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

 

3rd October, 2006

 

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, 10TH OCTOBER, 2006 AT 6:00 P.M.

 

Committee Members:                  His Worship the Mayor, Cr P. Tracey, Andrews (Chairperson), Hughes, Kenny, Matson, Nash (Deputy Chairperson), Seng & Woodsmith.

 

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/Granting of leave of absences

 

2           Confirmation of the Minutes

 

CONFIRMATION OF THE MINUTES OF THE ADMINISTRATION & FINANCE COMMITTEE MEETING HELD ON TUESDAY, 12TH SEPTEMBER, 2006.

 

3           Declaration of Pecuniary & Non-Pecuniary Interests

 

4           Addressing of Committee by Members of the Public

 

5           Urgent Business

 

6           Finance

 

6.1                      

DIRECTOR, GOVERNANCE & FINANCIAL SERVICES' REPORT 64/2006 - INVESTMENT REPORT - AUGUST 2006.

2

 

6.2                      

DIRECTOR, GOVERNANCE & FINANCIAL SERVICES' REPORT 65/2006 - MONTHLY FINANCIAL REPORTS AS AT 31 AUGUST 2006.

7

 


 

6.3                      

DIRECTOR, GOVERNANCE & FINANCIAL SERVICES' REPORT 66/2006 - 2006/07 CONTINGENCY FUND - STATUS AS AT 27 SEPTEMBER 2006.

9

 

 

7           Confidential Items (Closed Session)

 

8           Notices of Rescission Motions

…………………………

GENERAL MANAGER


 

Director, Governance & Financial Services' Report 64/2006

 

 

SUBJECT:

INVESTMENT REPORT - AUGUST 2006

 

 

DATE:

22 September, 2006

FILE NO:

F2004/06527

 

 

 

REPORT BY:            DIRECTOR, GOVERNANCE & FINANCIAL SERVICES  

 

 

INTRODUCTION:

 

The Local Government (General) Regulation requires that the responsible accounting officer provide a written report to the 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.

 

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 23 September, 2005. The Local Government (General) Regulation prescribes the records that must be maintained in relation to Council’s investments.

 

The attached table titled “Investment Performance Report – August 2006” outlines the investment portfolio held by Council as at the end of August 2006. All investments have been made in accordance with the Act, Regulations and Council's Investment Policy.

 

Investment Commentary

 

The size of the investment portfolio may vary significantly from month to month as a result of cash flows for the period. Cash outflows (expenditure) are typically relatively stable from one month to another. Cash inflows (income) are cyclical and are largely dependent on the rates instalment due dates and the timing of grant payments including receipt of the Financial Assistance Grant.

 

The investment portfolio increased by $9.118 million during August 2006. The increase is representative of the positive cash flow for the month as revenue exceeded expenditure. The increase was mainly due to receipts from the first instalment of the 2006/2007 rates and charges which were due on 31 August 2006.

 

 

 

 

The above graph illustrates the movement in the investment portfolio since August 2004. The peaks are representative of the rates instalment periods.

 

The investment portfolio is diversified across a number of investment types and is spread across a number of financial institutions. The various investment types may include managed funds, term deposits, rolling rate investments, floating rate notes and on‑call accounts. The following graph indicates the various investments held during August 2006.

 

 

The investment portfolio is regularly reviewed in order to maximise investment performance and minimise risk. Comparisons are made between existing investments with available products that are not part of Council's portfolio. Independent advice is sought on new investment opportunities.

 

 

 

Investment performance exceeded the industry benchmark UBS Australia Bank Bill Index in August 2006 with an average return after fees of 6.50%, compared with the benchmark index of 6.33%.

 

Official Reserve Bank of Australia (RBA) cash interest rate increased to 6.00%.

 

RELATIONSHIP TO CITY PLAN:

 

The relationship with the City Plan is as follows:

 

Outcome 1:  Leadership in Sustainability.

Direction 1c:  Long term financial viability is achieved.

Key Action:  Investment Policy and Procedures.

 

FINANCIAL IMPACT STATEMENT:

 

Funds are invested with the aim of achieving budgeted income in 2006/2007 and outperforming the USB Australian Bank Bill Index over a 12 month period. The budget provision for income from this source is $2.702 million. Income to 31 August 2006 amounted to $438,825.

 

CONCLUSION:

 

All investments as at 31 August 2006 have been made in accordance with Policy No: 3.02.07 and the provisions of s625 of the Local Government Act and the Local Government (General) Regulation have been complied with.

 

RECOMMENDATION:

 

That the report be received and noted.

