2018/19 budget estimates - flinders council

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2018/19 Budget Estimates 16 August 2018

Contents

INTRODUCTION ..................................................................................................................................................... 1

2018 /19 BUDGET OUTLINE .............................................................................................................................. 1

Previous Actions .................................................................................................................................................. 1

Capital Works ................................................................................................................................................... 1

Revenue .............................................................................................................................................................. 2

Financial Reserves .......................................................................................................................................... 3

Current Situation ................................................................................................................................................. 4

2018/19 BUDGET SUMMARY ........................................................................................................................... 6

Cash Management .............................................................................................................................................. 7

Significant One-Off Projects ........................................................................................................................... 7

Rate Revenue ........................................................................................................................................................ 8

Airport Operations........................................................................................................................................... 10

Private Works .................................................................................................................................................... 10

Operating Income ............................................................................................................................................. 11

Operating Expenses ......................................................................................................................................... 11

Income and Expenditure by Function ........................................................................................................ 12

Capital Works .................................................................................................................................................... 12

Loans ..................................................................................................................................................................... 12

Other Budget Information ............................................................................................................................ 12

Reference Documents .................................................................................................................................... 12

BUDGET DOCUMENTS ..................................................................................................................................... 13

Flinders Council 2018-19 Budget Estimates 1 | P a g e

INTRODUCTION

Under the Local Government Act 1993 (the Act) Councils have a range of functions and powers including, but not limited to, the following:

S20(1) (a) to provide for the health, safety and welfare of the Community (b) to represent and promote the interests of the Community (c) to provide for the peace, order and good government of the municipal area

In terms of achieving these and other objectives Council is required to develop a range of strategic and operational plans and documents that underpin the operations of the Council; the importance of which should not be underestimated.

S68 Strategic Plan S70 Long Term Financial Management Plan S70A Financial Management Strategies S70B Long Term Strategic Asset Management Plan S70C Asset Management Policies S70D Asset Management Strategies S71 Annual Plan S82 Estimate (Budget)

This document addresses S82 as highlighted which requires the Council to prepare Budget Estimates of the Council’s revenue and expenditure for each financial year which include the estimated revenue, expenditure, borrowings and capital works plus other details required by the Minister.

2018 /19 BUDGET OUTLINE

The 2018/19 Budget needs to consider through the various Asset and Financial Management Strategies, the future before landing on the present through an adopted Budget and Annual Plan. However, past actions should also be considered if for no other reason than to put the current situation into context. There have been many positive actions undertaken over a number of years that have improved the performance of the Council and the Community, equally a number of opportunities have not been taken up, in part through lack of sufficient resources.

Previous Actions

Capital Works

Over recent years there has been an acceleration in new and replacement infrastructure, plant and equipment as well as some strategic land purchases. These have been important and creditable initiatives and included but not limited to the following:

(a) Upgrades of the Flinders Arts and Entertainment Centre, Lady Barron Hall and Emita Hall, in part through successful grant applications.

These have been well received and now patronised with increased community use. Through Council’s policy of not charging community users, little revenue has been derived. Council’s operational expenditure has however increased, without any additional revenue created to fund this additional expense.

(b) Construction of new playgrounds and improved BBQ’s and public toilets facilities.


Again, projects have been well received and welcomed by the Community and enhance Flinders as a tourist destination, but Council’s operational expenditure has increased without any additional revenue created to fund this additional expense.

(c) Strategic purchase of key plant and equipment such as a new bituminous sprayer.

Council borrowed for this item which effectively repaid for itself inside 18 months through Council being able to undertake its own bituminous sealing works instead of using external contractors. Although this has not seen a reduction in Council’s overall expenses on Capital Works, the net result is that Council has been able to undertake more roadmaking, including for the first time in over 30 years actually extending the sealed road network. Local employment has also benefited. Repayment of the loan is still required.

(d) Purchases of land associated with two quarries (Lughrata and Cannes Hill) and land at the entrance to Whitemark.

All have strategic value. Lughrata and Cannes Hill secures valuable sources of quarry material with reductions in ongoing expenses which will be realised in the long-term. Cannes Hill also has excellent sub divisional potential. However there has been no allocation of additional revenue to restore the level of these financial reserves.

(e) Northern Tasmanian Economic Stimulus Loan package to advance $1.447m in infrastructure with all loan interest payments to be refunded.

Whilst a sound strategic and cost-effective decision, Council’s Net Financial Reserves are effectively overstated as these loans need to be repaid; some at the end of the life of the loan.

Revenue

Council’s operating revenue is broadly made up of Rates and Charges, Statutory Fees and Fines, User Fees, Grants, Contributions, Interest and Other Income. Council has minimal direct control of most elements other than Rates and Charges and User Fees where decisions are totally within the Council’s control. With respect to User Fees the most significant effect relates to Airport Fees and Charges.


In this respect the growth in each of these two specific areas has been unspectacular as shown by the following:

It is difficult to ascertain exactly what transpired in the past without detailed modelling of previous years rates data but essentially what appears to have occurred is that there has been barely above inflation increases in rates, with growth in rates income masked by growth in development. For a very small municipality such as Flinders, this becomes problematical.

Financial Reserves

The overall result of these decisions has seen a significant decline in the level of Council’s Financial Reserves as highlighted by Council’s Net Liquid Position (Financial Reserves less Loan Commitments) as follows:

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

2013 2014 2015 2016 2017 2018

Airport User Fees Increase per Annum

Passenger Tax Regular Passenger Transport (RPT) Landings

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

2013 2014 2015 2016 2017 2018

Illistrative Rate increases

Rate Increase including growth per annum

Notional Inflation Rate

Net Rate Increase including growth per annum


Current Situation

During the past two years, as part of a continuous improvement development program, Council has undertaken a number of important projects that have provided Council and the Community with a potential positive future to face a number of significant challenges. Some of the most significant of them include the following:

(a) Telecommunications Upgrade on Flinders and Cape Barren Islands.

At the second attempt, Council secured funding for a $10.6m project to allow Telstra to significantly upgrade its telecommunications network to a 4GX standard. Without Council’s dogged pursuit and financial commitment of $0.77m based on $1000 per person living in the Finders Municipality plus contributions of $7.88m by the Australian Government through the Building Better Regions Program, $1.6m Telstra and $0.35m State Government; an upgrade on Flinders would likely never have occurred. The positive impact on existing and future residents cannot be underestimated. This project was not included in the initial 2017/18 budget. Given Council’s very limited base and level of financial reserves, there is simply no alternative to recover this expenditure through increased rates and charges. There is also a significant cost with reduction in investment interest in order to fund the progress contract payments.

(b) Flinders Municipal Disadvantage

The structural and financial operation of Flinders Council and the Furneaux Islands generally is significantly disadvantaged due to our remoteness as we are not connected to land, are made up of some 52 islands and have a very small population and rate base relative to our size and population. Intuitively, all residents know and understand this and adapt lifestyle and operations to suit. In some instances, due to our unique lifestyle and generally low housing and accommodation costs, we are seen somewhat counterintuitively as less disadvantaged. Governments also understand this and from time to time fund facilities, programs and subsidies that recognise their overarching “community service obligation,” much like that exists between the Australian Mainland and other remote and less populated states such as Tasmania. In recognition of this and with the assistance of funding through the Australian Government’s Building Better Regions Program, Council is proceeding with an independent analysis though the Flinders Business Economic and Social Structural

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

2013 2014 2015 2016 2017 2018

Net Liquidity ($000's)


Review Project. The aim of this study is to quantify both relative lifestyle advantages which are essentially attractors to the Island and structural disadvantages that exist to a level that can be useful for Council, and local organisations, to objectively advance our case to governments in the future. In local government rating terms, Flinders Council has a very low rate base with a large portion of its area consisting of Parks and Reserves with are non rateable.

(c) Sustainability

All Councils are required to address issues associated with long term sustainability, through Strategic, Annual, Asset Management and Long Term Financial Management Strategies and Plans. Sustainability may be in financial as well as operating terms. For smaller Councils without economies of scale this becomes a challenge. This is highlighted in Council’s Annual Financial Statements as expressed by the Underlying Surplus or Deficit and Underlying Surplus Ratio. In Tasmania there are no set adopted recommended limits for these management indicators but as a guide we have used those adopted by Victorian Local Government as follows:

Risk Management Indicator - Net Result %

High Less than negative 10% Insufficient revenue is being generated to fund operations and asset renewal

Medium Negative 10%-0% A risk of long-term run down to cash reserves and inability to fund asset renewals

Low More than 0% Generating surpluses consistently

As indicated in Council’s Financial Reports, Council is in the High-Risk bracket in relation to its underlying surplus or net result.

Management Indicator 2014 2015 2016 2017

Underlying Surplus or Deficit ($000’s) (1,183) (635) (1,004) (1,124)

Underlying Surplus Ratio -49% -15% -22% -26%

Having a negative Underlying Surplus, especially one of such a size, and also a negative Underlying Surplus Ratio over a sustained period raises questions of sustainability as insufficient revenue is being generated to fund operations and asset renewal. From an operational perspective, sustainability also refers to a Council’s ability to react and support financially, those works that the Community may turn to as a partner. In our case, due to our particular circumstances as previously described, this sustainability is not just on a long-term basis but is now a short to medium term issue. This needs to be acutely addressed in the 2018/19 budget as well as the next 20 years. Without this being done there is a real risk to Council’s financial viability.


