HURSTVILLE CITY COUNCIL
CIVIC CENTRE, MACMAHON STREET, HURSTVILLE.
__________________________________
SUMMARY OF ITEMS CONTAINED IN THE
DIVISIONAL MANAGER - BUSINESS AND FINANCIAL SERVICES' REPORT
TO THE MEETING OF THE FINANCE COMMITTEE
TO BE HELD ON JANUARY
Warrant No. 6/95 (Appendix 'A' To Divisional Manager's Report) (F/00009) (Report By Manager - Accounting, Mr R Bowling)
Financial Statement (Form 2) As At 12Th April 1995 (Appendix 'B' To
Divisional Manager's Report) (F/00009)
Council Investments As At 12Th April 1995 (F/00009)
Job Cost Report - Expenditure To 12Th April 1995 (Appendix 'C' To Divisional Manager's Report) (F/00009) (Report By Manager - Management Accounting, Mrs C Long)
Report On Rate Collections For Period 1/7/1994 To 11Th April 1995 (F/0009)
Local Government Auditors Association Conference
Rate Agency Collection Agreement
Pensioner Rebates
| HURSTVILLE CITY COUNCIL REPORT ITEM NO: 02.01 BUSINESS & FINANCIAL SERVICES |
02.01 WARRANT NO.6/95 (APPENDIX "A" TO DIVISIONAL MANAGER'S REPORT) (F/00009)
(Report by Manager - Accounting, Mr R Bowling)
The following accounts are now submitted for examination and recommendation by the Finance Committee:-
| General Fund | 026940-027315 | $8,126,559.10 |  |
| 027316-027478 incl | 257,398.98 | $ 8,383,958.08 |
| Trust Fund | 407113-407189 incl | | 487,132.19 |
| Main Roads Trust Fund | N/A | | $ ___- |
| | | $ 8,871,090.27 |
| HURSTVILLE CITY COUNCIL RECOMMENDATION NO: 02.01 BUSINESS & FINANCIAL SERVICES |
HEADING: Recommendation WARRANT NO.6/95 (APPENDIX "A" TO DIVISIONAL MANAGER'S REPORT) (F/00009)
(Report by Manager - Accounting, Mr R Bowling)
RECOMMENDATION
THAT, following examination of the vouchers contained in Warrant No. 6/95, the
undermentioned amounts are now recommended to Council for payment:-
General Fund $8,383,958.08
Trust Fund 487,132.19
Main Roads Trust Fund $ __ _-
$8,871,090.27
| HURSTVILLE CITY COUNCIL REPORT ITEM NO: 02.02 BUSINESS & FINANCIAL SERVICES |
02.02 FINANCIAL STATEMENT (FORM 2) AS AT 12TH APRIL, 1995 (APPENDIX "B" TO DIVISIONAL MANAGER'S REPORT) (F/00009)
(Report by Manager - Financial Accounting, Mr R Bowling)
- Financial Statement, submitted to Finance Committee as previously required under Ordinance No.26, Clause 18(a) for the Committee's information.
| HURSTVILLE CITY COUNCIL RECOMMENDATION NO: 02.02 BUSINESS & FINANCIAL SERVICES |
HEADING: Recommendation FINANCIAL STATEMENT (FORM 2) AS AT 12TH APRIL, 1995 (APPENDIX "B" TO DIVISIONAL MANAGER'S REPORT) (F/00009)
(Report by Manager - Financial Accounting, Mr R Bowling)
RECOMMENDATION
- THAT the Financial Statement as submitted by received and adopted.
| HURSTVILLE CITY COUNCIL REPORT ITEM NO: 02.03 BUSINESS & FINANCIAL SERVICES |
02.03 COUNCIL INVESTMENTS AS AT 12TH APRIL, 1995 (F/00009)
(Report by Manager - Accounting, Mr R Bowling)
Report by Divisional Manager:
The following tables give details of Council's funds invested as at 12th April 1995.
