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13.2

Governance Report June 2024

13.2

Governance Report June 2024

Directorate

People, Partnerships and Performance

Director

Georgie Hill

Manager

Danny Bilaver

Attachment(s)

1. Record of Informal Meeting of Councillors [

13.2.1

- 8

pages]

2. Delegates and Representatives Report [

13.2.2

- 2

pages]

3. Submission to the Inquiry into Local Government Funding

and Service Delivery in Victoria [

13.2.3

- 44 pages]

Purpose

For Council to consider:

•

A summary of recent Governance activity.

•

Contracts entered into, and works orders approved in accordance with the S7

Instrument of Sub Delegation.

•

Councillor Declarations of Representations by Members of Parliament.

•

A proposal to amend the 2024 Council Meeting schedule.

•

A submission to the Inquiry into Local Government Funding and Service Delivery

in Victoria.

Council Recommendation

That Council:

a. Notes the:

i. Governance Report June 2024.

ii. Contracts entered into, and works orders approved, in accordance

with S7 Instrument of Sub Delegation (24/3453AQ; 24/3466;

24/3473Q; 24/3476; 24/3485; 24/3501).

iii. Records of Informal Meetings of Councillors, at Attachment 1 to

this report, for incorporation in the minutes of this meeting.

iv. Delegate’s and Representative’s Reports, at Attachment 2 to this

report, for incorporation in the minutes of this meeting.

v. Councillor Declarations of Representations by Members of

Parliament.

b. Adopts the amendments to the meeting schedule for the months of

September 2024 and November 2024, shown at Table 1 in this report,

and authorises the Chief Executive Officer to further amend the meeting

schedule for September, October and November 2024 should special

circumstances arise.

c. Endorses the submission to the Inquiry into Local Government Funding

and Service Delivery in Victoria at Attachment 3 to this report.

Background

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The monthly governance report is a standing report to Council, in accordance with best

practice and good governance principles, and to ensure compliance with the

requirements of the

Councillor Code of Conduct

2021 (Code), and Councillor Support (Major) Policy 2020.

Matters for Consideration

Exercise of Delegated Authority

Council delegates powers, duties and functions to the Chief Executive Officer in order to

support efficient operation and delivery of Council services. The Chief Executive Officer

has sub-delegated some authority to Directors (and other Council officers). Significant

decisions made, or actions undertaken exercising delegated authority, are reported to

Council as a transparency and accountability measure.

The Chief Executive Officer has been delegated authority by Council to award contracts

up to $2,000,000 (exclusive of GST) through an Instrument of Delegation made on 23

April 2024 (S5 Instrument of Delegation to the Chief Executive Officer). The Chief

Executive Officer has sub-delegated authority to Directors to award contracts up to

$200,000 (inclusive of GST) through an Instrument of Delegation made on 12 December

2023 (S7 Instrument of Sub-Delegation by the Chief Executive Officer).

Contracts entered into, and works orders approved, in accordance with S7

Instrument of Sub-Delegation

Contracts entered into, and works orders approved, under delegation since reporting to

the last Council Meeting are:

Contract

No.

Description

Successful

Tenderer

Contract

Amount (inc

GST)

Date Awarded

24/3453AQ Brimbank Sediment

Basin Clean Out

Naturform Pty

Ltd

$141,583 16/5/2024

24/3466 Design Supply and

Installation of a

Modular Change Room

Keilor Park Oval 2

K L Modular Pty

Ltd

$917,730 14/5/2024

24/3473Q Supply and Installation

of Feature Lighting

Princess Lane St Albans

High Access

Cabling Pty Ltd

$172,062 23/5/2024

24/3476 Asphalt Resurfacing at

various Roads

Asphaltech Pty

Ltd

$476,238 22/5/2024

24/3485 Robertson’s Homestead

Restoration Works

Stokes Rousseau $762,100 22/5/2024

24/3501 Selwyn Reserve Cricket

Nets Construction

RMS

Groundworks Pty

Ltd

$391,482 28/5/2024

Records of Informal Meetings of Councillors

An Informal Meeting of Councillors includes meetings that are:

•

Scheduled or planned for the purpose of discussing the business of Council or

briefing Councillors,

•

Attended by at least one member of Council staff, and

•

Not Council meetings, Delegated Committee meetings or Community Asset

Committee meetings.

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Written records of Informal Meetings of Councillors are kept and include the names of all

Councillors and Council officers attending, the matters considered, any conflict of interest

disclosures made, and whether a Councillor who has disclosed a conflict of interest

leaves the meeting.

These records, as soon as practicable, will be reported at a Council Meeting, and

incorporated in the minutes of that Council Meeting.

Records of Informal Meetings of Councillors

(Attachment 1)

were received for the

following meetings:

Date

Event

20 May 2024

Safety and Wellbeing Partnership

28 May 2024

Briefing

29 May 2024

Disability Advisory Committee

14 June 2024

Council Meeting Briefing

Delegate’s and Representative’s Reports

The participation on a range of local, specific issues, committees established by Council,

peak body/sector associations, and local and regional forums, is an essential part of the

representative role Council plays. Council nominates Councillors as delegates and

representatives to these committees annually.

The role, as the Council delegate or Council representative on these committees, is to

represent the position of Council, and report back to Council at a Council Meeting on the

issues or progress of the committees, and any recommendations made by the

committees.

Delegate’s and Representative’s Reports

(Attachment 2)

were received for the

following meetings:

Date

Event

Councillor/s

20 May 2024

Safety and Wellbeing Partnership Cr Kerr

Councillor Declarations of Representations by Members of Parliament

Councillors have a legitimate role in advocating on behalf of their communities. At times,

this may include the receiving of representations by a Member of State or Federal

Parliament, to Council or Councillors. Councillors will declare and record any

representations made to a Councillor by a Member of Parliament or their staff

representative.

Councillor Declaration of Representations by Members of Parliament was received for the

following meetings.

Date

Councillor Member of Parliament Matter Discussed

24 May 2024 Cr Borg

Hon Dr Daniel Mulino MP Mental health

Vietnamese Museum

Airport Rail Link

Global challenges

31 May 2024 Cr Rasic

Trung Luu MP

Calder Freeway

Melbourne Airport Rails /

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Sunshine Precinct

Mental Health

Greening the West

Better Buses for

Melbourne’s West

Homelessness

Roads

JR Patterson Reserve

Amendments to the 2024 Council Meeting Schedule

Since the adoption of the 2024 Meeting scheduled in September 2023, amendments

have been proposed to the Local Government (Electoral) Regulations 2020. The

amendments have arisen due to the Victorian Electoral Commission advising that the

current election timelines are no longer viable as there has been an increase in the scale

and complexity of local government elections, including changes to enrolment

entitlements, population growth, higher number of wards, likely increase in the number

of candidates, and reduction in mail services offered by Australia Post.

To accommodate the Victorian Electoral Commission’s advice, Local Government Victoria

has proposed that the Candidate Nomination Period will now commence Monday 9

September and close 12.00pm Tuesday 17 September. Council’s election (caretaker)

period will now commence 12pm Tuesday 17 September, requiring amendments to

Councils’ meeting schedule for the month of September to avoid Council having two

Council Meetings during the election period.

Giving the changing dynamics of the election period and the potential need to review

Council’s post-election meeting structure (due to potential for late declaration of the

election) it is also recommended that the Chief Executive Officer be authorised the ability

to amend the September, October and November 2024 meeting schedule to cover for

these special circumstances.

The September 2024 Council Meeting is recommended to be rescheduled from

17 September 2024 to 10 September 2024.

The Swearing in Ceremony for Councillors will be held Wednesday, 6 November 2024.

The Council Meeting to elect the Mayor and Deputy Mayor for 2024/25 will be held

Tuesday, 19 November 2024.

Council will resume its meeting cycle in December 2024 as previously adopted in 2023.

Table 1

Month

Activity

Date

Time

September

Council Meeting

10 September 7.00pm

Month

Activity

Date

Time

November

Swearing in of New Council 6 November

6.00pm

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Election of Mayor/Deputy

Mayor

19 November 6.00pm

Submission to the Inquiry into Local Government Funding and Service Delivery

in Victoria

On 3 May 2024 the Legislative Council has tasked the Economy and Infrastructure

Committee with investigating local government funding and service delivery in Victoria.

The inquiry will cover cost shifting impacts, core service delivery adequacy, overall

revenue structures, their sustainability, and potential alternative funding models.

Submissions have been invited by 28 June 2024.

Attachment 3

is Brimbank’s submission to this inquiry, highlighting challenges specific

to our Council along with support for the submission from Local Government Finance

Professionals (FinPro). FinPro is the peak body representing local government finance

professionals in Victoria.

Public hearings will be held and a report to Parliament is due by 28 November 2024.

Resource And Risk Implications

Resource requirements can be met within the Annual Budget 2023/2024.

Regulatory:

legal, legislative or regulatory implications including the rights/obligations

of stakeholders

• This report fulfils legislative governance obligations, to provide transparent and

accountable reporting of governance activity.

There are no Community, Safety, Environmental or Financial risks identified.

Legislation/Council Plan/Policy Context

This report supports the Council Plan 2021-2025 strategic direction and objective of:

4. Leadership and Governance - A high performing organisation that enacts the

vision and decisions of Council through the delivery of quality and innovative

services - A fairer place for all

• High Performing and Accountable - Our workforce strives to enhance services and

liveability for the Brimbank community.

This report complies with the

, Council Plan 2021-2025, S5 Instrument of

Delegation to the Chief Executive Officer, S7 Instrument of Sub-Delegation by the Chief

Executive Officer, Councillor Code of Conduct 2021 and Procurement Policy.

Council officers contributing to the preparation and approval of this report, have no

conflicts of interests to declare.

Page 1 of 2

Record of Informal Meeting

of Councillors

Safety and Wellbeing Partnership

20 May 2024

3:30 pm to 5:00 pm

Online (MS Teams)

☐

Cr Victoria Borg

☐

Cr Sarah Branton

☐

Cr Thuy Dang

☐

Cr Sam David JP

☒

Cr Maria Kerr

☐

Cr Bruce Lancashire, Mayor

☐

Cr Jasmine Nguyen

☐

Cr Thomas O'Reilly

☐

Cr Jae Papalia

☐

Cr Ranka Rasic, Deputy Mayor

☐

Cr Virginia Tachos

Damir Lendich, Coordinator Youth Services

Disa Linden-Perlis, A/Coordinator Social Policy and Research

Mindy Allott, Social Planning and Policy Officer (Community Safety)

Victoria Police representatives x2

cohealth representatives x3

AAFRO (The Australian African Foundation for Retention and Opportunity)

representatives x2

Jesuit Social Services representative

The Youth Junction representative

Department of Education representative

Department of Families, Fairness and Housing representatives x2

Department of Justice and Community Safety representative

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Attachment 13.2.1

Page 2 of 2

Mindy Allott

1. Welcome and introductions

NIL

<Select one>

2. Victoria Police: Update on current policing

operations and trend

NIL

<Select one>

3. Council: Hotspots update and discussion

NIL

<Select one>

4. Focus Topic: Alcohol and Other Drugs

NIL

<Select one>

5. General member discussion and updates

NIL

<Select one>

6. Next meeting and close

NIL

<Select one>

Forward completed

to Governance within 48 hours of the

meeting for Reporting to Council.

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Attachment 13.2.1

Page 1 of 2

Record of Informal Meeting

of Councillors

Briefing

28 May 2024

6.00pm to 8:20pm

Council Chamber

☒

Cr Victoria Borg

☐

Cr Sarah Branton

☐

Cr Thuy Dang

☒

Cr Sam David JP

☐

Cr Maria Kerr

☒

Cr Bruce Lancashire

☒

Cr Jasmine Nguyen

☐

Cr Thomas O'Reilly

☒

Cr Jae Papalia, Deputy Mayor

☒

Cr Ranka Rasic, Mayor

☐

Cr Virginia Tachos

Fiona Blair, Chief Executive Officer

Lynley Dumble, Director Community Wellbeing

Georgie Hill, Director People Partnerships and Performance

Chris Leivers, Director Infrastructure and City Services

Mark Stoermer, Director Corporate Services

Kelvin Walsh, Director City Futures

Danny Bilaver, Manager Governance and Risk

Leanne Deans, Manager City Strategy

Michelle Van Gerrevink, Manager Climate Emergency and Environment

Justin Burgess, Coordinator Strategic Planning

Liz Lewis, Principal Strategic Planner

Dan George, Organisational Compliance Officer

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Attachment 13.2.1

Page 2 of 2

Municipal Monitors; Penny Holloway, Janet Dore

Georgie Hill, Director People Partnerships and Performance

1. Submission to Developing a New Plan for

Victoria

<Select one>

2. Sunshine Energy Park Solar Farm Business

Case

3. Biodiversity Strategy Review

4. Governance Policies Review

5. Organisational Strategy

Forward completed

to Governance within 48 hours of the

meeting for Reporting to Council.

