23 June 2025
North Sydney Council is poised to end the 2024–25 financial year in a significantly stronger position than forecast at the time of its 87% special rate variation (SRV) application, with latest figures showing a $9.8m operating surplus before capital grants and contributions—up from the $2m deficit in the adopted budget.
The May 2025 month-end report, presented to councillors on Monday evening, also revealed that total income from continuing operations had reached $147.3m, or 95.88% of the full-year budget, while expenditure stood at $126.3m, or 87.85%—producing a year-to-date operating result of $21m against a budgeted $9.9m.
The outcome prompted scrutiny during public submissions, with local resident George Loiterton noting the dramatic shift from the SRV campaign figures, which cited a net operating loss of $6.4m. “Obviously it seems to be an improvement from what we were seeing back in the SRV as it came out… I’m just querying, there was a negative $6.4m net operating loss in that SRV. In this document… it’s saying a negative $2m number,” Loiterton told councillors.
Loiterton asked when the long-term financial plan would be updated to reflect the improved outlook and also queried the Council’s strengthened cash position, which now stands at $143m—well above the $80m projected in SRV materials.
In response, council officers stated that a review and update of financial modelling and the long-term financial plan is scheduled for the first half of the 2025–26 financial year. They also confirmed that the current cash position included deferred capital works, particularly $30m in delayed spending on the North Sydney Olympic Pool and noted that once restricted reserves and earmarked project funds were accounted for, the underlying position had not materially changed.
The report also confirmed that Council had benefited from a number of one-off revenue sources, including $2.7m in additional interest income due to delayed capital works, $1.13m in legal cost recoveries, $1.43m in compulsory acquisition income, and $1.05m in unanticipated grants. Further savings were found in employee and contractor costs, as well as materials and services spending, which remained nearly 15% below budget by the end of May.
Liberal councillor Jessica Keen welcomed the improved results, saying it was a “positive message” and that “we don’t need to cut services… we can reassure North Sydney residents.”
However, Real Independents councillor MaryAnn Beregi struck a more critical tone, warning that the apparent gains were largely due to project delays and unsustainable savings. “The money that is looking good is purely because we have delays from the inherited disastrous North Sydney pool project,” she said. “I’m not sure that’s something that really is to be celebrated nor that should be relied upon at all.”
Beregi also pointed to staff vacancies and underspending on maintenance and service programs as red flags for future sustainability. “Any celebration of this kind of result really shows a little bit of naivety as to how local government finances work,” she said, adding that North Sydney’s unrestricted reserves—$70.2m—remained well below those of neighbouring councils such as Lane Cove, Willoughby and Parramatta.
Council ultimately adopted the May financials unanimously, while reaffirming plans to reassess reserves and financial modelling once end-of-year accounts are finalised.