Long Term Financial Plan - irwin.wa.gov.au · Shire of Irwin - Long Term Financial Plan 2018-2028_Rev0 Page| 3 Table of Contents 1 Introduction 4 2 Our Integrated Planning Framework

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Shire of Irwin

Long Term Financial Plan 2018 – 2028

March 2019

Shire of Irwin - Long Term Financial Plan 2018-2028_Rev0 Page| 2

Document Control

Document No. Date Originated Previous Version

NCR131982 25 June 2013

Revision No. Date Reviewed Adopted by Council -

Date

Adopted by Council –

Minute Ref

Rev 0 March 2019 26 March 2019 060319

Amendments

Details of amendments Reviewed/Amended

Date

Record No. Council

Minute Ref.

New Format – Review of LTFP 2018-2028 26 March 2019 NFM198604 060319


Table of Contents 1 Introduction 4

2 Our Integrated Planning Framework 4

3 Key Statistics 5

4 About the Shire 5

5 Key Services 6

6 Financial Strategies 6

6.1 Rate increases 6

6.2 Rates Modelling 6

6.3 Budget Surplus 7

6.4 Fees and Charges 7

6.5 Debt Finance 7

6.6 Cash Reserves 7

6.7 Workforce Plan 7

7 Modelling and Sensitivity Analysis 8

8 Key Assumptions 8

9 2018/19 Income and Expenditure Assumptions 8

9.1 Year 1 Income and Expenditure Assumptions 8

9.2 Years 2 to 10 Income and Expenditure Assumptions 9

9.3 10 Year Capital Plan 9

10 Risk Assessment 10

11 Financial Projections 10

12 LTFP Implementation and Review 11

13 Measuring Sustainability 12

13.1 Current Ratio 12

13.2 Operating Surplus Ratio 12

13.3 Rates Coverage Ratio 13

13.4 Debt Service Cover Ratio 13

13.5 Asset Sustainability Ratio 14

13.6 Asset Consumption Ratio 14

13.7 Asset Renewal Ratio 15

APPENDIX A - Statement of Comprehensive Income by Nature & Type

APPENDIX B - Statement of Comprehensive Income by Program

APPENDIX C - 10 Year Capital Works Program

APPENDIX D - Loan REpayment Schedule

APPENDIX E - Depreciation Schedule

APPENDIX F - Cash Reserves

APPENDIX G - Vairable Assumptions Underpinning the Plan

APPENDIX H - Key Performance Indicators


1 Introduction

The Shire of Irwin’s Long Term Financial Plan (LTFP) 2018-2028 is a high level informing strategy

that outlines the Shire’s approach to delivering infrastructure and services to the community in a

financially sustainable and affordable manner. It also demonstrates the Shire’s commitment to

managing its operations in a way that avoids unsustainable rate increases for ratepayers.

The Plan is aligned to other core planning documents by which the Shire is accountable to the

community, including the Strategic Community Plan and the Corporate Business Plan. Information

contained in other strategic plans including the Asset Management Plan and Workforce Plan, have

been used to inform the LTFP which forms the basis for preparation of the Annual Budgets.

2 Our Integrated Planning Framework

The Shire’s Integrated Planning Framework comprises of the following Plans/Programs:

Strategic Community Plan (SCP) – identifies the community’s main aspirations and priorities for

the future and outlines strategies for achieving these goals.

Corporate Plan (CP) – describes the activities we will undertake over the next four years to achieve

the agreed short-term goals and outcomes and underpin long-term aspirations.

Long Term Financial Plan (LTFP) – details the financial resources needed to enact the corporate

plan in the first four years and potential revenues and expenses for the next six years of the plan. It

serves to inform and resource all aspects of the integrated planning activities as appropriate.

Asset Management Plan (AMP) – This plan identifies and records the asset register, service levels,

activities and strategies to ensure physical assets and infrastructure are managed and maintained

over their lifecycle; and appropriately disposed of at the end of their useful life.

Integrated Workforce Plan – This plan identifies and reports on the internal capacity to meet current

and future needs of the goals and objectives of the Shire and the Community, both in capacity and

capability.

A significant component of the framework is the development of a long-term financial plan to inform

the resourcing requirements and financial capacity of a local government to achieve its stated

objectives and priorities.

The following diagram shows how the components of the Integrated Planning Framework work

together to inform and provide resources for achieving the goals of the Community Strategic Plan:


3 Key Statistics

The following table shows key statistics for the Shire of Irwin.

Distance from Perth (km) 351

Area (sq km) 2,223

Population (estimated) 3,610

Number of electors 2,700

Total Rates Levied (Budget 2017/18) $5,175,300

Total Operating Revenue (Budget 2017/18) $7,670,000

Number of FT equivalent employees 35

4 About the Shire

The Shire of Irwin includes the twin towns of Dongara and Port Denison. The latest (2017) estimated

residential population for Irwin is 3,610 people. Between the 2011 and 2016 census there has been

a continued increase in the number of people aged over 60 years living in the region and taking

advantage of the lifestyle offered in town. The Shire has experienced a growth in the resident

population of 12.2% in the decade from 2006 to 2016. Reports indicate an upward population trend

is predicted in the future with moderate growth forecast up to 2026.


The Shire of Irwin has continued to grow its tourism industry, with accommodation and food services

being the third largest industry in which local residents are employed. The highest percentage of

residents continue to work in the agriculture and fishing industry.

The Shire has continued to see growth in sporting and community groups, primarily driven by

community members in a voluntary capacity. In the twelve months prior to census night, 26% of

Shire residents spent time doing unpaid voluntary work through an organisation or group, where the

Western Australian state average for volunteering was 19%. This demonstrates a commitment by

local residents to the community in which they live.

The Shire of Irwin – A safe place to live, an exciting place to visit

and a progressive place to work.

5 Key Services

The Shire provides an extensive range of services to the community including:

Building and planning approvals

Environmental health services

Community development

Cultural events and activities

Library and tourism services

Recreation services and facilities

Housing

Community rangers

Waste collection and landfill facilities

Infrastructure - including roads, footpaths and street lighting

Parks and natural areas

6 Financial Strategies

6.1 Rate increases

The projected rates revenue increase is 3.5% (plus growth) during years 1 to 10 of the LTFP. This

represents a reduction of approximately $1.0M from the 2013-28 LTFP forecasted rates levied in

2019/20.

Reduced rate increases forecast for 2019/20 has been achieved through savings identified via

organisational restructure, reduction in staff costs and a focus on creating efficiency gains.

6.2 Rates Modelling

The proposed rates model is based on the following:

3.5% (plus growth in the rates base of 1.5%) increase in aggregate rate revenue for

2018/19.

No further concessions to be applied to residential properties.