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Attachment 13.2.1

Page 1 of 2

Record of Informal Meeting

of Councillors

Disability Advisory Committee

29 May 2024

10am - 12pm

Level 6, Brimbank Community and Civic Centre and Zoom

☒

Cr Victoria Borg

☐

Cr Sarah Branton

☐

Cr Thuy Dang

☐

Cr Sam David JP

☐

Cr Maria Kerr

☐

Cr Bruce Lancashire, Mayor

☐

Cr Jasmine Nguyen

☐

Cr Thomas O'Reilly

☐

Cr Jae Papalia

☐

Cr Ranka Rasic, Deputy Mayor

☐

Cr Virginia Tachos

Raewyn Afu - Coordinator Strengthening Communities

Julieanne Spagnolo - Service Navigation Officer

Community representatives x 4

Raewyn Afu - Coordinator Strengthening Communities

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Attachment 13.2.1

Page 2 of 2

1. Welcome and Acknowledgement of Country

Nil

<Select one>

2. Previous minutes

Nil

<Select one>

3. Update on actions from previous meeting

- NOM update on Additional Accessible Parking

in front of Brimbank Community & Civic Centre

Nil

<Select one>

4. Disability Action Plan update

Nil

<Select one>

5. Presentations

- Draft Accessible and Inclusive Events Guide

- Service Navigation Officer role

Nil

<Select one>

6. Hidden Disability Sunflower initiative update

Nil

<Select one>

7. Brimbank Disability Network Group update

Nil

8. Other Business

Nil

9. Next meeting and close

Nil

Forward completed

to Governance within 48 hours of the

meeting for Reporting to Council.

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Attachment 13.2.1

Page 1 of 2

Record of Informal Meeting

of Councillors

Council Meeting Briefing

11 June 2024

6.00pm to 8:30pm

Zoom

☒

Cr Victoria Borg

☒

Cr Sarah Branton

☒

Cr Thuy Dang

☒

Cr Sam David JP

☒

Cr Maria Kerr

☒

Cr Bruce Lancashire

☒

Cr Jasmine Nguyen

☒

Cr Thomas O'Reilly

☒

Cr Jae Papalia, Deputy Mayor

☒

Cr Ranka Rasic, Mayor

☐

Cr Virginia Tachos

Fiona Blair, Chief Executive Officer

Lynley Dumble, Director Community Wellbeing

Georgie Hill, Director People Partnerships and Performance

Chris Leivers, Director Infrastructure and City Services

Mark Stoermer, Director Corporate Services

Kelvin Walsh, Director City Futures

Danny Bilaver, Manager Governance and Risk

Rachel Deans, Manager Customer Experience and Service Innovation

Janet Dore, Municipal Monitor

Penelope Holloway, Municipal Monitor

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Attachment 13.2.1

Page 2 of 2

Georgie Hill, Director People Partnerships and Performance

1. Governance Report June 2024

<Select one>

2. Governance Policies Review

3. Quarterly Advocacy Report June 2024

4. Brimbank Planning Scheme Amendment

C239brim Housing and Neighbourhood

Character Strategy

5. Biodiversity Strategy Review

6.5 - Cr Thomas

O'Reilly due to

employment

Yes

6. Submission to Developing a Plan for Victoria

7. Final Draft Brimbank City Council Innovate

Reconciliation Action Plan 2024-2026

8. Final Draft Sports Facility Hire, Licenses and

Leases Agreement Policy 2024

9. Contract No. 24/3495 - Provision of Kerbside

Recyclables Processing

10. Contract No 19/2503 - Provision of Pound and

Animal Collection - Extension of Contract

11. Aged Care Reforms

12. Final Draft Council Plan Action Plan and Budget

2024/2025 Consultation

13. Quarterly Advocacy Report

14. Councillor Discussion

Forward completed

to Governance within 48 hours of the

meeting for Reporting to Council.

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Attachment 13.2.1

Page 1 of 2

Council Representative's

Report

Cr Maria Kerr

Safety and Wellbeing Partnership

20 May 2024

Mindy Allott

Report

Included an Acknowledgement of country, note that the meeting was being recorded, requests

for conflict of interest, introductions of new members, apologies.

Provided update on:

•

Recent Neighbourhood Policing Forum

•

Current crime reduction operations

•

Main policing and crime issues in Brimbank

•

Responded to questions about illegal trade on Alfreida Street, resourcing of Police in Brimbank and

safety concerns affecting vulnerable community members.

Provided an overview of the objectives of the Hotspots Working Group.

Presented overview of current trends across Brimbank Hotspots:

•

Currently 4 hotspots: Errington Reserve, St Albans Town Centre, Sunshine Town Centre, Watergardens

Shopping Centre.

•

We're seeing patterns of the same people sleeping rough circulating through different locations.

•

Activations and youth engagements are proving really successful across multiple locations.

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Attachment 13.2.2

Page 2 of 2

•

Service needs and gaps: AOD and homelessness services that can support individuals with complex

mental health and housing needs.

Presentation on Drug Trends in Brimbank: Brimbank statistics presented on harms from AOD

use in Brimbank including AOD-related crime, AOD-related hospital admissions, and AOD

related Ambulance attendance.

Group discussions of the following questions:

•

Provided information on AOD services run by cohealth, JSS, The Youth Junction inc.

•

Discussions identified need for 1) information on AOD services/responses to be provided to community

2) coordination of existing services and 3) advocacy for additional services/funding.

•

Identified need for information on 1) AOD service usage 2) school-based AOD education/primary

prevention

•

Coffee with a Cop in St Albans CBD Tuesday 21 May - flyer shared in meeting chat

•

Discussed advocacy to establish a Police Hub at Watergardens.

Next meeting scheduled for Monday 15th July at 3:00 - 5:00 pm

Recommendations

There were no matters to be considered by Council.

15 July 2024 at 3:00 pm, via MS Teams

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Attachment 13.2.2

T 9249 4000

W brimbank.vic.gov.au

PO BOX 70

Sunshine, Victoria 3020

11 June 2024

Committee Inquiry into Local Government Funding and Service Delivery in Victoria

Dear Members of the Inquiry

Brimbank City Council welcomes the opportunity to provide a submission to the Inquiry

into Local Government Funding and Service Delivery in Victoria. We align our submission

with the findings of the FinPro submission and wish to highlight specific circumstances

unique to our council that further emphasise the need for reform in local government

funding and service delivery mechanisms.

We also attach the Municipal Association of Victoria's submission to the Commonwealth

Parliamentary Inquiry into Local Government Sustainability. The submission highlights

Brimbank's efforts to combat unemployment through mentoring, micro-credential

courses, community capacity investment, and local responses to disadvantage,

showcasing the benefits of financially sustainable Councils and Local Government

leadership.

Brimbank City Council agrees with the key findings of the FinPro submission, particularly

regarding the financial sustainability challenges faced by local governments in Victoria.

The issues of cost shifting, ability of councils to adequately grow revenue under the

current rate cap system, and insufficient investment in asset renewal strongly align with

our experience. We support the recommendations for reassessing rate caps, improving

asset reporting, and establishing a Local Government Cost Index.

Brimbank City Council serves a lower socio-economic community that is also highly

multicultural. This unique demographic presents both opportunities and challenges in

delivering equitable and effective services. Other challenges include low education levels,

high unemployment and a history of land contamination.

Our community's socio-economic status means that many residents are more reliant on

our services, placing additional pressure on the council to find alternative funding sources.

At the same time, our multicultural population requires a broader range of services and

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Attachment 13.2.3

Page 2 of 5

programs to ensure social cohesion and inclusivity. These services often come at a higher

cost, as they need to be culturally appropriate, accessible, and sometimes delivered in

multiple languages.

The role of Brimbank City Council in fostering social cohesion cannot be understated. We

provide critical community services, including but not limited to, language classes,

cultural festivals, social integration programs and the provision of community facilities.

These initiatives are essential for maintaining harmony and inclusiveness in our diverse

community. However, the cost of delivering these programs is substantial, and current

funding mechanisms do not adequately account for these additional expenses.

Another significant challenge we face are the ongoing management obligations of

contaminated land within our jurisdiction. Historically, several areas that are now under

the responsibility of Brimbank City Council were utilised as disposal sites for Melbourne's

metropolitan waste.

Post closure obligations and remediation of these sites is not only environmentally critical

but also imposes substantial financial burdens on the Council. The costs associated with

meeting EPA notice requirements including contamination assessment, clean-up, and

ongoing monitoring are significant and divert funds from other essential community

services. Council wears the full cost for managing these sites even though they were

licensed to operate by the State Government.

The financial sustainability of Brimbank City Council is further strained by the need to

invest in infrastructure and services that meet the growing and diverse needs of our

community. Despite these challenges, we remain committed to delivering high-quality

services and infrastructure through strategic planning and continuous improvement.

Brimbank City Council has undertaken extensive service planning to ensure that we are

meeting the current and future needs of our community efficiently which has been guided

by our Community Vision and Council Plan. Our continuous improvement initiatives focus

on optimizing service delivery, reducing costs where possible, and enhancing the quality

of services provided. These efforts are critical in ensuring that we can sustain our service

levels despite financial constraints.

To support our strategic planning and service delivery, Brimbank City Council is investing

in modern systems and technologies. These investments aim to improve our operational

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Attachment 13.2.3

Page 3 of 5

efficiency, enhance data-driven decision-making, and provide better services to our

residents. While these investments require upfront capital, they are essential for long

term sustainability and improved service delivery.

Councils are on the frontline preparing for, mitigating, adapting and responding to the

risks and impacts of climate change as communities across Victoria experience the

compounding effects of successive flood, storm, fire, and heatwave events. Councils play

a critical role in community resilience and wellbeing, providing vital community services,

coordinating local disaster preparedness, response, and recovery, and managing high

value community assets and infrastructure including roads, community buildings and

facilities, parks, paths, tracks, and trails, all of which are impacted by climate change.

A recent economic analysis of the direct risks to council-owned community assets from

climate hazards in Greater Melbourne assessed average annual damages as currently

$90-120 million. This is expected to increase to around $210-$300 million by 2050 (a

150% increase) and $400-$540 million by 2100 (a 300% increase) under business as

usual (i.e. no adaptation).

1

Victorian councils have a legislated responsibility to respond to climate change, and many

Council’s, including Brimbank, have adopted ambitious corporate and community

emissions reduction targets and climate action plans; but state and federal governments

have greater capacity to generate the funds required to adequately mitigate and adapt to

climate change as the primary recipients of tax revenue. A multi-level governance

approach is urgently needed to meet the scale of the climate change challenge for the

benefit of current and future generations of Victorians.

Brimbank is especially vulnerable to urban heat island effect

2

(UHI). Roughly 60% of

Brimbank is impervious surfaces such as roads, footpaths, carparks and building roofs.

The municipality is ranked number one in Greater Melbourne for experiencing urban heat

island effect resulting in average summer temperatures 10.75 degrees higher than

surrounding rural areas. Brimbank has 10.2% tree canopy cover compared to 16.2% for

Greater Melbourne. Brimbank’s demographic profile and urban environment makes it

1 Natural Capital Economics, 22 March 2023, Adaptive Community Assets: A report prepared for the Eastern Alliance for Greenhouse

Action. (link)

2 Data for the UHI effect was obtained from the Clean Air and Urban Landscapes Hub's 'Urban Vegetation, Urban Heat Islands and Heat

Vulnerability Assessment in Melbourne, 2018' report (Su et al,2019). Researchers calculated the UHI effect for all 31 local government

areas (LGAs) in Melbourne by deriving land surface temperature data from Landsat 8 thermal data collected by the United States

Geological Survey.

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Attachment 13.2.3

Page 4 of 5

especially vulnerable to heatwave impacts. High social vulnerability tends to intensify heat

health risk. There are several suburbs with the municipality are very vulnerable to

extreme temperatures, including St Albans, Delahey, Deer Park and Sunshine North. This

vulnerability is based on several factors, including age, general health, ethnicity,

socioeconomic status, access to air condition, access to health services, type of housing,

urban design, and land use.

A recent VCOSS paper ‘A Comparison Of Disad

vantage and

Urban Heat Island Effect In Melbourne, Australia,’ (Latham, 2024) compared the

Australian Bureau of Statistics’ 2016 Index of Relative Socio

-economic Disadvantage

scores against the urban heat island effect of all 27 ‘city’ local government are

as in

metropolitan Melbourne in Victoria, Australia. The City of Brimbank has the highest UHI

effect (+10.75oC) in Melbourne and the second lowest IRSD score (921).

