31 January 2025

North Sydney Council management has settled on a recommended 87.05% cumulative rate increase over two years, despite the option receiving support from just 5% of those surveyed in a consultation. The proposed increase will be voted on by the ten elected councillors on Monday week and if approved, as seems likely, will then be sent for approval by the Independent Pricing and Regulatory Tribunal.

Council said it now backed ‘Option 2A; – the second highest rate rise of four options presented- which would see residential rates would rise by 45% in 2025/26 and 29% in 2026/27, with the minimum residential rate increasing to $1,200 in 2025/26. Business rates would see a similar increase, with a minimum of $1,400 in the first year. 

More than 4,400 residents visited the council’s ‘YourSay’ webpage, with just 17.6% successfully completing the online survey. The preferred option of Council, Option 2A, was only backed by 5% of those who completed the survey. Additionally, many respondents noted that they only selected an option because the survey originally required one, and the lack of a “None of the Above” option may have influenced responses and the poor completion rate. Council later amended the survey to allow progression without a selection. The only options available before that were a rise of 65%, 75%, 87% and 111%. Over 56% preferred the lowest option and 24% did not say, even that option wasn’t allowed for much of the survey duration. Neither were residents allowed to prefer the status quo, which is the standard “rate peg” increases around CPI levels of 3-4% a year.

The council report said feedback highlighted concerns over council’s financial management, particularly regarding the North Sydney Olympic Pool project. While some respondents acknowledged the need for a rate increase due to economic conditions and infrastructure demands, many cited dissatisfaction with spending priorities, cost-of-living pressures, and a perceived lack of transparency. Other recurring themes included calls for asset sales, increased financial assistance from state and federal governments, and greater accountability in council spending.

The council report says that the feedback was incorporated into the final proposal by way of a reduction in short-term spending on strategic priorities and a $10 million loan for the North Sydney Olympic Pool project to lessen the first-year rate impact. Infrastructure renewal funding will be limited to 80% in the first two years, excluding critical backlog projects.

If the report is accepted, council will make an application to IPART under Section 508A of the Local Government Act 1993 for the special rate variation, which, if approved, would be a permanent increase. The application will also seek to set new minimum rates under Section 548(3) of the Act, with residential rates increasing to $1,548 by 2026/27 and business rates rising to $1,806 over the same period.

Councillors will consider the report on Monday February 10. To date, seven of the ten councillors have supported the process and reasoning behind the rate increase.