Fiona Conlon

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Findings - Income• Water Rates• Income had been too low for years• Changing Water Tariff (-$1.0M), new tariff concessions ( -$1.0M)• Increasing Water Usage charges resulted in reduced waterconsumption and reduced income (-$0.6M)• Development Income• Straight line, “high growth” unrealistic growth rate used for years• down from $3.7M in 2004/05 to $1.0M in 2008/9 and projectedto be only $0.7M in 2009/10• More debt and less interest• a new $12m loan and had lost $1.6M reserves interest.• No more State Government Subsidies
Findings - ExpenditureAfter building over $120 million of Infrastructure• Asset Value : $434M (Now $454M)• Asset O&M: up 25%• Depreciation: Increase from $3M to $7M pa• Renewals: Should spend $3-4 M pa• External costs: Electricity up $350k, raw water licence up $60k,environmental monitoring up $250k• Capital Works: need a full list or have a “base flow” of capital works.• Indexing: What indexing ?
Page 1 and 2: Asset Management“Harnessing the S
Page 3 and 4: Setting the Scene…
Page 5: All combined to create“The Perfec
Page 9 and 10: Typical 10 year Financial ForecastT
Page 11 and 12: Then it didn’t …We went broke
Page 13 and 14: Projected Cash flow - Current Forec
Page 15 and 16: The Cost of ProgressExpenditureInco
Page 17 and 18: Projected Cash flow - 2011 DSP incr
Page 19 and 20: Projected Cash flow - 2015 DSP only
Page 21 and 22: Part 2“Assets .. shudder”Deprec
Page 23 and 24: Asset Consumption Curves

Fiona Conlon

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