2017-04-18 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                    18 APRIL 2017


1.   Operating Budget Adjustments

There are a number of proposed adjustments to the operating budget as outlined in Attachment
1. Requests for additional expenditure have been funded by budget savings or additional
revenue. New initiatives or significant funding requests have been reviewed by the Leadership
Team prior to inclusion in the budget review.

Key elements include:
   Fees & Charges Revenue (extra revenue $397k) – recognition of additional revenue from
     development applications received ($374k); along with increased revenue from parking
     infringements ($23k).
   Interest Received – recognition of higher than anticipated revenue received to date
     ($100k), due to having more cash available for investment.
   Sales revenue (extra revenue $315k) – accounting for revenue received through increased
     activity at the Noosa Aquatic Centre ($50k); recognition of the proceeds from the auction of
     surplus equipment ($47k); and revenue from the sale of recyclables and mulch through
     waste recovery operations ($218k).
   Other recurrent income (extra revenue $93k) – recognition of sale of surplus fleet
     equipment and changes in fleet operations ($14k net); recovery of water charges and
     higher than anticipated rental income ($65k).
   Operating Grants, subsidies and contributions –recognition of additional grant revenue
     received (offset by expenditure) from additional State Library and Community Development
     ($9k); and operational funding ($38k) and a community contribution to Noosa Community
     Support ($15k).
   Employee benefits (additional costs $162k) – adjustments across a range of areas to
     account for casual relief in key operational areas ($73k); extension of the Flying Fox Officer
     to 30 June ($24k); reallocation between employee costs and contract services in
     Community Facilities (-$31k); reallocation from contract services to wages for the waste
     contract development ($37k); recruitment ($12k) and one off costs ($159k) associated with
     the organisation restructure; and the recognition of additional allocation of wages to capital
     projects beyond what was forecast (-$100k operational saving).
   Materials and services (additional costs $291k) – budget reduction for CEO contribution
     towards grants (-$50k); additional consultant and legal services for planning appeals
     ($455k); reduction in the contribution to Noosa Biosphere Reserve Foundation for
     operating costs not required (-$70k); contract services in finance not required (-$26k);
     allocation to Tait House project (-$80k); increase in advertising for vacancies due to level of
     turnover ($19k); purchase of ICT equipment under capitalisation threshold ($34k);
     reallocation from employee costs to cover marketing projects ($31k) increase in operational
     expenses to offset grant income and community contribution Noosa Community Support
     ($54k); building maintenance and improvements at Noosa Community Support ($31k);;
     reduction in budgets for Property & Facilities ($105k net); reallocation from contract
     services to employee costs for waste tender development ($37k); hire of replacement
     loader for quarry ($33k).
   Depreciation – recognise additional depreciation costs ($323k) due to higher than forecast
     revaluation in 2015/16.
   Other recurrent expenditure – reallocation of internal charges between activities for holiday
     parks and works operations ($35k net).
   Other Capital Expenses – recognition of the book loss on disposal of stormwater drainage
     assets replaced inside their useful life ($130k not in original budget).




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