Cr Ros Heit - Finance Portfolio Report - 16 May 2018

Financial Report

Just a brief report for Council today given our current focus on the preparation of the budget for the financial year ending 30 June 2019.

Except for the Operating Ratio the indicators of financial health (the financial ratios) are within the required parameters.  The Operating Ratio is only slightly outside of the target limit. However, given that Council is aware that this ratio is influenced by the issue of half yearly rating there is no risk relating to this result.

The line items within the Statement of Comprehensive Income are also performing to expectation given the percentage of the year completed to date.  Line items performing slightly outside of the 83% have been reported to Council in previous months.

Capital Expenditure

The capital expenditure report which has been included in the agenda for Council’s information shows that 57.7% of the budget of $35.774m has been utilised when committed costs are included.  Council is aware that several projects in the Property, Waste Water Programs and the W4Q projects for round two, will be either held over to be completed in the 2019 Financial Year or completed by the project milestone date in the case of W4Q projects.  Those other projects include the Nanango Office Refurbishment in Property and the Network Renewal Program in Waste Water.

If those numbers are taken into account the utilisation of the Capital Budget at 30 April would be at 67% with two months of expenditure and project delivery yet to be incurred.    

Budget for the financial year ending 30 June 2019

The major focus of the finance team and Council over this past month has been the preparation of the 2019 financial year budget.  Council has been working through the finances to develop next year’s budget to ensure the optimal balance between costs and benefits of Council Services.  At a Strategic Budget Meeting on Monday 14 May 2018 or last Monday Council considered the Operational Budget for General Operations, Water, Waste Water, Waste and Plant and Fleet.  Two further workshops will be held before the end of May to complete this budget preparation cycle.  

Works for Queensland

At reporting date, $1.654m has been spent on the Round 2 Projects with a further $348,516 committed to be spent making the total committed expenditure of $2.003m at reporting date.  That expenditure is better detailed in the report for Councillors information which is part of the agenda today.