Sydney The categories include: Community Services for various target communities such as Youth, CALD, Disability Services, Children and Families etc. and subsidies to community Events.


Hornsby Categories include: community event partnerships, venue support partnerships, Mayors Youth Trust Funds and in kind support to community events.

$0.54 Total: $85,000 Population : 156,847

City of Ryde The Community Grants categories include : Sports and Rec, Seniors Grants, Community Capacity Building Grants, Community Projects and a rolling program of Small Grants.

$2.47 $150,000 towards Community Grants,$ 80,000 historical funding to Community Aid $25,000 Historical funding to Community Events Total: $255,000 Population: 103,038


ITEM 5 (continued)


Council Grant Categories and principles Directed Grant Funding per capita population

Parramatta A broad range of community grants categories based on the principles of Community Capacity Building and innovative projects addressing emerging needs in the community.


Current Context of Historical Grants funding: The community sector funding has undergone major reduction since the discretionary funding changes were announced by the federal government in late December 2014. This resulted in major cuts to the funding of services such as emergency relief and Financial Counselling Programs delivered by the community aid sector. In early 2015 Council, in consultation with the sector, proactively commenced Arresting Vulnerability Project to address relevant public policy changes. In the first phase of the project, City of Ryde undertook research to map key community issues such as housing affordability, food insecurity and an emergence of pockets of disadvantage within the City of Ryde. One of the actions from the report was to initiate a dialogue with the local organisations active in addressing vulnerability in the community. A reference group of key community organisations has been set up as a result of this research with a purpose of providing ongoing oversight to formulate policy and program responses to the emerging social challenges within the community. There has been an emergence of new services addressing social disadvantage including issues related to refugee communities and Ivanhoe Estate transition. Organisations such as Catholic Care, The Salvation Army have been at the forefront of addressing these challenges. Options:

As a result of the review of the Historic Grants funding program and in consideration of the funding challenges faced by the community support sector, it is recommended that funding continues to the community aid organisations and opportunities of additional funding is made available to other Organisations within Ryde that provide social support services to our community. Based on this approach four options were presented to Council to in February 2016.


ITEM 5 (continued)


A summary of the options is presented in the table below: Option 1 Funding to community aid organisations: Traditional closed funding open to 3

existing organisations

Key Features Pros Cons

New Grant category supporting the current activities of only community aid organisations.

Enhanced accountability - funding through application.

Focused only on community aid organisations. Not in the accordance with the grant review process in particular equity.

Funding based on demonstrated outcomes achieved by these organisations using all funding streams.

Flexible approach focused on key community outcomes.

Outcomes are difficult to attribute to a single funding stream.

Annual funding provided at current levels with new reporting guidelines

No funding reduction. Resources required to complete funding applications based on outcomes and measurable deliverables

Organisations can apply jointly or individually.

Facilitates collaboration.

Option 2 Funding to all organisations active in Arresting Vulnerability: City wide program open to wider not-for-profit organisations addressing emerging needs.


New Grant category inclusive of organisations aligned with Arresting Vulnerability agenda.

Availability of funding to a broader group of services- funding through application process.

Competition for funds in the sector. Community aid organisations no longer guaranteed.

Organisations to demonstrate outcomes linked to funding allocated by CoR

Enhanced accountability Resources required to complete funding applications based on outcomes and measurable deliverables


ITEM 5 (continued)



2-3 year funding cycle available. No funding reduction. Longer time frame provides Organisations opportunity to demonstrate Social Impact.

Funds are locked in. A complex structure to implement the 2-3 year funding cycle.

Organisations can apply jointly or individually.

Facilitates collaboration and innovation.

Less funding available for the wider range of organisations.

Option 3 A split model: Quarantined ongoing funding for community aid organisations and additional funding is available to organisations providing support services within Ryde.


New Grant category inclusive of organisations aligned with Arresting Vulnerability agenda.

Availability of funding to a broader group of services- funding through application process.

