Love Where You Live
We strive to protect and enhance our region as it is a unique place underpinned by rich heritage and an enviable river lifestyle. We are proud to share and nurture this natural beauty, welcome visitors and drive growth and investment to sustain our vibrant community long into the future. We lead healthy, active and fulfilling lives, with a commitment to support and respect each other and our environment. Together, we're building a brighter future.
Renmark Paringa Council acknowledges the First Peoples of the Murray and Mallee region as the traditional custodians of the Renmark Paringa area, and acknowledges their cultural and spiritual connection to land, water and community. We pay our respects to Elders past and present.
DRAFT
The Long Term Financial Plan (LTFP) serves as a strategic guide for the Renmark Paringa Council, outlining its financial direction over the next ten years. It provides a high-level framework to support informed decisionmaking and reinforces Council’s commitment to long-term financial sustainability.
This plan offers a broad overview of the Council’s financial structure and is designed to be a dynamic document—reviewed and updated annually to reflect changes in the external environment and emerging priorities.
The LTFP document makes projections about the funding required for the delivery of Councils Strategic Management Plans (SMPs). The LTFP assists Council to assess
Your Voice
Community feedback on this Draft Long Term Financial Plan (LTFP) will help shape the direction of Council’s services, facilities and programs over the next 10 years.
Welcome DRAFT
At Renmark Paringa Council, we are committed to balancing financial sustainability with delivering services that reflect the needs and aspirations of our community. This Draft Long Term Financial Plan outlines our investment in strategic priorities, essential infrastructure and services, while maintaining a responsible and sustainable financial position.
Your voice is important. This draft plan has been shaped by the views and priorities you shared through the latest Community
the impact of their proposed plans on the future financial sustainability of the council and the potential impact on ratepayers.
Covering the period from 2026 to 2035, the LTFP focuses on the following key objectives:
l Investing approximately $70 million in community assets.
l Maintaining Council’s status as a financially sustainable organisation.
l Enabling strategic financial planning that accommodates future initiatives and external influences.
l Demonstrating Council’s efficiency and effectiveness in service delivery.
Satisfaction Survey and during the development of the Renmark Paringa Community Plan. It reflects what matters most to you and sets a clear direction for the year ahead.
We now invite you to review the Draft Plan and tell us what you think. Your feedback will help us refine and finalise the plan to ensure it meets the needs of our community.
Have your say at engagement. renmarkparinga.sa.gov.au or in writing to PO Box 730, Renmark, SA, 5341.
By getting involved, you can stay informed, contribute your ideas, and help shape the future of our region.
Have Your Say By Clicking Here
By 16th July 2025
Strategic Framework
Our Strategic Management Framework demonstrates how our plans deliver on your vision.
Our Long Term Financial Plan forms a key part of Renmark Paringa Council’s Strategic Management Framework.
This framework ensures that all of Council’s activities are guided by the long-term vision outlined in our Community Plan. The Community Plan sets the strategic direction for
our community over a 10-year horizon, defining the key goals and objectives we are committed to achieving in partnership with you.
Supporting this strategic direction are our Infrastrucutre and Asset Management Plan (IAMP) and Long Term Financial Plan, which outline how we will responsibly
Community Plan Where are we going?
allocate resources to deliver on our priorities.
Ongoing performance monitoring through a community satisfaction survey every three years and transparent reporting are built into our approach, ensuring we stay on track, measure progress, and remain accountable to you.
What do we want to achieve?
Long Term Financial Plan
Infrastructure & Asset Management Plan
Annual Business Plan and Budget
What are the activities and outcomes to be achieved this year? How will we allocate the resources?
CEO's Financial Sustainability Statement
Financial sustainability is defined as the Council’s capacity to manage its financial resources in a way that enables it to meet both current and future service and infrastructure obligations, without compromising its financial position or placing an undue burden on future generations.
Council is committed to making financial decisions today that safeguard the wellbeing of future generations. Through prudent, financial management,
strategic planning, and responsible asset stewardship, Council will continue to deliver essential services while preserving the long-term value of community resources.
Financial sustainability is at the heart of Council’s LongTerm Financial Plan (LTFP). It ensures that Council can continue to meet the needs of its residents—now and into the future—while maintaining Renmark Paringa Council as an attractive place to live, work, and visit.
