Revised Financial Plan and Asset Management Strategy

At its October 2025 meeting, Council resolved to support a proposed 24.6% Special Rate Variation and 4.4% rate peg (totalling 29%) to apply from 1 July 2026.The Special Rate Variation component will be dedicated to local infrastructure improvements.

This decision follows comprehensive community engagement on four rate increase options from July-September 2025, during which there was community support for a Special Rate Variation to fund local infrastructure improvements.

At the October meeting, Council also resolved to incorporate this rate increase in the following documents, and to place these documents on exhibition:

• Delivery Program 2025-2029 and Operational Plan 2025/26
• Long Term Financial Plan 2025-2035
• Asset Management Strategy 2025-2035

These are Council’s Integrated Planning and Reporting (IP&R) documents.

By putting these documents on exhibition, community members can see:

• The types of infrastructure projects which will be funded by the proposed rate increase
• How the rate increase will reduce Council’s infrastructure backlog, including across all assets and within certain asset classes
• Additional information about the impacts of the proposed rate increase on ratepayers, and how this will be managed by Council.

The preparation and exhibition of these documents is an important part of any application, to the NSW Government, for a Special Rate Variation.

The DP&OP is the primary reference point for all activities undertaken by council during its term of office (until 2029). Compared to the version adopted in June 2025, the draft revised version of the DP&OP now includes:

• Reference to a proposed Special Rate Variation from 1 July 2026 and the benefits of this option.
• A revised financial summary, and summary of capital works program and operational projects from 2026/27 to 2028/29

The projects to be funded in the financial year 2025/26, and financial information related to this year, remain unchanged.

The Long Term Financial Plan (LTFP) is a ten-year rolling plan that informs decision making and demonstrates how the objectives of the Delivery Program and Operational Plan will be resourced and funded.

The version adopted in June 2025 included four rate increase scenarios, which formed the basis of comprehensive engagement on these scenarios between 21 July and 1 September 2025.

The revised LTFP includes two scenarios, namely a Base Case scenario (rate peg only at 4.4%) and a proposed Renew and Enhance Infrastructure (Special Rate Variation at 24.6% above the rate peg of 4.4%) scenario.

The revised LTFP shows that, under the proposed rate increase:

• Council’s infrastructure backlog is projected to decrease by 39%, from $194 million in 2025/26 to $119 million in 2034/35, resulting in a noticeable improvement in the condition of local assets.
• Council is expected to achieve average annual operating surpluses of $17.3 million, which can be reinvested into infrastructure.
• Asset renewals are forecasted to align with depreciation, supporting sustainable long-term asset management.

In contrast, under the Base Case (rate peg only option), the backlog would grow to $276 million by 2034/35, average annual deficits of $1.75 million would be recorded, and the condition of infrastructure would continue to decline.

Other changes to the revised LTFP mainly include:

• Updating information on whether Council meets infrastructure and financial benchmarks under the two scenarios
• Incorporating an average rate increase table by residential and business ratepayer classes for the coming four years, under the proposed rate increase

Providing new information on Council’s analysis of the capacity of ratepayers to pay a rate increase based on independent advice.

At its October 2025 meeting, Council considered community feedback on four rate increase options between July-September 2025, along with the:

• Infrastructure needs of the Ku-ring-gai LGA
• Capacity of ratepayers to afford a rate increase; and
• Council’s confirmed 2026/27 rate revenue peg increase of 4.4%, which was announced in late September

At that meeting Council resolved to adopt for exhibition a revised Delivery Program and Operational Plan, Long Term Financial Plan and Asset Management Strategy, which incorporates a Special Rate Variation of 24.6% and rate peg of 4.4% to apply in 2026/27, with rates to subsequently increase by the annual rates peg in future years.

The 4.4% rate peg increase will help Council meet increases in operational costs and population growth.

The 24.6% Special Rate Variation (for which Council must apply to the NSW Government before February 2026) will be dedicated to local infrastructure improvements.

