Moree Plains Shire Long Term Financial Plan
2014–2023
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 TABLE OF CONTENTS 1
2
INTRODUCTION .................................................................................................................5 1.1
Objectives .................................................................................................................... 5
1.2
Timeframe ................................................................................................................... 5
1.3
Method......................................................................................................................... 5
1.4
Structure ...................................................................................................................... 6
1.5
Compliance with Integrated Planning and Reporting .................................................... 7
FOUNDATION ONE - PLANNING ASSUMPTIONS ............................................................8 2.1
Planned Model ............................................................................................................. 8
2.1.1
3
2.2
Optimistic Model .......................................................................................................... 9
2.3
Conservative Model ....................................................................................................10
FOUNDATION TWO - REVENUE FORECASTS ...............................................................11 3.1
Rates ..........................................................................................................................11
3.1.1
Ordinary Rates.....................................................................................................11
3.1.2
Special Rates.......................................................................................................11
3.1.3
Rate Pegging .......................................................................................................12
3.1.4
Special Rate Variations........................................................................................13
3.2
Charges ......................................................................................................................17
3.2.1
Water Charges.....................................................................................................17
3.2.2
Sewer and Trade Waste Charges ........................................................................18
3.2.3
Waste Management Charges ..............................................................................19
3.2.4
Developer Charges (Section 64) ..........................................................................20
3.2.5
Development Contributions (Section 94) ..............................................................20
3.2.6
Average Increase in Rates and Charges for 2013/2014 .......................................21
3.2.7
Other Fees...........................................................................................................22
3.3
4
Key Assumptions and Variables............................................................................ 8
Grants .........................................................................................................................23
3.3.1
Roads to Recovery ..............................................................................................23
3.3.2
Financial Assistance Grants.................................................................................27
3.3.3
Roads and Maritime Services (RMS) ...................................................................31
3.4
Investments / Interest ..................................................................................................38
3.5
Borrowings ..................................................................................................................44
3.6
Cash Reserves ...........................................................................................................47
3.6.1
External Reserves ...............................................................................................47
3.6.2
Internal Reserves .................................................................................................49
FOUNDATION THREE - EXPENDITURE FORECASTS ...................................................55 4.1
Salaries, Wages and Employee Oncosts ....................................................................55
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MPSC LONG TERM FINANCIAL PLAN: MARCH 2013
5
6
4.2
Loans / Debt Service Costs.........................................................................................56
4.3
Plant Replacement .....................................................................................................57
4.4
Funding Arrangements ...............................................................................................58
4.4.1
Boomi Baths ........................................................................................................58
4.4.2
Moree Cultural Art Foundation Ltd (Moree Plains Gallery) ...................................59
4.4.3
Tourism Moree.....................................................................................................60
FOUNDATION FOUR – SENSITIVITY ANALYSIS AND FINANCIAL MODELLING ......... 61 5.1
General Fund ..............................................................................................................62
5.2
Gwydir Day Care ........................................................................................................63
5.3
Max Centre .................................................................................................................63
5.4
Water Fund .................................................................................................................64
5.5
Sewer Fund ................................................................................................................65
5.6
Waste Fund ................................................................................................................66
PERFORMANCE MONITORING ....................................................................................... 67 6.1
6.1.1
Revenue Sources ................................................................................................67
6.1.2
Cash / Liquidity Position.......................................................................................68
6.1.3
Operating Result ..................................................................................................71
6.1.4
Debt and Debtor Management .............................................................................73
6.1.5
Re-votes of Expenditure ......................................................................................77
6.1.6
Accuracy / Timeliness of Financial Data / Budget Compliance .............................78
6.2 7
Financial Analysis (Financial Health Check) ...............................................................67
Financial Sustainability (TCorp Analysis) ....................................................................79
Ten Year Budget .............................................................................................................. 80 7.1.1
Section One – Ten Year Budgeted Income Statements - Consolidated ...............80
7.1.2
Section Two – Ten Year Budgeted Income Statements - Detailed .......................80
7.1.3
Section Three – Ten Year Budgeted Cashflow ....................................................80
7.1.4
Section Four – Ten Year Budgeted Income Statements by Function ...................80
7.1.5
Section Five – Ten Year Capital Budget ..............................................................80
7.1.6
Section Six – Ten Year Budgeted Project Summary ............................................80
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MPSC LONG TERM FINANCIAL PLAN: MARCH 2013
1 INTRODUCTION 1.1 Objectives
1.2 Timeframe
1.3 Method
Page 5
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 1.4 Structure
Page 6
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 1.5 Compliance with Integrated Planning and Reporting
Page 7
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013
2 FOUNDATION ONE - PLANNING ASSUMPTIONS
2.1 Planned Model All budget figures provided in the LTFP, Operational Plan, Delivery Program and Asset Management Plans are based on this model.
