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Council  Agenda

 

 

 

27 April 2016

 

 

 

 

 

ALL INFORMATION AVAILABLE IN VARIOUS FORMATS ON REQUEST

 

 

 


CITY OF BUSSELTON

MEETING NOTICE AND AGENDA – 27 April 2016

 

 

 

TO:                  THE MAYOR AND COUNCILLORS

 

 

NOTICE is given that a meeting of the Council  will be held in the Meeting Room One, Community Resource Centre, 21 Cammilleri Street, Busselton on Wednesday, 27 April 2016, commencing at 5.30pm.

 

Your attendance is respectfully requested.

 

 

 

Mike Archer

 

CHIEF EXECUTIVE OFFICER

 

15 April 2016


CITY OF BUSSELTON

Agenda FOR THE Council  MEETING TO BE HELD ON 27 April 2016

TABLE OF CONTENTS

 

ITEM NO.                                        SUBJECT                                                                                                                              PAGE NO.

1....... Declaration of Opening and Announcement of Visitors. 5

2....... Attendance. 5

Apologies. 5

Approved Leave of Absence. 5

3....... Prayer. 5

4....... Public Question Time. 5

Response to Previous Questions Taken on Notice. 5

Public Question Time. 5

5....... Announcements Without Discussion.. 5

Announcements by the Presiding Member. 5

Announcements by other Members at the invitation of the Presiding Member. 5

6....... Application for Leave of Absence. 5

7....... Petitions and Presentations. 5

8....... Disclosure Of Interests. 5

9....... Confirmation and Receipt Of Minutes. 5

Previous Council Meetings. 5

9.1          Minutes of the Council  held on 13 April 2016. 5

Committee Meetings. 6

9.2          Minutes of the Finance Committee Meeting held 14 April 2016. 6

10..... Reports of Committee. 7

10.1        Finance Committee - 14/04/2016 - LIST OF PAYMENTS MADE - FEBRUARY 2016. 7

10.2        Finance Committee - 14/04/2016 - FINANCIAL ACTIVITY STATEMENTS - PERIOD ENDING 29 FEBRUARY 2016. 25

10.3        Finance Committee - 14/04/2016 - ANNUAL BUDGET REVIEW - PERIOD ENDING 29 FEBRUARY 2016. 43

10.4        Finance Committee - 14/04/2016 - DRAFT SCHEDULE OF FEES AND CHARGES FOR THE 2016/17 FINANCIAL YEAR. 64

10.5        Finance Committee - 14/04/2016 - WHALE VIEWING PLATFORM POINT PICQUET - 2015/16 BUDGET AMENDMENT. 105

10.6        Finance Committee - 14/04/2016 - PERMIT FEES FOR COMERCIAL USE OF BERTHING PLATFORMS AT THE BUSSELTON JETTY. 110

10.7        Finance Committee - 14/04/2016 - GEOGRAPHE LEISURE CENTRE - BUDGET AMENDMENT REQUEST DRYSIDE CHANGEROOM RENEWAL. 121

11..... Planning and Development Services Report. 126

11.1        WONNERUP COASTAL RESERVES MANAGEMENT PLAN.. 126

11.2        PROPOSED AMENDMENT NO. 15 TO LOCAL PLANNING SCHEME NO. 21 - LOT 4001 METRICUP-YELVERTON ROAD, YELVERTON - CONSIDERATION OF ADOPTION FOR FINAL APPROVAL. 134

12..... Engineering and Works Services Report. 143

Nil

13..... Community and Commercial Services Report. 144

13.1        BUSSELTON - MARGARET RIVER REGIONAL AIRPORT NOISE MANAGEMENT PLAN REVIEW... 144

14..... Finance and Corporate Services Report. 287

14.1        LONG TERM FINANCIAL PLAN 2016/17 TO 2025/26. 287

15..... Chief Executive Officer's Report. 333

15.1        COUNCILLORS' INFORMATION BULLETIN.. 333

16..... Motions of which Previous Notice has been Given.. 347

Nil

17..... Confidential Reports. 347

Nil

18..... Questions from Members. 347

19..... Public Question Time. 347

20..... Next Meeting Date. 347

21..... Closure. 347

 


Council                                                                                      5                                                                        27 April 2016

 

1.               Declaration of Opening and Announcement of Visitors

2.               Attendance 

Apologies

 

Nil

Approved Leave of Absence

 

Nil

3.               Prayer

The Prayer will be delivered by Pastor Nathan Seinemeier from Cornerstone Church.

4.               Public Question Time

Response to Previous Questions Taken on Notice 

Public Question Time

5.               Announcements Without Discussion

Announcements by the Presiding Member 

Announcements by other Members at the invitation of the Presiding Member

6.               Application for Leave of Absence

7.               Petitions and Presentations 

8.               Disclosure Of Interests

 

9.               Confirmation and Receipt Of Minutes 

Previous Council Meetings

9.1             Minutes of the Council  held on 13 April 2016

Recommendation

That the Minutes of the Council  Meeting held 13 April 2016 be confirmed as a true and correct record.

 


 

Committee Meetings

9.2             Minutes of the Finance Committee Meeting held 14 April 2016

RECOMMENDATION

 

1)    That the minutes of the Finance Committee Meeting held 14 April 2016 be received.

 

2)    That the Council notes the outcomes of the Finance Committee Meeting held 14 April 2016 being:

 

a)       The Finance Committee Information Bulletin – February 2016 was noted.

 

b)      The List of Payments Made – February 2016 is presented for Council consideration at Item 10.1 of this agenda.

 

c)       The Financial Activity Statements – Period Ending 29 February 2016 is presented for Council consideration at Item 10.2 of this agenda.

 

d)      The Annual Budget Review – Period Ending 29 February 2016 is presented for Council consideration at Item 10.3 of this agenda.

 

e)      The Draft Schedule of Fees and Charges for the 2016/17 Financial Year Item is presented for Council consideration at Item 10.4 of this agenda.

 

f)        The Whale Viewing Platform Point Picquet – 2015/16 Budget Amendment Item is presented for Council consideration at Item 10.5 of this agenda.

 

g)       The Permit Fees for Commercial use of Berthing Platforms at the Busselton Jetty Item is presented for Council consideration at Item 10.6 of this agenda.

 

h)      The Geographe Leisure Centre – Budget Amendment Item is presented for Council consideration at Item 10.7 of this agenda.

 

i)        The Director, Finance and Corporate Services presented information relating to restricted assets and reserve accounts.

 

j)        The Director, Finance and Corporate Services presented information relating to rating strategies.

 

k)    The Chief Executive Officer presented information relating to elected member allowances 2016/17.

 

 

 


Council                                                                                      7                                                                        27 April 2016

10.             Reports of Committee

10.1           Finance Committee - 14/04/2016 - LIST OF PAYMENTS MADE - FEBRUARY 2016

SUBJECT INDEX:

Financial Operations

STRATEGIC OBJECTIVE:

An organisation that is managed effectively and achieves positive outcomes for the community.

BUSINESS UNIT:

Finance and Information Technology

ACTIVITY UNIT:

Finance

REPORTING OFFICER:

Financial Accountant - Ehab Gowegati

AUTHORISING OFFICER:

Director, Finance and Corporate Services - Matthew Smith

VOTING REQUIREMENT:

Simple Majority

ATTACHMENTS:

Attachment a   List of Payments Made - February 2016  

 

This item was considered by the Finance Committee at its meeting on 14 April 2016, the recommendations from which have been included in this report. 

PRÉCIS

 

This report provides details of payments made from the City’s bank accounts for the month of February 2016, for noting by the Council and recording in the Council Minutes.

 

BACKGROUND

 

The Local Government (Financial Management) Regulations require that when the Council has delegated authority to the Chief Executive Officer to make payments from the City’s bank accounts, that a list of payments made is prepared each month for presentation to, and noting by, Council.

 

STATUTORY ENVIRONMENT

 

Section 6.10 of the Local Government Act and more specifically, Regulation 13 of the Local Government (Financial Management) Regulations; refer to the requirement for a listing of payments made each month to be presented to the Council.

 

RELEVANT PLANS AND POLICIES

 

NA.

 

FINANCIAL IMPLICATIONS

 

NA.

 

STRATEGIC COMMUNITY OBJECTIVES

 

This matter principally aligns with Key Goal Area 6 – ‘Open and Collaborative Leadership’ and more specifically Community Objective 6.3 – ‘An organisation that is managed effectively and achieves positive outcomes for the community’.

 

RISK ASSESSMENT

 

NA.

 

CONSULTATION

 

NA.

OFFICER COMMENT

 

NA.

 

CONCLUSION

 

NA.

 

OPTIONS

 

NA.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

 

NA.

 

COMMITTEE RECOMMENDATION AND OFFICER RECOMMENDATION

 

That the Council notes payment of voucher numbers M111623 – M112729, EF044726 – EF045129, T007223 – T007225, and DD002680 – DD002696; together totaling  $4,769,452.00.

 

 


Council

9

27 April 2016

10.1

Attachment a

List of Payments Made - February 2016

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Council                                                                                      29                                                                      27 April 2016

10.2           Finance Committee - 14/04/2016 - FINANCIAL ACTIVITY STATEMENTS - PERIOD ENDING 29 FEBRUARY 2016

SUBJECT INDEX:

Budget Planning and Reporting

STRATEGIC OBJECTIVE:

An organisation that is managed effectively and achieves positive outcomes for the community.

BUSINESS UNIT:

Finance and Information Technology

ACTIVITY UNIT:

Financial Services

REPORTING OFFICER:

Financial Accountant - Ehab Gowegati

AUTHORISING OFFICER:

Director, Finance and Corporate Services - Matthew Smith

VOTING REQUIREMENT:

Simple Majority

ATTACHMENTS:

Attachment a   Financial Activity Statements - February  

 

This item was considered by the Finance Committee at its meeting on 14 April 2016, the recommendations from which have been included in this report. 

 

PRÉCIS

 

Pursuant to Section 6.4 of the Local Government Act (‘the Act’) and Regulation 34(4) of the Local Government (Financial Management) Regulations (‘the Regulations’), a local government is to prepare, on a monthly basis, a statement of financial activity that reports on the City’s financial performance in relation to its adopted/ amended budget.

 

This report has been compiled to fulfil the statutory reporting requirements of the Act and associated Regulations, whilst also providing the Council with an overview of the City’s financial performance on a year to date basis for the period ending 29 February 2016.

 

BACKGROUND

 

The Regulations detail the form and manner in which financial activity statements are to be presented to the Council on a monthly basis; and are to include the following:

 

§   Annual budget estimates;

§   Budget estimates to the end of the month in which the statement relates;

§   Actual amounts of revenue and expenditure to the end of the month in which the statement relates;

§   Material variances between budget estimates and actual revenue/ expenditure/ (including an explanation of any material variances);

§   The net current assets at the end of the month to which the statement relates (including an explanation of the composition of the net current position).

 

Additionally, and pursuant to Regulation 34(5) of the Regulations, a local government is required to adopt a material variance reporting threshold in each financial year. At its meeting of 23 July 2015, the Council adopted (C1507/208) the following material variance reporting threshold for the 2015/16 financial year:

 

That pursuant to Regulation 34(5) of the Local Government (Financial Management) Regulations, the Council adopts a material variance reporting threshold with respect to financial activity statement reporting for the 2015/16 financial year to comprise variances equal to or greater than 10% of the year to date budget amount as detailed in the Income Statement by Nature and Type/ Statement of Financial Activity report, however variances due to timing differences and/ or seasonal adjustments are to be reported on a quarterly basis.

 

STATUTORY ENVIRONMENT

 

Section 6.4 of the Local Government Act and Regulation 34 of the Local Government (Financial Management) Regulations detail the form and manner in which a local government is to prepare financial activity statements.

 

RELEVANT PLANS AND POLICIES

 

NA

 

FINANCIAL IMPLICATIONS

 

Any financial implications are detailed within the context of this report.

 

STRATEGIC COMMUNITY OBJECTIVES

 

This matter principally aligns with Key Goal Area 6 – ‘Open and Collaborative Leadership’ and more specifically Community Objective 6.3 - ‘An organisation that is managed effectively and achieves positive outcomes for the community’. The achievement of the above is underpinned by the Council strategy to ‘ensure the long term financial sustainability of Council through effective financial management’.

 

RISK ASSESSMENT

 

Risk assessments have been previously completed in relation to a number of ‘higher level’ financial matters, including timely and accurate financial reporting to enable the Council to make fully informed financial decisions. The completion of the monthly Financial Activity Statement report is a treatment/ control that assists in addressing this risk.  

 

CONSULTATION

 

NA

 

OFFICER COMMENT

 

In order to fulfil statutory reporting requirements, and to provide the Council with a synopsis of the City’s overall financial performance on a year to date basis, the following financial reports are attached hereto:

 

§   Statement of Financial Activity

This report provides details of the City’s operating revenues and expenditures on a year to date basis, by nature and type (i.e. description). The report has been further extrapolated to include details of non-cash adjustments and capital revenues and expenditures, to identify the City’s net current position; which reconciles with that reflected in the associated Net Current Position report.

 

§   Net Current Position

This report provides details of the composition of the net current asset position on a year to date basis, and reconciles with the net current position as per the Statement of Financial Activity.

 

 

 

§   Capital Acquisition Report

This report provides year to date budget performance (by line item) in respect of the following capital expenditure activities: 

·   Land and Buildings

·   Plant and Equipment

·   Furniture and Equipment

·   Infrastructure

 

§   Reserve Movements Report

This report provides summary details of transfers to and from reserve funds, and also associated interest earnings on reserve funds, on a year to date basis. 

Additional reports and/ or charts are also provided as required to further supplement the information comprised within the statutory financial reports.

 

COMMENTS ON FINANCIAL ACTIVITY TO 29 FEBRUARY 2016

 

Comments on the financial activity and a brief explanation of the variances is provided below.  For further information, please refer to the report to the Council on the same agenda with regard to the Annual Budget Review, which provides a full analysis of the major variances and projected subsequent impact on the end of year position.

 

Operating Activity

 

§   Operating Revenue

As at 29 February 2016, there is a variance of +5% in total operating revenue, with the following categories exceeding the 10% material variance threshold:  

 

Description

Variance

%

Variance

$000’s

Operating Grants, Subsidies and Contributions

+13%

+$310

Other Revenue

+585%

+$1,923

Interest Earnings

+22%

+$318

Profit on Asset Disposals

+15%

+$2

 

Operating Grants, Subsidies and Contributions (+$310K)

The current variance in this category is primarily attributable to timing differences in the receipt of operating grants, subsidies and contributions +$92K, coupled with the receipt of additional and/or unbudgeted reimbursements +$218K.  

