2014-01-13 Item 6.3 Appendices 1-5

Table of contents

1     Executive summary                                                                    2
      1.1   Financial impact of de-amalgamation                                            2
      1.2   Assessment of financial viability – using QTC’s Base Case                      4
      1.3   Financial effect per rateable property – Base Case versus Breakeven Case       6
      1.4   Key issues for consideration                                                   7

2     Existing Council profile                                                             9
      2.1   Regionally significant assets and services                                     9
      2.2   Financial viability assessment of Existing Council                            11
      2.3   Financial analysis                                                            12

3     Proposed de-amalgamation arrangement                                               15
      3.1   Proposed de-amalgamation profile                                              15
      3.2   Proposed de-amalgamation and incremental annual recurring costs               15
      3.3   Proposed balance sheet separation                                             19

4     Financial viability assessment of Proponent Council                                21
      4.1   Proposed approach for regionally significant assets and services              21
      4.2   Financial analysis                                                            22
      4.3   Financial effect per rateable property – Base Case versus Breakeven Case      25

5     Financial viability assessment of Remaining Council                                27
      5.1   Proposed approach for regionally significant assets and services              27
      5.2   Financial analysis                                                            29
      5.3   Financial effect per rateable property – Base Case versus Breakeven Case      31

Disclaimer                                                                               33

Appendix 1: Forecast assumptions                                                         34

Appendix 2: Existing Council income statement                                            35

Appendix 3: Proponent Council income statement                                           36

Appendix 4: Remaining Council income statement                                           37

Appendix 5: QTC’s sustainability rating definitions                                      38

Appendix 6: Key financial ratios definitions and benchmarks                              40




De-amalgamation Analysis of Sunshine Coast Regional Council                            Page 8