The Australian Centre of Excellence for Local Government (ACELG) has released a document that aims to improve councils’ financial performance.
The Practice Note on Long Term Financial Planning was prepared by the Institute for Public Works Engineering Australia (IPWEA), with funding from the Local Government Reform Fund.
IPWEA President Paul Di Iulio said most local government infrastructure assets were long lived, needed more maintenance as they aged and eventually needed renewal.
“Effective long-term financial planning for this type of investment is, therefore, essential.” he said.
The Federal Government provided more than $30 million to create the Local Government Reform Fund and the ACELG.
Federal Local Government Minister Simon Crean welcomed the release of the Practice Note, one of several national reform projects to enhance local government performance.
“Local government plays a vital role in the life of our nation, not only in the delivery of local services, but in building communities, planning for future challenges and strengthening local economies.”
Speaking at the Local Government Finance Professionals conference in Perth, ACELG Assistant Director Melissa Gibbs said the centre and the IPWEA strongly endorsed the Minister’s comments.
“Like all governments, local councils face the challenge of making better use of limited funds. Several studies over recent years have highlighted the need for improved financial management in local government, and this is a priority area for further work.”
The Practice Note was compiled with input from local government associations and practitioners, and state and federal government representatives. It is available to all councils and can be downloaded at www.ipwea.org.au/LTFP
The IPWEA has also developed an Excel based LTFP model to input financial projections and generate outputs. The model can be used as is, or adapted to accommodate specific local content and layout needs.
