Agenda of Council - Wednesday, 26 May 2021

Council 8 26 May 2021

12.1 Finance Committee - 12/5/2021 - LIST OF PAYMENTS MADE - MARCH 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 - March 2021 ⇩

This item was considered by the Finance Committee at its meeting on 12/5/2021, the recommendations from which have been included in this report.

COMMITTEE RECOMMENDATION AND OFFICER RECOMMENDATION

That the Council notes payment of voucher numbers M118689 – M118737, EF077862 – EF078629, T7548 – T7550, DD004413 – DD004446, together totalling $8,843,082.68.

EXECUTIVE SUMMARY

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

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.

Council 42 26 May 2021

12.2 Finance Committee - 12/5/2021 - FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 31 MARCH 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 - March 2021 ⇩ Attachment b Investment Report - March 2021 ⇩

This item was considered by the Finance Committee at its meeting on 12/5/2021, the recommendations from which have been included in this report.

COMMITTEE RECOMMENDATION AND OFFICER RECOMMENDATION

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

EXECUTIVE SUMMARY

Pursuant to Section 6.4 of the Local Government Act 1995 (the Act) and Regulation 34(4) of the Local Government (Financial Management) Regulations 1996 (the Regulations), a local government is to prepare, on a monthly basis, a statement of financial activity that reports on the City’s financial performance in relation to its adopted / amended budget.

This report has been compiled to fulfil the statutory reporting requirements of the Act and associated Regulations, whilst also providing the Council with an overview of the City’s financial performance on a year to date basis for the period ending 31 March 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 March 2021

The Statement of Financial Activity (FAS) for the year to date (YTD) as at 31 March 2021 shows an overall Net Current Position of $13.3M as opposed to the amended budget of $1.3M. This represents a positive variance of $12M YTD. This variance increased by $4.3M from $7.7M at the end of February.

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				*2.92%*	*2,064,268*	*1,170,630*
1. Operating Grants, Subsidies and Contributions	4,324,325	3,188,070	4,782,445	35.64%	1,136,255	830,730
2. Other Revenue	412,105	303,379	424,730	35.84%	108,726	(22,197)

Expenses from Ordinary Activities				*6.95%*	*4,146,411*	*135,068*
3. Materials & Contracts	(10,152,445)	(13,224,908)	(18,067,582)	23.23%	3,072,463	69,046
4. Other Expenditure	(1,755,413)	(2,969,736)	(5,236,779)	40.89%	1,214,323	105,797

5. Non-Operating Grants, Subsidies and Contributions	5,017,021	9,417,856	34,437,199	(46.73%)	(4,400,835)	(20,476)

Capital Revenue & (Expenditure)				*16.23%*	*5,946,024*	*1,662,481*
6. Land & Buildings	(3,037,740)	(5,648,417)	(17,454,059)	46.22%	2,610,677	1,833,118
Plant & Equipment	(878,385)	(2,401,258)	(2,510,340)	63.42%	1,522,873	46,954
Furniture & Equipment	(257,637)	(451,088)	(461,088)	42.89%	193,451	(28,217)
Infrastructure	(12,535,858)	(25,115,765)	(40,057,700)	50.09%	12,579,907	1,419,456
7. Proceeds from Sale of Assets	285,040	581,500	581,500	(50.98%)	(296,460)	66,646
8. Proceeds from New Loans	0	7,700,000	7,700,000	(100.00%)	(7,700,000)	0
9. Repayment of Capital Lease	(459,675)	(391,424)	(521,900)	(17.44%)	(68,251)	(123,029)
10. Advances to Community Groups	0	(200,000)	(200,000)	100.00%	200,000	0
11. Transfer to Restricted Assets	(5,155,488)	(41,256)	(62,750)	(12396.34%)	(5,114,232)	(1,948,610)
12. Transfer from Restricted Assets	2,295,526	200,000	2,807,074	1047.76%	2,095,526	625,305

Revenue from Ordinary Activities

In total, revenue from Ordinary Activities is $2.1M, or 2.92%, ahead of budget YTD. The only material variance items contributing to this are:

1. Operating Grants, Subsidies and Contributions

Ahead of YTD budget by $1.1M, or 35.64%, 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 $
Finance and Corporate Services		*1,369,797*	*1,331,745*	*38,052*	*2.78%*	*10,962*
10510	Governance Support Services – State Government Operating Grants	-	15,300	(15,300)	(100.00%)	(1,700)
Each year the City takes on a disability trainee. At the time of setting the budget, it is not known where this person may be placed, so the reimbursement from the state government is budgeted in this area. The trainee was actually placed at the GLC, with all associated actual wage costs and reimbursements allocated to this area.
10152	Other General Purpose Funding – Financial Assistance Grants	1,068,089	1,046,161	21,928	2.05%	-
Actual grants received are slightly higher than originally budgeted. The Grants Commission always advises the exact amounts to be received well after budget adoption.
10200	Financial Services – Reimbursements – Insurance	130,721	104,365	26,356	20.16%	7,915
The second instalment of the LGIS Contributions Assistance Package was due to be received in November, but instead a credit note received from LGIS was offset against scheme policies that were due for payment in early December, at their instruction.
10522	Occupational Health & Safety – Reimbursement – Wellness Program	5,280	18,747	(13,467)	(255.06%)	(2,083)
Due to COVID restrictions in the first half of the financial year a number of programs were either not able to proceed or were undersubscribed. With the relaxing of restrictions and returning confidence, staff participation in the various Wellness activities has increased, however it is unlikely that the full budget will be achieved by year end.
Community and Commercial Services		*237,491*	*222,689*	*14,802*	*6.23%*	*8,687*
10530	Community Services Administration – State Government Operating Grants	50,000	40,503	9,497	18.99%	(4,167)
The Rio Tinto COVID Relief & Recovery Grant was invoiced in total in August, however the budget was spread evenly over 12 months.
10540	Recreation Administration – State Government Operating Grants	1,736	15,003	(13,267)	(764.05%)	(1,667)
There have been delays in receiving grant deeds from the relevant State Government department. The applications that have been approved are expected to derive approximately $30K by the end of May 2021, which is in excess of the total amount budgeted for the year of $20K.

10530	Community Services Administration – Parenting Leave Reimbursements	14,655	-	14,655	100.00%	13,570
Parenting leave reimbursement was not planned at the time of the development of the 20/21 budget.
10630	Economic and Business Development Administration – Parenting Leave Reimbursements	9,059	-	9,059	100.00%	-
Parenting leave reimbursement was not planned at the time of the development of the 20/21 budget.
Planning and Development Services		*842,146*	*928,192*	*(86,046)*	*(10.22%)*	*(46,894)*
10820	Strategic Planning – State Government Grants	-	37,500	(37,500)	(100.00%)	-
The variation from Strategic Planning budget (Grant $37,500) is due to the total grant ($75,000) being acquitted in two instalments: a 50% payment was received some time ago on achievement of certain project milestones to that stage in the preparation of the ‘Coastal Adaptation Strategy’ or CHRMAP, ‘Coastal Hazard Risk Management and Adaptation Plan’. The final 50% is due to be paid to the City upon Government endorsement of the final CHRMAP. Preparation of this complicated and comprehensive document has been set back several times over the past 2 years due to project requirements concerning financial modelling and Government Working Group reviews et al. As such, the City has received approval to extend the anticipated completion date for the project (this has occurred several times) until September 2021 (and it may require even longer). At the moment, it is expected to report on the draft CHRMAP to OCM 24 February, then, if approved, put out for public information/comment for 2-3 months. Then will need to be finalised etc. The $37,500 final grant payment will therefore not be paid until FY 21/22.
10830	Environmental Management Administration – State Government Grants	18,780	-	18,780	100.00%	-
Grant received in two lots in September and December, however it was budgeted to be received in June.
10925	Preventative Services – CLAG – State Government Grants	32,038	44,370	(12,332)	(38.49%)	-
The Department of Health contribution to the mosquito program was less than expected.
10940	Fire Prevention DFES – Contributions	21,203	59,916	(38,713)	(182.58%)	-
The $21K received relates to the last quarter of the 19/20 year. The half yearly reconciliation (for quarters 1 & 2 of the 20/21 year), of the CESM role with DFES remains outstanding and is in progress.
Engineering and Works Services		*1,873,891*	*705,444*	*1,168,447*	*62.35%*	*823,770*
11160	Busselton Jetty – Insurance Recovered	13,770	-	13,770	100.00%	-
Payout on a claim for storm damage to Railway House.
11162	Busselton Jetty - Underwater Observatory – Reimbursement of Utilities Charges	10,472	-	10,472	100.00%	3,600
The City recoups both electricity and sewer service charges from Busselton Jetty Inc. Due to an administrative oversight this item has not been budgeted, however there is a nil impact on the municipal net current position due to this income being put into the Jetty reserve. This offsets the costs which are also put into the reserve.

11300	Sanitation Waste Services Administration – Parenting Leave Reimbursements	10,856	-	10,856	100.00%	10,856
Parenting leave reimbursement was not planned at the time of the development of the 20/21 budget.
11301	Regional Waste Management Administration – Reimbursements	47,958	16,497	31,461	65.60%	(1,833)
The contributions to the 2020/21 Southwest Regional Waste Group Project were received from 10 participating local governments in November, totalling $48K. Only $22K was budgeted for the year, and this was spread over 12 months.
11501	Operations Services Works – Insurance Reimbursements	200,613	45,900	154,713	77.12%	24,679
Workers compensation claims totalling $201K have been received YTD. This is by nature very difficult to predict. $61K was budgeted for the year, spread evenly over 12 months.
B1401 & B9610	Old Butter Factory – Insurance Reimbursements	149,415	-	149,415	100.00%	-
Conservation and fire damage works now completed. Insurance claim has now been approved and paid. Not budgeted as additional works were required for structural and fire compliance that had not been scoped at commencement of the works. Not unusual for conservation projects of this nature. Net impact after insurance claims is estimated at approximately ($30K).
M9999	Road Maintenance Bal Of Budget – Insurance Reimbursements	778,013	-	778,013	100.00%	778,013
Storm damage claims from the storm events in May 2020.

