Goulburn Mulwaree's growth has forced a council shake-up of developer fees to help fund projects into the future.
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It's been 12 years a developer contributions plan was completed and much has changed since then.
The council's environment and planning director Scott Martin said that plan was drafted at a time of population decline when it was difficult to find a nexus with new development. Section 94A levies for additional public amenities and services were simply based on one per cent of total construction costs.
But now the population is growing and residential construction especially is "going off the charts." Planners said Goulburn Mulwaree had grown at an average 1.37 per cent annually since 2009 and current developer fees fell well short of the level needed for a growing region.
"The current contributions plan has not kept pace with this development and growing community expectations for regional class community and open space facilities," a recent report to councillors stated.
Mr Martin said ideally the contributions should be reviewed every five to six years to avoid a funding lag for new community projects.
"If we had looked at it then, we could have been funding things like the Wollondilly Riverwalk and the Performing Arts Centre through a process like this," he said.
Nevertheless, the council has managed to secure state and federal funding for those and other major projects.
Councillors endorsed a new contributions plan at their recent meeting. A draft was exhibited for 28 days from October 6 and did not draw any public submissions.
Cr Andrew Banfield quipped that it was either because no one had seen it or "everyone was happy."
Mr Martin believes it's the latter, largely because the plan results in reductions for developers in the Marys Mount area, the largest area it will affect. Substantial water, sewer and road infrastructure has already been completed there.
"Some development there may see a reduction in the order of $1500 to $2000," he said.
"But rural areas and outside of Goulburn may see an increase. The plan picks up on the fact we're doing a lot of regional infrastructure now and that needs to be apportioned across the area so one part isn't subsidising another.
"I think we didn't receive much feedback because a lot of developments will be better off in the short term."
Developers are likely to have a say at a forum on Tuesday, which will also discuss the planning department.
For a one bedroom home, the plan outlines $9,591 in developer fees for Goulburn and $6,272 in the rural catchment. A three-bedroom home attracts $17,706 in contributions for Goulburn and $11,577 for rural areas.
The plan identifies $203 million in future infrastructure, with $51m to be collected from developers.
"Fortunately, our master planning has been heavily influenced by the Housing Strategy so we have been able to identify things like road links, roundabouts and hard infrastructure that needs to be considered now and 10 to 15 years down the track," Mr Martin said.
"It also captures those regionally focused projects and ensures rural areas are buying into them."
Any outstanding works from the old plan, such as the completion of a link road in Clyde Street, will be rolled over into the new one. The new schedule will take effect from June 1.
Corporate services director Brendan Hollands told The Post that a Ducks Lane traffic reserve remained more than $1 million in deficit. The reserve was established many years ago to fund road infrastructure in expectation of industrial growth. But this had not occurred at the anticipated rate, resulting in a shortfall. The reserve will be reimbursed over 10 years from the council's unrestricted cash, or earlier if other funding opportunities arise.
The council's push to align developer fees with other growing regions comes on the back of its submission to the NSW Productivity Commission's review of the contributions system.
The Commission has found that state rate pegging "acts as a disincentive to development and growth" as it "constrains councils' fiscal sustainability and flexibility."
It's a view shared by Goulburn Mulwaree Council general manager Warwick Bennett who says councils must be given greater freedom to fund services and projects.
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