Annual Report 2014–15


Note 2: Budget comparison



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Note 2: Budget comparison

The budget comparison notes compare Council’s financial plan, expressed through its annual budget, with actual performance. The Local Government (Planning and Reporting) Regulations 2014 requires explanation of any material variances. Council has adopted a materiality threshold of the lower of 5 per cent or $1 million where further explanation is warranted. Explanations have not been provided for variations below the materiality threshold unless the variance is considered to be material because of its nature.

The budget figures detailed below are those adopted by Council on 30 June 2014. The Budget was based on assumptions that were relevant at the time of adoption of the Budget. Council sets guidelines and parameters for revenue and expense targets in this budget in order to meet Council’s planning and financial performance targets for both the short and long-term. The budget did not reflect any changes to equity resulting from asset revaluations, as their impacts were not considered predictable.

These notes are prepared to meet the requirements of the Local Government Act 1989 and the Local Government (Planning and Reporting) Regulations 2014.

The budget information provided only relates to the Council. No consolidated budget prepared.


  1. Income and Expenditure


    Council

    Budget

    2015


    $’000

    Actual

    2015


    $’000

    Variance

    2015


    $'000

    %

    Ref

    Income

    N/A

    N/A

    N/A

    N/A

    N/A

    Rates and charges

    230,116

    231,184

    1,068

    0%

    1

    Statutory fees and fines

    0

    0

    0

    0

    N/A

    Parking fines

    40,711

    42,316

    1,605

    4%

    2

    Other statutory fees and fines

    7,527

    7,960

    433

    6%

    3

    User fees

    0

    0

    0


    0

    N/A

    Parking fees

    46,376

    49,269

    2,893

    6%

    4

    Other user fees

    15,493

    15,477

    (16)

    0%

    N/A

    Grants - operating

    8,299

    10,489

    2,190

    26%

    5

    Grants - capital

    17,446

    19,516

    2,070

    12%

    6

    Contributions - monetary

    3,586

    15,497

    11,911


    332%

    7

    Contributions - non monetary

    0

    11,562

    11,562

    100%

    8

    Net gain on disposal of property, infrastructure, plant and equipment

    146

    1,381

    1,235

    846%

    9

    Fair value adjustments for investment properties

    0

    364

    364

    100%

    10

    Other income

    29,308

    30,762

    1,454

    5%

    11

    Total Income

    399,008

    435,777


    36,769

    9%

    N/A

    Expenses

    N/A

    N/A

    N/A

    N/A

    N/A

    Employee benefit expense

    133,686

    132,798

    888

    1%

    N/A

    Materials and services

    158,832

    160,621

    (1,789)

    -1%

    12

    Bad and doubtful debts

    6,859

    6,630

    229

    3%

    N/A

    Depreciation and amortisation

    57,323

    57,685

    (362)

    -1%


    N/A

    Other expenses

    5,229

    4,669

    560

    11%

    13

    Grants and contributions

    12,476

    13,217

    (741)

    -6%

    14

    Total Expenses

    374,405

    375,620

    (1,215)

    0%

    N/A

    Surplus for the year

    24,603

    60,157

    35,554

    145%

    N/A

    Other Comprehensive Income

    N/A

    N/A

    N/A


    N/A

    N/A

    Net asset revaluation increment

    0

    61,519

    61,519

    100%

    15

    Total Other Comprehensive Income

    0

    61,519

    61,519

    100%

    N/A

    Total Comprehensive Result

    24,603

    121,676

    97,073

    395%

    N/A
    1. Explanation of material variations


      Ref.

      Item

      Explanation

      1

      Rates and charges

      Due to higher than expected supplementary rate income.


      2

      Parking fines

      Due to higher parking infringements being issued.

      3

      Other statutory fees and fines

      Due to higher planning fees ($0.29 million) and building fines ($0.12 million).

      4

      Parking fees

      Due to higher construction zone parking meter fees and towing vehicles fees.

      5

      Grants - operating

      Due to 2015-16 Victorian Grants Commission grants receipt earlier than expected and Creative Victoria grants for management of Meat Market.

      `6

      Grants - capital

      Due to 2015-16 Victorian Grants Commission grants ($0.84 million) receipt earlier than expected, higher grants for Royal and Princes Parks Recreation Infrastructure Improvement ($0.94 million) and Kathleen Syme Library and Community Centre redevelopment ($0.28 million).

      7

      Contributions - monetary

      Due to higher public open spaces contributions ($12.11 million).

      8

      Contributions - non monetary

      Due to external asset contributions on infrastructure ($9.81 million) and land under roads ($1.75 million).


      9

      Net gain on asset disposal

      Due to gain on sale of land of 2 Riverside Quay and lane of rear of Collins Street.

      10

      Fair value adjustments for investment properties

      Due to gain ($0.36 million) on investment asset valuation.

      11

      Other income

      Due mainly to grants-in-kind revenue ($1.15 million) which is fully offset by grants-in-kind expenditure.

      12

      Materials and services

      Mainly due to higher than expected contractor costs as a result of additional service requirements and costs.

