2014 Maroondah Logo RGB.jpg

 

Ordinary Meeting of Council

 

Attachments

 

 

 

Monday 15 February 2016

 

 

 

Council Chamber, Braeside Avenue, Ringwood

 

 


ATTACHMENTS

 

 

Director Corporate Services

3.       Councillor Representation Reports

Attachment 1: ..... Minutes - Maroondah Partners In Community Wellbeing Committee Meeting - 30 November 2015.............................................................................. 3

4.       Local Law No 12 - Meetings Procedure and Use of Common Seal

Attachment 1: ..... Proposed Local Law No 12 - Tracked Changes................................ 6

Attachment 2: ..... Community Impact Statement........................................................ 43

5.       Financial Report: Six Months Ending 31 December 2015

Attachment 1: ..... 15 February 2016 - Council Meeting Report - Financial report appendix 6 months 31 December 2015............................................................................ 58

7.       Election Period Policy (Caretaker)

Attachment 1: ..... Election Period Policy (Caretaker).................................................. 96

 

Director Operations, Infrastructure & Leisure

6.       Draft Community Facilities Dedication Policy

Attachment 1: ..... Draft Community Facilities Dedication Policy .............................. 116

 

Director CITY DEVELOPMENT

1.       Local Government Performance Reporting Framework - Quarter 2 Results 2015/16

Attachment 1: ..... LGPRF Service Performance Indicators - Quarter 2 Report............ 120

         


ATTACHMENT No: 1 - Minutes - Maroondah Partners In Community Wellbeing Committee Meeting - 30 November 2015

 

Item  3

 



ATTACHMENT No: 1 - Proposed Local Law No 12 - Tracked Changes

 

Item  4

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


ATTACHMENT No: 2 - Community Impact Statement

 

Item  4

 


 


 


 


 


 


 


 


ATTACHMENT No: 2 - Community Impact Statement

 

Item  4

 


ATTACHMENT No: 1 - 15 February 2016 - Council Meeting Report - Financial report appendix 6 months 31 December 2015

 

Item  5

 

 

 

 

FINANCIAL REPORT

Six months ended

31 December 2015

 

 

 

 

 

 

 

 

 

 

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ATTACHMENT No: 1 - 15 February 2016 - Council Meeting Report - Financial report appendix 6 months 31 December 2015

 

Item  5

 

 

 

Contents

 

 

 

1     EXECUTIVE SUMMARY.. 3

2.    FINANCIAL ANALYSIS.. 6

2.1      OPERATING PERFORMANCE.. 6

2.1.1       Operating Income. 6

2.1.2        Operating Expenses. 8

2.1.3       Directorate Analysis. 11

2.2       CAPITAL PERFORMANCE.. 12

2.3       FINANCIAL POSITION.. 15

2.4       CASH AND INVESTMENTS.. 18

APPENDIX A.. 21

Income Statement 22

Reconciliation of Difference between Adopted Budget and Annual Forecast 24

Balance Sheet 25

Cash Flow Statement 26

Statement of Capital Works. 27

APPENDIX B.. 28

Managers’ Comments on Operating Statement Variances. 28

APPENDIX C.. 35

Manager’s Comments on Capital Variances. 35

 

 

 

 

 


ATTACHMENT No: 1 - 15 February 2016 - Council Meeting Report - Financial report appendix 6 months 31 December 2015

 

Item  5

 

1     EXECUTIVE SUMMARY

 

1.1    OPERATING PERFORMANCE

 

Forecast

YTD

YTD

YTD

Adopted

 

Budget

Budget

Actual

 Var

Budget

 

$’000

$’000

$’000

$’000

$’000

Operating

Income

116,035

97,343

97,716

373

117,792

Expenses

(117,923)

(58,620)

(56,679)

1,941

(117,600)

Underlying Surplus (Deficit)

(1,888)

38,723

41,037

2,314

192

Capital

Grants - Capital (recurrent and non-recurrent)

8,937

2,249

2,095

(155)

3,859

Comprehensive result

7,049

40,973

43,132

2,159

4,051

 

 

For the six months ended 31 December 2015 Council has recorded an operating surplus before capital revenue of $41.04 million, which is $2.31 million ahead of the year to date budget (This equates to a 1.99% variance on total budgeted turnover). The major contributing variances are: (See also notes to Income Statement Appendix B)

·    The change from the Adopted Budget Underlying Surplus of $192k to the Forecast Budget Underlying Deficit of ($1.89m), which is a direct result of the Victorian Grants Commission payment of $2.5m being paid in advance in the previous financial year and carried forward grant expenditure.

 

·    Cash Contributions are $233k above budget due to $176k more Public Open Space contributions than anticipated.

 

·    Statutory Fees and Fines are $175k above budget due to improved Traffic and Parking Management $80k and an increased number of Statutory Planning Applications of $36k.

 

·    Capital grants (recurrent and non-recurrent) are ($155k) below budget due to $100k in grants relating to the East Ringwood Pavillion Multicultural Infrastructure Fund.

 

·    Rates and charges are ($47k) below budget with Supplementary Rates ($64k) below expectations.

 

·    User Fees are ($37k) below budget with fees for Aquahub ($61k), Ringwood Golf ($55k) and Dorset Golf ($39k) all below budget. Revenue Services (Valuations) $42k and Sport and Recreation $41k were both ahead of budget.

 

 

·    Materials & Services are $867k below year to date forecast. Service areas contributing to this are Human Resources $220k (Insurances $69k, Training $61k, Advertising $24k and Conferences & Seminars $17k), Leisure $148k (Training $35k, Cleaning 32k, Marketing & Promotions $32k and Communications $24k), Integrated Planning $112k (Consultancies $50k and Program Expenditure $46k) Business Development $81k (Electricity $49k and Rates Special Charges $38K) and Information Technology $80k (Software Maintenance $76k). Legal Fees ($110k) and Water ($75k) are both above forecast.

 

·    Contractors are $850k below year to date forecast. Service areas contributing to this are Community Services $361k (including Home Care $144k, Respite Care $109k, Personal Care $78k and Property Maintenance $51k), Waste Management $242k, Operations $144k (including City Parks $94k and Construction $46k), Human Resources $59k (Learning & Development $44k) and Leisure $58k (Ringwood Golf $21k and Aquahub $21k) which are all below forecast.

