Finance Committee Agenda

 

 

 

8 June 2022

 

 

 

 

 


ALL INFORMATION AVAILABLE IN VARIOUS FORMATS ON REQUEST

city@busselton.wa.gov.au

 

 


CITY OF BUSSELTON

MEETING NOTICE AND AGENDA – 8 June 2022

 

 

 

TO:                  THE MAYOR AND COUNCILLORS

 

 

NOTICE is given that a meeting of the Finance Committee will be held in the Committee Room, Administration Building, Southern Drive, Busselton on Wednesday, 8 June 2022, commencing at 10.00am.

 

The attendance of Committee Members is respectfully requested.

 

 

DISCLAIMER

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

 

 

 

Tony Nottle

 

ACTING CHIEF EXECUTIVE OFFICER

 

3 June 2022


CITY OF BUSSELTON

Agenda FOR THE Finance Committee MEETING TO BE HELD ON 8 June 2022

TABLE OF CONTENTS

 

ITEM NO.                                        SUBJECT                                                                                                                              PAGE NO.

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

2....... Attendance. 4

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

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

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

5.1          Minutes of the Finance Committee Meeting held 11 May 2022. 4

6....... Reports. 5

6.1          LIST OF PAYMENTS MADE - APRIL 2022. 5

6.2          FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 30 APRIL 2022. 15

6.3          BUDGET AMENDMENT REQUEST - LOWER VASSE RIVER SEDIMENT REMOVAL PROJECT. 47

6.4          BUDGET AMENDMENT - EWS VARIOUS PROJECTS. 50

7....... General Discussion Items. 61

8....... Next Meeting Date. 61

9....... Closure. 61

 


Finance Committee                                                             4                                                                           8 June 2022

 

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

 

2.               Attendance 

Apologies

 

3.               Public Question Time

 

4.               Disclosure Of Interests

 

5.               Confirmation Of Minutes

5.1             Minutes of the Finance Committee Meeting held 11 May 2022

Recommendation

That the Minutes of the Finance Committee Meeting held 11 May 2022 be confirmed as a true and correct record.

 


Finance Committee                                                             5                                                                           8 June 2022

6.               Reports

6.1             LIST OF PAYMENTS MADE - APRIL 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 - April 2022  

 

OFFICER RECOMMENDATION

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

CHEQUE PAYMENTS

CHEQUE # 119220 - 119247

                  37,911.19

ELECTRONIC FUNDS TRANSFER PAYMENTS

EFT # 86435 - 86783 and 86787 - 87066 

            6,673,369.55

TRUST ACCOUNT PAYMENTS

EFT # 86784 - 86786

                  53,792.34

PAYROLL PAYMENTS

01.04.22 - 30.04.22

            1,657,295.04

INTERNAL PAYMENT VOUCHERS

DD # 4833 - 4864, 5194 and 5214

               159,748.56

TOTAL PAYMENTS

 

            8,582,116.68

 

EXECUTIVE SUMMARY

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

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.


Finance Committee

14

8 June 2022

6.1

Attachment a

List of Payments - April 2022

 









Finance Committee                                                             32                                                                        8 June 2022

6.2             FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 30 APRIL 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 - April 2022

Attachment b    Financial Activity Statement - April 2022

Attachment c    Investment Report - April 2022  

 

OFFICER RECOMMENDATION

That the Council receives the statutory financial activity statement reports for the period ending 30 April 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 30 April 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 30 April 2022

The Statement of Financial Activity (FAS) for the year to date (YTD) shows an overall Net Current Position of $5.2M as opposed to the budget of ($13.8M). This represents a positive variance of $19M 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

 

4.89%

3,678,863

2,521,159

1.    Operating Grants, Subsidies and Contributions

5,693,133

3,208,801

4,841,906

77.42%

2,484,332

2,452,729

2.    Other Revenue

554,622

259,606

414,950

113.64%

295,016

(34,308)

3.    Interest Earnings

623,855

561,825

609,250

11.04%

62,030

7,138

Expenses from Ordinary Activities

10.54%

7,702,199

395,711

4.    Other Expenditure

(2,577,928)

(7,914,980)

(9,685,100)

67.43%

5,337,052

59,383

Capital Revenue & (Expenditure)

 

27.55%

14,693,764

1,740,880

5.    Land & Buildings

(3,451,811)

(18,431,270)

(22,802,632)

81.27%

14,979,459

929,338

Plant & Equipment

(884,495)

(2,810,000)

(2,890,000)

68.52%

1,925,505

543,918

Furniture & Equipment

(351,197)

(562,541)

(854,368)

37.57%

211,344

(23,514)

Infrastructure

(16,324,772)

(29,953,087)

(38,537,750)

45.50%

13,628,315

1,148,862

6.    Proceeds from Sale of Assets

28,839

776,071

776,071

(96.28%)

(747,232)

(101,993)

7.    Proceeds from New Loans

21,325,000

25,450,000

25,450,000

(16.21%)

(4,125,000)

0

8.    Self Supporting Loans - Repayment of Principal

55,517

146,069

267,033

(61.99%)

(90,552)

10,580

9.   Total Loan Repayments – Principal

(2,720,229)

(3,050,391)

(3,839,418)

10.82%

330,162

(10,549)

10.  Advances to Community Groups

(1,325,000)

(5,450,000)

(5,450,000)

75.69%

4,125,000

0

11.  Transfer to Restricted Assets

(32,260,662)

(10,011,600)

(10,021,740)

(222.23%)

(22,249,062)

(680,051)

12.  Transfer from Restricted Assets

8,073,017

0

1,735,682

100.00%

8,073,017

1,216,394

13.  Transfer to Reserves

(19,466,479)

(17,651,351)

(23,109,232)

(10.28%)

(1,815,128)

(1,952,648)


Revenue from Ordinary Activities

In total, revenue from Ordinary Activities is close to budget, being 4.72% ahead YTD.  There are however material variance items contained within this category, on the face of the Financial Activity Statement, that require comment.

 

1.      Operating Grants, Subsidies & Contributions

Ahead of YTD budget by $2.5M, or 77.4%, 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 and Corporate Services

3,329,852

1,339,927

1,989,925

148.51%

1,846,442

10250

Information & Communication Technology Services – Other Grants & Subsidies

20,363

 -

20,363

(100.00%)

 -

YTD amount recognised represents the subsidies received for the trainee being utilised in the Information Services business unit.  This was not included in budget at the time of development as it was not known whether a trainee would be placed in this financial year.

10152

Other General Purpose Funding - Grants Commission

3,073,628

1,050,040

2,023,588

192.72%

1,867,567

The variance is due to a prepayment of the 22/23 Financial Assistance Grant.  This has been restricted and transferred into the Prepaid Grants Reserve, so will have a nil impact on the net current position for 21/22. It will be unrestricted and transferred back out to be utilised in the 22/23 year.

