THE funding model of councils is under the microscope.
The Minns’ Government has asked the Independent Pricing and Regulatory Tribunal (IPART) to assess the key factors impacting the financial stability of councils. IPART will review the resources available to councils, the ability of council to fund services, infrastructure, and ongoing expenses, and identify ways to improve budgetary performance.
‘The financial sustainability of councils is one of the most significant issues facing local government in this state,’ says Ron Hoenig, Minister for Local Government. ‘With the cost of delivering core services to communities rising, it’s critically important councils are financially sustainable, but that needs to be balanced with the impact on tightening household budgets.’
With last year’s alterations to the rate peg methodology, councils can be more certain of the income they receive through council rates. The NSW Government is conducting this IPART review to ensure council are being fiscally responsible.
IPART will make recommendations on the visibility of councillors and the community over the performance of councils; the current budget of councils; on whether the funding model will sustainably support communities; and how better planning can improve performance, transparency, and accountability.
‘There needs to be a closer examination so that the solution to financial challenges is not increasing revenue through raising council rates or seeking financial support from the State Government,’ says Minister Ron Hoenig. ‘This review is a ley election commitment and will help ensure this vital tier of government can continue to deliver essential services to NSW communities.’
The draft Terms of References are open for feedback until the 15th of March 2024. IPART will develop a report after the Terms of Reference have been finalised.
To submit feedback, visit www.haveyoursay.nsw.gov.au/local-government-tor