2018/19 BUDGET SUMMARY

In preparing the 2018/19 Budget for Council consideration, Council staff have firstly put in a significant and time-consuming amount of work to actively review the nature of the information, streamlining projects and underlying costing methodologies including oncost, plant and quarry allocations, to more accurately reflect Council’s operations. This has been a very significant task but also undertaken to highlight more accurately the operation and nuances of the Council’s operation. Councillors have long requested that this work be carried out and welcome the opportunity to have this consolidated at this time. Council has stripped the 18/19 operational budget down to the bare minimum whilst still maintaining the required outputs. Every expenditure line has been reviewed and re-reviewed and generally only includes expenditures based on the previous year’s actuals or known increases. Several one-off, committed operational projects that will not be repeated also need to be included. In doing so, it also became evident that historically some of Council’s building works were classified incorrectly as capital expenditures when they were operational repairs and maintenance and as a result this increased the Council’s Budget 2018/19 operating expenses. Capital works have also been reduced to the minimum whist still recognising that Council has commitments to co-fund some community building facility works as well as ensuring that it acquits its Roads to Recovery program commitments, which means an increase in 2018/19 of our own source recovery expenses. Council understands the financial pressures facing ratepayers but has decided that we cannot afford to stop investment into community facilities, parks and roads or providing crucial services to many of our ratepayers. Council operations are governed and regulated by the Local Government Act 1993 along with other State and Federal government legislation. Some of our annual regulated requirements include the Dog Control Act, CASA Regulation (Airport), Public Health Act, Environment Protection Agency (EPA) regulations, Food Act and Buildings Control Act. These, along with many others, have been the contributing factor to employment numbers and corporate expenses increasing in local government generally. Council has recently undertaken an organisational review of all Council staff which has seen streamlined operations with a decrease in high level positions. However, staffing levels must be maintained to meet our legal requirements as well as deliver the fantastic services to the Community that we currently do. The Budget has been prepared using a bottom up approach whereby all cost elements such as employee costs, materials and services etc. are distributed to each project and the relevant cost centre with Cost Centre and Project budgets being established. Budget documents are detailed with accompanying explanatory notes. The Telstra Project, which is an operational expense, is separately highlighted for given its size and one-off nature to highlight Councils “normal” operation. Council’s $770k contribution will be accounted for in the 2018 and 2019 financial years and beyond.


In addition, the budget should be seen in context with a more up to date Asset Management and Long Term Financial Plan. Although not as detailed as required under the relevant Ministerial Orders, it nevertheless provides a sound way forward. A snapshot of some of the key features within the budget are highlighted as follows.

Cash Management

Starting the reversal of the decline in Council’s cash position is the key feature of the Budget. It is a feature that Council has been working on for some time. As indicated in Budget Documents this must be started now but cannot be achieved for a number of years. For 2018/19 this includes consideration of various one-off expenditure impacts the most significant of which is the Telstra Telecommunications Project, increased rates and airport income and the short-term deferral of a number of capital projects into the out years. The Impact of the assumptions on the Liquidity of the Council funds, indicate that the years between 2022 and 2024 will hover on the base minimum reserve of $1.7 million. This is due to the cost of the Airport Runway ($1.8million). The decline of funds since 2015 has impacted the future liquidity, and it will take 19 years to restore the levels of Investments held at 2015. The Minimum Reserve of $2m has been revised to $1.7m as the Budget 2018/19 depreciation has been reduced by $300k to align with the finalised year end 2018 depreciation. The reduction of depreciation therefore sets a new reference point for the break-even level. Impact is as illustrated below.

Significant One-Off Projects

Whilst not necessarily representing the complete picture, the significance of Council’s $770k contribution to the Telstra Telecommunications Project to the challenges that it has placed on Council’s budget is illustrated in the following analysis of Council’s underlying surplus (deficit). Depreciation, which as a non-cash item, has been excluded.


Rate Revenue

As indicated in Council’s Rating Strategy Overview August 2019 document, Council has carefully analysed its rating structure, growth in valuations and level of rating including benchmarking with other local governments before concluding that there is justification for above inflation increases in 2018/19 and potentially beyond. In determining the General Rate increase, Council considered numerous factors including the existing projected level of cash reserves, benchmarking with other Councils, inflationary impacts, previously committed projects and Enterprise Bargaining Increases. Before incorporating an increase in rates by an amount, excluding natural growth, of 9.0% into the budget, options for having a reduced figure and phasing this in over several years were considered and preferred. However, given the significance of the level of decline in Council’s financial reserves and budget commitments over the next 3-4 years, this option is not considered viable as it would have hamstrung future operations and put the financial viability of the Council at significant risk. Council is also required under the Fire Service Act 1979 to collect funds for fighting services throughout the State. The amount generated, less legislated costs, will be forwarded to the State Fire Commission . As indicated below this increase starts the process of lifting Council’s rating effort to be more in line with other Council’s classified in the rural agricultural small and medium (RASM) classification.

-600

-400

-200

0

200

400

600

800

1000

2014 2015 2016 2017 2018 2019

Surplus (Deficit) excluding Depreciation

Normal Operations Including Telstra Project


Source Rates Snapshot 2016-17 – Local Government Division Department of Premier in Cabinet

Flinders Council’s 2018/19 Budget

Distribution of rates throughout the community is shown in the following graph

Rates are understandingly potentially an emotive issue but in context the value for money proposition is significant. For instance: A Ratepayer’s contribution to maintain and use over $62m value in assets and facilities plus access a range of operational services is as follows

• Average Residential Property (approx. CV $242,000)

Rates Total $1,282 equates to a $24.64 per week, an increase of $1.92 per week from 2017/18.

• Average Primary Production Property (approx. CV $442,000)

Rates Total $2,115 equates to $40.67 per week, an increase of $3.50 per week from 2017/18.

Following modelling the general rate has also been varied with a higher differential applying for various commercial properties with slight reductions for residential land uses and for land

0%

10%

20%

30%

40%

50%

60%

70%

80%

Rate revenue as a percentage of operating revenue

$0

$500

$1,000

$1,500

$2,000

$2,500

Commercial CommunityServices

Industrial Other Residential PrimaryProduction

Vacant Land

Average Rates $


located at Cape Barren Island. Rates for individual properties will naturally be affected by any changes to property valuation plus the level of valuation and changes via the rating system. Details of amounts of Rate Revenue are shown in Budget Appendix 1. The following Rates and Charges Summary has been incorporated into the 2018/19 Budget.

Rate Type

Fire Services Levy

Minimum amount $40

Rate cents in the $ of Assessed Annual Value 0.362090

General Rate

Fixed Charge $380

General Rate cents in the $ of Assessed Capital Value 0.392697

Variations from General Rate

Location Land Use Rate c in $ per CV

Flinders Island Bass Strait Islands Commercial General 0.471236

Commercial - Hotel / Motel 0.510506

Commercial Transport - Aviation 0.530141

Residential 0.373062

Cape Barren Island Commercial General 0.431966

Residential 0.333792

Community Services, Industrial, Primary Production & Vacant Land

0.353427

Airport Operations

At the June 2019 Council Meeting in reviewing its overall fees and charges, Council increased the Passenger Tax from $6 to $9. This was the first increase for 3 years and is well within the range of charges set at similar airports. This has been incorporated into the 2018/19 Budget. Council considered that the impact of this increase and the level of fees charged to be extremely modest compared with the general $188 - $255 airfare. Other fees such as landing fees have remained at current levels. Council’s Airport Operations has a $196k Annual Operating loss which over time will need to be addressed in part through a more regular review of Airport Fees and Charges. On a cash basis however, operations show a $138k surplus. As always however the potential Achilles heel is the significant costs to reconstruct the Airport Runway, a situation which places significant burden on Council’s meagre resources; even with a potential 50% grant subsidy via the Australian Government’s Remote Airport Access Scheme.

Private Works

Due to the decline in capital works required by the Department of State Growth due to less reconstruction work on Lady Barron Road, Private Works fees have declined by some $273k.


Operating Income

Council continues to look at opportunities for increasing revenue. Council’s operating income is made up of the following:

Operating Expenses

A thorough review of all operating expenses has been undertaken including the following:

• Optimising staff resources through reductions in the costs for senior management being taken up with a slight increase in lower level staff members. Council has a very small contingent of full-time employees (13) compared to its FTE of 26.1 (Budget Appendix 6).

• Reducing recurrent contractor expenses and including a number of one-off consultant expenses associated with pre-committed projects such as the Flinders Business Economic Social Structural Review Project, Strategic Planning Actions and New Elected Member Training (Budget Appendix 7).

• Rationalisation of works, especially for expenses on Buildings and Facilities that were previously classified as capital renewal / replacement but should be correctly included in operating expenses.

• Desktop review of depreciation expenses. Further analysis will be required during the year.

