quarterly financial report march 2006 - … · quarterly financial report march 2006 ... imbalances...

BRISBANE CITY COUNCIL

QUARTERLY FINANCIAL REPORT

MARCH 2006

Prepared by Corporate Finance, Corporate Services Division

Dedicated to a better Brisbane

Section 1

4

8

Section 2

19

2.1 Organisational Capability 24

2.2 City Governance 28

2.3 Economic Development 34

2.4 Information Technology 38

2.5 Customer Focus 42

2.6 Your Brisbane 46

2.7 Healthy and Sustainable Brisbane 52

2.8 Future Brisbane 56

2.9 Moving Brisbane 60

2.10 Environment and Parks 66

2.11 Healthy Waterways 72

2.12 Water Supply and Sewerage 78

Section 3

Brisbane Water 84

Brisbane Transport 90

Brisbane City Works 96

102


Council Financial Statements

COUNCIL RESULTS

Overview of the Financial Statements

QUARTERLY FINANCIAL REPORT

PERIOD ENDED MARCH 2006

TABLE OF CONTENTS

Special Notes

City Business

BUSINESS UNIT RESULTS

CORE SERVICES RESULTS

Core Services Program Summaries

SPECIAL NOTES

� This is a Special Purpose Financial Report.

� This report has been prepared to show the approved budget against the year to date financial position. In addition, this report gives an overview of the commercial operations and financial well-being of the Council’s business units.

� This report shows the financial performance of Council in three separate sections:

Section 1 - Council Results (including the Business Units)

Section 2 - Core Services Results (Council Results excluding Business Unit Results)

Section 3 - Business Unit Results

� This report has been prepared using figures from the accounting systems, which closed on 24 March 2006.

� Australian equivalents to International Financial Reporting Standards (AIFRS) are effective from 1 July 2005 and have been adopted by Council. The March 2006 Quarterly Report includes adjustments as a result of conversion to AIFRS.

� Detailed explanations are contained in this report for activity variances more than $100,000 plus any variance explanations that are considered appropriate by the Divisional Managers.

� The Appropriations and Reserve Transfers Statement reflects the required appropriation for the reduction in debt principal and for the acquisition of property, plant and equipment funded from revenues raised for the period to March 2006.

� The Revised Budget approved on 6th December 2005 has been used to determine the activity, outcome, program variances and the Business Unit report submissions for this Quarterly Report.

� The City Business Report in section 3 includes all activities of the business unit. However, some City Business activities operate in programs other than the Business Group and Other Services program. Explanations for these variances are reported in Section 2.

�

Council level because of internal trading imbalances. These imbalances are addressed through management of the budget at a divisional level. For the purpose of the Quarterly Report, imbalances are adjusted in the budgeted Income Statement.

� Permanent vs timing difference classification:

Permanent and timing differences are classified with reference to the budget position for the total activity.

A permanent difference is defined as a current variance that:

- is not offset by other variances within the same activity budget, and - will result in a periodic budget review submission.

For the purpose of the Quarterly Financial Report, a permanent difference will only relate to the total activity budget.

Differences not expected to give rise to permanent differences at the end of the financial year are classified as timing differences.

All differences in the final Quarterly Financial Report for each year are considered permanent.

The budget by Program and the budget by Income Statement may not agree at a whole of

3



SECTION 1

COUNCIL

RESULTS

4

Section 1

BRISBANE CITY COUNCILOverview of the Financial Statements

For the Period Ended March 2006

Ratios

Council’s performance at 24 March 2006 against the key financial ratios and targets:

Target YTD Actual 24/03/2006

Target met Y/E Actual 24/06/2005

>1 1.18 � 0.95>3 11.87 � 11.52

<33% 6.70% � 7.80%<150% 49.30% � 56.80%

>2 3.32 � 2.82<15 yrs 13.95 yrs � 14.1 yrs

These ratios are indicative of effective financial management. Results within targets indicate that financial risks are being managed effectively. Changes between periods are likely to reflect Council’s activities.

The working capital ratio (current assets/current liabilities) provides an indication of Council’s ability to fund current liabilities. Council also has immediate access to funds of $165 million (2005: $165 million) held in the repay and redraw facility. This is classified as an offset against non-current liabilities. Current assets plus the repay and redraw facility compared to current liabilities results ina ratio of 1.76 to 1 (2005: 1.51 to 1).

Summary of Operations and Application of Capital Funding

Revenue - Total revenue for the period ended March 2006 has a net favourable variance of$5,518,782 (0.48%). This includes $13,985,000 which has been identified as permanent. The offsetting unfavourable difference relates to timing variances.

Favourable:Higher than anticipated revenue arising from:� Dividend income from the QIC Self Managed Insurance Investment.

� Rates received in advance and imputed income tax from SEQ Water Corporation.

Unfavourable:Lower than anticipated revenue arising from:� Higher than anticipated activity associated with decommissioning of water and sewerage assets.

� Lower than anticipated water consumption resulting from restrictions.

� Timing of receipt of State Government Subsidies towards the Wastewater Treatment Upgrade projects.

� Lower than anticipated receipt of developer contributed assets.

Ratio

Current assets/current liabilities

Net debt/total revenue

Average debt maturity

Total assets/total liabilitiesDebt servicing/total revenue

Interest coverage

5

Section 1

Overview of the Financial Statements


Overview (Continued)

Summary of Operations and Application of Capital Funding (Continued)

Expenses - Total operating expenditure for the period ended March 2006 has a favourable variance of $11,367,030 (1.07%). Of this amount, $9,701,000 has been identified as permanent. The remainder relates to timing variances or a combination of permanent and timing variances.

Favourable:Lower than anticipated expenses arising from:� Timing of costs associated with the HRIS project.

� Lower than anticipated contribution to the defined benefit Superannuation Fund .

� Lower than anticipated expenditure on the Brisbane Square - Library Fitout Project.

� Lower than anticipated expenditure on the Opportunities for All Service Project.

� Later than anticipated consultancy costs for the Brisbane Square Project.

� Later than anticipated expenditure on the Newstead Riverpark.

Unfavourable:Higher than anticipated expenses arising from:� Depreciation charges due to revaluation of assets.

Capital - Total capital expenditure for the period ended March 2006 is under budget by

$75,808,805 (19.97%). Of this amount, $51,491,000 has been identified as permanent. The remainder relates to timing variances or a combination of permanent and timing variances.

Under Budget:� Later than anticipated progress on projects

� Reclassifications from operating expenditure to capital expenditure

� Later than anticipated renewal of fleet contracts

Balance Sheet

Since March 2005 Council’s total equity (wealth) has increased from $13.1 billion to $13.7 billionrepresenting an increase of $0.568 billion. This is mainly due to increases in the Asset RevaluationReserve of $410 million (mainly due to revaluations of land and infrastructure).

Cash and deposits have increased by $39 million to $154 million since March 2005. Councilcontinues to closely monitor its cash flow position on a daily basis and using monthly forecasts.


6

Section 1

BRISBANE CITY COUNCILOverview of the Financial Statements


Overview (Continued)

Balance Sheet (continued)

Trade and other receivables have increased by $11 million and accrued revenue has decreased by$8 million which are mainly due to changes in the levying and billing of commercial customers as a result of the implementation of the Billing Optimisation Project.

Non-current assets classified as held for sale have increased by $37 million since March 2005. This is mainly due to the reclassification of the Brisbane Administration Centre as a current asset, which is held for sale within 12 months.

Property, plant and equipment have increased by $514 million since March 2005. This relatesmainly to the asset revaluation process, in particular land and infrastructure assets. Capital work in progress has decreased by $24 million due to a decrease in capital expenditure for major projects.

Intangible assets have increased by $17 million mainly due to capitalising the Human Resource Information System (HRIS) payroll system.

Trade and other payables have increased $23 million. This includes $48 million relating to thereclassification of Annual Leave and Leave in Lieu to payables in accordance with AIFRS.

Interest bearing liabilities (current and non-current) have decreased by $20 million overall. This is mainly due to an increase in funds available within the repay and redraw facility. To minimise finance costs the facility is offset against the balance of non-current debt with QTC.

Provisions (current and non-current) have increased by $9 million which includes an offsetting reduction of $48 million (refer to trade and other payables). The increase is mainly attributable to the annual actuarial assessment of long service leave entitilements.

Statement of Capital Funding

This statement indicates that for the period ended March 2006, $73 million has been appropriated from the increase in operating capability to fund asset acquisitions and principal loan repayments.

7

Section 1

BRISBANE CITY COUNCILCouncil Summary of Operations and Application of Capital Funding

For the Period Ended Actual to

DateApproved

YTD Budget

Variance Over(Under)

to DateMarch 2006 $ $ $

PROGRAMS

RevenueOrganisational Capability 2,864,120 2,615,932 248,188City Governance 428,102,310 416,504,527 11,597,783Economic Development 8,171,753 8,043,610 128,143Information Technology 437,079 345,855 91,224Customer Focus 259,387 213,097 46,290Your Brisbane 9,379,059 9,885,848 (506,789)Healthy and Sustainable Brisbane 67,580,986 67,062,491 518,495Future Brisbane 27,542,844 28,810,212 (1,267,368)Moving Brisbane 63,975,485 61,717,250 2,258,235Environment and Parks 20,362,570 21,040,636 (678,066)Healthy Waterways 20,211,921 17,316,463 2,895,458Water Supply and Sewerage 73,982,092 78,511,499 (4,529,407)Businesses Group and Other Services 436,369,617 441,653,020 (5,283,404)

1,159,239,222 1,153,720,440 5,518,782

ExpensesOrganisational Capability 29,545,076 35,741,879 (6,196,803)City Governance 96,640,677 100,429,384 (3,788,707)Economic Development 16,920,434 17,578,054 (657,620)Information Technology 4,996,772 5,155,944 (159,172)Customer Focus 18,103,932 19,206,921 (1,102,989)Your Brisbane 66,816,544 72,592,264 (5,775,720)Healthy and Sustainable Brisbane 76,709,033 76,626,311 82,721Future Brisbane 48,492,867 43,841,739 4,651,128Moving Brisbane 239,717,926 240,212,617 (494,691)Environment and Parks 55,690,867 59,477,301 (3,786,434)Healthy Waterways 50,158,963 48,661,454 1,497,509Water Supply and Sewerage (61,950,226) (67,139,712) 5,189,486Businesses Group and Other Services 407,175,059 408,000,797 (825,738)

1,049,017,923 1,060,384,953 (11,367,030)

INCREASE IN OPERATING CAPABILITY 110,221,299 93,335,487 16,885,812

APPLICATION OF CAPITAL FUNDING (Acquisition of non-current assets)

Organisational Capability 43,309 0 43,309City Governance 23,251,515 33,824,081 (10,572,566)Economic Development 584,469 607,000 (22,531)Information Technology 2,113,662 6,041,554 (3,927,892)Customer Focus 0 (60,000) 60,000Your Brisbane 1,886,375 3,359,017 (1,472,642)Healthy and Sustainable Brisbane 3,101,597 1,675,000 1,426,597Future Brisbane 800,512 8,091,100 (7,290,588)Moving Brisbane 141,373,188 183,875,159 (42,501,971)Environment and Parks 12,709,008 17,599,220 (4,890,212)Healthy Waterways 28,372,550 28,251,759 120,791Water Supply and Sewerage 87,030,821 89,071,306 (2,040,485)Businesses Group and Other Services 2,603,734 7,344,348 (4,740,614)

303,870,739 379,679,544 (75,808,805)

Note: Total revenues and expenses by program differ from those in the Statement of Financial Performance because expenses by program includes discounts and pensioner remissions whereas in the Statement of Financial Performance these are deducted from rates and utility charges revenue. Program expenditure also includes internal charges and recoveries between programs.

8

For the Period EndedActual

to Date

Anticipated Position

June 2006Actual

Mar 2005$000 $000 $000

RevenuesRates and utility charges 717,024 980,060 704,105 Less discount and pensioner remissions (31,540) (42,094) (31,727)

685,484 937,966 672,378

85,207 117,754 85,369 Public transport 90,533 118,393 81,205 Interest 9,147 9,694 8,393 Other 83,780 96,359 78,398

268,667 342,200 253,365

Donations 54,114 52,810 38,631 Contributions 75,369 97,110 42,641 Subsidies and grants 66,239 109,463 64,906

195,722 259,383 146,178Total Revenues from Ordinary Activities 1,149,873 1,539,549 1,071,921

ExpensesEmployee costs 395,193 529,067 382,370 Materials and services costs 615,383 981,152 593,132 Depreciation and amortisation 227,618 293,755 194,816 Finance costs 47,532 67,016 51,806 Loss on disposals of property, plant and equipment 26,080 26,149 15,253 Other 31,717 55,798 29,054

1,343,523 1,952,937 1,266,431Less expenses capitalised (303,871) (520,646) (306,375)Total Expenses from Ordinary Activities 1,039,652 1,432,291 960,056

INCREASE IN OPERATING CAPABILITY 110,221 107,258 111,865

BRISBANE CITY COUNCILIncome Statement

Fees and charges

March 2006

9

Actual to Date


June 2006Actual

Mar 2005March 2006 $000 $000 $000

Increase in operating capability 110,221 107,258 111,865

Appropriations Appropriation (to)/from the debt funding account (29,390) (39,740) (36,526) Appropriation (to)/from the asset acquisition account (43,745) (87,678) (85,925)

(73,135) (127,418) (122,451)

Current Year (Deficit)/Surplus after Appropriations 37,086 (20,160) (10,586)

70,147 70,147 97,439 5,052 - 10,925

Accumulated Surplus Available for Transfer 112,285 49,987 97,778

Transfers (to)/from Capital and Reserves

Transfer (to)/from Capital

(5,052) 0 (10,925)

Transfers (to)/from Other Reserves

Transfer (to)/from the insurance reserve (2,466) 21 (3,433)

Transfer (to)/from the Valley Mall general reserve (352) (378) -

Transfer (to)/from the Valley Mall asset replacement reserve 202 176 -

Transfer (to)/from Queen Street Mall general reserve (104) 168 -

Transfer (to)/from the Queen St Mall asset replacement reserve 627 (217) -

Transfer (to)/from the bushland preservation reserve 790 (488) -

Transfer (to)/from the employee leave entitlements reserve 0 - 11,724

Transfer (to)/from emergent expenditure and inflation provision reserve 0 4,010 -

Transfer (to)/from the infrastructure reserve 0 (47,055) -

Transfer (to)/from the Bayside Regional Park Acquisition 225 225 -

ACCUMULATED SURPLUS AT PERIOD END 106,155 6,449 95,144

BRISBANE CITY COUNCILAppropriations and Reserve Transfers Statement

Accumulated Surplus at Beginning of YearAdjustment to previous recognition of non-current assets

For the Period Ended

Adjustment to previous recognition of non-current assets

10

Actual to Date


June 2006Actual

Mar 2005March 2006 $000 $000 $000

AssetsCurrent assets Cash and cash equivalents 154,207 263,381 115,298 Trade and other receivables 69,581 61,063 59,052

14,769 14,261 13,030 Other 57,021 91,875 62,763

295,578 430,580 250,143 Assets classified as held for sale 37,000 - 37,000

332,578 430,580 287,143

Non-current assets Receivables 9,873 9,871 9,871 Other financial assets 121,016 118,799 117,906 Property, plant and equipment 13,878,200 13,793,108 13,364,388 Investment properties - - - Capital work in progress 551,140 543,121 574,880 Intangible assets 37,851 26,733 21,219

14,598,080 14,491,632 14,088,264

Total Assets 14,930,658 14,922,212 14,338,407

LiabilitiesCurrent liabilities Trade and other payables 219,799 221,799 196,340 Interest-bearing liabilities 13,631 43,678 17,812 Provisions 14,555 13,041 14,916 Other 34,017 22,114 19,221

282,002 300,632 248,289

Non-current liabilities Interest-bearing liabilities 896,885 1,081,490 912,279 Provisions 76,569 78,197 66,761 Defined benefit plan liability 1,620 1,620 4,154 Other 850 850 2,258

