Territory Stories

Long term financial plan 2017/18 to 2026/27

Details:

Title

Long term financial plan 2017/18 to 2026/27

Collection

E-Publications; E-Books; PublicationNT

Date

2016

Location

Litchfield Municipality

Description

'This Long Term Financial Plan is designed to ensure that the financial sustainability of Litchfield Council continues to improve over the next 10 Years by supporting sound financial decision making. Sustainability in the context of Litchfield means the community has well maintained facilities and infrastructure and receives good quality services at an affordable level of property rates both now and into the future. The Local Government Act requires Council to prepare and maintain a Long Term Financial Plan (LTFP). The Plan must cover a minimum period of four years however, many of the decisions that Council makes have impacts that go well beyond this time horizon. Litchfield Council has therefore developed a ten-year plan to ensure that the decisions made today are truly sustainable in the long term.' - Executive summary and Introduction; Made available via the Publications (Legal Deposit) Act 2004 (NT).

Table of contents

Executive summary -- Introduction -- Current financial position -- Emerging issues -- The way ahead - improving long term sustainability -- Attachments

Language

English

Subject

Appropriations and expenditures; Public finance; Municipal budgets; Regional planning

Publisher name

Litchfield Council

Place of publication

Freds Pass

Format

16 pages : tables ; 30 cm.

File type

application/pdf.

Copyright owner

Check within Publication or with content Publisher.

Related links

www.litchfield.nt.gov.au

Parent handle

https://hdl.handle.net/10070/299988

Citation address

https://hdl.handle.net/10070/380205

Page content

4 Current Financial Position The following section of the Plan provides analysis of Councils current financial situation based on a set of criteria that are generally accepted measures of sustainability. These measures were used in a report by the accounting firm Deloitte in its Review of Councils Financial Sustainability in the Northern Territory (May 2012). Litchfield Council was not included in that review but the measures are highly relevant. Operating Surplus/Deficit Ratio This ratio expresses the Operating result as published in the annual financial statements as a percentage of total revenue. Ideally, Councils should run modest operating surpluses as this ensures that sufficient revenue is being generated to meet the costs of delivering services and to maintain the value of its assets over time. Large operating deficits indicate that long term sustainability is at risk as there is insufficient funds to maintain assets and infrastructure in an acceptable condition. The graph below sets out the ratio for Litchfield Council in recent years. The result for 2015/16 is artificially low as total revenue for the year was substantially increased by large government grants. This masked the impact of the revaluation of assets and other changes to the calculation of depreciation that occurred in that year. The depreciation expense increased from $8.9 million in 2014/15 to $16.8 million in 2015/16. Further work will be undertaken to ensure the depreciation calculation is as accurate and robust as possible. The full impact of the increase in depreciation can be seen in the 2016/17 budgeted result. Depreciation is a non cash item in the Operating statement but that does not mean it is irrelevant. 0 10 20 30 40 50 60 70 80 90 13/14 14/15 15/16 16/17 Bud 17/18 Bud % Financial Year Operating Deficit as a Percentage of Total Revenue


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