10151

Rates Administration – Legal Fees Reimbursement

45,961

23,531

22,430

95.32%

1,199

The higher than expected legal fees reimbursement is due to the higher than expected debt recovery proceedings.  All legal costs are recoverable from the properties involved.

10200

Financial Services – Insurance Recoveries

28,197

104,750

(76,553)

(73.08%)

(26,238)

When and how much insurance claims will be is not possible to predict. The full year budget has been allocated over the year based on the monthly trend over the last 4 years.

10227

Finance & Borrowing – Repayment of Interest on Self Supporting Loans

12,579

45,318

(32,739)

(72.24%)

1,910

This is lower than expected due to the SSL not proceeding for the AUDC.  It is offset by lower interest expenses.

B1517

Goose Café – Utilities Reimbursements

 -

10,000

(10,000)

(100.00%)

 -

Nothing received, as there were no costs incurred for which CoB needed to be reimbursed for, due to the café burning down.  The budget was set prior to this occurring, and has nil impact on the NCP due to a corresponding offset in utility costs.

Community and Commercial Services

179,194

348,803

(169,609)

(48.63%)

57,268

10542

Club Development – State Government Grants

 -

22,500

(22,500)

(100.00%)

 -

A $30K grant is due from DLGSCI, and activities conducted will be reconciled at year end to determine how much of the grant can be recognised as revenue.


 

10543

Community Development – State Government Grants

6,397

120,000

(113,603)

(94.67%)

 -

The Lottery West grant of $53K for the Strengthening Communities Program was received in July and is gradually being expended.  A reconciliation will done at year end to determine how much of the grant needs to be recognised as income to offset the expenditure.  A % will require carry over into 22/23 FY as the grant is over 2 years.

10625

Art Geo Administration – State Government Grants

 -

10,721

(10,721)

(100.00%)

 -

Grant funding for the Interpretation Plan for the cultural precinct, completed earlier in the year, are expected in May.

11151

Airport Operations – Contributions

 -

50,000

(50,000)

(100.00%)

 -

This was a RADS grant (Dept of Transport) that has been delayed by DOT. The project will commence in the new FY including receipt of the $50k.

B1361

YCAB (Youth Precinct Foreshore) – Contributions

50,078

38,000

12,078

31.78%

46,327

$40K of the actuals relate to the sponsorship cash from Rio Tinto for the continuation of youth services activities in Busselton and Dunsborough.  There have also been various other grants recognised for completed activities, such as Crime Prevention, SW Youth Fest and leadership Camp, the were not fully catered for at the time of creating the budget in early 2021.

10380

Busselton Library – Parenting Payment Reimbursements

14,749

1,150

13,599

1182.50%

(69)

It was not known at time of setting the budget that these payments would be forthcoming.

Planning and Development Services

916,182

872,775

43,407

4.97%

141,149

10820

Strategic Planning – State Government Grants

 -

18,750

(18,750)

(100.00%)

 -

This grant funding, provided by DPLH, relates to the CHRMAP project which was anticipated to be completed earlier in the financial year but has been held up in response to concerns raised by residents in Siesta Park and Marybrook.  The CHRMAP will be taken to Council in June and, if approved, the final grant payment will be actioned.

10925

Preventative Services – CLAG – Health Dept Grant

45,916

33,250

12,666

38.09%

 -

The CLAG funding received from Dept of Health is more than budgeted due to an anticipated long mosquito breeding season in 2021-22 and very limited larvicide product carried over from the previous season, requiring an increase in the larvicide product funding approved.

10940

Fire Prevention DFES – Contributions

65,746

33,196

32,550

98.05%

65,746

The reconciliation of the Fire Prevention activities conducted in the 1st, 2nd and 3rd quarters resulted in higher than predicted billing and recognition of contributions from DFES.

Engineering and Works Services

1,267,904

647,296

620,608

95.88%

407,870

10830

Environmental Management Administration – State Government Grants

 -

11,100

(11,100)

(100.00%)

 -

This money is the Western Ringtail Possum Habitat Revegetation Project. This project has been running for four years and we are now into the final season. The Grant has to be acquitted by the end of September 2022.

The money comes from the national Landcare Program but South West Catchments Council contract us to undertake the works. We invoice SWCC.

The City spends the money first to implement the project then through the annual reporting system sends an invoice to recoup the costs.


 

11160

Busselton Jetty – Contributions

727,173

438,294

288,879

65.91%

363,586

The full year contributions from BJINC have now been received, earlier than forecast in the budget.  Full year contributions will be $149K less than budget, as the gross margin at the Jetty (upon which the contributions are based), were significantly affected by COVID, and the budget for 21/22 was set on prior years (early 2021), well before the audited financials for BJINC were available (October 2021).

11301

Regional Waste Management Administration

45,659

15,304

30,355

198.34%

(15,304)

Other Councils have contributed more than was originally forecast in the budget.

11404

Plant Purchases (12) – Insurance Recoveries

11,900

 -

11,900

(100.00%)

11,900

Not something that can be predicted or budgeted for.  Has nil impact on the net result as anything received forms part of what is transferred to the Plant Reserve at year end.

11501

Operations Services Works – Workers compensation Reimbursements

251,711

52,020

199,691

383.87%

19,684

Not possible to predict when or how much in workers compensation claims are going to be received.  Budget has been allocated evenly over the year.

C8500

Cycleways Maintenance Busselton – Sundry Reimbursements

12,472

 -

12,472

(100.00%)

 -

This amount represents a reimbursement from Main Roads for costs incurred pruning along the bypass cycleway, for which no budget was included.

 

2.      Other Revenue

Ahead of YTD budget by $295K, or 113.6%, 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

54,613

49,419

5,194

10.51%

(824)

10360

Customer Services – Sale of Number Plates

10,636

3,780

6,856

181.38%

188

This financial year there has been an increase in people wishing to acquire personalised plates.

Community & Commercial Services

10,172

4,435

5,737

129.35%

7,761

10380

Busselton Library – Sundry Income

7,500

 -

7,500

(100.00%)

6,000

This income item represents grants received by the Busselton Library from the State Library to assist our senior citizens with understanding and navigating the Health Departments Secure WA app.

Planning & Development Services

86,955

100,808

(13,853)

(13.74%)

(40,475)

10950, 10960, 10970

Animal, Litter & Parking Control – Fines & Prosecutions

42,666

63,199

(20,533)

(32.49%)

(2,777)

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


 

Engineering & Works Services

402,882

104,944

297,938

283.90%

(770)

11107

Engineering Services Design – LSL Contribution from Other LGA

10,897

 -

10,897

(100.00%)

 -

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

14,509

10,887

75.03%

(5,436)

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

90,435

268,507

296.91%

(1,350)

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.

