2015-05-26 Planning & Organisation Committee Agenda

PLANNING & ORGANISATION COMMITTEE MEETING AGENDA                                        26 MAY 2015


Recurrent Expenditure

YTD operating expenditure is currently 77% of fully year budget spend compared to the YTD
benchmark of 83%. Detailed commentary for significant items appears below.

 Employee Costs – YTD actuals of $22m equates to 80% of the full year budget being
   expended, compared to the YTD benchmark of 83%. A number of current staff vacancies in
   addition to training costs lagging YTD budgeted expenditure are contributing to the positive
   YTD variance of $0.5m.
 Materials and Services – 71% of YTD budget ($26.9m) has been expended compared to the
   YTD benchmark of 83% ($28.6m). Contract services costs are behind YTD budget levels,
   with significant variances adjusted as part of the March budget review.
 Finance Costs – generally in accordance with budget, and with the credit card surcharge
   applying from January, there has been a favourable impact on the net cost of merchant fees.
 Depreciation expenses are currently running in accordance with budget forecasts.
 Other Expenses – generally in accordance with budget.

Figure 3: Recurrent Expenditure Position by Type
 $35

 $30
                                                       YTD Budget ($m)
 $25
                                                       YTD Actual ($m)
 $20

 $15

 $10

  $5

  $0
                                       Finance Costs
                          Materials




                                                               Depreciation
            Employees




                                                                              Other




Capital Works Program

Year to date capital expenditure (excluding commitments) is $9.4 million against a revised YTD
budget of $15 million. Detailed discussion of progress in the delivery of the capital works program
is now provided monthly to the Infrastructure and Services Committee. The attached schedule of
capital works shows the financial performance detail for each program and project.

Cash Management and Investment Performance

Council funds are invested in accordance with the adopted Investment Policy. Total cash on
hand as at 30 April 2015 was $61.9 million (year-end cash holdings are projected at
approximately $33 million, though this will be increased by any unexpended funds from the
capital works program and special levies). The investment portfolio is balanced across a number
of agencies, as shown in the graph on the left. The graph on the right shows the current risk
profile using industry credit ratings.




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