ordinary council meeting agenda - leeton shire · 4/18/2018 · destination riverina murray (drm)...

ORDINARY COUNCIL MEETING

AGENDA 18 APRIL 2018

7.00PM

TO BE HELD IN THE

COUNCIL CHAMBERS 23-25 CHELMSFORD PLACE

LEETON NSW 2705

Authorised for release: Jackie Kruger General Manager

LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday, 18 April 2018

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LEETON SHIRE COUNCIL

AGENDA

ORDINARY COUNCIL MEETING

18 April 2018

7.00PM

______________________________________________________________ 1. CIVIC PRAYER 2. ACKNOWLEDGEMENT OF COUNTRY 3. APOLOGIES 4. CONFIRMATION OF THE MINUTES

RECOMMENDATION

THAT the Minutes of the Ordinary Council Meeting held on Wednesday, March 28 2018, as circulated, be taken as read and CONFIRMED.

THAT the Minutes of the Confidential Ordinary Council Meeting held on Wednesday, March 28 2018, as circulated, be taken as read and CONFIRMED.

THAT the Minutes of the Extraordinary Council Meeting held on Thursday, April 5 2018, as circulated, be taken as read and CONFIRMED.

5. DECLARATIONS OF INTEREST 6. MAYORAL MINUTES (If any) 7. NOTICES OF MOTION (If any) 8. OFFICERS’ REPORTS (As listed)

GENERAL MANAGER’S MATTERS

8.1 THRIVE RIVERINA (REGIONAL TOURISM) MEMBERSHIP 2018-2020 .......................................................................................... 4


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CORPORATE AND COMMUNITY MATTERS

8.2 COMMUNITY STRENGTHENING GRANT SCHEME - YOUTH DEVELOPMENT GRANT - RAITH HENMAN .................................. 23

8.3 MINUTES OF WHITTON COURT HOUSE AND HISTORICAL MUSEUM COMMITTEE JANUARY 2018 ........................................ 30

8.4 INVESTMENTS REPORT MARCH 2018 ......................................... 36 9. STATEMENTS BY COUNCILLORS .............................................. 49 10. CLOSED COUNCIL – CONFIDENTIAL ITEMS

PUBLIC REPRESENTATION If any member of the public wishes to formerly address the Council in relation to a matter in this agenda they are to register to speak for a maximum of five (5) minutes by Tuesday 12 noon preceding the meeting. Contact Regina Butler – 6953 0938


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ETHICAL DECISION MAKING

AND CONFLICTS OF INTEREST A GUIDING CHECKLIST FOR COUNCILLORS, OFFICERS AND COMMUNITY COMMITTEES ETHICAL DECISION MAKING

Is the decision or conduct legal?

Is it consistent with Government policy, Council’s objectives and Code of Conduct?

What will the outcome be for you, your colleagues, the Council, anyone else?

Does it raise a conflict of interest?

Could your possible conflict of interest lead to private gain or loss at public expense?

Can the decision be justified in terms of public interest?

Would it withstand public scrutiny? CONFLICT OF INTEREST

A conflict of interest is a clash between private interest and public duty. There are two types of conflict: Pecuniary – regulated by the Local Government Act and Division of Local Government and, Non-pecuniary – regulated by Codes of Conduct and policy. ICAC, Ombudsman, Division of Local Government (advice only).

THE TEST FOR CONFLICT OF INTEREST

Is it likely I could be influenced by personal interest in carrying out my public duty?

Would a fair and reasonable person believe I could be so influenced?

Conflict of interest is closely tied to the layperson’s definition of “corruption” – using public office for private gain.

Important to consider public perceptions of whether you have a conflict of interest IDENTIFYING PROBLEMS

1st Do I have private interest affected by a matter I am officially involved in? 2nd Is my official role one of influence or perceived influence over the matter? 3rd Do my private interest conflict with my official role?

Whilst seeking advice is generally useful, the ultimate decision rests with the person concerned.

