ORDINARY MEETING OF COUNCIL 23 JUNE, 2015
Summary funding position is detailed below.
ORDINARY MEETING OF COUNCIL 23 JUNE, 2015
Reserve Funds (Internal Restrictions)
Reserve funds as at 30 June 2014 amounted to $118.22m. Balance projected after May Budget Review will total $132.8m.
All Cash & Investments including Section 94, Trust fund and unrestricted cash is detailed in Attachment 1 Page 5.
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 5 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 $54k.
The proposed variations listed above will result in a Total Works Program Budget of
$89.7M.
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.
RECOMMENDATION
The proposed budget variations in Attachment 1, Pages 1 to 5 and the variations detailed in page 7-22 be adopted.
ATTACHMENTS
Page 1 Summary of expenditure and income on Recurrent Operations, Capital Purchases, Capital Works, Section 94 and Real Estate Assets.
Pages 2-3 Details the Recurrent Operations Expenditure & Income by Business Program (Outputs)
Page 4 Income Statements (Statutory Accounts Format) with reconciliation to Budget Result
Page 5 Statement of Cash & Investments
Page 6 Balance Sheet
Page 7 - 22 Capital Works Expenditure and Comments on Variations Page 23 Key Performance Indicators
Page 24 Listing of Contracts & Other Expenses
ORDINARY MEETING OF COUNCIL 23 JUNE, 2015
ATTACHMENT 1
The Hills Shire Council
Budget Summary PAGE 1
Description Original Approved Changes Current YTD Actual Projected Recommended Changes Ref
Budget Quarter 1 Quarter 2 Quarter 3 Quarter 4 Budget Include Revised For Council Resolution *
2014/15 Review Review Review Review 2014/15 Commitments Budget Contra Var. Other Var.
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
RECURRENT OPERATIONS
Income (135,020) (771) (1,827) 348 (329) (137,598) (136,911) (138,187) 36 (624) 1-5
Expenditure 112,174 4,490 1,619 561 202 119,046 104,120 119,856 393 417 6-7
Budget (Surplus)/Deficit (22,845) 3,719 (209) 910 (126) (18,552) (32,791) (18,331) 429 (208)
Transfer to/(from) Reserves 22,793 (2,623) 12 161 1,437 21,781 21,781 22,024 (124) 367 8
Transfer from Prior Years Section 94 0 (35) 0 15 0 (20) 0 (20) 0 0
Transfer from Prior Years Income 0 (1,107) 59 (882) (1,332) (3,263) (3,565) (3,727) (304) (161) 9
Budget Result (Surplus)/Deficit (52) (46) (138) 204 (22) (54) (14,576) (54) 0 (1)
CAPITAL PURCHASES
Capital Purchases 3,318 746 31 0 0 4,095 3,016 4,024 (71) 0
Transfer to/ (from) Plant Reserve (2,284) (746) (12) 0 0 (3,042) (3,042) (3,002) 39 0
Sale of Plant Assets (1,034) 0 (19) 0 0 (1,054) (975) (1,022) 32 0
Transfer to Reserves 0 0 0 2,097 0 2,097 2,097 2,097 0 0
Sale of Fixed Assets 0 0 0 (2,097) 0 (2,097) (2,097) (2,097) 0 0
Net Capital Purchases 0 0 0 0 0 0 (1,000) 0 0 0
CAPITAL WORKS
New & Renewal 40,301 21,608 89 3,471 56 65,525 34,593 65,519 0 (6) 10-12
