2015-09-15 Infrastructure and Services Committee Agenda

INFRASTRUCTURE & SERVICES COMMITTEE MEETING AGENDA                               15 SEPTEMBER 2015


Option B. Council ‘caretaker’ model

The ‘caretaker’ model uses the existing 2015/16 budget to project overall costs across the two
financial years:

                                               Projected budget 1 January – 31 December 2016
Revenue                                                                                  -$8,371
Expenditure                                                                            $146,797
  Employee Benefits**                                                                               $52,900
  Materials & Services***                                                                           $92,946
  Other Expenses                                                                                      $951

Net Operating Cost to Council                                                                      $138,426

Depreciation & Amortization                                                                         $19,745
Corporate Overheads                                                                                 $78,056

Total Cost to Council                                                                              $236,227

** - potentially, this is a worst case scenario based on current levels of usage. If there was a
reduction in usage (for example, no after-hours opening) than the actual cost would be lower.
*** - similarly, lower usage would result in lower costs for services such as electricity, water
usage etc.

Option C. Council ‘activation’ model

Employee costs would increase under this model with a requirement for Council to staff the
BFAC. The figures provided are considered conservative because after hours and weekend
penalties have not been factored into the increased employee benefits calculation. While an
increase in revenue has been factored into this model, it is likely that increased revenue will be
offset by the additional materials and services required to provide programs and exhibitions.
Adoption of this model would require an adjustment to the budget in Budget Review 3.

                                               Projected budget 1 January – 31 December 2016
Revenue                                                                                 -$18,496
Expenditure                                                                            $238,552
  Employee Benefits *                                                                              $134,530
  Materials & Services #                                                                           $103,071
  Other Expenses                                                                                      $951

Net Operating Cost to Council                                                                      $220,056

Depreciation & Amortization                                                                         $19,745
Corporate Overheads                                                                                 $78,056

Total Cost to Council                                                                              $317,858
Notes:
* An additional LGOA Level 4 position has been added under the activation model.
# It is anticipated that revenue increases will be offset by materials and services requirements

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