Long Term Financial Plan

The Long Term Financial Plan (LTFP) is a critical part of Council’s future planning. It is a ten-year rolling plan that informs decisionmaking and demonstrates Council’s resourcing and funding of the Integrated Planning and Reporting Suite of documents. It is a tool used by Council to guide future action and aid priority setting and problem solving. The LTFP contains a set of ten-year financial projections based on a set of assumptions, it is then reviewed and rolled over annually.

Grounded in the principles of sound financial management as outlined in Section 8B of the Local Government Act 1993, the LTFP has its own financial objectives for the organisation in addition to acting as a resource plan.

LTFP Objectives

Annual operating surplus

Strong budget management and governance that achieves a positive operating result before capital grants and contributions and an underlying 1% surplus

Cash backed reserves

Shockproof cash position to meet unknown impacts as they arise

Sustainable ability to maintain assets and undertake capital works projects

Safeguard funding allocations to prioritise renewal of existing assets and identify sources of funding for new infrastructure that accounts for full-life asset management and depreciation

Sustainable ability to recruit, retain, develop and inspire talent

Support a balanced approach to workforce planning to ensure a high-performing organisation

Overall financial sustainability

Legacy decisions that promote intergenerational equity and achieve community aspirations through consistent prudent and responsible financial management

Income Base Scenario SRV Scenario

Forecasting over a ten-year period has its challenges and some assumptions are outside of Council’s control. The LTFP is based on a number of assumptions with the key assumptions detailed in the table.

Council underlying result for each scenario modelled in the LTFP is summarised below.

Council resolved to redirect the airport dividend from daily operations into the Resilience Fund to fund significant projects and initiatives.

*The SRV Scenario – Reduced Independent Recommendation takes into account allocated funds to be spent on the four focus areas as identified through the SRV community engagement program and outlined in Council’s SRV application.

On 26 October 2021, Council endorsed the following key directions for financial sustainability.