Friday, 09 July 2010

Member for Davidson, Jonathan O’Dea has taken the financial challenge facing local councils from reduced developer contributions directly to the cause – the
NSW Labor Government.

 The Government’s decision to limit the infrastructure levy on developers for new dwellings to $20,000 will cost Ku-ring-gai Council up to $60 million by 2031.

“This is an issue for the whole community,” Mr O’Dea said.

“If the Council is unable to raise the necessary revenue to provide for essential infrastructure from developer contributions, it may need to introduce higher rates and additional revenue streams from existing ratepayers.

“This would result in existing residents being forced to subsidise facilities for new residents,” Mr O’Dea said.

“The funding is needed to contribute to the cost of roads, traffic signals, footpaths, street furniture, parks, town squares and extensions to community facilities such as libraries.

“On behalf of the Council and the community, I have written to the Planning Minister and the Local Government Minister asking if they are aware the State Government’s decision to limit so-called Section 94 contributions to $20,000 will leave Ku-ring-gai Council up to $60 million short.

“I understand the NSW Government agreed to a Section 94 contributions plan in association with the Ku-ring-gai Town Centres LEP, which is now underfunded.

“I have asked how much of Ku-ring-gai’s shortfall the State Government is prepared to meet and how any remaining shortfall should be met?

“At a time when residents are already facing NSW Government increases in the cost of essential services such as water and electricity, increased council rates would be a further blow.  Meanwhile, developers benefiting from the construction of new dwellings will pay less,” Mr O’Dea concluded.