Notice of Meeting
Finance Advisory Committee Meeting
A Finance Advisory Committee Meeting of Byron Shire Council will be held as follows:
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Venue |
Conference Room, Station Street, Mullumbimby |
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Date |
Thursday, 18 February 2016 |
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Time |
2.00pm |
Mark Arnold
Director Corporate and Community Services I2016/113
Distributed 12/02/16
CONFLICT OF INTERESTS
What is a “Conflict of Interests” - A conflict of interests can be of two types:
Pecuniary - an interest that a person has in a matter because of a reasonable likelihood or expectation of appreciable financial gain or loss to the person or another person with whom the person is associated.
Non-pecuniary – a private or personal interest that a Council official has that does not amount to a pecuniary interest as defined in the Local Government Act (eg. A friendship, membership of an association, society or trade union or involvement or interest in an activity and may include an interest of a financial nature).
Remoteness – a person does not have a pecuniary interest in a matter if the interest is so remote or insignificant that it could not reasonably be regarded as likely to influence any decision the person might make in relation to a matter or if the interest is of a kind specified in Section 448 of the Local Government Act.
Who has a Pecuniary Interest? - a person has a pecuniary interest in a matter if the pecuniary interest is the interest of the person, or another person with whom the person is associated (see below).
Relatives, Partners - a person is taken to have a pecuniary interest in a matter if:
§ The person’s spouse or de facto partner or a relative of the person has a pecuniary interest in the matter, or
§ The person, or a nominee, partners or employer of the person, is a member of a company or other body that has a pecuniary interest in the matter.
N.B. “Relative”, in relation to a person means any of the following:
(a) the parent, grandparent, brother, sister, uncle, aunt, nephew, niece, lineal descends or adopted child of the person or of the person’s spouse;
(b) the spouse or de facto partners of the person or of a person referred to in paragraph (a)
No Interest in the Matter - however, a person is not taken to have a pecuniary interest in a matter:
§ If the person is unaware of the relevant pecuniary interest of the spouse, de facto partner, relative or company or other body, or
§ Just because the person is a member of, or is employed by, the Council.
§ Just because the person is a member of, or a delegate of the Council to, a company or other body that has a pecuniary interest in the matter provided that the person has no beneficial interest in any shares of the company or body.
Disclosure and participation in meetings
§ A Councillor or a member of a Council Committee who has a pecuniary interest in any matter with which the Council is concerned and who is present at a meeting of the Council or Committee at which the matter is being considered must disclose the nature of the interest to the meeting as soon as practicable.
§ The Councillor or member must not be present at, or in sight of, the meeting of the Council or Committee:
(a) at any time during which the matter is being considered or discussed by the Council or Committee, or
(b) at any time during which the Council or Committee is voting on any question in relation to the matter.
No Knowledge - a person does not breach this Clause if the person did not know and could not reasonably be expected to have known that the matter under consideration at the meeting was a matter in which he or she had a pecuniary interest.
Participation in Meetings Despite Pecuniary Interest (S 452 Act)
A Councillor is not prevented from taking part in the consideration or discussion of, or from voting on, any of the matters/questions detailed in Section 452 of the Local Government Act.
Non-pecuniary Interests - Must be disclosed in meetings.
There are a broad range of options available for managing conflicts & the option chosen will depend on an assessment of the circumstances of the matter, the nature of the interest and the significance of the issue being dealt with. Non-pecuniary conflicts of interests must be dealt with in at least one of the following ways:
§ It may be appropriate that no action be taken where the potential for conflict is minimal. However, Councillors should consider providing an explanation of why they consider a conflict does not exist.
§ Limit involvement if practical (eg. Participate in discussion but not in decision making or vice-versa). Care needs to be taken when exercising this option.
§ Remove the source of the conflict (eg. Relinquishing or divesting the personal interest that creates the conflict)
§ Have no involvement by absenting yourself from and not taking part in any debate or voting on the issue as if the provisions in S451 of the Local Government Act apply (particularly if you have a significant non-pecuniary interest)
RECORDING OF VOTING ON PLANNING MATTERS
Clause 375A of the Local Government Act 1993 – Recording of voting on planning matters
(1) In this section, planning decision means a decision made in the exercise of a function of a council under the Environmental Planning and Assessment Act 1979:
(a) including a decision relating to a development application, an environmental planning instrument, a development control plan or a development contribution plan under that Act, but
(b) not including the making of an order under Division 2A of Part 6 of that Act.
(2) The general manager is required to keep a register containing, for each planning decision made at a meeting of the council or a council committee, the names of the councillors who supported the decision and the names of any councillors who opposed (or are taken to have opposed) the decision.
(3) For the purpose of maintaining the register, a division is required to be called whenever a motion for a planning decision is put at a meeting of the council or a council committee.
(4) Each decision recorded in the register is to be described in the register or identified in a manner that enables the description to be obtained from another publicly available document, and is to include the information required by the regulations.
(5) This section extends to a meeting that is closed to the public.
BYRON SHIRE COUNCIL
Finance Advisory Committee Meeting
2. Declarations of Interest – Pecuniary and Non-Pecuniary
3. Adoption of Minutes from Previous Meetings
3.1 Finance Advisory Committee Meeting held on 12 November 2015
4. Business Arising From Previous Minutes
5. Staff Reports
Corporate and Community Services
5.1 2015/16 Financial Sustainability Project Plan - Update on the Action Implementation Plan as at 31 December 2015................................................................................................................. 4
5.2 Budget Review - 1 October 2015 to 31 December 2015............................................... 22
Staff Reports - Corporate and Community Services 5.1
Staff Reports - Corporate and Community Services
Report No. 5.1 2015/16 Financial Sustainability Project Plan - Update on the Action Implementation Plan as at 31 December 2015
Directorate: Corporate and Community Services
Report Author: Mark Arnold, Director Corporate and Community Services
File No: I2016/33
Theme: Corporate Management
Financial Services
Summary:
Council at its Ordinary meeting held on 10 December 2015 adopted the Financial Sustainability Plan (FSP) 2015/2016 via Resolution 15-606.
The FSP adopted by Council is for the 2015/16 Financial Year and details the strategic approach adopted by Council for managing the Financial Sustainability of the Council as an organisation.
The Council via Resolution 13-148 resolved to develop the FSP as a means of communicating with the community on proposed reforms.
Council in Resolution 13-148 also determined that progress reports on the implementation of the actions within the FSP be submitted to the Council's Finance Advisory Committee.
This report has been prepared to provide the Finance Advisory Committee with an update report on the implementation of the actions in the 2015/16 FSP Plan, for the period to 31 December 2015.
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RECOMMENDATION: That the Finance Advisory Committee recommend to Council:
That the update report to 31 December 2015 on the 2015/2016 Financial Sustainability Project Plan Action Implementation Plan (E2015/84711) be received and noted.
