RESOURCING STRATEGY

Long term Financial Plan2021/22

www.georgesriver.nsw.gov.au

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Statement of acknowledgement of the Biddegal PeopleGeorges River Council acknowledges that the Biddegal people of the Eora Nation are the traditional inhabitants and custodians of all land and water in which the Georges River region is situated.

Council recognizes Aboriginal people as an integral part of the Georges River community and highly values their social and cultural contributions.

Georges River Council is committed to showing respect for Aboriginal people as Australia’s First Peoples. Council has adopted the practice of acknowledging the Traditional custodians of Country at events, ceremonies, meetings and functions.

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Statement of acknowledgement of the Biddegal People ...................2Council values and statements..........................................................6Community Vision Statement ............................................................6Vision .................................................................................................6Mission ..............................................................................................6Our values .........................................................................................6Introduction ........................................................................................8Our 6 Pillars .......................................................................................8Background – Legislative Framework ...............................................9Executive Summary...........................................................................10Financial Governance Principles .......................................................11Financial Sustainability Challenges ...................................................12Planning for our Future – Rates Consultation 2020 ..........................16Planning for our Future – New Rates 2021 .......................................18Local Infrastructure Contributions and Projects.................................20Socio-Economic Snapshot ................................................................22Financial Models Overview................................................................24Detailed Financial Models .................................................................26

Contents

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Community Vision StatementIn 2021, the Georges River area is known as a clean, green and welcoming place with beautiful and accessible bushland and waterways.

It offers a diversity of active, connected places and heritage areas that we plan for in collaboration with our community.

People attend many events and activities and can access a choice of housing and a mix of jobs and economic opportunities near where they live.

Council values and statements

VisionA progressive, environmentally and culturally rich community enjoying a unique lifestyle.

MissionA leading, people-focused organisation delivering outstanding results for our community and city.

Values

UnitedWe will work collaboratively as one team with common purpose and respect

ProfessionalWe will act with integrity and seek opportunities to learn and grow

HonestWe will be open and truthful with each other and our community

AccountableWe will own our decisions and actions as we strive for excellence

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IntroductionThe Resourcing Strategy forecasts Council’s ability to deliver assets and services to the community over the next 10 years in line with the adopted Community Strategic Plan 2018-2028.

Background - Legislative FrameworkLike all Councils, Georges River Council operates under the Local Government Act 1993 (the Act). The Act requires us to produce a suite of documents as part of an Integrated Planning and Reporting Framework.

The Framework brings together Council's various plans, giving both Council and the community a clear understanding of how each of the plans interact. This process maximises Council efforts to plan for the future strategically and holistically.

This Resourcing Strategy has been developed alongside our first-ever Community Strategic Plan, which is based on extensive community engagement during 2017.

The Community Strategic Plan 2018-2028 contains the community’s priorities and aspirations as well as the strategies for achieving these goals.

Our Delivery Program sets out the proposed actions to achieve the goals and strategies in the Community Strategic Plan. The Delivery Program runs for four years to align with the local government election cycle. We are now commencing the final year of this program.

We have also prepared a one-year Operational Plan to show the specific actions and budgets that we propose for 2021/22, consistent with the Delivery Program.

DELIVERY PROGRAM

4 YEARS

OPERATIONAL PLAN1 YEAR

ANNUAL REPORT

PERPETUAL MONITORING AND REVIEW

RESOURCING STRATEGY

Contains the Workforce Management Plan, Digital Resource Management

Plan, Asset Management Plan and Long Term

Financial Plan

COMMUNITY ENGAGEMENT

COMMUNITY STRATEGIC

PLAN10 + YEARS

Our 6 Pillars1. A protected environment and green open spaces.2. Quality, well planned development.3. Active and accessible places and spaces.4. A diverse and productive economy.5. A harmonious and proud community with strong

social services and infrastructure.6. Leadership and transparency.

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Executive SummaryThis year will be a critical year for securing Council’s future. The 2021/22 Budget has been prepared assuming Council receives the approval from the NSW Government for the Special Rate Variation and also implements a single, fair, equitable and consistent rating system for the entire Georges River Area.

The 2021/22 budget is an important year for Council and the community. The budget has been prepared with a focus on the feedback received from the Community during our New Rates 2021 consultation. It has incorporated the service standards that are expected, identified savings, and assumes the special rate variation.

Without the special rate variation, Council’s future would be at risk, with immediate staff and service reductions being required. The 2021/22 budget is a considered budget that places Council on the path to securing its long-term financial sustainability in future years.

Model 2 of the Long Term Financial Plan (LTFP) has been built using the budget for 2021/22 as the base and presents a financial projection of the next ten years.

Model 1 highlights to forecast of Council should no action be taken to resolve the ongoing operating deficits.

The 10 year forecast illustrates the operating results and is based on projected known events. These projections form a roadmap of the operating results, which provides Council an opportunity to:

• Assess different courses of corrective action and quantify the potential outcomes

• Ensure sustainability through positive net results

• Structure the operations, based on affordability and financial sustainability.

Over the past three financial years, the LTFP has illustrated Council’s poor and deteriorating financial outlook over the 10 year period. Prior to the events of COVID-19, Council had an adopted forecasted operating deficit (before capital grants) for 2021/22 of $12 million.

Failure to address the unsustainable financial position places Council in contravention of S.8b of the Local Government Act 1993 and will compel Council to cut and/or reduce services to ease the unfavourable gap between income and expenditure.

Financial Governance Principles • Councils should have regard to achieving

intergenerational equity, including ensuring the following:

- policy decisions are made after considering their financial effects on future generations,

- the current generation funds the cost of its services.

In addition to the legislated principles of sound financial management, Council’s actions and strategies are balance on the following principles; Sustainability, Affordability, Accountability and Growth.

SustainabilityEnsure the long term sustainability of Georges River Council – this involves putting in place measures to fortify its income base (without depending on one-off receipts of grants or contributions) and managing its expenditure to optimum levels, maintain positive Net Operating Results.

AffordabilityOperate within the realms of affordability by structuring expenditure within the boundaries of income received. Plan and execute programs and projects after taking into account the affordability of the long term ongoing impact on future revenue and expenditure.

AccountabilityContinue to be accountable to ratepayers for optimum management of income generated and expenditure incurred. Continue to be accountable to ratepayers for optimum management of Council assets and resources.

GrowthApproach all activities from the perspective of constantly improving the quality of services provided Deliver services that benefit the larger community.

In preparing the Long Term Financial Plan (LTFP) and guiding financial decisions are the Integrated Planning and Reporting documents, the Local Government Act 1993 and financial principles.

Council conducted a program of extensive community engagement to develop Georges River's first Community Strategic Plan. The Community Strategic Plan and associated documents were adopted by Council on 25 June 2018.

The Community Strategic Plan was developed around six themes or pillars which were identified in the consultation process as important to the community.

These six pillars, which underpin our future work, are:1. A protected environment and green open spaces2. Quality, well planned development3. Active and accessible places and spaces4. A diverse and productive economy5. A harmonious and proud community with strong

social services and infrastructure6. Leadership and transparency

The Community Strategic Plan is part of a suite of documents which include the Delivery Program and Operational Plan, which outlines our key actions over the next three years and annual budget, Fees and Charges. These key documents feed into the Resourcing Strategy and Council’s long-term financial plan.

The Local Government Act 1993 (the Act), outlines the principles of sound financial management in which Council is governed by. Section 8B of the Act states that:

• Council spending should be responsible and sustainable, aligning general revenue and expenses.

• Councils should invest in responsible and sustainable infrastructure for the benefit of the local community.

• Councils should have effective financial and asset management, including sound policies and processes for the following:

- performance management and reporting, - asset maintenance and enhancement, - funding decisions, - risk management practices

In preparing the draft 2021/22 Budget, continuation of savings from prior years and the deferment of projects has been required to improve the prospect of achieving financial sustainability into the future.

The approach to these decisions has been balanced, in that they have been made across all areas of Council’s operations, including employee costs, Councillor costs and community assets/services.

In order to significantly reduce the adopted operating deficit and address financial sustainability, reductions include $6 million worth of operational programs project, services and $350 million in capital projects being deferred, reduced or deleted.

Based on this approach the adopted forecast deficit of $12 million has been reduced to a projected deficit of $4.5 million. Though these measures have been introduced and the projected deficit reduced the Council’s financial results improving, depend on an increase to rates income or substantial service reductions.

Based on this outlook the implementation of Council’s financial strategies, outlined within this document, are essential in securing the sustainability of Council.

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Financial Sustainability Challenges

termination of the SRV that commenced over 10 years ago. The impact on the operating results is a loss of $2.3m income in that year, compounded each year thereafter.

In addition, Council's operating results are augmented by the value of capital grants received. These grants are for exclusive use on capital expenditure and are not to be used to fund operating expenditure. When these funds are excluded, the Operating Results show increasing negative returns each year. This means that Council, in its current form, is unable to fund its operating expenditure from the operating income it receives.

It has also been demonstrated that there is an adverse widening gap between the increases to operating income and the increases to operating expenditure each year.

There are two fundamental problems facing Council’s finances:1. Council does not generate sufficient operating

income to fund operating expenditure for its current service portfolio and program of works

2. Each year, increases in operating income are less than the increases in operating expenditure.

When reviewing the actual results of Georges River Council so far, Council has generated surpluses each year since amalgamation. However, these actual results have been favourably impacted by additional operating and capital grants received from the State Government, to assist with the transition to functioning as an amalgamated council. Despite the receipt of these additional operating grants, when capital grants are excluded, the operating results show a negative outcome.

The COVID-19 pandemic presented fresh challenges to Council’s efforts to improve its financial position, with the financial impact of the pandemic accelerating the financial deficits that were forecast in future years. Recovery is anticipated to be slow and gradual rather than an immediate bounce back.

Council has and will continue to find savings, efficiencies and implement improved operating models but without the rate income increase, deep cuts to services will be inevitable. Council’s service portfolio is complex and diverse. It provides 200 services which our community members value, and are essential to a thriving and growing community.

Georges River Council takes great pride in its role of Georges River Council takes great pride in its role of providing and maintaining high quality local services for our community. If Council is to continue to deliver the current level of services and facilities, we need to effectively plan for the future.

Following extensive consultation with our community in 2018, Council adopted its first ever Community Strategic Plan which details the community’s aspirations for the Georges River area over the next 10 years. This Plan highlights many community projects, programs, initiatives and events that require substantial funding to become a reality.

Council, in preparing the LTFP, recognised a number of challenges it will face in the near future.

The challenges, if unaddressed, will have an adverse impact on the long term financial sustainability of Council. These challenges are summarised:

• Experiencing declining profitability, amplified by the loss of income of $2.3m from the former Hurstville Council Special Rate Variation (SRV). Due to stop on 1 July 2021.

• The compounded impact of the expiring SRV results in a forecast loss of $19m from 2021/2022 to 2028/2029.

• Dramatic decline in the cash rate and the loss of investment income used to fund operations of $5m in 5 years.

• Operating performance, net of capital grant income, remains negative with the deficit increasing each year.

• Increase in Council’s Net Worth is dependent on the quantum of Capital Grants received and not on the operations being cost effective.

The operating results (actual and forecast); display a downward trend leading to increasingly negative results from 2021/22 onwards. There is a dramatic reduction in Rates income from 2021/22 onwards, due to the

If the Council’s total rate income does not increase over the next 5 years as proposed by this rate increase, we will be forced to reduce or cease many services. We will be unable to respond to the needs of future population growth which will continue to strain service quality. This will result in higher use/overuse of current assets and poorer condition standards.

In examining the financial statements relating to the former councils, over the past 10 years, there have been cumulative losses in excess of $200 million without grants and contributions.

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Financial StrategyBased on the challenges presented in this Long Term Financial Plan, Council is building on the strong foundations established to ensure the delivery of community aspirations outlined in the Community Strategic plan. To achieve this, Council will take the following steps:

1. Establish a Financial Sustainability Working Group

2. Engage with the community on Council’s discretionary service portfolio and the level of support to maintain service levels.

3. Review the rates structure to bring equity of rates charged to ratepayers

4. Seek the views of the community in applying for a Special Rate Variation that will maintain the expiring SRV and contribute towards reducing operating losses

5. Make an application to the Independent Pricing and Regulatory Tribunal (IPART) to increase Council’s rate income

6. Explore potential avenues to raise new streams of income and increase current income levels through a wider application of the user pays model

7. Explore potential savings in operating expenditure by reviewing operating processes

8. Apply strategic assets management principles, ensuring compliance with relevant legislation

9. Continue to benchmark activities and align operations where necessary, to yield optimum results

10. Introduce and implement changes in focus, to view activities as “commercial” or “non-commercial”

11. Evaluate affordability of capital projects from a “long term operating impact” point of view

12. Continue to identify and implement initiatives that improve service efficiency and productivity

13. Evaluate the feasibility of major projects from a cost/benefit perspective and understand the affordability pay-back period in respect of each

14. Focus on bridging the gap between increases in income and expenditure

15. Mitigate the impact of external factors on Council’s financial sustainability

16. Provide financial hardship support to those adversely impacted

17. Focus on works projects that are funded from externally restricted reserves.

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The amalgamation of two organisations whilst maintaining everyday services is a complex task that requires the involvement of the entire organisation and the support of the community.

