We are requesting people register to make a submission so we can understand their relationship to the Northern Beaches - ratepayer, resident, both or just a regular visitor to the area.

Registration is also required to ensure that where a duplicate submission is received it can easily be identified.

One of the goals of this project is to measure local community awareness and this data will help us in understanding if we achieve that.

Our Delivery Program includes information about our costs by service (p32-111) and also by type of expense (p133-136): Delivery Program 2024-2028

The audited financial statements also provide extensive information about our costs: 2023/24 Financial Statements

You can also find this information for prior years on our website: https://www.northernbeaches.nsw.gov.au/council/publications

In late January 2025, the elected Council will consider a report outlining the feedback received from the community, and a recommendation.

Council will decide whether to make an application to IPART for a Special Variation, and if so, the particular option that will be submitted.

IPART will make a determination by mid-2025 which will be reported back to Council for endorsement. The community will be informed of these decisions.

Any Special Variation would not take effect until 1 July 2025.

The proposed rate change would be permanent, remaining in Council’s rate base on an ongoing basis. From July 2028 onwards, rates would be expected to increase in line with the rate peg.

Council is a service-based organisation, with most of those services delivered by our employees. Our largest team, Children’s Services, employ over 123 people to operate 7 long day care centres, 2 preschools, vacation care at 3 locations and support family day care at up to 50 locations. This service is not funded by rates. Each year the Council participates in a remuneration and HR metrics assessment undertaken by an independent organisation and reported to the Audit, Risk and Improvement Committee. Employee costs are consistent with industry benchmarks and staff numbers have reduced since the amalgamation despite the Council now delivering new services like a new preschool in Balgowlah, operating the Manly Visitor Information Centre and the Aboriginal Heritage Office. Staffing levels are a constant consideration in Council's ongoing cost savings initiatives and ensuring we are delivering efficient services to our community. Council's preliminary Productivity Journey and Improvement Plan 2024 (available in the document library) outlines Council's forward planning of such savings initiatives and details the changes in staffing levels since the amalgamation.

The formation of Northern Beaches Council by amalgamating the three former Councils has resulted in significant savings. The NSW Government originally estimated $76.3m net present value (NPV) in savings prior to the merger. An analysis in 2019/20 estimated the new Council would achieve $161.6million (NPV) in savings over ten years. These savings have been reinvested in improvements to services and infrastructure.

Northern Beaches Council is one of the best in the state – recognised by receiving the Bluett Award in 2022, the most prestigious award a council in NSW can achieve.

Each of the former councils would be facing the same economic environment with costs outstripping rates and likely would be considering a special variation now too, if not before now.

For many years, the rate peg has been significantly lower than the inflation rate, putting increasing financial strain on all councils. Many have already received approval from IPART for special variations to raise their rates.

In November 2024, a NSW Parliamentary inquiry into local government funding found that “the financial challenges councils are experiencing cannot be overcome through fiscal discipline alone and are threatening the long-term sustainability of the sector.” The full report is available on the NSW Parliament’s website.

We support many of the inquiry’s recommendations, which aim to improve councils’ financial sustainability and flexibility. These include reviewing rate structures, enhancing rate-setting flexibility, addressing cost shifting and fee limits, revising grants and disaster recovery funding, and updating development contribution frameworks.

The Committee’s report is now with the NSW Government, who will respond to these recommendations within 3 months.

If you are having difficulty in paying your rates, you should contact Council as soon as possible to discuss the options available under Council’s Rates and Annual Charges Hardship Policy.

Concessions are also available to eligible pensioners.

Like many councils in NSW, Northern Beaches is facing growing financial pressure because of a widening gap between rates income and the escalating cost to maintain services like roads, footpaths, sportsfields, playgrounds and pools. 

Rates income increases each year by the limit (called the ‘rate peg’) set by the Independent Pricing and Regulatory Tribunal (IPART), and recently this has been less than half the inflation rate. This means rates income is now $24 million lower each year than it would have been if it had been keeping up with inflation. 

Additionally, ageing assets and the heavy cost of natural disasters, the COVID-19 pandemic, and ongoing cost shifting to Council from other tiers of Government is impacting Council’s long term financial sustainability.

No, changes in land value do not result in extra income for Council.

IPART sets the maximum increase councils can apply to their rates income each year – this is called the rate peg. Councils can also apply to IPART for a special variation to the rate peg.

Land values are used by Council to determine how the IPART-capped total rates income is distributed among ratepayers. Changes in land values may result in a redistribution of rates between individual ratepayers depending on how an individual ratepayers’ land valuation has changed compared to the land values of other ratepayers. If a property’s land value increases more than the Northern Beaches average, its share of rates may rise. On the other hand, if its increase is below the average, its rates may decrease.

The rate peg is the maximum percentage amount by which a council may increase its rates income for the year. The rate peg does not apply to stormwater or waste collection charges.

The NSW Independent Pricing and Regulatory Tribunal (IPART) set the rate peg. The rate peg for Northern Beaches Council in 2025/26 is 3.8%.

A council can apply to IPART for a ‘special variation’ to increase its rates income by more than the rate peg.