2. Other Revenue

Ahead of YTD budget by $109K, or 35.84%, 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		*42,022*	*4,815*	*37,207*	*772.73%*	*10,204*
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	9,346	-	9,346	100.00%	110
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.
10630	Economic and Business Development Administration – LSL Contributions from other LG’s	9,738	-	9,738	100.00%	9,738
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.

Planning and Development Services		*179,397*	*105,561*	*73,836*	*69.95%*	*(3,409)*
10925	Preventative Services – CLAG – Sundry Income	77,316	3,060	74,256	2426.68%	(321)
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	28,146	45,000	(16,854)	(37.45%)	(3,416)
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		*161,968*	*165,900*	*(3,932)*	*(2.37%)*	*(28,165)*
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	18,747	(16,278)	(86.83%)	(2,083)
EWS (Dunsborough depot crew and admin staff) check the meter on a quarterly basis and then inform Finance what needs to be invoiced to Dunsborough & Districts Water Cartage. Due to administrative staff being on long service leave over January and February, this process was overlooked. Billing should largely catch up to budget for YTD April figures.
G0030	Busselton Transfer Station – Sale of Scrap Materials	51,507	59,955	(8,448)	(14.09%)	(29,990)
There was an initial spike in sales compared to the timing of the budget, and better than predicted prices received for scrap metal. However, as predicted, this has slowed somewhat as the financial year has progressed.

Expenses from Ordinary Activities

Expenditure from ordinary activities is $4.1M, or 6.95%, less than expected when compared to the budget YTD as at March. The following individual expense line items on the face of the financial statement have YTD variances that meet the material reporting thresholds:

3. Materials and Contracts

Better than budget by $3.1M, or 23.23%. 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		*1,600,471*	*1,773,220*	*172,749*	*9.7%*	*108,177*
10151	Rates Administration	175,435	250,553	75,118	30.0%	26,272
The variance is predominantly due to the under spend 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 communications with the Minister regarding rates reviews that have changed the scope of the project. Unspent funds will remain carried forward in the reserve to fund the revised project.

10200	Financial Services	37,124	61,303	24,179	39.4%	5,593
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	987,126	998,177	11,051	1.1%	76,478
· Software licences – Although no licence costs were incurred in March, creating a large positive swing in the variance, the City’s licences still 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 the City has 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 – It was planned to use a new image provider at a reduced cost, unfortunately they could not provide what was agreed upon and the City continued to use Landgate. This will be adjusted for next budget.
10360	Customer Services	18,428	35,524	17,096	48.1%	1,712
· Photocopying – The Finance team going paperless has had a significant impact on the City’s 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. The City still orders 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	89,321	46,035	(43,286)	(94.0%)	4,558
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	30,560	47,017	16,457	35.0%	(6,326)
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	66,780	106,209	39,429	37.1%	(5,456)
Lower than expected maintenance costs to the end of the reporting period. Less reactive maintenance for FY to date.
Community and Commercial Services		*980,408*	*1,698,103*	*717,696*	*42.3%*	*(31,854)*
10380	Busselton Library	44,126	90,261	46,135	51.1%	5,460
1. Non-capital Furniture & Office Equipment - The purchase of new furniture and office equipment (under the capitalisation threshold) has been delayed due to the new renovations and subsequent requirement for furniture and fit-out of the new children’s area. Purchase Order has been raised which will fully expend $17,574 remaining in this line. 2. Contractors (Inc Contract staff) - $8,000 underspend to offset $8,000 grant income not received (Be Connected Grant). 3. Entity Specific Consumables – The coffee machine has been disposed of, which means that there will be no expenditure, and no offset income.

10381	Dunsborough Library	16,882	26,972	10,090	37.4%	0
· Contractors – Carpet cleaning has been rescheduled to occur in March/April 2021. · Other Computer costs - $1,800 networking costs no longer required. · Photocopying – see Busselton explanation. · Library Resources – see Busselton explanation.
10540	Recreation Administration	9,140	37,592	28,452	75.7%	3,233
The City’s application to the State Government for the 2021 & 2022 Every Club grants was successful. Grant deeds have been received and executed. It is envisaged that $15K of the $30K that has been invoiced will need to be rolled into next FY to fund the new Community and Recreation service trainee and the remaining $15K will be expended on delivering the program through workshops.
10541	Recreation Planning	1,850	116,416	114,566	98.4%	26,264
Timing of expenditure was awaiting the outcomes of external grant applications. As of 28 February, grant deeds have now been finalised; the scope has been agreed with the preferred consultant. It is expected that a total of $70k will be finalised prior to EOFY.
10590	Naturaliste Community Centre	37,859	75,480	37,621	49.8%	3,209
The Naturaliste Community Centre was closed due to COVID-19 and, upon reopening, was subject to phased restrictions which limited the attendance numbers and therefore expenditure associated with City programs and services throughout the first two quarters. To date, the City is 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 the City is likely to see increased expenditure over the next few months.
10591	Geographe Leisure Centre	223,310	282,518	59,208	21.0%	(11,277)
This is the same as the factors listed above for the NCC. Expenditure will increase over the next couple of months as works that have been on hold due to material shortage and contractor unavailability to commence.
10600	Busselton Jetty Tourist Park	350,732	435,762	85,030	19.5%	(33,324)
The variance can be attributed to two outstanding monthly management fee invoices ($41,125 – runs one month in arrears), due to presentation and payment of the invoice. Other expenditure that has not occurred falling within Materials & Contracts are related to non-scheduled maintenance, garden maintenance, purchase of materials, and savings in cleaning materials and disposal of waste fees.
10630	Economic and Business Development Administration	18,100	70,118	52,018	74.2%	(1,858)
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, the City budgets for advertising and marketing, but need to wait for relevant opportunities to arise throughout the year that may not necessarily align with budget timing.
10980	Other Law, Order & Public Safety	-	149,792	149,792	100.0%	-
Payment to Surf Lifesaving WA delayed. As at 31 March, awaiting signed Deed of Service. Expected expenditure is now due in Q4.

11151	Airport Operations	152,284	250,112	97,828	39.1%	(37,368)
The budget variance YTD includes the key allocations of: 1. security screening of $45K not spent; 2. contractors - $40K for tree clearing not completed/expended; 3. the remainder of the variance relates to commitments for: a) car park design, line marking, repairs and maintenance of approximately $24K; b) runway line marking and turn pad design of approximately $4K; c) apron lighting repairs of approximately $3K; and 4. general grounds maintenance and improvements of approximately $12K.
B1361	YCAB (Youth Precinct Foreshore)	24,415	42,651	18,236	42.8%	2,646
Operating grants forecast were not available as planned and therefore associated expenditure has not occurred. Alternative funding was sourced to run a program in Dunsborough which commenced in February and March. Full invoicing for these activities has not as yet been received, and is also not expected to come in as high as what was originally forecast based on the grant funding.
Planning and Development Services		*814,054*	*1,578,218*	*764,164*	*48.4%*	*162,688*
10810	Statutory Planning	15,469	25,533	10,064	39.4%	37
Not possible to predict when consultancy services will be required in advance. In this case, funds have been committed (heritage and traffic advice) but invoices not received.
10820	Strategic Planning	153,648	181,818	28,170	15.5%	(3,753)
Estimated revenues (re-zonings, structure plans) and anticipated consultant contracts (for specialised works seen as likely to be needed for scheduled City projects) are often quite difficult to predict as they are subject to third-party intentions and initiatives, or competing demands and task allocation/prioritisation at the City.
10830	Environmental Management Administration	246,225	450,415	204,190	45.3%	90,445
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	839	30,425	29,586	97.2%	4,310
There is an error in the timing of the YTD budget. The full year for contractors is only $5K, however YTD shows $20K, as a budget credit of $15K was processed in June. The YTD variance for this whole area is actually $14,586. The reasons for this $14K underspend include the contractor allocation of $5K to implement audit outcomes being done in house, plus very minimal pre-summer assessments of sound level meters, revealing little to no faults requiring repair, due to 2020 COVID event cancellations.
10922	Preventative Services – Mosquitoes	18,774	35,090	16,316	46.5%	3,173
Spring and Autumn burning mitigation programs now complete with all expenses currently being reconciled. Mechanical mitigation program of approximately $80,000 commence on Monday 3^rd May with invoicing for works completed expected to be received in the month of May. All funds expected to be spent by end of FY.
10925	Preventative Services – CLAG	119,098	57,747	(61,351)	(106.2%)	83
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	39,299	407,916	368,617	90.4%	43,041
Spring and Autumn burning mitigation programs now complete with all expenses currently being reconciled. Mechanical mitigation program of approximately $80,000 commence on Monday 3^rd May with invoicing for works completed expected to be received in the month of May. All funds expected to be spent by end of FY.
10942	Bushfire Risk Management Planning – DFES	155	10,422	10,267	98.5%	1,158
To be fully reconciled prior to the EOFY.
11170	Meelup Regional Park	56,763	148,523	91,760	61.8%	27,997
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 April 2021, due to initial request for services not attracting a suitable service provider.
B1010-B1028	Bushfire Brigades – Various	89,151	114,426	25,275	22.1%	(9,447)
Emergency operations dependant. YTD actuals vs budget will vary according to emergency operational requirements, and are inherently difficult to predict.
Engineering and Works Services		*6,754,783*	*8,169,721*	*1,414,939*	*17.3%*	*(169,286)*
12600	Street & Drain Cleaning	182,514	328,302	145,788	44.4%	33,091
YTD expenditure for these services are tracking at a lower rate than in previous financial years. 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 also $243K in committed costs associated with future planned and scheduled maintenance of this type. This budget will be fully expended by 30 June.
12620 & 12621	Rural & Urban Tree Pruning	139,487	283,500	144,013	50.8%	(9,102)
Expenditure for pruning and the removal of dead trees and debris was being withheld to the value of $247K to help offset storm damage clean-up costs incurred in relation to the May 2020 storm. A total of $403K in Contractor based clean-up costs were incurred post 30 June with these costs coded against the individual roads impacted. In February, it was confirmed that the City had secured storm claim reimbursement revenue, thus this budget is now available to be utilised. Contractor availability will now determine if the backlog of works can be completed by 30 June. It is anticipated that all of the annual budget will be utilised.
Various	Bridge Maintenance	19,710	135,909	116,199	85.5%	13,905
Expenditure on Bridge Maintenance activities was also withheld to the value of $105K to help offset May 2020 storm damage related costs. Now that it has been confirmed that the City will secure reimbursement for storm damage, this budget has been reinstated. Contractor availability will now determine if works temporarily put on hold can be completed by 30 June. There are $95K in commitments that represent planned works or works that are currently in the process of being completed.
Various	Building Maintenance	1,015,363	1,065,807	50,444	4.7%	(17,413)
The year to date underspend variance associated with Building Maintenance decreased by $17K in March from February. Scheduled maintenance activities on buildings primarily occur in the second half of the financial year outside of peak periods to minimise the impact to users of those facilities. Hence the year to date variance to budget will continue to trend lower to 30 June.

