NAMBUCCA SHIRE COUNCIL

 

 

Ordinary Council Meeting - 19 March 2009

 

LATE AGENDA                                                                                        Page

 

9        General Manager Report

9.8     Report on Investments to 28 February 2009

11      Director Engineering Services Report

11.4   Nambucca District Water Supply Steering Committee Meeting - 4 March 2009   



Ordinary Council Meeting

19 March 2009

General Manager's Report

ITEM 9.8      SF394              190309         Report on Investments to 28 February 2009

 

AUTHOR/ENQUIRIES:     Faye Hawthorne, Accountant         

 

SUMMARY:

 

Return on investments to 28th February 2009 is ($329,363.23).

 

During the month of February term deposit rates were around 3% to 4%. with special rates offered on some days of 4.% to 4.40% between 90 days and 180 days.

 

All of the Managed Funds showed negative returns for the month, particularly Blackrock Diversified Credit Fund ($76,652), Aberdeen ($44,498) and TCorp ($44,234).  ANZ (on call Account) had a very small positive return.

 

These are some quotes from Council’s Managed Fund Advisors from their Economic and Market commentary February 2009:

 

“The deteriorating global economy continues to be exacerbated by the bleak outlook for growth”.

 

“After a period of relative stability, the broader credit indices moved wider as investors reacted negatively to the uncertainty surrounding the US stimulus package’’.

“The RBA’s decision to cut interest rates aggressively resulted in the Australian dollar falling to around US63 cents in early February before finishing the month at around US65 cents as the RBA hinted of more modest cuts going forward’’.

 

“The outlook remains uncertain with significant risks still lurking in the global economy”.

 

 

Recommendation:

 

That the Accountants’ Report on Investments placed to 28 February 2009 be noted.

 

OPTIONS:

 

This report is for information only.

 

DISCUSSION:

 

This report details all the investments placed during February and Council funds invested as at 28 February 2009.

 


 

1   Investments Placed 1 to 28 February 2009

 

 

 

 

 

 

 

 

 

 

Date

 Amount

Period (Days)

Quotes

%

Accepted

 

13.02.09

 $  1,083,271.23

181

IMB

4.10%

4.10%

IMB

Macquarie

4.00%

Bankwest

3.75%

Suncorp

3.65%

 

 

 

 

 

 

 

 

 

Date

 Amount

Period (Days)

Quotes

%

Accepted

 

17.02.09

 $    641,839.35

103

BBC

4.40%

4.40%

BBC

Bankwest

3.85%

Suncorp

4.25%

Macquarie

4.30%

 

 

 

 

2  Investments Matured & Interest & Returns 1 to 28 February 2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term Deposits/Bank Bills

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Institution

 Amount

Period (Days)

Rate

 Interest

 

 

 

IMB

 $  1,000,000.00

364

8.35%

 $52,302.59

(30968.64 - Accrued Interest)

 

BBC

 $     615,508.24

154

8.35%

 $26,331.11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Managed Funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Institution

 Amount

Period (Days)

Performance for Month

Returns This Month

Annualised Performance FYTD

Returns FYTD

 

ANZ

$523,316.09

28

0.10%

$497.14

2.00%

$5,756.87

 

Aberdeen

$  3,158,541.63

28

-1.39%

-$44,498.37

-11.47%

-$259,013.63

 

Macquarie Income Plus

$  3,553,885.39

28

-0.79%

-$28,337.38

-3.76%

-$913,74.08

 

Blackrock

$  1,942,312.82

28

-3.80%

-$76,652.23

-27.42%

-$598,031.79

 


 

Long Term Funds

 

 

 

 

 

 

Institution

 Amount

Period (Days)

Performance for Month

Monthly change in net asset value

Change in net asset value LTD

Coupons Paid to Date

Annualised Performance FYTD

NSW Treasury Corp

$732,160.75

28

-5.70%

-$44,234.93

-$270,801.03

N/A

-28.17%

Longreach 2-2007*

$971,860.00

28

-1.20%

-$11,810.00

-$30,240.00

$34,316.44

17.08%

Longreach Series 26*

$399,250.00

28

-1.25%

-$5,050.00

-$96,500.00

$17,500.00

15.60%

Averon II

$307,000.00

28

-2.12%

-$6,650.00

-$193,000.00

$28,396.10

-32.06%

 

