Council Agenda

 

 

 

23 March 2022

 

 

 

 

 


ALL INFORMATION AVAILABLE IN VARIOUS FORMATS ON REQUEST

city@busselton.wa.gov.au

 

 


CITY OF BUSSELTON

MEETING NOTICE AND AGENDA – 23 March 2022

 

 

 

TO:                  THE MAYOR AND COUNCILLORS

 

 

NOTICE is given that a meeting of the Council will be held in the Council Chambers, Administration Building, Southern Drive, Busselton on Wednesday, 23 March 2022, commencing at 5.30pm.

 

Your attendance 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

 

17 March 2022


CITY OF BUSSELTON

Agenda FOR THE Council MEETING TO BE HELD ON 23 March 2022

TABLE OF CONTENTS

 

ITEM NO.                                        SUBJECT                                                                                                                              PAGE NO.

1....... Declaration of Opening, ACKNOWLEDGEMENT OF COUNTRY and Announcement of Visitors. 5

2....... Attendance. 5

3....... Prayer. 5

4....... Application for Leave of Absence. 5

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

6....... Announcements Without Discussion.. 5

7....... Question Time For Public. 5

8....... Confirmation and Receipt Of Minutes. 5

Previous Council Meetings. 5

8.1          Minutes of the Council Meeting held 9 March 2022. 5

Committee Meetings. 6

8.2          Minutes of the Audit and Risk Committee Meeting held 2 March 2022. 6

8.3          Minutes of the Policy and Legislation Committee Meeting held 2 March 2022. 6

8.4          Minutes of the Finance Committee Meeting held 9 March 2022. 6

9....... RECEIVING OF Petitions, Presentations AND DEPUTATIONS. 6

10..... QUESTIONS BY MEMBERS OF WHICH DUE NOTICE HAS BEEN GIVEN (WITHOUT DISCUSSION). 6

11..... Items brought forward for the convenience of those in the public gallery. 6

12..... Reports of Committee. 7

12.1        Audit and Risk Committee - 2/3/2022 - 2021 ANNUAL COMPLIANCE AUDIT RETURN.. 7

12.2        Policy and Legislation Committee - 2/3/2022 - LOCAL GOVERNMENT PROPERTY AMENDMENT LOCAL LAW 2022. 30

12.3        Policy and Legislation Committee - 2/3/2022 - HOLIDAY HOME REGULATORY FRAMEWORK REVIEW... 82

12.4        Policy and Legislation Committee - 2/3/2022 - COUNCIL POLICY: TREE MANAGEMENT AND RETENTION ON CITY LAND.. 139

12.5        Policy and Legislation Committee - 2/3/2022 - REVIEW OF COUNCIL POLICY: MEETINGS, INFORMATION SESSIONS AND DECISION MAKING PROCESSES. 145

12.6        Policy and Legislation Committee - 2/3/2022 - REVIEW OF CUSTOMER SERVICE CHARTER. 154

12.7        Finance Committee - 9/3/2022 - 2021/22 MID-YEAR BUDGET REVIEW... 167

12.8        Finance Committee - 9/3/2022 - FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 31 JANUARY 2022. 183

12.9        Finance Committee - 9/3/2022 - LIST OF PAYMENTS MADE - JANUARY 2022. 218

13..... Planning and Development Services Report. 229

14..... Engineering and Work Services Report. 230

15..... Community and Commercial Services Report. 231

15.1        APPLICATION CLUB NIGHT LIGHTS PROGRAM - BUSSELTON BOWLING CLUB. 231

16..... Finance and Corporate Services Report. 236

16.1        ARTGEO RESIDENT ARTIST STUDIO 2 LEASE. 236

16.2        LONG TERM FINANCIAL PLAN 2022/23 - 2031/32. 240

17..... Chief Executive Officers Report. 292

17.1        Councillors' Information Bulletin. 292

18..... Motions of which Previous Notice has been Given.. 295

19..... urgent business. 295

20..... Confidential Matters. 295

21..... Closure. 295

 


Council                                                                                      4                                                                     23 March 2022

 

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

 

2.               Attendance 

Apologies

 

Approved Leave of Absence

 

Nil

 

3.               Prayer

 

4.               Application for Leave of Absence

 

5.               Disclosure Of Interests

 

6.               Announcements Without Discussion

Announcements by the Presiding Member

 

7.               Question Time For Public

Response to Previous Questions Taken on Notice

Public Question Time For Public

 

8.               Confirmation and Receipt Of Minutes 

Previous Council Meetings

8.1             Minutes of the Council Meeting held 9 March 2022

Recommendation

That the Minutes of the Council Meeting held 9 March 2022 be confirmed as a true and correct record.

 

Committee Meetings

8.2             Minutes of the Audit and Risk Committee Meeting held 2 March 2022

Recommendation

That the Minutes of the Audit and Risk Committee Meeting held 2 March 2022 be noted.

 

8.3             Minutes of the Policy and Legislation Committee Meeting held 2 March 2022

Recommendation

That the Minutes of the Policy and Legislation Committee Meeting held 2 March 2022 be noted.

 

8.4             Minutes of the Finance Committee Meeting held 9 March 2022

Recommendation

That the Minutes of the Finance Committee Meeting held 9 March 2022 be noted.

 

9.               RECEIVING OF Petitions, Presentations AND DEPUTATIONS

Petitions

Presentations

Deputations

 

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

 

11.             Items brought forward for the convenience of those in the public gallery


Council                                                                                      10                                                                  23 March 2022

12.             Reports of Committee

12.1           Audit and Risk Committee - 2/3/2022 - 2021 ANNUAL COMPLIANCE AUDIT RETURN

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

Compliance Audit Return

BUSINESS UNIT

Governance Services

REPORTING OFFICER

Governance Coordinator - Emma Heys

AUTHORISING OFFICER

Director Finance and Corporate Services - Tony Nottle

NATURE OF DECISION

Legislative: adoption of “legislative documents” such as local laws, local planning schemes and local planning policies

VOTING REQUIREMENT

Absolute Majority

ATTACHMENTS

Attachment a   2021 Compliance Audit Return - City of Busselton Responses

This item was considered by the Audit and Risk Committee at its meeting on 2/3/2022, the recommendations from which have been included in this report.

COMMITTEE RECOMMENDATION

That the Council, having received the 2021 Compliance Audit Return (Attachment A),

1.    adopt the 2021 Compliance Audit Return; and

2.    authorises the Mayor and Chief Executive Officer to sign in joint the Certificate.

OFFICER RECOMMENDATION

That the Council, having received the 2021 Compliance Audit Return (Attachment A),

1.    adopt the 2021 Compliance Audit Return; and

2.    authorises the Mayor and Chief Executive Officer to sign in joint the Certificate. 

EXECUTIVE SUMMARY

The Compliance Audit Return (CAR) is a statutory reporting tool that evaluates the City’s compliance with targeted sections of the Local Government Act 1995 (the Act) during the period 1 January 2021 to 31 December 2021.

 

The City has completed the 2021 CAR and it is included in this report (Attachment A) for the Audit & Risk Committee’s consideration. The 2021 CAR is recommended for adoption by Council, after which it will be lodged, as required, with the Department of Local Government, Sport and Cultural Industries (the Department) by 31 March 2022.

BACKGROUND

Between 1 January 2022 and 31 March 2022, local governments are required to carry out an audit of compliance covering the period 1 January 2021 to 31 December 2021. The City’s responses to the 2021 CAR are to be reviewed by the Audit & Risk Committee and then recommended to Council for adoption. The certified CAR, together with an extract of the Council Minutes of the meeting in which the 2021 CAR is adopted, will be lodged with the Department via the online SmartHub portal by 31 March 2022.

OFFICER COMMENT

In completing the 2021 CAR, relevant officers have undertaken an audit of the City’s activities, practices and procedures in line with the Act and associated Regulations.

The Audit results are summarised in the Table below:

 

Compliance Area

Number of Questions

Compliance

Commercial Enterprises by Local Government

5

100%

Delegation of Power/Duty

13

100%

Disclosures of Interest

25

99%

Disposal of Property

2

100%

Elections

3

100%

Finance

7

100%

Integrated Planning and Reporting

3

100%

Local Government Employees

6

100%

Official Conduct

3

100%

Tenders for Providing Goods and Services

22

100%

Optional Questions

9

100%

 

Disclosures of Interest

Due to an employee transitioning between fixed and permanent roles within the same business unit, an administrative oversight occurred and the employee was not provided with a Primary Return within the required time. Once this error was identified, the Primary Return was provided to the employee, who completed it immediately. This is therefore not a breach by the employee, but an administrative oversight.

 

The administrative process for identifying employees who are required to submit a Primary Return has now been strengthened, with a monthly audit of the appointments notifications against the delegations register and Primary/Annual Returns register.

 

Overall, the 2021 CAR represents a high level of compliance by the City.

 

Statutory Environment

Section 7.13 of the Local Government Act 1995 provides for the making of Regulations in regards to Audits.

 

Regulation 13 of the Local Government (Audit) Regulations 1996 prescribes the statutory requirements for the compliance audit.

 

Regulations 14 and 15 state the following:

                14.          Compliance audits by local governments

(1)          A local government is to carry out a compliance audit for the period 1 January to 31 December in each year.

                                (2)          After carrying out a compliance audit the local government is to prepare a                                             compliance audit return in a form approved by the Minister.

                                (3A)       The local government’s audit committee is to review the compliance audit                                              return and is to report to the council the results of that review.

                                (3)          After the audit committee has reported to the council under subregulation                                             (3A), the compliance audit return is to be –

                                                (a) presented to council at a meeting of the council; and

                                                (b) adopted by council; and

                                                (c) recorded in the minutes of the meeting at which it is adopted.

                15.          Certified copy of compliance audit return and other documents to be given to                                       Departmental CEO

                                (1)          After the compliance audit return has been presented to the council in                                                     accordance with regulation 14(3) a certified copy of the return together with-

                                                (a) a copy of the relevant section of the minutes referred to in regulation                                                 14(3)(c); and

                                                (b) any additional information explaining or qualifying the compliance audit,

Is to be submitted to the Departmental CEO by 31 March next following the period to which the return relates.

                                (2)          In this regulation – certified in relation to a compliance audit return means                                            signed by –

                                                (a) the mayor or president; and

                                                (b) the CEO.

 

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

As an alternative to the proposed recommendation the Council may choose to request further information from officers prior to adopting the 2021 CAR.  It is however a statutory requirement that the 2021 CAR is endorsed by Council and submitted to the Department prior to 31 March 2022.


CONCLUSION

It is recommended that the Council adopts the 2021 CAR for submission to the Department prior to 31 March 2022.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

The 2021 CAR will be lodged with the Department prior to 31 March 2022.

 


Council

21

23 March 2022

12.1

Attachment a

2021 Compliance Audit Return - City of Busselton Responses

 




















Council                                                                                      35                                                                  23 March 2022

12.2           Policy and Legislation Committee - 2/3/2022 - LOCAL GOVERNMENT PROPERTY AMENDMENT LOCAL LAW 2022

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

Local Laws

BUSINESS UNIT

Corporate Services

REPORTING OFFICER

Legal Officer - Briony McGinty

AUTHORISING OFFICER

Director Finance and Corporate Services - Tony Nottle

NATURE OF DECISION

Legislative: adoption of “legislative documents” such as local laws, local planning schemes and local planning policies

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   Consolidated Current Local Law 2010

Attachment b    Amendment Local Law with mark-ups 2022

Attachment c    Amendment Local Law 2022

This item was considered by the Policy and Legislation Committee at its meeting on 2/3/2022, the recommendations from which have been included in this report.

COMMITTEE RECOMMENDATION

That the Council:

1.         Resolves to make the City of Busselton Local Government Property Amendment Local Law 2022 in accordance with section 3.12(4) of the Local Government Act 1995.

2.         Authorises the Chief Executive Officer to carry out the processes required to make the City of Busselton Local Government Property Local Law 2022 in accordance with section 3.12(5) and section 3.12(6) of the Local Government Act 1995.

OFFICER RECOMMENDATION

That the Council:

1.         Resolves to make the City of Busselton Local Government Property Amendment Local Law 2022 in accordance with section 3.12(4) of the Local Government Act 1995.

2.         Authorises the Chief Executive Officer to carry out the processes required to make the City of Busselton Local Government Property Local Law 2022 in accordance with section 3.12(5) and section 3.12(6) of the Local Government Act 1995.

EXECUTIVE SUMMARY

The Shire of Busselton Local Government Property Local Law 2010 (Property Local Law) was first published in the government gazette in 2010, with little change since. Throughout the first half of 2021 a statutory review of the Property Local Law was conducted pursuant to section 3.16 of the Local Government Act 1995 (the Act).

 

On 9 June 2021, Council resolved that, among other things, amendments were required to the Property Local Law and that a local law amendment should be initiated. In accordance with that resolution, an amendment to the Property Local Law was prepared (Amendment Local Law) for consideration by the Council.

 


Proposed amendments were presented to Council and, on 13 October 2021, Council resolved to give local public notice of the Amendment Local Law pursuant to section 3.12(3) of the Act. The Amendment Local Law is now referred back to Council for Council to consider any submissions made, and to determine whether to make the Amendment Local Law, in accordance with section 3.12(4) of the Act.

 

It is recommended that the Council makes the Amendment Local Law at Attachment C.