6.3 Budget Surplus

The Shire operates on a balanced budget each year where the Net Current Assets at the end of the

financial year is effectively zero. This does not improve its financial sustainability or liquidity.

Future Councils may wish to consider this and run a budget surplus when the opportunity arises.

6.4 Fees and Charges

Discretionary Fees and Charges revenue is based upon a unit rate increase of 2.5% per annum.

6.5 Debt Finance

Borrowings will reduce from $2.36M to $1.09M from 2019 to 2029. This will place the Shire in a

strong financial position at the end of the forecast period.

This debt is for the Irwin Recreation Centre and the principal repayment becomes higher than the

interest charged from 2024/25. Throughout the ten years of this plan, $2.26M in debt is repaid.

6.6 Cash Reserves

The Shire’s drawings from cash reserves will decrease from $1.42M to $1.15M with primary growth

being due to interest earnt on the investment. Given cash reserves are designed to accumulate cash

for future capital outlays, meeting liability provisions and other allowable purposes, it is possible

during the prescribed period of the LTFP that the reserves are used as per the intent of the reserve.

It will depend on future Council decisions as to when some of these reserves are utilised.

6.7 Workforce Plan

The Shire has recently developed a draft Workforce Plan that sets out the core staffing levels,

recruitment, retention, training and resources required for the next four years as we strive to deliver

quality projects and services to the community. A well-trained, safe, respected and relevant

workforce is critical to ensuring that the Shire can efficiently undertake the tasks in accordance with

its service delivery model. The Community and Corporate strategies underpin and guide the

Workforce Plan, as it is these documents that identify the community’s needs and aspirations.

Through community consultation and engagement with Council and the Executive, we ensure an

understanding of what functions and roles are required to achieve these needs and aspirations.

The workforce plan reviews the internal and external environments and identifies the roles and

positions required, recruitment needs, management and training requirements, and addresses

emerging issues affecting our workforce. This includes internal and external factors such as budget

constraints, changing legislation, higher community expectations and continuous improvement and

compliance.

In small regional communities this is difficult to balance, and some change is inevitable. The

workforce plan ensures we are agile and flexible to meet the needs of our community. The Council

and Executive are committed to leading the organisation through a challenging environment over the

next few years as they transition from a challenging financial situation to a stable, appropriately

structured, skilled and adequately resourced workforce.


7 Modelling and Sensitivity Analysis

All modelling and analysis undertaken for the LTFP was primarily concentrated around achieving the

following:

Surplus in the Cash Flow Statement each year

Sound financial and sustainability ratios

The adopted model results in:

Cash surplus each year

Operating Surplus Ratio on target by 2019/20

Asset Sustainability Ratio on target by 2021/22

Debt Service Ratio above 3.00 by 2019/20

8 Key Assumptions

The following assumptions support the development of the new LTFP:

Years 1 to 10 - the increase per annum in aggregate rate revenue would be 3.5% (plus

growth).

The growth in the annual rate base will continue per annum to be at least 1.5% or estimated

in accordance with current growth.

Increases in revenue from rates, fees and charges should be smoothed to avoid revenue-

raising shocks to the community.

Achieving a positive accounting result from Ordinary Operating Activities.

Improving the Shire’s liquidity position over that period.

Renewing assets to maintain the associated levels of services.

Maintaining debt service levels within benchmark levels and having the capacity to borrow

when required.

Interest rates for investment funds will be a conservative 2.5% over the life of the plan,

with the dollar return adjusted according to the annual cash available for short-term

investment.

Interest rates for new borrowing will be between 4% and 6.5% over the life of the plan and

within this range consideration given to the loan term.

9 2018/19 Income and Expenditure Assumptions

9.1 Year 1 Income and Expenditure Assumptions

Year 1 of the LTFP includes the following assumptions, taking into consideration changes in yearly

budget:

The aggregate increase, in dollar terms, for rates revenue levied incorporates an equitable

increase in the differential rating categories ‘rate in the dollar’ of 3.5%.

Fees and charges are based upon the Schedule of Fees and Charges for 2018/19 and the

expected consumption of these services by the community.

The total budget for this revenue category based on confirmed grants for 2019/20.

Interest earnings calculated upon the likely cash balances during each financial year against current investment rates.


Employee costs held down until 2021/22 when increase allows for 6% each year over the

period of the Plan from 2024/25.

Materials & contracts decreased in 2019/20 due to a significant amount of one-off items of

expenditure in 2018/19. Restraint is required also in 2020/21 but from 2021/22 increases

of 2% per annum are budgeted.

Utility charges for water and electricity were calculated based upon a 2.5% increase each

year over the period of the plan. New technologies may alter this, for example, affordable

solar powered street lights may be achievable over the period of the plan.

Annual fair value assessments are based on past history and deprecation of various asset

classes.

Insurance costs based on a conservative 2.5% increase each year.

9.2 Years 2 to 10 Income and Expenditure Assumptions

Years 2 to 10 in the LTFP include the following assumptions, giving regards to changes in yearly

budgets:

The aggregate increase in rates across all categories from year 2 to 10 is 3.5%, inclusive of

any GRV and UV revaluations plus a 1.5% growth in the rate base.

Operating grants and contributions based on existing recurrent funding, allowing for

indexation of 2.5% in the life of the Plan.

Non-operating grants and contributions indexed to a level of known or likely capital

contributions from other levels of government.

Fees and Charges revenue based upon a unit rate increase of 2.5% per annum, adjusted

for expected activity growth or decline.

Interest earnings are calculated upon the likely cash balances during each financial year

and allowing for marginal increases in the base cash rate.

Employee costs held down at 2018/19 levels until 2022/23, when they are indexed

annually by both the known and expected Fair Work Commission’s Local Government

Industry Award 2010 percentage increase of between 2.5% and 3% for the life of the plan.

During the life of the plan, any movements outside the Fair Work Commission’s range

reflect changes to superannuation compulsory contribution rates, incremental pay level

increases and changes to staff establishment. From 2024/25 increased staffing levels,

particularly in the works area, have seen the budgeted wage increases rise to 6% per

annum.

Materials and contracts costs indexed at 2.0% and adjusted to reflect the cyclical

expenditure on specific operational items.

Interest expenses reflect the expected borrowing rate and debt profile. Substantial

decreases in interest expenses are indicative of the retirement of debt, whilst increases

are associated with new debt.

Utility charges based on 2.5% increase per annum against expected consumption levels.

Insurance costs indexed at a conservative rate of 2.5% per annum.

9.3 10 Year Capital Plan

The following assumptions support the development of the 10 Year Capital Plan within the LTFP:

Funding for the renewal of assets increases annually on the basis of the Shire achieving

annual renewal expenditure in Year 4 of the LTFP onwards, at a level that equates to a

range of 90% to 120% of the Shire’s annual depreciation expense. The continued


allocation of funding towards the renewal of assets and funding for maintenance and

upgrades will result in a positive investment for the community into the future.

