QUARTERLY BUDGET REVIEW MARCH 2016 - Mid-Western … · Ordered Work - Sydney Road Asphalt $452k Ordered Work - Ilford Rest Area Septic Upgrade $36k Ordered Work - Guardrail Replacement

16 MAY 2016

MID-WESTERN REGIONAL COUNCIL

CORPORATE: FINANCE

QUARTERLY BUDGET REVIEW

MARCH 2016

ATTACHMENTS

CORPORATE: FINANCE

PAGE 2 OF 65 MID-WESTERN REGIONAL COUNCIL

THIS DOCUMENT HAS BEEN PREPARED BY LEONIE JOHNSON, CHIEF FINANCIAL OFFICER FOR MID-WESTERN REGIONAL COUNCIL. ANY QUESTIONS IN RELATION TO THE CONTENT OF THIS DOCUMENT SHOULD BE DIRECTED TO: [email protected] OR (02) 6378 2850 DATE OF PUBLICATION: 16 MAY 2016

CORPORATE: FINANCE

MID-WESTERN REGIONAL COUNCIL PAGE 3 OF 65

Table of Contents

1. Proposed Budget Variations & Cash Position .................................................................. 4

1.1 General Fund .............................................................................................................................. 4

1.2 Water Fund ................................................................................................................................12

1.3 Sewer Fund ...............................................................................................................................14

1.4 Waste Fund ...............................................................................................................................16

1.5 Other Funds ...............................................................................................................................17

2. Developer Contributions – Section 64, 94 and 93F ........................................................ 18

3. Loan Borrowings ............................................................................................................ 20

4. Reserves ........................................................................................................................ 21

4.1 Internally Restricted Reserves ...................................................................................................21

4.2 Externally Restricted Reserves ..................................................................................................21

5. Budget Summary ........................................................................................................... 24

5.1 Connecting Our Region .............................................................................................................24

5.2 Good Government .....................................................................................................................29

5.3 Looking after Our Community ....................................................................................................31

5.4 Protecting our Natural Environment ...........................................................................................33

5.5 Building a Strong Local Economy ..............................................................................................35

6. Capital Works Program .................................................................................................. 37

7. Consolidated Income Statement and Balance Sheet ..................................................... 52

8. Key Financial Indicators ................................................................................................. 54

9. Contract, Legal Expenses & Consultancies .................................................................... 57

10. Investment Portfolio Commentary .................................................................................. 59

11. Investment Portfolio Balances as at 31 March 2016....................................................... 61

12. Councillor Fees Paid & Expenses Paid or Reimbursed as at 31 March 2016................. 64

CORPORATE: FINANCE


1. Proposed Budget Variations & Cash Position

1.1 General Fund

Council finished the 2015 financial year with an unrestricted cash balance of $9.606 million. The 2016 Original Budget for General Fund as adopted by Council projected a negative movement to 30 June 2016 in unrestricted cash of $319k. Council has since adopted the following budget movements, summarised below.

VARIATION AMOUNT ($’000) MOVEMENT Original Budget (319) Deterioration Revotes (408) Deterioration Council Minutes – July to Mar (1,888) Deterioration September QBR (747) Deterioration December QBR (93) Deterioration March QBR proposed variations 1,352 Improvement Estimated movement to 30 June 2016 (2,103) Deterioration Projected balance at 30 June 2016 7,503

A projected unrestricted cash balance of $7.503 million represents about 7 weeks of Council’s 2015/16 operating expenditure budget. This is a high level of unrestricted cash, and is adequate to ensure Council is able to meet its debts and obligations as they fall due.

Proposed variations to the 2015/16 Operational Plan for General Fund are shown below.

COMMUNITY PLAN THEME VARIATION AMOUNT GENERAL FUND

Positive Variations

Good Government Executive support - employee cost savings due to vacancies 129,000 F

Good Government Corporate planning - savings in IP&R reporting requirements 5,000 F

Good Government Government lobbying - savings due to reduced travel requirements (local members) 10,000 F

Good Government Strategic initiatives - savings due to in house implementation of initiatives 10,000 F

Good Government Information Technology - savings due to staff vacancies 42,000 F

Good Government Australia Day celebrations – savings 4,000 F

Building a Strong Local Economy Corporate development - savings due to staff vacancies 85,000 F

CORPORATE: FINANCE


Building a Strong Local Economy Economic development - savings in consultancy costs 20,000 F

Looking after our Community Strategic planning - savings due to staff vacancies 252,000 F

Good Government Members expenses - savings in councillor training $10k, meetings $12k, conferences $5k and lobbying $10k 37,000 F

Good Government VOIP Telephone System - anticipated savings in project delivery 10,000 F

Good Government Financial services - savings from staff vacancies 69,000 F

Good Government Staff leave entitlements - savings due to reduced workers compensation insurance based on reduced claims 150,000 F

Good Government Mudgee depot carpark - savings on construction 20,000 F

Good Government Staff training - increased apprentice grants received $8k, and savings on training program $60k 68,000 F

Looking after our Community Regional arts gallery - defer budget for investigating options to 2016/17 30,000 F

Protecting our Natural Environment Weeds council roads - savings in employee costs due to vacancies $60k, and plant hire $18k, and chemicals $2k 80,000 F

Protecting our Natural Environment Weeds operations - savings due to staff vacancies $45k, and increased revenue from noxious weeds certificates $8k 53,000 F

Good Government Asset Management System upgrades - defer further development to 16/17. Focus is currently on cleaning data. 15,000 F

Looking after our Community LEMC disaster plan - savings in consultant costs 5,800 F

Good Government General Insurance - Insurance reimbursement on corporate legal costs 28,000 F

Looking after our Community Rural halls maintenance - savings on rural hall contractors 4,500 F

Looking after our Community Local Government housing - savings on Denison St repairs 5,000 F

Looking after our Community Kandos Pool operations - insurance reimbursement for pump repairs covered under existing repair budget 7,300 F

Looking after our Community Drainage reserve maintenance - savings in reserve parks maintenance (see negative variations for increase to town approaches offset)

20,000 F

Looking after our Community GPS Cemetery sites - defer remaining budget allocation to 2016/17 ($40k project costs, $24k transfer from capital program reserves) 16,000 F

Connecting our Region Street lighting - increase grant funding contribution (RMS) ($34k), partially offset by increased electricity costs 24,000 F

CORPORATE: FINANCE


Connecting our Region

State Roads - increased allocation for RMS funded State road works ($4,950k), including: Ordered Work - Heavy Patching $1064k Ordered Work - Reseals $755k Ordered Work - Springfield Widenings $770k Ordered Work - Misc Accidents $22k Ordered Work - Guntawang Widening $1560k Ordered Work - Intersection Signage Hwy 18 $94k Ordered Work - Blackspot MR633 $16k Ordered Work - HW18 Drainage Works $113k Ordered Work - MR633 Drainage $19k Ordered Work - Sydney Road Asphalt $452k Ordered Work - Ilford Rest Area Septic Upgrade $36k Ordered Work - Guardrail Replacement $44k Ordered Work - Intersection Signage South $40k Offset by corresponding required expenditure budgets for above works, totalling $4,880k

105,000 F


Urban roads reseals savings - Reseals Church St Seg 70,80,90 $19,855 increase, offset by R2R funding increase Fitzgerald St Rylstone Seg 10 $12,000 reduction, savings Herbert St Gulgong $3,700 reduction, savings Dangar St Kandos $15,900, defer to 16/17 due to water main repairs Perry St Mudgee $9,300 increase Court St Mudgee $8,398 reduction, partially offset by reduction in transfer from asset replacement reserve $3,398 Lahey Crt Mudgee $6,300 reduction, savings Tip Road Gulgong $3,000 reduction, savings George St Mudgee $12,200, offset by reduction in transfer from asset replacement reserve Denison St seg 200 Mudgee, $1,500 increase Julia Court $3,000 reduction, savings Redbank Road $8,000 reduction due to savings, offset by reduced transfer from asset replacement reserve Market St seg 10 $5,800 increase Wandoona Crt Mudgee $1,200 reduction, savings Davidson St Gulgong $2,300 reduction, savings Dewhurst Drv Mudgee $25,000 reduction, savings offset by reduced transfer from asset replacement reserve Wenonah St $12,000 reduction, savings offset by reduction in transfer from asset replacement reserve Baskerville Drv Mudgee $5,300 reduction, savings Henry Bailey Drv $3,000 reduction, savings Lewis St Mudgee $2,600 reduction, savings Denison St $7,080 reduction, savings, offset by R2R funding

46,700 F

CORPORATE: FINANCE



Urban roads rehabs savings - Kellet Drv $20,000 reduction, offset by reduction in R2R funding Church St Rehab$18,200 reduction, offset by reduction in R2R funding Dangar St Kandos $62,000 reduction - works deferred to 16/17 with drainage, offset by reduction in R2R funding Jacques St Kandos $9,000 reduction, savings First Street $14,000 reduction, savings Cudgegong Road $10,000 reduction, savings Urban resheeting $2,000 increase to cover expenditure to date Lewis & Mortimer St intersection $27,000 increase, offset by an increase to R2R funding Sealing maintained roadds in Gulging CBD $15,780 reduction, savings offset by reduction in R2R funding

31,000 F


Rural sealed roads savings - Tree lopping $10,000 increase Linemarking $75,000 reduction Decrease in R2R funded works $122,375 Reseal Magpie Lan Seg 30,40,10,20 $580 increase, offset by R2R funding increase Reseal Yarrabin Rd Seg 140 $1,190 reduction, offset by R2R decrease Reseal Yarrabin Rd Seg 20,30,40 $41,985 reduction, offset by R2R funding decrease Reseal Windeyer Rd Seg 140,150 $2,850 increase, offset by R2R funding increase Reseal Black Springs Rd Seg 30,40,50 $5,490 increase, offset by R2R funding increase Reseal Bocoble Rd Seg 10,20 $24,280 increase, offset by R2R funding increase Rehab Lue Rd Final Seal Seg 60-70 $4,440 increase, offset by R2R funding increase Rehab Narrango Rd Seg 20 $7,160 increase, offset by R2R funding increase Rehab Lue Rd Seg 190,180 $124,000 reduction, offset by R2R funding decrease

65,000 F

Connecting our Region Rylstone Pedestrian Bridge - bridge works deferred to 17/18, currently allocated in draft 16/17 Operational Plan 141,600 F

Connecting our Region Regional Bridges - savings on Stoney Creek Bridge $141,500, partially offset by reduced grant funding $70,750, and an increase to Macdonalds Creek bridge work $20,750 (Block funded)

50,000 F

Connecting our Region Local Bridges - savings on Green Gully Bridge $120,000 and Butter Factory Bridge $94,600, partially offset by reduced grant funding $107,300

107,300 F

Connecting our Region Murragamba Road realignment - reduce contractors $253k, partially offset by reduction in capital contributions. Works mostly completed in 2014/15.

24,000 F

Protecting our Natural Environment Drainage Maintenance savings - reduction in maintenance as resources focused on drainage renewals 87,000 F

Total Positive Variations 1,857,200

Negative Variations

CORPORATE: FINANCE


Building a Strong Local Economy Event management - increase materials expenditure to cover CBD Christmas decorations (11,000) U

Good Government Event assistance - increase assistance to cover worthwhile late applications (2,000) U

Good Government Administration building capital - increase materials to improve customer service layout (10,000) U

Good Government Depot building capital - move forward planned works for housing the Disaster Recovery servers at Stores due to risk of damage to servers (20,000) U

Looking after our Community Ironed Out operations - increased costs in contractors $8k and reduced sales $5k, partially offset by savings on employee costs $8k (5,000) U

Good Government Corporate software - increase software implementation costs for new software initiatives (weeds administration software). See positive variation in weeds to cover this allocation

(30,000) U

Building a Strong Local Economy Airport operations - increased contractor costs $10k, insurance costs $8k, reduced landing fees $13k (note that the budget allocation for ground handling has been reallocated to contributions to local bodies as it is being paid directly to Pelican Air $135k).