975,924 1,162,157 985,452

Total Liabilities 1,257,926 1,462,789 1,233,741

NET COMMUNITY ASSETS 13,672,732 13,459,423 13,104,666

Community EquityCity capital and capital accounts 8,612,555 8,661,786 8,494,926 Asset revaluation reserve 4,844,654 4,639,855 4,434,037 Other reserves 109,368 151,333 80,559 Accumulated surplus 106,155 6,449 95,144

TOTAL COMMUNITY EQUITY 13,672,732 13,459,423 13,104,666

BRISBANE CITY COUNCILBalance Sheet

Inventories


11

TotalAccumulated

Surplus

City Capital and Capital

Accounts

Asset Revaluation

ReserveOther

ReservesMarch 2006 $000 $000 $000 $000 $000

Balance at beginning of year 13,352,165 70,147 8,534,368 4,639,855 107,795

Gains/(Losses) taken to equity (986) - - - (986) Transferred to profit for the period (ineffective) 730 - - - 730 Transferred to the initial carrying amount of hedged items (P&L) 815 - - - 815 Transferred to the initial carrying amount of hedged items (Capital) (64) (64)

204,799 - - 204,799 -

5,052 5,052 - - -

(5,052) 5,052 -

13,562,511 70,147 8,539,420 4,844,654 108,290 Increase in operating capability 110,221 110,221 - - -Total income / expense for the year 13,672,732 180,368 8,539,420 4,844,654 108,290 Transfer to capital accounts and reserves - (74,547) 73,135 - 1,412 Transfer from capital accounts and reserves - 334 - - (334)

Actual to Date 13,672,732 106,155 8,612,555 4,844,654 109,368

TotalAccumulated

Surplus

City Capital and Capital

Accounts

Asset Revaluation

ReserveOther

ReservesJune 2006 $000 $000 $000 $000 $000

Balance at beginning of year 13,352,165 70,147 8,534,368 4,639,855 107,795

Gains/(Losses) taken to equity - - - - - Transferred to profit for the period - - - - - Trasferred to the initial carrying amount of hedged item - - - - -

- -

- - - - -

- - - - -

13,352,165 70,147 8,534,368 4,639,855 107,795 Increase in operating capability 107,258 107,258 - - -Total income / expense for the year 13,459,423 177,405 8,534,368 4,639,855 107,795 Transfers to Capital Accounts and Reserves:Transfer to capital accounts and reserves - (215,937) 127,418 - 88,519 Transfer from capital accounts and reserves - 44,981 - - (44,981)

Anticipated Position June 2006 13,459,423 6,449 8,661,786 4,639,855 151,333

BRISBANE CITY COUNCILStatement of Changes in Equity

Increase/(decrease) in asset revaluation reserveAdjustment to previous recognition of non-current assetsTransfer between capital accounts and accumulated surplusTotal income and expense for the year recognised directly in equity


Cash flow hedges:

For the Anticipated Position

Cash flow hedges:

Increase/(decrease) in asset revaluation reserveAdjustment to previous recognition of non-current assetsTransfer between capital accounts and accumulated surplusTotal income and expense for the year recognised directly in equity

12

Actual to Date


June 2006Actual

Mar 2005March 2006 $000 $000 $000

Cash Flows from Operating ActivitiesReceipts Net rates and utility charges 694,605 937,307 671,126 Fares, fees and charges 192,544 235,217 188,916

8,537 9,694 8,059 Other 150,054 192,123 108,996

1,045,740 1,374,341 977,097

Payments Employee costs 393,140 526,916 382,570 Materials and services costs 673,026 976,908 642,356 Finance costs 47,532 67,016 51,807 Other 31,647 55,798 28,989

1,145,345 1,626,638 1,105,722 Less expenses capitalised (303,871) (520,646) (306,375)

841,474 1,105,992 799,347

GST received from Australian Taxation Office 39,315 - 38,618

Net Cash Generated by Operating Activities 243,581 268,349 216,368

Cash Flows from Investing ActivitiesProceeds from disposal of property, plant and equipment 6,429 53,213 10,395 Payments for property, plant, equipment and work in progress (249,759) (467,836) (267,800)Investment with Queensland Investment Corporation managed fund 2,550 - (945)Investment in SRWP Pty Ltd (378) - -Net Cash Used in Investing Activities (241,158) (414,623) (258,350)

Cash Flows from Financing ActivitiesTransfers to QTC Repay and Redraw Facility - 165,000 -

- - -Proceeds from borrowings - 60,000 -Repayment of borrowings (29,352) (39,740) (36,492)Repayment of finance lease (38) - (35)

(29,390) 185,260 (36,527)

Subsidies and grants 66,239 109,463 64,906 Net Cash Provided by Government Funding 66,239 109,463 64,906

NET INCREASE/(DECREASE) IN CASH HELD 39,272 148,449 (13,603)Cash at beginning of year 114,935 114,932 128,901

CASH AT PERIOD END 154,207 263,381 115,298

Transfers from QTC Repay and Redraw Facility

Net Cash Used in Financing Activities

Cash Flows from Government Funding

BRISBANE CITY COUNCILCash Flow Statement


Interest

13

Actual to Date

Actual Mar 2005

March 2006 $000 $000

Note to the Statement of Cash Flows

110,221 111,865

Revenue attributable to government funding (66,239) (64,906)

Depreciation and amortisation 227,619 194,816 Non-cash donations (54,114) (38,624)Increase/(decrease) in provision for doubtful debts (552) 1,577 Increase/(decrease) in provision for slow moving and obsolete stores (26) (236)Revaluation of inventory to current cost - -Net (gain)/loss on disposal of property, plant and equipment 26,080 15,253 Property, plant and equipment donated to controlled entitiy - -Assets previously expensed now capitalised - (2,164)Revaluation decrement/(reversal) on ordinary activities - -

199,007 170,622 Investing ActivitiesReinvestment of QIC managed fund dividends (2,557) (3,432)Net (gain)/loss on disposal of non-current investments - -

(2,557) (3,432)

Changes in Assets and Liabilities(Increase)/decrease in rates and utility charges receivable 9,121 (1,252)(Increase)/decrease in other debtors (3,675) 2,037 (Increase)/decrease in other assets (18,802) (3,524)Increase/(decrease)in creditors and accruals 2,712 6,257 Increase/(decrease) in other liabilities 11,903 (1,006)Increase/(decrease) in provision for employee benefits 1,890 (293)

3,149 2,219

Net Cash Generated by Operating Activities 243,581 216,368

Non-cash Items Included in Changes to Net Assets

Cash Flow Statement (continued)


RECONCILIATION OF THE INCREASE IN OPERATING CAPABILITY

Increase in Operating Capability


14

Actual to Date


June 2006Actual

Mar 2005March 2006 $000 $000 $000

Sources of Capital FundingAppropriations (to)/from revenue

Donated assets 54,114 52,810 38,625 104,225 174,985 71,593 (85,205) (100,377) 12,233 73,134 127,418 122,451

Other:Loan borrowings - drawn - 60,000 -

- - -227,618 293,755 194,816

Carrying amount of property, plant and equipment disposed - - -32,509 79,213 25,634

Carrying amount of non-current investments disposed 32,509 - 25,634 260,127 432,968 220,450

333,261 560,386 342,901

Applications of Capital FundingNon-current assets

Land - - - Buildings 20,265 18,144 12,893

Plant and equipment 976 28,182 5,932 Infrastructure 31,123 110,462 37,569 Intangibles 224,944 359,681 50,558 Other assets 17,149 - 6,288

294,457 516,469 113,240 Increase/(decrease) in capital work in progress 295,852 520,646 115,602 Non-current asset acquisitions 590,309 1,037,115 228,842

Principal loan repaymentsFinance lease liabilities - - -Queensland Treasury Corporation 38 - 34

38 - 34

590,347 1,037,115 228,876

Revenue/(excess revenue) raised to fund non-current asset

Carrying amount of property, plant and equipment donated to

Capital contributions, grants and subsidies for non-current Excess of capital

Appropriations to the asset acquisition account and debt funding

Revenue raised to fund depreciation and amortisation charges

BRISBANE CITY COUNCILStatement of Capital Funding


15

Section 1

BRISBANE CITY COUNCILCouncil Schedule of Application of Capital Funding by Sub-Program

For the Period Ended Actual to Date

Approved Annual Budget

2005/06% of Budget

ExpendedMarch 2006 $ $ $

ORGANISATIONAL CAPABILITY

Managing Councils Business 43,309 0 0.00%Future Focused & Flexible Organisation 0 0 0.00%Effective Partnerships and Communication 0 0 0.00%Great Employer Clever Workforce 0 0 0.00%

TOTAL ORGANISATIONAL CAPABILITY 43,309 0 0.00%

CITY GOVERNANCE

Transparent and Open Government 0 0 0.00%Council Close to the People 0 0 0.00%Regional and International Activities 0 0 0.00%Financial Strength 16,966,351 23,651,000 71.74%Responsible Money Management 6,285,164 19,577,000 32.10%Risk Management 0 0 0.00%

TOTAL CITY GOVERNANCE 23,251,515 43,228,000 53.79%

ECONOMIC DEVELOPMENT

Brisbane Business 0 0 0.00%Positioning Brisbane 584,469 607,000 96.29%

TOTAL ECONOMIC DEVELOPMENT 584,469 607,000 96.29%

CUSTOMER FOCUS

Improved Responsiveness 0 0 0.00%Inclusive and Accessible 0 0 0.00%Efficiency and Effectiveness 0 0 0.00%Consistency Simplicity and Transparency 0 118,000 0.00%Skilled and Experienced Staff 0 0 0.00%

TOTAL CUSTOMER FOCUS 0 118,000 0.00%

YOUR BRISBANE

Arts and Culture 1,748,901 2,370,000 73.79%Brisbane’s Libraries 100,294 1,337,000 7.50%Sports & Recreation 37,180 1,304,000 2.85%Opportunities for All 0 0 0.00%

TOTAL YOUR BRISBANE 1,886,375 5,011,000 37.64%

HEALTHY AND SUSTAINABLE BRISBANE

Managing Brisbane’s Waste 0 0 0.00%Sustainability 2,991,087 4,900,000 61.04%Public Health 0 0 0.00%Brisbane’s Cemeteries and Crematoria 0 0 0.00%Citizen’s Security 110,510 20,000 552.55%

TOTAL HEALTHY AND SUSTAINABLE BRISBANE 3,101,597 4,920,000 63.04%

Negative balances arise from reclassifications of prior period expenditure from capital to expense.

Progress to Date

16

Section 1

BRISBANE CITY COUNCILCouncil Schedule of Application of Capital Funding by Sub-Program (continued)


Approved Annual Budget

2005/06% of Budget

ExpendedMarch 2006 $ $ $

FUTURE BRISBANE

Planning for a Growing City (24,998) 0 0.00%Enhancing Brisbanes Livability (2,630,925) 6,767,000 -38.88%Approving Quality Development 3,456,434 5,632,000 61.37%

TOTAL FUTURE BRISBANE 800,512 12,399,000 6.46%

MOVING BRISBANE

Transport Network 118,888,762 205,993,000 57.71%Public Transport 22,554,552 34,095,000 66.15%Clean and Green Active Transport (70,127) 0 0.00%

MOVING BRISBANE 141,373,188 240,088,000 58.88%

ENVIRONMENT AND PARKS

Attractive and Shady City 57,582 0 0.00%Biodiverse City 4,474,226 10,244,000 43.68%City of Diverse Parks 8,177,201 21,389,000 38.23%Council Environmental Performance 0 0 0.00%

TOTAL ENVIRONMENT AND PARKS 12,709,008 31,633,000 40.18%

HEALTHY WATERWAYS

Flood Management 27,574,954 37,554,000 73.43%Focus on the River Bay and Waterways 1,501,648 2,555,000 58.77%Healthy Waterways (704,052) 366,000 -192.36%

TOTAL HEALTY WATERWAYS 28,372,550 40,475,000 70.10%

WATER SUPPLY AND SEWERAGE

Supply Management 0 0 0.00%Sustainable Water Resources 1,535,762 8,894,000 17.27%Infrastructure Provision 85,495,058 114,914,000 74.40%

TOTAL WATER SUPPLY AND SEWERAGE 87,030,821 123,808,000 0.00%

INFORMATION TECHNOLOGY

Information and Technology Enabled 2,113,662 7,919,000 26.69%

TOTAL INFORMATION TECHNOLOGY 2,113,662 7,919,000 26.69%

BUSINESSES GROUP AND OTHER SERVICES

City Business 98,176 300,000 32.73%Brisbane Transport 892,905 2,335,000 38.24%City Fleet 0 0 0.00%Brisbane Water 585,171 4,286,000 13.65%City Works 1,027,482 3,519,000 29.20%

TOTAL BUSINESSES GROUP AND OTHER SERVICES 2,603,734 10,440,000 24.94%

TOTAL CAPITAL WORKS 303,870,739 520,646,000 58.36%

Progress to Date

Negative balances arise from reclassifications of prior period expenditure from capital to expense.

17



SECTION 2

CORE SERVICES RESULTS

18

THIS PAGE IS DELIBERATELY BLANK

19

Section 2

BRISBANE CITY COUNCILCore Services Summary of Operations and Application of Capital Funding


Approved YTD Budget


to DateMarch 2006 $ $ $

PROGRAMS

RevenueOrganisational Capability 2,864,120 2,615,932 248,188City Governance 428,102,310 416,504,527 11,597,783Economic Development 8,171,753 8,043,610 128,143Information Technology 437,079 345,855 91,224Customer Focus 259,387 213,097 46,290Your Brisbane 9,379,059 9,885,848 (506,789)Healthy and Sustainable Brisbane 67,580,986 67,062,491 518,495Future Brisbane 27,542,844 28,810,212 (1,267,368)Moving Brisbane 63,975,485 61,717,250 2,258,235Environment and Parks 20,362,570 21,040,636 (678,066)Healthy Waterways 20,211,921 17,316,463 2,895,458Water Supply and Sewerage 73,982,092 78,511,499 (4,529,407)

722,869,606 712,067,420 10,802,186

ExpensesOrganisational Capability 29,545,076 35,741,879 (6,196,803)City Governance 96,640,677 100,429,384 (3,788,707)Economic Development 16,920,434 17,578,054 (657,620)Information Technology 4,996,772 5,155,944 (159,172)Customer Focus 18,103,932 19,206,921 (1,102,989)Your Brisbane 66,816,544 72,592,264 (5,775,720)Healthy and Sustainable Brisbane 76,709,033 76,626,311 82,721Future Brisbane 48,492,867 43,841,739 4,651,128Moving Brisbane 239,717,926 240,212,617 (494,691)Environment and Parks 55,690,867 59,477,301 (3,786,434)Healthy Waterways 50,158,963 48,661,454 1,497,509Water Supply and Sewerage (61,950,226) (67,139,712) 5,189,486

641,842,865 652,384,156 (10,541,292)

INCREASE IN OPERATING CAPABILITY 81,026,741 59,683,263 21,343,478

APPLICATION OF CAPITAL FUNDING (Acquisition of non-current assets)

Organisational Capability 43,309 0 43,309City Governance 23,251,515 33,824,081 (10,572,566)Economic Development 584,469 607,000 (22,531)Information Technology 2,113,662 6,041,554 (3,927,892)Customer Focus 0 (60,000) 60,000Your Brisbane 1,886,375 3,359,017 (1,472,642)Healthy and Sustainable Brisbane 3,101,597 1,675,000 1,426,597Future Brisbane 800,512 8,091,100 (7,290,588)Moving Brisbane 141,373,188 183,875,159 (42,501,971)Environment and Parks 12,709,008 17,599,220 (4,890,212)Healthy Waterways 28,372,550 28,251,759 120,791Water Supply and Sewerage 87,030,821 89,071,306 (2,040,485)

301,267,005 372,335,196 (71,068,191)

Note: Total revenues and expenses by program differ from those in the Statement of Financial Performance because expenses by program includes discounts and pensioner remissions whereas in the Statement of Financial Performance these are deducted from rates and utility charges revenue. Program expenditure also includes internal charges and recoveries between programs.

