Addendum Agenda of Ordinary Meeting - Tuesday, 10 December 2024

Ordinary Meeting

10 December 2024

Community & Lifestyle Report

COM 04

Policy Review - Code of Meeting Practice

Strategic Objective	Visionary, Leading, Responsible Demonstrate a high standard of transparency and accountability through a comprehensive governance framework
File Ref	401985.2024
Report By	M'Leigh Brunetta - Civic & Executive Services Manager
Approved By	Tina Bono - Director Community & Lifestyle

Executive Summary

This report was deferred from Ordinary Council Meeting – 26 November 2024.

Amendments to this report include

1. Timeline for delivery (table)

2. Risks (updated)

The Model Code of Meeting Practice (the Model Code) provides a uniform set of meeting rules for Councils throughout NSW to help ensure more accessible, orderly, effective and efficient meetings. The Model Code is defined by the Office of Local Government and applies to all meetings of Councils, including committees of Council (where all committee members are Councillors).

The Model Code defines that Council must adopt a code of meeting practice within 12 months of the local government elections and further specifies that before adopting a new code, it must first place the draft of the code on public exhibition for at least 28 days and provide members of the community at least 42 days to provide feedback.

At the 16 October 2024 Council Meeting, Council instigated to complete a review of the Code of Meeting Practice Policy and report back to Council as a priority. An internal and external review of the Code of Meeting Practice has subsequently been conducted.

Recommended amendments to the draft Code of Meeting Practice have also been tabled at the Governance Meeting 13 November 2024.

In addition, the report Policy Review - Code of Meeting Practice was tabled at the 26 November 2024 Council meeting (COM07) and deferred to the 10 December 2024 Council meeting. Consultation continued with Council throughout this period.

This report also seeks to amend the planned date for the Governance meeting currently scheduled for 21 May 2025. As per the Council resolution 16 October 2024, Council recommends that the Governance Meeting confirmed to take place on 13 May 2025 be brought forward one (1) week to align to the 21 May 2025 Council Meeting date. This will ensure adequate briefing and administrative time and align all Council Meeting dates resolved for 2025.

RECOMMENDATION

That Council:

1. Notes, as per Council resolution 16 October 2024, an internal and external review of the Code of Meeting Practice has been conducted and tabled at the Governance Meeting 13 November 2024;

2. Notes, this report was deferred from 26 November 2024 Council meeting, and Council consultation continued throughout this period;

3. Notes, the forecast timeline to achieve endorsement tabled in this report;

4. Notes, the Draft Code of Meeting Practice detailed in attachment one (1) and supports its commencement of public exhibition for at least 28 days and provide members of the community at least 42 days to provide feedback;

5. Notes, there is an opportunity for Councillors to provide further feedback on the draft Code of Meeting Practice throughout the public exhibition period;

6. Reports back to Council in February 2025, the draft Code of Meeting Practice for consideration and adoption; and

7. Supports moving the Governance Meeting confirmed for the 20 May to the 13 May 2025 to align to the 21 May Council Meeting date.

REPORT

Liverpool City Council is required to adopt a Code of Meeting Practice that incorporates, at minimum, the mandatory provisions of the Model Meeting Code of Meeting Practice (The Model Code) specified by the NSW Office of Local Government (OLG).

The Model Code for Local Councils in NSW is made under section 360 of the Local Government Act 1993 (the Act) and the Local Government (General) Regulation 2005 (the Regulation).

The Model Code applies to all meetings of councils and committees of councils of which all the members are councillors (committees of council). Council committees whose members include persons other than councillors may adopt their own rules for meetings unless the council determines otherwise.

To meet the obligations contained in the Model Code, at its 16 October 2024 Council Meeting, Council resolved the following:

That Council:

1. Confirms the Council meeting time to commence at 6:00pm rather than 2:00pm for each monthly meeting for 2025.

2. Confirms the Council meeting dates for the 2025 calendar year as follows:

· 5 February 2025;

· 26 February 2025;

· 26 March 2025;

· 23 April 2025;

· *21 May 2025;

· 25 June 2025;

· 23 July 2025;

· 27 August 2025;

· 24 September 2025;

· 22 October 2025;

· 19 November 2025; and

· 10 December 2025.

