The Hills, Blacktown owed $645m in development contributions from NSW Government
A NewsLocal investigation can reveal the NSW Government owes Sydney councils more than $645 million in development contributions since December 2017.
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Councils and their ratepayers in booming suburbs across Sydney are owed hundreds of millions of dollars worth of development contributions by the State Government — supposed to be handed over for vital infrastructure projects.
A NewsLocal investigation can reveal the NSW Government owes Sydney councils — including The Hills and Blacktown — more than $645 million in development contributions, with no commitment in allocating the funds in sight.
The NSW Government committed to subsidising the funding gap between developers and councils for community infrastructure projects, when required funding exceeds $30,000 per dwelling in greenfield development sites.
The NSW Government hit back at the councils’ claims, telling the Saturday Telegraph there “are no outstanding developer contributions owed by the NSW Government to councils”.
“The Local Infrastructure Growth Scheme funds the gap between the maximum contribution that councils can charge developers and the actual costs of essential infrastructure,” a Planning Department spokeswoman said.
“There is not currently a LIGS funding round open under which councils can claim funding.”
However, an opportunity to apply for a funding round has not been released since 2017 — causing a major backlog for councils.
The Hills Shire Council in the city’s northwest has led the charge against the government’s lack of commitment to funding, with councillors determined to see NSW Treasury and the Planning Department cough up on the $185.9 million owed to their ratepayers.
Hills Shire Mayor Michelle Byrne said greenfield development at North Kellyville and Box Hill are undergoing rapid growth, with more development on the way.
“This gap funding will enable council to deliver essential new infrastructure such as parks, sporting fields, cycleways and pedestrian bridges,” Cr Byrne said. “We call on the NSW Government to release funding as soon as possible so we can get on with the job of infrastructure and service delivery.”
Labor councillor Tony Hay said the government was “withholding funds from the community”.
“If it was invested in our priorities and banking strategy, it would offset future costs and make more money for the community,’ He said. “Why isn’t the state government coming to the party and providing the funding that is owed to the people of The Hills.”
While sources revealed Blacktown Council is owed $460 million in contributions by the government.
Blacktown Mayor Stephen Bali said council is only granted the funding when the NSW Government provides an invitation to apply for it — with over $275 million allocated up until December 2017.
“The funding so far received has been welcomed and allowed Blacktown City Council to principally purchase land for much needed local infrastructure in the northwest growth area,” Cr Bali said. “The discussions have been ongoing for some time, and recently we have seen an acknowledgment by the NSW government to try and resolve our concerns.”
He said council was hopeful of a positive outcome, with funding required for council to purchase $1.75 billion of public purpose land, and delivering $1.75 billion of “essential local infrastructure capital works” in the northwest Growth Area.
The mammoth amount of unpaid contributions since December 2017 follows a tidal wave of development across The Hills and Blacktown over the past five years, following the introduction of a series of greenfield development sites including North Kellyville, Box Hill, Riverstone, Schofields and Marsden Park.
Bayside and Wollongong councils were also listed as part of the NSW Government Local Infrastructure Growth Scheme for development in Rockdale and West Dapto, however, representatives failed to respond before deadline.
A spokesman for NSW Treasurer Dominic Perrottet said the NSW Planning Department oversaw development contribution funding.