North Sydney Council Special Rate Variation (SRV)
Consultation closes Friday 10 January 2025
Council is seeking feedback on proposed changes to your rates. These changes are detailed in the revised LTFP and include:
Increase in total rates revenue
Increase of minimum rates
Consolidation of current levies into rates
Background
North Sydney Council is facing significant financial challenges and is currently in an unsustainable financial position. Despite efforts to improve financial management through organisational restructuring and other improvement initiatives, the increased costs of the North Sydney Olympic Pool redevelopment, reductions in other sources of revenue, and rising infrastructure backlogs require immediate response to ensure long-term financial sustainability.
These challenges are compounded by increased service delivery costs, ageing infrastructure, and the needs of a growing population. Without intervention, the funding gap will continue to widen, impacting Council’s ability to maintain services and invest in new and renewed essential infrastructure.
A path to ensure long-term financial sustainability
To address these issues, Council has developed a draft Long-Term Financial Plan (LTFP), which includes a proposed Special Rate Variation (SRV). The SRV will strengthen Council’s financial position, reducing deficits, reducing debt and providing the necessary resources to deliver services and infrastructure for the community, ensuring a positive legacy for future generations.
Council has also considered the feedback provided by the community during the ‘Have your say on North Sydney’s next ten years’ consultation in May and June 2024 which, combined with key research, has shaped the draft Informing Strategies. These strategies will guide the new Community Strategic Plan, focusing on enhancing quality of life, strengthening community, and delivering responsive services and infrastructure that meet the evolving needs of our population. Central to the realisation of these strategies is Council's long-term financial sustainability. Please refer to Your Say North Sydney for more information on the draft Informing Strategies.
As detailed below Council is now seeking your feedback on the revised LTFP. (including the SRV)
1. Increase in total rates revenue (Special Rate Variation)
Council is consulting on four SRV options, which present different levels of financial strength and sustainability for North Sydney. Options 1, 2 and 3 are different in size and reflect a different level of benefit. Options 2a and 2b provide the same benefits but have different implementation paths.
2. Increase of minimum rates
North Sydney has one of the lowest minimum rates in metropolitan Sydney. Over 77% of residents currently pay the minimum rate and this does not support the level and variety of Council services currently offered to each household. To improve equity and ensure revenue keeps pace with growing unit developments, Council proposes increasing minimum rates in 2025-26 to:
$1,300 for residential properties
$1,400 for businesses
After 2024-25, minimum rates will increase by the approved rate path, which may either be one of the proposed SRV options or the rate peg.
For comparison purposes, it is important to note that in addition to the current minimum rate of $715 in 2024/25, residential ratepayers currently pay an average of $129.34 in infrastructure, environmental and main street levies. These special levies will not be charged in addition to the minimum rate under the new SRV proposal. This proposed change is discussed below.
3. Consolidation of current levies into rates
Council has reviewed its rating structure and proposes the removal of the infrastructure, environmental and main street levies mentioned above, which are currently paid separately to rates. The income from these levies would be incorporated into the ordinary rate charged. This would mean that total permissible rates income is raised entirely through ordinary rates, making the Council’s rating structure simpler and more equitable. Residents are paying approximately 90% of all the levies, whereas they pay 60% of total ordinary rates and receive approximately 60% of the benefits from Council services. These changes mean that residents would pay 60% of the total permissible income and businesses pay 40%. The averages in the table above show this change.
Have your say
Council is actively seeking feedback on the following proposed changes that are detailed in the revised LTFP including:
Increase in total rates revenue through an SRV
Increase of minimum rates
Consolidation of current levies into rates
Feedback is also sought on updates to the current 2022-26 Delivery Program and revised Asset Management Strategy.
Learn more through the reports in the document library, FAQs and factsheet.
Provide your feedback by:
completing the submission form below, or
emailing or writing to us. Please include 'Proposal for a Special Variation to rates' in the subject line of all email or written feedback.
All submissions in their entirety are made publicly available in the Community Engagement Report. Personal identifying information, and content which is discriminatory, hateful or which may defame, offend, insult, humiliate or intimidate will be redacted.
