COB-RGB

 

 

 

SUPPLEMENTARY

 

Finance Committee Agenda

 

 

 

17 October 2019

 

 

 

 

 


ALL INFORMATION AVAILABLE IN VARIOUS FORMATS ON REQUEST

city@busselton.wa.gov.au

 

 


CITY OF BUSSELTON

SUPPLEMENTARY AGENDA FOR THE Finance Committee MEETING TO BE HELD ON 17 October 2019

TABLE OF CONTENTS

 

ITEM NO.                                        SUBJECT                                                                                                                              PAGE NO.

6....... Reports. 3

6.8          BUDGET AMENDMENT REQUEST / REVIEW - AIRPORT DEVELOPMENT. 3

 


Finance Committee                                                             3                                                                  17 October 2019

6.               Reports

6.8             BUDGET AMENDMENT REQUEST / REVIEW - AIRPORT DEVELOPMENT

STRATEGIC GOAL

STRATEGIC OBJECTIVE

6. LEADERSHIP Visionary, collaborative, accountable

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

SUBJECT INDEX

Budget Planning and Reporting

BUSINESS UNIT

Financial Services

REPORTING OFFICER

Manager Financial Services - Paul Sheridan

AUTHORISING OFFICER

Director Finance and Corporate Services - Tony Nottle

NATURE OF DECISION

Executive: substantial direction setting, including adopting strategies, plans and policies (excluding local planning policies), tenders, setting and amending budgets, funding, donations and sponsorships, reviewing committee recommendations

VOTING REQUIREMENT

Absolute Majority

ATTACHMENTS

Nil

 

OFFICER RECOMMENDATION

That the Council endorse the requested budget amendment outlined in Tables 1 below resulting in no change to the budgeted cash position:

 

Table 1:

Cost Code

Description

Current Budget

Change

Resulting Proposed Amended Budget

Expenditure

 

 

 

 

345.B9716.3280.0000

Contractors – Airport Terminal Stage 2

$12,500,000

Decrease by

-$12,308,532

$191,468

345.B9717.3280.0000

Contractors – Airport Construction, Existing Terminal Upgrade

$500,000

Increase by

$4,048,532

$4,548,532

Revenue

 

 

 

 

 

345.C6099.1215.0000

Airport Development Capital Grants (State)

-$9,500,000

Decrease by

$9,500,000

$0

345.C6099.1215.0000

Airport Development Capital Grants (State – Additional RFR)

$0

Increase by

-$1,740,000

-$1,740,000

345.C6099.1221.0000

Airport Development Capital Grants (Federal)

-$977,978

Decrease by

$500,000

-$477,978

 Net Total 

$2,522,022

$0

$2,522,022

EXECUTIVE SUMMARY

This report seeks recommendation of the Finance Committee to Council for the approval of budget amendments as detailed in this report. Adoption of the officer recommendation will result in no change to the City’s current amended budgeted cash position of $0.

 

BACKGROUND

Council adopted its 2019/2020 municipal budget on Wednesday 31 July 2019 with a balanced budget position. Since this time, Council has been advised of changes to the timing and contractual arrangements regarding the Airport Development project that have impacted the original budget. The Finance Committee is now being asked to consider recommending to Council a budget amendment for this.

OFFICER COMMENT

Through ongoing discussions with the State Government, the City was formally notified that funding would not be released to construct the new terminal.  As such, cost estimates were sought for the required upgrade works to the existing terminal, incorporating a separate arrivals hall, in order to facilitate Regular Public Transport (RPT) Services.  As part of these discussions, the State Government advised that an additional $1,740,000 would be made available to facilitate this, in addition to the release of $1,525,000 in existing Royalties for Regions funding currently held in the Western Australian Treasury Corporation account.  The total project budget for the upgrade works is $3,265,000 which includes furniture and equipment that will be repurposed when the new terminal is constructed and operational.

 

Planned Expenditure Item

Officers propose that the 2019/2020 adopted budget be amended to reflect the following funding changes, shown in Table 1.

 

Table 1:

Cost Code

Description

Current Budget

Change

Resulting Proposed Amended Budget

Expenditure

 

 

 

 

345.B9716.3280.0000

Contractors – Airport Terminal Stage 2

$12,500,000

Decrease by

-$12,308,532

$191,468

345.B9717.3280.0000

Contractors – Airport Construction, Existing Terminal Upgrade

$500,000

Increase by

$4,048,532

$4,548,532

Revenue

 

 

0

 

0

345.C6099.1215.0000

Airport Development Capital Grants (State)

-$9,500,000

Decrease by

$9,500,000

$0

345.C6099.1215.0000

Airport Development Capital Grants (State – Additional RFR)

$0

Increase by

-$1,740,000

-$1,740,000

345.C6099.1221.0000

Airport Development Capital Grants (Federal)

-$977,978

Decrease by

$500,000

-$477,978

 Net Total 

$2,522,022

$0

$2,522,022

Statutory Environment

Section 6.8 of the Local Government Act 1995 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

The financial implications of this recommendation are contained within the report.

Stakeholder Consultation

No external stakeholder consultation was required or undertaken in relation to this matter.

Risk Assessment

An assessment of the potential implications of implementing the officer recommendation has been undertaken using the City’s risk management framework, with risks assessed taking into account any controls already in place.

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.

Options

The Council could decide not to go ahead with the proposed budget amendment request.

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.

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.