2.1.1 Key Assumptions and Variables Assumption / Variable OVERALL Consumer Price Index (CPI) EXPENDITURE Discretionary Expenditure Non-Discretionary Expenditure Salaries and Employee Oncost Road Construction Index (RCI)
Amount % 3.05 -10.00 3.05 4.00 4.02
Water and Sewer Construction Index (WSCI) Loan Repayments
4.57
Funding Agreements INCOME Interest on cash and investments Financial Assistance Grants (FAG) Roads to Recovery (R2R) RMS Funding Rate Pegging (General Rates) Water Rates Sewer Rates Waste Rates
N/A
Page 8
N/A
4.25 3.58 12.00 2.51 - 3.13 3.25 10.00 -10.00 28.00
Areas Affected
All areas not detailed below All areas not detailed below All areas not detailed below All salaries and wages budgets Roads and Facilities Maintenance and project budgets Water and Sewer Maintenance and project budgets Actual debt service cost attributed to relevant fund Tourism, Gallery and Pools General Revenue General Revenue Road Capital Expenditure RMS IPWO and RMCC budgets General Revenue Water Fund General Revenue Sewer Fund General Revenue Waste Fund General Revenue
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 2.2 Optimistic Model
Assumption / Variable OVERALL Consumer Price Index (CPI) EXPENDITURE Discretionary Expenditure Non-Discretionary Expenditure Salaries and Employee Oncost Road Construction Index (RCI)
Amount %
Areas Affected
2.14
All areas not detailed below
-7.00 2.14 2.80 2.81
All areas not detailed below All areas not detailed below All salaries and wages budgets Roads and Facilities Maintenance and project budgets Water and Sewer Maintenance and project budgets Actual debt service cost attributed to relevant fund Tourism, Gallery and Pools
Water and Sewer Construction Index (WSCI) Loan Repayments
3.20
Funding Agreements INCOME Interest on cash and investments Financial Assistance Grants (FAG) Roads to Recovery (R2R) RMS Funding Rate Pegging (General Rates) Water Rates Sewer Rates Waste Rates
N/A
N/A
5.53 4.65 12.00 2.51 – 3.13 4.22 10.00 -10.00 28.00
General Revenue General Revenue Road Capital Expenditure RMS IPWO and RMCC budgets General Revenue Water Fund General Revenue Sewer Fund General Revenue Waste Fund General Revenue
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MPSC LONG TERM FINANCIAL PLAN: MARCH 2013
2.3 Conservative Model
Assumption / Variable OVERALL Consumer Price Index (CPI) EXPENDITURE Discretionary Expenditure Non-Discretionary Expenditure Salaries and Employee Oncost Road Construction Index (RCI)
Amount % 3.97 -13.00 3.97 5.20 5.23
Water and Sewer Construction Index (WSCI) Loan Repayments
5.94
Funding Agreements INCOME Interest on cash and investments Financial Assistance Grants (FAG) Roads to Recovery (R2R) RMS Funding Rate Pegging (General Rates) Water Rates Sewer Rates Waste Rates
N/A
Page 10
N/A
2.98 2.51 12.00 2.51 - 3.13 2.28 10.00 -10.00 28.00
Areas Affected
All areas not detailed below All areas not detailed below All areas not detailed below All salaries and wages budgets Roads and Facilities Maintenance and project budgets Water and Sewer Maintenance and project budgets Actual debt service cost attributed to relevant fund Tourism, Gallery and Pools General Revenue General Revenue Road Capital Expenditure RMS IPWO and RMCC budgets General Revenue Water Fund General Revenue Sewer Fund General Revenue Waste Fund General Revenue
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013
3 FOUNDATION TWO - REVENUE FORECASTS
3.1 Rates
A detailed breakdown of Council’s rates are included in the Operational Plan.
3.1.1 Ordinary Rates
3.1.2 Special Rates
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MPSC LONG TERM FINANCIAL PLAN: MARCH 2013
3.1.3 Rate Pegging
For future years budget the rate pegging cap has been forecast at 3.25% per annum. This is an average increase for the years 2001-2014.
FA Grant / CPI / RCI Increases 9.00% 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% -1.00% -2.00%
CPI
Page 12
FA Grant
RCI
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 3.1.4 Special Rate Variations
Link: A detailed list of approved projects funded by this levy is included in Council’s Annual Report as well as quarterly reports to Council.
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MPSC LONG TERM FINANCIAL PLAN: MARCH 2013
Year 2010 2011 2012 2013
Page 14
Special Rate Amount $ 880,000 909,128 939,220 970,308
A detailed list of projects that are to be funded from the special rate variation is detailed over the page as well as the ten year project list.
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013
PROJECTS 2009/2010 Intersection of Bullus Drive and Tycannah Street – Upgrade SR 7 Poison Gate Road – Renew sealed approaches to 2 bridges Gravel Resheeting – Critical access points and floodways SR 3 Goonal Road – Reseal SR 15 Morialta Road – Reseal SR 109 Gurley Creek Road – Reseal SR127 Buckie Road – Reseal TOTAL
$ 50,000 38,310 379,065 65,009 198,938 84,873 63,805 880,000
PROJECTS 2010/2011 Gravel Resheeting – SR6 Telleraga
$ 390,000
Reconstruct - SR101 Seg 15 (jointly funded with R2R)
512,880
TOTAL
902,880
PROJECTS 2011/2012 Gravel Resheeting – SR24 Sandholes Road
$ 402,000
Reconstruct - SR120 Seg 70
200,000
Reconstruct - SR101 Seg 150 (Jointly funded with R2R)
330,675
TOTAL
932,675
PROJECTS 2012/2013 Gravel Resheeting – SR15 Morialta Road
$ 402,000
Rehabilitate – SR106 Various locations (Jointly funded with R2R)
140,000
Rehabilitate - SR110 Various locations
160,000
Reseals - Various locations TOTAL
261,453 963,453
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MPSC LONG TERM FINANCIAL PLAN: MARCH 2013
Further details are provided in the Special Rate Variation application.
