long term financial plan - shire of esperance...business plan identifies the priorities for the...

Long Term Financial Plan

2 Long Term Financial Plan: 2018-2028

Community Leader

ship G

oal -

Strate

gic C

ommunity P

lan 20

17-20

27

A shire that manages its finances, services and assets sustainably exceeding community

needs

3Long Term Financial Plan: 2018-2028

Contents

Planning Context .....................................................................................................................................................................4Integrated Planning & Reporting ....................................................................................................................................................................4Developing the Long Term Financial Plan .........................................................................................................................................5

Strategic Context ...................................................................................................................................................................6Vision - Strategic Community Plan 2017-2027........................................................................................................................... 6Mission - Corporate Business Plan 2017-2021 ............................................................................................................................... 6Community & Economy .............................................................................................................................................................................................. 6Challenges facing the Shire ...................................................................................................................................................................................7Council Focus ............................................................................................................................................................................................................................8Priority Projects ........................................................................................................................................................................................................................8Projects Underway ...............................................................................................................................................................................................................8The Role of Local Government ....................................................................................................................................................................... 9

Operational Context ..................................................................................................................................................... 10Organisation Structure ................................................................................................................................................................................................10Current Financial Situation ....................................................................................................................................................................................10Risk Management .................................................................................................................................................................................................................... 11Asset Management ..............................................................................................................................................................................................................12Workforce Planning ........................................................................................................................................................................................................... 13

Financial Context ................................................................................................................................................................14Financial Strategies ............................................................................................................................................................................................................ 14Rating Strategy ...................................................................................................................................................................................................................... 14Debt Strategy .......................................................................................................................................................................................................................... 15Valuation of Non-Current Assets ...................................................................................................................................................................... 16Scenario Modelling ............................................................................................................................................................................................................. 16Sensitivity Analysis .................................................................................................................................................................................................................. 16Financial Assumptions. ......................................................................................................................................................................................................17

Financial Projections ......................................................................................................................................................20

Projections & Calculations ......................................................................................................................................... 21

Glossary of Terms ..............................................................................................................................................................79


1. Planning Context

1.1. Integrated Planning & ReportingLocal Government performs a significant role in every community, even more so in regional areas where the delivery of vital services and infrastructure keeps communities together.

In 2011 the State government introduced the legislated Integrated Planning & Reporting Framework. This framework was developed to ensure all local governments plan responsibly for the future and equip their organisations to respond to short, medium and long term community needs. The Shire of Esperance has embraced this framework from its introduction and is dedicated to planning sustainably for the benefit of the Esperance community.

The Long Term Financial Plan (LTFP) is a key document informed by the Strategic Community Plan, Corporate Business Plan and other strategic documents. The LTFP a is plan for the next ten years ensuring the Shire is financially sustainable as we work towards achieving the Strategic Community Plan.

Plant & Fleet

Replacements Plans

Asset Management

Plans

Long Term Financial Plan

Workforce Plan

Coastal Management

Plan

Esperance Branding Guidelines

Revenue Strategy

Disability Access &

Inclusion Plan

Public Open Space

Strategy

Sports Facilities & Service Plan

Youth Friendly

Community Report

Plus 55

Community Report

Esperance Coastal Hazard

Adaptation Strategy

Corporate Business Plan

Annual Budget

Strategic Community

PlanReviewed every four years

Reviewed

every two

yea

rs

Reviewed every year

Reviewed every year

Figure 1 - Integrated Planning & Reporting Framework


1.2. Developing the Long Term Financial PlanThe Long Term Financial Plan (LTFP) is a modelling tool to project the Shires financial commitments over the next ten years as a means of helping to ensure financial sustainability.

The Long Term Financial Plan is a dynamic tool which analyses financial trends over a ten year period on a range of assumptions and provides information to assess the impacts of current decisions and budgets on future financial sustainability. The aim of the Long Term Financial Plan is to achieve the following objectives:

• Help to project commitments with regards to the costs of new services or projects as a result of community growth and expectations or changing demographics

• Maintain a strong cash position, ensuring that the Shire remains financially sustainable in the long term and has the capacity to respond to unexpected opportunities or unpredictable events such as natural disasters

• Strategically pursue state and federal government grant funding opportunities where aligned with the Strategic Community Plan and the Corporate Business Plan requirements

• Plan rate increases to balance the budget so we can provide for service delivery that meets reasonable community needs

• Ensure that critical infrastructure asset renewal is funded at the optimum time

• Maximise opportunities for Shire freehold properties from an economic and community development perspective

• Support the broad review of our Strategic Community Plan every two years and a full review every four years.

This Long Term Financial Plan will be reviewed annually in conjunction with the budget process to ensure continued sustainability.

The following diagram illustrates the process undertaken to develop the Long Term Financial Plan.

Environmental analysis of the organisations current

financial situation

Set financial

assumptions and projections

for future planning

Phase One

Financial analysis

including revenue planning, sensitivity analysis, scenario modelling and

informing documents

Draft Long Term Financial

Plan

Phase Two

Financial capability and sustainability information for the whole of the Shire

10 year Long Term Financial

Plan

Phase Three

Figure 2 – Developing the Long Term Financial Plan


2. Strategic ContextThe Strategic Community Plan is the Shire’s overarching plan which guides the future direction of Council’s policies, plans, projects and decision making over the next ten years to 2027. The Corporate Business Plan identifies the priorities for the Shire and outlines the actions that will be undertaken to address the Strategic Community Plan. The following is the strategic context which the Long Term Financial Plan must operate within.

2.1. Vision - Strategic Community Plan 2017-2027

The Esperance Community is vibrant, welcoming and supportive and values

its social connections and natural landscape.

2.2. Mission - Corporate Business Plan 2017-2021

The Shire of Esperance, as custodians of community infrastructure, will endeavour to be efficient, sustainable and responsive to community needs. As a leading organisation we will operate in a responsible, transparent and ethical manner.

2.3. Community & EconomyThe Shire of Esperance encompasses over 44,000km2 of land and is located on Western Australia’s South East coast 725km from the capital, Perth.

With a population of just over 14,000, the Esperance region has one of the lowest population densities to be found anywhere and is comprised of some of the most spectacular landscapes in Western Australia. It includes approximately 500km of coastline ranging from the gently undulating bays and bountiful islands of the Recherché Archipelago to the spectacular cliffs of the Great Australian Bight.

Esperance is a regional hub with a diverse and vibrant community, who actively get involved in making things happen. The environment and agricultural aspects of Esperance are a significant part of our heritage, values and identity. Our National Parks, Ramsar wetlands and dramatic coastline provide a number of recreational and tourism opportunities.

We are a sustainable community, that does not suffer the fluctuating population other regional towns experience as a result of significant shifts in industry and agriculture, nor do we have the same degree of urban drift. The natural beauty of Esperance, our climate, isolation and lifestyle continue to attract people to our region and encourage them to stay.


Our economy has historically been based around agriculture and the Esperance Port which have provided a solid foundation for employment and investment. Shifts in the mining industry have resulted in a reduction of employment opportunities offered by the Esperance Port. In the coming years it is anticipated that increased interest in the region will support substantial growth in the Tourism industry and that paired with the capacity for agricultural growth in the areas of research, development and innovation, Esperance will continue to prosper.

The main economic drivers for the Esperance region are agriculture, manufacturing, fishing, tourism and small businesses. It is the employment generated by these key industries that provides a sound economic base for the Shire to build on.

2.4. Challenges facing the ShireThe Esperance Community faces a variety of challenges and opportunities that need careful planning over the next 10 years. Council listens to all sections of the community, encourages and supports innovation, delivers vital community services and facilities, and provides strong leadership within the community.

Opportunities • Improving and facilitating local events &

festivals

• Develop the tourist experience and extend the tourism season

• Develop stronger partnerships and foster inspirational and passionate leaders

• Give the community access to a recreational jetty

• Partner with other coastal communities and work with environmental partners

Challenges • Mental health issues and a significant rise

in drug usage in our community

• Attracting new industry to Esperance and increasing employment opportunities

• Sharing our achievements while building trust and confidence in the community

• Funding and investment for town revitalisation making Esperance a vibrant regional centre

• Protect our natural assets from overuse

4,853km of Roads5,900km2 of National Parks & Reserves

12,950km2 of Agricultural Land

44,798km2

Population

14,2367,500

Rate Asses

sments


2.5. Council FocusAfter reviewing the consultation results from the Strategic Community Plan 2017-2027, Council identified a number of focus areas. Identifying these distinct focuses for the next ten years will ensure strong core service delivery by the Shire. Council’s focuses will be to:

• Continue to advocate for sustainable and efficient utilities that facilitate connectivity within the region.

• Provide a best practice Waste Management Facility and investigate possible alternative methods of waste management.

• Maintain and protect the cultural and environmental values of our natural areas, while providing sustainable economic and recreational use that ensures they are not depleted from overuse.

• Promote visiting Esperance by facilitating the development of a tourism culture, enhancing the visitor experience by providing infrastructure and promoting the opportunities that abound in our region.

• Attract people looking to live, work and invest in our community.

• Continue to support existing businesses and industries and encourage new initiatives and innovative ideas.

• Advocate for increased health services and provide support to external agencies who work with our community.

2.6. Priority ProjectsThe Shire is actively planning for and advocating for funding for a number of significant projects across the Shire.

These priority projects have been identified to improve the quality of services in the Shire, and include:

• Waste Management Initiatives to reduce our reliance on landfill

• Greater Sports Ground Redevelopment, commencing with the design and construction of a new Indoor Sports Stadium

• Esperance Waterfront - Tanker Jetty, a sustainable resolution that allows the community to have access to a jetty

2.7. Projects UnderwayIn addition to the priority projects, the Shire is currently building and working on a number of significant projects and include:

• Closing the Asset Management Gap

• Esperance Waste Disposal Facility

• Eastern Suburbs Water Re-use Scheme

• Public Open Space Implementation

• Esperance Town Centre Parking, Traffic and Pedestrian Strategy

• Development of Flinders Subdivision

• Indoor Sports Stadium Upgrade

• Road Hierarchy & Maintenance Program

• Visitor Centre operations

• Develop an Indigenous Land Use Agreement with local Native Title Claimants

• Bay of Isles Leisure Centre solar panel upgrade


2.8. The Role of Local GovernmentThe nine elected members make up the Council. Councillors play a very important policy-making role, requiring the identification of community needs, setting objectives to meet those needs, establishing priorities between competing demands and allocating resources. They meet monthly to discuss issues facing the community, the Shire and make decisions.

The implementation of the Council policy and plans and the ongoing management and administration of Shire affairs is the responsibility of the Chief Executive Officer and employed staff.

The Council acts in multiple roles which are put into practice by the Shire officers. These roles inform how the Shire will activate the Strategic Community Plan through new initiatives and operational activities.

Council’s Role Council will Example

LeadPlan and provide direction through policy and practices

Take a leadership role in the revitalisation of the Esperance town centre

ProvideDevelop physical infrastructure and deliver essential services

Council funds recreational facilities such as sports fields and community halls and provides services such as residential waste collection

RegulateResponsible for the enforcement of statutory requirements

Health inspections to ensure quality provision of food and beverage services

PartnerCollaborate with external stakeholders to deliver services/projects

Working with South Coast NRM to achieve joint outcomes on Coastal Management

AdvocateProactively make representation for the Esperance community

Advocate for the community to improve facilities and services in Esperance such as Health Care and Education

Promote Market the Esperance community Promote and highlight the Esperance Region to boost Tourism

FacilitateCoordinate local groups and agencies to achieve a positive benefit for the community

Facilitate with groups who have common goals and could work together to achieve desired outcomes

FundProvide resources for the benefit of the local community

Community Grants Program designed for community groups to have access to funding opportunities


3. Operational Context

3.1. Organisation StructureThe Shire delivers services to the community through four directorates. Each directorate are comprised of several departments. The Corporate Business Plan has guided the development of the Long Term Financial Plan through the activities of these directorates and departments. A summary of the services provided by each directorates is identified below.

Executive Services

Corporate Resources

Asset Management

External Services

Council LiaisonCorporate ReportingExecutive Assistance

Media & CommunicationsElected Member Support

Organisation ManagementGovernance

Finance ManagementRates

Customer ServiceLease ManagementTenders & Contracts

LicensingInsuranceRecordsPayroll

Information TechnologyHuman ResourcesRisk Management

Occupational, Safety & Health

Asset ManagementDrafting

SurveyingBuilding Maintenance

Fleet ManagementFixed Plant

Depot & StoresParks & Reserves

Esperance CemeteryRoads, Drains &

FootpathsProject Management

Bay of Isles Leisure CentreAirport

Waste ManagementLand & Property

DevelopmentEconomic Development

Civic CentreVisitor Centre

Library & CultureCommunity DevelopmentSeniors, Youth & Disability

Esperance Home CareVolunteer Resource

CentreEmergency Services

RangersHealth & Environment

3.2. Current Financial SituationThe Shire of Esperance has historically adopted balanced budgets each year. This has ensured a sound financial position for the Shire on a year to year approach. Capital expenditure has been adjusted each year to ensure cash deficits are not accumulated. The Shire could continue this budgeting cycle well into the future with minimal noticeable side effects, however the now well documented and increasingly understood infrastructure renewal gap will be unable to be addressed meaningfully and would progressively lead to a reduction in the level of service that the Shire provides.

To maintain current service levels it is imperative for the renewal of infrastructure to happen at the optimal intervention period. Capital expenditure on renewal of existing infrastructure will need to increase and match the asset management plans.

The Shire is currently generating operating deficits. One of the main objectives of creating a LTFP is to see a movement towards a small operating surplus over the longer term. The operating deficit position

has been exacerbated by a move to fair value accounting, as the current depreciation expense that is contained within the operating statement is now based on fair value costs. The increase in depreciation has directly impacted the operating statement.

The Shire is currently heavily reliant upon operational and capital grant funding. In the 2017/18 budget external grants accounted for approximately 26% of total income. A large portion of capital expenditure is also reliant upon external funding to assist in the capital works program. Programs such as Roads to Recovery and Regional Road Group are integral to the road network. Any removal or decrease in these external grants will have a direct effect on service levels that the Shire currently undertakes.

The Shire employs a large number of staff to maintain service levels. Local Governments are in a competitive employment environment with other employers and need to ensure remuneration and working conditions are comparable.


3.3. Risk ManagementThe Shire is committed to implementing the Risk Management Policy to ensure the goals of the Strategic Community Plan are met and inform decision making within the organisation.

The aim of the Risk Management Policy is to protect Shire employees, assets, earnings, liabilities and the public against potential losses and improve the effectiveness and efficiency of the organisation.

The objectives of Risk Management Policy are:• Optimise the achievement of our vision, mission, strategies, goals and objectives. • Provide transparent and formal oversight of the risk and control environment to enable effective

decision making. • Enhance risk versus return within our risk appetite. • Embed appropriate and effective controls to mitigate risk. • Achieve effective corporate governance and adherence to relevant statutory, regulatory and

compliance obligations. • Enhance organisational resilience. • Identify and provide for the continuity of critical operations.

Key Organisation RisksThe Risk Management Register is an all-embracing document identifying organisational risks and develops treatment plans.

The following key organisation wide risks have been identified:• Reduction of external funding sources • Education to community and elected members on changes to legislation/compliance• Improved reporting of identified areas of non-compliance to the Executive Management Team• Improved project/change management to ensure effective communication and consultation occurs• Improved internal communication to reduce level of duplication and errors

The major risks associated with the Long Term Financial Plan relate to delays in approvals for major projects and the viability of a project if it relies on land acquisition which may be affected by land price movements and funding of projects.

Shire projects that are funded through rate revenue and do not require external approvals have lower risks associated with them. However projects that rely heavily on external funding and additional stakeholders have a far greater risk impact on the Shires long term financial planning.

The following risks identified will be dealt with in the Long Term Financial Plan:• Reduced funding from external sources for projects.• Unable to meet service levels required and expected by the community.• Failure to comply with relevant legislation.• Diminishing volunteer base may affect service levels or require paid for positions.• Interest rates on borrowings and investments are predicted to be relatively constant over the life

of the long term financial plan. If adverse changes occur this may impact on the Shires reserves and future project costs.

• Loss of funded positions within the Shire may affect service levels or require paid for positions.• Unexpected one-off expenditures.• Ageing assets nearing end of life.


3.4. Asset ManagementThe Shire has developed a strategic approach to asset management and developed asset management plans based on the total life cycle of assets. Asset management planning ensures delivery of services from infrastructure is provided in a financially sustainable manner.

The Asset Management Plan details information about infrastructure assets including actions required to provide an agreed level of service in the most cost efficient manner. The plan defines the services to be provided, how the services are provided and what funds are required to provide the services.

The Asset Management Plans assist the Shire

in predicting infrastructure renewal demand. The renewal demand is the cost of bringing an asset back to new at the optimum time in its life-cycle. The objectives of Asset Management are:

• Ensure a life cycle approach• Develop cost effective management strategies

for the long term• Provide a defined level of service and monitor

performance• Understand and meet the demands of growth• Manage risks• Ensure the continuous improvement in asset

management practices.

Funding Gap Summary

ServicePredicted Renewal Expenditure ($/yr)*

Current Renewal Expenditure LTFP ($/yr) Predicted Gap ($/yr)

Transport $ 10,125,258 $ 9,988,972 - $ 136,286Buildings $ 2,231,756 $ 1,722,600 - $ 509,156Furniture & Equip $ 112,030 $ 120,631 $ 8,602Parks & Reserves $ 1,075,740 $ 919,460 - $ 156,280Airport $ 379,222 $ 321,446 - $ 57,775Footpaths $ 438,281 $ 74,235 - $ 364,045Drainage $ 232,740 $ - - $ 232,740Other Infrastructure $ 1,234,431 $ 672,323 - $ 562,107Fleet $ 2,252,310 $ 2,252,310 $ 0

TOTALS $ 18,081,766 $ 16,071,978 - $ 2,009,788*Based on depreciation

Reserve Transfers(Cash) for future Asset Renewal

Jetty Reserve $ 141,583 $ 141,583

Building Maintenance & Replacement Reserve $ 461,908 $ 461,908

Airport Reserve $ 57,775 $ 57,775

Sanitation Reserve $ 152,000 $ 152,000

Priority Projects Reserve $ 100,355 $ 100,355

Assets Management Gap Shortfall - $ 1,096,167

The above table shows the required expenditure as an average over the term of the plan as well as the proposed average expenditure as shown in the 2018/19 Long Term Financial Plan.

Council also cash backs reserves for future asset renewal that is outside for this plan particularly for building maintenance, jetty replacement, sanitation, airport and priority projects.


The current renewal expenditure is also reliant upon the assumptions contained within the plan to come to fruition such grant funding and growth assumption.

There are three main options for closing the funding gap, being:• Asset Reduction – reducing the quantity of physical asset that the Shire is responsible for maintaining

and renewing• Service Level Reduction – review the level of service currently on offer. The review would involve the

level of service reducing to meet the available budget• Increase Funding – Increasing the funding to have more dollars available to service the Shire’s assets.

Some asset classes do not have funding gaps such as Waste Management and Airport as these are self funded business units, while Fleet has been fully funded in the Long Term Financial Plan. Although the average of the plan has an asset management gap shortfall, the later years of the plan closes the asset management gap.

3.5. Workforce PlanningThe Workforce Plan details our resources required to deliver the Corporate Business Plan and the strategies to be implemented to address the challenges facing our workforce. The objectives of the Workforce Plan are to identify:

• Internal and external challenges facing our workforce

• Critical skills and positions within the organisation

• Gaps between our current and future workforce

• Strategies to address the gaps in resources, mitigate risks and address the challenges.

