2021-04-12 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                       12 APRIL 2021


4      BUDGET REVIEW 3 (BR3) FOR THE 2020/21 FINANCIAL YEAR


Author             Manager Financial Services, Trent Grauf
                   Corporate Services Department

Index              ECM / Subject / 7.26 – 2020-2021 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 third and final budget review for the 2020/21 financial
year (BR3) incorporates any new or emergent actions arising from Council resolution, Executive
Team or Capital Works Executive Committee review, reallocation of funds or realised revenue
variance since the adoption of the current BR2 budget in December 2020.
In summary the budget review is proposing a net improvement of $2.0 million to Council’s operating
position, resulting in the operating deficit decreasing from $3.0 million to $0.9 million. This decrease
is primarily due to the additional revenue raised from facilities reopening earlier than anticipated due
to COVID-19 pandemic related closures. The revised capital expenditure program has also
decreased by $4.2 million to $31.2 million.

Item                                       Current Budget           Proposed      Revised Budget
                                                    (BR2)         Adjustments              (BR3)
                                                   ($’000)             ($’000)            ($’000)
Operating Revenue                                 $96,958               $4,203          $101,162
Operating Expenditure                              $99,915             ($2,194)           $102,109
Operating Result                                   ($2,957)             $2,009               ($947)
Capital Grants and Subsidies                       $11,642                 $46             $11,688
Capital Works Expenditure                          $35,392             ($4,150)            $31,243


RECOMMENDATION
That Council note the report by the Manager Financial Services to the General Committee Meeting
dated 12 April 2021 and approve the proposed changes to the budget for the 2020/21 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.




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