Deed of Novation
Section 94 Original Budget
Current Budget
Proposed Revised Budget
Proposed Contra variations
Proposed Other Variations
Ref
$000 $000 $000 $000 $000
Opening Balance
(Surplus)/Deficit (181,220) (181,220) (181,220) - -
Contributions (25,800) (25,800) (25,800) - -
Interest (1,407) (3,659) (3,659) - -
Expenditure 111,267 135,770 135,904
- 134 7
Closing Balance (Surplus)/Deficit
(97,160) (74,909) (74,775) 0 134
Section 94 funds invested as at 1 July 2016 amounted to $181.2m.
If all the above expenditure and income materialises in this financial year, it is anticipated that Section 94 funds will amount to $74.8m as at 30 June 2017.
Real Estate Assets
This section relates to a summary of Property Development Activities, due to the sensitive nature of these transactions.
ORDINARY MEETING OF COUNCIL 22 NOVEMBER, 2016
Real Estate Assets Original
Budget Current
Budget Proposed Revised Budget
Proposed Contra variations
Proposed Other Variations
Ref
$000 $000 $000 $000 $000
Development Cost 0 40,357 40,357 - -
Funded by transfer
from Reserves 0 (40,357) (40,357) 0 0
Sales (140,000) (149,273) (149,273) - -
Transfer To Reserves (Sale Proceeds
when realised) 140,000 149,273 149,273 0 0
Reserve Funds (Internal Restrictions)
Reserve funds as at 30 June 2016 amounted to $127.9m. Balance projected after October Budget Review will total $217.0m.
All Cash & Investments including Section 94, Trust fund and unrestricted cash is detailed in Attachment 1 Page 10.
CONCLUSION
This Opinion by the Responsible Accounting Officer is required under the Local Government (General) Regulation 2005 – Clause 203(2).
Council’s Chief Financial Officer, as the Responsible Accounting Officer, advises that the Council’s projected financial position is satisfactory.
Furthermore the investments shown in Attachment 1 page 10 has been made is in accordance with the Act, the Regulations and Council’s actual Investment Policy.
Council’s cash and bank balances are reconciled daily to Council’s bank balances.
IMPACTS Financial
The proposed variations listed above will result in a Recurrent Budget Surplus of $79k.
The proposed variations listed above will result in a Total Works Program Budget of
$175.7m.
Hills Future
The impact of this budget will ensure that short term actions are aligned with future direction. It also demonstrates Council's transparency and ability to effectively manage funds.
ORDINARY MEETING OF COUNCIL 22 NOVEMBER, 2016
RECOMMENDATION
The proposed budget variations in Attachment 1, Pages 6 to 10 and the variations detailed in page 11-29 be adopted.
ATTACHMENTS
Page 1-5 Financial Summaries Page 6–10 Budget Review Statements
Page 11–29 Capital Works Expenditure and Comments on Variations Page 30 Key Performance Indicators
Page 31 Listing of Contracts & Other Expenses
ORDINARY MEETING OF COUNCIL 22 NOVEMBER 2016
ATTACHMENT 1
The Hills Shire Council
PAGE 1
FY15/16 FY16/17 FY16/17 Description FY15/16 FY16/17 % Actual/
Actual Current Revised YTD Total Revised
July-June Budget Budget Actual YTD Budget
$'000 $'000 $'000 $'000 $'000
RECURRENT OPERATIONS
(146,705) (142,254) (144,412) Income (114,829) (107,620) 75%
116,970 125,712 125,935 Expenditure 38,728 43,974 35%
(29,736) (16,541) (18,477) Budget (Surplus)/Deficit (76,101) (63,645)
29,437 17,303 19,439 Transfer to/(from) Reserves 21,619 17,303 89%
(52) 0 0 Transfer from Prior Years Section 94 0 0 0%
(1,737) (1,041) (1,041) Transfer from Prior Years Income (1,927) (1,042) 100%
(2,088) (279) (79) Budget Result (Surplus)/Deficit (56,408) (47,383)
CAPITAL PURCHASES
3,138 4,595 4,595 Capital Purchases 672 1,558 34%
(1,841) (3,323) (3,323) Transfer to/ (from) Plant Reserve (3,286) (3,323) 100%
