Finance Committee Agenda

 

 

 

3 August 2022

 

 

 

 

 


ALL INFORMATION AVAILABLE IN VARIOUS FORMATS ON REQUEST

city@busselton.wa.gov.au

 

 


CITY OF BUSSELTON

MEETING NOTICE AND AGENDA – 3 August 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, 3 August 2022, commencing at 3.15pm.

 

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.

 

 

 

Mike Archer

 

CHIEF EXECUTIVE OFFICER

 

29 July 2022


CITY OF BUSSELTON

Agenda FOR THE Finance Committee MEETING TO BE HELD ON 3 August 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 20 July 2022. 4

6....... Reports. 5

6.1          FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 30 JUNE 2022. 5

6.2          LIST OF PAYMENTS MADE - JUNE 2022. 46

7....... General Discussion Items. 60

8....... Next Meeting Date. 60

9....... Closure. 60

 


Finance Committee                                                             4                                                                      3 August 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 20 July 2022

Recommendation

That the Minutes of the Finance Committee Meeting held 20 July 2022 be confirmed as a true and correct record.

 


Finance Committee                                                             6                                                                      3 August 2022

6.               Reports

6.1             FINANCIAL ACTIVITY STATEMENTS - YEAR TO DATE AS AT 30 JUNE 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 - June 2022

Attachment b    Financial Activity Statements - June 2022

Attachment c    Investment Report - June 2022  

 

OFFICER RECOMMENDATION

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

The Statement of Financial Activity (FAS) for the year to date (YTD) shows an overall Net Current Position of $507K as opposed to the budget of $98K. This represents a positive variance of $409K 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

 

5.04%

3,979,582

(704,339)

1.    Operating Grants, Subsidies and Contributions

6,166,651

4,891,906

4,891,906

26.06%

1,274,745

(867,097)

2.    Other Revenue

771,797

414,950

414,950

86.00%

356,847

(33,065)

3.    Interest Earnings

754,276

609,250

609,250

23.80%

145,026

56,780

4.    Gain on Sale of Non Current Assets Held for Resale

462,502

0

0

100.00%

462,502

(1,990)

5.    Fair Value Adjustment to Assets

461,893

0

0

100.00%

461,893

(609)

Expenses from Ordinary Activities

8.25%

7,578,731

146,675

6.    Other Expenditure

(4,335,025)

(9,685,100)

(9,685,100)

55.24%

5,350,075

(403,440)

7.    Non-Operating Grants, Subsidies and Contributions

24,387,664

34,959,346

34,959,346

(30.24%)

(10,571,682)

(12,811,397)

Capital Revenue & (Expenditure)

 

7.20%

2,835,890

(20,911,882)

8.    Land & Buildings

(7,078,870)

(22,922,632)

(22,922,632)

69.12%

15,843,762

133,463

Plant & Equipment

(1,126,898)

(2,890,000)

(2,890,000)

61.01%

1,763,102

(118,365)

Furniture & Equipment

(405,559)

(854,368)

(854,368)

52.53%

448,809

216,911

Infrastructure

(22,623,149)

(38,449,114)

(38,449,114)

41.16%

15,825,965

2,269,044

9.    Proceeds from Sale of Assets

257,564

776,071

776,071

(66.81%)

(518,507)

178,337

10.  Proceeds from Sale of Assets Held for Resale

2,500,000

0

0

100.00%

2,500,000

0

11.  Proceeds from New Loans

21,325,000

25,450,000

25,450,000

(16.21%)

(4,125,000)

0

12.  Self Supporting Loans - Repayment of Principal

91,238

267,033

267,033

(65.83%)

(175,795)

(74,663)

13.  Total Loan Repayments – Principal

(3,417,758)

(3,839,418)

(3,839,418)

10.98%

421,660

80,917

14.  Advances to Community Groups

(1,325,000)

(5,450,000)

(5,450,000)

75.69%

4,125,000

0

15.  Transfer to Restricted Assets

(38,082,534)

(10,021,740)

(10,021,740)

(280.00%)

(28,060,794)

(4,694,891)

16.  Transfer from Restricted Assets

21,914,275

1,735,682

1,735,682

1162.57%

20,178,593

6,423,534

17.  Transfer to Reserves

(30,016,913)

(23,109,232)

(23,109,232)

(29.89%)

(6,907,681)

(2,562,887)

18.  Transfer from Reserves

21,918,677

40,401,901

40,401,901

(45.75%)

(18,483,224)

(22,739,767)

 

Revenue from Ordinary Activities

In total, revenue from Ordinary Activities is close to budget, being 6.1% 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 $1.3M, or 26%, 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

3,460,952

1,917,067

1,543,885

80.53%

(442,819)

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

3,139,482

1,544,696

1,594,786

103.24%

(408,500)

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

63,865

31,450

32,415

103.07%

12,996

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

36,679

104,950

(68,271)

(65.05%)

(9,890)

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

23,741

85,788

(62,048)

(72.33%)

(27,398)

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

216,756

543,039

(326,283)

(60.08%)

(157,710)

10542

Club Development – State Government Grants

(402)

30,000

(30,402)

(101.34%)

(7,902)

Activities related to this grant (which has been received), have not occurred, as such, recognition of the grant revenue will be carried over and re-listed in the 22/23 budget, along with the associated expenditure for those activities.

