PALERANG COUNCIL LONG TERM FINANCIAL PLAN
2016-2026
As amended on 14 December 2015
for public exhibition until 30 January 2016
1
TABLE OF CONTENTS
1.
INTRODUCTION........................................................................................................ 4
1.1
1.2
What is a Long Term Financial Plan ............................................................. 5
Council Profile .............................................................................................. 6
2.
FINANCIAL STRATEGY ........................................................................................... 7
3.
LONG TERM FINANCIAL SUSTAINABILITY ........................................................... 9
4.
ASSUMPTIONS AND INDICES ................................................................................10
5.
SCENARIOS .............................................................................................................14
6.
KEY PERFORMANCE INDICATORS .......................................................................17
7.
SENSITIVITY ANALYSIS .........................................................................................25
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APPENDIX A
ORIGINAL - LTFP BASE CASE CONSOLIDATED INCOME STATEMENT & FUNDED RESULT
APPENDIX B
ORIGINAL - LTFP BASE CASE CONSOLIDATED STATEMENT OF FINANCIAL POSITION
APPENDIX C
ORIGINAL - LTFP BASE CASE CONSOLIDATED CASH FLOW STATEMENT
APPENDIX D
ORIGINAL - LTFP BASE CASE CONSOLIDATED CAPITAL PROGRAM
APPENDIX E
ORIGINAL - LTFP BASE CASE CONSOLIDATED RESERVE BALANCES
APPENDIX F
SCENARIO 1 – “DETERIORATE” - LTFP GENERAL FUND ONLY INCOME STATEMENT & FUNDED RESULT
APPENDIX G
SCENARIO 1 – “DETERIORATE” - LTFP GENERAL FUND ONLY STATEMENT OF FINANCIAL POSITION
APPENDIX H
SCENARIO 1 – “DETERIORATE” - LTFP GENERAL FUND ONLY CASH FLOW STATEMENT
APPENDIX I
SCENARIO 2 – “STABILISE” - LTFP GENERAL FUND ONLY INCOME STATEMENT & FUNDED RESULT
APPENDIX J
SCENARIO 2 – “STABILISE” - LTFP GENERAL FUND ONLY STATEMENT OF FINANCIAL POSITION
APPENDIX K
SCENARIO 2 – “STABILISE” - LTFP GENERAL FUND ONLY CASH FLOW STATEMENT
APPENDIX L
SCENARIO 2 – “STABILISE” - LTFP SRV PROGRAM OF WORKS
APPENDIX M
SCENARIO 2 – “STABILISE” - LTFP FIT FOR THE FUTURE RATIOS
APPENDIX N
SCENARIO 3 – “IMPROVE” - LTFP GENERAL FUND ONLY INCOME STATEMENT & FUNDED RESULT
APPENDIX O
SCENARIO 3 – “IMPROVE” - LTFP GENERAL FUND ONLY STATEMENT OF FINANCIAL POSITION
APPENDIX P
SCENARIO 3 – “IMPROVE” - LTFP GENERAL FUND ONLY CASH FLOW STATEMENT
APPENDIX Q
SCENARIO 3 – “IMPROVE” - LTFP SRV PROGRAM OF WORKS
APPENDIX R
SCENARIO 3 – “IMPROVE” - LTFP FIT FOR THE FUTURE RATIOS
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1.
INTRODUCTION
The Long Term Financial Plan (LTFP) is an important part of Council’s Strategic Planning process that provides a means to forecast Council’s
capacity to provide financial resources to meet the objectives outlined in the Community Strategic Plan (CSP). The CSP 2014 - 2024 defines a
sustainable Vision for Palerang and sets out seven Key Categories that Council will follow to achieve the needs of our community over the next
20 years. The seven Key Categories are:
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Natural environment
Local economy
Community and culture
Rural and urban development
Recreation and open space
Infrastructure and transport
Local governance and finance
Each is supported by a series of priorities, strategies and indicators of success that form the actions which will deliver progress over the next 10
years towards successful completion. The LTFP really tests the community’s aspirations outlined in the CSP against financial reality. However it
is not intended to be a document that specifically indicates to what services or proposals funds should be allocated; rather it addresses areas
that impact on the Council’s ability to fund its services and capital works, while living within its means and ensuring long term financial
sustainability.
The Long Term Financial Plan (LTFP) is a requirement under the Integrated Planning and Reporting framework for NSW Local Government and
forms part of the Resourcing Strategy.
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1.1
What is a Long Term Financial Plan
Council’s LTFP forecasts the long term financial position of council based on current levels of services and service delivery applying Council’s
existing policies and taking into account Council’s CSP.
The LTFP is a decision making and problem solving tool that supports Council and the community to determine how Council will fund the CSP
into the future and remain sustainable. It provides the ability to scenario test options and assesses the impact on Council’s revenue, operational
and capital expenditure forecasts, reserves and asset balances.
It is a requirement that the LTFP include the following key components:
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Projected income and expenditure, balance sheet and cash flow statement;
Planning assumptions used;
Methods of monitoring financial performance;
Sensitivity analysis;
Financial modelling for different scenarios.
The LTFP must be reviewed annually by Council as part of preparing the Operational Plan each year and have a minimum of a 10 year outlook
to ensure this aligns with the CSP. A more detailed review of the LTFP will occur every 4 years with the election of each new Council and their
review of the Delivery Program and CSP.
Council is proposing to address its long term financial sustainability by increasing its revenue stream with a proposed Special Rate Variation.
This amended Long Term Financial Plan includes the revised forecasts for the 10 year LTFP to reflect the financial position of council with a
proposed Special Rate Variation of 9.5% (comprising 2.5% estimated rate peg plus 7% special rate) for five years 2016/17-2020/21, held
permanently in the rates. Additional forecasts are provided to reflect an alternative scenario based on a 7.5% SRV (comprising 2.5% estimated
rate peg plus 5% special rate) and Base Case (2.5% rate peg only)
From 2022 these revised forecasts reflect rate increases limited to the estimated 2.5% annual rate peg as determined by the State Government.
UPDATE: The rate peg for 2016/17 has been determined at 1.8% and subsequently reduces the proposed Special Rate Variation in 2016/17.
The estimated rate peg still applies for future years. The revised scenarios based on the actual rate peg are reflected in this amended plan.
The purpose of the proposed Special Rate Variation is to provide long term sustainability and the additional funds raised to be applied to
identified community priority projects and services.
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1.2
Council Profile
Palerang Council was proclaimed on 11 February 2004 and covers 5,147square kilometres and has a 2014 estimated population of 15,510.
While the word shire is not officially part of our name, we typically use shire as short hand for the official terminology “local government area”.
The Palerang local government area comprises the villages of Bungendore, Braidwood and Captains Flat, along with the outlying villages of
Araluen, Mongarlowe, Majors Creek and Nerriga. It also encompasses the settlements of Bywong, Burra, Royalla, Hoskinstown, Rossi,
Carwoola, Stoney Creek and Wamboin.
Sharing its western boundary with the ACT and with the expansion of Canberra in the 1970s, the western ranges of Palerang have become
home to the largest rural residential population in NSW. Comprising allotments of 2-16 hectares, over half of Palerang’s population now resides
in these areas, covering the localities of Sutton, Bywong, Wamboin, Burra, Urila and parts of Carwoola and Royalla.
These areas have generally been developed on marginal quality farmland, attracting residents who are predominantly employed in the adjacent
urban centres of Canberra and Queanbeyan. Over the years, with interests in land conservation and rehabilitation, the new residents have
transformed the overrun, open grasslands into a picturesque landscape.
Without formal village centres, communities tend to have been built around Rural Fire Service centres, and local community halls that host a
range of community events and activities that enrich the social fabric of these areas.
The population of Palerang local government area was estimated at 14 635 at 30 June 2010. The annual population growth in the period 2005
to 2010 is estimated at 3.5%. During that same time, the NSW population grew by in the order of 1.4% per annum, making Palerang the fastest
growing local government area for that period.
For the financial year 2009-2010 it is estimated that the annual growth rate was 2.2% making Palerang the eleventh fastest growing local
government area in NSW for that year.
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2.
FINANCIAL STRATEGY
Council’s key objective when managing its financial resources is to remain financially sustainable. Council’s LTFP needs to demonstrate our
long term capacity to deliver the Strategic Objectives in the CSP, Delivery Program and Operational Plan, while remaining financially
sustainable. Financial sustainability is achieved when service and infrastructure levels are delivered according to a long term plan without the
need to significantly increase rates or significantly reduce services.
This LTFP describes base line forecasts that reflect Council’s CSP and continuity of the existing Revenue Policy. The indications are that this
path is not sustainable in the longer term and will require intervention in the coming years to ensure Council’s long term sustainability. This will
be a combination of different actions to reduce the cost of service delivery, increase revenue, reducing services, organisational constraint,
resource sharing and changes to existing policies.
While the short term financial capacity of the Council is considered sound there are some indications that council is not earning sufficient
revenue to maintain current service levels and assets over the long term. This is because the current levels of depreciation indicate that
Council’s assets are depreciating at a rate that is not matched by what Council is funding for their replacement. This tells us that we need to be
putting more Council funds into reserves for replacing our assets that is, more roads resealing, stormwater pipes replacement, replacing old
water mains and renewing sewer mains. Council has commenced addressing this issue as part of the development of the Asset Management
Plans and the ongoing development of this LTFP. This is indicated by the income statement and cash graphs below:
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Council’s Auditor confirmed that Council’s financial position had improved and was considered sound as at the end of June 2015. The ratios
below support that the current financial position has improved for the Council over recent years and in particular the strengthening reserve
position suggests that Council is responsibly addressing its long term position.
There is no doubt that Council’s position has been influenced by the poor amalgamation process of 2004 which had a significant impact on
revenue. However, over the next 5-20 years Council will continue to face many challenges that will require strong financial leadership and
creative solutions to meet its aspirations. The key challenges will include:
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Addressing Council’s medium to long term shortfall in the funding for infrastructure assets to ensure that levels of service can be
adequately maintained.
Ensuring that there is sufficient income earned over the life of Council assets to allow for their replacement and the continuity of the
service for which it is used.
Meeting expectations from all areas including community, service users and government by ensuring standards across key services
keep pace with demand and in balance with the capacity to fund these operations.
Demands associated with the management of climate change and environmental sustainability.
Unstable financial environment following the global financial crisis impacting on investments and its revenue flows
Increasing costs of some key suppliers such as energy, bitumen, concrete and water.
Local Government reform and the potential for further amalgamations.
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3.
LONG TERM FINANCIAL SUSTAINABILITY
Over recent years financial sustainability in local government has been a major cause for ongoing concern as requests from communities for
expanded services have increased beyond those traditionally provided. The historical failure of all tiers of government to properly maintain and
renew assets has also contributed to the backlog of infrastructure provision. The demand for expanded services has not always been matched
by revenue streams and improved operational efficiencies, as resources have been diverted from traditional areas of local government
expenditure. Rate pegging constraints, cost shifting, uncertainty over grant income, caps on local developer contributions and increased
maintenance due to an ageing infrastructure network all contribute to limit the ability of a council to plan for its future with high levels of certainty.
So how does Council achieve long term financial sustainability?
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Understand its existing position, the key drivers and the policies that create that position (LTFP)
Understand the consequences of continuing with existing policies into the future (Base Case in LTFP)
Calculate the likely consequences of pursuing different policies (Scenarios in LTFP)
Determine the parameters that meet the council’s financial strategy goals and choose the policy settings that provide the best chance
of achieving those goals (Council decision process – setting KPI’s)
Regularly measure progress and effectiveness of those policies and adjust as necessary (LTFP integration with Integrated Planning
Framework)
To determine if a Council can achieve long term financial sustainability, Council has selected a range of financial indicators to help monitor and
assess both Council’s financial position as well as financial performance. These are explained in more detail in Section 6 Key Performance
Indicators.
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4.
ASSUMPTIONS AND INDICES
The Long Term Financial Plan is based on the 2015/16 General Ledger Original Budget that is factored by a range of assumptions to forecast
the 10 year financial position. The comparative column identified as the current budget is the 2014/15 General Ledger Qtr3 Budget adopted by
Council.
The indices were derived from a number of sources like the Local Government Award, Independent Pricing and Regulatory Tribunal (IPART)
recommendations for various utilities and rates pegging, plus Council’s actual data over a 10 year period. Variation in actual prices and cost to
Council compared to the above indices will impact on financial results. The extent of this impact will depend on the size of the income or
expenditure that is subject to the indices, the extent of the variation, and degree to which Council is able to actively mitigate the variation.
Council will review its indices at least annually and analyse the impacts of these changes. Significant changes will be addressed as they
become known.