Challenges Facing the Workforce• Internal communication within the Shire• Performance management• Training and mentoring• Change management• Attracting and retaining staff in critical positions• Managing and recording knowledge across

the organisation• Improving productivity and efficiency across

the organisation• Managing the responsibilities placed on local

government• Implications of an ageing working and labour

pool

Projected New PositionsTable outlines the projected new positions and their indicative costs

Position Directorate FTE 17/18 Cost 18/19 Cost 19/20 Cost 20/21 Cost

Known Resource Gap

Trainee Technical Officer (Drafting) Asset Management 1 1 $36,000

Plant Operator Asset Management 1 1 $56,943

Indoor Stadium Administration External Services 1 1 $54,462

Project Requirements

Esperance Waste Disposal Facility External Services 2 2 $119,137

Total new positions 5 1 $36,000 1 $56,943 3 $173,599

Total including 16% on cost $41,760 $66,053 $201,375

Positions to be funded from existing allocations 1 1 $66,053

Positions requiring additional municipal funds 4 1 $41,760 3 $201,375


4. Financial Context

4.1. Financial StrategiesA principle aim of long term financial planning is to ensure that the Shire remains financially sustainable. Whilst there are many definitions of sustainability, the definition of financial sustainability can be found in the report entitled National Financial Sustainability Study of Local Government for the Australian Local Government Association is as follows:

“The financial sustainability of a council is determined by its ability to manage expected financial requirements and financial risks and shocks over the long term without the use of disruptive revenue or expenditure measures; which is determined by:

- healthy finances in the current period and long term outlook based on continuation of the council’s present spending and funding policies and given likely economic and demographic developments, and

- ensuring infrastructure renewals/replacement expenditure matches forward looking asset management plan expenditure needs.”

It is important that sound financial strategies and principles are developed and continually reviewed in line with the changing economic and demographic outlook for the Esperance community. These strategies inform the Long Term Financial Plan and determine future financial focus areas for the Shire.

The Shire of Esperance has the following high level financial strategies-

• Maintain strong financial position.

• Work towards achieving an underlying operating surplus within the term of this plan.

• Matching long term expenditure to meet the relevant asset management plans.

• Maintain a sustainable and responsible level of debt.

• Maintain existing operational costs with an additional increase based on the Local Government Cost Index, fair work agreements and the workforce plan.

4.2. Rating StrategyThe rating strategy determined by the Council has a direct impact on our long term financial sustainability and thus the ability to continue the delivery of services to meet the Strategic Community Plan and Corporate Business Plan Requirement. As part of the Long Term Financial Plan process, the Shire of Esperance has entered the proposed budget and amount to be raised by rates which will allow Council to determine if the current rating strategy will meet our needs now and in the future.

When the current rating strategy does not raise enough funds to cover annual expenditure requirements a funding gap is identified. An inability to reduce or eliminate this funding gap can create longer term issues, such as:

• Infrastructure will begin to fail and this will impact on the economic prosperity of the community.

• The Shire of Esperance will start to run out of cash as increasing amounts effort will be required to fund maintenance activities in an attempt to prolong infrastructure life. This will significantly reduce our ability to fund existing and/or new services.


There are essentially only three ways to close a funding gap:

• Reduce the asset base (i.e. rationalise assets)

• Reduce the level of service (however this may not be a long term sustainable strategy).

• Secure more funds via targeting grant fundingand increasing rates.

Increasing rates is ideally a strategy of last resort, nonetheless it is important that prudent rate increases form part of the multi-prong approach to financial management. The Shire has limited control over other funding sources which are often not indexed and can in some instances decline from year to year.

In order to deliver the same level of service, current expenditure levels need to be retained in the longer term. Everything the Shire spends money on (Labour, Plant and Materials) is subject to inflation; often well in excess of the Consumer Price Index (CPI). If CPI increases 2.0% and 50% of the Shire’s revenue is from non-indexed sources, rates need to be increased by double CPI in order to deliver the same level of service as that delivered the previous year.

Hence, critical review of service levels and well considered rate increases are an important aspect of long term financial planning.

The Shire of Esperance currently has a revenue strategy in place to ensure financial sustainability and to meet the agreed community service levels. The strategy which provides high level direction and identifies that rate increases will not be lower than the Local Government Cost Index (LGCI) plus 3% to cater for the asset management gap and the uncertainty of non indexed external funding. The strategy also looks at the use of differential rates to ensure a more equitable rating effort.

4.3. Debt StrategyThe Shire of Esperance currently has a policy position that Council will consider loan funding that is prudent and within guidelines and ratios as identified by the Department of Local Government. Loan funding will be guided by those loans that are proposed in the Long Term Financial Plan. An exception to this is self supporting loans. A number of loans have been proposed throughout the plan to meet the objectives of the Corporate Business Plan.

An Indicative Additional Borrowing Capacity sheet has been included within the Plan to highlight the amount of additional borrowing that the Shire can undertake if required.


4.4. Valuation of Non-Current AssetsOver the past three years the Shire transitioned to “Fair Value” valuation of Non-Current Assets in line with Australian Accounting Standard AASB16.6. At the same time the Shire aims to implement cash backed depreciation so that the Shire’s underlying operating surplus becomes neutral or positive. This approach will align with the Shire’s approach to asset management and help to ensure that the additional amount raised in rates will provide the additional revenue to cash back depreciation and which will also align with the long term.

4.5. Scenario ModellingThe Long Term Financial Plan was developed with the ability for the plan to show different scenarios. The scenario models were based around the different growth models that were developed through the Supertowns planning process. The three models that were developed were based around low, medium and high growth.

During Long Term Plan workshops with the Council lors these different models were run to inform of the best strategy to adopt to meet community expectations should variations occur in a range of factors or assumptions. The model that is presented is the low growth (0.2% growth) model that is more consistent to the growth that Esperance has traditionally experienced. The plan can easily be adapted to higher growth if economic conditions change.

4.6. Sensitivity AnalysisSensitivity Analysis is used to test the financial impact of variations in the factors or assumptions underlying the plan. Analysing the sensitivity of the LTFP to variations such as CPI estimates, employee costs, interest rates, utility charges, rates increases, recurrent grants and others, will indicate those assumptions which have the greatest impact when varied.

The LTFP has the ability to change the assumptions and during the preparation a number of assumptions were tested to determine the optimal solution. This sensitivity analysis showed that small changes to the assumptions can have significant impact on the financial position of the Shire in the longer term. Regular review and refinement of the assumptions is required to ensure the LTFP is relevant and accurate.

The assumptions that have been included in the presented model are further discussed in Item 4.7 Financial Assumptions.


4.7. Financial Assumptions.The assumptions used in the preparation of the Long Term Financial Plan (LTFP) can significantly influence the outcome of the plan. Some information as to the major financial assumptions has been included to provide context around how the plan was developed.

The LTFP has been prepared using a high level grouping of operating income and expenditure accounts based upon a nature and type analysis. The information used was from the 2017/18 Annual Budget. Abnormal and carryover income and expenditure has been excluded from the accounts to form a “baseline” income and expenditure on which growth assumptions can then be calculated.

While the LTFP uses specific assumptions to calculate future years estimated operating income and expenditure it will not remove the need for Council to continue to achieve operational efficiencies.

The LTFP has been prepared on the assumption that the community will grow by 0.2% per annum in both population and rateable income. Note that with any increase in community size will also require an equal and offset expenditure to ensure service levels are maintained across the Shire.

The plan at this point has been based upon a “business as usual” scenario with current service level delivery being maintained. The Corporate Business Plan requires service levels to be reviewed over the next four years which may effect operational expenditure. Where further efficiencies can be achieved, funds will be directed to asset renewal, maintenance or improved service provisions where identified and required.

A cost inflation factor of 2% has been used throughout the LTFP in line with the current Local Government Cost Index (LGCI) .

Due to growth factors being used within the plan and the benefit of integrated documentation such as the Corporate Business Plan and Workforce Plan the first 4 years of the LTFP are considered to be more accurate and reliable than the later years of the LTFP.

The following information explains the major financial assumptions applicable to the Long Term Financial Plan.

Employment ExpensesIncreases in employment expenses have three main elements. These are

1. Increases contained in the enterprise agreement

2. Increases and movements of levels within the current workforce and;

3. Additional positions that are required to meet the strategic direction of the Council and the growth of the community.

Employee costs are estimated to increase by 2.75% for the term of the plan. Renegotiated Enterprise Agreements will have a significant effect on this figure in future years as the current EBA expires in 2019. Note that this increase is reflective of the Shires contribution to employment expenses and does not take into account any increases or decreases in fully funded positions such as Homecare.


Materials and ContractsIncreases in Materials and contracts are in line with the Local Government Cost Index of 2% plus an additional 0.2% to take into account the estimated growth in the Shire of Esperance.

Utility ChargesThe plan has factored in increases of 3% for the life of the plan, except in the 2022/23 year where 8% has been used to cater for expected gas costs for the Bay of Isles Leisure Centre to be realised. The Shire is currently working on utility efficiencies such as LED Streetlights and solar power for high energy use buildings.

Loan Borrowings and RepaymentsLoan repayments are calculated on loan schedules that are currently in existence and the estimation of any future loan borrowings. The LTFP has proposed loan borrowings of $4m for a new waste facility and $2.4m for a future stage of Flinders Estate. The existing short term borrowings for Flinders Estate is repaid in line with sales of the Flinders land. The loan will be repaid before any surplus funds are placed into the land development reserve.

Reserve TransfersTransfer to Reserves are in line with existing reserve calculations that are contained within the 2017/18 budget and increased by 2% to take into account inflation factors. In areas such as the airport or waste management these transfers could change if their net operating results changed. Continual scrutiny and review of the fees being charged in these areas are essential to ensure sufficient money is being captured in the reserves to pay for large capital expenditure in future years. Interest on Reserve holdings has been calculated at 2.5% and reinvested into the reserve.

Rate RevenueRate yield increases are forecast at 4.5% for 2018/19 and for the following 5 years of the plan until it will decrease to 3% for the balance of the plan. It is estimated that the additional income that is generated that is higher than normal operational requirements will be spent on closing the asset management gap that the Shire currently has. Council has a revenue strategy that has recommendations regarding future rate increases to assist in closing the asset management gap specifically within the transport area.

Operating GrantsAn increase of 2% has been allowed for in the LTFP. Although this funding source is somewhat unknown as politcal and economic factors can influence any increases that the different levels of government may offer a small increase has been assumed to cater for general inflation increases.


Fees and Charges

Fees and Charges that Council has discretion over has been increased by 3% per annum for term of the LTFP.

Proceeds from Sale of AssetsProceeds from Sale of Assets are those relating to plant changeovers and land sales and are representative of estimated sale prices .

Capital GrantsRoads grants from the Regional Roads Group have been estimated at the existing levels, averaged from the past two years. Regional Road Group is a competitive process and application has to be made each year for specific projects, the allocations can therefore fluctuate significantly. Roads to Recovery grants have been maintained for the life of this plan.

A large number of the capital projects are reliant upon grants from external sources. If the funding from these sources does not eventuate the projects may need to be reviewed or alternate funding sourced.

Capital ExpenditureCapital Expenditure is in line with existing Asset Management Plans and has been increased by 2% in line with expected inflation figures- the asset management plans that were used in the development of the Plan has been Fleet, Footpaths, Drainage, Playgrounds, Waste and Airport.

Road expenditure is in line with existing annual allocations and increased by 2% in line with expected inflation. Additional expenditure is expected to be increased over the life of the plan to help address the asset management gap in the transport area and more specifically rural road re-sheeting.

The 10 year capital works program has been developed in two formats showing both a source of funding format and also whether the asset is renewal, upgrade or new. As identified in the capital grants section a number of key infrastructure projects are heavily reliant upon external grant funds. If external funding from these projects does not eventuate to the amounts as indicated in the plan then the scope of each capital project will need to be revisited or the project postponed until further funding is sourced.


5. Financial ProjectionsThe financial projections in this Long Term Financial Plan have been developed in a format that conforms to the Local Government (Financial Management) Regulations 1996 and Australian Accounting Standards. This format has been chosen as it allows projections to feed into the statutory format of the Annual Budget and key performance measures in the Plan to be compared with Annual Budgets and Annual Financial Reports. The Statutory schedules include:

• Statement of Financial Position (Balance Sheet) and Equity Statement

• Statement of Comprehensive Income

• Statement of Cash Flows

• Rate Setting Statement

The Statement of Comprehensive Income shows what is expected to happen during the year in terms of revenue, expenses and other adjustments from all activities. Large deficiits are expected in the initial years due mainly to the increase in depreciation from revaluation of infrastructure and large one off operating expenditure that impact the statement. Rates increases will decrease this deficit position with an aim of a balanced position within the term of the plan.

The Statement of Financial Position is a snap-shot of the expected financial position of the Shire at the end of the financial year. It reports what is expected to be owned (assets) and what is expected to be owed (liabilities). The bottom line “Net Assets” represents the net worth of the Council. The assets and liabilities are separated into current and non-current. Current means those assets or liabilities which will fall due in the next 12 months. Non-current refers to assets and liabilities that are recoverable or which fall due over a longer period than 12 months.

The Statement of Cash Flows shows what is expected to happen during the year in terms of cash. The net cash provided by operating activities shows how much cash is expected to remain after paying for the services provided to the community. This can be used to fund other activities such as capital works and infrastructure. The information in this statement assists in the assessment of the ability to generate cash flows and meet financial commitments as they fall due, including debt repayments.

The format of the Rate Setting Statement varies from the format of the statements prepared in Annual Budgets. In Annual Budgets, the bottom line of the statement is the amount to be made up from rates. In the LTFP, rates assessed in accordance with relevant assumptions has been shown as a revenue stream with all other sources of revenue, so that if a surplus results, this can be used to fund other services. However, where a shortfall results, this indicates that the Council is unable to fund the services proposed at the planned rating levels and may need to defer works or services, increase debt or increase rates even further to cover the cost of planned service provision. In the LTFP the Rate Setting Statement shows the accumulated surplus carried forward at the end of each year.

The statements are supported by schedules of:

• Assumptions used in the Long Term Financial Plan

• Calculations and measurement of Key Performance Indicators

• Capital works

• Cash reserves

• Loan borrowings and repayments


Projections & Calculations

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

Use CPI for everything? FALSE Medium Medium Medium Medium High Medium Custom Custom Custom

Rates - Annual Yield Increases 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 3.0% 3.0% 3.0%Operating Grants, Subsidies and Contributions 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%Non-operating Grants, Subsidies, Contributions 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%Fees and Charges 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%Service Charges 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%Interest Earnings 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%Other revenue 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%

Employee Costs 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75%Materials and Contracts 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%Utility Charges 3.0% 3.0% 3.0% 3.0% 8.0% 3.0% 3.0% 3.0% 3.0%Depreciation on Non-current Assets (see below) 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%Interest Expense (based on estimated borrowings) 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%Insurance Expense 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%Other Expenditure 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%

Expected Growth in Shire 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2%

FCWP Capital Projects to be escalated manually

Shire of Esperance Long Term Financial Plan 2017/2018 - 2026/2027Variable Assumptions Underpinning the Plan

CAPITAL ASSETS

OPERATING EXPENSES

OPERATING REVENUES

GROWTH

2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027$0s $0s $0s $0s $0s $0s $0s $0s $0s $0s

OPERATING SURPLUS RATIO38,772,108 40,120,688 41,532,412 43,042,111 44,575,010 46,283,437 47,890,803 49,241,648 50,780,207 52,338,764

Less Operating Exp incl interest & depreciation (40,834,430) (43,704,127) (47,107,307) (45,515,984) (47,146,255) (48,149,265) (49,451,973) (51,240,429) (52,243,777) (53,015,475) (2,062,322) (3,583,439) (5,574,894) (2,473,873) (2,571,245) (1,865,828) (1,561,170) (1,998,781) (1,463,570) (676,711) 30,132,978 31,979,626 33,220,529 34,555,990 35,911,167 37,438,317 38,585,781 40,023,025 40,969,211 42,331,549

-6.84% -11.21% -16.78% -7.16% -7.16% -4.98% -4.05% -4.99% -3.57% -1.60%

CURRENT RATIO23,724,517 22,106,167 22,061,294 20,474,186 23,414,213 19,626,184 18,364,161 22,982,065 26,628,541 30,589,460

Less Restricted Assets (19,491,200) (17,848,145) (17,792,550) (16,234,030) (19,161,898) (15,404,113) (14,139,017) (18,732,981) (22,427,219) (26,376,656) = Net Current Assets 4,233,317 4,258,022 4,268,743 4,240,156 4,252,315 4,222,071 4,225,143 4,249,085 4,201,322 4,212,804

4,232,005 4,232,005 4,232,005 4,232,005 4,232,005 4,232,005 4,232,005 4,232,005 4,232,005 4,232,005 (1,202,516) (1,232,579) (1,263,393) (1,294,978) (1,327,353) (1,360,536) (1,394,550) (1,429,414) (1,465,149) (1,501,778) 3,029,489 2,999,426 2,968,612 2,937,027 2,904,652 2,871,469 2,837,455 2,802,591 2,766,856 2,730,227

Ratio Target > or = to 1:1 1.40 1.42 1.44 1.44 1.46 1.47 1.49 1.52 1.52 1.54

1,202,516 1,232,579 1,263,393 1,294,978 1,327,353 1,360,536 1,394,550 1,429,414 1,465,149 1,501,778

RATES COVERAGE RATIO19,624,021 20,546,350 21,511,950 22,522,930 23,581,421 24,689,658 25,849,978 26,677,079 27,530,642 28,411,516

Divided by Total Expenses 40,834,430 43,704,127 47,107,307 45,515,984 47,146,255 48,149,265 49,451,973 51,240,429 52,243,777 53,015,475

Ratio Target > or = to 40% 48.1% 47.0% 45.7% 49.5% 50.0% 51.3% 52.3% 52.1% 52.7% 53.6%

DEBT SERVICE COVERAGE RATIO

= Operating Revenue 38,772,108 40,120,688 41,532,412 43,042,111 44,575,010 46,283,437 47,890,803 49,241,648 50,780,207 52,338,764 Less Operating Expenses (40,834,430) (43,704,127) (47,107,307) (45,515,984) (47,146,255) (48,149,265) (49,451,973) (51,240,429) (52,243,777) (53,015,475) Except Interest Expense and Depreciation 15,106,764 16,892,875 17,562,353 17,606,413 18,411,466 18,631,724 19,055,676 20,093,160 20,177,152 20,156,186 = OSBID 13,044,442 13,309,436 11,987,459 15,132,540 15,840,221 16,765,896 17,494,506 18,094,379 18,713,582 19,479,474 Divided by Principal and Interest 575,003 1,193,205 1,697,097 1,630,514 864,203 581,469 574,622 573,900 573,288 572,646

Ratio Target > or = to 2 23 11 7 9 18 29 30 32 33 34

Divided by Own Source Revenue

Assume Provision same as Leave Cash Reserve

Shire of Esperance Long Term Financial Plan 2017/2018 - 2026/2027Key Performance Indicators

Ratios as per Regulation 50 of the Local Government (Finacial Management) Regulations 1996**

Operating Revenue

= Net Operating Surplus

Current Assets

Ratio Target > or = 0.01

Total Rates Revenue

Divided by Current Liabilities less

= Net Current Liabilities

Operating Surplus before Interest & Depreciation

Current Liabilities ass'd with Restricted Assets

2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027$0s $0s $0s $0s $0s $0s $0s $0s $0s $0s

Shire of Esperance Long Term Financial Plan 2017/2018 - 2026/2027Key Performance Indicators

Ratios as per Regulation 50 of the Local Government (Finacial Management) Regulations 1996**

ASSET SUSTAINABILITY RATIO23,080,240 15,283,329 13,197,062 13,255,269 14,734,830 17,740,981 21,171,277 15,719,421 16,320,661 16,787,150

Divided by Depreciation Expense 14,993,065 16,746,870 17,144,795 17,228,522 18,073,087 18,308,037 18,746,262 19,798,829 19,898,527 19,879,666


ASSET CONSUMPTION RATIO475,365,381 506,967,411 514,060,203 516,278,154 538,557,764 550,479,040 559,165,621 583,065,913 586,134,473 585,538,253

Divided by Current Replacement Cost 569,104,917 583,720,088 592,830,934 624,287,271 631,125,831 641,291,719 675,746,257 683,206,901 686,535,301 717,825,457


New Assets Acquired at Cost 5,870,671 580,390,593 592,830,934 600,337,661 627,362,269 641,291,719 649,515,330 679,030,774 686,535,301 689,917,761 Fair Value Revaluation (6% - 3-yearly) 22,967,684 3,329,495 - 23,949,611 3,763,561 - 26,230,927 4,176,127 - 27,907,696 Current Replacement Cost of Assets 569,104,917 583,720,088 592,830,934 624,287,271 631,125,831 641,291,719 675,746,257 683,206,901 686,535,301 717,825,457

ASSET RENEWAL FUNDING RATIO**23,080,240 15,283,329 13,197,062 13,255,269 14,734,830 17,740,981 21,171,277 15,719,421 16,320,661 16,787,150

Renewal Demand (From Asset Mgmt Plans) 16,295,351 15,271,646 15,775,810 15,590,254 16,764,124 15,946,391 16,644,527 16,060,756 16,383,381 16,352,055


OWN SOURCE REVENUE COVERAGE RATIO Own Source Operating Revenue 30,132,978 31,979,626 33,220,529 34,555,990 35,911,167 37,438,317 38,585,781 40,023,025 40,969,211 42,331,549 Divided by Operating Expense (40,785,133) (43,657,910) (47,065,887) (45,479,154) (47,113,328) (48,119,849) (49,425,053) (51,216,152) (52,222,161) (52,995,601)

Ratio Target >40% 73.9% 73% 71% 76% 76% 78% 78% 78% 78% 80%

** Asset Renewal Funding Ratio as been modified from the Ratio set out in Reg 50 of the LG(Financial Management) Regs 1996 until DLG release guidance note on calculation

Note that the divisor in the Operating Surplus Ratio is Rates Revenue. However, this is currently under review and the ratio is likely to change to also include fees and charges and other revenue generated by the efforts of a local government.

