AGENDA AND BUSINESS PAPERS Oberon Council ......Finance Meeting 25 October 2016 Minutes of the...

137-139 Oberon Street PO Box 84 Oberon NSW 2787 Telephone: (02) 6329 8100 Fax: (02) 6329 8142 Email: [email protected] Email: [email protected]

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AGENDA AND BUSINESS PAPERS Oberon Council Finance Committee Meeting 11 November 2019 Commencing at 5.30pm at the Oberon Council Chambers

Oberon Council - Agenda and Business Papers – Finance Committee Meeting – 11 November 2019

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Agenda Items page

1. OPENING OF MEETING & WELCOME TO COUNTRY .......................................................... 4

2. RECORD OF ATTENDANCE .................................................................................................. 4

3. DECLARATIONS OF INTEREST ............................................................................................. 4

4. CONFIRMATION OF MINUTES .............................................................................................. 4

5. REPORTS ............................................................................................................................. 12

05.01 TOWN IMPROVEMENT LEVY ALLOCATION .......................................................... 12 05.02 QUARTERLY BUDGET REVIEW STATEMENT – JULY TO SEPT 2019 ...................... 13 05.03 STATEMENT OF INVESTMENTS ............................................................................ 23 05.04 LEGAL AND CONSULTANCY FEES ........................................................................ 28 05.05 OBERON YOUTH COUNCIL SPONSORSHIP ......................................................... 29

6. GENERAL BUSINESS ........................................................................................................... 30

7. CLOSURE OF MEETING ...................................................................................................... 30


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1. OPENING OF MEETING & WELCOME TO COUNTRY

The Mayor will welcome members and declare the meeting open. Council acknowledges that this meeting is being held on the traditional lands of the Wiradjuri and Gundungurra People, and respects the history and culture of the elders both past and present.

2. RECORD OF ATTENDANCE

Members Mayor Kathy Sajowitz (in the Chair) Deputy Mayor Mark Kellam Clr Ian Doney Clr Kerry Gibbons Clr Brenda Lyon Clr Clive McCarthy Clr Mick McKechnie Clr Andrew McKibbin

Staff Gary Wallace, General Manager

Shane Wilson, Planning and Development Director Lynette Safranek, Corporate Services Director Chris Schumacher, Technical Service Director

Sharon Swannell, Executive Coordinator Apologies Clr Don Capel

3. DECLARATIONS OF INTEREST

File No: Governance/Councillors/Declarations of Interest

Pecuniary -

Non-Pecuniary Significant

-

Non-Pecuniary Less than Significant

-

4. CONFIRMATION OF MINUTES

Finance Committee Meeting

Minutes of the Finance Committee Meeting held on 09 April 2019 FOLLOW. The minutes were accepted by Council at its Ordinary Meeting held on 16 April 2019, resolution number 03 160419. Matters Arising from the Minutes

Nil

137-139 Oberon Street PO Box 84 Oberon NSW 2787 Telephone: (02) 6329 8100 Fax: (02) 6329 8142 Email: [email protected] Email: [email protected]

Page 1 of the Minutes of the Finance Committee Meeting of Oberon Council held on Tuesday 09 April 2019. ___________________________ ____________________________ General Manager Mayor

CONFIMED MINUTES Oberon Council Finance Committee Meeting 09 April 2019 Commencing at 5.30pm at the Oberon Council Chambers

Oberon Council – Confirmed Minutes – Finance Committee Meeting – 09 April 2019


Agenda Items page

1. OPENING OF MEETING & WELCOME TO COUNTRY ................................................. 3

2. RECORD OF ATTENDANCE ......................................................................................... 3

3. DECLARATIONS OF INTEREST .................................................................................... 3

4. CONFIRMATION OF MINUTES ..................................................................................... 4

5. REPORTS ...................................................................................................................... 4

05.01 POLICY REVIEW – 2209 FINANCIAL ASSISTANCE......................................... 4 05.02 COMMUNITY TRANSPORT CARPORT ........................................................... 4 05.03 2019/20 OPERATIONAL PLAN ......................................................................... 5 05.04 INTERIM EXTERNAL AUDIT MANAGEMENT LETTER .................................... 5 05.05 CTA AUDIT COMMITTEE MEETING ................................................................ 6

6. CLOSED SESSION / CONFIDENTIAL REPORTS ......................................................... 6

06.01 SECTION 356 FINANCIAL ASSISTANCE APPLICATIONS ............................... 6

7. GENERAL BUSINESS .................................................................................................... 7

8. CLOSURE OF MEETING ............................................................................................... 7



1. OPENING OF MEETING & WELCOME TO COUNTRY

The Mayor welcomed members and declared the meeting open at 5.30pm. Council acknowledges that this meeting is being held on the traditional lands of the Wiradjuri and Gundungurra People, and respects the history and culture of the elders both past and present.

2. RECORD OF ATTENDANCE

Members Mayor Kathy Sajowitz (in the Chair) Deputy Mayor Kerry Gibbons Clr Ian Doney Clr Don Capel Clr Mark Kellam Clr Brenda Lyon Clr Clive McCarthy Clr Mick McKechnie Clr Andrew McKibbin (arrived 5.33pm)

Staff Gary Wallace, General Manager

Shane Wilson, Planning and Development Director Lynette Safranek, Finance and Community Services Director Chris Schumacher, Technical Service Director Tania Matthews, Records and Media Coordinator

Apologies Sharon Swannell, Executive Coordinator Moved: McCarthy Carried: Gibbons That the apology be received and accepted for the absence of Executive Coordinator Sharon Swannell. Carried 01 090419

3. DECLARATIONS OF INTEREST

File No: Governance/Councillors/Declarations of Interest

Pecuniary - Nil

Non-Pecuniary Significant

- Nil

Non-Pecuniary Less than Significant

- Nil



4. CONFIRMATION OF MINUTES

Finance Meeting 25 October 2016 Minutes of the Finance Meeting held on 25 October 2016 are provided. The minutes were accepted by Council at its Ordinary Meeting held on 15 November 2016 be confirmed, resolution number 08 15112016. Matters Arising from the Minutes Nil

5. REPORTS

05.01 POLICY REVIEW – 2209 FINANCIAL ASSISTANCE

File No: Governance/Policies Author: Lynette Safranek, Corporate Services Director

Summary This report provides a review of the current 2209 Financial Assistance Policy last reviewed and endorsed in May 2014. The updates bring the policy in line with current procedures.

