2016-12-12 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                       12 DECEMBER 2016


Recurrent Expenditure (YTD Benchmark 42%)

Operating expenditure is currently 39% of the full year budget forecast. Detailed commentary for
each expenditure category appears below:
 Employee Costs – Actuals of $10.7m against the YTD budget of $10.9m and equates to 37%
   of the full year budget. This is represented by an under-expenditure of the training allocation
   ($80k), a rebate for Work Cover premiums ($37k), and recovery from labour allocations to
   capital projects exceeding budget.
 Materials and Services – $15.5m (38% of the full year budget) has been expended compared
   to the YTD budget of $16.1m. Year to date variances relate to contract services budgets,
   specifically under expenditure in insurance costs ($18k); Waste & Environmental Health
   operations ($51k); ICT Operations (57k); Fleet & Plant operations ($61k); Library Services
   ($28k); and Property & Facilities ($97k). Civil Works is below budget ($285k); and Planning
   costs are currently ahead of budget by $138k due to ongoing appeal costs. All significant
   variances will be monitored for possible further adjustment with the December quarter review.
 Finance Costs – bank merchant fees ($3.5k) and interest on loans ($29k) are currently below
   the YTD budget.
 Depreciation expenses – actual depreciation exceeds the YTD budget by $204k. A revised
   forecast will be done as part of the December quarter budget review to account for a higher
   than anticipated impact of asset revaluations undertaken as at 30 June 2016.
 Other Expenses – in accordance with YTD budget.

Figure 3: Recurrent Expenditure Position by Type
 $18
 $16
                                                      YTD Budget ($m)
 $14
 $12                                                  YTD Actual ($m)

 $10
  $8
  $6
  $4
  $2
  $0
                                      Finance Costs
                         Materials




                                                                Depreciation
            Employees




                                                                               Other




Capital Revenue

YTD capital revenue of $2.7m received includes $1.9m of cash contributions from developers,
together with $745k received as grant funding towards capital projects. Adjustments will be made
as part of the December quarter budget review when annual trends are more apparent.

Capital Works Program

Actual capital expenditure (excluding commitments) is $4.8 million against the revised full-year
budget of $25.4 million. Committed expenditure totals a further $6.5 million bringing the total of
actual and committed funds to $11.3 million (45% of the total program).


                                                                                            Page 77 of 81