2014-07-22 Planning & Organisation Committee Agenda

PLANNING & ORGANISATION COMMITTEE MEETING AGENDA                                      22 JULY 2014


2.    Operating Expenses

    Employee benefits – there is a small favourable variance in this area.
    Materials and services – the favourable variance under this heading relates primarily to
      savings in contract services. 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 achieved.
    Depreciation and amortisation – with the revaluation of assets still to be finalised, there
      may be some adjustment to this area, but until actual figures are available the
      budgeted figures have been applied.
    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 $110,185, which represented a weighted
      average return of 3.22% compared to the industry benchmark (UBS Bank Bill Index) of
      2.73%. 100% of the portfolio is held with A1+ ranked agencies, with 19.6% 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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