Ordinary Council - Shire of Augusta–Margaret River · 2015. 2. 26. · SHIRE OF AUGUSTA MARGARET...

Ordinary Council

MINUTES

FOR THE MEETING HELD WEDNESDAY, 25 FEBRUARY 2015

IN COUNCIL CHAMBERS, WALLCLIFFE ROAD, MARGARET RIVER

COMMENCING AT 5:30PM

SHIRE OF AUGUSTA MARGARET RIVER ORDINARY COUNCIL MEETING 25 FEBRUARY 2015

2

Meeting Notice

Dear Councillor I advise that an Ordinary Council Meeting of the Shire of Augusta Margaret River will be held in Council Chambers, 41 Wallcliffe Road, Margaret River, on Wednesday 25 February 2015, commencing at 5:30pm. Yours faithfully

GARY EVERSHED CHIEF EXECUTIVE OFFICER


3

ATTENTION/DISCLAIMER

These minutes will be confirmed at the next Ordinary Council Meeting. The minutes should be read to ascertain the decision of the Council. In certain circumstances members of the public are not entitled to inspect material, which in the opinion of the Chief Executive Officer is confidential, and relates to a meeting or a part of a meeting that is likely to be closed to members of the public. No responsibility whatsoever is implied or accepted by the Shire of Augusta-Margaret River for any act, omission, statement or intimation occurring during Council or Committee meetings. The Shire of Augusta-Margaret River disclaims any liability for any loss whatsoever and howsoever caused arising out of reliance by any person or legal entity on any such act, omission or statement of intimation occurring during Council or Committee meetings. Any person or legal entity who acts or fails to act in reliance upon any statement, act or omission made in a Council or Committee meeting does so at that person’s or legal entity’s own risk. In particular and without derogating in any way from the broad disclaimer above, in any discussion regarding any planning application or application for a licence, any statement or intimation of approval made by any member or Officer of the Shire of Augusta-Margaret River during the course of any meeting is not intended to be and is not taken as notice of approval from the Shire of Augusta-Margaret River. The Shire of Augusta-Margaret River advises that anyone who has any application lodged with the Shire of Augusta-Margaret River must obtain and should only rely on WRITTEN CONFIRMATION of the outcome of the application and any conditions attaching to the decision made by the Shire of Augusta-Margaret River in respect of the application. The Shire of Augusta-Margaret River advises that any plans or documents contained within these minutes may be subject to copyright law provisions (Copyright Act 1968, as amended) and that the express permission of the copyright owner(s) should be sought prior to their reproduction. It should be noted that Copyright owners are entitled to take legal action against any persons who infringe their copyright. A reproduction of material that is protected by copyright may represent a copyright infringement.


4

TABLE OF CONTENTS

ITEM NO. SUBJECT PAGE NO.

1. DECLARATION OF OPENING ............................................................................................ 5

2. ATTENDANCE...................................................................................................................... 5 2.1. APOLOGIES ......................................................................................................................... 5 2.2. APPROVED LEAVE OF ABSENCE ..................................................................................... 5

3. DISCLOSURES OF INTEREST ........................................................................................... 5

4. PUBLIC QUESTIONS ........................................................................................................... 6

4.1. RESPONSE TO PREVIOUS PUBLIC QUESTIONS TAKEN ON NOTICE ......................... 6

4.2. PUBLIC QUESTION TIME ................................................................................................... 6 4.2.1 WATER FLUORIDATION – MR DAVID CHICK ................................................................... 6

5. APPLICATIONS FOR LEAVE OF ABSENCE ..................................................................... 6 5.1. CR MICHAEL SMART – 11 MARCH 2015 ........................................................................... 6

6. CONFIRMATION OF MINUTES OF PREVIOUS MEETING ................................................ 6 6.1 ORDINARY COUNCIL MEETING HELD 11 FEBRUARY 2015 ........................................... 6

7. DEPUTATIONS .................................................................................................................... 7

8. PETITIONS ........................................................................................................................... 7

9. ANNOUCEMENTS FROM THE PRESIDING MEMBER ..................................................... 7

10. QUESTIONS OF WHICH DUE NOTICE HAS BEEN GIVEN .............................................. 7 10.1 RENDALL WEIR WATER QUALITY – CR MICHAEL SMART ............................................. 7

11. REPORTS OF COMMITTEES AND EMPLOYEE REPORTS ............................................. 7

11.1. CHIEF EXECUTIVE OFFICER ............................................................................................. 9

11.2. SUSTAINABLE DEVELOPMENT ...................................................................................... 11 11.2.1 AMENDMENT NO. 33 FOR INITIATION - LOTS 2 AND 3 WEST BAY CREEK

ROAD, AUGUSTA .............................................................................................................. 11 11.2.2 SUBDIVISION OF RIVERSLEA STAGE 8 - SUMMARY OF PLANNING

HISTORY ............................................................................................................................ 17

11.3. INFRASTRUCTURE SERVICES ........................................................................................ 24 11.3.1 RENAMING OF BUSSELL HWY IN MARGARET RIVER .................................................. 24

11.4. CORPORATE AND COMMUNITY SERVICES .................................................................. 29 11.4.1 2014-15 BUDGET REVIEW ................................................................................................ 29 11.4.2 FINANCIAL ACTIVITY STATEMENT REPORT - JANUARY 2015 .................................... 38 11.4.3 LIST OF PAYMENTS FOR JANUARY 2015 ...................................................................... 47 11.4.4 SPORTS AND RECREATION ADVISORY COMMITTEE MEETING MINUTES 4

FEBRUARY 2015 ................................................................................................................ 50

12. MOTIONS OF WHICH PREVIOUS NOTICE HAS BEEN GIVEN ...................................... 53

13. MOTIONS FOR CONSIDERATION AT NEXT MEETING ................................................. 53

14. NEW BUSINESS OF AN URGENT NATURE .................................................................... 53 14.1. MEMBERS .......................................................................................................................... 53 14.2. CEO ..................................................................................................................................... 53

15. CONFIDENTIAL BUSINESS .............................................................................................. 53

16. CLOSURE OF MEETING ................................................................................................... 53


5

Ordinary Council Meeting Minutes of the Ordinary Council Meeting held on Wednesday 25 February 2015, in Council

Chambers, 41 Wallcliffe Rd, Margaret River, commencing at 5.30pm.

1. DECLARATION OF OPENING

The Shire President welcomed all in attendance and declared the meeting open at 5.31pm.

2. ATTENDANCE

Shire President : Cr Mike Smart Leeuwin Ward Councillors : Cr Kim Hastie Leeuwin Ward

Cr Ian Earl North Ward Cr Kylie Kennaugh North Ward Cr Felicity Haynes Town Ward

Chief Executive Officer : Mr Gary Evershed Director Corporate and Community Services : Ms Annie Riordan Director Infrastructure : Mr Johan Louw Director Sustainable Development : Mr Iliya Hastings Manager Planning and Development : Mr Nick Logan Minute Secretary : Ms Zoe Cunningham

MEMBERS OF THE PUBLIC 2 MEMBERS OF THE PRESS Augusta Margaret River Mail : Ms Amy Mckie Augusta Margaret River Times : Mr Warren Hately

2.1. Apologies

Cr Neville Veitch, Town Ward

2.2. Approved Leave of Absence

Cr Lyn Serventy, North Ward

3. DISCLOSURES OF INTEREST

Nil


6

4. PUBLIC QUESTIONS

4.1. Response to Previous Public Questions Taken on Notice

Nil

4.2. Public Question Time

4.2.1 Water Fluoridation – Mr David Chick

Before the meeting, Mr David Chick of Margaret River emailed Council the following questions: Is our town water fluoridated? What date was this implemented? What is the ppm dose rate? What was the cost of establishing the fluoridation facility? Who paid for the facility? What will be the ongoing costs, including purchasing the Hexauorosilicic acid and delivery from CSBP Kwinana, power, management, maintenance and repair? Who will pay these costs? How were the stakeholders (town folk) were informed of this implementation? Who signed the order to instigate this implementation? Please supply name, address and title. Did anyone who had anything to do with this look at the peer reviewed scientific evidence that swallowing fluoride causes harmful effects on the body including bone strength, thyroid issues and brain development in children? Are the councillors aware that since 1990 over 280 communities around the world have rejected water fluoridation and are now Fluoride Free? Although Mr Chick could not make it to the meeting, the CEO provided the following response: The Shire of Augusta Margaret River is not responsible for the fluoridisation of the Town’s water supply, which is managed by the Water Corporation. The Shire therefore respectfully requests Mr Chick to pursue these questions with the Minister for Water or local State Government members of Parliament.

5. APPLICATIONS FOR LEAVE OF ABSENCE

5.1. Cr Michael Smart – 11 March 2015

Cr Michael Smart requested leave of absence from the 11 March 2015 Ordinary meeting so that he could attend the Australian Coastal Councils Conference. MOTION / COUNCIL DECISION

CR SMART, CR EARL OM2015/26 That Council grants Cr Michael Smart leave of absence from the 11 March 2015 Ordinary Meeting of Council so that he may attend the Australian Coastal Councils Conference.

CARRIED 5/0

6. CONFIRMATION OF MINUTES OF PREVIOUS MEETING

6.1 Ordinary Council Meeting held 11 February 2015

MOTION / COUNCIL DECISION

CR EARL, CR HASTIE OM2015/27 That Council confirms the minutes of the Ordinary Council Meeting held 11 February 2015 to be a true and correct record of the meeting.

CARRIED 5/0


7

7. DEPUTATIONS

Nil

8. PETITIONS

Nil

9. ANNOUCEMENTS FROM THE PRESIDING MEMBER

Nil

10. QUESTIONS OF WHICH DUE NOTICE HAS BEEN GIVEN

10.1 Rendall Weir Water Quality – Cr Michael Smart

At Item 11.3.1 Rendall Close Weir - Water Trampoline Trial of the 11 February 2015 Ordinary Meeting of Council, Cr Michael Smart asked the Director Infrastructure, Mr Johan Louw, about the outcome of water quality tests carried out in the past two years at the site of the weir. The Director took the question on notice in order to provide the Councillor with a detailed response to the question. The Director’s response is outlined below: Water quality, in terms of bacteriology at the time of sampling, is well within the parameters set by the National Health and Medical Research Council (NHMRC) – i.e. it is suitable to swim in. Sample data at this stage is insufficient to provide a reliable (long term) profile of the location. There is always the chance of high results due to rainfall runoff and animal impacts. It is always safe practice not to ingest ‘natural’ waters.

Sample date Confirmed Enterococci (MPN/100mL)

24 Nov 2014 <10

15 Dec 2014 <10

6 Jan 2015 <10

21 Jan 2015 10

3 Feb 2015 <10

17 Feb 2015 <10

(There is no record of testing prior to 24 November 2014 – these samples were taken as a precautionary measure prior to the installation of the water trampoline). Guidelines for Managing Risks in Recreational Waters – National Health and Medical Research Council (NHMRC): Table 5.9 Suitability of different organisms as regulatory parameters for assessing faecal pollution (p75) states: "Enterococci - Currently considered the most suitable indicator for both marine and fresh water." Table 5.13 Classification matrix for faecal pollution of recreational water environments - acceptable range is <500 MPN/100mL.

11. REPORTS OF COMMITTEES AND EMPLOYEE REPORTS


8

11.1 Chief Executive Officer


9

11.1. CHIEF EXECUTIVE OFFICER Nil


10

11.2 Sustainable Development


11

11.2. SUSTAINABLE DEVELOPMENT 11.2.1 AMENDMENT NO. 33 FOR INITIATION - LOTS 2 AND 3 WEST BAY CREEK ROAD,

AUGUSTA

LOCATION/ADDRESS Lots 2 and 3 West Bay Creek, Augusta APPLICANT/LANDOWNER Halsall & Associates Town Planning Consultants / W, M, K and T

Hadley FILE REFERENCE LND/1/33 REPORT AUTHOR Matt Cuthbert, Strategic Project Officer AUTHORISING OFFICER Iliya Hastings, Director Sustainable Development

IN BRIEF

The proposal seeks to amend the zoning of two existing and adjoining ‘rural residential’ lots, in order to facilitate their future subdivision into smaller (1ha) lots.

