COB-RGB

 

 

 

 

 

Finance Committee Agenda

 

 

 

18 January 2018

 

 

 

 

 


ALL INFORMATION AVAILABLE IN VARIOUS FORMATS ON REQUEST

city@busselton.wa.gov.au

 

 


CITY OF BUSSELTON

MEETING NOTICE AND AGENDA – 18 January 2018

 

 

 

TO:                  THE MAYOR AND COUNCILLORS

 

 

NOTICE is given that a meeting of the Finance Committee will be held in the the Committee Room, Administration Building, Southern Drive, Busselton on Thursday, 18 January 2018, commencing at 9.30am.

 

The attendance of Committee Members is respectfully requested.

Statements or decisions made at Council meetings or briefings should not be relied on (or acted upon) by an applicant or any other person or entity until subsequent written notification has been given by or received from the City of Busselton. Without derogating from the generality of the above, approval of planning applications and building permits and acceptance of tenders and quotations will only become effective once written notice to that effect has been given to relevant parties. The City of Busselton expressly disclaims any liability for any loss arising from any person or body relying on any statement or decision made during a Council meeting or briefing.

 

 

 

Mike Archer

 

CHIEF EXECUTIVE OFFICER

 

12 January 2018


CITY OF BUSSELTON

Agenda FOR THE Finance Committee MEETING TO BE HELD ON 18 January 2018

TABLE OF CONTENTS

 

ITEM NO.                                        SUBJECT                                                                                                                              PAGE NO.

1....... Declaration of Opening and Announcement of Visitors. 4

2....... Attendance. 4

3....... Public Question Time. 4

4....... Disclosure Of Interests. 4

5....... Confirmation Of Minutes. 4

5.1          Minutes of the Finance Committee Meeting held 25 December 2017. 4

6....... Reports. 5

6.1          DONATIONS/CONTRIBUTIONS AND SUBSIDIES FUND - NOVEMBER 2017. 5

6.2          DONATIONS/CONTRIBUTIONS AND SUBSIDIES FUND - DECEMBER 2017. 7

6.3          ASSET MANAGEMENT REPORT. 9

6.4          LIST OF PAYMENTS MADE NOVEMBER & DECEMBER 2017. 13

6.5          FINANCIAL ACTIVITY STATEMENTS - PERIODS ENDING 30 NOVEMBER & 31 DECEMBER 2017  56

6.6          REVIEW OF POLICY 048 - LOANS. 96

6.7          BUDGET AMENDMENT REQUEST. 103

7....... General Discussion Items. 107

8....... Next Meeting Date. 107

9....... Closure. 107

 


Finance Committee                                                             4                                                                  18 January 2018

 

1.               Declaration of Opening and Announcement of Visitors

2.               Attendance 

Apologies

3.               Public Question Time  

4.               Disclosure Of Interests

5.               Confirmation Of Minutes

5.1             Minutes of the Finance Committee Meeting held 16 November  2017

Recommendation

That the Minutes of the Finance Committee Meeting held 16 November 2017 be confirmed as a true and correct record.

 


Finance Committee                                                             6                                                                  18 January 2018

6.               Reports

6.1             DONATIONS/CONTRIBUTIONS AND SUBSIDIES FUND - NOVEMBER 2017

SUBJECT INDEX:

Donations/Contributions

STRATEGIC OBJECTIVE:

Governance systems, process and practices are responsible, ethical and transparent.

BUSINESS UNIT:

Governance Services

ACTIVITY UNIT:

Governance Services

REPORTING OFFICER:

Executive Assistant to Council - Katie Banks

AUTHORISING OFFICER:

Chief Executive Officer - Mike Archer

VOTING REQUIREMENT:

Simple Majority

ATTACHMENTS:

Nil

  

PRÉCIS

 

This report provides an overview of the Donations and Contributions that have been allocated, that is considered of relevance to members of the Finance Committee, and also the Council.

 

FINANCIAL IMPLICATIONS

 

The annual budget allowance for the Donations, Contributions and Subsidies Fund (Sponsorship Fund) is $40,000.

 

·    Total expenditure prior to this report is $10,478.50

 

·    Current Balance Available is $29,521.50

 

·    In November 2017 there were 7 applications received for sponsorship totaling $1,800.00

 

·    The balance available for future donations is $27,721.50

 

App. No.

Recipient

Purpose

Amount

45/1718

Naturaliste Renewable Energy Group Inc.

Funds to assist with the delivery of a free Community Renewable Energy Toolkit Workshop on 14 November 2017 (Railway House, Busselton)

$500.00

46/1718

Sarah Hales

Seeking funds to assist with associated travel expenses to sail the 29er sailing Nationals in Brisbane, December 2017. Application not supported as participation is not a result of selection through a formal qualifying process.

$0.00

47/1718

Dunsborough Arts Society

Holding their annual art exhibition in January 2018 and are seeking funds towards the hall hire and prizes

$500.00

48/1718

Kai Colman

Seeking funds to assist with associated travel expenses to sail the 29er sailing Nationals in Brisbane, December 2017. Application not supported as participation is not a result of selection through a formal qualifying process.

$0.00

49/1718

St Mary's Anglican Church

Funds to assist with the purchase of food for the 6th Annual Christmas Day Luncheon for the needy & homeless at St Mary’s Family Centre.

$600.00

50/1718

Louis Tunstill

Selected to represent WA at the School Sport National Pacific Games in Adelaide as part of the hockey 16’s team. Funds to assist with associated travel expenses.

$200.00

51/1718

Swimming Mermaids

Seeking funding to cover insurance for their open water swim event at Meelup in March 2018. The event is not free of charge; participants are required to pay a $20 registration fee. Application not supported due to not meeting funding guidelines.

$0.00

 

 

OFFICER RECOMMENDATION

 

That the donations and sponsorships for the month of November 2017 be noted.

 

 


Finance Committee                                                             8                                                                  18 January 2018

6.2             DONATIONS/CONTRIBUTIONS AND SUBSIDIES FUND - DECEMBER 2017

SUBJECT INDEX:

Donations/Contributions

STRATEGIC OBJECTIVE:

Governance systems, process and practices are responsible, ethical and transparent.

BUSINESS UNIT:

Governance Services

ACTIVITY UNIT:

Governance Services

REPORTING OFFICER:

Executive Assistant to Council - Katie Banks

AUTHORISING OFFICER:

Chief Executive Officer - Mike Archer

VOTING REQUIREMENT:

Simple Majority

ATTACHMENTS:

Nil

  

PRÉCIS

 

This report provides an overview of the Donations and Contributions that have been allocated, that is considered of relevance to members of the Finance Committee, and also the Council.

