$10 million in cost shifting revealed

Hornsby Shire ratepayers lost $9.9 million in the 2011-12 financial year because of cost shifting, which occurs when the state and federal governments transfer responsibilities to local councils without giving adequate funding.

This equates to 8.8 percent of Hornsby Shire Council’s total operating income (before capital costs).

“This is another sign that local government needs restructuring,” Hornsby Mayor Steve Russell said, following last night’s council meeting where the figures were revealed.

“In many cases local government is best placed to deliver services, but it’s important that councils have adequate resources to do so.”

Some of the costs that are being borne by ratepayers include the waste levy and the fact the street lighting subsidy has not kept pace with expenditure.

Another example is $165,000 that Hornsby Shire Council spent providing rent-free accommodation, as well as repairs, for four Baby Health Centres – a cost that should have been borne by NSW Health.

“The $10 million that is lost by ratepayers each year is enough to cover the $8.5 million infrastructure backlog that currently exists in the shire,” Mayor Russell said.

“It doesn’t matter what level of government you serve, if you have been elected by the people you owe it to them to provide the best possible services and value for money.

“That is why we all need to seriously consider the options for restructuring local government.”

For more information contact media officer Nick Cook on 9847 6662, or visit http://www.hornsby.nsw.gov.au/