quarterly performance report to council q1 2015-16 · budget lesslleessssless forecast 2015/16...

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Contents

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

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

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

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

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

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

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

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

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

5. Financial and resource implications .................................................................................................. 11

Section 2 – Performance against Council Plan ...................................................................................... 12

Section 3 – Financial Statements .......................................................................................................... 13

3.1 Income Statement................................................................................................................. 23

3.2 Capital Projects ..................................................................................................................... 24

3.3 Balance Sheet ........................................................................................................................ 25

3.4 Cashflow Statement .............................................................................................................. 26

Section 4 – Capital Works ..................................................................................................................... 27

4.2 Capital Revenue (YTD unfavourable $110k, Forecast favourable $180k) ............................. 28

4.3 Capital Expenditure (YTD unfavourable $148K, Forecast favourable $238K) ....................... 28

4.4 Capital Budget Status ............................................................................................................ 29

Section 5 – Divisional Overview ............................................................................................................ 30

5.1 Executive Office .................................................................................................................... 30

5.2 City Strategy .......................................................................................................................... 31

5.3 Corporate Services ................................................................................................................ 31

5.4 Infrastructure Services .......................................................................................................... 32

5.5 Community Services .............................................................................................................. 32

Section 6 – Community Engagement .................................................................................................... 34

Cover Photo – Bayside Library Service pop up digital elibrary, held during the reporting quarter.

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Section 1 – Executive Overview

1.1 Introduction

The Q1 Quarterly Performance Report provides a detailed report on performance against

the Council Plan 2013-2017 and the 2015-2016 Annual Budget for the first quarter.

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

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

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

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

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

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

Engagement activities undertaken during the quarter.

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1.2 Performance against Council Plan

This is the first quarter report against the 2015-2016 Activities, which align directly with the

goals of the Council Plan 2013-2017.

For the first quarterly report, 40 activities have been reported against with one activity

being completed and the remaining 39 activities tracking at least 90% on target.

Further detail can be found on page 12, under Section 2.

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1.3 Financial Overview

The financial overview includes:

1. Operating Result

2. Cash and Investments

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

4. Operating Results by Division

5. Financial and Resource Implications

1. Operating Result

Line Item in $'000s

YTD Adjusted Budget

YTD Actuals

YTDBudget

Variance

2015/16Adjusted

BudgetCurrent Forecast

Full Year Forecast Variance

Operating Services & New Initiatives BudgetIncome

Rates & Charges 20,731 20,780 48 82,350 82,622 271 Statutory Fees & Charges 983 1,110 128 3,990 4,058 69 User Fees 1,812 1,924 113 7,462 7,555 93 Rental Income 1,636 1,674 38 3,970 3,961 (9) Grants-Operating 2,886 2,595 (291) 10,075 8,837 (1,237) Grants-Capital 180 187 7 1,749 1,750 1 Contributions-Cash-Operating - 56 56 25 105 80 Contributions-Cash-Capital 250 1,158 908 2,699 1,804 (894) Interest Income 365 496 131 1,460 1,734 274 Other Income 415 1,037 622 1,700 2,279 579 Net Profit/(Loss) on Disposal of assets - 327 327 - 1,226 1,226

Total Income 29,258 31,344 2,086 115,480 115,933 452

ExpenditureEmployee Costs 9,875 9,710 165 38,840 39,197 (357) Materials and Services 11,640 10,499 1,141 42,538 42,638 (100) Bad and Doubtful Debts 1 3 (2) 172 172 - Depreciation and Amortisation 3,800 3,847 (47) 15,206 15,389 (183) Other Expenses 130 74 56 519 438 81 Finance Costs 205 205 (0) 730 730 -

Total Expenditure 25,651 24,338 1,314 98,004 98,564 (559)

Operating Result - Surplus 3,607 7,006 3,400 17,476 17,369 (107)

2015/16 Year to date operating result The September year to date result is a surplus of $7M which is $3.4M favourable to Budget.

6

2015/16 Forecast operating result

The current forecast for the year represents a surplus of $17.4M which is ($107k) unfavourable to

Budget.

