14.2 - Attachment 2
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.
14.2 - Attachment 2
Staff Reports - Corporate and Community Services
Report No. 5.1 2014/15
Financial Sustainability Project Plan - Update on the Action Implementation
Plan as at 31 December 2014
Directorate: Corporate
and Community Services
Report
Author: Mark Arnold, Director Corporate and Community Services
File No: I2015/11
Theme: Corporate Management
Financial Services
Summary:
Council at its Ordinary meeting held on 7 August 2014
adopted the Financial Sustainability Project Plan (FSPP) 2014/2015 via
Resolution 14-326.
The FSPP adopted by Council is for the 2014/15 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 FSPP 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 FSPP 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 2014/15 FSPP Plan, for the period to 31 December 2014.
|
RECOMMENDATION:
That the Finance Advisory Committee recommend to Council:
That the update report to 31 December 2014 on the
2014/2015 Financial Sustainability Project Plan Action Implementation
Plan be received and noted.
|
Attachments:
1 2014/15 Financial Sustainability Project Plan
Action Implementation Plan as at 31 December 2014, E2014/85921 , page 4
Report
Council at its Ordinary meeting held on 7 August 2014
adopted the Financial Sustainability Project Plan (“FSPP”) 2014/2015 via
Resolution 14-326, which reads as follows:.
“Resolved that Council adopt the Financial Sustainability
Project Plan 2014/2015 (#E2014/38787)”:
The FSPP adopted by Council is for the 2014/15 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 FSPP 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 FSPP 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 2014/15 FSPP, for the period to 31 December 2014.
A summary of the actions detailed in the FSPP has been
prepared and attached to this Report at Attachment 1. A comment has included
in the summary against each 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 FSPP. In
terms of actual financial outcomes, at this point for the 2014/2015 financial
year, the following savings or new revenue have been identified since the last
update report to the Finance Advisory Committee:
1. Recognition
of $5,400 new revenue for the remainder of 2014/2015 in the Public Libraries
Budget Program for rental of space for a mobile coffee cart. Revenue will be
greater in 2015/2016 where a full year revenue can be identified.
2. Recognition
of $20,000 extra funding to progress the planning work of the Station Street
subdivision funded from the sale proceeds generated by the former Telstra site
sale. This will assist Council continue Land Review and Property Development
Strategy Element of the Financial Sustainability Project Plan.
3. Provision
of additional $24,700 to pay out three sewerage fund loans with the
Commonwealth Bank and one loan with the South Australian Government Finance
Authority. The four outstanding loans were due to mature between 2015 and 2019
but were reviewed to consider paying out due to small balances and payout
penalties. This will create a small saving in future years in the Sewerage
Fund and is consistent with one of the aims of the FSPP to reduce debt.
4. The 31
December 2014 Quarter Budget Review has been able to provide funding without
reducing the projected budget surplus of $105,000 to undertake assessments and
investigations of the Tyagarah Airfield in accordance with resolution 14-657.
This is also an item of Land Review and Property Development Strategy Element
of the FSPP.
Whilst the outcomes identified in points 1 to 4 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 2014/2015 Budget Estimates pending Council approval
of the 31 December 2014 Quarter Budget Review to be presented to Council on 26
February 2015 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 FSPP be based on actual outcomes and not estimated
outcomes. In that regard, the financial reporting of outcomes of the FSPP will
be in arrears, once the outcomes are known and actions in the FSPP 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
2014/2015 financial year as part of the recently adopted FSPP by Council at its
Ordinary Meeting held on 7 August 2014 (Resolution 14-326). A register
has been developed to track the financial outcomes of the FSPP 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 and 14-326.
The development of the FSPP 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.
14.2 - Attachment 2
Report No. 5.2 Budget
Review - 1 October 2014 to 31 December 2014
Directorate: Corporate
and Community Services
Report
Author: James Brickley, Manager Finance
File No: I2015/55
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 2014/2015 financial
year, reviewed as at 31 December 2014.
