Financial Plan

2021-2031

TABLE OF CONTENTS

1 I

NTRODUCTION

.................................................................................................................................... 2

1.1 Introduction ........................................................................................................................... 2

1.2 Purpose of the Financial Plan ..................................................................................................... 2

1.3 Regulatory Framework ............................................................................................................. 3

2 F

INANCIAL

LAN

ONTEXT

..................................................................................................................... 4

2.1 Strategic Integrated Planning Framework .................................................................................... 4

2.2 Community Vision ................................................................................................................... 5

2.3 Council Plan ........................................................................................................................... 6

2.4 Financial Plan Objectives .......................................................................................................... 6

2.5 Strategic Financial Direction ...................................................................................................... 7

2.6 Financial Policy Statements ....................................................................................................... 8

2.7 Strategic Actions ................................................................................................................... 10

2.8 Assumptions to the Financial Plan Statements ............................................................................ 12

3 F

INANCIAL

LAN

TATEMENTS

.............................................................................................................. 13

3.1 Comprehensive Income Statement ........................................................................................... 13

3.2 Balance Sheet ...................................................................................................................... 13

3.3 Statement of Changes in Equity ............................................................................................... 13

3.4 Statement of Cash Flows ........................................................................................................ 14

3.5 Statement of Capital Works .................................................................................................... 14

3.6 Statement of Human Resources ............................................................................................... 14

3.7 Summary of Planned Human Resources Expenditure ................................................................... 15

4 F

INANCIAL

ERFORMANCE

DICATORS

.................................................................................................. 17

4.1 Key Financial Indicators ......................................................................................................... 17

4.2 VAGO Indicators ................................................................................................................... 17

4.3 Analysis of Financial Indicators ................................................................................................ 18

5 S

TRATEGIES AND

LANS

...................................................................................................................... 19

5.1 Rates and Charges ................................................................................................................ 19

5.1.1

Rate Capping ...................................................................................... 19

5.1.2

Rating Structure .................................................................................. 19

5.1.3

Rates and Charges .............................................................................. 20

5.1.4

Municipal Charge ................................................................................. 21

5.1.5

Public Amenities Cleansing Levy ............................................................. 21

5.1.6

Environmental Service Charge ............................................................... 21

5.1.7

Green Waste Service Charge ................................................................. 21

5.1.8

Budgeted Service Charges .................................................................... 21

5.1.9

Pensioner Rebate ................................................................................ 21

5.2 Borrowing Strategy ............................................................................................................... 22

5.2.1

Borrowing Assessment ......................................................................... 22

5.2.2

Current Debt Position ........................................................................... 22

5.2.3

Future Borrowing Requirements ............................................................. 22

5.3 Reserves Strategy ................................................................................................................. 24

5.3.1

Current Reserves................................................................................. 24

5.3.2

Reserve Usage Projections .................................................................... 24

5.4 Asset Management ................................................................................................................ 25

5.4.1

Infrastructure Assets ............................................................................ 25

5.4.2

Renewal Gap ...................................................................................... 26

5.5 Service Provision and Planning ................................................................................................ 27

5.5.1

Operating Expenditure/Revenue ............................................................. 27

5.6 Growth of Council ................................................................................................................. 27

5.6.1

Population .......................................................................................... 27

5.6.2

Private Dwellings ................................................................................. 29

5.6.3

COVID-19 .......................................................................................... 29

1 INTRODUCTION

1.1 I

NTRODUCTION

The Financial Plan 2021-2031 (FP) reflects Council’s ongoing priority to make Brimbank a truly

diverse community in the heart of the west and a place where people can enjoy living, working and

growing. The next ten year’s are exciting times for our community but it’s not without its

challenges as well.

Council will continue to focus on improving and enhancing our city, investing in ongoing capital

works projects and upgrading facilities and open spaces to ensure the best possible quality of life

for all residents including completing building works and commission of the new St Albans Health

and Wellbeing Hub.

Through Transforming Brimbank Future Priorities 2050, Council is also committed to growing

Brimbank into powerhouse of Melbourne’s west. The Melbourne Airport Rail and Sunshine Super

Hub are transformational infrastructure projects which will generate unprecedented business,

employment, health, education and social opportunities for the region. Combined with the creation

of the Sunshine Priority Precinct and major private investment, Brimbank is being reimagined.

Council is committed to working collaboratively to leverage the coming investment to deliver

positive social, economic and environmental benefits for Brimbank and the surrounding regions.

The COVID-19 pandemic is one of the most serious issues facing our community and our City

today. The safety, health, wellbeing and economic welfare of our residents and staff continues to

remain Council’s top priority. Council will continue to support the recovery of the community

through Stage 2 of our Coronavirus (COVID-19) Response and Recovery Strategy to assist local

businesses, residents and visitors to overcome obstacles and build on strengths as we continue to

recover, rebuild and adjust to a ‘COVID normal’.

In 2020, Council adopted the Brimbank Climate Emergency Plan 2020-2025, which acknowledges

the 21st century as a period of climate emergency, and that this urgent crisis presents an

opportunity for positive social change. Under this Plan, Brimbank commits to lead the community

towards a target of zero net greenhouse gas emissions for Council operations by 2030, and for the

Brimbank municipality by 2040 through a number of actions and initiatives.

The FP outlines Council's objective of being financially sustainable in the short, medium and long

term to delver on future projects and address challenges, while upholding strong financial

management principles by ensuring revenue, expenses, assets, liabilities, investments and financial

transactions are managed in accordance with a Council's financial policies and strategic plans;

financial risks are monitored and managed prudently having regard to economic circumstances;

and financial policies and strategic plans are predictable in the financial impact on the municipal

community.

1.2 P

URPOSE OF THE

INANCIAL

LAN

The purpose of the FP is to guide future strategies and actions to ensure that Council continues to

operate in a sustainable manner.

The FP is designed as a ‘high-level’ summary document that outlines future planning of Council’s

financial outcomes, particularly in relation to key components such as rate levels, service levels to

the community, major infrastructure asset replacement and renewal, loan borrowings and cash

reserves.

The FP is driven by the content of a range of strategic documents prepared by Council including:

•

Brimbank Community Vision 2040

•

Brimbank Council Plan

•

Asset Management Plans (AMPs).

The FP and Council Plan is a guide for future action and encourages Council to consider the impact

hat decisions made today will have on Council’s long-term sustainability.

The FP has been developed to provide the following outcomes for Council:

•

Establish a prudent and sound financial framework, combining and integrating financial

strategies to achieve a planned outcome

•

Establish a financial framework against which Council’s strategies, policies and financial

performance can be measured against

•

Ensure that Council complies with sound financial management principles, as required by

the Victorian

Local Government Act 2020

(the Act)

•

Allow Council to meet the objectives of the Act to promote social, economic and

environmental viability and sustainability of the municipal district (Section 9 (2)(c)) and

maintaining the ongoing financial viability of Council (Section 9 (2)(g)).

The short to medium term objectives of Council’s FP are to:

•

Achieve a prudent balance between meeting the service needs of the community and

remaining financially sustainable for future generations

•

Progressively address the funding gap to increase capital expenditure through the life of the

FP and meet the asset renewal requirements as outlined in the AMPs

•

Ensure that rates, fees and charges are manageable and sustainable

•

Provide a stable level of rates structure in a rate cap environment

•

Loan borrowings are able to be serviced and maintained at a prudent level

•

Maintain a strong cash position and a positive liquidity ratio, ensuring Council remains

financially sustainable in the long term

•

Achieve an underlying operational surplus

•

Continue to pursue funding for strategic capital projects from the State Government and

Federal Government, and

•

Ensure decisions are made having regard to their financial effects on future generations.

The FP is a balanced plan that aims at imbedding the growth that has taken place; it is financially

responsible whilst maintaining services to the community and ensuring financial sustainability for

future generations.

The FP is a dynamic document and it is anticipated that it will be regularly updated as part of

Council’s annual strategic planning and annual budget process and as major changes occur.

1.3 R

EGULATORY

RAMEWORK

Council has a legislative requirement to comply with the financial management principles as

detailed under Section 101 of the Act.

1) The following are the financial management principles:

a) revenue, expenses, assets, liabilities, investments and financial transactions must be

managed in accordance with a Council's financial policies and strategic plans

b) financial risks must be monitored and managed prudently having regard to economic

circumstances

c) financial policies and strategic plans, including the Revenue and Rating Plan, must seek to

provide stability

and predictability in the financial impact on the municipal community

)

accounts and records that explain the financial operations and financial position of the Council must be

kept.

2) For the purposes of the financial management principles, financial risk includes any risk relating

to the following:

a) the financial viability of the Council

b) the management of current and future liabilities of the Council

c) the beneficial enterprises of the Council.

2 FINANCIAL PLAN CONTEXT

This section describes the context and external/internal environment and consideration in

etermining the 10 year financial projections and assumptions.

2.1 S

TRATEGIC

NTEGRATED

LANNING

RAMEWORK

The FP does not operate in isolation from Council’s strategic planning framework but rather

complements this work and acts as a resourcing tool to enable Council to achieve the objectives

outlined in the Community Vision 2040 and the Council Plan.

Council has an integrated planning approach that aligns our strategic, financial and operational

olicies, plans and strategies with the community’s aspirations for Brimbank both now and into the

future.

The integrated planning approach is based on the Community Vision 2040 vision and goals and how

these will be achieved according to the timeframe: short term (annual); medium term (four years);

and long term (10 to 20 years).

The Community Vision 2040 describes the community’s vision and priorities for the future and

establishes a shared basis for planning, service delivery and advocacy undertaken by Council,

service providers, community groups and community members. It provides a framework for the

development of the Council Plan and addressing community health and wellbeing priorities in

partnership with government and health sector organisations.

The Council Plan describes the outcomes Council aims to achieve during its term, the strategies

that will shape its program of work over the next four years and the resources required to achieve

the desired outcomes.

The FP and Annual Budget document the financial resources required to achieve the goals and

strategic objectives in the Council Plan.

The Municipal Strategic Statement provides a strategic vision for our future by setting out

objectives for prospective land use and development in Brimbank.

The Climate Emergency Plan’s principal purpose is to outline Council’s position statement on the

climate emergency, with the aim that this statement orientates social transformation, with Council

taking a municipal leadership role, while promoting action from, and collaboration with, all

quarters.

The Social Justice Charter outlines Council’s commitment is to social justice and human rights and

aims for all Brimbank residents, workers, and visitors to thrive socially and economically regardless

of personal circumstances or where they were born.

