Administrative Centre

30 Frances St

Randwick 2031

Tel: 02 9399 0999

Fax 02 9319 1510

DX 4121 Maroubra Junction

general.manager@randwick.nsw.gov.au

INCORPORATED

AS A MUNICIPALITY

22 FEBRUARY 1859

PROCLAIMED AS

A CITY JULY 1990

 

5th April, 2005

 

 

ADMINISTRATION AND FINANCE COMMITTEE MEETING

 

NOTICE IS HEREBY GIVEN THAT AN ADMINISTRATION AND FINANCE   COMMITTEE MEETING OF THE COUNCIL OF THE CITY OF RANDWICK WILL BE HELD IN THE COUNCIL CHAMBER, TOWN HALL, 90 AVOCA STREET, RANDWICK, ON TUESDAY, 12TH APRIL, 2005 AT 6:00 P.M.

 

Committee Members:                  His Worship the Mayor, Cr M. Matson, Crs Andrews, Daley, Hughes (Deputy Chairperson), Kenny, Nash, Procopiadis & Seng (Chairperson.)

 

Quorum:                                      Five (5) members.

 

NOTE: AT THE EXTRAORDINARY MEETING HELD ON 28TH SEPTEMBER, 2004, THE COUNCIL RESOLVED THAT THE ADMINISTRATION AND FINANCE COMMITTEE BE CONSTITUTED AS A COMMITTEE WITH FULL DELEGATION TO DETERMINE MATTERS ON THE AGENDA.

 

1           Apologies

 

2           Minutes

 

CONFIRMATION OF THE MINUTES OF THE ADMINISTRATION & FINANCE COMMITTEE MEETING HELD ON TUESDAY, 8TH MARCH, 2005.

 

3           Declaration of Pecuniary & Non-Pecuniary Interests

 

4           Addresses to Committee by the Public

 

5           Mayoral Minutes

 

6           Finance

 

6.1                      

DIRECTOR, GOVERNANCE & FINANCIAL SERVICES' REPORT 17/2005 - COUNCILLORS' DONATIONS FOR THE 2004/2005 FINANCIAL YEAR.

2

 

6.2                      

DIRECTOR, GOVERNANCE & FINANCIAL SERVICES' REPORT 18/2005 - INVESMENT OF COUNCIL FUNDS AS AT 28 FEBRUARY 2005.

6

 

 

7           General Business

 

8          Notice of Rescission Motions

………………………………

GENERAL MANAGER


 

Director, Governance & Financial Services' Report 17/2005

 

SUBJECT:

COUNCILLORS' DONATIONS FOR THE 2004/2005 FINANCIAL YEAR

 

 

DATE:

24 March, 2005

FILE NO:

F2004/07396 xr F2005/00182

 

REPORT BY:            DIRECTOR, GOVERNANCE & FINANCIAL SERVICES   

 

 

INTRODUCTION:

 

To keep Councillors aware of the progressive amount of Councillors’ donations, allocations, waiving of fees and other similar issues for the current financial year.

 

ISSUES:

 

Since 1st July, 2004 there have been forty eight (48) Councillors’ donations totalling $116,635.26 as listed in the table below as at the date of this report.

 

MEETING

DETAILS

AMOUNT

Works Committee – 13th July 2004

Greek Glendi

($7,695.00)

Cancelled

Community Services Committee – 10th August 2004

National Association for Prevention of Child Abuse & Neglect

$540.00

Ordinary Council – 27th July 2004

Barry Watterson – Shakespearean Theatre

$3,114.30

Ordinary Council – 27th July 2004

POW Hospital

$1,085.00

Ordinary Council – 27th July 2004

Randwick Girls & Boys High Schools (Rock Eisteddfod)

$3,114.30

Ordinary Council – 27th July 2004

Dolphin Street Playgroup (Temporary Fencing)

$1,000.00

Ordinary Council – 24th August 2004

Maroubra Fun Run & Oktoberfest

$3,734.00

Ordinary Council – 21st September 2004

Regional Study of Changing Tourism Dynamics in Sydney (Backpackers)

