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Background to the Sustainability Levy

 

Index

Introduction

In recent years Council has engaged with the community in preparing a range of key plans to identify and address needs within our community and to enable Council to better focus its limited resources on identified priorities.

Completed Council plans have included the Sustainability Action Plan, Cultural Action Plan, Social Plan, Road Safety Plan and a town centre revitalisation plan, known as the Lane Cove ALIVE Strategic Action Plan.

Community feedback has highlighted the importance of sustainability for our community. Concerns such as global warming, climate change, water and energy use, bushland protection and creek rehabilitation are seen as important locally as are the long term health and vitality of cultural, economic, environmental and social systems generally.

“A sustainable society is one that satisfies its needs without diminishing the prospects of future generations.” Lester Brown, Worldwatch Institute

Since adoption of Lane Cove’s Sustainability Action Plan “Think Global Act Local – Actions for a Sustainable Lane Cove” in December 2005, a range of projects have been undertaken often inactive partnership with community groups or individuals.Whilst actions so far are positive, progress is hindered by Council’s limited funding base.

Council's Operating Environment

Council over the past ten or more years has, like many other councils, strived to increase the efficiency of its operations in order to remain financially viable, and afford the new services and facilities which the community needs.

For almost 30 years the State Government has pegged the amount of income which any council can raise from its rating revenue, its major source of income.

There is not a lot of detailed research on the impact of Rate Pegging. Suffice to say, that with an artificial limit on revenue (rate pegging) rising costs in excess of CPI, coupled with cost shifting from other levels of government, it is difficult to meet the community’s needs. As an example, in 1980, state government funding accounted for 23.6% of the total funding required to operate the NSW public library network. Since that time this contribution has declined significantly and now comprises approximately 7.8% of total funding. Council has made up the shortfall. In the same period of time, Local government has also accepted responsibility for an increasing range of services to the community. In an effort to manage these trends,

Council has continued its focus on reducing costs and since 2004, has attempted to increase income from alternate streams, which has marginally decreased Council’s dependency on Rates. It has now reached the point where the savings expected from any further “efficiencies” and cost reductions will be minimal. In order to deliver new facilities and programs aimed at improving the sustainability of our community, a new approach to secure the necessary revenue is needed.

 

Sustainability logo

Fast Tracking Sustainability

To increase the pace at which we can implement
those actions that will address sustainability
concerns highlighted by the community, Council carried out consultation in April and May 2007 in relation to seeking permission from the Minister for Local Government to permit a special rate variation (levy) of six percent, to be utilised specifically for sustainability projects. The Minister reviewed Council’s submission and the
results of the consultation. In June 2007 the Minister approved the special rate variation (levy) of six percent, which will apply on an ongoing basis specifically for new sustainability projects.


The consultation included: -

• A Deliberative Poll of 400 ratepayers, which
found 79% of respondents supporting the levy;
• A staffed exhibition and survey over 3 days in
the Plaza, at which 167 surveys were collected,
with 85% of respondents supporting the levy;
• A two page information spread in the April
Council News;
• An email to all registered members of the
community interested in the environment and any matter Council consults on;
• A website exhibition and survey which received
33 surveys, with 64% of respondents supporting
the levy;
• Static public exhibitions at the Council
Administration Centre and Libraries; and
• Quarter page colour public notices placed in the North Shore Times and the Northside Courier.

What Sustainability projects are proposed?

Council has prepared a detailed plan for the projects to be funded in the first three years. The projects address the key areas of Environment, Climate Change, Water, Social and Cultural, Economic and Community Capacity Building.

Council’s Commitment

In seeking this levy, Council has made the following commitments:

1. The levy will not be used to fund Council’s
day-to-day activities which are currently funded
through normal Rates and other funding sources.

2. There will be no decrease in existing funding levels, the levy will be used to deliver additional projects.

3. Each year as part of its annual Management Plan consultation, Council with consult on the projects to be funded by the levy for the next 12 months.

4. Council will account for the funds from the levy
separately and report the progress of projects and expenditure on a regular basis. This will include advice to ratepayers with the annual rate notice of the projects to be undertaken in the year, progress reporting on Council’s website and reporting of achievements and expenditure for the year in the Annual Council Community Report.

5. Every 5 years, Council will conduct a deliberative poll and other consultation to allow the community to formally assess the success of the levy.

Background Information