A report from the Local Government Association of New South Wales (LGNSW) has found NSW councils are being lumped with an extra $670 million financial responsibility as the State and Federal governments shift costs.
Undertaken every two years, the Local Government NSW Cost Shifting Survey has found the cost-shifting burden increased by $88 million since the last survey, which covered the 2011/12 financial year.
President of LGNSW Councillor Keith Rhoades said the survey results should be read as part of a broader picture of financial pressure on councils.
“These latest cost-shifting figures come hard on the heels of the IPART announcement of the tiny 1.8 percent rate cap, and illustrate the ever-increasing financial squeeze on councils in NSW.
“What we’ve got is a real triple whammy: a rate peg of just 1.8 percent, cost-shifting to the tune of more than $670 million each year, and on the federal front, a freeze on the indexation of Funding Assistance Grants that is costing the NSW local government $289 million.
Cr Rhoades said council amalgamations proposed by the NSW State Government would not alleviate financial distress.
“It’s not the councils that are broken, it’s the funding system they’re forced to work under.
“Amalgamating two financially squeezed councils just results in one large council under even greater financial stress.”