The key assumptions and indices are:
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Long Term Model Indexation Assumptions
Index Description
Rate Pegging
Annual Charge
User Charges
Fees
Employee
2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25
Rate % Rate % Rate % Rate % Rate % Rate % Rate % Rate % Rate %
1.8%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
3.7%
3.7%
3.7%
3.7%
3.7%
3.7%
3.7%
3.7%
3.7%
3.7%
3.7%
3.7%
3.7%
3.7%
3.7%
3.7%
3.7%
3.7%
3.7%
3.7%
3.7%
3.7%
3.7%
3.7%
3.7%
3.7%
3.7%
2.8%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
Super
3.0%
3.0%
3.0%
3.0%
3.0%
3.5%
3.5%
3.5%
3.5%
CPI
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
2.5%
Utility
Insurance
Road Cost
2.5%
3.0%
4.4%
2.5%
3.0%
5.5%
2.5%
3.0%
4.8%
2.5%
3.0%
4.1%
2.5%
3.0%
0.8%
2.5%
3.0%
3.7%
2.5%
3.0%
3.7%
2.5%
3.0%
3.7%
2.5%
3.0%
3.7%
Manual No Index
General Waste No
Recycling
General Waste with
Recycling
0.0%
8.5%
0.0%
7.5%
0.0%
6.5%
0.0%
5.5%
0.0%
5.5%
0.0%
5.5%
0.0%
3.5%
0.0%
3.5%
0.0%
3.5%
10.5%
9.5%
8.5%
7.5%
7.5%
7.5%
5.5%
5.5%
5.5%
Comments
Based on IPART for 2015/16
Based on average LGCI
Based on average LGCI
Based on average LGCI
Based on average Award
Increases
Based on super guarantee
movements plus award
TCorp 10 year CPI forecast
issued November 2013
Estimated forecast
Estimated forecast
Based on Road & Bridge
Construction Cost Index
Forecasts
No movement manual input
Based on LTP for Waste 8%
inc plus 0.5% growth
Based on LTP Waste 8% inc
plus 2% growth
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Rates and Annual Charges
Rate revenue projections are based on the application of the maximum permissible increase and an allowance for growth.
Rate increases in NSW have been determined by the State Government since 1977 through an approach known as rate pegging. In 2011, the
responsibility for determining the annual rate pegging increase was delegated to IPART. Councils are advised of the permissible increase
annually in December each year. The rate peg is based on the previous year movement in the Local Government Cost Index that was
established by IPART less a productivity coefficient.
Council has assumed that the existing rates and charges structure will continue to apply in the future and be increased by the Local
Government Cost Index plus a general growth factor of 0.5%. This is based on historical and future expectations of growth.
User Charges and Fees
Many Council services charge fees for the provision of the service. When setting the level of fees and charges as part of Council’s Operational
Plan, consideration is given to the nature of the service and any community service obligation as well as wider policy objectives such as equity
and social justice considerations.
Council’s fees and charges pricing basis vary according to which category the fee or charge falls under, either; zero cost recovery, partial cost
recovery, full cost recovery, regulatory, reference pricing and rate of return pricing.
Fees and charges have been forecast to be maintained at existing service levels and applied a general increase of 3.7% to most categories,
which reflects the forecast Local Government Cost Index reflecting cost increases to Council’s.
Grants and Contributions
Grants and contributions provide a significant source of revenue for Council. These can be of a capital or operational nature and may be
provided for general or specific purposes.
Any one off grant or contributions have been removed from future year forecasts. Section 94 income projections are based on the adopted
section 94 plan and anticipated timing of receipts including predications on when the new developments will be occurring. There are a number
of other grants that are fixed over agreed periods (Roads to Recovery grant) and in these cases expenditure has been set to match the agreed
grant funds for the specified period.
All other ongoing grants have been forecast to increase in line with the average increase for prior years (2.5%). Any changes in the timing or
quantum of these grants and contributions may have a direct impact on the timing of projects that are dependent on this type of funding.
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Other Revenue
This predominantly includes property rental income and fines. This has been forecast to increase in line with CPI.
Employee Costs
Employee costs includes the payment of salary and wages, overtime, casual labour, labour on costs such as annual leave, superannuation,
workers compensation, long service leave, associated costs such as training, protective clothing and fringe benefits tax. The LTFP projections
are based on the current employee establishment levels and service levels as a base, however incorporate service growth in some areas as
required.
Wage costs have been indexed by the Award index for FY2, while the average award increase of the last 10 years has been applied to the
remaining future year forecasts (3.0%).
Borrowing Costs
Loan repayments are modelled based on the existing loan programs that are already in place. The capital works program identifies a number of
projects that are proposed to be funded via new loans. Loan borrowings and terms were based on the rates as applied to the current borrowing
program being 6% over 25 years. However in practice most loans are renewable every 5 to 10 years.
This amended LTFP reflects additional loans and repayments associated with new projects identified for funding by the proposed Special Rate
Variation.
Depreciation
As an industry, Local Government has recognised it is faced with an asset maintenance backlog and the need to provide for ongoing asset
replacement. The consumption of these assets is represented by deprecation which is based on expected asset lives, condition assessments
and valuations. While the maturity of this information is improving, it is still not definitive and many of the assumptions are unproven due to the
nature of this exercise. In addition, changing technologies may impact on renewal and maintenance costs. Ongoing refinement of these
forecasts may result in revised useful lives which will impact on deprecation expenditure.
At this stage the depreciation rates of Council’s existing policy has been applied for the future years. Council has incorporated future year
depreciation that will apply to the capital program as assets are commissioned for use.
At this stage asset revaluations have not yet been incorporated into the base case model, which while increasing the value of Council assets
this will also impact depreciation levels in future years.
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Materials and Contracts
Material and contract expenses have also been forecast to increase based on CPI. However Council has also taken into account projects that
are considered one off in nature and therefore not carried these costs through to future years.
Utility and insurance costs have been identified separately and have been forecast to increase higher than CPI as shown in the table above.
5.
SCENARIOS
This LTFP scenario is a “benchmark” position to indicate the long term financial implications if council continues to operate within the same
policies and practices as currently employed.
The financial position is dependent on the activities council undertakes and therefore we still need to model a range of scenarios and then
assess these against the key performance indicators. It is intended that Council will move forward into the 2015/16 financial year with a base
line scenario and will then develop a revised set of scenarios looking at achieving financial sustainability for the consideration of the community
early in the new financial year. These new scenarios will form the first stage of the community consultation process on how Council can move
towards meeting financial sustainability.
A key scenario will be the sustainable scenario which will reflect the base case scenario plus additional capital expenditure required to either
maintain the current standard of the infrastructure assets, or bring the existing assets up to a satisfactory condition and also achieve financial
sustainability. Council has ageing assets with significant asset management responsibilities relative to its income base. The Asset Management
plans will set out the optimal schedule of proposed asset maintenance, renewal and replacement necessary to achieve the specified service
levels while minimising asset life cycle costs.
Proposed Special Rate Variation 2016 – 2021
Council proposes to apply for a Special Rate Variation (SRV) for the five years 2016/17 – 2020/21. In December 2015 the State Government
advised that the rate peg is 1.8% for 2016/17. This Draft Long Term Financial Plan (as amended) has been updated to reflect the actual rate
peg for 2016/17. Future years are maintained on an estimated rate peg of 2.5% in accordance with advice by the Independent Pricing and
Regulatory Tribunal.
This Draft Long Term Financial Plan (as amended) provides three scenarios reflecting a “Base Case” and two options for special rate variation.
The scenarios reflect the actual rate peg as recently determined at 1.8% for 2016/17 and future years maintain the estimated rate peg of 2.5%.
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Therefore three General Fund scenarios are included in the amended LTFP 2016-2026:

Scenario 1: Base Case (“Deteriorate”) – annual increase to general rates is limited to the 1.8% rate peg as determined for 2016/17 and
future years at an estimated 2.5% rate peg. Scenario 1 is a “benchmark” position to indicate the long term financial implications if
council continues to operate within the same policies and practices as currently employed. Highlights:
 Operating Performance Ratio achieved 2024/25
 No new works

Scenario 2: Financial Sustainability through a Proposed Special Rate Variation (“Stabilise”) – annual increase to general rates by
proposed Special Rate Variation for five years, as follows:
 2016/17:
6.8% Special Rate Variation (comprising 1.8% rate peg plus 5% special rate)
 2017/18 – 2020/21: 7.5% Special Rate Variation (comprising the estimated 2.5% rate peg plus 5% special rate) each year.
The increases are to be held permanently in the rates and following this five year period (i.e. from 2022) the annual increase to general
rates is limited to the estimated 2.5% rate peg. The additional revenue stream raised by the proposed SRV is to be applied to loan
repayments and seed funding for identified community priority projects and services as reflected in this amended Long Term Financial
Plan. Highlights:
 Operating Performance Ratio achieved 2019/20
 Infrastructure Backlog Ratio achieved 2019/20
 $18,927,427 in new capital works and asset renewal
 $8,043,944 additional operating expenditure
 $4,550,000 new loans
 $1,064,848 loan interest
 $767,260 SRV funds unexpended at year 10, required for loan repayments in years 11 & part year 12
 Loan repayments for years 12-15 to be funded from additional rate revenue retained from SRV
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Scenario 3: Financial Sustainability through a Proposed Special Rate Variation (“Improve”) – annual increase to general rates by
proposed Special Rate Variation for five years, as follows:
 2016/17:
8.8% Special Rate Variation (comprising 1.8% rate peg plus 7% special rate)
 2017/18 – 2020/21: 9.5% Special Rate Variation (comprising the estimated 2.5% rate peg plus 7% special rate) each year.
The increases are to be held permanently in the rates and following this five year period (i.e. from 2022) the annual increase to general
rates is limited to the estimated 2.5% rate peg. The additional revenue stream raised by the proposed SRV is to be applied to loan
repayments and seed funding for identified community priority projects and services as reflected in this amended Long Term Financial
Plan. Highlights:
 Operating Performance Ratio achieved 2019/20
 Infrastructure Backlog Ratio achieved 2018/19
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$32,088,711 in new capital works and asset renewal
$9,650,618 additional operating expenditure
$11,600,000 new loans
$2,608,766 loan interest
All SRV funds expended by year 10
Loan repayments for years 11-15 to be funded from additional rate revenue retained from SRV
Scenario 3 is PREFERRED for long term financial sustainability.
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6.
KEY PERFORMANCE INDICATORS
The financial indicators have been selected to address operational
liquidity, fiscal responsibility and financial sustainability goals across
short, medium and long-term time frames. The indicators will
highlight projected actual performance, showing in green for the
years it is forecast that they will be achieved, orange for the years
where projected performance is satisfactory, and red for the years
where projected performance is outside its target range.
less any internally or externally restricted cash amounts (for
example water and sewer funds, restricted unspent grants
etc). The result is what cash is available to Council for use in
the day to day operations of the Council.
Council’s target is to maintain a level of $50K (green), a
result greater than $10K will be considered satisfactory
(orange), while a result lower will be classified as
unsatisfactory (red) and will have immediate cash
sustainability issues.
Again the base case scenario indicates that there is room for
improvement in the indicators and the Council will need to develop
further scenarios and strategies to meet the KPI targets.
The KPI results of the base case scenario are presented below.
Operational Liquidity (short term focus)

The Funds result (Budget Result) ensures that Council’s
spending in each year is limited by its revenue and other
sources of funds used to make payments. This remains an
important indicator for short term financial stability.
While Council has an operating deficit, it has been able to
ensure that its funds result has remained balanced (cash
inflows compared to cash outflows). By holding a level of
available funds and planning for at a minimum breakeven
funds results ensures that Council can make payments as
required.
Council’s target is achieving an annual $100k funded surplus
(green) while a balanced budget is considered satisfactory
(orange) and a deficit position is unsatisfactory (red).

The Available Funds (unrestricted cash) assess the
adequacy of working capital and Council’s ability to satisfy
our financial obligations in the short term. This result is
calculated by taking the total cash and investments position
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
The Rates and Annual Charges Outstanding Ratio assesses
the impact of uncollected rates and charges on Council’s
liquidity and the adequacy of recovery efforts. The ratio is
calculated by taking the total outstanding rates and annual
charges (including interest raised) as a percentage of total
rates collectable. The rates collectable amount represents
what was outstanding from the prior year plus the new
amounts levied for the current year.
Council has set the following policy targets for the
outstanding rates and charges ratio of 6% (green), with
satisfactory performance being under 10% (orange), while
any result greater is considered unsatisfactory (red). This
policy target will be reviewed annually as part of the
adoption of the LTFP.

The Unrestricted Current Ratio assesses the adequacy of
working capital and Council’s ability to satisfy obligations in
the short term for the unrestricted activities of Council. The
ratio is calculated by dividing the total current assets (less all
external restrictions) by the total current liabilities (less
specific purpose liabilities).
Council’s target is to maintain levels at a benchmark of 1.5
or better (green), while a ratio of 1 or better will be
considered satisfactory (orange), and any result less than 1
will be considered unsatisfactory (red).
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
The Cash Expense Ratio is another liquidity ratio that
indicates the number of months that Council can continue to
paying for its immediate expenses without additional cash
inflow.
Fiscal Responsibility (elected term focus)

The ratio is calculated by dividing the total cash and cash
equivalents by total expenses (excluding depreciation and
interest costs.
The Adjusted Operating Surplus assesses whether or not
Council generates enough revenue to cover operating costs
(including the cost of replacing assets reflected through
depreciation). The ratio is calculated by taking the operating
result (before capital) as a percentage of operating revenue
(excluding capital).
Council’s target is to maintain levels at a benchmark of 3
months or better (green), while a result of 2 months or better
will be considered satisfactory (orange), and any result less
than 2 months will be considered unsatisfactory (red).
Council’s long term target is a result greater than 0%
(green), a result better than -10% is satisfactory (orange),
while a result outside of these factors will be considered
unsatisfactory (red).
