Long Term Financial Plan 2026 - 2035
1. Legislative Requirements
This section describes how the Long Term Financial Plan links to the achievement of the Community Vision and the Council Plan within the Integrated Strategic Planning and Reporting framework. This framework guides the Council in identifying community needs and aspirations over the long term (Community Vision), medium term (Council Plan) and short term (Annual Budget) and then holding itself accountable (Annual Report).
The following diagram provides an overview of the core legislated elements of an integrated strategic planning and reporting framework and outcomes.
1.1 Strategic Planning Principles
The Long Term Financial Plan provides a 10-year financially sustainable projection regarding how the actions of the Council Plan may be funded to achieve the Community Vision. The Long Term Financial Plan is developed in the context of the following strategic planning principles:
- Council has an integrated approach to planning, monitoring and performance reporting.
- Council Long Term Financial Plan addresses the Community Vision by funding the aspirations of the Council Plan. The Council Plan aspirations and actions are formulated in the context of the Community Vision.
- The Long Term Financial Plan statements articulate the 10-year financial resources necessary to implement the goals and aspirations of the Council Plan to achieve the Community Vision.
- Council's strategic planning principles identify and address the risks to effective implementation of the Long Term Financial Plan. The financial risks are included at section 1.2.2 below.
- The Long Term Financial Plan provides for the strategic planning principles of progress monitoring of progress and reviews to identify and adapt to changing circumstances.
1.2 Financial Management Principles
The Long Term Financial Plan demonstrates the following financial management principles:
- Revenue, expenses, assets, liabilities, investments and financial transactions are managed in accordance with Council's financial policies and strategic plans.
- Management of the following financial risks:
- Council maintains accounts and records that explain its financial operations and financial position (refer section 3.2 Financial Statements).
- the management of current and future liabilities of the Council. The estimated 10 year-liabilities are disclosed in section 4.2 Balance Sheet projections.
- the beneficial enterprises of Council (where appropriate).
- Financial policies and strategic plans are designed to provide financial stability and predictability to the community.
- Council maintains accounts and records that explain its financial operations and financial position (refer to section 4 Financial Policy Statements).
1.3 Engagement Principles
Council adheres to the principles and intent of its adopted Community Engagement Policy. In this instance consultation undertaken for the review of the Community Vision and the development of the Council Plan 2025–29 was used to inform development of the Long Term Financial Plan. Activities undertaken included:
- Three workshops with community in January and February 2025, held in Port Fairy, Koroit and Mortlake
- A workshop with representatives from key partner organisations in February 2025
- 14 listening post sessions with Councillors and Council officers at key points across the Shire between February and March 2025
- An online survey, open across January and February 2025
- Adopting the draft 4 year 2025/26 Budget for public consultation on 20 May 2025
- Considering community submissions at the Ordinary Council meeting of 23 June 2025, whereafter the 4 year 2025/26 Budget was adopted.
Key priorities were distilled from these engagement activities and used by Council to develop a draft Long Term Financial Plan for the period 2026 to 2035. This was then refined through the following process:
- Review of the draft Long Term Financial Plan by Councillors
- Public exhibition of the draft Long Term Financial Plan in September 2025, with community encouraged to provide feedback.
- Preparation of the final Long Term Financial Plan by Council, incorporating community input, and
- Presentation of the final Long Term Financial Plan to the Council meeting on 28 October 2025 for adoption.
1.4 Service Performance Principles
Council services are designed to be purpose targeted to community needs and value for money. The service performance principles are listed below:
- Services are provided in an equitable manner and are responsive to the diverse needs of the community. The Council Plan is designed to identify the key services and projects to be delivered to the community. The Long Term Financial Plan provides the mechanism to demonstrate how the service aspirations within the Council Plan may be funded.
- Services are accessible to the relevant users within the community.
- Council provides quality services that provide value for money to the community. The Local Government Performance Reporting Framework (LGPRF) is designed to communicate council’s performance regarding the provision of quality and efficient services.
1.5 Asset Plan Integration
Integration to the Asset Plan is a key principle of the Council’s strategic financial planning principles. The purpose of this integration is designed to ensure that future funding is allocated in a manner that supports service delivery in terms of the plans and the effective management of Council’s assets into the future.
The Asset Plan identifies the operational and strategic practices, which will ensure that Council manages assets across their life cycle in a financially sustainable manner. The Asset Plan, and associated asset management policies, provide council with a sound base to understand the risk associated with managing its assets for the community’s benefit.
The Asset Plan is designed to inform the 10-year Long Term Financial Plan by identifying the amount of capital renewal, backlog and maintenance funding that is required over the life of each asset category. The level of funding will incorporate knowledge of asset condition; the risk assessment issues as well as the impact of reviewing and setting intervention and service levels for each asset class.
In addition to identifying the operational and strategic practices that ensure that Council manages assets across their life cycle in a financially sustainable manner, the Asset Plan quantifies the asset portfolio and the financial implications of those practices. Together the Long Term Financial Plan and Asset Plan seek to balance projected investment requirements against projected budgets.
2. Long Term Financial Plan Context
This section describes the context and external / internal environment and consideration in determining the 10-year financial projections and assumptions.
2.1 Strategic Actions
The engagement activities undertaken for the development of the Council Plan identified a number of points relevant to the Long Term Financial Plan. These included a desire to:
- Optimise management of Council-owned assets to increase access and activation, i.e. a focus on renewal of Council assets rather than increasing the extent of the asset holding.