(31,000) U

Building a Strong Local Economy Red Hill Reserve - Increase contractor expenditure to allow for fitout per Council resolution 01/16 (20,000) U

Looking after our Community Rylstone halls maintenance - increase water usage due to repair of existing meter (3,500) U

Looking after our Community Passive Parks building maintenance - increase to repairs and maintenance due to vandalism at Robinson Park ($9.5k), partially offset by insurance reimbursement ($4.5k)

(5,000) U

Looking after our Community Mudgee town hall building repairs - increase contractors for repairs due to water leakage (14,000) U

Looking after our Community Cahill Park storm damage repairs - allocate capital contractor budget for roof replacement ($20k), other storm repairs ($15k) - partially offset by insurance reimbursement ($30k)

(5,000) U

Looking after our Community Gulgong Pool operations - increase water rates ($50k) and contractor expenditure to repair pumps ($15k), partially offset by increased revenue ($6k)

(59,000) U

Looking after our Community Mudgee Pool operations - increase water rates ($10k) and employee costs ($10k) (20,000) U

Looking after our Community Town approaches maintenance - increase to parks maintenance costs for town approaches (see positive variation drainage reserve maintenance for offset)

(20,000) U

Connecting our Region Local unsealed roads grading - increase allocation to local road grading to complete works while whether conditions are suitable (200,000) U

Connecting our Region Resheeting unsealed regional roads allocate budget for required resheeting works (Block funded, see Regional Bridges in positive variations)

(50,000) U

Total Negative Variations (505,500)

Contra Variations

Building a Strong Local Economy Burrundulla land development - reduce development costs in 2015/16 240,000 C

Building a Strong Local Economy Burrundulla land development - transfer savings to Land Development Reserve (240,000) C

Good Government Corporate software - savings in ICT software licensing costs 15,000 C

CORPORATE: FINANCE


Good Government Corporate software - increase software implementation costs for new software initiatives (InfoCouncil, Leases & Licenses) (15,000) C

Good Government S94 Plan administration - savings in consultancy costs 10,000 C Good Government S94 Plan administration - reduce transfer from S94 (10,000) C Good Government CCTV Camera installation - defer works due to lack of grant funding 25,000 C

Good Government CCTV Camera installation - reduce grant funding income due to lack of grant funding (25,000) C

Good Government Server reconfiguration - savings due to planned consultancy work being completed in house 32,000 C

Good Government Server reconfiguration - reduce transfer from capital program reserves (32,000) C

Good Government Stores operations - savings on transport costs 5,000 C

Good Government Stores operations - reduce business unit oncosts (internal overheads) (5,000) C

Good Government Property income - sale of land in industrial avenue 26,000 C

Good Government Property income - transfer to land development reserve (26,000) C Good Government Property and revenue - increase reimbursement of debt recovery costs 20,000 C

Good Government Property and revenue - increase contractor costs for debt recovery (20,000) C

Good Government General insurance - reduce special liability premium costs 15,000 C Good Government General insurance - increase insurance claim excess payments (15,000) C

Looking after our Community Community buildings capital budget only - reduce budget allocation, works completed for year 25,000 C

Looking after our Community Community buildings capital budget only - reduce transfer from asset replacement reserve (25,000) C

Looking after our Community Percy Nott Public Toilet - completed under allocated budget, savings 9,000 C

Looking after our Community Percy Nott Public Toilet - reduce transfer from asset replacement reserve (9,000) C

Looking after our Community Public toilets minor building works - savings on minor programmed works, completed under budget 14,000 C

Looking after our Community Public toilets minor building works - reduce transfer from asset replacement reserve (14,000) C

Looking after our Community Aged care units - savings on Louee St repairs 4,000 C

Looking after our Community Aged care units - reduce transfer from asset replacement reserve (4,000) C

Looking after our Community Rylstone Hall capital works change of scope: reduce expenditure on replacement of electrical wiring, not required at this stage 50,000 C

Looking after our Community Rylstone Hall capital works change of scope: transfer allocation to replacement of the roofing and guttering (50,000) C

Looking after our Community Rural Fire Services hazard reduction - increase grant income for hazard reduction 10,047 C

Looking after our Community Rural Fire Services hazard reduction - increase contractor expenditure for hazard reduction (10,047) C

Looking after our Community Glen Willow cricket wicket - defer cricket wicket works to 16/17 30,000 C Looking after our Community Glen Willow cricket pitch - defer contribution to capital works to 16/17 (30,000) C

Looking after our Community Avisford reserve capital works - defer bike track works to 16/17 32,000 C

CORPORATE: FINANCE


Looking after our Community Avisford reserve capital works - reduce transfer from unspent grants ($20k) and capital program reserve ($12k) (32,000) C

Protecting our Natural Environment Denison St drainage - reduce budget on Winter St detention basin to cover Denison St prelim works (funded from asset replacement reserve)

3,500 C

Protecting our Natural Environment Denison St drainage - allocate budget to cover preliminary survey works before project was deferred (funded from asset replacement reserve)

(3,500) C


Ulan Road - defer scheduled capital works to 16/17 Midblock 19.999 to 22.215 $2,000 Mt Pleasant Ln to Buckaroo Ln $46,600 Church Ln to Overtaking Ln $750,000 Cope Rd to UCML Mine Entrance $3,000 Wattlegrove Ln to Midblock 19.999 $6,800 Wyaldra Ln to Quarry Entrance $4,000 Winchester Cres to Mid-block 31.106 $400,000

1,212,400 C

Connecting our Region Ulan Road - defer scheduled capital works to 16/17, reduce grant funding and capital contributions received (1,212,400) C

Connecting our Region Ulan Road - defer maintenance schedule to future years 390,000 C

Connecting our Region Ulan Road - defer maintenance schedule to future years, transfer balance to Ulan Road Strategy Reserve (390,000) C

Connecting our Region Local Bridge - Coricudgy bridge repairs, increase Roads to Recovery grant funding allocation 18,640 C

Connecting our Region Local Bridge - Coricudgy bridge repairs, increase allocation to cover scope (18,640) C

Connecting our Region Sealed regional roads - reduce transfer from VPA, Cope Road 55,300 C

Connecting our Region Sealed regional roads - defer Cope Road maintenance (55,300) C


Cope Road capital upgrades - defer portion of works to 16/17 Milestone 2 - $46,600 deferred Milestone 3 - move forward from 16/17 $110,000 Milestone 4 - $230,000 deferred Milestone 5 - $270,000 deferred

436,600 C

Connecting our Region Cope Road capital upgrades - defer portion of works to 16/17, reduce grant funding received (436,600) C

Connecting our Region Sealed regional roads - reduce transfer from VPA, Ulan Wollar Road 76,491 C

Connecting our Region Sealed regional roads - defer Ulan Wollar Road upgrades (76,491) C

Connecting our Region Bylong Valley Way - reduce heavy patching expenditure 20,000 C

Connecting our Region Bylong Valley Way - increase reseal 2225 to 2260 to cover linemarking expense (20,000) C

Connecting our Region Rural road maintenance Charbon area - reduce expenditure, defer to 16/17 99,000 C

Connecting our Region Rural road maintenance Charbon area - contributions received 41,275 C

Connecting our Region Rural road maintenance Charbon area - transfer to unspent contributions (41,275) C

Connecting our Region Rural road maintenance Charbon area - reduce transfer from unspent contributions (99,000) C

CORPORATE: FINANCE


Connecting our Region Rural unsealed roads savings - Widen and seal Mt Vincent Road $40,000 Seal extension Black Springs Road $55,000

95,000 C

Connecting our Region Rural unsealed roads savings - reduce transfer from capital program reserve (40,000) C

Connecting our Region Rural unsealed roads savings - reduce R2R funding (55,000) C

Connecting our Region Rural unsealed roads - increase resheeting on Black Springs Road (4,800) C

Connecting our Region Rural unsealed roads - increase R2R funding 4,800 C

Connecting our Region Billy Dunn carpark - completed with savings 20,000 C

Connecting our Region Billy Dunn carpark - reduce transfer from capital program reserves (20,000) C

Protecting our Natural Environment Drainage - reduction in culvert installations 10,000 C

Protecting our Natural Environment Drainage - increase in culvert replacements (increased renewals) (10,000) C

Protecting our Natural Environment Spring Ridge Road culvert replacement - increase R2R grant funding allocation 87,000 C

Protecting our Natural Environment Spring Ridge Road culvert replacement - increase scope of works (87,000) C

Connecting our Region Heavy Patching urban roads - increase R2R funding 27,000 C

Connecting our Region Heavy Patching urban roads - allocate funds to heavy patch Henry Bailey/Richard St intersection (27,000) C

Connecting our Region Heavy Patching local rural roads - increase R2R funding 172,521 C

Connecting our Region Heavy Patching local rural roads - transfer from local road heavy patching general budget 77,479 C

Connecting our Region Heavy Patching local rural roads - Mud Hut Creek Road $50,000 Windeyer Rd $100,000 Henry Lawson Drive $100,000

(250,000) C

Good Government Fibre optic link to Mudgee Library and Water Treatment Plant - increase contractor costs for fibre optic installation. Move forward from 16/17 to take up mobilisation discount

113,600 C

Good Government Fibre optic link to Mudgee Library and Water Treatment Plant - transfer from capital program reserve for library link (43,300) C

Good Government Fibre optic link to Mudgee Library and Water Treatment Plant - contribution from Water Fund for water treatment plant link (70,300) C

Looking after our Community Gulgong disabled access ramp - defer portion of works to 16/17 150,000 C

Looking after our Community Gulgong disabled access ramp - reduce transfer from capital program works (150,000) C

Building a Strong Local Economy Saleyards Lane land development - increase transfer from land development reserve 125,000 C

Building a Strong Local Economy Saleyards Lane land development - increase materials and contractors expenditure on water/sewer mains extension (125,000) C

Total Contra Variations 0

CORPORATE: FINANCE


TOTAL GENERAL FUND 1,351,700 Non-cash variations 0 Unrestricted cash variations 1,351,700

1.2 Water Fund

Council finished the 2015 financial year with a Water Fund cash balance of $9.862 million, made up of:

RESTRICTED/UNRESTRICTED AMOUNT ($’000) S64 Developer Contributions 4,491 Water Reserves 2,272 Unspent Grants 1 Unrestricted 3,098 Total 9,862

Council has a large amount of capital works budgeted within the 2015/16 and 2016/17 Operational Plans, funded from restricted cash which will see these balances depleted, once complete.

The 2016 Original Budget for Water Fund, as adopted by Council, projected a positive movement to 30 June 2016 in unrestricted cash of $199k.

Subsequent to the Original Budget, Council has adopted budget variations as summarised below:

VARIATION AMOUNT ($’000) MOVEMENT Original Budget 199 Improvement Revotes 0 Nil Council Minutes – July to Mar (50) Deterioration September QBR (6) Deterioration December QBR (5) Deterioration March QBR proposed variations 346 Improvement Estimated movement to 30 June 484 Improvement Projected balance at 30 June 2016 3,582

Proposed variations to the 2015/16 Operational Plan for Water Fund are listed below.