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.  Following the year end reconciliation this income will be carried over into the 22/23 budget as the work is not yet complete (program is over two years).

10630

Economic and Business Development Administration – State Government Grants

2,000

100,000

(98,000)

(98.00%)

(98,000)

The project that this grant was for was undertaken by SWDC themselves, so they applied for the grant in their own right.

B1361

YCAB (Youth Precinct Foreshore) – State Government Grants

30,839

17,500

13,339

76.22%

 -

The $30k is made up of the following donations and grants:

·      Eagle Bay hall association $3,750 (donation);

·      Crime prevention grant from WA Police $8,975;

·      Multiply grants from department of communities: $4,510- Leadership camp, $11k –Youth plan, $2,475- South West youth Festival.

10900

Cultural Planning – Contributions

 -

11,818

(11,818)

(100.00%)

 -

This budgeted item, which as to be funded from the Vasse Village Art Reserve, was not expended as the artwork design and delivery is now happening in the 2022/23 financial year.

11151

Airport Operations – Contributions

 -

100,000

(100,000)

(100.00%)

(50,000)

The $50K RADS grant has been delayed by Dept of Transport. As such, so has the $50K contributions to be received from surrounding participating LG’s.  The project will commence in the new FY including receipt of this funding.

B1361

YCAB (Youth Precinct Foreshore) – Contributions

50,287

40,000

10,287

25.72%

(936)

$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, that were not fully catered for at the time of creating the budget in early 2021.


 

10380

Busselton Library – Parenting Payment Reimbursements

14,827

1,400

13,427

959.10%

(117)

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

Planning and Development Services

1,054,495

1,236,850

(182,355)

(14.74%)

(231,832)

10801

Sustainability – State Government Grants

20,000

 -

20,000

(100.00%)

20,000

This is recognition of part of the Living Streams funding, which was budgeted incorrectly as a capital grant.

10820

Strategic Planning – State Government Grants

 -

37,500

(37,500)

(100.00%)

(18,750)

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 July and, if approved, the final grant payment will be actioned.

10830

Environmental Management Administration – State Government Grants

125,000

 -

125,000

(100.00%)

125,000

This is recognition of the Living Streams funding, which was budgeted incorrectly as a capital grant.  Also, this should have appeared under the new Sustainability section that was set up part through the year after the budget was established.

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.

10931

Protective Burning & Firebreaks-Reserves – State Government Grants

209,409

500,000

(290,591)

(58.12%)

(290,591)

The City approved mitigation activity funding grant was for $500,000, however there was an underspend of $291K due to contractor availability, staff resourcing, and extended fire season.

10940

Fire Prevention DFES – Reimbursements

349,566

370,900

(21,334)

(5.75%)

(30,871)

The budget for 21/22 was set well before it was known what the DFES operational grant was going to be, and before the reconciliation of 20/21 was completed.

Engineering and Works Services

1,434,448

1,194,950

239,498

20.04%

65,264

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.

11101

Engineering Services Administration – State Government Grants

28,230

 -

28,230

(100.00%)

28,230

This is part of the Coastal Monitoring grant received from the Department of Transport that was not budgeted for.


 

C2532

Coastal Adaptation: Mitigation of Coastal Flooding (Drain M) – State Government Grants

22,300

 -

22,300

(100.00%)

22,300

This is part of the Coastal Flooding Mitigation grant received from the Department of Transport that was not budgeted for.

11160

Busselton Jetty – Contributions

727,173

876,600

(149,427)

(17.05%)

 -

Full year contributions are $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

22,450

23,209

103.38%

(7,146)

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

11400

Transport - Fleet Management – Insurance Recoveries

94,472

115,000

(20,528)

(17.85%)

(18,119)

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

309,157

63,650

245,507

385.71%

51,018

Not possible to predict when or how much in workers compensation claims are going to be received.  Budget was set based on prior years trends.

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 $357K, or 86%, 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

46,151

60,350

(14,199)

(23.53%)

(7,575)

10200

Financial Services – Sundry Income

(13,797)

1,800

(15,597)

(866.49%)

(2,075)

The negative amount represents a timing issue between the receipt of a large DAP Fee late in the 20/21 financial year that was not on paid to DAP until July 2021.

Community & Commercial Services

27,214

6,450

20,764

321.93%

13,420

10380

Busselton Library – Sundry Income

7,500

 -

7,500

(100.00%)

 -

This was a grant given to the City to assist with a program run at the library to assist our senior citizens with the operation of the Service WA App.


 

10580

Events & Casual Hire – Sundry Income

14,907

2,150

12,757

593.34%

12,529

This amount represents contributions returned to the City for events either that did not occur, or for which the amount contributed exceeded what was required.

Planning & Development Services

99,440

140,600

(41,160)

(29.27%)

(25,774)

10950, 10960, 10970

Animal, Litter & Parking Control – Fines & Prosecutions

51,815

76,450

(24,635)

(32.22%)

(2,571)

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

Engineering & Works Services

598,992

207,550

391,442

188.60%

(13,136)

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

47,102

34,000

13,102

38.54%

2,215

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

497,943

173,400

324,543

187.16%

(37,146)

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 $145K, or 23.8%, due to an increase in interest rates being offered on investments over the last half of the financial year.