Moved: Capel Second: McKechnie That Council adopt Policy 2209 Financial Assistance policy in accordance with this report with the noted amendments.

Carried 02 090419

05.02 COMMUNITY TRANSPORT CARPORT

File No: Governance/Meetings/Finance Committee Author: Lynette Safranek, Corporate Services Director

Summary Council has received a request from LiveBetter Oberon Community Transport to allow them to build a carport to house the mini bus, at the current site used to house their sedan.

Moved: Doney Second: McKibbin That

1. Council provide in principle support for LiveBetter Oberon Community Transport to house a bus on the land currently occupied by Oberon Community Transport, at their own cost.



2. Council consult with Live Better to provide an appropriate location for the carport for their

consideration.

Carried 03 090419

05.03 2019/20 OPERATIONAL PLAN

File No: Governance/Meetings/Finance Committee Author: Gary Wallace, General Manager; Lynette Safranek, Corporate Services Director; Shane Wilson, Planning & Development Director; and Chris Schumacher, Technical Services Director

Summary This report provides Councillors with an overview of the Operational Plan process for 2019/20. The plan will be Operational Plan will be presented to the April 2019 Ordinary Meeting to be placed on Public Exhibition prior to approval at the June 2019 Ordinary Meeting.

Moved: Doney Second: Capel That Council note report 05.03 as information. Carried 04 090419

05.04 INTERIM EXTERNAL AUDIT MANAGEMENT LETTER


Summary Intentus conducted the interim external audit visit on 5-6 March 2019 at the Council Office. This visit was for the auditors to familiarise themselves with Council’s systems and commencing testing. This report provides Council information on the outcomes of that visit.

Moved: Kellam Second: McKibbin That Council receive Report 05.04 as information.

Carried 05 090419



05.05 CTA AUDIT COMMITTEE MEETING


Summary The Central Tablelands Audit Committee held its meeting on 14 March 2019. This report outlines the discussion held at the meeting.

Moved: Doney Second: McKibbin That Council receive Report 05.05 for information.

Carried 06 090419

6. CLOSED SESSION / CONFIDENTIAL REPORTS

Summary In accordance with the Local Government Act 1993 and the Local Government (General) Regulation 2005, in the opinion of the General Manager, the following business is of a kind as referred to in Section 10A(2) of the Act, and should be dealt with in a part of the meeting closed to the media and public.

06.01 SECTION 356 FINANCIAL ASSISTANCE APPLICATIONS

File No: Governance/Meetings/Finance Committee/April 2019 Author: Lynette Safranek, Corporate Services Director

This item is classified CONFIDENTIAL under section 10A(2)(a) and (c) of the Local Government Act 1993, which permits the meeting to be closed to the public for business relating to the following: (a) Personnel matters concerning particular individuals (other than Councillors) (c) Information that would, if disclosed, confer a commercial advantage on a person with whom the Council is conducting (or proposes to conduct) business.

Moved: Capel Second: McKibbin That Council receive the report for information. Carried 07 090419 Council moved into Closed Session at 6.22pm. Members of the public present left the meeting at this point in time.



7. GENERAL BUSINESS

Clr McCarthy – CCTV cameras Clr McCarthy asked CCTV checked on a Friday each week by staff and signed this to be set as a staff KPI.

8. CLOSURE OF MEETING

The Mayor declared the Meeting closed at 7.57pm. The next Finance Committee Meeting of Oberon Council will be held on: a date to be advised. in the Oberon Council Chambers 137 – 139 Oberon Street, Oberon.


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5. REPORTS

05.01 TOWN IMPROVEMENT LEVY ALLOCATION

File No: S:/Governance/Finance Committee/November 2019 Author: Gary Wallace, General Manager

Summary

In October 2019, Council staff provided an analysis of the Town Improvement (TI) Levy externally restricted. As a result of this analysis, this report is to allocate non-expended funds identified in the current Community Strategic Plan of $85,670 for the period 2014/15 to 2018/19 financial years.

Recommendation: That Council:

1. Allocate the $85,670 to the extension of the CCTV network within the Oberon CBD.

2. In accordance with the Local Government Act, Council place this information on public exhibition for a period of 28 days and present a report to Council to consider any submissions prior to approval.

Comment

Council previously received a report outlining an anlysis of the Town Improvement Fund in October 2019. It was found and resolved that as part of that resolution that: The General Manager report back to Council with a proposal to allocate non-expended funds to projects identified in the current Community Strategic Plan.

