2014-01-13 Item 6.3 Appendices 1-5

5.3.2 Breakeven average annual rates per rateable property

QTC considers that a balanced operating result is essential to a council’s long term financial
sustainability. Table 22 shows the estimated incremental increase / (decrease) in net rates and
utilities per rateable property that would apply if de-amalgamation was successful and the
Remaining Council was to achieve a balanced operating result (ie, the breakeven rates).

TABLE 22 - CHANGE IN AVERAGE ANNUAL NET RATES AND UTILITIES PER RATEABLE PROPERTY
– BREAKEVEN CASE INCREMENTAL TO BASE CASE

                             FY2013    FY2014    FY2015       FY2016   FY2017
Breakeven case
Remaining Council ($)            29        52        61          76       52
Change from Base Case (%)        2%        3%        3%          4%       3%



The required increases per rateable property in the Breakeven Case when compared to the
Base Case five year forecasts reflect:
     the elimination of operating deficits in the Base Case
     the cost increases attributable to the impact of de-amalgamation, with the upfront costs
      being incurred in FY2013 and other costs expensed in future years, and
     the impact of increased operating expenses associated with a reduction in economies of
      scale and efficiency.




De-amalgamation Analysis of Sunshine Coast Regional Council                               Page 32