Council puts four rate options out for consultation
Residents could face a cumulative 46 per cent rate rise over three years under proposals to ensure the financial viability of Northern Beaches Council.
Four rate rise options have been presented to the community for the 2025/6 financial year, three of which involve a special rate variation (SRV) which must be authorised by regulator IPART.
Staff have recommended the SRV options to help council offset high inflation and decreasing income, with rate pegging lower than inflation for many years. Council is facing a $5 million deficit for 2024/5, with $255 needed in the next 10 years for asset renewal.
“Income levels are no longer sufficient to fund operating expenses, invest in the ongoing renewal of infrastructure assets required and provide the necessary working capital to manage unexpected events, a scenario which is not sustainable and without intervention will continue to reduce services to the community,” staff told council on 11 November.
Councillors were divided on the rate increase, with Vincent De Luca advocating council first explore cutting projects, examining organisational structure and focussing on core business activities. However, council voted by nine to six for the rate options to go out to community consultation.
Mayor Sue Heins told PL that while councillors were ‘very aware that everyone’s feeling the pinch… our long term financial sustainability is really important for us to continue.’
“We’ve been absorbing costs for so long now that it’s really starting to hurt.”
Mayor Heins said that council had already looked at internal cost savings through workplace reform, service reviews and property rationalisation. “But there’s only so much you can squeeze. The reality of it is that there is a real difference between money coming in and money going out.”
Under the proposed three special rate variations, rates would increase cumulatively over three years. The base option would see a 9.8% rise in the first year, with services ‘maintained’. The ‘golden standard’ would be a 13.8% rise (46% cumulative over three years), which would mean increased services, faster infrastructure delivery and an expanded grants program.
Mayor Heins encouraged all residents to have their say so councillors could inform their vote on which option to choose after the consultation ends on 12 January. “I do not want to see us reduce community-facing services (like) childcare, libraries, swimming pools.
“Crunch time has come. I think if we’re not open and transparent with the community about what the financial long-term sustainability is, then we’re not doing our job.”
For full details of consultations, see council’s website. IPART’s decision would be due in May/June 2025.