In accordance with Council’s current Community Strategic Plan, Strategy 1.4.2 states:

Maintain and expand CCTV services in the communities

The extension of current CCTV imagery within the commercial district of Oberon is an appropriate use of the unallocated funds. The continuation of this current network would provide for a better security and safety within the CBD. Alternatively, Council resolved at its September 2019 Ordinary Meeting to allocate $400,000 from the Land & Development Internal Reserve to complete the project to construct six additional independent living units at Curtis Street through an internal loan. In accordance with Council’s current Community Strategic Plan, Strategy 1.3.16 states:

Provide and maintain the Independent Living Units

Further Strategy 1.3.17 states:

Opportunities and funding to expand Independent Living Units

A further option could be to allocate the $85,670 to the construction of six new Indepenent Living Units. Thereby reducing the transfer from the Land & Development Internal Reserve to $314,330. In accordance with Section 410 of the Local Government Act, Council staff have sort advice and it does not require Ministerial approval as the movement of these funds is an internal transfer.


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05.02 QUARTERLY BUDGET REVIEW STATEMENT – July to Sept 2019

File No: Governance/Meetings/Finance Committee/November 2019 Author: Theresa Boyd, acting Chief Financial Officer; Lynette Safranek, Corporate Services Director

Summary The Quarterly Budget Review Statement (QBRS) is presented with income and expenditure for the period from 1 July to 30 September 2019.

Recommendation:

That report item 05.02 is received as information.

Summary

FOLLOWING is the Quarterly Budget Review Statements (QBRS) for the period 1 July to 30 September 2019 in accordance with the requirements of the Office of Local Government. Councils’ 2019/20 adopted consolidated budget recognised a small surplus of $1,762 after capital expenses (General Fund Surplus $1,762 and the Water & Sewer Funds both being balanced budgets at $0.00). Council is making several budget adjustments to recognise increased expenses and associated reserve offsets in the September 2019 review. These adjustments have a NIL impact on the adopted surplus of $1,762. Council Resolutions 17th September 2019 $40K Transferred from Roads Maintenance to Assets Management for the Audit of SRV

Road Expenditure. [Item 13.04] $450K Drawdown of Section 94 Restricted Funds for the reseal of Hargraves Road.

[Item 13.09] Council Resolutions 15th October 2019 $96.4k Drawdown Section 94 Restricted Funds for the completion of the Water Bores at

O’Connell and Black Springs. [Item 13.08] $56.4k Transferred from Roads Maintenance to Plant Purchases for the purchase of a

Mulcher. [Item 13.06] Please note restricted relates to revenue received in a prior year and restricted for use at a later date. Section 94 of the Environmental Planning and Assessment Act 1979 permits Council to levy or require provision of facilities or land where, as a consequence of development, the increased number of residents or workers will result in an increased demand for those services. Council has deemed that the reseal of Hargraves Road and the completion of the Water Bores at O’Connell and Black Springs fall within criteria surrounding the expenditure of these monies. As at September 2019, Councils’ year to date [YTD] actual revenue and expenditure of $3,161,447 surplus shows that council is on track, taking into account timing of budgeted grants arriving outside of budget conditions.


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As at September 2019, Council has received 51.62% of the budgeted revenue, a result of the rates and annual charges recognised in full in July 2019. Council recognises revenue from rates and annual charges in full each July when the rates are levied. This is reflected in the increased surplus in both budget and actual figures for September 2019. This surplus will decline over the following months, as monthly operating expenses occur. Several expenses such as insurances, subscriptions and community donations are also budgeted in full. All other revenue and expenses are budgeted monthly over a 12 month period. Operating expenses which don’t fluctuate greatly from year to year outside of CIP increases are on track with budget. Council is approximately 30% of the way into the budgeted capital works program, with the Technical Services Department having focused on capital projects in the first quarter. Following decisions made by the RBA to possibly reduce the cash rate again, Council staff reviewed the impact that this will have on the 2019/20 budget. It is the view of staff that councils budget of $315,332 is conservative and will be met due to long term deposits maturing. The impact of the current RBA decisions will not be felt until 2020/21 when term deposits placed during 2019/20 begin to mature. Appropriate measures will be taken for the 2020/21 budget. Council has further reviewed the anticipated grants and user fees & charges within the 2019/20 budget. At this point in time, staff believe there is no requirement for adjustment as there has been no significant changes to State and Federal funding to date. While there has been an increase in water usage during the first quarter, there is typically a decline in water usage towards the end of the financial year. Council staff will revisit the need for a budget review in the December and March quarters. The 2019/20 rates and annual charges levy has come in under budget as a result of changes to land valuations received from the Valuer General following the adoption of the rates model, but prior to striking the rates. Land valuations can change due to a number of reasons. Council is advised through “supplementary listings” from the Valuer General on a monthly basis. Council will reassess the need for a budget adjustment in the December budget review. Councils operating expenses are sitting at 30.2%, which can be attributed to the recognition of insurances, subscriptions and community donations paid in July 2019. Capital works are currently sitting at 30.3% with Council concentrating on capital works early in the financial year and maintenance in the latter half of the financial year. Councils Budgeted Operating Performance Ratio for 2019/20 has dropped to 6.32% [represented as 2019/20 (RB) on the graph below] from 9.75%, as reported in the 2018-19 Financial Statements. This drop is a result of $1,410 million FAG monies for the first half 2019/20 being received and recognised in 2018/19 [hence the restriction on this money as at 30 June 2019], the recognition in 2018/19 is a requirement of the Office of Local Government. The accounting standards in relation to the recognition of this funding is due to change in 2019/20.

This Ratio measures Council's achivement of containing operating expenditure within operating revenue


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The budget is based on known information at a point in time, this can change over the financial year with new grant funding becoming available which will impact on this ratio. The “actual” Operating Performance Ratio is represented as [2019/20 (A) on the graph above and is currently sitting at 1.92% however this is representative of movement for 3 months only and is higher than this time last year when it was 1.5%. This result is above the NSW State Government benchmark of 0%.