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1 FSP Action Implementation Plan Updates as at 31 December 2015, E2015/84711 , page 7
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Report
Council at its Ordinary meeting held on 10 December 2015 adopted the Financial Sustainability Plan (FSP) 2015/2016 via Resolution 15-606.
The FSP adopted by Council is for the 2015/16 Financial Year and details the strategic approach adopted by Council for managing the Financial Sustainability of the Council as an organisation.
The Council via Resolution 13-148 resolved to develop the FSP as a means of communicating with the community on proposed reforms.
Council in Resolution 13-148 also determined that progress reports on the implementation of the actions within the FSP be submitted to the Council's Finance Committee.
This report has been prepared to provide the Finance Advisory Committee with an update report on the implementation of the actions in the 2015/16 FSP, for the period to 31 December 2015.
A summary of the actions detailed in the FSP has been prepared and attached to this Report at Attachment 1. A comment has been included in the summary against each of the identified actions for the main areas or elements being:
· Expenditure Review
· Revenue Review
· Land Review and Property Development
· Strategic Procurement
· Policy and Decision Making
· Potential Commercial Opportunities
· Volunteerism
· Collaborations and Partnerships
· Asset Management
· Long Term Financial Planning
· Performance Indicators
Financial Implications
The Finance Advisory Committee by referencing Attachment 1 will see progress against various action items associated with the FSP. In terms of actual financial outcomes, at this point for the 2015/2016 financial year, the following savings or new revenue have been identified since the last update report to the Finance Advisory Committee with this report covering outcomes from both the September 2015 and December 2015 Quarter Budget Reviews:
September 2015 Quarter Budget Review
There were no financial outcomes recognised in the September 2015 Quarter Budget Review given it is the first budget review for the 2015/2016 financial year that was considered by Council in November 2015.
December 2015 Quarter Budget Review
1. A review of the expenditure actuals associated with a number of Information Technology licences has been undertaken which has realised $21,400 in estimated expenditure savings. It is proposed to reallocate these savings to expenditure allocated for Information Technology Strategic Plan Actions which are about enhancing Council’s Information Technology capacity.
2. The December 2015 Quarter Budget Review has provided an opportunity to propose adjustments to the 2015/2016 Budget Estimates in relation to the amount recognised for sale of the Roundhouse subdivision and to account for costs associated with the sale. These adjustments are included in the proposed budget review including increasing the sale proceeds budget to reflect sale proceeds received.
Whilst the outcomes identified in point 1 to 2 above are proposed to be reallocated, they provide Council with the ability to enhance capacity and resources without incurring additional cost. These items have been incorporated into the 2015/2016 Budget Estimates pending Council approval of the 31 December 2015 Quarter Budget Review to be presented to Council on 25 February 2016 and for the Finance Advisory Committee to consider at this Meeting.
It is also more prudent that any positive financial outcomes derived from actions of the FSP be based on actual outcomes and not estimated outcomes. In that regard, the financial reporting of outcomes of the FSP will be in arrears, once the outcomes are known and actions in the FSP are completed.
Further reporting will be provided to the Finance Advisory Committee at future meetings on financial outcomes. This will be done in conjunction the Quarterly Budget Review (QBR) reporting process over the 2015/2016 financial year according to Resolution 14-326. A register has been developed to track the financial outcomes of the FSP actions that is envisaged will derive an improved quantifiable financial sustainability outcome overall to Council.
Statutory and Policy Compliance Implications
Council Resolutions 13-148, 13-238, 14-326 and 15-606.
The development of the FSP can also be considered as a tool to assist Council in its ongoing obligations as defined in Section 9 (The Council’s charter), Section 8 of the Local Government Act 1993.
BYRON SHIRE COUNCIL
Staff Reports - Corporate and Community Services 5.1 - Attachment 1
Strategy Element: Expenditure Review
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Actions |
Action Owner |
Action Due Date |
Management Comments |
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1. Recommendations on expenditure savings or efficiency gains identified by responsible staff reported to the Executive Team. |
DC&CS |
June 2016 |
Progress Update (31 December 2015) Reports are prepared following the quarterly Strategic Procurement Steering Committee meetings to the ET and responsible Managers The reports include recommendations for potential savings or efficiency gains from Contracts tendered by Council or the NOROC Procurement Group, and recommendations on Contracts that should be developed and Tendered by Council. In the last quarter Council participated in a regional Contract for Water Chemicals. Contracts developed and to be tendered or awarded in the March Quarter include Cash handling, Security Services and Contract Mowing.
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2. Monthly Management Finance Reports provided to the Executive Team. |
DC&CS |
Monthly |
Progress Update (31 December 2015) Monthly Management Finance Reports are prepared by the Finance Manager and considered by the Executive Team at the monthly Performance Management meeting held on the second Wednesday of each month.
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3. Monthly Management Finance Reports provided to Councillors. |
DC&CS |
Monthly |
Progress Update (31 December 2015) A copy of the Monthly Management Finance Report is distributed by the Director Corporate and Community Services to Councillors on the Friday following the Executive Team Performance Management meeting. The version of the Monthly Management Finance Report distributed Councillors is in accordance with the template adopted by Council for the monthly report.
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4. Progress reports to the Finance Committee on the implementation of the adopted FSP actions. |
DC&CS |
Quarterly |
Progress Update (31 December 2015) The 2015/16 was adopted by Council at its ordinary meeting held on 10 December 2015 (refer Resolution 15-606). This is the first progress report prepared for the Finance Committee updating the Committee on the progress of implementing the adopted actions. |
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5. Report to Council through the Quarterly Budget Review any identified expenditure savings. |
DC&CS |
Quarterly |
Progress Update (31 December 2015) Any identified expenditure savings are as detailed in the separate December 2015 Quarterly Budget Review Report to this meeting of the Finance Committee. |
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6. Report to Council any recommendations regards policy changes. |
DC&CS |
As Required |
Progress Update (31 December 2015) The ET during the quarter considered a report on Council’s adopted Policies. This Report identified the Policies that are both operational and financially restrictive and are to be reviewed and reported to Council. The Policies identified for review have been prioritised by the Executive Team, and the Manager Governance has been allocated the responsibility for co-ordinating the review process, including the reporting of the Policies to Council. |
Strategy Element: Revenue Review
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Actions |
Action Owner |
Action Due Date |
Management Comments |
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1. Internal Staff Working Groups to report to the Executive Team on the progress achieved on the implementation of their specific initiative/s. |
DC&CS |
June 2016 |
Progress Update (31 December 2015) During the quarter the main focus has been on the implementation of the Pay Parking Scheme for the Byron bay CBD. Progress Status reports have provided on a weekly basis to the Executive Team, with the Internal Working Team also meeting on a weekly basis. The Tyagarah Airport Internal Working Group has been meeting on monthly basis, with monthly reports being provided to the Executive Team. Both projects are included in the weekly critical projects update to Councillors. |
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2. Internal Staff Working Group/staff to report to the Executive Team any proposed opportunities for deriving new/additional revenue/ |
DC&CS |
30 June 2016 |
Progress Update (31 December 2015) See above comments.
