COB-RGB

 

 

 

 

 

Finance Committee Agenda

 

 

 

15 November 2018

 

 

 

 

 


ALL INFORMATION AVAILABLE IN VARIOUS FORMATS ON REQUEST

city@busselton.wa.gov.au

 

 


CITY OF BUSSELTON

MEETING NOTICE AND AGENDA – 15 November 2018

 

 

 

TO:                  THE MAYOR AND COUNCILLORS

 

 

NOTICE is given that a meeting of the Finance Committee will be held in the Committee Room, Administration Building, Southern Drive, Busselton on Thursday, 15 November 2018, commencing at 9.30am.

 

The attendance of Committee Members is respectfully requested.

 

 

DISCLAIMER

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

 

8 November 2018


CITY OF BUSSELTON

Agenda FOR THE Finance Committee MEETING TO BE HELD ON 15 November 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 18 October 2018. 4

6....... Reports. 5

6.1          FINANCIAL ACTIVITY STATEMENTS - PERIOD ENDING 31 OCTOBER 2018. 5

6.2          LIST OF PAYMENTS MADE OCTOBER 2018. 38

6.3          BUDGET AMENDMENT REQUEST / REVIEW... 60

7....... General Discussion Items. 67

8....... Next Meeting Date. 67

9....... Closure. 67

 


Finance Committee                                                             4                                                            15 November 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 18 October 2018

Recommendation

That the Minutes of the Finance Committee Meeting held 18 October 2018 be confirmed as a true and correct record.

 


Finance Committee                                                             6                                                            15 November 2018

6.               Reports

6.1             FINANCIAL ACTIVITY STATEMENTS - PERIOD ENDING 31 OCTOBER 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:

Simple Majority

ATTACHMENTS:

Attachment a   Statement of Financial Activity - Period Ending 31 October 2018

Attachment b    Investment Report - Period Ending 31 October 2018  

  

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 31 October 2018.

 

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 25 July 2018, the Council adopted (C1807/138) the following material variance reporting threshold for the 2018/19 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 2018/19 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 – ‘Leadership’ and more specifically Community Objective 6.1 - ‘Governance systems, process and practices are responsible, ethical and transparent’.

 

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 here to:

 

§   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 OCTOBER 2019

 

The Statement of Financial Activity for the period ending 31 October 2018 shows a better than expected Net Current Position “Surplus” of $35.826M being $93.879M higher than year to date budget (YTD budget) of $25.951M.

 

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

 

Description

2018/2019
Actual

2018/2019
Amended
Budget YTD

2018/2019
Amended
Budget

2018/19
YTD Bud
Variance

2018/19
YTD Bud
Variance

 

$

$

$

%

$

Revenue from Ordinary Activities

 

 

 

 

 

Operating Grants, Subsidies and Contributions

1,142,163

898,249

3,958,925

27.15%

243,914

Other Revenue

442,456

107,615

337,740

311.15%

334,841

Interest Earnings

863,837

683,424

2,283,760

26.40%

180,413

 

 

 

 

 

 

Expenses from Ordinary Activities

 

 

 

 

 

Materials & Contracts

(4,430,590)

(6,178,445)

(18,833,959)

28.29%

1,747,855

Utilities (Gas, Electricity, Water etc)

(737,697)

(856,129)

(2,569,240)

13.83%

118,432

Depreciation on non current assets

(7,433,425)

(6,472,786)

(19,070,922)

-14.84%

(960,639)

Insurance Expenses

(712,563)

(576,357)

(698,808)

-23.63%

(136,206)

Other Expenditure

(828,122)

(1,513,508)

(4,819,009)

45.28%

685,386

Allocations

424,450

567,535

1,723,162

25.21%

(143,085)

 

 

 

 

 

 

Borrowings Cost Expense

 

 

 

 

 

Interest Expenses

(361,589)

(401,291)

(1,374,387)

9.89%

39,702

 