 

 

3  Investments held at 28 February 2009

 

 

 

 

 

 

 

 

 

 

Institution

 Amount

Period (Days)

Maturity Date

 Interest Due at maturity

Interest

BCCU

$641,839.35

103

26/05/09

 $            7,969.36

4.40%

Bankwest

$518,118.36

154

18/06/09

 $            9,618.55

4.40%

Macquarie

$830,894.14

153

11/06/09

 $          16,021.46

4.60%

IMB

$1,083,271.23

181

13/08/09

 $          22,024.54

4.10%

Bankwest

$1,000,000.00

209

01/04/09

 $          43,517.81

7.60%

Bankwest

$500,000.00

367

15/06/09

 $          44,291.37

8.81%

Bankwest

$1,000,000.00

196

17/03/09

 $          41,884.93

7.80%

Bankwest

$511,326.03

190

25/06/09

 $          12,909.23

4.85%

Macquarie Bank**

$2,117,886.13

219

23/04/09

 $          96,575.61

7.60%

Macquarie Bank**

$500,000.00

188

03/03/09

 $          20,808.77

8.08%

Newcastle Permanent

$1,054,811.56

189

05/05/09

 $          36,594.74

6.70%

Aberdeen Cash Plus

$3,158,541.63

31

31/03/09

 $            3,219.12

1.20%

Blackrock Diversified Credit

$1,942,312.82

31

31/03/09

 $            1,979.56

1.20%

Macquarie Income Plus

$3,553,885.39

31

31/03/09

 $            3,622.04

1.20%

ANZ High Yield Cash

$523,316.09

31

31/03/09

 $              533.35

1.20%

NSW Treasury Corp

$732,160.75

31

31/03/09

 $              746.20

1.20%

Longreach 2-2007

$971,860.00

31

31/03/09

 $            1,650.83

2.00%

Longreach Series 26

$399,250.00

31

31/03/09

 

0.00%

Averon II

$307,000.00

31

31/03/09

 

0.00%

TOTAL

 $   21,346,473.48

 

 

 $        363,967.47

 

 

 

 

 

 

 

** Deposits - Government Guarantee of 1% covered by institution

 

 

 

 

 

 


 

4  Interest Earned on Investments: February

 

 

 

 

 

 

 

 

 

 

 

 

Total

Interest earned to date

-$277,514.67

 

 

 

 

 

 

 

 

 

 

 

Plus

Interest due on maturity of Term Deposits

$50,887.43

 

 

 

 

 

 

 

 

 

 

 

Accrued  to 28/02/09

-$226,627.24

 

 

 

 

 

 

 

 

 

 

 

Plus

Year to date unrealised changes in Net Asset Value of Capital Protected Securities

 $23,510.00

 

 

 

 

 

 

 

 

 

 

 

Less

Interest due after month in question

-$126,245.99

 

 

 

 

 

 

 

 

 

 

 

* Investment Returns to 28/02/09

-$329,363.23

 

 

 

 

 

 

 

 

 

 

 

Amount of interest expected from all funds and reserves

 

 

 

 

 

as per Budget

 $403,000.00

 

 

 

 

 

 

 

 

 

 

 

* To ensure consistency, returns take into account unrealised gains in Capital Protected Investments

for February of ($23,510.00)

 

 

 

 

  Unrealised losses were added back in previous investment reports.