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3. Report to the Finance Committee and/or the Council any proposed opportunities for deriving new/additional revenue. |
DC&CS |
Quarterly |
Progress Update (31 December 2015) Reported as required.
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4. Report to Council any recommendations regarding policy change and/or increases to existing or new revenue sources. |
DC&CS |
June 2016 |
Progress Update (31 December 2015) Refer comments provided to Action 6 in the Expenditure Review.
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5. Prepare submissions and lobby for grant funding for major capital works projects. |
DC&CS |
June 2016 |
Progress Update (31 December 2015) The main focus in this area for the quarter has been in seeking funding for the replacement of rural bridges, with the lodgement of funding applications to the Federal Government. This process including lobbying for additional funds has been carried over into the current quarter and the next round of funding.. |
Strategy Element: Land Review and Property Development
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Actions |
Action Owner |
Action Due Date |
Management Comments |
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General Fund |
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1. Roundhouse – Complete sale. |
DIS |
Complete |
Progress Update (31 December 2015) Following an unsuccessful court challenge by OSCA, sale of the subdivision has been finalised |
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2. Lot 12 Bayshore Drive – Complete clean up contract and finalise land contamination status. |
DIS |
June 2016 |
Progress Update (31 December 2015) The contractor, Brisbane Screenings will commence processing the spoil stock pile following EPA approval.
Fencing of the site has been completed.
Geotechnical advice has been obtained to guide the reuse and filling process. |
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3. Station Street – Subject to S96 approval and viability, complete the subdivision. |
DIS |
June 2016 |
Progress Update (31 December 2015) Council has resolved to retain the fig tree and work with North Coast Community Housing on options.
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4. Yaran Road, Tyagarah Airfield –DA completion and approval. Commercial assessment and potential works. |
DIS |
June 2016 |
Progress Update (31 December 2015) Subdivision planning and planning proposal underway
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5. Lot
22 Mullumbimby – DA development. |
DIS |
June 2016 |
Progress Update (31 December 2015) The option of an educational facility was carefully assessed but the necessary rezoning would be precluded due to the flood status of the land. Further options compatible with the current zoning will be considered. |
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6. Bayshore
Drive Works Depot, |
DIS |
June 2016 |
Progress Update (31 December 2015) Project on hold whilst the details of the review of depot services are finalized.
Options may exist to spread operations across some of the sewer fund sites.
There may be surplus RMS land that could be suitable. |
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Water Fund |
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7. Fletcher Street – Business case and resolve preferred development model. DA preparation and approval. |
DIS |
June 2016 |
Progress Update (31 December 2015) Consultant architect Dominic Finlay Jones has been engaged to prepare a brief and manage the process of Architectural preparation of concept plans, economical analysis and subsequent recommendations to Council. |
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Sewer Fund |
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8. South Byron STP – Future option determination. Start remediation and rezoning. |
DIS |
June 2016 |
Progress Update (31 December 2015) The contract for demolition of the old STP structures is complete.
The next stage of site decontamination is dependent on determination of the proposed future use of the site.
Work is progressing on options for the future use |
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9. Brunswick Heads STP – Start demolition and remediation. |
DIS |
June 2016 |
Progress Update (31 December 2015) A contract has been awarded for the environmental and contamination assessments |
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10. Brunswick Valley STP, Vallances Road – Complete rural settlement strategy review. |
DIS |
June 2016 |
Progress Update (31 December 2015) Future subdivision options will possibly be influenced by the new Rural Land Use Strategy once completed. This site is also potentially linked to the Lot 4 Mullumbimby site for development considerations |
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11. Bangalow STP – Complete rural settlement strategy review. |
DIS |
June 2016 |
Progress Update (31 December 2015) Contingent upon completion of the Rural Land Use Strategy. |
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12. Lot 4 Mill Street – Complete rural settlement strategy. |
DIS |
June 2016 |
Progress Update (31 December 2015) Contingent upon completion of the Rural Land Use Strategy and potential development of the Vallances Rd property. |
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13. Various small surplus land parcels – Commence sale program. |
DIS |
June 2016 |
Progress Update (31 December 2015) Work is progressing on available options. |
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Waste Fund |
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14. Lots 3 and 29 Manse Road – Complete assessment of quarry landfill/resource recovery options. |
DIS |
June 2016 |
Progress Update (31 December 2015) The assessment was completed and due to the proximity of the ongoing operational waste and transfer facility, it is not viable to sell these properties. The potential relocation of the ridgeline operations into the adjacent quarry would reduce the issues of noise, odour and dust. |
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15. Lot 15 Dingo Lane, Myocum – Complete assessment of quarry landfill/resource recovery options. |
DIS |
June 2016 |
Progress Update (31 December 2015) The EPA response to the EIS and the requirement for extensive additional investigative work prompted a strategic review of the project. The EIS has been withdrawn and a report will now be prepared for the Water, Sewer & Waste Advisory Committee recommending an alternative way forward. |
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16. Lot 16 Dingo Lane, Myocum – Complete assessment of quarry landfill/resource recovery options. |
DIS |
June 2016 |
Progress Update (31 December 2015) The EPA response to the EIS and the requirement for extensive additional investigative work prompted a strategic review of the project. The EIS has been withdrawn and a report will now be prepared for the Water, Sewer & Waste Advisory Committee recommending an alternative way forward. |
Strategy Element: Strategic Procurement
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Actions |
Action Owner |
Action Due Date |
Management Comments |
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1. Develop contracts management guidelines and processes. |
DC&CS |
June 2016 |
Progress Update (31 December 2015) Contract Management Guideline and templates complete and issued for consultation and feedback
Progressing
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2. Develop annual procurement plan. |
DC&CS |
June 2016 |
Progress Update (31 December 2015) Annual Procurement Plan developed and endorsed by the Executive Team
Complete
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3. Develop and implement priority contracts program. |
DC&CS |
June 2016 |
Progress Update (31 December 2015) Priority contracts program developed with Annual Procurement Plan, based on spend analysis data.
Complete
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4. Detailed spend analysis and reporting. |
DC&CS |
June 2016 |
Progress Update (31 December 2015) Initial spend analysis conducted, with further reporting tools to be developed on implementation of new Authority Software Modules
Ongoing
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5. Implement ongoing procurement and contract management training program. |
DC&CS |
June 2016 |
Progress Update (31 December 2015) Preparations underway for second half of the year to implement follow-up contract management and procurement training
Progressing
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6. Implement targeted program to reduce invoice numbers and transaction costs. |
DC&CS |
June 2016 |
Progress Update (31 December 2015) Preparations underway with Finance and Business Units targeting consolidated billing for high volume transaction suppliers.
