Infrastructure money scrutinised by public

The City of Sydney’s collection and use of money for infrastructure has come under fire by community activists who claim greater transparency is needed.

The Council was accused last month of ‘hoarding money’ by accumulating up to $650 million in unspent infrastructure levies. The City of Sydney spent just half of the $25 million it raised in 2010-11, according to a report in the Daily Telegraph.

At the time, a spokesperson for the City said: “[The Council] contributes most of the infrastructure costs planned for the future. The City has planned for $1.6 billion in infrastructure in the period to 2021, with just $367 million anticipated to come from development contributions.”

President of the Potts Point and Kings Cross Heritage Conservation Society, Andrew Woodhouse, wrote to the City of Sydney calling for greater transparency and accountability in the City’s financial reporting, suggesting they implement an online audit trail so locals could see how the money was being spent.

The Conservation Society called for the infrastructure funds amassed through Section 94 Developer Contributions to be used on local heritage sites or, if not spent, returned to ratepayers.

The Lord Mayor Clover Moore MP said information about the allocation of funds is readily available.

“The City of Sydney Development Contributions Plan 2006 includes a program of works to be delivered, or have their cost recouped, through the contributions paid,” she said.

“The City publishes the details of where the money has been spent in the City’s Annual report.”

She also restated the Council’s position that is it “necessary to accrue money in advance to pay for future infrastructure projects in full.”

One such project is the proposed multipurpose community, aquatic and recreation centre at Green Square, expected to finish by 2016.

But Mr Woodhouse said his group is dissatisfied with the response. “Our concerns remain unanswered.”

Section 94 funds must be spent in the same area in which the money is raised.

However, Woodhouse said: “The Annual Report does not, as claimed by the Lord Mayor, show where our money has been spent: it only shows what it has been spent on”.

There is currently no way to track where the money is going, he said.

“We reiterate our request for a simple online page showing [where] the money has originated, and where it has been spent in our area.”

A spokesperson for the City maintained that developer funds can be held in reserve for specific projects, which are set out in the City’s Section 94 Contributions Plan, and approved and adopted following public exhibition.

“Contributions go towards upgrading roads, parks and community facilities such as pools and libraries,” she said.

“A large portion of the funds are committed to the Green Square Urban Renewal Area and can’t be delivered until development starts on the town square.”

By Michael Safi