In Years 2 to 10, the nature and type of capital expenditure are only indicative figures.

However, the Capital Plan underpins the level of expenditure in relation to resource

capabilities.

In Years 2 to 10, the amount of funding sourced from Non-Operating (Capital) grants and

contributions is based on confirmed funding agreements and/or known sources of

recurrent funding. The LTFP assumes that the current level of funding will continue to be

available for the life of the plan in relation to road related grants such as Roads to Recovery

and Main Roads.

10 Risk Assessment

The Shire has an extensive road renewal program, which to a significant extent is externally funded

on a recurrent basis from Roads to Recovery and Main Roads funding. If that funding reduces or

becomes unavailable to the Shire, then the timing and scope of the associated works will require

reassessment. The new LTFP assumes that external road funding levels will remain consistent

throughout the life of the plan.

11 Financial Projections

The financial projections in the LTFP were developed in a format that conforms to the Local

Government (Financial Management) Regulations 1996 and Australian Accounting Standards. This

format was selected as it allows projections to feed into the statutory format of the Annual Budget

and key performance measures in the LTFP to be compared with Annual Budgets and Annual

Financial Reports. The statutory schedules include:

Statement of Financial Position (Balance Sheet) and Equity Statement

Statement of Comprehensive Income

Statement of Cash Flows

Rate Setting Statement

The Statement of Comprehensive Income shows what is expected to happen during the year in terms

of revenue, expenses and other adjustments from all activities. The LTFP cycles a continual positive

movement from an existing deficit position from ordinary operating activities, to a surplus position in

2018/19 that will improve financial sustainability.

The Statement of Financial Position is a snapshot of the expected financial position of the Shire at

the end of the financial year. It reports on what is expected to be owned (assets) and what is

expected to be owed (liabilities) with the bottom line ‘Net Assets’ representing the net worth. The

assets and liabilities are separated into current and non-current, where current relates to those

assets or liabilities falling due in the next 12 months. Non-current refers to assets and liabilities that

are either recoverable or which fall due over a longer period than 12 months.

The Statement of Cash Flows shows what is expected to happen during the year in terms of cash.

The net cash provided by operating activities shows how much cash is expected to remain after

paying for the services provided to the community. This can be used to fund other activities such as

capital works and infrastructure. The information in this statement assists in the assessment of the


ability to generate cash flow and meet financial commitments as they fall due, including debt

repayments. Reflective of the current ratio, the Shire maintains the ability to meet all operating and

capital commitments during the term of the LTFP.

In the LTFP, rates assessed and determined are within the accepted range of 90 -110% and reflect

cyclical movements in cash flow from year to year. The statement is supported by schedules of:

loan borrowings and repayments

capital works

cash reserves

depreciation calculations

assumptions used in the LTFP

key performance indicators (KPIs)

12 LTFP Implementation and Review

Council will consider the content of the LTFP when preparing the Annual Budget for 2019/20 and

subsequent years, with the expectation that adopted budgets will closely align with the proposals,

underlying principles and assumptions of the LTFP.

Review of the LTFP will occur each year as budgets are prepared to account for performance

information and changing circumstances. The Shire is confident that the LTFP will allow the Shire

to set priorities within its resourcing capabilities, to sustainably deliver the assets and services

required by the community in a fiscally responsible manner.


13 Measuring Sustainability

The KPIs, target rates and results measured from the LTFP are tabled below:

13.1 Current Ratio

This is a measure of a local government’s liquidity and its ability to meet its short-term financial obligation out of unrestricted current assets.

It is measured as:

Current Assets less Restricted Assets

Current Liabilities less Current Liabilities associated with Restricted Assets

Target – greater than or equal to 1.0

2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28

Forecast 0.98 1.65 1.66 2.04 2.38 2.31 2.33 2.07 1.75 2.14

Comments:

The ratio is achieving the target range over the life of the plan after 2018/19.

13.2 Operating Surplus Ratio

This is an indicator of the extent to which revenues raised cover operational expenses only or are available for capital funding purposes. This

is measured as:

Operating Revenue less Operating Expenses Own Source Revenue (Rates)

Target – between 0% and 15%

2018/19 2019/2

0

2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28

Forecast -30.41%. 10.58% 0.46% 2.88% 1.40% 1.13% 0.62% 1.37% 2.92% 2.47%

Comments:

The ratio is trending positively from a negative in 2018/19 towards positive numbers thereafter, with some action still to be taken to normalise the ratio

from the adverse result in 2017/18. Reasonable results are achievable from 2019/20 onwards.


13.3 Rates Coverage Ratio

This is an indicator of a local government’s ability to cover its costs through its own tax revenue efforts. This is measured as:

Total Rates Revenue Total Expenses

Target – greater than or equal to 40%

2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28

Forecast 43.7% 50.1% 52.9% 54.2% 54.3% 54.9% 55.3% 56.2% 57.3% 57.7%

Comments: The ratio is trending upwards and reflects the mainly urban rate bases.

13.4 Debt Service Cover Ratio

This is an indication of a local government’s ability to produce enough cash to cover its debt payments. This is measured as:

Operating Revenue less Operating Expenses except Interest Expense and Depreciation Principal and Interest Expense

Target – greater than or equal to 2

2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28

Forecast -0.37 3.01 3.97 4.56 4.83 4.65 4.88 5.13 8.52 8.96

Comments:

The ratio is trending rapidly upwards as debt is repaid. The target is greater than or equal to 2.0 and this is achieved in 2019/20 and exceeded in

subsequent years. At this stage, no new loans are envisaged but capital requirements versus capital purchases timeframes may change that

assumption.


13.5 Asset Sustainability Ratio

This is an indicator of the extent to which assets managed by a local government are being replaced as they reach the end of their useful

lives. This is measured as:

Capital Renewal Expenditure Depreciation Expense

Target – between 90% to 110%

2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28

Forecast 58.8% 58.7% 87.3% 100.6% 98.5% 108.4% 101.5% 112.3% 117.3% 100.3%

Comments:

The ratio is trending upwards due to the renewed focus on renewal of assets, in particular, Council’s road network.

13.6 Asset Consumption Ratio

This ratio highlights the aged condition of a local government’s physical assets. This is measured as:

Depreciated Replacement Cost of Assets (Written-Down Value) Current Replacement Cost

Target – 60% or greater

2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28

Forecast 67.8% 66.6% 65.7% 63.9% 63.0% 62.3% 60.8% 60.0% 59.5% 58.0%

Comments:

The ratio is currently above the target and only has a movement of less than 20%. It is at these levels due to real depreciation rates based on the costs

of the road network. Realistic replacement costs have been determined based on the age of assets.