Ongoing
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7. Develop social and sustainable procurement and economic development plan. |
DC&CS |
June 2016 |
Progress Update (31 December 2015) Preparations underway, with Community Development, Sustainability, and Economic Development Team to develop and implement documentation, measures and programs.
Ongoing
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8. Review purchase to pay process. |
DC&CS |
June 2016 |
Progress Update (31 December 2015) No action this quarter
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9. Implement purchasing cards for low value high volumed transactions. |
DC&CS |
June 2016 |
Progress Update (31 December 2015) No action this quarter
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Strategy Element: Policy and Decision Making
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Actions |
Action Owner |
Action Due Date |
Management Comments |
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1. Council continue to consider the short, medium and long term financial impacts and the context of Council’s long term financial sustainability in its ongoing policy and decision making processes. |
Finance Manager |
June 2016 |
Progress Update (31 December 2015) The Finance Manager undertakes a review of the reports to Council on a monthly basis and provides comments to Report Writers and the Executive Team on the financial implications. Comments are included in the reports for consideration of Council in the decision making process. Resolutions impacting on budgets are considered in the QBR process and then included in the financial modelling used for the preparation of the LTFP. |
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2. That any unspent budget votes from the 2014/15 budget recommended to be carried over to the 2015/16 Budget be reported to Council following the end of the 2014/15 Financial Year. |
Council |
June 2016 |
Progress Update (31 December 2015) This item is complete. Carryovers from 2014/2015 to be added to the 2015/2016 were considered by the Finance Advisory Committee at its Meeting held 20 August 2015. These were later endorsed by Council at its Ordinary Meeting held 27 August 2015 (Resolution 15-386). |
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3. That the monthly Finance Report be distributed to Councillors on a monthly basis. |
Finance Manager |
June 2016 |
Progress Update (31 December 2015) A copy of the Monthly Management Finance Report is distributed by the Director Corporate and Community Services to Councillors on the Friday following the Executive Team Performance Management meeting. The version of the Monthly Management Finance Report distributed Councillors is in accordance with the template adopted by Council for the monthly report. |
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4. That policies that contain wording or provisions that are considered to be restrictive be reviewed to incorporate enabling wording and guidelines for Council’s consideration and approval. |
DC&CS |
June 2016 |
Progress Update (31 December 2015) The ET during the quarter considered a report on Council’s adopted Policies. This Report identified the Policies that are both operational and financially restrictive and are to be reviewed and reported to Council. The Policies identified for review have been prioritised by the Executive Team, and the Manager Governance has been allocated the responsibility for co-ordinating the review process, including the reporting of the Policies to Council. |
Strategy Element: Potential Commercial Opportunities
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Actions |
Action Owner |
Action Due Date |
Management Comments |
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1. Management will progressively prepare and submit to Council reports on any potential commercial opportunities and ventures identified in the Masterplan for the Byron Bay Town Centre. |
ET |
June 2016 |
Progress Update (31 December 2015) The draft Byron Bay Town Centre Master Plan (BBTCMP) is being reported to Council at its Ordinary meeting scheduled for 25 February 2016. This report is recommending that the Draft BBTCMP be placed on public exhibition and that following the exhibition period that the submissions received be considered by Council prior to the adoption of the final BBTCMP. This action is pending the adoption of the final BBTCMP. |
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2. Management to prepare and submit to Council reports on any potential commercial opportunities and ventures when identified for any other specific projects such as: a) Future management and development of the Tyagarah Aerodrome b) Development of Byron Bay Swimming Pool/Café c) Redevelopment of the old Fletcher Street Library building. |
DIS
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June 2016 |
Progress Update (31 December 2015)
a) Future management and development of the Tyagarah Aerodrome · Plan Commenced · OLS treatment works being procured · Subdivision planning underway · New agreement in place with Skydive Aust. · EOI for Tyagarah Hall lease out to 21/1/16 · Aircraft movement monitoring systems being explored · Rec Club & Hanger assessments underway
b) Development of Byron Bay Swimming Pool/Café – This project was the subject of a meeting between Council and DPI – Lands representatives in December. Council has prepared and provided DPI – Lands a draft MoU for the rationalisation of the land tenure at this location. Following the meeting Council is awaiting from DPI – Lands its comments on this document. The site is also included in the short and longer term actions for the Main Beach area in Byron Bay in the draft Byron Bay Town Centre Master Plan (BBTCMP).
c) Redevelopment of the old Fletcher Street Library building - Consultant architect Dominic Finlay Jones has been engaged to prepare a brief and manage the process of Architectural preparation of concept plans, economical analysis and subsequent recommendations to Council. |
Strategy Element: Volunteerism
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Actions |
Action Owner |
Action Due Date |
Management Comments |
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1. Council to hold a volunteer recognition event, and two networking/information sessions for Section 355 Management Committees. |
Manager Community Development |
June 2016 |
Progress Update (31 December 2015) Council will host a volunteer recognition event as part of National Volunteer Week in May 2016. Two networking/information sessions for s355 Management Committees will be held prior to EOFY. |
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2. Council will update, promote and increase the number of participants on the Volunteer Register. |
ET |
June 2016 |
Progress Update (31 December 2015) Council will continue to update the Volunteer Register and will promote volunteerism through existing community and business networks and as part of National Volunteer Week 2016.
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3. Management will progressively prepare and submit to Council reports on the areas of volunteerism. |
ET |
June 2016 |
Progress Update (31 December 2015) The community development branch are finalising the section restructure to incorporate opportunities for volunteer innovation and enterprise programs.
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Strategy Element: Collaborations and Partnerships
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Actions |
Action Owner |
Action Due Date |
Management Comments |
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1. Management will progressively prepare and submit to Council reports on any potential opportunities for a collaboration or partnership. |
ET |
June 2016 |
Progress Update (31 December 2015) Councils Community Development branch during the quarter commenced project that is seeking to work collaboratively with State and Federal governments to undertake a service mapping exercise and identify opportunities for collaboration and partnership across the region.