 

FINANCIAL IMPLICATIONS

 

The annual budget allowance for the Donations, Contributions and Subsidies Fund (Sponsorship Fund) is $40,000.

 

·    Total expenditure prior to this report is $12,278.50

 

·    Current Balance Available is $27,721.50

 

·    In December 2017 there were 9 applications received for sponsorship totaling $1,675.19

 

·    The balance available for future donations is $26,046.31

 

App. No.

Recipient

Purpose

Amount

52/1718

Busselton Hospice Inc.

Seeking waiver of fees associated with installation of updated signage on Bussell Hwy

$202.94

53/1718

Ross Rann

Representing WA in the swimming team at the School Sport National Pacific Games in Adelaide. Funds to assist with associated travel expenses.

$200.00

54/1718

Bunbury Triathlon Club

Seeking funds for traffic and water costs associated with organising the Goose Triathlon Race in Busselton. Application not supported as event entry is only free for Bunbury Tri Club members and therefore does not meet funding guidelines.

$0.00

55/1718

Connor Dallachy

Representing WA at the Tenpin Bowling Australia Junior National Championships in Melbourne. Funds to assist with associated travel expenses.

$200.00

56/1718

Legacy’s Annual Children’s Camp

Fee waiver requested for temporary caravan and camping permit for annual children's camp held at Locke Estate.

$100.00

57/1718

Luca Davis

Representing WA in the U 15's men’s Basketball team at the Southern Cross Challenge held in Melbourne – January 2018. Funds to assist with associated travel expenses.

$200.00

58/1718

Disabled Surfer’s Association WA - Let’s Go Surfing days

Fee waiver requested for the Let’s go Surfing Day at Bunker Bay event application.

$72.25

59/1718

Busselton Ukulele Strummers Inc.

Request for consideration of a Undalup Room hire fee concession venue for the Ukulele concert on 3/3/18 (expecting approx. 200 attendees)

$500.00

60/1718

Charles Sissoev

Representing WA in the U14's men’s basketball team at the Southern Cross challenge in Melbourne - January 2018. Funds to assist with associated travel expenses.

$200.00

 

 

OFFICER RECOMMENDATION

 

That the donations and sponsorships for the month of December 2017 be noted.

 

 


Finance Committee                                                             10                                                                18 January 2018

6.3             ASSET MANAGEMENT REPORT

SUBJECT INDEX:

 

STRATEGIC OBJECTIVE:

Road networks that provide for a growing population and the safe movement of all users through the District.

BUSINESS UNIT:

Engineering and Facilities Services

ACTIVITY UNIT:

 

REPORTING OFFICER:

Asset Management Officer - Barrie Naylor

AUTHORISING OFFICER:

Director, Engineering and Works Services - Oliver Darby

VOTING REQUIREMENT:

Simple Majority

ATTACHMENTS:

Nil

  

PRÉCIS

 

The Purpose of this report is to provide the finance committee with asset management information relevant to the financial management of the City of Busselton.  It will outline what the activities are and how they will or may impact the financial management of the City. It is not intended as an exhaustive list of all the asset management undertakings for the period, rather a targeted report detailing issues relevant to the Finance Committee.

 

Asset Management Report

 

Updated Roading Infrastructure Asset Data and its Effect on Fair Value

 

BACKGROUND

 

The Fair Value of Council’s Infrastructure assets has to be reported every three years and is used to generate sustainability ratios in respect of Councils ability to sustainably manage its asset portfolios. This data was first reported at the end of the 2014/15 financial year and is due a second time at the end of the current 2017/18 financial year.

 

STATUTORY ENVIRONMENT

 

Australian Accounting Standards Board AASB13_08_15

All local governments in WA are required to prepare financial statements in accordance with the Local Government Act 1995 (the Act), Local Government (Financial Management) Regulations 1996 (Regulations), AASBs and Australian Interpretations.

 

RELEVANT DEFINITIONS AND METHODOLOGY

 

Just what is the fair value of an asset? The Australian Accounting Standards Board, define this as: - an amount at which an asset could be exchanged between knowledgeable and willing parties in an arm’s length transaction".

Under the fair value measurement approach, assets and liabilities are re-measured periodically to reflect changes in their value, with the resulting change impacting either net income or other comprehensive income for the period. The result is a balance sheet that better reflects the current value of assets and liabilities.

 

Fair value is a market-based measurement, not an entity-specific measurement. For some assets and liabilities, observable market transactions or market information might be available. For other assets and liabilities, observable market transactions and market information might not be available.

 

 

However, the objective of a fair value measurement in both cases is the same – to estimate the price at which an orderly transaction to sell the asset or to transfer the liability would take place between market participants at the measurement date under current market conditions (i.e. an exit price at the measurement date from the perspective of a market participant that holds the asset or owes the liability).

 

When a price for an identical asset or liability is not observable, an entity measures fair value using another valuation technique that maximises the use of relevant observable inputs and minimises the use of unobservable inputs. Because fair value is a market-based measurement, it is measured using the assumptions that market participants would use when pricing the asset or liability, including assumptions about risk. As a result, an entity’s intention to hold an asset or to settle or otherwise fulfil a liability is not relevant when measuring fair value.

Hence the definition of fair value focuses on assets and liabilities because they are a primary subject of accounting measurement. In addition, this Standard shall be applied to an entity’s own equity instruments measured at fair value.

 

This means that Fair Value will include what is observable in a road section but will exclude unobservable inputs, such as design fees, traffic management costs etc. Consequently each roading element is valued using unit costs for what is observable, e.g. Seal, Pavement, kerbing etc. This generates a figure for an as new condition asset which is then adjusted based upon the assets condition; these adjustments are based on a typical degradation curve such as that shown in chart 1 below.

 

CHART 1

The minimisation of unobservable cost inputs means that the Fair Value reported, for say a newly constructed road, will not necessarily reflect the full cost to build that road, but rather, just what is on the ground at completion.

The degradation curve shows also that an asset at condition 8 or above has effectively used up the whole of its useful life and will therefore carry little of no fair value.

 


 

FINANCIAL IMPLICATIONS

 

In June 2015 The City reported the Fair Value of roading Infrastructure as follows:-

 

Sealed Roads $236,918,949

Unsealed Roads $15,827,423

Carparks $8,569,219

Kerbs $11,059,587

Airport Surfaces $4,739,892

TOTAL $277,115,070

 

 TOTAL $327,613,034   (+$50,497,964)

 

Whilst these figures only apply to roading infrastructure, this gives the City some indication of what to expect when we finally declare fair value at the end of this financial year.

