2009-10 strategic plan€¦ · web viewmunicipal association of victoria strategic work plan...

Municipal Association of VictoriaStrategic Work Plan 2009-10

Delivering a strong and strategically positioned sector.

ContentsIntroduction ........................................................................................................................... 3The State of Play for Victoria's Councils................................................................................ 4

Finance and Economics ........................................................................................................ 6Priorities 2009/10 .............................................................................................................. 6

Workforce ............................................................................................................................. 8Priorities 2009/10 .............................................................................................................. 8

Human Services and Public Health ..................................................................................... 10

Priorities 2009/10 ............................................................................................................ 10Planning and Building ......................................................................................................... 12

Priorities 2009/10 ............................................................................................................ 13Environment........................................................................................................................ 14

Priorities 2009/10 ............................................................................................................ 14Infrastructure....................................................................................................................... 16

Priorities 2009/10 ............................................................................................................ 17Transport ............................................................................................................................ 18

Priorities 2009/10 ............................................................................................................ 18

Emergency Management .................................................................................................... 20Priorities 2009/10 ............................................................................................................ 20

Governance and Councillor Development ........................................................................... 22Priorities 2009/10 ............................................................................................................ 23

Insurance ............................................................................................................................ 24Priorities 2009/10 ............................................................................................................ 24

Procurement ....................................................................................................................... 25Priorities 2009/10 ............................................................................................................ 25

Corporate............................................................................................................................ 26Priorities 2009/10 ............................................................................................................ 26

2

IntroductionThe Municipal Association of Victoria (MAV) is the membership association of Victoria's 79councils. A small team of 45 specialist staff focuses on achieving gains for Victoria's councilsthrough collaboration, policy development and effective governance.

This draft strategic plan sets out the state of play for local government in Victoria in the short,medium and long term and prioritises the actions of the MAV in the year ahead that addmost value to the work of its members in providing for the peace, order and goodgovernance of their municipalities.

The priorities outlined in this draft plan are based on their capacity to help address thepressing broader issues of economic crisis and climate change, in the context of theVictorian bushfires, newly elected councils and shifting federal relations. Actions areprioritised on the basis of their relevance to these core issues impacting local government inVictoria.

A critical characteristic of the MAV is its ability to remain flexible and adaptable enough toachieve its set priorities and respond in a timely manner to issues affecting the sector asthey arise. Accordingly, the plan may be adjusted throughout the year to incorporateemerging issues.

Emerging issues may be identified by the MAV or more formally in the context of StateCouncil. State Council is councils' opportunity to raise motions of business for incorporationinto the MAV's work plan.

It is the MAV Board of Management's role, with support from established advisory groups, toprioritise emerging matters in the context of the agreed work program. Emerging issues willbe prioritised according to:

the magnitude of impact the issue is likely to have on councils and their communities;

the number of councils affected by the issue;

the political ramifications of the issue for effective intergovernmental cooperation;

the immediacy of the issue; and

the likelihood of influencing an outcome in local government's favour.

The process for developing the MAV's Strategic Work Plan has been adjusted this year dueto the cancellation of regional consultation meetings caused by the bushfire emergency.

Members are asked to provide their feedback in writing to the MAV by Monday 27 April 2009for the Board's consideration of any adjustments to the plan ahead of the plan being put tothe State Council meeting on Wednesday 27 May 2009.

The MAV will report its achievements against this plan in its Annual Report 2009-10.

3

The State of Play for Victoria’s CouncilsWe are living in a time of great change and uncertainty. In order to ensure that localgovernment continues to function effectively, it is crucial that we plan ahead and prioritiseactions that address the issues most affecting Victoria, Australia and the world.

There is an immediate requirement to respond to and support those councils whosecommunities have been ravaged by the bushfire events of the 7th of February 2009. Theconsequences of these events are likely to have ramifications for all councils from how werespond to future emergencies, to planning and building frameworks, native vegetationmanagement and insurance provisions.

Also of immediacy is the need to support newly formed councils to achieve effectivegovernance. Following the alignment of council elections in November 2008 there is anunprecedented number of new councillors. Half of all councillors are still adjusting to therigors of their new role while the other half are adjusting to the new dynamics that freshfaces bring to the chamber.

In the short to medium term, the global economic crisis, which is leading Australia intoeconomic downturn will change the way councils do business. The crisis is leading us into asituation of financial instability, corporate collapses, increasing unemployment and achanged policy environment of falling interest rates and budget deficits. For localgovernment this presents risks for access to capital, stress on budgets, interrupted localeconomic development and reduced affordability of rates. There is also the potential forfurther economic collapses affecting services in council areas, such as the recent collapse ofABC Learning.

It is important that climate change remains a high priority for local governmentnotwithstanding the economic downturn, as adaptation to climate change and mitigation ofemissions remain urgent, in order to avoid even worse impacts into the future. The impactsof climate change and the policies that seek to direct Australia's emissions reductionresponse will significantly affect councils and communities. In the short to medium termthese policies will lead to changes in the way councils do business. Councils will need towork to improve operational efficiency and minimise costs.

Over the medium to long term it can be expected that emissions will not be reduced sharplyor fast enough to avoid many impacts arising from climate change. These impacts threatento be wide-ranging for councils, including but not limited to decreased lifespan ofinfrastructure and increased maintenance costs, increased pressure on emergencymanagement systems from more frequent and intense severe weather events, a rise inhealth risks for the young and elderly, declining agricultural productivity exacerbating ruralpopulation decline, threats to ecosystem health and pressure on coastal assets from risingsea levels with associated planning implications and liabilities. Local government will need tounderstand, plan for and adapt to the likely impacts of climate change to ensure thecontinued viability and liveability of communities.

