MEETING NOTICE AND AGENDA – 27 April 2022

 

 

TO:                  THE MAYOR AND COUNCILLORS

 

 

NOTICE is given that a meeting of the Council will be held in the Council Chambers, Administration Building, Southern Drive, Busselton on Wednesday, 27 April 2022, commencing at 5.30pm.

 

Your attendance is respectfully requested.

 

 

DISCLAIMER

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

oliver darby   ACTING CHIEF EXECUTIVE OFFICER

14 April 2022

Agenda FOR THE Council MEETING TO BE HELD ON 27 April 2022

TABLE OF CONTENTS

 

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

2....... Attendance. 5

3....... Prayer. 5

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

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

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

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

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

Previous Council Meetings. 5

8.1          Minutes of the Council Meeting held 13 April 2022. 5

Committee Meetings. 6

8.2          Minutes of the Behaviour Complaints Commitee Meeting held 13 April 2022. 6

8.3          Minutes of the Finance Committee Meeting held 13 April 2022. 6

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

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

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

12..... Reports of Committee. 7

12.1        Finance Committee - 13/4/2022 - LIST OF PAYMENTS MADE - FEBRUARY 2022. 7

12.2        Finance Committee - 13/4/2022 - FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 28 FEBRUARY 2022. 17

12.3        Finance Committee - 13/4/2022 - ADOPTION OF THE SCHEDULE OF FEES AND CHARGES FOR THE 2022/23 FINANCIAL YEAR. 52

12.4        Finance Committee - 13/4/2022 - RATE EXEMPTION APPLICATION -  SOUTH METROPOLITAN YOUTH LINK INC. 93

12.5        Finance Committee - 13/4/2022 - BUDGET AMENDMENTS: KALOORUP ROAD BRIDGE FUNDING AND ALLOCATION OF SURPLUS FUNDS TO BPACC RESERVE. 125

12.6        Finance Committee - 13/4/2022 - BUDGET AMENDMENT FOR PERCENT FOR ART. 130

13..... Planning and Development Services Report. 141

14..... Engineering and Work Services Report. 142

15..... Community and Commercial Services Report. 143

16..... Finance and Corporate Services Report. 144

16.1        ALTERNATIVE COUNCIL MEETING SCHEDULE AND ORDINARY COUNCIL MEETING DATES. 144

17..... Chief Executive Officers Report. 154

17.1        COUNCILLORS INFORMATION BULLETIN.. 154

18..... Motions of which Previous Notice has been Given.. 158

19..... urgent business. 158

20..... Confidential Matters. 158

21..... Closure. 158

 

 

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

 

2.               Attendance 

Apologies

 

Approved Leave of Absence

 

Nil

 

3.               Prayer

 

4.               Application for Leave of Absence

 

5.               Disclosure Of Interests

 

6.               Announcements Without Discussion

Announcements by the Presiding Member

 

7.               Question Time For Public

Response to Previous Questions Taken on Notice

Public Question Time For Public

 

8.               Confirmation and Receipt Of Minutes 

Previous Council Meetings

8.1             Minutes of the Council Meeting held 13 April 2022

Recommendation That the Minutes of the Council Meeting held 13 April 2022 be confirmed as a true and correct record.

 

Committee Meetings

8.2             Minutes of the Behaviour Complaints Commitee Meeting held 13 April 2022

Recommendation That the Minutes of the Behaviour Complaints Committee Meeting held 13 April 2022 be noted.

8.3             Minutes of the Finance Committee Meeting held 13 April 2022

Recommendation That the Minutes of the Finance Committee Meeting held 13 April 2022 be noted.

 

9.               RECEIVING OF Petitions, Presentations AND DEPUTATIONS

Petitions

Presentations

Deputations

 

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

 

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

12.             Reports of Committee

12.1           Finance Committee - 13/4/2022 - 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⇩

This item was considered by the Finance Committee at its meeting on 13/4/2022, the recommendations from which have been included in this report.

COMMITTEE 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

 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.

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.

Council		10		27 April 2022
12.1	Attachment a		List of Payments - February 2022

 

12.2           Finance Committee - 13/4/2022 - 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⇩

This item was considered by the Finance Committee at its meeting on 13/4/2022, the recommendations from which have been included in this report.

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

OFFICER RECOMMENDATION

That the Council receives the statutory financial activity statement reports for the period ending 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.

