Late Items Agenda of Council - Tuesday, 25 January 2022

Supplementary Items 4 25 January 2022

12.3 Finance Committee - 19/1/2022 - LIST OF PAYMENTS MADE - NOVEMBER 2021

STRATEGIC THEME	LEADERSHIP - A Council that connects with the community and is accountable in its decision making.
STRATEGIC PRIORITY	4.2 Deliver governance systems that facilitate open, ethical and transparent decision making.
SUBJECT INDEX	Financial Operations
BUSINESS UNIT	Financial Services
REPORTING OFFICER	Manager Financial Services - Paul Sheridan
AUTHORISING OFFICER	Acting Director, Finance and Corporate Services – Sarah Pierson
NATURE OF DECISION	Noting: The item is simply for information purposes and noting
VOTING REQUIREMENT	Simple Majority
ATTACHMENTS	Attachment a List of Payments - November 2021 ⇩

This item was considered by the Finance Committee at its meeting on 19/1/2022, the recommendations from which have been included in this report.

COMMITTEE RECOMMENDATION

That the Council notes payment of voucher numbers M119008 – M119050, EF083070 – EF083912, T7578 – T7580, DD004658 – DD004693, as well as payroll payments, together totaling $8,492,817.32

OFFICER RECOMMENDATION

That the Council notes payment of voucher numbers M119008 – M119050, EF083070 – EF083912, T7578 – T7580, DD004658 – DD004693, as well as payroll payments, together totaling $8,492,817.32

EXECUTIVE SUMMARY

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

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.

Supplementary Items 39 25 January 2022

12.4 Finance Committee - 19/1/2022 - FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 30 NOVEMBER 2021

STRATEGIC THEME	LEADERSHIP - A Council that connects with the community and is accountable in its decision making.
STRATEGIC PRIORITY	4.2 Deliver governance systems that facilitate open, ethical and transparent decision making.
SUBJECT INDEX	Financial Services
BUSINESS UNIT	Financial Services
REPORTING OFFICER	Manager Financial Services - Paul Sheridan
AUTHORISING OFFICER	Acting Director, Finance and Corporate Services – Sarah Pierson
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 Loan Schedule - November 2021 ⇩ Attachment b Investment Report - November 2021 ⇩ Attachment c Financial Activity Statement - November 2021 ⇩

This item was considered by the Finance Committee at its meeting on 19/1/2022, the recommendations from which have been included in this report.

COMMITTEE RECOMMENDATION

That the Council receives the statutory financial activity statement reports for the period ending 30 November 2021, pursuant to Regulation 34(4) of the Local Government (Financial Management) Regulations 1996.

OFFICER RECOMMENDATION

EXECUTIVE SUMMARY

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

This report has been compiled to fulfil the statutory reporting requirements of the Act and associated Regulations, whilst also providing the Council with an overview of the City’s financial performance on a year to date basis, for the period ending 30 November 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 26 July 2021, the Council adopted (C2107/140) the following material variance reporting threshold for the 2021/22 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 can be provided as required to further supplement the information comprised within the statutory financial reports.

Comments on Financial Activity to 30 November 2021

The Statement of Financial Activity (FAS) for the year to date (YTD) shows an overall Net Current Position of $34.1 as opposed to the budget of $18.8M. This represents a positive variance of $15.3M YTD.

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	2021/22 Actual YTD $	2021/22 Amended Budget YTD $	2021/22 Amended Budget $	2021/22 YTD Bud Variance %	2021/22 YTD Bud Variance $	Change in Variance Current Month $
Revenue from Ordinary Activities				*1.20%*	*818,453*	*111,994*
1. Other Revenue	310,949	78,116	414,950	298.06%	232,833	(1,953)
Expenses from Ordinary Activities				*9.42%*	*3,436,226*	*630,438*
2. Materials & Contracts	(5,854,162)	(7,170,299)	(20,245,296)	18.36%	1,316,137	106,693
3. Utilities	(934,154)	(1,043,849)	(2,774,773)	10.51%	109,695	72,282
4. Other Expenditure	(1,278,083)	(2,680,614)	(9,685,100)	52.32%	1,402,531	387,990
5. Non-Operating Grants, Subsidies and Contributions	822,048	6,145,480	34,850,687	(86.62%)	(5,323,432)	88,818
Capital Revenue & (Expenditure)				*45.27%*	*14,402,505*	*3,275,066*
6. Land & Buildings	(412,514)	(8,742,442)	(22,802,632)	95.28%	8,329,928	1,411,584
Plant & Equipment	(574,245)	(408,000)	(2,890,000)	(40.75%)	(166,245)	(11,967)
Furniture & Equipment	(132,389)	(295,950)	(828,800)	55.27%	163,561	(48,217)
Infrastructure	(4,503,477)	(14,114,138)	(38,537,750)	68.09%	9,610,661	2,508,835
7. Proceeds from Sale of Assets	0	195,095	776,071	(100.00%)	(195,095)	(48,645)
8. Total Loan Repayments – Principal	(1,018,178)	(1,159,501)	(3,839,418)	12.19%	141,323	35,420
9. Transfer to Restricted Assets	(5,394,231)	0	(21,740)	(100.00%)	(5,394,231)	(702,220)
10. Transfer from Restricted Assets	2,020,043	0	1,735,682	100.00%	2,020,043	346,582

Revenue from Ordinary Activities

In total, revenue from Ordinary Activities is very close to budget at only 1.20% ahead YTD. There is however two material variance items requiring comment.