13.7 Asset Renewal Ratio

This ratio indicates whether the local government has the financial capacity to fund asset renewal at continued existing service levels. This is

measured as:

Net Present Value of Planned Renewal Expenditure over 10 yrs

Value of Asset Management Plan Projections over 10 yrs

Target – between 95% and 105%

2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2026/27

Forecast 90.6%

Comments:

The ratio is trending towards the target for 2018/19. Subsequent ratios haven’t been calculated due to the absence of financial planning beyond 2026/27.

APPENDIX A

Statement of Comprehensive Income by Nature and Type

2018 / 2019 2019 / 2020 2020 / 2021 2021 / 2022 2022 / 2023 2023 / 2024 2024 / 2025 2025 / 2026 2026 / 2027 2027 / 2028

$000s $000s $000s $000s $000s $000s $000s $000s $000s $000sINCOME: REVENUES FROM ORDINARY ACTIVITIESEXCLUDING PROFIT ON ASSET DISPOSAL, NON-OPERATING GRANTS, SUBSIDIES & CONTRIBUTIONS

5,175 5,434 5,706 5,991 6,291 6,605 6,935 7,282 7,646 8,029642 658 674 691 709 726 744 763 782 802

1,620 1,661 1,702 1,745 1,788 1,833 1,879 1,926 1,974 2,0230 0 0 0 0 0 0 0 0 0

124 127 130 134 137 140 144 147 151 155150 154 158 162 166 170 174 178 183 187

7,711 8,033 8,370 8,722 9,090 9,474 9,876 10,297 10,736 11,196

EXPENDITURE: EXPENSES FROM ORDINARY ACTIVITIESEXCLUDING LOSS ON ASSET DISPOSAL

(3,274) (2,669) (2,669) (2,669) (3,049) (3,426) (3,632) (3,849) (4,080) (4,325)(3,769) (3,224) (3,114) (3,176) (3,240) (3,304) (3,371) (3,438) (3,507) (3,577)

(401) (411) (421) (432) (443) (454) (465) (477) (489) (501)(3,837) (3,968) (4,008) (4,198) (4,254) (4,257) (4,464) (4,591) (4,658) (4,874)

(176) (192) (179) (165) (151) (138) (126) (112) (97) (86)(178) (182) (192) (201) (211) (222) (233) (245) (257) (270)(199) (203) (211) (220) (228) (237) (247) (257) (267) (278)

(11,834) (10,850) (10,794) (11,060) (11,576) (12,038) (12,537) (12,969) (13,354) (13,910)

(4,123) (2,817) (2,424) (2,339) (2,486) (2,564) (2,661) (2,672) (2,618) (2,714)

2,549 3,392 2,450 2,511 2,574 2,638 2,704 2,772 2,841 2,91282 0 0 0 0 0 0 0 0 0

(65) 0 0 0 0 0 0 0 0 02,566 3,392 2,450 2,511 2,574 2,638 2,704 2,772 2,841 2,912

(1,557) 575 26 173 88 74 43 100 223 198

1 3,350 3,800 101 4,000 3,800 101 3,900 4,300 101

Total Other Comprehensive Income 1 3,350 3,800 101 4,000 3,800 101 3,900 4,300 101

TOTAL COMPREHENSIVE INCOME (1,556) 3,925 3,826 274 4,088 3,874 144 4,000 4,523 299

Other Comprehensive IncomeChanges in Valuation of non-current assets

Operating Grants, Subsidies & Contributions

Interest EarningsOther Revenue

Total Revenue

Employee Costs

Fees & ChargesService Charges

Profit on Asset Disposals

DepreciationInterest ExpensesInsuranceOther Expenditure

Shire of Irwin Long Term Financial Plan 2018-2028 Statement of Comprehensive Income by Nature and Type

Rates

Loss on Asset Disposals

NET RESULT

Materials & ContractsUtilities

Sub-total

Sub-total

Total Expenditure

Non-Operating Grants, Subsidies & Contributions

APPENDIX B

Statement of Comprehensive Income by Program

2018 / 2019 2019 / 2020 2020 / 2021 2021 / 2022 2022 / 2023 2023 / 2024 2024 / 2025 2025 / 2026 2026 / 2027 2027 / 2028

$000s $000s $000s $000s $000s $000s $000s $000s $000s $000s

INCOME: REVENUES FROM ORDINARY ACTIVITIESEXCLUDING PROFIT ON ASSET DISPOSAL AND NON-OPERATING GRANTS, SUBSIDIES & CONTRIBUTIONS

0 0 0 0 0 0 0 0 0 05,571 5,742 5,983 6,234 6,497 6,772 7,059 7,360 7,674 8,003

321 331 345 359 374 390 407 424 442 461Health 27 28 29 30 31 33 34 36 37 39Education and Welfare 18 19 19 20 21 22 23 24 25 26Housing 283 292 304 317 330 344 359 374 390 407Community Amenities 846 872 909 947 987 1,028 1,072 1,118 1,165 1,215Recreation and Culture 254 262 273 284 296 309 322 336 350 365

150 155 161 168 175 182 190 198 207 215245 253 263 274 286 298 310 324 337 352

79 81 85 88 92 96 100 104 109 1137,794 8,033 8,370 8,722 9,090 9,474 9,876 10,297 10,736 11,196

EXPENDITURE: EXPENSES FROM ORDINARY ACTIVITIESEXCLUDING LOSS ON ASSET DISPOSAL AND FINANCE COSTS

(394) (364) (362) (371) (388) (404) (421) (435) (448) (467)(196) (181) (180) (185) (193) (201) (209) (216) (223) (232)(704) (651) (647) (663) (694) (722) (752) (778) (801) (834)

Health (151) (139) (139) (142) (149) (155) (161) (167) (172) (179)Education and Welfare (119) (110) (110) (112) (117) (122) (127) (132) (135) (141)Housing (533) (493) (490) (502) (526) (547) (569) (589) (606) (632)Community Amenities (1,416) (1,309) (1,302) (1,334) (1,396) (1,452) (1,512) (1,564) (1,611) (1,678)Recreation and Culture (3,234) (2,822) (2,816) (2,899) (3,051) (3,187) (3,334) (3,463) (3,581) (3,745)

(4,182) (3,847) (3,823) (3,923) (4,110) (4,279) (4,459) (4,616) (4,757) (4,954)(537) (496) (494) (506) (529) (551) (573) (593) (611) (636)(275) (254) (253) (259) (271) (282) (294) (304) (313) (326)

(11,741) (10,666) (10,615) (10,895) (11,425) (11,900) (12,411) (12,857) (13,257) (13,824)