 

 

 

 

 

 

5  Performance Report

 

TERM DEPOSITS

 

 

 

 

 

 

 

 

 

 

 

 

Institution

Invested

Days

Date of

Interest

Amount of

Total interest &

 

Amount

Invested

Maturity

Rate

interest

investment

 

 

 

 

 

due on

due on

 

 

 

 

 

maturity

Maturity

 

 

 

 

 

 

 

BCCU

$641,839.35

98

26/05/09

4.40%

$7,582.50

$649,421.85

Bankwest

$518,118.36

154

18/06/09

4.40%

$9,618.55

$527,736.91

Macquarie Bank

$830,894.14

153

11/06/09

4.60%

$16,021.46

$846,915.60

IMB

$1,083,271.23

181

13/08/09

4.10%

$22,024.54

$1,105,295.77

Bankwest

$1,000,000.00

209

01/04/09

7.60%

$43,517.81

$1,043,517.81

Bankwest

$500,000.00

367

15/06/09

8.81%

$44,291.37

$544,291.37

Bankwest

$1,000,000.00

196

17/03/09

7.80%

$41,884.93

$1,041,884.93

Bankwest

$511,326.03

190

25/06/09

4.85%

$12,909.23

$524,235.26

Macquarie Bank

$2,117,886.13

219

23/04/09

7.60%

$96,575.61

$2,214,461.74

Macquarie Bank

$500,000.00

188

03/03/09

8.08%

$20,808.77

$520,808.77

Newcastle Permanent

$1,054,811.56

189

05/05/09

6.70%

$36,594.74

$1,091,406.30

 

 

 

 

 

 

 

Total Term Deposits

$9,758,146.80

 

 

 

$351,829.51

$10,109,976.31

 

 

 


 

MANAGED FUNDS- Medium term

 

 

 

 

 

 

 

 

 

 

 

Aberdeen Cash Plus

 

 

 

 

 

 

 

 

 

 

 

 

Anticipated return per month 1.20%

 

 

 

 

 

 

 

 

 

 

 

Institution

 

 

Additional

Performance

Redemptions/

Current Market

 

Date

Investment

Deposits

 

Pay Outs

Value

 

 

 

 

 

 

 

Balance

30/06/2008

$4,417,555.26

 

 

 

$4,417,555.26

Returns

31/07/2008

 

 

-$45,418.38

-$1,000,000.00

$3,372,136.88

Returns

31/08/2008

 

 

$9,819.19

 

$3,381,956.07

Returns

30/09/2008

 

 

-$68,546.58

 

$3,313,409.49

Returns

31/10/2008

 

 

-$60,890.40

 

$3,252,519.09

Returns

30/11/2008

 

 

-$16,834.43

 

$3,235,684.66

Returns

31/12/2008

 

 

-$45,544.51

 

$3,190,140.15

Returns

31/01/2009

 

 

$12,899.85

 

$3,203,040.00

Returns

28/02/2009

 

 

-$44,498.37

 

$3,158,541.63

 

 

 

 

 

 

 

 

 

$4,417,555.26

$0.00

-$259,013.63

-$1,000,000.00

$3,158,541.63

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Blackrock Diversified Credit

 

 

 

 

 

 

 

 

 

 

 

 

Anticipated return per month 1.20%

 

 

 

 

 

 

 

 

 

 

 

Institution

 

 

Additional

Performance

Redemptions/

Current Market

 

Date

Investment

Deposits

 

Pay Outs

Value

 

 

 

 

 

 

 

Balance

30/06/2008

$4,457,903.91

 

 

 

$4,457,903.91

Returns

31/07/2008

 

 

-$33,710.35

 

$4,424,193.56

Returns

31/08/2008

 

 

$4,404.58

 

$4,428,598.14

Returns

30/09/2008

 

 

-$117,158.68

 

$4,311,439.46

Pay Out

2/10/2008

 

 

 

-$1,226,187.12

$3,085,252.34

Returns

31/10/2008

 

 

-$259,727.88

 

$2,825,524.46

Returns

30/11/2008

 

 

-$59,542.36

 

$2,765,982.10

Pay Out

11/12/2008

 

 

 

-$691,372.19

$2,074,609.91

Returns

31/12/2008

 

 

-$50,511.92

 

$2,024,097.99

Returns

31/01/2009

 

 

-$5,132.96

 

