Page 1

Moree Plains Shire Long Term Financial Plan

2014–2023


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 TABLE OF CONTENTS 1

2

INTRODUCTION .................................................................................................................5 1.1

Objectives .................................................................................................................... 5

1.2

Timeframe ................................................................................................................... 5

1.3

Method......................................................................................................................... 5

1.4

Structure ...................................................................................................................... 6

1.5

Compliance with Integrated Planning and Reporting .................................................... 7

FOUNDATION ONE - PLANNING ASSUMPTIONS ............................................................8 2.1

Planned Model ............................................................................................................. 8

2.1.1

3

2.2

Optimistic Model .......................................................................................................... 9

2.3

Conservative Model ....................................................................................................10

FOUNDATION TWO - REVENUE FORECASTS ...............................................................11 3.1

Rates ..........................................................................................................................11

3.1.1

Ordinary Rates.....................................................................................................11

3.1.2

Special Rates.......................................................................................................11

3.1.3

Rate Pegging .......................................................................................................12

3.1.4

Special Rate Variations........................................................................................13

3.2

Charges ......................................................................................................................17

3.2.1

Water Charges.....................................................................................................17

3.2.2

Sewer and Trade Waste Charges ........................................................................18

3.2.3

Waste Management Charges ..............................................................................19

3.2.4

Developer Charges (Section 64) ..........................................................................20

3.2.5

Development Contributions (Section 94) ..............................................................20

3.2.6

Average Increase in Rates and Charges for 2013/2014 .......................................21

3.2.7

Other Fees...........................................................................................................22

3.3

4

Key Assumptions and Variables............................................................................ 8

Grants .........................................................................................................................23

3.3.1

Roads to Recovery ..............................................................................................23

3.3.2

Financial Assistance Grants.................................................................................27

3.3.3

Roads and Maritime Services (RMS) ...................................................................31

3.4

Investments / Interest ..................................................................................................38

3.5

Borrowings ..................................................................................................................44

3.6

Cash Reserves ...........................................................................................................47

3.6.1

External Reserves ...............................................................................................47

3.6.2

Internal Reserves .................................................................................................49

FOUNDATION THREE - EXPENDITURE FORECASTS ...................................................55 4.1

Salaries, Wages and Employee Oncosts ....................................................................55

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MPSC LONG TERM FINANCIAL PLAN: MARCH 2013

5

6

4.2

Loans / Debt Service Costs.........................................................................................56

4.3

Plant Replacement .....................................................................................................57

4.4

Funding Arrangements ...............................................................................................58

4.4.1

Boomi Baths ........................................................................................................58

4.4.2

Moree Cultural Art Foundation Ltd (Moree Plains Gallery) ...................................59

4.4.3

Tourism Moree.....................................................................................................60

FOUNDATION FOUR – SENSITIVITY ANALYSIS AND FINANCIAL MODELLING ......... 61 5.1

General Fund ..............................................................................................................62

5.2

Gwydir Day Care ........................................................................................................63

5.3

Max Centre .................................................................................................................63

5.4

Water Fund .................................................................................................................64

5.5

Sewer Fund ................................................................................................................65

5.6

Waste Fund ................................................................................................................66

PERFORMANCE MONITORING ....................................................................................... 67 6.1

6.1.1

Revenue Sources ................................................................................................67

6.1.2

Cash / Liquidity Position.......................................................................................68

6.1.3

Operating Result ..................................................................................................71

6.1.4

Debt and Debtor Management .............................................................................73

6.1.5

Re-votes of Expenditure ......................................................................................77

6.1.6

Accuracy / Timeliness of Financial Data / Budget Compliance .............................78

6.2 7

Financial Analysis (Financial Health Check) ...............................................................67

Financial Sustainability (TCorp Analysis) ....................................................................79

Ten Year Budget .............................................................................................................. 80 7.1.1

Section One – Ten Year Budgeted Income Statements - Consolidated ...............80

7.1.2

Section Two – Ten Year Budgeted Income Statements - Detailed .......................80

7.1.3

Section Three – Ten Year Budgeted Cashflow ....................................................80

7.1.4

Section Four – Ten Year Budgeted Income Statements by Function ...................80

7.1.5

Section Five – Ten Year Capital Budget ..............................................................80

7.1.6

Section Six – Ten Year Budgeted Project Summary ............................................80

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MPSC LONG TERM FINANCIAL PLAN: MARCH 2013

1 INTRODUCTION 1.1 Objectives

   

1.2 Timeframe

1.3 Method    

Page 5


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 1.4 Structure

Page 6


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 1.5 Compliance with Integrated Planning and Reporting

        

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MPSC LONG TERM FINANCIAL PLAN: MARCH 2013

2 FOUNDATION ONE - PLANNING ASSUMPTIONS   

2.1 Planned Model All budget figures provided in the LTFP, Operational Plan, Delivery Program and Asset Management Plans are based on this model.

