Council Minutes - Town of Cambridge

COUNCIL MINUTESTUESDAY 26 JUNE 2012The following observations are made and should be read in conjunction with the Statement ofFinancial Activity (Rate Setting Statement) in attachment 1:Operating RevenueOperating revenue year to date is $36.2 million compared to budget of $36.4 million, giving aminor unfavourable variance of $200k (0.6%). Significant variances are as follows:• Fees and charges below budget by $423k with the majority of this variance due toplanning fee revenue ($52k), building fees ($40k) and Wembley Golf Course fees andcharges ($131k) below budget.• Interest earnings are $143k above budget with the majority of this variance due tomunicipal interest $71k, Endowment Lands Account interest $28k and reserve interest$30k above budget.Operating ExpensesOperating expenses year to date is $32.1 million compared to budget of $32.4 million, giving afavourable variance of $0.3 million. Significant variations are as follows:• Materials and Contracts with actual expenditure of $10.3 million against year to datebudget of $10.8 million, giving a favourable variance of $500k.Expenditure programs contributing to this variance as following,• Road infrastructure non capital works ($135k),• Town planning scheme review ($64k),• Sustainability programs($68k),• Ocean beaches buildings non capital works ($21k),• Road reserves non capital works ($19k),• Parks grounds non capital works ($72k)• Utilities expenditure incurred to date of $1.4 million as compared to year to date budget of$1.48 million giving a favourable timing variance of $480k. This will reduce asexpenditure such as water consumption expenditure for November to May will beinvoiced to the Town in late May and June.• Employee costs are $0.3 million over budget with actual expenditure of $13.5 millionagainst year to date budget of $13.2 million, partly due to a shift from using contractlabour to in house labour in operational areas such as at the Wembley Golf Course andQuarry Amphitheatre. Therefore savings in contracts and materials, will partially offset theover expenditure.• Interest expense is below budget with a favourable variance of ($54k). Lower interestrates on loan funds of $11 million for the golf course are a contributing factor. Recentinterest rates cuts by the Reserve Bank will see this expenditure item continue to bebelow budget for the remainder of this year.H:\CEO\GOV\COUNCIL MINUTES\12 MINUTES\JUNE 2012\C CR.DOCX 160