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729

Adopted Report of the

Special Budget Committee Meeting held on

Monday 30 January 2017

at

9am

City of Gold Coast Council Chambers 135 Bundall Road Surfers Paradise

729th Council Meeting 31 January 2017 2 Special Budget Committee Meeting 30 January 2017 Adopted Report

Index

Adopted Report

Special Budget Committee Meeting

Monday 30 January 2017

Item Direct. File Page Subject

Open Session

1 OCEO FN334/375/18(P1) 4 Monthly Financial Report – November 2016

2 OCEO FN334/375/18(P1) 14 Monthly Financial Report – December 2016

3 GCWW FN334/252/17(P6) 24 Waste Management Services December 2016 Budget Review

4 GCWW FN334/252/17(P6) 41 Water and Sewerage Services – December 2016 Budget Review

Closed Session

5 OCEO FN334/375/18(P1) 62 December 2016 Budget Review

KEY:

OCEO - Office of the Chief Executive Officer

CI - City Infrastructure GCWW Gold Coast Water & Waste CS - Community Services OS - Organisational Services EDMP - Economic Development & Major

Projects PE - Planning & Environment

729th Council Meeting 31 January 2017 3 Special Budget Committee Meeting 30 January 2017 Adopted Report ADOPTED BY COUNCIL 31 JANUARY 2017 RESOLUTION G17.0131.023 moved Cr Tate seconded Cr Owen-Jones That the Report of the Special Budget Committee’s Recommendations of Monday 30 January 2017, numbered B17.0130.001 to B17.0130.005, be adopted.

CARRIED UNANIMOUSLY

ATTENDANCE Cr T R Tate (Chairperson) Cr D Gates Cr W M A Owen-Jones Cr C M Caldwell Cr K L Boulton Cr P J Young Cr D M Crichlow OAM Cr G J Baildon AM Cr R La Castra Arrived at 9.10am Cr G M Tozer Cr P A Taylor Cr H H C Vorster Cr P C Young Cr D I McDonald Cr G M O’Neill Mr A J McCabe Chief Operating Officer Mr A Twine Director City Infrastructure Ms A Ewens Director Community Services Mr P Heaton Director Gold Coast Water & Waste Mr G Potter Director Organisational Services Ms D Currie Director Planning & Environment Mr J Reeves Acting Manager Corporate Finance Ms C Watt Executive Coordinator Legal Services (part) Mr R Jacobs Manager Parks & Recreational Services (part) Mr B Madden Manager Property Services (part) APOLOGY / LEAVE OF ABSENCE Nil PRESENTATIONS Nil

729th Council Meeting 31 January 2017 4 Special Budget Committee Meeting 30 January 2017 Adopted Report ITEM 1 OFFICE OF THE CHIEF EXECUTIVE OFFICER NOVEMBER 2016 MONTHLY FINANCIAL REPORT FN334/375/18(P1) Refer Attachment 1: 2016-17 Special Purpose Statement of Income and Expenditure and

Special Purpose Statement of Financial Position – November 2016

1 BASIS FOR CONFIDENTIALITY Not Applicable. 2 EXECUTIVE SUMMARY Not Applicable. 3 PURPOSE OF REPORT The Local Government Act 2009 and the Local Government Regulation 2012 require the Chief Executive Officer to present a financial report to Council on a monthly basis. The attached report is provided to Council in accordance with the above statutory requirements for November 2016. 4 PREVIOUS RESOLUTIONS Not Applicable. 5 DISCUSSION Monthly financial reporting to Council is specified under section 204 of the Local Government Regulation 2012. It requires the Chief Executive Officer to present a financial report to Council on a monthly basis, stating the progress that has been made in relation to the local government’s budget. To aid in understanding the budget to actual position a Special Purpose Statement of Income and Expenditure and Special Purpose Statement of Financial Position are provided in Attachment 1. The purpose of each statement is summarised below:

2016-17 Special Purpose Statement of Income and Expenditure - The Statement of Income and Expenditure measures Council’s performance over the year and includes all sources of income and all operating expenses. A favourable net result indicates Council is increasing its community equity, i.e. net accumulated financial worth. Combined Statements of Income and Expenditure for Gold Coast Water, Waste Management, Tourist Parks and Other Council Activities are also provided in Attachment 1.

2016-17 Special Purpose Statement of Financial Position - The Statement of Financial Position sets out Council’s net accumulated financial worth at a point in time. It shows the assets that Council holds as well as liabilities or claims against these assets.

These special purpose financial statements are prepared for Council in satisfaction of the statutory requirement noted above. They are extracted directly from the financial system after each month is closed, so the amounts shown in the report reflect unaudited account balances. On rare occasions the report may reflect an adjusted amount, where material errors or omissions in the financial system are known and quantifiable.

2016-17 Basis of Reporting & Trend Analysis

The budget figures presented in this report as at 30 November 2016 represent the 2016-17 September Budget Review position, after reprovisions.

729th Council Meeting 31 January 2017 5 Special Budget Committee Meeting 30 January 2017 Adopted Report ITEM 1 (CONTINUED) NOVEMBER 2016 MONTHLY FINANCIAL REPORT FN334/375/18(P1) As part of the monthly reporting process, Directorates are requested to identify significant budget trends. A trend is generally caused by an external influence beyond Council’s control (e.g. legislative, economic/financial markets, weather, etc.) and could potentially result in a variation to the level of service provided by Council. Budget variations are considered in the quarterly budget review process. The September Budget Review was presented to Council on 31 October 2016.

The budget trends identified below do not include matters included in the September Budget Review for consideration.

2016-17 Year to Date Progress and Comparative Analysis

Progress against capital and operating budgets can be expressed in a series of high level indicators as provided below. These indicators show that revenue and expenditure are generally within expectations at this point in the financial year.

When reviewing the budget to actual position on the statements it should be noted that Council’s budget is prepared on an annual basis, whereas actual figures are presented on a progressive monthly basis. Pro rata comparisons may not be appropriate because actual results may not occur evenly throughout the year, for example when they are influenced by seasonality or when works / programs are ahead of or behind schedule, or progress at a rate which is not uniform throughout the year. Such timing variances do not indicate a need for budget adjustment. Examples of variances which should be addressed through budget adjustments are:

o planning variances where the intended program / outputs have changed; o cost/efficiency variances, such as savings or over-expenditure, that will not be

absorbed within the budget area o price variances, where the price of inputs changed.

The graphs presented below attempt to take seasonality of budget expenditure into account by comparing actual expenditure and revenue for the year to date to a Previous Year Pattern (shown in the graphs as “Previous”).

o The Previous Year Pattern percentage shows the percentage of last year’s total expenditure that had been spent at the corresponding time last year based off the final Revised Budget.

2016-17 Statement of Income and Expenditure - Major Budget Trends Budget Trend$m

( ) = FavourableGeneralInfrastructure Charges Revenue - total contributions for 2015-16 was $71.1 million and contributions received YTD to the end of November is $28.1 million. Developer contributions do not impact the budget as the funds are placed in reserve for future works.

Gold Coast Water & WasteInfrastructure Charges Revenue - revenue received to November 2016 totals $25.7 million, which equates to almost 65% of the annual $40 million budget. It is proposed to increase this revenue budget by $5 million to $45 million at the December budget review in order for Gold Coast Water & Waste to recognise as part of monthly reporting.

($5,000,000)

Office of the Chief Executive Officer Interest on Investments - Cash balances were higher than expected at the beginning of the year along with higher interest rates resulting in additional returns on investment. An adjustment will be made in the December Budget Review.

TBC

Planning & EnvironmentDevelopment Charges Revenue - Development Revenues to the end of November 2016 total $15 million and equate to approximately 54% of the total annual budget. Approximately $1.3 million of this relates to annual invoicing for Backflow Prevention testing. The remainder largely reflects high workloads in the Plumbing & Drainage, Operational Works and Contributed Assets areas, which is the logical flow-on impact from the high Development Assessment fee revenues experienced last financial year. It is proposed to increase the annual budget by $2.0 million to a total of $29.8 million at the December budget review.

($2,000,000)

729th Council Meeting 31 January 2017 6 Special Budget Committee Meeting 30 January 2017 Adopted Report ITEM 1 (CONTINUED) NOVEMBER 2016 MONTHLY FINANCIAL REPORT FN334/375/18(P1)

o The Previous Year Pattern amount shows the actual reported amount at the corresponding time last year.

Previous Year Pattern for revenue is a similar calculation based on revenue received at the corresponding time last year.

OPERATING EXPENDITURE

The graph provides a comparison of year to date actual operating expenditure to budget (including reprovisions) for November 2016.

Council has spent $356.9 million from an operating expense budget of $941.7 million in 2016-17. This represents 37.9% expended at 41.7% of the year elapsed.

By comparison 39.0% ($335.8 million) of the previous year’s actual expenditure had been spent from the budget of $861.0 million at the end of November 2015.

CAPITAL EXPENDITURE

The capital expenditure graph shows a comparison of budget (plus commitments) to actual expenditure for capital works in 2016-17. At the end of November 2016 $106.1 million ($205.8 million inclusive of commitments) had been spent from a total capital budget of $407.4 million. This represents 26.0% (50.5% inclusive of commitments) of the total budget with 41.7% of the year elapsed. Commitments relate to both current year and reprovided projects from 2015-16.

By comparison 22.4% (37.1% inclusive of commitments) of the capital budget ($361.9 million) had been spent at the end of November 2015.

Major projects contributing to the increased expenditure pattern includes:

- Cultural Precinct - Gold Coast Water and Sewerage

related projects - Place-making project at Surf

Parade, Broadbeach.

Expense - Operating 2016 - 2017 Budget = $942M

37.9%

39.0%

- 200 400 600 800

Budget 16-17

Actual 16-17

Budget 15-16

Actual 15-16

Millions

Operating Expenditure - Budget v Actual (excl depreciation)

Expense - Capital 2016 - 2017 Budget = $407M

26.0% 50.5%

0 100 200 300 400

Budget

Actual +Commitments

Millions

2016-17 Capital Expenditure - Budget v Actual + Commitments


22.4% 37.1%

0 100 200 300 400

Budget

Actual +Commitments

Millions


729th Council Meeting 31 January 2017 7 Special Budget Committee Meeting 30 January 2017 Adopted Report ITEM 1 (CONTINUED) NOVEMBER 2016 MONTHLY FINANCIAL REPORT FN334/375/18(P1) OPERATING REVENUES

The graphs below present Council’s major sources of operating revenue. They show the actual year to date performance compared with total year budget and budget trend.

Fees and Charges

Fees and charges (excluding Private Works and Water and Waste Water Fees) were $44.7 million, which is 46.0% of the budget of $97.1 million as at the end of November 2016 (41.7% of year elapsed). Building and Development Fees along with Licences and Permits are exceeding budgeted expectations and will be monitored in future reviews. By comparison, 44.9% ($44.1 million) of last year’s budget ($98.3 million) for fees and charges revenue had been achieved by the end of November 2015.

Rates and Utility Charges

The amount of rates and utility charges brought to account as at the end of November 2016 was $463.1 million, which is 43.4% (44.7% inclusive of $14 million prepaid rates adjustment) of the total budget of $1,067.7 million. This amount comprises Gold Coast Water rates, which are recognised on a progressive monthly basis, and other rates, which are recognised when billed. By comparison, 45.4% ($466.2 million) of last year’s total rates and utility charges revenue budget ($1,026.9 million) had been achieved by the end of November 2015.

Interest Income

Interest income at the end of November 2016 was $12.8 million, which is 49.0% of the budget of $26.1 million. By comparison, 49.2% ($11.4 million) of last year’s total interest revenue budget ($23.1 million) had been received by the end of November 2015. The Interest Income budget is above expectations due to higher cash balances and will be reviewed in the December Budget Review based on higher than anticipated opening cash balances and interest rates.

Revenue - Rates and Utility Charges 2016 - 2017 Budget = $1068M

43.4%

45.4%

0 200 400 600 800 1,000

Budget 16-17

Actual 16-17

Budget 15-16

Actual 15-16

Millions

Rate Revenue - Budget v Actual

Revenue - Interest Income 2016 - 2017 Budget = $26M

49.0%

49.2%

0 10 20

Budget 16-17

Actual 16-17

Budget 15-16

Actual 15-16

Millions

Interest Income - Budget v Actual

Revenue - Fees & Charges 2016 - 2017 Budget = $97M

46.0%

44.9%

0 20 40 60 80

Budget 16-17

Actual 16-17

Budget 15-16

Actual 15-16

Millions

Fees & Charges Income - Budget v Actual

729th Council Meeting 31 January 2017 8 Special Budget Committee Meeting 30 January 2017 Adopted Report ITEM 1 (CONTINUED) NOVEMBER 2016 MONTHLY FINANCIAL REPORT FN334/375/18(P1) 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN Not Applicable. 7 GOLD COAST 2018 COMMONWEALTH GAMES™ IMPACT Not Applicable. 8 FUNDING AND RESOURCING REQUIREMENTS Not Applicable. 9 RISK MANAGEMENT Not Applicable. 10 STATUTORY MATTERS The November 2016 Monthly Financial Report is presented to Council in accordance with the Local Government Act 2009 and the Local Government Regulation 2012. 11 COUNCIL POLICIES Not Applicable. 12 DELEGATIONS Not Applicable. 13 COORDINATION & CONSULTATION The November 2016 Monthly Financial Report has been developed in consultation with Directorate staff where applicable.

Name and/or Title of the Stakeholder Consulted

Directorate Is the Stakeholder Satisfied With Content of Report and Recommendations (Yes/No) (comment as appropriate)

John Blair, Manager Corporate Finance OCEO Yes

Marilyn Hildebrandt, Executive Coordinator Directorate Finances

OCEO Yes

Julie Brooks, Executive Coordinator Directorate Finances

OCEO Yes

Alex Rummery, Executive Coordinator Directorate Finances

OCEO Yes

729th Council Meeting 31 January 2017 9 Special Budget Committee Meeting 30 January 2017 Adopted Report ITEM 1 (CONTINUED) NOVEMBER 2016 MONTHLY FINANCIAL REPORT FN334/375/18(P1) 14 STAKEHOLDER IMPACTS Not Applicable. 15 TIMING Not Applicable. 16 CONCLUSION The presentation of the attached special purpose (unaudited) reports, 2016-17 Statement of Income and Expenditure and Statement of Financial Position, satisfies legislative financial reporting requirements for November 2016. The high level indicators show that revenue and expenditure are generally within expectations at this point in the financial year. 17 RECOMMENDATION It is recommended that Council resolves as follows: That Council note the Special Purpose 2016-17 Statement of Income and Expenditure and Statement of Financial Position as presented for November 2016. Author: Authorised by:

John Jackson Joe McCabe Corporate Management Accountant Chief Operating Officer 21 December 2016 COMMITTEE RECOMMENDATION B17.0130.001 moved Cr Owen-Jones seconded Cr PJ Young That Council note the Special Purpose 2016-17 Statement of Income and Expenditure and Statement of Financial Position as presented for November 2016.

CARRIED UNANIMOUSLY


ITEM 1 (CONTINUED) NOVEMBER 2016 MONTHLY FINANCIAL REPORT FN334/375/18(P1)

Attachment 1

REVISED BUDGET

1

ACTUALREVISED BUDGET

1


1


1


1

ACTUAL

REVENUERATES & UTILITY CHARGES - - (75,062) (31,804) (467,237) (194,190) (525,366) (237,135) (1,067,664) (463,128) 5

RATES DISCOUNTS & REMISSIONS - - 0 (0) 0 0 47,169 23,134 47,169 23,133RATE LEVY CHARGES FOR THIRD PARTIES - - - - - - 0 0 0 0FEES AND CHARGES (17,191) (7,216) (9,494) (4,350) (4,777) (1,591) (70,583) (33,156) (102,045) (46,312)INTEREST REVENUE - - (137) (82) (9,380) (3,927) (16,577) (8,768) (26,094) (12,778) 6

GAIN/LOSS ON SALE OF ASSETS 0 0 0 8 5,000 155 1,194 16,426 6,194 16,589CONTRIBUTION & DONATIONS REVENUE - - (845) (863) 4 (55,159) (36,712) 4 (125,045) (45,663) 4 (181,049) (83,237) 4

GRANTS & SUBSIDIES REVENUE - - 0 (30) 0 0 (60,993) (20,849) (60,993) (20,879)OTHER REVENUE (580) (231) 2 (43) (3) 0 (50) (20,010) (8,563) (20,633) (8,847)

TOTAL REVENUE (17,771) (7,447) (85,581) (37,124) (531,552) (236,314) (770,212) (314,573) (1,405,116) (595,458)

EXPENSESEMPLOYEE COSTS 647 286 8,967 3,395 45,008 18,505 296,950 120,164 351,573 142,351MATERIALS AND SERVICES 12,614 4,954 92,099 30,929 391,582 159,956 304,441 76,147 800,735 271,986DEPRECIATION & AMORTISATION 1,381 727 7,906 3,726 92,000 38,814 168,109 56,649 269,396 99,916FINANCE COSTS 0 7 3 0 (0) 0 0 46,286 12,425 46,286 12,432 7

OTHER EXPENSES 3,468 1,473 (9,095) 443 32,275 358 168,045 38,076 194,694 40,351CAPITALISED EXPENSES (2,445) (443) (14,224) (923) (76,233) (24,004) (312,878) (62,300) (405,780) (87,670)

TOTAL EXPENSES 15,665 7,005 85,653 37,570 484,632 193,630 670,954 241,161 1,256,904 479,366

NET RESULT (2,106) (442) 72 447 (46,920) (42,685) (99,258) (73,412) (148,212) (116,092)

1

2

3

4

5

6

7

This amount comprises Gold Coast Water rates, which are recognised on a progressive monthly basis, and other rates, which are recognised when billed.

Total Revised Budget figures are based on latest adopted Budget Review (at date of Monthly Financial Report).

WATER OTHER ACTIVITIES CITY OF GOLD COAST

Finance Costs are processed once quarterly statements are received from Queensland Treasury Corporation.

SPECIAL PURPOSE FINANCIAL STATEMENT (UNAUDITED)COMBINING STATEMENT OF INCOME AND EXPENDITURE FOR CITY OF GOLD COAST

FOR THE PERIOD ENDED 30 NOVEMBER 2016

GOLD COAST GOLD COAST

(in thousands of dollars)

GOLD COAST

Interest revenue comprises earnings based off a higher than estimated cash balances.

Finance Costs includes credit card surcharges.

Other Revenue is mostly Canteen Revenue and "Revenue Default". The latter is the account to which revenue is posted before being allocated to the appropriate account by journal.It usually contains receipts for the last several days of the month.

Contributions and Donations Revenue comprises capital revenues from cash contributions and contributed assets.

TOURIST PARKS

General explanations of the above line items can be found in Appendix 1

WASTE MANAGEMENT



REVISED BUDGET

1 ACTUAL

ASSETSCURRENT ASSETS

CASH ASSETS 619,365 919,967 2

CURRENT RECEIVABLES 186,277 129,583 3

INVENTORIES 2,031 1,923PREPAYMENTS 661 189CLEARING ACCOUNTS 0 (35) 4

808,334 1,051,627

NON CURRENT ASSETSOTHER FINANCIAL ASSETS 1,150 1,150 5

PROPERTY, PLANT AND EQUIPMENT 13,528,807 12,957,431ASSETS UNDER CONSTRUCTION 0 333,193 6

13,529,957 13,291,774

TOTAL ASSETS 14,338,291 14,343,401

LIABILITIESCURRENT LIABILITIES

CURRENT PAYABLES (86,774) (64,730)UNEARNED REVENUE (3,645) (29,705) 7

CURRENT EMPLOYEE BENEFITS (25,415) (22,851)CURRENT BORROWINGS (71,696) (71,696)CLEARING ACCOUNTS 0 (70) 4

(187,530) (189,052)

NON CURRENT LIABILITIESNON CURRENT EMPLOYEE BENEFITS (52,434) (55,787)NON CURRENT BORROWINGS (628,202) (647,077)

(680,636) (702,865)

TOTAL LIABILITIES (868,166) (891,916)NET COMMUNITY ASSETS 13,470,125 13,451,485

COMMUNITY EQUITYRETAINED CAPITAL 8,260,014 8,224,175RESERVES 5,210,110 5,227,310 8

TOTAL COMMUNITY EQUITY 13,470,125 13,451,485

1

2

3

4

5

6

7

8

Other Financial Assets are Council's investments in Gold Coast City Council Insurance Co Ltd and SEQ Regional Recreational Facilities Pty Ltd.The balance of Assets Under Construction is the accumulated expenditure on capital assets that have not yet been completed and added to Property, Plant and Equipment. From a budget perspective it is assumed that by year end all capital works have been completed and moved to Property, Plant and Equipment.

Unearned Revenue includes water rates which have been billed but are treated as unearned and recognised as revenue progressively throughout the year. They will be reduced by year end.Reserves includes Asset Revaluation Surplus and Cash Reserves.

General explanations of line items can be found in Appendix 1.

Current Receivables includes balances of outstanding invoices and accruals for water rates. It is usually highest after rate notices are issued (July, October, January and April).Clearing Accounts comprise a number of accounts used to hold balances which are cleared periodically throughout the year, including credit cards, payroll related items and debtor refunds.


SPECIAL PURPOSE FINANCIAL STATEMENT (UNAUDITED)STATEMENT OF FINANCIAL POSITION FOR CITY OF GOLD COAST AS AT 30 NOVEMBER 2016

Total Revised Budget figures are based on latest adopted Budget Review (at date of Monthly Financial Report).Cash Assets include investments. The balance is usually highest after the close of the discount period for Rates (August and February) and Water (July, October, January and April). The cash balance comprises: (i) Infrastructure Charges Reserve ($243.4m), (ii) Investment Fund Reserve ($98.5m), (iii) Gold Coast Water & Waste reserves ($180.4m), (iv) Other reserves (including Commonwealth Games, Cultural Precinct) ($142.2m) and (iv) Other cash items ($255.4m).



APPENDIX 1 – Explanation of Financial Statement Items This appendix is a general explanation of Council’s revenues, costs, assets and liabilities to aid in understanding the budget to actual comparison in the monthly financial report.

STATEMENT OF INCOME AND EXPENDITURE BY SIGNIFICANT ACTIVITIES

REVENUE FROM ORDINARY ACTIVITIES


Rate revenue for Council will mainly be recorded in July and January upon the issue of rate notices. Rate Revenue for Gold Coast Water is accounted for on an accrual basis throughout the year.

Rates Discount and Remissions

Rate discount is recorded as an expense at the time of payment and will mainly increase in July / August and January / February as rates are paid. However, remission is provided at the time of rate issue and will mainly increase in July and January.

Fees and Charges The pattern of revenue for fees and charges reflects a mixture of billing cycles and seasonal variations. For example, licensing and other charges are mainly billed in the first quarter of the financial year, whereas development assessment receipts may follow building and economic trends.

Gain/Loss on Sale A gain or loss on sale arises when Council assets are disposed of or sold at a value that varies from their book value.

Interest Revenue Interest earned varies according to the cash balances available for investment throughout the year.

Contributions and Donations Revenue

This line includes capital revenues from cash contributions and contributed assets. Contributed assets generally account for more than half of this budget which are a ‘book entry’ only and are brought to account through year-end processes.

Grants and Subsidies Revenue

Subsidies are mainly received for specific capital projects after stages of completion are reached.

Other Revenue Other revenue comprises miscellaneous relatively small amounts of revenue that don’t fit into the major categories. It includes Reimbursements and Recoveries, and Rental and Lease Revenue.

EXPENSES FROM ORDINARY ACTIVITIES

Employee Costs The total expenditure on labour, including remuneration and benefits, as well as other employee-related costs such as superannuation, payroll tax and workers compensation.

Materials and Services

Where totals are shown for individual business units, the expenditure on materials and services includes internal transactions.

Depreciation and Amortisation

Non-cash expense that estimates the use and ‘wear and tear’ of non-current assets such as plant, equipment and infrastructure.

Finance Costs Interest on loans, and bank charges.

Other Expenses Other expenses comprises miscellaneous expenses that don’t fit into the major categories. It includes contributions and donations, write offs, insurance premiums and external audit fees.



Capitalised Expenses

This line shows how much of the employee costs and materials and services are used in construction / purchase or major renewal of assets. The budget reflects the total expenditure identified in the Four Year Capital Works Program.

Net Result for Period

This line represents the budgeted increase in community equity to be retained at year end. This is used to fund new capital works and for loan redemption. Transfers to and from capital reserves are made as appropriate.

STATEMENT OF FINANCIAL POSITION

Current assets The cash and cash equivalents that are currently held. The budget shows the budgeted closing balance at the end of the financial year. The actual cash balance will vary significantly throughout the year as rate receipts, loans and major payments are processed. Cash investment is managed by Council’s Treasury Section.

Non Current Assets The budgeted value of property, plant and equipment and infrastructure assets, at year end, including land, roads, water and sewerage infrastructure after depreciation, renewals, new capital works, contributed assets and revaluations are accounted for.

Current Liabilities The present obligations, arising in the past, that Council has to make payments for within the next financial year. The budget shows the expected balance of these liabilities at the end of the financial year. This includes accounts payable and provisions for employee entitlements to annual and long service leave. It also includes the expected commitment to pay loan redemption in the next financial year.

Non-Current Liabilities

The expected balance, at year end, of provisions for employee entitlements and debt that is not required to be paid within the next financial year.

Community Equity Retained equity includes City Capital and any Surplus / Deficit. Reserves include cash-backed reserves representing infrastructure charges and asset revaluation reserves which record the valuation adjustments to Council’s existing non-current assets.


ITEM 2 OFFICE OF THE CHIEF EXECUTIVE OFFICER DECEMBER 2016 MONTHLY FINANCIAL REPORT FN334/375/18(P1) Refer Attachment 1: 2016-17 Special Purpose Statement of Income and Expenditure and

Special Purpose Statement of Financial Position – December 2016

1 BASIS FOR CONFIDENTIALITY

Not Applicable. 2 EXECUTIVE SUMMARY

Not Applicable. 3 PURPOSE OF REPORT The Local Government Act 2009 and the Local Government Regulation 2012 require the Chief Executive Officer to present a financial report to Council on a monthly basis. The attached report is provided to Council in accordance with the above statutory requirements for December 2016.

4 PREVIOUS RESOLUTIONS

Not Applicable.

5 DISCUSSION Monthly financial reporting to Council is specified under section 204 of the Local Government Regulation 2012. It requires the Chief Executive Officer to present a financial report to Council on a monthly basis, stating the progress that has been made in relation to the local government’s budget. To aid in understanding the budget to actual position a Special Purpose Statement of Income and Expenditure and Special Purpose Statement of Financial Position are provided in Attachment 1. The purpose of each statement is summarised below:

2016-17 Special Purpose Statement of Income and Expenditure - The Statement of Income and Expenditure measures Council’s performance over the year and includes all sources of income and all operating expenses. A favourable net result indicates Council is increasing its community equity, i.e. net accumulated financial worth. Combined Statements of Income and Expenditure for Gold Coast Water, Waste Management, Tourist Parks and Other Council Activities are also provided in Attachment 1.

2016-17 Special Purpose Statement of Financial Position - The Statement of Financial Position sets out Council’s net accumulated financial worth at a point in time. It shows the assets that Council holds as well as liabilities or claims against these assets.

These special purpose financial statements are prepared for Council in satisfaction of the statutory requirement noted above. They are extracted directly from the financial system after each month is closed, so the amounts shown in the report reflect unaudited account balances. On rare occasions the report may reflect an adjusted amount, where material errors or omissions in the financial system are known and quantifiable.

2016-17 Basis of Reporting & Trend Analysis

The budget figures presented in this report as at 31 December 2016 represent the 2016-17 September Budget Review position, after reprovisions.

As part of the monthly reporting process, Directorates are requested to identify significant budget trends. A trend is generally caused by an external influence beyond Council’s control (e.g. legislative, economic/financial markets, weather, etc.) and could potentially result in a variation to the level of service provided by Council.


ITEM 2 (CONTINUED) DECEMBER 2016 MONTHLY FINANCIAL REPORT FN334/375/18(P1) Budget variations are considered in the quarterly budget review process. The September Budget Review was presented to Council on 31 October 2016. The following trends were included in the December Budget Review as budget variations.

2016-17 Year to Date Progress and Comparative Analysis

Progress against capital and operating budgets can be expressed in a series of high level indicators as provided below. These indicators show that revenue and expenditure are generally within expectations at this point in the financial year.

When reviewing the budget to actual position on the statements it should be noted that Council’s budget is prepared on an annual basis, whereas actual figures are presented on a progressive monthly basis. Pro rata comparisons may not be appropriate because actual results may not occur evenly throughout the year, for example when they are influenced by seasonality or when works / programs are ahead of or behind schedule, or progress at a rate which is not uniform throughout the year. Such timing variances do not indicate a need for budget adjustment. Examples of variances which should be addressed through budget adjustments are:

o planning variances where the intended program / outputs have changed; o cost/efficiency variances, such as savings or over-expenditure, that will not be

absorbed within the budget area o price variances, where the price of inputs changed.

The graphs presented below attempt to take seasonality of budget expenditure into account by comparing actual expenditure and revenue for the year to date to a Previous Year Pattern (shown in the graphs as “Previous”).

2016-17 Statement of Income and Expenditure - Major Budget Trends Budget Trend$m

( ) = Favourable

GeneralInfrastructure Charges Revenue - total contributions for 2015-16 was $71.1 million and contributions received YTD to the end of December is $34.3 million against a budget of $14.2 million. Developer contributions do not impact the budget as the funds are placed in reserve for future works.Community ServicesOther Revenue - due to the Carrara Indoor Stadium remaining open until March 2017, which was originally planned to close for redevelopment from November 2016, there is a forecast increase in both Stadium and Canteen revenue to reflect the additional activity.

($265,199)

Gold Coast Water & WasteInfrastructure Charges Revenue - Receipts for the first six months total $31.6 million which equates to 79% of the $40 million annual budget. This is almost $8 million less than the same period last financial year, but $10 million higher than the average of the past four years. A $5 million budget increase is proposed in the December budget review, bringing total annual budget to $45 million, in order for Gold Coast Water & Waste to recognise as part of monthly reporting. . This revenue stream is totally dependant upon activity in the development sector and is not within the control of GCW. Close monitoring will continue and should high levels continue, a further increase is likely to be identified in the final budget review of the year.

($5,000,000)

Planning & EnvironmentDevelopment Charges Revenue - Development Revenues to the end of December 2016 total $18.3 million and equate to approximately 66% of the total annual budget. Approximately $1.3 million of this relates to annual invoicing for Backflow Prevention testing. The remainder largely reflects high workloads in the Plumbing & Drainage, Operational Works and Contributed Assets areas, which is the logical flow-on impact from the high Development Assessment fee revenues experienced last financial year. Planning Assessment (MCU/ROL) is also quite high, predominantly the result of a high level of applications for assessment under a superseded planning scheme, the timeframe for which expires at the end of January 2017. An increase in the revenue budget of $2 million is being declared at the December 2016 Budget Review, which will bring the total revenue budget for the year to $29.8 million. Receipts for the month of December 2016 were $3.2 million, which is significantly higher than anticipated. This situation will continue to be closely monitored and consideration will be given to further increasing the annual budget at the final budget review for the year.

($2,000,000)

Office of the Chief Executive Officer Interest on Investments - Cash balances were higher than expected at the beginning of the year along with higher interest rates resulting in additional returns on investment. The average cash balance to date has been $925 million with the average earnings rate at 2.7%. An adjustment will be made in the December Budget Review.

($2,163,901)


ITEM 2 (CONTINUED) DECEMBER 2016 MONTHLY FINANCIAL REPORT FN334/375/18(P1)

o The Previous Year Pattern percentage shows the percentage of last year’s total expenditure that had been spent at the corresponding time last year based off the final Revised Budget.

o The Previous Year Pattern amount shows the actual reported amount at the corresponding time last year.

Previous Year Pattern for revenue is a similar calculation based on revenue received at the corresponding time last year. OPERATING EXPENDITURE

The graph provides a comparison of year to date actual operating expenditure to budget (including reprovisions) for December 2016.

Council has spent $431.9 million from an operating expense budget of $939.7 million in 2016-17. This represents 46.0% expended at 50.0% of the year elapsed.

By comparison 47.0% ($404.7 million) of the previous year’s actual expenditure had been spent from the budget of $861.0 million at the end of December 2015.

CAPITAL EXPENDITURE

The capital expenditure graph shows a comparison of budget (plus commitments) to actual expenditure for capital works in 2016-17. At the end of December 2016 $128.7 million ($225.5 million inclusive of commitments) had been spent from a total capital budget of $409.4 million. This represents 31.4% (55.1% inclusive of commitments) of the total budget with 50.0% of the year elapsed. Commitments relate to both current year and reprovided projects from 2015-16.

By comparison 28.8% (44.7% inclusive of commitments) of the capital budget ($361.9 million) had been spent at the end of December 2015.

Major projects contributing to the increased expenditure pattern includes:

- Cultural Precinct - Gold Coast Water and Sewerage

related projects - Place-making project at Surf

Parade, Broadbeach.

Expense - Operating 2016 - 2017 Budget = $940M

46.0%

47.0%

- 200 400 600 800

Budget 16-17

Actual 16-17

Budget 15-16

Actual 15-16

Millions

Operating Expenditure - Budget v Actual (excl depreciation)


31.4% 55.1%

0 100 200 300 400

Budget

Actual +Commitments

Millions



28.8% 44.7%

0 100 200 300 400

Budget

Actual +Commitments

Millions



ITEM 2 (CONTINUED) DECEMBER 2016 MONTHLY FINANCIAL REPORT FN334/375/18(P1) OPERATING REVENUES

The graphs below present Council’s major sources of operating revenue. They show the actual year to date performance compared with total year budget and budget trend.

Fees and Charges

Fees and charges (excluding Private Works and Water and Waste Water Fees) were $54.1 million, which is 55.7% of the budget of $97.1 million as at the end of December 2016 (50.0% of year elapsed). Building and Development Fees along with Licences and Permits are exceeding budgeted expectations and will be monitored in future reviews. By comparison, 54.9% ($53.9 million) of last year’s budget ($98.3 million) for fees and charges revenue had been achieved by the end of December 2015.


The amount of rates and utility charges brought to account as at the end of December 2016 was $511.2 million, which is 47.9% (49.2% inclusive of $14 million prepaid rates adjustment) of the total budget of $1,067.7 million. This amount comprises Gold Coast Water rates, which are recognised on a progressive monthly basis, and other rates, which are recognised when billed. By comparison, 49.2% ($505.3 million) of last year’s total rates and utility charges revenue budget ($1,026.9 million) had been achieved by the end of December 2015.

Interest Income

Interest income at the end of December 2016 was $15.2 million, which is 58.3% of the budget of $26.1 million. By comparison, 58.7% ($13.6 million) of last year’s total interest revenue budget ($23.1 million) had been received by the end of December 2015. The Interest Income budget is above expectations due to higher cash balances and will be reviewed in the December Budget Review based on higher than anticipated opening cash balances and interest rates.

Revenue - Fees & Charges 2016 - 2017 Budget = $97M

55.7%

54.9%

0 20 40 60 80

Budget 16-17

Actual 16-17

Budget 15-16

Actual 15-16

Millions

Fees & Charges Income - Budget v Actual

Revenue - Rates and Utility Charges 2016 - 2017 Budget = $1068M

47.9%

49.2%

0 200 400 600 800 1,000

Budget 16-17

Actual 16-17

Budget 15-16

Actual 15-16

Millions

Rate Revenue - Budget v Actual

Revenue - Interest Income 2016 - 2017 Budget = $26M

58.3%

58.7%

0 10 20

Budget 16-17

Actual 16-17

Budget 15-16

Actual 15-16

Millions

Interest Income - Budget v Actual


ITEM 2 (CONTINUED) DECEMBER 2016 MONTHLY FINANCIAL REPORT FN334/375/18(P1) 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN Not Applicable. 7 GOLD COAST 2018 COMMONWEALTH GAMES™ IMPACT Not Applicable. 8 FUNDING AND RESOURCING REQUIREMENTS Not Applicable. 9 RISK MANAGEMENT Not Applicable. 10 STATUTORY MATTERS The December 2016 Monthly Financial Report is presented to Council in accordance with the Local Government Act 2009 and the Local Government Regulation 2012. 11 COUNCIL POLICIES Not Applicable. 12 DELEGATIONS Not Applicable. 13 COORDINATION & CONSULTATION The December 2016 Monthly Financial Report has been developed in consultation with Directorate staff where applicable.


Directorate Is the Stakeholder Satisfied With Content of Report and Recommendations (Yes/No) (comment as appropriate)

John Blair, Manager Corporate Finance OCEO Yes

Marilyn Hildebrandt, Executive Coordinator Directorate Finances

OCEO Yes

Julie Brooks, Executive Coordinator Directorate Finances

OCEO Yes

Alex Rummery, Executive Coordinator Directorate Finances

OCEO Yes


ITEM 2 (CONTINUED) DECEMBER 2016 MONTHLY FINANCIAL REPORT FN334/375/18(P1) 14 STAKEHOLDER IMPACTS Not Applicable. 15 TIMING Not Applicable. 16 CONCLUSION The presentation of the attached special purpose (unaudited) reports, 2016-17 Statement of Income and Expenditure and Statement of Financial Position, satisfies legislative financial reporting requirements for December 2016. The high level indicators show that revenue and expenditure are generally within expectations at this point in the financial year. 17 RECOMMENDATION It is recommended that Council resolves as follows: That Council note the Special Purpose 2016-17 Statement of Income and Expenditure and Statement of Financial Position as presented for December 2016. Author: Authorised by:

John Jackson Joe McCabe Corporate Management Accountant Chief Operating Officer 16 January 2017 COMMITTEE RECOMMENDATION B17.0130.002 moved Cr PJ Young seconded Cr Tozer That Council note the Special Purpose 2016-17 Statement of Income and Expenditure and Statement of Financial Position as presented for December 2016.

CARRIED UNANIMOUSLY



Attachment 1

REVISED BUDGET

1


1


1


1


1

ACTUAL

REVENUERATES & UTILITY CHARGES - - (75,062) (38,107) (467,237) (237,089) (525,366) (235,987) (1,067,664) (511,182) 5

RATES DISCOUNTS & REMISSIONS - - 0 (0) 0 0 47,169 23,049 47,169 23,049RATE LEVY CHARGES FOR THIRD PARTIES - - - - - - 0 27 0 27FEES AND CHARGES (17,191) (8,939) (9,494) (5,241) (4,777) (2,078) (70,583) (39,955) (102,045) (56,213)INTEREST REVENUE - - (137) (94) (9,380) (4,726) (16,577) (10,400) (26,094) (15,219) 6

GAIN/LOSS ON SALE OF ASSETS 0 28 0 25 5,000 155 1,194 3,259 6,194 3,468CONTRIBUTION & DONATIONS REVENUE - - (845) (863) 4 (55,159) (49,409) 4 (125,045) (81,088) 4 (181,049) (131,361) 4

GRANTS & SUBSIDIES REVENUE - - 0 (30) 0 0 (60,993) (21,670) (60,993) (21,700)OTHER REVENUE (580) (409) 2 (43) (3) 0 (50) (20,010) (9,996) (20,633) (10,458)

TOTAL REVENUE (17,771) (9,319) (85,581) (44,312) (531,552) (293,197) (770,212) (372,760) (1,405,116) (719,589)

EXPENSESEMPLOYEE COSTS 647 340 8,967 4,008 45,008 22,065 296,950 143,287 351,573 169,699MATERIALS AND SERVICES 12,614 5,479 92,099 36,403 391,582 196,623 304,441 93,509 800,735 332,014DEPRECIATION & AMORTISATION 1,381 864 7,906 4,454 92,000 46,632 168,109 68,098 269,396 120,047FINANCE COSTS 0 7 3 0 (0) 0 0 46,286 23,902 46,286 23,909 7

OTHER EXPENSES 3,468 1,793 (9,095) 473 32,275 397 168,045 46,346 194,694 49,010CAPITALISED EXPENSES (2,445) (509) (14,224) (1,210) (76,233) (28,353) (312,878) (77,520) (405,780) (107,592)

TOTAL EXPENSES 15,665 7,975 85,653 44,128 484,632 237,364 670,954 297,621 1,256,904 587,087

NET RESULT (2,106) (1,345) 72 (185) (46,920) (55,833) (99,258) (75,139) (148,212) (132,501)

1

2

3

4

5

6

7

This amount comprises Gold Coast Water rates, which are recognised on a progressive monthly basis, and other rates, which are recognised when billed.

Total Revised Budget figures are based on latest adopted Budget Review (at date of Monthly Financial Report).

WATER OTHER ACTIVITIES CITY OF GOLD COAST

Finance Costs are processed once quarterly statements are received from Queensland Treasury Corporation.

SPECIAL PURPOSE FINANCIAL STATEMENT (UNAUDITED)COMBINING STATEMENT OF INCOME AND EXPENDITURE FOR CITY OF GOLD COAST

FOR THE PERIOD ENDED 31 DECEMBER 2016

GOLD COAST GOLD COAST


GOLD COAST

Interest revenue comprises earnings based off a higher than estimated cash balances.

Finance Costs includes credit card surcharges.

Other Revenue is mostly Canteen Revenue and "Revenue Default". The latter is the account to which revenue is posted before being allocated to the appropriate account by journal.It usually contains receipts for the last several days of the month.

Contributions and Donations Revenue comprises capital revenues from cash contributions and contributed assets.

TOURIST PARKS

General explanations of the above line items can be found in Appendix 1

WASTE MANAGEMENT



REVISED BUDGET

1 ACTUAL

ASSETSCURRENT ASSETS

CASH ASSETS 619,365 840,736 2

CURRENT RECEIVABLES 186,277 136,962 3

INVENTORIES 2,031 1,875PREPAYMENTS 661 94CLEARING ACCOUNTS 0 (66) 4

808,334 979,602

NON CURRENT ASSETSOTHER FINANCIAL ASSETS 1,150 1,150 5

PROPERTY, PLANT AND EQUIPMENT 13,528,807 12,975,746ASSETS UNDER CONSTRUCTION 0 348,507 6

13,529,957 13,325,403

TOTAL ASSETS 14,338,291 14,305,005

LIABILITIESCURRENT LIABILITIES

CURRENT PAYABLES (86,774) (69,245)UNEARNED REVENUE (3,645) (2,294) 7

CURRENT EMPLOYEE BENEFITS (25,415) (21,999)CURRENT BORROWINGS (71,696) (71,696)CLEARING ACCOUNTS 0 (25) 4

(187,530) (165,260)

NON CURRENT LIABILITIESNON CURRENT EMPLOYEE BENEFITS (52,434) (56,458)NON CURRENT BORROWINGS (628,202) (629,792)

(680,636) (686,249)

TOTAL LIABILITIES (868,166) (851,510)NET COMMUNITY ASSETS 13,470,125 13,453,495

COMMUNITY EQUITYRETAINED CAPITAL 8,260,014 8,214,117RESERVES 5,210,110 5,239,378 8

TOTAL COMMUNITY EQUITY 13,470,125 13,453,495

1

2

3

4

5

6

7

8


SPECIAL PURPOSE FINANCIAL STATEMENT (UNAUDITED)STATEMENT OF FINANCIAL POSITION FOR CITY OF GOLD COAST AS AT 31 DECEMBER 2016

Total Revised Budget figures are based on latest adopted Budget Review (at date of Monthly Financial Report).Cash Assets include investments. The balance is usually highest after the close of the discount period for Rates (August and February) and Water (July, October, January and April). The cash balance comprises: (i) Infrastructure Charges Reserve ($254.7m), (ii) Investment Fund Reserve ($98.5m), (iii) Gold Coast Water & Waste reserves ($180.4m), (iv) Other reserves (including Commonwealth Games, Cultural Precinct) ($130.9m) and (iv) Other cash items ($176.2m).

Other Financial Assets are Council's investments in Gold Coast City Council Insurance Co Ltd and SEQ Regional Recreational Facilities Pty Ltd.The balance of Assets Under Construction is the accumulated expenditure on capital assets that have not yet been completed and added to Property, Plant and Equipment. From a budget perspective it is assumed that by year end all capital works have been completed and moved to Property, Plant and Equipment.

Unearned Revenue includes water rates which have been billed but are treated as unearned and recognised as revenue progressively throughout the year. They will be reduced by year end.Reserves includes Asset Revaluation Surplus and Cash Reserves.

General explanations of line items can be found in Appendix 1.

Current Receivables includes balances of outstanding invoices and accruals for water rates. It is usually highest after rate notices are issued (July, October, January and April).Clearing Accounts comprise a number of accounts used to hold balances which are cleared periodically throughout the year, including credit cards, payroll related items and debtor refunds.



APPENDIX 1 – Explanation of Financial Statement Items This appendix is a general explanation of Council’s revenues, costs, assets and liabilities to aid in understanding the budget to actual comparison in the monthly financial report.

STATEMENT OF INCOME AND EXPENDITURE BY SIGNIFICANT ACTIVITIES

REVENUE FROM ORDINARY ACTIVITIES


Rate revenue for Council will mainly be recorded in July and January upon the issue of rate notices. Rate Revenue for Gold Coast Water is accounted for on an accrual basis throughout the year.

Rates Discount and Remissions

Rate discount is recorded as an expense at the time of payment and will mainly increase in July / August and January / February as rates are paid. However, remission is provided at the time of rate issue and will mainly increase in July and January.

Fees and Charges The pattern of revenue for fees and charges reflects a mixture of billing cycles and seasonal variations. For example, licensing and other charges are mainly billed in the first quarter of the financial year, whereas development assessment receipts may follow building and economic trends.

Gain/Loss on Sale A gain or loss on sale arises when Council assets are disposed of or sold at a value that varies from their book value.

Interest Revenue Interest earned varies according to the cash balances available for investment throughout the year.

Contributions and Donations Revenue

This line includes capital revenues from cash contributions and contributed assets. Contributed assets generally account for more than half of this budget which are a ‘book entry’ only and are brought to account through year-end processes.

Grants and Subsidies Revenue

Subsidies are mainly received for specific capital projects after stages of completion are reached.

Other Revenue Other revenue comprises miscellaneous relatively small amounts of revenue that don’t fit into the major categories. It includes Reimbursements and Recoveries, and Rental and Lease Revenue.

EXPENSES FROM ORDINARY ACTIVITIES

Employee Costs The total expenditure on labour, including remuneration and benefits, as well as other employee-related costs such as superannuation, payroll tax and workers compensation.

Materials and Services

Where totals are shown for individual business units, the expenditure on materials and services includes internal transactions.

Depreciation and Amortisation

Non-cash expense that estimates the use and ‘wear and tear’ of non-current assets such as plant, equipment and infrastructure.

Finance Costs Interest on loans, and bank charges.

Other Expenses Other expenses comprises miscellaneous expenses that don’t fit into the major categories. It includes contributions and donations, write offs, insurance premiums and external audit fees.



Capitalised Expenses

This line shows how much of the employee costs and materials and services are used in construction / purchase or major renewal of assets. The budget reflects the total expenditure identified in the Four Year Capital Works Program.

Net Result for Period

This line represents the budgeted increase in community equity to be retained at year end. This is used to fund new capital works and for loan redemption. Transfers to and from capital reserves are made as appropriate.

STATEMENT OF FINANCIAL POSITION

Current assets The cash and cash equivalents that are currently held. The budget shows the budgeted closing balance at the end of the financial year. The actual cash balance will vary significantly throughout the year as rate receipts, loans and major payments are processed. Cash investment is managed by Council’s Treasury Section.

Non Current Assets The budgeted value of property, plant and equipment and infrastructure assets, at year end, including land, roads, water and sewerage infrastructure after depreciation, renewals, new capital works, contributed assets and revaluations are accounted for.

