Newcastle City Council's Labor majority and the Independents alliance have clashed again over how the council is spending its windfall from higher rates.
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The council approved financial statements on Tuesday night which show its annual rates and annual charges revenue has grown from $128 million in 2015, when the council applied successfully for a 46.9 per cent rate rise over five years, to $171 million in 2019.
Its annual income from user charges and fees has also grown, from $66 million in 2015 to $90 million in the most recent financial year.
The council's total annual revenue was $336 million, up $77 million on four years ago and almost $26 million on last year.
The revenue growth allowed the council to return a surplus of $9.4 million in 2018-19, the sixth consecutive year it has been in the black.
The financial statements include an audit by the NSW Auditor-General's office which notes that the council's financial position exceeded a range of local government benchmarks for revenue, containing spending and cash reserves.
Improving the council's financial position, described by former general manager Phil Pearce in 2013 as approaching "possible insolvency", was one justification for the council's submission for a special rate variation to the Independent Pricing and Regulatory Tribunal five years ago.
The council has ticked that box, but another aspect of its IPART submission, to reduce the city's maintenance backlog, is looking less rosy.
The accounts approved on Tuesday show the city's infrastructure backlog ratio continues to rise rather than fall.
They say the estimated cost of bringing the city's footpaths, pools, drains, cycleways and public buildings to a "satisfactory standard" now stands at $126 million, or 11.59 per cent of the total value of the city's assets. Last year's ratio was 10.95 per cent.
Port Stephens Council's backlog ratio is 1.8 per cent and Lake Macquarie's was 2.43 per cent last year, both of which are close to the Office of Local Government benchmark of 2 per cent.
The most recent OLG council performance report shows a dozen NSW councils also have double-figure infrastructure backlog ratios.
Deputy lord mayor Declan Clausen (Labor), quoting from the financial statements, said the council had an $86 million backlog of maintenance works, down from $100 million last year.
This figure is based on what the financial statements say is the "cost to bring assets back to agreed service level set by council", rather than the higher "satisfactory" level in OLG guidelines.
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Cr Clausen praised the council's financial position and pointed to its $91 million works budget last financial year, including $23.5 million spending on roads and bridges.
But Newcastle Independents councillors revived their criticism of what they regard as a lack of spending on maintenance.
Cr John Church said ratepayers were now paying nearly 36 per cent more than they were four years ago.
"We're now throwing off a large surplus by historical standards, which simply means we're collecting significantly more taxes than we're spending," he said.
"That must be galling for the many people who use our inland pools and discover how little was spent on their maintenance last year.
"Or the Hamilton rugby union club, who are forced to use a rundown facility at Wickham Park, including a toilet without a roof.
"Or the visitors to Newcastle's iconic ocean baths who see a tired facility with Acrow props holding up the heritage facade."
Mr Church said the council had given undertakings to IPART to reduce its maintenance and asset renewal backlog to 2 per cent, but chief executive officer Jeremy Bath told the meeting that the council had never had an agreement with IPART.
Lord mayor Nuatali Nelmes (Labor) dismissed Cr Church's position as "politics at its best".
Cr Kath Elliott (Independent) said the council was $40 million behind in its spending on maintenance and asset renewal in the past three years and was "kicking the can down the road to the next council and the next generation".
She said the surplus was not a surprise given the sharp rise in rates and the council was not honouring its "commitment to the people of the city by adequately maintaining and renewing its assets".
The council's 2019-20 budget includes spending $14 million less on existing infrastructure than in 2018-19.
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