3. Confirms the Governance Committee meeting time as 10am and the Briefing Sessions to be held directly following the Governance Committee meetings, and meeting dates for the 2025 calendar year as follows:

· 28 January 2025;

· 18 February 2025;

· 18 March 2025;

· 15 April 2025;

· *20 May 2025;

· 17 June 2025;

· 15 July 2025;

· 19 August 2025;

· 16 September 2025;

· 14 October 2025;

· 11 November 2025; and

· 2December 2025.

4. Note that the Code of Meeting Practice adopted 26 October 2022 requires clarification with regards to clauses 3.1 and 18.1.

5. Direct the Acting CEO that the Code of Meeting Practice is externally reviewed, and a report comes back to Council as a priority;

6. Fund the external review from General Funds;

7. Advertises the Council meeting dates and commencing times of Council meetings for the 2025 calendar year; and

8. Promotes and makes the community aware of the changes in the new year via social media channels.

On being put to the meeting the Foreshadowed Motion (moved by Clr Karnib) became the motion and was declared CARRIED.

Review of Code of Meeting Practice

As per the Council resolution at its 16 October 2024 Council Meeting, Council has undertaken a review of its Code of Meeting Practice to ensure that it fulfills the mandatory obligations contained in the Model Code. This review was undertaken both by Council Officers (internal review) and by an independent legal consultant (external review).

A copy of the recommended amendments is attached to this report.

Change in Governance meeting date

At the 16 October 2024 Council Meeting, Council moved the proposed May Council meeting from 28^th to 21^st May however, the monthly Governance Meeting was not amended to align to this date.

Currently the assigned date for the Governance Committee Meeting is 20 May 2024.

It is proposed in this report that the Governance Meeting on the 20 May 2025 be moved to the 13 May to ensure adequate briefing notice and calendar alignment.

Timeline for delivery

ITEM	DATE
Council Resolution – (conduct Policy review)	14 October 2024
Internal and External Review – Draft Code of Meeting Practice	Oct – Nov 2024
Governance Meeting – consultation of Draft Code of Meeting Practice	13 November 2023
Council Meeting: Report tabled COM07 – Adjourned meeting	20 November 2024
Council Meeting: Report tabled COM07 – Deferred Report	26 November 2024
Council Meeting: Report tabled seeking endorsement for Public Exhibition	10 December 2024
Proposed Public Exhibition Period	16 Dec – 31 Jan 2025
Community feedback considered	3 – 7 February 2025
Council Meeting: Report seeking draft Policy endorsement	26 February 2025

FINANCIAL IMPLICATIONS

Council resolved an external review be administered and funded from General Funds to ensure alignment to the Model Code of Meeting Practice for Local Councils in NSW.

CONSIDERATIONS

Economic	There are no economic and financial considerations.
Environment	There are no environmental and sustainability considerations.
Social	Raise awareness in the community about the available services and facilities. Promote community harmony and address discrimination. Support access and services for people with a disability. Deliver high quality services for children and their families.
Civic Leadership	Undertake communication practices with the community and stakeholders across a range of media. Foster neighbourhood pride and a sense of responsibility. Facilitate the development of community leaders. Encourage the community to engage in Council initiatives and actions. Provide information about Council’s services, roles and decision making processes. Deliver services that are customer focused. Operate a well-developed governance system that demonstrates accountability, transparency and ethical conduct.
Legislative	Local Government Act 1993. Local Government Regulation 2005.
Risk	The risk is deemed to be low. The 2025 Council Meeting schedule has been resolved by Council to commence at 6pm (from 2pm). Councils’ intent was to complete community consultation before commencement; however, this cannot be achieved due to deferral.

