Proposed SRV and Minimum Rate Increase

The North Sydney Council Resourcing Strategy 2018-2028 has identified that Council will need additional income to fund essential services and infrastructure. The Strategy includes three financial options to generate rates income:

  • Scenario 1 - by the annual rate peg (State Government-allowed increase)

  • Scenario 2 - by 5.5% per annum for 5 years, inclusive of the annual rate peg

  • Scenario 3 - by 7% per annum for 5 years, inclusive of the annual rate peg

Council has adopted Scenario 3 as its 'preferred' option. Council has resolved 'intent to apply' for a SRV of 7% per annum for five years effective from 1 July 2019. Before making a SRV application to the Independent Pricing and Regulatory Tribunal (IPART) Council has resolved to seek feedback as to your preferred option and willingness to pay.

The following table explains the three options including the additional funding available under Scenarios 2 and 3 and the expenditure reductions required under Scenario 1:

Scenario 1
increase by annual rate peg
Scenario 2
5.5% p.a. for 5 years inclusive of rate peg
Scenario 3
7% p.a. for 5 years inclusive of rate peg
  • need to reduce expenditure by $6.7m over 5 years to achieve a balanced budget (approx. $1.35m p.a.)
  • further reductions or revenue increase required beyond 2023/24
  • to achieve this cost reductions are required to discretionary services. This is where we could make cost reductions/reduce services:
    verge mowing and street cleaning frequency reductions, reduced graffiti removal, reduced tree planting, less community events, reduced grants and subsidies to community centres and groups, less economic development/ support for local businesses, discontinuation of the precinct system - refer to Fact Sheet No.1 for full details
  • maintains existing service level
  • plus provides $15.2m total additional funds over 5 years
  • the proposed allocation of this funding: $9.3m for asset renewals, $3m for Neutral Bay and Cremorne village upgrades, $2m for Bradfield Park South Masterplan implementation, $700,000 for playground upgrades at Sirius Street Reserve, Grasmere Children's Park and Merrett Playground; and $180,000 for Badangi reserve walking trail upgrade - refer to Fact Sheet No.2 for full details
  • maintains existing service levels
  • plus provides $27.06m total additional funds over 5 years
  • the proposed allocation of this funding: all Scenario 2 plus, an additional $5m for asset renewals, $4.8m for St Leonards Park Masterplan implementation, $1m for Kirribilli and McMahons Point village upgrades, $750,000 for sportsfield reconstruction/drainage at Anderson Park an Primrose Park, $300,000 for walking trail upgrades in Primrose Park, Brightmore Reserve and Gore Cove to Smoothey Park - refer to Fact Sheet No.3 for full details


PROPOSED IMPACT ON RATEPAYERS

To give ratepayers an indication of how you will be impacted by the proposal to raise rates above the annual rate peg, we have published an Information Sheet (refer to the Document Library) which includes a table comparing the three financial scenarios, showing indicative rate increases by land value ranges and the average cumulative impact over the 5 year period. Note: property values are determined by the NSW Valuer General. Your property's land value is listed on your rates notice - if you do not know your property's land value phone 9936 8100.

This consultation links to Council's amended IPR plans currently on exhibition - refer here for more information

SUBMISSIONS
We value your opinion, please have your say by making a submission by 16 January 2019. Refer to Council's Information Sheet and other resources available from the 'Document Library' before making a submission. Submissions can be made via the online form (see below) or send to:

Email - yoursay@northsydney.nsw.gov.au

Post - North Sydney Council, PO Box 12, North Sydney NSW 2059

INFORMATION SESSIONS
Council is hosting three Information Sessions. We are holding each session in a different Ward. You can attend any session - the presentation given by staff at each session will be the same. Q&A session to follow the presentation. Venue capacity is limited. Register to attend at https://www.trybooking.com/ZDLK

  • Wednesday 7 November 2018, 6pm to 8pm at the North Sydney Leagues Club, Cammeray

  • Monday 12 November 2018, 6pm to 8pm at Hutley Hall, North Sydney

  • Thursday 22 November 2018, 6pm to 8pm at Neutral Bay Club, Neutral Bay

DROP-IN INFORMATION KIOSKS
We are also holding eight Drop-In Kiosks on different dates/locations across the local government area. The kiosks provide opportunity to discuss the proposal with Council staff.