AGENCY ADVICE

Officers of the following agencies are available during office hours to discuss the obligations placed on Councillors, Officers and Community Committee members by various pieces of legislation, regulation and Codes.

Contact Phone Email Website

Leeton Shire Council 6953 0911 [email protected] www.leeton.nsw.gov.au

ICAC 8281 5999 [email protected] www.icac.nsw.gov.au Toll Free 1800 463 909

Division of Local Government 4428 4100 [email protected] www.dlg.nsw.gov.au

NSW Ombudsman 8286 1000 Toll Free

1800 451 524 [email protected] www.ombo.nsw.gov.au

mailto:[email protected]

http://www.leeton.nsw.gov.au/


http://www.icac.nsw.gov.au/


http://www.dlg.nsw.gov.au/


http://www.ombo.nsw.gov.au/


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GENERAL MANAGER’S MATTERS

ITEM 8.1 THRIVE RIVERINA (REGIONAL TOURISM) MEMBERSHIP 2018-2020

RECORD NUMBER 18/126

RELATED FILE NUMBER EF10/116

AUTHOR/S Acting Manager Communications and Marketing

APPROVER/S General Manager

SUMMARY/PURPOSE The purpose of this report is to seek endorsement from Council regarding participation in a revised regional tourism body, Thrive Riverina, from 2018 to 2020 including support of a Cooperative Marketing Campaign being prepared by Destination Riverina Murray (DRM) and Thrive Riverina.

RECOMMENDATION THAT Council: 1. Endorses membership of Thrive Riverina at an annual fee of $3,900 in the

2018/19 and $4,020 in the 2019/20 financial years. 2. Endorses a $5,000 commitment in the 2018/19 (Phase 1) and 2019/20 (Phase

2) financial years towards the Riverina Cooperative Marketing Campaign led by Destination NSW in close collaboration with Thrive Riverina and Destination Riverina Murray.

REPORT (a) Background

Leeton Shire Council has long been a supporter of regional tourism via Riverina Regional Tourism, as it was formerly known before the repositioning of this group just over 12 months ago to Thrive Riverina (short for The Riverina Visitor Economy). Following strategic planning sessions attended by key stakeholders from across the region during 2017, a new strategic direction has been developed for the revised tourism body. It includes a plan for the future direction, activities and role of Thrive Riverina for the next two years. This plan has been endorsed by Destination Riverina Murray (DRM), which views Thrive Riverina as a valuable combined tourism body.


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DRM is one of six Destination Networks established under Destination NSW (DNSW) by the State Government. Council’s Acting Manager Communications and Marketing was appointed as a Director of the Thrive Riverina Board at their Annual General Meeting held in November last year.

(b) Discussion

The structure and operations of regional tourism has changed over the past 12 months. As a result, Thrive Riverina was formed to maintain a common purpose amongst local government areas in our part of the larger Riverina Murray area. Importantly, Thrive Riverina works in collaboration with Destination Riverina Murray (DRM) to develop tourism in our region, and seeks to complement its work without duplication. The new strategic direction set for Thrive Riverina includes four main pillars, including: 1. Membership- Membership has been re-positioned to offer member councils

more benefits for a fairer fee, with the option to participate in marketing campaigns relevant to the individual needs of their council. Collectively, Thrive Riverina can have a more positive impact on tourism in the Riverina than any single Council on its own. Together we are stronger.

2. Digital Marketing- Riverina digital marketing platforms will be reinvigorated

with a story-telling approach with the former Riverina Regional Tourism website, Inside the Riverina website and Taste Riverina website to be rationalised and re-invigorated to create one inspirational travel website that encourages visitors to the Riverina. A working group of member councils and a representative from DRM will be created to inform and direct the website project with ongoing content meetings planned over the next two years.

3. Taste Riverina- Taste Riverina will transition from a month-long festival in

October to become a year-long marketing umbrella for food and wine related events across the region. In addition, the Taste Riverina brand will be used as a vehicle to take the Riverina to the city with out-of-region events planned for key audiences in Canberra and Sydney.