Capital Investment on Renewal

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

Capital Renewal Expenditure

2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027-6.84% -11.21% -16.78% -7.16% -7.16% -4.98% -4.05% -4.99% -3.57% -1.60%

2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/20271.40 1.42 1.44 1.44 1.46 1.47 1.49 1.52 1.52 1.54

1.30

1.35

1.40

1.45

1.50

1.55

1.60

2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027

CURRENT RATIO

CURRENT RATIO

-18.00%

-16.00%

-14.00%

-12.00%

-10.00%

-8.00%

-6.00%

-4.00%

-2.00%

0.00%2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027

OPERATING SURPLUS RATIO

OPERATING SURPLUS RATIO

2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/202748.1% 47.0% 45.7% 49.5% 50.0% 51.3% 52.3% 52.1% 52.7% 53.6%

2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/202723 11 7 9 18 29 30 32 33 34

40.0%

42.0%

44.0%

46.0%

48.0%

50.0%

52.0%

54.0%

56.0%

2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027

RATES COVERAGE RATIO

RATES COVERAGE RATIO

0

5

10

15

20

25

30

35

40

2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027



2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027153.9% 91.3% 77.0% 76.9% 81.5% 96.9% 112.9% 79.4% 82.0% 84.4%

2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/202783.5% 86.9% 86.7% 82.7% 85.3% 85.8% 82.7% 85.3% 85.4% 81.6%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

140.0%

160.0%

180.0%

2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027

ASSET SUSTAINABILITY RATIO

ASSET SUSTAINABILITY RATIO

78.0%79.0%80.0%81.0%82.0%83.0%84.0%85.0%86.0%87.0%88.0%

2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027

ASSET CONSUMPTION RATIO

ASSET CONSUMPTION RATIO

2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027141.6% 100.1% 83.7% 85.0% 87.9% 111.3% 127.2% 97.9% 99.6% 102.7%

2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/202773.9% 73.3% 70.6% 76.0% 76.2% 77.8% 78.1% 78.1% 78.5% 79.9%

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

120.0%

140.0%

160.0%

2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027

ASSET RENEWAL FUNDING RATIO

ASSET RENEWAL FUNDING RATIO

64.0%

66.0%

68.0%

70.0%

72.0%

74.0%

76.0%

78.0%

80.0%

82.0%

2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027

OWN SOURCE REVENUE COVERAGE RATIO

OWN SOURCE REVENUE…

2017/2018 Adj. 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027$0s $0s $0s $0s $0s $0s $0s $0s $0s $0s $0s

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

19,624,021 19,624,021 20,507,102 21,470,936 22,479,988 23,536,461 24,642,585 25,800,693 26,625,477 27,477,391 28,356,561 Rates Growth - - 39,248 41,014 42,942 44,960 47,073 49,285 51,601 53,251 54,955

6,851,557 8,373,590 8,541,062 8,711,883 8,886,121 9,063,843 9,245,120 9,430,022 9,618,623 9,810,995 10,007,215 9,221,172 9,221,172 9,497,807 9,782,741 10,076,224 10,378,510 10,689,866 11,010,562 11,340,878 11,681,105 12,031,538

- - - - - - - - - - - 369,300 369,300 380,379 391,790 403,544 415,650 428,120 440,964 454,192 467,818 481,853

Interest Earnings- Reserve 535,666 535,666 487,280 446,204 444,814 405,851 479,047 385,103 353,475 468,325 560,680 One off income Type 1 - - - - - - - - - - - One off income Type 2 - - - - - - - - - - -

662,984 648,359 667,810 687,844 708,479 729,734 751,626 774,175 797,400 821,322 845,961 37,264,700 38,772,108 40,120,688 41,532,412 43,042,111 44,575,010 46,283,437 47,890,803 49,241,648 50,780,207 52,338,764

EXPENDITURE: EXPENSES FROM ORDINARY ACTIVITIESEXCLUDING LOSS ON ASSET DISPOSAL

(14,870,256) (14,870,256) (15,308,929) (15,760,542) (16,225,478) (16,704,130) (17,196,901) (17,704,210) (18,226,484) (18,764,165) (19,317,708) (15,112,544) (8,513,639) (8,700,939) (8,892,360) (9,087,992) (9,287,927) (9,492,262) (9,701,092) (9,914,516) (10,132,635) (10,355,553)

(1,158,676) (1,158,676) (1,193,436) (1,229,239) (1,266,117) (1,304,100) (1,408,428) (1,450,681) (1,494,201) (1,539,027) (1,585,198) (685,777) (685,777) (706,350) (727,541) (749,367) (771,848) (795,003) (818,854) (843,419) (868,722) (894,783)

(1,218,080) (499,318) (514,298) (529,726) (545,618) (561,987) (578,846) (596,212) (614,098) (632,521) (651,497) (113,699) (113,699) (146,005) (417,559) (377,890) (338,380) (323,687) (309,414) (294,331) (278,625) (276,520)

One off expenditure - Labour - - - - - - - - - - One off expenditure - Contracts & Materials - (378,300) (2,405,545) (35,000) (104,797) (46,100) (125,249) (54,550) (129,554) (54,550) One off expenditure - Other - (9,000) - - - - - - - -

(14,993,065) (14,993,065) (16,746,870) (17,144,795) (17,228,522) (18,073,087) (18,308,037) (18,746,262) (19,798,829) (19,898,527) (19,879,666) (48,152,097) (40,834,430) (43,704,127) (47,107,307) (45,515,984) (47,146,255) (48,149,265) (49,451,973) (51,240,429) (52,243,777) (53,015,475)

(10,887,397) (2,062,322) (3,583,439) (5,574,894) (2,473,873) (2,571,245) (1,865,828) (1,561,170) (1,998,781) (1,463,570) (676,711)

10,155,772 10,155,772 11,164,739 3,838,671 3,873,240 3,908,501 6,050,232 9,086,917 4,124,337 4,253,461 4,292,392 (265,540) (265,540) 400,000 400,000 400,000 400,000 400,000 125,000 400,000 - -

- - - - - - - - - - - 9,890,232 9,890,232 11,564,739 4,238,671 4,273,240 4,308,501 6,450,232 9,211,917 4,524,337 4,253,461 4,292,392

(997,165) 7,827,910 7,981,300 (1,336,223) 1,799,367 1,737,256 4,584,404 7,650,747 2,525,556 2,789,891 3,615,681

- - - - - - - - - - - Total Other Comprehensive Income/ Expenses - - - - - - - - - - -

TOTAL COMPREHENSIVE INCOME (997,165) 7,827,910 7,981,300 (1,336,223) 1,799,367 1,737,256 4,584,404 7,650,747 2,525,556 2,789,891 3,615,681

Materials & ContractsEmployee Costs

Other Comprehensive Income/ ExpensesImpairment of Assets Expense

Utilities

Sub-total

Total Expenditure

Non-Operating Grants, Subsidies & Contributions

Loss on Asset Disposals

NET RESULT

Sub-total

Profit on Asset Disposals

Interest Expenses

InsuranceOther Expenditure

Depreciation

Shire of Esperance Long Term Financial Plan 2017/2018 - 2026/2027

Operating Grants, Subsidies & Contributions

Interest Earnings

Other RevenueTotal Revenue

Fees & ChargesService Charges

Statement of Projected Comprehensive Income by Nature and Type

Rates

2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027$0s $0s $0s $0s $0s $0s $0s $0s $0s $0s

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

297,675 320,489 331,766 343,826 356,071 369,718 382,558 393,348 405,639 418,088 22,817,667 24,566,426 25,430,844 26,355,252 27,293,866 28,339,959 29,324,170 30,151,310 31,093,390 32,047,715

1,002,708 1,079,556 1,117,542 1,158,165 1,199,412 1,245,382 1,288,632 1,324,980 1,366,379 1,408,317 Health 61,250 65,944 68,265 70,746 73,266 76,074 78,716 80,936 83,465 86,026 Education and Welfare 3,112,071 3,350,582 3,468,479 3,594,557 3,722,574 3,865,249 3,999,484 4,112,297 4,240,786 4,370,945 Housing - - - - - - - - - - Community Amenities 4,456,718 4,798,283 4,967,120 5,147,675 5,331,004 5,535,325 5,727,560 5,889,116 6,073,122 6,259,519 Recreation and Culture 1,878,669 2,022,651 2,093,822 2,169,932 2,247,212 2,333,341 2,414,375 2,482,477 2,560,042 2,638,615

1,468,957 1,581,539 1,637,188 1,696,700 1,757,126 1,824,471 1,887,833 1,941,083 2,001,732 2,063,170 1,644,834 1,770,895 1,833,207 1,899,844 1,967,505 2,042,914 2,113,862 2,173,487 2,241,398 2,310,191

524,151 564,322 584,179 605,414 626,975 651,005 673,614 692,614 714,255 736,177 37,264,700 40,120,688 41,532,412 43,042,111 44,575,010 46,283,437 47,890,803 49,241,648 50,780,207 52,338,764

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

(2,285,471) (2,079,264) (2,241,173) (2,165,465) (2,243,026) (2,290,746) (2,352,723) (2,437,811) (2,485,546) (2,522,260) (392,460) (357,050) (384,853) (371,853) (385,171) (393,366) (404,009) (418,620) (426,817) (433,121)

(1,624,780) (1,478,184) (1,593,288) (1,539,466) (1,594,605) (1,628,530) (1,672,591) (1,733,081) (1,767,017) (1,793,117) Health (402,334) (366,033) (394,536) (381,208) (394,862) (403,263) (414,173) (429,152) (437,555) (444,018) Education and Welfare (3,920,920) (3,567,154) (3,844,924) (3,715,039) (3,848,103) (3,929,969) (4,036,297) (4,182,271) (4,264,165) (4,327,152) Housing - - - - - - - - - - Community Amenities (7,080,413) (6,441,582) (6,703,179) (6,474,866) (6,721,759) (6,876,598) (7,076,029) (7,347,500) (7,503,718) (7,617,459) Recreation and Culture (12,771,974) (11,530,604) (12,441,601) (12,024,561) (12,463,423) (12,735,187) (13,085,685) (13,565,546) (13,836,710) (14,043,622)

(15,528,497) (14,127,436) (15,227,520) (14,713,122) (15,240,110) (15,564,335) (15,985,438) (16,563,559) (16,887,893) (17,137,346) (3,070,181) (2,793,173) (3,010,674) (2,908,971) (3,013,163) (3,077,267) (3,160,524) (3,274,826) (3,338,951) (3,388,271)

(961,368) (817,640) (847,999) (843,543) (903,651) (926,319) (955,091) (993,732) (1,016,780) (1,032,589) (48,038,398) (43,558,122) (46,689,748) (45,138,094) (46,807,875) (47,825,578) (49,142,558) (50,946,097) (51,965,151) (52,738,956)

(10,773,698) (3,437,434) (5,157,336) (2,095,983) (2,232,866) (1,542,141) (1,251,755) (1,704,449) (1,184,945) (400,192)

FINANCE COSTSGovernance - - - - - - - - - - Law, Order, Public Safety - - - - - - - - - - Health - - - - - - - - - - Education and Welfare - - - - - - - - - - Community Amenities - - (240,000) (233,767) (227,160) (220,156) (212,732) (204,863) (196,529) (196,529) Recreation and Culture (49,297) (89,016) (82,823) (76,779) (71,357) (66,263) (62,117) (57,752) (53,349) (51,608) Transport - - - - - - - - - - Economic Services - - - - - - - - - -

(64,402) (56,988) (94,735) (67,345) (39,863) (37,268) (34,566) (31,717) (28,748) (28,383) (113,699) (146,005) (417,559) (377,890) (338,380) (323,687) (309,414) (294,331) (278,625) (276,520)

TransportEconomic ServicesOther Property and Services

Net Result from Operating Activities

Sub-totalOther Property and Services


Governance

Total Expenditure

General Purpose FundingLaw, Order, Public Safety

Law, Order, Public Safety

Statement of Projected Comprehensive Income by Program

TransportEconomic Services

Governance

Other Property and ServicesTotal Revenue

General Purpose Funding

2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027$0s $0s $0s $0s $0s $0s $0s $0s $0s $0s

Shire of Esperance Long Term Financial Plan 2017/2018 - 2026/2027 Statement of Projected Comprehensive Income by Program

NON-OPERATING GRANTS, SUBSIDIES, CONTRIBUTIONS62,918 700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000 700,000

Education & Welfare - 300,000 - - - - - - - - Community Amenities - - - - - - - - Recreation and Culture - 6,231,917 - - - 5,000,000 - - Transport 4,558,922 3,932,822 3,138,671 3,173,240 3,208,501 5,350,232 3,386,917 3,424,337 3,553,461 3,592,392

5,513,932 - - - - - - - - - Other Property and Services 20,000

10,155,772 11,164,739 3,838,671 3,873,240 3,908,501 6,050,232 9,086,917 4,124,337 4,253,461 4,292,392

PROFIT / (LOSS) ON DISPOSAL OF ASSETS(34,562) - - - - - - - - -

- - - - - - - - - - (10,500) - - - - - - - - -

Health (12,475) - - - - - - - - - Education and Welfare (15,521) - - - - - - - - - Housing - - - - - - - - - - Community Amenities (51,298) - - - - - - - - - Recreation and Culture (15,345) - - - - - (275,000) - - -

(276,700) - - - - - - - - - - - - - - - - - - -

150,861 400,000 400,000 400,000 400,000 400,000 400,000 400,000 - - (265,540) 400,000 400,000 400,000 400,000 400,000 125,000 400,000 - -

(997,165) 7,981,300 (1,336,223) 1,799,367 1,737,256 4,584,404 7,650,747 2,525,556 2,789,891 3,615,681

OTHER COMPREHENSIVE INCOME- - - - - - - - - -

Total Other Comprehensive Income - - - - - - - - - -

TOTAL COMPREHENSIVE INCOME (997,165) 7,981,300 (1,336,223) 1,799,367 1,737,256 4,584,404 7,650,747 2,525,556 2,789,891 3,615,681

TransportEconomic Services

Changes in Valuation of non-current assets

NET RESULT

Other Property and ServicesSub-total

General Purpose FundingLaw, Order, Public Safety

Sub-total

Governance

Law, Order, Public Safety

Economic Services

2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027$0s $0s $0s $0s $0s $0s $0s $0s $0s $0s

19,624,021 20,546,350 21,511,950 22,522,930 23,581,421 24,689,658 25,849,978 26,677,079 27,530,642 28,411,516 6,851,557 8,541,062 8,711,883 8,886,121 9,063,843 9,245,120 9,430,022 9,618,623 9,810,995 10,007,215 9,221,172 9,497,807 9,782,741 10,076,224 10,378,510 10,689,866 11,010,562 11,340,878 11,681,105 12,031,538

Service Charges - - - - - - - - - - 904,966 867,659 837,994 848,358 821,501 907,167 826,066 807,668 936,143 1,042,533

One off income Type 1 - - - - - - - - - - One off income Type 2 - - - - - - - - - - Goods and Services Tax 3,400,000 3,400,000 3,400,000 3,400,000 3,400,000 3,400,000 3,400,000 3,400,000 3,400,000 3,400,000 Other Revenue 662,984 667,810 687,844 708,479 729,734 751,626 774,175 797,400 821,322 845,961 Net Movement Receivables - - - - - - - - - -

40,664,700 43,520,688 44,932,412 46,442,111 47,975,010 49,683,437 51,290,803 52,641,648 54,180,207 55,738,764

(14,964,819) (15,308,929) (15,760,542) (16,225,478) (16,704,130) (17,196,901) (17,704,210) (18,226,484) (18,764,165) (19,317,708) (14,823,983) (8,700,939) (8,892,360) (9,087,992) (9,287,927) (9,492,262) (9,701,092) (9,914,516) (10,132,635) (10,355,553)

(1,158,676) (1,193,436) (1,229,239) (1,266,117) (1,304,100) (1,408,428) (1,450,681) (1,494,201) (1,539,027) (1,585,198) (685,777) (706,350) (727,541) (749,367) (771,848) (795,003) (818,854) (843,419) (868,722) (894,783) (113,699) (146,005) (417,559) (377,890) (338,380) (323,687) (309,414) (294,331) (278,625) (276,520)

(3,400,000) (3,400,000) (3,400,000) (3,400,000) (3,400,000) (3,400,000) (3,400,000) (3,400,000) (3,400,000) (3,400,000) (1,218,080) (514,298) (529,726) (545,618) (561,987) (578,846) (596,212) (614,098) (632,521) (651,497)

One off expenditure - Labour - - - - - - - - - - One off expenditure - Contracts & Materials - (378,300) (2,405,545) (35,000) (104,797) (46,100) (125,249) (54,550) (129,554) (54,550) One off expenditure - Other - (9,000) - - - - - - - - Net Movement Payables 5,000 - - - - - - - - -

(36,360,034) (30,357,257) (33,362,512) (31,687,462) (32,473,169) (33,241,228) (34,105,711) (34,841,600) (35,745,250) (36,535,809)

4,304,666 13,163,431 11,569,900 14,754,649 15,501,841 16,442,209 17,185,092 17,800,048 18,434,957 19,202,955

Insurance

Other Expenditure

Net Cash Provided by (Used in) Operating Activities

Sub-total

Goods and Services TaxInterest Paid on Loans

Utilities (gas, electricity, water, etc.)