 

 

 

 

 

Non-Operating Grants, Subsidies and Contributions

1,614,638

4,741,643

32,402,981

-65.95%

(3,127,005)

 

 

 

 

 

 

Adjustments for Non-cash Revenue & Expenditure

 

 

 

 

 

Depreciation

7,433,425

6,472,786

19,070,922

14.8%

960,639

Donated Assets

(42,000)

(5,000)

(8,365,000)

740.0%

(37,000)

Description

2018/2019
Actual

2018/2019
Amended
Budget YTD

2018/2019
Amended
Budget

2018/19
YTD Bud
Variance

2018/19
YTD Bud
Variance

Capital Revenue & (Expenditure)

 

 

 

 

 

Land & Buildings

(343,558)

(5,216,982)

(17,902,816)

93.41%

4,873,424

Plant & Equipment

(947,492)

(1,953,000)

(6,880,100)

51.49%

1,005,508

Furniture & Equipment

(95,800)

(309,164)

(883,640)

69.01%

213,364

Infrastructure

(6,454,034)

(11,964,251)

(37,259,070)

46.06%

5,510,217

Proceeds from Sale of Assets

291,090

555,650

1,045,950

-47.61%

(264,560)

Transfer to Restricted Assets

(643,776)

(182,664)

(551,000)

-252.44%

(461,112)

Transfer from Restricted Assets

3,411,252

4,690,120

14,423,922

-27.27%

(1,278,868)

 

Operating Income:

Year to date actual Income from ordinary activities is $984K more than expected when compared to YTD budget with the following items meeting the material variance reporting threshold set by Council for the 2018/2019 Financial Year.

 

Description

2018/2019
Actual

2018/2019
Amended
Budget YTD

2018/2019
Amended
Budget

2018/19
YTD Bud
Variance

2018/19
YTD Bud
Variance

 

$

$

$

%

$

Revenue from Ordinary Activities

 

 

 

 

 

Operating Grants, Subsidies and Contributions

1,142,163

898,249

3,958,925

27.15%

243,914

Other Revenue

442,456

107,615

337,740

311.15%

334,841

Interest Earnings

863,837

683,424

2,283,760

26.40%

180,413

 

Operating Grants:

The main items affected are listed below:

 

Cost Code

Cost Code Description

Variance
YTD

Planning and Development Services

 

10942

Bushfire Risk Management Planning - DFES

141,285

 

 

 

Engineering and Works Services

 

M9970

Tree Removal and Clean up

127,893

 

Other Revenue:

The main items affected are listed below:

 

Cost Code

Cost Code Description

Variance
YTD

Finance and Corporate Services

 

10250

Information & Communication Technology Services - Sundry Income (GST) – Note offset with Lease payments

277,171

 

 

 

Engineering and Works Services

 

G0030

Busselton Transfer Station - Sale of Scrap Materials

50,169

G0031

Dunsborough Waste Facility - Sale of Scrap Materials

21,860

 


Interest Earnings:

Interest earnings are better than YTD Budget by $180K, this is better than expected interest errant on restricted assets YTD.

 

Operating Expenditure:

Expenditure from ordinary activities, excluding depreciation, is $2.44M less than expected when compared to YTD budget with the following items meeting the material variance reporting threshold set by Council for the 2018/2019 Financial Year.

 

Materials and Contracts:

The main items affected are listed below:

 

Cost Code

Cost Code Description / GL Activity

Variance
YTD

Finance and Corporate Services 

10250

Information & Communication Technology Services

(44,571)

10251

Business Systems

59,697

10500

Legal and Compliance Services

35,582

 

 

 

Community and Commercial Services 

10591

Geographe Leisure Centre

48,587

10600

Busselton Jetty Tourist Park

59,263

10900

Cultural Planning

33,478

10980

Other Law, Order & Public Safety

48,324

11151

Airport Operations

35,340

 

 

 

