The levy is split three ways, with insurance companies paying 73.7 per cent, State gGovernment 14.6 per cent and local councils 11.7 per cent – with annual increases for the councils previously covered by the NSW Government.
The council has written to the Premier and relevant ministers calling for the subsidy to remain and a thorough review of the ESL, “with a view to implementing a fair, transparent and financially sustainable funding method that does not adversely impact local government”.
The council had budgeted for $3.2 million in its 2023-24 budget for the ESL, but has been invoiced for $3.9 million.
Mayor Lake said councils are already under great pressure from the impacts of a pandemic, high inflation and the impending decision on a new award for employees.
“This decision will challenge Cumberland Council in its work to deliver on current service levels while maintaining long-term financial sustainability,” the Mayor told the council.
“We need to strongly oppose this increase for the council, and urge the Government to reconsider their decision to cease subsidising the Emergency Services Levy.”
Councillor Steve Christou said it was “disappointing” that after only five weeks after being elected, the State Government would slug ratepayers with another increase.
“If this goes ahead the council will be forced to find money elsewhere, and who will pay … it will be the ratepayer,” he said.
A State Government spokesperson said it was a decision by the former government and the Government did not have the time to engage with the process without jeopardising the funding arrangements for emergency services.
He said that local governments should have budgeted for the full emergency services levy, because the “the top-up was never guaranteed”.
“The NSW Government recognises that councils are facing increased cost pressures and is focussed on ensuring the sustainability of the local government sector,” he said.
“The NSW Labor Government has committed to implementing a review of financial modelling for councils, with a lens on the increasing cost burdens on residents, and we remain committed to that promise.”
