North Sydney Council limbers up for another crack at a serious rate hike

North Sydney Council will once again seek a special rate hike, this time asking for an increase of 52 percent over a period of three years.

What happened: A report written by council CEO Therese Cole, has recommended council rates be increased by 23 percent, 14 percent and 8 percent over the next three financial years. When compounded, this would equate to a 52 percent rise from the current rates.

Councillors will convene next Monday to debate whether to pursue this increase.

Here we go again: Last year, North Sydney Council sought an increase of 87 percent, which outraged sections of the community and was rejected by the Independent Pricing and Regulatory Tribunal (IPART), which can approve rate increases above annual caps set for each LGA.  

Why is it happening: The CEO’s report argues the rate hike is necessary if council is to maintain current service levels. It claims that without the increased cash flow, the council will remain in an operating deficit. It also raises concerns around funding for infrastructure.

• “Funding for infrastructure renewal is projected to meet only 69 per cent of the minimum required investment, leading to further deterioration of community assets”.

• “Council lacks the financial capacity to invest in new infrastructure”.

How much: North Sydney residents currently pay some of the lowest council rates in the Greater Sydney region. North Sydney Council put the current average residential rate at $1,076.

The most recent comparative data of average rates from the Office of Local Government is for 2022/23. 

In that financial year the average residential rate in North Sydney was $982. In the same year the average rate in the Ku-ring-gai LGA was $1,502, Northern Beaches $1,559, Hornsby Shire $1,277 and Lane Cove $1,272. 

Based on the current average rate in North Sydney, if IPART approved a 52 percent rise over three years in the North Sydney LGA, average rates would rise from $1,076 a year to about $1,635.

In the last financial year, North Sydney Council collected $55 million in business and residential rates. Not considering factors such as population growth, under the proposed rate rise council would take in around $84 million annually by 2029.