The proposal is put forward primarily on the basis that each existing lot currently contains 2 dwellings and subdivision would allow all 4 dwellings to be located upon their own green title lot.

Given that development upon the proposed lots exists, the proposal is unlikely to generate any discernible impacts.

Some minor modifications to the proposal are required prior to advertising.

RECOMMENDATION That Council: 1. Pursuant to the Planning and Development Act, 2005 (as amended), and Part 17 (2) of the Town

Planning Regulations (1967), initiates Amendment No. 33 to Local Planning Scheme No. 1 for the purpose of including special provisions at Schedule 11 relating to lots 2 and 3 West Bay Creek Road Augusta; and

2. Determines that the proposed Detailed Area Plan be advertised subject to a minor modification.

SITE AND SURROUNDS The subject land consists of two lots (Lots 2 and 3) which are both 3.603ha in size. The land is located on the eastern side of Bussell Highway at the northern entrance to the town of Augusta. Lot 3 has frontage to both Bussell Highway and West Bay Creek Road, whilst Lot 2 is separated from the highway by a Crown reserve. The West Bay Creek traverses the site flowing in a south easterly direction towards the nearby Blackwood River. Surrounding land is zoned ‘Rural Residential’ and consists of lots which vary in size between 3 and 6ha.


12

Figure 1 – Location Plan TABLED ITEMS Amendment documentation – Halsall and Associates December 2014. BACKGROUND Building licences for each of the 4 dwellings which exist on the subject land were issued by the Shire and the houses constructed between 1978 and 1988. THE PROPOSAL The proposal consists of two elements being:

Inclusion of the subject property details at Schedule 11 – ‘Special Provisions Relating To Development on Land Zoned Rural-Residential Zone’ of LPS1 which will provide the statutory basis for the further subdivision of the lots, subject to the preparation of a suitable Detailed Area Plan (DAP); and

A DAP which demonstrates how each of the subject lots could be divided into two 1.8ha lots. The submitted DAP can be found at Attachment 1. It proposes that Lot 3 be subdivided to allow the existing dwellings to continue to utilise their access points from Bussell Highway (Lot 31) and West Bay Creek Road (Lot 32). Lot 2 is to be subdivided so that both lots access from a single crossover to West Bay Creek Road. An existing access point to Bussell Highway will be closed with the exception of emergency access/egress. PLANNING FRAMEWORK LPS1 The subject land is zoned ‘Rural Residential. Clause 4.22.1(b) requires a minimum lot size of 3ha. However clause 4.22 states: In the event of any conflict between the provisions of clause 4.21 and the site-specific provisions of Schedule 11, the provisions of Schedule 11 shall prevail. As such, reference to an alternative lot size in Schedule 11, provides for the creation of lots smaller than 3ha. Local Planning Strategy Councils’ adopted position with respect to proposals to re-subdivide rural residential land takes the form of a proposed amendment to the Shire’s Local Planning Strategy. Locational and subdivisional criteria are to be added to the LPS as follows: Locational Criteria The re-subdivision of areas which display any of the following attributes are unlikely to be supported:

Subject Land


13

Significantly vegetated – subdivision of densely vegetated land would result in an undesirable environmental outcome, would likely put future residents at higher risk of bushfire, and have greater potential to be inconsistent with the environment and landscape provisions of the LNRSPP.

Located in areas which have an extreme fire risk and/or have poor fire management characteristics.

Located along Caves Road – Caves Road is identified as a travel route corridor by the LNRSPP wherein development should be sited so as to be inevident from the road. Subdivision would result in additional development and thus a greater potential for adverse visual impact.

Located in an identified Environmental Corridor (LPS) or National Park Influence Area.

Located in areas which have been developed around the maximisation of views, where additional development would impact upon such views and landscape character

Isolated from all other lots having potential for subdivision (i.e. - would commence rather than complete a pattern of subdivision inconsistent with the character of the locality).

Not easily accessible, for example – no direct road frontage, located at end of long cul de sac, etc.

Subdivision Criteria Once an area has been determined to be suitable for re-subdivision (refer to locational criteria for guidance) proposals should be required to meet the following criteria:

Subdivision at a ratio of less than 1ha (average) will not be supported.

Lots of not less than 4000m2 may be considered where a clustered subdivision approach is appropriate notwithstanding that the 1ha average lot size will still need to be met.

Rezoning and structure planning necessary to support subdivision should be undertaken on a precinct (rather than lot by lot) basis unless completing a pattern of subdivision.

Subdividers will be required to contribute to the proportional upgrade of infrastructure necessary to adequately service the intended additional population.

Opportunities for re-subdivision should seek to provide enhanced environmental outcomes.

A bushfire hazard assessment and Bushfire Management Plan is to be prepared and implemented at the time of subdivision.

DISCUSSION / OFFICER COMMENTS Compliance with LPS Under normal circumstances, the location of the subject land would not meet with the locational criteria of the LPS. However, in this case the existence of the 4 dwellings dictates that subdivision will serve only to allow for rationalisation of ownership rather than the introduction of additional development entitlements. In respect to the subdivision criteria, all lots meet the 1ha minimum lot size. A Bushfire Management Plan (BMP) has been prepared which confirms that with the implementation of bush fire hazard and bushfire separation zones, the bush fire attack level to which the existing dwellings are subject to will be reduced from FZ to BAL-29, which is a lower and acceptable level of risk. The standard for construction of dwellings will not however be retrospectively applied as a consequence of future subdivision. Areas of vegetation within 20m either side of the West Bay Creek do not require modification to achieve improved fire safety based on the recommendations of the FMP.


14

Figure 2 – Fire Management Plan Minor Modifications Minor modifications to the DAP and proposed Scheme text are required prior to advertising. The WAPC has requested that DAP’s now be referred to as Local Development Plans (LDP) and the Shire’s second Omnibus amendment, which is likely to be gazetted in the near future, makes the appropriate change to all current references to DAP’s. The proposed DAP should be retitled ‘LDP’ accordingly. The proposed Scheme text stipulates a minimum lot size of 1ha. Whilst the proposed LDP clearly shows a maximum of 4 lots, it would be appropriate to replace reference to a minimum lot size with a maximum lot yield (4), to limit further subdivision beyond that shown on the DAP. CONSULTATION AND ADVICE Should this proposal be initiated by Council, detailed consultation would be required in accordance with the requirements of the Town Planning Regulations (1967). FINANCIAL IMPLICATIONS Nil STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2033 (CSP) Corporate Business Plan 2014-2018 Goal 3: Managing Growth Sustainably Community Outcome: Clearly defined areas for growth and renewal Strategic Response: Implement Local Planning Scheme No. 1 (LPS1) Service level strategy/plan: Provide Planning Services


15

SUSTAINABILITY IMPLICATIONS Environmental Clearing to increase fire protection to the existing dwellings will be balanced against environmental requirements by leaving an area 20m either side of the West Bay Creek unmodified. Social The proposal provides the opportunity to separate the ownership of the four dwellings amongst the 4 owners of the land in an equitable way. Economic The subdivider will be responsible for the provision of the necessary infrastructure to the newly created lots, and has paid a fee for the processing of the amendment. VOTING REQUIREMENTS Simple Majority RECOMMENDATION 1. That Council pursuant to the Planning and Development Act, 2005 (as amended), and Part 17

(2) of the Town Planning Regulations (1967), initiates Amendment No. 33 to Local Planning Scheme No. 1 for the purpose of: a) Amending the Scheme maps by identifying lots 2 and 3 West Bay Creek Road Augusta,

within rural residential area RR33; and b) Modifying ‘Schedule 11 - Special provisions relating to development on land zoned `Rural

Residential zone’ by including the following schedule:

Scheme Map Ref No. Site Description Specific Conditions and Requirements

R-R 33 Lots 2 and 3 West Bay Creek Road, Augusta

1. Subdivision and development shall be generally in accordance with the adopted Local Development Plan for the land;

2. The maximum lot yield shall be 4 lots.

2. Determines that the Detailed Area Plan dated November 2014, be advertised subject to the plan

being retitled ‘Local Development Plan’. ADVICE TO APPLICANT / PROPONENT Nil ATTACHMENTS 1. Proposed Local Development Plan RECOMMENDATION / COUNCIL DECISION

CR HASTIE, CR KENNAUGH OM2015/28 1. That Council pursuant to the Planning and Development Act, 2005 (as amended), and Part

17 (2) of the Town Planning Regulations (1967), initiates Amendment No. 33 to Local Planning Scheme No. 1 for the purpose of: a) Amending the Scheme maps by identifying lots 2 and 3 West Bay Creek Road

Augusta, within rural residential area RR33; and b) Modifying ‘Schedule 11 - Special provisions relating to development on land zoned

`Rural Residential zone’ by including the following schedule:


16

Scheme Map Ref No. Site Description Specific Conditions and Requirements

R-R 33 Lots 2 and 3 West Bay Creek Road, Augusta

3. Subdivision and development shall be generally in accordance with the adopted Local Development Plan for the land;

4. The maximum lot yield shall be 4 lots.

2. Determines that the Detailed Area Plan dated November 2014, be advertised subject to the

plan being retitled ‘Local Development Plan’. CARRIED 5/0


17

11.2.2 SUBDIVISION OF RIVERSLEA STAGE 8 - SUMMARY OF PLANNING HISTORY

LOCATION/ADDRESS Lot 9516 Tingle Avenue, Margaret River APPLICANT/LANDOWNER Walsec Pty Ltd FILE REFERENCE PTY/9656 REPORT AUTHOR Nick Logan, Manager Planning and Development AUTHORISING OFFICER Iliya Hastings, Director Sustainable Development

IN BRIEF

The recent commencement of subdivisional works at Lot 9516 Tingle Avenue, Margaret River resulted in the clearing of around 5ha of remnant vegetation at the ‘Riverslea’ subdivision in the Margaret River townsite.

As a result of community concerns around the clearing of this land the Council requested a report be prepared detailing the history of this subdivision.

This report details the history of rezoning, structure planning and subdivision of Lot 9516. RECOMMENDATION That Council notes the history of the approval for subdivision of Lot 9516 Tingle Avenue, Margaret River.

BACKGROUND In late January 2015, the owner of Lot 9516 Tingle Avenue, Margaret River, commenced subdivisional works for that land. Known as ‘Stage 8’ of Riverslea, the initial stage of these works involved clearing of around 5ha of native vegetation within the Riverslea subdivision. Lot 9516 is adjacent to existing residential development and Reserve 48892 which contains the Darch Brook, first order tributaries and associated riparian vegetation. The location of Lot 9516 is shown in Figure 1 below.

Figure 1 - Location of Lot 9516 Tingle Ave, Margaret River


18

Following a number of queries, raised by way of public questions at the Ordinary Meeting of Council on 28 January, 2015, the Council resolved as a matter of urgent business: That the CEO prepares a report to Council outlining the objections made by Council to the Western Australian Planning Commission in 2002, with regards to the clearing of the Riverslea Bushland in the Structure Plan. The reasons for this motion were described as it being: …important for the community to know how the process of rezoning, structure planning and subdivision takes place; what the role of the Council is in this process and what factors they can influence; and also, the part that the community can play and how they can affect the outcome. The background to the current works being undertaken includes:

Rezoning and structure planning of the land to enable subdivision/development;

Various subdivision approvals;

Formal environmental assessment by the EPA; and

A process of implementing subdivisional works. Rezoning and Structure Planning The history of introducing the potential for subdivision/development of Lot 9516 is long and convoluted. The structure planning process in particular is complicated by various versions of a structure plan for Riverslea (and other areas) being progressed but not finalised. As a broad overview, this process was:

The land (originally part of Sussex Locations 2141, 2142 and Pt 2151) was rezoned ‘Future Development’ with the introduction of Town Planning Scheme No. 17, which was advertised in the late 1980’s and gazetted 9 August 1991.