Planning and Development Services 

10830

Environmental Management Administration

29,712

11170

Meelup Regional Park

47,251

 

 

 

Engineering and Works Services 

11101

Engineering Services Administration

63,231

11160

Busselton Jetty

261,264

11300

Sanitation Waste Services  Administration

44,461

11301

Regional Waste Management Administration

40,000

12620

Rural-Tree Pruning

(59,000)

A9999

Miscellaneous Bridge Maintenance

44,114

B1000

Administration Building- 2-16 Southern Drive

31,421

B1401

Old Butter Factory

(72,923)

B1514

Asbestos Removal & Replacement

29,995

G0031

Dunsborough Waste Facility

(32,662)

G0032

Rubbish Sites Development

33,332

G0034

External Waste Disposal

37,768

G0042

BTS External Restoration Works

(26,983)

R0004

Bsn Foreshore Precinct (not including Skate Park)

70,607

R0820

Almond Green Park (Provence)

24,783

5280

Transport - Fleet Management

136,373

 


 

Utilities:

There is an overall variance in utility charges of $118K this variance is spread over 364 individual line items with an average variance of only $324 per item.

 

Depreciation:

There is an overall variance in depreciation of $960K, it should be noted that this is a non-cash item and does not impact on the City’s surplus position.  The variance can be attributed to the fact that Fair Valuation of infrastructure assets was completed post budget adoption and the increase in valuation was unable to be included in the 2018/2018 budget.

 

Insurance:

There is an YTD variance in insurance costs of $136K, this is of a timing issue only.

 

Other Expenditure:

There is an YTD variance in other costs of $685K, this is considered a timing issue only, and the main items affected are listed below:

 

Cost Code

Cost Code Description / GL Activity

Variance
YTD

Executive Services

10001

Office of the CEO

25,947

 

 

 

Finance and Corporate Services

10000

Members of Council

52,511

10151

Rates Administration

27,255

 

 

 

Community and Commercial Services

10530

Community Services Administration

50,950

11156

Airport Development Operations

500,000

 

 

 

Engineering and Works Services

B1223

Micro Brewery - Public Ablution

40,000

 

 

Allocations:

Allocations are running $143Kk under YTD budget; these items are an internal allocation of administrative costs from the Finance and Corporate Services division.

 

Borrowing Costs – Interest Expenses:

Interest expenses are $39k less than YTD budget, no new loans have been taken at this point in time.

 

Non-Operating Grants, Subsidies and Contributions:

Non-Operating Grants, Subsidies and Contributions are less than YTD budget by $3.127M with the main items impacting on the above result being the timing of the receipt of “Airport Development - Project Grant” with a current negative result of $2.73M and Contributions – Public Art $371K less than YTD Budget.

 


 

Capital Expenditure

As at 31 October 2018, there is a variance of -59.67% or -$11.66M in total capital expenditure with YTD actual at -$7.84M against an YTD budget of -$19.44M. The airport development makes up for $4.91M, Busselton Tennis Club – Infrastructure $1.24M, Plant and Equipment Purchases $1M Council Roads Initiative projects $933K, Eastern Link - Busselton Traffic Study $900K, Main Roads projects $716K , Sanitation Infrastructure $640K, Parks Gardens and Reserves $457K Senior Citizens Building project, Beach Restoration $250K, Furniture and Equipment $213K, Dunsborough Cycleway $213K and Busselton Jetty Precinct (769,723).  These items of under expenditure also assists in explaining the above current YTD shortfall in Non-Operating Grants.

 

The attachments to this report include detailed listings of the following 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.

 

As at 31st October 2018 the value of the City’s invested funds totalled $83.3M, up from $80.8M as at 30th September. The increase is due to the inflow of funding associated with the annual rate levies.

 

During the month of October two term deposits held with two different institutions totalling $4.5M matured. All were renewed for a further 152 days at 2.67% (on average).

 

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 $2.5M.