A range of policies, plans and strategies are developed, implemented and reviewed by Council on a

regular basis. These guide Council’s roles in planning for services and infrastructure, partnerships

and advocacy and are aligned with the goals and strategic objectives in the Council Plan.

Progress is communicated through the Annual Report.

The integrated planning approach provides a basis for reporting and measuring across all Council

activity on what has been achieved and progress towards meeting the vision for Brimbank.

The diagram below depicts Council’s strategic planning framework:

2.2 C

OMMUNITY

ISION

The Brimbank Community Vision 2040 describes the community’s vision and priorities for the next

20 years. It establishes a shared framework for the community and partner organisations to work

towards, under three themes:

•

People

•

Place

•

Prosperity

The framework is outlined below:

Council places its community first in everything it does. Under the additional theme of Performance,

ouncil measures the success of the strategic objectives within the three themes of the Community

Vision 2040. As an organisation, Council works in ways that demonstrate integrity and

transparency to provide a comprehensive picture of Council’s performance to the community. This

is achieved through quarterly Council Plan Progress Reports, the Brimbank Annual Report and

adherence to the 86 indicators in the Local Government Performance Reporting Framework.

The Community Vision 2040 will be reviewed in 2021, ensuring that it remains aligned with the

community’s aspirations. This provides the opportunity for the four year Council Plan to continue

working towards the aspirations voiced by the Brimbank community.

2.3 C

OUNCIL

LAN

Council and community planning is about envisioning and making choices that will shape the future.

The role of local government is not only one of leadership, but also planning, advocacy and

facilitating community participation.

The Council Plan describes the outcomes Council aims to achieve during its term, the strategies

that will shape its program of work over the next four years and the resources required to achieve

the desired outcomes.

Under the Act, a Council Plan must be prepared every four years after a general election, guided by

deliberative engagement and adopted by the 31 October in the year following.

The Act stipulates that the Council Plan is required to include:

•

The strategic direction of the Council

•

Strategic objectives for achieving the strategic direction

•

Strategies for achieving the objectives for a period of at least the next four financial years

•

Strategic indicators for monitoring the achievement of the objectives

•

A description of the Council’s initiatives and priorities for services, infrastructure and

amenity

•

Any other matters prescribed by the regulations.

2.4 F

INANCIAL

LAN

BJECTIVES

The key objective of the FP is financial sustainability in the medium to long term, while achieving

Council’s Strategic Objectives as specified in the Community Vision and the Council Plan.

The objectives of this FP are as follows (not prioritised):

•

The achievement of meeting the service needs of the community (both now and future) and

remaining financially sustainable for future generations;

•

Progressively addressing the funding gap and increase capital expenditure through the life of

the FP as outlined in the AMPs;

•

Ensuring that rates, fees and charges are manageable and sustainable;

•

Providing a stable level of rates structure;

•

Loan borrowings are able to be serviced and maintained at a prudent level;

•

Maintaining a strong cash position, ensuring Council remains financially sustainable in the

long term;

•

Maintain a positive liquidity ratio;

•

Achieving an underlying operational surplus;

•

Continuing to pursue funding for strategic capital projects from the State Government and

Federal Government; and

•

Ensuring decisions are made having regard to their financial effects on future generations.

In addition to the specific objectives outlined, it is also recognised that sound financial management

an be demonstrated in the diagram below, based on the hierarchy of needs approach:

2.5 S

TRATEGIC

INANCIAL

IRECTION

The FP establishes the strategic financial framework for Council to meet the funding and investment

challenges that lie ahead. It is prepared to ensure that the affordability of activities included in the

Council Plan are considered and budgeted for.

The biggest challenge facing Council will be to maintain services and manage growth at a level to

meet community expectations while rates, being Council’s main source of income, are capped in

line with the Victorian Government’s rate capping system.

Additionally, Council will annually review its borrowing strategy, AMPs, capital investment, capital

works program, the range and level of services provided and the revenue raised relative to user

fees and charges and grants.

Brimbank City Council faces a number of diverse and complex strategic challenges including:

•

Supporting the community through a COVID-19 recovery

•

Renewing and maintaining existing assets

•

Continuing to provide an appropriate range of services to a changing community

•

Maintaining a sound financial position

•

Addressing the need for capital expansion

•

Climate emergency.

The FP will assist in addressing these challenges by informing future planning. The other key

related issue is the risk and liability that Council and the community face if Council does not invest

in asset renewal at an adequate rate (with a minimum desired rate equal to Council’s annual

depreciation charge).

Long Term Sustainability

Defined levels of services

Infrastructure renewal/maintenance & replacement

Meeting the challenge of rate capping

Medium Term Sustainability

Underlying operating surplus

Determining levels of service to be provided

Reducing the asset renewal gap

Short Term Sustainability

Working capital

Cash liquidity

Debt levels

Minimum capital expenditure

The FP represents a comprehensive approach to document and integrate the various financial

trategies of Council. The development of the long-term financial projections represents the output

of several strategic areas that produce the financial direction of Council as shown in the diagram

below. Each of these elements is detailed in the FP.

2.6 F

INANCIAL

OLICY

TATEMENTS

This section defines the measures that demonstrates Council’s financial sustainability in order to

fund the aspirations of the Community Vision 2040 and the Council Plan.

Long Term

inancial

Planning

Investment

Strategy

Borrowing

Strategy

Debt

Strategy

Operationa

l Expenses

Grants &

Fees

Reserve

Funds

Capital

Works

Projects &

Funding

AMPs

Policy Statement Measure Target

Forecast

20/21

21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31

Council achieves an

Underlying Surplus in the

Income Statement

excluding non-recurrent

grants, monetary

contributions and non

monetary assets. ($’000)

Adjusted Underlying

Surplus > $0

>$0 (5,977) (1,303) (5,701) 429 (1,829) (2,380) (1,172) (1,492) (1,794) (1,663) (1,457)

Council’s Liquidity Ratio is

equal to or greater than

1:1

Current

Assets/Current

Liabilities > 1

>1 1.75 1.20 1.10 1.07 0.83 0.75 0.72 0.67 0.63 0.63 0.63

Council’s Self-financing

Ratio is equal to or

greater than 10%.

Net Operating Cash

Flows /Underlying

Revenue => 10%

=>10% 27.53% 30.33% 23.98% 22.17% 22.40% 22.13% 22.11% 22.13% 22.04% 21.95% 21.84%

Council’s Debt Servicing

Ratio is equal to or below

Borrowing Costs/Cash

Revenue =<5%

=<5% 0.85% 0.92% 0.99% 0.93% 0.97% 0.92% 0.66% 0.61% 0.60% 0.46% 0.34%

Council’s Debt

Commitment Ratio is

equal to or below 10%

Principle Repayments

and Borrowing Costs/

Rates =<10%

=<10% 4.86% 6.89% 7.30% 6.17% 6.87% 18.11% 7.83% 7.87% 8.35% 8.12% 5.93%

Council’s indebtedness

ratio is equal to or below

40%

Non-current Liabilities

/Own-source Revenue

=<40%

=<40% 41.50% 39.29% 38.24% 35.16% 26.95% 25.66% 24.67% 21.39% 19.84% 17.98% 15.99%

Council will achieve a

Renewal Gap ratio of 1

Renewal Expenditure

/Depreciation = 1

=1 0.72 0.62 0.53 0.55 0.54 0.36 0.32 0.32 0.50 0.32 0.49

2.7 S

TRATEGIC

CTIONS

The following table highlights the outcomes, strategies and key actions of the FP.

Details

Outcome

Strategy

Action

Financial

Sustainability

That Council is able to

meet current and future

expenditure as it falls

due and also have the

ability to absorb

foreseeable changes and

materialising risks

without significantly

changing revenue and

expenditure policies.

That Council achieve an

underlying surplus in the

Income Statement

excluding non-recurrent

grants, capital

contributions and non

monetary assets.

Council’s liquidity ratio

is equal to or greater

than 1:1.

That the cash position

be sufficient to fund

daily cash requirements

as well as provide

opportunities for funding

of new acquisitions and

short term

contingencies.

Council’s self-financing

ratio is equal to or

greater than 10%.

That Council continue to

undertake service

reviews.

That Council pursues

recurrent grant funding

and capital funding

aligned with Council

Plan objectives.

That Council procure

goods and services in

accordance with Council

Procurement Policy and

procedures.

That Council continue to

implement a

combination of zero

based and incremental

budgeting.

Long Term

Borrowing

Strategies

Loan borrowings are

able to be serviced and

provide services for

current and future

generations.

That Council retains its

debt servicing ratio at or

below 5% over the life

of this FP.

That Council retains its

debt commitment ratio

at or below 10% over

the life of this FP.

That Council retains its

indebtedness ratio at or

below 40% over the life

of this FP.

That Council’s liquidity

ratio is equal to or

greater than 1:1.

Any new loan

borrowings are to be

used to fund capital

investments where the

community benefits are

long term and there is a

financial return to meet

principle interest.

That Council set aside

sufficient funds in a

reserve to repay any

interest only debt in line

with the Loan

Repayment Reserve for

Interest Only Debt –

Major Policy.

Rating and

Other

Revenue

Strategies

Provide a reasonable

degree of consistency,

equity and stability in

the level of the rates

burden and user fees

and charges.

The rating strategy

provides adequate funds

to achieve an underlying

surplus in the Income

Statement excluding

non-recurrent grants,

capital contributions and

non-monetary assets.

That Council retains

Capital Improvement

Value (CIV) as its

valuation base.

That Council retains the

rating structure of seven

differential rates and

Details

Outcome

Strategy

Action

The rating strategy

provides adequate funds

to ensure Council’s

liquidity ratio is equal to

or greater than 1:1.

The rating strategy

provides adequate funds

to fund capital works

and reduce the renewal

gap over a period of

time in accordance with

Council AMPs.

conduct an annual

review, subject to

compliance with

legislative requirements.

That Council review its

municipal charge

annually to ensure an

equitable contribution

towards the

administration and

governance costs of

Council.

That Council benchmark

its discretionary user

fees and charges with

other equivalent

Councils biennially to

ensure comparability to

its benchmark partners.

Asset

Management

and Capital

Works

Program

Assets will be fit for

purpose to provide the

desired level of service

to the community.

That Council have a 10

year capital works

program in accordance

with AMPs and ensure

that adequate and

affordable provision is

made for the creation of

new assets and the

renewal of existing

assets.

That Council will achieve

a renewal gap ratio of

1:1 by 2030.

