2015-10-19 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                              19 OCTOBER 2015


RECOMMENDATION
That Council note the report by the Manager Financial Services to the General Committee
Meeting dated 19 October 2015 providing the September 2015 monthly financial performance
report for the 2015/16 financial year.

REPORT
Recurrent Revenue

Council has received 44% ($38.7m) of its recurrent revenue budget of $87.3 million as at the end
of September 2015 with the majority of income ($30m) related to the first half-yearly levy of rates
and utility charges. Commentary on each recurrent revenue type is provided below:

    Rates and Levies – $30.2m (50%) of the annual budget of $60.5m has been recorded.
    Fees and Charges – Fees and charges earned ($2.5m) totals 52% of the full year budget
      (compared to the YTD benchmark of 25%) due primarily to the issuing of annual dog
      registration fees and also licences and permits. There are a number of fee areas that are
      marginally above budget, and the full-year forecast will be reviewed as part of the
      September quarter budget review.
    Interest Received – Currently 2.7% above forecast levels due to higher cash balances than
      originally estimated.
    Dividend and Tax – Dividends and the payment of tax equivalent from Unitywater are in
      line with budget forecasts.
    Other Revenue – Generally in accordance with budget predictions, though all variances will
      be investigated as part of the September quarter budget review.
    Grants and Subsidies – Overall receipts for operational grants are in accordance with
      budgeted levels.

Figure 2: Recurrent Revenue Position by Type (Excluding Rates)

 $3

 $3

                                      YTD Budget ($m)
 $2
                                      YTD Actual ($m)
 $2

 $1

 $1

 $0
                                                        Other
          Fees




                                                                  Grants
                     Dividend




                                               Tax
                                Interest




Recurrent Expenditure

Operating expenditure of $21.6 million is currently 24% of the full year budget spend with a
positive YTD variance of $1m or 4%. The favourable budget variance relates to under
expenditure to date in materials and services. Detailed commentary for significant items appears
below.

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