 

3.      Interest Earnings

Ahead of YTD budget by $62K, or 11%, due to an increase in interest rates being offered on investments over the last few months.

 

Expenses from Ordinary Activities

Expenditure from ordinary activities is $7.7M, or 10.5%, less than expected when compared to the budget YTD. 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.

 

4.      Other Expenditure  

$5.3M, or 67.4%, 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

95,625

69,170

(26,455)

(38.2%)

1,105

10001

Office of the CEO

41,862

69,170

27,308

39.5%

7,050

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

10011

Emergency Contingency Costs (Other)

53,764

 -

(53,764)

(100.0%)

(5,945)

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

990,760

899,775

(90,985)

(10.1%)

(55,648)

10000

Members of Council

525,267

589,561

64,294

10.9%

(521)

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

32,942

50,910

17,969

35.3%

3,446

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)

57,221

16,666

(40,555)

(243.3%)

(57,221)

YTD represents partial allocation of the funds for the You Choose Program.  The full year budget of $100K will be allocated in May / June.

10700

Public Relations

85,775

97,851

12,076

12.3%

5,131

The variance is largely attributable to catering for civic events being under budget due to less events being run. 

Community and Commercial Services

1,205,321

6,700,852

5,495,531

82.0%

118,610

10532

BPACC Operations

2,860

37,500

34,640

92.4%

 -

BPACC operational activity will not commence until 2023.

10533

Welfare / Senior Citizens

90,081

65,097

(24,984)

(38.4%)

(22,520)

The 4th instalment of the yearly grant funding agreement for the Senior Citizens was paid in April, rather than in June where it was budgeted.

10543

Community Development

70,234

176,318

106,084

60.2%

27,400

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

641,192

1,053,574

412,382

39.1%

90

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

168,113

140,637

(27,476)

(19.5%)

(41,514)

This is due to MRBTA invoicing for visitor servicing which we pay at the beginning of the quarter as opposed to the end of the quarter.

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

1,921,260

1,919,282

99.9%

191,676

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%

 -

The budget YTD represents the City’s contribution to the AUDC project, which has been deferred.  This was to be 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

99,668

88,620

(11,048)

(12.5%)

3,860

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%)

 -

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

Various

Bushfire Brigades & SES

14,987

1,673

(13,314)

(795.8%)

 -

Reconciliation and re-imbursement of the brigades was not budgeted to occur until June.

Engineering and Works Services

186,555

156,563

(29,992)

(19.2%)

(8,544)

10830

Environmental Management Administration

16,037

937

(15,100)

(1611.5%)

 -

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

B1223

Micro Brewery - Public Ablution

 -

60,000

60,000

100.0%

 -

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

G0042

BTS External Restoration Works

119,383

50,000

(69,383)

(138.8%)

(1,207)

Rendezvous Road Refuse site remedial works.

 

5.      Capital Expenditure  

YTD there is an underspend variance of 59.4%, or $30.7M, in total capital expenditure, with YTD actual at $21M against the YTD budget of $51.7M. 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

41,670

39,071

93.8%

4,167

10610

Property Services Administration

2,599

41,670

39,071

93.8%

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

3,449,212

18,389,600

14,940,388

81.2%

925,171

B9614

Dunsborough Lakes Sporting Precinct-Pavilion /Changeroom Facilities

16,172

891,668

875,496

98.2%

200,267

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

431,771

100,000

(331,771)

(331.8%)

(309,882)

The full year budget of $500K for this project was forecast to be completed by June, however works were completed in February and billing complete in April.  By year end there will be savings to budget of approximately $68K, which will remain in the admin building reserve.

Various

Busselton Performing Arts Convention Centre

2,304,500

15,453,305

13,148,805

85.1%

1,004,166

Construction commenced in February, a lot later than originally forecast.  Unspent budget at June 30 will remain in reserve and restricted assets to be carried over into the following financial year.

B9300/1/2

Aged Housing

Capital Improvements

38,148

182,250

144,102

79.1%

 -

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

89,072

213,852

124,780

58.3%

(1,607)

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)

139,812

164,240

24,428

14.9%

(22,915)

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.

B9608

Demolition Allocation (Various Buildings)

 -

15,000

15,000

100.0%

5,000

Any actual demolition costs are included in the Loss on Disposal calculations of the buildings in question, and will not appear here.

B9610

Old Butter Factory

17,991

6,000

(11,991)

(199.8%)

 -

The YTD overspend is due to 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.

It is likely that this project will need to be re-listed in next financial year’s budget, with the funding remaining in reserve until then as well.

B9612

Churchill Park

Renew Sports Lights

75,767

212,850

137,083

64.4%

(150)

The installation of both the new oval lighting and renewed lighting at the trotting track has commenced. There is a budget amendment pending as the costs will exceed budget. The project is anticipated to be completed by June 30, however lack of consistent contractor availability may cause this project to carry over into the next financial year.

B9613

CCTV Installation

29,921

40,000

10,079

25.2%

10,000

The CCTV installation at the GLC is complete, but we intend to use the remaining funds to upgrade corresponding components in the CCTV infrastructure to improve the overall system and allow for future expansion.

B9615

Naturaliste Community Centre AMP

641

72,000

71,359

99.1%

 -

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

B9616

Buildings Asset Management Plan High Use Allocation

121,249

150,000

28,751

19.2%

1,070

Much of the spend in this area is purely maintenance related and will be re-allocated against the operational budget.  The underspend against budget that will result at year end will be offset by the overspend in operations due to the re-allocation of actual maintenance costs.

B9617

Buildings AMP Renewal Allocation - Meelup Ablution

7,389

200,000

192,611

96.3%

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

16,068

 -

(16,068)

(100.0%)

(327)

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 tender will not be awarded this FY due to staff / resource shortages and the budget allocation will need to be rolled over into next FY. This piece of work will be picked up by the Airport Business Development Officer position, funding endorsed by Council at 11 May Council meeting.

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). The Facilities team are expecting to raise purchase orders and confirm works before the end of this financial year.

Plant & Equipment

884,495

2,810,000

1,925,505

68.5%

543,918

10250

Information & Communication Technology Services

 -

40,000

40,000

100.0%

 -

Vehicle now due to be delivered July.  The budget for this will be carried over in the Plant Reserve and re-listed for expenditure in the 22/23 budget year.

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.  The trailers have in fact been ordered, however delivery is not expected until October.  The budget for this will be carried over in the Cemetery Reserve and re-listed for expenditure in the 22/23 budget year.

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 May.