4. Cooperative Marketing- in conjunction with DRM and DNSW, Thrive Riverina

will implement a unified and scalable destination marketing campaign informed by the new Riverina-Murray Destination Management Plan that was launched in mid-March this year. The campaign for the Riverina region (valued at $250,000 based on a minimum of 10 member Councils participating) will leverage dollar-for-dollar funding from DNSW and will be of such a scale as to ensure significant media buying power is achieved through access to the expertise of DNSW’s marketing team. This campaign will create consistent regional branding for the Riverina that all local government participants including Leeton Shire Council can use to their advantage.


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One of the new incentives that membership of Thrive Riverina offers is a dedicated blogger known as the “Riverina Champion”. An engaging and proactive blogger will be recruited to act as a brand champion for the Riverina. Each week, the blogger will visit attractions, events, restaurants and other places of interest across the region and write about their experiences in a weekly blog published on the Thrive Riverina website and through their well-established social media platforms. The blogger will also record live Facebook sessions and share their content through other media, such as radio. Each member Council will receive a minimum of three blog articles per year as part of their membership fee. To have a truly representative voice for tourism in the Riverina and to achieve the strategic goals of this plan, a minimum of nine member Councils is required for Thrive Riverina to continue operating between 2018 and 2020. Working collaboratively with DRM and DNSW, Thrive Riverina will also help to coordinate a Riverina-wide Cooperative Marketing Campaign. The objective of the campaign is to stimulate increased visitation to the region, with a specific focus on destination marketing and brand positioning. To enable DRM to progress the expression of interest, a financial commitment is required from a minimum of 10 Riverina based local government areas (LGA’s) as per the budget. Commitment is to be indicated through Council’s response to the Thrive Riverina Prospectus by Monday 30 April 2018. It is important to note that investment in the Riverina campaign is open to all local government areas within the DRM region and not restricted to members of Thrive Riverina. However, membership of Thrive Riverina should be strongly considered as it will enable opportunities to pool funding and significantly leverage off the campaign through additional marketing activity. (c) Options

1. That Council supports both membership of Thrive Riverina and participation in

the Riverina Cooperative Marketing Campaign over Financial Years 2018/19 and 2019/20. Preferred option.

2. That Council only supports the optional buy in of the DRM Riverina Cooperative

Marketing Campaign for Financial Year 201819 and Financial Year 2019/2020. This is not recommended.

3. That Council only supports membership of Thrive Riverina for Financial Year

2018/19 and Financial Year 2019/20. This is not recommended.

4. That Council does not participate in any regional tourism initiatives. This is not recommended.


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IMPLICATIONS TO BE ADDRESSED (a) Financial

Membership of Thrive will cost $3,900 for 2018/19 and $4,020 for 2019/20. Participation in the Riverina Cooperative Marking Campaign will cost $5,000 in 2018/19 and $5,000 in 2019/20. All costs can be accommodated in Council’s Tourism budget where $12,485 is available per annum for “subscriptions”.

(b) Policy

Nil

(c) Legislative/Statutory

Nil

(d) Risk

It is important to ensure Leeton Shire Council receives fair exposure for its membership commitment to Thrive Riverina and marketing investment in the Riverina Cooperative Marketing Campaign. This will be closely monitored given the Acting Manager Communications and Marketing is a Board Director of Thrive Riverina. At the conclusion of the 2 year investment the return on investment should be evaluated. CONSULTATION (a) External

Leeton Tourism Network Group Chair Matt Gatt and Deputy Chair Tracey Valenzisi represented Leeton at an Industry Stakeholders Forum held in Griffith during November last year where regional tourism priorities were discussed to help formulate a new strategic direction for the Riverina region.