20

REVENUEBy Core Services Program

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

400,000,000

450,000,000

OC CG ED IT CF YB H&SB FB MB E&P HW WS&S

Core Services Programs

Dol

lar $

Actual to dateBudget to date

Explanations for the above variances are included in the program summaries in Section 2 - Core Services Results.

21

EXPENSES By Core Services Program

(70,000,000)

(20,000,000)

30,000,000

80,000,000

130,000,000

180,000,000

230,000,000

OC

CG ED IT CF

YB

H&

SB FB MB

E&

P

HW

WS

&S


Dol

lar $

Actual to dateBudget to date


22

CAPITAL By Core Services Program

0

50,000,000

100,000,000

150,000,000

200,000,000

OC CG ED IT CF YB H&SB FB MB E&P HW WS&S


Dol

lar $

Actual to DateBudget to Date


23


24

Section 2.1

BRISBANE CITY COUNCILOrganisational Capability Program


Approved YTD Budget


to Date


to Date

Approved Budget 2005/06

March 2006 $ $ $ % $

OUTCOMES

RevenueManaging Councils Business 392,202 231,989 160,213 286,042Future Focused and Flexible Organisation 0 0 0 0Effective Partnerships and Communication 56,229 0 56,229 0Great Employer Clever Workforce 2,415,689 2,383,943 31,746 2,560,000

2,864,120 2,615,932 248,188 9.49% 2,846,042

ExpensesManaging Councils Business 13,875,691 15,284,959 (1,409,268) 20,364,468Future Focused and Flexible Organisation 642,135 870,290 (228,155) 1,291,000Effective Partnerships and Communication 2,230,448 2,301,844 (71,396) 3,108,712Great Employer Clever Workforce 12,796,802 17,284,786 (4,487,984) 23,137,000

29,545,076 35,741,879 (6,196,803) (17.34%) 47,901,180

APPLICATION OF CAPITAL FUNDING

Managing Councils Business 43,309 0 43,309 0Future Focused and Flexible Organisation 0 0 0 0Effective Partnerships and Communication 0 0 0 0Great Employer Clever Workforce 0 0 0 0

43,309 0 43,309 0.00% 0

25

Section 2.1

Revenue

Expenses

Capital

Organisational Capability capital expenditure program is over budget by $43,000 against a nil budget. There are no significant components.

BRISBANE CITY COUNCILReview of Organisational Capability Program


Organisational Capability has a favourable revenue variance of $248,000 (9.49%). There are no individual components greater than $100,000.

The HR Information Systems activity has a favourable variance of $2,518,000 due to later than anticipated billing of IT costs and lower than anticipated expenditure to date on IT projects.

The Organisational Alignment activity has a favourable variance of $1,862,000 due to a lower than anticipated contribution to the defined benefit scheme in the Superannuation Fund. This will be addressed at the next budget review.

The Recruitment / Employment activity has a favourable variance of $1,694,000 due to later than anticipated commencement of projects in the Community Jobs and Work for the Dole Programs. Savings associated with salaries, training, materials and reimbursements for apprentices and trainees placements will be included in the next budget review.

Organisational Capability has a favourable expense variance of $6,197,000 (17.3%).

26

SECTION 2.1ORGANISATIONAL CAPABILITY PROGRAM Explanation of Variances

OUTCOMEACTIVITY DIVISION VARIANCE F/U R/E/C T/P THE FOLLOWING VARIANCES ARE MAINLY DUE TO:

MANAGING COUNCILS BUSINESSTotal revenue variance $160,213 overTotal expense variance $1,409,268 underTotal capital variance $43,309 over

Business Improvement Services Office of Lord Mayor and CEO

$221,000 F E T/P Lower than anticipated labour costs to date relating to business reviews due to EBA 6 negotiations. The variance is also due to savings that will be included in the next budget review.

Organisation Alignment Office of Lord Mayor and CEO

$235,000 U E T/P Later than anticipated EBA 6 payments and other expenses for corporately funded initiatives such as Brisbane City Enterprises’ transition costs to the Snowy Mountains Engineering Corporation. EBA 6 payment increases will be addressed at the next budget review.

Organisation Alignment Strategic Procurement $101,000 U E T Costs to be reallocated at the next quarter.

Organisation Alignment Corporate Services $1,862,000 F E P Lower than anticipated contribution to the defined benefit scheme in the Superannuation Fund. This will be addressed at the next budget review.

Divisional Management Customer & Community Services

$212,000 F E T Lower than anticipated employee and marketing costs.

Effective Management and Administration

City Policy and Strategy $105,000 U E T Cost to be reallocated at the next quarter.

FUTURE FOCUSED AND FLEXIBLE ORGANISATIONTotal expense variance $228,155 under

Building Strategic Capability Office of Lord Mayor and CEO

$226,000 F E T Later than anticipated consultancy expenses relating to projects such as Your Voice employee survey and the strategic review of Brisbane Water assets.

GREAT EMPLOYER CLEVER WORKFORCETotal revenue variance $31,746 overTotal expense variance $4,487,984 under

Recruitment/employment Program

Corporate Services $1,694,000 F E T/P Later than anticipated commencement of projects in the Community Jobs and Work for the Dole Programs. Savings associated with salaries, training, materials and reimbursements for apprentices and trainees placements will be included in the next budget review.

LEGEND: F/U - favourable/unfavourable; R/E/C - revenue/expense/capital; T/P - timing/permanent 27

SECTION 2.1ORGANISATIONAL CAPABILITY PROGRAM Explanation of Variances


GREAT EMPLOYER CLEVER WORKFORCE (Cont.)

Workplace Health/Safety Framework

Corporate Services $158,000 F E T Lower than anticipated expenditure associated with positions being vacant in the Zero Harm project.

Learning/Development Programs

Corporate Services $133,000 F E T Lower than anticipated costs for materials and services. The learning and development programs have been reprioritised; these programs are scheduled for next quarter.

HR Information Systems Corporate Services $2,518,000 F E T Later than anticipated billing of IT costs and lower than anticipated expenditure to date on IT projects.


Section 2.2

BRISBANE CITY COUNCILCity Governance Program


Approved YTD Budget


to Date


to Date


March 2006 $ $ $ % $

OUTCOMES

RevenueCity Governance 34,792 27,753 7,039 37,000Council Close to the People 960 0 960 0Regional and International Activities 778,950 212,500 566,450 250,000Financial Strength 426,358,172 415,258,096 11,100,076 552,019,320Responsible Money Management 653,840 746,291 (92,451) 1,205,113Risk Management 275,597 259,887 15,710 314,000

428,102,310 416,504,527 11,597,783 2.78% 553,825,433

ExpensesCity Governance 12,606,682 12,485,470 121,212 16,910,978Council Close to the People 647,780 1,119,321 (471,541) 1,495,000Regional and International Activities 2,349,429 2,168,061 181,368 2,763,375Financial Strength 81,827,175 83,720,396 (1,893,222) 125,109,613Responsible Money Management 281,970 850,923 (568,953) 65,862Risk Management (1,072,360) 85,213 (1,157,573) 302,735

96,640,677 100,429,384 (3,788,707) (3.77%) 146,647,563


City Governance 0 0 0 0Council Close to the People 0 0 0 0Regional and International Activities 0 0 0 0Financial Strength 16,966,351 17,677,000 (710,649) 23,651,000Responsible Money Management 6,285,164 16,147,081 (9,861,917) 19,577,000Risk Management 0 0 0 0

23,251,515 33,824,081 (10,572,566) (31.26%) 43,228,000

29

Section 2.2

BRISBANE CITY COUNCILReview of City Governance Program

Revenue

City Governance has a favourable revenue variance of $11,598,000 (2.78%).

Expenses

Capital

The Value Considerations in Decision Making activity has a favourable variance of $9,862,000 due to later than anticipated renewal of fleet contracts. This will be addressed at the next budget review.

The Improve Management and Performance activity has a favourable variance of $2,535,000 due to later than anticipated expenses relating to Newstead Riverpark. The remainder is due to later than anticipated consultancy costs for the Brisbane Square project.

The Best Risk Management Frameworks activity has a favourable variance of $1,131,000 due to lower than anticipated expenditure for insurance settlement costs to date. The remainder is due to lower than anticipated insurance premiums and commissions. This will be addressed at the next budget review.

The Value Considerations in Decision Making activity has a favourable variance of $571,000 due to lower than anticipated recruitment and consultancy costs. The variance is also due to lower than anticipated redeployee costs arising from the transition of City Fleet to Fleet Product Group and other costs including depreciation and registrations as a result of reduced fleet numbers. These will be addressed at the next budget review.

City Governance capital expenditure program is under budget by $10,573,000 (31.26%).

The Support Interests of Brisbane Community activity has a favourable variance of $461,000 due to higher than anticipated funding from the Council of Mayors (SEQ) and the Council of Capital Cities Lord Mayor secretariat. This will be addressed at the next budget review.

City Governance has a favourable expense variance of $3,789,000 (3.77%).


The Corporate Treasury activity has a favourable variance of $4,996,000 due to higher than anticipated income from the QIC Self Managed Insurance investment and interest on deposits. This will be addressed at the next budget review.

The Financial Management activity has a favourable variance of $4,172,000 due to higher than anticipated rates received in advance and imputed income tax from the South East Queensland Water Corporation. These will be addressed at the next budget review.

The Improve Management and Performance activity has a favourable variance of $1,902,000 due to earlier than anticipated receipt of the State Government contributions towards Brisbane Metropoliton Transport Management Centre. The remainder is due to receipts from developers for delays in the Brisbane Square project delivery. These will be included in the next budget review.

30

SECTION 2.2

CITY GOVERNANCE PROGRAM Explanation of Variances


CITY GOVERNANCETotal revenue variance $7,039 overTotal expense variance $121,212 over

Councillor Support Office of Lord Mayor and CEO

$151,000 U E P Higher than anticipated labour cost including EBA 6 payments. This will be addressed at the next budget review.

COUNCIL CLOSE TO THE PEOPLETotal revenue variance $960 overTotal expense variance $471,541 under

Community Research Office of Lord Mayor and CEO

$144,000 F E T/P Later than anticipated activity in the community research project and lower than anticipated labour cost. Savings will be included in the next budget review.

Brand Management Corporate Services $235,000 F E T/P Later than anticipated expenditure associated with publishing Neighborhood Planning brochures, media monitoring and consultancies audit. Savings associated with media monitoring will be included in the next budget review.

FINANCIAL STRENGTHTotal revenue variance $11,100,076 overTotal expense variance $1,893,222 underTotal capital variance $710,649 under

Rates Processing Centre Customer & Community Services

$132,000 F E T Lower than anticipated labour and other operational costs associated with the Billing Optimisation project. The variance is also due to lower than anticipated expenditure for labour and plant & equipment.

Financial Management Corporate Services $4,172,000 F R P Higher than anticipated rates received in advance and imputed income tax from the South East Queensland Water Corporation. These will be addressed at the next budget review.

Financial Management Corporate Services $859,000 U E T Lower than anticipated imputed income tax recovery from business units.

Financial Management Corporate Services $150,000 F C P Later than anticipated expenditure in the Core Land project. This will be addressed at the next budget review.


SECTION 2.2



FINANCIAL STRENGTH (Cont.)

Improve Management and Performance

Corporate Services $1,902,000 F R P Earlier than anticipated receipt of State Government contributions towards the Brisbane Metropoliton Transport Management Centre. The remainder is due to receipts from developers for delays in the Brisbane Square project delivery. These will be included in the next budget review.


Corporate Services $2,535,000 F E T Later than anticipated expenses relating to Newstead Riverpark. The remainder is due to later than anticipated consultancy costs for the Brisbane Square project.


Corporate Services $561,000 F C P Later than anticipated cost for the Brisbane Square project. This will be addressed at the next budget review.

Corporate Treasury Corporate Services $4,996,000 F R P Higher than anticipated income from the QIC Self Managed Insurance investment and interest on deposits. This will be addressed at the next budget review.

Corporate Treasury Corporate Services $144,000 F E T/P Lower than anticipated QTC borrowing costs to date and higher than anticipated business unit current accounts interest. The interest on current accounts will be addressed at the next budget review.

RESPONSIBLE MONEY MANAGEMENTTotal revenue variance $92,451 underTotal expense variance $568,953 underTotal capital variance $9,861,917 under

Value Considerations in Decision Making

Strategic Procurement $571,000 F E P Lower than anticipated recruitment and consultancy costs. The variance is also due to lower than anticipated redeployee costs arising from the transition of City Fleet to Fleet Product Group and other costs including depreciation and registrations as a result of reduced fleet numbers. These will be addressed at the next budget review.

Value Considerations in Decision Making

Strategic Procurement $9,862,000 F C P Later than anticipated renewal of fleet contracts. This will be addressed at the next budget review.


SECTION 2.2



REGIONAL AND INTERNATIONAL ACTIVITIESTotal revenue variance $566,450 overTotal expense variance $181,368 over

Support Interests of Brisbane Community

Office of Lord Mayor and CEO

$461,000 F R P Higher than anticipated funding from the Council of Mayors (SEQ) and the Council of Capital Cities Lord Mayors secretariat (refer offset in expense). This will be addressed at the next budget review.

Support Interests of Brisbane Community


$284,000 U E P Higher than anticipated expenses incurred for the operations of the Council of Mayors (SEQ) and the Council of Capital Cities Lord Mayors secretariat (refer offset in revenue). This will be addressed at the next budget review.

Strategic Alliances with Asia Pacific Region


$105,000 F R P Higher than anticipated funding for registration fees and business development opportunities in relation to the Asia Pacific Cities Summit conference in Chongqing, China. This will be addressed at the next budget review.

Strategic Alliances with Asia Pacific Region


$155,000 F E T Later than anticipated expenditure for pre-conference activities in relation to the World Technopolis Association General Assembly. The remainder is due to later than anticipated expenditure for Sister Cities Asia Pacific Strategy 2007.

RISK MANAGEMENTTotal revenue variance $15,710 overTotal expense variance $1,157,573 under

Best Practice Risk Management Frameworks

Strategic Procurement $1,131,000 F E P Lower than anticipated expenditure for insurance settlement costs to date. The remainder is due to lower than anticipated insurance premiums and commissions. This will be addressed at the next budget review.



34

Section 2.3

BRISBANE CITY COUNCILEconomic Development Program


Approved YTD Budget


to Date


to Date


March 2006 $ $ $ % $

OUTCOMES

RevenueBrisbane Business 105,421 75,000 30,421 156,000Positioning Brisbane 8,066,332 7,968,610 97,722 10,711,000

8,171,753 8,043,610 128,143 1.59% 10,867,000

ExpensesBrisbane Business 969,818 1,024,384 (54,566) 1,478,000Positioning Brisbane 15,950,616 16,553,670 (603,054) 20,512,000

16,920,434 17,578,054 (657,620) (3.74%) 21,990,000


Brisbane Business 0 0 0 0Positioning Brisbane 584,469 607,000 (22,531) 607,000

584,469 607,000 (22,531) (3.71%) 607,000

35

Section 2.3

BRISBANE CITY COUNCILReview of Economic Development Program

Revenue

Economic Development has a favourable revenue variance of $128,000 (1.59%).

Expenses

Economic Development has a favourable expense variance of $658,000 (3.74%).

Capital

Economic Development capital expenditure program is under budget by $23,000 (3.71%). There are no significant components.


The Queen Street Mall activity has a favourable variance of $252,000 due to earlier than anticipated receipt of the Queensland Investment Corporation contribution to the Queen Street Mall Visitor Information Centre.

The ourbrisbane.com activity has a favourable variance of $451,000 due to later than anticipated advertising costs.

