city of busselton minutes for the finance committee ... · finance committee 3 4 june 2015 5....

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

CITY OF BUSSELTON

MINUTES FOR THE FINANCE COMMITTEE MEETING HELD ON 4 JUNE 2015

TABLE OF CONTENTS ITEM NO. SUBJECT PAGE NO.

1. DECLARATION OF OPENING AND ANNOUNCEMENT OF VISITORS................................................... 2

2. ATTENDANCE ............................................................................................................................... 2

3. PUBLIC QUESTION TIME ................................................................................................................ 2

4. DISCLOSURE OF INTERESTS ........................................................................................................... 2

5. CONFIRMATION OF MINUTES ....................................................................................................... 3

5.1 Minutes of the Finance Committee held on 7 May 2015 ..................................................... 3

6. REPORTS ...................................................................................................................................... 4

6.1 FINANCE COMMITTEE INFORMATION BULLETIN - APRIL 2015 ............................................ 4

6.2 FINANCIAL ACTIVITY STATEMENTS – PERIOD ENDING 30 APRIL 2015 ................................. 7

6.3 LIST OF PAYMENTS MADE – APRIL 2015 ............................................................................ 14

6.4 PROPOSED DIFFERENTIAL RATES IN THE DOLLAR AND ASSOCIATED MINIMUM PAYMENTS – 2015/16 FINANCIAL YEAR ............................................................................. 16

6.5 CULTURAL PRECINCT ACTIVATION ACTIVITIES ................................................................... 20

6.6 HERITAGE: LOCAL HISTORY; BUSSELTON SETTLEMENT ART PROJECT STEERING COMMITTEE ........................................................................................................................ 27

7. GENERAL DISCUSSION ITEMS ...................................................................................................... 30

8. NEXT MEETING DATE .................................................................................................................. 30

9. CLOSURE .................................................................................................................................... 31

Finance Committee 2 4 June 2015

MINUTES

MINUTES OF FINANCE COMMITTEE HELD IN THE COMMITTEE ROOM, ADMINISTRATION BUILDING, SOUTHERN DRIVE, BUSSELTON, ON 4 JUNE 2015 AT 9.30AM.

1. DECLARATION OF OPENING AND ANNOUNCEMENT OF VISITORS

The Presiding Member opened the meeting at 9.30am.

2. ATTENDANCE

Presiding Member:

Members:

Cr Ian Stubbs Mayor Cr Grant Henley Cr Gordon Bleechmore Cr Jenny Green Cr Coralie Tarbotton - Deputy

Officers: Mr Mike Archer, Chief Executive Officer (from 9.36am) Mr Paul Needham, Director, Planning and Development Services (from 10.21am until 11.10am) Miss Lynley Rich, Manager, Governance Services (from 10.05am until 10.19am) Mr Matthew Riordan, Manager, Strategic Planning and Development (from 10.22am until 11.10am) Mr Ehab Gowegati, Financial Accountant (until 10.03am) Mr Stephen Wesley, Engineering Management Accountant (until 10.03am) Mr David Whitfield, Rates Coordinator (until 10.03am) Mr Daniel Hall, Asset Coordinator (from 9.31am until 9.33am) Mr Jeremy O’Neill, Community Development Coordinator (from 10.33am until 11.10am) Mrs Corinne Carrington, Administration Officer, Governance Apologies Cr John McCallum Approved Leave of Absence Nil

3. PUBLIC QUESTION TIME

Nil

4. DISCLOSURE OF INTERESTS

Nil

9.31am At this time the Asset Coordinator entered the meeting.


5. CONFIRMATION OF MINUTES

5.1 Minutes of the Finance Committee held on 7 May 2015

COMMITTEE DECISION F1506/030 Moved Councillor J Green, seconded Councillor C Tarbotton

That the Minutes of the Finance Committee Meeting held 7 May 2015 be confirmed as a true and correct record.

CARRIED 5/0


6. REPORTS

6.1 FINANCE COMMITTEE INFORMATION BULLETIN - APRIL 2015

SUBJECT INDEX: Councillor's Information STRATEGIC OBJECTIVE: Governance systems that deliver responsible, ethical and accountable

decision-making. BUSINESS UNIT: Finance and Information Technology ACTIVITY UNIT: Executive Services REPORTING OFFICER: Manager, Finance and Information Technology - Darren Whitby

Asset Coordinator - Dan Hall Administration Officer, Governance - Corinne Carrington

AUTHORISING OFFICER: Chief Executive Officer - Mike Archer VOTING REQUIREMENT: Simple Majority ATTACHMENTS: Attachment A Investment Performance Report - Period Ending 30

April 2015

PRÉCIS This report provides an overview of information that is considered of relevance to members of the Finance Committee, and also the Council.

INFORMATION BULLETIN 1. Investment Performance 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 April 2015, the value of the City’s invested funds totalled $68.2M (including $18M associated with the Civic and Administration Centre project). This represents a reduction of $1.1M on the prior month’s closing balance. During the month, $7.5M in term deposit funds were renegotiated, for an average of 140 days, and at an average rate of 2.90%, reflecting a reduction of 0.14% on the previous month’s average interest rate. As at the end of April, credit interest earnings are collectively tracking below year to date budget estimates by approximately $135K. Whilst interest on reserve funds reflects a favourable variance of $75K, interest on municipal funds is falling short of YTD budget estimates by $210K. Current projections are that by financial year end, a collective adverse variance of up to $210K will be evident. Whilst interest on reserve funds is expected to exceed annual budget estimates by up to $70K, municipal interest earnings is expected to fall short of annual budget estimates by up to $280K, which will directly impact on the financial year closing surplus/ deficit position. As predicted, at its May 2015 meeting, the Reserve Bank reduced the official cash rate by 25 basis points to 2.0%. This has, and will continue to, impact on interest earnings performance over coming months, and into the 2015/16 financial year. 2. Chief Executive Officer – Corporate Credit Card Details of monthly transactions made on the Chief Executive Officer’s corporate credit card are provided below to ensure there is appropriate oversight and awareness of credit card transactions made.


Date Amount Payee Description

25/03/2015 $236.00 Paypal: Harvey Norman Canvas prints: local scenes - Public Relations

07/04/2015 $747.34 Fotofolia Photos for Christmas promotions – Public Relations

16/04/2015 $644.00 Qantas Airfares to LG CEO’s meeting – CEO and partner (50% to be reimbursed)

24/04/2015 $80.00 Busselton Florist Bereavement flowers – CEO of Shire of Capel

24/04/2015 $176.00 Laundry 43 Cafe Business lunch – Ranger Services

25/04/2015 $661.50 Qantas Return airfares - LG CEO’s meeting – CEO and partner (50% to be reimbursed)

3. Voluntary Contributions/ Donations (Income) At its meeting of 22 September 2010, the Council adopted (C1009/329) its Voluntary Contributions/ Donations Policy. This Policy requires that the Finance Committee be informed (via an information only bulletin) of any instances whereby voluntary contributions/ donations are approved by the Chief Executive Officer or jointly by the Mayor and Chief Executive Officer.

