Canada Bay: Council set to hike rates due to rising costs despite community opposition

An inner city council will raise rates for the first time in 22 years to cover the spiralling cost of services, with residents calling the increase ‘excessive’ and ‘unjustified’ given cost of living pressures.

City of Canada Bay counil is set to hike rates for the first time in its 22-year history. The area compromises of inner city foreshore suburbs such as Drummoyne, pictured here.

A Sydney council is set to hike rates for the first time in its 22-year history, as residents voice concerns about paying more during a cost of living crisis, with one calling it “very, very bad timing”.

The City of Canada Bay council voted on Tuesday to approve filing a Special Rate Variation (SRV) request to the Independent Pricing and Regulatory Tribunal (IPART) to raise ordinary rate income by a total cumulative increase of 19.78% over a four-year period.

Overall, the total cumulative increase would be 32.5 per cent over the period, which includes IPART’s rate peg rise, forecasted to be 12.7 per cent across the next four years.

At minimum, residents would pay an extra $117 annually from next year, and just under $350 more every year by 2026.

Council documents show, under the proposals, the minimum residential rate would increase by 15.5 per cent next year, and 8.4 per cent, 7.9 per cent and 7.6 per cent in each year thereafter.

The City of Canada Bay council voted to apply for rate increases at a council meeting on November 15.

Minimum residential rates would be $879 in 2023-24, and $953, $1030 and $1108 in the following three years.

The increase would raise $8.28 million in revenue, designed to maintain the council’s level of service.

In the council chamber on Tuesday night, however, residents from across the local government area (LGA) voiced their concerns.

“It’s fair to say the community is not in line with this plan,” Rhodes resident Christopher Cassley, who also called the SRV “steep, massive and excessive”, said.

“The reality in Rhodes is residents will be far worse off than our neighbouring suburb Wentworth Point, and changing the minimum rate is a blunt instrument.”

Ann Parsons, of Drummoyne, said the timing of the hike was wrong given the increased cost of living pressures faced by residents.

The LGA is home to a plethora of Sydney’s foreshore. Picture: Flavio Brancaleone

“It’s very, very, very bad timing,” she said.

“It’s bad timing for the whole of the area given the issues with the economy and people having to pay a lot more as living costs go up.”

Richard Cohen, a member of the Breakfast Point community group, said the group was “vigorously opposed” to the SRV.

“It’s excessive and unjustified,” he said.

Council first unveiled the preliminary plans in August and voted to undertake community consultation to gauge residents’ response, and explain why a rise was needed to offset the rising costs of providing services.

Deputy mayor Stephanie Di Pasqua (centre) voted against the rise while councillor Michael Megna (right) voted for it.

The motion was voted through six to three, with councillor Joseph Cordaro explaining council’s services would be impacted if the funding wasn’t secured.

“This is not a money grab,” he said.

“I’d like to know what services those against the SRV would like to lose if it isn’t approved.”

Mr Cordaro said the move was about making decisions for the better of the community, even if they weren’t universally popular.

“This is about paying our way, making hard decisions that are politically risky or unpalatable,” he said.

Liberal councillor Michael Megna said councillors had all been on-board with the proposals when consulted earlier this year.

“Voting against this recommendation is financially irresponsible,” he said.

“Not one councillor objected to the proposals when it was first raised earlier this year, we all knew the figures and what was being proposed.”

Labor councillors Andrew Ferguson and Julia Little, the latter has been endorsed by local party members to run for the state seat of Drummoyne in next year’s election, and Liberal deputy mayor Stephanie Di Pasqua voted against the motion, echoing concerns by residents a hike was too steep.

“The people of Canada Bay are doing it tough, and the overwhelming response (to the SRV) was negative,” Mr Di Pasqua said.

“The rise was contemplated at a different time, when the cost of living wasn’t as crippling to the household budget.”

Council will now make a SRV application to IPART, with further community consultation expected in the new year.