Introduction

Frankston City Council has prepared the 10-year draft Financial Plan from 2021 to 2031 to support the Community Vision 2040 and the 2021-2025 Council Plan and Budget.

Frankston City Council is committed to accountability and transparency. This page has been prepared to assist readers understand and analyse the Financial Plan.

The new Local Government Act 2020 introduces principles that include priority being given to achieving the best outcomes for the municipal community, including future generations, and that strategic planning must consider the resources needed for effective implementation.

The draft 2021-2031 Financial Plan covers all aspects of our role in the community including the delivery of

  • programs and services
  • building new infrastructure
  • maintenance of roads, footpaths, bike paths, buildings, and parks

This draft 2021-2031 Financial Plan has been prepared after engagement with the community, elected Members and Council staff. The Financial Plan is part of our integrated reporting framework and should be read along with our 2021-2025 Council Plan and Budget, the 2021-2024 Revenue and Rating Plan and the 2021-2031 Long Term Infrastructure Plan.

Our journey in developing the Plan began with deliberative engagement with the community for the Community Vision 2040 and the 2021-2025 Council Plan and Budget throughout 2020 and early 2021, and included the creation of our first-ever Community Panel who deliberated on our financial strategies and actions.

What is included in the Financial Plan?

Our Financial Plan outlines the resources required to deliver the Council Plan and ensure we are investing in assets the community values and needs; our services remain affordable and accessible for the community; and our organisation remains financially sustainable.

It is broken into three main sections:

The Financial Statements prepared by applying the financial strategy to a ten-year financial model to ensure Council meets its Financial Policy targets and performance measures on how Council will perform against key financial indicators with what is planned to be delivered over the ten years

The financial statements include the following:

A 10-year Comprehensive Income Statement that itemises the estimated income to be earned and expenditure to be incurred in delivering our services and activities over the ten years. The comprehensive income statement is prepared on an accrual basis and includes both cash and non-cash items (refer below or to page 22).

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A 10-year Balance Sheet which provides a financial snapshot of Council’s position as at 30 June each year of the Plan (refer below or to page 23).

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A 10-year Statement of Equity which summarises the change in Council’s net financial worth over the 10 years (refer below or to page 24).

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A 10-year Statement of Cash Flows that shows all cash amounts estimated to be received and paid during the ten years (refer below or to page 26).

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A 10-year Statement of Capital Works which details the estimated expenditure to be incurred on creating and renewing the assets in our City by each asset class, the nature of expenditure to be incurred and how the work is to be funded (refer below or to page 27).

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A 10-year Statement of Human Resources that details the planned expenditure to be incurred on our work force in delivering the services to our community (refer below or to page 28).

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We measure our performance against the Local Government Performance Reporting Framework (LGPRF) and the Victorian Auditor General Office (VAGO) assessment of financial sustainability indicators. (refer below or to page 40).