The voluntary cash contribution towards the beach shower at Dawson Drive, Yallingup was reported as part of the September 2014 Finance Committee Information Bulletin. No subsequent voluntary contributions have been reported. 4. Donations/ Contributions and Subsidies Fund (Sponsorship Fund – Payment of Funds) Council resolved in April 2010 (C1004/132) a move towards a tiered system of funding and following the 6 October 2011 Finance Committee meeting, it was recommended to Council that the delegation to determine the allocations of sponsorship and donations from the sponsorship fund be revoked and be returned to the Chief Executive Officer to enable a more timely turnaround of sponsorship applications. Current expenditure from the Donations, Contributions and Subsidies Fund (Sponsorship Fund) reveals:

60 applications for sponsorship have been received during this financial year.

The average donation approved for the financial year is $324.91.

There were nil applications for sponsorship received or assessed during April 2015.

Expenditure from the Donations, Contributions and Subsidies Fund (Sponsorship Fund) for the financial year totals $18,195.00.

Total budget for the Donations, Contributions and Subsidies Fund (Sponsorship Fund) is $26,050.00.

App. No. Recipient Purpose Amount

Nil

5. Asset Management Report Fair Value Fair value for kerbs (as an addition to roads), bridges, jetties and coastal infrastructure (including Busselton Jetty) are currently being finalised for presentation to finance by mid June.


Donated Assets Donated assets (roads, drains, paths) for 2014/15 currently sits at $7.2M. These assets have come from areas such as Old Broadwater Farm, Provence, Dunsborough Lakes, Settlers beach and Dawson Estate.

COMMITTEE DECISION AND OFFICER RECOMMENDATION F1506/031 Moved Councillor G Bleechmore, seconded Councillor C Tarbotton

That the Finance Committee notes the Finance Committee Information Bulletin for the month of April 2015.

CARRIED 5/0

9.33am At this time the Asset Coordinator left the meeting and did not return.


6.2 FINANCIAL ACTIVITY STATEMENTS – PERIOD ENDING 30 APRIL 2015

SUBJECT INDEX: Budget Planning and Reporting STRATEGIC OBJECTIVE: An organisation that is managed effectively and achieves positive

outcomes for the community. BUSINESS UNIT: Finance and Information Technology ACTIVITY UNIT: Finance REPORTING OFFICER: Manager, Finance and Information Technology - Darren Whitby AUTHORISING OFFICER: Director, Finance and Corporate Services - Matthew Smith VOTING REQUIREMENT: Simple Majority ATTACHMENTS: Attachment A Financial Activity Statements - Period Ending 30 April

2015

PRÉCIS Pursuant to Section 6.4 of the Local Government Act (‘the Act’) and Regulation 34(4) of the Local Government (Financial Management) Regulations (‘the Regulations’), a local government is to prepare, on a monthly basis, a statement of financial activity that reports on the City’s financial performance in relation to its adopted/ amended budget. This report has been compiled to fulfil the statutory reporting requirements of the Act and associated Regulations, whilst also providing the Council with an overview of the City’s financial performance on a year to date basis for the period ending 30 April 2015.

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 of 30 July 2014, the Council adopted (C1407/190) the following material variance reporting threshold for the 2014/15 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 2014/15 financial year to comprise 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 on a quarterly basis.


STATUTORY ENVIRONMENT Section 6.4 of the Local Government Act and Regulation 34 of the Local Government (Financial Management) Regulations detail the form and manner in which a local government is to prepare financial activity statements. RELEVANT PLANS AND POLICIES Not applicable. FINANCIAL IMPLICATIONS Any financial implications are detailed within the context of this report. STRATEGIC COMMUNITY OBJECTIVES This matter principally aligns with Key Goal Area 6 – ‘Open and Collaborative Leadership’ and more specifically Community Objective 6.3 - ‘An organisation that is managed effectively and achieves positive outcomes for the community’. The achievement of the above is underpinned by the Council strategy to ‘ensure the long term financial sustainability of Council through effective financial management’. RISK ASSESSMENT Risk assessments have been previously completed in relation to a number of ‘higher level’ financial matters, including timely and accurate financial reporting to enable the Council to make fully informed financial decisions. The completion of the monthly Financial Activity Statement report is a treatment/ control that assists in addressing this risk. CONSULTATION Not applicable. 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 year to date basis, and reconciles with the net current position as per the Statement of Financial Activity. Capital Acquisition Report This report provides year to date budget performance (by line item) in respect of the following capital expenditure activities: o Land and Buildings o Plant and Equipment


o Furniture and Equipment o Infrastructure Reserve Movements Report This report provides summary details of transfers to and from reserve funds, and also associated interest earnings on reserve funds, on a year to date basis. Reserve Transfers to Municipal Fund This report provides specific detail in respect of expenditures being funded from reserves. Additional reports and/ or charts are also provided as required to further supplement the information comprised within the statutory financial reports. COMMENTS ON FINANCIAL ACTIVITY TO 30 APRIL 2015 Operating Activity Operating Revenue As at 30 April 2015, there is a variance of +0.9% in total operating revenue, with the following categories exceeding the 10% material variance threshold:

Description Variance %

Variance $000’s

Operating Grants, Subsidies and Contributions +18% +$559

Non-Operating Grants, Subsidies and Contributions -19% -$960

Profit on Asset Disposals +315% +$29

A summary of the above variances is provided as follows: Operating Grants, Subsidies and Contributions (+$559K) The current variance is primarily attributable to: The earlier than projected raising of an invoice for the balance of the Busselton Jetty Licence

Agreement payment for 2014/15 (+$346K) The reimbursement of ‘employee costs’ related expenses, including parental leave and workers

compensation payments (+$113K) The receipt of several insurance scheme dividends, and the reimbursement of insurance

settlement payments (+$50K) Timing differences in relation to the receipt of a range of minor operating grants, along with

budget shortfalls in a selection of ‘reimbursement’ type budgets; due to the associated expenditures not being incurred in the first instance (e.g. legal expenses)

Notwithstanding the current favourable variance, the Annual Budget Review has identified that as at the end of March 2015, only the insurance scheme dividends received comprise windfall revenue, with the majority of this ($50K) having previously been transferred to the Infrastructure Development Reserve as current financial year savings. Non-Operating Grants, Subsidies and Contributions (-$960K) The current variance is primarily attributable to: The receipt of additional developer contributions above year to date budget estimates (+$429K) The earlier than projected receipt of a Department of Sport and Recreation grant for Barnard

Park works (+$319K) The accounting recognition of donated assets, including a fire tender from DFES (+$123K)


