6002H
Variance Report on Rate Setting Statement
Month Ending 31 October 2013
by Program
Variances are based on ‘Actual’ income received or expenditure expended compared
to revised budgets for the period.
For the year ended 30 June 2013, the City achieved a surplus of $944,344. This was
against a budgeted surplus of $1.8m when setting the 2013/2014 budget. This now
represents an $855,656 shortfall that will need to be addressed during the 2013/2014
mid year budget review and when setting the 2014/15 budget.
Operating Revenue (includes Operating & Capital)
Law, Order, Public Safety – Positive Variance $106,656
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$30,889 - Increased revenue from new Cat license fees.
$66,976 - Increased revenue from increased charges to Dog license fees.
Recreation and Culture – Positive Variance $94,937
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$74,495 - Increase in Membership fees in Leisure Fit Booragoon from increase in
memberships.
$130,858 - Increase in Term/Season fees in Leisure Fit Booragoon from increase
in activity.
$66,130 - Income for Commercial Lease for the Norma Road Depot Site under
budget because invoices were raised in November.
Transport – Negative Variance $108,149
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$45,920 - Recovery Works for Crossover Construction not commenced.
$22,435 - Recovery Works for State Black Spot not commenced.
$13,583 - Boat Ramp Parking fees income under budget from decrease in activity.
Other Property and Services – Positive Variance $1,298,202
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$1,382,875 - Proceeds from unbudgeted sale of land at 35, St Michael Terrace
(20A and 20B Queens Road), Mt Pleasant. This will be rectified in November with
the net proceeds transferred to the Land & Property Reserve.
6002H
Operating Expenditure
Governance – Positive Variance $458,339
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$32,378 - Maintenance/Construction Overheads are under budget because of
annual leave and overhead recoveries. This process is currently being reviewed by
Financial Services to ensure correct overhead rates are applied.
$69,356 - Engineering Design Staff Time is over recovered. Program will need to
be reclassified to Transport.
$51,767 - Elected Member Special Projects under budget.
$42,904 - Elected Member Conference Attendance Expenses under budget.
$40,972 - Planning Administration under budget due to savings in salaries for
acting replacement for a staff on maternity at a lower level.
$66,699 - Licensing and Data Line Rental expenses in Communication & Licensing
under budget as invoices were processed in November.
$135,039 - Recovery in Contract Supervisor in Asset Management under
recovered due to Project Management in Time Sheets starting in November and
work will be done to back date from July to October.
Law, Order, Public Safety – Positive Variance $59,153
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$39,939 - Community Security is under budget due to staff vacancies.
$23,310 - Safer City and Crime Prevention is under budget due to staff vacancies.
Education & Welfare – Positive Variance $190,822
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$23,040 - Community Development Admin is under budget.
$27,000 - Relocation Community Groups Project is under budget.
Community Amenities – Positive Variance $644,888
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$108,507 - Bulk Verge Collection is under budget. Budget is being reviewed to
reflect the busy time of collections being September to December.
$58,534 - Recycling Collection Domestic under budget because of misallocation in
salary expense, cutting down the amount of overtime resulting in savings and
reduction in over compaction charges in waste processing expenses.
$92,238 - SUP Project: Canning Bridge under budget due to timing variance.
$76,933 - SUP Project Garden City is under budget due to timing variance.
$66,349 - SUP Project Property Rationalisation is under budget due to timing
variance.
Recreation and Culture – Positive Variance $829,686
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$87,773 - Melville Recreation Centre is under budget due to a delay in journaling
Marketing expenditure from Organisational Development.
$130,610 - Melville Aquatic Fitness Centre is under budget in contract payments
due to a delay in journaling in Marketing expenditure from Organisational
Development .
$53,997 - Kids Sport is under budget due to project delays and seasonal spending
expected in January and February 2014.
6002H
Operating Expenditure (cont.)