BACKGROUND

The Property Local Law was introduced in 2010 and further amended in 2011. The consolidated Shire of Busselton Local Government Property Local Law is at Attachment A. At that time, the Property Local Law replaced the outdated Reserves and Foreshores Local Law which covered a limited subject matter. The impetus for the Property Local Law was to better regulate use of public spaces, with particular emphasis on vegetation protection. The Property Local Law largely adopted the WALGA model and is consistent with similar local laws of many other local governments across the State.

 

Section 3.16 of the Act requires that local laws are reviewed every 8 years to consider whether or not the local law under review should be repealed or amended. As part of this review process, submissions may be made to the local government in relation to the local law under review. During the public consultation phase for the statutory review of the Property Local Law in 2021, the City did not receive any submissions. However, given the local law covers a significant subject matter of broad and regular application, an extensive internal review was conducted by officers which identified various matters requiring attention.

 

Those matters which were recommended for detailed review in the June 2021 report to Council were as follows:

 

Launching and/or Landing of Drones (Schedule 2, clause 2.2)

The City has no control over airspace, which, under the current legislation, is reserved for the Civil Aviation Safety Authority. Therefore, the City cannot regulate drone usage in the air. However, there is the capacity, if the City chooses, to regulate launching and/or landing of drones from local government property.

 

Under the current Property Local Law, the City has the ability to regulate launching and/or landing motorised model aeroplanes from local government property. It is open to interpretation as to whether a drone could be classified as a motorised model aeroplane, which could cause some ambiguity around this capacity. Therefore, it is recommended to strengthen and clarify those provisions of the Property Local Law to enable regulation.

 

The Amendment Local Law does not seek to change the current position with regard to how the City regulates drone usage. However, it seeks to clarify that, if the City chooses to do so, it could restrict the use of drones on local government property pursuant to a determination process by the Council. This change will allow Council to designate particular areas where the launching and landing of drones may, for example, be prohibited, permitted, or permitted subject to various conditions.

 

Exercise Classes on Reserves (clause 3.13 (1)(d))

The review noted that permits for “boot camps etc.” under the Property Local Law are currently only required on beaches or at City owned pools or recreation centres. There are other City facilities/venues currently being used for these activities – for example City managed ovals. It is therefore recommended that the City consider introducing provisions to clarify the City’s powers to regulate these types of activities, in order to respond to conflicts of use, where appropriate. 

 


Swimming Pool – increase to minimum age requirements (clause 5.1)

Currently, the Property Local Law restricts entry to children under 10 years old unless accompanied by a responsible person over the age of 12. It is recommended that the City considers amending the age requirements so that children under the age of 12 will not be permitted entry unless accompanied by a person over the age of 16. The 12 year old minimum age limit is above the Minimum Entry Age requirements under the Code of Practice for swimming pools (issued under the Health Act 1911), being that a child under 10 must be accompanied by a person 16 years or older. However, it is in line with industry benchmarking and more recent understandings of best practice.

 

Penalties (Schedule 1)

Penalties for breaches of the Property Local Law are currently set at (mostly) $200.  The Act allows for maximum infringements of up to $500. Given the current penalties were set over 10 years ago, it recommended that appropriate increases are made. If the City was to raise penalties in line with Perth CPI from when the local law was first introduced (and penalties last amended), this would represent an approximate $50 increase in penalties. A review of other local government’s practices suggests this represents a modest increase.

On 13 October 2021 the Council resolved as follows:

That the Council:

1.         Commences the law-making process for the City of Busselton Local Government Property Amendment Local Law 2021, with clauses 5.1(1)(a)(i)-(ii) amended to refer to being under the age of 12 years and a responsible person over the age of 16 years; the purpose and effect of the local law being as follows:

Purpose: To regulate the care, control and management of local government property (except thoroughfares) by amending sections of the Shire of Busselton Local Government Property Local Law 2010.

Effect: To control the use of local government property by updating minimum age requirements for entry to swimming pools, updating penalties, and clarifying other powers.

2.         Authorises the CEO to carry out the law-making procedure under section 3.12(3) of the Local Government Act 1995, by:

(a)      Giving local public notice of the Amendment Local Law; and

(b)      Giving a copy of the Amendment Local Law and public notice to the Minister for Local Government.

3.         Notes that the CEO, after the close of the public consultation period, will submit a report to the Council on any submissions received on the proposed local law to enable the Council to consider the submissions made and to determine whether to make the local law in accordance with section 3.12(4) of the Act.

OFFICER COMMENT

The Property Local Law has operated effectively since its gazettal. The Property Local Law is based on the WALGA model but was modified to accommodate the particular circumstances of the locality. However, during the statutory review conducted during 2021, various opportunities for improvement have been identified. The matters identified during the review are as discussed in the background section of this report and have been incorporated into the Amendment Local Law.


Statutory Environment

Local Government Act 1995

Section 3.16 of the Act requires that within a period of 8 years from the day when a local law commenced or a report of a review of the local law was accepted, a local government is to carry out a review of the local law to determine whether or not it considers that it should be repealed or amended.

 

The City developed and maintains a local law review program to ensure compliance with the requirements of Section 3.16.

 

Section 3.5 of the Act provides Council with the head of power for making local laws, which stipulates:

A local government may make Local Laws under this Act prescribing all matters that are required or permitted to be prescribed by a local law, or are necessary or convenient to be so prescribed, for it to perform any of its functions under this Act.

The procedure for making local laws is set out in sections 3.12 to 3.17 of the Act and regulation 3 of the Local Government (Functions and General) Regulations 1996 (WA). The person presiding at a Council meeting is to give notice of the purpose and effect of a proposed local law by ensuring that:

·        the purpose and effect of the proposed local law is included in the agenda for that meeting; and

·        the minutes of that Council meeting include the purpose and effect of the proposed local law.

 

The purpose and effect of the Amendment Local Law is as follows:

 

Purpose: To regulate the care, control and management of local government property (except thoroughfares) by amending sections of the Shire of Busselton Local Government Property Local Law 2010.

 

Effect: To control the use of local government property by updating minimum age requirements for entry to swimming pools, updating penalties, and clarifying other powers.

Local public notice is to be given by advertising the Amendment Local Law in accordance with the requirements of sections 3.12(3) of the Act. The submission period must run for a minimum period of six weeks after which Council, having considered any submissions received, may resolve to make the local law as proposed or make a local law that is not significantly different from what was proposed.

Parliamentary Scrutiny

Section 42 of the Interpretation Act 1984 allows the WA State Parliament to disallow a local law, which is a mechanism to guard against the making of subsidiary legislation that is not authorised or contemplated by the empowering enactment, has an adverse effect on existing rights or ousts or modifies the rules of fairness. Parliament has appointed the Joint Standing Committee on Delegated Legislation (JSC) which is a committee of State politicians from both houses of the Western Australian Parliament, to undertake an overseeing role on its behalf, which includes the power to scrutinise and recommend the disallowance of local laws to the Parliament. After gazettal, a copy of the Amendment Local Law will be sent to the JSC who will examine the local law and determine whether or not it complies with abovementioned criteria.

 

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

 


Relevant Plans and Policies

The following policies are used to assist in the application of the Property Local Law:

·        Commercial Use of City Land and Facilities;

·        Community Hire of City Property; and

·        Private Work on City Land, including private coastal protection work on City Land.

 

Financial Implications

Costs associated with the advertising and gazettal of the Amendment Local Law will come from the legal budget. These costs are unlikely to exceed $2,000 and there are sufficient funds in the legal budget for this purpose.

 

In terms of the increase in modified penalties, the City is unlikely to see any significant increase in revenue, given the City’s approach to its regulatory functions. Proposed increases are minor and based on a review of the City’s existing amounts and a comparison of other local governments.

 

Making and implementing the Amendment Local Law should not have any other financial implications for the City.

 

Stakeholder Consultation

The Amendment Local Law was advertised publicly in local newspapers, on the City’s website, on social media and on public notice boards for a minimum of 6 weeks in accordance with the requirements under section 3.12(3)(a) of the Act. No public submissions have been received.

 

In accordance with section 3.12(3)(b) of the Act a copy of the Proposed Local Law was forwarded for consideration and comment to the Minister for Local Government.  The DLGSC responded on behalf of its Minister and suggested minor changes to the Proposed Local Law. These changes were minor edits and do not affect the operation or application of the local law. They are contained in the marked-up version of the Amendment Local Law at Attachment B. 

 

Risk Assessment

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

 

Options

As an alternative to the proposed recommendation the Council could:

1.         Resolve not to make the local law. However, for the reasons stated above, it is recommended to make the local law.

2.         Resolve to make additional changes to the Property Local Law. However, if those changes are significant, the local law-making process would need to recommence from the start due to statutory requirements that any changes are not significantly different from what was originally proposed.

CONCLUSION

The City has undertaken an extensive review of the Property Local Law. The Amendment Local Law has been prepared and advertised publicly in accordance with the Act. No significant changes have been recommended to the Amendment Local Law. It is recommended that Council resolve to make the Amendment Local Law.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Should Council resolve to make the Amendment Local Law it will need to be gazetted and will come into operation 14 days after publication. The timeframe for completion of the gazettal process is approximately thirty days from the date of the Council resolution.

 


Council

69

23 March 2022

12.2

Attachment a

Consolidated Current Local Law 2010

 



































Council

75

23 March 2022

12.2

Attachment b

Amendment Local Law with mark-ups 2022

 







Council

81

23 March 2022

12.2

Attachment c

Amendment Local Law 2022

 







Council                                                                                      91                                                                  23 March 2022

12.3           Policy and Legislation Committee - 2/3/2022 - HOLIDAY HOME REGULATORY FRAMEWORK REVIEW

STRATEGIC THEME

OPPORTUNITY - A vibrant City with diverse opportunities and a prosperous economy

STRATEGIC PRIORITY

3.2 Facilitate an innovative and diversified economy that supports local enterprise, business, investment and employment growth.

SUBJECT INDEX

Local Planning Scheme 21 Amendments

BUSINESS UNIT

Strategic Planning

REPORTING OFFICER

Strategic Planner - Joanna Wilkinson

AUTHORISING OFFICER

Director, Planning and Development Services - Paul Needham

NATURE OF DECISION

Legislative: adoption of “legislative documents” such as local laws, local planning schemes and local planning policies

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   Consultation Outcomes Report

Attachment b    Conditions of Registration (working draft)

Attachment c    Code of Conduct (working draft)

This item was considered by the Policy and Legislation Committee at its meeting on 2/3/2022, the recommendations from which have been included in this report.

COMMITTEE RECOMMENDATION

That the Council supports further progressing the review of the City’s regulatory framework for holiday homes, as follows:

1.         Note the Consultation Outcomes Report to Inform Changes to the Holiday Home Regulatory Framework (January 2022) provided at Attachment A.

2.         Implement changes to the regulatory framework for holiday homes in three stages:

(a)       Stage one:

Changes to conditions of registration and introduction of a code of conduct as generally described in this report.

(b)       Stage two:

(i)        Initiate amendments to the Holiday Homes Local Law 2012, to be presented via a separate report during the first half of 2022.

(ii)      Concurrently, develop a Council Policy to guide application of the local law.

(c)       Stage three:

Draft and initiate advertising of formal changes relating to holiday home provisions in Local Planning Scheme No. 21 and Local Planning Policy No. 4.1: Holiday Homes, to be presented via a separate report, once uncertainties related to the state level regulatory framework have been resolved.

OFFICER RECOMMENDATION

That the Council supports further progressing the review of the City’s regulatory framework for holiday homes, as follows:

1.         Note the Consultation Outcomes Report to Inform Changes to the Holiday Home Regulatory Framework (January 2022) provided at Attachment A.

2.         Implement changes to the regulatory framework for holiday homes in three stages:


(a)       Stage one:

Changes to conditions of registration and introduction of a code of conduct as generally described in this report.

(b)       Stage two:

(i)        Initiate amendments to the Holiday Homes Local Law 2012, to be presented via a separate report during the first half of 2022.

(ii)       Concurrently, develop a Council Policy to guide application of the local law.

(c)       Stage three:

Draft and initiate advertising of formal changes relating to holiday home provisions in Local Planning Scheme No. 21 and Local Planning Policy No. 4.1: Holiday Homes, to be presented via a separate report, once uncertainties related to the state level regulatory framework have been resolved.

EXECUTIVE SUMMARY

In 2012, three interrelated key instruments were introduced by Council to regulate holiday homes – these included a local law, provisions in the local planning scheme, and a local planning policy. The local planning policy has since been reviewed and amended, however the local law has remained unchanged, and the Scheme provisions were carried over in 2014, without substantive change, into Local Planning Scheme No. 21.

 

Following a resolution of Council in June 2021 to review five key aspects of the framework, extensive stakeholder and community consultation was carried out. Each of these changes was advertised as an ‘opportunity for change’, and each received majority support from consultation respondents.

 

The purpose of this report is to provide information about the outcomes of consultation, and propose that formal changes be introduced in three separate stages. As a first stage, changes relating to the management of holiday homes have been drafted, and should these changes be supported it is proposed that the community and industry stakeholders will be notified through a number of different means.