Zoning of this broader East Margaret River area followed identification in the Shire’s Rural Strategy of this land as the area that would accommodate demand for growth in the medium term. A preliminary, non-statutory version of a Structure Plan also existed for the area.

With the introduction of TPS17, specific requirements were incorporated in the zoning of this land for subdivision and development to be preceded by a Structure Plan. A Structure Plan for the area was progressed by landowners at the time in 1995, which identified subdivision of the area including what is now Lot 9516. This Structure Plan was subject to community consultation, however, it was never finalised. The Council resolved in September 1995 not to progress the Structure Plan due to unresolved issues, principally the future alignment of the Perimeter Road and issues associated with increased traffic on the local road network, and also a broad range of development issues including impacts on vegetation.

In the following years, various stages of subdivision were progressively approved by the precursors to the Department of Planning to satisfy demand for new residential lots.

A revised ‘Outline Development Plan’ (Structure Plan) was then submitted in 1998 but not progressed. A further revised ODP was submitted in 2000 and advertised February/March 2000. In June of 2000, the Council resolved to endorse a limited section of what was essentially the ODP for Riverslea. This resolution provided for only 90 lots within the ODP area to be subdivided/developed pending a broader review of the ODP and the preparation of a structure plan for the entire East Margaret River area. This 90 lot area excluded the vegetation in question. The restricted level of development endorsed by the Council at the time was to provide an interim lot supply.

The ODP was then forwarded to the DoP/WAPC, as required by the provisions of TPS17. The DoP/WAPC endorsed the entire ODP for Riverslea (including Lot 9516) on 18 August 2000. In March 2002 the Council sought legal advice and was compelled to endorse the ODP following WAPC endorsement (OM02/03 09). In so doing, the Council noted that endorsement was only on the basis of a review of the ODP through the then imminent East Margaret River Structure Plan process.

Various factors, most notably subdivision approval being granted for the Lot 9516 area in 2002 (WAPC: 118799) and the impacts on vegetation being assessed through the EPA assessment of environmental impacts, resulted in the ODP being fully incorporated within the East Margaret River Structure Plan. In 2002 subdivision/development under WAPC: 118799 was subject to formal referral to the EPA.

Subdivision Approvals A number of subdivision approvals were granted for land in Riverslea despite the absence of an endorsed ODP. The Shire consistently objected to these subdivision approvals in the absence of an


19

endorsed ODP, however approvals were issued by the DoP. There is some commentary around these approvals that the basis of approval was that there was a need to satisfy demand in the short term, and that an ODP needed to be finalised. The history of these various approvals is complex as in some instances they have overlapping boundaries - where lots haven’t been created under a previous approval and then have been pursued through a separate, later approval. The net result is that subdivision approval was issued for the majority of Lot 9516 under WAPC: 118799 in 2002. WAPC:118799 was subsequently partly implemented through the creation of some of the lots proposed under the approval. Further subdivision approval for the land was then granted in 2007 (WAPC: 132019) with an amended plan approved September 2008. Approval was issued again in 2010 (WAPC: 143216), and finally again in 2014 (WAPC: 150251). WAPC: 150251 is the current approval being acted on by the landowner, and a copy of the approved plan is included as Attachment 1. Formal Environmental Assessment The 2002 referral of subdivision/development under WAPC: 118799 was undertaken by the Leeuwin Conservation Group, under s38 of the Environmental Protection Act. The EPA then undertook an assessment of the proposal through a public environmental review. This review was concluded in 2006, with the EPA releasing a Ministerial Approval Statement for the proposal on 30 March 2007

1.

This approval statement contained a number of conditions, including that the approval would lapse within five years if works weren’t substantially commenced. The public environmental review process included a public submission period, with around 80 public submissions and 8 government agency submissions. The Shire made a submission to this process raising a number of concerns with the proposal. The 2007 Ministerial Approval Statement resulted in some redesign of the subdivision proposed under WAPC: 118799 including retention of greater areas of vegetation incorporated within increased setbacks to adjacent watercourses, and an increase in the extent of future reserve/public open space protecting these areas. The Ministerial Approval Statement also contained a number of further conditions. Compliance with these conditions is a matter for the landowner and the EPA when implementing the proposal, however, the Shire has sought to ensure the decisions made through implementation of subdivision are consistent with this approval. Prior to works commencing the Shire also sought confirmation of the validity of actions under the EPA Ministerial approval, in that previous works undertaken met the test of ‘substantial commencement’ of works permitted, thereby ensuring the EPA approval was still considered by the EPA to be valid. The EPA approval was to lapse if works weren’t substantially commenced in five years from the approval date. In addition to the EPA assessment, the landowner has obtained advice from the Federal Government that implementation of the proposal isn’t a ‘controlled action’ under the Environmental Protection and Biodiversity Conservation Act. Implementation of Subdivisional Works Some progress was made towards implementation of previous subdivision approvals, including preparation of supporting information in 2007. The landowner again commenced preparation of supporting information in 2014, and elected to commence subdivisional works in January 2015. Through the assessment of construction drawings and supporting information for the subdivision, the Shire required that the landowner notify surrounding residents that works were due to commence. Several queries have been raised around plans that are required to support the subdivision of Lot 9516. In essence, the nature of this supporting information (urban water management plans, fire management plan etc) changed from 2007 through preparation of supporting information for the 2014 approval under WAPC: 150251. This supporting information isn’t authority to clear vegetation however, as that substantive decision is made by zoning, the ODP and the formal environmental approvals to subdivision/development of the land.

1 The Ministerial Approval Statement can be downloaded from:

http://www.epa.wa.gov.au/peia/approvalstatements/Pages/0739_0739-RiversleaResidentialSubdivision-Sussex.aspx

http://www.epa.wa.gov.au/peia/approvalstatements/Pages/0739_0739-RiversleaResidentialSubdivision-Sussex.aspx


20

CONSULTATION AND ADVICE In relation to identification of the potential for subdivision/development of the land, consultation was undertaken through the process of:

Modification of the zoning of land and the introduction of Town Planning Scheme No. 17 in 1991.

The initial version of the Riverslea Outline Development Plan in 1995.

The revised Riverslea Outline Development Plan in 2000.

Specifically in relation to land clearing through the EPA public environmental review process. A number of queries raised have related to a lack of further consultation through subdivision approvals being granted and acted upon. With respect to the subdivision process, subdivisions are assessed and determined by the DoP/WAPC. Through this process the DoP undertakes consultation with the Shire, but doesn’t undertake wider community consultation as the earlier rezoning and structure planning processes are the methods to fully evaluate whether land is suitable for subdivision and how subdivision is to occur. Legislation guiding the subdivision process that the DoP is acting under doesn’t direct or enable wider consultation in the subdivision process (s142 of the Planning and Development Act). With respect to notification that subdivisional works are to occur, the Shire required the developer to notify surrounding residents that works were due to commence. This notification is required by the Shire when aware that works are due to commence. In this instance, the developer notified surrounding residents immediately prior to works commencing. In general the timing or actual progress of works can be influenced by a range of factors, such as a particular developer’s financial situation, the availability of contractors or market conditions. For these and other reasons, many subdivision approvals granted and further, assessed construction drawings are either not acted on or delayed and the Shire requires the developer to notify residents when they are to proceed, and ensures this is done through a pre-start meeting with a particular developer. DISCUSSION / OFFICER COMMENTS In general terms, the Shire’s Local Planning Strategy and current approaches to planning for future growth ensure retention and enhancement of native vegetation. In addition, in the last few years the Shire has introduced specific measures to incentivise protection and enhancement of vegetation, including:

The Shire’s subdivision for conservation policy, where significant areas of vegetation are protected by covenant; and

The stewardship and grants program, where the Shire supports planning and implementation of conservation works.

The Shire is currently preparing a broad high level Structure Plan for the eastern future growth areas of Margaret River which will be advertised in the coming months. This plan will set a framework for future development of the Margaret River townsite, and will outline the protection of all significant vegetation in those areas which future detailed structure plans will need to reflect. It is at this strategic point in the planning process where it is most effective for community participation into the form of future subdivision and development. As discussed, the relevant planning framework and legislation doesn’t enable consultation at the subdivision stage. The Shire makes all information regarding development potential public and endeavours to make this information as accessible as possible, this is done by:

Funding a public mapping service available through the Shire’s website. All zoning and Local Planning Scheme No. 1 information is on the Shire’s website.

Maintains a customer service function for planning staff whereby a dedicated staff member is available during working hours to respond to customer enquiries and speak to customers about planning matters.

Undertaking public consultation on all changes in zoning and structure plans. All changes in zoning are made by a decision at a formal Council meeting where that decision making process and ability to participate by way of questions/deputations is available.

STATUTORY ENVIRONMENT / LEGAL IMPLICATIONS The implementation of subdivision development is influenced by the following legislation:


21

Planning and Development Act (2005 - WA) – which sets the process for subdivision, and the requirements for making schemes. The Town Planning Regulations given effect by the Planning and Development Act sets out the process for modifying zoning.

Environmental Protection Act (1986 - WA) – is the primary environmental legislation for matters of state significance, setting the process for formal environmental review of such matters.

Environmental Protection and Biodiversity Conservation Act (1999 – Cth) – is the primary environmental legislation for matters of national significance, providing for control over actions that may impact nationally significant environmental features.

Local Planning Scheme No. 1 – sets the zoning and development controls for land within the Shire.

STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2033 (CSP) Corporate Business Plan 2014-2018 Goal 3: Managing Growth Sustainably Community Outcome: Clearly Defined Areas for Growth and Renewal Strategic Response: Implement Local Planning Scheme No. 1 Service level strategy/plan: Provide Planning Services Goal 3: Managing Growth Sustainably Community Outcome 2: Liveable and Well-Designed Places Strategic Response 2.1: Develop and implement Masterplans for centres, towns and villages to preserve and enhance their unique character Service level strategy/plan 2.1.1: Finalise a structure plan for east Margaret River FINANCIAL IMPLICATIONS There are no direct financial implications arising from this report, which is essentially for information. SUSTAINABILITY IMPLICATIONS Environmental This report is for information purposes only. Social This report is for information purposes only. Economic This report is for information purposes only. VOTING REQUIREMENTS Simple Majority RECOMMENDATION That Council notes the history of the approval for subdivision of Lot 9516 Tingle Avenue, Margaret River. ATTACHMENTS 1. WAPC subdivision approval 150251. RECOMMENDATION

Cr Earl That Council notes the history of the approval for subdivision of Lot 9516 Tingle Avenue, Margaret River.

The mover of the motion, Cr Ian Earl, agreed to move the motion with a second point included, as

suggested by Cr Felicity Haynes.

AMENDMENT

That Council: 1. Notes the history of the approval for subdivision of Lot 9516 Tingle Avenue, Margaret River; AND


22

2. Reaffirms its support for the protection of key areas of remnant vegetation as a part of the planning and growth of the Shire’s settlements.

AMENDED MOTION / COUNCIL DECISION

CR EARL, CR HAYNES OM2015/29

That Council: 1. Notes the history of the approval for subdivision of Lot 9516 Tingle Avenue, Margaret

River; and 2. Reaffirms its support for the protection of key areas of remnant vegetation as a part of the

planning and growth of the Shire’s settlements. CARRIED 5/0

REASON: Cr Haynes suggested the addition to the officer’s recommendation as she wanted Council

to reinforce the sentiment that the Shire is mindful of the need to protect remnant bushland and

ensure sustainable development into the future.


