6 July 2017 -Media Release
Residents will benefit from increased investment in infrastructure and better handling of developer contributions after Council adopted reforms to Section 94 (S94) contributions at Council’s 5 July meeting.
Under the Environmental and Planning Assessment Act, local governments can levy property developers to boost local infrastructure, known as Section 94 or Section 94A contributions.
Council inherited a range of different plans for managing these contributions, with the plans of the former Parramatta and Auburn Councils raising significantly less money than neighbouring Holroyd.
Cumberland Council Interim General Manager Malcolm Ryan said it had been a longstanding priority to introduce a consistent approach to Section 94 developer contributions.
“Council is working toward a new, whole-of-Cumberland plan that will lift the financial contributions of developers in the former Auburn and Parramatta LGAs, so that residents living there don’t miss out.
“In the short term we have introduced new measures to better track how money from one Section 94 contribution is used to pay for separate projects or infrastructure.
“There are strict rules about how money can be borrowed from one account, say from a contribution associated with a unit block in Wentworthville, to pay for infrastructure in another area, like a car park in Merrylands.
“Unfortunately the former Holroyd City Council did not adhere to best practice in this regard. The former Council overspent on the Merrylands Centre project by relying too heavily on Section 94 contributions from Toongabbie, Wentworthville and South Wentworthville catchment areas.
“This has left the new Cumberland Council with a $10.08million debt which will now need to be repaid.
“Council will still use existing S94 funds to deliver essential works outlined in the Section 94 Plans but the Merrylands public car park will be put on hold while a business case is developed.
“With Cumberland continuing to experience strong housing growth around its town centres, it’s important that investment in infrastructure like roads, footpaths, stormwater drains, parks and sporting facilities keeps pace with the needs of the community.
“For this to happen developers must pay their fair share and Council must handle the contributions carefully.”
