Funding better local infrastructure: have your say on rate increase options

Project overview

To fund local infrastructure, Ku-ring-gai Council is seeking community feedback on four rate increase options.

Three of these options would involve a permanent increase in rates above the NSW Government’s rate revenue peg. These options are known as Special Rate Variations and would result in a range of improvements, including to local drainage, footpaths, community buildings and recreational facilities.

The other option would mean increasing rates in line with the NSW Government rate peg. However this would see an ongoing and noticeable decline in local infrastructure.

Here you will find out why Council is considering a rate increase, details of each option and how you can have your say.

Infrastructure issues

Council has a range of infrastructure issues which could be addressed by a rate increase.

Community buildings

53% of Council buildings – such as halls, toilet blocks and pavilions - need to either be refurbished or rebuilt to meet modern standards (including step-free access and improved safety and lighting).

Stormwater and drainage

43% of stormwater drainage is in a poor or very poor condition due to blockages, joint failure and age, increasing the risk of flooding. Some of Council’s stormwater drainage is now more than 100 years old.

Footpaths

In Ku-ring-gai, 248km of local streets don’t have a footpath on either side and 614km don’t have a footpath on both sides. In the next ten years about 20% of existing footpaths will become unsatisfactory in condition, raising the risk of trip hazards.

Recreational facilities

Recreational facilities include sportsfields and courts, parks and playgrounds and swimming pools. Council currently has insufficient funds to stop the deterioration of these facilities, and more will move from a satisfactory to unsatisfactory condition in the next decade.

Traffic and transport

Council does not have sufficient funding to implement approved traffic and pedestrian upgrades at various locations including known accident black spot locations.

Major Projects

Loans are required to support two major projects – the St Ives Indoor Sports Centre (under construction) and Marian Street Theatre (proposed). A funding source is needed for these loans. Find out more in the frequently asked questions section on this page.

Rate increase options being considered

Deteriorating Infrastructure (assumed 3% rate increase)

This is a ‘business as usual’ option based on Council’s current financial operating model.

Rates will increase in line with the NSW Government rate revenue peg which is available to all NSW councils. Council is assuming the government will set a rate peg of 3% in 2026/27, resulting in residential ratepayers paying an average $52 a year (equal to $1 per week) increase from July 2026.

This means Council will not be able to invest in asset maintenance and renewal, leading to a significant increase in Council’s infrastructure backlog and continued under-spending.

There will be a noticeable decline in Council existing infrastructure, including additional infrastructure service failures.

Renew Infrastructure (22% increase)

Under this option, Council would increase rates by 22% in the financial year 2026/27, including an assumed NSW Government rate peg of 3%. This would lead to an average annual residential rate increase of $378 (or $7.27 per week).

This option would deliver an additional $16.5 million a year to renew and upgrade existing local infrastructure.

This funding would be allocated as follows:

$6.7m for buildings, for example halls, public toilets and community centres
$5.9m for stormwater and drainage, for example kerb inlet pits, pipes and drains
$1.5m for recreational facilities, for example playing surface, pathway, lighting, drainage and fencing improvements at sports fields, courts, parks and open space areas
$940,000 for footpaths, including to remove existing trip hazards.

It would also fund $1.46m a year in loan repayments on the St Ives Indoor Sports Centre’s construction.

Renew and Enhance Infrastructure (29% increase)

Under this option, Council would increase rates by 29% in the financial year 2026/27, including an assumed NSW Government rate peg of 3%. This would lead to an average annual residential rate increase of $499 (or $9.60 per week).

This option would provide an additional $22.6m a year for infrastructure spending.

In addition to all the benefits of the Renew Infrastructure option, this option would provide:

$3.8m to build new footpaths
$1.7m for other infrastructure upgrades, for example traffic and transport works
Another $600,000 for existing recreational facilities

Renew, Enhance and Expand Infrastructure (33% increase)

Under this option, Council would increase rates by 33% in 2026/27, including an assumed NSW Government rate peg increase of 3%. This would lead to an average annual residential rate increase of $568 (or $10.92 per week).

This option would deliver an additional $26.3m a year in infrastructure spending.

In addition to all the benefits of the Renew and Enhance Infrastructure option, this option will also deliver an additional $600,000 for other infrastructure upgrades (including traffic and transport works).

It will also deliver $2.98 million a year to service a $30.36 million loan to build the Marian Street Theatre project, and then subsidise the theatre’s operation.

Comparing the options

The table below compares all four rate increase options.

See also this table which lists the average rate increases, by residential and business ratepayer categories, for each Special Rate Variation option over four years

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Cost containment and efficiency

Ku-ring-gai Council is committed to improving productivity in its operations and asset management. We maintains strong financial discipline alongside any rate increases, with each staff member servicing 309 residents (the second highest among Sydney councils) and operating costs 16% below the Sydney Council average. We have reduced costs through innovative infrastructure methods like pipe relining, improved revenue management, strict budget controls, strategic debt management, and technology upgrades. These efficiency measures show Council's commitment to delivering quality services while keeping rates affordable for residents and businesses. Read more information here’

Have your say

Survey

Fill out the survey below to have your say.

Write a submission

Written submission can be sent as follows (quote reference number S14747-2):

Email; krg@krg.nsw.gov.au
Mail; to Ku-ring-gai Council, Locked Bag 1006, Gordon NSW 2072

NEXT STEPS

This consultation seeks your feedback on four rate increase options to apply from July 2026 to all Ku-ring-gai ratepayers. You can give feedback between 21 July and 31 August 2025.

It is expected that Council will consider feedback from this engagement process at its October 2025 meeting.

If Council was to support a Special Rate Variation, then it would need to seek approval from the NSW Government before February 2026.

Community events

Get more information and talk to us at one of the following upcoming community events

Online forum

When: Tuesday, 29 July (6.30pm-8pm)

Where: online via Zoom (link provided when you register)

REGISTER NOW

Drop-in session 1- with Mandarin, Cantonese and Korean translators

When: Saturday, 2 August (10-12pm)

Where: Gordon Library entrance foyer, 799 Pacific Highway, Gordon

No registration required – just drop in and talk to staff

In-person public forum

When: Wednesday, 13 August (6.30pm-8pm)

Where: Ku-ring-gai Council Chambers, 818 Pacific Highway, Gordon

REGISTER NOW

Drop-in session 2 (no translators)

When: Thursday, 28 August (2pm-4pm)

Where: St Ives Shopping Village, 166 Mona Vale Rd, St Ives - level 2 opposite AHA Mobile phone kiosk.

No registration required – just drop in and talk to staff

Your questions answered

View all

Enquiries

Mark Skelsey

Special Rate Variation Project Lead
Ku-ring-gai Council

T: 9424 0000

E: srv@krg.nsw.gov.au

Important documents

No Document Found.