This ratio measures council's reliance on external funding sources such as operating grants & contributions

Councils’ Budgeted Own Source Operating Revenue Ratio at 69%, which is above the benchmark of 60%. However this ratio, like the operating performance ratio, is based on known information at a point in time and can change over the financial year with new grant funding becoming available which will impact on this ratio. Council has drawn down $2.356M in restricted funds in the Q1 September 2019 budget review, to be expended during the 2019/20 financial year. This is represented by $1.410M in internally restricted monies relating to the pre-payment of the unrestricted Financial Assistance Grant for 2019/20 received in the 2018/19 financial year, as well as $96,462 in externally restricted Section 94 for the completion of the Water Bores at O’Connell and Black Springs, $450,000 Section 94 for the resealing of Hargraves Road, and $400,000 for the completion of the Independent Living Units. The net result of these drawdowns is a current reduction in restricted funds from $16.844M to $14.488M as shown in the below table. This will change during the course of the financial year with movement of unexpended monies received. Council has also moved $220,000 from TI restricted, as well as $15,000 (rounded) from Section 94, as previously tabled, to the Library restricted in the General Fund, a total of $235,000 for the Library Hub. Water and Sewer are funds in their own right and any surplus at the end of each year are automatically restricted for use in these areas only. They can not be expended or offset against any other fund. Domestic Waste and Town Improvement, while individual funds, are consolidated within Councils General Fund, however these funds are restricted by Council for use under the fund guidelines. Councils 2019/20 budget for employee costs and benefits are based on a standard week for all staff plus on-costs, contractors have been budgeted for all other labour related work. However, this could change during the year with work being undertaken by council staff on an “overtime” basis, in turn increasing employee costs and decreasing contractor costs. The 2019/20 Income and Expense Statements are reported for 2019/20 onwards in the new themes set by the Community Strategic Plan.


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Income & Expense Statement – YTD Budget v YTD Actual Explained

Community Well Being YTD Budget $-285k v YTD Actual $-369k Community donations paid in July and work has commenced on

the independent Living Units A Growing Economy YTD Budget $59.2k v YTD Actual $-131.6k Proceeds from the sale of land budgeted not yet realised Purchase of land budgeted recognised in full Caring for the Environment YTD Budget $-322.7k v YTD Actual $-392.6 On track – timing of RFS grants Infrastructure & Services YTD Budget $-657.6k v YTD Actual $726.8k On track the receipt of FAG/Block/R2R grants prior to

expenditure has created this differential. Leadership & Engagement YTD Budget $3.282.8M v YTD Actual $3.327M On track, taking into account rates & annual charges, plus

insurance and subscriptions recognised in July for 12 months. . Restricted Cash and Investments (Reserves) @ 30 September 2019

Restrictions Opening Balance

Closing Balance

External restrictions

Developer contributions – general - Sub 9420 1,975 1,414

Specific purpose unexpended grants

Library Grant - Sub 9417 50 50

Oberon NAIDOC Week 1 1

Burraga & Black Springs Village Playground Softfall 46 46

Grandstands 32 32

Rotary Look Out - Falls Hills Oberon 4 4

Black Springs Comminity Hall Kitchen 2 2

Primitive Campground 23 23

Tech Savvy Seniors 1 1

Community Events 14 14

Data Projector/Motorised Multimedia Screen 1 1

Fitness Centre 150 150

Fitness Centre Equipment Fitout 4 4

Tourism 14 14

Oberon Outdoor Week (Tourism) 20 20

Oberon Place Branding/New Town Signage 42 42

RV Dump Point/Tourist Boards 13 13

Water supplies 1,665 1,665

Sewerage services 3,875 3,875

Domestic waste management - Sub 9408 896 896

Town improvements - Sub 9413 1,305 1,085

Total external restrictions $10,133 $9,352


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Restrictions Opening Balance

Closing Balance

Internal restrictions

Plant and vehicle replacement 411 411

Employees leave entitlement 848 848

Cemetery plaques 11 11

Community centre 9 9

Community technology centre 9 9

Community – –

Oberon Street Paving 130 130

Awing Cook Park 70 70

Oberon League Ticket Booth 10 10

Oberon League Lighting Tower Upgrade 30 30

Burraga Village Improvement 10 10

Black Springs Improvement 10 10

O'Connell Improvements 10 10

Golf Day 6 6

Oberon Heritage & Collectore Club 2 2

Council Elections 26 26

Engineering Instruments 87 87

Garbage depot 850 850

Gravel pits 150 150

Information technology 50 50

Land development 1,005 1,005

Tourism 20 20

Finance – –

Legal Fees 80 80

Rural Fire Service 18 18

System Upgrade & Training Restriction 200 200

Library 6 6

General Equipment – –

Hub – 235

Office equipment 29 29

Rail crossings update 38 38

Residential dwellings 100 100

Works Restriction 277 277

FAGs 50% 2018-19 1,410 –

Independent Living Units 769 369

Swimming pool 30 30

Total internal restrictions $6,711 $5,136

TOTAL RESTRICTIONS $16,844 $14,488


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2019-20 2019-20 2019-20 2019-20

Budget QBR 1Revised

Budget

Actual Sept

2019

Rates & Annual Charges 5,985,120 0 5,985,120 5,954,379

User Charges & Fees 4,794,020 0 4,794,020 1,209,573

Interest & Investment Revenue 315,332 0 315,332 42,068

Other Revenues 449,000 44,600 493,600 428,169

Grants & Contributions provided for Operating Purposes 4,953,258 -44,600 4,908,658 1,134,513

