Purpose

The operational plan expands the corporate plan into more detailed action plans, ensuring that the corporate structure, available resources and realistic timeframes are taken into account.

The operational plan has a twelve month focus and details the activities and projects that council will undertake during the next financial year to achieve the broader strategic direction and outcomes identified in the corporate plan.

It is essential at this stage that the operational plan has direct links to revenue policy and the budget, taking into account long-term financial planning and 10 year forecasts.

At the end of this stage (which typically occurs during February to June) council will have met the requirements of the LGA, Section 508 (2) that the operational plan must be prepared and adopted in enough time to allow the preparation of an annual budget that is consistent with it.

Key questions

Checklist 32 - Develop the operational plan

• Are managers and staff aware of council’s adopted strategic direction when they prepare their first draft budget?
• Does the draft budget reflect council’s adopted strategic direction?
• Does the corporate planning process have any real influence on what managers include in their annual program?
• What are the potential resourcing implications of the draft plan?
• Will council be able to afford to implement all strategies?

Process overview

The focus at this stage of the annual planning cycle is on actual preparation and adoption of an operational plan for the coming financial year in conjunction with budgets consistent with that plan. Under the LGA, each council must adopt a budget for the coming financial year between 1 June and 31 August.

In practice, preparation of a council’s operational plans, revenue policy, budgets, revenue statements and 10 year forecasts is not a linear process and typically involves sets of activities conducted in parallel. For ease of explanation, and to provide reference points in the planning process, the key steps are shown below:

Step 1: Review legislative requirements

• Align the operational plan and budgets
• Apply standard terminology
• Review budget compliance

Step 2: Prepare policies and budget

• Confirm the budget framework and methodology
• Prepare a budget checklist
• Review service levels and performance targets
• Review revenue policy
• Prepare 10 year cash flow forecast
• Prepare the revenue statement

Step 3: Draft the operational plan

• Confirm links to the corporate plan
• Establish the operational plan format and content
• Meet targets and milestones

Step 4: Adopt the budget and operational plan

• Present documents to council’s budget meeting

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