AGENDA


Finance and Governance Committee

 

Monday, 10 February 2020

6.00pm

 

Level 1, Georges River Civic Centre

Hurstville

 

 

 

 

 

 

 

 

 

 

 


Georges River Council – Finance and Governance Committee -  Monday, 10 February 2020                                     Page 2

 

          Finance and Governance Committee

ORDER OF BUSINESS

 

1.      Opening

2.      Acknowledgement of Country

3.      Apologies / Leave of Absence

4.      Notice of Webcasting

5.      Disclosures of Interest

6.      Public Forum

7.      Confirmation of Minutes of Previous Meeting  

MINUTES: Finance and Governance Committee – 9 December 2019

8.      Committee Reports

FIN001-20         Investment Report as at 30 November 2019

(Report by Senior Financial Accountant - Reporting)............................................. 3

FIN002-20         Investment Report as at 31 December 2019

(Report by Senior Financial Accountant - Reporting)........................................... 19

FIN003-20         Adoption of Draft Public Interest Disclosure Reporting Policy 2020

(Report by Manager Governance and Risk)........................................................... 34

FIN004-20         Report on Outstanding Council Resolutions for the period 01 October 2019 - 31 December 2019

(Report by Manager, Office of the General Manager)........................................... 58

FIN005-20         Property Matter - Proposed Dedication of Land as Public Road - 75 Louis Terrace, Hurstville

(Report by Strategic Property Specialist)................................................................. 94

FIN006-20         Property Matter - 50 Lillian Road, Riverwood (Lillian Road Reserve) - Grant of Easement to Drain Water for Benefit of Adjoining Property

(Report by Strategic Property Specialist)............................................................... 109  

 

 


Georges River Council – Finance and Governance Committee -  Monday, 10 February 2020                                     Page 3

Committee Reports

Item:                   FIN001-20                    Investment Report as at 30 November 2019 

Author:              Senior Financial Accountant - Reporting

Directorate:      Business and Corporate Services

Matter Type:     Committee Reports

 

Recommendation:

That Council receives and notes the contents of the Investment Report as at 30 November 2019.

 

 

Executive Summary

1.      This report details Council’s performance of its investment portfolio as at 30 November 2019, and compares it against key benchmarks.

2.      This report also includes the estimated market valuation of Council’s investment portfolio, loan liabilities and any required update on Council’s legal action against various parties.

3.      Council’s annualised rate of return is 2.48% which is 0.90% above benchmark. Income from interest on investments totals $1.5m which is $196k more than the 2019/2020 year-to-date adopted budget.

Background

4.      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 (NSW) 1993.

Investment Performance Commentary

5.      Council’s performance against the benchmark for returns of its investment portfolio for November 2019, are as follows:

 

1 Month

3 Month

12 Month

Portfolio Performance

0.16%

0.44%

2.48%

Performance Index

0.08%

0.25%

1.58%

Excess

0.08%

0.19%

0.90%

Notes:                                                      

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

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

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

6.      Council’s investment portfolio as at the end of November 2019 was as follows:

Security Type

Market Value $000's

% Total Value

At Call Deposit

1,437

0.84%

31 Day Notice Account

3,046

1.77%

Consolidated Cash Fund

16,467

9.58%

Covered Floating Bond

1,010

0.59%

Flexi Deposit (Fix/Float)

6,000

3.49%

Floating Rate Deposit

5,000

2.91%

Floating Rate Note

54,141

31.49%

Term Deposit

78,541

45.68%

Managed Funds Trust

6,301

3.66%

Total Cash and Investments

171,943

100.00%

 

7.      At the end of October 2019, Total Cash and Investments were $166m and have increased by $6m at the end of November 2019.

8.      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).

Legal Matters

9.      Georges River Council is participating in a Group Class Action against Fitch Ratings Inc., in respect of losses suffered on the Corsair (Cayman Islands) No.4 Ltd Series 6 Kakadu Collateralised Debt Obligation (CDO) notes. Council suffered a capital loss of $214,812 on these investments dating back to December 2006, and will seek damages of the capital loss including lost interest as part of the action. There is no update on this matter, in terms of an outcome as at 30 November 2019.

