At its Ordinary Council Meeting held 22 May 2023, Willoughby City Council adopted a Mayoral Minute outlining its strong opposition to the NSW Government's last minute decision to impose an enormous Emergency Services Levy (ESL) cost increase on councils for 2023/24. This will impact Council's budget by $500,000.
The NSW Government recently announced plans to scrap the ESL subsidies which will shift costs back to councils, without any mechanism for councils to recover costs. Council's ESL has increased by 63 per cent since 2018/19.
The timing of this development is particularly challenging for councils as it comes so late in the local government budgeting cycle, well after IPART's rate determination for the coming financial year and after budgets have been developed.
Willoughby City Mayor Tanya Taylor said that Willoughby strongly supports a well-funded emergency services sector and the critical contribution of emergency services workers and volunteers (many of whom are councillors and council staff). However, it is essential that these services be supported through an equitable, transparent and sustainable funding model.
"We thank Local Government NSW for representing councils on this matter and hope that our combined voices will be heard," Mayor Taylor said.
Council resolved unanimously to join with other NSW council to write to key members of parliament and agencies on this matter.
Council will write to the Treasurer, the Minister for Emergency Services, the Minister for Local Government and local State Members expressing our opposition to the NSW Government's last minute decision to impose an enormous Emergency Services Levy (ESL).
We will highlight that the poor timing of the notification as councils have already developed the Operational Plan, annual budget and the Long Term Financial Plan and highlight the concern that the Government's decision will lead to a reduction in important local services and/or the cancellation of necessary infrastructure projects.
Council will call on the NSW Government to take immediate action to restore the ESL subsidy in 2023/24 and urgently introduce legislation to decouple the ESL from the rate peg and develop a fairer, more transparent and financially sustainable method of funding critically important emergency services in consultation with local government.
Council will also write to the Chair of the Independent Pricing and Regulatory Tribunal (IPART) advising Council's forced emergency services contribution is manifestly disproportionate to the 2023/24 rate peg, which has resulted in additional financial stress. And we will write to the President of Local Government NSW seeking the Association's ongoing advocacy to bring about a relief in the burden of Councils' emergency services contribution.
A copy of the full Mayoral Minute is available on our website.
