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

CITY OF BUSSELTON

MINUTES FOR THE Council MEETING HELD ON 23 September 2020

TABLE OF CONTENTS

ITEM NO.                                                          SUBJECT                                                                                                                                         PAGE NO.

1....... Declaration of Opening aCKNOWLEDGEMENT OF COUNTRY / ACKNOWLEDGEMENT OF Visitors / DISCLAIMER / NOTICE OF RECORDING OF PROCEEDINGS. 3

2....... Attendance. 3

3....... Prayer. 3

4....... Application for Leave of Absence. 4

5....... Disclosure Of Interests. 4

6....... Announcements Without Discussion.. 4

7....... Question Time For Public. 4

8....... Confirmation and Receipt Of Minutes. 4

Previous Council Meetings. 4

8.1          Minutes of the Council Meeting held 9 September 2020. 4

Committee Meetings. 4

8.2          Minutes of the Airport Advisory Committee Meeting held 9 September 2020. 4

8.3          Minutes of the Finance Committee Meeting held 9 September 2020. 5

9....... RECEIVING OF Petitions, Presentations AND DEPUTATIONS. 5

10..... QUESTIONS BY MEMBERS OF WHICH DUE NOTICE HAS BEEN GIVEN (WITHOUT DISCUSSION) 5

11..... Items brought forward. 6

ADOPTION BY EXCEPTION RESOLUTION.. 6

12.1       Finance Committee - 09/09/2020 - LIST OF PAYMENTS MADE - JULY 2020. 7

12.2       Finance Committee - 09/09/2020 - FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 31 JULY 2020. 17

17.1       COUNCILLORS' INFORMATION BULLETIN.. 50

ITEMS TO BE DEALT WITH BY SEPARATE RESOLUTION (WITHOUT DEBATE) 60

12.3       Finance Committee - 09/09/2020 - BUDGET AMENDMENT REQUEST / REVIEW - ENGINEERING AND WORKS SERVICES - SEPTEMBER 2020. 60

13..... Planning and Development Services Report. 67

14..... Engineering and Work Services Report. 68

15..... Community and Commercial Services Report. 69

16..... Finance and Corporate Services Report. 70

18..... Motions of which Previous Notice has been Given.. 71

19..... urgent business. 71

20..... Confidential Reports. 72

20.1       Airport Advisory Committee - 09/09/2020 - INTERNATIONAL ALTERNATE: BUSSELTON MARGARET RIVER AIRPORT. 72

21..... Closure. 73

 


Council                                                                                 4                                            23 September 2020

MINUTES

 

MINUTES OF A Meeting of the Busselton City Council HELD IN Council Chambers, Administration Building, Southern Drive, Busselton, ON 23 September 2020 AT 5.30pm.

 

1.              Declaration of Opening aCKNOWLEDGEMENT OF COUNTRY / ACKNOWLEDGEMENT OF Visitors / DISCLAIMER / NOTICE OF RECORDING OF PROCEEDINGS

The Presiding Member opened the meeting at 5.41pm.

 

2.              Attendance

Presiding Member:

Members:

 

Cr Grant Henley      Mayor

Cr Kelly Hick             Deputy Mayor

Cr Ross Paine

Cr Kate Cox

Cr Paul Carter

Cr Phill Cronin

Cr Jo Barrett-Lennard

Cr Lyndon Miles

 

Officers:

 

Mr Mike Archer, Chief Executive Officer

Mr Oliver Darby, Director, Engineering and Works Services

Mr Paul Needham, Director, Planning and Development Services

Mrs Naomi Searle, Director, Community and Commercial Services

Mr Tony Nottle, Director, Finance and Corporate Services

Mrs Emma Heys, Governance Coordinator

Ms Melissa Egan, Governance Officer

 

Apologies:

 

Nil

 

Approved Leave of Absence:

 

Cr Sue Riccelli

 

Media:

 

0

 

Public:

 

2

3.              Prayer

The prayer was delivered by Pastor Nigel Wittwer of the Hope Christian Church.

4.              Application for Leave of Absence 

Nil

 

5.              Disclosure Of Interests

Nil

 

6.              Announcements Without Discussion

Announcements by the Presiding Member

 

Nil

 

7.              Question Time For Public

Response to Previous Questions Taken on Notice

 

Nil

Question Time for Public

 

Nil

 

8.              Confirmation and Receipt Of Minutes

Previous Council Meetings

8.1            Minutes of the Council Meeting held 9 September 2020

Council Decision

C2009/122             Moved Councillor P Cronin, seconded Councillor J Barrett-Lennard

 

That the Minutes of the Council Meeting held 9 September 2020 be confirmed as a true and correct record.

CARRIED 8/0

 

Committee Meetings

8.2            Minutes of the Airport Advisory Committee Meeting held 9 September 2020

Council Decision

C2009/123             Moved Councillor P Carter, seconded Deputy Mayor K Hick

 

That the Minutes of the Airport Advisory Committee Meeting held 9 September 2020 be noted.

CARRIED 8/0

 

8.3            Minutes of the Finance Committee Meeting held 9 September 2020

Council Decision

C2009/124             Moved Councillor P Carter, seconded Councillor J Barrett-Lennard

 

That the Minutes of the Finance Committee Meeting held 9 September 2020 be noted.

CARRIED 8/0

 

9.              RECEIVING OF Petitions, Presentations AND DEPUTATIONS

Petitions

 

Nil

Presentations

 

Nil

Deputations

 

Nil

 

10.            QUESTIONS BY MEMBERS OF WHICH DUE NOTICE HAS BEEN GIVEN (WITHOUT DISCUSSION)

Nil


 

11.            Items brought forward

ADOPTION BY EXCEPTION RESOLUTION

At this juncture the Mayor advised the meeting that, with the exception of the items identified to be withdrawn for discussion, the remaining reports, including the Committee and Officer Recommendations, will be adopted en bloc, i.e. all together.

 

Council Decision

C2009/125             Moved Councillor J Barrett-Lennard, seconded Councillor P Carter

 

That the Committee and Officer Recommendations in relation to the following agenda items be carried en bloc:

              

12.1       Finance Committee - 09/09/2020 - LIST OF PAYMENTS MADE - JULY 2020

 

12.2       Finance Committee - 09/09/2020 - FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 31 JULY 2020

 

17.1       COUNCILLORS' INFORMATION BULLETIN

CARRIED 8/0

En Bloc

 


Council                                                                                 7                                            23 September 2020

12.            Reports of Committee

12.1          Finance Committee - 09/09/2020 - LIST OF PAYMENTS MADE - JULY 2020

STRATEGIC GOAL

6. LEADERSHIP Visionary, collaborative, accountable

STRATEGIC OBJECTIVE

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    List of Payments July 2020

 

This item was considered by the Finance Committee at its meeting on 09/09/2020, the recommendations from which have been included in this report.

