ORDINARY COUNCIL MEETING AGENDA 22 JULY 2020 7.00PM
TO BE HELD IN THE COUNCIL CHAMBERS 23-25 CHELMSFORD PLACE LEETON NSW 2705
Authorised for release: Jackie Kruger General Manager LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
LEETON SHIRE COUNCIL
AGENDA
ORDINARY COUNCIL MEETING
22 July 2020
7.00PM ______
1. CIVIC PRAYER
2. ACKNOWLEDGEMENT OF COUNTRY
3. APOLOGIES AND APPLICATIONS FOR LEAVE OF ABSENCE BY COUNCILLORS
4. CONFIRMATION OF MINUTES AND ANY MATTERS ARISING
RECOMMENDATION THAT the Minutes of the Ordinary Council Meeting held on Wednesday 24 June 2020, as circulated, be taken as read and CONFIRMED.
5. DISCLOSURES OF INTERESTS
6. PUBLIC REPRESENTATIONS
7. MAYORAL MINUTES 7.1 UPDATED WATER POLICY POSITION STATEMENT ...... 4
8. REPORTS TO COUNCIL
GENERAL MANAGER’S MATTERS 8.1 RAMJO BOARD MEETING MINUTES AND WATER POSITION STATEMENT ...... 8
BUSINESS AND INVESTMENT MATTERS 8.2 INVESTMENTS REPORT FOR JUNE 2020 ...... 32 8.3 ENDORSEMENT OF THE DRAFT FINANCIAL HARDSHIP POLICY AND DRAFT DEBT RECOVERY POLICY JULY 2020 ...... 44
1 LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
OPERATIONAL MATTERS 8.4 PROPOSED ROAD CLOSURE AND SALE - PART MAHER ROAD LEETON ...... 71
9. NOTICES OF MOTION
10. COUNCILLOR ACTIVITY REPORTS 10.1 COUNCILLOR ACTIVITY REPORT ...... 75
11. CONFIDENTIAL MATTERS
12. CONCLUSION OF THE MEETING
Council meetings are now video recorded. Members of the public are advised that their voice and/or image may form part of that recording.
PUBLIC REPRESENTATION
If any member of the public wishes to formerly address the Council in relation to a matter in this agenda they are to register to speak for a maximum of three (3) minutes by Tuesday 12 noon preceding the meeting.
Contact Regina Butler – 6953 0938
Public Attendance Restrictions
Due to COVID-19 there are limits on numbers of people in the Council Chambers.
Residents and ratepayers wishing to address Council will need to register in advance so that Council has time to arrange presentation schedules and options.
2 LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
ETHICAL DECISION MAKING AND CONFLICTS OF INTEREST
A GUIDING CHECKLIST FOR COUNCILLORS, OFFICERS AND COMMUNITY COMMITTEES
ETHICAL DECISION MAKING • Is the decision or conduct legal? • Is it consistent with Government policy, Council’s objectives and Code of Conduct? • What will the outcome be for you, your colleagues, the Council, anyone else? • Does it raise a conflict of interest? • Could your possible conflict of interest lead to private gain or loss at public expense? • Can the decision be justified in terms of public interest? • Would it withstand public scrutiny?
CONFLICT OF INTEREST • A conflict of interest is a clash between private interest and public duty. There are two types of conflict: Pecuniary – regulated by the Local Government Act and Division of Local Government and, Non-pecuniary – regulated by Codes of Conduct and policy. ICAC, Ombudsman, Division of Local Government (advice only).
THE TEST FOR CONFLICT OF INTEREST • Is it likely I could be influenced by personal interest in carrying out my public duty? • Would a fair and reasonable person believe I could be so influenced? • Conflict of interest is closely tied to the layperson’s definition of “corruption” – using public office for private gain. • Important to consider public perceptions of whether you have a conflict of interest
IDENTIFYING PROBLEMS 1st Do I have private interest affected by a matter I am officially involved in? 2nd Is my official role one of influence or perceived influence over the matter? 3rd Do my private interest conflict with my official role?
Whilst seeking advice is generally useful, the ultimate decision rests with the person concerned.
AGENCY ADVICE Officers of the following agencies are available during office hours to discuss the obligations placed on Councillors, Officers and Community Committee members by various pieces of legislation, regulation and Codes.