2.1.1 Key Assumptions and Variables Assumption / Variable OVERALL Consumer Price Index (CPI) EXPENDITURE Discretionary Expenditure Non-Discretionary Expenditure Salaries and Employee Oncost Road Construction Index (RCI)

Amount % 3.05 -10.00 3.05 4.00 4.02

Water and Sewer Construction Index (WSCI) Loan Repayments

4.57

Funding Agreements INCOME Interest on cash and investments Financial Assistance Grants (FAG) Roads to Recovery (R2R) RMS Funding Rate Pegging (General Rates) Water Rates Sewer Rates Waste Rates

N/A

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N/A

4.25 3.58 12.00 2.51 - 3.13 3.25 10.00 -10.00 28.00

Areas Affected

All areas not detailed below All areas not detailed below All areas not detailed below All salaries and wages budgets Roads and Facilities Maintenance and project budgets Water and Sewer Maintenance and project budgets Actual debt service cost attributed to relevant fund Tourism, Gallery and Pools General Revenue General Revenue Road Capital Expenditure RMS IPWO and RMCC budgets General Revenue Water Fund General Revenue Sewer Fund General Revenue Waste Fund General Revenue


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 2.2 Optimistic Model            

Assumption / Variable OVERALL Consumer Price Index (CPI) EXPENDITURE Discretionary Expenditure Non-Discretionary Expenditure Salaries and Employee Oncost Road Construction Index (RCI)

Amount %

Areas Affected

2.14

All areas not detailed below

-7.00 2.14 2.80 2.81

All areas not detailed below All areas not detailed below All salaries and wages budgets Roads and Facilities Maintenance and project budgets Water and Sewer Maintenance and project budgets Actual debt service cost attributed to relevant fund Tourism, Gallery and Pools

Water and Sewer Construction Index (WSCI) Loan Repayments

3.20

Funding Agreements INCOME Interest on cash and investments Financial Assistance Grants (FAG) Roads to Recovery (R2R) RMS Funding Rate Pegging (General Rates) Water Rates Sewer Rates Waste Rates

N/A

N/A

5.53 4.65 12.00 2.51 – 3.13 4.22 10.00 -10.00 28.00

General Revenue General Revenue Road Capital Expenditure RMS IPWO and RMCC budgets General Revenue Water Fund General Revenue Sewer Fund General Revenue Waste Fund General Revenue

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MPSC LONG TERM FINANCIAL PLAN: MARCH 2013

2.3 Conservative Model            

Assumption / Variable OVERALL Consumer Price Index (CPI) EXPENDITURE Discretionary Expenditure Non-Discretionary Expenditure Salaries and Employee Oncost Road Construction Index (RCI)

Amount % 3.97 -13.00 3.97 5.20 5.23

Water and Sewer Construction Index (WSCI) Loan Repayments

5.94

Funding Agreements INCOME Interest on cash and investments Financial Assistance Grants (FAG) Roads to Recovery (R2R) RMS Funding Rate Pegging (General Rates) Water Rates Sewer Rates Waste Rates

N/A

Page 10

N/A

2.98 2.51 12.00 2.51 - 3.13 2.28 10.00 -10.00 28.00

Areas Affected

All areas not detailed below All areas not detailed below All areas not detailed below All salaries and wages budgets Roads and Facilities Maintenance and project budgets Water and Sewer Maintenance and project budgets Actual debt service cost attributed to relevant fund Tourism, Gallery and Pools General Revenue General Revenue Road Capital Expenditure RMS IPWO and RMCC budgets General Revenue Water Fund General Revenue Sewer Fund General Revenue Waste Fund General Revenue


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013

3 FOUNDATION TWO - REVENUE FORECASTS     

3.1 Rates

A detailed breakdown of Council’s rates are included in the Operational Plan.

3.1.1 Ordinary Rates

   

3.1.2 Special Rates

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MPSC LONG TERM FINANCIAL PLAN: MARCH 2013

3.1.3 Rate Pegging

For future years budget the rate pegging cap has been forecast at 3.25% per annum. This is an average increase for the years 2001-2014.

FA Grant / CPI / RCI Increases 9.00% 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% -1.00% -2.00%

CPI

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FA Grant

RCI


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 3.1.4 Special Rate Variations

 

Link: A detailed list of approved projects funded by this levy is included in Council’s Annual Report as well as quarterly reports to Council.

      

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MPSC LONG TERM FINANCIAL PLAN: MARCH 2013

Year 2010 2011 2012 2013

Page 14

Special Rate Amount $ 880,000 909,128 939,220 970,308

A detailed list of projects that are to be funded from the special rate variation is detailed over the page as well as the ten year project list.


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013

PROJECTS 2009/2010 Intersection of Bullus Drive and Tycannah Street – Upgrade SR 7 Poison Gate Road – Renew sealed approaches to 2 bridges Gravel Resheeting – Critical access points and floodways SR 3 Goonal Road – Reseal SR 15 Morialta Road – Reseal SR 109 Gurley Creek Road – Reseal SR127 Buckie Road – Reseal TOTAL

$ 50,000 38,310 379,065 65,009 198,938 84,873 63,805 880,000

PROJECTS 2010/2011 Gravel Resheeting – SR6 Telleraga

$ 390,000

Reconstruct - SR101 Seg 15 (jointly funded with R2R)

512,880

TOTAL

902,880

PROJECTS 2011/2012 Gravel Resheeting – SR24 Sandholes Road

$ 402,000

Reconstruct - SR120 Seg 70

200,000

Reconstruct - SR101 Seg 150 (Jointly funded with R2R)

330,675

TOTAL

932,675

PROJECTS 2012/2013 Gravel Resheeting – SR15 Morialta Road

$ 402,000

Rehabilitate – SR106 Various locations (Jointly funded with R2R)

140,000

Rehabilitate - SR110 Various locations

160,000

Reseals - Various locations TOTAL

261,453 963,453

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MPSC LONG TERM FINANCIAL PLAN: MARCH 2013

Further details are provided in the Special Rate Variation application.

