FAQs
How does this relate to the proposed special variation?
The updated LTFP is a key component of our financial sustainability journey and provides provide a wider range of scenarios for the community’s information around the proposed variation.
Why is this being revised now?
Updated data and financials from the financial statements and financial sustainability review, and to provide a wider range of scenarios for the community’s information around the proposed special variation.
What official process does this follow for approval?
The draft long term financial plan was endorsed by Council at its ordinary meeting on 19 November and is now on exhibition for 28 days. Following the exhibition period, feedback will be reviewed and considered before the draft LTFP is returned to Council for approval.
Are these audited documents?
The draft long term financial plan (LTFP) is a ten year forecast modelled on an initial opening audited balance.
Additionally, the draft LTFP has been reviewed extensively by Professor Joseph Drew as part of our assurance process.
What is a long term financial plan?
Under the NSW Government’s IP&R guidelines, Council’s are required to prepare and adopt a long term financial plan (LTFP).
Under the guidelines, an LTFP is required to model at least three scenarios of ongoing financial performance for the information of the community, and must be for a minimum of 10 years.
What are the key changes from the previous version?
The Draft LTFP applies a fuller and more systematic integration of the Asset Management Strategy and Asset Management Plans. This includes detailed condition data, lifecycle modelling and updated unit costs. A more complete application of AMP information reveals significantly larger renewal requirements than the adopted LTFP, which relied on partial AMP inputs and historical funding levels.
The Draft LTFP incorporates recent revaluations across Council’s major asset classes.
These revaluations reflect higher construction, materials and labour costs, consequently depreciation increases materially and renewal cost estimates rise.
New population, dwelling and development forecasts suggest stronger growth than previously anticipated. This results in a larger infrastructure footprint delivered earlier than assumed in the adopted LTFP. Due to this Council faces increased maintenance, operational and future renewal obligations arising from expanded road, stormwater, open space and community infrastructure networks.
The combined effect of updated asset, valuation, economic and growth information results in a more accurate depiction of Council’s long-term funding gap with the revised LTFP projecting significantly larger operating and capital expenditure needs, providing a clearer understanding of the financial challenge facing Council.
How can I access the current Long Term Financial Plan?
Council’s current Long Term Financial Plan is available on the Council website, here: Long Term Financial Plan (prior to revision)
How often is this revised?
Council’s Long Term Financial Plan is revised annually and on an as needs basis.