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$30m projects we'd lose

Kelly Robinson

PENINSULA councils have invested almost $30million  in vital community projects over the past five years using Section 94 funds  the very income source the State Government is trying to take over.

Councils from across the state are at loggerheads with NSW Planning Minister Frank Sartor over his controversial reforms to the planning system.

Community works such as beach promenade redevelopments, countless park improvements and town centre improvements have flourished using Section 94 funds.

Pittwater Council alone has spent more than $13million ofits funds over five years on projects such as the kiosk at Winnererremy Bay, the Fern Creek Corridor H (Stage 1) and the Dunbar Park landscape improvements.

Manly Council has also been spending up big on its community with renovations to Balgowlah Town Centre, renovations to the Manly Senior Centre and Meals On Wheels renovations and ongoing work to Ocean Beach Promenade. Warringah Council residents have benefited from its Section 94 kitty paying for major projects including the Dee Why Beach Reserve upgrade, the council's coastal walk and the Dee Why Town Centre.

If Mr Sartor were to take control of the Section 94 funds, projects such as these would be very unlikely to proceed. He claims councils are sitting on more than $1.3billion in Section 94 levies instead of spending them on their communities. However, two of the councils with the highest mount of Section94 funds are run by State Government-appointed administrators.

Warringah and Liverpool councils hold $25.1million and $68.5million respectively in thebank. Warringah administrator Dick Persson said he was very comfortable with how he had distributed the council's Section 94 funds. ``Since I've been administrator, I have increased the rate of expenditure,'' he said. ``There is currently around $25million in unspent funds and half of that has been allocated to the Dee Why Town Centre. Personally I think that's how to get the best value out of Section 94  on the big projects.''

A Liverpool City Council spokeswoman said that more than $24million had been allocated to be spent in its current budget.

``These funds are part of the total Section 94 reserve of $68million. These funds have been collected to ensure that these areas are provided with all the necessary services as they are required. Liverpool City Council being under administration has not affected council's Section 94 infrastructure program.''

A spokeswoman for Mr Sartor's office said both councils had significantly reduced their Section 94 accounts since being taken over by administrators.

``For both Liverpool and Warringah councils, since an administrator was appointed the amount of unspent Section 94 contributions has been significantly reduced,'' she said.

``Recent changes to Section 94 arrangements are intended to improve housing affordability for families.''

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