Sustainability Focus Of The Long Term Financial Plan
1. RETURNING TO SUSTAINABLE BALANCED BUDGETS
Council’s revised LTFP projects a return to an adjusted operating surplus from Year 4 of the planning period. This reflects a deliberate strategy to ensure that operating revenues are sufficient to cover operating expenses, including depreciation. By reducing reliance on debt to fund asset maintenance and renewal, Council is actively minimising the financial burden on future ratepayers.
2. COST CONTROL AND EFFICIENCY
Council is committed to delivering value for money through disciplined expenditure management and continuous improvement. In the upcoming financial year, materials and contracts budgets have been reduced by 6% (from original 2024/25 budgets), with further cost-saving initiatives planned over the next 12 months. These measures are designed to reduce financial pressure on residents while maintaining service quality. Cost savings initiatives have been outlined in Council’s 2025/2026 Annual Business Plan.
3. PRUDENT ASSET MANAGEMENT
Council has completed comprehensive condition assessments across most asset classes. These assessments have been integrated into the Council’s Integrated Asset Management Plan, ensuring that asset renewal and maintenance decisions are evidence-based and strategically aligned. This approach supports the long-term sustainability of community infrastructure and ensures assets remain fit for purpose for future generations.
Where an asset is deemed to not be providing a benefit to the community, it’s use and ownership will be reviewed by Council.
Council’s financial strategy is underpinned by a commitment to long-term sustainability, transparency, and responsible governance. Through the implementation of this Long-Term Financial Plan, Council will continue to deliver essential services, invest in critical infrastructure, and maintain financial resilience—ensuring that the community’s needs are met both now and into the future.
Significant Influences
Continued recovery from the 2022-23 Floods – The ongoing recovery from the 2022-23 floods continue to place financial pressure on Council and residents. Prior to the floods Council was operating from a cash surplus position however post floods has become reliant on debt funding due to the need to deliver large asset renewals such as the Twentyfirst Street Bridge reconstruction and the Renmark Wharf. Council also continues to partner with local residents and businesses to aid in flood recovery efforts.
Wine grape industry downturn - A prolonged downturn in the wine grape industry will likely reduce local economic activity. Council will continue to advocate for financial assistance from the state and federal governments to aid this sector.
Drought - Persistent drought conditions will strain water resources and agricultural productivity, possibly impacting the financial stability of local businesses and in-creasing the council's costs for water management and community support.
Increased cost of living - Rising cost of living pressures will directly impact our community's ability to pay rates and fees, requiring the council to consider rate affordability while managing increasing operational costs.
State and Federal government cost shifting - The ongoing trend of State and Federal governments transferring service delivery responsibilities to local councils contin-ues to impose significant unfunded cost burdens on Council. This places pressure on our budget and challenges our ability to maintain service levels. Strategic advocacy and prudent financial management will be essential to address this. Council will continue to advocate for a fairer distribution of Financial Assistance Grants within South Australia.
Significant asset valuation increases – Driven by inflation and rising material costs over the past three years, Council has seen a substantial increase in asset valuations. This, in turn, will lead to higher depreciation expenses, negatively impacting Council’s operating result. These changes highlight the need to review asset management strategies to ensure adequate funding is allocated for asset renewal and long-term financial sustainability.
Significant cost increases in materials, electricity and insurances – Council is not immune from the cost-of-living pressures being felt around the globe. Escalating costs for essential materials, electricity, and insurances will directly inflate Council’s operational expenses, putting pressure on the budget and requiring diligent procurement practices and potential service adjustments.
DRAFT
Council moving towards a cost recovery approach to service delivery – Council has undertaken a strategic shift towards a cost recovery model for service delivery that aims to ensure that the direct beneficiaries of services contribute more equitably to their provision, reducing reliance on general rates.
Geopolitical and global economic uncertainty
– Ongoing international instability, supply chain disruptions, and global economic volatility continue to influence local financial conditions. These external factors may lead to increased inflationary pressures, higher interest rates, and fluctuating material costs, all of which pose challenges to long-term financial planning and the delivery of Council’s capital works and service programs.
