Meeting papers

GENERAL COMMITTEE MEETING                                                          14 AUGUST 2023



Proposed Budget Adjustment for Operational Carryovers

The proposed operational carryover budget adjustments will result in a $882k decrease to Council’s
operating position. The following table summarises the operational carryovers by type of funding,
with a detailed list contained in Attachment 1. It is noted that the majority of budget submissions are
grant or levy related programs and projects, where as noted in the previous table funds had already
been received last year. There is no long-term cash flow implication for Council as it is reflective of
timing of spend revenue and expenditure between financial years.

The financial statements in Attachments 3 and 4 also outline the revised budget position.

 Type                                   Submissions                Expense             Revenue
                                                                    ($’000)              ($’000)
 Grant Funded                                 15                        635                    -
 Levy Funded                                  2                         237                    -
 General Revenue Funded                       4                          10                    -
 Total                                        21                        882                    -


The $882k in net carryovers will reduce Council’s operating surplus to a $761k deficit. This outcome
is consistent with the outcomes in prior financial years; in comparison for the 2022/23 budget Council
went from a $147k to a $718k 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 2022/23 full year financial result for the capital works program. It identifies a total
unspent 2022/23 budget of $11.5 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)               $54,141
Total Expenditure 2021/22                 $42,596
Total Unspent                             $11,545


Proposed Budget Adjustments for Capital Carryovers and Emergent Works

A total of 82 existing projects have been proposed for carryover from the 2023/24 year with a total
value of $9.8 million. In addition, a total of 3 variations and emergent works submissions with a
project budget of $2.0 million are proposed for inclusion in the revised budget. These variations and
emergent works have primarily been funded through grants and levies.




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