COB-RGB

 

 

 

 

 

Finance Committee Agenda

 

 

 

22 January 2020

 

 

 

 

 


ALL INFORMATION AVAILABLE IN VARIOUS FORMATS ON REQUEST

city@busselton.wa.gov.au

 

 


CITY OF BUSSELTON

MEETING NOTICE AND AGENDA – 22 January 2020

 

 

 

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 Wednesday, 22 January 2020, commencing at 10.00am.

 

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

 

14 January 2020


CITY OF BUSSELTON

Agenda FOR THE Finance Committee MEETING TO BE HELD ON 22 January 2020

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 21 November 2019. 2

6....... Reports. 2

6.1          FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 30 NOVEMBER 2019. 2

6.2          LIST OF PAYMENTS MADE - NOVEMBER 2019. 2

6.3          BUDGET AMENDMENT REQUEST / REVIEW - CLIMATE ADAPTATION RESERVE. 2

6.4          BUDGET AMENDMENT REQUEST / REVIEW - VASSE KALOORUP OVAL CARPARK DEVELOPMENT. 2

6.5          BUDGET AMENDMENT REQUEST / REVIEW - PROJECT OVERSPENDS OFFSET BY ROAD ASSET RENEWAL RESERVE. 2

6.6          BUDGET AMENDMENT REQUEST / REVIEW - OLD VASSE LIGHTHOUSE. 2

6.7          BUDGET AMENDMENT REQUEST / REVIEW - REALLOCATION OF GLC POOL RELINING BUDGET  2

7....... General Discussion Items. 2

8....... Next Meeting Date. 2

9....... Closure. 2

 


Finance Committee                                                             4                                                                  22 January 2020

 

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 21 November 2019

Recommendation

That the Minutes of the Finance Committee Meeting held 21 November 2019 be confirmed as a true and correct record.

 


Finance Committee                                                             14                                                                22 January 2020

6.               Reports

6.1             FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 30 NOVEMBER 2019

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

 

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

Simple Majority

ATTACHMENTS

Attachment a   Investment Report November 2019

Attachment b    Financial Activity Statement YTD November 2019  

 

OFFICER RECOMMENDATION

That the Council receives the statutory financial activity statement reports for the period ending 30 November 2019, pursuant to Regulation 34(4) of the Local Government (Financial Management) Regulations.

EXECUTIVE SUMMARY

Pursuant to Section 6.4 of the Local Government Act 1995 (the Act) and Regulation 34(4) of the Local Government (Financial Management) Regulations 1996 (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 2019.

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 on 31 July 2019, the Council adopted (C1907/131) the following material variance reporting threshold for the 2019/20 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 2019/20 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.”

OFFICER COMMENT

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

 

Statement of Financial Activity

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

 

Net Current Position

This report provides details of the composition of the net current asset position on a 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 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 30 November 2019

The Statement of Financial Activity for the year to date as at 30 November 2019 shows an overall Net Current Position of $34.1M as opposed to the amended budget of $21.1M. The following summarises the major variances in accordance with Council’s adopted material variance reporting threshold that collectively make up the above difference:

 

Description

2019/20
Actual YTD

2019/20
Amended
Budget YTD

2019/20
Amended
Budget

2019/20
YTD Bud Variance

2019/20
YTD Bud Variance

 

$

$

$

%

$

Revenue from Ordinary Activities

 

1.     Operating Grants, Subsidies and Contributions

2,261,197

1,462,264

4,926,958

54.64%

798,933

2.     Interest Earnings

985,097

867,290

1,955,000

13.58%

117,807

 

 

 

 

 

 

Expenses from Ordinary Activities

 

 

 

 

3.     Materials & Contracts

(6,574,202)

(7,455,664)

(19,058,249)

11.82%

881,462

4.     Utilities (Gas, Electricity, Water etc)

(972,991)

(1,115,946)

(2,774,257)

12.81%

142,955

5.     Other Expenditure

(1,394,441)

(1,096,309)

(4,920,811)

(27.19%)

(298,132)

6.     Allocations

670,692

908,766

2,161,452

26.20%

(238,074)

 

 

 

 

 

 

7.    Non-Operating Grants, Subsidies and Contributions

1,948,119

2,829,823

23,804,690

(31.16%)

(881,704)

 

 

 

 

 

 

Capital Revenue & (Expenditure)

 

 

 

 

8.     Land & Buildings

(952,526)

(3,348,268)

(9,837,358)

71.55%

2,395,742

Plant & Equipment

(538,441)

(1,775,915)

(4,493,000)

69.68%

1,237,474

Furniture & Equipment

(66,522)

(451,690)

(1,113,069)

85.27%

385,168

Infrastructure

(4,646,410)

(11,761,583)

(36,934,273)

60.50%

7,115,173

9.     Proceeds from Sale of Assets

255,155

483,050

3,476,580

(47.18%)

(227,895)

10.  Self Supporting Loans - Repayment of Principal

(23,826)

26,176

76,055

(191.02%)

(50,002)

11.  Transfer to Restricted Assets

(95,301)

(25,045)

(60,100)

(280.52%)

(70,256)

12.  Transfer from Restricted Assets

538,401

0

6,319,121

100.00%

538,401

13.  Transfer from Reserves

1,232,906

1,657,906

34,970,205

(25.63%)

(425,000)

 