Competition for funds in the sector.

50% of total funding committed to community aid organisations.

Stability in funding to community aid organisations.

Less funding available for the wider range of organisations.

2-3 year funding cycle available No funding reduction. Longer time frame provides organisations opportunity to demonstrate Social Impact.

Funds are locked in. A complex structure to implement the 2-3 year funding cycle.

Organisations can apply jointly or individually

Facilitates collaboration and innovation.


ITEM 5 (continued)


Option 4 Status Quo


Continue funding the community aid organisations based on current arrangements.

No funding reduction. Contrary to the guiding principles. No funding available for all organisations working to deliver social support services.

Continue funding based on historical arrangements. Current funding is not project based- fund operational/ staff costs.

Sustainability of the organisations is compromised. Innovation is limited Limited accountability

Preferred Option: Option 3 is the preferred approach. Support to this option was expressed at the Councillor’s workshop. This option proposes:

a dedicated funding allocated to community aid organisations to maintain certainty of funding and to reflect Council’s ongoing support to the work of community aid organisations in meeting community needs.

funding is made available to other organisations within Ryde that provide social support services to our community. This additional funding would:

o ensure that Council enhances its capacity to fund emerging

organisations providing key social support services to the local community.

o encourage collaboration and innovation by encouraging organisations

to work in partnership to leverage the funding opportunity by having an option to apply jointly for projects.

o assist in ensuring that funding for these organisations can be

sustained into the future.

increase the funding available for community organisations from $80,000 to $120,000.


ITEM 5 (continued)


It is recommended that the Category of Historical Grants ceases and a new category Social Support Grants is proposed to address the emerging needs in the community. It is suggested that a review of this grant category be conducted within 5 years or within the context of a broader Council entity. Implementation of Social Support Grants:

1. Outcome Framework for measuring impact of Social Support Grants

Program:

The consultations held with community aid organisations indicated that clear outcomes attached to the community aid funding is a fair and transparent way in implementing the Social Support Grants into the future. The Outcomes Framework provides an approach to help fully understand and measure whether the services being funded and the projects delivered are having a real and lasting impact on people’s lives. Traditionally social services have measured inputs, such as the amount of funding provided, and outputs, such as the number of services delivered. The outcomes framework extends this measurement to achieving long term impacts in the community. It is proposed to implement the following outcomes framework to manage Social Support Grant funding. This outcomes framework will guide the annual grants acquittal process and will be consistent with the annual reporting requirements for all state and federal funding received by the Organisations. Key features of the outcomes model will include:

1. An outcomes and evidence based model to measure short, medium and long term outcomes.

2. The guiding principles of access, equity, transparency and accountability will be built into the Social Support grants program.

3. Outcomes related to “Arresting Vulnerability’ research will inform the overall

outcomes of the funding.

4. Accountability regarding the allocation / expenditure of the funds as each organisation as part of the application process will be required to demonstrate community benefit and measurable outcomes.


ITEM 5 (continued)


The three community aid organisations are currently reviewing their operating and business models in the context of significant aging and disability policy changes at the State and Federal levels, given their core aging and disability focus and heavy reliance on State and Federal grant income. In particular the introduction of the National Disability Strategy and the National Disability Insurance Scheme and commensurate changes to associated funding policies as well as the transfer of responsibility for ageing policy to the Commonwealth will have significant impact on the operations of the three organisations.

The introduction of an outcomes framework will provide an opportunity to the organisations who are recipients of Social Support Grants, to showcase their achievements and enhance their capabilities in reporting against measurable outcomes. The following diagram outlines the outcome framework and the cascading levels of measurable impact created by funding.


