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 24 March 2021

TABLE OF CONTENTS

ITEM NO.                                        SUBJECT                                                                                                                              PAGE NO.

1....... Declaration of Opening / aCKNOWLEDGEMENT OF COUNTRY / ACKNOWLEDGEMENT OF Visitors / DISCLAIMER / NOTICE OF RECORDING OF PROCEEDINGS. 2

2....... Attendance. 2

3....... Prayer. 2

4....... Application for Leave of Absence. 2

5....... Disclosure Of Interests. 2

6....... Announcements Without Discussion.. 2

7....... Question Time For Public. 2

8....... Confirmation and Receipt Of Minutes. 2

Previous Council Meetings. 2

8.1          Minutes of the Council Meeting held 10 March 2021. 2

Committee Meetings. 2

8.2          Minutes of the Finance Committee Meeting held 10 March 2021. 2

9....... RECEIVING OF Petitions, Presentations AND DEPUTATIONS. 2

10..... QUESTIONS BY MEMBERS OF WHICH DUE NOTICE HAS BEEN GIVEN (WITHOUT DISCUSSION). 2

11..... Items brought forward.. 2

ADOPTION BY EXCEPTION RESOLUTION.. 2

12.2        Finance Committee - 10/3/2021 - FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 31 JANUARY 2021. 2

14.1        RFT 01-21 MITCHELL PARK CIVIL & LANDSCAPING WORKS. 2

16.2        LONG TERM FINANCIAL PLAN 2021/22 - 2030/31. 2

17.1        COUNCILLORS' INFORMATION BULLETIN.. 2

ITEMS TO BE DEALT WITH BY SEPARATE RESOLUTION (WITHOUT DEBATE). 2

12.1        Finance Committee - 10/3/2021 - LIST OF PAYMENTS MADE - JANUARY 2021. 2

12.3        Finance Committee - 10/3/2021 - 2020/21 BUDGET REVIEW... 2

15.1        COMMUNITY SPORT AND RECREATION FACILITIES FUND - SMALL GRANTS ROUND FEBRUARY 2021. 2

16.1        CONSIDERATION OF THE CONDUCT OF LOCAL GOVERNMENT ELECTION: 16 OCTOBER 2021. 2

18..... Motions of which Previous Notice has been Given.. 2

19..... urgent business. 2

20..... Confidential Reports. 2

21..... Closure. 2

 


Council                                                                                      6                                                                     24 March 2021

 

MINUTES

 

MINUTES OF A Meeting of the Busselton City Council HELD IN THE Council Chambers, Administration Building, Southern Drive, Busselton, ON 24 March 2021 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 5.30pm.

The Presiding Member noted this meeting is held on the lands of the Wadandi people and acknowledged them as Traditional Owners, paying respect to their Elders, past and present, and Aboriginal Elders of other communities who may be present.

 

2.               Attendance

Presiding Member:

Members:

 

Cr Grant Henley     Mayor

Cr Kelly Hick             Deputy Mayor

Cr Sue Riccelli

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

Mr Dave Goodwin, Acting 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:

 

Nil

 

 

Media:

 

0

 

Public:

 

0

 

3.               Prayer

The prayer was delivered by Pastor Tony Peak of the Abundant Life Centre.

 

4.               Application for Leave of Absence 

Nil

 

 

5.               Disclosure Of Interests

The Mayor noted that declarations of impartiality interest had been received from:

 

·         Cr Paul Carter in relation to Agenda Item 12.1 ‘Finance Committee – 10/03/2021 - List of Payments Made – January 2021’

 

·         Mr Mike Archer, Chief Executive Officer, in relation to Agenda Item 15.1 ‘Community Sport and Recreation Facilities Fund - Small Grants Round February 2021’

 

·         Cr Paul Carter in relation to Agenda Item 15.1 ‘Community Sport and Recreation Facilities Fund - Small Grants Round February 2021’

 

The Mayor advised that, in accordance with regulation 22(2)(a) of the Local Government (Model Code of Conduct) Regulations 2021, these declarations would be read out immediately before Items 12.1 and 15.1 were discussed.

 

6.               Announcements Without Discussion

Announcements by the Presiding Member

 

The Mayor noted that he attended a thank you function for the departing crew members of the large air tankers and also Busselton’s local SES branch for their roles in the Wooroloo fires and the bushfires over the summer, and acknowledged the credit they brought upon themselves and their organisation. The Mayor also paid due regard to the staff at the Busselton Margaret River Airport who did wonderful service which was extremely beneficial to the fire efforts in those catastrophic events.


 

7.               Question Time For Public

Response to Previous Questions Taken on Notice

 

The following question were taken on notice by the Council at the 10 March 2021 Ordinary Council Meeting. The Mayor advised the responses would be tabled in the minutes and provided to the questioners.

 

7.1             Mr Keith Simms

 

Question

What percentage of the community has been consulted about the performing arts centre?

 

Response

(Cr Ross Paine)

In relation to the 9% the Bay to Bay Action Group refer to as wanting the Performing Arts Centre, this relates to the 2017 Community Satisfaction Survey distributed to 4,000 randomly selected ratepayers and also available for opt-in participants. This was undertaken by an independent consultant, Catalyse. It was statistically valid with 495 randomly selected residents responding, thereby reducing the sampling error to 4.4% at the 95% confidence interval. As part of this survey, respondents were invited to indicate the project most important to them. As a stand-alone project, the construction of a performing arts centre listed 4th behind the Busselton Margaret River Airport Project, the City Centre Road Upgrade and revitalisation of the Vasse River, all of which have been advanced in response to this prioritisation. While results of the survey came from the sample of 495 responses received, it is important to understand that a 95% confidence interval means that there is only a 1 in 20 chance the true full population value at the time would not have been within the reported error range of 4.4% (4.4% being the worst-case error for any single question).

 

Looking specifically at formal consultation initiatives where there is the ability to quantify circulation and participation numbers, the City estimates it has consulted with over 9,000 people over the last 13 years. This is in addition to the hundreds of ratepayers and residents that Councillors have spoken to on the development - answering questions, listening to feedback and discussing pros and cons. 

 

 


 

7.2             Mr Tony Plumb

 

Question

                   Has the plan for the new sporting fields in Dunsborough been adopted by Council?

 

Response

Council endorsed the Sport and Recreation Facilities Strategy in May 2020. This detailed that priority number 1 is the construction of Dunsborough Lakes Sports Precinct (DLSP) and includes four rectangle fields, two cricket pitches, four multi-use outdoor courts, a pavilion and amenities. It also identified the site was suitable for future growth including the best location for future indoor courts.

 

At a Council briefing on the DLSP Masterplan in June 2020, Councillors supported the masterplan and funding strategy and subsequently followed this up with the endorsement of the DLSP Community Sport and Recreation Facilities Fund application on 9 September 2020 (Council Decision C2009/107). The CSRFF application was successful and the State Government is partly funding this project in line with the masterplan.

 

Question Time for Public

 

Nil

 

 

8.               Confirmation and Receipt Of Minutes

Previous Council Meetings

8.1             Minutes of the Council Meeting held 10 March 2021

Council Decision

C2103/047              Moved Councillor K Hick, seconded Councillor K Cox

That the Minutes of the Council Meeting held 10 March 2021 be confirmed as a true and correct record.

CARRIED 9/0

 

Committee Meetings

8.2             Minutes of the Finance Committee Meeting held 10 March 2021

Council Decision

C2103/048              Moved Councillor J Barrett-Lennard, seconded Councillor P Carter

That the Minutes of the Finance Committee Meeting held 10 March 2021 be noted.

CARRIED 9/0

 


 

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

C2103/049              Moved Councillor L Miles, seconded Councillor P Carter

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

12.2        Finance Committee - 10/3/2021 - FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 31 JANUARY 2021

14.1        RFT 01-21 MITCHELL PARK CIVIL & LANDSCAPING WORKS

16.2        LONG TERM FINANCIAL PLAN 2021/22 - 2030/31

17.1        COUNCILLORS' INFORMATION BULLETIN:

 


Council                                                                                      25                                                                  24 March 2021

 

12.2           Finance Committee - 10/3/2021 - FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 31 JANUARY 2021

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 budgets, strategies, plans and policies (excluding local planning policies); funding, donations and sponsorships; reviewing committee recommendations

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   Financial Activity Statement - January 2021

Attachment b    Investment Report - January 2021

 

This item was considered by the Finance Committee at its meeting on 10/3/2021, the recommendations from which have been included in this report.

 

Council Decision and Committee Recommendation and Officer Recommendation

C2103/050              Moved Councillor L Miles, seconded Councillor P Carter

That the Council receives the statutory financial activity statement reports for the period ending 31 January 2021, pursuant to Regulation 34(4) of the Local Government (Financial Management) Regulations.

CARRIED 9/0

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 January 2021.

 

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 January 2021

The Statement of Financial Activity (FAS) for the year to date (YTD) as at 31 January 2021 shows an overall Net Current Position of $22.3M as opposed to the budget of $16.8M. This represents a positive variance of $5.4M YTD.  This variance increased by $1.7M from $3.7M at the end of December.  

 

The following table summarises the major YTD 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 this lead table is explained further in the report.

 

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

 

0.93%

633,876

(245,524)

1.    Other Revenue

352,322

222,384

424,730

58.43%

129,938

121,018

 

 

 

 

 

 

 

Expenses from Ordinary Activities

 

7.35%

3,459,501

(254,367)

2.    Materials & Contracts

(7,752,032)

(10,061,844)

(18,067,582)

22.96%

2,309,811

234,866

3.    Utilities

(1,346,363)

(1,620,817)

(2,770,956)

16.93%

274,454

64,578

4.    Other Expenditure

(1,436,163)

(2,499,130)

(5,236,779)

42.53%

1,062,967

(11,238)

 

 

 

 

 

 

 

5.    Non-Operating Grants, Subsidies and Contributions

4,197,248

7,900,333

34,437,199

(46.87%)

(3,703,085)

109,698

 

 

 

 

 

 

 

Capital Revenue & (Expenditure)

 

10.83%

2,871,972

2,257,651

6.    Land & Buildings

(2,632,607)

(3,541,859)

(17,454,059)

25.67%

909,252

209,964

Plant & Equipment

(871,455)

(2,028,534)

(2,510,340)

57.04%

1,157,079

628,738

Furniture & Equipment

(201,660)

(443,088)

(461,088)

54.49%

241,428

118,406

Infrastructure

(9,987,769)

(19,482,767)

(40,004,996)

48.74%

9,494,998

368,334

7.    Proceeds from Sale of Assets

141,641

546,500

581,500

(74.08%)

(404,859)

(93,285)

8.    Proceeds from New Loans

0

7,700,000

7,700,000

(100.00%)

(7,700,000)

(200,000)

9.    Repayment of Capital Lease

(319,152)

(391,424)

(521,900)

18.46%

72,272

130,474

10.  Advances to Community Groups

0

(200,000)

(200,000)

100.00%

200,000

200,000

11.  Transfer to Restricted Assets

(2,661,247)

(32,088)

(62,750)

(8193.59%)

(2,629,159)

(18,055)

12.  Transfer from Restricted Assets

1,524,426

0

2,807,074

100.00%

1,524,426

860,303

 


Revenue from Ordinary Activities

In total, revenue from Ordinary Activities is $634K, or 0.93%, ahead of budget YTD.  The only material variance item contributing to this is:

 

1.      Other Revenue

Ahead of YTD budget by $130K, or 58.43%, mainly due to the items listed in the table below:

Revenue Code

Revenue Code Description

Actual YTD

$

Amended Budget YTD

$

Variance
YTD
$

Variance
YTD
%

Change in Variance Current Month

$

Community and Commercial Services

35,117

3,745

31,372

837.69%

7,484

10591

Geographe Leisure Centre – LSL Contributions from other LG’s

18,132

 -

18,132

100.00%

 -

Long Service Leave entitlements accrued can be transferred between local governments. This receipt was budgeted for in June, however it was received earlier than expected.

10625

Art Geo Administration – Sale of Artworks

14,772

 -

14,772

100.00%

7,553

The distribution of the proceeds of artwork sales on behalf of the artists, is done in the month following the sales, after the monthly reconciliation process.

Planning and Development Services

155,789

82,103

73,686

89.75%

76,524

10925

Preventative Services – CLAG – Sundry Income

77,284

2,380

74,904

3147.22%

76,691

Due to the much earlier and more significant onset of the Ross River Virus threat, extra chemical applications were required. Permission was received from the Department of Health to draw extra trust funds for these purposes.

10970

Parking Control – Parking Fines & Costs

22,658

35,000

(12,342)

(35.26%)

807

Budgeting for this is always done on a simple historical trend basis, and is never a targeted revenue source.  It is down on budget due to the enforcement team being temporarily understaffed.

Engineering and Works Services

137,203

113,667

23,536

20.71%

38,763

11107

Engineering Services Design – LSL Contributions from other LG’s

14,475

 -

14,475

100.00%

 -

Long Service Leave entitlements accrued can be transferred between local governments. At the time of budgeting it was not known that the City would be employing a person for whom a LSL entitlement would be transferred.

12642

NCC Standpipe – Sale of Water

2,470

14,581

(12,112)

(83.06%)

(2,083)

The consumption and associated sale of water from this facility has not been as high as originally forecast.

G0030

Busselton Transfer Station – Sale of Scrap Materials

79,571

58,563

21,008

35.87%

7,674

There was an initial spike in sales compared to the timing of the budget, and better than predicted prices received for scrap metal. However, it is predicted that this will slow somewhat as the financial year progresses.

 

 

 

 

 

 

Expenses from Ordinary Activities

Expenditure from ordinary activities is $3.5M, or 7.35%, less than expected when compared to the budget YTD as at January. The following individual expense line items on the face of the financial statement have YTD variances that meet the material reporting thresholds:

 

2.      Materials and Contracts

Better than budget by $2.3M, or 22.96%. The table below lists the main items contributing to this variance:

Cost Code

Cost Code Description

Actual YTD

$

Amended Budget YTD

$

Variance
YTD
$

Variance
YTD
%

Change in Variance Current Month

$

Finance and Corporate Services

1,377,123

1,399,385

22,262

1.6%

(105,742)

10151

Rates Administration

140,945

183,987

43,042

23.4%

21,517

The variance is predominantly due to the underspend in consultancy. This budget was for the Rating Review Project, funded by reserves. The project has been delayed due to resourcing issues in the Rates Team, plus pending communications with the Minister regarding Rates reviews that could have significant impact on the scope of the project.  Unspent funds will remain carried forward in the reserve to fund the revised project.

10200

Financial Services

33,846

47,717

13,871

29.1%

4,936

Due mainly to a reduction in bank fees that were budgeted at a higher amount, plus none of the consultancy budget has been used YTD.  This will potentially be used later in the financial year in relation to adoption of new accounting standards, plus updates to the Long Term Financial Plan model.

