q3 performance report to council 2015-16 - vic...projects. underlying result – sufficient...

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Contents

Contents .................................................................................................................................................. 1

Section 1 – Executive Overview .............................................................................................................. 3

1.1 Introduction ............................................................................................................................ 3

1.2 Performance against Council Plan .......................................................................................... 4

1.3 Financial Overview .................................................................................................................. 5

1. Operating Result ................................................................................................................................. 5

2. Cash and Investments ......................................................................................................................... 7

3. Victorian Auditor‐General’s Office (VAGO) Indicators ........................................................................ 9

4. Operating Result by Division ............................................................................................................. 10

5. Financial and resource implications .................................................................................................. 12

Section 2 – Performance against Council Plan ...................................................................................... 13

Section 3 – Financial Statements .......................................................................................................... 14

3.1 Income Statement ................................................................................................................. 25

3.2 Capital Projects ..................................................................................................................... 26

3.3 Balance Sheet ........................................................................................................................ 27

3.4 Cashflow Statement .............................................................................................................. 28

Section 4 – Capital Works ..................................................................................................................... 29

4.2 Capital Revenue ................................................................................................................... 30

4.3 Capital Expenditure .............................................................................................................. 30

4.4 Capital Budget Status ............................................................................................................ 34

Section 5 – Divisional Overview ............................................................................................................ 35

5.1 Executive Office .................................................................................................................... 35

5.2 City Strategy .......................................................................................................................... 36

5.3 Corporate Services ................................................................................................................ 36

5.4 Infrastructure Services .......................................................................................................... 37

5.5 Community Services .............................................................................................................. 38

Section 6 – Community Engagement .................................................................................................... 39

Cover Photo – Bright n Sandy Food and Wine Festival

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Section1–ExecutiveOverview

1.1 Introduction

The Q3 Quarterly Performance Report provides a detailed report on performance against

the Council Plan 2013‐2017 and the 2015‐2016 Annual Budget for the third quarter.

The report is structured into various sections. This executive summary provides a summary

of non‐financial and financial issues and highlights for the quarter. The second section

provides a summary of performance against the Council Plan (Activities from the Annual

Budget). The third and fourth sections provide a report on performance against the Annual

Budget and Capital Works. The fifth section provides a summary of performance of

Divisions during the quarter and the sixth section provides a report on Community

Engagement activities undertaken during the quarter.

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1.2 PerformanceagainstCouncilPlan

This is the third quarter report against the 2015‐2016 Activities, which align directly with the

goals of the Council Plan 2013‐2017.

For the quarter three report, 40 activities have been reported against with 7 activities being

completed, 27 tracking at least 90% on target. Of the 6 remaining activities, 3 activities are

tracking between 70‐90% of target and 3 activities are tracking at less than 70% against

quarterly targets.

Further detail can be found on page 13, under Section 2.

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1.3 FinancialOverview

The financial overview includes:

1. Operating Result

2. Cash and Investments

3. Victorian Auditor General’s Office (VAGO) Indicators

4. Operating Results by Division

5. Financial and Resource Implications

1.OperatingResult

Line Item $ ' 000s

2015/ 16YTD

AdjustedBudget

2015/ 16YTD

Ac tuals

2015/ 16YTD

AdjustedVarianc e

2015/ 16Adjusted

Budget

CurrentForec ast2015/ 16

Full year Forec ast Varianc e

Operating Services & New Initiatives Budget

Income Rates and Charges 61,808 62,384 576 82,350 82,690 340 Statutory Fees and Fines 3,026 3,791 765 3,990 4,706 716 User Fees 5,232 6,060 828 7,462 7,947 485 Rental Income 3,589 3,644 55 3,970 4,042 72 Grants - Operating 7,649 6,900 (749) 10,075 8,936 (1,139) Grants - Capital 880 1,104 224 1,749 1,914 165 Contributions - Cash - Operating - 87 87 25 126 101 Contributions - Cash - Capital 822 3,305 2,482 2,699 4,201 1,502 Interest Income 1,095 1,770 676 1,460 1,994 534 Other Income 1,342 2,058 716 1,700 2,462 762 Net Profit(Loss) on Disposal of assets - 1,216 1,216 - 1,216 1,216 Total Income 85,443 92,318 6,874 115,480 120,232 4,752

Expenditure Employee Costs 28,727 28,404 322 38,839 39,355 (516) Materials and Services 31,671 29,022 2,648 42,538 42,032 506 Bad and Doubtful Debts 8 15 (7) 172 183 (11) Depreciation and Amortisation 11,400 11,542 (141) 15,206 15,389 (183) Other Expenses 389 229 160 519 436 83 Finance Costs 598 598 (0) 730 730 (0) Total Expenditure 72,792 69,811 2,982 98,004 98,125 (121)

Operating Result - Surplus 12,651 22,507 9,856 17,476 22,107 4,631

2015/16 Year to date operating result The March year to date result is a surplus of $22.5M which is $9.8M favourable to Budget.

