Mayoral Memo - 3 July 2024
Securing grants is increasingly becoming a complex and competitive process for councils across Australia. With many councils vying for the same limited funds, the challenge is not just about winning the grant but also about managing the uncertainties and costs associated with the application process.
Over the last six financial years, Dubbo Regional Council has received varying amounts in capital grants: Starting from $35 million in the 2017/18 financial year followed by $28 million; $17 million; $28 million; $29 million and then $30 million in 2022/2023. These figures highlight a three-year decline followed by a three-year increase, illustrating the unpredictability in grant funding. This inconsistency makes budgeting extremely difficult, as councils must plan their finances without knowing how much grant money will be available.
Applying for grants is not a cost-free endeavour. Smaller councils, in particular, face the tough decision of whether to invest in the application process without any guarantee of success. This financial strain can sometimes lead them to forgo applying altogether. The cost of preparing a comprehensive grant application can be substantial, encompassing staff time and external consultancy fees.
The Federal Government's Financial Assistance Grants offer a more predictable source of funding. These untied grants are allocated based on a formula and provide councils with a reliable income stream to use as they see fit.
I am currently sitting in chilly Canberra at the ALGA Regional Forum. The first point that the President made in her opening address was that financial sustainability is the number one issue facing councils. However, we cannot solely rely on government funding to achieve financial sustainability.
In a proactive move towards financial stability, Dubbo Regional Council has embarked on a public-private partnership (PPP) with Squadron Energy. This project, valued at $3.6 million, has received initial approval to proceed from the Office of Local Government.
Effective partnerships hinge on mutual benefit, and our agreement with Squadron Energy is a testament to this principle. Squadron needed to secure approximately 2 gigalitres of water over five years. One option was to purchase temporary water licenses on the open market at an estimated cost of $700,000.
Dubbo Regional Council has a strategic plan to upgrade our wastewater treatment capabilities, and typically we would look for grants. In discussions with Squadron, we reached an MOU where they agreed to fund the $3.6 million construction of an advanced wastewater treatment facility. In return, they will have access to the water they need and then the Dubbo community will have access to an additional 700 megalitres of water treated to a higher standard.
This collaboration is a win-win scenario with the Dubbo residents receiving enhanced water security.
While the journey to financial sustainability is fraught with challenges, innovative solutions and strategic partnerships can pave the way for a more secure financial future for Dubbo and other councils across Australia.
Councillor Mathew Dickerson
Mayor of Dubbo Regional Council
Last Edited: 02 Jul 2024