21 February 2025
North Sydney councillors have not been granted access to the contentious submission to a state regulator calling for an 87% rate rise in the LGA, even though it was sent off just a day or two after they voted 7-3 to approve it on February 10.
Two councillors, Jessica Keen and James Spenceley, told the North Sydney Sun that Council staff had not shared the submission with them, even though it was finalised and sent to the Independent Pricing and Regulatory Tribunal within a day of the proposed rise gaining acceptance from a majority of council members.
Councillors will have to wait until late next week, along with the rest of the public, when IPART is expected to publish submissions from all NSW councils seeking special rate variations. IPART is expected to open a consultation to the public on the same date, open for three weeks.
Cr Keen has also indicated that she has asked IPART to conduct a public forum – likely online – on the North Sydney SRV and that they are considering her request.
Despite not seeing the submission, councillors will be voting on a quarterly budget review and an investment and borrowings report at their next meeting on February 24.
The two reports state that Council’s cash and investment position was $141m at the end of January, just $3m less than the year before. Debt was around $60 million, the bulk of which is attributable to the pool and nearly $28 million of which is not due to be completely paid off until 2042.
Returns on investments exceeded the January YTD budget by $1,357,000 and Council recorded an increase in Operating Surplus (including Capital Grants and Contributions): The surplus increased by $0.8 million, reaching $4.2 million.
Proposed adjustments to the latest quarterly budget report result in a net increase of $17.961 million in Council’s forecast cash balances. This is due to the inclusion of a proposed $10 million loan, the deferral of capital works of $5.5 million and a slight improvement to the operating result.
POOL COSTS QUERIED? Meanwhile, former councillor Ian Mutton has queried Council reports on the cost of the pool, following a Sun report this week.
Mutton told the Sun that a new council report says that while the overall cost of the pool has been placed at $122 million, the actual revised construction contract value has been placed at $91.74m. Mutton said that the original publicly cited cost of the pool – placed at $58 million and then revised slightly higher post-tender – also reflected the construction contract at the time.
“Thus the actual cost increase of the pool relative to the original tender award is in the order of $30 million and not $60 million. Council needs to explain what constitutes the extra $30 million and how whatever those costs may be, whether they be design costs or interest costs or depreciation, could have been avoided and if not, why they have not been anticipated until now,” Mutton asked.
ARE NS RATES REALLY SO LOW? Cr Spenceley has also disputed Council claims that residential rates in North Sydney are much lower than comparable areas and that the 87% rate rise merely bring the LGA into line with the norm.
He says that if NS Council gets its way, minimum residential rates will rise to $1300, much higher than the City of Sydney ($669), Waverley ($747) and Parramatta ($790). Spenceley claims these areas were omitted from a Council analysis, even though they are most comparable to North Sydney because of their mix of residential and business activity.
He further adds that if NS Council is granted a 87% rate rise, its annual revenue will rise to $190 million from $138 million. Neighbouring Willoughby Council has annual revenue of just over $146m even though it has nearly 10% more population than North Sydney.
North Sydney residential rates are set at their current levels, in part, because of the immense contribution that businesses make to the rate base – around 40%. In neighbouring Mosman, business pays just 10% of the rate base, in Lane Cove around 20%.