Based on the challenges outlined above and our alignment with FinPro's findings,

Brimbank City Council recommends the following actions to support financial sustainability

and effective service delivery:

1.

Adjust rate capping policies to reflect the unique socio-economic and

demographic profiles of different councils. This would allow councils like Brimbank to generate

sufficient revenue to meet their community's needs.

2.

Develop an index that accurately reflects the

cost drivers faced by local governments, particularly those in lower socio-economic and

multicultural areas. This index should inform funding allocations and rate cap adjustments.

3.

Provide

targeted grants and financial assistance for councils dealing with historical contamination

issues. This support would alleviate the financial burden on councils and allow them to allocate

more resources to community services.

4.

Allow greater flexibility in how councils can use state and

federal grants to address local priorities and emerging needs. This flexibility would enable

councils to respond more effectively to the specific challenges faced by their communities.

5.

Recognise and fund the additional costs associated

with delivering services in multicultural communities. This includes support for language

services, cultural programs, and community integration initiatives.

6.

A multi-level governance approach is

urgently needed to meet the scale of the climate change challenge for the benefit of current and

future generations of Victorians.

Brimbank City Council is committed to serving our diverse community with integrity,

efficiency, and responsiveness. However, the financial sustainability of our council is

under significant pressure due to the combined effects of rate capping, historical

contamination issues, and the unique needs of our socio-economically disadvantaged and

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Attachment 13.2.3

Page 5 of 5

multicultural population. We strongly urge the Inquiry to consider these factors and the

recommendations outlined above to ensure that councils like Brimbank can continue to

provide vital services and infrastructure to their communities.

We thank the Inquiry for considering our submission and welcome any further discussions

or inquiries into the matters raised.

Yours sincerely

Cr Ranka Rasic

Mayor

Brimbank City Council

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Attachment 13.2.3

SUBMISSION TO PARLIAMENTARY INQUIRY INTO

LOCAL GOVERNMENT SUSTAINABILITY

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Attachment 13.2.3

ACKNOWLEDGEMENT OF COUNTRY

We acknowledge the Traditional Custodians of the land on which we live. We recognise their continuing

connection to land, waters and culture and pay our respects to their Elders past, present and emerging.

Disclaimer and Copyright

This submission has been prepared by the MAV to represent the views and interests of Victoria’s councils. It does not purport to reflect the exact views of individual

councils.

The MAV is the statutory peak body for local government in Victoria, representing all 79 municipalities within the state.

© Copyright MAV

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EXECUTIVE SUMMARY

VICTORIAN LOCAL GOVERNMENT

BENEFITS OF FINANCIALLY SUSTAINABLE COUNCILS

FUNDING INFRASTRUCTURE AND SERVICES

WORKFORCE CHALLENGES AND OPPORTUNITIES

LOCAL GOVERNMENT LEADING THE WAY

ROLE OF THE AUSTRALIAN GOVERNMENT

REFERENCES

4 5 11 18 24 28 34 38

TABLE OF CONTENTS

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No one understands the challenges and

opportunities facing Victoria in the 21st century

better than local councils. From rapidly evolving

technology to social changes, shifting economies

to environmental pressures, our local

communities– and the local governments that

represent them–are at the forefront of multiple

transformations happening simultaneously.

Victorian councils are delivering the essential

services and infrastructure to meet local and

national priorities across numerous areas

including community resilience, social cohesion

and safety, climate change, and housing.

The direct connection between councillors and

council staff and the communities they serve

means councils are best placed to understand,

anticipate, and respond to the needs of those

communities. To efficiently deliver on local,

regional, and national priorities we need to

harness this local government knowledge and

expertise.

Current funding models leave councils under

resourced and uncertain about their financial

futures. Many are forced to make hard decisions

about which essential community services to

exit. For example, across Victoria many councils

are exiting the provision of aged care, as their

overall financial position means they can’t carry

the risk of an uncertain funding model.

Early years education and care in Victoria

couldn’t exist without council facilities,

contributing to and enabling national productivity

outcomes. Increasingly Victorian councils are

withdrawing from early years service and

infrastructure provision due to escalating

infrastructure costs and workforce shortages.

Financially sustainable councils can, and are

often required to, step in and respond to issues

as they emerge - from addressing social issues

to emergency response and recovery. We need

to ensure that councils have the ongoing

capacity to prevent, step in and respond to local

issues as they arise.

Brimbank Council in Melbourne’s west is pro

actively targeting unemployment through

mentoring programs and micro-credential

courses. These types of programs can’t happen

without financial security for councils.

There are serious risks to the financial

sustainability of Victorian councils. Increasingly,

councils report underlying deficits, reductions in

unrestricted cash and working capital, and

deteriorating asset renewal rates.

The Australian system of government is built on

an assumption of revenue sharing from higher

levels of government to more localised ones.

This addresses both the revenue-raising and

service delivery imbalance between tiers of

government and diverse needs between

jurisdictions.

These assumptions have eroded over time,

exacerbated by cost shifting, with councils and

local communities bearing the cost. As a share of

Commonwealth tax receipts, Financial

Assistance Grants are now the lowest they have

ever been.

For every dollar of revenue they collect, Victorian

councils manage $10 of physical assets like

parks, and roads and kindergartens. For the

Victorian Government this figure is $4, and for

the Commonwealth $0.40

The benefits of addressing these problems are

numerous, diverse, and immediate.

Financially secure councils are more proactive,

from providing preventative maintenance to

shaping a circular economy or prioritising

continuous improvement in service delivery.

Victoria’s 79 councils are incubators for

innovation. A partnership between Bass Coast,

Baw Baw, and South Gippsland Shire Councils

established MyLi as the first library corporation to

be a registered not for profit and has since

expanded to service Cardinia Shire.

Councils are also economic drivers and provide

high quality stable jobs to over 40,000 Victorians.

The Australian Local Government Association

estimates restoring Financial Assistance Grants

to 1% of Commonwealth tax receipts would

support over 22,000 additional FTE of jobs and

increase Gross Regional Product 1.4 times

greater than the investment required

¹

.

Trust in government has never been a more

important resource. Victorian councils want to

partner with their state and federal counterparts

in building social cohesion and realising their

communities’ aspirations. They need a funding

model that affords them the capacity to do so.

EXECUTIVE SUMMARY

1. Increase the quantum of Financial Assistance Grants to 1% of

Commonwealth tax revenue

2. Make grants more productive by:

a. Reducing administrative burden

b. Easing co-contribution requirements

c. Allowing for more flexible timelines

d. Expanding eligible projects beyond just shovel-ready

infrastructure

e. Reinstating, restoring, or reinvigorating funding streams

like the Local Roads and Community Infrastructure fund

3. Partner with local government, particularly to deliver technology

transformation and climate change adaptation and mitigation

and community resilience.

4. Address critical skill shortages through tertiary education and

skilled migration pathways

5. Incorporate principles of betterment into the Disaster Recovery

Funding Arrangements at a national level

6. Ambitiously pursue product stewardship to incentivise reducing

waste and ensure the costs of waste are borne by those who

create it

RECOMMENDATIONS

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VICTORIAN LOCAL GOVERNMENT

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Victorian local government is made up of 79

councils representing the state’s more than

six million people.

Councils are area-based representative

governments with a legislative and electoral

mandate to manage local issues and plan

for the community’s needs.

Councils and the communities they

represent are diverse. Council populations

range from 3,000 people to more than

340,000. The largest local government area

spans 22,000 square kilometres, and the

smallest just 8.6. Budgets range from $13

million to $580 million and collectively

councils manage over $140 billion in

physical assets and infrastructure.

The functions councils perform are just as

diverse. From emergency management to

economic development, maternal and child

health to kindergarten, food safety to road

management.

Victoria’s councils are commonly divided

into five comparator groups which will be

used throughout this submission and are

summarised on this page.

VICTORIAN LOCAL GOVERNMENT

Victorian council comparator groups

Population

Revenue

Physical Assets

Workforce FTE

Range [Median]

Range [Median]

Range [Median]

Range [Median]

Metropolitan

92,000 - 204,000 [149,000] $161m - $567m [$229m] $1.35bn - $4.73bn [$2.76bn]

468 - 2453 [707]

Interface

63,000 - 390,000 [206,000] $113m - $782m [$407m] $0.91bn - $6.64bn [$3.75bn]

324 - 1461 [700]

Regional City

20,000 - 282,000 [63,000] $66m - $619m [$164m] $0.63bn - $4.7bn [$1.19bn]

212 - 1597 [419]

Large Shire

16,000 - 61,000 [31,000]

$51m - $180m [$97m] $0.42bn - $1.44bn [$0.77bn]

171 - 358 [265]

Small Shire

3,200 - 18,000 [11,000]

$15m - $54m [$41m] $0.17bn - $0.48bn [$0.29bn]

41 - 197 [117]

Source: MAV, data source: Victorian Auditor General’s Office - Audited financial statements of councils, Australian Bureau of Statistics - Estimated Regional

Population, Victorian Local Government Grants Commission - Council Employment survey

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The breadth of activities undertaken by

councils touch every resident in their day-to

day life. To name just a portion:

• Road management and maintenance

• Aged care

• Protecting historic buildings

• Promoting local tourism

• Conducting citizenship ceremonies

• Library services

• Community buses

• Kindergarten

• Managing permits for on-street trading

and busking

• Regulating prescribed premises such as

food businesses, beauty and body art

salons, and rooming houses

• Assessing and issuing planning permits

• Regulating the safety and compliance of

buildings

• Kerbside and public bin collections

• Street sweeping, litter management and

graffiti removal

• Supporting community groups through

grants and advice

• Prevention of Violence Against Women

and gender equity

• Emergency management

• Street tree and public tree planting and

maintenance

• Issuing permits for septic tanks

• Roadside pest and weed control

• Investigating and addressing nuisance

complaints

• Neighbourhood and community houses

• Maternal and Child Health services

• Immunisation

• Sport and recreation facilities

• Resident and disabled parking permits

• Animal welfare and registration

• Public parks, gardens, and playgrounds

• Stormwater management

• Active transport routes

• Noise from residential buildings or

residential construction sites

• Foreshore and waterfront management

• Youth centres and programs

• Regional airports

• Promoting diversity and inclusion

• Strategic planning

• Childcare

• Street lighting

• Supporting local businesses and

chambers of commerce

VICTORIAN LOCAL GOVERNMENT

Selected Victorian council activities based on 2022-23 data. Source: MAV

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Fiscal Relations

Government fiscal relations in Australia

operate on principles of vertical fiscal

imbalance (VFI) and horizontal fiscal

equalisation (HFE).

VFI means that the revenue raising powers

across different levels of government do not

reflect their expenditure needs. In Australia

over the last decade the Commonwealth

has collected 81% of total tax revenue, the

States and Territories 15.5% and local

governments the remaining 3.5%. By

comparison local governments manage 25%

of public non-financial assets and states and

territories 65% while the Commonwealth

manages only 10%.

To put this in a Victorian context, for every

dollar of revenue they collect, Victorian

councils manage $10 of physical assets like

parks and roads and kindergartens. For the

Victorian Government this figure is $4, and

for the Commonwealth $0.40.

Transfers such as Financial Assistance

Grants are not a nicety, they are a

fundamental part of how Australian

government works. However, as a

percentage of Commonwealth tax receipts

they have now reached historic lows. This,

combined with State-based constraints on

own-source revenue has left many Victorian

councils struggling to find the necessary

funds to continue services.

The other principle is that of horizontal fiscal

equalisation (HFE). This recognises that

across jurisdictions at the same level of

government, the capacity to raise revenue

and the costs of performing functions varies

significantly.

HFE proposes that different jurisdictions

should be able to provide similar levels of

service to their communities at a similar

level of burden.

In Victoria the Victorian Local Government

Grants Commission assesses cost and

revenue modifiers in determining the share

of Financial Assistance Grants that is

distributed to each council.

Cost modifiers include proportions of aged

pensioners, indigenous people, and people

under 6 within the population, environmental

risk from fire and flood, languages spoken,

socio-economic status within the

municipality, remoteness and population

dispersal, tourism, and whether the council

provides or draws from broader regional

services.

Revenue modifiers include household

income, the proportion of valuations which

are commercial properties, and the value of

development occurring.

In general, these factors identify rural

councils as being less able to raise revenue

and facing higher costs to deliver equivalent

service levels than metropolitan councils,

though there are exceptions.

VICTORIAN LOCAL GOVERNMENT

Source: MAV, data sources: Australian Bureau of Statistics – Taxation Revenue, Reserve Bank of Australia – Commonwealth

Government Taxation Receipts, Department of Infrastructure, Transport, Regional Development, Communications and the Arts –

Financial Assistance Grants Cash Payments & Local Government National Reports

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Key Indicators

There are serious risks to the financial

sustainability of Victorian councils.

