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Published on 29 June 2023

Long-term financial sustainability for councils

Glen Eira City Council has welcomed a Victorian Auditor-General’s Office (VAGO) commitment to investigate the long-term financial sustainability of local government.

Announced as part of its 20232024 annual plan, VAGO will assess whether councils effectively manage their financial resources to fulfil their responsibilities and enable continued financial sustainability.

For months, Glen Eira Mayor Cr Jim Magee has called for a stronger focus on the long-term financial sustainability of councils.

Through an ongoing campaign that has included media appearances, a successful motion at the Municipal Association of Victoria (MAV) State Council, and conversations with councils across Victoria, Glen Eira has put the issue of financial sustainability firmly on the Victorian Government’s radar.

The VAGO annual plan follows an announcement that the Victorian Parliament’s Legislative Council Economy and Infrastructure Committee will investigate local government funding and service delivery in 20232024.

The Legislative Council inquiry will look at cost shifting from other levels of government to local councils, the ability of councils to meet core service delivery objectives, local government revenue, and alternative funding models.

Cost shifting is where other levels of government reduce payments to councils for critical services such as libraries and maternal and child health services, expecting councils to pay more.

For more information about Council’s advocacy agenda, visit our advocacy webpage.

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