1. Other Revenue

Ahead of YTD budget by $233K, or 298.1%, 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 & Corporate Services*		*43,847*	*14,392*	*29,455*	*204.66%*	*3,438*
10100	Long Service Leave Re-imbursements from other LG’s	25,999	-	25,999	(100.00%)	-
The reimbursement came in a lot earlier than was originally predicted in the budget. This will rectify by year end.
*Engineering and Works Services*		*219,940*	*4,679*	*215,261*	*4600.58%*	*893*
G0030 & G0031	Busselton & Dunsborough Transfer Station – Sale of Scrap Materials	217,138	4,251	212,887	5007.94%	893
The budget for the receipt of income relating to the sale of scrap materials (metal in particular) has not been aligned effectively with actual receipts. This should rectify somewhat as the year progresses. It should also be noted that the prices received for scrap metal have been extremely favourable – up to $220/tonne received in July and $255/tonne received in November for major collections in both months, compared to $110-$140/tonne during 2020. When prices are this good, a lot more material is moved to take advantage (causing budget timing variances). When they are lower, materials are stockpiled and only moved when space is required (which gives rise to the historic trend of the budget timing).

Expenses from Ordinary Activities

Expenditure from ordinary activities is $3.8M, or 10.4%, less than expected when compared to the budget YTD as at November. The expense line items on the face of the financial statement that have a YTD variance that meet the material reporting threshold are outlined below.

2. Materials & Contracts

Less than YTD budget by $1.3M. The main contributors to this variance are listed in the table below:

Cost Code	Cost Code Description	Actual YTD $	Amended Budget YTD $	Variance YTD $	Variance YTD %	Change in Variance Current Month $
*Finance and Corporate Services*		*524,536*	*953,477*	*428,941*	*45.0%*	*73,259*
10000	Members of Council	12,942	64,035	51,093	79.8%	(36)
Timing variance with payment of WALGA subscriptions delayed. These variances will persist even when this is paid, as the actual cost will spread and be allocated evenly over the term of the subscription, whereas the budget was set on a historical cash-outlay basis.

10105	Business Systems Improvement Team	-	13,230	13,230	100.0%	2,646
It is expected that the budget allocation of $31,750 will remain unused until the end of December when there will be expenditure of about $18K on consultants to support the change of the chart of accounts. The remaining $13,750 budget allocation will not expected to be used until March 2022.
10151	Rates Administration	103,650	127,121	23,471	18.5%	9,012
Variation between YTD actual and budget is mainly due to: · Postage $12.1K under budget due to 2^nd instalment notice postage invoice having not been processed plus cost savings by using a new printing service for final and reminder notices · Bank charges $20.5K under budget as the charges have come a lot less than expected. · Legal expenses $19.2K over budget due to a substantial increase in debt recovery proceedings. This expenditure is fully recovered from the property owner/s. · Consultancy $6.7K under budget due to the rating review project that this budget is for only just now commencing. There will be under underspend in this area offset by a possible overspend in wages, as an internal resource has been seconded to the project to help defray external consulting costs.
10200	Financial Services	15,856	42,788	26,932	62.9%	3,042
Savings to budget are as a result of bank charges not coming in at the level expected, and some budgeted subscriptions either being cancelled, allocated to more appropriate areas, or spread over the year rather than hitting one month per the way the budget was set (based on historical cashflows, rather than accrual accounting).
10250	Information & Communication Technology Services	265,968	428,878	162,910	38.0%	55,999
Most of this budget relates to software licence renewals and subscriptions paid in advance. The monthly allocation of the annual budget was set based on an historical 4 year monthly cash payment trend. This will not necessarily align on a monthly basis with the new prepaid expenses allocation process that has been adopted to more accurately reflect proper accrual accounting practices, however it should resolve by year end.
10500	Legal and Compliance Services	11,061	51,310	40,249	78.4%	(288)
The variance YTD relates predominantly to the unspent budgeted amount for external legal services. It is not possible to predict when or to what extent legal services will be required at the time of setting the budget, therefore the annual allocation is spread evenly over the year.
10510	Governance Support Services	11,626	46,589	34,963	75.0%	3,934
The underspend is due to a number of software licenses for programs used in the Governance area not as yet being renewed. When paid, the cost for these will be spread over the term of the license, so timing differences to the budget (set based on historical cash trend), will persist.
10616, 10617, & 10618	Aged Housing	25,725	69,825	44,100	63.2%	936
We can never say with certainty when this budget will be drawn on, even in comparison to prior year trends, as works are carried out throughout the year and generally need to coincide with vacancies. It is likely refurbishment works will be carried out on at least one unit in the next 4-6 weeks.

*Community and Commercial Services*		*546,944*	*1,014,827*	*467,883*	*46.1%*	*20,291*
10380 & 10381	Busselton & Dunsborough Libraries	43,022	91,446	48,424	53.0%	(401)
The variances YTD mainly arise in relation to the cost of Computer Software Licences used at the libraries being spread over the period they relate to, rather than when the cash is outlaid, which is how the budget was allocated.
10540	Recreation Administration	(2,742)	25,695	28,437	110.7%	27
The credit relates to year end accrual reversals for which invoices are still yet to be received.
10543	Community Development	787	60,075	59,288	98.7%	(676)
This relates to the Strengthening Communities program funded by Lotterywest. The program is still in development and procurement has not yet taken place. It is anticipated that this program will be launched during November/December with bulk of expenditure now expected from Jan 2022.
10591	Geographe Leisure Centre	142,156	129,636	(12,520)	(9.7%)	(179)
The overspend YTD is due to increased expenditure in cleaning consumables/maintenance, earlier than forecast procurement of non-capital furniture and office equipment, and increased expenses for café consumables, which is offset by additional income.
10600	Busselton Jetty Tourist Park	174,878	234,070	59,192	25.3%	746
The YTD variance is mainly due to the monthly payment of the Park Management Contract being one month in arrears. By end of financial year this expenditure catches up, as June will be accrued, however the budget timing does not reflect this.
10625	Art Geo Administration	31,263	41,406	10,143	24.5%	(2,380)
The underspend at ArtGeo is offset in wages i.e. where staff have the skills to deliver the service we use them and not contractors as it achieves better outcomes.
10630	Economic and Business Development Administration	16,044	29,033	12,989	44.7%	53
The majority of this spend is allocated in Consultancy and with ED team not resourced at this time, consultancy tasks have been deferred to 2022.
10900	Cultural Planning	8,217	22,070	13,853	62.8%	4,414
Awaiting confirmation of further grant monies before engagement of consultants.
11151	Airport Operations	81,877	292,549	210,672	72.0%	16,796
YTD variances are mainly due to: · Airport screening services – allocated monthly amounts have been delayed until flights start. · Planned consultancy tasks not started. · A number of contractor invoices having not been received. · Underspends in Contract building cleaning costs & fire safety materials.