(3,947) (2,633) (2,245) (2,173) (2,335) (2,426) (2,535) (2,560) (2,521) (2,628)

GovernanceGeneral Purpose FundingLaw, Order, Public Safety

Sub-total

Other Property and ServicesTotal Revenue

TransportEconomic ServicesOther Property and Services

Shire of Irwin Long Term Financial Plan 2018-2028 Statement of Comprehensive Income by Program

Governance

Total Expenditure

General Purpose FundingLaw, Order, Public Safety

TransportEconomic Services

2018 / 2019 2019 / 2020 2020 / 2021 2021 / 2022 2022 / 2023 2023 / 2024 2024 / 2025 2025 / 2026 2026 / 2027 2027 / 2028

$000s $000s $000s $000s $000s $000s $000s $000s $000s $000s

FINANCE COSTSRecreation and Culture (176) (167) (157) (148) (138) (129) (119) (109) (97) (86)Transport 0 (25) (22) (17) (13) (9) (7) (3) 0 0

(176) (192) (179) (165) (151) (138) (126) (112) (97) (86)(11,917) (10,858) (10,794) (11,060) (11,576) (12,038) (12,537) (12,969) (13,354) (13,910)

NON-OPERATING GRANTS, SUBSIDIES, CONTRIBUTIONS1,456 942 0 0 0 0 0 0 0 01,093 2,450 2,450 2,511 2,574 2,638 2,704 2,772 2,841 2,9122,549 3,392 2,450 2,511 2,574 2,638 2,704 2,772 2,841 2,912

PROFIT / (LOSS) ON DISPOSAL OF ASSETS0 0 0 0 0 0 0 0 0 00 0 0 0 0 0 0 0 0 01 0 0 0 0 0 0 0 0 0

Health 0 0 0 0 0 0 0 0 0 0Education and Welfare 0 0 0 0 0 0 0 0 0 0Housing 0 0 0 0 0 0 0 0 0 0Community Amenities (1) 0 0 0 0 0 0 0 0 0Recreation and Culture 1 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 00 0 0 0 0 0 0 0 0 0

16 0 0 0 0 0 0 0 0 017 0 0 0 0 0 0 0 0 0

(1,557) 567 26 173 88 74 43 100 223 198

Other Comprehensive Income1 3,350 3,800 101 4,000 3,800 101 3,900 4,300 101

Total Other Comprehensive Income 1 3,350 3,800 101 4,000 3,800 101 3,900 4,300 101

TOTAL COMPREHENSIVE INCOME (1,556) 3,917 3,826 274 4,088 3,874 144 4,000 4,523 299

Changes in Valuation of non-current assets

NET RESULT

HousingTransport

Sub Total

TransportEconomic Services

Sub-total

Governance

Shire of Irwin Long Term Financial Plan 2018-2028 Statement of Comprehensive Income by Program (continued)

Other Property and ServicesSub-total

General Purpose FundingLaw, Order, Public Safety

APPENDIX C

Ten Year Capital Works Program 2018-2028

2018 / 2019 2019 / 2020 2020 / 2021 2021 / 2022 2022 / 2023 2023 / 2024 2024 / 2025 2025 / 2026 2026 / 2027 2027 / 2028

$000s $000s $000s $000s $000s $000s $000s $000s $000s $000s

DESCRIPTION OF WORK

LAND AND BUILDINGS

Land Purchased for Resale 0 0 0 0 0 0 0 0 0 0

Renewal/ Upgrade of Buildings 108 155 124 89 78 70 110 62 63 65

Replacement of Buildings 0 0 0 0 0 0 0 0 0 0

New Buildings 765 1,690 0 0 0 0 0 0 0 0

Total Land and Buildings 873 1,845 124 89 78 70 110 62 63 65

Proceeds from Sale of Land 0 0 0 0 0 0 0 0 0 0

Book Value Assets Sold 0 0 0 0 0 0 0 0 0 0

Profit / (Loss) on Sale 0 0 0 0 0 0 0 0 0 0

PLANT AND EQUIPMENTPlant & Equipment 1,034 0 645 236 92 50 190 690 759 92

Passenger Vehicles 190 288 198 254 232 254 198 288 198 254

Total Plant and Equipment 1,224 288 843 490 324 304 388 978 957 346

Proceeds of Sale 414 274 172 284 242 229 232 569 377 264



FURNITURE AND EQUIPMENTFurniture & Equipment - Irwin Recreation Centre 0 91 59 38 13 12 12 13 13 13

Furniture & Equipment 8 22 18 18 18 18 18 18 18 18

Proceeds of Sale 0 0 0 0 0 0 0 0 0 0



Shire of Irwin Long Term Financial Plan 2018 - 2028 Ten Year Capital Works Program 2018 - 2028

2018 / 2019 2019 / 2020 2020 / 2021 2021 / 2022 2022 / 2023 2023 / 2024 2024 / 2025 2025 / 2026 2026 / 2027 2027 / 2028

$000s $000s $000s $000s $000s $000s $000s $000s $000s $000s

INFRASTRUCTURE - ROADS (Would be supported by detailed schedules of road projects) Regional Road Group Projects 775 640 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800

MRWA Direct Funding Projects 47 47 47 47 47 47 47 47 47 47

MRWA Black Spot Projects 0 0 0 0 0 0 0 0 0 0

Roads to Recovery Projects 174 160 160 160 160 160 160 160 160 160

R4R Road Construction Projects 0 0 0 0 0 0 0 0 0 0

Water Bores 200 0 0 0 0 0 0 0 0 0

Local Roadworks - New 0 0 0 98 33 49 54 43 49 82

Local Roadworks - Renewal 0 350 450 750 1,000 1,250 1,250 1,250 1,250 1,250

Total Infrastructure Roads 1,196 1,197 2,457 2,855 3,040 3,306 3,311 3,300 3,306 3,339

0 0 0 0 0 0 0 0

INFRASTRUCTURE - OTHER (Would be supported by detailed schedules of projects)Other Infrastructure - Parks & Gardens 57 238 171 162 144 144 119 119 94 94

Other Infrastructure - Infrastructure 111 176 312 60 60 0 0 0 0 0

Council Projects 0 150 150 500 500 750 750 1,000 1,000 1,000

0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0

Other Infrastructure - Works 20 12 12 12 12 12 12 12 12 12

Total Infrastructure Other 188 576 645 734 716 906 881 1,131 1,106 1,106

CAPITAL WORKS TOTAL 3,489 4,019 4,146 4,224 4,189 4,616 4,720 5,502 5,463 4,887

PROCEEDS OF SALE TOTAL 414 274 172 284 242 229 232 569 377 264

BOOK VALE ASSETS SOLD TOTAL 400 274 172 284 242 229 232 569 377 264

PROFIT ON SALE 14 0 0 0 0 0 0 0 0 0

(LOSS) ON SALE 0 0 0 0 0 0 0 0 0 0

NPV RATE 5% (BELOW)0.05NPV OF CAPITAL WORKS 34,352

Shire of Irwin Long Term Financial Plan 2018 - 2028 Ten Year Capital Works Program 2018 - 2028 (continued)

