Hilltops Council has moved to lodge a submission to the NSW Local Government Grants Commission in response to proposed cuts to distribution of Financial Assistance Grants. “Whatever methodology they used, it pointed to the fact that if it were to be used this year that Hilltops Council would lose 21 per cent of their Financial Assistance Grants,” mayor Brian Ingram said following last month’s meeting. Cr Ingram was upfront about Hilltops Council’s current financial struggles, and the impact it would have to take away much needed funding. A meeting between Hilltops Council and the Local Government Grants commission has now been organised, scheduled for early October, looking at the data behind the proposed changes. “I don’t want to dwell on it, but it’s very important that every ratepayer or renter is aware that when these situations come around and they talk about taking funding away from us, it will effect everyone,” Cr Ingram said. “It’s a really big concern, given that the federal government of the same persuasion finally acknowledged the struggles local government were having. “There will be a lot of noise to be made about it yet.” This is in reference to the Federation Compact, announced in July with the aim of strengthening ties between local councils and federal government. This is an initiative that has been supported vocally by Hilltops Council, making the recent “All indications were that we might receive some more funding, now we’re told we could be looking at less,” Cr Ingram added. In their submission council will aim to seek clarity on eight different points, addressing a range of factors and how they impact the data that has been produced. They include the significant financial impact on Hilltops Council, the characteristics of the council and sparsity of population, and the significance of the road network within Hilltops and the importance of maintaining them. “The methodology should adequately account for the cost of maintaining infrastructure over large geographic areas, rather than relying predominantly on population-based measures,” Cr Ingram wrote in his mayoral minute. “A reduction of 21 per cent in this important revenue source would place further pressure on council's capacity to sustainably fund its existing responsibilities and would result in reduced levels of service to the community. “It is important that the methodology intended to equalise financial sustainability does not have the unintended consequence of making financially constrained rural councils less financially sustainable.” This redistribution of funds is not unique to the Hilltops Council, with councillors across the state speaking out against proposed cuts. “There’s a lot of councils in the same boat, if not worse,” Cr Ingram noted. Lake Macquarie Council, Mid Coast Council, Central Coast Council and the City of Newcastle have joined forces to fight back against the $500 million they stand to lose. Closer to home, the Temora Shire Council has experienced a marked reduction in their allocation of Financial Assistance Grants over the last two years.
