2014-01-13 Item 6.3 Appendices 1-5

2.3        Financial analysis

2.3.1 Key assumptions

Table 5 outlines key assumptions applied to the financial forecasts used by QTC to assess the
financial viability of the Existing Council.

TABLE 5 – KEY ASSUMPTIONS
                                    Actual          Actual       Actual
                                   FY2010          FY2011       FY2012       FY2013        FY2014       FY2015       FY2016       FY2017
Number of rateable
                                  149,510         151,338      152,532       154,667      156,833      159,028       161,255      163,512
properties

Growth in rateable
                                        n/a          1.2%          0.8%         1.4%         1.4%          1.4%         1.4%        1.4%
properties

Growth in net rates and
                                      9.6%        (31.1%)          0.9%         5.4%         7.0%          7.8%         6.2%        6.6%
utilities revenue

Net rates & utility charges
                                     2,402           1,636        1,637        1,702         1,797        1,910        2,001        2,103
per rateable property ($)


Staff numbers (FTE)                  2,529           2,256        1,939        1,949         1,958        1,968        1,978        1,988


Note: The reduction in net rates and utility charges per rateable property reflects the transfer of water and sewerage services
responsibilities to Unitywater.

Key points to note from Table 5 include:
       Growth in net rates and utilities revenue, not attributable to the growth in rateable
        properties, is above current CPI in each year of the forecast.
       Staff numbers are assumed to increase in-line with the forecast growth in rateable
        properties as indicated by a consistent ratio of employees per rateable property.

2.3.2 Forecast financial results

Table 6 provides a summary income statement, balance sheet and cashflow for the Existing
Council. It should be noted that since SCRC submitted its forecast to QTC, further
information became available resulting in a reduction to forecast revenue. QTC has
subsequently adjusted the forecasts provided by the Existing Council for the purposes of this
report.




De-amalgamation Analysis of Sunshine Coast Regional Council                                                                       Page 12