The shifting dynamic in federal and local government relations also has short to long termimpacts for councils. A new era of federalism is dawning in Australia and local government iswell positioned to benefit from a more direct relationship with the Federal Government. Localgovernment spends locally and has clear government structures and accountabilities,making it an attractive destination for funding as already demonstrated by the inclusion ofcommunity infrastructure grants in the Federal Government's most recent economic stimuluspackage. Meanwhile a close watch is needed to ensure that communities don't lose out inany shift in responsibilities.

4

The first indication of the Federal Government's desire to engage local government moreclosely was the establishment of the Australian Council of Local Governments. Following theinaugural meeting in November 2008 a steering committee has been formed that will focuson developing a stronger relationship between the two spheres of government; drivingreforms to infrastructure and services provided by local government; and making progresstowards the constitutional recognition of local government.

Victoria has a prime opportunity to influence this closer relationship through the appointmentof MAV Board representative, Cr Geoff Lake to the Presidency of the Australian LocalGovernment Association and, in this capacity, to Deputy Chair of the Australian Council ofLocal Governments. These developments coincide with opportunities in the electoral cyclesat both the federal and state levels to negotiate positive outcomes for local government.

5

Finance and EconomicsThe significant infrastructure portfolios of councils are typically the biggest source of financialchallenge for local government. Councils must continually make long term provision forrenewing and rebuilding this infrastructure at the rate it degrades. Climate change is likely toreduce the lifespan of infrastructure and drive up maintenance and repair costs. This willspeed up the backlog of works at a time when access to capital for funding major works willlikely be reduced by the economic downturn.

Government tax revenues can be expected to fall as a result of the economic slowdown.This will place pressure on council budgets, which are reliant to varying extents onintergovernmental financial transfers from the Federal and Victorian Governments. Thealready limited opportunities for councils to raise their own revenue will be restricted furtherby the affordability of rates and user fees as residents' incomes are negatively impacted bythe downturn.

Reasonable management of debt will be critical for councils as the economic crisis increasespressure for governments to borrow. While most councils do not carry significant levels ofdebt, borrowing too heavily will constrain a council's future capacity to provide services andinfrastructure.

Some councils are more at risk of financial stress than others. Structural factors that makecouncils more susceptible to financial distress are typically small population, small rate base,large geographic area and large road network. Generally speaking these councils representcommunities whose economic structures are largely reliant on agriculture, and which havesuffered under persistent drought conditions exacerbated by a changing climate.

Councils must address these challenges to ensure against substandard infrastructure orservices and prevent transfer of the burden to rebuild infrastructure or pay borrowings tofuture generations. Improving the financial position of councils requires an increase infunding received by local government and internal reforms to ensure councils raise sufficientrevenue from their communities and provide services efficiently.

Priorities 2009/10The MAV has developed a comprehensive methodology for analysing council finances tomeasure the extent of challenges facing Victoria's councils. In recent years this work hasinformed several prominent inquiries that have underpinned the shift in federal and localgovernment relations and contributed to councils' understanding of the financial pressuresfacing their municipalities.

Building on this work the MAV's priorities in 2009/10 will be:

Complete modelling for annual financial sustainability indexEstablish the Local Government Cost Index for 2010/11Explore opportunities for reforming rating practices to take into account capacity topay in the current economic climateContinue advocating that Commonwealth funding to councils should be increased toone per cent of its revenue base and an escalator introduced reflective of the coststructures of local government, such as the Wage Cost IndexContinue advocating that a fund targeted at small rural councils should beestablished to assist councils in overcoming backlog infrastructure issues

6

Continue providing grants for economic development projects in towns withpopulations less than 10,000 under the State Government $1.8 million Small TownsVictoria ProgramAssist bushfire affected councils in their negotiations with other levels of governmentaround recovery planning processes

7

WorkforceAs council budgets are squeezed by falling government revenues and a reluctance toincrease rates in times of financial insecurity, wage costs will inevitably be the subject ofscrutiny both within councils and by communities. The Victorian Government has alreadyshowed leadership on public sector restraint in wage growth by announcing a wage policythat limits wage increases to 2.5%.

Councils will need to carefully plan their workforce needs in order to contain growth whilemaintaining appropriate service levels. There is a need for greater availability of data on thelocal government workforce for the purposes of planning and benchmarking labour costs,turnover, absenteeism, workplace health and safety, recruitment experiences, trainingexpenditure, workforce demographics, working arrangements, succession planning andleave liabilities.

Recruitment and retention of „in-demand' employees is a critical issue facing councils acrossVictoria. Specific skill shortages are predominantly reported to be in the professional areasof planning, engineering and community care. As the global economic crisis sets in, onebenefit to local government will be an easing of the workforce pressures and wage growththat has typified the past decade. Until recently historically low levels of unemployment andthe demographic profile of the local government workforce were placing the sector in aparticularly vulnerable position.

Public sector infrastructure projects have been identified as a key plank in economicstimulus measures to stave off unemployment. Councils will be challenged to source localcontractors to undertake community infrastructure projects in competition with other levels ofgovernment. As commercial development slows and building activity declines, localgovernment is well placed to compete for the larger pool of available employees with afortuitously timed marketing campaign to reposition itself as a significant employmentindustry.

In the inherently resource intensive and costly areas of community services, wage pressuresare not likely to ease without a concerted effort to attract people to these professions. Therapidly ageing workforce in these service areas and training requirements needed to replacethese skills require complex and long term strategies to address these specific skillshortages.