Current Liabilities The present obligations, arising in the past, that Council has to make payments for within the next financial year. The budget shows the expected balance of these liabilities at the end of the financial year. This includes accounts payable and provisions for employee entitlements to annual and long service leave. It also includes the expected commitment to pay loan redemption in the next financial year.

Non-Current Liabilities

The expected balance, at year end, of provisions for employee entitlements and debt that is not required to be paid within the next financial year.

Community Equity Retained equity includes City Capital and any Surplus / Deficit. Reserves include cash-backed reserves representing infrastructure charges and asset revaluation reserves which record the valuation adjustments to Council’s existing non-current assets.


ITEM 3 GOLD COAST WATER AND WASTE WASTE MANAGEMENT SERVICES DECEMBER 2016 BUDGET REVIEW FN334/252/17(P6) Refer 6 page attachment 1 BASIS FOR CONFIDENTIALITY Not Applicable. 2 EXECUTIVE SUMMARY Not Applicable. 3 PURPOSE OF REPORT The purpose of this report is to provide an overview of budget adjustments proposed for Waste Management Services at the December 2016 Budget Review. 4 PREVIOUS RESOLUTIONS 2016-17 Budget Adoption: The City’s 2016-17 Budget was adopted by Council at the Budget Meeting held on 24 June 2016. Resolution Number: G16.0624.002 July Budget Review:

Resolution Number: B16.0912.003 in part

6 It is proposed that the uncommitted surplus of $20,405,184 be allocated as follows:

d. $500,000 – transfer to GCWM reserve for landfill rehabilitation September Budget Review: Resolution Number: B16.1024.003

1. That Council approve the net decrease of $1.5 million to be transferred from the Waste Management Reserve.

2. That Council note budget variations per Attachments 2 and 3 are included in the September 2016 Budget Review.

CARRIED UNANIMOUSLY 5 DISCUSSION 5.1 Introduction The Local Government Act 2009 allows a Local Government to amend its budget for the financial year at any time before the year ends, by way of resolution. The City of Gold Coast Budget Review Policy requires any variations to the budget to be submitted to Council for approval through the quarterly budget review process. The current City of Gold Coast Budget Review Policy states that all reports dealing with budget variations or budget transfers must be referred to Special Budget Committee.


ITEM 3 (Continued) WASTE MANAGEMENT SERVICES DECEMBER 2016 BUDGET REVIEW FN334/252/17(P6) 5.2 Budget Adjustments Summary Proposed budget adjustments for the December 2016 Budget Review are set out in Table 1 below. These items are explained in detail in the following sections.

Table 1: Summary of Budget Adjustments – Waste Management Services December 2016 Budget Review

5.3 Operating Revenue An increase of $0.1 million in total operating revenue is proposed in the December Budget Review. Changes to the individual operating revenue items are set out in table 2 below.

Table 2 – Movement in Operating Revenue

5.3.1 Refuse Tipping Fees – decrease of $0.4 million Revenue from resource recovery operations at the Reedy Creek Recycling Centre has been adjusted following the change in contractual arrangements. Sales revenue from recycled items is now retained by the contractor, which is offset against a reduction in payments to the contractor for resource recovery services. 5.3.2 Interest on Investments – increase of $0.5 million Waste Management Services operations cash reserves are accumulated for future landfill remediation and other future investment requirements. This revenue represents an allocation of interest earned on these cash reserves for 2016-17.

Summary Income StatementDec 16Review

Sep 16Review

Jul ReproReview

2016-17Initial

For the period ended 30 June 2017 ($m) ($m) ($m) ($m) ($m) %Operating Revenue 96.9 96.8 96.8 96.8 0.1 0.1Operating Expenses 67.8 71.3 64.5 64.5 (3.6) (5.0)Total Operating Profit $ 29.1 $ 25.5 $ 32.3 $ 32.3 $ 3.7 14.4Loss on Sale of Assets 0.0 0.0 0.0 0.0 0.0 0.0Depreciation / Amortisation 7.9 7.9 2.2 2.2 0.0 0.0Earnings Before Interest and Taxation $ 21.2 $ 17.6 $ 30.1 $ 30.1 $ 3.7 20.8Interest Expense (QTC loan) 4.6 4.6 5.1 5.1 0.0 0.0Interest Margin Expense 0.2 0.2 0.2 0.2 0.0 0.0Income Tax Equivalents 5.8 5.8 5.8 5.8 0.0 0.0Net Profit After Taxation $ 10.6 $ 7.0 $ 18.9 $ 18.9 $ 3.7 52.6Dividend $ 7.7 $ 7.7 $ 7.7 $ 7.7 0.0 0.0Retained Earnings $ 2.9 ($ 0.7) $ 11.2 $ 11.2 $ 3.7 (496.8)

Dec vs Sep Movement

Operating RevenueDec 16Review

Sep 16Review

Jul ReproReview

2016-17Initial

For the period ended 30 June 2017 ($m) ($m) ($m) ($m) ($m) %Rates and Utility Charges 74.9 74.9 74.9 74.9 0.0 0.0Refuse Tipping Fees 8.1 8.5 8.5 8.5 (0.4) (5.2)Fees & Charges 1.0 1.0 1.0 1.0 0.0 0.0Internal Tipping Charges 8.4 8.4 8.4 8.4 0.0 0.0Community Service Obligations 3.0 3.0 3.0 3.0 0.0 0.0Interest on Outstanding Rates 0.1 0.1 0.1 0.1 0.0 0.0Interest on Investments 0.5 0.0 0.0 0.0 0.5 0.0Contributions & Donations Revenue 0.8 0.8 0.8 0.8 0.0 0.0Total Operating Revenue 96.9 96.8 96.8 96.8 0.1 0.1

Dec vs Sep Movement


ITEM 3 (Continued) WASTE MANAGEMENT SERVICES DECEMBER 2016 BUDGET REVIEW FN334/252/17(P6) 5.4 Operating Expenditure

The below graph provides a breakdown of Waste Management Services operating expenditure. Contract payments for waste collection services are the largest operating cost for the waste management business, representing 38 per cent of total operating expenses.

Graph 1 – GCWM operating expenditure by category

5.4.1 Operating Expenses As shown in Table 3, a total decrease of $3.6 million in operating expenses has been identified as part of the December 2016 Budget Review.

Table 3 - Movement in Operating Expenses - December 2016 Review

This decrease in operating expenses is due to:

(a) $3.3 million decrease in services: Made up of:

Legal expenses – decrease $3.0 million: removal of an allocation to fund waste management related legal matters. It is no longer anticipated that this outgoing will occur in the current financial year. An allocation will be incorporated within the 2017-18 budget.

Operating ExpensesDec 16Review

Sep 16Review

Jul ReproReview

2016-17Initial

For the period ended 30 June 2017 ($m) ($m) ($m) ($m) ($m) %Employee Expenses 9.1 9.1 8.8 8.8 0.0 0.0Materials 1.4 1.4 0.2 0.2 0.0 0.0Services 17.8 21.1 15.8 15.8 (3.3) (15.6)Council Corporate SLA 2.5 2.5 2.5 2.5 0.0 0.0Contract Payments 26.0 26.0 26.0 26.0 0.0 0.0Council Fleet & Plant 8.3 8.3 8.3 8.3 0.0 0.0Consultants 1.0 1.3 1.3 1.3 (0.3) (22.7)Electricity 0.2 0.2 0.2 0.2 0.0 0.0Other Expenditure 1.4 1.4 1.4 1.4 (0.0) (0.0)Total Operating Expenses $ 67.8 $ 71.3 $ 64.5 $ 64.5 ($ 3.6) (5.0)

Dec. vs Sept. Movement


ITEM 3 (Continued) WASTE MANAGEMENT SERVICES DECEMBER 2016 BUDGET REVIEW FN334/252/17(P6)

Reedy Creek Landfill Capping and Rehabilitation – decrease $0.6 million: Optimisation of the capacity of Cell 2 at the Reedy Creek landfill has enabled the capping program for Cell 1 to be deferred until 2018-19. The budget has been reduced accordingly. Operation of the Reedy Creek Resource Recovery Centre – decrease $0.6 million: As noted previously, following the implementation of a change in contractual arrangements at the Reedy Creek Centre, sales revenue from recycled items is being retained by the contractor, with a corresponding reduction in service payments made to the contractor. Hardware and software expenses – increase $0.6 million: An allocation was provided in the 2016-17 capital program for the acquisition of new software solutions. In line with the ICT roadmap, software is predominantly procured as a service and therefore does not meet the asset recognition criteria. Accordingly, this expenditure has been transferred to the operational budget. Green Waste Reduction Program – increase $0.3 million: A new contract for removal and processing of green waste from Council’s waste management facilities commenced this financial year. For the first year of the contract, the unit rate for processing green waste has increased by $6 per tonne.

(b) $0.3 million decrease in consultants: Reduction due to the cessation of the in-home environmental compliance monitoring program.

5.5 Community Services Obligations The Local Government Regulation 2012 defines a Community Service Obligation (CSO) as an obligation the local government imposes on a business unit (such as the waste management services) to do something that is not in the commercial interests of the business unit to do. The Regulation determines the CSO amount is to be treated as revenue of the business unit for an amount equal to the cost of carrying out the obligation, less any revenue arising from carrying out the activity. Table 4 (below) provides a summary of CSO’s currently provided within waste management. It is noted that the Annual Kerbside Clean-up is currently exceeding budget by approximately $80,000. At this stage, it is not proposed to make any adjustments to CSO, however a complete review will be undertaken at the completion of the 2016-17 program and relevant adjustments will be made in the final budget review of the year.

Table 4 – Movement in Community Service Obligations

Community Service ObligationsDec 16

ReviewSep 16

ReviewJul Repro

Review2016-17

Initial

For the period ended 30 June 2017 ($m) ($m) ($m) ($m) ($m) %

Disposal Costs for "Free of Charge" approved charties & organisations 0.46 0.46 0.46 0.46 0.00 0.0%Contributions and Donations 0.53 0.53 0.53 0.53 0.00 0.0%Waste Collections- Dead Animal Collection 0.06 0.06 0.06 0.06 0.00 0.0%- Clean-up Australia Day 0.02 0.02 0.02 0.02 0.00 0.0%- Street and Park bin services 0.48 0.48 0.48 0.48 0.00 0.0%- South Stradbroke Island Waste Management 0.38 0.38 0.38 0.38 0.00 0.0%- Annual Kerbside Cleanup 1.10 1.10 1.10 1.10 0.00 0.0%Total Waste Management 3.04 3.04 3.04 3.04 0.00 0.0%

Dec vs Sep Movement


ITEM 3 (Continued) WASTE MANAGEMENT SERVICES DECEMBER 2016 BUDGET REVIEW FN334/252/17(P6) 5.6 Capital Works Program Movements The 2016-17 initial approved capital works program included works totalling $14.22 million. As part of the reprovision process, this budget increased to $18.39 million. A decrease of $4.16 million was approved following the September budget review, resulting in a capital works program budget of $14.22 million. Following the December budget review, it is proposed to further reduce the program by $5.07 million resulting in a capital works program budget of $9.15 million. Table 5 (below) provides a summary of proposed capital expenditure at a program level.

Table 5 – Capital Expenditure

The $5.07 million budget reduction consists of movements in eight projects. The major contributing projects to the reduction are:

(a) $3.0 million decrease in Landfill Property Development: Budget decrease proposed as a result of the lack of suitable land available to purchase.

(b) $0.77 million decrease in Coomera Transfer Station Design and Construct:

Budget decrease due to delays in finalising the business case for the project. Revised project scheduling has pushed the construction works for this project to 2018-19.

(c) $0.63 million decrease in Hardware / Software Waste Collection: Budget has

been transferred to operational budget as software is purchased as a service and therefore does not able to be capitalised.

As part of the July Budget Review, an allocation of $500,000 was transferred to the Waste Management Reserve to address workplace health and safety issues identified at the City’s landfill sites. Detailed scoping for these works is currently underway and all works are scheduled for completion prior to the end of the financial year. For a full list of identified works please refer to Attachment 4. Refer to Attachment 3 for a detailed listing of all movements within the Capital Program for 2016-17.

Mvt ($) Mvt (%)

Landfills 7.93 11.32 14.36 (3.38) (30%)

Transfer Stations 0.80 1.87 2.08 (1.08) (57%)

Waste Collection 0.00 0.62 1.52 (0.62) (100%)

Fleet and Plant 0.42 0.42 0.42 0.00 0%

Total Capital Expenses

9.15 14.22 18.39 (5.07) (28%)

Gold Coast Water and Waste Waste Management Capital Program

ProductDec 16 Review

Sept 16 Review

2016-17 Initial December v September


ITEM 3 (Continued) WASTE MANAGEMENT SERVICES DECEMBER 2016 BUDGET REVIEW FN334/252/17(P2) 5.7 Procurement Savings This treatment of procurement savings aligns with the City’s Budget Review Policy which states (in part):

“Procurement savings sourced from budgets within Council’s significant business activities ….. will be retained within the business activity and transferred to reserves where appropriate.”

Table 6 – Procurement Savings

Relevant budgets have been reduced to reflect the above savings. Procurement savings are recognised through the transfer to reserve. Total procurement savings adjustments in this review are $37,593, of which $33,943 are operational savings which have been removed from waste management budgets. This is reflected in Table 7 - Distribution of Earnings. 5.8 Distribution of Earnings before Interest and Tax (EBIT) Following the adjustments outlined in this report, 2016-17 Earnings before Interest and Tax (EBIT), on a cash basis, is estimated at $29.1 million (operating revenue of $96.9 million less operating expenditure of $67.8 million).

* SLA, Fleet & Plant and Land Tax payments are further payments to Council which are recorded within GCWM’s Operating

Expenses and are therefore not reported as part of the Distribution of Earnings. Table 7 – Distribution of Earnings

The net impact results in an increase of $3.7 million in transfer to waste management reserve.

Procurement Savings ($'000)

July Aug Sept Oct Nov Total Removed in September

Removed in December

Total Procurement

Operational 29.94 21.15 11.44 10.43 12.07 85.03 51.09 33.94 85.03 Recoverable - - - - - - - - - Capital 1.26 0.76 0.76 1.75 1.15 5.67 2.02 3.65 5.67

31.20 21.90 12.20 12.17 13.22 90.70 53.11 37.59 90.70

Distribution of EarningsDec 16Review

Sep 16Review

Jul ReproReview

2016-17Initial

For the period ended 30 June 2017 ($m) ($m) ($m) ($m) ($m) %Interest Expense (External) 4.6 4.6 5.1 5.1 0.0 0.0Principal Repayment (External) 8.7 8.7 9.4 9.4 0.0 0.0Debt Service Payment $ 13.3 $ 13.3 $ 14.5 $ 14.5 $ 0.0 0.0Capital Expenditure 9.2 14.2 18.4 11.4 (5.1) (35.7)Loan Funding (6.6) (11.2) (11.2) (6.5) 4.6 (40.8)Net Capital Expenditure $ 2.5 $ 3.0 $ 7.2 $ 4.9 ($ 0.5) (16.6)Tax Equivalents (30% taxable earnings) 5.8 5.8 5.8 5.8 (0.0) (0.0)Dividend 7.7 7.7 7.7 7.7 0.0 0.0Interest Expense Margin 0.2 0.2 0.2 0.2 0.0 0.0

Payments to Council(Excluding SLA, Fleet & Plant and Land Tax)

$ 13.7 $ 13.7 $ 13.7 $ 13.7 ($ 0.0) (0.0)

Procurement Savings (operational costs only) 0.0 0.1 0.0 0.0 (0.0) (33.6)Other Reserve Transfers 1.8 (2.4) (0.8) (0.8) 4.2 (177.1)Total Transfers to/from Reserve $ 1.9 ($ 2.3) ($ 0.8) ($ 0.8) $ 4.2 (180.3)Prior Year Reprovision (2.2) (2.2) (2.2) 0.0 0.0 0.0Total Distribution $ 29.1 $ 25.5 $ 32.3 $ 32.3 $ 3.7 14.4

Dec vs Sep Movement


ITEM 3 (Continued) WASTE MANAGEMENT SERVICES DECEMBER 2016 BUDGET REVIEW FN334/252/17(P6) 5.9 Waste Management Reserve Cash surpluses from waste management operations are transferred to the Waste Management Reserve. These cash reserves are being accumulated for future financial obligations associated with landfill remediation. Considerable site closure and remediation costs will be incurred on landfill sites once they are exhausted. The waste management reserve is also utilised for investment in the future investment program. The main transfers into the reserve are:

$3 million deferral of legal expenditure to 2017‐18

$0.6 million deferral of landfill capping and remediation With the movements processed at this budget review, the reserve balance, as at 30 June 2017 is projected to be in the order of $25.6 million. 5.10 Returns to Community

Waste Management Services is expected to operate as a commercial business enterprise and provide an appropriate return to the community, based on the community’s investment in the waste management business. Projected returns payable to the City for the year ended 30 June 2017 are set out below:

Table 8 – Returns to Community

Total Returns to the Community (excluding SLA, Insurance Premiums and Fleet & Plant) remain at $15.1 million for 2016-17 following this budget review.

Returns to CommunityDec 16Review

Sep 16Review

Jul ReproReview

2016-17Initial

For the period ended 30 June 2017 ($m) ($m) ($m) ($m) ($m) %Interest Margin Expense 0.2 0.2 0.2 0.2 0.0 0.0Income Tax 5.8 5.8 5.8 5.8 0.0 0.0Land Tax 1.4 1.4 1.4 1.4 0.0 0.0Dividend 7.7 7.7 7.7 7.7 0.0 0.0

Returns to Community(Exc SLA, Insurance Premiums and Fleet & Plant)

$ 15.1 $ 15.1 $ 15.1 $ 15.1 $ 0.0 0.0

SLA Costs 2.5 2.5 2.5 2.5 0.0 0.0Fleet & Plant 8.3 8.3 8.3 8.3 0.0 0.0Total Payments to Community $ 25.9 $ 25.9 $ 25.9 $ 25.9 $ 0.0 0.0

Dec vs Sep Movement


ITEM 3 (Continued) WASTE MANAGEMENT SERVICES DECEMBER 2016 BUDGET REVIEW FN334/252/17(P6) 6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN Gold Coast 2020

Theme: The best place to live and visit.

Outcome 1.3: We have sustainable solid and liquid waste disposal – We innovate to maximise recycling and reduce waste.

Key strategy: Develop and implement the Solid Waste Strategy and ensure that resources and waste are managed for the benefit of future generations. Operational Plan 2016-17

The Solid Waste Strategy 2024 was adopted by Council on 1 September 2015. Key outcomes of the Strategy include:

The city and the community actively practise waste avoidance and other positive waste behaviours

Waste re-use, recycling and resource recovery opportunities are maximised prior to landfill disposal

Our capacity to manage future waste is secured Solid waste management has minimal negative impact on our environment and public

health Corporate Strategy Framework

Changes to the Corporate Strategy Framework identified that a corporate strategy “supports the creation of a desired future outcome for the community and identifies priorities for investment”. The Solid Waste Strategy aligns with the new Corporate Strategy Framework and has been developed in consultation with relevant stakeholders across Directorates. 7 GOLD COAST 2018 COMMONWEALTH GAMES™ IMPACT The proposed budget changes have no direct impact on the 2018 Commonwealth Games. 8 FUNDING AND RESOURCING REQUIREMENTS Not Applicable.


ITEM 3 (Continued) WASTE MANAGEMENT SERVICES DECEMBER 2016 BUDGET REVIEW FN334/252/17(P6) 9 RISK MANAGEMENT The following Directorate risks are relevant to this report: Risk Number

Description

Risk No. CO000431

Non-compliance with State and Commonwealth legislation leading to potential prosecution of Council, executive officer liability and negative city image.

Risk No. CO000433

Qualified audit leading to Council’s reputation being damaged.

Risk No. CO000435

Failure to achieve a sustainable long term financial position leading to negative impacts on Council’s ability to deliver on its key focus area commitments.

10 STATUTORY MATTERS The following State Government legislation has relevance to this report, with respect to the business activities and practices of the Waste Management Services commercial business unit:

Local Government Act 2009

Local Government Regulation 2012

Waste Reduction & Recycling Act 2011

Waste Reduction & Recycling Regulation 2011

Queensland Competition Authority Act 1997

11 COUNCIL POLICIES The following Council policies are relevant to this report:

City of Gold Coast Budget Review Policy

Debt Policy

Revenue Policy

12 DELEGATIONS Not Applicable.


ITEM 3 (Continued) WASTE MANAGEMENT SERVICES DECEMBER 2016 BUDGET REVIEW FN334/252/17(P6) 13 COORDINATION & CONSULTATION Title of the Stakeholder Consulted

Directorate or Organisation

Stakeholder Satisfaction With Content of Report and Recommendations (Yes/No)

Executive Coordinator Directorate Finances

Office of the Chief Executive Officer

Yes

14 STAKEHOLDER IMPACTS Not Applicable. 15 TIMING Not Applicable. 16 CONCLUSION The City of Gold Coast Budget Review Policy requires that, except for items identified for corporate funding, each Directorate is to submit a balanced quarterly budget review. Budget movements contained in this report comply with this requirement. Following completion of Waste Management Services’ detailed quarterly review of capital and operating budgets (revenue and expense), movements have been recorded across several areas of the business. Budget movements have not required corporate funding. Table 9 below provides a summary of adjustments recorded at this review:

Table 9: Summary of Budget Adjustments – December 2016 Budget Review

Summary Income StatementDec 16Review

Sep 16Review

Jul ReproReview

2016-17Initial

For the period ended 30 June 2017 ($m) ($m) ($m) ($m) ($m) %Operating Revenue 96.9 96.8 96.8 96.8 0.1 0.1Operating Expenses 67.8 71.3 64.5 64.5 (3.6) (5.0)Total Operating Profit $ 29.1 $ 25.5 $ 32.3 $ 32.3 $ 3.7 14.4Loss on Sale of Assets 0.0 0.0 0.0 0.0 0.0 0.0Depreciation / Amortisation 7.9 7.9 2.2 2.2 0.0 0.0Earnings Before Interest and Taxation $ 21.2 $ 17.6 $ 30.1 $ 30.1 $ 3.7 20.8Interest Expense (QTC loan) 4.6 4.6 5.1 5.1 0.0 0.0Interest Margin Expense 0.2 0.2 0.2 0.2 0.0 0.0Income Tax Equivalents 5.8 5.8 5.8 5.8 (0.0) (0.0)Net Profit After Taxation $ 10.6 $ 7.0 $ 18.9 $ 18.9 $ 3.7 52.6Dividend $ 7.7 $ 7.7 $ 7.7 $ 7.7 0.0 0.0Retained Earnings $ 2.9 ($ 0.7) $ 11.2 $ 11.2 $ 3.7 (496.8)

Capital Expenditure 9.2 14.2 18.4 11.4 (5.1) (35.7)Total Capital Works Program Expenditure $ 9.2 $ 14.2 $ 18.4 $ 11.4 ($ 5.1) (35.7)

Dec vs Sep Movement


ITEM 3 (Continued) WASTE MANAGEMENT SERVICES DECEMBER 2016 BUDGET REVIEW FN334/252/17(P6) The net result is a forecast payment of $15.1 million (excluding SLA, Insurance Premiums and Fleet & Plant) to the City in 2016-17.

Table 10 –Returns to Community

17 RECOMMENDATION It is recommended that Council resolves as follows: 1 That Council approve the net increase of $4.2 million to be transferred to the Waste

Management Reserve.

2 That Council note budget variations per Attachments 2 and 3 are included in the December 2016 Budget Review.

Author: Authorised by:

Karen O’Brien Paul Heaton Manager Business Performance Director Gold Coast Water and Waste 9 January 2017

TRACKS REF: #59168891 COMMITTEE RECOMMENDATION B17.0130.003 moved Cr Crichlow seconded Cr Boulton 1 That Council approve the net increase of $4.2 million to be transferred to the

Waste Management Reserve.

2 That Council note budget variations per Attachments 2 and 3 are included in the December 2016 Budget Review.

CARRIED

Returns to CommunityDec 16Review

Sep 16Review

Jul ReproReview

2016-17Initial

For the period ended 30 June 2017 ($m) ($m) ($m) ($m) ($m) %Interest Margin Expense 0.2 0.2 0.2 0.2 0.0 0.0Income Tax 5.8 5.8 5.8 5.8 0.0 0.0Land Tax 1.4 1.4 1.4 1.4 0.0 0.0Dividend 7.7 7.7 7.7 7.7 0.0 0.0

Returns to Community(Exc SLA, Insurance Premiums and Fleet & Plant)

$ 15.1 $ 15.1 $ 15.1 $ 15.1 $ 0.0 0.0

SLA Costs 2.5 2.5 2.5 2.5 0.0 0.0Fleet & Plant 8.3 8.3 8.3 8.3 0.0 0.0Total Payments to Community $ 25.9 $ 25.9 $ 25.9 $ 25.9 $ 0.0 0.0

Dec vs Sep Movement



Attachment 1 DETAILED INCOME STATEMENT (ACCRUAL) December 2016 Budget Review

Waste Management ServicesFinancial Management Statement {Accrual} Dec 16 Sept 16 Jul Repro 2016-17 Dec v Sep

Proposed for Year Ended 30th June 2017 Review($'000's)

Review($'000's)

Review($'000's)

Initial($'000's)

Mvt($'000's)

% Mvt

Operating RevenueWaste Utility Rate Revenue 74,881 74,881 74,881 74,881 0 0.0Refuse Tipping Fees 8,022 8,466 8,466 8,466 (443) (5.2)Fees & Charges 1,028 1,028 1,028 1,028 0 0.0Internal Tipping Charges 8,363 8,363 8,363 8,363 0 0.0Community Service Obligations 3,043 3,043 3,043 3,043 0 0.0Interest on Outstanding Rates 137 137 137 137 0 0.0Interest on Investments 517 0 0 0 517 0.0Grants & Subsidies Revenue 0 0 0 0 0 0.0Contributions & Donations Revenue 845 845 845 845 0 0.0Other Operating Income 43 43 43 43 0 0.0Total Operating Revenue 96,880 96,806 96,806 96,806 74 0.1

Operating ExpensesEmployee Expenses 9,130 9,130 8,813 8,813 0 0.0Materials 1,439 1,439 239 239 0 0.0Services 17,802 21,085 15,778 15,778 3,282 15.6Council Corporate SLA 2,531 2,531 2,531 2,531 0 0.0Waste Collection Payments 25,974 25,974 25,960 25,960 0 0.0Council Fleet & Plant 8,325 8,325 8,325 8,325 0 0.0Consultants 1,019 1,319 1,282 1,282 300 22.7Electricity 155 155 155 155 0 0.0Other Expenditure 1,379 1,379 1,379 1,379 0 0.0Total Operating Expenses 67,755 71,337 64,462 64,462 3,582 5.0

Total Operating Profit 29,125 25,468 32,343 32,343 3,656 14.4

Gain/Loss on Sale of Assets 0 0 0 0 0 0.0Depreciation / Amortisation 7,906 7,906 2,243 2,243 0 0.0

EBIT 21,219 17,563 30,101 30,101 3,656 20.8Interest Expense (QTC loan) 4,588 4,588 5,140 5,140 0 0.0Interest Margin Expense 209 209 209 209 0 0.0Income Tax Equivalents 5,810 5,810 5,810 5,810 0 0.0NPAT 10,612 6,955 18,941 18,941 3,657 52.6

Dividend 7,691 7,691 7,691 7,691 0 0.0

Retained Earnings 2,921 (736) 11,250 11,250 3,657 (496.8)



Attachment 2 DETAILED INCOME STATEMENT (CASH) December 2016 Budget Review

Waste Management ServicesFinancial Management Statement {Cash} Dec 16 Sept 16 Jul Repro 2016-17 Dec v Sep

Proposed for Year Ended 30th June 2017 Review($'000)

Review($'000)

Review($'000)

Initial($'000)

Mvt($'000)

% Mvt

Operating RevenueWaste Utility Rate Revenue 74,881 74,881 74,881 74,881 0 0.0Refuse Tipping Fees 8,022 8,466 8,466 8,466 (443) (5.2)Fees & Charges 1,028 1,028 1,028 1,028 0 0.0Internal Tipping Charges 8,363 8,363 8,363 8,363 0 0.0Community Service Obligations 3,043 3,043 3,043 3,043 0 0.0Interest on Outstanding Rates 137 137 137 137 0 0.0Interest on Investments 517 0 0 0 517 0.0Contributions & Donations Revenue 845 845 845 845 0 0.0Other Operating Income 43 43 43 43 0 0.0Total Operating Revenue 96,880 96,806 96,806 96,806 74 0.1

Operating ExpensesEmployee Expenses 9,130 9,130 8,813 8,813 0 0.0Materials 1,439 1,439 239 239 0 0.0Services 17,802 21,085 15,778 15,778 3,282 20.8Council Corporate SLA 2,531 2,531 2,531 2,531 0 0.0Waste Collection Payments 25,974 25,974 25,960 25,960 0 0.0Council Fleet & Plant 8,325 8,325 8,325 8,325 0 0.0Consultants 1,019 1,319 1,282 1,282 300 23.4Electricity 155 155 155 155 0 0.0Other Expenditure 1,379 1,379 1,379 1,379 0 0.0Total Operating Expenses 67,755 71,337 64,462 64,462 3,582 5.6

Total Operating Profit 29,125 25,468 32,343 32,343 3,656 11.3

Gain/Loss on Sale of Assets 0 0 0 0 0 0.0Depreciation / Amortisation 0 0 0 0 0 0.0

EBIT 29,125 25,468 32,343 32,343 3,656 11.3Interest Expense (QTC loan) 4,588 4,588 5,140 5,140 0 0.0Interest Margin Expense 209 209 209 209 0 0.0Income Tax Equivalents 5,810 5,810 5,810 5,810 0 0.0NPAT 18,518 14,861 21,184 21,184 3,657 17.3

Dividend 7,691 7,691 7,691 7,691 0 0.0Debt Redemption 8,686 8,686 9,365 9,365 0 0.0Capital Expenditure 9,150 14,224 18,385 11,437 5,074 27.6Loan Funding (6,615) (11,183) (11,210) (6,510) (4,568) 40.8Prior year Surplus adjustments (2,248) (2,248) (2,248) 0 0 0.0Transfer To/(From) Reserve 1,854 (2,309) (799) (799) (4,162) 520.7



Attachment 2

GOLD COAST WASTE MANAGEMENT – DECEMBER 2016 BUDGET REVIEW BUDGET CENTRE MOVEMENTS

Budget Centre Description2016-17 December

Review Recurrent Movement

2016-17 December Review Non-

Recurrent Movement

2016-17 December Review Total

Movement

2016-17 Total Revised Budget

CS4700C003 - Refuse Tips - Capital 0 (382,673) (382,673) 1,852,476

CS4700C004 - Transfer Stations - Capital 0 0 0 426,668

CS4700O001 - Office Furniture & Equipment - Waste Mgt 0 0 0 2,000

CS4700O002 - Computer Hardware/Software < $10000 0 0 0 4,100

CS4700O003 - Waste Management - Administration 0 (1,000,000) (1,000,000) 2,218,036

CS4700O004 - Transfer Stations - Operations (156,700) (10) (156,710) 5,756,298

CS4700O005 - Landfill Operations 30,000 (16,820) 13,180 (15,380,013)

CS4700O018 - Cost Centre Plant - Waste Management 0 0 0 220,800

CS4710O001 - Waste Management - Administration 0 0 0 18,239,853

CS4710O003 - Recycling Service Contracts 0 0 0 7,438,743

CS4710O004 - Waste Service Contracts 0 0 0 15,925,051

CS4710O005 - Stradbroke Island Waste Disposal 0 0 0 382,500

CS4710O006 - Wheelie Bins 0 0 0 1,816,600

CS4710O010 - Cost Centre Plant - Waste Management 0 0 0 27,837

CS4740D001 - Debt Servicing Garbage Disposal 0 0 0 13,274,036

CS4740N002 - Comp Neutrality – Int Margin Loans 0 0 0 209,000

CS4740N003 - Income Tax Equivalent - Waste 0 0 0 7,188,588

CS4740N004 - Dividend – Waste 0 0 0 7,691,121

CS4740N006 - CSO Remission - Waste 0 0 0 (3,043,221)

CS4740O001 - Refuse Charge Donations 0 0 0 534,681

CS4740O002 - Refuse Charge 0 0 0 (75,232,652)

CS4740O003 - Reserve Transfers - Waste 0 1,445,315 1,445,315 5,857,616

CS4740O004 - Annual Community Grants 0 0 0 463,971

CS4740O007 - Accumulated Surplus Brought Forward 0 0 0 (4,321,414)

CS4740O008 - Branch Management 0 0 0 651,957

CS4740S001 - SLA Org Services to Waste Mgmt 0 0 0 1,909,000

CS4740S002 - SLA OCEO to Waste Mgmt 0 0 0 622,000

GW4740O009 - Waste Management Administration (517,000) 615,000 98,000 167,600

GW1100O001 - Waste & Recycling Centres Management 0 (2,221) (2,221) 848,088

GW1100O002 - Helensvale Waste & Recycling Centre 0 (4,741) (4,741) 587,303

GW1100O003 - Molendinar Waste & Recycling Centre 0 (3,482) (3,482) 1,315,925

GW1100O004 - Merrimac Waste & Recycling Centre 0 (2,609) (2,609) 271,011

GW1100O005 - Reedy Creek Waste & Recycling Centre 0 (816) (816) 969,090

GW1100O006 - Currumbin Waste & Recycling Centre 0 0 0 102,270

GW1100O007 - Jacobs Well Waste & Recycling Centre 0 (2,066) (2,066) 178,696

GW1100O008 - Mudgeeraba Waste & Recycling Centre 0 (697) (697) 239,406

GW1100O009 - Minor Waste & Recycling Centre 0 0 0 45,643

GW1120O001 - Solid Waste Strategy 0 0 0 858,210

GW1120O002 - Recycling Promotion & Resources 0 (480) (480) (318,874)

TOTAL (643,700) 643,700 0 0



Attachment 3

GOLD COAST WASTE MANAGEMENT – CAPTIAL MOVEMENT SCHEDULE DECEMBER 2016 BUDGET REVIEW

PROJECT PROJECT DESCRIPTION2016-17

INITIAL BUDGETINITIAL BUDGET +

REPROVISIONSQ1 FORECAST Q2 FORECAST VARIANCE ($)

31085 Prime Mover and Trailer 420,250 420,250 420,250 420,250 0

30500 Suntown Closure & Gas Issues - 5,803,786 5,803,786 5,803,786 0

31087 Landfill Property Development 3,000,000 3,000,000 3,000,000 - (3,000,000)

30526 Tugun Landfill Capping and Rehab 1,900,000 1,933,936 - - 0

30642 Reedy Creek Landfill (Cell 2) - 660,673 660,673 434,500 (226,173)

30068 Reedy Creek Landfill Capping and Rehab 600,000 600,000 - - 0

30677 Stapylton Landfill Capping and Rehab 525,313 525,313 - - 0

30389 Refuse Disposal Minor Civil Works 2016-17 472,781 472,781 472,781 472,781 0

30479 Stapylton Landfill Line (Cell 6) - 400,000 400,000 243,500 (156,500)

30184 Landfill Forward Planning & Design 210,000 383,284 - - 0

31086 Environmental Monitoring Network Equipment 200,000 200,000 200,000 200,000 0

30262 Landfill Minor Renewals 2016-17 120,039 120,039 120,039 120,039 0

30299 Molendinar Landfill Capping and Rehab 100,000 100,000 - - 0

30486 Stapylton Leachate System 100,000 100,000 100,000 100,000 0

30386 Reedy Creek Extension/Development - 39,380 39,380 39,380 0

30556 Windborne litter control equip - 20,000 20,000 20,000 0

30115 Coomera Transfer Station D&C 1,000,000 1,000,000 1,000,000 225,000 (775,000)

30516 Transfer Station Plant and Equip 307,500 307,500 307,500 307,500 0

30517 Transfer Station Minor Civil Works 2016-17 262,656 262,656 262,656 69,500 (193,156)

30185 Transfer Station Forward Planning & Design 210,125 210,125 - - 0

30382 Purchase of New RORO Bins 105,000 160,501 160,501 175,500 14,999

30523 Transfer Station Minor Renewals 2016-17 141,625 141,625 141,625 18,500 (123,125)

30390 Refuse/Recycling Bins 1,120,000 881,885 - - 0

30224 Hardware/Software Waste Collection 615,000 615,000 615,000 - (615,000)

30170 Extend Waste Service Area 26,266 26,266 - - 0

80208 Stapylton Landfill Site Improvements - - 250,000 250,000 0

80209 Reedy Creek Landfill Site Improvement - - 250,000 250,000 0

$ 11,436,555 $ 18,385,000 $ 14,224,191 $ 9,150,236 (5,073,955)



Attachment 4 Planned Safety Improvements – Stapylton Landfill

Task Decription Sub TaskStart Date

Completion DatePreliminary Cost

Estimate

(i) Establish hazardous area exclusion zones Feb-17 Apr-17 $12,000

(ii)Relocate low voltage power supply 1 metre from dual purpose LFG wells Mar-17 May-17 $10,000

(iii)Develop fall from height safeguards during reinjection wells extensions Feb-17 Feb-17 $1,000

(iv) Hazardous waste dosier development Feb-17 Apr-17 $15,000

(i) Floating platforms and gantry Apr-17 Jun-17 $40,000

(ii)Pump suction line and control manifold installation Apr-17 Jun-17 $12,000

(iii)Installation of new pump and electrcial connection to principal dirty water sed basin Apr-17 Jun-17 $10,000

Exclusion Fencing Sedimentation Basins

(i) Perimeter fencing of all site sediment ponds Feb-17 Apr-17 $25,000

(i) Provision of mobile site operator shelter Feb-17 Mar-17 $10,000

(i) Purchase of mobile electronic signage Mar-17 Apr-17 $20,000

(i) Purchase additional landfill lids Feb-17 Jun-17 $120,000.00

(i) Purchase additional mobile litter fence traps Feb-17 Jun-17 $30,000

Total $305,000

Litter control

Landfill Gas risk mitigation works as per consulatnts report

Surface Water Sampling Platforms

Environmental Exposure Control

Site signage Enhancement

Alternate Daily Cover Equipment



Attachment 4 Planned Safety Improvements – Reedy Creek Landfill

Task Decription Sub Task Start Date Completion

DatePreliminary Cost Estimate

(i) Establish hazardous area exclusion zones Feb-17 Apr-17 $8,000

(ii)Relocate low voltage power supply 1 metre from dual purpose LFG wells Mar-17 May-17 $5,000

(iii)Develop fall from height safeguards during reinjection wells extensions Feb-17 Feb-17 $1,000

(iv) Hazardous waste dosier development Feb-17 Apr-17 $8,000

(i) Floating platforms and gantry Apr-17 Jun-17 $25,000

(ii)Pump suction line and control manifold installation Apr-17 Jun-17 $8,000

Exclusion Fencing Sedimentation Basins

(i) Perimeter fencing of all site sediment ponds Feb-17 Apr-17 $25,000

Environmental Exposure Control

(i) Provision of mobile site operator shelter Feb-17 Mar-17 $10,000

Site signage Enhancement

(i) Purchase of mobile electronic signage Mar-17 Apr-17 $20,000

Alternate Daily Cover Equipment

(i) Purchase additional landfill lids Feb-17 Jun-17 $120,000.00

Litter control

(i) Purchase additional mobile litter fence traps Feb-17 Jun-17 $30,000

Total $260,000

Landfill Gas risk mitigation works as per consulatnts report

Surface Water Sampling Platforms


ITEM 4 GOLD COAST WATER AND WASTE WATER AND SEWERAGE SERVICES - DECEMBER 2016 BUDGET REVIEW FN334/252/17(P6) Refer 6 page attachment 1 BASIS FOR CONFIDENTIALITY Not Applicable. 2 EXECUTIVE SUMMARY Not Applicable. 3 PURPOSE OF REPORT The purpose of this report is to provide an overview of movements proposed for Water and Sewerage Services at the December 2016 Budget Review. 4 PREVIOUS RESOLUTIONS 2016-17 Budget Adoption:

The City’s 2016-17 Budget was adopted by Council at the Budget Meeting held on 24 June 2016. Resolution Number: G16.0624.002 September Budget Review:

Resolution Number: B16.1024.004

1. That Council approve the decrease of $9.0 million to be transferred from the Water and Sewerage Infrastructure Reserve, with total anticipated transfer to Reserve now being $30.8 million for the 2016-17 financial year.

2. That Council note budget variations per Attachments 2 and 3 will be included in the September 2016 Budget Review.

CARRIED UNANIMOUSLY 5 DISCUSSION

5.1 Introduction The Local Government Act 2009 allows a Local Government to amend its budget for the financial year at any time before the year ends, by way of resolution. The City of Gold Coast Budget Review Policy requires any variations to the budget to be submitted to Council for approval through the quarterly budget review process. The current City of Gold Coast Budget Review Policy states that all reports dealing with budget variations or budget transfers must be referred to Special Budget Committee.


ITEM 4 (Continued) WATER AND SEWERAGE SERVICES - DECEMBER 2016 BUDGET REVIEW FN334/252/17(P6) 5.2 Major Budget Adjustments Water and Sewerage Services’ proposed budget movements for the December 2016 Budget Review are set out in Table 1 (below). These items are explained in detail in the following sections.

Table 1: Summary of Budget Adjustments – December 2016 Budget Review

5.3 Operating Revenue A total decrease of $3.4 million in operating revenue has been recorded at this budget review, as set out in Table 2 (below).

Table 2 – Movement in Operating Revenue

5.3.1 Volumetric Charges – decrease of $3.4 million An error occurred in the preparation of the 2016-17 initial budget related to allocations for concealed leakage remissions. Correction of this error results in a reduction in expected volumetric revenue of $3.4 million.

Summary Income StatementDec 16 Review

Sep 16 Review

2016-17 Initial

Dec. vs Sept.

For the period ended 30 June 2017 ($m) ($m) ($m) $ m %Operating Revenue 486.6 489.9 488.6 (3.4) (0.7)Flow-Dependant Expenditure 178.4 178.4 178.4 - - Controllable Expenses 105.9 105.7 102.0 (0.2) (0.2)

Operating Result $ 202.3 $ 205.9 $ 208.3 ($ 3.6) (1.7)Loss on Sale of Assets 5.0 5.0 5.0 - -

Net Profit before Capital Items $ 197.3 $ 200.9 $ 203.3 ($ 3.6) (1.8)Capital Revenue 60.3 55.7 55.5 4.6 8.3 Depreciation / Amortisation 92.0 92.0 92.0 - -

Earnings Before Interest and Taxation $ 165.6 $ 164.6 $ 166.8 $ 1.1 0.6Interest Expense (QTC loan) 3.1 3.1 3.1 - - Interest Margin Expense 0.9 0.9 0.9 - - Shareholder Interest Expense 80.4 80.4 80.4 - - Income Tax Equivalents 38.6 38.6 38.6 - -

Net Profit After Taxation $ 42.7 $ 41.6 $ 43.8 $ 1.1 2.5

Capital Expenditure 74.6 74.8 72.0 0.3 0.4

Total Capital Works Program Expendit $ 74.6 $ 74.8 $ 72.0 $ 0.3 0.4

Operating RevenueDec 16 Review

Sep 16 Review

2016-17 Initial

Dec. vs Sept.

For the period ended 30 June 2017 ($m) ($m) ($m) $ m %

Service Charges 235.0 235.0 235.0 - - Volumetric Charges 239.1 242.5 242.5 (3.4) (1.4)Less: Concealed Leakage (2.0) (2.0) (2.0) - - Interest on Outstanding Rates 1.8 1.8 1.8 - - Interest on Investments 7.6 7.6 6.5 - - Fees and Charges 5.1 5.0 4.8 0.1 1.3

Total Operating Revenue $ 486.6 $ 489.9 $ 488.6 ($ 3.4) (0.7)


ITEM 4 (Continued) WATER AND SEWERAGE SERVICES - DECEMBER 2016 BUDGET REVIEW FN334/252/17(P6) 5.3.2 Fees and Charges – increase of $0.1 million Fees and Charges revenue has been increased by $0.1 million, recognising reimbursement for costs associated to Gold Coast Light Rail repairs. 5.4 Operating Expenses The below graph provides a breakdown of water and sewerage services operating expenses. It is noted that bulk water purchases equate to 57% of total operating expenses.

Graph 1 – Operating expenditure by category

5.4.1 Flow-Dependant Expenses As shown in Table 3 (below), no changes are proposed to flow-dependant expenses at this review. These costs are monitored throughout the year and will be reviewed at a future budget review if necessary.

Table 3 - Movement in Flow Dependant Expenses - December 2016 Review

Flow-Dependant ExpenditureDec 16 Review

Sep 16 Review

2016-17 Initial

Dec. vs Sept.


Bulk Water Purchase 161.6 161.6 161.6 - - Electricity 9.9 9.9 9.9 - - Biosolids Disposal 3.9 3.9 3.9 - - Chemicals 3.0 3.0 3.0 - -

Total Flow-Dependant Expenditure $ 178.4 $ 178.4 $ 178.4 $ 0.0 0.0


ITEM 4 (Continued) WATER AND SEWERAGE SERVICES - DECEMBER 2016 BUDGET REVIEW FN334/252/17(P6) 5.4.2 Controllable Expenses As shown in Table 4, a total increase of $0.2 million in controllable expenses has been identified as part of the December 2016 Budget Review.

Table 4 - Movement in Controllable Expenses - December 2016 Review

As part of Gold Coast Water and Waste’s (GCWW) quarterly business performance review, a full review of all operational projects and initiatives was undertaken. A number of movements have been identified due to management reprioritisation of programs of work, scheduling changes and available resourcing. Additionally, there has been substantial movement between ‘line items’ within existing project budget allocations. Overall there was only a $0.2 million increase in controllable expenditure. The proposed increase in controllable expenses is due to:

1 $0.3 million increase in employee expenses: made up of the following:

a. Operational Projects and Initiatives – increase of $0.3 million: increase in

contingent labour resources to assist in the delivery of business efficiency program of work, sewerage catchment and integrated water planning and recycled water management plan development. This increase is offset by reduction due to transfer of budget allocation to services.

b. Water Meter Reading function – increase of $0.2 million: from 1 January

2017, four officers transfer from Organisational Services to GCWW. This increase is offset by a reduction in the SLA charge from Organisational Services.

c. Procurement savings – decrease of $0.2 million: procurement savings

recognised on contingent labour charges within the operational budget.

Controllable ExpensesDec 16 Review

Sep 16 Review

2016-17 Initial

Dec. vs Sept.


Employee Expenses 47.9 47.6 44.4 (0.3) (0.6)Services 19.7 19.2 19.5 (0.5) (2.6)Council Corporate SLA 19.0 19.9 19.9 0.9 4.5Materials 6.1 6.1 6.1 0.0 0.8Council Fleet & Plant 4.2 4.2 4.2 (0.0) (0.7)Other Expenditure 1.5 1.5 1.5 - 0.0Consultancies 1.9 1.6 0.8 (0.3) (16.2)Wastewater Treatment Charge 3.4 3.4 3.4 - 0.0Insurance Premiums 2.0 2.0 2.0 - 0.0Regulatory Expenses 0.2 0.2 0.2 - 0.0

Total Controllable Expenses $ 105.9 $ 105.7 $ 102.0 ($ 0.2) (0.2)


ITEM 4 (Continued) WATER AND SEWERAGE SERVICES - DECEMBER 2016 BUDGET REVIEW FN334/252/17(P6)

2 $0.5 million increase in services: This increase made up of:

a. Water Meter Reading function – increase of $0.7 million: As noted previously,

from 1 January 2017, responsibility for reading the City’s water meters transfers to GCWW. Contractual payments for external water meter reading services also transfers. This increase is offset by a decrease in the SLA charge from Organisational Services.

b. Operational Projects and Initiatives – increase of $0.6 million: The major contributors to this increase include increase in maintenance hole condition assessments due to accelerated program, works associated with Gold Coast Light Rail defects plus transfers from employee expenses.

c. Procurement savings – decrease of $0.8 million: procurement savings recognised on operational services.

