2016-05-16 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                   16 MAY 2016


1.   Operating Budget Adjustments

There have been a number of adjustments to the operating budget proposed, as outlined in
Attachment 1, with an overall improvement in the operating position of $68,644. Requests for
additional expenditure have been fully funded with savings or additional revenue.

Highlighted proposed budget adjustments include:

   Rental income – additional revenue from ferry operations due to favourable weather
     conditions through the summer period.
   Sales Revenue – increased revenue from holiday parks due to favourable weather
     conditions, plus an increase in revenue from gallery operations.
   Grants and subsidies – operating – recognition of additional grant revenue received (offset
     by expenditure) for traineeships undertaken, Home Assist, and community development
     (Active Mums).
   Other recurrent income – additional sales from the purchase and resale of replacement
     bins to Cleanaway in accordance with the contract.
   Employee benefits – adjustments aligning to actual YTD expenditure, including a higher
     allocation of labour costs to capital projects than originally estimated.
   Materials and services – additional expenditure to reflect grants; asset management plan
     development ($72k); minor reallocations between contract services and employee costs;
     adjustments between line items for fleet management; implementation of a proposed Flying
     Fox management plan for Wallace Park ($33k); adjustments within Works Operations
     between gravel roads and quarry operations; and reallocation of operational funding to the
     capital program ($11k NAC and $15k Tewantin Admin building).

2.   Capital Works Program Adjustments

There have been a number of adjustments to the capital works program to reflect emergent
renewal works undertaken and variations across different programs. Details for changes to each
program are outlined in Attachment 2. The total program has increased by $143,680 with no
significant impact expected on the ability to deliver the current program. The majority of
adjustments relate to the reallocation of funding from the Emergent renewals budget to specific
projects, and to also account for savings on completed projects.

Previous Council Consideration

The budget was amended in February 2016 to account for adjustments identified from the
December quarter.

Finance & Risk

There has been a slight increase to the operating result following the budget review, and overall
Council is forecasting a surplus of $950k.

Apart from the $142k in new upgrade projects, changes to the capital program are largely funded
through the rescheduling of projects and redirection from the Emergent Works allocation. Capital
program changes do not impact the operating position, though the forecast cash position is
marginally reduced.

All financial sustainability ratios remain within (or exceed) target ranges, as outlined in the
attached Budget Financial Statements.




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