|
Investment Subcommittee Wednesday 29 August 2018 at 8.30am
|
|
|
|
|
|
Investment Subcommittee Wednesday 29 August 2018 at 8.30am
|
|
|
|
|
Investment Subcommittee
29 August 2018
Investment Subcommittee Agenda
Meeting to be held in the Whale Bay Room
36 Water Street, Whangārei
on Wednesday 29 August 2018, commencing at 8.30am
Recommendations contained in the agenda are NOT
decisions of the meeting.
Please refer to minutes for resolutions.
MEMBERSHIP OF THE Investment Subcommittee
Cr John Bain (Chair) Cr Bill Shepherd Cr Penny Smart
Mr Geoff Copstick Cr Rick Stolwerk (Alternate)
Item Page
1.0 apologies
Cr Bill Shepherd
GM, Corporate Excellence
2.0 declarations of conflicts of interest
3.1 Confirmation of Minutes 3
4.1 Refund the PRF from the IIF for Kaitaia Flood control properties 6
4.2 Performance of council's externally managed funds to July 2018 9
Investment Subcommittee item: 3.1
29 August 2018
|
TITLE: |
Confirmation of Minutes |
|
ID: |
A1100092 |
|
From: |
Dave Tams, Group Manager, Corporate Excellence |
Executive Summary
The purpose of this report is to present for confirmation the minutes of the Investment SubCommittee meeting held on 31 July 2018.
Councils are required to keep minutes of proceedings in accordance with the Local Government Act 2002.
That the minutes of the Investment SubCommittee meeting held on 31 July 2018 be confirmed as a true and correct record.
Attachment 1: Investment SubCommittee
Minutes - 31 July 2018 ⇩ 
Authorised by Group Manager
|
Name: |
Dave Tams |
|
Title: |
Group Manager, Corporate Excellence |
|
Date: |
21 August 2018 |
Investment Subcommittee item: 4.1
29 August 2018
|
TITLE: |
Refund the PRF from the IIF for Kaitaia Flood control properties |
|
ID: |
A1100503 |
|
From: |
Simon Crabb, Finance Manager |
Executive Summary
In June 2018 council purchased 17-29 Dunn Street and 28-34 Empire Street in Kaitaia for $683,363 inclusive of site investigation costs and legal fees.
These 2 properties were purchased for flood control works, and were approved by council (24 October 2017) to be ultimately funded from the Infrastructure Investment fund (IIF).
At the time of purchase, council had not undertaken its Long-Term Plan (LTP) deliberation process, nor officially approved the flood control project. Thus, the funding of $683,363 was initially withdrawn from the Property Reinvestment Fund (PRF) with a view to refunding the PRF from the IIF upon council adopting its LTP.
The Eriksen Global recommendation (contained in Attachment One) to complete this refund is:
· $683,363 be withdrawn from the IIF Milford Diversified Income Fund:
· $683,363 be invested into the PRF Mint Diversified Income Fund:
The $683,363 will be repaid over time from the Flood Infrastructure targeted rate and the Awanui Flood Infrastructure targeted rate.
1. That the report ‘Refund the PRF from the IIF for Kaitaia Flood control properties’ by Simon Crabb, Finance Manager and dated 20 August 2018, be received.
2. That $683,363 is redeemed from the IIF Milford Diversified Income fund and invested into the PRF Mint Diversified Income Fund to repay the PRF for the purchase of the Empire and Dunn Street properties
Considerations
1. Options
|
No. |
Option |
Advantages |
Disadvantages |
|
1 |
Redeem and Invest funds as recommended |
Aligns the purpose of the property transaction with the appropriate funding mechanism, and generates a larger balance in the PRF dedicated to funding future investment properties |
The balance of the IIF is reduced by $683,363. |
|
2 |
Status quo |
The balance of the IIF is maintained at current levels. |
The PRF balance remains $683,363 lower than projected due to funding an operational project. |
The staff’s recommended option is 1.
2. Significance and engagement
In relation to section 79 of the Local Government Act 2002, this decision is considered to be of low significance because it is part of council’s day-to-day activities and is in accordance with the approved Treasury Management Policy.
3. Policy, risk management and legislative compliance
The activities detailed in this report are in accordance with council’s Treasury Management Policy and the 2018–28 Long Term Plan, both of which were approved in accordance with council’s decision-making requirements of sections 76–82 of the Local Government Act 2002.
Other Considerations
Being a purely administrative matter, Community Views, Māori Impact Statement, Financial Implications and Implementation Issues are not applicable.
Attachments
Attachment 1: NRC Flood Protection
Works Refund Recommendation ⇩
Authorised by Group Manager
|
Name: |
Dave Tams |
|
Title: |
Group Manager, Corporate Excellence |
|
Date: |
22 August 2018 |
Investment Subcommittee item: 4.2
29 August 2018
|
TITLE: |
Performance of council's externally managed funds to July 2018 |
|
ID: |
A1100524 |
|
From: |
Simon Crabb, Finance Manager |
Executive Summary
A summary of the returns and target objectives for the month of July 2018 for each externally managed fund is presented below, with the supporting detail and fund performance for longer periods contained in Attachment 1.
Each fund outperformed their objective over three-month, one year, and three year timeframes (where applicable).
That the report ‘Performance of council's externally managed funds to July 2018’ by Simon Crabb, Finance Manager and dated 20 August 2018, be received.
Background
Community Investment Fund (CIF)
At 31 July 2018, the CIF had a market value of $14.2M and had performed as follows:
Property Reinvestment Fund (PRF)
At 31 July 2018, the PRF had a market value of $18.4M and performed as follows:
Infrastructure Investment Fund (IIF)
At 31 July 2018, the IIF had a market value of $11.1M and performed as follows:
Short Term Investment Fund (STF)
At 31 July 2018, the STF had a market value of $1.9M and performed as follows:
Attachment 1: Northland Regional
Council Externally Managed Investment Funds - Eriksen Global Monthy Report July
2018 ⇩ 
Authorised by Group Manager
|
Name: |
Dave Tams |
|
Title: |
Group Manager, Corporate Excellence |
|
Date: |
22 August 2018 |
