City of Greater Bendigo Annual Budget 2014/2015

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5. Analysis of Budgeted Cash Position This section analyses the expected cash flows from the operating, investing and financing activities of Council for the 2014/2015 year. Budgeting cash flows for Council is a key factor in setting the level of rates and providing a guide to the level of capital expenditure that can be sustained with or without using existing cash reserves. The analysis is based on three main categories of cash flows: Operating activities - Refers to the cash generated or used in the normal service delivery functions of Council. Cash remaining after paying for the provision of services to the community may be available for investment in capital works, or repayment of debt. Investing activities - Refers to cash generated or used in the enhancement or creation of infrastructure and other assets. These activities also include the acquisition and sale of other assets such as vehicles, property and equipment. Financing activities - Refers to cash generated or used in the financing of Council services and include borrowings from financial institutions and advancing of repayable loans to other organisations. These activities also include repayment of the principal component of loan repayments for the year. 5.1 Budgeted Cash Flow Statement Ref Forecast Actual 2013/2014 $’000 Budget 2014/2015 $’000 Variance $’000 Cash flows from operating activities 5.1.1 Receipts from customers 118,593 122,145 (3,552) Payments to suppliers and employees (115,301) (126,687) 11,386 Interest received 1,820 1,450 370 Government receipts 31,047 38,775 (7,728) Net cash provided by operating activities 36,159 35,683 476 Cash flows from investing activities 5.1.2 Proceeds from sales of property, plant & equipment 2,280 2,507 227 Payments for property, plant and equipment (51,596) (41,401) 10,195 Net cash used in investing activities (49,316) (38,894) 10,722 Cash flows from financing activities 5.1.3 Proceeds from borrowings - interest bearing 7,134 4,008 (3,126) Repayment of borrowings - interest bearing (1,957) (2,141) (184) Trust funds (196) 0 196 Borrowing costs (1,432) (1,689) (257) Net cash used in financing activities 3,549 178 (3,371) Net increase (decrease) in cash and cash (9,608) (3,033) 6,575 equivalents Cash and cash equivalents at the beginning of the year 42,178 32,570 (9,608) Cash and cash equivalents at end of the year 5.1.4/5.2 32,570 29,537 (3,033) Source: Appendix A Greater Bendigo City Council Budget – 2014/2015 30
5.1.1 Operating Activities ($0.47 million increase) The decrease in cash inflows from operating activities is a combination of increased revenue from rates (refer note 4.2.1) and increased operating grants (refer note 4.2.7), offset by increased employee costs (refer note 4.3.1), and increased contracts, materials and services (refer note 4.3.2). The net cash flows from operating activities does not equal the operating result for the year as the expected revenues and expenses of the Council include non-cash items which have been excluded from the Cash Flow Statement. The budgeted operating result is reconciled to budgeted cash flows available from operating activities as set out in the following table. Forecast Actual 2013/2014 $’000 Budget 2014/2015 $’000 Variance $’000 Surplus (deficit) for the year 8,361 12,069 3,708 Depreciation 29,844 30,908 1,064 Net non-cash movement in current assets and liabilities (2,546) (7,794) (5,248) Cash flows available from operating activities 35,659 35,183 476 5.1.2 Investing Activities ($10.72 million decrease) The overall reduction in cash used for investing activities is as a result of decreased payments for property, plant and equipment due to the level of capital expenditure for 2014/2015 compared to forecast 2013/2014. The forecast for capital expenditure 2013/2014 includes the completion of a number of projects carried forward from 2012/2013. 