North Shore Community Newsletter 9 – Rates

Council is proposing a review of its rates. Why?

Managing Council’s finances is one of the most important challenges for Councillors.

Income from residential rates – how does North Sydney compare?

North Sydney Council:

• Applies the minimum rate to 74% of all residences.
• Finished 2017/18 with a tiny surplus of $ $2.2m (around 1.7% of revenue).

What happens if rates are “frozen”?

• Costs are relentlessly increasing (look at what’s happening with electricity prices).
• If rates are frozen there will be a deficit in 2019/20 – that will force cut backs (e.g. maintenance to areas such playgrounds, sporting fields and traffic management)`.

What’s needed to avoid a deficit?

• Budget forecasts point to a need for a 7% annual increase starting in 2019/20 if Council is to maintain the current level of services.

What does that mean in $ terms to our residential rate?

It means that by 2022/23, rates for 74% of residences will have increased by $3 per week – North Sydney’s rates will be then, as they are today, amazing value.

Importantly, we would have maintained the services and service levels that go to making North Sydney a great place in which to live.

What about spending on Capital Works?

In recent years:

• Reserves have been depleted.
• Expenditure on capital works has been running high (the Coal Loader accounted for $23m). In the present financial year (2018/19) capital expenditure has been reduced significantly.

Going forward, funding major projects (e.g. Blue and Miller Streets upgrade) will be a challenge – debt servicing costs make acquiring new debt very unattractive. It may become necessary to abandon some projects or sell assets to fund them.