 

Other Revenue (+$1,923K)

This category includes a range of revenue types including fines and penalties, the sale of miscellaneous items and other sundry revenue. The major variance is attributable to the unbudgeted drawdown of the Port Geographe bank guarantees that was the subject of a report to Council at the 23 March 2016 meeting.

 

Interest Earnings (+318K)

There is a current favourable variance of approximately +$281K in collective municipal, reserve and restricted interest earnings, with individual variances of approximately -$46K, +$146K and +$181K respectively. Also, there is a current favourable variance of approximately +$37K in relation to rates related interest charges. Late payment interest charges are tracking above year to date budget estimates by +$27K and instalment plan interest charges are currently tracking approximately +$10K above year to date budget projections.

 


 

Profit on Asset Disposals (+$2K)

The current minor variance remains attributable to book profits on the sale of assets. It should be noted that this is an accounting book entry, and has no direct impact on the surplus/ deficit position.

      

§   Operating Expenditure

As at 29 February 2016, there is a variance of -7% in total operating expenditure, with the following categories exceeding the 10% material variance threshold:  

 

Description

Variance

%

Variance

$000’s

Materials and Contracts

-23%

-$2,347

Other Expenses

-10%

-$196

Allocations

+16%

+$212

Loss on Asset Disposal

+37%

+$23

 

Materials and Contracts (-$2,347K)

The Materials and Contracts operating expenditure category comprises a wide range of expenditure types. The current variance is attributable to both favourable and adverse variances (of varying magnitudes) across a range of diverse activities. Material reporting variances are as follows:

 

§ Maintenance of Buildings

There is a favourable variance of approximately -$181k in this activity on a year to date basis, with the major contributors being building maintenance services -$47K and contract cleaning costs -$134K. A portion of the variance is attributed to timing and is expected to be expended by 30 June 2016.   

 

§ Contractors

There is a favourable year to date variance of approximately -$966k in collective contractors’ expenditure. This expenditure type is comprised of a significant range of projects, and a number of individual variances (favourable and adverse) are evident throughout. The following contractor expenditure variances have been highlighted for comment: 

 

1.    Busselton Jetty contractor costs are under budget year to date by approximately -$334K. Jetty works are funded from the jetty reserve and hence this variance will have no impact on the City’s year end net financial position; 

2.    Provence Estate maintenance presents a favourable contractor variance of -$155K as the public open space areas have not yet been handed over to the City.  It should be noted that the portion of the budget to be funded from the specified area rates cannot be drawn down if expenditure has not occurred within the area. 

3.    Vasse Newtown presents a favourable contractor variance of -$110K; however this saving will be offset against expenditure in other areas of the City. 

4.    Refuse sites presents a favourable contractor variance of -$151K.  Variances in waste services will be offset against the Waste Reserve and therefore have no impact on the City’s net financial position.

 

§ Fleet Expenses – Fuel

The fleet fuel expenditure reflects a favourable variance of -$241K, largely due to lower fuel prices.

 

§ Engineering Administration and Projects

Engineering Administration and Projects reflects a favourable variance of -$300k. This variance represents the annual payment to the Department of Transport in relation to the Port Geographe management deed which was outstanding as at 29 February 2016. It is noted the payment has been processed during March 2016.

 

Other Expenditure (-$196K)

Other Expenditure reflects a favourable variance of approximately -$196K attributable to Members of Council expenses (timing difference) and Community Services administration, events marketing and promotions. Marketing funds have not been fully expended with the halt to the MRBTA recharge campaign as a result of the amalgamation of GBTA/AMRTA and changes to regional branding.

 

It is noted that Council has resolved (resolution C1510/293) to transfer $150K from the differential rate marketing funds into new Airport Reserve specifically for marketing/support of Airport development project.

 

Allocations (+$212K)

The variance in Allocations is largely attributable to plant and overhead related allocations, which due to the nature of this activity is routinely subject to timing variances.   It is anticipated that in line with historical trends, that the variance will gradually decrease as the year progresses.

 

Loss on Asset Disposal (+$23K)

The Loss on Asset Disposal represents adverse book losses on the sale of sundry plant items and vehicles. It should be noted that this is a book entry only, and has no direct impact on the surplus/ deficit position.   

   

Capital Activity

 

§   Capital Revenue

As at 29 February 2016, there is a variance of -67% in total capital revenue, with the following categories exceeding the 10% material variance threshold:  

 

Description

Variance

%

Variance

$000’s

Proceeds from Sale of Assets

-34%

-$162

Transfer from Restricted Assets

-71%

-$1,060

Transfer from Reserves

-80%

-$4,595

 

Proceeds from Sales (-$162K)

The Proceeds from Sale of Assets category recognises the estimated sale or trade-in value of ‘heavy and light’ plant items budgeted to be replaced during the financial year. The current adverse variance is largely reflective of the timing difference in the lower Plant and Equipment capital expenditure on a year to date basis.

 

Transfer from Restricted Assets (-$1,060K)

The variance in Transfers from Restricted Assets results largely from the budgeted $1.5M transfer associated with the Busselton Regional Airport development. As at 29 February 2016, no transfer has been processed, as project expenditure (year to date actual $600k) has not yet reached this value (net -$1.5m).

 

This variance is partly offset by refunds in bonds and deposits of +$440K as at the end of February where all obligations have been fulfilled to authorise the return of funds.  The City does not budget for these transactions, and as such, any material variance will be reported accordingly.

 

Transfer from Reserves (-$4,595K)

The variance in Transfers from Reserves is attributed to the budget transfer of $4.5M associated with the new Civic and Administration Centre building. A significant timing variance is reflected as at 29 February 2016, as transfers are not processed until after funds have been expended or invoiced.  It is anticipated that the end of year position will be in line with the budget.

 

§   Capital Expenditure

As at 29 February 2016, there is a variance of -40% in total capital expenditure, with the following categories exceeding the 10% material variance threshold: 

 

Description

Variance

%

Variance

$000’s

Land and Buildings

-84%

-$10,409

Plant & Equipment

-41%

-$821

Furniture and Equipment

-24%

-$93

Infrastructure

-30%

-$4,924

Transfers to Restricted Assets

+55%

+$659

The attachments to this report include detailed listings of the following capital expenditure (project) items, to assist in reviewing specific variances:

§   Land and Buildings

§   Plant and Equipment

§   Furniture and Equipment

§   Infrastructure

 

CONCLUSION

 

As at 29 February 2015, the overall operating revenue is +$3M above year to date budget. This is mainly attributable to the unbudgeted additional revenue of +$1.8M received due to the drawdown of the Port Geographe bank guarantee, and timing differences associated with the receipt of other revenue (i.e. contributions, reimbursements, interest etc.). Expenditure categories are currently tracking below budget by -$3M, at this time however the majority of variances have been identified as timing issues only. More significant variances are evident in the capital revenue and expenditure categories.  Capital revenue performance is highly dependent upon the level of capital expenditure (i.e. acquisitions and construction). Capital expenditure performance to the end of February is below year to date budget projections across a number of classes; which significantly contributes to the reduced capital revenue levels.

 

Please also refer to the report to the Council on the same agenda with regard to the Annual Budget Review which is based on the City’s financial performance to 29 February 2016. The report includes a projection of the City’s financial performance to 30 June 2016 and endeavours to identify significant budget variances and if required recommends remedial action to be instigated as necessary prior to financial year end.  The Annual Budget Review for 2015/2016 has not identified any specific remedial action and foreshadows an overall net favourable variance to budget.

 

OPTIONS

 

The Council may determine not to receive the statutory financial activity statement reports.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

 

NA

 

COMMITTEE RECOMMENDATION AND OFFICER RECOMMENDATION

 

That the Council receives the statutory financial activity statement reports for the period ending 29 February 2016, pursuant to Regulation 34(4) of the Local Government (Financial Management) Regulations.

 

 


Council

41

27 April 2016

10.2

Attachment a

Financial Activity Statements - February

 


 


 


 


 


 


 


 


 


 


 


Council

43

27 April 2016

10.2

Attachment a

Financial Activity Statements - February

 


Council                                                                                      63                                                                      27 April 2016

10.3           Finance Committee - 14/04/2016 - ANNUAL BUDGET REVIEW - PERIOD ENDING 29 FEBRUARY 2016

SUBJECT INDEX:

BUDGET PLANNING AND REPORTING

STRATEGIC OBJECTIVE:

An organisation that is managed effectively and achieves positive outcomes for the community.

BUSINESS UNIT:

Finance and Information Technology

ACTIVITY UNIT:

FINANCIAL SERVICES

REPORTING OFFICER:

Financial Accountant - Ehab Gowegati

AUTHORISING OFFICER:

Director, Finance and Corporate Services - Matthew Smith

VOTING REQUIREMENT:

Simple Majority

ATTACHMENTS:

Nil

 

This item was considered by the Finance Committee at its meeting on 14 April 2016, the recommendations from which have been included in this report. 

 

PRÉCIS

 

Between January and March in each financial year, a local government is to carry out a review of its annual budget for that year. The Council is required to consider the review submitted to it and determine (by absolute majority) whether or not to adopt the review, any parts of the review or any recommendations made in the review.

 

This report, based on the City’s financial performance for the period ending 29 February 2016, has been compiled to fulfil the statutory reporting requirements of the Local Government Act and associated Regulations in respect of the annual budget review process. 

 

In order to meet regulatory requirements the annual budget review is to be submitted to the Council by 30 April 2016

 

BACKGROUND

 

The requirement for a local government to carry out an annual budget review is prescribed via Regulation 33A of the Local Government (Financial Management) Regulations (the ‘Regulations’). A copy of the review, including the Council's determination in respect of the review, is to be provided to the Department of Local Government and Communities within 30 days of the date of the applicable Council Resolution. The Regulations require that the budget review must:

 

(a)       consider the local government's financial performance in the period beginning on 01 July and ending no earlier than 31 December in that financial year; and

 

(b)       consider the local government's financial position as at the date of the review; and

 

(c)       review the outcomes for the end of the financial year that are forecast in the budget.

 

Essentially, the purpose of an annual budget review is to ensure that a local government conducts a review of its financial performance at an appropriate time in the financial year such that any significant budget variances can be identified and remedial action instigated as necessary; prior to financial year end.

 

 


 

STATUTORY ENVIRONMENT

 

Regulation 33A of the Local Government (Financial Management) Regulations details the requirement for a formal budget review to be completed annually.

 

RELEVANT PLANS AND POLICIES

 

Not applicable.

 

FINANCIAL IMPLICATIONS

 

Any short term financial implications attributable to this review are addressed within the context of this report.

 

Long-term Financial Plan Implications

 

The primary purpose of this report is to review the City’s current and projected financial performance for the financial year ending 30 June 2016. Whilst there is limited direct consideration of long term financial plan implications within the report, the City’s current year financial performance will nonetheless assist in informing the development of next year’s long term financial plan. 

 

STRATEGIC COMMUNITY OBJECTIVES

 

This matter principally aligns with Key Goal Area 6 – ‘Open and Collaborative Leadership’ and more specifically Community Objective 6.3 - ‘An organisation that is managed effectively and achieves positive outcomes for the community’. The achievement of the above is underpinned by the Council strategy to ‘ensure the long term financial sustainability of Council through effective financial management’.

 

RISK ASSESSMENT

 

Risk assessments have been previously completed in relation to a number of ‘higher level’ financial matters, including timely and accurate financial reporting to enable the Council to make fully informed financial decisions. The completion of an annual budget review is a treatment/ control that will assist in addressing this risk.  

 

CONSULTATION

 

Not applicable.

 

OFFICER COMMENT

 

The Annual Budget Review has been compiled, as in previous years, based on the ‘Nature and Type’ reporting structure to maintain consistency with monthly Financial Activity Statement reporting. The review has concluded that the City’s financial performance to 29 February 2016 is satisfactory. Furthermore, as no net overall material adverse variance has been projected as part of the review, specific remedial actions are not required to be implemented.

 

Notwithstanding this, the report has identified a number of year to date favourable and adverse variances and projects variances will be remain evident as at 30 June 2016.  In many instances, the variances relate to items that are fully offset and, as such, will not expected to directly impact on the overall budget performance at financial year end. These matters are discussed within the body of this report, with the following Executive Summary providing a synopsis of those areas projected to potentially impact on the City’s overall net budget performance at financial year end.

 

Executive Summary

 

Operating Revenue

§ Rates revenue is projected to exceed the annual budget estimates by up to +$50k;

§ Operating grants, subsidies and contributions is projected to be largely in line with the annual budget estimates;

§ Fees and charges is projected to exceed the annual budget estimates by up to +$120k;

§ Other revenue is projected to be less than the annual budget estimates by up to -$50k;

§ Interest earnings revenue is projected to be less than the annual budget estimates by up to -$100k;

§ Non-operating grants, subsidies and contributions is projected to be cost neutral due to fact that should grants be not received, then the subsequent expenditure will not be incurred.

 

In summary, net operating revenue is projected to be materially in line with the annual budget estimates. 

 

Operating Expenditure

§ Employee Costs is projected to have a slight favourable variance to the annual budget estimates;

§ Materials and Contracts will be underspent on the whole however this will not affect the end of year position as material variances within this category will be transferred to equity in accordance with operational practice, with the exception of fuel which is projected to be less than the annual budget estimates by up to -$200k;

§ Utilities (gas, electricity, water etc.) is projected to be less than the annual budget estimates by up to -$90k;

§ Insurance Expenses is projected to be less than the annual budget estimates by up to -$60k;

§ Other Expenditure is projected to have a nominal variance and come in materially in line with the annual budget estimates;

§ Interest Expenses is projected to be less than the annual budget estimates by up to -$10k.

 

In summary, net operating expenditure is projected to be slightly lower than the annual budget estimates with a projected favourable variance of approximately $360k. 

 

Capital Revenue

§ There is material capital revenue variances estimated as at 30 June 2016, however these are either due to timing issues or are attributable to fully funded projects and therefore will not impact on end of year position.

 

Capital Expenditure

§ There is material capital expenditure variances estimated as at 30 June 2016, however these are either due to timing issues or are attributable to fully funded projects and therefore will not impact on end of year position.

 

The aforementioned estimation is predicated on numerous assumptions and is also exclusive of any potential/identified carry over items. Carry over items will ultimately form part of the end of year position, but will be allocated as part of the 2016/17 budget. The projected closing surplus position may also be impacted by any extraordinary items that may arise during the remainder of the financial year.   