 

Fair Value for roading infrastructure moves on a daily basis as the network changes, factors affecting this value include:-

 

Donated assets from developments

Addition/construction of new assets, (expansion)

Rehabilitation of existing assets, (renewal)

Changed and improved assets, (Improvement)

Removal of assets (disposal)

Inclusion of newly assessed assets, (e.g. TMD’s)

Declining condition in the existing asset portfolio, (depreciation).

 

Long-term Financial Plan Implications

 

Prioritised List of Roads

 

One of the challenging aspects of the integrated planning process has been the scheduling of predicted road renewals as a balanced budget over a period of ten years. In theory, a detailed list of projects over a period of ten years (balanced to a budget each year) is a valuable planning tool; in reality it is extremely difficult to manage as a document on an ongoing basis in a process that is designed for annual review and update. Documents within the integrated planning framework are essentially living documents that change and grow in-line with organisational needs and priorities. Any documents within this framework need to have the ability to be modified an updated on a regular basis.

 

Predicted future renewal works for roads have therfore been shown within the updated Overall Asset Management Plan in terms of a prioritised list rather than a balanced ten year budget. This saves time with the production of the document, which allows it to be updated and reproduced in a shorter timeframe and on a more regular basis.

Where possible however, certain elements of the planned road expenditure have been separated out and shown as a schedule of works. This has been made possible by these elements having a smaller list of roads eligible and/or the pre-existing need for a schedule to be produced to satisfy certain funding criteria.

 


 

The Narrow Country Road Program, Regional Road Group Funding and the Traffic Study Implementation are shown as works schedules separate to the Prioritised list of works.

At the conclusion of the upcoming ten year period (as outlined within the LTFP) it is anticipated that the majority of the works listed in the prioritised schedule will be completed. This will generally be undertaken via renewal of highest priority score first and moving down the list from there. There will be numerous occasions however, where roads attracting a higher score may be delayed in favor of a lower scoring road. This will be in instances such as grouping of works by locality to improve efficiency and economies of scale and also roads requiring earlier renewal for other strategic purposes.

 

Chainage (Ch.) is the measurement used to determine locations along the length of the road. Each road has a start and end point, with the start point being at Chainage zero. This number increases along the road until such time as the road finishes.

From Ch. to Ch. in the prioritised list represents the section of road which is scheduled to be renewed. (Chainage is measured in meters).

 

Priority Score is derived from a range of criteria including the Pavement Condition Index, (PCI), and other factors for heavy haulage and school bus routes, safety, road hierarchy, traffic volumes and tourism destinations.

 

OFFICER RECOMMENDATION

 

That the Council note The Asset Management Report for February 2018.

 


Finance Committee                                                             13                                                                18 January 2018

6.4             LIST OF PAYMENTS MADE NOVEMBER & DECEMBER 2017

SUBJECT INDEX:

Financial Operations

STRATEGIC OBJECTIVE:

Governance systems, process and practices are responsible, ethical and transparent.

BUSINESS UNIT:

Finance and Corporate Services

ACTIVITY UNIT:

Financial Services

REPORTING OFFICER:

Manager Financial Services - Kim Dolzadelli

AUTHORISING OFFICER:

Director, Finance and Corporate Services - Cliff Frewing

VOTING REQUIREMENT:

Simple Majority

ATTACHMENTS:

Attachment a   List of Payments November 2017

Attachment b    List of Payments December 2017  

  

PRÉCIS

 

This report provides details of payments made from the City’s bank accounts for the months of November and December 2017, 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

 

NA.

 

RISK ASSESSMENT

 

NA.

 

CONSULTATION

 

NA.

 


 

OFFICER COMMENT

 

In accordance with regular custom, the list of payments made for the months of November and December 2017 is presented for information.

 

CONCLUSION

 

NA.

 

OPTIONS

 

NA.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

 

NA.

 

OFFICER RECOMMENDATION

 

That the Council notes payment of voucher numbers M115015 – M115206, EF055245 – EF056452, T007376 – T007378, and DD003289 – DD003338; together totalling $19,006,278.32.

 

 


Finance Committee

15

18 January 2018

6.4

Attachment a

List of Payments November 2017

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 

 


Finance Committee

55

18 January 2018

6.4

Attachment b

List of Payments December 2017

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 

 


Finance Committee                                                             67                                                                18 January 2018

6.5             FINANCIAL ACTIVITY STATEMENTS - PERIODS ENDING 30 NOVEMBER & 31 DECEMBER 2017

SUBJECT INDEX:

Budget Planning and Reporting

STRATEGIC OBJECTIVE:

Governance systems, process and practices are responsible, ethical and transparent.

BUSINESS UNIT:

Finance and Corporate Services

ACTIVITY UNIT:

Financial Services

REPORTING OFFICER:

Manager Financial Services - Kim Dolzadelli

AUTHORISING OFFICER:

Director, Finance and Corporate Services - Cliff Frewing

VOTING REQUIREMENT:

Simple Majority

ATTACHMENTS:

Attachment a   FINACIAL ACTIVITY STATEMENT PERIOD ENDING 30 NOVEMBER 2017

Attachment b    FINANCIAL ACTIVITY STATEMENT PERIOD ENDING 31 DECEMBER 2017

Attachment c    INVESTMENT REPORT PERIOD ENDING 30 NOVEMBER 2017

Attachment d   INVESTMENT REPORT PERIOD ENDING 31 DECEMBER 2017  

 

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 30 November 2017 and 31 December 2017.  This report will focus on results for the period ending 31 December 2017, being the most current information on which to report.

 

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 26 July 2017, the Council adopted (C1707/163) the following material variance reporting threshold for the 2017/18 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 2017/18 financial year as follows:

 

·    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; and

·    Reporting of variances only applies for amounts greater than $25,000.”

 

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

 

Not applicable.

 

FINANCIAL IMPLICATIONS

 

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

 

Long-term Financial Plan 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 6.1 - ‘Governance systems, process and practices are responsible, ethical and transparent’. 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 control that assists in addressing this risk

 

CONSULTATION

 

Not applicable

 

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 full year 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 full year basis, and reconciles with the net current position as per the Statement of Financial Activity.

 

§   Capital Acquisition Report

This report provides full year 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 full year 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 31 December 2017

 

The Statement of Financial Activity for the period ending 31 December 2017 shows a better than expect Net Current Position (Surplus) of $22.97M being $8.26M more than Year to Date Budget.