Revenue from Ordinary Activities

Year to date (YTD) actual income from ordinary activities is $1.713M more than expected when compared to the YTD amended budget, with the following items meeting the material variance reporting threshold:

1.    Operating Grants, Subsidies and Contributions are $799K (net) better than amended budget. This variance is mainly due to the following:

·    Grants Commission (10152) ($106K) – local roads grant, special grants for bridges.  This variance arose as we did not receive the quarterly grants for the Kaloorup and Boallia roads bridges.  It should be noted that as this is a pass through to Main Roads, the related capital expenditure items have not occurred either, so it is a neutral position on cash basis.  The Director of EWS advises that should work on these particular bridges actually go ahead, Main Roads may hold the grants directly themselves;

·    Insurance Reimbursements (10200) $76K – Insurance recoveries not yet allocated to correct section and contributions credit (1st and 2nd instalments), received earlier than expected;

·    Legal Fees Reimbursements (10500) ($33K) – budget item included for a fine that was received in the 18/19 financial year.  A budget amendment was processed to move a portion of the fine from retained earnings to a legal reserve, however a further budget amendment to remove this revenue item is being investigated;

·    Human Resources Reimbursements (10521) $37K - $18K due to conference & training reimbursements not budgeted for sufficiently and $19K received in workers comp reimbursements with all receipts budgeted in June;

·    Recreation Grants (10540) $25K – $20K receipt doubled up in error, will be corrected for the December accounts;

·    Environmental Management Administration (10830) $172K – grant received for the Revitalizing Geographe Waterways Phase 2 project earlier than forecast;

·    Preventative Services CLAG (10925) $28K – part of the operating grant received from Department of Health earlier than budgeted;

·    Protective burning and firebreaks reserve (10931) $166K. This variance relates to receiving 50% grant awarded to the City under the mitigation activity fund (Emergency Services Levy) and will be subject to a Council report requesting that the 2019/20 budget be amended to reflect this additional income.  Details of the cost codes for this amendment are being finalised;

·    Bushfire risk management planning (10942) DFES $101K. This variance relates to the payment of grant in full for the bushfire risk planning coordinator position within the City of Busselton. This represents a timing difference between budget allocations (over 12 months), and actual funds received;

·    Fire Prevention DFES (10940) $49K – this is due to a combination of receiving the quarterly ESL grant a month earlier than forecast ($90K over), and not receiving the prior period grant acquittal adjustment that was forecast in October ($41K under);

·    Pre-Primary Building & Surrounds (B1503) $30K – grant was budgeted to be received in June 2020, but was received in November 2019;

·    Regional Waste Management Administration (11301) ($27K) – annual budget of $63K spread over 12 months, but no contributions have actually been invoiced or received YTD;

·    Reimbursements Old Butter Factory (B1401 & B9610) $193K – timing difference due to difficulties in predicting when LGIS would process the claims;

 

2.    Interest earnings is $118K better than amended budget.  This variance is mainly due to the following:

·    Late payment interest (NA1203) $49K

·    Instalment plan interest (NA1204) $53K

·    Interest on municipal funds (NA1760) $46K

·    Interest on reserve funds (NA1761) $58K

·    Interest on restricted funds (NA1762) $28K

 


 

Expenses from Ordinary Activities

Expenditure from ordinary activities is $1.11M less than expected when compared to the amended YTD budget, with the following items meeting the material variance reporting threshold:

 

3.    Materials and Contracts better than amended budget YTD by $881K

The main contributing items are listed below:

Cost Code

Cost Code Description / GL Activity

Variance
YTD
$

Finance and Corporate Services

 

10000

Members of Council

(28,819)

10200

Financial Services

(40,810)

10250

Information & Communication Technology Services

(379,779)

10500

Legal and Compliance Services

34,150

Community and Commercial Services

 

10380

Busselton Library

41,733

10600

Busselton Jetty Tourist Park

83,752

11151

Airport Operations

28,611

Planning and Development Services

 

10820

Strategic Planning

78,793

10830

Environmental Management Administration

100,898

10850

Implement Management Plans Other

37,499

10922

Preventative Services – Mosquitoes

(26,541)

Engineering and Works Services

 

Various

Busselton Jetty Maintenance

276,694

12620

Rural-Tree Pruning

(98,692)

12621

Urban-Tree Pruning

(66,920)

Various

Bridge Maintenance

84,339

Various

Building Maintenance

85,604

Various

Other Infrastructure Maintenance

59,023

Various

Waste services

167,829

Various

Road Maintenance

(96,747)

Various

Reserve Maintenance

131,750

 

4.    Utilities $143K better than amended YTD budget:

This relates mainly to a total underspend YTD in the 140 electricity accounts of $87K; $48K in water and $6K in telephones.  Anecdotally this relates to timing differences of when the various invoices are received and processed, which, based on previous years, usually resolves itself closer to budget by year end. The accounts are monitored and reviewed with any major anomalies investigated.


