Brimbank Council Meeting No. 641 - 10 December 2024
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12.3
Quarter 1 Budget Report (July/Aug/Sept) 2024
12.3
Quarter 1 Budget Report (July/Aug/Sept) 2024
Directorate
Corporate Services
Director
Mark Stoermer
Manager
Andrew Brae
Attachment(s)
1. CR Quarterly Budget Report - 30 September 2024
[
12.3.1
- 13 pages]
Purpose
For Council to note the Quarterly Budget Report and accompanying statements for the
period ending 30 September 2024.
Officer Recommendation
That Council notes the Quarterly Budget Report and accompanying statements
for the period ending 30 September 2024, at Attachment 1 to this report.
Matters for Consideration
For Council to note the Quarterly Budget Report and accompanying statements for the
period ending 30 September 2024, as per
Attachment 1
to this report.
Analysis
Operating Performance
The Annual Budget for the 2024/25 financial year has an operating surplus of $1.77
million.
The year to date (YTD) operating surplus of $167.54 million is $12.10 million or 7.79%
favourable to the YTD Budget of $155.43 million. Rates and Charges income is fully
recognised at the start of the year which inflates the YTD surplus at the beginning of the
year.
Current full year forecast estimates an operating surplus of $9.56 million, being $7.79
million or 438.95% favourable to the Annual Budget.
The favourable variance is mostly driven by the net of:
Total Income $8.07 million favourable to full year budget, made up of:
o
$2.79 million Grants and Contributions carried forward from 2023-24
financial year;
o
$1.55 million increase in Supplementary Rates mainly due to additional
rates received from subdivision of Orica site;
o
$1.63 million unbudgeted Capital Grants mainly relating to Old Geelong
Road Rehabilitation;
o
$0.76 million additional VGC funding; and
o
$0.63 million increase in User fees mainly due to additional BAWC income
Total Expenses $0.28 million unfavourable to full year budget, made up of:
o
$0.94 million unfavourable Material Services mainly due to additional
Agency expenses of 0.4 million and Contractor expenses of $0.25 million.
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o
$1.28 million favourable Employee expenses mainly due to staff
vacancies
Capital Performance
The 2024/25 Annual Budget is $61.36 million, comprising of $58.67 million of Capital
Works projects and $2.69 million carried forward from the 2023/24 financial year.
YTD Capital Works actual expenditure is $5.04 million against a budget of $3.77 million,
variance of ($1.27) million, driven mainly by YTD expenditure beyond forecast in
Recreation, Leisure and Community Facilities ($0.18) million, Parks Open Space &
Streetscapes ($0.54) million, Roads ($0.74) million, Buildings ($0.21) million and
Stormwater Drainage ($0.39) million. This was partly offset by under spend in Plant
Machinery & Equipment of $0.84 million.
The YTD external funding is $2.72 million comprising recurrent and non-recurrent grants
and contributions. Total full year external funding is forecasted at $5.18 million.
The full year capital expenditure forecast estimates expenditure of $63.52 million being
($2.16) million higher than budget. Officers expect the overall expenditure to be
managed, to fall within the budgeted allocation, by the end of financial year.
Cash Position
The YTD cash balance is $93.98 million comprising an opening balance of $77.97 million
at 1 July 2024 and year-to-date net inflows of $16.02 million.
The forecast closing cash at bank for the year ending 30 June 2025 is $80.74 million
which is $450k higher than the budgeted closing cash at bank of $80.29 million. Section
2 of attached report provides a detailed analysis on the variances to budget.
Key Financial Ratios
Details of key financial ratios are:
Indicator
Measure
Budget
2024/25
Forecast
Risk
Adjusted
underlying
result
Underlying net
surplus (or
deficit) /
Adjusted
Underlying
Revenue
-3%
-1%
Medium
Underlying
Result
Underlying
surplus
(deficit)/ Total
revenue
1%
4%
Low
Internal
Financing
Net Operating
cash flow / Net
Capital
Expenditure
101%
104%
Low
Capital
Replacement
Capital
expenditure /
Depreciation
1.09
1.13
Medium
Asset Renewal Asset renewal
expenditure /
Depreciation
0.91
0.90
Medium
Indicator
Measure
Budget
2024/25
Actual YTD Risk
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Liquidity
Current assets
/ Current
liabilities
1.79
4.27
Low
Indebtedness Non-current
liabilities / Own
source revenue
35.81%
38.33%
Low
Adjusted Underlying Result
This measures an entity’s ability to generate surplus in its ordinary course of business,
excluding non-recurrent capital grants, non-monetary asset contributions and other
contributions to fund capital expenditure from its net result. A surplus or increasing
surplus suggests an improvement in the operating position.
