Governance Committee

Meeting Agenda

18 February

2020

 

Governance Committee LATE REPORTS

 

 

Item No.

Item Title

Page No.

7

Monthly Performance Report - December 2019

3

** Item includes confidential papers

 


Governance Committee NO. 1

 

18 February 2020

 

LATE REPORTS

 

 

7.             Monthly Performance Report - December 2019

This is a report concerning Council performance for the period ending 31 December 2019, submitted in accordance with section 204 of the Local Government Regulation 2012.

 

Recommendation

That the Interim Administrator of Ipswich City Council resolve:

That the report be received and the contents noted.

  

** Item includes confidential papers

and any other items as considered necessary.


Governance Committee

Meeting Agenda

18 February

2020

 

Doc ID No: A6031616

The Chairperson has determined this matter is of real urgency and approval has been given to refer this report to the Governance Committee as a late item.

ITEM:              7

SUBJECT:        Monthly Performance Report - December 2019

AUTHOR:       Manager, Finance

DATE:              7 February 2020

 

 

Executive Summary

This is a report concerning Council performance for the period ending 31 December 2019, submitted in accordance with section 204 of the Local Government Regulation 2012.

Recommendation/s

That the Interim Administrator of Ipswich City Council resolve:

That the report be received and the contents noted.

RELATED PARTIES

There are no related party matters associated with this report.

Advance Ipswich Theme

Strengthening our local economy and building prosperity

Purpose of Report/Background

The attached report shows the financial results for Ipswich City Council as at 31 December 2019. The total Net Result (including capital revenues) is $45.4m compared to the YTD budget of $44.8m. Council’s YTD operating deficit (excluding capital revenue) is approximately $5.9m compared to the YTD budget deficit of $8.7m (the full year budget surplus is $2.6m). Additional operating revenue of $3m YTD for items such as QUU tax and operational grants has driven the current positive position.

Capital expenditure including the CBD Redevelopment as at 31 December is $652k below the YTD budget.  Approximately $105.3m has been expended to 31 December compared to the current YTD capital expenditure budget of $106m.

Commentary and analysis of the results is included in the report. Items to note include:

·    As highlighted previously Council’s rates and utility charges continue to be impacted by lower than forecast property growth (especially from Quarter 4 in the 18/19 financial year). There is a risk that Council’s rates and utility charges revenue will be less than forecast by year end and will be reviewed further as part of a budget review.

•     Town planning fees again showed improved results for the month however remain under budget year to date due to a downturn in the development industry. These improved results occurred in line with predictions of increased applications received in the lead up to Christmas and YTD revenue is now $838k below budget. Whilst trends are showing positive results over the last 2 months it has been identified full recovery of town planning fees is unlikely to occur by year end. This has been included for consideration in the February budget amendment.

•     Employee expenses are currently over budget due to additional labour contracts to fill staff vacancies, the impact of EBA rate increases on leave provisions and contractual payments.  Employee expenses are being carefully monitored and reviewed by the Executive Leadership Team.

•     Material and services expenses continue to be below budget as a result of underspends in service contracts due to: previously drier conditions; works not commencing as expected; and lower than expected maintenance costs. A review is currently being undertaken in relation to the phasing and timing of expenditure during the year.

•     Capital revenue from developer contributions and donated assets is still behind budget and will be monitored.

•     Whilst the capital expenditure on the CBD Redevelopment has exceeded the YTD budget by $9.7m, the timing of the cash flow for the project over the 19/20 and 20/21 financial years is currently being reviewed to better align with the project schedule.  Any required changes will be reflected in the February budget amendment. Capital expenditure on other capital projects including the ICT and Infrastructure programs, are below YTD budget by $10.4m as a result of delays with services relocations, detailed designs and implementation of the ICT Strategy. The capital program delivery schedule and forecast expenditure by financial year end is currently being reviewed in detail by the Infrastructure and Environment Department and Corporate Services Department.

 •    Considering the results above, cash currently held is slightly above forecasted cash balances.

Legal/Policy Basis

This report and its recommendations are consistent with the following legislative provisions:

Local Government Regulation 2012

RISK MANAGEMENT IMPLICATIONS

The implications of the financial results YTD will be monitored by management and any changes or risks to Council’s forecast position will be considered as part of Council’s budget amendments. 

As highlighted above there is a risk to Council’s forecast rates and utility charges revenue as a result of lower than forecast growth (especially from Quarter 4 in the 2018-2019 financial year). Year to date this has not been recovered and will be considered in the February budget amendment.

Town planning fees together with employee expenses and deferred capital projects will also be included for consideration in the February budget amendment.

Financial/RESOURCE IMPLICATIONS

There are no specific financial implications as a result of this report.

COMMUNITY and OTHER CONSULTATION

The contents of this report did not require any community consultation. Analysis and explanations of the variances is undertaken in conjunction with the various Departments.

Conclusion

The monthly performance report for December 2019 is included at Attachment 1.

Attachments and Confidential Background Papers

 

1.

Monthly Performance Report - December 2019

 

Jeffrey Keech

Manager, Finance

I concur with the recommendations contained in this report.

Sonia Cooper

General Manager Corporate Services

I concur with the recommendations contained in this report.

David Farmer

Chief Executive Officer

 

“Together, we proudly enhance the quality of life for our community”


Governance Committee

Meeting Agenda

18 February

2020

Item 7 / Attachment 1.

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