funding local roads - local government nsw warren - nr… · establish road stewardship maintenance...

Funding local roads LGNSW Finance Summit

September 2017

How do we create

shared value?

Our shared value

Business

Member Social

Safe mobility Sustainable communities

Access for all

14/09/2017 4

Safe mobility Infrastructure funding

Road maintenance

Safer driver campaigns

Using technology to create safer and connected cars

14/09/2017 5

Access for all More transport options

Multi-modal travel

Transparent fuel information

Cost of mobility including road user charging

14/09/2017 6

Sustainable communities

Improving connectivity

Increasing employment and business opportunities

Growing tourism in the regions

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The current road

infrastructure deficit in NSW is in the order of

$100 billion

Crashes on NSW roads

cost the economy

$35.7 billion

Congestion in Sydney

costs $6.9 billion and is expected to rise

to $12.6 billion

by 2031.

14/09/2017 8

40.1 cents per litre contributed

to fuel excise

14/09/2017 9

34.4 per cent is returned to road funding

Fuel excise collection 2008-09 to 2019-20 ($ billion)

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5.46 7.55

5.09

13.15 14.29 14.99

15.88 16.33 17.53

8.03 8.56 9.17 9.76 10.14 11.02

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

20.00$

bill

ion

s

Australian Government Road Funding Fuel Excise Collected Net Fuel Revenue

Road funding as a percentage of total fuel excise collected

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52.1%

39.9%

26.6%

49.9%

22.2%

37.3%

29.0%

34.4%

49.5% 46.3%

36.7%

29.0%

20.6%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

12

Funding local roads NSW & ACT Roads

13

Yearly report, been completed since 2012-13

Used to support advocacy for infrastructure investment and reform

Sourced from annual financial returns – Special Section No. 7

Evaluated recurrent funding: Roads to recovery funding Financial Assistance Grants – Local Road Component Non State Road Assistance – NSW Grants (Block Grants, REPAIR Program)

Funding local roads – context

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Total local council road infrastructure backlog 2012/13 to 2015/16 millions

14/09/2017 15

3,867.9

3,180.6

1,730.8 1,958.6

500.0

1,000.0

1,500.0

2,000.0

2,500.0

3,000.0

3,500.0

4,000.0

2012/13 2013/14 2014/15 2015/16

Infr

ast

ruct

ure

ba

cklo

g (

$m

illio

n)

Total metropolitan and regional council road infrastructure backlog 2012/13 to 2015/16 millions

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927.2 739.1

399.8 398.2

2,940.7

2,441.5

1,331.0 1,560.4

-

500.0

1,000.0

1,500.0

2,000.0

2,500.0

3,000.0

3,500.0

2012/13 2013/14 2014/15 2015/16

Infr

ast

ruct

ure

ba

cklo

g (

$ m

illio

n)

14/09/2017 17

Backlog has increased

13.2 per cent $1.73 billion to

$1.96 billion

80% NSW road network is

local roads

Regional council backlog $1.33 billion to $1.56 billion

17.2 per cent

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$5.3 billion average annual cost of road trauma

Hunter North Coast

40% of regional backlog

Roads to Recovery to clear regional infrastructure backlog

x8

Funding local roads – results

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Council Infrastructure backlog % change % of total infrastructure backlog

2014-15 2015-16 2014-15 2015-16

Metropolitan Councils 399.8 398.2 -0.4% 23.1% 20.3%

Regional Councils 1,331.0 1,560.4 17.2% 76.9% 79.7%

Total 1,730.8 1,958.6 13.2% 100.0% 100.0%

Local council road infrastructure backlogs 2014-15 and 2015-16 ($millions)

Funding local roads – results

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Council Infrastructure backlog ($ million)

Road Grants ($ million)

Deficit/ Road Funding

Maintenance surplus/shortfall

2015-16 % change 2015-16 % change 2015-16 ratio 2015-16 ($m)

Metropolitan Councils 398.2 -0.4% 134.3 14.4% 3.0 11.2

Regional Councils 1,560.4 17.2% 543.8 2.0% 2.9 -11.2

Total 1,958.6 13.2% 678.1 4.2% 2.9 0.1

Assessment of local council roads 2015-16 ($millions)

Funding local roads – results

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Council Infrastructure backlog ($ million)

Road Grants ($ million)

Deficit/ Road Funding

Maintenance surplus/shortfall

2015-16 % change 2015-16 % change 2015-16 ratio 2015-16 ($m)

Sydney North 55.6 1.5% 24.0 10.4% 2.31 -0.9

Sydney Central/South 132.2 -7.9% 43.6 18.4% 3.03 2.0

Sydney South West 210.4 4.4% 66.7 13.3% 3.15 10.1

Metro Councils 398.2 -0.4% 134.3 14.4% 2.96 11.2

Assessment of local council roads 2015-16 ($millions)

Funding local roads – results

14/09/2017 22

Council Infrastructure backlog ($ million)

Road Grants ($ million)

Deficit/ Road Funding

Maintenance surplus/shortfall

2015-16 % change 2015-16 % change 2015-16 ratio 2015-16 ($m)

Central 81.9 2.1% 14.6 4.9% 5.61 3.8

Hunter 194.2 -5.8% 43.4 3.8% 4.48 2.7

North Coast 430.7 -11.1% 87.3 2.2% 4.94 -13.8

New England/N West 107.8 -1.9% 72.0 1.4% 1.5 0.6

Blue Mountains 22.9 10.1% 9.9 -0.9% 2.32 5.9

Central NSW 109.9 14.4% 89.1 1.5% 1.23 -8.8

Assessment of local council roads 2015-16 ($millions)

Funding local roads – results

14/09/2017 23

Council Infrastructure backlog ($ million)

Road Grants ($ million)

Deficit/ Road Funding

Maintenance surplus/shortfall

2015-16 % change 2015-16 % change 2015-16 ratio 2015-16 ($m)

Far west 60.3 68.1% 35.1 1.2% 1.72 -4.6

Murray 43.5 -13.1% 44.1 2.4% 0.99 -1.8

Riverina 321.2 524.7% 64.5 0.4% 4.98 4.6

Illawarra/South Coast 115.1 -15.9% 33.8 4.0% 3.40 -1.2

Capital Country 41.2 -2.2% 37.0 2.3% 1.11 3.3

Snowy Mountains 31.7 85.9% 13.0 2.0% 2.45 -1.7

Regional Councils 1,560.4 17.2% 543.8 2.0% 2.87 -11.2

Assessment of local council roads 2015-16 ($millions)

Clearing the backlog Funding local roads

24

Funding

Fast track funding of the Roads to Recovery program

Provide a % of the fuel excise levy to local councils to fund maintenance

Expand the Local Government Infrastructure Backlog Fund

Provide local government with low interest region-specific infrastructure and investment funds

Funding local roads – recommendations

14/09/2017 25

Reform

Establish Road Stewardship Maintenance contracts to improve infrastructure delivery

Reform Australian and NSW Government funding programs for local councils

Conduct a financial audit of the annual Special Schedule 7 to improve accuracy of infrastructure and funding requirements

Funding local roads – recommendations continued

14/09/2017 26

Thank you