Certificate of Investment
The following investments have been made in accordance with Section 625 of the Local Government Act 1993 and Regulations and in accordance with Council's Investment Policy.
| Date Invested | With Whom Invested | Amount $ | Yield % | Days | Due Date |
| (a) Term Deposits | | | | | |
| 10.04.95 | N.A.B. | 6,650,763.03 | 7.91 | 60 | 08.06.95 |
| (b) Commercial Bills | | | | | |
| 15.03.95 | Westpac | 1,787,296.97 | 7.63 | 34 | 18.04.95 |
| 13.03.95 | St George | 3,973,675.76 | 7.80 | 31 | 13.04.95 |
| 06.04.95 | Westpac | 4,470,020.25 | 7.65 | 32 | 08.05.95 |
| 05.04.95 | Westpac | 4,965,655.35 | 7.65 | 33 | 08.05.95 |
| 10.02.95 | Westpac | 1,479,840.12 | 8.02 | 62 | 13.04.95 |
| 03.04.95 | St George | 2,480,612.49 | 7.71 | 37 | 10.05.95 |
| 03.04.95 | Westpac | 3,351,642.68 | 7.86 | 67 | 09.06.95 |
| | $22,508,743.62 | | | |
| (c) Money on Overnight Call | | $1,498,050.49 | | | |
| (d) Promissory Notes | | Nil | | | |
| Total Investments | | $30,657,557.14 | | | |
SUMMARY OF INVESTMENTS
(a) | Term Deposits | $ 6,650,763.03 |
(b) | Commercial Bills | $22,508,743.62 |
(c) | Money Market | $ 1,498,050.49 |
(d) | Promissory Notes | $ Nil |
| TOTAL: | $30,657,557.14 |
| HURSTVILLE CITY COUNCIL RECOMMENDATION NO: 02.03 BUSINESS & FINANCIAL SERVICES |
HEADING: Recommendation COUNCIL INVESTMENTS AS AT 12TH APRIL, 1995 (F/00009)
(Report by Manager - Accounting, Mr R Bowling)
RECOMMENDATION
- THAT the report be received and noted.
| HURSTVILLE CITY COUNCIL REPORT ITEM NO: 02.04 BUSINESS & FINANCIAL SERVICES |
02.04 JOB COST REPORT - EXPENDITURE TO 12TH APRIL, 1995 (APPENDIX "C" TO DIVISIONAL MANAGER'S REPORT) (F/00009)
(Report by Manager - Management Accounting, Mrs C Long)
- Submitted for the information of Council.
| HURSTVILLE CITY COUNCIL RECOMMENDATION NO: 02.04 BUSINESS & FINANCIAL SERVICES |
HEADING: Recommendation JOB COST REPORT - EXPENDITURE TO 12TH APRIL, 1995 (APPENDIX "C" TO DIVISIONAL MANAGER'S REPORT) (F/00009)
(Report by Manager - Management Accounting, Mrs C Long)
RECOMMENDATION
- THAT the report be received and noted.
| HURSTVILLE CITY COUNCIL REPORT ITEM NO: 02.05 BUSINESS & FINANCIAL SERVICES |
02.05 REPORT ON RATE COLLECTIONS FOR PERIOD 1/7/1994 TO 11TH APRIL 1995 (F/00009)
(Report by Manager - Rates, Mr W Wood)
| Type of Charges | Arrears $ | Current $ | Collections $ | Outstanding Balance $ |
| Combined Rates & Garbage Charges | 343,817 | 19,494,501 | -14,723,928 | 3,428,558 |
| Pension Rebates | | -1,685,832 | | |
| Extra Charges | 175,046 | 51,301 | - 69,288 | 157,059 |
| 518,863 | 17,859,970 | -14,793,216 | 3,585,617 |
Collections to 11th April 1995 represent 80.49% of the total amount of Rates and Charges recoverable and 82.82% of the 1994/1995 Levy.
Collections for the similar period during 1993 were 86.40% and 88.86%, respectively.
