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Central Tablelands Water Draft Long Term Financial Plan Page 1 Draft Long Term Financial Plan 2018/19- 2027/28

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Page 1: Draft Long Term Financial Plan 2018/19- 2027/28 CTW - LTFP...Draft Long Term Financial Plan Page 8 The financial model has used an average assessment growth rate of 0.70% for the projection

Central Tablelands Water Draft Long Term Financial Plan Page 1

Draft

Long Term

Financial

Plan

2018/19-

2027/28

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Central Tablelands Water Draft Long Term Financial Plan Page 2

Central Tablelands Water

PO Box 61

BLAYNEY NSW 2799

(02) 6391 7200

www.ctw.nsw.gov.au

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Central Tablelands Water Draft Long Term Financial Plan Page 3

CONTENTS

INTRODUCTION ........................................................................................................... 5

Objectives ......................................................................................................................... 5

Timeframe ........................................................................................................................ 5

Structure ........................................................................................................................... 6

PLANNING ASSUMPTIONS ........................................................................................... 7

Figure 1 – Projection of Council’s Service Population .................................................. 7

Capital Works Program .................................................................................................... 9

Summary of Key Assumptions and Indices .................................................................... 10

REVENUE FORECASTS ................................................................................................ 10

Annual (Availability) Charges ......................................................................................... 11

Flow Capacity Table .................................................................................................... 11

User Charges & Fees....................................................................................................... 11

Grants & Contributions .................................................................................................. 12

Investment Revenue ...................................................................................................... 12

Borrowings ..................................................................................................................... 12

Other Revenue ............................................................................................................... 12

EXPENDITURE FORECASTS ......................................................................................... 13

Salaries, Wages and Employee On-costs ....................................................................... 13

Materials, Contracts and Other Operating Costs ........................................................... 13

Asset Management ........................................................................................................ 14

SENSITIVITY ANALYSIS AND FINANCIAL MODELLING ................................................. 14

Scenario 1 – Base Scenario ............................................................................................. 15

Scenario 2 – Wet Years 19/20 and 20/21 ...................................................................... 15

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Scenario 3 – Increasing User Charges by 10% in 2018/19 ............................................. 16

PERFORMANCE MEASURES – BASE CASE ................................................................... 18

Financial Analysis ............................................................................................................ 18

Debt Management ......................................................................................................... 19

Debt Service Ratio ....................................................................................................... 19

APPENDICES .............................................................................................................. 22

Appendix A: Central Tablelands Water – 10 Year Financial Plans for each Scenario .... 22

Appendix B: Central Tablelands Water – 10 Year Capital Program ............................. 22

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INTRODUCTION

Objectives

The Long Term Financial Plan (LTFP) is a requirement under the Integrated Planning and Reporting

framework for NSW Local Government. Council’s long term financial plan provides a framework

to assess its revenue building capacity to meet the activities and level of services outlined in its

Strategic Business Plan.

Central Tablelands Water’s LTFP aims to:

establish greater transparency and accountability of Council to the community;

provide an opportunity for early identification of financial issues and any likely impacts in

the longer term;

provide a mechanism to:

o recognise financial sustainability issues

o assess how various plans fit together

o understand the impact of various decisions on plans or strategies;

provide a means of measuring Council’s success in implementing strategies; and,

ensure that Council can remain financially sustainable in the longer term.

Timeframe

The Department of Local Government has set the minimum timeframe at ten years for an LTFP.

The Central Tablelands Water LTFP covers the time period from 2018/2019 to 2027/2028.

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Structure

The LTFP is structured into seven main sections.

Section 1: Provides a brief introduction to the plan and the objectives it aims to meet.

Section 2: Planning Assumptions. This section details the financial assumptions made in

developing the LTFP.

Section 3: Revenue Forecasts. This section details the Council’s major sources of revenue and

the assumptions used in the forecast figures.

Section 4: Expenditure Forecasts. This section details the Council’s major areas of expenditure

and the assumptions used in the forecast figures including asset management.

Section 5: Sensitivity Analysis and Financial Modelling. This section details the impact of

various scenarios on Councils plans and looks at other variables affecting the LTFP.

Section 6: Performance Monitoring. This section provides a number of key performance

indicators to monitor Council’s performance against the plan.

Section 7: Appendices. (Detailed budget forecasts)

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PLANNING ASSUMPTIONS

A long term financial plan is dependent on a number of planning assumptions. In preparing a LTFP,

Council considered a range of matters and made the most appropriate assumptions. These

assumptions were used to model and formulate the plan, test some scenarios which have

ultimately formed the basis of the agreed plan.

Some of the key variables reviewed as part of the setup of the LTFP include:

Consumer Price Index (CPI): See Table 2.

Salaries and Employee Costs: See Table 2.

Investment Income: See Table 2.

Fees and Charges: See Table 2.

Service Levels: Refer to Central Tablelands Water Strategic Business Plan (SBP).

Growth Projections.

Growth projections in services of Central Tablelands Water, to a large extent, will be dependent

on the growth of constituent Councils of Blayney, Cabonne and Weddin Shire Councils. The

historical population of constituent Shire Councils are provided in Table 1.

Central Tablelands Water prepared its predictions believing that the economic development

strategies in place in the constituent Shire Councils should result in maintaining the present

population over the next thirty years with a likely estimated percentage increase (see Figure

below).

Figure 1 – Projection of Council’s Service Population

14

400

14

501

146

02

147

05

148

07

149

11

15

015

12600

13100

13600

14100

14600

15100

15600

16100

16600

17100

2017 2021 2025 2029 2033 2037 2041

PO

PU

LATI

ON

YEAR

Council's Projection of Service Population(Growth Rate 0.70% p.a)

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The financial model has used an average assessment growth rate of 0.70% for the projection

period. The projected number of assessments for financial modelling purposes is based on 5,865

assessments as at April 2018, and factored up in line with the adopted growth rate.

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Capital Works Program

The following is a summary of the major capital works planned for Central Tablelands Water over

the next 10 years. The Central Tablelands Water and Orange City Council Pipeline is expected to

be fully commissioned by the end of 2017/18.

The justification for why they have been planned is also shown below.

Proposed Project Year Reason

Stage 3 of Trunk Main K – Gooloogong to Grenfell – Final 14 Kms

2018/19 Growth related and renewal

Trunk Main P – Trunk Main P to Somers (2kms)

2018/19 Renewal

Reticulation Mains renewal and dead ends removal

Annual Program

2021 onwards

Renewal and Water Quality

Lake Rowlands Remediation 2020/21 Flood Upgrade

1/100,000yr Event

Carcoar WFP Reservoir – 12 ML - Council Funding – 50%

2020/22 Water Security Emergency

Renewal & Upgrade of Trunk Main U – from Trunk main C to Cudal (33 Km)

2023/26 Renewal and Growth related

Refurbishment of Gooloogong Bore 2021/22 Renewal

Major refurbishment of Electrical and Mechanical equipment in Carcoar water filtration plant

2022/24 Renewal

Administration Office Refurbishment 2018/19 Renewal

Renewal & Upgrade of part Trunk Main A (300m) – from Lake Rowlands to Carcoar Mandurama to Trunk Main U (40 Km)

2018/19 Renewal – 100% Grant

Renewal & Upgrade of Trunk Main ‘B’ – from CWFP to Mandurama (6.5 Km)

2023/25 Renewal and Growth related

Renewal & Upgrade of Trunk Main C – from Trunk Main U to Gooloogong (40 Km)

2025/28 Renewal and Growth related

A financial summary of the proposed capital works is included with the base scenario in Appendix

B.

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Summary of Key Assumptions and Indices

Assumption/Variable Calculation Basis Planned %

Consumer Price Index (CPI) Local Government Cost Index plus

0.7% for local cost factors. 3.0%

Salaries and Employee On-

costs

Estimate (2.5% Award increase +

0.5% Salary Review ) 3.0%

Interest Rate Income Existing Cash Rate of 1.5%+ 1.1%

Margin based on investment profile 2.6%

Water Sales (User Charges

Income)

2017/2018 Operational Plan 6%

yearly increase 6.0%

Availability Charge (Annual

Charges)

Residential, Rural & Commercial new

annual connections. (2% annually) 2.0%

Fees and Charges Income Local Government Cost Index of 2.3%

plus 0.7% for local cost factors. 3.0%

REVENUE FORECASTS

The County Council model has proven to be a very effective institutional arrangement for the

provision of water supply as the governance arrangement of the Council, comprising elected

representatives from each of the constituent councils, maintaining a close relationship between

the community expectations and the policy decisions of the Council.

The major sources of revenue for Council are:

1. Annual (Availability) Charges

2. User Charges and Fees

3. Grants & Contributions

4. Investment Revenue

5. Borrowings

6. Other Revenues

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Annual (Availability) Charges

Annual or Availability Charges are one of the main streams of income for Council. The availability

charge is calculated in accordance with the Best Practice Water guidelines by multiplying the

charge for a standard 20mm connection by the flow capacity factor (FCF) listed in the Flow

Capacity Table below.

In accordance with Best Practice Water guidelines, the FCF recognises that the greater the meter

size the larger draw on the network that can be made from that connection.

