Insights from the PSN Local Government Focus Day

This document is a report on the 2026 PSN Local Government Focus Day, which convened senior leaders and practitioners from Victorian councils to discuss shared challenges and responses. The discussions highlighted financial sustainability as the most significant challenge, with 91% of participants identifying it as a priority. The report outlines how councils are adjusting their planning, prioritization, and operations in light of ongoing changes. Key observations include the necessity of technology and AI integration, with 51% of councils exploring AI while remaining cautious. The document details various councils' experiences with AI, emphasizing the importance of clear processes and data quality. It also discusses the role of service design in decision-making, advocating for a connection between service design and financial discussions. The report concludes with focus areas for the next year, including investing in digital foundations and improving data use in decision-making, reflecting a sector actively navigating change.