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

 

 

27th November, 2007

 

 

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,

4TH DECEMBER, 2007 AT 6:00 P.M.

 

Committee Members:             The Mayor, Cr B. Notley-Smith, 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, 13TH NOVEMBER, 2007.

 

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 79/2007 -  INVESTMENT REPORT - OCTOBER 2007.

2

6.2                      

DIRECTOR, GOVERNANCE & FINANCIAL SERVICES' REPORT 80/2007 - MONTHLY FINANCIAL REPORT AS AT 31 OCTOBER 2007.

7

6.3                      

DIRECTOR, GOVERNANCE & FINANCIAL SERVICES' REPORT 81/2007 -   2007/08 CONTINGENCY FUND - STATUS AS AT 26 NOVEMBER 2007.

9

 

7           Confidential Items (Closed Session)

 

8           Notices of Rescission Motions

 

 

……………………………….

GENERAL MANAGER

 


 

Director, Governance & Financial Services' Report 79/2007

 

 

SUBJECT:

INVESTMENT REPORT - OCTOBER 2007

 

 

DATE:

21 November 2007

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 – October 2007” outlines the investment portfolio held by Council as at the end of October 2007. 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 balance of the investment portfolio as at 31 October 2007 was $38.78 million. During October 2007 the portfolio decreased by $6.90 million.

 

During October there were three payroll periods during the month and payroll related expenditure during October 2007 amounted to $3.52 million. Other operating expenses for the month amounted to $6.99 million which included capital works expenditure of $2.90 million.

 

 

 

 

The main source of revenue during the month was from rate collections which amounted to $2.10 million. The second instalment is due 30 November 2007. Other major revenue during October 2007 was from Office of State Revenue fine income $300,509, GST refund of $511,438 from the ATO, various RTA grants totalling $163,272 and grants from Department of Community Services $64,000.

 

 

The above graph illustrates the movement in the investment portfolio since October 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 October 2007.

 

 

 

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.

 

The graph below shows the investment return achieved against the USB Bank Bill Index and the official Reserve Bank of Australia (RBA) cash interest rate for the period October 2005 to October 2007.

 

 

Investment performance was lower than the industry benchmark UBS Australian Bank Bill Index in October 2007 with an average return after fees of 6.72%, compared with the benchmark index of 7.19%. Official Reserve Bank of Australia (RBA) cash interest rate remained 6.50% during October 2007.

 

Month in Review

 

The Reserve bank kept the cash rate unchanged at 6.50% at its October meeting – waiting until the release of the second quarter CPI data. However at the time of preparing this report it is known that the cash rate increased to 6.75% on 7 November 2007 in response to stronger than expected building approvals data combined with an increase in lending to consumers and businesses. Some economists believe that the RBA will raise rates two times by June next year.

 

It has almost been four months since the bad news stemming from the US sub-prime crises and local financial markets continue to show some signs of stability and recovery even though volatility is expected to persist over the near term.

 

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 2007/2008 and outperforming the UBS Australian Bank Bill Index over a 12 month period. The revised budget provision for income from this source is $2,845,000. Income to 31 October 2007 amounted to $588,509. (The revised budget amount is as per September quarterly review).

 

Changes to the economic climate are being closely monitored and adjustments to the investment strategy will continue to be made as required. Any further changes to budgeted income from investment earnings will be reported in subsequent quarterly reviews.

 

CONCLUSION:

 

All investments as at 31 October 2007 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 investment report for October 2007 be received and noted.

 

ATTACHMENT/S:

 

Investment Performance Report – October 2007.

