Finance Committee                                                             1                                                                     15 March 2018

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VARIOUS FORMATS ON REQUEST
city@busselton.wa.gov.au


Please note:  These minutes are yet to be confirmed as a true record of proceedings

CITY OF BUSSELTON

MINUTES FOR THE Finance Committee MEETING HELD ON 15 March 2018

TABLE OF CONTENTS

ITEM NO.                                        SUBJECT                                                                                                                              PAGE NO.

1....... Declaration of Opening and Announcement of Visitors. 2

2....... Attendance. 2

3....... Public Question Time. 2

4....... Disclosure Of Interests. 2

5....... Confirmation Of Minutes. 2

5.1          Minutes of the Finance Committee Meeting held 15 February 2018. 2

6....... Reports. 3

6.1          DONATIONS/CONTRIBUTIONS AND SUBSIDIES FUND - FEBRUARY 2018. 3

6.2          FINANCIAL ACTIVITY STATEMENTS INCORPORATING BUDGET REVIEW - PERIOD ENDING 28 FEBRUARY 2018. 6

6.3          LIST OF PAYMENTS MADE FEBRUARY 2018. 19

7....... General Discussion Items. 21

8....... Next Meeting Date. 21

9....... Closure. 21

 


MINUTES

 

MINUTES OF A MEETING OF THE Finance Committee HELD IN the Committee Room, Administration Building, Southern Drive, Busselton, ON 15 March 2018 AT 9.30am.

 

1.               Declaration of Opening and Announcement of Visitors

The Presiding Member opened the meeting at 9.35am.

2.               Attendance 

Presiding Member:

 

Members:

 

Cr Paul Carter

 

 

Cr Grant Henley     Mayor

Cr John McCallum     Deputy Mayor

Cr Robert Reekie

 

Officers:

 

Mr Tony Nottle, Director, Finance and Corporate Services

Mr Kim Dolzadelli, Manager, Financial Services

Mrs Katie Banks, Executive Assistant to Council

 

Apologies

 

Cr Coralie Tarbotton

 

Approved Leave of Absence

 

Nil

3.               Public Question Time  

Nil

4.               Disclosure Of Interests

Nil

5.               Confirmation Of Minutes

5.1             Minutes of the Finance Committee Meeting held 15 February 2018

COMMITTEE DECISION

F1803/020               Moved Councillor R Reekie, seconded Councillor G Henley

That the Minutes of the Finance Committee Meeting held 15 February 2018 be confirmed as a true and correct record.

CARRIED 4/0

 


Finance Committee                                                             5                                                                     15 March 2018

6.               Reports

6.1             DONATIONS/CONTRIBUTIONS AND SUBSIDIES FUND - FEBRUARY 2018

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 $13,953.69

 

·    Current Balance Available is $26,046.31

 

·    In February 2018 there were 9 applications received for sponsorship totaling $2,305.00

(0 applications were processed in January 2018)

 

·    The balance available for future donations is $23,741.31

 

App. No.

Recipient

Purpose

Amount

61/1718

Apex Club of Busselton

The APEX Geo Bay bike ride is being held on 25 March 2018. Funds requested to assist with the promotion of the event and the cost of catering for the free community sausage sizzle being held on Dunsborough.

$500.00

62/1718

WA Rover Owners Assoc. Club SW Branch

Funds requested to assist with covering the cost of new signage, prizes for raffles and advertising for the British Auto Classic 2018 being held at Signal Park 24 March 2018. 

$500.00

63/1718

Western Edge Performance Writers

Funds requested to assist with running the South West Shorts 2018 rehearsed play reading competition (free of charge event) being held on 11 March. Approved contribution amount will cover the cost to hire a PA system for the event.

$305.00

64/1718

Deborah Westell

Funds requested to cover the cost of a sausage sizzle for volunteers involved in ‘Clean-up Kealy Estate’ on 25 February 2018. Application does not meet the guidelines relating to events –i.e. not organised by a non-profit group.

(Recommendation was made for the applicant to contact the Hanson Property Group to seek their support of the event)

$0.00

65/1718

Busselton Old Time Dance Inc.

Seeking funds to assist with costs associated with hosting the South West Dance festival on 6 April 2018 at the Busselton Youth Centre e.g. hall hire, decorations and a license to play music.

