Local Government Minister says ‘no’
North Shore MP Felicity Wilson has called on the State Government to conduct a public inquiry into North Sydney Council, under siege over its proposed 87.05% rate rise. Council has applied to the regular IPART for a permanent 87.05% rate rise over two years, in a move to help foot the bill for its $122 million Olympic Pool project and a $146 million infrastructure backlog.
Council has come under fire from several quarters, with dozens of locals speaking at the 10 February meeting against the special rate variation, (SRV) where councillors voted 7-3 for the rise. Ms Wilson was at the meeting, and met Local Government Minister Ron Hoenig on 13 February to convey her concerns. She told NL: “Residents and businesses are up in arms about this rate hike and want to see the State Government undertake a public inquiry into council’s financial mismanagement and maladministration.
“The minister has not been open to taking this action, but he has the power under legislation to do so – and also has the power to reject council’s rate increase application.”
If the SRV is approved by IPART, it will mean rates will go up initially by 45% in July (from the minimum $700 to $1,200), then another 29% in 2026 ($1,548). IPART will conduct a community consultation before announcing its decision in May. There were over 1,000 submissions to council’s own consultation, with the majority (56%) opting for a cumulative 65% rise, and only 5% opting for the proposal passed by council.
Speaking the morning after the meeting to ABC Sydney, Mayor Zoë Baker said council had made the tough but responsible decision to rise rates to ensure the future viability of council for generations to come. There had already been a thorough review and restructure of council two years ago, Mayor Baker said, including reducing the amount of managers. Mayor Baker said North Sydney had inherited the pool ‘disaster’ from the previous council, and was now dealing with the fall out.
Council also agreed to obtain another loan, of $10 million for the pool to dampen the rate rise increase in the next financial year.
Ms Wilson encouraged residents to have their say on the IPART consultation. “People feel blindsided by this rash and extreme proposal during a cost of living crisis and are fearful they’ll need to cut costs and even potentially move out of the area. This includes the more than 50% of North Sydney residents who are renters and expect landlords to pass on costs when rents are already at record highs.”