Administrator heads to local government conference

Central Coast Council is not alone in its concerns about a number of issues that affect its financial position.

Administrator Rik Hart will attend the NSW Local Government Conference next week and while he has not introduced any motions to the conference, other councils have brought forward issues that also affect the Central Coast, with Hart to vote on these motions.

One of them is the payment dates of the Federal Government’s Financial Assistance Grants (FAG).

Lake Macquarie Council has put forward a motion calling on the Government to stick to a schedule of payments so councils have visibility and certainty.

“Commencing in 2016/2017, the Federal Government has progressively brought forward the payment of the FAG to the point that the grant for financial year 2023/2024, was wholly paid in financial year 2022/2023,” Lake Macquarie explains in its motion.

“While bringing forward FAG payments has represented a windfall for councils across the country, and improved end-of-year financial results, it creates uncertainty and a concerning prospect for the future.

“Specifically, should the Federal Government return to paying the FAG during the year it falls due, it will instantly create a financial shock to all councils.

“It would be preferable, from the perspective of prudent financial planning, for the Federal Government to determine a payment schedule and maintain that schedule so councils have visibility and certainty in financial planning.”

Central Coast Council has had exactly that issue, with this year’s FAG paid early and adding to last financial year’s surplus.

CEO David Farmer said at the September meeting that it could create problems down the track if the timing changes.

Strathfield Council, in Sydney, has put forward a motion asking the State Government to address the negative impacts of its cost shifting activities on local government finances.

“Local Councils are facing increasing financial challenges and constraints which are exacerbated by the practice of cost shifting by the State Government,’’ the council said.

It says “cost shifting” refers to the practice of the State Government transferring its financial responsibilities for services or programs to Local Councils without providing adequate financial support, thus inhibiting the capacity for Councils to deliver quality services and essential infrastructure to its community.

Examples include the State Government’s waste levy and the recent State Government ruling that the Rural Fire Services assets are “owned” by councils.

Walcha Council has put forward a suggestion that national parks and forestry corporation land should be rated, giving councils an ability to raise income to compensate for costs incurred from their natural resources.

The Central Coast has 11 per cent of land area categorised State Forest managed by the Forestry Corporation of NSW and another 25 per cent of land area is National Park, State Conservation Area or Nature Reserve managed by the NSW National Parks and Wildlife Area.

These statistics were contained in a recent letter from Farmer to the State Government about the planning system and climate change.

The LGNSW conference is being held at Rosehill Gardens Racecourse on November 12-14.

Merilyn Vale