- Increase local roads maintenance expenditure.
- Expand access to early years and services for positive ageing (regardless of whether delivered by Council or third parties)
- Consider social outcomes alongside economic impacts, and
- Incorporate the importance of long-term environmental impacts into decision making processes.
Additionally, the Councillors expressed a need to:
- Maintain a balanced budget by increasing revenue opportunities and containing increases in costs.
- Reduce the asset renewal funding gap, and
- Maximise value for money for ratepayers.
These aspirations guide the strategic actions included in the 10-year Long Term Financial Plan:
Where appropriate, references are made in the commentary associated with the 10-year Comprehensive Income Statement and the 10-year Statement of Capital Works.
2.2 Assumptions to the financial plan statements
This section presents information regarding the assumptions to the Comprehensive Income Statement for the 10 years from 2025/26 to 2034/35. The assumptions comprise the annual movement for each line item of the Comprehensive Income Statement.
All figures are in 2025/26 values. As part of the Long Term Financial Plan development process, the budget forecast for 2027-2029 has been adjusted in the Long Term Financial Plan to reflect the assumptions adopted in this plan. The 2025/26 Budget has been used as the first year of the plan.
2.2.1 Rates and charges
Base rate revenue will increase by 3.0% for the 2025/26 year, based on the state government rate cap, with estimated future annual increases tied to CPI (2.5%) for the ensuing years of the Long Term Financial Plan. In addition, it is expected a further increase of 0.60% per annum will be received for growth (additional properties) as a result of supplementary rates.
Energy generator income accounts for $3.5 million for the 2025/26 financial year of the total Council Rates and Charges. The plan allows for additional income based on commissioning date assumptions for permitted and proposed new energy generators.
Kerbside collection charge is assumed to increase in line with the kerbside collection contract. New tenements are assumed to increase by 20 per annum. Waste facility charge is assumed to increase in line with CPI plus growth for new assessments.
2.2.2 Statutory fees and fines
The Long Term Financial Plan indexes statutory fees set by legislation, according on the estimated annual rate of CPI. This is often a best case scenario given some fees are outside of the control by Council and therefore may be subject to increases less than CPI.
2.2.3 User fees
Revenue from user fees is expected to increase by 3.00% for the forward estimates beyond 2025/26. Details of user fees for the 2025/26 budget year can be found in Council’s schedule of Fees and Charges that is adopted in conjunction with the budget.
2.2.4 Grants
Council currently receives grants for tied (specific purpose grants) and un-tied Financial Assistance grant funding received via the Victorian Local Government Grants Commission (VLGGC). Operating grants are expected to increase on an annual basis by CPI.
It is anticipated the Federal Roads to Recovery funding program will continue post the 2024-2029 allocation at the 2028/29 amount of $5.4 million per annum.
Capital Grants and Contributions are tied to specific capital programs.
2.2.5 Contributions
Council receives contributions from developers and community group contributions towards infrastructure projects. These are projected to remain constant in real terms.
2.2.6 Other
Revenue from other income comprises investment income. The average nominal interest rate earned on investment funds in years 2025/26 onwards of the plan is expected reduce on the basis of decrease in the cash rate and interest rate returns to a weighted average of 3.00 % per annum.
2.2.7 Employee costs
Employee costs are increased in accordance with Council’s Enterprise Bargaining Agreement as well as reflecting banding increments.
An allowance for an increase of 1 EFT employee per annum has been included in the plan from 2026/27 to 2034/35.
2.2.8 Materials and services
Materials and contracts are predicted to remain constant in real terms over the life of the plan. Any cost increases above CPI will be minimised through efficiency gains and improved work practices including effective purchasing strategies.
Outside of these broad parameters there are a number of areas that have been manually included based on their cyclical nature. These include election costs and update of the Council Plan every four years.
2.3.9 Depreciation and amortisation
Depreciation is based on current asset values and projected capital spending less any assets disposed of divided by the remaining useful life of the assets. Depreciation estimates will be influenced by future asset revaluations and condition assessments as they occur. The 2024-25 revaluation of Roads and Drainage assets has increased the forward depreciation estimates for these asset classes.
2.3.10 Borrowing costs
Borrowing costs comprise the interest expense to service Council's loan portfolio that is described in Section 5.1 Borrowing Strategy.
Long Term Financial Plan
3.1 Assumption to the Long Term Financial Plan Statements
This section presents the information regarding the assumptions for the 10 years from 2025-26 to 2034-25 with the 2025-26 adopted budget as the starting base. The assumptions comprise the annual escalation for each line item from 2026-27.
