1. SERVICE PLANNING AND COMMUNITY ENGAGEMENT
IPWEA Vic CONFERENCE
21 April 2016
SERVICE PLANNING AND COMMUNITY ENGAGEMENT 1

2. Scope and Strategy

3. How many services does Council provide?
Q and A
How many services does Council provide?
What are the top 5 priority services?
What is the required expenditure reduction in Council arising from rate capping?
How will Council make comparative choices between services?
Reduce levels of service or reduce capital?
What is the strategy to engage the community?
What is the end game – open government?

4. Simplified Strategic Framework
VISION
SERVICES
ASSETS
What outcomes does Council want?
What outcomes do the community want?
What are the best management practices?
MANAGEMENT
What services are required to meet the vision?
What assets are required to support the services? 4

5. Influences VISION Community Engagement SERVICES ASSETS MANAGEMENT LTFP
SRP
Budget
Community Engagement
People are becoming:
More connected;
More informed;
Less willing to accept other people’s choices; and
Want to be more involved.
Financial Sustainability
Community Planning
Service Planning
Levels of Service 5

6. $ The Value of our Spend How do we decide? All Services
Capacity to deliver services in a revenue constrained environment $
How do we decide?
All Services
Discretionary Services
“like to do”
Efficiency Gains
Business as Usual
Preferred Services
“should do”
Mandatory Services
“must do”
Time
PAGE 6 6

7. Customer Focused Service Delivery- the end game?
Consumer determines their own spending priorities based on need within financial constraints.
Council’s future service model
Customer Choice
4. Facilitate a ‘market’ of service providers to meet preferences of individual users
3. Promotes and regulates a ‘market’ of service providers reflecting the preferences of users through community groups
Transformation Change Continuum
2. Facilitates a network of service delivery options
1. Council determines what should be provided and how based on local priorities.
Under threat as revenue growth becomes constrained
Council’s traditional service model
Acknowledgement: Prof Helen Sullivan, Melbourne University – FOLG Conference 2015

8. Financial Challenges – LG sector

9. Council Finances

10. Most Councils lose 1 years rate revenue in 10.
Rate Capping Impact
Most Councils lose 1 years rate revenue in 10.
What is your Council’s position?
PAGE 10 10

11. Councils response to Rate Capping
17 Councils reduced future rate increase to less than 3%
Remaining Councils retained rate increases into the future (Average ~5%)
How will your Council manage the reduced income?
Services or Assets; or
Good Management

12. Salaries and Wages Average Salary increase next 4 years (pa) 4.2%
Salary cost as a percentage of Rate Income
61.6%
Rate Increase required to cover Salary Increases (p.a.)
2.6%

13. Capital Works Capital Works Capital Works 2015/16 Budget ($,000)
Renewal
$1,088,874
New, Upgrade, Expansion
$1,268,032
Total Capital Works
$2,356,906
Property Plant and Equipment
$74,403,808
Depreciation
$1,340,033
Depreciation Rate
1.80%
Operations & Maintenance Costs
1.20%
Additional Expense - New CW Depreciation
$22,824
Additional Expense - New CW O & M
$15,216
Rate & Charges Income
$5,202,833
Percentage of Rates – New Cap Works
0.73%
Total Percentage of Rates – New Cap Works & Salaries
3.33%

14. Financial Sustainability Assessment
Services
(??)
LTFP
Assets
(AM Plans
Renewal Programs
CW Programs)

15. Expenditure Management
Capital Works Evaluation
and Asset Management
Business Process Improvement
Service Planning
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16. Essential Services Commission

17. Rate Cap Variation (ESC)
Councils can apply for a variation to the rate cap, but need to address :
The reason a variation from the cap is required;
Whether the application takes account of ratepayer and community views;
Whether the variation represents good value-for-money and is an efficient response to the budget requirement;
Whether service priorities and funding options have been considered; and
Whether the proposal is integrated into the Council's long term strategy.

18. Engagement Principles (ESC)
Principle 1 - The engagement program must contain clear, accessible and comprehensive information and follow a timely process to engender feedback from the community
Principle 2 - The engagement program should be ongoing and tailored to community needs
Principle 3 - The engagement program should prioritise matters of significance and impact
Principle 4 - The engagement program should lead to communities becoming more informed about council decision-making

19. Service Planning

20. Define the current range of services
Key Outcomes
Define the current range of services
Define the current levels of service
Ascertain the true cost of each service
Service costs linked to LTFP
Financially sustainable service driven organisation

21. Sustainable Service Delivery
Key questions:
What are the current services that Council provides to the community?
Is the current service delivery model sustainable?
Is Council delivering the most appropriate services to the community within its financial capacity?
Is Council delivering these services in the most efficient manner?