(1,297) (1,272) (1,272) Sale of Plant Assets (313) (488) 38%
0 0 0 Net Capital Purchases (2,928) (2,253)
CAPITAL WORKS
35,123 108,408 108,300 New & Renewal 6,138 20,724 19%
22,513 62,804 62,804 Land Acquisition 4,490 27,442 44%
3,695 4,609 4,609 Project Development & Delivery 1,273 1,530 33%
61,331 175,821 175,713 Total Expenditure 11,901 49,696 28%
(4,519) (3,887) (3,887) Grants and Contributions 0 0 0%
(27,094) (36,156) (35,914) Transfer to/(from) Reserves (36,987) (36,156) 100%
(29,568) (135,770) (135,904) Transfer from Prior Years Section 94 0 0 0%
(150) (8) (8) Transfer from Prior Years Income 0 0 0%
(61,331) (175,821) (175,713) Total Funding (36,987) (36,156) 21%
(0) 0 0 Net Capital Expenditure (25,086) 13,539
SECTION 94
(117,452) (181,220) (181,220) Opening Balance (Surplus)/Deficit (117,452) (181,220)
(89,147) (25,800) (25,800) Income (18,336) (13,317) 52%
(4,241) (3,659) (3,659) Interest Received/(Paid) (1,225) (1,668) 46%
29,620 135,770 135,904 Expenditure 5,547 39,205 29%
(63,768) 106,311 106,445 Movement for the year (14,013) 24,220
(181,220) (74,909) (74,775) Section 94 Balance (Surplus)/Deficit (131,465) (157,000)
REAL ESTATE ASSETS
145,354 166,332 166,332Assets at Book Value 1 July 2016 12,481 166,332
20,978 40,357 40,357 Development Costs 0 38,035 94%
20,978 (40,357) (40,357) Transfer from Reserves 0 (38,035) 94%
0 (149,273) (149,273) Sales 0 (140,473) 94%
0 149,273 149,273 Transfer to Reserves 0 140,473 94%
* Includes income and expenditure relating to Transitional Agreements with City Of Parramatta.
Actual vs Previous Years Data
Section 94 of the Environment Planning Assessments Act enables Councils to prepare Developer Contribution Plans to provide public amenities such as Open Space, Roads, Community Buildings etc. The Contributions are levied via Development Consents. There are currently 13 Contribution Plans. Contributions must be treated as revenue when received, but requires to be held as a Restricted Asset until expended. Estimated future expenditure amounts to $1.4bn.
If all planned expenditure and income materialises in this financial year, it is anticipated that Section 94 funds will amount to $74.8m as at 30 June 2017.
ORDINARY MEETING OF COUNCIL 22 NOVEMBER 2016
ATTACHMENT 1
The Hills Shire Council
Statement of Income By Program PAGE 2
FY15/16 FY16/17 FY16/17 Description FY15/16 FY16/17 % Actual/
Actual Current Revised YTD Total Revised
July-June Budget Budget Actual YTD Budget
$'000 $'000 $'000 $'000 $'000
REVENUE - RECURRENT
(69,976) (63,544) (63,544) 10 - General Management (71,061) (63,031) 99%
(191) (28) (40) 12 - Internal Audit & Risk Management (31) (28) 71%
(6) (2) (2) 13 - Executive Services (1) (1) 66%
(12,006) (11,064) (12,190) 21 - Financial Operations (5,780) (3,741) 31%
(2,807) (2,383) (2,383) 22 - Infrastructure & Transport Planning (1,665) (1,364) 57%
(10) 0 0 24 - Workforce Strategy & Business Improvement (7) 0 0%
(1,233) (674) (674) 25 - Forward Planning (597) (238) 35%
(61) (64) (67) 26 - Community Planning & Special Infrastructure Project (48) (62) 92%
(190) (56) (56) 31 - Legal Services (46) (40) 70%
(3,311) (4,226) (5,298) 32 - Property Development & Management (957) (2,720) 51%
(4,505) (4,492) (4,492) 34 - Children's Services (1,692) (1,638) 36%
(507) (610) (610) 51 - Fire Control (11) (8) 1%
(0) 0 0 53 - Infrastructure Projects (0) 0 0%
(456) (433) (433) 55 - Fleet Management (122) (103) 24%
0 (12) (12) 58 - Facilities Operations 0 (12) 100%
(2,812) (1,890) (1,890) 59 - Place Management (621) (182) 10%
(2,779) (2,427) (2,427) 71 - Development Assessment Services (918) (870) 36%
(4,839) (4,028) (4,028) 72 - Subdivision & Development Certification (1,394) (1,341) 33%
