Finance and Governance Committee

Notice of Meeting

Monday, 09 April 2018

 

 

BUSINESS

1.      Apologies

2.      Disclosures of Interest

3.      Minutes of previous meetings

4.      Committee Reports

 


Finance and Governance Standing Committee Meeting

Summary of Items

Monday, 09 April 2018

 

Previous Minutes

MINUTES: Finance and Governance - 12 March 2018 (17/1831)  

Committee Reports

FIN017-18         Advice on Costs and Status of Council's Court Proceedings - March 2018

(Report by General Counsel)....................................................................................... 2

FIN018-18         Councillor Attendance and Professional Development

(Report by Acting Head of Executive Services)...................................................... 16

FIN019-18         Audit, Risk and Improvement Committee Minutes from 30 October 2017

(Report by Internal Auditor)........................................................................................ 26

FIN020-18         Georges River Council Quarterly Property Portfolio Report

(Report by Strategic Property Specialist)................................................................. 34

FIN021-18         Investment Report as at 28 February 2018

(Report by Financial  Accounting Officer)............................................................... 42

FIN022-18         The Second International Workshop on Eco-shoreline Designs for Sustainable Coastal Development

(Report by Manager Project Delivery)....................................................................... 57

FIN024-18         Quarterly Budget Review for Quarter Ending 31 December 2017

(Report by Acting Chief Financial Officer).............................................................. 59   

 


Georges River Council – Finance and Governance Standing Committee Meeting -  Monday, 9 April 2018              Page 2

4.      Committee Reports

Item:                   FIN017-18          Advice on Costs and Status of Council's Court Proceedings - March 2018 

Author:              General Counsel

Directorate:      Office of the General Manager

Matter Type:     Committee Reports

 

 

 

Recommendation

That the report, Advice on Costs and Status of Council’s Court Proceedings – March 2018, be received and noted.

 

Executive Summary

1.      Advice on Council’s Court Proceedings for the period 6 March 2018 to 28 March 2018 is contained within this report.

2.      Total costs to date for the 2017/18 financial year for Court proceedings are $458,681. This is within Council’s legal budget of $1million.

3.      Total legal costs recovered to date for the 2017/18 financial year are $183,938.

4.      Total costs for Court proceedings in the 2016/17 financial year were $736,241 [$575,161 (Hurstville) and $161,080 (Kogarah)].

Background

5.      The current Court Proceedings for the reporting period are broken down as follows:

Supreme Court

·   1 x Application under s88K for property easements (Telado) over Council’s land

Land and Environment Court

·   20 x Class 1 (Merit/DA)

·   5 x Class 4 Proceedings (including 3 x Contempt of Court proceedings)

District Court

·   1 x Workers Compensation

Local Court

·   15 x Prosecutions

          NSW Industrial Relations Commission

·   1 x Dispute (United Services Union)

NSW Civil and Administrative Tribunal

·   1 x Application (Briscoe-Hough v Tegg & Ors)

Cost Recovery

·   7 x cost recovery matters

 

Overview – New Matters

 

6.      The amended Environmental Planning & Assessment Act, 1979 commenced on 1 March 2018.  The amended Act has introduced a new numbering system for the legislation as well as substantive change across the legislation applicable to local government.  Council is in the process of reviewing its forms, templates, processes and procedures across the organisation to bring about compliance with the amended legislation.

7.      One new matter was received during the reporting period where Council is the respondent: Land and Environment Court Class 1 appeal (80 Penshurst St Pty Limited).

8.      One new Class 4 (enforcement) matter commenced – Robert and Steven Stojanovski 34 Milsop and 47 Jersey Avenue, Mortdale for unauthorised building works.

9.      Instructions given to commence contempt proceedings against Ramanous entities for repeated failure to comply with Court Orders relating to 84D Roberts Avenue, Mortdale.

10.    Judgment was handed down in Local Court matters, Daoud & Daoud Pty Limited and Kostantinos Karkoulas, for unauthorised building works.

11.    The long-running IRC matter involving USU entry onto Council’s premises was finalised with the protocol developed by Council for entry by the USU, to remain in place.  It is noted that Council now has a new USU organiser appointed to replace the previous organiser.

12.    One Land & Environment Court Class 1 matter was finalised (Marion McDowell & Associates Pty Limited), as was one cost recovery matter (AMIA Investments Pty Limited).

Judgment: Council v Daoud & Daoud Pty Limited

13.    Judgment was handed down by Magistrate Bartley at Sutherland Local Court on 16 March 2018 concerning two offences of carrying out unauthorised building work at premises in Koorabel Avenue, Lugarno. The defendant company had constructed an additional basement level at the two properties without the requisite consent of the Council.

14.    The Magistrate, in handing down his decision, noted that the defendant company was a ‘professional builder who had displayed an incompetent, negligent and cavalier belief that the work did not require consent… the defendant should have obtained advice and it was negligent not to do so..”

15.    His Honour was also critical of the defendant for pleading guilty late in the proceedings, commenting that the company had squandered months of opportunity, wasting both Court and Council’s time and resources.

16.    His Honour ultimately found the defendant guilty of the two offences and ordered a penalty of $30,400 plus prosecutor’s costs of $12,000 making a total of $42,400.

Council v Konstantinos Karkoulas

17.     Judgment was handed down by Magistrate Ashton at Sutherland Local Court on 29 March 2018 concerning one offence of carrying out unauthorised building work at premises in Queens Rd, Connells Point. The defendant had constructed a balcony above his garage not in accordance with the relevant development consent. The defendant has recently obtained a building certificate for the unauthorised works and development consent has now been granted for the use of the balcony.

18.     His Honour noted the importance of upholding the planning regulations and the responsibility of home owners to find out the controls that apply to development. 

19.     His Honour ultimately found the defendant guilty of the offence and imposed a penalty of $500 and ordered payment of prosecutor’s costs in the amount of $4,500 making a total of $5,000.

Current Table

20.    The Court Proceedings current for the reporting period are set out below. The external costs include both external legal and expert consultants’ fees.

 

 

 

No.

Property Address / Applicant / Proceedings Number

Description of Matter

Status / Critical Dates

External Costs to Date From 2017/18 FY

Land and Environment Court Proceedings – Class 1 Appeals

1

58 and 60 Blackshaw Avenue

MORTDALE

 

Applicant:

Marion McDowell and Associates

 

Proceedings No.

241879 of 2016

 

Class 1 Appeal against Council Order for demolition of existing unauthorised structure.

Judgment handed down on 13 June 2017.  Council’s order was upheld. Compliance period extended to 13 September 2017, pending outcome of building certificate application.  Building certificate application refused.  Appeal lodged.

Awaiting outcome of appeal to commence enforcement.

$7,765.00

2

70 – 78 Regent Street, Kogarah

 

Applicant: Regent Land Pty Limited ATF Regent Land Unit Trust

 

Proceedings No. 215083 of 2017

Class 1 Appeal against deemed refusal of DA 2017/111 for the demolition of existing buildings over eight lots (5 properties), amalgamation of the lots and development of an 11 storey residential flat building with 127 apartments and 145 car parking spaces.