 

5.    Other Expenditure $298K over amended YTD budget:

The main contributing items are listed below:

Cost Code

Cost Code Description / GL Activity

Variance
YTD
$

Finance and Corporate Services

 

10000

Members of Council

87,449

10151

Rates Administration

27,510

10700

Public Relations

26,229

Community and Commercial Services

 

10530

Community Services Administration

(70,339)

10533

Welfare / Senior Citizens

43,397

10536

School Chaplaincy Programs

(40,490)

10547

Iron Man

(195,000)

12631

Peel Tce Building & Surrounds

(39,962)

B1354

John Edwards Pavilion

(95,455)

 

6.    Allocations

In addition to administration based allocations which clear each month, this category also includes plant and overhead related allocations. Due to the nature of these line items, the activity reflects as a net offset against operating expenditure, in recognition of those expenses that are of a capital nature (and need to be recognised accordingly). It should be noted that performance in the category has no direct impact on the closing position.  

 

Non-Operating Grants, Subsidies and Contributions

7.    Non-Operating Grants, Subsidies and Contributions are less than budget by $882K with the main items impacting on the above result being the timing of the receipt of funding which is also offset with less than anticipated capital expenditure at this time.

 

Cost Code

Cost Code Description

Variance
YTD

Finance and Corporate Services

 

10239

Contributions - Community Facilities

(307,644)

R0288/R0228

Contributions - Capital Activities - Locke Estate

48,000

Community and Commercial Services

 

C6099

Airport Development - Project Grant

477,978

Planning and Development Services

 

B9109

Hithergreen Building Renovations

(28,705)

Engineering and Works Services

 

C1512

Port Geographe Boat Ramp Renewal Works

(68,750)

C3113

Busselton Tennis Club - Infrastructure

80,000

C3168

Busselton Foreshore Jetty Precinct

(128,425)

C3186

Lou Weston Oval - Courts

(195,000)

F0019

College Avenue

72,000

S0035

Strelly Street / Barlee Street Roundabout

37,803

S0051

Causeway Road / Rosemary Drive Roundabout

(133,335)

S0064

Peel Terrace (Stanley Pl/Cammilleri St Intersection Upgrade)

(83,335)

S0069

Peel Terrace (Brown Street Intersection Upgrades)

(41,665)

S0071

Ludlow-Hithergreen Road Safety Improvements

230,600


 

S0072

Kaloorup Road - Reconstruct and Seal Shoulders

100,000

T0019

Wonnerup South Road - Reconstruct and Widening (narrow seal)

(260,225)

T0085

Yoongarillup Road - Reconstruct Intersection at Vasse H/Way

(87,500)

T0086

Yoongarillup Road - Reconstruct & Widen (Western Section)

(615,875)

 

Capital Expenditure

8.    As at 30 November 2019, there is a variance of 64.2% or $11.1M in total capital expenditure with YTD actual at $6.2M against the YTD amended budget of $17.3M.

 

The attachments to this report include detailed listings of all capital expenditure (project) items, however the main areas of variance are summarised as follows:

Cost Code

Cost Code Description

Variance
YTD

Buildings

 2,400,303

B9600

Old Vasse Lighthouse (budget amendment pending)

43,745

B9516

Busselton Library Upgrade

135,375

B9109

Hithergreen Building Renovations

28,705

B9407

Busselton Senior Citizens

442,395

B9511

ArtGeo Building (budget amendment pending)

(27,703)

B9596

GLC Building Improvements

119,353

B9604

Womens Change Facility Bovell

(55,304)

B9605

Energy Efficiency Initiatives (Various Buildings

43,988

B9610

Old Butter Factory

(100,241)

B9716 & B9717

Airport Terminals

1,678,335

B9808

Busselton Jetty Tourist Park Upgrade

66,128

Plant & Equipment

1,237,474

10115

Major Projects Administration

40,423

10250

Information & Communication Technology Services

35,000

10910

Building Services

35,000

11101

Engineering Services Administration

40,000

11150

Asset Management Administration

35,000

11151

Airport Operations

30,000

11156

Airport Development Operations (budget amendment pending)

(26,950)

11402

Plant Purchases (P10) (budget amendment pending)

645,000

11403

Plant Purchases (P11) (budget amendment pending)

182,369

11404

Plant Purchases (P12) (budget amendment pending)

190,000

Furniture & Office Equipment

385,168

10250

Information & Communication Technology Services

274,401

11156

Airport Development Operations

125,000

Infrastructure By Class

7,115,173

 

Roads

2,328,696

 

Bridges

62,000

 

Car Parks

328,427

 

Footpaths & Cycleways

247,781

 

Parks, Gardens & Reserves

3,383,913

 

Regional Airport & Industrial Park Infrastructure

746,037

 

 

Many of these items of under expenditure, e.g. Main Roads construction works, also assists in explaining the above current YTD shortfall in Non-Operating Grants. In the main, many of these projects have yet to be commenced at this time of year and represent a timing difference.

 

Proceeds from Sale of Assets

9.    There is a variance for the proceeds from sale of assets of -$228K, due to timing in the changeover of vehicles.

 

Self Supporting Loans – Repayment of Principal

10.   There is a variance of YTD $26K vs a budget of $24K.  The accounting treatment in the system for the Tennis Club loan has not yet been actioned.  This will be rectified in December.

 

Transfer to Restricted Assets

11.  There is a variance for transfer to restricted assets of $70K more than amended budget.   The reason for this is as follows:

·    Transfer to deposits and bonds of $44K as opposed to a budget of $0. These funds do not have a budget allocation as they are not able to be reliably measured;

·    Interest earned on government grants of $25K transferred to restricted cash, for which there was no budget allocated as it was expected that the grant would have been utilized by this stage.

