City of Greater Bendigo Annual Budget 2014/2015

8. Strategic Resource Plan and Financial Performance Indicators
This section considers the long term financial projections of the Council. The Act requires a
Strategic Resource Plan to be prepared covering both financial and non-financial resources, and
including key financial indicators for at least the next four financial years to support the Council Plan.
8.1 Plan Development
Council has prepared a Strategic Resource Plan (SRP) for the four years 2014/2015 to 2017/2018 as
part of its ongoing financial planning to assist in adopting a budget within a longer term framework.
The SRP takes the strategic objectives and strategies as specified in the Council Plan and expresses
them in financial terms for the next four years.
The key objective, which underlines the development of the Plan, is financial sustainability in the
medium to long term, while still achieving Council’s strategic objectives as specified in the Council
Plan. The key financial objectives are:
Achieving current or enhanced levels of service.
Maintenance of cash reserves to enable the City of Greater Bendigo to meet its cash outlays
as they fall due.
Maintain a capital expenditure program of at least $40 million per annum, and ensuring
renewal expenditure is not less than depreciation.
Achieve a balanced budget on a cash basis.
Return surplus operating results annually in order to maintain capacity to finance current and
future Council strategies and meet capital investment and renewal requirements.
In preparing the SRP, the Council has also been mindful of the need to comply with the following
Principles of Sound Financial Management as contained in the Act:
Prudently manage financial risks relating to debt, assets and liabilities.
Provide reasonable stability in the level of rate burden.
Consider the financial effects of Council decisions on future generations.
Provide full, accurate and timely disclosure of financial information.
The Plan is updated annually through a rigorous process of consultation with Council service
providers followed by a detailed sensitivity analysis to achieve the key financial objectives.
8.2 Financial Resources
The following table summarises the key financial results for the next four years as set out in the SRP
for years 2014/2015 to 2017/2018. Appendix A includes a more detailed analysis of the financial
resources to be used over the four year period.
Forecast
Actual
2013/2014
$’000
Budget
2014/2015
$’000
Strategic Resource Plan
Projections
2015/2016 2016/2017 2017/2018 Trend
$’000 $’000 $’000 +/o/-
Operating result 8,861 12,569 26,417 27,805 35,909 +
Underlying
(3,826) (1,046) 8,476 8,750 9,238 +
operating result
Cash and
32,883 29,537 29,837 30,400 37,256 o
investments
Cash flows from 31,918 35,683 51,235 55,962 65,823 +
operations
Capital works 47,355 42,686 57,098 58,275 62,053 +
Greater Bendigo City Council Budget – 2014/2015 40