2019-08-12 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                   12 AUGUST 2019


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.

The key criteria for budget reviews include:
1.   Council must ensure compliance with its financial sustainability policy targets.
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 Capital Works Executive 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 $107k decrease to the operating
surplus. The following table summarises the operational carryovers by department and branch,
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 Programs                                6                        -                  98
Contractual & Policy Obligations              2                     1,214             1,223
Total                                         8                     1,214              1,321

2.      Proposed Carryovers - Capital Expenditure Projects
To inform the determination of carryovers, the following table summarises the 2018/19 full year
financial result for the capital works program. It identifies 39 projects for possible carryover with a
total unspent budget of $2.1 million. After allowing for savings, only $2.1 million has been
identified for carryover into the 2019/20 year.

Item                                #        Current    Full Year       Under/       Savings    Proposed
                                             2018/19      Actual        (Over)     Identified   Carryover
                                             Budget       Spend          Spent

                                              ($'000)     ($'000)       ($'000)      ($’000)       ($’000)
Projects Financially Complete      85        $15,605     $15,481            $124      ($124)              $-
Projects Incomplete at 30 June      39       $12,786     $10,640        $2,146         ($26)       $2,120
Total                              124       $28,391     $26,121        $2,270        ($150)       $2,120

In addition, a total of seven emergent works projects with a project budget of $362k are proposed
for inclusion in the revised budget. Overall, this will increase the capital expenditure budget from
$28.4 million to $30.9 million.


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