Council Decision and Committee Recommendation and Officer Recommendation

C2009/126             Moved Councillor J Barrett-Lennard, seconded Councillor P Carter

 

That the Council notes payment of voucher numbers M118181 – M118229, EF072890 – EF073378, DD004177 – DD004204 together totalling $7,878,881.24.

CARRIED 8/0

En Bloc

 

EXECUTIVE SUMMARY

This report provides details of payments made from the City’s bank accounts for the month of July 2020, for noting by the Council and recording in the Council Minutes.

 

BACKGROUND

The Local Government (Financial Management) Regulations 1996 (the Regulations) 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 Council.

OFFICER COMMENT

In accordance with regular custom, the list of payments made for the month of July 2020 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

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

Not applicable.

CONCLUSION

The list of payments made for the month of July 2020 is presented for information.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.


Council

9

23 September 2020

12.1

Attachment a

List of Payments July 2020

 









 


Council                                                                                 21                                         23 September 2020

12.2          Finance Committee - 09/09/2020 - FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 31 JULY 2020

STRATEGIC GOAL

6. LEADERSHIP Visionary, collaborative, accountable

STRATEGIC OBJECTIVE

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

SUBJECT INDEX

Financial Services

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 July 2020

Attachment b    Financial Activity Statement July 2020

 

This item was considered by the Finance Committee at its meeting on 09/09/2020, the recommendations from which have been included in this report.

Council Decision and Committee Recommendation and Officer Recommendation

C2009/127             Moved Councillor J Barrett-Lennard, seconded Councillor P Carter

 

That the Council receives the statutory financial activity statement reports for the period ending 31 July 2020, pursuant to Regulation 34(4) of the Local Government (Financial Management) Regulations.

CARRIED 8/0

En Bloc

 

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 31 July 2020.

 

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 27 July 2020, the Council adopted (C2007/071) the following material variance reporting threshold for the 2020/21 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 2020/21 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 only if not to do so would present an incomplete picture of the financial performance for a particular period; 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 31 July 2020

The Statement of Financial Activity (FAS), for the year to date as at 31 July 2020 shows an overall Net Current Position of $2.5M as opposed to the budget of ($7.1M). This represents a positive variance of $9.6M in the month of July. 

 

The following summarises the major YTD cash variances that appear on the face of the FAS, which in accordance with Council’s adopted material variance reporting threshold, collectively make up the above difference. Each numbered item in the lead table is explained further:

 

Description

2020/21
Actual YTD

$

2020/21
Amended
Budget YTD

$

2020/21
Amended
Budget

$

2020/21
YTD Bud Variance

%

2020/21
YTD Bud Variance

$

Change in Variance Current Month

$

Revenue from Ordinary Activities

 

 

18.99%

227,716

227,716

1.    Operating Grants, Subsidies and Contributions

692,783

247,245

4,454,801

180.20%

445,538

445,538

2.    Fees & Charges

646,385

938,444

16,398,638

(31.12%)

(292,059)

(292,059)

3.    Interest Earnings

50,488

(1,318)

1,046,684

(3930.65%)

51,806

51,806

 

 

 

 

 

 

Expenses from Ordinary Activities

 

 

22.35%

1,639,031

1,639,031

4.    Employee Costs

(2,577,538)

(2,937,021)

(33,604,206)

12.24%

359,483

359,483

5.    Materials & Contracts

(527,406)

(1,536,420)

(18,710,746)

65.67%

1,009,014

1,009,014

6.    Utilities

(165,278)

(240,931)

(2,770,956)

31.40%

75,653

75,653

7.    Other Expenditure

(40,056)

(317,127)

(5,236,779)

87.37%

277,071

277,071

 

 

 

 

 

 

 

8.    Non-Operating Grants, Subsidies and Contributions

(414,654)

838,361

29,090,854

(149.46%)

(1,253,015)

(1,253,015)

 

 

 

 

 

 

Capital Revenue & (Expenditure)

 

 

206.26%

8,948,602

8,948,602

9.    Land & Buildings

(19,670)

(1,540,580)

(17,454,059)

98.72%

1,520,910

1,520,910

Plant & Equipment

456,494

(36,362)

(2,510,340)

1355.42%

492,856

492,856

Furniture & Equipment

(3,272)

(37,667)

(461,088)

91.31%

34,395

34,395

Infrastructure

(847,662)

(2,215,938)

(33,943,507)

61.75%

1,368,276

1,368,276

10.  Repayment of Capital Lease

0

(130,474)

(521,900)

100.00%

130,474

130,474

11.  Transfer to Restricted Assets

(79,864)

(4,584)

(62,750)

(1642.24%)

(75,280)

(75,280)

12.  Transfer to Reserves

(56,783)

(1,514,893)

(20,025,834)

96.25%

1,458,110

1,458,110

13.  Transfer from Reserves

5,234,878

1,236,455

34,105,297

323.38%

3,998,423

3,998,423

 


 

Revenue from Ordinary Activities

Actual income from ordinary activities for July is $227K better than budget. The following YTD items meet the material variance reporting thresholds:

 

1.    Operating Grants, Subsidies and Contributions are $446K better than budget. The variance is mainly due to the following:

 

Revenue Code

Revenue Code Description / GL Activity

Actual YTD

$

Amended Budget YTD

$

Variance
YTD
$

Change in Variance Current Month

$

Comments

10200

Insurance Reimbursements

58,212

8,744

49,468

49,468

1st instalment of the LGISWA contribution assistance package of $58K.  Annual budget is an estimate of the insurance companies performance (and the City’s allocation thereof), and was spread evenly over 12 months.  The actual annual allocation was $128K, which is better than the full year budget estimate of $102K due to COVID-19 considerations.

10530

Community Services Administration -State Government Operating Grants

45,455

4,167

41,288

41,288

Unplanned contribution from Rio Tinto for COVID-19 community support.

11151

Airport Operations Contributions

 -

50,000

(50,000)

(50,000)

No regional Council contributions have been received as yet due to Airport development delays caused by COVID-19.

