CITY OF BUSSELTON

MINUTES FOR THE Finance Committee MEETING HELD ON 22 January 2020

TABLE OF CONTENTS

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. 3

6.1          FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 30 NOVEMBER 2019. 3

6.2          LIST OF PAYMENTS MADE - NOVEMBER 2019. 31

6.3          BUDGET AMENDMENT REQUEST / REVIEW - CLIMATE ADAPTATION RESERVE. 43

6.4          BUDGET AMENDMENT REQUEST / REVIEW - VASSE KALOORUP OVAL CARPARK DEVELOPMENT. 47

6.5          BUDGET AMENDMENT REQUEST / REVIEW - PROJECT OVERSPENDS OFFSET BY ROAD ASSET RENEWAL RESERVE. 51

6.6          BUDGET AMENDMENT REQUEST / REVIEW - OLD VASSE LIGHTHOUSE. 55

6.7          BUDGET AMENDMENT REQUEST / REVIEW - REALLOCATION OF GLC POOL RELINING BUDGET  58

7....... General Discussion Items. 61

8....... Next Meeting Date. 61

9....... Closure. 61

 

MINUTES

 

MINUTES OF Finance Committee HELD IN the Committee Room, Administration Building, Southern Drive, Busselton, ON 22 January 2020 AT 10.00am.

 

1.               Declaration of Opening and Announcement of Visitors

The Presiding Member opened the meeting at 10.03am.

 

2.               Attendance 

Presiding Member:	Members:
Cr Paul Carter	Cr Grant Henley Cr Sue Riccelli Cr Jo Barrett-Lennard Cr Phill Cronin

 

Officers:

 

Mr Mike Archer, Chief Executive Officer

Mr Tony Nottle, Director, Finance and Corporate Services

Mr Daniell Abrahamse, Acting Director, Engineering and Works Services

Mr Paul  Sheridan, Manager, Financial Services

Mr Eden Shepherd, Manager Major Projects and Facilities

Ms Melissa Egan, Governance Officer 

 

Apologies:

 

Nil

3.               Public Question Time  

Nil

4.               Disclosure Of Interests

Nil

5.               Confirmation Of Minutes

5.1             Minutes of the Finance Committee Meeting held 21 November 2019

COMMITTEE DECISION F2001/001        Moved Councillor G Henley, seconded Councillor J Barrett-Lennard That the Minutes of the Finance Committee Meeting held 21 November 2019 be confirmed as a true and correct record. CARRIED 5/0

 

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	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	Simple Majority
ATTACHMENTS	Attachment a   Investment Report November 2019⇩ Attachment b    Financial Activity Statement YTD November 2019⇩

 

COMMITTEE RECOMMENDATION F2001/002               Moved Councillor G Henley, seconded Councillor J Barrett-Lennard 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. CARRIED 5/0

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:

 

 

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 (1^st and 2^nd 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:

 

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:

 

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.

 

 

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:

 

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		13		22 January 2020
6.1	Attachment a		Investment Report November 2019

 

Finance Committee		19		22 January 2020
6.1	Attachment b		Financial Activity Statement YTD November 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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⇩

 

COMMITTEE DECISION F2001/003               Moved Councillor G Henley, seconded Councillor P Cronin 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. CARRIED 5/0

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		42		22 January 2020
6.2	Attachment a		November 2019 Payments Listing

 

 

 

 

 

 

 

 

 

 

 

 

 

10.51am:             At this time, Mr Nottle left the meeting.

 

10.53am:             At this time, Mr Nottle re-entered the meeting.

 

11:01 am:            At this time Councillor G Henley left the meeting.

 

11:03 am:            At this time Councillor G Henley returned to the meeting.

           

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

 

COMMITTEE RECOMMENDATION F2001/004               Moved Councillor J Barrett-Lennard, seconded Councillor S Riccelli 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 CARRIED 5/0 by absolute majority

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 Re-nourishment

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

b)    Retain the corresponding Sand Re-nourishment 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.

 

 

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⇩

 

COMMITTEE RECOMMENDATION F2001/005               Moved Councillor G Henley, seconded Councillor P Cronin 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 CARRIED 5/0 BY ABSOLUTE MAJORITY

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		50		22 January 2020
	Attachment a		Department of Education Letter

 

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

 

COMMITTEE RECOMMENDATION F2001/006               Moved Councillor G Henley, seconded Councillor S Riccelli 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 CARRIED 5/0 BY ABSOLUTE MAJORITY

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.

 

 

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

 

COMMITTEE RECOMMENDATION F2001/007               Moved Councillor J Barrett-Lennard, seconded Councillor G Henley 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 CARRIED 5/0 BY ABSOLUTE MAJORITY

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 $25,755, the City has a balance of $94,245 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.

 

 

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

 

COMMITTEE RECOMMENDATION F2001/008               Moved Councillor G Henley, seconded Councillor J Barrett-Lennard 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 CARRIED 5/0 by absolute majority

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.

 

 

11.29am:       At this time, Mr Archer left the meeting.

 

11.31am:       At this time, Mr Shepherd left the meeting.

 

11.32am:       At this time, Mr Archer re-entered the meeting.

 

 

 

  

7.               General Discussion Items  

Mr Nottle provided members with an overview of the City’s current budgeted staffing establishment and a synopsis of the changes in staffing since 2010.

 

8.               Next Meeting Date

Wednesday, 12 February 2020

 

9.               Closure

The meeting closed at 12.03pm.