A council and a community at odds: What's next for the now-approved Special Rate Variation in North Sydney?

An 87.5 percent rate increase has been endorsed by North Sydney Council following a marathon meeting in stifling conditions last night at which dozens of community members voiced their opinions.

Seven of North Sydney’s 10 councillors voted in favour of the controversial Special Rate Variation (SRV), which will see average rates rise by 50 percent in 2025-26, a further 25 per cent in 2026-27, and at the pegged rate in 2027-28.

Minimum residential rates will more than double from $715 a year to $1548 by mid-2026, and minimum business rates will rise from $715 to $1806.

One resident described it as a “shit sandwich” and said “someone needs to get the boot”.

😡 From audit to outrage: Why rates are soaring

The SRV was proposed after a June 2024 internal risk audit cast doubts over the ongoing financial viability of the council and was opened up to community consultation from November 2024 to January 2025.

The feedback indicated little appetite for savage rate increases, but council insisted the hike was vital for financial stability, pointing to infrastructure backlogs, budget deficits and the ongoing cost overruns on the North Sydney Olympic Pool.

🔈 Four hours and 40 speakers

Last night’s meeting ran to four hours and five minutes, with most of the time devoted to impassioned discussion of the SRV.

As 40 or so community members spoke ahead of the vote, Mayor Zoë Baker had to frequently call the public gallery to order and urge them to respect differing views.

Most spoke against the increase, echoing the concerns raised in the consultation process: the financial burden during a cost of living crisis, the council’s lack of transparency and accountability for its financial crisis, and doubts over the timing and justification.

The few who spoke in favour cited the services supplied by council, and the importance of long-term sustainability in local government.

The heated nature of proceedings was heightened by what some felt was a lack of air conditioning. Interruptions were made regarding the temperature, and information sought on whether windows could be opened (they couldn’t).

🗳️ The votes are in

The seven councillors who voted in favour of the rise were: Mayor Zoë Baker, Deputy Mayor Godfrey Santer, Nicole Antonini, MaryAnn Beregi, Chris Holding, Angus Hoy and Shannon Welch.

Liberal councillors Jessica Keen and Efi Carr, and Independent James Spenceley voted against the motion.

The council’s decision affirmed the outcome of the report to the council on the SRV authored by Luke Harvey, its Director of Corporate Services: “This report and recommendation will address Council’s poor financial position and build financial strength and sustainability to ensure the community can continue to be supported… or it will become unsustainable.”

📈 The final hurdle before rates rise

The council is expected to submit its application for the rate hike to the Independent Pricing and Regulatory Tribunal (IPART) in coming months. Councils in NSW must get approval from IPART in order to raise rates above the maximum peg set annually by the pricing regulator.

IPART will then publish the application - along with accompanying materials and supporting documentation - to its website in March, inviting public submissions. It will consider all submissions prior to making its final decision.

Councils must show IPART that rate rises above the norm are required and reasonable, and that the community is aware of the proposal. Its decision is expected mid-year.

Upon this final determination, the North Sydney Council will establish the rates and adopt an Operational Plan and Budget for 2025/2026.