In the medium to long term it is likely that councils will experience increased pressure in thealready tight labour market for environmental health officers as food and water bornediseases are anticipated to increase in response to climate change. An increased focus onprofessional development in this service area will be needed to improve local government'sresponse.

In the immediate aftermath of the Victorian bushfires, councils demonstrated their goodwilland generosity by providing staff in aid of affected municipalities. It is likely thesemunicipalities will continue to require support during the rebuilding and recovery effort.

Priorities 2009/10The MAV has identified the need to improve the availability of data for improved workforceplanning in local government and to reposition local government as a significant employmentindustry. Development work is well underway on a benchmarking exercise and anemployment branding campaign to address both these needs.

8


Workforce Planning and Industrial RelationsComplete a benchmarking survey to assist councils in workforce planningStandardise and simplify local government awards to comply with national standards(award modernisation)Negotiate a new local government kindergarten agreement with the AustralianEducation UnionAssist bushfire affected councils to plan and meet their workforce requirements forthe rebuilding and recovery of communitiesAdvocate for funding for drought affected councils to employ staff to assist therecovery and rebuilding of communitiesMonitor changes in the environment to assist councils in planning for increasedburden on environmental health teams

Recruitment and RetentionImplement an employment brand distilled in the idea of “challenge” which can beused to unify communications and culture and act as a core brand „promise' to allstakeholdersSeek the agreement of councils for developing a set of standards and activities thatwill not only communicate the positioning „promise' to potential recruits, but also alignhuman resource activities to deliver on that promiseInvestigate savings that can be derived from economies of scale in local governmentrecruitment advertising and expenditure to provide a funding stream for ongoingmarketing activities to reposition the sector as a significant employment industryReview and develop strategies for recruiting and retaining maternal and child healthnurses

Professional DevelopmentDesign and implement a training program for environmental health officers aroundrecent legislative changes and continue advocating for professional developmentsupport from the State Government

9

Human Services and Public HealthSocial inclusion is never more important than during times of economic turbulence. Localgovernment will play a critical role in protecting our most vulnerable by promoting andimplementing initiatives that provide better access to services, and greater equity in programoutcomes for marginalised groups including migrants, people with a disability and olderpeople.

The role of councils extends beyond service delivery to demonstrating leadership byproviding physical environments that maximise participation and supporting initiatives thatencourage inclusive communities.

The economic conditions also increase the likelihood of corporate collapse which, afterdecades of privatisation in community services, could have dire consequences for the localavailability of services as demonstrated by the recent collapse of ABC Learning.

Human services are inherently resource intensive and costly. As council budgets aresqueezed by falling government revenues and a reluctance to increase rates in times offinancial insecurity, community services will be the likely targets of budget cuts.Opportunities to reform the delivery of services, for example by sharing services betweencouncils, should be more vigorously pursued to save on costs while maintaining servicelevels.

The shift in federal and local government relations present both risks and opportunities forlocal government in early years services, disability services and aged care. Localgovernment in Victoria has a long and proud involvement in the delivery of these servicesand is well placed to contribute to national debates on the optimal structures for servicedelivery.

Of critical importance to local government in the realignment of responsibilities andintroduction of common standards for service provision will be quality of care outcomes,opportunities to tailor services at the local and regional levels and recognition of the role oflocal government as planner, service provider and funder.

In the medium to long term, councils will need to consider adjusting the way both aged careand maternal child and health services are delivered as the elderly and young members ofour communities are increasingly exposed to health impacts associated with climate change,for example, increased heat stress.

Climate change is also likely to result in a rise in the incidence of food and water-bornedisease, placing increased demand on councils' environmental health teams. It will beimportant to monitor changes in legislation and environmental conditions in order to managethe workload of these teams.

Priorities 2009/10The MAV plays a critical role in representing local government's interests to other levels ofgovernment in the direct provision of human services and public health enforcement. In thepast year a funding increase of $54 million was achieved for maternal and child healthservices and recognition of local government's role as the primary provider of Home andCommunity Care in Victoria has been achieved in the federal sphere. But increasingly theMAV is also playing a role in driving efficiency in community services. Recent initiatives thathave or have the potential to reform services include the introduction of an integrated librarymanagement system across multiple libraries and working with the State Government to

10

establish a central register for mobile and temporary food businesses that operate acrossmultiple municipalities.


Position local government to benefit from the re-alignment of responsibilities betweenfederal, state and local government for aged care, early childhood, disability andmental health servicesMaintain local government's role as the primary provider of Home and CommunityCare services in VictoriaAdminister and deliver grants programs that increase participation by promoting agefriendly communities; cultural diversity; and engagement between faith communitiesand the broader communityDevelop a partnership agreement with the State Government for the delivery ofeducation and early childhood services that, among other things, protects councilsagainst cost shiftingSupport councils to take up opportunities under federal funding for the planning anddevelopment of community hubs in coordination with State Government projects,being mindful of the potential for cost shiftingAssist bushfire affected councils in their negotiations with other levels of governmentaround recovery planning for community development, housing and psychosocialsupport arrangementsProgress a shared service model for IT systems supporting maternal and child healthservices and data collectionEstablish an aggregated procurement arrangement for library materials, and positionVictorian local government in the library funding campaign at the national levelMonitor and coordinate local government input to the introduction of new legislativeprovisions and changes in food safety policy to minimise the burden on councilsSupport councils to incorporate new legislative requirements in their Municipal PublicHealth PlansMonitor legislative proposals for establishing standards for accessing premises andtheir impacts for local governmentAdvocate for initiatives to improve youth services including mental health andcounselingAdvocate for measures and initiatives to improve community safety, particularly foryoung people

11

Planning and BuildingLocal government's role in land use planning and building will be pivotal in supportingeconomic development and social inclusion in these uncertain economic times.