Various	Other Infrastructure Maintenance	902,648	1,305,818	403,170	30.9%	(52,428)
This category encompasses the consolidation of 84 separate and unique services delivered broadly across the City. It 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; cycleways and footpaths, etc. The $403K expenditure variances for YTD March is mostly attributable to timing with the budget having been evenly spread across the financial year. There is also $453K in committed costs that represents works currently being undertaken or works yet to be invoiced. Material & Contractor costs associated with the majority of these areas is forecast to increase closer to the end of the financial year.
Various	Waste Services	1,490,135	2,001,156	511,021	25.5%	(34)
The YTD under expenditure to budget for Waste Services Consolidated is attributable to many factors including the following: · $63K favourable variance associated with the processing of the Green Waste stockpiles. This will occur prior to 30 June based on contractor availability. A Request for Quotation (RFQ) has been issued. · $49K favourable variance associated with the postponement of the FOGO trail. These funds will be retained in the Waste Reserve. · $73K favourable variance associated with contamination site costs where at the time of budget preparation annual costs were unknown; investigations are ongoing. · Approximately $80K in relation to the timing and processing of the monthly recycle (yellow top) bin invoices i.e. the March service costs will be processed into April. · Approximately $20K in relation to the timing and processing of the monthly Cleanaway General Waste disposal invoice. The March service costs will be processed into April.
Various	Roads Maintenance	821,734	292,546	(529,188)	(180.9%)	(71,222)
The higher than normal costs are largely associated with storm damage clean-up costs stemming from the May 2020 storm events, where there has been $403K in extraordinary Material & Contractor costs incurred against Road Maintenance. In February, the City was notified that it will be in receipt of reimbursements that effectively cover and offset against this overspend. The Road Maintenance budget is being carefully managed exclusive of storm-related costs that have been reimbursed.
Various	Reserve Maintenance	1,078,373	1,376,410	298,038	21.7%	(33,311)
Materials & Contracts costs associated with Public Open Spaces are historically lower in the cooler first months of the financial year – July through to September - with expenditure patterns starting to increase through October to December then spiking through January to April before beginning to moderate lower again after the Easter public holidays. Actual costs incurred in March totalled $212K against a monthly budget of $165K reducing the YTD variance by net $47k. Included in the YTD variance is a one-off non-cash stock adjustment made against Materials & Contracts reducing expenditure against budget by $106K. Of note, there is $292K of committed costs representing planned expenditure to occur in future periods – this will significantly reduce the underspend variance once invoices from suppliers are receipted.
5280	Transport - Fleet Management	1,088,997	1,355,901	266,904	19.7%	(35,122)
Fuel and Oil was underspent by $168k YTD accounting for 68% of the Fleet YTD variance. The March invoice estimated to be in the order $85k will be processed into April and will cancel out 50% of the favourable Fuel and Oil variance; this said, an end of year surplus is anticipated but will be less than was anticipated in the mid-year budget review as the fuel price has been on the rise. Fuel consumption across the City is now at its highest level as many large Civil works projects are now underway. Tyre purchases are overspent by $4k YTD however replacement parts/tooling/contractor costs are underspent YTD. The budget for these items is spread evenly across the year, however spending is generally more cyclical in nature peaking in the busier spring/summer/autumn months of the year.

4. Other Expenditure

$1.2M, or 40.9%, 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*		*47,490*	*84,723*	*37,233*	*43.9%*	*9,870*
10001	Office of the CEO	46,677	84,723	38,046	44.9%	10,426
The underspend is actually $28K and relates to donations contributions and subsidies budget ($10K), CapeROC budget ($13K) and the CEO Discretionary Budget ($5K). An end of month system roll-over issue created a $10K underspend error that was rectified in April.
*Finance and Corporate Services*		*573,991*	*683,533*	*109,542*	*16.0%*	*(1,347)*
10000	Members of Council	350,559	410,838	60,279	14.7%	953
Timing variances exist in relation to the payment of elected member allowances and reimbursements. The bulk of this ($30K) is related to timing variances in payment of sitting fees. The remainder is related to underspends in the elected members training budget ($14K), no expenditure against the Council holding account ($8K), and timing variances for expense reimbursements which are difficult to predict when budgeting.
10700	Public Relations	57,952	86,668	28,716	33.1%	(2,247)
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*		*862,055*	*1,878,766*	*1,016,711*	*54.1%*	*116,709*
10530	Events & Cultural Services Administration (formerly Community Services Administration)	427,984	577,557	149,573	25.9%	40,794
Invoices from Royal Lifesaving have not yet been received for services rendered YTD.
10532	BPACC Operations	11,668	40,000	28,332	70.8%	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.
10548	Half Iron Man	-	55,000	55,000	100.0%	55,000
The event was originally budgeted for March, however it will be held in early May at which time the sponsorship and promotional budget will be spent.
10550	Forrest Rally	-	12,500	12,500	100.0%	-
Forrest Rally organisers have advised that the event will not be proceeding from 2020/2021 onwards, therefore these funds will not be expended.
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.

10591	Geographe Leisure Centre	21,898	31,621	9,723	30.7%	(530)
The underspend variance is a combination of delayed advertising promotions for membership sales due to COVID and the delay in invoices being processed against purchase orders raised late last year for adverts. As of March, there was $4K committed, pending invoices, with the remaining budget to be utilised towards the EOFY.
10625	Art Geo Administration	7,608	20,448	12,840	62.8%	(2,543)
Underspend is offset by additional wages due to in house production of marketing, promotional and interpretation work.
10630	Economic and Business Development Administration	3,440	22,738	19,298	84.9%	703
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, the City budgets 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-19 is unlikely to be spent by the end of the financial year.
10634	Business Support Program	61,022	80,172	19,150	23.9%	8,908
There are a number of grants that are being finalised by applicants. Once these have been completed, then the City 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 variance at year end.
11151	Airport Operations	76	420,637	420,561	100.0%	6,552
Relates to marketing activities for RPT services which have not commenced due to COVID.
*Planning and Development Services*		*137,670*	*140,580*	*2,910*	*2.1%*	*9,830*
10805	Planning Administration	29,148	45,000	15,852	35.2%	5,000
This variance relates to the façade refurbishment program which is not likely to have any additional projects / work costed to it this financial year as the City has not run the program as per normal because of unusually high workloads caused by the building stimulus.
10931	Protective Burning & Firebreaks - Reserves	1,550	13,185	11,635	88.2%	1,465
Due to the limited seasonal burning opportunities, the budget for catering for the crews has not been spent as expected YTD.
10942	Bushfire Risk Management Planning – DFES	23,466	-	(23,466)	(100.0%)	-
This represents repayment of unspent 19/20 BRMP grant funds.
*Engineering and Works Services*		*134,207*	*182,134*	*47,927*	*26.3%*	*(29,265)*
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. Final inspection of the toilet facilities was expected late March, after which the invoice should be forthcoming.

G0042	BTS External Restoration Works	51,153	37,503	(13,650)	(36.4%)	(29,290)
There was an unforeseen cost increase in groundwater monitoring due to a laboratory error by our third party contractor. The round of testing conducted in November included the sampling of over 50 groundwater bores, many of which reported “anomalous results”. The contractor concluded that the lab had made errors in mis-labelling samples, which required re-sampling. Although the lab did not charge us for additional testing due to their error, the City incurred extra costs when it had to re-engage the contractor to re-test several dozen bores in January. The City’s legal department is investigating whether compensation from the contractor can be pursued.

