2016-04-19 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                        19 APRIL 2016


Recurrent Expenditure (YTD Benchmark 75%)

Operating expenditure is currently 70% of the full year budget forecast. Areas of significant
variance continue to be monitored for possible adjustment as part of the March quarter budget
review. Detailed commentary for significant items appears below.

 Employee Costs – Actuals of $20m against the YTD budget of $20.2m and equates to 73% of
   the full year budget. Whilst the total is within the budget, this is actually represented by a
   range of minor variances across operational areas, including staff training, which will continue
   to be monitored.
 Materials and Services – $26m (65%) of the full year budget has been expended compared
   to the YTD budget of $28m. Variances relate to under-expenditure against contract services,
   maintenance, and special levies ($290k). Specifically, there is under-expenditure against
   buildings and facilities maintenance ($164k), with works expected to be undertaken later in
   the year; savings against fleet operations associated with lower fuel prices and savings to
   lease and insurance costs ($311k); Waste operations are currently running under original
   forecasts ($200k); and Civil Operations is currently running approximately $600k behind
   forecast levels. All significant variances will be investigated as part of the March quarter
   budget review.
 Finance Costs – generally in accordance with budget.
 Depreciation expenses are currently running in accordance with budget forecasts.
 Other Expenses – generally in accordance with budget.

Figure 3: Recurrent Expenditure Position by Type
 $30

 $25                                                   YTD Budget ($m)

 $20                                                   YTD Actual ($m)

 $15

 $10

  $5

  $0
                                       Finance Costs
                         Materials




                                                                 Depreciation
            Employees




                                                                                Other




Capital Revenue

YTD capital revenue of $4.9 million received includes cash contributions from developers ($2.2
million), together with $2.6 million received as grant funding towards capital projects.

Capital Works Program

Actual capital expenditure (excluding commitments) is $20.6 million against the current full-year
budget of $35.4 million. Committed expenditure totals a further $6 million bringing the total of
actual and committed funds to $26.6 million (75.3% of the total program). Detailed discussion of
progress in the delivery of the capital works program is provided through a separate report by the
Infrastructure Planning & Design Manager.


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