The forecast result of -1% indicates a medium risk and this can indicate a risk of long
term run down to cash reserves and inability to fund asset renewal
Underlying Result
A positive result indicates a surplus. The larger the percentage, the stronger the result.
A negative result indicates a deficit. The result indicates Council’s core financial
performance and sustainability in providing ongoing services. Operating deficits cannot
be sustained in the long term. The forecast result of 4% indicates a Low risk.
Internal Financing
This measures an entity’s ability to finance capital works from generated cash flow. The
forecast result of 104% indicates a Low risk.
Capital Replacement
This is a long-term indicator measuring how well Council is reinvesting in or replacing its
assets, indicating if asset renewals match or exceed depreciation over time, ensuring
infrastructure sustainability. The forecast result of 1.13 indicates a medium risk and that
spending is faster than the depreciation rate. This result should be read with caution as
it is important to note that only 59% of the overall capital budget was identified as
renewal and upgrade expenditure.
Asset Renewal
This indicator measures spending on renewing existing assets compared to depreciation,
indicating if the council is adequately maintaining infrastructure to meet community
needs sustainably. The forecast result of 0.90 indicates a medium risk and is constant
with only 59% of the overall forecasted capital budget identified as renewal and
upgrade. This would suggest that there is moderate spending on the renewal and
upgrade of existing assets.
Liquidity
The actual result of 4.27 indicates a Low risk to Council. This is due to a change in
accounting treatment of rates income. The full amount of rates income is now recognised
when we issue the Annual Notice, instead of progressively recognising income over the
year which has significantly increased the rates debtors in current assets at the start of
the year. It is anticipated that the ratio will be in line with the budget at year end with
the payment of rates.
Indebtedness
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The Actual result of 38.33% indicates Low risk and that Council has the ability to repay
debt from its own revenue sources.
Community Engagement
The Annual Budget 2024/2025 was adopted by Council at the Council Meeting on 18
June 2024, following a community consultation process.
Resource And Risk Implications
Resource requirements can be met within the Annual Budget 2024/2025.
Financial:
significant financial impacts
• Yes - Council must ensure that it has implemented the principles of sound financial
management including prudently managing financial risks faced by Council, pursuing
spending and rating policies consistent with a reasonable degree of stability, ensuring
decisions are made and actions taken having regard for the financial effects on future
generations, and ensuring full, accurate and timely disclosure of financial information
relating Council. This report addresses the risks associated with demonstrating Council’s
commitment to the principles of sound financial management by reviewing Council’s
financial position to the adopted budget, projecting a year end position to ensure overall
financial strength of Council and outlining to the community that Council is managing its
finances in a sustainable and responsible manner.
Regulatory:
legal, legislative or regulatory implications including the rights/obligations
of stakeholders
• Yes - The Quarterly Budget Report is a requirement under the
Local Government Act
2020.
Legislation/Council Plan/Policy Context
This report supports the Council Plan 2021-2025 strategic direction and objective of:
4. Leadership and Governance - A high performing organisation that enacts the
vision and decisions of Council through the delivery of quality and innovative
services - A fairer place for all
• Engaged and Responsive - Community insights are valued to enhance connection and
engagement with Council
• High Performing and Accountable - Our workforce strive to enhance services and
liveability for the Brimbank community.
This report complies with the
Local Government Act 2020
, Australian Accounting
Standards and Annual Budget 2024/2025.
Council officers contributing to the preparation and approval of this report, have no
conflicts of interests to declare.
1
The Quarterly Budget Report for September 2024 has been prepared in accordance with Australian Accounting Standards.
This report is designed to identify major variances against the September 2024 year to date budget.
The year to date and Annual Budget referred to in this report reflects the budget approved by Council on 18 June 2024 which
includes the carry forward funding for 2024/25 projects and capital works forward commitments.