 

Matter not resolved at S34 Conference on 6 December 2017.  Matter has now been listed for hearing on 5 and 6 July 2018.  External urban design, planning and traffic consultants briefed.

$34,848.00

3

11 Stanley Street & 28 – 36 Victoria Street, Kogarah

 

Applicant: No. 1 Victoria Dragons Pty Limited

Proceedings No. 217118 of 2017

Class 1 Appeal against deemed refusal of DA9/2017/110/1 for demolition of existing buildings and construction of a residential flat building comprising 96 residential dwellings over 3 levels of basement parking.

Matter not resolved at S34 Conference on 4 December 2017.   Matter listed for hearing on 5 and 6 July 2018.  External urban design, planning, heritage and traffic consultants briefed.

$33,022.00

4

2 – 10 Palmerston Street, Kogarah

 

Applicant: Palmerston Dragon No. 1 Pty Limited

 

Proceedings No. 217105 of 2017

 

Class 1 Appeal against deemed refusal of DA9/2017/112/1 for demolition of existing buildings and construction of a residential flat building comprising 67 residential dwellings over 2 levels of basement parking.

Matter not resolved at S34 Conference on 5 December 2017. Matter now listed for hearing on 15 & 16 August 2018.  External urban design, planning, heritage and traffic consultants briefed.

$19,890.00

5

41 – 47 Princes Highway, Kogarah

 

Applicant:

GCK Investments Pty Limited

 

Proceedings No.  235909 of 2017

Class 1 Appeal against refusal of DA183/2016 for the demolition of existing buildings and construction of a 10 storey mixed use development consisting of ground floor commercial tenancy and 51 residential apartments over basement car parking.

Matter not resolved at S34 Conference on 19 December 2017.  Matter now listed for hearing on 28 & 29 August 2018. External urban design, planning, heritage and traffic consultants briefed.

$25,691.00

6

58 and 60 Blackshaw Avenue

MORTDALE

 

Applicant:

Marion McDowell and Associates

 

Proceedings No.

294745 of 2017

 

Class 1 Appeal against refusal of Building Certificate Application No. 149D2016/0038 lodged on 21 September 2016 and refused on 20 September 2017.

Matter listed for contested hearing on 2 March 2018.  Applicant ordered to carry out structural rectification works to the warehouse building within 28 days, to pay $7,000 for contribution to storm water works and to obtain Sydney Water consent relative to the sewer assets within 3 months.

$16,120.70

7

1 – 5 Treacy Street, Hurstville

 

Applicant: G R Capital Group Pty Limited

 

Proceedings No. 304530 of 2017

Class 1 Appeal against refusal of DA2017/0205 for the construction of five additional levels (31 apartments) to an approved mixed development under Development Consent DA2014/0183 (as modified)

Matter is listed for hearing on 29 & 30 May 2018. External town planner and traffic consultant briefed.

$19,468.76

8

6 The Crescent, Kingsgrove

 

Applicant: One Funds Management Ltd ATF Kingsgrove Property Trust

 

Proceedings No. 2017/309712

Class 1 Appeal against actual refusal of DA2017/0151 for construction of new off-street entry to premises along Vanessa Street, Kingsgrove.

Matter was listed for S34 Conference on 22 March 2018.  The s34 Conference has been part heard and adjourned for the provision of further information to Council.  The s34 Conference will resume on 4 April 2018.

$0

9

16 – 20 Tooronga Terrace, Beverly Hills

 

Applicant: Nicole Saoud

 

Proceedings No. 328848 of 2017

Class 1 appeal against refusal of DA 2016/0230 seeking development consent for retention of existing development fronting Tooronga Terrace, Beverly Hills and construction of a 3 storey building at rear for use as a boarding house of 15 rooms with parking at ground level

Matter is listed for S34 Conference on 30 April 2018. External town planner and traffic consultant briefed.

$4,290.00

10

70 Carwar Crescent, Carss Park

 

Applicant: Belinda Sun

 

Proceedings No. 335225 of 2017

Class 1 appeal against refusal of DA263/2016 for demolition of existing structure and construction of a new 2 storey attached dual occupancy with sub floor garage.

Matter is listed for S34 Conference on 1 May 2018.

$250.00

11

27 Newman Street, Mortdale

 

Applicant: Morgan Ng

 

Proceedings No. 343784/2017

 

Class 1 appeal against deemed refusal of DA2017/0121 for demolition of existing structure and construction of a new boarding house (12 rooms) and carport.

Matter listed for S34 Conference on 8 May 2018.

$0

12

849 King Georges Road, South Hurstville

 

Applicant: Urban Link Pty Limited

 

Proceedings No. 351493 of 2017

 

Class 1 Appeal against refusal of DA for demolition of existing structures and construction of a 4 storey flat building with 13 units and basement parking.

Matter is listed for S34 Conference on 16 May 2018.  External planner briefed.

$6,362.50

13

14 Wright Street, Hurstville

 

Applicant:

Prajna Monastery Australia Incorporated

 

Proceedings No. 2017/353101

Class 1 appeal against Council’s deemed refusal of DA 2017/0384 for demolition of an existing single storey dwelling and construction of a place of worship (Buddhist monastery).

Matter listed for hearing on 21 & 22 May 2018. External planning, traffic and noise consultants briefed.

$22,535.90

14

2 – 10 Woniora Road, Hurstville

 

Applicant:

Stellar Hurstville Pty Limited

 

Proceedings No. 2017/370324

Class 1 Appeal against deemed refusal of DA262/2016 for demolition of existing buildings and ancillary structures and construction of a new mixed use commercial residential building comprising three basement levels containing car parking and storage, ground floor commercial and basement parking and 12 residential apartment levels containing 112 apartments.

Matter has been listed for S34 Conference on 15 June 2018.

$7,161.80

15

2 – 4 Gladstone Street & 10 Victor Street, Kogarah

 

Applicant: Vortex Property Group

 

Proceedings No. 2017/377046

Class 1 appeal against Council’s deemed refusal of DA 2017/0519 for demolition of existing structures and construction of eleven (11) storey residential flat building containing thirty eight (38) units with basement car parking at 2 – 4 Gladstone Street and 10 Victor Street, Kogarah.

 

Matter has been listed for S34 Conference on 11 July 2018.  External traffic and urban design briefed.

$2,175.00

16

832 – 836 King Georges Road & 51 Connells Point Road, South Hurstville

 

Applicant:  Cash Warwick Pty Limited

 

Proceedings No. 2017/384934

Class 1 appeal against Council’s deemed refusal of modification application no. MOD2017/0169 seeking to modify development consent structures and construction of a part 5, part 7 storey residential flat building containing sixty seven (67) units to provide for internal reconfigurations and addition of a storey to building B at 832-836 King Georges Road and 51 Connells Point Road, South Hurstville.

 

Matter listed for S34 Conference on 25 June 2018.

