Finance Committee Agenda

 

 

 

9 February 2022

 

 

 

 

 


ALL INFORMATION AVAILABLE IN VARIOUS FORMATS ON REQUEST

city@busselton.wa.gov.au

 

 


CITY OF BUSSELTON

MEETING NOTICE AND AGENDA – 9 February 2022

 

 

 

TO:                  THE MAYOR AND COUNCILLORS

 

 

NOTICE is given that a meeting of the Finance Committee will be held in the Committee Room, Administration Building, Southern Drive, Busselton on Wednesday, 9 February 2022, commencing at 10.00am.

 

The attendance of Committee Members is respectfully requested.

 

 

DISCLAIMER

Statements or decisions made at Council meetings or briefings should not be relied on (or acted upon) by an applicant or any other person or entity until subsequent written notification has been given by or received from the City of Busselton. Without derogating from the generality of the above, approval of planning applications and building permits and acceptance of tenders and quotations will only become effective once written notice to that effect has been given to relevant parties. The City of Busselton expressly disclaims any liability for any loss arising from any person or body relying on any statement or decision made during a Council meeting or briefing.

 

 

 

Mike Archer

 

CHIEF EXECUTIVE OFFICER

 

3 February 2022


CITY OF BUSSELTON

Agenda FOR THE Finance Committee MEETING TO BE HELD ON 9 February 2022

TABLE OF CONTENTS

 

ITEM NO.                                        SUBJECT                                                                                                                              PAGE NO.

1....... Declaration of Opening, ACKNOWLEDGEMENT OF COUNTRY and Announcement of Visitors. 4

2....... Attendance. 4

3....... Public Question Time. 4

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

5....... Confirmation Of Minutes. 4

5.1          Minutes of the Finance Committee Meeting held 19 January 2022. 4

6....... Reports. 5

6.1          LIST OF PAYMENTS MADE - DECEMBER 2021. 5

6.2          FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 31 DECEMBER 2021. 15

7....... General Discussion Items. 49

8....... Next Meeting Date. 49

9....... Closure. 49

 


Finance Committee                                                             4                                                                  9 February 2022

 

1.               Declaration of Opening, ACKNOWLEDGEMENT OF COUNTRY and Announcement of Visitors

 

2.               Attendance 

Apologies

 

3.               Public Question Time

 

4.               Disclosure Of Interests

 

5.               Confirmation Of Minutes

5.1             Minutes of the Finance Committee Meeting held 19 January 2022

Recommendation

That the Minutes of the Finance Committee Meeting held 19 January 2022 be confirmed as a true and correct record.

 


Finance Committee                                                             5                                                                  9 February 2022

6.               Reports

6.1             LIST OF PAYMENTS MADE - DECEMBER 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

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 - December 2021  

 

OFFICER RECOMMENDATION

That the Council notes payment of voucher numbers M119051 – M119120, EF083913 – EF084495, T7581 – T7583, DD004694 – DD004726, as well as payroll payments, together totalling $9,864,944.02

 

EXECUTIVE SUMMARY

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

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.


Finance Committee

14

9 February 2022

6.1

Attachment a

List of Payments - December 2021

 









Finance Committee                                                             34                                                                9 February 2022

6.2             FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 31 DECEMBER 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

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   Investment Report - December 2021

Attachment b    Loan Schedule - December 2021

Attachment c    Financial Activity Statement - December 2021  

 

OFFICER RECOMMENDATION

That the Council receives the statutory financial activity statement reports for the period ending 31 December 2021, pursuant to Regulation 34(4) of the Local Government (Financial Management) Regulations 1996.

