Northern Beaches rate rise: Businesses plea for 40 per cent hike to be rejected

A plea has gone out from the business community for authorities to reject Northern Beaches Council’s bid to slug it with a 40 per cent rates rise. Here’s what they say.

Northern beaches’ businesses have pleaded for the rejection of council’s controversial bid to slug property owners with a 40 per cent rate rise.

The Manly Business Chamber, which represents dozens of firms, says the rates hike can’t be justified because the council already has enough money in the bank.

In its submission to the independent Pricing and Regulatory Tribunal (IPART), the chamber argues the massive jump in commercial and residential rates is not needed as the council holds more than $200m in reserve funds and investments.

The council has applied to IPART — the body that decides on Special Rate Variations for councils — to spread the 39.6pc rate rise across the next three years.

It says if it can’t collect the extra income from ratepayers — an average $673 per year — the council’s “long-term financial sustainability” will be threatened.

Some of the 200 commercial and residential ratepayers who protested outside the Northern Beaches Council meeting in January that voted to seek the 39.6 per cent rates rise. Picture: Jim O’Rourke

Mayor Sue Heins has predicted that the council would have to cut some services, slash spending on new public infrastructure and would struggle to keep up with maintenance of roads, parks and drains if the rate rise is rejected.

In its official IPART application, the council stated that high inflation, severe weather events, Covid as well as increases in costs like the state government’s Emergency Services Levy, insurance and gas were “placing significant pressure on council’s ability to maintain infrastructure and services at the required level”.

A section of the Northern Beaches Coast Walk at South Curl Curl. The council says it needs more money to complete the missing sections of the walk that runs between Manly and Palm Beach. Picture: Northern Beaches Council

It said an additional $255m was required over the next 10 years to fill funding gaps including $87m for roads, footpaths, bridges and other transport assets, $69m for open space and recreation assets, $57m for stormwater drains and $42m for buildings.

As well as maintaining existing basic services, the council wants to improve surf life saving clubs, complete missing sections of the Coast Walk from Manly to Palm Beach, upgrade the 46-year-old Warringah Aquatic Centre, rebuild the Jamieson Park Sailing Club after a fire and tackle a shortfall in sporting fields.

But critics of the rate rise have said the council should cut back on unnecessary spending on “non-core” services such as open air cinemas, sell unused council property and reduce the size of the its management team.

In its joint IPART submission with the Manly Community Forum, the chamber said it had commissioned financial analysis by senior consultants with expertise in local government finance, which suggested the increase was unnecessary and placed an “unjustified burden” on ratepayers.

The council says the Warringah Aquatic Centre, which opened in 1979, needs an upgrade. Picture: Manly Daily

Torrential rainfall in North Manly in March, 2022, flooded Nolan Reserve. The council says its needs more money for future stormwater works. Picture: Jim O'Rourke

The submission stated that the council had recorded cumulative surpluses of $160m over the past three financial years.

It stated that the council had more than $200m in reserve funds and investments, with $80m in unrestricted funds.

The chamber also argued that the council had paid down $81m in loans and was “now largely debt-free”.

The council also wants to rebuild the clubhouse and facilities for the Narrabeen Lakes Sailing Club in Jamieson Park, Narrabeen, after it was destroyed by fire. Picture: NSW Police

Chamber president, Steve Carrodus, said it appreciated the opportunity for independent oversight by IPART “in ensuring fair and responsible financial management”.

“We will await the governing body’s decision and trust that it will be made in the

best interests of the community,” Mr Carrodus said.

Originally published as Northern Beaches rate rise: Businesses plea for 40 per cent hike to be rejected