5. Non-Operating Grants, Subsidies & Contributions

The negative variance of $4.4M 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*		*46,678*	*56,000*	*(9,322)*	*(16.6%)*	-
R0288	Locke Estate – Leaseholder Contributions	46,678	56,000	(9,322)	(16.6%)	-
*Community and Commercial Services*		-	*38,851*	*(38,851)*	(100.0%)	-
C6025	Installation of Bird Netting – State Capital Grant	-	38,851	(38,851)	(100.0%)	-
*Planning and Development Services*		*10,592*	-	*10,592*	*100.0%*	-
10980	Other Law, Order & Public Safety – Donated Assets	8,231	-	8,231	100.0%	8,231
B1025	Yallingup Coastal Bushfire Brigade – Donated Assets	10,592	-	10,592	100.0%	-
C3223	Dunsborough Non-Potable Water Network – Federal Capital Grant	483,655	-	483,655	100.0%	483,655
*Engineering and Works Services*		*4,467,864*	*9,323,005*	*(4,855,141)*	*(52.1%)*	*(512,362)*
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%)	-
B9999	Donated Buildings (Micro-Brewery Public Toilets)	110,000	-	110,000	100.0%	110,000
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%	-
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	-	240,003	(240,003)	(100.0%)	(26,667)
S0005	Ludlow Hithergreen Road - Second Coat Seal – Main Roads Capital Grant	180,000	337,500	(157,500)	(46.7%)	(37,500)
S0048	Bussell Highway – Developer Cont. Utilised	200,000	375,003	(175,003)	(46.7%)	(41,667)
S0070	Peel & Queen Street Roundabout Service Relocation – Developer Cont. Utilised	120,000	800,000	(680,000)	(85.0%)	(250,000)
S0073	Gale Road Rural Reconstruction – Federal Capital Grant	515,811	1,029,366	(513,555)	(49.9%)	(114,374)
S0074	Causeway Road Duplication – Developer Cont. Utilised	800,000	300,000	500,000	166.7%	-
S0075	Local Road and Community Infrastructure Program – Federal Capital Grant	688,143	765,951	(77,808)	(10.2%)	(33,260)
S0076	Kaloorup Road (Stage 1) – Main Roads Direct Grant	106,800	-	106,800	100.0%	-
T0020	Capel Tutunup Road – RTR Capital Grant	-	1,070,046	(1,070,046)	(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 March 2021, there is an underspend variance of 50.3%, or $16.9M, in total capital expenditure, with YTD actual at $16.7M against the YTD amended budget of $33.6M. 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*		-	*75,000*	*75,000*	*100.0%*	*25,000*
10610	Property Services Administration	-	75,000	75,000	100.0%	25,000
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*		*3,037,740*	*5,573,417*	*2,535,677*	*45.5%*	*1,808,118*
B9516	Busselton Library Upgrade	588,304	603,000	14,696	2.4%	(3,729)
Library works completed. Balance of funds to be directed to fit-out items.
B9300/1/2	Aged Housing Capital Improvements	51,489	156,400	104,911	67.1%	11,600
Budgeted works were proposed to separate power and drainage servicing Winderlup Court and Winderlup Villas. Whilst the power requirements are not triggered until the new conditional land title lots are created, the intention was to progress with this anyway. The procurement process has elicited one quotation only which, even if acceptable is unlikely to generate an invoice payable in the current financial year. As such the budgeted funds will be carried over in reserve to be utilised once appropriate contractual arrangements can be made.
B9407	Busselton Senior Citizens	625,483	738,128	112,645	15.3%	-
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. The tender to perform these works has now been awarded and are expected to be completed by the end of the financial year.
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	1,344,284	3,276,087	1,931,803	59.0%	1,805,431
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	110,167	368,739	258,572	70.1%	(8,612)
Carried over works from the prior year. Works have now been completed with reconciliation of the final progress claims expected to be completed in May. Payment should follow shortly thereafter and is expected to fully utilise this budget.

B9606		King Street Toilets	47,781	34,524		(13,257)	(38.4%)	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 $13K YTD variance is attributable to timing and will clear closer to 30 June.
B9607	General Buildings Asset Renewal Allocation (Various Buildings)		100,598	112,500	11,902		10.6%	(8,114)
This budget was assigned for various Capital works as identified as per the City’s Building Asset Management Plan. $20.6k was outlaid in the month of March reducing the YTD budget by a further $8k. There is a further $30k in committed costs representing either works completed but yet to be invoices or works that have been scheduled but are yet to be completed. All of this budget is anticipated to be utilised come June 30.
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		131,549	-	(131,549)		(100.0%)	-
Conservation and fire damage works now completed. Insurance claim has now been approved, with the final position estimated to be ($30K), with savings being identified in other areas to account for this variance.
B9612	Churchill Park Renew Sports Lights		81	140,000	139,919		99.9%	(81)
A review of consultants work to date has been undertaken and Council has endorsed a grant application to the state government for this site. If the application is accepted (response expected in June), budgeted expenditure will be carried forward into the 21/522 budget year. If not, much of this budget will be spent by the end of 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		-	32,103	32,103		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*			*878,385*	*2,401,258*	*1,522,873*		*63.4%*	*46,954*
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. Suitable specifications have now been developed and quotes are being sought, however the new equipment is not expected to be delivered until August 2021. As such, these budgeted funds will remain in reserve and be relisted to be drawn in the 21/22 budget.
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.

11156	Airport Development Operations	172,865	212,328	39,463	18.6%		23,592
The YTD variance relates to the baggage handling system, the under spend of $39K will be taken up by commitments of $42K for works which have now been completed but will not yet invoiced.
11162	Busselton Jetty - Underwater Observatory	17,523	-	(17,523)	(100.0%)		-
In February, there was $17.5K in unplanned expenditure for an Uninterrupted Power Supply (UPS) for the Underwater Observatory (UWO) lift. This will be funded from the Jetty Reserve.
11401	Transport – Workshop	10,410	30,000	19,590	65.3%		-
The delivery of hardware for upgrades to the repeater at the communications tower are to be delivered in April. Installation of these will be dependent upon receiving Telstra approvals.
11402	Plant Purchases (P10)	321,201	1,420,000	1,098,799	77.4%		-
Underspend variances to budget YTD are due to: 1. The new generators at DWF pond and cell that are expected to be ordered in April, with delivery in May; 2. The waste manager’s new replacement vehicle yet to be ordered/delivered; 3. A waste truck side loader that has been ordered, but delivery/payment is not expected until July (this underspend saving will be a carry-forward purchase from the Plant Reserve in the 21/22 budget); 4. Delays in receiving the invoice for the new wheel loader; 5. The waste compactor semi-trailer purchase has been deferred indefinitely pending development of the new waste plan.
11403	Plant Purchases (P11)	46,995	197,500	150,505	76.2%		2,500
One vehicle ordered with delivery expected in April and one light truck ordered in December, delivery now expected in June.
11404	Plant Purchases (P12)	-	114,000	114,000	100.0%		-
One light truck ordered with delivery expected in July; concrete scarifier ordered with delivery expected in April.
11407	P&E - P&G Smart Technologies	-	74,997	74,997		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 now expected in April. 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’s on-going impacts overseas.
*Furniture & Office Equipment*		*257,637*	*451,088*	*193,451*		*42.9%*	*(28,217)*
10250	Information & Communication Technology Services	211,802	407,088	195,286		48.0%	(20,142)
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. It is expected that the projects will make up time and currently do not plan for any carry overs.

*Infrastructure By Class*		*12,535,858*	*25,115,765*	*12,579,907*	*50.1%*	*1,419,456*
Various	Roads	7,537,368	12,254,997	4,717,629	38.5%	331,865
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. Major civil road construction works are now underway in numerous locations across the City. The large rural Gale Road project ($1.437m) has commenced (expected completion April), but is estimated to come in under budget by approx. $300K due to competitive contractor pricing, contributing to the current variance. There will be a material underspend associated with the Peel & Queen Street Roundabout project (S0070) valued at $1.2M. Service relocation works are scheduled to comment after Easter on the Peel Terrace roundabout with stage 2 works at the Albert Street intersection to be completed in the following financial year.
Various	Bridges	-	1,082,997	1,082,997	100.0%	120,333
Although Bridge renewal works will be done on both the Bussell Highway and Yallingup Beach Road bridges this financial year, it is unlikely any expenditure will be recorded due to the timing on receipt of invoices received from Main Roads. Main Roads carry out these works on behalf of the City. Works on the Kaloorup, Boallia Road and Tuart Drive Bridges are now scheduled to commence in the 2022 Financial year. To this end an under expended variance to budget totalling $6.4M is anticipated come 30 June. All 5 bridge projects will represent carry overs.
Various	Car Parks	954,545	1,425,927	471,382	33.1%	155,160
Car Park projects are generally progressing well although there is a $471K under expended variance to budget YTD. Half of the YTD variance is attributable solely to the Car Parking associated with the Barnard East Development. This project is currently out to Tender. A further $131K of the variance is associated with the Vasse Oval Gravel Car Parking area yet to be constructed out at Vasse Dawson (expected completion April).
Various	Footpaths & Cycleways	240,827	1,109,365	868,538	78.3%	74,121
The YTD variance associated with Footpath & Cycleway projects grew by a further $74k to the end of March. This is primarily attributable to the Buayanyup Drain Shared Path project that is yet to commence which represents 55%, or $475K, of the YTD variance. An extension to the 50% Regional Bike Network grant associated with this project has been secured if the project is to span into the 2022 financial year. There have been added complexities associated with this project. The Bussell Highway Footpath Sections and the Dunsborough Centennial Park Projects contribute a further $217k combined towards the YTD variance respectively where the budget for the aforementioned projects has been earmarked and reassigned to cover additional Queen Street Paving works that are categorised separately under Townscape projects.
Various	Parks, Gardens & Reserves	3,600,339	8,441,045	4,840,706	57.3%	754,094
64%, or $3.109M, of the YTD variance in this category is attributable to only the four projects listed below: 1. Dunsborough Lakes Sporting Precinct (Stage 1); Civil works to begin soon but much of the budget to be carried over and added to Stage 2. 2. Craig Street Groyne and Sea Wall; works currently under way with progress claims anticipated in April. 3. Site Rehabilitation – Busselton; works postponed in lieu of the site settling, survey and levelling. 4. Mitchell Park Upgrade; works always planned to commence after Easter holiday period. Further to the above, in excess of $1M of the YTD variance is attributable to the numerous Public Open Space upgrade projects using Cash in Lieu of Public Open Space contributions spread throughout the City; these works have gone out to market for formal pricing but will not be done until the new year and thus will represent carry overs.
Various	Drainage	8,220	75,569	67,349	89.1%	(1,045)
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	194,559	725,865	531,306	73.2%	(15,071)
Bird netting has now been completed and invoices approved for payment and the car park works have been completed but not paid at the time of this report. 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 $296K 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 planned drawdown on the construction loan for the BPACC. 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 advances to community groups which have not occurred at this point in time.