Flow Capacity Table

Diameter

of Water

Service

20mm 25mm 32mm 40mm 50mm 80mm 100mm

Flow

Capacity

Factor

1.00 1.5625 2.56 4.00 6.25 16.00 25.00

User Charges & Fees

In accordance with Sections 491, 501 and 502 of the Local Government Act 1993, Council is able

to charge for the provision of water supply services.

Council has a dedicated focus on consumer service expectations and, through its pricing policy,

consumers are receiving a water supply of high quality and reliability and this is wholly

attributable to the pricing policy being able to fund an ongoing program of infrastructure renewal

and upgrade.

Council has embraced Best Practice Pricing of Local Water Utility services as outlined in the NSW

DPI Water Best Practice Management of Water Supply and Sewerage Guidelines. In summary,

the following pricing regime exists for Central Tablelands Water:

1. A two part pricing policy of an availability (access) charge, determined on the diameter of

the meter, and a consumption charge;

2. There are no non-residential cross subsidies: and

3. Water accounts are rendered quarterly so consumers have up to date water usage.

Statutory Charges

Council has no discretion to determine the amount of a fee for service when the amount is fixed

by regulation or by another authority. An example of a statutory fee includes Section 603

Certificates.

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The majority of statutory charges do not increase annually in line with CPI, however for the

purposes of financial modelling these fees are assumed to increase in line with CPI over the long

term.

Other Fees and Charges

Other fees include office fees (photocopying, binding etc.), fees for use of Council facilities.

Grants & Contributions

The only recurrent contribution received by Council is the funding of 55% of the pensioner rebate

granted by Council to eligible pensioners. This rebate is at the rate of $87.50 per eligible property.

The level rebate has not been changed for over 20 years and only changed with the number of

eligible pensioners. Council funds 45% of the rebate granted. In the LTFP the contribution received

by Council has been assumed to increase by 3%.

Council’s Development Servicing Plan (DSP) requires that contributions be indexed with changes

in the CPI. Whilst it is difficult to estimate the level of Development contributions, historical

factors are considered and annual increase of 3% has been applied.

Investment Revenue

Council’s investment strategy is to undertake investment of surplus funds, maximising earnings

from authorised investments, whilst ensuring the security of Council funds.

Council also aims to ensure there is sufficient liquidity to meet all reasonably anticipated cash

flow requirements, as and when they fall due, without incurring significant costs due to the

unanticipated sale of an investment.

Forecast returns on Council’s investment portfolio are based on the current cash rate plus and a

margin based upon the expected level of funds available for investment. Council believes that a

conservative approach to this estimate is considered prudent.

Borrowings

Council’s current 20 year loan to fund Capital Works and Quandialla Water Supply will be repaid

in full by financial year 2021/2022. Council is proposing to raise another loan in financial year

2021/2022 to fund the future Capital Works program. This additional loan is based upon a fixed

rate over 20 years at an estimated interest rate of 6.0%. This loan has been factored into each

LTFP scenario.

Other Revenue

The significant majority of other revenues are generated by rental income on Council properties,

insurance claim recoveries, insurance discounts and employee contributions to motor vehicles.

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Rentals will vary according to supply and demand, however forecast fluctuations in supply and

demand over a ten year period, if available, are not considered reliable. Therefore assuming rents

will increase in line with CPI over the long term is considered an acceptable approach. This

approach has also been applied to insurance claim recoveries, insurance discounts and employee

contributions to motor vehicles.

Given that ‘other revenues’ represents less than 3% of total revenues, the potential margin of

error of this assumption, and resultant impact on financial position, is considered immaterial.

EXPENDITURE FORECASTS

Salaries, Wages and Employee On-costs

Council’s long term forecast relating to staffing is contained in detail within the Workforce

Strategy. The Workforce Strategy also identifies the human resources Central Tablelands Water

requires to continue its strategic direction and deliver services in an efficient and effective

manner.

For the purpose of projecting future salary, wage and ELE costs to Council a percentage increase

of 3% has been applied (see Planning Assumptions). This is to account for future Award increases

and staff competency/performance increases.

Employee on-costs are assigned to labour hours to recover fixed operational employment

overhead costs. Further, the attribution of other organisational support costs, such as

administration and supervision, are recovered by applying an on-cost percentage to materials &

contracts relating to all operational works.

The operational plan for 2018/2019 and the LTFP includes the additional costs for CTW to employ

a part time Officer to support the Finance and Executive functions. This additional part time

position (15hrs per week or 0.43 FTE) assist council in completing routine finance and executive

functions including reconciliations of subsidiary ledgers, updating financial asset registers ,

updating plant records, oncost processing ,general ledger maintenance , monthly reporting

,website and system maintenance. With this additional position Council’s funded FTE is 20.93 in

2018/19.

Materials, Contracts and Other Operating Costs

Expenditure on materials, contracts and other operating cost has been generally based on CPI.

Electricity prices at Council major usage sites (usage exceeds 100MW hours per annum), increased

in price by 94% from 1 January, 2018 following a procurement process undertake by a group of

Councils with the Central Western Regional Organisation of Councils. This change is estimated to

add $200,000 to Councils annual electricity bill in 2018/19. Council has also undertaken an Energy

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Central Tablelands Water Draft Long Term Financial Plan Page 14

Audit in 2017/18 which is likely to recommend options that can be considered by Council to

improve its energy efficiency.

Allowance has been made in 2018/19 for consultancies relating to the review of plans required

for compliance with the Best Practice guidelines totalling $40,000. An additional $30,000 has been

provided in 2018/19 for a review of Council’s organisation structure together with the existing

salary system.

Insurance Costs are estimated to grow by 4% in 2018/19 and 3% in succeeding years.

Asset Management

Infrastructure (assets) expenditure will progressively be mapped against maintenance and

renewal programs recommended by respective Asset Management Plans. In accordance with

Council’s asset management review, asset maintenance expenditure has been increased by CPI

after allowance for renewed or new assets.

Subject to sustainable funding, assets will be maintained and renewed in accordance with the

asset management plans for each asset class. The optimal intervention point for renewal will be

as recommended by those plans.

Council is currently in the process of developing an Asset Management System. This along with

an Asset Officer now being engaged by Council will help with both the gathering of asset data and

the review of future asset management plans.

SENSITIVITY ANALYSIS AND FINANCIAL MODELLING

The LTFP is based on a number of underlying assumptions. Sensitivity analysis identifies the

impact on Council’s financial position of changes in these assumptions and highlights the factors

most likely to affect the outcomes of the plan.

The sensitivity analysis undertaken is based on the following scenarios:

Scenario 1 – Base Scenario – 6% Increase User Charges in 2018/19

Scenario 2 – Wet years for 2018/2019 and 2019/2020 with reduced income from water

sales

Scenario 3 – 10% increase in user charges in 2018/19 to part recover the additional

electricity costs.

The sensitivity analysis aims to maintain similar amounts of cash and investments at the end of

the financial planning period.

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Scenario 1 – Base Scenario

The base case includes the proposed income and expenditure for 2018/2019, with assumed

planning assumptions as outlined in the long term financial plan. The net operating result before

capital grants and contributions under the base scenario is graphically represented below.

As is illustrated above Council’s Net Operating Result before Capital amounts remains positive

over the life of the LTFP. It is noted that the 2018/19 result is lower than is currently projected

for 2017/18 due principally to large increase in electricity charges and higher depreciation

resulting from the significant renewal of infrastructure in 2017/18 due to the trunk main K and

Carcoar to Orange pipeline projects.

Due to the substantial financial commitment by Council towards its capital works program for the

over the life of the long term financial plan, it is critical that there is sufficient operating cash flow.

That required funding is the reason for the projected increases of 2% in availability charges per

annum and 6% annual increase in the user charges.

Substantial increases in electricity prices have occurred in and have been incorporated into the

2018/19 base case budget. Council is absorbing some of this additional electricity cost in 2018/19

but may need to increase user charges beyond 6% in future years if these additional costs are to

be recovered or offset by energy usage mitigation measures. Council is currently undertaking an

Energy Audit to evaluate options as to how it can reduce its energy usage and carbon emissions.

Scenario 2 – Wet Years 19/20 and 20/21

This scenario assumes that water sales in years 19/20 and 20/21 are reduced due to wet

seasonal conditions. Council’s revenue is reduced in those years with some variable costs also

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Net Operating Result (per P&L) before Capital Grants and Contributions - General Fund

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Central Tablelands Water Draft Long Term Financial Plan Page 16

reducing due to reduced water production. Council however still needs to be able to cover its

fixed costs including depreciation. This leads to a lower operating results and depending upon

the number and extent of wet years may necessitate a deferral of some capital programs. In this

scenario there has been no deferral of the capital programs modelled at this time.

A graph of the revised estimated operating result using this scenario is shown below.

As is illustrated above the Operating Result before Capital Amounts is adversely affected in the

2019/20 and 2020/21 years due to the loss of revenue caused by reduced water sales. The

Operating Result before Capital Amounts is anticipated to recover when normal seasonal

conditions and consumption patterns return.

