Rate Determination Statement

Budgeted Standard Statement of FinancialPerformance for the 5 years ending30 June 2007 to 30 June 2011

Budgeted Standard Statement of FinancialPosition for the 5 years ending 30 June 2007 to30 June 2011

Budgeted Standard Statement of Cash Flows forthe 5 years ending 30 June 2007 to 30 June2011

Budgeted Capital Works Standard Statement forthe 5 years ending 30 June 2007 to 30 June2011

Schedule of Reserves

Regulation 8 – Projected Rate in $

FINANCIALS

CITY OF PORT PHILLIP2006/2007 RATE DETERMINATION STATEMENT

CITY OF PORT PHILLIPBudget

2005/2006Budget BID

2006/07RevenueRates 61,852 66,986Government Grants 8,903 7,288Capital Revenue 1,615 1,415Asset Sale - Kyme Place 0 350Capital Grants 570 1,647Fees & Charges 10,101 12,041Internal Income 0 305Parking Revenue 20,479 21,177Interest Received 1,050 1,050Other Income 6,162 6,718Total Revenue 110,732 118,977ExpenditureEmployee Costs 36,676 38,697Contract Services 29,937 32,063Materials & Other Costs - discretionary 8,323 7,547Materials & Other Costs - non-discretionary 11,133 11,100Professional Services 2,809 3,153Interest Paid 562 512Depreciation 11,291 11,492Total Expenditure 100,731 104,564

Net Operating 10,001 14,413Add Back Depreciation 11,291 11,492

Funds Available 21,292 25,905

Works Program 21,615 27,962Remediation expenditure 0 1,000Southport Nursing Home Contribution 0 3,000Capital Expenditure 2,722 2,356Transfers to Statutory Reserves 1,615 1,415Total Capital 25,952 35,733

Operating Result (4,660) (9,827)Principal Debt Repayments (812) (862)Proceeds from Bank Loan 0 0Transfers from Statutory Reserves 2,600 1,230Transfers from Statutory Reserves (St Kildas Edge) 0 2,500Transfers from Sustainable Transport General Reserve 275 640Transfers (to) Sustainable Transport General Reserve (385) (442)Transfers from Remediation General Reserve 0 3,000Transfers (to) / from Southport NH General Reserve 0 3,000Transfer (to) General Reserves - Accom Strategy 0 (350)Transfers from General Reserve - Accom Strategy 4,500 4,000Transfers from General Reserve Port Melbourne Hub 0 120Transfer (to) General Reserve - Council Initiative (1,000) (3,000)Budget Surplus/ (Deficit) 518 9Carry Over (Deficit)/Surplus (498) 353Accumulated Budget Surplus/(Deficit) 20 362

STANDARD STATEMENT OFA-1 STRATEGIC RESOURCE PLAN FINANCIAL PERFORMANCEFor the years ended 30 June 2006 - 2010

06/07 07/08 08/09 09/10 10/11$'000 $'000 $'000 $'000 $'000

Revenues from ordinary activitiesRates 66,986 71,675 75,976 80,534 85,366Government Grants 7,288 7,288 7,288 7,288 7,288Open Space Contributions 1,415 1,415 1,415 1,415 1,415Capital Grants 1,647 250 250 250 250Interest 1,050 1,050 1,050 1,050 1,050Net Parking Income 21,177 21,706 22,249 22,805 23,375Other income 19,415 19,729 21,416 21,128 21,864Total revenues 118,977 123,113 129,644 134,470 140,608

Expenses from ordinary activitiesEmployee Costs 38,697 40,245 41,855 43,529 45,271Contract Services 32,063 33,185 34,346 35,548 36,792Materials and Other Expenses 18,647 19,113 19,591 20,081 20,583Professional Services 3,153 3,200 3,248 3,297 3,346Borrowing Costs 512 457 407 357 307Depreciation 11,492 11,692 11,892 12,092 12,292Total expenditure 104,564 107,893 111,340 114,905 118,591