Operating Grants, Subsidies & ContributionsFees & Charges

Interest Earnings

Materials & Contracts

Statement of Projected Cash Flows

Rates

CASH FLOWS FROM OPERATING ACTIVITIESRECEIPTS

Sub-total

Employee CostsPAYMENTS

2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027$0s $0s $0s $0s $0s $0s $0s $0s $0s $0s

Shire of Esperance Long Term Financial Plan 2017/2018 - 2026/2027Statement of Projected Cash Flows

(22,000) - - - - - - - - - (860,000) - (2,188,388) - - - - - - - (623,149) (9,677,398) (250,000) (500,000) - - (10,000,000) - - -

Payments for Furniture and Equipment (114,092) (104,643) (123,792) (136,006) (105,786) (116,635) (109,054) (147,546) (122,257) (131,502) Payments for Plant & Equipment (4,033,588) (3,009,883) (3,514,047) (3,328,491) (4,502,361) (3,684,628) (4,382,764) (3,798,993) (4,121,618) (4,090,292) Payments for Plant & Equipment - Under Lease - - - - - - - - - - Payments for Intagibles - - - - - - - - - - Payments for Infrastructure - Roads (Formation Only) - - - - - - - - - - Payments for Infrastructure - Roads (Ex Formation) (13,880,280) (10,882,904) (10,665,821) (11,522,033) (11,987,511) (12,512,441) (12,984,370) (13,111,138) (13,237,999) (13,759,284) Payments for Infrastructure - Bridges - - - - - - - - - - Payments for Infrastructure - Drainage (250,535) (571,000) (595,000) (612,000) (631,000) (650,000) (670,000) (689,000) (702,780) (716,836) Payments for Infrastructure - Parks, Gardens and Reserves (1,956,053) (1,432,188) (418,826) (513,891) (429,108) (784,481) (1,090,016) (1,093,816) (1,097,693) (1,101,647) Payments for Infrastructure - Footpaths and Cycleways (686,350) (150,000) (192,353) - - - - - (200,000) (200,000) Payments for Infrastructure - Airports (Fromation Only) - - - - - - - - - - Payments for Infrastructure - Airports (Ex Formation) (98,050) - (214,464) - - (10,000,000) - - - - Payments for Infrastructure - Sewerage - - - - - - - - - - Payments for Infrastructure - Other (6,426,814) (740,988) (4,145,218) (4,149,574) (154,062) (158,684) (158,684) - (166,714) (170,049)

- - - - - - - - - Grants / Contributions for the Development of Assets 10,155,772 11,164,739 3,838,671 3,873,240 3,908,501 6,050,232 9,086,917 4,124,337 4,253,461 4,292,392 Proceeds from Sale of Assets 1,212,249 1,587,788 1,799,817 1,715,522 1,806,742 1,841,118 2,087,045 1,772,299 858,101 886,164 Net Movement Non Current Receivables - - - - - - - - - Net Movement Non Current Payables - - - - - - - - - -

(17,582,890) (13,816,477) (16,669,421) (15,173,233) (12,094,585) (20,015,519) (18,220,926) (12,943,857) (14,537,499) (14,991,054)

1,860,000 10,000 6,238,388 25,000 - - - - - - 69,385 71,897 95,797 59,100 58,594 43,063 39,019 41,283 43,681 45,145

(461,304) (1,047,201) (1,279,538) (1,252,624) (525,823) (257,782) (265,208) (279,569) (294,663) (296,127) 1,468,081 (965,304) 5,054,647 (1,168,524) (467,229) (214,719) (226,189) (238,286) (250,982) (250,982)

(11,810,143) (1,618,350) (44,874) (1,587,108) 2,940,027 (3,788,029) (1,262,023) 4,617,905 3,646,476 3,960,919 32,254,642 20,444,499 18,826,149 18,781,276 17,194,168 20,134,195 16,346,166 15,084,143 19,702,047 23,348,523 20,444,499 18,826,149 18,781,276 17,194,168 20,134,195 16,346,166 15,084,143 19,702,047 23,348,523 27,309,442 Cash at the End of Year

Net Cash Provided by (Used in) Financing Activities

Net Cash Provided by (Used in) Investing Activities

Cash at Beginning of Year

Payments on Loans

Proceeds from LoansCASH FLOWS FROM FINANCING ACTIVITIES

NET INCREASE (DECREASE) IN CASH HELD

Proceeds from Self Supporting Loans

Payments for Investment Property

Advances to Community Groups / Third Parties

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for Buildings

Payments for Land

2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027$0s $0s $0s $0s $0s $0s $0s $0s $0s $0s

ASSETSCURRENT ASSETS

Cash and Cash Equivalents 32,254,642 20,444,499 18,826,149 18,781,276 17,194,168 20,134,195 16,346,166 15,084,143 19,702,047 23,348,523 27,309,442 Receivables 3,042,890 3,047,188 3,047,188 3,047,188 3,047,188 3,047,188 3,047,188 3,047,188 3,047,188 3,047,188 3,047,188 Inventories 398,886 232,830 232,830 232,830 232,830 232,830 232,830 232,830 232,830 232,830 232,830 GST Receivable - - - - - - - - - - -

Total Current Assets 35,696,418 23,724,517 22,106,167 22,061,294 20,474,186 23,414,213 19,626,184 18,364,161 22,982,065 26,628,541 30,589,460

NON-CURRENT ASSETSReceivables 885,021 885,021 885,021 885,021 885,021 885,021 885,021 885,021 885,021 885,021 885,021 Land 25,369,500 25,391,500 25,391,500 25,391,500 25,391,500 25,391,500 25,391,500 25,391,500 25,391,500 25,391,500 25,391,500 Investment Property 5,935,559 6,620,559 6,020,559 7,608,947 7,008,947 6,408,947 5,808,947 5,208,947 4,608,947 4,608,947 4,608,947 Buildings 56,824,695 55,491,583 66,491,335 64,449,788 62,726,024 64,330,163 62,115,517 69,602,113 71,382,100 68,924,683 66,551,864 Furniture and Equipment 426,563 442,162 441,222 459,010 484,497 474,887 477,983 473,036 506,440 507,686 517,580 Plant and Equipment 14,832,358 15,828,772 16,299,639 16,990,777 17,506,022 19,004,539 19,502,979 20,372,073 20,889,976 21,573,389 22,118,543 Plant and Equipment - Under Lease - - - - - - - - - - Intangibles - - - - - - - - - - Infrastructure - Roads (Formation Only) - - - - - - - - - - Infrastructure - Roads (Ex Formation) 297,512,770 321,538,723 323,038,759 324,281,766 345,789,988 347,682,897 350,038,916 373,794,844 375,991,655 378,250,473 403,653,333 Infrastructure - Bridges - - - - - - - - - - Infrastructure - Drainage 17,803,531 18,945,754 19,310,053 19,694,313 21,273,012 21,671,971 22,085,543 23,839,698 24,268,751 24,706,899 26,636,732 Infrastructure - Parks, Gardens and Reserves 7,519,689 9,085,179 9,322,782 8,542,051 8,466,112 7,804,671 7,574,084 8,125,249 8,155,374 8,185,438 8,706,648 Infrastructure - Footpaths and Cycleways 8,850,668 9,663,586 9,324,858 9,044,933 9,132,195 8,672,366 8,235,691 8,315,145 7,896,457 7,695,994 7,967,384 Infrastructure - Airports (Formation Only) - - - - - - - - - - Infrastructure - Airports (Ex Formation) 3,592,884 3,730,931 3,542,500 3,575,151 3,609,097 3,426,819 13,118,612 13,243,172 12,574,324 11,939,257 12,052,619 Infrastructure - Culverts & Pipes 6,831,259 7,144,169 7,042,761 6,942,793 7,260,811 7,157,748 7,056,148 7,379,358 7,274,612 7,171,353 7,499,841 Infrastructure - Other 17,385,848 24,450,148 24,070,938 27,079,174 31,579,561 30,294,817 29,073,120 29,651,413 28,301,902 27,178,857 27,740,959 Work in Progress - - - - - - - - - -

Total Non-Current Assets 463,770,345 499,218,086 511,181,927 514,945,224 541,112,786 543,206,347 551,364,061 586,281,569 588,127,061 587,019,494 614,330,971

TOTAL ASSETS 499,466,763 522,942,603 533,288,094 537,006,518 561,586,972 566,620,560 570,990,244 604,645,729 611,109,126 613,648,035 644,920,430

LIABILITIESCURRENT LIABILITIES

Payables 3,228,297 3,288,965 3,288,965 3,288,965 3,288,965 3,288,965 3,288,965 3,288,965 3,288,965 3,288,965 3,288,965 Current Portion of Long Term Borrowings (all loans) 461,305 461,304 1,047,201 1,279,538 1,252,624 525,823 257,782 265,208 279,569 294,663 296,127 Provisions 1,070,492 1,096,878 1,096,878 1,096,878 1,096,878 1,096,878 1,096,878 1,096,878 1,096,878 1,096,878 1,096,878 Provisions- Long Service Leave 943,040 943,040 943,040 943,040 943,040 943,040 943,040 943,040 943,040 943,040 943,040 Provision- Waste Facility 3,026,202 3,026,202 3,026,202 3,026,202 3,026,202 3,026,202 3,026,202 3,026,202 3,026,202 3,026,202 3,026,202

Total Current Liabilities 8,729,336 8,816,389 9,402,286 9,634,623 9,607,709 8,880,908 8,612,867 8,620,293 8,634,654 8,649,748 8,651,212

Shire of Esperance Long Term Financial Plan 2017/2018 - 2026/2027 Statement of Projected Financial Postition

2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027$0s $0s $0s $0s $0s $0s $0s $0s $0s $0s


NON-CURRENT LIABILITIES

Payables - - - - - - - - - - - Long Term Borrowings 1,715,337 3,114,034 1,490,937 6,217,449 5,016,739 5,217,717 5,227,976 4,955,342 4,661,412 4,351,656 4,054,065 Provisions 4,853,522 4,873,094 4,944,990 5,040,787 5,099,888 5,158,482 5,201,545 5,240,564 5,281,847 5,325,528 5,370,672

Total Non-Current Liabilities 6,568,859 7,987,128 6,435,927 11,258,236 10,116,627 10,376,199 10,429,521 10,195,906 9,943,259 9,677,184 9,424,737

TOTAL LIABILITIES 15,298,195 16,803,517 15,838,212 20,892,859 19,724,336 19,257,107 19,042,388 18,816,199 18,577,913 18,326,931 18,075,949

NET ASSETS 484,168,568 506,139,086 517,449,882 516,113,658 541,862,635 547,363,452 551,947,856 585,829,530 592,531,213 595,321,104 626,844,481

2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027$0s $0s $0s $0s $0s $0s $0s $0s $0s $0s


NET CURRENT ASSETSCURRENT ASSETS

Cash and Cash Equivalents 32,254,642 20,444,499 18,826,149 18,781,276 17,194,168 20,134,195 16,346,166 15,084,143 19,702,047 23,348,523 27,309,442 Receivables 2,973,504 3,047,188 3,047,188 3,047,188 3,047,188 3,047,188 3,047,188 3,047,188 3,047,188 3,047,188 3,047,188 Inventories 222,829 232,830 232,830 232,830 232,830 232,830 232,830 232,830 232,830 232,830 232,830

Total Current Assets 35,450,975 23,724,517 22,106,167 22,061,294 20,474,186 23,414,213 19,626,184 18,364,161 22,982,065 26,628,541 30,589,460

CURRENT LIABILITIESPayables 3,228,297 3,288,965 3,288,965 3,288,965 3,288,965 3,288,965 3,288,965 3,288,965 3,288,965 3,288,965 3,288,965 Provisions - Annual Leave 1,070,492 1,096,878 1,096,878 1,096,878 1,096,878 1,096,878 1,096,878 1,096,878 1,096,878 1,096,878 1,096,878

Total Current Liabilities 4,298,789 4,385,843 4,385,843 4,385,843 4,385,843 4,385,843 4,385,843 4,385,843 4,385,843 4,385,843 4,385,843

NET CURRENT ASSETS 31,152,186 19,338,674 17,720,324 17,675,451 16,088,343 19,028,370 15,240,341 13,978,318 18,596,222 22,242,698 26,203,617

LESS: Restricted Reserves (27,369,749) (19,491,200) (17,848,145) (17,792,550) (16,234,030) (19,161,898) (15,404,113) (14,139,017) (18,732,981) (22,427,219) (26,376,656) ADD: Restricted Cash not in Reserves (Muni) - - - - - - - - - - - ADD: Cash-backed Leave Reserve 149,881 153,252 157,083 161,010 165,036 169,162 173,391 177,725 182,168 186,723 191,391

OPENING/CLOSING FUNDS 3,932,318 726 29,263 43,911 19,348 35,634 9,619 17,025 45,410 2,201 18,351

2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027$0s $0s $0s $0s $0s $0s $0s $0s $0s $0s

289,909,404 296,790,788 306,415,143 305,134,515 308,492,402 307,301,790 315,643,979 324,559,821 322,491,414 321,587,066 7,878,549 1,643,055 55,595 1,558,520 (2,927,868) 3,757,785 1,265,095 (4,593,963) (3,694,239) (3,949,437) (997,165) 7,981,300 (1,336,223) 1,799,367 1,737,256 4,584,404 7,650,747 2,525,556 2,789,891 3,615,681

296,790,788 306,415,143 305,134,515 308,492,402 307,301,790 315,643,979 324,559,821 322,491,414 321,587,066 321,253,310

27,369,749 19,491,200 17,848,145 17,792,550 16,234,030 19,161,898 15,404,113 14,139,017 18,732,981 22,427,219 (7,878,549) (1,643,055) (55,595) (1,558,520) 2,927,868 (3,757,785) (1,265,095) 4,593,963 3,694,239 3,949,437 19,491,200 17,848,145 17,792,550 16,234,030 19,161,898 15,404,113 14,139,017 18,732,981 22,427,219 26,376,656

166,889,414 189,857,098 193,186,593 193,186,593 217,136,204 220,899,765 220,899,765 247,130,692 251,306,819 251,306,819 22,967,684 3,329,495 - 23,949,611 3,763,561 - 26,230,927 4,176,127 - 27,907,696

189,857,098 193,186,593 193,186,593 217,136,204 220,899,765 220,899,765 247,130,692 251,306,819 251,306,819 279,214,515

506,139,086 517,449,881 516,113,658 541,862,636 547,363,453 551,947,856 585,829,530 592,531,213 595,321,104 626,844,481

Net Assets as Balance Sheet 506,139,086 517,449,881 516,113,658 541,862,636 547,363,453 551,947,856 585,829,530 592,531,213 595,321,104 626,844,481

Shire of Esperance Long Term Financial Plan 2017/2018 - 2026/2027Statement of Projected Changes in Equity

CASH BACKED RESERVESBalance 1 July

EQUITYRETAINED SURPLUS

Balance 1 July

Net Total Comprehensive IncomeBalance 30 June

Net Transfer from / (to) Reserve

Balance 30 June

Balance 30 June

TOTAL EQUITY

Revaluation Reserve Movements

Net Transfer (from) / to Reserve Balance 30 June

ASSET REVALUATION RESERVEBalance 1 July

2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027$0s $0s $0s $0s $0s $0s $0s $0s $0s $0s

Rate Levies (Under adopted assumptions) 19,624,021 20,546,350 21,511,950 22,522,930 23,581,421 24,689,658 25,849,978 26,677,079 27,530,642 28,411,516 17,375,139 19,974,338 20,420,462 20,919,182 21,393,588 21,993,779 22,165,825 22,964,569 23,249,565 23,927,248 36,999,160 40,520,688 41,932,412 43,442,111 44,975,010 46,683,437 48,015,803 49,641,648 50,780,207 52,338,764

(48,152,097) (43,704,127) (47,107,307) (45,515,984) (47,146,255) (48,149,265) (49,451,973) (51,240,429) (52,243,777) (53,015,475)

(11,152,937) (3,183,439) (5,174,894) (2,073,873) (2,171,245) (1,465,828) (1,436,170) (1,598,781) (1,463,570) (676,711)

265,540 (400,000) (400,000) (400,000) (400,000) (400,000) (125,000) (400,000) - - 199,000 3,831 3,927 4,025 4,126 4,229 4,335 4,443 4,554 4,668

14,993,065 16,746,870 17,144,795 17,228,522 18,073,087 18,308,037 18,746,262 19,798,829 19,898,527 19,879,666 15,457,605 16,350,701 16,748,722 16,832,547 17,677,213 17,912,266 18,625,597 19,403,272 19,903,081 19,884,334

(22,000) - - - - - - - - - Investment Property (860,000) - (2,188,388) - - - - - - -

(623,149) (9,677,398) (250,000) (500,000) - - (10,000,000) - - - Furniture and Equipment (114,092) (104,643) (123,792) (136,006) (105,786) (116,635) (109,054) (147,546) (122,257) (131,502) Plant and Equipment (4,033,588) (3,009,883) (3,514,047) (3,328,491) (4,502,361) (3,684,628) (4,382,764) (3,798,993) (4,121,618) (4,090,292) Plant and Equipment - Under Lease - - - - - - - - - - Intangibles - - - - - - - - - -

- - - - - - - - - - (13,880,280) (10,882,904) (10,665,821) (11,522,033) (11,987,511) (12,512,441) (12,984,370) (13,111,138) (13,237,999) (13,759,284)

Infrastructure - Bridges - - - - - - - - - - Infrastructure - Drainage (250,535) (571,000) (595,000) (612,000) (631,000) (650,000) (670,000) (689,000) (702,780) (716,836) Infrastructure - Parks, Gardens and Reserves (1,956,053) (1,432,188) (418,826) (513,891) (429,108) (784,481) (1,090,016) (1,093,816) (1,097,693) (1,101,647) Infrastructure - Footpaths and Cycleways (686,350) (150,000) (192,353) - - - - - (200,000) (200,000) Infrastructure - Airports (Formation Only) - - - - - - - - - - Infrastructure - Airports (Ex Formation) (98,050) - (214,464) - - (10,000,000) - - - - Infrastructure - Sewerage - - - - - - - - - - Infrastructure - Other (6,426,814) (740,988) (4,145,218) (4,149,574) (154,062) (158,684) (158,684) - (166,714) (170,049) Work in Progress - - - - - - - - - - Repayment of Loans (461,304) (1,047,201) (1,279,538) (1,252,624) (525,823) (257,782) (265,208) (279,569) (294,663) (296,127) Proceeds from New Loans 1,860,000 10,000 6,238,388 25,000 - - - - - - Grants / Contributions for the Development of Assets 10,155,772 11,164,739 3,838,671 3,873,240 3,908,501 6,050,232 9,086,917 4,124,337 4,253,461 4,292,392 Proceeds Disposal of Assets 1,212,249 1,587,788 1,799,817 1,715,522 1,806,742 1,841,118 2,087,045 1,772,299 858,101 886,164 Net Movement Non Current Receivables - - - - - - - - - - Net Movement Non Current Payables - - - - - - - - - -

- - - - - - - - - - Transfers to Restricted Municipal Reserves (1,405,476) (3,411,819) (3,312,459) (3,367,394) (4,222,496) (4,767,682) (4,833,509) (5,012,850) (4,239,887) (4,445,674) Transfers from Restricted Municipal Reserves 9,284,025 5,054,874 3,368,054 4,925,914 1,294,628 8,525,467 6,098,604 418,887 545,648 496,237

69,385 71,897 95,797 59,100 58,594 43,063 39,019 41,283 43,681 45,145 (8,236,260) (13,138,726) (11,559,179) (14,783,237) (15,489,682) (16,472,453) (17,182,020) (17,776,106) (18,482,720) (19,191,473)

3,932,318 726 29,263 43,911 19,348 35,634 9,619 17,025 45,410 2,201 726 29,263 43,911 19,348 35,634 9,619 17,025 45,410 2,201 18,351

Shire of Esperance Long Term Financial Plan 2017/2018 - 2026/2027 Projected Rate Setting Statement

REVENUES

Proceeds from Self Supporting Loans

Infrastructure - Roads (Ex Formation)

Movements in Provisions and Accruals

Other Revenue

EXPENSES

NON CASH ITEMS

Revenues Sub-total

All Operating Expenses

(Profit)/Loss on Asset Disposals

Net Operating Profit/(Loss)

Sub-total

ESTIMATED SURPLUS/(DEFICIT) JUNE 30 C/FWDESTIMATED SURPLUS/(DEFICIT) JULY 1 B/FWD

Land

Infrastructure - Roads (Formation Only)

Buildings

Advances to Community Groups / Third Parties

Net Cash From Investing Activities

CAPITAL EXPENDITURE AND REVENUE

Depreciation on Assets

2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027$0s $0s $0s $0s $0s $0s $0s $0s $0s $0s $0s0 1 2 3 4 5 6 7 8 9 10

LANDDep'n Rate (Life in Years): 1,000,000,000 Opening Book Value of Land 25,369,500 25,369,500 25,391,500 25,391,500 25,391,500 25,391,500 25,391,500 25,391,500 25,391,500 25,391,500 25,391,500 Cost of Land Acquired 22,000 - - - - - - - - - Book Value Land Disposed (-ve) - - - - - - - Net Value Land 25,391,500 25,391,500 25,391,500 25,391,500 25,391,500 25,391,500 25,391,500 25,391,500 25,391,500 25,391,500 Depreciation Land (not depreciated) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) Depreciation on New Land Acquired (not depreciated) (0) - - - - - - - - - Valuation increment - - - - - - - - - - Impairment (-ve) - - - - - - - - - -

