MEETING OF COUNCIL - Town of Cambridge

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COUNCIL MINUTESTUESDAY 26 FEBRUARY 2013(ii) Capital Revenue - Land Sales - Ocean Mia Lots, 501,560 and 537A revision of potential land sales this financial year indicates that the budget for land saleproceeds of $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 of potential land sales this financial year indicates that the budget for land saleproceeds of $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 of general waste bins and the returns of additional bins.This has resulted in reduced waste fee revenue of $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 of the Wembley Golf Course operations indicate that although other areas ofoperating 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 of $139,000. Interest rates areexpected to remain low for the remainder of 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 of 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\COUNCIL MINUTES\13 MINUTES\FEBRUARY 2013\C CR.DOCX 179
COUNCIL MINUTESTUESDAY 26 FEBRUARY 2013In accordance with the Regulations, the results of the budget review are to be submitted toCouncil within thirty days of the review being completed. Council is then required to considerthe results of the review and determine whether or not to adopt the review, any part of thereview or any recommendations made in the review. As per Regulation 33A, a copy of both thereview and Council’s determination are then to be provided to the Department of LocalGovernment within thirty days.The Town’s Budget Implementation and Management Policy 3.2.2 states that:It is the function and duty of the Chief Executive Officer to cause Council decisions to beimplemented and manage the day-to-day operations of the Town. To ensure the ChiefExecutive Officer has the capacity to undertake this role, the Chief Executive Officer mayreallocate funding to accommodate over expenditure variances. The reallocation of funds shallresult in a revised budget for the purpose of producing the monthly financial report andaccordingly be reported as a permanent variance.The Chief Executive Officer may authorise expenditure over a revised budget to a maximum of$50,000. In all other instances, authority from Council shall first be obtained.As some of the budget amendments are greater than $50,000, the amendments are submittedto Council for approval. Note that an Absolute Majority is not required as the budgets are not foran additional purpose.FINANCIAL IMPLICATIONS:The projected budget for year end indicates a surplus position of plus or minus $150,000.STRATEGIC DIRECTION:The management of budgeted funds is consistent with the Strategic Plan’s goal of financialsustainability, by ensuring the Town's expenditure is matched by its revenue.COMMUNITY CONSULTATION:This matter has been assessed under the Community Consultation Policy. In accordance withthe assessment criteria, it was rated at Level 1, for which no community consultation isrequired.ATTACHMENTS:1. Summarised Statement of Financial Activity as at 31 December 2012 and notesaccompanying the statement.H:\CEO\GOV\COUNCIL MINUTES\13 MINUTES\FEBRUARY 2013\C CR.DOCX 180
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MEETING OF COUNCIL - Town of Cambridge

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