Timing differences associated with the receipt of capital grant funding including, but not limited to, the following activities:

o Road construction grant funding (-$527K) o Beach restoration and Boat-ramp grant funding (-$513K)

o Bridge construction grant funding (-$355K) o Airport terminal building and Airport related infrastructure works (-$236K) o Beachfront infrastructure works – including shark nets (-$171K)

It should be noted that developer contributions and donated assets revenue have no direct impact on the City’s surplus/ deficit position. Developer contributions are transferred to equity upon receipt, via the ‘Transfers to Restricted Assets’ capital expenditure activity, with donated assets accounted for in the City’s balance sheet. Profit on Asset Disposals (+$29K) The current variance remains attributable to book profits on the sale, through auction, of obsolete computer equipment and sundry plant items. In most cases, the items had a zero written down value, with any funds received representing a book profit on disposal. This is in addition to higher than projected changeovers on a range of light and heavy plant items. It should be noted that Profit on Asset Disposals represents accounting entries only, and has no direct impact on the surplus/ deficit position. Operating Expenditure As at 30 April 2015, there is a variance of -2.9% in total operating expenditure, with the following categories exceeding the 10% material variance threshold:


Variance $000’s

Materials and Contracts -20% -$2,574

Depreciation on Non-current Assets +20% +$1,669

Insurance Expenses -11% -$88

Loss on Asset Disposals +122% +$81

A summary of the above variances is provided as follows: Materials and Contracts (-$2,574K) Due to the nature of this expenditure category, variances are evident across a broad range of activities. However, the major variances, which are predominantly due to timing differences, include: Collective contractor expenditure is presently $1,131K below year to date budget estimates and

includes, amongst others, recycling contractors (-$258K), coastal protection related contractors (-$300K), Vasse & Provence specified area rate contract maintenance works (-$340K) and also numerous building contractor related works (e.g. Nautical Lady Lighthouse demolition of $150K). Conversely, current overspends include a range of Parks and Gardens expenditures (+$230K), tree pruning (+$78K) and road maintenance contractor expenses (+$78K).

Collective consultancy expenditure is presently $475K below year to date budget estimates Building maintenance services (including contract cleaning and general maintenance) is presently

$217K below year to date budget estimates Collective Legal expenses are presently $144K below year to date budget estimates Leasing expenses are presently $92K below year to date budget estimates Plant and equipment maintenance services is presently $126K below year to date budget

estimates (primarily fuel, oils and grease -$118K)


The remainder of the variance is attributable to budget variances in a range of expenditure types including but not limited to, material purchases, maintenance services and non capital asset acquisitions. Whilst the current collective variance is primarily as a result of budget timing matters at this juncture, the Annual Budget Review has estimated that a net shortfall of approximately $390K may be evident in this category at financial year end. Depreciation on Non-current Assets (+$1,669K) This variance is primarily attributable to the Buildings fair value valuation (as at 30 June 2014), coupled with the significant value of donated assets brought to account as at last financial year end. The depreciation budget is developed reasonably early in the annual budget process, based on financial year end projections. Whilst generally accurate, this approach has this year been impacted by the aforementioned activities, the outcomes of which were not known until very late in the 2013/14 financial year. It should be noted however that depreciation expense is reversed as a non cash adjustment, and as such has no net effect on the surplus/ deficit position. Insurance Expenses (-$88K) This variance is primarily attributable to property and plant insurance premiums, which continue to reflect variances of -$46K and -$49K respectively. Whilst additional minor expenses are anticipated as additions and amendments are made to the City’s Insurance Schedule, a saving of up to $85K is still expected as at financial year end. Loss on Asset Disposals (+$81K) This variance remains primarily attributable to book losses on the disposal of obsolete computer equipment, sundry plant items and a range of light and heavy vehicles. It should be noted that Loss on Asset Disposals represents accounting entries only, and has no direct impact on the surplus/ deficit position. Capital Activity Capital Revenue As at 30 April 2015, there is a variance of -22.4% in total capital revenue, with the following categories exceeding the 10% material variance threshold:


Variance $000’s

Proceeds from Sale of Assets -26% -$229

Proceeds from New Loans -27% -$6,800

Transfers from Restricted Assets +24% +$656

A summary of the above variances is provided as follows: Proceeds from Sale of Assets (-$229K) This variance continues to be primarily attributable to timing differences in relation to plant acquisitions and changeovers, as evidenced by the current variance in the ‘Plant and Equipment’ capital expenditure activity. Performance in this category has limited direct impact on the surplus/ deficit position, as revenue from the sale of assets, combined with reserve transfers, generally fully offset the associated capital expenditure transaction. Proceeds from New Loans (-$6,800K) This variance is attributable to the delay in the drawdown of the Busselton Foreshore borrowing facility of $6.8M, which was originally budgeted to be drawn in March 2015. The loan (value reduced to $6.5M) has subsequently been locked in for drawdown on 13 May 2015.


Transfers from Restricted Assets (+$656K) Due to the nature of this category, the annual budget is predominantly spread evenly across the financial year. The transfers processed so far this financial year relate to the return of bond monies ($1.7M), and also the transfer of 2013/14 unspent loan funds ($1.57M) pertaining to the Geographe Leisure Centre Extensions and Barnard Park projects. Performance in this category has no direct impact on the surplus/ deficit position, as associated transactions are either ‘off’ balance sheet (deposits and bonds), or represent equity transfers to fund associated expenditures (including loan funds). Capital Expenditure As at 30 April 2015, there is a variance of -24.8% in total capital expenditure, with the following categories exceeding the 10% material variance threshold:


Variance $000’s

Land & Buildings -43% -$3,005

Plant and Equipment -29% -$1,001

Furniture and Office Equipment -28% -$126

Infrastructure -50% -$10,943

Advances to Community Groups -100% -$30

Transfers to Restricted Assets +76% +$660

The attachments to this report include detailed listings of the following capital expenditure (project) items, to assist in reviewing specific variances: Land and Buildings Plant and Equipment Furniture and Office Equipment Infrastructure A summary of the remaining variances is provided as follows: Advances to Community Groups (-$30K) This matter relates to the drawdown of the budgeted self-supporting loan of $30K in favour of the Busselton Football and Sportsman’s Club; to carry out repairs to the Bovell Park football clubrooms. The loan facility was drawn during April 2015, with the loan funds to be paid to the Club during May 2015. Transfers to Restricted Assets (+$660K) Similar to ‘Transfers from Restricted Assets’, the annual budget in this category is spread evenly across the financial year. The favourable year to date variance is due to the receipt of developer contributions totalling approximately $1,185K, along with bond and deposit receipts totalling approximately $339K. As with ‘Transfers from Restricted Assets’, performance in this category has no direct impact on the surplus/ deficit position, as associated transactions are either ‘off’ balance sheet (deposits and bonds), or represent equity transfers to quarantine funds received in the form of, amongst others, developer contributions (via the ‘Non-Operating Grants, Subsidies and Contributions’ operating revenue category). BUDGET VARIATIONS AND OTHER ‘KNOWNS’ In considering the October 2014 Financial Activity Statements, the Council determined (C1412/338) to quarantine a number of windfall revenues and identified savings to the Infrastructure Development Reserve; summarised as follows:


Description Amount $

September 2013 Storm Damage Claim Reimbursement 99,092

Insurance Scheme Surplus Distribution 50,336

Loan Repayments – Civic and Administration Centre 83,919

TOTAL 233,347

CONCLUSION As per the 2014/15 Annual Budget Review, the City’s overall financial performance to 31 March 2015 was considered satisfactory, with a surplus closing position in the order of $900K projected as at 30 June 2015. Based on the City’s financial performance to 30 April 2015, there is nothing to indicate that the Annual Budget Review comments do not remain valid. The previous month’s operating revenue and expenditure performance has generally continued during April. Operating revenue continues to reflect a year to date variance of less than +1%, with the operating expenditure variance remaining below -3%. The charts as attached to this report reflect the actual/ budget congruence in these activities. Whilst significantly higher in magnitude, capital revenue and expenditure performance has also continued to reflect that of the prior month, with variances of approximately -22% and -25% respectively. Notwithstanding the above, it is worthy of noting that as indicated in the attached ‘year on year comparative’ chart, the Net Current Position as at 30 April 2015 is approximately $2.1M less than at the same time last financial year. As at the end of April 2015 however, there is the capacity to transfer approximately $5M from reserve funds, plus a further $1.6M already expended on Busselton Foreshore projects; which are subject to loan funding. Consequently, the April 2015 figure (in comparison to previous financial years) is not in itself specifically conducive to assessing the City’s overall financial performance on a year to date basis. OPTIONS The Council may determine not to receive the statutory financial activity statement reports. TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION NA.

COMMITTEE RECOMMENDATION AND OFFICER RECOMMENDATION F1506/032 Moved Councillor C Tarbotton, seconded Councillor G Henley

That the Council receives the statutory financial activity statement reports for the period ending 30 April 2015, pursuant to Regulation 34(4) of the Local Government (Financial Management) Regulations.

CARRIED 5/0


6.3 LIST OF PAYMENTS MADE – APRIL 2015

SUBJECT INDEX: Financial Operations STRATEGIC OBJECTIVE: An organisation that is managed effectively and achieves positive

outcomes for the community. BUSINESS UNIT: Finance and Information Technology ACTIVITY UNIT: Finance REPORTING OFFICER: Manager, Finance and Information Technology - Darren Whitby AUTHORISING OFFICER: Director, Finance and Corporate Services - Matthew Smith VOTING REQUIREMENT: Simple Majority ATTACHMENTS: Attachment A List of Payments Made - April 2015

PRÉCIS This report provides details of payments made from the City’s bank accounts for the month of April 2015, for noting by the Council and recording in the Council Minutes.

BACKGROUND The Local Government (Financial Management) Regulations require that when the Council has delegated authority to the Chief Executive Officer to make payments from the City’s bank accounts, that a list of payments made is prepared each month for presentation to, and noting by, the Council. STATUTORY ENVIRONMENT Section 6.10 of the Local Government Act and more specifically, Regulation 13 of the Local Government (Financial Management) Regulations; refer to the requirement for a listing of payments made each month to be presented to the Council. RELEVANT PLANS AND POLICIES NA. FINANCIAL IMPLICATIONS NA. STRATEGIC COMMUNITY OBJECTIVES This matter principally aligns with Key Goal Area 6 – ‘Open and Collaborative Leadership’ and more specifically Community Objective 6.3 - ‘An organisation that is managed effectively and achieves positive outcomes for the community’. RISK ASSESSMENT NA. CONSULTATION NA.

9.36am At this time the Chief Executive Officer entered the meeting.


OFFICER COMMENT NA. CONCLUSION NA. OPTIONS NA. TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION NA.

COMMITTEE RECOMMENDATION AND OFFICER RECOMMENDATION F1506/033 Moved Councillor G Bleechmore, seconded Councillor G Henley

That the Council notes the payment of voucher numbers M111047 - M111240, EF039689 – EF040167, T007135 - T007139, and DD002437 - DD002465, together totalling $7,322,812.55.

CARRIED 5/0


6.4 PROPOSED DIFFERENTIAL RATES IN THE DOLLAR AND ASSOCIATED MINIMUM PAYMENTS – 2015/16 FINANCIAL YEAR

SUBJECT INDEX: Budget Planning and Reporting STRATEGIC OBJECTIVE: An organisation that is managed effectively and achieves positive

outcomes for the community. BUSINESS UNIT: Finance and Information Technology ACTIVITY UNIT: Finance REPORTING OFFICER: Financial Accountant - Ehab Gowegati AUTHORISING OFFICER: Director, Finance and Corporate Services - Matthew Smith VOTING REQUIREMENT: Simple Majority ATTACHMENTS: Nil

PRÉCIS In accordance with Section 6.36 of the Local Government Act (‘the Act’), where a local government intends to impose differential rates, or a minimum payment applying to a differential rate category, it is required to give local public notice of its intention to do so. The public notice is to invite submissions to the proposal for a period of not less than twenty one (21) days. The Council is required to consider any submissions received prior to it formally imposing the proposed differential rates in the dollar and associated minimum payments, with or without modification. . As it is intended that differential rates will be imposed as part of the Council’s 2015/16 annual budget, this report seeks the Council's endorsement to provide public notice of the proposed differential rates in the dollar and associated minimum payments as recommended in this report.

BACKGROUND Pursuant to Section 6.33 of the Act, a local government may determine to impose differential rates according to a range of characteristics, including the purpose for which land is zoned, the purpose for which land is held or used, or whether the land is vacant land. As part of its 2014/15 adopted budget, the Council imposed differential rates and associated minimum payments in line with the above characteristics. A synopsis of the currently adopted differential rating categories is provided as follows: Gross Rental Value (GRV) Industrial/ Commercial (Improved) This differential rating category is reflective of the additional rates levied to assist in funding tourism and marketing activities throughout the district. Industrial/ Commercial (Vacant Land) Whilst also contributing to the funding of tourism and marketing activities, a lower rate in the dollar applies to this category, to assist in tempering the impacts of the comparatively higher vacant land valuations (as compared to improved properties). Unimproved Valuation (UV) UV Rural This differential rating category acknowledges the higher comparative valuations within the unimproved land use category, and typically relates to non-income earning properties used or held for residential purposes.