Closing Book Value of Land 25,391,500 25,391,500 25,391,500 25,391,500 25,391,500 25,391,500 25,391,500 25,391,500 25,391,500 25,391,500

Asset revaluation reserve - - - - - - - - - - Impairment Expense - - - - - - - - - - Asset movement 25,369,500 22,000 - - - - - - - - - Proceeds of Land Disposed - - - - - - - - Profit/(Loss) on Disposition of Land - - - - - - - - - -

INVESTMENT PROPERTYDep'n Rate (Life in Years): 1,000,000,000 Opening Book Value of Investment Property 5,935,559 5,935,559 6,620,559 6,020,559 7,608,947 7,008,947 6,408,947 5,808,947 5,208,947 4,608,947 4,608,947 Investment Property Acquired 860,000 - 2,188,388 - - - - - - - Book Value of Investment Property Disposed (-ve) (175,000) (600,000) (600,000) (600,000) (600,000) (600,000) (600,000) (600,000) - - Net Value Investment Property 6,620,559 6,020,559 7,608,947 7,008,947 6,408,947 5,808,947 5,208,947 4,608,947 4,608,947 4,608,947 Depreciation Investment Property (not depreciated) (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) Depreciation on Investment Property Acquired (not depreciated) (0) - (0) - - - - - - - Valuation increment - - - - - - - - - - Impairment (-ve) - - - - - - - - - -

Closing Book Value of Investment Property 6,620,559 6,020,559 7,608,947 7,008,947 6,408,947 5,808,947 5,208,947 4,608,947 4,608,947 4,608,947

Asset revaluation reserve - - - - - - - - - - Impairment Expense - - - - - - - - - - Asset movement 5,935,559 685,000 (600,000) 1,588,388 (600,000) (600,000) (600,000) (600,000) (600,000) - - Proceeds of Investment Property Disposed 350,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 - - Profit/(Loss) on Disposition of Investment Property 175,000 400,000 400,000 400,000 400,000 400,000 400,000 400,000 - -

BUILDINGSDep'n Rate (Life in Years): 29 Opening Book Value of Buildings 56,824,695 56,824,695 55,491,583 66,491,335 64,449,788 62,726,024 64,330,163 62,115,517 69,602,113 71,382,100 68,924,683 Buildings Acquired 623,149 9,677,398 250,000 500,000 - - 10,000,000 - - - Book Value of Buildings Disposed (-ve) - - - - - - (275,000) - - - Net Value Buildings 57,447,844 65,168,981 66,741,335 64,949,788 62,726,024 64,330,163 71,840,517 69,602,113 71,382,100 68,924,683 Depreciation Buildings (1,956,261) (1,910,367) (2,289,047) (2,218,764) (2,159,422) (2,214,646) (2,138,404) (2,396,140) (2,457,418) (2,372,818) Depreciation on Buildings Acquired (Useful Life) 50 (96,774) (2,500) (5,000) - - (100,000) - - -

Shire of Esperance Long Term Financial Plan 2017/2018 - 2026/2027Depreciation Schedule

NOTE: Use of Disposals rows will result in a shortening of the years over which depreciation will occur. The overall depreciation expense will occur over a shorter timeframe

2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027$0s $0s $0s $0s $0s $0s $0s $0s $0s $0s $0s



Depreciation adjustment of Buildings DisposedValuation increment - 3,329,495 - - 3,763,561 - - 4,176,127 - - Impairment (-ve)

Closing Book Value of Buildings 55,491,583 66,491,335 64,449,788 62,726,024 64,330,163 62,115,517 69,602,113 71,382,100 68,924,683 66,551,864

Asset revaluation reserve - 3,329,495 3,329,495 3,329,495 7,093,056 7,093,056 7,093,056 11,269,183 11,269,183 11,269,183 Impairment Expense - - - - - - - - - - Asset movement 56,824,695 623,149 13,006,893 250,000 500,000 3,763,561 - 9,725,000 4,176,127 - - Proceeds of Buildings Disposed - - - - - - - - - - Profit/(Loss) on Disposition of Buildings - - - - - - (275,000) - - -

FURNITURE AND EQUIPMENTDep'n Rate (Life in Years): 4 Opening Book Value of Furniture & Equipment 426,563 426,563 442,162 441,222 459,010 484,497 474,887 477,983 473,036 506,440 507,686 Furniture & Equipment Acquired 114,092 104,643 123,792 136,006 105,786 116,635 109,054 147,546 122,257 131,502 Book Value of Furniture & Equipment Disposed (-ve) - - - - - - - - - - Net Value Furniture & Equipment 540,655 546,805 565,014 595,016 590,283 591,522 587,037 620,582 628,697 639,188 Depreciation Furniture & Equipment (98,493) (102,095) (101,878) (105,985) (111,870) (109,651) (110,366) (109,224) (116,937) (117,224) Depreciation on Furniture & Equipment Acquired (Useful Life) 15 (3,488) (4,126) (4,534) (3,526) (3,888) (3,635) (4,918) (4,075) (4,383) Valuation increment - - - - - - - - - - Impairment (-ve) - - - - - - - - - -

Closing Book Value of Furniture & Equipment 442,162 441,222 459,010 484,497 474,887 477,983 473,036 506,440 507,686 517,580

Asset revaluation reserve - - - - - - - - - - Impairment Expense - - - - - - - - - - Asset movement 426,563 114,092 104,643 123,792 136,006 105,786 116,635 109,054 147,546 122,257 131,502 Proceeds of Furniture & Equipment Disposed - - - - - - - - - - Profit/(Loss) on Disposition of Furniture & Equipment - - - - - - - - - -

PLANT AND EQUIPMENTDep'n Rate (Life in Years): 9 Opening Book Value of Plant & Equipment 14,832,358 14,832,358 15,828,772 16,299,639 16,990,777 17,506,022 19,004,539 19,502,979 20,372,073 20,889,976 21,573,389 Plant & Equipment Acquired 4,033,588 3,009,883 3,514,047 3,328,491 4,502,361 3,684,628 4,382,764 3,798,993 4,121,618 4,090,292 Book Value of Plant & Equipment Disposed (-ve) (1,302,789) (587,788) (799,817) (715,522) (806,742) (841,118) (1,087,045) (772,299) (858,101) (886,164) Net Value Plant & Equipment 17,563,157 18,250,867 19,013,869 19,603,746 21,201,641 21,848,049 22,798,698 23,398,767 24,153,493 24,777,517 Depreciation Plant & Equipment (1,734,385) (1,850,898) (1,905,958) (1,986,774) (2,047,023) (2,222,249) (2,280,532) (2,382,158) (2,442,718) (2,522,631) Depreciation on Plant & Equipment Acquired (Useful Life) 15 (100,329) (117,135) (110,950) (150,079) (122,821) (146,092) (126,633) (137,387) (136,343) Valuation increment - - - - - - - - - - Impairment (-ve)

Closing Book Value of Plant & Equipment 15,828,772 16,299,639 16,990,777 17,506,022 19,004,539 19,502,979 20,372,073 20,889,976 21,573,389 22,118,543

Asset revaluation reserve - - - - - - - - - - Impairment Expense - - - - - - - - - - Asset movement 14,832,358 2,730,799 2,422,095 2,714,230 2,612,969 3,695,619 2,843,510 3,295,719 3,026,694 3,263,517 3,204,128 Proceeds of Plant & Equipment Disposed 862,249 587,788 799,817 715,522 806,742 841,118 1,087,045 772,299 858,101 886,164

2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027$0s $0s $0s $0s $0s $0s $0s $0s $0s $0s $0s



Profit/(Loss) on Disposition of Plant & Equipment (440,540) - - - - - - - - -

INFRASTRUCTURE - ROADS (EX FORMATION)Dep'n Rate (Life in Years): 35 Opening Book Value Infrastructure Roads (Ex Formation) 297,512,770 297,512,770 321,538,723 323,038,759 324,281,766 345,789,988 347,682,897 350,038,916 373,794,844 375,991,655 378,250,473 Road (Ex Formation) Infrastructure Acquired 13,880,280 10,882,904 10,665,821 11,522,033 11,987,511 12,512,441 12,984,370 13,111,138 13,237,999 13,759,284 Book Value of Road (Ex Formation) Infrastructure Disposed (-ve) - - - - - - - - - - Net Value Infrastructure - Roads (Ex Formation) 311,393,050 332,421,627 333,704,580 335,803,799 357,777,499 360,195,338 363,023,286 386,905,982 389,229,654 392,009,757 Depreciation (8,537,910) (9,227,398) (9,270,445) (9,306,117) (9,923,352) (9,977,674) (10,045,286) (10,727,024) (10,790,068) (10,854,890) Depreciation on Infrastructure - Roads (Ex Formation) Acquired (-ve) 35 (155,470) (152,369) (164,600) (171,250) (178,749) (185,491) (187,302) (189,114) (196,561) Valuation increment 18,683,583 - - 19,456,906 - - 21,002,335 - - 22,695,028 Impairment (-ve)

Book Value of Infrastructure - Roads (Ex Formation) 321,538,723 323,038,759 324,281,766 345,789,988 347,682,897 350,038,916 373,794,844 375,991,655 378,250,473 403,653,333

Asset revaluation reserve 18,683,583 18,683,583 18,683,583 38,140,489 38,140,489 38,140,489 59,142,824 59,142,824 59,142,824 81,837,852 Impairment Expense - - - - - - - - - - Asset movement 297,512,770 32,563,863 10,882,904 10,665,821 30,978,939 11,987,511 12,512,441 33,986,705 13,111,138 13,237,999 36,454,312 Proceeds of Infrastructure - Roads (Ex Formation) Disposed - - - - - - - - - - Profit/(Loss) on Disposition of Infrastructure - Roads (Ex Formation) - - - - - - - - - -

INFRASTRUCTURE - DRAINAGEDep'n Rate (Life in Years): 93 Opening Book Value of Drainage 17,803,531 17,803,531 18,945,754 19,310,053 19,694,313 21,273,012 21,671,971 22,085,543 23,839,698 24,268,751 24,706,899 Drainage Acquired 250,535 571,000 595,000 612,000 631,000 650,000 670,000 689,000 702,780 716,836 Book Value of Drainage Disposed (-ve) - - - - - - - - - - Net Value Drainage 18,054,066 19,516,754 19,905,053 20,306,313 21,904,012 22,321,971 22,755,543 24,528,698 24,971,531 25,423,735 Depreciation Drainage (191,556) (203,846) (207,765) (211,900) (228,886) (233,178) (237,628) (256,502) (261,118) (265,832) Depreciation on Infrastructure - Drainage Acquired (Useful Life) 100 (2,855) (2,975) (3,060) (3,155) (3,250) (3,350) (3,445) (3,514) (3,584) Valuation increment 1,083,244 - - 1,181,659 - - 1,325,133 - - 1,482,414 Impairment (-ve)

Closing Book Value of Drainage 18,945,754 19,310,053 19,694,313 21,273,012 21,671,971 22,085,543 23,839,698 24,268,751 24,706,899 26,636,732

Asset revaluation reserve 1,083,244 1,083,244 1,083,244 2,264,903 2,264,903 2,264,903 3,590,035 3,590,035 3,590,035 5,072,449 Impairment Expense - - - - - - - - - - Asset movement 17,803,531 1,333,779 571,000 595,000 1,793,659 631,000 650,000 1,995,133 689,000 702,780 2,199,250 Proceeds of Infrastructure - Drainage Disposed - - - - - - - - - - Profit/(Loss) on Disposition of Infrastructure - Drainage - - - - - - - - - -

INFRASTRUCTURE - PARKS, GARDENS AND RESERVESDep'n Rate (Life in Years): 8 Opening Book Value of Parks, Gardens and Reserves 7,519,689 7,519,689 9,085,179 9,322,782 8,542,051 8,466,112 7,804,671 7,574,084 8,125,249 8,155,374 8,185,438 Parks, Gardens and Reserves Acquired 1,956,053 1,432,188 418,826 513,891 429,108 784,481 1,090,016 1,093,816 1,097,693 1,101,647 Book Value of Parks, Gardens and Reserves Disposed (-ve) - - - - - - - - - - Net Value Parks, Gardens and Reserves 9,475,742 10,517,367 9,741,608 9,055,942 8,895,220 8,589,152 8,664,100 9,219,065 9,253,067 9,287,085 Depreciation Parks, Gardens and Reserves (959,108) (1,158,780) (1,189,086) (1,089,506) (1,079,821) (995,456) (966,046) (1,036,345) (1,040,187) (1,044,022) Depreciation on Infrastructure - Parks, Gardens and Reserves Acquire 20 (35,805) (10,471) (12,847) (10,728) (19,612) (27,250) (27,345) (27,442) (27,541)

2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027$0s $0s $0s $0s $0s $0s $0s $0s $0s $0s $0s



Valuation increment 568,545 - - 512,523 - - 454,445 - - 491,126 Impairment (-ve)

Closing Book Value of Parks, Gardens and Reserves 9,085,179 9,322,782 8,542,051 8,466,112 7,804,671 7,574,084 8,125,249 8,155,374 8,185,438 8,706,648

Asset revaluation reserve 568,545 568,545 568,545 1,081,068 1,081,068 1,081,068 1,535,513 1,535,513 1,535,513 2,026,639 Impairment Expense - - - - - - - - - - Asset movement 7,519,689 2,524,598 1,432,188 418,826 1,026,414 429,108 784,481 1,544,461 1,093,816 1,097,693 1,592,773 Proceeds of Infrastructure - Parks, Gardens and Reserves Disposed - - - - - - - - - - Profit/(Loss) on Disposition of Infrastructure - Parks, Gardens and Reserves - - - - - - - - - -

INFRASTRUCTURE - FOOTPATHS AND CYCLEWAYSDep'n Rate (Life in Years): 20 Opening Book Value of Footpaths and Cycleways 8,850,668 8,850,668 9,663,586 9,324,858 9,044,933 9,132,195 8,672,366 8,235,691 8,315,145 7,896,457 7,695,994 Footpaths and Cycleways Acquired 686,350 150,000 192,353 - - - - - 200,000 200,000 Book Value of Footpaths and Cycleways Disposed (-ve) - - - - - - - - - - Net Value Footpaths and Cycleways 9,537,018 9,813,586 9,517,211 9,044,933 9,132,195 8,672,366 8,235,691 8,315,145 8,096,457 7,895,994 Depreciation Footpaths and Cycleways (445,653) (486,585) (469,530) (455,435) (459,829) (436,675) (414,687) (418,688) (397,606) (387,512) Depreciation on Infrastructure - Footpaths and Cycleways Acquired 35 (2,143) (2,748) - - - - - (2,857) (2,857) Valuation increment 572,221 - - 542,696 - - 494,141 - - 461,760 Impairment (-ve)

Closing Book Value of Footpaths and Cycleways 9,663,586 9,324,858 9,044,933 9,132,195 8,672,366 8,235,691 8,315,145 7,896,457 7,695,994 7,967,384

Asset revaluation reserve 572,221 572,221 572,221 1,114,917 1,114,917 1,114,917 1,609,059 1,609,059 1,609,059 2,070,818 Impairment Expense - - - - - - - - - - Asset movement 8,850,668 1,258,571 150,000 192,353 542,696 - - 494,141 - 200,000 661,760 Proceeds of Infrastructure - Footpaths and Cycleways Disposed - - - - - - - - - - Profit/(Loss) on Disposition of Infrastructure - Footpaths and Cycleways - - - - - - - - - -

INFRASTRUCTURE - AIRPORTS (EX FORMATION)Dep'n Rate (Life in Years): 20 Opening Book Value of Airports 3,592,884 3,592,884 3,730,931 3,542,500 3,575,151 3,609,097 3,426,819 13,118,612 13,243,172 12,574,324 11,939,257 Airports Acquired 98,050 - 214,464 - - 10,000,000 - - - - Book Value of Airports Disposed (-ve) - - - - - - - - - - Net Value Airports 3,690,934 3,730,931 3,756,964 3,575,151 3,609,097 13,426,819 13,118,612 13,243,172 12,574,324 11,939,257 Depreciation Airports (181,459) (188,431) (178,914) (180,563) (182,278) (173,072) (662,557) (668,848) (635,068) (602,993) Depreciation on Infrastructure - Airports Acquired (Useful Life) 37 - (2,898) - - (135,135) - - - - Valuation increment 221,456 - - 214,509 - - 787,117 - - 716,355 Impairment (-ve)

Closing Book Value of Airports 3,730,931 3,542,500 3,575,151 3,609,097 3,426,819 13,118,612 13,243,172 12,574,324 11,939,257 12,052,619

Asset revaluation reserve 221,456 221,456 221,456 435,965 435,965 435,965 1,223,082 1,223,082 1,223,082 1,939,437 Impairment Expense - - - - - - - - - - Asset movement 3,592,884 319,506 - 214,464 214,509 - 10,000,000 787,117 - - 716,355 Proceeds of Infrastructure - Airports Disposed - - - - - - - - - - Profit/(Loss) on Disposition of Infrastructure - Airports - - - - - - - - - -

2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027$0s $0s $0s $0s $0s $0s $0s $0s $0s $0s $0s



INFRASTRUCTURE - CULVERTS & HEADWALLSDep'n Rate (Life in Years): 70 Opening Book Value of Culverts & Pipes 6,831,259 6,831,259 7,144,169 7,042,761 6,942,793 7,260,811 7,157,748 7,056,148 7,379,358 7,274,612 7,171,353 Culverts & Pipes Acquired - - - - - - - - - - Book Value of Culverts & Pipes Disposed (-ve) - - - - - - - - - - Net Value Culverts & Pipes 6,831,259 7,144,169 7,042,761 6,942,793 7,260,811 7,157,748 7,056,148 7,379,358 7,274,612 7,171,353 Depreciation Culverts & Pipes (96,966) (101,408) (99,968) (98,549) (103,063) (101,600) (100,158) (104,746) (103,259) (101,793) Depreciation on Infrastructure - Culverts & Pipes (Useful Life) 100 - - - - - - - - - Valuation increment 409,876 - - 416,568 - - 423,369 - - 430,281 Impairment (-ve) - - - - - - - - - -

Closing Book Value of Culverts & Pipes 7,144,169 7,042,761 6,942,793 7,260,811 7,157,748 7,056,148 7,379,358 7,274,612 7,171,353 7,499,841

Asset revaluation reserve 409,876 409,876 409,876 826,443 826,443 826,443 1,249,812 1,249,812 1,249,812 1,680,093 Impairment Expense - - - - - - - - - - Asset movement 6,831,259 409,876 - - 416,568 - - 423,369 - - 430,281 Proceeds of Infrastructure - Culverts & Pipes - - - - - - - - - - Profit/(Loss) on Disposition of Culverts & Pipes - - - - - - - - - -

INFRASTRUCTURE - OTHERDep'n Rate (Life in Years): 22 Opening Book Value of Other 17,385,848 17,385,848 24,450,148 24,070,938 27,079,174 31,579,561 30,294,817 29,073,120 29,651,413 28,301,902 27,178,857 Other Acquired 6,426,814 740,988 4,145,218 4,149,574 154,062 158,684 158,684 - 166,714 170,049 Book Value of Other Disposed (-ve) - - - - - - - - - Net Value Other 23,812,662 25,191,136 28,216,156 31,228,748 31,733,623 30,453,501 29,231,804 29,651,413 28,468,616 27,348,906 Depreciation Other (791,274) (1,112,788) (1,095,529) (1,232,442) (1,437,266) (1,378,794) (1,323,191) (1,349,511) (1,288,091) (1,236,979) Depreciation on Infrastructure - Other Acquired (Useful Life) 50 (7,410) (41,452) (41,496) (1,541) (1,587) (1,587) - (1,667) (1,700) Valuation increment 1,428,760 - - 1,624,750 - - 1,744,387 - - 1,630,731 Impairment (-ve)

