Cr Ros Heit - Finance Portfolio Report - 18 January 2017

Financial Report

Council’s actual financial results as at 31 December 2016 are presented in the comprehensive income statement alongside the Second Quarter Proposed Operating Budget.  

The financial ratios for cash, operating cash, working capital and funded long term liabilities are all within the industry guide. 

All revenue items are within budget except for Interest Received and Other Income for which relevant adjustments have been incorporated in the proposed operating budget. Total recurrent expenses are within budget limits.

Second Quarter Operating Budget Review

A review of the 2016-2017 Operating Budget has been undertaken as at 31 December 2016.  The proposed budget forecasts an operating surplus of $525,170.  The breakdown of the operating surplus is reflected in the report attached to the Council Meeting Agenda.

As compared to the 1st Quarter Revised Budget, the Revenue decreased by $622,693 mainly on account of the decrease in budgeted interest income resulting from lower investment interest rates.  The savings generated from employee benefits and materials and services totalling $269,179 have offset the decrease in revenue, resulting to a net decrease in operating surplus of $353,514.  In comparison to the Original Budget, the operating surplus in the 2nd Quarter Proposed Budget reflects a decrease of $264,521.

The proposed budget change in capital revenue is mainly due to a decrease in the budgeted capital grant for the Kingaroy Waste Water Treatment Plant; while the proposed increase in capital income is on account of a budget for the sale proceeds of Council owned freehold land amounting to $45,455.

Second Quarter Capex Budget Review

The 2016-2017 Capex Budget review resulted to a proposed $1,037,700 decrease in the capital expenditure budget from $32.998 Million to $31.961 Million.

The decrease in the Road and Drainage budget of $1,043,700 and the increase in Buildings amounting to $6,000 account for the proposed decrease in the capex budget.

The reduction in the budget for bridge replacement amounting to $682,200 and the net decrease in the projected expenditure for the Blackbutt Town Development of $512,000 mainly represent the budget decrease in Road and Drainage. These amounts will be transferred from the 2016-2017 Restricted Cash and the capex budget for these projects will be provided in 2017-2018. 

The movement in Buildings is due to the increase in Council’s counterpart funding for the refurbishment of the Kingaroy Reception Room roof from $50,000 to $56,000. 

Year-to-date actual capital expenditures amount to $10.691 million and commitments total $6.994 million.

Six-monthly Rate Notice

The final six-monthly rate notice for the financial year 2016-2017 will be issued on 21st February with a discount date on 28th March.