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

GENERAL COMMITTEE MEETING                                                            12 AUGUST 2024


Proposed Budget Adjustment for Operational Carryovers

The proposed operational carryover budget adjustments will result in a $258k decrease to Council’s
operating position. The following table summarises the operational carryovers by type of funding,
with a detailed list contained in Attachment 1. It is noted that the majority of budget submissions are
grant or levy related programs and projects, where as noted in the previous table funds had already
been received last year. There is no long-term cash flow implication for Council as it is reflective of
timing of spend revenue and expenditure between financial years.

The financial statements in Attachments 3 and 4 also outline the revised budget position.

 Type                          Submissions          Expense           Revenue       Net Movement
                                                     ($’000)            ($’000)            ($’000)
 Grant Funded                        20                1,315                1,190           (125)

 Levy Funded                         1                       4                  -             (4)

 General Revenue Funded              4                   129                    -           (129)

 Total                               25                1,448                1,190           (258)


The $258k in net carryovers will reduce Council’s operating surplus to a $140k deficit. This outcome
is consistent with the outcomes in prior financial years; in comparison for the 2023/24 budget Council
went from a $121k to a $761k deficit in BR1. Future budget reviews during the year (BR2 and BR3),
will capture emergent YTD savings or additional revenue to facilitate mitigation of the budget deficit
with the intent of still achieving a surplus by end of financial year in line with the Financial
Sustainability Policy.

2. Capital Budget Adjustments and Carryovers

Funding Capacity for Capital Carryovers – Prior Year Position

To inform the determination of maximum threshold for capital carryovers, the following table
summarises the 2023/24 full year financial result for the capital works program. It identifies a total
unspent 2023/24 base capital program budget of $13.0 million, which is set as the target ceiling of
funding available for carryover. This ensures that cash reserves are not eroded in accordance with
the Financial Sustainability Policy.

Item                                  Base      Disaster
                                    Program     Program           Total
                                     ($’000)     ($’000)         ($’000)
Current Budget 2023/24 (BR2)          $45,908    $127,350        $173,258

Total Expenditure 2023/24             $32,893    $ 48,663         $81,516

Total Unspent                         $13,015     $ 78,727        $91,742


Proposed Budget Adjustments for Capital Carryovers and Emergent Works

A total of 80 existing projects have been proposed for carryover from the 2023/24 year with a total
value of $13.8 million which is slightly above target ceiling. In addition, a total of 3 variations and
emergent works submissions with a project budget of $0.1 million and 2 multi-year projects
rescheduled to FY 2025/26 with a combined budget of $5.3 million are proposed for inclusion in the
revised budget.