Local government will need to demonstrate that it is keen and capable of working closelywith other levels of government to stimulate the economy, in order to avoid threats to itsauthority in the planning system in the form of the State Government exercising its call-inpowers to fast track development and stimulate employment opportunities.

The jobs crisis might last for several years, but development decisions will last forgenerations. Local government has a key role to play in protecting the long term amenity ofour communities by demonstrating a willingness to encourage development while stilldemanding the highest quality of development.

Victoria has largely resisted the national trend towards the removal of councillors fromplanning permit decision making. However, the onus is increasingly on councils to establishtheir „value proposition' with community and government by demonstrating good practiceand accountable processes.

As building and construction activity declines as a consequence of the financial crisis theworkloads of planning departments is likely to ease as compared with the pressureexperienced during recent boom times. But it will be important to maintain the momentum ofinitiatives to cut red tape in order to meet rising community expectations for service deliveryand maximize the advantage of appropriate development opportunities.

Local government will be a key player in local responses to climate change by drivingsustainability outcomes through land use planning decisions. Our traditional models of urbandevelopment and rural land use are being challenged and are losing relevance. Thedepletion of our natural resources and the contribution of the built environment to increasedgreenhouse gases are not sustainable.

The projected impacts of climate change will force councils to consider and enableappropriate patterns of human settlement and more resilient forms of construction, to reduceexposure and vulnerability to consequences such as coastal erosion, rising sea levels,coastal storm surge and severe weather events.

New building requirements have already been introduced in response to February's tragicbushfire events. It is likely that the Royal Commission into these events and governmentresponses to the inquiry will have further impacts for building and land use planning acrossVictoria.

In the immediate aftermath of the fires, councils demonstrated their goodwill and generosityin coming to the aid of affected municipalities. It is likely these municipalities will continue torequire support during the rebuilding effort.

Following the alignment of council elections in November last year, all councils will berequired to review their planning schemes in the coming financial year. At this time of rapidchange, communities are more informed, more involved and more resistant to change.Councillors play an important role in demonstrating leadership and vision for the future oftheir communities and helping residents understand the planning system and processes.Supporting newly elected councillors to be effective in their roles as custodians of their localnatural and built environments will be critical.

12

Priorities 2009/10The MAV has improved councils access to government and enabled early input to manypolicy and regulatory changes. It has influenced state programs and processes to improvesupport for councils.


Develop a sector-wide position on what local government wants to achieve from thereview of the Planning and Environment Act 1987 and advocate this positionPilot the planning process improvement methodology in response to the VictorianAuditor General's performance audit of planningPursue greater cost recovery for councils across statutory and strategic planningservices through the current review of planning feesObtain support for councils using ecologically sustainable development assessmenttools, broaden awareness of these tools for improving outcomes and developpractical and technical guidance for councils considering their useContinue to actively support and advocate for the recovery and rebuilding efforts offire affected councils to the State Government and Victorian Bushfire Reconstructionand Recovery AuthorityScope and implement a project to better engage councils in urban planning issues,particularly regarding housing, transport oriented development and economicdevelopmentPosition rural and regional councils to actively inform and benefit from the StateGovernment regional planning initiativesEnsure local government benefits directly from the federally funded $6 million e-planning project and implementation of the e-planning roadmapIdentify and pursue opportunities and improve awareness to make councils role inhousing policy and provision more effectiveSeek further clarity on the proposed new residential zones and advocate for supportfor councils in the translation to the new zonesAdvocate the retention of local input in planning decisions, including localgovernment's role as a planning and responsible authority, Development ApprovalCommittees and Priority Development PanelsSupport councils to access tools and information for planning decisions that takeaccount of rising sea levelsSupport councils to address remaining transitional issues associated with the newrural zones

13

EnvironmentThe Federal Government has indicated its policy commitment to introduce a price on carbonpollution in most sectors of the economy including waste, energy and liquid fuels. This willhave a significant impact for the operations of local government in waste management andenergy intensive activities including public lighting.

Councils will need to understand their exposure to a carbon price and where feasibleincrease their energy efficiency, identify new low-emissions energy sources and reducereliance on fossil fuels by embracing the introduction of alternative waste technologies andsustainable public lighting options among other measures.

Across Victoria climate change is predicted to have overwhelmingly negative impacts onecosystems, biodiversity and natural assets. Councils will need to understand the potentialimpacts of climate change on their local landscapes and livelihoods, and seek to work withother levels of government to plan for, reduce vulnerability and adapt to change.

Decreased rainfall and increased evaporation will continue to challenge councils to find newways of managing public open space and other water-reliant council assets. Enforcementand regulation of stormwater and domestic wastewater management will need to bestrengthened to enhance the health of waterways and maximise the reuse of stormwater.

Local government is increasingly playing a role in working with communities to encouragefurther water conservation and advocating for new and secure sources of water to be madeavailable to communities and industries to ensure the long term viability of regions.

Councils can anticipate an increased prevalence of pest plant and animal species as a resultof climate change. Already pest plant and animal management presents a major challengefor councils. It will remain critical to obtain support from the State Government to ensure thatcouncils have the capacity to respond effectively to this natural resource management need.Clarity of legislative responsibility for pest plant management will form part of this effort.