10250

Information & Communication Technology Services

885,683

776,867

(108,816)

(14.0%)

(94,928)

·        Software licences – Our licences are on track to go over budget this year with the addition of some unplanned software; this should be balanced elsewhere. The payment curve for this is not smooth and we have recently paid some large invoices including T1.

·        Photocopying – As mentioned in Customer Service below, the printer costs are routing through this account hence the budget overspend.

·        GIS costs – We had planned to use a new image provider at a reduced cost, unfortunately they could not provide what was agreed upon and we had to stick with using Landgate, this will be adjusted for next budget.

10360

Customer Services

14,362

27,852

13,490

48.4%

1,707

·        Photocopying – The Finance team going paperless has had a significant impact on our paper spend, especially for coloured paper. In addition, an arrangement has been made with the Executive Assistants for auditing of the stationery supplies in their departments, so ordering has more closely aligned to needs rather than maintaining large stores.

·        Computer Consumables – Historically printer cartridges etc came from this bucket. With the adoption of more printers using a full supply contract this account is not being utilised. We still do order some cartridges manually but the number is heavily reduced. This will be reviewed during the upcoming budget considerations for 21/22 to get a better idea of actual spend.

10500

Legal & Compliance Services

63,882

35,805

(28,077)

(78.4%)

(9,149)

Greater than expected spend of external legal representation (largely due to increase in prosecutions/ compliance action plus a Supreme Court matter). It was acknowledged when the legal budget was set last year that a transfer from the legal reserve may be required.

10521

Human Resources & Payroll

20,424

40,791

20,367

49.9%

2,213

The variance is timing related, with consultancy funds related to the organisational staff survey yet to be expended. Procurement is currently in progress with expenses expected to be incurred by April 2021.

10616, 10617 & 10618

Aged Housing

41,019

82,607

41,588

50.3%

7,412

Lower than expected maintenance costs to the end of the reporting period. Less reactive maintenance for FY to date.

Community and Commercial Services

724,651

1,240,901

516,251

41.6%

75,180

10380

Busselton Library

31,028

73,034

42,006

57.5%

3,923

·        Furniture & Office Equipment - The purchase of new furniture and office equipment (under the capitalisation threshold) has been held up due to the new renovations and subsequent requirement for furniture and fit-out of the new children’s area.  Increased expenditure will occur over the next few months in line with budget.

·        Library Resources - Spending on Library Resources was delayed whilst tenders were sought for a new “buy local” initiative.  A significant number of purchase orders have been raised since November, with items due to be received over the next few months.

·        Entity Specific Consumables – Coffee machine has been disposed of which means that there will be no expenditure, and no offset income.

·        Photocopying – Currently investigating zero expenditure.  It appears Photocopy Paper isn’t being correctly costed to the library budget before being issued from central stores – will be rectified in consultation with Customer Service Team.

10381

Dunsborough Library

12,505

22,687

10,182

44.9%

(389)

·        Contractors – Carpet cleaning has been rescheduled to occur in March/April 2021.

·        Other Computer costs - $1800 Networking costs no longer required.

·        Photocopying – see Busselton explanation.

·        Library Resources – see Busselton explanation.

10540

Recreation Administration

8,994

30,836

21,842

70.8%

3,357

The City application to State Government 2021/22 Every Club grant was successful. As of 31 January, awaiting for grant deed which will stipulate conditions/ details of grant. It is envisaged that this budget will be spent by years end.

10541

Recreation Planning

1,030

80,999

79,969

98.7%

19,167

Timing of expenditure was awaiting the outcomes of external grant applications.  As of 31 January, grant deeds have now been finalised, scope and quote with preferred consultant is being finalised. The expected expenditure is now Q3 and Q4.

10590

Naturaliste Community Centre

30,114

63,896

33,782

52.9%

(1,514)

The Naturaliste Community 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 the first two quarters. To date, we are still limited by Phase 4 restrictions and have limited numbers in some activities affecting a slow return to business as usual and therefore planned expenditure. Business is now picking up and we are likely to see increased expenditure over the next few months in line with budget.

10591

Geographe Leisure Centre

170,287

233,353

63,066

27.0%

13,689

This is the same as the factors listed above for the NCC.

10600

Busselton Jetty Tourist Park

257,872

338,926

81,054

23.9%

4,491

The majority of this variance cost is the monthly management contract fee ($41,125 – runs one month in arrears) 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.


 

10630

Property and Business Development

11,841

59,689

47,848

80.2%

16,902

The budget is made up of numerous line items that have been spread throughout the year. The actual timing for these things are inherently difficult to predict, as more often than not they depend on interactions with outside third parties for development opportunities and collaborations. For example, we budget for advertising and marketing, but need to wait for relevant opportunities to arise throughout the year that may not necessarily align with budget timing.

11151

Airport Operations

89,258

214,914

125,656

58.5%

7,453

The budget variance YTD includes the key allocations of:

·        security screening of $45K not spent;

·        contractors - $44K for tree clearing not completed/expended; and

·        smaller variances in other areas not yet expended.

B1361

YCAB (Youth Precinct Foreshore)

17,487

33,173

15,686

47.3%

654

Operating grants forecast were not available as planned and therefore associated expenses did not occur. Alternative funding was sourced to run a program in Dunsborough which commences February when expenses to deliver will start to be seen.

Planning and Development Services

684,288

1,189,359

505,071

42.5%

(605)

10820

Strategic Planning

129,693

141,414

11,721

8.3%

19,202

Estimated revenues (re-zonings, structure plans) and anticipated consultant contracts (for specialised works seen as likely to be needed for scheduled City projects) etc. are often quite difficult to predict as they are subject to third-party intentions and initiatives, or competing demands and task allocation/prioritisation here at the City.

10830

Environmental Management Administration

195,524

318,870

123,346

38.7%

(9,492)

Expenditure variance due to:

1.         Timing of Barnard Park East management plans contract, due April 2021, pending completion of upgrade works;

2.         Lower Vasse River sediment removal and groundwater investigations were delayed, now due May 2021;

3.         Carbunup reserve contaminated site investigations due May 2021.

10920

Environmental Health Services Administration

523

25,689

25,166

98.0%

10,306

YTD budget includes error of $5,000 extra within 3280 (Contractors), Contractor allocation of $5,000 to implement audit outcomes now completed in house.  Traditional pre summer assessment of sound level meters revealed little to no faults requiring repair due to 2020 COVID event cancellations.

10925

Preventative Services – CLAG

119,098

57,581

(61,517)

(106.8%)

(54,442)

Due to the much earlier and more significant onset of the Ross River Virus threat, extra chemical applications, transport, etc were required.  Permission was received from the Department of Health to draw extra trust funds for these purposes (see positive variance in Other Income section above). Full reconciliation of the CLAG budget will occur by the end of the financial year.

10931

Protective Burning & Firebreaks –Reserves

35,626

317,268

281,642

88.8%

30,652

Mitigation work is heavily weather reliant. Grant funding is provided by State government in a lump sum payment and is not reflective of timing on mitigation expenditure. Tender currently in development for the implementation of mechanical and chemical program across the approved grant application treatments. Outstanding payments of $16,000 for traffic management not reflected in current YTD. Additionally payments to Brigades for burning completed in spring has not been made to reflect in YTD, payments will be processed as soon as practicable during summer operations.

11170

Meelup Regional Park

45,095

104,371

59,276

56.8%

1,879

Expenditure variance due to timing of awarding cultural heritage assessment contract as part of the Meelup Regional Park Management Plan review. This was budgeted to occur in November, but is now planned for mid-March 2021, due to initial request for services not attracting a suitable service provider.


 

B1010-B1028

Bushfire Brigades – Various

66,179

88,998

22,819

25.6%

(497)

Emergency operations dependant. YTD will vary according to operational requirements.

Engineering and Works Services

4,964,353

6,227,363

1,263,010

20.3%

265,820

11160-11162

Busselton Jetty

32,695

18,956

(13,739)

(72.5%)

1,533

An incorrect posting of $17K of capital expenditure will be corrected in February.

12600

Street & Drain Cleaning

160,366

255,346

94,980

37.2%

14,874

Expenditure timing - The rate of expenditure for street sweeping has increased as we move through into the summer months with servicing of the town centres and surrounds increasing with the extra visitors to town.  The majority of drain abduction works will commence prior to the rainy season in the last quarter of the financial year to ensure drains are free of debris to mitigate against flooding.  There is $247k in committed costs linked to future planned scheduled maintenance within the system. This budget will be fully expended come June 30.

12620 & 12621

Rural & Urban Tree Pruning

85,632

220,500

134,868

61.2%

24,209

Expenditure against these activities has been withheld to the value of $247K to help offset May 2020 storm damage related costs which are subject to DRFAWA claims. YTD withheld expenditure should total $144k which is close to the actual under expended amount of $135k. A total of $403k in Contractor clean-up costs were incurred post June 30 with these costs coded against the individual roads impacted. The majority of these costs are subject to four (4) submissions for reimbursement currently being assessed via disaster recovery relief claims lodged. It is unknown at this time how long these assessments will take especially given the recent flooding in the North and Perth fires likely further delaying the assessment process.

Various

Bridges

15,566

105,707

90,141

85.3%

8,800

Expenditure against these activities has been withheld to the value of $105K to help offset May 2020 storm damage related costs which are subject to DRFAWA claims. YTD withheld expenditure should total $102k apportioned which is close to the actual under expended amount of $90k.

Various

Buildings

743,785

828,961

85,176

10.3%

41,768

The majority of scheduled maintenance activities to Buildings occur primarily in the second half of the financial year outside of peak periods (January to April) to avoid impacts to visitor usage of facilities. Hence the year to date variance to budget (which is spread evenly).

Various

Other Infrastructure Maintenance

609,427

1,018,366

408,938

40.2%

(4,647)

This broad category encompasses the consolidation of 84 separate and unique services delivered across the City, this includes things like Event support; Boat Ramp maintenance; Cemetery maintenance; maintenance at the Libraries and GLC; Caravan Park maintenance, Street Lighting installation; the Foreshores; the CBD’s; Cycleway,  Footpaths Maintenance etc. Expenditure variances for January is mostly attributable to timing with the budget having been evenly spread across the financial year. There is also within here a further $50k in budgeted services that have been withheld to help offset storm damage related costs.  Material & Contractor costs associated with the majority of these areas has been on the rise now that the City is into the busy summer months of the year.

Various

Waste services

1,133,665

1,552,288

418,623

27.0%

83,503

The pandemic has resulted with more people remaining at home, and more West Australian visitors around for extended periods, generating more household and green waste. By building up the green waste piles, contractors are only brought periodically, in order to maximise efficiency. This lag time in invoicing, after the material have been processed, coupled with a significant staffing shortage has meant that waste transfer operations to the Dardanup landfill have been scaled right back, further compound the underspend. Other significant contributing factors include:

1.         The City has suspended the FOGO service (i.e. no collection and no processing costs) for the remainder of the financial year.

2.         The planned restoration works associated with the decontamination of the Busselton Transfer Station and its surrounds have not as yet commenced.

3.         When works at either waste facility have occurred, they were done internally using casual labour and the City’s Plant and Equipment, instead of external contractors.

Various

Roads Maintenance

645,990

148,078

(497,912)

(336.2%)

5,651

 

Higher than normal costs are largely associated with DRFCA WA storm damage claims stemming from the May 2020 storm events with $403k in extraordinary Material & Contractor costs being incurred Road Maintenance.  Four claims have been submitted to DFES totalling $789K, with $150K of these associated with costs incurred in the previous financial year. The State Government received advice in January pursuant to the “evidence requirements” from the Federal Government specifically in relation to debris removal from road verges. Post November 2018 disaster recovery relief rules were tightened in light of a Productivity Commission review that found unsatisfactory levels of claims for costs that were unrelated to disaster events. This included claiming for the general clean-up of debris from rural verges both related and unrelated to specific storm events. The State Government officers were scheduled to commence their detailed review in early February however this may now be impacted by the flooding in the North and Perth fires. Offset savings against these unforeseen costs are spread throughout Engineering Operation budgets with moratoriums being put on services including, Rural and Urban tree pruning, Bridge maintenance etc.

 

Various

Reserve Maintenance

752,876

1,046,048

293,172

28.0%

50,283

 

Material & Contractor costs associated with Public Open Spaces are historically lower in the cooler first months of the  financial year; July through to September, with expenditure patters starting  to increasing through October to December then spiking through January to April before beginning to moderate lower again after the Easter public holidays.  Going against the trend actual costs incurred in January totalled $115k against a monthly budget of $149k further adding to the favourable position. On top of this there was a stock adjustment made against Materials & Contractors reducing expenditure against budget by a further $106k. Off note there is $317k of Commitment costs representing planned expenditure to occur in future periods; this will significantly reduce the variance.    

 

5280

Transport - Fleet Management

784,350

1,033,113

248,763

24.1%

39,846

 

Fuel was underspent by $148,810 YTD due to delays in processing invoices due to fleet staff absences, lower fuel cost and lower vehicle utilisation. Tyre purchase was underspent by $9,126 YTD, replacement parts/ tooling/contractor costs were underspent by $90,827 YTD due to supplier delays in processing invoices.  Budget is spread evenly across the year, however spending is generally more cyclical in nature and peaks in the busier spring/summer/autumn months.

 

 


 

3.    Utilities 

Costs are $274K, or 16.93%, under budget as at January YTD.  Due to the delayed or altered billing cycles of some of the suppliers, it is best to view the variances for each area after factoring this in.  The schedule below provides a better understanding of the costs YTD that are included in the category of Utilities:

Account

Total Annual Budget

YTD Budget as at 31/1

YTD Actual as at 31/1

Reported YTD Var. to 31/1

YTD Actual (including late billing)

YTD Var. (including late billing)

3500 - Electricity

1,763,264

1,028,604

896,656

131,948

1,037,172

(8,568)

3505 - Gas - Reticulated

7,324

4,270

1,557

2,713

1,836

2,434

3506 - Gas - LPG Bottled

14,809

8,624

11,536

(2,912)

12,176

(3,552)

3507 - Gas - Alinta Boiler Gas (BJTP)

5,595

3,255

679

2,576

679

2,576

3510 - Water Consumption

460,095

268,415

101,469

166,946

101,469

166,946

Billing cycles range from bi-monthly to every 4 months.  The budget is spread evenly over 12 months.

3511 - Water Meter Rental & Supply Charge

79,139

46,067

29,830

16,237

29,830

16,237

Per above.

3513 - Sewerage Volume Charges

20,924

14,614

31,822

(17,208)

31,822

(17,208)

Annual bill is retrospective, charge in July.  Budget set in February - difficult to forecast so far in advance.

3514 - Sewerage Charge (Rates)

89,081

53,971

87,543

(33,572)

87,543

(33,572)

Billing cycle is annual, but the budget has been spread.  Total annual budget variance is only $2K.

3520 - Office Telephones, Faxes & Internet

128,938

75,257

49,510

25,747

55,935

19,322

9 weeks of WFH resulting in reduced VOIP charges for desk phones.