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Strategy Element: Asset Management
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Actions |
Action Owner |
Action Due Date |
Management Comments |
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1. Prepare an infrastructure report for the Fit for Future program. |
DIS |
June 2016 |
Progress Update (31 December 2015) This was completed and submitted as part of the submission to the State Government |
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2. Revalue community land, other assets and land improvements to support Fit for Future reporting. |
DIS |
June 2016 |
Progress Update (31 December 2015) This project is currently on track with detailed asset validation almost complete
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3. Implement the newly completed asset service plans to address Fit for Future program priorities. |
DIS |
June 2016 |
Progress Update (31 December 2015) A draft strategic asset management plan has been completed and will be reported to the March Community Infrastructure Advisory Committee meeting |
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4. Improve the level of asset information to better assist decision making and focus the deployment of asset management resources. |
DIS |
June 2016 |
Progress Update (31 December 2015) Validation of the Asset Register templates is progressing. Work on Parks & Other Structures will be a priority in 2016 in alignment with the scheduled revaluation. Improved reporting capability has been developed with the Asset Register and Work Orders. There has been ongoing training of IS users with the Asset Register, Work Orders & GIS (Geocortex) Asset Layers. The implementation of Asset Edge – ‘Reflect’ mobile inspection and accomplishments software has been implemented with Transport assets. The Park Inspections will be implemented by June 2016. |
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5. Develop capital investment strategies and plans that target sustainability and our Fit for Future priorities. |
DIS |
June 2016 |
Progress Update (31 December 2015) This work is in progress through preparation for the 2016/17 operations plan and associated forward estimates. |
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6. Creatively develop new and revised funding strategies for better community outcomes. |
DIS |
June 2016 |
Progress Update (31 December 2015) There will be a detailed view of S94 opportunities in the forward capital program.
Grant opportunities have been pursued for six bridges.
A major grant application was submitted for the Lot 5 Sports Field but was unfortunately unsuccessful. |
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7. Engage with the community on the challenges of asset management. |
DIS |
June 2016 |
Progress Update (31 December 2015) Meetings of the Community Infrastructure Advisory Committee have been held in September and December. |
Strategy Element: Long Term Financial Planning
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Actions |
Action Owner |
Action Due Date |
Management Comments |
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1. Update the 2015-2025 Long Term Financial Plan with Water and Sewerage business plan information during the 2015/16 financial year. |
Finance Manager |
June 2016 |
Progress Update (31 December 2015) Action yet to be undertaken as still awaiting receipt of the Water and Sewerage Business Plans. |
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2. Develop the 2016-2026 Long Term Financial Plan in conjunction with the 2016/17 Operational Plan and report to the Finance Advisory Committee/Council prior to 30 June 2016. |
Finance Manager |
June 2016 |
Progress Update (31 December 2015) This process has commenced with 2016/2017 budget bids currently due and being compiled as the basis for the next version of the Long Term Financial Plan. Currently on track to be reported to Council prior to 30 June 2016. |
Strategy Element: Performance Indicators
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Actions |
Action Owner |
Action Due Date |
Management Comments |
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1. Ongoing quarterly reporting to the Finance Advisory Committee and Council on Financial Sustainability Plan (FSP) outcomes. |
Finance Manager |
Quarterly |
Progress Update (31 December 2015) Reporting for quarter ended 31 December 2015 submitted to FAC on 18 February 2016. |
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2. Recognition through the QBR process of financial outcomes delivered by the FSP. |
Finance Manager |
Quarterly |
Progress Update (31 December 2015) September QBR report submitted to FAC meeting on 12 November 2015 and Council on 19 November 2015.
December QBR report submitted to FAC meeting on 18 February 2016 and Council on 25 February 2016. |
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3. Structural changes to both revenue sources and expenditure will be updated in the base budget during the preparation of the 2016/17 Budget. |
Finance Manager |
June 2016 |
Progress Update (31 December 2015) Currently being assessed in conjunction with budgets bids received for the 2016/2017 budget.
|
|
4. The financial outcomes delivered by the FSP updated into Council’s Long Term Financial Plan and modelled in the Long Term Financial Plan Scenarios. |
Finance Manager |
June 2016 |
Progress Update (31 December 2015) Changes are being identified by the Finance Manager through the QBR and financial modelling processes.
|
|
5 Assessment of the Note 13 and Special Schedule 7 performance ratios disclosed annually in Council’s audited financial statements which should indicate a trend improvement from FSP outcomes. |
Finance Manager |
June 2016 |
Progress Update (31 December 2015) No action this quarter but to be included in the development of the 2016-2026 Long Term Financial Plan. |
|
6. Assessment of the seven ‘Fit for Future’ benchmarks on an ongoing basis to ensure Council maintains the ‘Fit’ outcome. |
Finance Manager |
June 2016 |
Progress Update (31 December 2015) No action this quarter but to be included in the development of the 2016-2026 Long Term Financial Plan. |
Staff Reports - Corporate and Community Services 5.2
Report No. 5.2 Budget Review - 1 October 2015 to 31 December 2015
Directorate: Corporate and Community Services
Report Author: James Brickley, Manager Finance
File No: I2016/111
Theme: Corporate Management
Financial Services
Summary:
This report is prepared to comply with Regulation 203 of the Local Government (General) Regulation 2005 and to inform Council and the Community of Council’s estimated financial position for the 2015/2016 financial year, reviewed as at 31 December 2015.
This report contains an overview of the proposed budget variations for the General Fund, Water Fund and Sewerage Fund. The specific details of these proposed variations are included in Attachment 1 and 2 for Council’s consideration and authorisation.
Attachment 3 contains the Integrated Planning and Reporting Framework (IP&R) Quarterly Budget Review Statement (QBRS) as outlined by the Division of Local Government in circular 10-32.
|
RECOMMENDATION: That the Finance Advisory Committee recommend to Council:
1. That Council authorise the itemised budget variations as shown in Attachment 2 (#E2016/8631) which includes the following results in the 31 December 2015 Quarterly Review of the 2015/2016 Budget:
a) General Fund - $0 adjustment in the accumulated surplus/working funds b) General Fund - $2,238,300 increase in reserves c) Water Fund - $1,210,900 increase in reserves d) Sewerage Fund - $1,573,700 increase in reserves
2. That Council adopt the revised General Fund Accumulated Surplus/(Working Funds) of $919,100 for the 2015/2016 financial year as at 31 December 2015.
|
1 Budget Variations for General, Water and Sewerage Funds, E2016/8629 , page 32
2 Itemised Listing of Budget Variations for General, Water and Sewerage Funds, E2016/8631 , page 100
3 Integrated Planning and Reporting Framework (IP&R) required Quarterly Review Statement, E2016/8632 , page 105
Report
Council adopted the 2015/2016 budget on 25 June 2015 via Resolution 15-293. It also considered and adopted the budget carryovers from the 2014/2015 financial year, to be incorporated into the 2015/2016 budget, at its Ordinary Meeting held 27 August 2015 via Resolution 15-386. Since that date, Council has reviewed the budget taking into consideration the 2014/2015 Financial Statement results and progress through the first half of the 2015/2016 financial year. This report considers the December 2015 Quarter Budget Review.
The details of the budget review for the Consolidated, General, Water and Sewer Funds are included in Attachment 1, with an itemised listing in Attachment 2. This aims to show the consolidated budget position of Council, as well as a breakdown by Fund and Principal Activity. The document in Attachment 1 is also effectively a publication outlining a review of the budget and is intended to provide Councillors with more detailed information to assist with decision making regarding Council’s finances.