APPENDIX D

Loan Repayment Schedule

2018 / 2019 2019 / 2020 2020 / 2021 2021 / 2022 2022 / 2023 2023 / 2024 2024 / 2025 2025 / 2026 2026 / 2027 2027 / 2028

$000s $000s $000s $000s $000s $000s $000s $000s $000s $000s

LOAN INTEREST REPAYMENTS

Loan 93 - Recreation Centre 172 163 155 147 138 129 119 109 97 863 3 2 1

TransportLoan 98 - Plant 25 22 17 13 9 7 3

175 191 179 165 151 138 126 112 97 86

Total Self Supporting Loans

Loan 97 - Golf Club 1 1Total Self Supporting Loans 1 1Total Interest 176 192 179 165 151 138 126 112 97 86

LOAN PRINCIPAL REPAYMENTSTotal Self Supporting Loans

Loan 97 - Golf Club 8 8 8 8 4Total Self Supporting Loans 8 8 8 8 4 0 0 0 0 0

Principal Paid 8 8 8 8 4Principal Outstanding 36 28 20 12 0

Loan 93 - Recreation Centre 79 88 96 104 113 122 132 142 154 16538 39 39 40

TransportLoan 98 - Plant 120 123 127 130 134 138 142

117 247 258 271 243 256 270 284 154 165Principal Paid 117 247 258 271 243 256 270 284 154 165

2,326 2,994 2,736 2,466 2,223 1,967 1,698 1,414 1,260 1,096

Total All Loans

Principal Paid 125 255 266 279 247 256 270 284 154 165 Principal Outstanding 2,362 3,022 2,756 2,478 2,223 1,967 1,698 1,414 1,260 1,096

Principal Outstanding

Loan 96 - Tennis Court Resurfacing

Total Council Loans

Recreation & Culture

Loan 96 - Tennis Court Resurfacing

Total Council Loans

Shire of Irwin Long Term Financial Plan 2018-2028Loan Repayment Schedule (compiled from amortisation schedules)




APPENDIX E

Depreciation Schedule

2018 / 2019 2019 / 2020 2020 / 2021 2021 / 2022 2022 / 2023 2023 / 2024 2024 / 2025 2025 / 2026 2026 / 2027 2027 / 2028

DESCRIPTION OF ASSET CLASSES $000s $000s $000s $000s $000s $000s $000s $000s $000s $000s

LAND AND BUILDINGSLand - freehold landIndependent valuation 2017 - Level 2 5,021 5,021 5,521 5,521 5,521 6,021 6,021 6,021 6,521 6,521Land and Buildings Acquisition 0 0 0 0 0 0 0 0 0 0Fair Value Adjustment 0 500 0 0 500 0 0 500 0 0Total Land - freehold land 5,021 5,521 5,521 5,521 6,021 6,021 6,021 6,521 6,521 6,521

Land - vested in and under the control of Council Independent valuation 2017 - Level 2 3,680 3,680 4,180 4,180 4,180 4,680 4,680 4,680 5,180 5,180Fair Value Adjustment 0 500 0 0 500 0 0 500 0 0Total Land - vested in and under the control of Council 3,680 4,180 4,180 4,180 4,680 4,680 4,680 5,180 5,180 5,180

Book Value of Land 8,701 9,701 9,701 9,701 10,701 10,701 10,701 11,701 11,701 11,701

Buildings - non specialisedIndependent valuation 2017 - Level 2 2,376 2,266 2,304 2,197 2,096 2,476 2,361 2,252 2,529 2,412Additions 0 0 0 0 0 0 0 0 0 0Fair Value Adjustment 150 500 400Depreciation -110 -112 -107 -102 -120 -115 -109 -123 -117 -112 Total Buildings - specialised 2,266 2,304 2,197 2,096 2,476 2,361 2,252 2,529 2,412 2,300

Buildings - specialisedIndependent valuation 2017 - Level 2 31,921 31,941 35,090 34,528 33,943 35,320 34,702 34,134 35,492 34,863- Additions after valuation less depreciation -219 Additions 873 1,845 124 89 78 70 110 62 63 65Fair Value Adjustment 2,000 2,000 2,000Depreciation -634 -696 -685 -674 -701 -689 -678 -704 -692 -680 Total Buildings - specialised 31,941 35,090 34,528 33,943 35,320 34,702 34,134 35,492 34,863 34,248

Buildings - non specialised on land vested under the control of CouncilIndependent valuation 2017 - Level 2 1,404 1,355 1,501 1,448 1,398 1,832 1,768 1,706 2,129 2,055Additions 0 0 0 0 0 0 0 0 0 0Fair Value Adjustment 200 500 500Depreciation -49 -54 -52 -51 -66 -64 -62 -77 -74 -72 Total Buildings - specialised 1,355 1,501 1,448 1,398 1,832 1,768 1,706 2,129 2,055 1,983

Book Value of Buildings 35,562 38,894 38,174 37,437 39,627 38,830 38,092 40,149 39,329 38,531

Shire of Irwin Long Term Financial Plan 2018 - 2028Depreciation Schedule

2018 / 2019 2019 / 2020 2020 / 2021 2021 / 2022 2022 / 2023 2023 / 2024 2024 / 2025 2025 / 2026 2026 / 2027 2027 / 2028

$000s $000s $000s $000s $000s $000s $000s $000s $000s $000s

PLANT AND EQUIPMENT- Independent Valuation 2016 - level 3 1,386 2,899 2,556 2,831 2,753 2,487 2,248 2,197 2,287 2,515- Additions after valuation less depreciation 1,094 0 0 0 0 0 0 0 0 0Plant & Equipment Acquisition 1,224 288 843 490 324 304 388 978 957 346Fair Value Adjustment 0 100 100 100Plant & Equipment Disposal -400 -274 -172 -284 -242 -229 -232 -569 -377 -264 Total Plant & Equipment 3,304 2,913 3,227 3,137 2,835 2,562 2,504 2,606 2,867 2,697Depreciation -405 -357 -396 -385 -347 -314 -307 -319 -351 -331 Book Value of Vehicles Plant & Equipment 2,899 2,556 2,831 2,753 2,487 2,248 2,197 2,287 2,515 2,367