| Assumptions % movement |
Type |
2026/27 |
2027/28 |
2028/29 |
2029/30 |
2030/21 |
2031/32 |
2032/33 |
2033/34 |
2034/35 |
| CPI |
Indexation |
2.50% |
2.50% |
2.50% |
2.50% |
2.50% |
2.50% |
2.50% |
2.50% |
2.50% |
| Rates and charges |
Indexation |
2.50% |
2.50% |
2.50% |
2.50% |
2.50% |
2.50% |
2.50% |
2.50% |
2.50% |
| Rates and charges |
Assessment Increase |
0.60% |
0.60% |
0.60% |
0.60% |
0.60% |
0.60% |
0.60% |
0.60% |
0.60% |
| Energy Generators |
Linked to current and proposed energy generators |
18.33% |
25.88% |
22.37% |
16.86% |
2.50% |
2.50% |
2.50% |
2.50% |
2.50% |
| Statutory fees and fines |
Indexation |
2.50% |
2.50% |
2.50% |
2.50% |
2.50% |
2.50% |
2.50% |
2.50% |
2.50% |
| User fees |
Indexation |
3.00% |
3.00% |
3.00% |
3.00% |
3.00% |
3.00% |
3.00% |
3.00% |
3.00% |
| Contributions - monetary |
Indexation |
2.50% |
2.50% |
2.50% |
2.50% |
2.50% |
2.50% |
2.50% |
2.50% |
2.50% |
| Grants - Recurrent |
Indexation |
2.50% |
2.50% |
2.50% |
2.50% |
2.50% |
2.50% |
2.50% |
2.50% |
2.50% |
| Grants - Capital |
Linked to projects |
|
|
|
|
|
|
|
|
|
| Interest Income |
Rate |
3.00% |
3.00% |
3.00% |
3.00% |
3.00% |
3.00% |
3.00% |
3.00% |
3.00% |
| Employee costs including banding increments |
Indexation |
3.25% |
3.25% |
3.25% |
3.25% |
3.25% |
3.25% |
3.25% |
3.25% |
3.25% |
| Materials and services |
Indexation |
3.00% |
3.00% |
3.00% |
3.00% |
3.00% |
3.00% |
3.00% |
3.00% |
3.00% |
| Depreciation and Amortisation |
Indexation |
3.00% |
3.00% |
3.00% |
3.00% |
3.00% |
3.00% |
3.00% |
3.00% |
3.00% |
3.2 Financial Policy Statements
This section defines the policy statements, and associated measures, that demonstrates Council's financial sustainability to fund the aspirations of the Community Vision and the Council Plan.
| Policy Statement |
Measure |
Target |
2025/26 |
2026/27 |
2027/28 |
2028/29 |
2029/30 |
2030/31 |
2031/32 |
2032/33 |
2033/34 |
2034/35 |
| Consistent Underlying Surplus |
Adjusted underlying result greater than 0% |
>0% |
1.9% |
1.1% |
2.8% |
3.5% |
5.2% |
5.8% |
5.4% |
5.0% |
5.0% |
4.8% |
| Ensure Council maintains sufficient working capital to meet debt obligations as they fall due. |
Current Assets / Current Liabilities greater than 1.20 |
1.2 |
1.4 |
1.1 |
1.2 |
1.2 |
1.3 |
1.4 |
1.5 |
1.6 |
1.6 |
1.7 |
| Allocate adequate funds towards renewal capital in order to replace assets and infrastructure as they reach the end of their service life. |
Asset renewal and upgrade expenses / Depreciation above 100% |
> 100% |
158% |
154% |
114% |
115% |
126% |
125% |
124% |
124% |
124% |
125% |
That Council has the ability to pay the principal and interest on its borrowings when they are due from the funds it generates.
The lower the ratio, the less revenue the Council is required to use to repay its total debt. |
Non- current liabilities / own source revenue |
< 40% |
9% |
6% |
5% |
4% |
3% |
2% |
2% |
2% |
2% |
2% |
| Council maintains sufficient unrestricted cash to ensure ongoing liquidity. |
Unrestricted cash / current liabilities to be maintained above 60% |
> 60% |
83% |
57% |
63% |
72% |
74% |
82% |
92% |
101% |
109% |
113% |
| Business Services Financial Sustainability Planning |
2026/27 |
2027/28 |
2028/29 |
2029/30 |
2030/21 |
2031/32 |
2032/23 |
2033/24 |
2034/35 |
| Service Area - operational savings / additional revenue (cumulative) |
$448,500 |
$697,728 |
$847,691 |
$998,398 |
$1,149,858 |
$1,302,078 |
$1,455,068 |
$1,608,835 |
$1,763,390 |
| Operational savings / additional revenue as a % of Operating Expenses (cumulative) |
0.7% |
1.0% |
1.2% |
1.4% |
1.6% |
1.8% |
2.0% |
2.2% |
2.4% |
4. Long Term Financial Plan Statements
This section presents information regarding the Long Term Financial Plan Statements for the 10 years from 2025/26 to 2034/35.
- Comprehensive Income Statement.
- Balance Sheet.
- Statement of Changes in Equity.
- Statement of Cash Flows.
- Statement of Capital Works.
- Statement of Human Resources.
