Hornsby Shire Council has been ordered to return $36 million of unspent funds from the Stronger Communities Fund.

The Stronger Communities Fund, established in 2017, aimed to assist councils undergoing forced mergers. 

However, under the previous NSW government, 96 per cent of the grants were allocated to Coalition electorates, including Hornsby Shire Council, which was never merged.

The grant program was described by the Auditor General of NSW as “deficient” and “lacking integrity”. 

In 2018, the former government awarded Hornsby Shire Council a $40 million grant in Round 2 of the Stronger Communities Fund for the Westleigh Park project. This project intended to transform over 30 hectares into a recreational area featuring mountain biking and green spaces. 

Despite the significant allocation, only $4 million was ever utilised, resulting in considerable delays and limited progress.

The NSW Government denied Hornsby Council’s request for an extension to use the unspent funds. The council must now repay the remaining $36 million. 

This decision followed recommendations from an independent inter-agency panel that evaluated requests from councils for project variations funded by the Stronger Communities Fund. 

Out of 16 applications from 10 councils, 12 were approved, with Hornsby’s request among the three denied.

“The former Liberal-National government’s Stronger Communities Fund has been exposed as one of the most egregious examples of pork barrelling,” said Minister for Local Government, Ron Hoenig.

Hornsby Shire Council received $90 million from the fund, despite not being an amalgamated council. 

“At a time when we are facing a cost-of-living crisis, every dollar counts,” Hoenig said. 

“Hornsby Council has had years to utilise this funding and the original deadline written into the grant guidelines has long passed.”

In addition to Hornsby, Federation Council’s request to reallocate $83,889 from a $5.4 million grant and Edward River Council’s request to reallocate $10,000 were also denied. 

A separate request from Hornsby Council for an extension on a $50 million grant for the Hornsby Quarry project was approved due to significant construction progress.

Hornsby Shire Mayor Philip Ruddock - a Liberal member of the House of Representatives from 1973 to 2016 - said that without the money, the council would not be able to meet the expectation to increase sporting facilities by 40 per cent by 2026.

The Stronger Communities Fund faced scrutiny during a 2020 parliamentary inquiry, where it was revealed that the vast majority of grants were allocated to councils in Coalition-held electorates. 

Former Premier Gladys Berejiklian admitted to pork-barrelling but maintained that the practice was not illegal.