COMMUNITY PLAN THEME VARIATION AMOUNT

WATER FUND

Positive Variations

Protecting our Natural Environment Property income - sale of land in Gulgong 120,000 F

Protecting our Natural Environment Water management & administration - savings on software licensing due to delays in InfoWater implementation 26,700 F

CORPORATE: FINANCE



Protecting our Natural Environment Water mains operations and maintenance - savings in materials & consumables $60k, plant hire $20k 80,000 F

Protecting our Natural Environment Water pump stations - savings on electricity $20k and consumables $20k 40,000 F

Protecting our Natural Environment Water filtration plant operations - savings in employee costs $10k, consumables $10k and electricity $5k due to staff vacancies 25,000 F

Protecting our Natural Environment Water river intakes operations - savings on employee costs $25k due to reduced overtime and $40k in electricity savings 65,000 F

Protecting our Natural Environment Water treatment plant operations Mudgee - savings on employee costs $30k, consumables $10k, electricity $50k 90,000 F

Total Positive Variations 446,700

Negative Variations

Protecting our Natural Environment Fibre optic link - contribution from water fund (70,300) U

Protecting our Natural Environment

Water meter maintenance - increased materials$10k, and employee costs $20k (30,000) U


Contra Variations

Protecting our Natural Environment Water new connections - reduction in number of connections 45,000 C

Protecting our Natural Environment Water new connections - reduced income for water connections (45,000) C

Protecting our Natural Environment Water Augmentation Ulan Road extension - defer works to 16/17, in line with development 1,600,000 C

Protecting our Natural Environment Water Augmentation Ulan Road extension - reduce transfer from water reserve (600,000) C

Protecting our Natural Environment Water Augmentation Ulan Road extension - reduce transfer from S64 (1,000,000) C

Protecting our Natural Environment Water Mains Rouse St - completed with savings 6,000 C

Protecting our Natural Environment Water Mains Rouse St - reduce transfer from water fund reserve (6,000) C

Protecting our Natural Environment Water Mains Saleyards Lane - costs to be bourne by developer, reallocated to Saleyards Lane property development (See General Fund)

65,000 C

Protecting our Natural Environment Water Mains Saleyards Lane - reduce transfer from water fund reserve (65,000) C

Protecting our Natural Environment Water Mains Albens Lane - allocate budget for mains replacement 15,000 C

Protecting our Natural Environment Water Mains Albens Lane - transfer from water reserve (15,000) C

Protecting our Natural Environment Water reservoir Flirtation Hill Mudgee - project complete with savings 7,000 C

Protecting our Natural Environment Water reservoir Flirtation Hill Mudgee - reduce transfer from water reserve (7,000) C

Protecting our Natural Environment Water quality works - increase transfer from water reserve 35,000 C

CORPORATE: FINANCE



Protecting our Natural Environment Water quality works - increase scope of works to address water quality issues at Gulgong reservoir and Mudgee high zone (35,000) C

Protecting our Natural Environment Water treatment plant renewals - completed 15/16 works with savings 35,000 C

Protecting our Natural Environment Water treatment plant renewals - reduce transfer from water reserve (35,000) C


TOTAL WATER FUND 346,400 Non-cash variations 0 Unrestricted cash variations 346,400

1.3 Sewer Fund

Council finished the 2015 financial year with a Sewer Fund cash balance of $8.442 million, made up of:

RESTRICTED/UNRESTRICTED AMOUNT ($’000) S64 Developer Contributions 2,037 Sewer Reserves 3,784 Unrestricted 2,621 Total 8,442

Council has a large amount of capital works budgeted within the 2015/16 and 2016/17 Operational Plans, funded from restricted cash which will reduce these balances, once complete.

The 2016 Original Budget for Sewer Fund as adopted by Council projected a negative movement to 30 June 2016 in unrestricted cash of $1.090 million.


VARIATION AMOUNT ($’000) MOVEMENT Original Budget (1,090) Deterioration Revotes 0 Nil September QBR (6) Deterioration December QBR 0 Nil March QBR proposed variations 34 Improvement Estimated movement to 30 June 2016 (1,062) Deterioration Projected balance at 30 June 2016 1,559

Proposed variations to the 2015/16 Operational Plan for Sewer Fund are listed below.

CORPORATE: FINANCE


COMMUNITY PLAN THEME VARIATION AMOUNT SEWER FUND

Positive Variations

Protecting our Natural Environment Sewer management and administration - savings on software $18k due to delayed implementation of InfoWater, and training costs $9k 27,000 F

Protecting our Natural Environment Sewer main operations - savings on consumables $30k and wet plant hire $10k 40,000 F

Protecting our Natural Environment Sewer management studies - savings in consultant costs, all studies complete for 2015/16 10,000 F

Protecting our Natural Environment Sewer treatment works Gulgong - savings in electricity costs 5,000 F Protecting our Natural Environment Sewer pump stations - savings in employee costs due to vacancies 30,000 F Total Positive Variations 112,000

Negative Variations

Protecting our Natural Environment Sewer treatment works, Mudgee - increased tipping costs for dewatering $115k, and chemical costs $95k, partially offset by savings in electricity $30k, EPA licenses $57k, and employee costs $45k

(78,000) U


Contra Variations

Protecting our Natural Environment Sewer new connections - reduction in number of connections 15,000 C

Protecting our Natural Environment Sewer new connections - reduced income for sewer connections (15,000) C Protecting our Natural Environment Sludge dewatering mobile unit - increase transfer from sewer reserve 6,500 C

Protecting our Natural Environment Sludge dewatering mobile unit - variation for control of poly dosing to suit Mudgee sewer treatment plant (6,500) C

Protecting our Natural Environment Sewer augmentation Rylstone Kandos - defer to 16/17 due to delays with unresolved land matters 515,000 C

Protecting our Natural Environment Sewer augmentation Rylstone Kandos - defer to 16/17 reduce transfer from sewer reserve (515,000) C

Protecting our Natural Environment Sewer Mains Saleyards Lane - costs to be borne by developer, reallocated to Saleyards Lane property development (See General Fund)

160,000 C

Protecting our Natural Environment Sewer Mains Saleyards Lane - reduce transfer from sewer fund reserve (160,000) C

Protecting our Natural Environment Sewer Mains Macquarie Drive - works completed with savings 3,500 C Protecting our Natural Environment Sewer Mains Macquarie Drive - reduce transfer from sewer reserve (3,500) C

Protecting our Natural Environment Sewer Pump Station - capital budget only - allocate partial budget $26k, return remainder to reserves 42,000 C

Protecting our Natural Environment Sewer Pump Station - capital budget only - allocate partial budget $26k, to Gulgong Hospital SPS (sewer reserve funded) (26,000) C

Protecting our Natural Environment Sewer Pump Station - capital budget only - reduce transfer from sewer reserve (16,000) C

Protecting our Natural Environment Decommission Mudgee Sewer Treatment Plant - completed with savings 85,000 C

Protecting our Natural Environment Decommission Mudgee Sewer Treatment Plant - reduce transfer from sewer reserves (85,000) C


TOTAL SEWER FUND 34,000 Non-cash variations 0 Unrestricted cash variations 34,000

CORPORATE: FINANCE


1.4 Waste Fund

Council finished the 2015 financial year with a Waste Fund cash balance of $4.130 million, made up of:

RESTRICTED/UNRESTRICTED AMOUNT ($’000) Waste Reserves 2,827 Unspent Grants 0 Unrestricted 1,303 Total 4,130

The 2016 Original Budget for Waste Fund as adopted by Council projected a negative movement to 30 June 2016 in unrestricted cash of $272k.


VARIATION AMOUNT ($’000) MOVEMENT Original Budget (272) Deterioration Revotes 0 Nil September QBR 0 Nil December QBR 87 Improvement March QBR proposed variations 143 Improvement Estimated movement to 30 June (42) Deterioration Projected balance at 30 June 1,261

Proposed variations to the 2015/16 Operational Plan for Waste Fund are listed below.

COMMUNITY PLAN THEME VARIATION AMOUNT WASTE FUND

Positive Variations


General waste operations savings - increase internal tipping fees ($140k), general sales ($6k) and reduce plant hire ($80k), partially offset by an increase to materials and contractors ($33.5k)

192,500 F


Negative Variations


Domestic waste operations - allocate budget for pensioner rebates ($49k), partially offset by reduction in plant hire costs ($25k) (24,000) U


Waste service streets - increase wages to cover annual leave vacancies ($29k), partially offset by savings on plant hire ($4k) (25,000) U


Contra Variations

Protecting our Natural Environment Plant renewals - scope of works completed with savings 90,000 C

CORPORATE: FINANCE


COMMUNITY PLAN THEME VARIATION AMOUNT Protecting our Natural Environment Plant renewals - reduce transfer from waste reserve (90,000) C Protecting our Natural Environment Waste site rehab Home Rule - increase transfer from waste reserve 20,000 C Protecting our Natural Environment Waste site rehab Home Rule - increase scope of works (20,000) C Protecting our Natural Environment Lue tip upgrades - scope of works completed with savings 3,600 C Protecting our Natural Environment Lue tip upgrades - reduce transfer from waste reserve (3,600) C Protecting our Natural Environment Waste sediment dam - increase transfer from waste reserve 60,000 C

Protecting our Natural Environment Waste sediment dam - move capital works for project forward to 2015/16 (60,000) C


TOTAL WASTE FUND 143,500

Non-cash variations 0

Unrestricted cash variations 143,500

1.5 Other Funds

Proposed variations to the 2015/16 Operational Plan for other funds are listed below.

COMMUNITY PLAN THEME VARIATION AMOUNT SALEYARDS FUND

Positive Variations

Building a Strong Local Economy Saleyards operations - savings in casual wages $8k, and materials $7k 15,000 F


TOTAL SALEYARDS FUND 15,000 Non-cash variations 0 Unrestricted cash variations 15,000

CORPORATE: FINANCE


2. Developer Contributions – Section 64, 94 and 93F

Council finished the 2015 financial year with a Developer Contributions balance of $11.589 million. Council's Original Budget estimated a decrease in Developer Contributed reserves of $2.087 million to $9.502 million. Council has since adopted the following variations:

VARIATION AMOUNT ($’000) MOVEMENT Original Budget (2,087) Decrease Revotes (203) Decrease Council minutes July-Mar (326) Decrease September QBR 1,858 Increase December QBR 0 Nil March QBR Proposed variations 1020 Increase Estimated movement to 30 June 2016 262 Increase Projected balance at 30 June 2016 11,851

Budget variations include a reduced transfer from S64 for deferral of the Water Augmentation works on the Ulan Road extension $1,000k, reduced transfer from S94 for the S94 Admin Plan $10k, and reduced transfers from VPA for Wollar Rd $76k, and Cope Road $55k (deferred to 16/17). A recommendation has also been included to transfer $121k from VPA Catchment A drainage to reserves to cover the previously completed Richard St detention basin.

The following chart shows the projected balances over a four year period.

CORPORATE: FINANCE


Detailed Section 64, 94 & 93F movements and current balances are as follows:

S94/64 Plan Item opening balance budget transfers to budget transfers from budget closing balance

Traffic Management 1,256 105 914 447

Open Space 1364 344 275 1,433

Community Facilities 506 51 11 546

Administration 281 51 35 297

Civic Improvements -4 0 0 -4

Car Parking 241 6 0 247

S94A Levies 451 28 0 479

Drainage – 2A 67 102 115 54

Total S94 Contributions 4,162 687 1,350 3,499

S64 Sewer 2,037 592 368 2,261

S64 Water 4,499 1,162 797 4,864

Voluntary Planning Agreements 891 603 267 1,227

Total Developer Contributions 11,589 3,044 2,782 11,851

CORPORATE: FINANCE


3. Loan Borrowings

Council's Original 2015/16 Operational Plan does not include any borrowings.

PROJECT FUND

ORIGINAL BUDGET

$’000

REVISED BUDGET

$’000

PROPOSED VARIATIONS

$’000

PROPOSED BUDGET

$’000

ACTUAL YTD

$’000 Nil NA 0 0 0 0 0 Total 0 0 0 0 0

CORPORATE: FINANCE


4. Reserves

4.1 Internally Restricted Reserves

Council finished the 2015 financial year with an Internally Restricted Reserve balance of $8.202 million. Council's Original 2015/16 budget estimated a decrease in Internally Restricted Reserves of $0.629 million to $7.573 million.

Council has since adopted the following variations:

VARIATION AMOUNT ($’000) MOVEMENT Original Budget (629) Decrease Revotes (260) Decrease Council minutes – July to Mar (600) Decrease September QBR 209 Increase December QBR 0 Nil March QBR Proposed Variations 610 Increase Estimated movement to 30 June 2016 (670) Decrease Projected balance at 30 June 2016 7,532

Recommended variations include:

• transfer to Land Development reserve from savings in Burrundulla land development $240k

• transfer from Land Development reserve to complete water/sewer mains at Saleyards Lane $125k

All other variations are listed in section 1 of this report.

