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9. LONG TERM FINANCIAL PLAN
long term financial plan
Council’s long term financial plan (LTFP), based on a ten-year time frame, has a preferred target of achieving an operating surplus on a consolidated basis and for the General Fund. Council achieves this result on a consolidated basis in 2022/23 and from 2024/25 onwards, whereas the General Fund achieved this result in 2030/31. This means that Council needs to look at expense savings or extra revenue, or both, to ensure sustainability for the General Fund. The LTFP is based on a rate peg of 2% for 2022/23. A summary of our LTFP is as per the following tables.
LTFP – Consolidated Result
Item 2022/23 (‘000) 2023/24 (‘000) 2024/25 (‘000) 2025/26 (‘000) 2026/27 (‘000) 2027/28 (‘000) 2028/29 (‘000) 2029/30 (‘000) 2030/31 (‘000) 2031/32 (‘000)
Operating Revenues
Rates / Annual Charges 58,720 59,729 60,771 61,834 62,944 64,079 65,240 66,407 67,603 68,837 User Charges and Fees 33,301 34,286 35,235 36,135 36,958 37,788 38,637 39,460 40,293 41,145 Investment Revenues 978 1,947 1,681 1,895 2,070 2,246 2,361 2,414 2,586 3,027 Operating Grants 11,762 9,033 8,811 8,978 9,148 9,320 9,408 9,588 9,770 9,957 Other Revenues 12,920 13,298 13,457 13,730 14,018 14,431 14,606 14,912 15,223 15,663
Sub Total 117,681 118,293 119,955 122,572 125,138 127,864 130,252 132,781 135,475 138,629
Operating Expenses
Employee Costs 29,419 30,007 30,607 31,219 31,843 32,480 33,130 33,793 34,469 35,158 Materials and Contracts 48,003 50,098 47,707 50,115 51,355 52,532 53,436 54,611 55,838 57,937 Borrowing Costs 4,001 4,625 4,499 4,046 3,762 3,534 3,241 2,944 2,647 2,344 Depreciation 24,092 24,233 24,615 25,003 25,396 25,796 26,200 26,612 27,030 27,455 Other Expenses 8,119 8,293 9,588 8,383 8,562 8,762 9,278 9,114 9,305 9,499 Loss on Disposal 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400
Sub Total 116,034 119,656 119,416 121,166 123,318 125,504 127,685 129,474 131,689 134,793
Surplus/(Deficit) 1,647 (1,363) 539 1,406 1,820 2,360 2,567 3,307 3,786 3,836
LTFP - General Fund
Item 2022/23 (‘000) 2023/24 (‘000) 2024/25 (‘000) 2025/26 (‘000) 2026/27 (‘000) 2027/28 (‘000) 2028/29 (‘000) 2029/30 (‘000) 2030/31 (‘000) 2031/32 (‘000)
Operating Revenues
Rates / Annual Charges 35,261 36,105 36,972 37,861 38,847 39,859 40,898 41,963 43,057 44,179 User Charges and Fees 22,683 23,291 23,870 24,389 24,921 25,460 26,008 26,568 27,138 27,716 Investment Revenues 547 911 850 1,058 1,293 1,500 1,576 1,629 1,626 1,922 Operating Grants 11,385 8,653 8,430 8,593 8,759 8,927 9,101 9,278 9,457 9,640 Other Revenues 12,024 12,382 12,520 12,772 13,038 13,429 13,582 13,866 14,154 14,571
Sub Total 81,900 81,342 82,642 84,673 86,858 89,175 91,165 93,304 95,432 98,028
Operating Expenses
Employee Costs 22,214 22,658 23,111 23,574 24,045 24,526 25,017 25,518 26,029 26,550 Materials and Contracts 34,130 33,978 33,995 34,803 35,580 36,395 36,924 37,731 38,517 39,915 Borrowing Costs 1,200 2,019 2,094 1,841 1,758 1,730 1,637 1,541 1,444 1,342 Depreciation 18,202 18,323 18,616 18,914 19,215 19,522 19,832 20,148 20,469 20,796 Other Expenses 5,845 5,992 6,455 6,259 6,395 6,533 7,025 6,817 6,964 7,113 Loss on Disposal 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800
