(Hunter Joint Organisation)
Newy 87.8 FM – Council rates fund only around 43 per cent of operating costs in Newcastle and about 50 per cent in Lake Macquarie, according to the Hunter Joint Organisation, which says the figures highlight the need for long-term funding reform.
The organisation says a common myth is that rates pay for everything councils do, when in many councils rates cover only around half of operating costs. The remainder comes from grants, user charges and other income.
Financial pressure on councils grows when grant funding from State and Federal governments declines. The Hunter Joint Organisation points to Federal Financial Assistance Grants, which in 1996 were equivalent to 1 per cent of Commonwealth taxation revenue but have since fallen to less than half that level.
The result, it says, is growing pressure on council budgets, forcing difficult decisions about how limited funding is allocated, whether that is repairing potholes, upgrading playgrounds, maintaining community facilities or investing in other essential local infrastructure and services.
Councils also face cost shifting, where State and Federal governments require them to deliver services or meet additional obligations without providing funding to do so. Councils are calling for funding reform so they can continue to provide the infrastructure and services their communities need.
Councils are expected to maintain roads, parks, libraries, sporting facilities, waste services and community infrastructure while balancing growing community expectations and increasing costs. The Hunter Joint Organisation is urging residents to advocate for funding arrangements that match council responsibilities.
Join the discussion on Facebook.