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 now due in July. The budget for this will be carried over in the Plant Reserve and re-listed for expenditure in the 22/23 budget year.

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 May.

11001

Engineering Services Administration

 -

35,000

35,000

100.0%

 -

Vehicle due in November 2022.  The budget for this will be carried over in the Plant Reserve and re-listed for expenditure in the 22/23 budget year.

11107

Engineering Services Design

69,015

185,000

115,986

62.7%

45,000

Survey equipment worth $73K incorrectly budgeted here, but actual cost has been allocated under Furniture & Office Equipment. 2 x cars delivered.  Survey ute to be ordered in May.

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 should be installed by the end of June.

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

896,000

475,361

53.1%

450,000

Waste truck P166019 to be sent to auction mid May.  Bin cleaning trailer not yet ordered. DWF site ute to be held and not replaced at this time.  New waste truck to be delivered in June.


 

11403

Plant Purchases (P11)

130,486

569,000

438,514

77.1%

25,000

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

 -

50,000

50,000

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

 -

75,000

75,000

100.0%

35,000

Vehicle ordered, delivery now expected in July.  The budget for this will be carried over in the Plant Reserve and re-listed for expenditure in the 22/23 budget year.

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 is an underspend against budget in the contractor line that will offset this spend against a nil budget.

Furniture & Office Equipment

351,197

562,541

211,344

37.6%

(23,514)

10250

Information & Communication Technology Services

176,683

220,891

44,208

20.0%

(13,433)

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 initial tender process 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 closed on 14 April 2022, and received 9 submissions.  These are currently being evaluated with a decision expected in May.

10590

Naturaliste Community Centre

16,326

51,650

35,324

68.4%

 -

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.

10591

Geographe Leisure Centre

11,840

 -

(11,840)

(100.0%)

(11,840)

The entire budget allocation was inadvertently attributed to June, resulting in the overspend timing variances.  The 11.8k was expensed for indoor pool blankets, in time for winter, with remaining budget 18k for replacement of fitness equipment.

11107

Engineering Services Design

73,211

 -

(73,211)

(100.0%)

 -

Cost of new survey equipment that was incorrectly budgeted for under Plant & Equipment, instead of Furniture & Office 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 was no budget for in this particular line, however it was believed at the time of procurement that it would be offset by considerable savings in other areas.

Infrastructure

16,324,772

29,953,087

13,628,315

45.5%

1,148,862

Various

Roads

6,752,938

9,521,677

2,768,739

29.1%

(145,251)

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.

•         48% of the YTD variance valued at $1.323m is associated with the two remaining Regional Road Safety Program projects that are both currently in progress. These works will be completed by June 30.  

•         12% of the YTD variance valued at $340k is associated with the Kaloorup Road Blackspot project with works to come in under budget by est. $400k.

·        The Peel & Queen Street Roundabout Service Relocation works were recently completed in April. This variance will swing into an estimated $380k deficit positon upon receipt of all invoices associated with the project. A budget amendment 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

977

3,921,994

3,921,017

100.0%

1,238,650

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 has now been open to the public. Invoiced for two of these projects have been received and will be will be entered in May.

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 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

1,002,238

1,857,380

855,142

46.0%

(122,521)

39% of the YTD variance valued at $336k is associated with the new car parking for the Dunsborough Lakes Sporting Precinct where works are progressing.

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

•             Dunsborough Chieftain Crescent Carpark Extension $160k 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

692,100

1,633,614

941,514

57.6%

108,080

29% of the year to date variance totalling $275k 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.

11% of the YTD variance valued at $104K 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.

16% of the YTD variance valued at $155K 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

7,472,066

12,520,482

5,048,416

40.3%

164,177

Various

Busselton Jetty - Capital Expenditure

368,642

681,310

312,668

45.9%

3,843

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

64,148

1,156,800

1,092,652

94.5%

16,000

70% of the variance valued at $773k 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 Fourth Street Seawall project that has been put on hold.  This project has now commenced with contractor costs to be incurred in May.

18% of the variance valued at $198k 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

973,427

1,737,500

764,073

44.0%

163,894

Budget for the Busselton Landfill Post-Closure Capping, Rehab & Remediation of $1M are $657k under budget YTD, as works associated with have paused while awaiting DWER’s instruction around remediation options associated with property classifications. Focus for the remaining financial year shifted to earthworks for the construction of Dunsborough Landfill Cell 2 budgeted at $500k. It is anticipated, come June 30, there will be a significant under expended variance to budget associated with several Waste Services projects.

Various

Townscape & Vasse River

55,980

1,261,823

1,205,843

95.6%

236,155

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.

The budget of $640K for major Vasse River works, that commenced in April, will be moved into the operational area via a budget amendment in June, as it is not capital related.

Various

Other P&G Infrastructure

6,009,868

7,683,049

1,673,181

21.8%

(255,715)

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

•         67% of the YTD variance valued at $ 1.116m is associated with the Dunsborough Lakes Sporting Precinct project.

•         The Barnard Park East Foreshore Landscaping project is reported at $532k over expended to the annual budget, this has been highlighted in Councillor briefings.


 

Various

Drainage

311,165

211,200

(99,965)

(47.3%)

(94,273)

The City’s drainage project on Carey street is reported at $95k over budget YTD. The budget for the footpath in the same location is under budget $197k. City Labour costs associated with the footpath may be included in the drainage project; if this is found to be the case the costs will be reallocated.

Various

Regional Airport & Industrial Park Infrastructure

93,288

286,740

193,452

67.5%

 -

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 $776K. 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 April it was forecast that the self-supporting loan to BJINC of $4M for the AUDC project would have been drawn.  This will no longer be proceeding.  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 $91K under budget due to the AUDC loan not proceeding.

 

9.     Total Loan Repayments - Principal

         Repayments of the principal on loans is $330K 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 project and hence the non-draw down of the associated self-supporting loan to BJINC (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 $22.2M because there is usually 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 $20M were received for BPACC that were transferred to restricted assets ($10M of which was budgeted for per a budget amendment for an additional $10M borrowing), until utilized, as well as $8.6M in various government grants, plus $1.7M in Roadwork Bonds, and $1.9M in developer contributions, deposits and bonds.

 

12.   Transfer from Restricted Assets

YTD, there has been $8.1M transferred from Restricted Assets into the Municipal Account. The transfers are usually not possible to predict, and are fully reconciled only at year end.

 

This was attributable to $3.4M of grant money for works completed and reconciled, $713K of Roadwork Bonds, $463K of caravan park deposit refunds, utilization of $1.7M of restricted loan money (BPACC), and $1.8M of various other bonds and deposits.

 

13.   Transfer to Reserves

YTD, there has been $1.8M more transferred to reserves than budgeted due to receiving the Financial Assistance Grants for the 2022/23 year in advance.  This was put aside in the Prepaid Grants Reserve to be utilised next financial year.

