Murrumbidgee Shire Council 1 | P a g e Murrumbidgee Shire Council Merger Proposal Analysis Kerry McMurray 2 | P a g e Murrumbidgee Shire Council Merger Proposal Analysis Kerry McMurray Contents INTRODUCTION ................................................................................................................................................................................................................................ 6 Project Scope ............................................................................................................................................................................................................................ 6 Outputs ..................................................................................................................................................................................................................................... 7 Exclusions ................................................................................................................................................................................................................................. 7 BACKGROUND .......................................................................................................................................................................................................................... 9 FIT FOR THE FUTURE FINANCIAL INDICATORS ................................................................................................................................................................................. 9 Jerilderie Shire Council (Based On Council Submission) .......................................................................................................................................................... 9 Murrumbidgee Shire Council (Based On Council Submission) .............................................................................................................................................. 10 Final IPART Assessment .......................................................................................................................................................................................................... 10 MEETING THE BENCHMARKS ......................................................................................................................................................................................................... 11 Murrumbidgee V. Murrumbidgee & North Of Yanco Creek V. Murrumbidgee & Jerilderie ................................................................................................. 11 INCOME STATEMENTS ................................................................................................................................................................................................................... 19 Murrumbidgee – 10 year Financial Plan, Fit for the Future Submission ................................................................................................................................ 19 Murrumbidgee(2) – 10 year Financial Plan includes SRV of 5% in 2019/20 and 2021/21..................................................................................................... 20 Murrumbidgee and Part Jerilderie ......................................................................................................................................................................................... 21 Murrumbidgee and Whole Jerilderie ..................................................................................................................................................................................... 22 KEY CONSIDERATIONS.................................................................................................................................................................................................................... 23 FINANCIAL MATTERS .............................................................................................................................................................................................................. 23 FINANCIAL PERFORMANCE FOR THE YEAR 2014/2015 - MURRUMBIDGEE .......................................................................................................................... 23 General Purposes ................................................................................................................................................................................................................... 24 Cash & Investments ................................................................................................................................................................................................................ 25 FINANCIAL PERFORMANCE FOR THE YEAR 2014/2015 – JERILDERIE .................................................................................................................................... 27 3 | P a g e Murrumbidgee Shire Council Merger Proposal Analysis Kerry McMurray General Purposes ................................................................................................................................................................................................................... 27 Liquidity - Available Working Capital ..................................................................................................................................................................................... 28 Cash & Investments ................................................................................................................................................................................................................ 29 The Cash Flow Statement ....................................................................................................................................................................................................... 30 RESERVE COMPARISON .......................................................................................................................................................................................................... 30 ASSETS ............................................................................................................................................................................................................................................ 31 Infrastructure Backlog (Special Schedule 7)(SS7 .................................................................................................................................................................... 31 Roads ...................................................................................................................................................................................................................................... 31 Bridges .................................................................................................................................................................................................................................... 33 Buildings ................................................................................................................................................................................................................................. 34 BUSINESS UNDERTAKINGS ............................................................................................................................................................................................................. 35 Murrumbidgee Shire Council – Land Development – Young Street ...................................................................................................................................... 35 Jerilderie Land Development – Wunnumurra Estate Stage 2 ................................................................................................................................................ 35 Engineering Works Unit......................................................................................................................................................................................................... 35 PLANT REPLACEMENT .................................................................................................................................................................................................................... 36 INCOME SPLIT ................................................................................................................................................................................................................................ 37 North of Yanco Creek - Rates and Grant Funding Summary ................................................................................................................................................. 37 Whole of Jerilderie Merger Proposal - Rates and Grant Funding Summary .......................................................................................................................... 38 OTHER FINANCIAL CONSIDERATIONS ............................................................................................................................................................................................ 39 Water Fund............................................................................................................................................................................................................................