$2,018,965.03

Returns

28/02/2009

 

 

-$76,652.23

 

$1,942,312.80

 

 

 

 

 

 

 

 

 

$4,457,903.91

$0.00

-$598,031.80

-$1,917,559.31

$1,942,312.80

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Macquarie Income Plus

 

 

 

 

 

 

 

 

 

 

 

Anticipated return per month 1.20%

 

 

 

 

 

 

 

 

 

 

 

Institution

 

 

Additional

Performance

Redemptions/

Current Market

 

Date

Investment

Deposits

 

Pay Outs

Value

 

 

 

 

 

 

 

Balance

30/06/2008

$4,145,259.47

 

 

 

$4,145,259.47

Returns

31/07/2008

 

 

$15,676.58

-$500,000.00

$3,660,936.05

Returns

31/08/2008

 

 

$19,198.74

 

$3,680,134.79

Returns

30/09/2008

 

 

-$107,809.39

 

$3,572,325.40

Returns

31/10/2008

 

 

$44,937.28

 

$3,617,262.68

Returns

30/11/2008

 

 

-$12,839.22

 

$3,604,423.46

Returns

31/12/2008

 

 

-$34,669.14

 

$3,569,754.32

Returns

31/01/2009

 

 

$12,468.45

 

$3,582,222.77

Returns

28/02/2009

 

 

-$28,337.38

 

$3,553,885.39

 

 

 

 

 

 

 

 

 

$4,145,259.47

$0.00

-$91,374.08

-$500,000.00

$3,553,885.39

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ANZ High Yield On call account

 

 

 

 

 

 

 

 

 

 

 

Anticipated return per month

1.20%

 

 

 

 

 

 

 

 

 

 

 

Institution

 

 

Additional

Performance

Redemptions/

Current Market

 

Date

Investment

Deposits

 

Pay Outs

Value

 

 

 

 

 

 

 

Balance

30/06/2008

$0.00

 

 

 

$0.00

Additional investment

2/10/2008

 

$1,226,187.12

 

 

$1,226,187.12

Returns

31/10/2008

 

 

-$1,557.51

 

$1,224,629.61

Redemptions

5/11/2008

 

 

 

-$500,000.00

$724,629.61

Redemptions

11/11/2008

 

 

 

-$300,000.00

$424,629.61

Returns

30/11/2008

 

 

$4,655.99

 

$429,285.60

Additional investment

11/12/2008

 

$691,372.19

 

 

$1,120,657.79

Redemptions

19/12/2008

 

 

 

-$600,000.00

$520,657.79

Returns

31/12/2008

 

 

$1,239.09

 

$521,896.88

Returns

31/01/2009

 

 

$922.07

 

$522,818.95

Returns

28/02/2009

 

 

$497.14

 

$523,316.09

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$0.00

$1,917,559.31

$5,756.78

-$1,400,000.00

$523,316.09

 

 

 


 

MANAGED FUNDS- Long Term Funds

 

 

 

 

 

 

 

 

 

 

NSW Treasury Corp

 

 

 

 

 

 

 

 

 

 

 

Anticipated return per month  1.20%

 

 

 

 

 

 

 

 

 

 

 

Institution

 

 

Additional

Performance

Redemptions/

Current Market

 

Date

Investment

Deposits

 

Pay Outs

Value

 

 

 

 

 

 

 

Balance

30/06/2008

$889,610.10

 

 

 

$889,610.10

Returns

31/07/2008

 

 

-$17,060.56

 

$872,549.54

Returns

31/08/2008

 

 

$35,616.38

 

$908,165.92

Returns

30/09/2008

 

 

-$14,537.30

 

$893,628.62

Returns

31/10/2008

 

 

-$87,639.15

 

$805,989.47

Returns

30/11/2008

 

 

-$25,741.41

 

$780,248.06

Returns

31/12/2008

 

 

$4,766.16

 

$785,014.22

Returns

31/01/2009

 

 

-$8,618.54

 

$776,395.68

Returns

28/02/2009

 