4.1 Comprehensive Income Statement
| |
2025/26 |
2026/27 |
2027/28 |
2028/29 |
2029/30 |
2030/31 |
2031/32 |
2032/33 |
2033/34 |
2034/35 |
| |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
| Income |
|
|
|
|
|
|
|
|
|
|
| Rates and charges |
28,938 |
29,628 |
30,705 |
31,828 |
32,820 |
33,401 |
33,534 |
33,666 |
33,798 |
33,930 |
| Statutory fees and fines |
674 |
674 |
674 |
674 |
674 |
674 |
674 |
674 |
674 |
674 |
| User fees |
14,340 |
14,410 |
14,482 |
14,555 |
14,628 |
14,702 |
14,775 |
14,849 |
14,924 |
14,999 |
| Grants - Recurrent |
20,962 |
22,119 |
22,419 |
22,447 |
22,475 |
22,503 |
22,531 |
22,560 |
22,589 |
22,617 |
| Grants - Capital |
3,951 |
7,300 |
2,000 |
2,000 |
2,000 |
2,000 |
2,000 |
2,000 |
2,000 |
2,000 |
| Contributions - monetary |
391 |
381 |
381 |
361 |
361 |
361 |
361 |
361 |
361 |
361 |
| Net gain/(loss) on disposal of property, infrastructure, plant and equipment |
(3,500) |
(3,500) |
(3,500) |
(3,500) |
(3,500) |
(3,500) |
(3,500) |
(3,500) |
(3,500) |
(3,500) |
| Other income |
1,070 |
800 |
800 |
800 |
800 |
800 |
800 |
800 |
800 |
800 |
| Total income |
66,825 |
71,813 |
67,961 |
69,165 |
70,259 |
70,941 |
71,176 |
71,411 |
71,646 |
71,882 |
|
|
|
|
|
|
|
|
|
|
|
| Expenses |
|
|
|
|
|
|
|
|
|
|
| Employee costs |
26,302 |
26,581 |
26,862 |
27,146 |
27,433 |
27,724 |
28,050 |
28,380 |
28,712 |
29,048 |
| Materials and services |
22,380 |
21,830 |
21,603 |
21,882 |
21,547 |
21,381 |
21,474 |
21,541 |
21,329 |
21,311 |
| Depreciation and amortisation |
17,392 |
19,298 |
19,394 |
19,491 |
19,589 |
19,687 |
19,785 |
19,884 |
19,984 |
20,083 |
| Borrowing costs |
5 |
27 |
93 |
73 |
54 |
34 |
13 |
5 |
5 |
5 |
| Total expenses |
66,078 |
67,736 |
67,952 |
68,593 |
68,623 |
68,826 |
69,322 |
69,810 |
70,030 |
70,448 |
| |
|
|
|
|
|
|
|
|
|
|
| Surplus/(deficit) for the year |
747 |
4,077 |
9 |
572 |
1,636 |
2,116 |
1,853 |
1,600 |
1,616 |
1,434 |
4.2 Balance Sheet
| |
2025/26 |
2026/27 |
2027/28 |
2028/29 |
2029/30 |
2030/31 |
2031/32 |
2032/33 |
2033/34 |
2034/35 |
| |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
| Assets |
|
|
|
|
|
|
|
|
|
|
| Current assets |
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
10,936 |
8,138 |
9,000 |
9,249 |
9,746 |
10,754 |
11,581 |
12,737 |
13,624 |
14,133 |
| Trade and other receivables |
3,893 |
3,759 |
3,805 |
3,853 |
3,895 |
3,920 |
3,925 |
3,931 |
3,936 |
3,942 |
| Inventories |
689 |
689 |
689 |
689 |
689 |
689 |
689 |
689 |
689 |
689 |
| Other assets |
564 |
510 |
510 |
510 |
510 |
510 |
510 |
510 |
510 |
510 |
| Total current assets |
16,081 |
13,096 |
14,004 |
14,301 |
14,840 |
15,873 |
16,705 |
17,867 |
18,759 |
19,273 |
| |
|
|
|
|
|
|
|
|
|
|
| Non-current assets |
|
|
|
|
|
|
|
|
|
|
| Trade and other receivables |
280 |
238 |
196 |
153 |
111 |
69 |
26 |
9 |
9 |
- |
| Property, infrastructure, plant and equipment |
682,126 |
688,475 |
687,051 |
686,925 |
687,738 |
688,331 |
689,025 |
689,720 |
690,426 |
691,322 |
| Total non-current assets |
682,406 |
688,713 |
687,246 |
687,078 |
687,849 |
688,400 |
689,051 |
689,729 |
690,435 |
691,322 |
| Total assets |
698,488 |
701,808 |
701,250 |
701,379 |
702,689 |
704,272 |
705,756 |
707,596 |
709,194 |
710,596 |
| Liabilities |
|
|
|
|
|
|
|
|
|
|
| Current liabilities |
|
|
|
|
|
|
|
|
|
|
| Trade and other payables |
4,541 |
4,541 |
4,541 |
4,541 |
4,541 |
4,541 |
4,541 |
4,541 |
4,541 |
4,541 |
| Trust funds and deposits |
1,115 |
1,115 |
1,115 |
1,115 |
1,115 |
1,115 |
1,115 |
1,115 |
1,115 |
1,115 |
| Provisions |
5,759 |
5,836 |
5,863 |
5,907 |
5,951 |
5,996 |
6,041 |
6,086 |
6,132 |
6,178 |
| Interest-bearing liabilities |
166 |
447 |
465 |
484 |
504 |
392 |
- |
- |
- |
- |
| Total current liabilities |
11,580 |
11,938 |
11,983 |
12,046 |
12,110 |
12,042 |
11,696 |
11,741 |
11,787 |
11,833 |
| |
|
|
|
|
|
|
|
|
|
|
| Non-current liabilities |
|
|
|
|
|
|
|
|
|
|
| Provisions |
3,758 |
819 |
821 |
827 |
833 |
839 |
846 |
852 |
858 |
865 |
| Interest-bearing liabilities |
260 |
2,085 |
1,471 |
958 |
562 |
91 |
62 |
250 |
180 |
95 |
| Total non-current liabilities |
4,018 |
2,903 |
2,291 |
1,784 |
1,395 |
930 |
908 |
1,102 |
1,038 |
