2015-11-16 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                           16 NOVEMBER 2015


REPORT
Recurrent Revenue (Year to date benchmark 33%)

Council has received 46% ($40.5 million) of its recurrent revenue budget of $87.3 million as at
the end of October 2015 with only minor recurrent revenue changes expected in the September
quarter budget review. Commentary on each recurrent revenue type is provided below:
 Rates and Levies – $30.2m (50%) of the annual budget of $60.5m has been recorded.
 Fees and Charges – Fees and charges earned ($2.9m) totals 60% of the full year budget.
    Annual licences, permits and dog registrations have been issued contributing to the positive
    year to date budget position. A number of fee lines are tracking above YTD budget and will
    be monitored to determine if the trend will hold.
 Interest Received – Currently 4.9% above forecast levels due to higher cash balances than
    conservatively estimated for the budget. With speculation over further reductions in interest
    rates, the budget will need to be monitored.
 Dividend and Tax – Dividends and the payment of tax equivalent from Unitywater are in line
    with budget forecasts.
 Other Revenue – Generally in accordance with budget forecasts.
 Grants and Subsidies – Overall receipts for operational grants are in accordance with
    budgeted levels, with additional revenue recognised in the September quarter budget review
    (with matching expenditure).

Figure 2: Recurrent Revenue Position by Type (Excluding Rates)
 $3.5

 $3.0
                                 YTD Budget ($m)
 $2.5
                                 YTD Actual ($m)
 $2.0

 $1.5

 $1.0

 $0.5

 $0.0
                                                      Other
           Fees




                                                                 Grants
                      Dividend




                                            Tax
                                 Interest




Recurrent Expenditure (Year to date benchmark 33%)

Operating expenditure is currently 32% of the full year budget spend. There were moderate
adjustments as part of the budget review, but without impact on the forecast operating result.
Detailed commentary for significant items appears below.
 Employee Costs – Actuals of $8.9m against the YTD budget of $9.1m and equates to 32% of
   the full year budget. Minor adjustments were included as part of the September quarter
   budget review.
 Materials and Services – 32% of budget ($12.4m) has been expended compared to the
   budget of $13.9m. Materials, contract services and legal fees have significant variances lower
   than YTD forecasts and will be monitored.


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