2018-08-13 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                        13 AUGUST 2018


The key criteria for budget reviews include:
1.   Council must maintain an operating surplus in the original budget year and ensure financial
     sustainability targets continue to be met.
2.   The eligible capital or operating project must be underway with a commitment to deliver
     and complete the project.
3.   Capital submissions will be reviewed and authorised by the Capital Works Executive group
     before inclusion as a budget review submission, where the group will consider justification
     for the request, deliverability as well as organisational and community priorities before
     endorsing any capital works.
4.   All operating and capital submissions for additional spend, reallocation of savings or
     additional revenue will be confirmed by the Executive Team based on business risk
     assessment.

The revised statement of comprehensive income, included as Attachment 4, identifies the
financial statement line items that have been affected by the proposed budget adjustments. The
budget financial statements, included in Attachment 5, also identify the impact of the proposed
budget adjustments to Council’s financial sustainability indicators.

1.      Operating Budget Adjustments
The proposed operational budget adjustments will result in a $139k decrease to the operating
surplus. The following table summarises the operational carryovers by department and branch,
with a detailed list contained in Attachment 1. The financial statements in Attachments 4 and 5
outline the revised budget position as a result of these carryovers.

Department               Branch                Description                          Revenue     Expenditure
                                                                                      ($’000)       ($’000)
Chief Executive Office   Chief Executive Office Contractual commitments                  $47            $47
Environment and          Development             Grant funded projects                     $-           $16
Sustainable              Assessment
Development              Environmental           Contractual commitments                   $-           $21
                         Services
Community Services       Libraries and Galleries Grant funded projects                     $-           $52
                         Community             Grant funded projects                      $8            $32
                         Development           RADF funding commitments                    $-           $52
Executive Services       Governance            Insurance savings                           $-          ($26)
Total                                                                                    $55           $194

2.      Proposed Carryovers - Capital Expenditure Projects
To inform the determination of carryovers, the following table summarises the 2017/18 full year
financial result for the capital works program. It identifies 44 projects for possible carryover with a
total unspent budget of $2.1 million. A review of these 44 capital projects has also identified a
possible savings of $341k which does not need to be carried forward to the 2018/19 program.

Item                               #        Current     Full Year Under/ Over           Savings      Proposed
                                            2017/18       Actual       Spent                         Carryover
                                            Budget        Spend

                                             ($'000)      ($'000)       ($'000)
Projects Financially Complete     78        $16,777      $16,943           ($166)               $-             $-
Projects Still Underway at 30     44        $14,162      $12,024        $2,138              $341        $1,853
June 2018
Total                             122       $30,939      $28,967        $1,972            ($341)        $1,853

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