Council Minutes - Town of Cambridge

COUNCIL MINUTESTUESDAY 26 JUNE 2012Asset Management ReserveThis reserve contains the following subsidiary reserves:• Buildings• Light Fleet• Plant• Equipment• InfrastructureThe light fleet reserve currently has a $500k balance, in excess of future requirements,however the plant sub reserve with only $36k has been identified as being insufficient to meetfuture asset replacements. It is therefore recommended that $200,000 be transferred from lightfleet to the plant reserve to address the shortfall.The Infrastructure Reserve is a generalised classification and it is recommended that this betransferred to the building and equipment reserves and the subsidiary reserve classification ofInfrastructure disbanded. The transfer as follows:• $120,000 be transferred to the equipment reserve and• $219,000 be transferred to the building reserve.POLICY/STATUTORY IMPLICATIONS:The Local Government Act 1995, Section 6.4 requires the preparation of financial reports. TheLocal Government (Financial Management) Regulations 1996, in particular Regulation 34,expands on this requirement to include a monthly financial report to be prepared identifyingsignificant variations between actual and budget. This report complies with this requirement.FINANCIAL IMPLICATIONS:The variations in expenditure and revenue line items, compared to budget, may have an impacton Council funds.STRATEGIC DIRECTION:The management of budgeted funds is consistent with the Strategic Plan’s goal of financialsustainability, by ensuring our expenditure is matched by our revenue.COMMUNITY CONSULTATION:This matter has been assessed under the Community Consultation MatrixConsultation Level – Inform - To provide the public with balanced and objective information toassist them in understanding the problem, alternatives, and/or solutions.ATTACHMENTS:1. Monthly Financial Statements - May 20122. Budget Variation ReportH:\CEO\GOV\COUNCIL MINUTES\12 MINUTES\JUNE 2012\C CR.DOCX 163