B1361	YCAB (Youth Precinct Foreshore)	15,299	39,785	24,486	61.5%	125
Variance YTD is due to: · $9k allocated for future commitments; · $10k of allocated budget for consultants to be used for wages to fund Dunsborough youth Saturday night program; · Planned crime prevention grant funding spending has been deferred to January 2022; · Planned expenditure for mental health week was cancelled, with the budgeted funds to be allocated to a future event; · No expenditure on furniture as to date - this will be allocate to The Break Dunsborough youth space.
*Planning and Development Services*		*378,873*	*272,510*	*(106,363)*	*(39.0%)*	*(27,774)*
10805	Planning Administration	3,828	17,390	13,562	78.0%	3,478
Computer software license renewals have either not as yet been received, so no allocations for these costs have occurred, or those that have, have been spread over the term of the licence rather than all in one hit at time of payment.
10820	Strategic Planning	30,259	65,460	35,201	53.8%	(1,284)
The variance YTD is essentially due to holistic Consultancy budget being allocated across the 12-month period. Strategic Planning is subject to competing demands and project prioritisation (also timing delays etc. due to consultancy periods, peak authority feedback or processes and lack of availability on occasion of specialised consultant assistance). Appointment of consultants or other anticipated strategic expenditures are always difficult to predict on that basis.
10922	Preventative Services – Mosquitoes	29,863	19,405	(10,458)	(53.9%)	10,886
The City’s contribution to the CLAG chemical and communications budget has been transferred after receiving the Department of Health grant for mosquito control.
10925	Preventative Services - CLAG	73,260	59,450	(13,810)	(23.2%)	30,227
The CLAG budget is fully reconciled with the Shire of Capel after the mosquito season each year. This will occur circa February and all changes made accordingly by the EOFY each year.
10931	Protective Burning & Firebreaks-Reserves	155,870	11,713	(144,157)	(1230.7%)	(63,601)
The YTD variance is as a result of an invoice for works completed late in the 20/21 financial year that was not accrued. Funding from DFES was received in last financial year for these works, so this contributed to part of the end of year budget surplus, but will therefore effectively reduce any 21/22 financial year surplus.
Various	Bushfire Brigades	27,747	12,542	(15,205)	(121.2%)	(5,581)
Bush Fire Brigades are currently preparing for the upcoming fire season. A large amount of PPE has been purchased in readiness for dispersal to BFB as required.

*Engineering and Works Services*		*4,403,571*	*4,926,670*	*523,099*	*10.6%*	*(75,017)*
10830	Environmental Management Administration	137,825	121,335	(16,490)	(13.6%)	(41,184)
The YTD overspend is due to miscoding of Sustainability Services consulting invoices related to Vasse river capital projects. This will be rectified in the January accounts.
11170	Meelup Regional Park	15,667	98,550	82,883	84.1%	8,189
The recreation reserve maintenance budget was spread evenly across the year and thus does not reflect seasonally impacted expenditure patterns. To this end, planning is underway for the noxious weed control program and works associated with the Healthy Countries Plan. $95K in works have been committed representing works that are now underway or will commence shortly.
12600	Street & Drain Cleaning	139,233	168,520	29,287	17.4%	(19,948)
The budget was entered based on historical expenditure patterns averaged over the previous three financial years. All of $465K annual budget has already been committed based on a scheduled maintenance plan, so the YTD variance is timing only.
12620 & 12621	Rural & Urban Tree Pruning	148,436	426,192	277,756	65.2%	53,013
This year’s rural tree pruning budget of $352K included $153K carried over from the prior year. Works are ordinarily planned to be done by the end of November 2021 however priority has been given to storm damage clean-up activities meaning some of these works will now occur later the financial year. The rural road verges to be pruned are prioritised based on the time since last pruned, inspections, volume and types of traffic and numerous other considerations. This is a timing variance only.
Various	Bridge Maintenance	37,551	124,623	87,072	69.9%	(10,862)
Bridge Maintenance works are largely scheduled to occur post-Christmas and in the later part of the financial year when water levels are at their lowest. Planning for these works is well underway and the downward trend YTD variance ($10K reduction since October) is expected to continue in the coming months.
Various	Waste Services	826,032	1,027,635	201,603	19.6%	(21,075)
$135K of the variance is associated with concrete crushing and a further $73K is associated with green waste processing, both that are planned for later in the financial year. $87K is attributable to External Restoration Works associated with the Rendezvous contaminated sites matter while another $38K of the variance is associated with postponement of the FOGO trial, where no costs are being incurred.
Various	Roads Maintenance	546,037	353,520	(192,517)	(54.5%)	(32,442)
Road Maintenance activities are generally greater in the first five months of the year as the City’s maintenance and construction crews focus on maintenance grading, road shoulders maintenance, road surface repair, drainage maintenance, fixing pot holes etc. There has been an overspend to budget mostly attributable to greater than anticipated works in relation to storm damage clean-up activities contributing to the year to date variance.
Various	Reserves, Parks & POS Maintenance	622,197	722,158	99,961	13.8%	79,293
Underspend in reserves is linked to a number of cost codes including R0310 Eastern Link Landscape areas (project recently completed and maintenance just underway), R0315 Vasse Village Centre (which has only just been handed over to the city from the developer and contractor engaged), Dunsborough Lakes Sporting Precinct (project not yet completed by Major Projects) and a number of new Dunsborough Lakes cost codes (some not yet been handed over to the City).

