Long Term Financial Plan and Annual Business Plan

The 2024/25 Long Term Financial Plan and Annual Business Plan (LTFP & ABP) and budget was adopted by Council on Monday 24 June 2024. The budget delivers an operating surplus to ensure our financial position is sustainable and equitable between generations of ratepayers, and builds capacity for the future. The 2024/25 budget delivers an operating surplus of $3.893M; gross infrastructure investment of $64.5M (including $34.6M of asset renewal) with a net cost of $57M including grants; moderate and sustainable levels of debt, with net financial liabilities of $94.7M or 59.4% of total operating revenue; and an average rate increase of 6.2% on all properties.

Purpose

The LTFP & ABP details Council’s services, including new services and projects, together with their financial impacts. It provides comprehensive information so that the community can consider the budget and how it aligns to the City Plan 2035. An Executive Summary provides a snapshot of the LTFP & ABP, and gives guidance as to where more information is available.

Average Rate Increase

The 2024/25 average rate increase is 6.2% for residential properties and commercial and industrial properties. Over the life of the long term financial plan rates growth from the increase in the number of assessments is anticipated at 0.50%, while increased rates revenue from other development, activity is estimated to be 0.50%. Over the long-term average rates are planned to increase by CPI+0.6%. As the 2024/25 inflation is based on CPI of 4.8% the average rate increase under the approach of plus 0.6% would be 5.4%, however Council has endorsed a 6.2% increase to support expansions in service delivery and escalating depreciation costs Further information about rates is contained in the Rating Strategy and Policy on pages 124 to 127 and at Appendix B – Uniform Presentation of Rates Revenue.

Operating Surplus

This year, Council will deliver an Operating Surplus of $3.893M reflecting a 2.4% Operating Surplus Ratio. Further information is available in the Budgeted Financial Statements and Analysis on pages 46 to 51.

Financial Sustainability

Being financially sustainable means having:

• The ability to have consistent services into the future

• Infrastructure, like roads, continuing to be maintained at an appropriate level

• Current ratepayers pay the costs associated with the services consumed

• New infrastructure provided to meet community expectations, balanced against increases in costs

We measure financial sustainability through three indicators. The Long Term Financial Plan (pages 16 to 21) shows that Council is budgeting and planning to be sustainable over the coming 10 year period.

Service Provision

The budget delivers an operating surplus to ensure Council’s financial position is sustainable and equitable between generations of ratepayers, and builds capacity for the future. The 2024/25 budget delivers:

• An operating surplus of $3.893M
• Gross capital investment of $64.5M (including $34.6M of asset renewal) and a net cost of $57M including grants.
• Moderate and sustainable levels of debt, with net financial liabilities of $94.7M or 59.4% of total operating revenue.

More information about Council’s services is contained in the Key Direction sections of the document, starting on page 56.

Projects and Additional Services

All of Council’s projects and additional services (Budget Bids) are detailed in the LTFP & ABP by category of spending, and can be found on pages 26 to 45.

Funds of $34.6M are provided for asset updates / renewal in line with our Asset Management Plans, with significant items being:

• Road Reseal $10.3M
• Building Renewal $3.9M
• Irrigation Renewal $2.3M
• Pratt Avenue Bridge $2M
• Drainage & Waterways Program $1.5M
• Playground Renewal $1.1M
• Public Lighting Renewal $1M

Council continues to increase service delivery in a number of areas, and investing in community assets for the future.

The 2024/25 LTFP & ABP incorporates a number of large-scale initiatives including:

Significant investment in upgraded or new playground, recreational, sporting and community facilities expanding the level of services provided across open space, amenity, community connection, safety, and social spheres.

A transportation program that will continue to deliver traffic improvements across Council including footpaths & kerb ramps, construction of school & pedestrian crossings, improvements to the City’s bicycle network and the City-Wide Trails program that aims to deliver a network of “off road” linked shared use paths.

In 2024/25 Council continues to provide the pool of grant funds and individual grant amounts available (upon application) to clubs and sporting facilities for clubs to initiate minor improvements to buildings, facilities and equipment.

To discover more about the future plans and initiatives of the City of Salisbury please download the 2024/25 Long Term Financial Plan and Annual Business Plan.