3 $0.9 million decrease in council corporate SLAs: reduction in the SLA charge

from Organisational Services as a result of the transfer of the water meter reading function to GCWW, effective 1 January 2017.

4 $0.3 million increase in Consultancies: The major contributors to this increase include the engagement of a specialist to undertake odour and air quality impact assessments in connection with Development Applications to ensure developments are appropriately conditioned and transfers from employee expenses.

5.5 Community Service Obligation - Catchment Management Unit In accordance with Sections 23 and 24 of the Local Government Regulation 2012: …The cost of carrying out community service obligations, less any revenue received from performing the obligations must be treated as revenue for the significant business activity. {Section 23} (and) …A community service obligation is an obligation the local government imposes on a business entity to do something that is not in the commercial interests of the business entity to do. GCWW was formed on 1 July 2016, which included the Catchment Management Unit. This activity protects human health in recreational waters by monitoring the state of the city’s water environments and providing rapid reporting of the health status of primary contact recreation areas. It supports the maintenance of legislated environmental values in the city’s water environments through catchment and stormwater planning and implementation of appropriate environmental restoration actions. These activities are funded by way of a Community Service Obligation (CSO). The total value of this CSO is currently $4.62 million. No changes are proposed to this CSO value as a result of this review.



5.6 Capital Investment Program Expenditure 5.6.1 Overview of Capital Investment Program The 2016-17 initial approved capital investment program included works totalling $71.95 million. An increase of $2.88 million was approved in the September budget review, resulting in a capital investment program budget of $74.84 million. A reduction of $0.27 million is proposed following the December budget review, resulting in a capital investment program budget of $74.56 million. Table 8 (below) provides a summary of capital expenditure across the program.

Table 8 – Capital Expenditure `

Table 9 (below) provides a high level breakdown of the movement in the program.

Table 9 - Movement in capital program from the September review

Mvt ($) Mvt (%)

Sewerage 58.52 58.84 60.83 (0.32) (1%)

Water 12.01 11.49 7.44 0.52 5%

Noncore Water 3.06 3.78 3.62 (0.72) -19%

Recycled Water 0.64 0.64 0.00 0.00 0%

Corporate 0.34 0.09 0.07 0.25 276%

Total Capital Expenses 74.56 74.84 71.95 (0.27) 0%

Sept 16 Review

($m)

2016-17 Initial($m) September v Initial

Gold Coast Water and Waste Water and Sewerage Services Capital Program

ProductDec 16 Review

($m)

Budget DecreasesMovement

($M)% of total

Movement

Works deferred to future years (0.81) 38%

Project no longer required (0.60) 28%

Revised project estimate (0.42) 20%

Project complete (0.19) 9%

Contract sum lower than project estimate (0.12) 6%

Total Decreases (2.14) 100%

Budget Increases

Scope addition 0.81 44%

Brought forward from future years 0.50 27%

New project 0.47 25%

Works carried over from previous financial year 0.07 3%

Contract sum higher than project estimate 0.02 1%

Total Increases 1.86 100%

Net Movement (0.27)


ITEM 4 (Continued) WATER AND SEWERAGE SERVICES - DECEMBER 2016 BUDGET REVIEW FN334/252/17(P6) 5.6.2 Capital Investment Program Movements Table 10 provides an update of the capital projects with an initial budget greater than $1 million. These projects represent 68% of the total revised capital investment program.

Table 10 - Movement in projects with initial budget greater than $1 million

The main budget decreases proposed in the program are:

1. $0.50 million decrease in Unidentified Trunk Sewer Infrastructure: Budget

decrease as no trunk sewer infrastructure has been identified in 2016-17.

2. $0.40 million decrease in Elanora Sewer Treatment Plant Digester A and Sludge Heater Refurbishment: Budget decrease as some construction works identified for delivery in 2016-17 will be deferred to 2017-18 with the project remaining scheduled for completion by 30 June 2018.

3. $0.35 million decrease in Small Water Meters 50mm or less: Budget decrease as

a result of changes to developer contributed asset requirements. This has significantly reduced the expected expenditure in the project. A corresponding reduction to revenue received for these works has been identified within Capital Revenues.

4. $0.25 million decrease in Water Loss Management – Establishment of New

District Metered Areas (DMA’s): Budget decrease due to a combination of ongoing investigation to revise DMA locations and contractual requirements resulting in a deferral of works to future years.

Top Capital Projects (as presented in Initial Budget)Dec

Review($m)

Sep Review

($m)

2016-17 Initial($m)

Movement($m)

Movement(%)

Merrimac West Sewer Augmentation 11.50 11.50 13.90 0.00 -

CWG WFM Duplication to Coombabah STP 5.55 5.55 7.53 0.00 -

SPS Mech Elec Major Renewals 2016-18 4.30 4.30 4.80 0.00 -

SPS Emergency Storage Augmentations 3.50 3.50 4.36 0.00 -

Gravity Main Asset Renewals Program 2016-17 4.00 4.00 4.00 0.00 -

Long Term Recycled Water Release 3.00 3.00 3.94 0.00 -

Cbah STP Screening Grit Removal Up 14-16 3.35 3.35 3.15 0.00 -

STP Process Tank Refurbishment 2013-16 2.90 2.90 2.90 0.00 -

Water Meter Replacements 2016-17 2.68 2.68 2.02 0.00 -

Fall from Heights Prevention SPS 1.95 1.85 1.77 0.11 6%

CWG Sewer Network Renewals 1.55 1.10 1.60 0.45 28%

Water Main Replacements 2016-17 1.46 1.46 1.54 0.00 -

Reservoir Priority Roof 1.80 1.80 1.36 0.00 -

Elanora STP Digester A and Sludge Heater Refurb 0.40 0.80 1.15 (0.40) (35%)

Sewer Maintenance Hole Rehabilitation 2016-17 0.33 0.45 1.07 (0.12) (11%)

Water Loss Management - Establishment of New District Metered Area's 0.25 0.50 1.00 (0.25) (25%)

Tallebudgera Connection Road Water Main 1.05 1.05 0.96 0.00 -

STP Mech Elec Renewals 2016-17 0.95 0.95 0.95 0.00 -

50.52 50.73 58.00 (0.22) (0%)



The main budget increases proposed in the program are:

1. $0.45 million increase in Commonwealth Games Sewer Gravity Main Relines: Budget increase as reline works identified for delivery in 2017-18 have been brought forward for delivery in 2016-17 due to an accelerated condition assessment program leading to the early identification of scope.

2. $0.25 million increase in Product Monitoring Scientific Services: Budget increase

for the purchase of a new spectrophotometer used to measure metals in water as per the Australian Drinking Water Guidelines.

3. $0.25 million increase in Hydrant Replacements 2016-17: New project identified to begin delivery in 2016-17. A program for prioritised hydrant and associated valve replacement as identified from the condition assessment program of the City’s hydrant fleet.

Refer to Attachment 2 for a detailed listing of all budget movements within the water and sewerage services capital program following the December 2016 budget review. Table 11 provides a breakdown of the revised program by delivery phase. As at the time of the December budget review, 76% of the total value of the program is in the Delivery phase, with 19% of the program in Specification and Procurement phases. The majority of the program is scoped and in procurement or delivery phase, indicating a high likelihood that the program for 2016-17 will be delivered.

Table 11 – Breakdown of capital program by delivery phase

Initiation 1.68 5.64 2.52 10.00 2%

Planning 1.31 3.10 3.40 5.00 2%

Specification 5.75 10.55 12.39 6.00 8%

Procurement 8.05 10.56 9.72 10.00 11%

Delivery 56.59 44.00 43.62 50.00 76%

Close 1.18 1.00 0.20 16.00 2%

Total 74.56 74.85 71.85 97.00 100%

Gold Coast Water and Sewerage Services Capital Program

Delivery PhaseDec 16 Review

($m)

Sept 16 Review

($m)

2016-17 Initial

($m)

No of Projects

% of Program

Value


ITEM 4 (Continued) WATER AND SEWERAGE SERVICES - DECEMBER 2016 BUDGET REVIEW FN334/252/17(P6) 5.7 Procurement Savings This treatment of procurement savings aligns with the City’s Budget Review Policy which states (in part):

“Procurement savings sourced from budgets within Council’s significant business activities ….. will be retained within the business activity and transferred to reserves where appropriate.”

Table 12 – Procurement Savings

Relevant budgets have been reduced to reflect the above operational savings. Water and Sewerage Services’ business review process incorporates a total review of all capital works estimates, addressing actual contract costs. Accordingly, identified capital procurement savings are captured through this separate review process, rather than being specifically identified as procurement savings in the capital budget review. Where procurement savings relate to construction contracts that span multiple years, adjustments to capital project budgets will be made in future years’ budgets. Total procurement savings identified for the period of July to November 2016 are $6.99 million, of which $1.49 million are operational savings and have been removed from GCW budgets. This is reflected in Table 12 - Distribution of Earnings. 5.8 Capital Revenue

An increase of $4.6 million in capital revenues has been forecast as part of the December 2016 budget review, as shown in Table 13 (below).

Table 13 - Movement in Capital Revenue

Development activity across the City continues to be very high. For the five months to November 2016, Developer (cash) Contributions of $25.7 million or over 64% of the annual budget have been received. Based on these receipts to date, it is proposed to increase the annual budget by $5.0 million to $45.0 million in this review.

Procurement Savings ($'m)

July Aug Sept Oct Nov Total Removed in September

Removed in December

Total Procurement

Operational 0.32 0.19 0.56 0.31 0.12 1.49 0.51 0.98 1.49 Capital 2.52 0.26 1.58 0.55 0.59 5.50 2.78 2.72 5.50

2.84 0.45 2.13 0.86 0.71 6.99 3.29 3.70 6.99

Recoverable 0.00 0.01 0.00 0.00 0.00 0.03

Where operational procurement savings relate to Private Recoverable Works , these savings are not reflacted in budgetary movements.

Total Capital RevenueDec 16 Review

Sep 16 Review

2016-17 Initial

Dec. vs Sept.

For the period ended 30 June 2017 ($m) ($m) ($m) $ m %Developer Contributions 45.0 40.0 40.0 5.0 12.5Contributions and Donations Received 0.3 0.7 0.5 (0.4) (56.7)Contributed Assets 15.0 15.0 15.0 0.0 0.0

Total Capital Revenue $ 60.3 $ 55.7 $ 55.5 $ 4.6 8.3


ITEM 4 (Continued) WATER AND SEWERAGE SERVICES - DECEMBER 2016 BUDGET REVIEW FN334/252/17(P6) Contribution / Donations Received (Capital) has been decreased by $0.4 million following policy changes regarding the supply and installation of new water connections for customer properties. This work is being increasingly carried out by developers with only remnant installations or smaller developments being performed in-house. The capital budget for small meter connections and associated capital revenue has been decreased by $0.4 million. 5.8.1 Infrastructure Charges Reserves Infrastructure Charges may only be utilised to fund growth-related capital projects. Following the December budget review, Infrastructure Charges Reserves funding for growth-related projects is being reduced by $0.6 million, resulting in a total of $19.3 million drawn from these reserves in the current financial year. This is broken down as follows:

$18.7 million for funding growth-related projects anticipated for delivery this financial year.

$0.6 million for reimbursements to developers for the construction of trunk infrastructure financially recognised in previous financial years.

The reduction is predominantly due to a reduction in the Unidentified Trunk Sewer Infrastructure capital investment program budget. Infrastructure Charges that cannot be utilised in the current year are retained within the City’s Infrastructure Charges Reserves to be utilised for funding of growth-related capital projects in future years. Based on current projections, infrastructure charges reserves are expected to total approximately $137 million at 30 June 2017. 5.8.2 Commonwealth Games Reserve Funding As part of the City’s preparation for hosting the Commonwealth Games in 2018, the Heads of Agreement between the City and the Queensland State Government incorporates a number of water and sewerage infrastructure projects to be undertaken for this major event. Funding for these projects is being made available via a funding transfer from the Commonwealth Games Reserve. As part of the initial budget, it was projected that a total of $8.3 million would be required for water and sewerage projects during 2016-17. This budget was reduced to $6.2 million in the September budget review and remains unchanged. 5.9 Income Tax Equivalents The initial adopted budget projects income tax equivalents payments totalling $38.6 million for the current year. In order to minimise impacts to the City’s overall budget position throughout the year, it was decided that income tax equivalents movements would be held within the water and sewerage services’ accounts until the final budget review of each financial year.


ITEM 4 (Continued) WATER AND SEWERAGE SERVICES - DECEMBER 2016 BUDGET REVIEW FN334/252/17(P6) 5.10 Distribution of Earnings before Interest and Tax (EBIT) Following the adjustments outlined in this report, 2016-17 Earnings before Interest and Tax (EBIT), on a cash basis, is estimated at $228.1 million (operating revenue of $486.5 million, cash capital revenues of $25.8 million less operating expenditure of $284.2 million).

Table 14 – Distribution of Earnings

* SLA, Fleet & Plant and Land Tax payments are further payments to Council which are recorded within GCW’s Operating Expenses and are therefore not reported as part of the Distribution of Earnings.

The net result of this budget review is a decrease of $4.2 million in transfer to water and sewerage infrastructure reserve. 5.11 Water and Sewerage Infrastructure Reserve Cash surpluses from operations are transferred to the Water and Sewerage Infrastructure Reserve. These cash reserves are set aside for future investment in water and sewerage infrastructure. It is anticipated all available reserve funds will be utilised within the next three years, particularly to assist with funding of works associated with the Long Term Recycled Water Release project and an increasing infrastructure renewal program. With the movements processed at this budget review, the reserve balance, as at 30 June 2017 is projected to be in the order of $158 million.

Distribution of EarningsDec 16 Review

Sep 16 Review

2016-17 Initial

Dec. vs Sept.


Interest Expense (External) 3.1 3.1 3.1 0.0 0.0Principal Repayment (External) 4.1 4.1 4.1 0.0 0.0

Debt Service Payment $ 7.2 $ 7.2 $ 7.2 $ 0.0 0.0

Capital Expenditure 74.6 74.8 72.0 (0.3) (0.4)

Capital Expenditure $ 74.6 $ 74.8 $ 72.0 ($ 0.3) (0.4)Interest Returned - Community Investment in GCW

80.4 80.4 80.4 0.0 0.0

Tax Equivalents (30% taxable earnings) 38.6 38.6 38.6 0.0 0.0Contribution to Whole of City projects 0.0 0.0 0.0 0.0 0.0Participation Return 0.0 0.0 0.0 0.0 0.0Interest Expense Margin 0.9 0.9 0.9 0.0 0.0Payments to Council(Excluding SLA, Fleet & Plant and Land Tax)

$ 119.9 $ 119.9 $ 119.9 $ 0.0 0.0

Procurement Savings (operational costs on 1.4 0.5 0.0 0.9 169.5Retained Earnings for future GCW Capital Works Investment

25.2 30.3 39.8 (5.1) (16.9)

Total Transfers to Reserve $ 26.5 $ 30.8 $ 39.8 ($ 4.2) (13.8)

Total Distribution $ 228.1 $ 232.7 $ 238.8 ($ 4.5) (1.9)


ITEM 4 (Continued) WATER AND SEWERAGE SERVICES - DECEMBER 2016 BUDGET REVIEW FN334/252/17(P6) 5.12 Returns to Community In accordance with the City’s GCW Capital Structure and Community Returns Policy, water and sewerage services operate as a commercial business unit and provide an appropriate return to the community, based on the community’s investment in the water and sewerage business. Returns to the community (excluding SLA, Insurance Premiums and Fleet and Plant charges) for the year ended 30 June 2017 remain unchanged from initial budget and are projected to total $121.4 million. A breakdown of those returns is set out in Table 15 below:


6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN Not Applicable. 7 GOLD COAST 2018 COMMONWEALTH GAMES™ IMPACT Not Applicable. 8 FUNDING AND RESOURCING REQUIREMENTS Not Applicable.

Returns to CommunityDec 16 Review

Sep 16 Review

2016-17 Initial

Dec. vs Sept.


Interest Margin Expense 0.9 0.9 0.9 0.0 0.0Shareholder Interest 80.4 80.4 80.4 0.0 0.0Income Tax 38.6 38.6 38.6 0.0 0.0Land Tax 1.5 1.5 1.5 0.0 0.0Participation Return 0.0 0.0 0.0 0.0 0.0Returns to Community(Excl SLA, Insurance Premiums and Fleet & Plant)

$ 121.4 $ 121.4 $ 121.4 $ 0.0 0.0

SLA Costs 19.0 19.9 19.9 (0.9) (4.5)Insurances Premiums 2.0 2.0 2.0 0.0 0.0Fleet & Plant 4.2 4.2 4.2 0.0 0.7

Total Payments to Community $ 146.5 $ 147.4 $ 147.4 ($ 0.9) (0.6)


ITEM 4 (Continued) WATER AND SEWERAGE SERVICES - DECEMBER 2016 BUDGET REVIEW FN334/252/17(P6) 9 RISK MANAGEMENT The following risk assessment applies to this report:

Risk Number Description

Risk No. CO000431

Non-compliance with State and Commonwealth legislation leading to potential prosecution of Council, executive officer liability and negative city image.

Risk No. CO000433

Qualified audit leading to Council’s reputation being damaged.

Risk No. CO000435

Failure to achieve a sustainable long term financial position leading to negative impacts on Council’s ability to deliver on its key focus area commitments.

10 STATUTORY MATTERS Queensland Competition Authority Act 1997 Local Government Regulation 2012 Water Act 2000 Local Government Act 2009 South East Queensland Water (Distribution and Retail Restructuring) Act 2009 South East Queensland Water (Distribution and Retail Restructuring) and Other

Legislation Amendment Bill 2011 11 COUNCIL POLICIES Gold Coast Water Capital Structure and Community Returns Policy Revenue Policy City of Gold Coast Budget Review Policy Water and Sewage Leakage Relief Policy 12 DELEGATIONS Not Applicable. 13 COORDINATION AND CONSULTATION



Is the Stakeholder Satisfied With Content of Report and Recommendations (Yes/No) (comment as appropriate)

Marilyn Hildebrandt (Executive Coordinator Directorate Finances)

Office of the CEO

Yes


ITEM 4 (Continued) WATER AND SEWERAGE SERVICES - DECEMBER 2016 BUDGET REVIEW FN334/252/17(P6) 14 STAKEHOLDER IMPACTS Not Applicable. 15 TIMING Not Applicable. 16 CONCLUSION The City of Gold Coast Budget Review Policy requires that, except for items identified for corporate funding, each Directorate is to submit a balanced quarterly budget review. Budget variations contained in this report comply with this requirement. Following completion of a detailed quarterly review of capital and operating budgets (revenue and expenditure), movements have been recorded across several areas of the business. Budget movements have not required corporate funding. Table 16 below provides a summary of adjustments recorded at this review:

Table 16: Summary of Budget Adjustments – Water & Sewerage Services – December 2016 Budget Review

The net result of this review is that forecast payments (excluding SLA, Insurance Premiums and Fleet and Plant) to the City remain unchanged from the initial budget at $121.4 million.


Summary Income StatementDec 16 Review

Sep 16 Review

2016-17 Initial

Dec. vs Sept.

For the period ended 30 June 2017 ($m) ($m) ($m) $ m %Operating Revenue 486.6 489.9 488.6 (3.4) (0.7)Flow-Dependant Expenditure 178.4 178.4 178.4 0.0 0.0Controllable Expenses 105.9 105.7 102.0 (0.2) (0.2)

Operating Result $ 202.3 $ 205.9 $ 208.3 ($ 3.6) (1.7)Loss on Sale of Assets 5.0 5.0 5.0 0.0 0.0

Net Profit before Capital Items $ 197.3 $ 200.9 $ 203.3 ($ 3.6) (1.8)Capital Revenue 60.3 55.7 55.5 4.6 8.3Depreciation / Amortisation 92.0 92.0 92.0 0.0 0.0

Earnings Before Interest and Taxation $ 165.6 $ 164.6 $ 166.8 $ 1.1 0.6Interest Expense (QTC loan) 3.1 3.1 3.1 0.0 0.0Interest Margin Expense 0.9 0.9 0.9 0.0 0.0Shareholder Interest Expense 80.4 80.4 80.4 0.0 0.0Income Tax Equivalents 38.6 38.6 38.6 0.0 0.0

Net Profit After Taxation $ 42.7 $ 41.6 $ 43.8 $ 1.1 2.5

Capital Expenditure 74.6 74.8 72.0 0.3 0.4

Total Capital Works Program Expendit $ 74.6 $ 74.8 $ 72.0 $ 0.3 0.4

Returns to CommunityDec 16 Review

Sep 16 Review

2016-17 Initial

Dec. vs Sept.


Interest Margin Expense 0.9 0.9 0.9 0.0 0.0Shareholder Interest 80.4 80.4 80.4 0.0 0.0Income Tax 38.6 38.6 38.6 0.0 0.0Land Tax 1.5 1.5 1.5 0.0 0.0Participation Return 0.0 0.0 0.0 0.0 0.0Returns to Community(Excl SLA, Insurance Premiums and Fleet & Plant)

$ 121.4 $ 121.4 $ 121.4 $ 0.0 0.0


ITEM 4 (Continued) WATER AND SEWERAGE SERVICES - DECEMBER 2016 BUDGET REVIEW FN334/252/17(P6) 17 RECOMMENDATION It is recommended that Council resolves as follows: 1 That Council approve the decrease of $4.2 million to be transferred from the Water and

Sewerage Infrastructure Reserve, with total anticipated transfer to Reserve now being $26.5 million for the 2016-17 financial year.

2 That Council note budget variations per Attachments 2 and 3 will be included in the December 2016 Budget Review.


Karen O’Brien Paul Heaton Manager Business Performance Director Gold Coast Water and Waste 9 January 2017

TRACKS REF: #59177710 COMMITTEE RECOMMENDATION B17.0130.004 moved Cr Tozer seconded Cr Taylor 1 That Council approve the decrease of $4.2 million to be transferred from the

Water and Sewerage Infrastructure Reserve, with total anticipated transfer to Reserve now being $26.5 million for the 2016-17 financial year.

2 That Council note budget variations per Attachments 2 and 3 will be included in the December 2016 Budget Review.

CARRIED UNANIMOUSLY



Attachment 1 DETAILED INCOME STATEMENT (ACCRUAL) DECEMBER 2016 BUDGET REVIEW

Water and Sewerage Services

Financial Management Statement

{Accrual} Dec 16 Review

October 16 Actuals

Sep 16 Review

2016-17 Initial

Proposed for Year Ended 30th June 2017 ($'000) ($'000) % ($'000) ($'000) Mvt % MvtOperating RevenueService Charges 235,025 78,350 33% 235,025 235,025 0 0.0%Volumetric Charges 239,060 79,173 33% 242,500 242,500 (3,440) (1.4% )Less: Concealed Leakage (2,000) (899) 45% (2,000) (2,000) 0 0.0%Interest on Outstanding Rates 1,750 553 32% 1,750 1,750 0 0.0%Interest on Investments 7,630 2,544 33% 7,630 6,530 0 0.0%Fees and Charges 5,112 1,657 32% 5,045 4,788 67 1.3%Total Operating Revenue 486,577 161,378 33% 489,950 488,593 (3,373) (0.7%)

Flow-Dependant ExpenditureBulk Water Purchases - billed (86%) 138,980 45,954 33% 138,980 138,980 0 0.0%Bulk Water - unmetered (10.35%) 16,726 5,531 33% 16,726 16,726 0 0.0%Bulk Water - metered, unbilled (3.65%) 5,899 1,950 33% 5,899 5,899 0 0.0%Electricity 9,852 3,363 34% 9,852 9,852 0 0.0%Biosolids Disposal 3,870 1,253 32% 3,870 3,870 0 0.0%Chemicals 3,041 963 32% 3,041 3,041 0 0.0%Total Flow-Dependant Expenditure 178,367 59,014 33% 178,367 178,367 0 0.0%

Operating Revenue net of Flow-Dependant Expenditure

308,210 102,364 33% 311,583 310,226 (3,373) (1.1%)

Controllable ExpensesEmployee Expenses 47,935 15,199 32% 47,672 44,378 (264) (0.6% )Services 19,709 5,515 28% 19,210 19,477 (500) (2.6% )Council Corporate SLAs 18,971 6,624 35% 19,871 19,871 901 4.5%Materials 6,150 1,829 30% 6,098 6,130 (52) (0.8% )Council Fleet and Plant 4,216 1,480 35% 4,189 4,189 (27) (0.7% )Sewage Treatment Charge 3,351 1,107 33% 3,351 3,351 0 0.0%Insurance Premiums 1,975 658 33% 1,975 1,975 0 0.0%Other Expenditure 1,500 506 34% 1,500 1,500 0 0.0%Consultants 1,916 174 9% 1,664 845 (253) (15.2% )Regulatory Expenses 153 0 0% 153 249 0 0.0%Total Controllable Expenses 105,875 33,092 31% 105,680 101,962 (195) (0.2%)Total Operating Expenses 284,241 92,106 32% 284,047 280,329 (195) (0.1%)

Loss on Sale of Assets 5,000 155 3% 5,000 5,000 0 0.0%

Net Profit before Capital Revenue 197,335 69,117 35% 200,903 203,264 (3,568) (1.8%)

Capital RevenueDeveloper Contributions 45,000 19,646 44% 40,000 40,000 5,000 12.5%Contributions and Donations Received 286 35 12% 659 500 (374) (56.7% )Contributed Assets 15,000 7,796 52% 15,000 15,000 0 0.0%Total Capital Revenue 60,286 27,477 46% 55,659 55,500 4,627 8.3%

Depreciation 92,000 31,022 34% 92,000 92,000 0 0.0%

EBIT 165,621 65,572 40% 164,562 166,764 1,059 0.6%Interest Expense (QTC loan) 3,065 1,022 33% 3,065 3,065 0 0.0%Interest Margin Expense 881 294 33% 881 881 0 0.0%Shareholder Interest Expense 80,374 26,791 33% 80,374 80,374 0 0.0%Income Tax Equivalents 38,605 11,817 31% 38,605 38,605 0 0.0%NPAT 42,696 25,648 60% 41,637 43,838 1,059 2.5%

Contribution - Whole of City projects 0 0 0% 0 0 0 0.0%Participation Return 0 0 0% 0 0 0 0.0%

Retained Earnings 42,696 25,648 60% 41,637 43,838 1,059 2.5%

Movement Dec v Sep



Attachment 1 DETAILED INCOME STATEMENT (CASH) DECEMBER 2016 BUDGET REVIEW

Water and Sewerage ServicesFinancial Management Statement

{Cash} Dec 16 Review

Sep 16 Review

2016-17 Initial

Proposed for Year Ended 30th June 2017 ($'000's) ($'000's) ($'000's) ($'000's) % MvtOperating RevenueService Charges 235,025 235,025 235,025 0 0.0Volumetric Charges 239,060 242,500 242,500 (3,440) (1.4)Less: Concealed Leakage (2,000) (2,000) (2,000) 0 0.0Interest on Outstanding Rates 1,750 1,750 1,750 0 0.0Interest on Investments 7,630 7,630 6,530 0 0.0Other Operating Income 5,112 5,045 4,788 67 1.3Total Operating Revenue 486,577 489,950 488,593 (3,373) (0.7)

Flow-Dependant ExpenditureBulk Water Purchase 161,605 161,605 161,605 0 0.0Electricity 9,852 9,852 9,852 0 0.0Biosolids Disposal 3,870 3,870 3,870 0 0.0Chemicals 3,041 3,041 3,041 0 0.0Total Flow-Dependant Expenditure 178,367 178,367 178,367 0 0.0

Operating Revenue net of Flow-Dependant Expenditure 308,210 311,583 310,226 (3,373) (1.1)

Controllable ExpensesEmployee Expenses 47,935 47,672 44,378 264 0.6Services 19,709 19,210 19,477 500 2.6Council Corporate SLAs 18,971 19,871 19,871 (901) (4.5)Materials 6,150 6,098 6,130 52 0.8Council Fleet and Plant 4,216 4,189 4,189 27 0.7Sewage Treatment Charge 3,351 3,351 3,351 0 0.0Insurance Premiums 1,975 1,975 1,975 0 0.0Other Expenditure 1,500 1,500 1,500 0 0.0Consultants 1,916 1,664 845 253 15.2Regulatory Expenses 153 153 249 0 0.0Total Controllable Expenses 105,875 105,680 101,962 195 0.2Total Operating Expenses 284,241 284,047 280,329 195 0.1

Loss on Sale of Assets 0 0 0 0 0.0

Net Profit before Capital Revenue 202,335 205,903 208,264 (3,568) (1.7)

Capital RevenueDeveloper Contributions Funding 19,296 19,851 21,736 (555) (2.8)Contribution / Donations Received (Capital) 286 659 500 (374) (56.7)Reserve Funding 6,227 6,240 8,269 (13) (0.2)Total Capital Revenue 25,809 26,750 30,505 (942) (3.5)

Depreciation / Amortisation 0.0 0 0 0 0.0

EBIT 228,144 232,653 238,768 (4,509) (1.9)Interest Expense (QTC loan) 3,065 3,065 3,065 0 0.0Interest Margin Expense 881 881 881 0 0.0Shareholder Interest Expense 80,374 80,374 80,374 0 0.0Income Tax Equivalents 38,605 38,605 38,605 0 0.0NPAT 105,219 109,728 115,843 (4,509) (4.1)

Contribution - Whole of City projects 0 0 0 0 0.0Participation Return 0 0 0 0 0.0Debt Redemption 4,131 4,131 4,131 0 0.0Capital Expenditure 74,562 74,835 71,952 (273) (0.4)

Transfer to Reserves 26,526 30,762 39,760 (4,236) (13.8)

Movement Dec v Sep



Attachment 2 GOLD COAST WATER – DECEMBER 2016 BUDGET REVIEW – BUDGET CENTRE MOVEMENTS

Budget Centre Description

2016-17 December


2016-17 December

Review Non-Recurrent Movement

2016-17 December

Review Total Movement


GW2020C001 - AS-Water-Capital Works 0 128,500 128,500 10,449,500

GW2020C002 - AS-Sewer-Capital Works 0 189,700 189,700 33,950,300

GW2020C003 - AS-Recycled Water-Capital Works 0 200,000 200,000 1,435,000

GW2020C005 - AS-Non Core Water-Capital Works 0 (100,000) (100,000) 2,780,000

GW2020C007 - AS-Non Regulated Water Services-Capital 0 250,000 250,000 70,000

GW2020O001 - AS-Water-Operating 0 77,529 77,529 952,615

GW2020O002 - AS-Sewer-Operating 0 (233,677) (233,677) 1,391,666

GW2020O004 - AS-Recycled Water-Operating 0 0 0 (1,500)

GW2110D001 - CP-Debt Servicing 0 0 0 8,077,552

GW2110I001 - CP-SLA Org Services to GCW (900,620) 0 (900,620) 16,923,000

GW2110I002 - CP-SLA City Governance to GCW 0 0 0 2,535,000

GW2110I003 - CP-Competitive Neutrality Tax 0 0 0 40,105,066

GW2110I004 - CP-Dividend/ROE to Council 0 0 0 80,373,726

GW2110I005 - CP-SLA PET to GCW 0 0 0 413,175

GW2110O001 - BP-Water-Operating (7,793) (1,003,413) (1,011,206) (92,849,609)

GW2110O002 - BP-Sewerage-Operating 14,365 832,186 846,551 (186,676,787)

GW2110O004 - CP-Recycled Water-Operating 0 0 0 (740,000)

GW2140O001 - DS-Unallocated Water Services-Operating (10,863) (12,975) (23,838) 1,140,488

GW2140O002 - DS-Unallocated Sewer Services-Operating 11,124 (26,973) (15,849) 2,157,294

GW2250O001 - DO - Quality, Safety & Environ (Water) 0 0 0 346,095

GW2250O002 - DO - Quality, Safety & Environ (Sewer) 0 0 0 714,845

GW2030O001 - NR-Water-Operating 0 (22,943) (22,943) 2,096,512

GW2030O002 - NR-Sewer-Operating 0 (31,836) (31,836) 3,002,723

GW2030O004 - NR-Trade Waste-Operating 0 (15,333) (15,333) 81,933

GW2040O001 - NC-Water-Operating 0 0 0 217,000

GW2040O002 - NC-Sewer-Operating 0 0 0 (10,000)

GW2200O001 - NM-Water-Operating 234,742 (314,599) (79,857) 11,199,015

GW2200O002 - NM-Sewer-Operating 151,329 (338,441) (187,112) 7,781,853

GW2200O003 - NM-Recycled Water-Operating 8,379 (13) 8,366 421,049

GW2200O004 - NM-Unallocated Water Services-Operating 161,185 0 161,185 430,469

GW2200O005 - NM-Unallocated Sewer Services-Operating 253,686 0 253,686 611,166

GW2050O001 - Mmac STP-Sewer-Operating 0 (121) (121) 5,676,231

GW2060O001 - Elanora STP-Sewer-Operating 0 0 0 3,214,102

GW2070O001 - Cmbbah STP-Sewer-Operating 0 (6,700) (6,700) 9,049,478

GW2080O001 - Pimpama STP-Sewer-Operating 0 0 0 2,615,987

GW2090O001 - Pmpa RWTP-Recycled Water-Operating 0 0 0 78,055

GW2100O001 - Wkshp-Unallocated Water Services - Ops 0 (103) (103) 693,720

GW2100O002 - Wkshp - Sewer - Operating 0 0 0 1,201,089

GW2150O001 - WPS-Water-Operating 0 (25) (25) 853,219

GW2160O001 - SPS-Sewer-Operating (434,599) (32,256) (466,855) 6,425,890

GW2170O001 - Rsvr-Water-Operating 0 (30) (30) 333,177

GW2190O001 - NO-Water-Operating (254,066) (30) (254,096) 3,437,650

GW2190O002 - NO-Sewer-Operating (127,489) 19,755 (107,734) 7,016,253

GW2210O001 - PMQ-Water-Operating 0 0 0 450,460

GW2210O002 - PMQ-Sewer-Operating 0 0 0 428,228

GW2210O003 - PMQ-Recycled Water-Operating 0 0 0 448,132



Attachment 2

GOLD COAST WATER – DECEMBER 2016 BUDGET REVIEW – BUDGET CENTRE MOVEMENTS

Budget Centre Description

2016-17 December


2016-17 December

Review Non-Recurrent Movement

2016-17 December

Review Total Movement


CS4810C001 - Catchment Management - Capital 0 0 0 1,397,559

CS4810O003 - Catchment Management - Operations 0 0 0 2,859,553

CS4810O004 - Cost Centre Plant Overhead 0 0 0 90,630

CS4810O005 - External Training Overhead 0 0 0 11,200

GW2000O001 - SS-Water-Operating 0 0 0 109,243

GW2000O002 - SS-Wastewater-Operating 0 0 0 194,177

GW2270O001 - IWP - Water - Operating 0 57,900 57,900 2,089,678

GW2280O001 - AIP - Water - Operating 0 (891) (891) 625,399

GW2280O002 - AIP - Sewer - Operating 0 (1,584) (1,584) 1,243,062

GW2290O001 - SCP - Sewer - Operating 0 322,945 322,945 2,479,562

GW4810I001 - SLA – CMU to Corporate 0 0 0 (4,358,942)

GW2220O001 - CM - Customer Management (Water) 0 9,843 9,843 707,111

GW2220O002 - CM - Customer Management (Sewer) 0 17,574 17,574 1,241,685

GW2230O001 - OS - Customer Connections (Water) 939,620 (7,206) 932,414 (832,563)

GW2230O002 - OS - Customer Connections (Sewer) 0 12,742 12,742 362,622

GW2240O005 - OS - Scientific Services 0 (8,525) (8,525) 479,207

TOTAL 39,000 (39,000) 0 0



Attachment 3

GOLD COAST WATER AND SEWER SERVICES – CAPTIAL MOVEMENT SCHEDULE DECEMBER 2016 BUDGET REVIEW


INITIAL BUDGETQ1 FORECAST Q2 FORECAST VARIANCE ($)

70395 ZO61 Currumbin Water Supply District Upgrade - 115,000 130,000 15,000

71213 Pimpama Water Supply Switch 600,000 800,000 1,000,000 200,000

71221 Broadbeach Water Main Reline (GCLR) - 250,000 330,000 80,000

71230 Tallebudgera Connection Road Water Main 960,000 1,050,000 1,050,000 0

71242 Water Main Replacements 2015-16 - 115,000 30,000 (85,000)

71260 Water Minor Civil Works 2015-16 - 70,000 120,000 50,000

71263 Unidentified Trunk Water Infrastructure 100,000 100,000 50,000 (50,000)

71268 Southport Burleigh Road Opportunistic Water Main Replacements 310,000 75,000 75,000 0

71282 Water Main Replacements 2016-17 1,540,000 1,463,000 1,463,000 0

71283 Water Minor Civil Works 2016-17 300,000 300,000 500,000 200,000

71304 Potable Water Filling Station Strategy 334,000 265,000 100,000 (165,000)

71308 Water Asset Conflicts - 500,000 493,000 (7,000)

71315 Binstead Way Water Main (GW080) - 480,000 477,500 (2,500)

71316 Minor Equipment Replacements Water Network 100,000 100,000 0

71318 Boyd St Water Main Relocation - 66,500 66,500 0

71325 Molendinar to Southport 965mm Water Main Valve Replacements - - 50,000 50,000

71326 Hydrant Replacements 2016-17 - - 250,000 250,000

70471 Meter Connections - - - 0

72001 Small Water Meters 50mm or less 465,000 465,000 120,000 (345,000)

72002 Recycled Water Meters 35,000 35,000 6,500 (28,500)

71284 Proactive Water Service Replacements 2016-17 690,000 690,000 690,000 0

71299 Water Meter Replacements 2016-17 2,020,000 2,680,000 2,680,000 0

71305 Advanced Metering Infrastructure (AMI) Pilot 100,000 100,000 - (100,000)

71301 Water Loss Management - Establishment of New District Metered Area's 1,000,000 500,000 250,000 (250,000)

71311 Supply, install and provide service for Water Quality Analysers - 450,000 450,000 0

71156 Fall from Heights Prevention WPS 222,000 240,000 240,000 0

71286 Water Pump Station Civil Renewals 2016-17 250,000 250,000 250,000 0

71287 Reservoir Upgrade Program 2016-17 200,000 900,000 900,000 0

71303 Reservoir Priority Roof 1,360,000 1,800,000 1,800,000 0

71312 Mudgeeraba Flow Control Upgrade 2016-17 - 39,000 39,000 0

71250 RTU Replacement Program 100,000 11,000 10,200 (800)

71256 Italo and SP Golf Club Recycled Water Main - 635,000 635,000 0

70425 Merrimac West Sewer Augmentation 13,900,000 11,500,000 11,500,000 0

70456 Pimpama to Coombabah STP Release Main - 400,000 400,000 0

71197 Benowa A102 Sewer Rising Main 500,000 400,000 400,000 0

71201 Stage 21 Vacuum Sewer Augmentation - 115,000 115,000 0

71225 SPS MU20 & Gravity Sewer Mudgeeraba Road 230,000 160,000 180,000 20,000

71232 Coomera Urban Village Trunk Sewer - 2,000 4,000 2,000

71252 Sewer Main Renewals Program 2015-16 - 700,000 570,000 (130,000)

71259 Sewer Minor Civil Works Program 2015-16 - 150,000 150,000 0

71264 Unidentified Trunk Sewer Infrastructure 500,000 500,000 - (500,000)

71269 Stapylton Gravity Sewer Diversion SPS DA03 and DA05 624,000 510,000 527,000 17,000

71273 Abraham Park Gravity Sewer Conflict 2015-16 - 18,500 19,000 500

71279 House Connection Reline Program 2015-16 60,000 60,000 75,000 15,000

71281 Andrews St Southport 150mm Gravity Sewer - 2,000 2,000 0

71288 Sewer Maintenance Hole Rehabilitation 2016-17 1,072,000 445,000 325,000 (120,000)

71290 Gravity Main Asset Renewals Program 2016-17 3,940,000 3,000,000 3,000,000 0

71291 Sewer Minor Civil Works 2016-17 900,000 900,000 900,000 0

71292 Sewer Vacuum Mains Upgrades 2016-17 100,000 - - 0



Attachment 3

GOLD COAST WATER AND SEWER SERVICES – CAPTIAL MOVEMENT SCHEDULE DECEMBER 2016 BUDGET REVIEW


INITIAL BUDGETQ1 FORECAST Q2 FORECAST VARIANCE ($)

71302 UAS Reline Rectification Program 2016-17 - 113,000 48,000 (65,000)

71309 UAS Gravity Sewer Reline Rectification - 1,200,000 1,200,000 0

71313 GC Airport SRM Installation - 68,000 99,000 31,000

71317 Sewer Rectification Works for Light Rail Early Works South - 225,000 225,000 0

71320 Sewer Asset Conflict 2016-17 - 250,000 120,000 (130,000)

71321 Sewer Condition Assessments Equipment Purchase - 100,000 110,000 10,000

71319 Boyd St Sewer Main Relocation - 79,500 79,500 0

71323 Lather and Queen Street Southport Sewer Main - 10,000 10,000 0

71155 Fall from Heights Prevention SPS 1,765,000 1,845,000 1,950,000 105,000

71184 SPS Switchboard Replace Program - 2,000 2,000 0

71254 SPS Mech Elec Project 2015-16 - 86,000 87,500 1,500

71270 SPS Emergency Storage Augmentations 4,363,500 3,500,000 3,500,000 0

71276 Pimpama SPS & Rising Main Augmentation 40,000 160,000 200,000 40,000

71277 OX33 Vacuum Sewage Access Pits Upgrade 646,000 175,000 175,000 0

71293 Sewerage Pumping Station Civil Renewals Project 2016-17 800,000 800,000 800,000 0

71294 SPS Mech Elec Major Renewals 2016-18 4,804,000 4,300,000 4,300,000 0

71295 SPS Mech Elec Minor Renewals 2016-17 850,000 850,000 850,000 0

71307 Upgrade SPS Operating Volumes Merrimac West (GW142) 49,500 - - 0

71310 SPS A5 Emergency Storage Upgrade 2016-18 - 930,300 930,300 0

71322 Pimpama Village Regional SPS and Rising Main - 10,000 10,000 0

71324 Upgrade SPS Emergency Storage Elanora (GW156) - 148,400 148,400 0

71328 A45 Sewerage Pump Station Switchboard Replacement - - 100,000 100,000

71327 CO13 Coomera Marine Precinct Vacuum Pump Station Upgrade 120,000 120,000

71083 STP Process Tank Refurbishment 2013-16 2,900,000 2,900,000 2,900,000 0

71091 Coombabah Bioreactor G Airline Replacement - 25,000 5,000 (20,000)

71094 STP Switchboard Replacement 810,000 1,200,000 1,200,000 0

71202 Merrimac Blower Replacement 150,000 5,000 5,000 0

71220 Coombabah STP Screening Grit Removal Up 14-16 3,148,000 3,350,000 3,350,000 0

71249 STP Mech Elec Upgrade Program - 116,000 116,000 0

71272 Coombabah STP Recycled Water Pump Replacement - 300,000 300,000 0

71278 Curtailable Load - GCW Generators 16,750 100,000 100,000 0

71296 STP Civil Renewals 2016-17 850,000 850,000 850,000 0

71297 Elanora STP Digester A and Sludge Heater Refurb 1,150,000 800,000 400,000 (400,000)

71298 STP Mech Elec Renewals 2016-17 950,000 950,000 950,000 0

70443 Long Term Recycled Water Release 4,000,000 4,000,000 4,000,000 0

70444 Stapylton Sewerage Catchment Augment 360,000 600,000 600,000 0

71109 Product Monitoring - Scientific Services 70,000 70,000 320,000 250,000

71191 GC Infrastructure Protection Sewage 2014-17 850,000 850,000 850,000 0

71192 GC Infrastructure Protection Water 2014-17 100,000 100,000 100,000 0

71238 Power Factor Correction - 20,000 18,500 (1,500)

71154 CWG WFM Duplication to Coombabah STP 7,529,000 5,550,000 5,550,000 0

71170 CWG Pump Station Rising Main Augmentation Carrara Precinct 550,000 500,000 500,000 0

71172 CWG Sewerage System Augmentation Hockey Centre Keith Hunt Park 30,000 30,000 17,000 (13,000)

71285 CWG Water Network Renewals FY 16-17 470,000 1,270,000 1,258,000 (12,000)

71289 CWG Sewer Gravity Main Relines 1,600,000 1,100,000 1,550,000 450,000

71300 CWG Sewer Maintenance Holes 528,000 1,230,000 1,375,000 145,000

71306 CWG Coomera Sports Park Sewer Upgrade 160,000 160,000 160,000 0

71314 CWG Sewer Rising Main Renewals - 500,000 500,000 0

$ 71,951,750 $ 74,835,200 $ 74,561,900 (273,300)


CLOSED SESSION LOCAL GOVERNMENT ACT 2009 AND SUPPORTING REGULATIONS PROCEDURAL MOTION moved Cr Gates seconded Cr Vorster That the Committee move into Closed Session pursuant to section 275 (1) of the Local Government Regulation 2012, for the consideration of the following item for the reason shown:-

Item Subject Reason

5 December 2016 Budget Review Budget Matter

Prejudicial Matter

CARRIED

The meeting was adjourned at 10.09am The meeting resumed at 10.27am PROCEDURAL MOTION moved Cr Tozer seconded Cr Owen-Jones That the Committee move into Open Session.

CARRIED Following resumption into Open Session, Item 5 was moved and carried as shown on the following page.


ITEM 5 OFFICE OF THE CHIEF EXECUTIVE OFFICER DECEMBER 2016 BUDGET REVIEW FN334/375/18(P1) Attachment 1 – GC2018 Games Program budget Attachment 2 – December 2016 Budget Review 1 BASIS FOR CONFIDENTIALITY 1.1 I recommend that some aspects of this report be considered in Closed Session

pursuant to section 275 (1) of the Local Government Regulation 2012 for the reason that the matter involves

(c) the local government’s budget; or

1.2 I recommend that the report/attachment be deemed non confidential except for those parts deemed by the Chief Executive Officer to remain confidential in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009.

2 EXECUTIVE SUMMARY Not Applicable. 3 PURPOSE OF REPORT In accordance with the Local Government Act 2009 and the Local Government Regulation 2012, Council may amend its budget at any time before the end of the financial year. This report is provided to Council in accordance with the statutory requirements and details budget variations submitted for Council’s consideration and adoption as part of the December 2016 Budget Review. 4 PREVIOUS RESOLUTIONS Not applicable. 5 DISCUSSION This report presents the December 2016 Budget Review and provides Council with an assessment of its current budget position including variations contained in the review. The result of the December 2016 Budget Review is a projected surplus of $150,000 which is proposed to be transferred to the Cultural Precinct Reserve.


