The final draft of the Strategy was presented to Council for endorsement on Tuesday 12 December. This follows a four-week engagement process seeking feedback from the community.
Yarra City Council Mayor, Cr Edward Crossland, was positive about the potential for this sector-leading strategy for Council.
“This strategy is a representation of our commitment to the responsible management of ratepayer’s funds. By making this move we’re ensuring that we can meet the service and infrastructure needs of our community, now and into the future,” Cr Crossland said.
“As the first Victorian council to create a strategy of this nature we hope to demonstrate its positive impacts in the years to come and be a leader in this space.”
The Strategy identifies two main levers for change to ensure Council’s long term financial sustainability:
1. Strategic levers – to ensure that future investment decisions are based on need, underpinned by evidence and guided by informed strategies including detailed asset management plans, contemporary property management and community infrastructure planning and an ongoing program of service reviews.
2. Systemic levers – to manage expenditure, prudent debt management, operational efficiencies and capital works delivery management among others.
The Strategy will guide future decision-making so Council can transparently, proactively and prudently plan to be financially sustainable. It will ensure financial sustainability remains consistent with maximizing our community impact and delivering efficient and effective services and infrastructure and meet our financial obligations both today and in the future.
In the long term, the Financial Sustainability Strategy aims are:
• 0-2 years: Maintain a net positive position by delivering a surplus, ensure our operating activities no longer relies on borrowings, hold costs and start to build cash reserves for specified purposes;
• 3-5 years: Achieve a financial position where Council has sufficient cash reserves to repay borrowings, generate new revenue, can cover all known operating expenses without borrowing, deliver a long-term financial plan that more reliably reflects future financial requirements (‘unknown risks’), and have approximately $20m available in cash reserves for risk and strategic growth; and
• Within 10 years: Ensure that Council has sufficient cash reserves (approximately $30m) to meet unforeseen or emergency expenses and support population growth without relying on borrowing or compromising essential services.
Read the Financial Sustainability Strategy here: Council Meeting | Yarra City Council