The underlying forecast operating result is unfavourable to budget by ($352k) and excludes the

following one off items:

• ($1.3M) – 50% Grants Commission funding received in 2014/15

• ($1.4M) – Forecast Capital funding lower than budget mainly due to:

o ($2.2M) – Banksia Reserve Beaumaris Pavilion Redevelopment funding to be

received in 2016/17 when project is expected to be completed.

o $576k – Unbudgeted grant funding to be received for Half Moon Bay Boat Ramp

Reconstruction, North Road Jetty Storm Damage, and Half Moon Bay Catwalk &

Carpark Storm Damage

• $1.2M – Net proceeds for the sale of Sandringham Child Care Centre. Deposit received in

July.

• $598k – Refund from Transpacific regarding the carbon tax paid on the waste disposal

contract.

• $500k – Increase in resort & recreation levy to be transferred to reserves

• $274k – Interest income from term deposits forecast to increase due to favourable

operating cash position.

• ($183k) – Depreciation increase due mainly to building assets found in 2014/15 and

unbudgeted foreshore capital projects.

.

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2. Cash and Investments The cash position of $70.0M has increased by $13.3M from $56.7M and is $11.0M favourable to

budget as at September 2015 mainly due to $7.7M greater open cash balance than budgeted and

favourable cash from operations to date.

30.Jun.15Actual Actual Budget Variance Budget Forecast Variance$' 000 $' 000 $' 000 $' 000 $' 000 $' 000 $' 000

Unrestricted 24,255 36,153 32,539 3,614 21,339 21,395 56Restricted and committed funds 32,491 33,888 26,464 7,424 25,716 34,669 8,953

56,746 70,041 59,003 11,038 47,055 56,064 9,009Cash & cash equivalents (including investments) consists of:

Retail banks 52,000 63,500Community banks 2,000 - Cash on hand and at bank 2,746 8,541

Total cash and cash equivalents 56,746 72,041

Statutory ReservesRecreational Land Reserve 8,926 10,065 8,886 1,179 8,909 9,621 712Car Parking Reserve 381 381 375 6 385 391 6Infrastructure Reserve 4,990 4,990 679 4,311 696 3,415 2,719Dendy Street Beach Improvement Reserve 764 764 624 140 915 1,119 204Community Facilities Enhancement Reserve 908 908 921 (13) 945 931 (14)Early Childhood Facilities Reserve 2,560 2,560 2,580 (20) 2,645 6,044 3,399Defined Superannuation Shortfall 1,000 1,000 1,013 (13) 1,538 1,500 (38)Unspent Conditional Grants Reserve 345 345 - 345 - - - Capital Works Carried Forward Reserve 3,286 3,286 2,290 996 - 1,845 1,845Trust Funds and Deposits 3,517 3,517 3,282 235 3,099 3,693 594

Total Statutory Reserves 26,677 27,816 20,650 7,166 19,1 32 28,559 9,427Committed Funds

Long Service Leave fund 5,814 6,072 5,814 258 6,584 6,110 (474)Total Committed Funds 5,814 6,072 5,814 258 6,584 6,110 (4 74)Total Restricted and Committed funds 32,491 33,888 26,464 7,424 25,716 34,669 8,953

Cash and cash equivalents at the end of the period

30.Sep.15 31.Aug.15

Restricted funds include trust funds, reserves, and long service leave commitments.

Major Reserves Movements in 2015/16 include:

• Open Space Contribution forecast to increase by $0.5 million.

• Opening balance of Infrastructure reserve includes $2.53M of savings from capital works in

2014/15.

• $3.26 million unbudgeted sale of Sandringham St Child Care to be quarantined in the Early

Childhood Facilities Reserve.

• $0.5 million annual top-up of the Defined Superannuation Reserve subject to 2015/16 LTFP.

8

Council’s investments totalling $63.5M at 30 September are 100% term deposits. They are as

follows:

Financial Institution Long Term Short Term

BOQ A- A-2 Fixed Term 1,000 12/10/2015 2.30% 47

BOQ A- A-2 Fixed Term 2,000 16/10/2015 3.00% 185

NAB AA- A-1+ Fixed Term 4,500 29/10/2015 2.92% 174


Suncorp A+ A-1 Fixed Term 1,000 19/11/2015 2.90% 184

BOQ A- A-2 Fixed Term 1,000 19/11/2015 2.95% 181

ANZ AA- A-1+ Fixed Term 4,000 27/11/2015 3.04% 154






BOQ A- A-2 Fixed Term 4,000 30/12/2015 3.00% 211










NAB AA- A-1+ Floating Rate 4,000 29/02/2016

2.98% to

27 Oct 186






Total 63,500 WOA 2.98%

Investment

Term (Days)