FURNITURE AND EQUIPMENT- Management valuation 2016 - Level 3 483Furniture and Equipment Acquired 0 92 59 38 13 12 12 13 13 13Fair Value Adjustment 1 1 1 1Furniture and Equipment Disposed 0 0 0 0 0 0 0 0 0 0Total Furniture & Equipment 484 479 442 393 327 274 232 199 172 152Depreciation -97 -96 -88 -79 -65 -55 -46 -40 -34 -30 Book Value of Furniture & Equipment 387 383 354 314 262 219 186 159 138 121

INFRASTRUCTURE - RoadsIndependent Valaution 2017 - level 3 52,007 50,120 48,961 52,558 52,869 53,342 57,547 58,064 58,547 63,014Additions after revaluation less depreciation -683 -Additions 1,196 1,197 2,457 2,855 3,040 3,306 3,311 3,300 3,306 3,339Total Infrastructure 52,520 51,317 51,418 55,413 55,909 56,648 60,858 61,364 61,853 66,353Depreciation -2,400 -2,356 -2,361 -2,544 -2,567 -2,601 -2,794 -2,817 -2,840 -3,046 Fair Value Adjustment 3,500 3,500 4,000Book Value of Infrastructure - Roads 50,120 48,961 52,558 52,869 53,342 57,547 58,064 58,547 63,014 63,307

INFRASTRUCTURE - Other- Independent Valuation 2016 - level 3 4,175 4,085 4,364 4,990 5,359 5,688 6,474 6,886 7,506 8,364New Infrastructure Developed 188 576 645 734 716 906 881 1,131 1,106 1,106Total Infrastructure 4,363 4,661 5,009 5,724 6,075 6,594 7,355 8,017 8,612 9,470Depreciation -278 -297 -319 -365 -387 -420 -469 -511 -549 -603 Fair Value Adjustment 300 300 300Book Value of Infrastructure - Other 4,085 4,364 4,990 5,359 5,688 6,474 6,886 7,506 8,364 8,866

Total Assets 101,754 104,860 108,608 108,433 112,108 116,020 116,126 120,350 125,060 124,893

Total Depreciation -3,973 -3,968 -4,008 -4,198 -4,254 -4,257 -4,464 -4,591 -4,658 -4,874

Fair Value Adjustment 1 3,350 3,800 101 4,000 3,800 101 3,900 4,300 101

Shire of Irwin Long Term Financial Plan 2018 - 2028Depreciation Schedule (continued)

APPENDIX F

Cash Reserves

2018 / 2019 2019 / 2020 2020 / 2021 2021 / 2022 2022 / 2023 2023 / 2024 2024 / 2025 2025 / 2026 2026 / 2027 2027 / 2028

$000s $000s $000s $000s $000s $000s $000s $000s $000s $000s

LEAVE ENTITLEMENT RESERVE197,800 201,800 206,845 212,016 217,317 222,749 228,318 234,026 239,877 245,874

Transfer to Reserve 4,000 5,045 5,171 5,300 5,433 5,569 5,708 5,851 5,997 6,147 - - - - - - - - - -

201,800 206,845 212,016 217,317 222,749 228,318 234,026 239,877 245,874 252,021

PLANT REPLACEMENT RESERVE87,100 107,600 110,290 113,047 115,873 118,770 121,740 124,783 127,903 131,100

Transfer to Reserve 151,700 2,690 2,757 2,826 2,897 2,969 3,043 3,120 3,198 3,278 (131,200) - - - - - - - - - 107,600 110,290 113,047 115,873 118,770 121,740 124,783 127,903 131,100 134,378

ASSET MANAGEMENT RESERVE778,700 259,300 265,783 272,427 279,238 286,219 293,374 300,709 308,226 315,932


SANITATION RESERVE89,700 1,500 1,538 1,576 1,615 1,656 1,697 1,740 1,783 1,828

Transfer to Reserve 1,800 38 38 39 40 41 42 43 45 46 (90,000) - - - - - - - - -

1,500 1,538 1,576 1,615 1,656 1,697 1,740 1,783 1,828 1,873

COASTAL MANAGEMENT RESERVE134,600 102,300 104,858 107,479 110,166 112,920 115,743 118,637 121,603 124,643


TOURISM AND AREA PROMOTION RESERVE23,700 24,200 24,805 25,425 26,061 26,712 27,380 28,065 28,766 29,485

Transfer to Reserve 500 605 620 636 652 668 685 702 719 737 - - - - - - - - - -

24,200 24,805 25,425 26,061 26,712 27,380 28,065 28,766 29,485 30,222

Transfer FromReserveBalance 30 June

Shire of Irwin Long Term Financial Plan 2018-2028Cash Reserves

Opening Balance

Transfer From ReserveBalance 30 June

Opening Balance

Opening Balance



Opening Balance

Opening Balance


Opening Balance


2018 / 2019 2019 / 2020 2020 / 2021 2021 / 2022 2022 / 2023 2023 / 2024 2024 / 2025 2025 / 2026 2026 / 2027 2027 / 2028

$000s $000s $000s $000s $000s $000s $000s $000s $000s $000s

RECREATION CENTRE EQUIPMENT RESERVE50,600 51,600 52,890 54,212 55,568 56,957 58,381 59,840 61,336 62,870

Transfer to Reserve 1,000 1,290 1,322 1,355 1,389 1,424 1,460 1,496 1,533 1,572 - - - - - - - - - -

51,600 52,890 54,212 55,568 56,957 58,381 59,840 61,336 62,870 64,441

PORT DENISON FORESHORE DEVELOPMENT RESERVE275,000 180,500 185,013 189,638 194,379 199,238 204,219 209,325 214,558 219,922


TOTAL RESERVES1,637,200 928,800 952,020 975,200 998,960 1,023,314 1,048,277 1,073,864 1,100,090 1,126,972

Transfer to Reserve 182,800 23,220 23,180 23,760 24,354 24,963 25,587 26,226 26,882 27,554 (891,200) - - - - - - - - - 928,800 952,020 975,200 998,960 1,023,314 1,048,277 1,073,864 1,100,090 1,126,972 1,154,526

Opening Balance


Shire of Irwin Long Term Financial Plan 2018-2028Cash Reserves (continued)

Opening Balance

Transfer From ReserveTotal Reserves 30 June


Opening Balance

APPENDIX G

Variable Assumptions Underpinning the Plan

2018 / 2019 2019 / 2020 2020 / 2021 2021 / 2022 2022 / 2023 2023 / 2024 2024 / 2025 2025 / 2026 2026 / 2027 2027 / 2028

Rates - Annual Increases 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5%Rates - Growth in Rate Base 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5%Operating Grants, Subsidies and Contributions 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%Non-operating Grants, Subsidies, Contbns 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%Fees and Charges 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%Service ChargesInterest Yield 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%Other revenue 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%