That Council will

endeavour to achieve an

asset sustainability

index of greater than

1.0.

Council complete/update

AMPs for all classes of

assets with a focus on

ensuring that the assets

are fit for purpose and

provide the required

level of service to the

community.

Capital works proposals

must have a business

case which includes a

lifecycle costing and

meet the objectives of

the Council Plan.

Council conducts

condition audits

biennially on all asset

classes.

Service

Provision and

Planning

Council generates

sufficient surpluses from

operations to continue

to provide the existing

level of services and

meet community

demands and

expectations.

Council continues to

consult with the

community to determine

that the desired service

levels will be achieved

including a combination

of revenue raising and

the rationalisation and

review of existing

service levels.

That Council annually

determines the range

and level of services

provided through the

annual budget process

incorporating an

analysis of the

organisational and

financial capability.

2.8 A

SSUMPTIONS TO THE

INANCIAL

LAN

TATEMENTS

This section presents information in regard to the assumptions to the Comprehensive Income

Statement for the 10 years from 2021/22 to 2030/31.

The table below outlines the annual escalations for the 10 year period for each income and

expenditure line item contained in the Comprehensive Income Statement.

21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31

CPI

1.75% 1.75% 2%

Growth in

properties

- 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75% 0.75%

Rates

1.5% 1.75% 2% 2% 2% 2% 2% 2% 2% 2%

Supplementary

Rates

$600K 1.75% 2% 2% 2% 2% 2% 2% 2% 2%

Service Charges

1.75% 1.75% 2% 2% 2% 2% 2% 2% 2% 2%

Statutory Fees &

Fines

1.75% 1.75% 2% 2% 2% 2% 2% 2% 2% 2%

User Fees &

Charges

4% 4% 4% 4% 4% 4% 4% 4% 4% 4%

Grants - Operating

(recurrent)

1.75% 1.75% 2% 2% 2% 2% 2% 2% 2% 2%

Grants - Operating

(non-recurrent)

Once off payment or payments. Forecast with no increase.

Grants – Capital

(recurrent)

1.75% 1.75% 2% 2% 2% 2% 2% 2% 2% 2%

Grants – Capital

(non-recurrent)

Once off payment or payments. Forecast with no increase.

Contributions -

monetary

1.75% 1.75% 2% 2% 2% 2% 2% 2% 2% 2%

Contributions –

non-monetary

($’000)

1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000

Other Income

1.75% 1.75% 2% 2% 2% 2% 2% 2% 2% 2%

Interest on

Investments

0.49% 0.49% 0.49% 0.49% 0.49% 0.49% 0.49% 0.49% 0.49% 0.49%

Employee Costs

1.5% 1.75% 2% 2% 2% 2% 2% 2% 2% 2%

FBT

1.75% 1.75% 2% 2% 2% 2% 2% 2% 2% 2%

Material &

Services

1.75% 1.75% 2% 2% 2% 2% 2% 2% 2% 2%

Utilities

5% 5% 5% 5% 5% 5% 5% 5% 5% 5%

Bad & Doubtful

Debts

Forecast with no increase.

Depreciation &

Amortisation

Rates are reviewed annually and are based on straight line method.

Borrowing Costs

2% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5% 2.5%

Other Expenses

1.75% 1.75% 2% 2% 2% 2% 2% 2% 2% 2%

3 FINANCIAL PLAN STATEMENTS

3.1 C

OMPREHENSIVE

NCOME

TATEMENT

3.2 B

ALANCE

HEET

3.3 S

TATEMENT OF

HANGES IN

QUITY

COMPREHENSIVE INCOME STATEMENT

Forecast

Budget

year ending 30 June

20/21

21/22

22/23

23/24

24/25

25/26

26/27

27/28

28/29

29/30

30/31

$’000

Revenue

tes and charges

163,913

166,743

170,595

181,136

184,856

189,559

194,386

199,340

204,426

209,645

215,002

Statutory fees and fines

4,487

8,291

8,436

8,605

8,777

8,952

9,131

9,314

9,500

9,690

9,884

User fees

4,216

7,921

12,320

13,702

14,956

15,554

16,176

16,824

17,496

18,196

18,924

Grants - Operating (Recurrent)

24,905

24,350

24,776

25,271

25,777

26,292

26,818

27,354

27,901

28,459

29,029

Grants - Operating (Non-recurrent)

8,248

1,406

4,205

136

139

142

145

148

150

153

157

Grants - Capital (Recurrent)

1,160

1,181

1,202

Grants - Capital (Non-recurrent)

13,839

14,350

1,018

632

642

Contributions - Monetary

4,268

3,533

3,655

3,728

3,803

3,879

3,956

4,035

4,115

4,197

4,211

Contributions - Non monetary assets

3,000

1,000

1,033

1,069

1,106

1,145

1,185

1,227

1,270

1,314

1,360

Net gain on sale of non-current assets

(4,335)

204

207

211

215

219

224

228

233

238

242

Other income

5,497

6,592

6,866

7,026

7,175

7,338

7,393

7,543

7,697

7,850

8,011

229,197

235,550

234,291

242,086

247,465

253,755

259,447

266,046

272,823

279,777

286,855

Expenses

Employee costs

94,598

94,094

99,933

103,793

107,599

111,415

114,749

118,182

121,719

125,361

129,112

Materials and services

68,907

72,540

81,537

78,955

80,566

82,117

82,949

84,798

86,693

88,636

90,629

Bad and doubtful debts

950

Depreciation and amortisation

42,394

42,905

44,584

45,860

47,108

48,438

49,805

51,311

52,720

54,074

55,353

Amortisation - right of use assets

1,395

1,358

1,188

1,204

1,220

1,236

1,253

1,270

1,287

1,304

1,322

Borrowing costs

1,933

2,148

2,313

2,240

2,401

2,324

1,705

1,618

1,634

1,290

976

Finance costs - leases

241

183

125

127

128

130

132

134

135

137

139

Other expenses

3,649

3,793

3,656

3,729

3,782

3,858

3,935

4,014

4,094

4,176

4,260

214,067

217,969

234,286

236,859

243,754

250,469

255,478

262,277

269,232

275,929

282,740

Surplus /(deficit) for the year

15,130

17,580

5,227

3,712

3,286

3,969

3,769

3,591

3,848

4,114

BALANCE SHEET

Forecast

Budget

as at 30 June

20/21

21/22

22/23

23/24

24/25

25/26

26/27

27/28

28/29

29/30

30/31

$’000

Current assets

sh and cash equivalents

70,211

49,549

46,160

40,170

42,780

22,799

21,393

19,990

17,527

16,101

13,663

Trade and other receivables

36,984

26,597

26,963

32,964

33,318

33,764

34,223

34,694

35,177

35,673

36,181

Inventories

Other assets

3,513

110,768

79,720

76,697

76,708

79,671

60,137

59,190

58,257

56,277

55,347

53,418

Non Current Assets

Property, infrastructure, plant and equipment

2,414,981

2,466,971

2,470,109

2,473,416

2,480,132

2,485,230

2,491,722

2,493,266

2,498,854

2,498,391

2,497,694

Right-of-use assets

4,660

3,303

3,115

3,157

3,199

3,242

3,285

3,329

3,374

3,419

3,465

Trade and other receivables

227

2,419,868

2,470,501

2,473,451

2,476,800

2,483,559

2,488,699

2,495,235

2,496,823

2,502,456

2,502,037

2,501,386

Total Assets

2,530,636

2,550,221

2,550,148

2,553,508

2,563,230

2,548,836

2,554,424

2,555,079

2,558,733

2,557,385

2,554,804

Current Liabilities

Trade and other payables

20,337

21,551

24,316

23,718

24,346

24,952

25,308

25,953

26,612

27,262

27,906

Trust funds and deposits

9,015

10,015

11,015

12,015

13,015

14,015

15,015

16,015

17,015

18,015

19,015

Provisions

23,272

23,939

24,589

25,316

26,066

26,838

27,633

28,452

29,295

30,164

31,059

Lease liabilities

1,109

759

456

462

468

474

481

487

493

500

507

Interest bearing loans and borrowings

9,497

10,303

9,088

10,462

32,155

13,631

14,180

15,544

15,823

11,843

6,939

63,230

66,567

69,464

71,973

96,050

79,910

82,617

86,451

89,239

87,785

85,427

Non Current Liabilities

Trust funds and deposits

6,077

Provisions

2,109

2,170

2,230

2,297

2,366

2,437

2,510

2,585

2,663

2,743

2,825

Lease liabilities

3,457

2,366

1,421

1,440

1,459

1,479

1,498

1,518

1,539

1,559

1,580

Interest bearing loans and borrowings

80,465

80,162

78,074

73,612

55,457

53,826

52,646

45,602

42,779

38,936

34,496

92,108

90,776

87,802

83,426

65,359

63,819

62,732

55,783

53,058

49,315

44,979

Total Liabilities

155,338

157,343

157,266

155,399

161,409

143,729

145,349

142,234

142,297

137,101

130,406

Net Assets

2,375,297

2,392,878

2,392,883

2,398,109

2,401,821

2,405,107

2,409,076

2,412,845

2,416,436

2,420,284

2,424,398

Equity

Accumulated Surplus /(Deficit)

1,057,179

1,078,553

1,081,984

1,085,854

1,088,209

1,105,137

1,109,046

1,112,755

1,116,284

1,120,069

1,124,119

Reserves

1,318,118

1,314,324

1,310,899

1,312,255

1,313,612

1,299,970

1,300,030

1,300,090

1,300,152

1,300,215

1,300,279

Total Equity

2,375,297

2,392,878

2,392,883

2,398,109

2,401,821

2,405,107

2,409,076

2,412,845

2,416,436

2,420,284

2,424,398

STATEMENT OF CHANGES IN EQUITY

orecast Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget

as at 30 June

20/21

21/22 22/23

23/24

24/25

25/26

26/27

27/28

28/29

29/30

30/31

$’000

Accumulated Surplus /(Deficit)

Balance at the beginning of the year

1,046,330 1,057,179 1,078,553 1,081,984 1,085,854 1,088,209 1,105,137 1,109,046 1,112,755 1,116,284 1,120,069

Surplus /(deficit) for the year

15,130 17,580

5,227

3,712

3,286

3,969

3,769

3,591

3,848

4,114

Net asset revaluation increment /(decrement)

Transfers to reserves

(6,970) (4,050) (4,098) (4,154) (4,211) (4,269) (3,029) (3,089) (3,151) (3,214) (3,278)