 

-$44,234.93

 

$732,160.75

 

 

 

 

 

 

 

 

 

$889,610.10

$0.00

-$157,449.35

$0.00

$732,160.75

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Longreach 2-2007 - (Capital Protected)

 

 

 

 

 

 

 

 

 

 

 

Anticipated return per month  2.00%

 

 

 

 

 

 

 

 

 

 

 

Institution

 

 

Additional

Performance

Redemptions/

Current Market

 

Date

Investment

Deposits

 

Pay Outs

Value

 

 

 

 

 

 

 

Balance

30/06/2008

$866,430.00

 

 

 

$866,430.00

Returns

31/07/2008

 

 

$22,190.00

 

$888,620.00

Returns

31/08/2008

 

 

$22,090.00

 

$910,710.00

Returns

30/09/2008

 

 

$4,030.00

 

$914,740.00

Returns

31/10/2008

 

 

$22,260.00

 

$937,000.00

Returns

30/11/2008

 

 

$42,670.00

 

$979,670.00

Returns

31/12/2008

 

 

-$14,932.50

 

$964,737.50

Returns

31/01/2009

 

 

$18,932.50

 

$983,670.00

Returns

28/02/2009

 

 

-$11,810.00

 

$971,860.00

 

 

 

 

 

 

 

 

 

$866,430.00

$0.00

$105,430.00

$0.00

$971,860.00

 

 

 

 

 

 

 


 

Longreach Series 26 (Capital Protected)

 

 

 

 

 

 

 

 

 

 

Anticipated return per month 0.00%

 

 

 

 

 

 

 

 

 

 

 

Institution

 

 

Additional

Performance

Redemptions/

Current Market

 

Date

Investment

Deposits

 

Pay Outs

Value

 

 

 

 

 

 

 

Balance

30/06/2008

$360,100.00

 

 

 

$360,100.00

Returns

31/07/2008

 

 

$7,000.00

 

$367,100.00

Returns

31/08/2008

 

 

$4,250.00

 

$371,350.00

Returns

30/09/2008

 

 

$3,550.00

 

$374,900.00

Returns

31/10/2008

 

 

-$11,150.00

 

$363,750.00

Returns

30/11/2008

 

 

$17,400.00

 

$381,150.00

Returns

31/12/2008

 

 

$13,550.00

 

$394,700.00

Returns

31/01/2009

 

 

$9,600.00

 

$404,300.00

Returns

28/02/2009

 

 

-$5,050.00

 

$399,250.00

 

 

 

 

 

 

 

 

 

$360,100.00

$0.00

$39,150.00

$0.00

$399,250.00

 

 

 

 

 

 

 

Averon II (Capital Protected)

 

 

 

 

 

 

 

 

 

 

 

Anticipated return per month 0.00%

 

 

 

 

 

 

 

 

 

 

 

Institution

 

 

Additional

Performance

Redemptions/

Current Market

 

Date

Investment

Deposits

 

Pay Outs

Value

 

 

 

 

 

 

 

Balance

30/06/2008

$384,750.00

 

 

 

$384,750.00

Returns

31/07/2008

 

 

$0.00

 

$384,750.00

Returns

31/08/2008

 

 

$15,600.00

 

$400,350.00

Returns

30/09/2008

 

 

$4,650.00

 

$405,000.00

Returns

31/10/2008

 

 

-$65,700.00

 

$339,300.00

Returns

30/11/2008

 

 

$3,200.00

 

$342,500.00

Returns

31/12/2008

 

 

-$3,200.00

 

$339,300.00

Returns

31/01/2009

 

 

-$25,650.00

 

$313,650.00

Returns

28/02/2009

 

 

-$6,650.00

 

$307,000.00

 

 

 

 

 

 

 

 

 

$384,750.00

$0.00

-$77,750.00

$0.00

$307,000.00

 

 

 

 

 

 

 

Total Managed Funds-Performance since July, 2008

$1,917,559.31

-$1,033,282.08

-$4,817,559.31

$11,588,326.66

 

 

 

 

 

 

 

Total investments for the month

 

 

 

$21,346,473.46

Total investments on maturity

 

 

 

$21,698,302.97

 

 

 

 

 

 

 

 


This report details all the investments placed during February and Council funds invested as at 28 February 2009.