 

The Executive Summary only highlights variances that are projected to have a material net impact on the City’s financial performance as at financial year end. There are numerous other variances estimated as at 30 June 2016, however in most instances, there will be offsetting variances to negate any net budget impact. This includes expenditures (both operating and capital) funded from reserves, grants, contributions, or borrowings. It is nonetheless considered appropriate that the Council is provided with an overview of the projected annual budget performance in all relevant income and expenditure activities. Accordingly, the following sections of this report provides a more detailed summary of financial performance against each of the operating revenue and expenditure categories (by nature and type), and also the capital revenue and expenditure categories (by classification/ description).

 

OPERATING REVENUE

 

As at 29 February 2016, there is a variance of approximately +$3m (or +5%) in respect of total operating revenue activities.  This variance is detailed as follows:

 

Description

Actual

YTD

$

Amended Budget YTD

$

Amended Budget

$

Variance

YTD

$

Variance YTD

%

Rates

38,992,419

38,783,970

38,998,079

+208,449

+0.54%

Operating Grants, Subsidies and Contributions

 

2,655,100

2,344,825

3,580,496

+310,275

+13.23%

Fees and Charges

 

12,154,325

12,053,390

15,099,480

+100,935

+0.84%

Other Revenue

 

2,251,985

328,596

534,090

+1,923,389

+585.34%

Interest Earnings

 

1,733,673

1,415,421

2,039,550

+318,252

+22.48%

Non-operating Grants, Subsidies and Contributions

 

4,854,414

4,720,347

37,451,666

+134,067

+2.84%

Profit on Asset Disposals

 

12,876

11,207

16,007

+1,669

+14.89%

TOTAL

62,654,792

59,657,756

97,719,368

+2,997,036

+5.02%

 

An overview of the financial performance in each activity is provided as follows:

 

Rates (YTD variance: +$208K)

The current favourable variance is primarily attributable to interim rating, predominantly in the improved residential and commercial rating zone. As at the end of February, the year to date actual is only below the annual budget allocation by $5k. 

 

Historically, net rates revenue tends to level off towards the end of the financial year, as overpayments and other refunds are processed. However, it is estimated that further valuation schedules will be received prior to financial year end, resulting in a net increase in the current financial year’s interim rates revenue. Whilst the financial impact of the new valuations is unable to be accurately determined at this stage, it is anticipated that this could be in the vicinity of $50k.

 

For the purpose of this review, it is therefore estimated that Rates revenue will exceed annual budget estimates by up to +$50k as at financial year end.  

 

Operating Grants, Subsidies and Contributions (YTD variance: +$310K)

The current variance is primarily attributable to timing differences in the receipt of operating grants, subsidies and contributions +$92k, coupled with the receipt of additional and/or unbudgeted reimbursements +$218k.  

 

With respect to operating grants, performance is generally in line with budgeted expenditure therefore it is not expected that there will be any material variances which will impact on the closing surplus/deficit position as at financial year end.      

With regards to reimbursements, current favourable variances include the reimbursement of Fire Prevention costs, workers compensation and insurance related matters. Whilst primarily reimbursing expenditures already incurred, the fire prevention reimbursement does include an unbudgeted amount of approximately $66k that relates to last year’s final reconciliation, which will contribute to the closing surplus/deficit position. Current adverse variances in reimbursements include legal expenses associated with rates administration, and the reimbursement of workers compensation costs relating to previous claims years -$40k.       

 

For the purposes of this budget review, the fire prevention reimbursement of $66k represents revenue that will assist in the determination of the closing surplus/deficit position as at 30 June 2016.  However it is unknown at this stage if the insurance recovery will occur, therefore this may negate any expected surplus. Consequently, performance in this activity is unlikely to have a material net impact of the closing surplus/deficit position.

 

Fees and Charges (YTD variance: +$101K)

The current variance in the Fees and Charges is attributable to a range of variances, both favourable and adverse.  The major contributors, by dollar value, are as follows:

 

 

Description

YTD Variance

$

YTD Variance

%

Building Fees

(39,018)

-7.64%

 

Health Fees

(43,777)

-17.73%

 

Planning Fees Statutory

155,288

44.92%

 

Planning Fees Strategic

(38,431)

-57.64%

 

Rangers Fees

63,349

56.01%

 

Refuse Service Fees

166,903

2.43%

 

Council Facility Service Fees

(25,782)

-1.86%

 

Caravan Park Fees

(213)

-0.02%

 

Aged Housing

4,713

1.61%

 

Airport Fees

(160,880)

-20.86%

 

Cemetery Fees

(10,856)

-9.29%

 

Other Fees & Charges

29,639

6.26%

 

 

100,935

+0.84%

 

 

Responsible Directorates have provided commentaries in relation to the aforementioned variances:  

 

§ Building Fees

The unfavourable year to date variance of -$39k is attributable to a range of variances including building permits -$86k, swimming pool inspection fees +$24k, and R-Codes approval fees +$23k. Forecast year end variances are building permits -$40k, swimming pool fees +$3k, and R-Codes approval fees +$29k.

 

Based on the above information it is anticipated that the building fees at year end will report a net nominal variance.  Consequently, performance in this activity will not have any net material impact on the closing surplus/deficit position.

 

§ Health Fees

The adverse year to date variance of -$44k is attributable to a range of variances including license fees for street traders +$7k, other health license fees (including S39 Cert.) +$5k, water sampling fees -$20k, concert license fee/ service charges -$12k,  inspection fees for food premises +$32k, and holiday home renewal fee -$55k.  Overall revenue is reported to be consistent with budget, with variances due to timing differences at this time. Consequently, performance in this activity will not have any net material impact of the closing surplus/deficit position.

 

§ Statutory Planning Fees

The favourable year to date variance of +$155k is attributable to development application fees. It is forecast that at year end development application fees will remain favourable by approximately +$100k. This is due to once off large commercial applications received in the current year (Coles Vasse, Busselton Central and West Street).  Consequently, performance in this activity will have an impact of the closing surplus/deficit position.

 

§ Strategic Planning Fees

The unfavourable year to date variance of -$38k is attributable to rezoning charges -$23k and process guide plans -$15k. This includes timing differences and it is uncertain at this stage as to the impact to the yearend position. Consequently, performance in this activity is not anticipated to have a net material impact of the closing surplus/deficit position.

 

§ Rangers Fees

The favourable year to date variance of +$63k is mainly attributable to dog registration fees +$61k. Overall revenue is reported to be consistent with budget, with variances due to timing differences at this time. Consequently, performance in this activity will not have any net impact of the closing surplus/deficit position.

 

§ Refuse Service Fees

The favourable year to date variance of +$167k is attributable to a range of variances including refuse removal fees (domestic) +$51k, tipping fees +$82k, and recycling fees (domestic) +$26k. The favourable refuse removal and recycling fees (domestic) is due to higher interim rates through property growth compared to relatively conservative growth estimates used for budget purposes.  With regard to tipping fees there has been an increase in the amount of commercial waste collected, with some of this attributable to a higher level of building activity and housing construction within the City.  All the above variances will have no net impact on the City’s year end position as any surplus in excess of budget will form part of the net position of waste, which will be transferred to the Waste Reserve.    

 

§ Council Facility Service Fees

Of the -$26k adverse variance, -$21k relates to the Naturaliste Community Centre (NCC), where certain revenue streams have proven to be unachievable, e.g. a new vacation care program due to licensing delays and kiosk/café services which have not proved viable. The revenue deficit however, will be fully offset by an under-spend in expenses to ensure there is no impact to the net operating position.

 

The remaining variance is due to a range of variances across Council facilities. Performance in this activity is not anticipated to have any net material impact of the closing surplus/deficit position.

 

§ Aged Housing Fees

The favourable year to date variance of +$5k is attributable to aged housing rental.  As a nominal variance is anticipated by financial year end, aged housing fees is not anticipated to have a net impact on the closing surplus/deficit position.

 

§ Airport Fees

The adverse year to date variance of -$161k is attributable to a range of variances including airport hangar leases -$8k, airport landing and take-off fees -$65k,  airport FIFO car parking income -$27k, head taxes/passenger fee -$31k, airport fuel agency fees -$20k, and airport fuel facility leasing fees -$9. With regard to airport landing fees and head taxes/passenger fee, these are expected to be on target at the end of the financial year. Car parking fees, airport fuel agency fees, airport fuel facility leasing fees and hangar leases are expected to be down by similar variance amounts at the end of the financial year due to decreases in car parking patronage and the jet fuel and new hangar projects not commencing.  Subsequently the revenue targets will not be met.  Expenditure however is also below budget. 

 

The net operating surplus will be less than anticipated however as the Airport surplus is transferred to the Airport Infrastructure Reserve it has a net neutral impact on the net closing position.

 

§ Cemetery Fees

Cemetery fees have a year to date variance of -$11k. Cemetery fee revenue is difficult to predict and based on the comparatively immaterial values involved, it is assumed that budget estimates will be achieved. Consequently, performance in this activity will not have any net material impact of the closing surplus/deficit position.

 

§ Other Fees and Charges

The favourable year to date variance of +$30k is attributable to a range of fees and charges including the provision of property information -$30k, license fees revenue -$10k, lease payments on commercial properties +$5k, art sales commission +$14k, and supervision fees +$50k. With regard to the collection of supervision fees this is highly variable based on the clearance of new subdivision areas linked to housing construction activity and the demand for vacant land.  Although difficult to predict, based on current information available, it is anticipated this will represent a surplus to the City in the order of +$20k over the annual budget. This amount may be higher if a large subdivision is given clearance.    

 

Overall, based on the above analysis of Fees and Charges, a favourable variance is projected of +$120k, therefore performance in this activity will have an impact on the end of year closing position.

 

Other Revenue (YTD variance: +$1.923M)

This category includes a range of revenue types including fines and penalties, the sale of miscellaneous items and other sundry revenue. The current variance in respect of these activities is summarised as follows:

 

§ Fines and Penalties Revenue

As at 29 February 2016, there is an adverse variance of approximately -$59k in this area, with the main contributors being Bushfire related fines -$44k and parking fines -$11k. Revenue for bushfire related fines is projected to be lower than the budget estimate of $60k, with inspections undertaken to date indicating a higher level of compliance and less than projected number of infringements issued for non-compliance. The projected budget revenue estimate has therefore been revised down to $21k, being an expected adverse variance of -$39k on the end of year financial position.  With regard to parking fines, the decrease in revenue may be due to community awareness of parking time restrictions resulting in shopper behavioural changes. Revised projected budget revenue is estimated at $78k with the resultant adverse variance -$12k affecting the end of year financial position. 

 

§ Sale of Miscellaneous Items

As at 29 February 2016, there is an adverse variance of approximately -$51k, primarily due to the sale of scrap metal.  Current scrap metal prices are lower than anticipated and at current price, is not expected to meet costs associated with the disposal and therefore metal will be stock piled at this time.  Accordingly, scrap metal sales are estimated to finish the year approximately $90k under budget. This will have no net impact on the City’s year end position as any surplus/(deficit) will form part of the net position of waste which is transferred to/from the Waste Reserve.

 

§ Other Sundry Revenue

As at 29 February 2016, there is a favourable variance of approximately $2.034m in this area. This variance is mainly attributable to the unbudgeted drawdown of the Port Geographe bank guarantees. In accordance with Council Resolution (C1603/065), the funds received will be transferred to reserve accounts and as a consequence will not impact on the closing surplus/deficit position.

 

Based on the analysis of Other Revenue, there will be an overall adverse net impact on the closing position of approximately -$50k.

 

Interest Earnings (YTD variance: +$318K)

The Interest Earnings activity includes interest earnings on municipal, reserve and restricted funds, as well as rates related interest revenue. The year to date and projected end of financial year, performance in each of these areas is summarised as follows:

 

§ Municipal, Reserves and Restricted Interest

There is a current overall favourable variance of approximately +$281k in collective municipal, reserve and restricted interest earnings.  However, individual variances reflect an adverse variance for municipal funds of approximately -$46k, with favourable variances in reserves and restricted funds of +$146k and +$181k respectively. This is due to higher than anticipated balances.

 

Based on current projections, it is expected that by financial year end, municipal interest earnings will fall short of annual budget estimates by up to -$100k. This shortfall is partially attributable to self-funding the City’s overdraft in the early part of the financial year and the lower than anticipated cash flow projections. This adverse variance will affect the end of year financial position.

 

Reserve interest earnings are estimated to exceed annual budget estimates by up to +$200k. This is mainly attributable to a higher than anticipated  balance which included the $18m loan funds for the Administration building redevelopment, which at the end of February is yet to be utilised to offset any expenditure.

 

Interest on Restricted Funds will exceed budget by +$900k. Although this additional income relates to airport funds which have not been budgeted for, it should be noted that the Airport grant agreement requires these funds be applied towards the Airport project.

 

Reserve and restricted cash interest earnings do not directly impact on the City’s closing surplus/ deficit position, as this revenue is reallocated to the ‘Transfers to Reserves/ Restricted Assets’ capital equity account. Notwithstanding this, the additional interest earnings do represent a further injection of funds to the City’s Reserve and Restricted cash accounts. Conversely, municipal interest earnings form part of the City’s general revenue and consequently, the estimated shortfall of up to -$100k will directly impact on the closing position.

 

 

§ Rates Related Interest (Instalment Plan and Late Payment)

There is a current favourable variance of approximately +$37k in relation to rates related interest charges. Late payment interest charges are tracking above year to date budget estimates by +$27k and instalment plan interest charges are currently tracking approximately +$10k above year to date budget projections. This interest is predominantly raised early in the financial year (subsequent to the initial instalment payment date), and as such, the current annual budget variance is not expected to materially increase. For the purpose of this review, it is projected that rates related interest earnings will not exceed annual budget estimates by financial year end.                  

 

In summary, it is anticipated that the overall Interest Earnings activity will be in excess of annual budget estimates by up to +$1m as at 30 June 2016. However, for the purposes of estimating a closing surplus/deficit position, a net adverse variance of some -$100k is projected which is attributable to the shortfall of interest earned on municipal funds.

 

Non-operating Grants, Subsidies and Contributions (YTD variance: +$134K)

This category reflects a net favourable variance of +$134k, with significant individual variances summarised below:

 

·    Busselton Foreshore provision of services and auxiliary works is -$986k.  This is due to the $4.5m Royalties for Regions grant being pending, with likely notification in June or July.