 

The following summarises the major variances in accordance with Council’s adopted material variance reporting threshold that collectively make up the above difference:

 

Description

2017/2018
Actual

2017/2018
Amended
Budget YTD

2017/2018
Amended
Budget

2017/2018
Original
Budget

2017/18
YTD Bud
Variance

2017/18
YTD Bud
Variance

$

$

$

$

%

$

Revenue from Ordinary Activities

Other Revenue

286,051

204,383

416,167

403,838

39.96%

81,668

Interest Earnings

1,409,478

1,131,498

2,262,996

2,262,996

24.57%

277,980

1,695,529

1,335,881

2,679,163

2,666,834

64.53%

359,648

0

Expenses from Ordinary Activities

0

Materials & Contracts

(7,331,237)

(8,680,507)

(16,832,737)

(16,639,971)

15.54%

1,349,270

Utilities (Gas, Electricity, Water etc)

(1,109,066)

(1,292,836)

(2,580,822)

(2,580,822)

14.21%

183,770

Allocations

684,986

998,450

1,996,270

1,996,270

31.40%

(313,464)

(7,755,317)

(8,974,893)

(17,417,289)

(17,224,523)

61.15%

1,219,576

0

Non-Operating Grants, Subsidies and Contributions

2,513,475

13,541,835

43,437,175

42,079,630

-81.44%

(11,028,360)

Profit on Asset Disposals

48,793

13,750

22,400

22,400

254.86%

35,043

Loss on Asset Disposals

(435,173)

(5,100)

(6,252)

(6,252)

-8432.80%

(430,073)

2,127,095

13,550,485

43,453,323

42,095,778

-8259.38%

(11,423,390)

Capital Revenue & (Expenditure)

Land & Buildings

(2,992,361)

(8,091,652)

(16,556,693)

(16,531,693)

63.02%

5,099,291

Plant & Equipment

(969,736)

(2,388,652)

(4,279,400)

(4,029,400)

59.40%

1,418,916

Furniture & Equipment

(296,848)

(587,758)

(830,212)

(830,212)

49.49%

290,910

Infrastructure

(15,377,795)

(28,877,810)

(60,472,821)

(59,905,821)

46.75%

13,500,015

Proceeds from New Loans

110,000

9,960,000

10,110,000

11,110,000

-98.90%

(9,850,000)

Transfer to Restricted Assets

(1,705,292)

(309,501)

(625,751)

(625,751)

-450.98%

(1,395,791)

Transfer from Restricted Assets

11,222,234

7,354,556

27,808,739

27,808,739

52.59%

3,867,678

Transfer to Reserves

(7,082,013)

(9,730,166)

(16,285,572)

(16,285,572)

27.22%

2,648,153

Transfer from Reserves

1,560,543

1,146,659

19,921,964

19,486,964

36.09%

413,884

 

Operating Revenue:

 

Revenue from ordinary activities is $359K more than expected when compared to Year to Date (YTD) Budget with the following items meeting the material variance reporting threshold set by Council for the 2017/2018 Financial Year.

Description

2017/2018
Actual

2017/2018
Amended
Budget YTD

2017/2018
Amended
Budget

2017/18
YTD Bud
Variance

2017/18
YTD Bud
Variance

$

$

$

%

$

Revenue from Ordinary Activities

Other Revenue

286,051

204,383

416,167

39.96%

81,668

Interest Earnings

1,409,478

1,131,498

2,262,996

24.57%

277,980

1,695,529

1,335,881

2,679,163

64.53%

359,648

 

The items predominately impacting the above “Other Revenue” performance is as follows:

 

·    CLAG (Contiguous Local Authority Group) Funding in the amount of $69K, this item is to be transferred to Trust, and

·    Sale of Scrap Metals Busselton and Dunsborough Waste Facilities $45K.

 

The items predominately impacting the above “Interest Earnings” performance is as follows:

 

·    Rate Instalment Plan Interest $120K – this is a timing difference only,

·    Interest on Restricted Funds $106K – staff will continue to monitor this variation to establish if this positive trend is to continue.

 

Interim Rates:

 

Officers continue to monitor Interim Rating Income levels and present the following information noting that the YTD Budget figure has already been met, a Budget amendment will be sought as part of the City’s mid-term Budget Review:

 

 

Operating Expenditure:

 

Expenditure from ordinary activities is $1.85M less than expected when compared to Year to Date (YTD) Budget with the following items meeting the material variance reporting threshold set by Council for the 2017/2018 Financial Year.

 

Description

2017/2018
Actual

2017/2018
Amended
Budget YTD

2017/2018
Amended
Budget

2017/18
YTD Bud
Variance

2017/18
YTD Bud
Variance

$

$

$

%

$

Expenses from Ordinary Activities

Materials & Contracts

(7,331,237)

(8,680,507)

(16,832,737)

15.54%

1,349,270

Utilities (Gas, Electricity, Water etc)

(1,109,066)

(1,292,836)

(2,580,822)

14.21%

183,770

Allocations

684,986

998,450

1,996,270

31.40%

(313,464)

(7,755,317)

(8,974,893)

(17,417,289)

61.15%

1,219,576

 

Materials and Contracts:

The main items affected are list below, at this stage these variance are considered to be that of a timing nature and/or there are offsets that negate the impact of these items.

 

Cost Code

Cost Code Description / GL Activity

Variance
YTD

Finance and Corporate Services

10250

Information & Communication Technology Services

(128,878)

10251

Business Systems

151,104

Sub Total

22,226

Community and Commercial Services

10591

Geographe Leisure Centre

42,171

10600

Kookaburra Caravan Park

49,318

10635

Regional Centres Program

60,000

10980

Other Law, Order & Public Safety

141,433

11151

Airport Operations

(36,721)

Sub Total

256,202

Planning and Development Services

10820

Strategic Planning

92,437

10830

Environmental Management Administration

90,165

10925

Preventative Services - CLAG

63,996

11170

Meelup Regional Park

76,874

Sub Total

323,472

Engineering and Works Services

11101

Engineering Services Administration

28,581

11106

Street Lighting Installations

69,826

11160

Busselton Jetty

279,114

12600

Street & Drain Cleaning

37,931

A9999

Miscellaneous Bridge Maintenance

67,010

B1000

Administration Building- 2-16 Southern Drive

(47,785)

G0010

Domestic Recycling Collections

104,207

G0030

Busselton Transfer Station

49,291

G0032

Rubbish Sites Development

45,868

G0042

BTS External Restoration Works

115,262

M9999

Road Maintenance Bal Of Budget

168,454

R0004

Bsn Foreshore Precinct (not including Skate Park)

(80,842)

R0700

Dunsborough Oval and Skate Park

(38,779)

R0850

Streetscape Medians & Trees (Kealy)

(44,032)

R1000

Street Furniture - Bsn, Duns, Yallingup

(42,320)

Sub Total

711,788

Transport - Fleet Management

5280

Transport - Fleet Management

176,010

Sub Total

176,010

Grand Total

1,489,697

 

Utilities:

Costs associated with the 364 individual Utility accounts show a cost of $1.1M, resulting in a favourable position of $184K at the 31st December. The variance is considered likely to be a timing difference at this early stage of the reporting year specifically when we are now entering the summer period.

