2018-11-12 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                           12 NOVEMBER 2018


8                        BUDGET REVIEW 2 (BR2) FOR THE 2018/19 FINANCIAL YEAR
DOCUMENT INFORM AT ION




Author                            Manager Financial Services, Trent Grauf
                                  Corporate Services Department

Index                             ECM/ Subject/ 7.20 – 2018-2019 Budget

Attachments                       1.   Proposed Operating Budget Submissions
                                  2.   Proposed Capital Budget Submissions
                                  3.   Revised Capital Program
                                  4.   Revised Statement of Income and Expenditure
                                  5.   Revised Budget Financial Statements


EXECUTIVE SUMMARY
The Local Government Act 2009 and Local Government Regulation 2012 require Council to
undertake regular reviews of the adopted budget to ensure it remains reflective of planned
activities to be funded through the financial year. This second budget review for the 2018/19
financial year (BR2) incorporates any new or emergent actions arising from Council resolutions,
Executive Team or Capital Works Executive Committee actions, reallocation of funds or realised
revenue variance since the adoption of the current BR1 budget in August 2018.

In summary the budget review is proposing a marginal increase of $3k to Council’s operating
position resulting in a revised operating surplus of $17k. The revised capital expenditure program
equates to $29.8m.

Item                                                   Current Budget         Proposed       Revised Budget
                                                                (BR1)       Adjustments               (BR2)
                                                               ($’000)           ($’000)             ($’000)
Operating Revenue                                             $95,724              $255             $95,978
Operating Expenditure                                         $95,709              $252             $95,961
Operating Result                                                  $14                $3                 $17
Capital Grants and Contributions Revenue                       $3,375                 $-             $3,375
Capital Works Expenditure                                     $31,241            -$1,426            $29,815

RECOMMENDATION
That Council note the report by the Manager Financial Services to the General Committee
Meeting dated 12 November 2018 and approve the proposed changes to the budget for the
2018/19 financial year as outlined in the Revised Budget Financial Statements attached to the
report.


REPORT
Section 170(3) of the Local Government Regulation 2012 allows Council, by resolution, to amend
the budget at any time before the end of the financial year. Consequently, formal budget reviews
are scheduled to occur during August, November and April using the latest financial information
available as the basis to revise the budget forecast.

The key criteria for budget reviews include:
1.   Council must maintain an operating surplus in the original budget year and ensure financial
     sustainability targets continue to be met.

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