Local authorities can take several steps to avoid being unsustainable including generating income via grants and collaborating more as shared services. The following six points highlight where local government are working successfully across Australia now, to ensure they remain sustainable.
- Financial planning and budgeting: Local authorities can improve their financial sustainability by developing comprehensive financial plans and budgets that take into account their revenue sources, expenditures, and long-term financial goals.
- Diversifying revenue sources: Many authorities have been exploring alternative revenue streams. Grants are available - even if you are rural and developing partnerships with private sector organisations may also hold keys.
- Encouraging economic development: Local authorities can promote economic development in their communities to increase their financial base such as supporting small businesses, promoting entrepreneurship and attracting new investment.
- Managing debt wisely: Managing debt wisely is naturally only borrowing what the council or authority can afford to repay and ensuring that the funds borrowed are used for investment in assets that will generate a return.
- Enhancing transparency and accountability: Local authorities can increase their transparency and accountability by publishing regular financial reports, involving stakeholders in budgeting processes, and being open and transparent about their finances.
- Collaborating with other local authorities: This is happening now with shared ICT Services regionally. Local authorities looking to collaborate with other local authorities, share services and resources and pool resources will help reduce costs and increase efficiencies for all.
By taking these steps local authorities can ensure their long-term financial sustainability and provide effective services to their communities. Strategic Directions works to help local authorities collaborate via our CIO Roundtables, grants writing and project support teams.
Be sure to contact us and we would be happy to provide clients you can speak with to find out how we do it better.