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 YTD will rectify by the end of June.

10. Advances to Community Groups

No applications have been approved 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 $5.1M more than amended budget.

At the time of budgeting it is not possible to predict what grants will be received in what timeframe, nor when they will be spent and hence potentially transferred to restricted assets beforehand. The following grants, totaling $2.3M, have been received and transferred to restricted assets for which there is no budgeted transfer and full acquittal completed:

1. 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 and another $200K received in March. Budget projected allocation was in June as was the anticipated expenditure, hence no necessity to budget for a transfer to restricted assets;

2. $841K of the $1.6M grant for the Dunsborough Lakes Sporting Fields Development was received in March;

3. $855K 3^rd instalment of the annual Roads to Recovery Grant allocation that has not been fully acquitted by YTD March.

Developer contributions, deposits and bonds are inherently hard to predict and budget for. An annual amount of $63K spread evenly over 12 months was budgeted, however over $2.8M has been received YTD, the bulk of which are for road works bonds ($2.3M).

12. Transfer from Restricted Assets

YTD there has been $2.3M transferred from restricted assets into the Municipal Account. This was mainly attributable to refunds of road work bonds of $1.4M, refund of hall deposits of $26K, Busselton Jetty Tourist Park deposit refunds of $344K, $484K spent from the first $500K tranche of the Dunsborough Non-Potable Water Network grant, and other sundry refunds of $46K.

The variance to YTD budget for these items is due to majority of the transfers being forecast to occur in June.

Investment Report

As at 31 March 2021, the value of the City’s invested funds totalled $82.29M up from $81.29M as at 28 February 2021.

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) increased by $1.0M to $7.0M.

During the month of March, six term deposits totalling the amount of $20.0M matured. Existing deposits were renewed for a further 121 days at 0.36% on average.

The official cash rate remains steady for the month of March 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 March 2021 are provided below to ensure there is appropriate oversight and awareness.

Date		Payee	Description	$ Amount
4/03/2021	SHELTER BREWING CO - HOSPITALITY		SOD TURNING – HILTON HOTEL DEVELOPMENT		247.50
6/03/2021	QANTAS AIRFARES PERTH - GERALDTON		ATTENDANCE AT TOURISM COUNCIL WA REGIONAL TOURISM CONFERENCE 3-5 MAY 2021 -GRANT HENLEY		414.44
16/03/2021	AUST INSTITUTE OF COMPANY DIRECTORS		*COMPANY DIRECTOR COURSE – 31 MAY 2021 - NAOMI SEARLE		7,823.00
17/03/2021	VIRGIN AIRFARES – BROOME - PERTH		BME - PER - 21 JUNE 2021 – MIKE ARCHER & KYM SULLIVAN		844.56
18/03/2021	VIRGIN AIRFARE PERTH - BROOME		ATTENDANCE AT RCAWA MEETING 19 JUNE 2021 - GRANT HENLEY		422.28
19/03/2021	HERTZ CAR HIRE BROOME		CAR HIRE - 17-20 JUNE 2021 - RCAWA MEETING – MIKE ARCHER & GRANT HENLEY		499.28
			TOTAL		$9,751.78

*Funding from CEO’s professional development allowance.

Statutory Environment

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

Relevant Plans and Policies

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

Financial Implications

Any financial implications are detailed within the context of this report.

Stakeholder Consultation

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

Risk Assessment

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 March 2021, the City’s net current position stands at $13.3M. The City’s financial performance is considered satisfactory, and cash reserves remain strong.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.

Council 64 26 May 2021

12.3 Finance Committee - 12/5/2021 - APPLICATION FOR RATE EXEMPTION - WARATAH SUPPORT CENTRE (SOUTH WEST) INC

STRATEGIC GOAL	6. LEADERSHIP Visionary, collaborative, accountable
STRATEGIC OBJECTIVE	6.1 Governance systems, process and practices are responsible, ethical and transparent.
SUBJECT INDEX	Exemptions & Appeals (Rates)
BUSINESS UNIT	Finance and Corporate Services
REPORTING OFFICER	Rates Coordinator - David Nicholson
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 Rate Exemption Application With Statutory Declaration⇩

This item was considered by the Finance Committee at its meeting on 12/5/2021, the recommendations from which have been included in this report.

COMMITTEE RECOMMENDATION AND OFFICER RECOMMENDATION

That the Council:

1. Grant rate exemption to Waratah Support Centre (South West) Inc. on 24 Kent Street, Busselton, effective 1 July 2020, under section 6.26(2)(g) of the Local Government Act 1995; and

2. Agree that this rate exemption is to continue where Waratah Support Centre (South West) Inc. confirm in writing by 30 April annually that they continue to lease and use the property for the purposes stated in the application.

EXECUTIVE SUMMARY

An application has been received from Waratah Support Centre (South West) Inc. (WSC) for rate exemption on a leased property at 24 Kent Street, Busselton. This property was occupied by WSC in June 2014 and is used to deliver free specialised and therapeutic intervention, counselling and support services to people who have experienced sexual assault and/or abuse and/or family domestic violence. These services are provided free to the community without the need for any user to be a WSC member. This report recommends that exemption be granted effective from 1 July 2020 and not retrospectively due to the application only having been lodged this financial year. Granting of rate exemption would be in accordance with section 6.26(2)(g) of the Local Government Act 1995.

BACKGROUND

The property at 24 Kent Street Busselton was occupied by WSC in June 2014 so as to provide free specialised and therapeutic intervention, counselling and support services to people who have experienced sexual assault and/or abuse and/or family domestic violence. Funding to provide these services is almost totally derived from government grants with WSC being a not-for-profit benevolent institution with a deductible gift receipt status.

Engagement with Western Australian Local Government Association (WALGA)

Following a Council resolution made in May 2019, the Mayor raised this issue with the South West Zone of WALGA (SWZ) at its meeting in May 2019. The SWZ supported the City of Busselton’s view unanimously and resolved as follows:

That the SWZ:

1. Request that WALGA continue to lobby the State Government to consider the removal of rate exemptions for charitable organisations under the Local Government Act 1994 and that an alternative position may be implementing a rebate similar to the Pensioners and Seniors Rebate Scheme.

In response to the SWZ’s resolution, WALGA advised that the SWZ’s position is consistent with the following long-held sector position that:

1. There is a need to amend the Local Government Act to clarify that Independent Living Units should only be exempt from rates where they qualify under the Commonwealth Aged Care Act 1997; and

2. Either:

a. amend the charitable organisations section of the Local Government Act 1995 to eliminate exemptions for commercial (non-charitable) business activities of charitable organisations; or

b. establish a compensatory fund for Local Governments, similar to the pensioner discount provisions, if the State Government believes charitable organisations remain exempt from payment of Local Government rates.

WALGA also added to its submission to the State Government following the consultation on phase 2 of the review of the Local Government Act:

Request that a broad review be conducted into the justification and fairness of all rating exemption categories currently prescribed under Section 6.26 of the Local Government Act.

WALGA are continuing to advocate for this position.

OFFICER COMMENT

Section 6.26 of the Act states that all land is rateable except in certain circumstances. Section 6.26(2)(g) states that “land used exclusively for charitable purposes” is not rateable.

It is considered that the specialised and therapeutic intervention, counselling and support services provided by WSC are charitable in nature and as such the property at 24 Kent Street, Busselton would be eligible for rate exemption under section 6.26(2)(g) of the Act.

No physical inspection of the property has been carried out as the statutory declaration provided on the property’s use is considered sufficient.

WALGA’s advocacy position has not changed in relation to this issue and continues to push for meaningful legislative change in this area. Until then, however, the current approach to rate exemptions due to charitable purpose remains in place.

Statutory Environment

Section 6.26(2)(g) of the Act specifically states that land used exclusively for charitable purposes is not rateable.

Relevant Plans and Policies

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

Financial Implications

Granting rate exemption effective 1 July 2020 would see an estimated $3,667 reduction to Councils 2020/21 rating income.

This rating income reduction would be approximately $3,758 for future financial years where 24 Kent Street, Busselton continues to be leased by WSC and used for providing the free services as per their rate exemption application.

Stakeholder Consultation

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

Risk Assessment

However, if Council choses to decline the rate exemption application then staffing and/or legal costs may be incurred should WSC request the State Administrative Tribunal review the decision.

Options

As an alternative to the proposed recommendation the Council could decline the rate exemption application on the basis that it considers the property to be rateable under the Act. As stated above, this is not recommended based on the risks associated with declining the application.