Borrowings

10.    Council’s loan liability, as at 30 November 2019 was $1.5m, which represents the balance of a $5m/10 year loan drawn down on 16 November 2012 for the Jubilee Park upgrade in Mortdale. The next repayment of $125,000 is due on 23 December 2019.

11.    The outstanding balance on this facility is at a variable interest rate of 194 basis points above the three month BBSW. At the current three month BBSW rate, the interest rate payable is 2.85% pa.

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


 

Policy Limits

 

13.    The graph below shows the Investment Rating limits, as a percentage of total cash investments, which are allowed under Council’s Investment policy. It also compares them to the amounts actually invested, as a percentage of the total cash investments. It shows that the funds invested are within the limits set in the Investment Policy.

 

Investment Income

14.    Income from interest on investments to 30 November 2019 is $1.5m, which is $196k more than the 2019/2020 year-to-date adopted budget.

15.    Investments have been made in accordance with the Local Government Act (1993), 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 < 1 Year

90,628

52.71%

100%

1 to < 3 Years

71,809

41.76%

70%

3 to < 5 Years

9,506

5.53%

50%

Portfolio Total

171,943

100.00%

 

 

16.    Council’s portfolio is liquid, with 52.71% of assets maturing within 12 months. FRNs, At-Call Funds and Fixed Bonds also provide additional liquidity in an emergency.

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

 

 

 

 

Type of Investments

 

18.    The majority of Council’s investment portfolio is made up of fixed term deposits, which account for approximately 46% of total investments.

19.    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).

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

a)      Cash and 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)      An 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

21.    Credit ratings are generally a statement as to an institution’s credit quality. Council’s Investment Advisors (CPG Research & Advisory) use Standard & Poor’s Credit ratings to classify the investments held by Council. Ratings ranging from AA to BBB (Short Term) & AA to BBB (long term) are considered investment grade.

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

Short-term

AA:            The best quality companies, reliable and stable. An obligor’s capacity to meet its financial commitments on the obligation is very strong.

A:               The obligor’s capacity to meet its financial commitments on the obligation is still strong but is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions.

BBB:          Adequate capacity to meet financial commitments, but adverse economic conditions or changing circumstances are more likely to weaken the obligor’s capacity 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.         

Long-term

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.

 

23.    The credit quality of Council’s portfolio is relatively high with approximately 77% of assets rated ‘A’ or higher. The ‘AAA’ assets represent the deposit investments covered by the Federal Government’s Financial Claims Scheme (FCS).

24.    The remaining 23% rated ‘BBB’ or ‘unrated’ reflects the deposit and FRN investments with the regional and unrated ADIs.

 

 

 

Update on AMP Bank Downgraded to BBB+

25.    On 27 August 2019, S&P Global Ratings lowered its global ratings for AMP Limited and its subsidiaries from “A-“ to “BBB+” in response to AMP Group revealing plans to sell its life insurance business unit to Britain’s Resolution Life in early August 2019. S&P Global believes the sale of the insurance unit means AMP’s earnings reliance on its wealth and investment management operations as well as its small domestic banking unit will materially weaken the group’s credit profile and lower its future diversification. As at 31 August 2019, Council had approximately $14m invested with AMP Bank.

26.    In-line with Council’s current practice of only dealing with institutions who have  investments that are globally rated A and above, Council has commenced progressively reinvesting the AMP Term Deposit and At Call Account funds with institutions with the appropriate global rating.

27.    As at 30 November 2019, Council has reduced its investments with AMP to $7m, as follows:

Investment Type

Market Value ‘000

At Call Accounts

3,048

Floating Rate Notes (FRN)

3,994

Total Cash and Investment with AMP

7,042

 

28.    On 2 December 2019, Council transferred the remaining $3m of the AMP At Call Investments to the Commonwealth Bank of Australia. Council has also provided formal instructions to close all the At Call Accounts with AMP in December 2019.