ITEM 5 (continued)



ITEM 5 (continued)


2. Criteria for application for Social Support Grants:

Social Support grants aim to provide assistance to local organisations in the provision of programs such as, information and referrals, food subsidies, financial counselling, financial assistance and reducing social isolation to improve the life and living conditions of the to the vulnerable people within the community including families and children, people with disability, the elderly, and the disadvantaged. Eligibility:

To be eligible for funding, an organisation must:

Be not-for-profit

Be Incorporated or have evidence of auspice from an incorporated organisation

Be located within City of Ryde or principally service Ryde residents

Be open to the general public and not discriminatory

Have acquitted any previous City of Ryde funding received Ineligibility:

The City of Ryde does not provide grants for:

Projects that duplicate existing services or programs

Projects that do not meet the identified priority needs of the City of Ryde

Projects that directly contravene existing Council policy

3. Grant Implementation process:

Social Support Grants will be based on an annual application process. The grants will be implemented in two sub- categories:

a. Social Support Grant 1 (community aid organisations) will continue Council’s support to the existing community aid organisations. A total funding of $60,000 is proposed within this category to fund these organisations on an ongoing basis.

Council is to note - although there will be a net loss of $20,000 to the existing community aid funding, these funds from the historical grant pool will be reallocated to the new Social Support Grants Program and will be available to all eligible community organisations to develop and deliver projects to improve community wellbeing. The following mechanism will be implemented to achieve this outcome:


ITEM 5 (continued)


An annual grant of $15,000-$20,000 per organisation will be provided.

This grant will be accessed on an annual basis through an application process.

Organisations will be required to acquit the funds at the end of the annual grant funding cycle.

b. Social Support Grants 2 (open to organisations active in the provision of social

services within the local community including the 3 community aid organisation). A total funding of $60,000 is proposed. The following mechanism will be implemented to achieve this outcome:

An annual grant of maximum $10,000 will be provided to community organisations delivering social support and services within the City of Ryde.

This grant will be accessed on an annual basis through an application process.

Organisations can apply individually or jointly for this grant.

Organisations will be required to acquit the funds at the end of the annual grant funding cycle.

Within each category, there will be improved accountability regarding the allocation/ expenditure of the funds as each organisation as part of the application process will be required to demonstrate community benefit and measurable outcomes. Any final funding changes will only be implemented from the financial year 2017-18 providing enough time for transition. The mechanism for the implementation for preferred option will be further discussed with CCA, NRCA and HHRCS so that the process for grant application and acquittal is not onerous. Financial Implications

Should Council resolve to adopt the recommendations of this report, it will result in a financial impact of $120,000 and this requires additional funding of $40,000. Council it to note that $80,000 is budgeted annually under the Historic Grants Program. This expenditure is in line with the proposed recommendations to maintain continuity of funding to the exiting community aid organisations and to expand the grants program to other emerging social services organisations.


ITEM 5 (continued)


It is to be noted that the community aid funding has not gone through a CPI increase over the last ten years. The added funding of $40,000 creating a pool of $120,000 is considered appropriate for the new grants category. If the funds had been increased by CPI over the last 10 years, at the rate of approximately 3% per annum, the current level of funding would be 103,000 per annum

Project Name Current approved budget

Estimated cost Surplus/(Deficit)

Historical Grants (Community Aid)

$80,000 $120,000 $40,000

It is recommended that Council allocates the amount of $40,000 from General Revenue for the purpose of Social Support Grants and that the amount is consolidated into the budget for 2017-2018. Implementation Time Frame for Social Support Grants It is proposed to introduce the Social Support Grant in 2017/2018. This time frame was discussed with the 3 community aid organisations in February 2016 and they each indicated support for this timeframe.