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
The Own Source Operating Revenue Ratio measures fiscal
flexibility or reliance on external funding sources. Council’s
financial flexibility improves the higher the level of its own
source revenue. The ratio is calculated by taking the total
rates, utilities and charges as a percentage of total operating
revenue.
Council’s target is to maintain levels results at 60% (green),
while a result of 40% or better will be considered satisfactory
(orange), and any result below 40% will be considered
unsatisfactory (red).

The Debt Service Ratio demonstrates the cost of servicing
Council’s annual debt obligations as a proportion of available
revenue. The ratio is calculated by taking the total principal
and interest loan payments as a percentage of operating
revenue (excluding capital and specific purpose grants and
contributions).
Council’s target is to maintain levels under the Local
Government benchmark 10% (green), while a ratio of less
than 12% will be considered satisfactory (orange), and any
result exceeding this result will be considered unsatisfactory
(red).
20

Total Debt as a percentage of Operating Revenue indicates
the significance of total borrowings compared to the period’s
income. A council with total debt in excess of its total
revenue would be unable to meet all debt commitments from
revenue should they be required to be repaid all at once.
The ratio is calculated by taking Council’s total outstanding
debt (loans and/or finance leases) as a percentage of total
operating revenue.
Council’s target is 50% or less (green), while between 50%
and 85% is satisfactory (orange) and anything over 85% is
unsatisfactory (red).

service leave). The ratio is calculated by taking the balance
of the ELE internal cash reserve as a percentage of the total
leave liability.

Council’s existing ELE funding policy is as follows:
o Fund 100% of annual leave liability for all employees
o Fund 100% of long service leave liability for employees
over the age of 58. For all other employees fund 33% of
the LSL liability.
Council has set the target ratio to reflect the existing ELE
policy, which equates to maintaining a 70% or greater ratio
(Green), or greater than 50% will be considered satisfactory
(orange), while anything under this will be considered
unsatisfactory (red).
The Funding Adequacy Ratio for Employee Leave
Entitlements (ELE) helps determine if Council is adequately
funding employee leave entitlements (annual leave or long
21

The Cash Assets Ratio is a cash liquidity position indicator
of whether or not Council is in a cash position to be able to
respond to opportunities and unforeseen circumstances. The
ratio is calculated by taking total cash and investments as a
percentage of total operating revenue.
Council’s target is 100% or greater (green), while greater
than 70% is satisfactory (orange) and anything under 70% is
unsatisfactory (red).
Financial Sustainability (long term intergenerational focus)

The Capital Expenditure Ratio indicates the extent to which
a Council is forecasting to expand its asset base with Capital
expenditure spent on both new assets, and replacement and
renewal of existing assets. The ratio is calculated by taking
the total spend on capital projects as a percentage of total
depreciation.
Council’s benchmark is a 110% (green) while a satisfactory
Result is greater than 80% and anything less than this result
is considered unsatisfactory (red).
22

The Buildings and Infrastructure Renewal ratio assesses the
rate at which these assets are being renewed relative to the
rate at which they are being depreciated. The ratio is
calculated by taking the total spend on asset renewal
projects as a percentage of total depreciation for those asset
classes (this includes buildings and infrastructure assets like
roads stormwater etc).
Council’s benchmark is a 100% (green) while a satisfactory
Result is greater than 80% (orange) and anything under
80% is considered unsatisfactory (red).
This ratio is used to encourage Council’s to shift their focus
on asset renewal for existing services rather than focusing
on building new assets or providing new services.
23
24
7.
SENSITIVITY ANALYSIS
LTFP are not designed to predict that actual costs of the future with accuracy but need to be capable of providing a base upon which decisions
can be made and changing environments can be assessed. Sensitivity analysis is a way to determine the impact of various scenarios on
council’s plans and other variables within the plan, similar to a ‘what if’ analysis.
Council has elected to focus on some key income and expense categories to highlight the potential impact across the future years for each fund
(General, Water and Sewer) if there are variations outside those allowed within the base case scenario assumptions. The key types that have
been selected for analysis include:









Ordinary Rates – largest general fund source of revenue which is regulated via rate pegging.
Investment Revenue – general purpose only (this excludes interest on developer contributions on the basis that these funds are
restricted for specific purposes anyway).
Financial Assistance Grant – a key annual funding source for the general fund. The adverse movement in the current year highlights the
importance of this revenue source.
Water User and Annual Charges – largest water fund revenue source regulated and set by Council.
Sewer User and Annual Charges – largest sewer fund revenue source regulated and set by Council.
Employee Costs – largest expenditure type across each fund.
Insurance Costs – a significant expenditure type that has seen increases above CPI in the prior years.
Power and Heating Costs - a significant expenditure type that has seen large increases in recent years.
Loan interest expense – another key expense type that will vary depending on loan interest rates achieved at the time of loan draw
down.
The analysis below shows the impact on the Income Statements net operating result prior to capital, if all categories were to move by 1% in an
adverse manner. In other words each income type was to reduce by 1% and each expense type was to increase by 1%. While there may be
scenarios where some types increase, others decrease and all by varying amounts, the tables below really highlight that the three types that
pose the greatest risk or impact on the Councils financial position if there are significant variations are; the ordinary rates, financial assistance
grant and employee costs.
For the base case scenario Council has assumed that rate pegging (excluding growth) will be 2.5% each year and the SRV Scenario is based
on the proposed 9.5% Special Rate Variation over five years from 2016/17 held permanently in the rates. An alternative scenario is also
included based on a proposed 7.5% Special Rate Variation over five years from 2016/17 held permanently in the rates. Financial Assistance
Grants are not increased by annual CPI in years 1 and 2 due to a 3 year indexation freeze by the Federal Government which is due to expire
after 2016/17. Employee costs increase by an award increase estimated at 2.8% each year. The tables below provide a good guide on the
25
dollar impact on the Council result depending on the variation that could occur. Council will continue to monitor the LTFP each year and refine
the assumptions and indices that are applied within the model.
26
27
APPENDIX A
Original - LTFP Model Consolidated Income Statement and Funded Result
28
29
APPENDIX B
Original - LTFP Model Consolidated Statement of Financial Position
30
31
APPENDIX C
Original - LTFP Model Consolidated Cash Flow Statement
32
33
APPENDIX D
Original - LTFP Model Consolidated Capital Program
34
LTFP Capital Works Program by Project - Base Case
Account Description
New or Proposed
FY2
FY3
FY4
FY5
FY6
FY7
FY8
FY9
FY10
Renew 2015/16 PJ 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025
Original
Budget
Ledger
Community & Cultural
Library Braidwood Capital
Library Bungendore Capital
Fire Control - RFS Capital
Captains Flat RFS Building Contstruction
Future Yrs Dev Contributions Comm
Fac - EB Use only
Total Community & Cultural
Infrastructure & Transport
Bung.Water - Connections & Minor
Works
Bung.Water - Retic.Mains Upgrade
Bungendore water telemetry
upgrade
Bungendore Water – New Reservoir
BWD Water - Connections & Minor
Works
BWD Water Main Replacement
Braidwood water telemetry upgrade
Braidwood Water – Shoalhaven
Pump Station upgrade
CFT Water - Connections & Minor
Works
New
New
Renew
New
$20,270
$20,270
$55,000
$150,000
$21,517
$21,480
$0
$0
$22,197
$22,141
$70,000
$0
$22,384
$22,308
$0
$0
$23,077
$22,981
$0
$0
$23,277
$23,160
$0
$0
$23,985
$23,845
$0
$0
$24,200
$24,037
$0
$0
$24,923
$24,736
$80,000
$0
$25,154
$24,942
$0
$0
$0
$700,000
$0
$0
$650,000
$0
$0
$0
$500,000
$0
$245,540
$742,997
$114,338
$44,692
$696,058
$46,437
$47,830
$48,237
$629,659
$50,096
Renew
$9,692
$0
$0
$0
$0
$0
$0
$0
$0
$0
Renew
Renew
$300,000
$0
$0
$0
$0
$10,000
$0
$0
$250,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
New
Renew
$0
$3,000
$0
$0
$0
$0
$0
$0
$0
$0
$0 $1,100,000
$0
$0
$0
$0
$0
$0
$0
$0
Renew
Renew
Renew
$700,000
$0
$0
$0
$0
$0
$0
$10,000
$200,000
$200,000
$0
$0
$0
$0
$0
$200,000
$0
$0
$0
$0
$0
$200,000
$0
$0
$0
$0
$0
$0
$0
$0
Renew
$1,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
New
35
LTFP Capital Works Program by Project - Base Case
Account Description
Replace membranes _WTP
Captains Flat water telemetry
upgrade
Cap Flat Replace Steel Reservoir
BUN Sewer - Connections & Minor
Works
BUN Sewer - STP Construction
Stage 1
BUN Sewer - SPS Upgrading
Bungendore sewerage telemetry
upgrade
Bungendore Sewer – Mains
upgrades
Solar Installations STP
BWD Sewer - Connections & Minor
Works
Braidwood sewerage telemetry
upgrade
Braidwood Sewer – Mains upgrades
CFT Sewer - Connections & Minor
Works
Captains Flat STP Construction
Captains Flat sewerage telemetry
upgrade
Construct New Braidwood works
Depot
New or Proposed
FY2
FY3
FY4
FY5
FY6
FY7
FY8
FY9
FY10
Renew 2015/16 PJ 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025
Original
Budget
Ledger
Renew
$65,000
$0
$0
$0
$0
$0
$0
$0
$0
$60,000
Renew
$0
$0
$10,000
$0
$0
$0
$0
$0
$0
$0
Renew
Renew
$500,000
$3,705
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
New
$0
$0
$0 $5,000,000
$0
$0
$0
$0
$0
$0
Renew
Renew
$0
$0
$0
$0
$200,000
$10,000
$0
$0
$200,000
$0
$0
$0
$200,000
$0
$0
$0
$200,000
$0
$0
$0
Renew
$0
$0
$0
$100,000
$0
$0
$100,000
$0
$0
$100,000
New
Renew
$400,000
$2,623
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Renew
$0
