The city's draft financial plan for 2021 to 2031 says continued caps on rate raises will limit revenue available to fund new projects and initiatives.

It also warns that the effects of climate change will make it more expensive for the city to deliver services and infrastructure.

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Damage to property, rising insurance costs, and demand for emergency management are all named as likely factors in these rising costs.

The plan states the city's revenue is expected to rise from $223 million to $269 million over the coming 10 years, while its population also grows.

Greater Bendigo's population is forecast to hit more than 155,000 people by 2036, a 30,000 plus jump from its current residency of about 123,000.

This is likely to provide some extra rate revenue, but will also mean additional investment in assets and services, the plan states.

A changing population is also likely to challenge how the city delivers its future services, the plan states.

In particular a growing number of residents over 70 is named as a challenge.

The plan identifies challenges to the city's economy such as shortages of skilled workers in some occupations, relatively high youth unemployment and sourcing future industrial land.

Climate change is also named as a factor in the city's draft financial plan.

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It states that the changing climate would make it more expensive for the city to build and maintain infrastructure, and deliver its services.

It cited an average temperature increase of more than one degree in Victoria since 1910, a decrease in average rainfall and increased spring fire danger, among the effects already evident.

Damage to property and infrastructure, rising insurance costs, increased energy and water costs, demand for additional services and emergency management, were all named among likely causes of rising costs.

The plan also identified costs from some loss of vegetation, birds and wildlife, and the effects on economic development in areas such as tourism, events and recreation.

The draft financial plan was one of several councillors voted to release for public comment in a meeting on Monday night.

The draft Financial Plan 2021-2031 is available for public comment online.

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