Let’s Build a Stronger Future Together

Council manages $1.6 billion worth of assets and infrastructure for the local government area. These assets connect our community via roads, bicycle paths and walkways; promote active and healthy lifestyles through our parks, open spaces and sportsfields; and help protect our environment through critical systems like stormwater and seawalls.

Maintenance refers to the ongoing activities required to keep an asset - such as a footpath, park bench, or streetlight - in good working condition. These tasks help ensure that the asset continues to function safely and effectively for as long as originally intended. Maintenance can include routine or minor works such as patching cracks in a footpath, repairing damage, or addressing wear and tear before it becomes a bigger issue.

Renewal involves larger-scale works that restore an asset - like a footpath or public facility - to the condition it was in when first built. These activities go beyond simple repairs and are carried out when the asset has deteriorated to the point where maintenance is no longer enough. Examples include replacing or reconstructing a footpath to bring it back to its original standard and performance level.

An upgrade involves improving an existing asset to provide a higher level of service or meet new standards. This could mean making the asset more functional, accessible, or visually appealing. For example, upgrading a footpath might include widening it to accommodate more users or replacing it with a different surface material in line with the Public Domain Style Manual.

New infrastructure refers to the construction of entirely new assets that provide a service where none previously existed. These projects aim to meet growing community needs or improve access and connectivity. For example, building a new footpath in an area that didn’t have one before is considered new infrastructure.

An infrastructure backlog refers to the list of renewal works that are needed but have not yet been completed - usually due to limited funding, resources, or time. These are works that are necessary to keep community assets (like roads, footpaths, or public facilities) in a safe and functional condition but have been delayed or postponed.

North Sydney Council’s infrastructure backlog of $146 million (as at 30 June 2024) is assessed based upon renewing infrastructure in poor or very poor condition. 

If renewals are not undertaken, the quality of infrastructure will continue to decline.  Council will be required to spend increasing amounts on temporary repairs, which is not an efficient way to allocate ratepayers’ funds.

Backlog costs will continue to increase, leaving a liability for future generations.  Alternatively, decisions to close or decommission assets may be required.

Over the past two years, Council has reduced and deferred asset renewal budgets and postponed new and upgrade projects due to its financial situation. In 2025-26 a further $12.5 million was cut from the infrastructure renewal budget. 

The challenge with infrastructure backlogs is that they can remain unnoticed until there is a failure or until someone takes particular interest in an asset they regularly use, like a footpath.

Often assets need maintenance and renewals that can’t be seen, for example, structural issues in internal walls. Or are simply not noticed if you don’t use that particular asset regularly, e.g. leaks in the library and council chambers.

Council undertakes regular inspections to assess infrastructure condition and prioritise limited funds.

Our population is increasing, with more density and the public domain will be central to ensuring quality of life.  In addition, the way people move around, recreate, care for the environment, work and socialise continues to change and evolve.  To proactively respond and anticipate community needs, consideration must be given to how we can make best use of our limited public infrastructure.

When Council is renewing infrastructure, it makes sense to consider opportunities to respond to these changes through infrastructure upgrades.

For example, North Sydney has a deficit of open space, and therefore intensification of use in those spaces we do have is increasing.  The surface at St Leonards Park often requires remediation due to this, resulting in increased reactive maintenance and part closure of surfaces. By improving drainage, we can reduce the need for this reactive maintenance and cater for the increased use.  Similar examples can be given for sports fields and library services.

Council has reviewed its asset groups to work out if they are in very good, good, fair, poor or very poor condition. The condition of Council’s assets was assessed using guidelines and practice notes produced by the Institute of Public Works Engineering Australasia.

The condition gradings used range from condition 1 (very good) to condition 5 (very poor). As of 30 June 2024, Council’s Asset Management Plans identify $146 million of infrastructure in poor condition (Grade 4) and very poor condition (Grade 5).

Within Council's asset management system, infrastructure assets are assessed based upon components, e.g. sections of road, or parts of buildings.  

Council’s Asset Management Strategy aims to ensure services are delivered cost-effectively through the full lifecycle of assets—planning, acquisition, maintenance, operation and disposal. It focuses on asset performance and compliance, maintenance standards and community expectations to optimise service levels and expenditure over time.

Council currently delivers 74 services and over 200 service activities through its budget of $162 million.  Services are supported by infrastructure.

Service delivery is shaped by local needs, funding availability, and community feedback. 