Increasingly, councils report underlying

deficits, reductions in unrestricted cash and

working capital, and deteriorating asset

renewal rates.

This is made more concerning by the fact

that State-based reporting does not pick up

on these factors. Several decisions in the

way the state monitors financial

sustainability obfuscate underlying

problems.

Accounting surplus rather than underlying

surplus is frequently used. Total cash is also

referred to rather than unrestricted cash. In

both cases these are significantly distorted

by money that is ringfenced from operational

uses, such as developer contributions.

Over time the State has also included

upgrade expenditure when calculating asset

renewal gaps, rather than purely

maintenance expenditure. This provided a

significant boost to the number of councils

that appear to be meeting targets but is

inaccurate.

A further challenge to analysis is the timing

of release of Financial Assistance Grants,

which can make up a sizable portion of the

underlying revenue for many councils. A

portion of Financial Assistance Grants has

often been brought forward into the

preceding financial year, but in recent years

particularly the % of total grants brought

forward has varied. This can lead to councils

effectively receiving much more than a

normal yearly allocation in one year, and

much less in the following year.

In 2021-22 normalising these payments

would bring the number of councils reporting

deficits from 35 up to 43, and in 2022-23

from 37 up to 46.

A key part of the deterioration in local

government sustainability has been the

introduction of a rate cap in Victoria.

Victoria’s rate cap is set based on

Department of Treasury and Finance

forecasts for CPI growth. There are two

main problems with this.

Firstly, CPI is not an accurate indicator of

the costs facing local government. The MAV

has developed a cost indicator that better

reflects what councils are paying year to

year to maintain service standards which is

detailed elsewhere in this paper.

Secondly, there is no adjustment

mechanism to account for when forecasts

do not match reality. Instead, the rate cap is

merely set based on the new forecast

without consideration of previous gaps.

Incorporating a mechanism to “catch up” via

future rate caps would go some way to

addressing the compounding revenue

challenges councils face.

The rate cap is not the sole challenge for

councils, however. Even absent of a rate

cap, councils are constrained by the

capacity of their community to pay additional

costs. In many cases, communities with the

least ability to pay are also the most

expensive to service due to factors such as

socio-economic disadvantage and small and

disparate populations.

Ultimately this needs to be addressed

through redistributions from other levels of

government, including restoring the

quantum of Financial Assistance Grants to

previous levels and expanding and

improving upon other sources of grants.

VICTORIAN LOCAL GOVERNMENT

Source: MAV and LG Finance Professionals - Sustainability Gap Report, data source: council budgets and financial statements

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councils. When looked at as a portion of

total local government expenditure, Australia

spends the most by far - double that of the

country ranking second.

This points again to councils in Australia

being a level of government that is laden

with infrastructure. This affects many facets

of their overall financial sustainability as

there are large baked in maintenance and

renewal costs.

within their state. Local governments in

Victoria are established by state legislation

and the barriers to the Victorian Government

making unilateral decisions are political

ones rather than legal ones.

Australian local government is smaller than

comparable counterparts.

It receives the smallest proportion of its

income through transfers from other levels

of government. It is the most reliant on non

tax non-grant revenue, which in Victoria

consists largely of user fees and fines.

This reliance has significant equity

implications, as the costs of providing

services fall more proportionally on those

using that service.

While having a fairly low capital expenditure

compared to other countries, this is due to

the smaller overall budgets of Australian

International

Comparison

Using OECD data, we can examine how

Australian local government compares to

similar countries across some key

indicators.

The comparison countries are those which

are classified as high-income and have

federal systems of government, rather than

unitary ones. That is, subnational

governments have a right to exist and are

recognised in the constitution as having

powers the national government can’t take

away unilaterally.

Interestingly, without constitutional

recognition of local government councils

effectively operate within a unitary system

VICTORIAN LOCAL GOVERNMENT

Comparison of key local government indicators across high-income federated OECD countries 2019/20 data

Australia

Austria Belgium Germany

Spain Switzerland Canada

Per capita LG expenditure ($USD)

$ 1,302.60 7th $ 4,980.30 $ 3,871.50 $ 4,794.00 $ 2,445.50 $ 5,359.00 $ 4,472.90

LG expenditure as % of GDP

2.5% 7th

8.9%

7.4%

8.8%

6.4%

7.5%

9.3%

LG expenditure as % of total government expenditure

5.9% 7th 15.7%

12.4%

17.4%

12.2%

19.8%

17.3%

Grant and subsidy revenue per capita

$ 406.80 7th $ 3,137.10 $ 2,063.80 $ 2,374.50 $ 1,049.50 $ 906.10 $ 2,178.30

as % of LG revenue

31% 6th

63%

53%

50%

43%

17%

49%

Per capita tax revenue ($USD)

$ 517.90 7th $ 726.20 $ 1,162.90 $ 1,662.80 $ 1,241.10 $ 3,173.80 $ 1,714.70

as % of LG revenue

39.8% 3rd 14.6%

30.0%

34.7%

50.8%

59.2%

38.3%

% of revenue not grants or tax

29% 1st

22%

17%

16%

6%

24%

13%

Share of national tax revenue

3.50% 7th 4.90%

7.50% 13.20% 14.20% 21.30%

11.80%

Per capita LG CapEx ($USD)

$ 467.10 5th $ 563.00 $ 433.40 $ 656.10 $ 255.30 $ 851.90 $ 759.10

LG CapEx as % of LG expenditure

36% 1st

11%

11%

14%

10%

16%

17%

Share of national CapEx

19.9% 6th 24.4%

22.8%

29.6%

14.3%

23.0%

34.4%

Source: MAV, data source: OECD Subnational Government Finance

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BENEFITS OF FINANCIALLY SUSTAINABLE COUNCILS

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Investing in

communities

Councils are the most connected level of

government to their communities. They are

constantly receiving local feedback, whether

at the front desk, through engagement with

elected representatives, at council meetings,

or in formal consultation processes.

This means they are able to identify and

respond to the needs of individual

communities within their municipal area

much faster than state or federal

governments can hope to.

This can take the form of responding to

acute or widespread disadvantage, or in

addressing significant divides within the

municipality.

Ideally these issues can be pre-empted and

not reach a boiling point. Multicultural

festivals and events held by councils are not

just about bringing diverse communities

together, but also and bridging gaps in

understanding and building socially

cohesive society.

Providers of last

resort

Many communities rely on services that are

simply not commercially viable for private

operators to offer, or at least not at a price

communities can afford.

In some cases, legislation requires councils

to act as a potential alternative to

commercial operators.

The Victorian building regulatory system

was privatised in the early 1990s. Statewide

over 90% of building permits are now issued

by private building certifiers. In parts of rural

Victoria however council is the only or one

of very few issuers of building permits.

Without providing this function residents

would be unable to undertake all but the

most minor of building works.

Where they have the capacity to do so,

some councils step into this gap and offer

the service directly, or support providers to

deliver it.

A number of councils operate childcare to

ensure their community has access to a

high quality and affordable service that the

market had otherwise failed to deliver.

Unless they have a solid baseline of

financial stability councils don’t have the

capacity to take on these roles.

BENEFITS OF FINANCIALLY SUSTAINABLE COUNCILS

Investing in community capacity

Through targeted investment councils can improve

engagement and resilience within their communities

Since 2009, the Brimbank Community Capacity Building

Program has aimed to enhance governance and leadership

skills among community members who work with and on behalf

of their community. This long-running initiative includes three

distinct streams designed to foster community resilience,

participation, and empowerment.

The Brimbank Community Governance Training Program offers

one-off training sessions to community groups within Brimbank,

focusing on the governance and management of their

organisations. The Brimbank Community Leadership Program

provides a series of training to individuals, enhancing their

leadership skills and capacity. Additionally, the Brimbank

Leadership Alumni network connects participants who have

completed the leadership program and attended multiple

governance training sessions, allowing them to stay engaged

and contribute to council activities.

To date, the program has trained over 600 community

members. An evaluation conducted in 2023 revealed that the

program effectively achieves its goals. Participants reported that

the program improves community resilience by enhancing

knowledge and connections, fostering increased community

participation, and positively influencing engagement with

council tools and initiatives. The findings indicated that the

program has significantly improved participants' skills,

knowledge, and self-confidence.

The impact of the program on the Brimbank community has

been overwhelmingly positive, with sustained increases in

engagement, skills, resilience, and empowerment among

participants. By investing in the capacity of its community

members, Brimbank Council has successfully fostered a more

resilient, engaged, and capable community, demonstrating

the long-term benefits of targeted capacity-building

initiatives.

BRIMBANK

METROPOLITAN

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Stability

Having a strong financial base means

councils are able to step in and help absorb

the impacts of significant shocks for their

community.

During the worst periods of the COVID-19

pandemic every Victorian council dedicated

extensive resources to supporting their

communities.

Support to businesses included direct

support packages and rate relief, fast

tracked applications for approvals, liaison

and mentoring programs, professional

development opportunities, facilitating

collaboration and networking, and rent relief

for tenants of council facilities.

For communities councils continued vital

services such as maternal and child health

appointments, provided enhanced

assistance for vulnerable people including

establishing dedicated relief packages and

expanding the eligibility criteria for in-home

support, providing public health information,

establishing local community networks,

relaxing enforcement where public safety

was not compromised, and offering rate

waivers and deferrals.

This approach can be seen as similar to the

role taken on by Victoria in absorbing the

immediate impact of the pandemic to keep

communities and economies going.

Compared to the Victorian Government

however, councils have a very limited ability

to increase their revenue streams. This

means they had to take a more conservative

approach during the pandemic and have

fewer options available to them to pursue

budget repair.

In addition to one-in-a-hundred-year

pandemics the role of councils in supporting

their communities through shock and

disruption can be seen each year.

The governance structures, local networks,

and strategic partnerships councils have are

critical to activating relief and recovery

measures as quickly as possible following a

disaster.

After the initial response from emergency

services, councils undertake building and

environmental health risk assessments,

establish relief and recovery centres, and

provide information and leadership to

impacted communities.

Efficiency and

cooperation

State and federal governments benefit from

councils as willing and able partners with

equipment and expertise deployed across

the country.

Other levels of government will often

arrange for council to undertake functions

they would otherwise do.

Victorian councils are currently funded to

perform inspections on tobacco retailers to

ensure they are not supplying to minors.

Many Victorian councils also perform

maintenance on state road assets such as

vegetation management. This has been

more cost effective than the state having to

deploy its own resources across the entire

network.

Unfortunately, funding agreements have

become so out of date that they no longer

reflect the cost to council of undertaking this

maintenance. As a result councils are

considering whether they can justify

continuing to do this at the expense of other

priorities. Several councils have already

ceased this maintenance.

BENEFITS OF FINANCIALLY SUSTAINABLE COUNCILS

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Attachment 13.2.3

Continuous

improvement

Continuous improvement is vital for

councils, and any organisation, to maintain a

high level of performance.

Unfortunately when budgets are under

pressure it can be extremely difficult for

councils to dedicate resources to continuous

improvement over more immediate

community-facing priorities such as service

delivery and infrastructure management.

Many aspects of continuous improvement

have a positive feedback loop, improving the

sustainability of councils. Thus the councils

that would benefit the most from it are often

the ones least able to undertake it without

support from other levels of government.

Where councils can undertake continuous

improvement practices it can take many

different forms.

Many Victorian councils have leant into

improving digital systems. This has been

significantly aided by programs such as the

Victorian Government’s Rural Council

Transformation Program.

Other areas include professional

development, collaboration with other

councils and external partners, improved

risk management, and forward service

planning.

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Delivering on

shared priorities

In addition to assisting State and Federal

operations, the functions of local

government are critical to delivering on the

priorities of other levels of government.

Victorian councils manage 87 per cent of

Victoria’s road network, representing not

only the roads many travel on in and around

their communities but the first and last mile

for longer trips such as interstate and

intermodal freight.

Early years education in Victoria couldn’t

exist without council facilities, often leased

to service providers at peppercorn rates.

Councils invest heavily into climate change

initiatives, both mitigation and adaptation.

They ensure their own buildings and

services are efficient as well as supporting

their communities to do the same.

Councils are taking on an increasing role in

funding library services that support lifelong

learning, digital literacy, and skill

development.

Councils also engage heavily with individual

communities to promote social cohesion

across Victoria.

