2021-04-12 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                        12 APRIL 2021


The key criteria for budget reviews include:
1.      Council must ensure compliance with its financial sustainability policy targets. Note for the
        2020/21 adopted budget, one indicator will not be met due to COVID-19 impacts.
2.      The eligible capital or operating projects must be delivery-ready with a commitment to complete
        the project during the year.
3.      Capital submissions will be reviewed and authorised by the Executive Team 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.      Proposed Operating Budget Adjustments
The proposed 24 operational budget adjustments will result in a $2.0 million decrease to the
operating deficit. The following table summarises the operational carryovers by type of funding, 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 proposed adjustments.

    Type                                    Submissions         Revenue            Expense
                                                                 ($’000)             ($’000)
    Increased Revenue (net)                       7               $4,061               $980
    Grant Funded                                  9                 $142               $313
    Levy Funded                                   1                    $-               $18
    General Revenue and Reserve Funded            7                    $-              $883
    Total                                        24               $4,203             $2,194

2.      Proposed Capital Budget Adjustments
A total of 20 budget review submissions were received for capital works, with a proposed decrease
of $4.2 million to the 2020/21 capital works program. All capital submissions have been reviewed by
the Capital Works Executive.
The table below summarises the budget submissions by program and categorised as:
       Emergent Works: Initiation of new capital works item which have arisen since BR2.
       Variation: Acceptance of tender, change in scope or reallocation of funds.
       Grant / Levy Funded: Initiation of works funded through successful grant application or
        utilisation of constrained reserves set aside for that purpose.
       Timing Adjustment: Commencement of construction has been delayed or brought forward
        and works will straddle two financial years into 2021/22.
The full list of submissions is contained in Attachment 2.




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