Please note:  These minutes are yet to be confirmed as a true record of proceedings

CITY OF BUSSELTON

MINUTES OF THE Finance Committee MEETING HELD ON 11 May 2022

TABLE OF CONTENTS

ITEM NO.                                        SUBJECT                                                                                                                              PAGE NO.

1....... Declaration of Opening, acknowledgement of country and Announcement of Visitors. 2

2....... Attendance. 2

3....... Public Question Time. 2

4....... Disclosure Of Interests. 2

5....... Confirmation Of Minutes. 3

5.1          Minutes of the Finance Committee Meeting held 13 April 2022. 3

6....... Reports. 4

6.1          AMENDED COMMITTEE MEETING DATES. 4

6.2          LIST OF PAYMENTS MADE - MARCH 2022. 7

6.3          FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 31 MARCH 2022. 18

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

7.1          CORRECTIONAL PERSONNAL – BUSHFIRE MITIGATION COSTS. 49

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

9....... Closure. 50

 


Finance Committee                                                             2                                                                         11 May 2022

MINUTES

 

MINUTES OF Finance Committee HELD IN THE Committee Room, Administration Building, Southern Drive, Busselton, ON 11 May 2022 AT 10.30am.

 

1.               Declaration of Opening, acknowledgement of country and Announcement of Visitors

The Presiding Member opened the meeting at 10.38am.

 

The Presiding Member noted this meeting is held on the lands of the Wadandi people and acknowledged them as Traditional Owners, paying respect to their Elders, past and present, and Aboriginal Elders of other communities who may be present.

 

2.               Attendance 

Presiding Member:

 

Members:

 

Cr Anne Ryan

 

 

Cr Grant Henley    

Cr Sue Riccelli

Cr Mikayla Love

Cr Paul Carter

 

Officers:

 

Mr Tony Nottle, Director, Finance and Corporate Services

Mr Paul Sheridan, Manager, Financial Services

Mrs Emma Heys, Governance Coordinator

 

Apologies:

 

Nil

 

3.               Public Question Time

Nil

 

4.               Disclosure Of Interests

Nil


5.               Confirmation Of Minutes

5.1             Minutes of the Finance Committee Meeting held 13 April 2022

Committee Decision

F2205/022               Moved Councillor P Carter, seconded Councillor S Riccelli

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

CARRIED 5/0

 


Finance Committee                                                             4                                                                         11 May 2022

6.               Reports

6.1             AMENDED COMMITTEE MEETING DATES

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

Committee Meetings

BUSINESS UNIT

Governance Services

REPORTING OFFICER

Governance Coordinator - Emma Heys

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

Nil

 

Committee DECISION

F2205/023               Moved Councillor S Riccelli, seconded Councillor G Henley

That the Committee adopts the following amended dates for the Finance Committee Meetings for July to December 2022:

·      Wednesday 6th July;

·      Wednesday 3rd August;

·      Wednesday 7th September;

·      Wednesday 5th October;

·      Wednesday 2nd November; and

·      Wednesday 7th December.

CARRIED 5/0

OFFICER RECOMMENDATION

That the Committee adopts the following amended dates for the Finance Committee Meetings for July to December 2022:

·        Wednesday 6th July;

·        Wednesday 3rd August;

·        Wednesday 7th September;

·        Wednesday 5th October;

·        Wednesday 2nd November; and

·        Wednesday 7th December.

 


EXECUTIVE SUMMARY

This report presents an amended meeting schedule for the Finance Committee for the period July to December 2022 for the Finance Committee’s endorsement.

 

BACKGROUND

At its Ordinary Meeting of Council 27 April 2022 (C2204/084) Council agreed to trial moving from two to one Ordinary Meetings of Council per month and subsequently adopted an alternative meeting schedule for the Ordinary Meetings of Council for the period July through to December 2022. Council will now hold one Community Access Session per month and one Ordinary Meeting of Council per month.

 

The change to meeting schedules is to assist in streamlining the City’s decision making practices and reduce both the administrative functions associated with meeting processes and the in person demands on Councillors.

 

As part of the change to meeting schedules, Council’s committee meeting schedules will also be amended, with the Finance Committee continuing to be held monthly, however moved to the first Wednesday of each month and the Policy and Legislation Committee being held bi-monthly on the first Wednesday of those particular months, with other committees on the alternative month.

