Northern Beaches Council demerger: Residents would be whacked with a $68m bill if the split went ahead

Ratepayers would be whacked with a $68 million bill if a push to split up Northern Beaches Council into its three former bodies — Manly, Warringah and Pittwater councils — was successful.

A rally outside NSW Parliament House held by supporters of a move to split Pittwater from the Northern Beaches Council. But it would cost about $68 million to demerge the amalgamated council. Picture: Supplied

It would cost close to $70 million to “demerge” Northern Beaches Council and reinstate the former Manly, Warringah and Pittwater local government bodies.

That’s $653 per ratepayer.

These startling figures are revealed in a report to be presented to Tuesday night’s council in response to a push to allow locals to have their say about splitting up the eight-year-old amalgamated council.

Councillors will be advised by staff that the “estimated financial implications of a demerger would most likely result in the (three) new councils being financially unsustainable”.

Northern Beaches Council was created out of the compulsory amalgamation of the three former councils, ordered by the previous NSW Coalition government, in 2016.

But there has been a constant lobbying effort from supporters of the former Pittwater Council, and the Greens members of the current merged council, for it to be reversed.

A rally outside NSW Parliament House held by supporters of a move to split Pittwater from the Northern Beaches Council. Picture: Supplied

At its April meeting, the council voted to have council staff prepare a “preliminary desktop analysis” of the cost of demerging.

It came after Greens councillor Miranda Korzy argued that there was a community push for ratepayers to be allowed to have a say in the structure of local government on the northern beaches.

Cr Korzy said at the April council meeting that residents were never given the democratic right to vote on whether they wanted to be live in a “mega council” area.

“It’s basically giving them a vote on something they were never given a vote on before,” she said.

The report to the council stated that the “high level” estimate of the cost to demerge Northern Beaches Council and reconstitute Manly, Warringah and Pittwater councils, would result in a one-off cost of $43 million, or $412 per ratepayer.

A push is on to allow people to vote in a poll at the September council election about whether they want to demerge Northern Beaches Council. Picture: Trevor Veale

This would be followed by an additional cost of $25 million per annum ($241 per ratepayer) to operate three separate smaller councils.

Council officers also pointed out that the cost of holding a vote, at the September council election, on whether there should be a demerger, would cost $348,000.

There would also be a cost if the council’s financial report on a demerger was put out for public feedback.

Cr Korzy, a Pittwater ward councillor, said she could not “ignore the wishes of the thousands of Pittwater residents who have signed petitions calling for a council demerger”.

“The merger has not resolved any potential financial issues individual councils may have been facing.”

Independent councillor Vincent De Luca, who supported the demerger vote, pointed out that there had been rates rises each year since the amalgamated council was formed.

Greens councillor Kristyn Glanville said ratepayers “can tell us what they want and we can go from there.”

People at the first meeting of the new Northern Beaches Council at Manly Council Chambers

Independent Manly Ward councillor Candy Bingham said there was no mood in Manly for de-amalgamation.

She said the former Manly Council was $66 million in debt prior to the merger and the merged council had led to efficiency gains and improved customer satisfaction.

The councillors were advised by staff that the costs of a demerger would include setting up new payroll and rating structures; booking and customer service systems; workshops; stores; storage; uniforms; plant and equipment; staffing as well as new supply contracts.

Three new sets of councillors would have to receive allowances and the replacement of signs on buildings, parks and streets would be required.