10931

Protective Burning & Firebreaks-Reserves – State Govt. Grant

249,750

 -

249,750

249,750

1st instalment received one month earlier than budgeted.

10942

Bushfire Risk Management Planning – DFES – State Govt. Grant

174,505

14,542

159,963

159,963

Entire grant received in July, budget spread over 12 months.

11501

Operations Services Works – Workers Comp. Reimbursements

39,696

5,100

34,596

34,596

Two lots of reimbursements were received from LGIS in July.  The timing of these for budget purposes is inherently difficult to predict, hence the annual budget has been spread evenly over 12 months.

 

 

 

2.    Fees & Charges is ($292K) worse than budget.  The main contributing variances are outlined in the table below:

 

Revenue Code

Revenue Code Description / GL Activity

Actual YTD

$

Amended Budget YTD

$

Variance
YTD
$

Change in Variance Current Month

$

Comments

10591

Geographe Leisure Centre - Wet Areas

136,464

241,804

(105,340)

(105,340)

Directly attributable to the COVID-19 restrictions and economic activity impacts.  At the time the initial budget estimates were made it was believed that by July much of these impacts would have abated somewhat.

11151

Airport Operations - Kiosk Income

60,567

131,982

(71,415)

(71,415)

Per above.

10808

Compliance Services - Swimming Pool Inspection Fees

1,416

85,884

(84,468)

(84,468)

Timing difference related to the issuance of Rates.  Will rectify itself in August.

 

3.    Interest Earnings at $50K actual compared to ($1K) budget is due to an error in the upload of the Interest on Reserves budget into the system. This will be rectified in the August FAS.

Expenses from Ordinary Activities

Expenditure from ordinary activities is $1.6M or 22.35% less than expected when compared to the budget for July. The following individual expense line items on the face of the financial statement have YTD variances that meet the material reporting thresholds:

 

4.    Employee Costs were $359K less than budgeted. The main variances meeting the reporting thresholds are outlined in the table below:

 

Cost Code

Cost Code Description / GL Activity

Actual YTD

$

Amended Budget YTD

$

Variance
YTD
$

Change in Variance Current Month

$

Comments

10200

Financial Services

94,978

192,159

97,181

97,181

The retirement of a long term employee was budgeted for July, but did not actually happen until August.

10521

Human Resources & Payroll

58,456

102,477

44,021

44,021

The biggest areas of underspend is Training expenses and Professional Development.  These are due to COVID reducing the amount of training available to be undertaken, and the training calendar is developed after the Performance Review process which is yet to take place.

11501

Operations Services Works

367,873

402,391

34,518

34,518

No public holidays.  Under YTD budget for long service leave and annual leave year.

 

Various Roads Works

133,227

91,645

(41,582)

(41,582)

YTD budget is based upon an equal spread across each month of the year.  In reality maintenance employee costs in the winter months (July – Oct) are higher than the remainder of the year due to Construction teams undertaking maintenance activities.

 

Various Parks & Gardens

111,885

146,121

34,236

34,236

Capital project involvement outside of usual practice.

 

Transport Fleet Management

34,128

73,224

39,096

39,096

Actual costs are under expended to budget due to various timing variances. The majority of this variance representing $26k is attributable to Fringe Benefits Tax that will be paid in four instalments starting September.  The rest of variance is impacted via periods of position vacancies; lower overtime etc.

 

5.    Materials and Contracts better than budget by $1M or 65.67%.  The table below lists the main variance items that meet the reporting thresholds:

 

Cost Code

Cost Code Description / GL Activity

Actual YTD

$

Amended Budget YTD

$

Variance
YTD
$

Change in Variance Current Month

$

Comments

Finance and Corporate Services

112,505

208,720

96,215

96,215

 

10000

Members of Council

540

32,733

32,193

32,193

The variance is due to the fact that the annual WALGA membership was anticipated to be paid upfront in July, however, this did not get processed until August.

Community and Commercial Services

23,685

175,188

151,503

151,503

 

10591

Geographe Leisure Centre

9,593

45,232

35,639

35,639

The Geographe Leisure centre was closed due to COVID and upon reopening was subject to phased restrictions which limited the attendance numbers and therefore expenditure associated with our programs and services throughout July. To date we are still limited by Phase 5 restrictions and have limited numbers in some activities affecting a slow return to business as usual and therefore planned expenditure.

10600

Busselton Jetty Tourist Park

2,109

48,418

46,309

46,309

The majority of this variance cost is the monthly management contract fee ($41,125) for the caravan park which has resulted due to a timing issue with presentation and payment of the invoice. Other expenses falling within Materials & Contracts are related to maintenance which will occur throughout the year.

Planning and Development Services

54,371

139,979

85,608

85,608

 

10931

Protective Burning & Firebreaks-Reserves

6,058

45,324

39,266

39,266

Only one fire mitigation activity has been completed in Q1 due to weather constraints. 

Procurement is underway for a comprehensive role out of fire mitigation activities to be completed in Q2 of 2020 and prior to the peak bush fire season.

Engineering and Works Services

336,844

1,011,628

674,784

674,784

 

12600

Street & Drain Cleaning

 -

36,478

36,478

36,478

Invoices for July not received and timing of expenditure.

12620 & 12621

Rural & Urban Tree Pruning

864

31,500

30,636

30,636

Expenditure timing and reduced expenditure to potentially offset May 2020 storm damage subject to DRFAWA claims.

Various

Buildings

11,710

118,423

106,713

106,713

The majority of scheduled maintenance activities to Buildings occur in the second half of the financial year; hence the year to date variance to budget (which is spread evenly).

Various

Other Infrastructure Maintenance

32,132

143,428

111,296

111,296

Expenditure for July at only 22% of the YTD budget of $143k is attributable to timing with the budget having been evenly spread across the financial year. Material & Contractor costs associated with all these areas will gradually increase as the year progresses. Additionally, a number of invoice for services rendered in July will be processed in August further contributing to the YTD variance.


 

Various

Waste services

98,708

218,184

119,476

119,476

The larger variances are due to delays processing significantly higher volumes of green waste (and therefor pay), due to more people being at home because of COVID impacts, plus two major storm events.  There were also delays in receiving invoices from various aspects of the recycling contractor.  This should somewhat reverse in August.