 

OFFICER COMMENT

Under its terms of reference, the Finance Committee (the Committee) must meet at least six times per year. In September 2021, the terms of reference for the Committee were reviewed and revised by Council (C2109/201), including the provision of a delegated power to schedule and endorse the dates, times and locations of the meetings held by the Committee.

 

In accordance with regulation 12 of the Local Government (Administration) Regulations 1996, if a committee meeting is open to the public or proposed to be open to the public, the local government must give public notice of the dates, times and place at which the committee meetings are to be held in the next 12 months. Once endorsed by the Committee, the meeting dates will be publicly advertised.

 

Pursuant to regulation 34(4)(a) of the Local Government (Financial Management) Regulations 1996, a local government is statutorily obliged to present a monthly statement of financial activity to Council “within two months after the end of the month it relates to”. To facilitate this obligation, it is proposed that Committee meetings be held monthly, on the first Wednesday of each month.

 

Committee meetings will be held at 2.45pm, in the Wonnerup Committee Room, at the City of Busselton Administration Building.

 

Statutory Environment

The Council of the City of Busselton has established a standing committee known as the Finance Committee, pursuant to section 5.8 of the Local Government Act 1995.

 

Relevant Plans and Policies

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

 

Financial Implications

There are no financial implications associated with the officer recommendation.

 

Stakeholder Consultation

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

 

Risk Assessment

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

 

Options

As an alternative to the proposed recommendation, the Committee could propose different dates for its meetings to be held.

CONCLUSION

Following the adoption of an amended Council meeting schedule, the Committee are being asked to endorse an amended schedule of Finance Committee meeting dates for the period July to December 2022.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

The amended meeting schedule will be advertised within one week of the committee’s endorsement.


Finance Committee                                                             7                                                                         11 May 2022

6.2             LIST OF PAYMENTS MADE - MARCH 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 - March 2022  

 

Committee RECOMMENDATION

F2205/024               Moved Councillor P Carter, seconded Councillor G Henley

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

CHEQUE PAYMENTS

CHEQUE # 119178 - 119219

               135,717.24

ELECTRONIC TRANSFER PAYMENTS

EFT # 85799 - 85836 and 85840 - 86434

           9,044,895.36

TRUST ACCOUNT

CHEQUE # 7585 -7588 and EFT # 85837 - 85839

            46,082.12

PAYROLL PAYMENTS

01.03.22 - 31.03.22

          1,601,949.92

INTERNAL PAYMENT VOUCHERS

DD004793- DD004832

            167,966.01

TOTAL PAYMENTS

 

         10,996,610.65

 

CARRIED 5/0

OFFICER RECOMMENDATION

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

CHEQUE PAYMENTS

CHEQUE # 119178 - 119219

               135,717.24

ELECTRONIC TRANSFER PAYMENTS

EFT # 85799 - 85836 and 85840 - 86434

           9,044,895.36

TRUST ACCOUNT

CHEQUE # 7585 -7588 and EFT # 85837 - 85839

            46,082.12

PAYROLL PAYMENTS

01.03.22 - 31.03.22

          1,601,949.92

INTERNAL PAYMENT VOUCHERS

DD004793- DD004832

            167,966.01

TOTAL PAYMENTS

 

         10,996,610.65

 

EXECUTIVE SUMMARY

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

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable

.


Finance Committee

10

11 May 2022

6.2

Attachment a

List of Payments - March 2022

 










Finance Committee                                                             34                                                                      11 May 2022

6.3             FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 31 MARCH 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 Activity Statements

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 - March 2022

Attachment b    Investment Report - March 2022

Attachment c    Financial Activity Statement - March 2022  

 

Committee RECOMMENDATION

F2205/025               Moved Councillor P Carter, seconded Councillor M Love

That the Council receives the statutory financial activity statement reports for the period ending 31 March 2022, pursuant to Regulation 34(4) of the Local Government (Financial Management) Regulations 1996.

CARRIED 5/0

 

OFFICER RECOMMENDATION

That the Council receives the statutory financial activity statement reports for the period ending 31 March 2022, pursuant to Regulation 34(4) of the Local Government (Financial Management) Regulations 1996.

 

EXECUTIVE SUMMARY

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

 

This report has been compiled to fulfil the statutory reporting requirements of the Act and associated Regulations, whilst also providing the Council with an overview of the City’s financial performance on a year to date basis, for the period ending 31 March 2022.

