Attachments - City of Busselton

COUNCIL 24/04/2013
ITEM 9.2 ATTACHMENT
64
Finance Committee 04/04/2013
saving will be reflected in the same activities as the aforementioned Geographe Leisure Centre
Gymnasiums Extensions savings.
In summary, whilst the ‘Proceeds from New Loans’ activity may reflect a shortfall of approximately
$4.57M, this would be off‐set by the non‐progression of the associated capital expenditure activities.
Self‐Supporting Loans – Repayment of Principal
This revenue activity represents the reimbursement of the principal component of self‐supporting
loan repayments. The revenue is offset via the ’Total Loan Repayments – Principal’ capital
expenditure activity, which comprises both City and self‐supporting loan repayments. As no
unbudgeted self‐supporting loan facilities have been approved this financial year, the annual budget
allocation will be achieved as at 30 June 2013.
Transfers from Restricted Assets
The ‘Transfers from Restricted Assets’ capital revenue activity represents the equity transfer of
previously quarantined monies (primarily grants and contributions) to assist in funding specific
works in 2012/13. These include the Busselton and Dunsborough Foreshore works, the Busselton
Jetty, and approximately 40 other identified projects. This activity also includes the refund of bonds
and deposits paid to the City.
The transfers processed to 28 February 2013 comprise approximately $3.5M for the Foreshore
projects, and approximately $0.3M in bond and deposit refunds. Whilst other identified works may
have been completed, transfers are generally undertaken as part of the end of financial year
processes (during June), to ensure that all expenditure has been incurred against those works being
funded. It should be noted that the performance in this activity does not directly impact on the City’s
closing surplus/ deficit position, as where transfers are not made, this will be due to the associated
expenditure not being incurred.
Transfers from Reserves
The ‘Transfers from Reserves’ capital revenue activity is similar to ‘Transfers from Restricted Assets’,
insofar as it also represents the equity transfer of monies, albeit in this case, from reserve funds. The
transfers processed to 28 February 2013 comprise the Nautical Lady site clearance ($2.2M) and also
the transfer of the advance WA Local Government Grants Commission grant payment of $1.1M. As
with ‘Transfers from Restricted Assets’, transfers are generally made closer to the end of the
financial year, however will be brought forward to fund operational cash‐flow requirements in need.
Analogous with ‘Transfers from Restricted Assets’, the performance in this activity does not directly
impact on the City’s closing surplus/ deficit position. Where a transfer is not made, it will be due to
the associated works not having been commenced, essentially negating both the revenue and
expenditure.
CAPITAL EXPENDITURE
As at 28 February 2013, there is a variance of approximately ‐$8.2M (or ‐27.3%) in respect of total
capital expenditure activities. This variance is detailed as follows:
Description
Actual
YTD
$
Amended
Budget YTD
$
Amended
Budget
$
Variance
YTD
$
Variance YTD
%
Land & Buildings 3,833,348 4,608,465 6,688,376 ‐775,117 ‐16.82%
Plant & Equipment 1,250,515 2,403,463 3,290,469 ‐1,152,948 ‐47.97%