960 |
| Total liabilities |
15,598 |
14,841 |
14,274 |
13,830 |
13,505 |
12,973 |
12,603 |
12,843 |
12,825 |
12,792 |
| Net assets |
682,890 |
686,967 |
686,976 |
687,548 |
689,184 |
691,300 |
693,153 |
694,753 |
696,369 |
697,803 |
| |
|
|
|
|
|
|
|
|
|
|
| Equity |
|
|
|
|
|
|
|
|
|
|
| Accumulated surplus |
251,098 |
256,654 |
257,230 |
257,192 |
260,690 |
263,188 |
265,636 |
267,624 |
269,639 |
270,884 |
| Reserves |
431,792 |
430,313 |
429,747 |
430,356 |
428,494 |
428,111 |
427,517 |
427,130 |
426,731 |
426,919 |
| Total equity |
682,890 |
686,967 |
686,976 |
687,548 |
689,184 |
691,300 |
693,153 |
694,753 |
696,369 |
697,803 |
4.3 Statement of Equity
| |
Total |
Accumulated Surplus |
Revaluation Reserve |
Other Reserves |
| |
$’000 |
$’000 |
$’000 |
$’000 |
| 2025/26 |
|
|
|
|
| Balance at beginning of the financial year |
682,143 |
250,342 |
422,801 |
9,000 |
| Surplus/(deficit) for the year |
747 |
747 |
- |
- |
| Transfers to other reserves |
- |
(8) |
- |
8 |
| Balance at end of the financial year |
682,890 |
251,081 |
422,801 |
9,008 |
| |
|
|
|
|
| 2026/27 |
|
|
|
|
| Balance at beginning of the financial year |
682,890 |
251,081 |
422,801 |
9,008 |
| Surplus/(deficit) for the year |
4,077 |
4,077 |
- |
- |
| Transfers to other reserves |
- |
1,479 |
- |
(1,479) |
| Balance at end of the financial year |
686,967 |
256,637 |
422,801 |
7,529 |
| |
|
|
|
|
| 2027/28 |
|
|
|
|
| Balance at beginning of the financial year |
686,967 |
256,637 |
422,801 |
7,529 |
| Surplus/(deficit) for the year |
9 |
9 |
- |
- |
| Transfers to other reserves |
- |
566 |
- |
(566) |
| Balance at end of the financial year |
686,976 |
257,213 |
422,801 |
6,963 |
| |
|
|
|
|
| 2028/29 |
|
|
|
|
| Balance at beginning of the financial year |
686,976 |
257,213 |
422,801 |
6,963 |
| Surplus/(deficit) for the year |
572 |
572 |
- |
- |
| Transfers to other reserves |
- |
(609) |
- |
609 |
| Balance at end of the financial year |
687,549 |
257,175 |
422,801 |
7,572 |
| |
|
|
|
|
| 2029/30 |
|
|
|
|
| Balance at beginning of the financial year |
687,549 |
257,175 |
422,801 |
7,572 |
| Surplus/(deficit) for the year |
1,636 |
1,636 |
- |
- |
| Transfers to other reserves |
- |
1,862 |
- |
(1,862) |
| Balance at end of the financial year |
689,184 |
260,673 |
422,801 |
5,710 |
| |
Total |
Accumulated Surplus |
Revaluation Reserve |
Other Reserves |
| |
$’000 |
$’000 |
$’000 |
$’000 |
| 2030/31 |
|
|
|
|
| Balance at beginning of the financial year |
689,184 |
260,673 |
422,801 |
5,710 |
| Surplus/(deficit) for the year |
2,116 |
2,116 |
- |
- |
| Transfers to other reserves |
- |
383 |
- |
(383) |
| Balance at end of the financial year |
691,300 |
263,172 |
422,801 |
5,327 |
| |
|
|
|
|
| 2031/32 |
|
|
|
|
| Balance at beginning of the financial year |
691,300 |
263,172 |
422,801 |
5,327 |
| Surplus/(deficit) for the year |
1,853 |
1,853 |
- |
- |
| Transfers to other reserves |
- |
595 |
- |
(595) |
| Balance at end of the financial year |
693,153 |
265,619 |
422,801 |
4,733 |
| |
|
|
|
|
| 2032/33 |
|
|
|
|
| Balance at beginning of the financial year |
693,153 |
265,619 |
422,801 |
4,733 |
| Surplus/(deficit) for the year |
1,600 |
1,600 |
- |
- |
| Transfers to other reserves |
- |
387 |
- |
(387) |
| Balance at end of the financial year |
694,754 |
267,607 |
422,801 |
4,346 |
| |
|
|
|
|
| 2033/34 |
|
|
|
|
| Balance at beginning of the financial year |
694,754 |
267,607 |
422,801 |
4,346 |
| Surplus/(deficit) for the year |
1,616 |
1,616 |
- |
- |
| Transfers to other reserves |
- |
387 |
- |
(387) |
| Balance at end of the financial year |
696,370 |
269,610 |
422,801 |
3,959 |
| |
|
|
|
|
| 2034/35 |
|
|
|
|
| Balance at beginning of the financial year |
696,370 |
269,610 |
422,801 |
3,959 |
| Surplus/(deficit) for the year |
1,434 |
1,434 |
- |
- |
| Transfers to other reserves |
- |
(189) |
- |
189 |
| Balance at end of the financial year |
697,803 |
270,855 |
422,801 |
4,147 |
4.4 Statement of Cashflows
| |
2025/26 |
2026/27 |
2027/28 |
2028/29 |
2029/30 |
2030/31 |
2031/32 |
2032/33 |
2033/34 |
2034/35 |
| |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
| |
Inflows |
Inflows |
