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‘Appalling’: Councillor slams Northern Beaches Council proposal to hike rates by 40 per cent

A Sydney councillor says the bureaucrats should slash their $159m wage bill before slugging residents with an average rates increase of $673 per year.

Vincent De Luca, an independent member of Northern Beaches Council. Picture: Supplied
Vincent De Luca, an independent member of Northern Beaches Council. Picture: Supplied

A councillor on the Northern Beaches has broken ranks to slam “appalling” bureaucratic waste as his council prepares to vote on whether to slug residents with a 40 per cent rate increase over three years.

With angry locals expected to attend Tuesday night’s extraordinary council meeting, Vincent De Luca has vowed to oppose the hefty rate increase, which will see the average resident pay an additional $673 a year.

“There are 111 managers, directors and executives working for council which costs us $25 million alone … not including another $3.3 million for vehicles allocated to staff. It is appalling. The proposed rate rise is unjustifiable.” Mr De Luca told The Daily Telegraph.

Northern Beaches Council has 1800 staff and a $159 million annual wage bill which accounts for 40 per cent of its total budget.

The CEO, Scott Phillips receives a salary of $544,000 — which is $100,000 more than NSW Premier Chris Minns earns. Another further $3 million is allocated to events and “marketing and communications”.

The council recently warned of a $90 million black hole from “increasing costs of materials and construction”, natural disaster repairs, hefty losses from the Covid-19 pandemic and changes to the NSW Emergency Services Levy.

A chart showing modelling from Northern Beaches Council advising a rate increase of 39.6% would see residential ratepayers pay $673 extra per year. Picture: Supplied
A chart showing modelling from Northern Beaches Council advising a rate increase of 39.6% would see residential ratepayers pay $673 extra per year. Picture: Supplied

A two-month public consultation period about the rate hike received 6300 community submissions, with the vast majority of respondents opposed to a 39.6 per cent rise.

But council staff have recommended the option in order to “maintain financial stability” and it will now be put to a vote on Tuesday night.

Mr De Luca, an independent councillor, accused his public service of “ignoring residents and submissions” with a “farcical consultation process” which had “wasted $200,000 in ratepayers’ money”.

The council estimates that under the scenario to increase rates by 39.6 per cent over three years, the average resident would pay an extra $673 per annum, while the cost to each business would be an additional yearly cost of $1611.

Northern Beaches Mayor Sue Heins said the looming decision was “difficult but critically important. … which will impact services and our community infrastructure, now and for future generations”.

Furious locals have taken to social media to reveal plans to protest at Tuesday’s extraordinary meeting.

Northern Beaches mayor Sue Heins. Picture: Jim O'Rourke
Northern Beaches mayor Sue Heins. Picture: Jim O'Rourke

One asked: “weren’t we told amalgamations would see our council more streamlined and more cost efficient?”.

Others queried why the increase would be necessary when the council reported a $14.9m operating surplus last year. and boasts an estimated $5bn property portfolio.

This masthead approached every Northern Beaches councillor to ask if they would be supporting the rate hike. Most declined to reply.

If the vote is successful, the council will make a request to the Independent Pricing and Regulatory Tribunal (IPART) for the rate increase to be approved.

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Original URL: https://www.dailytelegraph.com.au/news/nsw/state-election/appalling-councillor-slams-northern-beaches-council-proposal-to-hike-rates-by-40-per-cent/news-story/b772dbe554cbad1886bc5785757e242b