 

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 December 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 31 December 2021

The Statement of Financial Activity (FAS) for the year to date (YTD) shows an overall Net Current Position of $25.1M as opposed to the budget of $8.2M. This represents a positive variance of $16.9M 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

 

1.35%

942,012

123,560

1.    Other Revenue

355,662

173,677

414,950

104.78%

181,985

(50,848)

Expenses from Ordinary Activities

 

9.68%

4,256,390

457,990

2.    Materials & Contracts

(7,556,019)

(9,314,319)

(20,245,296)

18.88%

1,758,300

442,163

3.    Utilities

(1,103,808)

(1,262,415)

(2,774,773)

12.56%

158,607

48,912

4.    Other Expenditure

(1,624,424)

(3,279,641)

(9,685,100)

50.47%

1,655,217

252,687

5.    Non-Operating Grants, Subsidies and Contributions

822,048

8,425,155

34,850,687

(90.24%)

(7,603,107)

(2,279,675)

Capital Revenue & (Expenditure)

 

40.50%

16,522,641

2,128,430

6.    Land & Buildings

(558,928)

(10,761,885)

(22,802,632)

94.81%

10,202,957

1,873,523

Plant & Equipment

(577,445)

(1,291,000)

(2,890,000)

55.27%

713,555

879,800

Furniture & Equipment

(147,665)

(549,191)

(828,800)

73.11%

401,526

211,515

Infrastructure

(7,758,393)

(17,917,605)

(38,537,750)

56.70%

10,159,212

582,799

7.    Proceeds from Sale of Assets

0

407,627

776,071

(100.00%)

(407,627)

(212,532)

8.    Proceeds from New Loans

25,000

0

15,450,000

100.00%

25,000

25,000

9.   Total Loan Repayments – Principal

(1,493,816)

(1,751,889)

(3,839,418)

14.73%

258,073

116,749

10.  Advances to Community Groups

(25,000)

0

(5,450,000)

(100.00%)

(25,000)

(25,000)

11.  Transfer to Restricted Assets

(6,974,494)

0

(21,740)

(100.00%)

(6,974,494)

(1,580,263)

12.  Transfer from Restricted Assets

2,657,233

0

1,735,682

100.00%

2,657,233

637,191

13.  Transfer from Reserves

1,852,060

2,326,832

39,544,446

(20.40%)

(474,772)

(474,772)


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 $182K, or 104.8%, 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

48,181

15,931

32,250

202.43%

2,795

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.

Community and Commercial Services

24,405

2,385

22,020

923.26%

28,715

10625

Art Geo – Sale of Artworks

17,726

 -

17,726

(100.00%)

17,726

This line is cleared out by year end i.e. sales proceeds are on-paid to the artists.  There was a delay in on-paying December’s sales due to Art Geo Administration moving premises, plus staff being on leave.

Engineering and Works Services

223,023

89,437

133,586

149.36%

(81,675)

G0030 & G0031

Busselton & Dunsborough  Transfer Station – Sale of Scrap Materials

219,088

86,701

132,387

152.69%

(80,500)

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 differences).

 


Expenses from Ordinary Activities

Expenditure from ordinary activities is $4.3M, or 9.7%, less than expected when compared to the budget YTD as at December. 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 $1.76M.  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

808,472

1,142,027

333,555

29.2%

(95,386)

10000

Members of Council

93,816

64,042

(29,774)

(46.5%)

(80,867)

Overspend YTD is due mainly to a catch up in the monthly allocation of prepaid memberships and registrations for such things as WA Regional Councils Alliance, that were held back and paid later than expected.  There was also an undetected system issue that prevented the November allocation from being processed until December.

10105

Business Systems Improvement Team

 -

15,876

15,876

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

118,463

148,353

29,890

20.1%

6,419

Variation between YTD actual and budget is mainly due to:

·        Postage $15.8K under budget due to 2nd instalment notice postage invoice having not been processed plus cost savings by using a new printing service for final and reminder notices

·        Bank charges $26.2K under budget as the charges have come a lot less than expected.

·        Legal expenses $22.1K over budget due to a substantial increase in debt recovery proceedings. This expenditure is fully recovered from the property owner/s.

·        Consultancy $8.4K 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

18,874

51,417

32,543

63.3%

5,611

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

420,560

510,502

89,942

17.6%

(72,968)

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

16,901

61,572

44,671

72.6%

4,423

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

16,374

58,062

41,688

71.8%

6,725

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

30,709

84,596

53,887

63.7%

9,787

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.