 

The balance of the Airport Development ANZ cash account remained steady this month.

 

The RBA left official rates on hold during October. Future movements remain uncertain at this point.

 

Chief Executive Officer – Corporate Credit Card

Details of monthly (September to 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-Sep-18

$110.00

Riverview On Mount Street

Accommodation - Cr McCallum Attending Tennis Awards

26-Sep-18

$158.00

Aloft Perth

Accommodation - Maxine Palmer Attending Tennis Awards

01-Oct-18

$280.00

Tennis West Burswood

Tennis Industry Awards 2018 x 2 Registrations

08-Oct-18

$185.00

Local Government Managers Assocn.

LG Professionals Membership T King

08-Oct-18

$80.00

NPA WA West Perth

Attend Nationals WA Sundowner (Mayor)

08-Oct-18

$59.99

Snapfish Australia

Departure Gift – Cliff Frewing Canvas Print

15-Oct-18

$56.30

Tall Timbers Manjimup

Lunch Meeting with Minister (CEO/Mayor)

15-Oct-18

$156.55

Kingsley Motel Manjimup

Accommodation For Mayor

16-Oct-18

$95.10

The Good Egg

Lunch CEO, Mayor and City of Bunbury

25-Oct-18

$486.00

Spice Odysee

Council Meeting Dinner

26-Oct-18

$25.00

Local Government Managers Assocn.

Refunded next period

 

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

 

+ Allocated against CEO Hospitality Expenses Allowance

 

CONCLUSION

 

As at 31 October 2018, the City’s financial performance is considered satisfactory. 

 

OFFICER RECOMMENDATION

 

That the Council receives the statutory financial activity statement reports for the period ending 31 October 2018, pursuant to Regulation 34(4) of the Local Government (Financial Management) Regulations.

 

 


Finance Committee

22

15 November 2018

6.1

Attachment a

Statement of Financial Activity - Period Ending 31 October 2018

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 



Finance Committee

37

15 November 2018

6.1

Attachment b

Investment Report - Period Ending 31 October 2018

 


Finance Committee                                                             39                                                          15 November 2018

6.2             LIST OF PAYMENTS MADE OCTOBER 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 - Period Ended 31 October 2018  

  

PRÉCIS

 

This report provides details of payments made from the City’s bank accounts for the month of October 2018, for noting by the Council and recording in the Council Minutes.

 

BACKGROUND

 

The Local Government (Financial Management) Regulations 1996 (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 Regulations refer to the requirement for a listing of payments made each month to be presented to the Council.

 

RELEVANT PLANS AND POLICIES

 

Not Applicable.

 

FINANCIAL IMPLICATIONS

 

Not Applicable.

 

LONG-TERM FINANCIAL PLAN IMPLICATIONS

 

Not Applicable.

 

STRATEGIC COMMUNITY OBJECTIVES

 

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

 

RISK ASSESSMENT

 

Not Applicable.

 

CONSULTATION

 

Not Applicable.

OFFICER COMMENT

 

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

 

CONCLUSION

 

The list of payments made for the month of October 2018 is presented for information.

 

OPTIONS

 

Not Applicable.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

 

Not Applicable.

 

OFFICER RECOMMENDATION

 

That the Council notes payment of voucher numbers M116206 – M116320, EF061169 – EF061667, T007412 – T007418, and DD003584 – DD003615; together totalling $8,463,368.41.

 

 


Finance Committee

59

15 November 2018

6.2

Attachment a

List of Payments - Period Ended 31 October 2018

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Finance Committee                                                             62                                                          15 November 2018

6.3             BUDGET AMENDMENT REQUEST / REVIEW

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  - Tony Nottle

VOTING REQUIREMENT:

Absolute Majority

ATTACHMENTS:

 

  

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 2018/2019 municipal budget on Wednesday, 25 July 2018 with a balanced budget position.