29.    The FRN’s will mature between May 2021 and March 2022 and at this stage, due to the current investment interest rates that are being offered and the advice received from CPG Research & Advisory, no change will occur until maturity. This, however, will be monitored on a monthly basis.  

 

Council’s Investment Powers

 

30.    Council’s investment powers are regulated by Section 625 of the NSW Local Government Act (1993), 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.

31.    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

32.    Income from interest on investments totals $1.5m, which is $196k more than the 2019/20 year-to-date adopted budget.

 

33.    The Reserve Bank of Australia (RBA) left the official cash rate at 0.75% in November 2019. The RBA is now targeting the goal of reaching “full employment” rather than simply reducing the unemployment rate. In order to achieve full employment, it is likely to expect an “extended period” of low interest rates. 

 

Risk Implications

34.    Enterprise risk/s identified and management process applied.

35.    Council’s enterprise risk identified was ‘poor financial management adversely impacts Council’s long term financial sustainability’. The risk has been managed by Council’s management of investments in accordance with the relevant act and regulations, along with Council adopted Investment Policy. To further minimise the risk, Council will progressively move towards the placement of investments only in investments rated A or above.

Community Engagement

36.    No community consultation is required as a result of this report. Members of the community are able to attend and address Council at the Council meeting in relation to this matter in accordance with Council’s Code of Meeting Practice.

 

File Reference

D19/297703

 

 

ATTACHMENTS

Attachment 1

Investment Report as at 30 November 2019

 


Georges River Council -         Finance and Governance Committee - Monday, 10 February 2020

FIN001-20              Investment Report as at 30 November 2019

[Appendix 1]          Investment Report as at 30 November 2019

 

 

Page 12

 


 


 


 



Georges River Council – Finance and Governance Committee -  Monday, 10 February 2020                                     Page 19

Item:                   FIN002-20                    Investment Report as at 31 December 2019 

Author:              Senior Financial Accountant - Reporting

Directorate:      Business and Corporate Services

Matter Type:     Committee Reports

 

 

Recommendation:

That Council receives and notes the contents of the Investment Report as at 31 December 2019.

 

 

Executive Summary

1.      This report details Council’s performance of its investment portfolio as at 31 December 2019, and compares it against key benchmarks.

2.      This report also includes the estimated market valuation of Council’s investment portfolio, loan liabilities and any required update on Council’s legal action against various parties.

3.      Council’s annualised rate of return is 2.43% which is 0.93% above benchmark. Income from interest on investments totals $1.6m which is slightly higher than the 2019/2020 year-to-date adopted budget.

Background

4.      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 (NSW) 1993.

Investment Performance Commentary

5.      Council’s performance against the benchmark for returns of its investment portfolio for December 2019, are as follows:

 

1 Month

3 Month

12 Month

Portfolio Performance

0.15%

0.45%

2.43%

Performance Index

0.07%

0.24%

1.50%

Excess

0.08%

0.21%

0.93%

Notes:                                                      

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

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

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

 


 

6.      Council’s investment portfolio as at the end of December was as follows:

Security Type

Market Value $000's

% Total Value

At Call Deposit

384

0.25%

31 Day Notice Account

8

0.01%

Consolidated Cash Fund

12,809

8.28%

Covered Floating Bond

1,010

0.65%

Flexi Deposit (Fix/Float)

6,000

3.88%

Floating Rate Deposit

5,000

3.23%

Floating Rate Note

45,597

29.48%

Term Deposit

77,542

50.15%

Managed Funds Trust

6,301

4.07%

Total Cash and Investments

154,651

100.00%

 

7.      At the end of November 2019, Total Cash and Investments were $172m and have decreased by $17m at the end of December 2019.

8.      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).