Contact Phone Email Website Leeton Shire Council 6953 0911 [email protected] www.leeton.nsw.gov.au
ICAC 8281 5999 [email protected] www.icac.nsw.gov.au Toll Free 1800 463 909
Office of Local Government 4428 4100 [email protected] www.olg.nsw.gov.au
NSW Ombudsman 9286 1000 Toll Free 1800 451 524 [email protected] www.ombo.nsw.gov.au
3 LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020 MAYORAL REPORTS
ITEM 7.1 UPDATED WATER POLICY POSITION STATEMENT
RELATED FILE NUMBER EF10/455
RECORD NUMBER 20/266
SUMMARY/PURPOSE
Water is the lifeblood of the MIA. The Murray Darling Basin Plan (Basin Plan) and Water Act 2007 (the Act) are impacting our community in ways that need to be urgently addressed. To achieve currency and clarity on our position on these matters, and having regard to the recently adopted RAMJO Water Position Paper, I am proposing an update to the Leeton Shire Water Policy Position Statement first adopted in 2019.
Council adopted a Water Policy Position Statement in May last year.
4 LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Activities since the Leeton Shire Council Water Policy Statement was adopted include:
• Release of the Mick Keelty report (Impact of Lower Inflows on State Shares Under the Murray-Darling Basin Agreement) and the Robbie Sefton (The Independent Assessment of Social and Economic Conditions in the Basin) reports. • First hand experience of how the Basin Plan and Water Trading Policies have exacerbated the impacts of drought. • An emerging awareness of the apparent over extraction of groundwater in the Murrumbidgee and the net loss of water out of the MIA due to intervalley trade during dry years. • This has resulted in lost productivity in the MIA as shown by the vastly reduced amount of rice grown last year – which has had flow on effects for job security in Leeton Shire. • A Sustainable Diversion Adjustment Mechanism Project on the Murrumbidgee River at Yanco Creek that is highly contentious but if not delivered will trigger further buybacks. • RAMJO (the Riverina and Murray Joint Organisation of Councils) has adopted a Water Position paper in an effort to identify solutions to address our collective concerns about water security in our irrigation communities.
Leeton Shire Council remains committed to the intent of the 2012 Murray Darling Basin Plan but we need to work actively to restore community confidence in the Murray Darling Basin Plan by holding governments accountable and advocating for improvements in its implementation. Water reform was never supposed to decimate thriving regional communities or industries such as those in the MIA, but was supposed to see smarter use of a precious water resource so that more water could be returned to the environment with no or little reduction in agricultural productivity.
The Federal Government needs to go back to first principles and honour their commitments when the National Water Initiative 2004 and Water Act 2007 were developed. These included:
• General Security water entitlements would not be eroded
• Water entitlements would not be affected by others’ carryover
• There would be increased certainty and reliability of water access for users
• The Government would bear the risks associated with reductions in water allocations arising from government policy.
5 LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
RECOMMENDATION
THAT Leeton Shire Council adopts a 10-point Water Policy Position Statement as follows:
1. Council supports the aspiration to achieve a Murray Darling Basin River System that is healthy and can sustainably support a prosperous irrigated agricultural sector and its communities. Council recognises that Climate Change makes the task more challenging.
2. Council aspires to growing the MIA’s agricultural production through comprehensive and sustainable use of all irrigable lands, the considered and careful application of water and ongoing research and development. Council aspires to MIA-held water entitlements remaining in the MIA, especially during dry or drought years, to service a diverse agricultural sector that has an appropriate balance of permanent and annual crops.
3. Council considers that any Plans, including the Murray Darling Basin Plan, need regular review and adjustment, including sensible adjustment of delivery timeframes as new information, new science, new opportunities and new risks come to light.
4. Council only supports interventions that achieve a healthy Basin without impacting the socio-economic wellbeing of communities. Wellbeing must be considered at a whole of community level, not only at the farm gate.
5. Council does not support any further buybacks of productive water and believes any further recovery needs to be associated with infrastructure projects that drive efficiency and water conservation. The cap on buybacks must be maintained and the 450ML ‘upwater’ target must never be pursued outside of the ‘neutrality test’.
6. Council calls for a more strategic, integrated and transparent approach to water management by the Federal and State Governments, as well as local irrigation companies. This includes:
• Honouring the principles of the National Water Initiative 2004 and Water Act 2007 by: o addressing the erosion of General Security water entitlements o making provisions to ensure Carryover does not impact water entitlements o reinstating certainty and reliability of water access for users, particularly those located in purpose-built irrigation areas • Improving understanding of how groundwater interfaces with rivers and its future management • Improving accountability of conveyance and other losses • Implementing more integrated management of our water resources.
6 LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020 7. Council calls for Federal and State funded resources to be directed to coordinating and implementing the findings of all water related enquiries since the Plan was commissioned, especially the findings of the Productivity Commission 2018.
8. Council calls for Federal and State Governments to resource the development of a fully integrated Agricultural Strategy, having regard to associated land use planning and the Basin Plan’s goal of ensuring water is used as efficiently as possible. In the interim, Council calls for a moratorium on agricultural developments involving permanent plantings south of the Barmah Choke requiring irrigation and for the establishment of a Sovereign Wealth Fund.
