FAQs

A Long Term Financial Plan (LTFP) outlines the activities Council wants to undertake over the medium to longer term to achieve our strategic objectives. The plan shows what our financial performance and position is anticipated to be over a ten-year period. It is similar to, but is less detailed than an annual budget, and is designed to ensure that Council operates in a financially sustainable manner with sufficient funds available to provide services and maintain infrastructure.

The plan considers:

• The services that are provided and to what standard;
• How community assets under Council’s care and control are maintained;
• The size, type, timing and number of projects that are delivered;
• Rate revenue levels;
• General Fees and Charges levels; and
• Borrowings (debt) levels that are required to deliver our strategic objectives.

Financial Sustainability for Local Government is important to ensure that each generation 'pays their way'. This is to ensure that the responsibility for infrastructure/asset renewal is not a burden on future generations. 

The South Australian Local Government has developed several financial indicators to measure a Council's Financial Sustainability. These indicators include the Operating Surplus Ratio, Net Financial Liabilities Ratio and Asset Renewal Funding Ratio. These indicators and their targets are used by Council as a guide in the LTFP.

The LTFP is driven by Council's Strategic Management Plan and includes Council's future revenue and expenditure estimates particularly focusing on the financing and scheduling of major projects, loan indebtedness, rating level, asset replacement/renewal and impact on operating expenditure. Council's LTFP assumes: the continuation of existing services at current service standards; no internal changes to services or investment in new or upgraded assets other than what is already resolved and planned Council's financial projections over the long term planning horizon are not meant to be a prediction of financial position or performance but rather an indication of direction and financial capacity. 

This year’s plan includes a proposed $11 million upgrade to the Saleyard facility, which is subject to the receipt of both Federal and State Government funding.

Council will meet its financial targets over the term of the plan and has the financial capacity to meet our community’s service demands, plus capability to respond to changing circumstances. The projections indicate that, based on current assumptions, Council is in a sound financial position with a favourable outlook over the term of the plan. Whilst the proposed Saleyards project projects operating deficits, years nine and ten of the plan, are likely to return Council to surplus operating results.