Services to be cut and projects delayed
Mayor Zoë Baker has labelled ‘incredibly disappointing’ the decision by rates regulator IPART to reject an 87% rate rise application for North Sydney Council.
Council had applied to IPART for a permanent rate rise and special rate variation (SRV) staggered over two years to ‘address essential financial structural repair and set council up for financial stability over 10 years,’ Mayor Baker said.
But IPART said council had ‘not clearly identify the need for, and purpose of, the proposed SRV in its reporting documents or community consultation materials.’
“While the documents describe the need to improve financial sustainability, it was not apparent that this meant the council would accumulate significant surpluses over the next 10 years,” IPART said. “The council was also not clear about how it would spend the funds in the proposed accumulated reserves.”
IPART did approve an increase of 4% for the next financial year, which is the maximum allowed for the 2025/2026 period.
North Shore MP Felicity Wilson said the decision was a ‘win for people power and a clear verdict on the overreach of North Sydney Council, who ignored the voices and the needs of our community, while arrogantly pursuing a shopping list of new pet projects at the expense of those who could least afford it.”
Mayor Baker said the decision meant council would have to make ‘really tough choices.’ “Service cuts, asset sales and other measures will have to be on the table – none of which support intergenerational equity.”
The council is dealing with a cost blow out for its $122 million Olympic pool redevelopment, and has already deferred capital works projects to pay for the project. Builder Icon, which was due to hand over the pool in July 2024, has now commenced legal proceedings against council.
Council said that liquidity pressures from the pool project had depleted internal reserves, which is why it had sought an SRV. “Restoring council’s liquidity must be the first priority.”
Projects for the 2025/2026 period now on hold include backlogged asset and infrastructure renewal (such as Primrose Park and North Sydney Oval) and playground and sporting field upgrades.
Council will adopt a revised budget after viewing the results from its May public consultation.