ITEM 5 (Continued) DECEMBER 2016 BUDGET REVIEW FN334/375/18(P1) The report is presented in the format below:

Section 5.1 Budget Review Summary

5.2 Proposed Budget Variations

5.3 Commonwealth Games

5.4 Review of Overall Budget Position

5.5 Recurrent Budget Impact – December 2016 Budget Review

5.6 Procurement Savings

5.7 Reserve Balances Review of Overall Budget Position

5.1 Budget Review Summary Major variations included in the December Budget Review are:

Increased Revenue

Investment Income ($2,163,901) Planning & Environment Fees ($2,000,000) Increased Expenditure

Planning & Environment legal expenses ($1,000,000) Lions Head Park Slope Stabilisation ($800,000) Rocket Building lease arrangement ($750,000) Local Government Infrastructure Plan (LGIP) ($1,558,000) Proposed transfer of balance to Cultural Precinct Reserve ($150,000) Please refer to Table 1 for a detailed explanation of the above variations. The proposed Budget Review produces the following net effects on general revenue:

(Fav) / Unfav Gold Coast Water $ Nil Gold Coast Waste Management $ Nil Gold Coast Tourist Parks $ Nil Other Council Activities $ Nil

$ Nil


ITEM 5 (Continued) DECEMBER 2016 BUDGET REVIEW FN334/375/18(P1) Major items affecting the bottom line result for the December 2016 Budget Review include:

Table 1: December 2016 Budget Review Major Variations Revenue $

() = Fav

Expenditure $

() = Fav

Revenue or Savings Variations

Investment & Other Interest Income

A review of the interest from Investment Income has projected a net increase of $2,163,901.

CC1000109 Investment and Other Interest Income - the gross increase of $2,680,901 is projected. The Revised Budget was based on an average cash balance of $850 million at an average interest rate of 2.6%. The average cash balance to date has been $925 million, with the high balances still being driven by the amount of cash held in reserve. It is likely that the current year to day average balance will be indicative of the full year average cash balance, so this figure has been used to recalculate the investment income budget. The average earnings rate has also remained above projections and is currently 2.7%. Investing $925 million at 2.7% provides estimated investment revenue of $24,975,000.

CC1002936 - Interest on Waste Management Reserve - The increase in gross interest is offset by an allocation of $517,000 to Waste Management Reserve after it was agreed that interest would be applied to the Waste Management Reserve in line with the approach for the Water and Sewerage Reserve.

(2,163,901)

Planning & Environment – Revenue

High levels of development activity are continuing across the City. Whilst activity levels are not as high as this time last financial year, a total increase of $2.0 million in revenue from Fees and Charges has been projected as part of this review as follows: Planning Assessment MCU & ROL - increase from $10.9 million to $11.6 million Plumbing & Drainage - increase from $8.7 million to $9.3 million Contrib. Assets & Development Compliance - increase from $3.9 million to $4.4 million Operational Works - increase from $1.3 million to $1.4 million Road Open/Crossover Fees - increase from $685,000 to $735,000

(700,000)

(650,000)

(500,000)

(100,000)

(50,000)


ITEM 5 (Continued) DECEMBER 2016 BUDGET REVIEW FN334/375/18(P1)

Table 1: December 2016 Budget Review Major Variations Revenue $

() = Fav

Expenditure $

() = Fav

Expense Variations

Local Government Infrastructure Plan (LGIP)

Expense Increase $1.56 million: The City is legislatively required to have a new LGIP in place by 1 July 2018. A draft LGIP is proposed to be adopted by Council in June 2017 to enable a State interest check and also a community consultation process to be undertaken in order to meet this legislative deadline. Should this deadline not be achieved, the City’s ability to levy infrastructure charges is likely to be adversely impacted.

No additional non-recurrent funding was requested for this project in the 2016-17 initial budget for the Planning and Environment Directorate (noting reprovisions of $983,000 being carried forward from 2015-16) while additional resourcing needs for networks were being evaluated to incorporate the emerging requirements of the compliance review and the evolving landscape of infrastructure planning across the state. An amount of $1,300,878 was provided in the 2016-17 budget for the various networks. The scoping has now been completed and additional funding of $1,558,000 is requested for 2016-17 to complete the initial draft LGIP. Key reasons for the additional funding required are:

Project management resources required to be substantially increased, in terms of both quantity and specialist skills, given the significance and ramifications of the project - $570,000

Compliance review and emerging issues in relation to stormwater resulted in required specialised assistance not anticipated by the network in original budget submissions - $498,000

Compliance review identified differing interpretations of statutory guideline resulting in additional work and effort for parks, transport and stormwater networks (internal and external) - $490,000

Further funding will be required for the 2017-18 financial year to progress the draft LGIP as a City Plan amendment and to commence LGIP major amendment 1.

1,558,000


ITEM 5 (Continued) DECEMBER 2016 BUDGET REVIEW FN334/375/18(P1) Table 1: December 2016 Budget Review Major Variations Revenue

$ () = Fav

Expenditure $

() = Fav Legal Expenses

1,000,000

Lions Head Park Slope Stabilisation Project

The September Budget Review advised that the Lions Head Park Slope Stabilisation Project required approximately $1.3 million, and $500,000 of that amount was allocated in the September Review. Following significant clarification of various matters the tender has now been awarded for the project and the previously advised $800,000 (including contingencies) will be required this financial year to complete the project. This will bring the revised budget this financial year to $4,629,009. The contractor’s revised tender program now has works scheduled for completion in May 2017. This is a positive outcome as the expedited program is approximately $1 million less than the previous 28 week program that spanned 2 financial years. This cost reduction continues the significant costs avoided through reducing the size of the catch fence and adjustments to mesh areas that have reduced the amount of rock anchoring. As previously advised it should be noted that the costs do not include the additional works required behind Santorini by the Sea, within Lions Head Park. To undertake the work Council requires access through Santorini by the Sea and Council is currently taking all reasonable action to gain such access. It is proposed that required funding be considered in the 2017-18 and 2018-19 years (assumed $1.25 million).

800,000

Redacted


ITEM 5 (Continued) DECEMBER 2016 BUDGET REVIEW FN334/375/18(P1) Table 1: December 2016 Budget Review Major Variations Revenue

$ () = Fav

Expenditure $

() = Fav Rocket Building Lease Arrangement

Additional funding of $750,000 ($455,000 increased expenditure and $295,000 reduced revenue) is required to fund the new lease arrangement and a reduction in revenue of $295,000 for a sub-lease that did not eventuate.

The Council has executed a Deed with the Landlord of Rocket Building, effective from 30 November 2016 as follows:

1. A surrender of floors 1-4; 2. Retention by the City of a lease over the 5th floor area only (rental will continue to be paid for the retention of area level 5 and car park at the rate of circa $482,000 per annum until the lease expires in March 2019); and 3. As consideration for the surrender, a one off payment of $1.5 million.

Based on the above arrangement, the expenditure budget is proposed to be increased from $2,214,000 to $2,669,000 in 2016-17. The increase of $455,000 being the difference between the surrender payment and a reduction in lease payments for floors 1-4. It should be noted that under the new lease arrangement, there will be a reduction in total lease payments of $3.6 million from 1 December 2016 (effective date of new lease arrangement) to 20 March 2019 (expiration of the previous lease arrangement). This represents an overall saving of $2.1 million following payment of the surrender fee of $1.5 million.

295,000 455,000

Cultural Precinct Reserve The balance of the December Review is proposed to be transferred to the Cultural Precinct Reserve.

150,000


ITEM 5 (Continued) DECEMBER 2016 BUDGET REVIEW FN334/375/18(P1) Table 2 below provides a summary of the major net movements in the December 2016 Budget Review, by significant activity. Table 2 Budget Review Summary

City of Gold Coast (Other Activities)

Gold Coast Waste

Management

Tourist Parks GCW City of Gold CoastTotal

Table 2: 2016-17 Budget Review Summary

Net (Surplus) / Deficit

$

(Surplus) / Deficit

$

(Surplus) / Deficit

$

(Surplus) / Deficit

$

(Surplus) / Deficit

$

Opening Surplus 2016-17 (149,237,822) (4,321,414) (417,158) (1,822,000) (155,798,394)

Surplus Underpinning the 2016-17 Budget 16,870,012 - - - 16,870,012

2015-16 Reprovisions and EOY Adjustments 132,367,810 4,321,414 417,158 1,822,000 138,928,382

September 2016 Budget ReviewNet Review Items 32,096 - (32,096) - - Changes in Tax Equivalents (32,096) - 32,096 - -

Opening Position - December 2016 Review - - - - -

Proposed Variations

Other Activities

Carrara Indoor Stadium Operational Savings (265,199) (265,199)

Planning & Environmental Legal Expenses 1,000,000 1,000,000

Local Government Infrastructure Plan (LGIP) 1,558,000 1,558,000

Planning & Environmental Fees and Charges (2,000,000) (2,000,000)

Investment Income (2,163,901) (2,163,901)

Lions Head Park Slope Stabilisation 800,000 800,000

Rocket Building lease arrangement 750,000 750,000

Transfer to the Cultural Precinct Reserve 150,000 150,000

Business Unit AdjustmentsNet operating adjustments (3,656,142) - 4,468,236 812,094

Net capital adjustments (505,798) - 655,200 149,402

Net debt service adjustments - - - -

Reduction in SLA charges - - (900,620) (900,620)

Transfer to / (from) Waste Management Reserve 4,161,940 - - 4,161,940

Transfer to / (from) Tourist Parks Reserve - - - -

Transfer to / (from) Water and Sewerage Infrastructure Reserve - - (4,235,816) (4,235,816)Transfer to / (from) Commonwealth Games Reserve - - 13,000 13,000 Increase / (Decrease) in Dividends, CSOs and Tax Equivalents - - - - -

All Other Review Items (Net) 171,100 - - - 171,100

- - - - -

December 2016 Budget Review Totals - - - - -

Proposed Surplus 2016-17 - - - - -



5.2 Proposed Budget Variations In addition to the major items listed in Table 1, Council’s Budget Review Policy requires that significant budget variations be addressed either through standard reports to the Special Budget Committee or via this report, depending upon the circumstances. 5.2.1 In addition to the Major Variations contained in Table 1, Significant Variations are as

follows:

Table 3: December 2016 Budget Review Significant Variations

Revenue $

() = Fav

Expenditure $

() = Fav

City Infrastructure

SWD Catchment Facility Capital Works Recognises 30% upfront payment of Natural Disaster Resilience Program Grant recently approved from the Department of Infrastructure, Local Government and Planning for Drainage works Boyd to Kitchener Street, Tugun. The total approved grant is $2,120,135 which will be claimed progressively in arrears over the 2016-17 and 2017-18 financial years as works are completed.

(636,040)

636,040

Coastal Planning and Operations Recognises 30% upfront payment of Natural Disaster Resilience Program Grant recently approved from the Department of Infrastructure, Local Government and Planning for Narrowneck Reef Renewal. The total approved grant is $738,000 which will be claimed progressively in arrears over the 2016-17 and 2017-18 financial years as works are completed.

(221,400)

221,400

Road Reconstruction Transfer of funds from Commonwealth Games Reserve for Surf Parade to First Avenue, Broadbeach Road Reconstruction works completed this Financial Year.

(175,000) 175,000

Traffic Administration Increase in anticipated revenue for Temporary Road Closures from original estimate of $160,000 to a revised budget of $320,000 as a result of higher than anticipated developer activity.

(160,000)

Roads Infrastructure Transfer of Transport Network Infrastructure Charges for Helensvale Road, Monterey Keys upgrade stage 2.

(279,864)

279,864


ITEM 5 (Continued) DECEMBER 2016 BUDGET REVIEW FN334/375/18(P1) Table 3: December 2016 Budget Review Significant Variations

Revenue $

() = Fav

Expenditure $

() = Fav Travel Behaviour Change Program

$160,000 expense increase required to maintain and rotate 35 City funded Speed Awareness Devices. 14 of these devices need to be installed with 3G capability. These devices are situated in various locations as agreed with Councillors.

Department of Transport and Main Roads (TMR) "Hinterland motorcycle safety campaign" Grant as per signed Grant Agreement $24,000, revenue and expense increase.

Department of Transport and Main Roads (TMR) "Road Safety Guide for Visitors - Gold Coast" Grant as per signed Deed of Agreement $10,000, revenue and expense increase.

(34,000) 194,000

Community Services

Existing Carrara Indoor Stadium Operations

The existing Carrara Indoor Stadium venue was originally planned to be closed for redevelopment from November 2016 but will now be open up until March 2017. The venue has also had an increase in bookings and events with a number of new significant events hosted.

As a result, budget adjustments to both the Stadium and Canteen revenue are required to reflect additional activity. Despite increased activity at the venue, operational expenditure savings against the budget are being forecasted.

(217,500)

(47,699)

Safe & Liveable Communities - Capital

Increase of $380,000 in Commonwealth Games project 31164 CWG Safety Camera Network and corresponding increase of $380,000 in Commonwealth Games reserve funding to align with approved GC2018 cost plan.

(380,000) 380,000

Community Safety Operations

Reduction of $150,000 in Commonwealth Games operational project 31163 CWG Council Asset and Security and associated Commonwealth Games reserve funding in line with current Games funding plan.

150,000 (150,000)



Revenue $

() = Fav

Expenditure $

() = Fav City Libraries Computer Hardware/Software > $10,000

$377,500 for RFID Self-checkout upgrade and Runaway Bay Library RFID automated returns implementation.

An amount of $120,000 has been allocated for hardware and software upgrade of up to 27 customer self-checkout units across the library service. These machines are out of warranty and require upgrading.

An allocation of $250,000 for implementation of a RFID automated returns and 5 bin sorter at Runaway Bay Library. Runaway Bay Library transacted 516,467 check-ins during 2015-16, making it the third busiest receiving library across the service. The staff assisted check-ins at Runaway Bay per FTE was 37,280 as compared to the service wide average of 11,485.

These works are funded by a reallocation of State Government grant funds from the City Library Collection Services budget, approved by the State Government as an appropriate use of grant funds.

377,500

Collection Services Libraries Expenditure Decrease $377,500 - this budget reduction reflects a reallocation of State Library grant funds to the Runaway Bay Library Renewal program for sorter and upgrade to all customer self-serve machines. These works have been approved as an appropriate allocation of grant funds. Expenditure Decrease $25,000 - branch contribution towards implementation of the corporate knowledge management system, Livepro. Funding has been consolidated at a directorate level in budget centre CS4000O004 Directorate Support Unit Operations.

(402,500)



Revenue $

() = Fav

Expenditure $

() = Fav Broadwater Parklands CCTV and Lighting Project The City has been advised that a State Government grant of $614,640 for the installation of lighting and CCTV in the Broadwater Parklands is available. This grant represents a 60% subsidy on the estimated total project cost of $1,024,400. Based on cash flow forecasts the City’s total contribution of $409,760 will likely be required over two financial years. Funding of $30,000 has been committed from the Commonwealth Games budget and $40,000 is allocated from within the Safe and Liveable Communities budget. The remaining $339,760 will be requested in the 2017-18 budget process. The project includes the installation of lighting and CCTV in the Broadwater Parklands southern precinct (including coverage of the pathway connection to the G-Link station through Matron and Sister Higman Park) and the mid-section (Northern Pavilion Building). The project will address concerns raised by Queensland Police regarding lighting and CCTV black spots following numerous incidents over the last 12 months in and around the immediate vicinity of the Broadwater Parklands including the Southport CBD; and it is a key recommendation of a recent safety audit of GC2018 event precincts. This project will dramatically improve the level of surveillance, public safety and reduce the opportunity for crimes to occur and will be critical for patron safety and city reputation during GC2018.

(614,640) 684,640

Economic Development

Commonwealth Games City Operations GC2018 Games Program All GC2018 cost centre and project budget movements are aligned with the GC2018 Games Program budget as approved by Council in June 2016.

(1,392,550) 1,392,550



Revenue $

() = Fav

Expenditure $

() = Fav Distinctly Gold Coast $130,000 net nil variance - clarity on Distinctly Gold Coast funding purpose only The Distinctly Gold Coast budget supports the development of bold, energetic and authentic cultural tourism product that enhances city reputation. In 2016-17 the approved budget reprovision was to deliver a program of digital art including projectors. The project was to be co-funded by State Government through the GC2018 PDIP. As the State Government did not approve its allocation to the project, it is proposed to redirect this funding to stage two of the Hotelling pilot project. Stage one of Hotelling was delivered in partnership with Bleached Arts at QT Hotel in November 2016. The pilot attracted positive national media attention including an audience reach of 756,876 and employed 14 local artists. To continue momentum and establish the Hotelling brand, it is proposed to deliver stage 2 of the pilot in partnership with a new hotel in June 2017. “And that right there is why the future progression of Hotelling as a broad concept could be such a major facelift for Surfer’s Paradise. What we saw at QT Gold Coast is just the beginning of the kind of cultural currency that buys cities a new identity, placing artists as real catalysts of real change.” AuReview 1 December 2016

Nil

Gold Coast Water and Waste

Refuse Tips - Capital Following a review of the Waste Management capital program, reductions totalling in excess of $3.3 million have been made within this budget centre. The major reduction relates to the removal of a $3 million allocation for proposed land acquisition. The subject land was adjacent to the Reedy Creek landfill site and investigations were underway regarding potential strategic benefits of acquiring the land. The land has subsequently been withdrawn from sale.

3,000,000 (3,382,673)



Revenue $

() = Fav

Expenditure $

() = Fav Transfer Stations - Capital Following a review of the Waste Management capital program, reductions totalling just in excess of $1 million have been made within this budget centre. The major reduction relates to planning for a proposed Waste and Recycling Centre at Coomera. Planning and investigations for this proposed facility are ongoing; however the full allocation of $1 million that was provided for this item is not expected to be required in the current year. Further details will be provided within the Waste Management December Budget Review Report. Loan and reserve funding has also been reduced to align with the expenditure reductions.

1,076,282 (1,076,282)

Waste Management – Administration - Legals Revenue Decrease $2,000,000 / Expenditure Decrease ($2,000,000) for costs associated with the Waste Management related legal matter. It is no longer expected this allocation will be required in the current financial year. Accordingly, the $2 million net transfer from reserves has been removed along with the associated expense. This funding may be required in future years.

2,000,000 (2,000,000)

Transfer Stations - Operations Following implementation of changed arrangements for the Reedy Creek salvage operations, both revenue and expense estimates for this function have been amended. This change has a net positive impact of $156,700.

443,300 (600,000)

Landfill Capping and Rehabilitation Optimisation of the capacity of Cell 2 at the Reedy Creek Landfill has enabled the capping program for Cell 1 to be deferred until 2018-19. As a result, a reduction in anticipated expenditure of $593,500 has been identified in this review. These works are funded from the Waste Management Reserve, therefore a corresponding reduction in funding from that reserve has also been identified in this review.

593,500 (593,500)

Redacted



Revenue $

() = Fav

Expenditure $

() = Fav Refuse Tips - Capital An allocation of $615,000 had been provided in the 2016-17 initial budget for new software. This is no longer expected to be required as a capital expenditure; however funding may be required for works associated with the planning and implementation of new systems which is operational in nature. Accordingly, this expenditure has been transferred to the operational budget within Budget Centre GW4740O009. The proposed capital expenditure was to be loan funded. This proposed borrowing has also been removed in this review.

615,000 (615,000)

Waste Management Administration As noted in Budget Centre CS4710C003, an expenditure allocation of $615,000 had been provided in the 2016-17 initial budget for new software. This is no longer expected to be required as a capital expenditure, however funding may be required for works associated with the planning and implementation of new systems which is operational in nature. Accordingly, this expenditure has been transferred to the operational budget within this Budget Centre.

A revenue allocation of $517,000 has been incorporated to reflect interest that would be earned on cash held in the Waste Management Reserve. This investment interest allocation has been implemented for Waste Management Reserve similar to that adopted for Water and Sewerage cash reserves.

(517,000)

615,000

Reserve Transfers - Waste As a result of the budgetary movements recorded in this Budget Review, the value of surplus funds available for transfer to Waste Management Reserves has increased by over $1.4 million.

1,411,373

Redacted



Revenue $

() = Fav

Expenditure $

() = Fav AS-Sewer-Capital Works Following a review of the Water and Sewerage capital program, an overall reduction of $323,300 (0.5%) has been identified for the Sewer Infrastructure program. Further detail surrounding the capital program amendments is provided in the Water and Sewerage Services December Budget Review Report. The decrease in revenue is an adjustment to Infrastructure Charges Reserve funding of $500,000 as a result of the removal of funding for "unidentified trunk sewerage infrastructure" in this review, together with a small decrease in Commonwealth Games Reserve funding requirement of $13,000 for sewerage system augmentation works at Keith Hunt Park.

513,000 (323,300)

AS-Recycled Water-Capital Works As part of the review of the Water and Sewerage capital program, additional requirements were identified to undertake a Risk Assessment and CCTV integrity testing of Class A+ recycled water mains in association with the Pimpama Recycled Water Supply Switch.

200,000

AS-Non Core Water-Capital Works Following a review of this component of the Water and Sewerage capital program, a reduction of $373,500 was identified for the New Water Meter Installation program. This program is funded by customer charges, thus anticipated revenue has also been reduced. These works are now predominantly undertaken by developers and other external contractors, engaged directly by landowners. The remaining expenditure reduction of $100,000 relates to the removal of the capital allocation provided for an Advanced Metering Infrastructure pilot. This pilot has now been incorporated within the Holistic Water Metering contract currently under negotiation, therefore a separate budget allocation is not required.

373,500 (473,500)

AS-Non Regulated Water Services-Capital This increase is required to fund the replacement of a critical item of laboratory equipment (photospectrometer) required for testing operations. Given the age of the existing item, replacement parts are extremely difficult and expensive to procure. As a result, replacement is considered to be the most economically viable option.

250,000



Revenue $

() = Fav

Expenditure $

() = Fav AS-Sewer-Operating A $219,500 decrease in anticipated decommissioning costs has been identified following a complete review of the Sewer Infrastructure capital program for the 2016-17 financial year.

(219,500)

SCP - Sewer - Operating Numerous movements have been identified to operational initiatives within the Sewer Catchment Planning area. The major increases relate to new and additional requirements for: - Odour and Air Quality Assessments $120,000 - Sewer Corrosion and Odour Mitigation work within the Elanora Catchment $135,000 - Sewer Pump Station Contingency and Emergency Response Plans $50,000 - Sewer Corrosion and Odour Management Planning $20,000 - Various other minor operational items $28,000

353,044

BP-Water-Operating Major movements within this budget centre comprise:

Volumetric Water Revenues: an error was made in the Initial Budget related to the allocation for Concealed Leakage remissions. This error is being corrected at this budget review, which results in a decrease of $2.88 million in expected volumetric water revenue.

Expenses of $181,607 have been reduced and transferred from this Budget Centre to provide for business efficiency and process reviews being undertaken across the Directorate. This reduction is offset by an increase of $40,000 provided for above-establishment resourcing engaged to assist with SAP equipment module management.

Net Transfer to Water & Sewerage Reserves (water-related component) has reduced by $3,738,598 as a result of the expense movements recorded in this review.

2,880,000

(3,880,205)



Revenue $

() = Fav

Expenditure $

() = Fav BP-Sewerage-Operating Major movements within this budget centre comprise:

Volumetric Sewer Revenues: an error was made in the Initial Budget related to the allocation for Concealed Leakage remissions. This error is being corrected at this budget review, which results in a decrease of $0.56 million in expected volumetric sewer revenue.

A total increase of $731,500 in funding for operational projects has been identified. This includes $181,607 transferred from BP-Water-Operating. The additional funding requirements relates to business efficiency and process reviews across the Directorate - $500,000, as well as funding for Knowledgement Management Improvement Program - $148,000, Asset Revaluation - $20,000, Tariff Review - $15,000 and Contractor Induction solution - $48,500.

An additional $60,000 has also been provided for above-establishment resourcing engaged to assist with SAP equipment module management.

Transfer to Water & Sewerage Reserve (sewer-related component) has reduced by ($1,043,822) as a result of the movements recorded in this review.

Remaining movements include procurement savings and corresponding reserve transfers and minor changes related to Activity Rates recoveries which have no net impact on GCW&W's budget as they are offset with other movements across the Directorate.

560,000

(252,322)

Office of the CEO

Digital City Program - Capital As noted in the “Commonwealth Games Programs and Budget Review” report to Council on 29 November, it is proposed that $600,000 of program savings be utilised to fund CWG ICT WAN Cabling Project (Project 60022). GC2018 Games Program - All GC2018 cost centre and project budget movements are aligned with the GC2018 Games Program budget as approved by Council in June 2016.

(600,000)

600,000



Revenue $

() = Fav

Expenditure $

() = Fav Digital City Program - Operations Coordinator Devices - Digital City Program.

$155,000 is requested to be transferred recurrently from 'The Bank' to fund a 3 year temporary position until 30 June 2020 - Coordinator Devices - Digital City Program. This position is to provide technical, operational and strategic advice to Council directorates in the planning, operation and management of sensor and devices networks. Specific duties include:

• development of policy and operational parameters • providing technical advice to procurement and contract definitions • providing technical advice to project scoping and options assessment • managing the delivery of sensors and devices • ongoing management of maintenance and other contracts • liaising with departments including the Business Innovation and Technology Services (BITS).

Nil

Organisational Services

As a result of amendments to the Competition and Consumer Act 2010, the amount of the merchant service fee recoverable from consumers must not exceed the cost of acceptance of that card system. In Council’s case, there are 10 card systems acceptable (5 for each of MasterCard and Visa). Previously a merchant could calculate a blended rate to ensure the total costs incurred by all car systems could be applied conditional upon the total amount recovered not exceeding the total costs incurred. Under the most recent amendments, the merchant must calculate this charge at the card system level. In cases where this cannot be achieved, the recoverable cost must not exceed the cost of the lowest card system charges. In view of this amendment, Council’s recoverable merchant service fee rate will reduce from 0.6% to 0.38%. The estimated loss in revenue will be $100,000 for the remainder of the 2016-17 financial year.

100,000



Revenue $

() = Fav

Expenditure $

() = Fav Major Variations outlined in Table 1 (3,868,901) 3,963,000

Other General Review Variations (Including GCW, GCWM and Tourist Parks)

849,013 (1,873,630)

Total 4,156,700 (4,156,700)

Nil - Balanced

5.3 Commonwealth Games The program comprises forty-eight individual projects to be delivered across all Council directorates. The last quarter saw the ongoing detailed planning of projects with tenders released to market for a number of significant projects including design and construction of the Gold Coast Media Centre and “The House”, along with tenders for the Northern Beaches Protection, ICT WAN Infrastructure and CCTV Camera Overlay. The City’s infrastructure projects continue to progress well into the design and construction phases with 14 of 20 rehabilitation and reseal projects complete on key roads. The practical completion certificate was also received for the event space at Kurrawa Park with the venue now in a twelve month warranty period. This quarter also saw the release of the Transport Operations Plan to the public for a consultation period to run to February 2017 and an overall positive review by the Commonwealth Games Federation (CGF) Coordination Commission who completed a six monthly cross partner review in early December. A statement of the current GC2018 Games Program budget is presented in Attachment 1.


ITEM 5 (Continued) DECEMBER 2016 BUDGET REVIEW FN334/375/18(P1) 5.4 Review of Overall Budget Position Table 4 provides a summary of the spending and funding proposals by directorate for the December 2016 Budget Review. Operating revenue has increased by $1.2 million largely due to increased revenue from interest revenue as discussed elsewhere in this report. Operating expenditure budgets have decreased by $0.4 million with Waste Management reductions offset by increases required in the Planning and Environment Directorate. Capital revenues have increased by $6.4 million largely due to increased revenue from Infrastructure Charges contributions. Capital expenditure has decreased by $2.2 million overall which is due largely to a reduction in the Waste Management Capital Program offsetting increases for City Infrastructure and Community Service capital projects. Loans have been reduced by $4.6 million as a result of a review of the Waste Management Capital Program and associated loan funding requirements this financial year. The total favourable net change in revenues and expenditures totalling $5.6 million is offset by net transfers to reserves of $5.6 million. The total projected budget position after the December Budget Review is a surplus of $14 million, which is in line with the end of year review adopted by Council. The $14 million has been previously set aside from the end of year surplus for 2016-17 rates that were prepaid in 2015-16. The expected surplus will be used to offset a general rates budget shortfall due to the amount of rates that were paid early combined with a potential change in the accounting standards on the timing of rates revenue recognition.


ITEM 5 (Continued) DECEMBER 2016 BUDGET REVIEW FN334/375/18(P1) Table 4 Budget Review Summary

Budget Review Summary for 2016-17

2016-17 Budget

Operating Revenue($000s)

Capital Revenue($000s)

Operating Expenses

($000s)

Capital Expenditure

($000s)

Net Debt(incr)/decr

($000s)

Net Reservesincr/(decr)

($000s)

Surplus

($000s)

Balance

($000s)

2016-17 Initial Budget (1,197,674) (98,449) 949,664 312,875 42,051 8,403 (16,870) 0

2015-16 End of Year Position and Reprovisions (268) (3,621) 25,583 83,628 (6,167) 23,810 (138,928) (15,962)

2016-17 September Review (11,637) (7,057) 20,848 8,154 144 (8,490) 0 1,962

Current Revised Budget (1,209,578) (109,127) 996,095 404,658 36,028 23,723 (155,798) (14,000)

2016-17 Proposed December Review

City Infrastructure (432) (838) (56) 1,057 0 (455) 0 (723)

Community Services (293) (840) (304) 2,317 0 (230) 0 650

Waste Management (74) 0 (3,582) (5,074) 4,568 4,162 0 0

Economic Development & Major Projects (9) 0 1,310 (1,045) 0 (200) 0 57

Tourist Parks 0 0 0 0 0 0 0 0

Gold Coast Water 3,373 (4,627) 194 (273) 0 1,332 0 0

Office of the CEO (1,869) 0 (86) 613 0 (450) 0 (1,792)

Organisational Services 100 (20) (372) 223 0 1,392 0 1,324

Planning & Environment (2,000) (50) 2,505 31 0 0 0 485

December Review Total (1,204) (6,374) (392) (2,151) 4,568 5,552 0 0

2016-17 Proposed Revised Budget (1,210,782) (115,500) 995,703 402,507 40,596 29,275 (155,798) (14,000)

Profit and Loss Items Capital Funding Items(Excl Depn and Contributed Assets)


ITEM 5 (Continued) DECEMBER 2016 BUDGET REVIEW FN334/375/18(P1) 5.5 Recurrent Budget Impact – December 2016 Budget Review Council’s budget and subsequent variations are submitted under the status of either recurrent or non-recurrent with the recurrent variations representing the flow on to future years. The table below highlights the net recurrent variance submitted in each quarterly review and the accumulated flow on effects to future years. The major recurrent operating variations submitted in the December 2016 Budget Review are listed below and in total reflect an unfavourable variance of $42,300. Table 5

Summary of Net Recurrent Impact

Summary of Budget Review 2016-17Net Recurrent (Fav)/ Un-fav

$

September Review 2016 1,198,830

December Review 2016 42,300

March Review 2017

Progressive Recurrent Variance 2016-17 1,241,130

Recurrent Items - December 2016 Review(Fav) / Unfav

$Revenue Reduction Merchant Fee Recovery 100,000

All Other Net Recurrent Variations (57,700)

Total 42,300


ITEM 5 (Continued) DECEMBER 2016 BUDGET REVIEW FN334/375/18(P1) 5.6 Procurement Savings A procurement savings target of $5.0 million was incorporated into the 2016-17 budget. The following table identifies the procurement savings of $2,401,737 achieved year to date in 2016-17. The recurrent favourable budget impact is $582,177. Table 6 Procurement Savings Target 2016-17

In addition, savings of $8,296,236 associated with business units and specific funding sources such as Local Area Works (LAW) funds, loans, developer contributions, have not been allocated towards the reduction of the corporate procurement savings target.

2016-17 BudgetRecurrent

$Non-Recurrent

$

Expense (Fav)/Unfav

$Procurement Savings TargetInitial 2016-17 Budget $5,000,000 $5,000,000

Savings AchievedSeptember 2016 Review ($491,793) ($912,847) ($1,404,640)December 2016 Review ($90,384) ($906,713) ($997,097)March 2017 Review $0 $0 $0

Balance Remaining - (Surplus)/Deficit ($582,177) $3,180,440 $2,598,263

Savings identified and not recognised against targetSeptember

2016$

December2016

$

March2017

$

Total

$

Gold Coast Water 3,304,189 3,713,872 - 7,018,061 Waste Management 53,106 37,593 - 90,699 Tourist Parks 44,209 - - 44,209 Other Activities 525,294 617,973 - 1,143,267

3,926,797 4,369,439 - 8,296,236


ITEM 5 (Continued) DECEMBER 2016 BUDGET REVIEW FN334/375/18(P1) The available procurement savings included in the December 2016 Budget Review ($997,097) are detailed in the table below: Table 7 Procurement Savings 2016-17

Contract Description of SavingTotal

$LG314/254/16/097 Supply & Install Eight Basketball Backboards at Runaway Bay Sports Complex $1,616

LG314/254/17/009Christmas Decorations for Indoor Administration Centres & Libraries & Provisional External Decorating $450

LG314/254/17/012 Sheet Piling for Drain Upgrade at Boyd & Kitchener Streets, Tugun $24,679LG314/254/17/013 Rehabilitation Program for Manholes & Valves September 2016 To 30 June 2018 $2,090LG314/254/17/017 Remedial Concrete Bridge Repairs at Sunshine Bridge Number 3 Broadbeach Waters $9,320LG314/254/17/027 Demolition of Softball Clubhouse at Pizzey Park $3,005LG314/254/17/028 Installation af Lighting in Live Trees $9,797LG314/254/17/033 Replacement of DN150 Asbestos Cement Water Main at Hardys Road, Mudgeeraba $5,056LG314/411/11/129T Labour Hire Contract $563,861LG314/411/14/074 Intermittent Hire of Heavy & Minor Plant $79,056LG314/411/16/019 Supply of PPE $19,943LG314/411/17/001 Ibis Management $13,121

LG314/411/17/011Supply & Delivery of Mini Bulk Co2 & Non Industrial Grade Co2 Cyclinders for City of Gold Coast Aquatic Centres $31,118

LG314/411/17/013 Alcohol and Other Drug Testing $32,026LG314/411/17/036 Supply & Delivery Of One Tonne Bulka Bags of Granular Lime & or Gypsum $32,450LG314/621/16/205T ADCP Deployment & Wave Data Analysis for the Palm Beach Shoreline Project $15,990LG314/621/17/035 Audit of Various Sports Field Lighting & Electrical Services Infrastructure $9,941LG314/621/17/059 Corporate Building Asset Survey Report $6,570LG314/621/17/063 Options Report for Repair/ Replacement Of Interlocking Concrete Block Revetment Walls $6,440LG314/621/17/066 Foot Hold Trap Open Innovation Challenge $22,580LG314/621/17/071 Update to Land Development Guidelines $6,310LG314/621/17/073 Planning Act 2016 Alignment $615LG314/621/17/081 Housing Needs Planning Investigation $21,260LG314/690/16/084 Supply & Install Fencing at Helensvale Nerang & Palm Beach Pools $2,060LG314/690/17/001 Pressure Cleaning Footpaths $57,320LG314/690/17/010 Supply & Install Synthetic Turf to Paradise Point Parklands $550LG314/690/17/011 Supply & Install Triangular Hip & Ridge Shade Structure at Helensvale Pool $2,400LG314/690/17/012 Demolition of Structures & Removal of Asbestos Containing Materials at Tugun $2,516LG314/690/17/021 Testing & Design for Road Resurfacing Program Three $14,958

Total $997,097



5.7 Reserve Balances Council maintains a number of cash reserves which hold funds for various purposes. The following table provides the balance of each reserve and the movements contained in the December 2016 Budget Review.

Table 8 Proposed Reserve Transfers and Balances City of Gold Coast – Reserves – 2016-17

RESERVE September 2016 December 2016 Proposed

Review Review Closing BalanceClosing Balance

$Proposed Adj

$30-6-2017

$

Capital Projects ReserveBotanical Gardens Reserve 0 0 0Centre Improvement Program Reserve 0 0 0City Transport Improvement Reserve 0 0 0Commonwealth Games Reserve 59,180,351 200,670 59,381,021Community Facilities & Infrastructure Reserve 0 0 0Cultural Precinct Reserve 13,621,714 150,000 13,771,714Fleet & Plant Renewal and Purchase Reserve 8,556,753 0 8,556,753Hope Island Infrastructure Reserve 0 0 0Local Area Works Reserve 0 0 0Open Space Reserve 1,544,198 0 1,544,198Parks & Recreation Reserve 503,047 0 503,047Property Rationalisation Reserve 4,386,358 0 4,386,358Roadworks Acquisition Reserve 95,000 0 95,000Safety Camera and Communication Network Reserve 349,997 0 349,997Strategic Priorities Reserve 37,567,303 0 37,567,303Tourist Park Reserve 523,599 0 523,599Waste Management Reserve 18,375,285 4,161,940 22,537,225Water and Sewerage Infrastructure Reserve 162,025,229 (4,235,816) 157,789,413

Total Capital Reserves 306,728,834 276,794 307,005,628

Self Insurance ReserveInsurance Liability Reserve 289,110 0 289,110Workers Compensation Reserve 11,137,450 0 11,137,450

Total Insurance Reserves 11,426,560 0 11,426,560Operating ReserveEvents Reserve 725,250 0 725,250Gold Coast Investment Fund Reserve 98,549,552 0 98,549,552Hope Island Channel Reserve 727,427 0 727,427Northern Beaches Sand Nourishment Reserve 0 0 0

Total Operating Reserves 100,002,229 0 100,002,229

Total Capital & Operating Reserves 418,157,623 276,794 418,434,417

Infrastructure Charges ReserveInfrastructure Charges Reserve (forecast balances) 246,410,939 5,275,136 251,686,075

Total Infrastructure Charges Reserve 246,410,939 5,275,136 251,686,075

Total Reserves (Capital/Operating/ICR) 664,568,562 5,551,930 670,120,492

Total Reserves (Excluding ICR)Operating Reserves 111,428,789 0 111,428,789Capital Reserves 306,728,834 276,794 307,005,628

Reserve Transfers (Excluding ICR) 418,157,623 276,794 418,434,417


ITEM 5 (Continued) DECEMBER 2016 BUDGET REVIEW FN334/375/18(P1) Strategic Priorities Reserve The Strategic Priorities Reserve is to fund strategic projects subject to specific determination by Council. The following table identifies the current balances of the Strategic Priorities Reserve. There are no changes to the reserve in the December Budget Review. Table 9 Strategic Priorities Reserve

6 ALIGNMENT TO THE CORPORATE PLAN, CORPORATE STRATEGIES AND

OPERATIONAL PLAN The December 2016 Budget Review will address multiple corporate objectives within Council’s Operational Plan and Corporate Plan including;

Key Focus Area Corporate Governance, Organisational Capability and Customer Contact

Key Focus Area Outcome

Delivering effective corporate governance

7 GOLD COAST 2018 COMMONWEALTH GAMES™ IMPACT The December 2016 Budget Review results in proposed net transfers to the Commonwealth Games Reserve of $200,670 in accordance with movements and funding requirements for the approved GC2018 Game Program budget. 8 FUNDING AND RESOURCING REQUIREMENTS Not Applicable.

Funds Allocated to ProjectsAllocation

2016-17Budget $

Balance Future

Budgets $

Contribution towards Light Rail Stage 2 30,066,234Funding towards Cultural Precinct Bridge & Other Public Access 5,001,069Funding for projects to generate Commonwealth Games related benefits (2,875,000)Funding for National BMX Headquarters and Facilities 1,000,000Funding for Tourism Infrastructure 1,500,000Future Allocations

Total (2,875,000) 37,567,303


ITEM 5 (Continued) DECEMBER 2016 BUDGET REVIEW FN334/375/18(P1) 9 RISK MANAGEMENT The following risk assessment applies to this report:

Risk Number Description

Risk No. CO000431 Non-compliance with State and Commonwealth legislation leading to potential prosecution of Council, executive officer liability and negative city image.

Risk No. CO000433 Qualified audit leading to Council’s reputation being damaged.

Risk No. CO000435 Failure to achieve a sustainable long term financial position leading to negative impacts on Council’s ability to deliver on its key focus area commitments.

10 STATUTORY MATTERS The December 2016 Budget Review report is presented to Council in accordance with the Local Government Act 2009 and Local Government Regulation 2012 with particular reference to the following; Local Government Act 2009

Chapter 4 - Part 3 - Financial Planning and Accountability

Section 101 Statutory Bodies Financial Arrangements Act Applies to Local Governments

Section 102- Financial Sustainability Criteria

Section 103 - Financial Management Systems

Section 104 - Financial Management, Planning and Accountability Documents Local Government Regulation 2012

Chapter 5 – Financial Planning and Accountability

Part 2 - Financial Planning Documents

S169 - Preparation and Content of Budget

S170 - Adoption and amendment of budget

S173 – Unauthorised Spending

Part 4 – Financial Policies

Part 9 – Accounting Records

S203 – Accounting records for funds generally


ITEM 5 (Continued) DECEMBER 2016 BUDGET REVIEW FN334/375/18(P1) 11 COUNCIL POLICIES The December 2016 Budget Review has been conducted in accordance with Council’s Budget Review Policy and Guidelines as adopted by Council 6 May 2014 (Ex Minute G14.0506.035). 12 DELEGATIONS Not Applicable. 13 COORDINATION & CONSULTATION The December 2016 Budget Review has been compiled in consultation with the following: Name and Title of the Stakeholder Consulted


Is the Stakeholder Satisfied With Content of Report and Recommendations (Yes/No) (comment as appropriate)

Mayor City of Gold Coast Yes All Directors City of Gold Coast Yes All Directorate Finance Officers Office of CEO Yes Manager Corporate Finance Office of CEO Yes 14 STAKEHOLDER IMPACTS Not Applicable. 15 TIMING The budget variations contained in the December 2016 Budget Review are effective from the date of the Council resolution expenditure and represent anticipated expenditure and revenue estimates to 30 June 2017. 16 CONCLUSION The December Budget Review results in a surplus of $150,000 which is proposed to be transferred to the Cultural Precinct Reserve. The Review includes funding for a number of key initiatives such as Lions Head Park Slope Stabilisation, partial surrender of the Rocket Building lease and completion of development of the Local Government Infrastructure Plan. It should be noted that previous reviews in 2016-17 (i.e. End of Year Position and September Budget Review) have resulted in the following major transfers to reserves:

Cultural Precinct Reserve - $6,526,000 Strategic Priorities Reserve - $13,905,184 (Light Rail Stage 2 $11,405,184, National

BMX Facilities $1,000,000 and Tourism Infrastructure $1,500,000)


ITEM 5 (Continued) DECEMBER 2016 BUDGET REVIEW FN334/375/18(P1) 17 RECOMMENDATION It is recommended that Council resolves as follows:

1 That the report/attachments be deemed non-confidential except for those parts deemed by the Chief Executive Officer to remain confidential in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009.

2 That Council adopt the December 2016 Budget Review adjustments presented in this report and Attachment 2, resulting in a balanced budget position;

3 That Council approve and adopt the following additional net transfers to reserves totalling $5,551,930:

a $200,670 to the Commonwealth Games Reserve;

b $150,000 to the Cultural Precinct Reserve;

c $4,161,940 to the Waste Management Reserve;

d $4,235,816 from the Water and Sewerage Infrastructure Reserve;

e $5,275,136 to the Infrastructure Charges Reserve.


Joe McCabe Dale Dickson Chief Operating Officer Chief Executive Officer

TRACKS REF: 57694016


ITEM 5 (Continued) DECEMBER 2016 BUDGET REVIEW FN334/375/18(P1) Changed Recommendation COMMITTEE RECOMMENDATION B17.0130.005 moved Cr Tate seconded Cr Owen-Jones 1 That the report/attachments be deemed non-confidential except for those parts

deemed by the Chief Executive Officer to remain confidential in accordance with sections 171 (3) and 200 (5) of the Local Government Act 2009.

2 That Council adopt the December 2016 Budget Review adjustments presented in this report and Attachment 2, resulting in a balanced budget position;

3 That Council approve and adopt the following additional net transfers to reserves totalling $5,551,930:

a $200,670 to the Commonwealth Games Reserve;

b $150,000 to the Cultural Precinct Reserve;

c $4,161,940 to the Waste Management Reserve;

d $4,235,816 from the Water and Sewerage Infrastructure Reserve;

e $5,275,136 to the Infrastructure Charges Reserve.

4 That funding of $1.5m currently allocated in the Strategic Priorities Reserve for Tourism Infrastructure be re-directed to Council’s contribution towards Light Rail Stage 2.

5 a In light of the significant ongoing budget impacts of the rectification works for the State Government owned Lions Head Park, Council commences urgent negotiations with the State Government for compensation and joint funding in relation to Lions Heads Park reserve Slope Stabilisation Project.

b That Council policy is amended or created to require Council to undertake preliminary risk assessments, including geological, of any State lands offered for Council trusteeship.

c That Council review and revise by negotiation existing and future trustee agreements with the State for State lands currently or proposed to be under Council trusteeship to reduce or eliminate future ratepayer financial exposure to such undetected risks.