 

BACKGROUND

The Regulations detail the form and manner in which financial activity statements are to be presented to the Council on a monthly basis, and are to include the following:

·        Annual budget estimates

·        Budget estimates to the end of the month in which the statement relates

·        Actual amounts of revenue and expenditure to the end of the month in which the statement relates

·        Material variances between budget estimates and actual revenue/expenditure (including an explanation of any material variances)

·        The net current assets at the end of the month to which the statement relates (including an explanation of the composition of the net current position)

 

Additionally, and pursuant to Regulation 34(5) of the Regulations, a local government is required to adopt a material variance reporting threshold in each financial year. At its meeting on 26 July 2021, the Council adopted (C2107/140) the following material variance reporting threshold for the 2021/22 financial year:

That pursuant to Regulation 34(5) of the Local Government (Financial Management) Regulations, the Council adopts a material variance reporting threshold with respect to financial activity statement reporting for the 2020/21 financial year as follows:

·        Variances equal to or greater than 10% of the year to date budget amount as detailed in the Income Statement by Nature and Type/Statement of Financial Activity report, however variances due to timing differences and/or seasonal adjustments are to be reported only if not to do so would present an incomplete picture of the financial performance for a particular period; and

·        Reporting of variances only applies for amounts greater than $25,000.

 

OFFICER COMMENT

In order to fulfil statutory reporting requirements and to provide the Council with a synopsis of the City’s overall financial performance on a year to date basis, the following financial reports are attached hereto:

 

Statement of Financial Activity

This report provides details of the City’s operating revenues and expenditures on a year to date basis, by nature and type (i.e. description). The report has been further extrapolated to include details of non-cash adjustments and capital revenues and expenditures, to identify the City’s net current position; which reconciles with that reflected in the associated Net Current Position report.

 

Net Current Position

This report provides details of the composition of the net current asset position on a full year basis, and reconciles with the net current position as per the Statement of Financial Activity.

 

Capital Acquisition Report

This report provides full year budget performance (by line item) in respect of the following capital expenditure activities: 

·        Land and Buildings

·        Plant and Equipment

·        Furniture and Equipment

·        Infrastructure

 

Reserve Movements Report

This report provides summary details of transfers to and from reserve funds, and associated interest earnings on reserve funds, on a full year basis.

 

Additional reports and/or charts can be provided as required to further supplement the information comprised within the statutory financial reports.

Comments on Financial Activity to 31 March 2022

The Statement of Financial Activity (FAS) for the year to date (YTD) shows an overall Net Current Position of $10.5M as opposed to the budget of ($6M). This represents a positive variance of $16.5M 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

 

1.56%

1,157,703

225,812

1.    Other Revenue

573,789

244,465

414,950

134.71%

329,324

49,926

2.    Interest Earnings

588,789

533,897

609,250

10.28%

54,892

17,997

Expenses from Ordinary Activities

10.98%

7,306,488

3,211,218

3.    Other Expenditure

(2,283,600)

(7,561,269)

(9,685,100)

69.80%

5,277,669

3,323,969

4.    Non-Operating Grants, Subsidies and Contributions

3,545,044

12,036,912

34,850,687

(70.55%)

(8,491,868)

(684,823)

Capital Revenue & (Expenditure)

 

28.08%

12,952,884

1,921,070

5.    Land & Buildings

(2,527,103)

(16,577,224)

(22,802,632)

84.76%

14,050,121

1,360,178

Plant & Equipment

(848,413)

(2,230,000)

(2,890,000)

61.95%

1,381,587

192,103

Furniture & Equipment

(327,684)

(562,541)

(828,800)

41.75%

234,857

(133,567)

Infrastructure

(14,106,305)

(26,585,758)

(38,537,750)

46.94%

12,479,453

2,370,410

6.    Proceeds from Sale of Assets

28,839

674,078

776,071

(95.72%)

(645,239)

(39,800)

7.    Proceeds from New Loans

11,325,000

15,450,000

25,450,000

(26.70%)

(4,125,000)

1,250,000

8.    Self Supporting Loans - Repayment of Principal

44,938

146,069

267,033

(69.24%)

(101,131)

(101,132)

9.   Total Loan Repayments – Principal

(2,285,208)

(2,625,919)

(3,839,418)

12.97%

340,711

107,638

10.  Advances to Community Groups

(1,325,000)

(5,450,000)

(5,450,000)

75.69%

4,125,000

(1,250,000)

11.  Transfer to Restricted Assets

(21,580,611)

(11,600)

(10,021,740)

(185939.75%)

(21,569,011)

(1,896,506)

12.  Transfer from Restricted Assets

6,856,622

0

1,735,682

100.00%

6,856,622

1,658,942


Revenue from Ordinary Activities

In total, revenue from Ordinary Activities is very close to budget at only 1.56% ahead YTD.  There are however material variance items contained within this category, on the face of the Financial Activity Statement, that require comment.

