Finance Committee Agenda

 

 

 

13 April 2022

 

 

 

 

 


ALL INFORMATION AVAILABLE IN VARIOUS FORMATS ON REQUEST

city@busselton.wa.gov.au

 

 


CITY OF BUSSELTON

MEETING NOTICE AND AGENDA – 13 April 2022

 

 

 

TO:                  THE MAYOR AND COUNCILLORS

 

 

NOTICE is given that a meeting of the Finance Committee will be held in the Committee Room, Administration Building, Southern Drive, Busselton on Wednesday, 13 April 2022, commencing at 10.45am.

 

The attendance of Committee Members is respectfully requested.

 

 

DISCLAIMER

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

 

 

 

 

 

Oliver darby

 

ACTING CHIEF EXECUTIVE OFFICER

 

8 April 2022


CITY OF BUSSELTON

Agenda FOR THE Finance Committee MEETING TO BE HELD ON 13 April 2022

TABLE OF CONTENTS

 

ITEM NO.                                        SUBJECT                                                                                                                              PAGE NO.

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

2....... Attendance. 4

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

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

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

5.1          Minutes of the Finance Committee Meeting held 9 March 2022. 4

6....... Reports. 5

6.1          LIST OF PAYMENTS MADE - FEBRUARY 2022. 5

6.2          FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 28 FEBRUARY 2022. 15

6.3          ADOPTION OF THE SCHEDULE OF FEES AND CHARGES FOR THE 2022/23 FINANCIAL YEAR. 51

6.4          RATE EXEMPTION APPLICATION -  SOUTH METROPOLITAN YOUTH LINK INC. 91

6.5          BUDGET AMENDMENTS: KALOORUP ROAD BRIDGE FUNDING AND ALLOCATION OF SURPLUS FUNDS TO BPACC RESERVE. 123

6.6          BUDGET AMENDMENT FOR PERCENT FOR ART. 127

7....... General Discussion Items. 138

8....... Next Meeting Date. 138

9....... Closure. 138

 


Finance Committee                                                             4                                                                        13 April 2022

 

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

 

2.               Attendance 

Apologies

 

3.               Public Question Time

 

4.               Disclosure Of Interests

 

5.               Confirmation Of Minutes

5.1             Minutes of the Finance Committee Meeting held 9 March 2022

Recommendation

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

 


Finance Committee                                                             6                                                                        13 April 2022

6.               Reports

6.1             LIST OF PAYMENTS MADE - FEBRUARY 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

Director Finance and Corporate Services – Tony Nottle

NATURE OF DECISION

Noting: The item is simply for information purposes and noting

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   List of Payments - February 2022  

 

OFFICER RECOMMENDATION

That the Council notes the payment of voucher numbers for the month of February 2022 as follows:

 

CHEQUE PAYMENTS

119146 - 119177

                  15,584.05

ELECTRONIC TRANSFER PAYMENTS

 85168 - 85461 and 85465 - 85798

            6,065,325.53

TRUST ACCOUNT

 EFT # 85462 - 85464

                  22,930.56

PAYROLL PAYMENTS

 01.02.22 - 28.02.22

            1,632,262.10

INTERNAL PAYMENT VOUCHERS

 DD004757- DD004792

               129,831.83

TOTAL PAYMENTS

            7,865,934.07

EXECUTIVE SUMMARY

This report provides details of payments made from the City’s bank accounts for the month of February 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 February 2022 is presented for information. 

 

Statutory Environment

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

 

Relevant Plans and Policies

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

 

Financial Implications

There are no financial implications associated with the officer recommendation.

Stakeholder Consultation

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

 

Risk Assessment

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

 

Options

Not applicable.

CONCLUSION

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

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.


Finance Committee

8

13 April 2022

6.1

Attachment a

List of Payments - February 2022

 









Finance Committee                                                             36                                                                      13 April 2022

6.2             FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 28 FEBRUARY 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

Director Finance and Corporate Services – Tony Nottle

NATURE OF DECISION

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

VOTING REQUIREMENT

Simple Majority

ATTACHMENTS

Attachment a   Loan Schedule - February 2022

Attachment b    Financial Activity Statement - February 2022

Attachment c    Investment Report - February 2022  

 

OFFICER RECOMMENDATION

That the Council receives the statutory financial activity statement reports for the period ending 28 February 2022, pursuant to Regulation 34(4) of the Local Government (Financial Management) Regulations 1996.

EXECUTIVE SUMMARY

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

 

This report has been compiled to fulfil the statutory reporting requirements of the Act and associated Regulations, whilst also providing the Council with an overview of the City’s financial performance on a year to date basis, for the period ending 28 February 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 28 February 2022

The Statement of Financial Activity (FAS) for the year to date (YTD) shows an overall Net Current Position of $14.5M as opposed to the budget of $2.7M. This represents a positive variance of $11.9M YTD.

 

The following table summarises the major YTD variances that appear on the face of the FAS, which, in accordance with Council’s adopted material variance reporting threshold, collectively make up the above difference.  Each numbered item in this lead table is explained further in the report.

 

Description

2021/22
Actual YTD

$

2021/22
Amended
Budget YTD

$

2021/22
Amended
Budget

$

2021/22
YTD Bud Variance

%

2021/22
YTD Bud Variance

$

Change in Variance Current Month

$

Revenue from Ordinary Activities

 

1.28%

931,891

117,402

1.    Other Revenue

511,965

232,567

414,950

120.14%

279,398

113,586

Expenses from Ordinary Activities

 

7.22%

4,095,270

253,165

2.    Materials & Contracts

(10,746,248)

(12,093,462)

(20,345,296)

11.14%

1,347,214

109,916

3.    Other Expenditure

(2,115,578)

(4,069,278)

(9,685,100)

48.01%

1,953,700

157,177

4.    Non-Operating Grants, Subsidies and Contributions

1,850,609

9,657,655

34,850,687

(80.84%)

(7,807,046)

(713,168)

Capital Revenue & (Expenditure)

 

26.28%

11,031,813

(8,593,546)

5.    Land & Buildings

(1,858,670)

(14,548,613)

(22,802,632)

87.22%

12,689,943

648,916

Plant & Equipment

(835,516)

(2,025,000)

(2,890,000)

58.74%

1,189,484

171,406

Furniture & Equipment

(180,767)

(549,191)

(828,800)

67.08%

368,424

(5,676)

Infrastructure

(11,992,351)

(22,101,394)

(38,537,750)

45.74%

10,109,042

(335,372)

6.    Proceeds from Sale of Assets

28,839

634,278

776,071

(95.45%)

(605,439)

(57,878)

7.    Proceeds from New Loans

10,075,000

15,450,000

25,450,000

(34.79%)

(5,375,000)

(9,950,000)

8.   Total Loan Repayments – Principal

(1,615,120)

(1,848,193)

(3,839,418)

15.32%

233,073

0

9.  Repayment Capital Lease

(442,654)

(365,278)

(489,199)

(21.18%)

(77,376)

(100,406)

10.  Advances to Community Groups

(75,000)

(5,450,000)

(5,450,000)

98.62%

5,375,000

(50,000)

11.  Transfer to Restricted Assets

(19,672,505)

0

(10,021,740)

(100.00%)

(19,672,505)

(2,562,249)

12.  Transfer from Restricted Assets

5,197,680

0

1,735,682

100.00%

5,197,680

2,143,258

13.  Transfer from Reserves

4,663,076

3,076,832

39,544,446

51.55%

1,586,244

1,584,503


Revenue from Ordinary Activities

In total, revenue from Ordinary Activities is very close to budget at only 1.28% ahead YTD.  There is however a material variance item requiring comment.

                                   

1.      Other Revenue

Ahead of YTD budget by $279K, or 120.14%, 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

52,567

46,440

6,127

13.19%

(25,343)

10360

Customer Services – Sale of Number Plates

9,818

2,520

7,298

289.61%

(840)

This is not an area that is easy to predict based on historical trends.  This financial year there has been a spike in people wishing to acquire personalised plates.

Planning and Development Services

72,978

85,066

(12,088)

(14.21%)

(2,681)

10950

Animal Control – Prosecutions

15,529

22,868

(7,339)

(32.09%)

(2,244)

Difficult to predict, but may have been contributed to by improved public compliance coupled with a shift in focus away from prosecution toward education.

10970

Parking Control – Parking Fines & Costs

22,147

26,774

(4,627)

(17.28%)

(1,155)

Difficult to predict, but may have been contributed to by improved public compliance coupled with a shift in focus away from prosecution toward education.