Georges River Council has embraced the fresh start that the merge of the former Hurstville City and Kogarah City Councils presented, building the foundations for a strong organisation that will deliver outstanding results to our community and city. Information on Council efficiencies to date can be further explored in the Amalgamation Journey Final Report.

While Council’s income has increased and we have made savings as a result of the amalgamation of the former Kogarah and Hurstville Council in 2016, these changes have not kept pace with the increase in costs in providing services, especially as our population continues to grow.

The terms of the amalgamation specified the preservation of the rates structures of the Hurstville and Kogarah City Councils for a period of four years plus 1 year optional extension.

At the Extraordinary Council Meeting held on Monday 10 February 2020, Council considered whether to proceed with an application to Independent Pricing and Regulatory Tribunal (IPART) to introduce in 2020/21 a harmonised minimum rate, harmonised rate in the dollar and also a new Special Rate Variation (SRV) to improve Council’s financial sustainability and replace the expiration of the former Hurstville Council SRV. The SRV application was prepared to reduce Council’s operating deficit by $8 million.

At that meeting, Council considered the results of the community consultation which outlined there were more than 6,000 responses received from residents.

The consultation found that 78% of respondents were supportive of introducing a consistent minimum rate across the city and 66% supported a minimum rate increase to $965.80. Additionally, 54% of respondents were supportive of Council applying to IPART for a SRV of 8.1% plus a rate peg of 2.5%.

Planning for our Future – Rates Consultation 2020

Council resolved not to proceed with the application for the SRV or the harmonisation of rates in 2020/21 and instead to investigate staff reductions and salary savings as part of future cost saving measures.

Following the adoption of the budget in June 2020 and the presentation of the revised LTFP, Council resolved to recommence consultation with the community on a New Rates 2021 proposal.

The recommendations to Councillors in February 2020, was based on extensive community consultation that took place in October and November 2019, through face-to-face community information sessions, surveys to all rate payers and other engagement activities.

The consultation undertaken last year was comprehensive in that three options were presented to the community. The preferred option was option 1, Financially Sustainable and was developed after reviewing multiple options with a varying degree of impact, along with comparative metropolitan rating information. The preferred option is based on utilising our stable income source to close the gap between income and expenditure, along with reviewing services to improve efficiency.

The three options consulted on with the community in 2019 are outlined on the right:

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Planning for our Future – New Rates 2021Following the decision of Council in February 2020 to defer the 2020 proposal, consultation recommenced in September 2020.

The new proposal's total increase is equivalent to Council’s 2019 proposal of a permanent one-off 10.6% increase (rate peg of 2.5% and 8.1% SRV) that did not proceed. The new proposal is a permanent multi-year SRV spread over 5 years. The total Council rate income increase is 29% (inclusive of 16.5% SRV and assumed rate pegs of 2.5% per year or total of 12.5%). The proposed SRV will result in additional rate income of approximately $23 million over 5 years.

All ratepayers were provided with a brochure outlining the proposed new rating system. The brochure was comprehensive and was complimented by online videos, a rates calculator, webinars and frequently asked questions on Council’s website.

If the Council’s total rate income does not increase over the next 5 years as proposed by this rate increase, we will be forced to reduce or cease many services. We will be unable to respond to the needs of future population growth which will continue to strain service quality. This will result in higher use/overuse of current assets and poorer condition standards.

If the proposed new rating system is not approved the average residential rate would be $1,136, the average business rate would be $3,074 and the minimum rate would be $598.

Houses in the old Kogarah Council area will pay almost three times what an apartment currently pays (an average increase of $300) and apartments will drop – broadening the inequity instead of addressing it.

Houses in the old Hurstville Council area will have an average decrease of $25 and those who had a large rate increase in 2020/21 will not receive a reduction. Council has and will continue to find savings, efficiencies and implement improved operating models but without the rate income increase, deep cuts to services will be inevitable.

On 8 February 2021, Council resolved to submit the New Rates 2021 proposal to IPART. The 2021/22 Integrated Planning and Reporting documents have been prepared incorporating and guided by the New Rates 2021 proposal. The illustrations below summarise the impact of the proposed rate increase and minimum changes.

Strategic Centre

$1,500Business Other

$1,100Minimum

Georges River

$1,169Average

Current average and minimum annual rates

Georges River$1,139

Average

Hurstville$586Kogarah $967Minimum

Georges River

$3,311Average

Georges River $965.80

Minimum

Proposed 2021/22 average and minimum annual rates

Residential Residential Business

Hurstville$586Kogarah $967MinimumGeorges River

$3,087Average

Business

For the average residential ratepayer, the proposed changes will mean around 60 cents extra per week in the first year followed by $1.35 per week increases each year for the following 4 years.

For the average business ratepayer, the proposed changes will mean $4.30 extra per week in the first year followed by $5.50 per week increases each year for the following 4 years.

Current Year 2021/22 2022/23 2023/24 2024/25 2025/26

Residential average $1,139 $1,169 $1,233 $1,300 $1,372 $1,447

Residential minimumKogarah $967

$966 $990 $1015 $1,040 $1,066Hurstville $586

Business average $3,087 $3,311 $3,558 $3,822 $4,105 $4,408

Minimum for Kogarah and Hurstville CBD

Kogarah $967$1,500 $1,538 $1,576 $1,615 $1,656

Hurstville $586

Business minimum other Kogarah $967

$1,100 $1,128 $1,156 $1,185 $1,214Hurstville $586

Total council rate income increase % 2.6% 5.8% 5.8% 5.8% 5.8% 5.8%

Total council rate income increase $ $4.1 million $4.3 million $4.6 million $4.9 million $5.1 million

Former council's average rate Currrent Year 2021/22

Total council rate income increase % 2.6% 5.8%

Residential Kogarah $1,221 $1,251

Hurstville $1,081 $1,110

BusinessKogarah $3,167 $3,006

Hurstville $3,043 $3,477

Disclaimer: Houses and apartments may be on the minimum, though the majority of minimum rate properties are apartments. The averages quoted within this document have been developed from financial modelling based on current property data and land values as of 1 July 2020. A new set of land values will be supplied by the NSW Valuer General and applied from 1 July 2023. The final 2021/22 rate levies may vary due to Independent Pricing and Regulatory Tribunal (IPART) decisions and marginal movements due to model sensitivity.

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Local Infrastructure Contributions and ProjectsThe New South Wales (NSW) local infrastructure contributions (LIC) system helps provide new and growing communities with appropriate infrastructure. The NSW LIC system is regulated by the Environmental Planning and Assessment Act 1979 (the Act) and the Environmental Planning and Assessment Regulation 2000. Section 7.11 allows councils to levy contributions towards the cost of providing local infrastructure. Contributions plans set out the local infrastructure required to meet the demand from new development, and the contributions a council can levy on developers to fund the necessary land and works.

A summary of the general requirements for local infrastructure contributions is provided below:

• If councils wish to seek a contribution under s7.11 of the Act, they are required under s7.13 to prepare a contributions plan. The plan needs to establish a nexus or relationship between the expected types of development in the area and the demand for public amenities and services to meet development related infrastructure demand.

• Section 7.11 contributions are imposed by way of conditions of development consent. The requirement for a contribution is generally satisfied by paying a monetary contribution, dedicating land free of cost and works-in-kind, or all of the above as determined by the consent authority.

• For contributions plans proposing contribution rates above the relevant cap, the essential works list applies and for contributions plans with rates below the relevant cap, the essential works list does not apply.

• The contribution must be towards ‘public amenities or services’. While public amenities and public services are not expressly defined, they do not include water supply or sewerage services.

• Contributions plans can require the payment of a monetary contribution towards the cost of providing the public amenities or public services (being the cost as indexed in accordance with the regulations)..

• Development timeframes are such that there is often several years between when LICs are collected and the infrastructure is required.

Voluntary planning agreements (VPAs) is another form of revenue generated for local infrastructure from developments. They are arrangements between developers and either councils or the State Government for infrastructure contributions collected for purposes not covered by a contributions plan. Section 7.4 of the Act allows councils and developers to voluntarily agree to a contribution arrangement. Examples of this could include a developer paying an additional contribution in relation to a change to a planning instrument or contributing infrastructure that was not anticipated at the time the contributions plan was developed. Contributions collected under a VPA do not have to demonstrate the same direct support for the infrastructure needs associated with the development as those collected under a contributions plan, although they must be related to the development in some way.

The purpose of the Council’s LIC plans is to:

• Provide the framework for the efficient and equitable determination, collection and management of contributions towards the provision of local infrastructure in the Georges River LGA; and

• Ensure Council’s management of local infrastructure contributions complies with relevant legislation and practice notes; and

• Establish the relationship between expected development and proposed local infrastructure to demonstrate that section 7.11 contributions under this plan are reasonable; and

• Ensure that developers make a reasonable contribution to the provision of local infrastructure required for development anticipated to occur up to 2036; and

• Ensure that the existing community is not unreasonably burdened by the provision of local infrastructure required, either partly or fully, as a result of development in the area; and

• To allow the opportunity for local infrastructure, or the dedication of land at no cost to Council, to be provided by developers or land owners in lieu of paying a monetary contribution when it accords with Council objectives or outcomes.

Both the historical and new plans provide for a range of funding for community infrastructure projects across the following categories these include, but are not limited to: • Open space facilities including open space

embellishment and land acquisition, and

• Community and recreational facilities including indoor sports facilities, libraries, community centres and childcare facilities, and

• Public domain works including footpath paving, street tree planting, street lighting and street furniture, and

• Traffic and transport facilities including roads and intersections, active transport, and traffic calming facilities.

Georges River Council Infrastructure Contribution Reserve Balances

2019/2020Actual

Closing Balance

2020/2021Forecast Closing Balance

2020/2021Forecast Closing Balance

$'000 $'000 $'000

Former Kogarah Section 7.11 Contributions Plans – Commenced 12 March 2013

36,093 38,618 43,265

Former Hurstville Section 7.11 Contributions Plans – Repealed 14 March 2013

7,056 6,046 5,939

Former Hurstville Section 7.11 Contributions Plans – commenced 14 March 2013

17,037 10,673 12,421

Former Hurstville and Kogarah Section 7.11 Contributions Plans – Various

3,940 3,940

Georges River Council Section 94A Plan 4,355 2,250 2,179

New Georges River Council Section 7.11 Contributions Plan (Anticipated expenditure depending approval)

(1,932)

Section 7.13 - Court Ordered Development Consent Contributions

94 - -

Voluntary Planning Agreements 10,419 7,611 7,656

Totals 75,054 69,138 73,468

As Council is an amalgamated, Georges River Council is operating an extensive list of plans from the former councils. In 2021/22 Georges River Council will be finalising a Georges River Council Local Infrastructure Contribution plan.

The funding of these projects can be a mix of development contributions as well as Council revenue and grant funding.

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Socio-Economic SnapshotWhen preparing the Financial Strategy and Long Term Financial Plan, a key factor taken into consideration was the socio-economic profile of the Georges River Local Government Area (LGA). With rates, annual charges and user fees and charges making up the majority of Council’s total revenue, it is important that the capacity to pay is one of those factors.

Key insights of our community:

Population156,293 Estimated residential population in 2017

185,346 Estimated population by 2030

8.3% Population increase from 2011 census to 2016

15% Growth projected for future years

Household income$1,654 Median weekly income

25.8% the LGA's largest quartiles were in the largest group for household income

Employment6.5% unemployment rate compared to 6.3% for NSW

62% of workforce worked full time and

36% part time

Education52.9% of people in the area had a tertiary qualification compared to 52.7% for Greater Sydney

7.7% are attending university, compared to Greater Sydney 6.1%

Households55,000 Residential dwellings

45.8% of dwellings were medium or high density (16.3% medium, 29.5% high)

44% of households in the area had access to two or more vehicles

37% of the area’s workforce also live in the area

2.84 Average household size is greater compared to Greater Sydney 2.72

Housing tenure 62.9% households were purchasing or fully owned their home compared to Greater Sydney 59%

30.8% were renting privately $2,167 Median monthly mortgage repayment

$450 Median weekly rent

50.9% of renting households paying $450 or more in rent

The SEIFA Index measures the relative level of socioeconomic disadvantage based on a range of Census characteristics. The index is derived from attributes that reflect disadvantage such as low income, low educational attainment, high unemployment, and jobs in relatively unskilled occupations, and is useful in identifying geographic areas that are relatively disadvantaged.

An area with an SEIFA of 1000 is considered average while a lower score indicates that the area is experiencing more disadvantage.

The SEIFA index by suburb is outlined below. Whilst there is some variation across the LGA, the overall Georges River Council Local Government Area (1020) is above the NSW (1001) and Greater Sydney (1018) index.

Council understands that rate payers may experience financial hardship and has options available under relevant legislation to provide support.

