FAQs
How accurate is the Long-term Financial Plan?
Long Term Financial Plans (LTFP) are indicative and developed based on both known and estimated assumptions. When developing an LTFP, the earlier years cost and revenue assumptions can be made with a higher level of certainty than in the outer years.
For example, it is known that the Award increase for the next 2 years will be 4%. We don’t know what it will be after that, so we have made an assumption based on previous trends and also benchmarketing.
In the current ‘two council’ modelling, we have used an assumption of a 3% award increase. This will be reviewed each year and updated when the actual award increase for the period is known. Key assumptions and indices are listed in the LTFP document (pages 7-11).
Depreciation in the North Council has increased from earlier plans. Why is that?
Two significate assets have been completed since the initial financial sustainability plans for the de-amalgamated Councils were developed. These assets are the Aerodrome and Multi-purpose Evacuation Centre. These assets and their depreciation schedule has been included in the revised LTFP.
Why are the proposed rate increases in the South larger than the North?
The South has a significantly smaller rate base than the North, so the cost of services per ratepayer is higher (based on current services and service levels).
Who will approve the first year budget for the new Councils?
The first year budget of the new Councils will be adopted by the current Council prior to June 30 2028.
Community feedback is critical and will help ensure the first-year budget reflects the different needs of the two communities.
The newly elected Councils (following elections in September 2028) will then review budget settings through the quarterly review process as well as develop and adopt the Delivery program and second year's operational budget (2029/30).