CONCLUSION

It is considered that the property at 24 Kent Street, Busselton whilst leased by WSC and used by them to deliver free specialised and therapeutic intervention, counselling and support services to people who have experienced sexual assault and/or abuse and/or family domestic violence would be eligible for rate exemption under section 6.26(2)(g) of the Act.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

If the rate exemption on 24 Kent Street, Busselton is granted then it would be effective from 1 July 2020 due to the application only having been lodged this financial year and will be implemented within 1 to 2 weeks of Council’s decision.

Council 72 26 May 2021

12.4 Finance Committee - 12/5/2021 - BUDGET AMENDMENT REQUEST - LEGAL SERVICES

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	Legal and Property Services
REPORTING OFFICER	Manager Legal and Property Services - Ben Whitehill
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	Nil

This item was considered by the Finance Committee at its meeting on 12/5/2021, the recommendations from which have been included in this report.

COMMITTEE RECOMMENDATION AND OFFICER RECOMMENDATION

That the Council endorse:

1. The requested budget amendments outlined in this report, transferring $80,000 from the Legal Expenses Reserve to the Municipal Account.

2. The net budget amendment, as outlined within this report and in accordance with section 6.8(1) of the Local Government Act 1995, results in a nil impact on the 2020/21 annual operating budget and a nil impact on the budgeted net current position.

EXECUTIVE SUMMARY

This report seeks Council approval of a budget amendment as detailed in this report. Adoption of the officer recommendation will result in a nil impact to the City’s budgeted operating result and nil impact on the net current position.

BACKGROUND

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

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

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

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

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

OFFICER COMMENT

Council adopted its 2020/2021 Municipal Budget on Monday 27 July 2020 with a balanced budget position. Since then, officers have identified areas within the budget that require reconsideration or adjustment. It is good management practice to revise the adopted budget when it’s known that circumstances have changed. To ensure this is the case, budgets are reviewed on a monthly basis.

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

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

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

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

The adjustments that are required for this budget amendment are of the type 2 category above. The below commentary outlines the details of the required amendment.

Legal expenses this financial year have exceeded the budget allocation of $50,000. Current expenditure as at 3 May 2020 is $108,343 with further commitments of $26,690 though many of these may not be realised this financial year.

The significant legal expenses already incurred this financial year are summarised below:

Summary of expense	Approximate expense incurred	Comment
External legal advice and representation for extractive industry compliance actions	$30,000	The City has obtained a successful prosecution in one extractive industry prosecution with the other matter continuing.
External legal advice and representation defending an application for judicial review in the Supreme Court	$30,000	The Supreme Court matter found in the City’s favour and the City has a costs order which should see a not insignificant portion of the City’s costs returned either later this financial year or next financial year.
External legal advice about Busselton Performing Arts and Convention Centre (BPACC) – competition law, construction contract and other items	$20,000	External specialist advice sought in response to potential competition law concerns raised. Advice on construction contract terms.
External legal advice relating to potential contamination claims	$12,000	Ongoing specialist legal advice about potential contamination claims.
The payment of costs inclusive excesses for professional indemnity claims	$10,000	$5,000 costs inclusive excess for two potential professional indemnity claims defended by LGIS.

Some of these significant items are one off project related matters (BPACC advice) or atypical (Supreme Court judicial review matter). The City also notified LGIS of an unusually high number of potential professional indemnity claims, four this financial year, two of which the excesses have been invoiced and paid.

To cover a shortfall in the Legal Expenses budget officers recommended that $80,000 is transferred from the Legal Expenses Reserve. Any unspent funds will be returned the Legal Expenses Reserve.

Factors that will impact the level of expenditure over the final two months include whether the outstanding extractive compliance action progresses, whether further specialist legal advice is required for the BPACC construction contract and whether LGIS invoices the City for two excesses for outstanding potential professional indemnity claims.

Statutory Environment

Section 6.8 of the Local Government Act 1995 refers to expenditure from the Municipal fund that is not included in the annual budget. Any adjustments to a budget allocation must be made by an absolute majority decision of the Council. Additionally, where no budget allocation exists, expenditure is not to be incurred until such time as it is authorised in advance, by an absolute majority decision of the Council.

Relevant Plans and Policies

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

Financial Implications

A summary of the financial implications of these recommendations is shown in the table below. The City has a Legal Expenses Reserve which is intended to cover legal expenses over and above the budgeted amount.

Reference Item #	Description	Net Increase in Revenue	Net Additional Expenditure	Net Impact on Operational Budget	Net Impact on Cash	Net Impact on Reserves
1	Increase to Legal Expenses	-	$80,000	-	($80,000)	-
2	Transfer from Legal Expenses Reserve	$80,000	-	-	-	($80,000)

Stakeholder Consultation

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

Risk Assessment

Options

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

CONCLUSION

Council’s approval is sought to amend the budget as per the details contained in this report.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

If the officer recommendation is endorsed, the budget amendment will be processed within a month of being approved.

Council 83 26 May 2021

15. Community and Commercial Services Report

15.1 MARKETING AND EVENTS REFERENCE GROUP OUTCOMES

STRATEGIC GOAL	4. ECONOMY Diverse, resilient, prosperous
STRATEGIC OBJECTIVE	4.3 Events and unique tourism experiences that attract visitors and investment.
SUBJECT INDEX	Marketing and Events Reference Group
BUSINESS UNIT	Community Services
REPORTING OFFICER	Manager, Community Services - Maxine Palmer
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	Absolute Majority
ATTACHMENTS	Nil

OFFICER RECOMMENDATION

That the Council:

1. As part of the 2021/22 Events Sponsorship Program, endorses funding allocations towards the following events, to be funded from the draft 2021/22, 2022/23 and 2023/24 events budgets:

Event	Funding Allocation
Dunsborough Songfest	2021/22 $5,000 2022/23 $5,000 2023/24 $5,000
World Surf League Cape Naturaliste Pro	2021/22 $15,000 2022/23 $15,000 2023/24 $15,000
Taj’s Small Fries	2021/22 $10,000 2022/23 $10,000 2023/24 $10,000
X-Adventure Dunsborough	2021/22 $10,000 2022/23 $10,000 2023/24 $10,000
Eagle Bay Epic	2021/22 $10,000 2022/23 $9,500 2023/24 $9,000
Fine Vines Festival	2021/22 $20,000
Building Bridges – Harmony Day	2021/22 $5,000 (plus up to $1,000 in-kind)
Down South MTB Festival	2021/22 $3,000 2022/23 $3,000 2023/24 $3,000
Busselton Winter Jumping Festival	2021/22 $3,000 2022/23 $3,000 2023/24 $3,000
Busselton Festival of Triathlon	2021/22 $60,000 2022/23 $60,000 2023/24 $60,000 (Plus up to $5,000 in-kind per year)
Yallingup Malibu Classic	2021/22 $4,000 2022/23 $4,000 2023/24 $4,000
Busselton Jetty Swim	2021/22 $40,000 (Plus up to $5,000 in-kind)
Busselton Half Marathon & Fun Run	2021/22 $9,000 2022/23 $6,000 2023/24 $6,000
Busselton Fringe Festival	2021/22 $20,000 2022/23 $20,000 2023/2024 $20,000 (Plus up to $2,000 in-kind per year)
Perth International Jazz Festival	2021/22 $20,000
Cape to Cape MTB	2021/22 $10,000 2022/23 $10,000 2023/24 $10,000
Five Bays Swim	2021/22 $9,000
Busselton LOC – Ironman WA Volunteers Program	2021/22 $20,000 2022/23 $20,000 2023/24 $20,000
MRBTA – Ironman WA FOC Rooms	2021/22 $20,000 2022/23 $20,000 2023/24 $20,000
Carols by the Jetty	2021/22 $3,000 2022/23 $3,000 2023/24 $3,000
Festival of Busselton	2021/22 $25,000 2022/23 $25,000 2023/24 $25,000
Busselton Brass 150^th Celebration	2021/22 $500 (Plus up to $2,000 in-kind traffic management)
RAAF Centenary & BMRA Open Day	2021/22 $20,000
Totals	2021/22 $341,500 (Plus up to $15,000 in-kind) 2022/23 $223,500 (Plus up to $7,000 in-kind) 2023/24 $223,000 (Plus up to $7,000 in-kind)

2. As part of the 2021/22 Events Sponsorship Program endorses funding allocations towards the following events, to be funded from the draft 2021/22 marketing budget:

Event	Funding Allocation
2021 Town Team Conference	2021/22 $5,000
BCCI – Enhancing Community & Business Wellbeing Masterclasses	2021/22 $8,625
Totals	2021/22 $13,625

3. Endorses the allocation of up to $110,000 from the draft 2021/22 events budget for a Winter activation to be held in 2022.

4. Endorses the allocation of up to $5,000 to be funded from the 2020/21 marketing budget towards the replacement of event promotional signage (banners).

5. Endorses the transfer of the remaining balance of the 2020/21 marketing budget to the Airport Marketing Reserve.

6. Endorses the allocation of up to $40,000 to be funded from the 2021/21 events budget for a full review of the City’s Event Strategy.

EXECUTIVE SUMMARY

A meeting of the Marketing and Events Reference Group (MERG) was held on Tuesday 27 April 2021. This report presents the recommendations from this meeting.

BACKGROUND

At the Ordinary Meeting of Council held on 13 April 2011, Council resolved (C1104/114) to endorse the implementation of a differential rating system whereby properties rated industrial and commercial across the City would directly contribute to the City’s continued support of tourism, marketing and event activities. The City also established a key stakeholders reference group, known as the ‘Marketing and Events Reference Group’ (MERG), to make recommendations to Council with respect to the marketing and events budget allocations.