Year 2011 2012 2013
Page 16
Rural Reseals $ 1,013,000 1,536,000 2,505,000
Urban Reseals $ 0 500,000 680,000
Total Special Rate Amount $ 1,013,000 2,036,000 3,184,000
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 3.2 Charges
3.2.1 Water Charges A detailed breakdown of Council’s Water Charges is included in the Operational Plan.
The following percentage increases for Water Fees and Charges have been included in the LTFP: 2013/2014 10.00% 2018/2019 3.05% 2014/2015 3.05% 2019/2020 3.05% 2015/2016 3.05% 2020/2021 3.05% 2016/2017 3.05% 2021/2022 3.05% 2017/2018 3.05% 2022/2023 3.05%
Water Fund Revenue 7,000,000
12.00%
6,000,000
10.00%
5,000,000
8.00%
4,000,000 6.00% 3,000,000 4.00%
2,000,000 1,000,000
2.00%
0
0.00%
Total Yield
% Increase
Page 17
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 3.2.2 Sewer and Trade Waste Charges A detailed breakdown of Council’s Sewer Charges are included in the Operational Plan.
The following percentage increases for Sewer Fees and Charges have been included in the LTFP: 2013/2014 -10.00% 2018/2019 3.05% 2014/2015 3.05% 2019/2020 3.05% 2015/2016 3.05% 2020/2021 3.05% 2016/2017 3.05% 2021/2022 3.05% 2017/2018 3.05% 2022/2023 3.05%
Sewer Fund Revenue 4,000,000
15.00%
3,500,000
10.00%
3,000,000 5.00%
2,500,000 2,000,000
0.00%
1,500,000
-5.00%
1,000,000 -10.00%
500,000 0
-15.00%
Total Yield
Page 18
% Increase
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 3.2.3 Waste Management Charges
A detailed breakdown of Council’s Waste Management Charges is included in the Operational Plan.
The following percentage increases for Waste Fees and Charges have been included in the LTFP: 2013/2014 28.00% 2018/2019 3.05% 2014/2015 3.05% 2019/2020 3.05% 2015/2016 3.05% 2020/2021 3.05% 2016/2017 3.05% 2021/2022 3.05% 2017/2018 3.05% 2022/2023 3.05%
4,500,000
Waste Fund Revenue
4,000,000
30.00% 25.00%
3,500,000 3,000,000
20.00%
2,500,000
15.00%
2,000,000 1,500,000
10.00%
1,000,000
5.00%
500,000 0
0.00%
Total Yield
% Increase
For the 2013/2014 financial year Council is introducing Green Waste bins, which will be used for garden waste and organics. More detail is included in Council’s Operational Plan.
Page 19
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 3.2.4 Developer Charges (Section 64)
A detailed breakdown of Council’s Developer Charges are included in the Operational Plan. Council currently levies Developer Charges for Water and Sewer only. Any funds received are placed into reserves.
3.2.5 Development Contributions (Section 94)
A detailed breakdown of Council’s Development Contributions are included in the Operational Plan. Any Development Contributions received are placed into reserves to be spent on those projects listed in the Plan.
Page 20
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 3.2.6 Average Increase in Rates and Charges for 2013/2014
General Rates Water Availability Water Consumption Sewer Availability Sewer Discharge Waste Charges TOTAL $ Increase (Decrease) % Increase (Decrease) $ Increase (Decrease) per week
General Rates Water Availability Water Consumption Sewer Availability Sewer Discharge Waste Charges TOTAL $ Increase (Decrease) % Increase (Decrease) $ Increase (Decrease) per week
Farmland – Dryland $ 7,128 N/A
Farmland – Irrigable $ 15,592 N/A
Business – Moree $ 4,731 270
Business $
N/A N/A N/A 139 7,267
N/A N/A N/A 139 15,731
1,309 565 839 555 8,269
1,309 565 839 555 4,561
506 7.48 9.73
(545) (3.35) (12.69)
244 3.04 4.68
122 2.75 2.35
1,023 270
Residential – Moree $ 1,014 270
Residential – Boggabilla $ 522 270
Residential – Pallamallawa $ 670 270
Residential – Mungindi $ 459 270
786 565 N/A 541 3,176
786 565 N/A 489 2,632
786 N/A N/A 489 2,215
786 565 N/A 489 2,569
198 6.64 3.80
131 5.22 2.51
221 11.06 4.24
129 5.27 2.48
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MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 3.2.7 Other Fees
Page 22
A detailed breakdown of Council’s Fees and Charges are included in the Operational Plan.