Legal Matters

9.      Georges River Council is participating in a Group Class Action against Fitch Ratings Inc., in respect of losses suffered on the Corsair (Cayman Islands) No.4 Ltd Series 6 Kakadu Collateralised Debt Obligation (CDO) notes. Council suffered a capital loss of $214,812 on these investments dating back to December 2006, and will seek damages of the capital loss including lost interest as part of the action. There is no update on this matter, in terms of an outcome as at 31 December 2019.

Borrowings

10.    Council’s loan liability, as at 31 December 2019 was $1.375m, which represents the balance of a $5m/10 year loan drawn down on 16 November 2012 for the Jubilee Park upgrade in Mortdale. The next repayment of $125,000 is due on 23 March 2020.

11.    The outstanding balance on this facility is at a variable interest rate of 194 basis points above the three month BBSW. At the current three month BBSW rate, the interest rate payable is 2.84% pa.

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

 


 

Policy Limits

 

13.    The graph below shows the Investment Rating limits, as a percentage of total cash investments, which are allowed under Council’s Investment policy. It also compares them to the amounts actually invested, as a percentage of the total cash investments. It shows that the funds invested are within the limits set in the Investment Policy.

 

Investment Income

14.    Income from interest on investments to 31 December 2019 is $1.6m, which is slightly higher than the 2019/2020 year-to-date adopted budget.

15.    Investments have been made in accordance with the Local Government Act (1993), 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 < 1 Year

73,335

47.42%

100%

1 to < 3 Years

72,810

47.08%

70%

3 to < 5 Years

8,506

5.50%

50%

Portfolio Total

154,651

100.00%

 

 

16.    Council’s portfolio is liquid, with 47.42% of assets maturing within 12 months. FRNs, At-Call Funds and Fixed Bonds also provide additional liquidity in an emergency.

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

 

 

 

 

 

 

 

 

Type of Investments

18.    The majority of Council’s investment portfolio is made up of fixed term deposits, which account for approximately 50% of total investments.

19.    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).

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

a)      Cash and 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)      An 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

21.    Credit ratings are generally a statement as to an institution’s credit quality. Council’s Investment Advisors (CPG Research & Advisory) use Standard & Poor’s Credit ratings to classify the investments held by Council. Ratings ranging from AA to BBB (Short Term) & AA to BBB (long term) are considered investment grade.

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

 

 

Short-term

AA:            The best quality companies, reliable and stable. An obligor’s capacity to meet its financial commitments on the obligation is very strong.

A:               The obligor’s capacity to meet its financial commitments on the obligation is still strong but is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions.

BBB:          Adequate capacity to meet financial commitments, but adverse economic conditions or changing circumstances are more likely to weaken the obligor’s capacity 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.         

Long-term

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.

23.    The credit quality of Council’s portfolio is relatively high with approximately 82% of assets rated ‘A’ or higher. The ‘AAA’ assets represent the deposit investments covered by the Federal Government’s Financial Claims Scheme (FCS).

24.    The remaining 18% rated ‘BBB’ or ‘unrated’ reflects the deposit and FRN investments with the regional and unrated ADIs.

 

Council’s Investment Powers

25.    Council’s investment powers are regulated by Section 625 of the NSW Local Government Act (1993), 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.

26.    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

 

Reserve Movement Overview

27.    Council’s investment portfolio is allocated across a variety of reserves which are used for funding future projects such as capital works or asset acquisitions. The Council has two types of reserves: Externally Restricted Reserves and Internally Restricted Reserves.

28.    Externally Restricted Reserves include funds raised for sewerage, domestic waste, Environmental Levy, Section 7.11 and Section 7.12 Contributions, Voluntary Planning Agreement, Town Improvement such as car parking facilities, anti-litter services etc. and can only to be used for the purpose they were raised.

29.    Internally Restricted Reserves are created to ensure Council has sufficient funds for a specific internal purpose.

Financial Implications

30.    Income from interest on investments totals $1.6m, which is slightly more than the 2019/20 year-to-date adopted budget.

 

31.    The Reserve Bank of Australia (RBA) remained the official cash rate at 0.75% in December 2019. It is reasonable to expect an “extended period” of low interest rates will be required in order to reach full employment and achieve the inflation target.

