The value in LGA membership
All councils benefit from working together.
When local governments in South Australia come together to solve problems, tackle challenges and collaborate, great things happen. Communities benefit, issues get resolved and councils save money. It all starts by having a strong and united voice.
There are three high level roles that state local government associations perform for their member councils:
- Advocacy: Influencing state and federal government policy, legislation and funding.
- Aggregation: Bringing councils together to pursue worthwhile opportunities.
- Advancement: Assisting with the business of council, its operations and efficiency.
Not all of these activities result in an identifiable saving or cost offset to councils, but many do. With assistance from an LGAQ business analyst, the LGA has calculated the value of services where possible and also sought to identify non-cash benefits.
The Value Proposition of Membership of the LGA of SA has mapped these financial benefits across nine areas of activity: insurance, LGFA, procurement, governance, workforce, online services, research and development scheme, advocacy, and support for councillors.
This work has quantified the value of services provided by the LGA to its member councils as being worth $52 million a year. In 2016/17, grants secured or maintained through LGA and ALGA advocacy will add another $138 million to this figure, resulting in a total benefit to councils of around $190 million.
A full copy of the report outlining the LGA’s value proposition can be accessed here: The value in LGA membership(712 kb)
As a part of a strategy to update the value proposition document annually, the LGA asked prominent chartered accountants UHY Haines Norton to undertake an independent verification of the document. Although highlighting that using averages is not necessarily the right approach in all circumstances, the assessment has validated amounts of $1.55m per Council. On a population basis this is around $63,000 value for every 1000 people. Categorised, the validated benefits can be allocated: $32.2m to commercial entities (LGFA/insurance schemes); $49.9m to advocacy for grant funding; and $23.7m to services assisting the sector including Governance, Procurement, Advocacy, Research, Workforce/Training and Councillor support.
The UHY Haines Norton verification can be accessed here: LGA Value of Membership - Independent Verification UHYHN(1229 kb)
Frequently Asked Questions
The LGA has received a number of questions in relation to this document and so has assembled answers to the most frequently asked below.