2017-01-16 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                       16 JANUARY 2017


Recurrent Expenditure (YTD Benchmark 50%)

Operating expenditure is currently 47% of the full year budget forecast. Detailed commentary for
each expenditure category appears below:

 Employee Costs – Actuals of $13.8m against the YTD budget of $14.2m and equates to 48%
   of the full year budget. This is represented by an under-expenditure of the training allocation
   ($103k), a rebate for Work Cover premiums ($37k), and recovery from labour allocations to
   capital projects exceeding budget.
 Materials and Services – $18.0m (44% of the full year budget) has been expended compared
   to the YTD budget of $18.8m. Year to date variances primarily relate to contract services
   budgets, specifically under expenditure in electricity costs ($71k); insurance costs ($20k);
   Waste operations ($81k); ICT Operations (70k); Fleet & Plant operations ($25k); Library
   Services ($20k); and Property & Facilities ($122k). Civil Works is below budget ($417k); and
   Planning costs are currently ahead of budget by $212k due to ongoing appeal defence costs.
   Levy related expenses also shows under-expenditure of $169k against YTD budget forecasts.
   All significant variances will be investigated for possible adjustment with the mid-year budget
   review.
 Finance Costs – bank merchant fees ($6k) and interest on loans ($35k) are currently below the
   YTD budget.
 Depreciation expenses – actual depreciation exceeds the YTD budget by $239k. A revised
   forecast will be done as part of the December quarter budget review to account for a higher
   than anticipated impact of asset revaluations undertaken as at 30 June 2016.
 Other Expenses – in accordance with YTD budget.

Figure 3: Recurrent Expenditure Position by Type
 $20
 $18
                                                      YTD Budget ($m)
 $16
 $14                                                  YTD Actual ($m)
 $12
 $10
  $8
  $6
  $4
  $2
  $0
                         Materials




                                      Finance Costs




                                                                Depreciation
            Employees




                                                                               Other




Capital Revenue

YTD capital revenue of $3.0m received includes $2.3m of cash contributions from developers,
together with $774k received as grant funding towards capital projects. Adjustments will be made
as part of the budget review currently underway to account for annual trend.




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