·    Foreshore east youth precinct (skate park and adventure playground) is +$615k.  This is due to timing differences;

·    Busselton shark net non-operating grant is +$100k. This is due to a timing difference as the Government Grant was received earlier than initially anticipated;

·    Tuart Drive Bridge (0239A) is +$285k.  This is due to timing differences;

·    Metricup Road Bridge (0239A) is -$203k. The City has been informed by Main Roads WA that this project will not go ahead this financial year.  The proposed detour around this bridge was deemed excessive (approx. 11kms) and so the bridge works will be carried out next financial year with a temporary detour planned to be constructed on private land;

·    Roads to recovery road construction works (23 road works) is net +$605k. This is a timing difference only with the City claiming the Federal Government Grant in advance of the second payment quarter (Oct-Dec) based on the works predicted  to be carried out;

·    Main roads road construction projects is net -$75k, of which the Strelly Street design project is -$60k. It was anticipated that the City would claim more of the contracted road design works earlier in the year.  These designs are linked to deliberations associated with the Busselton traffic study, and thus there have been some delays in finalising designs;

·    Busselton bypass – Fairway to Kangaroo Gully is -$240k. This dual use path project was impacted by delays in obtaining approvals from Main Roads to work within their road reserve. This project has now commenced and represents a timing difference only at this time;

·    Bus Bay and Shelters is -$180k.  This project was delayed owing to complex negotiations with the Department of Environment and Conservation regarding the clearing of land.  These works have now commenced.

 

Overall grant funding variances are primarily due to timing differences.  However it must be noted that where projects are not proposed to commence in 2015/16, the associated grant funding will not be raised until the expenditure has been incurred.

 

The above variances will not have any direct impact on the closing surplus/deficit position as long as grants for works completed are raised on or before 30 June 2016. Conversely, where grants are received in advance of works being completed (by 30 June 2016), any unspent component of the associated grant funding will be required to be transferred to restricted assets.        

 

With regards to the favourable variances in contributions of +$217k, this will not have any direct impact on the closing surplus/deficit position as these funds will be transferred to restricted accounts to be used in the future for the purpose they were taken for.    

                  

Profit on Asset Disposals (YTD variance: +$2K)

The current minor variance is attributable to book profits on the sale of assets. It should be noted that this is an accounting book entry, and has no direct impact on the surplus/deficit position.       

OPERATING EXPENDITURE

 

As at 29 February 2016, there is a variance of approximately -$2.9m (or -7.2%) in respect of total operating expenditure activities.  This variance is detailed as follows:

 

Description

Actual

YTD

$

Amended Budget YTD

$

Amended Budget

$

Variance

YTD

$

Variance YTD

%

Employee Costs

 

16,679,104

17,331,302

26,413,101

-652,198

-3.76%

Materials and Contracts

 

7,832,067

10,178,818

15,120,925

-2,346,751

-23.06%

Utilities (Gas, Electricity, Water etc.)

 

1,454,351

1,547,396

2,321,370

-93,045

-6.01%

Depreciation on Non-current Assets

 

9,949,433

9,761,600

14,636,430

+187,833

+1.92%

Insurance Expenses

 

663,483

736,624

737,370

-73,141

-9.93%

Other Expenditure

 

1,706,456

1,902,406

3,028,622

-195,950

-10.30%

Allocations

 

-1,089,757

-1,302,140

-1,899,950

+212,383

+16.31%

Interest Expenses

 

680,845

691,046

1,340,955

-10,201

-1.48%

Loss on Asset Disposals

 

85,066

62,016

68,867

+23,050

+37.17%

TOTAL

37,961,048

40,909,068

61,767,690

-2,948,020

-7.21%

 

An overview of the financial performance in each activity is provided as follows:

 

Employee Costs (YTD variance: -$652K)

Whilst reflecting an overall favourable variance as at 29 February 2016, this category presently includes numerous individual variances (both favourable and adverse). On the whole however, this category can be broken into three main sections, all of which have favourable variances; salaries -$436k, wages -$88k, and other employee costs -$128k.

 

In order to project an end of financial year variance, the current expenditure in each account has been extrapolated and then amended for any known adjustments.  Impacting factors taken into account include current vacant positions, historical expenditure patterns, known additional costs with regard to workers compensation insurance +$67k, and the final adjustment attributable to the recognition of accrued employee cost to financial years end.  Overall, it is projected there will be a slight favourable variance as at 30 June 2016. There are a range of matters however that can directly impact on the final Employee Costs, and as such it must be reiterated that this projection is based on available information at the time of compiling this report.  

 

Materials and Contracts (YTD variance: -$2.347M)

The Materials and Contracts category comprises a wide range of expenditure types, and presently incorporates in the order of 142 separate accounts. The current variance is attributable to both favourable and adverse variances (of varying magnitudes) across a range of diverse activities. Consequently, this report will highlight those material variances which are either of interest due to materiality or are expected to have a direct impact on the City’s closing surplus/deficit position as at 30 June 2016.

§ Maintenance of Buildings

There is a favourable variance of approximately -$181k in this activity on a year to date basis, with the major contributors being building maintenance services -$47k and contract cleaning costs -$134k.

 

It is expected that the building maintenance services expenditure may fall short of annual budget estimates by up to -$100K as at 30 June 2016. Expenditure against buildings year to date has been less than budgeted due in part to Facility staff spending a considerable amount of their time on relocating staff for the new administration building project.  It is anticipated however that the level of expenditure will increase in the second half of the year.  To this end it is projected that building maintenance services and overall cleaning costs at years end will come within budget expectations.

 

§ Contractors

There is a favourable year to date variance of approximately -$966k in collective contractors’ expenditure, comprised of a significant range of projects and individual variances (favourable and adverse). However, for the purposes of this review, the following contractor expenditure variances have been highlighted for comment. 

 

Busselton Jetty contractor costs are under year to date budget estimates by approximately -$334k. Jetty works are funded from the jetty reserve and hence this variance will have no impact on the city’s year end net financial position.  That said, there are significant works to be undertaken on the jetty in the next four months and so much of this budget will be expended. 

 

Contractor costs associated with Provence Estate maintenance are under budget by -$155k as public open space areas within the estate is yet to be handed over to the City; therefore the maintenance of the area is not yet the responsibility of the City.  A portion of the allocated budget is funded from the specified area rates and this draw down can only occur if expenditure is within the specified area.  Any portion of the variance that represents a saving to the City will be offset and used to facilitate works in other activity areas within parks and gardens. 

 

There is a favourable contractor cost variance totalling -$110k attributable to Vasse Newtown.  The saving however will offset expenditure in other areas of the City and, similar to Provence Estate the Vasse Newtown budget is linked in part to the specified area rate with a draw down only being possible if relevant expenditure is incurred.

 

Finally, there is a favourable contractor cost variance totalling -$151k attributable to refuse sites. It is anticipated there will be significant savings as at 30 June 2016, however this will not impact on the City’s net financial position, as any saving will be transferred to the Waste Reserve.

 

§ Consultancies

As at 29 February 2016, the collective consultancies budget reflects a favourable year to date variance of approximately -$201k, with the variance attributable to a range of individual consultancy allocations. Based on projections to 30 June 2016, it is estimated that the annual operating budget allocation of approximately $677k will be underspent by up to approximately -$70k.  This will not however affect the end of year position as, as outlined below, material variances identified in this category will be transferred to reserves in accordance with operational practice.

 

The major contributors to the projected variance include:

 

·    Airport operations consultancy budget is on budget compared to the year to date allocation and there may be nominal savings at the end of the year  of -$5-10k;

·    Property and business development consultancy budget is down due to delays in progressing the foreshore commercial sites (cafes, hotel and microbrewery sites) and the need to seek either legal/commercial advice. It is expected that some funds will be expended prior to the end of financial year however there is likely to be unspent funds of approximately -$10k. This underspend will form part of the end of year airport reconciliation and will therefore will not affect the City’s net current position;

·    A $100k consultancy budget was provided to facilitate works towards the development of a future tip site.  It is anticipated that $60k of this budget will not be required.  This will have no impact on the City’s net financial position as this is being funded from the Waste Reserve. 

 

§ Fleet expenses – Fuel

As at 29 February 2016, the fleet expenditure associated with fuel reflects a favourable year to date variance of -$241k. This is mainly attributable to decreasing fuel prices with the overall expenditure on fuel being significantly less than what was budgeted for this financial year.  That said, overall fuel usage is historically higher in the second half of the year as construction activity is greater.  Nonetheless, a fuel saving in the order of -$200k is anticipated based on current fuel prices.

 

§ Engineering Administration and Projects

There is a favourable variance within this area of -$300k. This represents the annual payment that is yet to be made to the Department of Transport in relation to the Port Geographe management deed. It is noted the payment has been processed during March 2016. As this item is fully reserve funded, it will have no impact on the end of year position.

 

Utilities - Gas, Electricity, Water etc. (YTD variance: -$93K)

The current variance is attributable to favourable variances in electricity charges -$37k, telephone charges -$14k and water charges -$42k. Whilst due in part to timing differences in the receipt and payment of utility invoices, end of financial year savings are nonetheless projected in several of the utility categories.

 

§ Electricity Charges

The electricity charges overall favourable variance -$37k is due to a range of individual variances (both favourable and adverse), with the more significant savings reflected in the major electricity users, including the Geographe Leisure Centre -$11k, the Kookaburra Caravan Park -$6k, and the Administration Building -$26k.  An analysis undertaken to forecast end of year expenditure, estimates that a favourable variance of up to -$40k will be evident in electricity charges as at financial year end.

 

§ Telephone Charges

The telephone charges overall favourable variance -$14k is primarily due to the costs associated with mobile phones being -$4k down and call centre costs -$1k down as compared to the year to date budget. An analysis at this time indicates that a nominal saving may be evident as at 30 June 2016.

 

 

§ Water Charges

The current favourable variance in water charges is primarily attributable to higher budgeted rate increases. At time of budget compilation, the City was advised of likely percentage increases.  Actual increases have been below what was quoted, i.e. Busselton water charges were 0.5% below what was initially advised and the Water Corporation increase was 1.8% below that budgeted.  An analysis undertaken to forecast end of year expenditure estimates that a favourable variance of up to -$50k will be evident in water charges as at financial year end.

 

In summary of the above, it is projected that the Utilities activity will reflect a favourable variance of up to -$90k as at 30 June 2016.

 


 

Depreciation on Non-current Assets (YTD variance: +$188K)

This variance, which will further increase by 30 June 2016, is primarily attributable to the 2015 infrastructure fair value valuation coupled with the significant value of donated assets also brought to account as at 30 June 2015.

 

The depreciation budget is required to be calculated reasonably early in the annual budget development process, and has historically been predicated on financial year end projections, along with other known material asset movements. Whilst generally accurate, this approach has this year been impacted by the aforementioned activities.

 

Whilst depreciation is an expense that the City needs to be fully mindful of, due to its nature, this operating expense is reversed as a non cash adjustment in the Statement of Financial Activity, and as such has no net effect on the surplus/deficit position.                       

 

Insurance Expenses (YTD variance: -$73K)

The current variance in this activity is attributable to a range of variances, primarily property insurance -$9k, plant insurance premiums -$46k, public liability insurance -$14k and other general insurance costs -$4k. As with depreciation expenses, the insurance budget is required to be developed early in the budget process, to enable other necessary budget activities to progress. Whilst the City’s insurer provides preliminary premium ratios, these are subject to subsequent amendment.      

 

Whilst additional insurances expenses are expected to be incurred prior to 30 June 2016, due to insurance schedule additions and amendments, along with excess payments, these are not expected to be material in value. Consequently, a favourable variance of approximately -$60k is projected in this activity by financial year end. 

 

Other Expenditure (YTD variance: -$196K)

The favourable variance as at 29 February 2016 includes -$100k associated with events marketing and promotions relating to MERG which have not been expended due to the amalgamation of GBTA/AMRTA and regional branding discussions. Council has resolved to transfer $150k from the differential rate marketing funds into a new Airport Reserve specifically for marketing/support of Airport development project, and this $100k, along with savings made in the remainder of the financial year, will be used for this purpose.

 

The bulk of the remaining difference is attributable to the members of Council activity area which has a favourable variance of -$88k. This represents a timing variance only and therefore will not have any net impact of the closing surplus/deficit position.

 

Not including the above activities, a range of other individual year to date variances (both favourable and adverse) is evident throughout this category. Expectations are that these will largely cancel each other out by financial year end.

 

Allocations (YTD variance: +$212K)

This activity incorporates numerous internal accounting allocations. Whilst the majority of individual allocations are administration based and cleared each month, the activity also includes plant and overhead related allocations. Due to the nature of these line items, the activity reflects as a net offset against operating expenditure, in recognition of those expenses that are of a capital nature and need to be recognised accordingly. Due to its ‘accounting transaction’ nature, performance in this activity has no net impact on the surplus/deficit position.                 

 

 

 

 

Interest Expenses (YTD variance: -$10K)

The current variance is attributable to a timing delay in the drawdown of budgeted loan facilities for Lot 40 Vasse Highway totalling $850k. The delay in drawdown of this loan will result in a favourable variance of -$10k in this category as at 30 June 2016.

 

Loss on Asset Disposals (YTD variance: +$23K)

This variance is due to book losses on the sale of sundry plant items and a range of vehicles. It should be noted that this is a book entry only, and has no direct impact on the surplus/deficit position.       

 

CAPITAL REVENUE

 

As at 29 February 2016, there is an adverse variance of approximately -$5.8m (or -67.29%) in respect of total capital revenue activities.  This variance is detailed as follows:

 

Description

Actual

YTD

$

Amended Budget YTD

$

Amended Budget

$

Variance

YTD

$

Variance YTD

%

Proceeds from Sale of Assets

 

319,780

482,400

592,200

-$162,620

-33.71%

Proceeds from New Loans

 

850,000

850,000

850,000

0

0%

Self-Supporting Loans –Repayment of Principal

 

36,690

36,690

74,508

0

0%

Transfers from Restricted Assets

 

440,442

1,500,000

53,267,805

-1,059,558

-70.64%

Transfers from Reserves

 

1,180,797

5,775,692

24,472,157

-4,594,895

-79.56%

TOTAL

2,827,709

8,644,782

79,256,670

-5,817,073

-67.29%

 

An overview of the financial performance in each activity is provided as follows:

 

Proceeds from Sale of Assets (YTD variance: -$163K)

The Proceeds from Sale of Assets category is directly aligned with the heavy and light plant component of the Plant and Equipment capital expenditure budget, insofar as it recognises the estimated sale/trade-in value of plant items budgeted to be replaced during the financial year. Consequently, the current adverse variance in this category is largely reflective of the lower than projected level of capital expenditure in the Plant and Equipment capital expenditure budget on a year to date basis. Furthermore, and due to the aforementioned alignment, any shortfall in this revenue budget will predominantly be offset by under expenditure in the associated capital expenditure budget line items.

