Cr Ros Heit - Finance Portfolio Report - 16 August 2017

Financial Report

The financial statements are as at the 31 July 2017.

These reports are indicative given that it has only been one month of trading into the 2018 financial year.  The financial ratios which have been worked through with Council are now in use.  It is interesting to note at this point that the results are not meaningful when shown graphically as there is no trend data for this financial year and some data is not yet available.  Also some graphs only have meaning annually.  The ratios produced however are positive. 

Capex Report

The capex report for this month focusses on the carryover projects from the 2017 financial year.  The proposed carryovers are itemised in the agenda.  A total of $8.259 million will be carried over into this current financial year. 

When the final actual expenditure is compared to the budget for 2016/2017 the difference is $13.626 million.  The difference between this and the carryover amount is made up largely as follows:

• $1.43m – Works for Queensland (Grant funded),
• $  .76m – Bridge Replacement Program (Loan funded),
• $  .30m – Other Infrastructure Loan Funded Projects,
• $2.562m – Kingaroy Waste Water Project.

In respect to the Kingaroy Waste Water Facility this project is mostly completed with an estimated $600,000 left to spend which will be budgeted for at the first quarter review. There are no funds to bring forward. 

With respect to the three other items these have already been included in the 2017/18 adopted budget.  The 17/18 budget will be reviewed at the end of the first quarter to reflect the 2016/17 actual result.  The funding for these projects is held as restricted cash at 30 June 2017.

Works For Queensland Project

As at 31 of July the actual project expenditure amounts to $2.056m while commitments were $594,000.  A total $2.650m spend of the $4,260,000 ($4.26 Million) grant.

Rating

The proposed issue date for the first six monthly rate levy for the 17/18 financial year is 22 August with the final day for discount being Tuesday 26 September 2017. 

For the information of the meeting I advise that at 30 June 2017 there were approximately 10% of ratepayers in arrears which in dollar terms equates to $5.3M.  The majority of people do pay rates on time or make payment arrangements to pay.  However, the burden of this level of rate arrears impacts on all ratepayers. To reduce the financial drain on Council’s Balance Sheet this year, Council will introduce a new debt recovery process. Council has engaged the services of Recoveries & Reconstruction Australia Pty Ltd to assist in managing Council’s rate arrears. The principle idea of the debt recovery processes will be to facilitate the establishment of payment arrangements to assist ratepayers to manage the debt. Unfortunately it will be necessary in a small number of cases where suitable payments arrangement cannot be made or a ratepayer does not make a reasonable attempt to make payments, then formal debt recovery processes will need to be enforced.

I encourage ratepayers to use the many options which are available to pay rates to take advantage of the discount.  Ratepayers are also encouraged to make arrangements to pay rates where full payment cannot be made within the discount period.