2014-02-25 Planning & Organisation Committee Meeting Agenda

PLANNING & ORGANISATION COMMITTEE MEETING AGENDA                                  25 FEBRUARY 2014


PREVIOUS COUNCIL CONSIDERATION

Nil.

REPORT

Operating Performance for the month of January has been skewed by the payment of
redundancies to staff transferred from Sunshine Coast Council who were not successful in
obtaining positions within the Noosa Council structure.

Overall financial performance is generally in accordance with original forecasts, with key areas
and exceptions identified below.

1. Operating Revenue

      Rates were levied as planned in the first week in January and issued with a due date of 14
       February 2014. Overall rates revenue is roughly on par with original forecasts, and there is
       the potential for supplementary notices to be issued later in the year.
      The final result for discounts will not be known until after all payments have been processed
       up until the due date.
      Fees and charges revenue is generally in line with forecasts, and will continue to be
       monitored over coming months.
      Interest received is generally in accordance with estimates, although the delay in finalising
       the opening cash position has impacted on returns shown within Noosa Council books.
       However, this will be adjusted on the overall position as part of the final true-up with Sunshine
       Coast.

2.     Operating Expenses

      The figures shown for Employee Benefits are generally in accordance with estimates, with
       redundancy payments offset against the gain on de-amalgamation.
      Materials and Services costs for January are impacted by some delays in the transition of fuel
       and electricity accounts, and also through the timing of payments for lease arrangements,
       etc. The transition to the Noosa Council business model is expected to create real savings
       within this budget line item over coming months.
      Finance costs include accrued interest on external loans with Queensland Treasury
       Corporation, plus merchant and banking fees for agency payment facilities. These elements
       are all in line with original forecasts.

3.     Capital Works Expenditure

      Expenditure on capital works during the month of January was generally in accordance with
       original forecasts. Detailed scheduling of works has been undertaken to give more surety
       around cash flow requirements and resourcing.

4.     Investment Performance

      Council funds are held in operating accounts with the Commonwealth Bank of Australia
       (CBA); with an additional cash management account at the CBA; and a Capital Guaranteed
       Cash Fund account at Queensland Treasury Corporation. The weighted average return for
       January was 3.08%, which compares favourably with the UBS Bank Bill Index (the accepted
       industry benchmark) of 2.67%.
      There were no breaches of Council’s investment policy during the month, and 100% of the
       funds are held with A1+ ranked agencies.


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