                                   

1.      Other Revenue

Ahead of YTD budget by $329K, or 134.7%, 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

53,945

47,927

6,018

12.56%

(109)

10360

Customer Services – Sale of Number Plates

9,818

3,150

6,668

211.69%

(630)

This financial year there has been a spike in people wishing to acquire personalised plates.

Planning and Development Services

121,100

94,478

26,622

28.18%

38,710

10942

Bushfire Risk Management Planning – DFES – Sundry Income

37,861

 -

37,861

(100.00%)

37,861

This is the DFES contribution to the shared bushfire risk mitigation coordinator position - as per bushfire risk management planning program grant agreement May 2021.

10950, 10960, 10970

Animal, Litter & Parking Control – Fines & Prosecutions

40,774

58,530

(17,756)

(30.34%)

(5,076)

Result impacted by improved public compliance coupled with a shift in focus away from prosecution toward education.

Engineering and Works Services

396,866

98,158

298,708

304.31%

12,252

11107

Engineering Services Design – LSL Contribution from Other LGA

10,897

 -

10,897

(100.00%)

10,897

At the time of Budget development a staff member had not planned to take LSL, which has since changed. We have now received the contribution of the previous employer.

12642

NCC Standpipe – Sale of Water

25,396

9,073

16,323

179.90%

 -

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

358,942

89,085

269,857

302.92%

1,355

Prices received for scrap metal have been favourable affecting the positive result.  Due to the more favourable prices, a higher volume of scrap metal was sold from stockpiles.

 

2.      Interest Earnings

Ahead of YTD budget by $54.9K, or 10.28%, due to a slight increase in interest rates being offered on investments over the last few months.

 


Expenses from Ordinary Activities

Expenditure from ordinary activities is $7.3M, or 10.98%, less than expected when compared to the budget YTD as at March. 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.

 

3.      Other Expenditure  

$5.3M, or 69.8%, 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

89,813

62,253

(27,560)

(44.3%)

(7,904)

10001

Office of the CEO

41,995

62,253

20,258

32.5%

(1,395)

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

10011

Emergency Contingency Costs (Other)

47,818

 -

(47,818)

(100.0%)

(6,509)

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

874,464

839,127

(35,337)

(4.2%)

8,758

10000

Members of Council

479,495

544,310

64,815

11.9%

3,411

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

31,296

45,819

14,523

31.7%

2,465

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

1,042,318

6,419,239

5,376,921

83.8%

3,344,968

10532

BPACC Operations

2,860

37,500

34,640

92.4%

12,500

BPACC operational activity will not commence until 2023.

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 is expected before the end of financial year.

10543

Community Development

97,634

176,318

78,684

44.6%

34,435

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

557,155

969,448

412,293

42.5%

25,729

The YTD underspend to budget can be explained as follows:

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

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

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

·    A further $192K was forecast to have been incurred by YTD March ($110K for Winter Wonderland, and approximately $72K in general unallocated funds).

10630

Economic and Business Development Administration

126,600

140,637

14,037

10.0%

44,917

This is due to a number of underspends including allocations towards cruise ship visitor servicing, advertising and valuation expenses.

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

1,978

1,729,584

1,727,606

99.9%

195,690

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

11160

Busselton Jetty

 -

3,000,000

3,000,000

100.0%

3,000,000

The budget YTD represents the City’s contribution to the AUDC project, which has been deferred.  This was to funded from the Jetty Reserve, so it will remain in the reserve at year end.

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

100,371

85,463

(14,908)

(17.4%)

(29,473)

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.

10942

Bushfire Risk Management Planning – DFES

27,145

 -

(27,145)

(100.0%)

(27,145)

This unbudgeted spend represents the return of unspent grant funds to DFES for the 20/21 BRP program.

Engineering and Works Services

176,634

155,187

(21,447)

(13.8%)

7,620

10830

Environmental Management Administration

16,037

937

(15,100)

(1611.5%)

143

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

118,176

50,000

(68,176)

(136.4%)

8,636

Rendezvous Road Refuse site remedial works.