Scenario 3 – Increasing User Charges by 10% in 2018/19

Council’s electricity costs have increased substantially since 1 January, 2018 following a new

contract being negotiated via a quotation process undertaken in conjunction with other Councils

in the CENTROC group. Some bulk electricity charges at major sites (pumping stations and

filtration plants) have increased by up to 94%.

This scenario looks at increasing fees in 2018/19 by 10% rather the 6% as outlined in the base

case. This would allow Council to recover a significant portion of the electricity increase and

continue to fund it substantial capital program.

The graph of the revised estimated operating result with this scenario is shown below.

(200,000)

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Net Operating Result (per P&L) before Capital Grants and Contributions - General Fund

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This scenario involves increasing the 2018/19 usage rate by 10% from $2.75 to $3.03 per kl. This

improves the operational result and provides more funding for the capital program. Council was

aware of the impact of that this additional increase upon consumers and decided to proceed with

the 6% increase in the usage rate as per the base case. Council will closely monitor the impact of

increased electricity charges upon its operations. Further changes in the usage charge will be

considered in the 2019/20 revenue policy to take into account the changes in all costs including

the electricity charge.

The Income Statement, Balance Sheet and Statement of Cash Flows are presented for the

three scenarios in Appendix A.

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Net Operating Result (per P&L) before Capital Grants and Contributions - General Fund

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PERFORMANCE MEASURES – BASE CASE

Financial Analysis

A number of key indicators have been developed to monitor performance against the base case

LTFP to assess Council’s long term sustainability. These key performance indicators will provide

clear targets against which the council can report its progress to the community.

Operating Result

Definition:

Result or surplus/deficit from operations after considering all income and expenditure.

Description:

Councils operating result is normally regarded as an important criterion in measuring

performance. The issue for Council is whether the operating results can be maintained and in

particular if those operating results can sustain the current level of services into the future.

Target:

To achieve an operating surplus throughout the LTFP.

Projection:

That Council will achieve an operating surplus throughout the LTFP.

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Net Operating Result (per P&L) before Capital Grants and Contributions - General Fund

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Central Tablelands Water Draft Long Term Financial Plan Page 19

Debt Management

Prudent financial management requires that a council does not commit itself to borrowing

levels that it cannot service from its revenue base. It is important to assess the ongoing risk that

is associated with meeting any debt and interest commitments to ensure there are sufficient

funds available to meet any current and future liabilities of Council.

Debt Service Ratio

Definition:

Net Debt Service Cost

Total Revenue from Ordinary Activities excluding Capital Amounts

Description:

The Debt Service Ratio is used to show the percentage of annual revenue necessary to service

annual debt obligations e.g. loan repayments. It also shows the commitment of future revenue

necessary to fund long term obligations. Whilst there is no definitive guide on what constitutes

an acceptable ratio it is generally accepted that a ratio up to 20% depending on the level of long-

term development (infrastructure) plans, is considered tolerable. This of course depends on the

level of other liabilities of Council including employee leave liabilities.

Target:

Council aims to maintain this ratio below 15%.

Projection:

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Central Tablelands Water Draft Long Term Financial Plan Page 20

That Council will maintain the ratio below 15% of the LTFP after allowing for a new loan of $10M

to be raised in late 2021/22 after the existing 20 year loan facility is fully paid down. This funding

will allow a continuation of Councils capital program.

0.000%

2.000%

4.000%

6.000%

8.000%

10.000%

12.000%

14.000%

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Debt Service Ratio - General Fund

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Central Tablelands Water Draft Long Term Financial Plan Page 22

APPENDICES

Appendix A: Central Tablelands Water – 10 Year Financial Plans for each Scenario

Appendix B: Central Tablelands Water – 10 Year Capital Program

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Appendix A – 10 Year Financial Plans for each Scenario

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Central Tablelands Water

10 Year Financial Plan for the Years ending 30 June 2028

INCOME STATEMENT - GENERAL FUND Actuals Current Year

Scenario: Base Case - 2018/19 Budget Adopted 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28

$ $ $ $ $ $ $ $ $ $ $ $

Income from Continuing Operations

Revenue:

Rates & Annual Charges 1,225,000 1,436,140 1,473,921 1,504,431 1,535,573 1,567,359 1,599,804 1,632,920 1,666,721 1,701,222 1,736,438 1,772,382

User Charges & Fees 3,985,000 4,310,161 4,696,852 4,975,290 5,270,333 5,582,973 5,914,265 6,265,324 6,637,333 7,031,544 7,449,288 7,891,972

Interest & Investment Revenue 210,000 128,000 105,000 108,443 112,010 115,709 119,543 123,520 127,646 131,926 136,369 140,982

Other Revenues 247,000 185,623 63,349 65,249 67,207 69,223 71,300 73,439 75,642 77,911 80,249 82,656

Grants & Contributions provided for Operating Purposes 55,000 52,071 52,071 53,633 55,242 56,899 58,606 60,365 62,175 64,041 65,962 67,941

Grants & Contributions provided for Capital Purposes 177,000 141,580 650,510 97,345 100,266 103,274 106,372 109,563 112,850 116,235 119,722 123,314

Other Income:

Net gains from the disposal of assets 85,000 81,000 57,000 57,000 57,000 57,000 57,000 57,000 57,000 57,000 57,000 57,000

Joint Ventures & Associated Entities - - - - - - - - - - - -

Total Income from Continuing Operations 5,984,000 6,334,575 7,098,704 6,861,392 7,197,631 7,552,438 7,926,890 8,322,130 8,739,367 9,179,881 9,645,028 10,136,247

Expenses from Continuing Operations

Employee Benefits & On-Costs 1,768,000 2,007,279 2,136,692 2,200,793 2,266,816 2,334,821 2,404,866 2,477,012 2,551,322 2,627,862 2,706,698 2,787,898

Borrowing Costs 172,000 143,932 114,437 83,170 49,352 312,630 585,951 569,015 551,041 531,963 511,715 490,225

Materials & Contracts 927,000 1,021,911 1,101,780 1,042,133 1,073,397 1,105,599 1,138,767 1,172,930 1,208,118 1,244,361 1,281,692 1,320,143

Depreciation & Amortisation 1,807,000 2,130,950 2,005,572 2,085,573 2,189,637 2,250,335 2,341,201 2,435,703 2,533,988 2,636,206 2,742,516 2,862,735

Impairment - - - - - - - - - - - -

Other Expenses 771,000 781,196 1,000,300 1,030,309 1,061,218 1,093,055 1,125,847 1,159,622 1,194,411 1,230,243 1,267,150 1,305,165

Interest & Investment Losses - - - - - - - - - - - -

Net Losses from the Disposal of Assets - - - - - - - - - - - -

Joint Ventures & Associated Entities - - - - - - - - - - - -

Total Expenses from Continuing Operations 5,445,000 6,085,268 6,358,781 6,441,978 6,640,421 7,096,440 7,596,631 7,814,282 8,038,879 8,270,636 8,509,772 8,766,166

Operating Result from Continuing Operations 539,000 249,307 739,922 419,414 557,210 455,997 330,260 507,849 700,488 909,245 1,135,257 1,370,080

Discontinued Operations - Profit/(Loss) - - - - - - - - - - - -

Net Profit/(Loss) from Discontinued Operations - - - - - - - - - - - -

Net Operating Result for the Year 539,000 249,307 739,922 419,414 557,210 455,997 330,260 507,849 700,488 909,245 1,135,257 1,370,080

Net Operating Result before Grants and Contributions provided for

Capital Purposes 362,000 107,727 89,412 322,068 456,944 352,724 223,888 398,286 587,638 793,010 1,015,534 1,246,766

Projected Years

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Central Tablelands Water

10 Year Financial Plan for the Years ending 30 June 2028

CASH FLOW STATEMENT - GENERAL FUND Actuals Current Year

Scenario: Base Case - 2018/19 Budget Adopted 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28

$ $ $ $ $ $ $ $ $ $ $ $

Cash Flows from Operating ActivitiesReceipts:

Rates & Annual Charges 1,225,000 1,436,140 1,473,921 1,504,431 1,535,573 1,567,359 1,599,804 1,632,920 1,666,721 1,701,222 1,736,438 1,772,382

User Charges & Fees 3,990,000 4,309,429 4,676,331 4,960,514 5,254,675 5,566,382 5,896,684 6,246,694 6,617,591 7,010,624 7,427,119 7,868,479

Interest & Investment Revenue Received 215,000 144,017 119,480 101,584 115,375 58,964 120,176 128,058 139,744 135,534 175,573 158,642

Grants & Contributions 182,000 194,265 596,444 266,015 154,563 159,200 163,976 168,895 173,962 179,181 184,557 190,093

Bonds & Deposits Received - - - - - - - - - - - -

Other 600,000 192,593 71,568 70,259 72,516 74,849 77,262 79,758 82,339 85,008 87,770 90,627

Payments:

Employee Benefits & On-Costs (2,049,000) (2,016,307) (2,170,822) (2,187,232) (2,252,447) (2,319,593) (2,388,728) (2,459,910) (2,533,199) (2,608,655) (2,686,344) (2,766,328)

Materials & Contracts (825,000) (1,210,405) (1,107,898) (1,021,048) (1,079,773) (1,112,166) (1,145,531) (1,179,897) (1,215,294) (1,251,753) (1,289,305) (1,327,984)

