Local Government
Sustainability Objectives
and Indicators
DECEMBER 2011
Local Government Division
Department of Premier and Cabinet
SUSTAINABILITY INDICATORS
Areas of
measurement
Objective
Indicator
Indicator questions /
descriptions
Data source
1. Financial
management
To achieve
and/or improve
financial
sustainability
through meeting
the
requirements of
sound fiscal
management.
Operating
surplus
Description: The difference
between day-to-day income
and expenses for the period.
Comment: An operating
surplus (or deficit) arises
when operating income
(excluding capital income)
exceeds (or is less than)
operating expenses for a
period (usually a year).
Calculation: Operating
income (excluding amounts
received specifically for new
or upgraded assets and
physical resources received
free of charge) less operating
expenses for the reporting
period.
Description: The percentage
by which the major
controllable income source
plus operating grants varies
from day to day expenses.
Comment: The operating
surplus ratio is the operating
surplus (or deficit) expressed
as a percentage of general
and other rates and operating
grants.
Calculation: Operating
surplus (or deficit) divided by
general and other rate
income and operating grants.
AuditorGeneral
Description: What is owed
to others less money held,
invested or owed to the
entity.
Comment: Net financial
liabilities equals total liabilities
less financial assets.
Calculation: Total liabilities
AuditorGeneral
Operating
surplus ratio
Net financial
liabilities
Sustainability Objectives and Indicators Project
AuditorGeneral
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SUSTAINABILITY INDICATORS
Areas of
measurement
Objective
Indicator
Net financial
liabilities ratio
2. Asset
management
To manage
assets in a way
that maximises
asset service
delivery,
manages related
risks and
accounts for
whole-of-life
costs.
Asset
sustainability
ratio
Asset
consumption
ratio
Sustainability Objectives and Indicators Project
Indicator questions /
descriptions
less financial assets (cash and
cash equivalents plus trade
and other receivables plus
other financial assets).
Description: The significance
of net amount owed
compared with the period’s
income.
Comment: Indicates the
extent to which net financial
liabilities could be met by
operating income.
Calculation: Net financial
liabilities divided by operating
income.
Description: The ratio of
asset replacement
expenditure relative to
depreciation for a period. It
measures whether assets are
being replaced at the rate
they are wearing out.
Comment: Indicates whether
the entity is replacing or
renewing non-financial assets
at the same rate that its
overall stock of assets is
wearing out for the period.
Calculation: Capital
expenditure on replacement /
renewal of existing plant and
equipment and infrastructure
assets divided by their annual
depreciation expense.
Description: The average
proportion of ‘as new’
condition left in assets.
Comment: Shows the
depreciated replacement cost
of an entity’s depreciable
assets relative to their ‘as
new’ (replacement) value
Data source
AuditorGeneral
AuditorGeneral
AuditorGeneral
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SUSTAINABILITY INDICATORS
Areas of
measurement
Objective
Indicator
Asset
renewal
funding ratio
3. Planning and
development
To develop,
Percentage of
Development
implement and
improve planning Applications
(DAs)
Sustainability Objectives and Indicators Project
Indicator questions /
descriptions
Calculation: The depreciated
replacement cost of plant,
equipment and infrastructure
assets divided by the current
replacement cost of
depreciable assets.
Description: The ratio of net
present value of asset renewal
funding accommodated over
a ten year period in a longterm financial plan relative to
the net present value of the
projected capital renewal
expenditures identified in an
asset management plan for
the same period.
Comment: Indicates whether
the entity has the financial
capacity to fund asset renewal
as required and therefore
continue to provide existing
levels of asset-based services
in the future without
additional operating income
or reductions in operating
expenses, or an increase in
net financial liabilities above
that currently projected.
Calculation: The net present
value of projected ten-year
capital renewal funding
outlays in a long-term financial
plan divided by the net
present value of projected
ten-year capital renewal
expenditures in an asset
management plan in current
values.
What percentage of DAs was
completed within the
statutory timeframe of 42
days?