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.

 

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.

 

 

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:

 

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:

 

 

3.      Other Expenditure  

$1.95M, or 48.01%, under the budget YTD. The main contributing items are listed below:

 

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.

 

5.      Capital Expenditure  

As at 28^th 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:

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 28^th 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 28^th February 2022 the 11AM account balance is $11.0M, down from $14M as at 31^st 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.

 

* 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 28^th 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.  

Council		38		27 April 2022
12.2	Attachment a		Loan Schedule - February 2022

 

Council		42		27 April 2022
12.2	Attachment b		Financial Activity Statement - February 2022

 

Council		51		27 April 2022
12.2	Attachment c		Investment Report - February 2022

 

12.3           Finance Committee - 13/4/2022 - 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⇩

This item was considered by the Finance Committee at its meeting on 13/4/2022, the recommendations from which have been included in this report.

COMMITTEE 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, subject to the following amendments: Description Previous Proposed Fee 2022/23 (Incl. GST) Amended Fee 2022/23 (Incl. GST) Outdoor Exercise Sites   Zone 1- Twelve (12) month fee $900 $860 Zone 1 – Six (6) month fee $450 $430 Zone 2 - Twelve (12) month fee $680 $650 Zone 2 – Six (6) month fee $340 $325   Reasons:       The Committee recognised that the proposed fees for the outdoor exercise sites were based on benchmarking with other local governments (an increase of 7%). However, in recognition of encouraging outdoor exercise, an increase of the existing fees for outdoor exercise sites only be increased by the standard fees and charges increase (2.6%).

OFFICER RECOMMENDATION

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

In accordance with Regulation 5(2) of the Local Government (Financial Management) 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.

 

·        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.

 

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 well-being 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 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. 

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 Local Government (Financial Management) 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, other than the Long Term Financial Plan which is discussed in the subsequent Financial Implications section.

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.

Council		60		27 April 2022
12.3	Attachment a		Draft Schedule of Fees and Charges for the 2022/23 Financial Year

 

12.4           Finance Committee - 13/4/2022 - 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⇩

This item was considered by the Finance Committee at its meeting on 13/4/2022, the recommendations from which have been included in this report.

COMMITTEE 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.

OFFICER RECOMMENDATION

That the Council:

1.         Grant a rate exemption to South Metropolitan Youth Link Inc. for 1A, 9 Harris Road, Busselton, effective 1^st 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 as to improve below functional 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 1^st 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 locations in 14 other Councils. 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.

 

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 unit 1A of the property from which the programs and services are being provided.

 

As stated previously SMYL operate locations in 14 other local government localitiess. 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 the City of 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 are 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 1A 9 Harris Road, Busselton 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 on 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.

 

 

Council		100		27 April 2022
12.4	Attachment a		Rate Exemption Application

 

Council		101		27 April 2022
12.4	Attachment b		Rate Exemption Application Statutory Declaration

 

Council		103		27 April 2022
12.4	Attachment c		Rate Exemption Application Covering Letter

 

Council		124		27 April 2022
12.4	Attachment d		Annual Report - 2020

 

12.5           Finance Committee - 13/4/2022 - 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

This item was considered by the Finance Committee at its meeting on 13/4/2022, the recommendations from which have been included in this report.

COMMITTEE RECOMMENDATION #1 That the Council endorse 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. Committee RECOMMENDATION #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. Reasons:              In accordance with clause 10.5 of the City’s Standing Orders Local Law 2018, the                                Presiding Member moved the motion in two parts for clarity.

 

 

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.

 

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. 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 to be funded via the Federal Governments Bridge Renewal Program, while the remaining 50% will be funded by MRWA.

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 2/3^rd 1/3^rd basis, this time with the Federal Government funding 2/3^rds valued at $26,000 via a Special Bridge Grant paid via the Financial Assistance Grant (FAG) arrangements. MRWA is contributing the other 1/3^rd 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.

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.

 

12.6           Finance Committee - 13/4/2022 - 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⇩

This item was considered by the Finance Committee at its meeting on 13/4/2022, the recommendations from which have been included in this report.

COMMITTEE 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.

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.

 

 

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.

 

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 o 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.

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.

Council		134		27 April 2022
12.6	Attachment a		Location of Site and Easement

 

Council		140		27 April 2022
12.6	Attachment b		Artist Brief