 

4.      Gain on Sale of Non Current Assets Held for Resale

This line represents the gain on sale of land that was reclassified in the previous financial year as being held for resale.  The amount of $464K is the difference between the value we had the land recorded at in the books and what we actually received.

 

The land in question is the Ambergate land, which the auditors determined should be reclassified from Non Current Assets to Held for Resale, due to the published intention of Council to sell prior to year end.

 

5.      Fair Value Adjustments to Assets

This line represents re-recognition of capital work in progress costs for the geothermal works at the GLC that dues to a system error were incorrectly written off as P&A assets due to the individual cost amounts being under $5K.

 

As part of the 5 year asset revaluation process, whilst examining the costs associated with the GLC building, this discrepancy was uncovered, and the $462K revenue item is effectively the reversal of the previous incorrect expense write-off.

 


Expenses from Ordinary Activities

Expenditure from ordinary activities is $7.6M, or 8.25%, 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.

 

6.      Other Expenditure  

$5.4M, or 55.2%, 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

103,871

83,000

(20,871)

(25.1%)

4,983

10001

Office of the CEO

46,217

83,000

36,783

44.3%

4,983

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

10011

Emergency Contingency Costs (Other)

57,655

 -

(57,655)

(100.0%)

 -

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

1,774,956

1,560,876

(214,080)

(13.7%)

(350,295)

10000

Members of Council

668,381

682,131

13,750

2.0%

(39,574)

Timing related variances with underspends primarily in reimbursements and training expenses due to change of council members.

10151

Rates Administration

429,064

390,000

(39,064)

(10.0%)

(390,924)

The budget is for rating valuations in relation to the interim rating of new properties, as well as the annual UV Rural and 3 yearly GRV Revaluation by LVS.  The actual bill from LVS for the GRV revaluations was a lot higher than expected in June.

10200

Financial Services

47,829

 -

(47,829)

(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

332,267

206,140

(126,127)

(61.2%)

(32,155)

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.

10370

Busselton Cemetery

71,710

400

(71,310)

(17827.4%)

(1)

Additional neighbouring land purchased by CoB in September 2019, then transferred to the State Government as Crown Reserve for the cemetery expansion, was incorrectly allocated as a capital expenditure.  This was picked up as part of the 5 yearly asset revaluation cycle and has now been reallocated correctly as a contribution.


 

10511

Community Assistance Program (Governance)

76,304

100,000

23,696

23.7%

83,334

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

99,547

127,350

27,803

21.8%

18,685

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

Community and Commercial Services

2,111,988

7,538,909

5,426,921

72.0%

(252,743)

10532

BPACC Operations

5,015

50,000

44,985

90.0%

10,345

BPACC operational activity will not commence until late 2023.

10543

Community Development

120,059

225,900

105,841

46.9%

(176)

The variance to budget relates to the grants that we have approved/allocated, but haven’t yet received an invoice for from the applicants.  Some are pending confirmation of other funding before they can invoice us (or before we’ll pay out) and some are waiting for acquittal (projects to be completed).

10558

Events

856,169

1,297,200

441,031

34.0%

40,522

The YTD underspend to budget can be explained as follows:

·        $165k was unspent for events sponsorships, either due to cancelled events or less events applying for sponsorship due to ongoing COVID issues

·        $13k was unspent due to milestones not yet having been met for 3 sponsored events (carried to 2022/23, pending receipt of post event reports)

·        $10k was unspent for the review of the Events Strategy, pending completion 2022/23

·        $17k remained unspent for City led events, again due to COVID cancellations

·        $112k was unspent in the marketing budget due to no further identified initiatives

·        $110K for Winter Wonderland, and approximately $14K in general unallocated funds.

10630

Economic and Business Development Administration

168,137

190,400

22,263

11.7%

49,763

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

10,000

23,850

13,850

58.1%

(10,000)

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 was required.  This positive variance at the end of the year is offset by a lower transfer from the reserve.

11151

Airport Operations

618,438

2,358,200

1,739,762

73.8%

(371,189)

Marketing activities were delayed during the year 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 remains 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 practical completion on the works has not eventuated, and there are still some outstanding works in progress.

Planning and Development Services

112,766

125,154

12,388

9.9%

17,142

10805

Planning Administration

 -

30,000

30,000

100.0%

15,000

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, this budget was not spent.


 

10931

Protective Burning & Firebreaks-Reserves

2,387

17,850

15,463

86.6%

2,019

The budget here was for reimbursement of the brigades for any catering etc costs during mitigation works.  As nothing was done, no costs were incurred.

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.

Engineering and Works Services

231,210

377,161

145,951

38.7%

177,473

10830

Environmental Management Administration

41,037

19,211

(21,826)

(113.6%)

(6,726)

There is overspend to budget this area due to receiving a grant from the Department of Primary Industries of $25K, as part of the State Natural Resource Management program, that was not known about at the time of setting the 21/22 budget.  This grant was then on-paid to Geo Catch to perform the project work on behalf of the City.

B1205

Centennial Park-Toilets

91

200,100

200,009

100.0%

200,000

The contribution by the City to the ablution block at Centennial Park, as part of the proposed foreshore café initiative, did not go ahead in the 21/22 year.  Discussion and planning is still ongoing as to whether this will proceed in the 22/23 year, so at this stage will not be re-listed in the 22/23 budget, but may be brought via a budget amendment at a later stage.