S & P Rating

Investment Type

Principal

Investment

( $'000) Maturity Date

Interest

Rate %

Institution

S & P

Rating

Investment

Holdings

(000's)

% Investment

holding by

Institution

BCC

Guidelines

(Max

Threshold)

Total

Investment

Holdings by

ratings (000's)

% Total

Investm

ent

Holdings

by

ratings

BCC

Guidelines

(Max

Threshold)

ANZ AA-/A-1+9,000 15% 60%

NAB AA-/A-1+36,500 57% 60% 45,500 72% 50%

Suncorp A+/A-1 10,000 16% 30% 10,000 16% 50%

Bank of Queensland A-/A-2 8,000 12% 30% 8,000 12% 50%

Total 63,500 100% 63,500 100%

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

Indicator

VAGO Target(to maintain

low risk)Forecast

PerformanceForecast

AchievableLiquidity(Current assets / Current liabilities) > 1.5 2.53 YesSelf-financing(Net operating cash flow / Underlying revenue) > 20.0% 27.30% YesCapital Replacement(Total Capital spend : Depreciation) > 1.5 2.00 YesIndebtedness(Non-current liabilities/Own source revenue) < 40.0% 3.14% YesUnderlying result (Net surplus/Revenue) > 0% 14.98% Yes

Renewal gap(Renewal capital spend:Depreciation) > 1.0 1.13 Yes Definitions:

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

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

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

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

projects.

Underlying result – sufficient operating income to cover operating expenses.

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

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4. Operating Result by Division

Division (in '000s)

2015/ 162015/ 162015/ 162015/ 16

YTDYTDYTDYTD

AdjustedAdjustedAdjustedAdjusted

BudgetBudgetBudgetBudget

2015/ 162015/ 162015/ 162015/ 16

YTDYTDYTDYTD

Ac tualsAc tualsAc tualsAc tuals

2015/ 162015/ 162015/ 162015/ 16

YTDYTDYTDYTD


VarianceVarianceVarianceVariance

2015/ 162015/ 162015/ 162015/ 16



CurrentCurrentCurrentCurrent

ForecastForecastForecastForecast

2015/ 162015/ 162015/ 162015/ 16



lesslesslessless

ForecastForecastForecastForecast

VarianceVarianceVarianceVariance

2015/16 Adjusted

Budget Percentage

Variance

Executive 1,005 994 11 4,006 4,237 (231) -5.8%Corporate Services 1,969 1,604 365 7,139 6,973 167 2.3%

Environment & Infrastructure 7,038 6,253 785 29,976 29,840 136 0.5%

City Planning & Amenity 875 736 139 3,748 4,004 (256) -6.8%

Community Services 2,689 2,474 215 11,710 11,878 (168) -1.4%Underlying Operating 13,575 12,060 1,514 56,579 56,931 (352) -0.6%

Rates (20,495) (20,539) 44 (82,245) (82,517) 272 -0.3%Corporate Finance (305) (2,169) 1,864 (3,568) (5,116) 1,548 -43.4%Capital Income (180) (205) 25 (3,448) (2,056) (1,392) 40.4%Depreciation 3,800 3,847 (47) 15,206 15,389 (183) -1.2%

Grand Total (3,606) (7,007) 3,400 (17,476) (17,369) (107) -1%

Executive forecast unfavourable ($231k)

• ($47k) – Organisational Development unfavourable due to higher than expected legal

expenses re industrial relations issues and increased expenditure on the implementation of

organisational restructure and the Innovation program

• ($183k) – Communications and Customer Service employee costs unfavourable due to

Organisational restructure, backfill for vacant roles and an increase in the demand for

customer service. Use of agency to backfill vacancies needs to be monitored closely.

Corporate Services forecast favourable $167k

• $78k – Decrease in employee costs due to vacant role which has now been filled and one

EFT transferred to Communications due to the organisational restructure.

• $63k – 2015/16 Insurance premiums lower than the estimate in the budget.

• $56k – Savings in fleet costs mainly due to a decrease in leasing costs.

• ($33k) – Delay in going live with new telecommunications contract has incurred additionals

costs.

•

Environment & Infrastructure forecast favourable $136k

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

• $60k – Increase in the number of permit fees issued due to building activity

• $50k – Lower expenditure required for Building Maintenance Program.