 

 

 

………………………………………

……..………………………………..………………………………

GEOFF BANTING

GREG BYRNE

DIRECTOR, GOVERNANCE & FINANCIAL SERVICES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MANAGER FINANCIAL OPERATIONS

 

 

 


 

Investment Performance Report - October 2007

Investment

Credit Rating

Amount Invested

Interest Earned

Investment Performance

Period

FYTD

Period

FYTD

Past 12 Months

 

$

$

$

%

%

%

CBA Cash Deposit (CDA)

AA

4,728,064

28,668

104,035

6.45

6.39

6.26

Local Govt Financial Services (LGFS) 11am call

AA

89,371

16

16

6.40

6.34

6.21

Local Govt Financial Services (LGFS) Fixed Out-Performance Cash Fund

AA-f 

6,932,316

32,316

32,316

7.38

7.38

7.38

Macquarie Income Plus Enhanced Income Fund

A

6,513,300

24,995

85,658

4.68

4.44

5.92

Aberdeen Income Fund

A

3,390,880

13,976

56,345

5.16

4.49

6.04

ING Enhanced Cash Fund

Af

3,755,645

12,728

53,734

4.39

4.54

6.05

Blackrock Invest. MGT (Aust) Ltd

A

7,593,220

60,696

26,917

9.94

1.19

5.31

ANZ Bank - Three Pillars

AA-

2,000,060

13,106

51,616

7.70

7.60

7.66

Commonwealth Bank Shield Series 21

AA

1,239,240

-

-

Purchased in April 2004. Capital is guaranteed and interest is paid at maturity. Investment estimated value as at 31 October 2007 is $1,229,380 which equates to return since inception of 5.93%

Commonwealth Bank Shield Series 24

         AA

2,546,250

17,885

67,810

8.42

8.12

7.96

 

3 month BBSW + 1.50%

Interest earned from matured investments

-

-

83,619

101,457

-

-

-

General Fund Bank Account

-

-

1,817

8,605

-

-

-

Total

 

38,788,347

289,822

588,509

6.72

5.61

6.53

Official (Reserve Bank of Australia) Cash Rate

6.50

6.44

6.31

UBS Australian Bank Bill Index

6.96

6.73

6.61

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

Credit Rating: * Bank Bills and Term Deposits are not credit rated. The 'f' subscript to the credit rating signifies that it is a Standard & Poor’s fund rating and that assets are valued at their market value.

Report Author: Aldo Meoli, Financial Accountant - Financial Operations

 


 

Director, Governance & Financial Services' Report 80/2007

 

 

SUBJECT:

MONTHLY FINANCIAL REPORT AS AT 31 OCTOBER 2007

 

 

DATE:

19 November, 2007

FILE NO:

F2006/00690

 

 

 

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 October 2007. 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 October 2007.

 

RELATIONSHIP TO CITY PLAN:

 

The relationship with the City Plan is as follows:

 

Outcome1:     Leadership in Sustainability.

Direction 1c: Long term financial viability is achieved.

 

FINANCIAL IMPACT STATEMENT:

 

There is no direct financial impact for this matter.

 

CONCLUSION:

 

There is no direct financial impact for this matter.

 

RECOMMENDATION:

 

The monthly financial reports as at 31 October 2007 be noted.

 

 

ATTACHMENT/S:

 

1. Income Statement & Source and Application of Funds

2. Balance Sheet - BOTH UNDER SEPARATE COVER.   

 

 

 

 

………………………………

………………………………

GEOFF BANTING

 

DIRECTOR, GOVERNANCE & FINANCIAL SERVICES

 

 

 

 

 

 

 


 

Director, Governance & Financial Services' Report 81/2007

 

 

SUBJECT:

2007/08 CONTINGENCY FUND - STATUS AS AT 26 NOVEMBER 2007

 

 

DATE:

22 November, 2007

FILE NO:

F2004/07396

 

 

 

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 2007/08 financial year.