6

2015/16 Forecast operating result The current forecast for the year represents a surplus of $22.1M which is $4.6M favourable to Budget. The underlying forecast operating result is favourable to budget by $1.3M and excludes the following one off or timing items:

($1.26M) – 50% Grants Commission funding received in 2014/15 ($1.1M) – Forecast Capital funding lower than budget $1.16M – Net proceeds from the sale of Sandringham Child Care Centre. $0.6M – Refund from Transpacific regarding the carbon tax paid on the waste

disposal contract $2.8M – Increase in resort & recreation levy to be transferred to reserves $0.16M – 2 bathing boxes sold in 2015/16. All net proceeds to be quarantined in

reserves for future Dendy Beach Precinct works. $0.4M – Interest income from term deposits forecast to increase due to favourable

operating cash position $0.4M - Supplementary Rates $0.1M – Reduction in Workcover premium

7

2.CashandInvestmentsThe cash position of $81.4M has increased by $24.7M from $56.7M and is $23.8M favourable to budget as at March 2016 mainly due to:

$7.7M greater opening cash balance than budgeted o Rollover of 2014/15 capital projects $4.5M (timing to be spent in 2015/16 and

2016/17) o Unbudgeted sale proceeds of the Hampton Child Care centre $2.6M

(transferred to the early learning childhood facilities reserve) o Favourable 2014/15 operating and capital results (transferred to the

Infrastructure Reserve) $3.4M unbudgeted sale proceeds from Sandringham Child Care centre (transferred

to the early learning childhood facilities reserve) $8.3M YTD favourable operating cash flow results and $4.2M YTD capital cash-flow

results.

30.Jun.15

Actual Actual Budget Variance Budget Forecast Variance$' 000 $' 000 $' 000 $' 000 $' 000 $' 000 $' 000

Unrestricted 24,255 43,458 31,123 12,335 21,339 21,938 599Restricted and committed funds 32,491 37,957 26,464 11,493 25,716 38,799 13,083

56,746 81,415 57,587 23,828 47,055 60,737 13,682

Cash & cash equivalents (including investments) consists of:

Retail banks 52,000 76,000Community banks 2,000 - Cash on hand and at bank 2,746 5,415

Total cash and cash equivalents 56,746 81,415

Statutory ReservesRecreational Land Reserve 8,926 11,768 8,886 2,882 8,909 12,046 3,137Car Parking Reserve 381 382 375 7 385 391 6

Total Statutory Reserves 9,307 12,150 9,261 2,889 9,294 12,437 3,143Discretionary Reserves

Infrastructure Reserve 4,990 4,983 679 4,304 696 3,465 2,769Dendy Street Beach Improvement Reserve 764 1,231 624 607 915 1,224 309Community Facilities Enhancement Reserve 908 908 921 (13) 945 931 (14)Early Childhood Facilities Reserve 2,560 5,723 2,580 3,143 2,645 5,619 2,974Defined Superannuation Shortfall 1,000 1,000 1,013 (13) 1,538 1,500 (38)Unspent Conditional Grants Reserve 345 345 - 345 - - - Capital Works Carried Forward Reserve 3,286 1,573 2,290 (717) - 3,820 3,820

Total Discretionary Reserves 13,853 15,763 8,107 7,656 6,739 16,559 9,820Total Reserves 23,160 27,913 17,368 10,545 16,033 28,996 12,963Committed Funds

Trust Funds and Deposits 3,517 4,111 3,282 829 3,099 3,693 594Long Service Leave fund 5,814 5,933 5,814 119 6,584 6,110 (474)

Total Committed Funds 9,331 10,044 9,096 948 9,683 9,803 120Total Restricted and Committed funds 32,491 37,957 26,464 11,493 25,716 38,799 13,083

Cash and cash equivalents at the end of the period

31.Mar.16 Full Year

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Council’s investments totalling $76M at 31 March are 100% term deposits. They are as follows:

Financial

Institution Long Term Short Term

Interest

Period

(Days)

NAB AA‐ A‐1+ Term Deposit 4,000 188 3.00% 11/04/2016

BOQ A‐ A‐2 Term Deposit 4,000 188 3.00% 11/04/2016



Suncorp A+ A‐1 Term Deposit 4,500 154 3.05% 13/05/2016

CBA AA‐ A‐1+ Term Deposit 1,500 182 3.00% 24/05/2016

Suncorp A+ A‐1 Term Deposit 5,000 177 3.00% 26/05/2016

NAB AA‐ A‐1+ Term Deposit 2,000 168 3.02% 3/06/2016

ANZ AA‐ A‐1+ Term Deposit 3,000 116 3.13% 10/06/2016





NAB AA‐ A‐1+

Floating 30 days

BBSW + 1.00%

margin 5,000 31 15/04/2016 182 3.0933% 15/08/2016

NAB AA‐ A‐1+

Floating 30 days

BBSW + 1.02%

margin 5,000 28 26/04/2016 182 3.11% 26/08/2016

NAB AA‐ A‐1+

Floating 30 days

BBSW + 1.00%

margin 5,000 33 4/04/2016 184 3.09% 2/09/2016

NAB AA‐ A‐1+

Floating 30 days

BBSW + 1.04%

margin 5,000 32 5/04/2016 185 3.13% 5/09/2016

NAB AA‐ A‐1+

Floating 30 days

BBSW + 1.02%

margin 4,000 33 18/04/2016 184 3.115% 16/09/2016

NAB AA‐ A‐1+

Floating 30 days

BBSW + 1.03%

margin 2,000 34 26/04/2016 215 3.120% 24/10/2016

CBA AA‐ A‐1+

Floating 90 days

BBSW + 1.15%

margin 5,000 91 18/04/2016 1,827 3.44% 18/01/2021

ANZ AA‐ A‐1+

Floating 90 days

BBSW + 1.40%

margin 3,000 91 30/05/2016 1,827 3.69% 1/03/2021

Total 76,000 3.32%

Institution

S & P

Rating

Investment

Holdings

(000's)

% Investment

holding by

Institution

BCC

Guidelines

(Max

Threshold)

Total

Investment

Holdings by

ratings

(000's)

% Total

Investment

Holdings by

ratings

BCC

Guidelines

(Max

Threshold)