Borrowing Costs (172,000) (143,932) (114,437) (83,170) (49,352) (312,630) (585,951) (569,015) (551,041) (531,963) (511,715) (490,225)

Bonds & Deposits Refunded - - - - - - - - - - - -

Other (1,021,000) (781,196) (1,000,300) (1,030,309) (1,061,218) (1,093,055) (1,125,847) (1,159,622) (1,194,411) (1,230,243) (1,267,150) (1,305,165)

Net Cash provided (or used in) Operating Activities 2,145,000 2,124,605 2,544,288 2,581,043 2,689,912 2,589,311 2,611,847 2,887,881 3,186,413 3,488,955 3,856,942 4,190,522

Cash Flows from Investing Activities

Receipts:

Sale of Investment Securities 800,000 1,831,425 2,284,591 - 205,083 - - 306,933 1,785,824 544,124 5,773,491 2,231,834

Sale of Investment Property - - - - - - - - - - - -

Sale of Real Estate Assets - - - - - - - - - - - -

Sale of Infrastructure, Property, Plant & Equipment 310,000 - - - - - - - - - - -

Sale of Interests in Joint Ventures & Associates - - - - - - - - - - - -

Sale of Intangible Assets - - - - - - - - - - - -

Deferred Debtors Receipts - - - - - - - - - - - -

Sale of Disposal Groups -

Distributions Received from Joint Ventures & Associates - - - - - - - - - - - -

Other Investing Activity Receipts -

Payments:

Purchase of Investment Securities - - - (818,101) - (7,945,204) - - - - - -

Purchase of Investment Property - - - - - - - - - - - -

Purchase of Infrastructure, Property, Plant & Equipment (2,539,000) (4,204,285) (4,362,660) (865,456) (2,753,690) (3,698,914) (2,373,316) (3,264,445) (4,661,344) (3,703,109) (9,280,215) (6,977,414)

Purchase of Real Estate Assets - - - - - - - - - - - -

Purchase of Intangible Assets - (80,000) - - (10,000) - - - - - - -

Deferred Debtors & Advances Made (15,000) - - - - - - - - - - -

Purchase of Interests in Joint Ventures & Associates - - - - - - - - - - - -

Contributions Paid to Joint Ventures & Associates - - - - - - - - - - - -

Other Investing Activity Payments -

Net Cash provided (or used in) Investing Activities (1,444,000) (2,452,860) (2,078,069) (1,683,556) (2,558,608) (11,644,118) (2,373,316) (2,957,512) (2,875,520) (3,158,986) (3,506,724) (4,745,579)

Cash Flows from Financing Activities

Receipts:

Proceeds from Borrowings & Advances - - - - - 10,000,000 - - - - - -

Proceeds from Finance Leases - - - - - - - - - - - -

Other Financing Activity Receipts -

Payments:

Repayment of Borrowings & Advances (409,000) (436,745) (466,219) (497,486) (531,304) (545,194) (275,982) (292,918) (310,892) (329,970) (350,218) (371,708)

Repayment of Finance Lease Liabilities - - - - - - - - - - - -

Distributions to Minority Interests - - - - - - - - - - - -

Other Financing Activity Payments -

Net Cash Flow provided (used in) Financing Activities (409,000) (436,745) (466,219) (497,486) (531,304) 9,454,806 (275,982) (292,918) (310,892) (329,970) (350,218) (371,708)

Net Increase/(Decrease) in Cash & Cash Equivalents 292,000 (765,000) 0 400,000 (400,000) 400,000 (37,451) (362,549) (0) (0) (0) (926,766)

plus: Cash, Cash Equivalents & Investments - beginning of year 873,000 1,165,000 400,000 400,000 800,000 400,000 800,000 762,549 400,000 400,000 400,000 400,000

Cash & Cash Equivalents - end of the year 1,165,000 400,000 400,000 800,000 400,000 800,000 762,549 400,000 400,000 400,000 400,000 (526,766)

Cash & Cash Equivalents - end of the year 1,165,000 400,000 400,000 800,000 400,000 800,000 762,549 400,000 400,000 400,000 400,000 (526,766)

Investments - end of the year 6,200,000 4,368,575 2,083,984 2,902,084 2,697,002 10,642,205 10,642,205 10,335,273 8,549,449 8,005,325 2,231,834 -

Cash, Cash Equivalents & Investments - end of the year 7,365,000 4,768,575 2,483,984 3,702,084 3,097,002 11,442,205 11,404,754 10,735,273 8,949,449 8,405,325 2,631,834 (526,766)

Representing:

- External Restrictions - - - - - - - - - - - -

- Internal Restricitons 6,865,000 4,475,686 2,765,823 3,957,490 3,274,204 11,804,895 11,642,580 10,448,426 7,858,016 6,312,653 (996,534) (5,741,000)

- Unrestricted 500,000 292,889 (281,840) (255,406) (177,203) (362,690) (237,826) 286,846 1,091,432 2,092,672 3,628,368 5,214,233

7,365,000 4,768,575 2,483,984 3,702,084 3,097,002 11,442,205 11,404,754 10,735,273 8,949,449 8,405,325 2,631,834 (526,766)

Projected Years

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Central Tablelands Water

10 Year Financial Plan for the Years ending 30 June 2028

BALANCE SHEET - GENERAL FUND Actuals Current Year

Scenario: Base Case - 2018/19 Budget Adopted 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28

$ $ $ $ $ $ $ $ $ $ $ $

ASSETS

Current Assets

Cash & Cash Equivalents 1,165,000 400,000 400,000 800,000 400,000 800,000 762,549 400,000 400,000 400,000 400,000 -

Investments 6,200,000 4,368,575 2,083,984 2,902,084 2,697,002 10,642,205 10,642,205 10,335,273 8,549,449 8,005,325 2,231,834 -

Receivables 351,000 308,424 417,282 324,065 337,496 412,008 430,172 445,521 454,464 473,121 457,475 464,745

Inventories 261,000 382,514 412,409 390,083 401,785 413,839 426,254 439,042 452,213 465,780 479,753 494,145

Other 23,000 29,673 34,593 34,106 35,129 36,183 37,268 38,386 39,538 40,724 41,946 43,204

Non-current assets classified as "held for sale" - - - - - - - - - - - -

Total Current Assets 8,000,000 5,489,186 3,348,268 4,450,337 3,871,411 12,304,235 12,298,448 11,658,221 9,895,664 9,384,949 3,611,008 1,002,094

Non-Current Assets

Investments - - - - - - - - - - - -

Receivables 3,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000

Inventories - - - - - - - - - - - -

Infrastructure, Property, Plant & Equipment 67,958,000 70,219,729 72,635,458 71,365,363 72,046,839 73,552,047 73,572,297 74,458,644 76,656,652 77,721,677 84,458,833 88,535,762

Investments Accounted for using the equity method - - - - - - - - - - - -

Investment Property - - - - - - - - - - - -

Intangible Assets - 77,184 77,184 77,406 87,855 115,208 142,803 170,648 198,750 227,117 255,757 275,024

Non-current assets classified as "held for sale" - - - - - - - - - - - -

Other - - - - - - - - - - - -

Total Non-Current Assets 67,961,000 70,311,913 72,727,642 71,457,769 72,149,693 73,682,255 73,730,100 74,644,291 76,870,402 77,963,793 84,729,590 88,825,786

TOTAL ASSETS 75,961,000 75,801,099 76,075,910 75,908,106 76,021,105 85,986,490 86,028,548 86,302,512 86,766,065 87,348,742 88,340,598 89,827,880

LIABILITIES

Current Liabilities

Bank Overdraft - - - - - - - - - - - 526,766

Payables 274,000 316,242 346,952 238,597 305,951 339,613 305,222 340,757 389,808 366,814 545,654 478,145

Income received in advance 91,000 83,294 88,193 93,387 98,890 104,720 110,896 117,440 124,373 131,719 139,502 147,748

Borrowings 437,000 466,219 497,486 531,304 413,245 275,982 292,918 310,892 329,970 350,218 371,708 394,518

Provisions 602,000 593,390 559,213 572,517 586,620 601,568 617,414 634,210 652,014 670,887 690,891 712,096

Liabilities associated with assets classified as "held for sale" - - - - - - - - - - - -

Total Current Liabilities 1,404,000 1,459,146 1,491,845 1,435,806 1,404,706 1,321,884 1,326,450 1,403,299 1,496,165 1,519,636 1,747,755 2,259,273

Non-Current Liabilities

Payables - - - - - - - - - - - -

Income received in advance - - - - - - - - - - - -

Borrowings 1,908,000 1,442,036 944,549 413,245 - 9,592,069 9,299,151 8,988,259 8,658,289 8,308,072 7,936,363 7,541,846

Provisions 4,000 5,610 5,287 5,413 5,546 5,687 5,837 5,996 6,164 6,343 6,532 6,732

Investments Accounted for using the equity method - - - - - - - - - - - -

Liabilities associated with assets classified as "held for sale" - - - - - - - - - - - -

Total Non-Current Liabilities 1,912,000 1,447,646 949,836 418,658 5,546 9,597,756 9,304,988 8,994,255 8,664,454 8,314,414 7,942,895 7,548,578