 

ISSUES:

 

In the 2007/08 financial year there have been 33 allocations totalling $108,797.25 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

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

$650.00

Ordinary Council – 25 July 2006

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

$4,000.00

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 June 2007

Coogee Surf Life Saving Club – Centenary Dinner

$1,200.00

Ordinary Council - 26 June 2007

Financial assistance for 2007 Rock Eisteddfod – Randwick Girls & Boys High Schools

$5,000.00

Ordinary Council - 26 June 2007

Waiving of fees - installation of banner – Eastern Suburbs Teachers Association

$1,132.00

Ordinary Council - 26 June 2007

Waiving of fees - World Youth Day - “Journey of the World Youth Day Cross and Icon” event

$1,371.29

Ordinary Council - 26 June 2007

Sponsorship - S.O.S Preschool

$1,400.00

Ordinary Council – 24 July 2007

Waiving of fees - St Pauls Anglican Church Coogee - Carols by the Sea

$1,095.00

Ordinary Council – 24 July 2007

8th Annual Des Renford Chair of Heart Research Family Gala and Charity Day – use of Des Renford Aquatic Centre

$6,500.00

Ordinary Council – 24 July 2007

Waiving of fees – use of Town Hall for Cana Ball

$1,548.00

Ordinary Council – 24 July 2007

Our Lady of the Rosary College - centenary celebrations

$200.00

Ordinary Council – 28 August 2007

Waiving of fees - usage of Yarra Bay for the Emerging Athlete Program for Junior Lifesavers

$485.90

Ordinary Council – 28 August 2007

Contribution - Maroubra Fun Run, Oktoberfest and Market Day

$4,538.00

Ordinary Council – 28 August 2007

Waiving of fees - Development Application lodgement - South Coogee Primary School

$1,941.00

Ordinary Council – 28 August 2007

Contribution - Gallery East “Hula Dreams” ukuleles exhibition and performance

$2,000.00

Ordinary Council – 28 August 2007

Waiving of fees – Use of Maroubra Beach for Rugby League Tag

$626.90

Ordinary Council – 25 September 2007

Waiving of Fees - St Marks Anglican Church, Malabar - Carols By Candlelight

$10,513.83

Extraord Council –

18 Sept 2007

Banners to congratulate Randwick Girls and Boys High Schools’ Rock Eisteddfod Team on winning the 2007 Rock Eisteddfod

$2,420.00

Extraord Council –

18 Sept 2007

Donation - Commemorative tree planting in Centennial Park

$5,000.00

Extraord Council – 18 September 2007

Waiving of fees - South Maroubra Village Green Art Show

$235.00

Extraord Council – 18 September 2007

Waiving of fees - Use of Kokoda Park, Kensington for Carols by Candlelight

$5,360.83

Ordinary Council – 25 September 2007

Rosella Aboriginal Women's Vigoro Sporting Club – 75 year celebrations

$2,000.00

Ordinary Council – 30 October 2007

Carols by Candlelight – Matraville

$8,000.00

Ordinary Council – 30 October 2007

Financial contribution & waiving of fees - Coogee Family Fun Day – Goldstein Reserve

$16,655.30

Ordinary Council – 30 October 2007

Waiving of fees – Randwick Shield at Coogee Beach

$1,297.10

Ordinary Council – 30 October 2007

Waiving of fees – Express Glass Island Challenge – Coogee Beach

$1,832.10

Ordinary Council – 30 October 2007

Financial assistance – Australia Day Botany Bay Regatta

$500.00

Ordinary Council – 30 October 2007

Sponsorship – Our Lady of the Sacred Heart Church – World Youth Day Launch

$500.00

Ordinary Council – 30 October 2007

Financial contribution – Australia East Timor Association – Weavers’ Tour

$400.00

Ordinary Council – 30 October 2007

Waiving of fees – South Sydney Football Club – Membership promotion

$1,375.00

Ordinary Council – 30 October 2007

East Timor Scholarships (x2)

$10,000.00

TOTAL:

 

$108,797.25

 

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.

 

It should be noted that this report does not include any contingency funds allocated at the 27 November 2007 Council Meeting.

 

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 in the 2007/08 budget for contingencies. 

 

RECOMMENDATION:

 

That the report be received and noted.

 

ATTACHMENT/S:

 

Nil

 

 

………………………………

………………………………

GEOFF BANTING

JULIE HARTSHORN

DIRECTOR, GOVERNANCE & FINANCIAL SERVICES

SENIOR ADMINISTRATIVE COORDINATOR