$0
$10,000
$0
$0
$0
$0
$0
$0
$0
Renew
Renew
$0
$1,512
$200,000
$0
$0
$0
$200,000
$0
$0
$0
$200,000
$0
$0
$0
$200,000
$0
$0
$0
$200,000
$0
Renew
Renew
$0
$0
$750,000
$0
$750,000
$10,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
New
$0
$0 $1,000,000 $1,000,000
$0
$0
$0
$0
$0
$0
36
LTFP Capital Works Program by Project - Base Case
Account Description
New or Proposed
FY2
FY3
FY4
FY5
FY6
FY7
FY8
FY9
FY10
Renew 2015/16 PJ 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025
Original
Budget
Ledger
New
$0 $300,000
$0
$0
$0
$0
$0
$0
$0
$0
Drainage - Majara Street (Gibraltar
to Malbon)
Drainage - Wallace Street (Lascelles Renew
to Flood)
Bungendore Landfill Reinstatement Renew
Macs Reef Landfill Reinstatement
Renew
Braidwood Landfill Reinstatement
Renew
Majors Creek Bin Compound
New
Construction
Araluen Bin Compound Construction New
Nerriga Landfill Reinstatement
Renew
Nerriga Transfer Station
New
Construction
Extra Bin Compounds
New
RR92 Nerriga Road Routine Capital Renew
RR270 Captains Flat Road Routine Renew
Capital
Generic RRRP projects
Renew
Cooma Rd H/Patch and reseal
Renew
RR268 Rehabilitation (S94 RA
Renew
2015/2000)
Cooma Rd rehab - Hawthorn to
Renew
Jinglemoney
Rehabilitation QCC to Stoney Creek Renew
Rehabilitation near Carwoola Church Renew
Local Roads Routine Capital
Renew
Generic Road Rehabilitation projects Renew
$250,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$50,000
$50,000
$0
$80,000
$0
$0
$700,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$80,000
$0
$0
$0
$0
$50,000
$0
$0
$450,000
$0
$400,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$80,000
$57,727
$294,976
$0
$58,236
$211,768
$0
$59,925
$217,907
$0
$61,662
$224,229
$0
$63,451
$230,731
$0
$65,291
$237,423
$0
$67,184
$244,208
$0
$69,133
$251,392
$0
$71,137
$258,683
$0
$73,200
$266,185
$0 $530,000 $530,000
$28,000
$0
$0
$1,500,000 $1,150,000 $1,150,000
$530,000
$0
$0
$530,000
$0
$0
$530,000
$0
$0
$530,000
$0
$0
$530,000
$0
$0
$530,000
$0
$0
$530,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$620,914
$0
$0
$620,914
$0
$0
$0
$0
$0
$0
$0
$0
$0
$590,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,830,033 $1,127,682 $1,160,384 $1,194,035 $1,228,662 $1,264,294 $1,300,958 $1,338,685 $1,377,508 $1,417,455
$0 $584,250 $598,856
$613,828 $629,173 $644,903 $661,025 $677,551 $694,490 $711,852
37
LTFP Capital Works Program by Project - Base Case
Account Description
New or Proposed
FY2
FY3
FY4
FY5
FY6
FY7
FY8
FY9
FY10
Renew 2015/16 PJ 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025
Original
Budget
Ledger
Generic R2R projects
Renew
$0 $620,914 $620,914
$620,914 $620,914 $620,914 $620,914 $620,914 $620,914 $620,914
Tudor Valley Rd. Impts. (S94 Funds) Renew
$35,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
Taylors Creek Road (Windfarm
New
$57,500
$0
$0
$0
$0
$0
$0
$0
$0
$0
Project)
Euradux Rd Resheet
Renew
$40,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
Williamsdale Road – Burra Creek
New
$100,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
Crossing
Lascelles St Reconstruction
Renew
$250,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
Future Yrs Dev Contribution Roads - Renew
$0 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000
EB Use only
Total Infrastructure & Transport
Council Governance & Finance
Desktop/Laptop Upgrades
New
Server/Network Upgrades
New
Printers/Plotters/Photocopiers/Scann New
ers
Lync Capital Project
New
RFID Library Capital
New
Waste Transfer Station IT Capital
New
Intramaps Upgrade Capital
New
Computer & I.T.Services Capital
New
Fleet Capital Transactions
New
Council Offices Bungendore New
Generator
$8,601,596 $7,282,850 $7,997,986 $11,144,668 $4,752,931 $4,762,825 $6,324,289 $5,387,675 $5,252,732 $5,479,606
Total Council Governance &
$2,456,000 $2,832,000 $2,007,500 $2,014,000 $2,825,500 $2,014,000 $2,007,500 $2,032,000 $2,007,500 $2,014,000
$84,000
$156,000
$1,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$7,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$2,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$11,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$32,000
$7,500
$14,000
$25,500
$14,000
$7,500
$32,000
$7,500
$14,000
$2,150,000 $2,800,000 $2,000,000 $2,000,000 $2,800,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000
$45,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
38
LTFP Capital Works Program by Project - Base Case
Account Description
New or Proposed
FY2
FY3
FY4
FY5
FY6
FY7
FY8
FY9
FY10
Renew 2015/16 PJ 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025
Original
Budget
Ledger
Finance
Recreation & Open Space
C/Flat Pool Repairs
Braidwood Rec Ground Construction
Playing fields Bungendore Purchase Land
Royalla Common Amenities Building
Total Recreation & Open Space
Not Applicable
Solar Installations - WTP
Renew
New
New
New
New
Total Not Applicable
Total Capital Program
Capital Funding Sources
User Charges & Fees
Operating Grants & Contributions
Capital Grants & Contributions
Loan Funding
Asset Sales
Transfers from Reserves
Total Capital Funding Sources
Renew
Renew
Renew
Renew
New
Renew
$20,000
$1,050,000
$500,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$202,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,772,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$150,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$150,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$13,225,136 $10,857,847 $10,119,824
$13,203,360
$8,274,489
$6,823,262
$8,379,619
$7,467,912
$7,889,891
$7,543,702
$0
$0
$0
$0
$0
$0
$0
($21,532)
$0
$0
($1,766,531) ($1,052,918) ($1,060,746) ($1,068,805) ($1,077,096) ($1,085,628) ($1,094,306) ($1,103,439) ($1,112,734) ($1,122,299)
($1,453,000)
($368,000)
($368,000)
($368,000)
($710,000) ($1,050,000) ($1,750,000) ($1,000,000)
($500,000)
($500,000)
($500,000)
($500,000)
($368,000)
($368,000)
($368,000)
($368,000)
($368,000)
($368,000)
$0
$0
$0
$0
$0
$0
($500,000)
($500,000)
($500,000)
($500,000)
($500,000)
($500,000)
($6,974,396) ($6,102,112) ($4,632,249) ($8,402,309) ($4,402,425) ($2,902,632) ($4,402,806) ($3,402,979) ($3,783,166) ($3,303,386)
($11,425,459) ($9,073,030) ($8,310,995) ($11,339,114) ($6,347,521) ($4,856,260) ($6,365,112) ($5,374,418) ($5,763,900) ($5,293,685)
39
LTFP Capital Works Program by Project - Base Case
Account Description
Rates Funding Required
New or Proposed
FY2
FY3
FY4
FY5
FY6
FY7
FY8
FY9
FY10
Renew 2015/16 PJ 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025
Original
Budget
Ledger
$1,799,677 $1,784,817 $1,808,829 $1,864,246 $1,926,968 $1,967,002 $2,014,507 $2,093,494 $2,125,991 $2,250,017
40
APPENDIX E
Original - LTFP Model Reserve Balances Summary
41
42
APPENDIX F
Scenario 1 – Base Case “Deteriorate” - LTFP Income Statement and Funded Result General Fund Only
2016/17:
2017/18 – 2020/21:
1.8% rate peg
2.5% rate peg each year
43
2.5% Base Case General Fund Only Income Statement
Account Description
Year1
Year2
Year3
Year4
Year5
Year6
Year7
Year8
Year9
Year10
2015/16
2016/17
2017/18
2018/19
2019/20
2020/21
2021/22
2022/23
2023/24
2024/25
11,045,667
Income
Rates & Annual Charges
8,620,502
8,807,257
9,059,975
9,319,992
9,587,519
9,862,774
10,145,982
10,437,373
10,737,187
Rates & Annual Charges (Pensioner)
(129,500)
(129,500)
(129,500)
(129,500)
(129,500)
(129,500)
(129,500)
(129,500)
(129,500)
(129,500)
Non Rates & Annual Charges
3,649,743
3,917,894
4,177,192
4,422,315
4,647,946
4,885,336
5,135,107
5,317,016
5,505,373
5,700,405
User Charges & Fees
7,204,122
5,418,947
5,642,214
5,798,564
5,960,066
6,126,900
6,299,250
6,477,308
6,661,273
6,851,349
Interest
710,897
848,401
853,512
830,226
831,642
833,093
834,580
836,105
837,668
839,269
Other Revenues
440,738
450,484
460,388
473,796
487,610
501,842
516,505
531,614
547,181
563,222
Operating Grants & Contributions
6,384,062
5,724,197
5,775,111
5,854,898
5,943,609
6,034,641
6,127,953
6,223,908
6,322,271
6,423,209
Capital Grants & Contributions
4,378,796
4,894,794
4,348,931
2,916,160
2,100,748
1,693,553
1,720,064
1,287,407
1,305,790
1,324,548
85,000
85,000
85,000
85,000
85,000
85,000
85,000
85,000
85,000
85,000
31,344,360
30,017,473
30,272,824
29,571,451
29,514,640
29,893,639
30,734,941
31,066,232
31,872,242
32,703,169
9,560,478
9,792,335
10,035,082
10,425,557
10,779,387
11,087,102
11,429,958
11,762,445
12,125,870
12,489,803
728,062
768,826
747,842
776,561
794,492
762,996
728,202
663,868
627,643
544,586
Depreciation & Amortisation
5,494,682
5,637,716
5,766,107
5,882,143
5,983,224
6,085,947
6,171,287
6,263,717
6,357,389
6,458,979
Other Expenses
2,639,114
2,697,053
2,772,660
2,830,273
2,899,664
2,966,880
3,039,969
3,114,980
3,191,965
3,270,975
Materials & Contracts
8,179,412
6,908,150
7,208,228
7,146,061
7,533,120
7,724,610
7,900,641
7,986,327
8,286,784
8,542,133
26,601,747
25,804,081
26,529,920
27,060,595
27,989,888
28,627,535
29,270,058
29,791,337
30,589,651
31,306,476
4,742,613
4,213,392
3,742,904
2,510,855
1,524,752
1,266,104
1,464,883
1,274,895
1,282,592
1,396,693
Gain or Loss on Disposal
Total Income
Expenses
Employee Costs
Borrowing Costs
Total Expenses
Net Operating Result
Capital Expenditure
Employee Costs
Materials & Contracts
Plant Acquisitions
769,068
270,867
274,763
257,626
141,909
146,167
150,552
155,068
159,720
164,512
8,523,681
8,627,938
7,008,172
5,828,841
5,275,954
4,681,013
5,243,814
5,338,712
5,967,461
5,468,211
2,150,000
2,800,000
2,000,000
2,000,000
2,800,000
2,000,000
2,000,000
2,000,000
2,000,000
2,000,000
11,442,749
11,698,805
9,282,935
8,086,467
8,217,863
6,827,180
7,394,366
7,493,780
8,127,181
7,632,723
Loan Funding
(710,000)
(300,000)
(1,000,000)
(1,000,000)
0
0
0
0
0
0
Asset Sales
(500,000)
(500,000)
(500,000)
(500,000)
(500,000)
(500,000)
(500,000)
(500,000)
(500,000)
(500,000)
Total Capital Expenditure
Capital Funding/Movements
Loan Repayments
Transfers from Reserves
Transfers to Reserves
298,363
374,837
400,678
495,008
599,814
639,754
677,070
716,543
757,464
802,902
(6,144,438)
(6,437,987)
(4,655,591)
(3,211,216)
(4,144,048)
(2,664,134)
(3,060,012)
(3,058,923)
(3,637,822)
(3,152,589)
3,555,466
5,793,250
4,973,926
6,005,896
4,674,405
3,776,588
3,438,437
3,629,493
3,340,540
3,424,224
Total Capital Funding/Movements
(1,262,824)
(1,889,223)
250,984
458,197
(267,646)
914,057
746,551
498,159
43,866
705,779
Less: Non Cash
(5,437,312)
(5,579,160)
(5,707,551)
(5,823,587)
(5,924,668)
(6,027,391)
(6,112,731)
(6,178,717)
(6,272,389)
(6,373,979)
Budget Result
Operating Result Before Capital
0
(17,029)
(83,464)
(210,222)
(500,797)
(447,741)
(563,302)
(538,328)
(616,066)
(567,830)
363,817
(681,402)
(606,027)
(405,305)
(575,996)
(427,449)
(255,181)
(12,512)