23

11.3 Infrastructure services


24

11.3. INFRASTRUCTURE SERVICES 11.3.1 RENAMING OF BUSSELL HWY IN MARGARET RIVER

LOCATION/ADDRESS Margaret River Townsite APPLICANT/LANDOWNER Shire of Augusta Margaret River, Main Roads Western Australia

(Operating Account) FILE REFERENCE RDS/H43 REPORT AUTHOR David Nicholson, Manager Asset Services AUTHORISING OFFICER Johan Louw, Director Infrastructure Services

IN BRIEF

Main Roads WA (MRWA) has commenced construction of Stage 1 of the Margaret River Perimeter Road and is progressively acquiring land for future construction of Stage 2.

MRWA advised that they wanted to name the perimeter road as Bussell Highway, which would require changing the name of the existing section of Bussell Highway through Margaret River.

A preliminary list of possible new names was compiled after consultation with stakeholder groups and was forwarded to the Geographic Names Committee for comment. All suggested names were rejected.

Retaining the name of Bussell Highway for the existing road is therefore recommended, with a new name to be established for the Perimeter Road.

RECOMMENDATION That Council: 1. Retains the name Bussell Highway for the section of road that will be bypassed by the Margaret

River Perimeter Road. 2. Requests that Main Roads WA consult with the Shire regarding the naming of the Margaret River

Perimeter Road.

LOCATION PLAN

TABLED ITEMS Nil BACKGROUND Construction of Stage 1 of the Margaret River Perimeter Road commenced in late 2013. Main Roads WA advised that a name will be required for the new road prior to opening and MRWA has proposed that it be named Bussell Highway. The rationale for this request is that most of the highway route


25

from Bunbury to Augusta would have the same name (although it should be noted that on completion of the Busselton Bypass, the name Bussell Highway was retained for the section of highway between the Causeway and Caves Road in Busselton). If the Perimeter Road was to be named Bussell Highway, this means that the existing section of Bussell Highway (from just north of the DPaW compound to just south of near Rosa Brook Road, intersection) has to be renamed. New road names require the formal endorsement of Council and the Geographic Names Committee (GNC). This request provided an opportunity to create a new name for the existing main street, which is proposed to be significantly upgraded following completion of the Perimeter Road. It was recognised that the community should be invited to participate in the process of selection of a new name, including an option of retaining the existing name. To initiate this process, four stakeholder groups were invited to submit suggested names - Margaret River Chamber of Commerce & Industry (MRCCI), Augusta Margaret River Tourism Association (AMRTA), Margaret River & Districts Historical Society (MRDHS) and a representative of the traditional owners of the land (Wadandi people). The Shire’s Executive Leadership Team also suggested a name. Prompt responses were obtained from three of the four groups. The suggested names were:

Bussell Highway (ie retain existing name)

Old Bussell Highway

Margaret Street

Margaret River Road

River Road

Main Street

Whicher Road (surname of Margaret after whom the town was named)

Wooditchup Road (the aboriginal name for Margaret River) In their response, the MRCCI expressed concern that members were unlikely to support a change of name because this would cost them financially (ie changes to stationary, advertising, signs, etc) and will impact on their places in Google searches. An on-line survey was conducted and the majority of members that responded did not support a name change. AMRTA advised that it would prefer to survey its members, but staff made some suggestions in the interim. As naming of roads requires the approval of the GNC, the suggested names were referred to the GNC for advice prior to broad community consultation. The GNC’s response was that all of the suggested new names were unsuitable for the following reasons:

Old Bussell Highway - duplication

Margaret Street - duplication

Margaret River Road - double barrel name

River Road - duplication, overused within the state

Main Street - duplication, overused within the state

Whicher Road - duplication

Wooditchup Road - too similar to Wooditch The duplications were within the Shire and the adjoining City of Busselton. The GNC advised that “In seeking other names the Shire could choose from their list of reserve road names that are suitable for use. Alternatively the name Boojarah could be proposed. (The town of Margaret River is firmly situated in the South West Boojarah region in Noongar booja (country). Noongar have lived in this part of booja since the Nyittiny- creation times. (http://www.noongarculture.org.au/margaret-river/). A check in Geonoma found the name suitable. If the Shire are interested in applying the name Boojarah, local Elders and/or the South West Land and Sea Council would first need to be consulted.” CONSULTATION AND ADVICE External Consultation Main Roads WA, Margaret River Chamber of Commerce & Industry, Augusta Margaret River Tourism Association, Margaret River & District Historical Society, Geographic Names Committee. Internal Consultation Executive Leadership Team DISCUSSION / OFFICER COMMENTS

http://www.noongarculture.org.au/margaret-river/


26

In view of the GNC’s rejection of all of the suggested names and the opposition of the majority of MRCCI members to a change of name, the retention of the name Bussell Highway be recommended to Council. This means that MRWA will have to have to establish a name for the Perimeter Road. This should be done in consultation with Council. STATUTORY ENVIRONMENT / LEGAL IMPLICATIONS Renaming of roads is dealt with under Section 26 of the Land Administration Act 1997. Council must also follow the Geographic Roads Committee policies for re-naming streets. STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2033 (CSP) Corporate Business Plan 2014-2018 Goal 3 Vibrant and diverse economy Community Outcome Infrastructure for economic growth: Strategic Response: Assist Main Roads WA to progress development of the Margaret River Perimeter Road Service level strategy/plan: Margaret River Super town, Townsite Growth Plan PLANNING FRAMEWORK Not applicable – administrative matter. FINANCIAL IMPLICATIONS If the existing Bussell Highway was renamed, Council would have to bear the cost of changing street name signs and tourist information signs within the town centre. SUSTAINABILITY IMPLICATIONS Environmental Nil Social

Street name changes have significant ramifications for residents and visitors. Postal addresses, street maps, car navigational systems and delivery systems must be altered, causing a degree of confusion until people become accustomed to the new name.

Street names are often part of the cultural heritage of a location. Economic

Local business will need to change their stationary, signage and advertising as a result of a street name change.

Road maps, street maps, car navigational systems, etc will require amendment if the road name is changed.

VOTING REQUIREMENTS Simple majority RECOMMENDATION That Council: 1. Retains the name Bussell Highway for the section of road that will be bypassed by the Margaret

River Perimeter Road. 2. Requests that Main Roads WA consult with the Shire regarding the naming of the Margaret River

Perimeter Road. ADVICE TO APPLICANT / PROPONENT Main Roads WA, Geographic Names Committee, Margaret River & District Historical Society, Margaret River Chamber of Commerce & Industry and Augusta Margaret River Tourism Association to be advised of Councils’ decision. ATTACHMENTS Nil


27

RECOMMENDATION / COUNCIL DECISION

CR KENNAUGH, CR EARL OM2015/30 That Council: 1. Retains the name Bussell Highway for the section of road that will be bypassed by the

Margaret River Perimeter Road. 2. Requests that Main Roads WA consult with the Shire regarding the naming of the Margaret

River Perimeter Road. CARRIED 5/0


28

11.4 Corporate and Community

Services


29

11.4. CORPORATE AND COMMUNITY SERVICES 11.4.1 2014-15 BUDGET REVIEW

LOCATION/ADDRESS Shire of Augusta Margaret River APPLICANT/LANDOWNER Shire of Augusta Margaret River FILE REFERENCE FIN/14 REPORT AUTHOR Andrew Ross, Acting Director Corporate and Community Services AUTHORISING OFFICER Gary Evershed, Chief Executive Officer

IN BRIEF

Legislation requires that between 1 January and 31 March each year a local government is to carry out a review of its annual budget for the year.

The 2014-15 Budget review has resulted in the Shire’s net result improving from $0.828 million to $1.922 million.

The review identified increases to operating revenue of $2.451 million which more than offset operating expenditure increases of $1.436 million.

For many business units operating revenue increases and operating expenditure decreases have offset their total operating expenditure increases. However, the increase in the net result of $1.094 million is primarily attributable to payments of $0.979 million received through the WA Natural Disaster Relief and Recovery Arrangements (WANDRRA) for the storm events of July and September 2013. This expenditure was absorbed within the 2013-14 financial year without the matching income being recognised.

Capital expenditure is expected to be $0.329 million lower than expected due to the deferral of waste management works that are pending the receipt of approvals. This decrease has been offset by the inclusion of some urgent building renewal projects. These projects are to be funded from the increase in the Shire’s brought forward position for 2014-15 of $0.392 million.

Reserves have been increased by $2.454 million due to the transfer of expected unspent funds from the waste management area to the waste management reserve to provide for major expenditures in the future and the increase to the net result has been allocated to a number of reserves.

In summary the completed review has resulted in no change to the balanced budget position expected at 30 June 2015.

To comply with legislation a copy of this review and Council’s determination is to be provided to the Department of Local Government and Communities.

RECOMMENDATION That Council: 1. Receives the 2014-15 Budget review in accordance with regulation 33A of the Local Government

(Financial Management) Regulations 1996; 2. Adopts the results of the review and the budget adjustments contained in the Attachments; and 3. Provides one month’s local public notice in accordance with Section 6.11 of the Local

Government Act 1995 of the following changes to Reserve accounts:

Creation of the Old Settlement Reserve to allow funds received from the property’s lease to be reserved for the maintenance of the property.

Rename the Boranup Lime Pit Rehabilitation reserve to the Limesand Pits reserve to be used for the rehabilitation and development of the Boranup, Redgate and any other Shire limesand pits.

Rename the Redgate Lime Pit Rehabilitation reserve to the Gravel Pits reserve to be used for the rehabilitation and development of the Shire’s gravel and other related resource reserves.

LOCATION PLAN Nil


30

TABLED ITEMS Nil BACKGROUND In accordance with Regulation 33A of the Local Government (Financial Management) Regulations 1996 local governments are required to carry out a review of their annual budget after six months and Council is required to consider the results of this review. To undertake this review business unit managers were provided statements of their financial results at 31 December 2014 and were requested to review these results and note any adjustments to budgets which they believed to be materially significant. To ensure budget adjustments were of a material nature, adjustments greater than $5,000 were requested. A conservative approach to reviews was followed and the reason for the proposed budget adjustments was also recorded. Business units were also encouraged to find savings to offset any over expenditures. In order to determine the expected financial position at 30 June 2015, the budget review financial statements contain all actual expenditure and revenue to 31 December 2014, the proposed adjustments to accounts or jobs and the amended budget or forecast end of financial year balance. As the CEO has delegated authority to approve budget amendments up to $5,000, Council is requested to review and approve variations greater than $5,000. CONSULTATION AND ADVICE External Consultation Nil Internal Consultation Business Unit managers reviewed the financial results and Budget, provided amendments and reasons for the amendments. DISCUSSION / OFFICER COMMENTS The attached Business Unit Financial Report includes the Statement of Financial Activity which shows a summary by business unit, the balances of each reserve account and revenue and expenditure details by business unit. In summary, the Statement of Financial Activity shows the following proposed amendments:

Approved Budget Budget Amendment Amended Budget

Operating Revenue 28,154,864 2,451,367 30,606,231

Operating Expenditure (30,440,720) (1,435,706) (31,876,426)

Net Operating Surplus/(Deficit) (2,285,856) 1,015,661 (1,270,195)

Capital Grants & Contributions 3,113,674 78,845 3,192,519

Net Result 827,818 1,094,506 1,922,324

Capital Expenditure (11,643,554) 328,590 (11,314,964)

Transfers to Reserves (409,247) (2,454,444) (2,863,691)

Transfers from Reserves 3,171,287 0 3,171,287

Additionally, an improved closing position at 30 June 2014 (which became the opening position at 1 July 2014) was recorded compared to that included in the 2014-15 Budget. The budget forecast an opening position of $2,041,311 when the actual audited result was $2,433,267. This benefit of $391,956 allows the Shire to fund some urgent capital works and other expenditures which were not included in the 2014-15 Budget. Proposed budget amendments to operating revenue and operating expenditure budgets more than offset each other and allow for the increase in the net result to be transferred to reserves for future year’s expenditures. The main reasons for the increase in operating revenue of $2.451 million are:

WANDRRA payments and the recoup of expenditure for the Augusta Boat Harbour project which totalled $1.150 million;

Payments received for insurance claims of at least $0.150 million; and

Recognition of the value of gravel and other resource stockpiles of $0.661 million.


