Australians have been outraged as a council prepares to increase its rates over fears it could collapse financially as costs soar to rebuild an iconic swimming pool near the Sydney Harbor Bridge.
North Sydney City Council revealed in September that the cost of refurbishing its North Sydney Olympic pool had risen to $91.5 million, tens of millions of dollars more than its original $64 million budget.
But the project is now expected to cost a whopping $122 million when completed in May 2025, more than two years after the original completion date was set for Christmas 2022.
The refurbishment has been hit by a number of construction issues, including the installation of the steel roof structure, which was torn down after “major” design issues were discovered.
The wealthy council said the disastrous project had left it financially “unsustainable”, the alphabet reported.
As a result, the council will vote on increasing property rates by between 65 and 111 per cent over the next three years and will also consider selling some of its facilities.
The beleaguered refurbishment has required the necessary funds to maintain the other buildings and facilities owned by the council.
Outraged residents took to social media to express their anger over the budget blowout and potential rate hike, with the minimum rate rising from $715 to $1,300 a year.
The refurbishment of Sydney’s iconic and world-famous North Olympic Pool (pictured) has cost more than $90 million so far and is expected to cost more than $122 million when completed in May 2025.
“All councilors and the mayor should resign immediately and bring in the financial moderators. A full investigation is needed,” one wrote on Instagram.
‘$91 million for a damn pool?’ said another.
Another added: ‘Does the community have to pay for the council’s incompetence? Did I interpret it correctly?
“The way they charge for parking, they should raise it before the weekend,” joked a third.
Average residential rates would rise from $1,040 to about $1,600 next financial year, while average commercial rates would rise from $6,724 to $11,307.
The council will ask the public for their views on four different rate increase options and will then submit a Special Variations application to the Independent Pricing and Regulation Tribunal.
North Sydney Council finance director Aigul Utegenova said the council is financially “very weak”.
“The financial outlook is unsustainable,” he said.
Pool remodel remained dormant during Covid closures (pictured)
“Through decisions made in the initial planning phase, including contract strategy and the decision to proceed before designs were completed, significant risk was assumed and has been realised,” he said.
Ms Utegenova added that the council had also experienced higher debt costs, more debt and less cash on hand.
North Sydney Council mayor Zoë Baker said the council needs to have “a really serious conversation as a community about the financial impacts of the pool”.
He admitted he felt anger coming from the community and blamed the previous council for “financially dangerous decisions.”
“As a result of the pool project, a decade of neglect in the maintenance of council properties and assets and the financial impacts of Covid, this council must undertake a financial repair strategy to ensure the council’s financial stability now and in the future. future,” he said. he Daily Telegraph.
“As a community, we must consider all options, including a review of rating income.”
In an update on the North Sydney Olympic Pool redevelopment, which council provided to Daily Mail Australia, the contractor changed a revised completion date from July 11, 2024 to May 23, 2025.
“The main reason for the difference between these dates is the delay associated with the structural steel on the roof of the 25m indoor pool, which remains in dispute,” it reads.
In the redevelopment update, North Sydney Council’s director of infrastructure and open spaces, Gary Parsons, revealed the new estimated price for the pool to be completed.
“Currently projected project costs are $122.2 million,” he wrote.
‘A review of available budgets has been conducted and it is recommended that additional funding of $17,203,322 be made available to complete this project.
“This does not take into account any legal recovery that may occur on the project.”
North Sydney Council covers 69,000 people and is the fifth most advantaged LGA in Australia.
He earned $150 million last year, as well as the year before.
Daily Mail Australia has contacted the council’s contractor, ICON, for comment.