Local government is supposed to be the level of government closest to the people, the place where communities have a real say in the issues that shape their everyday lives. After all, that’s the reason I put my hand up to do this thankless job for very little money. But the main thing I’ve learnt in the past four years is that the system is increasingly rigged to ensure councils can’t succeed. Ballina Council’s current proposal for a modest Special Rate Variation (SRV) is a symptom of a much deeper structural problem.

For years, councils have been increasingly squeezed by relentless cost shifting from the NSW Government. Services and responsibilities, from roads and waste to libraries, recreation, stormwater and community infrastructure, have quietly been downloaded onto local government without corresponding funding. According to Local Government NSW, this cost shifting costs local councils more than $1.36 billion every year. That’s money councils have to find from somewhere else, usually by cutting services, deferring maintenance or asking ratepayers to chip in more.

The COVID-19 pandemic and years of historically high inflation have compounded the problem. While the cost of building and maintaining infrastructure and delivering services has soared, councils’ rate income has been capped. While the rate cap has recently increased and inflation has eased, it’s important to remember that in my first term of Council, our rates were capped as low as 2.5%, while inflation was almost 7%. Inflation on building and construction materials, which make up a large part of Council’s expenses, was over 10% and has remained high. This has left us playing catch-up and staring down a $4.4 million deficit in the general fund.

Then there’s the $20,000 soft cap on developer contributions per lot. This outdated limit means councils like Ballina can’t properly capture the true cost of new development. So while our population grows, we’re left holding the bill for the roads, parks, drainage and community facilities those new residents rely on. On top of this, many services councils are required to deliver, including planning and other statutory services, are capped at fees below the cost of providing them. Imagine running a business where every product you sell is sold at a loss. That’s the reality for councils.

And while we’re being squeezed financially, our power to shape our own communities is being eroded. Recent and proposed amendments to the Environmental Planning and Assessment Act are just the latest in a string of State Government moves to centralise planning powers, cutting communities and councils out of decisions that directly affect them. It’s a deliberate strategy: starve councils of funding, strip away their authority, and make it harder for local people to have a voice.

As a Councillor, I take the financial stewardship of our community’s assets very seriously. We manage hundreds of millions of dollars in critical infrastructure and provide meaningful employment for hundreds of staff. Having spent years raking through financial statements and budgets, I can assure you that, unlike the bloated bureaucracy of State Government, Ballina Council is a lean, efficient organisation that delivers enormous value on a tight budget.

The reality is that almost a quarter of our entire budget is spent on maintaining our ageing asset base, which is being further strained by a changing climate, particularly increasing rainfall and floods. We’re almost entirely reliant on grants from the State Government to cover ongoing maintenance. And when we do receive grants to repair infrastructure, we’re often prevented from “building back better” to withstand future weather events.

These are some of the reasons why I support Council’s proposed Special Rate Variation. For an extra $3 a week, it’s a modest and necessary investment in the future of our community so we can continue to maintain our infrastructure, deliver services, and keep jobs in our community.

The truth is, councils are being set up to fail. But it doesn’t have to be this way. We need to reclaim local democracy, end cost shifting, give councils the tools to plan and fund their communities properly, and restore the voice of local people in local decisions. The State Government may be determined to see councils fail. But I’m determined that this one won’t.

Kiri Dicker

About

I am an elected Councillor for Ballina Shire, a mum, a Lennox local. I blog about local issues