 

Risk Implications

32.    Enterprise risk/s identified and management process applied.

33.    Council’s enterprise risk identified was ‘poor financial management adversely impacts Council’s long term financial sustainability’. The risk has been managed by Council’s management of investments in accordance with the relevant act and regulations, along with Council adopted Investment Policy. To further minimise the risk, Council will progressively move towards the placement of investments only in investments rated A or above.

Community Engagement

34.    No community consultation is required as a result of this report. Members of the community are able to attend and address Council at the Council meeting in relation to this matter in accordance with Council’s Code of Meeting Practice.

 

File Reference

D20/12119

 

 

ATTACHMENTS

Attachment 1

Investment Report as at 31 Dec 2019

 


Georges River Council -         Finance and Governance Committee - Monday, 10 February 2020

FIN002-20              Investment Report as at 31 December 2019

[Appendix 1]          Investment Report as at 31 Dec 2019

 

 

Page 26

 


 


 


 



Georges River Council – Finance and Governance Committee -  Monday, 10 February 2020                                     Page 34

Item:                   FIN003-20                    Adoption of Draft Public Interest Disclosure Reporting Policy 2020 

Author:              Manager Governance and Risk

Directorate:      Business and Corporate Services

Matter Type:     Committee Reports

 

 

Recommendation;

That Council adopt the draft Public Interest Disclosure Reporting Policy 2020.

 

 

Executive Summary

1.      Council’s Public Interest Disclosure Reporting Policy (PID Reporting Policy) encourages the reporting of wrongdoing by any Public Official (including Council Officials) without risk of reprisal. The PID Reporting Policy outlines what type of wrongdoing can be reported, to whom, and how reports of wrongdoing are managed.

2.      On 9 September 2019 the Finance and Governance Committee recommended that the draft Policy be workshopped at a Councillor Briefing Session. 

3.      On 18 November 2019 the NSW Ombudsman attended the Councillor Briefing Session and provided an overview of the PID system in Local Government and supported the proposed PID Reporting Policy.

4.      This is a requirement as stipulated in Section 6D of the Public Interest Disclosures Act 1994 (PID Act) which states that Council is required to have a PID policy, and under Section 6E Council must ensure compliance with the policy and meeting legislative and statutory obligations.

Background

5.      The PID Reporting Policy (version 1) was adopted by Council on 3 July 2017, with a minor amendment to contact details made on 26 February 2018 (version 2).

6.      Consultation on amendments to the Policy has occurred with the NSW Ombudsman’s Office, the Independent Commission against Corruption (ICAC) and the Office of Local Government.

7.      Representatives from the NSW Ombudsman attended a Councillor Briefing session on 18 November 2019 where they provided an overview of the PID system in Local Government and supported the proposed amendments to Council’s Policy.

8.      The Public Interest Disclosures Act 1994 (PID Act), provides a system to encourage public officials to report serious wrongdoing. The application of the Act is overseen by the NSW Ombudsman who provides guidance with respect to its application in the public sector. A government authority must comply with the provisions of the Act to ensure that individuals within the public sector are provided with a course of action to report serious wrongdoing. The authority must ensure that staff are aware of the policy and the protections under the Act for those who make a PID.

9.      As defined under the PID Act section 3, a PID can be about any of the following categories

·    Corrupt conduct

·    Maladministration

·    Serious and substantial waste

·    Government information contravention

·    Local Government pecuniary interest contravention

 

10.    For a report to be a PID it must:

·     be made by a public official about a public official or public authority

·     be about one of the categories of conduct outlined in the PID Act

·     be based on an honest belief, on reasonable grounds that the alleged information shows or tends to show wrongdoing

·     be made to a principal officer, disclosure coordinator or nominated officer; or to an investigating authority

·     not question the merits of government policy or be made to avoid dismissal/disciplinary action

 

11.    The Ombudsman’s Office has advised that the Principal Officer (General Manager or Mayor) is responsible for determining whether to treat a matter as a PID and if necessary may seek advice from independent experts and relevant investigating authorities to form this view.