Engineering and Works Services

384,097

97,641

286,456

293.38%

157,786

12642

NCC Standpipe – Sale of Water

25,396

9,073

16,323

179.90%

14,019

Sales are based on meter readings for water taken from the standpipe.  Over summer there was considerably more volume taken than was originally budgeted.

G0030 & G0031

Busselton & Dunsborough  Transfer Station – Sale of Scrap Materials

357,070

88,568

268,502

303.16%

134,694

Prices received for scrap metal have been favourable – up to $220/tonne received in July, $255/tonne received in November, and $265/tonne in January and February for major collections, compared to $110-$140/tonne during 2020. 

 

 


Expenses from Ordinary Activities

Expenditure from ordinary activities is $4.1M, or 7.2%, less than expected when compared to the budget YTD as at February. 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 $1.35M.  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

1,126,656

1,488,419

361,763

24.3%

15,757

10151

Rates Administration

142,906

185,425

42,519

22.9%

11,317

Variation between YTD actual and budget is mainly due to:

·        Postage $19.3K 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 $32.5K under budget as the charges have come in a lot less than expected.

·        Legal expenses $20.2K over budget due to a substantial increase in debt recovery proceedings. This expenditure is fully recovered from the property owner/s.

·        Consultancy $9K 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.

10250

Information & Communication Technology Services

551,010

667,023

116,013

17.4%

39,126

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.  In the month of February there was also a relocation of bank charges from IT to Finance to incorrect postings associated with the new Securepay service.

10360

Customer Service

9,269

23,874

14,605

61.2%

3,777

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

55,563

82,096

26,533

32.3%

7,704

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

18,377

75,697

57,320

75.7%

9,069

The underspend is mainly 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

44,527

112,338

67,811

60.4%

7,174

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. Therefore timing of expenditure is dependent on the vacancies.

R0288

Locke Estate

4,281

17,336

13,055

75.3%

2,167

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)

 -

14,868

14,868

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

1,110,305

1,910,458

800,153

41.9%

210,591

10380 & 10381

Busselton & Dunsborough Libraries

69,970

129,567

59,597

46.0%

(3,144)

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)

51,887

52,042

100.3%

214

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%

 -

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 March and April.

10590

Naturaliste Community Centre

37,549

55,357

17,808

32.2%

(5,947)

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

314,500

389,821

75,321

19.3%

2,119

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

48,370

68,265

19,895

29.1%

354

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

23,485

147,447

123,962

84.1%

51,594

The majority of the budgeted 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

4,580

22,112

17,532

79.3%

(1,071)

Awaiting confirmation of further grant monies before engagement of consultants.

11151

Airport Operations

142,284

470,309

328,025

69.7%

17,231

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)

33,787

51,899

18,112

34.9%

(860)

Purchase of planned minor equipment has been delayed, due to delay in construction of The Break. We also are experiencing a reduction in uptake of the Upskills Youth Program, due to COVID in the community, which has resulted in less expenditure than planned.

Planning and Development Services

661,796

522,853

(138,943)

(26.6%)

(160,466)

10801

Sustainability

110,217

79,974

(30,243)

(37.8%)

(110,036)

Savings in capital projects in a related area will offset this negative variance.  A budget amendment will be processed in the coming months to formally move these savings to align against this area.

10805

Planning Administration

5,707

27,926

22,219

79.6%

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

41,792

104,990

63,198

60.2%

11,019

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%)

 -

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

212,437

42,535

(169,902)

(399.4%)

(27,232)

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.

10935

Fire Fighting Council Component

27,047

 -

(27,047)

(100.0%)

(27,047)

Fire Fighting Council Component is not something that is planned or budgeted for.  Expenditure here represents cost that were incurred as part of the Council’s contribution to the emergency response to the Dunsborough fires.

10950

Animal Control

25,069

36,776

11,707

31.8%

(2,545)

The variance YTD relates to the timing of for the purchase of dog bags of dog bags ($6k per delivery) – two more pallets and additional dispensers required prior to end of financial year.

Various

Bushfire Brigades

61,219

26,813

(34,406)

(128.3%)

(8,682)

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

7,847,165

8,167,897

320,732

3.9%

43,698

10830

Environmental Management Administration

91,581

161,350

69,769

43.2%

101,287

The underspend relates to a number of outstanding proposed consultancy items which will be delivered in the 4th quarter totalling $65K. These include; dieback mapping, visitor access study, weed mapping. Further materials commitments in 3rd and 4th quarter of $65K for street trees stakes, guards, bollards and fencing. Commitments for yearly maintenance works are awaiting to be completed and invoiced over the third and fourth quarter.

11170

Meelup Regional Park

73,496

166,858

93,362

56.0%

11,179

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. $63K in works have been committed representing works that are now underway or will commence shortly.  Further expenditure is expected for works for post fire remedial action.

11160, 11161 & 11162

Busselton Jetty

22,892

11,714

(11,178)

(95.4%)

(663)

In October a compressor and ducted heater was replaced in the UWO. $23k of the annual budget totalling $54k has now been outlaid. This variance is due to timing only. Hoping to claim some of these costs through an insurance claim.

12600

Street & Drain Cleaning

241,732

253,013

11,281

4.5%

(23,817)

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

260,295

479,783

219,488

45.7%

(13,050)

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

1,050,708

923,435

(127,273)

(13.8%)

(31,912)

The budget was entered based on historical expenditure patterns, however this is not reflective of the pattern of costs being incurred this financial year. In past years significant amounts of scheduled maintenance were carried out in the last quarter however this FY it has been evenly expended on a monthly basis YTD.  The variance is therefore attributed to timing only.

Various

Waste Services

1,465,212

1,764,729

299,517

17.0%

63,737

Majority variance of $215K is associated with concrete crushing which is programmed for later in the financial year. $41k of budget underspend is attributable to External Restoration Works associated with the Rendezvous Road remediation sites matter, while a further $43K associated with green waste mulching that has not been invoiced/processed.

Various

Roads Maintenance

802,300

548,124

(254,176)

(46.4%)

(22,075)

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. $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

1,265,869

1,373,882

108,013

7.9%

(20,133)

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.

5280 (GL Activity)

Transport Fleet Management

1,214,717

1,154,853

(59,864)

(5.2%)

(19,991)

Fuel is the most significant overspend ($139k) to end of Feb due to escalating fuel prices and parts the largest underspend ($39k) due to significant delays in receiving orders due to supply chain issues. 

Various

Other Infrastructure Maintenance

1,386,852

1,528,404

141,552

9.3%

120,755

A number of areas are underspent YTD including; Noxious Weeds & Pest Plants, Busselton CBD Maintenance, LED Street Light Replacement Program and Rural Intersection (Lighting) Compliance.  These areas will see increased expenditure in the last quarter of the financial year.

Foreshore Protection-Dunsborough/Quindalup and Foreshore Protection-Yallingup & Smith budgets are overspent by $247k due to Yallingup beach access stairs that were damaged by winter storms and preventative sand renourishment activities in the Dunsborough region.  Corresponding under expenditure is contained within the Capital budget.

 

 

3.      Other Expenditure  

$1.95M, or 48.01%, 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

74,992

55,336

(19,656)

(35.5%)

(8,828)

10001

Office of the CEO

33,683

55,336

21,653

39.1%

4,627

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

10011

Emergency Contingency Costs (Other)

41,309

 -

(41,309)

(100.0%)

(13,455)

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.  This a non-cash “book entry”, with an offsetting revenue amount shown in Venue Hire income for the YCAB facility.

Finance and Corporate Services

823,726

779,631

(44,095)

(5.7%)

3,084

10000

Members of Council

436,005

497,409

61,404

12.3%

2,904

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

28,670

40,728

12,058

29.6%

(5,930)

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%)

 -

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%)

 -

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.  The full year budget of $100K will be allocated in May / June.

Community and Commercial Services

988,346

3,020,299

2,031,953

67.3%

181,611

10532

BPACC Operations

2,860

25,000

22,140

88.6%

(2,429)

BPACC operational activity will not commence until 2023.

10533

Welfare / Senior Citizens

67,561

43,398

(24,163)

(55.7%)

 -

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) was recently approved for payment earlier than forecast.