 

Investment Report

As at 30th April 2022 the value of the City’s invested funds increased to $107M from $97M as at 31st March 2022.

 

As at 30th April 2022 the 11AM account balance is $23M, up from $13M as at 31st March 2022.

 

The increase of $10M in the investment pool is due to:

·        Addition of $10M loan received for the BPACC project deposited into the 11am account (an intermediary account which offers immediate access to the funds compared to the term deposits, and a higher rate of return compared to the cheque account).

 

During the month of April six term deposits totalling the amount of $18M matured. These were renewed for a further 69 days at 0.91% on average.

 

The official cash rate remains steady for the month of April at 0.10%.

 

Borrowings Update

During the month a further two lots of $5M were drawn from the WATC for the BPACC project, per the budget amendment in March that brought these planned borrowings in earlier than originally forecast in the LTFP, due to increasing interest rates.  Also, $435K of principal and $85K of interest was repaid on existing loans.  The attached Loan Schedule outlines the status of all existing loans as at April YTD.

 

Chief Executive Officer – Corporate Credit Card

There were no transactions made on the Chief Executive Officer’s corporate credit card during April 2022.

 

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 30th April 2022, the City’s net current position stands at $5.2M. The City’s financial performance is considered satisfactory, and cash reserves remain strong.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.

 


Finance Committee

33

8 June 2022

6.2

Attachment a

Loan Schedule - April 2022

 


Finance Committee

45

8 June 2022

6.2

Attachment b

Financial Activity Statement - April 2022

 














Finance Committee

47

8 June 2022

6.2

Attachment c

Investment Report - April 2022

 


Finance Committee                                                             50                                                                        8 June 2022

6.3             BUDGET AMENDMENT REQUEST - LOWER VASSE RIVER SEDIMENT REMOVAL PROJECT

STRATEGIC THEME

ENVIRONMENT - An environment that is valued, conserved and able to be enjoyed by current and future generations.

STRATEGIC PRIORITY

1.3 Work with key partners to improve the health of the Vasse River and other waterways in the Geographe catchment.

SUBJECT INDEX

Water Quality

BUSINESS UNIT

Environmental Services

REPORTING OFFICER

Senior Sustainability/Environment Officer - Mathilde Breton

AUTHORISING OFFICER

Director, Planning and Development Services - Paul Needham

NATURE OF DECISION

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

VOTING REQUIREMENT

Absolute Majority

ATTACHMENTS

Nil

 

OFFICER RECOMMENDATION

That the Council endorse the following budget amendment, transferring the budget for Lower Vasse River Sediment Removal from the capital to operating budgets, to better align the budget with relevant accounting standards -

Cost code description

Account string

Current budgeted expenditure

Amended budgeted expenditure

Impact on budgeted net position

Vasse River – ongoing restoration of river habitat

C3243

$640,000

Nil

$640,000

Sustainability - Contractors

400-10801-3280-0000

Nil

$640,000

($640,000)

Overall

NA

$640,000

$640,000

Nil

 

EXECUTIVE SUMMARY

The Council is asked to support a budget amendment to align with relevant accounting standards, but which has no impact on the budget bottom line.

BACKGROUND

Consistent with the City’s Long Term Financial Plan, funds were allocated in the City’s 2021/22 capital budget towards Lower Vasse River Restoration. A total of $640,000 was allocated, with $290,000 being funded through a transfer from the newly created Waterways Restoration Reserve and the balance of $350,000 funded from a State Government Grant through the Healthy Estuaries Initiative programme.

 

Consistent with feedback received from the Lower Vasse River Management Advisory Group (LVRMAG) and following the obtaining of all environmental approvals, as well as various procurement processes, those funds are being used for the Stage 1 sediment removal project that commenced in April.


 

It is expected that the full budget should be spent by end June, although there may be a need to relist some spend and associated reserve/restricted asset transfers, should portions of the current project not be complete prior to that time.

 

Since adoption of the 2021/22 budget, however, it has been identified that the expenditure should have been budgeted as operating and not capital expenditure. The nature of the works actually being undertaken this financial year, being sediment removal, does not represent capital spend. The ‘land’ that the River occupies is also Unallocated Crown Land (UCL), neither not owned by the City or subject of a management order granted to the City under the Land Administration Act 1997. As such, the expenditure should be identified as operating and not capital, to align with relevant accounting standards – and an amendment to the budget to reflect that is therefore recommended.

 

It should be noted that the purpose of the Waterways Restoration Reserve allows for both operating and capital spend. The Reserve purpose as identified in the 2021/22 budget is; “To provide for any works required to rejuvenate, revive or rectify natural waterways within the Busselton district”. The proposed budget amendment will not affect the City’s overall budget balance, and nor will it have a significant impact on the City’s financial ratios.

 

Whilst further expenditure on sediment removal would also be operating spend, other spend being contemplated, such as the potential development of treatment wetlands, may be classed as capital spend. It is expected that the strategic direction for future investment in waterways restoration will be subject of further consideration by the LVRMAG and the Council later in 2022.

OFFICER COMMENT

It is necessary for the City to ensure that its finances are managed in a manner consistent with relevant accounting standards, including the correct identification of spend as either capital or operating. Whilst, in many senses, including the nature of the work and scale of investment, the sediment removal project is being run and managed in a manner consistent with a capital project, as the Lower Vasse River is not a City asset in an accounting sense, the sediment removal work cannot be identified as capital expenditure.

 

Statutory Environment

The officer recommendation supports the general function of a local government under the Local Government Act 1995 to provide for the good government of persons in its district. As the recommendation provides for an amendment to the budget, an absolute majority resolution of the Council is required.

 

Relevant Plans and Policies

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

 

Financial Implications

There are no financial implications associated with the officer recommendation.

 

Stakeholder Consultation

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

 

Risk Assessment

An assessment of the potential implications of implementing the officer recommendation has been undertaken using the City’s risk management framework, with risks assessed taking into account any controls already in place.

 

No risks of a medium or greater level have been identified.

Options

As an alternative to the proposed recommendation the Council could not amend the budget, and instead reconcile the City’s books with relevant accounting standards as part of 2021/22 year end processes. It is seen as preferable to amend the budget prior to year end.

CONCLUSION

It is recommended that the Council support the recommended budget amendment.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

The recommendation would be implemented immediately following a Council resolution.

