NOTICE OF Council MEETING

 

PUBLIC AGENDA – SUPPLEMENTARY  A

 

An Ordinary Meeting of City of Parramatta Council will be held in PHIVE (COUNCIL CHAMBER)  COUNCIL CHAMBER AT 5 PARRAMATTA SQUARE, PARRAMATTA on Monday, 23 October 2023 at 6:30PM.

 

 

 

 

Gail Connolly PSM

CHIEF EXECUTIVE OFFICER

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Council                                                                    23 October 2023

 

 

 

 

TABLE OF CONTENTS

 

ITEM                                                SUBJECT        PAGE NO

 

 

13      Reports to Council - For Council Decision

13.8          LATE REPORT: Presentation of the Audited 2022-2023 Annual Financial Statements........................................ 3

15      Questions with Notice

15.1          Questions Taken on Notice at the 9 October 2023 Council Meeting....... 123

 

After the conclusion of the Council Meeting, and if time permits, Councillors will be provided an opportunity to ask questions of staff.

 

 

 


Council 23 October 2023                                                              Item 13.8

REPORTS TO COUNCIL - FOR COUNCIL DECISION

ITEM NUMBER        13.8

SUBJECT                 LATE REPORT: Presentation of the Audited 2022-2023 Annual Financial Statements

REFERENCE           F2022/03176 - D09160373

REPORT OF            Acting Financial Accounting, Treasury & Payables Manager        

 

 

PURPOSE:

 

The purpose of this report is for the Council to receive and authorise the audited 2022-23 Annual Financial Statements for the year ending 30 June 2023, and to receive the Auditor’s Report from the Audit Office of New South Wales.

 

RECOMMENDATION

 

(a)    That Council authorises the Lord Mayor, Deputy Lord Mayor, Chief Executive Officer and Responsible Accounting Officer to sign the following:

 

1.     2022-23 General Purpose Financial Statements – Statement by Councillors and Management;

 

2.     2022-23 Special Purpose Financial Statements – Statement by Councillors and Management

 

(b)    That Council receive and note the Draft Engagement Closing Report for the 2022-23 Annual Financial Statements.

 

(c)    That Council authorises the release of the audited 2022-23 Annual Financial Statements to the Office of Local Government and for public exhibition.

 

BACKGROUND

 

1.     Council’s audited 2022-23 Annual Financial Statements for the year ended 30 June 2023 have been completed and are submitted to Council for authorisation and formal referral to the Audit Office of New South Wales.

 

2.     Council’s 2022-23 Annual Financial Statements include the following:

a)     The General Purpose Financial Statements

b)     The Special Purpose Financial Statements

c)     The Special Schedules.

 

3.     The 2022-23 Annual Financial Statements were presented to the Audit, Risk and Improvement Committee (ARIC) on 19 October 2023. The ARIC recommended that the 2022-23 Annual Financial Statements be approved by Council subject to amendments as contained within the ARIC minutes, which have been updated.

 

4.     The 2022-23 Annual Financial Statements were presented to the Finance Committee on 18 October 2023. The Finance Committee endorsed the Financial Statements to be presented for authorisation to the Council Meeting on 23 October 2023.

 

5.     The 2022-23 Annual Financial Statements are attached to this report. Once Council has approved the Financial Statements and the delegated persons sign the statements, the Independent Auditor’s report will be finalised and released.

 

6.     A representative of the Audit Office of New South Wales will present the Independent Auditor’s Report and answer any questions at the Council meeting to be held on 20 November 2023.

 

7.     Section 420 of the Local Government Act 1993, requires Council to make the audited financial reports and auditor reports available for public submissions. Submissions must be in writing and lodged with Council within seven (7) days after being made available. A Council Report will be provided summarising the submissions received.