The Queen Street Mall activity has a favourable variance of $221,000 due to lower than anticipated maintenance expenditure.

36

SECTION 2.3

ECONOMIC DEVELOPMENT PROGRAM Explanation of Variances


BRISBANE BUSINESSTotal revenue variance $30,421 overTotal expense variance $54,566 under

Business Support City Policy and Strategy $103,000 F E P Savings as a result of branch re-structuring. This will be included in the next budget review.

POSITIONING BRISBANETotal revenue variance $97,722 overTotal expense variance $603,054 underTotal capital variance $22,531 under

ourBrisbane.com iDivision $451,000 F E T Later than anticipated advertising costs.

Queen St Mall Corporate Services $184,000 U R T Later than anticipated billing of the Queen Street Mall rateable accounts.

Queen Street Mall City Policy and Strategy $252,000 F R T Earlier than anticipated receipt of the Queensland Investment Corporation contribution to the Queen Street Mall Visitor Information Centre.

Queen Street Mall City Policy and Strategy $221,000 F E T Lower than anticipated maintenance expenditure.



38

Section 2.4

BRISBANE CITY COUNCILInformation Technology Program


Approved YTD Budget


to Date


to Date


September 2005 $ $ $ % $

OUTCOMES

RevenueInformation and Technology Enabled 437,079 345,855 91,224 470,000

437,079 345,855 91,224 26.38% 470,000

ExpensesInformation and Technology Enabled 4,996,772 5,155,944 (159,172) 5,413,262

4,996,772 5,155,944 (159,172) (3.09%) 5,413,262


Information and Technology Enabled 2,113,662 6,041,554 (3,927,892) 7,919,000

2,113,662 6,041,554 (3,927,892) (65.01%) 7,919,000

39

Section 2.4

BRISBANE CITY COUNCILReview of Information Technology Program

Revenue

Expenses

Information Technology has a favourable expense variance of $159,000 (3.09%).

Capital

Information Technology capital expenditure program is under budget by $3,928,000 (65.01%)


Information Technology has a favourable revenue variance of $91,000 (26.38%). There are no significant components.

The Optimise Organisational IT Effectiveness activity has a favourable variance of $159,000 due to later than anticipated expenditure on projects such as the Dual Data Centre & Service Management Program projects.

The Optimise Organisational IT Effectiveness activity is under budget by $3,928,000 due to lower than anticipated expenditure on service development projects. This will be addressed at the next budget review. The remaining variance is due to later than anticipated expenditure on the IT equipment purchase contract.

40

SECTION 2.4

INFORMATION TECHNOLOGY PROGRAM Explanation of Variances


INFORMATION AND TECHNOLOGY ENABLEDTotal revenue variance $91,224 overTotal expense variance $159,172 underTotal capital variance $3,927,892 under

Optimise Organisational IT Effectiveness

iDivision $159,000 F E T Later than anticipated expenditure on projects such as the Dual Data Centre & Service Management Program projects.

Optimise Organisational IT Effectiveness

iDivision $3,928,000 F C P/T Lower than anticipated expenditure on service development projects. This will be addressed at the next budget review. The remaining variance is due to later than anticipated expenditure on the IT equipment purchase contract.



42

Section 2.5

BRISBANE CITY COUNCILCustomer Focus Program


Approved YTD Budget


to Date


to Date


September 2005 $ $ $ % $

OUTCOMES

RevenueImproved Responsiveness (4,216) 0 (4,216) 0Inclusive and Accessible 226,928 141,724 85,204 175,000Efficiency and Effectiveness 32,009 71,373 (39,364) 97,000Consistency Simplicity and Transparency 4,667 0 4,667 0Skilled and Experienced Staff 0 0 0 0

259,387 213,097 46,290 21.72% 272,000

ExpensesImproved Responsiveness 1,553,662 1,740,206 (186,544) 2,549,000Inclusive and Accessible 15,017,883 15,683,076 (665,193) 20,656,000Efficiency and Effectiveness 1,177,203 1,389,961 (212,758) 1,882,000Consistency Simplicity and Transparency 167,377 195,735 (28,358) 266,000Skilled and Experienced Staff 187,807 197,943 (10,136) 269,000

18,103,932 19,206,921 (1,102,989) (5.74%) 25,622,000


Improved Responsiveness 0 0 0 0Inclusive and Accessible 0 0 0 0Efficiency and Effectiveness 0 0 0 0Consistency Simplicity and Transparency 0 (60,000) 60,000 118,000Skilled and Experienced Staff 0 0 0 0

0 (60,000) 60,000 (100.00%) 118,000

43

Section 2.5

BRISBANE CITY COUNCILReview of Customer Focus Program

Revenue

Expenses

Capital

The Customer Services Branch Management activity has a favourable variance of $159,000 due to lower than anticipated operational costs.

Customer Focus capital expenditure program is over budget by $60,000 (100%). There are no significant components.


Customer Focus has a favourable revenue variance of $46,000 (21.72%). There are no significant components.

Customer Focus has a favourable expense variance of $1,103,000 (5.74%).

The Customer Service Information System activity has a favourable variance of $560,000 due to later than anticipated expenditure on the Front End Automation Sustainability project. This will be addressed at the next budget review.

The Community Network activity has a favourable variance of $159,000 due to lower than anticipated contractor costs. This is due to work being performed by Council staff rather than contract staff.

44

SECTION 2.5

CUSTOMER FOCUS PROGRAM Explanation of Variances


IMPROVED RESPONSIVENESSTotal revenue variance $4,216 underTotal expense variance $186,544 under

Community Network Customer & Community Services

$159,000 F E T Lower than anticipated contractor costs. This is due to work being performed by Council rather than contract staff.

INCLUSIVE AND ACCESSIBLETotal revenue variance $85,204 overTotal expense variance $665,193 under

Customer Service Information System

Customer & Community Services

$560,000 F E P Later than anticipated expenditure on the Front End Automation Sustainability project. This will be addressed at the next budget review.

EFFICIENCY AND EFFECTIVENESSTotal revenue variance $39,364 underTotal expense variance $212,758 under

Customer Services Branch Management


$159,000 F E T Lower than anticipated operational costs.



46

Section 2.6

BRISBANE CITY COUNCILYour Brisbane Program


Approved YTD Budget


to Date


to Date


September 2005 $ $ $ % $

OUTCOMES

RevenueArts and Culture 2,945,926 2,407,638 538,288 3,414,000Brisbane’s Libraries 2,339,006 3,279,732 (940,726) 4,442,000Sports and Recreation 3,348,657 3,674,481 (325,824) 4,828,756Opportunities for All 745,469 523,997 221,472 661,000

9,379,059 9,885,848 (506,789) (5.13%) 13,345,756

ExpensesArts and Culture 20,698,179 22,510,579 (1,812,400) 28,789,600Brisbane’s Libraries 24,710,818 26,281,966 (1,571,148) 36,017,000Sports and Recreation 13,059,023 14,229,363 (1,170,340) 20,242,089Opportunities for All 8,348,523 9,570,356 (1,221,833) 13,825,000

66,816,544 72,592,264 (5,775,720) (7.96%) 98,873,689


Arts and Culture 1,748,901 1,909,959 (161,058) 2,370,000Brisbane’s Libraries 100,294 1,113,058 (1,012,764) 1,337,000Sports and Recreation 37,180 336,000 (298,820) 1,304,000Opportunities for All 0 0 0 0

1,886,375 3,359,017 (1,472,642) (43.84%) 5,011,000

47

Section 2.6

BRISBANE CITY COUNCILReview of Your Brisbane Program

Revenue

Your Brisbane has an unfavourable revenue variance of $507,000 (5.13%).

Expenses

Your Brisbane has a favourable expense variance of $5,776,000 (7.96%).

Capital

Your Brisbane capital expenditure program is under budget by $1,473,000 (43.84%).

The Enhance Libraries activity is under budget by $803,000 due to lower than anticipated costs associated with the Brisbane Square - Library Fit out project. This will be addressed at the next budget review.

The Manage City Pool activity is under budget by $299,000 due to lower than anticipated expenditure in the Service Developments project including the City Pools Strategy Implementation and the City Pools Upgrade projects. These will be addressed at the next budget review.

The Manage the Brisbane Powerhouse activity has a favourable variance of $950,000 due to lower than anticipated depreciation cost and maintenance expenditure. The cost associated with depreciation will be addressed at the next budget review.

The Manage City Hall activity has a favourable variance of $731,000 due to later than anticipated maintenance expenditure.

The Local Participation Initiatives activity has a favourable variance of $560,000 due to later than anticipated payments relating to the Calamvale Indoor Centre. The remainder is due to lower than anticipated costs associated with the School Partnership program for 05/06. This will be included in the next budget review.

The Manage Councils Sports Complexes activity has a favourable variance of $554,000 due to expenses to be reallocated in the next quarter.


The Library Resources and Support activity has an unfavourable variance of $562,000 due to funds transferred to Council’s trust account.

The Enhance Libraries activity has a favourable variance of $1,245,000 due to lower than anticipated costs associated with depreciation and Brisbane Square - Library Fit out project. This will be addressed at the next budget review.

The Participation Initiatives activity has a favourable variance of $1,164,000 due to lower than anticipated expenditure in the Opportunities for All Service Development project including the Affordable Housing Incentives package. This will be included in the next budget review. The remainder is due to later than anticipated maintenance cost and projects expenditure.

48

SECTION 2.6

YOUR BRISBANE PROGRAM Explanation of Variances


ARTS AND CULTURETotal revenue variance $538,288 overTotal expense variance $1,812,400 underTotal capital variance $161,058 under

City Hall Operations Customer & Community Services

$406,000 F R T Higher than anticipated revenue generated from additional room hire, catering, audio visual and security services provided for functions held within City Hall.

City Hall Operations Customer & Community Services

$345,000 U E T Higher than anticipated expenses incurred in catering, audio visual and security services due to additional functions held within City Hall.

Manage City Hall City Policy and Strategy $731,000 F E T Later than anticipated maintenance expenditure.

Manage the Brisbane Powerhouse

City Policy and Strategy $950,000 F E T/P Lower than anticipated depreciation cost and maintenance expenditure. The cost associated with depreciation will be addressed at the next budget review.

Local Cultural Activities City Policy and Strategy $369,000 F E T/P Lower than anticipated costs associated with depreciation, maintenance and several projects. The depreciation cost will be addressed at the next budget review.

Brisbane a City of Festivals City Policy and Strategy $184,000 F E T Later than anticipated expenditure associated with the grants program.

BRISBANE’S LIBRARIESTotal revenue variance $940,726 underTotal expense variance $1,571,148 underTotal capital variance $1,012,764 under

Library Resources & Support Customer & Community $562,000 U R P Funds transferred to Council’s trust account.

Library Resources & Support Customer & Community $169,000 F E T Later than anticipated Service Development costs.

Library Resources & Support Customer & Community $210,000 F C T Later than anticipated Service Development costs.

Enhance Libraries City Policy and Strategy $1,245,000 F E P Lower than anticipated costs associated with depreciation and Brisbane Square - Library Fit out project. This will be addressed at the next budget review.

Enhance Libraries City Policy and Strategy $803,000 F C P Lower than anticipated costs associated with the Brisbane Square - Library Fit out project. This will be addressed at the next budget review.

Library collection Customer & Community $386,000 U R T Later than anticipated receipt of the State Library grant.


SECTION 2.6



BRISBANE’S LIBRARIES (Cont.)

Library Futures City Policy and Strategy $139,000 F E T Later than anticipated expenses associated with minor projects including Project Coordination & Forward Planning.

OPPORTUNITIES FOR ALLTotal revenue variance $221,472 overTotal expense variance $1,221,833 under

Community Development Teams Customer & Community Services

$342,000 F R P Higher than anticipated receipts for project grants. This will be included in the next budget review.

Participation Initiatives City Policy and Strategy $121,000 U R T Later than anticipated receipt of funds from the State Government for the Blak Business Smart Business project.

Participation Initiatives City Policy and Strategy $1,164,000 F E P/T Lower than anticipated expenditure in the Opportunities for All Service Development project including the Affordable Housing Incentives package. This will be included in the next budget review. The remainder is due to later than anticipated maintenance cost and projects expenditure.

SPORTS AND RECREATIONTotal revenue variance $325,824 underTotal expense variance $1,170,340 underTotal capital variance $298,820 under

Local Participation Initiatives City Policy and Strategy $560,000 F E T/P Later than anticipated payments relating to the Calamvale Indoor Centre. The remainder is due to lower than anticipated costs associated with the School Partnership program for 05/06. This will be included in the next budget review.

Golf Courses City Business $194,000 F E T Lower than anticipated water charges at Victoria Park due to the water restrictions. The remainder is due later than anticipated maintenance expenses, labour costs and City Fleet maintenance charges.

Manage Golf Facilities City Policy and Strategy $102,000 F E P/T Lower than anticipated depreciation cost. This will be addressed at the next budget review. The remainder is due to later than anticipated maintenance expenses.

Riverstage City Business $206,000 F R P Higher than anticipated commercial events held at The Riverstage (refer offset in expenses). This will be included in the next budget review.

Riverstage City Business $170,000 U E P Higher than anticipated commercial and community events held at The Riverstage (refer offset in revenue). This will be addressed in the next budget review.


SECTION 2.6



SPORTS AND RECREATION (Cont.)

Manage City Pools City Policy and Strategy $140,000 U E T Earlier than anticipated project expenses.

Manage City Pools City Policy and Strategy $299,000 F C P Lower than anticipated expenditure in the Service Developments project including the City Pools Strategy Implementation and the City Pools Upgrade projects. These will be addressed at the next budget review.

Manage Councils Sports Complexes

City Policy and Strategy $487,000 U R T Revenue to be reallocated in the next quarter (refer offset in expenses).

Manage Councils Sports Complexes

City Policy and Strategy $554,000 F E T Expenses to be reallocated in the next quarter (refer offset in revenue).

City Venues City Business $184,000 U E T Labour cost to be reallocated in the next quarter.

Policy Development and Consultation

City Policy and Strategy $163,000 F E T Later than anticipated expenditure in minor projects.



52

Section 2.7

BRISBANE CITY COUNCILHealthy and Sustainable Brisbane Program


Approved YTD Budget


to Date


to Date


September 2005 $ $ $ % $

OUTCOMES

RevenueManaging Brisbane’s Waste 56,967,672 55,558,946 1,408,726 75,442,942Sustainability 715,834 725,000 (9,166) 1,233,000Public Health 5,816,216 6,933,247 (1,117,031) 9,161,000Brisbane’s Cemeteries and Crematoria 3,921,646 3,793,657 127,989 5,001,185Citizen’s Security 159,617 51,641 107,976 143,000

67,580,986 67,062,491 518,495 0.77% 90,981,127

ExpensesManaging Brisbane’s Waste 53,577,818 52,730,393 847,425 74,947,359Sustainability 3,918,262 4,273,228 (354,966) 5,778,745Public Health 11,632,708 11,953,160 (320,452) 16,499,651Brisbane’s Cemeteries and Crematoria 5,189,117 5,327,636 (138,519) 7,163,102Citizen’s Security 2,391,127 2,341,895 49,232 3,197,000

76,709,033 76,626,311 82,721 0.11% 107,585,857


Managing Brisbane’s Waste 2,991,087 1,655,000 1,336,087 4,900,000Sustainability 0 0 0 0Public Health 0 0 0 0Brisbane’s Cemeteries and Crematoria 110,510 20,000 90,510 20,000Citizen’s Security 0 0 0 0

3,101,597 1,675,000 1,426,597 85.17% 4,920,000

53

Section 2.7

BRISBANE CITY COUNCILReview of Healthy and Sustainable Brisbane Program

Revenue

Healthy and Sustainable Brisbane has a favourable revenue variance of $518,000 (0.77%).

Expenses

Healthy and Sustainable Brisbane has an unfavourable expense variance of $83,000 (0.11%).