Brimbank City Council
Quarterly Budget Report
September 2024
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Attachment 12.3.1
2
CONTENTS
SECTION 1: EXECUTIVE SUMMARY .............................................................................................................................3
SECTION 2: FINANCIAL REPORTS ..............................................................................................................................4
Income Statement ...........................................................................................................................................4
Balance Sheet .................................................................................................................................................6
Statement of Cash Flows...................................................................................................................................8
Capital Works Report ......................................................................................................................................10
SECTION 3: ENVIRONMENTAL UPGRADE AGREEMENT QUARTERLY REPORT .............................................................11
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Attachment 12.3.1
3
SECTION 1: EXECUTIVE SUMMARY
Operating Performance
The Annual Budget for the 2024/25 financial year has an operating surplus of $1.77 million.
The year to date (YTD) operating surplus of $167.54 million is $12.10 million or 7.79% favourable to the YTD Budget of $155.43 million.
Current
full year forecast
estimates an operating surplus of $9.56 million, being $7.79 million or 438.95% favourable to the Annual Budget.
The favourable variance is mostly driven by the net of:
•
Total Income $8.07 million favourable to full year budget, made up of:
o
$2.79 million Grants and Contributions carried forward from 2023-24 financial year;
o
$1.55 million increase in Supplementary Rates mainly due to additional rates received from subdivision of Orica site;
o
$1.63 million unbudgeted Capital Grants mainly relating to Old Geelong Road Rehabilitation;
o
0.76 million additional VGC funding; and
o
0.63 million increase in User fees mainly due to additional BAWC income
•
Total Expenses $0.28 million unfavourable to full year budget, made up of:
o
0.94 million unfavourable Material Services mainly due to additional Agency expenses of 0.4 million and Contractor expenses of 0.25 million.
o
1.28 million favourable Employee expenses mainly due to staff vacancies
Capital Performance
The 2024/25 Annual Budget is $61.36 million, comprising of $58.67 million of Capital Works projects and $2.69 million carried forward from the 2023/24 financial year.
YTD Capital Works actual expenditure is $5.04 million against a YTD budget of $3.77 million, a variance of ($1.27) million, driven mainly by expenditure greater than
forecasted in Recreation, Leisure and Community Facilities ($0.18) million, Parks Open Space & Streetscapes ($0.54) million, Roads ($0.74) million, Buildings ($0.21)
million and Stormwater Drainage ($0.39) million. This was partly offset by expenditure less than forecasted in Plant Machinery & Equipment of $0.84 million.
The YTD received external funding is $2.72 million comprising recurrent and non-recurrent grants and contributions. The total full year external funding is forecasted at
$5.18 million.
The full year capital expenditure forecast estimates an expenditure of $63.52 million, ($2.16) million higher than the adopted budget. Officers expect the overall
expenditure to be managed, to fall within the budgeted allocation, by the end of the financial year.
Cash Flow
The YTD cash balance is $93.98 million comprising an opening balance of $77.97 million at 1 July 2024 and year-to-date net inflows of $16.02 million.
The forecast closing cash at bank for the year ending 30 June 2025 is $80.74 million which is $450k higher than the budgeted closing cash at bank of $80.29 million. This is
due to the following:
•
Higher than budgeted net cash inflows of $3.83 million from operating activities comprising of:
o
Rates and Charges $1.55 million, Grants Operating & Capital $1.34 million, Contributions monetary $1.26 million and User Fees $627k. This is offset
by unfavourable outflow ($1.58 million) in Materials and Services.
•
Higher than budgeted outflow of cash of ($2.16 million) expected for Capital Works program. Refer to Capital Works section below for explanation.
•
Lower than Forecasted opening cash balance at 1st July 2024 of ($981K) driven by Rates, Grants and Employee Expenses in the previous year.
Above YTD budgeted revenue or under YTD budget expenditure
Below YTD budgeted revenue or over YTD budgeted expenditure <10%
Below YTD budgeted revenue or over YTD budgeted expenditure >10%
Status Legend
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Attachment 12.3.1
4
SECTION 2: FINANCIAL REPORTS
Income Statement
The year to date (YTD) September operating surplus is $12.10 million or 7.79% favourable to the YTD Budget.
The full year forecast is expected to be $9.56 million surplus which is $7.79 million or 438.95% favourable to the Annual budget. This is driven by;
Account Summary YTD Budget
Forecast
Rates and Charges
YTD Actual is
favourable
to YTD budget by $2.22 million or 1.18% mainly due to additional
supplementary rates revenue.