Council’s operating expenses are made up of the following:

Rates and charges, 46.2%

Statutory fees and fines, 1.1%

User fees, 18.8%

Grants, 29.5%

Interest, 2.0%

Other Income, 1.1%

Water Corporation Investment

Revenue, 1.4%

Employee Benefits, 34.8%

Materials & Services, 33.2%

Depreciation, 30.5%

Finance Costs, 1.6%


Income and Expenditure by Function

Detailed explanation of the following Income and expenditure by function on a total and cash basis is detailed in Appendix 5.

Capital Works

Detailed explanation of Council’s Capital Works Program is detailed under the Budget CAPITAL BUDGET. Excluding the Telstra Telecommunications Project ($770k), which is an operational expense, the Capital Budget includes the following:

• Footpaths and Kerb and Channel Program ($128k)

• Buildings & Facilities Upgrade to Emita Hall, Airport Fence and Whitemark Playground ($352k)

• Roads Resheeting $298k

• Waste Management improvements to build a new putrescible cell, rehabilitate the existing cell and purchase of a second-hand baler ($250k). This is the first stage of a potential revamped waste management strategy that can be migrated to a final configuration in the next few years as details are further developed. It is the minimal approach that needs to be taken now to avoid non-compliance with the Environment Protection Authority waste licence conditions.

• Other Roads to Recovery Road expenses which are required to acquit Council’s 2004-2009 Roads to Recovery Grant obligations.

Loans

Council is not proposing to take out any loans during the year. Council’s current loans are as follows:

Loan Amount Start Date End Date Interest Type

Loan Balance as at

30th June 2018

Northern Tasmanian Economic Stimulus Package

$170,000 1/06/2017 1/06/2019 Interest periodically

refunded

$170,000

$155,000 1/06/2017 1/06/2020 $155,000

$80,000 1/06/2017 1/06/2020 $80,000

$567,000 1/06/2017 1/06/2022 $567,000

$350,000 1/06/2017 1/06/2022 $350,000

$125,000 1/06/2017 1/06/2022 $125,000

Tasmanian Public Finance Corporation

$700,000 18/11/2015 18/11/2030 Interest Plus Principle

$609,481

Totals $2,147,000 $2,056,481

Other Budget Information

A raft of other budget related documents including 20-year long term operational income and expenses, capital works, and cashflow program and analysis is also included in the Budget Estimate documents.

Reference Documents

Council’s Budget has been prepared in conjunction with various Council Reference Documents including the Rating Strategy Overview and Asset & Financial Management Strategies & Plans.


Budget Documents

BUDGET DOCUMENTS

Flinders Council

BUDGET 2019

Incorporating Long Term Asset & Financial Management Plans

CONTENTS Pages

BUDGET 2019 - Income and Expenditure and Other Comprehensive Income 2

BUDGET 2019 - Summarised Overview 3

Appendix 1 - Rates and Charges 4

Appendix 2 - User Fees and Charges 4

Appendix 3a - Grants- Operational 4

Appendix 3b - Grants- Capital 5

Appendix 4 - Other Income 5

Appendix 5 - Department Income and Expenditure 6

Appendix 6 - Employee Benefits 8

Appendix 7 - Materials and Services 9

BUDGET 2019 - Full Capital Program 10

BUDGET 2019 - Full 20 Year Capital Program 13

BUDGET 2019 - Waste Cost Summary 16

BUDGET 2019 - Capital Budget % Split 17

BUDGET 2019 - Finance Cash Management 18

BUDGET 2019 - Finance Cash Management 20 Year Outlook 19

BUDGET 2019 - Cashflow Impact on Investments and Loan's Summary 20

Flinders Council

BUDGET 2019 - Income and Expenditure and Other Comprehensive Income

Appendix 2018

Budget

2018

Revised

Budget

2018 -

Actual

Projected

2019

Budget

000's 000's 000's 000's

Income from continuing operations

Recurrent Income

Rates and charges 1 1,596 1,633 1,597 1,768

Statutory fees and fines 46 46 46 41

User fees 2 978 981 921 720

Grants - Operational 3a 976 975 1,698 1,128

Interest 180 110 130 75

Other income 4 28 33 31 42

Investment revenue from water corporation 54 54 54 54

3,857 3,832 4,478 3,828

Capital income

Grants Capital 3b 444 414 529 428

Net gain/(loss) on disposal of property, infrastructure,

plant and equipment

- - 98 30

Recognition of land under roads - - - -

444 414 627 458

Total income from continuing operations 4,301 4,246 5,105 4,287

Expenses 5

Employee benefits 6 (2,241) (2,248) (2,022) (2,188)

Materials and services 7 (2,054) (2,039) (1,917) (2,097)

Impairment of debts - - (36) 0

Depreciation and amortisation (1,443) (1,606) (1,813) (1,618)

Finance costs (32) (86) (66) (101)

Other expenses (36) (21) (0) 0

Total expenses from continuing operations (5,806) (6,000) (5,853) (6,003)

Net result for Continuing Operations (Excl Telstra

Project)

(1,505) (1,754) (749) (1,717)

Telstra Project Income 3,445 4,785

Telstra Project Expenditure (3,650) (5,350)

(205) (565)

Net result for the year (Incl Telstra Project) (1,505) (1,754) (954) (2,281)

Page 2

Flinders Council

BUDGET 2019 - Summarised Overview

Budget 2019 Crossover

Adjustments

Yr18/19

Operational Operational

Project Telstra

Capital

Projects

2019 Budget

Total

000's 000's 000's 000's

Income Note 1 681 3,828 4,785 458 9,753

Expenditure - Cash elements

Airport (339) (339)

Buildings & Facilities (199) (199)

Community Economic Development (382) (382)

Corporate (1,319) (1,319)

Depot (114) (114)

Governance (376) (376)

Parks & Gardens (133) (133)

Strategic Planning & Development (445) (445)

Plant -Plant Exp (259) (259)

Private Works (96) (96)

Quarries (30) (30)

Roads & Streets (458) (458)

Waste Management (238) (238)

-

Telstra project (5,350) (5,350)

Capital Projects (984) (984)

- (4,386) (5,350) (984) (10,720)

Net Cash Income/(deficit) 681 (558) (565) (525) (966)

Note 1 Note 2 Note 3

App5 App5

Expenditure - Non Cash elements

Depreciation Note 4 (1,618) (1,618)

Plant and Quarry Internal transfers (285) (285)

(1,618) - (285) (1,903)

Net Result 681 (2,175) (565) (810) (2,869)

Note 1 - FAGS Grant Income of $681k for the Budget 2019 was received in June 18 and is reflected in the 2018 results, this

however relates to the year 2019.

Note 2 -The Telstra Project has and overall deficit of $770k over the two years 2018 and 2019.

Note 3 -The total budget Deficit, only represents the Budget position of Cash income Vs Cash Expenditure. It is not a

Complete Cash Flow, as it does not take into account Loan repayments. This will require a separate exercise

Note 4 - The Budget 19 Depn assumes the same level as 2018 except for an extra $100k for the revaluation of the airport

infrastructure.

Page 3

Flinders Council


2018 Budget 2018

Revised

Budget

2018 -

Actual

Projected

2019

Budget

000's 000's 000's 000's

Appendix 1 - Rates and Charges

Rates - General Rate Note 1 1,533 1,567 1,553 1,705

Rate - Fire Levy 63 64 65 66

Rate - Waste Management Rate - - - -

Rates - Pensioner Remission - Fire Levy - - (1) (1)

Rates - Pensioner Remission - State Govt. 30% - - (2) (2)

Rates received in advance - 2 (18) -

1,596 1,633 1,597 1,768

Appendix 2 - User Fees and Charges

Airport Fees & Charges 316 319 306 370

Cemetery Fees 32 32 11 15

Environment 12 12 7 7

Equipment Hire 4 4 3 3

Planning & Building 24 24 14 14

Private Works Note 1 562 562 563 290

Property Certificates - - - -

Rent Received 25 25 14 21

Other User fees and Charges 4 4 1 -

978 981 921 720

Appendix 3a - Grants- Operational

Grants - Financial Assistance Note1 669 668 1,332 681

Grants - Heavy Vehicle Motor Tax - 200 210 210

Grants - Operational GST Inc Note2 107 107 113 130

Grants - Operational GST Free Note3 200 - 44 107

976 975 1,698 1,128

Note 1: Rates in the 2019 Budget include a 9 % increase

Note1: Private Works has declined signifantly to normal levels as compared to 2018 due to less reconstruction work

on Lady Barron Road.

Note 1 - FAGS Grant Income of $681k for the Budget 2019 was received in June 18 and is reflected in the 2018

results, this however relates to the year 2019, therefore the Budget 2019 is only representing 6months Grant

income.

Note2: The Budget for $130k in 2019 is for the RFDS Grant.

Note3: $107k Budget 2019 comprises the balance of $11k for the RAAP fencing Grant and $52k Grant for the

Flinders Business economic social structural review, and $43k for Grant Interest Income reclaimed on Loans.