• ($58k) – Integrated Water Management Plan funding received in 14/15.

• ($46k) – Additional labour costs for Traffic Management and Drainage related to increased

planning applications.

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City Planning & Amenity forecast unfavourable ($256k)

• ($301k)– Statutory Planning salaries are forecast to be unfavourable by $334k.

Organisational restructure $267k all non recurrent, one staff member has moved across from Community and additional planning staff have been employed to manage increased

planning applications. This is partly offset by an increase in planning fee income due to the

strong property market $60k.

• $18k – Footpath permit applications increase due to building activity.

• $14k – Animal Registrations fees received relating to 2014/15

• $19k – Savings relating to vehicle leasing costs in Building.

• ($10k) – Lower than expected grant funding for Economic Development.

Community Services unfavourable ($168k)

• ($303k) – Aged Services Regional projects funded from 2014/15 grants – timing.

• $63k – Regional Assessment implementation program employee costs offset by Assessment

& Review program and funding from two other councils.

• $25k – Baby Capsule program to cease by October 2015 as per council resolution

• $10k – Decrease due to a reduction in the number of Delivered meals required.

Corporate Finance favourable $1.548M

• $1.3M – Net proceeds for the sale of Sandringham Child Care Centre. Deposit received in

July.

• $598k – Refund from Transpacific regarding the carbon tax paid on the the waste disposal

contract

• $500k – Increase in resort and recreation levy

• $274k – Interest income from term deposits forecast to increase due to favourable

operating cash position.

• ($1.3M) - 50% Grants Commission funding received in 2014/15.

• $100k – Decrease in workcover premiums relating to a reduction in claims, and staff

redundancies.

5. Financial and resource implications

The year-end forecast is a surplus of $17.4M which is ($107k) unfavourable to budget.

The underlying forecast operating result is unfavourable to budget by ($352k) and excludes the

following one off items including ($1.3M) Grants Commission where the funding was received in

advance in 2014/15, ($1.4M) reduction in capital funding of $2.2M relating to deferral of capital

income to 2015/16 and $576k unbudgeted capital grant funding received for a number of projects,

$1.2M net proceeds for the sale of Sandringham Child care centre, $500k from Resort and

Recreation Levy which is transferred to the reserves (balance sheet) for future Open Space

enhancements, $598k refund from Transpacific for carbon tax paid on the waste disposal contract,

$274k interest income from term deposits and ($183k) increase in depreciation due mainly to

building assets and foreshore capital projects.

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Section 2 – Performance against Council Plan

23

Section 3 – Financial Statements

3.1 Income Statement

Line Item in $'000s

YTD Adjusted Budget

YTD Actuals

YTDBudget

Variance

2015/16Adjusted

BudgetCurrent Forecast

Full Year Forecast Variance

Operating Services & New Initiatives BudgetIncome

Rates & Charges 20,731 20,780 48 82,350 82,622 271 Statutory Fees & Charges 983 1,110 128 3,990 4,058 69 User Fees 1,812 1,924 113 7,462 7,555 93 Rental Income 1,636 1,674 38 3,970 3,961 (9) Grants-Operating 2,886 2,595 (291) 10,075 8,837 (1,237) Grants-Capital 180 187 7 1,749 1,750 1 Contributions-Cash-Operating - 56 56 25 105 80 Contributions-Cash-Capital 250 1,158 908 2,699 1,804 (894) Interest Income 365 496 131 1,460 1,734 274 Other Income 415 1,037 622 1,700 2,279 579 Net Profit/(Loss) on Disposal of assets - 327 327 - 1,226 1,226

Total Income 29,258 31,344 2,086 115,480 115,933 452

ExpenditureEmployee Costs 9,875 9,710 165 38,840 39,197 (357) Materials and Services 11,640 10,499 1,141 42,538 42,638 (100) Bad and Doubtful Debts 1 3 (2) 172 172 - Depreciation and Amortisation 3,800 3,847 (47) 15,206 15,389 (183) Other Expenses 130 74 56 519 438 81 Finance Costs 205 205 (0) 730 730 -

Total Expenditure 25,651 24,338 1,314 98,004 98,564 (559)

Operating Result - Surplus 3,607 7,006 3,400 17,476 17,369 (107)

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3.2 Capital Projects

CAPITAL in $'000'sAdjusted Budget

YTD Actual

Budget Actual

Variance fav./

(unfav)