 

Allocations:

Allocations are currently tracking below YTD Budget by $314K, these items are of a internal non cash nature.

 

Non-Operating Grants, Subsidies and Contributions:

The main item impacting on the above result is the timing of the receipt of “Airport Development - Project Grant” of $9.27M and 1.35M for the Foreshore East-Youth Precinct Community Youth Building/SLSC project with a current negative result of $11.03M; this is a timing difference in nature only.

 

Capital Expenditure

As at 31 December 2017, there is a variance of -50.84% or -$20.3M in total capital expenditure with YTD Actual at -$19.64M against a YTD Budget of -$39.94M; with the table below showing those categories exceeding the 10% material variance threshold.   The Airport Development makes up for $7.95M or 39% and Other Infrastructure projects making up $5.55M or 27.32% of the overall variance which also assists in explaining the above current YTD shortfall in Non-Operating Grants.

 

 

Description

2017/18

Budget YTD Variance

Land

 

10610

Property Services Administration

            (50,000)

 

Subtotal

(50,000)

Buildings

 

Major Project - Administration Building

B9010

Civic and Administration Centre Construction

          (193,370)

 

Subtotal

(193,370)

 

Buildings (Other)

 

B9112

Ambergate Bushfire Brigade Shed

            (61,656)

B9517

GLC - Pool Relining

            (76,777)

B9528

GLC - Plant Room

            (49,136)

B9591

Performing Arts Convention Centre

            (50,000)

B9594

Vasse Community Recreation Precinct

              36,903

B9716

Airport Terminal Stage 2

      (4,500,000)

B9804

Kook Park Home

            (94,552)

 

Subtotal

(4,795,218)

Plant & Equipment

 

10610

Property Services Administration

            (35,000)

10810

Statutory Planning

              30,113

10950

Animal Control

            (34,872)

11401

Transport - Workshop

            (43,278)

11402

Plant Purchases (P10) (Waste)

      (1,313,344)

11403

Plant Purchases (P11) ( Minor Plant)

            (50,502)

11404

Plant Purchases (P12) (Major Plant)

              25,240

 

Subtotal

(1,421,642)

Furniture & Office Equipment

 

10250

Information & Communication Technology Services

             52,417

10251

Business Systems

           (80,907)

10900

Cultural Planning

           (32,000)

B1000

Administration Building- 2-16 Southern Drive

           (91,050)

B1361

YCAB (Youth Precinct Foreshore)

           (46,827)

 

Subtotal

(198,367)

Major Project - Busselton Foreshore

 

C3094

Busselton Foreshore - Stage 3

         1,286,229

C3113

Busselton Tennis Club - Infrastructure

       (1,281,059)

C3150

Busselton Foreshore Stage 3: Toddler's Playground

            (92,838)

C3168

Busselton Foreshore Jetty Precinct

         (779,835)

C3173

Barnard Park Pavillion Landscaping

              60,157

(807,345)

 

 

Major Project - Administration Building

 

C0043

Administration Building Carpark

          (100,995)

 

Subtotal

(100,995)

Footpaths Construction

 

F0035

Dunsborough Lakes Drive to N.C.C.

            (75,993)

F0066

Bussell Highway Footpath Sections

         (194,910)

 

Description

2017/18

Budget YTD Variance

 

 

 

F0074

Milward Street – Ford Road to Cookworthy Street

            (27,314)

F0075

Armitage Drive Footpath - Navigation Way to Avocet Boulevard

            (30,000)

F0076

Vasse Bypass Road Footpath

            (65,000)

 

Subtotal

(393,217)

Drainage Construction - Street

 

D0015

Valley Road Drainage Upgrade

          (129,009)

D0017

Chain Avenue - Drainage Works

            (26,452)

(155,461)

Bridges Construction

 

A0010

Queen Street Bridge 0240A

          (144,000)

 

Subtotal

(144,000)

 

 

Cycleways Construction

 

F1019

Busselton Bypass - Country Road Footpath

          (111,001)

 

Subtotal

          (111,001)

 

 

Townscape Construction

 

C1001

Queen Street Upgrade - Duchess to Kent Street

            (61,314)

C1024

Dunsborough Road Access Improvements Stage 1

          (293,846)

 

Subtotal

(355,159)

Boat Ramps Construction

 

C1513

Port Geographe Boat Trailer Parking Layout Redevelopment

            (98,010)

 

Subtotal

(98,010)

Beach Restoration

 

C2512

Sand Re-Nourishment

              59,820

 

Subtotal

59,820

Parks, Gardens & Reserves

 

C3122

Rails to Trails

            (79,602)

C3145

Churchill Park

              50,593

C3146

Dunsborough Town Centre

            (43,811)

C3154

Administration Building Landscaping Works

            257,011

C3159

Port Geographe - Burgee Close (Western Side of Bridge)

            (47,334)

C3160

Port Geographe - Reticulated POS at Layman Rd R/About

         (124,505)

C3164

Port Geographe - Reticulation Upgrade Scheme to Bore Water

         (167,496)

C3165

Foreshore - Irrigation Renewal

            (30,002)

C3166

Vasse River Foreshore - Bridge to Bridge project Stage 1

            (37,500)

C3167

Advanced Bore Monitoring Equipment

            (49,998)

C3172

Vasse Newtown - AFL Oval Stage 2

            119,225

 

Subtotal

(153,418)

Sanitation Infrastructure

 

C3479

New Cell Development

         (310,983)

C3481

Transfer Station Development

            (38,007)

C3485

Site Rehabilitation - Busselton

         (295,968)

 

Subtotal

(644,959)

 

 

 

 

 

Description

2017/18

Budget YTD Variance

 

 

Airport Development

 

C6087

Airport Construction Stage 2, Landside Civils & Services Inf

        (3,943,006)

C6091

Airport Construction Stage 2, Noise Management Plan

          (143,961)

C6092

Airport Construction Stage 2, Airfield

        (2,603,883)

