Revenue Forecasts
In determining the likely revenue that will be available to meet the community’s long-term objectives, we have considered the following:
Capacity for rating
As this is a major component of Council’s revenue base, the planning process will continue to include an assessment of the community’s capacity and willingness to pay rates and whether there is potential for changes to the rate path. In making that judgement, Council will review the potential to reduce the reliance on rates through:
- Increased revenues from other sources
- The projected impact of the rate cap
- Changes in rating revenues from changing demographics and industry makeup
- Opportunities for a special variation to general income
- Any need to increase the reliance on rating due to a reduction of revenues from other sources such as a decline in grants and subsidies
Fees and charges
A number of the services provided by Council are offered on a user pays basis. In preparing the Long Term Financial Plan Council has considered possible future income from fees and charges, including opportunities to reduce reliance on other forms of income.
Grants and subsidies
Council receives an annual Financial Assistance Grant allocation from the Commonwealth and also receives other grants for specific programs. In preparing the Long Term Financial Plan Council has assumed that it will continue to receive grants. Should these grants and subsidies be reduced, Council’s ability to provide the same level of service will be impacted.
Borrowings
Council has commenced construction of the renewal of access roads at the Kimbriki Waste Landfill site. It is anticipated that the renewal of the access roads will cost $12.5m. Council is planning to borrow $7.815m for the Local Infrastructure Renewal Scheme (LIRS) component of the project and is proposing to borrow for the remaining component of the works in 2015/16 in order to maintain financial sustainability over the 10 years of the Long Term Financial Plan. If Council has not executed the borrowings for the LIRS component of the project in 2014/15 then borrowings of $12.5m will be undertaken in 2015/16. Council will continue to review the need to borrow for major infrastructure projects. Spreading these costs over a number of years facilitates inter-generational equity and smooths out long term expenditure peaks and troughs.