Data source
AuditorGeneral
CDC - Land
Use and
Planning
Section
4/7
SUSTAINABILITY INDICATORS
Areas of
measurement
Objective
Indicator
and
development
practices that
improve access
to facilities and
services,
utilisation of
resources,
appropriate
infrastructure
provision and
sustainable
environmental
practices.
completed
within
statutory
timeframe.
Average days
to process
planning and
development
applications
(statutory
time as per
legislation,
exclude days
where clock
stopped).
Percentage of
decisions by
the Resource
Management
and Planning
Appeals
Tribunal
(RMPAT) in
favour of the
council.
4. Community
satisfaction1
a) Planning and
development
To ensure
communities
are satisfied
Indicator questions /
descriptions
What are the:
 Average number of
calendar days to
process applications:
- planning: permitted
use
- planning:
discretionary use
- building
Data source
CDC - Land
Use and
Planning
Section
 Total number of all
planning applications
lodged
 Total number of all
building applications
lodged
 How many council planning
decisions were referred to RMPAT
RMPAT?
 How many decisions were
in favour of the council?
LGAT survey
Satisfaction
with councils’
On a scale of 1-5, how do
respondents rate their
LGAT survey
1
The questions in the LGAT survey ask the respondent to rate their satisfaction on a Likert scale of 1 to 5; 1
indicates very dissatisfied and 5 indicates very satisfied.
Sustainability Objectives and Indicators Project
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SUSTAINABILITY INDICATORS
Areas of
measurement
Objective
Indicator
Indicator questions /
descriptions
with councils’
provision of
services in the
areas of:
performance
in planning
and
development.
Satisfaction
with councils’
performance
in community
involvement.
satisfaction on their council’s
performance in consistent and
appropriate planning policies
(see footnote 4 below)
On a scale of 1-5, how do
respondents rate their
satisfaction on their council’s
performance in community
involvement in relation to:
 informing residents about
Council activities
 involving residents in local
decision making
 access to Councillors /
Aldermen
c) Infrastructure
Safe and well
maintained
roads,
pedestrian
areas and
local road
networks.
d) Environmental
management /
waste
Waste
management
On a scale of 1-5, how do
respondents rate their
satisfaction on their council’s
performance in providing:
 safe and well maintained
local roads
 safe and well maintained
pedestrian areas
 an efficient road
network
 an effective stormwater
system
On a scale of 1-5, how do
respondents rate their
satisfaction on their council’s
performance in:
 household garbage
collection
 recycling services –
including kerbside
recycling and depots
b) Community
involvement
a) Planning and
development
b) Community
involvement
c) Infrastrucure
d) Environment
al
management
/ waste
e) Recreation /
culture
f) Community
health and
safety
g) Overall
satisfaction
Sustainability Objectives and Indicators Project
Data source
LGAT survey
LGAT survey
LGAT survey
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SUSTAINABILITY INDICATORS
Areas of
measurement
Objective
Indicator
e) Recreation,
cultural
facilities and
programs
Provision and
management
of
recreational
and cultural
facilities and
programs.
f) Community
health and
safety
Hygiene
standards of
food outlets,
restaurants
and public
facilities,
council
immunisation
programs and
animal
control.
Satisfaction
with overall
performance
of council.
g) Overall
satisfaction
Sustainability Objectives and Indicators Project
Indicator questions /
descriptions
 operation of local tip
and transfer stations
 maintaining a clean and
tidy city/town
On a scale of 1-5, how do
respondents rate their
satisfaction on their council’s
performance in:
 sports grounds and
recreation facilities
 parks and playgrounds
 community centres and
halls
 arts and entertainment
facilities including
museums and art
galleries
 arts and entertainment
activities and special
events
 management of natural
areas
Data source
LGAT survey
On a scale of 1-5, how do
respondents rate their
satisfaction on their council’s
performance in:
 hygiene standards of
food outlets, restaurants
and public facilities
 council immunisation
programs
 animal control
LGAT survey
On a scale of 1-5, how
satisfied are you with your
council’s performance overall?
LGAT survey
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