Point Cook residents ‘ripped off’ $36m by Wyndham City Council as developer contributions stored for 20 years

A western suburbs council has been slammed after revealing it sat on $36m from developers for more than 20 years before asking if it could be used.

Wyndham City Council claims it recently “unlocked” $36m for Point Cook infrastructure projects after a councillor was looking for additional funding for the Jamieson Way community centre masterplan in 2021. Picture: Supplied

A council in Melbourne’s west has been slammed after revealing it sat on $36m from developers for more than 20 years before asking if it could be used for vital infrastructure.

Wyndham Councillor Susan McIntyre, through her social media, spruiked a “thorough investigation” had “found” funds previously tied to other projects in the suburb of Point Cook could be shifted to new infrastructure plans in the same area.

Ms McIntyre edited her original statement which claimed the $36m was “found” after it drew widespread criticism from residents as to how a council could lose millions of dollars.
She changed the term ‘found’ to ‘unlocked’.

The surplus funds consist of developer contributions — payments from developers to councils towards the supply and maintenance of infrastructure projects such as roads or community facilities in proximity to approved development plans.

Wyndham City Council officers sought legal advice to determine what the developer contributions could be reallocated towards.

 
“The council has been collecting developer contributions in Point Cook over the last 20 years … this was an investigation into the 20+ developers plans and what has been built,” Ms McIntyre said.
“There was legal advice obtained with regards (to) those agreements as to what the money could be spent on.”

Ms McIntyre said the investigation began in August 2021 after a search for additional funding for the Jamieson Way Sports Hall.

Wyndham councillor Susan McIntyre said the “unlocked” funds will be spent to improve the Point Cook community. Picture: Olivia Jenkins

In a statement, a Wyndham City Council spokeswoman said the surplus came about because old projects were either cancelled or came in under budget.

Some of the surplus was also initially meant for roads that ended up being funding completely or partly by VicRoads.

“Council has always met its obligations to deliver community centres and recreation facilities in Point Cook and will continue to do so,” the spokeswoman said.

“Recent legal advice confirmed Council is not limited in the type of infrastructure this money funds but that it must be reinvested in the area in which it was collected.”

In emails obtained by the Herald Sun, Wyndham Council chief executive Stephen Wall clarified the money was not “missing” and said because Point Cook had been going through development for decades, plans drafted more than 20 years ago did not account for projects that were later discontinued.

“Council sought legal advice in relation to how this money can be spent, noting that Point Cook is significantly more developed and established than other growth fronts across our city,” Mr Wall said.

The Wyndham City Council chief executive said the council had met all its obligations as per the previously endorsed plans.

But Council Watch president Dean Hurlston has slammed Wyndham as “lazy” and “inept”, demanding the council conduct a full public audit to ensure other suburbs within the municipality had not been deprived.

“Why have officers and successive chief executives not done the hard work to ensure public benefit was derived as soon as possible?” he said.

“I understand a couple years but 20? Come on, this goes to the competency of this council that is inept and lazy,” Mr Hurlston said.

“Why has it taken two decades to figure out what other councils have been doing forever? Point Cook residents have been ripped off more than $36m for 20 years and they deserve answers, it’s pathetic.”

Council Watch Victoria president Dean Hurlston questioned the competency of the Wyndham council officers and executive.

In response to the revelations, Sanctuary Lakes Netball president Tracy Hunter-Gerber hoped it would mean better facilities at the club which shared the same postcode.

“With only four courts, (the club) are struggling with terrible lighting on two of those courts we need council to start looking after our sport,” Ms Hunter-Gerber said in a social media comment.
“With 245 kids and a very big waitlist for our club we have been working with council for more than eight years on this project and are still waiting.”

A councillor at a nearby council, who wished not to be named, said they “could not understand” how Wyndham found itself in this position.

“If I was a Wyndham councillor and I knew about this large sum of dormant money, I would have urgently pushed to fast track critical infrastructure projects,” the councillor said.

“You cannot build enough roads for the rate the west is growing, there are so many unsealed roads in the outer west of that region, it does not make sense that they have sat on it.”

A council spokeswoman said its budget had always reflected unspent developer contributions collected for Point Cook.

The council said it was now planning which projects would be allocated the funds, with some expected to appear in the budget set to be released on April 24.

The council was asked by the Herald Sun whether the $36m included any interest accrued over the 20 year period but it did not respond directly to the question.