4.2 Externally Restricted Reserves

Council finished the 2015 financial year with an Externally Restricted Reserve balance of $9.815 million. Council's Original 2015/16 budget estimated an increase in Externally Restricted Reserves of $1.002 million to $10.817 million.

Council has since adopted the following variations:

VARIATION AMOUNT ($’000) MOVEMENT Original Budget 1,002 Increase Revotes (237) Decrease Council minutes – July to Mar (427) Decrease September QBR 321 Increase December QBR (102) Decrease March QBR Proposed Variations 1,660 Increase Estimated movement to 30 June 2016 2,217 Increase Projected balance at 30 June 2016 12,032

CORPORATE: FINANCE


Recommended variations include:

• transfer to Ulan Road Strategy reserve for maintenance expenditure due in future years $390k

• reduce transfer from Water Fund reserve for the deferral of Ulan Rd water mains extension $600k

• reduce transfer from Sewer Fund reserve for deferral of Rylstone/Kandos Sewer Augmentation works $515k

All other variations are listed in section 1 of this report.


Detailed budgeted reserve movements are included in the following table.

Internally Restricted Reserves

opening balance budget transfers to

budget transfers from

budget closing balance

EMPLOYEE LEAVE ENTITLEMENTS 2,295,184 0 0 2,295,184

EMERGENCY 200,254 0 0 200,254

LAND DEVELOPMENT 633,429 297,800 479,956 451,273

AIRPORT DEVELOPMENT (234,956) 234,956 0 (0)

ELECTION 194,870 60,000 0 254,870

PLANT REPLACEMENT 2,045,102 3,070,077 3,472,000 1,643,179

ASSET REPLACEMENT 1,439,054 1,162,490 1,635,860 965,684

CAPITAL PROGRAM 870,291 700,000 912,058 658,233

LIVESTOCK EXCHANGE 39,555 15,000 10,000 44,555

MUDGEE CERAMIC ART COLLECTION 0 0 0 0

STATE ROADS WARRANTY 200,000 0 0 200,000

RYLSTONE CHILDRENS CREATIVE ARTS 6,060 0 0 6,060

KANDOS MUSEUM 0 0 0 0

COMMUNITY PLAN 312,723 0 0 312,723

FUTURE FUND 200,000 300,000 0 500,000

AIRLINE SUPPORT 0 0 0 0

TOTAL INTERNAL RESERVES 8,201,565 5,840,323 6,509,874 7,532,014

EXTERNALLY RESTRICTED RESERVES

WASTE 2,827,077 900,000 1,101,900 2,625,177

SEWER 3,783,764 3,700,000 1,767,689 5,716,075

WATER 2,271,943 1,500,000 1,380,711 2,391,232

CHILDCARE CENTRE (0) 0 0 (0)

COMMUNITY SERVICES 77,382 0 0 77,382

COMMUNITY TENANCY SCHEME - WALTER & DENISON ST UNITS

63,909 0 16,100 47,809

FAMILY DAY CARE 90,522 0 0 90,522

SECTION 355 COMMITTEES - CROWN RESERVES ONLY (0) 0 0 (0)

BEQUEST - SIMPKINS PARK 98,253 0 0 98,253

BEQUEST - KANDOS MUSEUM 32,751 0 0 32,751

COMMUNITY TRANSPORT VEHICLE REPLACEMENT 130,037 38,000 45,000 123,037

ULAN ROAD STRATEGY 439,804 390,000 0 829,804

TOTAL EXTERNAL RESERVES 9,815,441 6,528,000 4,311,400 12,032,041

TOTAL RESERVES 18,017,006 12,368,323 10,821,274 19,564,055

Corporate: Finance


CORPORATE: FINANCE

5. Budget Summary

5.1 Connecting Our Region

Key Performance Indicators


CORPORATE: FINANCE

Significant Operating Expenditure

$'000

CURRENT ANNUAL BUDGET

PROPOSED ANNUAL BUDGET ACTUAL YTD COMMITMENTS COMMENT


LOCAL UNSEALED ROADS GRADING PROGRAM 1,277 1,776 1,022 16 Programmed grading works are set to continue through to the end of the financial year. A recommendation for an additional $200k in local road grading has been requested.

Corporate: Finance


CORPORATE: FINANCE Significant Capital Projects

$'000




FAIRY DALE LANE UPGRADE 3,178 3,178 2,376 247

Saleyards Lane was opened to traffic in January 2016. The construction of Fairydale Lane is in progress. The stormwater drainage is complete and the road pavement is under construction and works are currently focused on the preparation for kerb and gutter. The base slab for the Bells Street culvert is complete and the precast units have been placed. The construction of the headwalls is in progress. An aboriginal site has been disturbed on this project and advise from OEH is awaited.

RURAL REHAB - LUE RD PART SEG 190, 180 524 400 102 57 The road rehabilitation on the 1st km is nearing completion and seal is planned for April. Works will them be focused on the remainder of the project.

BLACKSPOT LUE ROAD 1,147 1,147 626 22

Safety improvements to 4 locations of Lue Road make up this project. The works at 2 locations are complete and works are underway on the 3rd. It is likely that works at locations 3 and 4 will be undertaken concurrently. Works include shoulder widening, guardrail installation and delineation works.

REHAB COPE ROAD UPGRADE - MILESTONE 1 100 100 95 0 Works Complete REHAB COPE ROAD UPGRADE - CONFORMING RESEALS 110 110 111 0 Works Complete

REHAB COPE ROAD UPGRADE - MILESTONE 2 50 3 3 0 Works Complete REHAB COPE ROAD UPGRADE - MILESTONE 3 1,197 1,307 1,262 41 Works Complete

REHAB COPE ROAD UPGRADE - MILESTONE 4 1,045 815 207 36 Works are in progress. 900m of pavement rehabilitation and widening was completed in April. The remaining 1.2 Km will be completed before end of June


CORPORATE: FINANCE

$'000



REHAB COPE ROAD UPGRADE - MILESTONE 5 500 230 10 65 Milestone 5 is the heavy vehicle bypass route that runs in Gulgong. Kerb and gutter works are in progress on Rouse Street. Pavement construction works will commence early July 2016.

RESHEETING - BUDGET ONLY 1,443 1,262 1,077 0 Some targeted resheeting works are being undertaken where a good source of water can be secured. Additional resheeting projects are planned to be undertaken as part of the additional R2R funding.

SEAL EXTENSION - WOLLAR ROAD 1,916 1,916 126 541 The survey, design and geotechnical investigations are being undertaken. Tender documents for stage 1 works are being prepared.

GREEN GULLY BRIDGE 652 532 15 393

A solution has been developed to install a side track following negotiations with neighbouring landowners. This side track will be installed in April which will allow the commencement of the bridge replacement. The pre-case components for the bridge have been fabricated.

BUTTER FACTORY BRIDGE 630 535 31 348 The bridge replacement works are nearing completion.

STONEY CREEK BRIDGE 820 679 539 26 The bridge replacement works are complete. Works are progressing on the approaches and following completion the side track will be removed.

MACDONALDS CREEK BRIDGE REPLACEMENT 700 721 250 140 The bridge replacement works are complete and the bridge approach works will commence in April. Following the approach works the bridge will be opened and the side track removed.

ULAN ROAD - MIDBLOCK 19.999 TO 22.215 5 3 3 0 Completed ULAN ROAD - WOLLAR RD INTERSECTION 8 8 8 0 Completed in 2014/15 ULAN ROAD - MT PLEASANT LN TO BUCKAROO LN 650 603 603 0 Completed

ULAN ROAD - CHURCH LN TO OVERTAKING LN 14.5 1,600 850 497 74 In progress, 1st km completed. Environmental issues currently causing delays to project.

ULAN ROAD - COPE RD TO UCML MINE ENTRANCE 15 12 12 0 Completed

Corporate: Finance


CORPORATE: FINANCE

$'000



ULAN ROAD - WATTLEGROVE LN TO MIDBLOCK 19.999 10 3 7 0 Completed

ULAN ROAD - WYALDRA LN TO QUARRY ENTRANCE 27.783 35 31 31 0 Completed

ULAN ROAD - WINCHESTER CRES TO MIDBLOCK 31.106 2,500 2,100 1,560 117 In progress, final km underway. Completion planned

by June 2016.


CORPORATE: FINANCE

5.2 Good Government


Corporate: Finance



$'000



Good Government

TELEPHONE SYSTEM - VOIP 118 108 1 0 In progress, network reconfiguration underway with

part services being installed currently.

IT CORPORATE SOFTWARE 31 76 8 3 Virtual server licences completed, backup software in progress

PLANT PURCHASES 3,692 4,287 1,874 1,541

Quotations and orders have been placed for nearly all required plant, with deliveries due to complete by 30 June.


CORPORATE: FINANCE

5.3 Looking after Our Community


Corporate: Finance



$'000


PROPOSED ANNUAL BUDGET

ACTUAL YTD COMMITMENTS

COMMENT

LOOKING AFTER OUR COMMUNITY

RURAL FIRE SERVICE - CUDGEGONG HERITAGE BUILDING 587 587 1 0 This project is currently on hold pending further funding

input from the NSW RFS

PUBLIC TOILETS - PERCY NOTT PARK 244 235 235 0 All works completed.

KANDOS POOL TILING 50 50 0 0 Works to commence in pool off season

GULGONG SWIMMING POOL DISABLED ACCESS RAMP 0 50 0 0 Works to commence in pool off season

RED HILL RESERVE - TOURISM DEVELOPMENT INVESTIGATION 657 677 652 3 Construction project complete. Fitout of exhibits has

commenced. Official opening to be held on June 12th.


CORPORATE: FINANCE

5.4 Protecting our Natural Environment


Corporate: Finance



$'000




NEW RECYCLING PLANT 500 590 262 30 New portable office for recycling delivered and on-site, new cardboard press shipped and installed, existing recycling plant to be repaired and modified in 4th quarter.

HORATIO ST DETENTION BASIN 321 321 6 320 Design and procurement complete, work commencing April

WATER AUGMENTATION - WEST MUDGEE EXTENSION 1,266 1,266 484 738

Water main construction approximately 70% complete as of end March 2016. Scheduled to be completed by end April 2016.

WATER AUGMENTATION - ULAN RD EXTENSION 1,600 0 0 0

Proposed budget adjustment in March QBR to allow for additional water modelling and calibration to be undertaken during summer period 2016, followed by detailed design and construction of resulting water main augmentation. Current development progress in North area of Mudgee does not yet require augmentation of existing water mains.

WATER MAINS - BRUCE ROAD 214 214 215 0 Project complete

SEWER AUGMENTATION - RYLSTONE & KANDOS 515 0 0 0 Land matters currently being negotiated with stakeholders. Proposed budget adjustment in March QBR to allow land matters to continue in 2016/17.

SEWER MAINS RELINING 330 330 332 0 2015/16 sewer main relining programme completed in August 2015.

SEWER MAINS - RISING MAIN CAERLEON 625 625 8 580 Rising main construction approximately 80% complete as of end March 2016. Scheduled to be completed by end April 2016.

SEWER PUMP STATION - CAERLEON 644 644 3 587

Contract awarded following Council resolution 17 February 2016. Fabrication underway offsite. Onsite insatllation scheduled to commence April 2016 and be completed in June 2016 if power supply becomes available from Caerleon development during early May.


CORPORATE: FINANCE

5.5 Building a Strong Local Economy


Corporate: Finance



$'000



Building a Strong Local Economy

CUDGEGONG WATERS AMENITIES 140 140 1 0 DA has been submitted. Works estimated to be completed by end of June 2016.

COMMERCIAL PROP - PRESCHOOL FACILITY 188 188 67 5 Final works being completed on gate for driveway. Official opening held on April 1st.