BACKGROUND

In 2002, upon direction from the Minister for Planning, the Shire of Busselton set out to establish a policy position for holiday homes in the District. A regulatory framework was formally established late in 2012, and this continues to be one of the most comprehensive in the State. The framework includes three key components: provisions in Local Planning Scheme No. 21 (the Scheme) and Local Planning Policy No. 4.1: Holiday Homes (LPP 4.1), both pertaining to planning land use; and the Holiday Homes Local Law 2012 (the Local Law), pertaining to registration and management.

 

Over time issues relating to holiday homes have arisen that may not be sufficiently addressed through this framework. At its meeting of 9 June 2021 Council resolved (C2106/119) to conduct a review by drafting a number of potential changes, and to consult with the community about these changes.

 

In summary the proposed changes were:

 

(a)       Exclude some residential areas from holiday home use, by introducing areas of exclusion.

(b)       Revise standards for the size and design of properties, relative to maximum permissible occupancy numbers.

(c)       Revise and introduce new requirements and expectations for managers.

(d)       Introduce requirements and expectations for occupants and their guests.

(e)       Introduce requirements for the management of dogs.

(f)        Develop a Council Policy to guide application of the Local Law.

 

Consultation was carried out for a period of seven weeks between 13 August and 4 October 2021, comprising a number of community information sessions, static displays, an extensive online document library, and an online survey. 553 survey responses and a further 18 written submissions were received and each proposed change gained support from the majority of respondents. A report outlining the full consultation process and an analysis of the outcomes is provided at Attachment A.

 

The remainder of this report sets out whether and/or how the various advertised changes can be formally pursued in response to the outcomes of consultation.

OFFICER COMMENT

Introduction of staged changes

Consultation carried out during 2021 affirmed that there is stakeholder and community support for a review of the Holiday Home Regulatory Framework. It is proposed that the majority of advertised changes be formally drafted and implemented in three separate stages.

 

The primary reasons for phased introduction are:

·    Prioritisation of workload, and the length of time is will take for some of the changes to take effect.

·    Uncertainty around the State’s planning framework because of the draft Position Statement: Planning for Tourism.

 

Stage 1: some of the holiday home management changes are proposed to be introduced first. This includes changes to the conditions of registration and introduction of a new code of conduct, which can be implemented within the City’s existing regulatory framework. A working draft of the conditions of registration is provided at Attachment B, and the code of conduct at Attachment C. Should these changes be supported it is intended that stakeholders will be notified, with the changes coming into effect through the 2022/23 annual registration renewal process.

 

Stage 2: amendments to the Local Law are required to follow a statutory process, and it is proposed that the amended Local Law be presented to Council through a subsequent report during the first half of 2022. Concurrently, a Council policy would be developed to guide application of the Local Law.

 

Stage 3: most of the land use/development changes are subject to statutory requirements under the Regulations. Additionally, the State Government’s recently released draft Position Statement: Planning for Tourism may impact the current development controls provided through the Scheme and LPP 4.1, and the preferred future direction identified through this review. The State’s draft policy was referred to Council on 9 February 2022 (C2202/022) and Council resolved to provide a formal submission advocating against a number of elements of the draft policy. Officers recommend that the City undertakes these changes as a third stage, either later in 2022 or upon finalisation of the State’s policy position.

 

Holiday home management changes – Stages 1 and 2

Many holiday home neighbours and community members who responded to the 2021 consultation raised concerns around the impact of holiday homes on the enjoyment of their own homes and neighbourhoods. Their negative experiences relate to noise, disturbance and antisocial behaviour; parking of vehicles outside of lot boundaries; unattended barking dogs; and management of waste disposal. There was a sentiment that management issues should be addressed as a matter of priority.

 

Following the closure of consultation, officers met with several local managing agencies who are collectively responsible for the management of approximately one third of all registered holiday homes in the district. These managers were supportive of the advertised changes, observing that the changes would complement the management policies and practices they already have in place.

 

The three advertised opportunities for change that relate to the management of holiday homes were:

(b)       “3. Change the requirements and expectations for managers, by:

(c)              a) Reducing the amount of time in which a manager must respond to any contact relating to a holiday home, from 24 hours to 12 hours.

(d)             b) Requiring managers to live within a 30 minute travel time from the holiday home.

(e)              c) Requiring that the contact details of the manager be displayed on a sign that can be seen from the street, so that the manager can be contacted directly if there is a reason to lodge a complaint.

(f)              d) Requiring that the manager must resolve complaints and ensure that occupants follow the correct rules (e.g. not too many occupants, cars parked within the property boundary, not cause a nuisance to neighbours etc.).

(g)       4.   Introduce a code of conduct for the management of the behaviour of occupants and their guests. This would include the display of the code of conduct in the holiday home, and acknowledgement by the occupants that they are aware of the code of conduct.

(h)       5.   Require that dogs must not be left unattended at holiday homes.”

 

Each change received majority support from consultation survey respondents (61%, 86% and 67% respectively), with full details provided in the attached Consultation Outcomes Report to Inform Changes to the Holiday Home Regulatory Framework.

 

In regard to change number three, this included four separate components. As part of the consultation, survey respondents were asked to identify which of the components they did not support. This was a non-compulsory question, resulting in an overall 25.3% response rate (140 of the 553 survey participants). The remaining two advertised changes were supported by the majority of respondents from all stakeholder groups.

 

Recommendations for the implementation of changes are discussed below, and where supported by officers are identified as either a Stage 1 or Stage 2 change.

 

Change 3a:          Reducing the amount of time in which a manager must respond to any contact relating to a holiday home, from 24 hours to 12 hours

 

The requirement for managers to respond to contact relating to a holiday home is provided through clause 3.4 of the Local Law which states:

 

“3.4 Contacting the manager

                …

(2)          The manager must respond within a reasonable time but in any event within 24 hours to any contact relating to the holiday home; …”

 


This requirement is further explained through a condition of registration stating:

 

“The manager must inform the City of Busselton in writing within 24 hours of becoming aware of any breach of these conditions of registration or breach of the local law or relevant law by an attendant and of any action taken in relation thereto: provided that if the manager becomes aware of such breach on a weekend or public holiday, the City must be informed of such breach on the first following business day.”

 

A revised response time of 12 hours was proposed because a dilemma arises around a response time that may be considered reasonable. ‘Reasonable’ may be almost immediate for a management agency with multiple staff, but this might not be the case if a sole person is appointed as manager.

 

The question of reasonableness also applies to the potential to criminalise behaviour (the time to respond to a complaint) which may be disproportionate to the purpose sought to be achieved. For example, it may not be reasonable to criminalise a slow response to a complaint about an excessive number of vehicles parked at a property. It may be considered reasonable to expect a quick response regarding an excessive number of noisy and disruptive holiday home occupants and guests during the night. However this sort of matter may also be more appropriately dealt with by the police rather than a manager.

 

In instances where this measure was not supported by respondents, generally it was because they preferred to see a shorter response time such as one or two hours. Given the question of ‘reasonableness’, and the overwhelming support for a 12 hours response time, officers recommend that this proposed time be retained.

 

A change to sub-clause 2.3 (i) (ii) would require an amendment to the Local Law, and it is recommended that the amendment be undertaken as part of Stage 2.

 

Change 3b:          Requiring managers to live within a 30 minute travel time from the holiday home

 

Currently there is no requirement pertaining to where a holiday home manager resides, meaning owners might personally manage a property regardless of place of residence (noting that 53.5% of owners/current applicants who responded to the 2021 consultation reside outside of the District), or elect to have the property managed by a local management agency, friend, etc. 48.5% of the 200 owners/current applicants who responded to the survey did not support this measure, with reasons including:

·        many problems can be resolved via telephone;

·        police should be contacted in the case of serious disruption;

·        this measure would force the management of all holiday homes to be carried out by local entities (lack of availability; increased cost).

 

The Shires of Augusta-Margaret River and Exmouth require all development applications for a holiday home to provide a management plan that includes the contact details of a manager/caretaker who resides within a specified (short) travel time of the premises. As neither of these local governments has a local law for holiday homes, this requirement stems from the planning process. Noosa Shire Council has introduced a similar provision through a local law (drafted under Queensland state legislation) that came into effect on 1 February 2022.

 

Officers have further reviewed this potential change, initially advising that introduction could be via the Local Law, however it is unlikely to be supported by the parliamentary Joint Standing Committee. A set travel time is more likely to be achievable by a managing agency, than it is by a sole person appointed as manager.

 

Despite support received during consultation for this measure, other changes such as the requirement for display of a manager’s contact details on signage and a code of conduct may alleviate some management issues that were sought to be addressed through this measure. Officers recommend that this change is not pursued. However should Council be of a mind to investigate this option then further advice would be sought.

 

Change 3c:          Requiring that the contact details of the manager be displayed on a sign that can be seen from the street

 

A standard condition of registration is that any signage advertising a holiday home must not exceed 0.2m², and be situated on private property and within the subject site. The maximum signage size is consistent with Schedule 9 (A) 2 of the Scheme, and does not require development approval.

 

The Local Law provides that the manager must be contactable through clause 2.6:

 

                “2.6 Conditions which may be imposed

The Council may approve an application for registration subject to conditions relating to—

                …

(k)          ensuring that each of the manager, and the acting manager while undertaking the functions of the manager—

(i)            is contactable by telephone, at any time of the day or night, using his or her contact details provided to the City; …”

 

The proposed change received majority support from all consultation respondents. Opposition primarily came from owners/current applicants, with some of the reasons being:

·        Safety and security of a premises by providing an obvious advertisement that it would be frequently vacant;

·        Likelihood of an unnecessary volume of phone calls and/or vexatious complaints;

·        Adequacy of providing contact details to immediate neighbours only;

·        Adverse visual impact in the streetscape.

 

At the follow-up meeting with managing agencies, support was provided because they already have contact details on signage outside of managed properties, but receive a large volume of calls that do not relate to the properties they manage. Managing agencies also commented that they have not experienced security and theft issues resulting from signage outside of properties.

 

The feedback from managing agencies suggests that there are many instances where no contact details are provided to nearby neighbours, leaving them helpless if enquiries or complaints are not addressed. Applying this requirement to all properties would mean that calls are directed to the appropriate manager, and a greater likelihood of enquiries, complaints and issues being resolved. The owner/current applicant concerns around safety and security are understood, however there is also benefit in that a sign outside a property is an alternative form of advertising that could provide advantage in the short-stay market.

 

It is recommended that this measure is introduced in Stage 1 through a new condition of registration, stating that the premises must display a sign, visible from the street, notifying of a current telephone number upon which the manager can be contacted.

 

Owners would be provided with a transition time in which to install the sign, with initial proof of such signage to be provided by 30 September 2022, and subsequently each year through the annual registration renewal process.

 

Change 3d:          Requiring that the manager must resolve complaints and ensure that occupants follow the correct rules

 

The Local Law provides a mechanism to require managers to terminate tenancies where attendants breach the conditions of registration. Clause 3.2 states:

 

                “3.2 Breach of a condition by an attendant

(1)  In this clause, breach means breach by an attendant of—

(a)  a condition of registration;

(b)  this local law; or

(c)   a relevant law.

(2)  Within 24 hours of—

(a)  the CEO or an authorised person giving written notice to the manager of the breach;

(b)  the manager becoming aware of the breach; or

(c)   the manager becoming aware of circumstances that would reasonably enable the manager to determine that the breach had occurred.

the manager must ensure that—

(d)  the occupant’s tenancy is terminated; and

(e)  the occupant vacates the holiday home.”

 

It is recommended that this measure is expanded in Stage 1 through a new condition of registration, so that the manager requirement to respond to and resolve any breach is explicitly conveyed.

 

Change 4:            Introduce a code of conduct for the management of the behaviour of occupants and their guests

 

The Local Law allows for conditions of registration that can cover matters such as the maximum number of occupants and their guests; the minimum number of on-site car parking bays for the exclusive use of occupants and guests; and the maximum of vehicles that may be parked on the premises at any time. The conditions include provisions for each of these matters as well as the disposal of waste. Registration can be cancelled if there is evidence of excessive noise, antisocial behaviour or other nuisances, and an occupant’s tenancy can be cancelled if there are breaches to the Local Law or conditions of registration. It is required that these conditions must be displayed at the premises, however it may be the case that occupants and their guests are not fully aware of their obligations.

 

A separate document relating to the obligations of occupants and their guests, in the form of a code of conduct, would clarify these requirements and expectations. A standardised document, drafted by the City and provided to all registered holiday homes, would introduce a consistent approach. It should be noted that the code of conduct itself would not be enforceable by the City against individual attendants, however the City could require proof that the code of conduct is provided to and acknowledged by occupants.

 


It is recommended that this measure is introduced in Stage 1 through:

a)    A new condition of registration requiring managers to notify occupants of the code of conduct; and proof to be provided to the City, upon request, demonstrating that occupants have been notified.

b)    A standardised code of conduct, to be provided to all holiday home owners and managers through the annual renewal process.

 

Change 5:            Require that dogs must not be left unattended at holiday homes

 

Registration can be cancelled if there is evidence of excessive noise or other nuisances, and the conditions of registration specify that nuisance can include barking dogs.

 

Holiday homes are often regarded as a ‘home away from home’ and provide a flexible opportunity for occupants to travel with pets. Dogs in particular can become distressed when left unattended, causing disturbance to neighbours, and the Dog Act 1976 does not provide a workable means to address the matter.

 

It is recommended that this measure is introduced in Stage 1 through a new condition of registration, and a specific section in the code of conduct, stating that dogs are not to be left unattended, and must not cause a nuisance.