(23,198)
72,145
44
APPENDIX G
Scenario 1 – Base Case “Deteriorate” - LTFP Financial Position General Fund Only
2016/17:
2017/18 – 2020/21:
1.8% rate peg
2.5% rate peg each year
45
2.5% Base Case Statement of Financial Position for General Fund Only
Account Description
Year1
Year2
Year3
Year4
Year5
Year6
Year7
Year8
Year9
Year10
2015/16
2016/17
2017/18
2018/19
2019/20
2020/21
2021/22
2022/23
2023/24
2024/25
Current Assets
Cash & Cash Equivalents
(13,723,776) (13,706,747) (13,623,283) (13,413,062) (12,912,265) (12,464,524) (11,901,222) (11,362,894) (10,746,827) (10,178,997)
Investments
33,619,072
32,348,698
33,767,447
35,053,418
33,935,680
34,074,149
33,785,257
33,293,733
32,160,624
31,749,840
Receivables
4,458,503
4,458,503
4,458,503
4,458,503
4,458,503
4,458,503
4,458,503
4,458,503
4,458,503
4,458,503
Inventories
2,508
2,508
2,508
2,508
2,508
2,508
2,508
2,508
2,508
2,508
Other Assets
4,800
4,800
4,800
4,800
4,800
4,800
4,800
4,800
4,800
4,800
24,361,106
23,107,762
24,609,974
26,106,167
25,489,226
26,075,437
26,349,847
26,396,651
25,879,608
26,036,654
Infrastructure, Property, Plant & Equip 498,568,706
504,214,794
507,316,623
509,105,947
510,925,586
511,251,818
512,059,896
512,874,960
514,229,752
514,988,496
Total Non Current Assets
498,568,706
504,214,794
507,316,623
509,105,947
510,925,586
511,251,818
512,059,896
512,874,960
514,229,752
514,988,496
Total Assets
522,929,812
527,322,556
531,926,597
535,212,114
536,414,812
537,327,255
538,409,743
539,271,611
540,109,360
541,025,150
5,751,905
5,751,905
5,751,905
5,751,905
5,751,905
5,751,905
5,751,905
5,751,905
5,751,905
5,751,905
374,837
400,678
495,008
599,814
639,754
677,070
716,543
757,464
802,902
280,595
Current Provisions
2,835,923
3,077,403
3,326,127
3,582,313
3,846,185
4,117,973
4,397,914
4,686,254
4,983,244
5,289,143
Total Current Liabilities
8,962,665
9,229,986
9,573,039
9,934,032
10,237,843
10,546,947
10,866,361
11,195,622
11,538,051
11,321,643
3,715
3,715
3,715
3,715
3,715
3,715
3,715
3,715
3,715
3,715
10,831,282
10,730,604
11,235,596
11,635,782
10,996,028
10,318,958
9,602,416
8,844,952
8,042,050
7,761,455
5,093,531
5,106,240
5,119,331
5,132,815
5,146,703
5,161,007
5,175,741
5,190,917
5,206,548
5,222,648
Total Non Current Liabilities
15,928,528
15,840,559
16,358,642
16,772,312
16,146,446
15,483,680
14,781,872
14,039,584
13,252,313
12,987,818
Total Liabilities
24,891,193
25,070,545
25,931,682
26,706,344
26,384,289
26,030,628
25,648,233
25,235,206
24,790,363
24,309,461
498,038,619
502,252,011
505,994,915
508,505,770
510,030,523
511,296,627
512,761,510
514,036,405
515,318,996
516,715,689
Retained Earnings
120,339,590
124,552,982
128,295,886
130,806,741
132,331,493
133,597,597
135,062,480
136,337,375
137,619,967
139,016,660
Revaluation Reserves
377,699,030
377,699,030
377,699,030
377,699,030
377,699,030
377,699,030
377,699,030
377,699,030
377,699,030
377,699,030
Total Equity
498,038,619
502,252,011
505,994,915
508,505,770
510,030,523
511,296,627
512,761,510
514,036,405
515,318,996
516,715,689
Total Equity
498,038,619
502,252,011
505,994,915
508,505,770
510,030,523
511,296,627
512,761,510
514,036,405
515,318,996
516,715,689
Total Current Assets
Non Current Assets
Current Liabilities
Current Payables
Current Borrowings
Non Current Liabilities
Non Current Payables
Non Current Borrowings
Non Current Provisions
Net Assets
Equity
46
APPENDIX H
Scenario 1 – Base Case “Deteriorate” - LTFP Statement of Cash Flow General Fund Only
2016/17:
2017/18 – 2020/21:
1.8% rate peg
2.5% rate peg each year
47
2.5% Base Case Cash Flow Statement for General Fund Only
Account Description
Year1
Year2
Year3
Year4
Year5
Year6
Year7
Year8
Year9
Year10
2015/16
2016/17
2017/18
2018/19
2019/20
2020/21
2021/22
2022/23
2023/24
2024/25
12,140,745
12,595,650
13,107,667
13,612,807
14,105,965
14,618,610
15,151,589
15,624,890
16,113,060
16,616,573
7,204,122
5,418,947
5,642,214
5,798,564
5,960,066
6,126,900
6,299,250
6,477,308
6,661,273
6,851,349
710,897
848,401
853,512
830,226
831,642
833,093
834,580
836,105
837,668
839,269
Cash Flows from Operating Activities
Receipts:
Rates & Annual Charges
User Charges & Fees
Interest
Other Revenues
440,738
450,484
460,388
473,796
487,610
501,842
516,505
531,614
547,181
563,222
Operating Grants & Contributions
6,384,062
5,724,197
5,775,111
5,854,898
5,943,609
6,034,641
6,127,953
6,223,908
6,322,271
6,423,209
Capital Grants & Contributions
4,378,796
4,894,794
4,348,931
2,916,160
2,100,748
1,693,553
1,720,064
1,287,407
1,305,790
1,324,548
Payments:
Employee Costs
(9,560,478)
Borrowing Costs
(9,792,335) (10,035,082) (10,425,557) (10,779,387) (11,087,102) (11,429,958) (11,762,445) (12,125,870) (12,489,803)
(700,432)
(742,382)
(721,398)
(750,117)
(768,048)
(736,552)
(701,758)
(663,868)
(627,643)
(544,586)
Other Expenses
(2,639,114)
(2,697,053)
(2,772,660)
(2,830,273)
(2,899,664)
(2,966,880)
(3,039,969)
(3,114,980)
(3,191,965)
(3,270,975)
Materials & Contracts
Net cash provided (or used in)
operating activities
Cash Flows from Investing Activities
(8,179,412)
(6,908,150)
(7,208,228)
(7,146,061)
(7,533,120)
(7,724,610)
(7,900,641)
(7,986,327)
(8,286,784)
(8,542,133)
10,179,925
9,792,553
9,450,455
8,334,443
7,449,420
7,293,496
7,577,614
7,453,611
7,554,981
7,770,672
500,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
6,144,438
6,437,987
4,655,591
3,211,216
4,144,048
2,664,134
3,060,012
3,058,923
3,637,822
3,152,589
(5,793,250)
(4,973,926)
(6,005,896)
(4,674,405)
(3,776,588)
(3,438,437)
(3,629,493)
(3,340,540)
(3,424,224)
(3,555,466)
(11,442,749) (11,698,805)
(9,282,935)
(8,086,467)
(8,217,863)
(6,827,180)
(7,394,366)
(7,493,780)
(8,127,181)
(7,632,723)
(9,734,744) (10,133,240)
(9,049,657)
(7,350,403)
(7,101,483)
(7,463,847)
(7,275,397)
(7,413,583)
(7,535,600)
Receipts:
Sale of infrastructure, property,
plant and equipment
Sale of Investments
Payments:
Purchase of Investments
Purchase of infrastructure, property,
plant and equipment
Net cash provided (or used in)
investing activities
Cash Flows from Financing Activities
(10,591,561)
Receipts:
Proceeds from Borrowings & Advances
710,000
300,000
1,000,000
1,000,000
0
0
0
0
0
0
(298,363)
(374,837)
(400,678)
(495,008)
(599,814)
(639,754)
(677,070)
(716,543)
(757,464)
(802,902)
411,637
(74,837)
599,322
504,992
(599,814)
(639,754)
(677,070)
(716,543)
(757,464)
(802,902)
0
(17,029)
(83,464)
(210,222)
(500,797)
(447,741)
(563,302)
(538,328)
(616,066)
(567,830)
Payments:
Repayment of Borrowings and Advances
Net cash provided (or used in)
financing activities
Net (increase) / decrease in cash
48
APPENDIX I
Scenario 2 – “Stabilise” - LTFP Income Statement and Funded Result General Fund Only
2016/17:
2017/18 – 2020/21:
6.8% Special Rate Variation (comprising 1.8% rate peg plus 5% special rate)
7.5% Special Rate Variation (comprising the estimated 2.5% rate peg plus 5% special rate) each year
49
7.5% Special Rate Variation Income Statement General Fund Only
Account Description
Year1
Year2
Year3
Year4
Year5
Year6
Year7
Year8
Year9
Year10
2015/16
2016/17
2017/18
2018/19
2019/20
2020/21
2021/22
2022/23
2023/24
2024/25
14,028,657
Income
Rates & Annual Charges
8,620,502
9,241,142
9,971,257
10,758,908
11,608,618
12,525,265
12,885,548
13,256,017
13,636,956
Rates & Annual Charges (Pensi oner)
(129,500)
(129,500)
(129,500)
(129,500)
(129,500)
(129,500)
(129,500)
(129,500)
(129,500)
(129,500)
Non Rates & Annual Charges
3,649,743
3,917,894
4,177,192
4,422,315
4,647,946
4,885,336
5,135,107
5,317,016
5,505,373
5,700,405
User Charges & Fees
7,204,122
5,418,947
5,642,214
5,798,564
5,960,066
6,126,900
6,299,250
6,477,308
6,661,273
6,851,349
Interest
710,897
848,401
853,512
830,226
831,642
833,093
834,580
836,105
837,668
839,269
Other Revenues
440,738
450,484
460,388
473,796
487,610
501,842
516,505
531,614
547,181
563,222
Operati ng Grants & Contri buti ons
6,384,062
7,151,778
5,775,111
5,854,898
5,943,609
6,034,641
6,127,953
6,223,908
6,322,271
6,423,209
Capi tal Grants & Contri buti ons
4,378,796
3,467,213
5,048,931
3,316,160
3,700,748
1,813,553
1,720,064
1,287,407
1,305,790
1,324,548
85,000
85,000
85,000
85,000
85,000
85,000
85,000
85,000
85,000
85,000
31,344,360
30,451,358
31,884,106
31,410,366
33,135,739
32,676,131
33,474,508
33,884,875
34,772,011
35,686,158
9,560,478
10,005,735
10,573,722
10,979,279
11,348,614
11,672,268
12,031,509
12,380,840
12,761,580
13,143,312
728,062
768,826
747,842
834,799
886,715
922,131
920,883
836,768
779,753
674,847
Depreci ati on & Amorti sati on
5,494,682
5,637,716
5,769,484
5,952,458
6,100,399
6,308,872
6,475,562
6,600,126
6,726,736
6,862,088
Other Expenses
2,639,114
2,709,553
2,785,473
2,843,406
2,913,125
2,980,678
3,054,112
3,129,477
3,206,824
3,286,205
Materi al s & Contracts
8,179,412
8,405,731
7,279,978
7,219,605
7,608,503
8,041,878
7,979,841
8,067,507
8,369,994
8,627,423
26,601,747
27,527,562
27,156,501
27,829,546
28,857,357
29,925,827
30,461,908
31,014,718
31,844,887
32,593,876
4,742,613
2,923,797
4,727,605
3,580,820
4,278,383
2,750,304
3,012,600
2,870,158
2,927,124
3,092,283
Gai n or Loss on Di sposal
Total Income
Expenses
Empl oyee Costs
Borrowi ng Costs
Total Expenses
Net Operating Result
Capital Expenditure
Empl oyee Costs
769,068
270,867
274,763
257,626
141,909
146,167
150,552
155,068
159,720
164,512
Materi al s & Contracts
8,523,681
7,200,357
7,008,172
5,828,841
5,275,954
4,681,013
5,243,814
5,338,712
5,967,461
5,468,211
Pl ant Acqui si ti ons
2,150,000
2,800,000
2,000,000
2,000,000
2,800,000
2,000,000
2,000,000
2,000,000
2,000,000
2,000,000
0
135,100
2,677,478
1,874,416
4,230,027
3,254,027
1,285,380
1,317,515
1,350,453
1,384,213
11,442,749
10,406,324
11,960,413
9,960,883
12,447,890
10,081,207
8,679,746
8,811,295
9,477,634
9,016,936
Loan Fundi ng
(710,000)
(300,000)
(2,200,000)
(1,800,000)
(1,550,000)
(1,000,000)
0
0
0
0
Asset Sal es
(500,000)
(500,000)
(500,000)
(500,000)
(500,000)
(500,000)
(500,000)
(500,000)
(500,000)
(500,000)
SRV Capi tal
Total Capital Expenditure
Capital Funding/Movements
Loan Repayments
Transfers from Reserves
Transfers to Reserves
298,363
374,837
400,678
589,993
762,962
933,903
1,065,359
1,124,613
1,186,323
1,253,610
(6,144,438)
(6,437,987)
(5,155,591)
(3,261,216)
(4,144,048)
(3,664,134)
(3,060,012)
(3,058,923)
(3,637,822)
(3,152,589)
5,793,250
4,973,926
6,005,896
4,674,405
3,776,588
3,438,437
3,629,493
3,340,540
3,424,224
3,555,466
1,638
4,899
7,065
1,504
115,715
112,530
128,061
143,932
160,150
SRV Reserve Movement
Total Capital Funding/Movements
(1,262,824)
(1,887,586)
(1,444,117)
(289,752)
(1,652,994)
(676,080)
1,247,370
1,034,291
616,657
1,316,637
Less: Non Cash
(5,437,312)
(5,579,160)
(5,710,928)
(5,893,902)
(6,041,843)
(6,250,316)