It should be noted that instalment payment dates have changed to reflect the new rating period under the provisions of the Local Government Act. The fourth instalment payment for the 1994/1995 levy is not until 31st May 1995, whereas the collection figures shown for the 1993 levy is at the third instalment payment date.
| HURSTVILLE CITY COUNCIL RECOMMENDATION NO: 02.05 BUSINESS & FINANCIAL SERVICES |
HEADING: Recommendation REPORT ON RATE COLLECTIONS FOR PERIOD 1/7/1994 TO 11TH APRIL 1995 (F/00009)
(Report by Manager - Rates, Mr W Wood)
RECOMMENDATION
- THAT the information be received and noted.
| HURSTVILLE CITY COUNCIL REPORT ITEM NO: 02.06 BUSINESS & FINANCIAL SERVICES |
02.06 LOCAL GOVERNMENT AUDITORS ASSOCIATION CONFERENCE
- The Local Government Auditors Association will be holding their annual conference in Canberra from Sunday, 28th May to Tuesday, 30th May, 1995.
The main area of discussion for this year's conference is the issues surrounding the introduction of infrastructure assets, AAS27 and guidelines to the new Local Government Accounting code.
Registration costs for the conference are $650.00 per delegate. In previous years Council has granted authority for at least one staff representative to attend this conference. In addition, Council has previously agreed to pay registration fees and out-of-pocket expenses in connection with attendance at the conference.
It is advised that amounts of $26,533.86 and $27,742.16 have been expended to date from the 1994/95 Delegates' Expenses allocation of $30,000 and $31,000 for Councillors and Senior Officers, respectively. It is further advised that no additional amounts have been committed for Councillors and Senior Officers and therefore a total amount of $54,276.02 will be expended this year in respect of those conferences, seminars, etc., for which Council has already authorized attendance by Councillors and/or Senior Officers at previous meetings.
| HURSTVILLE CITY COUNCIL RECOMMENDATION NO: 02.06 BUSINESS & FINANCIAL SERVICES |
HEADING: Recommendation LOCAL GOVERNMENT AUDITORS ASSOCIATION CONFERENCE
RECOMMENDATION
- THAT the Manager - Financial Services and the Manager - Financial Projects be permitted to attend the conference.
FURTHER, THAT registration fees and out-of-pocket expenses be paid by Council.
| HURSTVILLE CITY COUNCIL REPORT ITEM NO: 02.07 BUSINESS & FINANCIAL SERVICES |
02.07 RATE AGENCY COLLECTION AGREEMENT
- As part of the normal rate collection procedures arrangements operate whereby residents are able to pay their outstanding rates at any branch of the Commonwealth Bank or at any Australia Post Office within the Hurstville region.
The current agreement with Australia Post expires on 30 June 1995 and approval is now sought to execute a new agreement for the 1995/96 year. The proposed terms and conditions are the same as in the previous year except for the following areas:-
(i) Charges will increase from $1.10 to $1.60 per transaction;
(ii) Service levels offered by Australia Post will increase whereby ratepayers will be able to make payments at any Australia Post Office in Australia; and
(iii) Processing time and productivity are expected to improve as Australia Post finalize their computer systems such that payment data will be downloaded direct into our computer system rather than being manually re-punched each day.
Accordingly, approval is sought for the General Manager to execute all appropriate documentation with Australia Post to appoint it as an Agent for the collection of Council's Rates.
| HURSTVILLE CITY COUNCIL RECOMMENDATION NO: 02.07 BUSINESS & FINANCIAL SERVICES |
HEADING: Recommendation RATE AGENCY COLLECTION AGREEMENT
RECOMMENDATION
- THAT authority be delegated to the General Manager to execute all necessary documents to enter into a rate collection Agency Agreement with Australia Post for the 1995/96 years.
| HURSTVILLE CITY COUNCIL REPORT ITEM NO: 02.08 BUSINESS & FINANCIAL SERVICES |
02.08 PENSIONER REBATES
(Report by Divisional Manager - Business & Financial Services, Mr W Bradey, and Manager - Rates, Mr W Wood)
- At the meeting of the Policy Review, Forward Planning and Staff Committee of 29 March 1994, consideration was given of the effect of the change from a Minimum Rate to the introduction of a Base Rate of $120 on pensioners. It was noted that as a result of this change that approximately 9% of pensioners (properties valued between $50,000 - $80,000) would face an average increase of $16 - $24 on the current rate basis which incorporates the recent land revaluation.
The Committee requested that a report be prepared for Council to consider how the voluntary element of the pensioner rebate could be altered to ameliorate the effect on these pensioners.