BENEFITS OF FINANCIALLY SUSTAINABLE COUNCILS

Collaborative ERP Renewal and

Cloud Records Project

State funding allows councils to achieve long-term benefits

through investing in systems

Northern Grampians, Southern Grampians, and Queenscliffe

councils have recently completed the initial implementation of

two collaborative projects funded by the Rural Councils

Transformation Program: Enterprise Resource Planning (ERP)

renewal and Cloud Records (With West Wimmera also joining

the second project). These projects are designed to enhance

digital infrastructure and streamline business processes across

the participating councils. The ERP renewal project saw three

councils jointly procure and implement a suite of "Best of Breed"

software to replace their outdated ERP systems. This

collaboration enabled cost savings, standardised business

processes, and laid the foundation for potential service sharing

and joint recruitment in the future.

Simultaneously, four councils worked together on the Cloud

Records Project, transitioning from old records management

systems to MS365 SharePoint. Staff now use MS Teams as their

primary workspace, with AvePoint managing records compliance

in the background. This new approach ensures high compliance

with minimal user intervention by implementing in-place records

management. These projects highlight how State Government

funding supports small rural councils, allowing them to achieve

outcomes that would be difficult independently.

As the councils move into Phase 2, they are focused on building

training resources and developing standardised policies and

procedures to maximise the efficient use of new systems. This

ongoing collaboration fosters continuous improvement, with

staff from the participating councils supporting each other and

sharing best practices. The ERP renewal and Cloud Records

projects exemplify the significant benefits of collaborative, state

funded initiatives in modernising digital infrastructure and

setting the stage for future cooperation and efficiency in

small rural councils.

SOUTHERN GRAMPIANS,

NORTHERN GRAMPIANS,

QUEENSCLIFFE & WEST WIMMERA

SMALL AND LARGE SHIRES

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Attachment 13.2.3

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Organised sport

Community participation in sport is heavily

dependent on councils. Over half the tennis

courts, football grounds, soccer pitches, and

swimming pools in Victoria are owned by

council.

Councils also provide support to local

sporting groups through operating grants

and individuals and families to help make

participation more affordable for the whole

community.

Sport clubs are often the bedrock of

communities, particularly in rural areas. A

2015 study ³ by La Trobe University

examined the benefits of community clubs

and identified a social return on investment

of $4.40 for each $1 spent on running them.

Source: MAV, data source: Sport and Recreation Victoria - Facilities List. (Note, due to gaps in facility

ownership in the source data the MAV considers these figures conservative)

GREATER

GEELONG

REGIONAL

Subsidised access to community

facilities

Council-provided subsidies promote access to facilities for

those who need it most

In February 2024, the City of Greater Geelong opened the

$65.5 million Northern Aquatic Community Hub (NACH) in

the northern suburbs of Norlane and Corio. These areas,

identified by the SEIFA index as among the most disadvantaged

in Victoria, have greatly benefited from this new facility. The

NACH aims to remove financial barriers to participation

through various subsidised initiatives, making it accessible to

the local community.

Key initiatives include off-peak concession memberships priced

at 50% off the full fee, which provide complete access to the

facility, including reformer pilates. Additionally, a $50,000

small grant initiative will be launched in FY25 to offer free

access for those unable to afford it, such as one term of

swimming lessons. Memberships now also include small group

training at no extra cost, and 60 participants per year can take

advantage of funded learn-to-swim programs, courtesy of a

commercial partner. Ongoing initiatives offer further discounts

for concession holders, older adults, families, and corporate

members.

These programs are primarily funded by the City of Greater

Geelong, with the learn-to-swim program supported by a

commercial partner. The council's commitment to subsidising

access to the NACH ensures that residents of Norlane and

Corio can benefit from the health and wellness opportunities

provided by the new aquatic centre, helping to address the

area's significant socioeconomic challenges. This approach

highlights the role of local government in promoting

community well-being and social equity through targeted

support and access to essential services.

BENEFITS OF FINANCIALLY SUSTAINABLE COUNCILS

Sports heavily dependent on local government-owned facilities in Victoria

# owned by local government

*

% of total *

Soccer pitches

539

71%

Basketball courts

316

62%

Skate parks

93

58%

Swimming pools

301

58%

Australian rules football grounds

727

58%

BMX tracks

70

57%

Tennis courts

2908

50%

Netball courts

823

48%

Hockey pitches

49

42%

Local clubs support local businesses and

create direct employment opportunities in

the community.

Other benefits include improved social

connectedness, mental and physical health,

building networks to improve resilience and

access to employment opportunities, and

gaining skills that can be used in people’s

personal and professional life.

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Open space

In addition to organised sport, council land

forms the backbone of our public open

space networks.

Within metropolitan Melbourne

(encompassing metropolitan and interface

councils), councils own 68 per cent of the

parks, gardens, and organised recreation

facilities by area, amounting to 16,400

hectares.

Across eight municipalities councils own

over 90 per cent of this critical public space,

Melbourne’s open space network. Council owned land highlighted in red and other public open space in

blue. Source: MAV, data source: Victorian Planning Authority - Metropolitan Open Space Network

between 80-90 per cent in another nine, and

over half in all but six of the 31 councils that

make up Melbourne.

The physical and mental health benefits of

open space are well documented. In

addition to providing a venue for physical

activity, natural environments reduce stress,

anxiety and depression.

Public open spaces also act as communal

gathering spots. They provide a space for

organised events such as concerts and

festivals, as well as informal gatherings that

promote casual interactions among the

community.

Environmentally, the open space network

promotes biodiversity. Of particular

importance are biodiversity corridors which

link habitats that would otherwise be

isolated and potentially unviable due to

urban development.

Improving air quality for residents is a

significant benefit, particularly in urban

environments.

The benefits of open space will also become

more pronounced as the impacts of climate

change become more severe.

Green spaces counteract the urban heat

island effect. They can also be utilised as

part of flood mitigation by managing

stormwater surges during flood events.

Open space does not generate significant

revenue. Even for organised sport, councils

will generally charge a low fee for

community clubs.

Management of the open space network

requires councils that can afford to fund it

out of general revenue in recognition of the

significant benefits it provides.

BENEFITS OF FINANCIALLY SUSTAINABLE COUNCILS

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Attachment 13.2.3

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17

Financial

insecurity

By contrast, when councils don’t have

financial security there are significant

impacts to local communities.

Victorian legislation requires councils to

ensure their ongoing financial viability. A

deteriorating financial position means

councils are forced to make difficult

decisions about the scope and scale of

services they provide to their community.

A study conducted by AEC Group on behalf

of the Australian Local Government

Association identified specific functions as

particularly at risk where finances become a

problem ¹:

• Response to climate change

• Provision of recreation and open

space activities

• Provision of community events and

festivals

• Library and educational services

• Equitable access to services

• Public safety

• Promoting public health

• Additional support for at-risk

populations

• Protecting communities from natural

disasters

• Road maintenance

• Footpaths and cyclepaths

• Stormwater drainage

There are recent examples of councils

having to reassess service delivery due to

their financial position.

The Victorian Government’s Program for

Refugee Immunisation, Monitoring and

Education (PRIME) was a program aimed at

improving immunisation rates in asylum

seeker and refugee communities. In some

communities vaccination rates more than

tripled under the program.

Despite its success, when the state program

ceased participating councils were unable to

continue this initiative due to the cost.

In the aged care space, many Victorian

councils have announced they will leave the

direct provision of in-home services. They

will instead move to supporting residents to

find and transition to an appropriate

alternative service provider.

Changes to federal aged care funding

models have increased client choice, but at

the expense of the ability of councils to plan

services. Many councils felt they were not in

a financially strong enough position to take

on the risk of uncertainty over funding.

As costs increase faster than revenue more

councils will be closely examining their

budgets to identify what functions they can

no longer justify.

GREATER

DANDENONG

METROPOLITAN

Deteriorating financial

sustainability

Councils face increasing costs and significant limitations on

their ability to raise revenue

The City of Greater Dandenong (CGD) is one of the most

diverse multicultural communities in Australia. CGD is currently

confronted with substantial medium to long-term financial

sustainability challenges. These arise from several factors

including rate capping policies that don’t reflect increased

costs, shifting of responsibilities to council, and the level of

hardship experienced by the local community.

For 2024/25 the Victorian Government has set a rate cap of

2.75%. By contrast CGD has experienced cost increases over

20% for building construction, playground materials, tree

maintenance services, and other maintenance services. Despite

internal staff remuneration being pegged to the rate cap,

overall employee costs will rise above this due to the increase

in the Superannuation Guarantee.

In addition to this council finds itself taking responsibility to

deliver functions that were previously undertaken by other

levels of government, or where service agreements have

become divorced from the cost of delivery such as council

undertaking maintenance works on state road assets.

Even absent of external impositions on revenue and

expenditure, CGD carefully considers the ability of its

community to bear additional cost burdens. Greater

Dandenong has high levels of severe disadvantage, poverty,

homelessness, and unemployment. The ability to find

additional revenue through either rates or user pays systems is

extremely limited. These communities also rely heavily on

council services, and any reduction to services would have

severe impacts on both an individual and societal level.

BENEFITS OF FINANCIALLY SUSTAINABLE COUNCILS

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Attachment 13.2.3

FUNDING INFRASTRUCTURE AND SERVICES

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Attachment 13.2.3

0.95 1

1.05 1.1

1.15 1.2

1.25 1.3

1.35 1.4

Growth in LGCI and components - indexed to June 2016

Employee Expenses

Other expenses

Capital expenses

LGCI

Rate Cap (cumulative)

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19

LG Cost Index

Since 2016 Victorian councils have been

subject to a State imposed cap on growth in

rate revenue. This has exacerbated the

challenges councils face in funding the

services and infrastructure their

communities rely on.

It also stands in stark contrast to the

revenue growth other levels of government

afford themselves. Since 2016 the tax

revenue of Victorian councils has risen 23%

in total, compared to a 53% rise in tax

receipts for the Victorian Government and

59% for the Commonwealth

The rate cap is set based on Department of

Treasury and Finance forecast for CPI. CPI

is not an accurate reflection of the costs

facing councils, and Treasury projections of

CPI even less so.

To address this, the MAV has developed a

cost index for Victorian local government

based on methodologies in use in other

jurisdictions.

Using this we estimate that since the

introduction of the rate cap it has reflected

just 60% of the cost increases facing

councils.

Our cost index adopts a relatively simple

approach of three components - wages,

infrastructure, and other.

We have experimented with more complex

indices involving upwards of 20 different

components such as gas and printing costs.

We found that any difference in the output

did not warrant the increased complexity.

Employee costs contribute 40% to the cost

index. We use increases in the Local

Government Industry Award, as well as

incorporating increases to the

Superannuation Guarantee. While each

Victorian council has negotiated an EBA

with its workforce, the award still represents

a good statewide basis and is the

comparison point for Better Off Overall Tests

in negotiations.

Infrastructure costs are set at 30% and use

the Road and Bridge Construction Index for

Victoria published by the Australian Bureau

of Statistics. The MAV believes this index

may be somewhat conservative compared

to the costs being experienced on the

ground by councils. However, it still stands

as the best option for a broadly available

and trusted figure.

Finally we use the CPI for Melbourne for the

remaining 30% to account for all other costs.

Using a methodology recently adopted by

NSW’s Independent Pricing and Regulatory

Tribunal ⁵ we can also provide estimates for

future growth in the index based on RBA

economic forecasts.

Currently we predict the LGCI will increase a

further 3.12% in 2024-25 and 2.64% in

2025-26.

For context the Victorian Government has

set the rate cap for 2024-25 at 2.75%.

FUNDING INFRASTRUCTURE AND SERVICES

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Attachment 13.2.3

20

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Infrastructure

delivery

Infrastructure Australia ⁶ projects that the

supply of labour to build infrastructure won’t

meet demand until the end of 2027. The

biggest labour deficits are among labourers

and structural and civil engineers.

The data is based only on announced

projects. With years of state, territory, and

federal budgets between now and then we

would expect demand to have increased

significantly by the time 2027 arrives and for

a substantial deficit to remain, as no

significant increase in workforce is

projected.

For councils, delivering and managing

infrastructure is a large part of their role.

These labour shortages affect them

significantly. Costs to deliver infrastructure

have risen dramatically. In addition to the

shortfall driving up prices, many councils

have been simply unable to complete

projects.

An MAV survey ⁷ of councils in late 2022

found that over 80% of respondents had

seen responses to infrastructure tenders

weaken over the preceding 12 months. This

is particularly challenging given tied grants

are often quite strict in delivery timelines.

In addition to rising costs we are seeing

councils capacity to pay for them erode. The

application of a new Windfall Gains Tax to

council land when re-zoned has impaired

the ability of councils to fund capital projects

through rationalising their asset base. For

large redevelopments such as turning a car

park into an apartment tower, the State

would take 50% of the uplift value from re

zoning with no guarantee that this would be

reinvested into local infrastructure.

