2016-05-16 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                             16 MAY 2016


Recurrent Expenditure (YTD Benchmark 83%)

Operating expenditure is currently 77% of the full year budget forecast. Detailed commentary for
significant items appears below.

        Employee Costs – Actuals of $22.2m against the YTD budget of $22.4m and equates to
          80% of the full year budget. Whilst the total is within the budget, this is actually represented
          by a range of minor variances across operational areas, including allocation of wages to
          capital projects and staff training, which will continue to be monitored.
        Materials and Services – $28.8m (72%) of the full year budget has been expended
          compared to the YTD budget of $30.9m. Variances relate to under-expenditure against
          contract services, maintenance, and special levies ($451k). Specifically, there is under-
          expenditure against buildings and facilities maintenance ($149k), savings against fleet
          operations associated with lower fuel prices and savings to lease and insurance costs
          ($329k); Waste operations are currently running under original forecasts ($503k); and Civil
          Operations is currently running approximately $98k behind forecast levels (including the
          impact of quarry materials sales). Adjustments have been proposed as part of the March
          quarter budget review.
        Finance Costs – generally in accordance with budget. It is noted that QTC undertake an
          annual review of interest rates against the current market, and have restructured all loans
          effective from 1 April 2016. The outcome has been the conversion of loans from variable
          interest rates to fixed-rate/fixed-term loans with no impact on budget forecasts for the
          current year.
        Depreciation expenses are currently running in accordance with budget forecasts, with
          minor adjustments for assets sold through the year.
        Other Expenses – generally in accordance with budget.

Figure 3: Recurrent Expenditure Position by Type

 $35

 $30
                                                            YTD Budget ($m)
 $25
                                                            YTD Actual ($m)
 $20

 $15

 $10

     $5

     $0
                                            Finance Costs
                              Materials




                                                                      Depreciation
                Employees




                                                                                     Other




Capital Revenue

YTD capital revenue of $5.0 million received includes $2.4 million cash contributions from
developers, together with $2.6 million received as grant funding towards capital projects.




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