Some of the services that Council delivers include: Customer Services / Application and Permit Processing / Bushland Management / Youth Services / The Coal Loader Centre for Sustainability / Community Facilities / Development Assessment and Determination / Public Health Inspections / Environment Pollution Regulation / Building and Development Compliance / Ranger Patrols / Companion Animal Registration / Managing unattended vehicles / Land Use Planning / Asset Monitoring and Reporting / North Sydney Oval / Residential and Public Place Waste and Recycling / Graffiti Removal / Street Cleaning / Tree Management / Drainage / Parks and Gardens maintenance / Construction Traffic Management / Parking Stations / Road Safety Programs / Library Services / Heritage Preservation / Community Events and  Public Art etc

In 2025/26 Council estimates it will receive revenue from the following sources to pay for services and infrastructure:

• Rates 40%
• Annual Charges 11%
• User Fees and Charges 24%
• Other revenue/income 10%
• Grants and contributions 11%
• Interest income 2%

Councils across NSW are responsible for the provision of services to meet the needs and priorities of their local community. This includes services such as waste collection, recycling, water supply, community centres and support programs, libraries etc. Services vary between councils depending on a council’s location, size, demographics, resources, growth patterns and community preferences.

Providing services and infrastructure for an entire community is a complex task, because people use and value these services in different ways. What one person sees as essential, another may not use at all. Unlike shopping for individual products, community members don’t get to pick and choose which services they want to pay for.

Instead, services and infrastructure are delivered as a shared package - often referred to as a "basket of goods" - designed to meet the overall needs of the community.

This current community consultation seeks to understand which services, infrastructure and assets are important to residents and businesses in the North Sydney local government area. Council is asking them to tell us what they are willing to pay for the services and infrastructure Council provides. Should Council spend more, the same, or less on asset maintenance and renewal? Should Council spend more, the same, or less on its different services? 

It’s then the role of the elected Council to decide what goes into ‘the basket’. They do this by considering a broad understanding of community priorities, supported by research, engagement, and expert technical advice.

North Sydney Council provides services for 72,900 residents, 89% of whom live in medium and high-density housing. It also supports over 15,000 local businesses, 16 schools, 2 universities and a working population of 80,700.

With most services already at capacity, Council needs to prepare now for the 15,220 estimated additional residents incoming to the LGA by 2035.

Council’s financial challenges are multi-factored, including long-term declines in revenue, underinvestment in infrastructure, and a high proportion of residents paying minimum rates, which limits income. Historically, residential rates have remained low, providing under 44% of Councils operating revenue, due to reliance on other sources of income. This is no longer sustainable.

Additionally, reliance on non-rate revenue sources - such as parking fees and commercial rents - has made Council vulnerable to economic shocks, particularly following the COVID-19 pandemic. These factors have reduced reserves and constrained infrastructure renewal capacity.

The delayed North Sydney Olympic Pool project has also impacted Council’s liquidity but is not the sole contributor to Council’s current financial position.

To ensure management of liquidity levels, as part of its 2025-2026 Operational Plan Council has committed to:

1) Reducing its strategical operational funding by deferring or cancelling several strategic initiatives.

2) Implementing a targeted financial repair program which aims to identify $6 million in operational savings during 2025-2026.

3) Reducing planned infrastructure renewal expenditure by $12.5 million.

4) Reviewing Council’s properties (both income-generating and community-use assets) including the consideration of strategic divestment opportunities.

5) Apply to the Office of Local Government for pre-approval to borrow from externally restricted reserves as a contingency measure.

6) Consider the use of additional external loan funding as part of its broader financial modelling.

7) Undertake comprehensive community engagement to inform new financial modelling which will develop a clear and long-term strategy to improve Council’s financial strength and resilience.

Full details of these activities are included in the Delivery Program 2025-2029 and  Operational Plan 2025-2026.

The following breakdown shows how Council plans to allocate spending in the 2025/26 financial year, helping you understand where your money goes.

• Column A: For every $100 of expenditure, Council estimates it will spend the amounts shown in the table below. 

• Column B: Using the amounts in Column A, this column estimates your annual contribution to each service area based on the average residential rate of $1,079. (Figures are calculated using a simple straight-line method and are indicative only.)

In 2025/26 Council estimates it will receive revenue from the following sources to pay for services and infrastructure:

• Rates 40%
• Annual Charges 11%
• User Fees and Charges 24%
• Other revenue/income 10%
• Grants and contributions 11%
• Interest income 2%

Micromex Research and Consulting is a 100% Australian-owned company based on the Central Coast of NSW. Established in 1986, it provides market, community, and stakeholder research services using its in-house call centre and national field team.

Council has engaged Micromex Research to ensure the survey results are independent, impartial and professionally conducted. This is particularly important as Council reviews its Long Term Financial Plan and considers options for financial repair.

The insights gathered through this independent survey will help inform Council’s decisions, including whether to submit a revised application for a Special Rate Variation (SRV) and an increase to minimum rates.