Year 2011 2012 2013

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Rural Reseals $ 1,013,000 1,536,000 2,505,000

Urban Reseals $ 0 500,000 680,000

Total Special Rate Amount $ 1,013,000 2,036,000 3,184,000


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 3.2 Charges

3.2.1 Water Charges A detailed breakdown of Council’s Water Charges is included in the Operational Plan.

The following percentage increases for Water Fees and Charges have been included in the LTFP: 2013/2014 10.00% 2018/2019 3.05% 2014/2015 3.05% 2019/2020 3.05% 2015/2016 3.05% 2020/2021 3.05% 2016/2017 3.05% 2021/2022 3.05% 2017/2018 3.05% 2022/2023 3.05%

Water Fund Revenue 7,000,000

12.00%

6,000,000

10.00%

5,000,000

8.00%

4,000,000 6.00% 3,000,000 4.00%

2,000,000 1,000,000

2.00%

0

0.00%

Total Yield

% Increase

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MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 3.2.2 Sewer and Trade Waste Charges A detailed breakdown of Council’s Sewer Charges are included in the Operational Plan.

The following percentage increases for Sewer Fees and Charges have been included in the LTFP: 2013/2014 -10.00% 2018/2019 3.05% 2014/2015 3.05% 2019/2020 3.05% 2015/2016 3.05% 2020/2021 3.05% 2016/2017 3.05% 2021/2022 3.05% 2017/2018 3.05% 2022/2023 3.05%

Sewer Fund Revenue 4,000,000

15.00%

3,500,000

10.00%

3,000,000 5.00%

2,500,000 2,000,000

0.00%

1,500,000

-5.00%

1,000,000 -10.00%

500,000 0

-15.00%

Total Yield

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% Increase


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 3.2.3 Waste Management Charges

A detailed breakdown of Council’s Waste Management Charges is included in the Operational Plan.

      

The following percentage increases for Waste Fees and Charges have been included in the LTFP: 2013/2014 28.00% 2018/2019 3.05% 2014/2015 3.05% 2019/2020 3.05% 2015/2016 3.05% 2020/2021 3.05% 2016/2017 3.05% 2021/2022 3.05% 2017/2018 3.05% 2022/2023 3.05%

4,500,000

Waste Fund Revenue

4,000,000

30.00% 25.00%

3,500,000 3,000,000

20.00%

2,500,000

15.00%

2,000,000 1,500,000

10.00%

1,000,000

5.00%

500,000 0

0.00%

Total Yield

% Increase

For the 2013/2014 financial year Council is introducing Green Waste bins, which will be used for garden waste and organics. More detail is included in Council’s Operational Plan.

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MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 3.2.4 Developer Charges (Section 64)

A detailed breakdown of Council’s Developer Charges are included in the Operational Plan. Council currently levies Developer Charges for Water and Sewer only. Any funds received are placed into reserves.

3.2.5 Development Contributions (Section 94)

A detailed breakdown of Council’s Development Contributions are included in the Operational Plan. Any Development Contributions received are placed into reserves to be spent on those projects listed in the Plan.

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MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 3.2.6 Average Increase in Rates and Charges for 2013/2014

General Rates Water Availability Water Consumption Sewer Availability Sewer Discharge Waste Charges TOTAL $ Increase (Decrease) % Increase (Decrease) $ Increase (Decrease) per week

General Rates Water Availability Water Consumption Sewer Availability Sewer Discharge Waste Charges TOTAL $ Increase (Decrease) % Increase (Decrease) $ Increase (Decrease) per week

Farmland – Dryland $ 7,128 N/A

Farmland – Irrigable $ 15,592 N/A

Business – Moree $ 4,731 270

Business $

N/A N/A N/A 139 7,267

N/A N/A N/A 139 15,731

1,309 565 839 555 8,269

1,309 565 839 555 4,561

506 7.48 9.73

(545) (3.35) (12.69)

244 3.04 4.68

122 2.75 2.35

1,023 270

Residential – Moree $ 1,014 270

Residential – Boggabilla $ 522 270

Residential – Pallamallawa $ 670 270

Residential – Mungindi $ 459 270

786 565 N/A 541 3,176

786 565 N/A 489 2,632

786 N/A N/A 489 2,215

786 565 N/A 489 2,569

198 6.64 3.80

131 5.22 2.51

221 11.06 4.24

129 5.27 2.48

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MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 3.2.7 Other Fees            

Page 22

A detailed breakdown of Council’s Fees and Charges are included in the Operational Plan.


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 3.3 Grants 3.3.1 Roads to Recovery

Program Years

NSW Allocation $

MPSC Allocation $

Increase %

2001-2005

340,000,000.00

4,628,099.00

1.36%

2006-2009

425,000,000.00

5,782,440.00

1.36%

2010-2014

487,580,000.00

6,459,909.00

1.32%

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MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 Year

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Increase %

Rural $

Urban $

0.00 0.00 0.00 0.00 56.18 0.00 0.00 0.00 -10.63 0.00 0.00 0.00 0.00 12.00 0.00 0.00 0.00 0.00 12.00 0.00 0.00 0.00

700,000.00 821,328.00 311,000.00 547,000.00 901,100.00 0.00 64,811.00 1,403,625.00 1,780,695.00 700,000.00 1,350,373.00 353,557.00 0.00 700,000.00 877,000.00 767,000.00 797,000.00 500,000.00 310,000.00 980,000.00 1,000,000.00 1,000,000.00 1,000,000.00

