Long Term Financial Plan

The purpose of a long-term financial plan is to express in financial terms the activities that the Council proposes to undertake over the medium to longer term to achieve its stated objectives. It is similar to, but less detailed than the Annual Budget and helps guide Council’s future actions depending on the longer-term revenue and expenditure proposals.

Long-term financial plans are particularly important for entities with a high level of long-lived assets and significant asset management responsibilities relative to their income base. Such entities may have long periods with modest levels of asset renewal requirements and then other periods when very significant outlays are necessary. They need to be generating revenue in an equitable manner over time and ensure that they have capacity to finance peaks in asset management and other outlays when, and including by way of borrowings where, necessary.

The preparation of a long-term financial plan generates improved information to guide Council’s decisions about the mix and timings of outlays on operating activities and additional assets and the funding implications of these. Without a soundly based long-term financial plan, the Council with its significant asset management responsibilities is unlikely to have sufficient data to determine sustainable service levels with affordable asset strategies, appropriate revenue targets and treasury management.

The long-term plan is reviewed annually and provides a financial plan for the next 10 years.