 

Since this time Council has been advised of certain funding changes that have positively impacted the original budget and Council is now being asked to consider budget amendments for the following key areas/projects:

 

1.    Funds Held in Trust

2.    Recognition of income for shared Library Consortia resource

3.    Recognition of Income - Regional Every Club Funding Program

4.    Recognition of Income – Community Child Care Fund Sustainability Support

5.    Busselton Lion Club – Youth Activities

 

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

 

There are no Long Term Financial Plan implications in relation to this item.

 


 

STRATEGIC COMMUNITY OBJECTIVES

 

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

 

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 Council officers.

 

OFFICER COMMENT

 

The Officer recommends the following requested budget amendments to the Finance Committee for consideration and recommendation to Council.

 

1.    “Funds Held in Trust”

 

Community Appeals Trust:

 

The City currently holds $1,000.40 in the Community Appeals Trust which dates back to 2002, this amount represents the balance Council Funds placed into trust to be used to support victims of the Bali bombings, the last payment from this fund was made in October 2005.

 

Officers recommend that the amount of $1,000.40 be transferred from the Community Appeals Trust fund to Council Reserve Fund “Emergency Disaster Recovery Reserve”.

 

Sundry Other Trusts:

 

The City currently holds $24,240.63 held in the Sundry Other Trusts which is made up of $1400 – BSN BMX Club (2006) and $22,840.63 is from the Yallingup Hall Committee (2015).

 

It is understood that the BMX Club have not been in operation since 2006, former members of the club committee have been contacted by City officers and it is recommended that these funds be transferred to the Municipal fund and utilised on rails for trails expenditure.

 

Further to the above the Yallingup Hall Committee handed back the hall to Council and disbanded in 2015 and the City of Busselton since then has been fully responsible for the hall.  This being the case it is recommended that the $22,840.63 be transferred from trust into the City’s “Building Asset Renewal Fund” for use on the hall when required.

 

Planned Expenditure Items

Officers propose that the 2018/2019 adopted budget be amended to reflect the following funding charges, shown in Table 1.

 

 

 

 

 

 

Table 1:

 

Cost Code

Description

Current Budget

Change

Proposed Amended Budget

Transfers from Trust

 

 

 

 

Trust Transfer

Community Appeals Trust

0

(1,000.40)

(1,000.40)

Trust Transfer

Sundry Other Trusts

0

(24,240.63)

(24,240.63)

 

 

 

 

 

Expenditure

 

 

 

 

C3122

Rails to Trails

248,723

1,400

250,123

 

 

 

 

 

Transfers to Reserve

 

 

 

 

Building Asset Renewal Fund

Transfer to

890,864

22,840.63

913,704.63

Emergency Disaster Recovery Reserve

Transfer to

20,936

1,000.40

21,936.40

Net Total

1,160,523.00

0

1,160,523.00

 

Proposed Outcome

Transfer of defunct Trust funds held.

 

 

2.    “Recognition of income for shared Library Consortia resource”

 

The City is a member of the SW Library Consortia (SWLC), consisting of 12 members. In 2017, the SWLC successfully procured and went on to implement across 22 libraries a shared library management system and associated operating procedures. This achieved significant savings for members who were able to divest of outdated and unsupported library software and moved to the latest in cloud-based technology. 

 

The new system has also reduced IT support requirements for individual libraries but resourcing of day to day issues,(usually user error), training and deployment of new functionality and system upgrades is still required.  It is inefficient and a duplication of overheads for each member library to individually resource this core function and therefore the Consortia approached all participating members with a proposal for a dedicated consortia resource to manage these issues and deploy new features.  The Consortia requested a contribution from each member based population.

 

The City has allocated $14,800 in the 2018/19 budget for its share of the resource; as this resource is to be hosted by the City of Busselton a budget amendment to recognise the other Consortia member contributions to the resource and associated expense is required.

 

Planned Expenditure Items

The amendments shown below in Table 2 will reflect the other Consortia member contributions and associated offset expenditure.