At its meeting on 22 June 2011, Council resolved (C1106/201) to introduce a 3% differential rate on industrial and ccommercial rated properties which has increased over time to 10%. The proceeds from the differential rate are allocated towards funding events and marketing.

The draft 2021/22 budget for marketing and events totals $1,196,700. The proposed breakdown of this budget is as follows:

· $924,900 – Events

· $231,800 – Marketing and economic development initiatives

· $40,000 – City led events

This budget excludes allocations for Leavers Week, administration, and events staffing.

A MERG meeting was held on Tuesday 27 April 2021, with the following key matters presented:

· Update on events held since the last meeting on 23 November 2020 and upcoming major events.

· Round one of the 2021/22 Event Sponsorship Program and associated funding applications for consideration.

OFFICER COMMENT

Supporting the development and attraction of new events throughout the year, the City’s Events Sponsorship Program promotes the City of Busselton as an attractive event tourism destination. At the MERG meeting held 27 April 2021 a range of requests for marketing and events funding were considered as outlined below.

Requests for Funding – 2021/22 Events Budget

Twenty seven (27) applications were received requesting funding from round one of the 2021/22 Events Sponsorship Program, totalling $448,107. All applications were evaluated by officers and presented at the MERG meeting on 27 April 2021. The below table outlines the recommendations of MERG:

Applications for funding through the 2021/22 Events Budget:

Event

Requested

MERG Recommendation

Dunsborough Songfest

2021/22 $10,000

2022/23 $10,000

2023/24 $10,000

2021/22 $5,000

2022/23 $5,000

2023/24 $5,000

World Surf League Cape Naturaliste Pro

2021/22 $25,000

2022/23 $20,000

2023/24 $20,000

2021/22 $15,000

2022/23 $15,000

2023/24 $15,000

* Taj’s Small Fries

2021/22 $10,000

2022/23 $10,000

2023/24 $10,000

2021/22 $10,000

2022/23 $10,000

2023/24 $10,000

X-Adventure Dunsborough

2021/22 $10,000

2022/23 $10,000

2023/24 $10,000

2021/22 $10,000

2022/23 $10,000

2023/24 $10,000

Eagle Bay Epic

2021/22 $10,000

2022/23 $11,000

2023/24 $12,000

2021/22 $10,000

2022/23 $9,500

2023/24 $9,000

* Fine Vines Festival

2021/22 $20,000

* Building Bridges – Harmony Day

2021/22 $10,000

2021/22 Up to $5,000

(plus up to $1,000 in-kind)

Down South MTB Festival

2021/22 $3,000

2022/23 $3,000

2023/24 $3,000

2021/22 $3,000

2022/23 $3,000

2023/24 $3,000

Busselton Winter Jumping Festival

2021/22 $6,257

2022/23 $5,465

2023/24 $5,465

2021/22 $3,000

2022/23 $3,000

2023/24 $3,000

Busselton Festival of Triathlon

2021/22 $60,000

2022/23 $65,000

2023/24 $70,000

(Plus up to $5,000 in-kind per year)

2021/22 $60,000

2022/23 $60,000

2023/24 $60,000

(Plus up to $5,000 in-kind per year)

Yallingup Malibu Classic

2021/22 $5,000

2022/23 $5,000

2023/24 $5,000

2021/22 $4,000

2022/23 $4,000

2023/24 $4,000

Busselton Jetty Swim

2021/22 $40,000

(Plus up to $5,000 in-kind)

2021/22 $40,000

(Plus up to $5,000 in-kind)

* Busselton Half Marathon & Fun Run

2021/22 $9,000

2022/23 $6,000

2023/24 $6,000

2021/22 $9,000

2022/23 $6,000

2023/24 $6,000

Busselton Fringe Festival

2021/22 $25,000

2022/23 $25,000

2023/24 $25,000

(Plus up to $2,000 in-kind per year)

2021/22 $20,000

2022/23 $20,000

2023/2024 $20,000

(Plus up to $2,000 in-kind per year)

Perth International Jazz Festival

2021/22 $59,400

2021/22 $20,000

* Cape to Cape MTB

2021/22 $20,000

2022/23 $20,000

2023/24 $20,000

2021/22 $10,000

2022/23 $10,000

2023/24 $10,000

Five Bays Swim

2021/22 $9,000

Busselton LOC – Ironman WA Volunteers Program

2021/22 $20,000

2022/23 $20,000

2023/24 $20,000

2021/22 $20,000

2022/23 $20,000

2023/24 $20,000

MRBTA – Ironman WA FOC Rooms

2021/22 $20,000

2022/23 $20,000

2023/24 $20,000

2021/22 $20,000

2022/23 $20,000

2023/24 $20,000

* Carols by the Jetty

2021/22 $3,300

2022/23 $3,300

2023/24 $3,300

2021/22 $3,000

2022/23 $3,000

2023/24 $3,000

Festival of Busselton

2021/22 $25,000

2022/23 $25,000

2023/24 $25,000

2021/22 $25,000

2022/23 $25,000

2023/24 $25,000

* Busselton Brass 150^th Celebration

2021/22 $500

(Plus up to $2,000 in-kind traffic management)

2021/22 $500

(Plus up to $2,000 in-kind traffic management)

Busselton Rainbow Dog Walk

2021/22 $2,000

(Refer to Donations, Contributions & Subsidies Fund)

Busselton Australia Day celebrations

2021/22 $6,000

2022/23 $6,000

2023/24 $6,000

To be deferred

RAAF Centenary & BMRA Open Day

2021/22 $20,000

Totals

2021/22 $430,457

2022/23 $264,765

2023/24 $270,765

2021/22 $341,500

(Plus up to $15,000 in-kind)

2022/23 $223,500

(Plus up to $7,000 in-kind)

2023/24 $223,000

(Plus up to $7,000 in-kind)

The following considerations are proposed to be requested of the below events as part of the allocated funding:

· Taj’s Small Fries – consider moving the event outside of the January school holidays.

· Fine Vines Festival – all reasonable efforts to be made to hold a minimum of 50% of events within the City of Busselton, including official launch/closing events.

· Building Bridges – Harmony Day – consider developing and re-branding of the event as an international food festival, hold the event on a Saturday.

· Busselton Half Marathon and Fun Run – consider change of date away from Jetty Swim weekend.

· Cape to Cape MTB – consider having 2 consecutive days, including start/finish venues, within the City of Busselton.

· Carols of the Jetty – consider review of programming to include more traditional, well known Christmas carols and content.

· Busselton Brass 150^th Celebration – consider using Mitchell Park as the concert venue.

Applications for funding through the 2021/22 Marketing Budget (Economic Development initiatives)

Event	Requested	MERG Recommendation
2021 Town Team Conference	2021/22 $5,000	2021/22 $5,000
BCCI – Enhancing Community & Business Wellbeing Masterclasses	2021/22 $12,650	2021/22 $8,625
Totals	2021/22 $17,650	2021/22 $13,625

Winter Wonderland event

Officers have been investigating a Winter activation to drive visitation and attract families over the July school holidays. A proposal has been received from Ice Rinks Australia (IRA), a Melbourne based company that provides ice rinks in venues all over Australia including Perth City, Fremantle and Mandurah. Their proposal includes an upfront cost to the City of $90,000, IRA to retain the first $80,000 of ticket sales, then ticket revenue over $80,000 to be split 50/50. This covers hire of the 20m x 10m ice rink, all skates and equipment, event staffing, ticketing system and point of sale (POS) software system, lighting and audio visual, event management, inflatable play equipment and public liability for a 23-day hire period. The City would be responsible for providing the venue, marquee to cover the ice rink, and any additional infrastructure and food and drink vendors (Winter Village) if desired. The estimated cost to provide the marquees and associated infrastructure and equipment would be approximately $20,000.

The proposal was discussed by MERG where it was felt that this activation would be best to hold over until winter 2022, following completion of the Mitchell Park redevelopment. This would allow more time to work with local businesses to secure their involvement, and also allow staff to seek quotes from other companies to ensure a more competitive process.

It is recommended that up to $110,000 be allocated from the draft 2021/22 events budget to fund a winter activation for 2022.

Requests for Funding – 2020/21 Marketing Budget – Events Signage (Banners)

The City has a supply of event banners including teardrop banners, cloth rectangle banners and indoor pull up banners. These are distributed to all funded events as part of the contractual obligations when receiving sponsorship. While all care is taken to ensure that banners are issued and received back in good condition, over time the condition of banners, in particular the teardrop banners, have deteriorated to the point where there are only a small amount that are in good repair and cleanliness. There has been no new event signage purchased since 2017.

Officers have sought quotes from local suppliers, which have so far ranged from $225 to $300 per banner. It is recommended that up to $5,000 is allocated from the draft 2020/21 marketing budget, to allow for the purchase of new teardrop banners. Depending on the accepted quote, this will purchase up to 22 new banners.

Events Strategy

At the meeting of 9 September 2020, Council endorsed (C2009/110) the allocation of up to $12,000 towards the update of the City’s Event Strategy. A Request for Quotation was issued which closed the day after the MERG meeting on 28 April 2021. No submissions were received. Ten suppliers downloaded the document from Vendor Panel. Each were contacted for feedback to understand reasons for not submitting a proposal. Capacity with current resourcing and workloads, concerns regarding the ability to deliver the scope within the 10 weeks specified and the sufficiency of the allocated budget of $12,000 were cited as the key issues.

