Summary of Recommendations
BUDGET OVERVIEW
Summary of Recommendations
For the year ending
30 June 2015
2013-14
Anticipated
$000
2014-15
Proposed
$000
2015-16
Proposed
$000
2016-17
Proposed
$000
1,997,777
1,936,989
2,440,030
1,919,038
1,995,760
1,888,370
2,140,094
1,891,101
INCREASE IN OPERATING CAPABILITY
60,787
520,991
107,390
248,993
Appropriations from Operations
Accumulated Surplus at beginning of year
-80,120
547
-313,133
528
-316,454
463
-49,474
447
ACCUMULATED SURPLUS AVAILABLE FOR
TRANSFER
Transfers (to) / from Reserves
ACCUMULATED SURPLUS AT PERIOD END
-18,786
208,386
-208,601
199,966
19,314
528
-207,923
463
209,048
447
-199,592
374
OPERATIONS
Revenue
Expenses
Note:
(i) Figures in the Budgeted Financial Statements have been rounded to the nearest thousand with the figures midway between
rounding points rounded up
-7-
Budgeted Statement of Comprehensive Income
BUDGETED FINANCIAL STATEMENTS
Budgeted Statement of Comprehensive Income
For the year ending
30 June 2015
2013-14
Anticipated
$000
2014-15
Proposed
$000
2015-16
Proposed
$000
2016-17
Proposed
$000
911,686
-50,115
861,571
958,615
-47,450
911,165
1,011,972
-49,175
962,796
1,067,870
-50,978
1,016,892
312,093
214,130
305,856
68,888
235,239
728,938
212,443
313,230
62,082
212,172
208,939
220,248
321,061
34,599
248,117
209,716
227,183
335,083
20,321
330,898
1,136,205
1,528,865
1,032,964
1,123,201
Total Income
1,997,777
2,440,030
1,995,760
2,140,094
Expenses
Employee costs
Materials and services costs
Depreciation and amortisation expenses
Finance costs
Loss on disposal of property, plant and equipment
660,130
1,745,733
322,549
133,344
136,634
682,500
1,651,283
337,043
138,075
22,824
688,495
1,180,521
368,739
118,906
23,014
706,293
1,244,875
372,963
99,644
23,014
73,092
85,313
91,681
89,296
3,071,483
2,917,039
2,471,356
2,536,086
-1,134,493
-998,000
-582,986
-644,985
1,936,989
1,919,038
1,888,370
1,891,101
60,787
520,991
107,390
248,993
Income
Revenue
Rates and utility charges
Less discount and pensioner remissions
Donations, contributions, subsidies and grants
Fees and charges
Public transport
Interest
Other revenue
Other expenses
Less capitalised expenses
Total Expenses
INCREASE IN OPERATING CAPABILITY
-8-
Budgeted Statement of Financial Position
BUDGETED FINANCIAL STATEMENTS
Budgeted Statement of Financial Position
For the year ending
30 June 2015
2013-14
Anticipated
$000
2014-15
Proposed
$000
2015-16
Proposed
$000
2016-17
Proposed
$000
151,945
78,682
13,014
72,324
322
316,287
420,652
76,038
11,679
74,058
322
582,749
97,072
78,731
8,349
68,055
322
252,529
306,792
86,316
8,805
68,175
322
470,410
1,241,282
172,629
2,158,143
16,849,861
115,285
20,537,200
561,282
173,431
2,158,143
16,661,583
157,321
19,711,760
261,282
174,253
2,158,143
16,783,302
145,416
19,522,395
0
175,096
2,158,143
17,006,249
120,439
19,459,927
20,853,487
20,294,509
19,774,924
19,903,337
418,112
46,801
1,702
108,786
23,620
599,021
473,506
506,730
1,702
111,303
23,653
1,116,894
350,314
112,786
1,707
112,374
24,349
601,530
368,535
30,955
1,704
112,783
23,964
537,940
16,154
2,520,573
26,951
2,485
4,061
2,570,224
16,154
1,552,400
27,606
2,487
4,064
1,602,710
16,154
1,439,702
27,885
2,483
4,058
1,490,282
16,154
1,408,749
27,991
2,487
4,065
1,459,446
3,169,245
2,719,604
2,091,812
1,997,386
17,684,242
17,574,905
17,683,112
17,932,951
9,073,470
8,367,672
242,572
528
9,386,603
7,737,343
450,496
463
9,703,057
7,738,160
241,447
447
9,752,531
7,739,006
441,039
374
17,684,242
17,574,905
17,683,112
17,932,951
