2016-11-14 General Committee Meeting Notes

GENERAL COMMITTEE MEETING AGENDA                                                            14 NOVEMBER 2016


Recurrent Expenditure (YTD Benchmark 33%)

Operating expenditure is currently 32% of the full year budget forecast. Detailed commentary for
each expenditure category appears below:

•         Employee Costs – Actuals of $8.6m against the YTD budget of $8.8m and equates to
          30% of the full year budget. This is represented by an under expenditure YTD of training
          budgets ($85k), a rebate for Work Cover premiums ($37k), and recovery from labour
          allocations to capital projects exceeding budget by $109k.
•         Materials and Services – $12.9m (32% of the full year budget) has been expended
          compared to the YTD budget of $13.4m. Year to date variances relate to contract services
          budgets, specifically under expenditure in insurance costs ($22k); waste management
          ($53k); library services ($20k); and property & facilities ($154k). Civil works is below budget
          ($89k); with planning costs currently ahead of budget by $89k due primarily to legal
          expenses associated with the Noosa Civic appeal.
•         Finance Costs – bank merchant fees ($2k) and interest on loans ($17k) are currently
          below the YTD budget.
•         Depreciation expense - in accordance with YTD budget.
•         Other Expenses – in accordance with YTD budget.

Figure 3: Recurrent Expenditure Position by Type
    $16
    $14
                                                           YTD Budget ($m)
    $12
                                                           YTD Actual ($m)
    $10
    $8
    $6
    $4
    $2
    $0
                                           Finance Costs
                              Materials




                                                                     Depreciation
                Employees




                                                                                    Other




Capital Revenue
YTD capital revenue of $2.5m received includes $1.8m of cash contributions from developers,
together with $750k received as grant funding towards capital projects. Note that the timing of the
receipt of developer contributions is unpredictable, with 103% of the full-year budget already
received. Adjustments will be made as part of the December quarter budget review when trends
will be more apparent.

Capital Expenditure
Actual capital expenditure (excluding commitments) is $3.7 million against the revised full-year
budget of $27 million. Committed expenditure totals a further $6.4 million bringing the total of
actual and committed funds to $10.1 million (37% of the total program). Following a
comprehensive review of all capital projects, a number of changes to the program have been
proposed, which are outlined in a separate report to Council.

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