Sutherland Shire residents will avoid a big rates rise next year after a proposed deal for bi-partisan support for the move was killed off by Liberal councillor Kent Johns.
Labor councillors warned at a heated meeting on Monday night a decision not to apply to the state government for a special rates variation for 2018-19 would set the council up for financial disaster.
However, Labor councillors were not prepared to support the recommendation of council staff unless the Liberals also did so.
Under the staff proposal, rates for houses would rise 7.2 per cent each year for three years, with a 17 per cent jump for apartments.
The staff report said the council’s financial position continued to deteriorate, with a 200 per cent increase in the natural gas price for Sutherland Leisure Centre given as one example.
The report said, to apply for a special rate variation, the council must submit a notice of intention to the Independent Pricing and Regulatory Tribunal (IPART) by December 15.
“The notice of intention does not bind council to making the application,” the report said.
A working party of Labor, Liberal and independent councillors has been working with council staff since early this year on a plan to address the growing gap between revenue and costs.
However, Cr Johns, the de-facto leader of the Liberals scuttled the plan when he moved at Monday night’s meeting the staff recommendation to seek a rates variation be “noted” – with no further action.
His motion was defeated, but Labor councillors were not willing to move unilaterally for a big rates rise.
Labor councillor Barry Collier said Cr Johns wanted “to engineer a headline in the Leader that says ‘Labor raises your rates’.”
Cr Johns said he was “advised the Labor Party wants to increase the rates but only if the Liberal Party agrees”.
“I will never be part of this dodgy back room deal,” he said.
Cr Johns said there was nothing in the staff report to justify a 21 per cent rise over three years.
He said residents were already paying a high amount, and they would not accept such an increase.
Cr Johns called the survey being conducted by council “push polling”, claimed labour costs were the council’s biggest burden and that fees for services needed to be considered.
Labor deputy mayor Peter Scaysbrook strongly refuted the claim of “a dodgy deal”, saying it was a working party that had worked hard throughout the year on a bipartisan approach.
Liberal mayor Carmelo Pesce said to Labor councillors, “If you want a rate rise, vote for it – don’t be chicken”.