Transfers from reserves

2,690

7,844

7,524

2,798

2,854

17,911

2,969

3,029

3,089

3,151

3,214

Balance at the end of the year

1,057,179 1,078,553 1,081,984 1,085,854 1,088,209 1,105,137 1,109,046 1,112,755 1,116,284 1,120,069 1,124,119

Asset Revaluation Reserve

Balance at the beginning of the year

1,295,908 1,295,908 1,295,908 1,295,908 1,295,908 1,295,908 1,295,908 1,295,908 1,295,908 1,295,908 1,295,908

Surplus /(deficit) for the year

Net asset revaluation increment /(decrement)

Transfers to reserves

Transfers from reserves

Balance at the end of the year

1,295,908 1,295,908 1,295,908 1,295,908 1,295,908 1,295,908 1,295,908 1,295,908 1,295,908 1,295,908 1,295,908

Other Reserves

Balance at the beginning of the year

17,930 22,210

18,416

14,991

16,347

17,704

4,062

4,122

4,182

4,244

4,307

Surplus /(deficit) for the year

Net asset revaluation increment /(decrement)

Transfers to reserves

6,970

4,050

4,098

4,154

4,211

4,269

3,029

3,089

3,151

3,214

3,278

Transfers from reserves

(2,690) (7,844) (7,524) (2,798) (2,854) (17,911) (2,969) (3,029) (3,089) (3,151) (3,214)

Balance at the end of the year

22,210 18,416 14,991 16,347 17,704

4,062

4,122

4,182

4,244

4,307

4,371

3.4 S

TATEMENT OF

ASH

LOWS

3.5 S

TATEMENT OF

APITAL

ORKS

3.6 S

TATEMENT OF

UMAN

ESOURCES

STATEMENT OF CASH FLOWS

Forecast

Budget

year ending 30 June

20/21

21/22

22/23

23/24

24/25

25/26

26/27

27/28

28/29

29/30

30/31

$’000

Cash flows from operating activities

Rates and charges

166,335

172,130

175,229

180,135

184,502

189,112

193,927

198,870

203,943

209,149

214,493

Statutory fees & fines

4,487

8,291

8,436

8,605

8,777

8,952

9,131

9,314

9,500

9,690

9,884

User charges

4,216

7,921

12,320

13,702

14,956

15,554

16,176

16,824

17,496

18,196

18,924

Grants

48,151

41,266

31,179

26,609

26,578

27,107

26,995

27,535

28,086

28,647

29,220

Contributions - monetary

4,268

3,533

3,655

3,728

3,803

3,879

3,956

4,035

4,115

4,197

4,211

Other receipts

5,497

6,592

6,866

7,026

7,175

7,338

7,393

7,543

7,697

7,850

8,011

Employee costs

(94,598)

(93,365)

(99,225)

(102,999)

(106,780)

(110,572)

(113,881)

(117,288)

(120,798)

(124,412)

(128,135)

Materials and services

(72,489)

(71,486)

(78,928)

(79,704)

(80,099)

(81,667)

(82,708)

(84,262)

(86,143)

(88,073)

(90,051)

Trust funds and deposits

1,000

Other payments

(4,599)

(4,743)

(4,606)

(4,679)

(4,732)

(4,808)

(4,885)

(4,964)

(5,044)

(5,126)

(5,210)

62,267

71,139

55,927

53,423

55,179

55,896

57,106

58,607

59,852

61,118

62,348

Cash flows from investing activities

Payments for property, infrastructure, plant & equipment

(91,429)

(89,656)

(53,162)

(53,537)

(53,166)

(52,848)

(55,580)

(52,108)

(57,529)

(52,797)

(53,809)

Proceeds from sale of property, infrastructure, plant &

equipment

700

1,147

805

821

837

854

871

888

906

924

943

(90,729)

(88,509)

(52,357)

(52,716)

(52,329)

(51,995)

(54,709)

(51,219)

(56,623)

(51,873)

(52,866)

Cash flows from financing activities

Finance costs

(1,803)

(1,988)

(2,158)

(2,090)

(2,239)

(2,168)

(1,591)

(1,509)

(1,524)

(1,204)

(910)

Proceeds from interest bearing loans and deposits

33,350

10,000

7,000

6,000

14,000

12,000

13,000

8,500

13,000

8,000

2,500

Repayment of interest bearing loans and deposits

(6,168)

(9,497)

(10,303)

(9,088)

(10,462)

(32,155)

(13,631)

(14,180)

(15,544)

(15,823)

(11,843)

Interest paid - lease liability

(241)

(183)

(125)

(127)

(128)

(130)

(132)

(134)

(135)

(137)

(139)

Repayment of lease liabilities

(1,708)

(1,623)

(1,373)

(1,392)

(1,410)

(1,429)

(1,449)

(1,468)

(1,488)

(1,508)

(1,528)

23,431

(3,291)

(6,959)

(6,697)

(240)

(23,883)

(3,802)

(8,791)

(5,691)

(10,671)

(11,920)

Net (decrease)/increase in cash held

(5,032)

(20,661)

(3,389)

(5,990)

2,610

(19,981)

(1,405)

(1,404)

(2,463)

(1,426)

(2,439)

