Mayor Brian Ingram used his Mayoral Minute at the July Ordinary Meeting of Hilltops Council to address the ongoing issue of cost shifting to Councils, specifically, Hilltops Council, following a report that showed the shift is costing ratepayers around $500 per year.
Mayor Ingram said he wanted to raise awareness and advocate for action on the issue.
As part of the Mayoral Minute Mayor Ingram also asked Council to endorse a letter to the NSW Premier, Treasurer and the Minister for Local Government urging immediate action to address cost shifting through regulatory reform and appropriate funding support.
"The financial burden placed on local councils continues to grow, and Hilltops Council is not immune," Mayor Ingram said.
"The latest Local Government NSW (LGNSW) Cost Shifting report for 2023/2024 highlights a concerning trend: councils across NSW are absorbing an increasing number of responsibilities without corresponding funding from State or Federal Governments."
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The report, released by LGNSW and prepared by independent consultants Morrison Low, showed that Councils have been forced to absorb $1.5 billion in unfunded responsibilities, an increase of $140 million since the 2021/22 report according to Mayor Ingram.
"This equates to an average of $497.40 per ratepayer, up from $460.68 just two years ago," he said.
"Large rural councils like Hilltops Council are the most acutely affected by cost shifting from State and Federal Government."
According to the Mayor the report highlighted the cost shift was $571.10 per ratepayer - 14 percent higher than the average across all NSW councils.
"And to compound matters, the greatest increase in cost shift was experienced by large rural councils, there has been a 17.9 percent increase in the last two years compared to a 9.9 percent increase across all NSW Councils." Mayor Ingram said.
"These are not just numbers, it's a direct impact on our community.
"Every dollar diverted to cover State Government responsibilities is a dollar not spent on local roads, parks, libraries and essential services."
In his report to Council Mayor Ingram highlighted Hilltops and what the cost shifting means including:
- Delays in road maintenance and pothole repairs across towns and villages
- Reduced capacity to extend library hours and community programs
- Slower progress on vital infrastructure projects such as upgrades to recreation areas and revitalisation of town centres
"Our residents deserve better," Mayor Ingram said.
"The November 2024 Parliamentary Inquiry into local government funding called for urgent action to reduce cost shifting.
"That call must be heeded."
Mayor Ingram urged his fellow Councillors to approve the recommendations to note the findings in the report and write to the relevant NSW figures in regards to the issue.
"Hilltops Council stands with other councils across NSW in calling for reform," he said.
"We must ensure that local government is funded fairly and sustainability, so we can continue to deliver the services our communities rely on."