R0305

Creekview Road Reserve 12492 (Lot 501)

 -

14,276

14,276

100.0%

6,546

Due to a controlled burn, certain activities such as targeted flora and fauna surveys have not been able to be conducted.  Alternative animal monitoring and habitat surveys are now planned to be undertaken by the end of the financial year, however there still should be an overall underspend of approximately $7K.

Community and Commercial Services

672,397

1,370,917

698,520

51.0%

230,637

10380 & 10381

Busselton & Dunsborough Libraries

51,942

108,663

56,721

52.2%

8,297

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

(155)

51,659

51,814

100.3%

23,376

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%

 -

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.

10590

Naturaliste Community Centre

23,182

39,883

16,701

41.9%

11,125

Invoice timing for consumables and program delivery.  Current commitments of 10k offset the majority of variance to date.

10600

Busselton Jetty Tourist Park

220,432

299,005

78,573

26.3%

19,381

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

38,775

53,501

14,726

27.5%

4,584

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

19,294

93,300

74,006

79.3%

61,017

The majority of this spend is allocated in Consultancy and with ED team not resourced at this time, tasks involving the engagement of consultants have been deferred to 2022.

10900

Cultural Planning

8,217

22,084

13,867

62.8%

14

Awaiting confirmation of further grant monies before engagement of consultants.

11151

Airport Operations

95,877

393,771

297,894

75.7%

87,222

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)

19,309

43,485

24,176

55.6%

(311)

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

413,073

355,391

(57,682)

(16.2%)

48,681

10805

Planning Administration

5,707

20,970

15,263

72.8%

1,701

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

36,719

78,806

42,087

53.4%

6,886

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.    

10925

Preventative Services - CLAG

79,200

59,900

(19,300)

(32.2%)

(5,490)

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

160,389

29,648

(130,741)

(441.0%)

13,416

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

34,870

18,996

(15,874)

(83.6%)

(669)

In preparing for the fire season a large amount of PPE has been purchased in readiness for dispersal to BFB as required.  This occurred earlier than historical budget trends. 


 

Engineering and Works Services

5,661,760

6,442,829

781,069

12.1%

257,971

10830

Environmental Management Administration

147,535

219,544

72,009

32.8%

88,499

Due to the restructure in this area there are numerous activities that have not commenced in the timeframe as planned.

11170

Meelup Regional Park

40,135

140,418

100,283

71.4%

17,400

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

147,523

187,504

39,981

21.3%

10,694

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

174,956

450,914

275,958

61.2%

(1,797)

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 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

91,150

125,077

33,927

27.1%

(53,145)

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 in the YTD variance ($53K reduction in December) is expected to continue in the coming months.

Various

Waste Services

1,064,877

1,342,931

278,054

20.7%

76,452

$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

598,389

445,539

(152,850)

(34.3%)

39,667

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

894,898

1,059,891

164,993

15.6%

65,032

Underspend on reserves is linked to a number of cost codes including R0310 Eastern Link Landscape areas (project recently completed and maintenance only just commencing), R0315 Vasse Village Centre (which has only recently 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).


 

Various

Other Infrastructure Maintenance

1,062,577

1,308,050

245,474

18.8%

166,448

The underspend is mainly attributable to:

·    Consultant/contractors in Engineering, Operations & Waste Services Administration - $103K;

·    Street Lighting Maintenance (including LED’s and rural intersections) - $108K;

·    CBD area maintenance in both Busselton & Dunsborough - $25K;

·    Noxious Weeds & Pest treatments in POS and reserves - $35K

 

3.      Utilities

         Underspent compared to budget YTD December by $159K, or 12.6%, due to:

Natural Account

YTD Budget

YTD Actual

Variance 

Comments

3500 - Electricity

819,612

807,869

11,743

The actual billing cycle is out of sync with how the budget timing was set.  It is unlikely that there will be a significant cost savings by year end against budget.

3505 - Gas - Reticulated

2,449

928

1,521

Immaterial

3506 - Gas - LPG Bottled

8,283

11,571

(3,288)

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)

1,894

1,367

527

Immaterial

3510 - Water Consumption

123,003

50,912

72,091

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.  There is also approximately $25K in refunds due to overcharges on our billings from Water Corp.

3511 - Water Meter Rental & Supply Charge

27,502

32,502

(5,000)

Charge for Airport accounts for $3200 of the $5000 variance – generally there are variances across the board.