 

·    Employee costs are $224k below budget with Community Services contributing $93k, Operations $91k, Planning, Health and Local Laws $68k, Maroondah Leisure Marketing and Sale $65k and Revenue, Property and Customer Services $64k. Aquahub ($148k) and Aquanation ($116k) were unfavourable to budget.

 

The movement between the Capital Grants Adopted Budget of $3.86 million and Forecast of $8.94 million mainly relates to:

·    Realm $3 million

·    Capital grant income for Oban Road Blackspots of $701k

·    Capital projects for which grant income was budgeted 14/15 but had not been received at year end, resulting in forecast variations for 15/16. This includes projects such as Mullum Reserve, Marveloo, Bedford Road Signalisation, RMAC and East Ringwood CCTV, Croydon Main St Connects and the Ringwood Station Art Project.

 

The movement between the net surplus Adopted Budget of $4.05 million and the Forecast of $7.05 million mainly relates to the following (Refer to detailed reconciliation in Appendix A):

·    Carried forward grants net ($678k);

·    New and revised grant funding net ($2.94m);

·    New and revised capital grant funding $5.21m;

·    Revised forecast Public Open Space contributions $800k;

·    Revised forecast Developer’s Contributions ($100k).

1.2    CAPITAL PERFORMANCE

 

Forecast

YTD

YTD

YTD

Adopted

Budget ##

 Budget

Actual #

 Var

Budget

$’000

$’000

$’000

$’000

$’000

Total capital works

44,187

14,051

13,532

518

37,077

 #YTD Actual expenditure includes Carried Forwards                ##Forecast Budget expenditure includes Carried Forwards

 

The Forecast Budget includes carried forward works from 2014/15 of $3.3m and funding for new and revised projects including:

·        State government funding from the Department of Transport, Planning & Local Infrastructure for the signalisation of Bedford Road and Great Ryrie Street of $1 million;

·        Federal government funding from the Attorney-General’s Department for the installation of CCTV cameras in the Ringwood Metropolitan Activity Centre and East Ringwood of $400k;

·        State government funding from the Department of Health and Human Services for the construction of Marveloo 2 $44k;

and future years projects brought into current year including the replacement of existing community buildings at Proclamation Park $500k and Street Lighting Improvements $300k.

 

 

For the six months ended 31 December 2015 Council has expended $13.53 million on the capital works program, which is $518k behind the year to date budget. The variance is due to mainly:

·    Recreational Leisure and Community Facilities behind by $331k;

·    Buildings behind by $258k;

·    Computers and Telecommunications behind by $106k;

·    Footpaths and Cycleways ahead by 77k;

·    Drainage ahead by $48k; and

·    Plant, Machinery and Equipment ahead by $36k.

 

1.3    FINANCIAL POSITION

 

 

2015-16

2014-15

2014-15

 

Adopted

December YTD

December YTD

 June YTD

 

Budget

Actual

Actual

Actual

 

$’000

$’000

$’000

$’000

Cash and investments

23,160

30,780

34,056

39,920

Net current assets

5,953

62,540

64,933

23,556

Net asset and total equity

1,347,362

1,454,525

1,373,419

1,411,393

 

The Financial Position as at 31 December 2015 shows cash and investments balances of $30.78 million, which is $3.28 million lower than balances at 31 December 2014. The cash and investments balance is $11.63 million above the 2015/16 LTFS predicted cash amount of $19.15 million. The net asset position as at 31 December 2015 is $1.45 billion.

2.    FINANCIAL ANALYSIS

 

2.1         OPERATING PERFORMANCE

 

2.1.1      Operating Income

 

 

Forecast

YTD

YTD

YTD

Adopted

Budget

 Budget

Actual

 Var

Budget

$’000

$’000

$’000

$’000

$’000

Income

Rates & charges*

77,294

77,170

77,123

(47)

77,264

Statutory fees & fines

3,594

1,679

1,854

175

3,538

User fees

21,712

10,553

10,516

(37)

21,671

Contributions - cash

3,488

2,835

3,068

233

2,782

Grants - Operating (recurrent)

8,958

4,482

4,494

12

11,783

Grants - Operating (non-recurrent)

149

104

106

3

6

Interest received

933

506

537

30

841

Net gain (loss) on disposal of property, infrastructure, plant & equipment

(93)

14

18

4

(93)

Total Income

116,035

97,343

97,716

373

117,792

Grants - Capital (recurrent and non-recurrent)

8,937

2,249

2,095

(155)

3,859

Total Operating Income

124,972

99,592

99,811

218

121,651

 

* Rates received are in line with expectations and in accordance with the same trend as last year – see graph on page 16.

 

Income YTD Budget variances (depiction of the table above)

 


ATTACHMENT No: 1 - 15 February 2016 - Council Meeting Report - Financial report appendix 6 months 31 December 2015

 

Item  5

 

 

Major Operating Income Variances

 

 

 

YTD Budget for selected items

YTD Fav Budget

YTD Unfav Budget

Var

$’000

$’000

$’000

Rates and Charges

 

                77,170

 

                      47

Supplementary Rates

T

                      406

 

                      64

Statutory Fees and Fines

 

                   1,679

                      175

 

Traffic Fines

T

                      463

                        80

 

Planning Application Fees

T

                      237

                        36

 

User Fees

 

                10,553

 

                      37

Aquahub

T

                   2,691

 

                      61

Ringwood Golf

T

                      846

 

                      55

Dorset Golf

T

                      626

 

                      39

Revenue Services - Valuations

P

                        96

                        42

 

Sport and Recreation

T

                      219

                        41

 

Contributions - Cash

 

                   2,835

                      233

 

Public Open Space

P

                   2,253

                      176

 

Grants - Capital (recurrent and non-recurrent)

 

                   2,249

 

                    155

East Ringwood Pavillion - Multicultural Infrastructure Fund

T

 

 

                    100

 

Note: Var T = Timing P = Permanent CF = Carried forward prior year

Fav Favourable against budget, Unfav – Unfavourable against budget

 

As the major unfavourable variances are purely related to timing there is no cause for concern by Council.