The full year forecast is $1.94 million favourable to
budget due to additional revenue from supplementary
rates.
User Fees
YTD User Fees are
favourable
to YTD budget by $559k or 11.02% predominately due to:
o
Additional income from Brimbank Aquatic & Wellness Centre (BAWC) of
$366k, outperforming the financial modelling developed during budgeting
o
Building Services $79k
o
City Planning $66k
The full year forecast is expected to be $627k favourable
to budget mainly due to additional revenue from
Brimbank Aquatic & Wellness Centre (BAWC).
Operating Grants
(Recurrent & Non
Recurrent)
YTD Operating Grants are
favourable
to YTD budget by $2.71 million or 15.88% mostly
due to a net of:
•
Increase of $1.36 million from prior year grants being carried over into the current
financial year. Some of the key drivers of this include:
o
Kindergarten Registration & Outreach $180k (CALD Outreach Workers
Initiative $68k, Kindergarten Central Enrolment $72k and DHHS Local
Planning & Change Management funding $40k);
o
Meals, Community and Home Support (CHSP) $178k;
o
Maternal & Child Health $387k (Sleep & Settling $148k, Universal $117k
and Enhanced $120k);
o
HACC Domestic Assistance (Coordination & Home Care) $114k;
o
Cooinda $78k;
o
PWMP - Peri-Urban Weed Management Partnership 2021 - 2025
Maribyrnong Valley Connection $51k;
o
Sustainability Victoria - Brimbank Improving Recycling and Promoting
FOGO $51k;
o
Maribyrnong Habitat Restoration $66k; and
o
Kororoit Connections $67k.
•
Received earlier than anticipated Public Libraries Funding $697K.
•
Increase in funding of $189k received from the Victorian Grants Commission
favourable to the budgeted amount.
The full year forecast for Operating Grants is expected to
be
favourable
to budget by $2.33 million. This is mainly
due to a net of:
•
$1.36 million increase due to unbudgeted grants
brought forward from financial year 2023/24; and
•
$757k increase in funding received from the
Victorian Grants Commission.
Capital Grants
Recurrent & Non
Recurrent
YTD Capital grants were favourable to budget by $770k mainly due to a combination of
unbudgeted grants received and prior year grants being carried over into the current year,
including:
•
Brought forward grants of $397k mostly for:
o
Sunshine Transport Precinct Activate $276k;
o
Lionheart Reserve Tennis Pavilion $70k; and
o
Southwold Street Kindergarten Inclusive Playground Upgrade $20k.
•
Unbudgeted $240k Lowe Cresent Neighbourhood Park Upgrade; and
The full year forecast is expected to be favourable to
budget by $774k due to:
•
Increase in grants due to prior year grants
carried over from 2023/24 financial year of
$397k;
•
$240k unbudgeted funding for Lowe Cresent
Neighbourhood Park Upgrade; and
•
Deer Park West Kindergarten Modular
Extension $75k.
Above YTD budgeted revenue or under YTD budget expenditure
Below YTD budgeted revenue or over YTD budgeted expenditure <10%
Below YTD budgeted revenue or over YTD budgeted expenditure >10%
Status Legend
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Attachment 12.3.1
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•
Unbudgeted $105k - North Sunshine Kindergarten – Decanting.
Account Summary YTD Budget
Forecast
Contributions - cash YTD Contributions - Cash $2.17 million favourable against year to date budget mainly due
to:
•
Brought forward contributions of $1.03 million from the financial year 2023-24:
o
Community Batteries Grant Program $345k;
o
Victorian Energy Collaboration Project Funds, Regulatory Fees &
Government Charges $202k;
o
Stormwater Harvesting Partnership program $185k;
o
Western Alliance Greenhouse Action $130k;
o
Milestone 2 Payment for Brimbank Aquatic and Wellness Centre Project
$60k;
o
Biodiversity Planning - Bridge & Marine S173 Agreement - site 103 Reid
St $59k; and
o
Translocation of Spiny Rice Flower - MAR to Pioneer Park $32k.
•
Unbudgeted Road Rehabilitation grant – Old Geelong Road - $1.25 million
The full year forecast is expected to be $2.30 million
favourable to budget predominantly due to:
•
Brought forward $1.03 million from 2023-24
financial year; and
•
Unbudgeted Road Rehabilitation grant – Old
Geelong Road - $1.25 million.