UV Commercial This differential rating category is cognisant of the associated land use, which typically relates to commercial activities not defined as being of a primary production nature. In addition to the above differential rates, the Council has general rates for both the GRV and UV components, which have historically been assigned to the Residential (GRV) and Primary Production (UV) categories. It is proposed that the prevailing differential and general rating categories will be maintained as part of the 2015/16 annual budget. With regards to the rates in the dollar and associated minimum payments proposed to be imposed in 2015/16, these have been predicated on a general rate increase of 4.75%, coupled with a further 1% increase in the industrial/ commercial zone groups; for tourism and marketing activities. These increases are 0.5% less than the Council’s currently endorsed Long Term Financial Plan. STATUTORY ENVIRONMENT Sections 6.25 to 6.82 of the Act refer to rates and service charges. However, this report more specifically refers to the following sections of the Act; Section 6.33 - Differential general rates Section 6.35 - Minimum payment Section 6.36 - Local government to give notice of certain rates RELEVANT PLANS AND POLICIES The Council’s Rating Policy (236) states that the Council supports the use of differential rating as a tool in which to realise equitable rating. The Council’s endorsed Long Term Financial Plan informs the level of general rate increases required to be levied in each financial year of the Plan. FINANCIAL IMPLICATIONS The Council’s currently endorsed (C1306/144) Long Term Financial Plan includes a general rate increase of 5.25% in the 2015/16 financial year. In addition to a general rate increase of 3% (based on the 10 year rolling average Consumer Price Index), a further 1% is earmarked for road asset management plan funding purposes, with a further 1.25% to assist in funding loan repayments associated with the construction of the Civic and Administration Centre. At its meeting of 14 May 2014, the Council supported (C1405/125) a further increase of 1% in respect of the differential rate for tourism and marketing activities. The 2015/16 draft annual budget has been developed in line with the aforementioned rating determinations, noting that operational reductions have been made such that a 0.5% reduction in the extent of rates increases has been achieved. Long-term Financial Plan Implications The Council’s Long Term Financial Plan includes specific extrapolation assumptions pertaining to the level of general rate increases required each financial year, which ensure that the Plan is able to be funded.


STRATEGIC COMMUNITY OBJECTIVES This matter principally aligns with Key Goal Area 6 – ‘Open and Collaborative Leadership’ and more specifically Community Objective 6.3 - ‘An organisation that is managed effectively and achieves positive outcomes for the community’. RISK ASSESSMENT Not applicable. CONSULTATION Not applicable. OFFICER COMMENT The differential rates in the dollar and associated minimum repayments, as recommended for endorsement for public notice purposes, have been predicated on the Council’s currently endorsed Long Term Financial Plan which the level of rate increase being reduced by 0.5%. This proposal was reaffirmed as part of the 2015/16 draft budget workshops. The further increase of 1% for tourism and marketing activities has also recently been supported by the Council. Whilst rate modelling has been undertaken using the above parameters, it is important to note that properties valued at unimproved value (UV) are subject to an annual valuation, whereas gross rental valuations (GRV) are conducted every three years. This year there have been both UV and GRV revaluations. Accordingly, the rate increases on all properties may vary from the general 4.75% increase; albeit the collective value of rates levied will generally increase by this percentage. It is also worthy of noting that Section 6.33 (Differential rates) and Section 6.35 (Minimum payment) of the Act require that certain ratios be complied with in respect of, amongst others, differential rating comparatives, general minimum payments and the number of properties subject to minimum payments. These matters have also been addressed as part of the rates modelling process. In accordance with Section 6.36 of the Act (Local government to give notice of certain rates), public notice is required to be given where a local government intends to impose differential rates, or a minimum payment applying to a differential rate category. The public notice is to invite submissions to the proposal for a period of not less than twenty one (21) days. The Council is required to consider any submissions received prior to it formally imposing the proposed differential rates in the dollar and associated minimum payments, with or without modification. As in previous years, and unless circumstances require otherwise, it is proposed that any submissions received will be presented to the Council at which time it formally considers its 2015/16 annual budget. Whilst not required to do so, it is proposed that in addition to the differential rates in the dollar and associated minimum payments, that the Council also gives public notice of the general rates in the dollar and associated minimum payments. This is simply to provide ratepayers with additional comparative data. CONCLUSION The proposed differential rates in the dollar and associated minimum payments are analogous with related Council determinations, and as such, are recommended for endorsement for public notice purposes. At this stage all that is needed is endorsement to advertise the proposed rates and thus a finance committee decision is sufficient to proceed with advertising.


A decision whether or not to impose the rates will not be formally made until budget adoption. The Council may determine to amend the advertised rates in the dollar and/or associated minimum payments at which time it formally adopts its budget, without the need for further public notice. Should this occur, the reasons for not adopting the advertised rates in the dollar and/ or associated minimum payments are required to be disclosed in the Annual Budget and also as part of the rates notice; pursuant to Regulations 23(b) and 56(4)(b) of the Local Government( Financial Management) Regulations. OPTIONS The Council may determine to amend the proposed differential rates in the dollar and associated minimum payments as recommended in this report. In doing so however, the Council would need to be mindful of the requirements of Sections 6.33 and 6.35 of the Act. TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION Consequent to the Council’s determination in this matter, public notice will be given as soon as practicable thereafter.

COMMITTEE DECISION AND OFFICER RECOMMENDATION F1506/034 Moved Councillor C Tarbotton, seconded Councillor J Green

That the Council endorses the following differential rates in the dollar and associated minimum payments, and general rates in the dollar and associated minimum payments, proposed to be imposed for the 2015/16 financial year, for public notice purposes:

Description Rate in the $ Minimum Payment

Differential Rates

GRV - Industrial/ Commercial (Improved) 9.6010c $1058

GRV - Industrial/ Commercial (Vacant Land) 10.5764c $1058

UV - Rural 0.3469c $1058

UV - Commercial 0.6807c $1058

General Rates

GRV – Residential (Improved and Vacant Land) 8.0266c $1058

UV – Primary Production 0.3734c $1058

CARRIED 5/0


6.5 CULTURAL PRECINCT ACTIVATION ACTIVITIES

SUBJECT INDEX: Arts & Culture STRATEGIC OBJECTIVE: A City where the community has access to quality cultural, recreation,

leisure facilities and services. BUSINESS UNIT: Community Services ACTIVITY UNIT: Community Development REPORTING OFFICER: Cultural Development Officer - Jacquie Happ AUTHORISING OFFICER: Director, Community and Commercial Services - Naomi Searle VOTING REQUIREMENT: Absolute Majority ATTACHMENTS: Attachment A Cultural Precinct Activation Strategy

Attachment B Blackboards and Community Art Projects

PRÉCIS The purpose of this report is to seek Council’s approval to amendment the 2014/15 adopted budget to enable activities to support the activation of the Cultural Precinct, as per the Cultural Precinct Activation Plan. A budget amendment to transfer $3,900 from the Cultural Development Marketing and Promotions budget (330-10900-3623-0000) to Other Capital Expenditure Expense Offset Account Furniture and Equipment (330-10900-7743-0000) is proposed to purchase equipment for the vacant lot in the Cultural Precinct.