Land Acquisition 18,789 4,829 0 (3,495) 0 20,122 6,135 20,122 0 0
Project Development & Delivery 3,252 853 25 0 0 4,130 3,548 4,103 (27) 0
Total Expenditure 62,342 27,290 114 (24) 56 89,777 44,275 89,744 (27) (6)
Grants and Contributions (1,332) (785) 0 3 (20) (2,133) 0 (2,132) 0 1 11d
Transfer to/(from) Reserves (25,388) (9,107) (114) 71 3,152 (31,386) (31,386) (31,414) 0 (28) 10-12
Transfer from Prior Years Section 94 (35,622) (16,042) 0 0 (3,188) (54,852) 0 (54,825) 27 0
Transfer from Prior Years Income 0 (1,356) 0 (50) 0 (1,406) 0 (1,373) 0 33 11c
Total Funding (62,342) (27,290) (114) 24 (56) (89,777) (31,386) (89,744) 27 6
Net Capital Expenditure 0 0 0 0 (0) 0 12,889 0 0 0
SECTION 94
Opening Balance (Surplus)/Deficit (60,752) 0 0 0 0 (60,752) (60,752) (60,752) 0 0
Income (15,824) 0 0 (44,176) 0 (60,000) (51,285) (60,000) 0 0
Interest Received/(Paid) (1,254) 0 0 (546) 0 (1,800) (2,801) (1,800) 0 0
Expenditure 35,622 16,077 0 (15) 3,188 54,872 16,809 54,845 (27) 0
Movement for the year 18,544 16,077 0 (44,736) 3,188 (6,928) (37,277) (6,955) (27) 0
Section 94 Balance (Surplus)/Deficit (42,208) 16,077 0 (44,736) 3,188 (67,680) (98,030) (67,707) (27) 0
REAL ESTATE ASSETS
Assets at Book Value 1 July 2014 10,481 0 0 0 0 10,481 10,481 10,481 0 0
Development Costs 2,750 349 0 0 0 3,099 461 3,099 0 0
Transfer from Reserves (2,750) (349) 0 0 0 (3,099) (461) (3,099) 0 0
Sales (9,275) (2,090) (755) 1,600 0 (10,520) (10,521) (10,520) 0 0
Transfer to Reserves 9,275 2,090 755 (1,600) 0 10,520 10,521 10,520 0 0
Notes
* Comments on above references are detailed in Business Paper Report to this attachment.
Monthly Budget Review 2014/2015
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 11 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 $1.5bn.
It is anticipated that $ 34m will be carried over to the next financial year due to the complexity of the jobs in Samantha Riley Drive upgrades and traffic lights at Arthurs/Seven Hills Rd,
Glenhaven/Old Northern Road and Showground/Pennant Street. If all the other expenditure and income materialises in this financial year, it is anticipated that Section 94 funds may be greater than
$100m as at 30 June 2015.
ORDINARY MEETING OF COUNCIL 23 JUNE, 2015
ATTACHMENT 1
The Hills Shire Council
Statement of Income By Program PAGE 2
Description Original Approved Changes Current YTD Actual Projected Recommended Changes Ref
Budget Quarter 1 Quarter 2 Quarter 3 Quarter 4 Budget Include Revised For Council Resolution *
2014/15 Review Review Review Review 2014/15 Commitments Budget Contra Var. Other Var.
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
REVENUE - RECURRENT
10 - General Management (68,463) 0 (311) (200) 0 (68,974) (68,819) (68,974) 0 0
12 - Internal Audit & Risk Management 0 (46) 0 (43) 0 (90) (90) (90) 0 0
13 - Executive Services (1) 0 0 0 0 (1) (3) (1) 0 0
21 - Financial Operations (11,072) 43 0 (102) 0 (11,131) (12,359) (11,144) (13) 0
