MORNINGTON Peninsula Shire Council last week adopted its 2022-32 Financial Plan as a framework for services and spending over the next 10 years.
The Local Government Act 2020 requires councils to develop and adopt a financial plan for that period.
Chief Financial Officer Bulent Oz said financial planning was the process of aligning financial capacity with long-term service objectives. “This financial plan is our key financial planning document and establishes a sound financial framework for council’s decisions,” he said.
“It is instrumental in ensuring we can deliver enhanced services now and in the future.
“The purpose of this … plan is to provide a 10 year financially sustainable projection as to how the actions of the Council Plan may be funded to achieve the Community Vision.
“The objective is to create a responsible plan that protects our services, protects our ratepayers and safeguards the council’s growth.
“The … plan aims to deliver on the Mornington Peninsula community’s vision for a sustainable, vibrant and prosperous future that values innovation and shared compassion.”
Surpluses will be a feature of council budgets every year for the next decade. Mr Oz said the surpluses would be directed towards funding capital infrastructure to support the shire, particularly in growth areas.
“In 2021 we asked the community to help shape our future and develop a new Community Vision for the peninsula to 2040,” he said. “Over 3000 people became involved providing feedback via surveys, online workshops, township pop-ups, postcards and drawings.
“An independent community panel from across the Mornington Peninsula reviewed the feedback and other information to develop the Community Vision.
“This 10 year Financial Plan is focused on achieving the aims of the Community Vision and will be reviewed annually to ensure continued alignment.”
Key points in the plan are that council’s assets are forecast to increase from $2.8 billion to $2.96 billion by 2032 as a result of capital investment in infrastructure, while expenditure on key programs and services is forecast to be $2.8 billion over the next 10 years.
Underlying surpluses will be a feature every year throughout the 10 year plan. They will be directed towards funding important capital infrastructure to support the municipality, particularly in growth areas.
“Over the next 10 years we will spend $500 million on capital works,” Mr Oz said. “A major component of this investment will be increased open space and ongoing renewal and maintenance of existing assets.
“Predicted savings of $150 million will be made, with our commitment to deliver ongoing efficiencies over the next 10 years, and leisure centres, parks and reserves will be maintained.”
Mr Oz said the council’s $2.8 billion in property, infrastructure, plant and equipment assets’ replacement value would also be maintained.
First published in the Mornington News – 16 November 2021