$2,500.00

Ordinary Council – 21st September 2004

Bali Tragedy 2nd Anniversary Commemorations

$8,678.00

Ordinary Council – 19th October 2004

Des Renford Aquatic Centre Charity Day

$5,320.40

Ordinary Council – 19th October 2004

St George Coptic Church Fete

$796.00

Ordinary Council – 19th October 2004

South Maroubra Village Green Art Show

$85.00

Ordinary Council – 19th October 2004

South Maroubra Carols by Candlelight

$1,906.00

Ordinary Council – 19th October 2004

St Paul’s Anglican Church – Carols by the Sea

$1,871.80

Works Committee – 9th November, 2004

Salvation Army – BBQ

$210.00

Works Committee – 9th November, 2004

Salvation Army – Carols By Candlelight in Kokoda Park

$2,301.80

Works Committee – 9th November, 2004

Coogee & South Maroubra Surf Life Saving Clubs – Use of Beaches (Surf Carnivals)

$1,742.00

Works Committee – 9th November, 2004

Coogee Bowling  Club – Use of Goldstein Reserve (Bowls Mobile)

$1,330.00

Health, Building & Planning Committee – 9th November, 2004

UNSW Sustainable Living Centre – Sponsorship of Sustainable Schools Awards

$2,200.00

Health, Building & Planning Committee – 9th November, 2004

Association of International Students of Science, Economics & Commerce – Sponsorship of Sustainability Seminars Program

$2,500.00

Ordinary Council – 23rd November, 2004

Randwick City Tourism – Filming of Tourism Video

$1,625.00

Ordinary Council – 23rd November, 2004

Coogee Surf Life Saving Club – Use of Coogee Beach (ocean swim event)

$640.00

Ordinary Council – 23rd November, 2004

Coogee Chamber of Commerce – Use of Goldstein Reserve (Coogee Family Fun Day)

$5,305.50

Ordinary Council – 23rd November, 2004

Barry Watterson – Musical Events in Grant Reserve

$798.80

Ordinary Council – 23rd November, 2004

United Nations Development Fund for Women – Purchase of Ribbons for White Ribbon Day

$150.00

Ordinary Council – 14th December, 2004

Indonesian Welfare Association – Street Fair

$3,365.00

Ordinary Council – 14th December, 2004

 

Castellorizian Ladies Auxiliary – Carol Singing

$302.20

Ordinary Council – 14th December, 2004

Matraville Families First – Matraville Family Fun Day

$408.00

Ordinary Council – 14th December, 2004

Greek Orthodox Church of Australia – Greek Epiphany Celebration

$1,173.50

Ordinary Council – 14th December, 2004

Randwick Information & Community Centre- Removal Expenses

$4,000.00

Ordinary Council – 14th December, 2004

La Perouse Local Aboriginal Community – Christian Convention in Aid of Suicide Prevention

$1,987.50

Ordinary Council – 14th December, 2004

New Year’s Eve Fireworks – Coogee Beach

$5,000.00

Ordinary Council – 14th December, 2004

Welcome Overseas Students’ – Pilot Program

$3,500.00

Extraordinary Council – 27th January, 2005

Donation Tsunami Relief Appeal

$10,000.00

Extraordinary Council – 27th January, 2005

Sri Lankan Fundraiser Walk Centennial Park – Hire & Erection of Stage

$1,561.96

Works Committee – 8th February, 2005

Eastern Beaches Local Area Command –  Community v  Police  Cricket Day

$1,542.00

Works Committee – 8th February, 2005

Surf Life Saving Sydney Inc. – Use of Maroubra Beach

$855.00

Works Committee – 8th February, 2005

Trees for Mum Program – Use of Central Park

$1,200.00

Works Committee – 8th February, 2005

Grace  Point Christian Church – Clean Up Australia Day

$3,480.00

Works Committee – 8th February, 2005

Malabar RSL Swimming Club – Malabar Clear Water Classic Swim

$1,079.10

Administration & Finance Committee – 8th February, 2005

Indonesian Consul General – Tsunami Appeal Luncheon

$500.00

Administration & Finance Committee – 8th February, 2005

Friends of La Perouse Museum – La Perouse Commemoration Day

$3,700.00

Ordinary Council – 22nd February, 2005

Surfing NSW – South side Eliminations – Use of Maroubra Beach

$855.00

Ordinary Council – 22nd February, 2005

Living In Harmony Festival – Use of Goldstein Reserve

$8,338.00

Ordinary Council – 22nd March, 2005

Maroubra Surfers Organisation & Southend Boardriders

$4,025.00

Ordinary Council – 22nd March, 2005

Randwick Girls’ & Boys’ High School Rock Eisteddfod Team

$5,000.00

Ordinary Council – 22nd March, 2005

Wild Street, Church Festival

$1,534.80

Ordinary Council – 22nd March, 2005

Maroubra Swimming Club – Hire of DRAC

$680.00

TOTAL                                                                                                         $116,635.26

 

 

FINANCIAL IMPACT STATEMENT:

 

Council has allocated $140,000.00 in the 2004/2005 Budget, for contingencies.