22 - Infrastructure & Transport Planning (1,847) (276) 0 (3) 0 (2,126) (1,856) (2,224) 0 (98) 2
24 - Workforce Strategy & Business Improveme 0 (4) 0 (34) 0 (38) (38) (38) 0 0
25 - Forward Planning (513) 0 (239) 14 (85) (823) (823) (823) 0 0
26 - Community Planning & Special Infrastructu (328) 276 0 0 0 (52) (60) (60) (8) 0
31 - Legal Services (54) (9) (29) (100) 0 (193) (204) (218) (25) 0
32 - Property Development & Management (1,205) (133) (583) 49 0 (1,872) (1,510) (1,647) 233 (7) 1
34 - Children's Services (5,352) (99) 0 0 0 (5,451) (5,004) (5,485) (34) 0
51 - Fire Control (515) 0 (12) 10 0 (517) (498) (517) 0 0
53 - Infrastructure Projects 0 0 0 0 0 0 (1) 0 0 0
55 - Fleet Management (418) (16) 0 0 0 (434) (384) (434) 0 0
58 - Community Buildings (2,548) (1,068) 882 474 (58) (2,318) (2,119) (2,334) (17) 0
59 - Place Management (1,594) (388) (224) (48) (181) (2,435) (2,497) (2,520) 0 (85) 3
71 - Development Assessment Services (1,934) 0 (266) (220) 0 (2,420) (2,434) (2,564) 0 (144) 4
72 - Subdivision & Development Certification (2,299) 0 (763) (170) 0 (3,232) (3,247) (3,491) 0 (259) 4
73 - Environmental Health Services (548) 0 (10) 30 0 (529) (512) (537) 0 (8) 5
74 - Resource Recovery (25,067) (92) (200) 485 0 (24,874) (24,611) (24,976) (102) 0
75 - Regulatory Services (1,136) 0 0 150 0 (986) (912) (1,009) 0 (23) 4,5
81 - Information Technology 0 0 0 (2) 0 (2) (2) (2) 0 0
82 - Customer Relations (1) 0 0 0 0 (1) (1) (1) 0 0
84 - Community & Economic Development (2,459) 1,050 0 (74) 0 (1,483) (1,488) (1,484) (0) 0
85 - Library Services (614) (9) 0 (24) 0 (647) (622) (634) 13 0
35 - Hills Community Care (7,049) 0 (73) 157 (5) (6,970) (6,817) (6,980) (11) 0
Total Recurrent Revenue (135,020) (771) (1,827) 348 (329) (137,598) (136,911) (138,187) 36 (624)
Externally/Internally Restricted Income (17,156) (785) 0 (44,172) (20) (62,133) (57,586) (62,132) 0 1 11d
Gain/Loss on Sales of Asset (3,866) 0 0 (554) 0 (4,420) (4,027) (4,420) 0 0
Revenue as Per Income Statement (156,041) (1,556) (1,827) (44,378) (349) (204,151) (198,524) (204,738) 36 (623)
Notes
* Comments on above references are detailed in Business Paper Report to this attachment.
Monthly Budget Review 2014/2015
ORDINARY MEETING OF COUNCIL 23 JUNE, 2015
ATTACHMENT 1
The Hills Shire Council
Monthly Budget Review 2014/2015
Statement of Expenditure By Program PAGE 3
Description Original Approved Changes Current YTD Actual Projected Recommended Changes Ref
Budget Quarter 1 Quarter 2 Quarter 3 Quarter 4 Budget Include Revised For Council Resolution *
2014/15 Review Review Review Review 2014/15 Commitments Budget Contra Var. Other Var.
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
EXPENDITURE - RECURRENT
10 - General Management 4,055 (388) (59) (319) (6) 3,282 2,913 3,283 1 0
12 - Internal Audit & Risk Management 540 37 40 70 (1) 686 541 686 0 0
