What is the Long-Term Financial Plan (LTFP)?

    The LTFP is a 10-year forecast of Council’s financial performance and position based on its strategic plans, anticipated service levels and social, economic, and political indicators. It provides guidance to support Council decision making and confirms that Council has the financial capacity to deliver services, maintain assets, and achieve its strategic objectives in a financially sustainable manner. 

    The LTFP is an integral part of Council’s Strategic Framework. It is built upon the 2021-2022 Business Plan and Budget and is aligned to the City of Adelaide’s 2020-2024 Strategic Plan and will support the detailed Asset Management Plans to be developed over the next two years.

    What is the Strategic Asset Management Plan (SAMP)?

    The SAMP is the high-level integrated framework to deliver on the infrastructure needs and objectives identified in the City of Adelaide Strategic Plan 2020–2024. Below the SAMP sit Asset Management Plans for each of the six categories of assets (Buildings, Lighting and Electrical, Park Lands and Open Space, Transportation, Urban Elements, and Water Infrastructure). Those Asset Management Plans will be established in consultation with our community over the next couple of years.

    What is the relationship between the LTFP and the SAMP?

    Asset Management Plans will project the long-term financial requirements per asset category, and consider funding requirements to monitor, maintain and renew our existing assets, as well as identify the requirement for new and upgraded assets. Financial projections relating to each Asset Management Plan are incorporated into the Long-Term Financial Plan (LTFP).

    How was the LTFP developed?

    The LTFP is a projection of forward performance with consideration of the following:

    • Council’s 2020-2024 Strategic Plan and Strategic Infrastructure and Asset Management Plans, including planned investment in new projects and infrastructure 
    • the social, economic, and political environment including indicators such as population growth, inflationary growth, and interest rates 
    • anticipated changes in future service levels that reflect the needs and expectations of the community 
    • funding and expenses levers available to Council, including revenue and financing guidelines such as Council’s Rating Policy and Treasury Policy
    • revenue opportunities and cost drivers, including the impact of climate change and other factors on the city
    • a rigorous assessment of Councils current financial position and financial sustainability.

    How was the SAMP developed?

    The SAMP is a Strategic Plan to manage Council’s assets and ensure services are provided to the community. It was developed by considering the following: 

    • Council’s 2020-2024 Strategic Plan outcomes which relate to infrastructure 
    • the current condition and performance of infrastructure 
    • current and future trends of the city and how demand for infrastructure may change 
    • the strategic levers that impact the ongoing financial requirements 
    • the Asset Management Policy
    • the prioritisation of assets which will support increased economic activity.

    What are the Recovery Principles?

    Council adopted the recovery principles in the wake of COVID-19. They are essential considerations as we work together to build the 2021-22 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.

    What is the Future Fund?

    A future fund has been established to enable Council to fund the purchase of future income-generating assets and to invest in strategic capital projects. The money going into the future fund will come from the sale proceeds of assets identified through the Strategic Property Review. 

    The Strategic Property Review included a detailed assessment outlining a forward approach for identified property assets. These approaches are grouped into the following categories: 

    • redevelopment or re-purposing of assets to improve public value and to support income-generating and city-shaping initiatives
    • sale of under-performing assets (those assets which provide limited strategic, community and commercial value); and  
    • retention of property assets where no action is currently required.

    On page five of the LTFP you can see when the proceeds of the sale of assets are expected to be available to the future fund.

    How will my input make a difference?

    Your contribution may be used to inform the final content of Council’s Strategic Asset Management Plan and the 2021-2031 Long-Term Financial Plan.

    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 2021-2031 Long-Term Financial Plan and the Strategic Asset Management Plan.