Post on 22-Apr-2022
RESOURCING STRATEGY
Long term Financial Plan2021/22
www.georgesriver.nsw.gov.au
3
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.
2 Georges River Council // Long Term Financial Plan 2021/22 3
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
4 Georges River Council // Long Term Financial Plan 2021/22 5
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
6 Georges River Council // Long Term Financial Plan 2021/22 7
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.
8 Georges River Council // Long Term Financial Plan 2021/22 9
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.
10 Georges River Council // Long Term Financial Plan 2021/22 11
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.
12 Georges River Council // Long Term Financial Plan 2021/22 13
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.
14 Georges River Council // Long Term Financial Plan 2021/22 15
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:
16 Georges River Council // Long Term Financial Plan 2021/22 17
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.
18 Georges River Council // Long Term Financial Plan 2021/22 19
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.
20 Georges River Council // Long Term Financial Plan 2021/22 21
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
22 Georges River Council // Long Term Financial Plan 2021/22 23
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
www.georgesriver.nsw.gov.au