26,000.00 368,500.00 664,350.00 210,000.00 78,821.00 405,583.00 624,000.00 733,285.00 770,441.00 487,000.00 585,000.00 938,425.00 1,291,982.00 591,982.00 570,000.00 680,000.00 650,000.00 950,000.00 1,135,000.00 640,000.00 620,000.00 620,000.00 620,000.00

Total Expended / Budgeted $ 726,000.00 1,189,828.00 975,350.00 757,000.00 979,921.00 405,583.00 688,811.00 2,136,910.00 2,551,136.00 1,187,000.00 1,935,373.00 1,291,982.00 1,291,982.00 1,291,982.00 1,447,000.00 1,447,000.00 1,447,000.00 1,450,000.00 1,445,000.00 1,620,000.00 1,620,000.00 1,620,000.00 1,620,000.00

Yearly Allocation $

R2R Urban/Rural Breakdown 2004-2023 3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

0

Rural

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Urban

925,619.80 925,619.80 925,619.80 925,619.80 925,619.80 1,445,610.00 1,445,610.00 1,445,610.00 1,445,610.00 1,291,981.80 1,291,981.80 1,291,981.80 1,291,981.80 1,291,981.80 1,447,019.62 1,447,019.62 1,447,019.62 1,447,019.62 1,447,019.62 1,620,661.97 1,620,661.97 1,620,661.97 1,620,661.97


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013

For future years budgets the R2R grant is forecast to increase by 12% in 2015 and 2020. This is the same increase as the 2010/2014 program excluding the supplementary payment. Year

CPI Increase 3.05% $

Road Construction Index Increase 4.02% $

RTR Actual Allocation $

Yearly Difference RCI $

Cumulative Difference RCI $

Yearly Difference CP I $

Cumulative Difference CPI $

2001

925,619.80

925,619.80

925,619.80

0.00

0.00

0.00

0.00

2002

982,317.31

934,435.23

925,619.80

8,815.43

8,815.43

56,697.51

56,697.51

2003

1,010,006.79

981,450.84

925,619.80

55,831.04

64,646.46

84,386.99

141,084.50

2004

1,036,377.72

1,029,935.68

925,619.80

104,315.88

168,962.34

110,757.92

251,842.42

2005

1,062,748.66

1,074,012.82

925,619.80

148,393.02

317,355.36

137,128.86

388,971.28

2006

1,089,119.59

1,122,497.66

1,445,610.00

-323,112.34

-5,756.98

-356,490.41

32,480.88

2007

1,132,631.64

1,176,859.46

1,445,610.00

-268,750.54

-274,507.52

-312,978.36

-280,497.49

2008

1,156,365.48

1,223,875.07

1,445,610.00

-221,734.93

-496,242.45

-289,244.52

-569,742.01

2009

1,207,788.80

1,292,929.24

1,445,610.00

-152,680.76

-648,923.20

-237,821.20

-807,563.21

2010

1,224,929.91

1,314,967.81

1,291,981.80

22,986.01

-625,937.19

-67,051.89

-874,615.11

2011

1,263,167.76

1,363,452.66

1,291,981.80

71,470.86

-554,466.34

-28,814.04

-903,429.14

2012

1,307,998.35

1,429,568.36

1,291,981.80

137,586.56

-416,879.78

16,016.55

-887,412.59

2013

1,323,820.91

1,494,214.82

1,291,981.80

202,233.02

-214,646.76

31,839.11

-855,573.48

2014

1,366,050.80

1,541,230.43

1,291,981.80

249,248.63

34,601.87

74,069.00

-781,504.49

2015

1,407,715.35

1,603,033.77

1,447,019.62

156,014.15

190,616.02

-39,304.27

-820,808.76

2016

1,450,650.66

1,667,315.42

1,447,019.62

220,295.81

410,911.83

3,631.05

-817,177.71

2017

1,494,895.51

1,734,174.77

1,447,019.62

287,155.16

698,066.99

47,875.89

-769,301.81

2018

1,540,489.82

1,803,715.18

1,447,019.62

356,695.56

1,054,762.55

93,470.21

-675,831.60

2019

1,587,474.76

1,876,044.16

1,447,019.62

429,024.54

1,483,787.09

140,455.15

-535,376.46

2020

1,635,892.74

1,951,273.53

1,620,661.97

330,611.56

1,814,398.65

15,230.77

-520,145.68

2021

1,685,787.47

2,029,519.60

1,620,661.97

408,857.63

2,223,256.28

65,125.50

-455,020.18

2022

1,737,203.99

2,110,903.33

1,620,661.97

490,241.36

2,713,497.65

116,542.02

-338,478.16

2023

1,790,188.71

2,197,451.10

1,620,661.97

576,789.13

3,296,973.91

169,526.74

-168,951.42

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MPSC LONG TERM FINANCIAL PLAN: MARCH 2013

Roads to Recovery/ CPI and Road Construction Index Increases 2,400,000.00 2,200,000.00 2,000,000.00 1,800,000.00 1,600,000.00 1,400,000.00 1,200,000.00 1,000,000.00 800,000.00

CPI Increase…

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RTR Actual Allocation

Road Construction Index Increase…


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 3.3.2 Financial Assistance Grants

1976 to 1978-79 1979-80 1980-81 to 1984-85

1.52% 1.75% 2.00%

For future years budgets the increase to the Financial Assistance grant has been forecast at 3.58% per annum. This is an average increase for the years 2002-2013.

