Hello,

Previously, we discussed how Wollongong could lose $16 million in funding. Today, we’re diving into the details of Council’s upcoming extraordinary meeting in response to the proposed changes.

Today’s newsletter is 771 words, a 4 minute read.

Most council business happens at the regular monthly meeting.

An extraordinary meeting is called outside that schedule and can only deal with the items listed in its notice. Under the Code of Meeting Practice, the Lord Mayor can call one, and must call one within 14 days if two councillors ask in writing.

This one was requested by Lord Mayor Tania Brown (Labor) at council's 21 September meeting. It has a single item on the agenda: submitting a response to state government about the proposed funding cuts.

THE HEADLINE: A proposed new formula would cut Wollongong's annual Financial Assistance Grant from around $23.8 million to $7.7 million.

That's a 67.5% drop, according to indicative modelling the NSW Local Government Grants Commission sent to councils in September.

Financial Assistance Grants are Commonwealth money that councils can spend however they choose. They aren't tied to a single project. Instead, they help fund the everyday running of the city.

The stakes: Council's business paper says a cut this size couldn't be absorbed through efficiencies alone. It would likely mean some combination of service reductions, deferred infrastructure renewal, workforce changes, and higher rates, fees or charges.

Worth knowing:

Will this impact you? Not straight away. But if the cut goes ahead at this scale, council says the impact would be spread across all areas of local government.

The submission lists the areas most at risk, including maintenance of roads, stormwater, buildings, public spaces and waste facilities, along with community, cultural and recreation services. It also flags less flexibility to fund growth in West Dapto, and possible increases in rates, fees and charges.

Council's submission argues the model misses what it costs to run a regional capital. Around 220,000 people live in Wollongong, but council estimates about 287,000 are in the city on an average day once commuters, students and visitors are counted.

It also says the formula leans too heavily on average household income to estimate how much council can raise in rates. That average hides big differences across the LGA. Stanwell Park and surrounds scored 1,111 on the 2021 socioeconomic index. Meanwhile, Warrawong scored 765, placing it among the most disadvantaged communities in the state.

Council isn't opposing reform outright. It's asking the Commission to release its full calculations, test the model properly, and phase in any major changes rather than starting from 1 July 2027.

What's ahead: On Thursday, council will be asked to endorse the submission, authorise the General Manager to lodge it by the 9 October deadline, and have the Lord Mayor and General Manager keep advocating on the issue. Council has already written to the Premier, the Minister for Local Government and local state MPs.

You can read the full business papers and draft submission here.

Last week I talked about some common questions that have come up since starting The Civic Report. The feedback and responses I received from lots of you were really wonderful. It was a great reminder about the great community that has grown up around this newsletter. Thank you!

I also asked you how you think The Civic Report should be funded in the future. The responses (see above) provided a clear direction: Most of you are either happy with a mix of paid sponsors and voluntary support, or aren’t really bothered by how it happens, so long as it keeps getting published. This is really helpful, and over the next few weeks I will begin exploring how best to implement this.

Sneaky plug: if you have a business (or know someone who does) that wants to reach the best human beings in Wollongong, click here to get in touch!

Talk soon,

Liam