Palerang has joined with other Councils to voice concerns about Planning Minister Sartor's plans to abolish Section 94 contributions for community facilities.
Palerang Council says that "Parks, swimming pools upgrades and new community facilities planned for Palerang are under threat because of a State Government plan to slash development contributions."
The changes are due within weeks, and councils will then only be able to collect development contributions to fund infrastructure that services an individual development site or precinct.
"Not only is the Government planning to slash the amount of funds councils can collect in development contributions, but it is also going to dictate what the remaining funds can be used for," Cr Jim Maclachlan said.
"For Bungendore we have worked out we'll lose $2.9million planned for crucial basic infrastructure like parks, footpaths, the swimming pool upgrade and other community facilities if the Government's changes proceed" he said. "That reduction in funds would pose a threat to the planned playing fields for Bungendore. At best construction of them would be delayed, but there is a very real chance they would not proceed."
Council says that "the impact on the villages of Captains Flat and Braidwood are not as great because Council does not expect the same level of development as in and around Bungendore.
Mayor Maclachlan said "cutting development contributions would not only threaten planned facilities in new areas, but cause overcrowding of, and reduced access to, existing facilities," Cr Maclachlan added. "Councils are already financially stretched...This particularly applies to Palerang following the 2004 amalgamations" he said.
"We're calling on the Government to freeze implementation of the changes."
Palerang's General Manager Peter Bascomb said that the S94 reforms were initiated by Treasury in an attempt to lower the cost of land. Treasury was responding to allegations of misuse of the S94 scheme by some Councils.
"The allegations were that some Councils were asking developers to pay 100% for community facilities that would be shared with existing residents" Mr Bascomb said.
"It is exactly this sort of abuse of the S94 system that some members of the community and media have been advocating for Braidwood. Even if Palerang had followed the advice of community groups and media commentators any such S94 plan would now have to be scrapped."
"The real problem for Palerang is that the Government has swung the pendulum too far the other way. Not only will Council not be able to expect 100% contribution from developers, it will not be able to collect that part of costs of new or upgraded facilities that could be attributed to increased demand generated by a new development."
"Council has shown leadership in sticking to the true spirit of the S94 legislation against strident opposition from some groups and the media. Not having contributed to the perceived problem, Palerang can now assume the high ground in any negotiations with the State Government." Mr Bascomb added.
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