Northern Beaches Council unveils $439m budget with proposed 2.7% rate rise
Northern Beaches Council has unveiled its draft budget which includes $439 million of spending including nearly $100 million on major projects. However, if approved peninsula residents will be hit with a 2.7 per cent increase in rates.
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Northern Beaches Council has unveiled its draft budget which includes $439 million of spending including nearly $100 million on major projects.
However, if approved peninsula residents will be hit with a 2.7 per cent increase in rates.
Mayor Michael Regan described it as a “responsible” budget which would enable council to continue to provide improvements while maintaining assets and making ongoing investments in major projects.
But Cr Rory Amon called for no rise in rates and said that council needed to do more to cut costs to facilitate a freeze.
On Tuesday night council voted to put the draft budget for 2019/20 out for consultation ahead of a final decision before the start of the next financial year.
The bulk of the council’s proposed $439m expenditure will go towards the running cost of the organisation ($339m), of which staff costs are the biggest contributor ($134m).
The remaining $99.5m will go towards major projects and infrastructure, known as capital projects.
Among projects set for funding include the resheeting of 25km of the peninsula’s roads ($6.8m), 8.4km on new footpaths ($3m), renewing 7.2km of existing footpaths ($1.24m) and continuing the next section of the Coast Walk project from Newport to Avalon ($2.2m) with public art along the route ($780,000).
The peninsula’s many wharves will also get some attention with Carol’s Wharf ($1.26m) and Bells Wharf ($775,000) benefiting and there will also be cash for infrastructure at Church Point ($1.04m).
Sports and leisure facilities are set to benefit with $500,000 for tidal pool refurbishments,
$590,000 for renewal of existing playground, $870,000 for improvements to sports buildings, $2.4m for sports fields and reserves, $200,000 to Lionel Watts Skate Park and $1.71m for new playgrounds and upgrades.
There will also be plenty of cash for our surf clubs with council honouring its commitment to the upgrades of the Mona Vale ($5.8m) and Long Reef ($1m) clubs. Another $1m will be made available for ongoing improvements across the peninsula’s clubs.
There’s also good news for Narrabeen Lagoon with $1.2m to complete the boardwalk and $2.17m for a pedestrian and cycle bridge.
Cr Sarah Grattan praised the proposed budget and said residents would get an overall reduction in costs — despite the rate rise — given $5m of savings made from the council’s new waste contract.
“Incredibly, despite increase costs … we will have one of the cheapest domestic waste services in Sydney,” she said.
She added that those pushing for a no rate rise had not taken into account unavoidable increased costs such as staff wage rises and other financial commitments such as long term contracts as well as depreciation.
She said a no rates rise budget would result in cuts to capital projects and would also potential burden future generations with debt.
“I conclude by asking councillors proposing to support the alternate case to identify how they intend to make council smaller and what projects, services or programs they specifically want to cut.
“I think we have a perfectly good budget and I commend the staff.”
The 2.7 per cent rise is the maximum amount the council can increase rates and is set by the independent pricing and regulatory tribunal (IPART).
The independent body sets the figure to take into account increased costs to the council. However, council has the discretion not to implement a rise.
Cr Rory Amon said the budget was in contrast to what he called the “scare campaign” during the proposal to merge the three peninsula councils.
He said the community had been warned rates would go up by 10 per cent without amalgamation.
“Now since amalgamation, rates will have increased … 13.5 per cent which is 3.5 per cent more than what was promised or threatened if we did not amalgamate.
“So the question is what are we doing and what do we need to be doing better?
“The scary thing about this budget is that despite $29m in efficiency savings we are only $2m in the black. So imagine if we didn’t have those efficiency savings we would be $27m in the red.”
He said council officers had gone about drawing up the budget in the wrong way by stating major projects would have to be cut to facilitate a rate freeze.
“Whilst we can cut capital projects until the cows come home the savings are to be found, as they have been found to date, in cutting operational expenses.”
These are the day to day runnings costs of the council, the bulk of which are made up of staff costs.
“In any organisation when you are looking to cut fat you don’t say to staff give us a list of capital projects, you say give us your top 10 things you will do to reduce fat or reduce costs in the organisation.”
Councillors Rory Amon, David Walton, Stuart Sprott, Kylie Ferguson and Pat Daley voted to put a budget out for consultation with no rate rise.
Councillors Micheal Regan, Candy Bingham, Cr Sarah Grattan, Cr Penny Philpott, Cr Ian White, Cr Natalie Warren and Cr Roslyn Harrison, Cr Sue Heins and Cr Alex McTaggart voted for a budget with the 2.7 per cent rise.
Cr Vincent De Luca was absent.
The budget will be on public consultation from April 26 to May 26.
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