Various

Reserve Maintenance

7,178

164,581

157,403

157,403

Only 22% of the YTD Contractor budget was outlaid in the month of July. Costs associated with Public Open Spaces are historically low to the year to date budget in the first few month of any new financial year. These costs will begin to increase as we move towards spring and the busy summer tourism peak period.  Contract horticulture costs incurred in July have been processed in August.

5280

Transport - Fleet Management

98,847

208,991

110,144

110,144

The variance in fleet is due to both delays in supplier invoicing and the reduced maintenance activities due to lower winter utilisation.  Fuel was underspent by $45,000 due to delays in receiving invoices, lower fuel cost, lower plant utilisation due to winter and less light fleet use due to COVID.  Tyre purchase was underspent by $14,000, replacement parts/tooling were underspent by $31,000 and contractor costs were underspent by $20,000.

6.    Utilities

Costs are $76K under budget. At year ended 30 June, the June street lighting account was booked in June, rather than in July with an offsetting accrual reversal. Coupled with this, the July account has not yet been received from Synergy due to system issues at their end (along with a number of other electricity accounts). No accrual was done for July at our end to allow for this, causing what appears to be an underspend against the budget. This should rectify itself in either the August or September accounts.

 


 

7.    Other Expenditure is $277K under the budget. The main contributing items are listed below:

 

Cost Code

Cost Code Description / GL Activity

Actual YTD

$

Amended Budget YTD

$

Variance
YTD
$

Change in Variance Current Month

$

Comments

Finance and Corporate Services

12,951

58,482

45,531

45,531

 

10000

Members of Council

10,844

42,528

31,684

31,684

Councillor fees and allowances are paid one month in arrears, apart from June, where there is effectively a double up to ensure the full year figures are correct per YTD budget.  The budget however is allocated to every month, causing a variance in July, which gradually resolves by June.

Community and Commercial Services

10,875

237,445

226,570

226,570

 

10530

Community & Commercial Services Administration

 -

35,358

35,358

35,358

There were no marketing activities during July and only one sponsored event (Cabin Fever) with their invoice being presented in August. However, the annual budget allocation for events and marketing areas were incorrectly allocated over the duration of the year and hence variances have resulted. The budget monthly allocations will be rectified for subsequent months.

10567

Cinefest Oz

 -

120,000

120,000

120,000

Cinefest Oz commenced on 25 August with a different event being hosted this year due to COVID-19 restrictions, resulting in a varied payment schedule for their event funding as agreed by MERG and Council.

 


 

Non-Operating Grants, Subsidies and Contributions

8.    Non-Operating Grants, Subsidies and Contributions are below budget by ($1.3M). The recognition of revenue in this area is highly dependent on whether the actual works have been completed and funds expended. As shown below in the capital expenditure area, there is a significant underspend in capital works. Apart from the reversed accrual of the valuation of the donated fire truck of $475K (see B1025 in the table below), the negative variance indicated above is completely offset by this.

 

The following table presents a list of the main variance areas for budgeted grant or contribution funded activities:

 

Revenue Code

Revenue Code Description / GL Activity

Actual YTD

$

Amended Budget YTD

$

Variance
YTD
$

Change in Variance Current Month

$

Engineering and Works Services

414,654

(844,102)

(1,258,756)

(1,258,756)

B1025

Yallingup Coastal Bushfire Brigade – Donated Asset

(474,654)

 -

(474,654)

(474,654)

C0053

Car Parking - Rear of Hotel Site 1 – Contributions

 -

40,000

(40,000)

(40,000)

C0059

Dunsborough Yacht Club Car Park - Contributions

60,000

 -

60,000

60,000

F1022

Buayanyup Drain Shared Path – State Govt. Grant

 -

26,667

(26,667)

(26,667)

S0005

Ludlow Hithergreen Road - Second Coat Seal – MR Grant

 -

37,500

(37,500)

(37,500)

S0048

Bussell Highway – Developer Funds & Grants Utilised

 -

41,667

(41,667)

(41,667)

S0070

Peel & Queen Street Roundabout Service Relocation – MR Capital Grant

 -

120,000

(120,000)

(120,000)

S0072

Gale Road Rural Reconstruction – Federal Grant

 -

114,374

(114,374)

(114,374)

S0321

Yoongarillup Road - Second Coat Seal – MR Capital Grant

 -

88,000

(88,000)

(88,000)

S0328

Wonnerup South Road Second Coat Seal – MR Grant

 -

72,000

(72,000)

(72,000)

S0329

Georgette Street Reconstruction – MR Grant

 -

100,000

(100,000)

(100,000)

S0330

Hakea Way Asphalt Overlay – MR Grant

 -

85,000

(85,000)

(85,000)

T0020

Capel Tutunup Road – RTR Grant

 -

118,894

(118,894)

(118,894)

 


 

Capital Expenditure

9.    As at 31 July 2020, there is an underspend variance of 89.19% or $3.4M in total capital expenditure, with YTD actual at $414K against the YTD amended budget of $3.8M.  Almost all of this positive underspend variance is offset by the negative variance in Non-operating Grants, Contributions & Subsidies discussed above, plus negative variances in Transfers From Reserves related to funds held aside for these projects. The attachments to this report include detailed listings of all capital expenditure (project) items, however the main areas of YTD variance are summarised as follows:

 

Cost Code

Cost Code Description / GL Activity

Actual YTD

$

Amended Budget YTD

$

Variance
YTD
$

Change in Variance Current Month

$

Comments

Buildings

19,670

1,540,580

1,520,910

1,520,910

 

B9516

Busselton Library Upgrade

127

150,000

149,873

149,873

Project was underspent due to mid-June 2020 contract award which occurred later than expected.  Works scheduled for completion in September 2020.

B9407

Busselton Senior Citizens

 -

129,210

129,210

129,210

Works underspent during this period.  Works due for completion in September 2020.

B9591

Busselton Performing Arts Convention Centre

3,298

1,188,292

1,184,994

1,184,994

July contains the total budget commitment for consultancy services.  These funds will actually be spent evenly over the contract term.  Budget timing will be altered accordingly in subsequent reporting periods.

B9596

GLC Building Improvements

2,364

40,971

38,607

38,607

Carried over works from the prior year were budgeted to be completed throughout the year, however none of this work was commenced in July.


Plant & Equipment

(456,494)

36,362

492,856

492,856

 

B1025

Yallingup Coastal Bushfire Brigade

(474,654)

 -

474,654

474,654

Reversal of accrual of the valuation of a donated fire truck at 30/6.  Offset by negative variance in donated assets revenue contained in Non-operating Grants, Contributions & Subsidies.