Connells Point - Kyle Bay 1,101.00Oatley 1,098.80Lugarno 1,097.20Hurstville Grove 1,082.90Blakehurst 1,078.00Kogarah Bay - Carss Park 1,071.90Peakhurst Heights 1,066.40Sans Souci 1,063.30Beverley Park - Ramsgate 1,057.50Mortdale 1,039.60SSROC 1,023.70Georges River Council area 1,020.00Greater Sydney 1,018.00Kogarah 1,015.10Penshurst 1,014.40St George Region 1,012.30Peakhurst 1,008.80Carlton 1,002.40Kingsgrove 1,002.20Australia 1,001.90New South Wales 1,001.00South Hurstville 998.7Beverly Hills - Narwee 992Allawah 989.4Hurstville (City Centre) 972.1Hurstville (total) 970.1Hurstville (Remainder) 969.5Riverwood 967.7

Source: * Source: Australian Bureau of Statistics, Census of Population and Housing 2016. Compiled and presented in profile.id by .id, the population experts https://home.id.com.au

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Financial Models OverviewModel 1 – Current situation (without corrective action) based on historical trendCouncil had an adopted forecasted operating deficit (before capital grants) for 2021/22 of $12 million. In order to significantly reduce the adopted operating deficit and address financial sustainability, reductions include $6 million worth of operational programs project, services and $350 million in capital projects being deferred, reduced or deleted. The model outlines the forecast result based on the reduced 2021/22 budget. Based on this approach the adopted forecast deficit of $12 million has been reduced to a projected deficit of $4.5 million in 2021/22.

Model 2 – New Rates 2021 Proposal (Special Rate Variation (SRV) of 5.8% each year over a 5 year period commencing in 2021/22 plus a further $12 million in savings identified over a number of years)Model 1 highlights the deteriorating financial results of current operations. Increasing deficits (sans Capital Grants income), if left unaddressed, will inevitably lead to council being unable to fulfil its mandated obligations. In addition, Council’s income is to be adversely affected by the termination of a current Special Rate Variation (from the former Hurstville City Council) with effect from 1 July 2021. This will reduce income by $2.3 million.

Consequently, Model 2 outlines the impact of a proposal to implement a permanent Special Rate Variation at 5.8% per annum (commencing 2021/22) for 5 years, to generate additional income of approximately $24 million over 5 years. This will be a permanent increase which its cumulative benefits will improve the financial sustainability of Council. An application has been made to IPART in this regard.

Model 2 also includes a proposition to reduce Council’s costs by $12 million over 3 years from 2020/21. The combined effect of these 2 measures is projected to resolve the unprofitable financial position of council and instill sustainable positive financial outcomes over the 10 years of the current Long Term Financial Plan.

Special Rate Variation Proposal2021/22 2022/23 2023/24 2024/25 2025/265.8% 5.8% 5.8% 5.8% 5.8%

Model 3 – No Special Rate Variation: Expenditure Savings through Service reductions from 2021/22 onwardsModel 3 presents a potential scenario, where the application for a Special Rate Variation, as proposed in Model 2, is not approved by IPART or Council resolves to, not implement the increase.As an alternative, Council will be compelled to discontinue some services and/or reduce levels of service in many areas, in an attempt to decrease the cost burden on its operations. This is expected to reduce costs by approximately $43 million while income is also projected to reduce by around $7 million over the 5 year period. While there will be some improvement in council’s financial performance as compared to the current position, these measures are not expected to sustainably resolve the financial problems. In addition, services to the community will be discontinued and/or delivered at a reduced level, contrary to feedback received during the community consultation on the proposal.

Model Sensitivity

These models are based on assumptions which represent the most likely outcome, given the prevailing economic and operating environment. A 1% variations in any one of these assumed rates (e.g. Inflation, Wage increases, Interest on investments) could have substantial impacts on the net results.

A 1% increase in the Inflation rate can adversely affect the Result (net of Capital Grants) by about 14%. Similarly an additional 1% increase in wage costs can adversely affect the net result by about 46%.

Key Performance Indicators

A number of key performance indicators are used by the Office of Local Government to help determine the sustainability of NSW councils. These indicators, together with others that are in use in the commercial environment are shown. The indicators relevant to each stage of operations are shown in the tables. This is to provide a snapshot of the state of Council’s current financial position and the comparative results relating to each model.

As is evident from the key performance indicators, the longer term financial outlook for Council (based on the current service portfolio) is not favourable. While gross surpluses are being generated over the short term, the 10 year trend, as projected in the Long Term Financial Plan is downward. As the Operating Performance Ratio indicates, council generates inadequate operating income to cover its operating expenditure, with negative results increasing over the 10 year period.

Council is now working towards introducing corrective measures to arrest the decline in performance and ensure long term financial sustainability. Models 2 and 3 show financial outcomes of proposed actions.

The Operating Performance, Unrestricted Current and Cash Coverage ratios highlight the essential ingredients for sustainable financial operations.

• The Operating Performance Ratio measures the extent of Council’ Revenue (net of Capital Grants) coverage of Expenditure. This needs to be a positive figure and ideally, growing.

• The Unrestricted Current Ratio measures Council’s liquidity. The benchmark based on successful organisations is set at 1.5 to 2.0. An increasing ratio over time shows improving liquidity and an environment where there is sufficient coverage of Current Liabilities from Current Assets.

• The Cash Coverage Ratio measures Council’s cash coverage of expenditure. This shows the number of months that Council will be able to operate unhindered, in the event that Council is unable to generate any additional cash through its operations. The greater the number of months shown, the more comfortable is the operating environment.

• Council’s Current Ratio is maintained at a healthy level throughout the 10-year period. While there is a projected decrease in Council’s cash balances, there is sufficient buffer to maintain adequate (above benchmark) levels of working capital.

24 Georges River Council // Long Term Financial Plan 2021/22 25

Det

aile

d Fi

nanc

ial M

odel

s

Mod

el 1

– C

urre

nt s

ituat

ion

(with

out c

orre

ctiv

e ac

tion)

bas

ed o

n hi

stor

ical

tren

d

Mod

el 1

20

18/1

9 20

19/2

0 20

20/2

1 20

21/2

2 20

22/2

3 20

23/2

4 20

24/2

5 20

25/2

6 20

26/2

7 20

27/2

8 20

28/2

9

Inco

me

Stat

emen

t AC

TUAL

B

UDG

ET

BUDG

ET

ESTI

MAT

E ES

TIM

ATE

ESTI

MAT

E ES

TIM

ATE

ESTI

MAT

E ES

TIM

ATE

ESTI

MAT

E ES

TIM

ATE

$’

000

$ '0

00

$ '0

00

$ '0

00

$ '0

00

$ '0

00

$ '0

00

$ '0

00

$ '0

00

$ '0

00

$ '0

00

Ope

ratin

g Re

venu

e

Rat

es a

nd A

nnua

l Cha

rges

92

,784

94

,979

98

,819

98

,933

10

1,30

6 10

3,63

6 10

5,91

6 10

8,13

9 11

0,30

1 11

2,50

7 11

4,75

7

Use

r Cha

rges

and

Fee

s 14

,679

15

,496

16

,657

17

,034

17

,464

17

,903

18

,350

18

,808

19

,261

19

,703

20

,156

Inte

rest

and

inve

stm

ent r

even

ue

5,89

1 3,

426

2,19

0 2,

425

2,44

7 2,

239

2,07

5 1,

971

1,88

2 1,

792

1,70

1

Gra

nts

and

Con

tribu

tions

- O

pera

ting

11,1

53

8,87

7 11

,360

11

,617

11

,909

12

,209

12

,514

12

,826

13

,133

13

,435

13

,745

Gra

nts

and

Con

tribu

tions

- C

apita

l 36

,304

14

,068

21

,366

21

,851

22

,402

22

,966

23

,540

24

,126

24

,705

25

,274

25

,856

Oth

er re

venu

es

11,8

71

9,17

5 11

,355

11

,613

11

,906

12

,206

12

,511

12

,823

13

,130

13

,433

13

,742

Tota

l Ope

ratin

g Re

venu

e 17

2,68

2 14

6,02

1 16

1,74

7 16

3,47

3 16

7,43

4 17

1,15

9 17

4,90

6 17

8,69

3 18

2,41

2 18

6,14

4 18

9,95

7

Ope

ratin

g Ex

pend

iture

Empl

oyee

Cos

ts

(56,

508)

(5

8,73

0)

(59,

500)

(6

1,67

9)

(63,

371)

(6

6,03

5)

(67,

770)

(7

0,08

2)

(72,

934)

(7

4,34

9)

(76,

580)

Mat

eria

ls a

nd C

ontra

cts

(42,

454)

(3

9,59

1)

(41,

928)

(4

2,62

3)

(43,

698)

(4

4,79

8)

(45,

918)

(4

7,06

2)

(48,

192)

(4

9,30

1)

(50,

436)

Oth

er E

xpen

ses

(21,

606)

(2

1,93

5)

(23,

109)

(2

4,20

0)

(23,

888)

(2

4,44

6)

(24,

648)

(2

6,36

2)

(26,

369)

(2

6,46

2)

(27,

073)

Tota

l Ope

ratin

g Ex

pend

iture

(1

20,5

68)

(120

,256

) (1

24,5

37)

(128

,502

) (1

30,9

57)

(135

,279

) (1

38,3

36)

(143

,506

) (1

47,4

95)

(150

,112

) (1

54,0

89)

Surp

lus/

(Def

icit)

prio

r to

Depr

ecia

tion

& Fi

nanc

ing

Cost

s 52

,114

25

,765

37

,210

34

,971

36

,477

35

,880

36

,570

35

,187

34

,917

36

,032

35

,868

D

epre

ciat

ion

(19,

557)

(2

0,63

1)

(24,

014)

(2

4,89

5)

(26,

135)

(2

7,41

3)

(28,

691)

(2

9,97

9)

(31,

286)

(3

2,60

1)

(33,

929)

Fina

ncin

g co

sts

(Inte

rest

Exp

ense

s)

(74)

(7

1)

(55)

(2

2)

(2

) 0

0 0

0 0

0

Net O

pera

ting

Resu

lt fo

r per

iod

- Sur

plus

/(Def

icit)

32

,483

5,

063

13,1

41

10,0

54

10,3

40

8,46

7 7,

879

5,20

8 3,

631

3,43

1 1,

939

Prio

r yea

r adj

ustm

ents

Net

gai

ns/(l

osse

s) fr

om D

ispo

sal o

f Ass

ets

551

1,06

1

5,

000

Oth

er a

djus

tmen

ts /

Rev

alua

tion

80,6

18

Adju

stm

ent o

n am

alga

mat

ion

Net S

urpl

us/(D

efic

it)

113,

652

6,12

4 18

,141

10

,054

10

,340

8,

467

7,87

9 5,

208

3,63

1 3,

431

1,93

9

Res

ult N

et o

f Cap

ital G

rant

s –

Surp

lus/

(Def

icit)

(3

,270

) (7

,944

) (3

,225

) (1

1,79

7)

(12,

062)

(1

4,49

9)

(15,

661)

(1

8,91

8)

(21,

074)

(2

1,84

3)

(23,

917)

Mod

el 1

20

18/1

9 20

19/2

0 20

20/2

1 20

21/2

2 20

22/2

3 20

23/2

4 20

24/2

5 20

25/2

6 20

26/2

7 20

27/2

8 20

28/2

9

Stat

emen

t of F

inan

cial

Pos

ition

AC

TUAL

BU

DGET

BU

DGET

ES

TIM

ATE

ESTI

MAT

E ES

TIM

ATE

ESTI

MAT

E ES

TIM

ATE

ESTI

MAT

E ES

TIM

ATE

ESTI

MAT

E

$’00

0 $

'000

$

'000

$

'000

$

'000

$

'000

$

'000

$

'000

$

'000

$

'000

$

'000

AS

SETS

Curr

ent A

sset

s

Cas

h, C

ash

Equi

vale

nts

& In

vest

men

ts

166,

710

143,

338

130,

661

129,

476

126,

224

123,

617

120,

047

114,

002

107,

663

101,

206

94,8

29

Rec

eiva

bles

- G

ross

10

,707

10

,479

23

,475

18

,827

15

,915

13

,000

11

,977

11

,792

11

,808

11

,818

11

,877

Le

ss: P

rovi

sion

for I

mpa

irmen

t (5

38)

(290

) (3

68)

(368

) (3

68)

(368

) (3

68)

(368

) (3

68)

(368

) (3

68)

Inve

ntor

ies

155

185

190

194

199

204

209

214

219

224

229

Oth

er

455

585

585

585

585

585

585

585

585

585

585

Tota

l Cur

rent

Ass

ets

177,

489

154,

297

154,

543

148,

714

142,

555

137,

038

132,

450

126,

225

119,

907

113,

465

107,

152

Non-

Curr

ent A

sset

s

Prop

erty

, Pla

nt &

Equ

ipm

ent

1,36

6,71

3 1,

393,

139

1,40

9,38

8 1,

425,

004

1,43

9,53

0 1,

452,

928

1,46

5,19

8 1,

476,

342

1,48

6,35

4 1,

495,

239

1,50

2,99

6 In

vest

men

t Pro

perty

17

,660

17

,660

17

,660

17

,660

17

,660

17

,660

17

,660

17

,660

17

,660

17

,660

17

,660

In

tang

ible

Ass

ets

1,36

2 1,

975

1,82

7 2,

816

3,65

5 4,

344

4,88

3 5,

510

5,96

2 6,

476

6,79

0 To

tal N

on-C

urre

nt A

sset

s 1,

385,

735

1,41

2,77

4 1,

428,

875

1,44

5,48

0 1,

460,

845

1,47

4,93

2 1,

487,

741

1,49

9,51

2 1,

509,

976

1,51

9,37

5 1,

527,

446

Tota

l Ass

ets

1,56

3,22

4 1,

567,

071

1,58

3,41

8 1,

594,

194

1,60

3,40

0 1,

611,

970

1,62

0,19

1 1,

625,

737

1,62

9,88

3 1,

632,

840

1,63

4,59

8

LI

ABIL

ITIE

S

Curr

ent L

iabi

litie

s

Paya

bles

(2

3,46

8)