 


Finance Committee                                                             52                                                                        8 June 2022

6.4             BUDGET AMENDMENT - EWS VARIOUS PROJECTS

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 - EWS Various Projects

BUSINESS UNIT

Engineering and Works Services

REPORTING OFFICER

Director, Engineering and Works Services - Oliver Darby

AUTHORISING OFFICER

Chief Executive Officer - Mike Archer

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   Email from Main Roads WA - Request Out of Session Approval  

 

OFFICER RECOMMENDATION

That the Council agree to endorse the budget amendments outlined below and depicted in the following table:

1.         Offset $181,000 in coastal damage repair works from the major storm event that occurred in July and August by transferring $126,000 in budget from various postponed projects and drawing down an additional $55,000 from Emergency Disaster Recovery Reserve.

2.         Transfer the $100,000 Capital Sand Re-nourishment budget to Operations and recognise $50,000 in sand re-nourishment grant revenue and corresponding expenditure secured from the Department of Transport.

3.         Transfer $100,000 in budget from C3241 being the Outdoor Spaces (Gen capital allocation for courts, flood lights etc) project representing funding from Reserve 302 - Community Facilities - City District monies and transfer an additional $20,000 in budget from Reserve 225 Parks, Gardens and Reserve to B9612 being the Churchill Park Sports Lighting Renewal Project.

4.         Transfer the remaining budget totalling $156,636 from the Ludlow Hithergreen Road project (S0077) to the Peel Terrace Roundabout project (S0070) where $104,424 of this is Regional Road Group grant funds while the remaining $52,212 is funded from the Road Asset Renewal Reserve; and

5.         Transfer $220,000 from the Major Traffic Improvements Reserve to the Peel Terrace Roundabout project (S0070) to cover additional costs associated with the project.

 

Account string

Existing budget

Adjustment

Adjusted budget

Reserve

1.    Yallingup Costal Damage

541.C7003.3280.0000

Foreshore Protection-Yallingup

$0

$126,000 debit

$126,000

From 225 - Parks, Gardens and Reserves Reserve

541.C7003.3280.0000

Foreshore Protection-Yallingup

$0

$55,000 debit

$181,000

From Emergency Disaster Recovery Reserve


 

545.C1006.3280.0000

$15,000

-$15,000 credit

$0

Remove From 225 - Parks, Gardens and Reserves Reserve

545.C1012.3280.0000

$10,000

-$10,000 credit

$0

Remove From 225 - Parks, Gardens and Reserves Reserve

545.C3007.3280.0000

$25,000

-$25,000 credit

$0

Remove From 225 - Parks, Gardens and Reserves Reserve

545.C3239.3280.0000

$20,000

-$20,000 credit

$0

Remove From 225 - Parks, Gardens and Reserves Reserve

545.C3240.3280.0000

$10,000

-$10,000 credit

$0

Remove From 225 - Parks, Gardens and Reserves Reserve

545.C1752.3280.0000

$40,000

-$40,000 credit

$0

Remove From 225 - Parks, Gardens and Reserves Reserve

545.C3236.3280.0000

$20,750

-$6,000 credit

$14,750

Remove From 225 - Parks, Gardens and Reserves Reserve

Emergency Disaster Recovery Reserve

$135,370

-55,000 credit

$80,370 CB

Emergency Disaster Recovery Reserve

2.    Sand Renourishment

541.C2512.3280.0000

Sand Renouishment Capital

$100,000

-$100,000 credit

$0

102 - Coastal and Climate Adaptation Reserve

541.C7002.3280.2153

Foreshore Protection-Dunsborough

$4,150

$100,000 debit

$104,150

$100k from the Coastal and Climate Adaptation Reserve

541.C7002.3280.0000

Foreshore Protection-Dunsborough

$104,150

$50,000 debit

$154,150

$50k grant corresponding expenditure budget

541.C7002.1239.2153

Operating grant

$0

-$50,000 credit

$50,000

DOT Grant

3.    Churchill Park Sports lighting

545.B9612.3280.0000

Churchill Park Renew Sports Lights

$212,850

$100,000

$312,850

From C3241 Outdoor Spaces (General capital allocation for courts, flood lights etc.) funded from the 302 - Community Facilities - City District

545.C3241.3280.0000

Outdoor Spaces (General capital allocation for courts, flood lights etc.)

$200,000

-$100,000

$100,000

Reduce the budget C3241. The other $100,000 is budgeted grant revenue the City will not receive. 

545.B9612.3280.0000

Churchill Park Renew Sports Lights

$312,850

$20,000

$332,850

From: 225 - Parks, Gardens and Reserves Reserve

4.    Peel Terrace Roundabout

541.S0077.3280.000

Ludlow-Hithergreen Stage 2

$360,000

$-156,424

$205,376

Reduce budget contractors Ludlow job.

541.S0070.3280.0000

Peel & Queen Street Roundabout

$610,500

$156,424

$766,924

Increase budget contractors – Peel job


 

541.S0077.1210.0000

Ludlow-Hithergreen Stage 2

$220,000

$104,424

$135,576

Reduce RRG grant revenue – Ludlow job

541.S0070.1210.0000

Peel & Queen Street Roundabout

$400,000

$104,424

$504,424

Increase RRG grant revenue – Peel Job

541.S0077.3280.000

Ludlow-Hithergreen Stage 2

$766,924

$220,000

$986,924

Increase budget contractors. Funds from 137 -  Major Traffic Improvements Reserve

 

EXECUTIVE SUMMARY

This report seeks Council approval regarding the four budget amendments as listed below;

1.         Yallingup Coastal Damage;

2.         Sand Re-nourishment;

3.         Churchill Park Sports lighting; and

4.         Peel Terrace Roundabout.

 

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 for the following items.

1.         Yallingup Coastal Damage

2.         Sand Re-nourishment

3.         Churchill Park Sports lighting

4.         Peel Terrace Roundabout

OFFICER COMMENT

Yallingup Coastal Damage

A series of storm fronts impacted the City in July and August 2021. Significant damage was sustained to both the beach access way in Yallingup and the beach itself. Due to the extent of the damage the platform lookout, beach showers and parts of the path/stairs needed to be repaired and replaced. “Improvement” works in the form of coastal protection with sand bags and dune stabilisation were also completed to protect the infrastructure from future events.

 

These works incurred unbudgeted contractor costs totalling $181,317.  These costs are recorded against Cost Code C7003 - Foreshore Protection-Yallingup & Smiths Beach.  

 

Since the event various City Officers pursued all avenues regarding a possible insurance claim, however this has been unsuccessful. 

 

A number of capital projects were temporarily postponed pending the outcome regarding the insurance line of enquiry.

 

This amendment will now seek to transfer both; $126,000 in budget allocations associated with other projects put on hold and $55,000 in additional funding from the Emergency Disaster Recovery Reserve to cover the $181,000 in unforeseeable costs incurred. The source of funds is outlined in the Financial Implications section of this report.

