How councils are reliant on govt grants to provide basic services
Let’s examine the grip on NSW councils by the state and federal governments!
Why? Because roads and infrastructure works, for example, are dependent not only on Council revenue from rates and fees, but also NSW and federal government grants.
And considering some grants are hand-picked by ministers to favour certain electorates (called pork barrelling), it raises questions around equity and integrity in governance.
The Echo asked all NSW election candidates their position on this.
According to Byron Council’s Director Corporate and Community Services, Esmeralda Davis, ‘Grants are a significant portion of Council revenue, and in 2022, [equate to] more than Council raises in general land rates’.
‘Grants are split by operating and capital. If a grant is operating, it is used to fund an activity or purposes on an operating basis, whereas capital grants are provided for the renewal of existing assets or construction of new assets’.
A table provided to The Echo by Davis showed that in 2022, total grants amounted to $33,339,000, while general rates revenue was $26,863,000. In 2021, grants totalled $22,505,000 against a general rates revenue of $26,106,000. Davis says, ‘The big difference between 2022 and 2021 in terms of overall grant revenues is essentially funding associated with the February/March 2022 flood events, and this will continue at elevated levels for the next few years, as Council restores the damaged infrastructure’.
‘In 2022, 26.5 per cent of Council’s overall revenue came from grants, whereas general land rates provided 21.3 per cent, and conversely for 2021, 19.7 per cent of Council’s revenue came from grants, whereas general land rates provided 22.9 per cent.
‘There are currently 72 grants available from differing sources, including the NSW and federal governments, and philanthropic programs’, Davis said, adding ‘Council is also not eligible for many of them owing to the grant being targeted at differing sectors, eg manufacturing, health, research’.
Councillors tabled grant applications, both successful and not, at last Thursday’s meeting.
Recent successful grants included a floodplain management plan ($266,667), topping up funds for the Byron Community Hub ($1,236,956), helping with pothole repair ($1,334,231) and hosting Australia Day ($30,000).
Unsuccessful grants, according to the staff report, were public amenities upgrades at South Beach Road, Brunswick Heads ($280,000) and former Mullumbimby Hospital site grant funding ($250,000).
The importance of government grants for Council’s operations was highlighted by councillors during the meeting.
For more about Council’s grants, visit www.grantguru.com.au.
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