Necessity drives innovation: How councils are thinking differently to tackle shared challenges

The shared challenge

There’s been a lot of talk over the last few years about local government’s financial sustainability challenges – and rightfully so. If councils can’t pay for the services they provide, they simply won’t be able to deliver them for their communities in 20, 10, or perhaps even a few years. For many of us, the pressure is significant. 

Whether you’re a capital city or a rural council, the weight of rising community expectations, changing perceptions of local leadership, cost shifting from other levels of government, and rampant inflation can feel like an uphill battle. In Glen Eira, this pressure necessitated a different approach - a tough reality check and a frank conversation with our community. Most importantly, they showed we couldn’t keep tackling the same challenges in the same way. We had to think big to solve big problems. 

In 2023, as we poured over our financials, we decided we needed to lean in.  We had to gain ground in our cash position and were running some highly valued services in the red. We needed to be honest about the challenges, identify some of the immediate remedies, and then use this as the starting point for a conversation with our community.

This conversation – to learn what the community’s priorities are in a financially constrained environment, and how they think we can make savings or raise revenue to pay for them – ended up being our biggest ever over many months. We heard from thousands of community members through a variety of means and received nearly 2,000 survey responses. We engaged a deliberative panel of 35 community members who reflected Glen Eira’s rich diversity.  We provided them with all the information we had and then asked what their recommendations were. 

To the surprise of many, the community didn’t sound the alarm. In fact, they rewarded us for our transparency. They participated, giving us valuable insights (and candid feedback!). This was a gift, as it helped us to ensure we had our priorities in the right order and that they genuinely reflected community sentiment. While this didn’t make other challenging conversations – like closing three of our childcare centres – any easier, it did provide a sounding board for good decision making. 

The case study: In-home and social support services  

Then came another service delivery challenge that forced us to think creatively.  

Traditionally, councils like ours have delivered in-home aged care services, funded in part by the Australian Government. However, reforms announced following the Royal Commission into Aged Care Quality and Safety have made the current model financially unsustainable for many councils. 

While some Victorian councils have exited aged care services entirely, we knew that our community highly values council-delivered services and clients of these services highly rate the level of care they receive. However, we also knew the status quo couldn’t continue in a financially sustainable way. 

We decided to think outside the box and look for ways to innovate to deliver a win-win both for the community and Council’s financial sustainability. We turned to what local government does best – collaboration. We spoke to neighbouring Bayside City Council, long recognised as a leader in the aged care space, to see if we might find a way to partner so our services to Glen Eira residents could continue under their stewardship.  

After coming up with this possible solution, we put this idea to our community over a multi-week engagement effort. What we heard is that residents and staff understood the challenges we faced and were excited by the idea which could keep their service in local government hands. We took all of this feedback on board and made the decision to transition our in-home and social support services to Bayside City Council from November 2024. 

To us, this is such a great example of local government collaboration and innovation. And amazingly, we didn’t just meet our goal of maintaining services. With Bayside’s greater number of existing supports, we actually expanded the level of care to service users who would notice no disruption to the quality care they receive. Instead of withdrawing services, we prioritised understanding the implications of the reforms for our community and workforce. 

This partnership ensures continuity of care for more than 2,000 older residents while protecting staff employment, including their leave and entitlements. It demonstrates how collaboration between councils can maintain service quality and enhance employee satisfaction, even under challenging circumstances. 

Innovative strategies for success

Changes of this scale are rarely easy, but that doesn’t mean they can’t be well-planned and transparent. To make the transition a success, we adopted a comprehensive engagement strategy that addressed the concerns of all stakeholders: 

• Service users and families: We prioritised continuity of care and emphasised quality assurance. Consultation included tailored outreach to older residents and their families, ensuring diverse voices were heard.
• Staff: Transparent communication and support were central to managing the transition. By addressing concerns and offering opportunities for redeployment, we ensured that staff felt valued and informed throughout the process.
• Community trust: Clear messaging underscored our ongoing responsibility for service oversight and highlighted the benefits of collaboration with Bayside, reinforcing our commitment to accountability and quality.

At the same time, we put in place a comprehensive transition plan ensuring that clients didn’t notice any drop in the supports they receive. A steering committee between the two councils ensured that every last detail was considered and planned for.  

Lessons learned and future opportunities

This innovative model highlights the potential for neighbouring councils to play to their respective strengths and collaborate on shared service delivery, easing financial pressures while maintaining service standards. Beyond aged care, similar strategies could be applied to other services and community programs, allowing councils to pool resources and expertise. 

This doesn’t mean that councils should have to shoulder the whole burden themselves. In this environment, advocacy remains critical. Government cost-shifting continues to strain councils, underscoring the need for fairer funding models. We must continue to highlight the services that are at risk so our communities and elected decision-makers understand what is at stake.   

The path forward

For Glen Eira the future lies in balancing financial responsibility with innovation. By leveraging partnerships and focusing on community-centric solutions, we aim to ensure long-term sustainability while delivering a service experience that meets the needs of both residents and employees. 

As councils face increasing challenges, collaboration and strategic planning will be essential. Many councils are already doing this and doing it well, proving that necessity drives innovation. Glen Eira’s approach is just one example of how local governments can adapt to changing circumstances while upholding the trust and expectations of their communities.