Contained in the document at Attachment 1 is the following reporting hierarchy:
Consolidated Budget Cash Result
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 |
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 |
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General Fund Cash Result Water Fund Cash Result Sewer Cash Result
|
|
|
Principal Activity Principal Activity Principal Activity
|
|
|
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 |
|||||||
Operating Income Operating Expenditure Capital income Capital Expenditure
The pages within Attachment 1 are presented (from left to right) by showing the original budget as adopted by Council on 25 June 2015 plus the adopted carryover budgets from 2014/2015 followed by the resolutions between July and September, the September review, resolutions between October and December and the revote (or adjustment for this review) and then the revised position projected for 30 June 2016 as at 31 December 2015.
On the far right of the Principal Activity, there is a column titled “Note”. If this is populated by a number, it means that there has been an adjustment in the quarterly review. This number then corresponds to the notes at the end of the Attachment 1 which provides an explanation of the variation.
There is also information detailing restricted assets (reserves) to show Council estimated balances as at 30 June 2016 for all Council’s reserves.
A summary of Capital Works is also included by Fund and Principal Activity.
Office of Local Government Budget Review Guidelines:-
The Office of Local Government on 10 December 2010 issued the new Quarterly Budget Review Guidelines via Circular 10-32, with the reporting requirements to apply from 1 July 2011. This report includes a Quarterly Budget Review Statement (refer Attachment 3) prepared by Council in accordance with the guidelines.
The Quarterly Budget Review Guidelines set a minimum standard of disclosure, with these standards being included in the Local Government Code of Accounting Practice and Financial Reporting as mandatory requirements for Council’s to address.
Since the introduction of the new planning and reporting framework for NSW Local Government, it is now a requirement for Councils to provide the following components when submitting a Quarterly Budget Review Statement (QBRS):-
· A signed statement by the Responsible Accounting Officer on Councils financial position at the end of the year based on the information in the QBRS
· Budget review income and expenses statement in one of the following formats:
o Consolidated
o By fund (e.g General, Water, Sewer)
o By function, activity, program etc to align with the management plan/operational plan
· Budget Review Capital Budget
· Budget Review Cash and Investments Position
· Budget Review Key performance indicators
· Budget Review Contracts and Other Expenses
The above components are included in Attachment 3:-
Income and Expenditure Budget Review Statement by Type – This shows Councils income and Expenditure by type. This has been split by Fund. Adjustments are shown, looking from left to right. These adjustments are commented on through pages 51 to 63 of Attachment 1.
Capital Budget Review Statement – This statement identifies in summary Council’s capital works program on a consolidated basis and then split by Fund. It also identifies how the capital works program is funded. As this is the second quarterly review for the reporting period, the Statement may not necessarily indicate the total progress achieved on the delivery of the capital works program.
Cash and Investments Budget Review Statement – This statement reconciles Council’s restricted funds (reserves) against available cash and investments. Council has attempted to indicate an actual position as at 31 December 2015 of each reserve to show a total cash position of reserves with any difference between that position and total cash and investments held as available cash and investments. It should be recognised that the figure is at a point in time and may vary greatly in future quarterly reviews pending on cash flow movements.
Key Performance Indicators (KPI’s) – At this stage, the KPI’s within this report are:-
o Debt Service Ratio - This assesses the impact of loan principal and interest repayments on the discretionary revenue of Council.
o Rates and Annual Charges Outstanding Ratio – This assesses the impact of uncollected rates and annual charges on Councils liquidity and the adequacy of recovery efforts
o Asset Renewals Ratio – This assesses the rate at which assets are being renewed relative to the rate at which they are depreciating.
These may be expanded in future to accommodate any additional KPIs that Council may adopt to use in the Long Term Financial Plan (LTFP.)
Contracts and Other Expenses - This report highlights any contracts Council entered into during the July to September quarter that are greater than $50,000.
CONSOLIDATED RESULT
The following table provides a summary of the overall Council budget on a consolidated basis inclusive of all Funds budget movements for the 2015/2016 financial year projected to 30 June 2016 but revised as at 31 December 2015.
|
2015/2016 Budget Review Statement as at 31 December 2015 |
Original Estimate (Including Carryovers) 1/7/2015 |
Adjustments to Dec 2015 including Resolutions* |
Proposed Dec 2015 Review Revotes |
Revised Estimate 30/6/2016 at 31/12/2015 |
|
Operating Revenue |
72,162,100 |
457,600 |
1,825,400 |
74,445,100 |
|
Operating Expenditure |
78,507,400 |
(1,585,000) |
1,708,100 |
78,630,500 |
|
Operating Result – Surplus/Deficit |
(6,345,300) |
2,042,600 |
117,300 |
(4,185,400) |
|
Add: Capital Revenue |
10,726,000 |
764,100 |
(4,433,800) |
7,056,300 |
|
Change in Net Assets |
4,380,700 |
2,806,700 |
(4,316,500) |
2,870,900 |
|
Add: Non Cash Expenses |
14,586,500 |
(2,071,400) |
0
|
12,515,100 |
|
Add: Non-Operating Funds Employed |
4,100,000 |
0 |
1,040,700 |
5,140,700 |
|
Subtract: Funds Deployed for Non-Operating Purposes |
(43,048,100) |
(2,622,000) |
8,298,700 |
(37,371,400) |
|
Cash Surplus/(Deficit) |
(19,980,900) |
(1,886,700) |
5,022,900 |
(16,844,700) |
|
Restricted Funds – Increase / (Decrease) |
(19,980,900) |
(1,886,700) |
5,022,900 |
(16,844,700) |
|
Forecast Result for the Year – Surplus/(Deficit) – Working Funds |
0 |
0 |
0 |
0 |
As the table above highlights, the forecast result for the year has not changed during the review period including Council resolutions. Results by General, Water and Sewerage Fund are provided below:
GENERAL FUND
In terms of the General Fund projected Accumulated Surplus (Working Funds) the following table provides a reconciliation of the estimated position as at 31 December 2015:
|
Opening Balance – 1 July 2015 |
$919,100 |
|
Plus original budget movement and carryovers |
0 |
|
Council Resolutions July – September Quarter |
0 |
|
September Review |
0 |
|
Council Resolutions October – December Quarter |
0 |
|
Recommendations within this Review – increase/(decrease) |
0 |
|
Forecast Working Funds Result – Surplus/(Deficit) – 30 June 2016 |
0 |
|
Estimated Working Funds Closing Balance – 30 June 2016 |
$919,100 |
The General Fund financial position has had no movement (including budget movements) as a result of this budget review. The proposed budget changes that have overall not impacted on this result have been highlighted in Attachment 1 and summarised further in this report below.
Council Resolutions
There were no Council resolutions during the October to December 2015 quarter that impacted the overall 2015/2016 budget result.