Build-to-rent developments avoid

subdivision which is the statutory trigger for

some infrastructure contributions. Incentives

for build-to-rent will have the (we believe)

unintended consequence of leaving councils

without the means to provide the

infrastructure new residents need.

FUNDING INFRASTRUCTURE AND SERVICES

Source: Infrastructure Australia - Public Infrastructure Workforce Supply Dashboard

government on how to ensure Victoria

prospers into the future.

PORT PHILLIP

METROPOLITAN

Impact of build-to-rent reforms on

development contributions

Well-meaning reforms have unintended consequences for

infrastructure provision

The State Government's incentives for build-to-rent

developments, such as a 50% reduction in land tax, aim to

create new affordable housing complexes with below-market

rentals. However, these developments do not involve the

subdivision of property, meaning they do not trigger enliven the

statutory trigger which allows councils to levy development

contributions for open space.

Open space contributions are essential for Port Phillip City

Council (PPCC), providing around $4-5 million annually to

improve and expand public open spaces as the population

grows. However, five recent build-to-rent developments in the

Fishermans Bend area did not require these contributions,

resulting in a loss of approximately $4.9 million in revenue.

This shortfall equates to the funding needed for two municipal

park upgrades, highlighting the financial impact on PPCC’s

ability to enhance community infrastructure.

The loss of open space contribution revenue necessitates

adjustments to PPCC’s financial plan. More funds from

general rates will need to be allocated towards open space

projects, reducing the budget for other services. Additionally,

the PPCC anticipates lower general rates income from build

to-rent properties, estimated to be 10-15% less than traditional

developments. This is because these properties are valued

based on rental return rather than the Capital Improved

Valuation typically applied to subdivided properties.

Overall, while the build-to-rent reforms promote affordable

housing, they pose significant challenges for councils which

have not been adequately addressed. They hinder local

government’s ability to provide the necessary infrastructure to

support the very communities being established.

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Attachment 13.2.3

Circular

economy

Communities expect local government to

play a key role in the circular economy and

to maximise the amount of material being

reused, recovered, and recycled.

Unfortunately, once something hits the bin is

the worst time to start thinking about

sustainability. Councils have very limited

capacity to influence upstream change. The

expectation for councils to solve our waste

problems is akin to buying the best bucket

possible to sit under a leaking roof.

Federal, and to some extent state,

government have far greater levers to

address change.

Mandatory product stewardship enacted

through state or federal legislation has the

ability to require manufacturers and

importers of goods to have responsibility for

the end-of-lifecycle impacts of products.

This creates incentives to design products to

be robust, reusable, and recyclable.

It also ensures a price signal is sent to

consumers, influencing them to make

decisions that avoid waste.

Dealing with the waste-creating decisions of

product supply chains comes at a huge cost

to councils. In 2022-23, 43 of Victoria’s 79

councils spent over 10% of their total

budgets on waste management. In addition

to the environmental benefits of a circular

economy, it would free up funds for other

vital services and infrastructure.

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21

Climate impacts

Victorian councils face an array of

challenges due to climate change,

significantly impacting their operations and

planning.

One of the most obvious challenges is the

increasing frequency and severity of

extreme weather events, such as bushfires,

floods. These events strain emergency

response systems, necessitate costly

infrastructure repairs, and disrupt

community services.

Another major challenge is coastal erosion

and rising sea levels, which threaten coastal

communities and infrastructure. Councils will

need to manage the protection and

relocation of assets and potentially even

communities.

Climate change also poses challenges for

public health, with increased heatwaves

leading to higher incidences of heat-related

illnesses, particularly among vulnerable

populations such as the elderly and those

with pre-existing health conditions. Councils

will increasingly need to enhance public

health services, establish cooling centres,

and green their existing public infrastructure.

Furthermore, climate change impacts

biodiversity and natural ecosystems, many

species are already facing extinction,

requiring local governments to develop and

implement conservation strategies to protect

local flora and fauna. This often involves

restoring habitats, managing invasive

species, and promoting biodiversity-friendly

practices among local communities.

FUNDING INFRASTRUCTURE AND SERVICES

Flood insurance challenges

Cost of insuring against climate change becomes harder and

harder on an individual council basis

Since October 2022, Greater Shepparton City Council

(GSCC) has faced significant challenges with its flood

insurance, as premiums surged by approximately 25% in one

year, while coverage for flood damage plummeted from $20

million to $2 million. The estimated final cost of insurance

claims for 2022 is around $15 million, excluding business

losses for key facilities such as the aquatic centre and

performing arts centre. These figures highlight the long-term

sustainability issues for civic infrastructure in a flood-prone

area.

Climate science indicates that extreme weather and natural

disasters will become more intense and unpredictable. In May

2022, the Climate Council of Australia identified the electorate

of Nicholls, encompassing Greater Shepparton, as one of five

exceptionally vulnerable localities. This underscores the urgent

need for enhanced flood resilience and sustainable community

planning.

The substantial reduction in flood coverage and rising

insurance costs present a severe challenge to GSCC. The

council must navigate these financial strains while striving to

protect and maintain its infrastructure and supporting the

community at large who find their homes and businesses

increasingly at risk. These insurance challenges emphasize the

broader issue of climate resilience, particularly for communities

prone to natural disasters.

These challenges are exacerbated by policy decisions at state

and commonwealth levels within the Disaster Recovery Funding

Arrangements (DRFA). In Victoria DRFA funding can only be

used to restore assets to the state they were in immediately

prior to being damaged. At a Commonwealth level, the DRFA

takes a narrow view of what constitutes essential public

assets and thus what is eligible for funding.

GREATER

SHEPPARTON

REGIONAL CITY

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Attachment 13.2.3

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Population

growth

Official Victorian Government projections

suggest Metropolitan Melbourne’s

population will increase from 2021 to 2051

by over 3 million, to reach 8 million people

total. Regional Victoria’s population is

projected to grow by 646,000 to 2.28 million.

We can see from the local government area

projections that are available to 2036 that

this growth will not be evenly spread. The

government has had a longstanding

ambition to accommodate 70% of population

growth within established areas rather than

in new greenfield development.

Major investment will need to go into new

areas to accommodate population growth

putting even greater pressure on council

finances and infrastructure delivery

pipelines. Cost won’t be the only barrier,

space will become scarcer and scarcer.

Service delivery will also need to adjust.

Already services like kerbside collections

are more challenging in denser areas.

Areas of western Victoria where population

is projected to decline or stagnate will face

perhaps even bigger challenges. Small

towns with decreasing and aging

populations will face questions of their

viability. In addition to the cost of servicing

small dispersed populations and a declining

revenue base, there is a threshold at which

the social fabric can no longer renew.

The MAV has released two discussion

papers addressing these and other

concerns - Shaping Metropolitan Melbourne

⁸ and Shaping Regional and Rural Victoria ⁹.

These are intended as the start of a

conversation between councils,

communities, and other levels of

FUNDING INFRASTRUCTURE AND SERVICES

Source: MAV, data source: Department of Transport and Planning - Victoria in Future

Projected population growth from 2021-2036 for Victorian Local Government Areas

50%+ 25 to 50%

10 to 25%

5 to 10%

+/- 5% -5 to -10%

MORNINGTON

PENINSULA

INTERFACE

Managing coastal land in a

changing climate

Council bears an increasing and unsustainable cost to

maintain assets that benefit many Victorians

Mornington Peninsula is host to 192km of coastline - 10% of

Victoria’s total. Mornington Peninsula Shire Council is

responsible for the maintenance and management of around

one third of this.

Each year around 8 million people visit the Peninsula to enjoy

its unique coastal environment, villages, and hinterlands.

MPSC currently spends more than $8m per annum

maintaining infrastructure on the foreshore and keeping

beaches clean, safe, and accessible. These costs are rising with

increased patronage and the impacts of climate change.

Extreme weather events and changed conditions due to

development are increasing the severity and frequency of

erosion events and landslips. Council has had to close one

historic path for safety reasons, with an options report costing

$85,000 and design $100,000 budgeted for the start of

design work. Early estimates are that the cost of works could

be up to $4m.

The scale of these costs are already beyond the capacity of

individual communities and councils to fund, and they will only

increase. It highlights the need to address climate change

impacts at a strategic level. This must include either

undertaking or funding councils to undertake proactive work to

improve resilience, rather than merely responding to damage

after it occurs.

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Attachment 13.2.3

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23

Funding

alternatives

With these pressures on finances and the

delivery of services and infrastructure, the

idea of finding alternative sources of

revenue and funding is an attractive one for

local government.

Some options can be done largely under a

councils own initiative, while others will

require approval in some form from the state

government.

Not every option will be viable for every

council. In a 2022 report for Rural Councils

Victoria ¹⁰, SGS Economics and Planning

found that while boutique revenue streams

could be found, meaningful improvements to

council finances need to come from revenue

sharing from other levels of government.

Changes to developer contributions through

the planning system have numerous

benefits. They are hard to avoid and they tie

revenue to densification and thus increased

demand for infrastructure. Once established

they also act by reducing the residual land

value - effectively being paid by those

selling land through a reduction in sale value

rather than an increased price for those

buying new homes. However, like all

planning scheme changes, they must

ultimately be signed off by the Minister for

Planning.

There are benefits rationalising asset

inventories. Maintenance costs can be

reduced, a one-off injection of funds from

the sale achieved, and once developed to a

higher yield use the land will contribute more

to the local economy and the rate base.

Councils looking at this to fund capital

expenditure have been hindered by the

imposition of the Victorian Government’s

windfall gains tax, which would see the

State take 50% of the uplift value from any

re-zoning.

Other avenues include public private

partnerships to deliver infrastructure or

developing services commercially to provide

either to the public or other councils.

There may also be scope to increase

revenue from the use of council services

and facilities, however this cost is borne

directly by community so should be weighed

against the social benefits of subsidised or

at-cost offerings.

FUNDING INFRASTRUCTURE AND SERVICES

Public-Private Partnership for

community facilities

Council partners with a service provider to address

longstanding infrastructure issues and revitalise community

assets.

Moonee Valley City Council (MVCC) has entered into a public

private partnership (PPP) with BlueFit, a leisure facility

management company to redevelop Riverside Golf and Sports

Centre.

The Riverside Sport and Recreation Precinct Plan was

developed by MVCC in consultation with the local community.

Principles were developed that the precinct be safe, multi-use

and community focused, green and climate resilient,

connected and accessible, and functional and high amenity.

The current precinct has significant problems. In addition to

wear and tear and capacity, the placing of the golf driving

range and the netball and tennis courts mean that they can’t

be used simultaneously without risk to the public. The new

development will address these issues, provide playgrounds

and active spaces, improved access and pathways as well as

potential hospitality uses.

The PPP is underpinned by a 20-year management contract,

allowing council to oversee the operations and ensure that

community needs are met. It will see most of the capital

investment provided by BlueFit.

PPPs won’t be suitable in all circumstances. However, where a

community-led vision has been developed, and there are

partners able to deliver upon them, a PPP can help council

capital budgets go further in delivering on infrastructure needs.

MOONEE VALLEY

METROPOLITAN

Rates and Charges

Grants

Statutory Fees

and Fines

User fees

Development

contributions

Other revenue

Metropolitan

63%

14%

6%

9%

4%

4%

Interface

43%

14%

3%

5%

32%

3%

Regional Cities

48%

22%

2%

10%

13%

4%

Large Shire

47%

31%

2%

7%

9%

5%

Small Shire

42%

46%

1%

5%

2%

5%

Source: MAV, data source: VAGO audited financial statements of Victorian councils

Sources of revenue for Victorian councils - 2022/23

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Attachment 13.2.3

WORKFORCE CHALLENGES AND OPPORTUNITIES

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25

Councils as

Employers

One of the major contributions councils

make to local communities is their role as an

employer.

Councils provide stable and high-quality

jobs to local residents. In many areas they

are one of the largest employers in a

community.

Councils have been criticised for being top

heavy with unnecessary layers of

management. This is incorrect, councils

have a smaller proportion of management in

their workforce than the private sector.

When examining the distribution of wage

brackets, again comparing to the private

sector, councils have fewer people on low

wages, fewer people on the highest wages,

and more in the middle.

Councils also help address gender equity in

the workplace, both through paying women

well and in supporting mechanisms.

Councils offer flexible work arrangements to

ensure that parents can continue

contributing in the workplace in a way that

fits their circumstances.

In 2010 Surf Coast Shire Council

implemented what we understand were

globally the first paid leave provisions for

workers experiencing family violence. This

has since become a legal right for all

Australian employees, whether full-time,

part-time, or casual.

In many professions local government also

helps train up the bulk of the workforce,

whether they stay in the public sector or go

to private industry.

The majority of town planners and building

inspectors for example, get their first

opportunity in local government.

