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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.
3
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.
4
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.
5
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.
.
7
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
NAB AA- A-1+ Fixed Term 1,000 09/11/2015 2.62% 75
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
ANZ AA- A-1+ Fixed Term 2,000 27/11/2015 3.04% 151
NAB AA- A-1+ Fixed Term 1,000 07/12/2015 2.85% 96
Suncorp A+ A-1 Fixed Term 1,000 18/12/2015 3.00% 197
ANZ AA- A-1+ Fixed Term 2,000 18/12/2015 3.04% 172
ANZ AA- A-1+ Fixed Term 1,000 30/12/2015 3.02% 166
BOQ A- A-2 Fixed Term 4,000 30/12/2015 3.00% 211
NAB AA- A-1+ Fixed Term 1,000 04/01/2016 2.85% 124
NAB AA- A-1+ Fixed Term 2,000 15/01/2016 2.92% 169
Suncorp A+ A-1 Fixed Term 1,500 29/01/2016 2.87% 163
NAB AA- A-1+ Fixed Term 2,500 29/01/2016 2.90% 164
NAB AA- A-1+ Fixed Term 3,000 12/02/2016 2.93% 183
NAB AA- A-1+ Fixed Term 6,000 26/02/2016 2.93% 193
NAB AA- A-1+ Fixed Term 3,000 26/02/2016 2.93% 193
NAB AA- A-1+ Fixed Term 1,500 29/02/2016 2.92% 192
NAB AA- A-1+ Fixed Term 1,000 29/02/2016 2.88% 187
NAB AA- A-1+ Floating Rate 4,000 29/02/2016
2.98% to
27 Oct 186
NAB AA- A-1+ Fixed Term 3,500 11/03/2016 2.88% 191
Suncorp A+ A-1 Fixed Term 1,000 14/03/2016 2.92% 186
NAB AA- A-1+ Fixed Term 1,000 14/03/2016 2.91% 185
NAB AA- A-1+ Fixed Term 1,500 24/03/2016 2.95% 185
Suncorp A+ A-1 Fixed Term 5,500 30/03/2015 2.95% 184
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%
9
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.
10
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
AdjustedAdjustedAdjustedAdjusted
VarianceVarianceVarianceVariance
2015/ 162015/ 162015/ 162015/ 16
AdjustedAdjustedAdjustedAdjusted
BudgetBudgetBudgetBudget
CurrentCurrentCurrentCurrent
ForecastForecastForecastForecast
2015/ 162015/ 162015/ 162015/ 16
AdjustedAdjustedAdjustedAdjusted
BudgetBudgetBudgetBudget
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.
11
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.
12
Section 2 – Performance against Council Plan
13
14
15
16
17
18
19
20
21
22
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)
24
3.2 Capital Projects
CAPITAL in $'000'sAdjusted Budget
YTD Actual
Budget Actual
Variance fav./
(unfav)
2015/16 Adjusted Budget
Current Forecast
2015/16 Adjusted Budget
less Forecast variance
2015/16 Carry
Forward Balance
to 2016/17Property Expenditure
Buildings 351 406 (55) 10,957 7,011 3,945 4,000 Building Improvements 240 119 121 2,376 2,510 (135) - Heritage Buildings 13 2 10 317 317 - -
Plant & Equipment ExpenditureFixtures, Fittings and Furniture 51 16 35 221 221 - - Arts and Culture 3 - 3 30 30 - - IT Systems, Network, Servers and Communication 225 211 15 1,444 1,534 (90) - Library Assets 99 56 43 395 395 - -
Infrastructure ExpenditureForeshore and Conservation 47 272 (225) 1,183 1,765 (581) - Parks and Recreation 1,160 830 329 7,233 7,118 115 - Off-Street Car Parks 11 (4) 15 418 409 9 - Drainage Infrastructure 146 133 13 2,537 2,545 (8) - Road Infrastructure 755 812 (57) 6,735 6,981 (246) -
Total Expense 3,102 2,854 248 33,846 30,836 3,010 4,000
RevenueGrants - Capital (180) (187) 7 (1,749) (1,750) 1 (755)Contributions - Cash- Capital - (18) 18 (1,699) (304) (1,393) (1,400)
Total Revenue (180) (205) 25 (3,448) (2,055) (1,393) (2,155)Total 2,922 2,649 272 30,398 28,781 1,618 1,845
25
3.3 Balance Sheet
30.Jun.15Actual Actual Budget Variance Budget Forecast Variance$' 000 $' 000 $' 000 $' 000 $' 000 $' 000 $' 000
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
30.Jun.15Actual Actual Budget Variance Budget Forecast Variance$' 000 $' 000 $' 000 $' 000 $' 000 $' 000 $' 000
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.
29
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.
30
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.
31
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
Services provided by this division include:
• 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
32
5.4 Environment and Infrastructure
Services provided by this division include:
• 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
Services provided by this division include:
• 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
34
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