Councillors split over way forward
There will be a 4.9 per cent council rate rise in the next financial year, in line with what is permitted by the regulator IPART – but councillors have split on the issue, with Mayor Sue Heins using her casting vote to pass the budget at the 25 June meeting.
The budget had to be passed by the end of June, with a stern warning from chief executive officer Scott Phillips that if the budget was not passed, Local Government Minister Ron Hoenig could put council into administration as a last resort.
Council is facing a $5.1 million deficit in the coming financial year, with staff recommending an ‘alternative scenario’ 10.6 per cent special rate variation (SRV) for 2025/6, saying: ‘Income levels are no longer sufficient, a scenario which is not sustainable and without intervention will continue to reduce services to the community’.
Councillor David Walton made an amendment to the recommendation, which was passed, which requires staff to prepare a ‘report and recommendations on options to improve the long term financial plan 2024-2034, to reduce the need for a SRV and rate increases above inflation’.
Only IPART can approve a SRV, which council would only apply for after community consultation. It is increasingly being used by councils as a way to counter increasing inflation, decreased revenue following COVID-19 and spiralling construction costs.
There are two major expenses which are putting a dent in council’s budget – construction of the Warriewood Community Centre ($10.4 million loan), and replacement of council’s core operating systems ($12.1 million).
Some councillors, including deputy mayor Georgia Ryburn, said council had a ‘spending’ problem: “We need to get back to basics and start filling potholes.”
Cr Vincent De Luca agreed, saying staff salaries needed to be reviewed, and council had to carefully examine high spending areas like marketing and events.
The budget vote came after a community consultation, which received 137 responses, with 31 against the rate rise.
Cr Walton was against a rate rise, but voted in favour of the budget ‘to make council financially sustainable’. He said that given the majority of respondents were against rate rises, ‘their concerns have been ignored’. “We are looking yet again at residents to bail us out.”
Voting in favour of the budget, Cr Sarah Grattan said the budget was ‘responsible and balanced’. “If you vote against this budget, you vote for a reduction in services,” she said.