10536

School Chaplaincy

 -

41,400

41,400

100.0%

 -

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

82,486

126,735

44,249

34.9%

(1,947)

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

521,654

908,217

386,563

42.6%

34,876

The YTD underspend to budget can be explained as follows:

·        To date there have been 8 budgeted events cancelled due to COVID, totalling approximately $71K;

·        There have been 5 events that have occurred for which the City has yet to be invoiced for their contribution, totalling $57.5K;

·        6 events have had partial payments, however a total of $91.5K remains due to milestones not yet met;

·        A further $166K was forecast to have been incurred by YTD February ($110K for Winter Wonderland, and approximately $56K in general unallocated funds).

10630

Economic and Business Development Administration

126,059

95,179

(30,880)

(32.4%)

(41,514)

This is due to MRBTA visitor servicing invoice which actually gets presented at the beginning of the quarter and not the end where it has been budgeted.

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

1,992

1,533,908

1,531,916

99.9%

191,364

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 was 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

70,117

84,682

14,565

17.2%

(8,852)

10805

Planning Administration

 -

15,000

15,000

100.0%

 -

This budget 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 full year budget of $30K will get spent at all.

Engineering and Works Services

158,398

129,330

(29,068)

(22.5%)

(9,839)

10830

Environmental Management Administration

16,037

794

(15,243)

(1919.7%)

(5)

Biodiversity Incentive Rate Rebate costs per allocated and paid in January, however the budget of $17,650 is allocated to June.  Variance will rectify at year end.

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

101,812

25,000

(76,812)

(307.2%)

(5,000)

Rendezvous Road Refuse site remedial works.

 


4.     Non-Operating Grants, Subsidies & Contributions  

The negative variance of $7.8M 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%)

 -

10540

Recreation Administration

 -

51,250

(51,250)

(100.0%)

 -

10590

Naturaliste Community Centre

 -

46,700

(46,700)

(100.0%)

 -

C6010

Airport Fencing Works

 -

17,426

(17,426)

(100.0%)

 -

Engineering and Works Services

1,371,648

9,477,279

(8,105,631)

(85.5%)

(1,131,129)

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%)

 -

B9407

Busselton Senior Citizens – Developer Cont. Utilised

 -

111,750

(111,750)

(100.0%)

 -

B9591

Performing Arts Convention Centre – Federal Capital Grant

 -

4,554,000

(4,554,000)

(100.0%)

(1,138,500)

B9612

Churchill Park Renew Sports Lights –

State Capital Grant

 -

72,850

(72,850)

(100.0%)

 -

C3116

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

71,116

 -

71,116

100.0%

 -

C3211

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

25,043

 -

25,043

100.0%

 -

C3214

Kingsford Road - POS Upgrade – Developer Cont. Utilised

71,437

 -

71,437

100.0%

 -

C3215

Monash Way - POS Upgrade – Developer Cont. Utilised

71,939

 -

71,939

100.0%

 -

C3216

Wagon Road - POS Upgrade – Developer Cont. Utilised

81,341

 -

81,341

100.0%

 -

C3217

Limestone Quarry - POS Upgrade – Developer Cont. Utilised

119,687

 -

119,687

100.0%

 -


 

C3218

Dolphin Road - POS Upgrade – Developer Cont. Utilised

90,634

 -

90,634

100.0%

 -

C3219

Kingfish/ Costello - POS Upgrade – Developer Cont. Utilised

33,551

 -

33,551

100.0%

 -

C3220

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

34,480

 -

34,480

100.0%

 -

C3241

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

 -

90,000

(90,000)

(100.0%)

 -

F0084

Thompson Way - New Path - Contributions

36,818

 -

36,818

100.0%

 -

F0112

Causeway Road Shared Path – State Capital Grant

 -

80,000

(80,000)

(100.0%)

 -

S0048

Bussell Highway – Developer Cont. Utilised

 -

200,000

(200,000)

(100.0%)

 -

S0076

Kaloorup Road (Stage 1) – Main Roads Direct Grant

 -

224,400

(224,400)

(100.0%)

 -

S0077

Ludlow-Hithergreen Stage 2 Reconstruct & Widen – MR Capital Grant

 -

96,000

(96,000)

(100.0%)

 -

S0078

Sugarloaf Road –

State Capital Grant

 -

321,599

(321,599)

(100.0%)

 -

S0321

Yoongarillup Road - Second Coat Seal –

MR Capital Grant

 -

100,000

(100,000)

(100.0%)

 -

S0331

Barracks Drive Spray Seal – MR Capital Grant

 -

130,980

(130,980)

(100.0%)

 -

S0332

Inlet Drive Spray Seal –

MR Capital Grant

 -

47,000

(47,000)

(100.0%)

 -

S0333

Chapman Crescent Spray Seal – MR Capital Grant

 -

78,000

(78,000)

(100.0%)

 -

S0334

Chapman Hill Road – MR Capital Grant

 -

748,000

(748,000)

(100.0%)

 -

S0335

Kaloorup Road – MR Capital Grant

 -

240,950

(240,950)

(100.0%)

 -

S0336

Wildwood Road – MR Capital Grant

 -

937,750

(937,750)

(100.0%)

 -

 


5.      Capital Expenditure  

As at 28th February 2022, there is an underspend variance of 62.1%, or $24.4M, in total capital expenditure, with YTD actual at $14.9M against the YTD budget of $39.2M. 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

33,336

30,737

92.2%

4,167

10610

Property Services Administration

2,599

33,336

30,737

92.2%

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

1,856,072

14,515,277

12,659,205

87.2%

644,749

B9614

Dunsborough Lakes Sporting Precinct-Pavilion /Changeroom Facilities

11,372

483,334

471,962

97.6%

203,220

There has been minimal expenditure to date as works have not yet commenced. The design is currently under review to achieve budget alignment in consultation with user groups.

B9012

Civic and Administration Building Replacement of Cladding

109,370

80,000

(29,370)

(36.7%)

(88,366)

Cladding replacement only commenced in January, with planned completion toward the end of February/early March.  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.  Western Power have now confirmed that separation of power is not required. As there are other works required to these units the proposal is a cap ex spend of circa $28,000 for bathroom upgrades and reflux valves and a possible further $70,000 for replacement carports.  

B9591

Performing Arts Convention Centre

1,165,841

12,331,880

11,166,039

90.5%

434,925

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

78,117

142,568

64,451

45.2%

(2,950)

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%)

 -

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.

B9615

Naturaliste Community Centre AMP

641

57,600

56,959

98.9%

13,264

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

B9617

Buildings AMP Renewal Allocation - Meelup Ablution

7,389

120,000

112,611

93.8%

40,000

During Budget planning these works were anticipated to be spread evenly over 5 months.  Due to unforeseen design complexities the works were not able to start on time.  These issues have been resolved and this project will be delivered in this financial year.

B9622

Dunsborough Youth Centre Building Construction

15,740

 -

(15,740)

(100.0%)

 -

The timing for works and initial procurement of a transportable building was not accurately known at the time of setting the original total budget of $80K.

B9717

Airport Construction - Existing Terminal Upgrade

 -

46,485

46,485

100.0%

6,835

Invoicing in relation to the retention monies owing to Pindan (in receivership), for works completed has not yet been received.  There is also a budget amount for unforeseen works required to enable RPT services, however this has not as yet been utilised.

B9720

BMRA Hangars

 -

210,000

210,000

100.0%

 -

This is a timing issue - the RFT process closed in January, however negotiations with tenderers are still ongoing.  It is hoped that the tender will be awarded in April.

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

835,516

2,025,000

1,189,484

58.7%

171,406

10250

Information & Communication Technology Services

 -

40,000

40,000

100.0%

40,000

Vehicle due to be delivered April.

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. The delay in procurement of these items is due to current material and supply related issues.

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 April.

10630

Economic and Business Development Administration

 -

75,000

75,000

100.0%

 -

The budget relates to the replacement of two vehicles. One vehicle due to be delivered in June. Second vehicle yet to be 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%

 -

Vehicle will be ordered when new officer appointed.

10950

Animal Control

 -

50,000

50,000

100.0%

50,000

Ute for rangers to be ordered in April.

11001

Engineering Services Administration

 -

35,000

35,000

100.0%

 -

Vehicle due in November.

11107

Engineering Services Design

69,015

140,000

70,986

50.7%

(69,015)

Survey equipment ordered and part delivered, balance expected in April. 2 x cars delivered.  Survey ute to be ordered in April.

11151

Airport Operations

 -

15,000

15,000

100.0%

 -

Slasher (tractor mounted) not yet ordered.

