2017-11-16 Ordinary Meeting Agenda

ORDINARY MEETING AGENDA                                                                       16 NOVEMBER 2017


Program                                                       Original             BR1               BR2          Revised
                                                              Budget                                                Total
Planning Scheme                                           $1,466,000         $253,370          -$77,683         $1,641,687
Public Transport Infrastructure                             $600,000                                             $600,000
Sealed Roads Network                                      $3,510,000       $1,511,371         -$248,000         $4,773,371
Sports Ground and Facilities                                  $53,500          $12,000                            $65,500
Stormwater Drainage                                           $80,000          $69,619      $2,972,570          $3,122,189
Streetscapes and Road Corridors                                                $20,000                            $20,000
Transport and Infrastructure Management                   $2,800,000         $747,121         -$462,194         $3,084,927
Waste Management                                            $114,000                                             $114,000
Environmental Assets, Tracks and Trails                                    $2,117,187                           $2,117,187
Grand Total                                              $24,055,500       $6,934,213       -$2,409,775        $28,579,938

Previous Council Consideration
The 2017/18 budget was adopted by Council resolution on 29 June 2017 (Ref. Special Meeting
Minutes, 29 June 2017, Item 2, Page 3).

Budget review 1 (BR1) adopted by Council resolution on 17 August 2017:
Ordinary Meeting, 17 August 2017, Item 1, Page 15
That Council note the report by the Acting Manager Financial Services to the Ordinary Meeting
dated 17 August 2017 and approve the proposed changes to the budget for the 2017/18 financial
year as outlined in the attached Revised Budget Financial Statements.

Finance
The proposed budget adjustments will impact positively on Council’s financial position, increasing
the operating surplus by $48k to $63k. Council’s 2017/18 budgeted financial sustainability ratios
all remain within the benchmark ranges as per the table below.

Ratio                          Original Budget                   BR1                 BR2
Operating Surplus                           0.3%                0.0%                0.1%
Net Financial Liabilities                   2.4%                8.3%                5.2%
Asset Sustainability                     106.1%              109.5%                98.2%

Operating Surplus Ratio
Measures the extent to which revenues raised cover operational expenses only or are available for capital funding
purposes or other purposes.
Calculation : Net operating result divided by total operating revenue, expressed as a % (excluding capital revenue or
expenses).
Target: between 0% and 10%

Net Financial Liabilities Ratio
Measures the extent to which the net financial liabilities of Council can be repaid from operating revenues.
Calculation: (total liabilities less current assets) divided by total operating revenue, expressed as a %
Target: not greater than 60%

Asset Sustainability Ratio
This ratio reflects the extent to which the infrastructure assets managed by Council are being replaced as they reach
the end of their useful lives.
Calculation: Capital expenditure on the replacement of infrastructure assets (renewals) divided by depreciation
expense, expressed as a %
Target: greater than 90%

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