 

Sand Re-nourishment

The same storm events as mentioned in item 1 above also did extensive damage to the Dunsborough and Busselton coastline. Significant sand re-nourishment costs to the value of $150,000 have been incurred year to date. The City has an annual $100,000 sand re-nourishment budget classified as capital and the City also secured a $50,000 Sand Re-nourishment Costal Protection Grant from the Department of Transport earlier in the financial year.

 

This amendment will seek to both reassign the $100,000 budget from capital to operating and also bring the $50,000 grant to account.  

 

Based on a combination of Australian Accounting Standards a change in the way the City accounts for sand renourishment needs to be resolved. Through the appropriate accounting standards it has been determined that these costs represent a form of temporary coastal protection in the form of beach maintenance and thus should be recorded as an operational and maintenance costs as opposed to a capital cost.

 

The nature of sand re-nourishment, in the most part, represents the depositing, spreading and shaping of sand on City beaches prone to regular erosion or to form defensive structures to minimise erosion/infrastructure damage. In comparison, building sand-bag groynes represent more permanent and measurable coastal defences that are categorised as assets and thus can be depreciated over their estimated useful lives.

 

In summary, it has been determined that sand re-nourishment represent a form of maintenance to natural assets in the form of beaches that are not recorded on the City’s balance sheet. Based on this, a budget amendment is required to adjust and transfer the City’s capital sand re-nourishment budget to operations where costs have been incurred.

 

Further to the above, the City secured a $50,000 Sand Renourishment Costal Protection Grant from the Department of Transport for this financial year. Given the change in cost categorisation a budget amendment is now required for record keeping purposes. This will subsequently increase the operational sand renourishment budget up to a value of $150,000 representing the amount that has been spent year to date.

 

The Council should be aware that all of the City’s Coastal Protection and sand renourishment budgets have now been fully expended; if there is any costal damage from adverse weather events between now and June 30 there is no budget to accommodate additional costs, unless further funds are utilised from the Emergency Disaster Recovery Reserve.

   

Churchill Park Sports Lighting Project

As part of the City’s asset management plan and Sport and Recreation Strategy, the upgrade of the Churchill Parks sports lighting was identified along with the upgrade and replacement of the trotting track lights to LED lights.

 

The existing budget was set based on price estimates received from suitably qualified suppliers in the 12 months leading up to project implementation. The budget valued at $212,850 (including a Community Sporting and Recreation Facilities Fund (CSRFF) grant of $72,850) was assigned to the project at that point.

Due to supplier issues the material costs subsequently increased significantly by up to 40% while electrical contractor costs also increased with only one contractor submitting a Request for Quotation (RFQ) due to high demand for their services.

 

The combined impact of higher costs has resulted in a price escalation on the project in the order of $130,000. The project was split into materials to be purchased directly by the City and the procurement of electrical contract labour for installation

 

The Financial Implications section of this report offers recommendations on where an additional $130,000 can be sourced to accommodate these higher costs.

 

Peel Terrace Roundabout

The original costing for this project was $610,000 and included some minor design works, service relocations and the construction works (outside of contractor’s works).

 

The road construction component of this project was advertised for tender on 21 August 2021, and tenders closed on 8 September 2021. The Council accepted the tender from BCP Contractors Pty Ltd for RFT 04/21 ROAD NETWORK UPGRADE PEEL TERRACE / CAUSEWAY ROAD INTERSECTION UPGRADE STAGE 1 as being the most advantageous tender at its Council meeting held on 12 October 2022.

 

Further to detailed contract negotiations and a further council report on 24 November 2021 BCP Contractors Pty Ltd was awarded the project formally by means of letter of award on 6 January 2022. Note that the contract award price was in excess of the existing budget at this point.

 

The contractor took possession of site on 15 February 22, and the project was completed on 14 April 2022. The original construction period was 7 weeks, the project was completed in approximately 8 weeks.

 

This project came with a host of challenges, in the most part working in one of the oldest sections of road in the City with data on services not being available as part of the Dial Before You Dig nor from the service pickup completed prior to the works commencing. The contractor encountered a myriad of old asbestos cement pipes, which were all removed as part of the project.

 

A further major constraint was the works traversed two of ATCO Gas’s main lines, being a primary and secondary feed for the area. The logistics of working around these lines was problematic as ATCO Gas could not provide us as-built data on these lines. As a result a full time gas spotter was required on site whilst the contractor carried out work.

 

The ATCO mains (along with other services) created a further issue with the pavement design whereby in order to avoid services (the depth at which could not be identified at the design stage) the pavement depth had to be reduced which required the need to install Tensar Geo Grid mesh. The mesh strengthens the pavement at a reduced thickness and although there are savings from the use of less imported material the grid is at an additional cost.  

 

During construction when the drainage system was exposed, officers had to make the determination to replace additional drainage infrastructure whilst the road was open. The original scope did not require a portion of mainline to be replaced, however on inspection the old infrastructure using butt jointed pipes was considered unsuitable and beyond its useable life. The pipe was re configured to into the new drainage layout and upgraded.

The redesign and renewal reduced the overall additional total stormwater pipes in system and negated the need for upgrading these pipes at a later stage at a higher cost.

 

No landscaping was included in the original scope of works/budget, only new concrete to the centre of the roundabout. This was seen as unsatisfactory for the entrance into Busselton. A detailed Landscape Design was completed similar to the designs completed on Causeway road for the roundabout. In addition only a small portion of the old median island located north of the works, was included in the project, this was also upgraded from an old “pink” concrete median to a landscaped median. Sections of old kerb were also replaced to ensure the entire extent of the works was completely upgraded.

 

A further increase to the scope was the upgrade of the footpaths from grey concrete to exposed aggregate. This was to ensure when the next Stage of the Road Network Upgrade, i.e. Albert Street and Queen Street intersection is completed, that there is continuation of the theme that links the entire Queen Street and the entry on Causeway Road/Peel Terrace.

 

The last item was for additional costs associated with the relocation and upgrade of a Busselton water Main than ran through the roundabout.

 

Further to the above, with Officers understanding the requirement for additional funding on this project, an opportunity was presented regarding a significant saving on another Regional Road Group RRG project (Ludlow Hithergreen Road project - S0077). To this end, $156,424 has already been secured that can be offset against the additional Peel Terrace works. Further details regarding this saving are provided in the Financial Implications section of this report.     

 

No

Description

Amount

Comment

1.

ATCO Gas Main

+$27k

ATCO Gas Spotter, digital Survey data, removal of water main.

2.

“Tensar” Geo grid matting

+$42k

For road stabilisation and protection of high pressure gas main. 

3.

Engineering design and Consultancy costs

+$21K

Also used for design improvements throughout the project/works. 