BACKGROUND The Cultural Precinct is the focal point for art and cultural pursuits within the City and includes the ArtGeo Cultural Complex and the Weld Theatre. The Cultural Precinct Activation Plan (CPAP) (Attachment A) is an operational document that contains ideas for meaningful activities and projects that aim to activate the Precinct by increasing the community’s awareness of the area and bringing more people to visit the heritage buildings and art gallery. The CPAP has four key elements as follows:

• Cultural Precinct Reference Group • ArtGeo Stakeholder Group • Value adding to existing opportunities • Identifying new opportunities.

Each of these elements, whilst inter-related, have specific focus areas and targets for implementation. Specifically these include: Cultural Precinct Reference Group This group comprises City officers across a number of directorates that develops strategies and initiatives to specifically activate the Cultural Precinct. Strategies include:

1. Events 2. Streetscape initiatives 3. Public Art 4. Interpretation and cultural heritage information 5. Activation projects, infrastructure and programs 6. “Pop up” art and cultural initiatives 7. Community Art


ArtGeo Stakeholders Group The stakeholder group is a network of representatives of community groups and artists who work and operate within the Cultural Precinct. The group is encouraged to:

develop and undertake projects and form partnerships with each other

develop and undertake projects with City officers and external agencies as appropriate, including the initiation and preparation of grant applications for identified projects and programmes

share information and facilities and assets where possible

meet quarterly at alternate venues in the precinct to share plans, discuss issues and collect ideas.

Value Adding to Existing Opportunities Due to the success of stakeholders and Officers working together there are a number of initiatives that have been completed or are well underway, these include:

Business and Marketing Plan for the ArtGeo Cultural Complex

Fringe Festival annual event

“Legendairy” Cow installation in the Courtyard

Initiatives to increase patronage of the Post Office Tea Room

The vacant lot between the ArtGeo Gallery and the Weld was turfed with lawn to provide a place of rest, passive recreation and activation by markets

Settlement Art Project continues to gain momentum with funding for the third sculpture almost attained, new fundraising activities are already being planned for 2015/2016

Heritage Tours were trialled for the Cruise ship visits and proved so successful, that they are now conducted most weekends and once a week, a few times a day

Studio Artists program is revitalised providing opportunities to a range of artists emerging and professional

Officers have collaborated with and encouraged community groups leasing premises to create business plans

The courtyard is utilised more by the Youth Development Team as an outdoor concert venue

Increased Fodder Room hire from a broader range of people. New Opportunities Developed Many new opportunities identified in the plan have either now been or are being implemented. These include the following:

Arts projects – for example, Rio Tinto’s FIVE which rolled out in November 2013, provided a showcase for community engagement in art projects.

Rio Tinto and CinefestOz have booked the Cultural precinct for a festival to run Aboriginal activities and film as part of a high profile art exhibition called Colours: From Country to Coast featuring Kimberly artists

The ArtGeo Coordinator is liaising with Art Gallery of WA to loan the works of local Aboriginal artists to complement the Colours exhibition

City’s Acquisitive Prize increased to $10,000 achieved quality outcomes and entries from a broader field.

Cruise Ship and Art Geo Markets

Heritage interpretation including the use of new technologies

A new partnership has commenced with the Busselton Historical Society to loan items for display as part of the interpretation of the Courthouse

Pop up food market was trialled during the fringe festival with great success.

Recently the Courtyard was used for a special ‘Food event for women only’, coordinated by the South West Catchment Group

Busselton Settlement Art interpretation


‘Live’ presentations of the Busselton Settlement Art sculptures at both the Festival of Busselton Float parade and the History Wall unveiling at the 2015 Fringe Festival.

Visitation has increased substantially in the Cultural Precinct since the CPAP was developed, with the number of visitors surpassing expectations. There was a spike in visitor numbers during the Rio Tinto “FIVE” project in November 2013. Other factors adding to increased visitation include the addition of the Sunday morning market once a month in spring, summer and early autumn; the ANZAC exhibition; popularity of the café; the heritage tours; and the cruise ship market, which is now attracting locals as well as visitors. Many of the locals have reported being first time visitors to the precinct. This shows that there is opportunity to show off the Cultural Precinct to local people and thereby increase awareness and visitor numbers with meaningful activities and projects. This report details an opportunity, within existing budget, to activate the lawn area between the Weld Theatre and the ArtGeo Gallery with equipment that stimulates conversation, thought and activity across generations. STATUTORY ENVIRONMENT Under Section 5.8 of the Local Government Act 1995 (the Act), a local government, by absolute majority, may establish committees of three or more persons to assist the Council, and to exercise the powers and discharge the duties of the local government that can be delegated to committees. Authority can be delegated to formally constituted Committees of Council in accordance with Sections 5.16 and 5.17 of the Act. Under Section 6.8 of the Act, expenditure that is not included in the annual budget requires a resolution in advance of the expenditure with Absolute Majority. RELEVANT PLANS AND POLICIES

Social & Ageing Plan 2012 – 2020

Cultural Precinct Activation Plan FINANCIAL IMPLICATIONS The following budget amendment is recommended, noting that there is no net cost to the City.

Description Account String

2014/15 Adopted Budget $

2014/15 Amended Budget (PROPOSED) $

Variance $

Cultural Planning Marketing & Promotions

330-10900-3623-0000 6,241 1701 -4,540

Cultural Planning Expense Offset Account -Furniture & Equipment

330-10900-7743-0000 126,050 126,490 4,540

Net Variance 0

Long-term Financial Plan Implications Nil


STRATEGIC COMMUNITY OBJECTIVES This matter aligns with the City of Busselton Strategic Community Plan 2013 and principally with the following strategic goal: Well Planned, Vibrant and Active Places 2.1 A City where the community has access to quality cultural, recreation and leisure facilities and services. 2.2 A City of shared, vibrant and well planned places that provide for diverse activity and strengthen our social connections. RISK ASSESSMENT An assessment of the potential implications of implementing the officer recommendation has been undertaken by the City’s risk assessment framework. There are no identified risks associated with the officer recommendation. CONSULTATION Stakeholders at the ArtGeo Cultural Complex have also been consulted on the proposal. This was met with positive feedback and a willingness to assist, wherever possible, in the risk management controls above to ensure that the equipment is safe and well looked after. OFFICER COMMENT Through the creation of the CPAP many activities and projects have already been implemented which have resulted in increased visitors to the area. Activation requires some stimulation. Case study analysis from around the world points to ideas which are simple and increase public participation and thereby activate areas. Blackboards have been a popular means of generating interaction. They can be free standing, painted on vacant buildings or decrepit fences. A blackboard is a place for the community to leave a mark or comment, albeit permanent or temporary, in a meaningful way. See Attachment B - Blackboards and Community Art Projects, for examples. An oversized, moveable blackboard is proposed to provide a place where the community can express themselves on changing topics in an interactive environment. It can be placed on the green lawn adjacent to the ArtGeo Gallery and can be moved to other locations on occasion for events or projects. On the blackboard a question is posed for the passer-by who will leave a comment. Questions could include the following:

“Joke for the day

Proverb of the day

Thought for the Day

Before I die I want to

The best part about where I live,” A great example of the popularity of the blackboard is the “Before I Die global art project”, which invites people to reflect on their lives and share their personal aspirations in a public space. Normally the blackboard is located on a wall of an abandoned house or factory; the words have been repeated and considered by thousands of people across the world and are very deep and meaningful, with 500 of the projects created in over 70 countries. Staff and volunteers will regularly monitor the blackboard to ensure appropriate posts are made, and will remove anything inappropriate.