13 - Executive Services 1,360 4 3 3 (2) 1,369 1,191 1,369 0 0
20 - Strategic Planning Group Support 371 6 0 (5) 0 371 337 371 0 0
21 - Financial Operations 7,632 488 (59) (108) (30) 7,923 7,105 7,925 2 0
22 - Infrastructure & Transport Planning 5,697 1,368 205 (415) 63 6,917 5,866 6,917 0 0
23 - Marketing & Communications 950 228 2 26 2 1,208 1,116 1,208 0 0
24 - Workforce Strategy & Business Improveme 1,750 146 24 194 (1) 2,113 1,841 2,106 (7) 0
25 - Forward Planning 4,002 317 7 (87) 3 4,242 3,380 4,242 0 0
26 - Community Planning & Special Infrastructu 2,300 (52) (181) (14) 0 2,053 1,755 2,061 8 0
31 - Legal Services 991 (376) 44 (11) 12 659 602 659 0 0
32 - Property Development & Management 2,236 420 332 318 (7) 3,299 2,728 3,299 0 0
34 - Children's Services 5,264 99 0 0 0 5,363 4,781 5,397 34 0
51 - Fire Control 3,502 36 0 (47) 0 3,491 3,387 3,489 (2) 0
53 - Infrastructure Projects 1,035 (40) 22 (28) 26 1,015 927 1,042 27 0
55 - Fleet Management 4,329 (109) 0 (43) 0 4,176 3,724 4,157 5 (24) 6
58 - Community Buildings 10,366 218 53 (302) 58 10,393 9,224 10,393 0 0
59 - Place Management 27,023 815 221 926 75 29,060 25,523 29,535 34 441 7
70 - Environment & Planning Group Support 512 (69) 0 (7) (1) 436 401 436 0 0
71 - Development Assessment Services 5,222 126 425 13 (3) 5,783 4,600 5,783 0 0
72 - Subdivision & Development Certification 3,113 25 160 (108) (1) 3,189 2,896 3,189 0 0
73 - Environmental Health Services 3,140 60 (2) 5 0 3,204 2,916 3,230 25 0
74 - Resource Recovery 25,400 425 200 0 0 26,025 23,073 26,133 108 0
75 - Regulatory Services 3,282 184 48 (43) 13 3,485 3,031 3,485 0 0
80 - Customer Services Group Support 492 (100) 0 (6) (1) 385 395 385 0 0
81 - Information Technology 5,111 18 55 19 0 5,203 5,120 5,205 2 0
82 - Customer Relations 3,044 287 0 (6) (3) 3,321 3,118 3,321 0 0
84 - Community & Economic Development 6,990 127 3 423 1 7,544 6,888 7,535 (9) 0
85 - Library Services 6,594 49 2 (15) 0 6,630 6,082 6,617 (13) 0
35 - Hills Community Care 8,982 181 85 (47) 6 9,206 8,048 9,416 210 0
Internal Recoveries (43,110) (38) (13) 176 0 (42,984) (39,389) (43,017) (33) 0
Total Recurrent Expenditure 112,174 4,490 1,619 561 202 119,046 104,120 119,856 393 417
ELE Adjustments 0 0 0 0 0 0 0 0 0 0
Depreciation 19,010 0 0 0 0 19,010 18,471 19,010 0 0
Expenditure as Per Income Statement 131,184 4,490 1,619 561 202 138,056 122,591 138,865 393 417
Notes
* Comments on above references are detailed in Business Paper Report to this attachment.
ORDINARY MEETING OF COUNCIL 23 JUNE, 2015
ATTACHMENT 1
The Hills Shire Council
Income Statement PAGE 4
Description Original Approved Changes Current YTD Actual Projected Recommended Changes Ref
Budget Quarter 1 Quarter 2 Quarter 3 Quarter 4 Budget Include Revised For Council Resolution *
2014/15 Review Review Review Review 2014/15 Commitments Budget Contra Var. Other Var.