9. Council supports increased coordination and transparency of all policies and decisions related to water, including full and easily accessible visibility of all water trades and all allocation decisions.
10. Council calls for the effectiveness of environmental watering projects and the outcomes of efficiency projects (both on and off farm) to be closely monitored and fully reported, and adjustments made where regard to ensure project aims are being appropriately delivered and/or realised.
ATTACHMENTS
There are no attachments for this report.
7 LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020 GENERAL MANAGER’S MATTERS
ITEM 8.1 RAMJO BOARD MEETING MINUTES AND WATER POSITION STATEMENT
RECORD NUMBER 20/264
RELATED FILE NUMBER EF10/332
AUTHOR/S General Manager
APPROVER/S General Manager
SUMMARY/PURPOSE
The Riverina and Murray Joint Organisation (RAMJO) held Board meetings on 12 February 2020 and 13 May 2020. The Minutes of these meetings are presented for Councillors’ information.
RECOMMENDATION
THAT the Minutes of the RAMJO Board meetings of 12 February 2020 and 13 May 2020 be noted and the RAMJO Water Position Paper be received and endorsed.
REPORT
(a) Background
The Riverina and Murray Joint Organisation (RAMJO) has been proclaimed by the NSW State Government as a Body Corporate under the provisions of the Local Government Act 1993 and consists of eleven member councils.
Albury City Council Berrigan Shire Council Carrathool Shire Council Edward River Council Federation Council Griffith City Council Hay Shire Council Leeton Shire Council Murray River Council Murrumbidgee Shire Council Narrandera Shire Council
The principal functions of the Joint Organisation are:
1. To establish strategic regional priorities for the joint organisation area and to establish strategies and plans for delivering these priorities
8 LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020 2. To provide regional leadership for the joint organisation area and to be an advocate for the strategic regional priorities; and
3. To identify and take up opportunities for inter-governmental cooperation on matters relating to the joint organisation area.
(b) Discussion
The full Minutes are attached to this report.
It is noted that since the February and May Board meetings, RAMJO has in June 2020 released its final water position paper which is referenced in the attached minutes as being under preparation. The final water position paper is attached to this report for Councillor and community interest.
(c) Options
Nil – this report is for information only.
IMPLICATIONS TO BE ADDRESSED
(a) Financial
Council membership of RAMJO is in the adopted budget for 2020/21, being $25,000.
(b) Policy
Council will need to update its own water position paper to ensure it is current.
(c) Legislative/Statutory
Nil
(d) Risk
By working in collaboration, RAMJO Councils may have a better opportunity to successfully advocate on issues that are of common concern.
CONSULTATION
(a) External
Nil
(b) Internal
Nil for this report, however there is wide Leeton Shire Council staff engagement regarding freight strategies, engineering, waste management, health, renewable energy and economic development across RAMJO Councils.
9 LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020 LINK/S TO THE DELIVERY PROGRAM/OPERATIONAL PLAN (DPOP)
Under the Key Priority Area THEME 6 - “STRONG LEADERSHIP” within Council’s adopted Delivery Program/Operational Plan – 18 - A community that has politicians who act and listen - 18a is to “Forge and maintain strong regional relationships - Participate in Joint Organisation/RAMJO”. ATTACHMENTS
1⇩ RAMJO Board Minutes - 12 February 2020
2⇩ RAMJO Board Minutes - 13 May 2020
3 RAMJO Water Position Statement Final - June 2020 - Attached separately
10 LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.1 Attachment 1 - RAMJO Board Minutes - 12 February 2020 Page 11
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.1 Attachment 1 - RAMJO Board Minutes - 12 February 2020 Page 12
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.1 Attachment 1 - RAMJO Board Minutes - 12 February 2020 Page 13
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.1 Attachment 1 - RAMJO Board Minutes - 12 February 2020 Page 14
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.1 Attachment 1 - RAMJO Board Minutes - 12 February 2020 Page 15
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.1 Attachment 1 - RAMJO Board Minutes - 12 February 2020 Page 16
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.1 Attachment 1 - RAMJO Board Minutes - 12 February 2020 Page 17
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.1 Attachment 1 - RAMJO Board Minutes - 12 February 2020 Page 18
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.1 Attachment 1 - RAMJO Board Minutes - 12 February 2020 Page 19
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.1 Attachment 2 - RAMJO Board Minutes - 13 May 2020 Page 20
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.1 Attachment 2 - RAMJO Board Minutes - 13 May 2020 Page 21
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.1 Attachment 2 - RAMJO Board Minutes - 13 May 2020 Page 22
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.1 Attachment 2 - RAMJO Board Minutes - 13 May 2020 Page 23
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.1 Attachment 2 - RAMJO Board Minutes - 13 May 2020 Page 24
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.1 Attachment 2 - RAMJO Board Minutes - 13 May 2020 Page 25
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.1 Attachment 2 - RAMJO Board Minutes - 13 May 2020 Page 26
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.1 Attachment 2 - RAMJO Board Minutes - 13 May 2020 Page 27
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.1 Attachment 2 - RAMJO Board Minutes - 13 May 2020 Page 28
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.1 Attachment 2 - RAMJO Board Minutes - 13 May 2020 Page 29
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.1 Attachment 2 - RAMJO Board Minutes - 13 May 2020 Page 30
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.1 Attachment 2 - RAMJO Board Minutes - 13 May 2020 Page 31
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020 BUSINESS AND INVESTMENT MATTERS
ITEM 8.2 INVESTMENTS REPORT FOR JUNE 2020
RECORD NUMBER 20/259
RELATED FILE NUMBER EF10/137
AUTHOR/S Finance and Customer Service Coordinator
APPROVER/S Manager Finance Director Business and Investment
SUMMARY/PURPOSE
The purpose of this report is to provide details to the Councillors on the funds which have been invested during the month of June 2020.