Transport – Positive Variance $614,494
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$359,568 - Street Trees Pruning & Maintenance is under budget because of a
change of scope in tender pricing methods and may result in longer term savings
in contractor payments.
$62,608 - Herbicide Operations are under budget due to the current tender being
terminated. The new tender was awarded by the CEO under delegated authority
on the recommendation of CTAU on 12 November 2013.
Economic Services – Negative Variance $51,464
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$54,797 - South West Group over budget because of outstanding recoup from
South West Group in November 2013.
Other Property and Services – Positive Variance $229,301
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$77,711 - Civic Centre is under budget in Contract Payments and electricity
expenses because of delays in receiving invoices.
$104,985 - Fleet Running Costs is under budget due to timing variance in the
Caltex Fuel Import clearing account.
Fleet : $50,477 - Fleet Expenditure under budget in Allocation on cost: Operation
overheads because of delays in journaling Unifleet. $58,440 - under budget in
Allocation Motor Vehicle due to delay in receiving insurance invoices.
6002H
Capital Expenditure
Purchase of Furniture & Equipment - Positive Variance $658,119
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$107,462 - Furniture & Equipment under budget due to delay in refurbishment
of Civic Square Library with anticipated expenditure in January to March 2014.
$53,133 - Public Arts Program under budget.
$293,879 - Recreation Equipment under budget due to large gym equipment
tender in progress.
$60,125 - RFID Self Check under budget awaiting invoices for Canning Bridge
Library. Refurbishment of Civic Square Library and Willagee Library to be
completed before installing the RFID Self Check.
$35,000 - Parking Meters under budget due to tender delays. This is now
awarded and the installation of parking meters is expected to start in
December 13 or January 2014.
$32,333 - Bins Surrounds under budget, awaiting requisition approval for Point
Walter Bins.
Purchase of Plant & Equipment – Positive Variance $527,934
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$462,895 - Heavy Plant under budget due to the processing of invoices in
November and the pending delivery of four trailers. Payment is expected
between December 2013 to March 2014.
$66,291 - Parks and Miscellaneous over budget as the payments were
budgeted to be made in December 2013.
Purchase of Land & Buildings – Positive Variance $447,889
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$159,754 - Melville Leisure Fit Booragoon Pool Plant under budget due to
project delay.
$308,577 - Melville Leisure Fit Booragoon Solar under budget due to a delay
in the project. Contract has now been awarded. Planning and preparation is
being undertaken to physically commence work on site.
6002H
Capital Expenditure (cont.)
Purchase of Infrastructure Assets – Positive Variance $1,069,237
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$125,801 - Contaminated Sites under budget, awaiting invoices from the
contractors for the ongoing work.
$112,289 - Environment under budget due to hold up in design of the Pt
Walter Foreshore project. The project is scheduled to be completed by
December 2013.
$42,155 - Jetty & Board under budget due to a delay in program. This is
expected to commence in January 2014.
$195,445 - Streetscapes under budget with anticipated expenditure in March
to June 2013.
$301,410 - Playgrounds under budget due to a delay in the program. This is
expected to commence in January 2014.
Total $285,589: $172,370 - Park Improvement under budget due to delay in Pt
Walter Foreshore Park Upgrade and Turf Reduction Program with project
scheduled to commence after summer 2014; $61,593 - Heathcote
Embankment Stage 2 with work in progress with funds committed; $49,545 Deep Water Point Upgrade under budget due to Brief For Site Analysis
currently out for quote with scheduled start project in late November 2013 and
complete in late February 2014.
$85,975 - Paths under budget. Footpath replacement Program to be walked
through in November and expected to start in January 2014.
$57,658 - Street and Park under budget, awaiting invoices for outstanding
accruals for Kadidjiny Park.
$84,240 - Parking under budget, awaiting invoices for Durdham Road Parking.
$65,573 - Park Lighting under budget with scheduled date of completion by
December 2013.
$57,765 - Stormwater: Deep Water under budget. The project has been
completed and the funds will be reallocated in Mid Year Budget Review.