2021-08-16 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                     16 AUGUST 2021


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 5, also identify the impact of the proposed budget
adjustments to Council’s financial sustainability indicators.

1.     Operating Budget Adjustments
The proposed operational budget adjustments will result in a $1.0 million 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 funds had already been received in prior years
and there is no long-term cash flow implication for Council (i.e. the expenditure is not recurring or
will be built into the base budget).

The financial statements in Attachments 4 and 5 also outline the revised budget position.

 Type                                       Submissions              Expense             Revenue
                                                                       ($’000)             ($’000)
 Grant Funded                                    17                      1,421               (364)
 Levy Funded                                      1                       161                    -
 General Revenue Funded                           1                         33                   -
 Additional Revenue                               1                          -               (250)
 Total                                            8                      1,616               (614)


2.     Proposed Carryovers - Capital Expenditure Projects
To inform the determination of capital carryovers, the following table summarises the 2020/21 full
year financial result for the capital works program. It identifies a total unspent 2020/21 budget of $6.7
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                                 Amount
                                      ($’000)
Current Budget 2020/21 (BR3)         $31,243
Total Expenditure 2020/21             $24,517
Total Unspent                          $6,725

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