This report also provides an
opportunity for the Finance Advisory Committee to review 31 December 2014
Quarter Budget Review prior to it being considered by Council at its Ordinary
Meeting to be held on 26 February 2015.
|
RECOMMENDATION:
That the
Finance Advisory Committee recommend to Council:
1. That
Council authorise the itemised budget variations as shown in Attachment 2
(#E2015/8370) which includes the following results in the 31 December 2014
Quarterly Review of the 2014/2015 Budget:
(a) General
Fund - $0 adjustment in the accumulated surplus
(b) Water
Fund - $1,562,900 increase in reserves
(c)
Sewerage Fund - $656,100 increase in reserves
2. That
That Council adopt the revised General Fund Accumulated Surplus/(Working
Funds) surplus of $1,956,550 for the 2014/2015 financial year as at 31
December 2014.
|
Attachments:
1 Budget Variations for the General, Water and
Sewer Funds #E2015/8368, E2015/8368
, page 4
2 Itemised Listing of Budget Variations for
General, Water and Sewerage Funds #E2015/8370, E2015/8370 , page 4
3 New Integrated Planning and Reporting
Framework (IP&R) required Quarterly Budget Review Statement (QBRS)
componenets #2015/8369, E2015/8369
, page 4
Report
Council adopted the 2014/2015 budget on 12 June 2014 via
Resolution 14-285. It also considered and adopted the budget carryovers
from the 2013/2014 financial year, to be incorporated into the 2014/2015
budget, at its Ordinary Meeting held 28 August 2014 via Resolution 14-389.
Since that date, Council has reviewed the budget taking into consideration the
2013/2014 Financial Statement results and progress through the first half of
the 2014/2015 financial year. This report considers the December 2014 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
General Fund Cash
Result Water Fund Cash Result Sewer Cash Result
Principal Activity Principal
Activity Principal Activity
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 12 June 2014
plus the adopted carryover budgets from 2013/2014 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 2015 as at 31 December 2014.
On the far right of the Principal, 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 Attachment 1 which provides an explanation of the variation.
There is also information detailing restricted assets
(reserves) to show Councils estimated balances as at 30 June 2015 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.
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 2014 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
October to December quarter that are greater then $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 2014/2015 financial year projected to 30 June 2015 but revised as at 31
December 2014.
|
2014/2015 Budget Review Statement as at 31 December 2014
|
Original Estimate (Including Carryovers)
1/7/2014
|
Adjustments to Dec 2014 including Resolutions*
|
Proposed Dec 2014 Review Revotes
|
Revised Estimate 30/6/2015 at 31/12/2014
|
|
Operating Revenue
|
76,364,300
|
1,948,600
|
220,800
|
78,533,700
|
|
Operating Expenditure
|
84,894,350
|
1,962,300
|
549,900
|
87,406,550
|
|
Operating Result –
Surplus/Deficit
|
(8,530,050)
|
(13,700)
|
(329,100)
|
(8,872,850)
|
|
Add: Capital Revenue
|
3,972,700
|
296,000
|
595,300
|
4,864,000
|
|
Change in Net Assets
|
(4,557,350)
|
282,300
|
266,200
|
(4,008,850)
|
|
Add: Non Cash Expenses
|
15,890,000
|
0
|
0
|
15,890,000
|
|
Add: Non-Operating Funds
Employed
|
1,800,000
|
470,000
|
0
|
2,270,000
|
|
Subtract: Funds Deployed for
Non-Operating Purposes
|
(21,188,100)
|
(1,918,400)
|
1,307,200
|
21,799,300
|
|
Cash Surplus/(Deficit)
|
(8,055,450)
|
(1,166,100)
|
1,573,400
|
7,648,150
|
|
Restricted Funds – Increase
/ (Decrease)
|
(8,072,300)
|
(1,166,100)
|
1,573,400
|
(7,665,000)
|
|
Forecast Result for the
Year – Surplus/(Deficit) – Working Funds
|
16,850
|
0
|
0
|
16,850
|
As the table above highlights, the
forecast result for the year has not changed for 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 to the estimated
position as at 31 December 2014:
|
Opening Balance – 1 July
2014
|
$1,939,700
|
|
Plus original budget
movement and carryovers
|
16,850
|
|
Council Resolutions July – September
Quarter
|
0
|
|
September Review Adjustments
– increase/(decrease)
|
0
|
|
Council Resolutions October
– December Quarter
|
0
|
|
Recommendations within this
Review – increase/(decrease)
|
0
|
|
Forecast Working Funds
Result – Surplus/(Deficit) – 30 June 2015
|
16,850
|
|
Estimated Working Funds
Closing Balance – 30 June 2015
|
$1,956,550
|
The General Fund financial
position has not changed as a result of this budget review. The proposed budget
changes that have 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 2014 quarter that impacted the overall 2014/2015
budget result.