3. Utilities

Underspent compared to YTD November budget by $110K, or 10.5%, due to:

Natural Account	YTD Budget	YTD Actual	Variance	Comments
3500 - Electricity	673,106	658,159	14,947	November’s Synergy invoice worth $20K did not arrive in time to be processed into November.
3505 - Gas - Reticulated	2,432	864	1,568	Immaterial
3506 - Gas - LPG Bottled	6,135	10,529	(4,394)	Main cause is the GLC – There has been an increased LPG demand due to geothermal heating issues. This variance has since corrected itself and as of January we are back on track, and unlikely to exceed budget by year end.
3507 - Gas - Alinta Boiler Gas (BJTP)	1,786	1,367	419	Immaterial
3510 - Water Consumption	80,634	49,331	31,303	High use of Water usually happens over the summer months. Plus billing is not every month. Water Corp bill’s every 60 days and Bsn Water bill 3 times a year.
3511 - Water Meter Rental & Supply Charge	27,487	32,502	(5,015)	Charge for Airport accounts for $3200 of the $5000 variance – generally there are variances across the board. Question if budget set on last years or on averages?
3512 - Water Rates	0	0	0	NA
3513 - Sewerage Volume Charges	30,674	24,591	6,083	Budget included $5900 for the Goose – no charge recorded, presumably as it has burnt down and is not operating
3514 - Sewerage Charge (Rates)	88,499	55,621	32,878	Annual charges are now spread over the period they relate to, rather than hitting the budget all in one go.
3520 - Office Telephones, Faxes & Internet	40,025	32,697	7,328	Recently the City has been migrating to better and cheaper fixed line services. This is starting to show cost savings.
3521 - Public WIFI	16,540	16,892	(352)	Immaterial
3522 - Mobile Devices Costs	41,711	21,743	19,968	The City moved to cheaper mobile phone and mobile data plans with Telstra in 2021. This has led to significant cost savings in this area.
3524 - Other Telecommunication & Network Costs	34,820	29,857	4,963	Similar reason to the above commentary in fixed line and mobiles.
	1,043,849	934,154	109,695

4. Other Expenditure

$1.4M, or 52.3%, 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 $
*Finance and Corporate Services*		*375,540*	*470,679*	*95,139*	*20.2%*	*98,062*
10000	Members of Council	171,827	357,905	186,078	52.0%	135,240
Timing related variances with underspends in member allowances and sitting fees, plus some more minor underspends in reimbursements and training expenses due to change of council members. The cost of Council elections was budgeted for November, however the bill was not received until December.
10151	Rates Administration	14,990	25,455	10,465	41.1%	2,297
It is not possible to predict when building completions or new developments and business will be completed or finalised, so that they can be sent to LVS for valuations. The budget is spread evenly, however actual valuations for interim rating purposes has not eventuated in that timeframe.
10200	Financial Services	33,420	-	(33,420)	(100.0%)	(25,700)
The original budget for the valuation of the City’s Land & Buildings was removed, as it was thought that a qualified in-house valuer would be able to perform this task. This did not eventuate, so a third party valuer needed to be engaged in order to complete the statutory valuations in the required timeframe.
10221/27/ 28/29/30	Finance & Borrowing Program 04/11/12/13/14	100,095	-	(100,095)	(100.0%)	-
Notification of the second bi-annual payment of the indicative guarantee for the City’s borrowings through the WA Treasury Corporation, for the 20/21 financial year, was not received by the end of June, so ended up being processed in July. Depending on whether the final payment is made or accrued in June 2022, this may end up being an overspend variance at the end of the year.
10511	Community Assistance Program (Governance)	-	16,666	16,666	100.0%	-
Timing variances associated with how this line item has been spread. It has been spread monthly however spend will not occur until the end of the financial year. Remaining budget from September to June has been re-allocated to June.
10700	Public Relations	29,561	50,870	21,309	41.9%	(2,117)
Timing variances, up and down, associated with underspend against sister city allocations, community consultations and surveys and catering, and an overspend in council advertising.
*Community and Commercial Services*		*675,013*	*1,994,066*	*1,319,053*	*66.1%*	*285,760*
10532	BPACC Operations	(350)	12,500	12,850	102.8%	-
BPACC operational activity will not commence until such time as the Tender for construction has been awarded and timeframes for delivery of the project are known.
10533	Welfare / Senior Citizens	45,041	21,699	(23,342)	(107.6%)	(22,520)
Budgeted for Quarterly invoices/payments to Busselton Senior Citizens centre as per grant agreement (months 3,6,9,12), planned December payment was made in November as City was invoiced and KPIs were met.
10543	Community Development	9,145	111,925	102,780	91.8%	39,558
This relates to the first three rounds of Community Assistance Program. Round 1 and 2 approvals were combined due to Council elections and round 3 closed on 30 November. From the first 3 rounds $133,873 is committed with actual expenditure to be seen in first quarter of 2022. Timing is largely dependent on CAP Applications received from community groups.

10558	Events	431,339	627,734	196,395	31.3%	74,109
There have been 3 funded events (Pedal Prix WA, SW Mudfest, Cape Naturaliste Pro) cancel for a total of $38k. We are also waiting on a number of events to invoice us for event sponsorships. Also, as the timing of Events budget expenditure is estimated prior to the actual allocation of sponsorship, it is impossible to know exactly when the expenditure will occur. With the allocation of the remaining events sponsorship budget due to go to Council in December, we will have a clearer picture of how the budget will be expended.
10634	Business Support Program	-	23,850	23,850	100.0%	-
Final acquittals of the support program yet to be received. This budget was carried over from the 20/21 financial year, funded from the MERG Reserve, however it has now been ascertained that only approximately $10,000 will be required. This will more than likely be the positive variance by the end of the year, offset by a lower transfer from the reserve.
11151	Airport Operations	-	958,880	958,880	100.0%	191,676
Marketing activities continue to be delayed due to the postponement of Jetstar RPT services as a result of COVID restrictions/lockdowns etc. in the Eastern States.
11156	Airport Development Operations	115,139	148,550	33,411	22.5%	-
At the time of setting the budget the timing for the final carried over payments related to a noise mitigation project were not known. $148K is estimated to be remaining in total, split over three payments, however we have not received practical completion on the works, and there are still some outstanding works in progress.