Page 4

Flinders Council


2018 Budget 2018

Revised

Budget

2018 -

Actual

Projected

2019

Budget

000's 000's 000's 000's

Appendix 3b - Grants- Capital

Grants - Capital Projects GST Inc 50 20 112 220

Grants - Capital Projects GST Free - - - -

Grants - Roads to Recovery 394 394 417 209

444 414 529 428

Appendix 4 - Other Income

Contributions 11 9 8 7

Other Revenue - GST Inc Note1 9 12 14 33

Other Revenue - GST Free 9 13 10 2

Bad Debts Recovered - (1) (0) -

Insurance Recoveries - - - -

28 33 31 42

Note1: This is mainly Rent income for the Works Depot area

Page 5

Flinders Council

BUDGET 2019 - Income and Expenditure and Other Comprehensive IncomeAppendix 5 - Department Income and Expenditure

Department & Description 2018

Actual

Projected

Expenses

2019

Budget

Expenses

Variance % 2019

Income

Budget

2019

Budget

Expenses

2019 Net

Result before

Depn and

Recharges

2019

Plant Hire

Internal

Recharges

2019

Quarry

Internal

Recharges

2019

Budget

Depn

2019Net

Result incl

Depn and

Recharges

Airport (313) (339) (25) 8% 477 (339) 138 (35) (1) (299) (196)

Airport -Administration (99) (140) (41) 477 (140) 337 (9) 0 0 328

Airport -Buildings (0) (4) (4) 0 (4) (4) 0 0 (299) (303)

Airport -Grounds (79) (49) 30 0 (49) (49) (16) 0 0 (65)

Airport -Other (1) 0 1 0 0 0 0 0 0 0

Airport -Runway (125) (127) (2) 0 (127) (127) (10) (1) 0 (137)

Airport -Terminal (8) (18) (11) 0 (18) (18) (0) 0 0 (19)

Buildings & Facilities (139) (199) (60) 43% 24 (199) (174) (3) 0 (61) (238)

Buildings & Facilities -Administration (0) (58) (58) 24 (58) (34) 0 0 0 (34)

Buildings & Facilities -Council Buildings (78) (54) 24 0 (54) (54) (0) 0 (5) (59)

Buildings & Facilities -Halls (5) (26) (21) 0 (26) (26) (0) 0 (50) (76)

Buildings & Facilities -Houses (9) (11) (2) 0 (11) (11) 0 0 0 (11)

Buildings & Facilities -Other (4) (15) (11) 0 (15) (15) (0) 0 (6) (22)

Buildings & Facilities -Public Toilets (11) (7) 3 0 (7) (7) (1) 0 0 (8)

Buildings & Facilities -Recreation Facilities (31) (27) 4 0 (27) (27) (1) 0 0 (28)

Community Economic Development (373) (382) (9) 2% 130 (382) (253) (2) 0 (5) (260)

Community Development -Administration (157) (161) (4) 130 (161) (32) (2) 0 (5) (39)

Community Development -Cultural Development 0 (4) (4) 0 (4) (4) 0 0 0 (4)

Community Development -Economic Development (50) (27) 23 0 (27) (27) 0 0 0 (27)

Community Development -Events (49) (37) 12 0 (37) (37) (0) 0 0 (37)

Community Development -Health (97) (115) (18) 0 (115) (115) 0 0 0 (115)

Community Development -Other (8) (16) (8) 0 (16) (16) 0 0 0 (16)

Community Development -Youth (12) (22) (10) 0 (22) (22) 0 0 0 (22)

Corporate (1,005) (1,319) (314) 31% 2,261 (1,319) 942 (3) 0 (11) 928

Corporate -Administration (954) (1,047) (93) 2,261 (1,047) 1,213 (3) 0 (8) 1,203

Corporate -Corporate Services 0 0 0 0 0 0 0 0 0 0

Corporate -Emergency Management (3) (2) 1 0 (2) (2) 0 0 (3) (5)

Corporate -Employment Oncosts 0 0 (0) 0 0 0 0 0 0 0

Corporate -Finance Operations 0 (259) (259) 0 (259) (259) 0 0 0 (259)

Corporate -Human Resources (48) (10) 38 0 (10) (10) 0 0 0 (10)

Depot (178) (114) 64 -36% 0 (114) (114) (13) 0 (8) (135)

Depot -Works Administration (47) (6) 41 0 (6) (6) (10) 0 0 (16)

Depot -Works Maintenance (131) (108) 23 0 (108) (108) (2) 0 (8) (119)

Governance (511) (376) 135 -26% 0 (376) (376) (12) 0 (5) (392)

Governance -Administration (399) (238) 162 0 (238) (238) (12) 0 (5) (254)

Governance -Audit Panel 0 (4) (4) 0 (4) (4) 0 0 0 (4)

Governance -Civic Expenses (112) (134) (22) 0 (134) (134) 0 0 0 (134)

Governance -Gov-Community Support 0 0 0 0 0 0 0 0 0 0

Parks & Gardens (104) (133) (29) 28% 15 (133) (118) (10) 0 0 (127)

Parks & Gardens -Administration (7) (22) (15) 15 (22) (7) 0 0 0 (7)

Parks & Gardens -Cemetries (12) (14) (3) 0 (14) (14) (1) 0 0 (16)

Parks & Gardens -Lady Barron (12) (30) (18) 0 (30) (30) (2) 0 0 (32)

Parks & Gardens -Other 0 0 0 0 0 0 0 0 0 0

Parks & Gardens -Whitemark (73) (67) 6 0 (67) (67) (6) 0 0 (74)

Strategic Planning & Development (405) (445) (40) 10% 54 (445) (390) (5) 0 (1) (397)

Planning & Development -Administration (6) (146) (141) 0 (146) (146) 0 0 0 (146)

Planning & Development -Building Services (91) (64) 27 15 (64) (49) (2) 0 (1) (52)

Planning & Development -Environment (31) (4) 27 7 (4) 3 (0) 0 0 2

Planning & Development -Other 0 0 0 0 0 0 0 0 0 0

Planning & Development -Planning (177) (104) 73 32 (104) (71) (3) 0 0 (75)

Planning & Development -Stategic Planning (100) (126) (26) 0 (126) (126) 0 0 0 (126)

Plant -Plant Exp (395) (259) 137 -35% 0 (259) (259) (0) 0 (269) (528)

Plant -Plant Exp- Chargeable (266) (190) 76 0 (190) (190) (0) 0 (269) (460)

Plant -Plant Exp - Non Chargeable (130) (69) 61 0 (69) (69) (0) 0 0 (69)

Private Works (266) (96) 171 -64% 290 (96) 195 (27) 0 0 168

Private Works -Private Works (266) (96) 171 290 (96) 195 (27) 0 0 168

Quarries (39) (30) 9 -22% 0 (30) (30) (79) 0 0 (109)

Quarries -Canns Hill 0 (13) (13) 0 (13) (13) 0 0 0 (13)

Page 6

Flinders Council

BUDGET 2019 - Income and Expenditure and Other Comprehensive IncomeAppendix 5 - Department Income and Expenditure

Department & Description 2018

Actual

Projected

Expenses

2019

Budget

Expenses

Variance % 2019

Income

Budget

2019

Budget

Expenses

2019 Net

Result before

Depn and

Recharges

2019

Plant Hire

Internal

Recharges

2019

Quarry

Internal

Recharges

2019

Budget

Depn

2019Net

Result incl

Depn and

Recharges

Quarries -Lughrata (39) (14) 25 0 (14) (14) (79) 0 0 (93)

Quarries -Other 0 (3) (3) 0 (3) (3) 0 0 0 (3)

Roads & Streets (287) (458) (171) 60% 578 (458) 120 (128) (10) (942) (960)

Roads & Streets -Administration (36) (125) (89) 578 (125) 453 0 0 (800) (347)

Roads & Streets -Boat Ramps 0 (2) (2) 0 (2) (2) 0 0 (2) (4)

Roads & Streets -Bridges 0 (15) (15) 0 (15) (15) 0 0 (85) (99)

Roads & Streets -Sealed Roads (146) (153) (7) 0 (153) (153) (40) 0 0 (192)

Roads & Streets -Unsealed Roads (95) (139) (44) 0 (139) (139) (88) (10) (7) (243)

Roads & Streets -Township Streets (11) (25) (14) 0 (25) (25) (1) 0 (29) (55)

Roads & Streets -Other 0 0 0 0 0 0 0 0 (19) (19)

0 0 0 0 0 0 0 0 0 0

Waste Management (126) (238) (113) 90% 0 (238) (238) (59) (2) (16) (316)

Waste Management -Administration (15) (116) (101) 0 (116) (116) 0 0 (16) (132)

Waste Management -Recycling (2) (3) (1) 0 (3) (3) 0 0 0 (3)

Waste Management -Waste Collection (50) (44) 5 0 (44) (44) (45) 0 0 (89)

Waste Management -Waste Disposal (59) (75) (16) 0 (75) (75) (14) (2) 0 (92)

Plant and Quarry Internal Recharges 0 0 0 0 0 0 376 13 0 389

Plant Hire Internal Recharges 0 0 0 0 0 0 376 0 376

Quarry Internal Recharges 0 0 0 0 0 0 13 0 13

TOTAL OPERATIONAL EXCL TELSTRA (4,140) (4,386) (246) 6% 3,828 (4,386) (558) 0 0 (1,618) (2,175)

TELSTRA Operational Project (3,650) (5,350) (1,700) 4,785 (5,350) (565) 0 0 0 (565)

Telstra (3,650) (5,350) (1,700) 4,785 (5,350) (565) (565)