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other assets
Financial assets
Non-current assets
Receivables
Other financial assets
Investments in associates
Property, plant and equipment
Intangible assets
Total Assets
Liabilities
Current liabilities
Trade and other payables
Other financial liabilities
Derivative financial instruments
Provisions
Others
Non-current liabilities
Payables
Other financial liabilities
Provisions
Defined benefit plan
Other
Total Liabilities
NET COMMUNITY ASSETS
Community Equity
Capital
Asset revaluation surplus
Other reserves
Accumulated surplus
TOTAL COMMUNITY EQUITY
-9-
Budgeted Statement of Cash Flows
BUDGETED FINANCIAL STATEMENTS
Budgeted Statement of Cash Flows
For the year ending
30 June 2015
2013-14
Anticipated
$000
2014-15
Proposed
$000
2015-16
Proposed
$000
2016-17
Proposed
$000
860,581
520,688
208,053
72,949
68,888
165,246
1,896,404
918,062
521,420
622,606
76,243
62,082
142,674
2,343,087
961,960
539,452
98,304
81,135
34,599
154,910
1,870,361
1,011,250
560,323
97,389
82,827
20,321
250,600
2,022,710
642,532
1,749,302
92,325
73,092
671,145
1,602,735
92,370
85,313
686,321
1,301,212
115,128
91,681
700,458
1,232,426
95,862
89,296
2,557,252
-1,134,493
2,451,563
-998,000
2,194,341
-582,986
2,118,042
-644,985
1,422,758
1,453,563
1,611,355
1,473,057
473,646
889,524
259,005
549,653
163,464
200,716
81,419
51,038
-1,103,402
-967,911
-553,486
-615,485
72,653
67,800
99,900
79,800
-867,285
-699,395
-372,166
-484,647
437,508
-46,801
0
-601,421
0
-510,419
0
-116,567
0
680,000
300,000
261,282
390,707
78,579
-210,419
144,714
NET INCREASE/(DECREASE) IN CASH HELD
-2,932
268,707
-323,580
209,720
Cash and cash equivalents at beginning of year
154,877
151,945
420,652
97,072
CASH AND CASH EQUIVALENTS AT YEAR END
151,945
420,652
97,072
306,792
Cash Flows from Operating Activities
Receipts
Net rates and utility charges
Public transport, fees and charges
Subsidies and grants
Contributions
Interest
Other
Payments
Employee costs
Materials and services costs
Finance costs
Other
Less capitalised expenses
Net cash generated by Operating Activities
Cash Flows from Investing Activities
Proceeds from disposal of property, plant and
equipment
Payments for property, plant and equipment and
capital work in progress
Dividends received
Net cash used in Investing Activities
Cash Flows from Financing Activities
Proceeds from borrowings
Repayment of borrowings
Proceeds on settlement of loan receivables
Net cash provided by Financing activities
- 10 -
BUDGETED FINANCIAL STATEMENTS
Budgeted Statement of Changes in Equity
For the year ending 30 June
2015
Total
2014
Anticipated
$000
Balance at beginning of year
2013-14 Anticipated
Accumulated
City Capital
Surplus
and Capital
Accounts
$000
$000
Asset
Revaluation
Surplus
$000
Fair Value /
Other Reserves
$000
Total
2015
Proposed
$000
Accumulated
Surplus
$000
2014-15 Proposed
Capital
$000
Asset
Revaluation
Surplus
Fair Value /
Other Reserves
$000
$000
Total
2016
Proposed
$000
Accumulated
Surplus
$000
2015-16 Proposed
City Capital
and Capital
Accounts
$000
Asset
Revaluation
Surplus
$000
Other
Reserves
$000
Total
2017
Proposed
$000
Accumulated
Surplus
$000
2016-17 Proposed
City Capital
and Capital
Accounts
$000
Asset
Revaluation
Surplus
$000
Other
Reserves
$000
18,224,137
547
8,993,349
8,968,354
261,886
17,684,242
528
9,073,470
8,367,672
242,572
17,574,905
463
9,386,603
7,737,343
450,496
17,683,112
447
9,703,057
7,738,160
241,447
60,787
60,787
0
0
0
520,991
520,991
0
0
0
107,390
107,390
0
0
0
248,993
248,993