(485) (487) (487) 73 - Environmental Health Services (309) (308) 63%
(24,975) (27,879) (27,879) 74 - Resource Recovery (24,823) (25,997) 93%
(1,438) (1,130) (1,130) 75 - Regulatory Services (409) (393) 35%
(3) 0 0 81 - Information Technology (2) 0 0%
(1) (1) (1) 82 - Customer Relations (0) (0) 36%
(4,267) (4,195) (4,138) 84 - Community & Economic Development (1,081) (1,593) 39%
(619) (547) (547) 85 - Library Services (77) (69) 13%
(2,433) (5,309) (5,309) 88 - South of M2 (469) (851) 16%
(6,796) (6,774) (6,775) 35 - Hills Community Care (2,707) (3,030) 45%
(146,705) (142,254) (144,412) Total Recurrent Revenue (114,829) (107,620) 75%
(136,758) (29,687) (29,687) Externally/Internally Restricted Income (21,138) (16,650) 56%
0 (558) (558) Profit on Sales of Asset (174) (664) >100%
(283,463) (172,499) (174,657) Revenue as Per Income Statement (136,141) (124,934) 72%
Notes
* Includes income and expenditure relating to Transitional Agreements with City Of Parramatta.
Actual vs Previous Years Data
ORDINARY MEETING OF COUNCIL 22 NOVEMBER 2016
ATTACHMENT 1
The Hills Shire Council
Actual vs Previous Years Data
Statement of Expenditure By Program PAGE 3
FY15/16 FY16/17 FY16/17 Description FY15/16 FY16/17 % Actual/
Actual Current Revised YTD Total Revised
July-June Budget Budget Actual YTD Budget
$'000 $'000 $'000 $'000 $'000
EXPENDITURE - RECURRENT
2,756 3,330 3,330 10 - General Management 886 909 27%
577 751 752 12 - Internal Audit & Risk Management 154 301 40%
1,345 2,259 2,259 13 - Executive Services 395 556 25%
383 413 413 20 - Strategic Planning Group Support 128 123 30%
7,407 7,793 7,919 21 - Financial Operations 3,840 3,983 50%
6,526 6,626 6,666 22 - Infrastructure & Transport Planning 2,101 2,152 32%
1,189 1,303 1,303 23 - Marketing & Communications 384 476 37%
2,265 1,855 1,855 24 - Workforce Strategy & Business Improvement 652 755 41%
3,549 4,138 4,138 25 - Forward Planning 1,226 1,265 31%
1,548 1,909 1,912 26 - Community Planning & Special Infrastructure Project 503 568 30%
468 545 545 31 - Legal Services 205 246 45%
3,066 3,410 3,446 32 - Property Development & Management 1,114 1,068 31%
4,632 4,797 4,797 34 - Children's Services 1,548 1,451 30%
3,684 3,985 3,985 51 - Fire Control 1,573 1,695 43%
1,182 1,299 1,299 53 - Infrastructure Projects 382 434 33%
4,638 4,293 4,293 55 - Fleet Management 1,502 1,386 32%
6,079 6,784 6,792 58 - Community Buildings 1,508 4,199 62%
29,714 27,656 27,660 59 - Place Management 9,127 9,788 35%
415 435 435 70 - Environment & Planning Group Support 131 136 31%
5,157 5,761 5,761 71 - Development Assessment Services 1,727 1,742 30%
3,415 3,472 3,472 72 - Subdivision & Development Certification 1,111 1,194 34%
3,067 3,212 3,212 73 - Environmental Health Services 1,116 1,227 38%
26,561 28,394 28,394 74 - Resource Recovery 8,498 8,773 31%
3,136 3,348 3,348 75 - Regulatory Services 1,043 1,108 33%
366 391 391 80 - Customer Services Group Support 126 132 34%
5,409 6,242 6,242 81 - Information Technology 1,966 2,354 38%
3,391 3,431 3,431 82 - Customer Relations 1,214 1,130 33%
11,979 12,940 12,943 84 - Community & Economic Development 4,004 4,227 33%
6,468 6,561 6,561 85 - Library Services 2,210 2,309 35%
2,188 5,338 5,338 88 - South of M2 333 810 15%
8,555 8,789 8,790 35 - Hills Community Care 2,817 2,702 31%
(44,142) (45,749) (45,749) Internal Recoveries (14,798) (15,226) 33%
116,970 125,712 125,935 Total Recurrent Expenditure 38,728 43,974 35%
(95) 0 0 Contingent Liability 0 0 0%
12,855 19,160 19,160 Depreciation 4,349 6,346 33%
3,012 0 0 Loss on Sales of Asset 0 0 0%
132,741 144,872 145,095 Expenditure as Per Income Statement 43,077 50,320 35%
Notes
* Includes income and expenditure relating to Transitional Agreements with City Of Parramatta.