 

Transfer from Restricted Assets

12.  There is a variance for transfer from restricted assets of $538K more than amended budget.   The main reason for this is as follows:

·    Transfer from Roadwork Bonds of $519K as opposed to a budget of $0.  These funds do not have a budget allocation as they are not able to be reliably measured;

Transfer from Reserves

13.  There is a variance for transfer from reserves of $425K less than amended budget. The reason for this is as follows:

·         Transfer from Jetty Maintenance Reserve of $425K did not occur due to works not being undertaken on cost code C3497 (part of the Parks, Gardens & Reserves variance shown above), for the following reasons:

i.  The previous expenditure figure was based on the 50 year plan.

ii. The 5 year structural review undertaken in 2019/2020 discovered that the Jetty was in better condition than forecast in the 50 year plan.  Capital works planned for 2020 have been deferred to 2030.

iii.               Requests for Tenders issued for maintenance works per the 5 year plan are to be awarded at the Council meeting on 29 January 2020.

iv.              As a result budget figures have been revised for next the 5 financial years to reflect the 5 year plan.

 

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 30 November 2019, the value of the City’s invested funds totalled $84.48M, steady from $84.48M as at 31 October 2019.

 

During the month of November, only one term deposit in the amount of $2.0M matured. It was renewed for a further 91 days at 1.58%.

 

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) remained steady.

 

The balance of the Airport Development ANZ and WATC cash accounts remained steady, although an amount of $1.5M was withdrawn from the WATC account and transferred to the ANZ Cash A/c.

 

The RBA announced no rate changes in November or December. Future movements are unknown at this time although further drops are possible in coming months.

 

Chief Executive Officer – Corporate Credit Card

Details of monthly (October to November) 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

28-Oct-19

         205.00

Dataco Pty Ltd

Civic Reception Beverages

08-Nov-19

             7.17

City of Perth

Parliament Parking - Meeting

13-Nov-19

         304.50

Caves House Hotel

Deposit - Councillor & SMG EOY Function

18-Nov-19

         124.23

Airport Security Parking

Parking LGCOG Conference Hervey Bay*

25-Nov-19

         232.88

Mantra Hervey Bay

Accommodation LGCOG Conference*

25-Nov-19

         101.00

The Dock Hervey Bay

Meals LGCOG Conference Hervey Bay*

26-Nov-19

           36.83

EG Fuelco

Fuel Hire Car LGCOG Conference*

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

+ Allocated against CEO Hospitality Expenses Allowance

Statutory Environment

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

Relevant Plans and Policies

There are no relevant plans or policies to consider in relation to this matter.

Financial Implications

Any financial implications are detailed within the context of this 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. No risks of a medium or greater level have been identified.

Options

The Statements of Financial Activity are presented in accordance with Section 6.4 of the Act and Regulation 34 of the Regulations and are to be received. Council may wish to make additional resolutions as a result of having received these reports.

 

CONCLUSION

As at 30 November 2019, the City’s financial performance is considered satisfactory.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.


Finance Committee

15

22 January 2020

6.1

Attachment a

Investment Report November 2019

 


Finance Committee

32

22 January 2020

6.1

Attachment b

Financial Activity Statement YTD November 2019

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Finance Committee                                                             34                                                                22 January 2020

6.2             LIST OF PAYMENTS MADE - NOVEMBER 2019

STRATEGIC GOAL

STRATEGIC OBJECTIVE

6. LEADERSHIP Visionary, collaborative, accountable

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

SUBJECT INDEX

Financial Operations

BUSINESS UNIT

 Financial Services

REPORTING OFFICER

Manager Financial Services - Paul Sheridan

AUTHORISING OFFICER

Director Finance and Corporate Services - Tony Nottle

NATURE OF DECISION

Noting: the item does not require a decision of Council and is simply for information purposes and noting

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   November 2019 Payments Listing  

 

OFFICER RECOMMENDATION

That the Committee notes payment of voucher numbers M117537 – M117536, EF068003 – EF068583, T007489 – T007492, DD003929, DD003945 and DD003925 – DD003947 together totalling $6,923,800.89.

EXECUTIVE SUMMARY

This report provides details of payments made from the City’s bank accounts for the month of November 2019, for noting by the Committee and recording in the Committee Minutes.

 

BACKGROUND

The Local Government (Financial Management) Regulations 1996 requires 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, the Committee.

OFFICER COMMENT

In accordance with regular custom, the list of payments made for the month of November 2019 is presented for information.

Statutory Environment

Section 6.10 of the Local Government Act 1995 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

There are no relevant plans or policies to consider in relation to this matter.

Financial Implications

There are no financial implications associated with the officer recommendation.

Stakeholder Consultation

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

Risk Assessment

No risks of a medium or greater level have been identified.

Options

Not applicable.

CONCLUSION

The list of payments made for the month of November 2019 is presented for information.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.