For more detailed explanations refer to the notes of the Income Statement in Appendix B which lists all major variances under/over $30k by Service Area.


ATTACHMENT No: 1 - 15 February 2016 - Council Meeting Report - Financial report appendix 6 months 31 December 2015

 

Item  5

 

2.1.2       Operating Expenses

 

 

Forecast

YTD

YTD

YTD

Adopted

Budget

 Budget

Actual

 Var

Budget

$’000

$’000

$’000

$’000

$’000

Expenses

Employee costs

49,127

24,176

23,952

224

48,815

Materials and services

25,249

13,179

12,313

867

25,300

Contractors

22,869

10,927

10,077

850

22,827

Depreciation and amortisation

19,530

9,763

9,757

6

19,509

Finance costs

1,149

574

580

(6)

1,149

Total operating expenses

117,923

58,620

56,679

1,941

117,600

 

 

The movement between the operating expenses Adopted Budget of $117.60 million and the Forecast of $117.92 million mainly relates to the following (Refer to detailed reconciliation in Appendix A):

·        The change in Employee Costs from the Adopted Budget $48.82 million to the Forecast Budget of $49.13 million relates to a reallocation of Materials and Services and Contractors to Employee costs for Aquanation ($334k) and Aged & Disability Services ($114k).

·        Carried forward unexpended grants from the previous financial period of $678k;

·        New grant funding of $48k for Victorian Environmental Partnerships Program and $12k for the Central Kindergarten Enrolment Project.

 

Expenses YTD Budget variances (depiction of the table above)

 

 

The majority of these are all favourable variances and there are no causes for concern to Council.


ATTACHMENT No: 1 - 15 February 2016 - Council Meeting Report - Financial report appendix 6 months 31 December 2015

 

Item  5

 

 

Major Operating Expense Variances

 

 

 

YTD Budget for selected items

YTD Fav Budget

YTD Unfav Budget

Var

$’000

$’000

$’000

Employee Costs

 

                24,176

                      224

 

Community Services

T

                   3,461

                        93

 

Operations

T

                   3,305

                        91

 

Planning, Health and Local Laws

T

                   2,985

                        68

 

Maroondah Leisure Marketing and Sales

T

                      468

                        65

 

Revenue, Property and Customer Services

T

                      959

                        64

 

Aquahub

T

                   1,610

 

                    148

Aquanation

T

                   1,851

 

                    116

Materials and Services

 

                13,179

                      867

 

Human Resources

T

                   1,052

                      220

 

Leisure

T

                   3,540

                      148

 

Integrated Planning

T

                      361

                      112

 

Business and Development

T/P

                      365

                        81

 

Information Technology

T

                   1,091

                        80

 

Operations

T

                   2,229

                        74

 

Community Services

T

                      682

                        71

 

Finance and Governance

T

                      408

                        54

 

Communications and Marketing

T

                      293

                        38

 

Revenue, Property and Customer Services

T

                   1,748

                        33

 

Legal Fees

P

                      189

 

                    110

Water

T

                      293

 

                      75

Planning, Health and Local Laws

T

                      508

 

                      46

Contractors

 

                10,927

                      850

 

Community Services

T

                   2,040

                      361

 

Waste Management

T

                   5,045

                      242

 

Operations

T

                   2,939

                      144

 

Human Resources

T

                      150

                        59

 

Leisure

T

                      389

                        58

 

Business and Development

T

                        74

 

                      33

 

 

Note: Var T = Timing P = Permanent CF = Carried forward prior year Fav Favourable against budget, Unfav – Unfavourable against budget

 

The variances relate to both timing and permanent differences. Legal fees are expected to remain above forecast.

 

For more detailed explanations refer to the notes of the Income Statement in Appendix B which lists all major variances under/over $30k by Service Area.

 


 

2.1.3      Directorate Analysis

 

 

Annual forecast Net

YTD forecast budget Net

YTD Actual Net

YTD Bud Var Net

$’000

$’000

$’000

$’000

Department

Chief Executive's Office

(2,121)

(984)

(928)

56

Corporate Services

(25,248)

(12,540)

(11,795)

745

Operations, Infrastructure & Leisure

(22,655)

(11,514)

(11,186)

328

Planning & Community

(11,202)

(4,213)

(3,060)

1,153

(61,226)

(29,250)

(26,968)

2,281

Capital Grants & Contributions

8,937

2,249

2,095

(155)

Net (Gain)/Loss on disposal of equipment

(93)

14

18

4

Other non-attributable 1

59,432

67,960

67,987

28

Net (surplus) deficit

7,049

40,973

43,132

2,159

 

1.   Other non-attributable includes rate & charges revenue, grants commission, depreciation and insurance.

 

 

 

Department net cost YTD Budget variances (depiction of the table above)

 

 

This graph shows that all directorates are showing a positive variance to the Year to Date Budget.

 


ATTACHMENT No: 1 - 15 February 2016 - Council Meeting Report - Financial report appendix 6 months 31 December 2015

 

Item  5

 

2.2          CAPITAL PERFORMANCE

 

 

Amount

Forecast

YTD

YTD

YTD

Adopted

Carried Forward

Budget ##

Budget

Actual #

Bud Var

Budget

$’000

$’000

$’000

$’000

$’000

$’000

Classification

Buildings

(148)

20,566

6,168

5,910

258

17,628

Roads

1,102

6,216

2,131

2,128

4

3,584

Footpaths and Cycleways

136

1,830

817

894

(77)

1,840

Carparks

0

494

88

88

0

330

Drainage

373

2,552

933

981

(48)

2,180

Waste Management

43

133

43

34

8

90

Other Capital Roads and Drainage

295

960

135

150

(15)

715

Recreational Leisure and Community Facilities

230

3,371

1,085

754

331

2,941

Parks and Open Space

263

1,345

415

411

4

932

Fixtures, Fittings and Furniture

14

98

29

18

10

60

Plant, Machinery and Equipment

182

3,237

867

903

(36)

3,332

Computers and Telecommunications

656

1,546

532

427

106

890

Property Sales

0

0

0

24

(24)

0

Building Renewal

130

1,839

808

810

(3)

2,555

Total capital works

3,276

44,187

14,051

13,532

518

37,077

 #YTD Actual expenditure includes Carried Forwards             ##Forecast Budget expenditure includes Carried Forwards, future years’ projects brought into this year.