$250.00

66/1718

Dunsborough Bay Yacht Club (DBYC)

Funds requested to assist with covering costs associated with running the State Minnow Sailing Championship 3 day regatta on 3-5 March 2018. Funds to contribute towards the cost of race equipment and fuel for safety and support boats.

$500.00

67/1718

Gail Kearney Memorial  Busselton Hospice Golf Day

Seeking funds to assist with covering the cost of running the event i.e. catering.

Although the City has provided funding towards this event in the past, participants are required to pay for their event entry - $500 per 4 person team. Therefore, the application does not meet the funding guidelines. Also, Busselton Hospice Inc. received a donation from this fund in December 2017.

 

$0.00

68/1718

South West Women’s Health

Seeking funds as a 'transport subsidy' to enable up to 50 female Busselton residents to attend an international Women's day symposium held at the Bunbury Regional Entertainment Centre. Not supported as $400 of funding was already received by SW Women’s health to assist with promoting the Big Pram walk held in November 2017 at the Busselton Foreshore.

$0.00

69/1718

Busselton Choral Society

The Choral Society are seeking funds to assist with covering the cost of running their Winter Concert 2018. The funds to contribute towards the cost to hire the venue, pianist and conductor.

$250.00

 

 

 

 

 

 

 

COMMITTEE RECOMMENDATION AND OFFICER RECOMMENDATION

F1803/021               Moved Councillor J McCallum, seconded Councillor R Reekie

 

That the donations and sponsorships for the month of February 2018 be noted.

CARRIED 4/0

 


Finance Committee                                                             8                                                                     15 March 2018

6.2             FINANCIAL ACTIVITY STATEMENTS INCORPORATING BUDGET REVIEW - PERIOD ENDING 28 FEBRUARY 2018

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  - Tony Nottle

VOTING REQUIREMENT:

Absolute Majority

ATTACHMENTS:

Attachment a   FINANCIAL ACTIVITY STATEMENTS INCORPORATING BUDGET REVIEW - PERIOD ENDING 28 FEBRUARY 2018

Attachment b    INVESTMENT REPORT PERIOD ENDING 28 FEBRUARY 2018  

  

PRÉCIS

 

Financial Activity Statements

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 28 February 2018.

 

Review of Budget

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.

 

BACKGROUND

 

Financial Activity Statements

 

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.”

 

Review of Budget

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.

 

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.

 

This report, based on the City’s financial performance for the period ending 28 February 2018, 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.

 

STATUTORY ENVIRONMENT

 

Financial Activity Statements

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.

 

Review of Budget

33A.       Review of budget

        (1)      Between 1 January and 31 March in each financial year a local government is to carry out a review of its annual budget for that year.

     (2A)      The review of an annual budget for a financial year must —

                        (a)      consider the local government’s financial performance in the period beginning on 1 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 that financial year that are forecast in the budget.

        (2)      Within 30 days after a review of the annual budget of a local government is carried out it is to be submitted to the council.

        (3)      A council is to consider a review submitted to it and is to determine* whether or not to adopt the review, any parts of the review or any recommendations made in the review.

                   *Absolute majority required.

        (4)      Within 30 days after a council has made a determination, a copy of the review and determination is to be provided to the Department.

 

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 28 FEBRUARY 2018

 

The Statement of Financial Activity for the period ending 28 February 2018 shows a better than expected Net Current Position (Surplus) of $12.43M being $12.14M 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

2017/18
YTD Bud Variance

2017/18
YTD Bud
Variance

 

$

$

$

%

$

Revenue from Ordinary Activities

61,839,705

61,166,898

66,421,049

1.10%

672,807

Expenses from Ordinary Activities

(44,408,843)

(46,664,069)

(68,754,825)

4.83%

2,255,226

 

 

Non-Operating Grants, Subsidies and Contributions

8,054,150

17,527,484

43,655,339

-54.05%

(9,473,334)

Profit on Asset Disposals

48,793

16,100

22,400

203.06%

32,693

Loss on Asset Disposals

(491,549)

(5,250)

(6,252)

-9262.84%

(486,299)

 

 

Capital Revenue & (Expenditure)

 

Land & Buildings

(3,569,057)

(12,945,284)

(16,556,693)

72.43%

9,376,227

Plant & Equipment

(1,141,827)

(2,758,236)

(4,279,400)

58.60%

1,616,409

Furniture & Equipment

(381,959)

(665,982)

(830,212)