0 0

TOTAL OPERATIONAL INCL TELSTRA (7,790) (9,736) (1,946) 8,614 (9,736) (1,122) 0 0 (1,618) (2,740)

Net Cash Deficit Net Deficit

Page 7

Flinders Council


2018

Budget

2018

Revised

Budget

2018

Actual

Projected

2019

Budget

000's 000's 000's 000's

Appendix 6 - Employee Benefits

Employment Labour Costs Note1 & 3 (2,212) (2,219) (1,993) (2,155)

Employment Other Costs Note 2 (29) (29) (29) (33)

(2,241) (2,248) (2,022) (2,188)

Note 1:

Approximate Department Split (Actual

Internal Allocations will alter split )

FTE's

2018

FTE's

2019

2018

Actual

Projected

2019

Budget

Airport 1.2 (115)

Buildings & Facilities 3.1 (222)

Cemeteries 0.0 -

Community Economic Development 2.2 (176)

Corporate 7.4 (699)

Depot 1.0 (74)

Emergency Management 0.0 -

Governance 0.8 (77)

Parks & Gardens 2.0 (139)

Strategic Planning & Development 1.4 (135)

Plant 0.0 -

Private Works 0.0 -

Quarries 0.0 -

Roads & Streets 6.3 (468)

Township Streets 0.0 -

Waste Management 0.7 (51)

21.7 26.1 (1,993) (2,155)

Part and Full time FTES (excl Casual) 19.2 24.9

Note 2:

Note 3:

Employment Other Costs include costs such as FBT Costs, Medical Expenses, Staff Training and Staff

Uniforms

FTES 2018, and the Annual Projection 2018 has no breakdown -as positions and departments have been

restructured

Page 8

Flinders Council


2018

Budget

2018

Revised

Budget

2018

Actual

Projected

2019 Budget

Note 000's 000's 000's 000's

Appendix 7 - Materials and Services

Administration Costs 1 (198) (219)

Advertising (62) (23)

Audit, Insurance and Legal (183) (166)

Consulting Services 2 (170) (293)

Contractor Services (468) (461)

Council Member Costs (109) (113)

Leases and Levys and Licence Fees (76) (80)

Materials and Equipment (345) (321)

Other Costs 1 (114) (122)

Repairs and Maintenance 3 (89) (174)

Travel Costs (67) (89)

Utility Costs (Gas, Electricity & Water) (34) (37)

(2,054) (2,039) (1,917) (2,097)

Note 1:

Note 2:

Note 3:

Administration Costs include IT expenses, Printing, Stationary, Photocopying, Telephone, Internet, Subscriptions and Cleaning

Other Costs include General expenses, Settlement Discounts on Rates , Land Tax, External Training, and Donations

Consulting Costs in 2019 have the following one-off costs totalling $75k which are not planned to repeat , so are part of the

reduction program in the next 5 year long term Financial Plan:$62.5k Flinders Business Economic Social Structural Review ($50k

grant was provided) so net cost $12.5k; $5k Airport Master plan, $15k for New Elected Council; $43k Land Use Planning and Esk

mapping.

Repairs and Maintenance is significantly higher due to detailed examination of assets, Buildings, Plant and Airport, which require

maintenance. Many items have significant values but cannot be capitalised as the nature of expenditure is a repair and upkeep of

the asset.

Page 9

BUDGET 2019 - Full Capital Program

TOTAL CAPITAL AS PER FULL CAPITAL PROGRAM % Inhouse

Labour and

Plant costs

% Cash Exp for

External Mats

and Svcs

Program Risk

indicator2019

000's

Classification Comments for Budget 2019 Total Capital 1,269

Cash Cost for External Material & Services ( NIL Inflation 984

Cash Cost for External Material & Services ( WITH INFLATION) 984

ROADS - RESHEETING Total Capital 85% 15.0% 317

Cash Cost for External Material & Services 48

Category 1 - High Road Use Category 1 High Road Use comprise: Palana Rd , Coast Rd , Trousers Point Rd. Note that the roads resheeting program has

been increased from the normal base in 2019 by $45k to meet the Roads to recovery program.

Good 75

Category 2 - Medium Road Use Category 2 Medium road Use comprise :Killiecrankie, Lees,Melrose,West End,Port Davies,Memana,North East River,Badger

Corner,Camerons Inlet

Good 104

Category 3 - Low Road Use Category 3 Low Road Use comprise: Allports Beach,Fairhaven,Cemeteries,Pot Boil,Walkers Lookout,Wingaroo,Andersons,Big

River,Blundstones, Boat Harbour,Boyes,Butterfactory,Conways,Dutchman,Edens,Five Mile, JimFowlers,Golden

Mile,Harleys,Haulands, Gap,Logan, Lagoon,Long Point,Madeleys,Maynards,Thule,Manns,Reedy, Lagoon,Summers,Summer

Camp,Virieux, Wallinippi,Bluff,Cooks Lane,Darts,Hinds,Patriach River,Sawyers Bay,Willis,Wireless

Hill,WoodsSlipway,Smiths,OTHER

Good 137

ROADS - RESEALS Total Capital 25% 75.0% 64


Category 1 - High Road Use Nothing Planned until 2020 Good -

Category 2 - Medium Road Use Good 64

Category 3 - Low Road Use Good -

ROADS - RECONSTRUCTION Total Capital 15% 85.0% -

Cash Cost for External Material & Services -

Category 1 - High Road Use We removed $188k from the program in 2019 Good -

Category 2 - Medium Road Use Good -


Airport RunWay Minimum -

ROADS - CONSTRUCTION Total Capital 15% 85.0% -

Cash Cost for External Material & Services -

Category 1 - High Road Use Not in the Budget until 2030 Below -

Category 2 - Medium Road Use -

Category 3 - Low Road Use -

Page 10


Labour and

Plant costs

% Cash Exp for

External Mats

and Svcs

Program Risk

indicator2019

000's

ROADS - FOOTPATHS Total Capital 0% 100.0% 128


Footpaths- Whitemark & Lady Barron This has been reduced to $5k a year until 2024, then from 2024 a budget of $27k (Whitemark $18k and Lady Barron $9k) Good 5

Whitemark School Track Complete Walking Track - $13000 to complete - note Grant of $50000 is due to be received in 2019. -Total cost of Track 78000

over 2018 and 2019

Good 13

Pedestrian Crossings- Whitemark & Lady Barron Whitemark - $10k and nothing for Lady Barron Good 10

Curbs & Gutters- Whitemark & Lady Barron West St Lady Barron $50k and James Court $50k Good 100

ROADS - BRIDGES Total Capital 0% 100.0% 65


Category 1 - High Road Use Bridges CF outstanding left to do from 2018 Good 65

Category 2 - Medium Road Use Good -


PLANT - MUNICIPAL Total Capital 0% 100.0% 42


Municipal Heavy Equipment Good -

Municipal Roller Good -

Municipal Trailer Good -

Municipal Truck Good -

Municipal Vehicle PLTUT5 - Toyota Hilux Dual Cab C92HW eplacement 0 was purchased in 2010 Good 42

Municipal Other Good -

PLANT - AIRPORT Total Capital 0% 100.0% 30


Airport Heavy Equipment Good -

Airport Roller Good -

Airport Other Airport Fuel Facility refurbishment Good 30

Page 11


Labour and

Plant costs

% Cash Exp for

External Mats

and Svcs

Program Risk

indicator2019

000's

BUILDINGS & FACILITIES Total Capital 0% 100.0% 352


Buildings & FacilitiesHalls-TMTLH1 - Lady Barron Hall Lady Barron Hall replacing kitchen windows and Doors . Comm Infrastructure Grant $5986 was a grant for the whole project

received previously for $37 - but this still has to be spent to acquit grant

Good 6

Buildings & FacilitiesHouses-TMTH3 - Martin Street Ducting ventilation $1800 Good 2

Buildings & FacilitiesPublic Toilets-TMTPT1 - Public Toilets - All 4 All Public Toilets - Parking and disabled access $20k; Cape Barron River BBQ and Toilet, we spent $10k in 2018, Balance left

is $80k; Whitemark Foreshore project - handrails /steps to toilet $6k

Good 106

Buildings & FacilitiesRecreation Facilities-TMTMAS2 - Maintenance - Emita Sports

Ground

Emita Hall Kitchen and $67k waste upgrade: $178014 cost less Grant $81818 Net Cost $96196k Good 99

AirportTerminal-AIRTB1 - Airport - Terminal Building Airport Animal Wildlife fence $50k; Airport Emergency Runway patch replacement $15k; Airport Vending Machine replacement

$8k; Airport terminal Baggage Gates $4k; Other Furniture and fittings $6k; Airport - Airport Entrance Fence Signage $5k

Good 88

Roads & StreetsBoat Ramps-TMTMAB1 - Maintenance - Boat Ramps Rubber Fenders whitemark $2000 Good 2

Buildings & FacilitiesRecreation Facilities-No Code - Playground -Whitemark Whitemark Playground - $130681k less grant $81818k = cost $48863k in 2019 Good 49

WASTE Total Capital 0% 100.0% 250


Option 4 : Option 3 migrating to option 2 within 4 years Build Cell,Ponds, Rehab existing $130k;New Baler $120k Good 250

