Canada Bay Council: Rates hike of 32.5 per cent over four years, first time in council’s history

A Sydney council has made the shock move to ask for a massive rate rise — which could see ratepayers fork out an eye-watering 32.5 per cent extra in council fees over four years.

A Sydney council could hike rates – totalling a 32.5 per cent rise over four years – for the first time in its 22-year history, but some councillors voiced concerns about the increase amid the cost of living crisis.

The City of Canada Bay council voted on Tuesday night to support a motion which includes a potential application for a special rate variation that would total a rise of 32.52 per cent across a four-year period, starting from the next financial year.

It projects the hike would raise an additional revenue of $8.28 million during that time period, and is the first time council has asked for a rate variation since it was established in 2000.

In a report submitted by council, officers argued an additional cumulative rate increase of 19.78 per cent over and above the IPART rate peg of 11.19 per cent was required to continue providing services for the community.

Aerial shot of Drummoyne, in the City of Canada Bay.

Council cited the ability to fund service improvements, maintain current service levels, improve financial stability and reduce reliance on external grants as the reasoning behind the rate hike.

“Historically, Canada Bay residents and businesses have paid lower rates on average than residents and businesses of our neighbouring councils – following this variation, that will still be the case,” general manager John Clark said.

For those on the minimum rate, there would be an increase of $3.98 per week in 2023-24, and in the following years by $0.77, $0.79 and $0.81 per week, which would result in a cumulative increase of $6.35 per week in total over the four years. The average annual minimum rate for a Canada Bay resident in 2026/27 would be $1108. For comparison, the same rate payer living in the Inner West local government area would pay $957, while in Burwood they would pay $1203.

HAVE YOUR SAY IN OUR POLL

The variation will be contingent on a month-long community engagement on the proposed hike, starting from September.

However, the bid to increase rates was not a unanimous decision.

Labor councillors Julia Little and Andrew Ferguson both voted against the increase when the motion was brought to a council meeting on August 16, citing the rising cost of living.

“I understand that we want to have a financially sustainable council, but a 32 per cent increase is significant given the cost of living pressures,” Cr Little said.

Councillor Andrew Ferguson (AAP Image/Monique Harmer)

Councillor Julia Little. Picture: Alexi Demetriadi

“Our community is very vocal in letting us know what they think is appropriate, so I‘m sure we’ll get that feedback.”

Cr Ferguson said he didn’t believe council had the mandate for such a steep hike.

“I know there’s good intentions, but I am concerned with the scale of the proposed increase,” he said.

“I think a 32 per cent increase over a four-year period is too much and I don’t think we have the mandate for it.

“Probably every one of us (the councillors) can afford an increase of this size, but there are many people in our community who can’t.”

The motion to raise rates was carried seven to two, with many of those who voted in favour citing the period of community engagement to ascertain residents’ views.

The general manager explained council across its existence had refrained from applying for a rate variation, but external factors meant it was now needed to ensure the best services for the community.

“Canada Bay is a rare case in NSW – having never applied for a special rate variation – and we are really proud to have provided excellent services and infrastructure for our growing community over the past two decades without the need for it,” Mr Clark said.

“However, significant past population growth and expanding future needs now require council to secure our future by applying for the variation.

“This variation allows for our council to meet the expectations of past growth, resource our community’s vision for the future and bring about a significant expansion in services.”

The community engagement on the rate hike will commence on September 5 and conclude on October 17.