11202

Building Facilities - Weather Station Installations

10,280

 -

(10,280)

(100.0%)

(10,280)

The actual weather stations were procured earlier than expected, and will be installed in April.

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.

11402

Plant Purchases (P10)

420,639

446,000

25,361

5.7%

 -

Waste truck P166019 to be sent to auction end of April.  Bin cleaning trailer expected to be built November. DWF site ute to be held and not replaced at this time.

11403

Plant Purchases (P11)

130,486

364,000

233,514

64.2%

160,700

An RFQ for 3 x light trucks is in progress.  Irrigation ute and Parks maintenance ute not yet ordered, waiting feedback on requirements from P&Gs team.

11404

Plant Purchases (P12)

88,453

515,000

426,547

82.8%

 -

Specification development is in progress for 2 x light trucks and RFQ is in progress for a new grader.

11500

Operations Services Administration

 -

40,000

40,000

100.0%

 -

Vehicle ordered, delivery expected in April.

Furniture & Office Equipment

180,767

549,191

368,424

67.1%

(5,676)

10250

Information & Communication Technology Services

97,783

220,891

123,108

55.7%

2,496

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. A new tender has been issued which closes on 14 April 2022.

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 was placed in February, however delivery is not expected until April/May due to supply issues.  Fencing purchase of $8k was moved out to infrastructure, increasing the variance further.

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.

Infrastructure

11,992,351

22,101,394

10,109,042

45.7%

(335,372)

Various

Roads

4,588,763

6,791,553

2,202,790

32.4%

(129,070)

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 budgeted this financial year have been put on hold given the state of the economy, availability of contractors and increased costs.

•         34% 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.

•          25% of the YTD variance valued at $558k is associated with the Peel Terrace/ Queen street roundabout renewal works which is well under way. This project will exceed the budget due to some increases in the work scope. City officers are seeking to transfer unspent Regional Road Group grant monies across to this project. A report will go to Council if this is approved.      

•         27% of the YTD variance valued at $596k 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.

•         8% of the YTD variance valued at $185k is associated with the Causeway Road - Molloy Street Intersection will be rescheduled to another year due to planning 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, Yallingup Beach Road bridge #3347 and the Tuart Drive bridge #0238 that should be open to the public soon.

The City has limited control over Main Roads scheduling and it is often the case that some Bridge projects are carried over into the following year. The City was recently been notified that bridge works on Layman Road, Kaloorup Road, Boallia Road & Gale Road values at $2.308m will now not commence until the 2022/23 financial year. 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

545,905

1,677,454

1,131,549

67.5%

124,491

70% of the YTD variance valued at $792k is associated with the new car parking for the Dunsborough Lakes Sporting Precinct. Works are well under way with the first progress payments expected to be made in March.  

The following two projects have been put on hold contributing to the YTD variance:

•             Dunsborough Chieftain Crescent Carpark Extension $99k annual budget $240k.

•             Forth Street Groyne Carpark $53k.

Various

Footpaths & Cycleways

587,371

1,283,626

696,255

54.2%

126,420

25% of the year to date variance totalling $180k is associated with the $500k Busselton CBD Footpath Renewal project where some of this project has temporarily been put on-hold pending further review and potential re list.

15% of the YTD variance valued at $109K is associated with the Buayanup Drain Shared path project that will have some minor works completed prior to June 30. 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.

Parks, Gardens & Reserves

6,172,499

10,555,565

4,383,066

41.5%

(488,998)

Various

Busselton Jetty - Capital Expenditure

202,906

545,048

342,142

62.8%

84,787

At the time this budget was being prepared the 50 year Jetty plan was being revised and structural assessments were being carried out. To this end, some of the scheduled works were able to be moved forward and as such were not required to be completed this financial year. There will be a variance to budget in the order of $200k come June 30; where these monies will remain in the Jetty Reserve to fund the rescheduled works going forward.            

Various

Coastal & Boating

187,670

1,136,800

949,130

83.5%

(93,862)

68% 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 to be offset by the Forth Street Seawall project that has been put on hold.  This project will be commenced with on site after the Easter Weekend, and will be completed before the end of the FY.

18% of the variance values at $200k is associated with a Coastal Adaptation project re the Mitigation of Coastal Flooding. This project is in the design phase, and a major portion of the funding should be expended before the end of the FY, subject to the availability of resources and material.

Included in this variance is sand renourishment costs over budget $88.5k YTD. These costs have since been reassigned back in against operations in March. This budget may be addressed via a budget amendment. The City secured $50k in grant funding for sand renourishment that is not yet included on the budget.   

Various

Waste Services

644,671

1,037,500

392,829

37.9%

(178,859)

Works associated with the Busselton Landfill Post-Closure Capping, Rehab & Remediation budget set at $1m is $408k under budget YTD with the focus on development of the phase two landfill budgeted at $500k taking priority.

Costs associated with new Liquid Waste Pond are over budget $49k YTD, this is a timing variance only with the total project expected to come in under its budgeted $410k price tag.  

Various

Townscape & Vasse River

51,463

777,582

726,119

93.4%

230,644

No physical works of any significance associated with projects in this category have yet to commence, however planning is well advanced.

Some of the townscape works in Dunsborough valued at $1.057m will be staged, between the 21/22 and 22/23 financial years.

Major Vasse River works valued at $640,000 will commence in April.    


 

Various

Other P&G Infrastructure

5,085,789

7,058,635

1,972,846

27.9%

(531,708)

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

•         74% of the YTD variance valued at $ 1.468m is associated with the Dunsborough Lakes Sporting Precinct project and the new Non-Potable Water Network both under construction.

•         The Barnard Park East Foreshore Landscaping project is reported at $237k over expended to the annual budget. This variance is anticipated to increase to an est. $550k over expenditure to budget, this has been highlighted in Councillor briefings. 

Various

Drainage

16,616

140,800

124,184

88.2%

31,784

The YTD variance to budget is largely associated with the Carey Street drainage upgrade project which has now commenced. This variance will reduce significantly by the end of March report.

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. A nominal amount was budgeted for unforeseen noise mitigation requirements, resulting from the commencement of RPT services.  Some of these works have only just commenced.

 

6.      Proceeds From Sale of Assets  

YTD there have been minimal proceeds from sale of assets recorded against the YTD budget of $634K. 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

By YTD February it was forecast that two self-supporting loans totalling $5.25M would have been drawn, which has not happened at this time.  A further $125K of self-supporting loans to community groups was also forecasted to have been drawn and on-lent by this stage of the financial year.  The combination of these things accounts for the $5.375M positive variance YTD

        This is offset by a corresponding negative timing variance of $5.375M in Advances to Community Groups.

 

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 the timeframe as budgeted.

 

9.      Repayment Capital Lease

         The YTD overspend compared to budget is purely a timing related variance, with a number of lease repayments forecast for March occurring in February.  This will balance out by year end.

 

10.   Advances to Community Groups

         Although it is 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 outlined above.  YTD the variance is $5.375M mainly due to the AUDC being put on hold.

 

 

 

 

11.   Transfer to Restricted Assets  

There is a YTD variance in transfers to Restricted Assets of $19.7M because there is no budget for this item during the year, as the transfers are usually not possible to predict, and are fully reconciled only at year end.

 

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 $6.1M, 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 $3.6M has been received YTD, including $1.5M for road works bonds and $575K for caravan park deposits.

 


11.   Transfer from Restricted Assets

YTD there has been $5.2M 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, $1.2M utilized of the BPACC loan funds, and $3.2M 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 28th February 2022 the value of the City’s invested funds totalled $97M, down from $100M as at 31st January 2022. The decrease is due to the transfer of $3M from the 11am account.

 

As at 28th February 2022 the 11AM account balance is $11.0M, down from $14M as at 31st January 2022 due to the above transfer which is to provide funds for ongoing operating expenses.

 

During the month of February six term deposits totalling the amount of $16.5M matured. These were renewed for a further 109 days at 0.39% on average.

 

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 no new loans were drawn nor any repayments made.  The attached Loan Schedule outlines the status of all existing loans as at February YTD.

 

Chief Executive Officer – Corporate Credit Card

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

 

Date

Payee

Description

$ Amount

02/02/22

The Lockup Coffee House

BPACC SOD Turning coffees

$71.00

02/02/22

The Lockup Coffee House

BPACC SOD Turning coffees

$21.00

15/02/22

The Good Egg

CEO/Mayor lunch with Shire of Capel

$117.00

21/02/22

The Australian Institute of Company Directors

Membership Renewal - M. Archer

*$605.00

 

 

TOTAL

$814.00

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

 

Donations & Contributions Received

During the month no donations or contributions were received.