CORPORATE: FINANCE

6. Capital Works Program

Capital Program Status Summary

Consultation, 2% Project Scope, 5%

Design, 1%

Procurement, 4%

Initial works, 8%

Construction, 13%

Final works, 12%

Complete, awaiting invoices, 11%

Complete, 33%

Deferred/Cancelled, 6%

Budget only, 4%

Capital Program (number of projects)

Consultation

Project Scope

Design

Procurement

Initial works

Construction

Final works

Complete, awaiting invoices

Complete

Deferred/Cancelled

Budget only

Corporate: Finance


CORPORATE: FINANCE KEY

Status Description

Consultation Engaging with stakeholders for ideas and to determine viability and direction for the project.

Project Scope Initial concept, business case and project plan development. Design Initial and detailed design. Procurement Tendering, sourcing quotes or suppliers. Initial works Early stages of project delivery. Construction Major project activities are in progress.

Final works Project is in final stages of completion or awaiting minor items. Complete, awaiting invoices

Project work is complete. Waiting on invoices from suppliers for financial completion.

Complete Project work is complete and all costs have been allocated.

Deferred/Cancelled Project is no longer in current year’s program.

Budget Only Project is for budget purposes only. Now fully allocated out to projects.


CORPORATE: FINANCE

Detailed Capital Works

$'000

ORIGINAL ANNUAL BUDGET


PROPOSED VARIATIONS


ACTUAL YTD

ACTUAL YTD/

PROPOSED ANNUAL BUDGET COMMITMENTS

PROJECT STATUS

Looking after our Community

RURAL FIRE SERVICE - CUDGEGONG HERITAGE BUILDING 544 587 0 587 1 0% 0 Consultation

KANDOS POUND SHADE SAIL 3 3 0 3 0 13% 0 Complete, awaiting invoices

CCTV CAMERA INSTALLATION 25 25 (25) 0 0 0% 0 Consultation

COMM. TRANSPORT- VEHICLE PURCHASE 72 72 0 72 44 61% 0 Complete, awaiting invoices

AGED CARE UNITS - CAP -COOYAL/ANDERSON ST GULGONG 18 18 0 18 18 98% 0 Complete

AGED CARE UNITS - CAP -LOUEE ST UNITS 7 7 (4) 3 2 64% 0 Complete, awaiting invoices

LG HOUSING - CAP - WALTER STREET UNITS 12 12 0 12 1 10% 0 Final works GPS CEMETERY SITES 24 42 (40) 2 0 0% 21 Construction GULGONG LAWN CEMETERY EXTENSION 38 38 0 38 27 71% 2 Final works

PUBLIC TOILETS - CAPITAL UPGRADES 11 11 0 11 4 41% 0 Complete, awaiting invoices

PUBLIC TOILETS - PERCY NOTT PARK 0 244 (9) 235 235 100% 0 Complete

PUBLIC TOILETS - APEX PARK GULGONG 7 7 0 7 4 65% 0 Complete, awaiting invoices

PUBLIC TOILETS - BILLY DUNN PARK GULGONG 38 38 0 38 22 57% 1 Complete, awaiting invoices

LIBRARY BOOKS 70 70 0 70 57 81% 0 Construction KANDOS MUSEUM - CAPITAL 0 5 0 5 4 93% 0 Complete STABLES COMPLEX - CAPITAL 13 13 0 13 7 54% 0 Final works CAPITAL UPGRADE - RYLSTONE HALL 50 50 0 50 1 1% 0 Initial works CAP UPGRD-CLANDULLA FACILITIES 5 5 0 5 0 2% 0 Deferred/Cancelled CAP UPGRD-COMMUNITY BLD-BUDGET ONLY 31 31 (25) 6 2 30% 0 Budget only

Corporate: Finance


CORPORATE: FINANCE

$'000



PROPOSED VARIATIONS


ACTUAL YTD

ACTUAL YTD/


PROJECT STATUS

GULGONG POOL - DISABLED ACCESS 0 250 (150) 100 0 0% 0 Procurement KANDOS POOL TILING 250 50 0 50 0 0% 0 Procurement POOL CLEANER REPLACEMENT 14 14 0 14 14 106% 0 Complete MUDGEE POOL LANE ROPES 12 12 0 12 13 104% 0 Complete GULGONG POOL BLANKET ROLLERS 0 18 0 18 19 104% 0 Complete MUDGEE SHOWGROUNDS - REDEVELOPMENT 34 70 0 70 43 61% 0 Project Scope GLENWILLOW SPORTS GROUND UPGRADES 42 42 0 42 36 87% 0 Final works GLEN WILLOW CRICKET WICKET 0 30 (30) 0 0 0% 0 Consultation

GLEN WILLOW CARPARK 30 30 0 30 18 61% 2 Complete, awaiting invoices

BILLY DUNN CARPARK 43 43 (20) 23 0 0% 12 Complete, awaiting invoices

RYLSTONE SKATE PARK 125 135 0 135 4 3% 115 Initial works VICTORIA PARK - GRANDSTAND REPAIRS 7 7 0 7 7 101% 0 Complete VICTORIA PARK UPGRADES 40 10 0 10 13 129% 0 Complete CAHILL PARK CAPITAL UPGRADES 0 0 20 20 0 0% 0 PASSIVE PARKS - LANDSCAPING IMPROVEMENTS 5 5 0 5 3 57% 0 Complete RED HILL RESERVE - TOURISM DEVELOPMENT INVESTIGATION 230 657 20 677 652 96% 3 Complete, awaiting

invoices ROBERTSON PARK ROTUNDA 90 90 0 90 3 3% 0 Procurement PLAYGROUND EQUIPMENT UPGRADE 73 0 0 0 0 0% 0 Deferred/Cancelled SCULPTURES ACROSS THE REGION 30 30 0 30 19 64% 0 Final works LAWSON PARK - LIGHTING 50 50 0 50 46 92% 0 Complete NEW PARK - MELTON ROAD 0 20 0 20 14 70% 2 Final works PLAYGROUND SHADING PROGRAM 15 15 0 15 15 98% 0 Complete PATH BINS AND BAG DISPENSERS 10 10 0 10 11 109% 0 Complete PLAYGROUND RUBBER SOFTFALL PROGRAM 60 60 0 60 10 16% 1 Initial works PLAYGROUND EQUIPMENT - GILBEY PARK 37 37 0 37 34 94% 2 Complete


CORPORATE: FINANCE

$'000



PROPOSED VARIATIONS


ACTUAL YTD

ACTUAL YTD/


PROJECT STATUS

PLAYGROUND EQUIPMENT - GEORGE CAMPBELL PARK 37 37 0 37 40 108% 1 Complete

PLAYGROUND - BELLEVUE SALINITY RESERVE 200 200 0 200 189 94% 7 Final works ART GALLERY FACILITY 45 45 (30) 15 0 0% 0 Consultation STREETSCAPE - BIN REPLACEMENT PROGRAM 12 12 0 12 10 81% 0 Final works STREETSCAPE - TREE PLANTING RYLSTONE/KANDOS 5 5 0 5 4 87% 0 Complete

Total 2,463 3,259 (293) 2,966 1,646 56% 168


RURAL WASTE DEPOT UPGRADES 8 16 0 16 16 100% 0 Complete, awaiting invoices

MUDGEE WASTE DEPOT UPGRADES 32 32 0 32 12 39% 2 Design NEW TIP CONSTRUCTION 0 30 0 30 2 7% 22 Project Scope NEW RECYCLING PLANT 500 500 90 590 262 44% 30 Final works WTS - HOME RULE UPGRADE 30 30 0 30 8 26% 0 Initial works WTS - LUE UPGRADE 20 20 (4) 16 16 99% 0 Final works

WASTE SITE REHAB - PUTTA BUCCA 0 22 0 22 16 73% 6 Complete, awaiting invoices

WASTE SITE REHAB - MUDGEE 50 0 0 0 0 0% 0 Deferred/Cancelled COMMUNITY RECYCLING CENTRE 69 69 0 69 14 21% 3 Initial works WASTE SITE REHAB - HOME RULE 50 50 20 70 18 25% 0 Design SEDIMENT DAM 0 20 60 80 11 13% 5 Procurement CAUSEWAY IMPROVEMENTS 60 0 0 0 1 0% 0 Budget only RIFLE RANGE ROAD CULVERT UPGRADE 115 115 0 115 6 5% 3 Initial works DENISON ST DRAINAGE UPGRADE 150 0 4 4 3 99% 0 Deferred/Cancelled

Corporate: Finance


CORPORATE: FINANCE

$'000



PROPOSED VARIATIONS


ACTUAL YTD

ACTUAL YTD/


PROJECT STATUS

HORATIO ST DETENTION BASIN 321 321 0 321 6 2% 320 Construction SPRING RIDGE RD CULVERT REPLACEMENT 0 85 87 172 63 37% 12 Final works WINTER STREET DETENTION BASIN 0 150 (4) 147 0 0% 0 Project Scope WATER NEW CONNECTIONS 135 135 (45) 90 54 60% 0 Construction WATER AUGMENTATION - MUDGEE HEADWORKS 2,535 0 0 0 3 0% 0 Deferred/Cancelled WATER AUGMENTATION - WEST MUDGEE EXTENSION 470 1,266 0 1,266 484 38% 738 Construction WATER AUGMENTATION - ULAN RD EXTENSION 1,600 1,600 (1,600) 0 0 0% 0 Deferred/Cancelled WATER TELEMETRY - BUDGET ONLY 20 20 0 20 4 19% 0 Initial works WATER MAINS - CAPITAL BUDGET ONLY 329 0 0 0 0 0% 0 Budget only WATER MAINS - ROUSE ST (WYNELLA TO STATION) 0 88 (6) 82 78 95% 4 Complete WATER MAINS - HERBERT ST (STATION TO ROUSE) 0 44 0 44 44 99% 0 Complete WATER MAINS - CHURCH ST SOUTH - MADERIA TO SPRING 0 65 0 65 66 101% 0 Complete

WATER MAINS - MEDLEY ST (HEBERT TO FISHER) 0 29 0 29 29 98% 0 Complete WATER MAINS - BRUCE ROAD 0 214 0 214 215 101% 0 Complete WATER MAINS - GULGONG WTP PROCESS MAIN 21 10 0 10 11 111% 0 Complete WATER MAINS - SALEYARDS LANE MAIN EXTENSION 80 65 (65) 0 0 0% 0 Complete WATER MAINS - ALBENS LANE 0 0 15 15 0 2% 0 WATER MAINS - WENONAH ST 0 60 0 60 47 78% 0 Final works WATER PUMP STATION - CAPITAL BUDGET ONLY 66 0 0 0 0 0% 0 Budget only WATER PUMP STATION - MUDGEE RIVER INTAKE 0 16 0 16 0 1% 0 Complete WATER PUMP STATION - RYLSTONE RESERVOIR 0 50 0 50 5 9% 5 Final works WATER RESERVOIR - FLIRTATION HILL MUDGEE 99 24 (7) 17 17 100% 0 Complete RAW WATER SYSTEMS RENEWALS 15 15 0 15 0 0% 7 Construction WATER RESERVOIR - WATER QUALITY WORKS 0 75 35 110 0 0% 0 Procurement WATER TREATMENT PLANT - RENEWALS 85 85 (35) 50 7 14% 0 Construction WATER METERS - BULK 115 115 0 115 40 35% 0 Construction


CORPORATE: FINANCE

$'000



PROPOSED VARIATIONS


ACTUAL YTD

ACTUAL YTD/


PROJECT STATUS

SEWER NEW CONNECTIONS 47 47 (15) 32 8 26% 0 Construction

SLUDGE DEWATERING MOBILE UNIT 0 42 7 49 44 90% 0 Complete, awaiting invoices

SEWER AUGMENTATION - RYLSTONE & KANDOS 515 515 (515) 0 0 0% 0 Consultation SEWER AUGMENTATION - MUDGEE 0 24 0 24 (1) -3% 16 Construction SEWER TELEMETRY 20 20 0 20 0 0% 3 Initial works SEWER MAINS - CAPITAL BUDGET ONLY 6 0 0 0 0 0% 0 Budget only SEWER MAINS RELINING 330 330 0 330 332 101% 0 Complete