3521 - Public WIFI

36,455

21,252

23,436

(2,184)

26,464

(5,212)

3522 - Mobile Device Costs

104,774

61,145

62,795

(1,650)

63,141

(1,996)

3524 - Other Telecommunication & Network Costs

60,558

35,343

49,636

(14,293)

51,909

(16,566)

After hours call services and NBN for libraries and airport.

TOTAL UTILITIES: 

2,770,956

1,620,817

1,346,469

274,348

1,499,977

120,840

 


 

4.    Other Expenditure

$1.06M, or 42.5%, under the budget YTD. The main contributing items are listed below:

Cost Code

Cost Code Description

Actual YTD

$

Amended Budget YTD

$

Variance
YTD
$

Variance
YTD
%

Change in Variance Current Month

$

Executive Services

49,180

69,229

20,049

29.0%

6,756

10001

Office of the CEO

49,122

69,229

20,107

29.0%

6,814

Underspends exist in the donations, contributions and subsidies budget ($5,700), CAPEROC budget ($3,000) and the CEO Discretionary Budget ($11,500).   

Finance and Corporate Services

461,515

556,110

94,595

17.0%

5,343

10000

Members of Council

266,218

317,948

51,730

16.3%

422

Timing variances exist in relation to the payment of elected member allowances and reimbursements.  As per previous commentary, the bulk of this ($30,000) is related to timing variances in payment of sitting fees. $5,000 is related to underspends in the elected members training budget and $7,500 to there being no expenditure against the Council holding account. The balance relates to timing variances for expense reimbursements which are difficult to predict when budgeting.

10700

Public Relations

43,990

66,964

22,974

34.3%

2,316

The underspend variance is related to a reduced payment to BASSCA this year given COVID-19 and no school exchanges, the cancelling of the Mayoral Breakfast and a reduced spend associated with functions such as the launch of Jetstar flights.

Community and Commercial Services

697,794

1,580,045

882,251

55.8%

27,378

10530

Community Services Administration

314,793

440,896

126,104

28.6%

(13,626)

Invoices from Royal Lifesaving have not yet been received for services rendered YTD.

10532

BPACC Operations

11,668

30,000

18,332

61.1%

5,000

Low cost marketing materials have been developed to date and until construction is secured under the tender no large investments in event attraction are likely to be made.

10547

Iron Man

 -

200,000

200,000

100.0%

 -

Ironman has been cancelled for this year and hence the funds will not be expended. Council have resolved (C2012/159 – 9 December 2020) to utilise the remaining budget towards an electronic billboard, however this will not likely be completed until closer to the end of the financial year.

10567

CinefestOZ

80,000

120,000

40,000

33.3%

 -

YTD variance is due to the sponsorship contract being varied due to a change in format as a result of COVID (C2009/110) - $80k paid in 2020/21 with the balance ($38k) carried over to be paid in addition to 2021/22 Market Yield Adjustment.

10625

Art Geo Administration

1,649

16,904

15,255

90.2%

1,751

Underspend is offset by additional wages due to in house production of marketing, promotional and interpretation work.

10630

Economic and Business Development Administration

2,418

19,081

16,663

87.3%

1,546

The budget is made up of numerous line items that have been spread throughout the year. The actual timing for these things are inherently difficult to predict, including valuations as more often than not they depend on interactions with outside third parties for development opportunities and collaborations. For example, we budget for marketing and promotions, but need to wait for relevant opportunities to arise throughout the year that may not necessarily align with budget timing. It should be noted that a large portion of the total annual budget ($55K) relates to cruise ship visitor servicing ($38K), which due to the effects of COVID is unlikely to be spent by the end of the financial year.

 


 

10634

Business Support Program

48,522

62,356

13,834

22.2%

6,208

There are a number of grants that are being finalised by applicants and once these have been completed then we will pay out the grant funds. There is also an amount of $19K that has not been allocated from the total annual budget that will be reflected in the YTD variance.

11151

Airport Operations

76

414,033

413,957

100.0%

52

Relates to marketing activities for RPT services which have not commenced due to COVID.

Planning and Development Services

129,458

121,321

(8,137)

(6.7%)

(55,255)

10830

Environmental Management Administration

119

18,301

18,182

99.3%

 -

YTD variance due to timing of Biodiversity Incentive Rebate Scheme payment due May 2021.

10925

Preventative Services – CLAG

27,945

13,823

(14,122)

(102.2%)

(14,664)

Due to the much earlier and more significant onset of the Ross River Virus threat, extra chemical applications, transport, etc were required.  Permission was received from the Department of Health to draw extra trust funds for these purposes (see positive variance in Other Income section above).  Full reconciliation of the CLAG budget will occur by the end of the financial year.

10942

Bushfire Risk Management Planning – DFES

23,466

 -

(23,466)

(100.0%)

(23,466)

This represents repayment of unspent 19/20 BRMP grant funds.

Engineering and Works Services

98,215

172,425

74,210

43.0%

4,540

B1223

Micro Brewery - Public Ablution

60,000

120,000

60,000

50.0%

 -

The City’s fund contribution to the construction of these ablutions is due to be paid upon receipt of invoice from the company.

G0042

BTS External Restoration Works

17,562

29,169

11,607

39.8%

4,167

Latest round of home grown produce testing has not been invoiced.

 

5.    Non-Operating Grants, Subsidies & Contributions

The negative variance of $3.7M is mainly due to the items in the table below. It should be noted that apart from the first two items in the table (the Locke Estate Contributions variance is due to COVID hardship deferral relief), any negative variance in this area will approximately correlate to an offsetting variance in a capital project tied to these funding sources. This can be seen in the section below that outlines the capital expenditure variances. The positive variances generally relate to budget timing, i.e. the funds are usually brought to account during the end of financial year reconciliation process, so hence are budgeted in June.

Revenue Code

Revenue Code Description

Actual YTD

$

Amended Budget YTD

$

Variance
YTD
$

Variance
YTD
%

Change in Variance Current Month

$

Finance and Corporate Services

36,000

56,000

(20,000)

(35.7%)

32,000

R0288

Locke Estate –

Leaseholder Contributions

36,000

56,000

(20,000)

(35.7%)

32,000

Planning and Development Services

10,592

 -

10,592

100.0%

 -

B1025

Yallingup Coastal Bushfire Brigade – Donated Assets

10,592

 -

10,592

100.0%

 -

Engineering and Works Services

4,150,656

7,844,333

(3,693,677)

(47.1%)

77,698

A0025

Tuart Drive Bridge 0238 – Federal Capital Grant

 -

170,330

(170,330)

(100.0%)

 -

B9407

Busselton Senior Citizens – Developer Cont. Utilised

595,306

162,479

432,827

266.4%

 -

B9591

Performing Arts Convention Centre – Developer Cont. Utilised

 -

3,000,000

(3,000,000)

(100.0%)

 -

C0059

Dunsborough Yacht Club Carpark – Developer Cont.

60,000

 -

60,000

100.0%

 -

C1026

Townscape Works Dunsborough – State Capital Grant

10,000

 -

10,000

100.0%

10,000

C3116

Dawson Park (McIntyre St POS) – Developer Cont.

 -

77,467

(77,467)

(100.0%)

 -

F1002

Dual Use Path - Dunsborough to Busselton – State Capital Grant

64,000

 -

64,000

100.0%

 -

F1022

Buayanyup Drain Shared Path – State Capital Grant

 -

186,669

(186,669)

(100.0%)

(26,667)

S0005

Ludlow Hithergreen Road - Second Coat Seal –

Main Roads Capital Grant

180,000

262,500

(82,500)

(31.4%)

(37,500)

S0048

Bussell Highway – Developer Cont. Utilised

200,000

291,669

(91,669)

(31.4%)

(41,667)

S0070

Peel & Queen Street Roundabout Service Relocation –

Developer Cont. Utilised

120,000

240,000

(120,000)

(50.0%)

 -

S0073

Gale Road Rural Reconstruction –

Federal Capital Grant

515,811

800,618

(284,807)

(35.6%)

(114,374)

S0074

Causeway Road Duplication – Developer Cont. Utilised

800,000

300,000

500,000

166.7%

300,000

S0075

Local Road and Community Infrastructure Program –

Federal Capital Grant

480,935

525,483

(44,548)

(8.5%)

 -

S0076

Kaloorup Road (Stage 1) – Main Roads Direct Grant

106,800

 -

106,800

100.0%

106,800

T0020

Capel Tutunup Road –

RTR Capital Grant

 -

832,258

(832,258)

(100.0%)

(118,894)

W0067

Ford Road Reconstruct and Asphalt Overlay – Main Roads Direct Grant

10,875

 -

10,875

100.0%

 -

W0121

Geographe Bay Road Quindalup –

Developer Cont. Utilised

12,000

 -

12,000

100.0%

 -

 


 

6.    Capital Expenditure

As at 31 January 2021, there is an underspend variance of 46.3%, or $11.8M, in total capital expenditure, with YTD actual at $13.7M against the YTD amended budget of $25.5M. A portion of this positive underspend variance is offset by the negative variance in Non-Operating Grants, Contributions & Subsidies discussed above, with the remainder offset by the 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

Actual YTD

$

Amended Budget YTD

$

Variance
YTD
$

Variance
YTD
%

Change in Variance Current Month

$

Land

 -

50,000

50,000

100.0%

 -

10610

Property Services Administration

 -

50,000

50,000

100.0%

 -

The budget represents funds allocated for costs associated with potential strategic land purchases in the City of Busselton. To date there have been no expenses incurred, as potential transactions have not progressed beyond informal discussions.

Buildings

2,632,607

3,491,859

859,252

24.6%

209,964

B9516

Busselton Library Upgrade

584,477

603,000

18,523

3.1%

(2,300)

Library works completed. Balance of funds to be directed to fit-out items.

B9300/1/2

Aged Housing Capital Improvements

49,874

133,200

83,326

62.6%

1,020

Works proposed are to separate power and drainage servicing Winderlup Court and Winderlup Villas.

The power requirements will not be triggered until the new conditional land title lot is created, but plans are in place to obtain quotes now and carry out the works in anticipation of the lot creation.

B9407

Busselton Senior Citizens

620,333

738,128

117,795

16.0%

 -

Works were completed in September. The savings against budget are being reviewed for potential use on roof replacement and carpark works. Works have been re-scoped based on preliminary estimates to reduce costs of roof replacement.

B9558

Churchill Park -  Change Room Refurbishment

 -

21,000

21,000

100.0%

 -

Works are scheduled to be completed before the end of the financial year.  Procurement for roof sheeting is currently underway.

B9591

Performing Arts Convention Centre

1,038,279

1,340,685

302,406

22.6%

82,563

Regional Growth Fund milestones are under review pending funding extension confirmation. Design contract program extension pending.  Budgeted cash flow has been reviewed, with works now scheduled for commencement in June 2021.

B9596

GLC Building Improvements

57,351

286,797

229,447

80.0%

40,784

Carried over works from the prior year. Works have been rescheduled and have been forecast to be completed in February/March 2021 to minimise impact to GLC operations.

B9606

King Street Toilets

49,061

26,852

(22,209)

(82.7%)

3,836

Stage 1 works completed. Minor additional works undertaken in this period to improve accessibility to new viewing platform. The proportion of the project carried over from prior years is now completed and is overspent compared to the total budget by $3,035, representing 6%. The YTD budget represents an even spread over the financial year and thus the $22.2k YTD variance is attributable to timing and will clear as we near June 30.

 


 

B9607

General Buildings Asset Renewal Allocation (Various Buildings)

66,234

87,500

21,266

24.3%

12,500

This is a general budget allocation for building renewal works. At the end of January, 75% of the YTD budget had been outlaid with a further $37k in commitments representing works either being competed or completed works awaiting invoicing. To this end and with commitments included, costs are tracking according to the YTD budget.

B9608

Demolition Allocation

(Various Buildings)

2,011

12,500

10,489

83.9%

 -

Funds have been allocated to partial demolition of the Weld Theatre by the end of the financial year, in preparation for its integration with the BPACC.

B9610

Old Butter Factory

130,269

 -

(130,269)

(100.0%)

 -

Conservation and fire damage works now completed.  Insurance claim has now been approved, with the final position estimated to be in the order of ($30K), with savings being identified in other areas to account for this variance.

B9612

Churchill Park

Renew Sports Lights

 -

140,000

140,000

100.0%

70,000

A review of consultants work to date is being undertaken, with a decision to be made Feb/March with Council if this site is the subject of a grant application to the State Government.  If yes, application to be submitted and funds to be carried forward; if not, funds to be spent this financial year.

B9711

Busselton Airport – Building

 -

15,000

15,000

100.0%

 -

Small capital works projects to be completed either prior to Jetstar flights commencing or by the end of the financial year.

B9717

Airport Construction, Existing Terminal Upgrade

 -

24,969

24,969

100.0%

3,567

As per above.

B9809

Busselton Jetty Tourist Park Compliance Works

3,600

40,000

36,400

91.0%

 -

Compliance electrical works to be completed by the end of the financial year.

Plant & Equipment

871,455

2,028,534

1,157,079

57.0%

628,738

10372

Dunsborough Cemetery

 -

20,000

20,000

100.0%

 -

The budget is for maintenance trailers for the cemetery, both for grave shoring equipment and watering equipment, as well as fencing and turf upgrades. The delay in procurement of these items is due to current workloads of relevant staff and other projects taking a higher priority to date.

11106

Street Lighting Installations

17,300

 -

(17,300)

(100.0%)

 -

The expenditure represents a storage container for the lighting equipment. The budget for the whole activity has been entered against one operational line incorrectly, rather than being split according to operational maintenance, capital upgrade, and one-off asset purchases such as this.

11401

Transport – Workshop

10,410

30,000

19,590

65.3%

 -

Delivery of upgrades to repeater at communications tower still in progress.

11402

Plant Purchases (P10)

321,201

1,120,000

798,799

71.3%

720,000

Generators at DWF pond and cell – not yet replaced.  Site and operations under review.  Manager’s vehicle also yet to be ordered/delivered.  The large increase in the variance is due to the budgeted purchase of a waste side loader truck, which will now be delivered in October, plus a waste wheel loader which is now planned to be delivered in February.

11403

Plant Purchases (P11)

46,995

192,500

145,505

75.6%

(44,495)

One vehicle ordered with delivery expected in March and one light truck ordered in December, delivery expected in May.

11404

Plant Purchases (P12)

 -

114,000

114,000

100.0%

 -

1 x light truck and concrete scarifier to be ordered early February, delivery expected in May.

 


 

11407

P&E - P&G Smart Technologies

 -

58,331

58,331

100.0%

8,333

The annual scope of the project is currently being finalised and delivery will follow in the last quarter of 20/21.

11500

Operations Services Administration

 -

40,000

40,000

100.0%

 -

Vehicle ordered in October, delivery expected in March. Delays in delivery are due to the high demand currently being experienced by dealers due to the government’s stimulus package in concurrence with supply chain restrictions due to COVID.