42.65%

284,023

Infrastructure

(25,242,797)

(38,233,968)

(60,684,321)

33.98%

12,991,171

Proceeds from Sale of Assets

283,593

372,850

635,150

-23.94%

(89,257)

Proceeds from New Loans

110,000

10,110,000

10,110,000

-98.91%

(10,000,000)

Advances to Community Groups

(110,000)

(260,000)

(260,000)

57.69%

150,000

Transfer to Restricted Assets

(1,850,761)

(411,501)

(625,751)

-349.76%

(1,439,260)

Transfer from Restricted Assets

13,199,259

11,354,556

27,808,739

16.25%

1,844,703

Transfer to Reserves

(9,243,826)

(11,543,652)

(16,285,572)

19.92%

2,299,826

Transfer from Reserves

2,055,406

1,146,659

19,921,964

79.25%

908,747

 

Operating Revenue:

Revenue from ordinary activities is $672K 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

342,103

274,573

426,167

24.59%

67,530

Interest Earnings

1,805,563

1,508,664

2,262,996

19.68%

296,899

 

The items predominately impacting the above “Other Revenue” performance is CLAG (Contiguous Local Authority Group) Funding in the amount of $48K, this item is to be transferred to Trust and Sale of Scrap Materials $44K.

 

Interest earnings on Reserves and Restricted funds are currently ahead of YTD Budget in the amount of $234k with $84k in Rate Instalment interest currently ahead of YTD Budget, this second item is a timing difference only and it is also expect that Interest earnings on Reserves and Restricted funds will reduce in the coming months as funds are further drawn down to finance Capital projects contained within the City’s 2017/2018 Budget.

 

The Officer notes that the above positive performance of “Other Revenue” and “Interest Earnings” is added to by a positive collective performance of $308k for Rates, Operating Grants and Subsidies, and Fees and Charges; these items fall below the Material Variance reporting thresholds.  The above variations are considered to be that of a timing difference at this stage of the Budget Year with the exception of Rate Revenue which is expected to be a permanent variation.  This permanent variation is expected to be in the vicinity of $300k.

 

 

 

In summary, net operating revenue is projected to be slightly higher than the annual budget estimates with a projected favourable variance of approximately $350K. 

 

Operating Expenditure:

 

Expenditure from ordinary activities is $2.25M 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

(9,630,094)

(11,292,985)

(16,914,999)

14.72%

1,662,891

Utilities (Gas, Electricity, Water etc)

(1,595,705)

(1,721,053)

(2,580,822)

7.28%

125,348

Allocations

1,057,434

1,193,962

1,996,270

11.43%

(136,528)

 

Materials and Contracts:

The main items affected are listed below, at this stage the majority of these variances are considered to be that of a timing nature with an expectation that there will be offsets for under and over expenditure items resulting in a better than expected result at year end:

 

Cost Code

Cost Code Description / GL Activity

YTD Variance

Finance and Corporate Services 

 

10251

Business Systems

164,791

 

Subtotal

164,791

Community and Commercial Services 

 

10591

Geographe Leisure Centre

64,189

10600

Busselton Jetty Tourist Park

59,421

10635

Regional Centres Program

80,000

10900

Cultural Planning

30,531

11151

Airport Operations

(35,987)

 

Subtotal

198,153

Planning and Development Services 

 

10820

Strategic Planning

122,224

10830

Environmental Management Administration

59,007

10850

Implement Management Plans Other

31,222

10925

Preventative Services - CLAG

63,996

11170

Meelup Regional Park

72,530

 

Subtotal

348,979

Engineering and Works Services

 

11101

Engineering Services Administration

78,727

11106

Street Lighting Installations

94,826

11108

Rural Intersection (Lighting) Compliance

30,000

11160

Busselton Jetty

372,101

12600

Street & Drain Cleaning

27,419

A6004

Pedestrian Bridge (Port Geographe)

60,000

A9999

Miscellaneous Bridge Maintenance

85,615

B1000

Administration Building- 2-16 Southern Drive

(46,861)

B1450

Depot Building-Busselton

(33,035)

B1514

Asbestos Removal & Replacement

50,000

C8500

Cycleways Maintenance Busselton

(29,192)

G0010

Domestic Recycling Collections

117,984

G0030

Busselton Transfer Station

62,102

G0031

Dunsborough Waste Facility

25,266

G0032

Rubbish Sites Development

62,534

G0042

BTS External Restoration Works

148,474

M9999

Road Maintenance - consolidated

(148,219)

