The Interface Councils Group has relaunched itself as Outer Melbourne Councils to bring a sharper focus and more prominence to the needs and issues of communities in our outer suburbs.
For its key advocacy event for the year, Outer Melbourne Councils (OMC) has commissioned KordaMentha to prepare a report on the funding interface between local and state governments.
KordaMentha's report shows that local government makes a significant contribution to the provision of services and infrastructure to meet community needs. The report also explains the different accounting treatments for capital revenues and developer contributions that need to be understood when assessing the strength of councils' financial positions.
"We're pleased that KordaMentha recognises that local government manages its finances well and carries prudent levels of debt," OMC representative Lydia Wilson said.
Ms Wilson, the Chair of the City of Whittlesea Administrators said restrictions on revenue sources, rising costs and the needs of forecast population growth were creating an ongoing challenge for local government.
"Outer Melbourne Councils is calling on the State Government, and the Federal Government where applicable, to enter into a new partnership with local government to address growth challenges."
"This is the great public policy challenge of our time – how do we do growth better?"
"We need to meet the needs of today's communities, plan for tomorrow' communities and agree on how we pay for the services and infrastructure our communities need."
The KordaMentha report makes a number of recommendations which provide a financial platform to support further population growth.
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These include cost-reflective indexation of the rate cap, exemptions from the rate cap for infrastructure programs to provide for population growth, exemption for local government from the State's windfall gains tax where landholdings are repurposed for community benefit.
The report also highlights the impact that cost shifting has had on the local government sector, and the need for strategic partnerships between all levels of government on planning and funding infrastructure projects.
"In short, The KordaMentha report shows that Outer Melbourne Councils are doing what we can to meet today's challenges," Ms Wilson said.
"Tomorrow's challenges – and state government policy objectives - can only be met through a partnership between all levels of government working, and contributing, together."
Key Facts:
New KordaMentha report shows that local government makes a significant contribution to the provision of services and infrastructure to meet community needs