(6,417,006)
(6,515,126)
(6,641,736)
(6,777,088)
0
(15,781)
(77,762)
(196,409)
(474,671)
(404,507)
(497,509)
(460,302)
(525,431)
(464,203)
363,817
(543,416)
(321,326)
264,660
577,635
936,751
1,292,536
1,582,751
1,621,334
1,767,735
Budget Result
Operati ng Resul t Before Capi tal
50
APPENDIX J
Scenario 2 – “Stabilise” - LTFP Statement of Financial Position General Fund Only
2016/17:
2017/18 – 2020/21:
6.8% Special Rate Variation (comprising 1.8% rate peg plus 5% special rate)
7.5% Special Rate Variation (comprising the estimated 2.5% rate peg plus 5% special rate) each year
51
7.5% Special Rate Variation Statement of Financial Position General Fund Only
Account Description
Year1
Year2
Year3
Year4
Year5
Year6
Year7
Year8
Year9
Year10
2015/16
2016/17
2017/18
2018/19
2019/20
2020/21
2021/22
2022/23
2023/24
2024/25
Current Assets
Cash & Cash Equivalents
(13,723,776) (13,707,995) (13,630,232) (13,433,823) (12,959,152) (12,554,645) (12,057,136) (11,596,833) (11,071,403) (10,607,200)
Investments
33,619,072
32,352,831
33,287,882
34,558,544
33,494,561
32,835,213
32,790,437
32,583,026
31,775,119
31,731,740
Receivables
4,458,503
4,458,503
4,458,503
4,458,503
4,458,503
4,458,503
4,458,503
4,458,503
4,458,503
4,458,503
Inventories
2,508
2,508
2,508
2,508
2,508
2,508
2,508
2,508
2,508
2,508
Other Assets
4,800
4,800
4,800
4,800
4,800
4,800
4,800
4,800
4,800
4,800
24,361,106
23,110,647
24,123,460
25,590,531
25,001,220
24,746,379
25,199,112
25,452,003
25,169,527
25,590,351
Total Current Assets
Non Current Assets
Infrastructure, Property, Plant & Equip 498,568,706 502,922,313 508,698,242 512,291,668 518,224,159 521,581,494 523,370,677 525,166,846 527,502,744 529,242,592
Total Non Current Assets
498,568,706 502,922,313 508,698,242 512,291,668 518,224,159 521,581,494 523,370,677 525,166,846 527,502,744 529,242,592
Total Assets
522,929,812 526,032,960 532,821,702 537,882,199 543,225,379 546,327,873 548,569,789 550,618,849 552,672,271 554,832,943
Current Liabilities
Current Payables
5,751,905
5,751,905
5,751,905
5,751,905
5,751,905
5,751,905
5,751,905
5,751,905
5,751,905
374,837
400,678
589,993
762,962
933,903
1,065,359
1,124,613
1,186,323
1,253,610
754,264
Current Provisions
2,835,923
3,077,403
3,326,127
3,582,313
3,846,185
4,117,973
4,397,914
4,686,254
4,983,244
5,289,143
Total Current Liabilities
8,962,665
9,229,986
9,668,025
10,097,180
10,531,992
10,935,236
11,274,432
11,624,482
11,988,759
11,795,313
Current Borrowings
5,751,905
Non Current Liabilities
Non Current Payables
Non Current Borrowings
Non Current Provisions
3,715
3,715
3,715
3,715
3,715
3,715
3,715
3,715
3,715
3,715
10,831,282
10,730,604
12,340,611
13,377,649
13,993,746
13,928,387
12,803,774
11,617,451
10,363,841
9,609,576
5,093,531
5,106,240
5,119,331
5,132,815
5,146,703
5,161,007
5,175,741
5,190,917
5,206,548
5,222,648
Total Non Current Liabilities
15,928,528
15,840,559
17,463,657
18,514,178
19,144,163
19,093,109
17,983,230
16,812,083
15,574,103
14,835,939
Total Liabilities
24,891,193
25,070,545
27,131,682
28,611,358
29,676,156
30,028,345
29,257,662
28,436,564
27,562,862
26,631,251
Net Assets
498,038,619 500,962,416 505,690,021 509,270,841 513,549,223 516,299,527 519,312,127 522,182,285 525,109,409 528,201,692
Equity
Retained Earnings
120,339,590 123,263,386 127,990,991 131,571,811 135,850,194 138,600,498 141,613,098 144,483,255 147,410,379 150,502,662
Revaluation Reserves
377,699,030 377,699,030 377,699,030 377,699,030 377,699,030 377,699,030 377,699,030 377,699,030 377,699,030 377,699,030
Total Equity
498,038,619 500,962,416 505,690,021 509,270,841 513,549,223 516,299,527 519,312,127 522,182,285 525,109,409 528,201,692
Total Equity
498,038,619 500,962,416 505,690,021 509,270,841 513,549,223 516,299,527 519,312,127 522,182,285 525,109,409 528,201,692
52
APPENDIX K
Scenario 2 –“Stabilise”- LTFP Statement of Cash Flows General Fund Only
2016/17:
2017/18 – 2020/21:
6.8% Special Rate Variation (comprising 1.8% rate peg plus 5% special rate)
7.5% Special Rate Variation (comprising the estimated 2.5% rate peg plus 5% special rate) each year
53
7.5% Special Rate Variation Cashflow Statement General Fund Only
Account Description
Year1
Year2
Year3
Year4
Year5
Year6
Year7
Year8
Year9
Year10
2015/16
2016/17
2017/18
2018/19
2019/20
2020/21
2021/22
2022/23
2023/24
2024/25
12,140,745
13,029,536
14,018,949
15,051,722
16,127,064
17,281,101
17,891,155
18,443,533
19,012,829
19,599,562
7,204,122
5,418,947
5,642,214
5,798,564
5,960,066
6,126,900
6,299,250
6,477,308
6,661,273
6,851,349
710,897
848,401
853,512
830,226
831,642
833,093
834,580
836,105
837,668
839,269
Cash Flows from Operating Activities
Receipts:
Rates & Annual Charges
User Charges & Fees
Interest
Other Revenues
440,738
450,484
460,388
473,796
487,610
501,842
516,505
531,614
547,181
563,222
Operating Grants & Contributions
6,384,062
7,151,778
5,775,111
5,854,898
5,943,609
6,034,641
6,127,953
6,223,908
6,322,271
6,423,209
Capital Grants & Contributions
4,378,796
3,467,213
5,048,931
3,316,160
3,700,748
1,813,553
1,720,064
1,287,407
1,305,790
1,324,548
Payments:
Employee Costs
(9,560,478) (10,005,735) (10,573,722) (10,979,279) (11,348,614) (11,672,268) (12,031,509) (12,380,840) (12,761,580) (13,143,312)
Borrowing Costs
(700,432)
(742,382)
(721,398)
(808,355)
(860,271)
(895,687)
(894,439)
(836,768)
(779,753)
(674,847)
Other Expenses
(2,639,114)
(2,709,553)
(2,785,473)
(2,843,406)
(2,913,125)
(2,980,678)
(3,054,112)
(3,129,477)
(3,206,824)
(3,286,205)
Materials & Contracts
Net cash provided (or used in)
operating activities
Cash Flows from Investing Activities
(8,179,412)
(8,405,731)
(7,279,978)
(7,219,605)
(7,608,503)
(8,041,878)
(7,979,841)
(8,067,507)
(8,369,994)
(8,627,423)
10,179,925
8,502,957
10,438,533
9,474,722
10,320,225
9,000,620
9,429,606
9,385,284
9,568,860
9,869,370
Receipts:
Sale of infrastructure, property,
plant and equipment
Sale of Investments
500,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
6,144,438
6,437,987
5,155,591
3,261,216
4,144,048
3,664,134
3,060,012
3,058,923
3,637,822
3,152,589
(5,793,250)
(4,975,564)
(6,010,795)
(4,681,470)
(3,778,092)
(3,554,152)
(3,742,023)
(3,468,601)
(3,568,156)
(3,715,616)
(9,960,883) (12,447,890) (10,081,207)
(8,679,746)
(8,811,295)
(9,477,634)
(9,016,936)
(9,471,224)
(8,861,757)
(8,720,973)
(8,907,968)
(9,079,963)
Payments:
Purchase of Investments
Purchase of infrastructure, property,
plant and equipment
Net cash provided (or used in)
investing activities
Cash Flows from Financing Activities
(11,442,749) (10,406,324) (11,960,413)
(10,591,561)
(8,443,901) (12,315,617) (10,881,138) (11,581,934)
Receipts:
Proceeds from Borrowings & Advances
710,000
300,000
2,200,000
1,800,000
1,550,000
1,000,000
0
0
0
0
(298,363)
(374,837)
(400,678)
(589,993)
(762,962)
(933,903)
(1,065,359)
(1,124,613)
(1,186,323)
(1,253,610)
411,637
(74,837)
1,799,322
1,210,007
787,038
66,097
(1,065,359)
(1,124,613)
(1,186,323)
(1,253,610)
0
(15,781)
(77,762)
(196,409)
(474,671)
(404,507)
(497,509)
(460,302)
(525,431)
(464,203)
Payments:
Repayment of Borrowings and Advances
Net cash provided (or used in)
financing activities
Net (increase) / decrease in cash
APPENDIX L
54
Scenario 2 – “Stabilise” - LTFP SRV Program of Works
2016/17:
2017/18 – 2020/21:
6.8% Special Rate Variation (comprising 1.8% rate peg plus 5% special rate)
7.5% Special Rate Variation (comprising the estimated 2.5% rate peg plus 5% special rate) each year
55
SRV Funding
Special Rate Variation Works Program
Project
1
2
3
4
4
7
12
17
432,638
Funds
Available
905,580 1,425,103 1,994,973 2,619,258 2,673,774 2,740,618 2,809,134 2,879,362 2,951,346
Funds
Available
Funds
Available
Funds
Ins ufficien
Funds
Available
t Funds Available
Available
Funds
Available
Funds
Available
Funds
Available
Funds
Available
1,638
4,899
7,065
1,504 (7,585) 112,530 128,061 143,932 160,150 176,718
Year1
Year2
Year3
Year4
Year5
Year6
Year7
Year8
Year9
Year10
2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26
Program
Operational Program
Total
7,993,567
FAG Revenue Recovery
Community Grants Program
Community Facilities Program
Parks / Reserves / Streetscapes
Parks / Reserves / Streetscapes
Governance Compliance
ByPass Study
Braidwood Depot - Study New 10% Upgrade
20% Renewal 70%
1,292,599
140,045
1,360,363
1,476,650
784,247
1,511,515
240,000
123,300
83,400
12,500
0
130,000
70,000
0
0
0
120,000
12,813
135,000
133,640
71,750
150,000
0
0
123,360
13,133
138,780
137,382
73,544
154,200
0
0
126,814
13,461
142,666
141,229
75,383
158,518
0
0
130,365
13,798
146,661
145,183
77,268
162,957
240,000
123,300
134,015
14,143
150,768
149,248
79,200
167,520
0
0
137,767
14,497
154,990
153,427
81,180
172,211
0
0
141,624
14,859
159,330
157,723
83,210
177,033
0
0
145,589
15,230
163,791
162,139
85,290
181,990
0
0
149,665
15,611
168,377
166,679
87,422
187,086
0
0
315,685
197,974
350,967
200,223
0
0
0
0
0
0
0
0
0
0
0
58,237
0
0
0
0
53,398
38,825
0
0
0
48,313
35,599
75,223
0
0
42,968
32,209
68,973
48,531
0
37,351
28,645
62,404
44,499
0
31,448
24,901
55,501
40,261
0
25,244
20,965
48,245
35,807
0
18,724
16,829
40,620
31,126
0
Loan Interest
Loan_FY1
Loan_FY2
Loan_FY3
Loan_FY4
Loan_FY5
56
Project
Program
Capital - Renewal
Total
Over 10yrs
18,927,427
Year1
2016/17
Year2
2017/18
Year3
2018/19
Year4
2019/20
Year5
2020/21
Year6
2021/22
Year7
2022/23
Year8
2023/24
Year9
2024/25
Year10
2025/26
2
Community Grants Program
140,045
12,500
12,813
13,133
13,461
13,798
14,143
14,497
14,859
15,230
15,611
3
Community Facilities Program
589,304
52,600
53,915
55,263
56,645
58,061
59,513
61,001
62,526
64,089
65,691
8
Road Renewal Program 1 - 50% New 50%
Renewal
691,841
0
69,500
71,238
73,019
74,844
76,715
78,633
80,599
82,614
84,679
9
Road Renewal Program 2 - 40% Upgrade 60%
Renewal
1,485,137
0
0
170,000
174,250
178,606
183,071
187,648
192,339
197,147
202,076
10
Braidwood Recreation Ground - 40% Upgrade
60% Renewal
Annual Drainage Construction Program - 90%
Upgrade 10% Renewal
Parks / Reserves / Streetscapes
540,000
0
0
540,000
0
0
0
0
0
0
0
150,949
0
0
0
20,000
20,500
21,013
21,538
22,076
22,628
23,194
0
0
0
0
0
0
0
0
0
0
Flood Plain Management - New 20% Upgrade
60% Renewal 20%
Road Renewal Program 3 - 25% Upgrade 75%
Renewal
Road Renewal Program 4 - 50% Upgrade 50%
Renewal
Bungendore Pool
480,000
0
0
0
480,000
0
0
0
0
0
0
1,267,970
0
0
0
168,000
172,200
176,505
180,918
185,441
190,077
194,829
469,501
0
0
0
0
73,500
75,338
77,221
79,152
81,131
83,159
1,500,000
0
0
0
0
1,500,000
0
0
0
0
0
13
14
15
18
19
20
57
Project
Program
Year1
2016/17
Total
Over 10yrs
Year2
2017/18
Year3
2018/19
Year4
2019/20
Year5
2020/21
Year6
2021/22
Year7
2022/23
Year8
2023/24
Year9
2024/25
Year10
2025/26