TOTAL LIABILITIES 3,316,000 2,906,792 2,441,681 1,854,463 1,410,252 10,919,640 10,631,438 10,397,554 10,160,619 9,834,051 9,690,650 9,807,851

Net Assets 72,645,000 72,894,307 73,634,229 74,053,643 74,610,853 75,066,850 75,397,110 75,904,959 76,605,446 77,514,691 78,649,948 80,020,028

EQUITY

Retained Earnings 33,102,000 33,351,307 34,091,229 34,510,643 35,067,853 35,523,850 35,854,110 36,361,959 37,062,446 37,971,691 39,106,948 40,477,028

Revaluation Reserves 39,543,000 39,543,000 39,543,000 39,543,000 39,543,000 39,543,000 39,543,000 39,543,000 39,543,000 39,543,000 39,543,000 39,543,000

Council Equity Interest 72,645,000 72,894,307 73,634,229 74,053,643 74,610,853 75,066,850 75,397,110 75,904,959 76,605,446 77,514,691 78,649,948 80,020,028

Minority Equity Interest - - - - - - - - - - - -

Total Equity 72,645,000 72,894,307 73,634,229 74,053,643 74,610,853 75,066,850 75,397,110 75,904,959 76,605,446 77,514,691 78,649,948 80,020,028

Projected Years

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Central Tablelands Water

10 Year Financial Plan for the Years ending 30 June 2028

INCOME STATEMENT - GENERAL FUND Actuals Current Year

Scenario: Scenario 2 - With 2 Wet Years 19/20 and 20/21 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28

$ $ $ $ $ $ $ $ $ $ $ $

Income from Continuing Operations

Revenue:

Rates & Annual Charges 1,225,000 1,436,140 1,473,921 1,504,431 1,535,573 1,567,359 1,599,804 1,632,920 1,666,721 1,701,222 1,736,438 1,772,382

User Charges & Fees 3,985,000 4,310,161 4,696,852 4,594,290 4,888,333 5,582,973 5,914,265 6,265,324 6,637,333 7,031,544 7,449,288 7,891,972

Interest & Investment Revenue 210,000 128,000 105,000 108,443 112,010 115,709 119,543 123,520 127,646 131,926 136,369 140,982

Other Revenues 247,000 185,623 63,349 65,249 67,207 69,223 71,300 73,439 75,642 77,911 80,249 82,656

Grants & Contributions provided for Operating Purposes 55,000 52,071 52,071 53,633 55,242 56,899 58,606 60,365 62,175 64,041 65,962 67,941

Grants & Contributions provided for Capital Purposes 177,000 141,580 650,510 97,345 100,266 103,274 106,372 109,563 112,850 116,235 119,722 123,314

Other Income:

Net gains from the disposal of assets 85,000 81,000 57,000 57,000 57,000 57,000 57,000 57,000 57,000 57,000 57,000 57,000

Joint Ventures & Associated Entities - - - - - - - - - - - -

Total Income from Continuing Operations 5,984,000 6,334,575 7,098,704 6,480,392 6,815,631 7,552,438 7,926,890 8,322,130 8,739,367 9,179,881 9,645,028 10,136,247

Expenses from Continuing Operations

Employee Benefits & On-Costs 1,768,000 2,007,279 2,136,692 2,200,793 2,266,816 2,334,821 2,404,866 2,477,012 2,551,322 2,627,862 2,706,698 2,787,898

Borrowing Costs 172,000 143,932 114,437 83,170 49,352 312,630 585,951 569,015 551,041 531,963 511,715 490,225

Materials & Contracts 927,000 1,021,911 1,101,780 1,028,133 1,058,397 1,105,599 1,138,767 1,172,930 1,208,118 1,244,361 1,281,692 1,320,143

Depreciation & Amortisation 1,807,000 2,130,950 2,005,572 2,085,573 2,189,637 2,250,335 2,341,201 2,435,703 2,533,988 2,636,206 2,742,516 2,862,735

Impairment - - - - - - - - - - - -

Other Expenses 771,000 781,196 1,000,300 1,002,309 1,034,218 1,093,055 1,125,847 1,159,622 1,194,411 1,230,243 1,267,150 1,305,165

Interest & Investment Losses - - - - - - - - - - - -

Net Losses from the Disposal of Assets - - - - - - - - - - - -

Joint Ventures & Associated Entities - - - - - - - - - - - -

Total Expenses from Continuing Operations 5,445,000 6,085,268 6,358,781 6,399,978 6,598,421 7,096,440 7,596,631 7,814,282 8,038,879 8,270,636 8,509,772 8,766,166

Operating Result from Continuing Operations 539,000 249,307 739,922 80,414 217,210 455,997 330,260 507,849 700,488 909,245 1,135,257 1,370,080

Discontinued Operations - Profit/(Loss) - - - - - - - - - - - -

Net Profit/(Loss) from Discontinued Operations - - - - - - - - - - - -

Net Operating Result for the Year 539,000 249,307 739,922 80,414 217,210 455,997 330,260 507,849 700,488 909,245 1,135,257 1,370,080

Net Operating Result before Grants and Contributions provided for

Capital Purposes 362,000 107,727 89,412 (16,932) 116,944 352,724 223,888 398,286 587,638 793,010 1,015,534 1,246,766

Projected Years

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Central Tablelands Water

10 Year Financial Plan for the Years ending 30 June 2028

BALANCE SHEET - GENERAL FUND Actuals Current Year

Scenario: Scenario 2 - With 2 Wet Years 19/20 and 20/21 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28

$ $ $ $ $ $ $ $ $ $ $ $

ASSETS

Current Assets

Cash & Cash Equivalents 1,165,000 400,000 400,000 800,000 400,000 800,000 800,000 400,000 400,000 400,000 400,000 400,000

Investments 6,200,000 4,368,575 2,083,984 2,580,990 2,038,456 9,967,621 9,988,138 9,778,253 8,052,027 7,567,501 2,721,065 519,534

Receivables 351,000 308,424 417,282 301,347 312,585 407,592 426,011 441,763 451,109 470,168 460,820 471,021

Inventories 261,000 382,514 412,409 384,843 396,171 413,839 426,254 439,042 452,213 465,780 479,753 494,145

Other 23,000 29,673 34,593 33,414 34,438 36,183 37,268 38,386 39,538 40,724 41,946 43,204

Non-current assets classified as "held for sale" - - - - - - - - - - - -

Total Current Assets 8,000,000 5,489,186 3,348,268 4,100,594 3,181,650 11,625,235 11,677,672 11,097,445 9,394,887 8,944,173 4,103,584 1,927,904

Non-Current Assets

Investments - - - - - - - - - - - -

Receivables 3,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000

Inventories - - - - - - - - - - - -

Infrastructure, Property, Plant & Equipment 67,958,000 70,219,729 72,635,458 71,365,363 72,046,839 73,552,047 73,512,297 74,338,644 76,476,652 77,481,677 83,258,833 86,375,762

Investments Accounted for using the equity method - - - - - - - - - - - -

Investment Property - - - - - - - - - - - -

Intangible Assets - 77,184 77,184 77,406 87,855 115,208 142,803 170,648 198,750 227,117 255,757 275,024

Non-current assets classified as "held for sale" - - - - - - - - - - - -

Other - - - - - - - - - - - -

Total Non-Current Assets 67,961,000 70,311,913 72,727,642 71,457,769 72,149,693 73,682,255 73,670,100 74,524,291 76,690,402 77,723,793 83,529,590 86,665,786

TOTAL ASSETS 75,961,000 75,801,099 76,075,910 75,558,363 75,331,343 85,307,490 85,347,771 85,621,736 86,085,289 86,667,966 87,633,174 88,593,690

LIABILITIES

Current Liabilities

Bank Overdraft - - - - - - - - - - - -

Payables 274,000 316,242 346,952 234,913 302,267 339,613 303,446 338,980 388,032 365,037 517,230 449,721

Income received in advance 91,000 83,294 88,193 86,328 91,812 104,720 110,896 117,440 124,373 131,719 139,502 147,748

Borrowings 437,000 466,219 497,486 531,304 413,245 275,982 292,918 310,892 329,970 350,218 371,708 394,518

Provisions 602,000 593,390 559,213 572,517 586,620 601,568 617,414 634,210 652,014 670,887 690,891 712,096

Liabilities associated with assets classified as "held for sale" - - - - - - - - - - - -

Total Current Liabilities 1,404,000 1,459,146 1,491,845 1,425,063 1,393,945 1,321,884 1,324,674 1,401,522 1,494,389 1,517,860 1,719,331 1,704,083

Non-Current Liabilities

Payables - - - - - - - - - - - -

Income received in advance - - - - - - - - - - - -

Borrowings 1,908,000 1,442,036 944,549 413,245 - 9,592,069 9,299,151 8,988,259 8,658,289 8,308,072 7,936,363 7,541,846

Provisions 4,000 5,610 5,287 5,413 5,546 5,687 5,837 5,996 6,164 6,343 6,532 6,732

Investments Accounted for using the equity method - - - - - - - - - - - -

Liabilities associated with assets classified as "held for sale" - - - - - - - - - - - -

