Agenda of Council - Wednesday, 23 March 2022

Council 10 23 March 2022

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.

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

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 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.

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.

(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:

o all persons who responded to the 2021 consultation;

o holiday home owners and current applicants; and

o 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

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		136		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.

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

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

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 30April 2022.

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

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 31^st 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 31^st 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 31^st January 2022 the 11AM account balance is $14.0M, up from $4M as at 31^st 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.

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

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 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

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

Council		21		23 March 2022
12.1	Attachment a		2021 Compliance Audit Return - City of Busselton Responses

Council		69		23 March 2022
12.2	Attachment a		Consolidated Current Local Law 2010

Council		144		23 March 2022
12.4	Attachment a		Proposed Council Policy: Tree Management and Retention on City Land

Council		150		23 March 2022
12.5	Attachment a		Amended Policy: Meetings, Information Sessions and Decision-Making Processes

Council		158		23 March 2022
12.6	Attachment a		Proposed: Customer Experience Charter

Council		177		23 March 2022
12.7	Attachment a		Detailed Budget Review Schedule

Council		214		23 March 2022
12.8	Attachment a		Statement of Financial Position - Period Ended 31 January 2022

Council		228		23 March 2022
12.9	Attachment a		List of Payments - January 2022