 

RECOMMENDATION:

 

That the Director, Governance & Financial Services Report No. 17/2005 dated 24th March, 2005 in relation to the progressive amount of Councillors’ donations, allocations, waiving of fees and other similar issues for the current financial year be noted.

 

ATTACHMENT/S:

 

Nil

 

 

………………………………

………………………………

MARK HUMMERSTON

 

DIRECTOR, GOVERNANCE & FINANCIAL SERVICES

 

 

 

 

 

 

 


 

Director, Governance & Financial Services' Report 18/2005

 

 

SUBJECT:

INVESMENT OF COUNCIL FUNDS AS AT 28 FEBRUARY 2005

 

 

DATE:

15 March, 2005

FILE NO:

98/S/0745

 

 

 

REPORT BY:            DIRECTOR, GOVERNANCE & FINANCIAL SERVICES  

 

 

INTRODUCTION:

 

To report on Council’s current investments.

 

 

ISSUES:

 

Council is authorised by s625 of the Local Government Act to invest its surplus funds. Funds may only be invested in the form of investment notified by Order of the Minister dated 29 November 2000.

 

The Local Government Financial Management Regulations prescribe the records that must be maintained in relation to Council’s investments. The regulations also require that the responsible accounting officer provide a written report to each ordinary meeting of the Council giving details of all monies invested and a certificate as to whether or not the investments have been made in accordance with the Act, the regulations and Council’s Investment Policy No: 3.02.07.

 

Details of all investments are shown on the attachment sheet titled “Details of cash investments and analysis of investment performance as at 28 February 2005” and in the attached graphs.

 

FINANCIAL IMPACT STATEMENT:

 

The budget provision for income from this source is $2.825M.  Income to 28 February, 2005 is $1,924,924. On present trends our budget provisions should be met.

 

Council relies on a mixture of managed funds and some direct longer term deposits with Banks for its investments.  Councillors will note that we upgraded our expectations in the December Quarterly report, anticipating an income of $2.825M - an increase over the budget projection of $2.4M.  This increase has been achieved by two means.  First, in relation to managed funds, Council retains professional advisors to provide independent and objective advice on our investment portfolio, to ensure prudent investment of our funds.  Currently our objective is to invest seeking 50+ basis points above index with a high tolerance to monthly volatility, using a diversified selection of credit rated funds.  Recently Council closed out of the Deutsche Cash Plus Fund, the Macquarie Diversified Treasury Fund and the UBS Credit Enhanced Cash Fund, and switched into the Deutsche Income Fund, the ING Enhanced Cash Trust and the Merrill Lynch Diversified Credit Fund following advice from our advisors.

 

These adjustments to the portfolio were made during the current month and are expected to yield a higher result but there may be more volatility.  The increased yield overall from investments is the result of better returns together with additional funds being available over longer periods than was originally anticipated.  However, it is not expected that Council will be able to maintain this level of investment cash in the next budget, due to the capital works program which has been planned and which will require access to funds. This may be offset to some extent as the result of higher interest rates that will flow from recent adjustments to interest rates made by the Reserve Bank of Australia.

 

CONCLUSION:

 

All surplus cash has been invested as at 28 February 2005 in accordance with Policy No: 3.02.07 and the provisions of s625 of the Local Government Act have been complied with.

 

RECOMMENDATION:

 

That the “Director, Governance & Financial Services’ Report No. 12/2005 dated 15 March 2005 in relation to the investment of Council funds be noted.

 

ATTACHMENT/S:

 

1. Details of investments and analysis of investment performance as at 28 February 2005.

 

2. Graphs (7). 

 

 

 

 

 

 

 

 

………………………………

 

 

 

 

 

 

………………………………

MARK HUMMERSTON

BRIAN GREGAN

DIRECTOR, GOVERNANCE & FINANCIAL SERVICES

MANAGER, FINANCIAL SERVICES

 


DETAILS OF CASH INVESTMENTS AND ANALYSIS OF INVESTMENT PERFORMANCE

AS AT 28 FEBRUARY 2005

 

 

Investment Manager

 

Credit

Ratings

 

Amount Invested

 

 

Interest  Earned

February

 