R0004

Bsn Foreshore Precinct (not including Skate Park)

(117,972)

R0008

Dunn Bay Road-Surrounds

(26,633)

R0269

Seymour Park (Dunn Bay/Lorna St Pos)

(28,877)

R0700

Dunsborough Oval and Skate Park

(49,268)

R0850

Streetscape Medians & Trees (Kealy)

(40,261)

 

Subtotal

694,731

 

5280

Transport - Fleet Management

121,790

 

Subtotal

121,790

 

 

399 Cost Codes under Reporting Threshold

134,446

Subtotal

134,446

 

Total

1,662,891

 

Utilities:

With over 364 individual accounts at a better than expected result of $1.59M, a favourable position of $125K is considered likely to be a timing difference at this stage of the reporting year with the one exception being the City’s Administration Building which is currently tracking $37k below YTD Budget; the officer further notes that no account has yet been received for the month of February which for this facility which would see this variance reduced to $29k.  The officer further notes that whilst utilities for the City Administration Building are tracking below expectation savings on this cost will be need to offset other costs related to the facility, specifically contract cleaning.

 

Allocations:

Allocations are running $136k under YTD Budget; these items are an internal allocation of administrative costs from the Finance and Corporate Services division and will not impact on the City’s final surplus/deficit position.

 

The Officer notes that the above positive performance of “Materials and Contracts” and “Utilities” is added to by a positive collective performance of “Employee Costs” and “Insurance Expenses”; these items fall below the Material Variance reporting thresholds.

 

In summary, net operating expenditure is projected to be slightly lower than the annual budget estimates with a projected favourable variance of approximately $400K.

 

Non-Operating Grants, Subsidies and Contributions:

Non-Operating Grants, Subsidies and Contributions are less than YTD Budget by $9.47M with the main item impacting on the above result is the timing of the receipt of “Airport Development - Project Grant” with a current negative result of $8.44M with the remainder being represented by Road Project Grants; this is a timing difference in nature only and is offset with the level of current expenditure for these projects.

 

 

Capital Expenditure

As at 28 February 2018, there is a variance of -44.44% or -$24.27M in total capital expenditure with YTD Actual at -$30.35M against a YTD Budget of -$54.6M; with the table below showing those categories exceeding the 10% material variance threshold.   The Airport Development makes up for $11.31M or 46.6% 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

 

Property Services Administration

(50,000)

Parking Control

(1,525,000)

Dunsborough - Commonage Road Oval

(1,600,000)

Total

(3,175,000)

 

 

Buildings

 

Major Project - Administration Building

 

Civic and Administration Centre Construction

(159,783)

Total

(159,783)

 

 

Buildings (Other)

 

Ambergate Bushfire Brigade Shed

(82,208)

Aged Housing Capital Improvements - Winderlup Court (City)

(26,664)

GLC - Pool Relining

(159,785)

GLC - Plant Room

(70,915)

Performing Arts Convention Centre

(50,000)

Vasse Community Recreation Precinct

31,451

Airport Terminal Stage 2

(5,550,501)

Bsn Jetty Tourist Park Home

(127,186)

Total

(6,035,807)

 

 

Plant & Equipment

 

Finance & Corporate Services Support

49,161

Community & Commercial Services Support

(50,000)

Geographe Leisure Centre

36,308

Property Services Administration

(35,000)

Animal Control

(60,872)

Engineering Services Design

(35,000)

Transport - Workshop

(43,278)

Plant Purchases (P10)

(1,313,344)

Plant Purchases (P11)

(73,812)

Plant Purchases (P12)

(89,497)

Total

(1,615,334)

 

 

Furniture & Office Equipment

 

Information & Communication Technology Services

35,203

Business Systems

(98,262)

Administration Building- 2-16 Southern Drive

(83,250)

YCAB (Youth Precinct Foreshore)

(37,909)

Total

(184,218)

 

 

Description

2017/18 Budget YTD Variance

 

$

Major Project - Busselton Foreshore

 

Busselton Foreshore - Stage 3

826,186

Busselton Tennis Club - Infrastructure

(1,717,841)

Busselton Foreshore Stage 3: Toddler's Playground

(96,899)

Busselton Foreshore Jetty Precinct

(301,471)