 

ISSUES/OPTIONS/CONSEQUENCES

 

8.     Attachment 1 to this report contains the General-Purpose Financial Statements for the year ended 30 June 2023 which include the statutory financial statements along with associated notes.  Also included are the Special Purpose Financial Statements for the year ended 30 June 2023 (Attachment 2) and Special Schedules for the year ended 30 June 2023 (Attachment 3).  These reports are prepared in accordance with the requirements under the Office of Local Government Code of Accounting Practice and Financial Reporting.

 

9.     The 2022-23 Annual Financial Statements outline Council’s statutory financial performance and position in accordance with Australian Accounting Standards. They are designed for the general purpose of allowing external parties and the community to understand the overall financial performance and position of the Council, and to compare its financial performance with other similar organisations.

 

10.   Included below are the key highlights from the Statements.

 

Financial Performance

 

Council’s net operating result before capital grants and contributions for the financial year 2022-23 is a surplus of $33.7m, which is a reduction of ($8.2m) from $41.9m in 2021-22.


Total Income from Continuing Operations increased by $10.3m from 2021-22, driven by:

·    $9.5m increase in User Charges & Fees from strong post-Covid-19 recovery in income from parking stations, meters, road permits, childcare and venues/performances.

·    $7.2m increase in Rates and Annual Charges.

·    $4.5m increase in Other Revenues driven by 9 Wentworth Street lease income, and uplift in infringement revenue from easing of Covid-19 travel restrictions.

·    $1.1m increase in Operating Grants and Contribution mostly attributable to an increase in the amount received in advance for the Financial Assistance Grant.

·    ($20.3m) decrease in Capital Grants and Contributions due to the 2021-22 recognition of tied income received for Parramatta Aquatic Centre, Parramatta Road Urban Amenities Improvement Program completion of milestones, and Epping to Carlingford Cycleway.

·    $3.7m increase in Interest and Investment Income driven by strong rebound in shares and improved returns on Term Deposit, Long Term & Growth Funds.

·    $27.4m increase in Other Income driven by significant increase in assets handed over under the Parramatta Light Rail (PLR) agreement with Transport for NSW (stage 1 hand over now complete).

 

Total Expenses from Continuing Operations increased by ($38.7m) from 2021-22, driven by:

·    ($17.3m) increase in Employee Benefits and On-costs primarily due to lower vacancies, and award pay increases.

·    ($9.9m) increase in Materials and Services resulting from increased consultancies, ICT Maintenance, legal fees, cleaning, and security services.

·    $0.5m decrease in Borrowing Costs from reduced interest payments made for the Parramatta Square Loan, which was fully repaid.

·    ($10.2m) increase in Depreciation, Amortisation and Impairment of non-financial assets driven by the 2021-22 indexation of assets, a net decrement on revaluation of footpath assets, and higher depreciation arising from the increase in asset additions.

·    $2.5m decrease in Other Expenses driven by a Fair Value increment on investments in 2022-23 (recognised in Other Income) compared to a Fair Value decrement in 2021-22.

·    ($4.2m) increase in Net Loss from the Disposal of Assets, mainly the disposal of footpaths arising from PLR.

 

Council’s cash and investments decreased by ($38.6m) from $551m to $512m (including investments to Civic Risk). This decrease is mainly due to the utilisation of internal restrictions, particularly from the Property Reserve, to fund major capital projects such as PHIVE, Town Hall, Public Domain, and Parramatta Aquatic Centre.

 

Council’s receivables mainly consist of the sale of 6&8 Parramatta Square land $98.4m.

 

The increase in Infrastructure, property, plant, and equipment (IPPE) is primarily driven by a 6.6% indexation of assets resulting from a high-level assessment of Gross Replacement Cost and the determination that there is no material change in asset condition. The Capital WIP (Work In Progress) balance decreased mainly due to the completion of PHIVE building and Public Domain construction costs.
 

Council’s loan liability decreased from $12.5m to $2.8m during 2022-23, a total of $9.7m. There were no new loans during 2022-23.

 

Special Purpose Financial Statements

 

Council identified its Multi-level Car Park operations and Commercial Property Portfolio as Category 1 in accordance with the requirement of National Competition Policy (NCP) guidelines.

