Rising costs of North Sydney Olympic Pool rebuild set to impact ratepayers

The increasing costs of the rebuilding of the North Sydney Olympic Pool - understood to have now reached $91 million - are reported to be pushing North Sydney Council into a precarious financial position.

With an October project update saying the current value of the construction contract is $91.47 million (the revamp was originally predicted to cost $58 million and be finished in late 2022), the Sydney Morning Herald has reported that local rates may have rise to meet the increased project cost.

As construction continues, the Council says it will need to make “critical decisions” given the rising cost, with the Herald quoting North Sydney Mayor, Zoe Baker as saying “if we do nothing, our 10-year outlook is unsustainable.”

Mayor Baker has previously said the final bill could reach $110 million.

The project to overhaul the pool - which includes upgrades to the indoor and outdoor pools, a new grandstand, children’s water play area and expanded gym has been plagued by a litany of problems - including repeated cost blowouts, protracted delays, heritage concerns, legal stoushes and doubts over its scale and design.

The Council’s ‘state of North Sydney report’, published last week, said an independent review conducted by consultants PwC (which the council commissioned in 2022), highlighted decisions made in the initial planning phase of the project which left “high-level risks realised and unable to be fully mitigated”.

It added “the escalating costs associated with the project will continue to exert pressure on the council’s finances, leading to further reductions in cash reserves, increased borrowing and a decline in infrastructure renewals.

“Over the coming year, strong financial management will be essential, and the council will need to make critical decisions to improve its financial position and meet the community’s needs and expectations.”

With Royal Life Saving Society - Australia (RLSSA) having previously reported on the challenge of refurbishing the nation’s ageing infrastructure of aquatic facilities and the Sydney Morning Herald this week also reporting on financial pressures on regional local governments that are seeing reduced opening hours of some public pools, the cost blowouts of the North Sydney Olympic Pool project may well impact other potential refurbishments.

Wider impact of the North Sydney Olympic Pool project
On social media, Royal Life Saving Chief Executive Justin Scarr has suggested that “the true cost of the North Sydney Pool refurb is much more than $91 million (and is) drowning out hope of a pool rebuild or refurbishment for many more communities across Australia.”

Pointing to RLSSA having previously reported the urgent need for upgrades to 500 community pools over the next decade, Scarr goes on to state “rapid urban development means many more people in densely and diversely populated suburbs have to pack a picnic to get to a good place to swim or wait in line to get lessons for their kids.

“Yet, whenever the idea of a comprehensive targeted investment strategy for community pools is raised the most common response is ‘what about North Sydney’, usually with an eye roll.

“Busting through the cynicism is a challenge but it’s not impossible.

“Local communities love their pools. Those reaching beyond the Speedo wearing cohort, make a real additional contribution to health and social cohesion for those who need it most.

“I visited the Whitlam Leisure (Centre) in Liverpool a month ago (and) it was heaving on a Tuesday night. It serves as an important community focal point.

“I visited my favourite regional pool at Tullamore, Central West NSW. It serves a few hundred and outlying farms.

“Two extremes but the same joy, especially on a hot summers day. It was being spruced up for summer.

“The politics of the local pool needs figuring out and quickly, before it’s too late. It’s not rocket science but requires a small coalition prepared to put community first.”

Images: 2023 concept for the redevelopment of the North Sydney Olympic Pool (top) and, the refurbishment of the pool includes preservation of its heritage elements which date back to is construction in 1936 (below).