ANZ AA-/A-1+16,000 21% 60%

CBA AA-/A-1+6,500 9% 60%

NAB AA-/A-1+32,000 42% 60% 54,500 72% 100%

Suncorp A+/A-1 9,500 12% 30% 9,500 12% 50%

Bank of

Queensland A‐/A‐2 12,000 16% 30% 12,000 16% 50%

Total 76,000 100% 76,000 100%

Maturity Date

S & P Rating

Investment Type

Principal

Investment

( $'000) Reset Date

Total

Investment

Periods

(Days)

Investment

Rate %

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3.VictorianAuditor‐General’sOffice(VAGO)Indicators

Indicator

VAGO Target(to maintain

low risk)Forecast

PerformanceForecast

AchievableLiquidity(Current assets / Current liabilities) > 1.5 2.74 YesSelf-financing(Net operating cash flow / Underlying revenue) > 20.0% 30.00% YesCapital Replacement(Total Capital spend : Depreciation) > 1.5 1.99 YesIndebtedness(Non-current liabilities/Own source revenue) < 40.0% 3.10% YesUnderlying result (Net surplus/Revenue) > 0% 18.39% Yes

Renewal gap(Renewal capital spend:Depreciation) > 1.0 1.02 Yes

Definitions:

Liquidity – the ability to pay liabilities within the next 12 months.

Self Financing – the ability to replace assets using cash generated from day to day operations.

Capital Replacement – to ensure sufficient spending on capital renewal and new capital works.

Indebtedness – the ability to repay debt from own source revenue being revenue not tied to specific projects.

Underlying result – sufficient operating income to cover operating expenses.

Renewal gap – to ensure sufficient spending on existing capital assets.

LGPRF Performance IndicatorsExpected

Range2015/16

ForecastWithin

Range?Average residential rate per residential property assessment $700 to $2,000 $1,905Expenses per property assessment $2,000 to $5,000 $2,241Unrestricted cash compared to current liabilities 10% to 300% 167.7%Loans and borrowings compared to rates 0% to 70% 8.9%Loans and borrowings repayments compared to rates 0% to 20% 6.0%Adjusted underlying surplus (or deficit) -20% to 20% 14.6%Rates compared to adjusted underlying revenue 30% to 80% 72.0%Rates compared to property values 0.15% to 0.75% 0.18%

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4.OperatingResultbyDivision

Division (in '000s)

2015/ 16YTD

AdjustedBudget

2015/ 16YTD

Ac tuals

2015/ 16YTD

AdjustedVarianc e

2015/ 16Adjusted

Budget

CurrentForecast2015/ 16

AdjustedBudget

lessForecastVarianc e

2015/16 Adjusted

Budget Percentage

Variance

Executive 3,143 3,054 89 4,291 4,576 (285) -6.6%Corporate Services 4,762 4,288 474 7,018 7,005 13 0.2%

Environ. & Infrastructure 22,087 20,247 1,840 29,976 29,237 740 2.5%

City Planning & Amenity 2,887 1,363 1,524 3,748 3,249 499 13.3%

Community Services 8,622 7,771 851 11,546 11,231 316 2.7%Underlying Operating 41,501 36,722 4,779 56,579 55,297 1,282 2.3%

Rates (61,659) (62,321) 661 (82,245) (82,580) 335 -0.4%Corporate Finance (2,939) (7,156) 4,217 (3,568) (7,897) 4,329 -121.3%Capital Income (953) (1,293) 340 (3,448) (2,316) (1,132) 32.8%Depreciation 11,400 11,541 (141) 15,206 15,389 (183) -1.2%

Grand Total (12,652) (22,508) 9,856 (17,476) (22,107) 4,631 26%

Executive forecast unfavourable ($285k) ($104k) – Better Place Approach restructure – Internal transfer of positions from

other Departments to create the Better Place Approach department. The variance relates to the temporary Manager role.

($159k) - Communications and Customer Service employee costs unfavourable due to the department restructure and the need to utilise existing EFT to meet increasing pressure on customer service performance targets.

Corporate Services forecast favourable $13k

($47k)– Backfill for Governance admin transition and additional audit committee member.

($42k) – Increase in postage charges effective 1/1/2016. Delay in going live with new telecommunications contract has incurred additional costs. Now fully implemented.

$85K – Savings as a result of leased equipment contract being extended. $33k – Savings in fleet costs mainly due to a decrease in number of vehicles. $42k – 2015/16 Insurance premiums lower than the estimate in the budget which

reflects market trend.

Environment & Infrastructure forecast favourable $740k $175k – Increase in the number of permit fees issued due to greater building activity

(hoarding, cranes, vehicle cross etc) ($127k) – Additional labor costs for Traffic Management and Drainage related to

increased planning applications ($38k) – Expenditure for Integrated Water Management Plan, funding received in

14/15. $150k – Low voltage power line underground project to be completed in 16/17 due to

timing issues with supplier. $70k – Income received for recycling materials from prior year 2014/15 $50k –Kerbside Recycling decrease in fuel costs and lower contract CPI. $41k – Waste Education Program income unbudgeted.

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$55k – Green Waste contract lower due to decrease in fuel costs and lower contract CPI.

$149k – Garbage collection contract lower than budgeted. Contract rate linked to rise and fall in oil price.

($104k) – Hard Waste Collection contract cost increased due to greater service demand.

$130k – Latest estimate for the installation of Sustainable Public Lighting to result in savings.

$84k – Lower contract expenditure required Infrastructure maintenance works due to lower CPI increases.

City Planning & Amenity forecast favourable $499k ($159k) – Development Services budget is forecast to be unfavourable.

o ($294k) Salaries - The restructure has increased salaries on a temporary basis in order to implement the recommendations from the service review and process the increase in planning applications. The increase in salaries of $294k (of which $210k relates to the temporary restructure) includes an increase in agency staff required to process applications and to cover vacancies.

o $198k Fees and charges - The increase in planning application fees has been used to partly fund the increase in resources required to process applications and manage the implementation of the recommendations from the review.

o ($65k) – Legal fees and legal appeal fees unfavourable due to increased applications.