12.    Council’s PID Reporting Policy complies with the PID Act and the Model Internal Reporting Policy for Local Government (June 2014), and the key amendments are outlined below:

·        The onus is on the public authority (i.e. Council) to decide whether to treat the matter as a PID (recommended by NSW Ombudsman);

·        Clarification of definition of ‘corrupt conduct’ (recommended by NSW Ombudsman);

·        Updating of ‘council official’ to align with the revised definition contained in new Code of Conduct (as adopted by Council in May 2019);

·        Clarification that the policy applies to all Public Officials, including Council Officials, and the subsequent removal of any references specific to ‘Councillors and staff’; 

·        Increasing the number of Disclosure Officers at Council (now including the Director Legal Services and General Counsel, Director Business and Corporate Services, Team Leader Content and Discovery, and Coordinator Fleet and Operational Procurement); and

·        The General Manager to undertake minor editorial amendments to nominated Disclosures Officers/Coordinator and contact details and any other policy content of an operational nature under delegated authority.

Financial Implications

13.    No budget impact as a result of this report.

 

Risk Implications

14.    This policy assists Council to maintain legislative compliance and to meet its statutory reporting requirements to external reporting bodies.

 

Community Engagement

15.    Council has engaged with the relevant investigating authorities and the proposed amendments were presented at a Councillor Briefing. Following Council’s adoption of the Draft PID Reporting Policy, the revised Policy will be published on Council’s website.

 

File Reference

D17/94059

 

 

ATTACHMENTS

Attachment 1

Draft Public Interest Disclosure Reporting Policy 2020 (V3)

 


Georges River Council -         Finance and Governance Committee - Monday, 10 February 2020

FIN003-20              Adoption of Draft Public Interest Disclosure Reporting Policy 2020

[Appendix 1]          Draft Public Interest Disclosure Reporting Policy 2020 (V3)

 

 

Page 37

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Georges River Council – Finance and Governance Committee -  Monday, 10 February 2020                                     Page 58

Item:                   FIN004-20                    Report on Outstanding Council Resolutions for the period 01 October 2019 - 31 December 2019 

Author:              Manager, Office of the General Manager

Directorate:      Office of the General Manager

Matter Type:     Committee Reports

 

 

Recommendation:

That the report on Outstanding Council Resolutions for the period 01 October 2019 to 31 December 2019, be received and noted.

 

 

 

Executive Summary

1.      This report provides progress on outstanding resolutions as at 31 December 2019.

Background

2.      Attachment 1 contains all Council resolutions that remain outstanding or require further action. 

3.      Completed items have been marked accordingly and will be removed from future reports. 

Financial Implications

4.      There are no budget implications for this report.

Risk Implications

5.      The Enterprise Risk Management Strategy contains relevant actions in regards to the provision of an open, accessible and transparent decision making and meeting process.  The quarterly consideration of this report ensures that Councillors and members of the community are informed in regards to the status of implementation of council resolutions.  

Community Engagement

6.      Members of the community are able to attend and address Council meetings in accordance with Council’s Code of Meeting Practice.

File Reference

D19/255837

 

 

ATTACHMENTS

Attachment 1

Outstanding Council Resolutions as at 31 December 2019 - PDF

 


Georges River Council -         Finance and Governance Committee - Monday, 10 February 2020

FIN004-20              Report on Outstanding Council Resolutions for the period 01 October 2019 - 31 December 2019

[Appendix 1]          Outstanding Council Resolutions as at 31 December 2019 - PDF

 

 

Page 59

 


Georges River Council – Finance and Governance Committee -  Monday, 10 February 2020                                     Page 95

Item:                   FIN005-20                   Property Matter - Proposed Dedication of Land as Public Road - 75 Louis Terrace, Hurstville 

Author:              Strategic Property Specialist

Directorate:      Business and Corporate Services

Matter Type:     Committee Reports

 

 

Recommendation:

(a)     That the additional information contained in this report be received and noted.

