North Sydney Councillors May Cut Services Following Failed Rate Raise
Image: Image: Transport for NSW/Facebook.
North Sydney Council is considering ticketed entry for New Year’s Eve celebrations and increased fees for the use of harbourside parks as it tries to raise revenue.
The move comes as the pricing regulator rejected a proposed 87 per cent rate rise, resulting in a massive blow to the council’s budget.
The council warned it was facing “critical decisions” in October, as the cost of the North Sydney Olympic Pool rebuild increased to $122 million. The cost of the project has nearly doubled from an initial estimate of $58 million.
Councillors are re-examining its services and assets, with Mayor Zoe Baker saying measures to repair its finances would not be a “slash and burn” exercise.
“The staff recommendation is that we have a good look at service levels and seriously consider council asset sales, with the purpose to address the level of debt we have as a result of the pool.
“We will have to struggle with those decisions in coming months.”
The council applied to the NSW Independent Pricing and Regulatory Tribunal for a special rates variation to increase property owners’ rates by 87.05 per cent, as well as increasing its minimum residential rate from $715 to $1548, over two years, only to be rejected on the grounds that their case wasn’t compelling enough.
As such, local government cannot raise rates above the 4 per cent rate peg increase in 2025/26.
Councillor: “this is ad hoc decision-making at its worst”
The council will need to slash or defer $12.5 million worth of infrastructure renewals in the next financial year, sell off council buildings or land and reduce or cut service levels for thousands of ratepayers.
The services on the chopping block include community transport, verge mowing, street sweeping, graffiti removal and maintenance of parks and gardens, and customer service levels.
“Compliance activity” for making offences may also be increased, as well as the introduction of ticketed entry to New Year’s Eve events, and new or increased fees and charges for using parks and other open spaces for events.
Baker said the request to increase rates was an attempt to improve the council’s financial position “without cutting council services, or flogging off council buildings and land as short-term sugar hit to address the liquidity crisis we must face over the next 12 months because of the pool”.
Councillor James Spenceley said the elected officials had “absolutely failed the community”.
“What a mess. We shot for the stars – 87 per cent. And here we are, making service cuts, talking about asset sales, using debt, all the things we should have done to reduce the impact of that proposed rate rise. This is ad hoc decision-making at its worst.”
Councillor Nicole Antonini said councillors were being forced to fix the mess left by previous councils.
“It’s not just the mess of cleaning up a vanity project of an over-the-top pool that has put our council in debt, but years of ignoring our community assets, allowing them to fall into disrepair.”
“Our only library that floods regularly, a sports centre that’s had its roof blow off, an archaic computer system. We now even have engineers checking on our bus shelters, assessing their safety and whether they need to be closed and removed, with no funds to rebuild.”