(20,

318)

(1

9,62

8)

(20,

283)

(1

9,70

1)

(19,

147)

(1

9,06

2)

(18,

830)

(1

8,64

1)

(17,

818)

(1

7,08

7)

Inco

me

rece

ived

in a

dvan

ce

(596

) (5

96)

(596

) (5

96)

(596

) (5

96)

(596

) (5

96)

(596

) (5

96)

(596

) Bo

rrow

ings

(5

00)

(500

) (5

00)

(125

) 0

0 0

0 0

0 0

Accr

uals

& P

rovi

sion

s (1

4,71

7)

(16,

090)

(1

5,48

6)

(16,

053)

(1

5,62

6)

(16,

283)

(1

6,71

0)

(17,

280)

(1

7,98

4)

(18,

333)

(1

8,88

3)

Tota

l Cur

rent

Lia

bilit

ies

(39,

281)

(3

7,50

4)

(36,

210)

(3

7,05

7)

(35,

923)

(3

6,02

6)

(36,

368)

(3

6,70

6)

(37,

221)

(3

6,74

7)

(36,

566)

No

n-Cu

rren

t Lia

bilit

ies

Bo

rrow

ings

(1

,125

) (6

25)

(125

) 0

0 0

0 0

0 0

0 Pr

ovis

ions

Tota

l Non

-Cur

rent

Lia

bilit

ies

(1,1

25)

(625

) (1

25)

0 0

0 0

0 0

0 0

Tota

l Lia

bilit

ies

(40,

406)

(3

8,12

9)

(36,

335)

(3

7,05

7)

(35,

923)

(3

6,02

6)

(36,

368)

(3

6,70

6)

(37,

221)

(3

6,74

7)

(36,

566)

Ne

t Ass

ets

1,52

2,81

8 1,

528,

942

1,54

7,08

3 1,

557,

137

1,56

7,47

7 1,

575,

944

1,58

3,82

3 1,

589,

031

1,59

2,66

2 1,

596,

093

1,59

8,03

2

EQ

UITY

Ret

aine

d Ea

rnin

gs

(1,4

19,1

06)

(1,4

25,2

30)

(1,4

43,3

71)

(1,4

53,4

25)

(1,4

63,7

65)

(1,4

72,2

32)

(1,4

80,1

11)

(1,4

85,3

19)

(1,4

88,9

50)

(1,4

92,3

81)

(1,4

94,3

20)

Rev

alua

tion

Res

erve

(1

03,7

12)

(103

,712

) (1

03,7

12)

(103

,712

) (1

03,7

12)

(103

,712

) (1

03,7

12)

(103

,712

) (1

03,7

12)

(103

,712

) (1

03,7

12)

Tota

l Equ

ity

(1,5

22,8

18)

(1,5

28,9

42)

(1,5

47,0

83)

(1,5

57,1

37)

(1,5

67,4

77)

(1,5

75,9

44)

(1,5

83,8

23)

(1,5

89,0

31)

(1,5

92,6

62)

(1,5

96,0

93)

(1,5

98,0

32)

26 Georges River Council // Long Term Financial Plan 2021/22 27

Mod

el 1

20

18/1

9 20

19/2

0 20

20/2

1 20

21/2

2 20

22/2

3 20

23/2

4 20

24/2

5 20

25/2

6 20

26/2

7 20

27/2

8 20

28/2

9

Stat

emen

t of C

ash

Flow

s AC

TUAL

BU

DGET

BU

DGET

ES

TIM

ATE

ESTI

MAT

E ES

TIM

ATE

ESTI

MAT

E ES

TIM

ATE

ESTI

MAT

E ES

TIM

ATE

ESTI

MAT

E

$’00

0 $

'000

$

'000

$

'000

$

'000

$

'000

$

'000

$

'000

$

'000

$

'000

$

'000

Ca

sh F

low

s fr

om O

pera

ting

Activ

ities

Rece

ipts

Rat

es a

nd A

nnua

l Cha

rges

92

,586

95

,098

88

,144

10

2,98

3 10

3,85

4 10

6,31

6 10

6,98

3 10

8,07

2 11

0,23

6 11

2,44

0 11

4,69

0 U

ser F

ees

and

Cha

rges

13

,325

16

,881

16

,527

17

,038

17

,417

17

,855

18

,301

18

,758

19

,211

19

,655

20

,106

G

rant

s an

d C

ontri

butio

ns -

Ope

ratin

g 11

,644

8,

548

11,0

88

11,6

21

11,9

10

12,2

11

12,5

18

12,8

30

13,1

04

13,4

06

13,7

15

Bond

s, D

epos

its a

nd R

eten

tion

amou

nts

Rec

eive

d (N

et)

238

0 0

0 0

0 0

0 0

0 0

Oth

er

11,7

36

7,37

2 9,

004

12,2

67

12,2

55

12,3

75

12,4

19

13,0

47

13,1

92

13,5

05

13,8

20

Incr

ease

in B

ad D

ebt P

rovi

sion

24

8 (2

48)

78

0 0

0 0

0 0

0 0

Paym

ents

Empl

oyee

Ben

efits

and

On-

Cos

ts

(57,

877)

(5

7,35

7)

(60,

104)

(6

1,11

2)

(63,

798)

(6

5,37

8)

(67,

343)

(6

9,51

2)

(72,

230)

(7

4,00

0)

(76,

030)

M

ater

ials

and

Con

tract

s (4

2,98

9)

(40,

095)

(4

2,05

9)

(42,

504)

(4

3,51

1)

(45,

221)

(4

5,73

9)

(47,

523)

(4

8,02

7)

(49,

814)

(5

0,97

7)

Oth

er E

xpen

ses

(19,

448)

(2

4,14

1)

(23,

259)

(2

3,78

2)

(24,

662)

(2

4,58

2)

(24,

917)

(2

6,15

9)

(26,

728)

(2

6,79

7)

(27,

268)

Bo

rrow

ing

Cos

ts

(74)

(7

1)

(55)

(2

2)

(2)

0 0

0 0

0 0

Bond

s, D

epos

its a

nd R

eten

tion

amou

nts

Ref

unde

d

0 0

0 0

0 0

0 0

0 0

Fair

Valu

e ad

just

men

t on

Inve

stm

ent P

rope

rty

140

0

0 0

0 0

0 0

0 0

Net C

ash

from

Ope

ratin

g Ac

tiviti

es

9,52

9 5,

987

(636

) 16

,489

13

,463

13

,576

12

,222

9,

513

8,75

8 8,

395

8,05

6

Ca

sh F

low

s fr

om In

vest

ing

Activ

ities

Rece

ipts

Inve

stm

ent a

nd In

tere

st R

even

ue R

ecei

ved

6,14

3 4,

282

2,62

2 2,

361

2,50

8 2,

351

2,16

8 2,

045

1,94

8 1,

854

1.71

1 G

rant

s an

d C

ontri

butio

ns -

Cap

ital

36,3

04

14,0

68

21,3

66

21,8

51

22,4

02

22,9

66

23,5

40

24,1

26

24,7

05

25,2

74

25,8

56

Sale

of I

nves

tmen

t Sec

uriti

es

Pr

ocee

ds fr

om S

ale

of A

sset

s 3,

443

1,76

3 5,

000

0 0

0 0

0 0

0 0

Paym

ents

Purc

hase

of I

nves

tmen

t Sec

uriti

es

C

apita

l Wor

ks a

nd P

urch

ase

of F

ixed

Ass

ets

(70,

245)

(4

8,97

2)

(40,

529)

(4

1,38

6)

(41,

500)

(4

1,50

0)

(41,

500)

(4

1,72

9)

(41,

750)

(4

1,98

0)

(42,

000)

Ne

t Cas

h fr

om In

vest

ing

Activ

ities

(2

4,35

5)

(28,

859)

(1

1,54

1)

(17,

174)

(1

6,59

0)

(16,

183)

(1

5,79

2)

(15,

558)

(1

5,09

7)

(14,

852)

(1

4,43

3)

Cash

Flo

ws

from

Fin

anci

ng A

ctiv

ities

Rece

ipts

New

Bor

row

ings

Paym

ents

Rep

aym

ent o

f Bor

row

ings

(5

00)

(500

) (5

00)

(500

) (1

25)

Net C

ash

from

Fin

anci

ng A

ctiv

ities

(5

00)

(500

) (5

00)

(500

) (1

25)

0 0

0 0

0 0

Net I

ncre

ase

/ (De

crea

se) i

n Ca

sh a

nd C

ash

Equi

vale

nts

(15,

326)

(2

3,37

2)

(12,

677)

(1

,185

) (3

,252

) (2

,607

) (3

,570

) (6

,045

) (6

,339

) (6

,457

) (6

,377

) C

ash

and

Cas

h Eq

uiva

lent

s - B

egin

ning

of t

he Y

ear

182,

036

166,

710

143,

338

130,

661

129,

476

126,

224

123,

617

120,

047

114,

002

107,

663

101,

206

Cash

and

Cas

h Eq

uiva

lent

s - E

nd o

f the

Yea

r 16

6,71

0 14

3,33

8 13

0,66

1 12

9,47

6 12

6,22

4 12

3,61

7 12

0,04

7 11

4,00

2 10

7,66

3 10

1,20

6 94

,829

Mod

el 1

Be

nchm

ark

2018

/19

2019

/20

2020

/21

2021

/22

2022

/23

2023

/24

2024

/25

2025

/26

2026

/27

2027

/28

2028

/29

Key

Per

form

ance

Indi

cato

rs

AC

TUAL

BU

DGET

BU

DGET

ES

TIM

ATE

ESTI

MAT

E ES

TIM

ATE

ESTI

MAT

E ES

TIM

ATE

ESTI

MAT

E ES

TIM

ATE

ESTI

MAT

E

Ope

ratin

g Pe

rform

ance

Rat

io

0%

-2.9

%

-6.8

%

-5.9

%

-8.3

%

-8.3

%

-9.8

%

-10.

3%

-12.

2%

-13.

4%

-13.

6%

-14.

6%

(Mea

sure

s th

e ex

tent

of C

ounc

il's R

even

ue (n

et o

f C

apita

l Gra

nts)

cov

erag

e of

Exp

endi

ture

)

Ow

n So

urce

Rev

enue

Gen

erat

ed (w

/o G

rant

in

com

e)

> 80

%

72.5

%

84.3

%

79.8

%

79.5

%

79.5

%

79.4

%

79.4

%

79.3

%

79.3

%

79.2

%

79.2

%

(Mea

sure

s C

ounc

il's d

epen

denc

e on

Gra

nts

inco

me)

Unre

stric

ted

Curr

ent R

atio

>

1.5x

3.

7 1.

9 1.

8 1.

6 1.

5 1.

3 1.

2 1.

0 0.

8 0.

5 0.

3

(Mea

sure

s C

ounc

il's li

quid

ity)

Debt

Ser

vice

Cov

er R

atio

>

2.0x

27

.3

45.1

28

.5

25.1

11

0.8

No

Deb

t N

o D

ebt

No

Deb

t N

o D

ebt

No

Deb

t N

o D

ebt

(Mea

sure

s C

ounc

il's c

apac

ity to

ser

vice

deb

t)

Capi

tal W

orks

& A

sset

rene

wal

s >

=1.0

x 1.

0 1.

0 0.

9 0.

8 0.

8 0.

8 0.

7 0.

7 0.

7 0.

6 0.

6

(Mea

sure

s C

ounc

il's e

xpen

ditu

re o

n re

new

al o

f as

sets

in re

latio

n to

the

annu

al D

epre

ciat

ion

char

ge)

Ow

n So

urce

Rev

enue

Gro

wth

>

0%

5%

-2%

5%

1%

2%

2%

2%

2%

2%

2%

2%

(Mea

sure

s C

ounc

il's in

crea

se o

f ow

n so

urce

re

venu

e)

Debt

or D

ays

Out

stan

ding

- Ra

tes

< 30

11

.7

11.0

50

.0

35.0

25

.0

15.0

11

.0

11.0

11

.0

11.0

11

.0

Debt

or D

ays

Out

stan

ding

- O

ther

Deb

tors

(net

of

Rat

es)

< 30

35

.3

54.5

58

.0

53.0

50

.0

47.0

46

.0

44.0

43

.0

42.0

41

.0

(Mea

sure

s C

ounc

il's m

anag

emen

t of D

ebto

rs)

Debt

or C

olle

ctio

n Ra

te -

Rate

s =

> 10

0%

99.8

%

99.9

%

89.2

%

104.

1%

102.

5%

102.

6%

101.

0%

99.9

%

99.9

%

99.9

%

99.9

%

Debt

or C

olle

ctio

n Ra

te -

Oth

er D

ebto

rs (n

et o

f Ra

tes)

=

> 10

0%

101.

3%

100.

5%

96.3

%

100.

9%

100.

6%

100.

3%

99.9

%

100.

4%

100.

1%

100.

1%

100.