 

Statutory Environment

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


Relevant Plans and Policies

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

 

Financial Implications

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

 

Stakeholder Consultation

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

 

Risk Assessment

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

 

Options

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

CONCLUSION

As at 28th February 2022, the City’s net current position stands at $14.5M. The City’s financial performance is considered satisfactory, and cash reserves remain strong.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.  


Finance Committee

37

13 April 2022

6.2

Attachment a

Loan Schedule - February 2022

 


Finance Committee

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13 April 2022

6.2

Attachment b

Financial Activity Statement - February 2022

 













Finance Committee

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13 April 2022

6.2

Attachment c

Investment Report - February 2022

 


Finance Committee                                                             56                                                                      13 April 2022

6.3             ADOPTION OF THE SCHEDULE OF FEES AND CHARGES FOR THE 2022/23 FINANCIAL YEAR

STRATEGIC THEME

LEADERSHIP - A Council that connects with the community and is accountable in its decision making.

STRATEGIC PRIORITY

4.5 Responsibly manage ratepayer funds to provide for community needs now and in the future.

SUBJECT INDEX

Fees and Charges

BUSINESS UNIT

Finance and Corporate Services

REPORTING OFFICER

Finance Coordinator - Jeffrey Corker

AUTHORISING OFFICER

Director Finance and Corporate Services - Tony Nottle

NATURE OF DECISION

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

VOTING REQUIREMENT

Absolute Majority

ATTACHMENTS

Attachment a   Draft Schedule of Fees and Charges for the 2022/23 Financial Year  

 

OFFICER RECOMMENDATION

That the Council adopts the Schedule of Fees and Charges, as per Attachment A – Draft Schedule of Fees and Charges, effective from and including 1 July 2022.

EXECUTIVE SUMMARY

In accordance with Regulation 5(2) of the Local Government (Financial Management) Regulations 1996 (the Regulations), a local government is to undertake a review of its fees and charges regularly, and not less than once in every financial year. This report provides Council with a recommended Schedule of Fees and Charges to apply for the financial year commencing on 1 July 2022.

BACKGROUND

Each year, the City sets its fees and charges with the view of implementing any changes as of 1 July in any given year. City officers have reviewed each section of the fees and charges and have highlighted any areas of change, or reasons why no changes have occurred in comparison to the existing adopted listing.

As part of the annual review of the fees and charges, officers take into account matters including the cost to provide a service, market conditions and needs of the community. These inform the recommendations that will be made to the Council. These fees and charges recommended are in accordance with recent planning and discussions relating to the City’s Long Term Financial Plan. 

When Council adopts an annual budget, it may also set its fees and charges that will be imposed during a financial year. In order for the 2022/23 schedule of fees and charges to be effective from the commencement of the new financial year, the Council is required to adopt its schedule in advance of 30 June 2022, such that any statutory public notice periods (including gazettal’s where required) can be complied with.


OFFICER COMMENT

The 2022/23 Draft Schedule of Fees and Charges has been guided by a 2.6% general escalation over currently adopted fees and charges. Notwithstanding this, in some limited instances, this principle is not appropriate, with other factors also requiring consideration. The following provides an overview, by directorate, of noteworthy instances where an increase has not been applied, whilst also discussing, where relevant, newly proposed fees and charges.

 

Planning and Development Services

Building Related Fees

·        General

The wording of a number of fees have been altered to provide clarity.

 

·        Swimming Pool Inspections

Fees relating to Swimming Pools have been collated and given their own category.

The Pool Certificate Inspection fee relates to inspection as required by Regulation 28 of the Building Regulations 2012 at the completion of the construction of a swimming pool to ensure the barriers have been installed correctly and that the pool is safe to use. This fee was previously captured under the ‘Certificate of Construction / Building Compliance’ line item.

 

Health Related Fees

·        General

A number of fees have not been increased as they are already set at the maximum statutory amount.

 

Town Planning Related Fees

·        General

The wording of a number of fees have been altered to provide clarity and a number of fees that are Statutory in nature have been deleted as Council has no discretion over them.

 

Ranger & Fire Service Related Fees

·        Impounding Fees – Other – Motor Vehicles

The fee for a Daily Impoundment of a Motor Vehicle has been altered for $30 to “At Cost”. The City’s towing contractor does not currently charge a daily storage fee. The fee would only be applied if that were to change, in which case the charge would be passed on to the vehicle owner

 

Engineering & Works Services

Waste Disposal and Sanitation Fees

·        Other Miscellaneous Charges

The fee for domestic Electronic Waste has been deleted as it subject to Contract restrictions. Commercial Electronic Waste has a separate charge.

 


Finance & Corporate Services

Administration / Miscellaneous Fees

·        Sale of Council Documents

The fee for an Annual Subscription to the Council Minutes has been deleted as the fee is not needed as the minutes are available for free from the Internet.

 

Rates & Finance Charges

·        Rates / Property Related Matters

The fees for ownership listings per search and per locality have been increased to $50 to better reflect the cost of staff time involved to prepare replies.

 

Cemetery fees

·        General

A number of fees have not been increased as price checking has indicated the Busselton fees are high compared to other similar cemeteries. Accordingly some fees have been held at previous prices to help restore parity. The layout and wording of a number of fees has been altered with the intention of simplifying the fees and charges and removing unnecessary repetition or wording in the Cemeteries Act and Local Law.

 

A new fee, Request for Minor Monumental Works (cleaning, repairs, maintenance etc.); has been introduced. A number of fees have been removed as they are no longer applicable.

 

Community & Commercial Services

Events – Equipment Hire & Signage

·        Event Signage

Subject to Tender submissions, it is planned to replace the current events billboard with a digital billboard. This will save event organisers the supply costs for the sign skins. To provide a greater degree of parity a new hire fee for commercial events is proposed which is double that of a community hire.

 

ArtGeo Cultural Complex

·        Courthouse Complex Hire

The charges for Courtyard and Marine Terrace Garden are to be aligned with rental of the Fodder Room and charge a flat $15 per hour.  This will enable small groups to use this area with little staff involvement and activate spaces outside our normal operating hours.  Target groups include wellbeing groups such as yoga and tai chi during the fine weather period. 

 

·        Exhibition Hire

ArtGeo Gallery fees have been removed as the gallery is now the construction site office for the Busselton Performing Arts and Convention Centre. Fees will be reviewed and proposed as part of a separate report to Council along with other fees for the venue.

 

It is planned to remove the exhibition charges from the Bond Store to support emerging artists.  In exchange for the removal of this cost, it is intended to ask for relevant artist to reciprocate with either a free workshop, artist talk or demonstration each.  This will give life and vibrancy to the complex and insure the space is constantly occupied. 

Library Charges

·        General

The charge for A3 photocopies (both black and white and colour) has increased to double that of an A4 photocopy, reflecting the fact that double the amount of ink is used to produce the A3 copy. This is consistent with photocopy charges set by commercial operators. The libraries’ new MFDs are set up to charge the new fees.

 

Busselton-Margaret River Regional Airport

·        Landing Fees& General Aviation Charges

Landing Fees for the two lighter categories of aircraft have not been increased so as to encourage General Aviation use of the airport.

 

The fee for “Apron parking bay 1-11 per day – first 3 hours free” has been increased from $33 to $40, a 21% increase. BMRA apron parking was originally implemented lower than other regional airports to encourage aircraft overnighting. This is now occurring and apron CCTV needs to be installed and hence charges should be increased to contribute back to the cost of security CCTV.

 

The fee for “General aviation hardstand parking only, per day” has not been increased as a concession for GA usage of the airport.

 

·        Car Parking

Car parking fees have not been increased with RPT flights due to commence in April.

 

·        Other Fees

Fees relating to the Airport Reporting Officer have been increased above 2.6% to reflect increase in salaries, wages and overhead costs.

 

The “Hanger Hire Fee (min 200sqm) per sqm per week” has increased by 4.55% to reflect demand and also to encourage take up of the GA precinct.

 

Busselton Jetty Tourist Park

·        General

Fees for Powered sites have generally (subject to rounding) been increased by the 2.6%. Exceptions are pensioner’s rates (~1.3% increase) and extra child/adult per night rates.