Employee Expenses YTD Employee expenses were favourable to YTD budget by $939k or 3.65% mainly due to
delays in filling vacant positions across the Council.
•
Significant underspend in employee expenses were in the following areas:
o
BAWC $328k
o
CIO $278k
o
City Compliance Group $225k
o
Maternal Child Health $182k
The above saving is offset by Agency Costs of ($860k) included in Materials and services
mainly in CIO ($494k), Building Services Group ($92k), Roads Maintenance ($80k), City
Compliance ($67k) and various others.
The full year forecast is expected to be $1.28 million
favourable to budget driven by:
•
Underspend in employee expenses by $501k
across the Council;
•
Savings of $775k in Work-Cover premium
have been achieved through a continued
focus on injury prevention and effective
claims management. This improvement in
claims performance, along with a strategic
decision to switch to an insurer with a
proactive approach to challenge claims, has
contributed significantly to reducing premium
costs.
Materials and services YTD Materials and Services expenditure was underspend to YTD budget by $2.95 million or
15.56% across the Council mainly due to change of program delivery and /or delays in
providing services than projected. Key drivers were:
•
External Standard Contract $1.02 million mainly in Tree Planting area $394k
due to timing of planting, Waste Services Management $190k due to bin
delivery & repair contract being of an ad-hoc nature and various other programs
being under budget.
•
Tip Fees of $394k mainly within the Refuse area due to reduced landfill
volumes, reduced green waste due to warmer and drier conditions and lower
than expected hard waste.
•
Admin Expenses $339k across the council.
•
Consultants $241k mainly in the Assets and CIO areas.
•
Repairs & Maintenance $200k under spend in Building Maintenance, Workshop
Operations and Aquatics Operations due to ad-hoc nature of work.
•
External Variation Contract Payment $123k due to timing of payment of
invoices in Buildings Cleaning
•
Lower than anticipated Public / Lighting Operating costs of $114k due to use of
energy efficient LED lighting.
•
Fire Boards Contribution $100k in Corporate Operations area.
The full year Forecast is expected to be (1.1 million)
unfavourable to budget driven by:
•
Increase in Agency Costs by ($382k) mostly
in Building Services Group ($120k) and
Roads Maintenance ($80k) to cover staff
backfill.
•
External Standard Contract by ($136k)
mainly in Roads Maintenance due to
additional Contractor works and Park
Services due to increase in prices of
powerline clearance.
•
Increase in Consultants by ($124k) mostly in
People & Performance ($45k), Community
Involvement / Conservation ($40k) and
Paramount Rectification Works ($31k).
•
External Contract Fee ($118k) mainly in the
Parks Services area.
•
Lease Hire Machinery ($65k).
•
Additional accident vehicle repairs of ($44k)
made up of Kerbside Recycling and various
others.
•
Additional Memberships / Subscriptions of
($38k) in the fleet relating to a requirement
to upgrade plant connectivity from 3G to 4G.
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Attachment 12.3.1
6
Balance Sheet
Victorian Auditor-General’s Office Sustainability Indicators
Adjusted Underlying
Result
This measures an entity’s ability to generate surplus in its ordinary course of business, excluding non-recurrent
capital grants, non-monetary asset contributions and other contributions to fund capital expenditure from its net
result. A surplus or increasing surplus suggests an improvement in the operating position.
The forecast result of -1% indicates a Medium risk.
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Attachment 12.3.1
7
Underlying Result
A positive result indicates a surplus. The larger the percentage, the stronger the result. A negative result
indicates a deficit. The result indicates Council’s core financial performance and sustainability in providing ongoing
services. Operating deficits cannot be sustained in the long term. The forecast result of 4% indicates a Low risk.
Internal Financing
This measures an entity’s ability to finance capital works from generated cash flow. The forecast result of 104%
indicates a Low risk.
Capital Replacement
This compares the rate of spending on new infrastructure, property, plant and equipment with its depreciation.
Ratios higher than 1 indicate that spending is faster than the depreciating rate.
This is a long-term indicator measuring how well Council is reinvesting in or replacing its assets, indicating if asset
renewals match or exceed depreciation over time, ensuring infrastructure sustainability. The forecast result of
1.13 indicates a Medium risk and that spending is faster than the depreciation rate. This result should be read
with caution as it is important to note that only 59% of the overall Forecasted capital budget was identified as
renewal and upgrade expenditure.