(b)     That in accordance with Section 47(f)(2)(a) of the Local Government Act 1993, authority be granted for the land described as Lot 1 in DP1242651 at 75 Louis Terrace, Hurstville to be dedicated as public road by the placement of a notice in the NSW Government Gazette under Section 10 of the Roads Act 1993.

(c)     That the General Manager be authorised to execute all documentation to give effect to this resolution.

 

Executive Summary

1.      On 23 September 2019, Council resolved as follows in relation to report number ASS032-19:

(a)    That in accordance with Section 47(f)(2)(a) of the Local Government Act 1993, authority be granted for the land described as Lot 94 Section 2 in DP 5337 and Lot 21 Section 2 in DP 5337 forming part of Cross Street, Hurstville to be dedicated as public road by the placement of a notice in the NSW Government Gazette under Section 10 of the Roads Act 1993.

(b)     That the General Manager be authorised to execute all documentation, and authority be granted to affix the Common Seal of Council to the Plan of Dedication or any other documentation required to give effect to this resolution.

(c)     That Lot 1 in DP1242651 known as 75 Louis Terrace, Hurstville be deferred for further information.

 

2.      A copy of the report “Proposed Dedication of Land as Public Road – Cross Street and Louis Terrace, Hurstville” is provided as Attachment 1.

3.      Information as required by resolution (c) above is now provided.

 

Additional Information

4.      The former Hurstville Council tacitly granted access over the land to the owner of adjoining land at 1 Edith Avenue when it approved the building of a garage at 1 Edith Street in 1975. At that time, Council did not have title to the land.

5.      The land was subsequently vested to Council in 2017 and dedicated as a public reserve. As a consequence, it was classified as community land, over which a right of access cannot be granted unless same is permitted by the Plan of Management applicable to the land.

6.      As a consequence, the continued use of the land for access by the owner of 1 Edith Street was effectively rendered unlawful.

7.      The cheapest and most effective way for Council to regularise the use of the land for access by the owner of 1 Edith Street would be to dedicate the land as public road. It is proposed that once the dedication has occurred, a further report be brought to Council with recommendations about the future use of the land.

8.      As a result of the proposed dedication, Council’s land (adjoining) at 50 Hodge Street will continue to enjoy dual street frontage       .

9.      Council has received valuation advice to the effect that the land (Lot 1 in DP1242651) is not capable of being developed in isolation. However, if part of the land was to be subdivided and amalgamated with the adjacent, vacant Council block at 50 Hodge Street, the amalgamated parcel would have an increased land value. 

10.    It is proposed that, following dedication, consideration be given to subdivision as described above, closure of the newly dedicated road across that part, and that it then be offered for sale along with the Council-owned land at 50 Hodge Street. This proposal would form the subject of a further report to be brought to Council.  It should be noted that the land at 50 Hodge Street is zoned Residential and was identified as a Divestment Opportunity in the Commercial Property Strategy considered by Council on 25 November 2019.

11.    It should also be noted that the owner of 1 Edith Street has expressed some interest in buying part of the land following dedication. This will be explored in the further report referred to above.

12.    The part of the land at 75 Louis Terrace that will be proposed for road closure and disposal is currently used for private car parking by the owner of adjacent land at 73 Louis Terrace. However, this use is unlawful and Council is under no obligation to regularise such use, or provide any alternative car parking for private vehicles.

 

File Reference

13/568

 

 

ATTACHMENTS

Attachment 1

Assets and Infrastructure Committee report 9 September - 75 Louis Terrace Hurstville

Attachment 2

75 Louis Terrace valuation report (Confidential)

 


Georges River Council -         Finance and Governance Committee - Monday, 10 February 2020

FIN005-20              Property Matter - Proposed Dedication of Land as Public Road - 75 Louis Terrace, Hurstville

[Appendix 1]          Assets and Infrastructure Committee report 9 September - 75 Louis Terrace Hurstville

 

 

Page 97

 


 


 


 


 


 


 


 


