2015-12-14 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                              14 DECEMBER 2015


REPORT
Recurrent Revenue (YTD Benchmark 42%)

Council has received 48% ($42.4 million) of its recurrent revenue budget of $87.6 million as at
the end of October 2015. Commentary on each 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 ($3.2m) totals 67% of the full year. All
      variances will be monitored to determine whether further adjustments should be made as
      part of the December quarter budget review.
    Interest Received – Currently 5.8% 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 – marginally above budget predictions, with all variances to be monitored to
      determine whether adjustments should be made as part of the next budget review.
    Grants and Subsidies – Overall receipts for operational grants are in accordance with the
      revised budget forecast.

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

 $4.5
 $4.0
                                  YTD Budget ($m)
 $3.5
                                  YTD Actual ($m)
 $3.0
 $2.5
 $2.0
 $1.5
 $1.0
 $0.5
 $0.0
                                                         Other




                                                                    Grants
            Fees




                       Dividend




                                               Tax
                                    Interest




Recurrent Expenditure (YTD Benchmark 42%)

Operating expenditure is currently 39% of the full year budget forecast. Detailed commentary for
significant items appears below.
     Employee Costs – Actuals of $10.9m against the YTD budget of $11.0m and equates to
       39% of the full year budget. Though there is a favourable variance in this area all areas will
       continue to be monitored.
     Materials and Services – 37% of budget ($14.7m) has been expended compared to the
       budget of $16.5m. As with employee costs, all variances are subject to ongoing review.
     Finance Costs – generally in accordance with budget, though the year-end forecast for
       merchant fees will continue to be monitored after the second half-yearly rate levy.
     Depreciation expenses are currently running in accordance with budget forecasts.
     Other Expenses – generally in accordance with budget.

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