IT COMPUTERS, TELEPHONES AND FURN & FITTINGS Total Capital 0% 100.0% 22


IT, Computers Internet and Telephones Hardware - Server- Current Server about 8 Years old so needs replacing $8k;Hardware - Laptops x 3 $7k; Hardware - Internet

Link (Main Office to Works Depot) $2k; Telephones, Mobiles and other $3k

Good 20

Furniture and Fittings Minimum 2

Note: For Future Projects refer to the Capital 20 year program

Page 12

inflation 0% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2%

BUDGET 2019 - Full 20 Year Capital Program multiplier 100% 102% 104% 106% 108% 110% 112% 114% 116% 118% 120% 122% 124% 126% 128% 130% 132% 134% 136% 138% 140%


Labour and

Plant costs

% Cash Exp for

External Mats

and Svcs

Program

Risk

indicator2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 TOTAL

CLASSIFICATION 000's 000's 000's 000's 000's 000's 000's 000's 000's 000's 000's 000's 000's 000's 000's 000's 000's 000's 000's 000's 000's

Total Capital 1,269 1,097 741 3,028 1,201 1,489 868 1,349 1,433 978 1,991 1,854 1,818 1,961 2,884 1,562 1,727 1,767 1,698 1,407 2,122 34,244

Cash Cost for External Material & Services ( NIL Inflation 984 770 403 2,423 886 1,151 571 1,008 1,135 620 1,694 1,473 1,278 1,435 2,254 1,164 1,310 1,352 1,282 1,002 1,658 25,852

Cash Cost for External Material & Services ( WITH INFLATION) 984 785 420 2,568 957 1,266 639 1,149 1,317 731 2,033 1,797 1,585 1,808 2,886 1,513 1,729 1,812 1,744 1,382 2,322 31,426

-

ROADS - RESHEETING Total Capital 85% 15.0% 317 317 317 317 317 317 317 317 317 317 317 317 317 317 317 317 317 317 317 317 317 6,654

Cash Cost for External Material & Services 48 48 48 48 48 48 48 48 48 48 48 48 48 48 48 48 48 48 48 48 48 998

Category 1 - High Road Use Good 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 75 1,584

Category 2 - Medium Road Use Good 104 104 104 104 104 104 104 104 104 104 104 104 104 104 104 104 104 104 104 104 104 2,190

Category 3 - Low Road Use Good 137 137 137 137 137 137 137 137 137 137 137 137 137 137 137 137 137 137 137 137 137 2,879

ROADS - RESEALS Total Capital 25% 75.0% 64 120 159 150 71 164 - 176 - 242 - - 634 581 334 - 79 71 71 30 263 3,209

Cash Cost for External Material & Services 48 90 119 113 53 123 - 132 - 181 - - 475 436 250 - 59 53 53 23 197 2,406

Category 1 - High Road Use Good - 79 151 90 - 119 - 143 - - - - 570 581 274 - 79 71 71 - 199 2,427

Category 2 - Medium Road Use Good 64 41 8 60 71 45 - 34 - 242 - - 64 - 60 - - - - 30 64 782

Category 3 - Low Road Use Good - - - - - - - - - - - - - - - - - - - - - -

ROADS - RECONSTRUCTION Total Capital 15% 85.0% - 188 188 1,988 188 188 188 188 188 188 188 188 188 188 1,288 188 188 188 188 188 188 6,667

Cash Cost for External Material & Services - 160 160 1,690 160 160 160 160 160 160 160 160 160 160 1,095 160 160 160 160 160 160 5,667

Category 1 - High Road Use Good - 188 188 188 188 188 188 188 188 188 188 188 188 188 188 188 188 188 188 188 188 3,767

Category 2 - Medium Road Use Good - - - - - - - - - - - - - - - - - - - - - -

Category 3 - Low Road Use Good - - - - - - - - - - - - - - - - - - - - - -

Airport RunWay Minimum - - - 1,800 - - - - - - - - - - 1,100 - - - - - - 2,900

ROADS - CONSTRUCTION Total Capital 15% 85.0% - - - - - - - - - - - 555 555 555 555 668 668 668 668 668 668 6,225

Cash Cost for External Material & Services - - - - - - - - - - - 472 472 472 472 567 567 567 567 567 567 5,291

Category 1 - High Road Use Below - - - - - - - - - - - 555 555 555 555 668 668 668 668 668 668 6,225

Category 2 - Medium Road Use - - - - - - - - - - - - - - - - - - - - - -

Category 3 - Low Road Use - - - - - - - - - - - - - - - - - - - - - -

ROADS - FOOTPATHS Total Capital 0% 100.0% 128 15 20 20 20 27 27 27 27 27 42 27 27 27 27 27 27 27 27 27 42 665


Footpaths- Whitemark & Lady Barron Good 5 5 5 5 5 27 27 27 27 27 27 27 27 27 27 27 27 27 27 27 27 457

Whitemark School Track Good 13 - - - - - - - - - 15 - - - - - - - - - 15 43

Pedestrian Crossings- Whitemark & Lady Barron Good 10 10 15 15 15 - - - - - - - - - - - - - - - - 65

Curbs & Gutters- Whitemark & Lady Barron Good 100 100 - - - - - - - - - - - - - - - - - - - 100

ROADS - BRIDGES Total Capital 0% 100.0% 65 40 - - 85 - - - - - - - - - - - - - - - - 190

Cash Cost for External Material & Services 65 6500% - - 85 - - - - - - - - - - - - - - - - 190

Category 1 - High Road Use Good 65 - - - - - - - - - - - - - - - - - - - - 65

Category 2 - Medium Road Use Good - 40 - - - - - - - - - - - - - - - - - - - 40

Category 3 - Low Road Use Good - - - - 85 - - - - - - - - - - - - - - - - 85

Page 13


Labour and

Plant costs

% Cash Exp for

External Mats

and Svcs

Program

Risk

indicator2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 TOTAL


PLANT - MUNICIPAL Total Capital 0% 100.0% 42 174 42 282 320 602 249 235 425 182 40 507 84 129 232 302 280 477 250 152 525 5,531

Cash Cost for External Material & Services 42 174 42 282 320 602 249 235 425 182 40 507 84 129 232 302 280 477 250 152 525 5,531

Municipal Heavy Equipment Good - - - 220 250 370 110 110 150 - - - - - - 220 250 120 250 110 305 2,465

Municipal Roller Good - - - - - - - - 25 - 984- - - - - - - - - - - 65

Municipal Trailer Good - - - - - - - 55 30 40 - 15 - 55 - - - 55 - - - 250

Municipal Truck Good - 120 - - 50 220 - 70 220 130 - 450 - - 170 - - 290 - - 220 1,940

Municipal Vehicle Good 42 42 42 42 - - 99 - - - - 42 84 42 42 42 15 - - 42 - 576

Municipal Other Good - 12 - 20 20 12 40 - - 12 - - - 32 20 40 15 12 - - - 235

PLANT - AIRPORT Total Capital 0% 100.0% 30 - - - - 95 - - 45 - 60 36 - - 100 15 - - - - 80 461

Cash Cost for External Material & Services 30 - - - - 95 - - 45 - 60 36 - - 100 15 - - - - 80 461

Airport Heavy Equipment Good - - - - - 80 - - - - 60 - - - - - - - - - 80 220

Airport Roller Good - - - - - - - - 45 - - - - - - - - - - - - 45

Airport Other Good 30 - - - - 15 - - - - - 36 - - 100 15 - - - - - 196

BUILDINGS & FACILITIES Total Capital 0% 100.0% 352 42 3 29 8 35 26 139 14 10 128 7 1 2 19 34 27 8 15 14 28 937


Buildings & FacilitiesCouncil Buildings-TMTCO - Council Office Good - 36 - 13 6 - 25 - - 5 70 - - - - - 25 - - 5 - 184

Buildings & FacilitiesCouncil Buildings-TMTWB - Works Buildings Good - - - - - - - 50 - - - - - - - - - - - - - 50

Buildings & FacilitiesCouncil Buildings-TMTWO - Works Office Good - - - 15 - - - - 12 - - - - - - - - - 15 - - 42

Buildings & FacilitiesHalls-TMTFAEC1 - FAEC Good - - - - - - - - - - 5 - - - - - - - - - 5 10

Buildings & FacilitiesHalls-TMTLH1 - Lady Barron Hall Good 6 - - - - - - - - - 11 - - - - - - - - - - 16

Buildings & FacilitiesHouses-TMTH1 - Robert Street Good - - - - - - 1 4 - - 6 - - - - 4 - - - - 6 21

Buildings & FacilitiesHouses-New - SES ( set up a code ) Good - - - - - - - - - - - - - - - - - - - - - -

Buildings & FacilitiesHouses-TMTH3 - Martin Street Good 2 - - 2 - - - 4 - - - 2 - - - 11 - - - 2 - 21

Buildings & FacilitiesOther-TMTAG - Art Gallery Good - - - - - - - - - - - - - - - - - - - - - -

Buildings & FacilitiesOther-TMTMAC1 - Maintenance - Child Care Centre Good - - - - - - - - - 5 - - - - - - - - - 5 - 10