C6095

Airport Construction Stage 2, External Services

        (1,243,205)

C6097

Airport Construction Stage 1B, Jet Fuel

          (307,500)

C6099

Airport Development - Project Expenses

            290,644

 

Subtotal

(7,950,910)

Main Roads

 

S0035

Strelly Street

          (248,182)

S0049

Layman Road

            194,745

S0064

Peel Terrace

          (508,548)

S0066

Queen Street

            (99,803)

S0067

Layman Road - Reconstruction Between 3250 and 6190

          (295,282)

S0068

Georgiana Molloy Bus Bay Facilities

          (149,610)

S0314

Koorabin Drive - Reseal

          (123,592)

 

Subtotal

(1,230,273)

Roads to Recovery

 

T0004

Chapman Hill Road

              29,701

T0016

Puzey Road

            (74,914)

T0078

Taylor Rd Gravel Resheet Slk 0.00 - 1.14

              25,726

T0079

Patton Terrace - Asphalt Overlay

         (132,125)

T0080

Craig Street - Asphalt Overlay

           (72,793)

T0084

Yelverton Road- Rural reconstruction & widening

         (123,115)

 

Subtotal

(347,520)

Council Roads Initiative

 

W0019

Marine Terrace

         (244,732)

W0066

Court Street

               2,599

W0108

Yelverton Road

         (472,180)

W0136

DAIP Issues District ACROD Bays, ramps, signs etc

             (8,940)

W0137

Edwards Road

            (75,997)

W0150

Roe Terrace Busselton

            (10,002)

W0176

Signage (Alternate CBD Entry)

            (30,000)

W0177

Strelly Street

            (29,790)

W0192

Valley Road

            (23,418)

W0198

Senior Citizens Access Road (Peel Tce)

              29,207

W0200

Farquhar Rd Gravel Resheet Slk 0.60 - 2.10

            (16,779)

W0201

McDonald Rd Gravel Resheet Slk 1.40 - 2.49

            (11,867)

W0202

Costello Road - Asphalt Overlay

              32,297

W0203

Coates Street - Asphalt Overlay

              17,946

W0204

Greenfield Road (Loop) - One way layout

            (26,720)

 

Subtotal

(894,626)

 

 

 

 

Sub-Total Infrastructure

(13,500,015)

 

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

 

 

 

 

Investment Report

 

Pursuant to the Council’s Investment Policy, a report is to be provided to the Council on a monthly basis, detailing the investment portfolio in terms of performance and counterparty percentage exposure of total portfolio. The report is also to provide details of investment income earned against budget, whilst confirming compliance of the portfolio with legislative and policy limits.

 

30 November 2017

 

As at 30 November 2017, the value of the City’s invested funds totalled $94.27M, down $1M from the balance as at 1st November.

 

During the month of November $10.5M in term deposit funds matured. Three deposits were renewed for an average of 130 days at an average rate of 2.44%. One deposit was closed for operational reasons.

 

The balance of the 11am account (an intermediary account which offers immediate access to the funds compared to the term deposits and a higher rate of return compared to the cheque account) increased by $3.5M due to the closure of a term deposit and funds being transferred in from the Foreshore account. The balance of the Airport development ANZ cash account reduced by $980,000.00, with the funds being transferred back to the City’s cheque account to reimburse payments made.

 

31 December 2017

 

As at 31 December 2017, the value of the City’s invested funds totalled $83.64M, down from $94.27M as at 30th November.

 

During the month of December $22.0M in term deposit funds matured, with $14.M relating to the Airport Redevelopment Project and $8.0M being general City funds.

 

Of the Airport Funds, only one deposit in the amount of $4.0m was rolled for a further 60 days at a rate of 1.85%. Deposits totalling $8.0m were closed to meet the expected expenses to be incurred over the coming months.

 

Of the $8.0M of general City funds, $3.5M was rolled for a further 120 days at 2.30% and a deposit totalling $4.5M was closed for operational reasons.

 

The balance of the 11am account (an intermediary account which offers immediate access to the funds compared to the term deposits and a higher rate of return compared to the cheque account) reduced by $2.5M with the funds being used for general operating purposes. The balance of the Airport development ANZ cash account increased by $6.37M, as funds flowed from closed term deposits.

 

The RBA left official rates on hold during November and December with projections for Rates to remain steady for some months before beginning to rise possibly at some stage late in 2018.

 

Chief Executive Officer – Corporate Credit Card

 

Details of monthly (October) transactions made on the Chief Executive Officer’s corporate credit card are provided below to ensure there is appropriate oversight and awareness of credit card transactions made.

 

 

Date

Amount

Payee

Description

29-Oct-17

$313.72

Rendezvous Hotel, Sydney

Accom. – Airport Meetings (27TH NOV 17)

13-Nov-17

$156.53

Perth Valet Parking

Airport Meetings

22-Nov-17

$55.00

Caltex, Halls Gap

* Fuel LGCOG Conference

24-Nov-17

$68.00

The Lorne Hotel

* Dinner LGCOG Conference

25-Nov-17

$49.86

BP Leopold

* Fuel For Hire Car

25-Nov-17

$507.42

Rydges On Swanston Carlton

Accomm: Airport Meetings 26 - 28 Nov

27-Nov-17

$52.50

Spotto East Sydney

Taxi - Airport Meetings 26-28 Nov

27-Nov-17

$313.72

Rendezvous Hotel Sydney The Rocks

Accomm: Airport Meetings 26 - 28 Nov

27-Nov-17

$303.49

Carri On Melbourne Tullamarine

Corporate Bag Business

27-Nov-17

$10.01

BP Exp The Tulla Melbourne Airport

* Fuel For Hire Car

27-Nov-17

$25.25

Endeavour Tap Rooms The Rocks

Drinks - Airport Meetings 26 - 28 Nov

27-Nov-17

$50.54

Rydges On Swanston Carlton

Parking - Airport Meetings 26 - 28 Nov

28-Nov-17

$47.78

Taxi Combined Alexandria

Taxi - Airport Meetings 26-28 Nov

28-Nov-17

$17.64

GM Cabs Pty Ltd Mascot

Taxi - Airport Meetings 26-28 Nov

28-Nov-17

$30.40

Phoenix On Walker North Sydney

Breakfast Airport Meetings 26 - 28 Nov

28-Nov-17

$19.43

GM Cabs Pty Ltd Mascot

Taxi - Airport Meetings 26-28 Nov

28-Nov-17

$15.75

GM Cabs Pty Ltd Mascot

Taxi - Airport Meetings 26-28 Nov

01-Dec-17

$101.88

The Goose

Staff Farewell

08-Dec-17

$97.60

Mealup Aka Hummingbird

Strategic Breakfast with SWDC

15-Dec-17

$169.00

The Haus Studio Apartments

Deposit Accom: LGCOG EA Alliance Meeting April '18

15-Dec-17

$511.50

EB*LG COG EA Meeting

LG COG EA Alliance Meeting Rego

14-Dec-17

$4,706.50

Rustico At Hayshed Hill

Councillors Christmas Function

20-Dec-17

$680.60

Trybooking

LG COG Conference 14-16 Feb

20-Dec-17

$54.61

Paypal - Stereotype

New Font for Graphics

20-Dec-17

$53.10

Bull & Bush Tavern, Boyanup

SW CEO’s Lunch

 