Advice received from Essential Services Commission of South Australia (ESCOSA) – Council has reviewed the information received from ESCOSA and adapted its strategic management plans to reflect the recommendations received. Formal responses to the recommendations can be found in Council’s An-nual Business Plan.
Key Assumptions
The preparation of the Long Term Financial Plan has been determined based upon the following key assumptions:
l No change to service levels within Council’s general operations.
l Allowance for renewal of all existing assets in line with the Infrastructure Asset Management Plan
l Future year project expenditure and income amounts are indicative only and subject to future Council endorsement.
GENERAL ASSUMPTIONS
l No increase in staffing levels over the life of the plan
l Wage increases from year two to be in line with mid-range CPI target expectations of 2.5%
l No change to superannuation after next financial year.
l Cash Advance Debenture (CAD) Account Borrowing Rate of 5.75% for next financial year, reducing to 5.25% in 26-27 and then 5% ongoing thereafter
l Investment revenue rate of 4% next FY, reducing to 3.5% in 26-27 ongoing
l Depreciation growth in line with asset valuations and additions of 4.9% per year.
l Minimum of $300,000 held in cash at call
l All operational costs increase by mid-range CPI target expectations of 2.5% per year.
l Increase to insurance costs of around 5% per year for the next three financial years.
RATING INCOME
l General Rating increases in line with cash flow needs to sustain current service delivery levels, and a return to surplus within the next four financial years.
l CWMS rating increases in line with the Council 20 Year Pricing Model
l Large initial Waste Charge increase in year one to achieve full cost recovery then incremental increases in line with CPI thereafter.
GRANT ASSUMPTIONS
l Financial Assistance Grant prepayments continue at current rates of indexation
l Roads to recovery grants continue for the term of the plan and are increased by CPI in the outer years upon completion of the current stream of funding.
Long Term Financial Plan Summary
Council’s Long Term Financial Plan (LTFP) outlines a financially sustainable path forward, with a focus on improving operating performance, maintaining service levels, and investing in infrastructure. Over the 10-year period, Council transitions from an operating deficit to consistent surpluses, supported by growing revenues and controlled expenditure. Cash reserves are projected to increase, and the asset base continues to grow through timely renewal of assets.
OPERATING INCOME
Operating income is projected to grow from approximately $21.4 million in 2025/26 to $27.7 million by the end of the forecast period. This growth is driven by steady increases in rates, user charges, and operating grants. The income mix remains heavily reliant on rating income with rates making up 70% of operating income. Over the 10 year plan operating income is projected to grow by 2.9% per year.
RATES
Rates are the Council’s most reliable and significant revenue source. They are forecast to increase annually from $15 million in year one to over $20.5 million by the end of the projection period. These increases reflect both growth in the rate base and annual indexation. The consistent rise in rates revenue underpins the Council’s ability to fund core services and infrastructure renewal. Rates are projected to grow by 3.5% over the ten year plan from 2025/26 to 2034/35.
CHARGES
Charges include statutory charges (e.g., development application fees) and user charges (e.g., facility hire, waste services). Statutory charges remain relatively stable, while user charges show moderate growth, increasing from $965,000 to over $1.2 million. This reflects both population
growth and incremental fee adjustments. Charges are projected to grow by 2.5% over the ten year plan in line with Councils expectations for CPI.
GRANTS
Grants are a vital funding source, particularly for community services and infrastructure maintenance. Operating grants made up mainly of Financial Assistance Grants to Local Government and the Federally funded Roads to Recovery, are projected to grow from $3.6 million in 2025-26 to $4.7 million in 2034-35 a net yearly average of 2.8%
OTHER INCOME
Other income includes investment returns, reimbursements, and miscellaneous revenues. While smaller in scale, this category grows over time, particularly investment income which is projected to rise from $27,000 to over $340,000 as cash reserves increase. Reimbursements and other income sources remain stable, contributing to the Council’s financial flexibility.
OPERATING EXPENSES
Operating expenses are projected to grow from $21.5 million to nearly $27.5 million, reflecting inflation, service demand, and asset maintenance needs. This is broken down into the following components: employee costs, materials and contracts, and depreciation. The increase equates to 2.8% per year throughout the 10 year plan. Council maintains a disciplined approach to expenditure, ensuring that growth in expenses is aligned with revenue and service expectations.