RECOMMENDATION
THAT the information contained in the Investments Report for June 2020 be noted.
REPORT
(a) Background
This report is required to be prepared on a monthly basis and presented to the next available Ordinary Council Meeting in accordance with Clause 212 of the Local Government (General) Regulation 2005.
(b) Discussion
Leeton Shire Council has $24,025,859 invested with local bank branches and credit unions. This equates to 50.70% of the total investment portfolio as at 30 June 2020. The total current investment portfolio of $47,375,859 is invested in Approved Deposit Institutions (ADIs) which are regulated by the Australian Prudential Regulatory Authority (APRA).
Attached to this report is a Statement of Bank Reconciliation (Attachment 1) and a Summary of Investments (Attachment 2) as at 30 June 2020.
The Statement of Bank Reconciliation details what Council has in its bank account at 30 June 2020 (after taking into account unpresented cheques, unpresented deposits and unpresented debits) compared to what Council has in its general ledger as at 30 June 2020.
The Summary of Investments details all of the investments held by Leeton Shire Council as at 30 June 2020 (including the on-call account). It also details the institutions where the investments are held, how long the investments have been
32 LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020 held by amount and percentage and differentiates the investments between current (12 months or less) and non-current (over one year).
The table below details the monthly movements of investments for June 2020.
Opening balance as at 1 June 2020 $ 46,785,219 Less: Maturities (8) $ 7,110,000 Subtotal $ 39,675,219 Plus: Roll-overs (5) $ 4,110,000 New Investments (3) $ 3,000,000 Business Online Saver (BOS) movements $ 590,640 Closing balance as at 30 June 2020 $ $47,375,859
During June 2020, five investment maturities were rolled over, and three new investments were placed to take advantage of the best rates on the market on the day.
The following table details the investment holdings split between the Banks and Credit Unions.
Banks $43,375,859 Credit Unions $ 4,000,000 TOTAL $47,375,859
The following table details the break-up of investments according to the restrictions which are placed on them.
Total Investments $ 47,375,859 Less restrictions Water Supply $ 17,044,890 Sewerage Services $ 8,592,488 Other external restrictions $ 4,739,683 Internal restrictions $ 12,307,616 Total restrictions $ 42,684,677
Net unrestricted investments $ 4,691,182
Externally restricted funds can only be used for the purposes for which they were raised. These include water, sewer, domestic waste operations and unexpended specific purpose grants.
Internal restrictions are funds set aside by a Council resolution, usually through adoption of the Budget or as part of the Quarterly Budget Review process. Internally restricted funds can be set aside to fund specific items such as plant replacement, infrastructure renewal, unplanned building renewal or liabilities such as employee leave entitlements.
33 LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Unrestricted cash is used to provide working capital for Council to fund short-term operations and fluctuations in payables and receivables. The level of unrestricted cash can vary depending upon the level of outstanding creditors and debtors at month-end.
At its July meeting the Reserve Bank of Australia decided to maintain the current policy settings, including the targets for the cash rate and the yield on 3-year Australian Government bonds of 25 basis points.
The Reserve Bank of Australia Board recognised that the substantial, coordinated and unprecedented easing of fiscal and monetary policy in Australia was helping the economy through this difficult period caused by Covid-19. It was likely that this fiscal and monetary support would be required for some time. The Board remained committed to supporting jobs, incomes and businesses and to making sure that Australia is well placed for recovery. Its actions were keeping funding costs low and supporting the supply of credit to households and businesses. This accommodative approach would be maintained as long as required.
The average yield on Council investments for June 2020 fell to 1.63%, a drop of 0.15% from the 1.78% rate in May 2020. Investment interest rates are falling and will continue to do so for some time to come, according to economic forecasts. This impacts on Council’s average interest yield.