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 3.3 Grants 3.3.1 Roads to Recovery
Program Years
NSW Allocation $
MPSC Allocation $
Increase %
2001-2005
340,000,000.00
4,628,099.00
1.36%
2006-2009
425,000,000.00
5,782,440.00
1.36%
2010-2014
487,580,000.00
6,459,909.00
1.32%
Page 23
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 Year
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Increase %
Rural $
Urban $
0.00 0.00 0.00 0.00 56.18 0.00 0.00 0.00 -10.63 0.00 0.00 0.00 0.00 12.00 0.00 0.00 0.00 0.00 12.00 0.00 0.00 0.00
700,000.00 821,328.00 311,000.00 547,000.00 901,100.00 0.00 64,811.00 1,403,625.00 1,780,695.00 700,000.00 1,350,373.00 353,557.00 0.00 700,000.00 877,000.00 767,000.00 797,000.00 500,000.00 310,000.00 980,000.00 1,000,000.00 1,000,000.00 1,000,000.00
26,000.00 368,500.00 664,350.00 210,000.00 78,821.00 405,583.00 624,000.00 733,285.00 770,441.00 487,000.00 585,000.00 938,425.00 1,291,982.00 591,982.00 570,000.00 680,000.00 650,000.00 950,000.00 1,135,000.00 640,000.00 620,000.00 620,000.00 620,000.00
Total Expended / Budgeted $ 726,000.00 1,189,828.00 975,350.00 757,000.00 979,921.00 405,583.00 688,811.00 2,136,910.00 2,551,136.00 1,187,000.00 1,935,373.00 1,291,982.00 1,291,982.00 1,291,982.00 1,447,000.00 1,447,000.00 1,447,000.00 1,450,000.00 1,445,000.00 1,620,000.00 1,620,000.00 1,620,000.00 1,620,000.00
Yearly Allocation $
R2R Urban/Rural Breakdown 2004-2023 3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
Rural
Page 24
Urban
925,619.80 925,619.80 925,619.80 925,619.80 925,619.80 1,445,610.00 1,445,610.00 1,445,610.00 1,445,610.00 1,291,981.80 1,291,981.80 1,291,981.80 1,291,981.80 1,291,981.80 1,447,019.62 1,447,019.62 1,447,019.62 1,447,019.62 1,447,019.62 1,620,661.97 1,620,661.97 1,620,661.97 1,620,661.97
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013
For future years budgets the R2R grant is forecast to increase by 12% in 2015 and 2020. This is the same increase as the 2010/2014 program excluding the supplementary payment. Year
CPI Increase 3.05% $
Road Construction Index Increase 4.02% $
RTR Actual Allocation $
Yearly Difference RCI $
Cumulative Difference RCI $
Yearly Difference CP I $
Cumulative Difference CPI $
2001
925,619.80
925,619.80
925,619.80
0.00
0.00
0.00
0.00
2002
982,317.31
934,435.23
925,619.80
8,815.43
8,815.43
56,697.51
56,697.51
2003
1,010,006.79
981,450.84
925,619.80
55,831.04
64,646.46
84,386.99
141,084.50
2004
1,036,377.72
1,029,935.68
925,619.80
104,315.88
168,962.34
110,757.92
251,842.42
2005
1,062,748.66
1,074,012.82
925,619.80
148,393.02
317,355.36
137,128.86
388,971.28
2006
1,089,119.59
1,122,497.66
1,445,610.00
-323,112.34
-5,756.98
-356,490.41
32,480.88
2007
1,132,631.64
1,176,859.46
1,445,610.00
-268,750.54
-274,507.52
-312,978.36
-280,497.49
2008
1,156,365.48
1,223,875.07
1,445,610.00
-221,734.93
-496,242.45
-289,244.52
-569,742.01
2009
1,207,788.80
1,292,929.24
1,445,610.00
-152,680.76
-648,923.20
-237,821.20
-807,563.21
2010
1,224,929.91
1,314,967.81
1,291,981.80
22,986.01
-625,937.19
-67,051.89
-874,615.11
2011
1,263,167.76
1,363,452.66
1,291,981.80
71,470.86
-554,466.34
-28,814.04
-903,429.14
2012
1,307,998.35
1,429,568.36
1,291,981.80
137,586.56
-416,879.78
16,016.55
-887,412.59
2013
1,323,820.91
1,494,214.82
1,291,981.80
202,233.02
-214,646.76
31,839.11
-855,573.48
2014
1,366,050.80
1,541,230.43
1,291,981.80
249,248.63
34,601.87
74,069.00
-781,504.49
2015
1,407,715.35
1,603,033.77
1,447,019.62
156,014.15
190,616.02
-39,304.27
-820,808.76
2016
1,450,650.66
1,667,315.42
1,447,019.62
220,295.81
410,911.83
3,631.05
-817,177.71
2017
1,494,895.51
1,734,174.77
1,447,019.62
287,155.16
698,066.99
47,875.89
-769,301.81
2018
1,540,489.82
1,803,715.18
1,447,019.62
356,695.56
1,054,762.55
93,470.21
-675,831.60
2019
1,587,474.76
1,876,044.16
1,447,019.62
429,024.54
1,483,787.09
140,455.15
-535,376.46
2020
1,635,892.74
1,951,273.53
1,620,661.97
330,611.56
1,814,398.65
15,230.77
-520,145.68
2021
1,685,787.47
2,029,519.60
1,620,661.97
408,857.63
2,223,256.28
65,125.50
-455,020.18
2022
1,737,203.99
2,110,903.33
1,620,661.97
490,241.36
2,713,497.65
116,542.02
-338,478.16
2023
1,790,188.71
2,197,451.10
1,620,661.97
576,789.13
3,296,973.91
169,526.74
-168,951.42
Page 25
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013
Roads to Recovery/ CPI and Road Construction Index Increases 2,400,000.00 2,200,000.00 2,000,000.00 1,800,000.00 1,600,000.00 1,400,000.00 1,200,000.00 1,000,000.00 800,000.00
CPI Increase…
Page 26
RTR Actual Allocation
Road Construction Index Increase…
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 3.3.2 Financial Assistance Grants
1976 to 1978-79 1979-80 1980-81 to 1984-85
1.52% 1.75% 2.00%
For future years budgets the increase to the Financial Assistance grant has been forecast at 3.58% per annum. This is an average increase for the years 2002-2013.