5. Non-Operating Grants, Subsidies & Contributions

The negative variance of $5.3M is mainly due to the items in the table below. It should be noted that any negative variance in this area will approximately correlate to an offsetting positive underspend variance in a capital project tied to these funding sources. This can be seen in the section below that outlines the capital expenditure variances. Where this is not the case, the reconciliation of the projects and the required funding to be recognised in revenue is not completed until closer to year end.

Revenue Code	Revenue Code Description	Actual YTD $	Amended Budget YTD $	Variance YTD $	Variance YTD %	Change in Variance Current Month $
*Finance and Corporate Services*		*57,000*	*5,000*	*52,000*	*1040.0%*	*52,000*
R0288	Locke Estate – Contributions	57,000	5,000	52,000	1040.0%	52,000
*Community and Commercial Services*		-	*66,401*	*(66,401)*	*(100.0%)*	-
10540	Recreation Administration	-	25,625	(25,625)	(100.0%)	-
10590	Naturaliste Community Centre	-	23,350	(23,350)	(100.0%)	-
C6010	Airport Fencing Works	-	17,426	(17,426)	(100.0%)	-

*Engineering and Works Services*		*765,048*	*6,074,079*	*(5,309,031)*	*(87.4%)*	*36,818*
A0014	Bussell Highway Bridge – 0241 – Federal Capital Grant	-	744,000	(744,000)	(100.0%)	-
A0022	Yallingup Beach Road Bridge - 3347 – Federal Capital Grant	-	700,000	(700,000)	(100.0%)	-
A0200	Donated Bridges	698,230	-	698,230	100.0%	-
B9407	Busselton Senior Citizens – Developer Cont. Utilised	-	111,750	(111,750)	(100.0%)	-
B9591	Performing Arts Convention Centre – Federal Capital Grant	-	2,277,000	(2,277,000)	(100.0%)	-
B9999	Donated Buildings	30,000	-	30,000	100.0%	-
F0084	Thompson Way - New Path - Contributions	36,818	-	36,818	100.0%	36,818
F0112	Causeway Road Shared Path – State Capital Grant	-	80,000	(80,000)	(100.0%)	-
S0048	Bussell Highway – Developer Cont. Utilised	-	200,000	(200,000)	(100.0%)	-
S0076	Kaloorup Road (Stage 1) – Main Roads Direct Grant	-	224,400	(224,400)	(100.0%)	-
S0077	Ludlow-Hithergreen Stage 2 Reconstruct & Widen – MR Capital Grant	-	96,000	(96,000)	(100.0%)	-
S0078	Sugarloaf Road – State Capital Grant	-	321,599	(321,599)	(100.0%)	-
S0321	Yoongarillup Road - Second Coat Seal – MR Capital Grant	-	100,000	(100,000)	(100.0%)	-
S0331	Barracks Drive Spray Seal – MR Capital Grant	-	130,980	(130,980)	(100.0%)	-
S0332	Inlet Drive Spray Seal – MR Capital Grant	-	47,000	(47,000)	(100.0%)	-
S0333	Chapman Crescent Spray Seal – MR Capital Grant	-	78,000	(78,000)	(100.0%)	-
S0334	Chapman Hill Road – MR Capital Grant	-	374,000	(374,000)	(100.0%)	-
S0335	Kaloorup Road – MR Capital Grant	-	120,475	(120,475)	(100.0%)	-
S0336	Wildwood Road – MR Capital Grant	-	468,875	(468,875)	(100.0%)	-

6. Capital Expenditure

As at 30^th November 2021, there is an underspend variance of 76.1%, or $17.9M, in total capital expenditure, with YTD actual at $5.6M against the YTD budget of $23.6M. A large 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 and Restricted Assets 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*		*3,671*	*20,835*	*17,164*		*82.4%*	*3,095*
10610	Property Services Administration	3,671	20,835	17,164		82.4%	3,095
This is a contingency fund for costs associated with land acquisition or disposal under the LTFP, such as advertising costs in relation to the proposed disposition of freehold land holdings at Ambergate.
*Buildings*		*408,843*	*8,721,607*	*8,312,764*		*95.3%*	*1,408,489*
B9614	Dunsborough Lakes Sporting Precinct-Pavilion /Changeroom Facilities	-	75,000	75,000		100.0%	-
There has been nil expenditure to date as the works have not yet commenced. The contract for Pavilion / Changeroom design was to be awarded in September 2021, with construction estimated to commence in April 2022.
B9012	Civic and Administration Building Replacement of Cladding	466	20,000	19,534		97.7%	20,013
Cladding replacement commencing in January 2022.
B9300/1/2	Aged Housing Capital Improvements	29,689	105,150	75,461		71.8%	(19,969)
Budgeted works were proposed to separate the power and drainage that service 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. A purchase order has been raised for the preparation of an application to Western Power for an alternative power separation proposal and the contractor will report back once Western Power have responded. The decision on which option to pursue cannot be made until this is received.
B9407	Busselton Senior Citizens	40,815	111,750	70,935		63.5%	-
Works have been completed, however supplier invoicing has not yet been fully received and processed.
B9591	Performing Arts Convention Centre	16,946	7,675,743	7,658,797		99.8%	1,530,148
The contract has been awarded to Broad Constructions with works commencing in early January.
B9596	GLC Building Improvements	53,519	71,284		17,765	24.9%	(17,550)
Proposed project for stadium ventilation has been put on hold, pending a review of capital projects.
B9605	Energy Efficiency Initiatives (Various Buildings)	86,013	111,580		25,567	22.9%	-
Works planned for commencement have encountered delays pending Western Power applications and approvals.
B9611	Smiths Beach New Public Toilet	-	250,000		250,000	100.0%	-
Project commencement was delayed due to changes to the project scope as a result of potential changes to size of the toilet facilities and investigations into the capacity of the existing septic system/upgrade to an ATU system to accommodate these changes. Project planning is now underway, with preliminary design work completed. Septic system design work is also underway. Notification has been received by the entity that currently supplies the water that they are no longer able to supply water for City toilets. As such an MOU is being reviewed by the property team to establish viability of infrastructure works and costs for water supply. A clearing permit application is also underway, however all other activity on the project has been put on hold until these issues are resolved.
B9612	Churchill Park Renew Sports Lights	73,562	212,850		139,288	65.4%	(66,402)
Works were planned to take place in July 2021, however due to a budget increase of $73K from CSRFF grant funding, the project was re-scoped. RFQ’s have gone out, with design works expected to commence in November. Actual works will not commence until after trotting season, sometime in February or March 2022.
B9615	Naturaliste Community Centre AMP	-	14,400		14,400	100.0%	14,400
Works are delayed due to market pressures – demand for trades and materials is outstripping supply.
B9616	Buildings Asset Management Plan High Use Allocation	36,907	-		(36,907)	(100.0%)	(2,985)
21/22 expenditure budgeted to occur December – April, however urgent unplanned works have incurred expenditure earlier in the Financial Year. Majority of the cost is attributed to the replacement of the Old Fire Station doors, which were planned to commence January 2022 but brought forward to a change in contractor availability. Variance due to timing of works.
B9622	Dunsborough Youth Centre Building Construction	43,274	-		(43,274)	(100.0%)	(42,670)
This variance is mainly due to the recognition of a donated mobile building worth $30K.
B9711	Busselton Airport – Building	-	12,200		12,200	100.0%	-
Small capital works projects that were planned to be completed prior to Jetstar flights commencing. These have been delayed due to the continuing deferment of the commencement of RPT flights.
B9717	Airport Construction - Existing Terminal Upgrade	-	39,650		39,650	100.0%	-
Invoicing in relation to the retention monies owing to Pindan for works completed has not yet been received.

