The Independent Pricing and Regulatory Tribunal (IPART) today approved a Special Variation to Northern Beaches Council rates, providing the opportunity to secure long term financial sustainability, maintain community infrastructure and support the continuation of quality services.
IPART approved the first two years of Northern Beaches Council’s three-year proposal – giving permission for an increase of 12.1% in 2025/26 and 11.7% in 2026/27 (including the rate peg).
That means next financial year the typical ratepayer would pay an additional $42 per quarter or $168 per year.
Funding in the first two years will allow Council to invest in the maintenance of core infrastructure which has fallen behind in recent years due to rising construction costs. Currently Council has a critical shortfall of $25.5 million every year to maintain assets.
The third year rate increase was to be allocated to investment in significant infrastructure projects. Under new NSW Government changes to the IPART Special Variation process, councils will be required to apply for specific infrastructure project funding separately in the future.
Mayor Sue Heins said the IPART decision recognised the considerable 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," Mayor Heins said.
“The approval gives us the opportunity to achieve what we set out to do – maintain core infrastructure and secure financial stability.
“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.
"We can get on with the job of delivering for our community as we continue to focus on efficiencies and delivering value for money to ratepayers."
The removal of the proposed third year of rate increase will likely result in some larger renewal projects like the Warringah Aquatic Centre or Manly Lifesaving Club redevelopments not proceeding without significant external funding or a separate IPART application.
In approving the Council submission, IPART recognised Council for savings made since amalgamation and its plan for ongoing savings (past productivity improvement and cost containment initiatives have resulted in savings of approximately $29.5 million per year in financial benefits, future initiatives have an estimated annual net benefit of $6 million), and the extensive community consultation process that was undertaken.
The elected Council will review the IPART decision along with the draft Delivery Program and 2025/26 Budget at the June Council meeting.
Read the IPART report here.
Contact: media@northernbeaches.nsw.gov.au or 0481 907 545.