Furniture & Office Equipment

3,272

37,667

34,395

34,395

 

10250

Information & Communication Technology Services

3,272

37,667

34,395

34,395

Alternative solution found for the Fully Qualified Domain Name project that resulted in a lower spend up front, the capital assigned will now include a migration to Exchange Online which was always an option within the initial project. Expect the costs to be drawn in Q4 2020.

Infrastructure By Class

847,662

2,215,938

1,368,276

1,368,276

In the first quarter of the financial year a majority of Projects are in the planning and design phase and as such minimal actual expenditure is recorded against them. Further to this Capital Projects with Civil works are commonly scheduled to be carried out later; in the drier summer construction season.  The Capital works budgets have been entered based on an even spread method and approach, not on a scheduled timing of works basis.

 

Roads

688,934

1,317,835

628,901

628,901

 

Bridges

152

143,333

143,181

143,181

 

Car Parks

26,762

111,563

84,801

84,801

 

Footpaths & Cycleways

6,087

103,485

97,398

97,398

 

Parks, Gardens & Reserves

125,533

481,815

356,282

356,282

 

Drainage

 -

13,725

13,725

13,725

 

Regional Airport & Industrial Park Infrastructure

194

44,182

43,988

43,988

Repayment of Capital Lease

10.  There is a $130K positive variance at the end of July. The leases are prepaid a month in advance, with the amount set aside in a prepaid account and then applied as a lease payment via journal in the relevant month. The journal for July missed rollover cut-off and has been processed in August.  Budget and actual will re-align for the August FAS.

Transfer to Restricted Assets

11.  There is a YTD variance in transfers to restricted assets of $75K more than amended budget. Developer contributions and bonds are inherently hard to predict and budget for. An annual amount of $50K spread evenly over 12 months was budgeted, however, over $78K was received in July.

Transfer to Reserves

12. YTD there is a variance in Transfers to Reserves of $1.5M less than amended budget. Due to timing of receipt of the initial rates instalments, the budgeted July transfers to reserves were deferred to August to assist with cash flow.

Transfer from Reserves

13.  There is a YTD variance in Transfers from Reserves of $4M more than amended budget.  Once again, due to the timing of receipts of the first rates instalments, to assist with operational cash flow requirements, $4M of the annual budgeted transfers from reserves was brought forward in July.   

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 31 July 2020, the value of the City’s invested funds totalled $65.87M, down from $70.79M as at 30 June 2020. The decrease is due to the withdrawal of $5.0M from 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) to provide funds for standard operations.

 

During the month of July, six term deposits totalling the amount of $16.5M matured. Existing deposits were renewed for a further 95 days at 0.87% on average.

 

The official cash rate in June remains steady at 0.25%. This will have a strong impact on the City’s interest earnings for the foreseeable future. Further drops are unlikely at this stage.

Chief Executive Officer – Corporate Credit Card

Details of transactions made on the Chief Executive Officer’s corporate credit card during July 2020 are provided below to ensure there is appropriate oversight and awareness.

 

Date

$ Amount

Payee

Description

16/7/2020

531.00

Local Government Management East Perth

LG Pro Membership

 

531.00

 

 

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 such risks 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 31 July 2020, the City achieved a positive net current position of $2.5M.  Many of the forecast budget positions were not actualised due to difficulties predicting outcomes in light of the COVID-19 impacts.  This mainly affected budget allocation timing.  This was right across all categories, including operating and non-operating income, operating and capital expenditure.  Despite this, in light of the positive net current position the City’s financial performance is considered satisfactory, and cash reserves remain strong.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.


Council

31

23 September 2020

12.2

Attachment a

Investment Report July 2020

 


Council

48

23 September 2020

12.2

Attachment b

Financial Activity Statement July 2020

 



















Council                                                                                 52                                         23 September 2020

17.            Chief Executive Officers Report

17.1          COUNCILLORS' INFORMATION BULLETIN

STRATEGIC GOAL

6. LEADERSHIP Visionary, collaborative, accountable

STRATEGIC OBJECTIVE

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

SUBJECT INDEX

Councillors' Information Bulletin

BUSINESS UNIT

Executive Services

REPORTING OFFICER

Reporting Officers - Various

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    Lower Vasse River Management Advisory Group Meting Notes 19 August 2020  

 

Council Decision and Officer Recommendation

C2009/128             Moved Councillor J Barrett-Lennard, seconded Councillor P Carter

That the items from the Councillors’ Information Bulletin be noted:

17.1.1      Current Active Tenders 

17.1.2      Donations, Contributions and Subsidies Fund – August 2020

17.1.3      Lower Vasse River Management Advisory Group Meeting Notes – 19 August 2020 

17.1.4      Community Assistance Program 

CARRIED 8/0

En Bloc

 

EXECUTIVE SUMMARY

This report provides an overview of a range of information that is considered appropriate to be formally presented to the Council for its receipt and noting. The information is provided in order to ensure that each Councillor, and the Council, is being kept fully informed, while also acknowledging that these are matters that will also be of interest to the community.

 

Any matter that is raised in this report as a result of incoming correspondence is to be dealt with as normal business correspondence, but is presented in this bulletin for the information of the Council and the community.

INFORMATION BULLETIN

17.1.1      Current Active Tenders 

 

Note: Information in italics has previously been provided to Council, and is again provided for completeness.

 


 

RFT03/20 CONSTRUCTION OF BORE(S) – DUNSBOROUGH NON-POTABLE WATER PROJECT

·    Requirement –  to engage an adequately skilled and experienced Contractor to:

a)    construct, test and equip exploration, production and/or monitoring bore(s) on Mewitt Road, Quindalup (defined in the Request for Tender as the Bore Site) as part of the City’s Dunsborough Non-Potable Water Network Project;

b)    comply with DWER requirements in relation to a Hydrogeological Assessment Report for these bores (as specified in the Drilling Licence); and

c)    if required, provide the City with a report on the beneficial use (availability, volume, quality and sustainability) of groundwater available for extraction from this bore(s).

·    A Request for Tender was advertised on 18 July 2020 with a closing date of 20 August 2020.  The closing date was extended to 25 August 2020.

·    Two submissions were received and are currently being evaluated.

·    The value of the contract is expected to exceed the CEO’s current delegation under Delegation DA 1-07.