 

Table 2:

Cost Code

Description

Current Budget

Change

Proposed Amended Budget

233-10380-xxxx

Contributions – other Consortia Members

0

(39,000)

(39,000)

233- 10380-3295

Library Services - Other Computing Costs

14,800

39,000

53,800

Net Total

14,800

0

14,800

Proposed Outcome

Provide financial support to the Library Consortia which in turn will enhance patrons experience, address duplication across the 12 member Local Governments and provide dedicated support to member Local Governments. There will be no impact on the adopted budget.

 

 

3.    “Recognition of Income - Regional Every Club Funding Program”

 

The City has been successful in securing a grant for $40,000 over 2 years from the Department of Local Government, Sport and Cultural Industries to deliver a range of strategic planning workshops and community workshops for sports in the region.

 

This project has been developed in partnership with the surrounding City of Busselton Local Government Authorities (Shires of Capel and Augusta Margaret River), with the key outcome being to educate the club volunteers and to have sustainable associations and clubs by conducting strategic planning workshops. The project is also designed to assist targeted sporting associations and clubs to plan their resources and growth and will also support the development of the City of Busselton’s Recreation Facilities Strategy.

 

 

Planned Expenditure Items

Year 1 funding agreement is from 1 September 2018 to 31 August 2019. ($20,000)

Year 2 funding agreement is from 1 September 2019 to 31 August 2019. ($20,000)

 

Expenditure will be used for contractor and staff time, meeting and workshop facilitation.

 

The amendments shown in Table 3 are sought for approval.

 

Table 3:

 

Cost Code

Description

Current Budget

Change

Proposed Amended Budget

Revenue

 

 

 

 

332-10540-1239-9353

Operating Grants & Subsidies-other

0

(20,000)

(20,000)

Expenditure

 

 

 

 

332-10540-3260-9353

Consultancy

20,000

20,000

40,000

Net Total

20,000

0

20,000

 

Proposed Outcome

Recognition of Grant Funding and programme activities.

 

 

4.    “Recognition of Income – Community Child Care Fund Sustainability Support”

 

The City has been successful in securing a grant for $64,000 over 2 years from the Commonwealth Department of Education and Training to deliver a range of strategies aimed at assisting the sustainability of the outside school hours care vacation care program at Naturaliste Community Centre.

 


 

This projects key outcomes are to formulate and implement a number of business, programming, marketing, training and staffing strategies with the aim to increase utilisation and improve service sustainability. Part of the process will be to engage a consultant to review the service and make recommendations regarding policy and procedure, target marketing, compliance and training.

 

Planned Expenditure Items

Year 1 funding agreement is from 1 July 2018 to 30th June 2019. ($41,000)

Year 2 funding agreement is from 1 July 2019 to 30 June 2020. ($23,000)

 

Expenditure will be used for the following over the 2 years in accordance with the grant agreement

 

1.    Consultants /professional fees ($15,000)

2.    Transport costs ($5,000)

3.    Changes to business practices ($4,000)

4.    Additional operating costs ($2,000)

5.    Additional target marketing ( $10,000)

6.    Educational resources and materials ($23,000)

7.    Wages and training ($5,000)

 

The amendments shown in Table 4 are sought for approval.

 

Table 4:

 

Cost Code

Description

Current Budget

Change

Proposed Amended Budget

Revenue

 

 

 

 

336- 10590- 1239 -7007

Operating Grants & Subsidies-other

0

(41,000)

(41,000)

Expenditure

 

 

 

 

336-10590-3038-7007

Wages

157,950

3,000

160,950

336-10590-3376-7007

Holiday Program activities

6,000

17,000

23,000

336-10590-3623-7007

Marketing  and promotions

3,000

6,000

9,000

336-10590-3301-7007

Furniture and off equip purchases

1,500

15,000

16,500

Net Total

168,450

0

168,450

 

Proposed Outcome

Recognition of Grant Funding and programme activities.

