2020-08-17 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                   17 AUGUST 2020


The key criteria for budget reviews include:
1.   Council must ensure compliance with its financial sustainability policy targets. Note for the
     2020/21 adopted budget 2 indicators will not be met due to COVID-19 impacts.
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 $394k increase to the operating
deficit. The following table summarises the operational carryovers by type of funding, with a
detailed list contained in Attachment 1. The financial statements in Attachments 4 and 5 outline
the revised budget position as a result of these carryovers.

 Type                                      Submissions              Revenue             Expense
                                                                      ($’000)             ($’000)
 Grant Funded                                    13                       378                 560
 Levy Funded                                     7                                           156
 General Revenue and Reserve Funded              3                                            56
 Total                                           8                        378                772

2.     Proposed Carryovers - Capital Expenditure Projects
To inform the determination of carryovers, the following table summarises the 2019/20 full year
financial result for the capital works program. It identifies a total unspent budget of $5.0 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 2019/20 (BR2)         $30,873
Total Expenditure 2019/20            $25,921
Total                                 $4,978

Consequently, a total of 24 projects have been proposed for carryover from the 2019/20 year with
a total value of $5.0 million.

In addition, a total of 18 emergent works projects with a project budget of $3.3 million are proposed
for inclusion in the revised budget. These emergent works have been primarily funded through
grants and subsidies, including major infrastructure funding of $2.3 million under the Queensland
Government’s Unite and Recover for Queensland Jobs program.



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