5.1.3 Financing Activities ($3.37 million decrease) For 2014/2015 the total principal repayment is $2.14 million and other finance charges are $1.69 million. The 2014/2015 budget includes new borrowings of $4 million. Financing activities also includes lending of and repayment of approved loans for private heritage works and community organisations. 5.1.4 Cash and Cash Equivalents at End of the Year ($3.03 million decrease) Overall, total cash and investments are forecast to decrease by $3.031 million to $29.54 million as at 30 June 2015, reflecting Council’s strategy of using excess cash and investments to enhance service delivery and enable the renewal and upgrade of existing infrastructure, and the creation of new infrastructure. 5.2 Restricted and Unrestricted Cash and Investments Cash and cash equivalents held by Council are restricted in part, and not fully available for Council’s operations. The budgeted cash flow statement (refer note 5.1) indicates that Council is estimating at 30 June 2015 it will have cash and investments of $29.54 million, which are restricted as shown in the following table. Ref Forecast Actual 2013/2014 $’000 Budget 2014/2015 $’000 Variance $’000 Total cash and investments 32,570 29,537 (3,033) Restricted cash and investments - Statutory & Discretionary reserves 5.2.1 22,561 20,876 (1,685) - Trust Deposits 5.2.2 2,649 2,675 26 Unrestricted cash and investments 5.2.3 7,360 5,986 (1,374) Greater Bendigo City Council Budget – 2014/2015 31
Page 1 and 2: City of Greater Bendigo Annual Budg
Page 3 and 4: ADDENDUM This addendum should be re
Page 5 and 6: Introduction from the Mayor, Cr Bar
Page 7 and 8: 3. Cash and Investments Cash and in
Page 9 and 10: 7. Council Expenditure Allocations
Page 11 and 12: 1. Linkage to the Council Plan This
Page 13 and 14: 1.3 Themes and Strategic Objectives
Page 15 and 16: People and Performance Contracts an
Page 17 and 18: Initiatives Initiatives 9) Employ S
Page 19 and 20: Presentation and Works Bendigo Live
Page 21 and 22: Roads Satisfaction Satisfaction wit
Page 23 and 24: 2.5 Theme 5 - Sustainability Sustai
Page 25 and 26: 2.6 Major Initiatives Major Initiat
Page 27 and 28: 3.4 Internal Influences There are a
Page 29 and 30: 4. Analysis of Operating Budget 4.1
Page 31 and 32: 4.2.4 Reimbursements ($.006 million
Page 33: 4.3.1 Employee Benefits ($5.36 mill
Page 37 and 38: 6. Analysis of Capital Budget This
Page 39 and 40: 6.1.6 Public Furniture and Fittings
Page 41 and 42: 7. Analysis of Budgeted Financial P
Page 43 and 44: 7.1.4 Working Capital ($0.69 millio
Page 45 and 46: Key to Forecast trend above: + Fore
Page 47 and 48: Expenditure level Revenue level Wor
Page 49 and 50: 9. Rating Information This section
Page 51 and 52: The commercial/industrial propertie
Page 53 and 54: The City of Greater Bendigo also ha
Page 55 and 56: In preparing the Capital Works prog
Page 57 and 58: APPENDIX A Appendix A - Budgeted St
Page 59 and 60: APPENDIX A Budgeted Balance Sheet -
Page 61 and 62: APPENDIX A Budgeted Capital Works S
Page 63 and 64: APPENDIX A Budgeted Statement of Hu
Page 65 and 66: APPENDIX B Rates and Charges 1. Rat
Page 67 and 68: APPENDIX B 1.5 The number of assess
Page 69 and 70: APPENDIX B 1.11 The estimated total
Page 71 and 72: APPENDIX B 2.4 General Rate Having
Page 73 and 74: APPENDIX B General Land; Commercial
Page 75 and 76: APPENDIX B The use of the land with
Page 77 and 78: APPENDIX C Capital Works Program Fo
Page 79 and 80: APPENDIX C Capital Works Area NEW W
Page 81 and 82: Capital Works Program (Detailed) Ca
Page 83 and 84: Capital Works Area Project Descript
Page 85 and 86:
Capital Council Works Project Descr
Page 87 and 88:
Capital Council Works Project Descr
Page 89 and 90:
APPENDIX D D - 1 COMMERCIAL/INDUSTR
Page 91 and 92:
APPENDIX E Appendix E - Capital Eva
Page 93 and 94:
APPENDIX E For the 2014/2015 financ
Page 95 and 96:
APPENDIX F Term Definition Financia
Page 97:
APPENDIX F Term Definition needs of
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City of Greater Bendigo Annual Budget 2014/2015

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