Page 27
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013
Page 28
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013
Year
Increase %
GP Component $
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
2.08% 2.61% 2.58% 3.40% 2.15% 2.13% 1.56% 6.65% 6.20% 7.67% 6.30% 4.46% -1.30% 3.58% 3.58% 3.58% 3.58% 3.58% 3.58% 3.58% 3.58% 3.58% 3.58%
2,051,056.00 2,070,888.00 2,087,835.00 2,158,662.00 2,185,559.00 2,199,133.00 2,189,170.00 2,359,230.00 2,569,021.00 2,823,996.00 3,039,673.00 3,176,574.00 3,122,452.00 3,234,235.78 3,350,021.42 3,469,952.19 3,594,176.48 3,722,848.00 3,856,125.95 3,994,175.26 4,137,166.74 4,285,277.31 4,438,690.23
Roads Component $ 1,611,952.00 1,687,716.00 1,767,696.00 1,828,074.00 1,886,707.00 1,959,775.00 2,034,622.00 2,145,398.00 2,214,910.00 2,326,821.00 2,435,394.00 2,542,638.00 2,522,550.00 2,612,857.29 2,706,397.58 2,803,286.61 2,903,644.28 3,007,594.74 3,115,266.63 3,226,793.18 3,342,312.37 3,461,967.16 3,585,905.58
Amount $
Increase $
3,663,008.00 3,758,604.00 3,855,531.00 3,986,736.00 4,072,266.00 4,158,908.00 4,223,792.00 4,504,628.00 4,783,931.00 5,150,817.00 5,475,067.00 5,719,212.00 5,645,002.00 5,847,093.07 6,056,419.00 6,273,238.80 6,497,820.75 6,730,442.74 6,971,392.59 7,220,968.44 7,479,479.11 7,747,244.46 8,024,595.81
95,596.00 96,927.00 131,205.00 85,530.00 86,642.00 64,884.00 280,836.00 279,303.00 366,886.00 324,250.00 244,145.00 -74,210.00 202,091.07 209,325.93 216,819.80 224,581.95 232,621.98 240,949.85 249,575.85 258,510.67 267,765.35 277,351.35
Page 29
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013
FA Grant Breakdown 2004-2023 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0
GP Component
Roads Component
FA Grant / CPI / RCI Increases 9.00% 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% -1.00% -2.00%
CPI
Page 30
FA Grant
RCI
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 Roads and Maritime Services (RMS)
Page 31
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013
1718
17 18
RMS & LGSA Joint Working Party On Road Maintenance Contracts – Discussion Paper on Clustering www.rms.nsw.gov.au
Page 32
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 Year 19
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
increase % -0.69% 31.72% 4.61% 1.86% 4.03% 25.60% 2.93% -0.50% 21.61% -14.80% 2.82% 2.82% 2.82% 2.82% 2.82% 2.82% 2.82% 2.82% 2.82% 2.82%
Allocation $ 428,000.00 563,780.00 589,780.00 600,760.00 625,000.00 785,000.00 808,000.00 804,000.00 977,734.00 833,000.00 857,000.00 881,000.00 906,000.00 932,000.00 958,000.00 985,000.00 1,013,000.00 1,042,000.00 1,071,000.00 1,101,000.00
SIMC/RMCC Allocation 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0
For future years budgets the increase to the Routine Services of the RMCC has been forecast at 2.82% pa (Historical Average).
Page 33
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013
For future years budget the value of Ordered Works has been forecast at $2,481,000. This is the average for the years 2002-2012.
Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Income 1,386,089.65 2,276,590.98 1,709,897.32 1,459,143.30 2,373,570.07 4,620,354.91 2,863,982.00 3,244,721.00 3,533,201.00 2,481,708.16 2,481,708.16 2,481,708.16 2,481,708.16 2,481,708.16 2,481,708.16 2,481,708.16 2,481,708.16 2,481,708.16 2,481,708.16 2,481,708.16
Ordered Works 5,000,000 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0
Page 34
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013
Page 35
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013
For future years budget the increase to the Regional Roads Block grant has been forecast as per the table below. This is an average increase of each component (Road, Supplementary and Traffic) for the years 2004-2009.