 





Georges River Council – Finance and Governance Committee -  Monday, 10 February 2020                                     Page 110

Item:                   FIN006-20                    Property Matter - 50 Lillian Road, Riverwood (Lillian Road Reserve) - Grant of Easement to Drain Water for Benefit of Adjoining Property 

Author:              Strategic Property Specialist

Directorate:      Business and Corporate Services

Matter Type:     Committee Reports

 

 

Recommendation:

(a)     That Council grant an Easement to Drain Water over Lot 13 in Deposited Plan (DP) 207755, being part of Lillian Road Reserve, Riverwood, as generally detailed in this report.

(b)     That the General Manager be authorised to execute the Section 88B Instrument or Transfer Granting Easement and all associated documentation to create the easement under Common Seal of the Council, if required.

(c)     That all costs associated with the granting of the easement be met by the applicant.

 

Executive Summary

1.      As a condition of Development Consent DA2019/0117, the owner of 40 Lillian Road, Riverwood is required to obtain an Easement to Drain Water over the adjoining Council owned land described as Lot 13 in DP207755, being part of the Lillian Street Reserve, Riverwood (the Reserve).

2.      The proposed easement is 1m wide by 3m long and will permit a subsurface drainage connection to an existing drainage facility located within the Reserve.

3.      The purpose of this report is to seek approval to grant the proposed easement at market value over the Reserve.

Background

4.      Georges River Council is the registered proprietor of an open space/bushland recreation reserve legally described in part as Lot 13 in DP207755 and forming part of the Lillian Road Reserve, Riverwood.  Location plans are annexed to this report as Attachments 1 and 2.

5.      In furtherance of a condition in Development Consent DA2019/0117, Council has received a request from the owner of 40 Lillian Road, Riverwood for an easement to drain water from their property to the existing public drainage infrastructure located within the adjoining Reserve mentioned above.

6.      The proposed easement to drain water is proposed to be granted over a Council owned parcel of “community” classified land.  In accordance with community provisions of the Local Government Act 1993, Council is permitted to grant easements for drainage over community classified land in order to allow connection into existing public storm water drainage facilities located within public reserves.

7.      The proposed subsurface easement will encumber Council’s land by approximately 3m2 and will permit connection into the existing public drainage infrastructure within the Reserve.

 

 

Financial Implications

8.      In exchange for granting the proposed easement, the applicant will be required to pay market value consideration for encumbering Council’s land.  The market value determination is annexed to this report as confidential Attachment 2

9.      In addition to the determined market value, the applicant has agreed to pay Council’s incurred valuation, legal and all associated easement survey, lodgement and registration costs as well as costs for the necessary infrastructure works and subsequent “make good” provisions.

 

Risk Implications

10.    No risks identified as a result of this report.

 

Community Engagement

11.    Community engagement is not required as a result of this report.

 

 

File Reference

19/2147

 

 

ATTACHMENTS

Attachment 1

Location Plan - Proposed Easement - 50 Lillian Road, Riverwood (Lillian Road Reserve)

Attachment 2

Location Plan 2 - Proposed Easement - 50 Lillian Road, Riverwood (Lillian Road Reserve)

Attachment 3

Valuation Report - Proposed Easement - 50 Lillian Road, Riverwood (Lillian Road Reserve) (Confidential)


Georges River Council -         Finance and Governance Committee - Monday, 10 February 2020

FIN006-20              Property Matter - Proposed Dedication of Land as Public Road - 75 Louis Terrace, Hurstville

[Appendix 1]          Location Plan - Proposed Easement - 50 Lillian Road, Riverwood (Lillian Road Reserve)

 

 

Page 111

 


Georges River Council -         Finance and Governance Committee - Monday, 10 February 2020

FIN006-20              Property Matter - Proposed Dedication of Land as Public Road - 75 Louis Terrace, Hurstville

[Appendix 2]          Location Plan 2 - Proposed Easement - 50 Lillian Road, Riverwood (Lillian Road Reserve)

 

 

Page 112