Cash at beginning of the year

75,243

70,211

49,549

46,160

40,170

42,780

22,799

21,393

19,990

17,527

16,101

Cash at the end of the year

70,211

49,549

46,160

40,170

42,780

22,799

21,393

19,990

17,527

16,101

13,663

STATEMENT OF CAPITAL WORKS

Forecast

Budget

year ending 30 June

20/21

21/22

22/23

23/24

24/25

25/26

26/27

27/28

28/29

29/30

30/31

$’000

Property

-Land

1,200

1,018

1,035

1,053

1,070

1,088

1,105

1,123

1,140

1,158

Buildings

37,563

46,368

6,153

7,442

7,417

10,243

15,907

13,539

9,937

15,769

7,269

38,763

46,368

7,171

8,477

8,470

11,313

16,995

14,644

11,059

16,909

8,427

Plant and Equipment

Plant, machinery and equipment

3,731

3,140

2,691

2,528

4,365

3,043

5,847

5,275

3,259

3,429

3,544

Computers and telecommunications

796

197

509

518

526

535

544

553

561

570

579

Library books

847

800

814

828

842

856

870

884

898

912

926

5,374

4,137

4,014

3,873

5,733

4,434

7,260

6,711

4,719

4,911

5,049

Infrastructure

Roads

26,514

20,864

27,300

28,209

28,328

19,339

19,471

19,923

30,403

20,877

31,351

Footpaths and cycleways

1,866

4,301

1,038

1,418

2,042

3,745

2,490

1,149

1,448

1,471

683

Drainage

1,446

730

967

983

1,000

1,017

1,033

1,050

1,066

1,083

1,100

Recreational, leisure and community facilities

6,335

2,372

7,855

4,533

2,210

4,120

2,501

4,597

4,164

2,690

2,847

Parks, open space and streetscapes

11,132

10,884

4,818

6,043

5,384

8,881

5,829

4,033

4,670

4,856

4,352

47,292

39,150

41,977

41,187

38,964

37,101

31,325

30,752

41,751

30,977

40,333

91,429

89,656

53,162

53,537

53,166

52,848

55,580

52,108

57,529

52,797

53,809

Renewal

30,653

26,592

23,808

25,369

25,422

17,203

15,932

16,269

26,576

17,352

27,309

New/expansion/upgrade

60,776

63,064

29,354

28,168

27,744

35,646

39,648

35,838

30,954

35,445

26,500

91,429

89,656

53,162

53,537

53,166

52,848

55,580

52,108

57,529

52,797

53,809

STATEMENT OF HUMAN RESOURCES

Forecast

Budget

year ending 30 June

2021

21/22

22/23

23/24

24/25

25/26

26/27

27/28

28/29

29/30

30/31

$’000

Staff Expenditure

ployee costs - operating

94,598

94,094

99,933

103,793

107,599

111,415

114,749

118,182

121,719

125,361

129,112

Employee costs - capital

Total staff expenditure

94,598

94,094

99,933

103,793

107,599

111,415

114,749

118,182

121,719

125,361

129,112

Staff numbers

Employees

843.30 918.96 988.26 980.71 980.71 979.71 979.71 979.71 979.71 979.71 979.71

Total staff numbers

843.30 918.96 988.26 980.71 980.71 979.71 979.71 979.71 979.71 979.71 979.71

3.7 S

UMMARY OF

LANNED

UMAN

ESOURCES

XPENDITURE

21/22

22/23

23/24

24/25

25/26

26/27

27/28

28/29

29/30

30/31

$'000

Employee Expenses

Consolidated

Permanent - Full time

54,909

57,275

59,910

61,968

64,096

66,019

67,999

70,039

72,141

74,305

Female

20,214

22,956

24,235

25,070

25,928

26,706

27,508

28,333

29,183

30,059

Male

30,894

33,977

35,675

36,898

38,167

39,312

40,492

41,707

42,958

44,247

Vacant

3,801

342

Permanent - Part time

17,869

18,496

19,135

19,795

20,471

21,085

21,718

22,369

23,041

23,732

Female

14,566

15,806

16,352

16,916

17,494

18,018

18,559

19,116

19,689

20,280

Male

1,917

2,690

2,783

2,879

2,978

3,067

3,159

3,254

3,351

3,452

Vacant

1,386

Casuals, temporary and other expenditure

21,316

24,163

24,748

25,835

26,848

27,645

28,465

29,310

30,180

31,076

Total Brimbank City Council

94,094

99,933

103,793

107,599

111,415

114,749

118,182

121,719

125,361

129,112

Office of the Chief Executive Officer

Permanent - Full time

112

116

120

124

128

132

136

140

144

149

Female

112

116

120

124

128

132

136

140

144

149

Male

Vacant

Permanent - Part time

Female

Male

Vacant

Casuals, temporary and other expenditure

391

404

418

433

448

461

475

489

504

519

Total Office of the Chief Executive Officer

503

520

538

557

576

593

611

629

648

668

Organisational Excellence

Permanent - Full time

5,195

5,343

5,519

5,710

5,909

6,086

6,269

6,457

6,651

6,850

Female

3,059

3,201

3,306

3,421

3,540

3,646

3,756

3,868

3,984

4,104

Male

2,030

2,142

2,212

2,289

2,369

2,440

2,513

2,589

2,666

2,746

Vacant

105

Permanent - Part time

380

391

404

418

433

446

459

473

487

502

Female

296

305

315

326

337

347

357

368

379

391

Male

102

105

108

111

Vacant

Casuals, temporary and other expenditure

2,740

2,346

2,255

2,326

2,400

2,463

2,528

2,595

2,663

2,733

Total Organisational Excellence

8,316

8,081

8,178

8,455

8,741

8,995

9,256

9,524

9,801

10,085

City Development Division

Permanent - Full time

7,213

7,538

7,797

8,064

8,340

8,590

8,848

9,113

9,387

9,668

Female

3,350

3,757

3,885

4,018

4,156

4,281

4,409

4,541

4,677

4,818

Male

3,374

3,782

3,912

4,046

4,184

4,309

4,439

4,572

4,709

4,850

Vacant

489

Permanent - Part time

2,656

2,743

2,837

2,934

3,034

3,125

3,219

3,316

3,415

3,518

Female

2,460

2,541

2,628

2,718

2,811

2,895

2,982

3,071

3,164

3,258

Male

196

202

209

216

224

230

237

244

252

259

Vacant

Casuals, temporary and other expenditure

3,866

3,890

4,025

4,165

4,310

4,439

4,572

4,709

4,851

4,996

Total City Development Division

13,735

14,171

14,659

15,163

15,684

16,154

16,639

17,138

17,652

18,182

Community Wellbeing Division

Permanent - Full time

12,457

12,923

13,370

13,832

14,304

14,733

15,175

15,630

16,099

16,582

Female

8,387

9,141

9,457

9,784

10,117

10,421

10,733

11,055

11,387

11,729

Male

3,231

3,782

3,913

4,048

4,186

4,312

4,441

4,575

4,712

4,853

Vacant

838

Permanent - Part time

12,369

12,818

13,261

13,720

14,188

14,613

15,052

15,503

15,968

16,447

Female

9,511

10,551

10,915

11,293

11,678

12,028

12,389

12,761

13,143

13,538

Male

1,541

2,268

2,346

2,427

2,510

2,585

2,663

2,743

2,825

2,910

Vacant

1,318

Casuals, temporary and other expenditure

7,993

11,095

11,307

11,932

12,347

12,718

13,099

13,492

13,897

14,314

Total Community Wellbeing Division

32,820

36,836

37,938

39,484

40,839

42,064

43,326

44,626

45,965

47,343

Advocacy, Partnerships & Community

Permanent - Full time

4,955

5,237

5,416

5,602

5,794

5,967

6,147

6,331

6,521

6,716

Female

3,472

3,981

4,117

4,258

4,404

4,536

4,672

4,812

4,957

5,105

Male

834

1,256

1,299

1,344

1,390

1,431

1,474

1,519

1,564

1,611

Vacant

649

Permanent - Part time

1,567

1,617

1,673

1,730

1,789

1,843

1,898

1,955

2,014

2,074

Female

1,499

1,583

1,637

1,693

1,751

1,804

1,858

1,914

1,971

2,030

Male

Vacant

Casuals, temporary and other expenditure

2,114

2,064

2,136

2,210

2,287

2,356

2,427

2,500

2,575

2,652

Total Advocacy, Partnerships & Community

8,637

8,918

9,225

9,542

9,870

10,166

10,471

10,785

11,109

11,442

Infrastructure and City Services

Permanent - Full time

24,977

26,118

27,688

28,635

29,622

30,510

31,426

32,368

33,339

34,340

Female

1,834

2,761

3,349

3,464

3,583

3,691

3,801

3,915

4,033

4,154

Male

21,424

23,015

24,339

25,171

26,039

26,820

27,624

28,453

29,307

30,186

Vacant

1,719

342

Permanent - Part time

896

926

960

993

1,027

1,058

1,090

1,122

1,156

1,191

Female

800

827

857

886

917

944

973

1,002

1,032

1,063

Male

100

103

107

110

114

117

121

124

128

Vacant

Casuals, temporary and other expenditure

4,211

4,363

4,607

4,770

5,056

5,208

5,364

5,525

5,691

5,861

Total Infrastructure and City Services

30,083

31,407

33,255

34,398

35,705

36,776

37,879

39,016

40,186

41,392

Total employee expenses

94,094

99,933

103,793

107,599

111,415

114,749

118,182

121,719

125,361

129,112

21/22

22/23

23/24

24/25

25/26

26/27

27/28

28/29

29/30

30/31

FTE

Staff FTE Numbers

Consolidated

Permanent - Full time

526.2

542.2

Female

187.2

210.6

215.6

Male

298.3

321.6

326.6

Vacant

40.8

10.0

0.0

Permanent - Part time

220.3

227.2

Female

153.9

174.6

Male

32.0

52.6

Vacant

34.4

0.0

Casuals, temporary and other expenditure

172.4

218.8

211.2

210.2

Total Consolidated

919.0

988.3

980.7

979.7

Office of the Chief Executive Officer

Permanent - Full time

1.0

Female

1.0

Male

0.0

Vacant

0.0

Permanent - Part time

0.0

Female

0.0

Male

0.0

Vacant

0.0

Casuals, temporary and other expenditure

1.0

Total Office of the Chief Executive Officer

2.0

Organisational Excellence

Permanent - Full time

44.2

Female

27.2

27.7

Male

16.0

16.5

Vacant

1.0

0.0

Permanent - Part time

3.8

Female

3.0

Male

0.8

Vacant

0.0

Casuals, temporary and other expenditure

26.4

22.6

21.4

Total Organisational Excellence

74.4

70.6

69.4

City Development Division

Permanent - Full time

66.0

Female

32.0

34.5

Male

29.0

31.5

Vacant

5.0

0.0

Permanent - Part time

34.0

Female

32.1

Male

1.8

Vacant

0.0

Casuals, temporary and other expenditure

26.5

Total City Development Division

126.4

Community Wellbeing Division

Permanent - Full time

118.4

124.4

Female

78.0

86.1

Male

30.3

38.3

Vacant

10.2

0.0

Permanent - Part time

158.9

165.8

Female

96.8

117.1

Male

28.3

48.7

Vacant

33.8

0.0

Casuals, temporary and other expenditure

75.1

121.7

117.9

Total Community Wellbeing Division

352.4

412.0

408.2

Advocacy, Partnerships & Community

Permanent - Full time

45.6

Female

31.0

34.3

Male

8.0

11.3

Vacant

6.6

0.0

Permanent - Part time

15.5

Female

14.9

15.2

Male

0.0

0.3

Vacant

0.6

0.0

Casuals, temporary and other expenditure

15.0

Total Advocacy, Partnerships & Community

76.1

Infrastructure and City Services

Permanent - Full time

251.0

261.0

Female

18.0

27.0

32.0

Male

215.0

224.0

229.0

Vacant

18.0

10.0

0.0

Permanent - Part time

8.2

Female

7.2

Male

1.0

Vacant

0.0

Casuals, temporary and other expenditure

28.5

32.0

29.5

28.5

Total Infrastructure and City Services

287.7

301.2

298.7

297.7

Total staff FTE numbers

919.0

988.3

980.7

979.7

4 FINANCIAL PERFORMANCE INDICATORS

4.1 K

INANCIAL

NDICATORS

The following table highlights Council’s projected performance across a range of key performance

indicators. These indicators provide an analysis of Councils’ 10 year financial projections and should

be interpreted in the context of the organisations objectives and financial management principles.

4.2 VAGO I

NDICATORS

Analysis within the FP will be based on the financial indicators that the Victorian Auditor General’s

Office (VAGO) uses to ensure Local Government remains financially sustainable. These indicators

are as follows:

Underlying result

Council generates enough revenue to cover operating costs and

depreciation

Liquidity

Council has sufficient working capital to meet short-term commitments

Self-financing

Council generates sufficient operating cash flows to invest in asset

renewal and repay debt it may have incurred in the past

Indebtedness

Council is not overly reliant on debt to fund capital programs

Capital replacement

Council has been replacing assets at a rate consistent with their

consumption

Renewal gap

Council has been maintaining existing assets at a consistent rate

Risk

Underlying

Result

Liquidity Self-financing Indebtedness

Capital

Replacement

Renewal Gap

Formula

Adjusted net

surplus /total

underlying

revenue

Current

assets

/current

liabilities

Net operating

cash flows

/underlying

revenue

Non-current

liabilities

/own-source

revenue

Capital

expenditure

/depreciation

Renewal

expenditure

/depreciation

High

Negative 10%

or less

Equal to or

less than

1.0

Less than 10% More than 60%

Equal to or less

than 1.0

Equal to or less

than 0.5

Medium

Negative 10%

to 0%

1.0 to 1.5 10% to 20% 40% to 60%

1.0 to 1.5

0.5 to 1.0

Forecast

Budget

20/21

21/22

22/23

23/24

24/25

25/26

26/27

27/28

28/29

29/30

30/31

Expenditure level

2,731

2,757

2,941

2,951

3,015

3,075

3,113

3,172

3,232

3,287

3,344

Revenue level

1,153

1,180

1,192

1,207

1,222

1,237

1,252

1,268

1,284

1,300

1,316

Adjusted underlying Surplus/Deficit excluding non

recurrent grants, monetary and non-monetary

contributions ($'000)

(5,977)

(1,303)

(5,701)

429

(1,829)

(2,380)

(1,172)

(1,492)

(1,794)

(1,663)

(1,457)

Underlying Result ($'000)

15,130

17,580

5,227

3,712

3,286

3,969

3,769

3,591

3,848

4,114

Cash Balances ($'000)

70,211

49,549

46,160

40,170

42,780

22,799

21,393

19,990

17,527

16,101

13,663

Cash Flow From Operations ($'000)

62,267

71,139

55,927

53,423

55,179

55,896

57,106

58,607

59,852

61,118

62,348

Total Borrowings ($'000)

89,962

90,465

87,162

84,074

87,612

67,457

66,826

61,146

58,602

50,779

41,436

Capital Expenditure ($'000)

91,429

89,656

53,162

53,537

53,166

52,848

55,580

52,108

57,529

52,797

53,809

Debt servicing ratio

0.85%

0.92%

0.99%

0.93%

0.97%

0.92%

0.66%

0.61%

0.60%

0.46%

0.34%

Debt commitment ratio

4.86%

6.89%

7.30%

6.17%

6.87%

18.11%

7.83%

7.87%

8.35%

8.12%

5.93%

Debt exposure

5.70%

5.58%

5.29%

5.02%

5.15%

3.90%

3.81%

3.43%

3.23%

2.76%

2.22%

Adjusted working capital ratio

235.98%

160.05%

146.78%

141.39%

102.40%

98.39%

93.55%

87.56%

81.88%

83.02%

83.88%

Adjusted underlying result

-2.87%

-0.60%

-2.49%

0.18%

-0.76%

-0.96%

-0.46%

-0.57%

-0.67%

-0.61%

-0.52%

Unrestricted cash

41.00%

22.59%

20.26%

7.96%

6.23%

-1.70%

-4.63%

-7.27%

-10.99%

-14.01%

-18.50%

Loans and borrowings(Debt compared to Rates)

54.88%

54.25%

51.09%

46.41%

47.39%

35.59%

34.38%

30.67%

28.67%

24.22%

19.27%

Rates concentration

78.77%

76.96%

74.63%

76.34%

76.41%

76.44%

Rates effort

0.00%

Workforce turnover

16.65%

15.59%

15.13%

Key Financial Indicators

Risk

Underlying

Result

Liquidity Self-financing Indebtedness

Capital

Replacement

Renewal Gap

Low

More than 0%

More than

1.5

20% or more 40% or less More than 1.5 More than 1.0

4.3 A

NALYSIS OF

INANCIAL

NDICATORS

For the financial year 2020/21, the Victorian State Government announced a rate increase of 2%.

