Long Term Financial Plan and Annual Business Plan

2023/24 Long Term Financial Plan and Annual Business Plan

The 2023/24 Long Term Financial Plan and Annual Business Plan (LTFP & ABP) and budget was adopted by Council on Monday 26 June 2023. 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 2023/24 budget delivers an operating surplus of $3.186M; gross infrastructure investment of $42.1M (including $30.1M of asset renewal) with a net cost of $40.3M including grants; moderate and sustainable levels of debt, with net financial liabilities of $95.5M or 65% of total operating revenue; and an average rate increase of 6.9% 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 2023/24 average rate increase is 6.9% for residential properties and commercial and industrial properties. Rates growth from the increase in the number of assessments is anticipated at 0.50%, while rates growth from the increase from development activity is estimated to be 0.50%. Given the 2023/24 inflation indicator is based on CPI of 7.9% (actual Adelaide Annualised CPI at March 2023) the average rate increase was consulted at 7.9%. However, with considerable financial pressure on households Council resolved an average rate increase of 6.9% across both residential and commercial and industrial properties. Further information about rates is contained in the Rating Strategy and Policy on pages 122 to 125 and at Appendix B – Uniform Presentation of Rates Revenue.

Operating Surplus

This year, Council will deliver an Operating Surplus of $3.186M reflecting a 2% Operating Surplus Ratio. Further information is available in the Budgeted Financial Statements and Analysis on pages 45 to 50.

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 2023/24 budget delivers:

• An operating surplus of $3.186M
• Gross infrastructure investment of $38.2M (including $25M of asset renewal) and a net cost of $37.3M including grants.
• Moderate and sustainable levels of debt, with net financial liabilities of $95.5M or 65% of total operating revenue.

More information about Council’s services is contained in the Key Direction sections of the document, starting on page 54,

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 43.

Funds of $30.1M are provided for asset updates / renewal in line with our Asset Management Plans, with significant items being:

• Road reseal and reconstruction $9.8M
• Salisbury Water Asset Renewal $1.1M
• Pratt Avenue Bridge, Pooraka$3.4M
• Building Renewal $3.7M
• Drainage and Waterways Program $2M
• Irrigation Controller Renewal $1M

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

The 2023/24 LTFP & ABP incorporates the redevelopment of the Salisbury Recreation Precinct which is anticipated for completion in April 2024. This includes the development of a $28.4m Aquatic Centre which will include the construction of an indoor warm water hydrotherapy, lap and leisure pools, a gymnasium, water play park and café.

Other large-scale initiatives that will be important during 2023/24 Financial Year include:

Delivery of new school and pedestrian crossings and footpath ramps and improvements to the City’s bicycle network.

Improving the amenity of the City by replacing and upgrading existing street trees with species more appropriate to the space provided within our streets and renewal of verges to complete a more holistic transformation of the streetscape amenity.

Major traffic improvements to address identified, specific major traffic network deficiencies.

The City-Wide Trails program that aims to deliver a network of “off road” linked shared use paths.

In 2023/24 Council increases 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 2023/24 Long Term Financial Plan and Annual Business Plan.