Barnard Park Pavillion Landscaping

60,235

Total

(1,229,790)

 

 

Major Project - Administration Building

 

Administration Building Carpark

(100,995)

Total

(100,995)

 

 

Footpaths Construction

 

Bussell Highway Footpath Sections

(259,880)

Milward Street – Ford Road to Cookworthy Street

(37,023)

Armitage Drive Footpath - Navigation Way to Avocet Boulevard

(30,083)

Vasse Bypass Road Footpath

(41,564)

Total

(368,550)

 

 

Drainage Construction - Street

 

Vasse Highway Drainage Works

25,593

Chain Avenue - Drainage Works

(35,703)

Johnston Avenue Drainage Upgrade - Stage 2

(44,000)

Total

(54,110)

 

 

Bridges Construction

 

Queen Street Bridge 0240A

96,000

Total

96,000

 

 

Cycleways Construction

 

Busselton Bypass - Country Road Footpath

(144,170)

College Avenue Shared Path

(65,800)

Total

(209,970)

 

 

Townscape Construction

 

 

 

Queen Street Upgrade - Duchess to Kent Street

(81,114)

Dunsborough Road Access Improvements Stage 1

(384,602)

Total

(465,716)

 

 

Boat Ramps Construction

 

Port Geographe Boat Trailer Parking Layout Redevelopment

(96,551)

Total

(96,551)

 

 

 

Description

2017/18 Budget YTD Variance

 

$

Beach Restoration

 

Sand Re-Nourishment

41,776

Total

41,776

 

 

Parks, Gardens & Reserves

 

Rails to Trails

(93,760)

Elijah Circle POS

(26,644)

Vasse Community & Recreation Precinct - AFL Oval Stage 1

(29,285)

Dunsborough Town Centre

(59,149)

Administration Building Landscaping Works

224,235

Port Geographe  - Burgee Close (Western Side of Bridge)

(62,971)

Port Geographe  - Reticulated POS at Layman Rd R/About

(166,229)

Port Geographe  - Reticulation Upgrade Scheme to Bore Water

(223,908)

Foreshore - Irrigation Renewal

(40,292)

Vasse River Foreshore - Bridge to Bridge project Stage 1

(48,034)

Advanced Bore Monitoring Equipment

(66,664)

Vasse Newtown - AFL Oval Stage 2

64,108

Total

(528,592)

 

 

Sanitation Infrastructure

 

New Cell Development

(345,815)

Transfer Station Development

(32,504)

Site Rehabilitation - Busselton

(452,141)

Total

(830,460)

 

 

Airport Development

 

Airport Construction Stage 2, Landside Civils & Services Inf

(4,184,987)

Airport Construction Stage 2, Noise Management Plan

(220,395)

Airport Construction Stage 2, Airfield

308,870

Airport Construction Stage 2, External Services

(1,576,566)

Airport Construction Stage 1B, Jet Fuel

(410,000)

Airport Development - Project Expenses

(205,865)

Total

(6,288,943)

 

 

Main Roads

 

Strelly Street

(334,154)

Layman Road

84,968

Peel Terrace

(688,566)

Queen Street

(141,236)

Layman Road - Reconstruction Between 3250 and 6190

(341,549)

Georgiana Molloy Bus Bay Facilities

(199,610)

Koorabin Drive - Reseal

(166,839)

Total

(1,786,984)

 

 

 

 

 

Description

2017/18 Budget YTD Variance

 

$

Roads to Recovery

 

Patton Terrace - Asphalt Overlay

(167,988)

Craig Street - Asphalt Overlay

80,351

Total

(87,637)

 

 

Council Roads Initiative

 

Marine Terrace

(325,985)

Yelverton Road

(364,697)

Edwards Road

(102,562)

Signage (Alternate CBD Entry)

(37,605)

Strelly Street

(39,789)

Valley Road

(31,224)

Greenfield Road (Loop) - One way layout

(36,436)

Total

(938,298)

 

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

 

The majority of capital expenditure variances are considered to be timing at this time, with no impact expected against the net current position. 

 

In summary, net Capital Expenditure is not projected to have any material impact on the City’s project surplus/deficit position when Carryover of projects occurs at year end if/where required.

 

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.

 

As at 28 February 2018, the value of the City’s invested funds totalled $82.99M, down from $83.69M as at 31st January.