 

Statutory Environment

Local Government Act 1995 (LG Act)

Section 3.5 of the LG Act provides Council with the head of power for making local laws, which stipulates:

“A local government may make local laws under this Act prescribing all matters that are required or permitted to be prescribed by a local law, or are necessary or convenient to be so prescribed, for it to perform any of its functions under this Act.”

               

The procedure for making local laws is set out in section 3.12 of the LG Act and regulation 3 of the Local Government (Functions and General) Regulations 1996.

 

Planning and Development Act 2005 (PD Act) and associated Regulations

The PD Act outlines the relevant considerations when preparing and amending local planning schemes.

 

The Planning and Development (Local Planning Schemes) Regulations 2015 identify three different types of Scheme amendments (regulation 34), and set out the procedure for amending a local planning policy (Schedule 2, Part 2, clause 5).

 

Holiday Homes Local Law 2012 (Local Law)

The purpose of the Local Law is to require the registration of all holiday homes, the nomination of a manager and acting manager, and to ensure the adherence to conditions relating to the orderly and proper use of the holiday home.

 

Relevant Plans and Policies

The City’s Community Engagement Policy provides guiding principles for engagement to enable stakeholders to stay informed on matters that affect them and have the opportunity to make informed comment.

 

There are no plans or policies related to the Local Law.

 

Financial Implications

There are no financial implications associated with the officer recommendation, with the costs of reviewing and amending the Holiday Homes Local Law provided for in the City’s budget.

 

Stakeholder Consultation

Initial consultation in relation to the review was undertaken for a period of seven weeks in 2021.

 

No further consultation is proposed to implement Stage 1 recommendations. Relevant stakeholders and the community would be notified through the following actions:

·        Targeted emails or surface mail letters to:

all persons who responded to the 2021 consultation;

holiday home owners and current applicants; and

holiday home managers, management agencies, booking platforms, industry bodies and relevant community associations (incorporated).

·        Notices in the Bay to Bay newsletter, and the City’s social media pages.

·        A notice on the City’s website, including an update to the Holiday Home Regulatory Framework Review YourSay portal.

 

Further consultation would, however, be required as part of progressing stages 2& 3.

 

Risk Assessment

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

Options

As an alternative to the proposed recommendation the Council could:

1.         Resolve to seek further information before making a decision.

2.         Resolve to support the recommendations subject to identified modification(s).

3.         Resolve not to support the recommendation.

CONCLUSION

In 2021 the City commenced a review of the Holiday Homes Regulatory Framework, and publically advertised five key opportunities for change. Each key change was supported, and it is recommended that the review is further advanced by formally drafting and implementing the changes in three separate stages.

 

The first of those stages relates to the management of holiday homes, and would involve notifying stakeholders and the community of revised conditions of registration and a new draft code of conduct for occupants and their guests.

 

The second stage relates to amendments to the Local Law, to be presented to Council in a separate report.

 

The third stage relates to the local planning framework, and it is recommended that this should be placed on hold until the end of 2022, or State Government’s ongoing review of related matters is further advanced.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

In relation to the conditions of registration and code of conduct, relevant stakeholders the community would be notified within six weeks of a Council resolution.

 


Council

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23 March 2022

12.3

Attachment a

Consultation Outcomes Report

 












































Council

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23 March 2022

12.3

Attachment b

Conditions of Registration (working draft)

 

This registration of the premises as a Holiday Home is subject to the following conditions:

 

1.    This registration is valid from the date on which this certificate of registration is issued and expires on 30 June 2022 unless cancelled through clause 2.14 of the local law.

2.    The maximum number of occupants who may be on the premises at any time is …. (in accordance with DA number).

3.    The maximum number of attendants (which term includes guests) who may be on the premises after 10 pm is …. (in accordance with DA number).

4.    An adequate supply of potable water is to be available to all attendants of the holiday home at all times.

5.    The manager must ensure that each receptacle for rubbish and recycling is placed for collection on designated collection days.

6.    Prior to commencement of any occupation of the Holiday Home, the manager must provide all occupants with the following:

a.    the approved Code of Conduct applicable to the premises; and

b.    the Conditions of registration,

and the manager must provide the City with proof of such notification upon request.

7.    All attendant’s vehicles must be parked within the designated parking bays.  No more than …. vehicles may be on the premises at any time. Attendant’s vehicles must not obstruct any street, thoroughfare, adjacent premises or any other person.

8.    The owner and manager must ensure that the premises displays a sign that:

a.    is visible from the street;

b.    displays a current telephone number upon which the manager can be reached;

c.     is located solely within the subject site; and

d.    is no larger than 0.2m2,

and the manager must provide the City with proof of such signage upon request.

9.    Any activity at the premises must comply with assigned noise levels within the Environmental Protection (Noise) Regulations 1997

10.  Any attendant must not cause a nuisance to any other person or disrupt the normal amenity of the area.  Nuisance includes, but is not limited to, noise, amplified music, smoke, odours, light and barking dogs.

 

11.  Dogs must not be left unattended at the premises at any time.

 

12.  The owner and manager must inform the City in writing within 24 hours of any change or proposed change to details provided in relation to the Holiday Home or that would affect any condition imposed under the Local Law.

 


 

13.  The manager must inform the City in writing within 24 hours of becoming aware of any breach of:

a.    these conditions of registration;

b.    the local law;

c.     the code of conduct; or

d.    any other relevant law,

and the manager must also advise of action taken to address such a breach. If the manager becomes aware of such breach on a weekend or public holiday, the City must be informed of such breach on the first following business day.

14.  A copy of the:

a.    approved Code of Conduct:

b.    any emergency management procedures (including an approved bushfire emergency evacuation plan): and

c.     Conditions of Registration

are to be affixed to the inside of the front door of the premises at all times.

15.  Any advertisement for the holiday home must specify the maximum number of occupants and guests permitted on the premises at any given time – which number must be consistent with the Conditions of Registration and development approval.

Note:

Any reference to “local law” in this certificate of registration means the City of Busselton Holiday Homes Local Law 2012. Words and expressions used in this certificate of registration shall have the same meaning as corresponding words and expressions in the local law.

 

The owner, manager and each attendant must comply with these conditions.


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12.3

Attachment c

Code of Conduct (working draft)

 

CODE OF CONDUCT FOR THE OCCUPANTS OF HOLIDAY HOMES [TEMPLATE]

 

1.    Occupants to act lawfully

An occupant must not engage in conduct at the holiday home that contravenes—

(a)       criminal law; and

(b)       the conditions of registration.

2.    Number of occupants

The maximum number of occupants permitted at this holiday home is ___.

3.    Vehicles

3.1.    The number of vehicles (including all motorised vehicles and trailers) parked at the holiday home must not exceed ___.

3.2.    Each vehicle used by an occupant or occupant’s guest of the holiday home must be parked within the designated parking bays.

4.    Obligations to neighbours

4.1.    Each occupant who enters, uses or occupies the holiday home, including any outdoor areas such as an outdoor entertainment area, deck, balcony, swimming pool or spa, must not act in a manner that could reasonably be expected to cause alarm, distress or nuisance to neighbours adjoining or in the vicinity of the holiday home, including but not limited to—

(a)       violence or threats;

(b)       loud aggressive behaviour including yelling, screaming, arguing;

(c)       excessively loud noise nuisance; and

(d)       overlooking or light spill.

4.2.    At all times, all noise coming from the holiday home must be kept to speaking tones when heard from the property boundary, and must be kept to a minimum after 10pm.

5.    Pets

Pets occupying the premises—

(a)       must not be left unattended; and

(b)       must be managed and not cause a nuisance (including a noise nuisance associated with barking or howling) to neighbours adjoining or in the vicinity of the holiday home.

6.    General obligations

6.1.    All rubbish produced by occupants must be stored in a closed rubbish container, and placed on the verge on rubbish collection day.

6.2.    An occupant of the holiday home must not sleep or camp on the site in a tent, caravan, campervan or similar.

7.    Responsibility for conduct of guests

An occupant is responsible for the actions of all guests they invite onto the premises during the occupancy period, and must ensure guests comply with sections 1 - 6 of this code.

8.    Responsibility to manager

An occupant must notify the manager of any dispute or complaint about an occupant’s behaviour as soon as possible after the dispute or complaint arises.


Council                                                                                      141                                                                23 March 2022

12.4           Policy and Legislation Committee - 2/3/2022 - COUNCIL POLICY: TREE MANAGEMENT AND RETENTION ON CITY LAND

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

Council Policies

BUSINESS UNIT

Governance Services

REPORTING OFFICER

Governance Coordinator - Emma Heys

AUTHORISING OFFICER

Director, Engineering and Works Services - Oliver Darby

NATURE OF DECISION

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

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   Proposed Council Policy: Tree Management and Retention on City Land

This item was considered by the Policy and Legislation Committee at its meeting on 2/3/2022, the recommendations from which have been included in this report.

COMMITTEE RECOMMENDATION

That the Council adopt the Council policy: Tree Management and Retention on City Land (the Policy) (Attachment A).

 

OFFICER RECOMMENDATION

That the Council adopt the Council policy: Tree Management and Retention on City Land (the Policy) (Attachment A).

EXECUTIVE SUMMARY

This report presents a proposed Council policy: Tree Management and Retention on City Land (the Policy) (Attachment A) for Council adoption.

BACKGROUND

The City recognises the importance of trees in creating functional and attractive streets and reserves in the urban environment and manages and retains a large number of trees on City land.

 

Recently the City has received increasing numbers of requests to remove or prune trees from City managed verges and reserves, as well as an increasing number of reports of tree related property damage. Anecdotal evidence from other Western Australian local governments show a similar pattern. This can be attributed to the property development boom of the previous 40 years, which did not use root barrier technology (developed and installed over the last 5-10 years) and tree species selection has changed. The damage related requests are primarily due to infrastructure damage caused by verge tree roots in particular around crossovers, fences and property close to boundaries.

 

The Policy provides a definition between perceived and substantiated risk, to guide officers future decisions in the management and retention of trees on City Land. The Policy provides firm guidelines to City officers and the community to improve the consistency of service delivery.

The Policy sets strategic guidance and direction for the control and management of trees on City Land, specifically for use when dealing with and assessing requests for tree removal and pruning.

OFFICER COMMENT

The City has historically managed trees on City land using a risk based approach applying the Quantified Tree Risk Assessment (QTRA) principles.  These principles see trees managed relevant to the risk they present to property and of course life, with only trees that present a risk being pruned or, in higher risk situations, removed.  Moreover the objective has been to manage street trees to improve the live ability of the district in a number of ways including reducing stormwater run-off, increasing air quality, storing carbon, providing shade, improving habitat / biodiversity and reducing the urban heat-island effects.

 

Officers believe this approach to be appropriate ongoing however have noted an increasing expectation of the community for treeremoval and pruning where application of the risk based principles do not warrant it.  For instance pruning for views and perceived (unsubstantiated) property risks. 

 

Therefore in order to achieve the objectives noted above, and to provide clarity for the community in relation to the City’s approach to tree management, the Policy details the circumstances under which a request to remove a tree will be considered. The Policy also provides guidance on how trees on City Land will be protected from activity that threatens their health and longevity and protection from infrastructure conflict.

 

Statutory Environment

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

 

Relevant Plans and Policies

The officer recommendation aligns with the City of Busselton Property Local Law 2010; City of Busselton Local Planning Policies and Council Policy: Private Works on City Land, including private coastal protection works on City Land.

 

Financial Implications

There are currently no financial implications associated with the officer recommendation, although the Policy is expected to assist in managing increasing demands on operational budgets. Increasing number of tree management requests coupled with the age of trees within established subdivisions is putting pressure on current operational budgets and service delivery timeframes.

 

Stakeholder Consultation

No external stakeholder consultation was required or undertaken in relation to this matter.  Officers did however review relevant policies of a number of other Local Governments including City of Bunbury, City of Joondalup, City of Mandurah and City of Belmont..  All have very similar policies in place.

 

Risk Assessment

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


Options

As an alternative to the proposed recommendation the Council could choose not to adopt the Policy or the Council could seek to modify the Policy.  Officers believe that clearer strategic direction with regards to the management of trees on City land would be of benefit and so recommend Council do adopt a policy.

CONCLUSION

This report presents a proposed Council policy: Tree Management and Retention on City Land to provide greater strategic direction and clarity for the community in relation to tree management.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

The Policy will be implemented immediately following Council adoption.


Council

144

23 March 2022

12.4

Attachment a

Proposed Council Policy: Tree Management and Retention on City Land

 




Council                                                                                      147                                                                23 March 2022

12.5           Policy and Legislation Committee - 2/3/2022 - REVIEW OF COUNCIL POLICY: MEETINGS, INFORMATION SESSIONS AND DECISION MAKING PROCESSES

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

Council Policies

BUSINESS UNIT

Governance Services

REPORTING OFFICER

Governance Coordinator - Emma Heys

AUTHORISING OFFICER

Manager Governance 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   Amended Policy: Meetings, Information Sessions and Decision-Making Processes

Attachment b    Current Policy: Meetings, Information Sessions and Decision-Making Processes

This item was considered by the Policy and Legislation Committee at its meeting on 2/3/2022, the recommendations from which have been included in this report.

COMMITTEE RECOMMENDATION

That the Council adopt the amended Council policy: Meetings, Information Sessions and Decision Making Processes (the Policy) (Attachment A) to replace the current policy (Attachment B).