*Plant & Equipment*		*574,245*	*408,000*	*(166,245)*	*(40.7%)*	*(11,967)*
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.
10380	Busselton Library	31,805	-	(31,805)	(100.0%)	(31,805)
The library vehicle was acquired a month earlier than budgeted.
10540	Recreation Administration	-	40,000	40,000	100.0%	-
The budget relates to a vehicle for the recently created Manager position. Vehicle has been ordered, delivery due in February.
10610	Property Services Administration	-	35,000	35,000	100.0%	-
Vehicle has been ordered, delivery due in February.
10630	Economic and Business Development Administration	-	75,000	75,000	100.0%	35,000
The budget relates to the replacement vehicle for the Manager Economic and Business Development, and the Events Co-Ordinator. Not yet ordered.
10810	Statutory Planning	-	35,000	35,000	100.0%	-
Vehicle has been ordered, delivery due in February.
10920	Environmental Health Services Administration	-	40,000	40,000	100.0%	-
The budget relates to the replacement vehicle for the Manager Regulatory Services. Not yet ordered.
11000	Engineering & Works Services Support	50,332	-	(50,332)	(100.0%)	(50,332)
The director’s replacement vehicle was acquired a month earlier than budgeted.
11107	Engineering Services Design	-	70,000	70,000	100.0%	-
Limited informal quotations were received for new survey equipment, which has delayed commencement of the procurement process. Formal RFQ documentation has been issued, and submissions have been assessed, with procurement planned for Late December.
11401	Transport – Workshop	-	10,000	10,000	100.0%	-
The budget is for a replacement hydraulic press. Specification requirements are being reviewed in light of supply chain issues.
11402	Plant Purchases (P10)	420,639	8,000	(412,639)	(5158.0%)	-
The actual spend relates to a carryover from 2020/21 FY of the second generator for the DWF and a new rubbish truck. The budget timing for this was later in the year. The $8K budget item relates to a trailer, specification has been developed, to be ordered in December and delivery expected in March.

*Furniture & Office Equipment*		*132,389*	*295,950*	*163,561*	*55.3%*	*(48,217)*
10250	Information & Communication Technology Services	87,576	-	(87,576)	(100.0%)	(29,391)
Due to uncertainty around timing at the time of setting the budget, the fully year budget of $441K was split evenly between the December and June months. YTD however, the following items have been acquired which make up the actual variance to budget: · Attain software (for Governance), and the Council Chambers A/V upgrade, which were not budgeted for; · Promapp software (for business process mapping for the whole organisation); · CCTV installations at various foreshore locations; · A4 and A3 scanners in Records.
10558	Events	-	200,000	200,000	100.0%	-
The budget YTD represents the carry-over from the 20/21 year for the electronic billboard. The tender closed with three responses, all of which have come in over the forecast budget. The tender was not awarded and options on how to proceed were discussed with MERG at the November meeting. The tender is to be restructured with options and will be reissued in the new year.
10590	Naturaliste Community Centre	8,826	34,950	26,124	74.7%	(8,826)
The budget represents a carry-over from 20/21 for the purchase of replacement fitness equipment. Procurement of this equipment is now planned for December to February.
10625	Art Geo Administration	10,000	-	(10,000)	(100.0%)	(10,000)
First prize and acquisition of the winner’s piece in the City of Busselton Art Awards was paid a month earlier than budgeted.
10900	Cultural Planning	-	13,400	13,400	100.0%	-
The virtual reality component of the Ballaarat Engine 150^th display has been delayed waiting for an expected grant opportunity to help subsidise the project.
B1350	Churchill Park- Other Buildings	-	26,450	26,450	100.0%	-
The budget relates to the storage facility project. Discussions are still progressing with the Stakeholders, delaying construction until a later date.
*Infrastructure*		*4,503,477*	*14,114,138*	*9,610,661*	*68.1%*	*2,508,835*
Various	Roads	1,386,170	3,607,166	2,220,996	61.6%	154,803
The majority of road construction happens during the months October to April, however in discussions with Council in September/October 2021, it was decided that the current capital works program would be spread over 18 months into the 2022/23 financial year. The purpose being to take pressure off the City’s works staff and their contractors, to enable a catch up on the backlog of projects. 43% of the YTD variance valued at $953k is associated with the Regional Road Safety Program which is providing sealed road shoulders on Wildwood Road (largely complete), Kaloorup Road and Chapman Hill Road. 25% of the YTD variance valued at $563k is associated with the Peel Terrace/ Queen street roundabout renewal works which are scheduled to commence in February. 21% of the YTD variance valued at $461k is associated with; · Sugarloaf Road upgrade – rescheduled to 2022/23 financial year · Bussell Highway

