As inflation continues to bite and communities are feeling the cost-of-living pinch, councils are not immune from the economic challenges impacting decision making around maintaining assets, funding new projects, and extending budgets to go further with less.

Local councils via ALGA lobbied for ‘fair increases’ to existing grants, which were disappointingly not adopted as part of this year’s Federal budget. The $3 billion in Financial Assistance Grants over the next 12 months will be welcomed by Australia’s 537 councils, but councils will inevitably be tasked with doing more with less.

There can be very significant long-term implications from not maintaining and upgrading current infrastructure at the right time. Which is why councils should be constantly making investment decisions that balance current and future community demands, service levels, risk and lifecycle costs.

So how can councils work smarter, not harder without compromising the needs of the community?

Less ribbon cutting, more informed decisions

Local councils need to know what they have, why they have it, and what they are going to need to provide into the future to make informed investment decisions to improve community outcomes. The focus needs to be on investing in a way that ultimately maximises what is always going to be a constrained amount of available funds.

Finding the balance between new infrastructure projects and maintaining existing ones is critical. Infrastructure spending is an important part of budgeting for local councils, and it shouldn’t be an either, or. Assets new or existing should not be ‘competing’ with each other for funding – yet too often councils are left with no choice but to choose one or the other.

Proactive planning, reduces risk of cost blowouts

Which is why taking a holistic approach to a council’s asset portfolio is instrumental in making smarter decisions. By deploying resources more effectively, councils can proactively address maintenance backlog and minimise unexpected surprises.

A comprehensive asset management strategy involves assessing the entire portfolio, playing out scenarios, and prioritising projects based on urgency and impact. This approach allows councils to allocate funds where they are most needed, reducing the likelihood of costly emergency repairs, interruptions to services, or safety risks for the community.

Further, integrating advanced asset management solutions that increasingly leverage IoT devices and AI, can provide a detailed overview of all council-owned properties and infrastructure, enabling council managers to track the health of assets, predict when maintenance will be needed, and budget and plan resources accordingly. By being proactive rather than reactive, councils can extend the life of their assets and optimise their use of limited financial resources.

Engage a professional managed service provider

Another effective tool is the use of professional services providers to identify and bridge organisational gaps. It may seem counterintuitive to hire a service provider when purse strings are tight – but it’s important to consider the efficiency gains of hiring professionals. These services can create greater efficiencies and avoid double handling of tasks. Managed services providers can offer expertise in areas where councils may lack internal resources or experience. They can assist with everything from financial planning and risk management to IT support and asset maintenance.

By outsourcing specific functions, councils can focus on their core responsibilities while benefiting from the specialised knowledge, best practice adoption, and scale of external experts. For example, a managed service provider could help streamline procurement processes, ensuring that councils get the best value for their money. They could also implement more efficient systems for managing council operations, reducing waste, and improving overall productivity.

Don’t underestimate the power of data

Data is the new oil. Establishing a digital twin of your asset portfolio can help deliver insights to local councils in real time that can be critical for optimal decision making and balancing the books. And coupled with simulation technology, can project forward the future performance and condition of assets, to foster accurate long-term planning.

By consolidating information into a single, accessible platform, councils can make data-driven decisions that enhance efficiency and effectiveness. This centralisation enables easier access to critical information, fostering better communication and collaboration across departments.

With real-time data, councils can quickly identify trends and potential issues, allowing for timely interventions. For instance, if a particular type of asset shows signs of frequent failure, the council can investigate and address the root cause before it becomes a widespread problem.

Additionally, having a centralised knowledge base can facilitate transparency and accountability, as all stakeholders have access to the same information and can track progress and outcomes.

Unquestionably, it’s a challenging time for councils, but there are ways to navigate the choppy waters without going under. By adopting new approaches, technology, and adapting to the conditions, councils can implement strategies that maximise the limited resources and continue to deliver high-quality services to their communities.

For more information, visit brightlysoftware.com

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