Sutherland, Canterbury-Bankstown, Georges River councils sit on $243m in infrastructure funding
South Sydney councils are sitting on $243 million in “free money” from developers, which is supposed to be injected back into the community. SEE WHAT YOUR COUNCIL HAS HERE.
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Three southern Sydney councils have raked in a massive $243 million in unspent infrastructure funding from local development contributions — expected to be injected back into the community.
Canterbury Bankstown Council in the city’s southwest has banked an eye-watering $117.5 million in developer contributions, while Sutherland Shire and Georges River councils are holding onto $67.2 million and $58.3 million respectively.
A Canterbury Bankstown spokeswoman said council are guided by “very clear restrictions” on how the money must be spent.
“You could go as far as saying — council’s hands are tied”,” she said. “The works program must be attributed to a growth in population, not just maintenance and many projects undertaken by Councils must be matched dollar for dollar from council’s reserves.
“The State Government is fully aware that the Development Contributions system in NSW is one of the most complex — in fact, on their own website they acknowledge this and are currently reviewing and calling on feedback about the proposed reforms.”
Several road, footpath and playground upgrades have been conducted using developer contributions to the council.
Meanwhile, A Sutherland Council spokesman told NewsLocal a total of 15 playgrounds throughout the Sutherland Shire, dredging works Sylvania and Woronora, a boat ramp at Gunnamatta, Old Ferry Road Reserve Upgrade and a raft of roads construction and rehabilitation projects were completed through developer contribution funding.
“Sutherland Shire Council currently holds approximately $58m in developer contributions, which have been set aside to fund both capital works and land acquisitions for priority projects identified throughout the Sutherland Shire,” he said.
“Of these projects 32 are due for completion by June 2020, with the remaining 20 expected to be completed in the 2021/22 financial year.”
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 NSW 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.