$9,960.40

17

35 – 37 Empress Street, Hurstville

 

Applicant: Tribeca Property Developers Pty Limited

 

Proceedings No. 2017/385110

Class 1 appeal against Council’s deemed refusal of DA 2017/0496 lodged on 20 October 2017 for the demolition of existing structures and construction of a four (4) storey residential flat building comprising of fifteen (15) units with partially below ground basement car parking at 35 – 37 Empress Street, Hurstville.

 

Matter listed for S34 Conference on 29 May 2018.

$5,707.20

18

2D The Crescent, Kingsgrove

 

Applicant:  W & J Lee Property Investments Pty Limited

 

Proceedings No. 2018/9499

Class 1 appeal against Council’s refusal of DA 2016/0107 for the construction and operation of a Resource Recovery Facility at 2D The Crescent, Kingsgrove.

 

Matter listed for further directions hearing on 13 April 2018.

$9,907.12

19

5 – 9 John Street, Kogarah Bay

 

Applicant: Touma Property Developments

 

Proceedings No. 2018/38420

Class 1 appeal against Council’s deemed refusal of DA 2017/0663 for demolition of existing structures and construction of a six storey residential flat building with 44 units with associated 2 levels of basement parking.

 

Matter listed for S34 Conference on 30 July 2018.

$0

20

80 Penshurst Street, Penshurst

 

Applicant: 80 Penshurst St Pty Ltd ATF 80 Penshurst St Trust

 

Proceedings No. 2018/84104

Class 1 appeal against Council’s deemed refusal of Modification Application MOD2018/0007 to modify Development Consent 2016/0363 to add an additional unit on level 4, modifications that increase floor space to units on level 3, reduction of floor space for ground floor retail and addition of a substation.

Matter listed for first directions hearing on 17 April 2018.

$0

 

Subtotal

 

 

$225,155.38

Land and Environment Court Proceedings – Class 4 Proceedings

1

84D Roberts Avenue

MORTDALE

 

Parties:

 

Romanous Developments Pty Ltd

 

Proceedings No.

40883 of 2013

 

Court orders entered on 24 July 2015 for Class 4 proceedings requiring remediation works under supervision of independent site auditor.

Respondent sought variation to complete works the subject of DAs for Wall and Drainage Works (as defined) which were to be completed in December 2017.    Respondents have repeatedly failed to comply with timeframes within the orders.  Contempt proceedings to be commenced.

$3,983.00

2

117 Kyle Parade, Kyle Bay

 

Parties: Michael Stanley Lowe

 

Proceedings No. 127157 of 2017

 

Class 4 proceedings commenced (arising from Meet the Administrator community sessions) in relation to the long standing issue of the removal of a crane

Matter heard 16 and 17 October 2017.  Orders made for crane to be removed by 17 April 2018 and costs of $30,000 to be paid by 17 February 2018.  Costs received.  Awaiting removal of the crane.

$19,054.00

3

977 Forest Road, Lugarno

 

Parties: The Congregational Christian Church in Samoa, Parish of Sydney Incorporated and Taeipo Malifa

 

 

Proceedings No. 2018/23816

Proceedings commenced against Respondents for a declaration that the First and Second Respondents have each breached the Protection of the Environment Operations Act 1997 by failing to comply with prevention notices given to each of them under section 96 of that Act by Council.

 

Matter was listed for mediation on 21 March 2018.  Confidential agreement reached at mediation.  Mediation has been adjourned to 7 May 2018 to ascertain compliance.

$6,476.00

4

34 Milsop & 47 Jersey Avenue, Mortdale

 

Robert Stojanovski &

Steven Stojanovski

 

Proceedings No. 2018/99739

Proceedings commenced for unauthorised erection of structures and slabs, including habitation of structure at the premises.

Matter listed for first directions hearing on 4 May 2018.

 

 

Subtotal

 

 

$29,513.00

Supreme Court

1

296 Forest Road and Diment Way, Hurstville

 

Applicant: Telado Pty Limited

 

Proceedings No. 299079 of 2017

Applicant seeks s88K order for property rights in perpetuity over Council land known as Central Plaza.

Evidence filed.  Mediation formerly fixed for 6 April 2018 now vacated following successful motion by Council (opposed by Applicant). Applicant has lodged a s96 modification application to delete conditions requiring easements.  Hearing fixed for 25 and 26 June 2018.

$73,421.00

 

Subtotal

 

 

$73,421.00

District Court

1

Proceedings commenced by former employee for work injury damages

 

StateCover has issued a response to the Work Injury Damages Claim declining liability.  Statecover has served pre-filing defence.  Conciliation expected in April/May 2018 followed by a hearing.  Awaiting advice from StateCover.

$0 (StateCover funded)

 

Subtotal

 

 

$0

 

 

Local Court Proceedings

1

13-17 Peake Parade

PEAKHURST

 

Parties:

Oxford (NSW) Pty Ltd

Appeal against Penalty Notice for breaches of development consent. Defendant pleaded not guilty.

Defendant has been found guilty and judgment to be delivered on 25 May 2018.

$2,277.00

2-6

13-17 Peake Parade

PEAKHURST

 

Parties:

Oxford (NSW) Pty Ltd

Appeals against five Penalty Notices for breaches of development consent and one water pollution offence under POEO Act.

Defendant has been found guilty and judgment to be delivered on 25 May 2018.

$4,428.00

7-12

25 Koorabel, 25A Koorabel, 25B Koorabel Street

LUGARNO

 

Parties:

Daoud & Daoud Developments Pty Ltd

Appeals against Penalty Notices issued for carrying out development not in accordance with development consent.

Defendant found guilty of 2 offences of carrying out development without consent.  Judgment handed down on 16 March 2018 with penalty of $30,400 and costs of $12,000 (total $42,400) ordered.

$12,299.00

13

46 Queens Road, Connells Point

 

Parties:

Kosta Karkoulas

Appeal against Penalty Notice for unauthorised building works not in accordance with development consent.

Defendant entered guilty plea on 29 March 2018.  Court ordered a fine of $500 and prosecutor’s costs of $4,500.

$0

14

33 Robyn Street, Peakhurst Height and Gannons Park, Peakhurst Heights

 

Parties:

Hassan Abbas

Local Court prosecution for unlawful tree removal.

Defendant has pleaded not guilty.  Matter listed for hearing on 2 May 2018.

$0

15

8 Kimberley Road, Hurstville

 

Parties:

Petre Dimovski

Local Court prosecution for unlawful tree removal.

Defendant has pleaded not guilty. Matter listed for hearing on 8 May 2018.

$0

 

 

Subtotal

 

 

$19,004.00

NSW Civil & Administrative Tribunal

1

Briscoe-Hough v Tegg & Ors

Gregory Briscoe-Hough v Warren Tegg, Constantine Hindi, Lupco Konjarski, Gavin Tennant & Greg Copson

Applicant has commenced proceedings alleging, “seeking the voiding of the election held on 9 September 2017 for the Mortdale Ward of Council due to electoral irregularities perpetrated by the Electoral Commission being of a nature that these defects strike at the entire election”.

Council is not a party to the proceedings and maintains a watching brief only.

