Alternative Sources of Income for LGAs: Sustainable Strategies and Findings
Discover sustainable solutions for generating alternative sources of income for Local Government Areas (LGAs), presented by Vaughan Williams. Explore the background challenges faced by rural councils, the findings from the report on alternative income sources, and the horizon for transformation. Delve into high-risk, high-yield revenue options and recommended strategies for financial security.
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Presentation Transcript
Alternative Source of Alternative Source of Income for LGAs Income for LGAs Presented by Vaughan Williams on 13-7-2023
Background Issue is sustainability Rural councils are heavily grant dependant have small rate bases over large geographic area with high value of assets per capita and little access to own source revenue.
Background RCV report on Alternative Sources of Income seeks to identify Possible options for other forms of income other than current practice The report covers Legislative framework Past research Best practice audit Alternative income sources options SGS Economics and Planning consultants Surveyed a number of Local Governments around Australia Worked with Australian Local Government specialists and International best practice opportunities
Findings No quick win cover-all solution to financial security There are a number of potential alternative revenue sources to investigate Alternatives can be considered from a risk return framework
Horizon 3: Transform Contemplates aspirational ideas VALUE & ECONOMIC COMPLEXITY Horizon 2: Enhance Look for ways to innovate, but within the scope of existing competencies Horizon 1: Consolidate Leveraging existing competencies and can be implemented relatively readily TIME OF OUTCOMES
HIGH Risk High Risk High Risk Low Yield High Yield LOW Revenue yield HIGH Low Risk Low Risk Low Yield High Yield LOW
First Horizon HIGH Not recommended Potential 1. 2. 3. 4. 5. 6. 7. 8. Bulk buying and on-selling of services Commercialise council s existing asset base Open space contributions charges Municipal-wide Developer Contribution Plans Benchmarking of user fees Full cost recovery through service charges Updating data to maximise roads grants Upgrade existing council owned campgrounds and caravan parks 21 18 13 Recommended 19 Risk 16 12 17 20 10 Second Horizon 9 11 Sell established service to neighbouring local governments or state government 10. Generating income from waste 11. Upgrading to fibre optic cable when completing pipeline renewal projects 12. Subdivision of council owned land 13. Rezoning of council owned land 14. Rationalisation of councils asset base 15. Special rates to fund small scale infrastructure projects Third Horizon 9. 8 4 15 14 2 LOW Revenue yield HIGH 7 5 1 16. Repealing statutory exemptions from rating for specific land users 17. Payment in lieu of rates reform 18. Parking fines reform 19. Use underutilised land for solar and wind projects 20. Tourism and accommodation charges 21. Minimum general purpose grant reform 3 6 LOW