$518k – Increase in the number of parking infringements issued due to efficiency gains and weather conditions

$112k – Parking fees favourable.

Community Services favourable $316k ($76k) – Aged Services Regional projects – timing expenditure over a number of

financial years. $38k – Cost of Delivered Meals program has reduced due to a reduction in demand. $326k – Family & Cultural Services is forecast to be favourable:

o $81k – Bayside Film Festival and Youth Documentary ceased as per council resolution

o $41k – Decrease in employee costs in Arts & Culture due to vacant role and savings identified.

o $38k – Service Planning and Development position made redundant, the savings in employee costs will assist in funding the new Governance officer role.

o $29k – Baby Capsule program & Home Care for Families ceased October 2015 as per council resolution.

Corporate Finance favourable $4.32M

$1.16M – Net proceeds for the sale of Sandringham Child Care Centre. $164k – 2 bathing boxes sold in 2015/16. All net proceeds to be quarantined in

reserves for future Dendy Beach Precinct works. $598k – Refund from Transpacific regarding the carbon tax paid on the waste

disposal contract $2.8M – Increase in resort and recreation levy $450k – Interest from term deposits forecast to increase due to favourable operating

cash position.

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($1.26M) - 50% Grants Commission funding received in 2014/15. $100k – Decrease in workcover premiums relating to a reduction in claims, and staff

redundancies.

5.Financialandresourceimplications

The year‐end forecast is a surplus of $22.1M which is $4.6M favourable to budget.

The underlying forecast operating result is favourable to budget by $1.3M and excludes the following one off items including ($1.3M) Grants Commission where the funding was received in advance in 2014/15, ($1.1M) reduction in capital funding of $2M relating to deferral of capital income to 2015/16, $1.2M net proceeds for the sale of Sandringham Child care centre, $2.8M from Resort and Recreation Levy which is transferred to the reserves (balance sheet) for future Open Space enhancements, $598k refund from Transpacific for carbon tax paid on the waste disposal contract, $400k increase in supplementary rate income, $100k reduction in Workcover premium.

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Section2–PerformanceagainstCouncilPlan

25

Section3–FinancialStatements

3.1 IncomeStatement

Line Item $ ' 000s

2015/ 16YTD

AdjustedBudget

2015/ 16YTD

Ac tuals

2015/ 16YTD

AdjustedVarianc e

2015/ 16Adjusted

Budget

CurrentForec ast2015/ 16

Full year Forec ast Varianc e

Operating Services & New Initiatives Budget

Income Rates and Charges 61,808 62,384 576 82,350 82,690 340 Statutory Fees and Fines 3,026 3,791 765 3,990 4,706 716 User Fees 5,232 6,060 828 7,462 7,947 485 Rental Income 3,589 3,644 55 3,970 4,042 72 Grants - Operating 7,649 6,900 (749) 10,075 8,936 (1,139) Grants - Capital 880 1,104 224 1,749 1,914 165 Contributions - Cash - Operating - 87 87 25 126 101 Contributions - Cash - Capital 822 3,305 2,482 2,699 4,201 1,502 Interest Income 1,095 1,770 676 1,460 1,994 534 Other Income 1,342 2,058 716 1,700 2,462 762 Net Profit(Loss) on Disposal of assets - 1,216 1,216 - 1,216 1,216 Total Income 85,443 92,318 6,874 115,480 120,232 4,752

Expenditure Employee Costs 28,727 28,404 322 38,839 39,355 (516) Materials and Services 31,671 29,022 2,648 42,538 42,032 506 Bad and Doubtful Debts 8 15 (7) 172 183 (11) Depreciation and Amortisation 11,400 11,542 (141) 15,206 15,389 (183) Other Expenses 389 229 160 519 436 83 Finance Costs 598 598 (0) 730 730 (0) Total Expenditure 72,792 69,811 2,982 98,004 98,125 (121)

Operating Result - Surplus 12,651 22,507 9,856 17,476 22,107 4,631

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3.2 CapitalProjects

CAPITAL in $'000's

Adjusted Budget

YTD Actual

Budget Actual

Variance fav./

(unfav)

2015/16 Adjusted Budget

Current Forecast

2015/16 Adjusted Budget

less Forecast variance

2015/16 Carry

Forward Balance

to 2016/17

Property ExpenditureBuildings 3,363 2,355 1,008 10,957 5,712 5,244 4,895

Building Improvements 1,683 638 1,045 2,376 2,026 350 165Heritage Buildings 219 55 163 317 317 - Plant & Equipment Expenditure - Fixtures, Fittings and Furniture 176 116 60 221 215 6Arts and Culture 3 5 (2) 30 30 - IT Systems, Network, Servers and Communication 862 488 374 1,444 935 509 590Library Assets 296 266 30 395 365 30Infrastructure Expenditure - Foreshore and Conservation 441 797 (355) 1,183 1,590 (407)Parks and Recreation 5,090 3,889 1,201 7,233 7,377 (144) 55Off-Street Car Parks 123 107 16 418 446 (28)Drainage Infrastructure 1,099 320 779 2,537 1,657 880Road Infrastructure 5,075 5,169 (94) 6,735 6,999 (264) 120

Total Expense 18,431 14,206 4,224 33,846 27,669 6,177 5,825

RevenueGrants - Capital (880) (1,104) 224 (1,749) (1,914) 164 (755)

Contributions - Cash- Capital (72) (189) 117 (1,699) (403) (1,295) (1,250)

Total Revenue (953) (1,293) 340 (3,448) (2,316) (1,132) (2,005)

