Does financial sustainability affect local resident satisfaction? The case of the Victorian local government system

2021 ◽  
pp. 1-9
Author(s):  
Carolyn-Thi Thanh Dung Tran ◽  
Brian Dollery
Author(s):  
Paula Gomes dos Santos ◽  
Carla Martinho

Public governance must ensure financial sustainability. This investigation aims to assess Portuguese local governments financial sustainability as the ability to service the upcoming obligations in commercial transactions (under the Late Payment Directive framework) and to study if accounting information enables public local governance with greater transparency and accountability about their financial sustainability. The study will focus on the 308 Portuguese local governments from 2009 to 2017. The number of local governments with average payment periods (PMPs) within 30 days had an increasing tendency. However, their adjusted average payment periods greatly exceed the 30 days, which means limited financial sustainability. In 2017, only 29% of the local governments have an adjusted PMP within 30 days against the 63% if it is used the officials PMPs. Therefore, accounting information does not enable public governance with greater transparency and accountability about Portuguese local government financial sustainability.


Author(s):  
Fabio De Matteis ◽  
Daniela Preite

After highlighting the breadth and complexity of the concept of sustainability and highlighting the role of local authorities in sustainable development, this chapter aims to interpret how sustainability management can consider the concept of financial sustainability in the context of local governments. It does this through the following specific objectives: 1) defining financial sustainability, considering it not only autonomously, but in an integrated manner with respect to the typical sustainability dimensions (environmental, social, and economic) that are usually involved in the local authorities activity; 2) proposing the main stages of the sustainability cycle in the local authorities to highlight the key moments and the role of financial sustainability; 3) analyzing some aspects of financial indicators as tools for measuring the financial side of the sustainability profile of a local government. In order to reach the aim of the chapter, the research methodology followed is the literature review.


2013 ◽  
Vol 12 (1) ◽  
pp. 31-54 ◽  
Author(s):  
Manuel Pedro Rodríguez Bolívar ◽  
Andrés Navarro Galera ◽  
Laura Alcaide Muñoz ◽  
María Deseada López Subirés

In the present context of international public finance crisis, the analysis of government sustainability is considered of vital importance, and a significant element in this is the accounting measurement of intergenerational equity. The aim of this paper is to identify factors that may influence the financial sustainability of local government, doing so through the analysis of 116 local administrations in Spain. Based on Pearson correlation analysis, our main findings show that the annual budget result is a key determinant of local government financial sustainability, and highlight the value of controlling the balance of budget expenditures in preventing future problems of viability for these local authority services.


2016 ◽  
Vol 14 (3) ◽  
pp. 279-302 ◽  
Author(s):  
Paulo Caldas ◽  
Brian Dollery ◽  
Rui Cunha Marques

How to evaluate local government or what really matters concerning local government evaluation and who cares about it are questions which are on the table currently across the world. This paper carry out a survey on the wide range of indicators and evaluation models of local government used worldwide and shows that they are based mainly on performance evaluation and financial sustainability ratios. We conclude that they address only part of the problem of strategic management, financing, and sustainable development issues of local government. In particular, the governance dimension is absent. Therefore, a broader vision is proposed that integrates our usual local government evaluation into the important issues of governance and sustainability. This article focus on “measuring what matters” in local government and presents the need of a new evaluation model, a Councils’ Sustainability Index, based on the integration of council’s financial performance with communities’ sustainability and governance dimensions. Thus, it might be an important contribution for the creation of a new paradigm on local government evaluation and councils’ strategic management. The Portuguese case is used to illustrate this purpose.


Author(s):  
Emily Killin ◽  
Alan March

The increasing responsibility of the local government sector to provide and maintain a range of infrastructure is threatening its financial sustainability. The ‘development contributions’ system is one measure adopted by local government in Victoria, Australia to assist in the funding of infrastructure required as a result of new development. The development contributions system is intended to be used state-wide, but in practice the majority of development contributions have been collected in just seven Melbourne municipalities associated with greenfield development. In July 2012 the Victorian state government announced reforms to the system, which were eventually enacted in October 2016. These reforms are considered in this paper. Using two case studies of Hume City Council and Surf Coast Shire Council, this paper assesses the effectiveness of the new funding system for infill development in the Melbourne area. The findings suggest that the historic path dependency of the system has resulted in a missed opportunity as the new system remains fundamentally designed for greenfield development rather than highly important infill development.


Author(s):  
Ian Tiley

For decades, sustainability and, especially, long-term financial sustainability and transformation, primarily through structural and other modes of reform, have constituted major concerns and problems for the ‘grass roots’ Australian government. Usually the catalyst for change in these areas has emanated from state and territory jurisdictions which have imposed reforms, often with little regard for local councils or the communities they serve. Since August 2011, in New South Wales, a structured process of dialogue and consultation has been ongoing in the local government sector with the objective of implementing beneficial reform. The paper briefly explains this transformation initiative and particularly the NSW Government Fit for the Future (F4F) process and the current 35 council merger proposals. The process is considered from the perspective of a long-term local government practitioner, elected representative, Mayor, and former member of the NSW Local Government Acts Taskforce (LGAT).


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