Delivering Sustainable Reform Fit for the Future Symposium

18 February 2015

NSW Government Priorities Modernising Government beyond March 2015

"Government will

continue to engage

with the private

sector to explore

ways it can

commission

services across the

sector"

Efficient

Service Delivery

"Government will

continue to explore

ways of digitizing

and modernising

government in

order to make

information more

directly

accessible"

Digitization of

Government

"Government will

continue to identify

ways to build

capability & better

utilise talent across

rather than within

agencies"

Developing

Capacity

The overarching imperative is to ensure the

long-term sustainability and

effectiveness of NSW local

government. In its present form and

under current policy settings the system as

a whole will not remain sustainable

and fit-for purpose for much longer.

NSW Independent Local Government Review Panel 2013

Amalgamation

Performance

Improvement

Modernising

Local

Government

So what determines

long term sustainability

Local Government Reform – Australia &

International

The good, the bad and the ugly

Onkaparinga

South Australian (1997)

Delatite Shire

Victorian (1995)

Greater Toronto

Authority

Canada (1998)

Auckland City

New Zealand

(2010)

Local Government

Reform

South Australian

(1997)

Local Government

Reform

Queensland (2007)

Elements of sustainable local government The NSW Independent Review Panel's Perspectives

NSW Independent Local Government Review Panel 2013

Healthy balance

sheet

Outcomes based

Coordinated

Devolved

decision making

Scale, resources

& strategic

capacity

Shared

resources

(regional)

Highly skilled

mayors, council

& executive

Local

Government

advocacy

Strong sense of

local identity

Mayors

recognised

leaders

Council diversity

representative of

community

Constructive

employee

relations

OPERATIONAL

SUSTABABILITY

RESOURCE

SUSTAINABILITY

COMMUNITY

SUSTAINABILITY

Modern Local Government in NSW Grant Thornton's Perspectives

Operational Sustainability

• Governance

• Planning

• Finance

• Reporting

Resource Sustainability

• Assets

• Infrastructure

• Intellectual Capital

• Human Capital & Culture

Community Sustainability

• Communities

• Residents

• Business owners

Operational Sustainability Governance - Planning - Finance - Reporting

Healthy balance

sheet Outcomes based Coordinated

Devolved

decision making

Creating a measurable benefits realization

plan supported more efficient service

delivery

Efficiencies were gained from

effective business strategies

rather than through

economies of scale

Learning from past experience

Costs blew out quickly due to poorly

coordinated service delivery and

infrastructure redesign

Operational Sustainability Governance - Planning - Finance - Reporting

Healthy balance

sheet Outcomes based Coordinated

Devolved

decision making

Focus for success

• Early appointment of a leader and

team to lead the reform

• Focusing on 'new council' rather

than 'acquisition' mindsets

• Proper, robust planning and

service redesign to create

efficiencies and improve service

delivery

Resource Sustainability Assets - Infrastructure – Intellectual Capital – Human Capital &Culture

Smaller communities

benefited from economies

of scale and sharing of

resources

75% of new council were

representatives from previous

councils

Councilors remained in

place until new Council

elected

Scale, resources

& strategic

capacity

Shared

resources

(regional)

Highly skilled

mayors, council

& executive

Local

Government

advocacy

Learning from past experience

Resource Sustainability Assets - Infrastructure – Intellectual Capital – Human Capital &Culture

Scale, resources

& strategic

capacity

Shared

resources

(regional)

Highly skilled

mayors, council

& executive

Local

Government

advocacy

Focus for success

• Clear coordination around

governance and responsibilities

• Targeted asset management to

reduce risk of funding gaps and

falling behind in infrastructure

renewal

• Consideration of alternative service

delivery models

Community Sustainability Communities – Residents – Business Owners

Poorly planned community

consultation & engagement can

have disastrous consequences

The case for change needs to

be carefully planned and

communicated

Community engagement is

critical during the reform

process

The community's identity can

be lost through the reform

process

Strong sense of

local identity

Mayors

recognised

leaders

Council diversity

representative of

community

Constructive

employee

relations

Learning from past experience

Community Sustainability Communities – Residents – Business Owners

Focus for success

Strong sense of

local identity

Mayors

recognised

leaders

Council diversity

representative of

community

Constructive

employee

relations

• Communicating benefits of change

to residents in a meaningful way

• Planning the case for change

carefully

• Tailoring the way you engage with

your community – different

Councils have different needs

• Strong community engagement

during change to retain a sense of

identity

Priorities for NSW Local Councils Fit for the future

• Clearly defined &

articulated governance

and accountabilities

framework

• A well planned &

coordinated service

delivery and reform plan

• Careful budgeting and

forecasting

• Integrated change

management and cost

benefit plan

Operational

Sustainability

• Exploring alternative ways

to deliver services

• Exploring ways to better

utilise assets across

councils and local

businesses

• Integrated & coordinated

approach to infrastructure

planning and delivery

• Focusing on retaining

your people

Resource

Sustainability

• Community engagement

through the change

• Retaining neighborhood

forums and local boards

safeguard the voice of the

community

• Activating a broader

approach of community

governance – creating 'a

community of

communities'.

Community

Sustainability