·    The evaluation process has been completed and officers are working to present a (late) report to the Council’s 23 September 2020 meeting.

 

RFT06/20 BUSSELTON FORESHORE EXERCISE EQUIPMENT – DESIGN, FABRICATION AND INSTALLATION

·    Requirement – the design, fabrication and installation of six (6) exercise equipment stations at the Busselton Foreshore. 

·    A Request for Tender was advertised on 9 May 2020 with a closing date of 26 May 2020. 

·    The value of the contract is not expected to exceed the CEO’s current delegated authority under Delegation DA 1-07 and it is expected that a contract will be entered into during July/August 2020.

·    One submission was received and is currently being evaluated.

·    Evaluation has been completed and a recommendation made to the CEO to enter into a contract with Phase 3 Landscape Constructions Pty Ltd.

 

EOI02/20 CONSTRUCTION OF BUSSELTON PERFORMING ARTS AND CONVENTION CENTRE

·    Requirement – the construction of the Busselton Performing Arts and Convention Centre.

·    An Expression of Interest was advertised on 11 July 2020 with a closing date of 11 August 2020.

·    Seven submissions were received and are currently being evaluated.

·    The process for making a preliminary selection among prospective tenderers has been delegated to the CEO pursuant to delegation DA 1 - 08.

·      A recommendation has been made to the CEO to shortlist seven respondents as acceptable tenderers.  The proposed date for issue of the Request for Tender is currently unknown as the City has requested an extension to the Federal Government funding agreement.

 

PQS05/20 BUSSELTON CBD PAVING UPGRADE

·    Requirement – the provision of goods and services relating to the installation of large format paving within the Busselton CBD at various locations, to be completed in stages. 

·    A Request for Applications to Join a Panel of Pre-Qualified Suppliers was advertised on 26 August 2020 with a closing date of 10 September 2020. 

·    In accordance with delegation DA 1-10 the CEO has authority to establish the panel and to accept applications to join the panel.

·    It is expected that the panel will be established by the CEO in late September 2020.


 

17.1.2      Donations, Contributions and Subsidies Fund – August 2020

 

The Council allocates and annual budget allowance to the Donations, Contributions and Subsidies Fund. This is provided such that eligible groups and individuals can apply for and receive sponsorship to assist them in the pursuit of endeavors that bring direct benefit to the broader community.

 

Allocation of the funds is delegated to the Chief Executive Officer, in accordance with the published guidelines and funding availability. 

 

Four applications were supported in August 2020, totalling $900.00, as outlined in the table below:

 

Recipient

Purpose

Amount

Cornerstone Christian College

Contribution towards end of year graduation award ceremonies

$100 for primary and $200 secondary school

$300.00

GP Down South

Jetty Passes for Mental Health week walk along the jetty

$200.00

Busselton Senior High School

Contribution towards awards for Year 12 end of year graduation ceremony

$200.00

Cape Naturaliste College

Contribution towards awards for Year 12 end of year graduation ceremony

$200.00

Total

$900.00

17.1.3      Lower Vasse River Management Advisory Group Meeting Notes – 19 August 2020 

 

In accordance with the terms of reference for the Lower Vasse River Management Advisory Group, the notes from the meeting held on 19 August 2020 are attached.

17.1.4      Community Assistance Program 

 

The Council allocates an annual budget allowance to the Donations, Contributions and Subsidies(Community Bids). In May 2020, Council refocused the City’s annual Community Bids funding to Community Assistance Program for 2020/21 to provide eligible community and sporting organisations funding for recovery initiatives that have a social and economic stimulus. Allocation of funds is delegated to the Chief Executive Officer, in accordance with Council resolution C2005/133.

 

Three applications were supported in August 2020, totalling $25,740; applications as outlined in the table below:

 

ORGANISATION

PROJECT TITLE

RECOMMENDED FUNDING

Dunsborough (Junior) Soccer Club

COVID-19 Assistance

$3,616

Barnard Park Sports Association

Life support for BPSA

$5,685

Busselton Football & Sportsman’s Club, Busselton Masters AFL Club, Busselton Dunsborough Junior Football Association

 

$17,502

 

TOTAL

$25,740

 

A total of $67,000 has been awarded to date.


Council

55

23 September 2020

17.1

Attachment a

Lower Vasse River Management Advisory Group Meting Notes 19 August 2020

 







 

 


Council                                                                                 65                                         23 September 2020

ITEMS TO BE DEALT WITH BY SEPARATE RESOLUTION (WITHOUT DEBATE)

12.3          Finance Committee - 09/09/2020 - BUDGET AMENDMENT REQUEST / REVIEW - ENGINEERING AND WORKS SERVICES - SEPTEMBER 2020

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

Engineering Management Accountant - Stephen Wesley

Manager Financial Services - Paul Sheridan

AUTHORISING OFFICER

Director, Engineering and Works Services - Oliver Darby

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    EWS - Budget Amendments Table - September 2020

 

This item was considered by the Finance Committee at its meeting on 09/09/2020, the recommendations from which have been included in this report.

 

Council Decision and Committee Recommendation and Officer Recommendation

C2009/129             Moved Councillor L Miles, seconded Deputy Mayor K Hick

 

That the Council endorse the requested budget amendments outlined in this report recognising the additional income received in grant funding and draw down on reserves ($663,500) for the following projects:

1.         State Blackspot Project – Kaloorup Road Stage 1

2.         Road Cyclist Safety Innovation

3.         Peel & Queen Street Roundabout & Service Relocations

4.         Geographe Bay Road Quindalup

5.         Wonnerup South Road - Reconstruct and Widening (narrow seal)

 

The budget amendment, as outlined within attachment A and in accordance with section 6.8(1) of the Local Government Act 1995, results in a $0 net impact on the 2020/21 annual budget.

CARRIED 8/0

BY ABSOLUTE MAJORITY

EXECUTIVE SUMMARY

This report seeks Council approval of budget amendments as detailed in this report. Adoption of the Officer Recommendation will result in a zero impact to the City’s budgeted net current position.

BACKGROUND

In accordance with section 6.8(1) of the Local Government Act 1995, a local government is not to incur expenditure from its municipal fund for an additional purpose except where the expenditure:

·        is incurred in a financial year before the adoption of the annual budget by the local government;

·        is authorised in advance by Council resolution - absolute majority required;

·        is authorised in advance by the Mayor in an emergency.