Total Non-Current Liabilities 1,912,000 1,447,646 949,836 418,658 5,546 9,597,756 9,304,988 8,994,255 8,664,454 8,314,414 7,942,895 7,548,578

TOTAL LIABILITIES 3,316,000 2,906,792 2,441,681 1,843,720 1,399,491 10,919,640 10,629,662 10,395,777 10,158,842 9,832,274 9,662,226 9,252,661

Net Assets 72,645,000 72,894,307 73,634,229 73,714,643 73,931,853 74,387,850 74,718,110 75,225,959 75,926,446 76,835,691 77,970,948 79,341,028

EQUITY

Retained Earnings 33,102,000 33,351,307 34,091,229 34,171,643 34,388,853 34,844,850 35,175,110 35,682,959 36,383,446 37,292,691 38,427,948 39,798,028

Revaluation Reserves 39,543,000 39,543,000 39,543,000 39,543,000 39,543,000 39,543,000 39,543,000 39,543,000 39,543,000 39,543,000 39,543,000 39,543,000

Council Equity Interest 72,645,000 72,894,307 73,634,229 73,714,643 73,931,853 74,387,850 74,718,110 75,225,959 75,926,446 76,835,691 77,970,948 79,341,028

Minority Equity Interest - - - - - - - - - - - -

Total Equity 72,645,000 72,894,307 73,634,229 73,714,643 73,931,853 74,387,850 74,718,110 75,225,959 75,926,446 76,835,691 77,970,948 79,341,028

Projected Years

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Central Tablelands Water

10 Year Financial Plan for the Years ending 30 June 2028

CASH FLOW STATEMENT - GENERAL FUND Actuals Current Year

Scenario: Scenario 2 - With 2 Wet Years 19/20 and 20/21 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28

$ $ $ $ $ $ $ $ $ $ $ $

Cash Flows from Operating ActivitiesReceipts:

Rates & Annual Charges 1,225,000 1,436,140 1,473,921 1,504,431 1,535,573 1,567,359 1,599,804 1,632,920 1,666,721 1,701,222 1,736,438 1,772,382

User Charges & Fees 3,990,000 4,309,429 4,676,331 4,599,733 4,872,728 5,546,110 5,896,684 6,246,694 6,617,591 7,010,624 7,427,119 7,868,479

Interest & Investment Revenue Received 215,000 144,017 119,480 103,905 117,514 58,919 119,922 127,655 139,341 135,132 169,276 155,711

Grants & Contributions 182,000 194,265 596,444 266,015 154,563 159,200 163,976 168,895 173,962 179,181 184,557 190,093

Bonds & Deposits Received - - - - - - - - - - - -

Other 600,000 192,593 71,568 63,378 72,498 81,749 77,262 79,758 82,339 85,008 87,770 90,627

Payments:

Employee Benefits & On-Costs (2,049,000) (2,016,307) (2,170,822) (2,187,232) (2,252,447) (2,319,593) (2,388,728) (2,459,910) (2,533,199) (2,608,655) (2,686,344) (2,766,328)

Materials & Contracts (825,000) (1,210,405) (1,107,898) (1,004,801) (1,064,399) (1,114,788) (1,145,531) (1,179,897) (1,215,294) (1,251,753) (1,289,305) (1,327,984)

Borrowing Costs (172,000) (143,932) (114,437) (83,170) (49,352) (312,630) (585,951) (569,015) (551,041) (531,963) (511,715) (490,225)

Bonds & Deposits Refunded - - - - - - - - - - - -

Other (1,021,000) (781,196) (1,000,300) (1,002,309) (1,034,218) (1,093,055) (1,125,847) (1,159,622) (1,194,411) (1,230,243) (1,267,150) (1,305,165)

Net Cash provided (or used in) Operating Activities 2,145,000 2,124,605 2,544,288 2,259,949 2,352,461 2,573,272 2,611,592 2,887,478 3,186,010 3,488,553 3,850,644 4,187,591

Cash Flows from Investing Activities

Receipts:

Sale of Investment Securities 800,000 1,831,425 2,284,591 - 542,534 - - 209,885 1,726,226 484,526 4,846,436 2,201,532

Sale of Investment Property - - - - - - - - - - - -

Sale of Real Estate Assets - - - - - - - - - - - -

Sale of Infrastructure, Property, Plant & Equipment 310,000 - - - - - - - - - - -

Sale of Interests in Joint Ventures & Associates - - - - - - - - - - - -

Sale of Intangible Assets - - - - - - - - - - - -

Deferred Debtors Receipts - - - - - - - - - - - -

Sale of Disposal Groups -

Distributions Received from Joint Ventures & Associates - - - - - - - - - - - -

Other Investing Activity Receipts -

Payments:

Purchase of Investment Securities - - - (497,007) - (7,929,164) (20,517) - - - - -

Purchase of Investment Property - - - - - - - - - - - -

Purchase of Infrastructure, Property, Plant & Equipment (2,539,000) (4,204,285) (4,362,660) (865,456) (2,753,690) (3,698,914) (2,315,092) (3,204,445) (4,601,344) (3,643,109) (8,346,862) (6,017,414)

Purchase of Real Estate Assets - - - - - - - - - - - -

Purchase of Intangible Assets - (80,000) - - (10,000) - - - - - - -

Deferred Debtors & Advances Made (15,000) - - - - - - - - - - -

Purchase of Interests in Joint Ventures & Associates - - - - - - - - - - - -

Contributions Paid to Joint Ventures & Associates - - - - - - - - - - - -

Other Investing Activity Payments -

Net Cash provided (or used in) Investing Activities (1,444,000) (2,452,860) (2,078,069) (1,362,462) (2,221,156) (11,628,078) (2,335,610) (2,994,560) (2,875,118) (3,158,583) (3,500,427) (3,815,882)

Cash Flows from Financing Activities

Receipts:

Proceeds from Borrowings & Advances - - - - - 10,000,000 - - - - - -

Proceeds from Finance Leases - - - - - - - - - - - -

Other Financing Activity Receipts -

Payments:

Repayment of Borrowings & Advances (409,000) (436,745) (466,219) (497,486) (531,304) (545,194) (275,982) (292,918) (310,892) (329,970) (350,218) (371,708)

Repayment of Finance Lease Liabilities - - - - - - - - - - - -

Distributions to Minority Interests - - - - - - - - - - - -

Other Financing Activity Payments -

Net Cash Flow provided (used in) Financing Activities (409,000) (436,745) (466,219) (497,486) (531,304) 9,454,806 (275,982) (292,918) (310,892) (329,970) (350,218) (371,708)

Net Increase/(Decrease) in Cash & Cash Equivalents 292,000 (765,000) 0 400,000 (400,000) 400,000 (0) (400,000) (0) (0) (0) (0)

plus: Cash, Cash Equivalents & Investments - beginning of year 873,000 1,165,000 400,000 400,000 800,000 400,000 800,000 800,000 400,000 400,000 400,000 400,000

Cash & Cash Equivalents - end of the year 1,165,000 400,000 400,000 800,000 400,000 800,000 800,000 400,000 400,000 400,000 400,000 400,000

Cash & Cash Equivalents - end of the year 1,165,000 400,000 400,000 800,000 400,000 800,000 800,000 400,000 400,000 400,000 400,000 400,000

Investments - end of the year 6,200,000 4,368,575 2,083,984 2,580,990 2,038,456 9,967,621 9,988,138 9,778,253 8,052,027 7,567,501 2,721,065 519,534

Cash, Cash Equivalents & Investments - end of the year 7,365,000 4,768,575 2,483,984 3,380,990 2,438,456 10,767,621 10,788,138 10,178,253 8,452,027 7,967,501 3,121,065 919,534

Representing:

- External Restrictions - - - - - - - - - - - -

- Internal Restricitons 6,865,000 4,475,686 (2,002,151) (5,443,458) (10,759,718) (6,862,001) (11,657,290) (17,484,418) (24,707,802) (30,886,139) (42,828,300) (52,205,740)

- Unrestricted 500,000 292,889 4,486,134 8,824,448 13,198,174 17,629,621 22,445,428 27,662,671 33,159,829 38,853,640 45,949,365 53,125,274

7,365,000 4,768,575 2,483,984 3,380,990 2,438,456 10,767,621 10,788,138 10,178,253 8,452,027 7,967,501 3,121,065 919,534

Projected Years

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Central Tablelands Water

10 Year Financial Plan for the Years ending 30 June 2028

INCOME STATEMENT - GENERAL FUND Actuals Current Year

Scenario: Scenario 3 - User Charges up 10% 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28

$ $ $ $ $ $ $ $ $ $ $ $

Income from Continuing Operations

Revenue:

Rates & Annual Charges 1,225,000 1,436,140 1,473,921 1,504,431 1,535,573 1,567,359 1,599,804 1,632,920 1,666,721 1,701,222 1,736,438 1,772,382

User Charges & Fees 3,985,000 4,310,161 4,869,250 5,158,032 5,464,039 5,788,302 6,131,914 6,496,032 6,881,883 7,290,767 7,724,064 8,183,234

Interest & Investment Revenue 210,000 128,000 105,000 108,443 112,010 115,709 119,543 123,520 127,646 131,926 136,369 140,982

