Search our site...

You are here

Finance Portfolio Report - 15 June 2016

Back
Published
17 June 2016

Fourth Quarter Operational Budget Revision A review of the 2015-2016 Operational Budget has been undertaken and the proposed amendment results in an operating surplus of $1,836,921. The following tabl

Fourth Quarter Operational Budget Revision

A review of the 2015-2016 Operational Budget has been undertaken and the proposed amendment results in an operating surplus of $1,836,921.

The following table shows the projected 4th Quarter result compared to the original and amended budgets:

Operating Budget

 

Program

15/16 Original Budget

15/16 First Quarter Amendment

15/16 Second Quarter Amendment

15/16 Third Quarter Amendment

15/16 Fourth Quarter Proposed

General Operations

($651,530)

$199,522

$81,835

($31,777)

$0

Plant & Fleet

$348,275

$308,835

$308,515

$321,175

$884,660

Water

$258,338

$609,654

$609,405

$556,775

$556,775

Waste Water

$93,383

$146,420

$113,928

$73,058

$73,058

Waste

$10,826

$10,826

$10,582

$54,398

$322,428

Net Result

$59,292

$1,275,257

$1,124,265

$973,629

$1,836,921

Compared to the 3rd Quarter Amended Budget, the 4th Quarter budget review resulted in an increase in the estimated Net Surplus of $863,292. The adjustment is mainly due to the following:

 

 

Increase or (Decrease) in Operating Surplus
  • Decrease in Fees & Charges due to reduction in tourist park income, fuel sales, saleyard fees, animal fees and cemetery income

($78,837)
  • Decrease in Interest Received due to lower interest income from investments because of decline in interest rates and the late draw down of the $2.7 million borrowing.

($182,734)
  • Decrease in Sales Revenue resulting from reduction in public health income from immunisation

($14,000)
  • Decrease in Grants due to adjustments to the Regional Rail Corridors Grant to reflect operational and capital works and an adjustment to the RADF Arts Grant to correct the 3rd Quarter Budget

($201,000)
  • Increase in waste collection rates

$43,654
  • Increase in Other Income from scrap metal recycling revenue

$110,799
  • Adjustment to Materials and Services for: internal plant charges to reflect actual recoveries , allocation of dividend to General Operations from Plant & Fleet and additional property maintenance expenditures

$ 1,185,410

TOTAL

$863,292

Fourth Quarter Capital Expenditure Budget Revision

A review of the 2015/216 Capital Budget has been undertaken to take into account any necessary revisions and resulted to a proposed budget amounting to $ 56,785,974.

The table below shows the proposed Capex Budget compared to the original and amended budgets:

Capital Expenditure Budget

 

Activity

 

Original Budget

Amended Budget as at November 2015

Amended Budget as at

February  2016

Fourth Quarter Proposed

Buildings

$2,476,000

$3,984,300

$4,331,800

$5,187,939

Plant & Equipment

$2,524,136

$3,775,136

$3,960,136

$3,395,136

Roads & Drainage

$12,060,000

$17,099,978

$17,930,578

$17,930,578

Water

$7,350,000

$9,963,521

$10,330,321

$10,330,321

Waste Water

$19,400,000

$19,420,000

$19,420,000

$19,420,000

Waster

$30,000

$522,000

$522,000

$522,000

Total

$43,840,136

$54,764,935

$56,494,835

$56,785,974

The proposed amendments resulted to an increase in the Capex Budget by $ 291,139 mainly on account of the following:

Increase in Regional Rail Trail Project ( with corresponding $980k funding grant)

$ 856,139

Reduction in plant and fleet purchases

($565,000)

Total

$291,139

To date, the actual capital expenditures and commitments amount to $49,317,435; this is 87% of the proposed $56,785,974 Capex Budget.

2016-2017 Budget

The 2016-2017 Budget was presented by the Mayor to Council on the 10th June and will be adopted by Council at the scheduled Budget Meeting on the 27th of June. 

Rate Collection Policy

The Rate Collection Policy was reviewed and presented for discussion during the Finance Portfolio Briefing to Council held on the 1st of June. The major change to the policy is the formal recognition of the established practice in relation to interest charges on approved rate payment arrangements when conditions have been breached.