It took more than the usual public exhibition process for Newcastle City Councillors, staff and ultimately the community to get a handle on the issues of infrastructure maintenance, service reductions, rate increases, cost shifting and increasing Local Government responsibilities that culminated in the City’s 2007/2008 Management Plan.
The adoption of the management plan in June this year was the result of almost two years of community dialogue, spearheaded by the conclusions of Percy Allan’s Review Today Report released earlier this year.
Professor Percy Allan is no newcomer to the issue of the financial sustainability of New South Wales Local Government. He has an extensive background in finance, public policy and management, as well as direct experience investigating the long term financial future of Local Governments.
In October 2006, Professor Allan and Review Today were contracted to conduct an investigation into Newcastle City Council’s financial sustainability.
The Newcastle Report: Issues for Sustainability highlighted the need for Council to significantly increase funding for infrastructure renewal. It also recognised the increasing demands and expectations placed on Council to ensure a vibrant and inclusive community.
The report made clear that the solution to the ‘infrastructure problem’ or ‘sustainability’ lies in balancing funding and spending.
It did not recommend significant cuts in services – in fact it recognised service delivery would need to continue to grow at a rate just below population growth. It did, however, recommend a process of review and investigation to better align services to community needs.
The report also recommended increased focus on infrastructure funded through efficiency gains, increases in rates, fees and charges, increased borrowings and accelerated commercialisation opportunities. Many of these options will take time to develop and implement.
The most immediate solution lies in a special rate variation, which will be applied over the next ten years.
While the adoption of this strategy alone is inadequate to resolve the infrastructure backlog and recurrent renewal program, it is an essential first step.
The key outcome of the Management Plan 2007/2008 is an increased focus on maintaining community infrastructure. An additional $4.11 million has been budgeted for the City roads and drainage program; an additional $1.77 million for the City buildings and structure program; and $1.4 million for natural assets.
The management plan balances this spending on infrastructure maintenance with providing other essential and highly regarded services to the community.
Council welcomed vigorous debate and community input throughout the public exhibition period.
The final result provides a sound platform for Newcastle City Council to build a sustainable future for the City.
