3000 kb - Mid Western Regional Council - NSW Government

Finance
This section details Mid-Western Regional Council’s
objectives relating to the business operation and
financial management of the sewerage funds
The purpose of the Financial Plan is to enable Council to determine the revenues needed
to meet the Levels of Service over the long term and effectively manage the cash flow.
Legislation requires separate accounting for sewerage services and elimination of cross
subsidisation with other of Council’s activities where possible. Any cross subsidy deemed
necessary by Council should be explicitly noted.
Commitment by Council to provide the Levels of Service described in this document
requires collection of revenues of the order shown in the detailed tables and graphs in
Part C. Estimates of the cost of activities in the action plan have been modelled using the
NSW Financial Model issued by the Department of Energy, Utilities and Sustainability and
represent the best projection of future costs possible at this time. Actual billings will
depend on the levels of developer charges and pricing structure adopted.
Generally, recurrent operating costs should be covered by the annual sewerage charges.
Capital funds are drawn from the following four sources:
• Developer charges;
• Government grants; and
• Cash and borrowings.
There is pressure to provide a suitable financial plan because DEUS requires that the
existing financial plans be updated to evaluate the impacts of the proposed capital works
on the sewerage charges.
In accordance with the DEUS Financial Planning Guidelines, Council will develop its longterm
financial models and establish a steady price path. This will be used to set the
pricing structure in accordance with the Best Practice Management Guidelines.
Council will update its financial models annually as part of its ongoing planning review
process.
Mid-Western Regional Council Part B - Strategic Plan Page 75
Strategic Business Plan for Sewerage