‘Completely unreasonable and unacceptable’: Businesses slam insane rate hike by council

Business owners have slammed council over the decision to increase rates by a whopping 87 per cent following a fiery meeting on Monday night.

Businesses have slammed a Sydney council over their controversial decision to hike rates by 87 per cent, in a move which owners say will “sink” local retailers.

Chaos broke out in North Sydney Council chambers as the proposed rate hike was passed 7-3 on Monday night, sparking cries of “bring on the next election” from a rowdy public gallery.

Under the special rate variation (SRV), the minimum residential rate, currently paid by 72 per cent of North Sydney residents, will rise from $715 per quarter to $1200 in 2025-26, with the minimum business rate set to increase from $715 to $1400.

The hike has stemmed from the botched redevelopment of the heritage-listed North Sydney Olympic Pool, where projected costs have blown out from around $30 million to a total estimate of $122 million.

The move has shocked local businesses, who say they will not be able to afford the increase in business rates amid the current cost of living crisis.

Ricky Ocampo, who has been running Ricky’s Fitzroy cafe in Kirribilli for the past 14 years, said the hike could not have come at a worse time.

“[Costs] used to go up and go down and now they just stay up,” he said, citing rising electricity prices as also putting a major strain on businesses.

The owner of Ricky’s Fitzroy cafe in Kirribilli. Picture: News Corp Australia

“Since Covid, we’ve seen a change in the pattern of spending. Everything is now more expensive to buy and we don’t want to pass that on to the customer.”

Sam Rains, who owns the Rusty Dust cafe in North Sydney, said small business owners are currently being “smashed from all angles”.

“This is just another whack to what is already an extremely tough period,” Mr Rains said.

“North Sydney council have been saying they want to reinvigorate North Sydney, this is most certainly not the right way to go about it.”

Mr Rains said to make the change so “quickly and drastically” with little warning was “completely unreasonable and unacceptable”.

“It is reported that they expect one in ten food and beverage businesses in Australia to close this year, there’s already been a lot closing their doors in North Sydney, and this will force the number of closures even higher,” he said.

Rusty Dust cafe owner Sam Rains, pictured with his nephew. Picture: Supplied

North Sydney council has bungled the revelopment of its 88-year old pool. Picture: Supplied

Another local business owner, who wished to remain anonymous as he had previously been reprimanded by the council for speaking to the media, said he was considering packing up his store after almost a decade due to the rate hike.

“I put on a front for the customers but I’m just done with it. I’m just exhausted,” he said.

“North Sydney council are a**holes.”

Only 5 per cent of respondents in North Sydney council’s community engagement survey have backed the 87 per cent proposal.

North Sydney Council currently generates about $150 million in revenue per year. Picture: News Corp Australia

Residents were so furious in the Monday night meeting that Mayor Zoe Baker, an independent, angrily clashed with the public gallery and demanded they “show some respect”.

“I’m stopping the clock because this is an outrage!” she snapped during one disruption.

“You’re happy to listen to the Liberal Party councillors but you will not listen to those who aren’t!”

Originally, North Sydney Council sought feedback from residents on four options, ranging from 65 per cent to 111 per cent cumulative increases over three years.

Council has argued the hike is needed to help pay off $51 million in loans taken out for the botched North Sydney pool redevelopment.

Council still doesn’t have a reopening day for the multimillion-dollar project. Picture: News Corp Australia

The 88-year-old heritage-listed pool next to Luna Park has been closed since early 2021, with a reopening date yet to be confirmed as the project spiralled into disarray.

North Sydney Council represents about 69,000 residents in Sydney’s lower north shore including Cremorne, Kirribilli and Neutral Bay.

The region is ranked as the country’s fifth most advantaged local government area by the Australian Bureau of Statistics (ABS).

The owner of Bamfords restaurant Alastair Pond said prices were always inevitably going to rise.

“We are in Kirribilli. I think people will be OK,” he said.

Originally published as ‘Completely unreasonable and unacceptable’: Businesses slam insane rate hike by council