Budget Adjustments
The budget adjustments identified
in Attachment 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)
$
|
|
General Managers Office
|
21,300
|
50,600
|
(29,300)
|
|
Organisational Development
|
0
|
0
|
0
|
|
Corporate & Community
Services
|
168,400
|
141,900
|
26,500
|
|
Infrastructure Services
|
642,800
|
701,200
|
(58,400)
|
|
Sustainable Environment &
Economy
|
643,300
|
582,100
|
61,200
|
|
Total Budget Movements
|
1,475,800
|
1,475,800
|
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:
General Manager
In the General Managers program additional expenditure of
$30,000 is required to engage a consultant to assist Council in it’s Fit For
the Future submission.
In the Economic Development program additional expenditure
is required to purchase ID software products to assist providing demographic,
social and economic data that will enable better strategy planning.
Corporate and Community
Services
In the Administrative Services –
Councillors Budget Program there is a reduction in expenditure due to savings
against Councils’ NOROC membership, Far North Coast County Council
contribution, Regional committee for Mosquito Management contribution and the
Companion Animals contribution.
In the Information Services
Program additional budgets for capital works are required. The Automated
Agenda and Minutes (InfoCouncil) has gone slightly over budget and requires
$44,800 due to Council specifc requirements and approval for stage 2.
In the Property Program the major
budget adjustments are the recognition in the budget of the grant for the
Bangalow Showground Trust ($36,700) and an additional $20,000 for
pre-construction works on the 70-90 Station Street sub-division.
In the Compliance and Infringement
Processing Programs, additional revenue is budgeted for fees received for
swimming pool inspections and revenue for resource sharing of Council’s licence
plate recognition equipment with Lismore City Council.
In the Community Development
Program, revenue budget has been adjusted to account for a $20,400 grant for an
Aboriginal Arts & Cultural project. Operating Expenditure has also
increased for the grant expenditure.
In the Library Services Program,
the local priorities grant of $30,600 was received, along with income to be
received for the mobile coffee cart in the Library foyer.
Infrastructure Services
There are proposed substantial
changes to the Infrastructure Services Directorate budget in the following
budget program areas:
1. Depot and Fleet Operations
2. Local Roads and Drainage
3. Open Space and Recreation
4. Byron Reghional Sport and Cultural Complex
5. Water Supplies
6. Sewerage Services
Specific details of the porposed
budget variations are identified at the back of Attachment 1 from Notes 16 to
25 and Notes 30 to 31. A summary of all proposed budget revotes for
Infrastructure Services is also included by program in Attachment 2. As an
overall summary comment the following major proposed budget variations are
identified:
1. In the Infrastructure Services Supervision and
Administration budget program there are antcipated savings of $210,500 that is
proposed to be reallocated to pot hole patching $130,5000, $10,000 for traffic
counts, $40,000 for street sweeping, and $30,000 for parks maintenance.
2. There is an additional $871,800 proposed capital
expenditure for replacement of plant/vehicle in the 2014/2015 financial year
funded from the Plant Reserve. This expenditure is to cover the replacement
program for 2014/2015 and replacements that did not occur during the 2013/2014
financial year.
