2022-08-15 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                   15 AUGUST 2022


The financial statements in Attachments 4 and 5 also outline the revised budget position.
 Type                                      Submissions               Expense             Revenue
                                                                       ($’000)             ($’000)
 Grant Funded                                    20                        892               (204)
 Levy Funded                                      1                        43                    -
 General Revenue Funded                           3                       133                    -
 Total                                           24                     1,069                (204)


The $865k in net carryovers will reduce Council’s operating surplus to a $713k deficit. This outcome
is consistent with the outcomes in prior financial years; in comparison for the 2021/22 budget
Council went from a $309k to a $692k deficit in BR1. Future budget reviews during the year (BR2
and BR3), will capture emergent YTD savings or additional revenue to ensure the mitigation of any
deficit to achieve a surplus by end of financial year in line with the Financial Sustainability Policy.

2.     Capital Budget Adjustments and Carryovers

Funding Capacity for Capital Carryovers – Prior Year Position

To inform the determination of maximum threshold for capital carryovers, the following table
summarises the 2021/22 full year financial result for the capital works program. It identifies a total
unspent 2021/22 budget of $12.3 million, which is set as the target ceiling of funding available for
carryover. This ensures that cash reserves are not eroded in accordance with the Financial
Sustainability Policy.

Item                                       Amount
                                            ($’000)
Current Budget 2021/22 (BR2)                $48,079
Total Expenditure 2021/22                   $35,702
Total Unspent                               $12,377

In addition, the operating surplus also comprises $3.8 million on unconstrained operating surplus
that is set aside in reserves for funding any emergent capital works.

Proposed Budget Adjustments for Capital Carryovers and Emergent Works

A total of 68 existing projects have been proposed for carryover from the 2021/22 year with a total
value of $11.1 million. In addition, a total of 19 variations and emergent works submissions with a
project budget of $4.0 million are proposed for inclusion in the revised budget. These variations
and emergent works have primarily been funded through grants and subsidies, including
progressive recognition of the community stimulus package grant (SEQCSP), BBRF grant for
McKinnon Drive Sports Complex Stage 2 and a number of recently successful QRA Black Summer
bushfire resilience projects. Many of these are fully funded and require no Council cash
contribution.

The total proposed capital works adjustment is $15.1 million, as outlined in the table below.




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