The second activation strategy activity Officers propose is the placement of an oversized chess set on the grassed area within the Precinct. Chess stimulates conversation and interaction between people. The chess set can be used by all generations and will bring people together to learn new skills and spend time together outside. The giant chess set in Fremantle was purchased many years ago and is still well utilised. Initially pieces went missing as it was left outside, however in order to mitigate this bench seat was installed with storage underneath so staff are able to put the pieces out each morning and away each evening. Signage has also been erected indicating that the chess set availabile during these times, and that it will be packed away at a certain time even if a game is in progress. Many people use it every day, and it is now an icon for Kings Square. The pieces sit on a board which is durable and long lasting. If supported by Council, the City’s chess would also be stored in a weatherproof, locked storage box adjacent to the grassed area in the Cultural Precinct. Cultural Planning has an annual Marketing and Promotions budget of $6,241, with a balance of $4892.50 remaining year to date. This budget is used for various promotional activities including the Busselton Settlement Art Project. Many activities that were run in the current financial year did not have a cost to the City or cost less than expected. The cost to commission the oversized blackboard is $2,400 (ex. GST) and a chess set is $2,140 (ex. GST), this includes the chess board, the pieces and the lockable storage box as part of the set. The purchase of these items will add to the vibrancy of the Cultural Precinct and add value to the activities that are already occurring. They will also be a useful, fun activity for passengers during Cruise Ship visits and during the local Sunday markets. The Cultural Precinct is a focal point for arts and culture in the City of Busselton and has a space that is vacant and could be easily activated by some small investments in interesting activities within the current financial year’s budget. Interactive equipment provides more than just entertainment. It is a means of engaging the audience to think deeply with feeling, which many activities do not allow a community to do. Providing meaningful engagement is stimulating and thought provoking. In the case of the blackboard, the writer is given authority to express themselves in a real way and give their thoughts about a topic in terms of feelings, memories or ideas. The community enjoys being engaged and enjoys the ability to be expressive. The blackboard project is able to be controlled though moderation however, with public expression, the positive and the negative thoughts can learn to live side by side. The blackboard can also be positioned in places of contradiction, as an alternative form of public consultation which is different from filling in forms or surveys. If it becomes too negative it can easily be moved to a different location or reused for display purposes. A chess set or draughts set which can be borrowed for free is a great way of providing entertainment for people of all ages as well as bringing people to the precinct. The City of Fremantle, has proved how this simple addition can make a real difference in terms of activating an area. Promotion of the equipment can be undertaken through the City of Busselton’s website, ArtGeo website and notice board, Busselton and Dunsborough Libraries and the Busselton Senior Citizens Centre. Additionally, the retirement villages, schools and community groups can be notified about the games being available. CONCLUSION A budget amendment requesting the transfer of funds from the Cultural Planning ‘Marketing and Promotions' budget to the ‘Other Capital Expenditure Expense Offset Account-Furniture and Equipment’ for the purchase of furniture and equipment will enable the blackboard and chess set to be purchased for the Cultural Precinct. As a strategy of the CPAP, this will add vibrancy to the Cultural Precinct and value-add to the activities that are already occurring to attract people to the


area and entertain and keep them there for longer. The blackboard is a means of generating conversation and consultation. The chess or draughts set can bring people of different generations together for a specific purpose of playing together in both a fun and educational form. OPTIONS The Council may choose not to approve the transfer of the funds to purchase equipment for the Cultural Precinct. The Council may choose to allow the purchase of only the blackboard or the chess set. TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION If approved, the oversized black board would be commissioned immediately. The purchase of the chess set would be immediate and received within one month. OFFICER RECOMMENDATION

ABSOLUTE MAJORITY DECISION OF COUNCIL REQUIRED That the Council approves an amendment to the 2014/15 adopted budget on the following basis:




Variance $


330-10900-3623-0000 6,241 1701 -4,540


330-10900-7743-0000 126,050 126,490 4,540

Net Variance 0

Note: During the meeting, an error was identified in the Cultural Planning Expense Offset Account -

Furniture & Equipment (proposed) section of the table in the Officer Recommendation. The error has been corrected to show the correct amount of $130,590.


COMMITTEE RECOMMENDATION

ABSOLUTE MAJORITY DECISION OF COUNCIL REQUIRED F1506/035 Moved Councillor G Henley, seconded Councillor G Bleechmore

That the Council approves an amendment to the 2014/15 adopted budget on the following basis:




Variance $


330-10900-3623-0000 6,241 1701 -4,540


330-10900-7743-0000 126,050 130,590 4,540

Net Variance 0

CARRIED 5/0


6.6 HERITAGE: LOCAL HISTORY; BUSSELTON SETTLEMENT ART PROJECT STEERING COMMITTEE

SUBJECT INDEX: Heritage STRATEGIC OBJECTIVE: A City of shared, vibrant and well planned places that provide for

diverse activity and strengthen our social connections. BUSINESS UNIT: Community Services ACTIVITY UNIT: Community and Commercial Services REPORTING OFFICER: Cultural Development Officer - Jacquie Happ AUTHORISING OFFICER: Manager, Community Services - Maxine Palmer VOTING REQUIREMENT: Simple Majority ATTACHMENTS: Nil

PRÉCIS The purpose of this report is to seek Council’s approval to amend the 2014/15 adopted budget through the transfer of $2,859 from the Cultural Planning Sundry Income Account to the Sundry Restricted Asset Account to contribute towards future sculptures in the Settlement Art Project.

BACKGROUND The Busselton Settlement Art Project (BSAP) is a public art initiative commemorating the successful establishment of Busselton as one of the first settlements outside Perth. The project consists of the commissioning of six (6) life-sized bronze sculptures (one per year subject to funding) at a total cost of approximately $700,000 (ex GST). The project is overseen by a formal Committee of Council, the Busselton Settlement Art Project Steering Committee (BSAPSC). The BSAPSC organizes events to keep the project in the public realm by raising awareness and to raise funds. The BSAPSC’s last fundraising event was held in November 2014 in the form of a garden party. The event featured a guest speaker and auction items, with income from the event totaling $2,859. This report seeks to transfer the income to a restricted asset account to ensure the funds are put towards the commissioning of the next sculpture in the project. STATUTORY ENVIRONMENT Under Section 5.8 of the Local Government Act 1995 (the Act), a local government, by absolute majority, may establish committees of three or more persons to assist the Council, and to exercise the powers and discharge the duties of the local government that can be delegated to committees. Authority can be delegated to formally constituted Committees of Council in accordance with Sections 5.16 and 5.17 of the Act. Under Section 6.8 of the Act, expenditure that is not included in the annual budget requires a resolution in advance of the expenditure with Absolute Majority. RELEVANT PLANS AND POLICIES Social & Ageing Plan 2012 – 2020 It is a goal of the City’s Social and Ageing Plan (2010-2020) that the City’s culture is celebrated, valued and retained. The installation of the BSAP is in line with this goal.

