Market Data
Controversy Erupts Over North Sydney Council’s Proposed 87% Rate Hike
A heated debate erupted at a recent North Sydney Council meeting as the council proposed an unprecedented 87.05% rate hike over two years, sparking outrage among residents and business owners. The decision, which includes a 45% increase in the first year and a 29% jump in the second, has been met with fierce opposition, with many arguing it will exacerbate the already dire cost-of-living crisis. councillor Baker emphasized that the rate rise was a necessary step to address the council’s “unsustainable” finances, which have been severely impacted by the ballooning costs of the North Sydney Olympic Pool redevelopment. However, critics, including councillors and residents, have disputed this justification, with some blaming the financial woes on poor decision-making by previous council members.
Residents Voice Concerns About Financial Hardship
The proposed rate hike has left many residents and business owners in disbelief, with some describing it as a “s— sandwich” that would “kill” them financially. Andrew, a local property owner, expressed his frustration, stating that the double rates increase would place an unbearable burden on him. “Someone – not the councillors – must lose their job because you’ve lost control of your finances,” he said. Others echoed similar sentiments, with one resident noting that the council’s assumption that the area is affluent is deeply misguided. “People have said to me, ‘They assume we’re all rich in this area, but they couldn’t be more wrong,’” remarked councillor Rogers. The financial strain of the rate hike is particularly concerning given the broader cost-of-living crisis, with many struggling to make ends meet.
Blame Shifted Over Council’s Financial Woes
While some, like ratepayer John Hancock, have expressed support for the rate increase, arguing that it is a necessary step to ensure the sustainability of council services, others have been quick to assign blame for the council’s financial troubles. councillor Baker pointed to the North Sydney Olympic Pool redevelopment as the primary culprit, stating that it accounts for nearly 30% of the required rate rise. She accused the previous Liberal-aligned council of ignoring warnings about the project’s financial risks, describing it as a “bloated vanity project” that has diverted funds away from other critical assets. However, councillor Jessica Keen dismissed this reasoning, arguing that the rate rise is not solely about the pool but rather about generating $558 million in incremental revenue for the council.
Protesters Rally Against the Rate Hike
More than 100 protesters gathered outside the council chambers, bearing signs with slogans such as “no mandate” and “assets are not sacrosanct.” The demonstrators expressed their opposition to the rate hike, arguing that it would disproportionately affect vulnerable members of the community. Neutral Bay resident Ian Russ described the council’s financial situation as a “dog’s breakfast” and criticized the councillors who voted in favor of the proposal. “The councillors in the voting bloc should hang their heads in shame,” he said. “It’s completely outrageous. There’s no way IPART’s going to approve an 87% rates rise.” Despite the outcry, the council voted 7-3 in favor of the proposal, with Liberal councillors Keen and Efi Carr, and Independent James Spenceley voting against it.
Political Tensions Simmer Beneath the Surface
The debate over the rate hike has also taken on a political dimension, with some accusing the Liberal Party of exploiting the situation for electoral gain. councillor Baker criticized the presence of a Liberal candidate at the meeting, suggesting that it was an attempt to stoke community division and hijack reasonable debate. “This is not the time for cheap politics and populism,” she said. “We must make the decision in the broader public interest.” However, others argue that the council’s financial mismanagement is the real issue at hand, and that accountability must be taken for the decisions that have led to this point.
A Difficult Road Ahead for North Sydney Residents
As the council prepares to apply for a special rates variation with the NSW Independent Pricing and Regulatory Tribunal (IPART), residents are bracing themselves for a prolonged battle over the proposed rate hike. While some acknowledge the need for financial sustainability, many remain unconvinced that the burden should fall so heavily on homeowners and businesses. The decision has left a deep divide in the community, with many questioning whether the council has truly exhausted all other options before resorting to such a significant increase. Whatever the outcome, one thing is clear: the road ahead for North Sydney residents will be fraught with financial challenges, as they grapple with the repercussions of this contentious decision.
