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Many NSW Councils at Breaking Point

A new study commissioned by Review Today has found that the infrastructure and funding crisis of local government in NSW is worse than originally identified by the Local Government (Allan) Inquiry in early 2006.  In particular, unless NSW local government with the help of the state and commonwealth significantly boosts its revenues, increases borrowings and restrains operating costs:

  1. Only one in two large councils is sustainable based on their present financial and infrastructure conditions. The rest  are vulnerable or unsustainable;
  2. Only one in four large councils is sustainable based on their projected financial and infrastructure conditions by 2015/16 with the remainder largely unsustainable; and
  3. Only a handful of large councils can expect an improvement in their financial and infrastructure condition over the next ten years. A third can expect deterioration.

Click Media Release: "Many NSW Councils at Breaking Point

Click 2007 FiscalStar Report: "The Financial Sustainability of NSW Councils"

Click 2007 FiscalStar Summary Table