Renewal gap
This indicator measures spending on renewing existing assets compared to depreciation, indicating if the council
is adequately maintaining infrastructure to meet community needs sustainably.
The forecast result of 0.90 indicates a Medium risk and is constant with only 59% of the overall Forecasted capital
budget identified as renewal and upgrade. This would suggest that there is moderate spending on the renewal
and upgrade of existing assets.
Liquidity
This measures an entity’s ability to pay existing liabilities in the next 12 months.
The actual result of 4.27 indicates a Low risk to Council. This is due to a change in accounting treatment of rates
income. The full amount of rates income is now recognised when we issue the Annual Notice, instead of
progressively recognising income over the year which has significantly increased the rates debtors in current
assets at the start of the year. It is anticipated that the ratio will be in line with the budget at year end with the
payment of rates.
Indebtedness
This assesses an entity’s ability to pay the principal and interest on its borrowings when they are due from the
funds it generates. The lower the ratio, the less revenue the entity is required to use to repay its total debt.
The Actual result of 38.33% indicates Low risk and that Council has the ability to repay debt from its own revenue
sources.
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Attachment 12.3.1
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Statement of Cash Flows
The YTD cash balance is $93.98 million comprise an opening balance of $77.97 million at 1 July 2024 and year-to-date net inflows of $16.02 million.
The forecast closing cash at bank for the year ending 30 June 2025 is $80.74 million which is $450k higher than the budgeted closing cash at bank of $80.29 million. This is
due to the following:
•
Higher than budgeted net cash inflows of $3.83 million from operating activities comprising of net off:
o
Rates and Charges $1.55 million
o
Grants Operating & Capital $1.34 million
o
Contributions monetary $1.26 million
o
User Fees $627k, offset by:
o
Unfavourable outflow ($1.58 million) in Materials and Services
•
Higher than budgeted outflow of cash of ($2.16 million) expected for Capital Works program. Refer to Capital Works section below for explanation.
•
Lower than Forecasted opening cash balance at 1
st
July 2024 of ($981K) driven by Rates, Grants and Employee Expenses in the previous year.
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Attachment 12.3.1
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Cash Balance Commitments
The following table outlines the cash balance commitments of the forecast cash position.
After taking into consideration restricted cash and discretionary reserves there is a predicted positive net cash balance of $29.16 million.
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Attachment 12.3.1
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Capital Works Report
Full Year
The 2024/25 Adopted Capital Works Budget is $61.36 million, comprising of $58.67 million of Capital Works projects funded in the 2024/25 financial year and $2.69 million
carried forward from the 2023/24 financial year.
The Capital Works forecasted expenditure is $63.52 million, which is ($2.16) million more than the adopted budget, in part due to Carry Forward Variations from 2023-24
of ($1.76) million. Officers expect the overall expenditure to be managed, to fall within the budgeted allocation, by the end of the financial year.
Year to Date
Total Actual YTD Expenditure is $5.04 million, or 8.2% of the adopted budgeted amount. This is ($1.27) million or 33.72% above YTD Budget. Expenditure contributing to
this includes;
•
Recreation Leisure Community Facilities actual expenditure is ($0.18) million over the YTD budget.
•
Parks Open Space & Streetscapes actual expenditure is ($0.54) million over the YTD budget.
•
Stormwater Drainage actual expenditure is ($0.39) million over the YTD budget.
•
Roads actual expenditure is ($0.74) million over the YTD budget.
•
Buildings actual expenditure is ($0.21) million over the YTD budget.
•
Plant & Machinery actual expenditure is $0.84 million under the YTD budget.
The Capital Works Program encompasses a mixture of projects and programs. Many of these programs are made up of several projects contributing to the total number of
projects within the entire capital works program. The 2024/2025 Capital Works Program comprises 212 new and ongoing projects, including 15 carried forward projects
from June 30, 2024, that are set for completion this year.
As of the 30 September 2024, no projects have been reported as being complete.
No approved budget variations, budget savings, or carry-forward projects have been identified. However, risk assessments indicate that the following projects may face
cost overruns, major scope changes, or may not be completed within the financial year:
•
Isabella Williams Bridge (Project ID 1418) - Project on hold to enable additional review of options, given escalating costs.