Read the report to the October 2025 meeting here.

And minutes here Minutes of Ordinary Meeting of Council - Tuesday, 21 October 2025

The Special Rate Variation component of the proposed rate increase would deliver an additional $20.7 million a year in funding dedicated to renewing, upgrading and building new infrastructure.

This would be allocated as follows:

• $5.9 million for stormwater and drainage
• $6.7 million for community buildings
• $1.9 million for recreational facilities
• $0.94 million for existing footpaths
• $2.1 million for new footpaths
• $1.7 million for other infrastructure upgrades (including traffic and transport facilities)
• $1.46 million to repay the St Ives Indoor Sports Centre construction loan

The proposed rate increase represents the best balance between achieving necessary asset management outcomes, addressing community priorities and impact on ratepayers.

It would:

• Allow Council to meet community expectations set out in the Community Strategic Plan and make Ku-ring-gai a better place to live and work by providing infrastructure that is more accessible, connected, modern, safe and enjoyable.
• Deliver a noticeable and significant improvement in the quality of Council's infrastructure.
• Specifically target infrastructure areas that the community has identified as having high importance but lower levels of satisfaction – including the condition of existing footpaths, new footpaths and traffic management.
• Provide the necessary funding for the construction of the St Ives Indoor Sports Centre.
• Be in line with substantial support received during the exhibition process, with 45% of the community at least somewhat supportive of this option.
• Align with the principle of inter-generational equity by ensuring the current generation does not burden future generations with the increased costs of deteriorating infrastructure and temporary repairs.
• Be in line with a ratepayer capacity-to-pay analysis and would be implemented alongside careful consideration of hardship applications, consistent with Council’s rates policy addressing hardship.

The overall 29% increase will, in 2026/27, lead to an estimated $499 average residential rate increase (or $9.60 a week) and an estimated $1,676 average business rate increase (or $32.23 a week).

Of the $499 average residential rate increase, some $76 will flow from the 4.4% rate peg and $423 from the 24.6% Special Rate Variation.

The actual average rate increase in 2026/27 could be slightly different, depending on the variables such as the number of new properties created in the area during 2025/26 and land valuation changes.

The Special Rate Variation will apply once and then stay in Council’s rate revenue base on a permanent basis. From 2027/28, rate revenue will increase in line with the rate peg.

If Council decides to apply for a Special Rate Variation (see Next Steps below) and the NSW Government approves this increase, then Council will be required to report each year (in its Annual Report) on the projects funded by the increase.

The SRV will be permanent.

The SRV increase of 24.6% will apply once in 2026/27, and then permanently stay in Council’s rate revenue base.

From 2027/28, rates revenue will only increase in line with the rate peg.

The exhibited Long Term Financial Plan includes an attachment which shows how average rates could change over four years, due to the SRV.

Council has released an indicative list of infrastructure projects that could be funded through a proposed rate increase (including both the Special Rate Variation and the rate peg amount) over the next ten years.

This document is being made available on the Have Your Say page to build a better understanding of the benefits that the increased revenue would deliver.

Community members will have the opportunity to comment on specific projects as part of the annual exhibition of the Delivery Program and Operational Plan, which will next take place in the second quarter of 2026.

Council has identified that about 53% of its 300 buildings need capital upgrades, either through refurbishment or knockdown and rebuild.

These buildings typically require works to address:

• Modern accessibility standards, including through the construction of access ramps, disabled toilets and providing sufficient internal access movement space
• The needs of the rising number of female athletes and users, including the provision of separated changing facilities and toilets
• Significant issues with the building’s structure or performance, such as waterproofing failure, poor lighting or degraded internal finishes.

Council only has available funds to refurbish or replace, on average, two existing buildings per year. As a result, the infrastructure works backlog for Council’s buildings is currently $63 million and, without the proposed rate increase, will grow to $104 million by 2034/35.

See an indicative list of all buildings to be refurbished or replaced under the proposed rate incre….