(b) Internal

The General Manager and Acting Manager Communications and Marketing participated in the Thrive Riverina Strategic Planning Workshop which was held in Leeton in late August last year. In November 2017 the Acting Manager Communications and Marketing was voted onto the Board of Thrive Riverina by industry operators and neighbouring Councils and will continue to have an active role in setting and achieving the future strategic aims for Thrive Riverina over the two year term of office.


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LINK/S TO THE DELIVERY PROGRAM/OPERATIONAL PLAN (DPOP) Under the Key Priority Area THEME 4 - “A THRIVING ECONOMY WITH GOOD JOBS” within Council’s adopted Delivery Program/Operational Plan – 13 - A community that has great attractions and events - 13b is to “Attract visitors to Leeton Shire region - Participate in regional tourism activities."”. ATTACHMENTS

1⇩ Thrive Riverina Membership and Regional Tourism Marketing Prospectus 2018-2020

2⇩ Destination Riverina Murray letter of support and Cooperative Marketing Campaign Outline

Ordinary Council Meeting - Wednesday, 18 April 2018 THRIVE RIVERINA (REGIONAL TOURISM) MEMBERSHIP 2018-2020

Attachment 1 - Thrive Riverina Membership and Regional Tourism Marketing Prospectus 2018-2020

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Page 13



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Page 15



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Attachment 2 - Destination Riverina Murray letter of support and Cooperative Marketing Campaign Outline

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CORPORATE AND COMMUNITY MATTERS

ITEM 8.2 COMMUNITY STRENGTHENING GRANT SCHEME - YOUTH DEVELOPMENT GRANT - RAITH HENMAN


RELATED FILE NUMBER

AUTHOR/S Community Development Coordinator

APPROVER/S Director Corporate and Community

SUMMARY/PURPOSE The purpose of this report is to advise Council of an application received for funding assistance through Council’s Community Strengthening Grant Scheme (CSGS) under the Quick Response, Youth Development Grant Category.

RECOMMENDATION That Council awards Raith Henman a $250 Youth Category Development Grant from the Quick Response part of the Community Strengthening Grant Scheme to assist with costs involved in representing Leeton and New South Wales at the 2018 New South Wales Primary Schools Sports Association Swimming Championships at Homebush on Wednesday 11 to Thursday 12 April 2018.


Council’s CSGS includes a ‘Youth Development’ Grant Category which is offered at a set amount of $250 and is available to support high achievement in a cultural, academic or sporting activity that requires attendance at a State, National or International level event. A request has been received from Raith Henman for financial assistance to represent Leeton and the Riverina at the 2018 New South Wales Primary Schools Sports Association Swimming Championships at Homebush on Wednesday 11 to Thursday 12 April 2018. The request was lodged with Council on 26 March 2018.

(b) Discussion

This application is seeking financial assistance to cover some of the costs associated in attending the 2018 New South Wales Primary Schools Sports Association Swimming Championships at Homebush on Wednesday 11 to Thursday 12 April 2018.


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(c) Options

1. Approve the application for a grant of $250 2. Reject the application for a grant of $250


Leeton Shire Council has an annual budget of $5,350 for its annual CSGS, Quick Response Category of the scheme. If this application is supported, funds of $795 will be left in the budget for 2017/2018. There is a further two (2) months remaining in the current financial year.

(b) Policy

Nil


Nil

(d) Risk

Nil

CONSULTATION (a) External

Staff have consulted with the parent/guardian of the applicant.

(b) Internal

Nil

LINK/S TO THE DELIVERY PROGRAM/OPERATIONAL PLAN (DPOP) Under the Key Priority Area THEME 6 - “STONG LEADERSHIP” within Council’s adopted Delivery Program/Operational Plan – 20 - A community that is always on the front foot - 20a is to “Ensure the aspirations of the community are delivered - Support the community by offering a Community Grants Program."”. ATTACHMENTS

1⇩ Raith Henman Application for Community Strengthening Grant Scheme

Ordinary Council Meeting - Wednesday, 18 April 2018 COMMUNITY STRENGTHENING GRANT SCHEME - YOUTH DEVELOPMENT GRANT - RAITH HENMAN

