Abstract
Population expansion in many New South Wales (NSW) local government areas (LGA) has resulted in an increase in demand for local infrastructure and services that has far outstripped sources of local government revenue. This paper looks at two important sources of local government revenue in NSW, municipal rates and Section 94 contributions, as a source of funding increased demand and maintenance of infrastructure. It examines some recent and potentially long-term trends of both these revenues within different economic climates. An analysis and comparison of data over the period from June 2006 through to June 2010 against data collected for the period ending June 1993 forms the basis of this research. The research objective is to compare changes in the relativity of these revenue types and assess their application as a source of local government revenue. Data collected from the Department of Local Government NSW is compared with the findings of an earlier study, conducted by Barnes and Dollery (1996), in determining their relativity. The provision and maintenance of infrastructure by local government is essential for growth in the economy and is a valuable asset to be used by the community. Two types of funding for this infrastructure, among others, is sourced from municipal rates and developer charges levied under Section 94 contributions either by the developer providing the infrastructure, or a contribution towards its funding (Barnes and Dollery 1996).
Highlights
Many local governments have been forced to defer infrastructure projects because of financial deficiencies
The Global Financial Crisis (GFC) of mid 2008 to the present has provided the opportunity to provide a contemporary look at the volatility of these revenues for local government in New South Wales (NSW)
The national study by PricewaterhouseCoopers (2006), found that inadequacies in the structure of local government funding has meant that traditional revenue, including rates and Section 94 contributions are not adequate to support the required services and essential infrastructure of local government, in rural and remote local government areas (LGA)’s where rates cover less than 40% of the required finance and even less for Section 94 contributions (PriceWaterhouseCoopers 2006)
Summary
Commonwealth Journal of Local Governance Issue 11: December 2012 http://epress.lib.uts.edu.au/ojs/index.php/cjlg. Vince Mangioni Senior Lecturer School of Built Environment Faculty of Design Architecture and Building University of Technology, Sydney
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