 

4.     Non-Operating Grants, Subsidies & Contributions  

The negative variance of $8.5M 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

 -

164,351

(164,351)

(100.0%)

(48,975)

10540

Recreation Administration

 -

76,875

(76,875)

(100.0%)

(25,625)

10590

Naturaliste Community Centre

 -

70,050

(70,050)

(100.0%)

(23,350)

C6010

Airport Fencing Works

 -

17,426

(17,426)

(100.0%)

 -

Engineering and Works Services

3,066,082

11,807,561

(8,741,479)

(74.0%)

(635,848)

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%)

 -

A0023

Kaloorup Road Bridge – 3381 – Federal Capital Grant

 -

234,000

(234,000)

(100.0%)

(234,000)

A0024

Boallia Road Bridge – 4854 – Federal Capital Grant

 -

143,750

(143,750)

(100.0%)

(143,750)

A0025

Tuart Drive Bridge 0238 – Developer Cont. Utilised

 -

667,583

(667,583)

(100.0%)

(667,583)

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%)

 -

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%

 -

C3225

Dunsborough Lakes Sporting Precinct (Stage 1) – Developer Cont. Utilised

944,234

 -

944,234

100.0%

944,234

C3243

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

 -

643,198

(643,198)

(100.0%)

(321,599)

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

 -

1,122,000

(1,122,000)

(100.0%)

(374,000)

S0335

Kaloorup Road – MR Capital Grant

 -

361,425

(361,425)

(100.0%)

(120,475)

S0336

Wildwood Road – MR Capital Grant

750,200

1,406,625

(656,425)

(46.7%)

281,325

 

5.      Capital Expenditure  

As at YTD March, there is an underspend variance of 61.2%, or $28.1M, in total capital expenditure, with YTD actual at $17.8M against the YTD budget of $46M. 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

37,503

34,904

93.1%

4,167

10610

Property Services Administration

2,599

37,503

34,904

93.1%

4,167

This is a contingency fund for costs associated with land acquisition or disposal under the LTFP, such as advertising costs in relation to the proposed disposition of freehold land holdings at Ambergate.

Buildings

2,524,505

16,539,721

14,015,216

84.7%

1,356,011

B9614

Dunsborough Lakes Sporting Precinct-Pavilion /Changeroom Facilities

12,272

687,501

675,229

98.2%

203,267

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

121,889

100,000

(21,889)

(21.9%)

7,482

Cladding replacement commenced in January and was completed toward the end of February.  Associated billing from the supplier is expected to be completed by the end of April, totalling approximately $430K, which will be less than the forecast of $500K.

Various

Busselton Performing Arts Convention Centre

1,747,955

13,892,593

12,144,638

87.4%

978,599

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.

B9300/1/2

Aged Housing

Capital Improvements

38,148

182,250

144,102

79.1%

35,652

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 capex spend of circa $28,000 for bathroom upgrades and reflux valves and a possible further $70,000 for replacement carports.  

B9596

GLC Building Improvements

87,464

213,852

126,388

59.1%

61,936

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)

116,897

164,240

47,343

28.8%

225

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.  These were not factored in at the time of developing the budget.

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

75,617

212,850

137,233

64.5%

(2,056)

RFQ for installation of lights was awarded with works commenced in March 2022.  Supplier billing will follow completion of the works.

B9615

Naturaliste Community Centre AMP

641

72,000

71,359

99.1%

14,400

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

B9616

Buildings Asset Management Plan High Use Allocation

92,319

120,000

27,681

23.1%

18,094

This budget will be fully expended come June 30. The budget is used for various maintenance activities on numerous buildings across the City.


 

B9617

Buildings AMP Renewal Allocation - Meelup Ablution

7,389

160,000

152,611

95.4%

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%

 -

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

848,413

2,230,000

1,381,587

62.0%

192,103

10250

Information & Communication Technology Services

 -

40,000

40,000

100.0%

 -

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%

 -

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%

 -

Survey equipment incorrectly budgeted here, but actual cost has been allocated under Furniture & Office Equipment. 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%)

 -

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

544,000

413,514

76.0%

180,000

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.

11407

P&E - P&G Smart Technologies

 -

25,000

25,000

100.0%

25,000

This budget was to be used for investment in smart technologies to manage / address drying climate, however plans have not yet been developed for its use.  Funds will remain in reserve if not spent for this purpose by year end.

