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Government

Local council financial model, built free.

A three-statement Excel model for a local council / municipality, built from your own figures and checked to balance.

  • Free account
  • No card
  • Usually ready within the hour

We use generative AI in parts of our process, so mistakes can occur. Every model should be checked by a person before it is relied on. Read more

The business

Funds local services and infrastructure from rates (often capped), annual service charges, user fees, government grants and developer contributions, and must renew a large base of roads, drainage, buildings and other assets carried at fair value.

See the sampleHow the model works

In short

  • 01

    Three linked statements

    Income statement, balance sheet and cash flow, linked in every period.

  • 02

    Valued two ways

    Discounted cash flow and trading multiples, side by side.

  • 03

    Monthly to annual

    Monthly, quarterly, half-yearly or annual periods, for up to 30 years.

  • 04

    Checked every period

    A Checks sheet shows the balance sheet balances and the cash reconciles.

The sample

The sample, as Excel draws it.

Built by the same system and checks as yours: its structure and its inputs, ready for your own figures.

Annual · 10 years · Low detail
Local council sample model.xlsx
The How It Works sheet of the sample local council model

The sample describes no real business. Yours is calibrated to your own figures, so its results are your business’s.

How it works

How the model works for a local council.

  1. How it earns revenue3 formulas
    Infrastructure assets, capital works and depreciation · All infrastructure asset classes
    Capital worksRenewal worksUpgrade worksNew works
    Infrastructure assets, capital works and depreciation · All infrastructure asset classes
    Additions to the classCapital worksAssets contributed by developers (not modelled)
    Infrastructure assets, capital works and depreciation · All infrastructure asset classes
    Revaluation incrementRevaluation of existing assetsRevaluation of program works
  2. What drives its costs3 formulas
    Airspace, cell development and closure provisions · All landfills
    Closing net book valueOpening net book valueCell development capexLandfill amortisation
    Airspace, cell development and closure provisions · All landfills
    Provision accrued (operating charge)Tonnes landfilledfrom landfill volumes and gate feesClosure accrual per tonne landfilled at the start dateRate escalation index
    Operating expenses · Across the business
    Total FTEsOperations and deliverySales and marketingTechnologyFinance, HR and administration
  3. What it invests in3 formulas
    Leases
    Principal elements of lease paymentsLease payments (cash)from cashInterest on lease liabilities
    Leases
    Closing lease liabilitiesLease 1Lease 2Lease 3Lease 4Lease 5Lease 6
    Leases
    Lease payments (cash)Lease 1Lease 2Lease 3Lease 4Lease 5Lease 6
  4. How profit becomes cash3 formulas
    Working capital
    Trade receivablesRevenuefrom statementsDebtor daysDays in period
    Working capital
    InventoryDirect costs (positive)from statementsInventory daysDays in period
    Working capital
    Trade payablesCash operating costs (positive)from statementsCreditor daysDays in period
What it covers

12 parts, each one tested.

Every part is a tested building block with its own checks: yours is put together from the ones your business needs.

  • CPI forecastConsensus curve with long-run anchor
  • Operating expensesHeadcount build by function
  • Working capitalFull working capital
  • Discounted cash flow valuationDCF on free cash flow to the firm
  • Multiples valuationEV / EBITDA multiple
  • Capital grants and contributionsFunding mix by capital projectGrants to build or acquire assets the entity will control, recognised as income as the asset is built (AASB 1058 paragraphs 15–16; a conditional-grant liability under IPSAS 23 and similar standards), with unspent amounts held as a liability and the income kept below the operating result. Used by councils, agencies, health services, charities, clubs and housing providers.
  • LeasesLease register
  • Interest-rate forecastMarket forward curve
  • Asset renewal requirement and backlogAnnual consumption as the requirementThe renewal spend each asset class needs to hold its target service level (from the asset management plan) and the backlog of assets below a satisfactory standard — the basis of the renewal gap.
  • Infrastructure assets, capital works and depreciationCapital works program with straight-line depreciationRoll-forward of each asset class — capital works split into renewal, upgrade and new, assets contributed by developers, depreciation and revaluations — carried at fair value (current replacement cost) under AASB 116 and AASB 13 or IPSAS 17. Revaluation increments go to the asset revaluation reserve (other comprehensive income).
  • Landfill volumes and gate feesCapped by licence and airspace
  • Airspace, cell development and closure provisionsAmortisation and closure accrual per tonne
Key numbers

The numbers it tracks.

  1. 01operating result before capital grants
  2. 02operating surplus ratio
  3. 03own-source revenue ratio
  4. 04asset renewal funding ratio
  5. 05infrastructure backlog
  6. 06net financial liabilities ratio
  7. 07unrestricted cash
  8. 08rate increase required
Used for

What it is used for.

Also used for
  • Scenarios and sensitivities
Related models

More in government.

Every not-for-profit and government model

Looking for a local council financial model template? Ours arrives built for your business, with your figures in it.

See a finished model, sheet by sheet

The sample is built on illustrative figures and describes no real business. Models are calculations prepared from the information you provide. They are not financial advice and must be independently verified. See our terms.