SEWER MAINS - BELLEVUE TO RIFLE RANGE ROAD 47 47 0 47 0 0% 0 Complete, awaiting invoices

SEWER MAINS - RISING MAIN CAERLEON 808 625 0 625 8 1% 580 Construction SEWER MAINS - BOMBIRA RISING MAIN 35 35 0 35 0 0% 0 Initial works SEWER MAINS - SALEYARDS LANE EXTENSION 160 160 (160) 0 0 0% 0 Complete SEWER MAINS - MACQUARIE DRIVE 0 12 (4) 8 8 97% 0 Complete SEWER PUMP STATION - CAPITAL BUDGET ONLY 69 42 (42) 0 0 0% 0 Budget only SEWER PUMP STATION - FLOW METERING 93 70 0 70 0 0% 0 Initial works SEWER PUMP STATION - CAERLEON 304 644 0 644 3 0% 587 Construction GSTP EFFLUENT PS PUMP REFURBISH 0 26 26 52 26 50% 0 Complete SEWER PUMP STATION - GULGONG HOSPITAL 0 13 0 13 12 93% 0 Complete DECOMMISSION MUDGEE STP PUTTA BUCCA 183 230 (85) 145 118 81% 0 Final works SEWER TREATMENT WORKS - RENEWALS 45 45 0 45 15 32% 10 Construction

Total 9,637 8,362 (2,243) 6,119 2,128 35% 2,354

Building a Strong Local Economy

CUDGEGONG WATERS AMENITIES 140 140 0 140 1 1% 0 Procurement

Corporate: Finance


CORPORATE: FINANCE

$'000



PROPOSED VARIATIONS


ACTUAL YTD

ACTUAL YTD/


PROJECT STATUS

RYLSTONE CARAVAN PARK - CAPITAL 15 15 0 15 10 69% 0 Complete, awaiting invoices

SALEYARDS - POST AND RAIL REPLACEMENT 10 10 0 10 8 76% 0 Construction PROPERTY - KANDOS SURPLUS LAND BLOCKS 5 5 0 5 0 6% 0 Complete

PROPERTY - EX SALEYARDS STAGE I 0 120 125 245 244 100% 0 Complete, awaiting invoices

PROPERTY - BURRUNDULLA LAND DEVELOPMENT 0 1,800 (240) 1,560 179 11% 0 Procurement

COMMERCIAL PROP - PRESCHOOL FACILITY 162 188 0 188 67 36% 5 Complete, awaiting invoices

KANDOS POOL COTTAGE CAPITAL 11 11 0 11 9 85% 0 Complete

Total 343 2,289 (115) 2,174 518 24% 5


CAUSEWAY IMPROVEMENT - BARNEY'S REEF ROAD 0 40 0 40 0 0% 0 Project Scope CAUSEWAY IMPROVEMENT - CAMBELLS CREEK ROAD 0 20 25 45 0 0% 0 Project Scope

URBAN RESEALS - HENBURY AVE KANDOS SEG 20 9 9 0 9 0 6% 0 Final works

URBAN RESEALS - CHURCH ST MUDGEE SEG 70,80,90 55 32 20 52 49 95% 0 Complete, awaiting invoices

URBAN RESEALS - FITZGERALD ST RYLSTONE SEG 10 12 12 (12) 0 0 0% 0 Deferred/Cancelled

URBAN RESEALS - HERBERT STREET 9 9 (4) 6 0 4% 6 Final works URBAN RESEALS - DANGAR ST KANDOS SEG 10 16 16 (16) 0 0 0% 9 Deferred/Cancelled URBAN RESEALS - PERRY ST MUDGEE SEG 60 32 32 9 41 41 100% 0 Complete URBAN RESEALS - COURT ST MUDGEE SEG 50 17 17 (8) 8 8 99% 0 Complete URBAN RESEALS - LAHY CT MUDGEE SEG 10 14 14 (6) 8 8 100% 0 Complete

URBAN RESEALS - TIP ROAD GULGONG SEG 10 11 11 (3) 8 0 2% 8 Complete, awaiting invoices


CORPORATE: FINANCE

$'000



PROPOSED VARIATIONS


ACTUAL YTD

ACTUAL YTD/


PROJECT STATUS

URBAN RESEALS - GEORGE ST MUDGEE SEG 40 18 18 (12) 6 6 99% 0 Complete URBAN RESEALS - DENISON ST MUDGEE SEG 200 6 6 2 7 7 101% 0 Complete URBAN RESEALS - JULIA CT MUDGEE SEG 10 11 11 (3) 8 8 98% 0 Complete URBAN RESEALS - REDBANK ROAD SEG 10, 20, 40 26 26 (8) 18 18 100% 0 Complete URBAN RESEALS - MEDLEY ST GULGONG SEG 10 8 0 0 0 0 0% 5 Deferred/Cancelled URBAN RESEALS - LYNNE ST GULGONG SEG 30,40,50 18 0 0 0 0 0% 0 Deferred/Cancelled URBAN RESEALS - BRAEBURN PL MUDGEE SEG 10 4 4 0 4 0 0% 2 Complete URBAN RESEALS - MARKET ST SEG 10 15 15 6 21 21 100% 0 Complete URBAN RESEALS - GRATHLYN ST MUDGEE SEG 10 4 4 0 4 3 81% 0 Complete URBAN RESEALS - HAVILAH TERRACE MUDGEE SEG 10, 20 10 10 0 10 17 176% 0 Complete

URBAN RESEALS - WANDOONA CT MUDGEE SEG 10 8 8 (1) 7 6 98% 0 Complete

URBAN RESEALS - DAVIDSON ST GULGONG SEG 20 3 3 (2) 1 0 4% 1 Complete, awaiting invoices

URBAN RESEALS - BASKERVILLE DR MUDGEE SEG 10 12 10 (5) 5 5 100% 0 Complete URBAN RESEALS - DEWHURST DR MUDGEE SEG 10, 20 41 41 (25) 16 16 100% 0 Complete

URBAN RESEALS - WENONAH STREET 0 18 (12) 6 0 0% 0 Complete, awaiting invoices

RESEAL - HENRY BAYLEY DRIVE SEG 40 5 5 (3) 2 2 96% 0 Complete RESEAL - LEWIS STREET SEG 90 17 17 (3) 14 14 100% 0 Complete URBAN RESEALS - DENISON STREET 65 65 (7) 58 58 100% 0 Complete URBAN ROADS KERB & GUTTER CAPITAL 23 23 0 23 23 98% 0 Complete FAIRY DALE LANE UPGRADE 2,877 3,178 0 3,178 2,376 75% 247 Construction

REHAB - KELLET DR MUDGEE 80 120 (20) 100 32 32% 41 Complete, awaiting invoices

REHAB - CHURCH ST SEG 100 115 75 (18) 57 80 142% 16 Complete, awaiting invoices

REHAB - DANGAR ST KANDOS 62 62 (62) 0 1 0% 0 Deferred/Cancelled

Corporate: Finance


CORPORATE: FINANCE

$'000



PROPOSED VARIATIONS


ACTUAL YTD

ACTUAL YTD/


PROJECT STATUS

REHAB - JACQUES/DANGAR ST KANDOS 2 23 0 23 4 16% 0 Construction REHAB - JACQUES/RODGERS ST KANDOS 2 19 (9) 10 9 88% 1 Complete REHAB - FIRST ST MUDGEE SEG 10 0 22 (14) 8 8 97% 0 Complete REHAB - FITZGERALD ST RYLSTONE SEG 10 0 26 0 26 20 77% 0 Final works

REHAB - CUDGEGONG RD EVANS CROSSING 0 120 (10) 110 105 96% 0 Complete, awaiting invoices

HEAVY PATCHING - HENRY BAILEY/RICHARDS INT 0 0 27 27 0 0% 0 Project Scope RESHEETING - URBAN ROADS 14 14 2 16 16 99% 0 Complete LEWIS & MORTIMER STREET INTERSECTION 186 186 27 213 159 75% 15 Final works

SEALING MAINTAINED LANES IN GULGONG CBD 45 53 (16) 38 4 11% 23 Complete, awaiting invoices

INGLIS STREET KERB AND GUTTER 0 20 0 20 0 0% 0 Project Scope

RESEAL - BRUCE ROAD 0 7 0 7 5 66% 0 Complete, awaiting invoices

FAIRYDALE LANE LAND MATTERS CAPITAL 0 114 0 114 67 59% 0 Initial works URBAN ROADS LAND MATTERS CAPITAL 21 28 0 28 1 3% 0 Initial works RURAL RESEAL - MAGPIE LN SEG 30, 40, 10, 20 132 87 1 88 88 100% 0 Complete RURAL RESEAL - SPRING FLAT RD SEG 10 50 23 0 23 23 100% 0 Complete RURAL RESEAL - NARRANGO RD SEG 30 30 0 0 0 0 0% 0 Deferred/Cancelled

RURAL RESEAL - TIP ROAD MUDGEE SEG 10 13 25 0 25 1 6% 14 Complete, awaiting invoices

RURAL RESEAL - YARRABIN RD SEG 140 40 30 (1) 29 29 100% 0 Complete RURAL RESEAL - YARRABIN RD SEG 20, 30, 40 102 58 (42) 16 16 100% 59 Complete RURAL RESEAL - WINDEYER RD SEG 140, 150 82 45 3 48 48 100% 0 Complete RURAL RESEAL - BLACK SPRINGS RD SEG 30, 40, 50 86 63 5 68 68 100% 0 Complete RURAL RESEAL - BOCOBLE RD SEG 10, 20 118 104 24 129 129 100% 0 Complete RURAL RESEAL - LUE ROAD SEG 350 59 29 0 29 29 100% 0 Complete HEAVY PATCHING BUDGET 104 104 (77) 26 8 29% 0 Project Scope RURAL REHAB - LUE ROAD SEG 80 -90 62 56 4 60 60 100% 0 Complete


CORPORATE: FINANCE

$'000



PROPOSED VARIATIONS


ACTUAL YTD

ACTUAL YTD/


PROJECT STATUS

RURAL REHAB - NARRANGO RD SEG 20 300 270 (7) 263 263 100% 7 Complete RURAL REHAB - LUE RD PART SEG 190, 180 524 524 (124) 400 102 25% 57 Construction BLACKSPOT LUE ROAD 0 1,147 0 1,147 626 55% 22 Construction HEAVY PATCHING - HENRY LAWSON DRIVE 0 0 100 100 0 0% 0 Project Scope HEAVY PATCHING - WINDEYER RD 0 0 100 100 0 0% 0 Project Scope HEAVY PATCHING - MUD HUT CREEK RD 0 0 50 50 0 0% 0 Project Scope FUTURE YRS REFS - BUDGET ONLY 5 5 0 5 0 3% 0 Project Scope RURAL SEALED ROAD LAND MATTERS 15 20 0 20 2 9% 0 Initial works RURAL SEALED REGIONAL ROAD REPAIR PROGRAM 800 0 0 0 0 0% 0 Budget only REHAB COPE ROAD UPGRADE BUDGET ONLY 2,844 0 0 0 0 0% 0 Budget only BLACKSPOT LUE ROAD SHOULDER WIDENING 1,147 0 0 0 0 0% 0 Budget only REHAB COPE ROAD UPGRADE - MILESTONE 1 0 100 0 100 95 95% 0 Complete REHAB COPE ROAD UPGRADE - CONFORMING RESEALS 0 110 0 110 111 101% 0 Complete

REHAB COPE ROAD UPGRADE - MILESTONE 2 0 50 (47) 3 3 99% 0 Complete REHAB COPE ROAD UPGRADE - MILESTONE 3 0 1,197 110 1,307 1,262 97% 41 Complete REHAB COPE ROAD UPGRADE - MILESTONE 4 0 1,045 (230) 815 207 25% 36 Construction REHAB COPE ROAD UPGRADE - MILESTONE 5 0 500 (270) 230 10 4% 65 Initial works BYLONG VALLEY WAY HEAVY PATCHING PROGRAM 0 150 (20) 130 0 0% 0 Project Scope REG RESEAL - HILL END RD/CASTLEREAGH HWY INTERSECTION 100 100 0 100 89 89% 0 Complete, awaiting

invoices REG RESEAL - BYLONG VALLEY WAY SEG 2225 TO 2260 351 201 20 221 221 100% 0 Complete

