Sydney council votes for 40% rate hike

Northern Beaches Council in Sydney is facing community backlash after it narrowly voted in favour of seeking permission for a 40% rate increase.

Hundreds of residents turned up in stormy weather at the council meeting in Dee Why Tuesday evening to protest against the move, which passed by a single vote – 8-7 in favour of the raise.

The four-hour meeting had to be stopped twice due to residents disrupting proceedings by jeering and swearing at councillors.  

The rate increase of 39.6% over three years is to address a budget deficit and fund infrastructure projects, council has said. 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,” said the proposal.

A special variation to rates was needed, said council, “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.”

Despite residents rejecting the SV proposal though a consultation survey, the vote – which offered three options: no change, a slightly lower increase, or improve services – went ahead. “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.

Northern Beaches Council – which was formed in 2016 by merging the Manly, Pittwater, and Warringah councils – covers around 50 suburbs and represents about 267,000 residents. Rates are council’s main source of income, currently accounting for 44% of all revenue.

The proposed rate increase – which will raise an additional $57 million per year – will now be forwarded to the Independent Pricing and Regulatory Tribunal for review.

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