2019-11-18 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                              18 NOVEMBER 2019


9      BUDGET REVIEW 2 (BR2) FOR THE 2019/20 FINANCIAL YEAR

Author             Manager Financial Services, Trent Grauf
                   Corporate Services Department

Index              ECM / Subject / 7.23 – 2019-2020 Budget

Attachments        1.   Proposed Operating Budget Submissions
                   2.   Proposed Capital Budget Submissions
                   3.   Revised Capital Program
                   4.   Revised Statement of Income and Expenditure
                   5.   Revised Budget Financial Statements


EXECUTIVE SUMMARY
The Local Government Act 2009 and Local Government Regulation 2012 require Council to
undertake regular reviews of the adopted budget to ensure it remains reflective of planned activities
to be funded through the financial year. This second budget review for the 2019/20 financial year
(BR2) incorporates any new or emergent actions arising from Council resolution, Executive Team
or Capital Works Executive Committee action, reallocation of funds or realised revenue variance
since the adoption of the current BR1 budget in August 2019.
In summary the budget review is proposing a marginal decrease of $5k to Council’s operating
position resulting in a revised operating surplus of $24k. The revised capital expenditure program
remains at $30.9 million.

Item                                       Current Budget          Proposed       Revised Budget
                                                    (BR1)        Adjustments               (BR2)
                                                   ($’000)            ($’000)             ($’000)
Operating Revenue                                 $99,870               ($36)            $99,833
Operating Expenditure                              $99,841               ($32)            $99,809
Operating Result                                       $29                ($5)                $24
Capital Grants and Contributions Revenue            $6,184              ($673)             $5,511
Capital Works Expenditure                          $30,880                ($7)            $30,873

RECOMMENDATION
That Council note the report by the Manager Financial Services to the General Committee Meeting
dated 18 November 2019 and approve the proposed changes to the budget for the 2019/20
financial year as outlined in the revised Budget Financial Statements attached to the report.


REPORT
Section 170(3) of the Local Government Regulation 2012 allows Council, by resolution, to amend
the budget at any time before the end of the financial year. Consequently, formal budget reviews
are scheduled to occur during August, November and April using the latest financial information
available as the basis to revise the budget forecast.
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 delivery-ready with a commitment to
       complete the project during the year.


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