Total 17,478 12,913 4,564 30,398 25,353 5,045 3,820

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3.3 BalanceSheet

30.Jun.15


Current assetsCash and cash equivalents 3,746 5,415 4,587 828 4,055 7,737 3,682Trade and other receivables 5,822 18,667 16,009 2,658 4,665 5,064 399Other financial assets 53,000 76,000 53,000 23,000 43,000 53,000 10,000Inventories 124 124 75 49 54 121 67Non current assets classified as held for sale 2,194 - - - - - - Other assets 1,065 454 1,074 (620) 768 828 60Total current assets 65,951 100,660 74,745 25,915 52,542 66,750 14,208

Non-current assetsTrade and other receivables 184 185 123 62 123 163 40Property, infrastructure, plant and equipment 2,562,271 2,564,935 2,293,998 270,937 2,304,142 2,577,472 273,330Financial assets 230 230 230 - 230 230 - Other assets 69 55 69 (14) 69 69 - Total non-current assets 2,562,754 2,565,405 2,294,420 270,985 2,304,564 2,577,934 273,370

Total assets 2,628,705 2,666,065 2,369,165 296,900 2,357,106 2,644,684 287,578

Current liabilitiesTrade and other payables 9,572 5,536 5,169 (367) 7,200 6,614 586Trust funds and deposits 3,517 4,111 3,044 (1,067) 3,099 3,693 (594)Provisions 7,751 7,706 8,848 1,142 8,673 8,217 456Interest bearing loans and borrowings 4,183 93 90 (3) 5,420 5,190 230Income in Advance 438 22,864 21,081 (1,783) - 606 (606)

Total current liabilities 25,461 40,310 38,232 (2,078) 24,392 24,320 72

Non-current liabilitiesProvisions 920 924 1,007 83 1,054 1,120 (66)Interest bearing loans and borrowings 7,320 7,320 7,323 3 3,403 2,132 1,271Total non-current liabilities 8,240 8,244 8,330 86 4,457 3,252 1,205

Total liabilities 33,701 48,554 46,562 (1,992) 28,849 27,572 1,277

Net assets 2,595,004 2,617,511 2,322,603 294,908 2,328,257 2,617,112 288,855

EquityAccumulated surplus 814,359 832,111 828,932 3,179 834,593 834,452 (141)Asset revaluation reserve 1,757,485 1,757,487 1,477,633 279,854 1,477,633 1,757,485 279,852Other reserves 23,160 27,913 16,038 11,875 16,031 25,175 9,144

Total equity 2,595,004 2,617,511 2,322,603 294,908 2,328,257 2,617,112 288,855

Balance Sheet as at 31 Mar 2016

31.Mar.16 Full Financial Year

28

3.4 CashflowStatement

30.Jun.15


Inflows Inflows Inflows Inflows Inflows Inflows Inflows

(Outflows) (Outflows) (Outflows) (Outflows) (Outflows) (Outflows) (Outflows)

Cash flows from operating activitiesReceiptsRates and charges 79,011 71,255 70,314 941 82,246 82,544 298Statutory fees and fines 4,384 3,294 3,142 152 3,865 4,687 822User charges 8,289 6,626 6,307 319 8,743 9,198 455Rental income 3,876 3,644 3,939 (295) 4,115 4,173 58Contributions - monetary 2,833 3,392 758 2,634 2,024 4,327 2,303Grants - Operating 11,534 6,943 7,051 (108) 10,458 9,303 (1,155)Grants - Capital 854 1,104 731 373 2,177 1,914 (263)Interest 1,968 1,969 1,125 844 1,473 2,060 587Trust funds and deposits 428 1,424 111 1,313 148 176 28Other receipts 1,714 1,617 1,289 328 2,734 2,491 (243)Net GST refund 5,367 3,760 3,876 (116) 5,044 4,573 (471)

Employee costs (37,945) (29,470) (28,129) (1,341) (38,732) (39,374) (642)Payments to suppliers (47,633) (35,541) (38,814) 3,273 (50,480) (50,000) 480Net cash provided by (used in) operating activities 34,680 40,017 31,700 8,317 33,815 36,072 2,257

Cash flows from investing activitiesPayments for property, infrastructure, plant & equipment (19,075) (14,214) (18,429) 4,215 (32,380) (30,590) 1,790Proceeds from sale property, infrastructure, plant & equipment 2,560 3,425 - 3,425 - 3,425 3,425Proceeds from term deposit investments (15,000) (23,000) (8,000) (15,000) 2,000 - (2,000)Net cash used in investing activities (31,515) (33,789) (26,429) (7,360) (30,380) (27,165) 3,215

Cash flows from financing activitiesFinance costs (920) (468) (615) 147 (721) (735) (14)Proceeds from borrowings - - - 1,500 - (1,500)Repayment of borrowings (2,174) (4,091) (4,091) - (4,181) (4,181) - Net cash used in financing activities (3,094) (4,559) (4,706) 147 (3,402) (4,916) (1,514)

Net increase(decrease) in cash and cash equivalents 71 1,669 565 1,104 33 3,991 3,958Cash and cash equivalents at the beginning of the period 3,675 3,746 4,022 (276) 4,022 3,746 (276)Cash and cash equivalents at the end of the period 3,746 5,415 4,587 828 4,055 7,737 3,682Term Deposits 53,000 76,000 53,000 23,000 43,000 53,000 10,000

Total cash and cash equivalents at the end of the period 56,746 81,415 57,587 23,828 47,055 60,737 13,682

Unrestricted 24,255 43,458 31,123 12,335 21,339 21,938 599Restricted and Committed funds 32,491 37,957 26,464 11,493 25,716 38,799 13,083

56,746 81,415 57,587 23,828 47,055 60,737 13,682

Cashflow Statement - period ended 31 Mar 2016

31.Mar.16 Full Year

29

Section4–CapitalWorks

The year to date net capital result is favourable to budget by $4.6M. Council is forecast to be net

$5M under budget for capital works at 30 June 2016. Taking into account the impact of $3.8M net of

proposed carry forwards, the capital budget is favourable by $1.2M.