Grants & Contributions provided for Capital Purposes 456,000 0 456,000 4,365

Employee Benefits & On-Costs -5,857,077 0 -5,857,077 -1,605,340

Borrowing Costs -123,406 0 -123,406 -11,047

Materials & Contracts -2,820,789 56,400 -2,764,389 -617,404

Depreciation & Amortisation -3,222,426 0 -3,222,426 -804,311

Other Expenses -2,094,659 15,000 -2,079,659 -1,186,424

Net gains from the disposal of assets 335,000 0 335,000 107,821

Internal Income 0 0 0 0

Internal Movements 328,640 450,000 778,640 -27,695

Profit / Loss before Capital Expenditure 3,498,014 521,400 4,019,414 4,628,666

Capital Expenditure - Material & Contracts -3,385,077 -617,821 -4,002,898 -1,292,761

Capital Expenditure - Employee Benefits & On-Costs -834,552 0 -834,552 -184,138

Capital Expenditure - Other Expenses 0 0 0 9,680

Transfers from Restricted 723,378 96,421 819,799 0

Profit / Loss after Capital Expenditure 1,763 0 1,763 3,161,447

2019/20 Income & Expenses Budget

Council Consolidated

Budget Review - QBR 1 - September 2019


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2019-20 2019-20 2019-20 2019-20

Budget QBR 1Revised

Budget

Actual Sept

2019

Rates & Annual Charges 4,786,040 0 4,786,040 4,780,314

User Charges & Fees 3,110,050 0 3,110,050 409,105


Other Revenues 449,000 44,600 493,600 422,767

Grants & Contributions provided for Operating Purposes 4,652,217 -44,600 4,607,617 1,134,513

Grants & Contributions provided for Capital Purposes 176,000 0 176,000 17,730

Employee Benefits & On-Costs -5,380,018 0 -5,380,018 -1,430,968

Borrowing Costs -123,406 0 -123,406 -11,047

Materials & Contracts -1,937,065 56,400 -1,880,665 -397,778

Depreciation & Amortisation -2,904,292 0 -2,904,292 -724,778

Other Expenses -1,904,813 15,000 -1,889,813 -1,146,929

Net gains from the disposal of assets 335,000 0 335,000 107,821


Internal Expenditure 498,679 450,000 948,679 14,815

Profit / Loss before Capital Expenditue 2,040,392 521,400 2,561,792 3,211,551

Capital Expenditure - Material & Contracts -2,137,470 -521,400 -2,658,870 -1,229,494

Capital Expenditure - Employee Benefits & On-Costs -771,159 0 -771,159 -183,368

Capital Expenditure - Other Expenses 0 0 0 0

Transfers from Restricted 870,000 0 870,000 0

Profit / Loss after Capital Expenditure 1,763 0 1,763 1,798,690


Income & Expenses Budget Review Statement

General Fund


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2019-20 2019-20 2019-20 2019-20

Budget QBR 1Revised

Budget

Actual Sept

2019

Rates & Annual Charges 461,034 0 461,034 460,499

User Charges & Fees 1,310,000 0 1,310,000 617,351


Other Revenues 0 0 0 5,403

Grants & Contributions provided for Operating Purposes 290,368 0 290,368 0

Grants & Contributions provided for Capital Purposes 0 0 0 0

Employee Benefits & On-Costs -314,515 0 -314,515 -101,508

Borrowing Costs 0 0 0 0

Materials & Contracts -812,682 0 -812,682 -195,569

Depreciation & Amortisation -177,980 0 -177,980 -44,495

Other Expenses -84,730 0 -84,730 -15,819

Net gains from the disposal of assets 0 0 0 0


Internal Expenditure -62,392 0 -62,392 -15,598

Profit / Loss before Capital Excpenditure 618,435 0 618,435 713,762

Capital Expenditure - Material & Contracts -376,607 -96,421 -473,028 -45,779

Capital Expenditure - Employee Benefits & On-Costs -63,393 0 -63,393 -127


Transfers from Restricted -178,435 96,421 -82,014 0

Profit / Loss after Capital Expenditure 0 0 0 667,856


Water Fund



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2019-20 2019-20 2019-20 2019-20

Budget QBR 1Revised

Budget

Actual Sept

2019

Rates & Annual Charges 738,046 0 738,046 713,567

User Charges & Fees 373,970 0 373,970 183,118


Other Revenues 0 0 0 0

Grants & Contributions provided for Operating Purposes 10,673 0 10,673 0

Grants & Contributions provided for Capital Purposes 280,000 0 280,000 -13,366

Employee Benefits & On-Costs -162,544 0 -162,544 -72,864

Borrowing Costs 0 0 0 0

Materials & Contracts -71,043 0 -71,043 -24,057

Depreciation & Amortisation -140,153 0 -140,153 -35,038

Other Expenses -105,115 0 -105,115 -23,676

Net gains from the disposal of assets 0 0 0 0


Internal Expenditure -107,647 0 -107,647 -26,912

Profit / Loss before Capital Expenditure 839,187 0 839,187 703,353

Capital Expenditure - Material & Contracts -871,000 0 -871,000 -7,808

Capital Expenditure - Employee Benefits & On-Costs 0 0 0 -643


Transfers from Restricted 31,813 0 31,813 0

Profit / Loss after Capital Expenditure 0 0 0 694,901

Sewer Fund




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2019-20 2019-20 2019-20 2019-20