Matter heard on 15 February 2018.  Judgment delivered on 22 February 2018 dismissing the application.  The applicant lodged an appeal, which was set aside by NCAT.  Applicant has now lodged an application against the Electoral Commissioner.  The matter is listed for directions on 20 April 2018.  Council has watching brief only.

$0

 

Sub Total

 

 

$0

NSW Industrial Relations Commission

1

United Services Union and Georges River Council

Dispute has arisen around protocol for site visits and use of confidential information. 

Matter heard before Commissioner Newall on 11 December 2017.  Agreed protocol put in place.  At the mention on on 20 March 2018, it was noted that the parties have followed the protocol and recommendation that it remain in place.  Proceedings finalised.  Noted that a new USU organiser has been appointed to Council.

$0

Cost Recovery

1

The Baptist Church Union of NSW and The Baptist Churches of NSW Property Trust

 

No. 83357 of 2017

 

Church has taken proceedings to  prevent gazettal of the acquisition notice relating to 4 – 6 Dora Street, Hurstville

Council was successful in resisting the Church’s injunction.  Property acquired by Council on 31 March 2017.  Costs initially agreed however, the Church has now refused to pay Council’s costs.

Matter now with costs assessor.

$0

2

37 Boronia Street

KYLE BAY

 

Parties:

Mrs Megan McOnie

 

Proceedings No.

40940 of 2015

 

Class 4 commenced in relation to failing to comply with Council Notices/Orders relating to a non-compliant swimming pool fence, overgrown vegetation and unhealthy swimming pool water.

Court Orders in support of Council’s Notices/Orders made including costs.  Costs recovery to be commenced for outstanding rates, legal and compliance costs. 

$0

3

977 Forest Road, Lugarno

 

Applicant: Congregational Christian Church Samoa Parish of Sydney

 

Proceedings No: 103967 of 2017

Class 1 Appeal against refusal of DA2015/0443 for a child care centre

Council successful in obtaining costs order for $1,200 following applicant’s application being out of time.  Costs recovery action being undertaken as payment has not been made, following refusal by the church to pay.

$0

4

1 Arnold Street

PEAKHURST

 

Parties:

Mofeed Louis Tanious

 

Proceedings No.

2017/32320

 

Class 2 Land and Environment Court commencing in relation to failing to comply with Council Notices/Orders concerning keeping of poultry at the premises.  Orders upheld by Court with extension of time to comply to 25 April 2017.

Council was successful in resisting the applicant’s leave application to the Court of Appeal.  Summons dismissed with costs on 16 August 2017.  Applicant has commenced proceedings in the High Court.  Leave application dismissed by High Court on 16 November 2017.  Matter raised with Minister and Local Member.

$1,350.00

5

54 – 56 Johnstone Street, Peakhurst

 

Applicant: AMIA Investments Pty Ltd ATF MIAA Trust

 

Proceedings No:  206973 of 2017

 

Class 1 Appeal against deemed refusal of DA2017/0105 for demolition of existing structure, construction of 9 townhouses and strata title subdivision.

Following S34 Conference on 6 November 2017, applicant submitted amended plans for consideration.  Matter resolved through S34 Agreement and s97B costs in the amount of $13,000 now paid.  Matter finalised.

$22,425.00

6

70 – 76 Pitt Street, Mortdale

 

Applicant: D R Design (NSW) Pty Limited

 

Proceedings No. 273727 of 2017

Class 1 Appeal against deemed refusal of DA2017/0242 for demolition of existing structures, site amalgamation and the construction of a 3 storey residential flat building with basement car parking.

Matter was listed for S34 Conference on 18 January 2018. Matter is listed for further directions on 9 February 2018.  Awaiting payment of s97B costs in the amount of $4,500.

$0

7

5 Maclaurin Street, PENSHURST

 

Parties: Emanuel Mifsud & Crystina Mifsud

 

Proceedings No. 377447 of 2016

 

Class 4 commenced in relation to clearing of articles and matter.

Contempt proceedings heard on 26 July 2017 before her Honour Justice Pain.   Judgment delivered on 1 September 2017.  Mr Mifsud was fined $2,000 (to be paid by 29 September 2017) and fined $500 per week until the orders are complied with. Mr Mifsud was allowed until 24 November 2017 to clean up the property before the $500 per week fine would commence. Council was awarded costs.

Mr Mifsud has complied with orders to clean up the property. Costs recovery for all legal proceedings to be commenced.

$10,130.00

 

Subtotal

 

 

$42,779.00

 

21.     The cost savings to date by virtue of S34 delegations are as follows:

 

Month (2017/18)

Savings

July

$0

August

$32,000

September

$32,000

October

$0

November

$0

December

$16,000

January

$16,000

February

$32,000

March

$0

 Total

$128,000

 

Financial Implications

 

22.    Within budget allocation.

 

File Reference

09/1077

 

 

 

  


Georges River Council – Finance and Governance Standing Committee Meeting -  Monday, 9 April 2018              Page 16

Item:                   FIN018-18          Councillor Attendance and Professional Development 

Author:              Executive Assistant - General Manager

Directorate:      Office of the General Manager

Matter Type:     Committee Reports

 

 

 

Recommendation

That Councillors requiring additional professional development hours attend the workshop scheduled for 10 May 2018 “Ethics at Work”.

 

Executive Summary

1.   This report includes Councillor attendance data at the mandatory Councillor Induction sessions and notes that feedback from the Councillor Induction Program survey will be utilised to gauge requirements for the development of an ongoing professional development plan for Councillors.

Background

2.   In September 2016, the Executive Team endorsed the Councillor Induction Program for Councillors elected to the newly formed Georges River Council.

 

3.   The first (Extraordinary) meeting of Georges River Council, consisting of elected members, was held on 25 September 2017, where the Mayor and Deputy Mayor were elected for a two year and one year term respectively.  Council also determined the schedule of Council and Committee meetings.  The Councillor Induction Program commenced three days later, on 28 September 2017. 

 

4.   Attached to this report is a summary document detailing the record of attendance by Councillors at the induction sessions. 

5.   The feedback provided from the survey will assist in identifying areas where Councillors feel they require new or additional capabilities; and also to identify areas of the induction program that were addressed fully and were appropriately informative.

 

Financial Implications

6.   No budget impact for this report.

 

File Reference

D18/5322

 

 

 

ATTACHMENTS

Attachment 1

Councillor Induction Program Survey

Attachment 2

Councillor Induction Program and WS Briefing Attendance Log updated

 


Georges River Council - Finance and Governance Standing Committee Meeting - Monday, 9 April 2018

FIN018-18              Councillor Attendance and Professional Development

[Appendix 1]          Councillor Induction Program Survey

 

 

Page 17

 


 


 


 


 


 


 


Georges River Council - Finance and Governance Standing Committee Meeting - Monday, 9 April 2018

FIN018-18              Councillor Attendance and Professional Development

[Appendix 2]          Councillor Induction Program and WS Briefing Attendance Log updated

 

 

Page 24

 



Georges River Council – Finance and Governance Standing Committee Meeting -  Monday, 9 April 2018              Page 27

Item:                   FIN019-18          Audit, Risk and Improvement Committee Minutes from 30 October 2017 

Author:              Internal Auditor

Directorate:      Office of the General Manager

Matter Type:     Committee Reports

 

 

 

Recommendation

That the Minutes of the Audit, Risk and Improvement Committee for 30 October 2017, provided as an attachment to this report, be received and noted.