Net Surplus (Deficit) from Operations 14,413 15,221 18,304 19,565 22,017

CONVERSION TO CASHLess cash costs not included 06/07 07/08 08/09 09/10 10/11in the Operating Result $'000 $'000 $'000 $'000 $'000

Works Program 27,962 22,425 20,205 20,455 19,355Capital Expenditure 2,356 2,700 2,850 3,000 3,150Additional capital expenditure 4,000 1,700 1,700 1,700 2,700Loan Repayments 862 917 967 1,017 1,067Transfers To/(From) Reserves (9,283) (2,285) 715 2,300 2,300Sub Total 25,897 25,457 26,437 28,472 28,572

Plus non cash costs includedin Operating but not surplus resultDepreciation 11,492 11,692 11,892 12,092 12,292

Surplus / (Deficit) for year 9 1,456 3,760 3,186 5,737Accumulated position Brought Forward 353 362 1,818 5,577 8,763Surplus / ( Deficit) Carried Forward 362 1,818 5,577 8,763 14,501

C:\Documents and Settings\kraynor\Local Settings\Temporary Internet Files\OLK8C\[Statement of Financial Position - 06-07 - 10-11.xls]Bal Sheet - 0607

STANDARD STATEMENT OFA-2 STRATEGIC RESOURCE PLAN FINANCIAL POSITIONAs at 30 June 2007 - 2011

2006/07 2007/08 2008/09 2009/10 2010/11$'000 $'000 $'000 $'000 $'000

ASSETS

Current AssetsCash assets 14,074 13,245 17,719 23,204 31,241Receivables 9,368 9,368 9,368 9,368 9,368Accrued income 614 614 614 614 614Prepayments 1,287 1,287 1,287 1,287 1,287Total Current Assets 25,343 24,514 28,988 34,473 42,510

Non Current AssetsOther financial assets 5 5 5 5 5Receivables 2,617 2,617 2,617 2,617 2,617Property, infrastructure, plant and equipment 1,454,039 1,469,172 1,482,035 1,495,098 1,508,011Total Non Current Assets 1,456,661 1,471,794 1,484,657 1,497,720 1,510,633

Total Assets 1,482,004 1,496,308 1,513,645 1,532,193 1,553,143

LIABILITIES

Current LiabilitiesPayables 6,212 6,212 6,212 6,212 6,212Trust funds 471 471 471 471 471Employee benefits 3,107 3,107 3,107 3,107 3,107Interest bearing liabilities 917 975 1,036 1,102 1,171Provisions 57 57 57 57 57Total Current Liabilities 10,764 10,822 10,883 10,949 11,018

Non Current LiabilitiesEmployee benefits 4,092 4,092 4,092 4,092 4,092Interest bearing liabilities 6,852 5,877 4,840 3,739 2,568Total Non Current Liabilities 10,944 9,969 8,932 7,831 6,660

Total Liabilities 21,708 20,791 19,816 18,779 17,678

Net Assets 1,460,296 1,475,517 1,493,829 1,513,414 1,535,465

EQUITY

Accumulated surplus 579,169 596,676 614,273 631,557 651,309Asset Revaluation Reserve 876,545 876,545 876,545 876,545 876,545Other Reserves 4,582 2,297 3,012 5,312 7,612Equity 1,460,296 1,475,518 1,493,830 1,513,414 1,535,466

C:\Documents and Settings\kraynor\Local Settings\Temporary Internet Files\OLK8C\[Statement of Financial Position - 06-07 - 10-11.xls]Bal Sheet - 0607

STANDARD STATEMENT OFA-3 STRATEGIC RESOURCE PLAN CASH FLOWSFor the years ending 30 June 2007 - 2011

06/07 07/08 08/09 09/10 10/11$'000 $'000 $'000 $'000 $'000

Cash flows from operating activitiesReceipts from ratepayers (ie. rates) 66,986 71,676 75,976 80,534 85,366Payments to suppliers (inclusive of GST) (42,214) (40,172) (41,421) (42,715) (44,055)Net cash inflow (outflow) from customers/suppliers 24,772 31,504 34,555 37,820 41,311