11500

Operations Services Administration

 -

40,000

40,000

100.0%

 -

Vehicle ordered, delivery expected in April.

G0013

Domestic Organics Collections (FOGO)

12,897

 -

(12,897)

(100.0%)

 -

At the time of setting the budget of $75K for investigative works and FOGO trials, it was unknown what sort of activities would be undertaken.  As such, the full year budget of $75K has been allocated to an operational contractors line, where in fact we needed to purchase some monitoring equipment to affix to the trucks.  There should be an underspend against budget in the contractor line that will offset this spend against a nil budget.

Furniture & Office Equipment

327,684

562,541

234,857

41.7%

(133,567)

10250

Information & Communication Technology Services

163,250

220,891

57,641

26.1%

(65,467)

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

51,650

35,324

68.4%

8,350

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.

11107

Engineering Services Design

73,211

 -

(73,211)

(100.0%)

(73,211)

Survey equipment that was incorrectly budgeted for under Plant & Equipment.

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

14,106,305

26,585,758

12,479,453

46.9%

2,370,410

Various

Roads

5,592,539

8,506,528

2,913,989

34.3%

711,200

Many road construction projects are now well 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.

                      46% of the YTD variance valued at $1.351m is associated with the two remaining Regional Road Safety Program projects that are both currently in progress. The $1.465m in committed works will be receipted against invoices prior to June 30.  

                      15% of the YTD variance valued at $442k is associated with the Peel Terrace/ Queen street roundabout renewal works recently completed in April. This variance will swing into a deficit positon upon receipt of all invoices associated with the project. The project will exceed the budget due to increases in the work scope and unforeseen unfavourable ground conditions identified. City officers have secured a transfer of unspent Regional Road Group grant monies that will be applied against this project together with an additional draw down of funds from the City’s Major traffic Improvement Reserve. A report will go to Council on this matter.

There will be a significant under expended variance to budget associated with road projects come June 30.

Various

Bridges

630

2,682,997

2,682,367

100.0%

1,238,367

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

828,088

1,805,750

977,662

54.1%

(153,887)

52% of the YTD variance valued at $511k is associated with the new car parking for the Dunsborough Lakes Sporting Precinct. Works are well under way with the first progress payment of $281k made in March.  

The following two projects will not be completed this year and thus will represent under expenditures come June 30:

                      Dunsborough Chieftain Crescent Carpark Extension $129k YTD,  annual budget $240k.

                      Hotel Site 2 Carpark $230k YTD.

There will be a significant under expended variance to budget associated with Car Parks projects come June 30.

Various

Footpaths & Cycleways

625,185

1,458,620

833,435

57.1%

137,180

29% of the year to date variance totalling $241k is associated with the $500k Busselton CBD Footpath Renewal project where the majority of this project has temporarily been put on-hold pending further review and potential re list.

12% of the YTD variance valued at $105K is associated with the Buayanup Drain Shared path project. Not all of this 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.

14% of the YTD variance valued at $116K is associated with the Causeway Road Shared Path project. Tender prices for these works have come in higher than anticipated and it is thus unclear if this project will proceed this financial year.

There will be a significant under expended variance to budget associated with Footpaths & Cycleway projects come June 30.

Parks, Gardens & Reserves

6,784,883

11,669,123

4,884,240

41.9%

501,173

Various

Busselton Jetty - Capital Expenditure

236,223

545,048

308,825

56.7%

(33,317)

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

60,148

1,136,800

1,076,652

94.7%

127,522

72% of the variance valued at $775k 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 has now commenced with committed costs totalling $691k. The expectation is that it will be completed prior by June 30 weather permitting.  

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 with a major portion of the funding anticipated to be outlaid before the end of the FY; subject to the availability of resources and material.

Various

Waste Services

912,321

1,512,500

600,179

39.7%

207,349

Works associated with the Busselton Landfill Post-Closure Capping, Rehab & Remediation budget set at $1m are $657k under budget YTD with the focus this year having shifted to the development of stage two phase 1  of the Dunsborough landfill budgeted at $500k taking priority.   

There will be a significant under expended variance to budget associated with Waste Services projects come June 30.