CARRIED UNANIMOUSLY



Attachment 1: Commonwealth Games

2016-17 Approved Budget

$

YTD Acctuals as at 31/12/2016

$

GC2018 Games Program Budget

01 Commonwealth Games Unit01 Program

01 CWG-Program Office1001300 - CWG Legacy Projects and Research 60,320 8471003484 - CWG Consultancies 484,227 256,7231003485 - CWG Comm Games Unit - Labour 2,995,819 937,7051003488 - CWG Office Support 92,656 15,1881003489 - CWG-Office Set Up & Accommodation Costs 50,000 38,2571003490 - CWG Comm Games Unit - Travel/Accom 20,000 11,3111003491 - CWG Comm Games Unit - Ext Training 10,000 696

Total 01 CWG-Program Office 3,713,022 1,260,726

48 CWG-Foregone Revenue1002743 - CWG Foregone Revenue 70,000 0

Total 48 CWG-Foregone Revenue 70,000 0

Total 01 Program 3,783,022 1,260,726

Total 01 Commonwealth Games Unit 3,783,022 1,260,726

02 Arts and Culture02 Accelerated Sector Dev

02 CWG-Accelerated Sector Dev1003493 - 55195 - CWG Strategy 611,980 238,8891003493 - 55196 - CWG Bleach 1,143,874 600,0001003493 - 55197 - CWG The Farm 255,000 105,0001003493 - 55200 - CWG Accelerate Triennial Grants 199,967 200,0001003493 - 55202 - CWG Programming / Artist Fees - Other 590,921 01003493 - 55237 - CWG Generate Program 240,000 43,138

Total 02 CWG-Accelerated Sector Dev 3,041,742 1,187,028

49 CWG-Gateway Art Structure55243 - CWG PDIP City Gateway Art Structure 1,750,000 57,951

Total 49 CWG-Gateway Art Structure 1,750,000 57,951

Total 02 Accelerated Sector Dev 4,791,742 1,244,979

Total 02 Arts and Culture 4,791,742 1,244,979

03 City Operations03 City Image & Reputation

03 CWG-City Marketing1002426 - CWG City Marketing & Promotion 0 53,8421002426 - 55203 - CWG City Marketing Campaign 1,350,000 16,2021002717 - 55253 - CWG Global Benchmarking 100,000 0

Total 03 CWG-City Marketing 1,450,000 70,044

04 CWG-Gold Coast Media Centre1001841 - CWG City Media Operations 0 6621001841 - 55205 - CWG Media Centre Infrastructure 560,000 2001001841 - 55206 - CWG Media Centre Management & Co-ordinat 1,172,007 55,820

Total 04 CWG-Gold Coast Media Centre 1,732,007 56,682

Total 03 City Image & Reputation 3,182,007 126,727

04 City Services07 CWG-GCW Maintenance and Operations

1002744 - 55210 - CWG GCW Maintenance & Operations 39,000 33,443Total 07 CWG-GCW Maintenance and Operations 39,000 33,443

08 CWG-Parks and Open Space1002735 - 55212 - CWG Mowing & Landscaping 0 1331002735 - 55213 - CWG Parks Asset Replacement Renewal & Re 66,667 16,9371002735 - 55215 - CWG Dune Works Broadbeach Live Site 40,000 33,185

Total 08 CWG-Parks and Open Space 106,667 50,254

09 CWG-Public Domain Cleaning and Maintenance1001317 - CWG CI2760 City Services Labour 129,205 106,796

Total 09 CWG-Public Domain Cleaning and Maintenance 129,205 106,796

10 CWG-Waste Management1002087 - CWG Waste Management Operations 171,760 01002087 - 55223 - CWG Plan & Supervise Waste Management 0 48,6701002087 - 55227 - CWG Waste Management Plan 0 56,010

Total 10 CWG-Waste Management 171,760 104,680

Total 04 City Services 446,632 295,173

Project Description



Attachment 1 (Continued)


$


$

05 Community Readiness11 CWG-Community Readiness

1001411 - 55232 - CWG Community Readiness Resource Managem 1,364,617 196,4421001411 - 55233 - CWG Community Readiness Colateral 786,000 55,3571001411 - 55234 - CWG Community Readiness Digital Platform 48,000 01001411 - 55235 - CWG Community Readiness CRM Tool 53,000 0

Total 11 CWG-Community Readiness 2,251,617 251,799

Total 05 Community Readiness 2,251,617 251,799

06 Community Safety12 CWG-Safety Camera Network

31164 - CWG Safety Camera Network 285,792 21,291Total 12 CWG-Safety Camera Network 285,792 21,291

13 CWG-Council Assets and Security1002430 - 31163 - CWG Council Assets and Security 160,000 3,42931165 - CWG Council Assets and Security 1,050,000 115,472

Total 13 CWG-Council Assets and Security 1,210,000 118,901

15 CWG-Public Domain Community Safety1002432 - CWG Community Safety Program 0 951002432 - 31161 - CWG Public Domain Community Safety 170,000 01002432 - 31162 - CWG Public Domain Community Safe Labour 111,000 50,920

Total 15 CWG-Public Domain Community Safety 281,000 51,015

Total 06 Community Safety 1,776,792 191,207

07 Out of Venue Planning16 CWG-GIS Mapping

1001410 - 55240 - CWG GIS Mapping 92,552 47,547Total 16 CWG-GIS Mapping 92,552 47,547

17 CWG-City Presentation1002099 - CWG Image & Look 187,691 01002099 - 55186 - CWG City Presentation - Lighting/Other 200,000 01002099 - 55187 - CWG City Presentation - Wayfinding 462,513 5631002099 - 55188 - CWG City Presentation - Moveable Furnitu 32,000 01002099 - 55189 - CWG City Presentation - Public Art 250,000 01002099 - 55190 - CWG City Presentation - Banners/Scrim 200,000 01002099 - 55191 - CWG City Presentation - Banner Booking 0 4,121

Total 17 CWG-City Presentation 1,332,204 4,684

19 CWG-Public Domain Improvement Program55156 - CWG Public Domain Improvements 218,030 118,12055164 - CWG Nerang St Mall Streetscaping 1,170,756 9,22555165 - CWG Broadbeach Mall Streetscaping 858,195 87,03055192 - Image & Look Infrastructure - Broadbeach 286,581 30,04855193 - Image & Look Infrastructure - Southport 294,176 26,032

Total 19 CWG-Public Domain Improvement Program 2,827,738 270,455

20 CWG-Precinct Planning1002740 - 55247 - CWG Precinct Planning 346,575 276,331

Total 20 CWG-Precinct Planning 346,575 276,331

21 CWG-Out of Venue Volunteer Program1002727 - 62388 - CWG Volunteer Ambassador Program 972,800 0

Total 21 CWG-Out of Venue Volunteer Program 972,800 0

Total 07 Out of Venue Planning 5,571,869 599,016

08 Regulatory Services22 CWG-Env Health & City Laws

1002068 - GC2018 Approval & Enforcement Planning 0 2,7981002068 - 31171 - CWG Enforcement Co-ord and Dev Officer 111,000 34,1681002068 - 31172 - CWG Accommodation 0 2,7301002069 - GC2018 ICT Hardware 17,700 01002070 - GC2018 Local Law Development 50,000 01002075 - GC2018 Public & Enviro. Enforcement 221,934 0

Total 22 CWG-Env Health & City Laws 400,634 39,697

23 CWG-Health & Reg Approvals1002072 - GC2018 Applications & Approvals 69,990 01002072 - 31148 - CWG Approvals & Enforcement Planning 111,000 27,7751002072 - 31192 - CWGC 2018 Approvals 111,000 50,092

Total 23 CWG-Health & Reg Approvals 291,990 77,867

24 CWG-Lifeguard Services1002073 - CWG Lifeguard Services 0 285

Total 24 CWG-Lifeguard Services 0 285

Total 08 Regulatory Services 692,624 117,848

Project Description





$


$

09 Workforce26 CWG-People & Culture Resources Management

1001798 - 62383 - CWG GC2018 Training modules 65,000 4,7801002082 - 62384 - CWG Rewards & Recognition Program 20,000 1,1641002083 - 62385 - CWG Strategic Workforce Planner (SME) 78,750 01002084 - 62386 - CWG Business Partner (L8) 170,720 62,8491002085 - 62387 - CWG Business Partner (L6) 85,100 47,697

Total 26 CWG-People & Culture Resources Management 419,570 116,491

Total 09 Workforce 419,570 116,491

Total 03 City Operations 419,570 116,491

04 Economic Development10 Business Trade & Inv

28 CWG-Procurement & Bus Dev Program1006528 - 55254 - CWG Procurement Labour 123,297 65,9171006528 - 55255 - CWG Capacity Building Programs 108,236 28,583

Total 28 CWG-Procurement & Bus Dev Program 231,533 94,500

29 CWG-Trade and Investment Program1002716 - 55258 - CWG Gold Coast Showcasing Programs 0 6,7001002716 - 55260 - CWG International Trade & Investment Pro 213,850 34,212

Total 29 CWG-Trade and Investment Program 213,850 40,913

Total 10 Business Trade & Inv 445,383 135,412

11 Visitor Servicing30 CWG-Visitor Servicing

1000235 - CWG Commwth Games Visitor Servicing 0 2001000235 - 55262 - CWG Pop Up Visitor Servicing 0 1,5751000245 - Quality Service Program -Embracing GC201 0 96,3491000245 - 55169 - Destination Host Project Online 100,000 01000245 - 55170 - Implement Embracing 2018 Quality Service 200,000 15,15255168 - CWG Visitor Servicing (SP VIC) 861,905 16,208

Total 30 CWG-Visitor Servicing 1,161,905 129,483

Total 11 Visitor Servicing 1,161,905 129,483

Total 04 Economic Development 1,607,288 264,896

05 Major Projects12 Major Projects

31 CWG-Event Space55157 - Kurrawa Event Space 190,704 62,661

Total 31 CWG-Event Space 190,704 62,661

Total 12 Major Projects 190,704 62,661

13 Test Events & Venue Operations32 CWG-Test Events

1001299 - CWG GC2018 Test Events 250,000 123,030Total 32 CWG-Test Events 250,000 123,030

33 CWG-Venue Operations1000644 - CWG Venue Operations 838,688 844,374

Total 33 CWG-Venue Operations 838,688 844,374

Total 13 Test Events & Venue Operations 1,088,688 967,404

25 ICT WAN Cabling47 CWG-ICT WAN Infrastructure

55182 - Digital Plan - Smart City Infrastructure 320,482 7,87755271 - CWG ICT WAN cabling Stage 1 0 3,19260022 - CWG ICT WAN Cabling 1,750,000 4,993

Total 47 CWG-ICT WAN Infrastructure 2,070,482 16,062

Total 25 ICT WAN Cabling 2,070,482 16,062

Total 05 Major Projects 3,349,874 1,046,127

Project Description





$


$

14 Footpath & Cycleways34 CWG-Footpath & Cycleways

03663 - Bridge and Path Kropp Pk to Teemangum St 900,000 126,37103666 - CWG Musgrave Ave off Rd Shared Paths 3,000 89803668 - CG2018 Entertainment Dve Shared Path 116,469 45,56804373 - CWG Local Path Upgrades, Nerang 690,642 79,80904394 - CWG Sundale Green Bridge to Main Beach 666,199 58,67904490 - IntUpgrd Margaret Av Surf Pde Brdbch 1,331,260 194,28904531 - ShPth Nerang Brdbch Rd Carrara 3,458,543 94,40804574 - Victoria Ave/ Old Burleigh Rd Ped Xing 555,000 1,37304581 - PthUpgr GC Highway Nerang St North 690,000 48,57204604 - Xing Scarborough St Nerang St Southport 126,083 52,48804605 - Pthwy Carey Pk Nerang St Southport 290,310 36,56104606 - Xing Upgrd Sthprt Nerang St GC Hwy 215,766 45,49204610 - ShPth Musgrave Av Sthprt Labrdr 918,289 137,73550122 - CG2018 ShPth Beattie Rd Coomera 550,000 392,741

Total 34 CWG-Footpath & Cycleways 10,511,561 1,314,981

Total 14 Footpath & Cycleways 10,511,561 1,314,981

15 Network Management35 CWG-Network Management

1000031 - CWG Comm Games Transport Network Mgmt 437,630 01000031 - 03925 - ITMS Development (2,630) 01000031 - 04362 - GC2018 Modelling & Demand 5,870 01000031 - 05285 - Stakeholder Comms & Engagement 0 34,2901000031 - 05287 - City TPT C3 T&R 0 15,1261000031 - 05288 - Workforce Planning - Stg 1 0 2,490

Total 35 CWG-Network Management 440,870 51,906

Total 15 Network Management 440,870 51,906

16 Transport Integration36 CWG-Transport Integration

1004983 - Strategic Operations Administration 400,000 4201004983 - 05119 - Transport Analyst Support 0 70,0001004983 - 05142 - Transport & Readiness Activities 0 4911004983 - 05143 - Interactive Mapping Project 0 50,4051004983 - 05276 - Road Network Op Planning 0 6611004983 - 05277 - Games Arterial Ntwk temp overlay 0 73,2361006734 - Comm Games Labour Transport Integration 191,250 84,829

Total 36 CWG-Transport Integration 591,250 280,041

Total 16 Transport Integration 591,250 280,041

17 Travel Demand Management37 CWG-Travel Demand Management

1000030 - CWG Comm. Games Travel Demand Mgt 1,290,000 01000030 - 03879 - Venue- By -Venue GC2018 Parking Policy (2,457) 01000030 - 03937 - Marketing & Communications 2,457 01000030 - 04562 - GC2018 TDM Monitoring and Evaluation Pla 0 12,4251000030 - 04563 - GC2018 TDM Resources Evaluation 73,877 44,5601000030 - 04564 - GC2018 TDM Resource Development Cust Inf 0 5011000030 - 04627 - GC2018 TDM Program Development 0 12,4251000030 - 04628 - GC2018 TDM Testing, Readiness, & Eval 0 81000030 - 05184 - Workplaces Prg - End of Trip Facilities 0 8711000030 - 05185 - Workplaces Prg - Pub Transport Trials 0 1171000030 - 05186 - Freight Program 0 5811000030 - 05190 - TCC Processes and Training 0 40,7171000030 - 05279 - Specialist Advisor 0 19,8671002887 - Comm Games Labour Travel Demand Mment 1,389,998 399,472

Total 37 CWG-Travel Demand Management 2,753,875 531,544

Total 17 Travel Demand Management 2,753,875 531,544

18 Venue Transport38 CWG-Venue Transport

1000029 - CWG Commonwealth Games Venues Transport 1,070,000 321000029 - 04504 - GC2018 LATTP 0 428,4891000029 - 04527 - GC2018 Parking Operations Pilot 0 48,8651000029 - 04678 - GC2018 Kerbside Management Plan 178,966 01000029 - 04697 - GC2018 Urban Freight N/Work Plan 0 59,6121002886 - Comm Games Labour Venue Transport 472,500 150,601

Total 38 CWG-Venue Transport 1,721,466 687,599

Total 18 Venue Transport 1,721,466 687,599

Total 06 Transport & Traffic 16,019,022 2,866,071

Project Description





$


$

07 City Assets19 Rehabs and Reseals

39 CWG-Rehabs and Reseals04938 - Fern St Srfrs Pdse MF D7 120,000 447,02804964 - Macarthur Pde MainBh MF D7 180,000 181,00504980 - Nerang St Nerng OV D5 350,000 154,19105021 - Bayview St Runwy By MF D3 90,000 15405022 - Bayview St Runwy By MF D4 195,000 005023 - Crrmbn Crk Rd Crrmbn Vy HP (8548-9092) 0 98,05605024 - Duringan St Crrmbn HP D14 (1290-1681) 29,000 3,28205026 - Galleon Wy Crrmbn Wtrs RSL (217-334) 75,000 84,13305027 - Galleon Wy Crrmbn Wtrs OV (1877-2136) 210,000 201,68105029 - Galleon Wy Crrmbn Wtrs OV (3233-3700) 145,000 143,66305031 - Guineas Crk Rd Elanora MF (0-329) 350,000 302,28305032 - Guineas Crk Rd Elanora STAB (973-1169) 285,000 125,46505033 - Guineas Crk Rd Elanora STAB (1468-1901) 165,000 161,21305034 - Guineas Crk Rd Elanora OV (1901-2251) 228,000 135,66805035 - Guineas Crk Rd Tallbdgra OV (4479-4962) 220,000 190,74705036 - Guineas Crk Rd Tallbdgra OV D13 125,000 120,05305038 - K P Mcgrath Dr Elanora MF (3752-4017) 215,000 005040 - Marine Pde Bgra Wtrs MF D4 (650-815) 140,000 005043 - Nineteenth Av Elanora MF (3155-3412) 165,000 282,95705044 - Pacific Pde Crrmbn OV (220-457) 225,000 005045 - Tomewin St Crrmbn OV (0-422) 145,000 0

Total 39 CWG-Rehabs and Reseals 3,657,000 2,631,581

Total 19 Rehabs and Reseals 3,657,000 2,631,581

20 Road Reconstruction40 CWG-Essential Road Reconstruction

04643 - Cottesloe Dr Robina Bmda-RonPen Rd Recon 1,300,000 005049 - RdRecon Beattie Rd Dreamworld to Foxwell 0 16,736

Total 40 CWG-Essential Road Reconstruction 1,300,000 16,736

Total 20 Road Reconstruction 1,300,000 16,736

23 Beaches & Waterways44 CWG-Northern Beaches Protection

1002358 - Northern Beaches Shoreline Project 5,600,000 26,3771002358 - 05176 - Northern Beaches Shoreline Project 0 156,991

Total 44 CWG-Northern Beaches Protection 5,600,000 183,368

Total 23 Beaches & Waterways 5,600,000 183,368

24 Construction45 CWG-Public Conveniences

31056 - CWG Adventure Playground Amenities #1 318,000 30,92031145 - CWG Washington Waters Park Amenities #2 252,000 27,13731169 - CWG Aqua Splash Amenities #3 230,000 48,686

Total 45 CWG-Public Conveniences 800,000 106,743

46 CWG-Depots (Relocation)02621 - SOUTHPORT Depot Relocation 50,000 062360 - CWG ASHMORE Depot Site Works 399,447 101,85862361 - CWG ASHMORE Depot Building 8 1,650,000 557,48462362 - CWG ASHMORE Depot Building 9 610,000 413,49562363 - CWG ASHMORE Depot Building 10 800,000 66,65062364 - CWG CARRARA Depot Building C 1,298,105 1,127,07062365 - CWG COOMBABAH Depot AMO Compound 600,000 217,60162366 - CWG MIAMI Depot site works 545,000 212,54462395 - CWG BENOWA Pump Station 100,000 20,091

Total 46 CWG-Depots (Relocation) 6,052,552 2,716,794

Total 24 Construction 6,852,552 2,823,536

Total 07 City Assets 17,409,552 5,655,221

Project Description




There being no further business the meeting closed at 11.05am.


$


$

08 Venues and Village21 Venue Contributions

41 CWG-Environmental Sustainable Design55161 - CWG ESD Venue Initiatives 1,464,936 69,42455238 - CWG LED Sports Field Lighting Gold Coast 0 1,048

Total 41 CWG-Environmental Sustainable Design 1,464,936 70,471

42 CWG-Contributions55155 - CWG Venue Legacy Enhancements 1,650,000 3,73755160 - CARRARA SPORTS PRECINCT 1,183,000 055166 - CWG Annual Instalment to State Gov 20,000,000 0

Total 42 CWG-Contributions 22,833,000 3,737

Total 21 Venue Contributions 24,297,936 74,209

22 Water and Sewerage43 CWG-Water & Sewerage

71154 - CWG WFM Duplication to Coombabah STP 5,550,000 3,962,36871169 - CWG Carrara Sprt Precinct Recyc Wtr Proj 0 (6)71170 - CWG Pmp Stat Rising Mn Aug Carrara Prect 500,000 9,30671172 - CWG Sewrge Sys Aug Hockey cntr KeithHunt 30,000 10,93671306 - CWG Coomera Sports Park Sewer Upgrade 160,000 36,041

Total 43 CWG-Water & Sewerage 6,240,000 4,018,645

Total 22 Water and Sewerage 6,240,000 4,018,645

Total 08 Venues and Village 30,537,936 4,092,853

Total - GC2018 Games Program Budget 30,537,936 4,092,853

Operating Total - GC2018 Program Budget 13,333,188 4,382,263Operating Total - Enabled Opex 16,610,689 2,307,083

Total Operating 29,943,877 6,689,346

Capital Total - GC2018 Program Budget 45,684,879 5,837,842Capital Total - Enabled Capex 16,210,791 5,601,946

Total Capital 61,895,670 11,439,788

Total GC2018 Operating and Capital 91,839,547 18,129,134

Project Description

PB_020 Directors Report - December 2016 Budget Review

Directorate: City InfrastructureRecurrent

Review(Fav)/Unfav

Non-RecurrentReview

(Fav)/Unfav

Total Review

(Fav)/UnfavExpenses (236,373) 1,237,423 1,001,050Revenue (180,890) (1,543,436) (1,724,326)Net Directorate Variations (417,263) (306,013) (723,276)

Budget Review CategoriesDirectorate Variations Recurrent

Review(Fav)/Unfav

Non-RecurrentReview

(Fav)/Unfav

Total Review

(Fav)/UnfavGeneral Review - Dec 16 0 0 0Intra Directorate - Dec 16 0 0 0Net Directorate Variations 0 0 0

Inter-Directorate Variations (Balanced between Directorates)Inter Directorate - Dec 16 (340,000) 145,586 (194,414)Procurement Savings - Dec 16 (77,263) (451,599) (528,862)Total Net Directorate Variations (417,263) (306,013) (723,276)

Directorate Variations - Comments on Major VariationsThe following significant General review items have been included in the December Review;

$857,440 (Revenue favourable, Expense unfavourable, net nil) - Recognise 30% upfront payment of NaturalDisaster Resilience Program Grant from the Department of Infrastructure, Local Government and Planning.The total approved grant is $2,858,135 which will be claimed progressively in arrears over the 2016-17 and2017-18 financial years as works are completed.

$279,864 (Revenue favourable, Expense unfavourable, net nil) - Transfer of PIPTRLO unconstrained Trustfunds for Helensvale Road, Monterey Keys upgrade stage 2.

$175,000 (Revenue favourable, Expense unfavourable, net nil) - Transfer of funds from CommonwealthGames Reserve for Surf Parade to First Avenue, Broadbeach Road Reconstruction to be brought forwardfrom 2017-18 and completed this Financial Year in conjunction with other works in the area.

$160,000 (Revenue favourable) - Increase in anticipated revenue for Temporary Road Closures from originalestimate of $160,000 to a revised budget of $320,000 as a result of higher than anticipated developeractivity.

$160,000 (Expense unfavourable) - Funding required to maintain and rotate 35 City funded SpeedAwareness Devices. 14 of these devices need to be installed with 3G capability.

$1,916,657 (Expense transfer, net nil) - Distribution of funds in the Road Infrastructure Program to balance anumber of projects that require additional funding.

$775,500 (Expense transfer, net nil) - Distribution of funding required to meet the needs of the ActiveTransport Program.

The following significant Inter Directorate transfer has been included in the December Review;

$198,340 (Expense transfer) - Transfer of 4 Contracts Administration FTEs from Strategic Planning &Improvement to Legal Services (OCEO).

Procurement Savings

$528,862 of Procurement Savings were identified in the period from September to November with the largestbeing;

$291,729 Labour Hire Contract

$68,576 Plant Hire Contract

$57,320 Pressure Cleaning of Footpaths

PB_020 Budget Review - Directors Report City of Gold Coast-IN-CONFIDENCE Page : 1 of 16Report printed as at 19-01-2017 About this Report

Attachment 2

../../opendoc/openDocument.jsp?&sType=wid&sIDType=CUID&iDocID=AWAd0CiNAoJCuJN4mzY8vRk&sWindow=New&lsSBI%20Report%20Name=PB_020%20Budget%20Review%20-%20Directors%20Report


Future Budget Trends

Director of City Infrastructure - Alton Twine DATE

The following significant General review items have been included in the December Review;

$857,440 (Revenue favourable, Expense unfavourable, net nil) - Recognise 30% upfront payment of NaturalDisaster Resilience Program Grant from the Department of Infrastructure, Local Government and Planning.The total approved grant is $2,858,135 which will be claimed progressively in arrears over the 2016-17 and2017-18 financial years as works are completed.

$279,864 (Revenue favourable, Expense unfavourable, net nil) - Transfer of PIPTRLO unconstrained Trustfunds for Helensvale Road, Monterey Keys upgrade stage 2.

$175,000 (Revenue favourable, Expense unfavourable, net nil) - Transfer of funds from CommonwealthGames Reserve for Surf Parade to First Avenue, Broadbeach Road Reconstruction to be brought forwardfrom 2017-18 and completed this Financial Year in conjunction with other works in the area.

$160,000 (Revenue favourable) - Increase in anticipated revenue for Temporary Road Closures from originalestimate of $160,000 to a revised budget of $320,000 as a result of higher than anticipated developeractivity.

$160,000 (Expense unfavourable) - Funding required to maintain and rotate 35 City funded SpeedAwareness Devices. 14 of these devices need to be installed with 3G capability.

$1,916,657 (Expense transfer, net nil) - Distribution of funds in the Road Infrastructure Program to balance anumber of projects that require additional funding.

$775,500 (Expense transfer, net nil) - Distribution of funding required to meet the needs of the ActiveTransport Program.

The following significant Inter Directorate transfer has been included in the December Review;

$198,340 (Expense transfer) - Transfer of 4 Contracts Administration FTEs from Strategic Planning &Improvement to Legal Services (OCEO).

Procurement Savings

$528,862 of Procurement Savings were identified in the period from September to November with the largestbeing;

$291,729 Labour Hire Contract

$68,576 Plant Hire Contract

$57,320 Pressure Cleaning of Footpaths


Attachment 2



Directorate: Community ServicesRecurrent

Review(Fav)/Unfav

Non-RecurrentReview

(Fav)/Unfav

Total Review

(Fav)/UnfavExpenses 338,689 1,677,256 2,015,945Revenue 0 (1,366,445) (1,366,445)Net Directorate Variations 338,689 310,811 649,500


Review(Fav)/Unfav

Non-RecurrentReview

(Fav)/Unfav

Total Review

(Fav)/UnfavGeneral Review - Dec 16 0 452,001 452,001Intra Directorate - Dec 16 0 0 0Net Directorate Variations 0 452,001 452,001

Inter-Directorate Variations (Balanced between Directorates)Inter Directorate - Dec 16 351,810 10,000 361,810Procurement Savings - Dec 16 (13,121) (151,190) (164,311)Total Net Directorate Variations 338,689 310,811 649,500

Directorate Variations - Comments on Major VariationsLions Head Park Slope Stabilisation Project - Expenditure Increase $800,000

The September budget review advised that the Lions Head Park Slope Stabilisation Project shortfall wasapproximately $1.3 million, and $500,000 of that amount was allocated in the September review. Followingsignificant clarification of various matters the tender has now been awarded for the project and the previouslyadvised $800,000 (including almost $430,000 in contingencies) will be required this financial year tocomplete the project. This will bring the revised budget this financial year to $4,629,009. The contractor’srevised tender program now has works scheduled for completion in May 2017. This is a positive outcome asthe expedited program is approximately $1 million less than the previous 28 week program that spanned 2financial years. This cost reduction continues the significant costs avoided through reducing the size of thecatch fence and adjustments to mesh areas that have reduced the amount of rock anchoring.

As previously advised it should be noted that the costs do not include the additional works required behindSantorini by the Sea, within Lions Head Park. To undertake the work Council requires access throughSantorini by the Sea and Council is currently taking all reasonable action to gain such access. It is proposedthat required funding be considered in the 2017-18 and 2018-19 years (assumed $1.25 million).

Broadwater Parklands CCTV and Lighting Project - Revenue Increase $684,640 Expenditure Increase$684,640

The City has been advised that a State Government grant of $614,640 for the installation of lighting andCCTV in the Broadwater Parklands is available. This grant represents a 60% subsidy on the estimated totalproject cost of $1,024,400. Based on cash flow forecasts the City’s total contribution of $409,760 will likely berequired over two financial years. Funding of $30,000 has been committed from the Commonwealth Gamesbudget and $40,000 is allocated from within the Safe and Liveable Communities budget.

The project includes the installation of lighting and CCTV in the Broadwater Parklands southern precinct(including coverage of the pathway connection to the G-Link station through Matron and Sister Higman Park)and the mid-section (Northern Pavilion Building). The project will address concerns raised by QueenslandPolice regarding lighting and CCTV black spots following numerous incidents over the last 12 months in andaround the immediate vicinity of the Broadwater Parklands including the Southport CBD; and it is a keyrecommendation of a recent safety audit of GC2018 event precincts. This project will dramatically improvethe level of surveillance, public safety and reduce the opportunity for crimes to occur and will be critical forpatron safety and city reputation during GC2018.

Existing Carrara Indoor Stadium Operations - Revenue $217,500 Increase, $47,699 Expenditure Decrease

The existing Carrara Indoor Stadium venue was originally planned to be closed for redevelopment fromNovember 2016 but will now be open up until March 2017. The venue has also had an increase in bookingsand events with a number of new significant events hosted. As a result budget adjustments to both theStadium and Canteen revenue are required to reflect additional activity. Despite increased activity at thevenue, operational expenditure savings against the budget are also being forecasted.

Capital Works Rescheduling - Major Sporting Venues

Gold Coast Sports & Leisure Centre Refit & Equipment project requires an additional $425,545 to fund worksnot covered by the Commonwealth Games venue funding. This allocation will support the ICT set upincluding installation of public wi-fi and also the provision of dividing nets to support multi-purpose use for theeight community courts in Hall 2.

The Coomera Indoor Sports & Leisure Centre requires $200,000 to fund works not covered by theCommonwealth Games venue funding. This allocation will support the direct purchase of equipment toensure operational readiness of venue post GC2018 e.g. floor tiles, furniture and fittings to supportconferencing and events, specialised sports equipment such as blackout curtains and dividing nets.

This funding for these projects can be sourced from:

- the Carrara Indoor Stadium Equipment Renewal project for $247,627. The previously proposed newelectronic scoring system for this facility is no longer required as a result of a change of use (squash courtsand 2 multi-purpose courts) of this facility post Commonwealth Games.- $42,918 has been identified for reallocation from the Carrara Outdoor Playing Fields project. No additionalworks required in 2016-17 as new community sporting fields have recently been completed and new elitefields have been delayed and are still under construction.- $90,000 is able to be reallocated from the Gold Coast Cycle Centre Renewals project as the previouslyproposed Mountain Bike skills track is not able to be advanced prior to GC2018.- $245,000 can be reallocated from the Runaway Bay Indoor Stadium Asset Renewals project from areprioritisation of proposed upgrades to the PA system and mechanical exhaust upgrade to the main hall.

Capital Works Rescheduling - Bruce Bishop Car Park

Remedial Works Bruce Bishop Car Park - Expenditure Increase $172,500Estimates have been received for investigation and testing of the southern part of Bruce Bishop Car Park. Asection of wall had collapsed and it is the City's solicitor's recommendation that a full investigation of thestructure be undertaken. A preliminary investigation by consultants Cardno, suggest areas that require moreintense and detailed investigation. Hence quotations were sought. This proposed budget will only covercosts of investigation and testing (estimated $150,000) City Infrastructure project management costs(estimated $23,000) and the remainder to repair and reopen the closed stairwell and repair the partiallyclosed stairwell. Once results of the reports are provided a better estimate of further works can then beprovided.

To offset the above works, a reduction has been made to the Bruce Bishop Concrete Rectification Works of$172,500. The budget has been reduced to fund the investigation and testing of the southern part of the carpark to detect any structural issues. City Infrastructure through their discussions with engineers hasidentified a possible method for reducing year one costs to works for priority 1 repair through the constructionof an internal wall. It is intended these interim reduced costs be redirected to the southern investigativerepair works for the car park.

Capital Works Rescheduling - Aquatic Facilities

A reallocation of capital works funding is proposed from Upper Coomera Aquatic Centre ($60,000) (project30882 and 30884) and Woongoolba Equipment and Renewal ($30,000) (project 30589) to the MudgeerabaAquatic Centre $90,000 (project 30585) in order to contribute towards the completion and upgrade of a newroof and facility amenities. These works are required due to the existing assets being at the end of theiruseful life. With increasing patronage year on year it is proposed to combine the two projects (previouslyproposed to be covered over consecutive years), to minimise downtime & disruption to the operations of thecomplex. Only minimal works are required at Upper Coomera and Woongoolba for the remainder of the2016-17 financial year.


Attachment 2



Lions Head Park Slope Stabilisation Project - Expenditure Increase $800,000


















PB_020 Budget Review - Directors Report City of Gold Coast-IN-CONFIDENCE Page : 4 of 16

Report printed as at 19-01-2017 About this Report

Attachment 2




Director of Community Services - Alison Ewens DATE




















Attachment 2



Directorate: Economic Development and Major ProjectsRecurrent

Review(Fav)/Unfav

Non-RecurrentReview

(Fav)/Unfav

Total Review

(Fav)/UnfavExpenses 0 1,370,760 1,370,760Revenue 0 (1,314,260) (1,314,260)Net Directorate Variations 0 56,500 56,500


Review(Fav)/Unfav

Non-RecurrentReview

(Fav)/Unfav

Total Review


Inter-Directorate Variations (Balanced between Directorates)Procurement Savings - Dec 16 0 (4,500) (4,500)Total Net Directorate Variations 0 56,500 56,500

Directorate Variations - Comments on Major Variations$130,000 net nil variance - clarity on Distinctly Gold Coast funding purpose onlyThe Distinctly Gold Coast budget supports the development of bold, energetic and authentic cultural productthat partners with our tourism industry and enhances city reputation. In July 2016 a $130,000 reprovisionwas requested to support our application to co-fund the development of digital art infrastructure within the citythrough the GC2018 State Government Public Domain Infrastructure Program (PDIP). The StateGovernment has now advised that the PDIP application has not been successful. Therefore, it is necessaryto return these funds to their original purpose of developing cultural product within the Gold Coast to ensurewe continue to lift the cultural profile of the Gold Coast and retain the momentum that is building ahead ofGC2018. In November 2016, the City undertook a pilot of "Hotelling", a cultural tourism initiative developed inpartnership with the hospitality and tourism sector and delivered by Bleached Arts. With a media audiencereach of 746,876 this project received critical acclaim from national and international media. "Hotelling"delivers on the strategic intent of developing Distinctly Gold Coast cultural opportunities and it is proposedthat a second iteration of Hotelling be undertaken in June/July 2017. It is proposed that for continuity of brandand product, this contract be awarded directly to Bleached Arts. The opportunity to make this timelyexpansion of the "Hotelling" program will support it to become a significant cultural tourism offering within thecity.

$61,000 increase EXP UNFAV The Kurrawa Walk project was reliant on extraordinary funding via the State Government CommonwealthGames Public Domain Improvement Program. Council contribution was a collective of various fundingsources including $31,000 from 30147 - Div 10 Kurrawa Pk Fac Redev and $30,000 from 55165 CWGBroadbeach Mall project. The State Government funding did not come to fruition and the funds wereinadvertently given up in the July reprovision process however it is proposed to return this fundingcomponent back to its original budget area for execution on other projects on the subject site. It is importantto note that the $31,000 contribution from Parks are park developer contributions held in Trust and onlyavailable to be spent on the parkland associated with the original developer contribution; the $30,000 from55165 CWG Broadbeach Mall project makes up part of a GC2018 approved project and is also required tobe returned for appropriate allocation within the GC2018 Program.

($4,500) decrease EXP FAVQuarterly procurement savings as identified by the OCPO (Sept-Nov 2016).

GC2018 Games ProgramAll GC2018 cost centre and project budget movements are aligned with the GC2018 Games Program budgetas approved by Council in June 2016. Includes $955,560 savings on the Southport Broadwater ParklandsStage 3 project which has been reallocated to support other GC2018 Games Program deliverables as perGC2018 Games Program budget.


Attachment 2




Director of Economic Development and Major Projects - Darren Scott DATE


Attachment 2



Directorate: Gold Coast WaterRecurrent

Review(Fav)/Unfav

Non-RecurrentReview

(Fav)/Unfav

Total Review

(Fav)/UnfavExpenses (613,450) (10,994,712) (11,608,162)Revenue 8,750 11,599,412 11,608,162Net Directorate Variations (604,700) 604,700 0


Review(Fav)/Unfav

Non-RecurrentReview

(Fav)/Unfav

Total Review

(Fav)/UnfavGeneral Review - Dec 16 (604,700) (452,028) (1,056,728)Intra Directorate - Dec 16 0 0 0Operational Projects - Dec 16 0 1,056,728 1,056,728Net Directorate Variations (604,700) 604,700 0

Inter-Directorate Variations (Balanced between Directorates)Procurement Savings - Dec 16 0 0 0Total Net Directorate Variations (604,700) 604,700 0

Directorate Variations - Comments on Major VariationsInfrastructure Charges Revenue - Increase $5 million:Revenue received from this source to 30 June 2016 total $24.7 million. This represents almost 62% of theannual budget of $40 million. Based on these high receipts to date, it is proposed to increase the annualbudget to $45 million in this review.

Volumetric Revenues - Decrease $3.4 million:An error occurred in the load of the 2016-17 initial budget with regard to allocations for concealed leakageremissions. Correcting this error results in a reduction in expected volumetric revenue of $3.4 million.

Waste Management Legal Expenses - Expense Decrease $3 million / Revenue Decrease $2 million /Expense Increase $1 million:The budget currently includes a total allocation of $3 million for costs associated with a Waste Managementlegal matter that were expected to be required in the current financial year. $2 million of the total was funded(in the September budget review) by way of a transfer from the Waste Management Reserves, with $1million having been included in the Initial Budget. It is no longer anticipated this expenditure will occur in thecurrent financial year, so the expenditure allocation is being removed from the budget and the total $3 millionfunding is being transferred to reserves.

Waste Management Capital Program - Expense Decrease $5.1 million / Revenue Decrease $4.6 million:Following a review of the Waste Management Capital, it has been determined that the current year'sprogram should be reduced by a total of $5.1 million. Details of specific movements can be found within theWaste Management Budget Review Report and the detailed budget review report. A correspondingdecrease in expected loan borrowings of $4.6 million has also been identified as a result of thoseexpenditure reductions.

Water and Sewerage Reserves Transfer - Expense Decrease $4.2 million:Funds available to be transferred to reserves have decreased by $4.2 million as a result of the movementsidentified within this budget review. The major contributor to this decrease is the reduction in volumetricrevenues. Reserve balance at year end is expected to be approximately $157 million. These cash reservesare set aside for future water and sewerage infrastructure requirements, with infrastructure requirementsexpected to exceed $1.1 billion over the next ten years.

Waste Management Reserves Transfer - Expense Increase $4.2 million:The net change in transfers to waste management reserves is an increase of $4.2 million due to acombination of the reduction of the allocation for legal expenses, the deferral of capping works at the ReedyCreek landfill and the recognition of investment interest on cash reserves. Reserve balance at year end isexpected to be approximately $22 million. These cash reserves are set aside to meet future legislativeobligations associated with capping, remediation and post-closure monitoring requirements for landfills (bothclosed and currently operational) and for future capital requirements associated with waste management.


Attachment 2




Director of Gold Coast Water - Paul Heaton DATE

Infrastructure Charges Revenue - Increase $5 million:Revenue received from this source to 30 June 2016 total $24.7 million. This represents almost 62% of theannual budget of $40 million. Based on these high receipts to date, it is proposed to increase the annualbudget to $45 million in this review.

Volumetric Revenues - Decrease $3.4 million:An error occurred in the load of the 2016-17 initial budget with regard to allocations for concealed leakageremissions. Correcting this error results in a reduction in expected volumetric revenue of $3.4 million.

Waste Management Legal Expenses - Expense Decrease $3 million / Revenue Decrease $2 million /Expense Increase $1 million:The budget currently includes a total allocation of $3 million for costs associated with a Waste Managementlegal matter that were expected to be required in the current financial year. $2 million of the total was funded(in the September budget review) by way of a transfer from the Waste Management Reserves, with $1million having been included in the Initial Budget. It is no longer anticipated this expenditure will occur in thecurrent financial year, so the expenditure allocation is being removed from the budget and the total $3 millionfunding is being transferred to reserves.

Waste Management Capital Program - Expense Decrease $5.1 million / Revenue Decrease $4.6 million:Following a review of the Waste Management Capital, it has been determined that the current year'sprogram should be reduced by a total of $5.1 million. Details of specific movements can be found within theWaste Management Budget Review Report and the detailed budget review report. A correspondingdecrease in expected loan borrowings of $4.6 million has also been identified as a result of thoseexpenditure reductions.

Water and Sewerage Reserves Transfer - Expense Decrease $4.2 million:Funds available to be transferred to reserves have decreased by $4.2 million as a result of the movementsidentified within this budget review. The major contributor to this decrease is the reduction in volumetricrevenues. Reserve balance at year end is expected to be approximately $157 million. These cash reservesare set aside for future water and sewerage infrastructure requirements, with infrastructure requirementsexpected to exceed $1.1 billion over the next ten years.

Waste Management Reserves Transfer - Expense Increase $4.2 million:The net change in transfers to waste management reserves is an increase of $4.2 million due to acombination of the reduction of the allocation for legal expenses, the deferral of capping works at the ReedyCreek landfill and the recognition of investment interest on cash reserves. Reserve balance at year end isexpected to be approximately $22 million. These cash reserves are set aside to meet future legislativeobligations associated with capping, remediation and post-closure monitoring requirements for landfills (bothclosed and currently operational) and for future capital requirements associated with waste management.


Attachment 2



Directorate: Office of the CEORecurrent

Review(Fav)/Unfav

Non-RecurrentReview

(Fav)/Unfav

Total Review

(Fav)/UnfavExpenses 82,440 594,782 677,222Revenue 517,000 (2,985,901) (2,468,901)Net Directorate Variations 599,440 (2,391,119) (1,791,679)


Review(Fav)/Unfav

Non-RecurrentReview

(Fav)/Unfav

Total Review

(Fav)/UnfavGeneral Review - Dec 16 517,000 (1,742,901) (1,225,901)Intra Directorate - Dec 16 0 0 0Net Directorate Variations 517,000 (1,742,901) (1,225,901)

Inter-Directorate Variations (Balanced between Directorates)Inter Directorate - Dec 16 82,440 (566,660) (484,220)Procurement Savings - Dec 16 0 (81,558) (81,558)Total Net Directorate Variations 599,440 (2,391,119) (1,791,679)

Directorate Variations - Comments on Major VariationsInvestment and Other Interest Income - $2,163,901 Revenue Favourable. ___________________________________________________________

A review of the interest from Investment Income has projected a net increase of $2,163,901. The RevisedBudget was based on an average cash balance of $850 million at an average interest rate of 2.6%. Theaverage cash balance to date has been $925 million, with the high balances still be driven by the amount ofcash held in reserve. It is likely that the current year to date average balance will be indicative of the full yearaverage cash balance, so this figure has been used to recalculate the investment income budget. Theaverage earnings rate has also remained above projections and is currently 2.7%. Investing $925 million at2.7% provide an estimated investment revenue of $24,975,000. $517,000 of this revenue is proposed to beallocated to Waste Management for funds held in the Reserves to be in line with what is done for the Waterand Sewerage Reserve.

Rocket Building Lease Arrangement - $455,000 Expenditure and $295,000 Revenue Unfavourable._________________________________________________________________________________

Additional funding of $750,000 ($455,000 increased expenditure and $295,000 reduced revenue) is requiredto fund the new lease arrangement and a reduction in revenue of $295,000 for a sub-lease that did noteventuate.

The Council has executed a Deed with the Landlord of Rocket Building, effective from 30 November 2016 asfollows:

1. A surrender of floors 1-4;2. Retention by the City of a lease over the 5th floor area only (rental will continue to be paid for the retentionarea level 5 and car park at the rate of circa $482,000 per annum until such time as the lease for such areaexpires in March 2019; and3. As consideration for the surrender, a one off payment of $1.5million.

Based on the above arrangement, the expenditure budget is proposed to be increased from $2,214,000 to$2,669,000 in 2016-17. The increase of $455,000 being the difference between the surrender payment and areduction in lease payments for floors 1-4. It should be noted that under the new lease arrangement, therewill be a reduction in total lease payments of $3.6 million from 1 December 2016 (effective date of new leasearrangement) to 20 March 2019 (expiration of the previous lease arrangement). This represents an overallsaving of $2.1 million following payment of the surrender fee of $1.5 million.

CWG ICT WAN Cabling - $600,000 Revenue & Expenditure Increase - Net Nil Impact. ______________________________________________________________________

As noted in the “Commonwealth Games Programs and Budget Review” report to Council on 29 November, itis proposed that $600,000 of program savings be utilised to fund CWG ICT WAN Cabling Project (Project60022). GC2018 Games Program - All GC2018 cost centre and project budget movements are aligned withthe GC2018 Games Program budget as approved by Council in June 2016.

Coordinator Devices - Digital City Program.____________________________________

$155,000 is requested to be transferred recurrently from 'The Bank' to fund a new position - CoordinatorDevices - Digital City Program. This position is to provide technical, operational and strategic advice toCouncil directorates in the planning, operation and management of sensor and devices networks. Specificdutiesinclude:


Procurement Savings - $81,558 Expenditure Favourable. ______________________________________________

Office of the CEO’s Procurement Savings for the Period from September 2016 to November 2016.


Attachment 2




Chief Operating Officer of Office of the CEO - Joe McCabe DATE

Investment and Other Interest Income - $2,163,901 Revenue Favourable. ___________________________________________________________

A review of the interest from Investment Income has projected a net increase of $2,163,901. The RevisedBudget was based on an average cash balance of $850 million at an average interest rate of 2.6%. Theaverage cash balance to date has been $925 million, with the high balances still be driven by the amount ofcash held in reserve. It is likely that the current year to date average balance will be indicative of the full yearaverage cash balance, so this figure has been used to recalculate the investment income budget. Theaverage earnings rate has also remained above projections and is currently 2.7%. Investing $925 million at2.7% provide an estimated investment revenue of $24,975,000. $517,000 of this revenue is proposed to beallocated to Waste Management for funds held in the Reserves to be in line with what is done for the Waterand Sewerage Reserve.

Rocket Building Lease Arrangement - $455,000 Expenditure and $295,000 Revenue Unfavourable._________________________________________________________________________________

Additional funding of $750,000 ($455,000 increased expenditure and $295,000 reduced revenue) is requiredto fund the new lease arrangement and a reduction in revenue of $295,000 for a sub-lease that did noteventuate.

The Council has executed a Deed with the Landlord of Rocket Building, effective from 30 November 2016 asfollows:

1. A surrender of floors 1-4;2. Retention by the City of a lease over the 5th floor area only (rental will continue to be paid for the retentionarea level 5 and car park at the rate of circa $482,000 per annum until such time as the lease for such areaexpires in March 2019; and3. As consideration for the surrender, a one off payment of $1.5million.

Based on the above arrangement, the expenditure budget is proposed to be increased from $2,214,000 to$2,669,000 in 2016-17. The increase of $455,000 being the difference between the surrender payment and areduction in lease payments for floors 1-4. It should be noted that under the new lease arrangement, therewill be a reduction in total lease payments of $3.6 million from 1 December 2016 (effective date of new leasearrangement) to 20 March 2019 (expiration of the previous lease arrangement). This represents an overallsaving of $2.1 million following payment of the surrender fee of $1.5 million.

CWG ICT WAN Cabling - $600,000 Revenue & Expenditure Increase - Net Nil Impact. ______________________________________________________________________

As noted in the “Commonwealth Games Programs and Budget Review” report to Council on 29 November, itis proposed that $600,000 of program savings be utilised to fund CWG ICT WAN Cabling Project (Project60022). GC2018 Games Program - All GC2018 cost centre and project budget movements are aligned withthe GC2018 Games Program budget as approved by Council in June 2016.

Coordinator Devices - Digital City Program.____________________________________

$155,000 is requested to be transferred recurrently from 'The Bank' to fund a new position - CoordinatorDevices - Digital City Program. This position is to provide technical, operational and strategic advice toCouncil directorates in the planning, operation and management of sensor and devices networks. Specificdutiesinclude:


Procurement Savings - $81,558 Expenditure Favourable. ______________________________________________

Office of the CEO’s Procurement Savings for the Period from September 2016 to November 2016.


Attachment 2



Directorate: Organisational ServicesRecurrent

Review(Fav)/Unfav

Non-RecurrentReview

(Fav)/Unfav

Total Review

(Fav)/UnfavExpenses 26,134 (175,058) (148,924)Revenue 100,000 1,372,470 1,472,470Net Directorate Variations 126,134 1,197,412 1,323,546


Review(Fav)/Unfav

Non-RecurrentReview

(Fav)/Unfav

Total Review

(Fav)/UnfavGeneral Review - Dec 16 130,000 24,900 154,900Intra Directorate - Dec 16 0 0 0Net Directorate Variations 130,000 24,900 154,900

Inter-Directorate Variations (Balanced between Directorates)Inter Directorate - Dec 16 (94,250) 415,000 320,750Procurement Savings - Dec 16 90,384 757,512 847,896Total Net Directorate Variations 126,134 1,197,412 1,323,546

Directorate Variations - Comments on Major Variations

Water Meter Reading Unit - Net $Nil$900,620 - Transfer of Water Meter Reading Unit and associated budgets to Gold Coast Water.

Commonwealth Games People & Culture GC2018 budget transfer to EDMP - Net $Nil$1,392,370 Expenditure Decrease & $1,392,370 Revenue Decrease. Transfer to EDMP to consolidateGC2018 budgets within EDMP Directorate.

Waterside Courtyard works - $225,000 TransferTransfer of funds from OCEO Directorate as contribution towards Waterside courtyard works.

Cyber Resilience Program - $190,000 Transfer.A cyber resilience assessment was performed across the City of Gold Coast from February to August 2016in response to recommendations made in the City of Gold Coast Internal Audit Report 2014-2015:#07 -Cyber Security Profile, Improving Council’s Cyber Resilience. The assessment identified 4 aggregated cyberrisks. As a result of the findings, the responsibility for the project was moved from Corporate Safety and Riskto Business Innovation and Technology Services.

Merchant Service Fee Revenue - $100,000 UnfavourableAs a result of amendments to the Competition and Consumer Act 2010, the amount of the merchant servicefee recoverable from consumers must not exceed the cost of acceptance of that card system. In Council’scase, there are 10 card systems acceptable (5 for each of MasterCard and Visa). Previously, a merchantcould calculate a blended rate to ensure the total costs incurred by all card systems could be appliedconditional upon the total amount recovered not exceeding the total costs incurred. Under the most recentamendments, the merchant must calculate this charge at the card system level. In cases where this cannotbe achieved, the recoverable cost must not exceed the cost of the lowest card system charges. In view ofthis amendment, Council’s recoverable merchant service fee rate will reduce from 0.6% to 0.38%. Theestimated loss in revenue will be $100,000 for the remainder of the 2016-17 financial year.

