Randwick Council supports making application to make its environmental levy permanent

A Sydney council has decided on whether to apply to make a rate hike for environmental projects permanent – amid locals hitting out at the plan, describing it as ‘blackmail’ for infrastructure.

People enjoying a hot day at Clovelly Beach. Picture: NCA NewsWire / Flavio Brancaleone

A coastal Sydney council has supported a move to continue a 20-year environmental levy which it says funds a raft of projects and initiatives, however it was slammed by one resident calling it “financial blackmail”.

Randwick councillors, on Tuesday night, voted in support of a proposition at its extraordinary meeting to make permanent its ‘Sustaining Our City Environmental Levy’, which is funded by a “Special Rate Variation” (SRV) – allowing council’s to increase rates – and due to expire on June 30.

It follows the council last year approving up to $160,000 of environmental levy funding to prepare its “extensive” community consultation and prepare project documentation for its SRV application.

Thousands of residents responded to the consultation by telephone or mail survey.

However, the levy shouldn’t come as too much of a shock for Randwick residents given it started in 2004 and it was $101 for the 2023/24 financial year, making it just $1.95 per week.

Ahead of the meeting, independent councillor and former mayor Noel D’Souza called on his fellow colleagues to “build bridges … mend fences and … protect our environment” by voting in favour of the levy.

The environmental levy will help fund the completion of the coastal walkway.

“We have a chance to continue the good work such as the costal walkway, water harvesting, environmental education programs, workshops, and festivals,” he said.

“The Environmental levy also funds other environmental initiatives such as gross pollutant traps which improves water quality run-off at our beaches.

“There should be little debate on this matter as this should not be a time of bitterness and division but a time to heal. Needless to say, a vote against this levy would be socially self-destructive and self-defeating for us and our residents.”

Councillors voted unanimously in support of the consultation in October last year.

As for the residents, out of 750 participants in the telephone survey, roughly 92 per cent were either very supportive, supportive or somewhat supportive.

Eight per cent, however, were not very supportive or not at all supportive.

The division was far wider in the ratepayer survey and in resident submissions with almost a 50/50 split.

“This is financial blackmail – ‘if you don’t provide council with more money, then we won’t provide these services’ … How dare you hold a gun to ratepayers heads,” one resident submitted.

“It is outrageous … council can’t find $6m/year in reduced expenses … ongoing savings and efficiency to fund the environment projects and services detailed in the so called levy.”

Randwick Council responded by reiterating the levy wasn’t new and it funds initiatives which are “beyond the scope of maintaining existing services and projects”.

An application will now be lodged with the independent Pricing and Regulatory Tribunal to continue the SRV.

According to council papers, the tribunal undertakes its own thorough assessment of applications from councils, including “exhibiting the proposal” again in March or April for further consultation.

A decision would then be expected in May.