2017-04-18 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                                     18 APRIL 2017


6                        FEBRUARY BUDGET REVIEW 2016/17
DOCUMENT INFORM AT ION




Author                              Manager Financial Services, Wayne Jensen
                                    Corporate Services Department

Index                               ECM/ Subject/ 7.12: 2016 - 2017 Budget

Attachments                         1.    Proposed Budget Adjustments – Operating
                                    2.    Proposed Budget Adjustments – Capital
                                    3.    Revised Budget Financial Statements


EXECUTIVE SUMMARY
A full review of all operational and capital budgets has been undertaken using actuals as at the
end of January 2017. The Local Government Act 2009 and Local Government Regulation 2012
require Council to undertake regular reviews of the adopted budget to ensure it remains reflective
of planned activities to be funded during the financial year.

RECOMMENDATION
That Council note the report by the Manager Financial Services to the General Committee
Meeting dated 18 April 2017 and approve the requested changes to the budget for the 2016/17
financial year, as outlined in the attached Revised Budget Financial Statements.


REPORT
Section 170(3) of the Local Government Regulation 2012 allows Council, by resolution, to amend
the budget at any time before the end of the financial year. As such, a formal review has been
undertaken using year-to-date figures at 31 January 2017 as the basis for any revised forecasts.

This review provides an opportunity to take account of any additional information that has come
to light since the last review and to ensure the most accurate figures are included in the year-end
forecast.

The Revised Budget Financial Statements clearly identify statement line items that have been
affected by the proposed adjustments, and include the impact of the adjustments on the 10-year
financial forecast.

Key considerations for Council’s budget adjustments include:

                       All increases in operating expenditure should be funded to ensure compliance with the
                         financial sustainability policy. If variances cannot be funded at the branch or departmental
                         level, then operational savings, determined after collaboration with other departments,
                         should be identified to ensure no degradation in the overall operating position for Council.

                       Proposed reallocation of savings or additional revenue will be confirmed by the Leadership
                         Team.

                       The capacity to deliver the adopted works program has been considered as part of the
                         evaluation process for all projects.




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