Ku-ring-gai Council proposes 17% rate hike to fund long-planned theatre, sport projects

A cash-strapped council is considering slugging residents with a rate hike of up to 17 per cent in a move to bankroll major infrastructure projects, including a long-planned theatre upgrade.

Ku-ring-gai Council is considering slugging residents with a sharp rate hike.

A cash strapped council is considering slugging residents with a rate hike of up to 17 per cent in a move to bankroll major infrastructure projects, including a long-planned theatre upgrade.

A report by Ku-ring-gai Council has laid bare its capacity to fund new community infrastructure works as it grapples with projected income shortfalls from proposed asset sales and the rising cost of labour and building costs.

The proposed rate hike would cost the average ratepayer an extra $290 per year and would be used to fund long-planned projects including the $25.3m Marian Street Theatre redevelopment and the $23m St Ives Indoor Sports Centre.

The council – which is projected to net $75.5m income from rates next financial year – would earn an extra $13.2m per year if the rate rise application was successful.

On top of the rate hike, the council is also planning a seven per cent increase in domestic waste management fees in the next financial year – earning the council an extra $1.5m per year.

A concept image of the Marian Street Theatre upgrade.

There’s also bad news for golfers with the council planning to increase golfing fees at council owned facilities by up to 25 per cent as part of changes to the council’s fees and charges policy.

The proposed rate hike comes after the council previously planned to sell-off more than $100m of “under-utilised property” including the former East Roseville and Gordon Bowling clubs – which were proposed to be rezoned into housing – to partly pay for new infrastructure including the theatre upgrade.

Domestic waste fees are also expected to rise by seven per cent.

Some of the assets earmarked for sale, however, earned “significantly” less than forecast including the bowling clubs. This was partly due to the council not achieving the desired rezoning and planning outcomes.

The report found the primary way to fund the theatre upgrade would be to apply to the Independent Pricing and Regulatory Tribunal (IPART) for a rate rise increase from the 2025/26 financial year.

Funds from the rate rise would also be used to help repay a $13.5m loan required to build the St Ives Indoor Sports Centre.

The application would have to be endorsed by the council before an application to IPART would be made for a final determination.

Golf fees at council facilities are proposed to increase in the next financial year.

John Townend – who has been campaigning for the progression of Marian Street Theatre redevelopment for almost a decade – said there was growing frustration about the uncertainty surrounding the project’s future.

“The longer it takes to build the more expensive it gets – in 2018 the budget was $10.5m and now we’re talking about $23m,” he said.

“For the last three years the council’s plan has been to sell off assets which they didn’t get but there could be other ways of funding it on top of a rate rise, such as development contributions or even community fundraising and philanthropy. 

John Townend (right) has been lobbying for the theatre upgrade.

“This is a wealthy area and I think the community would get behind this if properly approached.

“In the current economic climate, I think people are going to expect a lot for a rate rise and there may be some kickback because it would be a big hit.

“The whole of the country is facing similar issues – if we want the facilities that the community wants we need to have money for it. You can’t keep spending and not have an income source.”

While Ku-ring-gai Council is anticipating a $16.1m operating surplus in the coming financial year, the council’s report has warned of “various economic challenges” including its capacity to maintain existing infrastructure.

A concept plan of the Marian Street Theatre upgrade

“Many of council’s key assets such as buildings, footpaths and drains were built many decades ago and over the following generations have not been upgraded or replaced,” the report stated.

“In more recent times increased attention has been placed on improving existing assets and providing new facilities to cater for increasing population, changing requirements and expectations.

“While council’s financial indicators are satisfactory, infrastructure asset indicators fall short and the challenge for council is to be financially sustainable by funding the maintenance and renewal of more than $2bn in assets over the longer term.”

Modelling by state government run website ‘Your Council’ shows residents in the Ku-ring-gai Council region already pay an average of $1441 per year in ordinary rates.

The figure is above other northern Sydney councils including Lane Cove ($1303), Ryde ($1099) Willoughby ($1086) and North Sydney ($877).

But the report by the council suggested there was a capacity for residents to afford the rate increase due to its high socio-economic index.

Councillors will consider the report outlining the proposed rate increase at a meeting next week.