More immediately, the Victorian bushfires have focused attention on the natural resourcemanagement responsibilities of councils. It is likely that the Royal Commission into thebushfires and government responses to the inquiry will affect native vegetation managementpolicies and practices of councils in bushfire prone areas. It will be important to maintain abalance between managing fire risk and protecting native vegetation and biodiversity valuesthat sustain resilient and productive landscapes.

Priorities 2009/10The MAV is playing a lead role in raising awareness and understanding of the implications ofclimate change and government responses to climate change for local government inVictoria.


Pursue a joint procurement process for emissions calculation and reporting servicesto councils to meet the compliance requirements of the proposed carbon pollutionreduction schemeIdentify opportunities for collaboration to enable councils to commence risk andadaptation planning to climate change

14

Establish a sector-wide policy position on climate change for the endorsement ofState CouncilDefine the role of local government in climate change emissions reduction andcomplementary mitigation policy and programsDefine the role of councils in building community adaptive capacity and resilience tothe projected impacts of climate changeDevelop a sector-wide position on the role local government envisages for itself insupporting communities to adjust to change over time and to ensure the continuedviability and liveability of municipalities and regions across VictoriaIdentify councils' expectations of the role MAV should play in representing thesector's needs and interests on climate changeDevelop priorities and a work plan for the MAV on climate changeAdvocate the importance of local government and communities being activelyinvolved in the identification of new and secure water supplies across Victoria, aswell as decisions about changes to water management approachesAdvocate for an improved regulatory framework for the management of domesticwastewater, including clarity of roles and responsibilities between councils and waterauthoritiesSeek clarification of the legislative responsibility for pest plant managementInform the government response to the findings of the Royal Commission into theVictorian Bushfires in relation to native vegetation managementInform the development of the State Government's policy directions for naturalresource managementInform the review of the regional waste management groupsAdvocate for increased support to councils to understand the projected impacts ofclimate change on infrastructure and settlements, and to introduce adaptationresponses

15

InfrastructureIn response to the economic downturn the Federal Government first established a $300million Regional and Local Community Infrastructure program providing funds for all councilsto put towards „shovel ready' projects awaiting funding. It then extended the competitivecomponent of the program by a further $500 million.

The full $800 million is required to be spent in the short term. The capacity of councils to get$2 million plus projects underway within six months of project approval will be a challenge,particularly given the concurrent investment that will be occurring in schools, social housingand other infrastructure projects. It will be critical that councils meet the funding criteria andcommence projects as quickly as possible in order to meet the objectives of the stimuluspackage and prove into the future that local government is indeed an attractive destinationfor investment.

There will be an inherent tension between getting projects underway and getting the bestpolicy outcomes that could be achieved through coordination with the State Government inplanning community infrastructure developments. Councils will need to be supported to workwith State Government departments to maximise community outcomes from federal fundingfor infrastructure developments and to do so in a timely way that meets the funding criteria.

The asset management challenge has already been discussed in the context of financialchallenges for local government. Climate change is likely to reduce the lifespan ofinfrastructure, increase operational, maintenance and repair costs, and exacerbate thebacklog of works at a time when access to capital for funding major works will likely bereduced by the economic downturn.

Conversely lending rates are at an historical low providing a window of opportunity forcouncils to borrow cheaply for the purposes of renewal catch up. Councils will have toconsider their investment returns and borrowings carefully to ensure against substandardinfrastructure and prevent transfer of the burden to rebuild infrastructure or pay borrowingsto future generations.

Collaborative approaches have been particularly successful at meeting infrastructurechallenges relating to information technology. Moving forward it will be important for councilsto have a shared strategy that can guide and compliment council investment plans to enablecommon platforms that can accommodate more shared service initiatives and deliver furthersavings and service improvements.

Broadband infrastructure will be critical to economic development, particularly in regionalparts of Victoria. These areas are more heavily reliant on narrow economic drivers such asagriculture for wealth creation. The dual effect of the financial crisis and persistent droughtconditions exacerbated by climate change is having a significant impact on the viability offarming communities. Local government has an important role in building communityresilience by attracting infrastructure investments that support alternative economicopportunities in these regions.

The 2009 Victorian bushfires have had important lessons for improvements that can bemade to emergency management arrangements and preparedness. Information technologysolutions for improved coordination between Municipal Emergency Coordination Centres,reforming property data management systems and strategies for disaster recovery will beamong local government responses to these events.

16

Priorities 2009/10Victoria has led the asset management challenge in Australia through the collection of sounddata and delivery of capacity development programs to assist councils to understand themagnitude of the challenge. Increasingly innovations in asset management andinfrastructure provision are being driven through the sharing of services between councils.


Community InfrastructureWork with the Victorian Coordinator General to assist councils to think creatively anddifferently when planning and coordinating community infrastructure projects tomaximise community outcomes, meet Federal Government funding criteria andleverage opportunities for further State Government investmentProvide advice to councils on infrastructure investment and borrowingsAssist bushfire affected councils in their negotiations with other levels of governmentaround rebuilding planning and funding processes

Asset ManagementBuild council understanding on the anticipated impacts of climate change on councilinfrastructure and assets, and opportunities to improve the management responseIncorporate climate change considerations into the Advanced Step AssetManagement frameworkAssist rural councils to better understand their current financial position in relation toasset renewal liabilities and future options

BroadbandAssist councils to benefit from government funding for broadband infrastructureprojects to drive economic development in the regionsAdvocate for equity in costs of broadband services to the 10 per cent who won't haveaccess to the optical cable being rolled out under the National Broadband Network

Information TechnologyProduce a local government IT strategy to guide and compliment council strategiesAdvocate whole of government reform to property data management and supportcouncils to embrace this reformImplement a local government IT disaster recovery blueprint, high level trainingprogram and associated solutions to reduce costs and improve security for allcouncilsDevelop and procure an IT solution(s) for the operation of Municipal EmergencyCoordination Centres

17

TransportAccess to transport is critical for promoting social inclusion, which as already described willtake on increased importance for managing the impacts of the economic downturn. As themanagers of approximately 85 per cent of Victoria's road network, local government plays acritical role in providing and maintaining transport infrastructure.

