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Administration and Finance Committee Meeting

 

  BUSINESS PAPER

 

 

 

Tuesday 10 May 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

Administrative Centre 30 Frances Street Randwick 2031

Telephone: 1300 722 542

Fax: 02 9319 1510

 council@randwick.nsw.gov.au

www.randwick.nsw.gov.au


 

 

 

 

 

 

 

 

 

 

 

 


Administration and Finance Committee                                                                            10 May 2016

 

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Administration and Finance Committee Meeting

 

Notice is hereby given that a Administration and Finance Committee Meeting of the Council of the City of Randwick will be held in the Council Chamber, First Floor, 90 Avoca Street Randwick on Tuesday, 10 May 2016 at 6:00 p.m.

 

Committee Members:         The Mayor N D’Souza, Andrews, Belleli, Bowen (Deputy Chairperson), Garcia, Matson, Moore, Nash, Neilson (Chairperson), Roberts, Seng, Shurey, Smith, Stavrinos and Stevenson

 

Quorum:                           Eight (8) members

 

NOTE:   At the Extraordinary Meeting held on 28 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.

Apologies/Granting of Leave of Absences 

Confirmation of the Minutes  

Administration and Finance Committee Meeting - 12 April 2016

Declarations of Pecuniary and Non-Pecuniary Interests

Address of Committee by Members of the Public

Privacy warning;

In respect to Privacy & Personal Information Protection Act, members of the public are advised that the proceedings of this meeting will be recorded for the purposes of clause 69 of Council’s Code of Meeting Practice.

Urgent Business

Administration Report

A4/16       Contingency Fund - status as at 30 April 2016....................... 1

Finance Reports

F5/16       Monthly Financial Report as at 31 March 2016........................ 5

F6/16       2015 Land Values.............................................................. 15   

Closed Session (record of voting not required)

F7/16       Transfer of land in lieu of rates

This matter is considered to be confidential under Section 10A(2) (a) Of the Local Government Act, as it deals with personnel matters concerning particular individuals.

  

 

Notice of Rescission Motions

Nil  

 

 

 

…………………………………………………….

Ray Brownlee

General Manager


Administration and Finance Committee                                                                            10 May 2016

 

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Administration Report No. A4/16

 

Subject:                  Contingency Fund - status as at 30 April 2016

Folder No:               F2004/07396

Author:                    Julie Hartshorn, Senior Administrative Coordinator      

 

Introduction

 

The purpose of this report is to detail the progressive amount of donations, allocations, waiving of fees and other similar contributions for the 2015-16 and 2016-17 financial years.

 

Issues

 

For the 2015-16 financial year there have been 31 allocations totalling $168,831.50 and for the 2016-17 financial year there have been 3 allocations totalling $11,000.00,   as listed in the table below.

 

Meeting

Details

Approved allocation

Annual contributions (ongoing)

Ord Council – 22 Feb 2011

Annual contribution (5 years from 2011-12 to 2015-16) - Randwick Girls High School - 'Mayor's Award'

$1,000.00

Planning Committee – 13 Mar 2012

Annual contribution – Australia Day Botany Bay Regatta

$750.00

Ord Council – 25 June 2013

Annual contribution Sponsorship of the Westpac Rescue Helicopter Lifesaver Service – 3 year agreement 2013-14 to 2015-16

 

$15,000.00

Ord Council

17 Sept 2013

Annual Contribution (5 years from 2015-16 to 2019-20) Waiving of Fees – Rainbow Club Australia Inc – Murray Rose’s Malabar Magic Ocean Swim

 

$14,500.00

Ord Council  23 Sept 2014

Annual contribution (5 years from 2015-16 to 2019-20) - Randwick Boys High School - 'Mayor's Award'

$1,000.00

Ord Council – 26 April 2016

Annual contribution (5 year from 2015-16 - Sydney Children’s Foundation Gold Telethon)

$5,000.00

2015-16 Contingency Fund allocations

Ord Council – 23 Sept 2014

POW Hospital's request for financial support to use Prince Henry Centre – to celebrate 50th year since the first kidney transplant in NSW

$3,600.00

Ord Council – 28 Apr 2015

Waiving of fees - South Maroubra Surf Club use of DRLC for the Annual Nippers Proficiency Test

$1,210.00

Ord Council – 23 June 2015

Waiving of fees - Saint George Coptic Orthodox Church Annual Community Fete

$1,545.00

Ord Council – 23 June 2015

Waiving of fees - Des Renford Leisure Centre for Maroubra Swim Club Carnivals

$4,100.00

Ord Council – 23 June 2015

Sponsorship - Eastern Beaches Masquerade Ball (supporting the Eastern Beaches LAC)

