Local governments are being asked to do more than ever, deliver essential and emerging services, all while budgets tighten and community expectations rise. Over the past year, I’ve seen and heard this challenge play out firsthand through council deliberations which, at their heart, focused on how councils can make responsible financial choices that deliver the greatest value.
The recent Inquiry into Local Government Funding and Services laid it out clearly: Victorian councils are under intense pressure to meet community expectations while staying financially sustainable – all within the limits of rate capping, rising costs and growing cost-shifting from other levels of government. This has created significant challenges for councils when providing services. While councils must legally deliver certain services, most of what councils provide isn’t mandated by law but is expected by the community, such as libraries, building permits, and sporting facilities.
What really interests me is how communities form expectations about what councils should provide and how councils can manage those expectations when resources are limited, and every investment requires careful, strategic consideration. What’s clear is that tough trade‑offs are coming and communities expect to be part of the conversation.
Conversations beyond roads, rates and rubbish
Community expectations of local government have shifted. Councils are no longer seen as providers of only “roads, rates and rubbish.” They are advocates for their communities, shapers of local identity and culture, and often the providers of services where the market or other levels of government fall short. While this broadening of scope reflects what communities value, it’s creating even more pressure on already stretched budgets.
Community needs and expectations aren’t static, they shift as priorities change, and new challenges emerge. What was essential a decade ago, or even a few years, might look very different today. That’s why communities must be at the centre of decision-making – they bring their experiences as the users of council services.
Communities expect to be a part of these conversations. The engagement can’t be standalone, but requires a broader, ongoing process to involve communities in shaping decisions. It should start early and be inclusive and transparent. The challenge is not whether to involve communities in these conversations but how to do it meaningfully. How to create opportunities for dialogue that genuinely explore whether services, including the budget, service levels and quality, meet community expectations.
Readiness matters – it’s the work before the work
Before engaging communities, councils need to be ready for these important conversations. Readiness isn’t just about having the right engagement tools or frameworks, it’s about internal alignment – a shared understanding of why these conversations matter, and how the community can work with council to achieve better outcomes.
Engaging about services, service levels, budget and trade‑offs isn’t simply a compliance exercise. When done well, it creates space and time for dialogue and debate that explores needs, priorities, and the complex balancing of cost, equity, and service levels.
Engagement done well helps ensure services are shaped by lived experience and local knowledge. It builds legitimacy and trust when councils need to make difficult decisions.
A structured way forward for informed decisions
In my experience, I’ve found that a structured approach can help councils navigate these complex conversations with clarity and confidence.
- Define the services and build a shared understanding
Creating a shared understanding about the services council delivers reduces confusion and creates a strong foundation for future discussions, including those with councillors and the community. Developing a service catalogue is a great place to start engaging with internal stakeholders.
A comprehensive service catalogue sets a common language across the organisation about what constitutes a service, why council delivers it, who benefits, how it’s linked to the council plan, the cost of the service, how it’s funded and how it’s reported on.
A catalogue is a good communication tool and can be shared alongside other engagement such as the budget or long-term financial plan. It shares how council is committed to delivering quality services, demonstrates transparency and explains how council delivers services within the constraints of limited revenue sources.
- Decide what needs review and how
Councils need strong, ongoing processes for planning and reviewing services to make sure they still deliver value for money and align with what the community needs and expects. That means working with the community to decide how resources are prioritised, and how to balance service delivery with responsibilities like maintaining assets and delivering capital works.
With the foundation of internal discussion and a catalogue the next decision point is about the services that need to be reviewed or reconsidered to determine if they still deliver value for money and reflect what the community needs and expectations. This process could include:
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- identifying priorities e.g., which services require a review
- deciding whether reviews are once‑off or part of a rolling program
- considering whether some services could be delivered by another provider
- exploring exiting certain services.
It’s also the stage to plan engagement – deciding when and how to involve the community in ways that are timely and meaningful.
- Engage the community
How the community are engaged will depend on the services in question and the council’s objectives.
It’s essential that all voices, especially those most impacted, are included in the conversation. Engagement methods should align with the engagement objectives and be tailored to suit the needs of the community. Some techniques to consider are:
- surveys to explore values, priorities, and willingness to pay
- focus groups for deeper insights from specific cohorts, and
- deliberative processes for complex trade‑offs.
However, the community are engaged the most important thing to remember is that transparency is your superpower. This is not a tick-the-box, exercise – in processes like these, effective planning and reporting are crucial to showing accountability and building trust.
Turning tough choices into lasting change
Councils are at a crossroads. Balancing community expectations and aspirations with financial sustainability isn’t easy, but it is achievable when councils and communities come together to co‑create solutions. These conversations are not just about service provision or budget allocation; they’re about shaping the future of local places and building stronger, more resilient communities.
Facing up to this challenge is more than service planning – through collaboration, honest dialogue, and shared ownership, these decisions have the potential to become a legacy for the communities they serve.
Reach out, we help councils get aligned and prepared to engage communities to get clear insights to make informed choices with limited resources.
Eleanor is a Senior Manager at Insync. She designs inclusive engagement that is practical and tailored to the project, organisation and community.
Insync is entirely dedicated to strengthening democracy. We help governments, especially at the local level, make big decisions that reflect the voice of the people, fostering trust in institutions while empowering communities to actively participate in and shape the democratic process. Find out more at insync.com.au