B1025

Yallingup Coastal Bushfire Brigade

10,592

 -

(10,592)

(100.0%)

 -

Unbudgeted donated asset (offsetting revenue shown above).

Furniture & Office Equipment

201,660

443,088

241,428

54.5%

118,406

10250

Information & Communication Technology Services

191,660

407,088

215,428

52.9%

118,406

Whilst variance is currently high the budgeted amount is planned for expenditure. Some of the delayed projects (COVID impacts include consultancy availability, hardware supply chain and additional unplanned IT work) have been accelerated in the new year including the hardware refresh, phone line migration, single label domain, website builds and online payments. We expect the projects to make up time and currently do not plan for any carry overs.

10591

Geographe Leisure Centre

 -

20,000

20,000

100.0%

 -

Funds have been committed for the purchase and installation of a new disability access hoist for the pool, to be completed early February.

Infrastructure By Class

9,987,769

19,482,767

9,494,998

48.7%

368,334

Various

Roads

5,942,083

9,431,727

3,489,644

37.0%

(708,118)

Capital projects with civil works are commonly scheduled to be carried out later in the financial year, in the drier summer/autumn 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.  Project delivery continued to increase over January.  There will be a material underspend against the Peel & Queen Street Roundabout project (S0070) that is valued at $1.2m. Works are scheduled to commence after Easter on the Peel Terrace roundabout section with the second stage Albert Street intersection to be completed after June.

Various

Bridges

 -

842,331

842,331

100.0%

120,333

Bridge projects are largely completed towards the end of the summer months, with billing expected to come through towards the end of the third quarter.

Various

Car Parks

928,964

1,117,801

188,837

16.9%

35,643

This variance is represented by projects completed ahead of YTD budget such as Carpark - Hotel Site 1, the King Street Carpark and the Eagle Bay carpark while at the same time there are a number of projects yet to commence that are well behind YTD budget such as the Vasse Oval Gravel Car Park project, Administration Building Carpark & the Fourth Street carpark that is unlikely to be constructed this financial year due to a need for adequate protective costal defences prior to construction. The Dunsborough Yacht Club Carpark has been completed coming in under budget by $88k. Significant savings were achieved by utilising old recycled road base materials from the nearby Geographe Bay Road renewal project. The intention is to use some of these savings to offset additional costs associated with the Geographe Bay Road project.

Various

Footpaths & Cycleways

181,561

869,395

687,834

79.1%

111,832

Of the 16 Cycleway and Footpath projects only three have been completed to the end of January with planning well under way for the other 13 of them. The largest project being the Buayanyup Drain Shared Path is $373K under budget YTD and is planned to commence in the last quarter of the financial year, thus 43% of the YTD variance is attributable to this project alone.

 


 

Various

Parks, Gardens & Reserves

2,800,888

6,498,559

3,697,671

56.9%

769,735

Capital projects within this grouping are planned to be carried out largely later in the financial year. The capital works budgets have been entered based on an even spread method, not on a scheduled timing of works basis.  WAPC POS upgrade projects are currently at the consultation stage and will move through to construction in the last quarter.  The Craig Street Groyne and Sea Wall project is scheduled for construction during the last quarter. 

65% of the YTD variance within this category of Infrastructure is attributable to three projects being the Dunsborough Lakes Sporting Precinct (Stage 1) at $658k, the Craig Street Groyne and Sea Wall at $600,000 and Site Rehabilitation Old Busselton Landfill Site at $583k. Thus this category also encompasses Coastal and Waste infrastructure projects as well. There are 67 individual projects within this category. It is envisages that not all works will be completed by June 30. For example the $1m set aside for site rehabilitation at Busselton is not likely to physically commence this financial year due to site related issues and complex planning associated with capping the site.

Various

Drainage

 -

62,119

62,119

100.0%

6,725

There are only three small drainage related projects on budget this financial year.  Both the Glenmeer Ramble and Chugg Road Drainage Upgrade projects are scheduled to commence in the last quarter of the financial year.

Various

Regional Airport & Industrial Park Infrastructure

134,273

660,835

526,562

79.7%

32,183

Bird netting was due to start in January and the car park works have been completed but not invoiced as yet. 

The most significant part of the underspend relates to noise amelioration works which is funded from grant funds held in reserve.  This will be partially invoiced by the end of the financial year, but depending on construction timelines, the rest will need to remain on the Airport development budget for future noise amelioration.  Unspent funds will therefore remain in the reserve.

 

7.    Proceeds From Sale of Assets

YTD proceeds from sale of assets is $405K behind budget due to delays in delivery of acquisitions, and the associated transfer to auction of the vehicles being replaced. 

 

Also, aside from a significantly reduced capital replacement program in both light vehicles and heavy plant items, many existing items of plant that were due to be replaced have been retained in service to maintain operational requirements.

 

8.    Proceeds From New Loans

$7.5M of the budgeted proceeds of $7.7M are related to the 50% drawdown on the construction loan for the BPAC. This project has been deferred in consultation with the Federal Government. Construction is now planned to commence in July 2021. Grant funding will start to be acquitted in the second half of 2021, as will the drawdown on the borrowing facility. 

 

The remaining $200K of the variance is offset by to advances to community groups which have not occurred.

 

9.    Repayment of Capital Lease

The budget was being finalised during the first COVID lockdown. As such, the timing was not set as accurately as it could have. The timing difference at the end of December YTD will rectify by the end of January.

 

10.  Advances to Community Groups

No applications have been made to date.  The $200K positive variance is offset by the non-receipt of the associated loans funds that the City would receive for these on-lending purposes.

 

11.  Transfer to Restricted Assets

There is a YTD variance in transfers to restricted assets of $2.6M more than amended budget. Grant funding received from Federal Government for “Drought Communities Program” of $500K (attributable to CC C3223 Dunsborough Non-Potable Water Network) was received in September whereas budget projected allocation was in June. It was anticipated that the expenditure would be incurred in June, hence the funding timing projections followed.

 

Developer contributions, deposits and bonds are inherently hard to predict and budget for. An annual amount of $50K spread evenly over 12 months was budgeted, however, over $2.1M has been received in the YTD as at January, the bulk of which are for road works bonds ($1.7M).

 

12.  Transfer from Restricted Assets

YTD there has been $1.5M transferred from restricted assets into the Municipal Account. This was mainly attributable to refunds of road work bonds of $1.2M, refund of hall deposits of $14K, Busselton Jetty Tourist Park deposit refunds of $306K, and other sundry refunds of $39K.

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 January 2021, the value of the City’s invested funds totalled $81.29M, down from $87.29M as at 31 December 2020.  The decrease is due to the closure of two term deposits totalling $6.0M.

 

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 unchanged at $6.0M.

 

During the month of January, five term deposits totalling the amount of $11.5M matured. Existing deposits were renewed for a further 120 days at 0.34% on average.

 

The official cash rate remains steady for the month of January at 0.10%. This will have a strong impact on the City’s interest earnings for the foreseeable future.

 

Chief Executive Officer – Corporate Credit Card

Details of transactions made on the Chief Executive Officer’s corporate credit card during January 2021 are provided below to ensure there is appropriate oversight and awareness.

 

Date

Payee

Description

$ Amount

31/12/2020

EHB HOLDINGS PTY LTD

(ESPLANADE HOTEL)

CEO HOSPITALITY

161.50

31/12/2020

EHB HOLDINGS PTY LTD

(ESPLANADE HOTEL)

DUPLICATE PAYMENT IN ERROR- REIMBURSED BY SUPPLIER

91.60

8/01/2021

HARVEY NORMAN AV/IT BUSSELTON

SCREEN COVER FOR NEW PHONE 12 PRO

79.00

12/01/2021

JB HI FI BUNBURY

COVER FOR NEW PHONE 12 PRO

69.95

21/01/2021

WA LOCAL GOVERNMENT WEST LEEDERVILLE

WALGA 150 YEARS OF LOCAL GOV DINNER - MIKE ARCHER,

GRANT HENLEY, KELLY HICK

900.00

 

 

 

1,302.05

 

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 by Council. Council may wish to make additional resolutions as a result of having received these reports.

CONCLUSION

Budget timings remain affected by the impacts of COVID-19 and are gradually being re-aligned. As at 31 January 2021, the City’s net current position stands at $22.3M. The City’s financial performance is considered satisfactory, and cash reserves remain strong.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.  


Council

39

24 March 2021

12.2

Attachment a

Financial Activity Statement - January 2021

 















Council

41

24 March 2021

12.2

Attachment b

Investment Report - January 2021

 


Council                                                                                      47                                                                  24 March 2021

 

14.1           RFT 01-21 MITCHELL PARK CIVIL & LANDSCAPING WORKS

STRATEGIC GOAL

2. PLACE AND SPACES Vibrant, attractive, affordable

STRATEGIC OBJECTIVE

2.2 Attractive parks and open spaces that create opportunities for people to come together, socialise and enjoy a range of activities.

SUBJECT INDEX

Tenders

BUSINESS UNIT

Major Projects and Facilities

REPORTING OFFICER

Manager Major Projects and Facilities - Eden Shepherd

AUTHORISING OFFICER

Director, Engineering and Works Services - Oliver Darby

NATURE OF DECISION

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

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   Mitchell Park Landscape Stage 1A Layout Plan

Attachment b    Published Under Separate Cover  Confidential Peer Review RFT 01-21 Mitchell Park Civil & Landscaping Works

Attachment c    Published Under Separate Cover  Confidential Tender Evaluation Report - RFT 01-21 Mitchell Park Civil & Landscaping Works  

 

Council Decision and Officer Recommendation

C2103/051              Moved Councillor L Miles, seconded Councillor P Carter

That the Council:

1.         Pursuant to RFT 01/21 Mitchell Park Civil & Landscaping Works, accept the tender from Pindan Projects WA Pty Ltd for the Stage 1A works (tendered price $685,265.04 exclusive of GST) as the most advantageous tender (Successful Tenderer), subject to minor variations to be negotiated in accordance with Regulation 20 of the Local Government (Functions and General) Regulations 1996 (FG Regs).

 

2.         Delegate power and authority to the Chief Executive Officer to:

a.         negotiate and agree with the Successful Tenderer minor variations in accordance with Regulation 20 of the FG Regs, subject to such variations and final terms not exceeding the overall project budget; and

b.        enter into a contract with the Successful Tenderer for supply of the relevant goods and services.

 

3.         Endorse the requested budget amendment outlined in Table 1 below resulting in no change to the budgeted cash position.

 

 

 

 

 

 

 

 

 

 

 

 

 

Table 1:

 

Cost Code

 

Description

Current Amended Budget ($)

 

Change ($)

Resulting Proposed Amended Budget ($)

Expenditure

 

 

 

 

 

130-C3226-3280-0000

 

Mitchell Park Upgrade

 

820,000

 

52,704

 

872,704

Reserve

 

 

 

 

  132-9103

Transfer from CBD Enhancement Reserve

(90,000)

0

(90,000)

132-9103

Transfer from CBD Enhancement Reserve

(350,000)

  0

(350,000)

225-9103

Transfer from Parks, Gardens & Reserves Reserve

(250,000)

(52,704)

(302,704)

130-C3226-1299-9450

CWKS No 2596

(125,000)

0

(125,000)

130-C3226-1299-9450

CWKS No 1360

(5,000)

0

(5,000)

Net Total

$0

$0

$0

 

CARRIED 9/0

En Bloc

 

EXECUTIVE SUMMARY

The City of Busselton invited tenders under Request for Tender 01-21 Mitchell Park Civil and Landscaping Works for the upgrade, renewal and inclusion of new civil and landscape components to Mitchell Park in accordance with the approved plan which can be viewed at Attachment A. The RFT called for respondents to price two Stages 1A and 1B. The report will reference only the award of Stage 1A, as the award of Stage 1B is subject to further consultation and agreement with the adjacent development.

 

This report summarises the submissions received, and recommends that Council:

·        endorse the outcome of the evaluation panel’s assessment;

·        delegate power and authority to the CEO to negotiate and agree final terms and conditions with the Successful Tenderer, Pindan Projects WA Pty Ltd; and

·        enter into a contract(s) for Stage 1A, for the upgrade, renewal and inclusion of new civil and landscape components to Mitchell Park in accordance with the approved plan.

 

 


 

BACKGROUND

The upgrade of Mitchell Park has been considered as part of the ongoing revitalisation and asset renewal for the town centre for a number of years. The genesis to commence works in recent years has been to coincide with the ongoing new development associated with the Busselton Central shopping centre.

 

In late 2019, the City undertook consultation with businesses and the community for the upgrade of Mitchell Park in the Busselton CBD. The City has utilised this feedback to develop a design that creates connection with surrounding shops and cafés, improves pedestrian access to the park and emphasises the importance of green open space.

 

To date, as part of the project, officers have removed a number of dead trees that were at the risk of causing injury from falling limbs, formative pruning has taken place on the existing peppermint trees (with appropriate fauna requirements) and garden bed planting has been removed, which has improved sight lines through the park. There is no intention to remove further trees for landscaping purposes. However, a number of trees are reaching their effective lifespan and a tree infill/replanting program for this area will be implemented as part of the ongoing management of the park.

 

The RFT called for respondents to price two Stages 1A and 1B. The report will reference only the award of Stage 1A as the award of Stage 1B is subject to further consultation and agreement with the adjacent development.

 

A brief scope for Stage 1 A is as follows, noting that a plan can be viewed at Attachment A:

·        Demolition of existing park infrastructure

·        New CBD unit paving, which will tie into the Queen Street & Prince Street paving upgrade

·        Exposed aggregate concrete retaining walls, with battens at various locations for seating

·        New custom bench seats on exposed aggregate concrete, with under bench lighting

·        One new timber deck with exposed aggregate concrete steps

·        Installation of vista light poles, with floodlight attachments around the turf area

·        Up-lights under the new trees

·        Power points on the vista light poles for market stall opportunities and events

·        Electrical supply for the provision of future outdoor screen and events

·        Communication conduits for the provision of future CCTV

·        Rubbish and Recycle bins

·        Drinking fountain and bottle refill

·        Bike rack and bike repair station

·        Granite boulders

·        Installation of irrigation

·        Landscaping, including garden beds, mulched areas and large central turf area

 

 


 

OFFICER COMMENT

The tender was issued as a public tender on Saturday 16 January 2021 and closed at 2:00pm on Tuesday 16 February 2021. The invitation to tender was advertised in ‘The West Australian’ and the ‘Busselton Dunsborough Times’.

 

The City received five compliant tender submissions from the following companies:

 

·        BOS Civil Pty Ltd

·        Busselton Civil Pty Ltd

·        Environmental Industries Pty Ltd

·        LD Total Pty Ltd

·        Pindan Projects WA Pty Ltd

 

Assessment Process

In accordance with the City’s procurement practices and procedures, tender assessments were carried out by a tender evaluation panel comprising City officers with relevant skills and experience.