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MPSC LONG TERM FINANCIAL PLAN: MARCH 2013

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MPSC LONG TERM FINANCIAL PLAN: MARCH 2013

Year

Increase %

GP Component $

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

2.08% 2.61% 2.58% 3.40% 2.15% 2.13% 1.56% 6.65% 6.20% 7.67% 6.30% 4.46% -1.30% 3.58% 3.58% 3.58% 3.58% 3.58% 3.58% 3.58% 3.58% 3.58% 3.58%

2,051,056.00 2,070,888.00 2,087,835.00 2,158,662.00 2,185,559.00 2,199,133.00 2,189,170.00 2,359,230.00 2,569,021.00 2,823,996.00 3,039,673.00 3,176,574.00 3,122,452.00 3,234,235.78 3,350,021.42 3,469,952.19 3,594,176.48 3,722,848.00 3,856,125.95 3,994,175.26 4,137,166.74 4,285,277.31 4,438,690.23

Roads Component $ 1,611,952.00 1,687,716.00 1,767,696.00 1,828,074.00 1,886,707.00 1,959,775.00 2,034,622.00 2,145,398.00 2,214,910.00 2,326,821.00 2,435,394.00 2,542,638.00 2,522,550.00 2,612,857.29 2,706,397.58 2,803,286.61 2,903,644.28 3,007,594.74 3,115,266.63 3,226,793.18 3,342,312.37 3,461,967.16 3,585,905.58

Amount $

Increase $

3,663,008.00 3,758,604.00 3,855,531.00 3,986,736.00 4,072,266.00 4,158,908.00 4,223,792.00 4,504,628.00 4,783,931.00 5,150,817.00 5,475,067.00 5,719,212.00 5,645,002.00 5,847,093.07 6,056,419.00 6,273,238.80 6,497,820.75 6,730,442.74 6,971,392.59 7,220,968.44 7,479,479.11 7,747,244.46 8,024,595.81

95,596.00 96,927.00 131,205.00 85,530.00 86,642.00 64,884.00 280,836.00 279,303.00 366,886.00 324,250.00 244,145.00 -74,210.00 202,091.07 209,325.93 216,819.80 224,581.95 232,621.98 240,949.85 249,575.85 258,510.67 267,765.35 277,351.35

Page 29


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013

FA Grant Breakdown 2004-2023 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0

GP Component

Roads Component

FA Grant / CPI / RCI Increases 9.00% 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% -1.00% -2.00%

CPI

Page 30

FA Grant

RCI


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 Roads and Maritime Services (RMS)

   

  

    

   Page 31


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013         

1718

  

  

17 18

RMS & LGSA Joint Working Party On Road Maintenance Contracts – Discussion Paper on Clustering www.rms.nsw.gov.au

Page 32


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 Year     19

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

increase % -0.69% 31.72% 4.61% 1.86% 4.03% 25.60% 2.93% -0.50% 21.61% -14.80% 2.82% 2.82% 2.82% 2.82% 2.82% 2.82% 2.82% 2.82% 2.82% 2.82%

Allocation $ 428,000.00 563,780.00 589,780.00 600,760.00 625,000.00 785,000.00 808,000.00 804,000.00 977,734.00 833,000.00 857,000.00 881,000.00 906,000.00 932,000.00 958,000.00 985,000.00 1,013,000.00 1,042,000.00 1,071,000.00 1,101,000.00

SIMC/RMCC Allocation 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0

For future years budgets the increase to the Routine Services of the RMCC has been forecast at 2.82% pa (Historical Average).

Page 33


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013

For future years budget the value of Ordered Works has been forecast at $2,481,000. This is the average for the years 2002-2012.

Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Income 1,386,089.65 2,276,590.98 1,709,897.32 1,459,143.30 2,373,570.07 4,620,354.91 2,863,982.00 3,244,721.00 3,533,201.00 2,481,708.16 2,481,708.16 2,481,708.16 2,481,708.16 2,481,708.16 2,481,708.16 2,481,708.16 2,481,708.16 2,481,708.16 2,481,708.16 2,481,708.16

Ordered Works 5,000,000 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0

Page 34


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013

Page 35


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013

   

For future years budget the increase to the Regional Roads Block grant has been forecast as per the table below. This is an average increase of each component (Road, Supplementary and Traffic) for the years 2004-2009.

Page 36


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Road 877,000.00 911,000.00 927,000.06 951,000.08 977,000.08 999,000.08 1,026,000.00 1,058,000.00 1,088,000.00 1,157,000.00 1,193,000.00 1,230,000.00 1,269,000.00 1,309,000.00 1,350,000.00 1,392,000.00 1,436,000.00 1,481,000.00 1,527,000.00 1,575,000.00

Supplementary 212,000.00 212,000.00 212,000.00 212,000.00 212,000.00 212,000.00 212,000.00 212,000.00 212,000.00 212,000.00 212,000.00 212,000.00 212,000.00 212,000.00 212,000.00 212,000.00 212,000.00 212,000.00 212,000.00 212,000.00

Traffic 72,000.00 74,000.00 76,000.00 77,000.00 79,000.00 81,000.00 83,000.00 86,000.00 88,000.00 90,000.00 92,000.00 94,000.00 96,000.00 98,000.00 100,000.00 103,000.00 106,000.00 109,000.00 112,000.00 115,000.00