3. Capital expenditure in the Local Roads and Drainage
Budget is proposed to be reduced by $455,900 in total after reassessment of the
current works program and the ability for some projects to be completed this
financial year. For example the Coolamon Scenic Drive Mullumbimby to Ocean Shores
project is proposed to be reduced by $180,000 and the Broken Head Road Suffolk
Park project reduced by $250,000 as both projects require land acquisition
matters to be finalised before construction can commence.
4. In the Open Space and Recreation Program and
additional $122,500 is proposed for maintenance , $105,000 is proposed to fund
options and assessments associated with Tyagarah Airfield in accordance with
resolution 14-657. There is also an adjustment to reduce capital revenue
budgeted for grant funding associated with Belongil rockwall ($455,000).
5. Capital expenditure in the Waste Management area is
proposed to be increased by $160,000 which includes upgrade of public place bin
enclosures $50,000 and $110,000 for the installation of radio frequency
identification tags (RFIS) into existing mobile garbage bins to better
reconcile garbage services billed to bins provided and monitoring the
collection contractor.
6. Capital expenditure for the Byron Regional Sport and
Cultural Complex is proposed to increase by $150,000 to fund a solar power
generation and hot water system.
7. Capital expenditure in Water Supplies is proposed to
be reduced by $1,537,400 based on assessment of the current program.
Adjustments include $1,000,000 for the Mullumbimby Trunk Main replacement that
will not be completed in 2014/2015 and $370,000 for Coopers Shoot Reservior
upgrade which will not be completed due to a delay in a land transfer. There
are other adjustments identified in Note 30 at the back of Attachment 1.
8. Capital expenditure in Sewerage Services is proposed
to be reduced by $160,400 after reassessment of the current works program. It
is also proposed to fund and additional $22,000 in loan principal repayments in
the Sewerage Fund after the pre-payment and finalisation of four outstanding
loans in the Sewerage Fund after a review of the Sewerage loan portfolio. This
is consistent with a goal of the Financial Sustainability Project Plan (FSPP).
Sustainable Environment and
Economy
Additional revenue is occurring in
the Development Assessment and Certification and Customer Service Program due
to increased development activity.
In the Land and Natural
Environment Program, the budget is to be amended to cater for three new
Applicant Funded DCP's/LEP's. Note 28 in the Budget Variation Explanations
section at Attachment 1 provides more information.
WATER FUND
After completion of the 2013/2014
Financial Statements the Accumulated Surplus (Working Fund) balance for the
Water Fund, as at 30 June 2014, is $1,958,400 with capital works reserves of $2,500,200.
It also held $9,988,200 in section 64 developer contributions at this time.
The estimated Water Fund reserve
balances as at 30 June 2015, and forecast for the first half of 2014/15, is
derived as follows:
Capital Works Reserve
|
Opening Reserve Balance at 1
July 2014
|
$2,500,200
|
|
Plus original budget reserve movement
|
(246,300)
|
|
Less reserve funded carryovers
from 2013/2014
|
(305,800)
|
|
Resolutions July - September
Quarter – increase / (decrease)
|
0
|
|
September Quarterly Review
Adjustments – increase / (decrease)
|
(121,200)
|
|
Resolutions October - December
Quarter – increase / (decrease)
|
0
|
|
December Quarterly Review
Adjustments – increase / (decrease)
|
50,500
|
|
Forecast Reserve Movement for
2014/2015 – Increase / (Decrease)
|
(622,800)
|
|
Estimated Reserve Balance at
30 June 2015
|
$1,877,400
|
Section 64 Developer Contributions
|
Opening Reserve Balance at 1
July 2014
|
$9,988,200
|
|
Plus original budget reserve
movement
|
(1,230,700)
|
|
Less reserve funded carryovers
from 2013/2014
|
(280,400)
|
|
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)
|
1,512,400
|
|
Forecast Reserve Movement for
2013/2014 – Increase / (Decrease)
|
1,300
|
|
Estimated Reserve Balance at
30 June 2015
|
$9,989,500
|
Movements for Water Fund can be
seen in Attachment 1, with a proposed estimated increase to reserves (including
S64 Contributions) overall of $1,562,900 from the 31 December 2014 Quarter Budget
Review.
