Financial Analysis

Project case study

Clients: Sunshine Coast Council, City of Gold Coast, Townsville City Council, Isaac Regional Council, Fraser Coast Regional Council, Gympie Regional Council   

Objective

Many Councils in Australia have a statutory obligation to deliver waste services to the community using Full Cost Pricing (FCP) principles to meet the competitive neutrality policy. Our clients recognised the complexity of the task and a lack of internal expertise.

What we did

We developed a modelling tool which included:
  • FCP model tailored to the local government’s waste business, which is capable of pricing domestic waste charges and landfill gate fees for a 10-year period
  • Working with Council finance and waste professionals to understand the financial and operational aspects of waste collection, disposal, and resource recovery activities
  • User testing and enhancement of the model
  • Integration of the annual budget into the model
  • Ongoing support to Council officers

Outcomes

Resource Innovations has provided our client Councils with:
  • Ability to full cost price all domestic/commercial waste charges and landfill gate fees for a 10-year period
  • Transparent understanding of the cost elements that comprise waste service delivery
  • Scenario simulation of future capital and operational initiatives and the ability to quickly understand the financial impacts of future projects
  • Compliance with competitive neutrality policy and the Local Government Act
Financial-Analysis-by-Resource-Innovations