% increase 3.10% 1.50% 2.06% 2.26% 1.89% 2.24% 2.65% 2.36% 5.12% 2.60% 2.61% 2.67% 2.66% 2.66% 2.71% 2.75% 2.74% 2.72% 2.76%

Total 1,161,000.00 1,197,000.00 1,215,000.06 1,240,000.08 1,268,000.08 1,292,000.08 1,321,000.00 1,356,000.00 1,388,000.00 1,459,000.00 1,497,000.00 1,536,000.00 1,577,000.00 1,619,000.00 1,662,000.00 1,707,000.00 1,754,000.00 1,802,000.00 1,851,000.00 1,902,000.00

BLOCK GRANT 2,000,000 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0

Road

Year 2007 2008 2009 2010 2011 2012 2013

Supplementary

Traffic

Amount 300,000 298,000 400,000 400,000 400,000 400,000 400,000

Page 37


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 3.4 Investments / Interest

   

Type Of Investment Product

Maximum Percentage of Total Portfolio

Bank Accounts

100%

Term Deposits

100%

Variable Rate Deposits

40%

Managed Funds

40%

Collateralised Debt Obligations

50%

Constant Proportion Debt Obligations

50%

Capital Protected Notes

80%

Floating Rate Notes

80%

Page 38


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 Term Deposit (TD) Underlying Asset

Single bank, building society, credit union

Interest Rate

Fixed rate

Liquidity

Set maturity date. Early redemption possible but with penalty.

Capital Guarantee

Generally Not

Collateralised Debt Obligation (CDO) Underlying Asset

Basket of Companies

Interest Rate

Guaranteed Floating Spread

Liquidity

Daily at Secondary Market Value Generally not. However at maturity the amount redeemed is the original face value of the investment and not the current secondary market value.

Capital Guarantee

(Typically between 100-200)

Page 39


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 Floating Rate Note (FRN) Underlying Asset

Single company

Interest Rate

Guaranteed Floating Spread

Liquidity

Daily at Secondary Market Value

Capital Guarantee

Generally not. However at maturity the amount redeemed is the original face value of the investment and not the current secondary market value.

Capital Protected Note (CPN) Underlying Asset

Various

Interest Rate

Floating

Liquidity

Daily at Secondary Market Value

Capital Guarantee

Yes

Page 40


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013

 

Page 41


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013

1,800,000

Interest Rate / Interest Received

10.00%

1,600,000

9.00%

1,400,000

8.00% 7.00%

1,200,000

6.00%

1,000,000

5.00% 800,000

4.00%

600,000

3.00%

400,000

2.00%

200,000

1.00%

0

0.00%

Interest

Interest Rate

Year

Cash and Investments as at 30th June

Interest Rate

Interest

2001 2002 2003 2004 2005

7,598,000 8,348,000 6,146,000 9,188,000 16,643,000

4.96% 3.68% 5.48% 4.17% 4.30%

377,000 307,000 337,000 383,000 715,000

2006 2007 2008 2009 2010 2011

22,131,000 25,002,000 18,239,000 14,336,000 15,697,000 22,901,000

4.87% 6.54% 9.34% 5.54% 4.75% 5.00%

1,078,000 1,634,000 1,703,000 794,000 615,000 1,140,025

2012 2013 2014 2015 2016 2017

16,358,000 19,000,000 19,579,500 20,159,000 20,738,500 21,318,000

4.15% 3.75% 4.25% 4.75% 5.00% 5.12%

908,597 720,000 832,129 957,553 1,036,925 1,091,482

2018 2019 2020 2021 2022 2023

21,897,500 22,477,000 23,056,500 23,636,000 24,215,500 24,795,000

5.24% 5.36% 5.48% 5.60% 5.72% 5.75%

1,147,429 1,204,767 1,263,496 1,323,616 1,385,127 1,385,127

Page 42


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013

  

Page 43


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 3.5 Borrowings

Link: Section 4.2 Loans / Debt Service Costs

Loan Purpose GDC extension

Loan Amount

Loan Term

Annual Cost (approx.)

Landfill Remediation

$450,000 20 years $2,200,000 10 years

$41,000 $304,000

WMF New Cell

$3,900,000 30 years

$300,000

Waste Water Holding Ponds

$2,000,000 30 years

$154,000

$11,000,000* 20 years

$472,000*

Gateway Project

$19,550,000

$1,271,000

*Gateway loan and loan repayments to be offset by sale of land during the course of development.

This project is to commence in:

2013/14

Complete in:

2014/15

Total cost of the project will be:

$450,000.00

To be fully funded by loans:

$450,000.00

Term of the loan will be:

20 years

Loan will begin in:

2014

Maturing in:

2034

Page 44


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013

This project is to commence in:

2013/14

Complete in:

2014/15

Total cost of the project will be:

$2,200,000.00

To be fully funded by loans:

$2,200,000.00

Term of the loan will be:

10 years

Loan will begin in:

2014

Maturing in:

2024

This project is to commence in:

2013/14

Complete in:

2014/15

Total cost of the project will be:

$2,200,000.00

To be fully funded by loans:

$2,200,000.00

Term of the loan will be:

30 years

Loan will begin in:

2014

Maturing in:

2044

Page 45


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013

This project is to commence in:

2013/14

Complete in:

2014/15

Total cost of the project will be:

$2,700,000.00

To be funded by loans:

$2,000,000.00

Term of the loan will be:

30 years

Loan will begin in:

2014

Maturing in:

2044

This project is to commence in:

2013/14

Complete in:

2014/15

Total cost of the project will be: To be funded by loans: Term of the loan will be:

$11,000,000.00 $5,000,000.00 30 years

Loan will begin in:

2014

Maturing in:

2044

Page 46


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 3.6 Cash Reserves

3.6.1 External Reserves

Fund General Water Sewer

Unexpended Balance $ 399,000 1,720,000 147,000

Links: The following sections provide additional information on Council borrowings. Section 3.5 Borrowings Section 4.2 Loans/Debt Service Costs

Page 47


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013

Links: The following sections provide detail of grants received by Council: Section 3.3.1 Roads to Recovery Section 3.3.2 Financial Assistance Grants Section 3.3.3 Roads and Maritime Services (RMS)

Links: The following sections provide detail on special rates and charges applied by Council: Section 3.1.2 Special Rates Section 3.2.1 Water Charges Section 3.2.2 Sewer and Trade Waste Charges Section 3.2.3 Waste Management Charges

Links: The following sections provide detail on contributions collected by Council: Section 3.2.4 Developer Charges (Section 64) Section 3.2.5 Development Contributions (Section 94)

Page 48


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013

Link: Section 3.1.4 Special Rate Variations

Link: Section 3.1.4 Special Rate Variations

3.6.2 Internal Reserves

  

Page 49


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013

Link: Section 7.5 Airports

Page 50


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013

Link: Section 7.1 Water Fund

Link: Section 7.2 Sewer Fund

Page 51


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013

Page 52


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013

Link: Section 6.1.5 Re-votes of Expenditure

Page 53


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013

Page 54


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013

4 FOUNDATION THREE - EXPENDITURE FORECASTS 4.1 Salaries, Wages and Employee Oncosts

     

Year 2004 2005 2006 2007 2008 2009 2010 2011 2012

Salaries and Wages 8,541,000 8,396,000 9,099,000 8,747,000 8,487,000 9,568,000 10,601,000 10,127,000 10,877,000

Employee Leave Entitlements (ELE) 1,364,000 1,774,000 1,246,000 2,085,000 2,471,000 2,070,000 2,061,000 2,388,000 2,452,000

Total

Percentage Increase

9,905,000 10,170,000 10,345,000 10,832,000 10,958,000 11,638,000 12,662,000 12,515,000 13,329,000

2.68% 1.72% 4.71% 1.16% 6.21% 8.80% -1.16% 6.50%

Link: Further details about Council’s staff costs are included in the Workforce Plan.

Page 55


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 4.2 Loans / Debt Service Costs

Link: Section 6.1.4 Debt and Debtor Management

Total Loan Repayments by Fund 5,000,000.00 4,500,000.00 4,000,000.00 3,500,000.00 3,000,000.00 2,500,000.00 2,000,000.00 1,500,000.00 1,000,000.00 500,000.00 0.00

General Fund

25.00%

Sewerage Fund

Water Fund

Total

Debt Service Ratio by Fund

20.00%

15.00%

10.00%

5.00%

0.00%

General Fund

Page 56

Sewerage Fund

Water Fund

Total


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 4.3 Plant Replacement

Page 57


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 4.4 Funding Arrangements   

4.4.1 Boomi Baths

Year

CPI (%)

2013

Page 58

Value 68,138

2014

3.05

70,312

2015

3.05

72,457

2016

3.05

74,666

2017

3.05

76,944

2018

3.05

79,291

2019

3.05

81,709

2020

3.05

84,201

2021

3.05

86,769

2022

3.05

89,416

2023

3.05

92,143


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 4.4.2 Moree Cultural Art Foundation Ltd (Moree Plains Gallery)

Year

CPI (%)

2013

Value 141,678

2014

3.05

146,198

2015

3.05

150,657

2016

3.05

155,252

2017

3.05

159,987

2018

3.05

164,866

2019

3.05

169,895

2020

3.05

175,077

2021

3.05

180,416

2022

3.05

185,919

2023

3.05

191,590

      

Page 59


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 4.4.3 Tourism Moree

Year

CPI (%)

2013

        

Page 60

Value 413,817

2014

3.05

427,018

2015

3.05

440,042

2016

3.05

453,463

2017

3.05

467,294

2018

3.05

481,546

2019

3.05

496,233

2020

3.05

511,368

2021

3.05

526,965

2022

3.05

543,038

2023

3.05

559,600


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013

5 FOUNDATION FOUR – SENSITIVITY ANALYSIS AND FINANCIAL MODELLING

  

  

Page 61


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 5.1 General Fund TO BE INCLUDED IN NEXT VERSION OF THE LTFP

Page 62


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013

5.2 Gwydir Day Care

TO BE INCLUDED IN NEXT VERSION OF THE LTFP

5.3 Max Centre

TO BE INCLUDED IN NEXT VERSION OF THE LTFP

Page 63


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 5.4 Water Fund

TO BE INCLUDED IN NEXT VERSION OF THE LTFP

Page 64


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 5.5 Sewer Fund

TO BE INCLUDED IN NEXT VERSION OF THE LTFP

Page 65


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 5.6 Waste Fund

TO BE INCLUDED IN NEXT VERSION OF THE LTFP

Page 66


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013

6 PERFORMANCE MONITORING 6.1 Financial Analysis (Financial Health Check) 6.1.1 Revenue Sources

      

Source of Total Ordinary Revenue Before Capital User Charges and Fees 21% Investment 2%

Rates and Charges 42%

Grants 27%

Other 2%

Contributions and Donations 6%

Page 67


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 6.1.2 Cash / Liquidity Position