 

As discussed in the Plant and Equipment capital expenditure category, the Plant and Equipment budget is expected to be fully expended (other than the replacement of the City’s road maintenance patching truck) by 30 June, and as such, the current variance in this category should largely reduce by financial year end.

 

Proceeds from New Loans (YTD variance: $0)

The budgeted new loan for the 2015/16 financial year has been drawn down, and no further transactions will be incurred in this category.

 

 

Self-Supporting Loans –Repayment of Principal (YTD variance: $0)

Self-supporting repayments are anticipated to be as per budget estimates.  Therefore no variance is expected in this category.   

 

Transfers from Restricted Assets (YTD variance: -$1,060K)

The Transfers from Restricted Assets category represents the equity transfer of previously quarantined monies (e.g. grants, contributions and unspent loans) to assist in funding specified works within the current financial year, along with the refund of bond and deposit payments.  Due to the nature of this category, the annual budget allocation is generally spread evenly across the financial year, with the exception of June, where a higher allocation is made to reflect specific end of financial year transactions. Consequently, budget variances will be evident throughout the year.

 

A transfer from Restricted Assets was budgeted to occur by the 29 February 2016 of $1.5m, associated with expenditure to be incurred for the Busselton Regional Airport development. To date no transfer has been made as expenditure for the project has not yet reached this value (net -$1.5m).  The remaining +$440k is attributable to bonds and deposits refunded to the end of February as all obligations have been fulfilled to authorise the return of funds. As the City does not budget for these transactions, any material variance will be reported accordingly.

 

 Transfers from Reserves (YTD variance: -$4,595K)

Similar to Transfers from Restricted Assets, this category represents equity transfers utilised to fund identified capital and operating expenditures. The annual budget reflects the total value of transfers from reserves occurring in June, to minimise budget variances arising as a result of timing differences.

 

As with the Transfers from Restricted Assets category, performance in this category will have no direct impact on the closing surplus/deficit position. Where a transfer is not made, it will be due to the associated works not having incurred any expenditure within the financial year. It should be noted however that the timing of transfers does have an impact on associated interest earnings. That is, where transfers can be deferred, this provides the capacity for additional earnings on the respective reserve accounts (albeit this does not impact on the closing surplus/deficit position).

 

As at 29 February, the 2015/16 budget includes a transfer from reserves of $4.590m associated with the building of the new Civic and Administration Centre. As this expenditure has not been realised/ invoiced, no transfer has been made and hence the significant variance. At this time however it is anticipated that the Civic and Administration building actual expenditure and subsequent income will be incurred in line with the budget.

 

CAPITAL EXPENDITURE

 

As at 29 February 2016, there is a variance of approximately -$15.4m (or -39.51%) in respect of total capital expenditure activities.  This variance is detailed as follows:

 

Description

Actual

YTD

$

Amended Budget YTD

$

Amended Budget

$

Variance

YTD

$

Variance YTD

%

Land & Buildings

 

1,929,317

12,337,880

29,548,202

-10,408,563

-84.36%

Plant & Equipment

 

1,177,576

1,998,664

2,514,500

-821,088

-41.08%

Furniture & Office Equipment

 

299,622

392,822

2,229,834

-93,200

-23.73%

Infrastructure

 

11,548,717

16,472,594

69,867,195

-4,923,877

-29.89%

Total Loan Repayments- Principal

 

886,326

886,326

1,823,986

0

0%

Transfers to Restricted Assets

 

1,864,328

1,205,656

1,808,490

+658,672

+54.63%

Transfers to Reserves

 

5,945,504

5,804,461

9,483,842

+141,043

+2.43%

TOTAL

23,651,390

39,098,403

117,276,049

-15,447,013

-39.51%

 

An overview of the financial performance in each activity is provided as follows:

 

Land & Buildings (YTD variance: -$10.4M)

The Land and Buildings capital expenditure budget of approximately $10.4m comprises a number of major projects areas, including:

§ Land purchases for Airport Development -$0.9m;

§ Foreshore east youth precinct Community Youth Building (incorporating BSLSC) - $1.9m;

§ Railway House -$1.2m;

§ Multi-purpose community sporting clubhouse -$0.5m;

§ Civic and administration centre (inclusive of relocation costs) -$5.4m;

§ Remainder of Buildings Program - $0.5m.

 

§ Busselton Airport Development - $0.9M

Land acquisition negotiations are currently being finalised.  It is anticipated that deposits for three portions of land will be paid this financial year with the balance in 2016/17. As this project is fully grant funded, it will have no effect on the year end net current position.

 

§ Foreshore east youth precinct Community Youth Building (incorporating BSLSC) - $1.9M

Due to changes in policy and timing with the Lottery West funding system, the outcome of the grant application submitted to Lottery West has only just been announced.  The City has been successful in its application, with Lottery West granting the full estimated costs to construct the building of $2.881m. This project is due to Commence construction in October 2016.

 

§ Railway House -$1.2M

A design and construction tender has been awarded.  Construction commenced in February 2016 with the projected completion date during the 2016/17 financial year.

 

§ Multi-purpose community sporting clubhouse -$0.5M

City staff are currently working with relevant stakeholders and user groups of the Barnard Park Ovals to develop a suitable concept which meets their requirements. Construction should commence in May 2016 with the project being carried forward and completed in the 2016/17 financial year.

 

 

§ Civic and administration centre (inclusive of relocation costs) -$5.4M

This variance is due to a timing difference in that construction commenced later than reflected in the 2015/16 budget.  However given the tight schedule for construction and the anticipated practical completion date of February 2017, it is still anticipated that all of the funds budgeted will be spent.

 

Based on the above, it is projected that the Land and Buildings capital expenditure category will fall short of annual budget estimates. However, as the projects are fully funded from grants, contributions and/or reserve transfers, the under expenditure will not have any net impact on the closing surplus/deficit position.

Plant & Equipment (YTD variance: -$821K)

The Plant and Equipment capital expenditure budget of approximately $2.5m comprises $2.4m in heavy and light plant replacements and acquisitions, with the balance of the budget for sundry plant and equipment procurements.

 

At 29 February 2016, the majority of the current variance is primarily attributable to timing in the delivery of the heavy plant replacement program -$0.6m; including the following:

§ A new small rear load waste truck $200k;

§ Parks and Gardens heavy plant $60k;

§ Construction heavy plant $380k.

 

It is anticipated that all budgeted items of Plant and Equipment will be replaced by 30 June 2016 other than the replacement of the City’s road maintenance patching truck. This specialised vehicle has a long lead-time between ordering & delivery and to this end, will represent a carry over.  As this vehicle is funded from the plant replacement reserve, this transaction will have no impact on the net financial year end position.

 

Furniture & Office Equipment (YTD variance: -$93K)

The current variance in this category is primarily due to information technology expenditure -$65k, cultural planning -$24k, and other minor variances which net to -$4k.

 

With regards to the information technology expenditure, the variance is currently attributable to timing differences in relation to specific projects.  It is anticipated that the full capital program in this area will be achieved by the end of the financial year.

 

With regards to the cultural planning expenditure (settlement art project), the variance is currently attributable to timing differences with a purchase order for $25k currently outstanding for this line item. It is expected that the full budget allocation will be utilised by the end of the financial year.

 

For the purpose of this review, performance in the Furniture and Office Equipment category is not projected to have any net impact on the closing surplus/deficit position.  

 

Infrastructure (YTD variance: -$4.924M)

For the purposes of this review, the Infrastructure capital expenditure category is broken down into three specific areas. The year to date performance in each area is summarised as follows:

 

Description

Actual

YTD

$

Amended Budget YTD

$

Amended Budget

$

Variance

YTD

$

Variance YTD

%

Busselton Foreshore

 

4,437,524

5,001,363

7,040,318

-563,839

-11.27%

Busselton Regional Airport

 

451,202

1,200,085

41,645,094

-748,883

-62.40%

Infrastructure - Other

6,659,991

10,271,146

21,181,783

-3,611,155

-35.16%

TOTAL

11,548,717

16,472,594

69,867,195

-4,923,877

-29.89%

 


 

Comments relating to the performance in each of the above areas are provided as follows:

 

§ Busselton Foreshore

Following the continued success of the Busselton Youth Precinct, the construction projects being undertaken for the Busselton Foreshore are in the main, progressing according to budget and schedule. An exception is noted for the Busselton Foreshore provision of services and auxiliary works which is pending due to Royalties for Regions grant notification.

 

§ Busselton Regional Airport 

It is noted the progress of the Airport Development Project is on schedule.  However, there is a material variance with the timing of the project costs, with funding scheduled to be spent over the three years commencing from the 2015/16 financial year.  Key progress and payments to be made in 2015/16 include administration (operations of Project Management Office), preliminary assessments and designs, and land acquisition.  It is estimated that approximately $54.6m will be carried over into the 2016/17 financial year.  The project is self-funded and will not adversely affect the net position.

 

§ Infrastructure - Other

This component of the Infrastructure capital expenditure budget is largely managed by the Engineering and Works Services Directorate and covers a range of different activities. With an annual budget of approximately $21m and a year to date budget of approximately $10m, there is a current year to date variance of -$3.6m.  There were a further $3m in committed costs raised against projects as at the end of February representing orders made to suppliers and anticipated to be receipted and paid in the short to medium term.

 

The year to date variance is explained by the following major variances;

 

§ -$1.4m, representing 40% of the unexpended year to date budget variance, is attributable to Sanitation (waste) Infrastructure:

 

·    Phase one of the New Cell Development, currently under construction, was -$811k under budget, noting that this project is due for completion by the end of May 2016.

·    The Busselton Transfer Station Development was under budget by -$600k due to the delays in project commencement. The tendered price for this development is far in excess of budget and hence a budget amendment report is required to be submitted to the Council. This project will likely represent a carry over.

 

It is noted that any variances in these projects will not impact on the net end of year position as variances with be transferred to/from the Waste Reserve.

 

§ -$1.080m, representing 30% of the year to date variance is attributable to the Vasse Community & Recreation Precinct - AFL Oval Stage 1 project. This is a timing difference with works now underway and due to be completed by June 2016.

 

§ Capital Bridge projects make up a further -$487k or 14% of the variance.  This is almost exclusively attributed to the Metricup Road bridge works that have been postponed and will represent a carry over to the 2016/17 financial year. Note there is no financial impact to the end of financial year net position as this project is funded from State and Federal grants.  

 

§ As at 29 February 2016 road capital projects are -$357k under expended and make up a further 10% of the year to date budget variance. The Puzey Road reconstruction project, representing -$223k of the variance was delayed due to vegetation clearing matters and environmental approvals. The project is however scheduled for completion by June 30 2016.

 


 

In summary, it is estimated that only a small number of projects may be required to be carried over to the 2016/17 financial year. Whilst this may impact on the final closing surplus/deficit position for 2016/17, this will be offset by the need to re-list these projects in the ensuing draft budget. Additionally, other projects that may be deferred (and particularly in respect of sanitation related expenditure) are reserve funded and as such, will have no net impact on the closing surplus/deficit position.

 

Total Loan Repayments- Principal (YTD variance: $0K)

The principal loan repayments are anticipated to be as per budget estimates.  Therefore no variance is expected in this category

 

Transfers to Restricted Assets (YTD variance: +$658K)

The Transfers to Restricted Assets budget comprises an estimation of funds that could potentially be received during the financial year, primarily from developer contributions. Included are cash in lieu of parking, community and recreation facilities contributions and contributions to works. Due to the nature of the category, the annual budget allocation is spread evenly throughout the financial year. The performance in this activity does not have any direct impact on the surplus/deficit position, as whilst recognised as operating revenue upon receipt (via Non-operating Grants, Subsidies and Contributions), these funds are subsequently quarantined to Restricted Assets, essentially offsetting the initial transaction.

 

In addition to the above, the Transfers to Restricted Assets category also includes the payment of bonds and deposits, albeit no specific budget allocation is made for these funds.  

 

The favourable financial year to date variance of approximately +$658k is primarily attributable to the receipt of developer contribution payments totalling +$260k, and bond and deposit payments totalling approximately +$400k.

 

Whilst performance in this category does not directly impact on the closing surplus/deficit position, interest earnings on a range of restricted asset funds do contribute to the City’s municipal interest earnings.     

 

Transfers to Reserves (YTD variance: +$141K)

The Transfers to Reserves budget includes both a base transfer and a projected interest component, which collectively equate to the respective annual budget allocations. Whilst the base transfers are made in terms of the adopted budget, the overall financial performance in any year is impacted by the associated interest earnings performance. 

 

The current favourable variance is attributable to interest earnings on Reserve funds. The reserves balance currently includes the full $18m loan funds for the Administration building redevelopment which is yet to be utilised to offset any expenditure. Due to the higher than anticipated balance at this point in time, interest earned has exceeded current budget projections. It should be noted of the +$141k in additional interest, +$112k is attributable to the Civic and Administration Centre Construction Reserve.

 

Current projections are that reserve interest earnings will exceed annual budget estimates by approximately +$200k as at 30 June 2016, which will be reflected in the end of financial year Transfers to Reserves performance. Whilst this will not directly impact on the closing surplus/deficit position, the additional revenue will supplement the projected balance of the City’s reserve funds at financial year end.    

 


 

CONCLUSION

 

As detailed within this report, it is considered that the City’s overall financial performance to 29 February 2016 is satisfactory.  Current projections indicate a potential surplus closing position as at 30 June 2016, in the order of approximately +$360k (exclusive of carry forwards).  The Annual Budget Review has not identified any specific adverse financial trends, for which remedial action is required to be instigated prior to financial year end. The projected surplus closing position is primarily due to operating expenditure savings.  

 

As this report also identifies, it is projected that overall capital expenditure will fall well short of annual budget estimates, with this primarily attributable to the Airport Development project. However, as individual projects are essentially fully funded in one form or another, a corresponding short fall in capital revenue will also be evident as at 30 June 2016.      

 

Whilst components of the unspent capital and operating expenditure budgets may need to be considered for re-listing in the Council’s 2016/17 draft budget, the current projected surplus closing position of $360k represents net underspends directly associated with the current financial year’s financial performance.

 

It is noted that the  potential surplus closing position at financial year end, including consideration of utilisation, or quarantining of these funds, be will be fully considered as part of the Council’s 2016/17 draft budget deliberations.   

