Streamlining Certification Work in Some Former Council Areas
Section 94 Original
24. Real Estate Asset Purchases – $22.8m
Purchase of Investment Properties as per Council Resolution dated 14/06/16 proposed to be funded from Land Development and Open Space Acquisition Reserve.
Reserve Funds (Internal Restrictions)
Reserve funds as at 30 June 2015 amounted to $153.1m. Balance projected after May Budget Review will total $97.2m.
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.
ORDINARY MEETING OF COUNCIL 28 JUNE, 2016
IMPACTS Financial
The proposed variations listed above will result in a Recurrent Budget Surplus of $17k.
The proposed variations listed above will result in a Total Works Program Budget of
$115.5m.
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 6 to 10 and the variations detailed in page 11-30 be adopted.
ATTACHMENTS
Page 1-5 Financial Summaries Page 6–10 Budget Review Statements
Page 11–30 Capital Works Expenditure and Comments on Variations Page 31 Key Performance Indicators
Page 32 Listing of Contracts & Other Expenses
ORDINARY MEETING OF COUNCIL 28 JUNE 2016
ATTACHMENT 1
The Hills Shire Council
PAGE 1
FY14/15 FY15/16 FY15/16 Description FY14/15 FY15/16 % Actual/
Actual Current Revised YTD Total Revised
July-June Budget Budget Actual YTD Budget
$'000 $'000 $'000 $'000 $'000
RECURRENT OPERATIONS
(139,892) (146,692) (145,493) Income (136,911) (144,268) 99%
110,373 122,620 121,496 Expenditure 100,024 108,600 89%
(29,519) (24,073) (23,997) Budget (Surplus)/Deficit (36,887) (35,668)
28,969 26,047 25,986 Transfer to/(from) Reserves 21,781 26,097 100%
(20) (30) (30) Transfer from Prior Years Section 94 0 0 0%
(2,964) (1,976) (1,976) Transfer from Prior Years Income (3,565) (1,975) 100%
(3,534) (32) (17) Budget Result (Surplus)/Deficit (18,672) (11,546)
CAPITAL PURCHASES
3,022 4,649 4,649 Capital Purchases 2,580 3,360 72%
(1,846) (3,516) (3,516) Transfer to/ (from) Plant Reserve (3,042) (3,516) 100%
(1,177) (1,133) (1,133) Sale of Plant Assets (975) (1,127) 99%
2,097 0 0 Transfer to Reserves 2,097 0 0%
(2,097) 0 0 Sale of Fixed Assets (2,097) 0 0%
0 (0) (0) Net Capital Purchases (1,436) (1,284)
CAPITAL WORKS
30,671 82,163 77,110 New & Renewal 24,585 38,605 50%
6,250 33,987 33,990 Land Acquisition 6,118 19,954 59%
3,795 4,354 4,354 Project Development & Delivery 3,548 3,495 80%
40,717 120,505 115,453 Total Expenditure 34,251 62,054 54%
(1,664) (4,930) (5,230) Grants and Contributions 0 0 0%
(25,053) (40,858) (35,836) Transfer to/(from) Reserves (31,386) (40,858) >100%
(12,628) (74,541) (74,230) Transfer from Prior Years Section 94 0 0 0%
(1,373) (175) (157) Transfer from Prior Years Income 0 0 0%
(40,717) (120,505) (115,453) Total Funding (31,386) (40,858) 35%
(0) 0 0 Net Capital Expenditure 2,865 21,195
SECTION 94
(60,752) (117,452) (117,452) Opening Balance (Surplus)/Deficit (60,752) (117,452)
(66,248) (66,887) (66,887) Income (51,285) (68,057) >100%
(3,099) (3,546) (3,546) Interest Received/(Paid) (2,801) (3,800) >100%
12,647 74,572 74,260 Expenditure 10,637 31,924 43%
(56,700) 4,139 3,827 Movement for the year (43,450) (39,933)
(117,452) (113,313) (113,625) Section 94 Balance (Surplus)/Deficit (104,202) (157,385)
REAL ESTATE ASSETS
12,481 5,354 5,354Assets at Book Value 1 July 2015 12,481 5,354
416 21,221 43,981 Development Costs 414 18,439 42%
(416) (21,221) (43,981) Transfer from Reserves (414) (18,439) 42%
10,521 (8,800) (8,800) Sales (10,521) 0 0%
(10,521) 8,800 8,800 Transfer to Reserves 10,521 0 0%
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 12 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 $1.2bn.
If all planned expenditure and income materialises in this financial year, it is anticipated that Section 94 funds will amount to $ 113.6m as at 30 June 2016.