City of Busselton’s Ten Year Financial and Corporate Business Plans The BSAP has been identified as a key project in the City’s four year Corporate Business Plan and includes an allocation of $50k per year in 2015/16 and 2016/17.


The Local Planning Policy (6B) Percent for Art Provisions The Percent for Art Provisions allows developers to provide a cash in lieu contribution in place of an artwork at the site of the development application. The policy enables funds which are in the Percent for Art Cash in Lieu – Public Art Restricted Funds account collected in the Busselton (East) precinct of the City of Busselton to be directed to the Settlement Art Project as a priority. FINANCIAL IMPLICATIONS The budget transfer will reduce Council’s net current position by $2,859 at the end of the 2014/15 financial year. However these funds were raised for the purpose of the Settlement Art Project so it is considered appropriate to transfer the funds to a restricted asset account to allow for this in the future. Long-term Financial Plan Implications $50,000 per year until 2016/17 has been included in the City’s endorsed Long Term Financial Plan towards the commissioning of sculptures for the Settlement Art Project, however matching funds are required to be raised in order to fund individual statues. The transfer of funds from the BSAPSC’s fundraising activities in 2014/15 will assist in building funds for the commissioning of future statues. STRATEGIC COMMUNITY OBJECTIVES This matter aligns with the City of Busselton Strategic Community Plan 2013 and principally with the following strategic goal: Well Planned, Vibrant and Active Places 2.1 A City where the community has access to quality cultural, recreation and leisure facilities

and services. 2.2 A City of shared, vibrant and well planned places that provide for diverse activity and

strengthen our social connections. RISK ASSESSMENT An assessment of the potential implications of implementing the officer recommendation has been undertaken by the City’s risk assessment framework. There are no identified risks associated with the officer recommendation. CONSULTATION The participating members of the BSAPSC have been included in the process of discussing and forming the recommendations in this report. Consultation has also been ongoing with the Bussell family and key stakeholders identified for future sculptures yet to be commissioned. OFFICER COMMENT Funds raised by the BSAPSC is as a result of their hard work in fundraising activities for the Busselton Settlement Art Project. Tickets for the event in November were sold on the basis that the profits would go towards the project. Officers therefore recommend that the income from the Sundries Income Account (330-10900-1750-0000) of $2,859 be transferred to the Sundry Restricted Asset Account for the purposes of raising funding to commission the next sculpture for the Settlement Art Project.


CONCLUSION Although the transfer will reduce Council’s net current position by $2,859 at year end, the expectation from those who participated in the November fundraising event was that the funds raised would go towards the commissioning of the next sculpture. Significant fundraising is required for each sculpture and ongoing fundraising activities such as this will assist in reaching the funds required. OPTIONS The Council may chose not to transfer the funds that were raised by the BSAPSC and this will reduce the total funds available to complete the next sculpture. Donations and contributions are still needed to realize the third sculpture of J.G Bussell. TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION Should the Officer Recommendation be endorsed, Officers will transfer the funds from the Sundry Account to the Sundry Restricted Asset Account before the end of the 2014/15 Financial Year.

COMMITTEE RECOMMENDATION AND OFFICER RECOMMENDATION F1506/036 Moved Councillor J Green, seconded Councillor G Henley

That the Council approves the transfer of $2,859 from the Cultural Planning Sundry Income Account (330.10900.1750) to the Sundry Restricted Asset Account for the Busselton Settlement Art Project.

CARRIED 5/0

10.03am At this time the Financial Accountant, Engineering Management Accountant and Rates

Coordinator left the meeting and did not return. 10.03am At this time Councillor Henley and the Administration Officer, Governance left the meeting. 10.04am At this time the Administration Officer, Governance returned to the meeting. 10.05am At this time Manager, Governance Services entered the meeting. 10.08am At this time Councillor Henley returned to the meeting.


7. GENERAL DISCUSSION ITEMS

Local Government Banding by the Salary and Allowances Tribunal After discussions by Councillors at a recent budget workshop as to what Local Government Band the City was on, the Manager, Governance Services attended the meeting to advise the Committee that a submission had been made to the Salary and Allowances Tribunal for the City to go up to Band 1 from Band 2 to bring in line with other Local Governments. Once an outcome has been reached by the SAT, Councill will have the opportunity to increase to band 1 or stay at band 2.

10.18am At this time the Administration Officer, Governance left the meeting. 10.19am At this time the Manager, Governance Services left the meeting and did not return. 10.20am At ths time the Administration Officer, Governance returned to the meeting. 10.21am At this time the Director, Planning and Development Services entered the meeting. 10.22am At this time the Manager, Strategic Planning and Development entered the meeting.

Lot 40 Vasse Highway The Director, Planning and Development Services and the Manager, Strategic Planning and Development discussed with the Committee development options in relation to Lot 40 Vasse Highway and various loan scenarios for the proposed Bovell Oval expansion.

10.33am At this time the Community Development Coordinator entered the meeting. The Committee were supportive for the CEO to enter into an ‘Option to Purchase’ agreement with the registered proprietor of Lot 40 Vasse Highway, Bovell on the following terms and conditions: 1. Purchase price of up $850k (exclusive of GST) 2. Option binding on owner until 20 September 2015 3. Option to be exercised at the sole discretion of the City of Busselton 4. Payment of an ‘option fee’, to owner, of $5k (which will be part of purchase price if

option exercised by City, but non-refundable if City does not exercise option).

11.10am At this time the Director, Planning and Development Services, Manager, Strategic Planning and Development and the Community Development Coordinator left the meeting and did not return. Expenditure Items Councillor Bleechmore with the Committee and Chief Executive Officer, discussed his concern that expenditure items in the budget should be reviewed throughout the year. The Committee agreed that at future Finance Committee meetings, Councillors wished to identify and review expenditure items and whole of life costing.

8. NEXT MEETING DATE

Thursday, 2 July 2015


9. CLOSURE

The meeting closed at 11.25am.

THESE MINUTES CONSISTING OF PAGES 1 TO 31 WERE CONFIRMED AS A TRUE AND

CORRECT RECORD ON THURSDAY, 2 JULY 2015.

DATE:_________________ PRESIDING MEMBER: _________________________

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