31

The main reasons for the increase in operating expenditure of $1.436 million are:

Cost of insurance claims of at least $0.150 million;

Recognition of the cost of crushing gravel and creating other resources of $0.368 million;

Increase in Private Works expenditure of $0.200 million; and

Increase in depreciation of $0.652 million due to the recognition of fair values for buildings. The main changes proposed to the capital works programme are:

Replacement of the Karate Club roof ($0.050 million) and Recreation Centre roof ($0.200 million) as both are in poor condition;

Stage 1 of a power upgrade to Gloucester Park ($0.040 million) in order to meet demand;

Inclusion of the Alexandra Bridge Bushfire Brigade light tanker ($0.117 million) which is fully funded by the Emergency Services Levy;

Deferral of the replacement of a mower/slasher ($0.045 million);

Purchase of grant funded equipment for Aquatic Centre of $0.018 million;

Review of road works projects to better reflect project cost and available funding resulted in a total increase to the overall road works program of $0.066 million; and

Deferral of waste management works totalling $0.637 million pending the approval of plans by the Department of Environmental Regulation.

The combination of expected savings in the Waste Services budget of $1.156 million, the recognition of the difference of $0.287 million between the cost of gravel extraction and its issue price and the 2013-14 WANDRRA payments of $0.979 million have allowed the Shire’s reserves to be increased by $2.454 million. The Statement of Financial Activity forecasts the Shire should still record a break even result for 2014-15. The forecast end of year budget position is considered to be a worst case scenario based on information available at this time. However, it is likely the actual end of year position will be an improvement upon this forecasted result. The following are the major adjustments disclosed by business unit. Rates Total revenue is not expected to achieve budget despite an expected increase in interim rates as the calculation of back rates for 2 vacant land objections resulted in the refund of rates. A minor adjustment to the labour budget has offset part of the impact of the rates refund. General Purpose Funding Income is expected to increase by $27,000 due primarily to the lease of the old settlement not being included in the budget and the actual General Purpose Grant and Local Roads Grant from the WA Local Government Grants Commission being $8,000 higher than estimated. Higher bank fees offset part of this benefit. CEO The hosting of the Wildcat’s event in October 2014 resulted in some additional income being recorded which offset the costs of the event. The budget allocation for consultants has been increased by $2,500 to allow for a study to examine the flow on effects of arts spending on the tourism and cultural sectors. Director Corporate and Community Services The receipt of a risk insurance rebate has offset the expected cost of the risk management project. Additional contract services expenditure is expected to be incurred for Website survey software and the proposed restructure of the Directorate due to the Manager Customer and Information Services position not being replaced following the retirement of the present incumbent. Finance A higher than expected good driver rebate has increased operating revenue. Increased insurance premiums and audit fees are expected to be largely offset by savings in labour costs and special projects.


32

Customer and Information Services Possible savings in telephone and postage largely offset increases required to the budget for utilities. Customer Relations Increased activity for Department of Transport licencing transactions is likely to result in an additional $5,000 in commissions. Information and Communications Technology Additional expenditure is required for an upgraded back-up system and to include maintenance charges for an item whose warranty had expired. These increases were offset by a reduced depreciation allocation. Human Resources Revenue is $22,000 higher due to the LGIS member’s bonus. Savings in labour costs have resulted from the time taken to fill the Safety Officer vacancy. Community Development Revenue is lower as an application for $20,000 for AWARE funding for the Community Preparedness project was unsuccessful. This was offset by a successful grant application for $11,500 to the WA Police Crime Prevention Fund for CCTV equipment. Expenditure is also lower for the same reasons. Emergency Management Additional operating expenditure for the SES building will be funded by an increased Emergency Services Levy (ESL) operating grant. Cost of SES vehicles was lower than expected and therefore the matching capital grant was also lower. Insurance claims and a grant of $40,000 for the Bushfire Response Management Plan project have increased income for the fire prevention area. This income is matched by expenditure increases. The replacement of the Alexandra Bridge BFB Light Tanker was not carried over in the budget and has resulted in matching expenditure and income of $117,410 being incurred. Rangers Revenue from dog registrations, dog infringements and cemetery fees is expected to exceed budget by $27,000. The budget for vehicle operating expenses is to be increased by $20,000 to allow for increased maintenance expenses and the transfer of vehicle depreciation from the general depreciation account. $7,000 has also been included to purchase and install a fire control unit on a Ranger vehicle. Libraries Additional revenue streams such as WIFI printing and other charges of $5,000 have partly offset the likely increased cost of labour resulting from the use of more relief staff than expected. The revision of depreciation for buildings has resulted in an increase of $34,000. Health Services The budget for fees and charges revenue is to be increased by $6,000 due to an increase in applications. The depreciation budget is also to be removed as vehicle depreciation is included in vehicle operating costs. Child Care An unbudgeted grant of $14,680 was approved by Council in December and has resulted in grant income and various expenditure accounts increasing. Increased vacation care bookings are expected to result in increased revenue of $20,000. Waste Services Total operating expenditure is to be reduced by $374,000 as a result of a number of factors including savings in labour costs, reduced leasing costs arising from the delayed delivery of the Traxcavator, deferral of some projects, lower contractor costs for recycling and rubbish collection due to a lower number of bin lifts and the deferred licencing of Transfer Stations until volumes are known. This saving has been transferred to the Waste Management reserve.


33

Capital expenditure is expected to be $637,000 less than budget due to the short term deferral of projects pending the finalisation of the Waste Disposal Strategy and the approval of plans by the Department of Environmental Regulation (DER) for the progressive closure of Davis Road. As these works will be required in the future the savings in capital expenditure have been transferred to the Waste Management reserve. The transfer of expected unspent funds will result in the balance of the Waste Management reserve increasing to $3 million and improves the Shire’s ability to fund major waste management infrastructure works in the future. Revenue from recycling sales is expected to be $30,000 less than budget as steel prices have reduced by $50 per tonne. This loss of revenue has been offset by a $20,000 increase in sullage fees due to increased usage during the peak tourism season and an increase in commercial tipping revenue. Town Planning An increase in the number of town planning applications has resulted in an amendment of $36,000 to operating revenue. Developer contributions for the Witchcliffe Wastewater Treatment Review (WWTR) have also resulted in an increase in revenue. Savings in labour costs and the LEAP Actions Review which was completed in house, offset increased expenditure on sustainability initiatives and the WWTR. Community Buildings Payment of insurance claims for property damage has resulted in the revenue budget increasing by $150,000. This increase is matched by the expenditure to repair the damaged property. Additional maintenance and repairs for various buildings, an increased depreciation allocation of $140,000 and the possible refurbishment of the Augusta Squash courts ($50,000) require the operating expenditure budget to be increased by $383,000. Capital works are proposed to be increased by $295,000 and include urgent works required to replace the leaking roofs of the Karate Club building and the Margaret River Indoor Recreation Centre. The first stage to upgrade power to Gloucester Park is also required to meet demand. Although the redevelopment of the Cultural Centre is still in a planning stage and it is unlikely the expenditure and matching grants for this project will proceed this year, the budgets are not proposed to be altered as they offset each other. Indoor Sports Budgets are to be amended to allow for the grant and expenditure for Kidsport applications as well as increased building depreciation following the fair value revaluation of building assets. Aquatic Centre An unbudgeted grant for equipment that was approved by Council in December has increased revenue by $30,000 and is matched by expenditure. Building depreciation is expected to increase by $200,000. Group Fitness and Gym Increased usage of these facilities and services has resulted in an increase to the revenue budget of $30,000. Cultural Centre Depreciation has increased as a result of the increased valuation of the building and lower than anticipated electricity costs have reduced expenditure and the amount of the reimbursement from Arts Margaret River. Gloucester Park Depreciation has increased as a result of the increased building valuations.


34

Parks and Gardens It is expected the overall budget for this area should be achieved without any substantial amendments to individual projects and jobs. $20,000 has been included for renewal works for Memorial Park to prepare for ANZAC centenary events. Asset Services Increased subdivision activity and a grant for the Augusta Interpretation Study have resulted in increased revenue. Savings in labour costs due to a vacancy and reduced vehicle depreciation has resulted in operating expenditure being $60,000 lower than the approved budget. Construction The expected increase in the Roads to Recovery grant from $400,000 to $455,442 requires this budget item to be increased. The increased grant will fund rural reseal projects and has been supplemented by a $40,000 transfer from the Ellensbrook Road project which was completed under budget. Budgets for two drainage projects have been increased as one project was not carried over from 2013-14 and the other was underestimated. $40,000 of this expenditure has been funded from savings to the works depot lube bay and wash-down facilities. The construction of the John Archibald and Beech Drive intersection exceeded budget by $136,000 but will be funded by Mains Roads WA from the Perimeter Road grant of $1 million. Overall the road construction area is expected to only be $11,000 over budget. Maintenance Rectification of damage from the severe storm events in July and September 2013 incurred costs in the order of $1.4 million. The two events were natural disasters and eligible for WA Natural Disaster Relief and Recovery Arrangements (WANDRRA) funding from the State Government. However, in each case the Shire was responsible for the initial $147,000 of expenditure. WANDRRA claims totalling $979,323 were paid this financial year and have resulted in over budget revenue. Additionally, payments by the Department of Transport for Shire resources allocated to the Augusta Boat Harbour project have contributed to this over budget revenue but is offset by above budget expenditure for Private Works. Operating expenditure increases include increased gravel road maintenance of $50,000, bridge maintenance of $80,000 and the inclusion of a budget for the installation and replacement of street bins. These increases have been funded by the removal of the budget for survey and design costs as these costs are being booked directly to jobs. The increase in the depreciation allocation of $500,000 is a result of the revaluation of some infrastructure assets in 2013-14, specifically boatramps, jetties and airstrips. Plant Program An overall decrease of $45,000 is expected to the Plant Replacement Program as the budgeted replacement of a mower/slasher has been deferred to 2015-16. Caravan Parks Despite some minor amendments to various budget items the overall net result for this area is not expected to change from that of the approved budget. Amendments included increased income, water charges and repairs and maintenance for Turner Caravan Park, increase building maintenance and under budget road resurfacing for Flinders Caravan Park. Building Services Higher than expected building applications has resulted in revenue being increased by $20,000 and depreciation has been reduced as vehicle depreciation is included in vehicle operating costs. Public Works Overheads Superannuation and Workers Compensation were both under budget and it was identified superannuation for a number of staff was not being correctly allocated and the amount loaded for the workers compensation budget was incorrect. Adjustments are proposed to correct these errors and the amount of depreciation has also been adjusted. Overall the total adjustments required balanced to nil. It is also evident that overheads are being under recovered and the recovery rate has been increased accordingly.


35

Plant Operating Costs The recent drop in fuel costs has resulted in the expected fuel budget reducing by $80,000. However, this saving has been allocated to repairs and parts to meet the increased breakdown costs of heavy plant. The decrease in depreciable values of mobile plant has resulted in the depreciation budget being reduced by $100,000. Other Property and Services An adjustment has been made to reflect the budget impact of recognising stock values for gravel and grit. Operating revenue has been increased to recognise the notional value of these items to be issued as stock and operating expenditure increased to recognise the cost of creating these stockpiles. The difference of $286,634 has been transferred to reserves to provide for the future development of these resources. Reserves Some significant changes have been made to the Shire’s reserves in terms of their balances and their structure. All of the proposed transfers of surplus funds will not be completed until the end of the financial year, however the major adjustments are:

The Community Loan Reserve has been increased by $50,000 to provide an expected end of year balance of $97,000;

The Waste Management Reserve will be increased by $1,156,000 to provide an expected end of year balance of $3,031,000;

The Community Facility Reserve has been increased by $529,794 to provide an expected end of year balance of $1,937,000;

The Plant Reserve has been increased by $500,000 to provide an expected end of year balance of $1,132,000;

The Gravel Pits Reserve is to receive a transfer of $286,634 for an end of year balance of this amount;

The Old Settlement Reserve has been created to receive the transfer of lease income for this property in accordance with the management order.