The following column graph compares monthly accrued interest with the original budgeted interest for each month.
The actual interest received for June 2020 of $64,641 is lower than the budget amount of $91,978 by $27,337.
34 LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020 The following line graph compares year-to-date interest with the original budgeted interest for the period. This shows that Council’s actual investment income is tracking lower than the original budget as at 30 June 2020.
The following tables provide information on investment rates this year compared to last year, as well as a comparison of investment balances from this year to last year:
Performance Measures This Year Last Year Portfolio Average Interest Rate (year to date) 2.22% 2.81%
Investment Balances This Year Last Year Opening Balance as at 1 June $46,785,291 $42,175,866 Current Balance as at 30 June $47,485,859 $44,277,105
Lehman Brothers
Lehman Brothers Australia Dividend Payment Update:
There have been no updates for June 2020.
(c) Options
Nil – this report is for information only.
35 LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
IMPLICATIONS TO BE ADDRESSED
(a) Financial
The rate of return across the portfolio is 1.63% for June 2020. The budgeted percentage for the 2019/20 Financial Year is 3.0%.
The level of funds is higher than expected in Council’s total investment portfolio, but interest earned is tracking lower than the original budget due to the lower interest rates that Council is currently receiving.
The consolidated actual investment income from 1 July 2019 to 30 June 2020 compared to the budgeted annual investment interest from 1 July 2019 to 30 June 2020 is detailed below:
Actual Interest Earned from 1 July 2019 to 30 June 2020 $1,006,417
Budgeted Interest – 1 July 2019 to 30 June 2020 $1,103,732 Variance - Negative -$97,315
(b) Policy
All funds are invested in accordance with Leeton Shire Council’s Investment Policy. Investments are to be considered in conjunction with the following key criteria:
• No Institution at any time shall hold more than 45% of Council’s total investments. The maximum percentage will be determined by the short-term rating of the institution: A1+ up to 45%, A1 up to 35%, and A2 up to 30%.
• The Trustee Act 1925 provides for investments with Building Societies and Credit Unions. While they are not rated, they are now covered under Financial Prudential legislative controls.
• The maximum amount of funds invested with a Building Society/Credit Union will be 5% of Council’s total investments at the time the investment was placed. Not more than 40% of Council’s total portfolio should be held with Building Societies/Credit Unions at the time of placing each investment.
• Council’s investments should be placed in an appropriate mixture of short-term (0–1 year) and medium term (1–5 years) categories according to Council’s funding requirements and risk profile at the time of placing each investment.
Council’s Portfolio Compliance
Asset Allocation
The majority of the portfolio is directed to Fixed-Term Deposits (73.94%), followed by the overnight cash account with the Commonwealth Bank of Australia (16.90%).
36 LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020 The remainder of the portfolio is held in Floating Rate Notes (9.16%).
Term to Maturity
Overall, the portfolio remains lightly diversified from a maturity perspective with deposits maturing out to five years.
Counterparty
At 30 June 2020, Council did not have an overweight position to any single Authorised Deposit Taking Institution. The portfolio is well-diversified across the entire credit spectrum, including the unrated Authorised Deposit Taking Institution.
Credit Quality
The portfolio remains well-diversified from a credit ratings perspective, with the portfolio spread across the entire credit spectrum.
All aggregate ratings categories are within the Policy limits.
The following table details the credit rating of each of the categories where Council has money invested. All investments are compliant with Council’s Investment Policy.
Max. Limit Compliant Credit Rating Invested ($) Invested % (%) Available ($) Yes AA Category $16,741,378 35.33% 100.00% $30,646,581 Yes A Category $3,500,000 7.39% 100.00% $43,887,959 Yes BBB Category $23,146,581 48.84% 100.00% $24,241,378 Yes Unrated ADI's $4,000,000 8.44% 40.00% $14,955,184 $47,387,959 100.00%
Note: Valuations of Council’s senior Floating Rate Notes (FRN) on the Imperium Markets platform are marked-to-market and priced on a daily basis from an independent third-party provider. Council has recorded its FRNs internally at the purchase price or face value. As such, the total portfolio’s balance is likely to differ as at the reporting date.
A credit rating is an evaluation of the credit risk of a prospective financial institution predicting their ability to pay back the investment and interest at maturity and an implicit forecast of the likelihood of the institution defaulting.
The credit ratings are an opinion based on the credit-worthiness of the company issuing the security and are assigned by Australian Ratings based on publicly available information at a point in time.
If a company is unrated, it does not necessarily mean that its interest rate securities are high risk, but it does mean that investors will have to turn to other means to evaluate its financial strength or the security's complexity. Council utilises its investment advisors to gather company research data to ensure that due diligence is performed for all of its investments.