Procurement Savings - $997,097The CPO has achieved procurement savings for the period September to November 2016 of $5,354,562.Due to exclusions for Business Units (Water, Waste & Tourist Parks), savings with a funding source (loans,infrastructure charges, grants etc) and other specific exclusions, Directorates have loaded $997,097 worth ofidentified savings.


Attachment 2




Director of Organisational Services - Glen Potter DATE


Attachment 2



Directorate: Planning and EnvironmentRecurrent

Review(Fav)/Unfav

Non-RecurrentReview

(Fav)/Unfav

Total Review

(Fav)/UnfavExpenses 0 2,535,409 2,535,409Revenue 0 (2,050,000) (2,050,000)Net Directorate Variations 0 485,409 485,409


Review(Fav)/Unfav

Non-RecurrentReview

(Fav)/Unfav

Total Review


Inter-Directorate Variations (Balanced between Directorates)Inter Directorate - Dec 16 0 (3,926) (3,926)Procurement Savings - Dec 16 0 (68,665) (68,665)Total Net Directorate Variations 0 485,409 485,409

Directorate Variations - Comments on Major VariationsPlanning & Environment Legal Expenses - Expense Increase $1.0 million:

Fees & Charges Revenue - Revenue Increase ($2.0 million):High levels of development activity are continuing across the City. Whilst the level of activity in the 2016-17year to date is not as high as the same time last financial year, revenues are currently exceeding budgetprojections. An increase in budget of $1.85 million, bringing total anticipated revenue for the year to $29.7million.

Local Government Infrastructure Plan (LGIP) - Expense Increase $1.558 million:The City is legislatively required to have a new LGIP in place by 1 July 2018. A draft LGIP is proposed to beadopted by Council in May 2017 to enable a State interest check and also a community consultation processto be undertaken in order to meet this legislative deadline. Should this deadline not be achieved, the City’sability to levy infrastructure charges is likely to be adversely impacted. No additional non-recurrent funding was requested for this project in the 2016-17 initial budget (notingreprovisions of approximately $1 million being carried forward from 2015-16) while additional resourcingneeds for networks were being evaluated to incorporate the emerging requirements of the compliance reviewand the evolving landscape of infrastructure planning across the state. This scoping has now beencompleted and additional funding of $1,558,000 is requested for 2016-17 to complete the initial draft LGIP.Key reasons for the additional funding required are:

· Project management resources required to be substantially increased, in terms of both quantity andspecialist skills, given the significance and ramifications of the project· Compliance review and emerging issues in relation to stormwater resulted in specialised assistance notanticipated by the network in original budget submissions· Compliance review identified differing interpretations of statutory guideline resulting in additional work andeffort for parks, transport and stormwater networks (internal and external)

Further funding will be required for the 2017-18 financial year to progress the draft LGIP as a City Planamendment and to commence LGIP major amendment 1.

City Placemaking Project - Surf Parade, Broadbeach: NIL impact on BudgetA total increase of $450,000 has been provided for this project, in accordance with Council ResolutionG16.1129.028. Funding for this increase has come from a combination of $400,000 transferred from withinthe existing City Placemaking capital budget and $50,000 provided from the Digital Cities funding within theCommonwealth Games budget.


Attachment 2


31959

Typewritten Text

Redacted



Director of Planning and Environment - Dyan Currie DATE

Planning & Environment Legal Expenses - Expense Increase $1.0 million:A significant development application has been under appeal for some time and has now reached courtproceedings. Additional legal expenses are expected to be incurred to meet the City's costs for theseproceedings.

Fees & Charges Revenue - Revenue Increase ($2.0 million):High levels of development activity are continuing across the City. Whilst the level of activity in the 2016-17year to date is not as high as the same time last financial year, revenues are currently exceeding budgetprojections. An increase in budget of $1.85 million, bringing total anticipated revenue for the year to $29.7million.

Local Government Infrastructure Plan (LGIP) - Expense Increase $1.558 million:The City is legislatively required to have a new LGIP in place by 1 July 2018. A draft LGIP is proposed to beadopted by Council in May 2017 to enable a State interest check and also a community consultation processto be undertaken in order to meet this legislative deadline. Should this deadline not be achieved, the City’sability to levy infrastructure charges is likely to be adversely impacted. No additional non-recurrent funding was requested for this project in the 2016-17 initial budget (notingreprovisions of approximately $1 million being carried forward from 2015-16) while additional resourcingneeds for networks were being evaluated to incorporate the emerging requirements of the compliance reviewand the evolving landscape of infrastructure planning across the state. This scoping has now beencompleted and additional funding of $1,558,000 is requested for 2016-17 to complete the initial draft LGIP.Key reasons for the additional funding required are:

· Project management resources required to be substantially increased, in terms of both quantity andspecialist skills, given the significance and ramifications of the project· Compliance review and emerging issues in relation to stormwater resulted in specialised assistance notanticipated by the network in original budget submissions· Compliance review identified differing interpretations of statutory guideline resulting in additional work andeffort for parks, transport and stormwater networks (internal and external)

Further funding will be required for the 2017-18 financial year to progress the draft LGIP as a City Planamendment and to commence LGIP major amendment 1.

City Placemaking Project - Surf Parade, Broadbeach: NIL impact on BudgetA total increase of $450,000 has been provided for this project, in accordance with Council ResolutionG16.1129.028. Funding for this increase has come from a combination of $400,000 transferred from withinthe existing City Placemaking capital budget and $50,000 provided from the Digital Cities funding within theCommonwealth Games budget.


Attachment 2



Printed: as at 19 January 2017Review Month: DecemberDirectorate: ALLCost Centre Category: Internal;Labour;Debt Service;Operating;Capital


Attachment 2


PB_018 Budget Review - Summary for FY 2016 - 2017Printed: as at 19 January 2017Review Month: DecemberDirectorate: ALLCost Centre Category: Internal;Labour;Debt Service;Operating;Capital

City InfrastructureRevenue (101,786,103) (108,392,244) (110,116,570) (180,890) (1,543,436) (1,724,326)

Expense 311,377,097 350,399,312 351,400,362 (236,373) 1,237,423 1,001,050

Net 209,590,994 242,007,068 241,283,792 (417,263) (306,013) (723,276)

Community ServicesRevenue (87,035,096) (93,310,240) (94,676,685) 0 (1,366,445) (1,366,445)

Expense 250,200,947 268,093,393 270,109,338 338,689 1,677,256 2,015,945

Net 163,165,851 174,783,153 175,432,653 338,689 310,811 649,500

Economic Development and Major ProjectsRevenue (61,544,133) (71,262,147) (72,576,407) 0 (1,314,260) (1,314,260)

Expense 107,931,073 132,649,024 134,019,784 0 1,370,760 1,370,760

Net 46,386,940 61,386,877 61,443,377 0 56,500 56,500

Element Type 2016 - 2017Initial Budget

2016 - 2017Revised Budget

2016 - 2017Proposed Budget

2016 - 2017December Review

Recurrent Movement


Non-RecurrentMovement


Total Movement

PB_018 Budget Review - Summary City of Gold Coast-IN-CONFIDENCE Page : 1 of 3About this Report

Attachment 2

../../opendoc/openDocument.jsp?&sType=wid&sIDType=CUID&iDocID=AWAd0CiNAoJCuJN4mzY8vRk&sWindow=New&lsSBI%20Report%20Name=PB_018%20Budget%20Review%20-%20Summary

PB_018 Budget Review - Summary for FY 2016 - 2017

Gold Coast WaterRevenue (614,506,539) (624,116,701) (612,508,539) 8,750 11,599,412 11,608,162

Expense 618,392,194 624,116,701 612,508,539 (613,450) (10,994,712) (11,608,162)

Net 3,885,655 0 0 (604,700) 604,700 0

Office of the CEORevenue (95,844,616) (232,283,220) (234,752,121) 517,000 (2,985,901) (2,468,901)

Expense 64,887,297 98,105,991 98,783,213 82,440 594,782 677,222

Net (30,957,319) (134,177,229) (135,968,908) 599,440 (2,391,119) (1,791,679)

Organisational ServicesRevenue (529,853,081) (540,806,462) (539,333,992) 100,000 1,372,470 1,472,470

Expense 98,379,441 138,143,459 137,994,535 26,134 (175,058) (148,924)

Net (431,473,640) (402,663,003) (401,339,457) 126,134 1,197,412 1,323,546

Planning and EnvironmentRevenue (30,424,453) (31,938,499) (33,988,499) 0 (2,050,000) (2,050,000)

Expense 69,825,972 76,601,633 79,137,042 0 2,535,409 2,535,409

Net 39,401,519 44,663,134 45,148,543 0 485,409 485,409

Element Type 2016 - 2017Initial Budget




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Attachment 2


PB_018 Budget Review - Summary for FY 2016 - 2017Element Type 2016 - 2017

Initial Budget2016 - 2017

Revised Budget2016 - 2017

Proposed Budget2016 - 2017

December ReviewRecurrent Movement




Total Movement

Council Totals

Revenue (1,520,994,021) (1,702,109,513) (1,697,952,813) 444,860 3,711,840 4,156,700

Expense 1,520,994,021 1,688,109,513 1,683,952,813 (402,560) (3,754,140) (4,156,700)

Net 0 (14,000,000) (14,000,000) 42,300 (42,300) 0

Note: The Revised and Proposed Budget represents the Current Revised Budget and not the budget of any prior review being reported.


Attachment 2


PB_019 Budget Review - Detail for FY 2016 - 2017

Printed: as at 19 January 2017Review Month: DecemberDirectorate: ALLCost Centre Category: Internal;Labour;Debt Service;Operating;Capital

City Infrastructure

CI2510C004 - Beaches & Waterways

Revenue 0 (225,000) (225,000) 0 0 0

Expense 3,635,000 4,069,719 4,031,375 0 (38,344) (38,344)

Net 3,635,000 3,844,719 3,806,375 0 (38,344) (38,344)

Justification:($38,344) Expense Decrease. Procurement Savings September, October and November 2016.

CI2520C002 - Woongoolba FMS Structures

Revenue 0 0 0 0 0 0

Expense 208,600 357,433 357,077 0 (356) (356)

Net 208,600 357,433 357,077 0 (356) (356)

Justification:($356) Expense Decrease. Procurement Savings September, October and November 2016.

Budget Centre Element Type 2016 - 2017Initial Budget




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Total Movement

PB_019 Budget Review - Detail City of Gold Coast-IN-CONFIDENCE Page : 1 of 130About this Report

Attachment 2

../../opendoc/openDocument.jsp?&sType=wid&sIDType=CUID&iDocID=AWAd0CiNAoJCuJN4mzY8vRk&sWindow=New&lsSBI%20Report%20Name=PB_019%20Budget%20Review%20-%20Detail


City InfrastructureCI2520C003 - SQID Capital Works

Revenue 0 0 (156,512) 0 (156,512) (156,512)

Expense 511,600 684,867 840,969 0 156,102 156,102

Net 511,600 684,867 684,457 0 (410) (410)

Justification:($105,612) Revenue Increase, $105,612 Expense Increase. Callup of Tasmaster Group Pty Ltd Developer Bond to complete two bio retention basins at Coomera.

($27,273) Revenue Increase, $27,273 Expense Increase. Callup of Matas Enterprises Pty Ltd Developer Bond to complete the bio retention basin at Karingal Heights Estate in ImeldaWay, Pimpama.

($23,627) Revenue Increase, $23,627 Expense Increase. Callup of Kelband No.2 Pty Ltd Developer Bond to complete the Anna Street bio retention basin at Goldmine Road, Ormeau.

($410) Expense Decrease. Procurement Savings September, October and November 2016.

CI2520C004 - SWD Catchment Facility Capital Works

Revenue (2,000,000) (3,333,810) (3,969,850) 0 (636,040) (636,040)

Expense 12,229,084 14,964,542 15,554,607 0 590,065 590,065

Net 10,229,084 11,630,732 11,584,757 0 (45,975) (45,975)

Justification:($636,040) Revenue Increase, $636,040 Expense Increase. Recognise 30% upfront payment of Natural Disaster Resilience Program Grant from the Department of Infrastructure, LocalGovernment and Planning for Drainage works Boyd to Kitchener Street, Tugun. The total approved grant is $2,120,135 which will be claimed progressively in arrears over the 2016-17and 2017-18 financial years as works are completed.

($45,975) Expense Decrease. Procurement Savings September, October and November 2016.





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Total Movement


Attachment 2



City InfrastructureCI2530O002 - Drainage & Foreshore Assets Salaries

Revenue 0 0 0 0 0 0

Expense 2,229,048 2,014,319 1,982,872 0 (31,447) (31,447)

Net 2,229,048 2,014,319 1,982,872 0 (31,447) (31,447)


CI2530O004 - Coastal Planning and Operations

Revenue (5,600,000) (5,600,000) (5,821,400) 0 (221,400) (221,400)

Expense 15,768,358 15,966,905 16,157,676 0 190,771 190,771

Net 10,168,358 10,366,905 10,336,276 0 (30,629) (30,629)

Justification:($221,400) Revenue Increase, $221,400 Expense Increase. Recognise 30% upfront payment of Natural Disaster Resilience Program Grant from the Department of Infrastructure, LocalGovernment and Planning for Narrowneck Reef Renewal. The total approved grant is $738,000 which will be claimed progressively in arrears over the 2016-17 and 2017-18 financialyears as works are completed.






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Attachment 2



City InfrastructureCI2540O001 - Assets Mgmt & Tech Support Salaries

Revenue 0 0 0 0 0 0

Expense 1,718,303 1,706,722 1,703,998 0 (2,724) (2,724)

Net 1,718,303 1,706,722 1,703,998 0 (2,724) (2,724)


CI2540O003 - Drainage & Foreshore Asset Systems

Revenue 0 0 0 0 0 0

Expense 538,560 504,660 489,543 0 (15,117) (15,117)

Net 538,560 504,660 489,543 0 (15,117) (15,117)


CI2550O003 - SQID Maintenance

Revenue 0 0 0 0 0 0

Expense 1,908,866 1,908,866 1,908,255 0 (611) (611)

Net 1,908,866 1,908,866 1,908,255 0 (611) (611)






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Attachment 2



City InfrastructureCI2550O004 - SWD Catchment Facility Maintenance

Revenue (18,000) (18,000) (18,000) 0 0 0

Expense 5,099,947 5,099,947 5,097,445 0 (2,502) (2,502)

Net 5,081,947 5,081,947 5,079,445 0 (2,502) (2,502)


CI2550O005 - Beach Facility Maintenance

Revenue 0 0 0 0 0 0

Expense 2,523,608 2,511,023 2,509,161 0 (1,862) (1,862)

Net 2,523,608 2,511,023 2,509,161 0 (1,862) (1,862)


CI2550O006 - Tidal Waterway Operations

Revenue (40,700) (40,700) (40,700) 0 0 0

Expense 6,425,217 6,414,767 6,403,018 0 (11,749) (11,749)

Net 6,384,517 6,374,067 6,362,318 0 (11,749) (11,749)






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Attachment 2



City InfrastructureCI2550O007 - Non-Tidal Waterway Operations

Revenue 0 0 0 0 0 0

Expense 1,493,391 1,493,391 1,490,956 0 (2,435) (2,435)

Net 1,493,391 1,493,391 1,490,956 0 (2,435) (2,435)


CI2580C001 - Kerb & Channel Replacement Program

Revenue 0 0 0 0 0 0

Expense 2,152,341 2,226,618 2,217,457 0 (9,161) (9,161)

Net 2,152,341 2,226,618 2,217,457 0 (9,161) (9,161)


CI2580C002 - Road Rehab & Reseals (IDG)

Revenue (7,370,000) (7,439,700) (7,439,700) 0 0 0

Expense 19,056,511 19,043,952 18,992,270 0 (51,682) (51,682)

Net 11,686,511 11,604,252 11,552,570 0 (51,682) (51,682)






RecurrentMovement




Total Movement


Attachment 2



City InfrastructureCI2580C003 - Bridge & Major Culvert Asset Renewal

Revenue 0 0 0 0 0 0

Expense 6,766,300 8,141,794 8,124,030 0 (17,764) (17,764)

Net 6,766,300 8,141,794 8,124,030 0 (17,764) (17,764)


CI2580C004 - Retaining Walls & Landslip Capital Works

Revenue 0 0 0 0 0 0

Expense 800,000 1,054,117 1,050,601 0 (3,516) (3,516)

Net 800,000 1,054,117 1,050,601 0 (3,516) (3,516)


CI2580C005 - Extractive Industries

Revenue 0 0 0 0 0 0

Expense 1,497,000 1,497,000 1,495,391 0 (1,609) (1,609)

Net 1,497,000 1,497,000 1,495,391 0 (1,609) (1,609)






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Attachment 2



City InfrastructureCI2580C006 - Road Reconstruction

Revenue (1,300,000) (1,300,000) (1,475,000) 0 (175,000) (175,000)

Expense 6,750,000 7,139,190 7,313,990 0 174,800 174,800

Net 5,450,000 5,839,190 5,838,990 0 (200) (200)

Justification:($175,000) Revenue Increase, $175,000 Expense Increase. Transfer of funds from Commonwealth Games Reserve for Surf Parade to First Avenue, Broadbeach Road Reconstructionworks completed this Financial Year.


CI2580C007 - Pathways Asset Renewal

Revenue 0 0 0 0 0 0

Expense 200,000 323,442 323,138 0 (304) (304)

Net 200,000 323,442 323,138 0 (304) (304)






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Total Movement


Attachment 2



City InfrastructureCI2580C008 - Disability Access Program

Revenue 0 0 0 0 0 0

Expense 1,290,000 1,311,326 1,309,698 0 (1,628) (1,628)

Net 1,290,000 1,311,326 1,309,698 0 (1,628) (1,628)


CI2580O005 - Road Maintenance

Revenue (20,000) (20,000) (20,000) 0 0 0

Expense 13,783,051 13,774,215 13,744,639 0 (29,576) (29,576)

Net 13,763,051 13,754,215 13,724,639 0 (29,576) (29,576)


CI2580O006 - Bridges & Major Culverts Maintenance

Revenue 0 0 0 0 0 0

Expense 2,275,601 2,275,601 2,272,882 0 (2,719) (2,719)

Net 2,275,601 2,275,601 2,272,882 0 (2,719) (2,719)






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Attachment 2



City InfrastructureCI2600C001 - Urban Precinct Streetscape (IDG)

Revenue 0 0 0 0 0 0

Expense 0 465,777 465,097 0 (680) (680)

Net 0 465,777 465,097 0 (680) (680)


CI2600O001 - Urban Precinct Asset Maintenance

Revenue (2,138,663) (2,148,663) (2,148,663) 0 0 0

Expense 4,788,212 4,762,691 4,762,563 0 (128) (128)

Net 2,649,549 2,614,028 2,613,900 0 (128) (128)


CI2600O002 - Urban Precincts Cleaning

Revenue 0 0 0 0 0 0

Expense 2,201,225 2,418,470 2,361,150 (57,320) 0 (57,320)

Net 2,201,225 2,418,470 2,361,150 (57,320) 0 (57,320)






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Attachment 2



City InfrastructureCI2760O005 - Project Management Admin

Revenue 0 0 0 0 0 0

Expense 0 0 (53,643) (19,943) (33,700) (53,643)

Net 0 0 (53,643) (19,943) (33,700) (53,643)


CI2770O002 - GCWA Wavebreak Island

Revenue (145,800) (145,800) (162,310) (20,890) 4,380 (16,510)

Expense 145,800 145,800 162,310 20,890 (4,380) 16,510

Net 0 0 0 0 0 0

Justification:($16,510) Revenue Increase, $16,510 Expense Increase. Contribution from Gold Coast Waterways Authority for Landscape works at Moondarewa Spit (Southport Seaway).

CI2770O004 - Public Litter Bins

Revenue 0 (100,000) (100,000) 0 0 0

Expense 2,658,660 2,743,186 2,742,059 0 (1,127) (1,127)

Net 2,658,660 2,643,186 2,642,059 0 (1,127) (1,127)






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Attachment 2



City InfrastructureCI3200O003 - Design Projects

Revenue 0 0 0 0 0 0

Expense 259,200 258,837 257,025 0 (1,812) (1,812)

Net 259,200 258,837 257,025 0 (1,812) (1,812)


CI3200O006 - Procurement Savings ID

Revenue 0 0 0 0 0 0

Expense 0 0 (1,824) 0 (1,824) (1,824)

Net 0 0 (1,824) 0 (1,824) (1,824)


CI3210C001 - Computer Hardware/Software > $10000

Revenue (106,300) (106,300) (106,300) 0 0 0

Expense 108,700 159,932 159,690 0 (242) (242)

Net 2,400 53,632 53,390 0 (242) (242)






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Attachment 2



City InfrastructureCI3260C002 - Contributions - Local Area Works

Revenue 0 (7,018) (7,018) 0 0 0

Expense 3,479,500 3,486,518 3,490,444 0 3,926 3,926

Net 3,479,500 3,479,500 3,483,426 0 3,926 3,926

Justification:$3,926 Expense Increase. Transfer of unspent funds for CIP Project for decking at James St, Burleigh Heads back to Local Area Works Division 12.

Inter Directorate Transfer - $5,000. Local Area Works Division 9 contribution for renovations at the Council Office at 4 Swan Lane, Mudgeeraba. G16.0524.004.

CI3260C008 - Roadworks - Local Area Works

Revenue 0 0 0 0 0 0

Expense 2,616,300 8,076,607 8,096,607 0 20,000 20,000

Net 2,616,300 8,076,607 8,096,607 0 20,000 20,000

Justification:$20,000 Expense Increase. Active Transport Infrastructure contribution to Local Area Works Division 13 Project to construct two concrete footpaths at Twenty Third Avenue, Palm Beach.CI16.1006.002.





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Attachment 2



City InfrastructureCI3350O001 - DMU - Operations

Revenue 0 (153,996) (153,996) 0 0 0

Expense 536,636 659,584 657,883 0 (1,701) (1,701)

Net 536,636 505,588 503,887 0 (1,701) (1,701)


CI3360O002 - Labour - Transport & Traffic

Revenue (1,045,060) 0 0 0 0 0

Expense 10,476,700 1,568,903 1,566,825 0 (2,078) (2,078)

Net 9,431,640 1,568,903 1,566,825 0 (2,078) (2,078)


CI3400O001 - Traffic Administration

Revenue (160,000) (160,000) (320,000) (160,000) 0 (160,000)

Expense 0 0 0 0 0 0

Net (160,000) (160,000) (320,000) (160,000) 0 (160,000)

Justification:($160,000) Revenue Increase. Increase in anticipated revenue for Temporary Road Closures from original estimate of $160,000 to a revised budget of $320,000 as a result of higher thananticipated developer activity.





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Attachment 2



City InfrastructureCI3410O007 - Transport Network Management Labour

Revenue 0 0 0 0 0 0

Expense 0 2,711,128 2,704,168 0 (6,960) (6,960)

Net 0 2,711,128 2,704,168 0 (6,960) (6,960)


CI3420O001 - Road Signs & Linemarking

Revenue 0 0 0 0 0 0

Expense 4,678,982 4,676,570 4,671,968 0 (4,602) (4,602)

Net 4,678,982 4,676,570 4,671,968 0 (4,602) (4,602)


CI3460C001 - Public Transport Infrastructure

Revenue (530,873) (1,416,735) (1,436,735) 0 (20,000) (20,000)

Expense 2,190,425 2,514,166 2,523,755 0 9,589 9,589

Net 1,659,552 1,097,431 1,087,020 0 (10,411) (10,411)

Justification:($20,000) Revenue Increase, $20,000 Expense Increase. Local Area Works Division 4 contribution to the bus stop upgrade and path connection on Brisbane Rd, Arundel. G16.1031.011.






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City InfrastructureCI3460C002 - Active Transport Infrastructure

Revenue (3,747,146) (5,071,347) (5,096,347) 0 (25,000) (25,000)

Expense 9,776,460 16,473,935 16,460,157 0 (13,778) (13,778)

Net 6,029,314 11,402,588 11,363,810 0 (38,778) (38,778)

Justification:($25,000) Revenue Increase, $25,000 Expense Increase. Local Area Works Division 6 contribution for the upgraded access to the Broadwater Parklands. G16.1031.011.

($20,000) Expense Decrease. Active Transport Infrastructure contribution to Local Area Works Division 13 Project to construct two concrete footpaths at Twenty Third Avenue, PalmBeach. CI16.1006.002.


Reschedule of Capital Works $775,500. Distribution of funding required to meet the needs of the Active Transport Program following development of estimates for Kropp Park GreenBridge and Path Connections and Billinghurst Shared Path. The funding is derived from the reprovision of Southport-Burleigh Road Underpass Project that was previously deferred. Referagenda item City Infrastructure meeting.





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City InfrastructureCI3460C004 - Roads Infrastructure

Revenue (20,920,238) (22,376,727) (22,620,652) 0 (243,925) (243,925)

Expense 18,690,053 21,994,155 22,243,995 0 249,840 249,840

Net (2,230,185) (382,572) (376,657) 0 5,915 5,915

Justification:($279,864) Revenue Increase, $279,864 Expense Increase. Transfer of PIPTRLO unconstrained Trust funds for Helensvale Road, Monterey Keys upgrade stage 2.

$35,939 Revenue Decrease. Transfer Infrastructure revenue for Eggersdorf Rd from Roads Infrastructure to Land Acquisitions to align with the expense budget.


Reschedule of Capital Works $1,916,657. Distribution of funds in the Road Infrastructure Program is required to balance a number of projects that require additional funding. ReferAgenda Item City Infrastructure Meeting. These include Burnside Road Stage 1, Helensvale Road Stage 2 and Robert Turpin Roundabout. Funding is derived from High StreetScarborough Street Upgrade and Napper Road Arundel Drive Signal Upgrade, both of which are to be delivered over two Financial Years. Refer Agenda Item City Infrastructure meeting.

CI3460C005 - Traffic Systems Infrastructure (New Cap)

Revenue 0 (555,000) (555,000) 0 0 0

Expense 3,198,759 5,677,400 5,669,624 0 (7,776) (7,776)

Net 3,198,759 5,122,400 5,114,624 0 (7,776) (7,776)






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City InfrastructureCI3460C008 - Road Safety Barriers

Revenue 0 0 0 0 0 0

Expense 580,000 643,676 643,640 0 (36) (36)

Net 580,000 643,676 643,640 0 (36) (36)


CI3460C009 - Roadworks Property Acquisitions

Revenue 0 0 (35,939) 0 (35,939) (35,939)

Expense 0 1,561,640 1,561,626 0 (14) (14)

Net 0 1,561,640 1,525,687 0 (35,953) (35,953)

Justification:($35,939) Revenue Increase. Transfer Infrastructure revenue for Eggersdorf Rd from Roads Infrastructure to Land Acquisitions to align with the expense budget.


CI3460C010 - Parking Technology Capital

Revenue 0 0 0 0 0 0

Expense 872,625 1,740,020 1,739,688 0 (332) (332)

Net 872,625 1,740,020 1,739,688 0 (332) (332)






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City InfrastructureCI3460O001 - Infrastructure Planning

Revenue 0 0 0 0 0 0

Expense 0 1,151,315 1,149,003 0 (2,312) (2,312)

Net 0 1,151,315 1,149,003 0 (2,312) (2,312)


CI3470O002 - Public Transport

Revenue (1,195,893) (1,195,893) (1,195,893) 0 0 0

Expense 2,260,000 4,395,920 4,391,214 0 (4,706) (4,706)

Net 1,064,107 3,200,027 3,195,321 0 (4,706) (4,706)


CI3470O003 - Active Transport

Revenue (610,000) (610,000) (610,000) 0 0 0

Expense 700,000 777,488 776,144 0 (1,344) (1,344)

Net 90,000 167,488 166,144 0 (1,344) (1,344)






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City InfrastructureCI3470O004 - Roads & Data Management

Revenue (600,000) (600,000) (600,000) 0 0 0

Expense 1,100,900 1,358,467 1,348,254 0 (10,213) (10,213)

Net 500,900 758,467 748,254 0 (10,213) (10,213)


CI3480O003 - Travel Behaviour Change Program

Revenue (400,000) (400,000) (434,000) 0 (34,000) (34,000)

Expense 837,500 837,327 1,031,327 160,000 34,000 194,000

Net 437,500 437,327 597,327 160,000 0 160,000

Justification:($24,000) Revenue Increase, $24,000 Expense Increase. Department of Transport and Main Roads (TMR) "Hinterland motorcycle safety campaign" Grant as per signed GrantAgreement.

($10,000) Revenue Increase, $10,000 Expense Increase. Department of Transport and Main Roads (TMR) "Road Safety Guide for Visitors - Gold Coast" Grant as per signed Deed ofAgreement.

$160,000 Expense Increase. Funding required to maintain and rotate 35 City funded Speed Awareness Devices. 14 of these devices need to be installed with 3G capability. Thesedevices are situated in various locations as agreed with Councillors.





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City InfrastructureCI3510O001 - Directors Office Labour

Revenue 0 0 0 0 0 0

Expense 745,049 744,976 744,765 0 (211) (211)

Net 745,049 744,976 744,765 0 (211) (211)


CI3520O001 - Program Office

Revenue 0 0 0 0 0 0

Expense 904,540 902,733 899,819 0 (2,914) (2,914)

Net 904,540 902,733 899,819 0 (2,914) (2,914)


CI3530O001 - Strategic Planning & Improvement - Op

Revenue 0 0 0 0 0 0

Expense 3,758,958 3,987,866 3,784,172 (340,000) 136,306 (203,694)

Net 3,758,958 3,987,866 3,784,172 (340,000) 136,306 (203,694)

Justification:($198,340) Expense Decrease. Transfer of 4 Contracts Administration FTEs from Strategic Planning & Improvement to Legal Services as per CEO approval.






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Total for Directorate: City InfrastructurePB_019 Budget Review - Detail City of Gold Coast-IN-CONFIDENCE Page : 21 of 130About this Report

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City Infrastructure





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Revenue (101,786,103) (108,392,244) (110,116,570) (180,890) (1,543,436) (1,724,326)

Expense 311,377,097 350,399,312 351,400,362 (236,373) 1,237,423 1,001,050

Net 209,590,994 242,007,068 241,283,792 (417,263) (306,013) (723,276)

Total for Directorate: City Infrastructure


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Community Services

CS4000O002 - Office Furniture and Equipment

Revenue 0 0 0 0 0 0

Expense 9,600 9,600 17,467 (2,133) 10,000 7,867

Net 9,600 9,600 17,467 (2,133) 10,000 7,867

Justification:($2,133 ) Expenditure DecreaseTransfer of budget to new budget centre CS4060O001 Workplace Health & Safety Unit. A new Responsibility Centre, CS4060 Workplace Health & Safety Unit, has been created to reflectthe revised responsibilities and budget management for WH&S.

$10,000 Expenditure IncreaseBudget increase required to cover the purchase of ICT equipment for WHS team and Directorate review.





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Community ServicesCS4000O004 - Directorate Support Unit - Operations

Revenue 0 0 0 0 0 0

Expense 1,492,379 1,698,908 1,689,328 (259,580) 250,000 (9,580)

Net 1,492,379 1,698,908 1,689,328 (259,580) 250,000 (9,580)

Justification:($9,580) Expenditure Decrease

$250,000 Expenditure Increase - Community Services Directorate budget for implementation of the corporate knowledge management system, Livepro. This consolidated directoratebudget has been funded by savings and reallocations within Community Services Branch budgets based on the impact of the LGP system on the respective branches.

$150,000 Expenditure Increase - Transfer of $150,000 from OCEO to support the Community Services Directorate Review to cover staffing cost of Manager Directorate Support andancillary costs.

($409,580) Expenditure Decrease - transfer of 4 labour positions and related budgets to the new budget centre CS4060O001 Workplace Health & Safety Unit. A new ResponsibilityCentre, CS4060 Workplace Health & Safety Unit, has been created to reflect the revised responsibilities and budget management for WH&S.

CS4000O010 - External Training Overhead

Revenue 0 0 0 0 0 0

Expense 11,115 11,115 8,645 (2,470) 0 (2,470)

Net 11,115 11,115 8,645 (2,470) 0 (2,470)


Transfer of staff training budgets for Community Services Workplace Health & Safety staff to a new budget centre CS4060O001 to facilitate appropriate management of budget andexpenditures.





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Community ServicesCS4040O008 - CCTV Camera Program (Non-Levy)

Revenue 0 0 (3,605) 0 (3,605) (3,605)

Expense 369,780 279,780 283,385 0 3,605 3,605

Net 369,780 279,780 279,780 0 0 0

Justification:($3,605) Expenditure Decrease $3,605 Expenditure Increase

Recognition of expenditure and LAW funding in line with Council resolution G16.1115.029 which approved the transfer and use of Division 5 funds to the Mobile CCTV Camera Program(non-levy) at a cost of $3,605, for pro-rata 7 months of 2016-17. Allocation was in relation to operational costs of monitoring 2 additional fixed CCTV cameras at Park Lake ParkMaudsland.

CS4050C002 - Safe & Liveable Communities - Capital

Revenue 0 (1,290,000) (1,670,000) 0 (380,000) (380,000)

Expense 0 1,335,792 1,715,792 0 380,000 380,000

Net 0 45,792 45,792 0 0 0

Justification:($380,000) Revenue Increase $380,000 Expenditure Increase

Increase of $380,000 in Commonwealth Games project 31164 CWG Safety Camera Network and corresponding increase of $380,000 in Commonwealth Games reserve funding to alignwith approved GC2018 cost plan.





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Community ServicesCS4050O001 - Community Safety Operations

Revenue (1,231,000) (441,000) (291,000) 0 150,000 150,000

Expense 1,849,170 1,072,070 882,070 0 (190,000) (190,000)

Net 618,170 631,070 591,070 0 (40,000) (40,000)

Justification:$150,000 Revenue Decrease ($190,000) Expenditure Decrease

$150,000 Expenditure and Revenue Decrease - in Commonwealth Games operational project 31163 CWG Council Asset and Security and associated Commonwealth Games reservefunding in line with current Games funding plan.

$40,000 Expenditure Decrease in Community Safety program to fund Broadwater Parklands CCTV (project 31293) in Parks and Recreation Services (CS4150C005)


Revenue 0 0 0 0 0 0

Expense 36,770 36,770 16,770 0 (20,000) (20,000)

Net 36,770 36,770 16,770 0 (20,000) (20,000)


Branch contribution towards implementation of corporate knowledge management system, Livepro. This funding is consolidated at a directorate level in budget centre CS4000O004Directorate Support Unit Operations.





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Community ServicesCS4060O001 - Workplace Health and Safety Unit

Revenue 0 0 0 0 0 0

Expense 0 0 625,993 615,993 10,000 625,993

Net 0 0 625,993 615,993 10,000 625,993

Justification:$625,993 Expenditure Increase

Establishment of new Workplace Health and Safety Unit budget centre to reflect revised responsibilities and budget management for WHS. The budget has been fully funded by transfersfrom Community Services, Organisation Services and OCEO budgets and does not represent any overall increase to approved budgets.





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Community ServicesCS4100C001 - Computer Hardware/Software > $10000

Revenue 0 0 0 0 0 0

Expense 180,498 730,900 1,104,886 0 373,986 373,986

Net 180,498 730,900 1,104,886 0 373,986 373,986


$377,500 Expenditure Increase - for RFID Self-checkout upgrade and Runaway Bay Library RFID automated returns implementation (project 30213 Hardware/Software Customers)

An amount of $120,000 has been allocated for hardware and software upgrade of up to 27 customer self-checkout units across the library service. These machines are out of warrantyand require upgrading.

An allocation of $250,000 for implementation of a RFID automated returns and 5 bin sorter at Runaway Bay Library. Runaway Bay Library transacted 516,467 check-ins during 2015-16,making it the third busiest receiving library across the service. The staff assisted check-ins at Runaway Bay per FTE was 37,280 as compared to the service wide average of 11,485.

These works are funded by a reallocation of State Government grant funds from the City Library Collection Services budget, approved by the State Government as an appropriate use ofgrant funds.

($3,514) Expenditure Decrease - Labour Hire Contract LG314/411/11/129T Procurement Savings.





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Community ServicesCS4100C003 - Library Services - Capital

Revenue 0 0 0 0 0 0

Expense 645,827 1,493,965 1,153,895 0 (340,070) (340,070)

Net 645,827 1,493,965 1,153,895 0 (340,070) (340,070)


($340,000) Expenditure Decrease - due to urgent replacement of air conditioning at Robina Library/Auditorium budget (project 30873 Robina Renewal Program), funding of $340,000 isbeing transferred to Robina Community Centres Renewal Works project 31178. These funds will be consolidated within the Community Centres capital budget to meet the budgetedamount noted in the tendered response.

($70) Expenditure Decrease - Labour Hire Contract LG314/411/11/129T Procurement Savings.

CS4100O014 - Collection Services Libraries

Revenue (2,044,170) (2,098,239) (2,098,239) 0 0 0

Expense 7,471,250 7,515,319 7,112,819 0 (402,500) (402,500)

Net 5,427,080 5,417,080 5,014,580 0 (402,500) (402,500)


($25,000) Expenditure Decrease - branch contribution towards implementation of the corporate knowledge management system, Livepro. Funding has been consolidated at a directoratelevel in budget centre CS4000O004 Directorate Support Unit Operations.

($377,500) Expenditure Decrease - this budget reduction reflects a reallocation of State Library grant funds to the Runaway Bay Library Renewal program for sorter and upgrade to allcustomer self serve machines. These works have been approved as an appropriate allocation of grant funds.





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Community ServicesCS4150C003 - Public Conveniences Construction

Revenue (800,000) (800,000) (800,000) 0 0 0

Expense 800,000 800,000 820,000 0 20,000 20,000

Net 0 0 20,000 0 20,000 20,000


An combined allocation of $20,000 is required for the 2 public amenities at the Broadwater Parklands to install holding tanks and pumps to connect into the existing rising sewer main(works not included in original estimates)

CS4150C005 - Major Open Space Development

Revenue (1,040,000) (340,000) (984,640) 0 (644,640) (644,640)

Expense 1,408,614 827,445 1,510,532 0 683,087 683,087

Net 368,614 487,445 525,892 0 38,447 38,447

Justification:($644,640) Revenue Increase, $683,087 Expenditure Increase

Broadwater Parklands CCTV and Lighting Project - Revenue $684,640, Expenditure Increase $684,640The City has been advised that a State Government grant of $614,640 for the installation of lighting and CCTV in the Broadwater Parklands is available. This grant represents a 60%subsidy on the estimated total project cost of $1,024,400. Based on cash flow forecasts the City’s total contribution of $409,760 will likely be required over two financial years. Funding of$30,000 has also been committed from the Commonwealth Games budget and $40,000 is allocated from the Safe and Liveable Communities Community Safety budget. The additionalfunding of $339,760 will be sought as part of the 2017-18 budget process.

The project includes the installation of lighting and CCTV in the Broadwater Parklands southern precinct (including coverage of the pathway connection to the G-Link station throughMatron and Sister Higman Park) and the mid-section (Northern Pavilion Building). The project will address concerns raised by Queensland Police regarding lighting and CCTV black spotsfollowing numerous incidents over the last 12 months in and around the immediate vicinity of the Broadwater Parklands including the Southport CBD; and it is a key recommendation of arecent safety audit of GC2018 event precincts. This project will dramatically improve the level of surveillance, public safety and reduce the opportunity for crimes to occur and will becritical for patron safety and city reputation during GC2018.

Park Improvements - $90,000 Expenditure and Revenue IncreaseTransfer to parent project budgets previously allocated to disabled adaptation works and forward planning works

Disabled Access Program - $40,000 Expenditure and Revenue DecreaseTransfer to parent Park improvements project budgets previously allocated to Disabled Adaptation works

Forward Plan Design - $145,000 Expenditure and $50,000 Revenue DecreaseTransfer from project to specific design projects Runaway Toilet Athletics Toilet Design $40,000, Damian Leeding Memorial Park Master Plan $40,000, BMXA Andrews Reserve MCU$15,000, and transfer to Park improvements project budget $50,000 (expenditure and revenue) for funds previously allocated to Forward Panning works

Runaway Bay Toilet Design - $40,000 Expenditure IncreaseFunding allocation from the Forward Planning Budget for design works to address structural issues at the ageing facility

Damian Leeding Memorial Park Master Plan - $40,000 Expenditure IncreaseThis funding allocation from the Forward Planning budget supported planning and design works for the park

BMXA Andrews Reserve MCU - $15,000 Expenditure IncreaseAllocation of funds from Forward Planning budget to undertake planning and design works

($1,553) Expenditure DecreaseLabour Hire contract LG314/411/11/129T and Intermittent Hire of Heavy and Minor Plant contract LG314/411/14/074 Procurement Savings.





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Community ServicesJustification:

($644,640) Revenue Increase, $683,087 Expenditure Increase

Broadwater Parklands CCTV and Lighting Project - Revenue $684,640, Expenditure Increase $684,640The City has been advised that a State Government grant of $614,640 for the installation of lighting and CCTV in the Broadwater Parklands is available. This grant represents a 60%subsidy on the estimated total project cost of $1,024,400. Based on cash flow forecasts the City’s total contribution of $409,760 will likely be required over two financial years. Funding of$30,000 has also been committed from the Commonwealth Games budget and $40,000 is allocated from the Safe and Liveable Communities Community Safety budget. The additionalfunding of $339,760 will be sought as part of the 2017-18 budget process.

The project includes the installation of lighting and CCTV in the Broadwater Parklands southern precinct (including coverage of the pathway connection to the G-Link station throughMatron and Sister Higman Park) and the mid-section (Northern Pavilion Building). The project will address concerns raised by Queensland Police regarding lighting and CCTV black spotsfollowing numerous incidents over the last 12 months in and around the immediate vicinity of the Broadwater Parklands including the Southport CBD; and it is a key recommendation of arecent safety audit of GC2018 event precincts. This project will dramatically improve the level of surveillance, public safety and reduce the opportunity for crimes to occur and will becritical for patron safety and city reputation during GC2018.

Park Improvements - $90,000 Expenditure and Revenue IncreaseTransfer to parent project budgets previously allocated to disabled adaptation works and forward planning works

Disabled Access Program - $40,000 Expenditure and Revenue DecreaseTransfer to parent Park improvements project budgets previously allocated to Disabled Adaptation works

Forward Plan Design - $145,000 Expenditure and $50,000 Revenue DecreaseTransfer from project to specific design projects Runaway Toilet Athletics Toilet Design $40,000, Damian Leeding Memorial Park Master Plan $40,000, BMXA Andrews Reserve MCU$15,000, and transfer to Park improvements project budget $50,000 (expenditure and revenue) for funds previously allocated to Forward Panning works

Runaway Bay Toilet Design - $40,000 Expenditure IncreaseFunding allocation from the Forward Planning Budget for design works to address structural issues at the ageing facility

Damian Leeding Memorial Park Master Plan - $40,000 Expenditure IncreaseThis funding allocation from the Forward Planning budget supported planning and design works for the park

BMXA Andrews Reserve MCU - $15,000 Expenditure IncreaseAllocation of funds from Forward Planning budget to undertake planning and design works


CS4150C010 - Asset Replacement Renewal & Renovation





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Community ServicesRevenue 0 (212,330) (407,330) 0 (195,000) (195,000)

Expense 7,363,810 8,450,059 9,290,419 0 840,360 840,360

Net 7,363,810 8,237,729 8,883,089 0 645,360 645,360

Justification:$840,360 Expenditure Increase, $195,000 Revenue Increase


The September budget review advised that the Lions Head Park Slope Stabilisation Project shortfall was approximately $1.3 million, and $500,000 of that amount was allocated in theSeptember review. Following significant clarification of various matters the tender has now been awarded for the project and the previously advised $800,000 (including almost $430,000in contingencies) will be required this financial year to complete the project. This will bring the revised budget this financial year to $4,629,009. The contractor’s revised tender programnow has works scheduled for completion in May 2017. This is a positive outcome as the expedited program is approximately $1 million less than the previous 28 week program thatspanned 2 financial years. This cost reduction continues the significant costs avoided through reducing the size of the catch fence and adjustments to mesh areas that have reduced theamount of rock anchoring.

As previously advised it should be noted that the costs do not include the additional works required behind Santorini by the Sea, within Lions Head Park. To undertake the work Councilrequires access through Santorini by the Sea and Council is currently taking all reasonable action to gain such access. It is proposed that required funding be considered in the 2017-18and 2018-19 years (assumed $1.25 million).

Broadwater Parklands Pathways - $145,000 Expenditure and Revenue IncreaseConsolidation of Parks renewal budget and EDMP Broadwater Parklands Stage 3 budget within single project for pathways works within the parklands.

Maid of Sker - $128,000 Expenditure DecreaseThe restoration project resulted in a number of savings. The vessel once partly dismantled and stripped revealed less requirement for extensive restoration efforts on particularcomponents then initially anticipated when establishing its budget

Hot Water Units - $100,000 Expenditure IncreaseTransfer of funds approved for hot water unit replacements previously held within the BBQ replacement project

BBQ Replacements - $100,000 Expenditure DecreaseTransfer of funds approved for hot water unit replacements held within the BBQ replacement project

Viney Skatepark Upgrade - $50,000 Expenditure Increase/Revenue IncreaseRecognition of $50,00 LAW contribution to the Viney Park Skatepark project

Pizzey Park Netball Upgrade - $35,000 Expenditure Increase/Expenditure DecreaseTransfer of funds from Hardcourt Replacements parent project to a Pizzey Park netball courts project to respond to issues with cracked courts and subsequent trip hazards

Neddy Harper Toilet - ($14,311) Expenditure DecreaseProject completed and funds transferred to other amenity works (projects 31056 CWG Adventure Playground Amenity #1and 31169 CWG Aqua Splash Amenity #3)

Public Convenience Refurbishments - ($5,689) Expenditure DecreaseTransfer from parent project to Amenity project 31056 CWG Adventure Playground Amenity #1






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Community ServicesJustification:

$840,360 Expenditure Increase, $195,000 Revenue Increase


The September budget review advised that the Lions Head Park Slope Stabilisation Project shortfall was approximately $1.3 million, and $500,000 of that amount was allocated in theSeptember review. Following significant clarification of various matters the tender has now been awarded for the project and the previously advised $800,000 (including almost $430,000in contingencies) will be required this financial year to complete the project. This will bring the revised budget this financial year to $4,629,009. The contractor’s revised tender programnow has works scheduled for completion in May 2017. This is a positive outcome as the expedited program is approximately $1 million less than the previous 28 week program thatspanned 2 financial years. This cost reduction continues the significant costs avoided through reducing the size of the catch fence and adjustments to mesh areas that have reduced theamount of rock anchoring.

As previously advised it should be noted that the costs do not include the additional works required behind Santorini by the Sea, within Lions Head Park. To undertake the work Councilrequires access through Santorini by the Sea and Council is currently taking all reasonable action to gain such access. It is proposed that required funding be considered in the 2017-18and 2018-19 years (assumed $1.25 million).

Broadwater Parklands Pathways - $145,000 Expenditure and Revenue IncreaseConsolidation of Parks renewal budget and EDMP Broadwater Parklands Stage 3 budget within single project for pathways works within the parklands.