 

The tender assessment process included:

·        Tenders received were assessed against relevant compliance criteria. The compliance criteria were not point scored. Each submission was assessed on a Yes/No basis as to whether each criterion was satisfactorily met. All tenders were deemed compliant.

 

·        The assessment of tenders against the following qualitative criteria; weighted according to the table below:

Criteria

Weighting

·    Relevant Experience

25%

·    Local Benefit

5%

·    Demonstrated Understanding

20%

 

The qualitative criteria were scored depending on the extent of which each tenderer was able to appropriately satisfy each criteria. The tendered prices were then assessed together with the weighted qualitative criteria and the tenders scored and ranked to determine the most advantageous outcome to the City; based on principles of representing best value for money. That is, although price is a consideration, the tender containing the lowest price will not necessarily be accepted by the City and nor will the tender be ranked the highest on the qualitative criteria.

 

Summary of Assessment Outcomes

The outcome of the evaluation panel’s assessment was as that Pindan Projects WA Pty Ltd was determined to be the highest ranked tenderer.

 

Pindan Projects displayed appropriate previous experience in building oriented construction with good experience in hard landscape projects. They have also included details of their nominated landscape subcontractor, LD Total, who have significant experience in delivering high quality landscape products. A very well detailed construction program was provided in the submission, detailed works sequences were provided and project constraints, indicating a high level of understanding and risk mitigation associated with the project.

 

Peer Review

The Chief Executive Officer requested an independent review of the tender process for RFT 01-21 Mitchell Park Civil and Landscaping Works. The review has been completed and is attached as a confidential item to this report.

 

Evaluation Panel Recommendation

Based on the Evaluation Panel’s assessment and overall ranking of the tenders and Pindan Projects WA Pty Ltd, it is recommended that the following tender would be the most advantageous to the City to accept Pindan Projects WA Pty Ltd (Preferred Tenderer) for the following reasons:

·        The Preferred Tenderer demonstrated a good range of relevant experience and ability to deliver the scope of works.

·        The nominated landscape subcontractor has significant experience in delivering high quality landscape products.

·        The Preferred Tenderer demonstrated a very good understanding of the project requirements and ability to complete the works within the desired timeframe.

Statutory Environment

The contract value is greater than $500,000, therefore, in accordance with section 5.43(b) of the Local Government Act 1995 (the Act), read with Delegation 3J, the tender is required to go before the Council.

 

In terms of section 3.57 of the Act, a local government is required to invite tenders before it enters into a contract of a prescribed kind under which another person is to supply goods and service. Part 4 of the Local Government (Functions and General) Regulations 1996:

·        requires that tenders be publicly invited for such contracts where the estimated cost of providing the required goods and/or service exceeds $150,000; and

·        under Regulations 11, 14, 18, 20 and 21A provides the statutory framework for inviting and assessing tenders and awarding contracts pursuant to this process.

With regard to the RFT, City officers have complied with abovementioned legislative requirements.

Relevant Plans and Policies

The City's purchasing policies, its occupational health and safety and asset management were all relevant to the RFT, and have been adhered to in the process of requesting and evaluating tenders.

Financial Implications

The Mitchell Park Upgrade will be funded from its existing 2020/21 budget allocation of $820,000. The current budget allocation after expenditure to date is $642,560. Year to date expenditure totals $177,439 and includes design consultancy fees, clearing permit cost, tree maintenance costs, granite boulders and City-supplied items including light poles, bollards, luminaires, pavers and drinking fountain.

 


 

Planned Amendment Item

Table 1:

 

Cost Code

 

Description

Current Amended Budget ($)

 

Change ($)

Resulting Proposed Amended Budget ($)

Expenditure

 

 

 

 

 

130-C3226-3280-0000

 

Mitchell Park Upgrade

 

820,000

 

52,704

 

872,704

Reserve

 

 

 

 

  132-9103

Transfer from CBD Enhancement Reserve

(90,000)

0

(90,000)

132-9103

Transfer from CBD Enhancement Reserve

(350,000)

  0

(350,000)

225-9103

Transfer from Parks, Gardens & Reserves Reserve

(250,000)

(52,704)

(302,704)

130-C3226-1299-9450

CWKS No 2596

(125,000)

0

(125,000)

130-C3226-1299-9450

CWKS No 1360

(5,000)

0

(5,000)

Net Total

$0

$0

$0

 

The estimated total value of the Requirements over the full contract term is outlined below:

 

 

Item

Amount

Pindan Projects WA Pty Ltd contract value

$685,265.04

City Project contingency (not part of contract award)

$10,000.00

Estimated total value of the Requirements over the full contract term

$695,265.04

Current available budget

$642,560.58

Budget amendment recommended

$52,704.46

 

A drawdown of additional funds from the Parks, Gardens & Reserves Reserve of $52,704 is sought by Council. A budget amendment as per Table 1 (above) is recommended for this purpose.

 

The Parks, Gardens & Reserves Reserve has a current available balance totalling $144,563. With the proposed amendment, the balance of the Parks, Gardens & Reserves Reserve will reduce to $91,858.

Stakeholder Consultation

As stated earlier in this report, the City undertook consultation with businesses and the community for the upgrade of Mitchell Park in the Busselton CBD. The City has used feedback from both business and community to develop a design that creates a connection with surrounding shops and cafés, emphasises the importance of open green space, and improves pedestrian access to the public open space.  

Significant internal stakeholder engagement has also been undertaken to develop the final detailed design.

Risk Assessment

An assessment of the potential implications of implementing the officer’s recommendation has been undertaken using the City’s risk management framework, with the intention being to identify risks which, following implementation of controls, are identified as medium or greater. There are no such risks identified, with the Preferred Tenderer assessed as being capable of delivering the services to a suitable service level. 

Options

As an alternative to the proposed recommendation, the Council could:

1.         Award the tender to an alternative tenderer. In the view of the officers, this could result in the tender being awarded to a tenderer that is not most advantageous to the City.

2.         To not award the tender. This would mean re-advertising the tender, resulting in significant delays to both the contract award and the renewal and upgrade of Mitchell Park.

 

For the reasons provided in this report, the abovementioned options are not recommended.

CONCLUSION

It is recommended that Council accept the tender RFT 01-21 Mitchell Park Civil & Landscaping Works from Pindan Projects WA Pty Ltd as the most advantageous to the City, subject to minor variations to be negotiated by the CEO, not exceeding the overall project budget. A budget amendment as per Table 1 (above) is recommended for this purpose.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

The selection of the Successful Tenderer can be made immediately after the Council has endorsed the officer recommendation, subject to successful negotiation in accordance with the officer recommendation.

 

Should Council adopt the officer recommendation, it is anticipated that the contract for construction will commence in April 2021 and be completed in July 2021.

 

 

 


Council

49

24 March 2021

14.1

Attachment a

Mitchell Park Landscape Stage 1A Layout Plan

 


Council                                                                                      57                                                                  24 March 2021

 

16.2           LONG TERM FINANCIAL PLAN 2021/22 - 2030/31

STRATEGIC GOAL

6. LEADERSHIP Visionary, collaborative, accountable

STRATEGIC OBJECTIVE

6.4 Assets are well maintained and responsibly managed.

SUBJECT INDEX

Long Term Financial Plan

BUSINESS UNIT

Financial Services

REPORTING OFFICER

Strategic Financial Management Accountant - Ben Robinson

AUTHORISING OFFICER

Director Finance and Corporate Services - Tony Nottle

NATURE OF DECISION

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

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   Draft LTFP 2021/22 2030/31  

 

Council Decision and Officer Recommendation

C2103/052              Moved Councillor L Miles, seconded Councillor P Carter

That the Council endorses the Draft Long Term Financial Plan 2021/22 to 2030/31 as provided in Attachment A as its current Long Term Financial Plan to be used as a guiding document for the City of Busselton.

CARRIED 9/0

En Bloc

 

EXECUTIVE SUMMARY

Council is presented with the Draft Long Term Financial Plan (LTFP) 2021/22 to 2030/31 following recent workshops held in November 2020 and February 2021.

 

The LTFP has taken into consideration a number of factors including the impacts of COVID-19, economic factors and trends and a range of assumptions including rates growth, interest rates, environmental factors and community needs.

 

This report requests Council to consider acknowledging and receiving the Draft LTFP and to endorse its content as a guiding document for the City of Busselton.

 

BACKGROUND

Council’s previous LTFP (2020/21 to 2029/30) was a document that was developed predominately prior to and during the State of Emergency COVID-19 lockdown and didn’t include a number of subsequent associated impacts in March 2020.

 

As a result, staff have been preparing a new version of the LTFP with revised assumptions. This has been workshopped with Council over the 2020/21 financial year. In recognition of the potential impacts on the City, Council acknowledging this additional work being undertaken when presented with the current LTFP at its meeting held on the 10 June 2020 where it resolved:

 

That the Council:

1.         Acknowledges and receives the Draft Long Term Financial Plan 2020/21 to 2029/30 (Version A – Pre COVID-19) as provided in Attachment A as a guiding document for the City of Busselton;

2.         Acknowledges that further remodelling of an updated Long Term Financial Plan 2020/21 to 2029/30 will need to occur that takes into consideration the impacts of the COVID-19 pandemic on the City’s operations and the 2020/21 Annual Budget; and

3.         Acknowledges the recommended projects and priorities listed within the above plans may be subject to change given the uncertainty in relation to future revenue and government funding due to the COVID-19 pandemic.

This document has since provided guidance in our budgeting and planning throughout the year.

In order to develop the draft 2021/22 to 2030/31 Draft LTFP as provided in Attachment A, Council took part in two workshops on the 24 November 2020 and 17 February 2021.

Council staff have further developed the document to consider the following:

·        updated assumptions and predictions

·        updates to capital projects and funding

·        inclusion of additional projects identified by Council

·        revised growth and increment factors

·        balancing Asset Management requirements within existing capacity

·        adjusting to delays and impacts as a result of the pandemic

Additionally, over the course of the 2020/21 financial year, the City has embarked on a major review of its Strategic Community Plan. As a result, the key themes and feedback from the community has ensured that a focus on key areas that were identified by the community has been allocated funding to address these needs where possible.

OFFICER COMMENT

Local governments are required to plan for the future of their districts in accordance with the Local Government Act 1995. This is achieved by adhering to the Integrated Planning and Reporting Framework (IPRF) developed by the Department of Local Government, Sport and Cultural Industries (DLGSC) which incorporates the development and adoption of a number of key documents, including a Strategic Community Plan (SCP), a Corporate Business Plan (CBP) and the LTFP.

 

Whilst a SCP sets out the community’s aspirations, visions and objectives over a 10-year period, a more detailed CBP identifies and prioritises the principal strategies and activities required to achieve the higher level SCP outcomes, over a four-year time frame.

 

The LTFP component is required to demonstrate a local government’s financial capacity to resource its identified CBP actions, and also its ability to resource its asset management plan obligations and projected workforce growth requirements, as detailed in the relevant plans. The Financial Plan also identifies major areas of income and expenditure anticipated over the balance of the 10-year time frame.

 

It is also important to note that the LTFP is used predominately as a planning tool. As such it includes many assumptions (outlined within the LTFP) and includes several projects that and/or proposals that in some cases:

1.         have been approved by Council and are in progress;

2.         have been considered by Council but are yet to receive final approval;

3.         have only been considered by Councillors on a strategic level; and

4.         are operational in nature and based on the requirement to provide Business as Usual (BAU) to maintain assets, services and infrastructure in accordance with management and various other plans.

10 years is a substantial period to provide definitive and accurate financial forecasts. It must be  acknowledged that the LTFP strives to achieve a higher level of accuracy (based on the identified assumptions) in years 1 to 5, however years 6 – 10 are more than likely a moderate level of accuracy. To alleviate these issues, the LTFP is reviewed and updated regularly.

 

LTFP Development

The LTFP uses the 2020/21 Annual Budget as the base year. The plan applies a number of assumptions which are used to extrapolate the LTFP out for a 10-year period. The table below outlines some of the assumptions applied throughout the plan to assist in forecasting expenditure, income and timing.

Description

Commentary

Rates

Governs the increase to rates revenue each year. Does not relate to natural growth in the rates as a result of continued residential development. Expected increases to rates revenue follow a nil % increase in the 2020/2021 financial year.

Operating Grants, Subsidies & Contributions

Relates to external funding received which is used for ongoing operating expenditure.

Fees and Charges

Forecasts a small increase to fees charged for use of City facilities and provision of related services across the district.

Interest on Investments

Forecast reasonably low in the initial few years to reflect the current monetary policies in Australia’s recovering economy.

Other Revenue

Largely related to sale of scrap materials and fines paid.

Consumer Price Index (Perth)

Whilst this increment factor does not affect many operating expenditure items, CPI is used in the LTFP to ensure transfers to/from reserves, and certain capital projects, are updated each year to reflect the time value of money.

Employee Costs

This is kept in line with the current trends present in WA local government, to reflect the City’s commitment to keeping pace with other Councils and remaining equitable at the same time.

Materials and Contracts

Although quite similar to CPI, Materials and Contracts is expected to escalate faster due to the expected strength in the construction sector. Real increases are based on growth in facility service levels expected over the ten year period.

Utility Charges

Moderate increases are forecasted as a result of energy tariffs that could out-pace CPI by a margin of 0.50 – 1.00%. This is an overly conservative approach to ensure utility costs are not under-represented in the later years of the LTFP.

Insurance Expenses

Based on historical expectations of contractual increases.

Interest on Borrowings

Based on the forecast 10-year Western Australian Treasury Corporation Indicative Rates.


 

Other Expenditure

Forecasted to escalate more than CPI in most years, including expenditure relating to donations/contributions, elected members’ expenses, lease liabilities, rating valuations, indicative guarantee expenditure, marketing, advertising, sponsorships, catering and other miscellaneous categories.

 

These assumptions are made based on economic forecasts and data from a range of sources including Western Australian Local Government Association (WALGA) and the Western Australian Treasury Corporation (WATC) and the Western Australian Treasury Department (Treasury).

 

The LTFP continues to invest funds into the improvement of the City’s built assets with an increase in funds applied to specific Reserve Accounts. These sources of funds are then used to increase investment in the City’s assets. Funds are also allocated to ensure that new assets received from developers and the community are adequately funded and maintained. This is a continuation of the Council’s long term strategy for its asset management.

 

The LTFP operates on a series of conservative assumptions with revenue set to grow modestly, whilst costs are set to grow quite significantly. As the LTFP is subject to a holistic review on an annual basis, assumptions are updated with each revision. Prudent fiscal management would suggest that the LTFP should plan for a scenario with a less than optimistic outcome; in the case that performance exceeds expectations, adjustments can be made at that time, but not before.

 

Following on from the approach in previous years, the LTFP remains a cornerstone of the decision-making process of the Council. Consequently, it is a ‘living document’.

 

Rates & Rating Levels

As with previous years, the emphasis has been placed on keeping rates as low as possible. This is on the back of the 0% increase that was applied to the 2020/21 Budget in response to the impacts of COVID-19.

