2022-01-17 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                   17 JANUARY 2022


5.     BUDGET REVIEW 2 (BR2) FOR THE 2021/22 FINANCIAL YEAR

Author             Manager Financial Services (Acting), Pauline Coles
                   Corporate Services Department

Index              ECM/ Subject/ 7.29 – 2021-2022 Budget

Attachments        1.   Proposed Operating Budget Submissions
                   2.   Proposed Capital Budget Submissions
                   3.   Revised Capital Program
                   4.   Revised Statement of Income and Expenditure
                   5.   Revised Budget Financial Statements


EXECUTIVE SUMMARY
The Local Government Act 2009 and Local Government Regulation 2012 require Council to
undertake regular reviews of the adopted budget to ensure it remains reflective of planned activities
to be funded through the financial year. This second budget review for the 2021/22 financial year
(BR2) incorporates any new or emergent actions arising from Council resolution, Executive Team
or Capital Works Executive Committee action, reallocation of funds or realised revenue variance
since the adoption of the current BR1 budget in August 2021.
In summary the budget review is proposing a net improvement of $61k to Council’s operating
position, resulting in the operating deficit decreasing from $692k to a $631k deficit. This includes
a range of emergent costs that have been funded through additional revenue and grants received
year to date. The capital expenditure program has decreased from $53.7 million down to $48.1
million.

Item                                        Current Budget           Proposed      Revised Budget
                                                     (BR1)         Adjustments              (BR2)
                                                    ($’000)             ($’000)            ($’000)
Operating Revenue                                  107,248               $2,282          $109,530
Operating Expenditure                               107,941             ($2,221)          $110,161
Operating Result                                       (692)                $61             ($631)
Capital Grants and Contributions Revenue            $24,984             ($6,020)           $18,963
Capital Works Expenditure                           $53,694             ($5,615)           $48,079


RECOMMENDATION
That Council note the report by the Manager Financial Services (Acting) to the General Committee
Meeting dated 17 January 2022 and approve the proposed changes to the budget for the 2021/22
financial year as outlined in the revised Budget Financial Statements attached to the report.

REPORT
Section 170(3) of the Local Government Regulation 2012 allows Council, by resolution, to amend
the budget at any time before the end of the financial year. Consequently, formal budget reviews
are scheduled to occur at least twice annually during August and December, and a third in April if
required, using the latest financial information available as the basis to revise the budget forecast.
The key criteria for budget reviews include:
1.     Council must target compliance with its financial sustainability policy.
2.     The eligible capital or operating projects must be delivery-ready with a commitment to
       complete the project during the year.

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