Further council budget cuts may be considered
The North Sydney Olympic Pool initial budget of $30 million has now ballooned to a total of $105 million, with council seeking a $20 million loan to pay for the shortfall.
Council director of open spaces and infrastructure Gary Parsons presented a report to council on 12 February on the increased costs and further delays to the pool redevelopment, which may not see the project completed until 2025 – a delay of almost three years.
In a mayoral minute, Zoë Baker said the cost explosion and delays were caused by ‘misleading budgets’ and ‘inadequate project management resources,’ placing the blame on the previous council. “It is well past time that the former mayor (Jilly Gibson) and councillors who supported the poorly conceived, poorly planned and poorly budgeted project took responsibility.”
Issues now arise as to what capital projects must be further delayed by the unexpected blowout, with $12 million already deferred in the 2023/2024 budget – including road, footpath, playground and sports field renewals.
Mayor Baker told North Shore Living that although the council was ‘committed to maintaining service levels,’ more cuts may be on the cards.
“The 2024/2025 budget is currently being developed, and it is expected that further reductions in the capital budget will need to be considered,” she said. Ms Baker confirmed that the council had not yet considered raising rates.
“There is no doubt that an open and honest conversation with the community is required in relation to council’s financial position,” Mayor Baker said.
“Council is currently working through its long-term financial plan, taking into consideration the impacts of the project. No decision has been made in relation to specific financial repair strategies. Any decision will be informed by robust community consultation.”
At the meeting, Mayor Baker recommended that the council ‘prepare and adopt a rigorous, robust governance and decision-making framework to guide all decisions of council…to ensure transparency, accountability and long-term financial sustainability’.
The motion was passed, with former mayor Jilly Gibson and John Lepouris, also from Team Jilly, voting against.