 

Executive Summary

1.   Council’s Audit, Risk and Improvement Committee (ARIC) Charter provides in Clause 5.1 for the periodic reporting of ARIC minutes to the Council. The Charter provides for a time interval in between the ARIC meeting and the reporting of its minutes. The ARIC met on 30 October 2017 and on 12 February 2018 for scheduled meetings.

 

2.   The Minutes of the October 2017 meeting were adopted at the February 2018 meeting and are now presented for Council’s information.

 

 

Background

3.      Council’s Audit, Risk and Improvement Committee (ARIC) Charter, adopted by Finance and Governance Committee on 13 November 2017, provides in Clause 5.1 for the periodic reporting of ARIC Minutes to the Council, in the following terms: 

“The Committee shall report back to Council within a six (6) months period following each meeting. Summary reports may be presented to the Council. The report shall provide Council with the following as appropriate and applicable:

- Minutes of each meeting

- All significant issues which can be reported without prejudice to the audit function.

 

This provision is to permit the implementation of Committee recommendations in a reasonable window of confidentiality, to optimise the effectiveness of Committee actions.”

 

4.      Significant issues considered by the 30 October 2017 meeting included;

·    AUD025-17 Draft Financial Reports for the period 12 May 2016 to 30 June 2017.

·    AUD029-17 Government and ICAC sourced Information - Operation Ricco – (former Botany Council) - response by Georges River Council.

·    AUD031-17 Fraud and Corruption Control Plan.

 

5.        The minutes of the Committee meeting held 30 October 2017 are now presented for the information of Council.

 

Financial Implications

6.      No budget impact for this report.

 

Community Engagement

N/A.

 

File Reference

17/831

 

 

 

ATTACHMENTS

Attachment 1

ARIC Committee Meeting Minutes - 30 October 2017 - 5-1-18

 


Georges River Council - Finance and Governance Standing Committee Meeting - Monday, 9 April 2018

FIN019-18              Audit, Risk and Improvement Committee Minutes from 30 October 2017

[Appendix 1]          ARIC Committee Meeting Minutes - 30 October 2017 - 5-1-18

 

 

Page 29

 


 


 


 


 


 


Georges River Council – Finance and Governance Standing Committee Meeting -  Monday, 9 April 2018              Page 35

Item:                   FIN020-18          Georges River Council Quarterly Property Portfolio Report 

Author:              Strategic Property Specialist

Directorate:      Office of the General Manager

Matter Type:     Committee Reports

 

 

 

Recommendation

That the quarterly Property Portfolio Report be received and noted.

 

 

Executive Summary

 

1.      At its meeting on 1 May 2017, Council resolved to report regularly on the commercial properties and other leases and licences.

2.      This report details Council’s performance of its property portfolio. The report includes information on Council’s Commercial Properties (Commercial Properties listed in Attachment 1), Community Properties (Community Properties listed in Attachment 2), Commercial Car Parking, Sporting Facilities and Footway Licences.

 

Background

 

3.      This report details Council’s performance of its property portfolio. The report includes information on Council’s Commercial Properties, Community Properties, Commercial Car Parking, Sporting Facilities and Footway Licences.

 

4.      There are currently zero (0) arrears on leases and licences.

5.      The report is an evolving document and responds to the ongoing audit of Council’s leases and licences. It is expected that in the future the report will include the net position for each of the property groups after costs and expenses.

 


 

 

6.      Commercial Property

Property Address

No. of Current Leases

No. of Vacant Premises

% Vacant Premises

Monthly Rent       (incl. GST)

Annual Rent – Estimated (incl. GST)

Comment

Commercial Office Building - 34 MacMahon Street, Hurstville – (Hurstville House)

23

1

4%

$107,266

$1,287,192

Offer accepted on remaining vacant suite. Rental per annum (inc GST) = $35,750

Commercial Office Building - 38 Humphreys Lane, Hurstville

2

1

33%

$55,106

$661,272.00

14 sqm vacancy - Currently advertised for lease through Council's Managing Agent

Other Leases

 

 

 

 

 

 

Commercial

17

NIL

0% 

$93,048

$1,116,576

Retail

4

NIL

0%

$19,025

$228,300

Telecommunications

2

N/A

 

$3,766

$45,192

Footway Licences

TBA (audit underway)

 

 

 

 

Policy to be finalised and data included in next report

Kogarah Civic Centre Building - 2 Belgrave Street Kogarah

2

1

 

$16,700

$200,400

Offer accepted on remaining vacant suite. Rental per annum (inc GST) = $66,000

Total

50

3

6%

$294,911

$3,538,932

 

 

 

 

 

 

 

 

 

 

 

 

 

7.      Sporting Facilities

Property

No. of Current Agreements

Hirer or Club

Agreement

Monthly Revenue   (excl. GST)

Annual Revenue    (excl. GST)

Comment

Golf Courses

 

 

 

 

 

$38,000 pa Golf Course Rental + $24,367 pa Club House Rental
NB: recent 50% subsidy granted for course rent.

Beverley Park Golf Course

1

Beverley Park Golf Club Ltd

Lease
Beverley Park Golf Club Ltd

$5,197

$62,367

 

 

 

 

 

 

Hurstville Golf Course

2

Hurstville Golf Club

Bluefit Management Agreement

$46,892

$562,704

Revenue includes contribution to utilities and maintenance. Not a NET figure

Hurstville Golf Club (MoU)

$2,486

$29,832

Swimming Pools/Aquatic

 

 

 

 

 

Revenue includes contribution to utilities and maintenance. Not a NET figure.

HALC

1

NA

Bluefit Management Agreement

$146,274

$1,755,288

Sans Souci

1

NA

Lease
Hinarni Pty Ltd

$8,800

$105,600

Lease option negotiation finalised.
Asset Management Plan required.

Kogarah War Memorial Pool

Nil

Council

Nil

-$17,830

-$213,960

Operation assisted by Bluefit staffing secondment.

Tennis Courts

 

 

 

 

 

Term from September 2016 to September 2019

Ken Rosewell

1

NA

Management Agreement
Evolution Tennis

$5,833

$70,000

Parkside Drive

1

NA

Lease
Graeme Wardrop

$2,817

$33,800

Term from June 2016 to June 2021 with a 5 year option.