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

135,702

50,000

(85,702)

(171.4%)

(16,319)

Rendezvous Road Refuse site remedial works.

 

7.     Non-Operating Grants, Subsidies & Contributions  

The negative variance of $10.6M 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. 

Revenue Code

Revenue Code Description

Actual YTD

$

Amended Budget YTD

$

Variance
YTD
$

Variance
YTD
%

Change in Variance Current Month

$

Finance and Corporate Services

178,370

65,000

113,370

174.4%

 -

10250

Information & Communication Technology Services – Prepaid Grant Funds Utilised

117,370

 -

117,370

100.0%

 -

Community and Commercial Services

17,426

424,708

(407,282)

(95.9%)

(229,181)

10540

Recreation Administration

 -

102,500

(102,500)

(100.0%)

(25,625)

10542

Club Development

 -

11,550

(11,550)

(100.0%)

(11,550)

10590

Naturaliste Community Centre

 -

93,400

(93,400)

(100.0%)

(23,350)

10900

Cultural Planning – Prepaid Grant Funds Utilised

 -

13,750

(13,750)

(100.0%)

 -

B1361

YCAB (Youth Precinct Foreshore)

 -

11,125

(11,125)

(100.0%)

(11,125)

B9717

Airport Construction, Existing Terminal Upgrade

 -

46,485

(46,485)

(100.0%)

(46,485)

C6087

Airport Construction Stage 2, Landside Civils & Services Inf

 -

27,372

(27,372)

(100.0%)

(27,372)

C6099

Airport Development - Project Expenses

 -

101,100

(101,100)

(100.0%)

(101,100)

Planning and Development Services

1,690,566

886,000

804,566

90.8%

366,604

10801

Sustainability

330,000

370,000

(40,000)

(10.8%)

(60,000)

B1015

Hithergreen District Bushfire Brigade (donated assets)

463,413

 -

463,413

100.0%

463,413

B1024

Wilyabrup Bushfire Brigade (donated assets)

235,977

 -

235,977

100.0%

 -

B1029

Busselton Branch SES (donated assets)

181,984

 -

181,984

100.0%

 -

C3223

Dunsborough Non-Potable Water Network

479,191

516,000

(36,809)

(7.1%)

(36,809)

Engineering and Works Services

22,501,302

33,583,638

(11,082,336)

(33.0%)

(12,948,821)

A0001

Kaloorup Road Bridge 3380 – Main Roads Grant

 -

39,000

(39,000)

(100.0%)

 -

A0006

Roy Road - Bridge Construction - Bridge 3373A – Main Roads Grant

 -

87,000

(87,000)

(100.0%)

(87,000)

A0008

Layman Road Bridge - 3438 – Main Roads Grant

 -

234,000

(234,000)

(100.0%)

(234,000)

A0022

Yallingup Beach Road Bridge - 3347 – Federal Capital Grant

 -

700,000

(700,000)

(100.0%)

 -

A0023

Kaloorup Road Bridge – 3381 – Federal Capital Grant

 -

936,000

(936,000)

(100.0%)

(273,000)

A0024

Boallia Road Bridge – 4854 – Federal Capital Grant

 -

575,000

(575,000)

(100.0%)

(143,750)

A0025

Tuart Drive Bridge 0238 – Developer Cont. Utilised

510,989

3,010,989

(2,500,001)

(83.0%)

(1,008,241)

A0026

Gale Road Bridge 3408A – Main Roads Grant

 -

90,000

(90,000)

(100.0%)

(90,000)

A0200

Donated Bridges

3,929,239

 -

3,929,239

100.0%

 -

B9591

Performing Arts Convention Centre – Federal Capital Grant

 -

7,551,000

(7,551,000)

(100.0%)

(1,858,500)

B9612

Churchill Park Renew Sports Lights –

State Capital Grant

36,429

72,850

(36,422)

(50.0%)

36,429


 

B9614

Dunsborough Lakes Sporting Precinct-Pavilion/Changeroom Fac. - Developer Cont. Utilised

16,172

1,300,000

(1,283,828)

(98.8%)

(1,300,000)

B9621

Bovell Construction of Changerooms –

State Capital Grant

 -

90,000

(90,000)

(100.0%)

(90,000)

B9622

Dunsborough Youth Centre Building Construction –

State Capital Grant

 -

80,000

(80,000)

(100.0%)

(80,000)

B9999

Donated Buildings

30,000

 -

30,000

100.0%

 -

C0050

Forth Street Groyne Carpark - Formalise and Seal - Developer Cont. Utilised

 -

11,350

(11,350)

(100.0%)

(11,350)

C0064

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

532,369

800,000

(267,631)

(33.5%)

(800,000)

C1511

RBFS Various Grant Applications - Developer Cont. Utilised

 -

15,900

(15,900)

(100.0%)

(15,900)

C1753

Eagle Bay Viewing Platform - Developer Cont. Utilised

82,743

95,450

(12,707)

(13.3%)

(12,707)

C3116

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

116,742

154,200

(37,458)

(24.3%)

(108,575)

C3214

Kingsford Road - POS Upgrade – Developer Cont. Utilised

143,263

181,450

(38,187)

