2014-06-17 Planning & Organisation Committee Agenda

PLANNING & ORGANISATION COMMITTEE MEETING AGENDA                                       17 JUNE 2014


2.     Operating Expenses

 Employee benefits – actuals are marginally above the year-to-date forecast and this is
   partially related to the level of labour expense attributed to capital projects. It is expected that
   this will be resolved through June.
 Materials and services – the favourable variance under this heading relates primarily to
   savings in contract services, and this more than offsets any unfavourable variance elsewhere
   in the budget. This level of variance is not expected to continue into the new financial year
   with the 2014/2015 budget forecasts based on the current Noosa Council business model
   rather than on the budgets inherited from Sunshine Coast Council.
 Finance costs – generally in accordance with budget forecasts, with a slight saving to
   merchant fees expected by the end of the year.
 Other expenses – the favourable variance is partially attributed to the level of insurance
   claims activity experienced since de-amalgamation, but most areas are generally in
   accordance with original estimates.

3.     Capital Works

 The attached report shows the level of expenditure incurred against each project, with
   explanations for significant variances having been reported through the Infrastructure and
   Services Committee. Any unexpended funds will be considered for carry-over into the
   2014/2015 period once the final operating position for the 2013/2014 period has been
   determined.

4.     Investment Performance

 Total interest yield for the month of May was $122,588, which represented a weighted
   average return of 3.08% compared to the industry benchmark (UBS Bank Bill Index) of
   2.69%. 100% of the portfolio is held with A1+ ranked agencies, with 12.6% held by the
   Commonwealth Bank of Australia and the balance held with Queensland Treasury
   Corporation.
 There have been no breaches of Investment Policy guidelines during the month, with a very
   conservative position taken on all occasions.

Previous Council Consideration

Nil.

Finance & Risk

The focus on maintaining an operating surplus and ensuring tight ongoing budget control will
provide a solid platform for ensuring Council’s financial sustainability.

Consultation

External Consultation - Community & Stakeholder

Nil.

Internal Consultation

All areas of Council have been consulted as part of the review of budget variances.



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