Amount                  % Return

 

UBSWA

Bank Bill

Index   %

 

 

Interest Earned

Financial Year to Date

                       %

Amount       Return

 

UBSWA

Bank

Bill

Index

%

 

 

Interest Earned

Last 12 Months

 

                      %

 Amount    Return

 

UBSWA

Bank

 Bill

Index 

 %

 

***

 

$

$

Month

Annualised

For Period

#

$

 

 

$

 

#

LG Financial  Services 11am Call

AA

2,979,678

5,928

0.42

5.15

0.40

132,224

N/A

5.52

196,469

N/A

5.57

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LGFS Expanded Credit Facility

Af

10,053,370

52,200

0.52

7.02

0.40

371,467

6.29

5.52

523,560

N/A

5.57

 

 

 

 

 

 

 

 

 

 

 

 

 

Commonwealth Shield Series 12

AA

4,000,000

19,638

0.53

6.40

0.40

170,661

N/A

5.52

258,107

N/A

5.57

 

 

 

 

 

 

 

 

 

 

 

 

 

Commonwealth Shield Series 21

AA

1,000,000

 

12,145

1.11

14.17

0.40

 

57,972

N/A

5.52

 

57,972

N/A

5.57

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commonwealth Shield Series 24

AA

2,500,000

 

13,121

0.57

6.89

0.40

 

115,397

N/A

5.52

 

128,296

N/A

5.57

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Merrill Lynch Enhanced Credit

Af

6,524,033

28,259

0.54

6.47 +

0.40

234,705

6.15

5.52

381,785

6.16

5.57

 

 

 

 

 

 

 

 

 

 

 

 

 

Deutsche Income

Af

9,638,146

41,310

0.60

7.22 +

0.40

359,341

6.52

5.52

519,094

6.48

5.57

 

 

 

 

 

 

 

 

 

 

 

 

 

ING Enhanced Cash

Af

5,255,750

23,810

0.56

6.79 +

0.40

201,343

6.19

5.52

336,908

6.23

5.57

 

 

 

 

 

 

 

 

 

 

 

 

 

Macquarie Income Plus

Af

7,489,539

40,982

0.55

7.41

0.40

274,854

6.51

5.52

377,096

6.50

5.57

 

 

 

 

 

Index %

 

 

 

 

 

 

 

 

 

49,440,516

237,393

 

5.32

 

1,917,964

 

 

2,779,287

 

 

           


        Credit Ratings                                                           Standard & Poors

 

Extremely strong capacity to pay                                                    AAA

Very strong capacity to pay                                                             AA

Funds exhibit strong protection against credit default                         Af

 

 

 

#UBSWA Bank Bill Index

 

-Is a performance benchmark published in the Australian Financial Review.

 

-The index rate can be compared to the interest rate earned by Council on its

investments.

 

 

 

Interest Earned

                                                                                                                                   

                                                                                                          $

 

In February 2005                                                                            237,790

                                                                                                 

For 2004/2005 to 28 February –                                                    1,924,924                                                                                                 

 

 

Original estimate budget for interest earned – 2004/2005               2,825,000

 

 

 

 

 

*

 

**

Monthly earning rates for the last three months

 

 

LG Financial Services 11am Call                          

LGFS Expanded Credit Facility

Commonwealth Shield Series 12

Commonwealth Shield Series 21

Commonwealth Shield Series 24

UBS Credit Cash Enhanced

Deutsche Cash Plus

Macquarie Diversified Treasury

Macquarie Income Plus

 

UBSWA Bank Bill Index

 

Dec

%

 

0.42

0.53

0.53

0.87

0.57

0.51

0.51

0.51

0.51

 

0.46

Jan

%

 

0.42

0.43

0.53

0.31

0.57

0.43

0.55

0.47

0.49

 

0.46

Feb

%

 

0.42

0.52

0.53

1.11

0.57

0.54

0.60

0.56

0.55

 

0.40

*            Includes bank account interest as well as interest on investments with Managed Funds.

**          Includes bank account interest and those Managed Funds no longer used.

                        ***      The interest return on this investment has been estimated. Interest rates and amounts invested vary on a daily basis.

                        +          Interest return on investment are rates on investment switched at the end of the period.

 

I certify that the above investments have made in accordance with the Local Government Act, the regulations

and Council’s investment policy No. 3.02.07.

 

                        ________________________

BRIAN GREGAN

MANAGER, FINANCIAL SERVICES DIVISION