 

Capital works YTD Budget variances by asset class (depiction of the table above)

 


 

Capital works YTD expenditure cumulative

#YTD Actual expenditure includes Carried Forwards              ##Forecast Budget expenditure includes Carried Forwards, future years’ projects brought into this year.

 

These graphs demonstrate that expenditure and hence, the capital program is slightly behind of budget predictions overall.

For more detailed explanations on capital items refer to Appendix C which lists all major variances under/over $30k by Service Area.

 


ATTACHMENT No: 1 - 15 February 2016 - Council Meeting Report - Financial report appendix 6 months 31 December 2015

 

Item  5

 

Major Capital Works Variances

 

 

 

YTD Budget for selected items

YTD Ahead of Budget

YTD Behind Budget

Var

$’000

$’000

$’000

Buildings

 

                   6,168

 

                    258

Proclamation Park Building Replacement

T

                      400

 

                    343

Street Lighting Improvements

T

                      300

 

                      59

East Ringwood Pavillion

T

                      100

 

                      50

Realm

T

                          -  

                      230

 

Mullum Reserve Pavillion Extension

T

                   1,151

                      107

 

Footpaths and Cycleways

 

                      817

                        77

 

Disability Footpath Access

T

                        53

                        65

 

Drainage

 

                      933

                        48

 

Power St Flood Mitigation Works

T

                      100

                        34

 

Recreational Leisure and Community Facilities

 

                   1,085

 

                    331

Dorset Golf - Desilting of Dam

T

                      115

 

                    109

Reserves - Sports Field Surface Renovation

T

                      100

 

                    100

Ringwood Golf - Irrigation

T

                        45

 

                      41

Dorset Golf - Perimeter Fencing

T

                        50

 

                      36

 

Note: Var T = Timing  P = Permanent  CF = Carried forward prior year  E = Externally funded

 

For more detailed explanations on capital items refer to Appendix C which lists all major variances under/over $30k by Service Area. On the whole, the results indicate Council is well placed to deliver on most of the projects included within the 2015/16 Capital Budget as well as those projects carried forward into the 2015/16 year.

 


 

2.3          FINANCIAL POSITION

 

 

 

2015-16

2014-15

 

Adopted

December YTD

December YTD

 

Budget

Actual

Actual

 

$’000

$’000

$’000

Cash and investments

23,160

30,780

34,056

Net current assets

5,953

62,540

64,933

Net asset and total equity

1,347,362

1,454,525

1,373,419

 

The Financial Position as at 31 December 2015 shows cash and investments balances of $30.78 million, which is $3.28 million lower than balances at 31 December 2014. The cash and investments balance is $11.63 million above the 2015/16 LTFS predicted cash amount of $19.15 million. The net asset position as at 31 December 2015 is $1.45 billion.

 

Actual cash & investments balance by month

 

This graph reflects that there are sufficient cash reserves to cover both restricted assets and any fluctuations in cash flow.

 

 

 

 

 

 

 

Actual working capital ratio by month

(Current Assets / Current Liabilities)

 

 

The working capital ratio is a measure of liquidity. It is essential for this figure to be greater than 1.00 at all times, with the VAGO recommended level being in excess of 1.50.

 

The ratio is decreasing as expected, and is expected to fall towards 1.24 by 30 June 2016.

 

 

 

Actual rates outstanding balances by month

The December result indicates a similar quantum of rates outstanding as compared to the same stage last year. 

 

Rates debtor collection rate by %

The level of collection of rate debtors during 2015/16 is in line with expectations.

 


ATTACHMENT No: 1 - 15 February 2016 - Council Meeting Report - Financial report appendix 6 months 31 December 2015

 

Item  5

 

2.4          CASH AND INVESTMENTS

 

The following graphs indicate the diversification and credit ratings of the investment portfolio at the end of December. The table lists all the investments held as at 31 December 2015. The investments were made in accordance with Council’s Investment Policy and all criteria specified in the Policy have been met.

Min % under policy = 50%

 

Max % under policy = 50%

 

 

These graphs indicate that the spread of investments both by credit rating and by institution meet the requirements of the Investment Policy.


ATTACHMENT No: 1 - 15 February 2016 - Council Meeting Report - Financial report appendix 6 months 31 December 2015

 

Item  5

 

 

Investments as at 31 December 2015

 

Credit Rating

Maturity Date

Period Days

Yield %

Type

$000's

%

Bank West

A-1+

1.95

On-Call

                       4,880

16.4%

National Australia Bank

A-1+

2.05

On-Call

                           738

2.5%

IMB

A-2

04-Jan-16

95

2.75

Term Dep.

                       1,600

5.4%

IMB

A-2

13-Jan-16

106

2.75

Term Dep.

                           914

3.1%

Suncorp Metway

A-1

21-Jan-16

92

2.80

Term Dep.

                           700

2.3%

Rural Bank Ltd

A-2

28-Jan-16

65

2.50

Term Dep.

                       1,500

5.0%

Rural Bank Ltd

A-2

10-Feb-16

120

2.80

Term Dep.

                       1,000

3.4%

IMB

A-2

16-Feb-16

62

2.55

Term Dep.

                           604

2.0%

Suncorp Metway

A-1

16-Feb-16

77

2.70

Term Dep.

                       1,000

3.4%

Bank of Queensland

A-2

18-Feb-16

91

2.85

Term Dep.

                       1,762

5.9%

Rural Bank Ltd

A-2

24-Feb-16

96

2.70

Term Dep.

                           500

1.7%

Commonwealth

A-1+

10-Mar-16

99

2.85

Term Dep.

                       1,507

5.1%

Bank of Queensland

A-2

17-Mar-16

90

2.85

Term Dep.

                       1,200

4.0%

Bank of Melbourne

A-1+

23-Mar-16

91

2.81

Term Dep.

                       1,470

4.9%

National Australia Bank

A-1+

23-Mar-16

90

3.00

Term Dep.