OFFICER RECOMMENDATION

That the Council adopt the amended Council policy: Meetings, Information Sessions and Decision Making Processes (the Policy) (Attachment A) to replace the current policy (Attachment B).

EXECUTIVE SUMMARY

This report presents an amended Council policy: Meetings, Information Sessions and Decision Making Processes (the Policy) (Attachment A); amended to incorporate principles for the management of Community Access Sessions (CAS). Officers recommend it replace the current policy (Attachment B).

BACKGROUND

A policy in relation to meetings, information sessions and decision making processes policy was first implemented in March 2011 as a review and consolidation of two policy statements. The policy applied to all convened information sessions and formally-constituted meetings involving Councillors of the then Shire of Busselton, held in the course of carrying out the business of the local government.  

 

The policy was reviewed in May 2017, with minor amendments of an aesthetic nature and which did not alter the fundamental principles of the policy.

 

Further to questions and discussions around the recording of Community Access Sessions (CAS) a report was presented to the Policy and Legislation Committee at the meeting of 8 December 2021 with a proposed amended Council policy: Recording and Livestreaming of Council Meetings and Community Access Sessions.  This proposed amended policy incorporated provisions around the audio recording of Community Access Sessions.

In putting forward the amendments officers did however note the informal nature of CAS and that the recording of sessions may not fit with that intent.

 

The Committee resolved not to adopt the proposed amended policy and instead to further consider the processes around the management of CAS and requested that the CEO bring the matter back for discussion at a future Policy and Legislation Committee meeting; which occurred at its meeting of 25 January 2022.  This report presents principles for adoption based on that discussion.

OFFICER COMMENT

Community Access Sessions (CAS) are an informal forum, the purpose being to provide a means for the community to present ideas or discuss matters informally with Councillors. There are no decisions made at CAS and there is currently no requirement for CAS to be minuted in any way or recorded.

 

While CAS are not formal meetings of Council, it is important that they are conducted in a way that is consistent with the principles and objectives of the Local Government Act 1995 in relation to the conduct of business. The Policy has been amended to include key principles / protocols to be applied at CAS.  These include fair and equal opportunity for members of the public to be heard; applying a 5 minute limit to each speaker; and the City’s Behaviour Protocols.

 

Given the informal nature and intent of CAS, the Policy proposes that, as opposed to audio recording CAS, a written record of matters raised will be taken by governance staff, including who presented to Council and on what topics.

 

The rest of the Policy has had minor amendments made to improve readability.

 

Statutory Environment

In accordance with section 2.7(2(b) of the Local Government Act 1995 (the Act) it is the role of the Council to determine the local government policies. The Council does this on recommendation of a Committee it has established in accordance with section 5.8 of the Act.

 

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

 

Relevant Plans and Policies

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

As an alternative to the proposed recommendation the Council could:

1.         Not adopt the amended Policy; or

2.         Adopt the Policy with further amendments.

CONCLUSION

A revised Policy ‘Meetings, Information Sessions and Decision-Making Processes’ is presented for Council’s endorsement.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

If endorsed, the Policy will be placed on the City’s website within one week of Council adoption and

the practice continued at the start of the 2022 Community Access Sessions.


Council

150

23 March 2022

12.5

Attachment a

Amended Policy: Meetings, Information Sessions and Decision-Making Processes

 




Council

153

23 March 2022

12.5

Attachment b

Current Policy: Meetings, Information Sessions and Decision-Making Processes

 




Council                                                                                      156                                                                23 March 2022

12.6           Policy and Legislation Committee - 2/3/2022 - REVIEW OF CUSTOMER SERVICE CHARTER

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

Council Policies

BUSINESS UNIT

Customer Service

REPORTING OFFICER

Customer Service Coordinator - Brioney McLean

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   Proposed: Customer Experience Charter

Attachment b    Current: Customer Service Charter

This item was considered by the Policy and Legislation Committee at its meeting on 2/3/2022, the recommendations from which have been included in this report.

COMMITTEE RECOMMENDATION

That the Council rescind the current Customer Service Charter (Attachment B) and endorse the Customer Experience Charter as an administrative document (Attachment A).

OFFICER RECOMMENDATION

That the Council rescind the current Customer Service Charter (Attachment B) and endorse the Customer Experience Charter as an administrative document (Attachment A).

EXECUTIVE SUMMARY

This report presents a revised Customer Experience Charter (the Charter) (Attachment A). The existing Customer Service Charter (Attachment B) has been revised as part of the City’s review of its Corporate Documents and this report recommends that it be rescinded and that the new Charter be endorsed by Council as an administrative document.

BACKGROUND

Council adopted the Customer Service Policy 018 in 2010 to outline general standards of behaviour expected of all persons appointed by the City of Busselton.

 

In June 2017 Council resolved to rescind the Policy and adopt the Customer Service Charter which included quantitative targets for consistent and prompt service delivery.

 

In August 2017 the CEO commissioned a high level independent review of the City’s governance systems – the Governance Systems Review (GSR).   The GSR recommended that the City’s policy and procedure framework should be reviewed such that Council Policies are focused on higher level objectives and strategies and do not deal with operational matters, employee matters, or other matters which are the responsibility of the CEO.  This same principle is considered applicable to the review of the current Customer Service Charter.


OFFICER COMMENT

The content of the Charter reflects general standards of customer service expected of all persons appointed or contracted by the City.  The proposed Charter is significantly different to the existing Customer Service Charter. Research conducted of peer Councils, both metropolitan and regional, indicates that the brochure style format is more accessible for the community.

 

The revised content of the Charter includes reference to the current City of Busselton Corporate Values and how these values will be demonstrated in the services provided by the City. Customer service standards are becoming less quantitative with greater emphasis on the quality of our service. Customer experience encompasses the quality of customer service the City provides, the accessibility of our information, the responsiveness of our actions and the commitment for continuous improvement through feedback.

 

The Charter informs our customers as to how they can assist the City to achieve our service commitments, subsequently supporting positive relationships between the City and the Community.

 

Officers feel that the content of a customer service charter would be more appropriately contained in an administrative document, as it governs matters which are the responsibility of the CEO (that is, management of staff). Being an administrative document also allows for amendments as required to be made by the Chief Executive Officer. Officers recognise the importance of a customer service charter as well as the need for it to be highly visible with the public and Councillors.

 

Statutory Environment

In accordance with section 2.7(2(b) of the Local Government Act 1995 (the Act) it is the role of the Council to determine the local government policies. The Council does this on recommendation of a Committee it has established in accordance with section 5.8 of the Act.

 

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, although officers did undertake a review of other local government customer service charters

 

Risk Assessment

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

 

Options

As an alternative to the proposed recommendation the Council could:

1.    choose not to rescind the current charter; or

2.    make amendments to the proposed Customer Experience Charter.


CONCLUSION

The Customer Service Charter has been reviewed by officers and was found to be of continuing importance and relevance as a statement of commitment to Customer Service.

 

Following this review it is recommended that the current Customer Service Charter be rescinded and the proposed Customer Experience Charter be endorsed as an administrative document, with the CEO able to review and amend the document as required.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

The Customer Experience Charter will be published to the City’s website within one week of Council’s adoption.


Council

158

23 March 2022

12.6

Attachment a

Proposed: Customer Experience Charter

 



Council

166

23 March 2022

12.6

Attachment b

Current: Customer Service Charter

 









Council                                                                                      172                                                                23 March 2022

12.7           Finance Committee - 9/3/2022 - 2021/22 MID-YEAR BUDGET REVIEW

STRATEGIC GOAL

6. LEADERSHIP Visionary, collaborative, accountable

STRATEGIC OBJECTIVE

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

SUBJECT INDEX

Budget Planning and Reporting

BUSINESS UNIT

 Financial Services

REPORTING OFFICER

Manager Financial Services - Paul Sheridan

AUTHORISING OFFICER

Director Finance and Corporate Services - Tony Nottle

NATURE OF DECISION

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

VOTING REQUIREMENT

Absolute Majority

ATTACHMENTS

Attachment a   Detailed Budget Review Schedule

Attachment b    Financial Activity Statement YTD December 2021

Attachment c    Capital Construction & Acquisition Report YTD December 2021

This item was considered by the Finance Committee at its meeting on 9/3/2022, the recommendations from which have been included in this report.

COMMITTEE RECOMMENDATION

That the Council, pursuant to Regulation 33A of the Local Government (Financial Management) Regulations, adopts the 2021/22 Annual Mid-Year Budget Review as presented within this report.

OFFICER RECOMMENDATION

That the Council, pursuant to Regulation 33A of the Local Government (Financial Management) Regulations, adopts the 2021/22 Annual Mid-Year Budget Review as presented within this report.

EXECUTIVE SUMMARY

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

BACKGROUND

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

 

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

 

This report, based on the City’s financial performance for the financial year to date as at 31 December 2021, has been compiled to fulfil the statutory reporting requirements of the Local Government Act 1995 and associated Regulations in respect of the annual budget review process.


OFFICER COMMENT

The budget review process was conducted throughout January and February 2022, via a series of workshop meetings with each of the manager/coordinator groups across the entire organisation (14 in total).

 

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

 

The attached Detailed Budget Review Schedule (Attachment A), outlines the estimated variations from the existing amended budget position on a line by line basis, showing an estimated total positive net variance to the budgeted net current position of approximately $1.16M.

 

A copy of the Financial Activity Statement YTD December 2021 (“FAS”) has also been attached (Attachment B), including columns that show the net surplus / (deficit) variance totals for each Nature & Type category.

 

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

 

Affected FAS Categories by Nature &Type

Nature & Type Code

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

 

 

$

Revenue from Ordinary Activities

 

 

Rates

10

100,000

Operating Grants, Subsidies and Contributions

21

(52,070)

Fees & Charges

35

900,390

Other Revenue

40

166,857

Interest Earnings

45

26,544

 

 

1,141,721

Expenses from Ordinary Activities

 

 

Employee Costs

55

516,978

Materials & Contracts

60

882,884

Utilities (Gas, Electricity, Water etc.)

65

75,200

Insurance Expenses

85

5,700

Other Expenditure

90

5,557,209

 

 

7,037,971

 

 

 

Operating Surplus / (Loss)

 

8,179,692

 

 

 

Capital Revenue & Expenditure

 

 

Non-Operating Grants, Subsidies and Contributions

26

(5,186,385)

Capital Expenditure

99

5,567,787

Proceeds from Sale of Assets

50

(3,690)

Proceeds from New Loans

N/A

(4,000,000)

Advances to Community Groups

N/A

4,000,000

Combined net Impact from reserves & restricted

N/A

(7,401,598)

 

 

 

Net Current Position - Surplus / (Deficit)

 

1,155,806

 

Attachment A lists the details that make up each of the lines in the table above, however some high level commentary around the most significant factors contributing to the more material variances in the table above is provided below.

 

Rates

Management forecasts an increase of rates revenue in excess of budget by $100K, largely due to a surge in interim rating due to development activity.

 

Operating Grants, Subsidies and Contributions

The negative variance of $52K within this category mainly relates to;

·        Reimbursement - legal fees $45K;

·        Grants commission - general purpose grant ($13) K;

·        Grants commission - local roads grant $66K;

·        Reimbursement - insurance recovered ($50)K;

·        Community development grant ($66)K;

·        Hospitality worker training and marketing grant ($100)K (see Materials and contracts for offset);

·        Reimbursement – insurance recovered $20K;

 

Fees & Charges

Of the $900K forecast increase in fees and charges, $773K will remain in reserves; resulting in only a $127K impact on the net current position which is not material. Identified major variances in this category relate to the following;

·        Cemetery fees $134K;

·        Swimming lessons, Program cancellations due to staff shortages ($80)K;

·        GLC Membership fees ($80)K;

·        Busselton jetty tourist park fees $330K, (will form part of end of year reserve reconciliation);

·        Airport landing and take-off fees $260K, (will form part of end of year reserve reconciliation);

·        Airport car parking income $208K, (will form part of end of year reserve reconciliation);

·        Airport screening fees ($227)K, (will form part of end of year reserve reconciliation);

·        Statutory planning development application fees $100k;

·        Waste tipping fees $80K, (will form part of end of year reserve reconciliation);

·        Unbudgeted recovery of various utilities charges from tenants/lessees of certain City facilities due to new contractual arrangements.

 

Other Revenue

The projected positive variance of $167K is mainly due to much higher sales of scrap materials from the waste facilities.  Almost all of this value (i.e. $150K) is offset against the transfers to the waste reserve, so the impact on the Municipal net current position is negligible (i.e. $17k).

 


Interest Earnings

The marginal increase in return on City deposits has an effect on this year’s financial position in that interest earnings will achieve budget levels. Current projections are as follows:

 

Budgeted

Projected

Surplus /

 

June '22

June '22

(Deficit)

Overdue Payment Interest

150,000

160,000

10,000

Municipal Funds

75,000

51,648

(23,352)

Reserve Funds

125,000

164,896

39,896

Total

350,000

376,544

26,544

 

Original 2021/22 budget projections were conservative, hence it is anticipated that the end of year results will be achieved.

 

Employee Costs

There is an estimated net savings against budget to 30 June of approximately $517K, with $179K of that funded from reserves, therefore estimated net muni savings of $338K is predicted.

