A chaotic council meeting in North Sydney ended with a 7-3 vote in favor of a massive 87% rate hike, leaving dozens of angry residents fuming.
The decision comes as a result of a $122 million pool redevelopment debacle, which has left the council with significant debt.
What Does This Mean for Residents?
Under the proposed special rate variation (SRV), North Sydney residents will face a 45% increase in rates in 2025-26, followed by a 29% increase in 2026-27.
The minimum residential rate will skyrocket from $715 per quarter to $1200 in 2025-26, while the minimum business rate will rise from $715 to $1400.
For many residents, this means a significant increase in their weekly expenses, with some facing the possibility of paying over $300 per week in rates.
The Reason Behind the Rate Hike
The council attributes the need for the rate hike to over a decade of neglect by the former Liberal-aligned council, which has resulted in a significant infrastructure maintenance backlog of $146 million.
The botched redevelopment of the North Sydney Olympic Pool, which has seen costs blow out from $30 million to $122 million, has also contributed to the council’s financial crisis.
Non-rates revenue, such as parking, has fallen by $9.9 million due to Covid, leaving the council facing a liquidity crisis.
Residents Express Outrage
Many residents spoke out against the proposed rate hike, describing it as a “cruel joke” and “daylight robbery.”
Some expressed concern about the impact on low-income families, elderly residents, and small businesses, which may struggle to afford the increased rates.
Others suggested that the council should explore alternative solutions, such as cutting costs, selling assets, or seeking corporate partnerships to offset the expenses.
Council’s Response
Mayor Zoe Baker defended the rate hike, stating that it is necessary to secure the council’s financial sustainability for future generations.
However, not all council members were in agreement, with some opposing the SRV and advocating for alternative solutions.
What’s Next?
The NSW independent regulator will now determine the application for the SRV. In the meantime, residents are left to wonder how they will afford the significant increase in rates.
As one resident aptly put it, “It’s a s**t sandwich, but I’m going to eat it.”
The question on everyone’s mind is: will the regulator approve the rate hike, and what will be the long-term impact on the community?