ordinary meeting of council to be held on tuesday, 26 april 2005 at ...

Ordinary Meeting <strong>of</strong> Council - 26 April 2005 3 / 8
Item 3
S03096
21 March 2005
The largest increases for 2005/2006 are in the areas <strong>of</strong> rental income and road and footpath
res<strong>to</strong>ration income. Decreases have occurred in golf course income, development assessment and
the building permit area as a result <strong>of</strong> increased competition from the private sec<strong>to</strong>r.
Interest Income
Interest income has increased by $110,000 or 12.3%. This is as a result <strong>of</strong> the strong performance <strong>of</strong>
Council’s investments. The actual increase in the amount <strong>of</strong> funds on investment has seen earnings
steadily increase over the previous three years.
Council’s interest earned on investments (excluding interest charged on overdue rates) has
increased from $825,000 in 2004/2005 <strong>to</strong> $935,000 in 2005/2006.
The continued allocation <strong>of</strong> interest earned on Council’s depreciation and property reserves will
result in an estimated $669,500 restricted <strong>to</strong> those reserves during 2005/2006.
Recurrent Grants
Recurrent grant income has decreased by $54,900 or (1.2%). This amount is broken down as
follows:
• $11,400 ↑ Financial Assistance
• $1,000 ↑ Pensioner Rebates
• $67,300 ↓ Specific Purpose Grants.
Each year the Grants Commission advise Council <strong>of</strong> the increase in the Financial Assistance Grant.
At the time <strong>of</strong> writing this report the actual increase for 2005/2006 has not yet <strong>be</strong>en advised and an
estimated increase <strong>of</strong> 3% has <strong>be</strong>en included in the draft budget.
Specific purpose grants include Community Services grants, the RTA road safety grant, RTA block
grant, street light subsidy, 3 x 3 program and bus route subsidy. The majority <strong>of</strong> specific purpose
grants increase annually by CPI. However the major decrease <strong>of</strong> $54,900 relates <strong>to</strong> the Child Care
Benefit grant.
Section 94 Contributions
The 2005/2006 budget includes an estimate <strong>of</strong> $4.7 million for Section 94 revenue.
It should <strong>be</strong> noted that Section 94 revenue has no effect on Council’s Net Surplus / (Deficit) as this
revenue is externally restricted and au<strong>to</strong>matically transferred <strong>to</strong> Section 94 reserves for future
works.
Capital Grants
The Australian Government announced in January last year that it will extend the Roads <strong>to</strong>
Recovery Program for an additional four years, until 30 June 2009. All <strong>council</strong>s will <strong>be</strong> eligible for
additional spending from the program. Nationally the funding will <strong>be</strong> distributed at a rate <strong>of</strong> $300
million a year, however the exact amounts <strong>to</strong> <strong>be</strong> paid <strong>to</strong> each Council will not <strong>be</strong> announced until
the federal budget is announced in May 2005. Council has estimated an amount <strong>of</strong> $315,000 in the
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