Attachment 1 - Raith Henman Application for Community Strengthening Grant Scheme Page 25


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ITEM 8.3 MINUTES OF WHITTON COURT HOUSE AND HISTORICAL MUSEUM COMMITTEE JANUARY 2018



AUTHOR/S Governance and Corporate Planning Coordinator

APPROVER/S Director Corporate and Community

SUMMARY/PURPOSE The Whitton Court House and Historical Museum Committee is a formal Section 355 Committee of Council and as such the minutes of the meeting are provided for Council’s information. Minutes are prepared by volunteers on the Committee and are presented as supplied to Council.

RECOMMENDATION THAT Council formally notes the Whitton Court House and Historical Museum Committee Minutes of Monday 15 January 2018.


The purpose of the Whitton Court House and Historical Museum Committee is:

To oversee the day to day operations of the Whitton Court House and Historical Museum as per the delegation issued by Leeton Shire Council.

To overview the strategic direction of the Whitton Court House and Historical Museum and provide reports and recommendations to the Council as considered appropriate.

To promote optimum usage of the Whitton Court House and Historical Museum.

To care for and maintain the facility through responsible day to day management.

To ensure the safety of the patrons of the Whitton Court House and Historical Museum.


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(b) Discussion

The following issues were discussed at the Whitton Court House and Historical Museum Committee Meeting held on 15 January 2018:

Honour Boards: Quotes were discussed and list of names for inclusion on the boards requires finalisation.

Awning Quotations: Only required to have one quote.

Hire Fees: Discussion held on setting fee structure to reflect actual costs.

Treasurer’s Report: Closing balance for the committee’s account was $5746.23.

(c) Options

Nil


The total cost of the maintenance is $9,900 and will be accommodated in Council’s Whitton Museum Capital Works budget, leaving a balance of $26,008. (b) Policy

Nil


Nil

(d) Risk

Nil


Nil (b) Internal

Council’s representatives on the Whitton Museum Committee are Mayor Paul Maytom, Deputy Mayor George Weston and Councillor Paul Smith.


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LINK/S TO THE DELIVERY PROGRAM/OPERATIONAL PLAN (DPOP) Under the Key Priority Area THEME 2 - “AN ACTIVE AND ENRICHED COMMUNITY” within Council’s adopted Delivery Program/Operational Plan – 8 – A community that values its heritage – 8ac is to “Support and showcase the history of our Shire – Support Whitton and Yanco Museums." ATTACHMENTS

1⇩ Minutes of the Whitton Court House and Historical Museum Committee January 2018

Ordinary Council Meeting - Wednesday, 18 April 2018 MINUTES OF WHITTON COURT HOUSE AND HISTORICAL MUSEUM COMMITTEE JANUARY 2018

Attachment 1 - Minutes of the Whitton Court House and Historical Museum Committee January 2018

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Page 34



Page 35


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ITEM 8.4 INVESTMENTS REPORT MARCH 2018



AUTHOR/S Finance and Customer Service Coordinator

APPROVER/S Manager Finance Director Corporate and Community

SUMMARY/PURPOSE The purpose of this report is to inform Council of the funds which have been invested over the month of March 2018.

RECOMMENDATION THAT the information contained in the Investments Report for March 2018 be noted.


This report is required to be prepared on a monthly basis and presented to an Ordinary Council Meeting as per Clause 212 of the Local Government (General) Regulation 2005 (the Regulation).

(b) Discussion

Leeton Shire Council has $20,845,134 invested with local branches of banks and credit unions in Leeton. This equates to 53.5% of the portfolio as at 31 March 2018.

The total current investment portfolio of $38,955,134 is invested in Approved Deposit Institutions which are regulated by the Australian Prudential Regulatory Authority (APRA).

A Summary of Investments (Attachment 1) and a Statement of Bank Reconciliation (Attachment 2) for the month of March 2018 is attached to this report.

