Rate rise needed to cater for increasing density: Mayor
With an influx of over 5,000 homes due in North Sydney in the next three years, Mayor Zoë Baker says a rate rise is crucial – and residents want services and are prepared to pay for it.
The council has been conducting another special rate variation (SRV) consultation, with three options on the table – a ‘rate peg only’ increase of 10.33%, and two cumulative SVRs: 39.92% and 54.18%. A permanent rate rise is also proposed.
Mayor Baker has been attending precinct meetings and speaking with residents, who she says reflect what the externally-conducted Micromex consultation showed: “The vast majority of people want us to maintain or increase service levels and to address the infrastructure backlog and quality.
“And that majority are prepared to pay more. People understand (council’s) fragile situation.”
The precarious financial position has been caused by the $122 million North Sydney Olympic Pool redevelopment blowout, with numberous loans including $10 million just this year.
Contrary to the strong campaign against the proposed 87% rate rise back in February, which drew wide media attention and protests outside council, Mayor Baker says feedback has been different this time because residents have seen the effects of the cut in services. “People can see that there are 11 bus stops that are propped up or closed. We are making choices between collapsing seawalls and an emergency PA system for North Sydney Oval.
“This year has been one of reacting and reallocating and reprioritising funds to protect public health and safety.”
Of more concern, the mayor says that there are 27 state significant development applications which will bring in 5, 321 units in the next three years. “I think we’re likely to exceed (our 5,900 quota over five years), probably quite significantly.” The implications will be ‘acute,’ ‘as we have the lowest level of public open space in northern Sydney.’
“We need to increase it to serve the existing population, let alone this additional population. We need to have additional community facilities because people who live in high density rely on public infrastructure for quality of life and liveability.
“We need to plan for that infrastructure, and that requires (additional) funds.”
The consultation closes 3 December, with council to discuss the outcome in January. If council approves the rate rise proposal, it will go to the regulator IPART for approval in February.