ATTACHMENTS

1. DRAFT Policy - Code of Meeting Practice _ 2024

Ordinary Meeting

10 December 2024

Corporate Support Report

CORP 03

Investment Report November 2024

Strategic Objective	Visionary, Leading, Responsible Ensure Council is accountable and financially sustainable through the strategic management of assets and resources
File Ref	406453.2024
Report By	Vishwa Nadan - Chief Financial Officer
Approved By	David Galpin - Acting Director Corporate Support

Executive Summary

This report details Council’s investment portfolio and its performance at 30 November 2024. Key highlights include:

· Council held investments with a market value of $380 million.

· The Reserve Bank of Australia (RBA)’s official cash rate remains at 4.35 per cent.

· The portfolio yield (for the year to November 2024) was 2 basis points above the benchmark (AusBond Bank Bill Index).

	AusBond Bank Bill Index (ABBI)
Benchmark	4.45%
Portfolio yield	4.47%
Performance above benchmark	0.02%

· Council’s investment portfolio is performing slightly better than ABBI benchmark. Council still has $19.35m in low-yielding (returning less than 2%) investments and not maturing till 2026. These investments will continue to impact on Council’s portfolio performance.

· Year-to-date, Council’s investment income was $2.04 million higher than the original budget. This is due to a combination of increase in market interest rates and unrealised gain in fair value of Floating Rate Notes (FRNs).

· Year-to-date, Council’s investment in mortgage-backed securities (MBSs) is valued at $364 thousand below face value. Council’s investment advisor continues to review Council’s investment in MBSs and recommends Council continue to hold its investments in the Class A and Class C securities. There is significant uncertainty associated with these investments, however presently Council’s investment advisor believes there is, on balance, more upside opportunity than downside risk. This is subject to ongoing regular review. MBSs are no longer rated.

· Council’s investments and reporting obligations fully complied with the requirements of section 625 of the Local Government Act 1993 and section 212 of the Local Government (General) Regulation 2021.

· Council’s portfolio also fully complied with limits set out in its current Investment Policy, noting the exception applicable to MBSs (as investment in them pre-dates the current Investment Policy).

· Council is committed to NSW TCorp’s balanced investment framework and held 11.68 per cent of its portfolio in ADIs rated BBB and below.

RECOMMENDATION

That the Council receives and notes this report.

REPORT

Section 212 of the Local Government (General) Regulation 2021 requires that the Responsible Accounting Officer must provide Council with a written report setting out details of all money that Council has invested under section 625 of the Local Government Act 1993.

Council’s portfolio

At 30 November 2024, Council held investments with a market value of $380 million. Council’s investment register detailing all its investments is provided as an attachment to this report. In summary, Council’s portfolio consisted of investments in:

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The ratio of market value compared to face value of various debt securities is shown in the table below.

*Definition of terms

· FRN - Floating Rate Note - returns an aggregate of a fixed margin and a variable benchmark (usually the Bank Bill Swap Rate).

· FRB - Fixed Rate Bond – returns a fixed coupon (interest) rate and is tradeable before maturity.

· TCD - Transferrable Certificate of Deposit - security issued with the same characteristics as a term deposit, however it can be sold back (transferred) into the market prior to maturity. A floating TCD pays a coupon linked to a variable benchmark (90-day Bank Bill Swap Rate).

Council continues to closely monitor the investments in its portfolio to ensure continued compliance and minimal exposure to risk.

Council is committed to NSW TCorp’s balanced investment framework and held 11.68 per cent of its portfolio in ADIs rated BBB and below.

Mortgaged-backed securities

Council’s investment advisor regularly reviews investments in grandfathered mortgage-backed securities (MBSs) and continues to recommend “hold” position on investments in Class A and both Class C securities.

There is significant uncertainty associated with these investments, however presently the investment advisors believe there is, on balance, more upside opportunity than downside risk. Notwithstanding this recommendation, Council’s investment advisor has assessed that both Class C securities are likely to eventually default. However, Council will continue to receive interest up until default which is likely to be many years in the future. Fitch Rating Agency has decided to withdraw its rating on MBSs and as a result, Council’s investments in these securities are now classed as non-rated. Year-to-date, Council’s investment in MBSs is valued at $364 thousand below face value.