Budget Adjustments
The budget adjustments identified in Attachments 1 and 2 for the General Fund have been summarised by Budget Directorate in the following table:
|
Budget Directorate |
Revenue Increase/ (Decrease) $ |
Expenditure Increase/ (Decrease) $ |
Accumulated Surplus (Working Funds) Increase/ (Decrease) $ |
|
Organisation Development |
0 |
0 |
0 |
|
Corporate & Community Services |
4,900 |
49,500 |
(44,600) |
|
Infrastructure Services |
(3,095,400) |
(3,002,200) |
(93,200) |
|
Sustainable Environment & Economy |
264,900 |
127,100 |
137,800 |
|
Total Budget Movements |
(2,825,600) |
(2,825,600) |
0 |
Budget Adjustment Comments
Within each of the Budget Directorates of the General Fund, are a series of budget adjustments identified in detail at Attachment 1 and 2. More detailed notes on these are provided in Attachment 1 but in summary the major additional items included are summarised below by Division and are included in the overall budget adjustments table above:
Corporate and Community Services
· In the Information Services Program there are proposed budget adjustments for various maintenance and licences budget items. These adjustments are to bring the budgets into line with expected actual expenditure. Savings of $21,400 can be realised with these recommended this be moved to the IT Strategic Plan to assist in funding recommended actions.
· In the Governance Services Program it is proposed to increase operating income by $4,900 for document preparation fees for the Periwinkle pre school lease and operating expenditure by $15,800 to undertake a review of the Organisation Development Directorate structure via an external consultancy. This cost is allocated through support services and has no net effect on the overall budget result.
· In the Community Development Program, it is proposed to create a Volunteers budget of $5,000. This is currently situated in the Economic Development program. It is also proposed to increase expenditure by $38,900 for Section 356 donations used for the Periwinkle pre-school.
Infrastructure Services
· In the Asset Management program it is proposed to make budget adjustments for the sale of the Roundhouse sub-division. Budget provision is required to account for agents commission and to increase the capital income budget to reflect the sale proceeds after accounting for the GST applicable. The difference between the increased budgeted sale proceeds and agents commission expenditure is to be transferred to the Infrastructure Renewal reserve.
· In the Emergency Services program it is proposed to increase income and expenditure by $63,000 due to a portion of costs for the Rural Fire Service (RFS) being allocated to Ballina and Tweed RFS for reimbursement. The Belongil Floodplain Management Study has also been completed. This was to be funded by a $30,000 grant and $15,000 revenue. It is proposed to move the revenue funded component to the Brunswick River Flood Warning Telemetry for an additional water level gauge and telemetry to the Bureau of Meteorology website.
· In the Local Roads and Drainage program, there are a significant number of adjustments outlined under Note 10 in the Budget Variations explanations section of Attachment 1. Further disclosure is included in the second page of Attachment 2 under the budget program heading Local Roads and Bridges.
· In the Roads and Maritime Services program (RMS) it is proposed to increase operating income and expenditure by $1,488,200 to bring the budget for various natural disaster works into line with approved funding from the Roads & Maritime Service (RMS).It is proposed to increase capital works for additional costs on Tweed Valley Way by $91,300. This can be funded from an unexpended grant Council received upon handover of the old Pacific Highway in 2009.
· In the Open Space and Recreation program, it is proposed to increase operating expenditure by $29,100 due to an amount of $11,500 being transferred to the NSW Crown Holiday Trust for revenue sharing for activities held at Wategos and Clarkes Beach (funded from the Crown reserve) and an increase to the Brunswick Heads sports fields for $17,600. The increase to the sports fields is offset by a reduction in the Brunswick Heads Boat Ramp - Pontoon works which came in under budget and were originally funded via a budget transfer from the sports fields.
· In the Waste & Recycling program it is anticipated that no further income will be received in the sale of scrap metal due to the fall in price, therefore it is proposed to move a budget of $61,000 from 1811.3 to the domestic waste management charge that is over budget. Capital Expenditure decreased by $197,000 as it is anticipated that EPS Recycling, ($40,000), Cardboard Recycling ($45,000), Resource Recovery Centre Master plan ($82,000) and Public Place Recycling Enclosures ($30,000) will not be undertaken until 2016-2017.
· In the First Sun Holiday Park program, it is proposed to decrease the capital works budget by $280,000 as it is anticipated works will not be complete in 2015/16. These works are funded through the Holiday Park reserve.
· In the Suffolk Park Holiday Park program, it is proposed to decrease the capital works budget by $350,000 as it is anticipated works will not be complete in 2015/16. These works are funded through the Holiday Park reserve.
· In the Cavanbah Centre program, it is proposed to increase operating income and expenditure by $25,000 to reflect actual sales and costs of food and beverages. It is also proposed to remove the external door for the commercial kitchen capital works as this will not be completed in 2015/16.
· In the Facilities Management program operating expenditure increased due to unforeseen expenditure on the filtration system and filter pumps at Mullumbimby pool that required urgent repairs ($25,000), funded from the Property Reserve. A budget is also required for the 70-90 Station Street Sub Division Investigation ($16,100) to reflect actual costs, funded from the Property Development Reserve. Capital works decreased largely due to the upgrade of Suffolk Park Hall ($300,000) not being completed this financial year and Byron Bay Library ($250,000).
Sustainable Environment and Economy
· Additional revenue is occurring in the Development & Certification Program due to increased development activity. There is also additional expenditure associated with temporary staff resourcing to complete these applications.
· In the Planning Policy and Natural Environment Program, the budget is to be amended for increased expenditure for the CZMP, funded through an unexpended grant, and an increase to a Place Activation Plan for Mullumbimby and Bangalow funded from savings in the Development and Certification program.
· In the Economic Development program it is proposed to add a budget of $12,500 to enable Council to have data analysed via a consultancy (ID Profile). The data analysis will assist Council when submitting grant applications by highlighting the need for support in the Shire. It is proposed to fund this from the General Manager’s reserve.
WATER FUND
After completion of the 2014/2015 Financial Statements the Accumulated Surplus (Working Fund) balance for the Water Fund, as at 30 June 2015, is $1,968,400 with capital works reserves of $2,577,900. It also held $10,817,600 in section 64 developer contributions at this time.
