Cr Ros Heit - Finance Portfolio Report - 14 June 2017

Financial Report

Council’s actual financial results as at 31 May 2017 are presented in the comprehensive income statement alongside the Fourth Quarter Proposed Operating Budget.  The recurrent revenue and expense items are within budget.

The financial ratios for cash, operating cash, working capital and funded long term liabilities are all within the industry guide. The sustainability ratios are also presented in this report as key performance indicators.  Council is able to achieve the targeted ratios for operating surplus, asset sustainability and net financial liabilities.

Fourth Quarter Operating Budget Review

A review of the 2016-2017 Operating Budget has been undertaken as at 31st of May 2017.  The proposed budget forecasts an operating surplus of $1,011,381.  As compared to the 3rd  Quarter Revised Budget, there is an increase in the net operating result of $588,850 mainly due to the increase in net revenue from Road Maintenance Performance Contract (RMPC) and Road Performance Contract (RPC) and the increase in waste management revenue from commercial and domestic waste disposal fees, rates waste collection and other miscellaneous income. 

The proposed decrease in capital revenue amounting to $400,158 relates to a decrease in the projected capital grant for the Kingaroy Waste Water Treatment Plant.

The long term forecast for the comprehensive income statement, balance sheet and cash flow statement was also revised following the budget adjustments for the fourth quarter review.   The indexation was based on the 2016-2017 original budget assumptions.

Fourth Quarter Capex Budget Review

There is no significant change in the proposed 4th Quarter Capex Budget.  The proposed budget remains at $34,042,735.  The year- to- date actual capital expenditure amounts to $19.1 Million and year-to-date commitments amount to $4.7 Million. 

Fees and Charges Schedule for FY 2017-2018

Fees and charges is one of the sources of Council’s self-generated revenue.  These relate to regulatory and commercial fees for services that are provided by Council and are used for cost recovery and to fund the cost of service delivery.

For FY 2017/2018 the proposed Fees and Charges have been generally increased by 2%.  A schedule of the actual 2016/2017 and proposed 2017/2018 Fees and Charges are attached to the report and are being presented for comparison purposes. The 2017/2018 Fees and Charges for adoption are to be effective from the 1st of July 2017.

Nanango Historical Society request for rate remission

The Nanango Historical Society forwarded a request for a rate remission on their property located at 42 Gipps Street Nanango. The Local Government Regulation 2012 and Council’s Rate Remission policy allows an exemption for not-for profit organisations from general rates and remission of levies and charges.  The Nanango Historical Society submitted to Council their constitution and confirmation of their not-for-profit status. 

It is recommended that Council approve the Nanango Historical Society’s request for rate remission.

Works For Queensland Project

The total grant amounts to $4.26 Million of which $2.5 Million has already been received by Council.  As at 31st of May, the actual expenditure amounts to $566,004 and commitments amount to $444,193 or a total of $1,010,197.