 

During the month of February seven term deposits held with 5 different institutions totalling $20.5M matured, with $7.00M relating to the Airport Redevelopment Project and $13.5M being general City funds.

 

Of the $13.5M of general City funds, $13.5M was rolled for a further 96 days at 2.39% (on average).

 

Of the $7.00M of Airport Redevelopment Project funds, $7.00M was rolled for a further 59 days at 2.06% (on average). The need to keep the term of the deposit to only 2 months to meet expected expenditure timelines affected the rate of return able to be achieved. 

 

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 $0.75M due to the inflow of rate and grant funding. The balance of the Airport Development ANZ cash account decreased by $1.45M, with funds being drawn down to meet ongoing expenditure.

The RBA left official rates on hold during January and February 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 (February) 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

02-Feb-18

$583.62

Travel Insurance

* Travel Insurance (M Archer & K Sullivan)

06-Feb-18

$143.30

Trybooking

* LGCOG Dinner

10-Feb-18

$87.00

Newtown Lodge Vasse

Sugito Dinner

15-Feb-18

$11.00

Dradgin Pty Ltd Perth

Parking - Airport Meeting

 

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

+ Allocated against CEO Hospitality Expenses Allowance

 

CONCLUSION

 

As detailed within this report, it is considered that the City’s overall financial performance to 28 February 2018 is satisfactory.  Current projections indicate a potential surplus closing position as at 30 June 2018, in the order of approximately +$750k (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 2018.      

 

Whilst components of the unspent capital and operating expenditure budgets may need to be considered for re-listing in the Council’s 2018/19 draft budget, the current projected surplus closing position of $750K 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 2018/19 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.


 

 

 

COMMITTEE RECOMMENDATION AND OFFICER RECOMMENDATION 1

F1803/022               Moved Councillor J McCallum, seconded Councillor G Henley

 

That the Council receives the statutory financial activity statement reports for the period ending 28 February 2018, pursuant to Regulation 34(4) of the Local Government (Financial Management) Regulations.

CARRIED 4/0

 

COMMITTEE RECOMMENDATION AND OFFICER RECOMMENDATION 2

                F1803/023           Moved Councillor G Henley, seconded Councillor R Reekie]

 

ABSOLUTE MAJORITY DECISION OF COUNCIL REQUIRED

 

That, pursuant to Regulation 33A of the Local Government (Financial Management) Regulations, the Council adopts the 2017/18 Annual Budget Review as presented within this report.

CARRIED 4/0

 


Finance Committee                                                             20                                                                  15 March 2018

6.3             LIST OF PAYMENTS MADE FEBRUARY 2018

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  - Tony Nottle

VOTING REQUIREMENT:

Simple Majority

ATTACHMENTS:

Attachment a   LIST OF PAYMENTS MADE FEBRUARY 2018  

  

PRÉCIS

This report provides details of payments made from the City’s bank accounts for the month of February 2018, 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.

 

Long-term Financial Plan Implications

 

STRATEGIC COMMUNITY OBJECTIVES

 

NA.

 

RISK ASSESSMENT

 

NA.

 

CONSULTATION

 

NA.

 

OFFICER COMMENT

 

In accordance with regular custom, the list of payments made for the month of February 2018 is presented for information.

CONCLUSION

 

NA.

 

OPTIONS

 

NA.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

 

NA.

 

COMMITTEE RECOMMENDATION AND OFFICER RECOMMENDATION

F1803/024               Moved Councillor J McCallum, seconded Councillor G Henley

 

That the Council notes payment of voucher numbers M115289 – M115358, EF056922 – EF05740, T007384 – T007386, and DD003371 – DD003393; together totalling $10,107,235.29.

CARRIED 4/0

  


Finance Committee                                                             21                                                                  15 March 2018

7.               General Discussion Items 

Following consideration of Item 6.3  (List of Payments Made February 2018) the Members of the Committee requested that officers investigate the ability to provide a separate payment summary listing, which would be utilised for internal purposes only, that would include post code information with respect to each payment which would result in members being more easily able to identify local purchases.

8.               Next Meeting Date

Thursday, 19 April 2018

9.               Closure

The meeting closed at 10.40am.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

THESE MINUTES CONSISTING OF PAGES 1 TO 21 WERE CONFIRMED AS A TRUE AND CORRECT RECORD ON Thursday, 19 April 2018.

 

 

DATE:_________________              PRESIDING MEMBER:_________________________