      13

      Other expenses

      Due to lower Fire Service Levy expenditure ($0.56 million).

      14

      Grants and contributions

      Due to grants-in-kind expenditure ($1.15 million) which is fully offset by grants-in-kind revenue.

      15

      Net asset revaluation increment

      Due to gain on fixed asset valuation including $56.63 million on roads & lanes.

  2. Capital Works

    Council


    Budget

    2015


    $'000

    Actual

    2015


    $'000

    Variance

    2015


    $'000

    %

    Ref

    Property

    N/A

    N/A

    N/A

    N/A

    N/A

    Land

    0

    4

    (4)

    0%

    N/A

    Total Land

    0

    4

    (4)

    0%

    N/A

    Buildings

    N/A

    N/A

    N/A

    N/A

    N/A

    Buildings

    17,273

    10,818

    6,455

    37%

    1


    Heritage buildings

    8,873

    8,549

    324

    4%

    N/A

    Total Buildings

    26,146

    19,367

    6,779

    26%

    N/A

    Total Property

    26,146

    19,371

    6,775

    26%

    N/A

    Plant & Equipment

    N/A

    N/A

    N/A

    N/A

    N/A

    Plant, machinery and equipment

    2,911

    1,865

    1,046

    36%

    2

    Fixtures, fittings and furniture


    135

    41

    94

    70%

    N/A

    Computers and telecommunications

    9,244

    7,170

    2,074

    22%

    3

    Library books

    919

    915

    4

    0%

    N/A

    Total Plant & Equipment

    13,209

    9,991

    3,218

    24%

    N/A

    Infrastructure

    N/A

    N/A

    N/A

    N/A

    N/A

    Roads

    14,926

    13,110

    1,816


    12%

    4

    Bridges

    1,038

    659

    379

    37%

    5

    Footpaths and cycleways

    4,900

    5,480

    (580)

    -12%

    6

    Drainage

    5,926

    3,465

    2,461

    42%

    7

    Recreational, leisure and community facilities

    100

    10

    90

    90%

    N/A

    Parks, open space and streetscapes

    1,700

    1,239

    461

    27%

    8

    Statues, sculptures and artworks


    680

    72

    608

    89%

    9

    Other infrastructure

    39,960

    28,681

    11,279

    28%

    10

    Total Infrastructure

    69,230

    52,716

    16,514

    24%

    N/A

    Total Capital Works Expenditure

    108,585

    82,078

    26,507

    24%

    N/A

    Represented by:

    N/A

    N/A

    N/A

    N/A

    N/A

    New asset expenditure

    54,252


    39,494

    14,758

    27%

    N/A

    Asset renewal expenditure

    49,699

    39,934

    9,765

    20%

    N/A

    Asset expansion expenditure

    1,050

    485

    565

    54%

    N/A

    Asset upgrade expenditure

    3,584

    2,165

    1,419

    40%

    N/A

    Total capital works expenditure

    108,585

    82,078

    26,507

    24%

    N/A

    1. Explanation of material variations

Ref.


Item

Explanation

1

Buildings

Due to property services renewal works ($2.8 million) carried forward to 2015-16, a surplus on property services due to tenders being lower than expected ($1.7 million) and Dockland park project and Boating Hub project ($1.34 million) yet to be completed.

2

Plant, machinery and equipment

Due to lower motor vehicle replacement ($0.18 million) and Christmas decorations refurbishments ($0.15 million), IT fit out in Kensington Town Hall ($0.18 million) and development of Solar Panel Arrays ($0.16 million) carried forward 2015-16.

3

Computers and telecommunications

Due to IT renewal and new projects ($2.02 million) carried forward to 2015-16.

4

Roads

Due to carry forward bicycle improvement program ($1.28 million), urban renewal design development projects ($0.30 million) and roadway renewal projects ($0.23 million) being carried forward to 2015-16.

5

Bridges

Due to Princess Bridge bluestone repair works ($0.24 million) and Arden Bridge strengthening works (0.15 million) being deferred.

6

Footpaths and cycleways


Due to funds for World Trade Centre project works being released later than expected ($0.57 million).

7

Drainage

Due to delays on Stormwater Harvesting projects ($0.30 million), Wells Street flood mitigation project ($0.95 million) and Kings Street/Collins Street drainage renewal project ($0.70 million) being carried forward to 2015-16.

8

Parks, open space and streetscapes

Due to lower costs for streetscape projects ($0.33 million including $0.18 million carried forward to year 2015-16) and Lonsdale Street tree replacement projects ($0.11 million) being carried forward to year 15/16.

9

Statues, sculptures and artworks

Due to delay in Public Art Program ($0.61 million) including Tunnerminnerwait and Maulboyheenner marker project, Green Transfer project and Maxims de-installation project.

10

Other infrastructure

Due mainly to works ($5.39 million) including water projects such as Lincoln Square and University Square for funding received from Office of Living Victoria being delayed as a result of agreement negotiation. Parks Recreation Infrastructure Improvement projects ($2.33 million) and St Kilda Road tree replacement ($0.60 million) being carried forward to 2015-16.


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