Portfolio maturity profile

The table below shows the percentage of funds invested at different durations to maturity.

Counterparty policy limit compliance

Credit rating policy limit compliance

Compliance with Investment policy – In summary

Legislative requirements	ü	Fully compliant, noting exception applicable to grandfathered mortgaged-backed investments.
Portfolio credit rating limit	ü	Fully compliant
Institutional exposure limits	ü	Fully compliant
Overall portfolio credit limits	ü	Fully compliant
Term to maturity limits	ü	Fully compliant

Portfolio performance against relevant market benchmark

Council’s Investment Policy prescribes the AusBond Bank Bill Index (ABBI) as a benchmark to measure return on cash and fixed interest securities. The ABBI represents the average daily yield of a parcel of bank bills. Historically there has been a positive correlation between changes in the cash rate and the resulting impact on the ABBI benchmark.

Council’s investment portfolio is performing slightly better than ABBI benchmark. Council still has $19.35m in low-yielding (returning less than 2%) investments and not maturing till 2026. These investments will continue to impact on Council’s portfolio performance.

The portfolio yield for the year to November 2024 was above the ABBI index by 2 basis points (portfolio yield: 4.47%; ABBI: 4.45%).

Comparative yields for the previous months are charted below:

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Performance of portfolio returns against budget

Year-to-date, Council’s investment income was $2.04m higher than the original budget. This is due to a combination of increase in market interest rate and unrealised gain in fair value of Floating Rate Notes (FRNs).

	YTD Budget	YTD Actuals	Budget Variance
Interest yield on cash holdings	$5.96m	$7.04m	$1.08m
Fair value market movement	$0.00m	$0.96m	$0.96m
Total	$5.96m	$8.00m	$2.04m

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Economic outlook – Reserve Bank of Australia

The Reserve Bank of Australia kept the official cash rate at 4.35 per cent in its meeting on 5 November 2024.

Certificate of Responsible Accounting Officer

The Chief Financial Officer, as Responsible Accounting Officer, certifies that the investments listed in the attached report have been made in accordance with section 625 of the Local Government Act 1993, section 212 of the Local Government (General) Regulation 2021 and Council’s Investment Policy at the time of their placement. The previous investments are covered by the grandfathering clauses of the current investment guidelines issued by the Minister for Local Government.

CONSIDERATIONS

Economic	Council’s investment income was $2.04 million higher than the original budget at 30 November 2024.
Environment	There are no environmental and sustainability considerations.
Social	There are no social and cultural considerations.
Civic Leadership	There are no civic leadership and governance considerations.
Legislative	Local Government Act 1993, section 625 Local Government (General) Regulation 2021, section 212 Council is empowered by section 625 of the Local Government Act 1993 to invest money that is not, for the time being, required by Council for any other purpose. Council may invest money in a form of investment notified by order of the Minister. The Minister has published the Local Government Act 1993 – Investment Order which specifies the forms of investment that a council may make. It makes clear that Council must have an investment policy and invest in accordance with that policy. Council is required to invest prudently and must consider: · the risk of capital or income loss or depreciation, · the likely income return and the timing of income return, · the length of the term of the proposed investment, · the liquidity and marketability of the proposed investment, · the likelihood of inflation affecting the value of the proposed investment, and · the costs of making the proposed investment. The responsible accounting officer must provide Council with a written report setting out details of money invested at its ordinary meetings (but only at one meeting in a month): section 212 of the Local Government (General) Regulation 2021. The report must include a certificate as to whether the investment has been made in accordance with the Act, the regulations and Council’s investment policies.
Risk	The capital value and return-on-investment is subject to market risks. Investment limits prescribed in Council’s policy framework is aimed to mitigate these risks.

ATTACHMENTS

1. Investment Portfolio November 2024

1
COM 04	Policy Review - Code of Meeting Practice
Attachment 1	DRAFT Policy - Code of Meeting Practice _ 2024