0%

(Mea

sure

s C

ounc

il's C

olle

ctio

n R

ate

of D

ebto

rs)

Cash

Cov

erag

e R

atio

>

3 M

ths

6.2

5.2

3.9

3.8

3.5

3.1

2.7

2.0

1.3

0.6

(0.1

)

(Mea

sure

s C

ounc

il's C

ash

cove

rage

of

Exp

endi

ture

)

Rem

aini

ng u

sefu

l Life

of A

sset

s >

60%

71

.9%

67

.6%

66

.5%

65

.6%

64

.9%

64

.1%

63

.3%

62

.5%

61

.6%

60

.7%

59

.7%

(Exp

ress

ed a

s a

% o

f Gro

ss C

ost o

f Ass

ets)

Repa

irs &

Mai

nten

ance

as

a %

of W

DV o

f As

sets

1%

0.

6%

0.5%

0.

6%

0.6%

0.

6%

0.6%

0.

7%

0.7%

0.

7%

0.7%

0.

7%

28 Georges River Council // Long Term Financial Plan 2021/22 29

Mod

el 1

2018

/19

2019

/20

2020

/21

2021

/22

2022

/23

2023

/24

2024

/25

2025

/26

2026

/27

2027

/28

2028

/29

Ass

umpt

ions

ACTU

A L BU

DGE T

BUDG

E T ES

TIM

AT E ES

TIM

AT E ES

TIM

AT E ES

TIM

AT E ES

TIM

AT E ES

TIM

AT E ES

TIM

AT E ES

TIM

AT E

Rat

e Pe

ggin

g Li

mit

%

2.30

%

2.70

%

2.60

%

2.50

%

2.40

%

2.30

%

2.20

%

2.10

%

2.00

%

2.00

%

2.00

%

Rat

e of

Infla

tion

%

1.90

%

2.00

%

2.02

%

2.27

%

2.52

%

2.52

%

2.50

%

2.49

%

2.40

%

2.30

%

2.30

%

Rat

es a

nd A

nnua

l Cha

rges

as

a %

of T

otal

R

even

ue

%

53.7

%

65.0

%

61.1

%

60.5

%

60.5

%

60.5

%

60.6

%

60.5

%

60.5

%

60.4

%

60.4

%

Inte

rest

Rat

e on

inve

stm

ents

%

3.

3%

2.5%

1.

5%

1.3%

1.

5%

1.5%

1.

5%

1.5%

1.

5%

1.5%

1.

5%

Empl

oyee

Cos

ts a

s a

% o

f Tot

al E

xpen

ditu

re

%

40.3

%

41.7

%

40.0

%

40.2

%

40.3

%

40.6

%

40.6

%

40.4

%

40.8

%

40.7

%

40.7

%

Dep

reci

atio

n as

a %

of G

ross

Cos

t of A

sset

s %

1.

7%

1.7%

1.

8%

1.9%

1.

9%

1.9%

1.

9%

2.0%

2.

0%

2.0%

2.

0%

Loan

s ou

tsta

ndin

g

$ '0

00

1,62

5 1,

125

625

125

0 0

0 0

0 0

0

Inte

rest

pay

men

ts o

n lo

ans

$ '0

00

74

71

55

22

0 0

0 0

0 0

0

Cap

ital W

orks

Pro

gram

$

'000

68

,530

45

,057

38

,370

35

,000

35

,000

35

,000

35

,000

35

,000

35

,000

35

,000

35

,000

Mod

el 2

– N

ew R

ates

202

1 Pr

opos

al (M

ulti-

year

per

man

ent S

peci

al R

ate

Var

iatio

n of

5.8

% e

ach

year

for 5

yea

rs fr

om 2

021/

22 p

lus

proj

ecte

d E

xpen

ditu

re

Sav

ings

of $

12m

ove

r 3 y

ears

from

202

0/21

)

Mod

el 2

20

18/1

9 20

19/2

0 20

20/2

1 20

21/2

2 20

22/2

3 20

23/2

4 20

24/2

5 20

25/2

6 20

26/2

7 20

27/2

8 20

28/2

9

Inco

me

Stat

emen

t A

CTU

AL

BU

DG

ET

BU

DG

ET

BU

DG

ET

ESTI

MA

TE

ESTI

MA

TE

ESTI

MA

TE

ESTI

MA

TE

ESTI

MA

TE

ESTI

MA

TE

ESTI

MA

TE

$’

000

$ '0

00

$ '0

00

$ '0

00

$ '0

00

$ '0

00

$ '0

00

$ '0

00

$ '0

00

$ '0

00

$ '0

00

Ope

ratin

g Re

venu

e

Rat

es a

nd A

nnua

l Cha

rges

92

,784

94

,979

98

,819

10

2,14

1 10

7,01

7 11

2,15

4 11

7,57

0 12

3,27

6 12

5,74

1 12

8,25

5 13

0,82

0

Use

r Cha

rges

and

Fee

s 14

,679

15

,496

16

,657

15

,148

15

,530

15

,921

16

,320

16

,726

17

,127

17

,519

17

,921

Inte

rest

and

inve

stm

ent r

even

ue

5,89

1 3,

426

2,19

0 1,

050

2,73

0 2,

663

2,70

7 2,

874

3,08

9 3,

313

3,54

9

Gra

nts

and

Con

tribu

tions

- O

pera

ting

11,1

53

8,87

7 11

,360

15

,364

15

,751

16

,148

16

,551

16

,964

17

,371

17

,771

18

,180

Gra

nts

and

Con

tribu

tions

- C

apita

l 36

,304

14

,068

21

,366

18

,216

15

,893

16

,294

16

,702

17

,118

17

,529

17

,932

18

,344

Oth

er re

venu

es

11,8

71

9,17

5 11

,355

12

,295

12

,605

12

,922

13

,245

13

,574

13

,899

14

,218

14

,545

Tota

l Ope

ratin

g Re

venu

e 17

2,68

2 14

6,02

1 16

1,74

7 16

4,21

4 16

9,52

6 17

6,10

2 18

3,09

5 19

0,53

2 19

4,75

6 19

9,00

8 20

3,35

9

Ope

ratin

g Ex

pend

iture

Empl

oyee

Cos

ts

(56,

508)

(5

8,73

0)

(59,

500)

(6

0,49

5)

(60,

423)

(6

2,25

0)

(63,

877)

(6

6,07

7)

(68,

827)

(7

0,13

9)

(72,

265)

Mat

eria

ls a

nd C

ontra

cts

(42,

454)

(3

9,59

1)

(41,

928)

(4

4,39

0)

(43,

508)

(4

3,85

5)

(44,

952)

(4

6,07

0)

(47,

176)

(4

8,25

9)

(49,

368)

Oth

er E

xpen

ses

(21,

606)

(2

1,93

5)

(23,

109)

(2

3,63

5)

(22,

100)

(2

2,28

2)

(22,

429)

(2

4,08

8)

(24,

039)

(2

4,08

1)

(24,

634)

Tota

l Ope

ratin

g Ex

pend

iture

(1

20,5

68)

(120

,256

) (1

24,5

37)

(128

,520

) (1

26,0

31)

(128

,387

) (1

31,2

58)

(136

,235

) (1

40,0

42)

(142

,479

) (1

46,2

67)

Surp

lus/

(Def

icit)

prio

r to

Depr

ecia

tion

& F

inan

cing

Co

sts

52,1

14

25,7

65

37,2

10

35,6

94

43,4

95

47,7

15

51,8

37

54,2

97

54,7

14

56,5

29

57,0

92

Dep

reci

atio

n (1

9,55

7)

(20,

631)

(2

4,01

4)

(24,

894)

(2

5,69

2)

(27,

546)

(2

9,03

8)

(30,

543)

(3

2,06

1)

(32,

000)

(3

2,58

7)

Fina

ncin

g co

sts

(Inte

rest

Exp

ense

s)

(74)

(7

1)

(55)

(2

5)

(2)

0

0 0

0 0

Net O

pera

ting

Resu

lt fo

r per

iod

- Sur

plus

/(Def

icit)

32

,483

5,

063

13,1

41

10,7

75

17,8

01

20,1

69

22,7

99

23,7

54

22,6

53

24,5

29

24,5

05

Prio

r yea

r adj

ustm

ents

Net

gai

ns/(l

osse

s) fr

om D

ispo

sal o

f Ass

ets

551

1,06

1

5,

000

2,97

5

Oth

er a

djus

tmen

ts /

Rev

alua

tion

80,6

18

Adju

stm

ent o

n am

alga

mat

ion

Net S

urpl

us/(D

efic

it)

113,

652

6,12

4 18

,141

13

,750

17

,801

20

,169

22

,799

23

,754

22

,653

24

,529

24

,505

Res

ult N

et o

f Cap

ital G

rant

s –

Surp

lus/

(Def

icit)

(3

,270

) (7

,944

) (3

,225

) (4

,466

) 1,

908

3,87

5 6,

097

6,63

6 5,

124

6,59

7 6,

161

30 Georges River Council // Long Term Financial Plan 2021/22 31

Mod

el 2

20

18/1

9 20

19/2

0 20

20/2

1 20

21/2

2 20

22/2

3 20

23/2

4 20

24/2

5 20

25/2

6 20

26/2

7 20

27/2

8 20

28/2

9 St

atem

ent o

f Fin

anci

al P

ositi

on

AC

TUA

L B

UD

GET

B

UD

GET

B

UD

GET

ES

TIM

ATE

ES

TIM

ATE

ES

TIM

ATE

ES

TIM

ATE

ES

TIM

ATE

ES

TIM

ATE

ES

TIM

ATE

$’

000

$ '0

00

$ '0

00

$ '0

00

$ '0

00

$ '0

00

$ '0

00

$ '0

00

$ '0

00

$ '0

00

$ '0

00

ASSE

TS

Cu

rren

t Ass

ets

C

ash,

Cas

h Eq

uiva

lent

s &

Inve

stm

ents

16

6,71

0 14

3,33

8 13

0,69

0 14

3,40

3 14

6,90

9 15

6,34

0 16

8,59

3 18

2,13

9 19

6,15

7 21

0,79

0 22

6,19

5 R

ecei

vabl

es -

Gro

ss

10,7

07

10,4

79

23,4

75

19,2

79

16,8

70

13,9

21

12,9

25

12,8

53

12,8

96

12,9

16

13,0

20

Less

: Pro

visi

on fo

r Im

pairm

ent

(538

) (2

90)

(368

) (3

68)

(368

) (3

68)

(368

) (3

68)

(368

) (3

68)

(368

) In

vent

orie

s 15

5 18

5 16

1 16

6 17

0 17

4 17

8 18

3 18

7 19

1 19

5 O

ther

45

5 58

5 58

5 58

5 58

5 58

5 58

5 58

5 58

5 58

5 58

5 To

tal C

urre

nt A

sset

s 17

7,48

9 15

4,29

7 15

4,54

3 16

3,06

5 16

4,16

6 17

0,65

2 18

1,91

3 19

5,39

2 20

9,45

7 22

4,11

4 23

9,62

7

No

n-Cu

rren

t Ass

ets

Pr

oper

ty, P

lant

& E

quip

men

t 1,

366,

713

1,39

3,13

9 1,

409,

388

1,41

4,54

4 1,

428,

783

1,44

1,31

8 1,

452,

511

1,46

2,36

1 1,

470,

868

1,47

9,62

4 1,

487,

993

Inve

stm

ent P

rope

rty

17,6

60

17,6

60

17,6

60

17,6

60

17,6

60

17,6

60

17,6

60

17,6

60

17,6

60

17,6

60

17,6

60

Inta

ngib

le A

sset

s 1,

362

1,97

5 1,

827

1,58

1 2,

550

3,36

9 4,

038

4,79

5 5,

377

6,02

1 6,

465

Tota

l Non

-Cur

rent

Ass

ets

1,38

5,73

5 1,

412,

774

1,42

8,87

5 1,

433,

785

1,44

8,99

3 1,

462,

347

1,47

4,20

9 1,

484,

816

1,49

3,90

5 1,

503,

305

1,51

2,11

8

To

tal A

sset

s 1,

563,

224

1,56

7,07

1 1,

583,

418

1,59

6,85

0 1,

613,

159

1,63

2,99

9 1,

656,

122

1,68

0,20

8 1,

703,

362

1,72

7,41

9 1,

751,

745

LIAB

ILIT

IES

Cu

rren

t Lia

bilit

ies

Pa

yabl

es

(23,

468)

(2

0,31

8)

(19,

628)

(1

9,55

1)

(19,

030)

(1

8,25

1)

(18,

174)

(1

7,96

3)

(17,

786)

(1

6,99

0)

(16,

287)

In

com

e re

ceiv

ed in

adv

ance

(5

96)

(596

) (5

96)

(596

) (5

96)

(596

) (5

96)

(596

) (5

96)

(596

) (5

96)

Borro

win

gs

(500

) (5

00)

(500

) (1

25)

0 0

0 0

0 0

0 Ac

crua

ls &

Pro

visi

ons

(14,

717)

(1

6,09

0)

(15,

486)

(1

5,74

5)

(14,

899)

(1

5,34

9)

(15,

750)

(1

6,29

3)

(16,

971)

(1

7,29

5)

(17,

819)

To

tal C

urre

nt L

iabi

litie

s (3

9,28

1)

(37,

504)

(3

6,21

0)

(36,

017)

(3

4,52

5)

(34,

196)

(3

4,52

0)

(34,

852)

(3

5,35

3)

(34,

881)

(3

4,70

2)

Non-

Curr

ent L

iabi

litie

s

Borro

win

gs

(1,1

25)

(625

) (1

25)