$'000's

15/16 YTD Adjusted Budget

15/16 YTD Actuals Variance

2015/16AdjustedBudget

Current Forecast

Forecast Budget

Variance

Forecast rollover to 2016/17

Variance including rollover

Capital Income 953 1,293 340 3,448 2,316 (1,132) (2,005) 873

Capital Expenditure 18,431 14,205 4,226 33,846 27,669 6,177 5,825 352

Grand Total 17,478 12,912 4,566 30,398 25,354 5,045 3,820 1,225

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4.2 CapitalRevenue (YTDfavourable$340k,Forecastunfavourable$1.13M)

The year to date favourable variance in capital income of $340k is due mainly to:

$217k – Additional allocation received for Roads to Recovery Program.

$150k – Club contribution for Banksia Reserve Pavilion Redevelopment received earlier than anticipated.

The forecast unfavourable variance in capital income of $1.13M is due mainly to:

($2M) – Banksia Reserve Beaumaris Pavilion Redevelopment funding to be received at completion of project in 2016/17.

4.3 CapitalExpenditure(YTDfavourable$4.2M,Forecastfavourable$6.2M)

The forecast favourable variance in capital expenditure of $6.2M is due mainly to:

$3M – Banksia Reserve Beaumaris Pavilion Redevelopment, with the majority of works likely to commence in 2016/17.

$1.2M – Dendy Street Masterplan Implementation, with the majority of works likely to commence in 2016/17.

$555K – Favourable tender results for rectification works on Beach Road Black Rock Outfall Drain.

$364K – Savings expected on Kinane Street Drain works.

$330k – Hurlingham Park Pavilion Redevelopment, with the final elements in the construction likely not to occur until 2016/17.

$250K – New location and new build required for Jetty Road Foreshore Public Toilet due to safety compliance. Construction likely to be carried out in 2016/17.

$250K – Libraries Future Development design works not progressing due to Library Services review in progress in 2015/16. Design for library works to be carried out in future years following service review.

$230K – Favourable tender results on award of Shipston Reserve Sportsground Reconstruction contract.

The following table provides a report on capital projects which are greater than $50K over or under

YTD budget as at 31 March 2016.

Project Title

2015/16 YTD

Adjusted Budget

2015/16 YTD

Actuals

2015/16 YTD

Adjusted Variance

Will the 2015/16 Adjusted Budget be Achieved?

Comments

Hurlingham Park Pavilion Redevelopment

$1,822,273 $929,483 $892,790 No

Works continuing, minor delays may lead to final elements in construction not occurring until 2016/17.

Minor Building Renewals

$460,381 $189,003 $271,378 Yes Works slightly behind schedule.

Sportsground Reconstruction – Shipston Reserve

$1,023,352 $753,342 $270,010 No Savings achieved on the awarding of contract.

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Project Title

2015/16 YTD

Adjusted Budget

2015/16 YTD

Actuals

2015/16 YTD

Adjusted Variance


Comments

Electronic Rostering for Care Workers

$221,630 $19,452 $202,178 No Roll out to be postponed to early 2016/17.

Billson Street Brighton East Drain

$206,736 $7,737 $198,999 Yes

Establishing an access route to the site of the works (in an easement) proving difficult.

Drainage Upgrade Michael Street Beaumaris

$196,399 $6,400 $189,999 Yes Delays due to redesign to avoid Telstra cable.

Sustainability and ESD Initiatives

$240,105 $52,485 $187,620 Yes Works slightly behind schedule.

Hurlingham Park Masterplan Implementation

$237,000 $70,224 $166,776 Yes Construction commenced slightly behind schedule.

Server Room Generator

$171,148 $6,149 $164,999 No

Project not commenced due to competing priorities. Project to be carried forward.

Drainage Upgrade ‐ William Street Brighton

$165,393 $5,394 $159,999 Yes

Minor delays in completion of design documentation. Works to commence in May.

Dendy Park Ground Stabilisation Works

$1,655,916 $1,496,450 $159,466 No

Stages one and two complete. Stage two in maintenance period. Savings identified in contract.

Asbestos Removal Program

$210,105 $76,050 $134,055 No

Full budget will not be spent due to timing of works and availability of buildings to carry out removal.

Install Traffic Signals Weatherall & Reserve Road

$120,000 $1,745 $118,255 Yes

Delays in commencement of works but will be complete by end of year.

Masterplan Implementation‐Dendy Park Brighton East

$130,000 $19,360 $110,640 Yes

Landscaping works awarded and to commence in April. Delays in toilet works due to further consultation with community.

Sportsground Lighting ‐ Brighton Beach Oval

$187,388 $86,844 $100,544 Yes

Delays due to issues with consultation and approvals with authorities. Communications are ongoing.

East Beaumaris Kindergarten Upgrade

$106,736 $6,769 $99,967 No

Strategic review to be undertaken in 2015/16 before progressing with this site. Currently on hold.

Kitchen Renewal Brighton Town Hall

$103,369 $8,289 $95,080 Yes Works scheduled to be carried out in April.

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Project Title

2015/16 YTD

Adjusted Budget

2015/16 YTD

Actuals

2015/16 YTD

Adjusted Variance


Comments

Shared Paths Emergency Works

$105,055 $24,448 $80,607 No

Further community engagement to be undertaken before remaining Bay Trail safety risks are addressed.

External Storage Room near North Rd Pavilion Café

$93,030 $13,770 $79,260 Yes

Delays in finalising design and awaiting permits. Construction will commence in April.

