Northern Beaches Council set to vote on ‘crazy’ bid to increase rates by 40 per cent
Spiralling costs and stubborn inflation are behind a ‘crazy’ bid by a Sydney council to seek permission to hike rates by 40 per cent — and locals aren’t happy.
Manly
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A bid by Northern Beaches Council to seek “crazy rate hikes” of about 40 per cent has spurred calls for angry homeowners to join a protest rally to oppose the increase.
The financially struggling council will vote on Tuesday night whether to apply for permission to whack up rates by 39.6 per cent — over three years — to plug a $24m hole in its budget.
If the vote is successful, and the Independent Pricing and Regulatory Tribunal (IPART) accept the council’s application for the “special rate variation”, rates will rise, on average, about $340 a year.
The council says it needs the rates hike to “remain financially sustainable”, warning it would otherwise have to cut services and maintenance of ageing infrastructure.
It blames spiralling construction, labour and contracts costs, as well as inflation, for its budget woes.
Council staff have recommended that the council ask IPART to be allowed to levy a rate that could see homeowners paying an extra $1022 over the next three years.
“Rates income is now $24m lower each year than it would have been if it had been keeping up with inflation,” it said in a statement.
Mayor Sue Heins added that the high inflation, storms and floods, Covid, and shifts in costs to the council from other areas of government put pressure on the council’s ability to maintain services.
“For the last few years, we’ve had a finely balanced budget. But the gap between the high cost of building and delivering services is outstripping income from rates,” Ms Heins said.
“We’ve found millions in savings year on year. And we will continue to look to save costs wherever we can. But it’s not enough.”
Now, a community lobby group, Northern Beaches Peoples Voice, has called on homeowners to show their opposition by rallying outside the Dee Why council chambers during Tuesday night’s the extraordinary council meeting.
The group’s founder, Stuart Gold, has created digital rally posters urging people to resist the “crazy rate hikes” and “say no to rates rise”.
“This is outrageous,” Mr Gold told his followers on Facebook.
“The majority of the northern beaches community said that council should live within its means like the rest of us and find savings by reducing waste and tightening the belt.”
Independent councillor Vincent De Luca, who is opposed to the massive rate hikes, said on Friday that the council should first examine cost savings before raising rates.
Cr De Luca pointed out that the council could save money by a 30 per cent cut in the 112 executive positions, which cost $25.2m in wages.
He said that in 2023 the Events Department had an $11m budget to fund 51 staff to run Open Air Cinemas, World Food Markets, Food Trucks and Boss Fit Classes.
“Sadly, this waste of ratepayers’ money continues,” he said.
“My questioning has revealed ratepayers’ money has been wasted on the Australia Day Cinema, $42,000, the markets will cost nearly $22,000, the food trucks $21,000 and advertising $27,000.
“Our community does not want Council and its staff running such events when they can be run by community service organisations and local businesses at no expense to ratepayers.
“(And) the Arts and Culture Budget of over $1.5 million also needs review, particularly considering some recipients of this money aren’t even local artists.”
Cr De Luca also suggested unused council-owned property could be repurposed, and public-private partnerships signed to redevelop little used council-owned buildings.
Check online what your new rates would be.
The extraordinary council meeting begins at 6pm.
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