 

Special Schedule – Report on Infrastructure

 

The purpose of this schedule is to allow an assessment of the condition of Council’s public Works’ assets and how Council is performing in managing these assets. 

 

ISSUES/OPTIONS/CONSEQUENCES

 

11.   Audited Financial Statement must be submitted to the Office of Local Government by 31 October 2023.

 

12.   Council is required to authorise the financial statements and send them to the NSW Audit Office before we can receive the final Auditors report.

 

13.   Within five (5) weeks, the NSW Audit Office will attend Council to present to their final overview of the financial statements and other financial matters arising.

 

CONSULTATION & TIMING

 

Stakeholder Consultation

 

14.   The following stakeholder consultation has been undertaken in relation to this matter:

 

Date

Stakeholder

Stakeholder Comment

Council Officer Response

Responsibility

18 October 2023

Finance Committee

Endorsed for Council adoption

n/a

Executive Director, F&I

 

Councillor Consultation

 

15.   The following Councillor consultation has been undertaken in relation to this matter:

 

Date

Councillor

Councillor Comment

Council Officer Response

Responsibility

19 October 2023

Audit, Risk. and Improvement Committee

Approved subject to amendments as contained within the ARIC minutes.

Updated.

Executive Director, F&I

 

 

LEGAL IMPLICATIONS FOR COUNCIL

 

16.   There are no legal implications for Council associated with this report.

 

FINANCIAL IMPLICATIONS FOR COUNCIL

 

17.   If Council resolves to approve this report in accordance with the proposed resolution, there are no financial impacts on the budget.

 

18.   The table below summarises the financial impacts on the budget arising from approval of this report.

 

 

FY 22/23

FY 23/24

FY 24/25

FY 25/26

Operating Result

 

 

 

 

External Costs

 

 

 

 

Internal Costs

 

 

 

 

Depreciation

 

 

 

 

Other

 

 

 

 

Total Operating Result

Nil

Nil

Nil

Nil

 

 

 

 

 

Funding Source

 

 

 

 

 

 

 

 

 

CAPEX

 

 

 

 

CAPEX

 

 

 

 

External

 

 

 

 

Internal

 

 

 

 

Other

 

 

 

 

Total CAPEX

Nil

Nil

Nil

Nil

 

 

 

 

 

Funding Source

 

 

 

 

 

Dileesha Goonetilleke

Acting Financial Accounting, Treasury & Payables Manager

 

Amit Sharma

Chief Financial Officer

 

John Angilley

Executive Director Finance & Information

 

Gail Connolly

Chief Executive Officer

 

 

 

 

Attachments:

1

Attachment 1 - Audited General Purpose Financial Statements 2022-23

 

 

2

Attachment 2 - Audited Special Purpose Financial Statements 2022-23

11 Pages

 

3

Attachment 3 - Special Schedules 2022-23

7 Pages

 

4

Attachment 4 - DRAFT FA1776 Engagement Closing Report 2023

20 Pages

 

 

 

REFERENCE MATERIAL

 


Item 13.8 - Attachment 1

Attachment 1 - Audited General Purpose Financial Statements 2022-23

 

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Item 13.8 - Attachment 2

Attachment 2 - Audited Special Purpose Financial Statements 2022-23

 

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Item 13.8 - Attachment 3

Attachment 3 - Special Schedules 2022-23

 

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Item 13.8 - Attachment 4

Attachment 4 - DRAFT FA1776 Engagement Closing Report 2023

 

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Council 23 October 2023                                                              Item 15.1

QUESTIONS WITH NOTICE

ITEM NUMBER        15.1

SUBJECT                 Questions Taken on Notice at the 9 October 2023 Council Meeting.

REFERENCE           F2022/03176 - D09171907

REPORT OF            Council Secretariat & Policy Officer        

 

 

 

 

QUESTIONS WITH NOTICE

 

Clr Pandey asked a question on Item 13.2 Deferred from OCM 28 August 2023 – Audit of Sporting Facilities and Amenities (Female Friendly)

 

·    Regarding State and Federal funding, how much funding has Council received throughout this term of Council regarding upgrading of sporting facilities and amenities (specifically ‘female friendly’)?