0 0

0 0

0 0

0 0

Prov

isio

ns

To

tal N

on-C

urre

nt L

iabi

litie

s (1

,125

) (6

25)

(125

) 0

0 0

0 0

0 0

0

To

tal L

iabi

litie

s (4

0,40

6)

(38,

129)

(3

6,33

5)

(36,

017)

(3

4,52

5)

(34,

196)

(3

4,52

0)

(34,

852)

(3

5,35

3)

(34,

881)

(3

4,70

2)

Net A

sset

s 1,

522,

818

1,52

8,94

2 1,

547,

083

1,56

0,83

3 1,

578,

634

1,59

9,80

3 1,

621,

602

1,64

5,35

6 1,

668,

009

1,69

2,53

8 1,

717,

043

EQUI

TY

R

etai

ned

Earn

ings

(1

,419

,106

) (1

,425

,230

) (1

,443

,371

) (1

,457

,121

) (1

,474

,922

) (1

,495

,091

) (1

,517

,890

) (1

,541

,644

) (1

,564

,297

) (1

,588

,826

) (1

,613

,331

) R

eval

uatio

n R

eser

ve

(103

,712

) (1

03,7

12)

(103

,712

) (1

03,7

12)

(103

,712

) (1

03,7

12)

(103

,712

) (1

03,7

12)

(103

,712

) (1

03,7

12)

(103

,712

)

To

tal E

quity

(1

,522

,818

) (1

,528

,942

) (1

,547

,083

) (1

,560

,833

) (1

,578

,634

) (1

,598

,803

) (1

,621

,602

) (1

,645

,356

) (1

,668

,009

) (1

,692

,538

) (1

,717

,043

)

Mod

el 2

20

18/1

9 20

19/2

0 20

20/2

1 20

21/2

2 20

22/2

3 20

23/2

4 20

24/2

5 20

25/2

6 20

26/2

7 20

27/2

8 20

28/2

9

Stat

emen

t of C

ash

Flow

s A

CTU

AL

BU

DG

ET

BU

DG

ET

BU

DG

ET

ESTI

MA

TE

ESTI

MA

TE

ESTI

MA

TE

ESTI

MA

TE

ESTI

MA

TE

ESTI

MA

TE

ESTI

MA

TE

$’

000

$ '0

00

$ '0

00

$ '0

00

$ '0

00

$ '0

00

$ '0

00

$ '0

00

$ '0

00

$ '0

00

$ '0

00

Cash

Flo

ws

from

Ope

ratin

g Ac

tiviti

es

Re

ceip

ts

R

ates

and

Ann

ual C

harg

es

92,5

86

95,0

98

88,1

44

105,

884

109,

481

114,

875

118,

636

123,

104

125,

667

128,

179

130,

742

Use

r Fee

s an

d C

harg

es

13,3

25

16,8

81

16,5

27

15,3

59

15,4

88

15,8

78

16,2

77

16,6

81

17,8

03

17,4

76

17,8

77

Gra

nts

and

Con

tribu

tions

- O

pera

ting

11,6

44

8,54

8 11

,088

14

,967

15

,753

16

,151

16

,556

16

,969

17

,332

17

,733

18

,141

Bo

nds,

Dep

osits

and

Ret

entio

n am

ount

s R

ecei

ved

(Net

) 23

8 0

0 0

0 0

0 0

0 0

0

Oth

er

11,7

36

7,37

2 9,

004

12,6

22

12,9

75

13,1

01

13,4

18

13,8

11

13,9

64

14,2

95

14,6

28

Incr

ease

in B

ad D

ebt P

rovi

sion

24

8 (2

48)

78

0 0

0 0

0 0

0 0

Paym

ents

Empl

oyee

Ben

efits

and

On-

Cos

ts

(57,

877)

(5

7,35

7)

(60,

104)

(6

0,23

6)

(61,

269)

(6

1,80

0)

(63,

476)

(6

5,53

4)

(68,

149)

(6

9,81

5)

(71,

741)

M

ater

ials

and

Con

tract

s (4

2,98

9)

(40,

095)

(4

2,03

0)

(43,

957)

(4

3,66

9)

(44,

398)

(4

4,77

6)

(46,

522)

(4

7,01

3)

(48,

761)

(4

9,89

7)

Oth

er E

xpen

ses

(19,

448)

(2

4,14

1)

(23,

259)

(2

3,43

4)

(23,

294)

(2

2,52

2)

(22,

686)

(2

3,87

3)

(24,

383)

(2

4,39

9)

(24,

812)

Bo

rrow

ing

Cos

ts

(74)

(7

1)

(55)

(2

5)

(2)

0 0

0 0

0 0

Bond

s, D

epos

its a

nd R

eten

tion

amou

nts

Ref

unde

d

Fair

Valu

e ad

just

men

t on

Inve

stm

ent P

rope

rty

140

0

0 0

0 0

0 0

0 0

Net C

ash

from

Ope

ratin

g A

ctiv

ities

9,

529

5,98

7 (6

07)

21,1

80

25,4

63

31,2

85

33,6

79

34,6

36

34,5

01

34,7

08

34,9

38

Cash

Flo

ws

from

Inve

stin

g Ac

tiviti

es

Re

ceip

ts

In

vest

men

t and

Inte

rest

Rev

enue

Rec

eive

d 6,

143

4,28

2 2,

622

1,36

2 2,

345

2,75

2 2,

772

2,92

1 3,

138

3,37

3 3,

523

Gra

nts

and

Con

tribu

tions

- C

apita

l 36

,304

14

,068

21

,366

18

,216

15

,893

16

,294

16

,702

17

,118

17

,529

17

,932

18

,344

Sa

le o

f Inv

estm

ent S

ecur

ities

Proc

eeds

from

Sal

e of

Ass

ets

3,44

3 1,

763

5,00

0 4,

575

600

600

600

600

600

600

600

Paym

ents

Purc

hase

of I

nves

tmen

t Sec

uriti

es

C

apita

l Wor

ks a

nd P

urch

ase

of F

ixed

Ass

ets

(70,

245)

(4

8,97

2)

(40,

529)

(3

2,12

0)

(40,

670)

(4

1,50

0)

(41,

500)

(4

1,72

9)

(41,

750)

(4

1,98

0)

(42,

000)

Ne

t Cas

h fr

om In

vest

ing

Activ

ities

(2

4,35

5)

(28,

859)

(1

1,54

1)

(7,9

67)

(22,

408)

(2

1,94

5)

(21,

514)

(2

1,17

0)

(20,

554)

(2

0,13

6)

(19,

583)

Ca

sh F

low

s fr

om F

inan

cing

Act

iviti

es

Re

ceip

ts

N

ew B

orro

win

gs

Pa

ymen

ts

R

epay

men

t of B

orro

win

gs

(500

) (5

00)

(500

) (5

00)

(125

)

Ne

t Cas

h fr

om F

inan

cing

Act

iviti

es

(500

) (5

00)

(500

) (5

00)

(125

) 0

0 0

0 0

0

Ne

t Inc

reas

e / (

Decr

ease

) in

Cash

and

Cas

h Eq

uiva

lent

s (1

5,32

6)

(23,

372)

(1

2,64

8)

12,7

13

3,50

6 9,

431

12,2

53

13,5

46

14,0

18

14,6

33

15,4

05

Cas

h an

d C

ash

Equi

vale

nts

- Beg

inni

ng o

f the

Yea

r 18

2,03

6 16

6,71

0 14

3,33

8 13

0,69

0 14

3,40

3 14

6,90

9 15

6,34

0 16

8,59

3 18

2,13

9 19

6,15

7 21

0,79

0 Ca

sh a

nd C

ash

Equi

vale

nts

- End

of t

he Y

ear

166,

710

143,

338

130,

690

143,

403

146,

909

156,

340

168,

593

182,

139

196,

157

210,

790

226,

195

32 Georges River Council // Long Term Financial Plan 2021/22 33

Mod

el 2

B

ench

mar

k 20

18/1

9 20

19/2

0 20

20/2

1 20

21/2

2 20

22/2

3 20

23/2

4 20

24/2

5 20

25/2

6 20

26/2

7 20

27/2

8 20

28/2

9

Key

Per

form

ance

Indi

cato

rs

A

CTU

AL

BU

DG

ET

BU

DG

ET

BU

DG

ET

ESTI

MA

TE

ESTI

MA

TE

ESTI

MA

TE

ESTI

MA

TE

ESTI

MA

TE

ESTI

MA

TE

ESTI

MA

TE

Ope

ratin

g Pe

rform

ance

Rat

io

0%

-2.8

%

-6.8

%

-5.9

%

-5.1

%

1.2%

2.

4%

3.7%

3.

8%

2.9%

3.

6%

3.3%

(Mea

sure

s th

e ex

tent

of C

ounc

il's R

even

ue (n

et

of C

apita

l Gra

nts)

cov

erag

e of

Exp

endi

ture

)

Ow

n So

urce

Rev

enue

Gen

erat

ed (w

/o G

rant

in

com

e)

> 80

%

72.5

%

84.3

%

79.8

%

79.6

%

81.3

%

81.6

%

81.8

%

82.1

%

82.1

%

82.1

%

82.0

%

(Mea

sure

s C

ounc

il's d

epen

denc

e on

Gra

nts

inco

me)

Unre

stric

ted

Curr

ent R

atio

>

1.5x

1.

9 1.

9 1.

8 1.

7 1.

7 1.

9 2.

1 2.

4 2.

6 3.

0 3.

3

(Mea

sure

s C

ounc

il's li

quid

ity)

Debt

Ser

vice

Cov

er R

atio

>

2.0x

27

.5

20.5

28

.5

33.3

21

7.3

No

Deb

t N

o D

ebt

No

Deb

t N

o D

ebt

No

Deb

t N

o D

ebt

(Mea

sure

s C

ounc

il's c

apac

ity to

ser

vice

deb

t)

Capi

tal W

orks

& A

sset

rene

wal

s >

=1.0

x 1.

9 1.

1 0.

9 0.

8 0.

8 0.

7 0.

7 0.

7 0.

6 0.

7 0.

6

(Mea

sure

s C

ounc

il's e

xpen

ditu

re o

n re

new

al o

f as

sets

in re

latio

n to

the

annu

al D

epre

ciat

ion

char

ge)

Ow

n So

urce

Rev

enue

Gro

wth

>

0%

5%

-2%

5%

1%

5%

4%

4%

4%

2%

2%

2%

(Mea

sure

s C

ounc

il's in

crea

se o

f ow

n so

urce

re

venu

e)

Debt

or D

ays

Out

stan

ding

- R

ates

<

30

11.7

11

.0

50.0

35

.0

25.0

15

.0

11.0

11

.0

11.0

11

.0

11.0

Deb

tor D

ays

Out

stan

ding

- O

ther

Deb

tors

(n

et o

f Rat

es)

< 30

35

.3

54.5

58

.0

56.0

56

.0

53.0

52

.0

50.0

48

.0

47.0

46

.0

(Mea

sure

s C

ounc

il's m

anag

emen

t of D

ebto

rs)

Debt

or C

olle

ctio

n R

ate

- Rat

es

= >

100%

99

.8%

10

0.1%

89

.2%

10

3.7%

10

2.3%

10

2.4%

10

0.9%

99

.9%

99

.9%

99

.9%

99

.9%

Deb

tor C

olle

ctio

n Ra

te -

Oth

er D

ebto

rs (n

et

of R

ates

) =

> 10

0%

101.

3%

100.

2%

96.3

%

100.

7%

99.9

%

100.

4%

99.9

%

100.

4%

100.

0%

100.

1%

100.

0%

(Mea

sure

s C

ounc

il's C

olle

ctio

n R

ate

of D

ebto

rs)

Cash

Cov

erag

e R

atio

>

3 M

ths

6.2

4.3

3.4

3.8

4.0

4.6

5.4

6.1

6.9

7.7

8.4

(Mea

sure

s C

ounc

il's C

ash

cove

rage

of

Exp

endi

ture

)

Rem

aini

ng u

sefu

l Life

of A

sset

s >

60%

71

.9%

67

.6%

66

.5%

64

.9%

64

.5%

63

.6%

62

.7%

61

.7%

60

.6%

59

.7%

58

.7%

(Exp

ress

ed a

s a

% o

f Gro

ss C

ost o

f Ass

ets)

Rep

airs

& M

aint

enan

ce a

s a

% o

f WDV

of

Ass

ets

1%

0.6%

0.

5%

0.6%

0.

6%

0.6%

0.

6%

0.6%

0.

6%

0.6%

0.

6%

0.6%

Mod

el 2

2018

/19

2019

/20

2020

/21

2021

/22

2022

/23

2023

/24

2024

/25

2025

/26

2026

/27

2027

/28

2028

/29

Ass

umpt

ions

AC

TUA

L B

UD

GET

B

UD

GET

B

UD

GET

ES

TIM

ATE

ES

TIM

ATE

ES

TIM

ATE

ES

TIM

ATE

ES

TIM

ATE

ES

TIM

ATE

ES

TIM

ATE

Rat

e Pe

ggin

g Li

mit

%

2.3%

2.

7%

2.6%

2.

0%

2.0%

2.

0%

2.0%

2.

0%

2.0%

2.

0%

2.0%

Gro

ss S

RV

incl

udin

g R

ate

Peg

5.8%

5.

8%

5.8%

5.

