Aussies have been left outraged as a council prepares to hike its rates over fears it could financially collapse as costs to redevelop an iconic swimming pool near Sydney Harbour Bridge blow out.
North Sydney Council revealed in September the cost for redeveloping its North Sydney Olympic Pool had blown out to $91.5million – tens of millions of dollars over its original $64million budget.
But the project is now forecast to cost a whopping $122million when finished in May 2025 – more than two years after the original completion date was set for Christmas 2022.
The redevelopment has been hit by a raft of construction issues including the installation of the steel roof frame – which was torn down after ‘significant’ design problems were uncovered.
The affluent council said the disastrous project has left it financially ‘unsustainable’, the ABC reported.
As a result, the council will vote on raising property rates by 65 to 111 per cent over the next three years and will also consider selling some of its facilities.
The beleaguered redevelopment has taken funds that are needed to maintain the other buildings and facilities the council owns.
Outraged residents took to social media to vent their anger over the budget blowout and possible rate hike – with the minimum rate rising from $715 to $1,300-a-year.
‘All councillors and the mayor should resign immediately and financial moderators brought in. A full investigation is needed,’ one wrote on Instagram.
‘$91million for a bloody swimming pool?’ another said.
Another added: ‘The community have to pay for the council’s incompetence? Did I interpret that right?’
‘The way they charge for parking they should raise it by week’s end,’ a third joked.
The average residential rates would jump from $1,040 to about $1,600 next financial year, while average business rates would increase from $6,724 to $11,307.
The council will be asking the public for their opinion on four different rate rise options and will then make a Special Variations application to the Independent Pricing and Regulatory Tribunal.
North Sydney Council chief financial officer Aigul Utegenova said the council is financially ‘very weak’.
‘The financial outlook is unsustainable,’ she said.
‘Through decisions made in the initial planning phase, including the contract strategy and the decision to proceed prior to designs being complete, significant risk was taken and has been realised,’ she said.
Ms Utegenova added the council had also experienced more debt increased costs, more debt, and less cash on hand.
North Sydney Council mayor Zoë Baker said the council has to have ‘a really serious conversation as a community about the financial impacts of the pool’.
She admitted she felt the anger coming from the community and blamed the previous council for the ‘financially perilous decisions’.
‘As a result of the pool project, a decade of neglect of maintenance of council properties and assets and the financial impacts of Covid, this council must undertake a financial repair strategy to ensure financial stability for council now and into the future,’ she told the Daily Telegraph.
‘As a community, we need to consider every option including a review of rating revenue.’
In a North Sydney Olympic Pool Redevelopment Update, which the council supplied to Daily Mail , a revised date for completion has been changed by the contractor from July 11, 2024 to May 23, 2025.
‘The major reason for the difference between these dates is the delay associated with the structural steel over the roof of the 25m indoor pool, which remains in dispute,’ it read.
In the redevelopment update, North Sydney Council director open space and infrastructure Gary Parsons revealed the new estimated price tag for the pool to be completed.
‘Current forecast project costs total $122.2 million,’ he wrote.
‘A review of available budgets has been undertaken and it is recommended that additional funding of $17,203,322 is made available to complete this project.
‘This does not take into account any legal recoveries that may be forthcoming on the project.’
North Sydney Council covers 69,000 people and is the fifth most advantaged LGA in .
It earned $150million last financial year, as well as the one before that.
Daily Mail contacted the council’s contractor, ICON, for comment.