ORDINARY MEETING OF COUNCIL 28 JUNE 2016
ATTACHMENT 1
The Hills Shire Council
Statement of Income By Program PAGE 2
FY14/15 FY15/16 FY15/16 Description FY14/15 FY15/16 % Actual/
Actual Current Revised YTD Total Revised
July-June Budget Budget Actual YTD Budget
$'000 $'000 $'000 $'000 $'000
REVENUE - RECURRENT
(68,739) (71,439) (70,047) 10 - General Management (68,819) (71,389) >100%
(90) (188) (188) 12 - Internal Audit & Risk Management (90) (188) 100%
(4) (5) (6) 13 - Executive Services (3) (6) 96%
(12,909) (11,667) (12,016) 21 - Financial Operations (12,359) (11,597) 97%
(2,734) (2,624) (2,687) 22 - Infrastructure & Transport Planning (1,856) (1,850) 69%
(36) (10) (10) 24 - Workforce Strategy & Business Improvement (38) (10) 100%
(897) (1,127) (1,129) 25 - Forward Planning (823) (1,222) >100%
(60) (53) (60) 26 - Community Planning & Special Infrastructure Project (60) (49) 82%
(208) (180) (188) 31 - Legal Services (204) (186) 99%
(1,642) (3,314) (3,338) 32 - Property Development & Management (1,510) (3,044) 91%
(5,387) (5,690) (5,473) 34 - Children's Services (5,004) (5,235) 96%
(561) (506) (506) 51 - Fire Control (498) (495) 98%
(1) 0 0 53 - Infrastructure Projects (1) (0) 0%
(447) (452) (452) 55 - Fleet Management (384) (395) 87%
(2,592) (2,308) (2,629) 59 - Place Management (2,497) (2,480) 94%
(2,710) (2,601) (2,601) 71 - Development Assessment Services (2,434) (2,397) 92%
(3,557) (4,552) (4,752) 72 - Subdivision & Development Certification (3,247) (4,423) 93%
(545) (469) (469) 73 - Environmental Health Services (512) (462) 99%
(24,671) (25,746) (25,206) 74 - Resource Recovery (24,611) (25,740) >100%
(1,097) (1,444) (1,444) 75 - Regulatory Services (912) (1,265) 88%
(2) (2) (4) 81 - Information Technology (2) (3) 86%
(1) (1) (1) 82 - Customer Relations (1) (0) 19%
(3,831) (4,388) (4,364) 84 - Community & Economic Development (3,607) (4,270) 98%
(622) (637) (632) 85 - Library Services (622) (637) >100%
(6,552) (7,290) (7,293) 35 - Hills Community Care (6,817) (6,924) 95%
(139,892) (146,692) (145,493) Total Recurrent Revenue (136,911) (144,268) 99%
(235,071) (71,817) (72,117) Externally/Internally Restricted Income (57,586) (77,877) >100%
(4,312) (7,617) (7,617) Gain/Loss on Sales of Asset (4,090) (706) 9%
(379,275) (226,126) (225,227) Revenue as Per Income Statement (198,587) (222,851) 99%
Notes
* Comments on above references are detailed in Business Paper Report to this attachment.
Actual vs Previous Years Data
ORDINARY MEETING OF COUNCIL 28 JUNE 2016
ATTACHMENT 1
The Hills Shire Council
Actual vs Previous Years Data
Statement of Expenditure By Program PAGE 3
FY14/15 FY15/16 FY15/16 Description FY14/15 FY15/16 % Actual/
Actual Current Revised YTD Total Revised
July-June Budget Budget Actual YTD Budget
$'000 $'000 $'000 $'000 $'000
EXPENDITURE - RECURRENT
3,129 3,115 2,971 10 - General Management 2,904 2,577 87%
571 702 590 12 - Internal Audit & Risk Management 539 529 90%
1,301 1,406 1,431 13 - Executive Services 1,169 1,195 84%
365 397 397 20 - Strategic Planning Group Support 335 347 87%
7,562 7,788 7,721 21 - Financial Operations 7,087 6,971 90%
5,990 7,867 7,837 22 - Infrastructure & Transport Planning 5,275 6,253 80%
1,196 1,188 1,198 23 - Marketing & Communications 1,050 1,092 91%
1,876 1,898 1,895 24 - Workforce Strategy & Business Improvement 1,722 1,769 93%
3,685 3,919 3,728 25 - Forward Planning 3,379 3,249 87%
1,903 1,762 1,762 26 - Community Planning & Special Infrastructure Project 1,737 1,411 80%
632 502 506 31 - Legal Services 586 440 87%
2,740 3,917 3,917 32 - Property Development & Management 2,449 3,004 77%
5,226 5,795 5,608 34 - Children's Services 4,750 5,073 90%
3,400 3,855 3,855 51 - Fire Control 3,317 3,603 93%