 


Finance Committee

44

22 January 2020

6.2

Attachment a

November 2019 Payments Listing

 


 


 


 


 


 


 


 


 


 


Finance Committee                                                             48                                                                22 January 2020

6.3             BUDGET AMENDMENT REQUEST / REVIEW - CLIMATE ADAPTATION RESERVE

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 Table 1 below resulting in a nil impact on the City’s budgeted net current position:

 

Table 1:

Cost Code

Description

Current Amended Budget ($)

Change ($)

Resulting Proposed Amended Budget ($)

Current Assets

 

 

 

 

9000-7001

Municipal Cash at Bank

(160,209)

(162,352)

(322,561)

Revenue

 

 

 

 

510-C2512-1215-0000

Capital Grants – Sand Renourishment

(60,000)

60,000

0

Expenditure

 

 

 

 

510-C2525-3280-0000

Contractor Costs – Wonnerup Groynes 3, 4, 5 & 6

136,000

11,367

147,367

510-C2528-3280-0000

Contractor Costs – Craig Street Groyne & Sea Wall

84,209

90,985

175,194

Reserve

 

 

 

 

9000-2500

Transfer to Reserve – Municipal Retained Earnings

(1,316,137)

(162,352)

(1,478,489)

102-9103

Transfer from Climate Adaptation Reserve

1,316,137

162,352

1,478,489

 Net Total

0

0

0

 

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 a nil impact to the City’s budgeted net current position.

BACKGROUND

Council adopted its 2019/2020 municipal budget on Wednesday 31 July 2019 with a balanced budget position. Since this time, the City has been advised of certain expense changes that have impacted the original budget. The Finance Committee is now being asked to consider recommending to Council a budget amendment for the following items:

 

1.    Sand Renourishment

a)    Remove $60,000 from the budgeted Sand Renourishment Coastal Adaptation and Protection program (CAP) grant allocation.

b)    Retain the corresponding Sand Renourishment expenditure budget, funded by drawing down an additional $60,000 from Reserve 102 - Climate Adaptation Reserve.

2.    Coastal Protection Groyne Projects

a)    Include the refurbishment of one extra groyne to the capital project C2525 Wonnerup Groynes 3, 5 & 6 and adjust the project name to Wonnerup Groynes 3, 4, 5 & 6.

b)    Add an additional budget of $11,367 against project C2525 Wonnerup Groynes 3, 4, 5 & 6 to be drawn from Reserve 102 - Climate Adaptation Reserve.

c)    Add an additional budget of $90,985 against project C2528 being the Craig Street Groynes and Sea Wall, also to be drawn from Reserve 102 - Climate Adaptation Reserve.

OFFICER COMMENT

Sand Renourishment

Over the last eight years, the City has been very successful in securing sand renourishment grant funding under the State Governments Coastal Adaptation and Protection (CAP) grants program, having been successful five out of the last eight years. Unfortunately, this financial year the City has been unable to secure grant funding, requiring a budget amendment to recognise the reduced grant income.

 

Total sand renourishment costs year to date total $202,378, against a budget of $259,240 for the year. It is highly likely the City will encounter damaging storms in winter 2020 and that coastal renourishment will be necessary. City officers are therefore seeking to retain the expenditure budget at current levels through drawdown of an equivalent amount ($60,000) from the Climate Adaptation Reserve.

 

Coastal Protection Groyne Projects

Last financial year, the City embarked on two coastal protection groyne projects. These two projects were combined into a single Tender due to the nature of the works being related, i.e. rock seawall and groyne works

 

The first project was to refurbish three of the six Wonnerup groynes at an original estimated cost of $300,000 (C2525). Upon further investigation it was decided to include a fourth groyne into the scope of works. The works spanned two financial years at a total cost of $171,794. The budget carried over into the 2019/2020 budget for this project was calculated incorrectly with an amount of $136,000 carried over as opposed to $147,367. Council approval is therefore sought to add an additional $11,367 to the budget for C2525 Wonnerup groynes 3, 4, 5 & 6, to be drawn down from the Climate Adaptation Reserve.

 


 

Additionally, the intent was to carry over the full remaining budget (of the original $300,000) as at the end of 2018/2019 which was $275,573; such that the balance (between that and the total cost of $171,794 for project one) could be utilised for project two - the construction of coastal defences C2528 - Craig Street groyne and sea wall.

 

Project two was originally estimated to cost $250,000. The City received grant funding from the Department of Transport’s Costal Adaptation Program to the value of $125,000, matched by the City for an overall budget of $250,000. The total project came in at $340,986; over budget by $90,986. As noted above, it was intended that the savings from the Wonnerup groyne project ($128,206) would cover / offset the over expenditure against this project. The savings were not carried over however and so effectively were never drawn down from the Climate Adaptation Reserve in 2018/19. In order to balance this year’s budget, a request is made to budget an additional amount of $90,986 against this project; to be drawn from the Climate Adaptation Reserve.

 

In summary, the two projects had a total combined budget of $300,000+250,000 = $550,000 and the total cost for both amounts to $171,794+$340,986 = $512,780. Thus combined, the projects came in under budget by $37,220.  Due to the circumstances described above however, budget adjustments are now required.

 

Planned Amendment Items

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

 

Table 1:

Cost Code

Description

Current Amended Budget ($)

Change ($)

Resulting Proposed Amended Budget ($)

Current Assets

 

 

 

 

9000-7001

Municipal Cash at Bank

(160,209)

(162,352)

(322,561)

Revenue

 

 

 

 

510-C2512-1215-0000

Capital Grants – Sand Renourishment

(60,000)

60,000

0

Expenditure

 

 

 

 

510-C2525-3280-0000

Contractor Costs – Wonnerup Groynes 3, 4, 5 & 6

136,000

11,367

147,367

510-C2528-3280-0000

Contractor Costs – Craig Street Groyne & Sea Wall

84,209

90,985

175,194

Reserve

 

 

 

 

9000-2500

Transfer to Reserve – Municipal Retained Earnings

(1,316,137)

(162,352)

(1,478,489)

102-9103

Transfer from Climate Adaptation Reserve

1,316,137

162,352

1,478,489

 Net Total 

0

0

0

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. Any adjustments to a budget allocation must be made by an absolute majority decision of the Council. Additionally, 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

The proposed budget amendment is supported by the City’s asset management plan, capital works program and long term financial plan.

