2017-02-13 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                       13 FEBRUARY 2017


Recurrent Expenditure (YTD Benchmark 58%)

Operating expenditure is currently 55% of the full year budget forecast. Detailed commentary for
each expenditure category appears below:

 Employee Costs – Actuals of $16.0m against the YTD budget of $16.4m and equates to 56%
   of the full year budget. This is represented by an under-expenditure of the training allocation
   ($119k), a rebate for Work Cover premiums ($37k), and recovery from labour allocations to
   capital projects exceeding budget.
 Materials and Services – $20.8m (51% of the full year budget) has been expended compared
   to the YTD budget of $21.6m. Year to date variances primarily relate to contract services
   budgets, specifically under expenditure in electricity costs ($79k); insurance costs ($24k);
   Waste operations ($135k); ICT Operations ($116k); Fleet & Plant operations ($64k); Library
   Services ($47k); and Property & Facilities ($70k). Civil Works is below budget ($369k); and
   Planning costs are currently ahead of budget by $234k due to ongoing appeal defence costs.
   Levy related expenses also shows under-expenditure of $72k against YTD budget forecasts.
   All significant variances will be investigated for possible adjustment with the current budget
   review.
 Finance Costs – bank merchant fees ($16k) and interest on loans ($35k) are currently below
   the YTD budget.
 Depreciation expenses – actual depreciation exceeds the YTD budget by $323k. A revised
   forecast will be done as part of the current 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
 $25

                                                      YTD Budget ($m)
 $20
                                                      YTD Actual ($m)
 $15


 $10


  $5


  $0
                         Materials




                                      Finance Costs




                                                                Depreciation
            Employees




                                                                               Other




Capital Revenue

YTD capital revenue of $3.7m received includes $2.4m of cash contributions from developers,
together with $1.3m received as grant funding towards capital projects, including $200k (TIDS);
$153k (Natural Disaster Relief and Recovery); $303k (Rufous Street Project); $75k (Natural
Disaster Resilience Program – Flood studies and flood gauges); $275k (Bus Shelter Disability
Upgrade program); $288k (Cycle Network Program); and $11k Road Safety Grant. Adjustments
will be made as part of the budget review currently underway to account for annual trend and
grant revenue not originally included in the budget.

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