Capital - New
5
New Footpath Program
784,247
70,000
71,750
73,544
75,383
77,268
79,200
81,180
83,210
85,290
87,422
6
New Bungendore Recreation Grounds
Development
Road Renewal Program 1 - 50% New 50%
Renewal
2,400,000
0
2,400,000
0
0
0
0
0
0
0
0
691,841
0
69,500
71,238
73,019
74,844
76,715
78,633
80,599
82,614
84,679
9
Road Renewal Program 2 - 40% Upgrade 60%
Renewal
1,485,137
0
0
170,000
174,250
178,606
183,071
187,648
192,339
197,147
202,076
10
Braidwood Recreation Ground - 40% Upgrade
60% Renewal
Royalla Reserve
360,000
0
0
360,000
0
0
0
0
0
0
0
350,000
0
0
350,000
0
0
0
0
0
0
0
13
Annual Drainage Construction Program - 90%
Upgrade 10% Renewal
1,358,540
0
0
0
180,000
184,500
189,113
193,841
198,687
203,654
208,745
14
Parks / Reserves / Streetscapes
0
0
0
0
0
0
0
0
0
0
0
15
Flood Plain Management - New 20% Upgrade
60% Renewal 20%
1,920,000
0
0
0
1,920,000
0
0
0
0
0
0
16
Land Purchase
750,000
0
0
0
750,000
0
0
0
0
0
0
17
Braidwood Depot - New 10% Upgrade 20%
Renewal 70%
Road Renewal Program 3 - 25% Upgrade 75%
Renewal
Road Renewal Program 4 - 50% Upgrade 50%
Renewal
Bungendore Pool
0
0
0
0
0
0
0
0
0
0
0
543,414
0
0
0
72,000
73,800
75,645
77,536
79,474
81,461
83,498
469,501
0
0
0
0
73,500
75,338
77,221
79,152
81,131
83,159
500,000
0
0
0
0
500,000
0
0
0
0
0
8
11
18
19
20
58
Project
Program
Total
Over 10yrs
Year1
2016/17
Year2
2017/18
Year3
2018/19
Year4
2019/20
Year5
2020/21
Year6
2021/22
Year7
2022/23
Year8
2023/24
Year9
2024/25
Year10
2025/26
Loan Principal Repayments
Loan_FY1
910,098
0
0
94,985
99,824
104,910
110,255
115,872
121,775
127,979
Loan_FY2
517,066
0
0
0
63,324
66,550
69,940
73,503
77,248
81,183
85,319
Loan_FY3
836,510
0
0
0
0
122,689
128,940
135,509
142,412
149,667
157,292
438,205
0
0
0
0
0
79,154
83,187
87,425
91,879
96,560
(800,000) (1,550,000) (1,000,000)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Loan_FY4
Loan Funding
Section 94 Contributions Reserve
Grants/Contribution
(4,550,000)
- (1,200,000)
(1,550,000)
-
(500,000)
(2,820,000)
-
(700,000)
(50,000)
- (1,000,000)
(400,000) (1,600,000)
(120,000)
134,498
59
APPENDIX M
Scenario 2 – “Stabilise” – Fit for the Future Ratios
2016/17:
2017/18 – 2020/21:
6.8% Special Rate Variation (comprising 1.8% rate peg plus 5% special rate)
7.5% Special Rate Variation (comprising the estimated 2.5% rate peg plus 5% special rate) each year
60
FFTF Ratios - Base Case (3 year averages)
2015/16
2016/17
2017/18
2018/19
2019/20
2020/21
2021/22
2022/23
2023/24
2024/25
2015/16
2016/17
2017/18
2018/19
2019/20
2020/21
2021/22
2022/23
2023/24
2024/25
Operating Performance Ratio
Own Source Revenue Ratio
Building and Infrastrtucture
Asset Renewal Ratio
Infrastructure Backlog Ratio
Asset Maintenance Ratio
Debt Service Ratio
Real Operating Expenditure per
Capita
FFTF Ratios - SV (3 yr averages)
Operating Performance Ratio
Own Source Revenue Ratio
Building and Infrastrtucture
Asset Renewal Ratio
Infrastructure Backlog Ratio
Asset Maintenance Ratio
Debt Service Ratio
Real Operating Expenditure per
Capita
Must meet within 5
years
Meet or improve within
5 years
Meet within 5 years
Improvement within 5
years net of IPR
supported service
improvements
61
APPENDIX N
Scenario 3 – “Improve” – LTFP Income Statement and Funded Result General Fund Only
2016/17:
2017/18 – 2020/21:
8.8% Special Rate Variation (comprising 1.8% rate peg plus 7% special rate)
9.5% Special Rate Variation (comprising the estimated 2.5% rate peg plus 7% special rate) each year
62
9.5% Special Rate Variation General Fund Only Income Statement
Account Description
Year1
Year2
Year3
Year4
Year5
Year6
Year7
Year8
Year9
Year10
2015/16
2016/17
2017/18
2018/19
2019/20
2020/21
2021/22
2022/23
2023/24
2024/25
15,384,959
Income
Rates & Annual Charges
8,620,502
9,414,197
10,346,970
11,372,007
12,498,420
13,736,219
14,131,334
14,537,620
14,955,389
Rates & Annual Charges (Pensi oner)
(129,500)
(129,500)
(129,500)
(129,500)
(129,500)
(129,500)
(129,500)
(129,500)
(129,500)
(129,500)
Non Rates & Annual Charges
3,649,743
3,917,894
4,177,192
4,422,315
4,647,946
4,885,336
5,135,107
5,317,016
5,505,373
5,700,405
User Charges & Fees
7,204,122
5,418,947
5,642,214
5,798,564
5,960,066
6,126,900
6,299,250
6,477,308
6,661,273
6,851,349
Interest
710,897
848,401
853,512
830,226
831,642
833,093
834,580
836,105
837,668
839,269
Other Revenues
440,738
450,484
460,388
473,796
487,610
501,842
516,505
531,614
547,181
563,222
Operati ng Grants & Contri buti ons
6,384,062
5,724,197
5,775,111
5,854,898
5,943,609
6,034,641
6,127,953
6,223,908
6,322,271
6,423,209
Capi tal Grants & Contri buti ons
4,378,796
4,894,794
5,048,931
3,316,160
3,700,748
2,693,553
1,720,064
1,287,407
1,305,790
1,324,548
85,000
85,000
85,000
85,000
85,000
85,000
85,000
85,000
85,000
85,000
31,344,360
30,624,413
32,259,819
32,023,466
34,025,541
34,767,084
34,720,294
35,166,478
36,090,444
37,042,461
9,560,478
10,135,735
10,572,362
10,977,881
11,347,177
11,670,790
12,029,989
12,379,277
12,759,973
13,141,660
728,062
768,826
747,842
834,799
886,715
1,167,213
1,242,664
1,129,082
1,041,098
903,647
Depreci ati on & Amorti sati on
5,494,682
5,637,716
5,770,232
5,959,179
6,115,994
6,456,863
6,715,154
6,856,734
7,000,786
7,154,014
Other Expenses
2,639,114
2,722,053
2,798,285
2,856,539
2,926,587
2,994,476
3,068,255
3,143,973
3,221,683
3,301,436
Materi al s & Contracts
8,179,412
6,978,150
7,279,978
7,439,705
7,608,503
7,801,878
7,979,841
8,067,507
8,369,994
8,627,423
26,601,747
26,242,481
27,168,701
28,068,103
28,884,977
30,091,220
31,035,904
31,576,572
32,393,534
33,128,181
4,742,613
4,381,933
5,091,119
3,955,364
5,140,565
4,675,864
3,684,390
3,589,906
3,696,909
3,914,280
Gai n or Loss on Di sposal
Total Income
Expenses
Empl oyee Costs
Borrowi ng Costs
Total Expenses
Net Operating Result
Capital Expenditure
Empl oyee Costs
769,068
270,867
274,763
257,626
141,909
146,167
150,552
155,068
159,720
164,512
Materi al s & Contracts
8,523,681
8,627,938
7,008,172
5,828,841
5,275,954
4,681,013
5,243,814
5,338,712
5,967,461
5,468,211
Pl ant Acqui si ti ons
2,150,000
2,800,000
2,000,000
2,000,000
2,800,000
2,000,000
2,000,000
2,000,000
2,000,000
2,000,000
0
165,000
2,916,425
2,229,336
9,525,821
6,918,069
1,966,022
2,015,171
2,065,553
2,117,192
11,442,749
11,863,805
12,199,360
10,315,803
17,743,684
13,745,249
9,360,388
9,508,951
10,192,734
9,749,915
Loan Fundi ng
(710,000)
(300,000)
(2,200,000)
(1,800,000)
(6,600,000)
(3,000,000)
0
0
0
0
Asset Sal es
(500,000)
(500,000)
(500,000)
(500,000)
(500,000)
(500,000)
(500,000)
(500,000)
(500,000)
(500,000)
SRV Capi tal
Total Capital Expenditure
Capital Funding/Movements
Loan Repayments
Transfers from Reserves
Transfers to Reserves
298,363
374,837
400,678
589,993
762,962
1,333,633
1,643,762
1,732,483
1,825,161
1,924,994
(6,144,438)
(6,437,987)
(5,155,591)
(3,261,216)
(4,144,048)
(3,664,134)
(3,060,012)
(3,058,923)
(3,637,822)
(3,152,589)
5,793,250
4,973,926
6,005,896
4,674,405
3,776,588
3,438,437
3,629,493
3,340,540
3,424,224
3,555,466
2,293
128,891
29,120
624,187
108,683
(262,485)
(233,817)
(204,487)
(174,472)
SRV Reserve Movement
Total Capital Funding/Movements
(1,262,824)
(1,886,931)
(1,320,125)
(267,698)
(6,080,311)
(2,283,381)
1,450,758
1,280,283
907,077
1,653,399
Less: Non Cash
(5,437,312)
(5,579,160)
(5,711,676)
(5,900,623)
(6,057,438)
(6,398,307)
(6,656,598)
(6,771,734)
(6,915,786)
(7,069,014)
0
(15,781)
(76,440)
(192,119)
(465,371)
(387,697)
(470,157)
(427,594)
(487,116)
(420,020)
363,817
(512,861)
42,188
639,204
1,439,817
1,982,311
1,964,326
2,302,499
2,391,119
2,589,732
Budget Result
Operati ng Resul t Before Capi tal
63
APPENDIX O
Scenario 3 – “Improve” – LTFP Statement of Financial Position General Fund Only
2016/17:
2017/18 – 2020/21:
8.8% Special Rate Variation (comprising 1.8% rate peg plus 7% special rate)
9.5% Special Rate Variation (comprising the estimated 2.5% rate peg plus 7% special rate) each year
64
9.5% Special Rate Variation Statement of Financial Position General Fund Only
Account Description
Year1
Year2
Year3
Year4
Year5
Year6
Year7
Year8
Year9
Year10
2015/16
2016/17
2017/18
2018/19
2019/20
2020/21
2021/22
2022/23
2023/24
2024/25
Current Assets
Cash & Cash Equivalents
(13,723,776) (13,707,995) (13,631,555) (13,439,436) (12,974,065) (12,586,368) (12,116,211) (11,688,617) (11,201,501) (10,781,481)
Investments
33,619,072
32,353,486
33,415,174
34,716,471
34,293,772
33,661,013
33,295,925
32,792,052
31,712,357
31,422,722
Receivables
4,458,503
4,458,503
4,458,503
4,458,503
4,458,503
4,458,503
4,458,503
4,458,503
4,458,503
4,458,503
Inventories
2,508
2,508
2,508
2,508
2,508
2,508
2,508
2,508
2,508
2,508
Other Assets
4,800
4,800
4,800
4,800
4,800
4,800
4,800
4,800
4,800
4,800
24,361,106
23,111,302
24,249,430
25,742,846
25,785,518
25,540,455
25,645,525
25,569,247
24,976,667
25,107,052
Total Current Assets
Non Current Assets
Infrastructure, Property, Plant & Equip 498,568,706 504,379,794 510,393,922 514,335,546 525,548,237 532,421,623 534,651,856 536,889,073 539,666,021 541,846,922
Total Non Current Assets
498,568,706 504,379,794 510,393,922 514,335,546 525,548,237 532,421,623 534,651,856 536,889,073 539,666,021 541,846,922
Total Assets
522,929,812 527,491,097 534,643,352 540,078,392 551,333,754 557,962,078 560,297,381 562,458,320 564,642,689 566,953,974
Current Liabilities
Current Payables
5,751,905
5,751,905
5,751,905
5,751,905
5,751,905
5,751,905
5,751,905
5,751,905
5,751,905
5,751,905
374,837
400,678
589,993
762,962
1,333,633
1,643,762
1,732,483
1,825,161
1,924,994
1,459,852
Current Provisions
2,835,923
3,077,403
3,326,127
3,582,313
3,846,185
4,117,973
4,397,914
4,686,254
4,983,244
5,289,143
Total Current Liabilities
8,962,665
9,229,986
9,668,025
10,097,180
10,931,722
11,513,639
11,882,302
12,263,320
12,660,143
12,500,900
3,715
3,715
3,715
3,715
3,715
3,715
3,715
3,715
3,715
3,715
10,831,282
10,730,604
12,340,611
13,377,649
18,644,016
20,000,254
18,267,771
16,442,610
14,517,615
13,057,763
5,093,531
5,106,240
5,119,331
5,132,815
5,146,703
5,161,007
5,175,741
5,190,917
5,206,548
5,222,648
Total Non Current Liabilities
15,928,528
15,840,559
17,463,657
18,514,178
23,794,434
25,164,976
23,447,227
21,637,241
19,727,878
18,284,125
Total Liabilities
24,891,193
25,070,545
27,131,682
28,611,358
34,726,156
36,678,616
35,329,529
33,900,561
32,388,021
30,785,026
Current Borrowings
Non Current Liabilities
Non Current Payables
Non Current Borrowings
Non Current Provisions
Net Assets
498,038,619 502,420,552 507,511,670 511,467,034 516,607,599 521,283,463 524,967,853 528,557,758 532,254,668 536,168,948
Equity
Retained Earnings
120,339,590 124,721,522 129,812,641 133,768,004 138,908,569 143,584,433 147,268,823 150,858,729 154,555,638 158,469,918