 

Council’s previous LTFP had indicated an increase of 2.75% for the 2020/21 financial year. This decision alone has a negative impact with “potential” lost revenue over the life of the plan of approximately $12M.

 

Rating levels factored into the plan are outlined in the table below and have also been compared with the previously endorsed proposed rating increases. Over the life of the LTFP, rates are not expected to increase over 3% in any year.

 

On average, when compared with the old LTFP a total of 6.1% has been reduced in rating increases over the life of the plan. This equates to approximately $3.37M reduction in rates in today’s dollars.

 

 

This table outlines the effect that the work undertaken in developing the draft LTFP has had a significant impact on reducing the predicted rate increases into the future, effectively meeting Council’s expectations. This has been achieved while still accounting for a healthy capital works program, which includes the construction of the proposed Busselton Performing Arts and Convention Centre (BPACC).

 

Capital Works Program

A key component of the LTFP is the capital works program. This section outlines individual project proposed to be undertaken over the next 10 years. These are based on the known projects listed in various existing City strategies and plans. This section is split into 7 categories being:

1.         Asset Management, Renewal & Minor Upgrades

             This section outlines the commitments to maintaining and improving the condition City’s assets including roads, buildings, footpaths, public open space, recreational reserves, plant and equipment etc.

             The LTFP indicates an improvement in Asset Management Plan funding and is highlighted on page 3. It is important to note that the Plan indicates an increase in funding for level 1 hierarchy buildings (GLC, Admin Building NCC etc.) from a rate of 1.75% to 2.5% over time.

2.         Waste Management

             These initiatives provide detail on the capital commitment to a waste collection, recycling, site remediation and other waste initiatives within the City.

             In order to ensure that these initiatives can be achieved, the LTFP assumes an increase in the waste levy will be required over time. These are highlighted on page 17 of the Plan.

 3.        New & Continuing Projects – Organisational

             This section identifies major capital projects that are committed, planned or programmed that are not included in the other sections. These include capital costs associated with major traffic improvements, Dunsborough non-potable water network, fire brigade facilities, strategic land acquisitions, CCTV program establishment, LED streetlighting program, Old Dunsborough Boat Ramp project, Dunsborough library proposal etc.

4.         New Projects - Recreational Strategy

             The City recently adopted a Strategic Recreational Facilities Plan. This Plan also had a number of capital projects that were recommended to cater for the City’s current and future sporting demand. These projects are captured here which include Dunsborough Lakes Sporting Precinct (new), Vasse Sporting Facilities, Geographe Leisure Centre upgrade, Yalyalup Community Oval and facilities, Naturaliste Community Centre upgrades, lighting strategy for sporting facilities, Bovell Park upgrade, aquatic facilities expansion/consideration.

5.         Major Projects – Cultural

             This section specifically outlines the capital associated with the BPACC. And the proposed upgrade to the ArtGeo Complex.

6.         Busselton / Margaret River Airport – Development

          Capital projects associated with the development of the BMRA.

7.         Potential New Projects – Initiatives

          This section outlines projects that are being considered by the City that have yet to be planned and funded. The City is however, mindful of the needs and requests for these types of programs/projects and has included this section to assist with addressing community feedback in the City’s SCP workshops.

 

Overall, the City plans to invest over $316M in capital projects over the next 10 years. It is even more important that the City continues to embark on a steady capital program particularly in light of the current COVID-19 pandemic as capital works programs are able to stimulate the local economy.

Long Term Borrowings

The City’s loan borrowings include loans specifically for assets as well as some self-supporting loans for community groups. With existing loan borrowing rates available to the City at approximately 1.8 – 2.5% the LTFP includes borrowings for major projects such as the BPACC and upgrades to existing and new sporting facilities,  in accordance with the Sport and Recreation Strategy.

 

The City’s borrowings will peak in year 5 (2025/26) of the LTFP at $33.6M. At the end of the 10 year period, it is expected that the outstanding loan balance reduce to $28.2M in year 10 and significantly reduced to $9.5M in year 15 as a result of larger loans being paid in full. The City’s predicted debt ratio does not fall below the upper standard indicated by the DLGSC of 4.0.

 

Importantly, there is a large self-supporting loan proposed (subject to further consideration by external parties) of $4M to assist the Busselton Jetty Inc. in the Australian Underwater Discovery Centre Project. This debenture also affects the City’s debt ratio, although does not cause any concern.

 

City Reserves

The LTFP includes the existing 77 reserve accounts maintained which carry a total amount ranging from $41.65M in year 1 to $66.76M in year 10.  A large number of these reserves are established in order to maintain key assets within the City such as the Busselton Jetty, BMRA, GLC, City buildings, footpaths and cycle ways and road asset infrastructure. Each reserve is established for a purpose to ensure that no burden is placed on rates increases for unexpected expenditure.

 

The LTFP shows expenditure from Reserve funds totalling $260M over the life of the plan on City projects and assets.

 

Rates growth and projections

The City of Busselton is in a fortunate position where consistent growth prevalent within the annual rates base as the population grows within this popular area of the South West. The LTFP has taken an average rates income growth rate of its rate base of 1.5%. This rate is reviewed annually. Due to the recent stimulus packages provided by Government for housing construction, the City has experienced a significant boost in building applications and development approvals. As such, the LTP has factored in small increase in annual growth to 1.75% but maintained an ongoing annual assumption of 1.5% throughout the plan.

 

In addition, rates levels have been set to allow for the City’s asset management commitment and requirements. Rates increases range between 2.5%  in year 1 to 2.95% in year 10.

 

Employee Costs

The City’s largest category in its operating expenditure costs are the employee costs. These costs range from 1.75% in year 1 to 2.25% in year 10. The City has also modelled the additional services predominately around the BPACC, and employee growth is expected to focus on this area of the operating expenses in the first 4 years of the plan.

 

Annual Surplus / Deficit Position

The annual surplus and deficit position of the LTFP maintains modest levels with peak deficit of $336K in year 2 to a peak surplus of $946K in year 8. However, over the life of the LTFP there is a surplus of 2.35M by the end of year 10. The deficits indicated in years 2 and 3 equate to less than 1% of annual rates income. It is expected that through the annual budget process that Council will identify measures to ensure a balanced budget as with previous years. As the LTFP is adjusted annually, further changes can be made to rectify the net position at a later stage.

 

Community Strategic Plan Major Review

Throughout the end of 2020 and the beginning of 2021, the City has embarked on the major review of its Community Strategic Plan. This document is a high level 10 year visionary document that outlines key themes for the future. Additional funding was provided to address some major themes emanating from the feedback received from the community.

 

This included additional investment in environmental initiatives such as:

·        Vasse River Waterways improvements being prescribed;

·        Coastal erosion issues and protection; and

·        Consideration of additional waste initiatives such as FOGO, waste to energy investigations and rehabilitation of landfill sites.

 

Council has also allocated funding to invest in its corporate IT infrastructure to better analyse and report on its operations to ensure efficiency since the last major investment in the City’s Enterprise Resource Planning system was over 13 years ago.

Statutory Environment

Local governments are required as per Section 5.56 of the Local Government Act 1995 to plan for the future of its district. Regulations 19C and 19DA of the Local Government (Administration) Regulations 1996 provide specific guidance to local governments in relation to planning for the future.

 

The DLGSC has issued an Integrated Planning and Reporting Framework and Guidelines, and the LTFP is consistent with these requirements.

 

The IPRF looks to integrate matters relating to resources, including asset management, workforce planning and also long-term financial planning. The LTFP is a guiding tool used within this framework.

Relevant Plans and Policies

The LTFP has been constructed and informed by the City’s current SCP, Workforce Plan, 2019/20 Annual Budget and the current CBP.

Financial Implications

The financial implications of the LTFP are detailed within the Plan but endorsing the Plan does not result in approval being given to implement any actions contained within it. Priorities will be included within the City’s annual budget which will be considered in July 2020. The LTFP reflects the Council’s broad strategic financial direction over the next ten year period, in line with its SCP and CBP.

Stakeholder Consultation

The LTFP reflects the community’s aspirations, vision and objectives as included in the SCP 2017 (Review 2019), and the recent consultation processes for the new SCP 2021. It is consistent with the principal strategies and activities within the CBP 2020 - 2024. Extensive consultation has taken place during the development of a number of strategies including the Sport and Recreation Facility Master Plan. These consultation processes have informed and shaped the LTFP.

 

Workshops were also held with Councillors and the Senior Management Group on in November 2020 and February 2021.

 


 

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. The following risks have been identified:

Risk of Financial Misstatement

Risk Category

Risk Consequence

Likelihood of Consequence

Risk Level

Financial

Insignificant

Possible

Low

 

The LTFP is a guiding document only, and as such is designed as a planning tool to aid Council in making decisions regarding the funding and planning of City development. It is also a living document, with a formal adoption each year. Business developments occurring from week to week can be tested in the document to determine whether preliminary decisions can be made with agility.

 

Nevertheless, due to the inherent nature of a financial forecast, the risk that projections may differ in comparison to reality is a real and likely possibility. Assumptions about linear growth, interest rate fluctuations and identified timeframes for capital project completion may not necessarily be achieved in reality. 

Therefore, the LTFP should be used as a guide only.

Options

As an alternative to the proposed recommendation the Council could further amend the content of the LTFP as it currently stands.

 

As the current document has the most up to date information at this point in time and is a guide only, the option above are not recommended.

CONCLUSION

The LTFP has been developed over an extensive period and as such has been through many iterations. It has been updated to reflect the outcomes of Council workshops. It is important to effectively “draw a line in the sand” at the point in time where significant work was undertaken to develop the LTFP. This allows Council to set a direction and guidance to staff as the City’s plans and actions are developed in the short to medium term.

 

It is recommended that the Council acknowledges and receives the LTFP as presented, with an understanding that the LTFP will be continually updated internally on a regular basis.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Subject to endorsement, the LTFP will act as a guiding document in developing the Council’s 2021/22 budget.

 


Council

113

24 March 2021

16.2

Attachment a

Draft LTFP 2021/22 2030/31

 
























































                                                                                                                                                                                                                        


Council                                                                                      116                                                                24 March 2021

 

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 is simply for information purposes and noting

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   Correspondence from Police Commissioner and State Emergency Coordinator  

 

Council Decision and Officer Recommendation

C2103/053              Moved Councillor L Miles, 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 – February 2021 

 

17.1.3       Correspondence from the Police Commissioner and State Emergency Coordinator formalising current arrangements for Environmental Health Officers

CARRIED 9/0

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.

 

EOI 02/20 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.

·    The CEO under delegation has shortlisted all seven respondents as acceptable tenderers. 

·    The original timeframe for issuing the Request for Tender to the shortlisted tenderers was December 2020, but has since been revised to 20 March 2021 with the tender to close on 23 April 2021.

 

RFT 01-21 MITCHELL PARK UPGRADE

·    Requirement - a contractor to carry out civil and landscaping works as part of the Mitchell Park Upgrade.

·    A request for tender was advertised on 16 January 2021 and closed on 16 February 2021. 

·    5 tenders were received.

·    The value of the contract exceeds the CEO’s delegated power for accepting tenders (DA 1 – 07 Inviting, Rejecting and Accepting Tenders).

·    A report to Council for deciding which tender to accept will be included in this Council meeting agenda.

 

PQS 01/21 PEST AND WEED CONTROL SERVICES

·    Requirement: To establish a panel of pre-qualified suppliers for provision of pest and weed control services as follows:

¾  Pest and weed control within City urban areas, including road verges, cycle-ways, footpaths, kerb-lines, drainage infrastructure and public open space.

¾  Pest and weed control within City rural areas, including road verges, cycle-ways, footpaths, kerb-lines, drainage infrastructure and public open space.

¾  Inspection of and pest and weed control at various bridge infrastructure managed by the City.

·    An invitation to apply was advertised on 6 February 2021 and closed on 4 March 2021.

·    4 applications were received. 

·    Applications will be evaluated and the panel of pre-qualified suppliers will be established by the CEO under delegation DA 1 – 10 Panels of Pre-Qualified Suppliers.


RFT 02-21 BUSSELTON FORESHORE EAST UPGRADE

·    Requirement - a contractor to carry out civil and landscaping works as part of the redevelopment of the Busselton Foreshore in the area between Brown Street and Georgette Streets. 

·    A request for tender was advertised on 16 January 2021 and closes on 23 March 2021. 

·    The value of the contract is likely to exceed the CEO’s delegated power for accepting tenders (DA 1 – 07 Inviting, Rejecting and Accepting Tenders).

·    It is anticipated that a report to Council for deciding which tender to accept will be included in the 14 April 2021 Council meeting agenda.

 

RFT 05-21 PROCESSING AND DISPOSAL GREEN WASTE

·    Requirement - a contractor to process green waste at the City’s waste facilities and dispose of processed green waste. 

·    A request for tender was advertised on 6 March 2021 and will close on 8 April 2021. 

·    The value of the contract is expected to exceed the CEO’s delegated power for accepting tenders (DA 1 – 07 Inviting, Rejecting and Accepting Tenders).

·    It is anticipated that a report to Council for deciding which tender to accept will be included in the 12 May 2021 Council meeting agenda.

 

17.1.2       Donations, Contributions and subsidies Fund – February 2021 

 

The Council allocates an 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 endeavours 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.

 


 

Three applications were approved in February 2021, totalling $1,667.90, as outlined in the table below:

 

Recipient

Purpose

Amount

Busselton Repair Co-op

The Busselton Repair Co-op is a recently formed community group whose purpose is to guide people in fixing their broken possessions to reduce waste to landfill. Monthly Repair Co-op days are held at the People Place in Busselton. All members of the community are welcome to attend at no cost and learn how to repair their broken possessions.

Funding requested for marketing materials to broaden community appeal on event days and to cover the cost of shared equipment required to undertake repairs.

$967.90

Bully's Campout Show and Shine

Funding requested to assist with covering the cost of COVID safety related expenses - hand sanitiser, surface cleaners etc.  required to host the hot rod ‘Show and Shine’ held at the Busselton Foreshore on 20 February 2021.

$200.00

Core of Wellbeing Dunsborough

Funds requested to assist with covering the cost of facilitators to present a free mental health workshop open to community members of all ages and genders to support conversations around mental health. The workshop to be held at The Movement Fitness and Wellbeing, Dunsborough on 24 March 2021.

$500.00

 

February Total

 $1,667.90

 

17.1.3       Correspondence from the Police Commissioner and State Emergency Coordinator formalising current arrangements for Environmental Health Officers 

 

Correspondence from the Police Commissioner and State Emergency Coordinator, Mr Chris Dawson, formalising current arrangements for Environmental Health Officers relating to monitoring and compliance under the COVID-19 Contact Register Directions, is provided at Attachment A.

 

 


Council

118

24 March 2021

17.1

Attachment a

Correspondence from Police Commissioner and State Emergency Coordinator

 


 


Council                                                                                      119                                                                24 March 2021

 

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

12.1           Finance Committee - 10/3/2021 - LIST OF PAYMENTS MADE - JANUARY 2021

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 is simply for information purposes and noting

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   List of Payments - January 2021

 

This item was considered by the Finance Committee at its meeting on 10/3/2021, the recommendations from which have been included in this report.