Despite the financial challenges that are expected to test councils in the short to mediumturn, it will be important for councils to make appropriate provisions that ensure local roads,bicycle paths and pedestrian paths are maintained to a standard that is safe and functionalfor their communities.

While the State Government is responsible for the provision of major transport infrastructureincluding freight routes and public transport, local government has a significant responsibilityin lobbying other levels of government for transport outcomes that meet the needs of localeconomies and communities.

Many councils have developed transport plans to provide a framework for advocacy on bothfreight and passenger transport issues. It is likely that investment in major transportinfrastructure will suffer in the medium term as a result of decreased access to capital for alllevels of government and commercial providers of infrastructure. However, there is a windowof opportunity to win support for major projects as this type of infrastructure investment lendsitself well to economic stimulus measures by creating jobs.

As investment slows, increased integration between land use and transport planning isneeded to ensure the most efficient and effective use of existing transport infrastructure. Thiswill assist in demonstrating the viability of new transport infrastructure and reduce travelneeds. Local government will also need to be seen to be encouraging economicdevelopment by supporting reforms that ensure the efficient operation of high productivityvehicles and the movement of freight by road across the state.

Councils also need to be encouraged to work more collaboratively with each other on landuse and transport planning. There are already some good examples of councils being moreeffective and influential in their transport advocacy by working in collaboration on a regionalbasis and on issues of shared importance.

Transport is integral to Australia's climate change response. Appropriate investment in publictransport is needed to rapidly and significantly reduce car dependency and greenhouse gasemissions. A further challenge is to adapt the transport system to changes in climate,including flooding, drying, wind damage, extreme heat and rising sea levels. As previouslydescribed, these effects will reduce the life of infrastructure and will require changes inconstruction and maintenance regimes.

Priorities 2009/10The MAV has developed a position paper that outlines transport issues for local governmentin detail and articulates a set of common objectives for the sector. This position wasendorsed by the State Council in October 2008 and provides an agreed framework for theMAV's advocacy and capacity building activities in transport going forward.


18

Continue advocating that the State Government should immediately invest in multi-modalpublic transport to cater for current and future demand on the public transport networkWork with the Rail Freight Alliance to continue advocating for significant investment inrail freight throughout Victoria to cater for future trade growth, provide a viable alternativefor freight transport and to ensure the long-term sustainability of the transport andlogistics sectorEnsure councils meet their obligations for rail crossing safety, particularly through thecoordination of council efforts to enter into Safety Interface AgreementsFacilitate negotiation with the State Government for recognition of community transportin state policy and requisite funding supportDevelop a sector-wide position on freight vehicle access to local roadsSeek funding for councils to upgrade first and last mile freight access and local roadbridgesAdvocate for improved funding arrangements for the construction, maintenance andupgrade of bicycle pathsIdentify gaps in rural transport links, including public transport and advocate solutions

19

Emergency ManagementIt is expected that climate change will affect average, maximum and minimum temperatures,rainfall patterns, sea level, wind and storm activity. As a result, the frequency and severity offlood, bushfire, wind and storm events are projected to rise, as well as the frequency and lengthof heatwaves and drought.

Local government plays a critical but often under-recognised role in Victoria's emergencymanagement arrangements. During and following an emergency people seek help from theirlocal council as demonstrated in droves by Victoria's recent bushfires.

The capacity of councils to perform emergency management functions varies greatlybetween councils. As the threat of emergencies increases with climate change it will be moreimportant than ever that emergency management responsibilities are assigned appropriatelywithin councils and that staff are adequately trained and supported to undertake theiremergency management duties.

Despite the usually low profile of emergency management within local government, buildingcommunity resilience to emergencies is core business for local government. Effectiveemergency management requires an integrated, multi-agency approach so it is imperativethat local government is at the table for the development of programs at regional, state andnational levels.

Municipal level emergency management arrangements are currently under review. Thisreview will set the arrangements for local government participation in emergencymanagement going forward, and it will be essential that all councils are engaged in thisprocess in order to set clear parameters around local government roles and responsibilities.

Some councils have experienced a number of large scale emergencies in recent years. Theopportunity to share the valuable knowledge and innovative practices resulting from theseexperiences with the rest of the sector should not be missed. The Royal Commission into theVictorian bushfires will also likely have implications for emergency managementarrangements and fire prevention planning that will impact councils across Victoria, not justthe affected municipalities.

Priorities 2009/10The MAV has a formal role representing local government and working with other agencieswithin the state emergency management framework. Emphasis has been placed on ensuringthere is a clear understanding of councils' variable capacity to undertake emergencymanagement work and that the sector has the opportunity to actively participate in thedevelopment of new policy. The MAV also aims to build capacity and capability within localgovernment through information sharing, facilitation of regional networks, cost saving andtechnical advice.