                           705

2.4%

Commonwealth

A-1+

24-Mar-16

119

2.90

Term Dep.

                       1,534

5.1%

Suncorp Metway

A-1

21-Apr-16

142

2.95

Term Dep.

                       1,000

3.4%

Bank of Queensland

A-2

21-Apr-16

120

2.90

Term Dep.

                       1,440

4.8%

Commonwealth

A-1+

27-Jan-16

92

2.80

Term Dep.

                       1,068

3.6%

ING

A-2

13-May-16

182

2.90

Term Dep.

                           694

2.3%

Bendigo & Adelaide Bank LTD

A-2

30-May-16

181

2.80

NCD

                       1,031

3.5%

Bendigo & Adelaide Bank LTD

A-2

06-Jun-16

180

2.80

Term Dep.

                       1,193

4.0%

Bendigo & Adelaide Bank LTD

A-2

25-Jul-16

368

2.95

Term Dep.

                           702

2.4%

Bank of Melbourne

AA-

13-Mar-18

1461

4.25

Term Dep.

                       1,057

3.5%

                     29,797

100%

Term Dep. = Term Deposit NCD = Negotiable Certificate of Deposit

 

 

 

 

Council’s performance against the industry wide benchmark (Bank Bill Swap Reference Rate – Average Bid which summarises the returns on banks bills over the time period chosen) is provided below:

 

Benchmark: 90 day Bank Bill Swap Reference Rate – Average Bid  (Source: Australian Financial Markets Association)

2.49%

Maroondah Investment Portfolio as at 31 December 2015 

This represents a favourable return on investments

2.87%

 


ATTACHMENT No: 1 - 15 February 2016 - Council Meeting Report - Financial report appendix 6 months 31 December 2015

 

Item  5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

APPENDIX A

 

Income Statement

Reconciliation Adopted Budget to Forecast

Balance Sheet

Cash Flow Statement

Statement of Capital Works

 


 

Income Statement

 

For the six months ending 31 December 2015

 

YTD

YTD

YTD

Annual

Forecast

Actual

Forecast

Adopted

Forecast

Budget

Variance

Budget

$'000

$'000

$'000

$'000

Note

$'000

Income

Rates & charges     

77,294

77,170

77,123

(47)

1

77,264

Statutory fees & fines

3,594

1,679

1,854

175

2

3,538

User fees

21,712

10,553

10,516

(37)

21,671

Contributions - cash

3,488

2,835

3,068

233

3

2,782

Grants - Operating (recurrent)

8,958

4,482

4,494

12

11,783

Grants - Operating (non-recurrent)

149

104

106

3

6

Interest received

933

506

537

30

841

Net gain (loss) on disposal of property, infrastructure, plant & equipment

(93)

14

18

4

(93)

Total Income

116,035

97,343

97,716

373

117,792

Expenses

Employee costs

49,127

24,176

23,952

224

4

48,815

Materials and services

25,249

13,179

12,313

867

5

25,300

Contractors

22,869

10,927

10,077

850

6

22,827

Depreciation and amortisation

19,530

9,763

9,757

6

19,509

Finance costs

1,149

574

580

 (6)

1,149

Total expenses

117,923

58,620

56,679

1,941

117,600

Underlying Surplus (Deficit)

(1,888)

38,723

41,037

2,314

192

Grants - Capital (recurrent and non-recurrent)

8,937

2,249

2,095

(155)

7

3,859

Comprehensive result

7,049

40,973

43,132

2,159

4,051


ATTACHMENT No: 1 - 15 February 2016 - Council Meeting Report - Financial report appendix 6 months 31 December 2015

 

Item  5

 

CLASSIFICATION STATEMENT (SUMMARY OF VARIANCES)

Income Statement for the Period Ended 31 December 2015

Items in brackets () indicate unfavourable variance

NOTE 1

Rates & Charges are $47k below year to date forecast. Rates Supplementary are $64k below forecast, refer to variance comments below. Rates Garbage Charges are $23k above forecast.

NOTE 2

Statutory Fees and Fines are $175k above year to date forecast. Traffic Fines $80k, Statutory Planning Applications $36k and Community Health Registration Fees $21k are all above forecast.

NOTE 3

Contributions Cash are $233k above year to date forecast. Open Space Cash in Lieu Contributions are $176k above forecast and School Focussed Youth Services Contributions are $28k above forecast.

NOTE 4

Employee costs are $224k below year to date forecast. Service areas contributing to this are Community Services $93k, Operations $91k, Planning, Health & Local Laws $68k, Maroondah Leisure Marketing & Sales $65k, Revenue, Property & Customer Service $64k all below forecast. Aquahub $148k and Aquanation $116k are above forecast.

NOTE 5

Materials & Services are $867k below year to date forecast. Service areas contributing to this are Human Resources $220k (Insurances $69k, Training $61k, Advertising $24k and Conferences & Seminars $17k), Leisure $148k (Training $35k, Cleaning 32k, Marketing & Promotions $32k and Communications $24k), Integrated Planning $112k (Consultancies $50k and Program Expenditure $46k) Business Development $81k (Electricity $49k and Rates Special Charges $38K) and Information Technology $80k (Software Maintenance $76k). Legal Fees ($110k) and Water ($75k) are both above forecast.

NOTE 6

Contractors are $850k below year to date forecast. Service areas contributing to this are Community Services $361k (including Home Care $144k, Respite Care $109k, Personal Care $78k and Property Maintenance $51k), Waste Management $242k, Operations $144k (including City Parks $94k and Construction $46k), Human Resources $59k (Learning & Development $44k) and Leisure $58k (Ringwood Golf $21k and Aquahub $21k) which are all below forecast.

 

NOTE 7

Capital Grants are $155k below year to date forecast. East Ringwood Pavilion $100k is below forecast.