2015/16 Adjusted Budget

Current Forecast

2015/16 Adjusted Budget

less Forecast variance

2015/16 Carry

Forward Balance

to 2016/17Property Expenditure

Buildings 351 406 (55) 10,957 7,011 3,945 4,000 Building Improvements 240 119 121 2,376 2,510 (135) - Heritage Buildings 13 2 10 317 317 - -

Plant & Equipment ExpenditureFixtures, Fittings and Furniture 51 16 35 221 221 - - Arts and Culture 3 - 3 30 30 - - IT Systems, Network, Servers and Communication 225 211 15 1,444 1,534 (90) - Library Assets 99 56 43 395 395 - -

Infrastructure ExpenditureForeshore and Conservation 47 272 (225) 1,183 1,765 (581) - Parks and Recreation 1,160 830 329 7,233 7,118 115 - Off-Street Car Parks 11 (4) 15 418 409 9 - Drainage Infrastructure 146 133 13 2,537 2,545 (8) - Road Infrastructure 755 812 (57) 6,735 6,981 (246) -

Total Expense 3,102 2,854 248 33,846 30,836 3,010 4,000

RevenueGrants - Capital (180) (187) 7 (1,749) (1,750) 1 (755)Contributions - Cash- Capital - (18) 18 (1,699) (304) (1,393) (1,400)

Total Revenue (180) (205) 25 (3,448) (2,055) (1,393) (2,155)Total 2,922 2,649 272 30,398 28,781 1,618 1,845

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3.3 Balance Sheet


Current assetsCash and cash equivalents 3,746 8,541 5,503 3,038 4,055 4,064 9Trade and other receivables 5,822 68,200 70,163 (1,963) 4,665 4,930 265Other financial assets 53,000 61,500 53,500 8,000 43,000 52,000 9,000Inventories 124 124 55 69 54 127 73Non current assets classified as held for sale 2,194 2,194 - 2,194 - - - Other assets 1,065 420 615 (195) 768 798 30Total current assets 65,951 140,979 129,836 11,143 52,54 2 61,919 9,377

Non-current assetsTrade and other receivables 184 184 115 69 123 163 40Property, infrastructure, plant and equipment 2,562,271 2,561,276 2,285,236 276,040 2,304,142 2,577,752 273,610Financial assets 230 230 230 - 230 230 - Other assets 69 55 69 (14) 69 69 - Total non-current assets 2,562,754 2,561,745 2,285,650 276,095 2,304,564 2,578,214 273,650

Total assets 2,628,705 2,702,724 2,415,486 287,238 2,357 ,106 2,640,133 283,027

Current liabilitiesTrade and other payables 9,572 4,427 5,202 775 7,200 6,856 344Trust funds and deposits 3,517 3,206 3,332 126 3,099 3,637 (538)Provisions 7,751 8,047 8,047 - 8,673 8,233 440Interest bearing loans and borrowings 4,183 4,183 4,183 - 5,420 5,190 230Income in Advance 438 - - - - 594 (594)Suspense/Clearing Accounts 72,588 71,818 (770) - - - Total current liabilities 25,461 92,451 92,582 131 24,39 2 24,510 (118)

Non-current liabilitiesProvisions 920 943 943 - 1,054 1,118 (64)Interest bearing loans and borrowings 7,320 7,320 7,320 - 3,403 2,132 1,271Total non-current liabilities 8,240 8,263 8,263 - 4,457 3,250 1,207

Total liabilities 33,701 100,714 100,845 131 28,849 27,76 0 1,089

Net assets 2,595,004 2,602,010 2,314,641 287,369 2,328,2 57 2,612,373 284,116

EquityAccumulated surplus 814,359 820,684 819,557 1,127 834,593 830,022 (4,571)Asset revaluation reserve 1,757,485 1,757,487 1,477,633 279,854 1,477,633 1,757,485 279,852Other reserves 23,160 23,839 17,451 6,388 16,031 24,866 8,8352,595,004Total equity 2,595,004 2,602,010 2,314,641 287,369 2,328 ,257 2,612,373 284,116