Inflows |
Inflows |
Inflows |
Inflows |
Inflows |
Inflows |
Inflows |
Inflows |
| |
(Outflows) |
(Outflows) |
(Outflows) |
(Outflows) |
(Outflows) |
(Outflows) |
(Outflows) |
(Outflows) |
(Outflows) |
(Outflows) |
| Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
|
| Rates and charges |
28,938 |
29,762 |
30,659 |
31,780 |
32,778 |
33,377 |
33,528 |
33,660 |
33,792 |
33,925 |
| Statutory fees and fines |
674 |
674 |
674 |
674 |
674 |
674 |
674 |
674 |
674 |
674 |
| User fees |
14,340 |
14,410 |
14,482 |
14,555 |
14,628 |
14,702 |
14,775 |
14,849 |
14,924 |
14,999 |
| Grants - Recurrent |
20,962 |
22,119 |
22,419 |
22,447 |
22,475 |
22,503 |
22,531 |
22,560 |
22,589 |
22,617 |
| Grants - capital |
3,951 |
7,300 |
2,000 |
2,000 |
2,000 |
2,000 |
2,000 |
2,000 |
2,000 |
2,000 |
| Contributions - monetary |
391 |
381 |
381 |
361 |
361 |
361 |
361 |
361 |
361 |
361 |
| Interest received |
1,076 |
854 |
800 |
800 |
800 |
800 |
800 |
800 |
800 |
800 |
| Employee costs |
(26,189) |
(26,489) |
(26,833) |
(27,096) |
(27,383) |
(27,673) |
(27,999) |
(28,328) |
(28,660) |
(28,996) |
| Materials and services |
(22,335) |
(24,783) |
(21,603) |
(21,882) |
(21,547) |
(21,381) |
(21,474) |
(21,541) |
(21,329) |
(21,311) |
| Net cash provided by/(used in) operating activities |
21,807 |
24,228 |
22,979 |
23,639 |
24,786 |
25,362 |
25,197 |
25,035 |
25,151 |
25,069 |
| |
|
|
|
|
|
|
|
|
|
|
| Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
|
| Payments for property, infrastructure, plant and equipment |
(27,470) |
(29,713) |
(22,147) |
(22,502) |
(24,684) |
(24,561) |
(24,612) |
(24,711) |
(24,822) |
(25,111) |
| Proceeds from sale of property, infrastructure, plant and equipment |
1,073 |
565 |
527 |
487 |
632 |
632 |
632 |
632 |
632 |
632 |
| Payments of loans and advances |
42 |
42 |
42 |
42 |
42 |
42 |
42 |
17 |
- |
9 |
| Net cash provided by/ (used in) investing activities |
(26,355) |
(29,106) |
(21,578) |
(21,973) |
(24,010) |
(23,887) |
(23,938) |
(24,062) |
(24,190) |
(24,470) |
| |
|
|
|
|
|
|
|
|
|
|
| Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
|
| Finance costs |
(5) |
(27) |
(93) |
(73) |
(54) |
(34) |
(13) |
(5) |
(5) |
(5) |
| Proceeds from borrowings |
100 |
2400 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
| Lease Liability |
(22) |
(86) |
(149) |
(29) |
108 |
(79) |
(29) |
188 |
(70) |
(85) |
| Repayment of borrowings |
- |
(209) |
(447) |
(465) |
(484) |
(504) |
(392) |
- |
- |
- |
| Net cash provided by/(used in) financing activities |
73 |
2,078 |
(689) |
(567) |
(430) |
(617) |
(434) |
183 |
(75) |
(90) |
| Net increase/(decrease) in cash and cash equivalents |
(4,475) |
(2,799) |
713 |
1,099 |
347 |
859 |
826 |
1,157 |
886 |
509 |
| Cash and cash equivalents at the beginning of the financial year |
15,411 |
10,936 |
8,137 |
8,850 |
9,949 |
10,296 |
11,155 |
11,981 |
13,138 |
14,024 |
| Cash and cash equivalents at the end of the financial year |
10,936 |
8,137 |
8,850 |
9,949 |
10,296 |
11,155 |
11,981 |
13,138 |
14,024 |
14,533 |
4.5 Statement of Capital Works
| |
2025/26 |
2026/27 |
2027/28 |
2028/29 |
2029/30 |
2030/31 |
2031/32 |
2032/33 |
2033/34 |
2034/35 |
| |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
| Property |
|
|
|
|
|
|
|
|
|
|
| Land |
360 |
200 |
250 |
250 |
250 |
250 |
250 |
250 |
250 |
250 |
| Total land |
360 |
200 |
250 |
250 |
250 |
250 |
250 |
250 |
250 |
250 |
| Buildings |
2,044 |
1,883 |
1,530 |
1,800 |
1,393 |
1,027 |
1,227 |
1,327 |
1,235 |
1,267 |
| Total buildings |
2,044 |
1,883 |
1,530 |
1,800 |
1,393 |
1,027 |
1,227 |
1,327 |
1,235 |
1,267 |
| Total property |
2,404 |
2,083 |
1,780 |
2,050 |
1,643 |
1,277 |
1,477 |
1,577 |
1,485 |
1,517 |
| |
|
|
|
|
|
|
|
|
|
|
| Plant and equipment |
|
|
|
|
|
|
|
|
|
|
| Plant, machinery and equipment |
4,397 |
3,325 |
2,495 |
2,400 |
4,230 |
2,939 |
2,939 |
2,939 |
2,939 |
2,939 |
| Computers and telecommunications |
445 |
150 |
150 |
150 |
150 |
150 |
150 |
150 |
150 |
150 |
| Library books |
140 |
140 |
140 |
140 |
140 |
140 |
140 |
140 |
140 |
140 |
| Total plant and equipment |
4,982 |
3,615 |
2,785 |
2,690 |
4,520 |
3,229 |
3,229 |
3,229 |
3,229 |
3,229 |
| |
|
|
|
|
