Get ready for Grant Season
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Written by Zoe Dark, Grant Program Office Leader
Most Councils are reliant on grants and funding to deliver infrastructure and program projects. Local governments must approach their priority projects, with the goal that they’ll be funded by grants, resourcefully and effectively.
The Australian Local Government Association (ALGA) has reported grants and subsidies from the Australian and state/territory governments can account for more than 50%1 of council revenue for some rural and remote councils where revenue-raising capacity is limited. The ALGA also states grant funds account for around 14%1 of the total revenue for larger Councils.
In the coming months, we anticipate a surge in new competitive grants opening. Developing a project plan for each of your identified priority projects is a great way to prepare and strategically plan which funding opportunities you will target.
Preparation before the fund opens will allow you to produce a quality project plan. Here are some things to consider in the preparation process:
- what are the best options to deliver the project and investigate alternatives,
- engaging with relevant stakeholders,
- advocating the project to members of parliament,
- sourcing letters of support,
- obtaining supplier quotes,
- researching and gathering supporting evidence.
Whether it is a competitive funding round or a department approaching you with a flexible funding envelope looking for local projects to fund, if you have made the effort to plan what your priority projects are and can willingly reference your strategic plans, you are giving your project the best possible chance of success. Planning early can help you identify gaps in projects and allow time to address them. Too often great projects are let down because time wasn’t allocated to preplanning and applications are submitted for funding without a good options analysis, evidence of key stakeholder support or detailed budgeting for example.
Importantly, Councils that have a list of well-planned priority projects can easily adapt these projects to meet funding criteria and deliver strong strategic outcomes for the region.
"Local government revenue comes from three main sources – taxation (rates, which makes up about 38% of total revenue), user charges/sales of goods and services (28% of total revenue) and grants from federal and state/territory governments (14% of total revenue)". - Australian Local Government Association
Some aspects of your project plan may be left until the timeline for funding and guidelines are released, such as key dates in your schedule of works. Below is a list of what you can start documenting now to help you develop your pre-investment-ready project plans and save the last-minute dash to the deadline.
Articulate the need
Why are you delivering this project? Who and how many people/organisations will benefit from it?
What problems does the project seek to address?
What evidence do you have to support this?
- Strategic plans and corporate publications
- Minutes of meetings
- Statistics
- Feasibility study
Solution
Describe why the proposed project is the most appropriate course of action and what alternatives have been considered.
Strategic Alignment
List alignment of the project’s objectives with the relevant local, regional, state and national plans and policy objectives. Consider if your planning documents need to be reviewed to demonstrate your new priority project list.
Stakeholder support
List stakeholders who may contribute to the project, including internal and external stakeholders such as your finance department, town planning, program delivery staff, collaborating agencies, research/study groups and those who will benefit from the project.
Consider establishing a working group to help with the design of the project or program if interagency collaboration is likely to be required.
Budgeting
- Liaise with contractors and suppliers to discuss the project
- Source quotes
- Consider engaging a quality surveyor for large projects
- Develop a working budget that can be updated when funding criteria are released
Draft a schedule of works or activities
Determine the likely timeframes to deliver the project and consider resource availability and seasonal constraints.
Capacity and capability to deliver
List your organisation’s experience in delivering similar projects and note relevant qualifications and experience of key staff.
Detail how success will be measured and evaluated
List how you will monitor the project’s progress and evaluate the outcomes. A great way to do this is to compare statistical data pre and post-project, survey participants and/or collect usage/participant numbers.
Here are some statistical examples that could be used:
- 30 young people are actively engaged in the program by 30 June 2023
- Increase visitors’ average nights stay in the region by 0.5 by 01 Jan 2025
- Reduce homelessness by 3% by week 40
- Procurement complete by 01 April 2024
Gather evidence
- Minutes of council meetings endorsing the project
- Copies of documents that mention the project such as strategic plans
- Minutes of committees or working groups endorsing the project
- Letters from stakeholders stating what they can contribute to the project or how they will utilise/ benefit from the project
- Copies of land tenure documents
- Copies of studies or reports relevant to the project
- Research documents that demonstrate the benefits of the project
- Designs and drawings
Start Planning for the big funds now!
The federal budget includes a commitment to $1 billion worth of investment over 3 years in community programs to improve regional liveability. This program will be open and competitive with grants awarded on a merit basis. Administered funding for the program will be provided over three years. Information on program guidelines, eligibility criteria and the application process is anticipated to be available soon.
Almost $414 million in program funding has been approved towards 360 projects across 68 local governments in regional Queensland, supporting an estimated 3172 jobs during construction and attracting additional investment of over $608.7 million from councils and other organisations. Future rounds are anticipated to open mid 2023.
Local Government Grants and Subsidies Program
The Local Government Grants and Subsidies Program (LGGSP) is a competitive, application-based grant program available to all Queensland councils. Approximately $131 million is available in the 22/23 and 23/24 financial years. We are anticipating further details on further rounds of this fund to be released in the coming months.
Having a Project Plan is the best way to qualify your project and prepare a quality grant application. Every year most Councils adopt a list of priority projects it plans to seek funding from the State and/or Federal Government. Councils that mature these projects to a pre-investment-ready stage have the greatest chance of success.
If you need assistance developing your Funded Projects Strategy and maturing your projects to a pre-investment stage, please reach out to our Grants Program Office by emailing Zoe Dark at zdark@wearepeak.com.au
1 Australian Local Government Association https://alga.com.au/policy-centre/financial-sustainability/background-on-local-government-funding/ accessed 6 January 2023