Various

Townscape & Vasse River

53,576

1,023,264

969,688

94.8%

243,569

No townscape 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

5,522,615

7,451,511

1,928,896

25.9%

(43,950)

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

Regional Airport & Industrial Park Infrastructure

93,288

286,740

193,452

67.5%

66,254

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 $674K. 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 March it was forecast that a self-supporting loan of $4M 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 $4.125M negative variance YTD.

 

This is offset by a corresponding positive timing variance of $4.125M in Advances to Community Groups.

 

8.     Self Supporting Loans – Repayments of Principal

         This line is $101K under budget due to the AUDC loan not proceeding.

 

9.     Total Loan Repayments - Principal

         Repayments of the principal on loans is $340K under budget YTD, due to the loan for the BPACC not proceeding in the timeframe as budgeted, as well as the deferment of the AUDC and hence the non-draw down of the associated loan (offset per #8 above).

 

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 $4.125M 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 $21.6M because there is no budget for this item during the year.  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, and in what timeframe, nor when they will be spent and hence potentially transferred to Restricted Assets (or unspent portions thereof). 

 

YTD, loans of $10M were received for BPACC that were transferred to restricted assets until utilized, as well as $7.9M in various government grants, plus $1.6M in Roadwork Bonds, and $3.7M in developer contributions, deposits and bonds.

 

12.   Transfer from Restricted Assets

YTD, there has been $6.9M transferred from Restricted Assets into the Municipal Account. This was attributable to $2.19M of grant money for works completed and reconciled, $687K of Roadwork Bonds, $462K of caravan park deposit refunds, utilization of $1.7M of restricted loan money (BPACC), and $1.9M of various other bonds and deposits.

 

Investment Report

Pursuant to the Council’s Investment Policy, a report is to be provided to the Council on a monthly basis, detailing the investment portfolio in terms of performance and counterparty percentage exposure of total portfolio. The report is also to provide details of investment income earned against budget, whilst confirming compliance of the portfolio with legislative and policy limits.

 

As at 31st March 2022 the value of the City’s invested funds remained at $97M from 28th February 2022.

 

As at 31st March 2022 the 11AM account balance is $13.0M, up from $11M as at 28th February 2022 due to the closure of MEBank Term Deposit of $2M.

 

During the month of March seven term deposits totalling the amount of $20M matured, including the closure of the MEBank Term Deposit as transferred to 11am account above. . These were renewed for a further 93 days at 0.54% on average.

 

The official cash rate remains steady for the month of March at 0.10%.  This will continue to have an impact on the City’s interest earnings for the foreseeable future.

 

Borrowings Update

During the month a self-supporting loan of $1.25M was drawn down and on-lent to the MRBTA for their Ancient Lands Discovery Park.  Also, $670K of principal and $250K of interest was repaid on existing loans.  The attached Loan Schedule outlines the status of all existing loans as at March YTD.

 

Chief Executive Officer – Corporate Credit Card

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

 

Date

Payee

Description

$ Amount

10/03/22

City of Busselton

Geographe Leisure Centre Café – CEO Morning tea with GLC Team

$73.20

29/03/22

Event Brite Ticket - Tonic By The Bay

Budget Breakfast 2022 -  1 April 2022 M. Archer

$32.74

 

 

TOTAL

$105.94

 

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 31st March 2022, the City’s net current position stands at $10.5M. The City’s financial performance is considered satisfactory, and cash reserves remain strong.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.

 


Finance Committee

35

11 May 2022

6.3

Attachment a

Loan Schedule - March 2022

 


Finance Committee

36

11 May 2022

6.3

Attachment b

Investment Report - March 2022

 


Finance Committee

38

11 May 2022

6.3

Attachment c

Financial Activity Statement - March 2022

 












 


Finance Committee                                                             50                                                                      11 May 2022

7.               General Discussion Items

7.1             CORRECTIONAL PERSONNAL – BUSHFIRE MITIGATION COSTS

Cr Love raised the feasibility of hiring correctional personnel to assist with bushfire mitigation activities in the district. It was felt this may be an opportunity to reduce costs and enable the City to direct funding into other areas of need.

 

Mr Tony Nottle, Director Finance and Corporate Services will look further into the program.

 

8.               Next Meeting Date

Wednesday, 8 June 2022.


9.               Closure

The meeting closed at 11.00am.

 

THESE MINUTES CONSISTING OF PAGES 1 TO 50 WERE CONFIRMED AS A TRUE AND CORRECT RECORD ON Wednesday, 8 June 2022.

 

DATE:_________________              PRESIDING MEMBER: _________________________