Blacktown, Parramatta, Cumberland, The Hills bank $506m in infrastructure funds
A staggering $506m in infrastructure funds have been withheld by four Sydney councils, as Blacktown Council is revealed to hold the second highest amount of unspent developer contributions in the state. SEE THE FIGURES HERE.
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Councils at the geographical heart of Sydney have banked a whopping $506.3 million in infrastructure funding paid by developers — with Blacktown Council coffers holding the second largest amount of any council in the state.
New data has lifted the lid on developer contributions being raked in at central Greater Sydney councils stretching from The Hills in the north to Cumberland in the south, with Blacktown Council banking an overwhelming $213.9 million.
Parramatta Council has a recorded $134.1 million in unspent funds, while in The Hills, more than $91.6 million has been banked in the coffers. Cumberland Council has $66.6 million saved.
A Blacktown Council spokesman told NewsLocal total work and land acquisitions over the past 25 years came to more than $3.5 billion.
“Council held developer contributions in the bank in order to pay for contract works in 18/19 associated with development which has already been agreed to – currently budgeted at $76-million,” the spokesman said. “Council also held Section S7.11 developer contributions in the
bank in order to pay for land acquisitions in 18/19 associated with development which
has already been agreed to – currently at $86-million.”
The spokesman said a further $20 million was set aside the cope with potential hardship cases, where land acquisitions are rushed through due to financial hardship of the landowner.
Meanwhile, a Parramatta Council spokeswoman said it has a long list of significant construction and infrastructure projects currently underway, “including Parramatta Square, the Aquatic and Leisure Centre, and the transformation of Parramatta Quay”.
A further 42 projects, worth $64 million, will be delivered across the local government area within the next 12 months.
“City of Parramatta Council is forecast to spend $95.9m on infrastructure and construction works in 2019/20,” the spokeswoman told NewsLocal. “Of this, $41.2m is funded by developer contributions.”
A further $198.2 million is expected to be spent in infrastructure projects in the next financial year.
A Cumberland Council spokesman said certain developer contributions can only be spent surrounding new populations.
“Council is supporting development during COVID-19, and has made the decision to temporarily defer contributions to be paid from prior to construction certificate to prior to occupation certificate,” the spokesman said. “The issue with s7.11 (developer contribution) funds, as it currently stands, is they have to go on new augmented projects and or are tied to plans that have traditionally been very prescriptive and are often are reliant on council funds to deliver the project.”
Overall, councils in communities across NSW have banked a massive $2.65 billion worth of unspent developer contributions, as industry leaders call for the funds to be urgently spent in local infrastructure projects to support communities post-coronavirus.
The shocking amount of funds in council coffers across the state has been revealed by The Urban Development Institute of Australia NSW, who’s chief executive Steve Mann found a council’s banked an extra $191 million in the past year.
“The five councils who have banked the highest amounts of developer contributions are all Sydney-based, with Bayside Council holding onto $286 million, Blacktown banking $214 million, Liverpool has $160 million, while Sydney and Ku-ring-gai have $141 million and $135 million respectively.
Mr Mann said councils across the state could spend the developer contributions on local parks, footpaths, roads, sporting fields and lighting.
“These are funds that must be spent on projects to benefit the local community, so what better time to invest in local infrastructure than now?” Mr Mann told NewsLocal.
“Councils can consider these contributions as free money — now is the time to spend it.”
The UDIA NSW chief said spending the funds would result in fast economic outcomes over the next 12 to 18 months, however, councils are hamstrung by red tape and policy in “desperate need of reform”.
Mr Mann said, surprisingly, there is no clear relationship to the completion of major developments and when developer contributions are actually spent.