2015-07-21 Planning & Organisation Committee Agenda

PLANNING & ORGANISATION COMMITTEE MEETING AGENDA                                        21 JULY 2015


Recurrent Expenditure

Operating expenditure is currently 92.3% of the full year budget spend with some minor
adjustment expected. The under-spend includes $2.8 million in special levies that will be
constrained for future expenditure, along with genuine savings elsewhere across operational
areas. Detailed commentary for significant items appears below.

 Employee Costs – Actuals of $25.5m equates to 92% of the full year budget being expended.
   A number of vacancies in addition to training costs lagging budgeted expenditure are
   contributing to the positive variance of $1.1m.
 Materials and Services – 86% of budget ($32.9m) has been expended compared to the
   budget of $38.4m. Genuine savings in some areas along with unspent levies and grants has
   contributed to the final result.
 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. A final
   depreciation run will be undertaken once the asset write-on process has been completed
   which may result in additional costs being shown.
 Other Expenses – generally in accordance with budget.

Figure 3: Recurrent Expenditure Position by Type
 $45
 $40
 $35
                                                      YTD Budget ($m)
 $30
                                                      YTD Actual ($m)
 $25
 $20
 $15
 $10
  $5
  $0
                         Materials




                                      Finance Costs




                                                               Depreciation
            Employees




                                                                              Other




Capital Revenue and Expenses

Included in these reporting lines are cash contributions from developers ($1.8 million), plus
recognition of contributed assets of $2.4 million (not originally budgeted). Capital revenue also
includes the proceeds of fleet and plant items sold during the year. Capital expenses represents
accounting treatment to recognise the book value of assets sold or disposed during the year
(disposals including road surfaces that are milled and stockpiled for later re-use).




                                                                                      Page 109 of 140