Cumberland Council could de-amalgamate
Cumberland ratepayers may be asked to vote in a referendum asking if they want the financially-strained council to de-amalgamate.
Parramatta
Don't miss out on the headlines from Parramatta . Followed categories will be added to My News.
- Setback for street name change after man ‘almost lost his life’
- Nurses rally over light rail to carve through mental hospital
An uneven payment system among Cumberland ratepayers is under re-evaluation and could soon trigger a call for the amalgamated council to demerge in an effort to “bring back democracy’’.
The council has haemorrhaged $15 million since it formed in 2016 when Holroyd merged with parts of Auburn and the Parramatta local government areas but residents continued rates set under their former councils.
That has meant Holroyd ratepayers fork out $1.07 million annually — significantly more than residents living in the former Auburn and Parramatta council areas who pay $450,858 and $277,721 respectively.
The issue of “rates harmonisation” is due to be discussed at tomorrow night’s council meeting, when the council hopes to retain the existing rates until June 2020.
But from the 2020 financial year, the council wants to increase rates in Auburn and Parramatta and freeze any CPI increases on former Holroyd ratepayers.
The council will also write to Local Government Minister Shelley Hancock and the Independent Pricing and Regulatory Tribunal about the $15 million loss from business rates when Silverwater, Olympic Park (formerly under Auburn) shifted to Parramatta council under amalgamations.
“That has caused a great cost burden the Cumberland Council,’’ Cumberland Mayor Greg Cummings said.
Auburn rates would jump by $156, Parramatta by $85 but Holroyd’s would jump by $115.
“The biggest problem is Auburn had one of the lowest residential rates in the metropolitan area and that’s because they could subsidise those (business) rates from the Silverwater area and the Olympic Park and Wentworth Point areas,’’ Cr Cummings said.
But the move has also sparked concerns that the increase would disadvantage the council’s poorest residents, in Auburn.
Cr Cummings, who represents the Greystanes ward, said he was sick of former Holroyd ratepayers carrying the burden for the rest of the council.
Cr Cummings believes the difference in rates illustrates how the amalgamation was unsuccessful and Holroyd residents were penalised for forking our more rates for projects from they would not necessarily benefit.
He cited the Granville Multi-Purpose Community Centre as an example of that. The project has received $10 million from the State Government and $13 million from Cumberland Council. But former Holroyd residents forked out $5.1 million, compared with $3.8 million (Auburn) and $4.2 million from Parramatta despite Holroyd residents being the furthest from the facility.
“How many people from the Holroyd neck of the woods are going to be using the Granville Community Centre? It’s unfair for the former Holroyd ratepayers to carry the burden.’’
In Parliament recently, Prospect state Labor MP Hugh McDermott, who lives in the former Holroyd area, said Holroyd ratepayers would welcome the drop in rates but outlined the problems for other ratepayers.
“There are massive changes here to average rate payments for people living in the old Woodville ward and Auburn, which are demographically low income; a lot of migrant families and a lot of unemployed people.
“There are significant issues there so this is a concern.’’
He also warned some councillors wanted to de-amalgamate and were considering holding a referendum at the September 2020 local government elections about the issue.
“Among councillors of the Cumberland Council and in the area that used to be Holroyd, there still is a massive, ongoing movement to push the de-amalgamation of these councils,’’ he said.
“These rate changes will have a major impact throughout the Cumberland Council area.’’
A motion would have to be raised for the amalgamations to happen.
Cr Cummings said a demerger would be costly but worth it.
“In light of how much mergers cost, that is a reasonable price to back to bring back democracy,’’ he said.
IN OTHER NEWS
