2016-02-08 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                            8 FEBRUARY 2016


Recurrent Expenditure (YTD Benchmark 58%)

Operating expenditure is currently 54% of the full year budget forecast. Based on current
expenditure patterns Council will keep its expenditure for the full year within budget. Areas with
current YTD material variances will continue to be monitored to ensure that timing variances are
minimised, and for possible adjustments to be made in the March quarter budget review
(although some items have been addressed as part of the December quarter budget review).
Further commentary appears below.

        Employee Costs – Actuals of $15.7m against the YTD budget of $16.3m and equates to
          46% of the full year budget. YTD variances can be attributed in part to the capitalisation of
          Civil Operations staff salaries (where capital works are being performed in house) as well
          as higher rates of capitalisation of planning and design staff costs than budgeted, training
          costs underspent compared to YTD budget, and positive YTD variances for the aquatic
          centre and Noosa community Support.
        Materials and Services – 50% of the full year budget ($19.8m) has been expended
          compared to the YTD budget of $22.0m. Variances generally relate to under expenditure in
          contract services, maintenance and special levies. As with employee costs, all variances
          are subject to ongoing scrutiny.
        Finance Costs – generally in accordance with budget.
        Depreciation expenses are currently running in accordance with budget forecasts.
        Other Expenses – generally in accordance with budget.

Figure 3: Recurrent Expenditure Position by Type

 $25


 $20                                                       YTD Budget ($m)
                                                           YTD Actual ($m)
 $15


 $10


     $5


     $0
                              Materials




                                           Finance Costs




                                                                     Depreciation
                Employees




                                                                                    Other




Capital Revenue

YTD revenue received includes $2.2 million of developer cash contributions (full year budget $1.6
million), together with $1.9 million received for transport infrastructure capital grant funding.
Adjustments were proposed following the December quarter budget review to account for Council
receiving additional grant funding towards capital works and the higher than anticipated
contributions received from developers.




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