The Summary of Investments details all of the investments held by Leeton Shire Council as at 31 March 2018. It is also details the institutions where the investments are held, how long the investments have been held by amount and percentage and finally splits the investments up between current (12 months or less) and non-current (over 1 year).


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The Statement of Bank Reconciliation details what Council has in its bank account at 31 March 2018 (after taking into account unpresented cheques, unpresented deposits and unpresented debits) compared to what Council has in its general ledger at 31 March 2018 (after taking into account any unprocessed bank statement transactions).

The table below details the monthly movements of investments for March 2018:

Opening balance – as at 1 March 2018 $ 36,904,049

Less:

Maturities (3) $ 3,000,000

Subtotal $ 33,904,049

Plus:

New investments (3) $ 2,500,000

Rollovers (2) $ 2,000,000

Business Online Saver (BOS) movements $ 551,085

Closing balance – as at 31 March 2018 $ $38,955,134

Two investment maturities, one with the Westpac Bank in Leeton and the other with St George Bank, were rolled over for the month of March. One maturity, with Bank Australia, was redeemed and invested with the Bank of Queensland. A new investment Term Deposit (TD) of $500,000 was taken up with the Police Credit Union (SA) and a new Floating Rate Note (FRN) of $1,000,000 was taken up with the Auswide Bank. The following table details the breakup of investments according to the restrictions that are placed on them:

Total Investments $ 38,955,134

Less restrictions

Water Supply $ 12,316,106

Sewerage Services $ 7,737,383

Other external restrictions $ 4,944,585

Internal restrictions $ 12,105,765

Total restrictions $ 37,103,839

Net unrestricted investments $ 1,851,295

External Restrictions can only be used for the purposes for which they were raised. These include water, sewer, domestic waste operations and unexpended specific purpose grants. Internal restrictions are funds set aside by a Council resolution, usually through adoption of the budget or the quarterly budget review process. Internal restrictions can be set aside to fund specific items such as plant replacement, infrastructure renewal, unplanned building renewal or liabilities such as Employee Leave Entitlements (ELE).


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Unrestricted cash is used to provide working capital for Council to fund short term operations and fluctuations in payables and receivables. The level of unrestricted cash can vary contingent upon the level of outstanding creditors and debtors at month end. The Reserve Bank of Australia (RBA) elected to keep the cash rate on hold during its meeting in early March, with the cash rate remaining unchanged at 1.50% since August 2016. Reserve Bank Governor, Dr Philip Lowe, said the RBA expected the Australian Gross Domestic Product (GDP) growth to be higher in 2018 than it was in 2017. Council had an average yield on their investments of 2.84% for the month of March 2018.This is down one (1) basis point from February 2018 which was 2.85%. With cash rates likely to be unchanged in the near term, maximising portfolio returns becomes a matter of investing wisely when credit spreads are at their most attractive on a risk reward basis. Council staff continue to endeavour to get the best outcome when maturities occur, in line with Council’s investment policy. The following column graph compares monthly accrued interest with the revised budgeted interest for each month:


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The following line graph compares year to date interest with budgeted interest for the period:

A positive variance indicates that the actual investment income is tracking ahead of the revised budget at the end of March 2018. The following tables provide information on investment rates this year compared to last year as well as a comparison of investment balances from this year to last year:

Performance Measures This Year Last Year

Portfolio Average Interest Rate (year to date)

2.85% 2.97%

Investment Balances This Year Last Year

Opening Balance as at 1 July $37,693,935 $31,924,911

Month End Current Balance $38,955,134 $34,490,106

Lehman Brothers There is no further news in regards to the Lehman Brothers matter for March 2018.