 

Materials & Contracts

This category indicates a potential savings to budget of $883K.  This is reduced by the fact that a net amount of $394K of these savings would have been funded from reserves, therefore the transfer from reserves back into muni is also reduced by this amount.  This leaves a forecast net savings of $430K.

 

Utilities

Savings of approximately $75K are forecast due to savings on the landline charges in the main administration building, mobiles and internet, as well as forecast savings on the electricity accounts across some of the City facilities and buildings.

 

Insurance Expenses

Minor saving of $6K is anticipated at years end for machinery break down insurance. All other insurance categories are in line with budget estimates.

 

Other Expenses

Of the $5.557M forecast savings, $5.492M will remain in reserves, resulting in a $65K in variance to Net current position.  Of this, $3M relates to Busselton Jetty AUDC Contribution and $2.3M relates to the BMRRA.

 

Non-Operating Grants, Subsidies and Contributions

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.  Also, the non-recognition of funds already physically received means that they will remain in either a reserve or restricted asset account.

 

Capital Expenditure

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

 

Of the total annual amended budget of $65M, it is estimated that approximately $5.6M will still be in progress come 30 June 2022, and will need to be carried forward to be re-listed (and/or re-scoped), in the 2022/23 budget.

 

 

 

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

 

Description

2021/22 Actual Spend to 30/12/21      (B)

2021/22
Amended Budget      (A)

Remaining Budget        (A - B)

Forecast Under / (overspend) to 30/6/22

Land

2,599

50,000

47,401

25,000

Buildings

556,330

22,752,632

22,196,302

61,485

Plant & Equipment

577,445

2,890,000

2,312,555

0

Furniture & Office Equipment

147,665

828,800

681,135

624

Roads*

2,763,348

12,523,430

9,760,082

1,337,909

Bridges**

698,230

6,849,989

6,151,759

2,218,000

Car Parks

448,262

1,960,600

1,512,338

424,280

Footpath and Cycleway

506,348

1,944,200

1,437,852

414,129

Parks, Gardens & Reserves:

0

0

0

0

-      Busselton Jetty

114,465

817,550

703,085

0

-      Coastal and Boating

80,016

1,216,800

1,136,784

423,239

-      Waste Services

264,329

2,292,500

2,028,171

0

-      Townscapes & Vasse River

35,748

1,779,067

1,743,319

525,000

-      Other P&G Infrastructure

3,442,858

8,476,925

5,034,067

110,000

Drainage

13,090

311,605

298,515

0

Airport Industrial Parks

81,197

365,084

283,887

28,120

 

9,731,930

65,059,182

55,327,252

5,567,786

 

* Sugarloaf Road $1M, and Boallia Road $400K are the two materially significant projects in this class that have been identified as being carried forward.

** Timing is heavily influenced by MRWA. Bridgeworks not expected to be completed by end of year are Layman Road Bridge 3438 $234K, Kaloorup Road Bridge $975K, and Boallia Road Bridge $1.009M.

 

These carry-forwards (as identified in the table above) are entirely funded from reserves, restricted funds, grants, and where approved loan drawdowns.  As such, there will be a nil impact on the net muni position at year end.

 

General Commentary

The ongoing effects of the COVID pandemic continue to impact the City’s operations. For example, the tightening of the employment market has resulted in difficulties in recruiting staff to fill vacancies, resulting in savings on salaries and wages. Conversely, rising fuel and supply prices are increasing costs.

 

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

 

Statutory Environment

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

 

Regulation 33A.                Review of budget

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

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

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

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

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

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

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

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

             *Absolute majority required.

 

Relevant Plans and Policies

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

 

Financial Implications

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

 

Stakeholder Consultation

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

 

Risk Assessment

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

 

Options

As an alternative to the proposed recommendation, the Council could not adopt the budget review report. If Council is intends to consider this option, officers can assist on the drafting of a suitable alternative motion for adoption before the statutory due date of 30 April 2022.

CONCLUSION

Despite uncertainty in the current economic climate, planned and budgeted works activities, as at December 2021 for the City’s overall financial performance is considered satisfactory.  Projections resulting from the budget review process during January and February in consultation with all manager/co-ordinator groups across all parts of the City, indicated a potential positive impact on closing net current position as at 30 June 2022, in the order of approximately $1.16M.   

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Officers will inform the Department of the Council’s consideration by 30 April 2022.

 


Council

177

23 March 2022

12.7

Attachment a

Detailed Budget Review Schedule

 






Council

178

23 March 2022

12.7

Attachment b

Financial Activity Statement YTD December 2021

 


Council

182

23 March 2022

12.7

Attachment c

Capital Construction & Acquisition Report YTD December 2021

 





Council                                                                                      203                                                                23 March 2022

12.8           Finance Committee - 9/3/2022 - FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 31 JANUARY 2022

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   Statement of Financial Position - Period Ended 31 January 2022

Attachment b    Loan Schedule - January 2022

Attachment c    Investment Report - January 2022

This item was considered by the Finance Committee at its meeting on 9/3/2022, 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 31 January 2022, pursuant to Regulation 34(4) of the Local Government (Financial Management) Regulations 1996.

OFFICER RECOMMENDATION

That the Council receives the statutory financial activity statement reports for the period ending 31 January 2022, 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 January 2022.

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 January 2022

The Statement of Financial Activity (FAS) for the year to date (YTD) shows an overall Net Current Position of $19.8M as opposed to the budget of $189K. This represents a positive variance of $19.6M 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

 

1.14%

814,489

(127,524)

1.    Other Revenue

359,024

193,212

414,950

85.82%

165,812

(16,173)

Expenses from Ordinary Activities

 

7.63%

3,842,105

(414,285)

2.    Materials & Contracts

(9,399,204)

(10,636,502)

(20,245,296)

11.63%

1,237,298

(521,002)

3.    Other Expenditure

(1,918,522)

(3,715,045)

(9,685,100)

48.36%

1,796,523

141,306

4.    Non-Operating Grants, Subsidies and Contributions

1,425,277

8,519,155

34,850,687

(83.27%)

(7,093,878)

509,229

Capital Revenue & (Expenditure)

 

42.49%

19,625,360

3,102,719

5.    Land & Buildings

(609,306)

(12,650,332)

(22,802,632)

95.18%

12,041,026

1,838,070

Plant & Equipment

(752,922)

(1,771,000)

(2,890,000)

57.49%

1,018,078

304,523

Furniture & Equipment

(175,090)

(549,191)

(828,800)

68.12%

374,101

(27,426)

Infrastructure

(9,613,831)

(20,058,246)

(38,537,750)

52.07%

10,444,414

285,203

6.    Proceeds from Sale of Assets

0

547,561

776,071

(100.00%)

(547,561)

(139,934)

7.    Proceeds from New Loans

10,025,000

5,450,000

15,450,000

83.94%

4,575,000

4,550,000

8.   Total Loan Repayments – Principal

(1,615,120)

(1,848,193)

(3,839,418)

12.61%

233,073

(25,000)

9.    Advances to Community Groups

(25,000)

(5,450,000)

(5,450,000)

99.54%

5,425,000

5,450,000

10.  Transfer to Restricted Assets

(17,110,256)

0

0

(100.00%)

(17,110,256)

(10,135,762)

12.  Transfer from Restricted Assets

3,054,422

0

0

100.00%

3,054,422

397,189


Revenue from Ordinary Activities

In total, revenue from Ordinary Activities is very close to budget at only 1.14% ahead YTD.  There is however two material variance items requiring comment.

                                   

1.      Other Revenue

Ahead of YTD budget by $166K, or 85.8%, 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

49,890

18,420

31,470

170.85%

(780)

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

17,967

2,887

15,080

522.33%

(6,940)

10625

Art Geo – Sale of Artworks

8,893

 -

8,893

(100.00%)

(8,833)

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 and January’s sales due to Art Geo Administration moving premises, plus staff being on leave.

Engineering and Works Services

224,961

96,291

128,670

133.63%

(4,916)

G0030 & G0031

Busselton & Dunsborough  Transfer Station – Sale of Scrap Materials

221,026

87,218

133,808

153.42%

1,421

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 $3.8M, or 7.6%, less than expected when compared to the budget YTD as at January. 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 $1.24M.  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

983,078

1,329,084

346,006

26.0%

12,451

10105

Business Systems Improvement Team

 -

18,522

18,522

100.0%

2,646

Consultants to support the change of the chart of accounts have now been engaged and expenditure now incurred. The budget will be utilised over coming months.

10151

Rates Administration

134,313

165,515

31,202

18.9%

1,312

Variation between YTD actual and budget is mainly due to:

·        Postage $15.8K under budget due to 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

20,364

54,107

33,743

62.4%

1,200

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 cash flows, rather than accrual accounting).

10250

Information & Communication Technology Services

509,863

586,750

76,887

13.1%

(13,055)

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.

10360

Customer Service

8,834

19,662

10,828

55.1%

1,502

Most of the variance is due to a lower spend on stationery. Difficult to predict monthly spend due to orders being made on an ‘as required’ basis.

10500

Legal and Compliance Services

53,006

71,834

18,828

26.2%

(25,843)

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

17,375

65,627

48,252

73.5%

6,564

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

37,830

98,467

60,637

61.6%

6,750

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.  Property inspections are to be undertaken at which time items requiring maintenance will be identified.

R0288

Locke Estate

4,281

15,169

10,888

71.8%

1,317

Likely spend from remaining budget will be between $4-8k depending on whether and when sites are leased.

R0305

Creekview Road Reserve 12492 (Lot 501)

 -

14,572

14,572

100.0%

296

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

975,291

1,564,853

589,562

37.7%

(108,958)

10380 & 10381

Busselton & Dunsborough Libraries

56,331

119,072

62,741

52.7%

6,020

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)

51,673

51,828

100.3%

14

YTD expenses are well below Budget figures as the Consultancy works for the Bovell Ovals Masterplan and Dunsborough Country Club Masterplan are only in the early stages. It is expected that the work should be completed by years end.

10543

Community Development

926

100,075

99,149

99.1%

39,861

This relates to the Strengthening Communities program funded by Lotterywest. There were delays in the program development, and procurement has not yet taken place. It is anticipated that this program will be now be launched during February with bulk of expenditure to occur through February and March.

10590

Naturaliste Community Centre

28,676

52,432

23,756

45.3%

7,054

The under spend here is as a result of Non-Capital Furniture & Office Equipment, Contractors and Licence Fees – this has been due to controlled spending and invoice timing.  There was also an increased budget in F&OE this year is as result of grant monies received, which are planned to be expended by the end of the financial year.

10600

Busselton Jetty Tourist Park

271,461

344,663

73,202

21.2%

(5,371)

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

41,012

60,552

19,540

32.3%

4,814

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.  Also, some activities were postponed or deferred due to the relocation.

10630

Economic and Business Development Administration

20,985

93,353

72,368

77.5%

(1,637)

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 later in the financial year.


 

10900

Cultural Planning

3,495

22,098

18,603

84.2%

4,736

Awaiting confirmation of further grant monies before engagement of consultants.

10980

Other Law, Order & Public Safety

165,562

 -

(165,562)

(100.0%)

(165,562)

The variance to budget represents the payment of the annual contribution to the Surf Life Saving Service a month earlier than originally forecast.

11151

Airport Operations

121,245

432,040

310,795

71.9%

12,901

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 (due to delay in commencement of RPT services).

B1361

YCAB (Youth Precinct Foreshore)

30,995

49,967

18,972

38.0%

(5,204)

Past expenses had been allocated to the old Section of 330 and not 332. A correcting journal has been organised in February.

Planning and Development Services

452,964

474,487

21,523

4.5%

79,205

10801

Sustainability

109,421

79,793

(29,628)

(37.10%)

0

The Environmental Management Business Unit has been restructured mid-way through the financial year. A number of budget realignment journals are required, but have not yet been fully processed. This is causing reporting misbalances between various accounts and will be resolved in the coming months. The variance of $29.6k is also partly attributable to a timing difference within the consultancy natural account relating to the river sediment project.

10805

Planning Administration

5,707

24,448

18,741

76.7%

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

39,719

91,898

52,179

56.8%

10,092

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

60,100

(19,100)

(31.8%)

200

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

178,575

35,905

(142,670)

(397.4%)

(11,929)

The YTD variance is in line with DFES Mitigation Activity Grant Funding of $500,000 being received and spent over the 2021/22 FY. YTD Budget does not reflect the grant funding received.

10950

Animal Control

16,983

31,234

14,251

45.6%

5,792

The variance YTD relates to the delivery of a pallet of dog bags ($6k) late January, not processed and paid until February.  There are also savings due to no Fines Enforcement Referrals YTD.


 

Various

Bushfire Brigades

49,000

23,276

(25,724)

(110.5%)

(9,849)

Funding is from DFES ESL Local Government Grant Scheme funding and is spent according to operational needs of the City’s Bushfire Brigades and SES. Spending will be above historical levels due to a busier than average 2021/22 fire season.

Engineering and Works Services

6,987,550

7,264,583

277,033

3.8%

(504,036)

10830

Environmental Management Administration

62,572

140,475

77,903

55.5%

(5,894)

The Environmental Management Business Unit has been restructured mid-way through the financial year. A number of budget realignment journals are required, but have not yet been fully processed. This is causing reporting misbalances between various accounts and will be resolved in the coming months.

11170

Meelup Regional Park

71,455

153,638

82,183

53.5%

(18,099)

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. $55K in works have been committed representing works that are now underway or will commence shortly.  