Closing Book Value of Other 24,450,148 24,070,938 27,079,174 31,579,561 30,294,817 29,073,120 29,651,413 28,301,902 27,178,857 27,740,959

Asset revaluation reserve 1,428,760 1,428,760 1,428,760 3,053,510 3,053,510 3,053,510 4,797,897 4,797,897 4,797,897 6,428,629 Impairment Expense - - - - - - - - - - Asset movement 17,385,848 7,855,574 740,988 4,145,218 5,774,324 154,062 158,684 1,903,071 - 166,714 1,800,780 Proceeds of Infrastructure - Other - - - - - - - - - - Profit/(Loss) on Disposition of Infrastructure - Other - - - - - - - - - -

DEPRECIATION SUMMARYOpening Book Value of All Assets 462,885,324 498,333,065 510,296,906 514,060,203 540,227,765 542,321,326 550,479,040 585,396,548 587,242,040 586,134,473 Assets Acquired (Land & Investment Property) 882,000 - 2,188,388 - - - - - - - Assets Acquired (excluding Land & Investment Property) 28,068,911 26,569,004 20,119,521 20,761,995 17,809,828 27,906,869 29,394,888 18,840,493 19,649,061 20,169,610 Book Value of Assets Disposed (Land & Investment Property) (175,000) (600,000) (600,000) (600,000) (600,000) (600,000) (600,000) (600,000) - - Book Value of Assets Disposed (excluding Land & Investment Property) (1,302,789) (587,788) (799,817) (715,522) (806,742) (841,118) (1,362,045) (772,299) (858,101) (886,164) Net Value of Assests 490,358,446 523,714,281 531,204,998 533,506,676 556,630,851 568,787,077 577,911,883 602,864,742 606,033,000 605,417,919 Total Depreciation (14,993,065) (16,746,870) (17,144,795) (17,228,522) (18,073,087) (18,308,037) (18,746,262) (19,798,829) (19,898,527) (19,879,666) Closing Book Value of All Assets 475,365,381 506,967,411 514,060,203 516,278,154 538,557,764 550,479,040 559,165,621 583,065,913 586,134,473 585,538,253

2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027$0s $0s $0s $0s $0s $0s $0s $0s $0s $0s $0s



Depreciation on All Assets Acquired (0) (404,274) (336,674) (342,487) (340,278) (465,042) (467,406) (349,644) (366,057) (372,971) Proceeds of All Assets Disposed 1,212,249 1,587,788 1,799,817 1,715,522 1,806,742 1,841,118 2,087,045 1,772,299 858,101 886,164 Book Value of All assets Disposed (1,477,789) (1,187,788) (1,399,817) (1,315,522) (1,406,742) (1,441,118) (1,962,045) (1,372,299) (858,101) (886,164) Profit on Disposition of Assets (265,540) 400,000 400,000 400,000 400,000 400,000 125,000 400,000 - - Loss on disposition of Assets - - - - - - - - - -

Asset Revaluation Reserve 22,967,684 26,297,179 26,297,179 50,246,790 54,010,351 54,010,351 80,241,278 84,417,405 84,417,405 112,325,101 Movement: Asset Revaluation Reserve 22,967,684 3,329,495 - 23,949,611 3,763,561 - 26,230,927 4,176,127 - 27,907,696 Impairment Expense - - - - - - - - - -

Current Replacement Value of all Assets (from AM Plans) 540,266,562

2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027$0s $0s $0s $0s $0s $0s $0s $0s $0s $0s

LOAN INTEREST REPAYMENTSSelf Supporting Loans

Loan 261 - Pink Lake Country Club 7,242 6,130 4,661 3,090 1,414 137 - - - - Loan 287 - Esp Seafarers Centre 167 53 - - - - - - - - Loan 291 - Recherche Aged Welfare Comm 19,301 18,420 17,349 16,248 15,079 13,834 12,511 10,966 9,453 7,843 Loan 292 - Esperance Squash Club 1,526 1,089 609 113 - - - - - - Loan 295 - Esperance Yacht Club 19,647 19,128 18,279 17,378 16,435 15,445 14,409 13,311 12,163 12,032 Loan 298- Cascade Town Rec Association 1,414 1,397 521 - - - - - - -

Total Interest Paid - Self Supporting Loans 49,297 46,216 41,419 36,830 32,927 29,416 26,920 24,277 21,616 19,875

Council LoansCommunity AmenitiesWaste Management - - 240,000 233,767 227,160 220,156 212,732 204,863 196,529 196,529

- - - - - - - - - -

Recreation and CultureJetty Structure - 42,800 41,404 39,949 38,430 36,847 35,197 33,475 31,733 31,733

Other Property and ServicesLoan 288 - Flinders Land Development (Stage 2 & 3) 15,000 10,000 50,000 25,000 - - - - - - Loan 296- Shark Lake Industrial Park 49,402 46,988 44,735 42,345 39,863 37,268 34,566 31,717 28,748 28,383

64,402 99,788 376,139 341,061 305,453 294,271 282,495 270,055 257,010 256,645

113,699 146,005 417,559 377,890 338,380 323,687 309,414 294,331 278,625 276,520 Total Interest Paid

Shire of Esperance Long Term Financial Plan 2017/2018 - 2026/2027Loan Repayment Schedule (compiled from amortisation schedules)

Rec'n & Culture

Total Interest Paid on Council Loans

2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027$0s $0s $0s $0s $0s $0s $0s $0s $0s $0s


LOAN PRINCIPAL REPAYMENTSSelf Supporting Loans

Loan 261 - Pink Lake Country Club Opening 110,641 92,411 72,938 52,137 29,918 6,184 - - - - New Proceeds - - - - - - - - - - Principal Paid 18,230 19,473 20,801 22,219 23,734 6,184 - - - Principal Outstanding 92,411 72,938 52,137 29,918 6,184 - - - - -

Loan 287 - Esp Seafarers Centre Opening 5,561 2,427 - - - - - - - - New Proceeds - - - - - - - - - Principal Paid 3,134 2,427 - - - - - - - Principal Outstanding 2,427 - - - - - - - - -

Loan 291 - Recherche Aged Welfare CommOpening 279,925 266,359 251,954 236,563 220,170 202,709 184,111 164,301 143,201 120,727 New Proceeds - - - - - - - - - - Principal Paid 13,566 14,405 15,391 16,393 17,461 18,598 19,810 21,100 22,474 23,938 Principal Outstanding 266,359 251,954 236,563 220,170 202,709 184,111 164,301 143,201 120,727 96,789

Loan 292 - Esperance Squash ClubOpening 25,191 18,525 11,446 3,930 - - - - - - New Proceeds - - - - - - - - - - Principal Paid 6,666 7,079 7,516 3,930 - - - - - Principal Outstanding 18,525 11,446 3,930 - - - - - - -

2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027$0s $0s $0s $0s $0s $0s $0s $0s $0s $0s


Loan 295 - Esperance Yacht Club Opening 355,253 340,979 325,981 310,221 293,663 276,264 257,983 238,774 218,591 197,384 New Proceeds - - - - - - - - - Principal Paid 14,274 14,998 15,760 16,558 17,399 18,281 19,209 20,183 21,207 21,207 Principal Outstanding 340,979 325,981 310,221 293,663 276,264 257,983 238,774 218,591 197,384 176,177

Loan 298- Cascade Town Rec AssociationOpening 63,359 49,844 36,329 0 0 0 0 0 0 0 New Proceeds - - - - - - - - - Principal Paid 13,515 13,515 36,329 - - - - - - Principal Outstanding 49,844 36,329 0 0 0 0 0 0 0 0

Totals - Self SupportingOpening 839,930 770,545 698,648 602,851 543,751 485,157 442,094 403,075 361,792 318,111 New Proceeds - - - - - - - - - - Principal Paid 69,385 71,897 95,797 59,100 58,594 43,063 39,019 41,283 43,681 45,145 Principal Outstanding 770,545 698,648 602,851 543,751 485,157 442,094 403,075 361,792 318,111 272,967 Net Movement (69,385) (71,897) (95,797) (59,100) (58,594) (43,063) (39,019) (41,283) (43,681) (45,145)

Council LoansCommunity AmenititesWaste ManagementOpening - - - 3,896,113 3,785,993 3,669,266 3,545,535 3,414,380 3,275,356 3,127,998 New Proceeds - 4,000,000 - - - - - - - Principal Paid - - 103,887 110,120 116,727 123,731 131,155 139,024 147,358 147,358 Principal Outstanding - - 3,896,113 3,785,993 3,669,266 3,545,535 3,414,380 3,275,356 3,127,998 2,980,640 Recreation and CultureJetty StructureOpening 1,000,000 967,382 933,368 897,899 860,911 822,340 782,119 740,176 696,491 New Proceeds 1,000,000 - - - - - - - - Principal Paid - 32,618 34,014 35,469 36,988 38,571 40,221 41,943 43,685 43,685 Principal Outstanding 1,000,000 967,382 933,368 897,899 860,911 822,340 782,119 740,176 696,491 652,806

2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027$0s $0s $0s $0s $0s $0s $0s $0s $0s $0s


Other Property and ServicesLoan 288 - Flinders Land Development (Stage 2 & 3)Opening 378,850 888,850 - 1,238,388 263,388 - - - - - New Proceeds 860,000 10,000 2,238,388 25,000 - - - - - - Principal Paid 350,000 898,850 1,000,000 1,000,000 263,388 - - - - - Principal Outstanding 888,850 - 1,238,388 263,388 - - - - - -

Loan 296- Shark Lake Industrial ParkOpening 957,862 915,943 872,107 826,267 778,332 728,206 675,789 620,976 563,657 503,718 New Proceeds - - - - - - - - - - Principal Paid 41,919 43,836 45,840 47,935 50,126 52,417 54,813 57,319 59,939 59,939 Principal Outstanding 915,943 872,107 826,267 778,332 728,206 675,789 620,976 563,657 503,718 443,779

Totals - Council LoansOpening 1,336,712 2,804,793 1,839,489 6,894,136 5,725,612 5,258,383 5,043,664 4,817,475 4,579,189 4,328,207 New Proceeds 1,860,000 10,000 6,238,388 25,000 - - - - - - Principal Paid 391,919 975,304 1,183,741 1,193,524 467,229 214,719 226,189 238,286 250,982 250,982 Principal Outstanding 2,804,793 1,839,489 6,894,136 5,725,612 5,258,383 5,043,664 4,817,475 4,579,189 4,328,207 4,077,225 Net Movement 1,468,081 (965,304) 5,054,647 (1,168,524) (467,229) (214,719) (226,189) (238,286) (250,982) (250,982)

Totals - All LoansOpening 2,176,642 3,575,338 2,538,137 7,496,987 6,269,363 5,743,540 5,485,758 5,220,550 4,940,981 4,646,318 New Proceeds 1,860,000 10,000 6,238,388 25,000 - - - - - - Principal Paid 461,304 1,047,201 1,279,538 1,252,624 525,823 257,782 265,208 279,569 294,663 296,127 Principal Outstanding 3,575,338 2,538,137 7,496,987 6,269,363 5,743,540 5,485,758 5,220,550 4,940,981 4,646,318 4,350,192 Net Movement 1,398,696 (1,037,201) 4,958,850 (1,227,624) (525,823) (257,782) (265,208) (279,569) (294,663) (296,127)

2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027$ $ $ $ $ $ $ $ $ $

NET DEBT RATIO (NDR)(15,617,128) (15,004,678) (9,968,871) (9,576,502) (13,008,645) (9,443,847) (8,411,618) (13,272,792) (17,176,724) (21,395,632)

Operating Revenue 38,772,108 40,120,688 41,532,412 43,042,111 44,575,010 46,283,437 47,890,803 49,241,648 50,780,207 52,338,764 -40.28% -37.40% -24.00% -22.25% -29.18% -20.40% -17.56% -26.95% -33.83% -40.88%

DEBT SERVICE COVERAGE RATIO (DSCR)22.7x 11.2x 7.1x 9.3x 18.3x 28.8x 30.4x 31.5x 32.6x 34.0x

PRUDENTIAL LOAN SERVICE LIMITS1 ASSUMED ADDITIONAL LOAN TERMS50% 20

Debt Service Coverage Ratio (x) 2.0x Interest Rate3 4.50%

INDICATIVE ADDITIONAL BORROWING CAPACITY4 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023Individual year's capacity without breaching NDR 35,003,182 35,065,022 30,735,077 31,097,557 35,296,149 32,585,566 32,357,019 37,893,616 42,566,827 47,565,014 Individual year's capacity without breaching DSCR 77,361,034 71,043,009 55,890,326 77,211,931 91,782,800 101,481,143 106,309,060 110,220,007 114,255,244 119,244,934 Without breaching NDR during life of loan 30,735,077 30,735,077 30,735,077 31,097,557 32,357,019 32,357,019 32,357,019 37,893,616 42,566,827 47,565,014 Without breaching DSCR during life of loan 55,890,326 55,890,326 55,890,326 77,211,931 91,782,800 101,481,143 106,309,060 110,220,007 114,255,244 119,244,934

30,735,077 30,735,077 30,735,077 31,097,557 32,357,019 32,357,019 32,357,019 37,893,616 42,566,827 47,565,014

IMPORTANT NOTES1 NDR and DSCR constraints at 50% and 2.0x are generic prudential limits only2 Assumes any additional new loan(s) drawn will be amortized to zero over the loan term3 Average 20 year rate over the 10 year period from 2003-2012 was approximately 6%. Excludes applicable State guarantee fees.4 Actual loan applications require submission of audited financial statements, approved budgets, details of loan purposes and are subject to WATC approval.5 Successive years capacity assumes previous years capacity not drawn. Therefore, if any future capacity is used, it will lower the additional capacity in subsequent years.

Debt Service Coverage Ratio (KPI's worksheet)

Net Debt Ratio (%) Loan Term (Years)2

Indicative Additional Borrowing Capacity5

Long Term Financial Plan 2017/2018 - 2026/2027Indicative Additional Borrowing Capacity

Net Debt

Net Debt Ratio

Interest Rate 2.50% 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027$0s $0s $0s $0s $0s $0s $0s $0s $0s $0s

LAND PURCHASE AND DEVELOPMENT519,179 460,055 572,706 537,024 525,450 1,275,198 2,307,078 1,364,755 2,398,874 2,458,845

Transfer to Reserve 11,676 122,651 14,318 13,426 749,748 1,031,880 1,057,677 1,034,119 59,972 61,471 (70,800) (10,000) (50,000) (25,000) - - (2,000,000) - - - 460,055 572,706 537,024 525,450 1,275,198 2,307,078 1,364,755 2,398,874 2,458,845 2,520,317

EASTERN SUBURBS WATER PIPELINE180,492 177,454 181,890 186,438 191,099 195,876 200,773 205,792 210,937 216,210

Transfer to Reserve 4,059 4,436 4,547 4,661 4,777 4,897 5,019 5,145 5,273 5,405 (7,097) - - - - - - - - -

177,454 181,890 186,438 191,099 195,876 200,773 205,792 210,937 216,210 221,616

JETTY1,874,765 89,655 211,896 337,194 468,024 604,572 747,032 895,599 1,050,479 1,211,880

Transfer to Reserve 182,362 122,241 125,297 130,830 136,549 142,459 148,568 154,880 161,401 168,139 (1,967,472) - - - - - - - - -

89,655 211,896 337,194 468,024 604,572 747,032 895,599 1,050,479 1,211,880 1,380,019

EMPLOYEE ENTITLEMENTS (LEAVE)834,942 853,719 875,062 896,939 919,362 942,346 965,905 990,052 1,014,804 1,040,174

Transfer to Reserve 18,777 21,343 21,877 22,423 22,984 23,559 24,148 24,751 25,370 26,004 - - - - - - - - - -

853,719 875,062 896,939 919,362 942,346 965,905 990,052 1,014,804 1,040,174 1,066,178

AERODROME5,431,055 6,005,520 6,713,647 7,237,672 8,002,175 8,770,823 1,532,844 2,195,035 2,887,759 3,580,389

Transfer to Reserve 742,716 783,127 813,489 839,503 871,786 904,438 737,191 767,724 799,299 831,157 (168,251) (75,000) (289,464) (75,000) (103,138) (8,142,417) (75,000) (75,000) (106,669) (75,000)

6,005,520 6,713,647 7,237,672 8,002,175 8,770,823 1,532,844 2,195,035 2,887,759 3,580,389 4,336,546

UNSPENT GRANTS & CONTRIBUTIONS3,550,618 - - - - - - - - -

Transfer to Reserve - - - - - - - - - - (3,550,618) - - - - - - - - -

- - - - - - - - - -

OFF STREET PARKING504,432 515,776 528,670 541,887 555,434 569,320 583,553 598,142 613,096 628,423


515,776 528,670 541,887 555,434 569,320 583,553 598,142 613,096 628,423 644,134

Balance 30 June

Transfer From ReserveBalance 30 June

Balance 30 June

Opening Balance

Transfer From Reserve

Shire of Esperance Long Term Financial Plan 2017/2018 - 2026/2027Cash Reserves

Opening Balance


Opening Balance

Opening Balance

Balance 30 June

Opening Balance


Balance 30 June

Balance 30 June

Opening Balance


Opening Balance





SANITATION (RUBBISH REMOVAL) SERVICES4,418,144 3,164,428 4,175,817 3,396,733 1,118,836 1,940,733 3,602,433 5,026,438 6,844,344 8,748,422

Transfer to Reserve 99,360 1,887,139 1,948,583 1,965,990 1,946,665 2,005,586 2,086,270 2,161,794 2,247,965 2,337,104 (1,353,076) (875,750) (2,727,667) (4,243,887) (1,124,768) (343,887) (662,265) (343,887) (343,887) (343,887) 3,164,428 4,175,817 3,396,733 1,118,836 1,940,733 3,602,433 5,026,438 6,844,344 8,748,422 10,741,639

HACC ASSET REPLACEMENT608,004 520,134 283,137 239,293 163,248 100,607 63,959 (295,781) (303,175) (405,846)

Transfer to Reserve 12,687 13,003 7,078 5,982 4,081 2,515 1,599 (7,395) (7,579) (10,146) (100,557) (250,000) (50,923) (82,027) (66,722) (39,163) (361,339) - (95,092) (77,350) 520,134 283,137 239,293 163,248 100,607 63,959 (295,781) (303,175) (405,846) (493,343)

ESPERANCE HOMECARE FUNDRAISING89,184 92,176 94,480 96,842 99,263 101,745 104,289 106,896 109,568 112,308


92,176 94,480 96,842 99,263 101,745 104,289 106,896 109,568 112,308 115,115

PLANT REPLACEMENT942,350 963,543 987,632 1,012,322 1,037,630 1,063,571 1,090,160 1,117,414 1,145,350 1,173,984


963,543 987,632 1,012,322 1,037,630 1,063,571 1,090,160 1,117,414 1,145,350 1,173,984 1,203,333

BUILDING MAINTENANCE4,486,759 3,732,566 2,284,128 2,297,651 2,065,639 2,432,039 2,961,895 609,377 1,252,515 1,966,290

Transfer to Reserve 104,961 295,686 263,523 267,989 366,400 529,855 647,482 643,138 713,775 786,268 (859,154) (1,744,124) (250,000) (500,000) - - (3,000,000) - - -

3,732,566 2,284,128 2,297,651 2,065,639 2,432,039 2,961,895 609,377 1,252,515 1,966,290 2,752,559

GOVERNANCE AND WORKERS COMPENSATION322,516 202,769 207,838 213,034 218,360 223,819 229,415 235,150 241,029 247,054

Transfer to Reserve 37,253 5,069 5,196 5,326 5,459 5,595 5,735 5,879 6,026 6,176 (157,000) - - - - - - - - - 202,769 207,838 213,034 218,360 223,819 229,415 235,150 241,029 247,054 253,231

IT SYSTEMS & PROCESS DEVELOPMENT RESERVE288,791 295,286 302,668 310,235 317,991 325,940 334,089 342,441 351,002 359,777


295,286 302,668 310,235 317,991 325,940 334,089 342,441 351,002 359,777 368,772

Opening Balance

Balance 30 June


Opening Balance


Balance 30 JuneTransfer From Reserve

Opening Balance


Opening Balance



Opening Balance


Opening Balance

Opening Balance



ESPERANCE HOME CARE LEAVE ENTITLEMENTS149,881 153,252 157,083 161,010 165,036 169,162 173,391 177,725 182,168 186,723


153,252 157,083 161,010 165,036 169,162 173,391 177,725 182,168 186,723 191,391

ESPERANCE HOME CARE LONG SERVICE LEAVE RESERVE191,244 195,545 200,434 205,444 210,581 215,845 221,241 226,772 232,442 238,253


195,545 200,434 205,444 210,581 215,845 221,241 226,772 232,442 238,253 244,209

PRIORITY PROJECTS RESERVE2,977,393 2,069,322 71,055 122,831 175,902 230,300 286,057 343,209 501,789 664,334

Transfer to Reserve 141,929 101,733 51,776 53,071 54,398 55,757 57,151 158,580 162,545 166,608 (1,050,000) (2,100,000) - - - - - - - - 2,069,322 71,055 122,831 175,902 230,300 286,057 343,209 501,789 664,334 830,942

TOTAL RESERVES SUMMARY27,369,749 19,491,200 17,848,145 17,792,550 16,234,030 19,161,898 15,404,113 14,139,017 18,732,981 22,427,219

Transfer to Reserve 1,405,476 3,411,819 3,312,459 3,367,394 4,222,496 4,767,682 4,833,509 5,012,850 4,239,887 4,445,674 (9,284,025) (5,054,874) (3,368,054) (4,925,914) (1,294,628) (8,525,467) (6,098,604) (418,887) (545,648) (496,237) 19,491,200 17,848,145 17,792,550 16,234,030 19,161,898 15,404,113 14,139,017 18,732,981 22,427,219 26,376,656 Total Reserves 30 June

Opening Balance


Balance 30 JuneTransfer From Reserve


Opening Balance


Opening Balance

Opening Balance

2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027$0s $0s $0s $0s $0s $0s $0s $0s $0s $0s

TOTAL ONE OFF PROJECTS SUMMARY

TRUE - - - - - - - - - - TRUE - - - - - - - - - -

Total - - - - - - - - - -

TRUE Labour - - - - - - - - - - TRUE Contracts & Materials - (378,300) (2,405,545) (35,000) (104,797) (46,100) (125,249) (54,550) (129,554) (54,550) TRUE Other - (9,000) - - - - - - - -

Total - (387,300) (2,405,545) (35,000) (104,797) (46,100) (125,249) (54,550) (129,554) (54,550)

Net Total - (387,300) (2,405,545) (35,000) (104,797) (46,100) (125,249) (54,550) (129,554) (54,550)

Revenue Type 2

Shire of Esperance Long Term Financial Plan 2017/2018 - 2026/2027Projected Non Capital Projects Summary

NOTE: Values must be in actual dollars to be spent/ received in each year - these are not escalated.