Some structural changes are proposed to accommodate the above changes and in accordance with Section 6.11 of the Local Government Act 1995 changes to the purpose of a Reserve or a Reserve which was not included in the Annual Budget must first be advertised locally for 1 month. The changes requiring advertising are:

Creating the Old Settlement Reserve. The purpose of this reserve is for income obtained from the lease of the site is to be used for the maintenance of the site;

Changing the Boranup Lime Pit Rehabilitation Reserve to be more generic in nature by renaming it as the Limesand Pits reserve and transferring the balance from the Redgate Lime Pit Rehabilitation reserve to this reserve. The purpose of this reserve is to provide funds for the rehabilitation and development of the Boranup, Redgate and any other Shire limesand pits; and

Renaming the Redgate Lime Pit Rehabilitation Reserve to the Gravel Pits reserve. The purpose of the reserve is to provide funds for the rehabilitation and development of the Shire’s gravel and other related resource reserves.

STATUTORY ENVIRONMENT / LEGAL IMPLICATIONS Regulation 33A of the Local Government (Financial Management) Regulations 1996 specifies the following for the Review of the Budget. (1) Between 1 January and 31 March in each financial year a local government is to carry out a review of its annual budget for that year. (2A) The review of an annual budget for a financial year must — (a) consider the local government’s financial performance in the period beginning on 1 July and ending no earlier than 31 December in that financial year; and (b) consider the local government’s financial position as at the date of the review; and (c) review the outcomes for the end of that financial year that are forecast in the budget. (2) Within 30 days after a review of the annual budget of a local government is carried out it is to be submitted to the council. (3) A council is to consider a review submitted to it and is to determine* whether or not to adopt the review, any parts of the review or any recommendations made in the review.


36

(4) Within 30 days after a council has made a determination, a copy of the review and determination is to be provided to the Department. *Absolute majority required. STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2033 (CSP) Corporate Business Plan 2014-2018 Goal 5: Effective leadership and governance Community Outcome 2: Effective strategy, planning and asset management Strategic Response: Ensure the Shire’s financial performance is well managed and leads to a strong financial position PLANNING FRAMEWORK Nil FINANCIAL IMPLICATIONS The review provides an indication of the possible end of financial year position based on an assessment of actual expenditure to the end of December 2014 and expectations of revenue and expenditure for the next six months compared to the 2014-15 adopted Budget. SUSTAINABILITY IMPLICATIONS Environmental Nil Social Nil Economic The results of the mid-year budget review have provided an economic benefit by increasing reserves for future year’s expenditure. VOTING REQUIREMENTS Absolute Majority RECOMMENDATION That Council: 1. Receives the 2014-15 Budget review in accordance with regulation 33A of the Local Government

(Financial Management) Regulations 1996; 2. Adopts the results of the review and the budget adjustments contained in the Attachments; and 3. Provides one month’s local public notice in accordance with Section 6.11 of the Local





ADVICE TO APPLICANT / PROPONENT Nil ATTACHMENTS 1. 2014-15 Budget Review using results to 31 December 2014 Prior to debate, Cr Smart queried the $50,000 budget allocation for the Augusta squash courts. The CEO, Mr Gary Evershed, responded to Cr Smart, noting that the Recreation Operations Manager, Mr Dylan Brown, and the Coordinator of Building Assets and Maintenance, Mr David Gunn,


37

had been working with architect Theo Matthews to look at the possibility of refurbishment of the courts rather than demolition.


CR HASTIE, CR KENNAUGH OM2015/31 That Council: 1. Receives the 2014-15 Budget review in accordance with regulation 33A of the Local

Government (Financial Management) Regulations 1996; 2. Adopts the results of the review and the budget adjustments contained in the

Attachments; and 3. Provides one month’s local public notice in accordance with Section 6.11 of the Local





CARRIED 5/0


38

11.4.2 FINANCIAL ACTIVITY STATEMENT REPORT - JANUARY 2015

LOCATION/ADDRESS Shire of Augusta Margaret River APPLICANT/LANDOWNER Shire of Augusta Margaret River FILE REFERENCE FIN/14 REPORT AUTHOR Andrew Ross, Acting Director Corporate and Community Services AUTHORISING OFFICER Gary Evershed, Chief Executive Officer

IN BRIEF

The monthly financial activity statement report is a standard financial reporting item prepared in accordance with the provisions of the Local Government Act 1995 and Regulation 34 of the Local Government (Financial Management) Regulations 1996.

Council to consider the financial results for the period ending 31 January 2015. RECOMMENDATION That Council receives the Monthly Financial Report – January 2015 in accordance with Section 6.4 of the Local Government Act 1995 and Regulation 34 of the Local Government (Financial Management) Regulations 1996.

LOCATION PLAN Nil TABLED ITEMS Nil BACKGROUND In accordance with Financial Management Regulation 34 the Shire is to prepare each month a Statement of Financial Activity reporting on the sources and applications of funds, as set out in the annual budget under Financial Management Regulation (1) (d), for that month with the following details:

(a) annual budget estimates; (b) budget estimates to the end of the month to which the statement relates; (c) actual amounts of expenditure, revenue and income to the end of the month to which the

statement relates; (d) material variances between the comparable amounts referred to in (b) and (c); and (e) net current assets at the end of the month to which the statement relates.

Also under Financial Management Regulation 34(5) Council are to adopt each year a material variance threshold. At the Ordinary Meeting of Council on 23 July 2014 (OM2014/163) Council adopted a monthly variance for reporting of material variances, where financial activity is greater than 10% and $10,000. CONSULTATION AND ADVICE External Consultation Nil Internal Consultation Business unit managers were provided the draft monthly financial reports for their business units and have provided their comments on variances greater than 10% and $10,000.


39

DISCUSSION / OFFICER COMMENTS The commentary contained in the body of this report is in line with Financial Management Regulation (2) (b) that requires commentary on material variances to the Statement of Financial Activity at the nature/type, program or business unit level. It should be noted the budget variances have been calculated against the approved budget for 2014-15 as at the time of preparing this report the amended budget for 2014-15 had not been approved by Council. The Statement of Financial Activity shows a year to date actual closing position at 31 January of $14.813 million which was higher than the expected year to date budgeted position of $10.261 million. The main reasons for the variation to Budget are:

Operating expenditure on a year to date basis is $1.377 million or 7% below budget (last month 8%) and is primarily a result of materials expenditure being $0.957 million under budget, employee expenses being $0.702 million under budget and depreciation being $0.358 million over budget;

Operating revenue is $2.507 million or 10% above budget due to funds received from Main Roads WA for storm damage claims from last year, various insurance claims and payments from LGIS, increased planning and building activity generating more fees and charges than were budgeted, some unbudgeted grants, interest on investments and increased income received for services and facility usage;

Year to date capital expenditure of $3.401 million (after adjusting for the initial recognition of gravel, limesand and grit stocks) was significantly lower than the $7.474 million anticipated in the budget and is primarily a result of projects not commencing in accordance with Budget profiling; and

Grants for capital works are $1.395 million under budget as payment of the grant approved by Lotterywest for Cultural Centre equipment will not be received until project completion, the final instalment of the Regional Development Australia Fund (RDAF) grant for the Surfers Point project will also not be received until the final project report has been submitted and a grant of $1,000,000 was budgeted for the Cultural Centre redevelopment project.

The results by business unit continue to show that almost every business unit is recording an under budget result with several business units, including Child Care and Building Services recording small surpluses due to the use of these services or the number of applications received being higher than expected. Capital expenditure of $0.551 million during the month included:

$7,000 for a fire control unit for the Rangers;

$59,387 for various waste service works;

$47,901 on various community buildings;

$23,618 on various parks and gardens infrastructure projects;

$399,858 on various road projects including $166,569 on infrastructure upgrades and was primarily works for Treeton Road and Ellenbrook Road and $233,289 on various infrastructure renewal projects including Leeuwin Road, gravel resheeting and gravel road shouldering; and

$7,572 on caravan park works were primarily works to an amenity block at Flinders Bay.

Financial performance against budget is shown in the following charts.


40

-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

Liquidity Comparison

2014/15 14/15 Budget 2012/13 2013/14

- 5,000,000

10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000

Operating Revenue - YTD Budget vs Actual

2013-14 Actual 2014-15 Budget 2014-15 Actual

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

Non Operating Revenue - YTD Budget vs Actual



41

Following is the Statement of Financial Activity for the year ending 31 January 2015.

-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

Operating Expenditure - YTD Budget vs Actual


-

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

Capital Expenditure - YTD Budget vs Actual



42

SHIRE OF AUGUSTA - MARGARET RIVER

STATEMENT OF FINANCIAL ACTIVITY

FOR THE PERIOD ENDING 31 January 2015BUSINESS UNITS 2013-14 2014-15 2014-15 2014-15 2014-15 YTD

Last Year Approved Month of YTD YTD Variance

Actual Budget Jan Budget Actual >10% & Comments

$ $ $ $ $ >$10,000

OPERATING REVENUES

Rates 16,914,479 17,689,025 15,484 17,634,275 17,677,227 0

General Financing 1,590,192 1,800,551 66,333 950,799 1,037,510 0

Members of Council 1,091 0 3,770 0 3,770 0

Chief Executive Officer 10,706 0 2,000 0 18,510 18,510 Perm: Wildcats game income

Director Corporate & Community 7,900 8,000 750 4,500 13,621 0

Director Sustainable Development 370 0 0 0 4,750 0

Director Infrastructure 0 0 0 0 0 0

Finance 10,323 3,000 0 3,000 6,288 0

Records 260 0 0 0 34 0

Customer and Information Services 9,457 0 177 0 4,803 0

Customer Relations 192,810 198,000 14,462 98,000 104,922 0

Information Comm. Technology 600 0 231 0 562 0

Human Resources 38,737 10,000 0 10,000 32,446 22,446 Perm: LGIS Member Dividend

Community Development 87,791 70,300 560 61,900 34,013 (27,887) Timing: Project grants

Emergency and Fire Services 265,012 288,666 50,970 178,443 240,381 61,938 Perm: Insurance claim for vehicle

Rangers 186,584 150,612 25,048 89,687 117,192 27,505 Perm: Higher dog regos and grants of right of burial

Libraries 30,831 27,200 3,293 16,300 19,047 0

Health 80,456 77,441 4,915 65,589 72,817 0

Child Care 243,230 229,500 38,144 138,750 184,180 45,430 Perm: Grant and usage fees

Waste Services 3,976,826 3,938,286 61,585 3,698,981 3,822,910 0

Town Planning 334,666 326,000 14,115 202,000 259,256 57,256 Perm: Increased applications

Community Buildings 92,749 0 21,110 0 135,370 135,370 Perm: Insurance claims

MR Recreation Centre 907,231 867,395 50,659 505,395 524,518 0

Cultural Centre 15,723 14,400 3,653 8,400 3,562 0

Augusta Recreation Centre 30,898 34,000 1,929 19,600 16,526 0

Gloucester Park 73,568 57,200 (510) 33,700 47,014 13,314 Timing: Fees invoiced earlier than expected

Beach Lifeguards 0 0 0 0 0 0

Parks and Gardens 18,825 5,000 0 5,000 4,631 0

Asset Services 154,861 76,670 20,735 17,725 34,508 16,783 Perm: Increased fees and charges

Construction 26,073 0 0 0 0 0

Maintenance 786,239 75,384 13,695 43,974 1,250,665 1,206,691 Perm: WANDRRA claims for 2013-14 events

