A 25% rate rise over the two years approved by the independent regulator is still a blow to families and businesses already struggling with the cost of living, says independent Pittwater MP Jacqui Scruby.
“If backed by councillors, it's five times the rate of inflation and will make a real dent in household and business budgets,” she said.
“While everyone will be relieved the proposed 40% rise was rejected, a 25% increase is no cause for celebration, especially as this is less than the options put forward, which may result in increased rates to only maintain services rather than invest in upcoming community projects.”
“What this decision shows is that IPART is a robust body that has critically analysed the proposal put by council. They’ve held the council to account and that’s a good thing.”
Its findings indicate that there will still be opportunities for investment, despite council considering that level of rise would only cover existing services and maintenance.
Ms Scruby, who opposed the original proposal acknowledges funding is an issue facing many councils across NSW, but has called for urgent NSW Government reform to stop ratepayers bearing the brunt of state cost shifting and rising costs. She has raised the issue in parliament, made a submission to IPART, and urged Minister for Local Government Ron Hoenig to invest more in local government, for pot holes, beach maintenance and flood damage, but also compel them to cut costs. She has also called on Northern Beaches Council to look at efficiency measures and rationalise senior management and Dr Sophie Scamps to be putting pressure on the Federal government to invest more in local government.
Earlier this week the NSW Government announced plans to reform council financial management with extra support and transparency.
“The Minns Government’s reforms are a start, but they don’t fix the real problem: councils being handed more responsibilities without funding, and rising costs. You can’t patch a pothole with a policy review. We need to have systematic changes to fund our local councils into the future.”
Ms Scruby supports calls to lift federal funding to councils from 0.5% to 1%, and ensure outer metropolitan councils like Northern Beaches aren’t overlooked.
“The community does want to see more investment in surf clubs, wharves and the Aquatic Centre, and with the rate rise being limited to covering existing services, there is more pressure on the NSW Government and Federal Government to invest. I’m happy to keep putting pressure on the NSW Government to come to the table.”