8%

5.8%

Rat

e of

Infla

tion

%

1.90

%

2.00

%

2.02

%

2.27

%

2.52

%

2.52

%

2.50

%

2.49

%

2.40

%

2.30

%

2.30

%

Rat

es a

nd A

nnua

l Cha

rges

as

a %

of T

otal

R

even

ue

%

53.7

%

65.0

%

61.1

%

62.2

%

63.1

%

63.7

%

64.2

%

64.7

%

64.6

%

64.4

%

64.3

%

Inte

rest

Rat

e on

inve

stm

ents

%

3.

3%

2.5%

1.

5%

1.3%

1.

5%

1.5%

1.

5%

1.5%

1.

5%

1.5%

1.

5%

Empl

oyee

Cos

ts a

s a

% o

f Tot

al E

xpen

ditu

re

%

40.3

%

41.7

%

40.0

%

39.4

%

39.8

%

39.9

%

39.8

%

39.6

%

40.0

%

40.2

%

40.4

%

Dep

reci

atio

n as

a %

of G

ross

Cos

t of A

sset

s %

1.

7%

1.7%

1.

8%

1.9%

1.

9%

2.0%

2.

0%

2.1%

2.

1%

2.0%

2.

0%

Loan

s ou

tsta

ndin

g

$ '0

00

1,62

5 1,

125

625

125

0 0

0 0

0 0

0

Inte

rest

pay

men

ts o

n lo

ans

$ '0

00

74

71

55

25

2 0

0 0

0 0

0

Cap

ital W

orks

Pro

gram

$

'000

68

,530

45

,057

38

,370

27

,623

35

,000

35

,000

35

,000

35

,000

35

,000

35

,000

35

,000

34 Georges River Council // Long Term Financial Plan 2021/22 35

Mod

el 3

- N

o Sp

ecia

l Rat

e Va

riatio

n: E

xpen

ditu

re S

avin

gs th

roug

h si

gnifi

cant

Ser

vice

redu

ctio

ns fr

om 2

021/

22 o

nwar

ds

Mod

el 3

20

18/1

9 20

19/2

0 20

20/2

1 20

21/2

2 20

22/2

3 20

23/2

4 20

24/2

5 20

25/2

6 20

26/2

7 20

27/2

8 20

28/2

9

Inco

me

Stat

emen

t AC

TUAL

BU

DGET

BU

DGET

BU

DGET

ES

TIM

ATE

ESTI

MAT

E ES

TIM

ATE

ESTI

MAT

E ES

TIM

ATE

ESTI

MAT

E ES

TIM

AT E

$’00

0 $

'000

$

'000

$

'000

$

'000

$

'000

$

'000

$

'000

$

'000

$

'000

$

'000

O

pera

ting

Rev

enue

Rat

es a

nd A

nnua

l Cha

rges

92

,784

94

,979

98

,819

98

,942

10

0,92

1 10

2,94

0 10

5,00

0 10

7,10

0 10

9,24

1 11

1,42

6 11

3,65

4

Use

r Cha

rges

and

Fee

s 14

,679

15

,496

16

,657

14

,544

14

,911

15

,372

15

,758

16

,150

16

,537

16

,915

17

,304

Inte

rest

and

inve

stm

ent r

even

ue

5,89

1 3,

426

2,19

0 1,

050

2,68

0 2,

565

2,56

3 2,

665

2,80

4 2,

957

3,11

7

Gra

nts

and

Con

tribu

tions

- O

pera

ting

11,1

53

8,87

7 11

,360

15

,003

15

,381

15

,769

16

,162

16

,566

16

,963

17

,354

17

,753

Gra

nts

and

Con

tribu

tions

- C

apita

l 36

,304

14

,068

21

,366

18

,215

15

,893

16

,294

16

,702

17

,118

17

,529

17

,932

18

,344

Oth

er re

venu

es

11,8

71

9,17

5 11

,355

11

,236

11

,519

12

,922

13

,245

13

,574

13

,899

14

,218

14

,545

Tota

l Ope

ratin

g Re

venu

e 17

2,68

2 14

6,02

1 16

1,74

7 15

8,99

0 16

1,30

5 16

5,86

2 16

9,43

0 17

3,17

3 17

6,97

3 18

0,80

2 18

4,71

7

Ope

ratin

g Ex

pend

iture

Empl

oyee

Cos

ts

(56,

508)

(5

8,73

0)

(59,

500)

(5

7,47

9)

(54,

727)

(5

1,89

8)

(50,

560)

(5

1,62

4)

(53,

172)

(5

4,76

4)

(56,

408)

Mat

eria

ls a

nd C

ontra

cts

(42,

454)

(3

9,59

1)

(41,

928)

(4

2,99

6)

(44,

079)

(4

5,19

1)

(46,

323)

(4

7,47

7)

(48,

617)

(4

9,73

5)

(50,

879)

Oth

er E

xpen

ses

(21,

606)

(2

1,93

5)

(23,

109)

(2

2,70

3)

(20,

144)

(2

2,82

7)

(22,

988)

(2

4,66

1)

(24,

627)

(2

4,68

2)

(25,

250)

Tota

l Ope

ratin

g Ex

pend

iture

(1

20,5

68)

(120

,256

) (1

24,5

37)

(123

,178

) (1

20,9

50)

(119

,916

) (1

19,8

71)

(123

,762

) (1

26,4

16)

(129

,181

) (1

32,5

37)

Surp

lus/

(Def

icit)

prio

r to

Depr

ecia

tion

& Fi

nanc

ing

Cost

s 52

,114

25

,765

37

,210

35

,812

40

,355

45

,946

49

,559

49

,411

50

,557

51

,621

52

,180

Dep

reci

atio

n (1

9,55

7)

(20,

631)

(2

4,01

4)

(24,

894)

(2

5,69

2)

(27,

546)

(2

9,03

8)

(30,

543)

(3

2,06

1)

(32,

000)

(3

2,58

7)

Fina

ncin

g co

sts

(Inte

rest

Exp

ense

s)

(74)

(7

1)

(55)

(2

5)

(2)

0 0

0 0

0 0

Net O

pera

ting

Resu

lt fo

r per

iod

- Sur

plus

/(Def

icit)

32

,483

5,

063

13,1

41

10,8

93

14,6

61

18,4

00

20,5

21

18,8

68

18,4

96

19,6

21

19,5

93

Prio

r yea

r adj

ustm

ents

Net

gai

ns/(l

osse

s) fr

om D

ispo

sal o

f Ass

ets

551

1,06

1

5,

000

2,97

5

Oth

er a

djus

tmen

ts /

Rev

alua

tion

80,6

18

Adju

stm

ent o

n am

alga

mat

ion

Net S

urpl

us/(D

efic

it)

113,

652

6,12

4 18

,141

13

,868

14

,661

18

,400

20

,521

18

,868

18

,496

19

,621

19

,593

Res

ult N

et o

f Cap

ital G

rant

s –

Surp

lus/

(Def

icit)

(3

,270

) (7

,944

) (3

,225

) (4

,347

) (1

,232

) 2,

106

3,81

9 1,

750

967

1,68

9 1,

249

Mod

el 3

20

18/1

9 20

19/2

0 20

20/2

1 20

21/2

2 20

22/2

3 20

23/2

4 20

24/2

5 20

25/2

6 20

26/2

7 20

27/2

8 20

28/2

9

Stat

emen

t of F

inan

cial

Pos

ition

AC

TUAL

BU

DGET

BU

DGET

ES

TIM

ATE

ESTI

MAT

E ES

TIM

ATE

ESTI

MAT

E ES

TIM

ATE

ESTI

MAT

E ES

TIM

ATE

ESTI

MAT

E

$’00

0 $

'000

$

'000

$

'000

$

'000

$

'000

$

'000

$

'000

$

'000

$

'000

$

'000

AS

SETS

Curr

ent A

sset

s

Cas

h, C

ash

Equi

vale

nts

& In

vest

men

ts

166,

710

143,

338

130,

690

143,

050

143,

613

149,

902

159,

156

167,

635

177,

219

187,

005

197,

383

Rec

eiva

bles

- G

ross

10

,707

10

,479

23

,475

18

,360

15

,857

13

,422

12

,420

12

,231

12

,256

12

,264

12

,346

Le

ss: P

rovi

sion

for I

mpa

irmen

t (5

38)

(290

) (3

68)

(368

) (3

68)

(368

) (3

68)

(368

) (3

68)

(368

) (3

68)

Inve

ntor

ies

155

185

161

166

170

174

178

183

187

191

195

Oth

er

455

585

585

585

585

585

585

585

585

585

585

Tota

l Cur

rent

Ass

ets

177,

489

154,

297

154,

543

161,

793

159,

857

163,

715

171,

971

180,

266

189,

879

199,

677

210,

141

Non-

Curr

ent A

sset

s

Prop

erty

, Pla

nt &

Equ

ipm

ent

1,36

6,71

3 1,

393,

139

1,40

9,38

8 1,

414,

544

1,42

8,78

3 1,

441,

318

1,45

2,51

1 1,

462,

361

1,47

0,86

8 1,

479,

624

1,48

7,99

3 In

vest

men

t Pro

perty

17

,660

17

,660

17

,660

17

,660

17

,660

17

,660

17

,660

17

,660

17

,660

17

,660

17

,660

In

tang

ible

Ass

ets

1,36

2 1,

975

1,82

7 1,

581

2,55

0 3,

369

4,03

8 4,

795

5,37

7 6,

021

6,46

5 To

tal N

on-C

urre

nt A

sset

s 1,

385,

735

1,41

2,77

4 1,

428,

875

1,43

3,78

5 1,

448,

993

1,46

2,34

7 1,

474,

209

1,48

4,81

6 1,

493,

905

1,50

3,30

5 1,

512,

118

Tota

l Ass

ets

1,56

3,22

4 1,

567,

071

1,58

3,41

8 1,

595,

578

1,60

8,85

0 1,

626,

062

1,64

6,18

0 1,

665,

082

1,68

3,78

4 1,

702,

982

1,72

2,25

9

LI

ABIL

ITIE

S

Curr

ent L

iabi

litie

s

Paya

bles

(2

3,46

8)

(20,

318)

(1

9,62

8)

(18,

946)

(1

9,14

8)

(18,

657)

(1

8,58

4)

(18,

356)

(1

8,18

0)

(17,

365)

(1

6,64

3)

Inco

me

rece

ived

in a

dvan

ce

(596

) (5

96)

(596

) (5

96)

(596

) (5

96)

(596

) (5

96)

(596

) (5

96)

(596

) Bo

rrow

ings

(5

00)

(500

) (5

00)

(125

) 0

0 0

0 0

0 0

Accr

uals

& P

rovi

sion

s (1

4,71

7)

(16,

090)

(1

5,48

6)

(14,

960)

(1

3,49

4)

(12,

797)

(1

2,46

7)

(12,

729)

(1

3,11

1)

(13,

503)

(1

3,90

9)

Tota

l Cur

rent

Lia

bilit

ies

(39,

281)

(3

7,50

4)

(36,

201)

(3

4,62

7)

(33,

238)

(3

2,05

0)

(31,

647)

(3

1,68

1)

(31,

887)

(3

1,46

4)

(31,

148)

No

n-Cu

rren

t Lia

bilit

ies

Bo

rrow

ings

(1

,125

) (6

25)

(125

) 0

0 0

0 0

0 0

0 Pr

ovis

ions

Tota

l Non

-Cur

rent

Lia

bilit

ies

(1,1

25)

(625

) (1

25)

Tota

l Lia

bilit

ies

(40,

406)

(3

8,12

9)

(36,

335)

(3

4,62

7)

(33,

238)

(3

2,05

0)

(31,

647)

(3

1,68

1)

(31,

887)

(3

1,46

4)

(31,

148)

Net A

sset

s 1,

522,

818

1,52

8,94

2 1,

547,

083

1,56

0,95

1 1,

575,

612

1,59

4,01

2 1,

614,

533

1,63

3,40

1 1,

651,

897

1,67

1,51

8 1,

691,

111

EQUI

TY

R

etai

ned

Earn

ings

(1

,419

,106

) (1

,425

,230

) (1

,443

,371

) (1

,457

,239

) (1

,471

,900

) (1

,490

,300

) (1

,510

,821

) (1

,529

,689

) (1

,548

,185

) (1

,567

,806

) (1

,587

,399

) R

eval

uatio

n R

eser

ve

(103

,712

) (1

03,7

12)

(103

,712

) (1

03,7

12)

(103

,712

) (1

03,7

12)

(103

,712

) (1

03,7

12)

(103

,712

) (1

03,7

12)

(103

,712

)

Tota

l Equ

ity

(1,5

22,8

18)

(1,5

28,9

42)

(1,5

47,0

83)

(1,5

60,9

51)

(1,5

75,6

12)

(1,5

94,0

12)

(1,6

14,5

33)

(1,6

33,4

01)

(1,6

51,8

97)

(1,6

71,5

18)

(1,6

91,1

11)

