Peri Urban Councils Victoria, of which Baw Baw Shire is one of five members, has congratulated the state government on its decision to review existing infrastructure contributions.
Speaking on behalf of the PUCV that represents local government areas abutting greater Melbourne, Baw Baw Shire chief executive officer Mark Dupe said there was an immediate need for $230 million for essential infrastructure such as drainage, utilities and roads to enable 40,000 homes to be built.
He said various infrastructure contribution schemes such as developer contribution plans and Section 173 agreements were creating large funding gaps that risk peri urban councils ongoing financial sustainability.
Those councils have smaller rate bases, limited borrowing capacity and more responsibility for essential infrastructure than metropolitan councils, Mr Dupe claimed.
He said over the next 15 years the five PUCV areas were expected to need an additional 70,000 houses that would become homes for 180,000 people.
"The councils are willing to play their part in addressing the state's housing crisis and are supportive of the housing targets set by the government.
"The current system is not fit for purpose".
Mr Dupe said planning processes were "simply not keeping pace" with the rapid changes in towns and cities and councils' aims to appropriately plan for housing, township character, open spaces, transport and more.
He congratulated the government for undertaking a review of existing contribution schemes.