North Sydney Council faces backlash over proposed 111% rate hike to cover Olympic Pool cost blowout

North Sydney Council is facing intense scrutiny after proposing a rate increase of up to 111% over three years to cover the financial fallout from the North Sydney Olympic Pool redevelopment. The project, originally estimated at $64 million, has spiraled out of control, with costs now projected at $122 million. In response, the council is considering dramatic rate hikes to offset the financial strain, a move that has angered residents and business owners who will bear the burden.

The council’s financial troubles stem from a series of missteps that have left it with a $51 million loan and an additional $34 million borrowed from internal reserves. This financial crisis has forced officials to consider drastic measures, including the proposed Special Rate Variation (SRV), which would see residential and business rates rise sharply. If the highest proposed increase is approved, minimum residential rates would jump from $715 per quarter to $1,716 by 2027, while business rates would increase from $715 to $1,848.

How Did the North Sydney Olympic Pool Redevelopment Spiral Out of Control?

The North Sydney Olympic Pool has been a community landmark since it opened in 1936, attracting generations of swimmers with its prime location under the Sydney Harbour Bridge. In 2021, the council launched a redevelopment project aimed at modernizing the aging facility. However, the project quickly ran into trouble, plagued by planning failures, unexpected construction challenges, and financial mismanagement.

An independent review conducted in 2023 identified critical flaws in the project’s execution. The council moved forward without finalizing the pool’s design, underestimated the impact of hazardous material removal, and failed to account for weather-related delays. Contractors were granted costly modifications, and key aspects of the redevelopment were not adequately planned. The review noted that the council lacked experience in handling projects of this scale, leading to the ongoing budget blowout and significant delays. The pool, which has been closed since early 2021, remains incomplete with no confirmed reopening date, further frustrating residents.

What Are Residents and Experts Saying About the Proposed Rate Hikes?

The proposed rate hikes have sparked outrage among North Sydney residents, many of whom are already struggling with rising costs. Community members have voiced their frustration in public meetings, with local business owners questioning why they should be forced to pay for what they see as poor financial management by the council.

Data analytics expert George Loiterton has strongly opposed the SRV, citing the council’s financial reports, which indicate that North Sydney Council is projected to add $67 million to its reserves over the next decade. He argues that if the council is not facing an immediate financial crisis, the justification for an extreme rate increase is weak. Business owner Kate Branch has also criticised the proposal, calling it “shocking” and pointing to millions spent on legal disputes, including cases before the NSW Land and Environment Court.

Residents have expressed concerns that the council is prioritizing revenue collection over responsible fiscal management. Many have called for alternative solutions, such as seeking additional state or federal government funding, selling off underutilized assets, or cutting non-essential expenditures. However, Deputy Mayor Godfrey Santer defended the rate hikes, stating that without them, essential council services such as waste collection, libraries, and road maintenance could be affected.

Could North Sydney Council Have Prevented This Financial Crisis?

Critics argue that the current predicament could have been avoided with better oversight and accountability. At a council meeting in November 2024, Councillor Chris Holding placed the blame on previous administrations, citing years of poor decision-making from 2012 to 2021 as the root cause of the financial mess. He pointed out that the budget blowout from $30 million to $122 million did not happen overnight and that warning signs were ignored.

The independent review of the pool redevelopment highlighted that the council lacked the experience to handle such a complex project. Some residents and local officials believe that greater financial transparency and more rigorous project management could have mitigated the risks. There are now growing calls for an external inquiry to investigate how the redevelopment spiraled out of control, with some suggesting that legal action may be warranted against those responsible for the costly mismanagement.

What Happens Next?

North Sydney Council has completed its public consultation process, gathering feedback from residents between November 27, 2024, and January 10, 2025. The council is set to vote on the proposed rate hikes on February 10, 2025. If approved, the proposal will be submitted to the NSW Independent Pricing and Regulatory Tribunal (IPART), which will conduct its own review before making a final determination. The council has been granted an extension until February 14, 2025, to submit its application, meaning there is still a short window for residents to voice their concerns.

The upcoming vote will be a defining moment for North Sydney, determining whether ratepayers will have to shoulder the burden of the cost blowout or whether alternative funding solutions will be pursued. As the controversy unfolds, the focus remains on whether the council can regain the trust of its residents after years of financial mismanagement.

A Defining Moment for North Sydney’s Future

The North Sydney Olympic Pool redevelopment has become a symbol of local government mismanagement, leaving residents facing a potential 111% rate increase to cover the financial fallout. While council officials insist that the rate hike is necessary to restore financial stability, public opposition remains strong, with many questioning why ratepayers should bear the burden for mistakes made at the administrative level.

With the February 10 vote fast approaching, the issue has reignited debates over financial transparency, project oversight, and accountability within local government. The final decision will not only determine the future of North Sydney’s finances but will also shape the relationship between the council and its residents for years to come.