(21.0%)

(109,624)

C3215

Monash Way - POS Upgrade – Developer Cont. Utilised

148,138

161,850

(13,712)

(8.5%)

(85,651)

C3216

Wagon Road - POS Upgrade – Developer Cont. Utilised

190,721

161,650

29,071

18.0%

(52,269)

C3217

Limestone Quarry - POS Upgrade – Developer Cont. Utilised

140,457

161,650

(21,193)

(13.1%)

(140,880)

C3218

Dolphin Road - POS Upgrade – Developer Cont. Utilised

142,758

86,100

56,658

65.8%

(33,976)

C3219

Kingfish/ Costello - POS Upgrade – Developer Cont. Utilised

38,628

86,300

(47,672)

(55.2%)

(81,223)

C3225

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

1,196,504

1,338,000

(141,496)

(10.6%)

(1,192,502)

C3238

Vasse River - General Upgrade – Developer Cont. Utilised

 -

28,500

(28,500)

(100.0%)

(28,500)

C3241

Outdoor Spaces (Gen cap alloc for courts, flood lights etc.) – State Capital Grant

 -

100,000

(100,000)

(100.0%)

(100,000)

C3244

Dunsborough Lakes Sporting Precinct - Outdoor Courts – Developer Cont. Utilised

397,091

650,000

(252,909)

(38.9%)

(371,412)

C3246

Bovell - Connection of Services – State Capital Grant

 -

210,000

(210,000)

(100.0%)

(210,000)

D0009

Busselton LIA - Geocatch Drain Partnership WSUD Improvements – Developer Cont. Utilised

 -

30,000

(30,000)

(100.0%)

(30,000)

D2000

Donated Assets Drainage

2,470,181

1,200,000

1,270,181

105.8%

(714,234)

F0084

Thompson Way - New Path – Contributions

36,818

 -

36,818

100.0%

 -

F0112

Causeway Road Shared Path – State Capital Grant

 -

98,500

(98,500)

(100.0%)

 -

F1003

Donated Assets Footpaths & Cycleways

958,983

400,000

558,983

139.7%

(40,760)

F1022

Buayanyup Drain Shared Path – Developer Cont. Utilised

183,251

200,800

(17,549)

(8.7%)

(200,800)

S0048

Bussell Highway – Developer Cont. Utilised

450,920

837,600

(386,680)

(46.2%)

(124,364)

S0076

Kaloorup Road (Stage 1) – Main Roads Direct Grant

346,029

653,050

(307,021)

(47.0%)

141,779

S0078

Sugarloaf Road –

State Capital Grant

302,993

804,000

(501,007)

(62.3%)

 -

S0321

Yoongarillup Road - Second Coat Seal –

MR Capital Grant

52,459

100,000

(47,541)

(47.5%)

52,459

S0331

Barracks Drive Spray Seal – MR Capital Grant

67,256

130,980

(63,724)

(48.7%)

67,256

S0332

Inlet Drive Spray Seal –

MR Capital Grant

16,274

47,000

(30,726)

(65.4%)

16,274

S0333

Chapman Crescent Spray Seal – MR Capital Grant

26,583

78,000

(51,417)

(65.9%)

26,583

S0334

Chapman Hill Road – MR Capital Grant

1,114,346

1,496,000

(381,654)

(25.5%)

502,727

S0335

Kaloorup Road – MR Capital Grant

420,400

481,900

(61,500)

(12.8%)

299,925

S0336

Wildwood Road – MR Capital Grant

1,801,423

1,875,500

(74,077)

(3.9%)

(468,875)

W0030

Donated Roads

2,747,979

2,500,000

247,979

9.9%

(3,626,801)

W0274

Rendezvous Road Spray Seals – Developer Cont. Utilised

262,661

47,916

214,745

448.2%

166,829

 

8.      Capital Expenditure  

YTD there is an underspend variance of 52%, or $33.9M, in total capital expenditure, with YTD actual at $31.2M against the YTD budget of $65M. 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

 -

50,000

50,000

100.0%

6,762

10610

Property Services Administration

 -

50,000

50,000

100.0%

6,762

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

7,078,870

22,872,632

15,793,762

69.1%

126,701

B9614

Dunsborough Lakes Sporting Precinct-Pavilion /Changeroom Facilities

15,225

1,300,000

1,284,775

98.8%

205,112

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

432,531

500,000

67,469

13.5%

400,000

There was a savings to budget on this project of approximately $68K, which will remain in the admin building reserve.

Various

Busselton Performing Arts Convention Centre

5,682,964

18,550,297

12,867,333

69.4%

(974,110)

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.

B9200

Mosquito Control Storage Shed

1,210

95,000

93,790

98.7%

95,000

Apart from some initial planning design, this project did not commence.  Funds will remain in reserve, with the project to be carried over and relisted in combination with the Hanger Upgrade Project at the airport (where the Mozzie Control Shed was to be located).

B9300/1/2

Aged Housing

Capital Improvements

58,018

235,800

177,782

75.4%

46,567

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. 

Refurbishment of two units have been completed, with a carry over of approximately $49K of the underspend into next FY relating to carport works.