Plant Program 63,845 133,744 0 133,744 23,103 (110,641) Timing: Sale of vehicles

Caravan Parks 1,876,053 1,819,490 439,991 1,077,900 1,132,124 0

Building Control 241,212 215,000 17,140 128,500 152,437 23,937 Timing: increased applications

Works Overheads 2,693 0 0 0 0 0

Plant Operation Costs 0 0 0 0 0 0

Other Property and Services 927,771 40,000 1,561 20,000 674,883 654,883 Perm: Recognition of stock value

TOTAL REVENUES 29,200,063 28,154,864 871,800 25,146,162 27,653,576 2,507,414

OPERATING EXPENSES

Revenue (268,512) (466,022) (18,953) (180,436) (163,200) 17,236 Timing: Debt collection costs

General Financing (635,435) (608,727) (9,979) (333,541) (324,049) 0

Members of Council (276,920) (291,795) (27,800) (173,870) (164,421) 0

Chief Executive Officer (826,661) (954,437) (45,905) (585,216) (544,118) 0

Director Corporate & Community (460,339) (548,191) (22,834) (369,029) (299,492) 69,537 Timing: Projects

Director Sustainable Development (492,232) (603,418) (38,331) (357,368) (315,445) 41,923 Timing: Labour costs and projects

Director Infrastructure (296,930) (293,217) (5,233) (169,570) (156,605) 0

Finance (842,326) (869,740) (29,819) (688,231) (697,425) 0

Records (145,744) (161,160) (10,413) (92,563) (81,922) 10,641 Timing: Labour costs

Customer and Information Services (368,178) (382,767) (20,049) (225,458) (193,535) 31,923 Timing: Utilities and consumables

Customer Relations (411,955) (452,992) (31,459) (270,189) (237,972) 32,217 Timing : Vehicle registration plate project

Information Comm. Technology (902,775) (942,531) (51,776) (666,286) (608,302) 0

Human Resources (615,788) (666,009) (49,241) (387,368) (336,138) 51,230 Timing: Labour costs (leave & vacancy)

Community Development (600,686) (542,612) (29,631) (353,387) (257,051) 96,336 Timing: Projects

Emergency and Fire Services (884,966) (775,212) (44,551) (494,059) (437,732) 56,327 Perm: Contract services and lower depreciation

Rangers (573,963) (630,870) (42,734) (372,400) (308,495) 63,905 Timing: Labour costs (allowances), consumables

Libraries (781,746) (767,201) (44,059) (457,523) (427,013) 0

Health (522,213) (562,444) (22,542) (329,141) (281,959) 47,182 Timing: Labour costs (leave) & projects

Child Care (280,538) (290,617) (29,643) (171,350) (155,570) 15,780 Timing: Building maintenance, contract services

Waste Services (2,300,029) (2,598,780) (174,907) (1,590,772) (1,127,231) 463,541 Timing: Commencement of projects

Town Planning (926,697) (1,074,158) (57,280) (673,311) (537,098) 136,213 Timing: Labour costs & projects

Community Buildings (1,667,766) (1,748,690) (136,196) (1,109,656) (1,084,642) 0

MR Recreation Centre (1,745,372) (1,847,133) (160,064) (1,101,459) (1,096,994) 0

Cultural Centre (243,827) (315,200) (124,879) (297,900) (324,346) 0

Augusta Recreation Centre (80,602) (106,582) (9,269) (71,405) (33,786) 37,619 Timing: Labour, building maintenance, depreciation

Gloucester Park (279,119) (127,550) (17,343) (68,100) (130,918) (62,818) Perm: Depreciation due to building revaluation

Beach Lifeguards 0 (138,527) (19,184) (89,015) (40,125) 48,890 Timing: Labour budget profile should be seasonal

Parks and Gardens (1,936,879) (2,013,509) (184,707) (1,174,551) (1,052,743) 121,808 Timing: Reserve maintenance

Asset Services (1,194,999) (1,295,669) (93,581) (770,358) (533,718) 236,639 Timing: Labour costs and projects

Construction 0 0 0 0 0 0

Maintenance (8,911,461) (6,815,164) (526,363) (4,099,467) (4,253,836) 0

Plant Program (36,312) (29,368) (2,164) (29,368) (19,380) 0

Caravan Parks (1,105,673) (1,181,782) (113,397) (629,339) (567,537) 61,803 Timing: Labour costs and projects

Building Control (163,288) (232,674) (15,547) (136,031) (109,175) 26,856 Timing: Labour costs

Works Overheads 94,113 (75,626) (47,677) (40,036) (204,204) (164,168) Timing: Under recovery

Plant Operation Costs 254,929 34,653 61,162 (12,073) 259,426 271,499 Timing: Over recovery

Other Property and Services (12,959) (65,000) (5,135) (35,000) (381,560) (346,560) Perm: Recognition of stock value

TOTAL EXPENSES (30,443,848) (30,440,720) (2,201,482) (18,604,826) (17,228,309) 1,376,516

NET OPERATING SURPLUS/(DEFICIT) (1,243,785) (2,285,856) (1,329,682) 6,541,336 10,425,267 3,883,931


43

Investments At 31 January 2015 the Shire’s cash on hand, deposits and investments totalled $19,666,870 and total Shire investment interest earned for the month was $53,621. Actual interest earned for the year to date of $323,365 exceeds the year to date budget of $245,000.

Term Deposits – Cash Management At the end of January the Shire had the following short-term facilities (term deposits).

Term Days Maturity Institution (ADI) Principal $

Interest Rate Interest $

181 1/2/15 National Australia Bank 2,000,000 3.55% 35,792

91 17/2/15 Bankwest 3,000,000 3.40% 25,430

153 16/2/15 Bank of Queensland 1,000,000 3.45% 14,462

90 11/3/15 Bankwest 1,000,000 3.40% 8,384

181 16/3/15 Adelaide Bendigo Bank 1,000,000 3.40% 16,860


90 16/3/15 Members Equity Bank 1,000,000 3.35% 8,352

273 16/6/15 AMP Bank 1,000,000 3.50% 26,178

SHIRE OF AUGUSTA - MARGARET RIVER

STATEMENT OF FINANCIAL ACTIVITY

FOR THE PERIOD ENDING 31 January 2015BUSINESS UNITS 2013-14 2014-15 2014-15 2014-15 2014-15 YTD

Last Year Approved Month of YTD YTD Variance

Actual Budget Jan Budget Actual >10% & Comments

$ $ $ $ $ >$10,000

NON OPERATING GRANTS & CONTRIBUTIONS

Emergency and Fire Services 1,068,913 281,749 0 281,749 283,403 0

Town Planning 20,000 0 0 0 0

Community Buildings 0 1,000,000 0 1,000,000 0 (1,000,000) Perm: Possible grant for Cultural Centre project

Cultural Centre 40,000 185,500 0 185,500 0 (185,500) Timing: Grant approved, not yet received

Parks and Gardens 1,765,143 124,400 0 124,400 0 (124,400) Timing: Grant to be recived after final report

Asset Services 4,000 37,125 0 0 0 0

Construction 1,763,462 1,484,900 1,702 1,145,500 1,058,319 0

Caravan Parks 23,749 0 0 0 0 0

TOTAL NON OPERATING REVENUES 4,685,266 3,113,674 1,702 2,737,149 1,341,722 (1,395,427)

NET RESULT 3,441,482 827,818 (1,327,980) 9,278,485 11,766,989 2,488,504

ADJUSTMENTS FOR NON-CASH

REVENUE AND EXPENDITURE

Add back Depreciation 6,992,988 6,369,295 (586,441) 3,715,326 4,073,378 0

Add back (Profit)/Loss Asset Disposal (755,759) (104,376) (950) (104,376) (15,758) 88,618 Timing: Asset disposals

Add back Movement in Provisions,etc (139,257) 0 0 0 0 0

6,097,972 6,264,919 (587,391) 3,610,950 4,057,620 446,670

CAPITAL EXPENDITURE

Purchase Land Held for Resale 0 0 0 0 0 0

Purchase Land and Buildings (2,465,735) (2,451,749) (53,828) (1,591,249) (389,739) 1,201,510 Timing: project delays

Purchase Infrastructure Assets - Other (3,854,273) (2,301,000) (89,234) (1,744,830) (798,109) 946,721 Timing: Waste Services projects

Purchase Infrastructure Assets - Roads (3,738,068) (5,368,787) (399,859) (2,867,399) (1,347,578) 1,519,821 Timing: Works programme recently commenced

Purchase Plant and Equipment (1,662,507) (1,513,018) (908) (1,213,028) (556,169) 656,859 Timing: Budget profile of vehicle changeovers

Purchase Furniture and Equipment (374,076) (9,000) 0 (37,000) (16,110) 20,890 Timing: budget profile of purchases

Repayment of Debentures (720,508) (581,452) (16,757) (303,224) (303,224) 0

Advances to Community Groups (15,000) 0 0 0 0 0

Transfers to Cash Reserves (1,923,622) (409,247) (17,577) (409,247) (137,241) 272,006 Timing: Interest on reserves only

(14,753,789) (12,634,253) (578,163) (8,165,977) (3,548,170) 4,617,807

CAPITAL REVENUE

Proceeds from Disposal of Assets 1,056,351 315,319 0 315,319 80,658 (234,661) Timing: Sale of vehicles

Proceeds from Disposal of Investments 457,008 0 0 0 0 0

Proceeds from Self-Supporting Loan 15,225 13,599 0 9,759 9,759 0

Proceeds from New Loan 0 0 0 0 0

Transfers from Cash Reserves 2,585,400 3,171,287 0 3,171,287 12,768 (3,158,519) Timing: Transfers to be processed when required

4,113,984 3,500,205 0 3,496,365 103,185 (3,393,180)

SURPLUS/(DEFICIT) JULY 1 B/FWD 3,533,619 2,041,311 2,041,311 2,433,267 391,956 Perm: Opening surplus larger than expected

SURPLUS/(DEFICIT) C/FWD 2,433,267 0 (2,493,534) 10,261,134 14,812,891 4,551,757


44


15,000,000 262,109

No Term Deposits matured in January. The average rate of interest to be paid on all of the term deposits is 3.48%.

Overnight cash facility As a result of Supertowns the Shire has an overnight cash deposit facility with WATC that has a balance of $444,640 including interest earned. $2,396 interest was earned for the month of January. The $1 million payment for the Perimeter Road project was drawn down from the OCDF on 23/1/15 and will be paid to Main Roads WA. The OCDF and all interest earned is quarantined for Supertown projects. Held for Trading CDOs The Shire no longer has any CDOs in its investment portfolio. The class action for these CDOs is still in progress and if successful is anticipated to recover a portion of the total loss on this portfolio of $404,547.

A1+ NAB 46%

A1+ Bankwest 27%

A1 - AMP Bank 7%

A2 - Bendigo, BoQ & ME

Banks 20%

Portfolio Diversity

Up to 30days

60 days 90 days 120 days 150 days 180 days 210 days 240 days 270 days

A1+ 5,000,0 4,000,0 2,000,0

A1 1,000,0

A2 1,000,0 2,000,0

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

Inve

stm

en

t A

mo

un

t ($

's)

Investment Maturity Timing


45

In-Kind Support In-Kind support and fee waivers as at 31 January 2015 totalled $11,897 and included $10,400 of fees waived by Council for the Augusta Adventure Race and the Drug Aware Surf Pro and $1,497 of other fees waived under delegation. In addition $2,200 was provided in sponsorships for sports representatives. Reserves Movement to reserves at this stage only represent interest earned on those funds for the year to date. Budgeted transfers to and from reserves will occur progressively through the year. STATUTORY ENVIRONMENT / LEGAL IMPLICATIONS As per Financial Management Regulation 34 the Shire is to prepare each month a Statement of Financial Activity reporting on the sources and applications of funds, as set out in the annual budget under Financial Management Regulation 22(1) (d). STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2033 (CSP) Corporate Business Plan 2014-2018 Goal 5: Effective leadership and governance Community Outcome 2: Effective strategy, planning and asset management Strategic Response: Ensure the Shire’s financial performance is well managed and leads to a strong financial position PLANNING FRAMEWORK Nil FINANCIAL IMPLICATIONS The overall financial performance of the Shire is as summarised in this report. SUSTAINABILITY IMPLICATIONS Environmental Nil Social Nil Economic As stated in the report. VOTING REQUIREMENTS Simple Majority RECOMMENDATION That Council receives the Monthly Financial Report – January 2015 in accordance with Section 6.4 of the Local Government Act 1995 and Regulation 34 of the Local Government (Financial Management) Regulations 1996. ADVICE TO APPLICANT / PROPONENT Nil ATTACHMENTS 1. Monthly Financial Report consisting of:

a. Notes to and forming part of the Statement of Financial Activity b. Financial Reports by Business Units


46


CR EARL, CR KENNAUGH OM2015/32 That Council receives the Monthly Financial Report – January 2015 in accordance with Section 6.4 of the Local Government Act 1995 and Regulation 34 of the Local Government (Financial Management) Regulations 1996.