Revaluation Reserves
377,699,030 377,699,030 377,699,030 377,699,030 377,699,030 377,699,030 377,699,030 377,699,030 377,699,030 377,699,030
Total Equity
498,038,619 502,420,552 507,511,670 511,467,034 516,607,599 521,283,463 524,967,853 528,557,758 532,254,668 536,168,948
Total Equity
498,038,619 502,420,552 507,511,670 511,467,034 516,607,599 521,283,463 524,967,853 528,557,758 532,254,668 536,168,948
65
APPENDIX P
Scenario 3 – “Improve” – LTFP Statement of Cash Flows General Fund Only
2016/17:
2017/18 – 2020/21:
8.8% Special Rate Variation (comprising 1.8% rate peg plus 7% special rate)
9.5% Special Rate Variation (comprising the estimated 2.5% rate peg plus 7% special rate) each year
66
9.5% Special Rate Variation Cashflow Statement General Fund Only
Account Description
Year1
Year2
Year3
Year4
Year5
Year6
Year7
Year8
Year9
Year10
2015/16
2016/17
2017/18
2018/19
2019/20
2020/21
2021/22
2022/23
2023/24
2024/25
12,140,745
13,202,591
14,394,663
15,664,822
17,016,866
18,492,055
19,136,941
19,725,136
20,331,261
20,955,865
7,204,122
5,418,947
5,642,214
5,798,564
5,960,066
6,126,900
6,299,250
6,477,308
6,661,273
6,851,349
Interest
710,897
848,401
853,512
830,226
831,642
833,093
834,580
836,105
837,668
839,269
Other Revenues
440,738
450,484
460,388
473,796
487,610
501,842
516,505
531,614
547,181
563,222
Operating Grants & Contributions
6,384,062
5,724,197
5,775,111
5,854,898
5,943,609
6,034,641
6,127,953
6,223,908
6,322,271
6,423,209
Capital Grants & Contributions
4,378,796
4,894,794
5,048,931
3,316,160
3,700,748
2,693,553
1,720,064
1,287,407
1,305,790
1,324,548
Cash Flows from Operating Activities
Receipts:
Rates & Annual Charges
User Charges & Fees
Payments:
Employee Costs
Borrowing Costs
(9,560,478) (10,135,735) (10,572,362) (10,977,881) (11,347,177) (11,670,790) (12,029,989) (12,379,277) (12,759,973) (13,141,660)
(700,432)
(742,382)
(721,398)
(808,355)
(860,271)
(1,140,769)
(1,216,220)
(1,129,082)
(1,041,098)
(903,647)
Other Expenses
(2,639,114)
(2,722,053)
(2,798,285)
(2,856,539)
(2,926,587)
(2,994,476)
(3,068,255)
(3,143,973)
(3,221,683)
(3,301,436)
Materials & Contracts
Net cash provided (or used in)
operating activities
Cash Flows from Investing Activities
(8,179,412)
(6,978,150)
(7,279,978)
(7,439,705)
(7,608,503)
(7,801,878)
(7,979,841)
(8,067,507)
(8,369,994)
(8,627,423)
10,179,925
9,961,093
10,802,795
9,855,987
11,198,002
11,074,171
10,340,988
10,361,640
10,612,695
10,983,294
Receipts:
Sale of infrastructure, property,
plant and equipment
Sale of Investments
500,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
500,000
6,144,438
6,437,987
5,155,591
3,261,216
4,144,048
3,664,134
3,060,012
3,058,923
3,637,822
3,152,589
Purchase of Investments
(5,793,250) (4,976,219) (6,134,787) (4,703,525) (4,400,775) (3,547,120)
Purchase of infrastructure, property,
(11,442,749) (11,863,805) (12,199,360) (10,315,803) (17,743,684) (13,745,249)
plant and equipment
Net cash provided (or used in)
(10,591,561) (9,902,037) (12,678,556) (11,258,112) (17,500,411) (13,128,235)
investing activities
Cash Flows from Financing Activities
(3,367,008)
(3,106,723)
(3,219,737)
(3,380,994)
(9,360,388)
(9,508,951) (10,192,734)
(9,749,915)
(9,167,384)
(9,056,751)
(9,274,649)
(9,478,320)
Payments:
Receipts:
Proceeds from Borrowings & Advances
710,000
300,000
2,200,000
1,800,000
6,600,000
3,000,000
0
0
0
0
Repayment of Borrowings and Advances (298,363)
Net cash provided (or used in)
411,637
financing activities
Net (increase) / decrease in cash
0
(374,837)
(400,678)
(589,993)
(762,962)
(1,333,633)
(1,643,762)
(1,732,483)
(1,825,161)
(1,924,994)
(74,837)
1,799,322
1,210,007
5,837,038
1,666,367
(1,643,762)
(1,732,483)
(1,825,161)
(1,924,994)
(15,781)
(76,440)
(192,119)
(465,371)
(387,697)
(470,157)
(427,594)
(487,116)
(420,020)
Payments:
67
APPENDIX Q
Scenario 3 – “Improve” - LTFP SRV Program of Works
2016/17:
2017/18 – 2020/21:
8.8% Special Rate Variation (comprising 1.8% rate peg plus 7% special rate)
9.5% Special Rate Variation (comprising the estimated 2.5% rate peg plus 7% special rate) each year
68
SRV Funding
Funds
Funds
Funds
Funds
Funds
Insufficient Insufficient Insufficient Insufficient Insufficient
Available Available Available Available Available
Funds
Funds
Funds
Funds
Funds
Available
Available
Available
Available
Available
Special Rate Variation Works Program
Project
1
2
3
4
4
7
12
Program
605,693 1,279,971 2,033,913 2,875,475 3,813,401 3,892,208 3,989,513 4,089,251 4,191,482 4,296,269
Total
Over 10yrs
2,293 128,891 29,120 624,187 108,683 (262,485) (233,817) (204,487) (174,472) (143,760)
Year1
Year2
Year3
Year4
Year5
Year6
Year7
Year8
Year9
Year10
2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26
Operational Program
9,650,618
FAG Revenue Recovery
Community Grants Program
Community Facilities Program
Parks / Reserves / Streetscapes
Parks / Reserves / Streetscapes
Governance Compliance
ByPass Study
1,292,599
280,091
1,476,650
1,476,650
784,247
1,511,515
220,100
83,400
25,000
130,000
130,000
70,000
0
0
120,000
25,625
133,640
133,640
71,750
150,000
0
123,360
26,266
137,382
137,382
73,544
154,200
220,100
126,814
26,923
141,229
141,229
75,383
158,518
0
130,365
27,596
145,183
145,183
77,268
162,957
0
134,015
28,286
149,248
149,248
79,200
167,520
0
137,767
28,993
153,427
153,427
81,180
172,211
0
141,624
29,718
157,723
157,723
83,210
177,033
0
145,589
30,461
162,139
162,139
85,290
181,990
0
149,665
31,223
166,679
166,679
87,422
187,086
0
Loan Interest
Loan_FY1
Loan_FY2
Loan_FY3
Loan_FY4
Loan_FY5
315,685
197,974
1,494,438
600,670
0
0
0
0
0
0
0
0
0
0
0
58,237
0
0
0
0
53,398
38,825
0
0
0
48,313
35,599
320,306
0
0
42,968
32,209
293,691
145,594
0
37,351
28,645
265,720
133,496
0
31,448
24,901
236,325
120,782
0
25,244
20,965
205,431
107,420
0
18,724
16,829
172,964
93,378
0
69
Project
Program
Capital - Renewal
Total
Over 10yrs
32,088,711
Year1
2016/17
Year2
2017/18
Year3
2018/19
Year4
2019/20
Year5
2020/21
Year6
2021/22
Year7
2022/23
Year8
2023/24
Year9
2024/25
Year10
2025/26
2
Community Grants Program
280,091
25,000
25,625
26,266
26,923
27,596
28,286
28,993
29,718
30,461
31,223
3
Community Facilities Program
784,247
70,000
71,750
73,544
75,383
77,268
79,200
81,180
83,210
85,290
87,422
8
Road Renewal Program 1 - 50% New 50%
Renewal
1,728,603
0
173,650
177,991
182,441
187,002
191,677
196,469
201,381
206,416
211,576
9
Road Renewal Program 2 - 40% Upgrade 60%
Renewal
2,358,755
0
0
270,000
276,750
283,669
290,761
298,030
305,481
313,118
320,946
10
Braidwood Recreation Ground - 40% Upgrade
60% Renewal
Annual Drainage Construction Program - 90%
Upgrade 10% Renewal
Parks / Reserves / Streetscapes
540,000
0
0
540,000
0
0
0
0
0
0
0
181,136
0
0
0
24,000
24,600
25,215
25,845
26,491
27,153
27,832
402,283
0
0
0
53,300
54,633
55,999
57,399
58,834
60,305
61,813
Flood Plain Management - New 20% Upgrade
60% Renewal 20%
Braidwood Depot - New 10% Upgrade 20%
Renewal 70%
Road Renewal Program 3 - 25% Upgrade 75%
Renewal
Road Renewal Program 4 - 50% Upgrade 50%
Renewal
Bungendore Pool
480,000
0
0
0
480,000
0
0
0
0
0
0
2,100,000
0
0
0
2,100,000
0
0
0
0
0
0
1,537,500
0
0
0
1,537,500
0
0
0
0
0
0
1,785,692
0
0
0
0
279,550
286,539
293,702
301,045
308,571
316,285
2,500,000
0
0
0
0
2,500,000
0
0
0
0
0
13
14
15
17
18
19
20
70
Project
Program
Total
Over 10yrs
Year1
2016/17
Year2
2017/18
Year3
2018/19
Year4
2019/20
Year5
2020/21
Year6
2021/22
Year7
2022/23
Year8
2023/24
Year9
2024/25
Year10
2025/26
Capital - New
5
New Footpath Program
6
784,247
70,000
71,750
73,544
75,383
77,268
79,200
81,180
83,210
85,290
87,422
New Bungendore Recreation Grounds
Development
Road Renewal Program 1 - 50% New 50%
Renewal
2,400,000
0
2,400,000
0
0
0
0
0
0
0
0
1,728,603
0
173,650
177,991
182,441
187,002
191,677
196,469
201,381
206,416
211,576
9
Road Renewal Program 2 - 40% Upgrade 60%
Renewal
1,572,504
0
0
180,000
184,500
189,113
193,841
198,687
203,654
208,745
213,964
10
Braidwood Recreation Ground - 40% Upgrade
60% Renewal
Royalla Reserve
360,000
0
0
360,000
0
0
0
0
0
0
0
350,000
0
0
350,000
0
0
0
0
0
0
0
13
Annual Drainage Construction Program - 90%
Upgrade 10% Renewal
1,630,244
0
0
0
216,000
221,400
226,935
232,608
238,423
244,384
250,494
14
Parks / Reserves / Streetscapes
216,614
0
0
0
28,700
29,418
30,153
30,907
31,680
32,472
33,284
15
Flood Plain Management - New 20% Upgrade
60% Renewal 20%
1,920,000
0
0
0
1,920,000
0
0
0
0
0
0
16
Land Purchase
750,000
0
0
0
750,000
0
0
0
0
0
0
17
Braidwood Depot - New 10% Upgrade 20%
Renewal 70%
Road Renewal Program 3 - 25% Upgrade 75%
Renewal
Road Renewal Program 4 - 50% Upgrade 50%
Renewal
Bungendore Pool
900,000
0
0
0
900,000
0
0
0
0
0
0
512,500
0
0
0
512,500
0
0
0
0
0
0
1,785,692
0
0
0
0
279,550
286,539
293,702
301,045
308,571
316,285
2,500,000
0
0
0
0
2,500,000
0
0
0
0
0
8
11
18
19
20
71
Project
Program
Total
Over 10yrs
Year1
2016/17
Year2
2017/18
Year3
2018/19
Year4
2019/20
Year5
2020/21
Year6
2021/22
Year7
2022/23
Year8
2023/24
Year9
2024/25
Year10
2025/26
Loan Principal Repayments
Loan_FY1
910,098
0
0
94,985
99,824
104,910
110,255
115,872
121,775
127,979
Loan_FY2
517,066
0
0
0
63,324
66,550
69,940
73,503
77,248
81,183
85,319
Loan_FY3
3,561,914
0
0
0
0
522,419
549,034
577,005
606,401
637,294
669,761
1,314,615
0
0
0
0
0
237,463
249,561
262,275
275,637
289,679
(800,000) (6,600,000) (3,000,000)
-
-
-
-
-
- (1,000,000)
-
-
-
-
-
(400,000) (1,600,000) (1,000,000)
-
-
-
-
-
Loan_FY4
Loan Funding
Section 94 Contributions Reserve
Grants/Contribution
(11,600,000)
- (1,200,000)
(1,550,000)
-
(500,000)
(3,700,000)
-
(700,000)
(50,000)
134,498
72
APPENDIX R
Scenario 3 – “Improve” - Fit for the Future Ratios
2016/17:
2017/18 – 2020/21:
8.8% Special Rate Variation (comprising 1.8% rate peg plus 7% special rate)
9.5% Special Rate Variation (comprising the estimated 2.5% rate peg plus 7% special rate) each year
73
FFTF Ratios - Base Case (3 year averages)
2015/16
2016/17
2017/18
2018/19
2019/20
2020/21
2021/22
2022/23
2023/24
2024/25
2015/16
2016/17
2017/18
2018/19
2019/20
2020/21
2021/22
2022/23
2023/24
2024/25
Operating Performance Ratio
Own Source Revenue Ratio
Building and Infrastrtucture
Asset Renewal Ratio
Infrastructure Backlog Ratio
Asset Maintenance Ratio
Debt Service Ratio
Real Operating Expenditure per
Capita
FFTF Ratios - SV (3 yr averages)
Operating Performance Ratio
Own Source Revenue Ratio
Building and Infrastrtucture
Asset Renewal Ratio
Infrastructure Backlog Ratio
Asset Maintenance Ratio
Debt Service Ratio
Real Operating Expenditure per
Capita
Must meet within 5
years
Meet or improve within
5 years
Meet within 5 years
Improvement within 5
years net of IPR
supported service
improvements
74