  • Sunday 11 November 2018, from 9am to 3pm, at Kirribilli Art Design & Fashion Markets

  • Wednesday 14 November 2018 from 11am to 2pm in Brett Whiteley Place, North Sydney

  • Saturday 17 November 2018 from 8am to 12 Noon, at the Ros Crichton Pavilion during the Northside Produce Markets

  • Wednesday 21 November 2018 from 10am to 2pm in Grosvenor Lane Carpark, Neutral Bay

  • Sunday 25 November 2018, from 9am to 3pm, at the Coal Loader Artisans Market

  • Saturday 1 December 2018 from 8am to 12 Noon, at the Ros Crichton Pavilion during the Northside Produce Markets

  • Tuesday 4 December 2018 from 10am to 1pm, at the Crows Nest Centre

  • Saturday 12 January 2019 from 8am to 12 Noon, Cammeray Village (between Miller St and car park)

PHONE SURVEY
Council has commissioned a random phone survey of both residential and business ratepayers; sample size is 400 residents and 200 businesses. If you receive a call from Jetty Research please take the time to complete the survey. Recruited participants will be sent an information pack ahead of being asked to complete the survey.

The North Sydney Council Resourcing Strategy 2018-2028 has identified that Council will need additional income to fund essential services and infrastructure. The Strategy includes three financial options to generate rates income:

  • Scenario 1 - by the annual rate peg (State Government-allowed increase)

  • Scenario 2 - by 5.5% per annum for 5 years, inclusive of the annual rate peg

  • Scenario 3 - by 7% per annum for 5 years, inclusive of the annual rate peg

Council has adopted Scenario 3 as its 'preferred' option. Council has resolved 'intent to apply' for a SRV of 7% per annum for five years effective from 1 July 2019. Before making a SRV application to the Independent Pricing and Regulatory Tribunal (IPART) Council has resolved to seek feedback as to your preferred option and willingness to pay.

The following table explains the three options including the additional funding available under Scenarios 2 and 3 and the expenditure reductions required under Scenario 1:

Scenario 1
increase by annual rate peg
Scenario 2
5.5% p.a. for 5 years inclusive of rate peg
Scenario 3
7% p.a. for 5 years inclusive of rate peg
  • need to reduce expenditure by $6.7m over 5 years to achieve a balanced budget (approx. $1.35m p.a.)
  • further reductions or revenue increase required beyond 2023/24
  • to achieve this cost reductions are required to discretionary services. This is where we could make cost reductions/reduce services:
    verge mowing and street cleaning frequency reductions, reduced graffiti removal, reduced tree planting, less community events, reduced grants and subsidies to community centres and groups, less economic development/ support for local businesses, discontinuation of the precinct system - refer to Fact Sheet No.1 for full details
  • maintains existing service level
  • plus provides $15.2m total additional funds over 5 years
  • the proposed allocation of this funding: $9.3m for asset renewals, $3m for Neutral Bay and Cremorne village upgrades, $2m for Bradfield Park South Masterplan implementation, $700,000 for playground upgrades at Sirius Street Reserve, Grasmere Children's Park and Merrett Playground; and $180,000 for Badangi reserve walking trail upgrade - refer to Fact Sheet No.2 for full details
  • maintains existing service levels
  • plus provides $27.06m total additional funds over 5 years
  • the proposed allocation of this funding: all Scenario 2 plus, an additional $5m for asset renewals, $4.8m for St Leonards Park Masterplan implementation, $1m for Kirribilli and McMahons Point village upgrades, $750,000 for sportsfield reconstruction/drainage at Anderson Park an Primrose Park, $300,000 for walking trail upgrades in Primrose Park, Brightmore Reserve and Gore Cove to Smoothey Park - refer to Fact Sheet No.3 for full details