At present pensioners resident within the City of Hurstville receive two levels of rebates. The first level is prescribed under the Local Government Act, 1993, of 50% of rates, up to a maximum of $250. Half of this amount is funded by the State Government and the remainder is funded by Council.
In addition during 1994/95, as in previous years, Council provides a second voluntary tier of rebates to pensioners on an escalating scale up to $75.00 as follows:-
| Less than $100,000 | Voluntary Rate Nil |
| $100,000 - 120,000 | $10 |
| $120,000 - 140,000 | $40 |
| $140,000 - 160,000 | $60 |
| Greater than $160,000 | $75 |
After reviewing the level of rebates provided to pensioners with an overriding view of seeking to maintain the total cost to Council at a similar level to 1994/95 (Refer below) it is considered that significant benefits could be provided to pensioners with lower property values by:-
(i) extending the $10 rebate down from properties valued at $100,000 to properties valued at greater than $60,000; and
(ii) reducing the top level of rebates from $75 to $70.
This would provide a proposed scale of voluntary pensioner rebates for 1995/96 as follows:-
| Less than $60,000 | Voluntary Rate Nil |
| $60,000 - 120,000 | $10 |
| $120,000 - 140,000 | $30 |
| $140,000 - 160,000 | $60 |
| Greater than $160,000 | $70 |
Under this scenario only 253 pensioners of a total of 5,942 would face an average rate rise of between $13 - $16 compared to the previous year. A further 166 pensioners would face an average rise of approximately $6. The remaining 5,523 pensioners should receive a reduction in their total rates as a result of the combination of the revaluation of land generally in the City and the move to a Base Rate charge of $120.
The total cost to Council under the previous rebate levels and the use of a Minimum Rate for 1995/96 was estimated to be $964,876 compared to $997,618 as proposed by the above level of rebates and should be able to be accommodated within the 1995/96 budget figures.
| HURSTVILLE CITY COUNCIL RECOMMENDATION NO: 02.08 BUSINESS & FINANCIAL SERVICES |
HEADING: Recommendation PENSIONER REBATES
(Report by Divisional Manager - Business & Financial Services, Mr W Bradey, and Manager - Rates, Mr W Wood)
RECOMMENDATION
THAT the matter be considered by Council.
* * * * * * *
Yours faithfully,
W D Bradey
Divisional Manager -
Business & Financial Services
| HURSTVILLE CITY COUNCIL REPORT ITEM NO: 02.09A BUSINESS & FINANCIAL SERVICES |
A D D E N D U M
02.09A GENERAL RATE INCREASE 1995/96
- The Minister for Local Government and Co-Operatives, the Hon Ernest Page MP, announced on Wednesday 19 April 1995, that the NSW Government has approved a general rate increase of 2.2% for all local Councils for the 1995/96 year.
The 1995/96 Budget adopted by Council on 12 April 1995 was approved on the basis that an increase of up to 2% would be applied in accordance with a list of additional expenditure items outlined in the General Manager's Report. The level of increase approved in conjunction with the Budget was up to $285,000 (being a 2% increase in permissible income).
Under the announcement advised by the State Government for an increase of 2.2% in rates for 1995/96 this would translate in Hurstville's case to a total net increase in income of approximately $326,000 for Rates and $42,000 for Domestic Waste Services.
Approval is now sought to maintain the income base of Council and apply the full increase of 2.2% permitted by the State Government for the following reasons:-
(i) The provision of Domestic Waste Services was budgeted on the basis of drawing approximately $100,000 from the Domestic Waste restricted Reserve to cover the full cost of the service. Consequently, by taking the full increase of 2.2% will allow Council to reduce the level required to be funded from the Reserve, thus, leaving a contingency in the Reserve for subsequent years and to cover any increases in tipping fees which are still to be finalized for 1995/96.
(ii) The increase in general rates from 2.0% to 2.2% equates to approximately $41,000. As outlined in item 2.7 of this Report on proposed changes to the voluntary element of the Pensioner Rebate there is an expected increased net cost of $20,000 - $25,000 which could be offset by adopting the additional 0.2% rate increase permitted by the Government.