3512 - Water Rates

0

0

0

N/A

3513 - Sewerage Volume Charges

30,674

11,104

19,570

Budget included $5.9K for the Goose – no charge recorded as it has burnt down and is not operating.

3514 - Sewerage Charge (Rates)

89,394

52,907

36,487

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

48,242

45,645

2,597

Recently the City has been migrating to better and cheaper fixed line services.  This is starting to show cost savings.


 

3521 - Public WIFI

19,848

23,599

(3,751)

The budget was requested for YCAB and Foreshore only, however, the libraries, admin building and NCC, who have this facility, were mistakenly omitted from initial budget considerations.

3522 - Mobile Devices Costs

49,730

26,637

23,093

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

41,784

38,766

3,018

Similar reason to the above commentary in fixed line and mobiles.

1,262,415

1,103,808

158,607

 

4.      Other Expenditure  

$1.7M, or 50.5%, under the budget YTD. The main contributing items are listed below:

Cost Code

Cost Code Description

Actual YTD

$

Amended Budget YTD

$

Variance
YTD
$

Variance
YTD
%

Change in Variance Current Month

$

Community and Commercial Services

761,718

2,381,337

1,619,619

68.0%

300,565

10532

BPACC Operations

(350)

25,000

25,350

101.4%

12,500

BPACC operational activity will not commence until 2023.

10543

Community Development

54,509

112,950

58,441

51.7%

(44,339)

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

453,210

727,465

274,255

37.7%

77,860

We are waiting on a number of events to invoice us for event sponsorships. 

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.

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

84

1,150,556

1,150,472

100.0%

191,592

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 $7.6M 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

$

Community and Commercial Services

 -

115,376

(115,376)

(100.0%)

(48,975)

10540

Recreation Administration

 -

51,250

(51,250)

(100.0%)

(25,625)

10590

Naturaliste Community Centre

 -

46,700

(46,700)

(100.0%)

(23,350)

C6010

Airport Fencing Works

 -

17,426

(17,426)

(100.0%)

 -

Engineering and Works Services

765,048

8,248,779

(7,483,731)

(90.7%)

(2,174,700)

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

 -

3,415,500

(3,415,500)

(100.0%)

(1,138,500)

B9612

Churchill Park Renew Sports Lights –

State Capital Grant

 -

72,850

(72,850)

(100.0%)

(72,850)

B9999

Donated Buildings

30,000

 -

30,000

100.0%

 -

F0084

Thompson Way - New Path - Contributions

36,818

 -

36,818

100.0%

 -

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

 -

748,000

(748,000)

(100.0%)

(374,000)

S0335

Kaloorup Road – MR Capital Grant

 -

240,950

(240,950)

(100.0%)

(120,475)

S0336

Wildwood Road – MR Capital Grant

 -

937,750

(937,750)

(100.0%)

(468,875)

 

6.      Capital Expenditure  

As at 31st December 2021, there is an underspend variance of 70.4%, or $21.5M, in total capital expenditure, with YTD actual at $9M against the YTD budget of $30.5M. 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

2,599

25,002

22,403

89.6%

5,239

10610

Property Services Administration

2,599

25,002

22,403

89.6%

5,239

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

556,330

10,736,883

10,180,553

94.8%

1,868,285

B9614

Dunsborough Lakes Sporting Precinct-Pavilion /Changeroom Facilities

10,425

75,000

64,575

86.1%

(10,425)

There has been minimal expenditure to date as works have not yet commenced. The design is currently under review to achieve budget alignment.  A Council briefing scheduled in February to review and discuss.

B9012

Civic and Administration Building Replacement of Cladding

1,004

40,000

38,996

97.5%

19,461

Cladding replacement commencing in January 2022.

B9300/1/2

Aged Housing

Capital Improvements

35,250

143,700

108,450

75.5%

32,990

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.


 

B9591

Performing Arts Convention Centre

21,945

9,210,455

9,188,510

99.8%

1,529,713

The contract has been awarded to Broad Constructions with works commencing in late January/early February.

