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 and $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 2015. 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 Council. No consolidated budget is prepared.
Mainly due to higher than anticipated hoarding permits, space occupancy revenue, hoarding rental, property and site service fees.
Grants - capital
Substantially due to additional funding received, including Docklands Park Enhancement Works - Victoria Harbour ($2.30 million) and VicRoads Blackspot funding ($0.65 million).
Contributions - monetary
Due to higher public open spaces contributions ($3.61 million).
Contributions - non monetary
Due mainly to external asset contributions on Community Hub in Dockland ($1.23 million), Cardigan Street Chapel ($1.19 million) and Monument Park ($0.84 million).
Net gain on asset disposal
Due mainly to loss on artworks and motor vehicles. Net gains on sale of land were not as high as anticipated.
Fair value adjustments for investment properties
Due to investment land revaluation.
Due to higher investment interest ($1.67 million) from higher than anticipated cash balance, commercial rent ($1.43 million), grants in kind revenue ($0.97 million), valuation data sales ($0.72 million) and other various sales and cost recoveries.
Bad and doubtful debts
Due to lower provision for Parking Infringement Notice doubtful debts as a result of lower PINs revenue and improving recovery rates.
Substantially due to land tax for the Munro site ($0.69 million), write-down on investment ($0.27 million), higher insurance provision ($0.24 million) and rent increase of CAE library ($0.20 million).
Net asset revaluation increment
Due to gain on fixed asset valuation including land ($188.53 million), building ($26.13 million) and Roads ($13.68 million).
Due mainly to ($4.53 million) works in City Square being cancelled owing to the Melbourne Metro Rail Project progressing and works on the CH1 Precinct being deferred due to the Town Hall Precinct Plan with design work due to commence in 2016-17.
Due mainly to the Queen Victoria Market Precinct Renewal (QVMPR) budgeted to be managed via a separate fund, however in December 2015 Council approved establishment of the City of Melbourne QVMPR Program Reserve. This was offset by various projects carried forward to 2016-17.
Footpaths and cycleways
Due to projects ($1.11 million) and Westwood Place public lighting installation ($0.16 million) to be completed in 2016-17.
Due mainly to Wells Street drain upgrade and stormwater harvesting ($0.94 million), Queensbridge Street upgrade works ($0.40 million), Haig Street/Cardigan Street kerb and channel renewal ($0.17 million) and Rankins Road drain renewal ($0.07 million) carried forward to 2016-17.
Recreational, leisure & community facilities
Due mainly to lower than anticipated costs on Carlton Kathleen Syme Library and Community Centre ($1.36 million).
Parks, open space & streetscapes
Substantially due to water projects located at University Square as a result of consideration for Melbourne Metro Rail Project and Lincoln Square delayed at the design stage ($5.43 million), upgrade to sports facilities at Princes and Royal Park delayed due to tenders ($2.28 million), Railway Place and Miller Street Reserve Park expansion delayed due to external authority approvals ($1.35 million), Streetscape program adjusted due to the deferral of Elizabeth Street Stage One Masterplan works ($1.19 million), works on various new open spaces delayed to due to scope change ($1.73 million) and Parks Renewal Program delayed due to events in parks in addition to seasonal horticultural and irrigation works planned for winter ($0.96 million) carried forward to 2016-17.
Substantially due to design and construction of Docklands Park ($0.71 million), street lighting network upgrade to LED lights ($0.62 million) and acquisition of Public Art across various projects including University Square ($0.53 million) carried forward to 2016-17.