The “Cancellation booking fee” has been increased by 5% due to rounding.

 

The “Washing machine fee” has not increased as to do so would necessitate the coin mechanism to be changed on the washing machines.

 

The “Additional charge for electricity use for caravan air conditioners per day” fee has been increased by 3.57% to reflect increases in WA electricity prices.

 

Outdoor Exercise Sites

·        General

All Outdoor Exercise Site Permits have been increased by approximately 7% as industry benchmarking suggests that the City is charging less than many other Local Governments. 

 


Geographe Leisure Centre

·        Swimming Pool

A new fee, Swimming Pool lane hire - Commercial (per lane per hour) OFF- Peak; has been introduced to encourage use of the pool after 7pm at off-peak times. 

 

Local regular not for profit user groups – no increase to current $5 fee is recommended.  Restricted lane space availability and rebuilding relationships with user groups, who have communicated issues with current fees for lane hire.  An increase to this fee would create further financial issues for clubs at this time.

 

The “Learn to Swim” charge has only increased by 1% to keep fee rounded to $16.00 per lesson instead of $16.20.  Next year will look towards increasing this to $16.50 per lesson.

 

The fee to hire the Small Inflatable has been increased by 17% to $140/hour to align more with outdoor inflatable and allow for increase in costs to staffing and administration costs

 

·        Personal / Group Training

The fee for “Personal/Group Training – PT School program entry per student (min 8 students)” is to remain at $8.00, for affordability to students to attend school programs in future. 

 

·        Crèche / Activity Room

The fee for the Vacation Care Program has increased by 4% to round the fee up to $80.  Noting no increase was applied in 21/22, an increase in costs for excursions has justified this 4% increase.

 

Naturaliste Community Centre

·        Family Activity Centre

Fees to utilise this space have been increased by more than 2.6% to reflect that the room needs to be prepared by staff prior to use. 

 

·        Community Office Space

No increase to this fee has been proposed to encourage usage of the room. 

 

·        Vacation Care Program

The fee for the Vacation Care Program has increased by 4% to round the fee up to $80.  Noting no increase was applied in 21/22, an increase in costs for excursions has justified this 4% increase.

 

Statutory Environment

Sections 6.16 to 6.19 of the Local Government Act 1995 (the Act) refer to the imposition, setting the level of, and associated administrative matters pertaining to fees and charges. The requirement to review fees and charges on an annual basis is detailed within Regulation 5 of the Regulations.

 

Section 6.16 of the Act states that a local government may impose and recover a fee or charge for any goods or services it provides or proposes to provide, other than a service for which a service charge is imposed.

 


Section 6.17 of the Act further states that in determining the amount of a fee or charge for goods and services, a local government is to take in to consideration the following factors:

a)         The cost to the local government of providing the service or goods;

b)        The importance of the service or goods to the community; and

c)         The price at which the service or goods could be provided by an alternative provider. 

 

Section 6.18 of the Act clarifies that, if the amount of any fee or charge is determined under another written law, then a local government may not charge a fee that is inconsistent with that law.

 

Relevant Plans and Policies

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

 

Financial Implications

Whilst revenue from fees and charges includes items that the Council has no authority to amend (statutory charges set by external bodies), it is important that, where possible, controllable fees and charges are appropriately indexed on an annual basis, to assist in offsetting the increasing costs of providing associated services. This may include increases beyond normal indexation in particular cases, in line with section 6.17 of the Act.

 

The Council’s current Long Term Financial Plan reflected an annual increase in Fees and Charges revenue of 2.6%. This will be reflected in the 2022/23 budget and included in future revisions and development of the Long Term Financial Plan.

 

Stakeholder Consultation

Business Unit Managers are responsible for reviewing fees and charges associated with activities under their control. As part of the review process, consultation may occur with other local government authorities, in addition to a review of prices offered by alternate service providers (pursuant to section 6.17 of the Act).

 

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

Council may recommend amendments to the Draft Schedule of Fees and Charges as it deems appropriate.

CONCLUSION

As part of the annual review of fees and charges, the currently adopted fees and charges have been reviewed in line with the requirements of the Local Government Act 1995 and other relevant legislation as applicable. Consequently, it is recommended that Council endorses the Draft Schedule of Fees and Charges for 2022/23 as proposed.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Consequent to adoption by the Council, the Schedule of Fees and Charges for 2022/23 will become effective from and including 1 July 2022.


Finance Committee

57

13 April 2022

6.3

Attachment a

Draft Schedule of Fees and Charges for the 2022/23 Financial Year

 



































Finance Committee                                                             94                                                                      13 April 2022

6.4             RATE EXEMPTION APPLICATION -  SOUTH METROPOLITAN YOUTH LINK INC

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

Rates & Exemptions

BUSINESS UNIT

Finance and Corporate Services

REPORTING OFFICER

Rates Coordinator - David Nicholson

AUTHORISING OFFICER

Director Finance and Corporate Services - Tony Nottle

NATURE OF DECISION

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

VOTING REQUIREMENT

Absolute Majority

ATTACHMENTS

Attachment a   Rate Exemption Application

Attachment b    Rate Exemption Application Statutory Declaration

Attachment c    Rate Exemption Application Covering Letter

Attachment d   Annual Report - 2020  

 

OFFICER RECOMMENDATION

That the Council:

1.         Grant a rate exemption to South Metropolitan Youth Link Inc. for 1A, 9 Harris Road, Busselton, effective 1st March 2022, under section 6.26(2)(g) of the Local Government Act 1995; and

2.         Agree that this rate exemption is to continue where South Metropolitan Youth Link Inc. confirm in writing by 30 April annually that they continue use the property for the purposes stated in the application.

EXECUTIVE SUMMARY

An application seeking rate exemption on 1A, 9 Harris Road, Busselton (the Property) was received from South Metropolitan Youth Link Inc. (SMYL), on 22 February 2020 (Attachment A).

 

The Property is being leased by SMYL and is used to deliver a range of parenting programs and services. These are aimed at sole parents, low-income families with children, migrants and other people so as to improve literacy and numeracy skills for education and employment purposes.

 

On the basis of the application, this report recommends that rate exemption be granted under section 6.26(2)(g) of the Local Government Act 1995 (the Act) effective from 1st March 2022, being the lease commencement date.

BACKGROUND

SMYL is a large charity registered with the Australian Charities and Not-for-profits Commission. According to their web site they operate from 14 other local government localities. The organisation assists Aboriginal and Torres Strait Islanders, adults 25 to under 65, youth 15 to under 25, families, females, males, financially disadvantaged people, migrants, refugees or asylum seekers and people at risk of homelessness or experiencing homelessness, from a culturally and linguistically diverse background, in rural/regional/remote communities, with disabilities and those that are unemployed.


A summary of the services provided are schools, vocational education, language and literacy training, mentor support, parenting skills, school to work transition for those vulnerable, those at risk or disadvantaged in the community. The core components of these programs and services are 90% funded by Government Grants including from the Commonwealth Department of Education, Skills and Employment. Additional services that are self-funded by SMYL include on-site crèche, financial counselling, budgeting, healthy eating, resilience training and may include entry level skills development, employability skills, vouchers for fuel, clothing and essential resources and foodbank parcels.

 

Engagement with Western Australian Local Government Association (WALGA)

With respect more broadly to rate exemptions for charitable organisations, following a Council resolution in May 2019, the Mayor raised this issue with the South West Zone of WALGA (SWZ) at its meeting, also in May 2019. The SWZ supported the City of Busselton’s view unanimously and resolved as follows:

 

That the SWZ:

1.         Request that WALGA continue to lobby the State Government to consider the removal of rate exemptions for charitable organisations under the Local Government Act 1995 and that an alternative position may be implementing a rebate similar to the Pensioners and Seniors Rebate Scheme.

 

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

 

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

 

2.         Either:

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

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

 

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

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

 

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


 OFFICER COMMENT

In accordance with Section 6.26(2)(g) of the Act, land is not rateable if it is used exclusively for charitable purposes.

 

Rate exemption applications need to be considered in two parts. The first part is to assess whether the use itself is “charitable” and the second part is to determine whether the property is being used “exclusively” for charitable purposes.

 

In considering the first part, that is, ‘are the operations of SMYL considered to be a charitable use’, legal opinions have been consistent in defining a charitable purpose as land used for:

1.         The relief of poverty;

2.         The advancement of education;

3.         The advancement of religion; and

4.         Other purposes beneficial to the community.

 

It is considered that the vast majority of the programs and services provided by SMYL are charitable under definitions 1, 2 and 4 and as such the Property would be eligible for rate exemption under section 6.26(2)(g) of the Act.

