Regulator gives green light to special variation
Willoughby City Council will soon vote to raise rates by 15 per cent, following approval from the regulator for a special rate variation.
IPART, which sets the maximum yearly amount by which councils can raise rates – called a ‘rate peg’ – said Willoughby could go 10 per cent above the five per cent peg. Council’s community survey found most residents who replied via a consultant survey supported a rise of 12 per cent, with most online respondents preferring no rise above the peg.
Council has put out to consultation its operational and financial plan, where it proposes efficiencies designed to stave off insolvency, which was foreshadowed last year if no changes were made to the budget. It has set itself a $2 million efficiency target which would be met through areas including construction fee rises and ‘optimisation’ of its property portfolio. It has already put managers on notice that they must ‘justify’ their budgets, outsourced the loss-making Devonshire Street child care service and replaced its popular Vivid festival with Culture Bites.
It is still planning a robust capital works program, with the $38.8 million Willoughby Leisure Centre upgrade its biggest project, with asbestos and structural issues delaying the opening from mid-2024 to 2025.
Like many councils across Australia, Willoughby is still struggling to recover from a $20.6 million loss during the COVID-19 shutdown.
Rate rises are being used by many councils to plug the gap – but not all Willoughby councillors voted for the 15 per cent rise, with four opposing it when originally mooted and some preferring a 12 per cent rise, in line with the community feedback.
Independent councillor Roy McCullagh, who voted against a 15 per cent rise, said he wanted to give voice to the ‘reasonable number of people who didn’t support the rate rise’. “They need to have a voice in council.”
A spokesperson said council was ‘committed to delivering best value service delivery for ratepayers and is constantly examining ways of increasing revenue and reducing costs’.
Council is planning to use a $2 million buffer from the extra rate income to invest in ‘cleaning, care and beautification projects in parks, cycling and walking routes and town centres, and planting programs’.
A public consultation about the plans concludes 27 May, with council likely to vote on the one-off rate rise at its 24 June meeting.