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HONG KONG URBAN COUNCIL
119
ADDRESS BY CHAIRMAN
CHAIRMAN (in English):-Ladies and Gentlemen, may I call the meeting to order.
MINUTES
The minutes of meeting held on 8 December 1992 were confirmed.
PAPER
The following paper was laid on the table:—
(1) Report to the Urban Council by the Secretary, Urban Council, for the month of December 1992.
MOTIONS
(1) THE CHAIRMAN, URBAN COUNCIL, moved the following motion:-
'That the Estimates of Revenue and Expenditure for 1993/94 and the list of works which the Council proposes to undertake during the next financial year be approved for transmission to the Governor in accordance with Section 39 of the Urban Council Ordinance.'
He said (in English):-I move the adoption of today's Motion on the Urban Council's budget and the accompanying list of capital works for the 1993/94 financial year commencing on 1 April 1993.
The budget before members is the sum total of all budget papers which have been agreed by the Council's respective functional Select Committees and approved by the Standing Committee of the Whole Council.
The Council's budgeting philosophy consists of three elements:-
(a) the financial resources required to maintain the existing level of services and activities;
(b) the resources required to increase or improve the existing level of services or activities, and the introduction of new services or activities in accordance with approved policies; and
(c) the introduction of new or additional services and activities arising from completion of capital projects.
Based on current projections, the Council's finances are at present quite healthy with reserves expected to be in the order of 16 weeks' expenditure as at 31 March 1994.
This motion will be seconded by Mr. Brook BERNACCHI, as Chairman of the Finance Select Committee and I shall leave it to him to spell out the more salient figures contained in the budget.
I move the motion standing in my name.
MR. B. A. BERNACCHI, CHAIRMAN OF THE FINANCE SELECT COMMITTEE, seconded the motion (in English): Mr. Chairman, the Council's budget placed before members today projects a surplus of $47 million for the fiscal year 1993/94 as compared with a probable surplus of about $735 million for the current year.
If a surplus of $735 million in the current fiscal year is realised, this will result in an increase of $95 million over the surplus of $640 million projected this time last year. This is mainly attributable to a net reduction in expenditure over that originally forecast.
In the coming fiscal year expenditure is expected to rise to $5.1 billion, an increase of $889 million or 21%, whilst revenue to $5.15 billion, an increase of $201 million or 4% over the current fiscal year.
As regards expenditure, it is anticipated that approximately 57% of our budget will be spent on staff costs, 21% on operational expenditure, 17% on capital projects and 5% to meet special expenditure and other contingencies. In the light of this breakdown and as a labour-intensive organisation, we must clearly continue, as far as possible, to exercise tight control on staffing levels to improve management and operational efficiency. In this respect, in addition to our control over the staff strength, we are continuing carefully to contract out more of our services to the private sector; we want to introduce more modern management techniques and technology. I hope these measures will lead to further savings in real terms in personal emoluments.
The main sources of revenue remain from rates and secondary sources, i.e. fees, charges, rentals and bank interest, which are estimated to be in the ratio of 81% to 19% respectively. The projected rates income is $4.18 billion and secondary sources of revenue $967 million. These are derived mainly from:—
(1) admission and hire charges $264 million,
(2) rentals $302 million,
(3) fees and charges $115 million,
(4) licences and permits $118 million, and (5) bank interest $100 million.
Based on these figures, the Council's reserves are expected to be in the order of $1.48 billion as at 31 March 1993 rising to over $1.5 billion as at 31 March 1994 at a conservative estimate. The latter figure is equivalent to approximately 16 weeks' expenditure.
In conclusion, I would like to thank all chairmen and members of the various Select Committees and Sub-Committees who have carefully considered their respective budgets, also the Director, the Assistant Director (Finance) and staff of the Urban Services Department who have contributed towards this budget that now lies before members.
Mr. Chairman, I second the motion.
