2014-01-13 Item 6.3 Appendices 1-5

TABLE 6 – SUMMARY OF KEY FINANCIAL INFORMATION
                                      Actual      Actual       Actual
                                     FY2010      FY2011       FY2012      FY2013      FY2014      FY2015       FY2016      FY2017

Income Statement items ($000)

Net rates and utilities             359,113     247,595      249,732     263,237     281,760      303,798     322,635     343,855

Grants and subsidies                 21,514       20,652      22,061      13,857       13,586      13,587      13,591       13,595
Total recurrent revenue             478,850     435,235      434,734     415,958     435,303      461,684     483,730     508,634

Employee expenses                   164,393     150,144      155,033     148,844     151,081      157,816     164,386     171,229
Materials and services costs        185,103     169,932      168,463     171,233     184,138      195,939     205,983     216,556

Depreciation                        102,698       63,492      69,233      72,495       75,813      81,236      88,243       95,191

Interest expense                      7,422       11,866      12,564      13,863       15,651      16,734      17,383       16,720
Total recurrent expenses            470,646     405,833      417,295     407,852     428,352      453,987     479,249     504,223

Operating surplus/(deficit)           8,204       29,402      17,439       8,106        6,951       7,697       4,481        4,411



Balance Sheet items ($000)

Cash / (Overdrafts)                 334,562     268,956      238,978     226,671     213,706      185,787     155,046     124,502

Property, plant and equipment     3,491,748    3,699,974    4,017,225   4,214,750   4,415,452   4,625,723   4,818,626   5,006,335
Total QTC borrowings                188,502     201,501      231,201     261,930     281,452      294,296     285,856     259,260



Cashflow items ($000)

Gross capital expenditure           212,210     188,492      170,989     145,769     145,149      154,419     138,204     134,472

New borrowings                       37,998       23,143      40,888      44,150       41,939      44,420      33,333       23,980

Note: Historical figures include share of profits in Unitywater in total recurrent revenue for FY2011 and FY2012. Forecasts include
Unitywater dividend, interest and tax equivalents amounts

Key points to note from Table 6 include:
 Water and sewerage assets transferred to Unitywater on 1 July 2010. From FY2011 revenue
  from net rates and utilities and corresponding operating expenses were reduced and
  replaced with a share of profits in Unitywater, in addition to interest income and tax
  equivalents payments.
 Within total recurrent revenue is interest received by SCRC on shareholder loans to
  Unitywater. This revenue is expected to reduce from FY2014, as the terms of these loans
  are renegotiated and reflect current lower market interest rates. In addition, SCRC can
  expect to receive reduced dividends as a result of the revised treatment of contributed assets
  within the context of full cost pricing.
 Operating grants and subsidies are forecast to decrease significantly in FY2013 due to the
  reduction in Financial Assistance Grants (FAGs) and the wind down of works associated
  with recent natural disasters.
 Employee costs decrease in FY2013 due largely to targeted savings expected to crystallise
  from benefits of amalgamation. With staff numbers expected to increase by around 10 FTE
  each year, this supports the very modest salary increases forecast.




De-amalgamation Analysis of Sunshine Coast Regional Council                                                               Page 13