Balance Sheet as at 30 Sep 2015

30.Sep.15 30.Sep.15

26

3.4 Cashflow Statement


Inflows Inflows Inflows Inflows Inflows Inflows Inflows

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

Cash flows from operating activitiesReceiptsRates and charges 79,011 25,807 24,581 1,226 82,246 82,208 (38)Statutory fees and fines 4,384 1,093 960 133 3,865 3,938 73User charges 8,289 2,042 1,941 101 8,743 8,899 156Rental income 3,876 1,674 1,833 (159) 4,115 4,209 94Contributions - monetary 2,833 1,214 525 689 2,024 1,928 (96)Grants - Operating 11,534 2,595 2,422 173 10,458 9,127 (1,331)Grants - Capital 854 187 240 (53) 2,177 1,887 (290)Interest 1,968 695 535 160 1,473 1,664 191Trust funds and deposits 428 3,389 3,330 59 148 120 (28)Other receipts 1,714 599 - 599 2,734 2,727 (7)Net GST refund 5,367 910 1,253 (343) 5,044 5,100 56

Employee costs (37,945) (10,417) (10,627) 210 (38,732) (39,100) (368)Payments to suppliers (47,633) (13,972) (14,945) 973 (50,480) (51,057) (577)Net cash provided by (used in) operating activities 34,680 15,816 12,048 3,768 33,815 31,650 (2,165)

Cash flows from investing activitiesPayments for property, infrastructure, plant & equipment (19,075) (2,864) (2,067) (797) (32,380) (30,836) 1,544Proceeds from sale property, infrastructure, plant & equipment 2,560 343 - 343 - 3,420 3,420Proceeds from term deposit investments (15,000) (8,500) (8,500) - 2,000 1,000 (1,000)Net cash used in investing activities (31,515) (11,02 1) (10,567) (454) (30,380) (26,416) 3,964

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

Net increase(decrease) in cash and cash equivalents 71 4,795 1,481 3,314 33 318 285Cash and cash equivalents at the beginning of the period 3,675 3,746 4,022 (276) 4,022 3,7 46 (276)Cash and cash equivalents at the end of the period 3,746 8,541 5,503 3,038 4,055 4,064 9Term Deposits 53,000 61,500 53,500 2,762 43,000 52,000 (26 7)Total cash and cash equivalents at the end of the period 56,746 70,041 59,003 5,800 47,055 56,064 (258)Unrestricted 24,255 36,153 32,539 3,614 21,339 21,395 56Restricted and Committed funds 32,491 33,888 26,464 7,424 25,716 34,669 8,953

56,746 70,041 59,003 11,038 47,055 56,064 9,009

Cashflow Statement - period ended 30 Sep 201530.Sep.15 31.Aug.15

27

Section 4 – Capital Works

The year to date net capital result is favourable to budget by $272K. Council is forecast to be net $1.62M

under budget for capital works at 30 June 2016. Taking into account the impact of $1.84M net of proposed

carry forwards, the capital budget is unfavourable by $227k.

$'000's

15/16 YTD Adjusted Budget

15/16 YTD Actuals Variance

2014/15AdjustedBudget

Current Forecast

Forecast Budget

Variance

Forecast rollover to 2016/17

Variance including rollover

Capital Income 180 205 25 3,448 2,055 (1,393) 2,155 (762)

Capital Expenditure 3,101 2,854 247 33,846 30,835 3,011 4,000 (989)

Grand Total 2,921 2,649 272 30,398 28,781 1,618 1,845 (227)

4541,694 2,921

5,003

6,928

9,214

12,144

14,594

17,478

20,933

25,021

30,398

0

5000

10000

15000

20000

25000

30000

35000

Jul Aug Sept Oct Nov Dec Jan Feb Mch Apr May Jun

$(0

00's

)

Capital Programs Status

2015/16 Actual 2015/16 Budget

28

4.2 Capital Revenue (YTD favourable $25k, Forecast unfavourable $1.39M)

The forecast unfavourable variance in capital income of $1.39M is due mainly to:

• ($2.1M) – Banksia Reserve Beaumaris Pavilion Redevelopment funding to be received at completion of

project in 16/17.

• $267k – Half Moon Bay Catwalk & Carpark Storm Damage, funding to be received at completion of

project.

• $128k – Half Moon Bay Boat Ramp Reconstruction, funding to be received at completion of project in

15/16.

• $180k – North Road Jetty Storm Damage Reconstruction, funding to be received at completion of project

in 15/16.