Page 36
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Road 877,000.00 911,000.00 927,000.06 951,000.08 977,000.08 999,000.08 1,026,000.00 1,058,000.00 1,088,000.00 1,157,000.00 1,193,000.00 1,230,000.00 1,269,000.00 1,309,000.00 1,350,000.00 1,392,000.00 1,436,000.00 1,481,000.00 1,527,000.00 1,575,000.00
Supplementary 212,000.00 212,000.00 212,000.00 212,000.00 212,000.00 212,000.00 212,000.00 212,000.00 212,000.00 212,000.00 212,000.00 212,000.00 212,000.00 212,000.00 212,000.00 212,000.00 212,000.00 212,000.00 212,000.00 212,000.00
Traffic 72,000.00 74,000.00 76,000.00 77,000.00 79,000.00 81,000.00 83,000.00 86,000.00 88,000.00 90,000.00 92,000.00 94,000.00 96,000.00 98,000.00 100,000.00 103,000.00 106,000.00 109,000.00 112,000.00 115,000.00
% increase 3.10% 1.50% 2.06% 2.26% 1.89% 2.24% 2.65% 2.36% 5.12% 2.60% 2.61% 2.67% 2.66% 2.66% 2.71% 2.75% 2.74% 2.72% 2.76%
Total 1,161,000.00 1,197,000.00 1,215,000.06 1,240,000.08 1,268,000.08 1,292,000.08 1,321,000.00 1,356,000.00 1,388,000.00 1,459,000.00 1,497,000.00 1,536,000.00 1,577,000.00 1,619,000.00 1,662,000.00 1,707,000.00 1,754,000.00 1,802,000.00 1,851,000.00 1,902,000.00
BLOCK GRANT 2,000,000 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0
Road
Year 2007 2008 2009 2010 2011 2012 2013
Supplementary
Traffic
Amount 300,000 298,000 400,000 400,000 400,000 400,000 400,000
Page 37
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 3.4 Investments / Interest
Type Of Investment Product
Maximum Percentage of Total Portfolio
Bank Accounts
100%
Term Deposits
100%
Variable Rate Deposits
40%
Managed Funds
40%
Collateralised Debt Obligations
50%
Constant Proportion Debt Obligations
50%
Capital Protected Notes
80%
Floating Rate Notes
80%
Page 38
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 Term Deposit (TD) Underlying Asset
Single bank, building society, credit union
Interest Rate
Fixed rate
Liquidity
Set maturity date. Early redemption possible but with penalty.
Capital Guarantee
Generally Not
Collateralised Debt Obligation (CDO) Underlying Asset
Basket of Companies
Interest Rate
Guaranteed Floating Spread
Liquidity
Daily at Secondary Market Value Generally not. However at maturity the amount redeemed is the original face value of the investment and not the current secondary market value.
Capital Guarantee
(Typically between 100-200)
Page 39
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 Floating Rate Note (FRN) Underlying Asset
Single company
Interest Rate
Guaranteed Floating Spread
Liquidity
Daily at Secondary Market Value
Capital Guarantee
Generally not. However at maturity the amount redeemed is the original face value of the investment and not the current secondary market value.
Capital Protected Note (CPN) Underlying Asset
Various
Interest Rate
Floating
Liquidity
Daily at Secondary Market Value
Capital Guarantee
Yes
Page 40
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013
Page 41
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013
1,800,000
Interest Rate / Interest Received
10.00%
1,600,000
9.00%
1,400,000
8.00% 7.00%
1,200,000
6.00%
1,000,000
5.00% 800,000
4.00%
600,000
3.00%
400,000
2.00%
200,000
1.00%
0
0.00%
Interest
Interest Rate
Year
Cash and Investments as at 30th June
Interest Rate
Interest
2001 2002 2003 2004 2005
7,598,000 8,348,000 6,146,000 9,188,000 16,643,000
4.96% 3.68% 5.48% 4.17% 4.30%
377,000 307,000 337,000 383,000 715,000
2006 2007 2008 2009 2010 2011
22,131,000 25,002,000 18,239,000 14,336,000 15,697,000 22,901,000
4.87% 6.54% 9.34% 5.54% 4.75% 5.00%
1,078,000 1,634,000 1,703,000 794,000 615,000 1,140,025
2012 2013 2014 2015 2016 2017
16,358,000 19,000,000 19,579,500 20,159,000 20,738,500 21,318,000
4.15% 3.75% 4.25% 4.75% 5.00% 5.12%
908,597 720,000 832,129 957,553 1,036,925 1,091,482
2018 2019 2020 2021 2022 2023
21,897,500 22,477,000 23,056,500 23,636,000 24,215,500 24,795,000
5.24% 5.36% 5.48% 5.60% 5.72% 5.75%
1,147,429 1,204,767 1,263,496 1,323,616 1,385,127 1,385,127
Page 42
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013
Page 43
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 3.5 Borrowings
Link: Section 4.2 Loans / Debt Service Costs
Loan Purpose GDC extension
Loan Amount
Loan Term
Annual Cost (approx.)
Landfill Remediation
$450,000 20 years $2,200,000 10 years
$41,000 $304,000
WMF New Cell
$3,900,000 30 years
$300,000
Waste Water Holding Ponds
$2,000,000 30 years
$154,000
$11,000,000* 20 years
$472,000*
Gateway Project
$19,550,000
$1,271,000
*Gateway loan and loan repayments to be offset by sale of land during the course of development.