Employee Costs 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 6.0% 6.0% 6.0% 6.0%Materials and Contracts 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%Utility Charges 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%Depreciation on Non-current Assets (see below)Interest Expense (based on estimated borrowings) 5.2% 5.2% 5.2% 5.2% 5.2% 5.2% 5.2% 5.2% 5.2% 5.2%Insurance Expense 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%Other Expenditure 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

Average Depreciation - Buildings 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%Average Depreciation - Other 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0%Average Depreciation - Infrastructure Roads 6.7% 6.7% 6.7% 6.7% 6.7% 6.7% 6.7% 6.7% 6.7% 6.7%

2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%Average Depreciation - Infrastructure Other

CAPITAL ASSETS

OPERATING EXPENSES

OPERATING REVENUES

Shire of Irwin Long Term Financial Plan 2018-2028Variable Assumptions Underpinning the Plan

APPENDIX H

Key Performance Indicators

2018 / 2019 2019 / 2020 2020 / 2021 2021 / 2022 2022 / 2023 2023 / 2024 2024 / 2025 2025 / 2026 2026 / 2027 2027 / 2028

$000s $000s $000s $000s $000s $000s $000s $000s $000s $000s

OPERATING SURPLUS RATIO10,260 11,425 10,820 11,233 11,664 12,113 12,581 13,069 13,577 14,108

Less Operating Exp incl interest & depreciation (11,834) (10,850) (10,794) (11,060) (11,576) (12,038) (12,537) (12,969) (13,354) (13,910) 1,574- 575 26 173 88 74 43 100 223 198 5,175 5,434 5,706 5,991 6,291 6,605 6,935 7,282 7,646 8,029

-30.41% 10.58% 0.46% 2.88% 1.40% 1.13% 0.62% 1.37% 2.92% 2.47%

CURRENT RATIO2,003 2,757 2,804 3,243 3,640 3,575 3,609 3,339 3,001 3,411

Less Restricted Assets (929) (952) (975) (999) (1,023) (1,048) (1,074) (1,100) (1,127) (1,155) = Net Current Assets 1,074 1,805 1,829 2,244 2,616 2,526 2,535 2,238 1,874 2,256

1,505 1,543 1,581 1,621 1,661 1,703 1,745 1,789 1,834 1,880 (413) (446) (482) (520) (562) (607) (655) (708) (764) (826)

1,092 1,097 1,099 1,100 1,099 1,096 1,090 1,081 1,069 1,054

Ratio Target > or = to 1.0 0.98 1.65 1.66 2.04 2.38 2.31 2.33 2.07 1.75 2.14

413 446 482 520 562 607 655 708 764 826

RATES COVERAGE RATIO5,175 5,434 5,706 5,991 6,291 6,605 6,935 7,282 7,646 8,029

Divided by Total Expenses 11,834 10,850 10,794 11,060 11,576 12,038 12,537 12,969 13,354 13,910

Ratio Target > or = to 40% 43.7% 50.1% 52.9% 54.2% 54.3% 54.9% 55.3% 56.2% 57.3% 57.7%

DEBT SERVICE COVERAGE RATIO

= Operating Revenue 7,711 8,033 8,370 8,722 9,090 9,474 9,876 10,297 10,736 11,196 Less Operating Expenses (11,834) (10,850) (10,794) (11,060) (11,576) (12,038) (12,537) (12,969) (13,354) (13,910) Except Interest Expense and Depreciation 4,013 4,160 4,187 4,363 4,405 4,395 4,590 4,703 4,755 4,960 = OSBID (110) 1,344 1,763 2,024 1,919 1,831 1,929 2,031 2,136 2,245 Divided by Principal and Interest 301 447 445 444 398 394 396 396 251 251

Ratio Target > or = 2 -0.3652 3.0081 3.9655 4.5629 4.8259 4.6512 4.8765 5.1339 8.5242 8.9586

Operating Surplus before Interest & Depreciation

Divided by Current Liabilities lessCurrent Liabilities ass'd with Restricted Assets

Current Assets

Assumed Leave Cash Reserve same as Provision

= Net Operating SurplusDivided by Own Source Revenue (Rates)

Ratio Target - (+ve) Between 0% and 15%

Total Rates Revenue

Shire of Irwin Long Term Financial Plan 2018-2028Key Performance Indicators

Operating Revenue

= Net Current Liabilities

2018 / 2019 2019 / 2020 2020 / 2021 2021 / 2022 2022 / 2023 2023 / 2024 2024 / 2025 2025 / 2026 2026 / 2027 2027 / 2028

$000s $000s $000s $000s $000s $000s $000s $000s $000s $000s

ASSET SUSTAINABILITY RATIO2,257 2,329 3,501 4,224 4,189 4,616 4,530 5,154 5,463 4,887

Divided by Depreciation Expense 3,837 3,968 4,008 4,198 4,254 4,257 4,464 4,591 4,658 4,874

Ratio Target 90% to 100% 58.8% 58.7% 87.3% 100.6% 98.5% 108.4% 101.5% 112.3% 117.3% 100.3%

ASSET CONSUMPTION RATIO101,754 104,860 108,608 108,433 112,108 116,020 116,126 120,350 125,060 124,893

Divided by Current Replacement Cost 150,000 157,369 165,315 169,640 177,829 186,245 191,066 200,468 210,231 215,219

Ratio Target 50% to 75% 67.8% 66.6% 65.7% 63.9% 63.0% 62.3% 60.8% 60.0% 59.5% 58.0%

Assumed Current Replacement Cost 150,000 New Assets Acquired at Cost - 4,019 4,146 4,224 4,189 4,616 4,720 5,502 5,463 4,887 Depreciation on New Assets - - - - - - - - - Fair Value Revaluation (6% - 3-yearly) 1 3,350 3,800 101 4,000 3,800 101 3,900 4,300 101 New Current Replacement Cost 150,000 157,369 165,315 169,640 177,829 186,245 191,066 200,468 210,231 215,219

ASSET RENEWAL FUNDING RATIO31,119 - - - - - - - - -

Divided by NPV of Asset Mgment Plan Projections 34,352 - - - - - - - - -

Ratio Target 95% to 105% 90.6%

Shire of Irwin Long Term Financial Plan 2018-2028Key Performance Indicators (continued)

Capital Renewal Expenditure

Net Present Value of Planned Renewal Expenditure

Deprec'd Replace't Cost Assets (Written Down Value)

Documents

Long Term Financial Plan - irwin.wa.gov.au · Shire of Irwin - Long Term Financial Plan 2018-2028_Rev0 Page| 3 Table of Contents 1 Introduction 4 2 Our Integrated Planning Framework