Expenditure

RevenueRevenue Type 1

2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027$0s $0s $0s $0s $0s $0s $0s $0s $0s $0s



Project: 1 <- Include in TotalDescription:

TRUE Revenue Type 1 - - - - - - - - - - TRUE Revenue Type 2 - - - - - - - - - -

Total - - - - - - - - - -

TRUE Labour - - - - - - - - - - TRUE Contracts & Materials - (57,300) (62,900) (35,000) (38,100) (46,100) (54,550) (54,550) (54,550) (54,550) TRUE Other - - - - - - - - - -

Total - (57,300) (62,900) (35,000) (38,100) (46,100) (54,550) (54,550) (54,550) (54,550)

TRUE Net Total - (57,300) (62,900) (35,000) (38,100) (46,100) (54,550) (54,550) (54,550) (54,550)



Total - - - - - - - - - -

TRUE Labour - - - - - - - - - - TRUE Contracts & Materials - - (16,854) - (17,865) - (18,937) - (20,090) - TRUE Other - - - - - - - - - -

Total - - (16,854) - (17,865) - (18,937) - (20,090) -

TRUE Net Total - - (16,854) - (17,865) - (18,937) - (20,090) -

Revenue (enter as Positive)IT Equipment Replacement

Expenditure (enter as Negative):

Community Perception SurveyRevenue (enter as Positive)


2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027$0s $0s $0s $0s $0s $0s $0s $0s $0s $0s




FALSE Revenue Type 1 - - - - - - - - - - FALSE Revenue Type 2 - - - - - - - - - -

Total - - - - - - - - - -

FALSE Labour - - - - - - - - - - FALSE Contracts & Materials - - - (22,500) - - - (25,000) - - FALSE Other - - - - - - - - - -

Total - - - (22,500) - - - (25,000) - -

FALSE Net Total - - - (22,500) - - - (25,000) - -



Total - - - - - - - - - -

TRUE Labour - - - - - - - - - - TRUE Contracts & Materials - - - - - - - - - - TRUE Other - (9,000) - - - - - - - -

Total - (9,000) - - - - - - - -

TRUE Net Total - (9,000) - - - - - - - -

Strategic Plan Review

Il de Re DelegationRevenue (enter as Positive)


Revenue (enter as Positive)


2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027$0s $0s $0s $0s $0s $0s $0s $0s $0s $0s





Total - - - - - - - - - -

TRUE Labour - - - - - - - - - - TRUE Contracts & Materials - (21,000) - - - - - - - - TRUE Other - - - - - - - - - -

Total - (21,000) - - - - - - - -

TRUE Net Total - (21,000) - - - - - - - -



Total - - - - - - - - - -

TRUE Labour - - - - - - - - - - TRUE Contracts & Materials - (250,000) (2,279,723) - - - - - - - TRUE Other - - - - - - - - - -

Total - (250,000) (2,279,723) - - - - - - -

TRUE Net Total - (250,000) (2,279,723) - - - - - - -


Authority Version Upgrade- V7Revenue (enter as Positive)


Waste Management (Capping & Scoping Document)Revenue (enter as Positive)

2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027$0s $0s $0s $0s $0s $0s $0s $0s $0s $0s





Total - - - - - - - - - -

TRUE Labour - - - - - - - - - - TRUE Contracts & Materials - - (46,068) - (48,832) - (51,762) - (54,914) - TRUE Other - - - - - - - - - -

Total - - (46,068) - (48,832) - (51,762) - (54,914) -

TRUE Net Total - - (46,068) - (48,832) - (51,762) - (54,914) -



Total - - - - - - - - - -

TRUE Labour - - - - - - - - - - TRUE Contracts & Materials - (50,000) - - - - - - - - TRUE Other - - - - - - - - - -

Total - (50,000) - - - - - - - -

TRUE Net Total - (50,000) - - - - - - - -

Revenue (enter as Positive)

Council ElectionsRevenue (enter as Positive)



Tourism Strategy- Consulting

2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2025/2026 2026/2027$0s $0s $0s $0s $0s $0s $0s $0s $0s $0s

Statement of Capital Works Summary

Land 22,000 - - - - - - - - - Investment Property 860,000 - 2,188,388 - - - - - - - Buildings 623,149 9,677,398 250,000 500,000 - - 10,000,000 - - - Furniture and Equipment 114,092 104,643 123,792 136,006 105,786 116,635 109,054 147,546 122,257 131,502 Plant and Equipment 4,033,588 3,009,883 3,514,047 3,328,491 4,502,361 3,684,628 4,382,764 3,798,993 4,121,618 4,090,292 Plant and Equipment - Under Lease - - - - - - - - - - Intangibles - - - - - - - - - - Infrastructure - Roads (Formation Only) - - - - - - - - - - Infrastructure - Roads (Ex Formation) 13,880,280 10,882,904 10,665,821 11,522,033 11,987,511 12,512,441 12,984,370 13,111,138 13,237,999 13,759,284 Infrastructure - Bridges - - - - - - - - - - Infrastructure - Drainage 250,535 571,000 595,000 612,000 631,000 650,000 670,000 689,000 702,780 716,836 Infrastructure - Parks, Gardens and Reserves 1,956,053 1,432,188 418,826 513,891 429,108 784,481 1,090,016 1,093,816 1,097,693 1,101,647 Infrastructure - Footpaths and Cycleways 686,350 150,000 192,353 - - - - - 200,000 200,000 Infrastructure - Airports (Formation Only) - - - - - - - - - - Infrastructure - Airports (Ex Formation) 98,050 - 214,464 - - 10,000,000 - - - - Infrastructure - Sewerage - - - - - - - - - - Infrastructure - Other 6,426,814 740,988 4,145,218 4,149,574 154,062 158,684 158,684 - 166,714 170,049 Work in Progress - - - - - - - - - - Total Capital Works 28,950,911 26,569,004 22,307,909 20,761,995 17,809,828 27,906,869 29,394,888 18,840,493 19,649,061 20,169,610

Represented by:

Total Renewal Investment 23,080,240 15,283,329 13,197,062 13,255,269 14,734,830 17,740,981 21,171,277 15,719,421 16,320,661 16,787,150 Total Upgrade Investment 2,681,223 2,732,180 1,972,171 2,461,374 2,072,388 9,135,828 4,668,048 2,201,194 2,223,409 2,255,368 Total New Investment 3,189,448 8,553,495 7,138,675 5,045,353 1,002,610 1,030,060 3,555,563 1,083,324 1,104,991 1,127,091 Total Capital Works 28,950,911 26,569,004 22,307,909 20,761,995 17,809,828 27,906,869 29,394,888 19,003,938 19,649,061 20,169,610

Shire of Esperance Long Term Financial Plan 2017/2018 - 2026/2027Forward Capital Works Program - Summary

Units

ASSET DESCRIPTION TOTAL$ $ % $ % $ %

LandDevelopment Area 3 Lots 22,000 - 0.00% - 22,000 100.00%

- 0.00% - - 100.00%Sub-Total - Land 22,000 - - 22,000

Investment PropertyFlinders Subdivision- Stage 3 860,000 - 0.00% - 0.00% 860,000 100.00%

- 100.00% - 0.00% - 0.00%Sub-Total - Investment Property 860,000 - - 860,000

BuildingsBOILC Solar Panels 330,000 165,000 50.00% - 0.00% 165,000 50.00%Depot Office and Stores Shed 166,518 83,259 50.00% - 83,259 50.00%Gibson BFB Shed 28,713 0.00% 28,713 100.00%Coomalbidge Fire Shed 92,918 - 0.00% - 92,918 100.00%BOILC CCTV 5,000 0.00% 5,000 100.00%

- 0.00% - - 100.00%Sub-Total - Buildings 623,149 248,259 - 374,890

Furniture & EquipmentHopper for Glass Crusher 5,000 - 0.00% - 5,000 100.00%HACC Assets 74,489 74,489 100.00% - - 0.00%Equipment at Civic Centre 34,603 34,603 100.00% - -

- 100.00% - - Sub-Total - Furniture & Equipment 114,092 109,092 - 5,000

Plant & EquipmentLight Vehicle Replacements 762,435 762,435 100.00% - 0.00% - 0.00%Pump for Truckwash 12,500 - 0.00% - 0.00% 12,500 100.00%Major Plant Replacement 2,349,553 2,349,553 100.00% - 0.00% - 0.00%Rangers Vehicle Pod 16,000 - 0.00% - 0.00% 16,000 100.00%Sundry Equipment Replacement 193,100 193,100 100.00% - 0.00% - 0.00%Emergency Services Vehicles 700,000 700,000 100.00% - 0.00% - 0.00%

Sub-Total - Plant & Equipment 4,033,588 4,005,088 - 28,500

Plant & Equipment - Under LeaseSub-Total - Plant & Equipment - Under Lease - - - -

IntangiblesSub-Total - Intangibles - - - -

Infrastructure - Roads (Formation)Sub-Total - Infrastructure - Roads (Formation) - - - -

Infrastructure - Roads (Ex Formation)MRWA RRG Project expenditure 2,839,886 2,118,555 74.60% 721,331 25.40% - Municipal Allocation - Rural 6,227,797 5,916,407 95.00% 205,517 3.30% 105,873 1.70%Municipal Allocation - Town 1,380,293 459,638 33.30% 459,638 33.30% 461,018 33.40%State Black Spot Projects 533,706 533,706 100.00% - - Roads to recovery program 2,623,610 1,639,756 62.50% 983,854 37.50% - MRWA Direct Grant - 95.00% - 3.30% - 1.70%Carparks 274,988 274,988 100.00% - -

Sub-Total - Infrastructure - Roads (Ex Formation) 13,880,280 10,943,050 2,370,340 566,890

RENEWAL UPGRADE NEW

Capital Expenditure Summary

Shire of Esperance Long Term Financial Plan 2017/2018 - 2026/2027Forward Capital Works Program

Year 1 - 2017/2018

Units


RENEWAL UPGRADE NEW



Year 1 - 2017/2018

Infrastructure - BridgesSub-Total - Infrastructure - Bridges - - - -

Infrastructure - Drainage

Street Drainage 250,535 - 0.00% - 0.00% 250,535 100.00%- 100.00% - -

Sub-Total - Infrastructure - Drainage 250,535 - - 250,535

Infrastructure - Parks, Gardens & Reserves

Quagi Beach Restoration 31,487 31,487 100.00% - - 0.00%

Twilight Beach Restoration 84,346 - 0.00% 33,738 40.00% 50,608 60.00%

Castletown Quays Restoration 43,250 - 0.00% 21,625 50.00% 21,625 50.00%

Oval Fencing Replacement 46,575 46,575 100.00%

Public Open Space Implementation 257,038 257,038 100.00% - 0.00% - 0.00%

Eastern Suburbs Water Supply Upgrade 847,783 847,783 100.00% - 0.00% - 0.00%

Lake Monji Rebuild 259,183 259,183 100.00% - 0.00% - 0.00%

Coastal Reserves Asset Management 386,391 130,871 33.87% 255,520 66.13% - 0.00%Sub-Total - Infrastructure - Parks, Gardens & Reserves 1,956,053 1,572,937 310,884 72,233

Infrastructure - Footpaths and Cycleways

Footpath Construction 686,350 - 0.00% - 686,350 100.00%- 100.00% - -

Sub-Total - Infrastructure - Footpaths and Cycleways 686,350 - - 686,350

Infrastructure - Airports (Formation Only)Sub-Total - Infrastructure - Airports (Formation Only) - - - -

Infrastructure - Airports (Ex Formation)

Water Bomber parking apron 98,050 - 0.00% - 98,050 100.00%- 100.00% - -

Sub-Total - Infrastructure - Airports (Ex Formation) 98,050 - - 98,050

Infrastructure - SewerageSub-Total - Infrastructure - Sewerage - - - -

Infrastructure - Other

Foreshore CCTV 50,000 - 0.00% - 0.00% 50,000 100.00%

Airport CCTV 15,000 - 0.00% - 0.00% 15,000 100.00%

Tanker Jetty Replacement 6,000,000 6,000,000 100.00% - 0.00% -

Condingup Water Tank 30,000 30,000 100.00% - 0.00% -

Street Decorations 60,000 - 0.00% - 0.00% 60,000 100.00%

Condingup Niche Wall 20,000 - 0.00% - 0.00% 20,000 100.00%

Liquid Waste Drying Bed 80,000 - 0.00% - 0.00% 80,000 100.00%

Period Village- Services 143,000 143,000 100.00% - 0.00% - 0.00%

Scaddan Water Tanks 28,814 28,814 100.00% - 0.00% - 0.00%6,426,814 6,201,814 - 225,000

Work in Progress (by asset Class)Sub-Total - Work in Progress (by asset Class) - - - -

GRAND TOTAL 28,950,911 23,080,240 2,681,223 3,189,448

Units

ASSET DESCRIPTION TOTAL

$ $ % $ % $ %

Land

Sub-Total - Land - - - -

Investment Property

- 100.00% - -

- 100.00% - -

- 100.00% - -

Sub-Total - Investment Property - - - -

Buildings

Indoor Sports Stadium Upgrade 7,827,398 782,740 10.00% - 7,044,658 90.00%

Caravan Park Refurbishment 1,300,000 910,000 70.00% 390,000 30.00% -

Homecare Building Refurbishment 550,000 385,000 70.00% 165,000 30.00% -

Sub-Total - Buildings 9,677,398 2,077,740 555,000 7,044,658

Furniture & Equipment

Furniture & Equipment Replacement 71,643 71,643 100.00% - -

IT Equipment 33,000 33,000 100.00% - -

- 100.00% - -

Sub-Total - Furniture & Equipment 104,643 104,643 - -

Plant & Equipment

Light Vehicles 534,570 534,570 100.00% - -

Heavy Plant 1,563,540 1,563,540 100.00% - -

Misc. Plant 173,663 173,663 100.00% - -

Light Vehicles (Waste Management) 38,110 38,110 100.00% - -

Light Vehicles (Airport) - 100.00% - -

Heavy Plant (Waste Management) - 100.00% - -

Fire Fighting Appliances 700,000 700,000 100.00% - -

100.00%

- 100.00% - -

Sub-Total - Plant & Equipment 3,009,883 3,009,883 - -

Plant & Equipment - Under Lease

Sub-Total - Plant & Equipment - Under Lease - - - -

Intangibles

Sub-Total - Intangibles - - - -


Sub-Total - Infrastructure - Roads (Formation Only) - - - -


MRWA RRG Project expenditure 2,480,879 2,480,879 100.00% - 0.00% - 0.00%

Municipal Allocation - Rural 4,892,219 3,424,553 70.00% 1,223,055 25.00% 244,611 5.00%

Municipal Allocation - Town 711,903 569,522 80.00% 142,381 20.00% - 0.00%

State Black Spot Projects 57,000 28,500 50.00% 28,500 50.00% - 0.00%

Roads to recovery program (70% Rural, 30% Urban) 1,300,573 910,401 70.00% 390,172 30.00% - 0.00%

Transport Asset Management 500,000 500,000 100.00% - -

MRWA Direct 385,460 269,822 70.00% 115,638 30.00% -

National Black Spot 554,870 277,435 50.00% 277,435 50.00% -

- 100.00% - -


Year 2 - 2018/2019

RENEWAL UPGRADE NEW



Units


$ $ % $ % $ %

Year 2 - 2018/2019

RENEWAL UPGRADE NEW



Infrastructure - Bridges

Sub-Total - Infrastructure - Bridges - - - -


Drainage Allocation 571,000 - 0.00% - 571,000 100.00%

- 100.00% - -

- 100.00% - -



Playground Replacement 218,545 218,545 100.00% - -

Reticulation (Eastern Subs Water Supply) 1,213,643 1,213,643 100.00% - -

- 100.00% - -

- 100.00% - -

- 100.00% - -

- 100.00% - -

Sub-Total - Infrastructure - Parks, Gardens & Reserves 1,432,188 1,432,188 - -


Dual Use Paths 150,000 150,000 100.00% - -

- 100.00% - -

- 100.00% - -

Sub-Total - Infrastructure - Footpaths and Cycleways 150,000 150,000 - -

Infrastructure - Airports (Formation Only)

Sub-Total - Infrastructure - Airports (Formation Only) - - - -


- 100.00% - -

- 100.00% - -

- 100.00% - -

- 100.00% - -

- 100.00% - -

Sub-Total - Infrastructure - Airports (Ex Formation) - - - -

Infrastructure - Sewerage

Sub-Total - Infrastructure - Sewerage - - - -


Organics Waste Management Setup 600,000 - 0.00% - 600,000 100.00%

Coastal Reserves Asset Mgmt 47,762 47,762 100.00% - -

Coastal Reserves Management Plan 93,226 - 0.00% - 93,226 100.00%

- 100.00% - -

- 100.00% - -

- 100.00% - -

- 100.00% - -

- 100.00% - -

- 100.00% - -

740,988 47,762 - 693,226

Work in Progress (by asset Class)

Sub-Total - Work in Progress (by asset Class) - - - -

GRAND TOTAL 26,569,004 15,283,329 2,732,180 8,553,495

Units


LandSub-Total - Land - - - -

Investment PropertyFlinders Estate- Future Residential Land Subdivision 2,188,388 - 0.00% - 2,188,388 100.00%