Approval is therefore sought for the budget adjustments detailed in the attachment for the reasons specified.

OFFICER COMMENT

Council adopted its 2020/2021 municipal budget on Monday 27 July 2020 with a balanced budget position. Since then, officers have identified budgets that require adjustment. It is good management practice to revise the adopted budget when it is known that circumstances have changed. In keeping with this practice, budgets are reviewed on a monthly basis.

 

Amendments to the budget are categorised into the three key types as listed below:

i.     Adjustments impacting the budget balance or net position of the City; relatively uncommon type.

ii.    Adjustments with no impact on the budget balance; most common amendment type.

iii.   Adjustments to transfer budget between capital and operating undertakings; relatively uncommon type.

 

Officers have reviewed the adopted budget for the month of August 2020 and subsequently recommend alterations to the budget as tabled below.

 

i.     Adjustments impacting the budget balance.

 

This section identifies items which either increase or decrease the 2020/2021 budgeted operating position. There are no budget adjustment items requiring Councils approval of this type.

 

ii.    Adjustments with no impact on the budget balance.

 

There are five budget amendment items of this type detailed below. They are included in the corresponding budget table as an attachment to this report. The net effect on the budget position is zero. These items, if approved will however result in an additional $663,500 in reserve transfers and an additional drawn down of $448,000 from the City’s Roads to Recovery Program.

  

These adjustments are where new expenses are matched with new grants or contributions or where reserve offsets are transferred between projects. In some instances it is where requests are made to draw down additional budget from specific reserves for various reasons, or where expenses are reallocated within business units or between projects to meet revised needs.

 

1.    State Blackspot Project – Kaloorup Road Stage 1                                                   Cost Code NEW            

 

On the 24th July 2020, the Regional Road Group members were advised that the Shire of Harvey was postponing their State Blackspot project, forfeiting the grant valued at $267,000.

 

The Shire of Bridgetown Greenbushes, being next on the Blackspot list of prioritised and assessed projects, did not elect to take up the offer for the extra funding.

 

State Blackspot grants are provided on a 2/3rd-1/3rd basis; thus the grantee must co-contribute 1/3rd of the funding from their own-source; the amount in this case totals $133,500.

 

The City of Busselton, being next in line, has an application to widen a section of Kaloorup Road via the construction of sealed shoulders. The City communicated its intention to accept the funding.

 


 

This project will however need to be staged over two financial years as the total estimated cost stands at $1.248m. By accepting this grant, a portion of the road (western end) representing approximately 32% of the project scope can be brought forward and delivered this financial year. The project will be valued at $400,500 comprising $267,000 from Main Roads Blackspot funding pool and $133,500 from the City of Busselton. The City’s Road Asset renewal reserve through appropriate financial management has sufficient funding available to co-fund this unexpected project.

 

By accepting this grant, the City will automatically quality for the remaining State Blackspot monies in the following year; subsequently prioritised above the Shire of Harvey and the Shire of Bridgetown Greenbushes.

 

Based on the above, approval is sought by Council to add this to the 2020/21 budget and to draw down its co-contribution valued at $133,500 from the Road Asset Renewal Reserve.

 

2.    Road Cyclist Safety Innovation                                                                                     Cost Code NEW

 

The City has been successful in securing $193,954 in grant funding from the Australia Government Office of Road Safety via the Road Safety Innovation Fund. These monies will be paid over a period of three financial years in instalments as shown below.

 

Year 1 - 2020/21 =           $97,985

Year 2 - 2021/22 =           $47,985

Year 3 – 2022/23 =          $47,984

TOTAL                                 $193,954

 

The Road Safety Innovation Fund is providing $12 million over four years from 2019–20 to support road safety research and the development of new road safety technologies. The fund targets innovative projects addressing priority areas which include improving road safety in regional and remote areas, reducing driver distraction and drug driving, improving safety for vulnerable road users and supporting road safety research and initiatives specific to the Australian context. Innovation will take the form of road safety management initiatives, new technologies or products and delivery techniques or research that better informs policy development. These initiatives will support the Safe System approach into making road safety ‘business as usual’ for all road users.

 

The grant has been awarded to the City to install and research a system for activating driver awareness in lieu of road cyclists sharing the road. It will also evaluate and measure if it increases cyclist’s confidence in feeling safe while sharing the road with vehicles. A pilot trial to be established this financial year will compare the effectiveness of two types of signage systems; one being of the traditional static type “cyclist ahead” signage system while the other being of a more innovative electronic based automated  “cyclist ahead” signage system. The project will obtain data from cyclists and road users about their experiences. In selecting the locations of these signs, data will be obtained from cyclists on routes that don’t currently feature any type of cyclist safety infrastructure.

 

As part of the grant agreement, the City will be required to co-contribute to the initiative.

 

For the first year of the grant, the co-contribution by the City will be in the form of in-kind City Staff labour; an estimated $15,000 for the purchase and installation of both types of signs, inclusive of traffic management costs and $5,000 for an education and awareness program.

 

Based on the above, Council approval is sought to draw $20,000 from the Other Infrastructure Reserve, being the City’s contribution towards the project for the first year. If the system is found to be beneficial, it will be installed in four more locations across the City over the following two financial years.

 

3.    Peel & Queen Street Roundabout & Service Relocations                                      Cost Code S0070

 

The City received a Regional Road Group Grant in 2019/20 to a value of $500,000 with a City co-contribution of $250,000 towards these same works. The total budget value therefore being $750,000.

 

In the 2019/20 financial year, the City was able to claim 40% of this grant representing $200,000 in advance of works being carried out. These funds have subsequently been restricted by the City.

 

At 30 June, due to an administrative error, this budget was not correctly re-listed. The City also received a further 2020/21 allocation from Main Roads for $300,000 with a City co-contribution of $150,000 towards these same works.

 

In summary, the existing budget of $450,000 for the Peel & Queen Street Roundabout / Service Relocation project (Cost Code S0070) is currently understated by $750,000. This budget should be $1,200,000 comprising $800,000 in Main Roads Regional Road Group Grant and $400,000 in City funding.

 

Based on the above, approval is sought from Council to bring the previous year’s 2019/20 budget back onto the 2020/21 budget.

  

In order to achieve this, $250,000 needs to be drawn down from the City’s Road Asset Renewal Reserve that ordinarily would have already been drawn down had the budget carry over been made.