 

OPTIONS

 

The Finance Committee/ Council may determine that additional recommendations are required to be made, or alternatively that the Annual Budget Review not be adopted by the Council at this time, pending clarification of any further matters.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

 

Consequent to endorsement by the Council, with or without amendment, a copy of this report (and the associated Council Resolution) will be forwarded to the Department of Local Government and Communities within 30 days of the date of the Council Resolution. 

 

OFFICER RECOMMENDATION

ABSOLUTE MAJORITY DECISION OF COUNCIL REQUIRED

 

That, pursuant to Regulation 33A of the Local Government (Financial Management) Regulations, the Council adopts the 2015/16 Annual Budget Review.

 

Note:

The Committee felt that it was important to reaffirm the Council decision that any surplus at the end of the 2015/16 Financial year be transferred to the Infrastructure Development Reserve.


 

 

 

COMMITTEE RECOMMENDATION

 

ABSOLUTE MAJORITY DECISION OF COUNCIL REQUIRED

 

1.            That, pursuant to Regulation 33A of the Local Government (Financial Management)         Regulations, the Council adopts the 2015/16 Annual Budget Review.

 

2.            That the Council reaffirms its resolution C1303/074 that any surplus at the end of the      2015/16 Financial year be transferred to the Infrastructure Development Reserve.

 

 


Council                                                                                      65                                                                      27 April 2016

10.4           Finance Committee - 14/04/2016 - DRAFT SCHEDULE OF FEES AND CHARGES FOR THE 2016/17 FINANCIAL YEAR

SUBJECT INDEX:

Finance and IT Services

STRATEGIC OBJECTIVE:

An organisation that is managed effectively and achieves positive outcomes for the community.

BUSINESS UNIT:

Finance and IT Services

ACTIVITY UNIT:

Financial Operations

REPORTING OFFICER:

Financial Compliance Officer - Jeffrey Corker

AUTHORISING OFFICER:

Director, Finance and Corporate Services - Matthew Smith

VOTING REQUIREMENT:

Absolute Majority

ATTACHMENTS:

Nil

 

This item was considered by the Finance Committee at its meeting on 14 April 2016, the recommendations from which have been included in this report. 

PRÉCIS

 

In accordance with Regulation 5(2) of the Local Government (Financial Management) Regulations, a local government is to undertake a review of its fees and charges regularly; and not less than once in every financial year. This report provides the Finance Committee with a recommended Schedule of Fees and Charges to apply for the financial year commencing on 01 July 2016, for its consideration and consequent recommendation to the Council.

 

 

BACKGROUND

 

Section 6.16 of the Local Government Act (the “Act”) states that a local government may impose and recover a fee or charge for any goods or services it provides or proposes to provide, other than a service for which a service charge is imposed.

 

Section 6.17 of the Act further states that in determining the amount of a fee or charge for goods and services, a local government is to take in to consideration the following factors:

a)            The cost to the local government of providing the service or goods;

b)            The importance of the service or goods to the community; and

c)            The price at which the service or goods could be provided by an alternative provider.

 

Section 6.18 of the Act clarifies that if the amount of any fee or charge is determined under another written law, then a local government may not charge a fee that is inconsistent with that law.

 

The above matters have been considered as part of the annual fees and charges review and the fees and charges recommended are in accordance with recent planning and discussions relating to the City’s Long Term Financial Plan.

 

Finally, whilst Section 6.16(3) of the Act states that a schedule of fees and charges is to be adopted by the Council when adopting the annual budget, fees and charges may also be imposed during a financial year. In order for the 2016/17 schedule of fees and charges to be effective from the commencement of the new financial year, the Council is required to adopt its schedule in advance of 30 June 2016, such that any statutory public notice periods (including gazettal’s where required) can be complied with.

 

STATUTORY ENVIRONMENT

 

Sections 6.16 – 6.19 of the Act refer to the imposition, setting the level of, and associated administrative matters pertaining to fees and charges. The requirement to review fees and charges on an annual basis is detailed within Regulation 5 of the Local Government (Financial Management) Regulations.

 

RELEVANT PLANS AND POLICIES

 

The Council’s endorsed Long Term Financial Plan reflects an annual increase in Fees and Charges revenue of 3.5% (the 10 year average Local Government Cost Index). This matter has been considered as part of the review process.

 

FINANCIAL IMPLICATIONS

 

Whilst fees and charges revenue includes items that the Council has no authority to amend, it is important that, where possible, controllable fees and charges are appropriately indexed on an annual basis, to assist in offsetting the increasing costs of providing associated services.    This may include increases beyond normal indexation in particular cases in line with Section 6.17 of the Act.

 

Long-term Financial Plan Implications

 

In terms of the Council’s currently adopted budget, revenue from fees and charges (excluding waste collection charges) equates to approximately 23% of budgeted rates revenue and 15% of total operating revenue (excluding non-operating grants). As such, fees and charges form an integral and important component of the City’s overall revenue base in relation to the Long Term Financial Plan.

 

STRATEGIC COMMUNITY OBJECTIVES

 

The schedule of fees and charges adopted by the Council encompasses 'whole of organisation' activities. As such, all Key Goal Areas within the Council’s Strategic Community Plan 2013 are in some way impacted. More specifically however, this matter aligns with Key Goal Area 6 – ‘Open and Collaborative Leadership’ and particularly Community Objective 6.3 - ‘An organisation that is managed effectively and achieves positive outcomes for the community’.

 

RISK ASSESSMENT

 

There are several risks that the Council needs to be mindful of when reviewing its schedule of fees and charges. Firstly, in an effort to assist in recovering costs associated with the provision of services, it is important that, where applicable, fees and charges are increased on an annual basis in line with relevant economic indicators. Should this not occur the provision of services is required to be increasingly subsidised by other funding sources. Conversely however, a balance is also required to ensure that fees and charges are maintained at levels so as not to adversely impact on the financial ability for ratepayers to utilise those services, which may otherwise result in a net reduction in revenue.              

 

CONSULTATION

 

Business Unit Managers are responsible for reviewing fees and charges associated with activities under their control. As part of the review process, consultation may occur with other local government authorities, in addition to a review of prices offered by alternate service providers (pursuant to Section 6.17 of the Act).       

 

OFFICER COMMENT

 

The 2016/17 draft Schedule of Fees and Charges has been guided by a general escalation of 3.5% over currently adopted fees and charges, which represents the average of the Local Government Cost Index (LGCI) over the past 10 years. This methodology is consistent with the Fees and Charges revenue extrapolation as comprised within the Council’s currently endorsed Long Term Financial Plan. Notwithstanding this however, in numerous instances this principle is not appropriate, with other factors also requiring consideration. The following provides an overview, by Directorate, of noteworthy instances where an LGCI extrapolation has not been utilised, whilst also discussing, where relevant, newly proposed fees and charges.              

 

Executive Services

 

No new fees or significant changes

 

Planning and Development Services

 

Environmental Health

·    Temporary Food Business Assessment Fee (per occasion)

The description of this fee has been changed  from ‘application for temporary food stall’  to ‘Temporary Food Business Assessment Fee (per occasion)’ to  better reflect the purpose of this fee, being the recovery of administration costs associated with the assessment of temporary food businesses that are registered with another local government and apply to operate within the City of Busselton.

 

·    Temporary Food Business Assessment Fee (Annual)

A new ‘Temporary Food Business Assessment Fee (Annual)’ is proposed to enable the recovery of costs associated with the assessment of temporary food business that are registered with another local government and apply to operate within the City of Busselton for an extended period of up to one (1) year.

 

·    Stallholders (Food Stall)

Subject to Council endorsing the proposed changes to Temporary Food Business Assessment fee and a proposed new annual fee, it is recommended that the ‘Stallholders (Food Stall)’ fee be deleted as these fees will become superfluous.

 

Meelup Regional Park

·    Event Bonds

In June 2015, Council resolved (resolution C1506/172) that any permits issued for the event (Gourmet Escape) held within Meelup Regional Park include the imposition of a bond in accordance with the City’s Schedule of Fees and Charges. The proposed event bond hierarchy is recommended for inclusion in the Schedule of Fees and Charges for the implementation of Council’s decision.

 

Engineering and Works Services

 

No new fees or significant changes

 

Finance and Corporate Services

 

·    Busselton Community Resource Centre

In order to encourage community use of the CRC meeting rooms no increase has been applied to the community based rates.  Feedback from community groups, and in particular the tenants of the CRC, has indicated that the community rates are currently at the upper end of what such groups can afford.  Hence it is felt that increasing them any further, particularly given the current economic environment, will discourage use.  Commercial rates have however been increased by 3.5%.

 


 

Community and Commercial Services

 

Events & Casual Ground Hire

·    Street Banners – Install and remove (per pole)

This fee has been introduced to replace an existing fee previously based on the hire of 16 street poles. There are now a number of different options for hire including the Queen Street (12 poles), side streets (5 pole) and Busselton Foreshore (7 poles). The fee is to be waived for not for profit community groups (C1002/061).

 

·    Ground Hire Bonds (to be applied to Community Events);

This fee has been introduced to replace an existing fee ‘Ground hire Bonds (to be applied to Events and Commercial Usage)’ which was based on number of days usage. The new fee for a bond is based on the grounds that the event will be held on such as sporting grounds, foreshore and other reserves. This fee has also been amended to apply to Community events only (compared to previously commercial events) as there are existing commercial event bonds already in place.  

 

Busselton Jetty

·    Busselton Jetty Entry Passes

Jetty Entry passes fees have been added to the schedule as The City of Busselton is responsible for the setting of the Busselton Jetty entrance fee in accordance with the Busselton Jetties Local Law (2014).  The Collection of Entrance fees is a licensed activity of the Busselton Jetty Environment and Conservation Association Inc. (BJECA) in accordance with the Busselton Jetty License between the City of Busselton and BJECA.              

 

·    Commercial Use of Marine Berthing Platforms - Whale Watching / Tour Vessels

New Monthly and Annual fees and Bonds have been proposed for Whale watching / tour vessels utilising the marine berthing platforms. A separate Council agenda item further discusses these fees.  The fees have been included in the draft schedule so as to facilitate the advertising requirements enabling a 1 July effective date, however they are reliant upon the separate report.

 

Naturaliste Community Centre (NCC)

·    Various Wording changes as requested so that description better matches fee

 

·    Basketball, netball & volleyball courts charged per court

Deleted as not relevant to NCC Facility

 

·    Volleyball Courts 5 & 6 (i.e. smaller courts)

Deleted as not relevant to NCC Facility

 

·    Casual Basketball (Individual fee*) school student rate per hour conditions apply

New fee introduced as there is a demonstrated need in community for a student rate for after school hours and on school holidays.

 

·    6 months membership

6 month membership has increased by 11.5% as this membership is reciprocal at GLC and to avoid any disadvantage between Centre’s and to align fees. Note: very low volume of sales at both Centre’s.

 

·    3 months membership

3 month membership has increased by 39% as this membership is reciprocal at GLC and to avoid any disadvantage between Centre’s and to align fees. Note: very low volume of sales at both Centre’s.

 

·    6 and 3 months membership (concession)

New categories have been added to align with GLC pricing and to avoid any disadvantage between Centre’s.

 

·    Seniors Programs

Fee not increased in order to align with seniors program entry at GLC. Hence 10 pass fee also not increased.

 

·    Pay as you go fortnightly direct debit (including concession option)

New fees to align NCC with the GLC.

 

·    Pay as you go cancellation fee

New fee added as this covers administration costs if cancelling after a short period from joining.

 

·    Double Membership per person

New fee added to align with GLC pricing and to avoid any disadvantage between centres.

 

·    City of Busselton staff Group Fitness membership. A 10% discount applies on renewal.

New fee added to align with GLC pricing and to avoid any disadvantage between centres

 

·    Vacation care program, per child per day

New fee added as a new program has been implemented. Fee aligns with GLC.

 

·    Stage Hire (Including Bond)

New fee added as Stage hire requires administration and staff resources to administer and contribution to asset replacement cost.

 

·    Grounds Hire

The NCC has a maintained paved and grassed outdoor area with access to all services, intended for community use in the initial design of the facility. Implementing this fee will recover some fixed maintenance costs and also variable costs associated with hirer’s use of services.

 

Geographe Leisure Centre (GLC)

·    Local Swimming clubs and local user groups

This was a negotiated fee mid-year with swim clubs and expectation is that it is negotiated each year and has been increased from $1 to $2 this year.

 

·    Lifestyle seniors program

This program is a concession fitness class for seniors.

 

·    Small group Personal Training

New fee added as the GLC is now making the PT space in the gym available and this fee is to cover participants cost of group training.

 

·    Casual Basketball

New fee added as there is a community demonstrated need for accessible service for school age participants at a cheaper price.

 

·    Whole of Stadium Hire and Bond

New fee added so as to be able to charge a whole of stadium fee for events.

 

·    Gym - Pay as you go cancellation fee

New fee covers administration costs if cancelling after a short period from joining.

 

Kookaburra Caravan Park

·    Park Home 6 (site 3) - up to a maximum of 6 people;

A new fee has been entered for the installation of the new cabin completed in FY 2015/16. This includes fees for overnight rates for off-season and peak season, and weekly rates for peak season (up to 27 Days).

 

·    A CPI increase of 3.5% has not been applied to the following KCP fees, with the primary reason being that these fees are essentially within market range compared to other caravan parks. While the KCP offers good quality, affordable accommodation, it does not provide many of the facilities that some other Parks provide such as swimming pools, playgrounds and theatre rooms and as such ensuring that affordable accommodation is a critical factor that can then differentiate the KCP which then continues to remain attractive to visitors.  

Extra Adults per night for powered sites and cabins during peak, off-peak and weekly rates. 

Extra Child per night for powered sites and cabins during peak, off-peak and weekly rates. 

Booking Cancellation Fee

Washing Machines/ Dryers

Refill of 9kg gas bottle

Shower charge

Linen hire per site

 

ArtGeo Cultural Complex

·    Storage Fee

A new weekly storage fee will allow temporary use of available spaces to store equipment and works for example when lease arrangements are transitioning.

 

Busselton Regional Airport

·    The following fees have not been increased by CPI;

Passenger charge (head tax) for RPT flights (arriving & departing passengers)

Passenger Facilitation Fee for Open & Closed Charter Flights (using Ground & BHS services) - Departing Passengers only

These two fees have not been increased due to the economic climate within the mining /resource industry at the current time.