 

B9596

GLC Building Improvements

95,846

285,150

189,304

66.4%

66,497

Stage 1 storage (internal store rooms) improvements have been completed, along with upgrades to electrical and mechanical switchboards.  Projects to be completed FY 22-23 (carried over and re-listed), include Stage 2 of the storage improvements (approx. 20m x 6m shed to rear of stadium), improvement to stadium ventilation, upgrade works to the café, and reinstatement of ceilings to reception. 

B9605

Energy Efficiency Initiatives (Various Buildings

161,818

187,100

25,282

13.5%

16,354

Due to contractor availability it was not possible to expend this budget in its entirety.  Unspent funds have been carried over and remain in reserve.

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

1,755

250,000

248,245

99.3%

(1,755)

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

144,597

332,850

188,253

56.6%

119,520

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 was anticipated to be completed by June 30, however lack of consistent contractor availability has caused this project to be carried over into the next financial year.

B9613

CCTV Installation

29,921

50,000

20,079

40.2%

 -

The CCTV installation at the GLC is complete, with the intention of using the remaining funds to upgrade corresponding components in the CCTV infrastructure to improve the overall system and allow for future expansion.  This however, did not occur by year end, but may happen some time in the 22/23 year, funded from the annual municipal allocation for this area.

B9615

Naturaliste Community Centre AMP

(495)

72,000

72,495

100.7%

 -

These works for the new storage facilities were delayed due to contractor availability.  They may be re listed into next financial year at a later date.

B9616

Buildings Asset Management Plan High Use Allocation

61,236

150,000

88,764

59.2%

65,479

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

B9617

Buildings AMP Renewal Allocation - Meelup Ablution

70,297

200,000

129,703

64.9%

(37,591)

This project was delivered significantly under budget.


 

B9621

Bovell Construction of Changerooms

17,606

90,000

72,394

80.4%

90,000

Costs represent deposits for the initial design, supply and installation of ablutions.  The incomplete portion of this fully grant funded project has been re-listed for completion in the 22/23 budget.

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

50,000

45,686

91.4%

25,000

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

1,126,898

2,890,000

1,763,102

61.0%

(118,365)

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

2,727

20,000

17,273

86.4%

 -

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.

10630

Economic and Business Development Administration

 -

75,000

75,000

100.0%

 -

The budget relates to the replacement of two vehicles. Due to supply chain issues, these purchases have been carried over and re-listed in the 22/23 budget.

10920

Environmental Health Services Administration

 -

40,000

40,000

100.0%

 -

Vehicle will be ordered when new officer appointed.  This will be carried over and relisted in the 22/23 budget.

10950

Animal Control

 -

50,000

50,000

100.0%

 -

Ute for rangers was ordered in May and was delivered in June, however supplier invoicing was not forthcoming by year end cut-off and the cost was not accrued into the 21/22 financial year.  Funds will remain in the Plant Reserve, and be used to pay for the vehicle in July.

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%

 -

Survey equipment worth $73K incorrectly budgeted here, but actual cost has been allocated under Furniture & Office Equipment. 2 x cars delivered.  A new survey ute was ordered in May, but is not expected to be delivered and paid for until October, so the budgeted for this will be carried over and relisted in the 22/23 budget.


 

11151

Airport Operations

 -

15,000

15,000

100.0%

 -

Slasher (tractor mounted) not yet ordered.  The requirements have been re-assessed, with a new specification solution re-budgeted in 22/23.

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, with the replacement being deferred and no plan to re-list in 22/23.

11402

Plant Purchases (P10)

420,639

896,000

475,361

53.1%

 -

Bin cleaning trailer not yet ordered and will be carried over and re-listed in the 22/23 budget.  DWF site ute to be held and not replaced at this time.  New waste truck to be delivered in July, with budget carried over and re-listed.

11403

Plant Purchases (P11)

141,086

579,000

437,914

75.6%

(600)

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.  Budgets for all of these will be carried over and re-listed.

11404

Plant Purchases (P12)

88,453

515,000

426,547

82.8%

 -

Specification development for 2 x light trucks and the associated RFQ for a new grader is still in progress.  Budgets for all of these will be carried over and re-listed.

11407

P&E - P&G Smart Technologies

88,141

100,000

11,859

11.9%

(63,141)

$35k was used for smart technologies incorporated into select public BBQ’s located in the more remote areas of the City. $28k was used to replace the foreshore wind turbines with an alternate solar option and $25k was outlaid to upgrade 3G to 4G irrigation technologies.  Unspent funds will remain in reserve.

11500

Operations Services Administration

39,931

75,000

35,069

46.8%

 -

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)

30,083

 -

(30,083)

(100.0%)

(10,737)

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

405,559

854,368

448,809

52.5%

216,911

10250

Information & Communication Technology Services

221,955

441,800

219,845

49.8%

186,411

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.  Unspent budget will remain in reserve, to be carried over and re-listed in the 22/23 budget.

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.  A preferred tenderer has been identified, approvals and final costings are currently being sought before the tender is awarded. This has been identified as a carryover into 2022/23, with the tender expected to be awarded in July 2022.

10590

Naturaliste Community Centre

26,654

60,000

33,346

55.6%

(1,978)

Overall underspend is as a result of unsuccessful CCCF capital grant application 50/50 contribution of $33.4k.