With the proposed 29% rate increase, Council would be able to refurbish or replace an average of eight buildings per year (that is undertake four times the level of activity compared to a scenario without the rate increase). As a result, the infrastructure backlog would reduce to $37 million by 2034/35.

Buildings earmarked for renewal or replacement including sports ground amenity blocks and shelters, public toilets, bus shelters and community centres and children’s facilities.

Council is responsible for around 12,000 stormwater drainage pipes which are predominantly located under road reserves and run to a length of nearly 300km.

Council is also responsible for around 12,100 drainage pits, headwalls or other inlet structures, and a range of open drainage channels.

This stormwater system plays a crucial role draining rainwater from private and public buildings, streets and open space, particularly during heavy rainfall events.

 However, this stormwater infrastructure has largely not been renewed since being built when the Ku-ring-gai area was first developed between the early to mid-1900s.

Recent reviews have found that 43% of Council’s stormwater assets were classified as being in a poor or very poor condition, with many of the assets coming to the end of their useful life and not operating as efficiently as they should.

Council currently only has available funds to renew around 900m of stormwater pipes and 30 kerb inlet pits each year.

Council’s infrastructure works backlog for stormwater currently stands at $41 million and, without the proposed rate increase, will grow to $79 million by 2034/35.

This will result in increased localised flooding, road closures and contamination of local waterways, along with more potholes, subsidence and road repairs.

With the proposed rate increase, Council would be able to renew 6.9km of stormwater pipes each year (that is a seven times increase in activity) and 250 inlet pits (an eight times increase in activity).

The infrastructure backlog would reduce to $13 million by 2034/35.

See an indicative list of all stormwater assets to be refurbished or replaced under the proposed rate increase here.

Recreational facilities comprise all assets within our sports fields, parks and bushland locations. This includes ovals, golf courses, playgrounds, playing courts, walking tracks, fire trails and the Ku-ring-gai Sports and Aquatic Centre.

Without a Special Rate Variation, Council would be able to complete around five-six recreational facility improvement projects a year, including resurfacing, lighting, drainage, fencing and pathway projects. This will result in the infrastructure works backlog for recreational facilities increasing from $6.7 million in 2025/26 to $25.5 million in 2034/35.

This is expected to result in an increase in:

• Issues with playing surfaces and amenity areas
• The breakdown and failure of essential infrastructure within facilities
• Risks to the public due to the deteriorating conditions.

With the Special Rate Variation, Council will be able to complete at least nine-ten recreational facility projects a year up until 2031/32, and then additional projects after this time after $1.46 million in annual funding allocated to the St Ives Indoor Sports Centre loan is re-allocated to this asset class.

By 2034/35, Council will be able to maintain the recreational facility infrastructure works backlog at $6.7 million.

See an indicative list of all facilities to be refurbished or replaced under the proposed rate incre….

Council currently has sufficient funding to reduce the infrastructure works backlog for the surfaces of roads and car parks, and for bridges.

However, Council has identified a critical funding shortfall for traffic and transport assets, including bus stops with disabled access and priority traffic facilities including roundabouts, median islands and wombat crossings.

Under the proposed rate increase scenario, an additional $1.7 million per year is allocated to deliver these upgrades.

This investment addresses the current funding gap and enables Council to implement targeted road safety improvements across the LGA.

See an indicative list of all traffic and transport works to be funded by the proposed rate increase here.

Ku-ring-gai Council currently has 377km of existing footpaths, with most footpaths being made of concrete but others comprising asphalt or pavers.

At present, the infrastructure works backlog to bring these footpaths to a like-new condition is $6.6 million. Due to limited funds being available without a proposed rate increase, about 20% of existing footpaths are expected to fall into an unsatisfactory condition in the next decade.

This will result in increased surface cracking and trip hazards, as the infrastructure works backlog increases to $13.58 million by 2034/35.

With the proposed rate increase, Council will be able to repair and rebuild a two times greater area of existing footpaths, from 2.9 sq/km to 6.5 sq/km a year. This will allow Council to contain the infrastructure works backlog to $6.98 million by 2034/35.

