Paying for community infrastructure

Paying for community infrastructureLake Macquarie City Council holds $70 million in unspent section 94 contributions, 5 times as much as the City of Newcastle.In 2013-14, they spent only 36% of the $11.2 million in contributions paid by developers.The council now wants to tax developers a further $92 million to pay for an infrastructure plan which covers 16 suburbs of eastern Lake Macquarie.The plan includes a new swim centre, sports fields, parks, road upgrades, playgrounds, library upgrades, dog exercise areas, community gardens, BMX tracks, cycleways and trails. The plan forecasts the new community infrastructure will be needed to cater for an extra 12,0 people in the area by 2025. Ratcheting up previous growth projections and setting unambiguous targets for community infrastructure is a sensible planning principle.But keeping pace with population growth and getting enough houses on the ground to satisfy demand will require changes to structure and strategy.Only 29% of the new dwellings needed to pay for Council’s plan are currently being produced. At current rates, it will be 2048 before all the projects are funded.It means Council needs to pull all the levers at their disposal to boost new housing supply. Rezoning significant parcels of land for medium density housing has been a good start. Achieving a sustainable balance between biodiversity and the economic and social benefits of development is the next challenge for Council.The new contributions plan is also narrow in application – applying only to the Charlestown Catchment, less than 20% of the city’s suburbs. While most of the short-medium term growth is expected to occur in these areas, these types of plans should not operate in isolation.Its another reason the NSW Government should fast-track the Hunter Growth and Infrastructure Plan – a blueprint that meets our aspirations for the future. With a rigorous monitoring, reporting and intervention framework, such a regional plan could help meet demand and arrest the dramatic decline in affordability for future generations.And for the residents of eastern Lake Macquarie, only a massive increase in housing supply can deliver the community infrastructure they seek.