This project is to commence in:
2013/14
Complete in:
2014/15
Total cost of the project will be:
$450,000.00
To be fully funded by loans:
$450,000.00
Term of the loan will be:
20 years
Loan will begin in:
2014
Maturing in:
2034
Page 44
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013
This project is to commence in:
2013/14
Complete in:
2014/15
Total cost of the project will be:
$2,200,000.00
To be fully funded by loans:
$2,200,000.00
Term of the loan will be:
10 years
Loan will begin in:
2014
Maturing in:
2024
This project is to commence in:
2013/14
Complete in:
2014/15
Total cost of the project will be:
$2,200,000.00
To be fully funded by loans:
$2,200,000.00
Term of the loan will be:
30 years
Loan will begin in:
2014
Maturing in:
2044
Page 45
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013
This project is to commence in:
2013/14
Complete in:
2014/15
Total cost of the project will be:
$2,700,000.00
To be funded by loans:
$2,000,000.00
Term of the loan will be:
30 years
Loan will begin in:
2014
Maturing in:
2044
This project is to commence in:
2013/14
Complete in:
2014/15
Total cost of the project will be: To be funded by loans: Term of the loan will be:
$11,000,000.00 $5,000,000.00 30 years
Loan will begin in:
2014
Maturing in:
2044
Page 46
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 3.6 Cash Reserves
3.6.1 External Reserves
Fund General Water Sewer
Unexpended Balance $ 399,000 1,720,000 147,000
Links: The following sections provide additional information on Council borrowings. Section 3.5 Borrowings Section 4.2 Loans/Debt Service Costs
Page 47
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013
Links: The following sections provide detail of grants received by Council: Section 3.3.1 Roads to Recovery Section 3.3.2 Financial Assistance Grants Section 3.3.3 Roads and Maritime Services (RMS)
Links: The following sections provide detail on special rates and charges applied by Council: Section 3.1.2 Special Rates Section 3.2.1 Water Charges Section 3.2.2 Sewer and Trade Waste Charges Section 3.2.3 Waste Management Charges
Links: The following sections provide detail on contributions collected by Council: Section 3.2.4 Developer Charges (Section 64) Section 3.2.5 Development Contributions (Section 94)
Page 48
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013
Link: Section 3.1.4 Special Rate Variations
Link: Section 3.1.4 Special Rate Variations
3.6.2 Internal Reserves
Page 49
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013
Link: Section 7.5 Airports
Page 50
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013
Link: Section 7.1 Water Fund
Link: Section 7.2 Sewer Fund
Page 51
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013
Page 52
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013
Link: Section 6.1.5 Re-votes of Expenditure
Page 53
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013
Page 54
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013
4 FOUNDATION THREE - EXPENDITURE FORECASTS 4.1 Salaries, Wages and Employee Oncosts
Year 2004 2005 2006 2007 2008 2009 2010 2011 2012
Salaries and Wages 8,541,000 8,396,000 9,099,000 8,747,000 8,487,000 9,568,000 10,601,000 10,127,000 10,877,000
Employee Leave Entitlements (ELE) 1,364,000 1,774,000 1,246,000 2,085,000 2,471,000 2,070,000 2,061,000 2,388,000 2,452,000
Total
Percentage Increase
9,905,000 10,170,000 10,345,000 10,832,000 10,958,000 11,638,000 12,662,000 12,515,000 13,329,000
2.68% 1.72% 4.71% 1.16% 6.21% 8.80% -1.16% 6.50%
Link: Further details about Council’s staff costs are included in the Workforce Plan.
Page 55
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 4.2 Loans / Debt Service Costs
Link: Section 6.1.4 Debt and Debtor Management
Total Loan Repayments by Fund 5,000,000.00 4,500,000.00 4,000,000.00 3,500,000.00 3,000,000.00 2,500,000.00 2,000,000.00 1,500,000.00 1,000,000.00 500,000.00 0.00
General Fund
25.00%
Sewerage Fund
Water Fund
Total
Debt Service Ratio by Fund
20.00%
15.00%
10.00%
5.00%
0.00%
General Fund
Page 56
Sewerage Fund
Water Fund
Total
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 4.3 Plant Replacement
Page 57
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 4.4 Funding Arrangements
4.4.1 Boomi Baths
Year
CPI (%)
2013
Page 58
Value 68,138
2014
3.05
70,312
2015
3.05
72,457
2016
3.05
74,666
2017
3.05
76,944
2018
3.05
79,291
2019
3.05
81,709
2020
3.05
84,201
2021
3.05
86,769
2022
3.05
89,416
2023
3.05
92,143
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 4.4.2 Moree Cultural Art Foundation Ltd (Moree Plains Gallery)
Year
CPI (%)
2013
Value 141,678
2014
3.05
146,198
2015
3.05
150,657
2016
3.05
155,252
2017
3.05
159,987
2018
3.05
164,866
2019
3.05
169,895
2020
3.05
175,077
2021
3.05
180,416
2022
3.05
185,919
2023
3.05
191,590
Page 59
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 4.4.3 Tourism Moree
Year
CPI (%)
2013
Page 60
Value 413,817
2014
3.05
427,018
2015
3.05
440,042
2016
3.05
453,463
2017
3.05
467,294
2018
3.05
481,546
2019
3.05
496,233
2020
3.05
511,368
2021
3.05
526,965
2022
3.05
543,038
2023
3.05
559,600
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013
5 FOUNDATION FOUR – SENSITIVITY ANALYSIS AND FINANCIAL MODELLING
Page 61
