MEETING OF COUNCIL - Town of Cambridge

COUNCIL MINUTESTUESDAY 26 FEBRUARY 2013EXECUTIVE SUMMARYThe end of year result is expected to finish plus or minus $150,000 of a break even position.This is mainly due to reduced revenue from fees and charges for waste disposal and golfcourse rounds and reduced loan interest expenses resulting from a lower variable rate.Carried forward projects, some of which are in progress but spanning financial years, areexpected to be $1.92 million. The two main items being carried forward (in part) are theMatthews Netball Centre development ($500,000) and the Cambridge Street enhancement$720,000).DETAILS:The following commentary should be read in conjunction with the revised rate setting statementcontained in attachment one.Operations - after adjustment for non cash movements, the surplus from operations isestimated to be $144,000. This is a combination of the following favourable and unfavourablevariances:• Interest expenditure savings with loan interest payments on $11 million loan forWembley Golf Course ($139,000).• Materials and contracts expenditure reduced mainly attributable to timing differenceswith works and parks non capital works some of which will be carried forward($193,000) favourable variance.• Fees and charges shortfall with waste fees down ($200,000) and Wembley Golf Courseoverall fee revenue down ($152,000), (both unfavourable variances).Other areas of revenue and expenditure are only experiencing minor fluctuations from YTDbudget.Non Operating Revenue - a review of non operating revenue indicates a mixture of favourableand non favourable variances as follows:• Non operating grants and contributions will be $98,000 more than budget, the bulk ofthis favourable variance being a grant received this financial year not budgeted for.• Land proceeds - the annual budget anticipated a number of land sales during the year.A number of these land sales will not occur in this financial year. Proceeds of $18.3million are expected to be reduced by $11 million.Non Operating Expenditure - has been reduced by $3.3 million, largely due to the CambridgeSt - Street Enhancement Stage 1. The project, with a $1.4 million project budget, willcommence in 2013 and span two financial years, with $125,000 being spent this financial yearfunded from a $30,000 black spot grant and $95,000 from reserve.Reserve and Endowment Lands Account Transfers - net draw down on reserves andEndowment Lands Account has decreased by $2.2 million, primarily due to a reduced transferfrom the area improvement reserve of $1.3 million associated with the above project. Theproposed budget amendment for Ocean Mia land proceeds will reduce the transfer to theEndowment Land Account by $11 million.H:\CEO\GOV\COUNCIL MINUTES\13 MINUTES\FEBRUARY 2013\C CR.DOCX 177