Capital

Healthy and Sustainable Brisbane capital expenditure program is over budget by $1,427,000 (85.17%).


The City Waste Services activity has a favourable variance of $1,408,000 due to higher than anticipated cleansing revenue and an earlier than anticipated receipt of rental income for the power station at the landfill site. The remaining variance is due to greater than anticipated gatehouse revenue and reimbursement from SITA for stolen bins.

The Health Licensing Enforcement Services activity has an unfavourable variance of $772,000 due to the impact of repealing the Local Law for Accommodation Standards. This will be addressed at the next budget review.

The Rehabilitation and Maintenance of Closed Landfills activity has an unfavourable variance of $710,000 due to earlier than anticipated costs in relation to the Willawong and Nudgee Landfill Remediation projects as a result of being ahead of schedule.

The Reduce Pollution activity has a favourable variance of $220,000 due to payroll costing issues and general ledger restructuring which have resulted in cost allocations between activities to be adjusted in the next quarter. The remainder is attributable to later than anticipated progress on the Valley Music Harmony project.

The Public Health Strategies and Services activity has a favourable variance of $207,000 due to lower than anticipated expenditure on the IIIicit Drugs and K9 Capers projects. The Illicit Drugs variance will be addressed at the next budget review.

The Waste Stream Management activity has a favourable variance of $290,000 due to lower than anticipated Recycling Communication Campaign expenditure and depreciation costs. This is partly offset by higher than anticipated expenditure relating to waste voucher costs and less internal recoveries for City Waste Services fees.

The Rehabilitation and Maintenance of Closed Landfills activity is over budget by $1,336,000 due to earlier than anticipated costs in relation to the Willawong and Nudgee Landfill Remediation projects as a result of being ahead of schedule.

54

SECTION 2.7

HEALTHY & SUSTAINABLE BRISBANE PROGRAM Explanation of Variances


MANAGING BRISBANE’S WASTETotal revenue variance $1,408,726 overTotal expense variance $847,425 overTotal capital variance $1,336,087 over

City Waste Services City Business $1,408,000 F R T Higher than anticipated cleansing revenue and an earlier than anticipated receipt of rental income for the power station at the landfil site. The remaining variance is due to greater than anticipated gatehouse revenue and reimbursement from SITA for stolen bins.

City Waste Services City Business $428,000 U E T Higher than anticipated contract costs due to escalating fuel costs and higher than anticipated bin lifts. The remaining variance is due to higher than anticipated imputed income tax and labour costs due to EBA6. These variances are partly offset by greater than anticipated Community Service Obligation revenue and internal gatehouse revenue (expense recovery).

Waste Stream Management City Policy and Strategy $290,000 F E T Lower than anticipated Recycling Communication Campaign expenditure and depreciation costs. This is partly offset by higher than anticipated expenditure relating to waste voucher costs and less internal recoveries for City Waste Services fees.

Rehabilitation and Maintenance of Closed Landfills

City Policy and Strategy $710,000 U E T Earlier than anticipated costs in relation to the Willawong and Nudgee Landfill Remediation projects as a result of being ahead of schedule.

Rehabilitation and Maintenance of Closed Landfills

City Policy and Strategy $1,336,000 U C T Earlier than anticipated costs in relation to the Willawong and Nudgee Landfill Remediation projects as a result of being ahead of schedule.

SUSTAINABILITYTotal revenue variance $9,166 underTotal expense variance $354,966 under

Greenhouse Actions City Policy and Strategy $145,000 F E P Lower than anticipated uptake of the sustainable housing rebate. This will be addressed at the next budget review.

Reduce Pollution City Policy and Strategy $220,000 F E T Payroll costing issues and general ledger restructuring which have resulted in cost allocations between activities to be adjusted in the next quarter. The remainder is attributable to later than anticipated progress on the Valley Music Harmony project.

LEGEND: F/U - favourable/unfavourable; R/E/C - revenue/expense/capital; T/P - timing/permanent55

SECTION 2.7

HEALTHY & SUSTAINABLE BRISBANE PROGRAM Explanation of Variances


PUBLIC HEALTHTotal revenue variance $1,117,031 underTotal expense variance $320,452 under

Public Health Strategies and Services

City Policy and Strategy $207,000 F E T/P Lower than anticipated expenditure on the IIIicit Drugs and K9 Capers projects. The Illicit Drugs variance will be addressed at the next budget review.

Mosquito and Pest Services City Policy and Strategy $115,000 F E T Lower than anticipated Mosquito & Pest Spraying activity as a result of lower rainfall up to the end of March.

Local Law Enforcement & Animal Management


$415,000 U R P Lower than anticipated revenue in relation to Dog registrations and Animal Infringements. This will be addressed at the next budget review.

Health Licensing/Enforcement Services


$772,000 U R P Impact of repealing the Local Law for Accommodation Standards. This will be addressed at the next budget review.

BRISBANE’S CEMETERIES AND CREMATORIATotal revenue variance $127,989 overTotal expense variance $138,519 underTotal capital variance $90,510 over

Brisbane City Cemeteries City Business $128,000 F R T Higher than anticipated sales in pre-need graves and plaques.

Manage Cemetery and Crematoria Services

City Policy and Strategy $133,000 F E T Lower than anticipated expenditure on maintenance.

LEGEND: F/U - favourable/unfavourable; R/E/C - revenue/expense/capital; T/P - timing/permanent56

Section 2.8

BRISBANE CITY COUNCILFuture Brisbane Program


Approved YTD Budget


to Date


to Date


September 2005 $ $ $ % $

OUTCOMES

RevenuePlanning for a Growing City 445,938 410,300 35,638 480,000Enhancing Brisbanes Livability 1,011,480 875,750 135,730 1,591,000Approving Quality Development 26,085,426 27,524,162 (1,438,736) 38,344,000

27,542,844 28,810,212 (1,267,368) (4.40%) 40,415,000

ExpensesPlanning for a Growing City 4,296,791 4,781,100 (484,309) 6,401,000Enhancing Brisbanes Livability 10,549,780 6,566,550 3,983,230 9,053,000Approving Quality Development 33,646,297 32,494,089 1,152,208 44,158,795

48,492,867 43,841,739 4,651,128 10.61% 59,612,795


Planning for a Growing City (24,998) 0 (24,998) 0Enhancing Brisbanes Livability (2,630,925) 3,446,000 (6,076,925) 6,767,000Approving Quality Development 3,456,434 4,645,100 (1,188,666) 5,632,000

800,512 8,091,100 (7,290,588) (90.11%) 12,399,000

57

Section 2.8

BRISBANE CITY COUNCILReview of Future Brisbane Program

Revenue

Future Brisbane has an unfavourable revenue variance of $1,267,000 (4.4%).

Expenses

Future Brisbane has an unfavourable expense variance of $4,651,000 (10.61%).

Capital

Future Brisbane capital expenditure program is under budget by $7,291,000 (90.11%).


The Quality Development activity has an unfavourable variance of $1,383,000 due to lower than anticipated Development Assessment revenue as a result of the continuing downward trend in application numbers. The remainder of the variance is due to lower than anticipated licensing and compliance, signs licensing, plumbing services, private certifier lodgements and planning & development certificate activity. This will be addresed at the next budget review.

The City Signature Program activity has an unfavourable variance of $4,800,000 due to costs that have been allocated from capital to expense (refer offset in capital). This will be addressed at the next budget review.

The City Signature Program activity is under budget by $6,150,000 due to costs that have been allocated from capital to expense (refer offset in expense). The remaining variance is due to Suburban City Improvement Project sites which did not proceed. This will be addressed at the next budget review.

The Quality Development activity is under budget by $1,189,000 due to later than anticipated licence payment and expenditure on contractors relating to the OpenDoors Project. The remainder of the variance is due to lower than anticipated project labour.

The Quality Development activity has an unfavourable variance of $1,339,000 due to higher than anticipated labour costs. The remainder of the variance is due to higher than anticipated depreciation costs for the Development Assessment Regulatory Transactions (DART) system. This will be addressed at the next budget review.

The Plans for Suburbs and Other Development Areas activity has a favourable variance of $490,000 due to lower than anticipated labour costs in Neighbourhood Planning due to staff movements.

The Strategic Land Use Planning activity has a favourable variance of $347,000 due to later than anticipated consultancy costs. The remaining variance is due to later than anticipated materials and services expenditure in the CBD project.

The Urban Renewal Planning in Inner Suburbs activity has a favourable variance of $327,000 due to later than anticipated expenditure on the West End South Brisbane Woolloongabba project.

58

SECTION 2.8

FUTURE BRISBANE PROGRAM Explanation of Variances


PLANNING FOR A GROWING CITYTotal revenue variance $35,638 overTotal expense variance $484,309 underTotal capital variance $24,998 under

Strategic Land Use Planning City Policy and Strategy $347,000 F E T Later than anticipated consultancy costs. The remaining variance is due to later than anticipated materials and services expenditure in the CBD project.

Infrastructure Charges Plans Agreements

City Policy and Strategy $171,000 F E T Temporary vacancies early in the financial year and timing of consultancies, printing, services, and minor legal costs.

ENHANCING BRISBANES LIVABILITYTotal revenue variance $135,730 overTotal expense variance $3,983,230 overTotal capital variance $6,076,925 under

Plans for Suburbs and Other Development Areas

City Policy and Strategy $490,000 F E T Lower than anticipated labour costs in Neighbourhood Planning due to staff movements.

Urban Renewal Planning in Inner Suburbs

City Policy and Strategy $327,000 F E T Later than anticipated expenditure on the West End South Brisbane Woolloongabba project.

City Improvement Projects Corporate Services $101,000 F R P Higher than anticpated revenue from City Improvement projects such as the Surburban Centre Improvement Project. This will be addressed at the next budget review.

City Signature Program City Policy and Strategy $4,800,000 U E P Costs that have been allocated from capital to expense (refer offset in capital). This will be addressed at the next budget review.

City Signature Program City Policy and Strategy $6,150,000 F C P Costs that have been allocated from capital to expense (refer offset in expense). The remaining variance is due to Suburban City Improvement Project sites which did not proceed. This will be addressed at the next budget review.


SECTION 2.8

FUTURE BRISBANE PROGRAM Explanation of Variances


APPROVING QUALITY DEVELOPMENTTotal revenue variance $1,438,736 underTotal expense variance $1,152,208 overTotal capital variance $1,188,666 under

Quality Development Customer & Community Services $1,383,000 U R P Lower than anticipated Development Assessment revenue as a result of the continuing downward trend in application numbers. The remainder of the variance is due to lower than anticipated licensing and compliance, signs licensing, plumbing services, private certifier lodgements and planning & development certificate activity. This will be addresed at the next budget review.

Quality Development Customer & Community Services $1,339,000 U E P Higher than anticipated labour costs. The remainder of the variance is due to higher than anticipated depreciation costs for the Development Assessment Regulatory Transactions (DART) system. This will be addressed at the next budget review.

Quality Development Customer & Community Services $1,189,000 F C T Later than anticipated licence payment and expenditure on contractors relating to the OpenDoors Project. The remainder of the variance is due to lower than anticipated project labour.

Subtropical Design City Policy and Strategy $187,000 F E T Later than anticipated progress on the Heritage Incentive Scheme and Reservoir Conservation project.


Section 2.9

BRISBANE CITY COUNCILMoving Brisbane Program


Approved YTD Budget


to Date


to Date


September 2005 $ $ $ % $

OUTCOMES

RevenueTransport Network 54,006,251 50,665,792 3,340,459 70,835,000Public Transport 9,961,940 11,051,458 (1,089,518) 17,841,000Clean and Green Active Transport 7,294 0 7,294 0

63,975,485 61,717,250 2,258,235 3.66% 88,676,000

ExpensesTransport Network 186,211,808 188,048,294 (1,836,486) 256,091,238Public Transport 50,696,240 49,078,548 1,617,692 66,742,000Clean and Green Active Transport 2,809,878 3,085,775 (275,897) 4,172,000

239,717,926 240,212,617 (494,691) (0.21%) 327,005,238


Transport Network 118,888,762 155,992,634 (37,103,872) 205,993,000Public Transport 22,554,552 27,882,525 (5,327,973) 34,095,000Clean and Green Active Transport (70,127) 0 (70,127) 0

141,373,188 183,875,159 (42,501,971) (23.11%) 240,088,000

61

Section 2.9

BRISBANE CITY COUNCILReview of Moving Brisbane Program

Revenue

Moving Brisbane program has a favourable revenue variance of $2,258,000 (3.66%).

Expenses

Moving Brisbane program has a favourable expense variance of $495,000 (0.21%).

Capital

Moving Brisbane program is under budget by $42,502,000 (23.11%).

The Maintain and Improve the Network activity is under budget by $4,158,000 due to later than anticipated progress of the Footpath reconstruction and Bridge Rehabilitation projects. This will be addressed at the next budget review.

The Major Roads activity is under budget by $23,857,000 due to later than anticipated purchase of land for the North South Bypass Tunnel. The variance is also due to later than anticipated progress on the Green Bridge Project. This will be addressed at the next budget review.

The Construct (or Acquire) the Network activity is under budget by $8,209,000 due to the reallocation of capital expenditure to project expense for prior year projects. This variance is partly offset by contributed assets being higher than anticipated (refer offset in revenue). These will be addressed at the next budget review. The remainder of the variance is due to later than anticipated progress of the Major Roads, Traffic Improvements and Bikeway projects.


The Maintain and Improve the Network activity has an unfavourable variance of $10,004,000 due to higher than anticipated depreciation due to asset revaluations. This will be addressed at the next budget review.

The Major Road activity has a favourable variance of $9,839,000 due to later than anticipated progress on the Airport Link project. The variance is also due to later than anticipated progress on the Hale St Link project. This will be addressed at the next budget review.

The Construct (or Acquire) the Network activity has a favourable variance of $5,260,000 due to higher than anticipated contributed assets (refer offset in capital). This will be addressed at the next budget review.

The Major Road activity has an unfavourable variance of $5,267,000 due to later than anticipated contribution for the Airport Link Feasibility Study from the State Government.

The Maintain and Improve the Network activity has a favourable variance of $3,255,000 due to lower than anticipated losses on disposal of infrastructure assets. This will be addressed at the next budget review.

The Plan and Design Network activity has an unfavourable variance of $755,000 due to lower than anticipated revenue for Transport and Traffic Infrastructure Charges Plans for the Bulimba, Inner North Eastern Suburbs, Richlands and Wakerley areas. This will be addressed at the next budget review.

The Plan and Design the Network activity has a favourable variance of $1,486,000 due to later than anticipated progress on the Hamilton Road project.

62

SECTION 2.9

MOVING BRISBANE PROGRAM Explanation of Variances


TRANSPORT NETWORKTotal revenue variance $3,340,459 over

Total expense variance $1,836,486 under

Total capital variance $37,103,872 under

Plan and Design Network City Policy and Strategy $755,000 U R P Lower than anticipated revenue for Transport and Traffic Infrastructure Charges Plans for the Bulimba, Inner North Eastern Suburbs, Richlands and Wakerley areas. This will be addressed at the next budget review.

Plan and Design Network City Policy and Strategy $1,486,000 F E T Later than anticipated progress on the Hamilton Road project.

Plan and Design Network City Policy and Strategy $686,000 F C P Later than anticipated progress on the Hamilton Road project. This will be addressed at the next budget review.

Major Roads Major Infrastructure Project Office

$5,267,000 U R T Later than anticipated contribution for the Airport Link Feasibility Study from the State Government.


$9,839,000 F E T/P Later than anticipated progress on the Airport Link project. The variance is also due to later than anticipated progress on the Hale St Link project. This will be addressed at the next budget review.


$23,857,000 F C P Later than anticipated purchase of land for the North South Bypass Tunnel. The variance is also due to later than anticipated progress on the Green Bridge Project. This will be addressed at the next budget review.

Construct (or Acquire) the Network

City Policy and Strategy $5,260,000 F R P Higher than anticipated contributed assets (refer offset in capital). This will be addressed at the next budget review.