Buildings & FacilitiesOther-TMTMU1 - Museum Building Good - - - - - 4 - - - - - - - - 11 10 - - - - 4 28

Buildings & FacilitiesPublic Toilets-TMTPT1 - Public Toilets - All 4 Good 106 - - - - - - 73 - - 1 - - - - - - - - - 1 181

Buildings & FacilitiesRecreation Facilities-TMTMAH1 - Maintenance -

Holloway Park

Good - - - - - - - - - - - - - - - - - - - - - -

Buildings & FacilitiesRecreation Facilities-TMTMAK1 - Maintenance- All

BBQs

Good - - - - - - - - - - - - - - - - - - - - - -

Buildings & FacilitiesRecreation Facilities-TMTMAS1 - Maintenance -

Whitemark Showgrounds

Good - - - - - 20 - - - - 23 - - - - - - - - - - 43

Buildings & FacilitiesRecreation Facilities-TMTMAS2 - Maintenance - Emita

Sports Ground

Good 99 - - - - - - - - - 3 - - - - - - - - - 3 105

Buildings & FacilitiesRecreation Facilities-TMTMAT1 - Maintenance - Tennis

Courts Lady Barron

Good - - - - - 2 - - - - - - - - - - - - - - - 2

Buildings & FacilitiesRecreation Facilities-TMTWG1 - Whitemark Gym Good - - 2 - - 2 - - 2 - - 2 - - 2 - - 2 - - 2 14

Buildings & FacilitiesRecreation Facilities-CDVLBGYM - Lady Barron

Community Gym

Good - 2 - - 2 - - 2 - - 9 - - 2 6 - 2 - - 2 7 34

AirportBuildings-AIROB1 - Airport - Office Building Good - - - - - - - - - - - - - - - - - - - - - -

AirportTerminal-AIRTB1 - Airport - Terminal Building Good 88 4 - - - 7 - - - - - 4 - - - 7 - - - - - 109

Roads & StreetsBoat Ramps-TMTMAB1 - Maintenance - Boat Ramps Good 2 - 1 - - - - 6 - - - - 1 - - 2 - 6 - - - 18

Buildings & FacilitiesRecreation Facilities-No Code - Playground -Whitemark Good 49 - - - - - - - - - - - - - - - - - - - - 49

Page 14


Labour and

Plant costs

% Cash Exp for

External Mats

and Svcs

Program

Risk

indicator2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 TOTAL


WASTE Total Capital 0% 100.0% 250 150 - 230 130 - - - 150 - 130 130 - 150 - - 130 - 150 - - 1,600

Cash Cost for External Material & Services 250 150 - 230 130 - - - 150 - 130 130 - 150 - - 130 - 150 - - 1,600

Option 4 : Option 3 migrating to option 2 within 4 years Good 250 150 - 230 130 - - - 150 - 130 130 - 150 - - 130 - 150 - - 1,600

SAFE HARBOUR Total Capital 0% 100.0% - - - - - - - 235 235 - - - - - - - - - - - - 470

Cash Cost for External Material & Services - - - - - - - 235 235 - - - - - - - - - - - - 470

Safe Harbour ( Mariner) - Start in 2026 - spread cost over 2 years Good - - - - - - - 235 235 - - - - - - - - - - - - 470

GENERAL COMMUNTY INFRASTRUCTURE Total Capital 0% 100.0% - - - - - - - - - - 1,000 - - - - - - - - - - 1,000

Cash Cost for External Material & Services - - - - - - - - - - 1,000 - - - - - - - - - - 1,000

General Community Infrastructure $1million in 2029 1,000 1,000

WHITEMARK FORESHORE AND STREETSCAPE REDEVELOPMENT Total Capital 0% 100.0% - - - - 50 50 50 20 20 - 75 75 - - - - - - - - - 340

Cash Cost for External Material & Services - - - - 50 50 50 20 20 - 75 75 - - - - - - - - - 340

Whitemark Foreshore Development -$30k over 3 years from 2022 total

$90000

Minimum - - - - 30 30 30 - - - - - - - - - - - - - - 90

Whitemark StreetScape Development - $20k per year for 5 years from 2022

total $100000

Minimum - - - - 20 20 20 20 20 - - - - - - - - - - - - 100

Whitemark Lagoon Road development - $75k per year for two years from

2029 total $150000

Minimum - - - - - - - - - - 75 75 - - - - - - - - - 150

IT COMPUTERS, TELEPHONES AND FURN & FITTINGS Total Capital 0% 100.0% 22 52 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 296


IT, Computers Internet and Telephones Good 20 50 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 264

Furniture and Fittings Minimum 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 32

Page 15

2019 Budget - Flinders Council - Waste Cost SummaryOption 1

To Continue what we are doing now but

place in a GCL lined cell instead

Option 2

To Collect, bale and place in GCL

lined cell

Cost Option 3

To keep transfer stations and bale all

waste to cell but take out cardboard

to store/shred

Cost Option 4 : Option 3 migrating to option 2

within 4 years - RECOMMENDED

Capital Costs - over 20 Years Capital Costs - over 20 Years Capital Costs - over 20 Years Capital Costs - over 20 Years

Plant - Cells x 12 $1,500,000 Plant - Cells x 4 $520,000 Plant - Cells x 6 $780,000 Plant - Cells x 4 $520,000

Plant - HookLift Trucks x 3 $450,000 Plant - HookLift Trucks x 1 $150,000 Plant - HookLift Trucks x3 $450,000 Plant - HookLift Trucks x 1 $150,000

Plant - 2nd Hand Collection Trucks N/A Plant - 2nd Hand Collection Trucks x 4 $570,000 Plant - 2nd Hand Collection Trucks N/A Plant - 2nd Hand Collection Trucks x 4 $570,000

Plant - Balers N/A Plant - Balers x 2 $230,000 Plant - Balers x 1 $120,000 Plant - Balers x 2 $250,000

Plant - Wheelie Bins N/A Plant - Wheelie Bins $110,000 Plant - Wheelie Bins N/A Plant - Wheelie Bins $110,000

Cost to Find New Site for Landfill $1,000,000 Cost to Find New Site for Landfill N/A Cost to Find New Site for Landfill N/A Cost to Find New Site for Landfill N/A

$2,950,000 $1,580,000 $1,350,000 $1,600,000

$0 $0 $0 $0

Operational Costs - Annual $179,950 Operational Costs - Annual $241,900 Operational Costs - Annual $228,400 Operational Costs - Annual First 4 Years $228,400

Operational Costs - Annual Years After $241,900

RISK: LOW - Run out of space in 2050 RISK: MED - Run out of space in 2039 RISK: LOW-MED - Run out of space in 2046

Negative -Year 1 2019 Capital Outlay $460k Positive -Year 1 2019 Capital Outlay $250k Positive -Year 1 2019 Capital Outlay $250k

Negative -Time to Roll Out the Program - too soon Positive -Program easier to roll out Positve -Additional time gained to Roll Out the Program of Opt 2

RISK: HIGH - Run out of space in 2029 - Look for new

landfill sites

Page 16

BUDGET 2019 - Capital Budget % Split

Capital Cost - 000's Budget 2019 20 Year

Program

2019 Base

%

Full 20 Years

Program %

ROADS, resheeting, resealing, reconstruction, construction 574 23,610 45% 69%

PLANT 72 5,992 6% 17%

BUILDINGS & FACILITIES 352 937 28% 3%

WASTE 250 1,600 20% 5%

IT COMPUTERS, TELEPHONES AND FURN & FITTINGS 22 296 2% 1%

SAFE HARBOUR 0 470 0% 1%

GENERAL COMMUNITY INFRASTRUCTURE 0 1,000 0% 3%

WHITEMARK FORESHORE AND STREETSCAPE REDEVELOPMENT 0 340 0% 1%

TOTAL 1,269 34,244 100% 100%

The Capital expenditure in 2019, has the largest expenditure on roads. Aside from the road program, it predominantly leans towards Building works, due to carry over

programs from 2018 that have been committed to. The waste program in 2019 is also significant as there is a requirement to purchase new plant for the waste

program.

The 20-year program indicates a different outlook, showing a larger swing towards the Road program, a large reduction in the Building program, and a greater

investment in the replacement of Plant and machinery.

