![Ratepayers paying hundreds of dollars extra from government cost shifting Ratepayers paying hundreds of dollars extra from government cost shifting](/images/transform/v1/crop/frm/3U96Ckn8G8R9iyYbnQvJY3/5c60ec87-77cd-4f2f-8ae3-0919d3b85aec.jpg/r0_0_2658_1695_w1200_h678_fmax.jpg)
The growth of cost shifting to councils is costing the average ratepayer up to $350 a year.
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These were the findings of the independent consultants Morrison Low on behalf of independent advocacy organisaiton Local Government NSW (LGNSW) for the 2021/22 financial year.
$1.36 billion of expenses has been passed by government on to councils to fund, according to LGNSW.
This is an increase of $540 million since the last report from the 2017/18 financial year and represents lost services, lost opportunity and lost amenity for all residents and businesses.
In a Mayoral Minute at the February 26 council meeting, Georges River Council Mayor Sam Elmir broke down the costs of services for ratepayers:
Emergency Service Contributions: Councils fund 11.7 per cent of Fire and Rescue NSW, RFS, and SES costs via an Emergency Service Levy (ESL). This is a total of $165.4 million. For Georges River Council this is $2.7 million annually, which equates to $40 - $50 per ratepayer.
Rate Exemptions: Councils must exempt certain organisations from paying rates, such as government departments, hospitals, land use for religious purposes, public and private schools. . These exemptions amount to $273.1 million. For Georges River Council this costs $3 - 4 million annually, about $50 - $70 per ratepayer.
Waste Levies: An additional $288.2 million in waste levies are passed onto ratepayers through waste collection fees. For Georges River Council this is $5 - 7 million annually which equates to $80 - $120 per ratepayer.
Library Funding Shortfalls: The State Government's original commitment to fund 50 per cent of the costs has significantly reduced. Councils have incurred $156.7 million in costs to cover the gap between the funding committed for library operations and the subsidies actually received. For Georges River Council this is $7 million annually, about $120 per ratepayer.
Companion Animals: Registration and microchipping, managing stray and dangerous animals, providing animal shelters and enforcing regulations around animal ownership have an estimated cost for Georges River Council $306,000 annually, about $5 per ratepayer.
Contaminated Land Management: Costs Georges River Council $500,000 annually, which equates to approximately $9 per ratepayer.
Protection of Environment Operations: Preserving the natural environment, managing waste, controlling pollution, and ensuring sustainable use of resources costs the Council $300,000 annually, approximately $5 per ratepayer.
Noxious Weeds: The management of invasive plant species that are considered harmful to the environment or public health costs the council $70,000 annually, approximately $1.20 per ratepayer.
Development Applications: The process by which local councils review and approve proposals for new construction and development projects costs the Council $800,000 annually, approximately $14 per ratepayer.
"Georges River Council does not dispute the value of these services in the community and supports the delivery, though requests a transparent and equitable system of cost recovery, to reduce the reliance on ratepayers," Georges River Mayor Sam Elmir said.
"State and Federal governments may impose new or expanded regulatory duties on local governments without providing the necessary funding, forcing councils to cover these costs through their revenue sources, predominantly rates.
"Other examples placing a strain on financial sustainability, include the gap between regulated service costs and the corresponding regulated fee and/or charge. These often don't fully cover the costs of various regulatory functions imposed on councils, leading to additional financial burdens passed onto ratepayers who do not utilise the service and must then subsidise."
"It means our communities get less or go without. They go without better roads, they go without better parks, they go without important community services that only councils provide, and they and their ratepayers are effectively paying hidden taxes to other levels of government."
The council decided write Premier, the NSW Treasurer, the NSW Minister for Local Government and Independent Pricing and Regulatory Tribunal (IPART) seeking that they urgently seek to address these costs through a combination of regulatory reform, budgetary provision and appropriate funding.