 

·    Per motor vehicle / motor bike per day

The City has increased car parking charges at the Airport for the last two financial years. One of the observed impacts of these fee increases was for FIFO passengers to car pool and also for increased drop offs/pick-ups. Officers feel that a further fee increase in 2016/17 would result in additional loss of car parking revenue due to passengers finding alternative means of transport to the Airport and home. 

 

·    CEO Non-conforming Activity per hour fee

This per hour fee has been introduced to recover the costs associated with any approved CEO non-conforming activities. These activities are non-scheduled flights that occur outside of normal Airport operating hours and hence require the City to provide staff (ARO’s) at overtime rates. The fee has been based on an average per hour overtime rate (outdoor staff level 5/6) and incurs a minimum charge of 1.5 hours allowing for an arrival and departure.

 

Library Charges

·    Public Internet – Guest Pass

A new fee has been proposed in the amount of a $2.00 charge for all non-library members to use the public internet computers which is hoped will encourage travelers and tourists to use their own devices instead of the public PCs which are in high demand for study and other essential services by local residents.

 

CONCLUSION

 

As part of the annual fees and charges review, the currently adopted fees and charges have been reviewed in line with the requirements of the Local Government Act and other relevant legislation as applicable. Where considered relevant, fees and charges have been increased by, or above, LGCI estimates in recognition of increased costs associated with the provision of services. In other instances, the prevailing fees and charges are considered adequate (and as such, no changes are recommended). Furthermore, a number of new fees and charges have been proposed, or amendments to existing fees structures recommended. Consequently, it is recommended that the Finance Committee endorses the draft Schedule of Fees and Charges for 2016/17 as recommended, for subsequent consideration by the Council.

 

OPTIONS

 

The Finance Committee may determine to recommend amendments to the draft Schedule of Fees and Charges as it deems appropriate. 

  

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

 

Consequent to adoption by the Council, the Schedule of Fees and Charges for 2016/17 will become effective from and including 01 July 2016. 

 

Note:

In accordance with Item 10.6 of this agenda, the bond amounts associated with new marine berthing platforms on the Busselton Jetty have been updated in the below schedule.

 

 

COMMITTEE RECOMMENDATION AND OFFICER RECOMMENDATION

 

ABSOLUTE MAJORITY DECISION OF COUNCIL REQUIRED

 

That the Council:

 

1.    Endorses the Fees and Charges as detailed in the “Draft Fee 2016/17 (exc. GST)” column of the following Schedule of Fees and Charges, effective from and including 01 July 2016:

 

 

DESCRIPTION

ADOPTED FEE 2015/16                    (Exc GST)

DRAFT FEE 2016/17                    (Exc GST)

DRAFT FEE 2016/17                    (Inc GST)

 

 

 

 

A concession of 50% of the adopted fee or charge may apply (upon application) in relation to those fees and charges shaded and marked with an asterisk (*). The concession is only available to incorporated not for profit organisations and groups where profits raised from the associated activity are to be donated to a local cause or charity.       

 

 

 

 

EXECUTIVE SERVICES

 

 

 

 

 

 

 

SALE OF DOCUMENTS

 

 

 

Council Minutes

 

 

 

Subscription on a per annum basis

470.00

470.00

470.00

Single Copy - Agenda

30.00

30.00

30.00

Single Copy - Minutes

20.00

20.00

20.00

 

 

 

 

Electoral Rolls

 

 

 

Per copy

62.50

65.00

65.00

 

 

 

 

Publications

 

 

 

Cape of Contrasts Book

20.00

20.00

22.00

 

 

 

 

CITY OF BUSSELTON LICENCE PLATES

 

 

 

(Not applicable to plates sold at Auction )

 

 

 

City of Busselton plates (aluminium)

509.09

509.09

560.00

Dunsborough plates (polycarbonate)

509.09

509.09

560.00

Yallingup plates (polycarbonate)

509.09

509.09

560.00

 

 

 

 

Major Projects

 

 

 

Consultancy charge out rates subject to Contract negotiation where applicable

 

 

 

Project Manager Advisor

150.00

154.55

170.00

Chief Executive Officer

220.00

227.27

250.00

Cultural Planner

75.00

77.27

85.00

Strategic Planner

75.00

77.27

85.00

Finance Officer

65.00

67.27

74.00

Administration Officer

65.00

67.27

74.00

 

 

 

 

Charge-out rates: City staff undertaking consultancy/ contract work for other local government authorities    

 

 

 

- Manager Level

154.55

159.09

175.00

- Co-ordinator Level

118.18

122.73

135.00

- Technical Officer Level

104.55

109.09

120.00

 

 

 

 

 

 

 

 

 

 

 

 

PLANNING & DEVELOPMENT SERVICES

 

 

 

 

 

 

 

BUILDING RELATED FEES

 

 

 

 

 

 

 

Fees for building services listed in Schedule 2, Building Regulations 2012

As per the maximum fee listed in Schedule 2, Building Regulations 2012

As per the maximum fee listed in Schedule 2, Building Regulations 2012

As per the maximum fee listed in Schedule 2, Building Regulations 2012

 

 

 

 

R-Codes Assessment

 

 

 

Rcodes variation applications

Planning application fee as per Schedule 2

Planning application fee as per Schedule 2

Planning application fee as per Schedule 2

Planning application consultation (R Code variations)

114.00

118.00

118.00

 

 

 

 

Demolition Licence

 

 

 

Performance Bond - site clean-up and verge bond

392.00

420.00

420.00

 

 

 

 

Building Plan Searches and Research Fee

 

 

 

Building under construction

72.00

75.00

75.00

Old Archive (Stored at Depot) - under 15 years

108.00

112.00

112.00

Old Archive (Stored at Depot) - over 15 years

142.00

147.00

147.00

Provide copy of Housing Indemnity Insurance Policy

72.00

75.00

75.00

Site Plans

56.00

58.00

58.00

The above fees include the cost of copying up to ten A4 or A3 sheets or equivalent. Any further copies which be charged in accord with the adopted photocopy charges as detailed in this Schedule.

 

 

 

 

 

 

 

Provision of Hard Copy of Approved Plans

 

 

 

A4 Photocopy

13.00

14.00

14.00

A3 Photocopy

16.00

17.00

17.00

Computer Plotting (full colour) per sheet

 

 

 

A4 Sheet

27.00

30.00

30.00

A3 Sheet

32.00

35.00

35.00

A2 Sheet

42.00

45.00

45.00

A1 Sheet

65.00

68.00

68.00

 

 

 

 

Building Inspection and Reports

 

 

 

Building inspection and report preparation (relocated dwelling or similar)

457.27

472.73

520.00

Strata inspection fee - First inspection free.  Fee applies to subsequent inspections.

142.73

147.27

162.00

Property Inspection and Report Preparation

427.27

441.82

486.00

Building Call Out Fee.  Fee applies where work for which an inspection is requested, was not ready for inspection.

142.73

147.27

162.00

Weekend Call Out Fee - per hour (calculated as a minimum of one hour)

118.18

122.73

135.00

Pool inspection fee on sale of property (if more than 1 year from scheduled inspection)

142.73

147.27

162.00

Building and Pool re-inspection fee for noncompliance.

142.73

147.27

162.00

 

 

 

 

Subscription for Building Lists

 

 

 

Annual (supplied monthly) - per annum fee

262.00

272.00

272.00

One Monthly Subscription only - per month fee

44.00

46.00

46.00

 

 

 

 

Building certificates and written advice (Building Act 2011)

 

 

 

Certificate of design compliance for class 2-9 buildings construction value up to $2M

0.09% of the GST inclusive estimated value of works, with a minimum of $262; plus GST.

0.09% of the GST inclusive estimated value of works, with a minimum of $262; plus GST.

0.09% of the GST inclusive estimated value of works, with a minimum of $262; plus GST.

Certificate of design compliance for class 2-9 buildings construction value more than $2M

 $1,800, plus 0.07% of the GST inclusive estimated value of works for every $ over $2M; plus GST.

 $1,800, plus 0.07% of the GST inclusive estimated value of works for every $ over $2M; plus GST.

 $1,800, plus 0.07% of the GST inclusive estimated value of works for every $ over $2M; plus GST.

Certificate of Construction/ Building Compliance

Hourly fee of $125, minimum of $262 plus GST

Hourly fee of $125, minimum of $262 plus GST

Hourly fee of $125, minimum of $262 plus GST

Provision of written advice confirming compliance with town planning and/or environmental health matters, and/or advising of town planning and environmental health requirements, prior to submissions of an application for issue of a building permit

66.36

68.18

75.00

 

 

 

 

HEALTH RELATED FEES

 

 

 

 

 

 

 

Food Premises Fees

 

 

 

Application for Registration/ Notification of Food Premises

60.00

62.00

62.00

Review of Registration/Notification of Food Premises

58.00

60.00

60.00

Transfer of Registration Fee

60.00

62.00

62.00

Inspection fee - Low Risk

89.00

92.00

92.00

Inspection fee - Medium Risk

190.00

196.50

196.50

Inspection fee - High Risk

190.00

196.50

196.50

Inspection fee - School Canteens

Exempt

0.00

0.00

Plans Assessment fee - small - residential

75.00

78.00

78.00

Plans Assessment fee

150.00

155.00

155.00

Plans Assessment fee - supermarkets or premises > 2 separate food outlets

229.00

240.00

240.00

Inspection of premises on request

167.00

173.00

173.00

Request for copy of condemnation certificate

78.00

80.00

80.00

Copy of Food Sampling Results Certificate

26.00

27.00

27.00

Temporary Food Business assessment fee (per occasion)

33.00

40.00

40.00

Temporary Food Business  assessment fee (annual)

New

180.00

180.00

 

 

 

 

Stallholders

 

 

 

Application for Stallholders Permit Fee/Renewal of Stallholder's Permit Fee/ Transfer of Stallholders Permit

 

 

 

per occasion

30.00

31.00

31.00

Up to 3 months

40.00

41.50

41.50

6 months

60.00

62.00

62.00

12 months

120.00

125.00

125.00

Application for Transfer of Stallholder's Permit

30.00

31.00

31.00

 

 

 

 

Traders

 

 

 

Application for Trader's Permit

60.00

62.00

62.00

Traders Permit Fee/Renewal of Trader's Permit Fee

 

 

 

per occasion

50.00

52.00

52.00

Up to 1 month

100.00

105.00

105.00

1 - 3 months

200.00

210.00

210.00

6 months

400.00

415.00

415.00

12 months

800.00

830.00

830.00

 

 

 

 

Commercial Trader's Permit (Trading at a designated 'Commercial Trader's Location' defined under 'Trading in Public Places Policy')

 

 

 

per site/year

1,500.00

1,550.00

1,550.00

Application for Transfer of Commercial Trader's Permit

200.00

210.00

210.00

 

 

 

 

Outdoor Eating Facility

 

 

 

Application for Outdoor Eating Facility Permit

100.00

105.00

105.00

Outdoor Eating Facility Permit Fee/Renewal of Outdoor Eating Facility Permit Fee

 

 

 

Minimum Outdoor Eating Facility Fee/ year - <10m2

50.00

52.00

52.00

Outdoor Eating Facility Fee/ year/ non liquor-licenced area - < 30m2

100.00

105.00

105.00

Outdoor Eating Facility Fee/ year/ non liquor-licenced area - > 30m2

250.00

260.00

260.00

Outdoor Eating Facility Fee/ year/ Liquor-licenced area - < 30m2

300.00

310.00

310.00

Outdoor Eating Facility Fee/ year/ Liquor-licenced area - > 30m2

500.00

518.00

518.00

Application for Transfer of Outdoor Eating Facility Permit

100.00

105.00

105.00

 

 

 

 

Street Entertainers

 

 

 

Application for Street Entertainer Permit Fee/Renewal of Street Entertainer Permit Fee

0.00

0.00

0.00

 

 

 

 

Public Building Fees

 

 

 

The maximum "Statutory" fee for consideration of an application for approval is $832 (inc GST)

 

 

 

< 500 persons

150.00

155.00

155.00

500 - 999 persons

204.00

210.00

210.00

1,000 - 2,999 persons

406.00

420.00

420.00

3,000 - 4,999 persons

677.00

700.00

700.00

> 5,000 persons

792.00

820.00

820.00

Public Building Inspection Fee (including events)

101.00

105.00

105.00

 

 

 

 

Water Sampling Fee

 

 

 

Chemical Swimming Pool sample

13.00

14.00

14.00

Micro/ Amoeba Swimming Pool Sample

33.00

34.00

34.00

Private Water Supply Sampling Fee

70.00

72.00

72.00

 

 

 

 

Park Home, Annexe & Miscellaneous Caravan Park Fees

 

 

 

Application for Approval of Park Home

225.00

233.00

233.00

Application for Approval of Annexe

225.00

233.00

233.00

Application for approval of other Buildings, Carports, Pergolas and Storage Sheds

225.00

233.00

233.00

 

 

 

 

Animal Registration Fees

 

 

 

Application for Registration of Stable

82.00

84.00

84.00

Application to Renew Registration of Stable

48.00

50.00

50.00

Application to Transfer Registration of Stable

24.00

25.00

25.00

Application for Registration of premises to keep pigeons

82.00

84.00

84.00

Application for renewal of Registration to Keep Pigeons

48.00

50.00

50.00

 

 

 

 

Lodging House Registration Fees

 

 

 

Application for Registration of Lodging House - less than 15 lodgers

342.00

354.00

354.00

Renewal of Registration of Lodging House - less than 15 lodgers

228.00

236.00

236.00

Application for Registration of Lodging House - 15 or more lodgers

489.00

506.00

506.00

Renewal of Registration of Lodging House - 15 or more lodgers

326.00

338.00

338.00

 

 

 

 

Temporary Accommodation Approval Fees

 

 

 

Application for Approval to camp (Regulation 11 Caravan Parks & Camping Grounds Regulations 1997)

227.00

235.00

235.00

 

 

 

 

Holiday Homes

 

 

 

Registration of Holiday Homes

342.00

354.00

354.00

Renewal of Holiday Homes Registration

228.00

236.00

236.00

Application to replace manager

31.00

32.00

32.00

 

 

 

 

Effluent Disposal Fee

 

 

 

Request for re-inspection

119.00

123.00

123.00

Local Government Report

247.00

255.00

255.00

Copy of Approval - Apparatus for Treatment of Sewage

109.00

113.00

113.00

 

 

 

 

Noise Monitoring Fees

 

 

 

The maximum "Statutory" fee for consideration of a Regulation 18 application for approval is $1000 (inc GST)

 

 

 

<500 persons

200.00

207.00

207.00

500 - 1,000 persons and 1 performing area only

500.00

518.00

518.00

500 - 1,000 persons and 2 or more performing areas

800.00

828.00

828.00

>1,000 persons and 1 performing area only

800.00

828.00

828.00

>1,000 persons and 2 or more performing areas

1,000.00

1,000.00

1,000.00

Noise monitoring fee - per hour

120.00

125.00

125.00

Noise Monitoring Report

250.00

260.00

260.00

 

 

 

 

General Fees

 

 

 

Request for a Section 39 Liquor Licence Certificate

184.00

190.00

190.00

Premises Plan Assessment Fee - miscellaneous

150.00

155.00

155.00

Request for Inspection of Premises - miscellaneous

167.00

173.00

173.00

Request for Premises Inspection Report

148.00

153.00

153.00

Reports to Settlement agents

100.00

103.00

103.00

Copy of  Certificate of analysis

26.00

27.00

27.00

 

 

 

 

TOWN PLANNING RELATED FEES

 

 

 

 

 

 

 

Fees for planning services listed in the Planning and Development Regulations 2009

As per the maximum fee listed in Schedule 2, Planning and Development Regulations 2009

As per the maximum fee listed in Schedule 2, Planning and Development Regulations 2009

As per the maximum fee listed in Schedule 2, Planning and Development Regulations 2009

Miscellaneous Planning Consent Applications

 

 

 

Provision of written advice confirming compliance with town planning and/or environmental health matters, and/or advising of town planning and environmental health requirements, prior to submissions of an application (per hour charge).