0
0
0
-600,682
0
0
-600,682
0
-630,329
0
0
-630,329
0
817
0
0
817
0
846
0
0
846
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
17,684,242
61,335
8,993,349
8,367,672
261,886
17,574,905
521,519
9,073,470
7,737,343
242,572
17,683,112
107,853
9,386,603
7,738,160
450,496
17,932,951
249,440
9,703,057
7,739,006
241,447
Debt Funding
0
-46,801
46,801
0
0
0
129,801
-129,801
0
0
0
-206,641
206,641
0
0
0
148,497
-148,497
0
0
Asset Acquisition
0
-33,320
33,320
0
0
0
-442,935
442,935
0
0
0
-109,813
109,813
0
0
0
-197,970
197,970
0
0
0
-80,120
80,120
0
0
0
-313,133
313,133
0
0
0
-316,454
316,454
0
0
0
-49,474
49,474
0
0
Insurance
0
5,000
0
0
-5,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Valley Mall General
0
-27
0
0
27
0
-138
0
0
138
0
13
0
0
-13
0
4
0
0
-4
Valley Mall Asset Replacement
0
-535
0
0
535
0
-647
0
0
647
0
-723
0
0
723
0
-723
0
0
723
Queen Street Mall General
0
-294
0
0
294
0
94
0
0
-94
0
-395
0
0
395
0
-1,106
0
0
1,106
Queen Street Mall Asset
Replacement
0
-846
0
0
846
0
-816
0
0
816
0
-886
0
0
886
0
-886
0
0
886
Emergent Expenditure and
Inflation Provision
0
29,630
0
0
-29,630
0
-198,699
0
0
198,699
0
250,339
0
0
-250,339
0
-196,882
0
0
196,882
Infrastructure
0
-15,414
0
0
15,414
0
-7,717
0
0
7,717
0
-39,300
0
0
39,300
0
0
0
0
0
TransApex
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
City Reach Boardwalk
0
1,800
0
0
-1,800
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Transfer to reserve (from)
accumulated surplus
0
19,314
0
0
-19,314
0
-207,923
0
0
207,923
0
209,048
0
0
-209,048
0
-199,592
0
0
199,592
17,684,242
528
9,073,470
8,367,672
242,572
17,574,905
463
9,386,603
7,737,343
450,496
17,683,112
447
9,703,057
7,738,160
241,447
17,932,951
374
9,752,531
7,739,006
441,039
Increase in Operating Capability
Increase/(Decrease) in asset
revaluation surplus
Transfer to foreign exchange
reserve for adjustments to cash
flow hedges
Total recognised income and
expense for the year
Appropriations to / (from)
accounts:
Transfers to capital (from)
accumulated surplus
Reserves Transfers
Balance at Year End
- 11 -
BUDGET OVERVIEW
Summary of Recommendations - Long Term Financial Forecast
For the year ending
30 June 2015
2014-15
Proposed
$000
2015-16
Proposed
$000
2016-17
Proposed
$000
2017-18
Proposed
$000
2018-19
Proposed
$000
2019-20
Proposed
$000
2020-21
Proposed
$000
2021-22
Proposed
$000
2022-23
Proposed
$000
2023-24
Proposed
$000
2,440,030
1,919,038
1,995,760
1,888,370
2,140,094
1,891,101
2,116,003
1,973,561
2,220,863
2,031,885
2,284,738
2,090,102
2,310,948
2,168,391
2,381,800
2,218,916
2,456,305
2,274,389
2,535,714
2,301,833
INCREASE IN OPERATING CAPABILITY
520,991
107,390
248,993
142,442
188,977
194,636
142,557
162,884
181,916
233,881
Appropriations from Operations
Accumulated Surplus at beginning of year
-313,133
528
-316,454
463
-49,474
447
-148,245
374
-188,968
371
-194,629
381
-142,567
388
-154,039
378
-128,651
374
-132,683
389
208,386
-208,601
199,966
-5,429
381
388
378
9,224
53,639
101,587
-207,923
209,048
-199,592
5,800
0
0
0
-8,850
-53,250
-101,182
463
447
374
371
381
388
378
374
389
405
20,294,509
2,719,604
17,574,905
19,774,924
2,091,812
17,683,112
19,930,337
1,997,386
17,932,951
20,154,420
2,079,027
18,075,392
20,558,107
2,332,851
18,225,256
20,795,436
2,368,531
18,426,905
20,983,213
2,369,733
18,613,480
21,104,450
2,326,373
18,778,077
21,243,977
2,282,700
18,961,277
21,433,925
2,237,842
19,196,083
OPERATIONS
Revenue
Expenses
ACCUMULATED SURPLUS AVAILABLE FOR TRANSFER
Transfers (to)/from Reserves
