2017-12-12 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                              12 DECEMBER 2017


Figure 1: Operating Revenue Position by Type (Excluding Rates)
  Gra nts
  Other
  Tax




                                                   YTD Actual ($m)
  Sale s Divi dend Inte rest




                                                   YTD Budget ($m)
  Fees




              $0.0             $2.0      $4.0    $6.0        $8.0    $10.0


Operating Expenditure

Council spent $88.8 million on its operating expenditure compared to the budget of $89.8 million
for the full year. A breakdown on each of Council’s expenditure sources is outlined below:

Table 2: Operating Expenditure Performance by Type
Revenue Type                          Budget    Actual   Variance
                                         $m        $m          $m
Employees                              $28.8     $28.9        $0.1
Materials                              $40.9     $37.8      ($3.1)
Finance Costs                           $2.6      $4.4        $1.8
Depreciation                           $17.4     $17.7        $0.3
Total                                  $89.8     $88.8      ($1.0)
Note: Some rounding


 Employee Costs – Costs of $28.9m exceeded the $28.8m annual budget by $50k.
 Materials and Services – Actual costs of $37.8m for materials and services were incurred
   compared to the budget of $40.9m. Of the $3.1m variance approximately $2.5m related to
   levy expenditure which is restricted for future use (in particular public transport, environment,
   heritage, transport, main beach and Hastings St maintenance). The remaining positive
   variances primarily relate to under-expenditure against contract services, in particular savings
   against ICT costs ($374k), waste management costs ($429k), asset condition assessments
   ($162k) and streetlighting charges ($113k). Council did incur over expenditure in some areas
   in particular the clean-up costs resulting from ex tropical cyclone Oswald ($524k), legal costs
   associated with development appeals ($141k) and arborist costs ($63k).
 Finance Costs – Actual finance costs of $4.4m exceeded budget by $1.8m due primarily to a
   year-end adjustment in the calculation to value Council’s future landfill rehabilitation provision
   (a non-cash adjustment with the provision fund being gradually cash backed over the life of
   the landfill).
 Depreciation – Actual depreciation expense exceeded budget by $300k reflecting additional
   depreciation associated with road, bridge and footpath assets.




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