 

Council Decision and Committee Recommendation and Officer Recommendation

C2103/054              Moved Councillor P Cronin, seconded Councillor J Barrett-Lennard

That the Council notes payment of voucher numbers M118513 – M118591, EF076679 – EF077259, T7541 – T7543, DD004368 – DD004389, together totalling $7,800,415.60.

CARRIED 9/0

 

DISCLOSURE OF INTEREST

Date

24 March 2021

Meeting

Ordinary Council

Name/Position

Cr Paul Carter, Councillor

Item No./Subject

12.1 List of Payments Made - January 2021

Type of Interest

Impartiality Interest

Nature of Interest

I declare an Impartiality Interest in relation to Agenda Item 12.1, specifically cheque #77056, as I am an employee of Afrgi.

 

EXECUTIVE SUMMARY

This report provides details of payments made from the City’s bank accounts for the month of January 2021, 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, 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 January 2021 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 January 2021 is presented for information.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.


Council

128

24 March 2021

12.1

Attachment a

List of Payments - January 2021

 








 


Council                                                                                      135                                                                24 March 2021

 

12.3           Finance Committee - 10/3/2021 - 2020/21 BUDGET REVIEW

STRATEGIC GOAL

6. LEADERSHIP Visionary, collaborative, accountable

STRATEGIC OBJECTIVE

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   Detailed Budget Review Schedule 2020-21

Attachment b    Financial Activity Statement YTD December 2020

Attachment c    Capital Projects & Acquisitions YTD January 2021

Attachment d   Amended Budget Review Table

 

This item was considered by the Finance Committee at its meeting on 10/3/2021, the recommendations from which have been included in this report.

 

OFFICER RECOMMENDATION

That the Council, pursuant to Regulation 33A of the Local Government (Financial Management) Regulations, adopts the 2020/21 Annual Budget Review as presented within this report.

 

Council Decision and Committee Recommendation

C2103/055              Moved Councillor S Riccelli, seconded Councillor P Cronin

That the Council, pursuant to Regulation 33A of the Local Government (Financial Management) Regulations, adopts the 2020/21 Annual Budget Review as presented within this report, inclusive of administrative corrections to the table on page 50 of the Agenda as per Attachment D.

CARRIED 9/0

BY ABSOLUTE MAJORITY

 

Reasons:              The table on page 50 of the Agenda contained administrative errors and the correct table was presented to the Committee during the meeting.

 

EXECUTIVE SUMMARY

Between January and March in each financial year, a local government is to carry out a review of its annual budget for that year. The Council is required to consider the review submitted to it after consideration by the Finance Committee, and determine (by absolute majority) whether or not to adopt the review, any parts of the review or any recommendations made in the review within 30 days of the review being undertaken.

 

BACKGROUND

Local governments are required to carry out an annual budget review and in accordance with Regulation 33A of the Local Government (Financial Management) Regulations.

 

The purpose of an annual budget review is to ensure that a local government conducts a review of its financial performance at an appropriate time in the financial year. This is to identify significant budget variances and recommend remedial action as necessary, prior to the end of the financial year.

This report, based on the City’s financial performance for the financial year to date as at 31 December 2020, has been compiled to fulfil the statutory reporting requirements of the Local Government Act 1995 and associated Regulations in respect of the annual budget review process.

OFFICER COMMENT

The budget review process was conducted between 7 January and 10 February 2021, via a series of workshop meetings with each of the manager/coordinator groups across the entire organisation (14 in total).

 

This review takes into account a number of factors including what has occurred during the first six months of the fiscal year, the likely operating environment over the remaining six months under the current economic climate, and the most likely impact on the City’s net current position. 

 

The attached Detailed Budget Review Schedule (Attachment A), outlines the estimated variations from the existing amended budget position on a line by line basis, showing an estimated total positive net variance to the budgeted net current position of approximately $1.9M.

 

A copy of the Financial Activity Statement YTD December 2020 (“FAS”) has also been attached (Attachment B), including columns that show the net surplus / (deficit) variance totals for each Nature & Type category.

 

For ease of reference, the net surplus / (deficit) variance totals for each of the affected Nature & Type categories from the FAS are summarised in the table below.

 

Affected FAS Categories by Nature &Type

Forecast Surplus / (Deficit) Variance to Amended Budget at Year End

 

$

Revenue from Ordinary Activities

 

Rates

56,832

Operating Grants, Subsidies and Contributions

652,934

Fees & Charges

49,574

Other Revenue

(43,625)

Interest Earnings

(14,935)

 

700,779

Expenses from Ordinary Activities

 

Employee Costs

815,051

Materials & Contracts

1,368,994

Utilities (Gas, Electricity, Water etc)

50,190

Other Expenditure

2,125,549

 

4,359,784

 

 

Operating Surplus / (Loss)

5,060,564

 

 

Capital Revenue & Expenditure

 

Non-Operating Grants, Subsidies and Contributions

(8,000)

Capital Expenditure

23,300,000

Proceeds from Sale of Assets

(2,000)

Proceeds from New Loans

(7,500,000)

Combined net Impact from reserves & restricted

(18,940,307)

 

 

Net Current Position - Surplus / (Deficit)

1,910,256

Commentary around the most significant factors contributing to the more material variances in the table above is provided below.

 

Rates

After the government stimulus measures were introduced there was flood of development applications and a frenzy of planning approval.  The actual lag between that and the eventual rating of the vacant land and/or completed buildings has meant that estimated surpluses in relation to our budgeted interim rating forecasts have been trimmed back to a more conservative level.

 

The impact of this rating growth is projected to fall mainly over the 2022 calendar year, and even into 2023.

 

Operating Grants, Subsidies and Contributions

This category contains the reimbursements for insurance claims.  In April and May of 2020, the district (and the state) was hit by two major storm events.  The finalisation and payment of the claims lodged by the City was only recently completed.  This makes up the majority of this variance, as it was largely unknown if this was going to be realised at the time of finalisation of the 20/21 budget.

 

Fees & Charges

The lingering economic downturn effects of the COVID crisis has meant that the fees and charges generated from certain activities has been severely, if not completely curtailed.

 

The main areas predicted to have a net negative effect against budget include:

·        recreation centres - $90K;

·        venue, facility and property hire and rental - $60K;

·        cruise ship berthing - $95K;

·        various airport revenue streams - $285K, although this is absorbed by the Airport Reserves, so will not affect the municipal account (“muni”).

 

This will however be more than made up for by the unpredicted spike in the various property development and building fees and charges, which are estimated to produce a net positive variance in excess of $380K.

 

Other Revenue

The projected negative variance of $44K is mainly due to much lower sales of scrap materials from the waste facilities.  Almost all of this is offset against the transfers from the waste reserve, so the impact on the muni net current position is negligible.

 

Interest Earnings

The reduction in return on City deposits has had an immediate effect on this year’s financial position in that interest earnings will not achieve budget levels. Current projections are as follows:

 

Budgeted

Projected

Surplus /

 

June '21

June '21

Deficit

Municipal Funds

$90,250

$75,315

-$14,935

Reserve Funds

$562,684

$403,453

-$159,231

 

While original 2020/21 budget projections were conservative, end of year results will fall well short. As the RBA is driving down rates over a number of years, it is probable that returns will be low for the foreseeable future and accordingly the effect on the future budgets and long-term plans will need to be considered in due course.

The deficit in the reserve funds interest is offset against a corresponding reduced transfer to reserves, thus reducing the muni impact to only $15K.

 

Employee Costs

There is an estimated savings against budget to 30 June of approximately $815K, with $128K of that funded from reserves, therefore estimated net muni savings of $687K is predicted.

 

Main contributors include:

·        Approximately $210K in recreation services (GLC, NCC, Admin), as a result of significantly reduced or cancelled programs due to extended COVID restrictions, plus the coordinator’s position has not yet been filled.

·        Reduced spending in employee related activities such as training, employee assistance program, staff assessments and drug & alcohol testing amounting to approximately $67K.

·        Estimated savings in Governance of approximately $80K against budget, mainly due to the fact that at the time of budgeting it is never 100% known where a disability trainee will be placed, only that the organisation will be doing so, and hence it is budgeted here.  This person was placed at the GLC, and an internal management adjustment to move the budget over to that area is currently underway.  Other contributing factors include some temporary reduction in hours, unplanned at the time of preparing the budget, and some initially planned minor increases were have not been passed on.

·        Timing and/or re-scoping of many scheduled programs of works in Park & Gardens amounting to approximately $100K.

·        Postponement of the commencement of a budgeted position for the BPACC amounting to $44K.

·        The rest being made up of savings in numerous areas, deriving from:

o   budgeted increases not being passed on;

o   timing delays in the replacement of staff who have resigned;

o   non-replacement of some positions to assist with the revised management structure as informed to Council late last year.

 

Materials & Contracts

This category indicates a potential savings to budget of $1.4M.  This is reduced by the fact that $1.2M of these savings would have been funded from reserves, so therefore the transfer from reserves back into muni is also reduced by this amount.  This leaves a forecast net savings of $201K.

 

It should be noted that subsequent to the end of financial year audit for the 2019/20 year, an internal investigation was undertaken to quantify the value of consumables stock being held at various City locations (mainly the depot).  The result of this was that $643K of stock items that need to be recognised in the accounts which had previously been expensed as part of the Materials & Contracts category, on various activities and projects.

 

If this non-cash credit adjustment is taken off, the actual forecast net impact on the muni net current position is a $442K deficit.

 

The biggest contributor to this deficit is the overspend of approximately $550K in road maintenance, which was planned and scheduled in lieu of the insurance reimbursement for the storm damage claims made for the events in April and May 2020 (see commentary above).  The estimate for these claims amounted to approximately $700K.

 

 

 

Utilities

Savings of approximately $50K are forecast due to savings on the landline charges in the main administration building, plus savings on the electricity accounts across most of the City facilities and buildings. The reduced occupancy and hiring of the various facilities played a large part creating the lower usage.

 

Other Expenses

Of the $2.1M forecast savings, $2M will remain in reserves, so will not have an impact on the net current position. The remaining $119K savings relates to certain travel and event activities that have been cancelled or reduced because of COVID restrictions.

 

Non-Operating Grants, Subsidies and Contributions

$8K of previously paid developer funds for the Vasse Village that will not be utilised for cultural planning as budgeted, and will remain in the reserve.

 

The net effect on the municipal net current position will be nil.

 

Capital Expenditure

The schedule of Capital Projects & Acquisitions YTD as at January 2021 (Attachment C) has been reviewed in conjunction with officers. 

 

Of the total annual amended budget of $60M, it is estimated that approximately $26.7M will still be in progress come 30 June 2021, and will need to be carried forward to be re-listed (and/or re-scoped), in the 2021/22 budget.

 

A summary of the detailed listing in Attachment C is shown below:

 

Description

2020/21 Actual Spend to 19/2      (B)

2020/21
Amended Budget      (A)

Remaining Budget        (A - B)

Forecast Under / (overspend) to 30/6

Land

                      -  

150,000

150,000

150,000

Buildings*

2,878,026

17,304,059

14,426,033

10,000,000

Plant & Equipment

888,978

2,510,340

1,621,362

500,000

Furniture & Office Equipment

201,660

461,088

259,428

50,000

Roads

6,232,304

15,170,848

8,938,544

3,000,000

Bridges**

-  

6,399,989

6,399,989

6,399,989

Car Parks

943,699

1,855,535

911,836

100,000

Footpath and Cycleways

203,463

1,739,745

1,536,282

1,000,000

Parks, Gardens & Reserves***

2,851,827

13,486,482

10,634,655

5,000,000

Airport Industrial Parks

146,973

1,256,653

1,109,680

500,000

 

 

 

 

26,699,989

 

*Predominantly relates to the BPACC project.

**Timing is heavily influenced by MRWA who have confirmed that no bridgeworks will be completed and invoiced by 30 June 2021.

***Mainly due to the Dunsborough Non-Potable Water Network, and the Dunsborough Lakes Sporting Precinct Stage 1.

 

These carry-forwards are entirely funded from reserves (and/or grants that are put aside in reserves), and the non-drawdown of the construction loan for the BPACC.  As such, there will be a nil impact on the net muni position at year end.

 

General Commentary

Major factors influencing estimated budget positions described above:

·        The lingering effects of the initial onset of the pandemic in the later part of the 19/20 financial year has meant that many of the early 20/21 budget projections set prior to the onset, early in the 2020 calendar year, are now out of date and, in some cases, inaccurate.  Compounding this is the fact that the budget process was not finished until well after the onset, so many later projections were set at intentionally conservative levels.

·        In the latter parts of the budget review process, but before finalisation of this report, parts of Western Australia, including the South West region, were forced into a week of hard lockdown due to a COVID-19 infection in Perth.  This may have rendered certain projections to June 30 somewhat obsolete.

·        Uncertainty surrounding how economic stimulus was going play out in the community and how certain aspects of the community were going to be affected by lingering effects of the pandemic (business closures etc.) has meant that much of the City’s activity was a lot more “reactionary”, rather than following strict budgeted pathways.

 

The result of this is that many planned operational activities and large parts of the capital works program will not be completed in line with the budgeted schedule, giving the effect of a significant cost saving against budget. It is important to note that many of the projects are seasonally impacted and may correct themselves in the ensuing 6 month period.

Components of the unspent capital and operating expenditure budgets are currently being assessed for re-listing in the Council’s 2021/22 draft budget, if required.

Statutory Environment

Regulation 33A of the Local Government (Financial Management) Regulations is set out below:

 

Regulation 33A.                Review of budget

(1)         Between 1 January and 31 March in each financial year a local government is to carry out a review of its annual budget for that year.

             (2A)     the review of an annual budget for a financial year must —

(a)      Consider the local government’s financial performance in the period beginning on 1 July and ending no earlier than 31 December in that financial year; and

(b)      Consider the local government’s financial position as at the date of the review; and

(c)       Review the outcomes for the end of that financial year that are forecast in the budget.

(2)       Within 30 days after a review of the annual budget of a local government is carried out it is to be submitted to the council.

(3)       A council is to consider a review submitted to it and is to determine* whether or not to adopt the review, any parts of the review or any recommendations made in the review.

(4)       Within 30 days after a council has made a determination, a copy of the review and determination is to be provided to the Department.

             *Absolute majority required.

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

Risk assessments have been previously completed in relation to a number of ‘higher level’ financial matters, including timely and accurate financial reporting to enable the Council to make fully informed financial decisions. The completion of the monthly Financial Activity Statement report is a control that assists in addressing this risk.

Options

As an alternative to the proposed recommendation, the Council could not adopt the budget review report. If Council is intends to consider this option, officers can assist on the drafting of a suitable alternative motion for adoption before the statutory due date of 30 April 2021.