RURAL SEALED REGIONAL ROAD LAND MATTERS CAPITAL 17 17 0 17 0 1% 0 Initial works

WIDEN AND SEAL MT VINCENT ROAD HILL 100 100 (40) 60 57 95% 0 Complete SEAL EXTENSION - PYRAMUL ROAD 0 547 0 547 84 15% 20 Construction SEAL EXTENSION - BLACK SPRINGS ROAD 0 285 (55) 230 95 41% 52 Final works

Corporate: Finance


CORPORATE: FINANCE

$'000



PROPOSED VARIATIONS


ACTUAL YTD

ACTUAL YTD/


PROJECT STATUS

SEAL EXTENSION - MT PLEASANT LANE 0 10 0 10 10 97% 0 Complete RESHEETING - BUDGET ONLY 1,443 1,443 0 1,443 1,077 75% 0 Construction RESHEETING - R2R TWELVE MILE ROAD 0 22 0 22 2 9% 0 Construction RESHEETING - R2R DOUGHERTYS JUNCTION ROAD 0 34 0 34 0 0% 0 Construction RESHEETING - R2R CAMPBELLS CREEK ROAD 0 53 0 53 0 1% 0 Construction RESHEETING - R2R BERNARDS ROAD 0 12 0 12 9 74% 0 Construction RESHEETING - R2R KING JOHNS LANE 0 12 0 12 8 63% 0 Construction RESHEETING - R2R BLACK SPRINGS ROAD 0 14 5 19 20 104% 0 Construction RESHEETING - R2R YARRABIN ROAD 0 34 0 34 0 1% 0 Construction MURRAGAMBA RD - REALIGNMENT 0 337 (253) 84 83 99% 0 Complete UNSEALED ROADS LAND MATTERS CAPITAL 5 5 0 5 0 0% 0 Initial works RURAL UNSEALED REGIONAL ROAD RESHEETING 0 0 50 50 31 61% 0 Final works SEAL EXTENSION - WOLLAR ROAD 10,270 1,916 0 1,916 126 7% 541 Design GREEN GULLY BRIDGE 652 652 (120) 532 15 3% 393 Initial works BUTTER FACTORY BRIDGE 630 630 (95) 535 31 6% 348 Final works CORICUDGY ROAD BRIDGE - REPAIR 53 53 (19) 34 30 89% 0 Complete STONEY CREEK BRIDGE 820 820 (142) 679 539 79% 26 Final works MACDONALDS CREEK BRIDGE REPLACEMENT 0 700 21 721 250 35% 140 Final works ULAN ROAD STRATEGY - CAPITAL BUDGET ONLY 4,558 0 0 0 12 0% 0 Budget only ULAN ROAD - MIDBLOCK 19.999 TO 22.215 0 5 (2) 3 3 96% 0 Complete ULAN ROAD - WOLLAR RD INTERSECTION 0 8 0 8 8 98% 0 Complete ULAN ROAD - MT PLEASANT LN TO BUCKAROO LN 0 650 (47) 603 603 100% 0 Complete ULAN ROAD - CHURCH LN TO OVERTAKING LN 14.5 0 1,600 (750) 850 497 59% 74 Construction ULAN ROAD - COPE RD TO UCML MINE ENTRANCE 0 15 (3) 12 12 103% 0 Complete ULAN ROAD - WATTLEGROVE LN TO MIDBLOCK 19.999 0 10 (7) 3 7 210% 0 Complete ULAN ROAD - WYALDRA LN TO QUARRY ENTRANCE 27.783 0 35 (4) 31 31 100% 0 Complete


CORPORATE: FINANCE

$'000



PROPOSED VARIATIONS


ACTUAL YTD

ACTUAL YTD/


PROJECT STATUS

ULAN ROAD - WINCHESTER CRES TO MIDBLOCK 31.106 0 2,500 (400) 2,100 1,560 74% 117 Construction

ULAN ROAD - LAGOONS RD TO TOOLE RD 0 0 0 0 2 0% 0 Complete FOOTWAYS - CAPITAL BUDGET ONLY 120 120 0 120 32 27% 89 Construction PEDESTRIAN - GLEN WILLOW WALKWAY 50 52 0 52 48 93% 0 Complete GULGONG WALKWAY 80 80 0 80 0 0% 71 Construction PEDESTRIAN - RYLSTONE PEDESTRIAN BRIDGE 0 142 0 142 0 0% 0 Deferred/Cancelled ROBERTSON PARK PATHWAY 10 10 0 10 10 101% 0 Complete ROBERTSON ROAD - GOLF COURSE FENCE 0 33 0 33 26 81% 0 Procurement AIRPORT - APPROACH LIGHTS 0 33 0 33 0 0% 33 Final works AIRPORT - TERMINAL EXTENSION 220 375 0 375 373 99% 0 Final works AIRPORT - CAPITAL UPGRADES 0 33 0 33 24 72% 0 Final works AIRPORT - REALIGN AIRPORT ENTRY 0 17 0 17 13 81% 0 Final works

Total 29,861 24,017 (2,423) 21,594 12,416 74% 2,578

Good Government

CORPORATE BUILDINGS UPGRADE BUDGET ONLY 12 0 0 0 0 0% 0 Budget only MUDGEE ADMINISTRATION BUILDING UPGRADE 0 37 10 47 27 56% 0 Final works OLD POLICE STATION UPGRADE 10 10 0 10 10 99% 0 Complete MUDGEE STORES BUILDING 0 0 20 20 0 0% 0 Construction TELEPHONE SYSTEM - VOIP 118 118 (10) 108 1 1% 0 Initial works

IT NETWORK UPGRADES 0 300 114 414 294 71% 0 Complete, awaiting invoices

IT CORPORATE SOFTWARE 230 31 45 76 8 10% 3 Procurement SERVER RECONFIGURATION 32 32 (32) 0 0 0% 0 Initial works ASSET MANAGEMENT SYSTEM UPGRADES 0 24 (15) 9 9 103% 15 Deferred/Cancelled PLANT PURCHASES 3,692 4,287 0 4,287 1,874 44% 1,541 Procurement

Corporate: Finance


CORPORATE: FINANCE

$'000



PROPOSED VARIATIONS


ACTUAL YTD

ACTUAL YTD/


PROJECT STATUS

MUDGEE DEPOT CAPITAL WORKS 191 191 (20) 171 124 73% 0 Final works RYLSTONE DEPOT CAPITAL WORKS 67 67 0 67 26 39% 19 Final works

Total 4,352 5,096 112 5,208 2,372 46% 1,578

Total Capital Works Program 46,655 43,022 (4,962) 38,061 19,079 57% 6,683


CORPORATE: FINANCE

Capital Funding ($ '000)



PROPOSED VARIATIONS


ACTUAL YTD

ACTUAL YTD/ PROPOSED ANNUAL BUDGET

Capital Grants & Contributions (26,594) (20,845) 2,081 (18,764) (9,599) 51% External Restrictions S94 Developer Contributions - General (1,181) (1,314) 0 (1,314) (872) 66% S64 Developer Contributions - Water Fund (3,580) (1,797) 1,000 (797) (797) 100% S64 Developer Contributions - Sewer Fund (355) (368) 0 (368) (337) 92% S93F Developer Contributions (217) (143) (122) (265) (93) 35% Specific Purpose Unexpended Grants (61) (61) 0 (61) (25) 41% Reserves - Water (1,855) (2,044) 663 (1,381) (1,112) 81% Reserves - Sewerage Services (2,260) (2,487) 773 (1,714) (1,054) 62% Reserves - Domestic Waste Management (690) (720) (166) (886) (447) 50%

Other - Water (135) (135) 45 (90) (62) 69% Other - Sewerage Services (47) (47) 15 (32) (19) 59% Other - Waste Management 0 0 0 0 0 0%

Internal Restrictions Reserves - Plant & Vehicle Replacement (2,877) (3,472) 0 (3,472) (1,847) 53% Reserves - Asset Replacement (1,580) (1,624) 252 (1,371) (859) 63% Reserves - Capital Program (863) (1,063) 191 (873) (600) 69% Reserves - Land Development 0 (120) (125) (245) (228) 93% Reserves - Saleyards (10) (10) 0 (10) (10) 100% Income from Sale of Assets General Purpose Revenue (4,351) (6,772) 355 (6,418) (1,118) 17% Total Capital Funding (46,655) (43,022) 4,962 (38,061) (19,079) 50%

Corporate: Finance


CORPORATE: FINANCE

7. Consolidated Income Statement and Balance Sheet

$'000

ORIGINAL ANNUAL

BUDGET APPROVED VARIATIONS

REVISED ANNUAL BUDGET ACTUAL YTD

% REVISED BUDGET

PROPOSED VARIATIONS

PROJECTED ANNUAL BUDGET

% PROJECTED ANNUAL BUDGET

INCOME

Rates & Annual Charges (26,831) 0 (26,831) (26,724) 100% 49 (26,782) 100%User Charges & Fees (11,272) (69) (11,341) (9,787) 86% (4,888) (16,229) 60%Interest & Investment Revenue (1,245) (3) (1,248) (878) 70% 0 (1,248) 70%Other Revenues (2,107) 43 (2,064) (1,595) 77% (21) (2,085) 76%Grants & Contributions Operating (12,370) (648) (13,018) (10,134) 78% (93) (13,111) 77%Grants & Contributions Capital (29,718) 6,088 (23,630) (10,904) 46% 2,081 (21,549) 51%Total Income (83,543) 5,411 (78,132) (60,022) 77% (2,872) (81,004) 74%

EXPENDITURE

Employee Benefits & Oncosts 22,354 (10) 22,344 14,424 65% (164) 22,180 65%Borrowing Costs 1,226 0 1,226 402 33% 0 1,226 33%Materials & Contracts 9,520 1,296 10,816 7,982 74% 2,991 13,807 58%Depreciation & Amortisation 16,276 0 16,276 8,985 55% 0 16,276 55%Other Expenses 6,331 159 6,490 4,840 75% (119) 6,371 76%Loss on Disposal of Assets 1,001 0 1,001 82 0% (146) 855Total Expenditure 56,708 1,445 58,153 36,715 63% 2,562 60,715 60%

Net Result (26,835) 6,856 (19,979) (23,307) (310) (20,289)Net Result before Capital Items 2,883 768 3,651 (12,403) (2,391) 1,260

Income Statement - CONSOLIDATED


CORPORATE: FINANCE

$'000 ACTUAL YTD ACTUAL 30 JUNE 2015

ASSETS

Current AssetsCash & Cash Equivalents 40 1,581 Investments 57,245 46,300 Receivables 7,578 8,513 Inventories 1,122 1,127 Other 0 59 Total Current Assets 65,985 57,580 Non-Current AssetsInvestments 0 - Receivables 60 60 Inventories 0 - Infrastructure, Property, Plant & Equipment 845,694 835,817 Intangible Assets 309 409 Other 0 - Total Non-Current Assets 846,063 836,286 TOTAL ASSETS 912,048 893,866

LIABILITIES

Current LiabilitiesPayables 2,893 7,323 Borrowings 714 1,410 Provisions 5,784 5,783 Total Current Liabilities 9,391 14,516 Non-Current LiabilitiesBorrowings 17,759 17,759 Provisions 1,223 1,222 Total Non-Current Liabilities 18,982 18,981 Total LIABILITIES 28,373 33,497 Net Assets 883,675 860,369

EQUITY

Retained Earnings 369,722 346,416 Revaluation Reserves 513,953 513,953 Total Equity 883,675 860,369

Balance Sheet

Corporate: Finance


8. Key Financial Indicators

Note: Excludes Water & Sewer Fund

Measures Council’s ability to keep operating expenses, including depreciation, within its continuing revenue.



Measures Council’s degree of reliance on external funding.