11160, 11161 & 11162

Busselton Jetty

21,450

10,935

(10,515)

(96.2%)

(5,826)

In October a compressor and ducted heater was replaced in the UWO. $21k of the annual budget totalling $54k has now been outlaid. This variance is due to timing only. Hoping to claim some of these cost through and insurance claim.

12600

Street & Drain Cleaning

189,517

224,615

35,098

15.6%

(4,883)

The budget was entered based on historical expenditure and service levels determined by that figure, patterns averaged over the previous three financial years. All of $465k annual budget has been committed based on scheduled maintenance plans, thus the YTD variance is attributable to timing only.

12620 & 12621

Rural & Urban Tree Pruning

231,763

464,301

232,538

50.1%

(43,420)

This year’s rural tree pruning budget of $352K includes $153K carried over from the previous year. Rural tree pruning works are ordinarily completed in the first half of the year however storm damage clean-up took priority this year. Rural road verges to be pruned are prioritised based on factors including the period of time since last pruned, inspections, volume and types of traffic and many other considerations. Works will now be scheduled outside the fire season.

Various

Building Maintenance

882,793

787,432

(95,361)

(12.1%)

(48,222)

The YTD building maintenance budget variance is attributable primarily to timing only. Costs associated with the Busselton Depot Building totalling $47k YTD are $15k over the YTD but remain $11k under the annual budget. Costs associated with the Micro-Brewery - Public Ablution totalling $24.5k YTD are over the zero YTD budget but also remain under the $43k annual budget. These two variances along account for 40% of $95k variance.   

Various

Waste Services

1,290,526

1,526,306

235,780

15.4%

(42,274)

$135K of the variance is associated with concrete crushing and a further $73K is associated with green waste processing, both planned for later in the financial year. $87K of the underspend to budget is attributable to External Restoration Works associated with the Rendezvous Road contaminated sites matter while another $38K of the variance is associated with postponement of the FOGO trial; where no costs have being incurred.


 

Various

Roads Maintenance

730,720

498,619

(232,101)

(46.5%)

(79,251)

This budget was entered monthly based on historical expenditure patterns averaged out over the previous three financial years. To this end some of this variance is due to timing. As a comparison, total costs to the end of Jan 22 are only $20k more than at the same time last year. $75k of the variance is attributable to unbudgeted storm damage contractor clean-up costs associated with the City’s road network.  These costs are anticipated to moderate somewhat as a large majority of the City’ s Construction and Maintenance crews have switched primarily onto Capital works.

Various

Reserves, Parks & POS Maintenance

1,099,363

1,227,509

128,146

10.4%

(36,848)

The underspend to budget YTD on City Parks and Reserves is linked to numerous Cost Codes including;

•          Dunsborough Lakes Sporting Precinct Ovals / Turf as project not yet handed over by Major Projects. -$58k under budget YTD.

•          Busselton Foreshore Skate Park. -$32k under due to scheduled non-recurrent concrete maintenance repair not yet undertaken.

•          Busselton Foreshore Area -$17k under expended as scheduled works to increase after Easter and Events.

 

3.      Other Expenditure  

$1.8M, or 48.3%, 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

$

Executive Services

59,247

48,419

(10,828)

(22.4%)

(3,854)

10001

Office of the CEO

31,393

48,419

17,026

35.2%

(3,885)

The underspend relates to the inter-council initiatives budget line item, which has not been spent to date. 

10011

Emergency Contingency Costs (Other)

27,855

 -

(27,855)

(100.0%)

(5,527)

There is no budget for this particular area, as it is used purely to capture specific unforeseen emergency related costs.  YTD actuals represent the costs associated with the forgone rental opportunities at the YCAB, whilst it is being used as a COVID vaccination clinic i.e. effectively tracking this part of the City’s contribution to the vaccination effort.  As this a non-cash “book entry”, there is an offsetting revenue amount shown in Venue Hire income for the YCAB facility.

Finance and Corporate Services

762,818

715,639

(47,179)

(6.6%)

(142,318)

10000

Members of Council

393,158

451,658

58,500

13.0%

(127,578)

Timing related variances with underspends in primarily member allowances and sitting fees ($35k), plus underspends in reimbursements and training expenses due to change of council members.

10151

Rates Administration

17,650

35,637

17,987

50.5%

7,522

The budget is for rating valuations in relation to the interim rating of new properties.  It was set as an even monthly spread, as historically these activities are random (e.g. dependant on building completions), and can’t be predicted.  As such, there will always be timing variances.

10200

Financial Services

45,029

 -

(45,029)

(100.0%)

(11,609)

The budget for the 5 yearly valuation of the City’s Land & Buildings was removed, as at the time of developing the budget it was believed that a qualified in-house valuer would be able to conduct this service. 


 

10221, 10227, 10228, 10229 & 10230

Finance & Borrowing Programs 4, 11, 12, 13 & 14

197,054

103,082

(93,972)

(91.2%)

6,123

The Government Guarantee levy on the City’s loans as collected by the WA Treasury Corp payable for the period 1 January to 30 June 2021 was levied in July 2021. This invoice should have been posted to June via an accrual, however it was not completed and instead included in July’s expenses. Accordingly there will be three payments included in 2021/2022’s reports.

10511

Community Assistance Program (Governance)

 -

16,666

16,666

100.0%

 -

Funds for the You Choose Program yet to be allocated.  Will be allocated in May / June

Community and Commercial Services

888,566

2,738,908

1,850,342

67.6%

531,289

10532

BPACC Operations

432

25,000

24,568

98.3%

11,718

BPACC operational activity will not commence until 2023.

10533

Welfare / Senior Citizens

67,561

43,398

(24,163)

(55.7%)

(821)

This is the annual agreed grant paid to the Busselton Senior Citizens centre which is paid quarterly on invoice from the centre.  A further invoice (quarterly payment) has recently been approved.

10536

School Chaplaincy

 -

41,400

41,400

100.0%

41,400

This is the annual grant to Youthcare which is paid on invoice. An Invoice for the full amount was approved in December.

10543

Community Development

80,539

126,735

46,196

36.5%

(56,584)

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.  Round 4 has now closed and applications are being assessed.  Timing is largely dependent on CAP Applications received from community groups.

10558

Events

477,403

829,091

351,688

42.4%

155,292

We are waiting on a number of events to invoice us for event sponsorships or services provided totalling over $175K, including for events such as Ironman, Jetty Swim and many others.  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.

10630

Economic and Business Development Administration

84,545

95,179

10,634

11.2%

8,208

YTD actual is below target with due to expenditure for advertising, valuations and cruise ship visitor servicing activities not being completed

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

1,681

1,342,232

1,340,551

99.9%

381,671

Marketing activities continue to be delayed due to the postponement of Jetstar RPT services as a result of COVID restrictions etc.

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.


 

Planning and Development Services

60,526

83,943

23,417

27.9%

27,059

10805

Planning Administration

 -

15,000

15,000

100.0%

15,000

The Planning item relates to the Façade Refurbishment Program which the City normally runs on an annual basis.  Due to staff shortages and other priorities this year, it’s not likely that the $30K budgeted will get spent at all.

Engineering and Works Services

147,365

128,136

(19,229)

(15.0%)

(18,184)

B1223

Micro Brewery - Public Ablution

 -

60,000

60,000

100.0%

 -

The full contribution of $120K to the ablutions, in two instalments, was made in the 20/21 financial year, however due to the lateness of the second $60K instalment, it was inadvertently included again in the 21/22 year budget unnecessarily.

G0042

BTS External Restoration Works

96,812

25,000

(71,812)

(287.2%)

(616)

Rendezvous Road Refuse site remedial works.

 

4.     Non-Operating Grants, Subsidies & Contributions  

The negative variance of $7.1M 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

1,364,277

8,338,779

(6,974,502)

(83.6%)

(1,665,471)

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%

 -


 

C3116

Dawson Park (Mcintyre St Pos) – Developer Cont. Utilised

71,116

 -

71,116

100.0%

71,116

C3211

Tulloh St (Geographe Bay Road) - POS Upgrade – Developer Cont. Utilised

25,043

 -

25,043

100.0%

25,043

C3214

Kingsford Road - POS Upgrade – Developer Cont. Utilised

71,437

 -

71,437

100.0%

71,437

C3215

Monash Way - POS Upgrade – Developer Cont. Utilised

71,939

 -

71,939

100.0%

71,939

C3216

Wagon Road - POS Upgrade – Developer Cont. Utilised

81,341

 -

81,341

100.0%

81,341

C3217

Limestone Quarry - POS Upgrade – Developer Cont. Utilised

119,687

 -

119,687

100.0%

119,687

C3218

Dolphin Road - POS Upgrade – Developer Cont. Utilised

90,634

 -

90,634

100.0%

90,634

C3219

Kingfish/ Costello - POS Upgrade – Developer Cont. Utilised

33,551

 -

33,551

100.0%

33,551

C3220

Quindalup Old Tennis Courts Site - POS Upgrade – Developer Cont. Utilised

34,480

 -

34,480

100.0%

34,480

C3241

Vasse River - Ongoing Restoration of River Habitat – State Capital Grant

 -

90,000

(90,000)

(100.0%)

(90,000)

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)

 

5.      Capital Expenditure  

As at 31st January 2022, there is an underspend variance of 68.2%, or $23.9M, in total capital expenditure, with YTD actual at $11.2M against the YTD budget of $35M. 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

29,169

26,570

91.1%

4,167

10610

Property Services Administration

2,599

29,169

26,570

91.1%

4,167

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

606,707

12,621,163

12,014,456

95.2%

1,833,903

B9614

Dunsborough Lakes Sporting Precinct-Pavilion /Changeroom Facilities

10,425

279,167

268,742

96.3%

204,167

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 is scheduled in February to review and discuss.

B9012

Civic and Administration Building Replacement of Cladding

1,004

60,000

58,996

98.3%

20,000

Cladding replacement only commenced in January, with planned completion toward the end of February and associated billing from the supplier to follow after that.

B9300/1/2

Aged Housing

Capital Improvements

35,250

143,700

108,450

75.5%

 -

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.

B9538

Weld Theatre

 -

26,000

26,000

100.0%

26,000

The Weld Theatre upgrade works will be undertaken as part of the Performing Arts Centre construction. 


 

B9591

Performing Arts Convention Centre

40,054

10,745,168

10,705,114

99.6%

1,516,603

The contract for construction was awarded to Broad Constructions in late January. Broad took full site possession at the end of January and have commenced investigative works. Unspent budget at June 30 will be carried over into the following financial year.

B9596

GLC Building Improvements

75,167

142,568

67,401

47.3%

(7,168)

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

B9605

Energy Efficiency Initiatives (Various Buildings)

90,791

137,910

47,119

34.2%

 -

Works planned for commencement have encountered delays pending Western Power applications and approvals. Works programmed to be completed by the end of the financial year.

B9610

Old Butter Factory

17,991

6,000

(11,991)

(199.8%)

2,000

The YTD overspend is due the retention monies owing to the contractor on final completion of project.

B9611

Smiths Beach

New Public Toilet

 -

250,000

250,000

100.0%

 -

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%

 -

RFQ for installation of lights awarded with works to commence in March 2022.

B9613

GLC CCTV Installation

29,921

10,000

(19,921)

(199.2%)

10,000

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)

43,200

43,695

101.1%

14,400

Delays due to contractor availability, these works will be re listed into next financial year.

B9616

Buildings Asset Management Plan High Use Allocation

73,133

60,000

(13,133)

(21.9%)

9,203

Variance due to timing of works.

B9617

Buildings AMP Renewal Allocation - Meelup Ablution

7,389

80,000

72,611

90.8%

39,997

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

15,740

 -

(15,740)

(100.0%)

(136)

Works to commence March 2022 

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 (in receivership), for works completed has not yet been received.

B9720

BMRA Hangars

 -

210,000

210,000

100.0%

 -

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%

 -

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

Plant & Equipment

752,922

1,771,000

1,018,078

57.5%

304,523

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 April.

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 April.

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%

 -

Vehicle not yet ordered.

11107

Engineering Services Design

 -

140,000

140,000

100.0%

 -

Survey equipment and 2 x vehicles ordered, 1 x vehicle delivered in January but not paid for until February, survey equipment and 1 x vehicle expected to be delivered and paid for in February.

11151

Airport Operations

 -

15,000

15,000

100.0%

 -

Slasher (tractor mounted) not yet ordered.

11401

Depot 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.

11403

Plant Purchases (P11)

127,186

200,000

72,814

36.4%

62,976

An RFQ for a light truck is in progress.


 

11404

Plant Purchases (P12)

88,453

515,000

426,547

82.8%

241,547

2 x light trucks not yet ordered, and an RFQ is progress for a new grader.

11500

Operations Services Administration

 -

40,000

40,000

100.0%

 -

Vehicle ordered, not yet delivered.

Furniture & Office Equipment

175,090

549,191

374,101

68.1%

(27,426)

10250

Information & Communication Technology Services

100,279

220,891

120,612

54.6%

(12,704)

Underspend is due to not yet ordering ICT asset replacement items. This is due to be ordered in the coming months though actual delivery may not occur 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 over the forecast budget. The tender was not awarded and it was agreed at the November MERG meeting to restructure the tender with options. The tender is with Legal Services to assist to finalise and will be reissued in February.

