13 March 2025
North Sydney Council executive staff engaged consultancy firm Morrison Low to prepare the groundwork for an 87% rate rise proposal months before the September 14, 2024, local government elections—without informing councillors or ratepayers.
Documents obtained under the Government Information (Public Access) Act show that Morrison Low submitted a proposal to North Sydney Council on August 5, 2024, outlining a strategy for securing the rate increase. The document states that the consultancy was responding to a request from Council, and a schedule included in the proposal suggests that work on the project had commenced as early as June 2024.
Council staff received the Morrison Low proposal 40 days before the election, yet at subsequent meetings on August 12 and August 26, did not inform councillors that preparations for a rate rise proposal were underway.
Despite procurement policies recommending multiple quotes for expenditures between $50,000 and $150,000, this was waived. Council Director Corporate Services Luke Harvey stated that “there are no other consultancies with the depth of experience and capability of Morrison Low to offer this SRV consultancy assistance.” He recommended engaging Morrison Low without a second formal quote.
Harvey’s memorandum further noted that the Service Unit Manager Customer and Communications had met with Morrison Low to discuss the approach. Three days later, Council Chief Executive Therese Cole approved the engagement, and Morrison Low formally acknowledged the commission that same day.
Over the following month, while the election outcome was finalised, work on the proposal continued. An extraordinary council meeting was held on October 8 to swear in the new councillors, followed by the first general meeting on October 14. At neither meeting did council staff report that an SRV application was in progress. Council’s annual financial report, lodged on October 14, made no direct mention of the proposal, stating only that “Council must take strategic steps to address its financial performance and position during the 2025 Financial Year.”
The proposal was not disclosed at the November 11 meeting either. It was first raised on November 27, when an SRV consultation plan appeared as Item 10.7 on the agenda. That night, councillors voted 7-3 in favour of proceeding with the Morrison Low-developed consultation, and the public engagement campaign commenced the next working day. The vote was backed by four Real Independents, two Labor and one Green councillor.
The SRV application is now before the NSW Independent Pricing and Regulatory Tribunal, which is accepting public submissions until March 24.
Three councillors from the previous term—James Spenceley, Ian Mutton and Jilly Gibson—confirmed they were not informed of the SRV plan before the election. Mutton stated: “The matters of council’s finances and the engagement of Morrison Low were not on the agenda or raised for council meetings held on August 12 and 26—meetings held prior to the September election. The concern is that councillors and the electorate were left in the dark about an issue that, if transparency is seen to be important, should have been reported to the electorate.”
Council staff actioned the Morrison Low engagement on the first working day after the election, September 16. That day, Harvey wrote to Cole recommending the engagement of Morrison Low for the SRV proposal at a cost of $82,450, despite votes still being counted and the council effectively in a caretaker mode.
Further reading: COMMENTARY: North Sydney Council doesn’t have a financial deficit but a trust one – North Sydney Sun