Overall, it is considered that the permissible increase of 2.2% is tight when compared to an expected inflation increase of 4.0% for 1995/96. However, by applying the full increase permitted Council would be protecting its revenue base for future years and allows it to undertake important equipment upgrades which were outlined in the budget but put on hold in case no rise was applied.
| HURSTVILLE CITY COUNCIL RECOMMENDATION NO: 02.09 BUSINESS & FINANCIAL SERVICES |
HEADING: Recommendation GENERAL RATE INCREASE 1995/96
RECOMMENDATION
- THAT Council agree to apply the full 2.2% increase in rates and charges permitted by the Minister of Local Government and Co-Operatives in respect of the 1995/96 year.
* * * * * * *
Yours faithfully,
W D Bradey
Divisional Manager -
Business & Financial Services
| HURSTVILLE CITY COUNCIL REPORT ITEM NO: . Appendix for Business and Financial Services |
.99 Appendix C - Job Cost Report - Appendix
To view the Job Cost Report please double click with your mouse pointer on the icon which appears below. When you have done this a box will appear on the screen and you should select the option "Launch" from this box. This action will launch Notepad which will then allow you to view the Job Cost Report. When finished you should select "File" from the Notepad menu bar and then "Exit" from within the box which will appear below "File".
| HURSTVILLE CITY COUNCIL REPORT ITEM NO: . Appendix for Business and Financial Services |
.99 Appendix A - Warrant No.6/95- Appendix
To view the Warrant please double click with your mouse pointer on the icon which appears below. When you have done this a box will appear on the screen and you should select the option "Launch" from this box. This action will launch AmiPro which will then allow you to view the Warrant. When finished you should select "File" from the AmiPro menu bar and then "Exit" from within the box which will appear below "File".
| HURSTVILLE CITY COUNCIL REPORT ITEM NO: . Appendix for Business and Financial Services |
.99 Appendix B - Financial Statement (Form 2)- Appendix
HURSTVILLE CITY COUNCIL
FINANCE COMMITTEE MEETING HELD ON 26TH APRIL 1995
FINANCE COMMITTEE MEETING HELD ON 26TH APRIL 1995
His Worship the Mayor and Councillors
Civic Centre
HURSTVILLE
Following is a Financial Statement of the Council's position to the effect of Ordinance 26 (Form 2):-
GENERAL FUND
| Debit | Balance - Cash Account as at 24th March 1995 | 411,309.92 |
| Deduct | Receipts for period ended 12th April 1995 | |
| A | Combined Rates and Charges | (62,013.79) |
| B | Miscellaneous | (7,801,489.21) (7,452,193.08) |
| Deduct | Payments for period ended 12th April 1995 | |
| A | Authorized last meeting | 173,535.88 |
| B | Paid since last meeting subject to confirmation | 8,126,559.10 |
| C | Bank Charges | 0.00 8,300,094.98 |
| Debit | Balance - Cash Account as at 12th April 1995 | 847,901.90 |
| Add | Accounts now presented for approval | 257,398.98 |
| Debit | Balance after payment of accounts presented for approval to pay | $ 1,105,300.88 |
| Other unpaid accounts in the Office amount to | $19,799.92 |
| Limit of overdraft arranged with Bank | $150,000.00 |
| Limit of overdraft as authorized by Auditors' certificate dated 12th August, 1994 | $13,442,000.00 |
| Fixed Deposits:- Trust Fund General Fund Trust A/c Sec 94 Funds Reserve Accounts (below) Main Roads Trust Fund General Reserve Fund | 2,869,892.17 11,926,010.46 3,323,800.51 9,137,424.78 612,505.00 2,694,474.50 $30,564,107.42 |
Balance at Credit in Reserve Accounts funds as at 12th April 1995 as follows:-
| Employee Entitlements | $ 2,342,070.00 |
| Capital Works Reserve | $ 5,132,256.10 |
| Development Reserve | $ 1,663,098.68 $ 9,137,424.78 |
This is Appendix "B" mentioned in Item No. 2 (Financial Statement, Form 2) of the Divisional Manager - Business & Financial Services' Report to the Meeting of the Finance Committee of the Council of the City of Hurstville held on 26th April 1995, referred to in the report of such Committee.