Income streams: Moira Shire Council will be participating in an upcoming national survey run by Rural Councils Victoria.
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Rural Councils Victoria, a peak body representing rural communities, is undertaking a national survey to discover new ways for cash-strapped councils to find new income streams.
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RCV has engaged consulting firm SGS Economics and Planning to undertake the research, which will explore rural councils’ financial stability and identify alternative income sources.
They will survey all councils across Australia to identify “own-source” income options outside rates, fines, fees, grants and contributions; the options can be ones in use or available opportunities to support a local government’s financial stability.
Moira Shire Council has stated it will be participating in the survey.
Council chief financial officer Matt Jarvis explained opportunities for other council-controlled income outside of standard streams were “somewhat limited”.
“As long as these streams are reliable, yes, but the main focus of regular income streams would be to ensure financial sustainability first; for example, operations are fully funded before projects are undertaken,” he said.
“The Local Government Act 2020 (section 110) does give scope for councils to participate in beneficial enterprises, which includes entering into a joint venture. Moira Shire Council has utilised this model for the Creekside Estate development in Nathalia.”
Mr Jarvis cited appropriately qualified staff including project managers and design engineers, as well as contractor capacity as additional factors.
Looking for alternatives: Moira Shire Council chief financial officer Matt Jarvis says money forms only one part of innovative income streams and their options.
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Megan Fisher
“Money is only one aspect,” he said.
“There is already a commitment to identify alternate income streams and any research relating to this would be welcomed.”
Rural Councils Victoria chair Mary-Ann Brown said councils would like to be more independent, in the sense of not relying on other levels of government for funding.
“If we can identify other sources of income over which councils have control, that would be a very good outcome for communities and councils,” she said.
“We really need to try to get away from the cap-in-hand or begging-bowl approach.”
She explained that while government support was always welcome, it was highly conditional and often insufficient, and could not be spent on what communities actually required.
“No two councils are identical, but we believe that this research can help unearth innovative ideas that can be used by councils across Australia to bring in some of the funds needed to serve our communities better,” she said.
“The research results will be shared so that every council in the country, whether rural, regional or municipal, can potentially benefit from the research they helped deliver.
“Not every idea will work for every council, but councils must do something to alleviate the pressure on ratepayers at a time of increasing interest rates and surging inflation.”
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