See an indicative list of all existing footpaths to be repaired or rebuilt under the proposed rate increase here.

Currently, streets running to a length of 250km do not have a footpath on either side of the street. This means residents in these streets do not have safe, trip-free walking access to local public transport or retail services.

A further 620 km of streets have a footpath running on only one side of the road.

At current funding levels, it will take until 2082 to build a footpath on at least one side of every street in Ku-ring-gai.

The proposed rate increase scenario would increase the annual budget for new footpaths by $2.1 million. This increase in funding will enable a footpath on one side of every street by 2052 instead of 2082. 

See an indicative list of all new footpaths to be repaired or rebuilt under the proposed rate increase here

In 2021, the Department of Education completed a two court, indoor basketball facility in the grounds of the St Ives High School.

In 2022, Council gained development approval for a second stage of this facility, which joins and extends with the first stage and will have an additional two indoor basketball courts, associated ancillary rooms, café, and car parking.

The school will have use of all four courts during school hours and the community will have use of all four courts after school hours.

Construction works are underway, with an anticipated opening in early 2026.

The project’s revised budget is $31.2 million, of which $13.5 million is being funded by a loan which is now in place.

The proposed rate increase will fund $1.46 million in loan repayments to 2031/32, which would otherwise come from general revenue.

While the NSW Government will retain ownership of the underlying land, and therefore principal asset management, Council will have a 50-year licence to use the facility.

For more information about the St Ives Indoor Sports Centre, see this web page or the revised Long Term Financial Plan.

This was an issue raised during consultation undertaken on four rate increase options between July-September 2025.

In the business papers for the October 2025 meeting, a  detailed response was provided to this issue along with themes raised in all submissions.

If Council does not progress a Special Rate Variation, then ongoing deficits will mean it will not be able to invest additional funds into asset maintenance and renewal, leading to a significant increase in Council’s infrastructure backlog and an increasing cost from temporary repairs.

Council will be unable to maintain and renew existing infrastructure to meet community needs, and will be unable to meet statutory finance and asset management benchmarks.

Council historically operates as a lean and efficient organisation, consistently outperforming most metropolitan councils in key financial metrics:

• In 2023/24, Council's operating expenditure per capita was $1,215, 16% lower that the Sydney average of $1,441. This suggests Council is delivering services in a more cost-effective manner than the average across Sydney.
• For urban metropolitan councils, lower expenditure per kilometre of road suggests efficiency in maintaining infrastructure and providing related services. Ku-ring-gai's operating expenditure per km of road was $320,000 in 2023/24, which is 32% below the metropolitan average of $476,000 per km.
• In 2023/24, each Ku-ring-gai Council staff member serviced 309 residents, the second highest ratio among Sydney councils and significantly above the Sydney average of 235 residents. A higher ratio typically points to greater staff efficiency, with fewer staff responsible for serving a larger population.
• Council’s average annual cost increase since 2017/18 is the 4th lowest in Sydney, which indicates that Council is successfully containing its costs while continuing to maintain service levels to the community.

Further information about historic and future cost containment and efficiency information will be reported to Council’s December 2025 meeting.

Council’s Rates, Charges and Sundry Debts – Assistance, Concessions and Recovery Policy provides a framework for offering flexible payment arrangements and assistance to ratepayers experiencing financial difficulty.

The policy recognises that ratepayers may at times have difficulty paying their rates and charges and outlines the steps and processes Council will consider in these circumstances.

If Council progresses with a SRV, Council will continue to carefully implement this policy. In addition, Council will make the policy more accessible on the website.

Council also provides financial relief to eligible pensioners by reducing rates, charges and interest on properties occupied as their principal residence.

This includes a statutory annual concession of up to $250 provided under the Local Government Act.

Council also provides a voluntary concession of 8.5% of total rates and charges. This translates to an additional average concession of $146 in 2025/26.