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7businessdevelopmentinmoderncentresalongmajortransportcorridorsandneartransportnodes.ThiswouldpreservemostofSydneyforlowrisetownhousesterracesanddetachedhomes.Anonlineandphysical3-DmodelofhowSydneywillaccommodateitsprojected7millionresidentsby2050whileenhancingitsliveabilityshouldbethecentrepieceofthenewmetropolitanplan.Publicsuspicionofandhos.litytothecityx19sdevelopmentwillpersistaslongasSydneysidersdonx19thaveaclearvisionofhowtheirsuburbswilllook33yearsfromnow.WHATCITIZENSWANTFROMLOCALGOVERNMENTAseriesofsurveysofcommuni.esinNSWhavefoundthatmostarereasonablyposi.veabouttheroleofcouncilswithtwoimportantexcep.ons.Themajorconcernspar.cularlyinurbanareasareaboutthedysfunc.onalplanningapprovalprocessandthepoorcondi.onoflocalinfrastructureincludingroads.Inthedetermina.onofdevelopmentapplica.onsonly8ofresidentswantedelectedcouncillorsundertakingthisrole.AmorerecentAuspollfoundthatcommuni.espreferredindependentassessmentofplanningapplica.ons.THESTATEOFLOCALGOVERNMENTCouncilsoriginallyfocusedonthe3Rsofroadsrubbishandrates.AnewLocalGovernmentActin1993hadtheex1aectoflix1eingtheroleto8Rsincludingroadsrubbishregula.onrecrea.onreliefregionalismretailandrates.Australianlocalgovernmentsexpendonly2ofGDPcomparedto8intheUSA12intheUKandEuropeand15inJapan.Byinterna.onalstandardslocalgovernmentinAustraliahasanarrowerfocusandislesswell-resourcedthanthatinotherdevelopedcountries.YetbyaveragenumberofresidentsservedAustralianlocalcouncilsareamongstthebiggestintheworld.TheclaimthatAustraliahastoomanylocalcouncilsisnottruebycomparisonwithotherwesterncountries.Australiahas564localgovernmentauthori.eswhereasEuropehas88000andtheUSA18443.TheNSWLocalGovernmentInquiryof2006foundthattherewasnoevidenceineitherAustraliaoroverseasthatthesizeofalocalcouncilboreanyrela.onshiptoitsunitcostswhichiswhythereportdidnotrecommendcouncilamalgama.ons.Therearestrongargumentsformorex1dexibleandspeediercontractcouncilsemployingasmallfull-.mepolicyadvisoryplacemanagementandprocurementsecretariattooversightservicesdeliveredbyspecialistexternalproviderssharedservicecentrestemporarystax1aandpart-.mecontractors.In2009asurveyofcouncilx1bnancialsustainabilityinNSWfoundthat37ofthe100largestcouncilswereunsustainableandthatafurther16werevulnerable.Thesurveyalsofoundthatexcludinglocalwaterandsewerageworkstherewasamajorinfrastructurerenewalbacklogof4.5billiongrowingbyabout150millionayear.Thekeyreasonforthisaccumulatedshor-allininfrastructurerenewalswasexcessiverealgrowthofopera.ngcostswhichdisplacedspendingoncapitalworks.Overa30yearperiodfrom1977NSWlocalgovernmentopera.ngexpenditureincreasedelevenfoldwhilecapitalexpenditureonlydoubled.Notwithstandingratepegginglocalgovernmentopera.ngexpenditureinNSWgrewsignix1bcantlyfasterthaninotherstatesduringthisperiodwhilecapitalspendingexpandedmoreslowlythanelsewhere.Correc.ngtheimbalanceinresourcealloca.onbetweenopera.ngandcapitalspendingisthemostimportantac.onneededforrestoringlocalgovernmentx1bnancialsustainabilityinthisstate.REFORMINGLOCALGOVERNMENTLocalgovernmentneedstox1bndasolu.onthataddressesboththepopulardemandforsmalldiscretemunicipali.esthatareclosetoresidentsandtheadministra.veadvantagethatcomesfromsizetoachievecostex1cciencies.TheidealrolemodelisLakewoodCountyinCaliforniawhichinthe1950sadoptedacontractmodelfordeliveringitsservicesthatprovedsosuccessfulthatitwasreplicatedbymanyotherlocalgovernmentauthori.esinCaliforniaandrestoftheUnitedStates.Theinforma.onrevolu.onunliketheindustrialrevolu.onrequiresspeednotsize.Amalgama.ngcouncilsintoamonolithicbehemothwonx19tencouragex1dexibilityandagility.NorwillitsolvethetwokeyproblemsoflocalgovernmentnamelyProlongedunderfundingofessen.alinfrastructureassetsandDysfunc.onalplanninganddevelopmentapprovalsprocesses.TomovetowardscontractcouncilsinSydneythex1brststepwouldbetomerge90ormoreoftheadministra.vefunc.onsofanumberofcouncilsinapilotregionintoasharedservicescentreSSCthatwouldberunasacommercialcoopera.vebyitsmembercouncils.TheHunterRegionalOrganisa.onofCouncilsintheHunterValleymanyyearsagoestablishedasharedservicescentreforprovidingsomeservicestoitsmembersonajointbasis.NeverthelesstheROCmovementthoughalmostfortyyearsoldhasnotachieveditspoten.albecauseindividualcouncilsarereluctanttooutsourcetheirservicedeliverytoajointlyownedthirdparty.ToachieveagenuineSSCdemonstra.onmodelwillrequirestrongStateincen.ves.Eachcouncilwouldretainageneralmanagerwithasmallsupportstax1ato