10590

Naturaliste Community Centre

16,326

43,300

26,974

62.3%

 -

The budget represents a carry-over from 20/21 for the purchase of replacement fitness equipment.  Order for fitness equipment will be placed in February.  Fencing purchase of $8k was moved out to infrastructure, increasing the variance further.

B1000

Administration Building- 2-16 Southern Drive

 -

14,000

14,000

100.0%

 -

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%)

 -

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

9,613,831

20,058,246

10,444,414

52.1%

285,203

Various

Roads

3,708,071

6,039,930

2,331,859

38.6%

(193,099)

Many road construction projects are now underway.  Impacting this increasing variance through to June will be the outcome from discussions with Council in September/October 2021 where it was decided that the current capital works program would be spread over 18 months extending into the 2022/23 financial year.  To this end, some projects that were to be contracted this financial year have been put on hold given the state of the economy, availability of contractors and increased costs.

•          32% of the YTD variance valued at $746k is associated with the Regional Road Safety Program Chapman Hill Road project that has an approved Tender and is planned to commence mid to late March after Kaloorup works have been completed.

•          24% of the YTD variance valued at $562k is associated with the Peel Terrace/ Queen street roundabout renewal works which have now commenced.

•          25% of the YTD variance valued at $575k is associated with both the Sugarloaf Road upgrade that has been rescheduled to the 2022/23 financial year and major works on the Bussell Highway that are currently in progress.

 

•          9% of the YTD variance valued at $215k being a 1000m section of Boalia Road reconstruction has also been rescheduled to the 2022/23 financial year due to environmental approval requirements that have yet to be resolved.

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, which is typically at the end of the financial year.

Various

Car Parks

542,098

1,549,157

1,007,059

65.0%

34,461

79% 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 has now been awarded and site works have now commenced and are on schedule.

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

•          Dunsborough Chieftain Crescent Carpark Extension $69.8k annual budget $240k.

•          Forth Street Groyne Carpark $46k annual budget $53k.

Various

Footpaths & Cycleways

538,797

1,108,632

569,835

51.4%

142,544

23% of the YTD variance valued at $123K 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 totalling $122k come June 30 will remain unless the budget is reduced formally via a budget amendment.

54% of the YTD variance valued at $292k is associated with;

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

•          $121k being continuation of the Busselton CBD Footpath Renewal program, which involves landscaping and street furniture within areas paved last financial year - in progress

•          $82k Carey Street footpath scheduled for construction in March

Parks, Gardens & Reserves

4,730,467

9,602,531

4,872,064

50.7%

266,208

Various

Busselton Jetty - Capital Expenditure

151,431

408,786

257,355

63.0%

(36,966)

Major Maintenance works 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 the tasks planned year to year, the weather and working around the peak tourist seasons. There is $202k in committed works currently under way that accounts for the YTD variance.  

Various

Coastal & Boating

93,808

1,136,800

1,042,992

91.7%

(13,792)

74% of the variance valued at $776k 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 with some of these costs offset by the Forth Street Seawall project that cost more than anticipated.  

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


 

Various

Waste Services

380,812

952,500

571,688

60.0%

(116,483)

The majority of this variance is associated with budgets that were carried over from the previous year. $93k of the YTD variance is associated with the Liquid Waste Pond Renewal works that are proceeding as planned, Works associated with the Busselton Landfill Post-Closure Capping, Rehab & Remediation are well under budget YTD with the focus on development of the phase two landfill now taking priority.

Various

Townscape & Vasse River

43,548

539,023

495,475

91.9%

215,759

No works of any significance associated with projects within this category have yet to commence. Townscape Works in Dunsborough valued at $1.057m and Vasse River works valued at $640,000 are contributing to the YTD variance.   

The Dunsborough Townscape project is being staged, with this financial year’s scope comprising of service relocation and roundabout/ carpark construction in quarter 4.

Various

Other P&G Infrastructure

4,060,868

6,565,422

2,504,554

38.1%

217,689

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

•          62% of the YTD variance valued at $ 1.566m is associated with the Dunsborough Lakes Sporting Precinct project and the new Non-Potable Water Network both under construction.

•          38% of the YTD variance totalling $952k is comprised of a further 14 projects that have an YTD variance in excess of $40k under expended to budget. Most of these projects are underway, have committed costs or are due to commence in the coming months.

•          The Barnard Park East Foreshore Landscaping project is reported at $195k over expended to the annual budget. With commitments included this variance increased to $597k over budget, this over expenditure has been highlighted in Councillor briefings. 

Various

Drainage

13,200

105,600

92,400

87.5%

35,089

The YTD variance to budget is largely associated with the Carey Street drainage upgrade project which has now commenced.

Various

Regional Airport & Industrial Park Infrastructure

81,197

208,396

127,198

61.0%

 -

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.

 

6.      Proceeds From Sale of Assets  

YTD there have been no proceeds from sale of assets recorded against the YTD budget of $548K. 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. 

 

7.     Proceeds from New Loans

         During the month two $5M loans for the BPACC project were drawn from the WATC.  At the time of setting the budget, the timing of these two drawdowns was spread apart, however to take advantage of lower interest rates before they were predicted to rise, Council decided to draw both $5M tranches at the same time.  This has caused a $5M positive timing variance to budget in this area.

        This is offset by a negative timing variance of $425K that relates to draw downs for the provision of self-supporting loans, including $200K for Community Groups.  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 applicants.

 

8.     Total Loan Repayments - Principal

         Repayments of the principal on loans is $233K under budget YTD, due to the loan for the BPACC not proceeding in timeframe as budgeted.

 

9.   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.  YTD the variance is $5.4M mainly due to the AUDC being put on hold.

 

10.   Transfer to Restricted Assets  

There is an YTD variance in transfers to Restricted Assets of $17M 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). Loans ($10M) received for BPACC was transferred to restricted assets until utilized.  Also, the following grants, totaling $5M, 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 $459K for road works bonds and $530K for caravan park deposits.

 

11.   Transfer from Restricted Assets

YTD there has been $3.05M transferred from Restricted Assets into the Municipal Account. This was mainly attributable to $500K of Bushfire Mitigation Activity funds that did not need to be restricted, $280k attributable to cash in lieu of public open space to recoup Muni for expenditure incurred to reporting date, , and $2.2M 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 31st January 2022 the value of the City’s invested funds are $100M, up from $91.9.M as at 31st December 2021.

 

The increase of $8M is due in two parts to:

·        a $10M loan deposited into 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. 

·        The closure of $2M term deposit.

 

As at 31st January 2022 the 11AM account balance is $14.0M, up from $4M as at 31st December due to the above deposit.

 

During the month of January two term deposits totalling the amount of $8M matured. These were renewed for a further 132 days at 0.36% on average and one term deposit was closed with an amount of $2M

 

The official cash rate remains steady for the month of January 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 $10M was drawn from the WATC for the BPACC project.  The funds have been restricted for use solely on the project.  The attached Loan Schedule outlines the status of all existing loans as at January YTD.

 


Chief Executive Officer – Corporate Credit Card

Details of transactions made on the Chief Executive Officer’s corporate credit card during January 2022 are provided below to ensure there is appropriate oversight and awareness.

 

Date

Payee

Description

$ Amount

13/01/22

Regional Development Australia South West Inc.

2 x tickets to SW Regional Futures-Busselton Launch Sundowner

CEO M. Archer & Mayor G. Henley

44.00

 

 

TOTAL

$44.00

 

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 January 2022, the City’s net current position stands at $19.8M. The City’s financial performance is considered satisfactory, and cash reserves remain strong.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.  


Council

214

23 March 2022

12.8

Attachment a

Statement of Financial Position - Period Ended 31 January 2022

 













Council

216

23 March 2022

12.8

Attachment b

Loan Schedule - January 2022

 


Council

217

23 March 2022

12.8

Attachment c

Investment Report - January 2022

 


Council                                                                                      219                                                                23 March 2022

12.9           Finance Committee - 9/3/2022 - LIST OF PAYMENTS MADE - JANUARY 2022

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 - January 2022

This item was considered by the Finance Committee at its meeting on 9/3/2022, the recommendations from which have been included in this report.

Committee Recommendation

That the Council notes payment of voucher numbers as follows:

CHEQUE PAYMENTS

119121 - 119145

79,634.00

ELECTRONIC TRANSFER PAYMENTS

EFT84496 - EFT85167

5,813,050.95

TRUST ACCOUNT

CHQ # 7584, EFT84535 - EFT84536

48,321.89

PAYROLL PAYMENTS

01.01.22 - 31.01.22

1,692,998.11

INTERNAL PAYMENT VOUCHERS

DD004727 - DD004756

148,125.83

TOTAL PAYMENTS

7,782,130.78

 OFFICER RECOMMENDATION

That the Council notes payment of voucher numbers as follows:

CHEQUE PAYMENTS

119121 - 119145

79,634.00

ELECTRONIC TRANSFER PAYMENTS

EFT84496 - EFT85167

5,813,050.95

TRUST ACCOUNT

CHQ # 7584, EFT84535 - EFT84536

48,321.89

PAYROLL PAYMENTS

01.01.22 - 31.01.22

1,692,998.11

INTERNAL PAYMENT VOUCHERS

DD004727 - DD004756

148,125.83

TOTAL PAYMENTS

7,782,130.78

 

EXECUTIVE SUMMARY

This report provides details of payments made from the City’s bank accounts for the month of January 2022, for noting by the Council and recording in the Council Minutes.

BACKGROUND

The Local Government (Financial Management) Regulations 1996 (the Regulations) requires that, when the Council has delegated authority to the Chief Executive Officer to make payments from the City’s bank accounts, a list of payments made is prepared each month for presentation to, and noting by, the Council.

OFFICER COMMENT

In accordance with regular custom, the list of payments made for the month of January 2022 is presented for information. 

Statutory Environment

Section 6.10 of the Local Government Act 1995 and more specifically Regulation 13 of the Regulations refer to the requirement for a listing of payments made each month to be presented to the Council.

 

Relevant Plans and Policies

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

 

Financial Implications

There are no financial implications associated with the officer recommendation.

 

Stakeholder Consultation

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

 

Risk Assessment

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

 

Options

Not applicable.

CONCLUSION

The list of payments made for the month of January 2022 is presented for information.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.


Council

228

23 March 2022

12.9

Attachment a

List of Payments - January 2022

 









 


Council                                                                                      230                                                                23 March 2022

13.             Planning and Development Services Report

Nil


14.             Engineering and Work Services Report

Nil


Council                                                                                      234                                                                23 March 2022

15.             Community and Commercial Services Report

15.1           APPLICATION CLUB NIGHT LIGHTS PROGRAM - BUSSELTON BOWLING CLUB

STRATEGIC THEME

LIFESTYLE - A place that is relaxed, safe and friendly with services and facilities that support healthy lifestyles and wellbeing.

STRATEGIC PRIORITY

2.3 Provide well planned sport and recreation facilities to support healthy and active lifestyles.

SUBJECT INDEX

CSRFF

BUSINESS UNIT

Governance Services

REPORTING OFFICER

Club Development Officer - Melissa Egan

AUTHORISING OFFICER

Director, Community and Commercial Services - Naomi Searle

NATURE OF DECISION

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

VOTING REQUIREMENT

Absolute Majority

ATTACHMENTS

Attachment a   Strategic Plan - Busselton Bowling Club Inc.  

 

OFFICER RECOMMENDATION

That the Council:

1.         Endorses the priority rankings of the applications to the Department of Local Government Sport and Cultural Industries’ Club Night Lights Program as ranking 1 of 1, rating A, Busselton Bowling Club Inc. – Bowling Green Lighting.

2.         Submits an application on behalf of the Busselton Bowling Club Inc. to the Department of Local Government Sport and Cultural Industries for funding for its Bowling Green Lighting project.

3.         Endorses the allocation of up to $46,470 (exclusive of GST) towards the Busselton Bowling Club Inc. application for Bowling Green Lighting, to be funded from the 2022/2023 Community Assistance Program Budget, as the City’s commitment to one third of the project cost.

EXECUTIVE SUMMARY

The Club Night Lights Program (CNLP) is a State Government funding program which provides financial assistance to community groups and local governments to develop sports floodlighting infrastructure. The CNLP program is similar to, and managed the same, as the Community Sporting and Recreation Facilities Fund but designated towards lighting sporting facilities.

 

The current round of small grant applications (less than $300,000) must be submitted to the Department of Local Government, Sport and Cultural Industries (DLGSCI) by 31 March 2022. This report is required as part of the CNLP criteria, to obtain Council’s approval to submit the application to the DLGSCI and endorse the financial commitment by the City in support of the project.

BACKGROUND

The CNLP is administered by the DLGSCI and provides financial assistance of up to a maximum of one third of the total capital cost for the installation or upgrade of lighting at sporting facilities which will maintain or increase physical activity and participation.

 

To ensure the lighting projects are viable and appropriate, applications are evaluated in accordance with a criteria developed by the DLGSCI and how well they meet four Key Principles of Facility Provision, being Planning, Management, Design and Financial.


 

The local government is required to assess the application against these criteria and then rate and prioritise the application using the following guide:

 

RATE

DESCRIPTION

A

Well planned and needed by the municipality

B

Well planned and needed by the applicant

C

Needed by the municipality, more planning required

D

Needed by the applicant, more planning required

E

Idea has merit, more preliminary work needed

F