(c) Options

Nil


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The rate of return of 2.84% for March 2018, across the portfolio is less than the budgeted amount of 3.0% for the Financial Year. However, due to the level of funds in Council’s investment portfolio, interest earned continues to track above the revised budget. The consolidated actual investment income from 1 July 2017 to 31 March 2018 (YTD) along with the consolidated revised budgeted investment income for the same period (YTD), compared to the revised budgeted annual investment interest is detailed below:

Revised Annual Budget (Interest) – 1 July 2017 to 30 June 2018 $1,000,000

YTD Actual Interest – 1 July 2017 to 31 March 2018 $785,789

YTD Revised Budget Interest – 1 July 2017 to 31 March 2018 $750,000

TYD Variance - Positive $35,789

(b) Policy

All funds are invested in accordance with Leeton Shire Council’s Investment Policy. Investments obtained are to be considered in light of the following key criteria: • No Institution at any time shall hold more than 45% of Council’s total investments

when the investment was first made. The maximum will be determined by the short term rating of the institution viz A1+ up to 45%, A1 up to 35% and A2 up to 30%.

• The Trustee Act provides for investments with Building Societies and Credit

Unions. Whilst they are not rated, they are now covered under Financial Prudential legislative controls.

• The maximum amount of funds invested with a Building Society/Credit Union will

be 5% of Council’s total investments at the time the investment was placed. Not more than 40% of Council’s portfolio should be held with Building Societies/Credit Unions in total at the time of placing each investment.

• Council’s investments should be placed in an appropriate mixture of short term

(0 – 1 year) and medium term (1 – 5 years) categories according to Council’s funding requirements and risk profile at the time of placing each investment.

Council’s Portfolio Compliance


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Asset Allocation The majority of the portfolio is directed to fixed term deposits (87.60%), followed by floating rate notes (FRNs) (7.70%). The remainder of the portfolio is held in the overnight cash account with Commonwealth Bank of Australia (4.70%). With deposit margins tightening, Council’s advisors suggest Council consider increasing its allocation to liquid senior floating rate notes (FRNs) into the portfolio. This will not only provide potential upside with regards to the portfolio’s investment returns, but also additional liquidity (FRNs are saleable – generally accessible within 2 business days). Term to Maturity Overall, the portfolio remains lightly diversified from a maturity perspective with deposits maturing out to 3 years. There is significant capacity to invest in 2-5 year investments. Our Investment Advisors recommend surplus funds excess to liquidity requirements be allocated to new senior FRN issues and fixed/floating rate term deposits. Counterparty As at the end of March, Council did not have an overweight position to any single Authorised Deposit Taking Institution (ADI). The portfolio is well diversified across the entire credit spectrum, including the unrated ADIs. The regional and unrated ADI sector continue to remain solid, incorporate strong balance sheets, while exhibiting high levels of capital – typically, much higher compared to the higher rated ADIs. Some unrated ADIs have up to 25-40% more capital than the domestic major banks, and well above the Basel III requirements. Overall, the lower rated ADIs (BBB and unrated) are generally now in a better financial position than they have been historically We are advised that deposit investments with the lower rated ADIs should be continued going forward, particularly when they offer ‘above market’ specials. Not only does it diversify the investment portfolio and reduce credit risk, it also improves the portfolio’s overall returns. Credit Quality The portfolio remains well diversified from a credit ratings perspective with the portfolio spread across the entire credit spectrum. From a ratings perspective, the “BBB” rated banks now generally dominate the number of ADIs within the investment grade space. The most attractive assets from senior debt securities are generally offered by these ADIs.


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All aggregate ratings categories are within the Policy limits:

Note: The Floating Rate Note (FRN) investments have been calculated on the market to market value on 31 March. Hence the slight variance to the investment portfolio value. This would only impact if the investment was sold prior to maturity.

A credit rating is an evaluation of the credit risk of a prospective financial institution predicting their ability to pay back the investment and interest at maturity and an implicit forecast of the likelihood of the institution defaulting. The credit rating represents an evaluation of a credit rating agency of the qualitative and quantitative information for the prospective institution, including information provided by the prospective institution and other non-public information obtained by the credit rating agency's analysts.

