Andrew K Johnson akjohnson.au

1. Managing The Community Expectation Gap As stated, my name is Andrew Johnson and I am the Director of Finance & Administration @ Guyra Shire Council. I have also worked in similar position @ Central Darling Shire Council & the District Council of Kingston. Today I wish to discuss the Management of the Community Expectation gap (being the gap between the services that the community expect of local government and the recourses available to Councils to fund these expectations). Feel free to raise any questions or provide any comments as we go. As stated, my name is Andrew Johnson and I am the Director of Finance & Administration @ Guyra Shire Council. I have also worked in similar position @ Central Darling Shire Council & the District Council of Kingston. Today I wish to discuss the Management of the Community Expectation gap (being the gap between the services that the community expect of local government and the recourses available to Councils to fund these expectations). Feel free to raise any questions or provide any comments as we go.

2. The Key Challenge for Local Government I ask you to think a monument about the following problem that confronts Local Government (Text Box) My presentation today will be bases on an exert from a thesis I am preparing as part of a doctorate centred around meeting community expectations, and answering this question (point to Board) I do not pretend to have all the answers and welcome any comments, suggestions or criticism. I ask you to think a monument about the following problem that confronts Local Government (Text Box) My presentation today will be bases on an exert from a thesis I am preparing as part of a doctorate centred around meeting community expectations, and answering this question (point to Board) I do not pretend to have all the answers and welcome any comments, suggestions or criticism.

3. Current & Future Expectations of Government Current Expectations Ensure their health, safety & enjoyment of property Public & Merit Goods Services to property Increasing Duty of Care Changing Focus of Expenditure REFER ATTACHEDREFER ATTACHED

4. Pressures Affecting Local Government REFER ATTACHEDREFER ATTACHED

5. The Expectation Gap Societies Economic Dilemma The situation facing Local Government can be summarised as follows; �Local government is facing increasing expectation of it, both from the community they serve and from other levels of government; �At the same time local government is suffering a deterioration in its financial capacity What we all know is that what the community and governments expect from local government is far more than we have the resources to fund. This situation is referred to as a funding or expectation gap and as, previously stated, is defined as (Show Slide) Managing the expectation gap is considered one of the key objectives of local governmentThe situation facing Local Government can be summarised as follows; �Local government is facing increasing expectation of it, both from the community they serve and from other levels of government; �At the same time local government is suffering a deterioration in its financial capacity What we all know is that what the community and governments expect from local government is far more than we have the resources to fund. This situation is referred to as a funding or expectation gap and as, previously stated, is defined as (Show Slide) Managing the expectation gap is considered one of the key objectives of local government

6. Managing the Expectation Gap Reducing Expectation to a realistic (attainable) level; and There are two part to Managing the expectation gap. The First is to manage expectations; that is to ensure that the expectations of local government are realistic and attainable. The second part involves obtaining additional resource (internal and external) to provide funds required to increase the amount of expectations that can be met There are two part to Managing the expectation gap. The First is to manage expectations; that is to ensure that the expectations of local government are realistic and attainable. The second part involves obtaining additional resource (internal and external) to provide funds required to increase the amount of expectations that can be met

7. Managing Expectations Community Education and Involvement Distinguish need from wants Priorities needs User Charges and Opportunity Costs Community Surveys Managing community expectations involves (Show Slide) individuals have unlimited wants but society only has limited resources to meet these wants. Therefore, it is unrealistic to anticipate that all expectations can ever be met. � The needs of the community must be distinguished from their wants. User charges and opportunity costs can be used (where appropriate) to reduce expectations to those services and activities that are really needed by the community Community surveys are a good way of identifying relative needs and priorities together with the level of satisfaction with existing services. Need to work with the community to obtain mutually acceptable outcomes and to determine priorities and trade offs. Managing community expectations involves (Show Slide) individuals have unlimited wants but society only has limited resources to meet these wants. Therefore, it is unrealistic to anticipate that all expectations can ever be met. � The needs of the community must be distinguished from their wants. User charges and opportunity costs can be used (where appropriate) to reduce expectations to those services and activities that are really needed by the community Community surveys are a good way of identifying relative needs and priorities together with the level of satisfaction with existing services. Need to work with the community to obtain mutually acceptable outcomes and to determine priorities and trade offs.