 

Jubilee Oval

 

 

 

 

 

Revenue includes on-costs for matches

St George NRL Club

1

St George NRL Club

Hire Agreement

-

$410,000

St George District Football Club

1

St George District Football Club

Lease includes use of venue for fixtures

-

$71,500

Hurstville Oval

 

 

 

 

 

6 month seasonal arrangement - October to March

St George District Cricket Club

1

St George District Cricket Club

Licence

-

$1,576

Total

10

 

 

$200,469

$2,888,707

 

 

 

8.      Commercial Car Parking

Car Park

No. Permanent Parking

No. of Public Parking Spaces

Management Agreement

Monthly Revenue       (incl. GST)

Annual Revenue Estimate (incl. GST)

Comment

Waratah Hospital Car Park

-

150

Secure Parking

$4,949

$59,388

$265,000 Strata Fees

31 Dora St Hurstville

(Average)

Annual subsidy of $205,612 per annum

 

 

 

Kogarah Town Square Car Park

4

224

APARC

$35,688

$428,256

Annual Strata Fees of $94,509

6 Derby St Kogarah

TDN

Empress/Woniora Gardens Car Park

5

100

APARC

$10,290

$123,482

Annual Strata Fees  of

$2,756

588-604 Railway Pde Hurstville

TDN

ATO spaces
12-22 Woniora Road, Hurstville

-

79

Council as Lessee

-

$300,000

$300,000 for the first year followed by a prorated amount for each month thereafter until handover of stratum title to Council

Total

9

553

 

$50,927

$911,126

 

 

9.      Community Leases

Community Leases

No. of Properties

Vacancies

% Vacant Premises

Annual Rent

NOTE

(excl. GST)

Scouts & Girl Guides

10

NIL

0%

$63

 

Community Centres

6

NIL

0%

 

 

1. Jubilee (Mortdale)

 

 

 

$63,000

Nil income due to 100% Council reimbursement of annual rent

2. Kingsgrove

 

 

 

$54,798

Nil income due to 100% Council reimbursement of annual rent

3. Kogarah

 

 

 

$10,920

 

4. Riverwood

 

 

 

TBC

Rental and subsidy to be assessed in line with Policy.

5 Pole Depot (Penshurst)

 

 

 

$1

Subsidised rental due to extensive capital investment by tenant.

6. Youth Outreach Kogarah

 

 

 

$1,000

 

Community Sports

3

NIL

0%

$19,362

 

St George Business Chamber of Commerce

1

NIL

0%

-

$22,000 annual office rental subsidy plus $30,000 per annum over 5 years Council cash contribution to assist with program development

Radio 2NBC

1

NIL

0%

$1

$1 income to Council as per Council Resolution

Hurstville District Small Bore Rifle Club

1

NIL

0%

$1

 

Misc. Others

9

NIL

0%

$2,047

Total

31

0

0%

$151,193

 

 

 

 

Financial Implications

10.    No budget impact for this report.

 

File Reference

17/2939

 

 

 

ATTACHMENTS

Attachment 1

Commercial Properties

Attachment 2

Community Properties

 


Georges River Council - Finance and Governance Standing Committee Meeting - Monday, 9 April 2018

FIN020-18              Georges River Council Quarterly Property Portfolio Report

[Appendix 1]          Commercial Properties

 

 

Page 41

 


Georges River Council - Finance and Governance Standing Committee Meeting - Monday, 9 April 2018

FIN020-18              Georges River Council Quarterly Property Portfolio Report

[Appendix 2]          Community Properties

 

 

Page 42

 


Georges River Council – Finance and Governance Standing Committee Meeting -  Monday, 9 April 2018              Page 43

Item:                   FIN021-18          Investment Report as at 28 February 2018 

Author:              Financial  Accounting Officer

Directorate:      Office of the Chief Operating Officer

Matter Type:     Committee Reports

 

 

 

Recommendation

That the Investment Report as at 28 February 2018, be received and noted.

 

Executive Summary

1.   This report details Council’s performance of its investment portfolio as at February 2018 and compares it against key benchmarks.  The report includes the estimated market valuation of Council’s investment portfolio, loan liabilities and an update on Council’s legal action against various parties.

2.    Council’s annualised rate of return is 3.14%, which is 1.39% above benchmark. Income from interest on investments totals $3,455,554 which is $179,832 above 2017/18 year-to-date adopted budget of $3,275,722.

 

Background

3.   Council’s Responsible Accounting Officer is required to report monthly on Council’s Investment Portfolio and certify that the Investments are held in accordance with Council’s Investment Policy and Section 625 of the Local Government Act.

Investment Performance Commentary

4.   Council’s performance against the benchmark for returns of its investment portfolio for February 2018, are as follows:

 

 

1 Month

3 Month

12 Month

Portfolio Performance

0.21%

0.71%

3.14%

Performance Index

0.13%

0.43%

1.75%

Excess

0.08%

0.28%

1.39%

Notes:                                                      

1.      Portfolio performance is the rate of return of the portfolio over the specified period.

2.      The Performance Index is the rate of return of the market (comparable securities) over the specified period.                                    

3.      Excess performance is the rate of return of the portfolio in excess of the Performance Index.

 

 

 

5.   Council’s investment portfolio as at the end of  February was as follows:

Security Type

Market Value $000's

% Total
Value

Cash at Bank

16,429

8.27%

11am Cash

 8,992

4.53%

31 Day Notice Account

 22

0.01%

Flexi Deposit (Fix/Float)

 5,016

2.52%

Floating Rate Deposit

 5,005

2.52%

Floating Rate Note

 66,150

33.30%

Floating Rate TCD

 3,537

1.78%

Term Deposit

 87,527

44.06%

Managed Funds Trust

 5,997

3.02%

Total Cash and Investments

 198,675

100.00%

 

6.   At the end of January 2018, Total Cash and Investments were $192.43M and have increased by $6.25M at end of February 2018 as a result of investment maturities and rates revenue.

 

7.   Council continues to utilise the Federal Government’s current guarantee ($250k) investing in Term Deposits with a range of Authorised Deposit Taking Institutions (ADI’s) on short to medium term investments (generally 30 days to 180 days maturity) where more competitive rates are available.

 

Legal Issues

8.   Nil.

 

Loan Liability

9.   Council’s loan liability as at 28 February was $2.375m which represents the balance of a $5m ten (10) year loan drawn down on 16 November 2012 for Jubilee Park upgrade in Mortdale. Next repayment of $125k is due 28 March 2018.

The outstanding balance on this facility is at a variable interest of 194 basis points over three month BBSW. At the current three month BBSW rate, the interest rate payable is 3.71% pa.

10. Council receives a 4% p.a. subsidy under the NSW Government’s Local Infrastructure Renewal Scheme funding agreement for this Jubilee Park upgrade facility. It is intended to continue this financially-advantageous arrangement through to full term in 2022.

Policy Limits

11. The following graph shows the limits, as a percentage of total cash investments, of the amount by periods, as allowed under Council’s policy, and comparing them to the amounts actually invested, as a percentage of the total cash investments.

12. It shows that the funds invested are within the limits set in the Investment Policy.

 

 

Investment Income

13.    Income from interest on investments approximate totals $3.46M which is $180k above 2017/18 year-to-date adopted budget of $3.28M.

Certificate by Chief Operating Officer (Responsible Accounting Officer): David Tuxford

14.    Investments have been made in accordance with the Local Government Act, Minister’s Guidelines, Regulations and Council’s Investment Policy.

