File …. North Sydney Olympic Pool at Milsons Point. Photo by Vincent Rivaud / pexels
North Sydney Council is now reviewing all of its services and costs after its bid to increase its rate peg and special increases of 87% was rejected.
The Independent Pricing and Regulatory Tribunal (IPART) rejected council’s bids as it tries to refinance redevelopment of the iconic art deco North Sydney Olympic Pool.
The pool is at Milsons Point, between Luna Park and Sydney Harbour Bridge.
In a statement, council says the pool project drained its cash reserves and wanted to restore its liquidity.
Apart from wanting to increase its peg rates to $833 over the next two financial years for homeowners (up from $715) and $1091 for businesses, it also wanted a rate increase (special rate variation or SRV) of 45% for 2025-26 and 29% for 2026-27.
Council’s decision to approve the application at a meeting in February provoked an angry response as it descended into chaos, media reports say.
But IPART decided to limit council to just its rate peg of 4% for the 2025-26 financial year.
Tribunal chairwoman Carmel Donnelly says the decision applies to the next financial year only.
North Sydney Mayor Zoe Baker says the extra money could have gone towards repairing and maintaining infrastructure, and set council’s financial sustainability, over the next 10 years as the area’s population grows.
“It is incredibly disappointing that IPART refused both applications without considering even a partial approval of either, particularly the minimum rate application,” she says.
“This council is determined not to ‘kick the can down the road’ for a future generation to deal with.
“(But) without responsible financial management and provision of adequate funding, the burden shifts to the next generation or the one after that.”
COUNCIL TO CUT BACK
Council says backlogged and pending work including on North Sydney Oval, Stanton Library and sporting field upgrades will not go ahead, services, future plans are on indefinite hold and services will be reduced.
She told Sydney radio that council will now have to cut $25m from its next budget.
“This decision means council will have to make really tough choices and decisions. Service cuts, asset sales and other measures will have to be on the table – none of which support intergenerational equity.”
Council will now review its services and programs, identify areas for spending and operational cost-cutting, and defer most of its projects.
