Summary for Banyule’s 10 Year Financial Plan

The Local Government Act 2020 Section 91 requires Council to adopt a financial plan. The Draft Plan aims to show the financial sustainability of Banyule City Council over the next 10 years.

The Financial Plan provides a 10 year financially sustainable projection. It covers how the actions of the Council Plan may be funded to achieve the Community Vision.

The Financial Plan is developed in the context of the following strategic planning principles:

  • Council has an integrated approach to planning, monitoring and performance reporting.
  • The Financial Plan statements articulate the 10-year financial resources necessary to implement the Council Plan to achieve the Community Vision.
  • Council's strategic planning principles identify and address the risks to effective implementation of the Financial Plan.
  • The Financial Plan allows for progress monitoring and reviews to identify and adapt to changing circumstances.

The influences that have guided this Plan and continue to guide the organisation in planning for a sustainable future include:

  • Major projects and project management
  • Environmental sustainability
  • Advocacy / engagement
  • Urban development and transport
  • Governance and reform
  • Employment pathways and social enterprise

Council’s strategic actions for long term financial sustainability include:

  • Generate enough cash to fund capital works and meet the asset renewal requirements as outlined by the financial sustainability ratios.
  • Encourage more operational innovation and control expenditure at levels that can consistently support the funding requirements of the capital works program and provision of quality services.
  • Support the growth of non-rate revenue to achieve greater diversification of the current revenue base and provide flexibility to better manage rate revenue increases within the rate cap.
  • Balance meeting the ongoing core service needs of our community, expectations and quality of delivery with the ongoing achievement of long-term financial sustainability.
  • Delivery of a revenue and rating plan based on stability, equity, efficiency and transparency.
  • Delivery of a debt management strategic plan to ensure decisions and opportunities can be accommodated within a context of responsible, sustainable financial management.

The assumptions used for income and expenditure, are based on known information at a point in time, and include:

  • The average annual rate increase matches the projected rate cap.
  • The annual increase of Grants, User Fees & Charges, Statutory Fees & Charges, Contribution income, Rental Income and Other Income match projected CPI.
  • Interest income is based on predicted cash flows, cash balance and investment returns (predicted to remain low).
  • The assumption for Council’s Employee Benefit expenditure is based on 25 basis points less than Rate Cap, and an additional 0.50% has been included each year for natural banding level increments.
  • The super guarantee rate will increase to 10.00% from 1 July 2021, and then increase by 0.50% increments each year until it reaches 12.00% by 1 July 2025.
  • A superannuation call has not been factored into this plan.
  • Other expenses are assumed at 25 basis points less than CPI.
  • Utility charges increase more than CPI, but there is an assumed reduction on usage.


Council's income in generated through a range of sources:

  • Rates and Charges
    Base rate revenue will increase by 1.5% for the 2021/22 year, based on the state government rate cap (set at CPI). Estimated future annual increases to not exceed CPI. (read more about rates on page 15, 19, or review our Revenue and Rating Plan on page 40).
  • Grants – Capital and Operating Grants
    Financial Assistance Grants are the largest source of recurrent government funding to Council (through the annual Victorian Grants Commission allocation). Capital grants are one-off funding allocations.
  • Fees and Charges
    Fees and Charges fall into two broad categories; statutory fees and fines and user fees. Council aim to increase the total revenue generated from user fees by at least equal to CPI. (read more on page 15).
  • Contributions
    Monies paid by property developers towards public open space and developer contribution plan monies paid by local sporting clubs/organisations to contribute towards capital works projects and contributions to other operational programs.
  • Other income
    Revenue from other income mainly comprises investment income and rental income received from the hire of Council owned properties.


Council spending is made up of a variety of categories:

  • Capital works
    In the past few years, Council has made significant commitments to deliver a range of major infrastructure assets. (Read more on page 26).
  • Employee Costs
    Council is committed to boosting diversity in our staff recruitment and engagement practices. The first Workforce Plan for Council will be developed by 31 December 2021. (Read more on page 17).
  • Materials and Services
    Material costs include items required for the maintenance and repairs of Council buildings, roads, drains and footpaths which are more governed by market forces based on availability than CPI. Waste disposal is included in this category.
  • Depreciation and Amortisation
    Depreciation has been further increased by the indexing of the replacement cost of Council’s fixed assets.
  • Borrowing Costs. (Read more on page 34).