Various	Bridges	-	1,444,000	1,444,000	100.0%	698,230
Major bridge works are completed by Main Roads, with financial recognition of works often not occurring until late in the financial year. To date works have been completed on the Bussell Highway bridge #241 and the Yallingup Beach Road bridge #3347. Tuart Drive bridge #0238 is in progress and is scheduled for completion in March 2022. Other major bridge works are currently out for tender by Main Roads with works possibly to be undertaken towards the end of summer 2022, subject to contractor and material availability. The City has limited control over Main Roads scheduling and it is often the case that some Bridge projects are rescheduled into the following year based on capacity. This variance is anticipated to continue to increase until invoices for works are provided by Main Roads.
Various	Car Parks	313,847	1,232,175	918,328	74.5%	143,011
73% of the YTD variance valued at $666k is associated with the Dunsborough Lakes Sporting Precinct (Stage 1) – Car parking project. This project is not scheduled to commence until the new calendar year. 24% of the YTD variance valued at $218k is associated with; · Barnard Park East Foreshore Car Parking – in progress · Dunsborough Chieftain Crescent Carpark Extension - placed on hold · Forth Street Groyne Carpark – placed on hold
Various	Footpaths & Cycleways	442,256	798,044	355,788	44.6%	98,566
41% of the YTD variance valued at $146K is associated with the Buayanup Drain Shared path project that has now been completed. Not all the budget will be expended as the value of the project was reduced towards the end of last financial year, however the amount carried over was not adjusted based on the reduced estimate. This variance will remain unless the budget is reduced formally via a budget amendment. 39% of the YTD variance valued at $138K is associated with; · Barnard East Development and Busselton Foreshore Improvements – in progress · Carey Street footpath - scheduled for construction during February and March
Parks, Gardens & Reserves		2,281,983	6,867,502	4,585,519	66.8%	1,509,994
Various	Busselton Jetty - Capital Expenditure	31,072	272,524	241,452	88.6%	(10,946)
Major Maintenance works are scheduled to take place on the Jetty between late October and March, when sea conditions are most conducive. The timing of major works on the Jetty can be quite variable based on the nature of tasks planned to be undertaken, the weather and working around the peak tourist seasons.
Various	Coastal & Boating	77,516	1,075,900	998,384	92.8%	586,941
Planning and procurement for Coastal related works continue to progress. The majority of works will commence in the new calendar year.
Various	Waste Services	107,678	602,500	494,822	82.1%	7,544
The majority of this variance is associated with budgets that were carried over from the previous year. 51% of the variance representing $250K is associated with Stage 1 Busselton Landfill Post-closure Capping, Rehab & Remediation works that are not as yet planned to go ahead this financial year. $82K of the YTD variance is with respect to works on a Depot Washdown Facility Upgrade that remains in the planning phase.
Various	Townscape & Vasse River	8,871	169,782	160,911	94.8%	133,378
No works of any significance associated with projects within this category have yet to commence. The YTD variance is considered minor in comparison to the $1.779M on works that are on budget.

Various	Other P&G Infrastructure	2,056,845	4,746,796	2,689,951	56.7%	793,077
90% of the YTD variance to budget is associated with the follow projects, all of which are in progress; · Barnard Park East Foreshore Development · Dunsborough Lakes Sporting Precinct · Dunsborough Non-Potable Water Network · WAPC POS Upgrades · Eagle Bay Viewing Platform
Various	Drainage	12,849	35,200	22,351	63.5%	23,571
The YTD variance to budget is largely associated with the Carey Street drainage upgrade project which is scheduled for construction during February and March.
Various	Regional Airport & Industrial Park Infrastructure	66,372	130,051	63,679	49.0%	(119,339)
YTD actual is made up of four separate account strings all part of the Airport development project. Some are completed (underspent) and others may not be spent until the end of the FY depending on timing of the works.

7. Proceeds From Sale of Assets

YTD there have been no proceeds from sale of assets recorded against the YTD budget of $195K. This is due to the continuing delays in delivery of acquisitions, and the associated transfer to auction of the vehicles being replaced. Some vehicles that were planned to be traded/auctioned have also been retained and redeployed instead.

8. Total Loan Repayments - Principal

Repayments of the principal on loans is $141K under budget YTD, due to the loan for the BPACC not proceeding in timeframe as budgeted.

9. Transfer to Restricted Assets

There is a YTD variance in transfers to Restricted Assets of $5.4M as there is no budget for this item.

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 (or unspent portions thereof). The following grants, totaling $4M, have been received and transferred to Restricted Assets for which there was no budgeted transfer:

· $50K for the Causeway Road Shared Path Project from the Department of Transport;

· $2.25M for various roads projects from Main Roads, State Blackspot Fund, the Regional Roads Program and the Road Safety Innovation Fund;

· $80K for the Dunsborough youth space project from the Department of Primary Industries and Regional Development;

· $54K from Lotterywest for the Strengthening & Adapting Organisations program;

· $526K from DFES for the Mitigation Activity Fund and shared costs of the Emergency Services Manager;

· $30K from the Federal Government Community Grants Hub for Community Child Care Sustainability programs;

· $11K from the South West Catchment Council - National Landcare Program for the planting of 4,000 seedlings;

· $20K from Australia’s South West to fund an aviation research report for the Recovery for Regional Tourism Project Control Group;

· $100K from the Department of Primary Industries & Regional Development for the expansion of the CCTV network;

· $20K from Rio Tinto for Youth Development Services;

· $4.9K from the Busselton Senior Citizens to go towards the expansion project;

· $137K from the Department of Industry, Science, Energy and Resources for improvements to safety and accessibility at the airport;

· $100K from the Southwest Development Corporation do develop a training and marketing campaign to build a pool of skilled hospitality workers in the region;

· $130K from the Department of Primary Industries & Regional Development’s Community Stewardship Program, for the removal of sediment in the lower Vasse river;

· $250K from Rio Tinto for the BPACC project; and

· $30K from the Department of Primary Industries & Regional Development’s Small Grants Program 2021 for the upgrade of the women’s change rooms at Bovell Sports Park.