 

Reconciliation of Difference between Adopted Budget and Annual Forecast

OPERATING - RECONCILIATION OF DIFFERENCE BETWEEN ADOPTED BUDGET AND ANNUAL FORECAST

6 months 1 July 2015 to 31 December 2015

 

Revenue

Expenditure

Movement

$

$

$

Budget

117,791,588

117,599,742

191,846

Capital Grants & Contributions

3,859,000

0

3,859,000

Adopted Budget

121,650,588

117,599,742

4,050,846

Carried Forward Operating Grants & Contributions

7,871

686,149

(678,278)

New Funding Operating Grants & Contributions

129,592

113,046

16,546

Revised Funding Operating Grants & Contributions

(2,936,178)

0

(2,936,178)

Carried Forward Capital Grants & Contributions

3,068

0

3,068

New Funding Capital Grants & Contributions

3,727,500

0

3,727,500

Revised Funding Capital Grants & Contributions

1,347,467

0

1,347,467

Other Capital

7,540

0

7,540

Transfers from Operation to Capital

0

(208,000)

208,000

Assets

1,000

(125,096)

126,096

Business & Development

0

19,600

(19,600)

Community Services

42,079

(101,502)

143,581

Communications & Marketing

0

(24,500)

24,500

Engineering & Building Services

21,000

1,422

19,578

Finance & Governance

209,917

(119,000)

328,917

Human Resources

0

(26,000)

26,000

Integrated Planning

68,107

67,607

500

Leisure - Management

0

155,579

(155,579)

Leisure - Sport & Recreation

68,000

50,150

17,850

Leisure - Community Halls

(16,299)

42,422

(58,721)

Leisure - Karralyka

(74,334)

(213,741)

139,407

Leisure - Federation Estate

0

42,091

(42,091)

Leisure - Aquahub

0

(42,416)

42,416

Leisure - Aquanation

0

(25,305)

25,305

Leisure - Maroondah Leisure Marketing & Sales

0

(35,800)

35,800

Leisure - Croydon Memorial Pool

0

(4,238)

4,238

Leisure - The Rings

(2,811)

(11,170)

8,359

Leisure - Dorset Golf

0

(9,087)

9,087

Leisure - Ringwood Golf

0

(11,511)

11,511

Operations

0

64,217

(64,217)

Planning, Health & Local Laws

700,000

33,621

666,379

Revenue, Property & Customer Service

18,000

4,746

13,254

Annual Forecast

124,972,107

117,923,026

7,049,081

Total Forecast Changes

3,321,519

323,284

2,998,235


ATTACHMENT No: 1 - 15 February 2016 - Council Meeting Report - Financial report appendix 6 months 31 December 2015

 

Item  5

 

Balance Sheet

 

As at 31 December 2015

31/12/2015

31/12/2014

30/06/2015

$ '000

$ '000

$ '000

Assets

Current assets

Cash and cash equivalents

11,609

20,131

9,301

Trade and other receivables

56,229

53,786

7,311

Other financial assets

19,170

13,925

30,619

Inventories

347

327

271

Other assets

1,173

604

658

Total current assets

88,530

88,773

48,160

Non-current assets

Trade and other receivables

695

995

695

Investments in associates and joint ventures

2,706

2,517

2,706

Property, infrastructure, plant and equipment

1,397,812

1,315,427

1,394,260

Intangible assets

13,922

14,186

13,923

Total non-current assets

1,415,135

1,333,125

1,411,584

Total assets

1,503,665

1,421,898

1,459,744

Liabilities

Current liabilities

Trade and other payables

(11,765)

(9,845)

(9,832)

Trust funds and deposits

(2,354)

(2,990)

(3,408)

Provisions

(10,692)

(9,982)

(10,212)

Interest-bearing loans and borrowings

(1,180)

(1,023)

(1,152)

Total current liabilities

(25,990)

(23,840)

(24,604)

Non-current liabilities

Provisions

(911)

(997)

(911)

Interest-bearing loans and borrowings

(21,896)

(23,177)

(22,493)

Trust funds and deposits

(343)

(465)

(343)

Total non-current liabilities

(23,150)

(24,639)

(23,747)

Total liabilities

(49,140)

(48,479)

(48,351)

Net assets

1,454,525

1,373,419

1,411,393

Equity

Accumulated surplus

457,354

433,707

440,751

Surplus (deficit) for period

43,132

43,444

16,603

Reserves

954,039

896,268

954,039

Total equity

1,454,525

1,373,419

1,411,393


 

Cash Flow Statement

 

For the six months ended 31 December 2015

31/12/2015

31/12/2014

Cash flows from operating activities

 $'000

 $'000

Rates and charges

24,852

28,472

Statutory fees and fines

1,854

1,667

User fees

13,704

6,643

Grants - operating

4,600

6,026

Grants - capital

2,095

3,799

Contributions - monetary

3,068

1,938

Interest received

701

621

Trust funds and deposits taken

2,602

-

Net GST refund

-

-

Employee costs

(25,672)

(22,211)

Materials and services

(18,848)

(22,078)

Trust funds and deposits repaid

(3,531)

-

Net cash provided by/(used in) operating activities

5,425

4,878

Cash flows from investing activities

Payments for property, infrastructure, plant and equipment

(13,576)

(26,101)

Proceeds from sales of property, infrastructure, plant and equipment

272

747

Payments for investments

(18,493)

(3,005)

Proceeds from sales of investments

29,942

-

Net cash provided by/(used in) investing activities

(1,855)

(28,359)

Cash flows from financing activities

Finance costs

(580)

-

Proceeds from borrowings

-

24,200

Repayment of borrowings

(569)

-

Net cash provided by/(used in) financing activities

(1,149)

24,200

Net increase (decrease) in cash and cash equivalents

2,420

719

Cash and cash equivalents at the beginning of the period

9,189

19,412

Cash and cash equivalents at the end of the financial period

11,609

20,131


 

Statement of Capital Works

 

For the six months ending 31 December 2015

 

 

Forecast

YTD

YTD

YTD

Adopted

Budget ##

Forecast Budget

Actual #

Bud Var

Budget

$’000

$’000

$’000

$’000

$’000

Buildings

         20,566

                  6,168

            5,910

           258

            17,628

Roads

            6,216

                  2,131

               2,128

               4

              3,584

Footpaths and Cycleways

            1,830

                  817

               894

                (77)

              1,840

Carparks

               494

                    88

                88

                 0

                 330

Drainage

            2,552

                  933

               981

                (48)