 

ATTACHMENT/S:

 

Investment Performance Report – August 2006

 

 

 

 

 

 

………………………………

………………………………..………………………………

GEOFF BANTING

GREG BYRNE

DIRECTOR, GOVERNANCE & FINANCIAL SERVICES

MANAGER FINANCIAL OPERATIONS

 

 

 


 


Investment Performance Report - August 2006

Investment

Credit Rating

Amount Invested

Interest Earned

Investment Performance

Period

FYTD

Period

FYTD

Past 12 Months

 

$

$

$

%

%

%

CBA Cash Deposit (CDA)

AA

4,182,216

28,241

44,058

5.95

5.82

5.56

LGFS Expanded Credit Facility

Af

4,673,308

23,864

46,309

6.21

6.04

5.99

Macquarie Income Plus Enhanced Income Fund

Af

4,673,720

24,661

46,588

6.43

6.18

6.09

Deutsche Income Enhanced Income Fund

Af

6,303,303

21,205

51,589

6.19

6.58

6.28

ING Enhanced Cash Fund

Af

6,370,060

34,856

66,687

6.67

6.40

6.19

Merrill Lynch Diversified Credit Fund

Af

7,134,987

37,540

74,634

6.41

6.58

6.42

ANZ Bank - Three Pillars

AA-

2,000,000

12,199

24,282

7.18

7.15

6.88

3 month BBSW + 1.20%

QIC Cash Enhanced

AA

1,000,000

Investment made on 31 August 2006

CBA Bank Bills

*

2,000,000

Purchased 18 August 2006. Maturing 15 September 2006 being 28 Days @ 6.11% pa.

IMB Term Deposit

*

2,000,000

Purchased 31 August 2006. Maturing 30 October 2006 being 60 Days @ 6.24% pa.

LGFS Term Deposit

*

2,000,000

Purchased 31 August 2006. Maturing 2 October 2006 being 30 Days @ 6.25% pa.

Commonwealth Bank Shield Series 12

AA

4,023,240

23,458

46,916

6.09

6.09

6.54

3 month BBSW + 1.00%

Commonwealth Bank Shield Series 21

AA

1,133,530

Purchased in April 2004. Capital is guaranteed and interest is paid at maturity. Investment value as at 31 August 2006 is $1,130,380 which equates to return since inception of 5.39%

Commonwealth Bank Shield Series 24

A-

2,518,475

15,723

31,446

7.40

7.41

7.18

Negative watch

3 month BBSW + 1.50%

Interest earned from matured investments

-

-

3,480

3,480

-

-

-

General Fund Bank Account

-

-

1,945

2,837

-

-

-

Total

 

50,012,839

227,172

438,826

6.50

6.47

6.35

Official (Reserve Bank of Australia) Cash Rate

6.00

5.87

5.61

UBS Australian Bank Bill Index

6.33

6.08

5.81

G:\ACCTS\Financial Operations\Investments\Investment Performance Report\TABLES

 

* Bank Bills and Term Deposits are not credit rated.


 

Director, Governance & Financial Services' Report 65/2006

 

 

SUBJECT:

MONTHLY FINANCIAL REPORTS AS AT 31 AUGUST 2006

 

 

DATE:

21 September, 2006

FILE NO:

F2004/06527

 

 

 

REPORT BY:            DIRECTOR, GOVERNANCE & FINANCIAL SERVICES     

 

 

INTRODUCTION:

 

Section 202 of the Local Government (General) Regulation 2005 requires that the responsible accounting officer of a Council must:

(a)  establish and maintain a system of budgetary control that will enable the Council’s actual income and expenditure to be monitored each month and to be compared with the estimate of the Council’s income and expenditure, and

(b)  if any instance arises where the actual income or expenditure of the Council is materially different from its estimated income or expenditure, report the instance to the next meeting of the Council.

 

ISSUES:

 

This report provides the financial results of Council as at 31 August 2006. Attachment 1 summarises Council’s Financial Performance, and its Source and Application of Funds. It also summarises the operating result for each of Council’s principal activities. Attachment 2 details the financial position of Council as at 31 August 2006.

 

RELATIONSHIP TO CITY PLAN:

 

The relationship with the City Plan is as follows:

 

Outcome 1:      Leadership in Sustainability

Direction 1c:     Long term financial viability is achieved

 

FINANCIAL IMPACT STATEMENT:

 

There is no direct financial impact for this matter.

 

CONCLUSION:

 

Council’s Director Governance & Financial Services as the responsible accounting officer, advises that the projected financial position is satisfactory.

 

RECOMMENDATION:

 

That the monthly financial reports as at 31 August 2006 be noted.

 

ATTACHMENT/S:

 

1.  Income Statement & Source and Application of Funds

2.  Balance Sheet

ALL UNDER SEPARATE COVER    

 

 

………………………………

………………………………

GEOFF BANTING

 

DIRECTOR, GOVERNANCE & FINANCIAL SERVICES

 

 

 

 

 

 

 


 

Director, Governance & Financial Services' Report 66/2006

 

 

SUBJECT:

2006/07 CONTINGENCY FUND - STATUS AS AT 27 SEPTEMBER 2006

 

 

DATE:

26 September, 2006

FILE NO:

F2004/07369 xr F2005/00182

 

 

 

REPORT BY:            DIRECTOR, GOVERNANCE & FINANCIAL SERVICES  

 

 

INTRODUCTION:

 

The purpose of this report is to detail the progressive amount of donations, allocations, waiving of fees and other similar contributions for the 2006/07 financial year.

