2017-11-16 Ordinary Meeting Agenda

ORDINARY MEETING AGENDA                                                      16 NOVEMBER 2017


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.
2.   Increases in operating expenditure should be funded wherever possible through additional
     revenue. Where this funding is not possible at the branch or departmental level, then
     operational savings should be identified to ensure no reduction in the overall operating
     position for Council.
3.   Capital submissions will be reviewed and authorised by the Capital Works Executive group
     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 Leadership 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 through a revised 10-year
financial forecast.

1.     Operating Budget Adjustments
The budget review includes a number of proposed adjustments to Council’s operating revenue
and expenditure budget for 2017/18. All requests have been reviewed by the Leadership Team
prior to inclusion in the budget review. The following points summarise the key operational
budget requests, with a detailed list contained in Attachment 1:
    Emergent: Expenditure of an emergent nature to ensure staff and community wellbeing
     including repairs to the North Shore Ferry amenities block, additional water consumption
     costs relating to a water leak, and decommissioning of old fuel tanks at Council’s depots.
    Organisational: Cost increases associated with the new public amenities cleaning contract,
     insurance premiums, Christmas tree lighting, additional State Emergency levies on Council
     properties and additional staff costs for the building and facility branch after hours on-call
     service.
    Unfunded Initiatives: These include the Commonwealth Games baton relay, investigations
     into developing a Noosa Institute of Sustainability, a special event recognising WH&S efforts
     by staff and investigation into algal blooms on Noosa Main Beach.
    Funded Initiatives: Such as a range of subsidy and grant funded programs including the
     Difficult to Local Sports Plan, Behind Queensland’s Words, Cooroy Library Maker Space,
     Tech Savvy Seniors, Economic Development Innovation Program, a planning census data
     improvement project and a new Local Laws trainee.
    Additional Revenue: Increased revenue has been identified from funding received to
     reimburse 2016/17 costs relating to the ex TC Debbie clean-up, the take up of general rates
     revenue received above budget in the July levy, interest revenue above budget, NAC fitness
     program revenue and building and plumbing search fees being above budget expectations.


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