- 100.00% - - - 100.00% - -

Sub-Total - Investment Property 2,188,388 - - 2,188,388

BuildingsDog Pound 250,000 250,000 100.00% - -

- 100.00% - - - 100.00% - -

Sub-Total - Buildings 250,000 250,000 - -

Furniture & EquipmentFurniture & Equipment Replacement 73,792 73,792 100.00% - - IT Equipment 50,000 50,000 100.00% - -

- 100.00% - - Sub-Total - Furniture & Equipment 123,792 123,792 - -

Plant & EquipmentLight Vehicles 654,814 654,814 100.00% - - Heavy Plant 1,770,377 1,770,377 100.00% - - Misc. Plant 178,873 178,873 100.00% - - Heavy Plant (Waste) 142,085 142,085 100.00% - - Fire Fighting Appliances 700,000 700,000 100.00% - - Light Vehicles (Homecare) 67,898 67,898 100.00% - -

- 100.00% - - - 100.00% - - - 100.00% - -




Infrastructure - Roads (Formation Only)Sub-Total - Infrastructure - Roads (Formation Only) - - - -

Infrastructure - Roads (Ex Formation)MRWA RRG Project expenditure 2,002,966 2,002,966 100.00% - 0.00% - 0.00%Municipal Allocation - Rural 5,185,287 3,629,701 70.00% 1,296,322 25.00% 259,264 5.00%Municipal Allocation - Town 674,208 539,366 80.00% 134,842 20.00% - 0.00%State Black Spot Projects - 100.00% - 0.00% - 0.00%Roads to recovery program (70% Rural, 30% Urban) 1,410,190 987,133 70.00% 423,057 30.00% - 0.00%Transport Asset Management 1,000,000 1,000,000 100.00% - - MRWA Direct 393,170 275,219 70.00% 117,951 30.00% -

- 100.00% - - - 100.00% - -


Year 3 - 2019/2020

RENEWAL UPGRADE NEW



Units


Year 3 - 2019/2020

RENEWAL UPGRADE NEW




Infrastructure - DrainageDrainage Allocation 595,000 - 0.00% - 595,000 100.00%

- 100.00% - - - 100.00% - -


Infrastructure - Parks, Gardens & ReservesPlayground Replacement 168,826 168,826 100.00% - - Irrigation/ POS Renewal 250,000 250,000 100.00% - -

- 100.00% - - - 100.00% - - - 100.00% - - - 100.00% - -

Sub-Total - Infrastructure - Parks, Gardens & Reserves 418,826 418,826 - -

Infrastructure - Footpaths and CyclewaysDual Use Paths 192,353 192,353 100.00% - -

- 100.00% - - - 100.00% - -



Infrastructure - Airports (Ex Formation)Airport Asset Mgmt Plan 214,464 214,464 100.00% - -

- 100.00% - - - 100.00% - - - 100.00% - - - 100.00% - -

Sub-Total - Infrastructure - Airports (Ex Formation) 214,464 214,464 - -


Infrastructure - OtherCoastal Reserves Asset Mgmt 49,195 49,195 100.00% - - Coastal Reserves Management Plan 96,023 - 0.00% - 96,023 100.00%New Waste Management Site & Transfer Stations 4,000,000 - 0.00% - 4,000,000 100.00%

- 100.00% - - - 100.00% - - - 100.00% - - - 100.00% - - - 100.00% - -

4,145,218 49,195 - 4,096,023Work in Progress (by asset Class)Sub-Total - Work in Progress (by asset Class) - - - -

GRAND TOTAL 22,307,909 13,197,062 1,972,171 7,138,675

Units



Investment Property- 100.00% - - - 100.00% - - - 100.00% - -


BuildingsBOILC- Heating Upgrade (Gas Efficiency) 500,000 250,000 50.00% 250,000 50.00% -

- 100.00% - - - 100.00% - -

Sub-Total - Buildings 500,000 250,000 250,000 -



Plant & EquipmentLight Vehicles 479,707 479,707 100.00% - - Heavy Plant 1,846,530 1,846,530 100.00% - - Misc. Plant 184,239 184,239 100.00% - - Light Vehicles (Homecare) 118,015 118,015 100.00% - - Fire Fighting Appliances 700,000 700,000 100.00% - -

- 100.00% - - - 100.00% - - - 100.00% - - - 100.00% - -






- 100.00% - - - 100.00% - -


Year 4 - 2020/2021

RENEWAL UPGRADE NEW



Units


Year 4 - 2020/2021

RENEWAL UPGRADE NEW





- 100.00% - - - 100.00% - -


Infrastructure - Parks, Gardens & ReservesPlayground Replacement 173,891 173,891 100.00% - - Soccer Field Development GSG 340,000 - 170,000 50.00% 170,000 50.00%

- 100.00% - - - 100.00% - - - 100.00% - - - 100.00% - -

Sub-Total - Infrastructure - Parks, Gardens & Reserves 513,891 173,891 170,000 170,000

Infrastructure - Footpaths and Cycleways- 100.00% - - - 100.00% - - - 100.00% - -

Sub-Total - Infrastructure - Footpaths and Cycleways - - - -


Infrastructure - Airports (Ex Formation)- 100.00% - - - 100.00% - - - 100.00% - - - 100.00% - - - 100.00% - -



Infrastructure - OtherCoastal Reserves Asset Mgmt 150,671 150,671 100.00% - - Coastal Reserves Management Plan 98,903 - 0.00% - 98,903 100.00%New Waste Management Site & Transfer Stations 3,900,000 - 0.00% - 3,900,000 100.00%

- 100.00% - - - 100.00% - - - 100.00% - -

4,149,574 150,671 - 3,998,903Work in Progress (by asset Class)Sub-Total - Work in Progress (by asset Class) - - - -

GRAND TOTAL 20,761,995 13,255,269 2,461,374 5,045,353

Units





Buildings- 100.00% - - - 100.00% - - - 100.00% - -

Sub-Total - Buildings - - - -



Plant & EquipmentLight Vehicles 738,143 738,143 100.00% - - Heavy Plant 1,919,587 1,919,587 100.00% - - Misc. Plant 189,766 189,766 100.00% - - Heavy Plant (Waste) 814,176 814,176 100.00% - - Light Vehicles (Airport) 41,644 41,644 100.00% - - Fire Fighting Appliances 700,000 700,000 100.00% - - Light Vehicles (Homecare) 99,045 99,045 100.00% - -

- 100.00% - - - 100.00% - -






- 100.00% - - - 100.00% - -


Year 5 - 2021/2022

RENEWAL UPGRADE NEW



Units


Year 5 - 2021/2022

RENEWAL UPGRADE NEW





- 100.00% - - - 100.00% - -


Infrastructure - Parks, Gardens & ReservesPlayground Replacement 179,108 179,108 100.00% - - Infrastructure Renewal 250,000 250,000 100.00% - -

- 100.00% - - - 100.00% - - - 100.00% - - - 100.00% - -


Infrastructure - Footpaths and Cycleways- 100.00% - - - 100.00% - - - 100.00% - -






Infrastructure - OtherCoastal Reserves Asset Mgmt 52,191 52,191 100.00% - - Coastal Reserves Management Plan 101,871 - - 101,871 100.00%

- 100.00% - - - 100.00% - - - 100.00% - - - 100.00% - -

154,062 52,191 - 101,871Work in Progress (by asset Class)Sub-Total - Work in Progress (by asset Class) - - - -

GRAND TOTAL 17,809,828 14,734,830 2,072,388 1,002,610

Units





Buildings- 100.00% - - - 100.00% - - - 100.00% - -




Plant & EquipmentLight Vehicles 615,575 615,575 100.00% - - Heavy Plant 2,026,981 2,026,981 100.00% - - Misc. Plant 195,459 195,459 100.00% - - Light Vehicles (Homecare) 63,760 63,760 100.00% - - Fire Fighting Appliances 700,000 700,000 100.00% - - Heavy Plant (Airport) 82,853 82,853 100.00% - -

- 100.00% - - - 100.00% - - - 100.00% - -





Infrastructure - Roads (Ex Formation)MRWA RRG Project expenditure 2,125,564 2,125,564 100.00% - 0.00% - 0.00%Municipal Allocation - Rural 5,502,668 3,851,868 70.00% 1,375,667 25.00% 275,133 5.00%Municipal Allocation - Town 901,020 720,816 80.00% 180,204 20.00% - 0.00%State Black Spot Projects - 100.00% - 0.00% - 0.00%Roads to recovery program (70% Rural, 30% Urban) 1,515,954 1,061,168 70.00% 454,786 30.00% - 0.00%Transport Asset Management 2,050,000 2,050,000 100.00% - - MRWA Direct 417,235 292,065 70.00% 125,171 30.00% -

- 100.00% - - - 100.00% - -


Year 6 - 2022/2023

RENEWAL UPGRADE NEW



Units


Year 6 - 2022/2023

RENEWAL UPGRADE NEW





- 100.00% - - - 100.00% - -



- 100.00% - - - 100.00% - - - 100.00% - - - 100.00% - -


Infrastructure - Footpaths and CyclewaysDual Use Paths - - 100.00% - -

- 100.00% - - - 100.00% - -



Infrastructure - Airports (Ex Formation)Widen Runway 11/29 from 30m to 45m 10,000,000 3,000,000 30.00% 7,000,000 70.00% -

- 100.00% - - - 100.00% - - - 100.00% - - - 100.00% - -

Sub-Total - Infrastructure - Airports (Ex Formation) 10,000,000 3,000,000 7,000,000 -


Infrastructure - OtherCoastal Reserves Asset Mgmt 53,757 53,757 100.00% - - Coastal Reserves Management Plan 104,927 - 0.00% - 104,927 100.00%

- 100.00% - - - 100.00% - - - 100.00% - - - 100.00% - -


GRAND TOTAL 27,906,869 17,740,981 9,135,828 1,030,060

Units





BuildingsLibrary/Cultural Centre 10,000,000 5,000,000 50.00% 2,500,000 25.00% 2,500,000 25.00%

- 100.00% - - - 100.00% - -

Sub-Total - Buildings 10,000,000 5,000,000 2,500,000 2,500,000



Plant & EquipmentLight Vehicles 527,771 527,771 100.00% - - Heavy Plant 2,093,277 2,093,277 100.00% - - Misc. Plant 201,323 201,323 100.00% - - Heavy Plant (Waste) 391,432 391,432 100.00% - - Fire Fighting Appliances 700,000 700,000 100.00% - - Light Vehicles (Waste) 44,180 44,180 100.00% - - Light Vehicles (Homecare) 424,781 424,781 100.00% - -

- 100.00% - - - 100.00% - -






- 100.00% - - - 100.00% - -


Year 7 - 2023/2024

RENEWAL UPGRADE NEW



Units


Year 7 - 2023/2024

RENEWAL UPGRADE NEW





- 100.00% - - - 100.00% - -



- 100.00% - - - 100.00% - - - 100.00% - - - 100.00% - -


Infrastructure - Footpaths and CyclewaysDual Use Paths - 100.00% - -

- 100.00% - - - 100.00% - -







- 100.00% - - - 100.00% - - - 100.00% - - - 100.00% - -


GRAND TOTAL 29,394,888 21,171,277 4,668,048 3,555,563

Units





Buildings- 100.00% - - - 100.00% - - - 100.00% - -




Plant & EquipmentLight Vehicles 770,178 770,178 100.00% - - Heavy Plant 2,121,452 2,121,452 100.00% - - Misc. Plant 207,363 207,363 100.00% - - Fire Fighting Appliances 700,000 700,000 100.00% - -

- 100.00% - - - 100.00% - - - 100.00% - - - 100.00% - - - 100.00% - -






- 100.00% - - - 100.00% - -


Year 8 - 2024/2025

RENEWAL UPGRADE NEW



Units


Year 8 - 2024/2025

RENEWAL UPGRADE NEW





- 100.00% - - - 100.00% - -



- 100.00% - - - 100.00% - - - 100.00% - - - 100.00% - -


Infrastructure - Footpaths and CyclewaysDual Use Paths - - 100.00% - -

- 100.00% - - - 100.00% - -



Infrastructure - Airports (Ex Formation)- 100.00% - - - 100.00% - - - 100.00% - - - 100.00% - - - 100.00% - - - 100.00% - -




- 100.00% - - - 100.00% - - - 100.00% - - - 100.00% - -

Sub-Total - Infrastructure - Other 163,445 55,370 - 108,075

Work in Progress (by asset Class)Sub-Total - Work in Progress (by asset Class) - - - -

GRAND TOTAL 19,003,938 15,719,421 2,201,194 1,083,324

Units


$ $ % $ % $ %

Land

Sub-Total - Land - - - -

Investment Property

- 100.00% - -

- 100.00% - -

- 100.00% - -


Buildings

- 100.00% - -

- 100.00% - -

- 100.00% - -


Furniture & Equipment

Furniture & Equipment Replacement 87,257 87,257 100.00% - -

IT Equipment 35,000 35,000 100.00% - -

- 100.00% - -

Sub-Total - Furniture & Equipment 122,257 122,257 - -

Plant & Equipment

Light Vehicles 547,245 547,245 100.00% - -

Heavy Plant 2,407,435 2,407,435 100.00% - -

Misc. Plant 213,584 213,584 100.00% - -

Fire Fighting Appliances 700,000 700,000 100.00% - -

Light Vehicles (Airport) 46,870 46,870 100.00% - -

Light Vehicles (Homecare) 206,484 206,484 100.00% - -

- 100.00% - -

- 100.00% - -

- 100.00% - -


Plant & Equipment - Under Lease

Sub-Total - Plant & Equipment - Under Lease - - - -

Intangibles

Sub-Total - Intangibles - - - -


Sub-Total - Infrastructure - Roads (Formation Only) - - - -


MRWA RRG Project expenditure 2,255,665 2,255,665 100.00% - 0.00% - 0.00%

Municipal Allocation - Rural 5,839,475 4,087,633 70.00% 1,459,869 25.00% 291,974 5.00%

Municipal Allocation - Town 743,175 594,540 80.00% 148,635 20.00% - 0.00%

State Black Spot Projects - 100.00% - 0.00% - 0.00%

Roads to recovery program (70% Rural, 30% Urban) 1,606,911 1,124,838 70.00% 482,073 30.00% - 0.00%

Transport Asset Management 2,350,000 2,350,000 100.00% - -

MRWA Direct 442,773 309,941 70.00% 132,832 30.00% -

- 100.00% - -

- 100.00% - -


Year 9 - 2025/2026

RENEWAL UPGRADE NEW



Units


$ $ % $ % $ %

Year 9 - 2025/2026

RENEWAL UPGRADE NEW



Infrastructure - Bridges

Sub-Total - Infrastructure - Bridges - - - -


Drainage Allocation 702,780 - 0.00% - 702,780 100.00%

- 100.00% - -

- 100.00% - -



Playground Replacement 197,693 197,693 100.00% - -

Infrastucture Renewal 900,000 900,000 100.00% - -

- 100.00% - -

- 100.00% - -

- 100.00% - -

- 100.00% - -



Dual Use Paths 200,000 200,000 100.00% - -

- 100.00% - -

- 100.00% - -


Infrastructure - Airports (Formation Only)

Sub-Total - Infrastructure - Airports (Formation Only) - - - -


- 100.00% - -

- 100.00% - -

- 100.00% - -

- 100.00% - -

- 100.00% - -

- 100.00% - -


Infrastructure - Sewerage

Sub-Total - Infrastructure - Sewerage - - - -


Coastal Reserves Asset Mgmt 56,477 56,477 100.00% - -

Coastal Reserves Management Plan 110,237 - 0.00% - 110,237 100.00%

- 100.00% - -

- 100.00% - -

- 100.00% - -

- 100.00% - -

Sub-Total - Infrastructure - Other 166,714 56,477 - 110,237

Work in Progress (by asset Class)

Sub-Total - Work in Progress (by asset Class) - - - -

GRAND TOTAL 19,649,061 16,320,661 2,223,409 1,104,991

Units





Buildings- 100.00% - - - 100.00% - - - 100.00% - -




Plant & EquipmentLight Vehicles 782,864 782,864 100.00% - - Heavy Plant 2,272,617 2,272,617 100.00% - - Misc. Plant 219,991 219,991 100.00% - - Fire Fighting Appliances 700,000 700,000 100.00% - - Light Vehicles (Homecare) 114,820 114,820 100.00% - -

- 100.00% - - - 100.00% - - - 100.00% - - - 100.00% - -






- 100.00% - - - 100.00% - -


Year 10 - 2026/2027

RENEWAL UPGRADE NEW



Units


Year 10 - 2026/2027

RENEWAL UPGRADE NEW





- 100.00% - - - 100.00% - -



- 100.00% - - - 100.00% - - - 100.00% - - - 100.00% - -


Infrastructure - Footpaths and CyclewaysDual Use Paths 200,000 200,000 100.00% - -

- 100.00% - - - 100.00% - -



Infrastructure - Airports (Ex Formation)- 100.00% - - - 100.00% - - - 100.00% - - - 100.00% - - - 100.00% - - - 100.00% - -




- 100.00% - - - 100.00% - - - 100.00% - - - 100.00% - -

170,049 57,607 - 112,442 Work in Progress (by asset Class)Sub-Total - Work in Progress (by asset Class) - - - -

GRAND TOTAL 20,169,610 16,787,150 2,255,368 1,127,091

Long Term Financial Plan: 2018-202879

6. Glossary of TermsA range of terminology is used within the local government sector to describe the components and processes of integrated strategic planning. Terms that have been assigned a specific meaning within the Long Term Financial Plan has been defined below. These definitions aim to best describe an integrated strategic planning component or process in terms of its purpose, without restricting or mandating terminology.

Term Definition

Annual Budget A statutory requirement outlining the financial estimates to deliver the Corporate Business Plan.

Asset Management Plans

Plans that guide the use, acquisition and disposal of assets to make the most beneficial use of their service delivery potential and to manage related risks and costs over their entire life.

Corporate Business Plan

A local governments internal business planning tool that translates Council priorities into operations, within the resources available. The Corporate Business Plan details the services, operations and projects a local government will deliver over a defined period.

Equity Statement

Equity is the net worth of a local government measured as the difference between the total assets and total liabilities as reported in the statement of financial position. The equity statement details equity by its various classes (retained surpluses, cash-backed reserves and revaluation reserves) and reconciles the opening and closing balances of each class of the local governments equity over the reporting period. It also provides a summary of changes in composition of the local governments equity and the causes of those changes.

Financial Capital Refers to the funding capacity of the local government as disclosed in the statement of financial position. This is usually the net difference between current assets and current liabilities.

Forecast Income Statement

A statement that includes revenue and expenditure projections over the 10 year life of the plan.

InfrastructureThe non-current physical asset base of the local government. This can be more specifically defined as the major asset classes that have significant service potential - roads, drains, bridges, footpaths, airport and public buildings.

Integrated Planning & Reporting

A framework for establishing community priorities and linking these to different areas of a local governments functions.

Rate Setting Statement

A statement that details budgeted expenditure and revenue and shows how much rate revenue is required to cover the budget deficit. It can be in a format that includes rates as an income type based on assumptions used in developing the LTFP, to show the extent to which planned services and assets can be funded.

Scenario Modelling Preparation of forecasts or estimates in the LTFP on high, medium and low growth scenarios to understand the impact of variations in factors or assumptions.

Sensitivity Analysis Determines those factors or assumptions that if varied have greater impacts on the LTFP.

Statement of Cash Flows

A statement that shows how changes in a local governments expenses and income affect cash and cash equivalents and breaks the analysis down to operating, investing and financing activities.

Statement of Financial Position

A statement that reports the value of a local governments current and non-current assets, current and non-current liabilities and equity as at a particular date (usually the end of a financial reporting period)

Strategic Community Plan

The strategy and planning document that reflects the longer term (10+ years) community and local government aspirations and priorities.

Workforce Plan A coordinated plan that addresses the human resourcing requirements to deliver local government operations.

For further details on the Community Waste Strategy please

contact the Shire of Esperance Shire of Esperance

Windich Street Esperance WA 6450

PO Box 507

(08) 9071 0666

(08) 9071 0600

[email protected]

www.esperance.wa.gov.au

long term financial plan - shire of esperance...business plan identifies the priorities for the...

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