EMPLOYEE COSTS
Employee costs increase from $6.8 million to over $8.4 million, driven by wage growth, superannuation growth, enterprise agreements, and maintaining staffing levels to support service delivery. These costs represent a significant portion of the operating budget and are managed through workforce planning and efficiency initiatives. Employee costs currently account for 31% of total budgeted expenditures and are projected to grow by projected CPI (2.5%) over the next 10 years.
DEPRECIATION
Depreciation reflects the consumption of the Council’s asset base and increases from $5.8 million to over $8.75 million over the 10 year plan. This growth is due to asset revaluations and new capital investments. Depreciation is a key indicator of asset sustainability and informs the Council’s capital renewal planning. Depreciation accounts for 30% of Councils expenditure over the next 10 years and is projected to increase by around 4.9% annually.
CAPITAL EXPENDITURE
Capital expenditure is a major focus of LTFP, with significant investment in both renewing existing assets and developing new infrastructure. The plan prioritises asset renewal to maintain service levels and reduce long-term maintenance costs, while also supporting growth and community development through strategic upgrades. $70 million is committed to proposed capital expenditure over the long-term financial plan. Refer to the Infrastructure and Asset Management Plan (IAMP).
DRAFT
MATERIALS, CONTRACTS & OTHER
Materials and contracts have been a major area of focus for Council in an effort to reduce non-essential expenditure without it impacting on service delivery. Year one of the LTFP sees an over 6% reduction in materials and contracts expenditure. Materials and contracts is Councils largest expenditure accounting for 38.5% of total LTFP expenditure.
Following a comprehensive review by the SA Local Government Financial Management Group, and with support from the Australian Centre of Excellence for Local Government, all Australian jurisdictions have agreed in principle to adopt three key financial indicators:
Key Financial Indicators DRAFT
l Operating Surplus Ratio
l Net Financial Liabilities Ratio
l Asset Sustainability Ratio
Renmark Paringa Council has adopted the following indicator targets in line with the LGA’s recommendations.
OPERATING SURPLUS RATIO
This ratio provides a measure of Council’s ability to cover operating expenses and have revenues available for capital funding, repayment of debt or consider the provision of new services.
Operating Surplus Ratio is calculated by Operating Surplus (Deficit) divided by
Rates revenue less Landscape Levy.
Council’s Target over the life of its Long Term Financial Plan is to achieve an average between 0-10%
It is noted that Council’s projected operating surplus ratio is outside of the adopted target range for the initial three years before returning to the target range in year four.
This ratio provides a measure of Council’s ability to meet its long-term financial obligations including debt repayments relative to its revenue.
This ratio is calculated by Total liabilities (less cash and cash equivalents) divided by Total Operating revenue excluding Landscape levy.
Council’s target is for Net Financial Liabilities to be greater than zero and less than 100% of total operating revenue.
Council’s projected position is within the target range for the first five years of its Long-Term Financial Plan however, moves to a negative ratio in the outer years.
A negative percentage result indicates that Council has more cash available than its liabilities. Therefore, a negative result would be a positive financial indicator for Council.
ASSET RENEWAL FUNDING RATIO
This ratio provides a measure of Council’s ability to renew/replace its assets in line with the levels proposed in its adopted Integrated Asset Management Plan.
This ratio is calculated by Expenditure on renewal/ replacement of assets less sales of replaced assets divided by the optimal level of expenditure proposed in Council’s Infrastructure Asset Management Plan.
Council has projected to spend an amount each year roughly equivalent to that determined by the respective infrastructure asset management plans.
DRAFT
Appendix 1 Uniform Presentation Of Finances
Appendix 2
Proposed Years
Appendix 3
Proposed Years
of Change of Equity
Proposed Years
Appendix 5 Statement of Cash Flows
Cash Flows from Investing Activities Receipts:
Contact Details
Telephone 0 8 8580 3000
Email council@renmarkparinga.sa.gov.au
Web renmarkparinga.sa.gov.au
Engage RPC engagement.renmarkparinga.sa.gov.au
Opening Hours
Monday 9am – 5pm
Tuesday 9am – 5pm
Wednesday 9am – 5pm
Thursday 9am – 5pm
Friday 9am – 5pm