              2,180

Waste Management

               133

                      43

                34

               8

                  90

Other Capital Roads and Drainage

               960

                    135

150

                 (15)

                 715

Recreational Leisure and Community Facilities

            3,371

                  1,085

               754

               331

              2,941

Parks and Open Space

            1,345

                    415

411

                4

                 932

Fixtures, Furniture and Fittings

                98

                      29

                  18

                  10

                  60

Plant, Machinery and Equipment

            3,237

                    867

               903

              (36)

              3,332

Computers and Telecommunication

            1,546

                  532

               427

               106

                 890

Property Sales

                 0 

                    0  

                  24

                 (24)

                   0  

Building Renewal

            1,839

                  808

               810

              (3)

              2,555

Total capital works

44,187

14,051

13,532

518

37,077

 

 

# YTD Actual expenditure includes Carried Forwards

## Forecast Budget expenditure includes Carried Forwards

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

APPENDIX B

 

Managers’ Comments on Operating Statement Variances

 

 

 

 


ATTACHMENT No: 1 - 15 February 2016 - Council Meeting Report - Financial report appendix 6 months 31 December 2015

 

Item  5

 

 

VARIANCES – OPERATING

Comments (for variances = or > $30,000)

Manager Level

I/E

$ Variance

Account Description

Reason for Year To Date Variance

Action Required To Correct Variance

Business & Development

E

38,037

BS Main St Croydon – Special Rates & Charges

Payment now authorized.

Received audited statement of accounts from Croydon Main Street Traders Association.

E

49,288

Realm - Electricity

Move into Realm later than anticipated. Electricity paid by Probuild up until 29 October 2015.

Forecast variation to be considered.

Integrated Planning

E

35,264

STR Review of Housing Strategy – Consultancies

Timing error.

Forecast variation to be processed.

Planning, Health & Local Laws

 

I

176,200

Open Space – Contributions

Increased value of contributions.

No action required.

I

80,110

Traffic – Fines

Substantial increase in activity in Ringwood is the main factor for this increase.

Forecast variation will be considered early in the new year.

36,247

Immunisation Nurses - Salaries

Salaries not deducted from the right account - currently being drawn from account below (non EFT). We think this has occurred when we moved the nurse on to electronic rosters

Salary allocation to be reviewed in January 2016.

 

E

(32,829)

Immunisation Nurses – Salaries NON EFT

Nurse salaries drawn from the wrong account, should have come from the account above (EFT). This evens out the discrepancy in account variances.

Salary allocation to be reviewed in January 2016.

 

I

35,817

Stat Planning – Fee Planning Application

 

No action required.

E

57,106

Stat Planning – Salaries

This figure will normalize as all vacant positions are filled and a 6 month temporary planner role has been appointed to assist with work back log.

No action required.

E

(67,671)

Stat Planning – Legal Fees

Increased number of complex and controversial decisions requiring solicitors to defend Council's position.

Will remain over budget for the period.

Revenue, Property & Customer Service

E

67,227

Customer Services General – Salaries

EFT Vacancies not yet replaced. A Customer Service workforce planning review is being undertaken. This will somewhat offset with Non EFT Salaries.

The Ringwood Centre in Civic Place closed in October 2015 and REALM has opened. Existing vacancies will be reviewed and where necessary recruitment commenced.

E

(32,729)

Customer Services General – Salaries NON EFT

Existing staff backfilling vacancies (Paid at additional hours) required to maintain service levels during a period of workforce change and adjustment in 14/15.

Existing Customer Service vacancies will be reviewed and where necessary recruitment commenced shifting expenditure to EFT salaries rather than NON EFT Salaries.

I

(66,606)

Revenue – Rate Supplementary

Fewer supplementary valuations processed than originally forecast.

 

Budget spread adjustment required. Still to be reviewed as Eastland demolition supplementary has not been processed.

E

30,414

Revenue – Salaries

2 vacancies due to a 3 day secondment and a vacancy due to move to Property Advisor role.

3 month temporary backfill prior to recruitment to fill vacancy underway.

I

44,228

Revaluations – Fee

Region 4 of Stage 2 and Stage 3A yet to be certified by Valuer General's office. Will be paid upon certification.

No action required.

Finance & Governance

E

33,400

Domestic Garbage Collection – Contractors

Hard waste bookings for January have continued to be high, but it is anticipated that a forecast variation for $40k can be made due to the new contract at a lower cost.

Forecast variation of $40k will be done in January 2016.

E

42,782

Hard Waste On-Call – Contractors

This is due to a slowing of hard waste bookings in winter, our quietest period and the new contract being more cost competitive then the previous hard waste collector.

Forecast variation of $40k will be done in January 2016.

Human Resources

E

58,978

HR Training – Training Group Programs

$6.5k still to be processed through Computron for training programs/ individual training.

RADAR learning needs are currently being collated. Bookings to be made in December, January and February.

Mental health awareness sessions are booked, to be paid in February/March.

No action required.

Operations

E

33,000

CONS Table Drains – Contractors

Delay in programmed works due to inclement weather.

No action required.

E

(46,389)

CP Sportsground – Agency Staff

Agency staff employed due to work cover absence.

No action required.

 

E

45,094

CP Irrigation Maintenance - Salaries

Corresponding over expenditure in agency to cove work cover absence.

No action required.

Leisure

I

(62,500)

Aquahub – Gross Income

$23k drop in revenue for December is due to incorrect budget phasing.

Net position is $140k unfavourable.

Currently looking at forecast to see if budgeted income reflects current allocations in the system. Variation will be processed once the figures have been completed.

E

(77,424)

Aquahub – Gross Expenditure

Approximately $40k of CMP expense has been wrongly allocated to Aquahub.

Net position is $140k unfavourable.

Currently working through each line item to ensure all Riteq codes are correct in the system for future months. Variation will be processed once the figures have been completed.

E

39,563

Croydon Memorial Pool – Gross Expenditure

As above CMP has not been allocated the correct expense.

Net position is $47k favourable.

Refer above.

I

(55,482)

Ringwood Golf – Gross Income

Casual green fees and membership income are both down. A total of 12 days over 30 degrees has not been favourable to maximize patronage. Kiosk revenue is also down due to the popularity of the Mister Fox Cafe.