37 LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020 (c) Legislative/Statutory
All funds are invested in accordance with Section 625 of the Local Government Act 1993 and the Ministerial Investment Order.
Clause 212 of the Local Government (General) Regulation 2005 requires an Investment Report to be prepared monthly and presented to the next available Ordinary Council Meeting.
(d) Risk
The following table provides information on investment types including a risk assessment and the amount and percentage invested compared to the total investment portfolio.
Risk Assessment Amount Investment Type % of Portfolio Capital Interest $'000 Term Deposits Low Low 35,110 73.94 Cash/At Call Deposits Low Low 8,026 16.90 Floating Rate Notes Low Low 4,350 9.16
TOTAL 47,486 100.00
CONSULTATION
(a) External
Council’s investment advisors are Amicus Advisory and Imperium Markets. Both investment advisors were contacted by staff for advice during the month of June 2020.
(b) Internal
No additional internal consultation was undertaken.
LINK/S TO THE DELIVERY PROGRAM/OPERATIONAL PLAN (DPOP)
Under the Key Priority Area THEME 6 - “STRONG LEADERSHIP” within Council’s adopted Delivery Program/Operational Plan – 20 - A community that is always on the front foot - 20a is to “Ensure the aspirations of the community are delivered - Operate an efficient and effective Local Government Administration."
ATTACHMENTS
1⇩ Statement of Bank Reconciliation - 30 June 2020
2⇩ Summary of Investments - 30 June 2020
38 LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.2 Attachment 1 - Statement of Bank Reconciliation - 30 June 2020 Page 39
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.2 Attachment 2 - Summary of Investments - 30 June 2020 Page 40
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.2 Attachment 2 - Summary of Investments - 30 June 2020 Page 41
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.2 Attachment 2 - Summary of Investments - 30 June 2020 Page 42
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.2 Attachment 2 - Summary of Investments - 30 June 2020 Page 43
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020 ITEM 8.3 ENDORSEMENT OF THE DRAFT FINANCIAL HARDSHIP POLICY AND DRAFT DEBT RECOVERY POLICY JULY 2020
RECORD NUMBER 20/265
RELATED FILE NUMBER EF10/492
AUTHOR/S Manager Finance
APPROVER/S Director Business and Investment
SUMMARY/PURPOSE
This report provides information to Council on the Draft Financial Hardship Policy (Attachment 1) and the Draft Debt Recovery Policy July 2020 (Attachment 2) which are presented for endorsement by Council.
RECOMMENDATION
THAT Council:
1. Endorses the DRAFT Financial Hardship Policy July 2020.
2. Endorses the DRAFT Debt Recovery Policy July 2020.
3. Places the DRAFT Financial Hardship Policy and the DRAFT Debt Recovery Policy on Public Exhibition for a period of 28 days from Friday, 24 July 2020 for community comment. Should there be no submission received by Council at the completion of this period, the Financial Hardship Policy and Debt Recovery Policy become adopted.
REPORT
(a) Background
The current Financial Hardship Policy, Debt Recovery Water and Debt Management Rates Sundry Debtors were adopted as part of a suite of policies updated by Council on 22 February 2017 (Resolution Number 17/018).
As part of the cycle of ongoing review and update and the introduction of Debt Recovery and Hardship guidelines, these policies are now due for revision.
(b) Discussion
The attached draft policies have been developed in consultation with key staff across Council who undertake the debt recovery and financial hardship processes on behalf of Council. Staff have previously maintained a separate document for financial hardship but have combined the two previous debt recovery policies into
44 LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020 one to ensure that all departments of Council that deal with debt recovery are included.
The attached draft policies reflect the requirements of the Office of Local Government Debt Management and Hardship Guidelines, as well as Leeton Shire Council’s commitment to fair, equitable and compassionate treatment of ratepayers and customers including those who are facing hardship, when recovering outstanding debts.
The draft policies identify the requirements associated with debt recovery and addressing financial hardship. The also provide guidance to ensure Council staff tasked with debt recovery are clear about Council’s expectations in relation to the administration and treatment of Council’s debtors, who may or may not be suffering financial hardship. They also provide guidance around the efficient use of Council resources.
While the policies establish Council’s approach to debt recovery and financial hardship the operational or process driven elements have been articulated in an internal procedural document.
(c) Options
1. Endorse the Draft Financial Hardship Policy July 2020 as recommended.
2. Endorse the Draft Debt Recovery Policy July 2020 as recommended.
3. Another resolution as determined by Council.
IMPLICATIONS TO BE ADDRESSED
(a) Financial
Costs associated with the review of Council policies will be limited to those policies which are required to be advertised in accordance with Section 160 of the Local Government Act 1993 and will be met from the adopted budget for 2020/21.