8. Community Involvement In broad terms, it is believed that councils need to ensure that its community has an understanding of: How the community can provide input into the decision making process of council; How they can be involved in the operation of the council; What standard of service the council aims to provide; How to make complaints to the council; Details of the source and application of council�s income; The legislative restrictions on council�s operation; The council�s decision making process; of the services provided, their objectives, usage, costs, and performance; and Details as to what they are entitled to. Community education is critical because Difficult task, overcome ignorance Community involvement and education is considered to be a vital element in the endeavour of councils to meet the expectation of its residences. Local government should first educated the community in their operations and the challenges they face, and then involved these people in the decision making process of the council. Community education is considered fundamental to ensuring the good decision making function of council is undertaken, as educated people make better, more well informed, decisions. � Citizens with a better understanding of local government, and the belief that their public officials are genuinely trying to improve performance, are less likely to want to constrain their officials through severe tax or expenditure limitation measures (Epstein 1984). Public education can also instil confidence in the operation of municipal authorities, and provide the Council with an opportunity to explain the organisation�s goals and objectives. Citizen consultation is believed to be critical in identifying the needs, priorities, concerns, aspirations and satisfaction of the public, as well as encouraging greater acceptance of the policies and decisions of council. Also, once you have the community on side, use them as an alia to lobby government for action or additional funds Community education is critical because Difficult task, overcome ignorance Community involvement and education is considered to be a vital element in the endeavour of councils to meet the expectation of its residences. Local government should first educated the community in their operations and the challenges they face, and then involved these people in the decision making process of the council. Community education is considered fundamental to ensuring the good decision making function of council is undertaken, as educated people make better, more well informed, decisions. � Citizens with a better understanding of local government, and the belief that their public officials are genuinely trying to improve performance, are less likely to want to constrain their officials through severe tax or expenditure limitation measures (Epstein 1984). Public education can also instil confidence in the operation of municipal authorities, and provide the Council with an opportunity to explain the organisation�s goals and objectives. Citizen consultation is believed to be critical in identifying the needs, priorities, concerns, aspirations and satisfaction of the public, as well as encouraging greater acceptance of the policies and decisions of council. Also, once you have the community on side, use them as an alia to lobby government for action or additional funds

9. Meeting Expectations Satisfaction Gap Analysis Service Matrix Generating Additional Revenue (internal & External) User Charges v General Purpose Revenue Accountability & Transparency Efficiently, Effectiveness & Best Value REFER ATTACHEDREFER ATTACHED

10. Satisfaction Gap & Service Matrix � � � � �

11. Best Value The Victorian Best Value approach is based on the following principles: All services must meet quality and cost standards; ؠ�All services must be responsive to community needs; ؠ�A service must be accessible to those for whom it is intended; ؠA council must achieve continuous improvement in its provision of services; ؠ�A council must develop a programme; ؠOf regular consultation with its community in relation to the services it provides; and A council must report regularly, at least once a year, on its achievements to its community in relation to the Best Value Principles I believe one of the key problems with local government is that it has a poor image and perceptions. Both the community and other governments are reluctant to provide additional funding as they perceived that it will be wasted and they will not achieve value for money. As an industry we need to change this perception, be proactive and promote our successes and display that we are providing value for money services or best value. Extensive benchmarking of services is required.I believe one of the key problems with local government is that it has a poor image and perceptions. Both the community and other governments are reluctant to provide additional funding as they perceived that it will be wasted and they will not achieve value for money. As an industry we need to change this perception, be proactive and promote our successes and display that we are providing value for money services or best value. Extensive benchmarking of services is required.

12. Recommendations Must measure monitor, manage and reduce the expectation gap Report in Management Plans factor effecting Council�s ability to meet expectations Educate and involve the community in the decision making process Expand Section 48(2)(d) requirements to included services All it not lost and I do not pretend to have all the answers, but here goes. The expectation gap is believed to be one of the major issues facing local government. The expectation gap should be measured, monitored, managed and ultimately reduced. Various strategies can be followed to achieve this. Council�s need to put pressures on those that restrict our activities. This can be done by publicly stating in Management plans and Annual reports the cost to the community of these restrictions. All it not lost and I do not pretend to have all the answers, but here goes. The expectation gap is believed to be one of the major issues facing local government. The expectation gap should be measured, monitored, managed and ultimately reduced. Various strategies can be followed to achieve this. Council�s need to put pressures on those that restrict our activities. This can be done by publicly stating in Management plans and Annual reports the cost to the community of these restrictions.

13. Recommendations (Cont.) Report on consequence of revenue and expenditure restrictions Effect of Reduced Grants & Rate Pegging on the Community Cost Shifting by State/Federal Governments Effect of increase in Employee Costs & Insurance Costs Improve the Image & Perception of Local Government Cooperative Approach between Local Government, the community, private sector & other levels of Government Put in easy to use language the effect of the restrictions on local government. Ie if these restrictions did not exist we would be able to seal xkm of road or enclose a pool etc and build some resentment and achieve some reaction from the ratepayer. We all, and by all I mean Council�s, other levels of government and the community are seeking to achieve the same thing, improve every ones quality of life, so why argue and place restrictions on achieving this objective and work together. No I�ll come out of my dream world and back to reality.Put in easy to use language the effect of the restrictions on local government. Ie if these restrictions did not exist we would be able to seal xkm of road or enclose a pool etc and build some resentment and achieve some reaction from the ratepayer. We all, and by all I mean Council�s, other levels of government and the community are seeking to achieve the same thing, improve every ones quality of life, so why argue and place restrictions on achieving this objective and work together. No I�ll come out of my dream world and back to reality.

14. Further Information www.akjohnson.com.au External Revue Pressures External Expenditure Pressures More to Come Finally, for more information on this topic, or to review a number of other papers I have written on local government, or for detail on my thesis, please visit my web site located at akjohnson.com.au Any questions. Finally, for more information on this topic, or to review a number of other papers I have written on local government, or for detail on my thesis, please visit my web site located at akjohnson.com.au Any questions.