A credit rating may provide an investor with an indicator as to the relative risk of investing in an investment bond or security. In general terms, the lower the credit rating, the greater the risk to the investor. When considering the credit rating on an investment, an investor should look at the following:

1. The credit rating of the issuer

2. The complexity of the product

3. The credit rating of the security

The credit ratings are an opinion based on the creditworthiness of the company issuing the security and are assigned by Australia Ratings based on publicly available information at a point in time. It follows an alphabetical indicator of ‘AAA’, ‘AA’, ‘A’, ‘BBB’ etc. For example, the Australian Government as Issuer of AGBs – treasury bonds and treasury index bonds is assigned a credit rating of “AAA” which is the highest credit rating that can be assigned.

If a company is unrated, it does not necessarily mean that its interest rate securities are high risk, but it does mean that investors will have to turn to other means to evaluate its financial strength or the security's complexity. An investment adviser or broker may be able to assist with company research data. Council ensures that due diligence is performed for all investments.


All funds are invested in accordance with Section 625 of the Local Government Act, 1993 (the Act) and the Ministerial Investment Order.


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(d) Risk

The following table provides information on investment types including a risk assessment and the amount and percentage invested compared to the total investment portfolio:

Investment Type Risk Assessment Amount $'000

% of Portfolio

Capital Interest

Term Deposits Low Low 34,110 87.60

Cash/At Call Deposits Low Low 1,845 4.70

Floating Rate Notes Low Low 2,998 7.70

TOTAL 38,953 100.00


Council’s investment advisors are Amicus Advisory and Imperium Markets. Both of these investment advisors were contacted by staff for advice during the month of March 2018.

(b) Internal

Nil LINK/S TO THE DELIVERY PROGRAM/OPERATIONAL PLAN (DPOP) Under the Key Priority Area THEME 6 - “STONG LEADERSHIP” within Council’s adopted Delivery Program/Operational Plan – 20 - A community that is always on the front foot - 20a is to “Ensure the aspirations of the community are delivered - Operate an efficient and effective Local Government Administration."

ATTACHMENTS 1⇩ Summary of Term Investments as at 31 March 2018 2⇩ Statement of Bank Reconciliation 31 March 2018

Ordinary Council Meeting - Wednesday, 18 April 2018 INVESTMENTS REPORT MARCH 2018

Attachment 1 - Summary of Term Investments as at 31 March 2018 Page 44


Attachment 2 - Statement of Bank Reconciliation 31 March 2018 Page 48


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STATEMENTS BY COUNCILLORS

The Statement by Councillors section of the agenda is to formally provide an opportunity for Councillors or staff to bring forward important or urgent issues in accordance with the provisions of Clause 241 of the Local Government (General) Regulation.

Clause 241 states: 241 Giving notice of business “(1) A Council must not transact business at a meeting of the Council:

a) Unless a Councillor has given notice of the business in writing within such time before the meeting as is fixed by the Council’s code of meeting practice or (if the Council does not have a code of meeting practice, or its code of meeting practice does not fix that time) as is fixed by resolution of the Council; and

b) Unless notice of the business has been sent to the Councillors in accordance with section 367 of the Act.

(2) Subclause (1) does not apply to the consideration of business at a

meeting if the business:

(a) Is already before, or directly relates to a matter that is already before, the Council; or

(b) Is the election of a chairperson to preside at the meeting as provided by clause 236 (1); or

(c) Is a matter or topic put to the meeting by the chairperson in accordance with clause 243; or

(d) Is a motion for the adoption of recommendations of a committee of the Council

(3) Despite subclause (1), business may be transacted at a meeting of a

Council even though due notice of the business has not been given to the Councillors. However, this can happen only if:

(a) A motion is passed to have the business transacted at the

meeting; and

(b) The business proposed to be brought forward is ruled by the chairperson to be of great urgency.

Such a motion can be moved without notice. (4) Despite clause 250, only the mover of a motion referred to in subclause

(3) can speak to the motion before it is put.”

ordinary council meeting agenda - leeton shire · 4/18/2018 · destination riverina murray (drm)...

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