10591

Geographe Leisure Centre

11,840

30,000

18,160

60.5%

30,000

The $11.8K was expensed for indoor pool blankets, in time for winter, with remaining budget $18K for replacement of fitness equipment to be carried over and re-listed in the 22/23 budget.

10900

Cultural Planning

11,722

50,968

39,246

77.0%

2,477

The underspent budget in this area is due to the carryover of the Sculpture by the Bay acquisitive art award, due to the cancellation of the event this year, as well as the latest Vasse Village artwork which is in design and will be installed next financial year. The Vasse Village artwork is funded from the public art reserve and contributions from the developer and business owners.

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.  There is an offsetting underspend in that area.

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

19,844

 -

(19,844)

(100.0%)

 -

Expenditure was for 8 sit-to-stand workstations at the depot administration building.  There was no budget for this particular line, however it was believed at the time of procurement that it would be offset by considerable savings in other areas (note the $449K savings against budget for total Furniture & Equipment).

Infrastructure

22,623,149

38,449,114

15,825,965

41.2%

2,269,044

Various

Roads

9,462,386

12,746,794

3,284,408

25.8%

570,328

Impacting this variance are the outcomes 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; some projects that were put on hold given the heated state of the economy impacting on the availability of contractors and overall increased costs.

·          44% of the variance values at $1.522m is attributable to both Bussell Highway and Sugarloaf Road Regional Road Group projects that are being carried forward;

·          13% values at $455k is attributable to the final works on the Road Safety Program projects on Wildwood and Chapman Hill road.

Various

Bridges

1,258,487

6,849,989

5,591,502

81.6%

1,687,372

Major bridge works are completed by Main Roads.

At June 30 works had been completed on the Bussell Highway bridge #241, Yallingup Beach Road bridge #3347 and the Tuart Drive bridge #0238.

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

Various

Car Parks

1,185,864

1,960,600

774,736

39.5%

(50,639)

$183k of the Dunsborough Lakes Sporting Precinct car parking budget totalling $800k where unexpended, this project is still in progress.

The following two projects were not completed in the year and thus represent under expenditures as at June 30:

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

•             Hotel Site 2 Carpark $230k.


 

Various

Footpaths & Cycleways

996,171

1,944,200

948,029

48.8%

12,296

Only $74k of the $500k budget for the stage 2 Busselton CBD Footpath Renewal project was outlaid in the year; the project was temporarily put on-hold pending further review as a potential re list.

$194K of the variance is associated with the Causeway Road Shared Path project where tendered prices came in higher than anticipated and thus the project will be relisted at a greater amount in 2022/23. Both the Arnup Drive Footpath project $70k) and the Dunsborough Centennial Park Project ($99k) did not proceed and have been re-budgeted into the 2022/23 financial year.

Parks, Gardens & Reserves

9,277,590

14,270,842

4,993,252

35.0%

(76,157)

Various

Busselton Jetty - Capital Expenditure

99,930

817,550

717,620

87.8%

513,949

A significant amount of the costs incurred in the year were maintenance in nature and not capital and as such those costs were reassigned to Operations as the costs cannot be capitalised. This has created this large capital variance.           

Various

Coastal & Boating

673,160

1,116,800

443,640

39.7%

(533,310)

$224k of the variance 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 represents a carry over.

$155k of the variance is associated with a Coastal Adaptation project re the Mitigation of Coastal Flooding. Planning for this project has been completed with works to be carried out in the 2022/23 financial year.

Various

Waste Services

1,020,616

2,292,500

1,271,884

55.5%

482,520

The Busselton Landfill Post-Closure Capping, Rehab & Remediation works budgeted at $1M did not commence as works were paused while awaiting DWER’s instruction around remediation options associated with property classifications. Focus for the financial year thus shifted to stage 1 earthworks for the construction of Dunsborough Landfill Cell 2.

Various

Townscape & Vasse River

67,577

1,114,067

1,046,490

93.9%

(393,182)

No townscape works of any significance associated with projects in this category were commenced, however planning is well advanced.

The townscape works in Dunsborough valued at $1.057m will be carried over and re-listed in the 22/23 financial year budget.

Various

Other P&G Infrastructure

7,416,307

8,929,925

1,513,618

16.9%

(146,134)

There were 45 individual Parks & Gardens capital projects budgeted in the financial year ranging in value from between a mere $1.8K to $2.1M.  $703k of the year end variance was associated with the Dunsborough Lakes Sporting Precinct project that is well under way and will now extend in to the 2022/23 financial year.

Various

Drainage

343,693

311,605

(32,088)

(10.3%)

46,565

The City’s drainage project on Carey street finished up $39k over budget this was offset by the Carey Street footpath coming in $50k under budget.

Various

Regional Airport & Industrial Park Infrastructure

98,958

365,084

266,126

72.9%

79,279

YTD actual is made up of four separate account strings all part of the Airport development project. Some are completed (underspent) and others will be carried over for completion in the next financial year.

 

9.      Proceeds From Sale of Assets  

YTD there has only been $258K worth of 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. 

 

10.   Proceeds from From Sale of Assets Held for Resale

The amount of $2.5M represents the sale of the Ambergate Land which was not included in the original budget.  It is classified separate to the Proceeds From Sale of Assets above due to its re-classification as being “Held for Resale” by the auditors at the end of last financial year.