Net position is $1k favourable.

Continue to explore opportunities to increase utilization of the golf course.

E

56,047

Ringwood Golf – Gross Expenditure

Savings have been made in the area of labour and Maroondah Leisure overheads.

 

Net position is $1k favourable.

No action required.

I

(38,954)

Dorset Golf – Gross Income

 

Attendance and therefore income is down in most categories. Kiosk secondary sales are also down due to lower than expected attendance.

Net position is $23k favourable.

Continue to explore opportunities to increase utilization of the golf course.

E

56,877

Dorset Golf – Gross Expenditure

Savings have been achieved across labour and kiosk accounts (due to lower attendance) which have contributed towards the net favourable position.

Net position is $23k favourable.

Forecast journal to be processed.

Community Services

E

48,875

Arts Development - Salaries

New part time positions for Realm/RMAC arts programming not yet filled. Exhibitions Programs Officer position currently being recruited. Arts Activation Co-ordinator is still awaiting approval by CMT. Anticipated that this position will now be recruited in February.

No action required.

Most of the functions of these roles in the period to December 2015 were fulfilled through contractor arrangements.

A mixture of further contractor arrangements as well as extensions to current positions in Arts and Cultural Development will be used until the positions are filled.

Revisions to forecasts and spreads for Arts Development Salaries and also for Contractors have been made as part of the mid-year review.

 

E

(58,847)

SFYS – Flexible Funding

Forecasts are off due to inaccurate forecast spreads (i.e. should have been planned to have no expenditure past December). Still tracking under budget based on original service agreement and for whole of financial year.

Still waiting on new service agreement from DET to determine revised figure for new funding term (Jan 2016 - Dec 2017). Funding is confirmed so may be best to process forecast variation based on previous service agreement and revise later.

E

143,970

HACC Home Care – Contractors

A number of factors have contributed to under spending in this area, increased contract payment amount commenced in November, additional funds allowed for potential increase in contractor costs (during contract negotiations). Longer term services in this area are being brought back to DHHS funding levels, gradually reducing Council contribution to direct care with impending move to "My Aged Care". Funds to be redistributed to continue Council support for aged, disabled & vulnerable residents.

Forecast review has been completed with new rate and targets applied and reform changes, further forecast variation and reallocation to occur.

E

78,530

HACC – HACC Personal Care Contractors

Personal Care target under spent, sitting at 90% of target.

Building Personal Care Service, expected expenditure will increase to budgeted levels.

E

108,771

HACC Respite Care – Contractors

New Calvary fee rate not fully applied - Slightly under HACC target YTD.

Building Respite Care Services, Slightly under HACC target. Target to be monitored during further months.

E

51,179

HACC Property Maintenance – Contractors

Property Maintenance is under spent but approaching peak Christmas period.

Building Property Maintenance Services, target to be monitored during further months.


ATTACHMENT No: 1 - 15 February 2016 - Council Meeting Report - Financial report appendix 6 months 31 December 2015

 

Item  5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

APPENDIX C

 

Manager’s Comments on Capital Variances

 

 

 

 

 

 


ATTACHMENT No: 1 - 15 February 2016 - Council Meeting Report - Financial report appendix 6 months 31 December 2015

 

Item  5

 

 

VARIANCES – CAPITAL

Comments (for variances = or > $30,000)

Manager Level

E

$ Variance

Account Description

Reason for Year To Date Variance

Action Required To Correct Variance

Integrated Planning

E

58,243

Street Lighting Improvements

Waiting on invoice.

No action required.

Assets

I

(100,000)

East Ringwood Pavilion

Variance is due to some delays associated with the project, and the subsequent receipt of funding from the Multicultural Affairs Infrastructure Fund.

Forecast variation required.

E

50,037

East Ringwood Pavilion

Variance is due to some delays associated with the finalization of the detailed design and construction specification. The invoices for this work are expected over the next couple of weeks. 

Forecast variation required.

E

(107,239)

Mullum Reserve Pavilion Extension

Variance is due to an increase in the scope of works, as a result of some unforeseen issues that were encountered early in the project.

Forecast variation required.

E

342,765

Proclamation Park Replace Buildings

The Ringwood Athletics Pavilion project was delayed in the early design stages, due to the requirements of SRV. The tenders for the construction of the new facility are currently being assessed, and construction will commence in January 2016.

Forecast variation required.

Engineering & Building Services

 

E

(64,916)

Disability Footpath Access

At the request of Councillors, we are delivering 3 years worth of Disability Footpath Access program over the next 18-24 months.  As agreed with CWIG / Finance we will overspend this year’s allocated funding and rectify at EOFY.

 

No action required at this stage - over spend will be rectified at EOFY in consultation with Finance.

E

(33,887)

Power Street Flood Mitigation Works

Works are due to be completed this month.  As agreed with CWIG / Finance we will overspend this year’s allocated funding to complete this stage of the project, with additional funds to be brought forward from 2016/17 allocation.

No action required at this stage - the over spend will be rectified next month in consultation with Finance at CWIG.

Business & Development

E

(229,613)

Realm

MCC Quantity surveyor review of QIC invoice for progress payment required prior to payment.

Receipt of updated progress payment from QIC required to initiate review and payment approval.

Leisure

E

100,000

Reserves – Sports Field Surface Renovation

Contract in progress. Delay in invoice this month.

No action required.

E

36,202

DG Perimeter Fencing

Preferred contractor has a back log of works, the works will be completed in the coming months.

Forecast variation required.

E

108,900

DG Distilling of Dam

Works still on track to be complete this summer, some further investigations into the works methodology has been carried out to ensure the project runs smoothly.

Forecast variation required.

E

41,333

RG Irrigation

These works are dependent on the desilting works and will be carried out once desilting is complete.

Forecast variation required.


ATTACHMENT No: 1 - Election Period Policy (Caretaker)

 

Item  7

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 

 


ATTACHMENT No: 1 - Draft Community Facilities Dedication Policy

 

Item  6

 


 


 


 

 


ATTACHMENT No: 1 - LGPRF Service Performance Indicators - Quarter 2 Report

 

Item  1