Council motion adopted by ALGA annual assembly

Maroondah City Council has succeeded in having a motion submitted to the Australian Local Government Association (ALGA) adopted at its annual assembly.

The motion, which calls on the Federal Government to provide a funding stream for metropolitan councils to access for major infrastructure projects, was approved by the 2019 ALGA’s National General Assembly in Canberra, held from 17 to 19 June.

Maroondah Councillor, and Council’s delegate on the Municipal Association of Victoria, Mike Symon said the annual ALGA conference attracted more than 800 councillors each year and was a chance for local governments to influence the future directions of councils and their communities by taking concerns directly to the federal arena.

He said Council’s motion was of national significance, particularly in light of constant funding pressure faced by councils.

“There is increasing pressure placed on councils to provide high-quality services and deliver more programs and services with no extra funding or insufficient funds being provided to do so. This leaves local government having to bear the burden of cost shifting imposed by other levels of government, which in turn places unfair financial burden on ratepayers,” Cr Symon said.

Prior to the 2016 Federal election, metropolitan councils could access funding for infrastructure projects through the National Stronger Regions Funds.

However, during the election, the Australian Government announced a new Building Better Regions Fund (BBRF) to support infrastructure and community initiatives in areas outside of major cities (which superseded the National Stronger Regions Fund).

“Currently, metropolitan councils across Australia are ineligible under current policy parameters to access this funding stream, which only invests in projects or provides benefits to eligible areas outside Australian major capital cities,” Cr Symon said.

The BBRF provides grants of between $20,000 to $10 million to support projects that involve the construction of new infrastructure, or the upgrade or extension of existing infrastructure that provide economic and social benefits to regional and remote areas.

“Cost shifting undermines the financial sustainability of the local government sector by forcing councils to assume responsibility for more infrastructure and services, without sufficient funding or grants to keep pace with rising delivery costs,” Cr Symon said.

Councils were further impacted by the Victorian Government’s introduction in 2016 of a rate cap, which limited the amount of revenue councils could raise to fund their infrastructure programs and deliver local community services, he added.

“Victorian councils are responsible for local roads and community infrastructure worth over $102 billion. This includes roads, bridges, public libraries, sporting grounds and kindergartens.

“Cost shifting, in conjunction with rate capping, has resulted in councils making decisions that do not align with community expectations to cover shortfalls in funding to meet increasing service demands and standards.

“Council’s motion has national significance throughout the local government sector and therefore I’m pleased it has received endorsement by the ALGA,” he said.