1,056 1,206 1,206 53 - Infrastructure Projects 924 1,063 88%
4,030 4,532 4,548 55 - Fleet Management 3,630 4,344 96%
5,401 6,347 6,320 58 - Community Buildings 4,420 5,831 92%
27,603 30,138 30,754 59 - Place Management 24,441 27,711 90%
434 425 425 70 - Environment & Planning Group Support 400 378 89%
4,885 5,789 5,350 71 - Development Assessment Services 4,488 4,740 89%
3,143 3,409 3,409 72 - Subdivision & Development Certification 2,872 3,143 92%
3,142 3,139 3,120 73 - Environmental Health Services 2,818 2,743 88%
24,810 27,067 26,527 74 - Resource Recovery 22,990 24,729 93%
3,205 3,145 3,185 75 - Regulatory Services 2,959 2,908 91%
425 389 389 80 - Customer Services Group Support 395 332 85%
5,189 5,487 5,487 81 - Information Technology 4,913 5,378 98%
3,333 3,436 3,436 82 - Customer Relations 3,103 3,135 91%
11,911 12,378 12,380 84 - Community & Economic Development 10,942 11,121 90%
6,568 6,652 6,579 85 - Library Services 6,023 5,984 91%
8,884 9,106 9,108 35 - Hills Community Care 7,795 7,863 86%
(43,223) (44,137) (44,141) Internal Recoveries (39,389) (40,318) 91%
110,373 122,620 121,496 Total Recurrent Expenditure 100,024 108,600 89%
0 0 0 ELE Adjustments 0 0 0%
20,233 13,749 13,749 Depreciation 18,471 11,971 87%
130,606 136,369 135,245 Expenditure as Per Income Statement 118,495 120,571 89%
ORDINARY MEETING OF COUNCIL 28 JUNE 2016
ATTACHMENT 1
The Hills Shire Council
Income Statement PAGE 4
FY14/15 FY15/16 FY15/16 Description FY14/15 FY15/16 % Actual/
Actual Current Revised YTD Total Revised
July-June Budget Budget Actual YTD Budget
$'000 $'000 $'000 $'000 $'000
RECURRENT Revenue
(94,327) (97,614) (95,648) Rates & Annual Charges (94,405) (97,566) >100%
(17,710) (21,244) (21,283) User Charges & Fees (16,124) (19,982) 94%
(6,496) (5,359) (5,790) Investment Revenues - Operational (5,998) (5,281) 91%
(3,376) 0 0 Investment Revenues - Restricted/Capital (2,963) (3,958) >100%
(4,021) (4,648) (4,778) Other Revenues - Operational (3,184) (4,394) 92%
(125,993) 0 0 Other Revenues - Restricted/Capital (118) (1,713) >100%
(17,338) (17,827) (17,995) Grants & Contributions - Operational (17,201) (17,045) 95%
(105,701) (71,817) (72,117) Grants & Contributions - Restricted/Capital (54,505) (72,207) 100%
(4,312) (7,617) (7,617) Profit From Disposal of Assets (4,090) (706) 9%
(379,275) (226,126) (225,227) Total Revenue (198,587) (222,851) 99%
Expenditure
49,585 52,708 52,087 Employment Costs 45,752 46,859 90%
29,221 31,284 31,870 Materials, Contracts & Plant Running Exp 25,332 29,233 92%
20,233 13,749 13,749 Depreciation and Amortisation 18,471 11,971 87%
31,566 38,627 37,540 Other Expenses 28,940 32,508 87%
130,606 136,369 135,245 Total Expenditure 118,495 120,571 89%
(248,669) (89,757) (89,981) Operating Result (Surplus)/Deficit (80,092) (102,280) Add
31,066 26,047 25,986 Transfer to/(from) Reserves 23,878 26,097 100%
(20) (30) (30) Transfer from Prior Years Section 94 0 0 0%
(2,964) (1,976) (1,976) Transfer from Prior Years Grants (3,565) (1,975) 100%
0 0 0 Sales of Real Estate Assets 0 0 0%
0 0 0 Sale of Fixed Assets 0 0 0%
(2,097) 0 0 Sales of Other Assets (2,097) 0 0%
Less
(20,233) (13,749) (13,749) Depreciation & Amortisation (18,471) (11,971) 87%
0 0 0 ELE Adjustment 0 0 0%
3,376 0 0 Investment Revenues - Restricted/Capital 2,963 3,958 >100%
125,993 0 0 Other Revenues - Restricted/Capital 118 1,713 >100%
105,701 71,817 72,117 Grants & Contributions - Restricted/Capital 54,505 72,207 100%
4,312 7,617 7,617 Profit/Loss From Disposal of Assets 4,090 706 9%
(3,534) (32) (17) Net Budget Result (Surplus)/Deficit (18,672) (11,546)
Actual vs Previous Year Data
ORDINARY MEETING OF COUNCIL 28 JUNE 2016
ATTACHMENT 1