*Funds debited against CEO Annual Professional Development Allowance as per employment Contract Agreement

+ Allocated against CEO Hospitality Expenses Allowance

 

CONCLUSION

 

As at 31 December 2017, the City’s financial performance is considered satisfactory.

 

OFFICER RECOMMENDATION

 

That the Council receives the statutory financial activity statement reports for the periods ending 30 November 2017 and 31 December 2017, pursuant to Regulation 34(4) of the Local Government (Financial Management) Regulations.

 


Finance Committee

69

18 January 2018

6.5

Attachment a

FINACIAL ACTIVITY STATEMENT PERIOD ENDING 30 NOVEMBER 2017

 


 


 


 


 


 


 


 


 


 


 

 


 


 


Finance Committee

93

18 January 2018

6.5

Attachment b

FINANCIAL ACTIVITY STATEMENT PERIOD ENDING 31 DECEMBER 2017

 


 


 


 


 


 


 


 


 


 


 


 


 


Finance Committee

94

18 January 2018

6.5

Attachment c

INVESTMENT REPORT PERIOD ENDING 30 NOVEMBER 2017

 


Finance Committee

95

18 January 2018

6.5

Attachment d

INVESTMENT REPORT PERIOD ENDING 31 DECEMBER 2017

 


Finance Committee                                                             97                                                                18 January 2018

6.6             REVIEW OF POLICY 048 - LOANS

SUBJECT INDEX:

Policy

STRATEGIC OBJECTIVE:

Governance systems, process and practices are responsible, ethical and transparent.

BUSINESS UNIT:

Finance and Corporate Services

ACTIVITY UNIT:

Financial Services

REPORTING OFFICER:

Manager Financial Services - Kim Dolzadelli

AUTHORISING OFFICER:

Director, Finance and Corporate Services - Cliff Frewing

VOTING REQUIREMENT:

Simple Majority

ATTACHMENTS:

Attachment a   Council Policy 048 - Loans with Markup

Attachment b    Amended Council Policy 048 - Loans  

  

PRÉCIS

 

A review of Policy 048 – Loans has been undertaken and is presented for consideration of the Finance Committee for recommendation to Council.

 

BACKGROUND

 

Council Policy 048 – Loans was last reviewed in May 2015.  Officers have completed a review of the Policy with the main changes surrounding the setting of criteria for the requirement of information required for applications for Self Supporting Loans. Other minor changes have also been made to acknowledge the relevance of this Policy in regard to Long Term Financial Planning and also to changes to the Department of Local Government, Sport and Communities changes in respect to Financial Ratios.

 

STATUTORY ENVIRONMENT

 

In accordance with Section 2.7(2) (b) of the Local Government Act 1995, it is the role of the Council to determine the local government’s policies. The Council does this on the recommendation of a Committee it has established in accordance with Section 5.8 of that Act.

RELEVANT PLANS AND POLICIES

 

The Policy in question is already in existence, officers have reviewed the current Policy, last reviewed in May 2015.

 

FINANCIAL IMPLICATIONS

 

There are no Financial Implications associates with respect to the requested amendments to Policy 048 – Loans.

 

Long-term Financial Plan Implications

 

There are no Financial Implications associates with respect to the requested amendments to Policy 048 – Loans.

 

STRATEGIC COMMUNITY OBJECTIVES

 

This policy is consistent with fostering the following strategic objective:

 

Key Goal Area 6 - LEADERSHIP Visionary, collaborative, accountable

 

6.1          Governance systems, processes and practices are responsible, ethical and transparent.

 

RISK ASSESSMENT

 

The requested amendments to Council Policy 048 – Loans will reduce any possible risk with respect to the application for Self Supporting Loans.

 

CONSULTATION

 

Relevant officers within the City have been consulted.

 

OFFICER COMMENT

 

Officers have completed a review of the Policy with the main changes surrounding the setting of criteria for the requirement of information required for applications for Self Supporting Loans. Other minor changes have also been made to acknowledge the relevance of this Policy in regard to Long Term Financial Planning and also to changes to the Department of Local Government, Sport and Communities changes in respect to Financial Ratios.

 

CONCLUSION

 

The officer commends the amended Policy to the Finance Committee for referral to Council.

 

OPTIONS

 

Should the Committee not agree with the requested amendments it could recommend to Council:

 

1.    That the Policy remain unchanged,

2.    Recommend alternative amendments, or

3.    Recommend that the Policy be withdrawn.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

 

Changes to the Policy would be implemented immediately.

 

 

OFFICER RECOMMENDATION

 

That the Council approve/adopt amended Policy “048 – Loans” as attached (Attachment B) to this Agenda.

 


Finance Committee

100

18 January 2018

6.6

Attachment a

Council Policy 048 - Loans with Markup

 


 


 


Finance Committee

102

18 January 2018

6.6

Attachment b

Amended Council Policy 048 - Loans

 


 


Finance Committee                                                             105                                                             18 January 2018

6.7             BUDGET AMENDMENT REQUEST

SUBJECT INDEX:

Budget Planning and Reporting

STRATEGIC OBJECTIVE:

Governance systems, process and practices are responsible, ethical and transparent.

BUSINESS UNIT:

Finance and Corporate Services

ACTIVITY UNIT:

Finance and Corporate Services

REPORTING OFFICER:

Manager Financial Services - Kim Dolzadelli

AUTHORISING OFFICER:

Director, Finance and Corporate Services - Cliff Frewing

VOTING REQUIREMENT:

Absolute Majority

ATTACHMENTS:

Nil

  

PRÉCIS

 

This report seeks recommendation of the Finance Committee to Council for the approval of budget amendments as detailed in this report.  Adoption of the Officers recommendation will result in no change to the City’s current Amended Budgeted Surplus Position of $0.

