MEETING OF COUNCIL - Town of Cambridge
MEETING OF COUNCIL - Town of Cambridge
MEETING OF COUNCIL - Town of Cambridge
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<strong>COUNCIL</strong> MINUTESTUESDAY 26 FEBRUARY 2013(ii) Capital Revenue - Land Sales - Ocean Mia Lots, 501,560 and 537A revision <strong>of</strong> potential land sales this financial year indicates that the budget for land saleproceeds <strong>of</strong> $7,606,700 will not be realised.Recommendation: Amend the annual budget for land sales - Ocean Mia Lots 501,560 and 537by $7,606,700 to $nil, and the corresponding transfer to the Endowment Lands Account.(iii) Capital Revenue - Land Sales - Ocean Mia Cityside Stage 1 releaseA revision <strong>of</strong> potential land sales this financial year indicates that the budget for land saleproceeds <strong>of</strong> $4,791,000 will not be fully realised.Recommendation: Amend the annual budget for land sale proceeds - Ocean Mia CitysideStage 1 release by $3,441,000 to $1,350,000, and the corresponding transfer to theEndowment Lands Account.(iv) Waste Management - Waste FeesBoth the bin audit conducted last year and the waste reduction promotional material have had asignificant impact on the downsizing <strong>of</strong> general waste bins and the returns <strong>of</strong> additional bins.This has resulted in reduced waste fee revenue <strong>of</strong> $200,000 which represents a permanentdifference.Recommendation: Amend the annual budget for waste fee revenue by $200,000.(v) Wembley Golf Course - Green FeesA revision <strong>of</strong> the Wembley Golf Course operations indicate that although other areas <strong>of</strong>operating revenue such as the driving range and pro shop continue to perform above budget,green fees remains under YTD budget by $220,000. It is expected that the year end result willbe $240,000 and therefore is a permanent variance.Recommendation: Amend the annual budget for green fees by $240,000.(vi) Wembley Golf Course - Interest ExpenseReduced interest payments made for the variable $11 million loan for the Wembley Golf CourseDriving Range, Pro Shop project have resulted in a variance <strong>of</strong> $139,000. Interest rates areexpected to remain low for the remainder <strong>of</strong> the year and the variance is forecast to increase to$240,000 for year end and will be a permanent difference.Recommendation: Amend the annual budgets for interest expense for the pro shop and thedriving range by $240,000.POLICY/STATUTORY IMPLICATIONS:The Local Government Act (1995), Section 6.4 requires the preparation <strong>of</strong> financial reports.The Local Government (Financial Management) Regulations 1996, in particular Regulation33A, which has effect as from 1 July 2005, expands on this requirement to include an annualbudget review to be carried out between 1 January and 31 March for each financial year. Theintention is to ensure local governments conduct at least one budget review each financial year.This report complies with this requirement.H:\CEO\GOV\<strong>COUNCIL</strong> MINUTES\13 MINUTES\FEBRUARY 2013\C CR.DOCX 179