FAQ: Special Rates Variation "Funding our Future"

What is the SRV?

The Special Rate Variation (SRV) is a proposal by the Northern Beaches Council to increase rates beyond the standard rate peg. It aims to address financial sustainability challenges, fund asset renewal, reduce infrastructure backlogs, and enhance services for the community.

Why is an SRV necessary?

Council's income has not kept pace with rising costs, high inflation, and significant external pressures like natural disasters and increased levies. The SRV will help bridge this gap and enable continued investment in essential services, maintenance, and infrastructure.

What are the proposed options for the SRV?

Option 1: Reduce Services - No SRV, leading to service cuts.
Option 2: Maintain Services - A 6% annual increase over 3 years to address basic asset maintenance.
Option 3: Improve Services - An 8.3%-8.4% annual increase for 3 years enhanced services and asset renewal.
Option 4: Increase Services - A 10% annual increase for 3 years for accelerated infrastructure projects and service expansions.

How does this impact ratepayers?

The proposed SRV increases are based on land values. For example, a median residential ratepayer could see an increase of $5-$6 per week depending on the option chosen.

What has the Council done to save money?

Northern Beaches Council has implemented various cost-saving measures, such as:

Reducing back-office costs by $6 million.
Lowering energy expenses through renewable energy contracts.
Repaying $81 million in loans.
Consolidating services post-amalgamation.

What will the funds from the SRV be used for?

Option 2 - Fund basic maintenance and renewals.
Option 3 - Enable larger projects, such as renewing the Warringah Aquatic Centre.
Option 4 - Accelerate delivery of additional community grants, footpaths, sports facilities, and lifeguard infrastructure.

What happens if the SRV is not approved?

If the SRV is not approved, Council will need to reduce services, delay essential maintenance, and may face escalating costs due to infrastructure deterioration.

How can I have my say?

Community engagement is ongoing. You can participate by:

Visiting the Your Say project page.
Using the online rates calculator.
Attending drop-in sessions or webinars.

When will a decision be made?

Council will review community feedback in January 2025 before submitting the application to IPART. The SRV, if approved, would take effect from July 2025.

Why isn't there an independent review of council finances?

Council has continuous independent and forensic reviews of its finances and programs through the independent ARIC committee and the Audit Office of NSW. Should we request a SRV, then IPART (The Independent Pricing and Regulatory Tribunal) will also perform an independent review.

Why are staff paid so much?

They are not. Northern beaches council staff packages are governed by the Local Government award program.

What services will be cut?

That's for council to decide when agreeing the next budget but items likely to be cut or reduced with no rate variation are:

The Warringah Aquatic Center
Some or all Ocean Pools
New Playgrounds, parks and recreation facilities
Wharves
Roads and Potholes
Library Services
Meals on Wheels
Transport services such as Hop Skip Jump
Community Center Maintenance

... and more....

What will happen if land is revalued?

Council divides the rates income decided by IPART on the unimproved land value set by the Auditor General. If land goes up, council's rates income does not. If your land is revalued, your rates may go down or up depending on your value vs everyone else's in the LGA.

Is this just the Northern Beaches Council?

No. In fact in March 2024, the NSW Legislative Council's Standing Committee on State Development initiated an inquiry into the ability of local governments to fund infrastructure and services. In December 2024, the committee released its report which you can find here. We suggest you read the Chair's foreword on pages vii to viii.