 

In considering the second part, that is, ‘is the property being exclusively used for a charitable purpose’; this criteria is being met by SMYL as they are the sole occupier of the Property from which the programs and services are being provided.

 

As stated previously SMYL operate in 14 other local government localities. These Councils were contacted to determine the rating status of the occupied properties with only 7 responses received at the time of compiling this report. The following is a summary of the 7 rating status responses:

·                2 Rate exemption approved (NOTE: Occupy 4 rate exempt properties within City or Rockingham);

 

·                1 Rate concession approved;

 

·                2 Occupy part or all of Lotterywest or National Trust buildings that are not rated;

 

·                2 Occupy commercial buildings that is rated as no rate exemption application lodged.

 

No physical inspection of the Property has been carried out as its rating classification and the statutory declaration of the Property’s use (Attachment B) is considered to be sufficient.

 

Statutory Environment

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

 

Relevant Plans and Policies

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

 


Financial Implications

Granting rate exemption effective 1 March 2022 would see a $3,018 reduction to Councils 2021/22 rating income.

 

This rating income reduction would be approximately $9,348 for future financial years where the property continues to be leased by SMYL and used to provide the programs and services as per their rate exemption application.

 

If rate exemption is denied, then there may be costs incurred by the City if SMYL was to apply to the State Administrative Tribunal for a review of Council’s decision.

 

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.

That being said, if Council choses to not grant rate exemption, then staffing and/or legal costs may be incurred if the applicant refers the matter to the State Administrative Tribunal (SAT) for a review of the decision.

 

Options

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

CONCLUSION

It is considered that the programs and services provided by SMYL are charitable in nature. As such the property at 1A 9 Harris Road, Busselton is considered eligible for rate exemption under section 6.26(2)(g) of the Act.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

If rate exemption is granted on 1A 9 Harris Road, Busselton then it would be applied effective from the 1 March 2022, being the lease commencement date immediately.

 

 


Finance Committee

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13 April 2022

6.4

Attachment a

Rate Exemption Application

 





Finance Committee

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13 April 2022

6.4

Attachment b

Rate Exemption Application Statutory Declaration

 


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6.4

Attachment c

Rate Exemption Application Covering Letter

 



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6.4

Attachment d

Annual Report - 2020

 






















Finance Committee                                                             125                                                                   13 April 2022

6.5             BUDGET AMENDMENTS: KALOORUP ROAD BRIDGE FUNDING AND ALLOCATION OF SURPLUS FUNDS TO BPACC RESERVE

STRATEGIC THEME

LEADERSHIP - A Council that connects with the community and is accountable in its decision making.

STRATEGIC PRIORITY

4.5 Responsibly manage ratepayer funds to provide for community needs now and in the future.

SUBJECT INDEX

Budget amendment

BUSINESS UNIT

Finance and Corporate Services

REPORTING OFFICER

Director Finance and Corporate Services - Tony Nottle

AUTHORISING OFFICER

Director Finance and Corporate Services - Tony Nottle

NATURE OF DECISION

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

VOTING REQUIREMENT

Absolute Majority

ATTACHMENTS

Nil

 

OFFICER RECOMMENDATION

That the Council endorse:

1.         The following requested budget amendment, transferring the budgeted 2021/22 surplus to the Busselton Performing Arts & Conference Centre (BPACC) Reserve, up to the value of $1M:

Reference Item #

Description

Net Increase in Revenue

Net Additional Expenditure

Net Impact on Operational Budget

Net Impact on Cash

Net Impact on Reserves

1.

Transfer to BPACC Reserve

-

-

-

(1,000,000)

1,000,000

(i)        The net budget amendment, as outlined within this report and in accordance with section 6.8(1) of the Local Government Act 1995, results in a reduction of the budgeted surplus position to $98,182.

 

2.    That the Council agree to endorse a budget amendment to recognise that bridge works are to be completed on both Kaloorup Road Bridge #3380 and Kaloorup Road Bridge #3381, Jindong.

Cost Code Description

Account String

Amount

Kaloorup Road Bridge 3381

541.A0023.1210.0000

39,000

 debit

adjust revenue down

Kaloorup Road Bridge 3381

541.A0023.3280.0000

(39,000)

 credit

adjust cost down

Kaloorup Road Bridge 3380

541.NEW.1210.0000

(39,000)

 credit

adjust revenue up

Kaloorup Road Bridge 3380

541.NEW.3280.0000

39,000

 debit

adjust cost up

(i)        Nil impact on budget position

 


EXECUTIVE SUMMARY

This report seeks Council approval of budget amendments as detailed in this report. Adoption of the officer recommendations will result in a reduction of the City’s budgeted net current position.

 

BACKGROUND

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

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

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

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

 

Approval is therefore sought for the budget adjustments detailed below.

OFFICER COMMENT

Council adopted its 2021/2022 Municipal budget on Monday 26 July 2021 with a budget surplus position.  Since then, officers have identified budgets that require adjustment.  It is good management practice to revise the adopted budget when it is known that circumstances have changed. In keeping with this practice, budgets are reviewed on a regular basis.

 

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

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

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

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

 

Item 1 – BPACC Reserve Transfer

The adjustment that is required for item 1 of this budget amendment is of the type 1 category above, being an adjustment that will impact the budget balance.

 

The current amended budget surplus is $1,098,182.  Following the mid-year budget review, it is still expected that a budget surplus will eventuate.

 

Per the adopted budget, any surplus will be utilised in the following budget year as part of the overall municipal funding. 

 

In order to assist with the funding of the construction of the BPACC is it proposed to segregate up to $1M of any actual 2021/22 surplus into the BPACC Reserve, rather than effectively leaving this surplus in the municipal pool of funds.

 

The $1M funding was identified within the Council report at the 24 November meeting as part of the funding strategy for the BPACC (C2111/093). This budget amendment is to realise this funding in the reserve as per the funding strategy.

After making the above adjustments, the net municipal budget position for 2021/22 will be reduced to $98,182. 

 


Item 2 – Second Kaloorup Road Bridge

Kaloorup Road Bridge #3381 (A0023) was included on the 2021/22 Capital works budget value at $975,000. This budget needs to be reduced to $936,000 by $39,000.

 

Kaloorup Road Bridge #3380, a second bridge on the same road, had works scheduled valued at $39,000. Due to an administrative misunderstanding both these budgets were added together. A new budget needs to be added to account for this project separately.

 

Recording these projects individually is important due to the different sources of funding, how they will be administered, the timing on when works will be completed and subsequently how they are recorded financially.

 

Councils approval is sought to adjust the budget accordingly. This is a simple amendment.

 

Bridge #3381 on Kaloorup Road is to be replaced corresponding with the road widening that has recently occurred on that section of the road. Main Roads Western Australia (MRWA) is responsible for all major maintenance, renewal, upgrade and replacements of road bridges in the State including those owned by Local Governments. The detailed design and planning for this project valued at $138,000 has already been completed at a cost borne by MRWA. The cost to remove the old bridge and construct a new one is estimated at $936,000. $468,000 represents 50% of the cost is to be funded via the Federal Governments Bridge Renewal Program, while the remaining 50% will be funded by MRWA.

 

Kaloorup Road Bridge # 3381 – Scope of works                                                                                        $936,000

Replace with new bridge; replace bridge with a single span, 6.805m long concrete steel composite dowel-plank bridge; reinforced concrete abutments and parallel wing-walls; width between kerbs to be 9.04m; top mounted thrie-beam guardrails on bridge; w-beam guardrail extensions on all approaches and departures with extruder type end terminals; upgrade approximately 100m of road to tie existing road into new bridge.

 

A second bridge on Kaloorup Road #3380 has also had works scheduled to be completed in the 2021/22 Financial Year.

 

Kaloorup Road Bridge # 3380 – Scope of works                                                                                          $39,000

Substructure Repairs; Superstructure Repairs; Improve headroom in Span 1; Install HyLyte delineators on guardrail.

 

This project is being funded more traditionally on a 2/3rd 1/3rd basis, this time with the Federal Government funding 2/3rds valued at $26,000 via a Special Bridge Grant paid via the Financial Assistance Grant (FAG) arrangements. MRWA  is contributing the other 1/3rd valued at $13,000. The City has already received the $26,000 as part of its Financial Assistance Grant payment. The City will on-pay MRWA the $26,000 on completion of the project.