Maid of Sker - $128,000 Expenditure DecreaseThe restoration project resulted in a number of savings. The vessel once partly dismantled and stripped revealed less requirement for extensive restoration efforts on particularcomponents then initially anticipated when establishing its budget

Hot Water Units - $100,000 Expenditure IncreaseTransfer of funds approved for hot water unit replacements previously held within the BBQ replacement project

BBQ Replacements - $100,000 Expenditure DecreaseTransfer of funds approved for hot water unit replacements held within the BBQ replacement project

Viney Skatepark Upgrade - $50,000 Expenditure Increase/Revenue IncreaseRecognition of $50,00 LAW contribution to the Viney Park Skatepark project

Pizzey Park Netball Upgrade - $35,000 Expenditure Increase/Expenditure DecreaseTransfer of funds from Hardcourt Replacements parent project to a Pizzey Park netball courts project to respond to issues with cracked courts and subsequent trip hazards

Neddy Harper Toilet - ($14,311) Expenditure DecreaseProject completed and funds transferred to other amenity works (projects 31056 CWG Adventure Playground Amenity #1and 31169 CWG Aqua Splash Amenity #3)

Public Convenience Refurbishments - ($5,689) Expenditure DecreaseTransfer from parent project to Amenity project 31056 CWG Adventure Playground Amenity #1


CS4150O005 - Park Facilities Repairs

Revenue 0 0 0 0 0 0

Expense 9,800,654 9,724,551 9,720,901 0 (3,650) (3,650)

Net 9,800,654 9,724,551 9,720,901 0 (3,650) (3,650)

Justification:(3,650) Expenditure Decrease

Labour Hire contract LG314/411/11/129T and Intermittent Hire of Heavy and Minor Plant contract LG314/411/14/074 Procurement Savings.





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Community ServicesCS4150O013 - Southport B/water Parklands Operations

Revenue (408,600) (443,600) (443,600) 0 0 0

Expense 2,437,980 2,930,591 2,924,876 0 (5,715) (5,715)

Net 2,029,380 2,486,991 2,481,276 0 (5,715) (5,715)



CS4150O026 - Botanic Gardens Operations

Revenue 0 0 0 0 0 0

Expense 843,190 843,190 841,996 0 (1,194) (1,194)

Net 843,190 843,190 841,996 0 (1,194) (1,194)







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Community ServicesCS4150O030 - Light Rail Corridor Landscape Estate

Revenue 0 0 0 0 0 0

Expense 567,582 567,582 521,982 (45,600) 0 (45,600)

Net 567,582 567,582 521,982 (45,600) 0 (45,600)

Justification:$45,600 Expenditure Decrease

Transfer of supervision element of maintenance labour budget to dedicated supervision cost centre in CS4360O011.

CS4150O032 - Parks and Landscape

Revenue 0 (141,500) (141,500) 0 0 0

Expense 16,440,835 16,630,192 16,589,834 (30,000) (10,358) (40,358)

Net 16,440,835 16,488,692 16,448,334 (30,000) (10,358) (40,358)

Justification:(40,358) Expenditure Decrease

($10,358) Expenditure Decrease - Labour Hire contract LG314/411/11/129T and Intermittent Hire of Heavy and Minor Plant contract LG314/411/14/074 Procurement Savings.

($30,000) Expenditure Decrease - Transfer of supervision element of maintenance labour budget to dedicated supervision cost centre in CS4360O011.





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Community ServicesCS4160O002 - Coombabah Nursery Operations

Revenue 0 0 0 0 0 0

Expense (81,650) (80,193) (80,193) 0 0 0

Net (81,650) (80,193) (80,193) 0 0 0

Justification:Within this budget centre, adjustments of $149,700 have been made to internal nursery sales and its corresponding expenditure budget to recognise internal nursery sales for the 6 monthperiod July to December 2016. Internal nursery sales are treated as a negative expense in the finance system, which results in these 2 adjustments netting to nil at the budget centrelevel for this review.

The revised internal nursery sales budget after the December budget review will be $714,800 and the revised expenditure budget will be $634,607, which provides the net result of$80,193 in this budget.

CS4170O010 - Propagation/Translocation Numinbah Cons

Revenue 0 0 (45,700) 0 (45,700) (45,700)

Expense 0 0 45,700 0 45,700 45,700

Net 0 0 0 0 0 0

Justification:$45,700 Expenditure Increase and Revenue Increase

Recognition of revegetation works recoverable through our agreement with SEQ Water.





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Community ServicesCS4360C004 - Major Sporting Areas

Revenue (600,000) (1,658,000) (1,658,000) 0 0 0

Expense 1,634,005 5,809,761 5,809,188 0 (573) (573)

Net 1,034,005 4,151,761 4,151,188 0 (573) (573)

Justification:$533,000 Expenditure Increase, $533,573 Expenditure Decrease

Runaway Bay Little Athletics Lighting - Expenditure Increase $533,000Transfer from within Lighting program to fund estimated increased cost of project. During design it was revealed that the second field was well below Australian standards in terms ofillumination and it is considered financially advantageous in terms of value for money per M2 of lit facility to expand the scope from 1 field to 2 fields

Sports Field Lighting Renewals - Expenditure Decrease $423,000Transfer from parent Lighting renewals project to Runaway Bay Little Athletics lighting project

Ormeau Sports Park - Expenditure Decrease $60,000Allocated lighting funds being transferred to Runaway Bay Little Athletics Lighting project to progress that project

Norfolk Park Sports Lighting - Expenditure Decrease $50,000Allocated lighting funds being transferred to Runaway Bay Little Athletics Lighting project to progress that project ($573) Expenditure DecreaseLabour Hire contract LG314/411/11/129T and SUPPLY AND INSTALL SYNTHETIC TURF TO PARADISE POINT PARKLANDS contract LG314/690/17/010 Procurement Savings.





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Community ServicesCS4360O003 - Facilities and Amenities

Revenue (3,600) (3,600) (3,600) 0 0 0

Expense 228,070 228,070 201,065 0 (27,005) (27,005)

Net 224,470 224,470 197,465 0 (27,005) (27,005)


($24,000) Partial branch contribution towards the implementation of the corporate knowledge management system, Livepro. Funding is being consolidated at a directorate level in budgetcentre CS4000O004 Directorate Support Operations.

($3,005) Procurement savings for contract LG314/254/17/027 Demolition of Softball Clubhouse at Pizzey Park.

CS4360O009 - Open Space & Recreation Assets

Revenue 0 0 0 0 0 0

Expense 0 0 45,000 0 45,000 45,000

Net 0 0 45,000 0 45,000 45,000


LGIP Planning Costs Non-recurrent funding of $45,000 is sought for the further analysis of the Infrastructure Demand Model for the Parks Infrastructure Network which will include:· financial /engineering analysis to effectively manage financial risks associated with provision of trunk infrastructure including implementation and monitoring· independent preparation and review of extrinsic material required to support the LGIP to ensure alignment with asset management planning and long term financial planning, policy workand review of associated charges. · A key part of this work is analysing the cost to the City of servicing potential growth scenarios with necessary trunk infrastructure.





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Community ServicesCS4360O011 - Sportsfield Maintenance

Revenue 0 0 0 0 0 0

Expense 3,544,800 3,544,800 3,578,009 75,600 (42,391) 33,209

Net 3,544,800 3,544,800 3,578,009 75,600 (42,391) 33,209


$75,600 Expenditure Increase - transfer of supervision budgets relating to Light Rail maintenance, landscape improvement and contractor supervision into a dedicated budget centre inline with revised charging arrangements from City Infrastructure.

($42,391) Expenditure Decrease Procurement SavingsAudit of various Sports Field Lighting and Electrical Services Infrastructure contract LG314/621/17/035 and supply and delivery of one tonne Bulk Bags of Granular Lime and or Gypsumcontract LG314/411/17/036 Procurement Savings.

CS4410O002 - Recruitment

Revenue 0 0 0 0 0 0

Expense 6,800 6,800 0 0 (6,800) (6,800)

Net 6,800 6,800 0 0 (6,800) (6,800)


Partial branch contribution towards the implementation of the corporate knowledge management system, Livepro. Funding is being consolidated at a directorate level in budget centreCS4000O004 Directorate Support Operations.





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Community ServicesCS4410O003 - Minor Equipment Purchases < $10000

Revenue 0 0 0 0 0 0

Expense 17,200 14,042 4,042 0 (10,000) (10,000)

Net 17,200 14,042 4,042 0 (10,000) (10,000)



CS4410O004 - Computer Hardware/Software < $10000

Revenue 0 0 0 0 0 0

Expense 21,840 21,840 14,840 0 (7,000) (7,000)

Net 21,840 21,840 14,840 0 (7,000) (7,000)







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Community ServicesCS4410O005 - Administration

Revenue (48,500) (48,500) (48,500) 0 0 0

Expense 1,695,590 1,695,590 1,684,484 0 (11,106) (11,106)

Net 1,647,090 1,647,090 1,635,984 0 (11,106) (11,106)


($7,200) Expenditure DecreasePartial branch contribution towards the implementation of the corporate knowledge management system, Livepro. Funding is being consolidated at a directorate level in budget centreCS4000O004 Directorate Support Operations.

($3,906) Expenditure DecreaseLabour Hire contract LG314/411/11/129T Procurement Savings.


Revenue 0 0 0 0 0 0

Expense 38,970 38,970 23,970 0 (15,000) (15,000)

Net 38,970 38,970 23,970 0 (15,000) (15,000)







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Community ServicesCS4450C002 - Swimming Pool Construction

Revenue 0 (200,000) (200,000) 0 0 0

Expense 2,017,981 2,607,928 2,604,453 0 (3,475) (3,475)

Net 2,017,981 2,407,928 2,404,453 0 (3,475) (3,475)

Justification:($3,475) Expenditure DecreaseLabour Hire contract LG314/411/11/129T Procurement Savings, Pimpama Sports & Community Precinct project 31195 $1,075 and Helensvale Asset Renewals project 30583 $2,400.

($90,000) Expenditure Decrease $90,000 Expenditure IncreaseFunding from Upper Coomera ($60,000) (project 30882 and 30884) and Woongoolba Equipment and Renewal ($30,000) (project 30589) moved to Mudgeeraba Aquatic Centre $90,000(project 30585) in order to contribute towards the completion and upgrade of a new roof and facility amenities. These works are required due to the existing assets being at the end oftheir useful life. With increasing patronage year on year it is proposed to combine the two projects (previously proposed to be covered over consecutive years), to minimise downtime &disruption to the operations of the complex. Only minimal works required at Upper Coomera and Woongoolba for the remainder of the 2016-17 Financial Year.

CS4450O001 - Helensvale Pool

Revenue (37,000) (37,000) (37,000) 0 0 0

Expense 324,100 325,549 322,049 0 (3,500) (3,500)

Net 287,100 288,549 285,049 0 (3,500) (3,500)


Procurement savings relating to supply and delivery of mini bulk CO2 and non-industrial grade CO2 cylinders for City of Gold Coast Aquatic Centres contract LG314/411/17/011.





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Community ServicesCS4450O002 - Miami Pool

Revenue (295,700) (295,700) (295,700) 0 0 0

Expense 773,500 776,399 770,899 0 (5,500) (5,500)

Net 477,800 480,699 475,199 0 (5,500) (5,500)



CS4450O003 - Mudgeeraba Pool

Revenue (6,900) (6,900) (6,900) 0 0 0

Expense 214,350 215,799 212,799 0 (3,000) (3,000)

Net 207,450 208,899 205,899 0 (3,000) (3,000)







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Community ServicesCS4450O004 - Nerang Pool

Revenue (36,800) (36,800) (36,800) 0 0 0

Expense 443,700 445,149 441,149 0 (4,000) (4,000)

Net 406,900 408,349 404,349 0 (4,000) (4,000)



CS4450O005 - Palm Beach Pool

Revenue (225,200) (225,200) (225,200) 0 0 0

Expense 658,700 660,149 655,149 0 (5,000) (5,000)

Net 433,500 434,949 429,949 0 (5,000) (5,000)







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Community ServicesCS4450O006 - Gold Coast Aquatic Centre

Revenue (3,447,959) (3,447,959) (3,377,959) 0 70,000 70,000

Expense 4,233,974 4,234,719 4,226,019 0 (8,700) (8,700)

Net 786,015 786,760 848,060 0 61,300 61,300


Procurement savings relating to supply and delivery of mini bulk CO2 and non-industrial grade CO2 cylinders for City of Gold Coast Aquatic Centres contract LG314/411/17/011 ($5,500)and Labour Hire contract LG314/411/11/129T ($3,200).

$70,000 Revenue Decrease

Revenue Budget adjustment to the Gold Coast Aquatic Centre to reflect a change in licensing arrangements for Café Catalina. The new arrangement is more sustainable and aligns theCafe with other similar leased areas.

CS4450O007 - Woongoolba Pool

Revenue (52,500) (52,500) (52,500) 0 0 0

Expense 311,365 312,814 311,196 0 (1,618) (1,618)

Net 258,865 260,314 258,696 0 (1,618) (1,618)







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Community ServicesCS4450O008 - Swimming Pools - Operations

Revenue (103,015) (103,015) (103,015) 0 0 0

Expense 774,299 867,110 775,712 (60,000) (31,398) (91,398)

Net 671,284 764,095 672,697 (60,000) (31,398) (91,398)


($25,000) Branch contribution towards implementation of corporate knowledge management system, Livepro. Funding is being consolidated at the directorate level in budget centreCS4000O004 Directorate Support Unit Operations.

($60,000) Internal budget adjustment required to support on-going whole of branch administration and business/commercial development requirements across the portfolio of 35 venues.This has resulted in funding being moved from Aquatic Centres CS4450O008 CC 1004469 to Community Venues Administration CC4890O003 CC 104842.

($6,398) Procurement savings relating to supply and delivery of mini bulk CO2 and non-industrial grade CO2 cylinders for City of Gold Coast Aquatic Centres contract LG314/411/17/011and Supply of Fencing LG314/690/16/084

CS4450O012 - Upper Coomera Pool Operating Budget

Revenue (759,500) (759,500) (759,500) 0 0 0

Expense 1,247,307 1,247,307 1,244,307 0 (3,000) (3,000)

Net 487,807 487,807 484,807 0 (3,000) (3,000)







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Community ServicesCS4480C001 - South Stradbroke Construction (IDG)

Revenue 0 0 0 0 0 0

Expense 810,322 928,392 927,792 0 (600) (600)

Net 810,322 928,392 927,792 0 (600) (600)

Justification:($600) Expenditure Decrease


CS4560O002 - Animal Control - Operations

Revenue (3,445,340) (3,445,340) (3,445,340) 0 0 0

Expense 5,132,236 5,135,700 5,127,110 0 (8,590) (8,590)

Net 1,686,896 1,690,360 1,681,770 0 (8,590) (8,590)


Labour Hire Contract LG314/411/11/129T Procurement Savings.





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Community ServicesCS4570O002 - Regulated Parking

Revenue (18,049,300) (18,049,300) (18,049,300) 0 0 0

Expense 11,022,623 11,021,496 11,013,799 0 (7,697) (7,697)

Net (7,026,677) (7,027,804) (7,035,501) 0 (7,697) (7,697)

Justification:($7,697) Expenditure DecreaseLabour Hire Contract LG314/411/11/129T Procurement Savings.

CS4580O001 - Bruce Bishop Car Park - Operating

Revenue (1,673,600) (1,673,600) (1,673,600) 0 0 0

Expense 632,832 887,267 884,967 0 (2,300) (2,300)

Net (1,040,768) (786,333) (788,633) 0 (2,300) (2,300)


Labour Hire contract LG314/411/11/129T Procurement Savings.





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Community ServicesCS4590C001 - Env Health & City Law Serv Capital

Revenue 0 0 0 0 0 0

Expense 23,429 43,286 68,786 0 25,500 25,500

Net 23,429 43,286 68,786 0 25,500 25,500

Justification:$25,500 Expenditure IncreaseNew project (31028) for upgrades to the Abandoned Vehicle yard, such as internal fit outs and office enhancements. Offset by a saving in Operational expenses (CS4590O002)

CS4590O002 - Env Health & City Law Serv Operations

Revenue (980,164) (980,164) (980,164) 0 0 0

Expense 9,777,181 9,778,913 9,653,413 0 (125,500) (125,500)

Net 8,797,017 8,798,749 8,673,249 0 (125,500) (125,500)


($100,000) Branch contribution towards implementation of the corporate knowledge management system, Livepro. Funding is being consolidated at the directorate level in budget centreCS4000O004 Directorate Support Unit Operations.

($25,500) Savings in Operations budget to fund capital works in CS4590C001 (Project 31028) for upgrades to the Abandoned Vehicle yard such as internal fit outs and officeenhancements





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Community ServicesCS4600O001 - Cemetery Operations

Revenue (1,369,300) (1,369,300) (1,369,300) 0 0 0

Expense 1,295,151 1,264,084 1,262,984 0 (1,100) (1,100)

Net (74,149) (105,216) (106,316) 0 (1,100) (1,100)



CS4760C001 - Community Centre Construction

Revenue 0 0 0 0 0 0

Expense 672,228 1,060,006 1,400,006 0 340,000 340,000

Net 672,228 1,060,006 1,400,006 0 340,000 340,000

Justification:Net Expenditure Increase $340,000

Asset Renewal Program - ($479,000) Expenditure Reduction. Transfer of consolidated Asset Renewal Program budget (Project 30665) to individual works projects in accordance withAMP works schedule for 2016-17 for the purpose of project management and asset capture of capital works. As detailed below

Robina Community Centre Air Conditioning - $700,000 Expenditure Increase., Transfer of funds from consolidated Asset Renewal Program (Project 30665) $360,000 and the RobinaLibrary renewal program ( project 30873) $340,000 for urgent air conditioning replacement works at the Robina Community Centre.

Kirra Hill Asset Renewal - $119,000 Expenditure Increase. Transfer of funds from consolidated Asset Renewal Program (Project 30665) for replacement lift works at Kirra Hill Communityand Cultural Centre.





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Community ServicesCS4760O002 - Community Centres - Administration

Revenue 0 0 0 0 0 0

Expense 756,074 751,074 750,912 0 (162) (162)

Net 756,074 751,074 750,912 0 (162) (162)

Justification:($162) Expenditure DecreaseLabour Hire Contract Procurement Savings.

CS4770C001 - Major Sporting Areas

Revenue 0 0 0 0 0 0

Expense 1,815,684 2,199,209 2,197,609 0 (1,600) (1,600)

Net 1,815,684 2,199,209 2,197,609 0 (1,600) (1,600)





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Community ServicesJustification:($1,600) Expenditure DecreaseSupply and Installation of eight basketball backboards at Runaway Bay Sports Complex contract LG314/254/16/097 Procurement Savings.

($625,545) Expenditure Decrease $625,545 Expenditure IncreaseAdjustments are being made within the capital program with no net impact to overall budget position in order to advance required works for new City Venues at Coomera and Carrara notcovered by Commonwealth Games venue funding. Includes funds to support ICT set-up and public Wi-Fi at Gold Coast Sports & Leisure Centre and direct purchase of equipment toensure operational readiness of venues pre and post GC2018 e.g. floor tiles, furniture and fittings to support conferencing and events, specialised sports equipment such as blackoutcurtains and dividing nets at both sites.

The following project budgets have been decreased:

Runaway Base Stadium Asset Renewals ($245,000) resulting in a re prioritisation of proposed upgrades to the PA and mechanical exhaust upgrade to the main hall.Gold Coast Cycle Centre Renewals ($90,000) previously proposed Mt Bike skills track is not able to be advanced prior to GC2018.Carrara Indoor Stadium Equipment Renewals ($247,627) the previously proposed new electronic scoring system proposed for this facility is no longer required as a result of a change ofuse (squash courts and 2 multipurpose courts) of this facility post Commonwealth Games.Carrara Outdoor Playing Fields Asset Renewals ($42,918) as no additional works required in 2016-17 as new community sporting fields have recently been completed and new elite fieldshave been delayed and are still under construction.

The following project budgets have been increased:

Coomera Sport & Leisure Centre Refit & Equipment $200,000 for direct purchase of equipment to ensure operational readiness of venue post GC2018 e.g. floor tiles, furniture and fittingsto support conferencing and events, specialised sports equipment such as blackout curtains and dividing nets etc. Will support major events attracted to the venue such as the KarateWorld Cup Championships and the Broadcast, Film and Production Expo and support other revenue generating events and functions that will reduce the City's operating subsidy of thesenew major venues. Carrara Sport & Leisure Centre Refit & Equipment $425,545 funding required to support ICT set up including installation of public Wi-Fi and provision of dividing nets to supportmultipurpose use for the eight community courts in Hall 2. Funding will also support purchase of equipment (Big Screen panels and floor tiles) that will support major events attracted tothe venue such as Sudirman Cup and the Broadcast, Film and Production Expo and support other revenue generating events and functions that will reduce the City's operating subsidy ofthese new major venues.





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Community ServicesCS4770O001 - Major Venues Administration

Revenue (166,105) (166,105) (166,105) 0 0 0

Expense 996,955 1,143,337 1,142,187 0 (1,150) (1,150)

Net 830,850 977,232 976,082 0 (1,150) (1,150)


Labour Hire contract LG314/411/11/129T Procurement Savings.

CS4770O005 - Existing Carrara Indoor Stadium Operatns

Revenue (102,500) (102,500) (320,000) 0 (217,500) (217,500)

Expense 512,500 513,949 466,250 0 (47,699) (47,699)

Net 410,000 411,449 146,250 0 (265,199) (265,199)

Justification:($217,500) Revenue Increase ($47,699) Expenditure Decrease

The existing Carrara Indoor Stadium venue was originally planned to be closed for redevelopment from November 2016 but will now be open up until March 2017. The venue has alsohad an increase in bookings and events with a number of new significant events hosted.As a result budget adjustments to both the Stadium and Canteen revenue is required to reflect additional activity. Despite increased activity at the venue, operational expenditure savingsagainst the budget are being forecasted.





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Community ServicesCS4770O019 - Coomera Indoor Sports Centre

Revenue (546,400) (546,400) (646,400) 0 (100,000) (100,000)

Expense 746,400 746,400 766,600 0 20,200 20,200

Net 200,000 200,000 120,200 0 (79,800) (79,800)

Justification:($100,000) Revenue Increase $20,200 Expenditure Increase

Bookings and events hosted at the Coomera Indoor Sports Centre venue since opening in early August have exceeded the original revenue assumptions. In addition the decision tocontrol and operate food and beverage facilities at this venue also maximised the returns to Council. As a result revenue and expenditure budget adjustments to the Sports Centre andCanteen have been made to reflect additional operational revenue and costs such as labour and purchase of canteen supplies. This is due to additional demand from increased bookingsand events.

CS4820O001 - Pest Control

Revenue (24,939) (24,939) (24,939) 0 0 0

Expense 4,267,612 4,156,274 4,143,153 (13,121) 0 (13,121)

Net 4,242,673 4,131,335 4,118,214 (13,121) 0 (13,121)


Ibis Management contract LG314/411/17/001 Procurement Savings.





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Community ServicesCS4820O007 - Pest Planning & Implementation

Revenue 0 0 0 0 0 0

Expense 217,490 217,490 207,490 0 (10,000) (10,000)

Net 217,490 217,490 207,490 0 (10,000) (10,000)


Partial branch contribution toward the implementation of the corporate knowledge management system, Livepro. Funding is being consolidated at the directorate level in budget centreCS4000O004 Directorate Support Unit Operations.

CS4890O003 - Community Venues Administration

Revenue 0 0 0 0 0 0

Expense 1,125,975 1,149,761 1,208,530 60,000 (1,231) 58,769

Net 1,125,975 1,149,761 1,208,530 60,000 (1,231) 58,769

Justification:$60,000 Expenditure IncreaseInternal budget adjustment required to support on-going whole of branch administration and business/commercial development requirements across the portfolio of 35 Venues. This hasresulted in funding being moved from Aquatic Centres CS4450O008 CC 1004469 to Community Venues Administration CC4890O003 CC 104842.

($1,231) Expenditure DecreaseLabour Hire contract LG314/411/11/129T Procurement Savings.





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Attachment 2



Community Services





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Total Movement

Revenue (87,035,096) (93,310,240) (94,676,685) 0 (1,366,445) (1,366,445)

Expense 250,200,947 268,093,393 270,109,338 338,689 1,677,256 2,015,945

Net 163,165,851 174,783,153 175,432,653 338,689 310,811 649,500


Attachment 2



Economic Development and Major Projects

ED5520O003 - External Training Overhead

Revenue 0 0 0 0 0 0

Expense 8,160 8,160 8,137 0 (23) (23)

Net 8,160 8,160 8,137 0 (23) (23)

Justification:($23)Sept - Nov 2016 Procurement SavingsQuarterly procurement savings as identified by the OCPO.

ED5600O015 - General Operational

Revenue (212,928) (212,928) (212,928) 0 0 0

Expense 2,805,633 2,711,283 2,706,901 0 (4,382) (4,382)

Net 2,592,705 2,498,355 2,493,973 0 (4,382) (4,382)






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Economic Development and Major ProjectsED5600O016 - GOLD COAST CBD

Revenue 0 0 (9,000) 0 (9,000) (9,000)

Expense 1,200,000 1,200,000 1,209,000 0 9,000 9,000

Net 1,200,000 1,200,000 1,200,000 0 0 0

Justification:($9,000) REV FAV - 55250$9,000 EXP UNFAV - 55250Unbudgeted revenue for the Chinatown street markets and Chinese lunar new year has been received and required to be allocated towards the running costs of the markets.

ED5670C001 - Commonwealth Games Capital

Revenue (27,063,173) (27,762,881) (27,612,881) 0 150,000 150,000

Expense 27,063,173 34,119,790 33,969,790 0 (150,000) (150,000)

Net 0 6,356,909 6,356,909 0 0 0

Justification:GC2018 Games ProgramAll GC2018 cost centre and project budget movements are aligned with the GC2018 Games Program budget as approved by Council in June 2016.





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Economic Development and Major ProjectsED5670O001 - Commonwealth Games Operations

Revenue (7,546,833) (9,609,349) (9,519,795) 0 89,554 89,554

Expense 7,766,833 10,693,246 10,603,692 0 (89,554) (89,554)

Net 220,000 1,083,897 1,083,897 0 0 0


ED5670O002 - Commonwealth Games City Operations

Revenue (3,681,023) (10,512,520) (12,057,334) 0 (1,544,814) (1,544,814)

Expense 4,027,598 10,959,095 12,503,909 0 1,544,814 1,544,814

Net 346,575 446,575 446,575 0 0 0






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Economic Development and Major ProjectsED5700C001 - Tourism Capital Infrastructure

Revenue 0 0 0 0 0 0

Expense 1,618,500 2,421,109 2,482,109 0 61,000 61,000

Net 1,618,500 2,421,109 2,482,109 0 61,000 61,000

Justification:The Kurrawa Walk project was reliant on extraordinary funding via the State Government Commonwealth Games Public Domain Improvement Program. Council contribution was acollective of various funding sources including $31,000 from 30147 - Div 10 Kurrawa Pk Fac Redev and $30,000 from 55165 CWG Broadbeach Mall project. The State Governmentfunding did not come to fruition and the funds were inadvertently given up in the July reprovision process however it is proposed to return this funding component back to its originalbudget area for execution on other projects on the subject site. It is important to note that the $31,000 contribution from Parks are park developer contributions held in Trust and onlyavailable to be spent on the parkland associated with the original developer contribution; the $30,000 from 55165 CWG Broadbeach Mall project makes up part of a GC2018 approvedproject and is also required to be returned for appropriate allocation within the GC2018 Program.

ED5710O009 - Civic Events

Revenue 0 0 0 0 0 0

Expense 1,172,784 1,172,784 1,172,770 0 (14) (14)

Net 1,172,784 1,172,784 1,172,770 0 (14) (14)






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Economic Development and Major ProjectsED5710O010 - GC600 Motor Race

Revenue 0 0 0 0 0 0

Expense 380,615 380,615 380,534 0 (81) (81)

Net 380,615 380,615 380,534 0 (81) (81)

Justification:Sept - Nov 2016 Procurement SavingsQuarterly procurement savings as identified by the OCPO.





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Revenue (61,544,133) (71,262,147) (72,576,407) 0 (1,314,260) (1,314,260)

Expense 107,931,073 132,649,024 134,019,784 0 1,370,760 1,370,760

Net 46,386,940 61,386,877 61,443,377 0 56,500 56,500

Total for Directorate: Economic Development and Major Projects


Attachment 2



Gold Coast Water

CS4700C003 - Refuse Tips - Capital

Revenue (7,228,133) (9,464,183) (6,464,183) 0 3,000,000 3,000,000

Expense 7,228,133 11,316,659 7,933,986 0 (3,382,673) (3,382,673)

Net 0 1,852,476 1,469,803 0 (382,673) (382,673)

Justification:Revenue Decrease $3,000,000 / Expenditure Decrease ($3,382,673):Following a complete review of the Waste Management capital program, reductions totalling in excess of $3.3 million have been made within this budget centre. The major reductionrelates the removal of a $3 million allocation for proposed land acquisition. At this stage, no acquisition is expected to be commenced in the current financial year, so this budgetallocation has been removed, together with the proposed loan to fund that expenditure.

CS4700C004 - Transfer Stations - Capital

Revenue (2,026,906) (1,445,614) (369,332) 0 1,076,282 1,076,282

Expense 2,026,906 1,872,282 796,000 0 (1,076,282) (1,076,282)

Net 0 426,668 426,668 0 0 0

Justification:Revenue Decrease $1,076,282 / Expenditure Decrease ($1,076,282):Following a complete review of the Waste Management capital program, reductions totalling just in excess of $1 million have been made within this budget centre. The major reductionrelates to planning for a proposed Waste and Recycling Centre at Coomera. Planning and investigations for this proposed facility are ongoing, however the full allocation of $1 million thatwas provided for this item is not expected to be required in the current year. Further details will be provided within the Waste Management December Budget Review Report.

Loan and reserve funding has also been reduced to align with the expenditure reductions.





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Gold Coast WaterCS4700O003 - Waste Management - Administration

Revenue 0 (2,000,000) 0 0 2,000,000 2,000,000

Expense 2,219,500 4,218,036 2,218,036 0 (2,000,000) (2,000,000)

Net 2,219,500 2,218,036 2,218,036 0 0 0

Justification:Revenue Decrease $2,000,000 / Expenditure Decrease ($3,000,000) / Expenditure Increase $1,000,000:A $3 million budget allocation had been provided within this budget centre for costs associated with a Waste Management related legal matter. $2 million of that allocation was beingfunded via a transfer from the Waste Management Reserves at the September Budget Review. It is no longer expected this allocation will be required in the current financial year.Accordingly, the $2 million transfer from Reserves has been removed and the additional $1 million reduction in expense has also been transferred to Reserves. This funding may berequired in future years.

CS4700O004 - Transfer Stations - Operations

Revenue (1,002,800) (1,002,800) (559,500) 443,300 0 443,300

Expense 6,786,715 6,759,098 6,159,088 (600,000) (10) (600,010)

Net 5,783,915 5,756,298 5,599,588 (156,700) (10) (156,710)

Justification:Revenue Decrease $443,300 / Expenditure Decrease ($600,010):Following implementation of changed arrangements for the Reedy Creek salvage operations, both revenue and expense estimates for this function have been amended. This change hasa net positive impact of $156,700.

Procurement Savings ($10)





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Gold Coast WaterCS4700O005 - Landfill Operations

Revenue (7,281,895) (7,281,895) (7,281,895) 0 0 0

Expense (8,434,094) (8,098,118) (8,084,938) 30,000 (16,820) 13,180

Net (15,715,989) (15,380,013) (15,366,833) 30,000 (16,820) 13,180

Justification:Expenditure Increase $13,180:The movement recorded in this budget centre is the combined result of:(1) a decrease of $300,000 in anticipated expenditure due to the cessation of the in-home monitoring program; and(2) an increase of $330,000 for additional greenwaste processing costs. The unit rate for processing has increased by $6 per tonne, with this increase based on an estimated volume of55,000 tonnes.

Procurement Savings ($16,820)

CS4700O016 - Landfill Capping and Rehabilitation

Revenue 0 (3,159,249) (2,565,749) 0 593,500 593,500

Expense 0 3,159,249 2,565,749 0 (593,500) (593,500)

Net 0 0 0 0 0 0

Justification:Revenue Decrease $593,500 / Expenditure Decrease ($593,500):Optimisation of the capacity of Cell 2 at the Reedy Creek Landfill has enabled the capping program for Cell 1 to be deferred until 2018-19. As a result, a reduction in anticipatedexpenditure of $593,500 has been identified in this review.

These works are funded from the Waste Management Reserves, so a corresponding reduction in funding from that reserve has also been identified in this review.





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Gold Coast WaterCS4710C003 - Refuse Tips - Capital

Revenue (1,761,266) (615,000) 0 0 615,000 615,000

Expense 1,761,266 615,000 0 0 (615,000) (615,000)

Net 0 0 0 0 0 0

Justification:Revenue Decrease $615,000 / Expenditure Decrease ($615,000):An allocation of $615,000 had been provided in the 2016-17 initial budget for new software. This is no longer expected to be required as a capital expenditure, however funding may berequired for works associated with the planning and implementation of new systems which is operational in nature. Accordingly, this expenditure has been transferred to the operationalbudget within Budget Centre GW4740O009.The proposed capital expenditure was to be loan funded. This proposed borrowing has also been removed in this review.

CS4740O003 - Reserve Transfers - Waste

Revenue 0 0 0 0 0 0

Expense 4,300,000 5,857,616 6,302,931 0 445,315 445,315

Net 4,300,000 5,857,616 6,302,931 0 445,315 445,315

Justification:Expense Increase $445,315As a result of the budgetary movements recorded in this Budget Review, the value of surplus funds available for transfer to Waste Management Reserves has increase by over $0.4million.





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Gold Coast WaterGW1100O001 - Waste & Recycling Centres Management

Revenue 0 0 0 0 0 0

Expense 638,190 848,088 845,867 0 (2,221) (2,221)

Net 638,190 848,088 845,867 0 (2,221) (2,221)

Justification:Expenditure Decrease ($2,221) - Procurement Savings only

GW1100O002 - Helensvale Waste & Recycling Centre

Revenue 0 0 0 0 0 0

Expense 587,583 587,303 582,562 0 (4,741) (4,741)

Net 587,583 587,303 582,562 0 (4,741) (4,741)


GW1100O003 - Molendinar Waste & Recycling Centre

Revenue 0 0 0 0 0 0

Expense 1,316,466 1,315,925 1,312,443 0 (3,482) (3,482)

Net 1,316,466 1,315,925 1,312,443 0 (3,482) (3,482)






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Gold Coast WaterGW1100O004 - Merrimac Waste & Recycling Centre

Revenue 0 0 0 0 0 0

Expense 271,480 271,011 268,402 0 (2,609) (2,609)

Net 271,480 271,011 268,402 0 (2,609) (2,609)


GW1100O005 - Reedy Creek Waste & Recycling Centre

Revenue 0 0 0 0 0 0

Expense 969,850 969,090 968,274 0 (816) (816)

Net 969,850 969,090 968,274 0 (816) (816)

Justification:Expenditure Decrease ($816) - Procurement Savings only

GW1100O007 - Jacobs Well Waste & Recycling Centre

Revenue 0 0 0 0 0 0

Expense 179,080 178,696 176,630 0 (2,066) (2,066)

Net 179,080 178,696 176,630 0 (2,066) (2,066)






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Gold Coast WaterGW1100O008 - Mudgeeraba Waste & Recycling Centre

Revenue 0 0 0 0 0 0

Expense 239,650 239,406 238,709 0 (697) (697)

Net 239,650 239,406 238,709 0 (697) (697)


GW1120O002 - Recycling Promotion & Resources

Revenue (851,822) (851,822) (851,822) 0 0 0

Expense 542,504 532,948 532,468 0 (480) (480)

Net (309,318) (318,874) (319,354) 0 (480) (480)






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Gold Coast WaterGW2020C001 - AS-Water-Capital Works

Revenue (100,000) (739,000) (684,000) 0 55,000 55,000

Expense 7,836,000 11,188,500 11,262,000 0 73,500 73,500

Net 7,736,000 10,449,500 10,578,000 0 128,500 128,500

Justification:Revenue Decrease $55,000 / Expenditure Increase $73,500:Following a complete review of the Water and Sewerage capital program, an overall increase of $73,500 (0.6%) has been identified for the Water Infrastructure program in this review.Further detail surrounding the capital program amendments is provided in the Water and Sewerage Services December Budget Review Report.

The decrease in revenue relates to adjustments to Infrastructure Charges Reserve funding as a result of small decreases to anticipated expenditure on growth-related water infrastructureprojects.

GW2020C002 - AS-Sewer-Capital Works

Revenue (29,279,500) (24,911,400) (24,398,400) 0 513,000 513,000

Expense 60,825,750 58,861,700 58,538,400 0 (323,300) (323,300)

Net 31,546,250 33,950,300 34,140,000 0 189,700 189,700

Justification:Revenue Decrease $513,000 / Expenditure Decrease $323,300:Following a complete review of the Water and Sewerage capital program, an overall reduction of $323,300 (0.5%) has been identified for the Sewer Infrastructure program in this review.Further detail surrounding the capital program amendments is provided in the Water and Sewerage Services December Budget Review Report.

The decrease in revenue is an adjustment to Infrastructure Charges Reserve funding as a result of the removal of funding for "unidentified trunk sewerage infrastructure" in this review,together with a small decrease in Commonwealth Games Reserve funding requirement for sewerage system augmentation works at Keith Hunt Park.





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Gold Coast WaterGW2020C003 - AS-Recycled Water-Capital Works

Revenue 0 0 0 0 0 0

Expense 600,000 1,435,000 1,635,000 0 200,000 200,000

Net 600,000 1,435,000 1,635,000 0 200,000 200,000

Justification:Expenditure Increase $200,000:As part of the review of the Water and Sewerage capital program, an additional requirements were identified to undertake a Risk Assessment and CCTV integrity testing of Class A+recycled water mains in association with the Pimpama Recycled Water Supply Switch.

GW2020C005 - AS-Non Core Water-Capital Works

Revenue (525,000) (500,000) (126,500) 0 373,500 373,500

Expense 2,620,000 3,280,000 2,806,500 0 (473,500) (473,500)

Net 2,095,000 2,780,000 2,680,000 0 (100,000) (100,000)

Justification:Revenue Decrease $373,500 / Expenditure Decrease $473,500:Following a review of this component of the Water and Sewerage capital program, a reduction of $373,500 was identified for the New Water Meter Installation program. This program isfunded by customer charges, thus anticipated revenue has also been reduced. These works are now predominantly undertaken by developers and other external contractors, engageddirectly by landowners.

The remaining expenditure reduction of $100,000 relates to the removal of the capital allocation provided for an Advanced Metering Infrastructure pilot. This pilot has now beenincorporated within the Holistic Water Metering contract currently under negotiation, so a separate budget allocation is not required.





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Gold Coast WaterGW2020C007 - AS-Non Regulated Water Services-Capital

Revenue 0 0 0 0 0 0

Expense 70,000 70,000 320,000 0 250,000 250,000

Net 70,000 70,000 320,000 0 250,000 250,000

Justification:Expenditure Increase $250,000:This increase is required to fund the replacement of a critical item of laboratory equipment (photospectrometer) required for testing operations. Given the age of the existing item,replacement parts are extremely difficult and expensive to procure. As a result, replacement is considered to be the most economically viable option.

GW2020O001 - AS-Water-Operating

Revenue (578,000) (578,000) (578,000) 0 0 0

Expense 1,286,695 1,530,615 1,608,144 0 77,529 77,529

Net 708,695 952,615 1,030,144 0 77,529 77,529

Justification:Expenditure Increase $77,529:An increase in anticipated decommissioning costs of $85,600 has been identified following a complete review of the Water Infrastructure capital program for the 2016-17 financial year.

Procurement Savings $8,071





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Gold Coast WaterGW2020O002 - AS-Sewer-Operating

Revenue (579,000) (579,000) (579,000) 0 0 0

Expense 1,205,236 1,970,666 1,736,989 0 (233,677) (233,677)

Net 626,236 1,391,666 1,157,989 0 (233,677) (233,677)

Justification:Expenditure Decrease ($233,677):An decrease in anticipated decommissioning costs of $219,500 has been identified following a complete review of the Sewer Infrastructure capital program for the 2016-17 financial year.


GW2030O001 - NR-Water-Operating

Revenue 0 (1,865) (1,865) 0 0 0

Expense 1,852,454 2,098,377 2,075,434 0 (22,943) (22,943)

Net 1,852,454 2,096,512 2,073,569 0 (22,943) (22,943)

Justification:Expenditure Decrease ($22,943):Minor increases, totalling $37,002, have been identified for condition assessment projects specifically targeting water mains within key Commonwealth Games impacted areas, firehydrants and reservoirs.






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Gold Coast WaterGW2030O002 - NR-Sewer-Operating

Revenue 0 (54,030) (56,240) 0 (2,210) (2,210)

Expense 2,718,086 3,056,753 3,027,127 0 (29,626) (29,626)

Net 2,718,086 3,002,723 2,970,887 0 (31,836) (31,836)

Justification:Revenue Increase ($2,210) / Expenditure Decrease ($29,626):Additional funding is required for condition assessment works being undertaken on sewer maintenance holes across the City. This program of work has been accelerated to ensure keyCommonwealth Games impacted areas are finalised in sufficient time to enable any necessary rehabilitation works to be undertaken.

A small increase in both revenue and expense has also been identified for a recoverable works project being undertaken in conjunction with the Gold Coast Airport.

These small increases are offset by Procurement Savings of $70,558

GW2030O004 - NR-Trade Waste-Operating

Revenue 0 0 0 0 0 0

Expense 0 81,933 66,600 0 (15,333) (15,333)

Net 0 81,933 66,600 0 (15,333) (15,333)

Justification:Expenditure Decrease ($15,333):A small saving has been identified within project funding for implementation of the electronic waste tracking system, with the vendor undertaking development of test cases.






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Gold Coast WaterGW2040O001 - NC-Water-Operating

Revenue (165,000) (289,872) (421,872) 0 (132,000) (132,000)

Expense 145,000 506,872 638,872 0 132,000 132,000

Net (20,000) 217,000 217,000 0 0 0

Justification:Revenue Increase ($132,000) / Expenditure Increase $132,000:An additional operational project for Gold Coast Light Rail Stage 1 Defect Repairs has been included in this budget review.Costs for these works are expected to be fully recoverable.

GW2040O002 - NC-Sewer-Operating

Revenue (70,000) (146,340) (79,000) 0 67,340 67,340

Expense 60,000 136,340 69,000 0 (67,340) (67,340)

Net (10,000) (10,000) (10,000) 0 0 0

Justification:Revenue Decrease $67,340 / Expenditure Decrease ($67,340):Works on the Coomera Motorway Exit 54 projects being undertaken by the Department of Transport and Main Roads (DTMR) are virtually complete. Audit and oversight beingundertaken by GCW&W staff will be less than originally anticipated, thus the expenditure budget for this item is being reduced.These works are fully recoverable from DTMR, so a corresponding reduction in the revenue to be received has also been identified.





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Gold Coast WaterGW2050O001 - Mmac STP-Sewer-Operating

Revenue 0 0 0 0 0 0

Expense 5,677,527 5,676,231 5,676,110 0 (121) (121)

Net 5,677,527 5,676,231 5,676,110 0 (121) (121)


GW2070O001 - Cmbbah STP-Sewer-Operating

Revenue 0 0 0 0 0 0

Expense 9,054,656 9,049,478 9,042,778 0 (6,700) (6,700)

Net 9,054,656 9,049,478 9,042,778 0 (6,700) (6,700)


GW2100O001 - Wkshp-Unallocated Water Services - Ops

Revenue 0 0 0 0 0 0

Expense 696,906 693,720 693,617 0 (103) (103)

Net 696,906 693,720 693,617 0 (103) (103)






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Gold Coast WaterGW2110I001 - CP-SLA Org Services to GCW

Revenue 0 0 0 0 0 0

Expense 16,923,000 16,923,000 16,022,380 (900,620) 0 (900,620)

Net 16,923,000 16,923,000 16,022,380 (900,620) 0 (900,620)

Justification:Expenditure Decrease ($900,620):The meter reading functions that have been undertaken by the Organisational Services Directorate, under a Service Level Agreement (SLA), are being transferred to Gold Coast Water &Waste. As a result, the SLA payment is being reduced for the second half the current year, with these costs being taken up as direct costs within the GCW&W budget in Budget CentreGW2230O001





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Gold Coast WaterGW2110O001 - BP-Water-Operating

Revenue (270,507,865) (271,559,785) (268,703,978) (24,193) 2,880,000 2,855,807

Expense 183,417,908 178,710,176 174,843,163 16,400 (3,883,413) (3,867,013)

Net (87,089,957) (92,849,609) (93,860,815) (7,793) (1,003,413) (1,011,206)

Justification:Revenue Decrease $2,855,807 / Expenditure Decrease ($3,867,013):Major movements within this budget centre comprise:

Volumetric Water Revenues: an error was made in the Initial Budget related to the allocation for Concealed Leakage remissions. This error is being corrected at this budget review,which results in a decrease of $2.88 million in expected volumetric water revenue.

Funding of $181,607 has been transferred from Budget Centre GW2110O001 to provide for business efficiency and process reviews being undertaken across the Directorate. Thisreduction is offset by an increase of $40,000 provided for above-establishment resourcing engaged to assist with SAP equipment module management.

Transfer to Water & Sewerage Reserves (water-related component) has reduced by $3,738,598 as a result of the movements recorded in this review.

Remaining movements include procurement savings and minor changes related to Activity Rates recoveries which have no net impact on GCW&W's budget as they are offset with othermovements across the Directorate.





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Gold Coast WaterGW2110O002 - BP-Sewerage-Operating

Revenue (211,443,755) (213,313,835) (212,708,253) 45,582 560,000 605,582

Expense 28,916,959 26,637,048 26,878,017 (31,217) 272,186 240,969

Net (182,526,796) (186,676,787) (185,830,236) 14,365 832,186 846,551

Justification:Revenue Decrease $605,582 / Expenditure Increase $240,969:Major movements within this budget centre comprise:

Volumetric Sewer Revenues: an error was made in the Initial Budget related to the allocation for Concealed Leakage remissions. This error is being corrected at this budget review,which results in a decrease of $0.56 million in expected volumetric sewer revenue.

A total increase of $731,500 in funding for operational projects has been identified. This includes $181,607 transferred from GW2110O001. The additional funding requirements relatesto business efficiency and process reviews across the Directorate, as well as funding for Knowledgement Management Improvement Program, Asset Revaluation, Tariff Review andContractor Induction solution. An additional $60,000 has also been provided for above-establishment resourcing engaged to assist with SAP equipment module management.

Transfer to Water & Sewerage Reserves (sewer-related component) has reduced by $497,218 as a result of the movements recorded in this review.

Remaining movements include procurement savings and minor changes related to Activity Rates recoveries which have no net impact on GCW&W's budget as they are offset with othermovements across the Directorate.





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Gold Coast WaterGW2140O001 - DS-Unallocated Water Services-Operating

Revenue (79,831) (79,831) (90,694) (10,863) 0 (10,863)

Expense 1,275,538 1,220,319 1,207,344 0 (12,975) (12,975)

Net 1,195,707 1,140,488 1,116,650 (10,863) (12,975) (23,838)

Justification:Revenue Increase ($10,863) / Expenditure Decrease ($12,975):Amendments to internal recoveries from Activity Rates - ($10,863) - these entries have no net impact on GCW&W's budget as they are offset with other movements across theDirectorate.


GW2140O002 - DS-Unallocated Sewer Services-Operating

Revenue (141,669) (141,669) (130,545) 11,124 0 11,124

Expense 2,393,892 2,298,963 2,271,990 0 (26,973) (26,973)

Net 2,252,223 2,157,294 2,141,445 11,124 (26,973) (15,849)

Justification:Revenue Decrease $11,124 / Expenditure Decrease ($26,973):Amendments to internal recoveries from Activity Rates - $11,124 - these entries have no net impact on GCW&W's budget as they are offset with other movements across the Directorate.