(b) Policy
Financial Hardship Policy Debt Recovery Water Debt Management Rates Sundry Debtors
(c) Legislative/Statutory
Local Government Act 1993 –
• SECT 546 How is a rate or charge levied • SECT 562 Payment of rates and annual charges • SECT 564 Agreement as to periodical payment of rates and charges • SECT 566 Accrual of Interest on overdue rates and charges • SECT 567 Writing off of accrued interest
45 LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020 • SECT 570 Transfer of land in payment of rates or charges • SECT 577 Extension of concession to avoid hardship • SECT 582 Abandonment of pensioner rates and charges • SECT 583 Who may apply for postponement of rates • SECT 601 Hardship resulting from certain valuation changes • SECT 710 Service of notices on persons • SECT 713 Sale of land for unpaid rates and charges
Local Government (General) Regulation 2005 –
• Cl. 127 Rates and charges notices
Office of Local Government Debt Management and Hardship Guidelines, November 2018.
(d) Risk
In adopting these policies, Council will be reducing the risk of:
• Mismanagement in the recovery of debt • Placing further stress on ratepayers and other debtors suffering financial hardship.
CONSULTATION
(a) External
Council’s debt recovery agents - Outstanding Collections Pty Ltd.
(b) Internal
Senior Management Team Manager Community Services Senior Rates Officer Revenue Officer
LINK/S TO THE DELIVERY PROGRAM/OPERATIONAL PLAN (DPOP)
Under the Key Priority Area THEME 6 - “STRONG LEADERSHIP” within Council’s adopted Delivery Program/Operational Plan – 20 - A community that is always on the front foot - 20a is to “Ensure the aspirations of the community are delivered - Operate an efficient and effective Local Government Administration”. ATTACHMENTS
1⇩ Draft Financial Hardship Policy July 2020
2⇩ Draft Debt Recovery Policy July 2020
46 LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.3 Attachment 1 - Draft Financial Hardship Policy July 2020 Page 47
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.3 Attachment 1 - Draft Financial Hardship Policy July 2020 Page 48
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.3 Attachment 1 - Draft Financial Hardship Policy July 2020 Page 49
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.3 Attachment 1 - Draft Financial Hardship Policy July 2020 Page 50
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.3 Attachment 1 - Draft Financial Hardship Policy July 2020 Page 51
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.3 Attachment 1 - Draft Financial Hardship Policy July 2020 Page 52
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.3 Attachment 1 - Draft Financial Hardship Policy July 2020 Page 53
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.3 Attachment 1 - Draft Financial Hardship Policy July 2020 Page 54
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.3 Attachment 1 - Draft Financial Hardship Policy July 2020 Page 55
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.3 Attachment 1 - Draft Financial Hardship Policy July 2020 Page 56
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.3 Attachment 1 - Draft Financial Hardship Policy July 2020 Page 57
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.3 Attachment 1 - Draft Financial Hardship Policy July 2020 Page 58
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.3 Attachment 1 - Draft Financial Hardship Policy July 2020 Page 59
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.3 Attachment 2 - Draft Debt Recovery Policy July 2020 Page 60
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.3 Attachment 2 - Draft Debt Recovery Policy July 2020 Page 61
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.3 Attachment 2 - Draft Debt Recovery Policy July 2020 Page 62
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.3 Attachment 2 - Draft Debt Recovery Policy July 2020 Page 63
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.3 Attachment 2 - Draft Debt Recovery Policy July 2020 Page 64
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.3 Attachment 2 - Draft Debt Recovery Policy July 2020 Page 65
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.3 Attachment 2 - Draft Debt Recovery Policy July 2020 Page 66
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.3 Attachment 2 - Draft Debt Recovery Policy July 2020 Page 67
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.3 Attachment 2 - Draft Debt Recovery Policy July 2020 Page 68
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.3 Attachment 2 - Draft Debt Recovery Policy July 2020 Page 69
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.3 Attachment 2 - Draft Debt Recovery Policy July 2020 Page 70
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020 OPERATIONAL MATTERS
ITEM 8.4 PROPOSED ROAD CLOSURE AND SALE - PART MAHER ROAD LEETON
RECORD NUMBER 20/258
RELATED FILE NUMBER EF10/396
AUTHOR/S Property Coordinator and Native Title Manager
APPROVER/S Director Operations
SUMMARY/PURPOSE
The purpose of this report is to request Council to authorise the close of a section of Maher Road, and sale to Mr and Mrs P Draper (an adjoining owner).
RECOMMENDATION
THAT Council:
1. Supports in principle the closure of a Council public road being Maher Road Leeton, as shown on the attached map.
2. Advertises under the Roads Act 1993 the proposal to close the section of Maher Road.
3. Provided no objections are received from adjoining owners or notifiable authorities for the closure of the section of road, authorises the sale to Mr and Mrs P Draper for market value.