$6,500.00

Ord Council – 23 June 2015

Waiving of Fees - Indonesian Presbyterian Church Community BBQ

$165.00

Ord Council – 28 July 2015

New Mayor's Award for Outstanding Contribution to the Randwick Business Community

$2,000.00

Ord Council – 25 Aug 2015

Waiving of fees and financial contribution - NSW Police Force International Student Beach Soccer Day

$4,533.00

Ord Council – 25 Aug 2015

Waiving of fees - Handball Australia

$3,685.00

Ord Council – 25 Aug 2015

Waiving of Fees - Our Lady of the Rosary School, Kensington Christmas Fair

$7,000.00

Ord Council – 25 Aug 2015

Waiving of fees - Salvation Army Community Christmas Lunch

$2,220.00

Ord Council – 25 Aug 2015

15th Annual Des Renford Chair of Hearts Research Family Gala and Charity Day

$8,500.00

Ord Council – 25 Aug 2015

Waiving of fees - South Coogee Public School Biennial Fiesta

$7,000.00

Ord Council – 25 Aug 2015

Waiving of fees and financial contribution – Surfing NSW

$23,533.00

Ord Council – 22 Sept 2015

Donation - ‘A National Act of Recognition’ Fund

$2,500.00

Ord Council – 27 Oct 2015

Waiving of fees - Greek Epiphany Festival 2016

$10,212.00

Ord Council – 27 Oct 2015

Waiving of fees - St Nicolas' Anglican Church “Carols by the Sea”

$1,732.00

Ord Council – 27 Oct 2015

Waiving of fees - Closure of Edgar St, Maroubra between Henning Ave and Cooper St Maroubra

$3,000.00

A&F Comm -  10 Nov 2015

Waiving of fees – 2015 Taste of Coogee event

$14,795.50

Ord Council – 24 Nov 2015

Waiving of fees - Maroubra Diggers Junior Swimming Club – for carnivals at Des Renford Leisure Centre

$2,040.00

Ord Council – 24 Nov 2015

Waiving of fees - Rainbow Club Australia - lane hire at Des Renford Leisure Centre

$9,600.00

Ord Council – 23 Feb 2016

Waiving of fees – Surfing NSW – events at Maroubra Beach

$7,341.00

Ord Council – 23 Feb 2016

Donation to Can Too Foundation (to acknowledge World Marathon Challenge - Heather Hawkins)

$500.00

Ord Council – 23 Feb 2016

Waiving of fees - Des Renford Leisure Centre to assist in raising funds for the Maroubra Swim Club

$4,100.00

Ord Council – 22 Mar 2016

Waiving of fees – Fundraising walk - Children’s Tumour Foundation

$170.00

Total - 2015-16 Contingency Fund allocations

$168,831.50

Annual contribution (ongoing)

Ord Council – 26 April 2016

Annual contribution (5 year from 2016-17 - Sydney Children’s Foundation Lights for Kids Christmas campaign)

$2,000.00

2016-17 Contingency Fund allocations

Ord Council – 22 Mar 2016

Financial assistance - Prince of Wales Hospital Foundation

$5,000.00

Ord Council – 22 Mar 2016

Sponsorship – Randwick Girls and Boys High Schools – 2016 Show

$4,000.00

Total – 2016-17 Contingency Fund allocations

$11,000.00

 

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 Actions:       Support the provision of services and facilities to meet the needs of our Target Groups and celebrate the range of cultures and people within Randwick City.

 

Financial impact statement

 

Council has allocated $151,721.00 in the 2015-16 Budget for contingencies (including the March quarterly review adjustment). 

 

Recommendation

 

That the status of the contingency fund allocations for 2015-16 and 2016-17, be noted.

 

Attachment/s:

 

Nil

 

  


Administration and Finance Committee                                                                            10 May 2016

 

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Finance Report No. F5/16

 

 

Subject:                  Monthly Financial Report as at 31 March 2016

Folder No:               F2015/00181

Author:                    Oliver Guo, Management Accountant      

 

Introduction

 

Section 202 of 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 the Council as at 31 March 2016. Attachment 1 summarises the Council’s financial performance and its source and application of funds. It also summarises the operating result for each of the Council’s principal activities. Attachment 2 details the financial position of the Council as at 31 March 2016. Attachment 3 details the cash flow of the Council as at 31 March 2016.

