WATC has developed a Local Government Authority Sustainability Model (Model) to help LGs evaluate their solvency and sustainability.
The financial Model provides LGs with the ability to assess how adjustments to the following might impact their financial position over a future 10-year period:
- current rating structures;
- usage of reserves; and
- planned capital expenditure programs.
The Model takes the long-term financial plan (LTFP) and actual financial data of a local government – submitted to WATC as part of regular accounting and reporting – as a starting point to provide a 10-year forecast of financial performance.
The Model then provides the local government with the capability to adjust key financial “levers” and consider a range of scenarios, in order to assess long term outcomes, solvency and sustainability.
Further information on the financial Model is available on the Department’s website.
WATC are the lead agency implementing the roll-out of the Model and will be supported by:
- Department of Local Government, Sport and Cultural Industries
- WA Local Government Association
- Local Government Professional WA
Participating LGs will be supported to use the Model based on their financial capabilities.
Roll-out will occur in two phases based on local government capability, financial vulnerability and the building of a network of ‘champions’ to support the broader implementation process.
LGs can register to participate by contacting:
Senior Project Officer
Department of Local Government Sport and Cultural Industries
Phone: (08) 6552 1422
Local governments are requested to express their interest in participating in the model by Friday 21 July 2020 to allow support resources to be effectively allocated.