2019-04-15 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                              15 APRIL 2019


8                        BUDGET REVIEW 3 (BR3) 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 third and final budget review for the
2018/19 financial year (BR3) incorporates any new or emergent actions arising from Council
resolutions, Executive Team or Capital Works Executive Committee actions, reallocation of funds
or realised revenue variances since the adoption of the current BR2 budget in November 2018.

In summary, the budget review is proposing an increase of $1.4 million to Council’s operating
position resulting in a revised operating surplus of $1.4 million. The revised capital expenditure
program equates to $28.4 million.

Item                                                   Current Budget         Proposed     Revised Budget
                                                                (BR2)       Adjustments             (BR3)
                                                               ($’000)           ($’000)           ($’000)
Operating Revenue                                             $95,978             ($808)          $95,170
Operating Expenditure                                         $95,961            $2,191           $93,770
Operating Result                                                  $17            $1,383            $1,400
Capital Grants and Contributions Revenue                       $3,375                 $-           $3,375
Capital Works Expenditure                                     $29,815            -$1,424          $28,391


RECOMMENDATION
That Council note the report by the Manager Financial Services to the General Committee
Meeting dated 15 April 2019 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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