Long Term Financial Plan and Annual Business Plan

The 2022/23 Long Term Financial Plan and Annual Business Plan and budget was adopted by Council on Monday 27 June 2022.

The budget delivers an operating surplus to ensure our financial position is sustainable and equitable between generations of ratepayers and builds capacity for the future. The 2022/23 budget delivers an operating surplus of $1.229M; gross infrastructure investment of $70.2M (including $17.1M of asset renewal) with a net cost of $68M including grants; moderate and sustainable levels of debt, with net financial liabilities of $82.7M or 60.8% of total operating revenue; and an average rate increase of 3.5% on residential properties or 3.9% on commercial and industrial properties.

Purpose

The Long Term Financial Plan and Annual Business Plan (LTFP & ABP) detail Council’s services, including new services and projects, together with their financial impacts. It provides comprehensive information so that the community can consider the budget and how it aligns with the City Plan 2035. An Executive Summary provides a snapshot of the LTFP & ABP and gives guidance as to where more information is available.

Average Rate Increase

The 2022/23 average rate increase is 3.5% for residential properties and 3.9% for commercial and industrial properties. Rates growth from the increase in the number of assessments is anticipated at 0.5%, while rates growth from the increase in development activity is estimated to be 0.5%. As the 2022/23 inflation indicator is based on CPI of 3.3% the average rate increase was consulted at 3.9%. However, with considerable financial pressure on households Council resolved an average residential rate increase of 3.5% and an average commercial and industrial rate increase of 3.9%. Further information about rates is contained in the Rating Strategy and Policy on pages 124 to 127 and in Appendix B – Uniform Presentation of Annual Business Plan and Budget – Rates Disclosure.

Operating Surplus

This year, Council will deliver an Operating Surplus of $1.229M or 0.9 per cent Operating Surplus Ratio. Further information is available in the Budgeted Financial Statements and Analysis on pages 47 to 52.

Financial Sustainability

Being financially sustainable means having:

• The ability to have consistent services in the future

• Infrastructure, like roads, continuing to be maintained at an appropriate level

• Current ratepayers pay the costs associated with the services consumed

• New infrastructure provided to meet community expectations, balanced against increases in costs

We measure financial sustainability through three indicators. The Long Term Financial Plan (pages 16 to 21) shows that Council is budgeting and planning to be sustainable over the coming 10 year period.

Service Provision

The budget delivers an operating surplus to ensure Council’s financial position is sustainable and equitable between generations of ratepayers and builds capacity for the future. The 2022/23 budget delivers:

• An operating surplus of $1.229M
• Gross infrastructure investment of $70.2M (including $17.1M of asset renewal) and a net cost of $68M including grants.
• Moderate and sustainable levels of debt, with net financial liabilities of $82.7M or 60.8% of total operating revenue.

More information about Council’s services is contained in the Key Direction sections of the document, starting on page 56.

Projects and Additional Services

All of Council’s projects and additional services (Budget Bids) are detailed in the LTFP & ABP by category of spending and can be found on pages 24 to 46.

Funds of $17.1M are provided for asset updates/renewal in line with our Asset Management Plans, with significant items being:

• Road reseal and reconstruction $8.1M
• Salisbury Water Asset Renewal $1.2M
• Bridge Program $1.7M
• Building Renewal $1.3M
• Playspace Program $0.6M
• Watercourse and Drainage Management Works $0.8M

Council continues an ambitious infrastructure program in 2022/23 and builds on the work accelerated through its COVID-19 Infrastructure Recovery Program, at the same time increasing service delivery in a number of areas and investing in community assets for the future.

The 2022/23 LTFP & ABP incorporates the exciting redevelopment of the Salisbury Recreation Precinct, which includes the development of a $28.4m Aquatic Centre which will include the construction of an indoor warm water hydrotherapy, lap and leisure pools, a gymnasium, water play park and café.

Other large-scale initiatives that will be important during the 2022/23 Financial Year include:

The completion of the upgrade to Fairbanks Drive Reserve, Paralowie and the delivery of the new clubroom facilities at Yalumba Drive Reserve, Paralowie.

The completion of construction of a new multi-use community facility, commenced in 2021/22, at The Paddocks, one of the most significant recreation and open space precincts within the City of Salisbury. The project will deliver improved connections between residential and recreation areas; provide footpath connections and open sightlines between the residential neighbourhood and the sports ovals to improve safety and accessibility; add a sense of connectivity for residents, and provide improved landscaping and car parking.

The completion, anticipated for early 2022/23, of the Church and John Streets Reviltalisation Project, in accordance with the Salisbury City Centre Church and John Street Improvement Plan community consultation and Salisbury City Centre Renewal Strategy.

Improving the amenity of the City by replacing and upgrading existing street trees with species more appropriate to the space provided within our streets and renewal of verges to complete a more holistic transformation of the streetscape amenity.

Major traffic improvements at the Light Common / Main Street intersection; Helps/Edinburgh Roundabout and similar intersections upgrades to accommodate A-Train, and management of the Ingle Farm Local Area Traffic Management Plan.

Continuation of the City-Wide Trails Program, which aims to deliver a network of 37km of "off road" linked shared use paths and in 2022/23 proposes the development of Dry Creek, Valley View following the completion of the Pauls Drive upgrade, including a shared use path underpass & alternate route connection improvement at the Port Wakefield Road, Dry Creek Underpass which is currently in the design phase.

To discover more about the future plans and initiatives of the City of Salisbury please download the 2022/23 Long Term Financial Plan and Annual Business Plan.