City Policy and Strategy $2,662,000 U E P/T The reallocation of capital expenditure to project expense for prior year projects (refer offset in capital). This will be addressed in the next budget review. This variance is partly offset by later than anticipated progress of the Boundary/Kelleher and Progress Road projects.


City Policy and Strategy $8,209,000 F C P/T The reallocation of capital expenditure to project expense for prior year projects (refer offset in expense). This variance is partly offset by contributed assets being higher than anticipated (refer offset in revenue). These will be addressed at the next budget review. The remainder of the variance is due to later than anticipated progress of the Major Roads, Traffic Improvements and Bikeway projects.


SECTION 2.9



TRANSPORT NETWORK (Cont.)

Landscape Maintenance Customer & Community Services

$122,000 F E T Later than anticipated progress of some asset maintenance programs.

Paved Road Surfaces Customer & Community Services

$1,698,000 F E T Lower than anticipated Local Asset Services maintenance costs due to a higher level of costs being capitalised.

Grass Cutting Streets Customer & Community Services

$482,000 F E T Lower than anticipated grass cutting costs due to weather conditions.

Kerb & Channel Maintenance Customer & Community Services

$882,000 U E T Higher than anticipated maintenance costs due to a lower level of costs being capitalised.

Chemical Control Streets Customer & Community Services

$105,000 U E T Earlier than anticipated progress associated with the delivery of the program.

Footpath Surface Maintenance Customer & Community Services

$223,000 U E T Higher than anticipated maintenance costs due to a lower level of costs being capitalised.

Street Cleaning Customer & Community Services

$257,000 U E T Higher than anticipated ad-hoc cleans across the city.

Unpaved Road Surfaces Customer & Community Services

$235,000 F E T Later than anticipated progress for this program.

Road Surface Inventory Customer & Community Services

$122,000 F E P Later than anticipated progress for this program. This will be addressed at the next budget review.

City Lighting Customer & Community Services

$101,000 F R T Earlier than anticipated receipt of revenue from Energex associated with the cost shared program.

City Lighting Customer & Community Services

$807,000 F E P/T Lower than anticipated energy costs and later than anticipated commencement of some shared cost projects with the Mains Roads Department. This will be addressed at the next budget review. The remaining variance is due to later than anticipated progress of shared lighting projects.

Maintain and Improve the Network

City Policy and Strategy $3,255,000 F R P Lower than anticipated losses on disposal of infrastructure assets. This will be addressed at the next budget review.


SECTION 2.9



TRANSPORT NETWORK (Cont.)


City Policy and Strategy $10,004,000 U E P Higher than anticipated depreciation due to asset revaluations. This will be addressed at the next budget review.


City Policy and Strategy $4,158,000 F C P Later than anticipated progress of the Footpath reconstruction and Bridge Rehabilitation projects. This will be addressed at the next budget review.

Riverwalk Maintenance City Policy and Strategy $130,000 F E T Later than anticipated progress in the Riverwalk Maintenance program.

Efficient Road Network Operation


$230,000 F R P Higher than anticipated truck parking infringements and bad debts recovered by the State Penalties Enforcement Registry (SPER). This will be addressed at the next budget review. This is partly offset by lower than anticipated general parking infringements.

Efficient Road Network Operation


$502,000 F E P Lower than anticipated labour and operational costs. This will be addressed at the next budget review.

Manage the Transport Network City Policy and Strategy $485,000 F R P Higher than anticipated Work Zone Permit revenue. This will be addressed at the next budget review.

Manage the Transport Network City Policy and Strategy $536,000 F E P Later than anticipated progress on the Brisbane Metropolitan Traffic Management Centre and New Traffic Signals System projects. This will be addressed at the next budget review.

Manage the Transport Network City Policy and Strategy $115,000 F C T Later than anticipated progress of the Story Bridge CCTV project.

PUBLIC TRANSPORTTotal revenue variance $1,089,518 under

Total expense variance $1,617,692 over

Total capital variance $5,327,973 under

Provide Bus Infrastructure City Policy and Strategy $302,000 U E P Re-classification of prior year capital expenditure to project expense for the Virginia Compressed Natural Gas installation (refer offset in capital). This will be addressed at the next budget review.


SECTION 2.9



PUBLIC TRANSPORT (Cont.)

Provide Bus Infrastructure City Policy and Strategy $4,073,000 F C P/T Re-classification of prior year capital expenditure to project expense for the Virginia Compressed Natural Gas installation (refer offset in expense). This will be addressed at the next budget review. The variance is also due to later than anticipated progress on the Bus Acquisition and Toowong CNG projects.

Provide Bus Services City Policy and Strategy $257,000 U R P Greater than anticipated loss on disposal of buses. This will be addressed at the next budget review.

Provide Bus Services City Policy and Strategy $259,000 U E P/T Higher than anticipated bus depreciation. This will be addressed at the next budget review. This is partly offset by a slower than anticipated start to the Public Transport Facilities Maintenance program.

Provide Ferry Infrastructure City Policy and Strategy $105,000 F C T Later than anticipated progress of the Ferry Facilities Replacement project.

Provide Ferry Services City Policy and Strategy $897,000 U R P Lower than anticipated Translink payments. This will be addressed at the next budget review.

Provide Ferry Services City Policy and Strategy $430,000 U E P Higher than anticipated ferry services costs. This will be addressed at the next budget review.

Integrate the Various Modes City Policy and Strategy $477,000 F E P Later than anticipated progress of the Bus Route Hardware project. This will be addressed at the next budget review.

Provide Travel Information City Policy and Strategy $1,121,000 U E P Reallocation of prior year capital expenditure to project expense (refer offset in capital). This will be addressed at the next budget review.

Provide Travel Information City Policy and Strategy $1,144,000 F C P Reallocation of prior year capital expenditure to project expense (refer offset in expense). This will be addressed at the next budget review.

CLEAN AND GREEN ACTIVE TRANSPORTTotal revenue variance $7,294 over

Total expense variance $275,897 under

Total capital variance $70,127 under

Provide Facilities for Active Transport

City Policy and Strategy $183,000 F E P Later than anticipated progress on the Drop Off Bay project due to construction of the Inner Northern Busway. This will be addressed at the next budget review.


Section 2.10

BRISBANE CITY COUNCILEnvironment and Parks Program


Approved YTD Budget


to Date


to Date


September 2005 $ $ $ % $

OUTCOMES

RevenueAttractive and Shady City 65,942 0 65,942 0Biodiverse City 9,472,298 9,354,000 118,298 12,498,000City of Diverse Parks 10,824,330 11,686,636 (862,306) 14,892,000Council Environmental Performance 0 0 0 0

20,362,570 21,040,636 (678,066) (3.22%) 27,390,000

ExpensesAttractive and Shady City 6,759,556 6,416,440 343,116 8,710,330Biodiverse City 1,890,701 2,180,200 (289,499) 2,965,000City of Diverse Parks 46,869,133 50,645,511 (3,776,378) 71,431,071Council Environmental Performance 171,476 235,150 (63,674) 312,500

55,690,867 59,477,301 (3,786,434) (6.37%) 83,418,901


Attractive and Shady City 57,582 0 57,582 0Biodiverse City 4,474,226 5,744,000 (1,269,774) 10,244,000City of Diverse Parks 8,177,201 11,855,220 (3,678,019) 21,389,000Council Environmental Performance 0 0 0 0

12,709,008 17,599,220 (4,890,212) (27.79%) 31,633,000

67

Section 2.10

BRISBANE CITY COUNCILReview of Environment and Parks Program

Revenue

Environment and Parks program has an unfavourable revenue variance of $678,000 (3.22%).

Expenses

Environment and Parks program has a favourable expense variance of $3,786,000 (6.37%).

Capital

Environment and Parks program is under budget by $4,890,000 (27.79%).


The Parks Planning and Policy activity has an unfavourable variance of $671,000 due to lower than anticipated Infrastructure Charges Plan developer contributions.

The Parks Maintenance and Development activity has a favourable variance of $2,230,000 due to lower than anticipated depreciation. The variance is also due to lower than anticipated maintenance required for community facilities. The remainder is due to less than anticipated spending on Rowing Recreation Infrastructure, Sports Precinct Plan and Development and Playground Rehabilitation projects which will be addressed at the next budget review.

The Open Space Operations activity has a favourable variance of $1,118,000 due to later than anticipated progress on some asset maintenance programs. The remainder is due to less than anticipated expenditure on potable water charges resulting from the water restrictions which will be addressed at the next budget review.

The Parks Maintenance and Development activity is under budget by $800,000 due to lower than anticipated spending on Toilet Rehabilitation Program, Sportsfield and Hardcourt Condition Rehabilitation, Metro and District Playgrounds and Key City Parks Upgrade (Camellia Arbour) projects. This will be addressed at the next budget review.

The Bushland Acquisition Program activity is over budget by $488,000 mainly due to timing of settlements for bushland acquisitions.

The Parks Planning and Policy activity is under budget by $3,000,000 due to a reallocation between project expense and capital for prior year projects being capitalised and timing in the acquisition of land through negotiation processes. This is partly offset by an increase in the level of work requests received for the Wards Parks Trust Fund. These will be addressed at the next budget review.

The Bushland Acquisition Program activity is under budget by $1,270,000 due to timing of settlements for bushland acquisitions. This will be addressed at the next budget review.

68

SECTION 2.10

ENVIRONMENT AND PARKS PROGRAM Explanation of Variances


ATTRACTIVE AND SHADY CITYTotal revenue variance $65,942 overTotal expense variance $343,116 overTotal capital variance $57,582 over

Private Land Planting and Landscape Policy

City Policy and Strategy $179,000 F E T Later than anticipated commencement of the Green Choice Gardening initiatives.

Managing Trees on Public Land City Policy and Strategy $522,000 U E P Higher than anticipated demand for street tree maintenance. This will be addressed at the next budget review.

BIODIVERSE CITYTotal revenue variance $118,298 overTotal expense variance $289,499 underTotal capital variance $1,269,774 under

Protection Through Planning and Regulation

City Policy and Strategy $118,000 F E T A reallocation between activities (refer offset in Bushland Acquisition Program) resulting from general ledger restructuring.

Protect Natural Assets Corporate Services $117,000 F R T Higher than anticipated revenue due to an increase in the number of rateable lots as a result of changes to land use.

Bushland Acquisition Program City Policy and Strategy $127,000 U E T A reallocation between activities (refer offset in Protection through Planning and Regulation) resulting from general ledger restructuring.

Bushland Acquisition Program City Policy and Strategy $1,270,000 F C P Timing of settlements for bushland acquisitions. This will be addressed at the next budget review.

Fire Pest and Land Management for Conservation

City Policy and Strategy $187,000 F E T Later than anticipated progress in the Wipe out Weeds project caused by a reallocation of provider resources (flood management response in waterways).

CITY OF DIVERSE PARKSTotal revenue variance $862,306 underTotal expense variance $3,776,378 underTotal capital variance $3,678,019 under

Parks Planning and Policy City Policy and Strategy $671,000 U R T Lower than anticipated Infrastructure Charges Plan developer contributions.


SECTION 2.10



CITY OF DIVERSE PARKS (Cont.)

Parks Planning and Policy City Policy and Strategy $699,000 U E P Higher than anticipated spending on Wards Parks Trust Fund which is partly offset by lower than anticipated spending on the new Ward Community Fund. This will be addressed at the next budget review. The remainder is due a reallocation between expense and capital for prior year projects being capitalised (refer offset in capital).

Parks Planning and Policy City Policy and Strategy $3,000,000 F C P A reallocation between project expense and capital for prior year projects being capitalised (refer offset in expense) and timing in the acquisition of land through negotiation processes. This is partly offset by an increase in the level of work requests received for the Wards Parks Trust Fund. These will be addressed at the next budget review.

Open Space Operations Customer & Community Services

$144,000 U R P The transfer of the loss on disposal of assets from Fleet Product Group to Local Asset Services. This will be addressed at the next budget review.

Open Space Operations Customer & Community Services

$1,118,000 F E T/P Later than anticipated progress on some asset maintenance programs. The remainder is due to less than anticipated expenditure on potable water charges resulting from the water restrictions which will be addressed at the next budget review.

Parks Maintenance and Development

City Policy and Strategy $2,230,000 F E T/P Lower than anticipated depreciation. The variance is also due to lower than anticipated maintenance required for community facilities. The remainder is due to less than anticipated spending on Rowing Recreation Infrastructure, Sports Precinct Plan and Development and Playground Rehabilitation projects which will be addressed at the next budget review.

Parks Maintenance and Development

City Policy and Strategy $800,000 F C P Lower than anticipated spending on Toilet Rehabilitation Program, Sportsfield and Hardcourt Condition Rehabilitation, Metro and District Playgrounds and Key City Parks Upgrade (Camellia Arbour) projects. This will be addressed at the next budget review.

Bushland Management Customer & Community Services

$325,000 F E T Later than anticipated progress on Bushland Infrastructure asset maintenance programs.

Natural Area Parks Management City Policy and Strategy $503,000 F E T/P Later than anticipated progress of the Natural Area Access schedule. The remainder is due to a small carryover for minor Tract/Trail Natural Area projects which will be addressed at the next budget review.

Natural Area Parks Management City Policy and Strategy $121,000 U C T Earlier than anticipated progress of the Natural Area Access schedule.


SECTION 2.10



CITY OF DIVERSE PARKS (Cont.)

Manage Botanical Gardens Mt Coot-tha


$253,000 F E T/P Later than anticipated progress on retaining wall reconstruction, wedding shelters, vinyl flooring to the auditorium and repairs to car park and paths works as well as less than anticipated expenditure on potable water charges resulting from the water restrictions. The potable water charges will be addressed at the next budget review.



72

Section 2.11

BRISBANE CITY COUNCILHealthy Waterways Program

For the Period Ended March 2006 Actual to Date

Approved YTD Budget


to Date


to Date


September 2005 $ $ $ % $

OUTCOMES

RevenueFlood Management 17,765,044 14,436,463 3,328,581 16,490,000Focus on the River Bay and Waterways 2,446,877 2,880,000 (433,123) 4,133,000Healthy Waterways 0 0 0 260,000

20,211,921 17,316,463 2,895,458 16.72% 20,883,000

ExpensesFlood Management 40,312,399 37,794,355 2,518,044 54,532,500Focus on the River Bay and Waterways 4,672,778 5,698,297 (1,025,519) 7,985,000Healthy Waterways 5,173,787 5,168,802 4,985 7,547,000

50,158,963 48,661,454 1,497,509 3.08% 70,064,500


Flood Management 27,574,954 26,162,353 1,412,601 37,554,000Focus on the River Bay and Waterways 1,501,648 1,821,480 (319,832) 2,555,000Healthy Waterways (704,052) 267,926 (971,978) 366,000

28,372,550 28,251,759 120,791 0.43% 40,475,000

73

Section 2.11

BRISBANE CITY COUNCILReview of Healthy Waterways Program

Revenue

Healthy Waterways program has a favourable revenue variance of $2,895,000 (16.72%).

Expenses

Healthy Waterways program has an unfavourable expense variance of $1,498,000 (3.08%).

Capital

Healthy Waterways program is over budget by $121,000 (0.43%).

The Drainage Rehabilitation activity is under budget by $1,636,000 due to later than anticipated resolution of permits and other property related issues. The remainder is due to later than anticipated progress on the Rose St, Wooloowin and Wahcumba St, Dutton Park projects. This will be addressed at the next budget review.

The Prevent Pollution of Stormwater activity is under budget by $972,000 due to a reallocation between capital and project expense for prior and current year projects (refer offset in expense). This will be addressed at the next budget review.

The Local Drainage activity is under budget by $926,000 due to a reallocation between capital and project expense for current and prior year projects. The remainder is due to later than anticipated progress of the Longland Street project which will be addressed at the next budget review.