 

The following investment report has been drawn up in accordance with the Local Government Act 1993 (as amended), the Regulations and Council Policy 1.9 – Investment of Surplus Funds.

 

 

C P Doolan

Responsible Accounting Officer

 

 

CONSULTATION:

 

Grove Research and Advisory.

 

SUSTAINABILITY ASSESSMENT:

 

Environment

 

There are no environmental implications.

 

Social

 

There are no social implications.

 

Economic

 

There are no economic implications.

 

Risk

 

That Council may not meet its budget returns for 2008/09 based on current performance.

 

 

FINANCIAL IMPLICATIONS:

 

Direct and indirect impact on current and future budgets

A further review of budgeted interest returns for 2008/09 will be included with the March Budget Review and Grove have provided Council with the updated interest rates.

 

Source of fund and any variance to working funds

Interest on investments will be assessed with the March 2009 Budget Review.  Variances have been distributed between the Water, Sewerage and General Funds.

 

Attachments:

 

  


Ordinary Council Meeting

19 March 2009

Director of Engineering Services Report

ITEM 11.4    SF844              190309         Nambucca District Water Supply Steering Committee Meeting - 4 March 2009

 

AUTHOR/ENQUIRIES:     Richard Spain, Manager Water and Sewerage         

 

Summary:

 

The minutes of the Nambucca District Water Supply Steering Committee meeting held on 4 March 2009 are attached for Council information and adoption.

 

 

Recommendation:

 

That Council adopt the minutes of the Steering Committee Meetings held on 4 March 2009.

 

 

 

OPTIONS:

 

Adopt the minutes or seek further clarification on particular items.

 

DISCUSSION:

 

The Nambucca District Water Supply Steering Committee meets on a monthly basis to discuss the Off River Storage Project in terms of, progress, risks, budget and consultant engagements.

 

The members of the Committee met on 4 March 2009 and discussed a number of matters as per the attached minutes.

 

 

CONSULTATION:

 

Department of Commerce

Department of Water and Energy

Hydroilex (Borefield Investigation Consultants)

 

 

SUSTAINABILITY ASSESSMENT:

 

Social

 

The project aims to provide a social benefit through security of water supply.

 

Environment

 

The environment impacts of the project will be detailed in the Environmental Impact Statement currently being prepared by GHD.

 

Economic

 

The project will have a significant economic impact on the community as increases in both the typical residential bill and developer charges will be required to service Council’s financial commitment to the project.

 


Risk

 

This is a major project for the Shire and there are significant risks associated with it particularly with regard to the impact of the level of State Government subsidy.  An updated project risk register is kept by the Project Managers and the risks are discussed during the meetings.

 

 

FINANCIAL:

 

Direct and indirect impact on current and future budgets

 

Council has committed funding for preconstruction phase of the off river storage project in the 2008/09 budget and funds will also be allocated for inclusion in the 2009/10 budget.

 

Council is well aware that the level of DWE subsidy will have the most significant impact on future budget for this project.

 

Source of funds and any variance to working funds

 

Funding for the project will be sourced from reserves and loans.

 

DWE have advised that this project is eligible for subsidy as part of the existing Country Towns Water Supply and Sewerage program. However the level of subsidy is yet to be determined and will only be confirmed once a tender for the construction has been let.

 

 

Attachments:

1View

6391/2009 - Nambucca District Water Supply Bowraville Off-River Storage Steering Committee Meeting Minutes - 4 March 2009

 

 

 


Ordinary Council Meeting - 19 March 2009

Nambucca District Water Supply Steering Committee Meeting - 4 March 2009

Attachment 1

6391/2009 - Nambucca District Water Supply Bowraville Off-River Storage Steering Committee Meeting Minutes - 4 March 2009