Local government, through cadetships,

apprenticeships, and work placements, can

be a great place to develop a career, It can

also be a place that helps people get back

into the workforce after long-term absence.

Local government wages flow into economic

activity in local communities.

In examining the rate cap in Victoria, the

Centre for Future Work ¹¹ estimated that

more than 20,000 indirect jobs are created

by local government activity (through

downstream consumption and upstream

supply chain impacts). This is in addition to

the 50,000 people directly employed by

councils.

When looking at the impact constrained

local government revenue has had (in this

case the rate cap), they state this may have

cost over 7,000 jobs (direct and indirect) and

reduced GDP by up to $890 million.

WORKFORCE CHALLENGES AND OPPORTUNITIES

Source: MAV, data source: ABS 2021 Census TableBuilder

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Skills shortages

Victorian local governments face significant

challenges in attracting and retaining

workforce, particularly across several key

skill areas.

The 2022 Australian Local Government

Workforce Skills and Capability Survey ¹²

found that three quarters of responding

Victorian councils said workforce capacity

and capability issues impacted project

delivery.

Building surveyors, maternal and child

health nurses, planners and engineers were

cited as the hardest roles for councils to fill.

There have also been longstanding

challenges to recruit environmental health

officers, and councils expect waste

management and recycling staff to become

a critical shortage in the future.

One of the primary issues is the lack of

affordable housing. Many rural communities

have limited housing options, making it

difficult for potential employees to find

suitable accommodation. Without affordable

housing, even those interested in working in

rural settings may be forced to seek

employment elsewhere, where housing is

more accessible. This is exacerbated by

poor access to transport options within an

area.

Skills shortages can also become self

perpetuating. Where councils are

understaffed each employee will carry a

greater workload. This can lead to burnout

and the employee leaving for another

employer.

Councils expect skills shortages to become

worse. Demand for workers will increase

due to external factors such as reforms by

other levels of government, changing

demographics, and climate change. Meeting

the workforce demands of the expansion of

early years education in particular will be

challenging for many councils.

Across some professions, and in rural

councils more generally, an aging workforce

profile adds additional challenges. As

experienced workers reach retirement age

we will lose the opportunity to mentor the

next generation and retain institutional and

professional knowledge.

In some cases the problem is not merely the

ability of councils to attract the workforce,

but the existence of a sufficient workforce at

all. In Victoria demand for building surveyors

far exceeds the current workforce across

both the public and private sector. In those

cases the solutions need considerable

involvement from state and federal

governments, as well as other partners such

as the tertiary education sector.

WANGARATTA

REGIONAL CITY

Challenges of an aging regional

workforce

Structural challenges require innovative approaches to

recruitment and retention, as well as outsourcing key services

Wangaratta Rural City Council (WRCC) faces significant

workforce challenges, particularly in recruiting and retaining

skilled personnel for critical service areas such as

environmental health officers and arborists. These positions are

essential for service delivery, yet attracting qualified individuals

is difficult due to the constraints of service delivery budgets.

WRCC’s doesn’t have the size for career-building programs or

scholarships to develop these skills internally. Teams do not

exist at a scale large enough to support this, turnover is

relatively low, and career progression pathways are limited. As

a result, larger councils or private sector employment

opportunities can be more attractive employers. Housing

shortages further exacerbate recruitment difficulties.

In response WRCC has had to outsource to ensure service

delivery can continue without interruption. WRCC has also

implemented bespoke recruitment efforts, including referral

services, sign-on bonuses, above-band salary offers, and

relocation support. Application processes have been tailored

to match the technology capabilities likely applicants.

Moreover, Wangaratta's workforce is aging at a materially

higher rate than the average Australian workforce, adding

further complexity to the recruitment and retention challenges.

The Council's proactive measures aim to mitigate these issues,

but the combination of regional disadvantages and an aging

workforce continues to present significant hurdles.

Through these efforts, Wangaratta Council strives to maintain

service quality and continuity while navigating the difficulties

inherent in regional workforce management. The situation

underscores the need for innovative solutions and support to

ensure the sustainability of critical services in rural areas.

WORKFORCE CHALLENGES AND OPPORTUNITIES

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WORKFORCE CHALLENGES AND OPPORTUNITIES

Early years workforce challenges

Council faces an acute workforce pressure and is able to

deploy resources in a targeted and pro-active response

The City of Yarra is facing significant challenges in meeting the

growing demand for early childhood education and care. With

projections indicating that demand for places will exceed

current capacity, and an increasing number of job vacancies

across Victoria, the situation is becoming critical.

Inner Melbourne, which includes Yarra, experienced notable

employment changes in the five years preceding August 2022.

There was a 23% reduction in the employment of educators,

compared to a 9% reduction nationally. Early childhood

teachers saw a 15% reduction, contrary to a 19% national

increase. Interestingly, there was a 50% increase in Childcare

Centre Managers, against a 15% national reduction. This

disparity reflects the unique challenges faced by the area.

Yarra Council has consistently struggled with a vacancy rate of

at least 20% in early childhood educator roles over recent

years. This shortage, coupled with rising demand for services,

has placed immense strain on existing staff and services. The

usual attraction and retention strategies have proven

insufficient to address these workforce issues.

In response, Yarra Council has developed a detailed action

plan aimed at mitigating these workforce challenges. The plan

includes measures for attracting, retaining, and developing

early childhood educators. By focusing on innovative solutions

and comprehensive support systems, the council aims to

stabilise the workforce and ensure that quality early childhood

education remains accessible to all families within the

municipality.

This proactive approach highlights the council's commitment to

addressing the workforce challenges in early childhood

education, ensuring that the growing demand for services

can be met effectively despite the current staffing shortages.

YARRA

METROPOLITAN

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Attachment 13.2.3

LOCAL GOVERNMENT LEADING THE WAY

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This section seeks to highlight proactive

work being undertaken by Victorian councils

to address financial sustainability and other

challenges.

Councils are not merely sitting back calling

for other levels of government to solve their

problems. They are actively pursuing

innovation and solutions. These case

studies document the benefits of councils

having the financial room to innovate. In

many cases the first mover will be the most

expensive and learnings can be applied

relatively cheaply across councils and other

levels of government.

In addition to specific council examples we

can look at broader responses where

councils are leaders such as climate

change.

Victorian councils have led the way on

numerous climate change initiatives from

environmentally sustainable design in the

planning system to investing in renewable

energy.

The OECD has categorised investment and

expenditure by subnational governments. By

contrast, when councils don’t have financial

security there are significant impacts to local

communities. We can see that Australian

councils are world leading in terms of

turning their operational expenditure to

climate-change significant expenditure.

YARRA

METROPOLITAN

Implementing Victoria’s first LG

Financial Sustainability Strategy

Council prioritises and delivers a forward-looking strategy for

financial sustainability

In December 2023 Yarra City Council (YCC) adopted a

Victorian-first Financial Sustainability Strategy (FSS).

The FSS identifies seven strategic levers:

• Sustainable cash reserves & responsible borrowing

• Optimise revenue

• Well planned assets

• Review the service landscape

• Invest in transformation

• Robust financial management

• Prioritise advocacy & partnerships

Since adopting the FSS these levers have already been put into

use. A framework of principles for future service planning and

review was developed through both broad and targeted

community consultation.

The first stage of engagement sought broad feedback from the

community both online and in-person to better understand

attitudes to YCC’s service offering.

After that a 50-person Community Working Group was

formed. The CWG was given information from the first stage

of engagement, as well as further details on councils’ services

and finances and examples from outside the municipality of

how councils deliver services.

YCC has already and continues to put significant effort and

resources into implementing the FSS. This work has been able

to take a higher priority than it otherwise might due to strong

recommendations from an appointed municipal monitor

regarding financial sustainability. For many councils diverting

resources away from immediate priorities to take a strategic

approach may be extremely difficult to achieve without

external funding.

LOCAL GOVERNMENT LEADING THE WAY

Source: MAV, data source: OECD Subnational Government Climate Expenditure & Subnational Government Finance and Investment

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LOCAL GOVERNMENT LEADING THE WAY

Addressing disadvantage with

locally driven responses

Local, targeted investment to address disadvantage within

communities

Brimbank, home to some of Victoria's most socio-economically

disadvantaged communities, faces significant challenges,

including low digital inclusion, poor mental well-being, and the

impacts of COVID-19. The area reports high levels of

psychological distress, anxiety, and depression, particularly

among women. Additional issues such as alcohol and drug

abuse, and widespread loneliness further compound these

challenges.

To bridge these gaps, Brimbank City Council (BCC) has

implemented several initiatives, particularly through its library

services. Libraries in Brimbank have undergone enhancements

to support equitable access to resources and technology.

Additional staff training ensures that library personnel are

equipped to assist residents in overcoming digital barriers,

providing a crucial lifeline to those with limited online access.

These measures help improve digital literacy and facilitate better

access to information and services.

Moreover, Brimbank has partnered with the Western Bulldogs

football club to deliver the "Sons and Daughters of the West"

program, a 10-week mental health initiative. This program is

designed to improve mental well-being among residents by

offering support and resources to address psychological distress.

The program includes activities that foster community

connection, reduce loneliness, and provide strategies to

manage anxiety and depression.

These efforts illustrate Brimbank's commitment to addressing

socio-economic disadvantages and promoting mental health

and well-being. By leveraging community resources and

partnerships, the council aims to create a more inclusive and

supportive environment for all residents, helping to mitigate

the long-term impacts of socio-economic disparities and

improve overall quality of life.

BRIMBANK

METROPOLITAN

CASEY, BASS COAST,

AND CARDINIA

INTERFACE AND LARGE SHIRE

Shared environmental health

services

Through a shared service model councils can ease workforce

challenges and improve the consistency and efficiency of

service delivery

In 2021, the City of Casey, Bass Coast Shire, and Cardinia

Shire councils collaborated on a shared service arrangement

for Environmental Health Services through a competitive

procurement process. A single contractor was selected, and

benefits have included enhanced service quality, consistency,

and cost reductions across the three local government areas.

This initiative is designed to welcome other councils, allowing

the benefits to be realised on a broader scale.

Environmental Health functions required to be provided by

councils include the administration and inspection of food

premises and the investigation of nuisance complaints. These

services are essential for ensuring public health and safety, with

businesses and residents being the primary beneficiaries.

Centralising contract governance has created economies of

scale for procuring sub-contractors (e.g., laboratory services)

and consumables (e.g., food sampling equipment).

The arrangement also ensures access to a stable, reliable, and

skilled Environmental Health workforce, addressing the

challenges of workforce shortages and external pressures such

as climate change and service growth. A 2023 Victorian

Auditor General’s Office audit (Regulating Food Safety)

highlighted workforce challenges and that councils were

finding it difficult to meet legislated responsibilities. The City of

Casey was positively showcased in the report for its initiatives

to address food safety risks, reflecting the commitment of both

the council and the contractor to meet core legislative

requirements.

The partnership fosters collaboration and consistency in

service provision, ensuring standards are uniformly high

across the participating councils.

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LOCAL GOVERNMENT LEADING THE WAY

Digital transformation across rural

shires

Working together, and supported by flexible grant programs,

rural councils utilise their diverse areas of expertise for a

shared benefit

In a groundbreaking initiative, Benalla, Mansfield, Murrindindi,

and Strathbogie Shire Councils embarked on a digital

transformation project aimed at improving operational

efficiencies and service delivery through a collaborative model.

By leveraging shared platforms and architecture, these four

councils capitalize on their collective strengths, reducing

administrative overheads and fostering a cooperative

environment that promotes efficiencies and excellence. This

$4.1 million project is supported by grants from LGV’s Rural

Council Transformation Program and the Department of

Treasury and Finance Business Acceleration Fund as well as

funding contributions from the councils.

The collaboration model is founded on a strategic partnership

where each council takes a lead role in its area of expertise.

This approach not only enhances efficiency but also uplifts the

overall performance of the group. The use of shared platforms

and architecture streamlines processes and facilitates seamless

communication across the organizations. This common

infrastructure reduces redundancy and allows for the

consolidation of resources, significantly cutting down on

project administration costs. The integration of similar

platforms paves the way for shared services, further enhancing

operational efficiency and cost-effectiveness.

The benefits realized by this project include reduced costs to

operate, improved efficiency and service delivery, and a

scalable system that can adapt to future demands.

This $4.1 million project is supported by grants from LGV’s

Rural Council Transformation Program and the Department

of Treasury and Finance Business Acceleration Fund as well

as funding contributions from the councils.