 

Further to the above, there needs to be a corresponding increase to the expenditure budget of $750,000 and an increase to the Grant Revenue Budget of $300,000.

 

4.    Geographe Bay Road, Quindalup                                                                                Cost Code W0121         

A $730,000 budget has been adopted by Council to reconstruct a 1.6km section of Geographe Bay Road in Quindalup that consists of road seals that are between 40-45 years of age. The original estimate was based on a preliminary evaluation and site walk through and considered part complete road reconstruction and part road re-seals. 

 

Upon further and more detailed investigation, the scope of works has been increased requiring a full reconstruction for the project length, with the project now estimated to cost in the order of $990,000; an increase of $260,000. Some parts of the road were originally earmarked for a more basic asphalt overlay but due in part to infill sewer works that have occurred in the area recently and the overall condition of the road generally, it makes far better sense to reconstruct a larger section of this road than was previously determined. It has been calculated that instead of a 50/50 asphalt overlay and reconstruction this has been revised to a 15/85 asphalt overlay to reconstruction. These works will also involve improvements to drainage and there will be an increased number of property reinstatements. Ultimately, the increased reconstruction scope will be more costly but will represent better value to the ratepayer over the longer term.       

 

Based on the above, approval is sought by Council to draw an additional $260,000 from the Road Asset Renewal Reserve.

 

With all the above adjustments being made, a total of $643,000 will be transferred from the Road Asset Renewal Reserve leaving a balance of $477,331 in the reserve.


 

5.    Wonnerup South Road - Reconstruct and Widening (narrow seal)     Cost Code T0019

 

The Wonnerup South Project consists of approximately five kilometres of reconstruction and widening of an existing poor condition narrow sealed country road. Over the last five years, the City has had a program whereby it has targeted the City’s narrow sealed country roads to improve their safety and reconstruct before road failure. 

 

On this particular project, due to winter weather, works on this road ceased in early June at a point to avoid disruption through the winter season. Unfortunately, due to an administrative error through the budget process, this project budget was not correctly re-budgeted and funds to complete the full length of Wonnerup South Road were omitted. In order to complete the project, an amount of $448,000 will be required.

 

The funds from this project will come from the City’s Roads to Recovery 5 year program (2020-2025) balance. After financial year-end balancing of the program, there remains $513,670 in funding available. To this end, Council’s approval is sought to draw down an additional $448,000 from the available Roads to Recovery allocation.

 

iii.   Transfers between capital and operating budget.

 

This section is intended to identify any items which reallocate funds between the Capital Budget and Operating Budget. These items do not change the overall budget. There are no items detailed in the attachment requiring Council approval in this period.

 

Net Budget Position

After making the above adjustments, the budget position remains unchanged from budget adoption. Adjustments made to the Municipal Cash Budget is nil.

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

A summary of the financial implications of these recommendations is shown in the table below.  Corresponding details required in order to process the accounting changes in the budget are contained within the table attachment to this report.


 

Reference

Description

Project Code

Additional External Revenue

Utilisation of Revenue Received in Prior Years

Additional Expenditure

Impact on Budget

Impact on Reserves

1

State Blackspot Project – Kaloorup Road Stage 1

NEW

267,000

 -

400,500

 -

(133,500)

2

Road Cyclist Safety Innovation

NEW

97,985

 -

117,985

 -

(20,000)

3

Peel & Queen Street Roundabout & Service Relocations

S0070

300,000

200,000

750,000

 -

(250,000)

4

Geographe Bay Road Quindalup

W0121

 -

 -

260,000

 -

(260,000)

5

Wonnerup South Road - Reconstruct and Widening (narrow seal)

T0019

448,000

 -

448,000

 -

 -

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.

 


Council

66

23 September 2020

12.3

Attachment a

EWS - Budget Amendments Table - September 2020

 

 


Council                                                                                 70                                         23 September 2020

13.            Planning and Development Services Report

Nil


 

14.            Engineering and Work Services Report

Nil


 

15.            Community and Commercial Services Report

Nil


 

16.            Finance and Corporate Services Report

Nil


Council                                                                                 71                                         23 September 2020

18.            Motions of which Previous Notice has been Given

Nil

 

 

19.            urgent business

Nil


Council                                                                                 73                                         23 September 2020

20.            Confidential Reports  

20.1          Airport Advisory Committee - 09/09/2020 - INTERNATIONAL ALTERNATE: BUSSELTON MARGARET RIVER AIRPORT

STRATEGIC GOAL

5. TRANSPORT Smart, connective and accessible

STRATEGIC OBJECTIVE

5.1 Public transport services that meet the needs of the community.

SUBJECT INDEX

Airport Services

BUSINESS UNIT

Commercial Services

REPORTING OFFICER

Project Officer Contracts and Tendering - Ben Whitehill

Manager, Commercial Services - Jennifer May

AUTHORISING OFFICER

Director, Community and Commercial Services - Naomi Searle

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

Nil

 

This item is confidential in accordance with section 5.23(2)(c) of the Local Government Act 1995, as it contains information relating to a contract entered into, or which may be entered into, by the local government and which relates to a matter to be discussed at the meeting.

 

This item was considered by the Airport Advisory Committee at its meeting on 09/09/2020, the recommendations from which have been included in this report.

 

Council Decision

C2009/130             Moved Deputy Mayor K Hick, seconded Councillor P Cronin

 

That the meeting be closed to the members of the public to discuss this item which is confidential for the reasons as shown.

CARRIED 8/0

 

5.47pm:         At this time, Council moved into closed session and the live streaming of the meeting ceased. 

 

Council Decision and Committee Recommendation and Officer Recommendation

C2009/131             Moved Councillor P Cronin, seconded Councillor P Carter

 

That the Council endorses the Officer Recommendation contained within the Officer Comment of the report.

CARRIED 8/0

 

Council Decision

C2009/132             Moved Councillor P Carter, seconded Councillor J Barrett-Lennard

 

That the Meeting be re-opened to the members of the public.

CARRIED 8/0

 

5.48pm:         At this time, the meeting was re-opened to members of the public and the live streaming of the meeting was resumed.

21.            Closure

The Presiding Member closed the meeting at 5.49pm.

 

 

 

 

 

THESE MINUTES CONSISTING OF PAGES 1 TO 73 WERE CONFIRMED AS A TRUE AND CORRECT RECORD ON Wednesday, 14 October 2020.

 

DATE:____________________ PRESIDING MEMBER:________________________________