At the August 2020 Ordinary Council Meeting, Council adopted a 0% rate increase. The below table

outlines the incremental annual income foregone and the cumulative income foregone over the

term of the FP.

•

The accumulated income forgone due to a 0% increase in 2020/21 over the term of the FP

is $32M

•

From the financial year 2024/25 the Liquidity Ratio is under 1 (0.83) due to the impact of 10

years of rate capping, the compounded impact of a zero rate increase for 2020/21, and the

recognition of State Government Funding Vehicle principle loan repayment in 2025/26.

Future Councils will need to review and asses the Liquidity Ratio and make decisions to

address the risk level including, reducing services, revising capital expenditure or taking up

additional borrowings considering Council’s Indebtedness Risk Ratio trending low over the

term of this Financial Plan.

•

From 2024/25 the Liquidity Ratio enters the High Risk category, where current liquid assets

do not cover current liabilities. From this point the liquidity risk increases each year from

0.83 in 2024/25 to 0.63 in 2030/31

•

Our Loan Indebtedness Ratio is in the Low Risk category over the period of the 10 year

financial plan

•

Capital Expenditure is maintained at a reasonable level, greater than $50 million over the

period of the 10 year financial plan.

Forecast

Budget

20/21

21/22

22/23

23/24

24/25

25/26

26/27

27/28

28/29

29/30

30/31

Underlying Result

-2.64%

-0.56%

-2.44%

0.18%

-0.74%

-0.94%

-0.45%

-0.56%

-0.66% -0.60%

-0.51%

Liquidity Ratio

1.75

1.20

1.10

1.07

0.83

0.75

0.72

0.67

0.63

Self financing

27.53%

30.33%

23.98%

22.17%

22.40%

22.13%

22.11%

22.13%

22.04%

21.95%

21.84%

Indebtedness

41.50%

39.29%

38.24%

35.16%

26.95%

25.66%

24.67%

21.39%

19.84%

17.98%

15.99%

Capital Replacement

2.16

2.09

1.19

1.17

1.13

1.09

1.12

1.02

1.09

0.98

0.97

Renewal Gap

0.72

0.62

0.53

0.55

0.54

0.36

0.32

0.50

0.32

0.49

GO Financial Indicators

Forecast

Budget

Year ending 30 June

2021

21/22

22/23

23/24

24/25

25/26

26/27

27/28

28/29

29/30

30/31

$’000

Revenue

Rates (as per 2021/22 Financial Plan) 130,956

133,642

136,983

140,750

144,621

148,598

152,685

156,883

161,198

165,631

170,186

Rates adjusted for 2% rate increase in 2020/21

133,575

136,246

139,652

143,493

147,439

151,494

155,660

159,940

164,339

168,858

173,501

Incrimental Variance

(representing rates foregone each year)

(2,619)

(2,604)

(2,669)

(2,742)

(2,818)

(2,895)

(2,975)

(3,057)

(3,141)

(3,227)

(3,316)

Cumulative Variance

(representing accumulative rates foregone since FY2021)

(2,619)

(5,223)

(7,892)

(10,634)

(13,452)

(16,348)

(19,323)

(22,379)

(25,520)

(28,747)

(32,063)

Budget 2021/22: General Rate's % Growth Assumption

2.00%

2.50%

2.75%

5 STRATEGIES AND PLANS

5.1 R

ATES AND

HARGES

5.1.1 Rate Capping

In 2015, the Victorian Government established the Fair Go Rates System resulting in the

introduction in 2016/2017 of a rate cap, which limits the amount Councils can increase rates in a

financial year.

The Minister for Local Government sets the average rate cap (ARC) based on the forecast change in

the consumer price index (CPI) over the related financial year as published by the Department of

Treasury and Finance (DTF) in December, plus or minus any adjustments. Councils can seek

approval to raise an increase above this figure through a variation with the Essential Services

Commission.

The

Local Government Act 1989

outlines that the rating system provides a “Reasonable degree of

stability in the level of the rates burden”, and that it is developed in a context of a public finance

methodology, which includes principles of equity, benefit, efficiency and community resource

allocation.

The Act requires Council to develop a Revenue and Rating Plan every four financial years that

meets the above objectives.

On 21 December 2020, the Minister for Local Government, the Hon Shaun Leane MP, advised an

annual rate for the 2021/22 financial year of 1.5 per cent. Councils can seek approval to raise an

increase above this figure through a variation with the Essential Services Commission. Brimbank

City Council has decided not to apply for a variation to the 2021/22 rate cap.

The forecast rate movements in total rate revenue over the next 10 years will be capped at the

percentage increase consistent with CPI and the rate cap as announced by the Minister in

December 2020.

Any unforeseen situations that may arise will be dealt with via the Annual Budget review.

5.1.2 Rating Structure

Council has developed a Revenue and Rating Plan to be formally adopted as part of the budget

process. The Act provides a Council must adopt a Revenue and Rating Plan for a period of at least

four financial years by the 30 June after a general election.

The Revenue and Rating Plan is a new requirement. It is for a 4-year ‘block’ period starting on 30

June in the year after each general election. It provides a medium-term plan for how Council will

generate income to deliver on the Council Plan, program and services and capital works

commitments over a 4-year period. It defines the revenue and rating ‘envelope’ within which

Council propose to operate.

It incorporates the consideration of:

•

How revenue will be generated through rates on properties (including differential rates on

different property classes)

•

Fixed service charges that apply on services such as waste or recycling

•

Fees and charges for services and programs – including pricing policies

•

Developer contributions and other revenue

•

Revenue generated from use or allocation of Council assets (including the application of

discounts and waivers)

•

Recurrent and non-recurrent operational and capital grants from other levels of

government.

Type of differentials and the rate multiplier:

Type of Property

Rate Multiplier

Residential

x1.17

Commercial/Industrial

x2.47

Farm Land

Lowest Rate

Residential Flats/Units

x1.17

Vacant Land

x2.44

Commercial/Industrial Vacant Land

x4.00

Retirement Village

x1.09

Culture Recreation Land

x1.25

When determining what valuation to use when calculating rates Council uses the Capital Improved

alue. Council is provided property valuations by the Valuer-General annually as required by

the

Valuation of Land Act 1960

. These ensure the value we place on each property is up-to-date

and reflects its current market value.

5.1.3 Rates and Charges

Rates and Charges revenue is an integral part of the Council’s revenue base, the value of which is

determined through Council’s desire to achieve the strategies articulated in its various adopted

Plans.

General Rates and Charges currently comprise approximately 75% of total operating revenue, and

this is projected to remain constant throughout the plan period; however it would be desirable to

reduce this strong dependence on rate income.

Rate increases in the FP are projected at the percentage increase consistent with CPI and the rate

cap as announced by the Minister in December 2020 which currently is 1.5 per cent.

There are no projections that Council will apply for a variation to the rate cap at this stage,

however, if Council decides to proceed with projects that are outside the FP then a variation to the

rate cap will need to be considered as a potential funding source.

The graph below provides details of rates revenue increases from 2010/11 to 2021/22 and

proposed rates and charges revenue increases for the next 10 years.

5.04%

6.09%

6.65%

6.80%

6.65%

5.40%

2.50%

2.00%

2.25%

2.50%

0.00%

1.50%

1.75%

2.00%

5.1.4 Municipal Charge

The Municipal Charge, raised in accordance with Section 159 of the

Local Government Act 1989

, is

applied to each rateable property to allow Council to recover part of its administrative cost.

Legislation requires that this amount cannot exceed 20% of the total rates raised (including rates

and municipal charge).

In 2021/22 the Council municipal charge is anticipated to be at 4.58% of total rates revenue.

Administrative costs including finance, asset management, information systems, corporate records,

human resources and governance will be supported by this income.

5.1.5 Public Amenities Cleansing Levy

The Waste Management Levy applies to all rateable occupancies to ensure that all rateable

occupancies fairly contribute to the cost of street sweeping, waste and rubbish collection and

disposal from public places.

5.1.6 Environmental Service Charge

Environmental Service Charges directly funds the collection and disposal of household waste and

recyclables. All residential, residential flats/units and retirement village units will incur a 140 litre

Environmental Charge for the provision of a domestic garbage bin and recycling service, including

non-rateable occupancies. Residents may request an 80 litre domestic garbage bin to replace this

service with Environmental Charges to be adjusted from the date that the bins are replaced.

5.1.7 Green Waste Service Charge

The Green Waste Service Charges are available to all residential, residential flat/unit and retirement

village units and directly funds the collection and disposal of green waste. Residents may request a

140 litre or 240 litre Green Waste bins.

5.1.8 Budgeted Service Charges

The budgeted charges for 2021/22 are as follows:

*No Longer available/existing clients only

Service Charge Type

Rate ($)

Public Amenities Cleansing Levy

87.60

80 Litre Environmental Charge

188.07

140 Litre Environmental Charge

304.30

240 Litre Environmental Charge *

546.30

140 Litre Green Waste Charge

95.24

240 Litre Green Waste Charge

104.64

5.1.9 Pensioner Rebate

Brimbank’s rating structure also provides a pensioner rebate of $25.00. Details of the current

number of estimated growth and the forecast pensioner rebate are detailed in the following table.

