West Dapto residents could face a rate hike to help fill a funding black hole of more than $600 million.
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But Wollongong City Council is hoping the state will help foot the bill instead.
According to Wollongong City Council business papers the council will need to find $632 million to build the necessary infrastructure for West Dapto.
The council has $1.2 billion in land and infrastructure costs but is only allowed to claim a maximum cap of $30,000 per lot in developer contributions.
That makes the total amount in developer contributions the council can receive is $596 million, well short of the $1.2 billion it has to fork out.
A report that goes before council on Monday night states “the cost of local infrastructure is increasing every year by CPI, however the income is limited by the cap”.
Which means the $632 million black hole will only get bigger unless a solution is found.
The council report floats several ways of making up the shortfall.
The least popular – at least with residents of West Dapto – is the creation of a special rate variation for those who live in the area.
A second option would see the developers pay the full cost of the development, which may deter investment.
Wollongong Lord Mayor Gordon Bradbery said the council’s preferred option was to look at increasing the amount developers are required to pay and looking to make up the remainder with a combination of NSW government funding and council borrowings.
Cr Bradbery said West Dapto incurred more costs than other developments because it was on a flood plain and needed a number of bridges and other expensive infrastructure items.
Cr Bradbery said a rate rise “is not on the cards at this stage.”