SEWERAGE FUND
After completion of the 2013/2014
Financial Statements the Accumulated Surplus (Working Fund) balance for the
Sewer Fund, as at 30 June 2014, was $1,791,900
with capital works reserves of $3,569,600 and plant reserve of $792,000.
It also held $4,939,400 in section 64 developer contributions.
Capital Works Reserve
|
Opening Reserve Balance at 1
July 2014
|
$3,569,600
|
|
Plus original budget reserve
movement
|
1,438,100
|
|
Less reserve funded carryovers
from 2013/2014
|
(282,600)
|
|
Resolutions July - September
Quarter – increase / (decrease)
|
0
|
|
September Quarterly Review
Adjustments – increase / (decrease)
|
(146,200)
|
|
Resolutions October - December
Quarter – increase / (decrease)
|
(19,100)
|
|
December Quarterly Review
Adjustments – increase / (decrease)
|
51,500
|
|
Forecast Reserve Movement for
2014/2015 – Increase / (Decrease)
|
1,041,700
|
|
Estimated Reserve Balance at
30 June 2015
|
$4,611,300
|
Plant Reserve
|
Opening Reserve Balance at 1
July 2014
|
$792,000
|
|
Plus original budget reserve movement
|
0
|
|
Less reserve funded carryovers
from 2013/2014
|
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
2014/2015 – Increase / (Decrease)
|
0
|
|
Estimated Reserve Balance at
30 June 2015
|
$792,000
|
Section 64 Developer
Contributions
|
Opening Reserve Balance at 1 July
2014
|
$4,939,400
|
|
Plus original budget reserve
movement
|
(993,100)
|
|
Less reserve funded carryovers
from 2013/2014
|
(594,500)
|
|
Resolutions July - September
Quarter – increase / (decrease)
|
0
|
|
September Quarterly Review
Adjustments – increase / (decrease)
|
(125,000)
|
|
Resolutions October - December
Quarter – increase / (decrease)
|
0
|
|
December Quarterly Review
Adjustments – increase / (decrease)
|
604,600
|
|
Forecast Reserve Movement for
2014/2015 – Increase / (Decrease)
|
(1,108,000)
|
|
Estimated Reserve Balance at 30
June 2015
|
$3,831,400
|
Movements for the Sewerage Fund can be seen in Attachment 1,
with a proposed estimated overall decrease to reserves (including S64
Contributions) of $656,100 from the 31 December 2014 Quarter Budget Review.
Legal Expenses
One of the major financial concerns for Council over
previous years has been legal expenses. Not only does this item represent a
large expenditure item funded by rate income, but is also susceptible to large
fluctuations.
The table that follows indicates the allocated budget and
actual legal expenditure within Council on a fund basis.
Total Legal Income & Expenditure as at 31 December
2014
|
Program
|
2014/2015
Budget ($)
|
Actual ($)
|
Percentage To
Revised Budget
|
|
Income
|
|
|
|
|
Legal Expenses Recovered
|
9,300
|
9,750
|
105%
|
|
Total Income
|
9,300
|
9,750
|
105%
|
|
|
|
|
|
|
Expenditure
|
|
|
|
|
General Legal Expenses
|
274,100
|
96,650
|
35%
|
|
Total Expenditure General Fund
|
274,100
|
96,650
|
35%
|
The current status of the Legal Services Reserve is shown
below:
Legal Reserve
|
Opening Reserve Balance at 1
July 2014
|
$779,100
|
|
Less Resolution 12-622
|
$(46,800)
|
|
Estimated Reserve Balance at
as at 31 December 2014
|
$732,300
|
Fluctuations in legal expenditure can
happen rapidly and for reasons not necessarily within Council’s control.