ORDINARY MEETING OF COUNCIL 22 NOVEMBER 2016
ATTACHMENT 1
The Hills Shire Council
Income Statement PAGE 4
FY15/16 FY16/17 FY16/17 Description FY15/16 FY16/17 % Actual/
Actual Current Revised YTD Total Revised
July-June Budget Budget Actual YTD Budget
$'000 $'000 $'000 $'000 $'000
RECURRENT Revenue
(95,579) (87,784) (87,784) Rates & Annual Charges (97,081) (85,883) 98%
(20,307) (18,877) (18,861) User Charges & Fees (7,132) (6,894) 37%
(5,732) (5,496) (6,496) Investment Revenues - Operational (2,038) (2,155) 33%
(4,454) 0 0 Investment Revenues - Restricted/Capital (1,225) (1,610) >100%
(6,361) (6,301) (7,349) Other Revenues - Operational (1,366) (3,194) 43%
(1,731) 0 0 Other Revenues - Restricted/Capital (1,464) (54) >100%
(18,726) (23,796) (23,922) Grants & Contributions - Operational (7,212) (9,494) 40%
(130,572) (29,687) (29,687) Grants & Contributions - Restricted/Capital (18,450) (14,986) 50%
0 (558) (558) Profit From Disposal of Assets (174) (664) >100%
(283,463) (172,499) (174,657) Total Revenue (136,141) (124,934) 72%
Expenditure
52,025 56,068 56,057 Employment Costs 17,968 18,272 33%
31,050 42,883 43,021 Materials, Contracts & Plant Running Exp 9,231 16,342 38%
12,855 19,160 19,160 Depreciation and Amortisation 4,349 6,346 33%
33,800 26,762 26,857 Other Expenses 11,529 9,361 35%
3,012 0 0 Loss From Disposal of Assets 0 0 0%
132,741 144,872 145,095 Total Expenditure 43,077 50,320 35%
(150,722) (27,626) (29,562) Operating Result (Surplus)/Deficit (93,064) (74,614) Add
29,437 17,303 19,439 Transfer to/(from) Reserves 21,619 17,303 89%
(52) 0 0 Transfer from Prior Years Section 94 0 0 0%
(1,737) (1,041) (1,041) Transfer from Prior Years Grants (1,927) (1,042) 100%
Less
(12,855) (19,160) (19,160) Depreciation & Amortisation (4,349) (6,346) 33%
95 0 0 Contingent Liability 0 0 0%
4,454 0 0 Investment Revenues - Restricted/Capital 1,225 1,610 >100%
1,731 0 0 Other Revenues - Restricted/Capital 1,464 54 >100%
130,572 29,687 29,687 Grants & Contributions - Restricted/Capital 18,450 14,986 50%
(3,012) 558 558 Profit/Loss From Disposal of Assets 174 664 >100%
(2,088) (279) (79) Net Budget Result (Surplus)/Deficit (56,408) (47,383) Notes
* Comments on above references are detailed in Business Paper Report to this attachment.
* Includes income and expenditure relating to Transitional Agreements with City Of Parramatta.
Actual vs Previous Year Data
ORDINARY MEETING OF COUNCIL 22 NOVEMBER 2016
ATTACHMENT 1