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Gold Coast WaterGW2150O001 - WPS-Water-Operating

Revenue 0 0 0 0 0 0

Expense 853,219 853,219 853,194 0 (25) (25)

Net 853,219 853,219 853,194 0 (25) (25)


GW2160O001 - SPS-Sewer-Operating

Revenue 0 0 0 0 0 0

Expense 6,427,506 6,425,890 5,959,035 (434,599) (32,256) (466,855)

Net 6,427,506 6,425,890 5,959,035 (434,599) (32,256) (466,855)

Justification:Expenditure Decrease ($466,855):Amendments to internal expenditure allocations via Activity Rates - ($434,599) - these entries have no net impact on GCW&W's budget as they are offset with other movements acrossthe Directorate.






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Gold Coast WaterGW2170O001 - Rsvr-Water-Operating

Revenue 0 0 0 0 0 0

Expense 333,177 333,177 333,147 0 (30) (30)

Net 333,177 333,177 333,147 0 (30) (30)


GW2190O001 - NO-Water-Operating

Revenue 0 0 0 0 0 0

Expense 3,327,650 3,437,650 3,183,554 (254,066) (30) (254,096)

Net 3,327,650 3,437,650 3,183,554 (254,066) (30) (254,096)







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Gold Coast WaterGW2190O002 - NO-Sewer-Operating

Revenue 0 0 0 0 0 0

Expense 6,866,253 7,016,253 6,908,519 (127,489) 19,755 (107,734)

Net 6,866,253 7,016,253 6,908,519 (127,489) 19,755 (107,734)


An additional $20,000 has been included in this review for the implementation of a predictive modelling tool that will enable improved sewer network environmental risk management. Theinitial estimate included at the September 2016 review for this project was $150,000. Improved information is now available around system requirements and this additional fundingrequirement has been identified.


GW2200O001 - NM-Water-Operating

Revenue 0 0 0 0 0 0

Expense 11,252,047 11,199,015 11,119,158 234,742 (314,599) (79,857)

Net 11,252,047 11,199,015 11,119,158 234,742 (314,599) (79,857)

Justification:Expenditure Decrease ($79,857):Amendments to internal expenditure allocations via Activity Rates - $234,742 - these entries have no net impact on GCW&W's budget as they are offset with other movements across theDirectorate.






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Gold Coast WaterGW2200O002 - NM-Sewer-Operating

Revenue 0 0 0 0 0 0

Expense 7,809,448 7,781,853 7,594,741 151,329 (338,441) (187,112)

Net 7,809,448 7,781,853 7,594,741 151,329 (338,441) (187,112)

Justification:Expenditure Decrease ($187,112):Amendments to internal expenditure allocations via Activity Rates - $151,330 - these entries have no net impact on GCW&W's budget as they are offset with other movements across theDirectorate.


GW2200O003 - NM-Recycled Water-Operating

Revenue 0 0 0 0 0 0

Expense 421,089 421,049 429,415 8,379 (13) 8,366

Net 421,089 421,049 429,415 8,379 (13) 8,366

Justification:Expenditure Increase $8,366:Amendments to internal expenditure allocations via Activity Rates - $8,379 - these entries have no net impact on GCW&W's budget as they are offset with other movements across theDirectorate.






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Gold Coast WaterGW2200O004 - NM-Unallocated Water Services-Operating

Revenue 0 0 0 0 0 0

Expense 430,469 430,469 591,654 161,185 0 161,185

Net 430,469 430,469 591,654 161,185 0 161,185


GW2200O005 - NM-Unallocated Sewer Services-Operating

Revenue 0 0 0 0 0 0

Expense 611,166 611,166 864,852 253,686 0 253,686

Net 611,166 611,166 864,852 253,686 0 253,686






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Gold Coast WaterGW2200O006 - NR Maintenance

Revenue (60,800) (60,800) 0 60,800 0 60,800

Expense 60,800 60,800 0 (60,800) 0 (60,800)

Net 0 0 0 0 0 0

Justification:Revenue Decrease $60,800 / Expenditure Decrease ($60,800):Amendments to internal expenditure and recovery allocations via Activity Rates - these entries have no net impact on GCW&W's budget.

GW2220O001 - CM - Customer Management (Water)

Revenue 0 0 0 0 0 0

Expense 506,106 707,111 716,954 0 9,843 9,843

Net 506,106 707,111 716,954 0 9,843 9,843

Justification:Expenditure Increase $9,843:Additional funding of $10,900 has been provided for the extension of an above-establishment resource to the end of this financial year to assist with improvements to customer serviceprocesses.






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Gold Coast WaterGW2220O002 - CM - Customer Management (Sewer)

Revenue 0 0 0 0 0 0

Expense 884,344 1,241,685 1,259,259 0 17,574 17,574

Net 884,344 1,241,685 1,259,259 0 17,574 17,574

Justification:Expenditure Increase $17,574:Additional funding of $19,400 has been provided for the extension of an above-establishment resource to the end of this financial year to assist with improvements to customer serviceprocesses.


GW2230O001 - OS - Customer Connections (Water)

Revenue (1,512,500) (1,512,500) (1,512,500) 0 0 0

Expense 480,915 679,937 1,612,351 939,620 (7,206) 932,414

Net (1,031,585) (832,563) 99,851 939,620 (7,206) 932,414

Justification:Expenditure Increase $932,414:Meter reading functions that have been undertaken by the Organisational Services Directorate, under a Service Level Agreement (SLA), are being transferred to Gold Coast Water &Waste. As a result, the SLA payment within Budget Centre GW2110N001 is being reduced for the second half of the current year, with these costs being taken up as direct costs withinthis Budget Centre - $900,620.

An additional $39,000 has been provided for maintenance of metered standpipes, due to increased demand that has resulted in increased maintenance requirements.






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Gold Coast WaterGW2230O002 - OS - Customer Connections (Sewer)

Revenue (640,000) (640,000) (640,000) 0 0 0

Expense 1,139,615 1,002,622 1,015,364 0 12,742 12,742

Net 499,615 362,622 375,364 0 12,742 12,742

Justification:Expenditure Increase $12,742:An additional $12,870 has been provided for replacement of recently failed composite sampling units and the acquisition of newly available long life, heavy duty batteries and chargers fortrade waste sampling units.


GW2240O005 - OS - Scientific Services

Revenue (450,000) (450,000) (450,000) 0 0 0

Expense 717,750 929,207 920,682 0 (8,525) (8,525)

Net 267,750 479,207 470,682 0 (8,525) (8,525)






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Gold Coast WaterGW2270O001 - IWP - Water - Operating

Revenue (5,000) (5,000) (5,000) 0 0 0

Expense 1,824,910 2,094,678 2,152,578 0 57,900 57,900

Net 1,819,910 2,089,678 2,147,578 0 57,900 57,900

Justification:Expenditure Increase $57,900:Funding of $192,000 has been incorporated for the development of a Recycled Water Management Plan, with this increase being offset by a reduction in the anticipated spend on theWater Loss Management Program in the current year.


GW2280O001 - AIP - Water - Operating

Revenue (101,000) (101,000) (101,000) 0 0 0

Expense 755,000 726,399 725,508 0 (891) (891)

Net 654,000 625,399 624,508 0 (891) (891)






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Gold Coast WaterGW2280O002 - AIP - Sewer - Operating

Revenue (511,500) (511,500) (511,500) 0 0 0

Expense 1,795,410 1,754,562 1,752,978 0 (1,584) (1,584)

Net 1,283,910 1,243,062 1,241,478 0 (1,584) (1,584)


GW2290O001 - SCP - Sewer - Operating

Revenue (5,000) (201,000) (201,000) 0 0 0

Expense 2,109,320 2,680,562 3,003,507 0 322,945 322,945

Net 2,104,320 2,479,562 2,802,507 0 322,945 322,945

Justification:Expenditure Increase $322,945:Numerous movements have been identified to operational initiatives within the Sewer Catchment Planning area. The major increases relate to new and additional requirements for:- Odour and Air Quality Assessments ($120,000)- Sewer Corrosion and Odour Mitigation work within the Elanora Catchment ($135,000)- Sewer Pump Station Contingency and Emergency Response Plans ($50,000) and- Sewer Corrosion and Odour Management Planning ($20,000)






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Gold Coast WaterGW4740O009 - Waste Management Administration

Revenue 0 0 (517,000) (517,000) 0 (517,000)

Expense 0 167,600 782,600 0 615,000 615,000

Net 0 167,600 265,600 (517,000) 615,000 98,000

Justification:Revenue Increase ($517,000) / Expenditure Increase $615,000:As noted in Budget Centre CS4710C003, an expenditure allocation of $615,000 had been provided in the 2016-17 initial budget for new software. This is no longer expected to berequired as a capital expenditure, however funding may be required for works associated with the planning and implementation of new systems which is operational in nature.Accordingly, this expenditure has been transferred to the operational budget within this Budget Centre.

A revenue allocation of $517,000 has been incorporated to reflect interest that would be earned on cash held in the Waste Management Reserve. This investment interest allocation hasbeen implemented for Waste Management Reserves in a similar fashion to that adopted for Water and Sewerage cash reserves.





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Total Movement

Revenue (614,506,539) (624,116,701) (612,508,539) 8,750 11,599,412 11,608,162

Expense 618,392,194 624,116,701 612,508,539 (613,450) (10,994,712) (11,608,162)

Net 3,885,655 0 0 (604,700) 604,700 0

Total for Directorate: Gold Coast Water


Attachment 2



Office of the CEO

CE8100O018 - Staff Parking at Evandale / Bundall

Revenue (418,900) (418,900) (418,900) 0 0 0

Expense 337,500 337,500 120,990 0 (216,510) (216,510)

Net (81,400) (81,400) (297,910) 0 (216,510) (216,510)

Justification:$216,510 Expenditure Reduction.

Inter-Directorate Transfer: $216,510.

$225,000 is requested to be transferred to Property Services OS6970C003 Project 62400, Organisational Services as a contribution towards the refurbishment of the Courtyard betweenWaterside East and West. $216,510 unspent funds from the Staff Shuttle Bus Services is to be transferred from BC: CE8100O018 CC100007 in this review and the remainder of $8,490is requested to be transferred from CE8110O001 CC1000069.

CE8110O001 - Executive Administration

Revenue 0 0 0 0 0 0

Expense 548,700 438,431 99,141 (330,800) (8,490) (339,290)

Net 548,700 438,431 99,141 (330,800) (8,490) (339,290)





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Office of the CEOJustification:$339,290 Expenditure Reduction.

Intra-Directorate Transfer: $180,800.

$180,800 is requested to be transferred recurrently to Digital City Program Operations (CE8190O001 CC1002772).

$155,000 is to fund a new position - Coordinator Devices - Digital City Program. This position is to provide technical, operational and strategic advice to Council directorates in the planning, operation and management of sensor and devices networks. Specific dutiesinclude:

• development of policy and operational parameters• providing technical advice to procurement and contract definitions• providing technical advice to project scoping and options assessment• managing the delivery of sensors and devices• ongoing management of maintenance and other contracts• liaising with departments including the Business Innovation and Technology Services (BITS).

$25,800 to fund the shortfall in Labour cost in the Digital City Program office staff.

Inter-Directorate Transfer: $158,490.

$150,000 to be transferred for 2 years recurrently to Community Services for Community Services review BC: CS4000O004, CC1000279. This will cover the salary for ManagerDirectorate Support and some ancillary costs. A further $125,000 will be required in 2017-18 budget.

$8,490 requested to be transferred non-recurrently from CC1002079 to Property Services (Organisational Services) BC: OS6970C003 Project 62400 to cover the shortfall associated withthe refurbishment of the Courtyard between Waterside East and West. The total cost is expected to be $225,000. $216,510 unspent funds from the Staff Shuttle Bus Services isrequested to be transferred from BC: CE8100O018 CC100007 to Property Services in this review and the remainder is requested to be transferred from this Budget Centre.





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Office of the CEOCE8180O001 - Separation Costs from Allconnex

Revenue (595,000) (295,000) 0 0 295,000 295,000

Expense 2,049,000 2,214,000 2,669,000 0 455,000 455,000

Net 1,454,000 1,919,000 2,669,000 0 750,000 750,000

Justification:$295,000 Revenue Reduction.$455,000 Expenditure Reduction.

General Review:

Rocket Building Lease and sub-Lease - $455,000 Expenditure and $295,000 Revenue Unfavourable Additional funding of $750,000 ($455,000 increased expenditure and $295,000 reduced revenue) is required to fund the new lease arrangement and a reduction in revenue of $295,000for a sub-lease that did not eventuate.

The Council has executed a Deed with the Landlord of Rocket Building, effective from 30 November 2016 as follows:

1. A surrender of floors 1-4;2. Retention by the City of a lease over the 5th floor area only (rental will continue to be paid for the retention area level 5 and car park at the rate of circa $482,000 per annum until suchtime as the lease for such area expires in March 2019; and3. As consideration for the surrender, a one off payment of $1.5million.

Based on the above arrangement, the expenditure budget is proposed to be increased from $2,214,000 to $2,669,000 in 2016-17. The increase of $455,000 being the difference betweenthe surrender payment and a reduction in lease payments for floors 1-4. It should be noted that under the new lease arrangement, there will be a reduction in total lease payments of $3.6million from 1 December 2016 (effective date of new lease arrangement) to 20 March 2019 (expiration of the previous lease arrangement). This represents an overall saving of $2.1million following payment of the surrender fee of $1.5 million.





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Office of the CEOCE8190C001 - Digital City Program - Capital

Revenue 0 (1,750,000) (2,350,000) 0 (600,000) (600,000)

Expense 0 2,021,262 2,621,262 0 600,000 600,000

Net 0 271,262 271,262 0 0 0

Justification:$600,000 Revenue Increase. $600,000 Expenditure Increase.

General Review:

CWG ICT WAN Cabling Project - $600,000 Revenue / Expenditure Increase.

As noted in the “Commonwealth Games Programs and Budget Review” report to Council on 29 November, it is proposed that $600,000 of program savings be utilised to fund CWG ICTWAN Cabling Project (Project 60022). GC2018 Games Program - All GC2018 cost centre and project budget movements are aligned with the GC2018 Games Program budget asapproved by Council in June 2016.





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Office of the CEOCE8190O001 - Digital City Program Operations

Revenue 0 0 0 0 0 0

Expense 0 2,206,770 2,364,990 180,800 (22,580) 158,220

Net 0 2,206,770 2,364,990 180,800 (22,580) 158,220

Justification:$158,220 Expenditure Increase.

Intra-Directorate Transfer: $180,800.

$180,800 is requested to be transferred recurrently from 'The Bank' CE8110O001 CC1000069 to Digital City Program Operations (CC1002772).

$155,000 is to fund a new position - Coordinator Devices - Digital City Program.This position is to provide technical, operational and strategic advice to Council directorates in the planning, operation and management of sensor and devices networks. Specific dutiesinclude:

• development of policy and operational parameters• providing technical advice to procurement and contract definitions• providing technical advice to project scoping and options assessment• managing the delivery of sensors and devices• ongoing management of maintenance and other contracts• liaising with departments including the Business Innovation and Technology Services (BITS).

$25,800 to fund the shortfall in Labour cost in the Digital City Program office staff.

Procurement Savings : $22,580.

$22,580 savings on Foot hold trap open innovation challenge contract LG314/621/17/066.





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Office of the CEOCG5810O003 - Investment & Other Interest Income

Revenue (12,774,400) (14,647,535) (16,811,436) 517,000 (2,680,901) (2,163,901)

Expense 3,124,197 3,124,197 3,124,197 0 0 0

Net (9,650,203) (11,523,338) (13,687,239) 517,000 (2,680,901) (2,163,901)

Justification:$2,163,901 Revenue Increase.

General Review:

A review of the interest from Investment Income has projected a net increase of $2,163,901.

CC1000109 Investment and Other Interest Income - the gross increase of $2,680,901 is projected. The Revised Budget was based on an average cash balance of $850 million at anaverage interest rate of 2.6%. The average cash balance to date has been $925 million, with the high balances still be driven by the amount of cash held in reserve. It is likely that thecurrent year to day average balance will be indicative of the full year average cash balance, so this figure has been used to recalculate the investment income budget. The averageearnings rate has also remained above projections and is currently 2.7%. So investing $925million at 2.7% provides an estimated investment revenue of $24,975,000.

CC1002936 - Interest on Waste Management Reserve - The increase in gross interest is offset by an allocation of $517,000 to Waste Management Reserve after it was agreed thatinterest would be applied to the Waste Management Reserve in line with what is done for the Water and Sewerage Reserve.





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Office of the CEOCG5850O004 - Financial Systems Mtce

Revenue 0 0 0 0 0 0

Expense 102,600 102,600 112,600 10,000 0 10,000

Net 102,600 102,600 112,600 10,000 0 10,000


Intra-Directorate Transfer:

$10,000 is requested to be transferred from BC: CG5930O001 CC1000230. This transfer is to facilitate all the license fees for the branch is kept under one budget centre.

CG5870O006 - Transfers To and From Reserves

Revenue (5,590,820) (5,590,820) (5,590,820) 0 0 0

Expense 44,837,033 65,768,217 65,918,217 0 150,000 150,000

Net 39,246,213 60,177,397 60,327,397 0 150,000 150,000


Transfer of the December 2016 Budget surplus to the Cultural Precinct Reserve.





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Office of the CEOCG5930O002 - Taxation

Revenue 0 0 0 0 0 0

Expense 945,400 945,400 935,400 (10,000) 0 (10,000)

Net 945,400 945,400 935,400 (10,000) 0 (10,000)



$10,000 is requested to be transferred to BC: CG5850O004 CC1000669. This transfer is to facilitate all the license fees for the branch is kept under one budget centre.

CG6000O001 - Legal Services Operations

Revenue (6,000) (6,000) (6,000) 0 0 0

Expense 1,905,980 2,038,440 2,073,447 0 35,007 35,007

Net 1,899,980 2,032,440 2,067,447 0 35,007 35,007



$35,007 is requested to be transferred non recurrently from Corporate Risk Governance BC: CG6070O002 to Corporate Compliance Project (CC1001140) to cover the cost of the Projectfrom 1 July 2016 to end of October 2016





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Office of the CEOCG6020O001 - Contract Superintendent Admin

Revenue 0 0 0 0 0 0

Expense 12,800 12,800 211,140 340,000 (141,660) 198,340

Net 12,800 12,800 211,140 340,000 (141,660) 198,340


Inter-Directorate Transfer.

$198,340 net budget is requested to be transferred from Strategic Planning & improvements Branch, City Infrastructure to Contract Superintendent Admin (CC1002935), City Solicitor,Office of the CEO to cover 4.2 FTE Contract Administration positions for the 7 months commencing from December 2016.





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Office of the CEOCG6070O001 - Salaries Corporate Safety and Risk

Revenue 0 0 0 0 0 0

Expense 3,957,870 3,997,881 3,889,400 (106,960) (1,521) (108,481)

Net 3,957,870 3,997,881 3,889,400 (106,960) (1,521) (108,481)


Inter-Directorate Transfer: $106,960 Expenditure Reduction.

Corporate Safety and Risk's Safety Advisors - $106,960 is requested to be transferred from CC1005444 to Community Services BC: CS4060O001, CC 1002897 as part of the changes tothe Community Services Safety structure, re-alignment of the safety structures and competencies it has been recognised that 1 FTE of Corporate Safety and Risk's Safety Advisors isbetter position to provide support to Council in Community Services reporting to the newly redesigned L8 position.

Procurement Savings: $1,521

$1,521 Procurement savings on Labour Hire Contract LG314/411/11/129T





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Office of the CEOCG6070O002 - Risk Governance Services

Revenue 0 0 0 0 0 0

Expense 351,800 688,663 462,941 0 (225,722) (225,722)

Net 351,800 688,663 462,941 0 (225,722) (225,722)


Inter-Directorate Transfer:

$190,000 is requested to be transferred to Business Innovation and Technology Services BC:OS7520O003 CC1002971 (non-recurrent) Organisational Services for the Cyber ResilienceProgram as per the Audit Advisory Committee Report November 2016 .


$35,007 is requested to be transferred non recurrently to Corporate Compliance Project (CC1001140) to cover the cost of the Project from 1 July 2016 to end of October 2016.

Procurement Savings: $715

$715 Procurement savings on Labour Hire Contract LG314/411/11/129T





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Office of the CEOCG6070O003 - Health and Injury Management Services

Revenue 0 0 0 0 0 0

Expense 776,455 1,176,108 1,172,131 0 (3,977) (3,977)

Net 776,455 1,176,108 1,172,131 0 (3,977) (3,977)

Justification:$3,977 Expenditure Reduction



CG6070O007 - External Training Overhead

Revenue 0 0 0 0 0 0

Expense 26,100 36,100 35,500 (600) 0 (600)

Net 26,100 36,100 35,500 (600) 0 (600)

Justification:$600 Expenditure Reduction.

Inter-Directorate Transfer:

$600 transferred recurrently from CC1006826 to BC: CS4060O001 CC1002896 to support the training for the position transferred to Community Services Community Safety Structure.





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Office of the CEOCG6070O009 - WHS Governance Services

Revenue (130,000) (130,000) (130,000) 0 0 0

Expense 1,351,290 1,614,739 1,567,450 0 (47,289) (47,289)

Net 1,221,290 1,484,739 1,437,450 0 (47,289) (47,289)


Inter-directorate Transfer - $10,000

$10,000 is requested to be transferred to BC: CS4060O001 CC1002897 to fund the start up costs of the new safety department in Community Services.


$331 Procurement savings on Labour Hire Contract LG314/411/11/129T and $36,958 savings on Alcohol and Other Drug Testing Contract LG314/411/17/013.





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Office of the CEOCG6100O001 - Corp Planning Performance

Revenue 0 0 0 0 0 0

Expense 2,413,850 2,764,524 2,775,294 0 10,770 10,770

Net 2,413,850 2,764,524 2,775,294 0 10,770 10,770


General Review: $25,000 (increase)

The review of Gold Coast 2020 by April 2017 was recently endorsed by the GA Committee (10 November 2016) and Council (15 November 2016). Council resolution of GA committeereport. G16.1115.020. While the plan will be reviewed and revised utilising existing internal resources, funding is required for report design, printing and community engagement -$25,000.

Procurement Savings: $14,230 (reduction)






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Office of the CEOCG6180C001 - Council Support Branch Management

Revenue 0 0 0 0 0 0

Expense 0 0 13,000 0 13,000 13,000

Net 0 0 13,000 0 13,000 13,000


General Review:

$13,000 is requested to purchase an UPS Output Distribution Board. The Audio Visual Videopro system in the Council Chambers requires an UPS Output Distribution Board to ensureduring storms and power outages the system is not affected.

Note: Due to the storm of Wednesday 9 November 2016, two of the power boards that operate Councillor monitors were affected and were not able to be used during a Committeemeeting.

CG6370O001 - Asset Management Governance

Revenue 0 0 0 0 0 0

Expense 1,283,240 1,303,747 1,210,637 0 (93,110) (93,110)

Net 1,283,240 1,303,747 1,210,637 0 (93,110) (93,110)



$93,110 oncosted labour cost for the Temporary position CG292 loaded to incorrect Budget Centre (CC1005628) transferred to BC: CG6370O002 CC1005650.





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Office of the CEOCG6370O002 - Asset Management Improvement Program

Revenue 0 0 0 0 0 0

Expense 0 22,401 114,265 0 91,864 91,864

Net 0 22,401 114,265 0 91,864 91,864



$93,110 oncosted labour cost for the Temporary position CG292 loaded to incorrect BC: CG6370O001 CC1005628 transferred to BC: CG6370O002 CC1005650.







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Total Movement

Revenue (95,844,616) (232,283,220) (234,752,121) 517,000 (2,985,901) (2,468,901)

Expense 64,887,297 98,105,991 98,783,213 82,440 594,782 677,222

Net (30,957,319) (134,177,229) (135,968,908) 599,440 (2,391,119) (1,791,679)

Total for Directorate: Office of the CEO


Attachment 2




ES3010O001 - Operations - Heavy Plant Oncosted Labour

Revenue 0 0 0 0 0 0

Expense 334,700 322,884 (780,652) (1,065,683) (37,853) (1,103,536)

Net 334,700 322,884 (780,652) (1,065,683) (37,853) (1,103,536)

Justification:$968,803 Expenditure Transfer.Redistribution of overtime budget to ES3540 Operations - Medium/Heavy Trucks Oncosted Labour & ES3550 Operations - Transfer/Water Trucks Oncosted Labour to ensure full visibilityof the operating costs of individual operations.

$96,880 Expenditure Transfer.Redistribution of allowances budget to ES3540 Operations - Medium/Heavy Trucks Oncosted Labour & ES3550 Operations - Transfer/Water Trucks Oncosted Labour to ensure fullvisibility of the operating costs of individual operations.

$37,853 Expenditure Transfer.Procurement savings have been identified in the contracts for Intermittent Hire of Heavy and Minor Plant (LG314/411/14/074) and Labour Hire (LG314/411/11/129T). Savings are beingtransferred to the Chief Procurement Office to offset the procurement target for 2016-17.

ES3180O001 - Fleet Admin & Management Oncosted Labour

Revenue 0 0 0 0 0 0

Expense 1,442,480 1,683,810 1,589,560 (94,250) 0 (94,250)

Net 1,442,480 1,683,810 1,589,560 (94,250) 0 (94,250)

Justification:$94,250 Expenditure Transfer.Inter-directorate transfer of position ES1094 Senior Technical Compliance Officer to Community Services.





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Organisational ServicesES3540O001 - Operations - Med/Hvy Trucks Oncostd Lab

Revenue 0 0 0 0 0 0

Expense 1,000 (95,170) 391,161 486,331 0 486,331

Net 1,000 (95,170) 391,161 486,331 0 486,331

Justification:$442,119 Expenditure Transfer.Redistribution of overtime budget from ES3010 Operations - Heavy Plant Oncosted Labour to ensure full visibility of the operating costs of individual operations.

$44,212 Expenditure Transfer.Redistribution of allowances budget from ES3010 Operations - Heavy Plant Oncosted Labour to ensure full visibility of the operating costs of individual operations.

ES3550O001 - Ops - Transfer/Water Trucks Oncosted Lab

Revenue 0 0 0 0 0 0

Expense 1,000 1,000 580,352 579,352 0 579,352

Net 1,000 1,000 580,352 579,352 0 579,352

Justification:$526,684 Expenditure Transfer.Redistribution of overtime budget from ES3010 Operations - Heavy Plant Oncosted Labour to ensure full visibility of the operating costs of individual operations.

$52,668 Expenditure Transfer.Redistribution of allowances budget from ES3010 Operations - Heavy Plant Oncosted Labour to ensure full visibility of the operating costs of individual operations.





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Organisational ServicesOS6860O001 - Administration Services Operations

Revenue 0 0 0 0 0 0

Expense 255,040 317,967 301,259 0 (16,708) (16,708)

Net 255,040 317,967 301,259 0 (16,708) (16,708)

Justification:$16,708 Expenditure Transfer.Procurement savings have been identified in the contract for Labour Hire (LG314/411/11/129T). Savings are being transferred to the Chief Procurement Office to offset the procurementtarget for 2016-17.

OS6900C001 - Depot Improvements

Revenue 0 0 (14,900) 0 (14,900) (14,900)

Expense 3,991,850 7,079,264 7,079,264 0 0 0

Net 3,991,850 7,079,264 7,064,364 0 (14,900) (14,900)

Justification:$14,900 Revenue Increase.Solar rebate received for Tugun Depot solar installation project (Receipt #29335610 14/11/2016).





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Organisational ServicesOS6900O001 - Depot Facilities

Revenue 0 0 0 0 0 0

Expense 661,440 723,611 714,968 0 (8,643) (8,643)

Net 661,440 723,611 714,968 0 (8,643) (8,643)

Justification:$8,643 Expenditure Transfer.Procurement savings have been identified in the contracts for Intermittent Hire of Heavy and Minor Plant (LG314/411/14/074) and Labour Hire (LG314/411/11/129T). Savings are beingtransferred to the Chief Procurement Office to offset the procurement target for 2016-17.

OS6970C003 - Building Improvements Capital

Revenue 0 (150,000) (155,000) 0 (5,000) (5,000)

Expense 5,472,900 5,494,900 5,718,330 0 223,430 223,430

Net 5,472,900 5,344,900 5,563,330 0 218,430 218,430





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Organisational ServicesJustification:$5,000 Revenue Transfer & $5,000 Expenditure Transfer.Inter-directorate transfer from City Infrastructure Local Area Works program as a contribution towards the Mudgeeraba Office refurbishment.

$225,000 Expenditure Transfer.Inter-directorate transfer from OCEO as contribution towards Waterside courtyard works.

$6,570 Expenditure Transfer.Procurement savings have been identified in the contract for a Corporate Building Asset Survey Report (LG314/621/17/059). Savings are being transferred to the Chief ProcurementOffice to offset the procurement target for 2016-17.

Nil impact.Realignment of budgets for Waterside, Karp & Nerang etc building improvements.This transfer of budgets between projects is required to ensure project funding is accurately recorded. There is a nil effect on the budget from these transfers.62014 Chambers Asset Renewal Program ($32,000) 62347 Palm Beach Office Building Improvements $31,30062050 GCCC Accommodation Planning $45,000 62348 Mudgeeraba Cr. Building Improvement $2,00062057 Accommodation Management ($95,000) 62349 Coolangatta Building Improvements ($10,000)62087 Nerang Air Conditioning Replace ($17,000) 62350 Waterside Courtyard Renewal ($175,000)62094 Nerang Carpark Upgrade ($39,000) 62391 Burleigh Refurbishment $76,20062105 Nerang Parking Improvements $45,000 62400 Waterside Basement Lighting $75,00062146 Southport Office Renov Toilets & Bathroom ($60,000) 62402 Nerang BCC Carpark ($15,000)62167 Southport Office Solar Installation $21,000 62409 Waterside Lighting ($85,000)62190 Nerang Roof Replace/Repair ($57,700) 62414 Karp Court External Paint $50,00062222 Waterside West Level 4 $20,000 62415 Waterside West Lift Replacement $450,00062232 Waterside East Ground Floor $350,000 62416 Waterside Expansion Joints $75,00062251 Karp Court Asset Renewal ($879,800)62253 Karp Court Ground Floor $448,10062285 Waterside East Level 5 $60,00062320 Nerang Fitout $221,90062344 Nerang Hydraulic Repairs ($55,000)62345 Waterside East Lift Replacement ($450,000)





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Organisational ServicesOS6970O002 - Building Maintenance

Revenue 0 (30,000) (30,000) 0 0 0

Expense 5,159,380 5,240,776 5,228,404 0 (12,372) (12,372)

Net 5,159,380 5,210,776 5,198,404 0 (12,372) (12,372)

Justification:$12,372 Expenditure Transfer.Procurement savings have been identified in the contracts for Intermittent Hire of Heavy and Minor Plant (LG314/411/14/074) and Labour Hire (LG314/411/11/129T). Savings are beingtransferred to the Chief Procurement Office to offset the procurement target for 2016-17.

OS7100O002 - Rating & Billing Services

Revenue 0 0 0 0 0 0

Expense 3,069,100 3,069,100 2,195,880 (873,220) 0 (873,220)

Net 3,069,100 3,069,100 2,195,880 (873,220) 0 (873,220)

Justification:$714,000 Expenditure Transfer. Nil impact.Transfer of water meter reading contract budget to Gold Coast Water. Nil impact - offset by reduction in OS7800S013.

$159,220 Expenditure Transfer. Nil impact.Transfer of the following water meter reading positions to Gold Coast Water, effective 1st January 2017:OS1157 Team Leader Water Meter ReadingOS1160 Billing Officer Water Meter ReadingOS1187 Billing Officer Water Meter ReadingOS1188 Billing Officer Water Meter ReadingNil impact - offset by reduction in OS7800S013.





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Organisational ServicesOS7100O008 - Cost Centre Plant Overhead

Revenue 0 0 0 0 0 0

Expense 0 27,400 0 (27,400) 0 (27,400)

Net 0 27,400 0 (27,400) 0 (27,400)

Justification:$27,400 Expenditure Transfer. Nil impact.Transfer of two water meter reading vehicles to Gold Coast Water (plant numbers 50000350 & 50002770). Nil impact - offset by reduction in OS7800S013.

OS7190O001 - Receivables Management

Revenue 0 0 0 0 0 0

Expense 2,233,430 2,232,586 2,229,877 0 (2,709) (2,709)

Net 2,233,430 2,232,586 2,229,877 0 (2,709) (2,709)






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Organisational ServicesOS7190O008 - Bank Fees & Charges

Revenue (1,291,500) (1,291,500) (1,191,500) 100,000 0 100,000

Expense 2,917,680 2,917,680 2,917,680 0 0 0

Net 1,626,180 1,626,180 1,726,180 100,000 0 100,000

Justification:$100,000 Revenue Decrease.

As a result of amendments to the Competition and Consumer Act 2010, the amount of the merchant service fee recoverable from consumers must not exceed the cost of acceptance ofthat card system. In Council’s case, there are 10 card systems acceptable (5 for each of MasterCard and Visa).

Previously, a merchant could calculate a blended rate to ensure the total costs incurred by all card systems could be applied conditional upon the total amount recovered not exceedingthe total costs incurred. Under the most recent amendments, the merchant must calculate this charge at the card system level. In cases where this cannot be achieved, the recoverablecost must not exceed the cost of the lowest card system charges. In view of this amendment, Council’s recoverable merchant service fee rate will reduce from 0.6% to 0.38%.

The estimated loss in revenue will be $100,000 for the remainder of the 2016-17 financial year.

OS7210O001 - Customer Contact - Operations

Revenue (2,555,225) (2,555,225) (2,555,225) 0 0 0

Expense 8,227,510 8,245,020 8,234,954 0 (10,066) (10,066)

Net 5,672,285 5,689,795 5,679,729 0 (10,066) (10,066)






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Organisational ServicesOS7520O003 - Business Engagement Operations

Revenue 0 0 0 0 0 0

Expense 0 0 190,000 0 190,000 190,000

Net 0 0 190,000 0 190,000 190,000

Justification:$190,000 Expenditure Transfer.A cyber resilience assessment was performed across the City of Gold Coast from February to August 2016 in response to recommendations made in the City of Gold Coast Internal AuditReport 2014-2015:#07 - Cyber Security Profile, Improving Council’s Cyber Resilience. The assessment identified 4 aggregated cyber risks. As a result of the findings, the responsibilityfor the project was moved from Corporate Safety and Risk to Business Innovation and Technology Services.

OS7530O004 - Telecommunication Services - External

Revenue 0 0 0 0 0 0

Expense 1,299,200 1,299,200 2,649,200 1,350,000 0 1,350,000

Net 1,299,200 1,299,200 2,649,200 1,350,000 0 1,350,000

Justification:$450,000 Expenditure Transfer.Transfer of external managed service fees funded from the corporate communications budget (OS7810O003) to a centralised location for all related costs in Business Innovation andTechnology Services branch. Nil impact to the budget.

$900,000 Expenditure Transfer.Transfer of operating costs for corporate communications services (OS7810O003) to a centralised location for all related costs in Business Innovation and Technology Services branch.Nil impact to the budget.





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Organisational ServicesOS7730O002 - Procurement Services Administration

Revenue 0 0 0 0 0 0

Expense (5,000,000) (3,595,360) (2,598,263) 90,384 906,713 997,097

Net (5,000,000) (3,595,360) (2,598,263) 90,384 906,713 997,097

Justification:$997,097 Expenditure Transfer. Procurement Savings.Recognition of procurement savings Directorates have loaded for the period September to November 2016.

OS7790O001 - Procure to Pay

Revenue 0 0 0 0 0 0

Expense 1,200,820 1,180,790 1,143,260 0 (37,530) (37,530)

Net 1,200,820 1,180,790 1,143,260 0 (37,530) (37,530)






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Organisational ServicesOS7800S013 - SLA Services to Gold Coast Water

Revenue 0 0 0 0 0 0

Expense (16,923,000) (16,923,000) (16,022,380) 900,620 0 900,620

Net (16,923,000) (16,923,000) (16,022,380) 900,620 0 900,620

Justification:$900,620 Revenue Transfer. Nil impact.Nil impact - offset by reduction in OS7100O002 & OS7100O008. Adjustment to Service Level Agreement between Organisational Services and Gold Coast Water for:

$714,000 - Transfer of water meter reading contract to Gold Coast Water.

$27,400 - Transfer of two water meter reading vehicles to Gold Coast Water (plant numbers 50000350 & 50002770).

$159,220 - Transfer of water meter reading positions to Gold Coast Water, effective 1st January 2017:OS1157 Team Leader Water Meter ReadingOS1160 Billing Officer Water Meter ReadingOS1187 Billing Officer Water Meter ReadingOS1188 Billing Officer Water Meter Reading





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Organisational ServicesOS7810O003 - Corporate Expense - Phone & Data

Revenue 0 0 0 0 0 0

Expense 1,730,800 1,761,710 411,710 (1,350,000) 0 (1,350,000)

Net 1,730,800 1,761,710 411,710 (1,350,000) 0 (1,350,000)

Justification:$450,000 Expenditure Transfer.Transfer of external managed service fees funded from the corporate communications budget to a centralised location for all related costs in Business Innovation and TechnologyServices branch (OS7530O004). Nil impact to the budget.

$900,000 Expenditure Transfer.Transfer of operating costs for corporate communications services to a centralised location for all related costs in Business Innovation and Technology Services branch (OS7530O004).Nil impact to the budget.

OS7950O005 - People & Culture GC2018

Revenue (1,392,370) (1,392,370) 0 0 1,392,370 1,392,370

Expense 1,392,370 1,392,370 0 0 (1,392,370) (1,392,370)

Net 0 0 0 0 0 0

Justification:$1,392,370 Expenditure Transfer & $1,392,370 Revenue TransferTransfer of People & Culture GC2018 budgets to EDMP, to reside with the Commonwealth Games budget.





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Organisational ServicesOS7970O002 - Organisational Capability Strategies

Revenue 0 0 0 0 0 0

Expense 772,200 772,200 755,450 0 (16,750) (16,750)

Net 772,200 772,200 755,450 0 (16,750) (16,750)


OS7980O001 - Performance & Engagement Labour

Revenue 0 0 0 0 0 0

Expense 1,283,190 1,283,190 1,352,990 30,000 39,800 69,800

Net 1,283,190 1,283,190 1,352,990 30,000 39,800 69,800

Justification:$30,000 Expenditure Increase.Additional funds required for market equity payment for the case management team.

$39,800 Expenditure Increase.Additional funds required for a temporary position (Level 4) from January to June 2016 to provide support to the case management team.





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Revenue (529,853,081) (540,806,462) (539,333,992) 100,000 1,372,470 1,472,470

Expense 98,379,441 138,143,459 137,994,535 26,134 (175,058) (148,924)

Net (431,473,640) (402,663,003) (401,339,457) 126,134 1,197,412 1,323,546


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Planning and Environment

PE5000O002 - City Dev Mgmt

Revenue (343,935) (343,935) (343,935) 0 0 0

Expense 4,125,312 4,026,739 4,025,937 0 (802) (802)

Net 3,781,377 3,682,804 3,682,002 0 (802) (802)

Justification: Expense Decrease ($802) Procurement Savings - Labour Hire Contract.

PE5010O001 - Development Compliance

Revenue (1,341,985) (1,341,985) (1,391,985) 0 (50,000) (50,000)

Expense 4,166,140 4,166,140 4,165,787 0 (353) (353)

Net 2,824,155 2,824,155 2,773,802 0 (50,353) (50,353)

Justification:Revenue Increase ($50,000) - High levels of development activity are continuing across the City. Whilst activity levels are not as high as those of this time last financial year, a totalincrease of $2.0 million in revenue from Fees and Charges within the Directorate has been projected as part of this review. In this budget centre, an increase of $50,000 has beenidentified.

Expense Decrease ($353): Procurement Savings - Labour Hire Contract.





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Planning and EnvironmentPE5050O001 - P&E - Legals

Revenue 0 0 0 0 0 0

Expense 5,623,753 5,623,753 6,623,753 0 1,000,000 1,000,000

Net 5,623,753 5,623,753 6,623,753 0 1,000,000 1,000,000

Justification:Expense Increase: $1,000,000 - It has been identified that a budgetary increase is required to the Planning & Environmental Legal Expenses budget for costs

PE5100O004 - Applications Maintenance & Support

Revenue 0 0 0 0 0 0

Expense 355,014 352,413 347,725 0 (4,688) (4,688)

Net 355,014 352,413 347,725 0 (4,688) (4,688)

Justification:Expense Decrease ($4,688): Procurement Savings - Labour Hire Contract.





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Planning and EnvironmentPE5100O005 - Business Support Administration

Revenue 0 0 0 0 0 0

Expense 4,215,078 4,203,652 4,294,330 0 90,678 90,678

Net 4,215,078 4,203,652 4,294,330 0 90,678 90,678

Justification:Expense Increase $96,640 - A realignment of labour budget allocations is required due to revised organisational structures within the directorate. Labour allocation of $96,640 has beentransferred to this section from budget centre PE5130O001 - City Plan.

Expense Decrease ($5,962): Procurement Savings - Labour Hire Contract.

PE5120O003 - Flooding & Drainage

Revenue (85,000) (85,000) (85,000) 0 0 0

Expense 2,071,992 2,070,582 2,067,874 0 (2,708) (2,708)

Net 1,986,992 1,985,582 1,982,874 0 (2,708) (2,708)






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Planning and EnvironmentPE5130O001 - City Planning

Revenue 0 0 0 0 0 0

Expense 0 3,225,777 3,021,374 (96,080) (108,323) (204,403)

Net 0 3,225,777 3,021,374 (96,080) (108,323) (204,403)

Justification:Expense Decrease ($192,720) - A realignment of labour budget allocations is required due to revised organisational structures within the directorate. Labour allocations of $96,640 hasbeen transferred from this section to budget centre PE5100O005 - Business Support and $96,080 from this budget centre to budget centre PE5130O002 - Regional Planning

Expense Decrease ($11,124): Procurement Savings - Labour Hire Contract; Update to Land Development Guidelines; Planning Act 2016 Alignment.

PE5130O002 - Regional Planning

Revenue 0 0 0 0 0 0

Expense 0 1,778,165 1,851,101 96,080 (23,144) 72,936

Net 0 1,778,165 1,851,101 96,080 (23,144) 72,936

Justification:Expense Increase $96,640 - A realignment of labour budget allocations is required due to revised organisational structures within the directorate. Labour allocation of $96,640 has beentransferred to this section from budget centre PE5130O001 - City Plan.

Expense Decrease ($23,144): Procurement Savings - Housing needs Planning investigation and Labour Hire Contract.





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Planning and EnvironmentPE5140O001 - Strategic Infrastructure

Revenue 0 0 0 0 0 0

Expense 478,593 1,459,100 3,017,100 0 1,558,000 1,558,000

Net 478,593 1,459,100 3,017,100 0 1,558,000 1,558,000

Justification:Local Government Infrastructure Plan (LGIP) - Expense Increase $1.558 million:The City is legislatively required to have a new LGIP in place by 1 July 2018. A draft LGIP is proposed to be adopted by Council in May 2017 to enable a State interest check and also acommunity consultation process to be undertaken in order to meet this legislative deadline. Should this deadline not be achieved, the City’s ability to levy infrastructure charges is likely tobe adversely impacted. No additional non-recurrent funding was requested for this project in the 2016-17 initial budget (noting reprovisions of approximately $1 million being carried forward from 2015-16) whileadditional resourcing needs for networks were being evaluated to incorporate the emerging requirements of the compliance review and the evolving landscape of infrastructure planningacross the state. This scoping has now been completed and additional funding of $1,558,000 is requested for 2016-17 to complete the initial draft LGIP. Key reasons for the additionalfunding required are:

· Project management resources required to be substantially increased, in terms of both quantity and specialist skills, given the significance and ramifications of the project· Compliance review and emerging issues in relation to stormwater resulted in specialised assistance not anticipated by the network in original budget submissions· Compliance review identified differing interpretations of statutory guideline resulting in additional work and effort for parks, transport and stormwater networks (internal and external)

Further funding will be required for the 2017-18 financial year to progress the draft LGIP as a City Plan amendment and to commence LGIP major amendment 1.





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Planning and EnvironmentPE5150O007 - City Planning Management

Revenue 0 0 0 0 0 0

Expense 870,059 869,723 869,029 0 (694) (694)

Net 870,059 869,723 869,029 0 (694) (694)

Justification:Expense Decrease ($694): Procurement Savings - Labour Hire Contract.

PE5160C001 - Centre Improvement Program - Capital

Revenue 0 (1,514,046) (1,564,046) 0 (50,000) (50,000)

Expense 1,328,000 6,623,290 6,654,190 0 30,900 30,900

Net 1,328,000 5,109,244 5,090,144 0 (19,100) (19,100)

Justification:Revenue Increase ($50,000) / Expense Increase $50,000: In accordance with Council Resolution G16.1129.028, $400,000 is being transferred from the CIP Capital project to theBroadbeach Surf Parade project in this budget review. In addition, funding of $50,000 has been made available for this project from the Digital Cities component of CommonwealthGames funding. Total increase to the budget for the Surf Parade project is $450,000.

Expense Decrease $3,926: The Burleigh Heads - Trial Timber Decks project has been successfully completed with savings of $7,852 being achieved. As this project was 50% funded viaLocal Area Works, $3,926 is being returned to Local Area Works within City Infrastructure directorate in this budget review.

Expense Decrease $15,173: Procurement Savings for Intermittent Hire of Heavy and Minor Equipment and Labour Hire have been identified within this budget centre.





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Planning and EnvironmentPE5160O001 - City Place Making

Revenue 0 0 0 0 0 0

Expense 865,245 932,597 932,168 0 (429) (429)

Net 865,245 932,597 932,168 0 (429) (429)

Justification:Expense Decrease ($429): Procurement Savings - Labour Hire Contract.

PE5170O001 - Office of the City Architect

Revenue 0 0 0 0 0 0

Expense 1,526,991 1,586,991 1,584,114 0 (2,877) (2,877)

Net 1,526,991 1,586,991 1,584,114 0 (2,877) (2,877)






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Planning and EnvironmentPE5200O001 - Planning Assessment MCU & ROL

Revenue (10,948,155) (10,948,155) (11,648,155) 0 (700,000) (700,000)

Expense 5,484,845 5,369,625 5,369,625 0 0 0

Net (5,463,310) (5,578,530) (6,278,530) 0 (700,000) (700,000)


PE5210O001 - Plumbing & Drainage

Revenue (8,699,710) (8,699,710) (9,349,710) 0 (650,000) (650,000)

Expense 3,189,147 3,189,147 3,189,147 0 0 0

Net (5,510,563) (5,510,563) (6,160,563) 0 (650,000) (650,000)






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Planning and EnvironmentPE5210O006 - Operational Works - Assessment

Revenue (1,281,480) (1,281,480) (1,381,480) 0 (100,000) (100,000)

Expense 1,097,230 1,085,430 1,085,430 0 0 0

Net (184,250) (196,050) (296,050) 0 (100,000) (100,000)


PE5230O001 - Contrib. Assets & Development Compliance

Revenue (3,882,000) (3,882,000) (4,382,000) 0 (500,000) (500,000)

Expense 4,515,520 4,587,920 4,587,769 0 (151) (151)

Net 633,520 705,920 205,769 0 (500,151) (500,151)


Expense Decrease ($151): Procurement Savings - Labour Hire Contract.





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Planning and Environment





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Revenue (30,424,453) (31,938,499) (33,988,499) 0 (2,050,000) (2,050,000)

Expense 69,825,972 76,601,633 79,137,042 0 2,535,409 2,535,409

Net 39,401,519 44,663,134 45,148,543 0 485,409 485,409

Note: The Revised and Proposed Budget represents the Current Revised Budget and not the budget of any prior review being reported.


Attachment 2



These Pages

Numbered 1 to 99

Constitute The Adopted Report Of The Meeting

Of The Special Budget Committee

Held Monday 30 January 2017