significantly more road asset renewals to be undertaken. Some typical indicators relative to the projections are provided below: Indicator SRV Rate Peg Asset renewals as a percentage of consumption 60.2% 30.9% Asset renewal funding ratio 56% 35% 10 Year AM financial indicator 79% 65% Life Cycle Indicator 63% 55% (life cycle expenditure/life cycle cost) 10 year Financing Indicator 77% 68% (LTFP Budget Expenditure/10 year projected expenditure) 5 year Financing Indicator 91% 75% (LTFP Budget Expenditure/5 year projected expenditure) As indicated by the foregoing, without the SRV the asset consumption is double the rate of renewal. Whilst the SRV will not entirely address this issue it affords Council the opportunity to manage asset consumption. In addition it provides increased opportunity to seek external funding, for example through matching grants, and to continue to address the shortfall/backlog. Other internal cost saving measures that Council will be undertaking over the coming financial years will also enable Council to divert more funds in the future into asset renewal. These indicators show that Council will have significantly lower opportunities to be financially sustainable in the longer term without the SRV. Assessment criterion 1: Need for the variation In the DLG Guidelines, criterion 1 is: The need for and purpose of a different revenue path (as requested through the special variation) is clearly articulated and identified through the council’s IP&R documents, including its Delivery Program and Long Term Financial Plan. Evidence for this criterion include evidence of community need/desire for service levels/project and limited council resourcing alternatives and the Council’s financial sustainability conducted by the NSW Treasury Corporation. In demonstrating this need councils must indicate the financial impact in their Long Term Financial Plan applying the following two scenarios: Baseline scenario revenue and expenditure forecasts which reflects the – business as usual model, and exclude the special variation, and Special variation scenario the result of approving the special variation in – full is shown and reflected in the revenue forecast with the additional expenditure levels intended to be funded by the special variation.
significantly more road asset renewals to be undertaken. Some typical indicators relative to the projections are provided below: Indicator SRV Rate Peg Asset renewals as a percentage of consumption 60.2% 30.9% Asset renewal funding ratio 56% 35% 10 Year AM financial indicator 79% 65% Life Cycle Indicator (life cycle expenditure/life cycle cost) 63% 55% 10 year Financing Indicator (LTFP Budget Expenditure/10 year projected expenditure) 77% 68% 5 year Financing Indicator (LTFP Budget Expenditure/5 year projected expenditure) 91% 75% As indicated by the foregoing, without the SRV the asset consumption is double the rate of renewal. Whilst the SRV will not entirely address this issue it affords Council the opportunity to manage asset consumption. In addition it provides increased opportunity to seek external funding, for example through matching grants, and to continue to address the shortfall/backlog. Other internal cost saving measures that Council will be undertaking over the coming financial years will also enable Council to divert more funds in the future into asset renewal. These indicators show that Council will have significantly lower opportunities to be financially sustainable in the longer term without the SRV. Assessment criterion 1: Need for the variation In the DLG Guidelines, criterion 1 is: The need for and purpose of a different revenue path (as requested through the special variation) is clearly articulated and identified through the council’s IP&R documents, including its Delivery Program and Long Term Financial Plan. Evidence for this criterion include evidence of community need/desire for service levels/project and limited council resourcing alternatives and the Council’s financial sustainability conducted by the NSW Treasury Corporation. In demonstrating this need councils must indicate the financial impact in their Long Term Financial Plan applying the following two scenarios: Baseline scenario – revenue and expenditure forecasts which reflects the business as usual model, and exclude the special variation, and Special variation scenario – the result of approving the special variation in full is shown and reflected in the revenue forecast with the additional expenditure levels intended to be funded by the special variation.
bsc_application_form_part_b_-_special_variation_application_-_2014_-15_v25_final.docx