Scruby calls hike ‘blow’ to residents
The average Beaches ratepayer will soon be paying $42 more per quarter, or $168 per year, after rates regulator IPART approved a permanent 25.2% rate hike to start in July.
IPART did not give council the full 39.6% it had requested, saying ‘inflation has put considerable pressure on the cost of living’ and the two-year increase would have a smaller impact on ratepayers. The four-person IPART panel also said council ‘has not demonstrated a financial need for the SRV,’ but a need for additional income for two years only.
“This is sufficient for council to achieve financial sustainability and still accrue surpluses to fund expansions in environmental and natural disaster risk reduction programs and long-term investments in major infrastructure renewals.”
The increase will be staggered, at 12.1% in 2025/2026 and 11.7% in 2026/2027.
Mayor Sue Heins said the process had been a ‘tough conversation’ with ratepayers and welcomed the outcome. “The approval gives us the opportunity to achieve what we set out to do – maintain core infrastructure and secure financial stability.
“Council now has the ability to confidently move forward and continue to repair and renew roads, footpaths, rock pools, stormwater infrastructure and other community facilities.”
The removal of the proposed third year of rate increase would likely mean some larger renewal projects like the Warringah Aquatic Centre or Manly Lifesaving Club redevelopments would not proceed ‘without significant external funding,’ council added.
Independent Pittwater MP Jacqui Scruby said the rate rise was still a ‘blow’ to residents already struggling with the cost of living. “It’s five times the rate of inflation and will make a real dent in household and business budgets,” Ms Scruby said.
“While everyone will be relieved the proposed 39% rise was rejected, a 25% increase is no cause for celebration, and may result in increased rates to only maintain services rather than invest in upcoming community projects.”
The approval is subject to certain conditions, including that the extra income must be spent on the projects which council outlined to IPART, including (over 10 years) $25 million on stormwater drainage and $12.8 million on major infrastructure renewals program. The rates rise will mean $24 million in extra income for 2025/2026, and $26 million for 2026/2027.
Council will review its spending and budget for 2025/26 at the 17 June meeting.