City of Greater Bendigo Budget 2015/2016

4. Analysis of Operating Budget
4.1 Budgeted Income Statement
Ref
Forecast
Actual
2014/15
$’000
Budget
2015/16
$’000
Variance
$’000
Operating Revenue 4.2 183,404 187,308 3,904
Operating Expenditure 4.3 (175,395) (156,855) 18,540
Surplus (Deficit) for the year 8,009 30,453 22,444
Grants – Capital 4.2.8 (5,738) (14,171) (8,433)
Contributions – Non Monetary (10,881) (11,391) (510)
Underlying Result – Surplus/(Deficit) (8,610) 4,891 13,501
4.1.1 Underlying Result ($13.5 million increase)
The underlying result is the net surplus or deficit for the year adjusted for capital grants,
contributions of non-monetary assets and other once off adjustments. It is a measure of financial
sustainability as it is not impacted by non-recurring or once off items of revenues and expenses
which can often mask the operating result.
The underlying result for the 2015/16 year is a surplus of $4.89 million compared to the 2014/15
forecast deficit of $8.61 million. This improved financial result is heavily influenced by the
completion of the UIumbarra Theatre in April 2015 and substantial costs incurred in 2014/15 for
other major projects such as the Lighting the Regions initiative as well as timing of other major work
projects (refer 4.3.2).
4.2 Revenue
Revenue Types
Ref
Forecast
Actual
2014/15
$’000
Budget
2015/16
$’000
Variance
$’000
Rates and charges 4.2.1 93,592 99,421 5,829
Statutory fees and fines 4.2.2 3,312 3,888 576
User charges, fees and fines 4.2.3 23,572 22,963 (609)
Reimbursements 4.2.4 267 1,349 1,082
Contributions – cash 4.2.5 10,513 7,336 (3,177)
Contributions - non monetary assets 4.2.6 10,881 11,391 510
Government Grants - operating 4.2.7 34,084 25,255 (8,829)
Government Grants - capital 4.2.8 5,738 14,171 8,433
Interest revenue 4.2.9 1,445 1,534 89
Total Revenue 183,404 187,308 3,904
28 Greater Bendigo City Council Budget – 2015/16