Coordinate a response to the Royal Commission into the 2009 Victorian bushfiresAssist bushfire affected councils in their negotiations with other levels of governmentaround recovery planning processesWork with councils and the state government to ensure an integrated bushfirerecovery process that aims to build long-term community resilience and achievebetter community outcomes

20

Develop clear parameters around local government's roles and responsibilities inemergency management, for inclusion in the review of municipal level emergencymanagement arrangementsDevelop a local government emergency management toolkitWork with the Victoria State Emergency Service (VICSES) to ensure the new processfor auditing municipal emergency management plans provides guidance and supportfor councils to exceed benchmark resultsReview the VICSES-local government agreement concerning funding andaccommodation for VICSES volunteer unitsWork with Department of Human Services to ensure a clear understanding of agreedprocesses and procedures in relation to relief and recoveryAdvocate for funded emergency management positions within the municipal sectorWork with the State Government to identify an appropriate level of training anddelivery mechanism for local government officers to adequately perform emergencymanagement functionsBuild sector capacity and increase local government voice in emergencymanagement through the creation of regional forums in partnership with MunicipalEmergency Management Enhancement Group (MEMEG)Work with the emergency management sector to promote best practice in the area ofconsultation and communication

21

Governance and Councillor DevelopmentIn 2005 local government commenced a journey that started with the decision to drive itsown kind of reform rather than wait for some other level of government to impose a lessdesirable regime. As a new kind of federalism looms for Australia it will be even moreimportant that local government in Victoria demonstrates its own capacity for reform and itswillingness to embrace the highest levels of professionalism and accountability.

In the lead up to last year's elections a number of legislative changes were introduced thatincrease the level of accountability for councillors. Councillors will need to be supported tounderstand new conflicts of interest provisions and it may be necessary to seek furtherclarity around these and other legislative reforms. Councillor Conduct Panels were alsointroduced as part of these changes to provide a new mechanism to assist councils enforcetheir codes of conduct from June.

Professional development programs for councillors need to reflect the balance of needswithin local government by providing opportunities to develop fundamental skill sets; assistmayors to meet the challenges of leading new teams; foster good teamwork betweencouncils and their management teams; nurture the political leadership of all councillors tohelp their communities address the local impacts of climate change and financial instability;and extend the learning experiences of individual councillors.

Following the alignment of council elections in November 2008 there is an unprecedentednumber of new councillors in Victoria. A specialist centre with dedicated training facilities willenable the MAV to expand its existing professional development programs to provide moretargeted face-to-face training for small to medium sized groups that will focus on deliveringthe training needs of new councillors in its first year of operation.

The number of new councillors and the new dynamic that they bring to council chambersacross Victoria presents particular challenges for mayors by adding to the complexities ofleadership, team building, chairing meetings and negotiating differences. So too it raises amore critical need to focus on relationships and alignment between the new council teamand the senior management team.

Equally, new and experienced councillors are being challenged to respond locally to theglobal and very serious issues of climate change and economic downturn. All councillorsrequire professional development opportunities and support to grapple with their leadershiprole in guiding and supporting their communities through these changing times and tounderstand their capacity to impact economic development and climate change adaptationthrough land use planning, budgeting, local investment, asset renewal and sustainabilityamong other decisions.

Councils are increasingly playing a facilitator role by supporting bottom-up communityplanning processes. This model of governance has been demonstrated to have powerfulinfluence with other levels of government. There are already many examples of significantgovernment investment where it has been demonstrated that the community actually ownsthe plan that describes what it wants. The successful implementation of these bottom-upcommunity planning methods also provide good models for the recovery of communitiesaffected by the 2009 Victorian bushfires.

Strong local leadership has never been more important than now. Opportunities need to beprovided that extend the professional development of individual councillors if they so chose.

22

In support of the notion of life-long learning, accredited training for councillors is beingpursued to promote high level leadership skills and an acceptance that learning is a journeyto be undertaken throughout the council term (and beyond). Two scholarship programs (theMAV Local Government Fellowship and the Cranlana Scholarship) offer further opportunitiesfor councillors aspiring to broaden their learning experiences.

Priorities 2009/10In 2006 the MAV developed the Councillor Competency Framework to document thecomplex role of a councillor and the attributes, skills and knowledge that are needed to beeffective in the role. The Councillor Competency Framework guides the development of theMAV's professional development and training programs.


GovernanceEstablish Councillor Conduct PanelsMonitor the impacts of recent changes to the Local Government Act 1989 and seekfurther clarity if necessarySupport councillors to understand the new conflicts of interest provisionsReview the operations of the 2008 council elections and electoral representationreviewsConduct the four-yearly Councillor Census to better understand the currentcomposition of councillors and their development needs

Future of Local GovernmentEstablish a new steering committee to explore preferred directions for the sectorincluding whole of government reform agenda and performance measurementExtend the Lighthouse Community Planning Program to include all councils

Professional DevelopmentTailor professional development programs to reflect the balance of needs within localgovernment by providing opportunities to develop fundamental skill sets; assistmayors to meet the challenges of leading new teams; foster good teamwork betweencouncils and their management teams; nurture the political leadership of allcouncillors to help their communities address the local impacts of climate change andfinancial instability; and extend the learning experiences of individual councillorsConsolidate opportunities for accredited training for councillorsEstablish dedicated training facilities at the MAV officesConduct training for new councillors on leadership, negotiation skills, presentationskills, meeting conduct, finance and CEO appraisal processesConduct scholarship programs for councillors aspiring to broaden their learningexperiencesExtend the offering of the Understanding Local Government training program to otherorganisations and agencies so they better understand the role of local governmentand the role of councillors

23

InsuranceThe global economic crisis is already impacting insurance companies as the price ofinvestment stocks have plunged. All insurance customers will feel the effects of this in theform of increased premiums.

