BUDGET REVIEW 1 (BR1) FOR THE 2024/25 FINANCIAL YEAR · Report

GENERAL COMMITTEE MEETING                                                          12 AUGUST 2024


RECOMMENDATION
That Council note the report by the Financial Services Manager to the General Committee Meeting
dated 12 August 2024 and approve the proposed changes to the Budget and Schedule of Fees and
Charges for the 2024/25 financial year as outlined in the Revised Budget Financial Statements
provided in Attachments 1 - 5 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.

The key criteria for budget reviews include:
   1. Council must aim for compliance with its Financial Sustainability Policy.
   2. Any eligible capital or operating project must be underway with a commitment to deliver and
      complete the project.
   3. Capital submissions will be reviewed and authorised by the Executive Team before inclusion
      as a budget review submission, where the group will consider justification for the request,
      deliverability as well as organisational and community priorities before endorsing any capital
      works.
   4. All operating and capital submissions for additional spend, reallocation of savings or
      additional revenue will be confirmed by the Executive Team based on business risk
      assessment.

The revised statement of comprehensive income, included as Attachment 4, identifies the financial
statement line items that have been affected by the proposed budget adjustments. The budget
financial statements, included in Attachment 4, also identify the impact of the proposed budget
adjustments to Council’s financial sustainability indicators.

1. Operating Budget Adjustments and Carryovers

Funding Capacity for Operational Carryovers – Prior Year Position

To inform the determination of maximum threshold for operational carryovers, the following table
summarises the 2023/24 draft full year operating financial result. It identifies a $7.8 million surplus
in 2023/24. This surplus provides additional funding for emergent (general rate funded) budget
adjustments and is set as the target ceiling of funding available for carryover. This ensures that cash
reserves are not unnecessarily eroded in accordance with the Financial Sustainability Policy.

                                                                            Actual
 Item                                                                          $m

 General business operating position (unconstrained funds)                   $1.20
 Commercial operations (constrained funds)                                   $5.50
 Unspent levies (constrained funds)                                          $1.10
 Total Council Operating Position                                            $7.80

It should be noted that the Australian Accounting Standards provide guidance on a case-by-case
basis on the accrual accounting recognition of grant revenue to determine whether grant monies are
recognised upon receipt or upon utilisation.