4.3 Capital Expenditure (YTD favourable $247k, Forecast favourable $3M)

The forecast favourable variance in capital expenditure of $3M is due mainly to:

• $2.4M – Banksia Reserve Beaumaris Pavilion Redevelopment, continuation from 14/15 to be completed in

16/17.

• 1.2M – Dendy Street Masterplan Implementation, continuation from 14/15 to be completed in 15/16.

• $330k – Hurlingham Park Pavilion Redevelopment, continuation from 14/15 to be completed in 16/17.

• ($200k) – Half Moon Bay Boat Ramp Reconstruction, continuation from 14/15 to be completed 15/16.

• ($200k) – North Road Jetty Storm Damage Reconstruction, continuation from 14/15 to be completed

15/16.

• ($150k) – Cheltenham Recreation Reserve Pavilion, unbudgeted project to commence in 15/16.

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

budget as at 30 September 2015.

Project Title 2015/16

YTD

Adjusted

Budget

2015/16

YTD

Actuals

2015/16

YTD

Adjusted

Variance

2015/16

Adjusted

Budget

Comments

Dendy Park Ground

Stabilisation Works $646,686 $544,527 $102,159 $1,681,572

Minor delays in stage one

due to unsuitable ground

conditions.

Activity Centre Christmas

Decorations $90,000 $0 $90,000 $120,000

Delays in finalising

contract.

Kerb & Channel

Replacement Program $320,000 $235,727 $84,273 $555,000

Minor delays in works,

program still on target to

be completed by

December 2015.

Sportsground

Reconstruction – Shipston

Reserve

$100,887 $21,507 $79,380 $1,035,278

Minor delays due to the

unavailability of the

ground at the originally

proposed

commencement date.

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Project Title 2015/16

YTD

Adjusted

Budget

2015/16

YTD

Actuals

2015/16

YTD

Adjusted

Variance

2015/16

Adjusted

Budget

Comments

Footpath Reconstruction

Program $290,000 $457,044 $(167,044) $1,750,000

Works ahead of

schedule.

North Road Jetty Storm

Damage Reconstruction $0 $127,030 $(127,030) $0

Unbudgeted expenditure

to be funded from

unbudgeted income.

Dendy Park Brighton East

New Public Toilet $0 $117,159 $(117,159) $163,433

Construction

commenced ahead of

schedule.

Customer Request

Management System

(CRMS) Software

$0 $60,640 $(60,640) $0

Prior year project

delayed and rolled into

2015/16 for completion

in August 2015.

Overspend due to

additional training and

resources required.

Half Moon Bay Boat Ramp

Reconstruction $0 $59,730 $(59,730) $0

Unbudgeted expenditure

to be funded from

unbudgeted income.

4.4 Capital Budget Status

For 2015/16 there are 168 capital projects to be delivered, with 6 of these completed at the end of the first

quarter, 115 projects in progress and 47 not yet started.

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Section 5 – Divisional Overview

5.1 Executive Office

Departments include:

• Communications and Customer Service

• Organisational Development

Key Highlights

• There have been 342,237 unique page views on the website this quarter and the top ten pages of

interest were:

• Home page

• Library home page

• Current job vacancies

• Contact Us

• Building planning application register

• Building and planning

• What’s On Calendar

• Library services

• Hard waste collection

• Library locations and opening hours

• Successful start to the Community Plan project – quantitative and qualitative research plans on time

and meeting expectations, a connected and engaged Reference Committee and an opportunity to

partner with LV’s Williamson alumni for further participation.

• This quarter the Customer Service department has responded to 45,326 customer enquiries via phone

and 2,663 via the website. We have also served 4,053 customers at the front counter during the July

to September period.

• Website development on track – the wireframes and responsive mobile website now completed and

ready for the design and content management process as planned and on track for a June 30 delivery.

• Key milestones in the Customer Focus Strategy were achieved including the new Customer

Relationship Management System (REX) went live, and the Complaints Handling and Escalation

procedure was completed.

• From 1 September 2015, Council implemented a new online recruitment system. The system is the

‘eRecruitment’ or ‘eRec’ module of a broader product provided by PeopleStreme. Bayside’s online

recruitment system enables all recruitment activities to be completed in a centrally based location and

replaces the previous manual paper based system used at Bayside.

• The Employee Opinion Survey was undertaken for the third time, with the results being made available

in July. The key indicators reflected the progress Bayside has made over the last few years in

improving our performance.