Unrestricted Current Ratio 3.50 2.75 2.46

2.71

2.28

2.50 Ratio

1.87

2.03

2.00 1.50 1.00 0.50 0.00

Financial Year

Page 68

3.10

3.07

2.83

3.00

2.55


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013

Available Cash Position (Available Cash Assets) 16,000

14,398

13,147

Amount ('000)

14,000 12,000

10,670

10,000

9,686

7,857

7,979

8,500

7,044

8,000 6,000

4,068

4,000 2,000

1,402

0

Financial Year

Availability of Cash Assets as a % of Revenue (Available Cash Assets) 40.00%

36.21%

35.00%

29.51%

Percentage

30.00%

23.95%

25.00%

23.19%

21.22%

20.00%

22.76%

17.27% 15.44%

13.90%

15.00% 10.00%

4.97%

5.00% 0.00%

Financial Year

Page 69


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013

Available Cash Position (Unrestricted Available Cash Assets) 8,000

7,362

Amount ('000)

7,000 6,000

5,238

5,000

3,908

4,000

2,779 2,800

3,000 2,000 1,000

1,357

1,283

1,214 453

9

0 Financial Year

Availability of Cash Assets as a % of Revenue (Unrestricted Available Cash Assets) 20.00%

18.52%

Percentage

15.00% 11.76% 10.55%

10.00% 6.53% 6.28%

4.64%

5.00%

2.98% 0.03%

1.32%

0.00%

Financial Year

Page 70

2.33%


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 6.1.3 Operating Result

Result from Ordinary Operations before Capital Grants and Contribution 4,000

2,282

Amount ('000)

2,000

768

2,239 860

467

0 -2,000

-526 -1789

-2,000

-4,000

-4,045

-6,000 -8,000

-6,716

Financial Year

Page 71


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013

Result from Ordinary Operations 5,495 4,847

5,000

4,023

Amount ('000)

3,078

3,000

2,896 2,145

1,798

821

1,000 -1,000

-208

-3,000 -3,916

-5,000

Financial Year

Page 72


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 6.1.4 Debt and Debtor Management

Link: Section 4.2 Loans / Debt Service Costs Section 3.4 Borrowings

Page 73


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 Debt Service Ratio 7.62%

8.00% 6.65%

7.00% Percentage

6.00%

6.44%

7.02%

6.96% 6.45%

6.22% 5.05%

5.00% 4.00% 3.00% 2.00% 1.00% 0.00%

Financial Year

Page 74

6.88%

6.65%


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013

Outstanding Debtors Total 20.00% 18.00%

Percentage

16.00%

18.63%

17.41% 14.97%

14.87% 12.70% 13.29%

14.00% 12.00%

14.41% 11.04% 12.22%

9.57%

10.00% 8.00% 6.00% 4.00% 2.00% 0.00%

Financial Year

Page 75


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013

Outstanding Rates and Annual Charges 12.00%

11.29%

11.69% 9.74%

9.74%

10.00%

9.15%

9.09% 7.89%

8.27%

Percentage

8.00% 6.00% 4.00% 2.00% 0.00%

Financial Year

Page 76

9.63% 8.42%


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 6.1.5 Re-votes of Expenditure

Re-votes of Expenditure 1.80% 1.60%

Percentage

1.40%

1.68%

1.67%

1.32%

1.20%

1.04%

1.00% 0.66%

0.80% 0.60%

0.29%

0.40% 0.20%

0.75%

0.00%

0.00%

0.00%

0.00%

Financial Year

Page 77


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 6.1.6 Accuracy / Timeliness of Financial Data / Budget Compliance

INDICATOR Unqualified Audit Report** Financial Statements Lodged within deadlines Monthly Management Reports Quarterly Statutory Reports Annual Statutory Reports Minimum 3 year budget Monthly budget to actual result analysis The RAO formerly report to Council on sign off of Statements Internal Audit Committee TOTAL TICKS

Page 78

2012

2011

2010

2009

2008

        

        

        

        

        

8

8

7

7

7


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013 6.2 Financial Sustainability (TCorp Analysis)

TO BE INCLUDED IN NEXT VERSION OF THE LTFP

Page 79


MPSC LONG TERM FINANCIAL PLAN: MARCH 2013

7 Ten Year Budget 7.1.1 Section One – Ten Year Budgeted Income Statements Consolidated 7.1.2 Section Two – Ten Year Budgeted Income Statements - Detailed 7.1.3 Section Three – Ten Year Budgeted Cashflow 7.1.4 Section Four – Ten Year Budgeted Income Statements by Function 7.1.5 Section Five – Ten Year Capital Budget 7.1.6 Section Six – Ten Year Budgeted Project Summary

A detailed breakdown of the 2013/2014 – 2016/2017 budget is included in the Operational Plan and Delivery Program.

Page 80


Moree Plains Shire Council Level 2 Max Centre Arcade 30 Heber Street Moree NSW 2400

Telephone: (02) 6757 3222 Fax: (02) 6752 3934 Email: council@mpsc.nsw.gov.au

Postal Address: PO Box 420 Moree NSW 2400

Web: www.mpsc.nsw.gov.au Facebook: www.facebook.com/MoreePlainsShireCouncil Twitter: https://twitter.com/moreeshire

Long term financial plan 2014 2023 adopted 27 6 2013[1]  

Moree Plains Shire Long term financial plan 2014 2023

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