Parking Fees & Fines 22,236 22,791 23,361 23,945 24,544Government Grants (inclusive of GST) 7,288 7,288 7,288 7,288 7,288Contributions 1,415 1,415 1,415 1,415 1,415Capital Grants 1,647 250 250 250 250Interest received 1,050 1,050 1,050 1,050 1,050Other receipts (inclusive of GST) 21,357 21,702 23,558 23,241 24,050Net GST refund 2,386 2,492 2,464 2,640 2,717Payments to employees (38,697) (40,245) (41,855) (43,529) (45,271)Borrowing costs (512) (457) (407) (357) (307)Other payments (21,596) (20,876) (21,482) (22,105) (22,746)Net cash inflow (outflow) from operating activities 21,346 26,914 30,197 31,658 34,301

Cash flows from investing activitiesPayments for property, plant and equipment (34,318) (26,825) (24,755) (25,155) (25,196)Proceeds from sale of investments 0 0 0 0 0Proceeds from sale of property, plant and equipment 0 0 0 0 0Net cash inflow (outflow) from investing activities (34,318) (26,825) (24,755) (25,155) (25,196)

Cash flows from financing activitiesProceeds from borrowings 0 0 0 0 0Repayment of borrowings (863) (918) (968) (1,018) (1,068)Net cash inflow (outflow) from financing activities (863) (918) (968) (1,018) (1,068)

Net increase (decrease) in cash held (13,835) (829) 4,474 5,485 8,037Cash at the beginning of the year 27,909 14,074 13,245 17,719 23,204Cash at the end of the year 14,074 13,245 17,719 23,204 31,241

Reconciliation of Operating Result and Net Cash Flows from Operating Activities for the year ending 30 June

Net surplus/(deficit) from operations 14,413 15,221 18,304 19,565 22,017

Depreciation and amortisation 11,492 12,000 12,200 12,400 12,600Profit (loss) on sale of property, plant and equipment 0 0 0 0 0Net movement in current assets and liabilities (4,559) (307) (307) (307) (316)Net cash inflow (outflow) from operating activities 21,346 26,914 30,197 31,658 34,301

C:\Documents and Settings\kraynor\Local Settings\Temporary Internet Files\OLK8C\[Cash Flow Statement 06-07 - 10-11.xls]c flow statem

STANDARD STATEMENT OFA-4 STRATEGIC RESOURCE PLAN CAPITAL WORKS

For the years ending 30 June 2007 - 2011

06/07 07/08 08/09 09/10 10/11Capital Works Areas $'000 $'000 $'000 $'000 $'000

Roads 5,870 6,158 5,748 5,158 5,158Drains 1,000 2,722 2,722 2,872 2,872Open Space 6,097 4,515 3,515 3,515 3,515Buildings 13,254 6,980 6,350 6,990 5,890Plant, equipment and other 1,741 2,050 1,870 1,920 1,920Total capital works 27,962 22,425 20,205 20,455 19,355

Represented by:Renewal 12,173 13,095 13,305 10,305 10,455Enhancements 11,122 8,080 5,450 9,050 7,950New assets 4,667 1,250 1,450 1,100 950Total capital works 27,962 22,425 20,205 20,455 19,355

Property, Plant & Equipment movement 06/07 07/08 08/09 09/10 10/11Reconciliation Worksheet $'000 $'000 $'000 $'000 $'000

The movement between the previous year and the current yearin property, plant and equipment as shown in the Statement ofFinancial Position links to the net of the following items:

Total capital works 27,962 22,425 20,205 20,455 19,355Total capital expenditure 6,356 4,400 4,550 4,700 5,850Asset revaluation movement - - - - -Depreciation and amortisation (11,492) (11,692) (11,892) (12,092) (12,292)Written down value of assets sold - - - - -Net movement in property, plant & equipment 22,826 15,133 12,863 13,063 12,913

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