CARRIED 5/0


47

11.4.3 LIST OF PAYMENTS FOR JANUARY 2015

LOCATION/ADDRESS Shire of Augusta Margaret River APPLICANT/LANDOWNER Shire of Augusta Margaret River FILE REFERENCE FIN/42 REPORT AUTHOR Stella Tippet, Finance Officer AUTHORISING OFFICER Andrew Ross, Acting Director Corporate and Community Services

The Director Corporate and Community Services discloses interest in the credit card expenses which is certified by the Chief Executive Officer. IN BRIEF It is a requirement of the Local Government (Financial Management) Regulations 1996 that payments made under delegated authority by the CEO are reported to Council on a monthly basis showing details of each account paid since the last such list was prepared. RECOMMENDATION That Council notes the January 2015 List of Payments of $2,085,689.74 as certified as correct by the Acting Director Corporate and Community Services.

LOCATION PLAN Nil TABLED ITEMS Nil BACKGROUND Where Council has delegated authority to the CEO to make payments from the Shire’s bank accounts then under Local Government (Financial Management) Regulations 1996, Regulation 13 (1) a list of such payments is to be prepared each month for noting by Council.

CONSULTATION AND ADVICE External Consultation Nil Internal Consultation Nil DISCUSSION / OFFICER COMMENTS Table 1 below provides a summary of the payments made and Table 2 makes comparison between payments for the 2013/14 and 2014/15 financial years. The List of Payments attachment provides further details as required under Regulation 13 (1). These details are as follows:

(a) The payee’s name; (b) The amount of the payment; (c) The date of the payment; and (d) Sufficient information to identify the transaction.

In order to improve operational efficiency and reduce costs the Shire’s Finance team continually liaise with creditors paid by cheque to encourage them to switch to EFT.


48

TABLE 1 – SUMMARY OF PAYMENTS MADE IN THE MONTH

Mode of Payment Cheque / EFT

Numbers Sub-Total Amount

Cheques (includes reimbursement of credit cards)

41759-41779 $27,233.40 $27,233.40

EFT 46749- 47048 $1,305,425.54

Direct Debits $753,030.80 $2,058,456.34

TOTAL $2,085,689.74

TABLE 2 – COMPARISON WITH PRIOR YEAR OF PAYMENTS

MONTH CHEQUES EFT TOTAL PMTS CHEQUES EFT TOTAL PMTS

2013/14 2013/14 2013/14 2014/15 2014/15 2014/15

JULY $33,585.55 $3,403,267.39 $3,436,852.94 $27,627.52 $3,382,878.99 $3,410,506.51

AUGUST $13,478.79 $8,251,231.55 $8,264,710.34 $24,371.61 $1,881,379.90 $1,905,751.51

SEPTEMBER $24,116.63 $8,549,073.97 $8,573,190.60 $29,105.88 $10,523,000.04 $10,552,105.92

OCTOBER $22,159.85 $3,536,806.15 $3,558,966.00 $16,883.83 $3,009,076.16 $3,025,959.99

NOVEMBER $21,331.92 $3,420,684.44 $3,442,016.36 $37,159.65 $2,423,568.91 $2,460,728.56

DECEMBER $21,495.36 $4,327,763.54 $4,349,258.90 $28,403.96 $3,158,418.92 $3,186,822.88

JANUARY $19,932.71 $2,466,975.07 $2,486,907.78 $27,233.40 $2,058,456.34 $2,085,689.74

FEBRUARY $30,263.36 $8,776,712.18 $8,806,975.54

MARCH $23,803.70 $2,679,343.95 $2,703,147.65

APRIL $23,495.00 $3,181,582.86 $3,205,077.86

MAY $29,084.59 $3,386,392.80 $3,415,477.39

JUNE $44,011.46 $2,830,518.20 $2,874,529.66

$306,758.92 $54,810,352.10 $55,177,111.02 $190,785.85 $26,436,779.26 $26,627,565.11

STATUTORY ENVIRONMENT / LEGAL IMPLICATIONS Local Government Act 1995, s 6.10, and Local Government (Financial Management) Regulations 1996, r 13 STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2033 (CSP) Corporate Business Plan 2014-2018 Goal 5: Effective leadership and governance Community Outcome 2: Effective strategy, planning and asset management Strategic Response: Ensure the Shire’s financial performance is well managed and leads to a strong financial position Service level strategy/plan: Continue to monitor and analyse monthly, year to date and annual financial performance PLANNING FRAMEWORK Nil FINANCIAL IMPLICATIONS Nil SUSTAINABILITY IMPLICATIONS Environmental Nil


49

Social Nil Economic Nil VOTING REQUIREMENTS Simple Majority RECOMMENDATION That Council notes the January 2015 List of Payments of $2,085,689.74 as certified as correct by the Acting Director Corporate and Community Services. ADVICE TO APPLICANT / PROPONENT Nil ATTACHMENTS 1. List of Payments for January 2015 RECOMMENDATION / COUNCIL DECISION

CR EARL, CR HAYNES OM2015/33 That Council notes the January 2015 List of Payments of $2,085,689.74 as certified as correct by the Acting Director Corporate and Community Services.

CARRIED 5/0


50

11.4.4 SPORTS AND RECREATION ADVISORY COMMITTEE MEETING MINUTES 4 FEBRUARY 2015

LOCATION/ADDRESS Shire of Augusta Margaret River APPLICANT/LANDOWNER Shire of Augusta Margaret River FILE REFERENCE REC/36 REPORT AUTHOR Hannah Waters, Personal Assistant Corporate and Community

Services AUTHORISING OFFICER Andrew Ross, Acting Director Corporate and Community Services

IN BRIEF

On the 4 February 2015, the Sports and Recreation Advisory Committee (SRAC) held its bi-monthly meeting.

The Margaret River Rotary Club presented information about a proposed Men’s Shed within Gloucester Park.

Committee Members were reminded that they may be disqualified from the committee for failure to attend meetings.

At this meeting recommendations were passed proposing that:

The SRAC: Would like to provide in principle support for the investigation of the establishment of a

Men’s Shed in Gloucester Park; Shire staff to carry out investigations on site options to be presented at the next meeting.

The minutes of the SRAC meeting held 6 August 2014 be confirmed as a true and correct record of the meeting;

That the committee status of the Augusta Community Recreation Centre Action Group will be considered and voted upon at the next meeting; and

The location of the next SRAC meeting scheduled to be held on Wednesday, 1 April 2015 will be moved to Mainbreak meeting room at the Margaret River Civic Centre, commencing at 7.00pm.

RECOMMENDATION That Council receives the minutes of the Sports and Recreation Advisory Committee meeting held 4 February 2015.

LOCATION PLAN N/A TABLED ITEMS Nil BACKGROUND The Sports and Recreation Advisory Committee meetings held on the 1 October 2014 and 3 December 2014 failed to reach a quorum. CONSULTATION AND ADVICE External Consultation

SRAC delegates

Margaret River Rotary Club Internal Consultation Nil


51

DISCUSSION / OFFICER COMMENTS Presentation on Margaret River Men’s Shed A representative of the Margaret River Rotary Club attended the SRAC held on the 3 December 2014 to give a presentation about establishing a Men’s Shed within Margaret River. Two sites within Gloucester Park were identified as potential locations. The meeting did not achieve a quorum however the members present voiced in principal support for the project and invited the Rotary Club to make a further presentation at the next meeting being held on the 4 February 2015. At the meeting held on the 4 February, the committee discussed the establishment of a Men’s Shed in Margaret River as well as proposed sites that could accommodate a 2000sqm footprint. The proposal outlined an initial build of approximately 300sqm which could be expanded to meet future needs. The Rotary Club’s preference is to locate the facilities within Gloucester Park. Two other sites around town have been investigated by Rotary and have been discarded as they are not fit for purpose. A motion of support for the establishment of the Men’s Shed within Gloucester Park and for Shire staff to carry out investigations on site options to present at the next SRAC was put forward. Two delegates spoke against the motion. Following further discussions a recommendation was put forward and carried 12:2. Disqualification for failure to attend meetings The SRAC meetings held on the 1 October 2014 and the 3 December 2014 both failed to achieve a quorum. Delegates were reminded that as they were elected members of a committee of Council the meetings operate under the Local Government Act 1995 and the Shire of Augusta Margaret River Standing Orders Local Law 2011 and as such attendance at meetings is mandatory. Members who fail to attend three consecutive meetings, with or without an apology may be disqualified from continuing his or her membership. Committee members reaffirmed their commitment to the attend meetings and only one group who has already tended their resignation to the committee will be put forward for disqualification at the next meeting. April meeting scheduled for Augusta Historically the April SRAC meeting has been held in Augusta to alleviate the burden of travel required by the Augusta representative of the committee. As a representative from Augusta has not attended any committee meetings since June 2014 the April SRAC meeting has been moved to the Mainbreak meeting room at the Margaret River Civic Centre. STATUTORY ENVIRONMENT / LEGAL IMPLICATIONS Nil STRATEGIC PLAN / POLICY IMPLICATIONS Community Strategic Plan 2033 (CSP) Corporate Business Plan 2014-2018 Goal 5: Effective leadership and governance Community Outcome: Effective governance and corporate leadership Strategic Response 1.5: Develop effective partnerships and strategic alliances to maximise community benefits Service level strategy/plan 1.5.1: Hold regular meetings with the Sports and Recreation Advisory Committee PLANNING FRAMEWORK Nil


52

FINANCIAL IMPLICATIONS Nil SUSTAINABILITY IMPLICATIONS Environmental Nil Social Nil Economic Nil VOTING REQUIREMENTS Simple Majority RECOMMENDATION That Council receives the minutes of the Sports and Recreation Advisory Committee meeting held 4 February 2015. ADVICE TO APPLICANT / PROPONENT Nil ATTACHMENTS 1. Sports and Recreation Advisory Committee meeting minutes and attachments – 4 February 2015 RECOMMENDATION / COUNCIL DECISION

CR EARL, CR KENNAUGH OM2015/34 That Council receives the minutes of the Sports and Recreation Advisory Committee meeting held 4 February 2015.

CARRIED 5/0


53

12. MOTIONS OF WHICH PREVIOUS NOTICE HAS BEEN GIVEN

Nil

13. MOTIONS FOR CONSIDERATION AT NEXT MEETING

Nil

14. NEW BUSINESS OF AN URGENT NATURE

14.1. Members

Nil

14.2. CEO

Nil

15. CONFIDENTIAL BUSINESS

Nil

16. CLOSURE OF MEETING

The Shire President thanked all in attendance and closed the meeting at 5.50pm.

Ordinary Council - Shire of Augusta–Margaret River · 2015. 2. 26. · SHIRE OF AUGUSTA MARGARET...

Documents

Transcript of Ordinary Council - Shire of Augusta–Margaret River · 2015. 2. 26. · SHIRE OF AUGUSTA MARGARET...