REPORT
(a) Background
A formal proposal for the closure of a section of Maher Road Leeton and the purchase at market value was received from Mrs and Mrs P Draper in May 2019.
The section of road that is proposed to be closed and sold adjoins properties owned by Mrs and Mrs Draper and is used only for access to their own farming lots.
(b) Discussion
The area of road proposed to be sold is approximately 41,025m2 and is a formed earth road maintained by Council. All farming land both north and south of Maher Road is owned by Mr and Mrs Draper.
71 LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020 Council’s Engineering Department has confirmed that the road does not have any strategic value and Council has no interest in the continued ownership, maintenance responsibility or legal liability for the road.
A valuation to determine market value to be paid to Council for the road will be undertaken as a component of the process. Both the market value and any associated costs for the closure of the road will be fully paid by Mrs and Mrs Draper.
(c) Options
Option 1.
1. Council supports in principle the closure of a Council public road being Maher road as shown on the attached map.
2. Council authorises the sale of the closed road to Mrs and Mrs P Draper for market value.
Option 2.
1. Council refuses the closure application on reasonable grounds.
IMPLICATIONS TO BE ADDRESSED
(a) Financial
All relevant costs are to be paid by Mr and Mrs Draper. Income will be derived from the sale of the land, the value of which is yet to be determined but it will be full market value.
(b) Policy
Nil
(c) Legislative/Statutory
Roads Act 1993
(d) Risk
There is a risk that neighbours or a notifiable authority will object to the sale. If an objection is received it will be addressed through consultation. Any objections will be brought back to Council for consideration if they cannot be addressed through consultation.
CONSULTATION
(a) External
Mr and Mrs P Draper
72 LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020 Neighbours and users of Maher Road as well as notifiable authorities will be notified as a component of due process for proposed road closures.
The intention to close the road will be advertised in the Irrigator for a period of 28 days.
Any objections received that cannot be resolved through facilitated discussion by Council staff will be submitted to Council for resolution.
(b) Internal
Manager Roads and Drainage
LINK/S TO THE DELIVERY PROGRAM/OPERATIONAL PLAN (DPOP)
Under the Key Priority Area THEME 6 - “STRONG LEADERSHIP” within Council’s adopted Delivery Program/Operational Plan – 20 - A community that is always on the front foot - 20a is to “Ensure the aspirations of the community are delivered - Operate an efficient and effective Local Government Administration." ATTACHMENTS
1⇩ Proposed Area of Road Closure Part Maher Road Leeton
73 LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Item8.4 Attachment 1 - Proposed Area of Road Closure Part Maher Road Leeton Page 74
LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020 COUNCILLOR ACTIVITY REPORTS
ITEM 10.1 COUNCILLOR ACTIVITY REPORT
RECORD NUMBER 20/262
RELATED FILE NUMBER 10/130
AUTHOR Executive Assistant to the General Manager and Mayor
RECOMMENDATION
THAT Council notes the Councillor Activity Reports for 25 June – 21 July 2020.
Cr Paul Maytom
26 June 2020 Murray Darling Association (MDA) Region 9 Meeting, Councils/MLHD Teleconference 1 July 2020 Webinar with Minister for Families, Communities and Disability Services, Seasonal Workers Programme Submission with Ken Dachi and Deputy Mayor 2 July 2020 Meeting with Hon Sussan Ley MP 3 July 2020 RAMJO Extraordinary Board Meeting 6 July 2020 Visit by Drought and Flood Coordinator General The Hon Shane Stone AC QC 7 July 2020 Meeting with Riverina Development Australia (RDA) 8 July 2020 Councillor Workshop 9 July 2020 Leeton Connect Board Meeting 13 July 2020 Book launch with 2018 Australia Day Ambassador Brian Debus 16 July 2020 LGNSW Water Forum, Leeton LHAC Meeting 20 July 2020 MDA Board Meeting, RAMJO Meeting with Helen Dalton MP 22 July 2020 RAMJO Meeting with MDBA
Cr George Weston
26 June 2020 Murray Darling Association (MDA) Region 9 Meeting 1 July 2020 Seasonal Workers Programme Submission with Mayor and Ken Dachi 8 July 2020 Councillor Workshop 13 July 2020 Book launch with 2018 Australia Day Ambassador Brian Debus 22 July 2020 Ordinary Council Meeting
Cr Paul Smith
8 July 2020 Councillor Workshop
75 LEETON SHIRE COUNCIL Ordinary Council Meeting - Wednesday 22 July 2020
Cr Tony Reneker
8 July 2020 Leeton Men’s Shed Meeting 9 July 2020 Leeton Connect Board Meeting
76