Agenda of Finance Committee - Wednesday, 3 August 2022

Finance Committee 6 3 August 2022

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.

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.

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.

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

As at 30^th 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 31^st 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.

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.

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.

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.

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.

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.

Date		Payee	Description	$ Amount
23/06/22	Telstra		Monthly Telstra Home Internet – M. Archer		$95.00
			TOTAL		$95.00

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