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.  No risks of a medium or greater level have been 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 remaining 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.

 


Finance Committee                                                             51                                                                22 January 2020

6.4             BUDGET AMENDMENT REQUEST / REVIEW - VASSE KALOORUP OVAL CARPARK 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

Attachment a   Department of Education Letter  

 

OFFICER RECOMMENDATION

That the Council endorse the requested budget amendment outlined in Table 1 below resulting in nil impact on the budgeted net current position:

Table 1:

Cost Code

Description

Current Amended Budget ($)

Change ($)

Resulting Proposed Amended Budget ($)

Revenue

 

 

 

 

510-C0052-1212-0000

Capital Grants – Vasse Kaloorup Oval Carpark

(130,000)

(20,000)

(150,000)

Expenditure

 

 

 

 

541-C0052-3280-0000

Contractor Costs – Vasse Kaloorup Oval Carpark

260,000

20,000

280,000

 Net Total 

130,000

0

130,000

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 a nil impact on the City’s current amended budget net position.

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 certain expense changes that have impacted the original budget. The Finance Committee is now being asked to consider recommending to Council a budget amendment for the following items:

1.    An increase in the budgeted grant contribution (from $130,000 to $150,000) from the Department of Education towards the Vasse Kaloorup Oval carpark development.

2.    An increase the overall budget towards the Vasse Kaloorup Oval carpark development by $20,000 to $280,000.

OFFICER COMMENT

The City was notified in August 2019 of its success in securing $150,000 towards the Vasse Kaloorup Oval carpark development. At the time the budget was being prepared, it was estimated that this amount would be in the order of $130,000. The contribution was increased with a desire by the Department of Education “that the project may include public access pathway links to and around the school to bring students safely to school”. See Attachment A being the letter of grant award from the Department. This amendment will have no impact on the municipal net position.

 

Planned Amendment Items

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

 

Table 1:

Cost Code

Description

Current Amended Budget ($)

Change ($)

Resulting Proposed Amended Budget ($)

Revenue

 

 

 

 

541-C0052-1212-0000

Capital Grants – Vasse Kaloorup Oval Carpark

(130,000)

(20,000)

(150,000)

Expenditure

 

 

 

 

541-C0052-3280-0000

Contractor Costs – Vasse Kaloorup Oval Carpark

260,000

20,000

280,000

 Net Total 

130,000

0

130,000

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. Any adjustments to a budget allocation must be made by an absolute majority decision of the Council. Additionally, 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

The proposed budget amendment is supported by the City’s capital works program and long term financial plan.

 

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.

 


Finance Committee

52

22 January 2020

6.4

Attachment a

Department of Education Letter

 


Finance Committee                                                             56                                                                22 January 2020

6.5             BUDGET AMENDMENT REQUEST / REVIEW - PROJECT OVERSPENDS OFFSET BY ROAD ASSET RENEWAL RESERVE

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 Table 1 below resulting in a nil impact on the budgeted net current position:

Table 1:

Account Codes

Account Code Description

Current Amended Budget ($)

Change ($)

Resulting Proposed Amended Budget ($)

Current Assets

 

 

 

 

9000-7001

Municipal Bank Account

(156,913)

(268,260)

(425,173)

Expenditure

 

 

 

 

541-W0224-3280-0000

Contractor Costs - Jones Way Asphalt Overlay

74,182

18,248

92,430

541-S0068-3280-0000

Contractor Costs – Georgiana Molloy Bus Bay Facilities

0

14,784

14,784

541-S0317-3280-0000

Contractor Costs – Naturaliste Tce Asphalt Overlay

0

45,291

45,291

541-W0195-3280-0000

Contractor Costs – Yallingup Beach Road

0

43,039

43,039

541-C0013-3280-0000

Contractor Costs – Yallingup Beach Car Park

66,472

8,727

75,199

541-D0017-3280-0000

Contractor Costs – Chain Ave Drainage Works

0

41,621

41,621

541-S0035-3280-0000

Contractor Costs – Strelly St / Barlee St Roundabout

16,259

96,550

112,809

Equity

 

 

 

 

9000-2500

Transfer to Reserve - Municipal Retained Earnings

(156,913)

(268,260)

(425,173)

223-9102

Transfer from Reserve - Road Asset Renewal

156,913

268,260

425,173

 Net Total 

0

0

0

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 a nil impact on the City’s budgeted net current position.

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 certain expense changes that have impacted the original budget. The Finance Committee is now being asked to consider recommending to Council a budget amendment for the re-allocation of Road Asset Renewal Reserve funds to re-align capital project over expenditures compared to budget.

OFFICER COMMENT

The projects detailed below were budgeted and scheduled for completion in the 2018/19 financial year but were not fully invoiced or in some instances completed by the end of the financial year, they were however completed by mid-July 2019.  The carry-over work required for completion was not however re-budgeted and hence Council approval is sought to utilise funds within the Road Asset Renewal Reserve to offset the costs. 

