Mayor John Dal Broi said that he is not opposed to the new bill, provided money eventually comes back to the councils

The bill will redirect money from developer contributions away from local councils into the state government. The bill is aimed at simplifying and equalising the process.

As it currently stands, developers make contributions to local councils when beginning new projects. The funds are specifically set to be used on local infrastructure like parks, drains and roads, providing vital finances to city developments.

Mayor Dal Broi said "As long as the funds come back to the individual council, I don't have a problem with it."

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Currently however, the bill includes no guarantees that contributions would have to be spent where they are collected.

The bill was recently rejected by an Upper House parliamentary inquiry, which recommended the government consult with local councils about the potential impacts.

President of Local Government NSW Councillor Linda Scott, said that the issue with the bill was transparency.

"We need the Government to commit in the legislation that infrastructure contributions will be allocated fairly, transparently and locally ... We need written, legislative guarantees that no council or community will be worse off as a result," she said.

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Mayor Dal Broi said that the bill could prevent local governments from misusing or hoarding developer contributions, but was adamant that money should be returned to the areas that earned it.

"Some of the councils that are larger that receive contributions tend to hang onto it ... There are local government councils that perhaps don't do the right thing. If this is a way of making sure that your contributions will be documented and if the government hands them back for identified projects, I don't have a problem," he explained.

"I think you've got to think outside the square. I know in local government circles, everyone is up in arms about it. There's no way I'd support any legislation that collects funds that are attributed to an individual LGA and then don't return those."

He suggested that the responsibility would fall on council to keep track of how much money their contributions amount to, and then request those funds if and when they're needed.

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