Council Minutes - Town of Cambridge
Council Minutes - Town of Cambridge
Council Minutes - Town of Cambridge
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COUNCIL MINUTESTUESDAY 26 JUNE 2012The following observations are made and should be read in conjunction with the Statement <strong>of</strong>Financial Activity (Rate Setting Statement) in attachment 1:Operating RevenueOperating revenue year to date is $36.2 million compared to budget <strong>of</strong> $36.4 million, giving aminor unfavourable variance <strong>of</strong> $200k (0.6%). Significant variances are as follows:• Fees and charges below budget by $423k with the majority <strong>of</strong> 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 <strong>of</strong> 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 <strong>of</strong> $32.4 million, giving afavourable variance <strong>of</strong> $0.3 million. Significant variations are as follows:• Materials and Contracts with actual expenditure <strong>of</strong> $10.3 million against year to datebudget <strong>of</strong> $10.8 million, giving a favourable variance <strong>of</strong> $500k.Expenditure programs contributing to this variance as following,• Road infrastructure non capital works ($135k),• <strong>Town</strong> 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 <strong>of</strong> $1.4 million as compared to year to date budget <strong>of</strong>$1.48 million giving a favourable timing variance <strong>of</strong> $480k. This will reduce asexpenditure such as water consumption expenditure for November to May will beinvoiced to the <strong>Town</strong> in late May and June.• Employee costs are $0.3 million over budget with actual expenditure <strong>of</strong> $13.5 millionagainst year to date budget <strong>of</strong> $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 <strong>of</strong>fset theover expenditure.• Interest expense is below budget with a favourable variance <strong>of</strong> ($54k). Lower interestrates on loan funds <strong>of</strong> $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 <strong>of</strong> this year.H:\CEO\GOV\COUNCIL MINUTES\12 MINUTES\JUNE 2012\C CR.DOCX 160