6 COMMUNITY HALLS AND MEETING ROOMS HIRE POLICY

Report prepared by: Manager - Community Services File No.: CSG/14/3/22/1 - BP16/430

REPORT SUMMARY

This report proposes that Council endorse the Draft Community Halls and Meeting Rooms Policy and details the reasons and benefits of Council adopting this Policy. The purpose of this Policy is to establish a framework for the allocation and management of Council’s Community Halls and Meeting Rooms on an annual basis. This Policy does not include any Council facility that is under a licence or lease with Council. Currently, Council has no documented policies, guiding principles or legal instrument of hire that manages the hire of Council’s Halls and Meeting Rooms. The Policy includes key principles that will guide the process for allocating and managing Council’s halls and meeting rooms. The Draft Policy requires an annual application from regular hall users and acknowledges current historical arrangements with various groups and users. The Policy states that Council will honour these arrangements and work with each group to ensure there is a smooth transition in implementing this Policy. Overall, the draft Policy will provide opportunities for all prospective regular hirers to be accommodated where possible and emphasizes the need for groups to work with each other and Council, in achieving positive outcomes. The Draft Policy is recommended for Council’s endorsement in order for Council to optimise the use of Council’s Halls and Meeting Rooms in a transparent, equitable and financially sustainable manner.

RECOMMENDATION: That Council endorse the Draft Community Halls and Meeting Rooms Hire Policy.

ATTACHMENTS 1 Community Hall Policy - March 2016 Report Prepared By: Paul Chidzero Manager - Community Services

Report Approved By: Roy Newsome Acting Director - Corporate and Community Services


ITEM 6 (continued)


Background Community Service Obligations (CSOs)- Community Halls

Council considered a report at its meeting on the 23 February 2016 from the Finance and Governance Committee, which detailed Council’s Subsidies and Discounts in Services. This report outlined that Council’s estimated annual CSOs was $24.56 million, with the details provided in that report. The report detailed that the CSOs relating to the Fees and Charges for Community Halls was $0.047 million. In addition, the report detailed the estimated free hall hire provided by Council, some for its own use, was estimated at $0.189 million. In total, an estimated annual estimated CSO of $0.236 million is provided by Council to various hall hirers. While Council does provide significant assistance through subsidies and discounts to hirers of Council’s Halls and Meeting Rooms, this assistance is provided with Council being under pressure to satisfy the needs and demands from the community for further access to its community facilities. Budget Overview In the 2015/2016 year, Council is on track to meet the budget of $467,610 with $438,130 of actual income being received as at the end of April 2016. It also should be noted that Council’s Community Halls with the exception of the West Ryde Community Hall, are generally in satisfactory condition and in need of renewal. Council’s community halls were identified in the current Asset Sub Plans of requiring additional renewal funds. Overview of 2014/2015 Community Hall and Meeting Rooms Use and Regular Users The following high level breakdown is provided in respect of the number of regular users and bookings of Council’s Halls and Meeting Rooms for the 2014/ 2015 year;

Hall Number of Regular Users

Total Bookings

Civic Hall 13 613

North Ryde School of Arts 15 602

North Ryde School of Arts Meeting Room

4 224

Eastwood Hall 10 662

Eastwood Meeting Room 7 708

Marsfield Community Centre

10 438


ITEM 6 (continued)


Hall Number of Regular Users

Total Bookings

Shepherds Bay 11 574

West Ryde Community Hall 12 591

West Ryde Community Centre Meeting Room

6 345

Gladesville Library Meeting Room

9 254

Eastwood Womens Rest Centres

10 461

In 2014/2015 there were 5,823 bookings, from 111 regular hirers and 90 casual hirers. The demand for Council’s Halls and Meeting Rooms are in the following peak times;

Halls

Monday - Friday 9am-2pm 5pm-9pm

Saturday 9am-1pm 6pm - Midnight

Sunday Full capacity

Meeting Rooms

Monday - Friday 9am-5pm (Limited availability)

There are also a number of share arrangements that exist between hall users and licensed community buildings, which exist mainly in the West Ryde Community Centre and Meeting Rooms, Eastwood Hall and Eastwood Womens’ Rest Centre. Discussion

Therefore, as detailed in this report, it is strongly recommended that Council endorse the Draft Community Halls and Meeting Rooms Policy. As stated earlier in this report, Council currently has no policies, guidelines or legal instruments in managing the hire of its halls and meeting rooms.