|
|
|
|
|
|
| Infrastructure |
|
|
|
|
|
|
|
|
|
|
| Roads |
16,028 |
14,287 |
13,958 |
13,958 |
15,587 |
16,916 |
16,916 |
16,916 |
17,100 |
17,859 |
| Bridges |
1,103 |
7,066 |
716 |
2,216 |
782 |
836 |
686 |
686 |
693 |
724 |
| Footpaths and cycleways |
395 |
300 |
300 |
300 |
300 |
300 |
300 |
300 |
300 |
300 |
| Drainage |
636 |
610 |
610 |
610 |
681 |
739 |
739 |
739 |
747 |
780 |
| Recreational, leisure and community facilities |
966 |
90 |
290 |
340 |
291 |
316 |
316 |
316 |
319 |
332 |
| Waste management |
- |
1,500 |
1,523 |
123 |
733 |
733 |
733 |
733 |
733 |
155 |
| Parks, open space and streetscapes |
535 |
116 |
140 |
170 |
102 |
170 |
170 |
170 |
170 |
170 |
| Other infrastructure |
421 |
45 |
45 |
45 |
45 |
45 |
45 |
45 |
45 |
45 |
| Total infrastructure |
20,084 |
24,014 |
17,582 |
17,762 |
18,521 |
20,055 |
19,905 |
19,905 |
20,107 |
20,365 |
| |
|
|
|
|
|
|
|
|
|
|
| Total capital works expenditure |
27,470 |
29,712 |
22,147 |
22,502 |
24,684 |
24,561 |
24,611 |
24,711 |
24,821 |
25,111 |
4.6 Statement of Human Resources
| |
2025/26 |
2026/27 |
2027/28 |
2028/29 |
2029/30 |
2030/31 |
2031/32 |
2032/33 |
2033/34 |
2034/35 |
| |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
$’000 |
| Total staff expenditure |
26,302 |
26,581 |
26,862 |
27,146 |
27,433 |
27,724 |
28,050 |
28,380 |
28,712 |
29,048 |
|
|
|
|
|
|
|
|
|
|
|
|
FTE |
FTE |
FTE |
FTE |
FTE |
FTE |
FTE |
FTE |
FTE |
FTE |
| Staff numbers |
|
|
|
|
|
|
|
|
|
|
| Employees |
278.90 |
279.90 |
280.90 |
281.90 |
282.90 |
283.90 |
284.90 |
285.90 |
286.90 |
287.90 |
| Total staff numbers |
278.90 |
279.90 |
280.90 |
281.90 |
282.90 |
283.90 |
284.90 |
285.90 |
286.90 |
287.90 |
4.7 Financial Performance Indicators
| Indicator |
Measure |
|
|
|
|
|
|
|
|
Trend |
Notes |
| 2025/26 |
2026/27 |
2027/28 |
2028/29 |
2029/30 |
2030/31 |
2031/32 |
2032/33 |
2033/34 |
2034/35 |
+/o/- |
|
| Operating position |
|
|
|
|
|
|
|
|
|
|
|
|
| Operating Result |
|
$746,802 |
$4,077,337 |
$9,139 |
$572,152 |
$1,635,563 |
$2,115,741 |
$1,853,316 |
$1,600,304 |
$1,615,962 |
$1,433,772 |
o |
|
| Adjusted underlying result |
Adjusted underlying surplus (deficit) / Adjusted underlying revenue |
1.9% |
1.1% |
2.8% |
3.5% |
5.2% |
5.8% |
5.4% |
5.0% |
5.0% |
4.8% |
+ |
1 |
| Liquidity |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Working Capital |
Current assets / current liabilities |
138.9% |
109.7% |
116.9% |
118.7% |
122.5% |
131.8% |
142.8% |
152.2% |
159.2% |
162.9% |
+ |
2 |
| Unrestricted cash |
Unrestricted cash / current liabilities |
83.1% |
57.2% |
64.2% |
65.9% |
69.8% |
78.7% |
88.3% |
98.0% |
105.3% |
109.2% |
+ |
|
| Obligations |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loans and borrowings |
Interest bearing loans and borrowings / rate revenue |
0.3% |
7.7% |
6.0% |
4.3% |
2.7% |
1.2% |
0.0% |
0.0% |
0.0% |
0.0% |
+ |
3 |
| Loans and borrowings |
Interest and principal repayments on interest bearing loans and borrowings / rate revenue |
0.0% |
0.8% |
1.8% |
1.7% |
1.6% |
1.6% |
1.2% |
0.0% |
0.0% |
0.0% |
o |
|
| Indebtedness |
Non-current liabilities / own source revenue |
8.9% |
6.4% |
4.9% |
3.7% |
2.9% |
1.9% |
1.8% |
2.2% |
2.1% |
1.9% |
+ |
|
| Asset renewal |
Asset renewal and upgrade expense / Asset depreciation |
157.9% |
154.0% |
113.4% |
119.8% |
125.2% |
124.0% |
124.4% |
124.3% |
124.2% |
125.0% |
o |
4 |
| Stability |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Rates concentration |
Rate revenue / adjusted underlying revenue |
43.6% |
43.6% |
44.2% |
45.1% |
45.8% |
46.2% |
46.2% |
46.2% |
46.3% |
46.3% |
o |
|
| Rates effort |
Rate revenue / CIV of rateable properties in the municipality |
0.22% |
0.22% |
0.23% |
0.23% |
0.24% |
0.24% |
0.24% |
0.24% |
0.24% |
0.24% |
o |
|
| Efficiency |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expenditure level |
Total expenses/ no. of property assessments |
$5,199 |
$5,309 |
$5,305 |
$5,334 |
$5,312 |
$5,303 |
$5,317 |
$5,329 |
$5,322 |
$5,329 |
o |
|
| Revenue level |
General Rates and Municpal Charge revenue / no. of property assessments |
1,672 |
1,674 |
1,678 |
1,681 |
1,683 |
1,686 |
1,688 |
1,690 |
1,692 |
1,694 |
