‘Disgusting’: Outrage as Northern Beaches Council votes to raise rates 40 per cent

One of Sydney’s largest councils faced a furious backlash after voting to raise rates by 40 per cent. But it’s what they did beforehand that has residents fuming.

Hundreds of furious Sydney residents have protested their local council ahead of a move to raise their rates by 40 per cent, with councillors ignoring their pleas — and the council’s own consultation process — to vote 8-7 in favour of the hike.

Northern Beaches Council (NBC) voted on Tuesday night to apply to NSW’s independent regulator to increase rates by 39.6 per cent over three years, in a move branded “disgusting” and “disgraceful” by struggling residents, Manly Daily reported.

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The proposed rate increase, which will raise an additional $57 million per year for the cash-strapped council, will now be determined by the Independent Pricing and Regulatory Tribunal (IPART) in its annual 2025-26 special variations process.

NBC covers roughly 50 suburbs stretching from Palm Beach to Manly and represents about 267,000 residents.

“Disgusting,” Narrabeen resident Jenny told the newspaper, saying her rates would increase from $400 per quarter by hundreds of dollars under the proposal.

“They are treating us like idiots. The mayor sounded like a schoolteacher chastising us. A lot of us are struggling. This is going to send people and a lot of small businesses to the wall.”

About 200 furious residents gathered outside the Dee Why council chambers ahead of the vote, which sparked cries of “sack them all” from the gallery, Manly Daily reported.

The meeting had to be stopped twice due to members of the public shouting at councillors, and multiple people walked out in frustration, according to the report.

Councillors were at each other’s throats during the four-hour meeting.

Cr Miranda Korzy, who was in favour of the rate rise, sparked jeers and boos from the public after she said calls for “cuts and efficiencies” were part of “the neoliberal drumbeat we are hearing in the community”.

Cr Vincent De Luca, who opposed the increase and had called for cuts instead, repeatedly interrupted Cr Korzy’s comments trying to raise a point of order.

“Sorry, what’s your point of order?” an irritated Cr Korzy snapped.

“I’m happy to tell you the point of order if you’d please just be quiet and let me say it,” he replied.

“Why don’t you just shut up?” Cr Korzy hit back.

“The point of order is our code specifically says that no one should be discriminated against,” Cr De Luca said. “If a Liberal Party member, a Libertarian, a Green wants to get up, who bloody cares? Are you saying you won’t listen to them because they’re a Liberal?”

Council said in the proposal that the rate rise was needed to “maintain financial sustainability and to continue to deliver services and assets as expected by our community”.

Rates, which are levied on the basis of land values, are the council’s main source of income, currently making up 44 per cent of revenue.

Protesters outside council on Tuesday. Picture: Thomas Lisson/The Daily Telegraph

“Like many councils in NSW, [Northern Beaches Council] is facing growing pressure to its financial sustainability as increases in income, under the NSW rate peg system, have not reflected the rising costs of materials, contracts, and construction, with Sydney’s inflation over the four years to June 30, 2024 being almost double the increase in rates income,” it said.

“A special variation (SV) to rates will be required if council intends to continue to meet community expectations and deliver existing services and service levels as well as ensure availability of funding for new and upgraded assets, environmental outcomes, loans and unforeseen events such as storms, and remain financially sustainable in the long-term.”

A community engagement process polled residents on several options, including staying at the rate peg — the maximum amount set by IPART that councils can raise rates without approval for a special variation.

Struggling locals opposed the rate increase. Picture: John Appleyard

Fifty-one per cent of the roughly 6000 respondents backed no change, or to “reduce” service, while 32 per cent supported option two, which would have maintained services while still increasing rates by a sizeable 31.1 per cent over three years.

But council nevertheless voted in favour of option three, “improve services” — an option favoured by just 11 per cent of respondents — to permanently increase rates by 39.6 per cent.

“While many of the survey respondents indicated they did not want an SV, there was also support for levels of service to be improved, which is not possible without a rate increase,” council said.

“While option two provides funding to maintain services, it does not deliver the capacity to undertake improvements and major renewal works. Improvements that were mentioned by the community included those regarding environmental protection, sporting amenities, footpaths and roads.”

Northern Beaches Council blamed the Covid pandemic, as well as storms, flooding and bushfire threats in recent years, for its perilous financial position.

Northern Beaches Mayor Sue Heins. Picture: Supplied

Covid resulted in a net cost to council of $41 million, while seven natural disasters over the past six years cost $15 million, of which $7 million had been recovered from federal government disaster funding arrangements.

Various cost cutting measures totalling $2.4 million over the past three years “are unable to fully offset the impact of recent high inflation levels”, council said.

Cr De Luca had previously pointed out that council was spending $25 million on 111 managers, directors and executives.

Northern Beaches Council employs 1800 staff at a total cost of $159 million, accounting for 40 per cent of its annual budget — but insisted that “the number of staff within the organisation, by itself, is not a useful measure of its efficiency”.

Cr De Luca had called for council to seek cost savings by axing “non-core” services such as Open Air Cinemas, World Food Markets and Food Trucks.

“Sadly, this waste of ratepayers’ money continues,” he told Manly Daily.

In response to those calls, council said a “reduction in some non-essential service and administration would not be of a scale to offset the required level of funding for council’s asset maintenance and renewal backlogs that are in the order of approximately $40 million per annum and increasing”.

The application to IPART must be made by February 3. Ratepayers will then be able to make submissions through a public consultation process.

Northern Beaches Council has been contacted for comment.

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Originally published as ‘Disgusting’: Outrage as Northern Beaches Council votes to raise rates 40 per cent