Significant research on local government finance suggests that the closely managed use of debt by local councils would address infrastructure backlogs and positively support sustainable local communities and organisation performance.
This finding and others can be found in Debt is Not a Dirty Word: The Role and Use of Debt in Local Government, prepared by John Comrie for ACELG at UTS, and supported by consortium partner, the Institute of Public Works Engineering Australasia (IPWEA).
The aim of the project has been to support the Australian local government sector contend with the increasingly complex financial arrangements and considerations required to viably operate a contemporary local council now and into the future. The research builds upon the landmark ACELG paper, In Our Hands, Strengthening Local Government Revenue for the 21st Century.
ACELG Director Associate Professor Roberta Ryan commented: “John Comrie is a recognised thought leader on local government finance and other sector themes, and his research has brought the issue into sharp focus: Something has to shift - it’s simply not possible for many councils to make significant improvements in their financial, asset management and service delivery performance without a change in approach.
“This paper suggests a way forward, and ACELG and its consortium partners will be engaging with the sector about its findings and seeking a view from all on this crucial topic.”
Key chapters include financial fundamentals; review of local government debt and financial performance; local government debt management theory; local government debt management practices.
Chris Champion, IPWEA Chief Executive, welcomed the report: “IPWEA has worked closely with the author in developing the paper as our members are keenly aware of the factors that can impact upon well-developed and financially sustainable strategic, asset management and long-term financial plans.
“IPWEA supports the conclusions of this research and will work with ACELG in informing local government decision makers about its potential value, particularly in addressing asset renewal backlogs.”
The research was overseen by a reference group that included senior representatives from all local government jurisdictions. ACELG will continue this consultative approach in gaining feedback about the research findings, and a series of workshops and presentations are planned.
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