The Plan for Future Infrastructure activity has an unfavourable variance of $1,859,000 due to lower than anticipated Inner North East Suburbs Infrastructure Charges Plan revenue. This will be addressed at the next budget review.

The Maintain and Rehabilitate Open Drainage activity has an unfavourable variance of $1,379,000 due to a reallocation of expenditure in this activity to Customer and Community Services Division (refer Waterways Rehabilitation) . This will be addressed at the next budget review.

The Major Drainage activity has an unfavourable variance of $1,171,000 due to a reallocation between capital and project expense for current and prior year projects (refer offset in capital). This will be addressed at the next budget review.

The Managed Contributed Stormwater Assets activity is over budget by $7,388,000 due to higher than anticipated developer contributed assets. This will be addressed at the next budget review.

The Waterways Rehabilitation activity has a favourable variance of $767,000 due to reallocation of Service Development budgeted internal revenue to be addressed at the next budget review.

The Major Drainage activity is under budget by $2,264,000 due to a reallocation between capital and project expense for current and prior year projects (refer offset in expense). The remainder is due to lower than anticipated expenditure on the Cannery Creek project which will be addressed at the next budget review.


The Managed Contributed Stormwater Assets activity has a favourable variance of $7,385,000 due to higher than anticipated developer contributions. This will be addressed at the next budget review.

The Manage and Maintain Assets activity has an unfavourable variance of $2,320,000 due to higher than anticipated losses on disposal associated with the decommissioning of stormwater assets. This will be addressed at the next budget review.

The Prevent Pollution of Stormwater activity has an unfavourable variance of $1,084,000 due to a reallocation between capital and project expense for prior and current year projects (refer offset in capital). This will be addressed at the next budget review. The remainder is due to earlier than anticipated progress of the program.

74

SECTION 2.11

HEALTHY WATERWAYS PROGRAM Explanation of Variances


FOCUS ON THE RIVER BAY AND WATERWAYSTotal revenue variance $433,123 underTotal expense variance $1,025,519 underTotal capital variance $319,832 under

Moreton Bay Waterways and Catchment Management

City Policy and Strategy $465,000 U R T Later than anticipated delivery of the science tasks of the Moreton Bay Waterways & Catchments Partnership. The project is fully funded by Government and Industry (refer offset in expense).

Moreton Bay Waterways and Catchment Management

City Policy and Strategy $465,000 F E T Later than anticipated delivery of the science tasks of the Moreton Bay Waterways & Catchments Partnership. The project is fully funded by Government and Industry (refer offset in revenue).

Wharves Jetties and Pontoons City Policy and Strategy $199,000 F C T Later than anticipated progress of the Wharf,Jetty and Pontoon program.

Sea and River Walls City Policy and Strategy $121,000 F C T Later than anticipated progress of the Corso Bank Stabilisation project. The remainder is due to later than anticipated commencement of the Powerhouse project.

Waterways and Corridor Protection

City Policy and Strategy $333,000 F E T Later than anticipated progress of Integrated Water Management planning.

HEALTHY WATERWAYSTotal expense variance $4,985 overTotal capital variance $971,978 under

SQIDS Customer & Community Services

$203,000 F E T Later than anticipated progress with the delivery of the maintenance program.

Waterways Rehabilitation Customer & Community Services

$767,000 F E T Reallocation of Service Development budgeted internal revenue (Maintain and Rehabilitate Open Drainage Program) to be addressed at the next budget review.

Prevent Pollution of Stormwater City Policy and Strategy $1,084,000 U E P/T A reallocation between capital and project expense for prior and current year projects (refer offset in capital). This will be addressed at the next budget review. The remainder is due to earlier than anticipated progress of the program.

Prevent Pollution of Stormwater City Policy and Strategy $972,000 F C P A reallocation between capital and project expense for prior and current year projects (refer offset in expense). This will be addressed at the next budget review.


SECTION 2.11



FLOOD MANAGEMENTTotal revenue variance $3,328,581 overTotal expense variance $2,518,044 overTotal capital variance $1,412,601 over

Drainage Investigation and Design

City Policy and Strategy $152,000 U E T A reallocation between capital and project expense for current and previous year Stormwater Drainage Investigation and Design projects (refer offset in capital).

Drainage Investigation and Design

City Policy and Strategy $360,000 F C T A reallocation between capital and project expense for current and previous year Stormwater Drainage Investigation and Design projects (refer offset in expense). The remainder is due to later than anticipated progress of the Design program.

Gather and Provide Flood Information

City Policy and Strategy $450,000 F E P Later than anticipated progress with the Brisbane Valley Damage Minimisation Study. This will be addressed at the next budget review.

Reconstruct Gullies City Policy and Strategy $104,000 F E T Later than anticipated progress with gully reconstruction works.

Local Drainage City Policy and Strategy $471,000 U E P A reallocation between capital and project expense for current and prior year projects (refer offset in capital). This will be addressed at the next budget review.

Local Drainage City Policy and Strategy $926,000 F C P A reallocation between capital and project expense for current and prior year projects (refer offset in expense). The remainder is due to later than anticipated progress of the Longland Street project which will be addressed at the next budget review.

Major Drainage City Policy and Strategy $1,171,000 U E P A reallocation between capital and project expense for current and prior year projects (refer offset in capital). This will be addressed at the next budget review.

Major Drainage City Policy and Strategy $2,264,000 F C P A reallocation between capital and project expense for current and prior year projects (refer offset in expense). The remainder is due to lower than anticipated expenditure on the Cannery Creek project which will be addressed at the next budget review.

Plan for Future Infrastructure City Policy and Strategy $1,859,000 U R P Lower than anticipated Inner North East Suburbs Infrastructure Charges Plan revenue. This will be addressed at the next budget review.

Plan for Future Infrastructure City Policy and Strategy $223,000 F E T Later than anticipated progress with the Stormwater Infrastructure Charges Plans program.


SECTION 2.11



FLOOD MANAGEMENT (Cont.)

Plan for Future Infrastructure City Policy and Strategy $346,000 F C T Later than anticipated progress with the Stormwater Infrastructure Charges Plans program.

Managed Contributed Stormwater Assets

City Policy and Strategy $7,385,000 F R P Higher than anticipated developer contributions. This will be addressed at the next budget review.

Managed Contributed Stormwater Assets

City Policy and Strategy $7,388,000 U C P Higher than anticipated developer contributed assets. This will be addressed at the next budget review.

Open Drainage Customer & Community Services

$339,000 U E T Earlier than anticipated delivery of the maintenance program.

Maintain and Rehabilitate Open Drainage

City Policy and Strategy $1,379,000 U E P A reallocation of expenditure in this activity to Customer and Community Services Division (Waterways Rehabilitation Program) . This will be addressed at the next budget review.

Drainage Rehabilitation City Policy and Strategy $1,636,000 F C T/P Later than anticipated resolution of permits and other property related issues. The remainder is due to later than anticipated progress on the Rose St, Wooloowin and Wahcumba St, Dutton Park projects. This will be addressed at the next budget review.

Mitigate Flooding City Policy and Strategy $181,000 F E P Later than anticipated progress in obtaining a development application for O’Callaghan Park. This will be addressed at the next budget review.

Manage and Maintain Assets City Policy and Strategy $2,320,000 U R P Higher than anticipated losses on disposal associated with the decommissioning of stormwater assets. This will be addressed at the next budget review.

Manage and Maintain Assets City Policy and Strategy $124,000 F E P Later than anticipated progress in the Infrastructure Information Collection and Distribution project. This will be addressed at the next budget review.

Manage and Maintain Assets City Policy and Strategy $402,000 F C P Later than anticipated progress in the Infrastructure Information Collection and Distribution and the Ellipse Enhancement projects. This will be addressed at the next budget review.



78

Section 2.12

BRISBANE CITY COUNCILWater Supply and Sewerage Program

For the Period Ended March 2006 Actual to

DateApproved

YTD Budget


to Date


to Date


September 2005 $ $ $ % $

OUTCOMES

RevenueSupply Management 9,591 0 9,591 0Sustainable Water Resources 60,328 57,408 2,920 100,000Infrastructure Provision 73,912,173 78,454,091 (4,541,918) 111,871,000

73,982,092 78,511,499 (4,529,407) (5.77%) 111,971,000

ExpensesSupply Management (158,968,301) (158,908,839) (59,462) (216,127,000)Sustainable Water Resources 6,432,087 5,453,778 978,309 4,229,000Infrastructure Provision 90,585,988 86,315,349 4,270,639 118,152,000

(61,950,226) (67,139,712) 5,189,486 (7.73%) (93,746,000)


Supply Management 0 0 0 0Sustainable Water Resources 1,535,762 2,273,516 (737,754) 8,894,000Infrastructure Provision 85,495,058 86,797,790 (1,302,732) 114,914,000

87,030,821 89,071,306 (2,040,485) (2.29%) 123,808,000

79

Section 2.12

BRISBANE CITY COUNCILReview of Water Supply and Sewerage Program

Revenue

Expenses

Capital

Water Supply and Sewerage capital expenditure program is under budget by $2,040,000 (2.29%)

The City Development activity is over budget by $3,818,000 due to earlier than anticipated resolution of contract claims, additional funding requirement for Heroes Ave project and delivery of city development major and minor works programs. This will be addressed at the next budget review. The variance is also due to a reallocation between capital and project expense on City Development Major and Minor Works programs (refer offset in expense).

The Manage Total Water Cycle activity has an unfavourable variance of $965,000 due to higher than anticipated rainwater tank rebates. This is partly offset by later than anticipated delivery of drought initiatives which will be addressed at the next budget review.

The Reduce Environmental Impacts activity has a favourable variance of $879,000 due to later than anticipated progress by the consultant undertaking sewerage overflow wet weather modelling. The remainder is due to a reallocation between capital and project expense on the Reduce Environmental Impacts Program (refer offset in capital). These will be addressed in the next budget review.

The Manage Water and Sewerage Contributed Assets activity is under budget by $4,326,000 due to lower than anticipated receipt of developer contributed assets to date (refer offset in revenue). This will be addressed at the next budget review.

The Reduce Environmental Impacts activity is under budget by $2,243,000 due to later than anticipated progress of the BWEA Wynnum Wastewater Treatment Upgrade. This is partly offset by earlier than anticipated delivery of the Sewerage System Performance Improvement project and by a reallocation between capital and project expense on the Reduce Environmental Impacts Program (refer offset in expense). The reallocation will be addressed in the next budget review.

The City Development activity has a favourable variance of $2,539,000 due to higher than anticipated developer headworks contributions.

The Total Asset Management Water and Sewerage activity has an unfavourable variance of $4,661,000 due to higher than anticipated depreciation on water and sewerage assets caused by higher than anticipated movements from asset revaluations and additions. This will be addressed at the next budget review.

Water Supply and Sewerage has an unfavourable expense variance of $5,189,000 (7.73%).


Water Supply and Sewerage has an unfavourable revenue variance of $4,529,000 (5.77%).

The Manage Water and Sewerage Contributed Assets activity has an unfavourable variance of $4,326,000 due to lower than anticipated receipt of developer contributed assets to date (refer offset in capital). This will be addressed at the next budget review.

The Reduce Environmental Impacts activity has an unfavourable variance of $1,530,000 due to later than anticipated receipt of State Government subsidies towards the Brisbane Water Enviro Alliance Wastewater Treatment Upgrade projects.

80

SECTION 2.12

WATER SUPPLY & SEWERAGE PROGRAM Explanation of Variances


SUPPLY MANAGEMENTTotal revenue variance $9,591 overTotal expense variance $59,462 under

Provide Water Services City Policy and Strategy $245,000 F E P Lower than anticipated customer service obligations for water pensioner remissions from reduced water consumption as a consequence of the restrictions. This will be addressed at the next budget review.

Provide Sewerage Services City Policy and Strategy $186,000 U E P Higher than anticipated customer service obligations for sewerage pensioner remissions. This will be addressed at the next budget review.

SUSTAINABLE WATER RESOURCESTotal revenue variance $2,920 overTotal expense variance $978,309 overTotal capital variance $737,754 under

Manage Total Water Cycle City Policy and Strategy $965,000 U E T/P Higher than anticipated rainwater tank rebates. This is partly offset by later than anticipated delivery of drought initiatives which will be addressed at the next budget review.

Manage Total Water Cycle City Policy and Strategy $738,000 F C T/P Later than anticipated delivery of drought contingency projects. The remainder is due to later than anticipated progress on the Brisbane Aquifer Extraction project which will be addressed at the next budget review.

PROVIDE WATER & SEWERAGE INFRASTRUCTURETotal revenue variance $4,541,918 underTotal expense variance $4,270,639 overTotal capital variance $1,302,732 under

Total Asset Management Water and Sewerage

City Policy and Strategy $1,225,000 U R P Higher than anticipated activity associated with the decommissioning of water and sewerage assets. This will be addressed at the next budget review.

Total Asset Management Water and Sewerage

City Policy and Strategy $4,661,000 U E P Higher than anticipated depreciation on water and sewerage assets caused by higher than anticipated movements from asset revaluations and additions. This will be addressed at the next budget review.

Design Water and Sewerage Capital Works

City Policy and Strategy $331,000 U E P A reallocation between capital and project expense on water and sewerage project design (refer offset in capital). This will be addressed at the next budget review.


SECTION 2.12



PROVIDE WATER & SEWERAGE INFRASTRUCTURE (Cont.)

Design Water and Sewerage Capital Works

City Policy and Strategy $403,000 F C P/T A reallocation between capital and project expense on water and sewerage project design (refer offset in expense). This will be addressed at the next budget review. The remainder is due to later than anticipated progress of the program.

Reduce Environmental Impacts City Policy and Strategy $1,530,000 U R T Later than anticipated receipt of State Government Subsidies towards the Brisbane Water Enviro Alliance wastewater treatment upgrade projects.

Reduce Environmental Impacts City Policy and Strategy $879,000 F E P Later than anticipated progress by the consultant undertaking sewerage overflow wet weather modelling. The remainder is due to a reallocation between capital and project expense on the Reduce Environmental Impacts Program (refer offset in capital). These will be addressed in the next budget review.

Reduce Environmental Impacts City Policy and Strategy $2,243,000 F C T/P Later than anticipated progress of the BWEA Wynnum Wastewater Treatment Upgrade. This is partly offset by earlier than anticipated delivery of the Sewerage System Performance Improvement project and by a reallocation between capital and project expense on the Reduce Environmental Impacts Program (refer offset in expense). The reallocation will be addressed in the next budget review.

City Development City Policy and Strategy $2,539,000 F R T Higher than anticipated developer headworks contributions.

City Development City Policy and Strategy $319,000 F E T A reallocation between capital and project expense on City Development Major and Minor Works programs (refer offset in capital).

City Development City Policy and Strategy $3,818,000 U C P/T Earlier than anticipated resolution of contract claims, additional funding requirement for Heroes Ave project and delivery of city development major and minor works programs. This will be addressed at the next budget review. The variance is also due to a reallocation between capital and project expense on City Development Major and Minor Works programs (refer offset in expense).

Manage Water and Sewerage Contributed Assets

City Policy and Strategy $4,326,000 U R P Lower than anticipated receipt of developer contributed assets to date (see offset in capital). This will be addressed at the next budget review.

Manage Water and Sewerage Contributed Assets

City Policy and Strategy $4,326,000 F C P Lower than anticipated receipt of developer contributed assets to date (see offset in revenue). This will be addressed at the next budget review.


SECTION 2.12



PROVIDE WATER & SEWERAGE INFRASTRUCTURE (Cont.)

Maintain Customer Service Standards

City Policy and Strategy $473,000 U E T Earlier than anticipated progress of the Minor Works program.

Maintain Customer Service Standards

City Policy and Strategy $1,947,000 U C P Earlier than anticipated progress of work for the Manchester Dam rehabilitation project and the Water Main Renewals Program. This will be addressed at the next budget review.



