Cr Ros Heit - Finance Portfolio Report - 18 April 2018
Finance Third Quarter Budget Review The principal focus of this briefing is based around the third quarter review of the 2017/2018 financial year operating and capital budgets. The following 10 year
Finance
Third Quarter Budget Review
The principal focus of this briefing is based around the third quarter review of the 2017/2018 financial year operating and capital budgets.
The following 10 year projections have been provided for Councillors to review as part of our agenda today:
- Income Statements,
- Statement of Financial Position,
- Cash Flow and,
- Key Ratios.
The table below shows the projected changes compared to the original budget and the previous two quarterly reviews:
|
|
Original |
1st Qtr |
2nd Qtr |
3rd Qtr |
Restricted Cash |
Operating Result |
|---|---|---|---|---|---|---|
|
General Operations |
$(250,433) |
(148,463) |
(21,380) |
(3,453,766) |
3,521,516 |
67,750 |
|
Plant & Fleet |
$48,140 |
(60,881) |
107,629 |
107,629 |
- |
107,629 |
|
Water |
$88,723 |
88,723 |
163,793 |
163,793 |
- |
163,793 |
|
Waste Water |
$513,466 |
513,466 |
477,976 |
477,976 |
- |
477.976 |
|
Waste |
$177,769 |
168,769 |
245,805 |
204,799 |
- |
204,799 |
|
Flood Restoration |
- |
- |
167,341 |
167,341 |
- |
167,341 |
|
|
$577,665 |
561,614 |
1,141,164 |
(2,332,228) |
3,521,516 |
1,189,288 |
Of interest to Council will be the progressive improvement in the projected operating surplus to this quarter.
Also, can I point out that the first half of the Federal Assistance Grant for this financial year was received late in the 2016/17 financial year. As a result the Grants and Subsidies, Contributions and Donations Income Statement line item has been reduced in this financial year to reflect this actual result. The payment received last Financial Year was held in restricted cash at 30 June 2017 and has now been released to Working Capital.
All indicators are within the desired range including the Operating Surplus Ratio if the advance payment of the Federal Assistance Grant is taken into account.
Capital Budget.
A review was also undertaken as at March with the main change being a reinstatement of $2,862,700 from restricted cash for the Waste Water Program.
This funding is for ongoing network renewals. The network renewal program is expected to be delivered early in 2018/2019 financial year using funding from this financial year, 2017/18 and 2018/19. This approach provides purchasing and economies of scale benefits as a larger program of works.
Other changes in the Capital budget includes $120,500 for the BP Recreational Exercise Track which is funded from Qld Government Sport and Rec and Taabinga Rotary. In addition $124,550 was included for the completion of the Anzac Rotunda refurbishment in Memorial Park.
Works for Queensland
At reporting date, $1.834m had been spent on the Round 2 Projects. The expenditure report provided for the information in today’s agenda details this expenditure.