Funding recommendation for fast-growing peri urban areas
Peri Urban Councils Victoria (PUCV) has welcomed a key recommendation from a parliamentary inquiry that the State Government establish funds to support rapidly growing peri urban communities.
The findings of the Legislative Council’s Economy and Infrastructure Committee’s inquiry into local government funding and services was tabled in Parliament yesterday.
Acting PUCV Chair, CEO Mark Dupe, welcomed the committee’s acknowledgement of the financial challenges in peri urban areas caused by rapid population growth.
“Our municipalities form the gateway to regional Victoria and are growing quickly because they are close to Melbourne, but offer a relaxed, affordable lifestyle,” Mr Dupe said.
“More people are working from home or seeking to find a more affordable community, many are choosing to make a new life in a peri urban area. The secret is out and demand for housing is growing,” Mr Dupe said.
PUCV members have forecast their communities will grow by as much as 50 per cent over the next 15 years, and will require an additional 70,000 houses for around 180,000 new residents.
They have also forecasted an immediate need for $230 million for essential infrastructure like drainage, utilities and roads to enable 40,000 new homes to be built.
The recommendation aligns with calls from Peri Urban Councils of Victoria to establish two key new funds:
A Future Fund: a loan capacity to allowing councils to borrow against existing developer contributions plans agreements to build catalyst infrastructure to support housing developments;
A Capital Grants Fund: for Peri Urban communities to facilitate the delivery of liveability infrastructure as peri urban communities grow.
Among the findings of the Local Government Funding and Services Inquiry was some councils, particularly those in peri urban areas, were required to manage fast growth without the levels of financial support previously provided to interface councils by the Victorian Government under the Growing Suburbs Fund.
“Peri urban councils struggle to meet the cost of getting land development ready for housing developments due to their smaller rate bases, limited borrowing capacity and greater responsibility for essential infrastructure,” Mr Dupe said.
“These are challenges metropolitan councils do not have and peri urban councils need additional government funding support,” Mr Dupe said.
“This recommendation aligns with a Peri Urban Councils Victoria call to better fund our growing communities and we ask the government to address this finding in the 2025 budget process,” Mr Dupe concluded.
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