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Saturday, 31 January 2015 23:01

Section 94 Developer Contributions

Much of Ku-ring-gai’s money has come from apartment building construction. Contributions appear to be about $30,000 per unit with most going to local roads and drainage, although this varies by suburb.


Ku-ring-gai Council Section 94 Development Contribution Plan
Hornsby Council Section 94 Development Contribution Plan

Ku-ring-gai Council’s unspent contributions amounted to $60.5m at 30 June 2014. Hornsby’s was $14.4m. Warringah had $24.4m, Ryde $35.5m, Willoughby $12.9m and North Sydney $18.3m. This is a small sample but it does appear that Ku-ring-gai’s position is somewhat extreme. They haven’t been spending the money.

Ku-ring-gai’s recent history ($m) (right) shows that the issue is of long standing.

‘Transfers in’ represent contributions received plus interest attributable on contributions invested. ‘Transfers out’ are for money spent on projects.

Ku-ring-gai does not detail fully the latter. There is some information in the General Annual Report about projects being progressed or completed funded fully or in part from section 94, and a very broad summary at Note 17 ($m).

It’s worth of note that roads are in deficit (below left). The same presentation for Hornsby ($m) (below right) indicates a somewhat different allocation of funds.

  KRGCcontrib  Hornsbycontrib

Ku-ring-gai’s Section 94 Plan has a schedule of works which is quite detailed. Of note for STEP members is the provision of $17m for walking tracks – see p208.

Council’s operational plan has very detailed capital expenditure listings showing the source of funds – general, section 94, capital grants etc for the current year and also for 2015–16.

On merger combining these two section 94 plans or setting up a new one could be interesting.