 

In considering the detail provided for each project below, it should be noted that approximately $488,947 of road project savings was returned to the Road Asset Renewal Reserve at the end of the 2018/19 financial year (in reality they were not drawn from the reserve). This is after the various other projects were completed, carried over or correctly re listed and represents the savings which would have been used to offset the expenditure listed below. Officers therefore recommend that Council approve a budget amendment to transfer funds from the Road Asset Renewal Reserve to balance the project over expenditures that are now occurring within 2019/20 financial year budget.

 

W0224 - Jones Way Asphalt Overlay                                          Budget Required $18,248

The original scope for this project excluded approximately 150m of road resurfacing and kerb, plus two drainage pits which would allow the whole streetscape to be upgraded.  The opportunity to upgrade the whole of street was however taken, therefore maximizing on mobilization efficiencies. While this increase in scope could have (ideally) been covered from within the 2018/19 budget, works were not complete and receipt of invoices post the end of the 2018/19 has resulted in the overspend falling into the 2019/20 year.

 

S0068 - Georgiana Molloy Bus Bay Facilities                             Budget Required $14,784

The above requirement has occurred due to Contractor invoices not being received during the 2018/19 financial year. The project was delivered $51,863 under the original budget in 2018/19 with the remaining funding returned to the reserve and not carried into 2019/20.

 

 

 

S0317 - Naturaliste Terrace Asphalt Overlay                             Budget Required $45,291

Similarly, the requirement for this job has occurred due to Contractor invoices not being received during the 2018/19 financial year.   

 

W0195 - Yallingup Beach Road and                                                Budget Required $43,039

C0013 – Yallingup Beach Car Park                                                   Budget Required $8,727

The combined budget requirement associated with these two road and carpark projects is $51,766.  Works were not complete in 2018/19 and receipt of invoices post the end of the 2018/19 year has resulted in this requirement falling into 2019/20.

 

The over expenditure occurred due to wet weather, imposed staging and project scope changes including additional footpath, bollards and adjustments to the kerb profile to minimise impact to Melaleuca trees within the carpark. This over expenditure would normally have been resolved through balancing the project under and overs at the end of the 2018/19 financial year but was only highlighted as invoices and receipts were costed to the project, post the end of the financial year.

 

D0017 - Chain Avenue - Drainage Works                                     Budget Required $41,621

The above requirement has occurred largely due to drainage detail changes on-site, following input from the Water Corporation. This over expenditure only came to light post the end of the financial year due to Contractor invoices not being received during the 2018/19 financial year.

 

S0035 - Strelly Street / Barlee Street Roundabout                   Budget Required $96,550   

This requirement has occurred as works were not complete in 2018/19 and receipt of invoices post the end of 2018/19 has resulted in the overspend falling into the 2019/20 year. The over expenditure occurred due to additional NBN/ Telstra costs incurred, drainage changes on-site to avoid conflicts with utilities & additional connections, additional asphalt laid prior to winter storm event (to save granular road base), kerb changes and inefficiencies of working during inclement winter weather                                            

 

An additional $28,319 of Regional Road Group (RRG) grant funding has been secured and applied against this project, reducing the budget requirement to $96,550. Again, this over expenditure only come to light post the end of the 2018/19 financial year.

 

Planned Amendment Items

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

Table 1:

Cost Code

Description

Current Amended Budget ($)

Change ($)

Resulting Proposed Amended Budget ($)

Current Assets

 

 

 

 

9000-7001

Municipal Bank Account

(156,913)

(268,260)

(425,173)

Expenditure

 

 

 

 

541-W0224-3280-0000

Contractor Costs - Jones Way Asphalt Overlay

74,182

18,248

92,430

541-S0068-3280-0000

Contractor Costs – Georgiana Molloy Bus Bay Facilities

0

14,784

14,784

541-S0317-3280-0000

Contractor Costs – Naturaliste Tce Asphalt Overlay

0

45,291

45,291


 

541-W0195-3280-0000

Contractor Costs – Yallingup Beach Road

0

43,039

43,039

541-C0013-3280-0000

Contractor Costs – Yallingup Beach Car Park

66,472

8,727

75,199

541-D0017-3280-0000

Contractor Costs – Chain Ave Drainage Works

0

41,621

41,621

541-S0035-3280-0000

Contractor Costs – Strelly St / Barlee St Roundabout

16,259

96,550

112,809

Equity

 

 

 

 

9000-2500

Transfer to Reserve - Municipal Retained Earnings

(156,913)

(268,260)

(425,173)

223-9102

Transfer from Reserve - Road Asset Renewal

156,913

268,260

425,173

 Net Total 

0

0

0

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. Any adjustments to a budget allocation must be made by an absolute majority decision of the Council. Additionally, 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

The proposed budget amendment is supported by the City’s asset management plan, capital works program and long term financial plan. 

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 are no risks identified of medium or greater level.

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.

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.

 


Finance Committee                                                             59                                                                22 January 2020

6.6             BUDGET AMENDMENT REQUEST / REVIEW - OLD VASSE LIGHTHOUSE

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 Table 1 below resulting in nil impact on the budgeted net current position:

 

Table 1:

Cost Code

Description

Current Amended Budget ($)

Change ($)

Resulting Proposed Amended Budget ($)

Expenditure

 

 

 

 

120-B9600-3280-0000

Contractor Costs – Old Vasse Lighthouse

120,000

(94,245)

25,755

120-C3112-3280-000

Contractor Costs – Foreshore Exercise Equipment

123,400

94,245

217,644

 Net Total 

243,400

0

243,400

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 a nil impact on the City’s current amended budget net position.