21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31

Residential

Properties

70,326 70,624 71,021 71,420 71,822 72,226 72,632 73,041 73,451 73,864

Properties

Rebated (%)

23% 23% 23% 23% 23% 23% 23% 23% 23% 23%

21/22 22/23 23/24 24/25 25/26 26/27 27/28 28/29 29/30 30/31

Concessions

16,175 16,244 16,335 16,427 16,519 16,612 16,705 16,799 16,894 16,989

Cost to

Council ($)

404,375 406,088 408,371 410,665 412,977 415,300 417,634 419,986 422,343 424,718

5.2 B

ORROWING

TRATEGY

In developing the FP, borrowings were identified as an important source for the capital works

program, and the cost of infrastructure should not be borne entirely by present ratepayers but be

contributed to by future generations that will also derive a benefit.

The FP has made provision for new borrowings over the next 10 years and a provision has been

made to refinance part of our existing borrowings as they come due.

5.2.1 Borrowing Assessment

The use of loan borrowings as a funding source for the budget and FP warrants careful

consideration and is best applied within a financial strategy framework where the use of loan

borrowings is governed by a set of principles which are further reinforced by a set of financial ratios

which ensure that debt levels are retained within manageable levels.

Prior to undertaking any borrowings, Council needs to assess its repayment capacity so that the

community is not burdened with unnecessary risk.

The basis for determining the utilisation of loan borrowings is as follows:

•

Renewal, replacement or new infrastructure to meet specific needs agreed to by the Council

•

Meet the Brimbank Council Plan strategic objectives

•

All loan borrowings are able to be adequately serviced over the life of the loan

•

The term of any loan will not exceed the expected life of the asset being funded

•

All loan borrowings will be in accordance with Section 101 of the Act;

•

Growth rate in the municipality or changing demographics;

•

In determining the amount of loan borrowings, Council will also consider any financial

effects placed upon future generations

•

Generate financial return to meet repayments.

5.2.2 Current Debt Position

The total amount borrowed as at 30 June 2021 is $89.96 million.

5.2.3 Future Borrowing Requirements

The following table provides details of debt over the life of the FP.

Year

Refinancing /

New

$’000

Principal Paid

$’000

Interest Paid

$’000 Balance 30 June

$’000

21/22

10,000

9,497

2,384

90,464

22/23

7,000

10,303

2,313

87,162

23/24

6,000

9,088

2,240

84,074

24/25

14,000

10,462

2,401

87,612

Year

Refinancing /

New

$’000

Principal Paid

$’000

Interest Paid

$’000 Balance 30 June

$’000

25/26

12,000

32,155

2,324

67,457

26/27

13,000

13,631

1,705

66,826

27/28

8,500

14,180

1,618

61,146

28/29

13,000

15,544

1,634

58,602

29/30

8,000

15,823

1,290

50,779

30/31

2,500

11,843

976

41,436

Future borrowings can be considered to fund the increasing capital works program of which the cost

would be borne across current and future generations.

The following ratios are to be used in determining the amount of borrowings.

Ratio

Indicator

Threshold

Debt servicing ratio

Debt servicing cost to total revenue

Debt commitment ratio

Debt servicing cost and redemption cost to rate revenue

10%

Debt exposure ratio

Total indebtedness to total realisable assets

40%

Indebtedness ratio

Net operating cash flows to underlying revenue (Council is not overly

reliant on debt to fund capital programs)

40%

Debt servicing ratio

Debt servicing cost/total revenue

This ratio expresses the amount of interest paid as a percentage of Council’s total revenue.

Debt commitment ratio

Debt servicing cost and redemption cost/rate revenue

This ratio expresses the percentage of rate revenue utilised to pay interest and redeem debt

principal.

Debt exposure ratio

Total indebtedness/total realisable assets

This ratio enables assessment of Council’s solvency and exposure to debt. The total indebtedness

refers to the total liabilities of Council. Total liabilities are compared to total realisable assets which

are all Council assets not subject to any restriction and are able to be realised. The ratio expresses

the percentage of total liabilities for each dollar of realisable assets.

Indebtedness ratio

Non-current liabilities/underlying revenue

This ratio provides comparison of non-current liabilities (mainly loans) to own source revenue. The

higher the percentage, the less able to cover non-current liabilities from the revenues Council

generates itself.

Refer to Section 4 for details of the loan borrowing financial indicators.

5.3 R

ESERVES

TRATEGY

5.3.1 Current Reserves

5.3.1.1 Public Open Space Fund Reserve

This reserve services funds from developer contributions collected through Council’s planning

scheme. The funds held in the reserve will be utilised through infrastructure works for the identified

purpose.

5.3.1.2 Developer Contributions Plan – Brimbank and Sunshine Reserve

This reserve is set up to cater for contributions from developers within the municipality.

5.3.1.3 Asset Revaluation

Council measures certain assets and liabilities at fair value where required or permitted by

Australian Accounting Standards, AASB 13 Fair Value Measurement. Where assets are revalued, the

revaluation increments are credited directly to the Asset Revaluation Reserve except to the extent

that an increment reverses a prior year decrement for that class of asset that had been recognised

as an expense.

5.3.1.4 Loan Repayment

At the Ordinary Council Meeting on 27 May 2014, Council resolved to participate in the Municipal

Association of Victoria Debt Procurement Project for interest only debt. In order to repay the

principal at maturity date Council has established a loan repayment reserve for interest only debt.

There will be allocations of set amounts of funds each year to this reserve.

5.3.1.5 Major Capital Works Projects

This reserve has been opened to provide a source of funding for major capital works projects.

5.3.2 Reserve Usage Projections

The following table outlines the 10 year projection of each reserve fund.

20/21

21/22

22/23

23/24

24/25

25/26

26/27

27/28

28/29

29/30

30/31

$’000

Public Open Space

Opening balance

2,093

2,126

2,165

2,204

2,244

2,285

2,326

2,369

2,412

Transfer to reserve

1,890

1,923

1,962

2,001

2,041

2,082

2,123

2,166

2,209

2,253

Transfer from reserve

(1,890)

(1,923)

(1,962)

(2,001)

(2,041)

(2,082)

(2,123)

(2,166)

(2,209)

Closing balance

2,093

2,126

2,165

2,204

2,244

2,285

2,326

2,369

2,412

2,456

Development Contributions

Opening balance

1,690

2,070

1,750

1,765

1,782

1,800

1,818

1,837

1,856

1,875

1,895

Transfer to reserve

1,180

860

875

893

910

929

947

966

985

1,005

1,025

Transfer from reserve

(800)

(1,180)

(860)

(875)

(893)

(910)

(929)

(947)

(966)

(985)

(1,005)

Closing balance

2,070

1,750

1,765

1,782

1,800

1,818

1,837

1,856

1,875

1,895

1,915

Restricted Reserves Summary

pening balance

3,783

4,163

3,843

3,891

3,947

4,004

4,062

4,122

4,182

4,244

4,307

Transfer to reserve

3,070

2,750

2,798

2,854

2,911

2,969

3,029

3,089

3,151

3,214

3,278

Transfer from reserve

(2,690)

(3,070)

(2,750)

(2,798)

(2,854)

(2,911)

(2,969)

(3,029)

(3,089)

(3,151)

(3,214)

Closing balance restricted

4,163

3,843

3,891

3,947

4,004

4,062

4,122

4,182

4,244

4,307

4,371

20/21

21/22

22/23

23/24

24/25

25/26

26/27

27/28

28/29

29/30

30/31

$000's

Discretionary

Asset Revaluation

Opening balance

1,295,908

Transfer to reserve

Transfer from reserve

Closing balance

1,295,908

Loan Repayment

pening balance

5,600

8,500

9,800

11,100

12,400

13,700

Transfer to reserve

2,900

1,300

Transfer from reserve

(15,000)

Closing balance

8,500

9,800

11,100

12,400

13,700

Major Capital Works Project

Opening balance

8,547

9,547

4,774

Transfer to reserve

1,000

Transfer from reserve

(4,774)

Closing balance

9,547

4,774

Discretionary Reserves Summary

Opening balance

1,310,055

1,313,955

1,310,482

1,307,008

1,308,308

1,309,608

1,295,908

Transfer to reserve

3,900

1,300

Transfer from reserve

(4,774)

(15,000)

Closing balance discretionary

1,313,955

1,310,482

1,307,008

1,308,308

1,309,608

1,295,908

Reserves Summary

pening balance

1,313,838

1,318,118

1,314,324

1,310,899

1,312,255

1,313,612

1,299,970

1,300,030

1,300,090

1,300,152

1,300,215

Transfer to reserve

6,970

4,050

4,098

4,154

4,211

4,269

3,029

3,089

3,151

3,214

3,278

Transfer from reserve

(2,690)

(7,844)

(7,524)

(2,798)

(2,854)

(17,911)

(2,969)

(3,029)

(3,089)

(3,151)

(3,214)

Closing balance reserves

1,318,118

1,314,324

1,310,899

1,312,255

1,313,612

1,299,970

1,300,030

1,300,090

1,300,152

1,300,215

1,300,279

Restricted Reserves

scretionary Reserves

5.4 A

SSET

ANAGEMENT

Management of Council’s infrastructure assets is an essential component of Council’s FP as it

provides an indicator of the necessary financial commitment required to adequately sustain

Council’s asset base to an agreed standard over the long term.

This level of investment goes towards the day to day maintenance and operations of the assets as

well as large scale capital investments such as building new assets and replacing old ones.

5.4.1 Infrastructure Assets

Council has an estimated net book value of $2.3 billion of infrastructure assets which have built up

progressively over the last 50-60 years. Some of these assets are approaching the end of their

useful life and will need considerable capital investment to ensure their continued service.

The following table provides details of Council’s infrastructure assets and their net book values as

at 30 June 2020.

Asset Category

Current Net Book Value

$’000

Percentage of Total Value

Buildings

181,667

7.66%

Land

731,844

30.87%

Bridges and culverts

22,437

0.95%

Drains

257,515

10.86%

Footpaths & Cycle ways

123,023

5.19%

Roads

926,138

39.06%

Sport facilities

51,070

2.15%

Park Open Space/Playground equipment

51,320

2.16%

Computers and Telecoms

647

0.03%

Plant, machinery and equipment

14,804

0.62%

Artworks

1001

0.04%

Furniture & fittings

2,042

0.09%

Heritage assets

242

0.01%

Library

3,222

0.14%

Leased assets

4,111

0.17%

Total

2,371,083

100.00%

The specific details of these major asset categories are:

Description

Details

Inventory

Buildings

Complete inventory listing of Council owned buildings, including community centres,

childcare centres, municipal offices, libraries, leisure centres, pavilions, public toilets,

sheds, gazebos and animal pounds.