Prepared by Corporate Accounting and Tax, Corporate Services Division

SECTION 3

BUSINESS UNIT

RESULTS

84

BRISBANE WATER

85

MARCH 2006QUARTERLY REPORT

1. Vision

“Our vision is to be a recognised leader in providing integrated water solutions, which add value to our community, customers and environment.”

2. Performance Targets

Annual

Actual Budget Budget

Return on Assets (NOPBT as a % of Total Assets) 26.71% 31.34% 31.39%

35.50% 38.88% 49.45%

Profit % (NOPBT as a % of Total Revenue) 8.56% 9.49% 9.30%

3. Financial Summary

Annual

Budget $000

Variance $000

Budget $000

Revenue 408,911 (9,352) 557,567

Expenses 370,101 (4,726) 505,738

Profit before Tax 38,810 (4,626) 51,829

Revenue

Year to date water revenue is below budget by $14m due to lower consumption as a result of water restrictions imposed in response to the continuing drought.This has been partially offset by an increase in access charges for both water and sewerage products,due to higher than budgeted property numbers.

Year to date Asset Creation revenue is $2m above budget primarily due to early expenditure on theWater Supply Capacity Improvement Program (fireflow supply) and other various projects.

Expenses

Materials & Services costs were below budget due to lower raw water purchase, electricity and chemicals costs in line with the lower water consumption. This is partly offset by higher Asset Creationexpenses.

365,375

34,184

Return on Shareholders Funds (NOPAT as a % of Total Equity)

Year to Date

Year to Date

Actual $000

399,559

86

BRISBANE WATERINCOME STATEMENT

Revenue

Water 136,942 150,845 202,314 Sewerage 166,544 164,151 223,978 BCC - Asset Creation 79,984 77,959 109,740 Water Industry Services 16,089 15,956 21,535 TOTAL REVENUE 399,559 408,911 557,567

Expenses

Employee costs 48,010 48,526 67,037 Materials and contracts 131,949 136,665 187,661 Equipment charges 9,611 10,119 13,720 Depreciation and amortisation 1,585 1,358 1,813 Franchise Fee 165,424 165,424 224,807 Other 8,796 8,009 10,700 TOTAL EXPENSES 365,375 370,101 505,738

Operating Profit before Income Tax 34,184 38,810 51,829

Income Tax Expense (10,233) (11,645) (15,549)

Operating Profit after Income tax 23,951 27,165 36,280


YTD Actual $000

YTD Budget $000

Annual Budget $000

87

BRISBANE WATERAPPROPRIATION AND RESERVE TRANSFERS STATEMENT

Operating Surplus/Deficit 23,951 27,165 36,280

Accumulated Surplus at Beginning of the Year 57,213 57,213 57,213

Accumulated Surplus available for transfer 81,164 84,378 93,493

Transfers to/from Capital and Reserves - - -

Accumulated Surplus available for Distribution 81,164 84,378 93,493

Dividends paid/payable - - (29,024)

Accumulated Surplus/Deficit at end of Period 81,164 84,378 64,469


YTD Actual $000

YTD Budget $000

Annual Budget $000

88

BRISBANE WATERBALANCE SHEET

A S S E T S

CURRENT ASSETSCash Equivalents 68,347 57,565 Receivables 30,485 30,452 Inventories 1,319 1,360 Accrued Revenue 43,097 44,532 Other 8,600 8,887 Total Current Assets 151,848 142,796

NON-CURRENT ASSETSProperty, Plant & Equipment 6,516 12,850 Infrastructure & Other Property 9,667 9,450 Capital WIP 2,641 - Other - - Total Non-Current Assets 18,824 22,300

TOTAL ASSETS 170,672 165,096

L I A B I L I T I E S

CURRENT LIABILITIESCreditors 9,044 9,304 Accrued Expenses 40,284 49,172 Provisions 3,301 3,165 Unearned Revenue 16,305 18,158 Other - - Total Current Liabilities 68,934 79,799

NON-CURRENT LIABILITIES Creditors & Borrowings - - Provisions 11,786 11,930 Other - - Total Non-Current Liabilities 11,786 11,930

TOTAL LIABILITIES 80,720 91,729

NET ASSETS 89,952 73,367

E Q U I T Y

Capital Account & Reserves 8,788 8,898 Other Reserves - - Accumulated Surplus/(Loss) 81,164 64,469

TOTAL EQUITY 89,952 73,367


YTD Actual $000

Annual Budget $000

89


90

BRISBANE TRANSPORT

91


1. Goal

attractive alternative options to change people’s travel habits.”


Actual YTD

Bus Patronage - Number of passengers carried 43.150 million

Patronage for the third quarter has shown an increase of 12.02% over last year. This is ahead of the YTD target of 41.084 million boardings. Building on the very successful introduction of BUZ services, air conditioning, and integrated ticketing, patronage has again continued to increase significantly this year.


Dollars in thousands Annual

Budget $000

Variance $000

Budget $000

Revenue 122,552 5,812 166,481

Expenses 123,344 3,710 167,599

Operating surplus before tax (792) 2,102 (1,118)

Brisbane Transport has achieved a positive result that is ahead of budget. The significant items impacting revenue and expenses are as follows:

Revenue

Brisbane Transport has a favourable revenue variance of $5,812,000 (4.7%), with the key factors being:

Agreement with Translink on the Base Contract Fee funding arrangements for 2005-06. A favourable variance of $2,243,000 has been recognised at March following the agreement with Translink. Additional funding of $2,436,000 has been received from Queensland Transport under contract arrangements to offset the higher fuel costs incurred.

Interest income is ahead of budget by $426,000 due to more favourable cash flows than anticipated.

Special Events and Charter revenue is ahead of budget by $513,000 as a result of increased activity.

Expenses

Brisbane Transport has an unfavourable expense variance of $3,710,000 (3.0%).

EBA6 back pay was paid in the March Quarter and this is the primary reason for the labour budget variance, as EBA6 was settled at a figure higher than budget. New services, funded by Translink, also account for part of the labour budget variance. Fuel costs are greater than budget due to priceincreases, but have been offset by the Agreement with Translink whereby they carry the price risk abovebudget as reflected in the revenue commentary.

128,364

127,054

1,310

"Brisbane Transport will deliver quality public transport services, efficiently and effectively, which provide

55.306 million

Actual $000

2005/06 Annual Target

Year to Date

92

BRISBANE TRANSPORTINCOME STATEMENT

Revenue

External 89,582 85,115 115,458Internal 1,080 692 941Community Service Obligations 33,634 33,685 45,777Interest Revenue 905 478 650Other Revenue 3,164 2,582 3,655

(1) 0 0TOTAL REVENUE 128,364 122,552 166,481

Expenses

Materials and Services 30,755 28,487 38,960Employee Costs 74,464 72,800 98,468Equipment Charges 19,349 19,296 26,431Depreciation/Amortisation 1,503 1,616 2,196Finance Costs 74 74 101Competitive Neutrality Costs 17 18 25Other Expenses 892 1,053 1,418TOTAL EXPENSES 127,054 123,344 167,599

Operating Profit/(Loss) before Income Tax 1,310 (792) (1,118)

Income Tax Expense 393 0 0

Operating Profit/(Loss) after Income Tax 917 (792) (1,118)


YTD Actual $000

YTD Budget $000

Annual Budget $000

Gain/(Loss) on disposal of property, plant and equipment

93

BRISBANE TRANSPORTAPPROPRIATION AND RESERVE TRANSFERS STATEMENT

Operating Surplus/(Deficit) 917 (1,118)

Accumulated Surplus at beginning of Year (757) (808)

Accumulated Surplus available for transfer 160 (1,926)

Transfers (to)/from Capital and Reserves 0 0

Dividend 0 0

Accumulated Surplus/Deficit at end of Period 160 (1,926)


YTD Actual $000

Annual Budget $000

94

BRISBANE TRANSPORTBALANCE SHEET

ASSETS

CURRENT ASSETSCash equivalents 34,343 10,478Receivables 4,016 896Inventories 2,999 2,700Other 2,650 3,500Total Current Assets 44,008 17,574

NON-CURRENT ASSETSProperty, plant and equipment 5,058 8,265Capital work in progress 1,283 200Other 0 0Total Non-Current Assets 6,341 8,465

TOTAL ASSETS 50,349 26,039


CURRENT LIABILITIESCreditors and borrowings 21,939 12,820Provisions 3,906 2,962Other 12,900 210Total Current Liabilities 38,745 15,992

NON-CURRENT LIABILITIESCreditors and borrowings 0 0Provisions 9,341 9,870Other 0 0Total Non-Current Liabilities 9,341 9,870

TOTAL LIABILITIES 48,086 25,862

NET ASSETS 2,263 177

EQUITY

Capital and capital accounts 2,103 2,103Accumulated surplus/(deficiency) 160 (1,926)

TOTAL EQUITY 2,263 177

Annual Budget $000


YTD Actual $000

95


96

BRISBANE CITYWORKS

97


1. Goal

“To provide profitable, high quality and value for money civil construction and maintenance services primarily to the Brisbane City Council, and to other customers".


Annual

Actual Budget Budget

Return on Shareholders' Funds 15.60% 28.60% 34.90%

Net Profit before Tax to Sales 2.50% 5.15% 5.42%


Annual

Budget $000

Variance $000

Budget $000

Revenue (excluding interest) 152,755 (371) 204,360

Expenses 145,412 (3,569) 193,993

Earnings before interest and tax 7,344 (3,940) 10,366

Revenue

Revenue excluding interest is below budget for the year with a higher than expected result for External revenue.

Bracalba Quarry external sales continue to be strong and are higher than originally budgeted. A factorcontributing to this is increased cartage revenue as the destination distribution trend is for longer haul projects.Involvement in the Translink Bus Shelter construction program has also had a positive impact on revenue in construction, which has performed above budget levels.

Council revenue is below expected levels with some drainage projects being postponed and reductions in .asphalt resurfacing and capital works.

Expenses

Expenditure including tax is above budget for the year.

External costs in some areas have increased above budgeted levels including bitumen and external plant hire.Year to date expenditure includes labour rate increases which are greater than originally budgeted.

Bracalba Quarry contract cartage costs are higher than budgeted due to increased longer haul deliveries, this is a recovered cost as indicated above in line with the additional revenue at Bracalba.

152,384

148,980

3,404

Year to Date

Year to Date

Actual $000

98

BRISBANE CITYWORKSINCOME STATEMENT

Revenue

External 27,742 25,939 30,495Capital and Maintenance Works 124,641 126,816 173,864Other - Interest 598 552 750

152,982 153,307 205,110

(176) 0 0TOTAL REVENUE 152,806 153,307 205,110

Expenses

Employee Costs 53,713 51,431 69,034Materials and Services - Property and Plant 91,946 89,882 119,402Depreciation/Amortisation 984 1,098 1,490Other Expenses 2,336 3,001 4,068TOTAL EXPENSES 148,980 145,412 193,993

Operating Profit/(Loss) before Income Tax 3,826 7,896 11,116

Income Tax Expense 1,148 2,369 3,335

Operating Profit/(Loss) after Income Tax 2,678 5,527 7,782


YTD Actual $000

YTD Budget $000

Annual Budget $000

Gain/(Loss) on disposal of property, plant and equipment

99

BRISBANE CITYWORKSAPPROPRIATION AND RESERVE TRANSFERS STATEMENT

Operating Surplus/(Deficit) 2,678 5,527 7,782

Accumulated Surplus at beginning of Year 14,923 14,923 14,923

Accumulated Surplus available for transfer 17,601 20,450 22,705

Transfers (to)/from Capital and Reserves 0 0 0

Dividend 0 0 (6,226)

Accumulated Surplus/Deficit at end of Period 17,601 20,450 16,479

Annual Budget $000


YTD Actual $000

YTD Budget $000

100

BRISBANE CITYWORKSBALANCE SHEET

ASSETS

CURRENT ASSETSCash and Deposits 17,827 8,559 18,840Receivables 14,614 21,062 7,818Inventories 4,465 3,250 3,567Work in Progress 2,127 1,114 1,223Other 626 2,535 2,783Total Current Assets 39,659 36,521 34,232

NON-CURRENT ASSETSProperty, plant and equipment 18,803 19,797 20,205

TOTAL ASSETS 58,462 56,319 54,437


CURRENT LIABILITIESCreditors and borrowings 25,133 20,304 20,535Provisions 2,723 2,118 3,521Other (9) 385 389Total Current Liabilities 27,847 22,807 24,445

NON-CURRENT LIABILITIESProvisions 7,237 7,237 7,687

TOTAL LIABILITIES 35,084 30,044 32,132

NET ASSETS 23,378 26,275 22,304

EQUITY

Capital and capital accounts 5,145 5,145 5,145Reserves 632 680 680Accumulated surplus/(deficiency) 17,601 20,450 16,479

TOTAL EQUITY 23,378 26,275 22,304


YTD Actual $000

YTD Budget $000

Annual Budget $000

101


102

CITY BUSINESS

103



Annual

Budget Variance Budget

Return on Total Revenue 6.87% 0.21% 7.06%

Total Labour Costs to Total Revenue 29.25% 2.09% 28.82%

Net Surplus before tax to Total Revenue 9.93% 0.39% 10.13%


Annual

Budget $000

Variance $000

Budget $000

Revenue 163,526 10,253 224,357

Expenses 147,290 (8,564) 201,636

Operating surplus before tax 16,236 1,689 22,721

Revenue

Internal revenue for the year to date is $101.32m, $8.76m favourable or 9.5% above budget. This was primarily due to a favourable result for City Design ($4.14m) due to higher levels of internal projects across all groups above budget expectations, VPS ($2.15m) due to increased work with Local Asset Services, City Policy and Strategy and CBMS, City Waste ($1.18m) for increased voucher usage and higher than budgeted gatehouse revenue and BCS ($858K) for the reimbursement of costs incurred by the HRIS project, and City Venues ($145K) for community events held at the Riverstage.

External revenue for the year to date was $72.45m, $1.49m favourable or 2.1% above budget. This was predominantly due to a favourable variance at City Waste Services ($1.41m) for increased cleansing revenue, City Venues ($119K) for community events held at the Riverstage, Cemeteries ($128K) for increased grave and plaque sales and City Design ($378K) due to active efforts throughout the business to improve on and develop a stronger external project base. This was offset by unfavourable variances for City Building and Maintenance ($80K) due to increased focus on meeting internal client demand and City Fleet ($365K) for vehicle emission testing.

Expenses

Expenses for the year to date were $155.85m, $8.56m unfavourable or 5.8% above budget. The unfavourable variances were generated primarily from City Design ($4.5m) due to labour costs incurred in generating higher than budgeted revenue and EBA6 backpay, VPS ($1.7m) due to resources required to meet increased demand, City Waste Services ($1.2K) for variances on contracts, caused by volumetric increases and the impact of rise and fall, Enabling Services ($296K) for improvement projects such as City Fleet, City Building and Maintenance and Enabling Services transitional arrangements and the development of an Information Management System and BCS ($858K) related to the additional contractors and overtime required to manage the HRIS project.

17,925

Year to Date

Actual

7.08%

31.34%

10.31%

173,779

155,854

Year to Date

Actual $000

104

CITY BUSINESSINCOME STATEMENT

Revenue

Internal Revenue 101,324 92,563 128,133External Revenue 72,455 70,963 96,224TOTAL REVENUE 173,779 163,526 224,357

Expenses

Total Labour Costs 54,471 47,839 64,656Materials and Services 81,388 79,257 109,593Equipment Charges 15,261 15,646 21,281Total Depreciation and Amortisation 260 341 466Total Finance Costs 4,343 4,074 5,459Total Competitive Neutrality Costs 131 133 181TOTAL EXPENSES 155,854 147,290 201,636

Operating Profit before Income Tax 17,925 16,236 22,721

Income Tax Expense 5,620 4,998 6,882

Operating Profit after Income tax 12,305 11,238 15,839


YTD Actual $000

YTD Budget $000

Annual Budget $000

105

quarterly financial report march 2006 - … · quarterly financial report march 2006 ... imbalances...

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