73.00

75.00

75.00

Research Fee for Planning Information (per hour charge)

98.00

101.00

101.00

Certificate of Local Planning Authority (or Local Government Authority where appropriate)

138.00

142.00

142.00

Extension of term of approval, approval of modified plans or reconsideration of conditions of approval where application is received more than 28 days from the date of the original decision (no fees are payable where application received within 28 days)

20% of the planning application fee that would apply to a new application, with the minimum fee being the fee payable for an application for planning consent.

20% of the planning application fee that would apply to a new application, with the minimum fee being the fee payable for an application for planning consent.

20% of the planning application fee that would apply to a new application, with the minimum fee being the fee payable for an application for planning consent.

Reconsideration of decision to refuse application for planning consent where application is received more than 28 days from the date of the original decision (no fees are payable where application received within 28 days)

40% of the planning application fee that would apply to a new application, with the minimum fee being the fee payable for an application for planning consent.

40% of the planning application fee that would apply to a new application, with the minimum fee being the fee payable for an application for planning consent.

40% of the planning application fee that would apply to a new application, with the minimum fee being the fee payable for an application for planning consent.

Assessment of plans or detailed documents required pursuant to a DGP, DAP or site-specific zoning provisions prior to development or subdivision.

Planning application fee as per Schedule 2 Planning and Development Regulations 2009, plus GST.

Planning application fee as per Schedule 2 Planning and Development Regulations 2009, plus GST.

Planning application fee as per Schedule 2 Planning and Development Regulations 2009, plus GST.

Permit to use (waived on the first callout or inspection)

152.00

158.00

158.00

Permit to commence (waived on the first callout or inspection)

152.00

158.00

158.00

Landgate Search

Cost plus 30%

Cost plus 30%

Cost plus 30%

Rcodes variation applications

Planning application fee as per Schedule 2 Planning and Development Regulations 2009

Planning application fee as per Schedule 2 Planning and Development Regulations 2009

Planning application fee as per Schedule 2 Planning and Development Regulations 2009

Agency referral fee (in addition to application fee)

115.00

118.00

118.00

Planning application consultation - neighbour and agency only (in addition to application fee)

120.00

114.00

114.00

Planning application consultation - requiring public advertising (in addition to application fee)

350.00

372.00

372.00

Applications for planning approval when required ONLY due to inclusion of property on adopted Heritage List

Full Fee Waiver ($0)

Full Fee Waiver ($0)

Full Fee Waiver ($0)

 

 

 

 

Provision of Hard Copy of Approved Plans

 

 

 

A4 Photocopy

13.00

14.00

14.00

A3 Photocopy

16.00

17.00

17.00

Computer Plotting (full colour) per sheet

 

 

 

A4 Sheet

27.00

30.00

30.00

A3 Sheet

32.00

35.00

35.00

A2 Sheet

42.00

45.00

45.00

A1 Sheet

65.00

68.00

68.00

 

 

 

 

Legal Agreements

 

 

 

Planning & Building Agreement Preparation Fees

At cost plus GST

At cost plus GST

At cost plus GST

Planning & Building Agreement Preparation Fees - External

At cost plus GST

At cost plus GST

At cost plus GST

 

 

 

 

RANGER & FIRE SERVICE RELATED FEES

 

 

 

 

 

 

ANIMAL CONTROL

 

 

 

 

 

 

 

Registration tag re-issue

Nil

Nil

Nil

 

 

 

 

Other LGA Registration transfer - Dogs & Cats

Nil

Nil

Nil

 

 

 

 

Cat/ Dog Traps

 

 

 

Cat/Dog Trap refundable deposit when requesting trap

98.00

100.00

100.00

 

 

 

 

IMPOUNDING FEES - ANIMALS

 

 

 

 

 

 

 

Impounding Fees - Dogs

 

 

 

Dog - Animal Facility Administration Fee

164.00

170.00

170.00

Sustenance Fees for first 72 hours

0.00

0.00

0.00

Sustenance Fees per day after 72 hours

27.00

28.00

28.00

 

 

 

 

Impounding Fees - Cats

 

 

 

Cat Impoundment Fee

164.00

170.00

170.00

Sustenance Fees for first 72 hours

0.00

0.00

0.00

Sustenance Fees per day after 72 hours

27.00

28.00

28.00

 

 

 

 

Ranger Fees to impound stock

 

 

 

Stock (1) to include entire horses, mules, asses, camels, bulls or boars, per head

 

 

 

 - if impounded after 6am & before 6pm

105.00

109.00

109.00

 - if impounded after 6pm and before 6am

128.00

132.50

132.50

 

 

 

 

Stock (2) to include mares, gelding, colts, fillies, foals, oxen, cows, steers, heifers, calves, rams or pigs - per head

 

 

 

 - if impounded after 6am & before 6pm

105.00

109.00

109.00

 - if impounded after 6pm and before 6am

128.00

132.50

132.50

 

 

 

 

Stock (3) to include wethers, ewes, lambs, goats - per head

 

 

 

 - if impounded after 6am & before 6pm

77.00

80.00

80.00

 - if impounded after 6pm and before 6am

99.00

102.50

102.50

 

 

 

 

Stock Poundage Fee

 

 

 

Stock (1) to include entire horses, mules, asses, camels, bulls or boars above or apparently above the age of 2 years - per head

 

 

 

 - First 24 hours or part

25.00

26.00

26.00

 - Subsequently each 24 hours or part

15.00

15.50

15.50

 

 

 

 

Stock (2) to include entire horses, mules, asses, camels, bulls or boars under age of 2 years - per head

 

 

 

 - First 24 hours or part

25.00

26.00

26.00

 - Subsequently each 24 hours or part

15.00

15.50

15.50

 

 

 

 

Stock (3) to include mares, gelding, colts, fillies, foals, oxen, cows, steers, heifers, calves, rams or pigs - per head

 

 

 

 - First 24 hours or part

25.00

26.00

26.00

 - Subsequently each 24 hours or part

15.00

15.50

15.50

 

 

 

 

Stock (4) to include wethers, ewes, lambs, goats - per head

 

 

 

 - First 24 hours or part

25.00

26.00

26.00

 - Subsequently each 24 hours or part

15.00

15.50

15.50

No charge is payable in respect of a suckling animal under the age of 6 months running with its mother

 

 

 

 

 

 

 

Sustenance of Impounded Stock

 

 

 

Stock (1) to include entire horses, mules, asses, camels, bulls or boars above or apparently above the age of 2 years - per head

 

 

 

 - For each 24 hours or part

13.00

13.50

13.50

 

 

 

 

Stock (2) pigs of any description - per head

 

 

 

 - For each 24 hours or part

13.00

13.50

13.50

 

 

 

 

Stock (3) rams, wethers, ewes, lambs or goats per head

 

 

 

 - For each 24 hours or part

13.00

13.50

13.50

No charge is payable in respect of a suckling animal under the age of 6 months running with its mother

 

 

 

 

 

 

 

IMPOUNDING FEES - OTHER

 

 

 

 

 

 

 

Signs

 

 

 

 Portable Signs

69.00

71.50

71.50

 Fixed Sign

130.00

135.00

135.00

 

 

 

 

Motor Vehicles

 

 

 

Impounded Motor Vehicle - per vehicle

120.00

124.50

124.50

Daily Impoundment Fee

25.00

26.00

26.00

Impounded Motor Vehicle Towing Fee - at cost

At Cost

At Cost

At Cost

 

 

 

 

Shopping Trolleys

 

 

 

Impounded Shopping Trolley - per trolley

66.00

68.50

68.50

 

 

 

 

RANGER & FIRE SERVICES - ADMIN COSTS

 

 

 

 Ranger time per hour

118.18

122.45

134.70

 Ranger travelling costs (mileage): per kilometre

1.18

1.22

1.34

 

 

 

 

RANGER & FIRE SERVICES - MISCELLANEOUS

 

 

 

 

 

 

 

Application for permit for portable sign

200.00

207.00

207.00

Application for permit pursuant to Thoroughfares Local Law where no fee otherwise identified

300.00

310.00

310.00

Application for Temporary Parking Permit - (per day or part thereof)

32.00

33.00

33.00

Application for beach/reserve vehicle access permit - per day

11.00

11.50

11.50

Application for beach/reserve vehicle access permit - annual permit

148.00

153.00

153.00

Application for beach/reserve vehicle access permit - renewal of annual permit

99.00

104.00

104.00

Application for beach/reserve vehicle access permit - transfer of annual permit

80

83.00

83.00

Dog disposal / rehousing fee: voluntary surrender by owner: fee per dog

125.00

129.00

129.00

 

 

 

 

Fire Hazard Clearing

 

 

 

 - Administration Fee

123.00

127.00

127.00

 - Contractors Fee: actual cost

At Cost

At Cost Plus GST

At Cost Plus GST

 

 

 

 

 

 

 

 

MEELUP REGIONAL PARK

 

 

 

 

 

 

 

Competitor Charges

 

 

 

Trail events -  per competitor                                                                                                         For events and activities including mountain biking, off road running, off road triathlon, adventure race.

2.73

2.82

3.10

Site based events - per patron/competitor                                                                                               Charge or fee is imposed on patrons/competitors attending the event and or activity but excluding leavers activities

3.64

3.77

4.15

 

 

 

 

Event Bonds

 

 

 

Category 1 (< 500 patrons)

New

2,500.00

2,500.00

Category 2 (500 - 2,500 patrons)

New

5,000.00

5,000.00

Category 3 (> 2,500 patrons)

New

10,000.00

10,000.00

 

 

 

 

Brochure

 

 

 

Wildflowers Brochure

2.27

2.27

2.50

 

 

 

 

ENGINEERING & WORKS SERVICES

 

 

 

 

 

 

MISCELLANEOUS

 

 

 

 

 

 

 

Reinstatements/ Private Works

 

 

 

Road reserves charge for reinstatement of road reserves is the full cost plus profit margin as per Policy

Cost plus 30% plus GST

Cost plus 30% plus GST

Cost plus 30% plus GST

Private works charge for works requested to be undertaken by City resources is the full cost plus profit margin as per Policy

Cost plus 30% plus GST

Cost plus 30% plus GST

Cost plus 30% plus GST

 

 

 

 

Other crossing place related services

 

 

 

Saw cutting & removal of kerbing/ m (minimum charge $100)

Cost plus 30% plus GST

Cost plus 30% plus GST

Cost plus 30% plus GST

Concrete apron for brick paved crossovers/ m

Cost plus 30% plus GST

Cost plus 30% plus GST

Cost plus 30% plus GST

Spray seal pothole repairs/m2 (minimum charge $100)

Cost plus 30% plus GST

Cost plus 30% plus GST

Cost plus 30% plus GST

Asphalt pothole repairs/m2 (minimum charge $100)

Cost plus 30% plus GST

Cost plus 30% plus GST

Cost plus 30% plus GST

 

 

 

 

Outstanding Works Bond determined by the Chief Executive Officer

 

 

 

If the number of work items outstanding < 5

Value + 50%

Value + 50%

Value + 50%

If the number of work items outstanding =/> 5

Value + 100%

Value + 100%

Value + 100%

 

 

 

 

Subdivision Works - Maintenance Bonds

 

 

 

% of Total value of all Works: held for 12 months from practical completion and until all items are satisfactorily completed

 

 

 

0 -100,000

5%

5%

5%

100,000 - 200,000

4%

4%

4%

200,000 - 400,000

3.5%

3.5%

3.5%

400,000 - 600,000

3%

3%

3%

over 600,000

2.5%

2.5%

2.5%

 

 

 

 

ROAD/ TRAFFIC RELATED FEES

 

 

 

 

 

 

 

Closure of Roads/ Rights of way/ Public Access Ways

 

 

 

Road closure Fees (includes administration and advertising)

720.00

745.00

745.00

*Road Closure Application Approval - one off events

72.00

75.00

75.00

Advertising Fee for road issue or works

430.00

445.00

445.00

Road dedication (including advertising and administration)

654.00

677.00

677.00

Legal Fees for road indemnification (document preparation & execution)

710.00

735.00

735.00

 

 

 

 

Road openings - Works by Contractors

 

 

 

Application Fee - Trenching and/ or boring on roads and reserves

307.00

318.00

318.00

Administration/Inspection Fee - Road Opening or Underground Boring

74.00

77.00

77.00

Refundable Security Deposit

 

 

 

Road opening/ m2 (minimum $250)

105.00

109.00

109.00

 - Under road boring

283.00

293.00

293.00

Performance Bond relating to Road Opening & reinstatement by Contractor / m2 (minimum fee $250)

135.00

140.00

140.00

 

 

 

 

Exploration Drilling Licence - District Roads/ Reserves

 

 

 

1-5 holes

279.00

289.00

289.00

6-10 holes

417.00

432.00

432.00

11-30 holes

848.00

878.00

878.00

31-100 holes

1,503.00

1,556.00

1,556.00

more than 100 holes

2,147.00

2,222.00

2,222.00

Bond payable is determined to be equal to the Licence Fee payable

 

 

 

 

 

 

 

Traffic Management