Council has developed and is maintaining a legal reserve to enable
Council to manage the potential fluctuations. A reserve balance of $600,000 is
considered adequate for this purpose at this time.
Financial Implications
The 31 December 2014 Quarter Budget Review of the 2014/2015
Budget did not change the overall budget result. The estimated accumulated
surplus (working funds) position attributable to the General Fund did not
change either, with this remaining an estimated $1,956,550 at 30 June 2015.
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 2014/2015, having consideration of the
original estimate of income and expenditure and budget revisions as per the 31
December 2014 Quarter Budget Review.
This opinion is based on the estimated General Fund
Accumulated Surplus (Working Funds) position and that the current indicative
budget surplus for 2014/2015 is maintained in this Budget Review.
Notwithstanding this, Council will need to continue to carefully monitor the
2014/2015 budget over the remainder of the financial year.
14.2 - Attachment 2
Report No. 5.3 Byron
Regional Sports and Cultural Complex (BRSCC) Operating Result for July to
December 2014
Directorate: Corporate
and Community Services
Report
Author: Greg Ironfield, Manager Community Development
File No: I2015/62
Theme: Community Infrastructure
Open Space and Recreation
Summary:
This report provides the Finance Advisory Committee with a
brief summary of the July – December 2014 financial operations for the Byron
Regional Sports and Cultural Complex (BRSCC) against Council’s adopted budget
for 2014/2015.
The report also provides the Finance Advisory Committee with
historical information from the 2012/13 and 2013/14 Financial Years to provide
context and a comparison of the financial performance of the BRSCC for the
first half of the 2014/2015 financial year.
|
RECOMMENDATION:
That Council receive and note this report on the
financial operating results of the Byron Regional Sport and Cultural Complex
(BRSCC) for the six (6) month period ending 31 December 2014.
|
Report
This report gives a brief summary of the July – December
2014 financial operations for the Byron Regional Sports and Cultural Complex
(BRSCC) against Council’s adopted budget for 2014/2015.
Financial Implications
Information previously provided to the Finance Advisory
Committee (#E2014/46792) and Council for consideration is outlined below:
In the 2012/2013 financial year, Council operated the
BRSCC for the first time for a full financial year. Table 1 below provides the
final financial results and adopted budget for 2012/2013.
Table 1 – 2012/2013 Final Financial Results
|
Job No
|
Description
|
Actual
2012/2013 $
|
Budget
2012/2013 $
|
|
|
Operating Revenue
|
|
|
|
1281
|
Multipurpose Centre Room Hire
|
39,722
|
39,700
|
|
1282
|
Multipurpose Centre Court 1 Hire
|
37,255
|
37,300
|
|
1283
|
Multipurpose Centre Court 2 Hire
|
32,974
|
33,000
|
|
1284
|
Multipurpose Centre Other Charges
|
23,040
|
23,100
|
|
|
Total Operating Revenue
|
132,991
|
133,100
|
|
|
|
|
|
|
|
Operating Expenditure
|
|
|
|
2431
|
Multipurpose Centre Management Costs
|
324,916
|
324,900
|
|
2432
|
Multipurpose Centre Building Maintenance
|
19,403
|
19,400
|
|
2433
|
Multipurpose Centre Operational Costs
|
134,234
|
134,200
|
|
|
Total Operating Expenditure
|
478,553
|
478,500
|
|
|
|
|
|
|
|
Actual Net Cost of BRSCC Operations
|
345,562
|
345,400
|
|
|
|
|
|
Table 2 below provides the final financial results and adopted
budget for 2013/2014.
