Coronavirus economy: western Sydney councils bank $415m in infrastructure funding
Shocking amounts of infrastructure funding from developers have been banked in western Sydney council coffers this year. SEE HOW MUCH YOUR COUNCIL HAS WITHHELD HERE.
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Western Sydney councils have banked an eye-watering $415 million in infrastructure funding paid by developers — expected to be injected back into local community projects.
New data has revealed Western Sydney councils stretching from the Hawkesbury to Wollondilly shires have banked staggering amounts of developer contributions, with Liverpool Council holding onto a massive $159 million — the third highest amount in the state.
Camden council has $85 million in unspent developer contribution funds, Fairfield has banked $53.1 million, Penrith is holding onto $41.7 million, while Wollondilly Council has $34.5 million held in the coffers.
Campbelltown Council has a recorded $20.5 million in unspent funds, while over in Hawkesbury $16.8 million has been banked in the coffers. Blue Mountains Council has just $3.5 million saved.
Liverpool Council chief executive Kiersten Fishburn said council recently completed several major projects including the $7 million Bernera Rd extension at Edmondson Park, the $2.9 million Casuala Parklands development and the acquisition off flood detention basin land in Austral and Edmondson Park for $8.4 million, with several major projects in the works.
“Liverpool City Council is a growth Council,” Ms Fishburn said.
“Expenditure on capital works came to $66 million in the 2019/2020 financial year (and)
council has the highest rate of capital expenditure among Western City Council.”
She said council was taking a “long term view about sustainable development” in the Liverpool Government Area.
Fairfield Mayor Frank Carbone said council has made “significant investments in a number of large scale infrastructure projects” over the past 12 months, including the Fairfield Showground redevelopment, Smithfield Rd upgrades and work at Aquatopia Water Park totalling $68.6 million.
“We understand these are challenging times for our community and it’s important we bring forward expenditure now to improve facilities for the community and use funds to create jobs in the short term,” he said. “Ultimately these funds have been collected over time for to develop community assets and now is the time to take advantage of the opportunity and make an unprecedented investment in infrastructure, not only to improve the lifestyles of our community but also to fast-track work to create jobs for locals.”
Hawkesbury city planning director Linda Perrine said $4.3 million has been spent on new and improved infrastructure.
“The rate of expenditure and timing of provision of these works is dependent on when development contribution funds are received and/or sourcing alternate funds,” she said. “A large part of all contributions are for acquisition of land and the construction of infrastructure, be it for public recreation, community facilities, roads and drainage.”
While Campbelltown city development director Jim Baldwin said contributions are accumulated and set aside “in support of the provision and delivery of key infrastructure”.
A Camden Council spokesman said council will spend $24.1 million in capital works and infrastructure next year.
“Councils total capital works budget including developer delivered items via agreements is $177 million for the 2020/21 financial year,” he said.
“As part of Council’s COVID-19 Community Support Package, an additional $11.4 million in capital works has been fast tracked to be delivered in 2020/21 funded from Section 711.”
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 councils 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.