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 certain expense changes that have impacted the original budget. The Finance Committee is now being asked to consider recommending to Council a budget amendment for the re-allocation of the remaining budget for the Old Vasse Lighthouse project to the Foreshore Exercise Equipment project.

 

OFFICER COMMENT

In the 2018/19 budget, the City allocated $120,000 towards the Old Vasse Lighthouse project with the understanding that the Rotary Club would provide an additional contribution of $100,000; which was later reduced to $10,000 to procure the clocks component only.

   

Following the procurement of an engineer’s structural design at a cost of $34,495, the City has a balance of $85,505 in unallocated funds to complete the project. An indicative estimated costing has been secured of $260,000 to $280,000 for the project, excluding landscaping works.

 

Given the significant reduction in available funds and the remaining scope of work to complete the project, it is recommended that it be discontinued and that the balance of remaining funds be reallocated to the Foreshore Exercise Equipment project to address a budget shortfall identified at tender stage for that project.

 

The Busselton Foreshore Exercise Equipment project includes six exercise stations over a one kilometre circuit between Gale Street and the Equinox restaurant. The project supplements youth-oriented playground infrastructure with exercise equipment that is suitable for a broad range of ages. Exercise stations are for community use and will be readily accessible to the public.

 

A Rotary clock could be further considered as part of projects such as the Mitchell Park redevelopment, or as part of an upgrade to a roundabout in an appropriate location.

 

Planned Amendment Items

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

 

Table 1:

Cost Code

Description

Current Amended Budget ($)

Change ($)

Resulting Proposed Amended Budget ($)

Expenditure

 

 

 

 

120-B9600-3280-0000

Contractor Costs – Old Vasse Lighthouse

120,000

(94,245)

25,755

120-C3112-3280-000

Contractor Costs – Foreshore Exercise Equipment

123,400

94,245

217,644

 Net Total 

243,400

0

243,400

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. Any adjustments to a budget allocation must be made by an absolute majority decision of the Council. Additionally, 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

The proposed budget amendment is supported by the City’s capital works program and long term financial plan.

Financial Implications

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

 

Stakeholder Consultation

The Rotary Club has been advised that the City is unable to proceed with the proposed Old Vasse Lighthouse project at this point in time.

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.  No risks of a medium or greater level have been identified.

Options

The Council could decide not to approve 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 remaining 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.

 


Finance Committee                                                             62                                                                22 January 2020

6.7             BUDGET AMENDMENT REQUEST / REVIEW - REALLOCATION OF GLC POOL RELINING BUDGET

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 Table 1 below resulting in nil impact on the budgeted net current position:

 

Table 1:

Cost Code

Description

Current Amended Budget ($)

Change ($)

Resulting Proposed Amended Budget ($)

Non-Current Assets

 

 

 

 

522-B9517-3280-0000

Contractor Costs – GLC Pool Relining

50,000

(50,000)

0

332-B9604-3280-0000

Contractor Costs – Women’s Change Facility Bovell

83,685

6,500

90,185

522-B9596-3280-0000

Contractor Costs – GLC Building Improvements

525,900

43,500

569,400

 Net Total 

659,585

0

659,585

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 a nil impact on the City’s current amended budget net position.

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 certain expense changes that have impacted the original budget. The Finance Committee is now being asked to consider recommending to Council a budget amendment for the re-allocation of the GLC Pool Relining budget.

 

OFFICER COMMENT

Capital works were recently completed on the installation of women’s change room facilities located at Bovell Oval. This project cost $6,500 more than estimated. To this end, a request is made to transfer $6,500 of the GLC Pool Relining budget totalling $50,000 to cover this budget overrun.

 

Subsequent to this, a second request is made to reassign the remaining $43,500 of Pool Relining budget to the GLC Building Improvements budget increasing it from $525,900 to $569,400, for works to be completed this financial year.

  

Both GLC swimming pools were relined in financial year 2017/2018. It was decided at the time that $50,000 of the left over budget be carried over in anticipation of additional future works. Additional works are no longer considered necessary. Based on this, a request is made to consolidate the remaining $43,500 of budget into this year’s GLC building improvements works, soon to go out for tender.

 

Planned Amendment Items

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

 

Table 1:

Cost Code

Description

Current Amended Budget ($)

Change ($)

Resulting Proposed Amended Budget ($)

Non-Current Assets

 

 

 

 

522-B9517-3280-0000

Contractor Costs – GLC Pool Relining

50,000

(50,000)

0

332-B9604-3280-0000

Contractor Costs – Women’s Change Facility Bovell

83,685

6,500

90,185

522-B9596-3280-0000

Contractor Costs – GLC Building Improvements

525,900

43,500

569,400

 Net Total 

659,585

0

659,585

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. Any adjustments to a budget allocation must be made by an absolute majority decision of the Council. Additionally, 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

The proposed budget amendment is supported by the City’s asset management plan, capital works program and long term financial plan.

 

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 remaining 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.

  


Finance Committee                                                             63                                                                22 January 2020

7.               General Discussion Items  

 

8.               Next Meeting Date

 

9.               Closure