Decoding the inquiry into Local Government funding and services
The Parliamentary Inquiry into Victorian Local Government Funding and Services was released this week and highlights the significant challenges faced by councils, including financial constraints, rising costs, and increasing responsibilities. The report offers clear recommendations to address these issues, providing a roadmap for councils to improve financial sustainability and service delivery.
Key Challenges
- Cost Pressures: Infrastructure renewal, climate resilience, and workforce costs are outpacing revenue growth.
- Revenue Constraints: Rate capping and limited revenue-raising options restrict councils’ financial flexibility.
- Grant Inefficiencies: Competitive, tied funding disadvantages smaller councils with limited resources.
- Asset Renewal: Delayed infrastructure maintenance increases long-term repair costs and risks community safety.
- Workforce Shortages: Regional councils struggle to attract qualified staff, impacting service delivery.
- Ambiguous Responsibilities: Lack of clarity in core council services leads to inefficiencies and resource misallocation.
Key Recommendations
- Simplify Grants: Increase untied funding, streamline applications, and reduce administrative burdens.
- Focus on Asset Management: Prioritise early infrastructure renewal to avoid escalating costs.
- Workforce Solutions: Invest in capacity-building programs and partnerships with TAFEs and universities to attract skilled professionals.
- Review Revenue Models: Advocate for a fairer rate cap formula and explore alternative funding mechanisms.
- Shared Services: Implement shared IT, procurement, and infrastructure services to optimise resources.
- Climate Resilience: Build infrastructure that withstands extreme weather and supports community safety.
What Councils Can Do Now
- Grant Strategy: Focus on securing untied and infrastructure-specific grants. Consider partnerships to share expertise in grant applications.
- Asset Renewal Plans: Audit infrastructure needs and develop proactive maintenance schedules to mitigate future costs.
- Invest in People: Offer training and career pathways to address skills shortages. Engage with external partners for short-term expertise.
- Collaborate for Efficiency: Explore shared service models with neighbouring councils to reduce costs and improve service delivery.
- Advocate for Change: Join with peak bodies like @ruralcouncilsvictoria to push for systemic reforms in funding models and grant processes.
- Plan for Resilience: Embed climate adaptation into infrastructure projects and community planning.
Why This Matters
Victoria’s councils are at a crossroads. Acting now to address these challenges not only improves financial health but also ensures communities continue to receive essential services. With thoughtful planning, collaboration, and strategic investment, councils can build a sustainable future.
Grantus is here to help. With deep expertise in governance, grant strategy, and regional development, we’re ready to support your council in navigating these challenges and seizing opportunities. Let’s work together to drive meaningful change.
Simon Coutts
Simon is the CEO and Founder of Grantus, a trusted advisor in strategic funding, complex problem solving, and stakeholder management, driving growth and public benefit for organisations dedicated to making a lasting impact. Book a ‘Borrow My Brain‘ session with Simon.
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