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5.2 City Planning and Amenity

Services provided by this division include:

• Amenity Protection

• Development Services (Building Surveying and Statutory Planning)

• Urban Strategy (Economic Development and Strategic Planning)

Key Highlights

• The Activity Centre Events and Celebration Program supported the Dad’ Super Saturday Event held at

Hampton Street Activity Centre on 5 September 2015

• The Bayside Planning Scheme Review 2015 – Final Report, adopted by Council and submitted to the

Minister for Planning

• Statutory Planning achieved 60% of applications processed within 60 days

• Statutory Planning determined a record number of 171 applications in September

Key Challenges

• Sustained increased Statutory Planning application lodgements at a time where work continues on

process improvement related to the Statutory Planning Service Review.

• Impact of unscheduled work such as the Willis Street Precinct Community Engagement on the Urban

Strategy Work Program.

• Increased Local Law complaints with respect to illegal hard rubbish dumping and graffiti.

5.3 Corporate Services


• Governance and Performance Reporting

• Finance

• Commercial Services

• Information Services

Key Highlights

• Compilation of the 2014/15 Annual Report

• Completion of the 2014/15 reporting against the Local Government Performance Reporting

Framework for publication on the Know Your Council website

• Delivery of 5 highly successful Mayoral functions

• Financial Statements and external Audit process completed on time to a high standard

• Implementation of the new on line Recruitment software

Key Challenges

• Preparation for the implementation of the State Government Rate Capping regime

• Identifying and implementing improvements to the use of Council properties to improve

utilisation and financial return

• Identification of ongoing operational efficiencies and cost savings

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5.4 Environment and Infrastructure


• Infrastructure Assets

• City Works

• Environmental Sustainability and Open Space

Key Highlights

• Completion of the final stage (Stage 4) of the street light replacement program

• Successful introduction of new Building Maintenance contractor (Campeyn) that commenced on 1 July

2015

• The Detox your home service is up and running at the transfer station

• In digital photo display of bushland flora exhibited by Friends of Bayside and Council

• Asset Renewal forecast modelling for updating the Long Term Financial Plan has been undertaken

• Testing of design concepts for the Sandringham Village Masterplan through community consultation

• Local Area Traffic Management Policy revised and prepared for community consultation

Key Challenges

• A number of pavilion projects are at various stages of development

• Complaints from neighbours of the Talinga Road transfer station relating to dust

• The prevalence of graffiti on public and private infrastructure has increased

• Complaints from adjacent property owners regarding new bus shelters delivered by Public Transport

Victoria

• Being agile to reaching out to ‘silent’ traders and business owners in Sandringham Village whom have

not commented on the draft Masterplan concepts

Negotiating with VicRoads on flexibility with the implementation of a 40kmh speed zone or pedestrian

crossing in Hampton Street at Dendy Village

5.5 Community Services


• Family Services

• Aged and Disability Services

• Libraries and Culture

• Recreation, Events and Social Development

Key Highlights

• Commenced implementation of the Family Services Service Review

• Design process for the East Beaumaris Kindergarten redevelopment commenced

• Library Services Study completed

• Implementation of key actions within Council’s Wellbeing for All Ages and Abilities Strategy

• Preparation of the draft Playground Improvement Plan

33

• Implementation of actions from Council’s Youth Service – Service Review

• Being part of the Early Implementation Project for Victoria’s HACC Services transition from the state to

the commonwealth funding for clients over 65 years

• Implementation of three month trial to contract part of the home maintenance service out

• Commencement of the Electronic rostering project for care workers

Key Challenges

• Ensure effective analysis of data and information to guide Council’s strategic decision making

• Managing change and the effect of policy changes on staff moral and attitudes

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Section 6 – Community Engagement Council recognises that decision making is enhanced, services are better delivered and that strategies and policies are likely to result in better outcomes for the

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

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

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

culture, gender, age and ability.

Community engagement is orientated around the IAP2 Spectrum of Participation that identifies five levels of “public participation” (or community engagement)

related to the impact of the proposal under consideration.

The following consultation activities were undertaken throughout July – September 2015.

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

Tools / Technique of engagement

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

Hampton East Structure Plan Local residents Online and Face to face

C140 – Subdivision planning amendment General Bayside community Online and face to face

Elsternwick Park Masterplan General Bayside community Online

quarterly performance report to council q1 2015-16 · budget lesslleessssless forecast 2015/16...

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