Half-year review identifies savings to fund Bluewater costs
February 29, 2016
A half-year review of Colac Otway Shire Council's financial position has identified enough savings to pay for the unbudgeted costs incurred during the Bluewater redevelopment.
The total unbudgeted expenditure for Bluewater was $840,505, all of which will be paid for through savings and previously planned budget allocations.
Mayor Frank Buchanan said Council's 2015-16 budget set aside $344,000 for Bluewater, which was the known unbudgeted costs at the time.
A recently-completed half-year financial review has identified the remaining $496,505 in savings to pay for the project. These saving were achieved through improved business practises, projects delivered under budget and savings to operating costs.
Cr Buchanan said it was the second consecutive year Council had conducted a half-year financial review to ensure Council's long-term financial sustainability and readiness to respond to current and emerging issues.
"While we are not satisfied that the Bluewater project went over budget, the half-year budget review has identified savings to fund the project overspend without adversely impacting other Council programs or services," Cr Buchanan said.
"This demonstrates the purpose and the value of the half-year review – to more closely monitor Council's financial performance and manage resources responsibly and strategically."
Other financial matters reported through the half-year review include the costs of the bushfire response, which are projected to total $2.9 million by the end of the financial year.
Cr Buchanan said much, if not all of those costs, would be claimable for reimbursement from the Federal Government.
The report highlights that Council has sought financial support from the State Government to offset the costs of the $400,000 rate relief package for victims of the Christmas Day bushfires.
The $2.5 million Federal Government funding for the Central Reserve off-field facilities redevelopment will be carried into the 2016-17, when construction work is anticipated to start.
Cr Buchanan said Council had invested extra time on the design phase with Central Reserve user groups.
"Due to the State Government's lack of interest in supporting this important project, we have had to work with netballers, footballers and other reserve users to re-scope and redesign the project to fit the available budget," he said.
"We'd like our community to know that we are still strongly advocating the benefits of this project to the Sports Minister John Eren in the hope of attracting further funding so we can deliver the off-field facilities our community needs and deserves."
The half-year review identifies that $25,000 in savings will be directed to improvements to computer systems to make the planning department more efficient, and $97,000 will go towards a reserve to pay for the upcoming Local Government elections.
The achievement of an operating surplus for the 2015-16 financial year continues to be a priority, and at the end of January 2016 Council had a cash balance of $9.04 million, which is a similar result as the same time in 2015.
Cr Buchanan said the report confirmed that Council continued to deliver a balanced budget and remained financially sustainable.
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