The estimated Water Fund reserve balances as at 30 June 2016, and forecast in this Quarter Budget Review, are derived as follows:
Capital Works Reserve
|
Opening Reserve Balance at 1 July 2015 |
$2,577,900 |
|
Plus original budget reserve movement |
1,130,200 |
|
Less reserve funded carryovers from 2014/2015 |
(1,445,400) |
|
Resolutions July - September Quarter – increase / (decrease) |
(2,200) |
|
September Quarterly Review Adjustments – increase / (decrease) |
21,300 |
|
Resolutions October - December Quarter – increase / (decrease) |
0 |
|
December Quarterly Review Adjustments – increase / (decrease) |
210,900 |
|
Forecast Reserve Movement for 2015/2016 – Increase / (Decrease) |
(85,200) |
|
Estimated Reserve Balance at 30 June 2016 |
$2,492,700 |
Section 64 Developer Contributions
|
Opening Reserve Balance at 1 July 2015 |
$10,817,600 |
|
Plus original budget reserve movement |
(3,779,000) |
|
Less reserve funded carryovers from 2014/2015 |
(226,500) |
|
Resolutions July - September Quarter – increase / (decrease) |
0 |
|
September Quarterly Review Adjustments – increase / (decrease) |
6,000 |
|
Resolutions October - December Quarter – increase / (decrease) |
(500,000) |
|
December Quarterly Review Adjustments – increase / (decrease) |
1,000,000 |
|
Forecast Reserve Movement for 2015/2016 – Increase / (Decrease) |
(3,499,500) |
|
Estimated Reserve Balance at 30 June 2016 |
$7,318,100 |
Movements for Water Fund can be seen in Attachment 1 with a proposed estimated increase to reserves (including S64 Contributions) overall of $1,210,900 from the 31 December 2015 Quarter Budget Review.
SEWERAGE FUND
After completion of the 2014/2015 Financial Statements the Accumulated Surplus (Working Fund) balance for the Sewer Fund, as at 30 June 2015, was $1,776,500 with capital works reserves of $4,681,300 and plant reserve of $785,100. It also held $6,228,000 in section 64 developer contributions.
Capital Works Reserve
|
Opening Reserve Balance at 1 July 2015 |
$4,681,300 |
|
Plus original budget reserve movement |
2,189,700 |
|
Less reserve funded carryovers from 2014/2015 |
(125,500) |
|
Resolutions July - September Quarter – increase / (decrease) |
0 |
|
September Quarterly Review Adjustments – increase / (decrease) |
(3,900) |
|
Resolutions October - December Quarter – increase / (decrease) |
0 |
|
December Quarterly Review Adjustments – increase / (decrease) |
(1,107,300) |
|
Forecast Reserve Movement for 2015/2016 – Increase / (Decrease) |
953,000 |
|
Estimated Reserve Balance at 30 June 2016 |
$5,634,300 |
Plant Reserve
|
Opening Reserve Balance at 1 July 2015 |
$785,100 |
|
Plus original budget reserve movement |
0 |
|
Less reserve funded carryovers from 2014/2015 |
0 |
|
Resolutions July - September Quarter – increase / (decrease) |
0 |
|
September Quarterly Review Adjustments – increase / (decrease) |
0 |
|
Resolutions October - December Quarter – increase / (decrease) |
0 |
|
December Quarterly Review Adjustments – increase / (decrease) |
0 |
|
Forecast Reserve Movement for 2015/2016 – Increase / (Decrease) |
0 |
|
Estimated Reserve Balance at 30 June 2016 |
$785,100 |
Section 64 Developer Contributions
|
Opening Reserve Balance at 1 July 2015 |
$6,228,000 |
|
Plus original budget reserve movement |
(1,853,600) |
|
Less reserve funded carryovers from 2014/2015 |
(1,803,500) |
|
Resolutions July - September Quarter – increase / (decrease) |
0 |
|
September Quarterly Review Adjustments – increase / (decrease) |
0 |
|
Resolutions October - December Quarter – increase / (decrease) |
(500,000) |
|
December Quarterly Review Adjustments – increase / (decrease) |
2,681,000 |
|
Forecast Reserve Movement for 2015/2016 – Increase / (Decrease) |
(1,476,100) |
|
Estimated Reserve Balance at 30 June 2016 |
$4,751,900 |
Movements for the Sewerage Fund can be seen in Attachment 1 with a proposed estimated overall increase to reserves (including S64 Contributions) of $1,573,700 from the 31 December 2015 Quarter Budget Review.
Legal Expenses
One of the major financial concerns for Council over previous years has been legal expenses. Not only does this item represent a large expenditure item funded by rate income, but is also susceptible to large fluctuations.
The table that follows indicates the allocated budget and actual legal expenditure within Council on
a fund basis as at 31 December 2015.
Total Legal Income & Expenditure as at 31 December 2015
|
Program |
2015/2016 Budget ($) |
Actual ($) |
Percentage To Revised Budget |
|
Income |
|
|
|
|
Legal Expenses Recovered |
0 |
900 |
0% |
|
Total Income |
0 |
360 |
0% |
|
|
|
|
|
|
Expenditure |
|
|
|
|
General Legal Expenses |
200,000 |
69,495 |
34% |
|
Total Expenditure General Fund |
200,000 |
69,495 |
34% |
Note: The above table does not include costs incurred by Council in proceedings after 31 December 2015 or billed after this date.
The current status of the Legal Services Reserve is shown below:
Legal Reserve
|
Opening Reserve Balance at 1 July 2015 |
$779,100 |
|
Less Belongil Bridge Pile Repairs (44217 - Original Budget) |
(200,000) |
|
Less Road Reconstruction Works (Various – Original Budget) |
(230,000) |
|
Estimated Reserve Balance at as at 31 December 2015 |
$349,100 |
Financial Implications
The 31 December 2015 Quarter Budget Review of the 2015/2016 Budget has not changed the overall budget result and as such this result does not affect the estimated accumulated surplus (working funds) position attributable to the General Fund, with this remaining at an estimated $919,100 at 30 June 2016.
Statutory and Policy Compliance Implications
In accordance with Clause 203 of
the Local Government (General) Regulation 2005 the Responsible Accounting
Officer of a Council must:-
(1) Not later than 2 months after the end of each quarter (except the June quarter), the responsible accounting officer of a council must prepare and submit to the council a budget review statement that shows, by reference to the estimate of income and expenditure set out in the statement of the council’s revenue policy included in the operational plan for the relevant year, a revised estimate of the income and expenditure for that year.
(2) A budget review statement must include or be accompanied by:
(a) a report as to whether or not the responsible accounting officer believes that the statement indicates that the financial position of the council is satisfactory, having regard to the original estimate of income and expenditure, and
(b) if that position is unsatisfactory, recommendations for remedial action.
(3) A budget review statement must also include any information required by the Code to be included in such a statement.
Statement by Responsible Accounting Officer
This report indicates that the short term financial position of the Council is satisfactory for the 2015/2016 financial year, having consideration of the original estimate of income and expenditure at the 31 December 2015 Quarter Budget Review.
This opinion is based on the estimated General Fund Accumulated Surplus (Working Funds) position and that the current indicative budget position for 2015/2016 is maintained in this Budget Review. Notwithstanding this, Council will need to continue to carefully monitor the 2015/2016 budget over the remainder of the financial year.
