Northern Beaches Council: Rates set for 25 per cent increase

A decision has been made on a Sydney council’s controversial plans to raise rates by almost 40 per cent. Here’s the latest.

Ratepayers protesting at the January meeting of Northern Beaches Council where it voted to pursue at 40pc rate rise over the next three years. Picture: Jim O’Rourke

Property owners on the northern beaches are set to be hit with a 25 per cent rates rise.

The Independent Pricing and Regulatory Tribunal (IPART) has given permission for Northern Beaches Council to jack up rates by more than 12 per cent next financial year.

If the council votes to levy the maximum increase, rates will also rise by a similar amount in 2026-27.

The council had controversially voted in January to request IPART to allow it to increase the rates by 39.6 per cent increase over three years.

An average ratepayer will be $168 out of pocket next financial year if the full rate rise is adopted.

The huge jump on the northern beaches comes as IPART rejected a bid by North Sydney Council to hike its rates by 87 per cent over two years.

Four other regional councils — Federation Council (near Albury), Gunnedah Shire Council, Shoalhaven City Council and Upper Hunter Shire Council — had their rate rise applications approved.

North Sydney Council wanted to lift rates to help pay for a $58m blowout in the cost of refurbishing the historic North Sydney Olympic Pool.

North Sydney Olympic pool is being refurbished. The budget has blown out by $58m. Picture: Renee Nowytarger

IPART rejected its rate hike application due to confusion among ratepayers about how much of the rate rise revenue would go towards the pool redevelopment, compared with the amount that would be put into financial reserves.

“The council did not clearly identify the need for, and purpose of, the proposed (rate variation) in … documents or its community consultation materials,” the IPART written decision stated.

North Sydney mayor Zoe Baker said her council, whcih could only increase rates by 4pc, would now have to slash $25m from its 2025/26 budget. It may mean a reduction in its services and programs and a sale of some assets, Cr Baker said.

Its infrastructure renewals and backlogs including North Sydney Oval, Stanton Library and sporting field upgrades were now unfunded.

Northern Beaches Council said it needed the extra income from the “special rate variation” (SV) to ensure its long term financial sustainability and address the backlog in infrastructure and maintenance.

It also wanted money to help manage an increasing number of natural disasters such as flooding, improve current services and enable the go-ahead for larger capital works, like the refurbishment of the Warringah Aquatic Centre.

Greg Barrett and Trevor Harrison protesting at outside the council meeting in January. Picture Thomas Lisson

If the new rate rises go ahead, the council will pocket an extra $50m.

But critics of the rate rise say the council already has money in the bank to balance its budget and that it can make cutbacks by reducing non-essential services such as community events, slashing the number of senior managers and selling council property not being used.

Independent councillor Vincent De Luca, who has been leading the community pushback against the rates hike, said that the council was refusing to make substantial internal savings.

Cr De Luca pointed out that it was still handing out $25.8m in salaries of 111 executives and spending millions of dollars on non-core council activities such as fireworks displays.

Stuart Gold, organiser of a ratepayer protest outside Northern Beaches Council Chambers in January. Picture: Jim O’Rourke

“The rate rise increase proposed could have been averted if my internal cost cutting motions had been approved by the Green and Teal councillors,” he said.

Cr De Luca called on his fellow councillors, including the eight who voted for the rate rise, to reject the measure when the council votes next month to adopt the IPART decision.

“You cannot sustain a bureaucracy which costs nearly $173m a year,” he said.

“These councillors have completely voted against the community’s wishes.”

Residents’ group Northern Beaches Peoples Voice, which has protested the rate hike, said it would continue to lobby councillors to reject the rise and called on them, instead, to focus on providing core services, such as repairing potholes.

Ratepayer and group founder Stuart Gold said councillors who “continue to persist with this cause cannot expect our votes at the next election”.

“They still do have time to reconsider their position,” Mr Gold said.

“Savings should be made through better council financial management.

“We think it should be refocused on traditional council business, particularly fixing potholes, and stop wasting money on items that are not core services.

“They don’t have a shortage of funds — they just don’t know how to spend it properly.”

In its written decision, IPART stated that the lower variation of 25.2 per cent compared to the 39.6 per cent proposed by Northern Beaches Council “will have a smaller impact on ratepayers”.

The IPART report found that “on balance” the council has not demonstrated a financial need for the 39.6 per cent rate rise.

“We consider the additional income under the approved 2-year SV to be sufficient for the council to achieve financial sustainability and still accrue surpluses to fund expansions in environmental and natural disaster risk reduction programs and long-term investments in major infrastructure renewals.

“It would also have a smaller impact on ratepayers in an economic environment where inflation has put considerable pressure on the cost of living,” the IPART report stated.

The council said on Friday that the decision provided the opportunity to “secure long term financial sustainability, maintain community infrastructure and support the continuation of quality services”.

Northern Beaches Council Mayor Sue Heins welcomed the IPART decision. Picture: Supplied

Mayor Sue Heins said the decision recognised the pressures on council’s budget.

“IPART has acknowledged the critical need to address the shortfall in Council’s budget caused by high inflation and increasing costs,” Ms Heins said.

“Council now has the ability to confidently move forward and continue to repair and renew roads, footpaths, rock pools, stormwater infrastructure and other community facilities.

“It allows for a correction in rates to better meet the real cost of maintaining our community assets which has increased significantly over many years alongside the financial impacts of multiple natural emergencies, cost shifting and other budget pressures.

“This has been a tough conversation to have with our community in this economic climate and we appreciate the feedback and input from our ratepayers.”

Originally published as Northern Beaches Council: Rates set for 25 per cent increase