PROPOSED IMPACT ON RATEPAYERS

To give ratepayers an indication of how you will be impacted by the proposal to raise rates above the annual rate peg, we have published an Information Sheet (refer to the Document Library) which includes a table comparing the three financial scenarios, showing indicative rate increases by land value ranges and the average cumulative impact over the 5 year period. Note: property values are determined by the NSW Valuer General. Your property's land value is listed on your rates notice - if you do not know your property's land value phone 9936 8100.

This consultation links to Council's amended IPR plans currently on exhibition - refer here for more information

SUBMISSIONS
We value your opinion, please have your say by making a submission by 16 January 2019. Refer to Council's Information Sheet and other resources available from the 'Document Library' before making a submission. Submissions can be made via the online form (see below) or send to:

Email - yoursay@northsydney.nsw.gov.au

Post - North Sydney Council, PO Box 12, North Sydney NSW 2059

INFORMATION SESSIONS
Council is hosting three Information Sessions. We are holding each session in a different Ward. You can attend any session - the presentation given by staff at each session will be the same. Q&A session to follow the presentation. Venue capacity is limited. Register to attend at https://www.trybooking.com/ZDLK

  • Wednesday 7 November 2018, 6pm to 8pm at the North Sydney Leagues Club, Cammeray

  • Monday 12 November 2018, 6pm to 8pm at Hutley Hall, North Sydney

  • Thursday 22 November 2018, 6pm to 8pm at Neutral Bay Club, Neutral Bay

DROP-IN INFORMATION KIOSKS
We are also holding eight Drop-In Kiosks on different dates/locations across the local government area. The kiosks provide opportunity to discuss the proposal with Council staff.

  • Sunday 11 November 2018, from 9am to 3pm, at Kirribilli Art Design & Fashion Markets

  • Wednesday 14 November 2018 from 11am to 2pm in Brett Whiteley Place, North Sydney

  • Saturday 17 November 2018 from 8am to 12 Noon, at the Ros Crichton Pavilion during the Northside Produce Markets

  • Wednesday 21 November 2018 from 10am to 2pm in Grosvenor Lane Carpark, Neutral Bay

  • Sunday 25 November 2018, from 9am to 3pm, at the Coal Loader Artisans Market

  • Saturday 1 December 2018 from 8am to 12 Noon, at the Ros Crichton Pavilion during the Northside Produce Markets

  • Tuesday 4 December 2018 from 10am to 1pm, at the Crows Nest Centre

  • Saturday 12 January 2019 from 8am to 12 Noon, Cammeray Village (between Miller St and car park)

PHONE SURVEY
Council has commissioned a random phone survey of both residential and business ratepayers; sample size is 400 residents and 200 businesses. If you receive a call from Jetty Research please take the time to complete the survey. Recruited participants will be sent an information pack ahead of being asked to complete the survey.

Submission Form - Proposed SRV and Minimum Rate Increase

Thank you for making a submission regarding the proposed special rate variation (SRV) and minimum rate increase.

Privacy Statement: Any personal data captured in this submission will be stored by Council in accordance with its Privacy Statement, Privacy Management Plan, Government Information (Public Access) Act 2009 and the Privacy and Personal Information and Protection Act 1998. Personal information captured will be used only for participation in this project and will not be disclosed to any third party without your written consent.

Details of individual submissions may be made public in accordance with Part 3, Division 1, Clause 18(g) of the Government Information (Public Access) Act 2009. Personal information will only be made available by application in accordance with Part 2, Division 2 - Public interest considerations - of the Government Information (Public Access) Act 2009.


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