The budget of $12,000 was agreed before the full extent of funding remaining in the 2020/21 budget was known and prior to a full scope of works had been developed. The Events Strategy is a critical document that determines how over a million dollars of differential rates are allocated and administered annually to support key economic and social outcomes for our community. Since the Strategy was developed there have been significant investment decisions made to upgrade the airport, foreshores and CBDs with multi-million dollar priority projects such as the Australian Underwater Discovery Centre, Performing Arts and Convention Centre, Shelter Brewery and Hilton Hotel. These developments and their potential needs to be fully explored and capitalised upon in new strategies for events.

Based on supplier feedback, it is recommended a revised budget of up to $40,000 be allocated towards the review to deliver the full scope of works. Suppliers will still be required to provide a cost breakdown and price each deliverable separately so that elements can be prioritised and options available not to expend the full amount. The timeframes to deliver the work will also be extended to three to four months.

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 with the City’s Events Policy which provides event organisers with information on the event application and approval process and event sponsorship guidelines.

Financial Implications

At the Council meeting on 27 July 2020, Council resolved (C2007/070) to include an allocation of $1,076,414 in the 2020/21 marketing and events budgets. At the meeting on 9 September 2020, Council endorsed (C2009/110) the following allocations from the 2020/21 events and marketing budgets:

· $786,414 towards event sponsorship,

· $250,000 towards Marketing and Economic Development initiatives, and

· $40,000 towards City run events.

Funds currently committed from the 2020/21 events budget through multi-year agreements and Rounds 1 and 2 of the Event Sponsorship Program totals $380,562. In addition, $200,000 is allocated towards the development of an electronic events billboard. This leaves a balance of $205,852 in the 2020/21 events budget for any further event attraction or initiatives. This balance includes funds from cancelled events.

Of the $250,000 allocated to the 2020/21 marketing budget, $120,000 has been allocated to the Airport Marketing Reserve, $50,000 to the Busselton Performing Arts and Convention Centre (BPACC), up to $12,000 had been allocated to update the City’s Events Strategy and up to $5,000 for the update of tourism signage, leaving a balance of $63,000 for any further initiatives. It is recommended that the remaining balance after any further allocations be transferred to the Airport Marketing Reserve.

Of the $40,000 allocated to City run events, a total of $11,684 was spent on seven Sun-Sets on the Bay events in Busselton and Dunsborough. This leaves a balance of $28,316. Pending any further initiatives, the remaining balance at the end of financial year will remain in the Marketing and Area Promotion Reserve.

The draft 2021/22 budget includes an allocation of $1,196,700 in the marketing and events budget, with a proposed split of $924,900 for events, $231,800 for marketing and economic development initiatives, and $40,000 for City led events.

From the marketing budget, $120,000 is proposed to be allocated to the Airport Marketing Reserve and $50,000 is proposed to be allocated to the BPACC, leaving a balance of $61,800 to be applied to marketing and economic development initiatives in the 2021/22 financial year, with no current proposals earmarked.

Funds that are already committed in the draft 2021/22 Events budget through multi-year agreements totals $385,000, which leaves a total of $539,900 to be allocated to Rounds 1 and 2 of the 2021/22 Events Sponsorship Program. These amounts are indicative, subject to final confirmation of the 2021/22 budget.

Stakeholder Consultation

Consultation has been undertaken with MERG members with representatives comprising the Busselton and Dunsborough Yallingup Chambers of Commerce and Industry, MRBTA, Busselton Jetty Inc. and the City of Busselton.

Risk Assessment

Options

As an alternative to the proposed recommendation, the Council could choose not to support the recommendations made by MERG and resolve not to endorse part or all of the recommendations.

CONCLUSION

MERG has been established by Council to make recommendations on the way in which funds raised through the industrial and commercial differential rate for the purposes of events and marketing are allocated. This report contains the recommendations made at the 27 April 2021 MERG meeting, which if endorsed by Council, will result in the continuation of high quality events being held within the region, supported by successful marketing promotions. All recommendations support Council’s vision of being recognised as the ‘Events Capital WA.’

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Following Council’s decision, the outcomes will be communicated to MERG members and relevant event/marketing bodies for their information and implemented where required.

Council 87 26 May 2021

17. Chief Executive Officers Report

17.1 COUNCILLORS' INFORMATION BULLETIN

STRATEGIC GOAL	6. LEADERSHIP Visionary, collaborative, accountable
STRATEGIC OBJECTIVE	6.1 Governance systems, process and practices are responsible, ethical and transparent.
SUBJECT INDEX	Councillors' Information Bulletin
BUSINESS UNIT	Executive Services
REPORTING OFFICER	Reporting Officers - Various
AUTHORISING OFFICER	Chief Executive Officer - Mike Archer
NATURE OF DECISION	Noting: The item is simply for information purposes and noting
VOTING REQUIREMENT	Simple Majority
ATTACHMENTS	Attachment a Acknowledgement Letter : Hon Sue Ellery MLC ⇩ Attachment b Letter of Thanks : ANZAC Day 2021 ⇩

OFFICER RECOMMENDATION

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

17.1.1 Current Active Tenders

17.1.2 Donations, Contributions and Subsidies Fund – April 2021

17.1.3 Correspondence from Hon Sue Ellery MLC Minister for Education and Training; Leader of the Legislative Council

17.1.4 Correspondence from Busselton RSL – ANZAC Day 2021

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.

RFT 04/21 ROAD NETWORK UPGRADE – PEEL TERRACE CAUSEWAY ROAD INTERSECTION UPGRADE – STAGE 1A

· Invitation for tenders will be advertised during June 2021.

RFT 05/21 PROCESSING AND DISPOSAL GREEN WASTE

· Requirement – processing and removal of green waste at the City’s waste facilities.

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

· 3 Tenders were received, which are under evaluation.

· 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).

· A report to Council for a decision on the tender will be included in the 9 June 2021 Council meeting agenda.

RFT 06/21 CONSTRUCTION OF BUSSELTON PERFORMING ARTS AND CONVENTION CENTRE

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

· Pursuant to an Expression of Interest process the CEO, under delegation, shortlisted all seven respondents as acceptable tenderers.

· A request for tender was issued to all seven tenderers on 19 March 2021.

· The tender closed on 7 May 2021 and 3 submissions received.

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

· It is intended that a report to Council for a decision on the tender will be included in the 23 June 2021 Council meeting agenda.

RFT 07/21 STREET AND DRAIN CLEANING SERVICES

· Requirement – street and drain cleaning services across the City of Busselton.

· Invitation for tenders was advertised on 12 May 2021, with a closing date of 1 June 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 intended that a report to Council for a decision on the tender will be presented to Council in July 2021.

RFT 08/21 DUNSBOROUGH LAKES SPORTS PRECINCT- SUPPLY AND PLANTING OF TURFGRASS

· Requirement - supply and install of turf grass sod at Dunsborough Lakes Sports Precinct.

· A request for tender was advertised on 10 April 2021 and closed on 4 May 2021.

· The value of the contract may (or may not) exceed the CEO’s delegated power for accepting tenders (DA 1 – 07 Inviting, Rejecting and Accepting Tenders).

· If the value of the contract exceeds the CEO’s delegated power, a report to Council for deciding which tender to accept will be included in the 9 June 2021 Council meeting agenda.

· One tender submission was received from LD Total with 6 different turf options (and a range of prices).

RFT 10/21 UPGRADE OF NINE PUBLIC OPEN SPACE AREAS

· Revised scoping and timing of this project is being considered by City officers.

RFT 11/21 DUNSBOROUGH NON-POTABLE WATER NETWORK

· Requirement – installation of:

o a pump station and associated electrical works at the Dunsborough 1 Sue Coal production bore located in the road reserve in Quindalup; and

o a pipeline from the bore to the irrigation storage tanks at the Diamante Blvd pump station.

· A request for tender was advertised on 5 May 2021 and closes on 27 May 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).

· If the value of the contract exceeds the CEO’s delegated power a report to Council for deciding which tender to accept will be included in the 23 June 2021 Council meeting agenda.

17.1.2 Donations, Contributions and Subsidies Fund – April 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 endeavors that bring direct benefit to the broader community.

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

Two applications were approved in April 2021, totaling $616, as outlined in the table below:

Recipient	Purpose	Amount
GeoCatch	GeoCatch hosted a free community event 'Container Planting: It's all in the soil' in the Kent St Laneway on 17 April 2021. Funds requested to cover the unexpected cost of a traffic management plan required due to the laneway being closed for the event.	$316.00
Obie Herring	Obie qualified to represent WA as part of the U15 boys’ team at the National Jnr Table Tennis Championships in Caloundra, NSW from 3-11 July 2021. Funds to assist with travel related expenses.	$300.00

17.1.3 Correspondence from Hon Sue Ellery MLC Minister for Education and Training; Leader of the Legislative Council

Correspondence has been received from Hon. Sue Ellery MLC Minister for Education and Training; Leader of the Legislative Council, thanking the Mayor and CEO for their letter of congratulations on Minister Ellery’s reappointment as a Minster in the McGowan government. A copy of the letter is provided at Attachment A.

17.1.4 Correspondence from Busselton RSL – ANZAC Day 2021

Correspondence has been received from Mr Glenn Woodward, President, Busselton RSL Sub-branch, thanking the City for its involvement in recent ANZAC Day activities. A copy of the letter is provided at Attachment B.

Council		10		26 May 2021
12.1	Attachment a		List of Payments - March 2021

Council		43		26 May 2021
12.2	Attachment a		Financial Activity Statement - March 2021

Council		69		26 May 2021
12.3	Attachment a		Rate Exemption Application With Statutory Declaration

Council		88		26 May 2021
17.1	Attachment a		Acknowledgement Letter : Hon Sue Ellery MLC