Budget QBR 1Revised

Budget

Actual Sept

2019

Revenue

Community Well Being 214,471 0 214,471 160,058

A Growing Economy 285,000 0 285,000 13,341

Caring for the Environment 391,300 0 391,300 174,725

Infrastructure & Services 10,011,417 0 10,011,417 4,212,507

Leadership & Engagement 6,300,542 0 6,300,542 4,320,257

Total Income From Continuing Operations 17,202,730 0 17,202,730 8,880,888

Expenses

Community Well Being -935,592 0 -935,592 -266,945

A Growing Economy -496,539 15,000 -481,539 -132,240

Caring for the Environment -1,682,158 0 -1,682,158 -567,409

Infrastructure & Services -9,565,257 56,400 -9,508,857 -2,293,156

Leadership & Engagement -1,473,810 0 -1,473,810 -992,471

Total Expenses From Continuing Operations -14,153,356 71,400 -14,081,956 -4,252,221

Capital Works

Community Well Being -419,403 0 -419,403 -261,911

A Growing Economy 0 -15,000 -15,000 -12,727

Caring for the Environment 0 0 0 0

Infrastructure & Services -3,800,227 -602,821 -4,403,048 -1,192,510

Leadership & Engagement 0 0 0 -71

Total Capital Works -4,219,629 -617,821 -4,837,450 -1,467,219

Transfers from Restricted

Community Well Being 0 0 0 0

A Growing Economy 448,640 0 448,640 0

Caring for the Environment 0 0 0 0

Infrastructure & Services 723,378 546,421 1,269,799 0

Leadership & Engagement 0 0 0 0

Total Transfers from restricted 1,172,018 546,421 1,718,439 0

Net

Community Well Being -1,140,524 0 -1,140,524 -368,798

A Growing Economy 237,101 0 237,101 -131,626

Caring for the Environment -1,290,858 0 -1,290,858 -392,684

Infrastructure & Services -2,630,688 0 -2,630,688 726,841

Leadership & Engagement 4,826,733 0 4,826,733 3,327,715

Total Net 1,763 0 1,763 3,161,447


Community Strategic Plan



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05.03 STATEMENT OF INVESTMENTS

File No: S:/Governance/Finance Committee/November 2019 Author: Lynette Safranek, Corporate Services Director; Lisa Koleda, Management Accountant

Summary This report provides Council with the Statement of Investments as at 31 October 2019.

Recommendation: That Council receive report item 05.03 as information.

Comment

Interest received on matured investments for October 2019 came to $21,479 whilst interest accrued on active investments for October 2019 came to $30,951, with an average interest rate of 2.25% performing above the average 90 day Bank Bill Swap Rate of 0.87%. Year to date interest accrued at the end of October 2019 on active Term Deposits sits at $147,888. Total year to date interest receipted on matured investments is $169,954. This includes quarterly interest receipts for three individual 5 year floating term deposits with CBA which mature in 2021. As this report was finalised prior to the November RBA Board Meeting on 5 November, there will be a verbal update from the Corporate Services Director at the meeting should the RBA announce a cash rate movement. The average monthly return for Councils term deposit investment portfolio continues to drop, with October 2019 resulting in another downward trend in Councils monthly return. Staff have reviewed Council’s investment policy which is being presented to the CTA Audit and Risk Improvement Committee (ARIC) in December for review. Once this review is complete, it will be presented to Council for consideration. At 31 October Council had $16.3 million invested, with Oberon Council’s total cash at call being $16,818,628.54. Below is a summary of Council’s Cash at Call:

Institution Date of

Investment Interest

rate Date of Maturity Value

Cash at Call

CBA Business Online Saver $5,282.25

CBA Business At Call $509,630.24

NAB Business Online Saver $3,716.05

Total $518,628.54


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Below is a summary of Council’s active investments as at 31 October 2019.

Institution Date of

Investment Interest

rate Date of Maturity Value

Active Term Deposits

AMP Bank Ltd 18/02/2019 2.80% 06/11/2019 500,000.00

Defence Bank LTD 21/12/2018 2.90% 19/11/2019 500,000.00

ING Bank 01/12/2017 2.90% 02/12/2019 500,000.00

Defence Bank LTD 20/12/2018 2.90% 17/12/2019 500,000.00

AMP Bank LTD 18/03/2019 2.75% 15/01/2020 500,000.00

AMP Bank LTD 20/03/2019 2.75% 29/01/2020 500,000.00

AMP Bank Ltd 19/07/2019 2.15% 12/02/2020 500,000.00

Judo Bank LTD 19/07/2019 2.50% 26/02/2020 500,000.00

Auswide Bank LTD 19/06/2019 2.20% 11/03/2020 500,000.00

Auswide Bank LTD 19/06/2019 2.20% 25/03/2020 500,000.00

Bank Vic 04/04/2019 2.61% 08/04/2020 500,000.00

G & C Mutual Bank 17/04/2019 2.55% 08/04/2020 500,000.00

Bank Vic 04/04/2019 2.61% 22/04/2020 500,000.00

Judo Bank 08/05/2019 2.70% 23/04/2020 500,000.00

ME Bank 08/08/2019 1.70% 06/05/2020 500,000.00

Australian Unity Bank LTD 30/04/2019 2.40% 20/05/2020 500,000.00

ME Bank 20/08/2019 1.65% 04/06/2020 500,000.00

AMP Bank LTD 16/07/2019 2.20% 17/06/2020 500,000.00

My State Bank Limited 04/09/2019 1.60% 16/07/2020 500,000.00

Bank of Queensland 26/07/2018 3.00% 22/07/2020 1,000,000.00

Family First Credit Union 29/08/2019 1.80% 26/08/2020 500,000.00

My State Bank Limited 04/09/2019 1.60% 27/08/2020 500,000.00

AMP Bank Ltd 09/09/2019 1.80% 08/09/2020 500,000.00

AMP Bank Ltd 18/09/2019 1.80% 22/09/2020 500,000.00

Commonwealth Bank (5yr TD) 30/06/2016 2.79% 30/06/2021 500,000.00

Family First Credit Union 07/08/2019 1.90% 07/08/2021 500,000.00



Bank of Queensland 22/08/2019 1.70% 20/08/2021 500,000.00

Bank of Queensland 06/09/2019 1.90% 06/09/2023 500,000.00

Macquarie Bank Ltd 09/10/2019 1.45% 21/10/2020 500,000.00

Total $16,300,000.00

Total Cash at Call $16,818,628.54


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Investments matured in October 2019:

Institution Date

invested Rate Maturity

date Amount Interest earned

MyState Bank LTD 29/11/2018 2.80% 09/10/2019 500,000 12,043.84

AMP Bank LTD 18/02/2018 2.80% 23/10/2019 500,000 9,435.62

Total Interest earned $21,479.46

Investments placed in October 2019:

Institution Date

invested Rate Maturity

date Amount Interest at

Maturity

Macquarie Bank LTD 09/10/2019 1.45% 21/10/2020 500,000 7,508.22

Total Interest due $7,508.22

Note: AMP Bank Ltd term deposit was redeemed for the month of October due to cash flow requirements.

Councils MyState Ltd investment matured and rolled into Macquarie Bank Ltd in October will see a drop in interest revenue of $4,535.62 in 2019/2020 as a result of further downslides to interest rates currently offered by financial suppliers across the board. Councils MyState investment rolled into Macquarie Bank at 1.45%, replacing a 2.80% interest earnings. Total reduction YTD on new term deposit interest earnings at maturity is currently sitting at $43,969.13. Councillors have asked for information on the institutions that we currently have investments with. Below is a summary of each institution as well as their Standard & Poors (S&P) rating. Each time a new institution is used to invest funds, Council staff will include a summary in the Investment Report. AMP Bank Ltd – BBB+ In August 2019 ratings agency S&P Global downgraded the credit worthiness of troubled wealth manager AMP and its subsidiaries by one notch, after it agreed to sell its life insurance unit to Britain's Resolution Life. AMP unveiled renewed plans to sell the unit earlier in August and raised $650 million to fund the restructuring of its flagship wealth-management business, as it posted its biggest half-year loss as a listed company. S&P advised it had lowered AMP's group rating by one notch to BBB+, because without the insurance unit AMP's earnings would rely on its troubled wealth and investment management operations, as well as its small domestic banking unit. "The downgrade of AMP Ltd reflects our view of its weakened group credit profile, with lower expected diversification with the pending divestment of AMP Life Ltd and the reliance on lower-rated operating subsidiaries," the agency said in a statement. AMP has said the changes are not material to its operations and the company continues to have a strong balance sheet and capital position. AMP is fighting to steady itself a year after a public inquiry into Australia's finance sector, in the wake of accusations of improperly charging fees and attempting to deceive regulators.


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Australian Unity Bank – BBB Previously known as Big Sky Building Society, which was originally a group of credit unions and building societies for specific employer groups providing banking solutions for over 30 years. In 2012 Big Sky BS became a part of the Australian Unity family eventually being renamed Australian Unity Bank Limited in October 2018 as a natural progression, offering a broader range of products and services to all Australians. Australian Unity was founded in 1840 established in response to community needs identifying and helping solve the health and financial needs of the broader community. Auswide Bank LTD – BBB Auswide has operated for over 50 years and is Australia’s 10 th bank with assets under management of over $3 billion. Originating in regional Queensland, they now have Australia-wide lending presence supported through branches, business bankers, and accredited mortgage brokers and online. Auswide is listed on the Australian Stock Exchange as an ADI and deliver solid growth and returns for their stakeholders. Bank of Queensland LTD – BBB+ BOQ was originally established in 1874 as The Brisbane Permanent Benefit Building and Investment Society. In 1970 the company changed its name to Bank of Queensland and computerised it operations, then was listed on the Australian Stock Exchange in 1971. BOQ was inducted into the Queensland Business Leaders Hall of Fame in 2014, recognising they excellence in providing banking services to Queensland for over a century and its continuing national expansions. Commonwealth Bank – AA- The Commonwealth Bank was founded under the Commonwealth Bank Act in 1911 and commenced operations in 1912. Today they have grown to a business with more than 800,000 shareholders and 52,000 people working within the Commonwealth Bank Group. In 2018, findings from the Royal Commission into misconduct in the banking, superannuation and financial services industry have pointed to a negative culture within the bank due to allegations of various financial crimes. Defence Bank LTD – BBB Defence Bank commenced operations in 1975 as Defence Force Credit Union Limited before changing its name to Defence Bank in 2012, now with 39 branches around Australia. Defence Bank offers financial products and services to not only the Australian Defence Force, but also the broader community and is one of Australia’s larger member-owned banks. Defence Bank re-invest profits back into the bank to be sure to provide competitive products and services. Family First Credit Union – NR A group of employees of the Small Arms Factory in Lithgow originally established S.A.F.E Credit Union. In 1975 the union changed its name to Lithgow Mutual CU and in 1997, members voted to change the name to Family First Credit Union, extending their operations to all residents within Australia. Being a local institution they have a well developed and sound knowledge of the market together with strong relationships with the community. ING Bank Australia LTD – A Founded in 1999, ING Australia was Australia’s first direct bank (branchless, virtual, online or internet-only bank). It has since grown to become the largest mortgage lender outside of Australia’s Big Four banks. ING Bank is a branch of a foreign bank so therefore not covered by the FCS (Financial Claims Scheme). Note: Council has ceased using ING Bank since December 2017 due to the insecurity of not

being covered by the FCS. This last term deposit placed with ING Bank in December 2017 is due to mature December 2019.