 

This report was prepared prior to the adoption of the March 2016 Quarterly Budget Review. As a result the current budget in this report does not include any of those budget variations. 

 

Relationship to City Plan

 

The relationship with the City Plan is as follows:

 

Outcome 1:     Leadership in Sustainability.

Direction 1b:   Council is a leader in the delivery of social, financial and operational activities.

 

Financial impact statement

 

There is no direct financial impact for this matter.

 

Conclusion

 

The Council’s Manager Corporate and Financial Planning, as the Responsible Accounting Officer, advises that the projected financial position is satisfactory. The Current Ratio as at 31 March 2016 is 2.81 compared to 2.34 as at 30 June 2015. The Current Ratio is a financial indicator specific to local government and represents its ability to meet its debts and obligations as they fall due.

 

Recommendation

 

That the Administration and Finance Committee acknowledges that the Responsible Accounting Officer has advised that the projected financial position of Council is satisfactory.

 

Attachment/s:

 

1.View

Monthly Financial Statements - Income Statements March 2016

 

2.View

Monthly Financial Statements - Balance Sheet March 2016

 

3.View

Monthly Financial Statements - Cash Flow Statement March 2016

 

 

 

 


Monthly Financial Statements - Income Statements March 2016

Attachment 1

 

 

 

 

 

 


Monthly Financial Statements - Balance Sheet March 2016

Attachment 2

 

 


Monthly Financial Statements - Cash Flow Statement March 2016

Attachment 3

 

 


Administration and Finance Committee                                                                            10 May 2016

 

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Finance Report No. F6/16

 

Subject:                  2015 Land Values

Folder No:               F2004/07070

Author:                    Greg Byrne, Manager Financial Operations      

 

Introduction

 

In January 2016 the NSW Department of Lands – Office of the Valuer General (VG) issued new land values to land owners throughout the city of Randwick.  These values were determined as at 1 July 2015 and Council will use these new valuations for rating purposes for the 2016-17 rate levy.

 

This report provides information on the impact of this latest 2015 valuation. A councillor briefing on this subject took place 1 March 2016.

 

Issues

 

As Council’s rate revenue is capped by rate pegging and any approved special variation to rates income, a revaluation does not mean any additional rate income for Council.

 

A revaluation does not result in any extra income for the Council, but it does result in a redistribution of rates among ratepayers as there can be considerable variation in the valuation movements of individual properties.

 

The effects of the revaluation on an individual property, depends on how the valuation for that particular property increased or decreased relative to the average increase in land value overall.  The average land value increase for residential properties was 54% and the average increase in land value for business properties was 39%. The combined overall increase in land values was 52%.

 

 

The following graph depicts the number of properties within each range of valuation increases.

 

 

Total rates in 2016-17 will increase by 3.59% in line with the special variation approved by IPART in June 2014. Just over half of all residential properties in Randwick City Council are on the minimum rate. In accordance with the special variation approval, minimum rates will increase by 3.59% in 2016-17. 

 

Significant land value increases have occurred in some suburbs within Randwick City in the 2015 revaluation, especially Chifley and Matraville.   The primary driver being market forces during a Sydney real estate boom.

 

The following table shows the average increase in residential land value by suburb.

 

Clovelly

43%

South Coogee

44%

La Perouse

45%

Maroubra

49%

Coogee

53%

Kensington

54%

Randwick

55%

Little Bay

56%

Kingsford

57%

Malabar

57%

Phillip Bay

62%

Matraville

63%

Chifley

100%

Average

54%

 

 

The increase in residential land values per suburb will result in indicative average rate impacts as reflected in the following graph.

 

 

Ratepayers have the opportunity to object to their land value determination by contacting the Valuer General via Land & Property Information (LPI). Any successful objections will receive a corresponding rating adjustment based on the effective date applied to the amended valuation.

 

Relationship to City Plan

 

The relationship with the City Plan is as follows:

 

Outcome:          Leadership in Sustainability.

Direction:         Long term financial viability is achieved.

 

Financial impact statement

There is no direct financial impact for this matter.

 

Conclusion

 

The valuation of land occurs independently of councils.  Councils use these valuations in determining and levying rates in accordance with relevant legislation.  A revaluation does not equate to more income for the Council but new valuations will redistribute the amount of rates that an individual ratepayer may expect to pay from one rating year to the next when new valuations are in play.

 

Recommendation

 

That the introduction of the 2015 land values and the impact on rates be noted.

 

Attachment/s:

 

Nil