Page 71 of 126
Page 71 of 126
HONG KONG URBAN COUNCIL
119
ADDRESS BY CHAIRMAN
CHAIRMAN (in English):-Ladies and Gentlemen, may I call the meeting to order.
MINUTES
The minutes of meeting held on 8 December 1992 were confirmed.
PAPER
The following paper was laid on the table:—
(1) Report to the Urban Council by the Secretary, Urban Council, for the
month of December 1992.
MOTIONS
(1) THE CHAIRMAN, URBAN COUNCIL, moved the following motion:-
'That the Estimates of Revenue and Expenditure for 1993/94 and the list of works which the Council proposes to undertake during the next financial year be approved for transmission to the Governor in accordance with Section 39 of the Urban Council Ordinance."
He said (in English):-I move the adoption of today's Motion on the Urban Council's budget the accompanying list of capital works for the 1993/94 financial year commencing on 1 April 1993.
The budget before members is the sum total of all budget papers which have been agreed by the Council's respective functional Select Committees and approved by the Standing Committee of the Whole Council.
The Council's budgeting philosophy consists of three elements:-
(a) the financial resources required to maintain the existing level of services
and activities;
(b) the resources required to increase or improve the existing level of services or activities, and the introduction of new services or activities in accordance with approved policies; and
(c) the introduction of new or additional services and activities arising from
completion of capital projects.
Based on current projections, the Council's finances are at present quite healthy with reserves expected to be in the order of 16 weeks' expenditure as at 31 March 1994.
This motion will be seconded by Mr. Brook BERNACCHI, as Chairman of the Finance Select Committee and I shall leave it to him to spell out the more salient figures contained in the budget.
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I move the motion standing in my name.
MR. B. A. BERNACCHI, CHAIRMAN OF THE FINANCE SELECT COMMITTEE, seconded the motion (in English): Mr. Chairman, the Council's budget placed before members today projects a surplus of $47 million for the fiscal year 1993/94 as compared with a probable surplus of about $735 million for the current year.
If a surplus of $735 million in the current fiscal year is realised, this will result in an increase of $95 million over the surplus of $640 million projected this time last year. This is mainly attributable to a net reduction in expenditure over that originally forecast.
In the coming fiscal year expenditure is expected to rise to $5.1 billion, an increase of $889 million or 21%, whilst revenue to $5.15 billion, an increase of $201 million or 4% over the current fiscal year.
As regards expenditure, it is anticipated that approximately 57% of our budget will be spent on staff costs, 21% on operational expenditure, 17% on capital projects and 5% to meet special expenditure and other contingencies. In the light of this breakdown and as a labour intensive organisation we must clearly continue, as far as possible, to exercise tight control on staffing levels to improve management and operational efficiency. In this respect, in addition to our control over the staff strength, we are continuing carefully to contract our more of our services to the private sector, we want to introduce more modern management techniques and technology. I hope these measures will lead to further savings in real terms in personal emoluments.
The main sources of revenue remain from rates and secondary sources, i.e. fees, charges, rentals and bank interest, which are estimated to be in the ratio of 81% to 19% respectively. The projected rates income is $4.18 billion and secondary sources of revenue $967 million. These are derived mainly from:—
(1) admission and hire charges $264 million,
(2) rentals $302 million,
(3) fees and charges $115 million,
(4) licences and permits $118 million, and (5) bank interest $100 million.
Based on these figures, the Council's reserves are expected to be in the order of $1.48 billion as at 31 March 1993 rising to over $1.5 billion as at 31 March 1994 at a conservative estimate. The latter figure is equivalent to approximately 16 weeks' expenditure.
In conclusion, I would like to thank all chairmen and members of the various Select Committees and Sub-Committees who have carefully considered their respective budgets, also the Director, the Assistant Director (Finance) and staff of the Urban Services Department who have contributed towards this budget that now lies before members.
Mr. Chairman, I second the motion.
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