Active Transport Facility Improvement Program

$99,801 $23,080 $76,721 Yes Currently out for quote and closing early April.

Council Public Information, Signage & Character Program

$100,000 $24,029 $75,971 Yes Brief for strategy out for tender in March.

Electrical Compliance and Renewal Program

$84,209 $10,710 $73,499 Yes Unscheduled works as required.

Drainage Upgrade ‐ Waterloo Street Brighton

$80,731 $11,052 $69,679 Yes Construction to commence in May.

Elsternwick Park (Nth) Master Plan ‐Detailed Design

$75,000 $5,930 $69,070 No

Change in Masterplan has led to full budget not being required in 2015/16.

Hanby Street Easement Drain

$72,356 $3,356 $69,000 Yes

Tender award in progress. Work will commence early May. Minor delays in completion of design documentation.

Sportsground Lighting ‐ Peterson Reserve (East & West)

$237,748 $172,638 $65,110 No Favourable tender results on lighting contract.

Activity Centre Masterplan ‐ Beaumaris Concourse

$95,000 $30,271 $64,729 No

Draft Plan to be prepared in October 2016. Final Masterplan to be prepared in January 2017. Carry forward required to carry out works in 2016/17.

Improvement of Website

$100,000 $36,900 $63,100 No

Tender award in March 2016. Expect to be complete in September 2016.

Dendy Park Soccer / Cricket Pavilion

$155,055 $99,483 $55,572 Yes Detailed design to be completed in April. Works

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Project Title

2015/16 YTD

Adjusted Budget

2015/16 YTD

Actuals

2015/16 YTD

Adjusted Variance


Comments

Redevelopment slightly behind schedule.

Kinane Street Community Water Management

$57,865 $2,866 $54,999 Yes Works progressing behind schedule.

Dendy Street Beach Masterplan Implementation

$180,536 $128,702 $51,834 No

Majority of works likely not to commence in 2015/16. Rollover into 2016/17 is anticipated.

Building Accessibility Compliance Program

$83,504 $32,652 $50,852 Yes Majority of Projects expected to commence in April.

Netball Indoor Court ‐ Detailed Design

$64,969 $14,270 $50,699 Yes

Concept design process for netball and athletics commenced. RFQ closed in March.

Customer Request Management System (CRMS) Software

$0 $78,916 ($78,916) Unbudgeted

Prior year project delayed and rolled into 2015/16 for completion in August 2015. Overspend due to additional training and resources required.

Banksia Reserve Beaumaris Pavilion Redevelopment

$100,000 $180,455 ($80,455) No Design works complete.

Kerb & Channel Replacement Program

$555,000 $646,633 ($91,633) Yes Program complete.

Jetty Road Sandringham Pedestrian Access

$79,764 $223,256 ($143,492) Yes

More expensive option adopted, budget was set on the cheaper option.

Road Reconstruction Program

$525,216 $690,121 ($164,905) Yes Program completed ahead of schedule.

North Road Jetty Storm Damage Reconstruction

$0 $172,176 ($172,176) Unbudgeted

Unbudgeted expenditure to be funded from unbudgeted income.

Half Moon Bay Boat Ramp Reconstruction

$0 $177,062 ($177,062) Unbudgeted

Unbudgeted expenditure to be funded from unbudgeted income.

Bayside Community Nursery Revitalisation

$245,774 $622,131 ($376,357) Yes Works are currently ahead of schedule.

Annual Road Reseal & Resheet Program

$1,568,905 $1,977,655 ($408,750) Yes Additional external funding to offset additional spend.

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4.4 CapitalBudgetStatus

For 2015/16 there are 172 capital projects to be delivered, with 35 of these completed at the end of

the third quarter, 114 projects in progress, 5 projects under review and 5 not yet started.

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Section5–DivisionalOverview

5.1 ExecutiveOffice

Departments include:

Communications and Customer Service

Better Place Implementation Team

Key Highlights

There have been 470,545 unique page views on the website this quarter and the top ten

pages of interest were:

Home page

Your Library

Jobs at Council

Carols in the Park

Events Calendar

Contact Us

Hard Waste Collection

Building and Planning Application Register

Dog of Leash Areas

Building and Planning

This quarter the Customer Service department has responded to 46,295 customer enquiries via phone and 2,398 via the website. We have also served 5,209 customers at the front counter during the October to December period.

The Better Place Implementation team was established, bringing together organisational services that support improved capability, performance and results, with a focus on finalising and embedding the Better Place Approach

Over 80% of Departments completed their first Capability Assessment, providing a baseline measure and priorities for capability improvements over the next 6 months

The Library Services Strategic Service Review commenced, the final of four service reviews of the 2015/16 program

Commenced a full review of all Council and organisational policies and strategies to improve the relevance, currency, effectiveness and performance of Council’s policy and strategy framework

Key Challenges

Completing the Organisational Excellence Strategy (OES) in time to inform the 16/17 Departmental Planning process is a key challenge, particularly without the finalisation of the Better Place Approach and supporting strategy moving forward. Key actions for the OES have been identified for communication with key Departments.

Long term approach in improving the capability and accountability for performance measurement and reporting

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5.2 CityPlanningandAmenity

Services provided by this division include:

Amenity Protection

Development Services (Building Surveying and Statutory Planning)

Urban Strategy (Economic Development and Strategic Planning)

Key Highlights

Panel report for Amendment C139, Bayside Drainage DCP was positive and recommended

approval of the Amendment.

Implementation of the Statutory Planning Service Improvement Plan including new format

Committee and delegate reports introduced and revised standard conditions adopted by

Council.

Availability on Council’s website of planning permits and endorsed plans.

