MEETING OF COUNCIL - Town of Cambridge

COUNCIL MINUTES
TUESDAY 27 NOVEMBER 2012
The following observations are made and should be read in conjunction with the Statement
of Financial Activity (Rate Setting Statement) in attachment 1:
Operating Revenue
Operating revenue year to date is $26.5 million on line with year to date budget of $26.5
million. Significant variances are as follows:
• Fees and charges below budget by $189k with the majority of this variance due to
waste fee revenue ($154k). Details were provided in the October report.
The current bin service numbers at the end of October are:
120lt General Waste Service 6,435
240lt General Waste Service 3,835
240lt Green Waste Service 4,073
Additional Bin Service 882
TOTAL 15,225
We would expect a reduction in Mindarie Waste Disposal costs to result and there was
provision made in the budget for approximately 1,000 tonnes of household waste less
than that which was sent to the MRC last year. The extent of the reduction will
become apparent later in the financial year.
Operating Expenses
Operating expenses year to date is $11.8 million compared to budget of $12.9 million, giving
a favourable variance of $1.1 million.
The only significant variation to report on is materials and contracts with actual expenditure
of $3.6 million against year to date budget of $4.4 million, giving a favourable variance of
$0.8 million.
Expenditure programs contributing to this variance are the following:
Timing variances:
• Sustainability programs $41k under YTD budget,
• Recreation Services Programs $20k under YTD budget;
• Consultants $73k under YTD budget;
• Road reserves street trees contract expenses $46k under YTD budget;
• Waste management operations $149k under YTD budget;
• Waste management programs $34k under YTD budget;
• Contract cleaning services $29k under YTD budget;
• Computer software licences $36k under YTD budget;
• Agency fees $42k under YTD budget;
• Equipment purchases minor $22k under YTD budget;
Permanent variances:
• Golf course interest expense $88k under YTD budget.)
This favourable variance is due to the benefit being current derived from lower interest rates
on the $11 million loan facility which is currently 3.42%
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