ITEM 6 (continued)


The Draft Policy will require an annual application from hirers who intend to hire Council’s Halls and Meeting Rooms on a regular basis, thereby ensuring all current and prospective hirers are given an opportunity to access Council’s facilities. Each year in March, when applications are being requested, Council will write to all existing hirers and those that have expressed an interest, requesting they make an application. This Policy does not apply to any Council facility that is under a license or lease with Council. The Draft Policy’s Objectives are;

- Establish the principles that guide the allocation and management process for the hire of Council’s halls and meeting rooms;

- Establishes a management model that defines the criteria that is required to be met;

- Establish ownership for any existing or new upgrades under Council’s permit agreement; and

- Establish the protocols for accepting and assessing applications. The Draft Policy details the principles that will guide the allocation of Council’s Community Halls and Meeting Rooms. The Principles are;

- Fairness and Impartiality; - Transparency of Process; - Equitable Usage; - Co-Location and Sharing of Facilities; - Multi-Purpose; and - Financial Sustainability.

The Principles reinforce Council’s objective to ensure access to Council’s facilities are optimized and managed fairly and professionally. The Draft Policy also defines the legal instrument of a permit will be used for the hire and defines the types of entities that can apply to hire Council’s facilities, the criteria and conditions to be met when hiring a facility and the term of the agreement. Through the introduction of this Policy will allow regular hirers to better plan for their requirements across the financial year, assist in managing allocation conflicts and minimize the impacts on casual hirers through the course of the year. The Policy acknowledges there are currently historical arrangements in place with various hirers. In line with the Draft Policy, Council will honour these arrangements for a period of up to 6 months and then will provide a report to Council to confirm these arrangements. Council’s staff will work closely with each group to achieve positive outcomes for all users.


ITEM 6 (continued)


Financial Implications Adoption of the recommendation will have no financial impact. Options Option 1 That the Draft Community Halls and Meeting Rooms Policy be adopted. This option is recommended. Option 2 That Council maintains the status quo, under the current arrangements. This option is not recommended due to the exposure in Council’s existing system.

F

ina

nce

an

d G

overn

an

ce

Co

mm

itte

e

Pa

ge

96

ITE

M 6

(c

on

tin

ue

d)

AT

TA

CH

ME

NT

1

Ag

en

da

of

the

Fin

an

ce

and

Go

vern

an

ce C

om

mitte

e R

ep

ort

No. 4

/16

, da

ted

Tu

esda

y

17

Ma

y 2

01

6.

F

ina

nce

an

d G

overn

an

ce

Co

mm

itte

e

Pa

ge

97

ITE

M 6

(c

on

tin

ue

d)

AT

TA

CH

ME

NT

1

Ag

en

da

of

the

Fin

an

ce

and

Go

vern

an

ce C

om

mitte

e R

ep

ort

No. 4

/16

, da

ted

Tu

esda

y

17

Ma

y 2

01

6.

F

ina

nce

an

d G

overn

an

ce

Co

mm

itte

e

Pa

ge

98

ITE

M 6

(c

on

tin

ue

d)

AT

TA

CH

ME

NT

1

Ag

en

da

of

the

Fin

an

ce

and

Go

vern

an

ce C

om

mitte

e R

ep

ort

No. 4

/16

, da

ted

Tu

esda

y

17

Ma

y 2

01

6.

Confidential Items Page 100


CONFIDENTIAL ITEMS

7 ADVICE ON COURT ACTIONS

Confidential This item is classified CONFIDENTIAL under Section 10A (2) of the Local Government Act, 1993, which permits the meeting to be closed to the public for business relating to the following: (g) advice concerning litigation, or advice as comprises a discussion of this matter, that would otherwise be privileged from production in legal proceedings on the ground of legal professional privilege.

Report prepared by: Solicitor File Number: GRP/09/5/8 - BP16/508 Page Number: 101

finance and governance committee agenda no. 4/16...may 17, 2016 · updated as at 30 june 2015. the...

Documents