 

Acting Executive Director City Assets and Operations Response

 

Council has received approximately $7,530,881 in grants for six (6) separate projects that can be directly linked to improving ‘female friendly’ participation including pavilion/amenities and other works.

 

The below projects have specifically mentioned ‘female friendly’ improvements within the grant applications or were focused on a ‘female friendly’ outcome. 

 

Name of Grant

Provider

Project

Amount

ATP Tennis Legacy Fund 

State Government and Tennis NSW 

Timbergetters Reserve - Tennis Lighting 

$16,204

Greater Cities Sports Facility Fund 2020/21 

State Government 

Peggy Womersley Reserve -Sportsground Pavilion 

$1,000,000

Greater Cities Sports Facility Fund 2021/22 

State Government 

Newington Reserve -Sportsground Pavilion 

$1,000,000

West Invest 

State Government 

Somerville Park -Sports Field Lighting  

$200,000 for improved lighting from a total project cost $4,570,103 

West Invest 

State Government 

Max Ruddock -Reserve Amenities Building  

$5,200,000 (for total project) 

Female Friendly Community Sports Facilities 

State Government  

Caber Park Tennis Court lighting   

$114,677

 

 

Total 

$7,530,881 

 

Additionally, projects that have received grant funding of over $18,000,000 for sporting infrastructure that provided improvements for all genders, however did not specifically call out ‘female friendly’ participation within the grant application, include; 

 

Name of Grant

Provider

Project

Amount

LRCI Round 1 

Federal Government 

Caber Park Court - Re-Surfacing 

$80,000

LRCI Round 2 

Federal Government 

Dundas Park - Multi-Purpose Court 

$250,000

Multi-Sport Facility Fund 

State Government: Office of Sport 

Newington Reserve -Sport and Recreation Facility   

$5,000,000

West Invest  

State Government  

Doyle Ground -Sporting Field Re-build  

$8,317,000 (for total project) 

West Invest 

State Government 

Somerville Park -Sports Field  

$4,570,103 (for total project)

 

 

Total 

$18,217,103 

 

 

 

Deputy Lord Mayor, Clr Prociv asked a question on Item 13.4 Rate Category Adjustments

 

·    Can a report be provided to Council on how any staggered rate increases would work?

 

Executive Director Finance and Information Response

 

A report will be prepared in coming months along with additional discussion opportunities at an upcoming Finance Committee and workshop/s.

 

 

Clr Garrard asked a question on Urgency Motion - Provision of Disabled Parking Facilities

 

·    When is the Car Parking Strategy due to be submitted to Council?

 

Acting Executive Director Property and Place Response

 

The CBD Carpark Strategy was adopted by Council in April 2022 with a suite of short, medium and long-term actions to enhance the CBD car parking experience (https://participate.cityofparramatta.nsw.gov.au/cbd-parking).

 

Council staff are continuing to work through the implementation of the multi-level and on-street car park upgrades including both technology and physical upgrades. The CBD Carpark Strategy is not scheduled for review in 2023 as it is in the implementation phase, though progress of delivery against the short-term and medium-term actions will be reviewed in 2024.

 

The long-term action (two years +) is to “develop a feasibility study for the redevelopment of the former Fennell Street car park site as a commercial development that includes public parking.”

 

 

Clr Darley asked a question on Item 15.2 Protection from Extreme Heat

 

·    Does Council still run the proactive program “Cool Parramatta”?

 

Executive Director Community Services Response 

 

Council no longer runs the Cool Parramatta Project. While the Cool Parramatta Project has come to an end, Council will be delivering a communications campaign to promote awareness around heat risk for the community.

 

 

 

 

 

Attachments:

There are no attachments for this report.

 

REFERENCE MATERIAL