Oral Presentation IPWEA International Asset Management Congress 2024

Importance of integrated long-term planning for financial sustainability Myth or Reality - Are our LTFP & SAMP truly sustainable? (108566)

John Devine 1
  1. City of Salisbury, Salisbury, SA, Australia

The City of Salisbury is a growing council in the outer northern suburbs of Adelaide, comprising an area of 160 square km and a population of 150,000.

Salisbury has a strong balance sheet and is in a strong financial position.

Significant rising costs, and for the first time in a number of decades a relatively high inflation rate, has meant that the cost of undertaking construction and maintenance related work can be quite different from unit costs for asset valuations.

A growing City has brought new challenges on how to fund the growth while still delivering desired community services.

Integrated long-term planning is crucial for ensuring sustainability in asset management and financial planning. It is only through asset and finance teams working together, and executive teams making informed strategic decisions, that we can ensure asset related services are affordable in the long term, delivering sustainable services to our communities. Discussions with senior Executive, including CEO and GM Finance, ensure understanding of the trade-offs between Levels of Service, planning for new assets and growth, and financial forecasts within a risk management framework. 

The presentation will show the audience:

  • How to bring finance, ELT, CEO and elected members into sync?
  • How to tell our LTFP story in a meaningful way to make the trade-offs?
  • What does no unfunded backlog mean?
  • How to balance new vs renewing existing
  • How to ensure that future city finances are determined on true build costs vs valuation rates

Defining level of service in a way the community can understand the options.