There is an old saying, ‘don't let the facts get in the way of good story’. So, in light of some misinformation and sensational reporting this week, here are the facts.  

What decision did the Council make this week?  

Council voted to apply to the Independent Pricing and Regulatory Tribunal (IPART) for a special variation to increase rates income by 8.3% in addition to the rate peg each year for 2 years and 8.4% in year 3. 

The increase in rates from what ratepayers pay today to what will be paid in 3 years’ time (i.e. the cumulative total increase) is 29% above the rate peg, and 39.6% including the rate peg. The increases apply to the rates component of a rates notice only – not to waste and stormwater charges.  This proposed increase was Option 3 of the proposals.  

If approved, it will equate to an increase for the average residential ratepayer of $2.70 per week next year, $3.12 per week in 2026/27 and $3.60 per week in 2027/28 on top of the usual rate peg increase. For business rate payers, it means an increase $6.47 per week next year, $7.47 per week in 2026/27 and $8.63 per week in 2027/28 on top of the usual rate peg increase. 

What does this mean for me? 

You can see exactly what this rise means for you by visiting the project page and entering your address into the online Rates Calculator. 

Please note your rates notice may include 3 components – rates, a waste charge and a stormwater charge. The proposed increase only applies to the rates component. 

Why is this special rate variation being considered? 

The impacts of rising inflation on construction and materials and day-to-day Council operations, loss of income from the pandemic and the massive cost shifting from other tiers of government are threatening our long-term financial sustainability.  

The increases to rates applied under the NSW Government’s rate peg system (which is similar to a CPI for councils) have not kept up with the increasing external costs Council faces and this gap is increasing every year.  

Without a Special Variation Council would need to cut the services the community reasonably expect us to deliver.  

If approved, what will the additional funds be used for?   

Additional funds will allow Council to continue to invest in quality services for our community, which will be used to:  

• improve existing services 
• invest in natural risk reduction programs such as stormwater works, bushfire protection and beach nourishment 
• enhance environmental projects including bushland and invasive species management. 
• deliver larger renewal projects (e.g. renewal of the Warringah Aquatic Centre) 
• address the asset renewal and maintenance gap 
• improve roads and expand footpath programs 
• establish a fund for natural disaster recovery. 

What has Council done to cut costs? 

Council has endorsed a comprehensive improvement plan to find millions of dollars in ongoing and new savings which will also form part of the IPART application. 

These savings are on top of the $29.5m per year saved since amalgamation, which includes:  

• $6 million in back office operating costs 
• $7.4 million in agency personnel, insurance, fleet and employee costs 
• $2.5 million annual savings through a renewable energy contract 
• reduced interest by paying down $81 million in loans inherited from former councils. 

What if I can’t afford my rates? 

If you are experiencing financial hardship, we encourage you to apply for relief. Please contact us on 1300 434 434 and we will talk you through your individual situation and assist. 

Please also visit this page for more information on support services available. 

Why does Council spend nearly 40% of its budget on staff salaries? 

Council is a half-billion-dollar service organisation, the 4th largest in NSW, with responsibility for $5.6 billion in assets, providing services to almost 270,000 residents.  

These services require staff to deliver them.  

As a service organisation, a reduction in staff equates to a reduction in services. If there is less staff to repair the rockpools, run the libraries, clean the public toilets, fix the potholes, mow the sports fields, and so on, then the service level drops.  

Our employee costs and our organisational structure are consistent with industry benchmarks and commensurate with other local government organisations of a similar size.  

Some reporting of senior staff senior positions this week has been inaccurate, despite Council providing the correct information to the journalists concerned.  

How many executives does Council have?  

Northern Beaches has one CEO, 5 Directors and 22 Executive Managers covering 5 large directorates - Environment, Planning, Transport & Assets, Community and Corporate Services. This includes 24 business units and 134 teams, managing a combined workforce of 1,800 staff.   

When would a rate rise start?  

If the Special Variation to rates is approved by IPART and endorsed by the elected Council in setting the annual budget, it will be applied to rates from the 2025/26 financial year and phased in over 3 years.  

Is the rate system flawed?  

The NSW Government’s rate peg system is clearly not working. Over the last 9 years more than half of NSW Councils - 57 others – have had IPART approve Special Variations and 5 other councils are considering them this year.   

A recent NSW parliamentary inquiry agreed the way local government is funded is not sustainable and included recommendations for more government funding to be allocated to councils to cover increasing costs. This would ensure Council and our community didn’t have to be put through such a challenging process to protect the financial sustainability of our area.  

How did we consider the community feedback? 

Thank you to the community for taking the time over the past 3 months to understand these challenges and share with us what is important to you. 

Council considered feedback from a range of sources including an opt-in survey that gave insight into how much importance the community put on services and their willingness to pay for them. There was also an independent representative survey that provided data. This was balanced with the budget forecasts in the Long-Term Financial Plan and information in the Asset Management Plans. The survey was not a popularity competition, rather it gave an insight into community sentiment. It’s a fact, no one wants to pay more in taxes or rates, but the community values the services they have come to expect from Council.