Collective models of insurance such as those schemes provided by MAV Insurance haveproven over time to protect member councils somewhat from the vagaries of tighteninginsurance markets by ameliorating the sometimes violent fluctuations in premiums.

In anticipation of the current economic climate MAV Insurance last year took on anincreased portion of risk that will shield member councils from the full impact of reinsurancepremium increases.

The risk of insurer failure increases significantly during these turbulent times. MAV Insurancehas also taken measures to increase the number of reinsurers on its program to provideincreased protection for its members. The failure of a reinsurer is the single biggest risk toMAV Insurance. As such the Board has processes in place to monitor the risk rating of everyreinsurer that has participated in the scheme since its inception.

Climate change is increasing the frequency and intensity of severe weather events exposingcouncils to further risk of property damage and public liability claims. Retaining appropriatelevels of protection against the incidence of flood, bushfires and storms is critical.

The 2009 Victorian bushfires have already raised debate about native vegetationmanagement practices of councils. The findings of the Royal Commission and governmentresponses to this inquiry will likely have important risk management lessons for all councils.

As pressure mounts for councils to find savings within their own budgets so too does theneed to pursue sector-wide savings wherever possible. Establishing a self insurance modelfor workers compensation has the potential to deliver significant operational and financialbenefits for Victorian councils. A major investment is first required to deliver savings tocouncils estimated at $16 million in the first three years and $12 million per annumthereafter. Attempts to secure the initial funding required have so far been unsuccessful.

Priorities 2009/10The MAV has anticipated a downturn in economic conditions and taken steps to shieldmember councils against tightening insurance markets.


Increase the number of reinsurers on the reinsurance program by threeComplete modeling to ensure that insurance limits are adequate in times ofincreasing frequency and severity of catastrophic eventsMonitor the Royal Commission into the 2009 Victorian bushfires for risk managementlessonsSeek alternative funding to pursue a self insurance model for workers compensationin Victoria

24

ProcurementPublic sector efficiency reform will be a priority issue in uncertain economic times and localgovernment will need to be prepared to demonstrate its capacity for reform in order to takeadvantage of any shift to a more direct relationship with the Federal Government.

In Victoria, local government spends in excess of $2.7 billion on goods and servicesannually. There are very few corporations that could match the collective buying power oflocal councils in Victoria. An opportunity exists for councils to take advantage of localgovernment's collective economies of scale to drive fundamental improvements in efficiencyand reform services.

Projects such as the introduction of an integrated library management system havedemonstrated the power of group purchasing arrangements to save on unit price and totransform services and deliver policy outcomes. These types of procurement initiativesshould be prioritised for their ability to respond to the critical strategic issues for localgovernment, such as responding to climate change policy directions.

Meanwhile local procurement has an important role to play in supporting local economiesduring times of economic turbulence. Councils need to allocate resources and takeadvantage of professional development opportunities to develop their capacity to makepurchasing decisions that have strategic outcomes for local communities.

Priorities 2009/10In 2009 the MAV established a business unit focusing on achieving better procurementoutcomes for local councils and has incorporated its former purchasing entity Co-operativePurchasing Services (CPS) back into the activities of the Association.


Pursue group purchasing initiatives that transform services and/or provide policysolutions aligned to desirable community outcomesReview all Co-operative Purchasing Service (CPS) purchasing contractsSeek out new opportunities to act as the agent for councils where the buying powerof councils can be significantly increased by grouping together for the purchase ofgoods and servicesDeliver forums and conferences, visiting speaker programs, training programs andadvice and support to improve the procurement capacity and practices of localcouncilsWork with Local Government Victoria to undertake research, contribute to policydevelopment and establish best practice in procurement under the CouncilsReforming Business programWork with procurement services offered by local government associations in otherstates to deliver national procurement programs where possible

25

CorporateIn presenting its strategic work plan for the year ahead the Municipal Association of Victoriais cognisant of the need to demonstrate leadership on the issues identified in the plan.

Like councils the MAV has to respond to the need for increased public sector efficiency bytightening its activities and restraining costs. The MAV is proposing here to contain itsoperations to activities that provide the most value to member councils in addressing thecore issues affecting the sector and stepping away from trying to respond to every needacross the gamut of local government operations while remaining flexible enough to pick upany emerging issues of strategic importance.

The MAV did not increase the membership subscriptions of councils for a period of 12 years.In 2005/06 it increased subscriptions by CPI. The Board is committed, in principle, tomaintaining the real value of subscriptions in future years.

In demonstrating leadership the MAV too needs to examine its carbon footprint and takeaction to reduce its emissions. A plan has been developed to reduce the Association'semissions, which include improving the online delivery of communications and informationneeds of members and establishing videoconferencing facilities to reduce the travel needs,costs and emissions generated to attend meetings and events at the MAV.

Following council elections a new Board has been elected to oversee the operations of theMAV. The governance and advisory structures that support the Board will be reviewed toensure the most effective model of representation for member councils and theresponsiveness of the Association to members' needs.

Priorities 2009/10Redevelop the MAV website to improve delivery of the communication andinformation needs of membersIntroduce new compliance software to save costs and improve compliance across allbusiness unitsImplement an action plan, including the setting of targets, to reduce the carbonfootprint of the MAVEstablish video conferencing facilities at the MAV to reduce costs to councilsattending MAV meetings and events and extend and improve communicationsReview governance and advisory structures that support the BoardCoordinate logistics for the effective running of State Council and the implementationof State Council resolutionsComplete the review of Board regions

26

2009-10 strategic plan€¦ · web viewmunicipal association of victoria strategic work plan...

Documents