 

The City has recently been notified that these works will be completed this financial year.

 

Statutory Environment

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

 

Relevant Plans and Policies

There are multiple plans and policies that support the proposed budget amendments, in particular, the adopted 2021/22 budget and the recently endorsed Long Term Financial Plan.

 

Financial Implications

The details of the financial implications of these recommendations is shown below.

 

Ref Item #

Description

Net (Increase) / Decrease in Revenue

Net Increase / (Decrease) in Expenditure

Net Impact on Operational Budget

Net Impact on Capital Budget

Net Impact on Cash

Net Impact on Reserves

1.

Transfer to BPACC Reserve

-

-

-

 

(1,000,000)

1,000,000

2.

Kaloorup Road Bridge #3381

39,000

(39,000)

-

-

-

-

Kaloorup Road Bridge #3380

(39,000)

39,000

-

-

-

-

 

Stakeholder Consultation

No external stakeholder consultation was required or undertaken in relation to item 1. Main Roads was and continues to be consulted in relation to item 2.

 

Risk Assessment

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

 

Options

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

CONCLUSION

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

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

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

 


Finance Committee                                                             130                                                                   13 April 2022

6.6             BUDGET AMENDMENT FOR PERCENT FOR ART

STRATEGIC THEME

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

STRATEGIC PRIORITY

2.5 Facilitate events and cultural experiences that provide social connection.

SUBJECT INDEX

Budget Amendment

BUSINESS UNIT

Community Services

REPORTING OFFICER

Cultural Development Officer - Jacquie Happ

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   Location of Site and Easement

Attachment b    Artist Brief  

 

OFFICER RECOMMENDATION

That the Council endorses a budget amendment to transfer $13,750 of developer contributions from the Cash in Lieu Public Art Reserve and accepts $11,818 in contributions for the design and installation of mural in the Vasse Precinct.

EXECUTIVE SUMMARY

The City’s Cash in Lieu - Public Art Reserve - 341 collects cash in lieu funds from developer contributions through the Local Planning Policy No. 4.4 Percent for Art. Funds received are allocated to the precincts that they originate from. The funds are put towards artworks that will create vibrancy and interest in the precinct.

Funds are transferred from the City’s Public Art Reserve to the Cultural Planning budget. The funds transferred mentioned in this report will be used to pay for a public art consultant to assist in the selection of an artist to paint a mural and the cost of the mural in the Vasse Precinct.

BACKGROUND

The Vasse Precinct Developer commissioned a Public Art Strategy as a guide to creating a vibrant and engaging town centre. The City has been working with the Developer to commission artworks that are appropriate to the town centre, have a local and social theme, and are diverse in art form. The first artworks were commissioned and a public art consultant was engaged to manage the expression of interest process.

 

The Vasse Precinct has an allocation of funds in the City’s Cash in Lieu Public Art Reserve through contributions from McDonald’s and Coles (store and service station). According to the policy, these funds must be spent in the Vasse Precinct.  In 2018 three artworks were commissioned and installed through expenditure from the Public Art Reserve. City Officers work with the Developer, property owners and a public art consultant to procure the artworks for the Precinct. These artworks were installed in spaces that are thoroughfares or where there is high traffic movement of people and vehicles, or high visual outcomes. They were not installed on the properties that the funds were received from.

 


The artwork that is the subject of this report is to be located at Lot 114, 4 Warrior Court, Vasse. The building abuts the vacant land on Lot 113 Warrior Court Figure 1 (Attachment A - Location of Site and Easement).  Lot 113 has an easement of 6m for drainage and Public Access Figure 2 (Attachment A Location of Site and Easement). The easement will provide a buffer between the current and future buildings. It prevents a building being constructed hard up against the current property wall. While there is no guarantee that there will be a wider laneway, it is highly likely.

 

The draft Vasse Village Precinct Structure Plan by Hatch I Robert Day encourages street frontages with rear access for parking and services so there is a nil setback along Coomidup Boulevard. This means the easement will likely be wider or have a staggered building at various widths. The Lot 114 is currently sharing an access way Figure 1 (Attachment A).

 

Officers began working with the Developer and public art consultant on an artist brief in June 2021, through which appropriate themes were identified, as outlined in Attachment B - Artist Brief. The Developer and property owners have signed an Agreement for a Licence to allow the City to install and maintain artwork on the Lot.

 

The next stage requires the engagement of a public art consultant to conduct an Expression of Interest (EOI) process using the Artist Brief (Attachment B Artist Brief) and select an artist. The artist will then be commissioned by the City to paint the mural.

OFFICER COMMENT

There is currently $195,991 in Percent for Art 341 Public Art Reserve of which $32,296 is allocated to the Vasse Precinct. The Reserve funds are for artworks to be created in the precinct from where the funds are received. In 2018, there were three artworks commissioned for the Vasse Precinct using the Public Art Reserve funds. These are an overhead laneway canopy featuring artwork by Ian Mutch, a sculpture by Peter Zappa and a mural by Mel McVee.

 

The reserve funds are transferred to the Cultural Planning capital budget. The Developer and Owners of the property will be invoiced for additional funding. The funds will be used to contract a public art consultant and cost of the new mural. The project seeks to enhance a location that will become a laneway and linking space in the future.

 

Activating laneways is a positive way to design out crime as they keep spaces looking busy as people and vehicles move through them. This laneway is likely to be a short cut for pedestrians walking from parking between Warrior Court and Ganges Lane through to the commercial area.

 

The mural will provide high visual impact immediately and strong laneway visibility in the future. Examples of this sort of activation includes the recent Reject Shop artwork in Busselton (6.3m width) and Dunsborough’s Hannay Lane (7.9m).  These laneways attract people as they walk past and contribute to the vibrancy of the space.

 

A licence has been signed by the three parties to provide permission from the Owner to the City to install the mural and maintain it. The artwork will be commissioned through an EOI undertaken by the art consultant so it will comply with the City’s Purchasing Policy.

 


The project financials are shown in the table below.

 

ITEM #

ACCOUNT CODE STRING

DESCRIPTION

AMOUNT DR / (CR)

CURRENT BUDGET

AMENDED BUDGET

1

341 Public Art Reserve

Cash in Lieu contribution from Public Art Reserve (Vasse Precinct)

($13,750)

$0

($13,750)

2

330-10900-1300-0000

Contributions - Operating Activities

($11,818)

$0

($11,818)

3

330-10900-7743-0000

Exp Offset Acc-Furn & Equip

$25,568

$25,400*

$50,968

 

 

Net total

$0

$25,400

$25,400

 

*comprises funds for Sculpture by the Bay ($12,000) to be rolled over, Aboriginal artwork ($7,000) and furniture for the Ballaarat Room ($2,477), (Interpretation for Ballaarat Anniversary ($4,721) (Balance $292)

 

Statutory Environment

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

 

Relevant Plans and Policies

The Local Planning Policy 4.4 Percent for Art aligns to the officer recommendation, as it allows the City to commission artworks in precincts where cash in lieu contributions have been made by developers.

 

Financial Implications

The City’s net municipal cash budget position remains unchanged as a result of this budget amendment. 

 

Stakeholder Consultation

City Officers have worked with the Developer, property owner and the public art consultant on this project. External stakeholder consultation has been conducted by the Developer.

 

Risk Assessment

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

Options

As an alternative to the proposed recommendation the Council could refuse the recommendation to transfer funds. If the funds are refused, the Developer and property owner will be unable to proceed with the artwork. Both parties are likely to dispute the City’s Local Planning Policy 4.4 for Percent for Art given the request complies with the policy


CONCLUSION

Funds from the Local Planning Policy 4.4 Percent for Art allow for the commissioning of artwork in the precinct that the funds are received from. The funds will be used to contract a public art consultant to send out an EOI and contract an artist to produce a mural in the Vasse Precinct, under agreements executed between the City, the Developer and Public Art Consultant. The artwork will contribute to the aesthetic and vibrancy of the Vasse precinct.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Upon adoption by Council, the artwork EOI process will commence immediately.


Finance Committee

131

13 April 2022

6.6

Attachment a

Location of Site and Easement

 


Finance Committee

133

13 April 2022

6.6

Attachment b

Artist Brief

 






 


Finance Committee                                                             138                                                                   13 April 2022

7.               General Discussion Items

 

8.               Next Meeting Date

 

9.               Closure