Table 2 – 2013/2014 Final Financial Results
|
Job No
|
Description
|
Actual
2013/2014 $
|
Budget
2013/2014 $
|
|
|
Operating Revenue
|
|
|
|
1281
|
Multipurpose Centre Room Hire
|
75,062
|
75,100
|
|
1282
|
Multipurpose Centre Court 1 Hire
|
52,520
|
52,500
|
|
1283
|
Multipurpose Centre Court 2 Hire
|
46,183
|
46,200
|
|
1284
|
Multipurpose Centre Other Charges
|
74,186
|
74,200
|
|
|
Total Operating Revenue
|
247,951
|
248,000
|
|
|
|
|
|
|
|
Operating Expenditure
|
|
|
|
2431
|
Multipurpose Centre Management Costs
|
275,305
|
275,300
|
|
2432
|
Multipurpose Centre Building Maintenance
|
33,503
|
33,500
|
|
2433
|
Multipurpose Centre Operational Costs
|
169,211
|
169,200
|
|
|
Total Operating Expenditure
|
478,019
|
478,000
|
|
|
|
|
|
|
|
Actual Net Cost of BRSCC Operations
|
230,068
|
230,000
|
|
|
|
|
|
Please note that the above figures related purely to the
operational aspects of the Multi Purpose Centre at the BRSCC, excluding loan
repayments, Council support costs and any costs associated with the sports
fields at the BRSCC.
In summary:
There was a reduction of Actual
Net Cost of Operations from $345,562 in 2012/2013 to $230,068 in 2013/2014
(saving of $115,494)
Actual revenue increased from
$132,991 in 2012/2013 to $247,951 in 2013/2014 (increase of $114,960 or 86.4%)
Actual expenditure was steady from
$478,553 in 2012/2013 to $478,019 in 2013/2014
The July to December 2014 financial operations results are
shown in the table below:
|
Job No
|
Description
|
Actual Dec
2014 $
|
Budget 2014/2015
$
|
Actual at Dec
2014 to budget 2014/15
|
|
|
Operating Revenue
|
|
|
|
|
1281
|
Multipurpose Centre Room Hire
|
45,315
|
57,400
|
79%
|
|
1282
|
Multipurpose Centre Court 1 Hire
|
35,006
|
47,200
|
74%
|
|
1283
|
Multipurpose Centre Court 2 Hire
|
31,580
|
47,200
|
67%
|
|
1284
|
Multipurpose Centre Other Charges
|
49,795
|
84,000
|
59%
|
|
|
Total Operating Revenue
|
161,696
|
235,800
|
69%
|
|
|
|
|
|
|
|
|
Operating Expenditure
|
|
|
|
|
2431
|
Multipurpose Centre Management Costs
|
125,696
|
305,600
|
41%
|
|
2432
|
Multipurpose Centre Building Maintenance
|
18,840
|
49,400
|
38%
|
|
2433
|
Multipurpose Centre Operational Costs
|
83,310
|
114,600
|
73%
|
|
|
Total Operating Expenditure
|
227,846
|
469,600
|
49%
|
|
|
|
|
|
|
|
|
Actual Net Cost of BRSCC Operations
|
66,150
|
233,800
|
28%
|
|
|
|
|
|
|
The table above shows that year to date as at 31 December
2014, that the BRSCC Multi Purpose Centre has achieved 69% of the income shown
in the 2014/2015 budget. This good operating result is due to the increase in
use across all of the hireable spaces in the facility, i.e. courts,
meeting/function rooms, food and beverage sales.
Expenditure year to date as at December 2014 is at 49% of
the 2014/2015 budget.
If these trends continue for the January to June 2015
period, the net operating cost for operations at the BRSCC could be around
$132,300. This would represent a reduction of $101,500 from the 2014/2015
budget, and $97,768 less than the operating deficit from 2013/2014.
Please note that the income generated from the hire of the
facility is seasonal and may change in the next half of the year. The BRSCC
staff are constantly working on keeping the regular hirers and attracting
additional bookings for the January to June 2015 period.
Statutory and Policy
Compliance Implications
The
Local Government Act 1993 can be accessed at
www.legislation.nsw.gov.au/fullhtml/inforce/act+30+1993+CD+0+N
Distributed 12/02/15
