It’s looking more likely than ever that residents of North Sydney Council will face a cumulative rate rise of almost 90 per cent.

The massive 87.05 per cent cumulative increase over two years has left locals and some elected representatives furious, especially given only 5 per cent of respondents to a recent community survey supported the plan.

The recommendation was revealed in a report to the Council in early February, and comes as the North Shore catchment area struggles to find a solution to the more than $50 million in loans it has accrued, in part to cover the costly, $100 million+ renovations of North Sydney Olympic Pool.

The Council insists the stiff increase is vital for financial stability, pointing to infrastructure backlogs, budget deficits, and the ongoing cost overruns on the North Sydney Olympic Pool.

In June 2024, an internal risk audit noted the need for a “complete strategic overhaul… to ensure the ongoing viability of the Council,” and in November, North Sydney Major Zoë Baker called the financial impact of the pool rebuild a “crisis.”

Mayor Baker consistently opposed the “design, scale, and cost” of the development before being elected in 2022. But that was then. Now, as North Sydney Mayor, she and the rest of the Council are looking for a solution.

🙋‍♂️🙋‍♀️🙋 Did anyone even want this?

Almost 800 residents completed the council’s survey on its YourSay website, with an additional 245 submissions via email and 22 by phone or in person. That’s over 1,000 people weighing in on the decision — and only 5 per cent of those backed the 87.05 per cent Option 2A, the plan that this latest report has put forward as a solution.

Survey respondents were given the choice between:

• Option 1: 50 per cent increase in 2025/26, followed by a 5 per cent increase in 26/27 and 27/28. A total cumulative increase of 65.38 per cent.

• Option 2A: 50 per cent increase in 2025/26, followed by a 25 per cent increase in 26/27, rate peg in 27/28. A total cumulative increase of 87.5 per cent.

• Option 2B: 75 per cent increase in 2025/26, followed by a rate peg in 26/27 and 27/28. A total cumulative increase of 75 per cent.

• Option 3: 60 per cent increase in 2025/26, followed by an increase of 20 per cent in 26/27 and a 10 per cent increase in 27/28. A total cumulative increase of 111.2 per cent.

The majority of respondents (56 per cent) voted for Option 1, which would have increased rates at a more moderate level.

The council report stated Option 1 was not recommended due to the Council’s obligations to “work towards long term strategic outcomes and objectives,” and recommended a “large increase” in the first year of the rate change in order to generate $25 million in additional revenue to ensure Council has the funds to honour its employee leave liabilities and repay bonds, deposits, and short-term payables.

The council report also says that many indicated they had only chosen Option 1 because the survey required them to make a selection. Three weeks into the consultation period the option to proceed without selecting an option was added.

🏊‍♂️ The pool that keeps getting deeper (and more expensive)

It’s no secret that much of North Sydney Council’s budget issues fall at the North Sydney Olympic Pool redevelopment. What was once intended to be a community renewal project, first initiated by then-North Sydney Mayor Jilly Gibson, has spiralled into a financial sinkhole.

In fact, the budget has blown out so much the council is planning on taking out an additional $10 million loan. The total estimate cost of redevelopment will now sit well above $90 million, with more than half of the funds borrowed.

Independent North Sydney MP Kylea Tink told the North Sydney Sun on Monday the proposed increase was “untenable” and blamed the increasingly costly Olympic pool development on the Morrison Coalition government.

“What was meant to be an upgrade of the bathrooms turned into a complete debacle thanks to the unnecessary intervention of the former Scott Morrison Liberal government,” she said. “That injection, a bid to retain the seat, meant the project had to be reshaped to accommodate the Liberal Party wishes, and as a result we have seen cost blowout after cost blowout and delay after delay.”

💰 What this could mean for your bills

For North Sydney Council residents, this is more than just a headline.

Under the proposed rate change, the minimum residential rate will jump from $715 to $1200 in Year 1, increasing again to $1548 in Year 2, more than doubling in just two years.

For businesses, costs get bigger. The average business rate will climb from $6724 to $10,247 in Year 1, increasing again to $13,219 in Year 2.

Member for Willoughby Tim James has actively rejected the planned rate increases, calling the move to almost double rates “disgraceful.”

“People are already straining to make ends meet and our small businesses are battling to stay afloat,” he said in a statement. “It is an outrageous proposal; it is out of touch and every councillor must reject it.”

✋ Is there any way to stop this?

The council will meet on February 10 to vote on whether it should submit its application for the rate hike to the Independent Pricing and Regulatory Tribunal (IPART).

Seven of the Council’s 10 councillors have supported the reasoning behind the rate increase.

New South Wales councils must get approval from IPART in order to raise rates above the peg set annually.

If approved, the increase will be permanent.

You can read the full report to Council here.