CONCLUSION

Despite uncertainty and multiple directional changes compared to planned and budgeted works and activities, as at YTD December 2020, the City’s overall financial performance is considered satisfactory.  Projections resulting from the budget review process during January and February in consultation with all manager/co-ordinator groups across all parts of the City, indicated a potential positive impact on closing net current position as at 30 June 2021, in the order of approximately $1.9M.   

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

By 30 April 2021.

 

 


Council

138

24 March 2021

12.3

Attachment a

Detailed Budget Review Schedule 2020-21

 




Council

139

24 March 2021

12.3

Attachment b

Financial Activity Statement YTD December 2020

 


Council

142

24 March 2021

12.3

Attachment c

Capital Projects & Acquisitions YTD January 2021

 




Council

143

24 March 2021

12.3

Attachment d

Amended Budget Review Table

 

 


Council                                                                                      145                                                                24 March 2021

 

15.1           COMMUNITY SPORT AND RECREATION FACILITIES FUND - SMALL GRANTS ROUND FEBRUARY 2021

STRATEGIC GOAL

1. COMMUNITY: Welcoming, friendly, healthy

STRATEGIC OBJECTIVE

1.3 A community with access to a range of cultural and art, social and recreational facilities and experiences.

SUBJECT INDEX

CSRFF February 2021 Small Round

BUSINESS UNIT

Community and Commercial

REPORTING OFFICER

Senior Sport and Recreation Project Officer - Brendan McNally

AUTHORISING OFFICER

Director, Community and Commercial Services - Naomi Searle

NATURE OF DECISION

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

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   Attachment A - Churchill Park Sportsfield Lighting Upgrade  

 

Council Decision and Officer Recommendation

C2103/056              Moved Councillor S Riccelli, seconded Councillor R Paine

That the Council endorses:

1.         The priority rankings and ratings of the applications to the Department of Local Government, Sport and Cultural Industries’ Community Sport and Recreation Facilities Fund as ranking 1 of 1, project rating A, City of Busselton, Churchill Park sportsfield lighting upgrade.

2.         An application to the Department of Local Government, Sport and Cultural Industries’ Community Sport and Recreation Facilities Fund, February 2021, for up to a $80,000 contribution towards the upgrade of sportsfield lights at Churchill Park.

CARRIED 9/0

 

DISCLOSURE OF INTEREST

Date

24 March 2021

Meeting

Ordinary Council

Name/Position

Mr Mike Archer, Chief Executive Officer

Item No./Subject

15.1 Community Sport and Recreation Facilities Fund – Small Grants Round February 2021

Type of Interest

Impartiality Interest

Nature of Interest

I am a member of the Busselton Trotting Club.

 

DISCLOSURE OF INTEREST

Date

24 March 2021

Meeting

Ordinary Council

Name/Position

Cr Paul Carter, Councillor

Item No./Subject

15.1 Community Sport and Recreation Facilities Fund – Small Grants Round February 2021

Type of Interest

Impartiality Interest

Nature of Interest

I am a member of the Southern Districts Agricultural Society.

 


 

EXECUTIVE SUMMARY

Each year, local government authorities are required to rate and prioritise the Community Sport and Recreation Facilities Fund (CSRFF) submissions received within their municipality.

 

The CSRFF 2021/22 small grant round applications for February must be submitted by local government authorities to the Department of Local Government, Sport and Cultural Industries (DLGSC) by 31 March 2021. The purpose of this report is to meet the CSRFF criteria, by outlining the submissions received for projects within the City and request that Council rates and ranks the applications prior to forwarding to DLGSC for final consideration.

 

BACKGROUND

The CSRFF program is administered by DLGSC and provides financial assistance, one third of the total estimated project cost, to well-planned sport and recreation facility projects that will maintain or increase physical activity or result in a more rational use of facilities.

 

In 2021/22, the CSRFF small grant maximum total project value is up to $300,000 (excluding GST).

 

In order to assist with the evaluation of submissions to ensure projects are viable and appropriate, DLGSC has developed an assessment criteria. Accordingly, each submission is to be assessed against those criteria and local government authorities are required to rate and prioritise local submissions using the following guide:

 

RATE

DESCRIPTION

A

Well planned and needed by the municipality

B

Well planned and needed by the applicant

C

Needed by the municipality, more planning required

D

Needed by the applicant, more planning required

E

Idea has merit, more preliminary work needed

F

Not recommended

 

Applications for the current funding round must be assessed and submitted to the South West office of DLGSC no later than 31 March 2021.

 

During April to June 2021, the applications, along with others received throughout the State, will be evaluated and ranked by relevant State Sporting Associations and the CSRFF Assessment Panel. Successful applications are announced following this assessment with funding expected to be available around July 2021.

 

There is one (1) application for this round of funding:

1.         The City of Busselton – Churchill Sports Park, sportsfield lighting upgrade.

 

OFFICER COMMENT

Owned in freehold by the City of Busselton, Churchill Park (as shown at Attachment A) plays an important role in providing outdoor sporting, community and social facilities for the region and district. The 8.5ha park is home to cricket, football (soccer), Scouts, Guides, the Agricultural Society, running, bowls, croquet and harness racing.

 

The existing sports lighting, on the main field, at Churchill Park is at the end of its useful life and does not meet sporting standards for winter sports such as football (soccer), as played by clubs including the Busselton City Soccer Club and Leeuwin Naturaliste Junior Soccer Association. The project will upgrade existing lighting towers and fittings to ensure a safe and fit-for-purpose training space can be provided for male, female and junior sporting participants within the Busselton sub-district.

 

The Sport and Recreation Facilities Strategy 2020-2030 (SRFS) identifies that undertaking upgrades to lighting enables an increase in carrying capacity of existing sport playing spaces and is a key priority for the City of Busselton district. This project will ensure the existing sports training spaces can continue to be activated, especially for winter sports based at the park.

 

Assessment Summary

As part of the CSRFF process, local governments are required to undertake an internal assessment of projects against CSRFF key principles of facility provision.

 

The following is a summary of the CSRFF criteria assessed for the Churchill Park sportsfield lighting upgrade:

 

Assessment criteria

Satisfactory

Unsatisfactory

Not relevant

Project justification

ü

 

 

Planned approach

ü

 

 

Community input

ü

 

 

Management planning

ü

 

 

Access and opportunity

ü

 

 

Design

 

 

ü

Financial viability

ü

 

 

Co-ordination

ü

 

 

Potential to increase Physical activity

ü

 

 

Sustainability

ü

 

 

 

Recommendation Summary

Ranking 1 of 1:                   City of Busselton, Churchill Park sportsfield lighting upgrade

Rating:                                  A: Well planned and needed by the municipality

CSRFF request:                  $80,000 (ex GST)

 

Statutory Environment

The officer recommendation supports the general function of a local government under the Local Government Act 1995 to provide for the good government of persons in its district.

Relevant Plans and Policies

The officer recommendation aligns to the following adopted plans and policies:

 

·        City of Busselton Community Strategic Plan 2017 (review 2019).

 

·        Sport and Recreation Facilities Strategy 2020-2030 (SRFS) – provides a long term strategy to inform, guide and underpin the planning and provision of indoor and outdoor community sporting and recreation facilities to meet existing and future needs of the district.

 

·        Social Plan 2015-2025 - a key goal of this Plan is to “create needed, quality, sustainable recreation and leisure facilities and services for our community”.


 

Financial Implications

The City of Busselton has allocated $120,000 for Churchill Park lighting asset renewal in the 2020/21 municipal budget and is considering up to $100,000 in the 2021/22 LTFP for Increasing Sports Spaces Carrying Capacity (Floodlighting) as part of the SRFS implementation. The proposed funding breakdown is as follows:

 

Contribution towards project

Amount (ex GST)

City of Busselton

$160,000

CSRFF

$80,000

Total project cost

$220,000

Stakeholder Consultation

Extensive targeted engagement was undertaken as part of the SRFS, with views and data extracted from 501 individual survey responses, 79 local sporting club/association meetings and 168 submissions on the draft SRFS.

 

This engagement identified that there is a lack of available sport space to participate, additional grass sport space should be one of the City’s main priorities, facilities are ageing and do not meet sport (and safety) guidelines, and there are limited facilities that meet current standards for unisex facilities.

 

The proposed project aligns with the outcomes of this targeted engagement.

 

Consultation has taken place with DLGSC staff at the South West office in regards to the project.

 

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.

Options

As an alternative to the proposed recommendation, the Council could decide not to support an application to the CSRFF February 2021 Round and utilise existing asset renewal funding and future LTFP funding to cover the upgrade.

CONCLUSION

The application for the CSRFF February 2021 small grant round shows sound reasoning and justification. It is recommended that the following application is assessed and ranked as a priority:

·        1 of 1, project rating A - City of Busselton Churchill Park sportsfield lighting upgrade.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

On endorsement, officers will finalise the grant application and provide the full contents of the applications to the DLGSC South West office before the closing time on 31 March 2021.

 


Council

148

24 March 2021

15.1

Attachment a

Attachment A - Churchill Park Sportsfield Lighting Upgrade

 

 


Council                                                                                      151                                                                24 March 2021

 

16.1           CONSIDERATION OF THE CONDUCT OF LOCAL GOVERNMENT ELECTION: 16 OCTOBER 2021

STRATEGIC GOAL

6. LEADERSHIP Visionary, collaborative, accountable

STRATEGIC OBJECTIVE

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

SUBJECT INDEX

Local Government Election

BUSINESS UNIT

Governance Services

REPORTING OFFICER

Governance Coordinator - Emma Heys

AUTHORISING OFFICER

Director Finance and Corporate Services - Tony Nottle

NATURE OF DECISION

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

VOTING REQUIREMENT

Absolute Majority

ATTACHMENTS

Attachment a   Letter from Electoral Commissioner (December 2020)  

 

Council Decision and Officer Recommendation

C2103/057              Moved Councillor K Hick, seconded Councillor P Carter

That the Council:

1.         Declares, in accordance with section 4.20(4) of the Local Government Act 1995, the Electoral Commissioner to be responsible for the conduct of the 2021 ordinary election together with any other elections or polls which may be required; and

2.         Decides, in accordance with section 4.61(2) of the Local Government Act 1995, that the method for conducting the 2021 ordinary election will be by postal election.

CARRIED 9/0

BY ABSOLUTE MAJORITY

 

EXECUTIVE SUMMARY

The 2021 Local Government Elections are due to be held on 16 October. In accordance with Part 4 of the Local Government Act 1995 (the Act), Council must decide on the method on which a local government election is conducted. The Council may choose between an in-person election or a postal election conducted by the Western Australian Electoral Commission (WAEC) on behalf of the local government.

 

BACKGROUND

Local government elections occur on the third Saturday in October every two years. Elected Members each serve a term of four years. The City of Busselton has four ordinary vacancies for the 2021 election.

 

The Act requires a local government to decide whether to conduct a postal or in-person election. Where a local government choose to hold a postal election, the election is to be run by the WAEC. The City of Busselton has chosen this method for the previous 20 years.

 

The Electoral Commissioner has written to the City, formally agreeing to be responsible for the conduct of the ordinary elections in 2021 on behalf of the City, in accordance with section 4.20(4) of the Act (Attachment A).


 

OFFICER COMMENT

As in previous election years, the City has received written advice from the WAEC regarding the method by which the 2021 local government election may be conducted. In accordance with section 4.20(4) of the Local Government Act 1995, the Commissioner has agreed to be responsible for the conduct of the 2021 election, as a postal ballot, at the estimated cost of $128,000 based on the following assumptions:

·        29,400 electors;

·        response rate of 38%;

·        4 (four) vacancies;

·        count to be conducted at the offices of the City of Busselton;

·        the appointment of a local Returning Officer; and

·        regular Australia Post delivery service to apply for the lodgment of the elections packages.

 

Expenses that are excluded from the cost estimate include, but may not be limited to:

·        any legal expenses other than those that are determined to be borne by the Western Australian Electoral Commission in a Court of Disputed Returns;

·        one local government staff member to work in the polling place on election day; and

·        any additional postage rate increase from Australia Post.

 

The Commissioner is responsible for conducting postal elections in Western Australia. With voting in local government elections not being compulsory, postal elections have typically resulted in a higher participation rate by eligible electors than the alternative in-person ballots, as they offer most electors greater convenience and accessibility. This is especially true for local governments with a large elector base and a high percentage of absentee owners.

 

Engaging the WAEC to conduct the local government election allows for the Chief Executive Officer and staff to remain independent of the electoral process with the WAEC able to ensure elections are conducted with impartiality.

Statutory Environment

Part 4 of the Local Government Act 1995 provides for the conduct of local government elections.

 

The Local Government (Elections) Regulations 1997 and the Local Government (Constitution) Regulations 1998 provide for the conduct of local government elections.

Relevant Plans and Policies

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

Financial Implications

The WAEC conduct postal elections on behalf of local governments on a full cost recovery basis. The City has received a cost estimate from the WAEC to conduct the postal ballot for the 2021 election of $128,000 inclusive of GST, based on a range of assumptions detailed above in the Officer Comment.  This excludes any advertising or staff resourcing costs. 

 

In 2019, the WAEC estimated the cost of an election to the City to be $117,000, however the actual cost was only $107,635, a decrease of approximately 8%. In addition, expenses were incurred by the City for local advertising and for the cost of City staff required to assist with the vote count on the evening of the election.

 


 

If the Council were to choose to conduct the local government election in-house, the financial implications to be considered include the cost of:

·        the production and printing of all election materials;

·        advertising of both statutory requirements and local promotional material; and

·        resourcing of a Returning Officer and a minimum of three staff members to man the polling booths for 10 hours on polling day and additional staff to assist in the vote count at the closing of the poll.

 

Based on research and advice given in previous election years, it is reasonable to conclude that the costs for the City to conduct an in-person election would be at least equal to, but are likely to be more than, the cost to engage the WAEC to conduct a postal election.

 

Adequate funding has been provided in the draft 2021-2022 budget. 

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

As an alternative to the proposed recommendation, the Council may choose to instead conduct an in-person election.

CONCLUSION

Of the options currently available to Council for the running of a local government election, a postal ballot conducted by the WAEC is considered the best method by which to hold the 16 October 2021 ordinary election.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

In accordance with the Act, the City will notify the WAEC of Council’s choice of how the election will be conducted at least 80 days prior to polling day.

 


Council

152

24 March 2021

16.1

Attachment a

Letter from Electoral Commissioner (December 2020)

 


 


Council                                                                                      154                                                                24 March 2021

 

18.             Motions of which Previous Notice has been Given

Nil

 

 

19.             urgent business

Nil

 

 

20.             Confidential Reports  

Nil  

 

 

21.             Closure

The Presiding Member closed the meeting at 5.40pm.

 

 

 

 

THESE MINUTES CONSISTING OF PAGES 1 TO 2 WERE CONFIRMED AS A TRUE AND CORRECT RECORD ON Wednesday, 14 April 2021.

DATE:_________________  PRESIDING MEMBER:__________________________________