A special variation is an important means of providing additional funding to councils to support delivery of services and infrastructure to the community.

Northern Beaches Council is currently consulting the community on options for a special variation.

There are 4 clear options, and Council is asking the community for feedback. 

The first option is the current path we are on, with a rate increase from 1 July 2025 in line with the IPART’s annual rate peg of 3.8%. This option does not achieve financial sustainability or provide additional funding to address the community’s priorities and will mean cuts to services.

Three other options involve Council applying for an increase in rates (called a Special Variation) to generate funding for maintenance, infrastructure improvements, environmental programs and community services.

• Option 1 – Reduce services – Rate peg only (current path)

• Option 2 – Maintain services – Rate peg + 6% pa over 3 years

• Option 3 – Improve services – Rate peg + 8.3% pa over 2 years and 8.4% in year 3

• Option 4 – Increase services – Rate peg + 10% pa over 3 years

You can also use the Rates Calculator by entering your address to find out what it will mean for you.

IPART require us to tell you what the ‘cumulative increase’ of the special variation will be in both dollar terms and as a percentage.

The cumulative increase is the total increase in rates over the Special Variation period (3 years) compared to your rates today (the 2024/25 financial year). Rather than being an addition of the year-on-year increase, the cumulative increase is the difference between what your rates would be by the 3^rd year and what they are today (the 2024/25 financial year).

Yes

The Council has saved millions of dollars in efforts to reduce costs and improve productivity to ensure the Northern Beaches community has a cost efficient and effective Council.

While these initiatives have assisted in delivering a balanced budget to date, they are not enough to offset the impact of recent high inflation levels.

Savings include:

• $6m (at amalgamation and ongoing) in decreasing back office operating costs to support increases in some community facing services

• $7.4m saved over the past 5 years through reducing agency personnel costs, bank fees, insurance costs, fleet costs, employee costs and implementing a service review program in 2020 that has led to over 230 service improvements

• $0.5m in annual savings through upgrades to energy efficient sports field lighting and solar panels on Council buildings

• $2.52 million saved since 2021 through a renewable energy contract

• Reducing interest costs through paying down $81m in loans from the former councils.

The Northern Beaches is highly exposed to a raft of natural hazards including flooding, bushfires, landslips and coastal erosion. The recently released NSW State Disaster Mitigation Plan estimates that by 2060 the Northern Beaches will have the highest Total Average Annual Losses in the state, with estimated losses of close to $1 billion dollars per annum to the built environment alone. These predicted continual losses are a significant risk for our community and highlights the urgent imperative to significantly bolster investment and sustained action on prevention, mitigation and adaptation measures in a time where disaster risk is increasing. In the last 6 years the Northern Beaches experienced 7 natural disasters. Option 2 (and hence 3 and 4) provides funding to be able to better respond to the community when these issues arise.

Council continues to focus on cost savings through workplace reform, service reviews, property rationalisation, energy saving initiatives and productivity improvements, and these will continue alongside a special variation if implemented.

A focus on cost containment as well as looking at alternative revenue opportunities has been identified as part of Council’s preliminary improvement plan. This includes estimated savings of:

• $2.7 million per annum by rationalising discretionary services which will result in a moderate reduction in services

• $250,000 per annum in operating costs from Council’s vehicle fleet.

• $755,000 per annum in energy bills through implementing energy efficiency and solar opportunities at Council buildings and an Aquatic Centre.

• $2.5 million additional revenue (one off) over the next 3 years through the sale of property and land holdings considered surplus to need.  

In addition, other programs already in place will continue to focus on efficiencies and cost containment including:

• the annual service review program which involves comprehensive reviews of services to drive continuous improvement and meet community expectations.

• ongoing monitoring of the workforce to ensure the structure is cost effective and supports efficient infrastructure and service delivery. 

• efficiencies from a new enterprise resource platform (ERP) (a modern cloud-based technology platform) currently being implemented over a 3-year period to optimise processes and practices. 

• maintaining Council’s workers compensation self-insurance licence with estimated savings of $1.5 million per annum in premiums.  

These options have been considered, but Council does not believe these to be feasible or timely enough to address the significant deficit issue.

Loans will not address an ongoing funding gap between rates income and cost increases and with the extra interest and principal repayments do not represent a sustainable option.

The sale of assets will also not assist in addressing an ongoing funding gap. Much of the property owned by Council is either used for operational, community or recreation purposes and valued by the community for those purposes. While asset sales will always be considered on their merits and have the potential to assist Council’s financial position, asset sales are not sufficient to close the gap in funding required to keep current service levels and address the immediate financial sustainability of Council.

Council will continue to seek relevant government grants. However, government grants are not a stable form of income and cannot be relied upon for ongoing financial sustainability. Grants are usually received for and tied to a specific purpose and as such do not assist Council in closing the gap being costs and revenue. Many grants also tie Council to building new assets which creates an ongoing depreciation and maintenance cost.

Council would need to review current service levels and make some tough decisions which could involve less maintenance, reducing or cutting services to the community and may put at risk the timely renewal of assets which could result in the need to close facilities.