North Sydney Council will apply to the state regulator IPART for a permanent 87.05% rate rise over two years.
Council voted last night for the special rate variation, which it says is needed to help foot the bill for the $120 million North Sydney Olympic Pool redevelopment and to quell $5.5 million operating deficits over 10 years, and a $146 million infrastructure backlog.
There will also be another loan for the pool, $10 million to finish the building by May, when the contractor is expected to hand over the site to council.
The councillors, who voted 7-3 for the rate rise, faced a heated and packed chamber, with calls of ‘sack them’ during the meeting. There were 44 registered to speak, mostly against the move, during the three-hour meeting. The two Liberal councillors, including Jess Keen who was involved in the council who originally voted for the pool project, and Independent James Spenceley voted against the rise.
If IPART agrees, rates will initially go up by 45% in July, 2025 (from the minimum $700 to $1,200), then another 29% in 2026 ($1,548 ). IPART will conduct a community consultation before making its decision, usually around May.
Speaking on ABC 702 radio this morning, Mayor Zoe 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 from 7 to 4. Mayor Baker said North Sydney had inherited the pool ‘disaster’ from the previous council, and was now dealing with the fall out.
North Shore Liberal MP Felicity Wilson will put a motion to NSW Parliament today for an inquiry into North Sydney Council, alleging on 702 this morning it was being ‘financially irresponsible.’ Ms Wilson, who attended the meeting with the Liberal candidates for Warringah and Mackellar, said council had included things in its budget which were ‘nice to have, not need to have,’ including $14 million for a library expansion.
Speaking on radio, Cr Spenceley said residents had told him the rise would affect the quality and quantity of food they would be able to eat.
Most Sydney councils have put their rates above a CPI increase in the last few years, with loss of revenue during COVID-19 and rising interest rates causing budget holes.
IPART is currently considering a 39% rise at Northern Beaches Council, with former Prime Minister and Forestville local Tony Abbott advising residents to boycott the rates rise and ‘dare council to sue’ in The Daily Telegraph yesterday.