B9596

GLC Building Improvements

67,999

142,568

74,569

52.3%

56,804

Proposed project for stadium ventilation has been put on hold, pending a review of capital projects.

B9605

Energy Efficiency Initiatives (Various Buildings)

90,791

137,910

47,119

34.2%

21,552

Works planned for commencement have encountered delays pending Western Power applications and approvals.

B9610

Old Butter Factory

17,991

4,000

(13,991)

(349.8%)

(15,991)

The YTD overspend is due the retention monies owing to the contractor on final completion, not being fully factored into the carry-over budget requirements for this project.

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%

 -

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.

B9613

GLC CCTV Installation

29,921

 -

(29,921)

(100.0%)

(29,921)

The budgeted works were completed much earlier than originally anticipated.  There will also be a considerable saving against the overall $50K budget.

B9615

Naturaliste Community Centre AMP

(495)

28,800

29,295

101.7%

14,895

Works are delayed due to market pressures – demand for trades and materials is outstripping supply.

B9616

Buildings Asset Management Plan High Use Allocation

52,336

30,000

(22,336)

(74.5%)

14,571

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 due to a change in contractor availability. Variance due to timing of works.

B9617

Buildings AMP Renewal Allocation - Meelup Ablution

7,386

40,000

32,614

81.5%

34,136

The Meelup project is being recommended for deferral due to a mix of unforeseen design complexities, and to allow time to assess the impact of other water saving initiatives at Meelup.  Once analysed, a direction on the final scope of the project can be made.


 

B9622

Dunsborough Youth Centre Building Construction

15,604

 -

(15,604)

(100.0%)

27,670

$15K has been expended earlier than expected on an additional complimentary mobile building (including transport and installation), to the one that was donated to the City.  The total year budget for the project is $80K, so this amount represents a timing variance.

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.

B9720

BMRA Hangars

 -

210,000

210,000

100.0%

210,000

This is a timing issue - the RFT has just closed and will be evaluated and (if) awarded, works should commence by mid-February.

B9808

Busselton Jetty Tourist Park Upgrade

4,314

25,000

20,686

82.7%

25,000

Timing Issue - capital works upgrades that cannot be done until after Easter (the tourist season).

Plant & Equipment

577,445

1,291,000

713,555

55.3%

879,800

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.

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%

 -

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.

11001

Engineering Services Administration

 -

35,000

35,000

100.0%

35,000

Vehicle not yet ordered.

11107

Engineering Services Design

 -

140,000

140,000

100.0%

70,000

Survey equipment and 2 x vehicles ordered, 1 x vehicle delivered in January, survey equipment and 1 x vehicle expected to be delivered in February.


 

11151

Airport Operations

 -

15,000

15,000

100.0%

15,000

Slasher (tractor mounted) not yet ordered.

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.

11404

Plant Purchases (P12)

 -

185,000

185,000

100.0%

185,000

2 x light trucks not yet ordered.

11500

Operations Services Administration

 -

40,000

40,000

100.0%

40,000

Vehicle ordered, not yet delivered.

Furniture & Office Equipment

147,665

549,191

401,526

73.1%

211,515

10250

Information & Communication Technology Services

87,576

220,891

133,315

60.4%

220,891

Underspend is due to not yet ordering ICT asset replacement items. This is due to be ordered in the coming month though actual invoices may not be received for some time due to global supply chain issues.

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

16,326

43,300

26,974

62.3%

850

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%

20,000

The previous spend showing in this line was an incorrect allocation of a different award, and has been moved to the appropriate budget.  The budget now showing is an Art Geo Award that has not as yet been paid.

10900

Cultural Planning

 -

13,400

13,400

100.0%

 -

The virtual reality component of the Ballaarat Engine 150th display has been delayed waiting for an expected grant opportunity to help subsidise the project.

B1000

Administration Building- 2-16 Southern Drive

 -

14,000

14,000

100.0%

14,000

This is a budget timing issue.  Orders have been placed totalling approximately $10.5K, with the remaining $3.5K expected to be spent by EOFY.

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.