36 Georges River Council // Long Term Financial Plan 2021/22 37

Mod

el 3

20

18/1

9 20

19/2

0 20

20/2

1 20

21/2

2 20

22/2

3 20

23/2

4 20

24/2

5 20

25/2

6 20

26/2

7 20

27/2

8 20

28/2

9

Stat

emen

t of C

ash

Flow

s AC

TUA

L BU

DGET

BU

DGET

BU

DGET

ES

TIM

ATE

ESTI

MAT

E ES

TIM

ATE

ESTI

MAT

E ES

TIM

ATE

ESTI

MAT

E ES

TIM

AT E

$’00

0 $

'000

$

'000

$

'000

$

'000

$

'000

$

'000

$

'000

$

'000

$

'000

$

'000

Ca

sh F

low

s fr

om O

pera

ting

Activ

ities

Rece

ipts

Rat

es a

nd A

nnua

l Cha

rges

92

,586

95

,098

88

,144

10

2,99

1 10

3,49

7 10

5,62

2 10

6,06

6 10

7,03

6 10

9,17

7 11

1,36

0 11

3,58

7 U

ser F

ees

and

Cha

rges

13

,325

16

,881

16

,527

14

,821

14

,871

15

,321

15

,716

16

,107

16

,495

16

,873

17

,262

G

rant

s an

d C

ontri

butio

ns -

Ope

ratin

g 11

,644

8,

548

11,0

88

14,6

45

15,3

83

15,7

71

16,1

67

16,5

71

16,9

25

17,3

17

17,7

15

Bond

s, D

epos

its a

nd R

eten

tion

amou

nts

Rec

eive

d (N

et)

238

0 0

0 0

0 0

0 0

0 0

Oth

er

11,7

36

7,37

2 9,

004

12,0

71

11,8

57

12,6

25

13,1

48

13,8

11

13,9

64

14,2

95

14,6

28

Incr

ease

in B

ad D

ebt P

rovi

sion

24

8 (2

48)

78

0 0

0 0

0 0

0 0

Paym

ents

Empl

oyee

Ben

efits

and

On-

Cos

ts

(57,

877)

(5

7,35

7)

(60,

104)

(5

8,00

5)

(56,

193)

(5

2,59

5)

(50,

890)

(5

1,36

2)

(52,

790)

(5

4,37

2)

(56,

002)

M

ater

ials

and

Con

tract

s (4

2,98

9)

(40,

095)

(4

2,03

0)

(42,

811)

(4

3,89

0)

(45,

616)

(4

6,14

1)

(47,

943)

(4

8,44

9)

(50,

252)

(5

1,42

3)

Oth

er E

xpen

ses

(19,

448)

(2

4,14

1)

(23,

259)

(2

2,85

9)

(22,

965)

(2

2,89

7)

(23,

247)

(2

4,44

9)

(24,

975)

(2

5,00

4)

(25,

432)

Bo

rrow

ing

Cos

ts

(74)

(7

1)

(55)

(2

5)

(2)

0 0

0 0

0 0

Bond

s, D

epos

its a

nd R

eten

tion

amou

nts

Ref

unde

d

0 0

0 0

0 0

0 0

0 0

Fair

Valu

e ad

just

men

t on

Inve

stm

ent P

rope

rty

140

0 0

0 0

0 0

0 0

0 0

Net C

ash

from

Ope

ratin

g Ac

tiviti

es

9,52

9 5,

987

(607

) 20

,828

22

,558

28

,231

30

,819

29

,771

30

,347

30

,217

30

,335

Ca

sh F

low

s fr

om In

vest

ing

Act

iviti

es

Re

ceip

ts

In

vest

men

t and

Inte

rest

Rev

enue

Rec

eive

d 6,

143

4,28

2 2,

622

1,36

2 2,

307

2,66

4 2,

633

2,71

9 2,

858

3,01

7 3,

099

Gra

nts

and

Con

tribu

tions

- C

apita

l 36

,304

14

,068

21

,366

18

,215

15

,893

16

,294

16

,702

17

,118

17

,529

17

,932

18

,344

Sa

le o

f Inv

estm

ent S

ecur

ities

Proc

eeds

from

Sal

e of

Ass

ets

3,44

3 1,

763

5,00

0 4,

575

600

600

600

600

600

600

600

Paym

ents

Purc

hase

of I

nves

tmen

t Sec

uriti

es

C

apita

l Wor

ks a

nd P

urch

ase

of F

ixed

Ass

ets

(70,

245)

(4

8,97

2)

(40,

529)

(3

2,12

0)

(40,

670)

(4

1,50

0)

(41,

500)

(4

1,72

9)

(41,

750)

(4

1,98

0)

(42,

000)

Ne

t Cas

h fr

om In

vest

ing

Activ

ities

(2

4,35

5)

(28,

859)

(1

1,54

1)

(7,9

68)

(21,

870)

(2

1,94

2)

(21,

565)

(2

1,29

2)

(20,

763)

(2

0,43

1)

(19,

957)

Ca

sh F

low

s fr

om F

inan

cing

Act

iviti

es

Re

ceip

ts

N

ew B

orro

win

gs

Pa

ymen

ts

R

epay

men

t of B

orro

win

gs

(500

) (5

00)

(500

) (5

00)

(125

)

Ne

t Cas

h fr

om F

inan

cing

Act

iviti

es

(500

) (5

00)

(500

) (5

00)

(125

)

Ne

t Inc

reas

e / (

Decr

ease

) in

Cas

h an

d Ca

sh E

quiv

alen

ts

(15,

326)

(2

3,37

2)

(12,

648)

12

,360

56

3 6,

289

9,25

4 8,

479

9,58

4 9,

786

10,3

78

Cas

h an

d C

ash

Equi

vale

nts

- Beg

inni

ng o

f the

Yea

r 18

2,03

6 16

6,71

0 14

3,33

8 13

0,69

0 14

3,05

0 14

3,61

3 14

9,90

2 15

9,15

6 16

7,63

5 17

7,21

9 18

7,00

5 Ca

sh a

nd C

ash

Equi

vale

nts

- End

of t

he Y

ear

166,

710

143,

338

130,

690

143,

050

143,

613

149,

902

159,

156

167,

635

177,

219

187,

005

197,

383

Mod

el 3

Be

nchm

ark

2018

/19

2019

/20

2020

/21

2021

/22

2022

/23

2023

/24

2024

/25

2025

/26

2026

/27

2027

/28

2028

/29

Key

Per

form

ance

Indi

cato

rs

AC

TUA

L BU

DGET

BU

DGET

ES

TIM

ATE

ESTI

MAT

E ES

TIM

ATE

ESTI

MAT

E ES

TIM

ATE

ESTI

MAT

E ES

TIM

ATE

ESTI

MAT

E

Ope

ratin

g Pe

rform

ance

Rat

io

0%

-2.8

%

-6.8

%

-5.9

%

-5.2

%

-0.8

%

1.4%

2.

5%

1.1%

0.

6%

1.0%

0.

8%

(Mea

sure

s th

e ex

tent

of C

ounc

il's R

even

ue (n

et o

f C

apita

l Gra

nts)

cov

erag

e of

Exp

endi

ture

)

Ow

n So

urce

Rev

enue

Gen

erat

ed (w

/o G

rant

in

com

e)

> 80

%

72.5

%

84.3

%

79.8

%

79.1

%

80.6

%

80.7

%

80.6

%

80.5

%

80.5

%

80.5

%

80.4

%

(Mea

sure

s C

ounc

il's d

epen

denc

e on

Gra

nts

inco

me)

Unre

stric

ted

Curr

ent R

atio

>

1.5x

1.

9 1.

9 1.

6 1.

7 1.

7 1.

8 2.

0 2.

1 2.

3 2.

5 2.

8

(Mea

sure

s C

ounc

il's li

quid

ity)

Debt

Ser

vice

Cov

er R

atio

>

2.0x

27

.5

20.5

28

.5

33.5

19

2.6

No

Deb

t N

o D

ebt

No

Deb

t N

o D

ebt

No

Deb

t N

o D

ebt

(Mea

sure

s C

ounc

il's c

apac

ity to

ser

vice

deb

t)

Capi

tal W

orks

& A

sset

rene

wal

s >

=1.0

x 1.

9 1.

1 0.

9 0.

8 0.

8 0.

7 0.

7 0.

7 0.

6 0.

7 0.

6 (M

easu

res

Cou

ncil's

exp

endi

ture

on

rene

wal

of

asse

ts in

rela

tion

to th

e an

nual

Dep

reci

atio

n ch

arge

)

Ow

n So

urce

Rev

enue

Gro

wth

>

0%

5%

-2%

5%

-3

%

3%

3%

2%

2%

2%

2%

2%

(Mea

sure

s C

ounc

il's in

crea

se o

f ow

n so

urce

re

venu

e)

Debt

or D

ays

Out

stan

ding

- Ra

tes

< 30

11

.7

11.0

50

.0

35.0

25

.0

15.0

11

.0

11.0

11

.0

11.0

11

.0

Debt

or D

ays

Out

stan

ding

- O

ther

Deb

tors

(net

of

Rat

es)

< 30

35

.3

54.5

58

.0

54.0

54

.0

53.0

52

.0

50.0

48

.0

47.0

46

.0

(Mea

sure

s C

ounc

il's m

anag

emen

t of D

ebto

rs)

Debt

or C

olle

ctio

n Ra

te -

Rate

s =

> 10

0%

99.8

%

100.

1%

89.2

%

104.

1%

102.

6%

102.

6%

101.

0%

99.9

%

99.9

%

99.9

%

99.9

%

Debt

or C

olle

ctio

n Ra

te -

Oth

er D

ebto

rs (n

et o

f Ra

tes)

=

> 10

0%

101.

3%

100.

2%

96.3

%

101.

8%

99.9

%

99.6

%

99.9

%

100.

4%

100.

1%

100.

1%

100.

0%

(Mea

sure

s C

ounc

il's C

olle

ctio

n R

ate

of D

ebto

rs)

Cash

Cov

erag

e R

atio

>

3 M

ths

6.2

4.3

3.4

3.9

3.8

4.3

4.9

5.3

5.8

6.2

6.6

(Mea

sure

s C

ounc

il's C

ash

cove

rage

of

Exp

endi

ture

)

Rem

aini

ng u

sefu

l Life

of A

sset

s >

60%

71

.9%

67

.6%

66

.5%

64

.9%

64

.5%

63

.6%

62

.7%

61

.7%

60

.6%

59

.7%

58

.7%

(Exp

ress

ed a

s a

% o

f Gro

ss C

ost o

f Ass

ets)

Re

pairs

& M

aint

enan

ce a

s a

% o

f WDV

of

Asse

ts

1%

0.6%

0.

5%

0.6%

0.

6%

0.6%

0.

6%

0.6%

0.

6%

0.6%

0.

6%

0.6%

38 Georges River Council // Long Term Financial Plan 2021/22 39

Mod

el 3

2018

/19

2019

/20

2020

/21

2021

/22

2022

/23

2023

/24

2024

/25

2025

/26

2026

/27

2027

/28

2028

/29

Ass

umpt

ions

ACT

UAL

BUDG

E T BU

DGE T

ESTI

MAT E

ESTI

MAT E

ESTI

MAT E

ESTI

MAT E

ESTI

MAT E

ESTI

MAT E

ESTI

MAT E

ESTI

MAT E

Rat

e Pe

ggin

g Li

mit

%

2.3%

2.

7%

2.6%

2.

0%

2.0%

2.

0%

2.0%

2.

0%

2.0%

2.

0%

2.0%

Gro

ss S

RV

(incl

udin

g R

ate

Peg)

%

Rat

e of

Infla

tion

%

1.90

%

2.00

%

2.02

%

2.27

%

2.52

%

2.52

%

2.50

%

2.49

%

2.40

%

2.30

%

2.30

%

Rat

es a

nd A

nnua

l Cha

rges

as

a %

of T

otal

R

even

ue

%

53.7

%

65.0

%

61.1

%

62.2

%

62.6

%

62.1

%

62.0

%

61.9

%

61.8

%

61.7

%

61.6

%

Inte

rest

Rat

e on

inve

stm

ents

%

3.

3%

2.5%

1.

5%

1.3%

1.

5%

1.5%

1.

5%

1.5%

1.

5%

1.5%

1.

5%

Empl

oyee

Cos

ts a

s a

% o

f Tot

al E

xpen

ditu

re

%

40.3

%

41.7

%

40.0

%

38.8

%

37.3

%

35.2

%

34.0

%

33.5

%

33.6

%

34.0

%

34.2

%

Dep

reci

atio

n as

a %

of G

ross

Cos

t of A

sset

s %

1.

7%

1.7%

1.

8%

1.9%

1.

9%

1.9%

2.

0%

2.0%

2.

1%

2.0%

2.

0%

Loan

s ou

tsta

ndin

g

$ '0

00

1,62

5 1,

125

625

125

0 0

0 0

0 0

0

Inte

rest

pay

men

ts o

n lo

ans

$ '0

00

74

71

55

22

2 0

0 0

0 0

0

Cap

ital W

orks

Pro

gram

$

'000

68

.530

45

.057

38

,370

27

,623

35

,000

35

,000

35

,000

35

,000

35

,000

35

,000

35

,000

ADMINISTRATION

Approved by Council Meeting **/**/2021 Council Resolution CCL***-21

Exhibition Period Public Exhibition - Document Identifier D21/79394

VERSION CONTROL AND CHANGE HISTORY

Version Amendment Details Document Owner Period Active1.0 2021/22 Resourcing

StrategyIntegrated Planning and Reporting Officer

40 Georges River Council // Long Term Financial Plan 2021/22 41

RESOURCING STRATEGYLONG TERM FINANCIAL PLAN

2021/22

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