Willoughby Council faces backlash over plans to increase rates by 15-20 per cent

A 20 per cent council rate hike could be on the cards for thousands of Willoughby residents – with domestic waste charges also set to soar due to more people ‘working from home’. Have your say.

Domestic waste charges are rising for thousands of residents as a council considers a rate hike of up to 20 per cent.

A rate hike could be on the cards for thousands of north shore residents amid concerns over the future economic position of Willoughby Council.

Rising inflation, employee costs and ageing infrastructure has prompted the council to consider a potential rate increase of 15-20 per cent in the 2024/25 financial year.

The 15-20 per cent figure was included in a draft long term financial plan which highlighted various economic challenges facing the council, including inflation on goods and services which makes up 44 per cent of the council’s expenditure.

The cost of repairing council infrastructure and assets is also expected to rise after soaring from $12.8m to $20.9m last year.

The proposal to increase rates comes after budget documents for the upcoming financial year reveal residents will pay an additional 3.7 per cent on their rates notices in 2023/24.

The residential rates would apply in suburbs including Chatswood.

Further adding to the financial strain of local households, the council is also planning a 10 per cent increase in the domestic waste management charges.

A report by the council states the increase was due to “increased waste management volumes” possibly from more people “working from home”.

The council’s fees and charges – including parking meters, sports hire ground use and outdoor dining – will meanwhile rise by seven per cent in line with CPI in 2023/24.

Thousands of ratepayers in the community are now being asked whether they would support paying more money on their rates from 2024/25 to help boost the council’s bottom line.

A council report warned its current income from rates would not be enough to meet its debts in future years.

“Put simply, our expenses are now more than our revenue, meaning we will not be financially sustainable without intervention,” the report states.

An aerial photo of homes on the north shore.

For the average ratepayer, the increase would mean forking out an extra $3.88 and $5.18 per week – or from $201.76 to $269.36 per year.

One person who will not be supporting the increase is Chatswood Chamber of Commerce president Warwick Andison who has raised concerns over the financial pressures facing many local households.

“The rates in Willoughby are already high enough,” he said. “If they go up 15 or 20 per cent, that’s a big jump in one hit especially when you add on interest rates and everything else that’s gone up.

The rate increase would be used to upgrade local infrastructure and services in the community.

“It would have an effect on people’s spending – clothes, dinner, going to the movies which would have a flow on effect for businesses. If they have to raise rates, they’d be better off doing it incrementally over three to five years.”

A report by the council shows the financial challenges facing the council also include ageing stormwater infrastructure which is “approaching a critical phase in their lifespan and will require a significant program of renewal, repair and upgrade”.

The council is also funding several large infrastructure projects including the redevelopment of Willoughby Leisure Centre.

Local councillor Anna Greco said the proposed 15-20 per cent figure was not set in stone and the council would need to take all community feedback on board before making a final decision.

“It’s completely up to the community because we want the process to be driven by the community,” she said. “Maybe the community will say no to the increase. We’d have to listen to that.”

Councillors are meanwhile being briefed on alternative options to address the financial state of the council, including reducing expenditure through “service level trade-offs” and increasing other streams of revenue.

If councillors vote to pursue a rate rise, an application would have to be made for determination by the Independent Pricing and Regulatory Tribunal.

The council is due to consider feedback about its long term financial plan at a meeting later this month.