Hornsby Mayor Steve Russell says shire is being ‘held for ransom’ by Parramatta Council, following $22 million letter of demand

HORNSBY Mayor Steve Russell is convinced the Shire is being “held for ransom” by Parramatta Council following a $22 million letter of demand.

Hornsby Mayor Steve Russell has hit out over a letter of demand from Parramatta Council. Photo: Adam Ward

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HORNSBY Mayor Steve Russell is convinced the Hornsby Shire is being “held for ransom by Parramatta Council” and “screwed by the State Government”, following a $22 million letter of demand for funds collected on behalf of the City of Parramatta.

On August 1, Parramatta Council’s chief financial officer sent a notice of final demand to Hornsby Council, for an outstanding debt of $22,858,088.35 for rates, taxes and contributions involving the Carlingford and Epping region.

“City of Parramatta Council was vested with all assets, rights and liabilities associated with the area that was constituted part of the new area of City of Parramatta Council that previously formed part of the local government area of Hornsby Shire council,” the financial officer said.

“Including all rates, taxes, contributions and other monies associated with such transfer.

“The debt still remains unpaid ... despite previous requests having been made for payment.

The financial officer also provided a deadline of seven days, which expired on August 8, for the debt to be paid by Hornsby Council.

Epping Town Centre is at the centre of the debate.

“City of Parramatta Council will have no option but to refer this matter to our solicitors ... for the recovery of the debt via the institution of court proceedings,” the financial officer said.

“Please note that once court proceedings are taken, court fees, interest and legal costs will be added to the claim of the debt.”

Cr Russell has since hit out against Parramatta Council, claiming administrators “failed to sign an agreement on how the division of funds would occur”.

“Not only are we being screwed by the State Government following its backflip on forced amalgamation proceedings, Hornsby is now being held for ransom by Parramatta Council,” Cr Russell said.

“They were in principle agreement on a formula developed by council staff, however, they never signed off on it.

“We are not going to start giving them money until an agreement is signed.”

Parramatta Council administrator Amanda Chadwick. Pic: Supplied.

Cr Russell said Parramatta Council failed to explain how they came to a sum of more than $22 million.

“We don’t agree with the sum submitted to us, they didn’t even send supporting documents,” Cr Russell said.

“How negligent would I be if I paid them, we aren't not going to be screwed again — I am not signing a blank cheque for a bully.

“We need to ensure we retain the money we are entitled too.”

City of Parramatta Administrator, Amanda Chadwick said, “council relied on figures provided by Hornsby Council to calculate the debt owed”.

“It is comprised of commercial and residential rates income, Section 94 developer contributions, Grants and Domestic Waste Reserves,” Ms Chadwick said. “Deductions were made for a major loan payment and the reimbursement of Hornsby’s costs associated with the boundary transition.”

A Parramatta Council spokesman said the “City of Parramatta has been in discussions with Hornsby Shire Council for over 12 months seeking payment of rates and other revenues that Hornsby has continued to collect from Epping area residents since the merger took place in May 2016”.

“To date, Hornsby has refused to transfer the data needed to enable City of Parramatta to issue the rates notices to Epping ratepayers and consequently Hornsby has issued the rates notices and

holds all collected revenues,” the spokesman said.

The debt is for rates, taxes and contributions involving the Carlingford (pictured) and Epping regions. Pic: AAP Image/Carmela Roche

“Throughout this period, City of Parramatta has - and will continue - to deliver quality local government services to residents and ratepayers in the Epping area.

“However, Hornsby Council has repeatedly refused to honour the agreement to transfer rates collected for these services; hence Council’s recent letter of demand.

“City of Parramatta supports the 2016 Boundary change to unite the whole of Epping Town Centre under a single City of Parramatta.

“Through this period Council has initiated a range of service improvements, worked closely with the community and received positive feedback.”

Cr Russell said he also contacted Local Government Minister Gabrielle Upton on August 3 after receiving the letter of demand, however, said he has not received a response from the minister.

A spokesman for Ms Upton said, “the NSW Government will ensure Hornsby residents will not be worse off.”

“We are currently looking at a range of options to make sure that happens,” he said.