B1450

Depot Building-Busselton

17,776

 -

(17,776)

(100.0%)

(17,776)

Expenditure was for 8 sit-to-stand workstations at the depot administration building.  There is no budget in this particular line, however it is offset by considerable savings in other areas, and is funded from the Furniture & Office Equipment Reserve.


 

Infrastructure

7,758,393

17,917,605

10,159,212

56.7%

582,799

Various

Roads

2,763,348

5,288,306

2,524,958

47.7%

293,304

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 extending into the 2022/23 financial year.  Some projects that were to be contracted have been put on hold given the heated state of the economy.

·        27% of the YTD variance valued at $739k is associated with the Regional Road Safety Program which is providing sealed road shoulders on Wildwood Road (now complete), Chapman Hill Road (in progress) and Kaloorup Road.

·        30% of the YTD variance valued at $746k is associated with the Peel Terrace/ Queen street roundabout renewal works which are scheduled to commence in late February.

·        18% of the YTD variance valued at $505k is associated with both the Sugarloaf Road upgrade – rescheduled to 2022/23 financial year and major works on the Bussell Highway that are currently in progress.

·        1000m (SLK 1.50 to 2.50) of Boalia Rd reconstruction has been rescheduled to 2022/23 financial year due to delays in environmental permitting.

Various

Bridges

 -

1,444,000

1,444,000

100.0%

 -

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 will continue to increase until invoices for works are provided by Main Roads.

Various

Car Parks

448,262

1,420,860

972,598

68.5%

99,177

82% of the YTD variance valued at $800k is associated with the Dunsborough Lakes Sporting Precinct (Stage 1) – Car parking project. The tender for these works have been awarded with works to commence henceforth.

The following two projects have been put on hold adding to the YTD variance by the amount provided.

·        Dunsborough Chieftain Crescent Carpark Extension $59.6k

·        Forth Street Groyne Carpark $45.9k

Various

Footpaths & Cycleways

506,348

933,638

427,290

45.8%

71,502

29% of the YTD variance valued at $124K is associated with the Buayanup Drain Shared path project that is complete. 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.

47% of the YTD variance valued at $202K is associated with;

·        $89k being the Barnard East Development which is in progress

·        $58k being continuation of the Busselton CBD Footpath Renewal also in progress

·        $55k Carey Street footpath scheduled for construction during February and March.


 

Parks, Gardens & Reserves

3,946,149

8,552,006

4,605,857

53.9%

20,337

Various

Busselton Jetty - Capital Expenditure

114,465

408,786

294,321

72.0%

52,869

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

80,016

1,136,800

1,056,784

93.0%

58,400

74% of the variance valued at $777k is attributable to both the stage 2 West Busselton & Forth Street seawall works. A report to Council in late January resulted in a decision to only proceed with the West Busselton works at this time.

19% of the variance values at $200k is associated with a Coastal Adaptation project re the Mitigation of Coastal Flooding that is still in its planning phase.

Various

Waste Services

264,329

952,500

688,171

72.2%

193,350

The majority of this variance is associated with budgets that were carried over from the previous year with 43% being the Liquid Waste Pond Renewal, and percentages in the 20s associated with Busselton Landfill Post-Closure Capping , Rehab & Remediation, as well as the Lined Landfill Stage 2. Earthworks on these projects have continued on during the construction period , resulting in expenditure more in-line with the YTD forecast. $82K of the YTD variance is with respect to works on a Depot Washdown Facility Upgrade that remains in the planning phase, as does the $50,000 for Capital site improvements and Regional Waste Hub developments.

Various

Townscape & Vasse River

35,748

315,464

279,716

88.7%

118,805

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

3,451,590

5,738,456

2,286,865

39.9%

(403,086)

There are 45 individual Parks & Gardens capital projects budgeted this financial year ranging in value from between a mere $1.8k to $2.118m.

·        42% of the YTD variance valued at $ 1.447m is associated with the Dunsborough Lakes Sporting Precinct project and the new Non-Potable Water Network.

·        21% of the YTD variance totaling $740k is comprised of a further 12 projects that have a YTD variance in excess of $40k. Most of these projects are underway, have committed costs or are due to commence in the coming months.