 

ISSUES:

In the 2006/07 financial year there have been twenty-one (20) allocations totalling $67,470.00 as listed in the table below.

 

MEETING

DETAILS

NET COST TO COUNCIL

Ordinary Council – 27 June 2006

Annual contribution – Waiving of Greenwaste Disposal Fees or the Guriwal Aboriginal Community at La Perouse

$6,500.00

 

Ordinary Council – 27 June 2006

Waiving of fees for Carols by the Sea – St Paul’s Anglican Church Coogee

$938.65

 

Ordinary Council – 27 June 2006

Waiving of fees for the installation of a banner - Our Lady of the Sacred Heart Primary School, Randwick

$1,080.00

 

Ordinary Council – 27 June 2006

Structural maintenance works associated with the lease of 30-32 Waratah Street, Randwick – Randwick Open Care for Kids (ROCK)

$5,000.00

Ordinary Council – 27 June 2006

Annual contribution - Waiving of fees for Special Rubbish Pick Up Service – Ronald McDonald House

$300.00

Ordinary Council – 27 June 2006

Financial assistance for 2006 Rock Eisteddfod – Randwick Girls & Boys High Schools

$5,000.00

Ordinary Council – 27 June 2006

Financial assistance for Sports Coast Flags – Randwick City Tourism

$1,740.00

Ordinary Council – 25 July 2006

Financial assistance – installation & dismantling of Learning Links banner

$645.30

Ordinary Council – 25 July 2006

Annual contribution (3 years from 2006/07) - SSROC East Timor Partnership 

$4,000.00

Ordinary Council – 22 August 2006

Use of Des Renford Aquatic Centre  - Des Renford Chair of Heart Research Swim Challenge and Charity Day 

$5,700.00

Ordinary Council – 22 August 2006

Waiving of fees for Fun Run/Oktoberfest/Market Day - Maroubra Chamber of Commerce  

$4,741.75

Ordinary Council – 22 August 2006

Donation of Plants - Coogee Public School. 

$500.00

Ordinary Council – 22 August 2006

Contribution - two (2) joint display banners for use at business related functions - Eastern Suburbs Business Enterprise Centre & Randwick City Combined Chambers of Commerce 

$1,200.00

Ordinary Council – 22 August 2006

Sponsorship - Annual Sydney Body Art Ride (SBAR) Fundraising Event. 

$3,000.00

Ordinary Council – 26 Sept 2006

Waiving of fees for Coogee Family Fun Day - Goldstein Reserve

$9,119.25

Ordinary Council – 26 Sept 2006

Waiving of fees for St Marks Anglican Church, Malabar – Carols by Candlelight

$6,833.30

Ordinary Council – 26 Sept 2006

Waiving of fees for use of Kokoda Park, Kensington for Carols by Candlelight

$2,959.45

Ordinary Council – 26 Sept 2006

Waiving of fees for Surf Life Saving NSW – Carnival at Maroubra Beach

$2,929.00

Ordinary Council – 26 Sept 2006

Annual contribution  (7 years from 2006/07)

Interest foregone on interest free loan - Coogee Surf Life Saving Club renovations

$4,500.00

Ordinary Council – 26 Sept 2006

Waiving of fees for East Coast  Ocean Challenge

$783.30

TOTAL:

 

$67,470.00

 

The amounts shown in the table above reflect the net cost to Council in providing the donation, grant or assistance.  The GST, where applicable, has not been shown because it will be claimed back from the Australian Taxation Office.

 

The budget for Council contingencies will be increased in the September review by an amount equivalent to the total voted at the June 2006 Ordinary Council meeting as they do not relate to this financial year.

 

RELATIONSHIP TO CITY PLAN:

 

The relationship with the City Plan is as follows:

 

Outcome 2:     A vibrant and diverse community

Our community will be proud to be part of our City and celebrate its range of cultures and people.

Direction 2b: Enrich our range of community services that meet our community’s needs.

Key Action:    - Support the provision of services and facilities to meet the needs of our Target Groups.

- Celebrate the range of cultures and people within Randwick City.

 

FINANCIAL IMPACT STATEMENT:

 

Council has allocated $120,000.00 in the 2006/07 budget for contingencies. 

 

RECOMMENDATION:

 

That the report be received and noted.

 

ATTACHMENT/S:

 

Nil

 

 

 

 

………………………………

………………………………

GEOFF BANTING

JULIE HARTSHORN

DIRECTOR, GOVERNANCE & FINANCIAL SERVICES

SENIOR ADMINISTRATIVE CO-ORDINATOR