414 units

Council owned

land

Complete inventory listing in hectares of council owned land including access ways,

vacant land, parks and reserves.

2,411 ha

Bridges and

culverts

Complete inventory listing of Council owned bridges and major culverts. Some of these

assets may have a shared responsibility with other relevant authorities.

54 units

Drainage pipes

Complete inventory listing in kilometers of Council owned drainage pipes.

1,229 km

Drainage pits

Compete inventory listing in units of Council owned drainage pits including all GPT’s and

litter baskets.

43,430 units

Footpaths

Complete inventory listing in kilometres of Council owned footpath assets.

1,551 km

Description

Details

Inventory

Roads

Complete inventory listing in kilometers of Council owned road pavement including all

surface pavement types, sealed and unsealed roads.

907 km

5.4.2 Renewal Gap

Over the life of the FP, Council is responsible for community infrastructure replacement which is

valued at approximately $2 billion. Funding to adequately maintain and renew ageing infrastructure

is estimated to have an annual shortfall of $8.5 million. Details are as follows:

Asset Group

Infrastructure Gap

(estimated average)

$’000

Roads, Kerb & Channel and Footpaths

$185

Facilities

$2,000

Open Space

$2,050

Drainage

$4,300

Asset renewal gap (renewal gap) is the estimated funding shortfall in meeting the need to renew

assets over time. This gap exists due to Council’s inability to fund asset replacement when assets

reach the end of their service life.

Preliminary details of the renewal gap are as follows, including upgrades but excluding carried

forward works from previous periods:

5.5 S

ERVICE

ROVISION AND

LANNING

Council’s budgets over the last few years reflected a strong focus on improving the amenity,

liveability, social connectedness and governance of the municipality, both practical and strategic.

Past budgets have invested significantly in accelerating these outcomes and have successfully

established all services on the ground.

Council has also made significant advances in the planning and delivery of district based community

facilities, creating a network of public infrastructure, community facilities and services that deliver

on the district based approach.

5.5.1 Operating Expenditure/Revenue

The 2021/22 budgeted operating expenses and revenue budget are $217.7 million and $235.6

million respectively. Council’s provision of services includes:

•

Children, youth and family services;

•

Leisure, cultural and community strengthening;

•

Library services;

•

Roads, footpaths, drains and building maintenance;

•

Parks and open space;

•

Waste and recycling;

•

Environmental health and immunisation;

•

Planning and building services;

•

Community regulations; and

•

Ageing and inclusion.

5.6 G

ROWTH OF

OUNCIL

5.6.1 Population

The population forecasts indicate that the population will increase over the next 10 years. The

salient statistics are:

•

The population of Brimbank will be 211,938 in 2021;

•

It will increase by 7,040 to 218,978 by 2026; and

•

It will increase by a further 4,613 to 223,591 by 2031.

The total population increase for the period 2021 to 2031 is expected to be 11,653.

Figures 1 and 2 below show the changes in the service age groups every five years. The major

hanges are:

•

An increase in the number of residents in the 5 to 14 years age group between 2016 to

2026 of 2,332.

•

An increase in the number of residents in the 35 to 49 years age group between 2016 to

2026 of 1,980 and in 2026 to 2041 of 2,046.

•

An increase in the number of residents in the 70 to 84 years age group between 2016 to

2026 of 6,291 and in 2026 to 2041 of 2,944.

Figure 1. Number of residents in each age group at 2016, 2026 and 2041.

Figure 2. Change on number of residents in each service age group every five years.

(Data exported from the .id Consulting website http://forecast.id.com.au/brimbank on 4 March 2021).

0-4 5-14 15-19 20-24 25-34 35-49 50-59 60-69 70-84 85+

2016 14,066 24,024 12,911 16,747 34,308 40,806 24,881 20,359 14,681 2,958

2026 14,447 26,356 13,708 16,724 34,938 42,786 24,057 21,025 20,972 3,967

2041 14,882 27,092 14,474 17,625 36,050 44,832 25,148 20,225 23,916 5,941

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

0-4 5-14 15-19 20-24 25-34 35-49 50-59 60-69 70-84 85+

Change 2016-2026

381 2,332 797 -23 630 1,980 -824 666 6,291 1,009

Change 2026-2041

435 736 766 901 1,112 2,046 1,091 -800 2,944 1,974

-500 500

1,500

2,500

3,500

4,500

5,500

6,500

7,500

5.6.2 Private Dwellings

The below outlines the forecasted increase in private dwellings from 2021 to 2031.

Year

Structural

private

dwellings at

end of year

2021

73,519

2026

77,056

2031

79,692

(Data exported from the .id Consulting website http://forecast.id.com.au/brimbank on 4 March 2021).

Based on the forecast population growth being relatively stable and changing demographics, it is

assumed that the range of service delivery will change over the life of the FP and will operate within

Council’s current operating expenditure. Overall, the growth will be serviced in line with Council’s

continuous improvement, innovation and efficiency. The service level will be reviewed annually

through the annual budget process.

Population changes and household formation rates in Brimbank may change, particularly due to

external factors including migration rates and economic conditions. The take-up of new forms of

higher density housing may also increase over the period of the FP. The population forecasts

applied as part of the FP will be regularly reviewed, along with building construction data and other

measures of population change.

The process of urban renewal in Brimbank will see a progressive changeover of some former

industrial land to residential, commercial or mixed-uses. Following environmental investigations

and the rezoning process, the redevelopment of these ‘brownfield’ sites will result in a change of

land uses and the subdivision of land. Areas in Deer Park, St Albans and Sunshine are likely to be

the focus for this change.

5.6.3 COVID-19

The COVID-19 pandemic is the most serious and pressing public health, social and economic issue

facing the local community.

The following Brimbank COVID-19 population growth impact assessment from Forecast.id

(https://forecast.id.com.au/brimbank/forecast-covid19-impact 5/3/21) is based on analysing a

range of variables at a local level that include:

•

Migration – who will move into an area as well as who is leaving the area

•

Natural increase – impacts on the forecast numbers of deaths or births

•

Economic resilience – availability of jobs

•

Resident vulnerability – unmet social and economic needs

•

Local amenity – factors that make an area a more enjoyable place to live.

rimbank already experiences a number of social-economic issues across the community and is

particularly vulnerable to both the health and economic effects of an ongoing and prolonged

COVID-19 crises.

5.6.3.1 Migration

Net migration explains who will move into an area as well as who is leaving the area. It is therefore

an excellent way of understanding housing markets and how the role and function of an area may

be affected by COVID-19. Changes to migration may disproportionately affect industries such as

the education sector due to their reliance on overseas migration.

Description

City of

Brimbank

Greater

Melbourne

Potential impact

Overseas migration

Share of residents born overseas

47.8%

33.8%

Negative impact

Overseas migration share of total net migration (2011 to

2016)

957.0% 95.7%

Negative impact

Interstate migration

Interstate migration share of total net migration (2011 to

2016)

3.8%

9.7%

Negligible impact

Intrastate migration

Intrastate migration share of total net migration (2011 to

2016)

-860.8% -5.4%

Negative impact

International student impacts

Residents attending university

5.3%

6.4%

Some negative impact

Residents attending TAFE

1.9%

1.8%

Negligible impact

5.6.3.2 Natural Increase

The size of the population increases through births and decline through deaths. The number of

forecast births is an indication of the exposure the community has to changes to the fertility rate.

The share of residents aged 70+ years provides an indication of the exposure the community has

to changes to the mortality rate due to COVID-19.

Description

City of

Brimbank

Greater

Melbourne

Potential impact

Natural increase

Natural increase share of forecast population growth (2020

to 2024)

145.0% 65.6%

Negligible impact

Mortality

Share of residents aged 70+ years (2020)

9.7%

9.8%

Some exposure

5.6.3.3 Economic Vulnerability

Economic vulnerability is an indicator of the degree to which COVID-19 may negatively impact the

employment prospects of local residents. Communities with high gross regional product decline

and/or high levels of local jobs declining are more likely to experience lower levels of population

growth. Additionally, economies with scale and diversification may be more likely to retain, and/or

attract residents relative to other areas.

Description

City of

Brimbank

Greater

Melbourne

Potential impact

Economic output

Gross regional product change

-14.0% -13.3%

Some negative impact

Local job impacts

Local job change

-4.1%

-8.9%

Some negative impact

Local job change (including JobKeeper recipients)

-12.8% -14.7%

Some negative impact

Employed resident impacts

Employed resident change

-10.3%

-8.9%

Negative impact

Employed resident change (including JobKeeper recipients) -17.4% -14.8%

Negative impact

Share of residents who work in LGA

27.2%

Note: Impacts refer to September Quarter 2020 compared to September Quarter 2019

5.6.3.4 Resident Vulnerability

This indicator identifies communities with a high proportion of residents who have unmet social and

economic needs (housing, income, education etc.) Due to COVID-19, these communities,

particularly those with a younger, more mobile population, are expected to experience a greater

change in how or where residents live (i.e. younger residents moving back home with their parents,

formation of group households to share costs or leaving the area in search of employment

opportunities elsewhere).

Description

City of

Brimbank

Greater

Melbourne

Potential impact

Socioeconomic vulnerability

SEIFA Rank (Disadvantage)

921

1,021

Negative impact

Disengaged youth of 15-24 year olds

10.3%

7.5%

Some negative impact

Share of low income households

19.8%

16.7%

Some negative impact

Housing vulnerability

Description

City of

Brimbank

Greater

Melbourne

Potential impact

Share of households under housing stress

13.6%

11.7%

Some negative impact

Mortgage vulnerability

Share of households owned with mortgage

32.6%

34.3%

Some exposure

Share of households under mortgage stress

17.5%

11.2%

Negative impact

Rental vulnerability

Share of households privately rented

22.1%

25.8%

Some exposure

Share of households under rental stress

31.6%

27.4%

Some negative impact

Residential mobility

Share population of 18-39 year olds

33.5%

33.6%

Some exposure

5.6.3.5 Local Amenity

Local amenity considers the amenity a region provides its residents, with a particular focus on

access to affordable housing and access to lifestyle opportunities. It is an indicator of the livability

of an area, in the context of COVID-19.

Description

City of

Brimbank

Greater

Melbourne

Potential impact

Housing Affordability

Housing Median Value

$660,000 $812,000

Some positive impact

Unit Median Value

$439,000 $552,000

Positive impact

Brimbank City Council

Telephone

9249 4000

Email

info@brimbank.vic.gov.au

Post

PO Box 70, Sunshine, VIC 3020

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133 677

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•

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