2016-11-14 General Committee Meeting Notes

GENERAL COMMITTEE MEETING AGENDA                                                                      14 NOVEMBER 2016


Figure 1: Operating Revenue Position by Type (Excluding Rates)
    Grants
    Other




                                                                     YTD Actual ($m)
    Tax




                                                                     YTD Budget ($m)
    Fees Dividend Interest




                 $0.0               $2.0        $4.0       $6.0        $8.0        $10.0    $12.0


Operating Expenditure
Council spent $83.9 million on its operating expenditure compared to the budget of $87.2 million
for the full year. A breakdown on each of Council’s expenditure sources is outlined below:

Table 2: Operating Expenditure Performance by Type

    Revenue Type                                Budget            Actual      Variance
                                                   $m                $m             $m
    Employees                                    $27.6             $27.8           $0.2
    Materials                                    $40.2             $35.7         ($4.5)
    Finance Costs                                 $2.7              $3.3           $0.6
    Depreciation                                 $16.6             $17.0           $0.3
    Total                                        $87.2             $83.8         ($3.4)
Note: Some rounding


•                            Employee Costs – Costs of $27.8m exceeded the $27.6m annual budget by $200k. Whilst
                             overall employee cost management was achieved at an operational level, movements in
                             provisions for annual and long service level provisions resulted in the budget being
                             exceeded (whilst having a negligible impact on current cash flows).
•                            Materials and Services – Actual costs of $35.7m for materials and services were incurred
                             compared to the budget of $40.2m. Of the $4.5m variance approximately $3m related to
                             levy expenditure which is restricted for future use (in particular public transport,
                             environment, heritage, main beach and Hastings St). The remaining positive variances
                             primarily relate to under-expenditure against contract services, in particular savings against
                             ICT costs ($138k); savings against fleet operations associated with lower fuel prices, lease
                             and insurance costs ($500k); waste management landfill and strategy costs ($1.1m).
                             Council did incur over expenditure in some areas in particular arborist services (due to
                             significant numbers of requests), street lighting, ringtail quarry cost of sales (offset by
                             revenue) and Respite Centre contract services.
•                            Finance Costs – Actual finance costs of $3.3m exceeded budget by $600k due to a year
                             end adjustment in the calculation to value Council’s future landfill rehabilitation provision (a
                             non-cash adjustment with the provision fund to be gradually cash backed over the life of
                             the landfill).

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