Other Revenues 247,000 185,623 63,349 65,249 67,207 69,223 71,300 73,439 75,642 77,911 80,249 82,656

Grants & Contributions provided for Operating Purposes 55,000 52,071 52,071 53,633 55,242 56,899 58,606 60,365 62,175 64,041 65,962 67,941

Grants & Contributions provided for Capital Purposes 177,000 141,580 650,510 97,345 100,266 103,274 106,372 109,563 112,850 116,235 119,722 123,314

Other Income:

Net gains from the disposal of assets 85,000 81,000 57,000 57,000 57,000 57,000 57,000 57,000 57,000 57,000 57,000 57,000

Joint Ventures & Associated Entities - - - - - - - - - - - -

Total Income from Continuing Operations 5,984,000 6,334,575 7,271,102 7,044,134 7,391,337 7,757,766 8,144,539 8,552,838 8,983,917 9,439,103 9,919,804 10,427,510

Expenses from Continuing Operations

Employee Benefits & On-Costs 1,768,000 2,007,279 2,136,692 2,200,793 2,266,816 2,334,821 2,404,866 2,477,012 2,551,322 2,627,862 2,706,698 2,787,898

Borrowing Costs 172,000 143,932 114,437 83,170 49,352 312,630 585,951 569,015 551,041 531,963 511,715 490,225

Materials & Contracts 927,000 1,021,911 1,101,780 1,042,133 1,073,397 1,105,599 1,138,767 1,172,930 1,208,118 1,244,361 1,281,692 1,320,143

Depreciation & Amortisation 1,807,000 2,130,950 2,005,572 2,085,573 2,189,637 2,250,335 2,341,201 2,435,703 2,533,988 2,636,206 2,742,516 2,862,735

Impairment - - - - - - - - - - - -

Other Expenses 771,000 781,196 1,000,300 1,030,309 1,061,218 1,093,055 1,125,847 1,159,622 1,194,411 1,230,243 1,267,150 1,305,165

Interest & Investment Losses - - - - - - - - - - - -

Net Losses from the Disposal of Assets - - - - - - - - - - - -

Joint Ventures & Associated Entities - - - - - - - - - - - -

Total Expenses from Continuing Operations 5,445,000 6,085,268 6,358,781 6,441,978 6,640,421 7,096,440 7,596,631 7,814,282 8,038,879 8,270,636 8,509,772 8,766,166

Operating Result from Continuing Operations 539,000 249,307 912,320 602,155 750,916 661,326 547,908 738,556 945,038 1,168,468 1,410,033 1,661,343

Discontinued Operations - Profit/(Loss) - - - - - - - - - - - -

Net Profit/(Loss) from Discontinued Operations - - - - - - - - - - - -

Net Operating Result for the Year 539,000 249,307 912,320 602,155 750,916 661,326 547,908 738,556 945,038 1,168,468 1,410,033 1,661,343

Net Operating Result before Grants and Contributions provided for

Capital Purposes 362,000 107,727 261,810 504,810 650,650 558,052 441,536 628,993 832,188 1,052,232 1,290,310 1,538,029

Projected Years

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Central Tablelands Water

10 Year Financial Plan for the Years ending 30 June 2028

CASH FLOW STATEMENT - GENERAL FUND Actuals Current Year

Scenario: Scenario 3 - User Charges up 10% 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28

$ $ $ $ $ $ $ $ $ $ $ $

Cash Flows from Operating ActivitiesReceipts:

Rates & Annual Charges 1,225,000 1,436,140 1,473,921 1,504,431 1,535,573 1,567,359 1,599,804 1,632,920 1,666,721 1,701,222 1,736,438 1,772,382

User Charges & Fees 3,990,000 4,309,429 4,839,581 5,142,707 5,447,800 5,771,094 6,113,679 6,476,709 6,861,406 7,269,069 7,701,070 8,158,867

Interest & Investment Revenue Received 215,000 144,017 118,295 100,420 114,077 57,589 118,326 126,111 137,704 133,396 167,436 153,761

Grants & Contributions 182,000 194,265 596,444 266,015 154,563 159,200 163,976 168,895 173,962 179,181 184,557 190,093

Bonds & Deposits Received - - - - - - - - - - - -

Other 600,000 192,593 74,681 70,446 72,714 75,059 77,485 79,994 82,589 85,273 88,051 90,925

Payments:

Employee Benefits & On-Costs (2,049,000) (2,016,307) (2,170,822) (2,187,232) (2,252,447) (2,319,593) (2,388,728) (2,459,910) (2,533,199) (2,608,655) (2,686,344) (2,766,328)

Materials & Contracts (825,000) (1,210,405) (1,107,898) (1,021,048) (1,079,773) (1,112,166) (1,145,531) (1,179,897) (1,215,294) (1,251,753) (1,289,305) (1,327,984)

Borrowing Costs (172,000) (143,932) (114,437) (83,170) (49,352) (312,630) (585,951) (569,015) (551,041) (531,963) (511,715) (490,225)

Bonds & Deposits Refunded - - - - - - - - - - - -

Other (1,021,000) (781,196) (1,000,300) (1,030,309) (1,061,218) (1,093,055) (1,125,847) (1,159,622) (1,194,411) (1,230,243) (1,267,150) (1,305,165)

Net Cash provided (or used in) Operating Activities 2,145,000 2,124,605 2,709,466 2,762,258 2,881,937 2,792,859 2,827,214 3,116,184 3,428,438 3,745,527 4,123,036 4,476,326

Cash Flows from Investing Activities

Receipts:

Sale of Investment Securities 800,000 1,831,425 2,119,413 - 13,057 - - - 1,464,977 227,552 4,574,044 1,912,796

Sale of Investment Property - - - - - - - - - - - -

Sale of Real Estate Assets - - - - - - - - - - - -

Sale of Infrastructure, Property, Plant & Equipment 310,000 - - - - - - - - - - -

Sale of Interests in Joint Ventures & Associates - - - - - - - - - - - -

Sale of Intangible Assets - - - - - - - - - - - -

Deferred Debtors Receipts - - - - - - - - - - - -

Sale of Disposal Groups -

Distributions Received from Joint Ventures & Associates - - - - - - - - - - - -

Other Investing Activity Receipts -

Payments:

Purchase of Investment Securities - - - (999,316) - (8,148,751) (236,139) - - - - -

Purchase of Investment Property - - - - - - - - - - - -

Purchase of Infrastructure, Property, Plant & Equipment (2,539,000) (4,204,285) (4,362,660) (865,456) (2,753,690) (3,698,914) (2,315,092) (3,204,445) (4,601,344) (3,643,109) (8,346,862) (6,017,414)

Purchase of Real Estate Assets - - - - - - - - - - - -

Purchase of Intangible Assets - (80,000) - - (10,000) - - - - - - -

Deferred Debtors & Advances Made (15,000) - - - - - - - - - - -

Purchase of Interests in Joint Ventures & Associates - - - - - - - - - - - -

Contributions Paid to Joint Ventures & Associates - - - - - - - - - - - -

Other Investing Activity Payments -

Net Cash provided (or used in) Investing Activities (1,444,000) (2,452,860) (2,243,246) (1,864,772) (2,750,633) (11,847,665) (2,551,231) (3,204,445) (3,136,368) (3,415,557) (3,772,819) (4,104,618)

Cash Flows from Financing Activities

Receipts:

Proceeds from Borrowings & Advances - - - - - 10,000,000 - - - - - -

Proceeds from Finance Leases - - - - - - - - - - - -

Other Financing Activity Receipts -

Payments:

Repayment of Borrowings & Advances (409,000) (436,745) (466,219) (497,486) (531,304) (545,194) (275,982) (292,918) (310,892) (329,970) (350,218) (371,708)

Repayment of Finance Lease Liabilities - - - - - - - - - - - -

Distributions to Minority Interests - - - - - - - - - - - -

Other Financing Activity Payments -

Net Cash Flow provided (used in) Financing Activities (409,000) (436,745) (466,219) (497,486) (531,304) 9,454,806 (275,982) (292,918) (310,892) (329,970) (350,218) (371,708)

Net Increase/(Decrease) in Cash & Cash Equivalents 292,000 (765,000) 0 400,000 (400,000) 400,000 (0) (381,178) (18,822) (0) (0) (0)

plus: Cash, Cash Equivalents & Investments - beginning of year 873,000 1,165,000 400,000 400,000 800,000 400,000 800,000 800,000 418,822 400,000 400,000 400,000

Cash & Cash Equivalents - end of the year 1,165,000 400,000 400,000 800,000 400,000 800,000 800,000 418,822 400,000 400,000 400,000 400,000

Cash & Cash Equivalents - end of the year 1,165,000 400,000 400,000 800,000 400,000 800,000 800,000 418,822 400,000 400,000 400,000 400,000

Investments - end of the year 6,200,000 4,368,575 2,249,161 3,248,477 3,235,420 11,384,170 11,620,310 11,620,310 10,155,333 9,927,781 5,353,737 3,440,941

Cash, Cash Equivalents & Investments - end of the year 7,365,000 4,768,575 2,649,161 4,048,477 3,635,420 12,184,170 12,420,310 12,039,131 10,555,333 10,327,781 5,753,737 3,840,941