BENALLA, MANSFIELD,

MURRINDINDI & STRATHBOGIE

SMALL SHIRES

SOUTH GIPPSLAND, BAW BAW,

BASS COAST & CARDINIA

INTERFACE AND LARGE SHIRE

Establishing a multi-council not

for-profit library organisation

Councils jointly develop a forward-looking response to

changing legislative requirements

MyLi - My Community Library delivers comprehensive library

services across Baw Baw Shire, Bass Coast Shire, Cardinia

Shire, and South Gippsland Shire. As the first library service in

Victoria to become a not-for-profit organization following

changes to Victorian legislation, MyLi represents a pioneering

model for library services. South Gippsland, Bass Coast, and

Baw Baw Shire, formerly part of the West Gippsland Library

Corporation, were the founding members of MyLi, and

Cardinia has since joined the service.

MyLi operates sixteen traditional libraries, three click-and

collect locations, and services a further 21 locations through a

mobile library. Three of the fixed locations also provide 24/7

access for registered users.

MyLi remains connected to the needs of local government

through board representation from each of its member

councils. This has helped see a commitment to operating

within the revenue constraints local governments face, as the

primary funders of the service. The service also gives regular

strategic briefings to councillor groups.

The service is also delivering investment in collections well

above the state average, the opportunity to leverage funding

through scale, and growth in membership. It also promotes

broader co-operation and relationships between the

participating councils.

This innovative approach to library services demonstrates the

benefits of collaboration and shared services in enhancing

community resources and adapting to evolving needs.

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LOCAL GOVERNMENT LEADING THE WAY

Addressing barriers to

unemployment

Through its understanding of local context local government

delivers tailored interventions to address disadvantage

Brimbank faces numerous employment challenges, including

cultural barriers, gender disparity in unemployment, high youth

unemployment, limited access to transport, and a reliance on

low-skilled and low-paid jobs, which perpetuates

intergenerational inequity. To address these issues, Brimbank

City Council (BCC) collaborates with community organizations

and government agencies to provide tailored support aimed at

breaking down these barriers and promoting economic

diversification.

One of the key strategies includes offering language and

digital proficiency programs to improve employability among

residents facing language barriers. BCC also supports various

skills development programs to equip individuals with the

necessary skills to transition into higher-skilled and better-paid

employment opportunities. These programs are crucial in

fostering economic resilience and reducing dependency on

low-wage jobs.

For youth, BCC provides empowerment activities such as

micro-credential courses and mentorship programs. These

initiatives are designed to enhance the skills and confidence of

young people, making them more competitive in the job

market. By focusing on youth empowerment, the council aims

to address the high rates of youth unemployment and ensure

that young people have access to better employment

opportunities.

BCC’s comprehensive approach to addressing employment

barriers reflects its commitment to fostering a more inclusive

and equitable local economy. Through collaboration and

targeted support, the council is working to create a brighter

economic future for all its residents.

BRIMBANK

METROPOLITAN

CORANGAMITE, MOYNE &

WARRNAMBOOL

LARGE SHIRES AND REGIONAL CITY

Joint venture to improve Enterprise

Resource Planning

Supported by the Rural Councils Transformation Program,

councils implemented a major overhaul of their ERP systems

In recognition of the changing environment of technology and

the need to provide their communities with a sustainable and

high quality service, Corangamite, Moyne, and Warrnambool

councils initiated a transformative project for their business

support systems.

An unincorporated joint venture, named South West Councils

Information Communication Technology Alliance (SWCICTA)

to address this and other digital transformation priorities.

Warrnambool City Council, the largest of the three councils,

would serve as the administering body The ERP project, named

Coastal Connect, was one of the first initiatives undertaken.

Coastal Connect would uplift the entire ERP system to a

Software as a Service environment using Technology One

software.

Coastal Connect recognises the significant benefits for the

three councils and their communities in having shared systems

with common processes to support improved corporate and

customer support services. The specific expected business

outcomes include:

��

Flexible services that meet customer demands

��

Making the right investment decisions

��

Cheaper cost of doing business

��

Higher levels of engagement

��

Potential to increase partners or services

The project has been funded under the Rural Councils

Transformation Program with a grant of $4.5 million from the

Victorian Government. It is expected that overtime additional

partners would join in an expanded shared service offering.

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LOCAL GOVERNMENT LEADING THE WAY

Collaborative procurement for

immunisation services

Joint procurement leverages economies of scale and reduces

administrative burden

In 2022 Casey and Cardinia Councils undertook a

Collaborative Procurement to source Immunisation Services

from a common provider. In January 2023, A single contractor

was awarded the contract for the provision of Immunisation

Shared Services across the two municipalities.

The Public Health and Wellbeing Act 2008 places an

obligation on all councils in Victoria to "seek to protect,

improve and promote public health and wellbeing by -

coordinating and providing immunisation services to children

living or being educated within the municipal district". The

types of immunisation services provided include:

• Public Immunisation Sessions, to primarily 0-4 year olds

• Secondary School Immunisation Sessions

• Municipal Flu Vax Programs

• The provision of Immunisation Assessment and Catch-up

programs

In its first year of delivery, there have been several benefits of

this model of service delivery. Combining IT systems has meant

that only one council has needed to dedicate resources to

interfacing with the Victorian Government’s Central

Immunisation Records Victoria System.

Collectively the two councils are home to over 7.5 per cent of

Victoria’s population, with a high proportion of young families.

This collaboration offers significant economies of scale through

purchasing power, ability to run mass vaccination catch-ups,

and avoiding duplicated administration effort.

The model has also been designed to allow other councils to

join at a later date to further build on these advantages.

CASEY &

CARDINIA

INTERFACE

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Attachment 13.2.3

ROLE OF THE AUSTRALIAN GOVERNMENT

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The Australian Government has

considerable levers which it could use to

immediately improve the financial

sustainability of local government.

Our recommendations for the Committee

are as follows:

Relative to commonwealth tax receipts,

Financial Assistance Grants are at their

lowest ever level.

The Australian Local Government

Association estimates ¹ that restoring

Financial Assistance Grants to 1% of tax

receipts would support an additional 22,814

FTE of direct and indirect jobs, and increase

Gross Regional Product by 1.4 times the

investment required.

In addition to immediately addressing many

of the underlying financial challenges for

councils, this would better recognise

Financial Assistance Grants as a revenue

sharing arrangement and part of Vertical

Fiscal Imbalance and Horizontal Fiscal

Equalisation.

Too often grant programs focus on projects

which are shovel-ready with the goal of

having a ribbon-cutting ceremony within

political timeframes. This can undermine

effective asset and service planning.

For many councils, particularly in rural

areas, they don’t have the capacity to

develop business cases. effective cost

benefit analyses or long-term plans.

Providing funding for these could prove an

efficiency multiplier. Future spending would

be better tied to current and future needs

and ensure the most efficient delivery and

operation.

Finally, there are funding streams councils

have found incredibly effective that have

either been wound down or abandoned, or

could use reinvigoration.

The Local Roads and Community

Infrastructure Program (LRCI) is seen as an

extremely valuable program. Programs like

this and Roads to Recovery which offer

reasonable flexibility in the projects that can

be delivered ensure funding goes towards

real local priorities.

The restriction of later phases of the LRCI

program to rural, regional, and outer

metropolitan councils was disappointing and

does not reflect the challenges all councils

face in keeping pace with the demand for

infrastructure.

These type of multi-year programs should

also be indexed both to population and

delivery costs. Infrastructure costs have

risen significantly faster than inflation and

this risks these programs becoming less and

less effective over time.

In addition to increasing the quantum of

Financial Assistance Grants, we believe

other grant streams could be made more

productive.

One of the strengths of Financial Assistance

Grants is their untied and non-competitive

nature.

Councils don’t have to spend time applying

or acquitting Financial Assistance Grants.

They simply apply the money received to

respond to local priorities.

Particularly for smaller councils and for

smaller grant streams the administrative

burden in applying for and managing

funding represents a meaningful proportion

of the value of funds received.

Co-contribution requirements can also act

as a barrier to many councils participating in

grant streams. Perversely, they can also

divert funds away from where they are most

needed. A council may feel compelled to

apply for a grant stream to maximise funding

available, even if this means the co

contribution requirement would draw money

away from a more necessary, entirely self

funded, initiative.

Possible solutions would be to vary co

contribution requirements based on the

revenue base of a participating councils, or

to allow co-contributions to be delivered

through in-kind support. Ultimately, an

assessment should be made for each grant

program on whether the perceived benefits

of a co-contribution requirement outweigh

the barriers they place on participation.

ROLE OF THE AUSTRALIAN GOVERNMENT

1. Increase the quantum of Financial

Assistance Grants to 1% of Commonwealth

tax revenue

2. Make grants more productive by:

a. Reducing administrative burden

b. Easing co-contribution requirements

c. Allowing for more flexible timelines

d. Expanding eligible projects beyond just

shovel-ready infrastructure

e. Reinstating, restoring, or reinvigorating

funding streams like the Local Roads

and Community Infrastructure Fund.

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governments and the tertiary education

sector to attract people into these

professions.

In Victoria councils are unable to use

funding from the DRFA to improve resilience

when replacing infrastructure destroyed in a

disaster.

Councils are required to return the

infrastructure to the state it was previously

in. This seems farcical, as the state it was

previously in has just been proven incapable

of withstanding a major disaster.

Despite repeated advocacy the Victorian

Government has refused to adopt principles

of betterment into the Victorian application

of DRFA funding. Thus we call on the

Commonwealth to implement these

principles nationally and compulsorily.

Councils should be encouraged, not

prohibited, from building back better after a

disaster.

Councils are frequently left to deal with the

costs of waste while being largely unable to

influence waste-creating behaviours.

By the time materials find their way to a

kerbside bin, or are dumped in a public

place, the options to improve recoverability

and reduce waste are very limited.

All Australians would greatly benefit from

increased partnership between local

governments and the Commonwealth.

Climate change is a problem that requires a

multi-scale response from the national (and

international), down to the local.

Similarly, technology transformation can

deliver significant benefits for communities

through the services they receive from

government.

We echo calls from the Australian Local

Government Association for the

Commonwealth to be more ambitious and

confident in directly funding local

government.

Through its role in tertiary education and

migration the Commonwealth has some of

the levers necessary to address the acute

skills crises facing local government.

Councils simply can not find enough

workers to deliver critical roles such as town

planning, building regulation, maternal and

child health nursing, and environmental

health regulation.

These professions need to be prioritised

through migration and the Commonwealth

needs to partner with local and state

ROLE OF THE AUSTRALIAN GOVERNMENT

3. Partner with local government,

particularly to deliver technology

transformation and climate change

adaptation and mitigation

4. Address critical skill shortages through

tertiary education and skilled migration

pathways

5. Incorporate principles of betterment into

the Disaster Recovery Funding

Arrangements at a national level

6. Ambitiously pursue product stewardship

to incentivise reducing waste and ensure

the costs of waste are borne by those who

create it

By far the most effective waste interventions

are those that happen up the supply chain

and affect production and consumption

decisions.

Product stewardship, such as container

deposit schemes, can be extremely effective

at achieving this. A well implemented

product stewardship scheme places the

responsibility for whole-of-lifecycle impacts

of a product onto its producer. This

encourages them to address waste through

design, as well as ensures waste impacts

are included in price signals to consumers.

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ROLE OF THE AUSTRALIAN GOVERNMENT

Eligibility for JobKeeper

Failing to consult with councils makes for arbitrary and unfair

differences in program implementation

During the COVID-19 pandemic, the Federal Government

introduced the JobKeeper scheme to support organisations in

retaining staff during forced closures. However, councils that

managed their own leisure facilities, like Maroondah City

Council (MCC), were deemed ineligible for this scheme. In

contrast, councils that outsourced the management of their

leisure facilities to third-party contractors were eligible for

JobKeeper support. This discrepancy led to significant

inconsistencies and placed self-managing councils at a

considerable disadvantage. Ultimately people doing the exact

same job were deemed eligible or ineligible for JobKeeper

support based solely on whether they worked at an outsourced

or in-house managed facility.

MCC chose to retain staff during the lockdowns to maintain

the employer-employee relationship, ensuring they were ready

to resume operations once restrictions were lifted. This decision

aligned with one of the key principles of the JobKeeper policy:

to sustain employment relationships for a smooth transition

upon reopening. However, without the financial backing of

JobKeeper, MCC faced substantial financial strain.

MCC’s ineligibility meant council had to absorb the full costs

of staff wages during closures, unlike outsourced facilities that

received federal support. This situation created a financial

burden and highlighted the inequities in the support system,

disproportionately affecting councils committed to direct

management of their facilities.

Despite these challenges, MCC’s commitment to its workforce

ensured that the leisure facilities were fully staffed and ready to

operate immediately upon receiving the green light to reopen.

This experience underscores the need for more inclusive and

equitable support mechanisms in future crisis response, as

well as more general program design, to avoid significant

inequities.

MAROONDAH

METROPOLITAN

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REFERENCES

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