 

Analysis of Investments

 

Investment Duration

Investment Term

Market Value ‘000

% Total Value

Policy Limits

0 to < Year

62,437

31.43%

100%

1 to < 3 Years

104,278

52.43%

70%

3 to < 5 Years

29,959

15.08%

50%

> 5 Years

2,000

1.01%

25%

Portfolio Total

198,675

100.00%

 

 

15.  Council’s portfolio is liquid, with 31.43% of assets maturing within 12 months. FRNs, funds and fixed bonds also provide additional liquidity in an emergency.

 

 


 

16.    The following graphs show analysis of the total cash investment by:

Type of Investments

 

17.    Council’s investment portfolio is mainly directed to fixed term deposits, which account for approximately 47% of total investments. Yields have steadily contracted, while tracking bond market volatility in the short term.

18.    Bank Floating Rate Notes (FRN) offer liquidity and a higher rate of income accrual, which is highly recommended by our Investment Advisors (CPG Research & Advisory) going forward.

19.    The following are the types of investments held by Council:

a)      Cash & Call Accounts refer to funds held at a financial institution and can be recalled by Council either same day or on an overnight basis.

b)      A Floating Rate Note (FRN) is a debt security issued by a company with a variable interest rate. This can either be issued as Certificates of Deposit (CD) or as Medium Term Notes (MTN). The interest rate can be either fixed or floating, where the adjustments to the interest rate are usually made quarterly and are tied to a certain money market index such as the Bank Bill Swap Rate.

c)      A Fixed Term Deposit is a debt security issued by a company with a fixed interest rate over the term of the deposit.

d)      A managed fund is a professionally managed investment portfolio that individual investors can buy into, purchasing 'units' rather than shares. Each managed fund has a specific investment objective. This is usually based around the different asset classes (cash, fixed interest, property and shares). The money you invest is used to buy assets in line with this investment objective. When you invest in a managed fund, you are allocated a number of 'units'. The value of your units is calculated on a daily basis and changes as the market value of the assets in the fund rises and falls.

         

* These managed funds have been grandfathered since the NSW State Government changed the list of Approved Investments as a result of the Cole enquiry (which was reflected in the Ministerial Order dated 31/7/2008).

 

 

Credit Rating

20.    Credit ratings are generally a statement as to an institution’s credit quality. Ratings ranging from A1+ to NR (Short Term) & AAA to NR (long term) are considered investment grade.

21.    A general guide as to the meaning of each credit rating that Council deals with is as follows:

Short-term

A1+: the best quality companies, reliable and stable. An obligor has extremely strong capacity to meet its financial commitments.

A1:    Adequate capacity to meet financial commitments, many positive investments attributes but also elements susceptible to adverse effects of changes in economic conditions.

A2:    Adequate capacity to meet financial commitments, but also speculative or lack of protection against changes of economic conditions.

B1:    Moderate characteristic capacity to meet financial commitments, also in good economic conditions.

Unrated:    This category includes unrated Authorised Deposit-Taking Institutions (ADI’s) such as some Credit Unions and Building Societies to the extent not Commonwealth-guaranteed. No rating has been requested, or there is insufficient information on which to base a rating.    

Long-term

AAA: the best quality companies, reliable and stable. An obligor has extremely strong capacity to meet its financial commitments.

AA:   quality companies, a bit higher risk than AAA. An obligor has very strong capacity to meet its financial commitments. It differs from the highest-rated obligors only to a small degree.

A:      economic situation can affect finance. An obligor has strong capacity to meet its financial commitments but is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligors in higher-rated categories.

BBB: medium class companies, which are satisfactory at the moment. An obligor has adequate capacity to meet its financial commitments. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitments.

Unrated:  This category includes unrated Authorised Deposit-Taking Institutions (ADI’s) such as some Credit Unions and Building Societies to the extent not Commonwealth-guaranteed. No rating has been requested, or there is insufficient information on which to base a rating.

22.    The credit quality of Council’s portfolio is relatively high with approximately 67% of assets rated ‘A’ or higher. The ‘AAA’ assets represent the deposit investments covered by the Federal Government’s Financial Claims Scheme (FCS).

23.    The remaining 33% rated ‘BBB’ or ‘unrated’ reflects the deposit and Floating Rate Notes (FRN) investments with the regional and unrated ADIs.

Council’s Investment Powers

24.    Council’s investment powers are regulated by Section 625 of the Local Government Act, which states:

·    A council may invest money that is not, for the time being, required by the council for any other purpose.

·    Money may be invested only in a form of investment notified by order of the Minister published in the Gazette.

·    An order of the Minister notifying a form of investment for the purposes of this section must not be made without the approval of the Treasurer.

·    The acquisition, in accordance with section 358, of a controlling interest in a corporation or an entity within the meaning of that section is not an investment for the purposes of this section.

25.    Council’s investment policy and strategy requires that all investments are to be made in accordance with:

·    Local Government Act 1993 - Section 625

·    Local Government Act 1993 - Order (of the Minister) dated 12 January 2011

·    The Trustee Amendment (Discretionary Investments) Act 1997 – Sections 14A (2), 14C (1) & (2)

·    Local Government (Financial Management) Regulation 1993

·    Investment Guidelines issued by the Department of Local Government

 

Financial Implications

26.    Within budget allocation

 

File Reference

D18/57228

 

 

 

ATTACHMENTS

Attachment 1

Investment Portfolio as at 28 February 2018

 


Georges River Council - Finance and Governance Standing Committee Meeting - Monday, 9 April 2018

FIN021-18              Investment Report as at 28 February 2018

[Appendix 1]          Investment Portfolio as at 28 February 2018

 

 

Page 49

 


 


 


 


 


 


 


 


 


Georges River Council – Finance and Governance Standing Committee Meeting -  Monday, 9 April 2018              Page 58

Item:                   FIN022-18          The Second International Workshop on Eco-shoreline Designs for Sustainable Coastal Development 

Author:              Manager Project Delivery

Directorate:      Assets and Infrastructure

Matter Type:     Committee Reports

 

 

 

Recommendation

That Mr Thomas Heath (Environmental and Open Space Projects Officer) be authorised to attend and present to The Second International Workshop on Eco-shoreline Designs for Sustainable Coastal Development in Hong Kong in May 2018.

 

 

Executive Summary

1.   This report is presented to seek approval for Mr Thomas Heath (Environmental and Open Space Projects Officer) to attend and present to The Second International Workshop on Eco-shoreline Designs for Sustainable Coastal Development in Hong Kong in May 2018.

 

Background

2.   This Second Eco-shoreline Workshop is jointly organised by the Swire Institute of Marine Science and School of Biological Sciences of HKU, the World Harbour Project, the Hong Kong Institution of Engineers (HKIE) and the Hong Kong Institute of Qualified Environmental Professionals (HKIQEP) with support from the Civil Engineering and Development Department (CEDD) and Agriculture Fisheries and Conservation Department of the Hong Kong Special Administrative Government.

 

3.   The Workshop will provide a platform for international experts to update their advancements in eco-shoreline designs and share their expertise and knowledge with participants.

 

4.   As part of the 2018 Workshop, Mr Thomas Heath (Environmental and Open Space Projects Officer) has been requested to attend and present the following paper “Georges River Foreshore Eco-engineering: A Case Study”. 