Various

Drainage

13,090

70,400

57,310

81.4%

34,960

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

81,197

208,396

127,198

61.0%

63,519

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 $408K. 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.     Proceeds from New Loans

         During the month a Community Group loan was drawn for the Dunsborough Bay Yacht Club for $25K.  At the time of setting the budget, an amount of $200K in total was forecast to be available for self-supporting loans for Community Groups, however it is impossible to predict when and to what extent applications will be submitted to the City.  This is 100% offset by the actual outgoing advance of the funds to the community group.

9.     Total Loan Repayments - Principal

         Repayments of the principal on loans is $258K under budget YTD, due to the loan for the BPACC not proceeding in timeframe as budgeted.

10.   Advances to Community Groups

         During the month a Community Group loan was drawn for the Dunsborough Bay Yacht Club for $25K.  Per above, although not possible to predict when these loans will be applied for, the negative variance is 100% offset by the positive variance in proceeds from New Loans.

11.   Transfer to Restricted Assets  

There is a YTD variance in transfers to Restricted Assets of $7M 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 $6.2, 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;

·    $3M 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;

·    $60K 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;

·    $25K 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;

·    $330K 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;

·    $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;

·    $150K from the WA Waste Authority for the “Tip Shop” development;

·    $30.8K from the Department of Local Government, Sport and Cultural Industries for the “Creative Art for Heart” initiative; and

·    $17.4K from the Department of Transport, from the RADS program, for the perimeter fencing at the airport.

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 $1.5M has been received YTD, including $428K for road works bonds and $530K for caravan park deposits.

12.   Transfer from Restricted Assets

YTD there has been $2.7M 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, $40K from Department of Education & Training for traineeships and $1.9M of various roadworks grant & bond funding that has been utilised.

13.   Transfer from Reserves

The YTD variance of $475K less being transferred from reserve to the municipal account is due to non-completion of certain reserve funded activities.  The main contributor being the Fourth Street Sea Wall project, with those funds to now be directed to a slightly different sea wall project in the same area.

 

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 31st December 2021 the value of the City’s invested funds are $91.9M, down from $94.4M as at 30th November 2021.

 

The decrease is due to a withdrawal of $2.5M from the 11am account (an intermediary account which offers immediate access to the funds compared to the term deposits and a higher rate of return compared to the cheque account) to provide funds for standard operations. 

 

As at 31st December 2021 the 11AM account balance is $4.0M, down from $6.5M as at 30th November 2021 due to the above withdrawal.

 

During the month of December four term deposits totalling the amount of $14M matured. These were renewed for a further 113 days at 0.33% on average.

 

The official cash rate remains steady for the month of December 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 a Community Group loan was drawn for the Dunsborough Bay Yacht Club for $25K.  The attached Loan Schedule outlines the status of all existing loans as at December YTD.

 

Chief Executive Officer – Corporate Credit Card

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

 

Date

Payee

Description

$ Amount

16/12/21

SANCTUARY GOLF RESORT

MEAL -SOUTHWEST CEO MEETING

35.70

21/12/21

ESPLANADE HOTEL, BUSSELTON

SMG CHRISTMAS LUNCH

254.80

 

 

TOTAL

$290.50

 

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

An assessment of the potential implications of implementing the officer recommendation has been undertaken using the City’s risk management framework, with risks assessed taking into account any controls already in place. No risks of a medium or greater level have been identified.

Options

The Statements of Financial Activity are presented in accordance with Section 6.4 of the Act and Regulation 34 of the Regulations and are to be received by Council. Council may wish to make additional resolutions as a result of having received these reports.

CONCLUSION

As at 31 December 2021, the City’s net current position stands at $25.1M. The City’s financial performance is considered satisfactory, and cash reserves remain strong.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.  


Finance Committee

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9 February 2022

6.2

Attachment a

Investment Report - December 2021

 


Finance Committee

36

9 February 2022

6.2

Attachment b

Loan Schedule - December 2021

 


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9 February 2022

6.2

Attachment c

Financial Activity Statement - December 2021

 












 


Finance Committee                                                             49                                                                9 February 2022

7.               General Discussion Items

 

8.               Next Meeting Date

                   Wednesday 9 March 2022.

 

9.               Closure