22. Service Planning Information
LTFP drives Services
Services drive LTFP
Services
Capital Works
(New/Upgrade)
Asset Renewal
LTFP 1 5 10 15
YEARS

23. Service Planning Fit Financial Sustainability Service Management
COUNCIL PLAN
Financial Sustainability
Service Management
Service Strategies
Strategic Resource Plan
Service Planning
Service Plan Reviews
Long Term Financial Plan
Service Comparative Choice Evaluation
Service Summaries
Service Operations
Capital Works (New, Upgrade, Expansion)
Capital Works Evaluation
Capital Works Program
Asset Management
AMP (Roads)
AMP (Drainage)
Capital Works (Renewal)
AMP (Buildings)
Infrastructure Operations & Maintenance
AMP (Bridges)
AMP (Open Space)

24. Revenue / Expenditure

25. Service Planning Stage 1
Stage 1 - Capture Knowledge for a Comparative Choice (Relative Importance) and Sustainability Assessment
Parks
Parks
ICT
ICT
Road Maintenance
Road Maintenance
Youth Services
Youth Services
Environmental Health
Environmental Health
Regulatory Services
Regulatory Services
Children’s Services
Children’s Services
Aerodrome Management
Aerodrome Management
Aged Services
Aged Services
Statutory Planning
Statutory Planning
Other Services
Other Services
Stage 1 - Summary Service Profile for each Service (Tactical Level)
All Council Services
Later Stage - Detailed Service Plan for each Service (Operational Level)
Later Stage - Service Reviews (Efficiency)
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26. Scoring Assessment - Council

27. Scoring Assessment - Community

28. Service Profiles
PAGE 28

29. 10 Year Service Costs

30. Service Scoring

31. Sustainability Assessment
PAGE 31

32. Long Term Financial Plan
PAGE 32

33. Standard Reporting

34. Community Satisfaction versus customer satisfaction
Challenges
Community Satisfaction versus customer satisfaction
Documenting actual range and levels of service on a business as usual basis
Moving from finance driven services to levels of service properly costed and agreed;
Community Engagement and Involvement
Organisational Change and culture
Base Data – Assets, classifications
Standards and benchmarks for “comparative choices”
Ultimate alignment to Council Plan
Maintaining a sustainable pathway

35. Community Engagement

36. Community Engagement Drivers
Good Governance
Ensure alignment with community / key customer group needs
Target Council’s investment and effort to areas of highest community need
Community Expectations
Many community members now want to participate in the decisions that influence their lives
Legislation – Local Government Act
Role of Local Government
Rate Capping (Essential Services Commission)
“.. Whether the application takes account of ratepayer and community views…”

37. Current Community Engagement
Council Plan
Municipal Public Health and Wellbeing Plan
Municipal Strategic Statement
Other Council Strategies
Community Plan(s)
Community Engagement
Evidence Based
Prepare within 12 months of Election
Review Annually
Aligned to State Government Plan
* MPHWB Act
Prepare within 6 months of Election
4 years forward look - Includes SRP
Review Annually (Good Practice)
Submit to State Government
* LG Act
Review within 12 months of Council Plan
Must be consistent with Council Plan
Further the objectives of Planning in Victoria
* P&E Act
Community Plan numbers range from 0 to 35
Other Council Plans
Other Council Operational Plans
Good Practice - Review at least every 4 years
Council 1 – Large Metro – 77/305 Strategies, Plans and Policies
Council 2 – Provincial City – 75/172 Strategies, Plans and Policies

38. IAP2 Public Participation Spectrum
Inform
(to impart information)
Consult
(to seek advice or information)
Involve
(to engage or include as participants)
Collaborate
(to work together)
Empower
(to invest with legal power, to authorise)
Community driving us in this direction
Most Council’s Engagement Strategies are based on this model

39. Community Engagement Strategy
What level of engagement is required ?
Inform : One way communication providing balanced and objective information to assist understanding about something that is going to happen or has happened.
Consult : Two way communications designed to obtain public feedback about ideas on rationale, alternatives and proposals to inform decision making.
Involve : Participatory process designed to help identify issues and views to ensure that concerns and aspirations are understood and considered prior to decision making.
Collaborate : Working together to develop understanding of all issues and interests to work out alternatives and identify preferred solutions.
Empower : Providing opportunities and resources for communities to contribute to solutions by valuing local talents and skills and acknowledging their capacity to be decision makers in their own lives.
Based on International Association for Public Participation (IAP2) model

40. Community Engagement Strategy
How do you engage ?
Inform
Consult
Involve
Collaborate
Fact Sheets
Web sites
Public comment
Focus Groups
Surveys
Social Media
Workshop
Deliberate polling

41. Engagement Matrix

42. What is the strategic end game ?
Open Government
Open Data
Open Services
Open Decisions
Transparency
Collaboration
Participation
Source: A vision for public services, European Commission (2013)

43. www.ctman.com.au THE HON. JEFFREY KENNETT A.C. Chairman
MICHAEL COURTNEY Managing Director E:
DIANA TAYLOR Executive Director E:
IAN MANN Executive Director E:
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