Corporate: Finance



The rate at which assets are being renewed against the rate of depreciation.


CORPORATE: FINANCE

9. Contract, Legal Expenses & Consultancies

CONTRACTS > $50,000 The following contracts with a value greater than $50,000 were entered into during the period 1 October 2015 to 31 March 2016.

Note that individual Panel tender appointments are not included in the table below. For example, provision of general contractor services. Council creates panels of preferred suppliers from the tender responses received. Purchases are then made from the preferred supplier lists, and purchase decisions may vary for particular works depending upon availability and location.

CONTRACTOR PURPOSE VALUE ($) START DATE DURATION MONTHS

BUDGETED

Forpark Supply and Install playground at Bellevue 173,942.50 16/11/2015 3 Y Iveco Trucks Australia Ltd Supply of Superior Pak Iveco garbage

compactor 389,283.00 2/12/2015 4 Y

Tutt Bryant Equipment Supply of three Bomag smooth drum rollers

510,675.00 8/12/2015 3 Y

Murray Construction PL Design and Construct 4 bridges. Stoney Creek Bridge, McDonalds Creek Bridge, Butterfactory Bridge and Green Gully Bridge.

1,589,600.00 30/11/2015 6 Y

Local Government Engineering Services

Design and project management of Wollar Road upgrade

639,260.00 13/11/2015 36 Y

Agile Arbor RFS hazard reduction slashing 71,798.00 20/11/2015 3 Y Ledonne Constructions Pty Ltd

Supply and install water and sewage distribution infrastructure - West Mudgee

1,655,881.28 6/01/2015 5 Y

Waste Initiatives Supply and install cardboard press and in feed conveyor

180,166.00 26/11/2015 4 Y

Scone Outdoors Supply and deliver Torro Reelmaster Mower 85,625.00 7/03/2016 3 Y

Tracserv P/L Supply Isuzu Trucks - Roads Minatenance 474,840.00 15/03/2016 3 Y Oasis Skateparks Construct Rylstone Skatepark 115,000.00 8/03/2016 3 Y

Corporate: Finance


CORPORATE: FINANCE

CONTRACTOR PURPOSE VALUE ($) START DATE DURATION MONTHS

BUDGETED

Poonindie Pty Ltd t/a Ted Wilson and Sons Construct sewage pumping station 582,249.00 26/02/2016 3 Y

LEGAL EXPENSES This financial year to date, Council has incurred $192,107 of legal expenses. The primary areas of expenditure are:

Development Control – DA’s

Employment matters

Debt recovery

CONSULTANCIES A consultant is a person or organisation engaged under contract on a temporary basis to provide recommendations or high level specialist or professional advice to assist decision making by Management. Generally, it is the advisory nature of the work that differentiates a consultant from other contractors.

This financial year to date, Council has incurred $670,672 of consultancy expenses. The primary areas of expenditure are:

Road Design

Timber bridge assessments

Procurement strategy

Sewer management

Environmental impact study

Records management

IT Support


CORPORATE: FINANCE

10. Investment Portfolio Commentary

For the quarter ended 31 March 2016, Council’s return on investment portfolio of 2.87% exceeded the benchmark rates of 2.76% (180 Day Term Deposit Index) and 2.55% (90 Day Term Deposit Index). Deposits are currently being targeted at the 180 day and 1 year terms, which at present are offering the best interest rates whilst meeting Councils continual cash commitments.

The two graphs presented below demonstrate the performance of Council’s portfolio for the last twelve months against the benchmarks of budgeted interest income and the 90 – 180 Day Average Term Deposit Index.

Corporate: Finance


CORPORATE: FINANCE The Reserve Bank of Australia (RBA) decided to leave the cash rate unchanged at 2% at its April Board meeting. In relation to considerations for

monetary policy decision the RBA noted “In aggregate, the outlook was for growth in Australia's major trading partners to remain a little below average, as previously forecast. Globally, inflation had remained low and very easy monetary policies were continuing to provide support to global demand” (Reserve Bank of Australia, 2016).

In the NSW TCorp Weekly Economics Report 18 April 2016 they note that “Australian firms are getting more optimistic as they report an improvement in actual trading activity. In contrast, households have become glum, with consumer sentiment falling 4% in April. And while the trend in job advertisements is weakening, actual employment growth was solid in March, after a few weak outcomes in previous months”. Statistics provided also show that the TCorp Bond yield curve for less than 4 year term is highest around the 180 day term. The cash rate is expected to remain around 2% in the medium term (1-2 years).

In view of this, the investment strategy is to continue targeting the majority of maturities at around a 6 month term, while maintaining capital security and sufficient cash flow to fund the large capital works program proposed in the Delivery Program. In order to reduce interest rate risk some investments are being targeted at the 1 year term.

Reference List:

Reserve Bank of Australia, 2016. Minutes of the Monetary Policy Meeting of the Reserve Bank Board 5 April 2016.

National Australia Bank, 2016. Australian Markets Weekly – 4 April 2016.

TCorp Local Government Services, 2016. Weekly Economics Report 18 April 2016.


CORPORATE: FINANCE

11. Investment Portfolio Balances as at 31 March 2016

For the month ended: 31-Mar-16

Bank AccountOpening Balance Receipts Payments

Closing Balance

Overdraft Limit

National Australia Bank (Corporate Cheque Account) 264,024$ 15,800,523$ 16,055,018$ 9,528$ 700,000$

The bank balances have been reconciled to the General Ledger as at 31/03/2016

Financial Claims Scheme

1 Guaranteed to $250,0002 Not Covered

Corporate: Finance


CORPORATE: FINANCE

Investments TypeAmount

$'000 Yield % Maturity Date TermLong Term

RatingShort Term

Rating

Financial Claims

SchemeNational Australia Bank At Call 3,045 2.30% NA At Call AA A-1+ 1National Australia Bank Term Deposit 1,600 3.02% 6/07/2016 364 AA A-1+ 2National Australia Bank Term Deposit 1,000 2.95% 13/04/2016 189 AA A-1+ 2National Australia Bank Term Deposit 1,200 2.98% 20/04/2016 189 AA A-1+ 2National Australia Bank Term Deposit 1,000 2.97% 27/04/2016 182 AA A-1+ 2National Australia Bank Term Deposit 1,000 2.91% 11/05/2016 182 AA A-1+ 2National Australia Bank Term Deposit 1,000 3.05% 20/07/2016 196 AA A-1+ 2National Australia Bank Term Deposit 1,000 3.00% 15/02/2017 364 AA A-1+ 2National Australia Bank Term Deposit 2,000 3.00% 5/10/2016 217 AA A-1+ 2National Australia Bank Term Deposit 1,000 3.15% 26/10/2016 210 AA A-1+ 2St George Bank Term Deposit 1,000 3.02% 13/07/2016 189 AA A-1+ 1St George Bank Term Deposit 1,000 2.90% 31/08/2016 196 AA A-1+ 2St George Bank Term Deposit 2,000 2.90% 7/09/2016 203 AA A-1+ 2St George Bank Term Deposit 2,500 2.83% 28/09/2016 212 AA A-1+ 2St George Bank Term Deposit 1,000 2.95% 12/10/2016 217 AA A-1+ 2St George Bank Term Deposit 500 2.90% 19/10/2016 217 AA A-1+ 2St George Bank Term Deposit 1,000 3.05% 26/10/2016 210 AA A-1+ 2Bankwest Term Deposit 2,300 2.85% 6/04/2016 189 AA A-1+ 1Bankwest Term Deposit 1,000 2.80% 27/04/2016 184 AA A-1+ 2Bankwest Term Deposit 1,500 3.00% 1/06/2016 189 AA A-1+ 2Bankwest Term Deposit 1,000 2.95% 8/06/2016 191 AA A-1+ 2Bankwest Term Deposit 2,000 2.95% 15/06/2016 198 AA A-1+ 2Bankwest Term Deposit 700 3.00% 13/07/2016 210 AA A-1+ 2Bankwest Term Deposit 1,000 2.93% 17/08/2016 203 AA A-1+ 2Bankwest Term Deposit 1,500 2.90% 24/08/2016 196 AA A-1+ 2Bankwest Term Deposit 1,500 2.90% 21/09/2016 210 AA A-1+ 2ANZ Term Deposit 1,000 2.94% 29/06/2016 203 AA A-1+ 1ANZ Term Deposit 1,000 2.86% 14/09/2016 203 AA A-1+ 2AMP Term Deposit 1,500 3.00% 3/08/2016 182 A+ A-1 1AMP Term Deposit 1,000 3.00% 17/08/2016 189 A+ A-1 2Bank of Queensland Term Deposit 2,000 3.00% 22/06/2016 203 A- A-2 1Bank of Queensland Term Deposit 800 3.10% 3/08/2016 203 A- A-2 2Bank of Queensland Term Deposit 1,300 3.10% 19/10/2016 224 A- A-2 2Bendigo & Adelaide Bank Term Deposit 1,500 2.85% 2/11/2016 364 A- A-2 1ING Bank Term Deposit 2,000 2.89% 4/05/2016 182 A- A-2 1ING Bank Term Deposit 1,500 3.10% 1/03/2017 364 A- A-2 2Members Equity Bank Term Deposit 1,800 3.05% 27/07/2016 231 BBB+ A-2 1Members Equity Bank Term Deposit 1,500 3.09% 10/08/2016 196 BBB+ A-2 2Peoples Choice C/Union Term Deposit 2,000 2.93% 25/05/2016 189 BBB+ A-2 1Peoples Choice C/Union Term Deposit 1,500 2.93% 18/05/2016 182 BBB+ A-2 2MyState Bank Term Deposit 1,000 3.08% 24/08/2016 203 BBB A-2 1Family First Credit Union Term Deposit 500 2.85% 20/04/2016 182 Unrated Unrated 1Total Investments 57,245


CORPORATE: FINANCE

Corporate: Finance


CORPORATE: FINANCE

12. Councillor Fees Paid & Expenses Paid or Reimbursed as at 31 March 2016

General Operations Cr Cavalier Cr Kennedy Cr Martens Cr Shelley Cr Thompson Cr Walker Cr Weatherley Cr Webb Cr White TOTALCouncillor Fees - 8,257.50 8,257.50 8,257.50 8,257.50 8,257.50 8,257.50 8,257.50 8,257.50 8,257.50 74,317.50$ Mayoral Fees - - 18,022.50 - - - - - - - 18,022.50$ Council Meeting Expenses (inc. accommodation, travel & meals) 3,551.99 - - 1,720.86 777.00 - - - 1,724.20 103.70 7,877.75$ Councillor Conferences, Seminars and Representational/Lobbying Expenses (inc. accommodation, travel, meals & out-of-pocket) - - 2,081.88 - - - - - - 1,044.54 3,126.42$ Provision of Vehicle 5,762.32 - - - - - - - - - 5,762.32$ Memberships & Subscriptions 77,666.76 - - - - - - - - - 77,666.76$ Miscellaneous expenses (meals, sundries, stationery, etc) but not associated with Conferences, Seminars & Training 399.45 - 10.95 456.36 1,277.05 - 202.73 - 225.45 - 2,571.99$ Provision of office equipment, such as laptop computers, mobile telephones, landline telephones and facsimile machines installed in Councillors homes (including equipment and line rental costs and internet access costs but not including call costs) 559.78 1,376.04 1,598.87 741.45 1,575.53 - 1,587.40 465.60 1,985.84 1,292.39 11,182.90$ Totals 87,940.30$ 9,633.54$ 29,971.70$ 11,176.17$ 11,887.08$ 8,257.50$ 10,047.63$ 8,723.10$ 12,192.99$ 10,698.13$ 200,528.14$

Councillor Fees Paid & Expenses Paid or Reimbursed as at 31 March 2016

CORPORATE: FINANCE


Documents

QUARTERLY BUDGET REVIEW MARCH 2016 - Mid-Western … · Ordered Work - Sydney Road Asphalt $452k Ordered Work - Ilford Rest Area Septic Upgrade $36k Ordered Work - Guardrail Replacement