o |
|
Key to Forecast Trend:
+ Forecasts improvement in Council's financial performance/financial position indicator
o Forecasts that Council's financial performance/financial position indicator will be steady
- Forecasts deterioration in Council's financial performance/financial position indicator
Notes to indicators
1. Adjusted underlying result
An indicator of the sustainable operating result required to enable Council to continue to provide core services and meet its objectives. A positive result indicates Council is able to fund its operations without reliance on Council's cash reserves or increased debt to maintain services.
2. Working Capital
The ratio expresses the level of current assets the Council has available to meet its current liabilities. It is essential that Council has sufficient liquid funds in order to meet its day to day obligations.
3. Debt compared to rates
Council has forecast $2.4 million new borrowing for major infrastructure renewal works in 2026-27.
4. Asset Renewal
This percentage indicates the extent of Council's renewals against its depreciation charge (an indication of the decline in value of its existing capital assets). A percentage greater than 100 indicates Council is maintaining its existing assets, while a percentage less than 100 means its assets are deteriorating faster than they are being renewed and future capital expenditure will be required to renew assets.
5 Strategies and Plans
This section describes the strategies and plans that support the 10-year financial projections included to the Long Term Financial Plan.
5.1 Borrowing Strategy
5.1.1 Current Debt Position
Council has zero borrowings as at 30 June 2025.
5.1.2 Future Borrowing Requirements
Council has projected to borrow $2.4 million in 2026/27 for funding to support major infrastructure projects.
The use of loans to fund capital expenditure is an effective mechanism of linking the payment for the asset to successive generations who receive benefits over the life of that asset. This matching concept is frequently referred to as “intergenerational equity”.
No further borrowings have been identified in the plan; however, Council will review its need for loan funds annually when consideration of the annual capital works program is undertaken.
The table below highlights Council’s interest-bearing liabilities, principal repayments and loan interest forward budget projections.
| Year |
New Borrowing |
Loan Principal |
Loan Interest |
Balance 30 June |
|
$000 |
$000 |
$000 |
$000 |
| 2025/26 |
100 |
- |
- |
100 |
| 2026/27 |
2,400 |
209 |
24 |
2,291 |
| 2027/28 |
- |
447 |
86 |
1,845 |
| 2028/29 |
- |
465 |
68 |
1,380 |
| 2029/30 |
- |
484 |
49 |
896 |
| 2030/31 |
- |
504 |
29 |
392 |
| 2031/32 |
- |
392 |
8 |
- |
| 2032/33 |
- |
- |
- |
- |
| 2033/34 |
- |
- |
- |
- |
| 2034/35 |
- |
- |
- |
- |
5.2 Reserves Strategy
5.2.1 Current Reserves
Public Open Space Reserve
Purpose - The Open Space Reserve holds funds contributed by developers for works associated with developing and improved public open space and recreational facilities within Council. Funds are contributed in accordance with Section 18 of the Subdivision Act and transfers are restricted to the purpose of creating open space such as parks, playgrounds, pavilions and other such items where it is deemed that these works should occur at a later point than the initial development.
Movements - transfers to the reserve (inflows) comprise contribution income from subdividers in lieu of the 5.0% Public Open Space requirement. Transfers from the reserve (outflows) are applied to fund Open Space capital projects on an annual basis.
Waste Reserve
Purpose – Waste facilities reserve funds are used for maintenance; development and rehabilitation works at waste facility sites.
Mount Shadwell Quarry Reserve
Purpose – This reserve is to set aside funds for capital works at the Mount Shadwell Quarry including replacement plant and equipment at the end of the service life.
Caravan Park Reserve
Purpose – This reserve is to set aside funds for capital works at the Council run caravan parks including facility upgrades and strategic investment.