Developed a new resource to be distributed to local businesses and residential properties to

advise them of the need (under the Local Law) to have a visible property number on the

premises.

Key Challenges

Impact of unscheduled work in work program and project delivery. (Preparation of various

submissions to State Government Reviews and Processes, State Infrastructure projects –

Southland Railway Station and Railway crossings, extended consultative processes – Willis

Street)

Maintaining improved productivity whilst staff engage in service improvement initiatives.

5.3 CorporateServices


Governance and Performance Reporting

Finance

Commercial Services

Information Services

Recreation & Events

Key Highlights

Launched the Maternal and Child Health online booking system ( a Victorian first).

Sale of two bathing boxes for $285,000 and $280,000 plus GST.

Kamesburgh lease extension for 25 years and threefold increase in rental return to Council

Bright n Sandy Festival – extended 2 hours until 7.30pm (at no additional cost to Council)

very popular with strong dinner crowd. 8,500 attendees – very high attendees and vendor

satisfaction ratings.

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Annual Sports Club Breakfast – held at Royal Melbourne Golf Club with 120 sports club

volunteers in attendance.

Respect, Protect, Connect pilot program implemented in 3 schools across Bayside, Glen Eira

and Kingston. Program aims to support a decrease the prevalence of family violence

Australia Day Citizenship and Award Ceremony

A new online payment form for Green Bins. This model will be used as a template for other

up‐front payment forms online.

Key Challenges

Increased focus and requirement for governance support in the lead up to the election

Trialling and selecting new mobile computers to replace 500 council computers that will

meet business needs at the best value.

Continuing to encourage cross organisational cooperation with performance reporting, risk

management, procurement compliance, budget management, payroll deadlines and Council

report timeframes

Decision on remaining in the Mutual Schemes for insurance with confirmed premiums not

available until late May/June for June 30 renewal.

Increased number of claims against Council in quarter

Finalising development of issues paper for Leasing Policy

Stakeholder management of Brighton Beach redevelopment, Elsternwick Park Oval no 1, and

Beaumaris Sport Club development

5.4 EnvironmentandInfrastructure


Infrastructure Assets

City Works

Environmental Sustainability and Open Space

Key Highlights

Stage 1 of the community engagement for Beaumaris Concourse Streetscape Master Plan was well attended by community members

The final stage of community engagement activities for the draft Sandringham Village Master Plan has been completed

The updated Buildings Asset Management Plan was completed and released for public exhibition

Completed a review of Council’s current output of Carbon emissions and developed an action plan to achieve carbon neutrality for Council operations by 2020

Completion of Shipston Reserve Sportsground works and the Club is now using the facilities

Draft 2016/17 capital program has been completed

Construction at the Bayside Community Nursery has commenced

The Banksia Pavilion Design is being finalised

Secured Melbourne Water funding for the removal of stormwater discharge for Dendy Beach Master Plan and for a Water Sensitive Urban Design Officer for a 12 month period

Community engagement process for Dendy Street Beach successfully completed

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Key Challenges

Following the refusal of a planning permit to remove trees in Little Brighton Reserve, an

alternative shared path design or other solution is being investigated

A Residents Group opposing bus route options presented in the draft Sandringham Village

Master Plan led a vocal campaign during March

Some capital projects slightly behind schedule

5.5 CommunityServices


Family Services

Aged and Disability Services

Libraries and Culture

Human Resources

Key Highlights

Beaumaris Seniors Centre and Hampton Seniors Centre both received upgrades to its

facilities including the installation of a disabled toilet.

Successful launch of the Maternal and Child Health Online Booking Service. This will lead to a

more streamlined and efficient system for Council and parents.

The Youth Resilience Survey (YRS) – 12 Primary and 6 Primary schools have signed up to

conduct the YRS over the next three years. The survey results are analysed to measure

resilience among young people.

The Prue Acton Exhibition at the Gallery was well received, contributing to a total

attendance at the Gallery of 1,604 since opening on 13 February.

Key Challenges

There was a high proportion of high risk referrals received in the last quarter. Having clients

that are high risk reduces the capacity of support that the Youth Counsellors are able to

provide.

Balancing the demand by Artists for longer exhibition time with the high number of artists

wishing to use the Gallery.

Balancing the competing needs of library users with the space available at some branches.

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Section6–CommunityEngagementCouncil recognises that decision making is enhanced, services are better delivered and that strategies and policies are likely to result in better outcomes for

the community when the community is involved in the decision making process. Council is committed to ensuring that all views are considered through

inclusive deliberation and active involvement from the community. Within Council Plan, Council is committed to ensuring our approaches to community

engagement are appropriate, ongoing, open and collaborative and all key consultation and engagement activities will recognise and respect the diversity of

our community including culture, gender, age and ability. Community engagement is orientated around the IAP2 Spectrum of Participation that identifies

five levels of “public participation” (or community engagement) related to the impact of the proposal under consideration.

The following consultation activities were undertaken throughout January – March 2016

Project Title Who was consulted (diversity, age, gender)

Tools / Technique of engagement

Playground Improvement Plan ‐ Playground Testers Program Families with young children across Bayside Online and face to face

Dendy Street Beach Pavilion General Bayside community Online and face to face

Willis Street Precinct Hampton Local residential community, traders and community organisations

Face to face

Dendy Village Streetscape Improvement Works Local residential and business community Face to face

Sandringham Village Masterplan General Bayside community Online and face to face

Blackrock Foreshore Masterplan General Bayside community Online and face to face

Beaumaris Concourse Streetscape Masterplan Local residential and business community Online and face to face

Landscape Guidelines Professionals within the industry, arborists, landscape designers and current applicants

Online and face to face

Footpath Treatment Policy General Bayside community Online

q3 performance report to council 2015-16 - vic...projects. underlying result – sufficient...

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