Why do we have an annual Business Plan and Budget?

    The Business Plan & Budget is the key annual operational and financial planning document of the City of Adelaide. It sets out the key activities, projects, and services we plan to provide in the upcoming financial year, our sources of revenue, and how we propose to allocate our budget. 

    The following documents make up the City of Adelaide’s suite of ‘strategic management plans’:

    • Adelaide: The World’s most Liveable City, 2020-2024 Strategic Plan
    • Long Term Financial Plan
    • Infrastructure and Asset Management Plans.

    The draft 2021-2022 Business Plan & Budget aligns with our services.

    This draft Plan delivers on Year 2 of the 2020-2024 Strategic Plan adopted by Council in March 2020.

    How was the Draft 2021-2022 Business Plan and Budget developed?

    The 2021-2022 Business Plan and Budget was built with City Recovery in mind, and the importance of bringing people back to the city.  The priorities for 2021-2022 align to our 2020-2024 Strategic Plan Outcomes: Thriving Communities, Strong Economies, Dynamic City Culture, Environmental Leadership and Enabling Priorities. The draft 2021-2022 Business Plan and Budget is a statement of what the City of Adelaide will do for our city.

    Our immediate focus is recovery from the effects of COVID-19 on our city and our communities.

    Council has determined these parameters for the budget build:

    • maintaining service expenses at current expenses levels
    • maintaining operational activities at current service levels
    • continuing to build efficiencies and community value into what we deliver throughout 2021-2022
    • continuing to work with KPMG on service contestability. These works have been re-timed to be workshopped with our independent audit committee in April 2021
    • maintaining the rate in the dollar freeze and valuations at 2020-2021 level
    • consulting with key stakeholders about properties deemed to be “for public purposes on public land”, currently exempt from paying rates under federal and state legislation
    • continuing to review fees and charges to be fair and equitable and to maximise revenue opportunities
    • delivering Subsidiary budgets (presented separately to Council)
    • considering market recovery from the effects of COVID-19.

    What are the financial impacts of COVID-19 on the 2021-2022 Budget?

    The financial impacts of COVID-19 are expected to last throughout 2021-2022. Recovery is not immediate and it will take time to recoup losses but also to take advantage of the opportunity to do things differently and to balance our budget and support future surplus positions.

    The key impacts on the 2021-2022 budget can be summarised as:

    • Reduced income for commercial operations and property transactions
    • Holding rates income except for new developments
    • Reviewing the services we deliver to our community to ensure value for money for our ratepayers
    • Reduced asset renewal and new capital programs
    • The introduction of a $4.75 million target to balance the budget over the next 12 months.

    What does Financial Sustainability mean?

    The Australian Local Government Association’s adopted definition of financial sustainability is as follows: 

    “A council’s long-term financial performance and position is sustainable where planned long-term service infrastructure levels and standards are met without unplanned increases in rates or disruptive cuts to services.” 

    It is based on the principles that: 

    • The current generation can “pay their way” by funding the services and infrastructure they use 
    • Investments in new infrastructure and assets funded through borrowings will not over-burden future generations.

    What are the Recovery Principles?

    The recovery principles were adopted by Council in the wake of COVID-19. They are essential considerations as we work together to build the 2021-2022 Business Plan and Budget:

    • our rates, fees and charges approach is fair and equitable
    • financial borrowings adjusted to stimulate growth 
    • proceeds from selling under-performing assets will build a future fund
    • asset renewals will be prioritised based on audit condition and risk
    • asset enhancements will be delivered through partnerships  
    • we will seek Government funding for new infrastructure
    • our service delivery will reflect the needs of the community, and 
    • investment is prioritised to support recovery.

    How much is the expected income for 2021-2022?

    The total funding requirement for this draft Business Plan & Budget is $269.8m made up as follows:

    What are the proposed expenses for 2021-2022?

    The total expenses proposed in this draft Business Plan & Budget is $269.8m made up as follows:

    How will my input make a difference?

    Your contribution may be used to inform the final content of Council’s 2021-2022 Business Plan & Budget.

    How do I provide my submission?

    You can provide feedback by completing the survey on the draft Business Plan and Budget by 9am on Monday 10 May 2021. There are several ways you can do this:

    Online: click here to complete your submission online.

    Email: Written submissions can be emailed to: StrategicPlan@cityofadelaide.com.au 

    In Writing: Written submissions can be posted to:

    Community Consultation 

    Draft 2020-2021 Business Plan & Budget – STAGE 2

    GPO Box 2252 

    Adelaide SA 5001

    Written submissions can also be taken to the Customer Centre, 25 Pirie Street and to any of our libraries and community centres (except Box Factory) during business hours. 

    If you are posting your submission, please allow enough time for Australia Post delivery.

    What happens next?

    All submissions will be acknowledged either by email or in writing so that you know your comments have been received.

    Your input is important to us.

    The City of Adelaide staff will collate all feedback and this report will be presented to Council for consideration as part of finalising the 2021-2022 Business Plan & Budget.