Developer contributions, deposits and bonds are inherently hard to predict and budget for. An annual amount of $22K was budgeted for later in the year, however $1.4M has been received YTD, with $329K for road works bonds and $508K for caravan park deposits.

10. Transfer from Restricted Assets

YTD there has been $2M transferred from Restricted Assets into the Municipal Account. This was mainly attributable to $605K of Bushfire Mitigation Activity funds that did not need to be restricted, $200K from Department of Primary Industries & Regional Development used for CCTV expansion and training of hospitality workers, and $579K of various roadworks grant & bond funding that has been utilised.

Investment Report

Pursuant to the Council’s Investment Policy, a report is to be provided to the Council on a monthly basis, detailing the investment portfolio in terms of performance and counterparty percentage exposure of total portfolio. The report is also to provide details of investment income earned against budget, whilst confirming compliance of the portfolio with legislative and policy limits.

As at 30^th November 2021 the value of the City’s invested funds remained at $94.4M, unchanged from $94.4M as at 31^st October 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) remains at $6.5M.

During the month of November three term deposits totalling the amount of $9M matured. These were renewed for a further 167 days at 0.33% on average.

The official cash rate remains steady for the month of November at 0.10%. This will continue to have an impact on the City’s interest earnings for the foreseeable future.

Borrowings Update

During the month there were no new loans entered into or drawn down. The attached Loan Schedule outlines the status of all existing loans as at November YTD.

Chief Executive Officer – Corporate Credit Card

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

Date		Payee	Description	$ Amount
28/10/21	GANNAWAYS		BUS TICKET FOR BCCI GALA NIGHT - MAYOR G.HENLEY		$25.00
29/10/21	THE GOOD EGG		CEO/MAYOR CATCH UP WITH CITY OF BUNBURY		$76.50
02/11/21	CROWN PERTH		LG PRO CONFERENCE – REFRESHMENTS*		$38.00
02/11/21	CROWN METROPOL		LG PRO CONFERENCE ACCOMODATION –CEO M. ARCHER*		$495.88
4/11/21	CROWN METROPOL		LG PRO CONFERENCE INCIDENTALS & MEALS – CEO M.ARCHER*		$193.29
11/11/21	TUDOR HOUSE		AUSTRALIAN FLAGS FOR COUNCIL CHAMBERS		$385.00
12/11/21	ADINA HOTEL		NEW COUNCILLORS SEMINAR ACCOMMODATION – CR M. LOVE		$191.47
12/11/21	ADINA HOTEL		NEW COUNCILLORS SEMINAR ACCOMMODATION – CR J. RICHARDS		$191.47
			TOTAL		$1,211.61

* Funding from CEO’s professional development allowance under contract.

Donations & Contributions Received

During the month no donations or contributions were received.

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

As at 30 November 2021, the City’s net current position stands at $34.1M. The City’s financial performance is considered satisfactory, and cash reserves remain strong.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.

Supplementary Items 55 25 January 2022

12.5 Finance Committee - 19/1/2022 - RATING DEBT COLLECTION

STRATEGIC THEME	LEADERSHIP - A Council that connects with the community and is accountable in its decision making.
STRATEGIC PRIORITY	4.5 Responsibly manage ratepayer funds to provide for community needs now and in the future.
SUBJECT INDEX	Rating Debt Collection
BUSINESS UNIT	Finance and Corporate Services
REPORTING OFFICER	Rates Coordinator - David Nicholson
AUTHORISING OFFICER	Acting Director, Finance and Corporate Services - Sarah Pierson
NATURE OF DECISION	Noting: The item is simply for information purposes and noting
VOTING REQUIREMENT	Simple Majority
ATTACHMENTS	Nil

This item was considered by the Finance Committee at its meeting on 19/1/2022, the recommendations from which have been included in this report.

COMMITTEE RECOMMENDATION

That the Council notes the information contained in this report.

OFFICER RECOMMENDATION

That the Council notes the information contained in this report.

EXECUTIVE SUMMARY

This report is to provide Council with information on the total rating debts currently owed and the existing and proposed procedures so as to recover these debts.

BACKGROUND

In the past debt collection, in particular collection via the Court or under provisions of the Local Government Act 1995 (the Act), has been sparingly undertaken, and particularly in recent times given the City’s Covid Financial Hardship position. This has resulted in a number of rateable properties now having rating debts of three or more financial years. As at the 9^th December 2021 there were 1,541 properties that owed $3,768,978 in rating arrears and/or overdue 2021/22 rating balances (NOTE: This excludes properties that have elected to pay via an allowed payment option).

The City has commenced a rating review program the primary of which is in relation to fairness and equity of our rating processes throughout the District. As a part of this review officers have identified the need to more proactively utilise available recovery means to recover outstanding debts. It is therefore intended in this financial year to recover these rating debts through Court proceedings and / or provisions of the Act.

OFFICER COMMENT

Under section 6.56 of the Act, unpaid rates and service charges may be recovered, as well as costs, in a court of competent jurisdiction. Additional unpaid charges may be recovered by garnisheeing a property’s rental under section 6.60 of the Act. If neither of these recovery proceedings are possible due to there being a reasonable belief that recovery costs will equal or exceed the value of the land or, after making reasonable efforts, the owner cannot be located, then recovery can be under section 6.64 of the LGA where there is 3 full years of unpaid rates.

Supplementary Items		9		25 January 2022
12.3	Attachment a		List of Payments - November 2021

Supplementary Items		40		25 January 2022
12.4	Attachment a		Loan Schedule - November 2021