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Judo Bank – NR Judo Bank is an Australian challenger bank launched in 2018 with its focus being on the shortfall in lending to small and medium-sized businesses. The equity raised a record-breaking $140 million in August 2018, the following November it secured a $350 million debt facility from Credit Suisse. The start-up also secured its full authorised deposit-taking institution (ADI) licence in April, when it re-branded from Judo Capital to Judo Bank. Co-founders of Judo Bank, Joseph Healy and David Hornery both have previous successful executive careers at the National Australia Bank. Macquarie Bank – A Macquarie Bank was founded in 1969 as the Australian subsidiary of The Hill Samuel David Clarke, later changing its name in 1985 to Macquarie Bank Ltd. Now a global business operating in over 27 countries, Macquarie Bank employs specialist expertise in areas such as resources, agriculture and commodities, energy and infrastructure. Members Equity Bank LTD – BBB Founded in 1994 as Super Member Home Loans (SMHL) by Australia’s Industry Super Funds, SMHL became Members Equity Bank in 1999 and received a banking licence from the Australian Prudential Regulatory Authority (APRA) in July 2001 and was approved by APRA to act as an ADI. ME Bank serve Australia wide, has a current total asset worth of $27,300 billion and over 1,800 staff employed. ME Bank operates as a direct bank. MyState Bank LTD – BBB+ MyState Limited is an Australian financial group which formed in 2009 following the merger of Tasmanian Perpetual Trustees and MyState Financial. In 2011 it further purchased the Queensland-based Rock Building Society for $68.3 million. MyState Bank’s current total equity is $265 million and employs 400 staff with over 200,000 customers across Australia. Police Financial Services LTD/Bank VIC – BBB+ Established in 1974, their goal was to improve the financial wellbeing of the Victorian Police members and their families. This bank now offers a wide range of financial services to specific sectors of the community which incudes the police, health, public service and emergency services. Bank VIC is based in Victoria, seeing members grown to 113,541 with $2 billion in assets they are still small enough to continue in their vision of helping to build healthy communities that are financially, socially and environmentally sustainable. SGE Mutual LTD – BBB- Established in 1959 as the Public Works Department Staff Cooperative, G&C Mutual Bank Limited has since grown to be one of Australia’s strongest member-owned financial institutions. Numerous mergers, solid growth and consistent performance have lead to G&C Mutual Bank’s success. G&C Mutual Bank finished the 2017/18 financial year reporting total assets of $1.121 billion and $105 million in member’s equity. I certify that the investments have been made in accordance with Section 625 of the Local Government Act 1993, Clause 212 of the Local Government (General) Regulations 2005, and Council's Investments Policy. Lynette Safranek Responsible Accounting Officer


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05.04 LEGAL AND CONSULTANCY FEES

File No: S:/Governance/Finance Committee/November 2019 Author: Lynette Safranek, Corporate Services Director

Summary This report outlines Legal and Consultant transactions for the period 1 July to 30 September 2019.

Recommendation: That Report 05.04 is received as information.

Comment

The table below is a list of all legal and consultancy expenditure by Council for the period 1 July to 30 September 2019. All legal and consultancy expenditure were budgeted and came in under budget.

Company Reason Total ($)

Legal

Bartier Perry PID $2,915.40

Crennan Legal Planning Legal Advice and Representation $29,936.28

Ms S Duggan Planning Legal Advice and Representation $900.00

SJB Planning Planning Legal Advice $925.00

Ian Hemmings SC Planning Legal Advice and Representation $11,700.00

Jacinta Reid Barrister Planning Legal Advice and Representation $5,800.00

Total $52,176.68

Consultants

Black Adder GM Performance Review $4,218.08

CENTROC Management of Electricity Procurement $2,250.00

Gilgandra Shire Council State of the Environment Data $4,545.45

Christo Aitken & Assoc. Heritage Advisor $2,733.44

Total $13,746.97


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05.05 OBERON YOUTH COUNCIL SPONSORSHIP

File No: S:/Governance/Finance Committee/November 2019 Author: Lynette Safranek, Corporate Services Director

Summary The Oberon Youth Council is looking to sponsor Cody Francis who has been selected to take part in the Western NSW Soccer Tour of the United Kingdom in January 2020. This report provides a request to the Oberon Council to match this sponsorship.

Recommendation:

That Oberon Council provide $250 sponsorship to Cody Francis to be matched by the Oberon Youth Council.

Comment

At the Oberon Youth Council meeting held on Wednesday 24 October 2019, the Oberon Youth Council considered a request to assist Cody Francis who has been selected to take part in the Western NSW Soccer Tour of the United Kingdom in January 2020. Twenty five young people from Central NSW have been invited to participate, broaden their soccer knowledge and improve their skills. The tour includes training sessions with Manchester United and other professional organisation. Cody is fundraising himself and would be grateful if Oberon Council could assist with sponsorship to assist with his trip. At the October meeting, the Oberon Youth Council unanimously decided to sponsor Cody Francis and in accordance with their Charter, the Youth Council are now looking to the Oberon Council to match their sponsorship. The Oberon Youth Council has agreed to sponsor the Ozy Youth Choir in 2019/20. The Oberon Youth Council aim to sponsor two young youth (or youth groups) per year, Cody Francis would be the second sponsorship for 2019/20. There are funds available within the Community Services budget to enable the Oberon Youth Council and Oberon Council to co-sponsor Cody with $500.

Notes:


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6. GENERAL BUSINESS

Notes:

7. CLOSURE OF MEETING

The Mayor will declare the meeting closed. The next Finance Committee Meeting of Oberon Council will be held on a date to be determined in the Oberon Council Chambers 137 – 139 Oberon Street, Oberon.

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