Extra Drainage; old butt joint storm pipes replaced with modern equivalents

+$69k

It would have made no sense to leave these in place as their failure would mean significant damage to the new road.  

4.

Concrete footpaths to exposed aggregate and increased area from 380m2 to 640m2

+$97k

The area of footpath to be replaced was increased and given the high profile entrance to town the plain concrete was changed to exposed aggregate for improved aesthetic.

Roundabout Landscaping

+$30k

Landscaping and reticulation to the roundabout annulus.

Reinstatement

+$30k

Increased renewal of old reticulation system, turf, adjusting the surrounding verge levels to the raised road height that was lifted for better drainage.

 

5.

Added Median Island and Kerbing on Sweeps

+$29k

Scope changed, landscape to median along Queen Street.

6.

Busselton Water costs in relation to services at site

+$35k

Busselton Water, additional cost for water main relocation.

 

TOTAL

+$380K

 

 

The difference between the $380,000 and the additional $156,000 in Regional Road Group funds secured is $224,000. It is thus proposed that an amount of $220,000 be approved for draw down from the City’s Major Traffic Management Reserve.

This amount includes the already approved  additional $87,826 from the Major Traffic Improvements Reserve (Reserve #137) that was approved as part of the award of RFT 04/21 Peel Terrace/Causeway Road Intersection Upgrade – Stage 1A  project.

 

The Financial Implication sections of this report provides extra details regarding the additional sources of funding being recommended. Note that additional funding ($94,909) is being sought through the Regional Road Group (RRG) underspends to assist with this shortfall. Main Roads Western Australia (MRWA) have supported our request and is now subject to RRG approval, the details of this funding are not included in this report as they have not yet been approved. (See attachment A).

 

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 no relevant plans or policies to consider in relation to these Budget amendments.

 

Financial Implications

Yallingup Coastal Damage

The table below lists Capital projects that were temporarily put on hold pending the outcome regarding access to insurance. The recommendation is now for the Council to approve the transfer of Budget from these projects to offset the Yallingup coastal repair costs; these works to be permanently suspended this Financial Year. It is further recommended that the remaining shortfall totalling $55,317 rounded to $55,000 be funded form the Emergency Disaster Recovery Reserve.

 

Projects to be postponed:

 

Cost Code

Project Title

Amount

Funding Source

C1006

Townscape Street Furniture Replacement – Dunsborough

$15,000

225 - Parks, Gardens and Reserves Reserve

C1012

Townscape Street Furniture Replacement – Busselton

$10,000

225 - Parks, Gardens and Reserves Reserve

C3007

Park Furniture Replacement - Replace aged & unsafe Equip

$25,000

225 - Parks, Gardens and Reserves Reserve

C3239

Foreshore Busselton - High Street to Carey Street

$20,000

225 - Parks, Gardens and Reserves Reserve

C3240

Foreshore Yallingup Capital

$10,000

225 - Parks, Gardens and Reserves Reserve

C1752

Beach Access Improvements

$40,000

225 - Parks, Gardens and Reserves Reserve

C3236

Dunsborough Foreshore Lighting (remaining budget)

$6,000

225 - Parks, Gardens and Reserves Reserve

 

TOTAL PROJECT BUDGET

$126,000

 

 

Total costs of renewal works

$181,317

 

 

Shortfall  - 55,000 From the Emergency Disaster Recovery Reserve

$55,317

 

 

This amendment will have no impact on the City’s net municipal funds.  

 

 

Sand Renourishment

This is a basic amendment seeking to transfer the existing $100,000 capital budget into operations while also recording the additional $50,000 in grant revenue and corresponding $50,000 in expenditure. This will have no impact on the City’s net operating position.  

 

Churchill Park Sports lighting

A budget valued at $212,850 was assigned to the project funded from the three sources listed below;

·        Municipal funds totaling $128,200

·        Community Sporting and Recreation Facilities Fund (CSRFF) Grant totaling $72,850 

·        Parks, Gardens and Reserves Reserve $11,800.

 

City Officers request a budget amendment seeking to transfer;

1.         $100,000 of the Capital project budget C3241 titled - Outdoor Spaces (General capital allocation for courts, flood lights etc.). This budget was assigned in the Long Term Financial Plan as an annual allocation to increase the lighting at existing sporting facilities to increase the availability of the sports grounds, thus is an appropriate fit to be utilised for Churchill Park for the same purpose. The $100,000 is funded via Developer Contributions from the Community Facilities - City District Precinct Reserve.

2.         $20,000 in additional funds to be drawn from the Parks, Gardens and Reserves Reserve.  

 

This amendment will have no impact on the City’s net operating position.

 

Peel Terrace Roundabout

The Peel Terrace Roundabout project will exceed budget by an estimated $380,000. To cover the additional costs it is recommended to both;

1.         Draw $220,000 in funds from the Major Traffic Improvements Reserve. This will reduce the budgeted 30 June 2022 closing balance for this reserve from $997,470 to $777,470.

2.         Transfer $156,636 of the remaining budget form the Stage 2 Ludlow Hithergreen Road project (SZ0077) as detailed below.   

 

A significant saving was achieved on the Ludlow Hithergreen Road project Stage 2 Cost Code S0077.

 

2/3rd representing $104,424 of the saving are Regional Road Group grant funds while the remaining $52,212 is from the Council Road Reserve. Main Roads WA has subsequently approved the transfer of the remaining grant funds to be utilised on the Peel Terrace Roundabout Redevelopment project.

 

This amendment will have no impact on the City’s net municipal end of year position.

 

Stakeholder Consultation

Yallingup Coastal Damage

Consultation undertaken with members of the Yallingup Residence Association in regards to repairs carried out on the beach access way and the beach itself. 

 

Sand Renourishment

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

 

Churchill Park Sports lighting

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

Peel Terrace Roundabout

Formal correspondence and consultation with Main Roads and the Regional Road Group Members regarding the Ludlow Hithergreen Road project (S0077). RRG approved the transfer of these funds to be used to cover additional costs associated with the Peel Terrace project. Further confirmation for additional funding is outstanding.

 

Risk Assessment

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

 

Options

The Council could decide not to proceed with any or all or the proposed budget amendments.

Council could alternatively choose to fund any of these over expenditures from a different source or simply allow the over spends to be offset by the net end of year position.

CONCLUSION

Council’s approval is sought to amend the budget as per the table contained in the Executive Summary.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

If the officer recommendation is endorsed, the budget amendment will be processed prior to
June 30 2022.

 


Finance Committee

61

8 June 2022

6.4

Attachment a

Email from Main Roads WA - Request Out of Session Approval

 


 


Finance Committee                                                             62                                                                        8 June 2022

7.               General Discussion Items

 

8.               Next Meeting Date

                  

9.               Closure