Representing:

- External Restrictions - - - - - - - - - - - -

- Internal Restricitons 6,865,000 4,475,686 (2,002,151) (5,443,458) (10,759,718) (6,862,001) (11,657,290) (17,484,418) (24,707,802) (30,886,139) (42,828,300) (52,205,740)

- Unrestricted 500,000 292,889 4,651,312 9,491,935 14,395,137 19,046,171 24,077,599 29,523,549 35,263,135 41,213,919 48,582,037 56,046,680

7,365,000 4,768,575 2,649,161 4,048,477 3,635,420 12,184,170 12,420,310 12,039,131 10,555,333 10,327,781 5,753,737 3,840,941

Projected Years

Page 31: Draft Long Term Financial Plan 2018/19- 2027/28 CTW - LTFP...Draft Long Term Financial Plan Page 8 The financial model has used an average assessment growth rate of 0.70% for the projection

Central Tablelands Water

10 Year Financial Plan for the Years ending 30 June 2028

BALANCE SHEET - GENERAL FUND Actuals Current Year

Scenario: Scenario 3 - User Charges up 10% 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28

$ $ $ $ $ $ $ $ $ $ $ $

ASSETS

Current Assets

Cash & Cash Equivalents 1,165,000 400,000 400,000 800,000 400,000 800,000 800,000 418,822 400,000 400,000 400,000 400,000

Investments 6,200,000 4,368,575 2,249,161 3,248,477 3,235,420 11,384,170 11,620,310 11,620,310 10,155,333 9,927,781 5,353,737 3,440,941

Receivables 351,000 308,424 427,697 336,197 351,513 428,022 448,696 466,691 478,415 499,995 493,319 506,353

Inventories 261,000 382,514 412,409 390,083 401,785 413,839 426,254 439,042 452,213 465,780 479,753 494,145

Other 23,000 29,673 34,593 34,106 35,129 36,183 37,268 38,386 39,538 40,724 41,946 43,204

Non-current assets classified as "held for sale" - - - - - - - - - - - -

Total Current Assets 8,000,000 5,489,186 3,523,861 4,808,863 4,423,847 13,062,214 13,332,527 12,983,250 11,525,499 11,334,279 6,768,755 4,884,643

Non-Current Assets

Investments - - - - - - - - - - - -

Receivables 3,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000

Inventories - - - - - - - - - - - -

Infrastructure, Property, Plant & Equipment 67,958,000 70,219,729 72,635,458 71,365,363 72,046,839 73,552,047 73,512,297 74,338,644 76,476,652 77,481,677 83,258,833 86,375,762

Investments Accounted for using the equity method - - - - - - - - - - - -

Investment Property - - - - - - - - - - - -

Intangible Assets - 77,184 77,184 77,406 87,855 115,208 142,803 170,648 198,750 227,117 255,757 275,024

Non-current assets classified as "held for sale" - - - - - - - - - - - -

Other - - - - - - - - - - - -

Total Non-Current Assets 67,961,000 70,311,913 72,727,642 71,457,769 72,149,693 73,682,255 73,670,100 74,524,291 76,690,402 77,723,793 83,529,590 86,665,786

TOTAL ASSETS 75,961,000 75,801,099 76,251,502 76,266,632 76,573,540 86,744,469 87,002,627 87,507,541 88,215,900 89,058,072 90,298,345 91,550,428

LIABILITIES

Current Liabilities

Bank Overdraft - - - - - - - - - - - -

Payables 274,000 316,242 346,952 238,597 305,951 339,613 303,446 338,980 388,032 365,037 517,230 449,721

Income received in advance 91,000 83,294 91,387 96,773 102,479 108,524 114,928 121,714 128,904 136,521 144,592 153,144

Borrowings 437,000 466,219 497,486 531,304 413,245 275,982 292,918 310,892 329,970 350,218 371,708 394,518

Provisions 602,000 593,390 559,213 572,517 586,620 601,568 617,414 634,210 652,014 670,887 690,891 712,096

Liabilities associated with assets classified as "held for sale" - - - - - - - - - - - -

Total Current Liabilities 1,404,000 1,459,146 1,495,039 1,439,191 1,408,295 1,325,688 1,328,706 1,405,797 1,498,919 1,522,663 1,724,422 1,709,479

Non-Current Liabilities

Payables - - - - - - - - - - - -

Income received in advance - - - - - - - - - - - -

Borrowings 1,908,000 1,442,036 944,549 413,245 - 9,592,069 9,299,151 8,988,259 8,658,289 8,308,072 7,936,363 7,541,846

Provisions 4,000 5,610 5,287 5,413 5,546 5,687 5,837 5,996 6,164 6,343 6,532 6,732

Investments Accounted for using the equity method - - - - - - - - - - - -

Liabilities associated with assets classified as "held for sale" - - - - - - - - - - - -

Total Non-Current Liabilities 1,912,000 1,447,646 949,836 418,658 5,546 9,597,756 9,304,988 8,994,255 8,664,454 8,314,414 7,942,895 7,548,578

TOTAL LIABILITIES 3,316,000 2,906,792 2,444,875 1,857,849 1,413,841 10,923,444 10,633,694 10,400,052 10,163,373 9,837,077 9,667,317 9,258,057

Net Assets 72,645,000 72,894,307 73,806,627 74,408,783 75,159,699 75,821,025 76,368,933 77,107,489 78,052,527 79,220,995 80,631,028 82,292,371

EQUITY

Retained Earnings 33,102,000 33,351,307 34,263,627 34,865,783 35,616,699 36,278,025 36,825,933 37,564,489 38,509,527 39,677,995 41,088,028 42,749,371

Revaluation Reserves 39,543,000 39,543,000 39,543,000 39,543,000 39,543,000 39,543,000 39,543,000 39,543,000 39,543,000 39,543,000 39,543,000 39,543,000

Council Equity Interest 72,645,000 72,894,307 73,806,627 74,408,783 75,159,699 75,821,025 76,368,933 77,107,489 78,052,527 79,220,995 80,631,028 82,292,371

Minority Equity Interest - - - - - - - - - - - -

Total Equity 72,645,000 72,894,307 73,806,627 74,408,783 75,159,699 75,821,025 76,368,933 77,107,489 78,052,527 79,220,995 80,631,028 82,292,371

Projected Years

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Appendix B – 10 Year Capital Program

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Central Tablelands Water

10 Year Financial Plan for the Years ending 30 June 2027

CAPITAL EXPENDITURE PROGRAM

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

$ $ $ $ $ $ $ $ $ $ $

Pump Replacement 47,741 49,173 50,648 52,167 53,732 55,344 57,005 58,715 60,476 62,291 547,292

Vehicle Replacement 465,560 479,527 493,913 508,730 523,992 539,712 555,903 572,580 589,757 607,450 5,337,123

Other Plant and Equipment Replacement 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 100,000

Joint CTW & Orange City Council pipeline Project

Computer Hardware/Office Equipment 10,000 10,000 10,500 10,500 10,500 51,500

Rugged Tablet Replacement 20,000 20,000

Asset Management Software Development

Blayney Administration Office Indoor Refurbishment 40,000 55,000 95,000

Blayney Office - Outdoor refubishment (painting) 10,000 554,447 564,447

Blayney Depot Refurbishment 40,000 40,000

Canowindra Depot Refurbishment 30,000 30,000

Reticulation Mains Renewals - Rural Scheme

Wallaby Pipeline

Reticulation Mains Renewals 0 60,000 60,000 80,000 285,151 293,706 302,517 311,593 320,940 1,713,907

Trunk Main Renewals

Trunk Main 'K' Relocation - Stage 3 - Approx 14kms 2,900,000 2,900,000

Trunk Main 'U' - 'C' to Cudal 138,776 2,191,028 2,191,028 4,520,832

Trunk Main 'C' - Mandurama to 'U' 297,502 4,971,102 4,971,102 10,239,706

Trunk Main 'B' - CWFP to Mandurama 75,642 1,479,956 1,555,598

Trunk Main 'C' - 'U' to Gooloogong 240,706 3,404,866 3,645,572

Trunk Main 'P' - 'C' to Somers 120,000 120,000

Trunk Main 'A' - Part - 300 mtrs (Grant Funded) 556,000 556,000

Lake Rowlands Remediation Works 2,100,000 2,100,000

Bore renewals Gooloogong 825,000 165,288 165,288 1,155,576

Energy Audit Initiatives 40,000 0 40,000

Smart Metering Trial 40,000 40,000 80,000

Carcoar WFP - Mechanical and Electrical Refurbishment 1,468,534 1,468,534 2,937,068

Telemetry 20,000 150,000 50,000 220,000

Blayney Water Filtration Plant - Access Rd and Carpark 25,000 25,000

Blayney Water Filtration Plant 40,000 70,000 93,019 930,148 1,133,167

Carcoar WFP Reservoir - 12 ML 100,000 2,200,000 2,300,000

Total Capital Expenditure 4,364,301 758,700 2,824,561 3,725,897 2,332,046 3,292,894 4,703,098 3,673,048 9,451,314 6,901,931 42,027,788

Projected Years