 

BACKGROUND

 

Council adopted its 2017/2018 Municipal Budget on Wednesday, 26 July 2017 with a balanced Budget position.

 

Since this time Council has been advised of certain funding changes that have impacted the original Budget and Council is now being asked to consider Budget Amendments for the following Key Areas/Projects:

 

1.    “Shared Path/Footpath Projects”

 

BACKGROUND

The City has been presented with a Western Australian Bicycle Network grant offer for the construction of a Shared Path along College Avenue, Busselton.  This Shared Path will provide a strategic north-south connection between the Busselton Bypass and the Busselton LIA & CBD.  The WABN grant requires matching funding of $190,000.

 

The City has pre-committed funding from the WABN grants for 2018/19 therefore this project would not normally be funded until 2019/20 or later. It is proposed to bring forward the construction of the footpath project largely by using funds allocated to the construction of a footpath in Dunsborough Lakes Drive as there are delays in gaining approvals to commence this project as well as other works identified in the table below.

 

PLANNED EXPENDITURE ITEMS

The College Avenue Shared Path has been developed internally with consultation with adjacent property owners underway. Notwithstanding the potential outcomes of this consultation this project is ready for issue to the Works division and is construction ready. There are no foreseeable matters that would hinder delivery and grant acquittal by Mid-June 2018.

 

Officers propose that the 2017/2018 Adopted Budget be amended to reflect the following funding changes, shown in Table 1.

 

 

 

 

 

Table 1:

Cost Code

Description

Current Budget

Change

Proposed Amended Budget

F0063

Yallingup Footpaths

(31,195)

31,195

0

F0035

Dunsborough Lakes Drive to NCC

(152,000)

145,000

(7,000)

F0075

Armitage Drive Footpath - Navigation Way to Avocet Boulevard

-(60,000)

13,805

(46,195)

”New”

College Avenue Shared Path

0

(380,000)

(380,000)

WABN Grant “New”

WABN Grant Income

190,000

190,000

190,000

Total

(243,195)

0

(243,195)

 

PROPOSED OUTCOME

The acceptance for the grant for the construction of the College Avenue Shared Path would ensure that the north-south strategic connection is cofounded and delivered in a timely manner and it is proposed that the projects that funding is being reallocated from be relisted as priority projects in the 2019 budget.

 

2.    “Drainage Project Amendments”

 

BACKGROUND

Johnston Avenue Drainage project

The construction of the proposed drainage infrastructure in Yallingup will be delayed due to the approvals required from the Department of Aboriginal Affairs associated with working within a listed heritage site. It is proposed to bring forward stage 2 of the Johnston Avenue Drainage project whilst the required consultation is undertaken and approvals gained for the Yallingup works.

 

Vasse Highway Drainage upgrade project

The Vasse Highway Drainage upgrade project is a drainage upgrade for the Vasse Townsite to reduce the ongoing ponding of water adjacent to the roadway through Water Sensitive Urban Design (WSUD) techniques. During the delivery of this project a significant amount of unsuitable material was identified requiring additional excavation and earthworks, this resulted in an increase in the quantity of replacement modified filtration medium. Due to this increase excavation additional pipework was included to reduce the potential risk to surrounding infrastructure hence an increase to Budget is required.

 

PLANNED EXPENDITURE ITEMS

Johnston Avenue Drainage project

Stage 2 of the Johnston Avenue drainage has been designed and document with all consultation being finalised. This project is ready for issue to the Works division and is construction ready. This project can be fully delivered this financial year.

 

Vasse Highway Drainage upgrade project

This project is currently under construction.

 

The following amendments shown below in Table 2 are being sought for approval.

 

Table 2:

Cost Code

Description

Current Budget

Change

Proposed Amended Budget

D0015

Valley Road Drainage upgrade

(258,010)

250,000

(8,010)

D0017

Vasse Highway Drainage Works

(25,000)

(30,000)

(55,000)

D0018

Johnston Avenue Drainage upgrade – Stage 2

0

(220,000)

(220,000)

Total

(283,010)

0

(283,010)

 

 

PROPOSED OUTCOME

Johnston Avenue Drainage project

The proposed amendment for stage 2 of Johnston Avenue Drainage would ensure that this project is finalised and the risk of property flooding and future inundation of Bussell Highway in this area is addressed prior to the 2018 winter.

 

Vasse Highway Drainage upgrade project

Completion of this project to an appropriate standard.

 

STATUTORY ENVIRONMENT

 

Section 6.8 of the Local Government Act refers to expenditure from the municipal fund that is not included in the annual budget. In the context of this report, where no budget allocation exists, expenditure is not to be incurred until such time as it is authorised in advance, by an absolute majority decision of the Council.

 

RELEVANT PLANS AND POLICIES

 

There are multiple Plans and Policies that support the proposed Budget Amendments.

 

FINANCIAL IMPLICATIONS

 

Budget amendments being sought will result in no change to Council’s Budget Surplus position of $0. 

 

Long-term Financial Plan Implications

N/A

 

STRATEGIC COMMUNITY OBJECTIVES

 

This matter principally aligns with Key Goal Area 6 – ‘Open and Collaborative Leadership’ and more specifically Community Objective 6.1 - ‘Governance systems, process and practices are responsible, ethical and transparent’. 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

 

There is a risk to the City, as there is with all projects undertaken, that the final cost could exceed budget. If this looks to be the case Council will be notified so a suitable offset / project scope back can be identified.

 

CONSULTATION

 

Consultation has occurred with the appropriate City of Busselton officers.

 

OFFICER COMMENT

 

The Officer commends the requested Budget Amendment to the Finance Committee for consideration and recommendation to Council.

 

 

 

 

 

CONCLUSION

 

Council’s approval is sought to amend the budget as per the details contained in this report. Upon approval the proposed works will be planned, organised and completed.

 

OPTIONS

 

The Council could decide not to go ahead with any or all of the proposed budget amendment requests.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

 

Should the Officer Recommendation be endorsed, the associated budget amendment will be processed within a month of being approved.

 

OFFICER RECOMMENDATION

ABSOLUTE MAJORITY DECISION OF COUNCIL REQUIRED

 

That the Finance Committee recommends to Council endorsement of the Requested Budget Amendments contained within this report, resulting in no change to an Amended Budgeted Surplus Position of $0.

  


Finance Committee                                                             107                                                             18 January 2018

7.               General Discussion Items 

7.1             Holiday Homes

7.2             Review of Calculation Basis for Rate Calculations – Yallingup

7.3             Contributions to works – Funds Held   

8.               Next Meeting Date

                   Thursday, 15 February 2018

9.               Closure