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
RECURRENT Revenue
Rates & Annual Charges (93,775) 0 (511) (200) 0 (94,486) (94,405) (94,559) (73) 0
User Charges & Fees (16,011) (115) (922) 285 (142) (16,905) (16,017) (17,244) 51 (390) 4-5
Investment Revenues - Operational (4,818) 0 23 45 6 (4,745) (5,998) (4,750) (5) 0
Investment Revenues - Restricted/Capital 0 0 0 0 0 0 (2,963) 0 0 0
Other Revenues - Operational (3,766) (161) (8) (11) 0 (3,945) (3,290) (4,011) 78 (143) 1-2;
4-5
Other Revenues - Restricted/Capital 0 0 0 0 0 0 (118) 0 0 0
Grants & Contributions - Operational (16,649) (496) (408) 229 (192) (17,515) (17,201) (17,622) (16) (91) 3-4
Grants & Contributions - Restricted/Capital (17,156) (785) 0 (44,172) (20) (62,133) (54,505) (62,132) 0 1 11d
Profit From Disposal of Assets (3,866) 0 0 (554) 0 (4,420) (4,027) (4,420) 0 0
Total Revenue (156,041) (1,556) (1,827) (44,378) (349) (204,151) (198,524) (204,738) 36 (623)
Expenditure
Employment Costs 52,191 (146) 345 (344) 40 52,086 45,846 52,008 (54) (24) 6
Materials, Contracts & Plant Running Exp 27,643 1,920 265 879 103 30,809 27,639 31,368 118 441 7
Depreciation and Amortisation 19,010 0 0 0 0 19,010 18,471 19,010 0 0
Other Expenses 32,340 2,716 1,009 27 60 36,151 30,635 36,479 328 0
Total Expenditure 131,184 4,490 1,619 561 202 138,056 122,591 138,865 393 417
Operating Result (Surplus)/Deficit (24,858) 2,934 (209) (43,817) (146) (66,095) (75,933) (65,873) 429 (206) Add
Transfer to/(from) Reserves 22,793 (2,623) 12 2,258 1,437 23,878 23,878 24,121 (124) 367 8
Transfer from Prior Years Section 94 0 (35) 0 15 0 (20) 0 (20) 0 0
Transfer from Prior Years Grants 0 (1,107) 59 (882) (1,332) (3,263) (3,565) (3,727) (304) (161) 9
Sale of Fixed Assets 0 0 0 (2,097) 0 (2,097) (2,097) (2,097) 0 0
Sales of Other Assets 0 0 0 0 0 0 0 0 0 0
Less
Depreciation & Amortisation (19,010) 0 0 0 0 (19,010) (18,471) (19,010) 0 0
ELE Adjustment 0 0 0 0 0 0 0 0 0 0
Investment Revenues - Restricted/Capital 0 0 0 0 0 0 2,963 0 0 0
Other Revenues - Restricted/Capital 0 0 0 0 0 0 118 0 0 0
Grants & Contributions - Restricted/Capital 17,156 785 0 44,172 20 62,133 54,505 62,132 0 (1) 11d
Profit/Loss From Disposal of Assets 3,866 0 0 554 0 4,420 4,027 4,420 0 0
Net Budget Result (Surplus)/Deficit (52) (46) (138) 204 (22) (54) (14,576) (54) 0 (1)
Notes
* Comments on above references are detailed in Business Paper Report to this attachment.
Monthly Budget Review 2014/2015
ORDINARY MEETING OF COUNCIL 23 JUNE, 2015
ATTACHMENT 1
The Hills Shire Council
Monthly Budget Review 2014/2015
Cash & Investments Page 5
Description Original Current YTD Projected Ref
Budget Quarter 1 Quarter 2 Quarter 3 Quarter 4 Budget Actual Revised *
2014/15 Review Review Review Review 2014/15 Budget Contra Var. Other Var.
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Externally Restricted
Section 94 42,208 (16,077) 0 44,736 (3,188) 67,680 107,024 67,707 27 0
Grants & Contributions 6,576 (2,463) 59 (932) (1,332) 1,907 4,844 1,475 (304) (127) 9,11c
Domestic Waste 5,041 0 0 0 0 5,041 5,041 5,041 0 0
Internally Restricted
Reserves 120,200 (10,735) 641 729 4,589 115,424 132,568 115,678 (85) 339 8,10-12
Unrestricted
Trust Fund 11,077 0 0 0 0 11,077 14,773 11,077 0 0
Unrestricted Cash 10,774 46 138 (750) 22 10,230 32,725 10,230 0 1 #
Total Cash & Investments 195,876 (29,229) 838 43,784 90 211,359 296,975 211,209 (362) 212
Note :
* Comments on above references are detailed in Business Paper Report to this attachment.
# Proposed Budget Surplus for the period
Amounts shown as Unrestricted Cash shown in YTD Actual column is based income received to date and does not have all planned expenditure expended as at this reporting date.
However the Revised Budget Unrestricted Cash column shown assumes that all budgeted income has been received and all budgeted expenditure has been expended.
INSERT Investment Rates & Investments by Instituitions graphs here
Approved Changes Recommended Changes
For Council Resolution
ORDINARY MEETING OF COUNCIL 23 JUNE, 2015
ATTACHMENT 1