•
Sunshine Leisure Centre Upgrade and Renewal Works (Project ID 796) - On hold to enable review of scope and costs as Tender responses not viable.
Officers will report back with further details on projects at risk and any other changes to the program and projects throughout the year.
Program Highlights YTD
•
Robertson's Homestead Restoration
Restoration work has started on Robertson's Homestead, with construction underway. The project is progressing well, with the project's YTD expenditure at
15% of the allocated budget.
•
Skate, Scoot, and BMX Facilities Program
The contract has been awarded for upgrades to Balmoral Skate Park, with work set to start in early 2025.
•
Flagship Park Upgrade - Kevin Flint Memorial Reserve
Construction at Kevin Flint Memorial Reserve started in September 2024. The project is progressing well through the construction phase, with the project's YTD
expenditure at 46% of the allocated budget.
•
Footpath Rehabilitation Program
This ongoing program rehabilitates footpaths throughout the municipality. The program is progressing well, with a significant portion of the allocated budget
already spent.
•
Road Pavement Asphalt Overlay Projects
Various road resurfacing projects have been completed and with procurement underway for further resurfacing works.
•
Sports Ground Irrigation Upgrade
The contract has been awarded for the new irrigation system and warm-season grass conversion at Churchill Reserve, with construction scheduled to commence
in October 2024.
Above YTD budgeted revenue or under YTD budget expenditure
Below YTD budgeted revenue or over YTD budgeted expenditure <10%
Below YTD budgeted revenue or over YTD budgeted expenditure >10%
Status Legend
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Attachment 12.3.1
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•
Female Sports Facilities Upgrades - Keilor Park Oval 2
The structure installation for Keilor Park Oval upgrades is in progress, with approximately 50% of the YTD budget spent.
•
Lionheart Reserve Tennis Pavilion Upgrade
Construction has begun on the Lionheart Reserve tennis pavilion upgrade, with construction progressing as scheduled.
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Attachment 12.3.1
12
T
Environmental Upgrade Agreement Quarterly Report
An Environmental Upgrade Agreement (EUA) is a financing agreement to improve the environmental performance of a commercial building. The agreement is between a financial institution,
a property owner and Council.
The financial institution advances funds to a commercial property owner to undertake upgrade works. The commercial property owner then makes repayments through their Council rates.
The benefit of Council involvement is that the loan is attached to the Council rates for the commercial property, and therefore has a high level of security. This security enables the financial
institution to offer very attractive loan terms.
To be eligible for a EUA the building:
- Must have been rateable premises for the past two years.
- Must be commercial premises with a minimum of 50% of the building operating as commercial.
- Must not have been in arrears with rate payments for the past three years.
- Must not be owned through a superannuation trust.
- Tenanted commercial buildings are eligible
This report provides an update on the Environmental Upgrade Agreements involving Council, as required by the Local Government Act.
In accordance with the Local Government Act 1989, Section 138 Quarterly Statements,
(1) At least every 3 months, the Chief Executive Officer must ensure that a statement comparing the budgeted revenue and expenditure for the financial year with the actual revenue
and expenditure to date is presented to the Council at a Council meeting which is open to the public.
(2) The regulations may prescribe matters to be included in the statement.
The Local Government Act 1989 further requires under Section 181G, Quarterly Statement that:
The Chief Executive Officer must ensure that a statement prepared under section 138 includes a record of the following—
a) each environmental upgrade agreement entered into in the last quarter, and the rateable land to which the agreement relates;
b) each environmental upgrade charge approved in respect of the agreements referred to in paragraph (a), and the value of the charges;
c) the total number of environmental upgrade charges in operation in the last quarter;
d) the total value of all environmental upgrade charge payments that have fallen due and have not been paid;
e) the total value of all environmental upgrade charge payments that are yet to fall due.
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Attachment 12.3.1
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Reporting requirement
Status as at 30th September
2024
a) Each environmental upgrade agreement entered into in the last
quarter, and the rateable land to which the agreement relates
$0
b) Each environmental upgrade charge approved in respect of the
agreements referred to in paragraph (a), and the value of the
charges
$17,943.31
c) The total number of environmental upgrade charges in operation in
the last quarter;
7
d) The total value of all environmental upgrade charge payments that
have fallen due and have not been paid;
$0
e) The total value of all environmental upgrade charge payments that
are yet to fall due.
$496,157.67
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Attachment 12.3.1