45%

5%

28%

20%2%0%0%0%

Budget 2019 ROADS, resheeting, resealing,reconstruction, construction

PLANT

BUILDINGS & FACILITIES

WASTE

IT COMPUTERS, TELEPHONES AND FURN &FITTINGS

SAFE HARBOUR

GENERAL COMMUNITY INFRASTRUCTURE

WHITEMARK FORESHORE ANDSTREETSCAPE REDEVELOPMENT

69%

17%

5%

20 Year ProgramROADS, resheeting, resealing,reconstruction, construction

PLANT

BUILDINGS & FACILITIES

WASTE

IT COMPUTERS, TELEPHONES ANDFURN & FITTINGS

SAFE HARBOUR

GENERAL COMMUNITYINFRASTRUCTURE

WHITEMARK FORESHORE ANDSTREETSCAPE REDEVELOPMENT

Page 17

BUDGET 2019 - Finance Cash Management

CASHFLOW FORECAST Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Total

Budget

2019

Operating Income Note 1 101 4,066 166 2,553 381 880 141 1,288 171 141 410 2,218 12,517

Operating Expenses Note 1 -1,812 -1,777 -381 -2,370 -351 -1,096 -367 -337 -759 -368 -2,159 -760 -12,536

Net GST -(Cash negative)/ Cash positive 185 3 146 -201 209 -75 66 7 -50 43 -183 144 295

Net Adjustments To Future Costs: Income/( Expenses) 0 0 0 0 0 0 0 0 0 0 0 0

Net Operating Cash Income -1,526 2,292 -69 -19 239 -290 -160 958 -638 -184 -1,931 1,602 275

Loan Repayments 0 0 0 0 -19 0 0 0 0 0 -20 -170 -209

New Loans taken out and repaid

Loans- Cash Principle Repayments 0 0 0 0 -19 0 0 0 0 0 -20 -170 -209

CAPITAL: 0

Full Capital Program ( Cash for External Mats & Svcs) -82 -82 -82 -82 -82 -82 -82 -82 -82 -82 -82 -82 -984

Capital Cash Payments -82 -82 -82 -82 -82 -82 -82 -82 -82 -82 -82 -82 -984

IMPACT ON CASH RESERVES Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Total

Balance BF ( incl BT Investments) 5,443 3,835 6,046 5,895 5,794 5,932 5,560 5,318 6,194 5,474 5,209 3,176 5,443

Net Operating Cash Income -1,526 2,292 -69 -19 239 -290 -160 958 -638 -184 -1,931 1,602 275

Capital Cash Payments -82 -82 -82 -82 -82 -82 -82 -82 -82 -82 -82 -82 -984

Loans- Cash Principle Repayments 0 0 0 0 -19 0 0 0 0 0 -20 -170 -209

Balance CF - Operating Cash Reserves Note 2 3,835 6,046 5,895 5,794 5,932 5,560 5,318 6,194 5,474 5,209 3,176 4,526 4,526

-917

Note 1: Large fluctuations in Fund Income or expenditure is due to the Telstra project. Depletion

Note 2: The main depletion of funds predicted is due to the Telstra project.

Page 18

BUDGET 2019 - Finance Cash Management 20 Year Outlook

CASHFLOW FORECAST 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039

Operating Income 12,517 4,805 4,899 4,994 5,088 5,182 5,276 5,370 5,465 5,559 5,653 5,747 5,841 5,936 6,030 6,124 6,218 6,313 6,407 6,501 6,595

Operating Expenses -12,536 -4,474 -4,561 -4,649 -4,737 -4,825 -4,912 -5,000 -5,088 -5,175 -5,263 -5,351 -5,439 -5,526 -5,614 -5,702 -5,790 -5,877 -5,965 -6,053 -6,140

Net GST -(Cash negative)/ Cash positive 295 50 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70

Net Adjustments To Future Costs: Income/( Expenses) 0 151 153 153 197 48 70 71 39 39 -16 20 25 39 31 16 40 34 44 45 -4

Rate Income from Increases 0 180 318 412 507 605 704 804 907 1,011 1,117 1,225 1,335 1,446 1,559 1,674 1,791 1,910 2,030 2,152 2,276

Airport Passenger Tax - Increase 0 20 41 62 84 106 128 151 174 198 222 246 271 296 322 348 374 401 428 456 484

Other Increases from Various Initiatives 0 20 21 21 22 22 22 23 23 24 24 24 25 25 26 26 26 27 27 28 28

Net Operating Cash Income 275 753 923 1,046 1,215 1,193 1,344 1,477 1,578 1,714 1,797 1,973 2,120 2,279 2,418 2,551 2,726 2,873 3,039 3,197 3,308

Loan Repayments -209 -275 -42 -1,085 -45 -47 -49 -305 0 0 0 0 0 0 0 0 0 0 0 0 0

Loans- Cash Principle Repayments -209 -275 -42 -1,085 -45 -47 -49 -305 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

CAPITAL: 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Full Capital Program ( Cash for External Mats & Svcs) -984 -785 -420 -2,568 -957 -1,266 -639 -1,149 -1,317 -731 -2,033 -1,797 -1,585 -1,808 -2,886 -1,513 -1,729 -1,812 -1,744 -1,382 -2,322

Capital Cash Payments -984 -785 -420 -2,568 -957 -1,266 -639 -1,149 -1,317 -731 -2,033 -1,797 -1,585 -1,808 -2,886 -1,513 -1,729 -1,812 -1,744 -1,382 -2,322

IMPACT ON CASH RESERVES 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039

Balance BF ( incl BT Investments) 5,443 4,526 4,219 4,681 2,073 2,286 2,166 2,821 2,845 3,105 4,088 3,852 4,028 4,563 5,034 4,566 5,604 6,601 7,662 8,957 10,772

Net Operating Cash Income 275 753 923 1,046 1,215 1,193 1,344 1,477 1,578 1,714 1,797 1,973 2,120 2,279 2,418 2,551 2,726 2,873 3,039 3,197 3,308

Capital Cash Payments -984 -785 -420 -2,568 -957 -1,266 -639 -1,149 -1,317 -731 -2,033 -1,797 -1,585 -1,808 -2,886 -1,513 -1,729 -1,812 -1,744 -1,382 -2,322

Loans- Cash Principle Repayments -209 -275 -42 -1,085 -45 -47 -49 -305 0 0 0 0 0 0 0 0 0 0 0 0 0

Balance CF - Operating Cash Reserves 4,526 4,219 4,681 2,073 2,286 2,166 2,821 2,845 3,105 4,088 3,852 4,028 4,563 5,034 4,566 5,604 6,601 7,662 8,957 10,772 11,758

Loan Balances -1,848 -1,573 -1,531 -445 -400 -353 -305 0 0 0 0 0 0 0 0 0 0 0 0 0 0

NET LIQUIDITY - Revised Minimum Base level is $1.7 million 2,678 2,646 3,150 1,627 1,885 1,812 2,517 2,845 3,105 4,088 3,852 4,028 4,563 5,034 4,566 5,604 6,601 7,662 8,957 10,772 11,758

Target Liquidity to restore reserve level to Yr 2015 7,925 8,072 8,219 8,366 8,512 8,659 8,806 8,953 9,099 9,246 9,393 9,540 9,686 9,833 9,980 10,127 10,273 10,420 10,567 10,714 10,860

Net Liquidity (Decrease)/ Increase -5,247 -5,426 -5,069 -6,738 -6,627 -6,847 -6,289 -6,108 -5,994 -5,158 -5,541 -5,512 -5,123 -4,799 -5,414 -4,523 -3,673 -2,758 -1,610 58 898

Page 19

BUDGET 2019 - Cashflow Impact on Investments and Loan's Summary

Summary of Cash holdings,Investments and Loans at 30 Jun 18

*Values are estimates and may alter as Year end is incomplete

Summary Balances at 30 Jun 18 Investments Cash Accounts Total

Investments and

Cash Holdings

Loans Total Investments

and Cash Holdings

less Loans Owing

Loan Dates Due

for Repayment

Tascorp Investments 523 523 523

Bank Investments 754 754 754

Gunn Bequest 108 108 108

BT Investment Portfolio 1,028 1,028 1,028

Cash accounts 3,190 3,190 3,190

Loan1 - Putrecible cells & leachate mgt, Whitemark landfill 0 (170) (170) 1/06/2019

Loan2 -BBQ and Public toilets North East River & CBI 0 (155) (155) 1/06/2020

Loan3 -Whitemark Township Entrance 0 (80) (80) 1/06/2020

Loan4 -Stabilisation of Council Gravel Roads 0 (567) (567) 1/06/2022

Loan5 -Bridge Railings Project 0 (350) (350) 1/06/2022

Loan6 -Township Footpath Program 0 (125) (125) 1/06/2022

Loan7 -Tasmanian Public Finance Corporation $700,000.00 0 (609) (609) Ongoing, Final

Baloon $310k due

Nov 2030

Total 2,413 3,190 5,603 (2,056) 3,546

Budget 2019 - 20 Year Outlook Financial Assumptions

Inflation - 2% per annum

Rate Increases - 2019 Budget 9%, 2020 Forecast 10%, 2021 Forecast 7.5% and Years beyond 5% increases

Airport Passenger Fees -Budget 2019 has a $3 increase, 2020 onwards has a $1 increase each year from 2020 cumulatively

Other Program user fees - $20k per annum each year from 2019 onwards ( non cumulative as no additional increased factored).

Expense Adjustments (reductions or increases) have been factored for the ougoing program to account for potential savings

No additional Loans have been forecasted.

Projected 20 Year Cashflow Outlook

Notes:

The Impact of the assumptions on the Liquidity of the Council funds, indicate that the years between 2022 and 2024 will hover on

the base minimum reserve of $1.7 million. This is due to the cost of the Airport Runway ($1.8million). The decline of funds since 2015

has impacted the future liquidity, and it will take 19 years to restore the levels of Investments held at 2015.

The Minimum Reserve of $2m has been revised to$1.7 million as the Budget 19 depreciation has been reduced by $300k to align

with the finalised year end 2018 depreciation. The reduction of depreciation therefore sets a new reference point for the break-even

level.

Page 20