Coronavirus economy: NSW council coffers banking $2.65 billion in unspent infrastructure funds

There are fresh calls for billions of dollars in infrastructure funding sitting in council coffers to be injected into local projects across the state and stimulate the post-pandemic economy. FIND OUT WHICH COUNCIL HAS THE MOST IN THE BANK

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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 NSW councils banked an extra $191 million in the past year.

Urban Development Institute of Australia chief executive Steve Mann at the UDIA NSW Greater Sydney Luncheon. Supplied

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 with $160 million, while City of Sydney and Ku-ring-gai have $141 million and $135 million respectively.

SEE YOUR LOCAL COUNCIL’S FIGURES HERE:

WESTERN PARKLAND SYDNEY

CENTRAL RIVER SYDNEY
EASTERN HARBOUR SYDNEY

NORTHERN SYDNEY

SOUTHERN REGIONS

SOUTH SYDNEY

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 councils were sitting on free money.

Mr Mann said, surprisingly, there is no clear relationship to the completion of major developments and when developer contributions are actually spent.

Local Government NSW president, Linda Scott, said local councils are “at the forefront of locally led economic and community recovery”.

“Investment in infrastructure, in part funded by development contributions, is one part of this work,” she said. “When it comes to development and infrastructure, councils have a responsibility to balance the public good and commercial interests.”

Cr Scott said a major issue for councils was funding shortfalls for libraries, sporting fields, footpaths and other infrastructure.

Local Government NSW President Linda Scott.

“Even with the funds contributed by developers, councils still face a significant shortfall funding the infrastructure backlog in their communities,” she said.

“A State Government proposal dictating how councils receive and use developer contributions would seriously undermine council efforts.

“Criticism that councils don’t spend developer contributions fast enough does not take into account complex issues such as the lengthy acquisition processes involved in acquiring land, the time taken for the developments and other factors.”