 

5.   Outlined below is the abstract from Mr Heath’s paper”

 

“The complexity of marine and estuarine eco-engineering projects has increased as the understanding of their role in the environment and construction systems have improved. From basic ‘rip-rap’ rubble foreshores to broad scale naturalisation projects that re-establish tidal ingress, the replacement or enhancement of vertical seawalls is a focal point of coastal zone management.

 

Georges River Council is a leader in the design and construction of environmentally friendly seawalls focusing on the improvement of estuarine intertidal habitats along the Georges River, NSW, Australia. This is the culmination of ongoing research and development into seawall construction and the intent to increase foreshore habitat through innovative design. To date, Council has enhanced the habitat of approximately 1.1 km of foreshore, with an additional 600m of foreshore to be naturalised by the end of 2018.

 

The development of estuarine ecosystems have facilitated partnerships between Georges River Council, research bodies, State and Federal Government agencies, and the broader community, promoting environmental protection, and naturalisation of reclaimed land. These projects highlight the capacity to develop new habitat zones and re-connect fragmented landscapes.

 

6.   As a presenter at the Conference, all registration, air fares and accommodation is paid for by the Conference convenors.  At present, there is no formal policy on staff attending overseas conferences.

 

7.   If approved, Mr Heath will receive the sustenance allowance in accordance with the current policy.

 

Financial Implications

8.      No budget impact for this report.

 

Community Engagement

9.      Community engagement is not applicable to this report.

 

File Reference

17/595

 

 

 

  


Georges River Council – Finance and Governance Standing Committee Meeting -  Monday, 9 April 2018              Page 60

Item:                   FIN024-18          Quarterly Budget Review for Quarter Ending 31 December 2017 

Author:              Acting Chief Financial Officer

Directorate:      Office of the Chief Operating Officer

Matter Type:     Committee Reports

 

 

 

Recommendation

(a)  That the report Quarterly Budget Review for the Quarter Ending December, be received and noted.

(b) That the proposed budget variations as detailed in the report, be approved.

 

Executive Summary

1.       This report is a review of the second quarter's financial performance against the 2017-18 current budgets and recommends approval of proposed budget variations in line with the revised projected year end result.

2.       In accordance with Clause 203(2) of the Local Government (General) Regulations 2005, it is my opinion that the Quarterly Budget Review Statement for Georges River Council for the quarter ended 31/12/2017 indicates that Council’s projected financial position at 30/6/18 will be satisfactory at year end, having regard to the projected estimates of income and expenditure and the original budgeted income and expenditure.

Background

3.       Clause 203 of the Local Government (General) Regulation 2005 requires that a quarterly budget review be considered by Council that shows current estimates for income and expenditure for the year, indicates whether Council’s financial position is satisfactory and makes recommendations for remedial action, if required.

4.       Quarterly Budget Review Statements, attached to this report, provide a comprehensive high level review of Council’s financial position as at 31 December 2017, in accordance with requirements developed by the Office of Local Government (OLG) that assist councils in meeting their obligations as set out in legislation.

5.       A review of Council’s budget up to 31 December 2017 has identified some proposed variations to existing budgets based on updated budget forecasts for the financial year 2017/18.

6.       Tables containing the details of the proposed budget variations and their effect on the projected year end result are attached to this report.  

Financial Comment

Income and Expenditure Statement

7.       Following this quarter’s budget review, Council’s financial position is revised to have a net decrease of $89,000 in Council’s operating surplus. The revised operating surplus for the quarter ending 31 December 2017 is $14.17m.

8.       The variation is a result of a $202,000 increase in income and a $291,000 increase in expenditure, which resulted in a net result of $89,000 decrease in operating surplus.

9.       Material variations to Council’s income included:

a.   An increase of $517,000 to operating grants & contribution

b.   A decrease of $270,000 to the capital grants & contribution

c.   Additional rates income of $70,000

d.   A decrease in user charges & fees of $53,000

e.   A reduction of $62,000 in community parks income and DA imaging.

10.     Material variations to Council’s expenditure included:

a.   An increase of $40,000 in other employee costs

b.   An increase of $62,000 in materials & contracts

c.   An increase of $189,000 in relation other expenses.

d.   An increase of $180,770 before depreciation and capital grants and contributions.

11.     Quarterly Budget Review ending 30 March 2018 (Q3) will provide a strong projection of the year end results. Note this will include the lower than budgeted cost of the 2017 Election. The total costs have been invoiced at $619,510 (excl. GST) and $800,000 was budgeted in the 17/18 Council adopted budget.

12.     Table 1 and 1(a) in the appendix provides notes on each variance.

Capital Budget

13.     The capital works program at the quarter ending 31 December 2017 had year to date (YTD) expenditure of $11.86m and $12.6m funds committed.

14.     Capital grants and contributions income is projected to decrease by $270,000, which is 1.2 percent of the budgeted income for capital grants and contributions and 0.2 percent of total income, an immaterial impact overall.

15.     The Council adopted 2017/18 capital works program of $48.06m, now includes a budget carryover from 2016/17 and 30 September 2017 quarter variations of $20.30m, totaling a revised capital budget of $68.36m.

16.     Proposed variations for the quarter ending 31 December 2017 include:

a.   A decrease in net capital expenditure by $7.25m to $61.11m (-10.6%), which can be attributed to the Penshurst Park Sporting Hub Project with approval for Stages 2 and 3 pending.

17.     The proposed variation in forecasted capital expenditure does not have a significant impact on the unrestricted working capital as the majority of identified capital projects are externally funded.

18.     Table 2 of the appendix provides movements of the capital budget.

Unrestricted Working Capital (Cash Balance)

19.     Council’s cash deficit has increased by $118,000 from $5.407m to $5.525m. The decrease has resulted from a forecasted reduction in budgeted income and minor adjustment to operating expenditure.

GRC Events – Lunar New Year

20.     The Lunar New Year Festival generated $91,909 in cash income from Stallholders, Sponsors and rides. In-kind sponsorship provided an additional $18,500 in value. A new income stream was created this year with the sale of $5 wristbands for unlimited access to amusement rides, to partially meet the additional costs of the event

21.     Prior to the Major Events Advisory Committee’s formation and direction, Council had originally anticipated an expenditure of $120,000 with an income of $66,000 for the Lunar New Year Festival, therefore a net cost of $54,000.

22.     The actual total cost of the revitalised and expanded event is $198,891, with actual income of $94,909. This results in a net cost of $103,982 which is $49,982 above the original budgeted net cost of this event.

23.     The over expenditure of $49,982 will be funded within Council’s overall Events budget due to savings in other events during 2017/18.

 

File Reference

17/2686

 

 

 

ATTACHMENTS

Attachment 1

Georges River Council Quarterly Budget Review for Quarter Ending 31 December 2017

 


Georges River Council - Finance and Governance Standing Committee Meeting - Monday, 9 April 2018

FIN024-18              Quarterly Budget Review for Quarter Ending 31 December 2017

[Appendix 1]          Georges River Council Quarterly Budget Review for Quarter Ending 31 December 2017

 

 

Page 63