ACCUMULATED SURPLUS AT PERIOD END
Total Assets
Total Liabilities
TOTAL COMMUNITY EQUITY
Note:
(i) Figures in the Budgeted Financial Statements have been rounded to the nearest thousand and the figures midway between rounding points are rounded up
- 12 -
Index of Outcomes
Financial Ratios
BUDGETED FINANCIAL STATEMENTS
Financial Ratios
For the year ending 30 June 2015
2014-15
Proposed
2015-16
Proposed
2016-17
Proposed
2017-18
Proposed
2018-19
Proposed
2019-20
Proposed
2020-21
Proposed
2021-22
Proposed
2022-23
Proposed
2023-24
Proposed
Revenue Ratio
Net Rates and Utility Charges Revenue / Total Revenue
(Council's dependence on rate income)
37.3%
48.2%
47.5%
50.8%
50.1%
50.4%
51.6%
51.8%
52.0%
52.2%
Debt Servicing Cover
(Operating Capability Increase + Debt Servicing Costs) /
Debt Servicing Costs
(Extent to which debt servicing cost requirements are
covered by the increase in Operating Capability)
4.8 times
1.9 times
3.5 times
2.5 times
2.8 times
2.8 times
2.3 times
2.5 times
2.8 times
3.3 times
Debt Servicing Ratio
Debt Servicing and Redemption Cost / Total Revenue
(The capacity of the Council to service its outstanding
debt)
30.3%
31.5%
10.1%
6.2%
6.8%
7.2%
7.2%
6.9%
6.6%
6.3%
Net Debt/Revenue Ratio
Net Debt / Total Revenue
(Council's borrowing ability)
67.1%
72.9%
52.9%
55.3%
64.5%
63.1%
59.3%
53.9%
47.2%
38.8%
7.5 to 1
9.5 to 1
10.0 to 1
9.7 to 1
8.8 to 1
8.8 to 1
8.9 to 1
9.1 to 1
9.3 to 1
9.6 to 1
81.2%
65.4%
21.3%
12.3%
13.6%
14.2%
14.0%
13.4%
12.7%
12.1%
$ 1,411
$ 1,237
$ 952
$ 972
$ 1,175
$ 1,170
$ 1,099
$ 1,019
$ 912
$ 766
0.4
0.9
0.9
0.8
0.9
0.9
1.0
1.1
0.4%
7.4%
2.0%
4.0%
1.5%
2.2%
2.8%
4.8%
Debt Exposure Ratio
Total Assets / Total Liabilities
(Council's exposure to debt)
Debt Commitment Ratio
Debt Servicing and Redemption Costs / Net Rate and
Utility Charges Revenue
(Identifies Council debt redemption strategy)
Net Debt Per Capita
Working Capital Ratio
Current Assets / Current Liabilities
(Extent to which Council has liquid assets available to
meet short term financial obligations)
Operating Surplus Ratio
Net Operating Surplus / Total Operating Revenue
(Extent to which revenues raised cover operational
0.5
-0.4%
- 13 -
0.8
4.0%
Index of Outcomes
For the year ending 30 June 2015
2014-15
Proposed
2015-16
Proposed
2016-17
Proposed
2017-18
Proposed
2018-19
Proposed
2019-20
Proposed
2020-21
Proposed
2021-22
Proposed
2022-23
Proposed
2023-24
Proposed
113.2%
97.6%
74.9%
79.1%
88.8 %
87.2%
83.7%
78.2%
70.9%
61.9%
Interest Coverage Ratio
Net Interest Expense on Debt Service / Total Operating
Revenue
(Extent to which Council’s operating revenues are
committed to interest expenses)
4.0%
4.5%
3.9%
4.1%
4.3%
4.5%
4.4%
4.1%
3.7%
3.2%
Asset Sustainability Ratio
Capital Expenditure on the Replacement of Assets
(renewals) / Depreciation Expense
(Approximation of the extent to which the infrastructure
assets managed by Council are being replaced as these
reach the end of their useful lives)
84.0%
68.7%
66.6%
74.4%
75.8%
75.1%
76.4%
78.0%
79.5%
78.0%
Asset Consumption Ratio
Written Down Value of Infrastructure Assets / Gross
Current Replacement Cost of Infrastructure Assets
(The aged condition of a Council’s stock of physical
assets)
73.8%
73.8%
73.8%
73.6%
73.4%
73.2%
73.1%
72.9%
73.1%
73.1%
expenses only or are available for capital funding )
Net Financial Liabilities Ratio
Total Liabilities less Current Assets / Total Operating
Revenue
(Extent to which the net financial liabilities of Council can
be serviced by its operating revenues)
- 14 -