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 5.1 General Fund TO BE INCLUDED IN NEXT VERSION OF THE LTFP
Page 62
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013
5.2 Gwydir Day Care
TO BE INCLUDED IN NEXT VERSION OF THE LTFP
5.3 Max Centre
TO BE INCLUDED IN NEXT VERSION OF THE LTFP
Page 63
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 5.4 Water Fund
TO BE INCLUDED IN NEXT VERSION OF THE LTFP
Page 64
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 5.5 Sewer Fund
TO BE INCLUDED IN NEXT VERSION OF THE LTFP
Page 65
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 5.6 Waste Fund
TO BE INCLUDED IN NEXT VERSION OF THE LTFP
Page 66
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013
6 PERFORMANCE MONITORING 6.1 Financial Analysis (Financial Health Check) 6.1.1 Revenue Sources
Source of Total Ordinary Revenue Before Capital User Charges and Fees 21% Investment 2%
Rates and Charges 42%
Grants 27%
Other 2%
Contributions and Donations 6%
Page 67
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 6.1.2 Cash / Liquidity Position
Unrestricted Current Ratio 3.50 2.75 2.46
2.71
2.28
2.50 Ratio
1.87
2.03
2.00 1.50 1.00 0.50 0.00
Financial Year
Page 68
3.10
3.07
2.83
3.00
2.55
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013
Available Cash Position (Available Cash Assets) 16,000
14,398
13,147
Amount ('000)
14,000 12,000
10,670
10,000
9,686
7,857
7,979
8,500
7,044
8,000 6,000
4,068
4,000 2,000
1,402
0
Financial Year
Availability of Cash Assets as a % of Revenue (Available Cash Assets) 40.00%
36.21%
35.00%
29.51%
Percentage
30.00%
23.95%
25.00%
23.19%
21.22%
20.00%
22.76%
17.27% 15.44%
13.90%
15.00% 10.00%
4.97%
5.00% 0.00%
Financial Year
Page 69
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013
Available Cash Position (Unrestricted Available Cash Assets) 8,000
7,362
Amount ('000)
7,000 6,000
5,238
5,000
3,908
4,000
2,779 2,800
3,000 2,000 1,000
1,357
1,283
1,214 453
9
0 Financial Year
Availability of Cash Assets as a % of Revenue (Unrestricted Available Cash Assets) 20.00%
18.52%
Percentage
15.00% 11.76% 10.55%
10.00% 6.53% 6.28%
4.64%
5.00%
2.98% 0.03%
1.32%
0.00%
Financial Year
Page 70
2.33%
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 6.1.3 Operating Result
Result from Ordinary Operations before Capital Grants and Contribution 4,000
2,282
Amount ('000)
2,000
768
2,239 860
467
0 -2,000
-526 -1789
-2,000
-4,000
-4,045
-6,000 -8,000
-6,716
Financial Year
Page 71
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013
Result from Ordinary Operations 5,495 4,847
5,000
4,023
Amount ('000)
3,078
3,000
2,896 2,145
1,798
821
1,000 -1,000
-208
-3,000 -3,916
-5,000
Financial Year
Page 72
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 6.1.4 Debt and Debtor Management
Link: Section 4.2 Loans / Debt Service Costs Section 3.4 Borrowings
Page 73
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 Debt Service Ratio 7.62%
8.00% 6.65%
7.00% Percentage
6.00%
6.44%
7.02%
6.96% 6.45%
6.22% 5.05%
5.00% 4.00% 3.00% 2.00% 1.00% 0.00%
Financial Year
Page 74
6.88%
6.65%
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013
Outstanding Debtors Total 20.00% 18.00%
Percentage
16.00%
18.63%
17.41% 14.97%
14.87% 12.70% 13.29%
14.00% 12.00%
14.41% 11.04% 12.22%
9.57%
10.00% 8.00% 6.00% 4.00% 2.00% 0.00%
Financial Year
Page 75
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013
Outstanding Rates and Annual Charges 12.00%
11.29%
11.69% 9.74%
9.74%
10.00%
9.15%
9.09% 7.89%
8.27%
Percentage
8.00% 6.00% 4.00% 2.00% 0.00%
Financial Year
Page 76
9.63% 8.42%
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 6.1.5 Re-votes of Expenditure
Re-votes of Expenditure 1.80% 1.60%
Percentage
1.40%
1.68%
1.67%
1.32%
1.20%
1.04%
1.00% 0.66%
0.80% 0.60%
0.29%
0.40% 0.20%
0.75%
0.00%
0.00%
0.00%
0.00%
Financial Year
Page 77
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 6.1.6 Accuracy / Timeliness of Financial Data / Budget Compliance
INDICATOR Unqualified Audit Report** Financial Statements Lodged within deadlines Monthly Management Reports Quarterly Statutory Reports Annual Statutory Reports Minimum 3 year budget Monthly budget to actual result analysis The RAO formerly report to Council on sign off of Statements Internal Audit Committee TOTAL TICKS
Page 78
2012
2011
2010
2009
2008
8
8
7
7
7
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 6.2 Financial Sustainability (TCorp Analysis)
TO BE INCLUDED IN NEXT VERSION OF THE LTFP
Page 79
MPSC LONG TERM FINANCIAL PLAN: MARCH 2013
7 Ten Year Budget 7.1.1 Section One – Ten Year Budgeted Income Statements Consolidated 7.1.2 Section Two – Ten Year Budgeted Income Statements - Detailed 7.1.3 Section Three – Ten Year Budgeted Cashflow 7.1.4 Section Four – Ten Year Budgeted Income Statements by Function 7.1.5 Section Five – Ten Year Capital Budget 7.1.6 Section Six – Ten Year Budgeted Project Summary
A detailed breakdown of the 2013/2014 – 2016/2017 budget is included in the Operational Plan and Delivery Program.
Page 80
Moree Plains Shire Council Level 2 Max Centre Arcade 30 Heber Street Moree NSW 2400
Telephone: (02) 6757 3222 Fax: (02) 6752 3934 Email: council@mpsc.nsw.gov.au
Postal Address: PO Box 420 Moree NSW 2400
Web: www.mpsc.nsw.gov.au Facebook: www.facebook.com/MoreePlainsShireCouncil Twitter: https://twitter.com/moreeshire