 

11.   Proceeds from New Loans

YTD 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 items 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.

 

12.   Self Supporting Loans – Repayments of Principal

         This line is $178K under budget mainly due to the AUDC loan not proceeding, but is offset by part of the positive variance in Total Loan Repayments, where the City is not required to repay those budgeted amounts associated with the un-drawn self-supporting loans.

 

13.  Total Loan Repayments - Principal

        Repayments of the principal on loans is $422K under budget YTD, mainly due to the loan for the BPACC not proceeding in the timeframe as budgeted, as well as the cancellation of the AUDC project and hence the non-draw down of the associated self-supporting loan to BJINC (offset per above).

 

14.   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 cancelled.

 

15.   Transfer to Restricted Assets  

There is a YTD variance in transfers to Restricted Assets of $28.1M 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 $14M in various government grants, plus $1.8M in Roadwork Bonds, and $2.2M in various developer contributions, deposits and bonds.

 

16.   Transfer from Restricted Assets

YTD, there has been $21.9M 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 $12.3M of grant money for works completed and reconciled, $1.1M of Roadwork Bonds, $484K of caravan park deposit refunds, utilization of $5.7M of restricted loan money (BPACC), and $2.3M of various other bonds and deposits returned or utilised.

17.   Transfer to Reserves

YTD, there has been $6.9M more transferred to reserves than budgeted due to:

·        Receiving the $2M of 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;

·        The $2.5M proceeds from sale of the Ambergate land was also set aside in the Strategic Projects Reserve, which was not forecast in the original budget;

·        $100K more interest than expected due to increasing rates;

·        $661K more to the Airport Reserve due to a much higher than expected net profit position;

·        $413K more to the Jetty Reserve due to a much higher than expected net profit position;

·        $71K more to the Aged Housing Reserves due to a much higher than expected net profit positions;

·        $465K more to the Long Service Leave Reserve;

·        Approximately $84K less received in various developer contributions than budgeted, transferred to the various precinct reserves;

·        $59K less transferred to the plant reserve due to deferral of the trade in of vehicles as expected due to supply chain issues for the replacements;

·        $97K more to the Cemetery Reserve;

·        $770K more to the Waste Reserve due a high net surplus position against budget.

 

18.   Transfer from Reserves

YTD, there has been $18.5M less transferred from reserves than budgeted YTD.  This is due to significantly less reserve funded jobs being completed than was originally forecast.

 

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 30th June 2022 the value of the City’s invested funds decreased from $104.5M as at 31st May 2022 to $95.5M.

 

As at 30th June 2022 the 11AM (an intermediary account which offers immediate access to the funds compared to the term deposits) account balance is $11.5M, down from $20.5 M as at 31st May 2022.

 

The decrease of $9.0M in 11am account is due to:

·        Deduction of $9M from the 11am account, with the funds being transferred to the cheque account to meet normal operating expenses.

 

During the month of June 2022 seven term deposits totalling the amount of $20.5M matured. These were renewed for a further 186 days at 2.5% on average.

 

The official cash rate increased during the month of June by 0.5% from 0.35% to 0.85%. Further increases are expected in the coming months further increasing the cash rate. This will result in higher interest earnings for the City, although future borrowings will incur higher rates also.

 


Borrowings Update

During the month no new loans were drawn, with $698K principal and $269K in interest repaid on existing loans.  The attached Loan Schedule outlines the status of all existing loans YTD.

 

Chief Executive Officer – Corporate Credit Card

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

 

Date

Payee

Description

$ Amount

23/06/22

Telstra

Monthly Telstra Home Internet –

M. Archer

$95.00

 

 

TOTAL

$95.00

 

 Donations & Contributions Received

During the month no non-infrastructure asset (bridges, roads, POS etc), 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 June 2022, the City’s net current position stands at $507K. The City’s financial performance is considered satisfactory, and cash reserves remain strong.

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.

 


Finance Committee

28

3 August 2022

6.1

Attachment a

Loan Schedule - June 2022

 


Finance Committee

32

3 August 2022

6.1

Attachment b

Financial Activity Statements - June 2022

 

















Finance Committee

45

3 August 2022

6.1

Attachment c

Investment Report - June 2022

 


Finance Committee                                                             47                                                                    3 August 2022

6.2             LIST OF PAYMENTS MADE - JUNE 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 - June 2022  

 

OFFICER RECOMMENDATION

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

CHEQUE PAYMENTS

119267 - 119306

                  62,263.28

ELECTRONIC FUNDS TRANSFER PAYMENTS

87653 - 88214 and 88218 - 88693 

          14,230,978.51

TRUST ACCOUNT PAYMENTS

 EFT 88215 -88217

               107,060.78

PAYROLL PAYMENTS

 01.06.2022 - 30.06.2022

            1,597,481.94

INTERNAL PAYMENT VOUCHERS

 DD 4894 - 4927

               151,343.90

TOTAL PAYMENTS

 

          16,149,128.41

 

EXECUTIVE SUMMARY

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

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

Not applicable.


Finance Committee

59

3 August 2022

6.2

Attachment a

List of Payments - June 2022

 












 


Finance Committee                                                             60                                                                    3 August 2022

7.               General Discussion Items

 

8.               Next Meeting Date

 

9.               Closure