 

5.    “Busselton Lion Club – Youth Activities”

 

The City of Busselton was presented with a cheque for $3,000 by the Busselton Lions Club at the Youth Centre on Friday 2nd November 2018.  The Lions Club are keen to support youth initiatives.

 

Planned Expenditure Items

The funding is to be used to support the youth cooking program at the Youth Centre and will include the purchase of cooking equipment and a lockable storage cupboard.  The purpose of this proposed budget amendment is to include this funding as revenue and corresponding expenditure in Council’s  2018/19 Budget.

 

The amendments shown in Table 4 are sought for approval.

 


 

Table 5:

Cost Code

Description

Current Budget

Change

Proposed Amended Budget

Revenue

 

 

 

 

330 B1361 1239 000

Operating Grants & subsidies  - other

(29,000)

(3,000)

(32,000)

Expenditure

 

 

 

 

330 B1361 3413 000

Youth Services Programs and Activities

37,460

3,000

40,460

Net Total

8460

0

8,460

 

Proposed Outcome

Recognition of Grant Funding and programme activities.

 

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 Council endorse the requested budget amendments outlined in tables 1 to 5 below, resulting in no change to an amended budgeted surplus position of $0.

 

Table 1:

 

Cost Code

Description

Current Budget

Change

Proposed Amended Budget

Transfers from Trust

 

 

 

 

Trust Transfer

Community Appeals Trust

0

(1,000.40)

(1,000.40)

Trust Transfer

Sundry Other Trusts

0

(24,240.63)

(24,240.63)

 

 

 

 

 

Expenditure

 

 

 

 

C3122

Rails to Trails

248,723

1,400

250,123

 

 

 

 

 

Transfers to Reserve

 

 

 

 

Building Asset Renewal Fund

Transfer to

890,864

22,840.63

913,704.63

Emergency Disaster Recovery Reserve

Transfer to

20,936

1,000.40

21,936.40

Net Total

1,160,523.00

0

1,160,523.00

 

Table 2:

 

Cost Code

Description

Current Budget

Change

Proposed Amended Budget

233-10380-xxxx

Contributions – other Consortia Members

0

(39,000)

(39,000)

233- 10380-3295

Library Services - Other Computing Costs

14,800

39,000

53,800

Net Total

14,800

0

14,800

 

Table 3:

 

Cost Code

Description

Current Budget

Change

Proposed Amended Budget

Revenue

 

 

 

 

332-10540-1239-9353

Operating Grants & Subsidies-other

0

(20,000)

(20,000)

Expenditure

 

 

 

 

332-10540-3260-9353

Consultancy

20,000

20,000

40,000

Net Total

20,000

0

20,000

 

Table 4:

 

Cost Code

Description

Current Budget

Change

Proposed Amended Budget

Revenue

 

 

 

 

336- 10590- 1239 -7007

Operating Grants & Subsidies-other

0

(41,000)

(41,000)

Expenditure

 

 

 

 

336-10590-3038-7007

Wages

157,950

3,000

160,950

336-10590-3376-7007

Holiday Program activities

6,000

17,000

23,000

336-10590-3623-7007

Marketing  and promotions

3,000

6,000

9,000

336-10590-3301-7007

Furniture and off equip purchases

1,500

15,000

16,500

Net Total

168,450

0

168,450

 

Table 5:

 

Cost Code

Description

Current Budget

Change

Proposed Amended Budget

Revenue

 

 

 

 

330 B1361 1239 000

Operating Grants & subsidies  - other

(29,000)

(3,000)

(32,000)

Expenditure

 

 

 

 

330 B1361 3413 000

Youth Services Programs and Activities

37,460

3,000

40,460

Net Total

8460

0

8,460

 

 

  


Finance Committee                                                             67                                                          15 November 2018

7.               General Discussion Items  

8.               Next Meeting Date

9.               Closure