At its meeting on Monday 26 May, Council considered updates on contamination investigations, new Writers in Residence, tenders for bushland and stormwater and progress on the North Sydney Olympic Pool
The Council also considered item 10.12, a revised Draft Delivery Program 2025-2026 and Operational Plan 2025-2026 following its unsuccessful application for a Special Rate Variation (SRV) in 2025-2026.
10.2. Quarterly Budget Review – March 2025
Council received the March 2025 Quarterly Budget Review Statement, which monitors income, expenditure, and project performance for the third quarter of the 2024/25 financial year.
The report shows an improved financial position, with a $3.467 million reduction in the operating deficit (before capital grants and contributions), now sitting at $2.005 million. This improvement is primarily due to one-off legal recoveries, lease acquisition compensation from the NSW Government, increased investment income, and savings from vacant positions and delayed capital works.
The capital budget was revised down by $37.17 million, reflecting delays in several key projects, including the North Sydney Olympic Pool redevelopment, Stage 2 of the Hume Street Park Expansion, and the 287 Miller Street Affordable Housing project.
An additional $10 million loan from TCorp has been applied for to manage adjusted cash flow needs, with drawdown expected next financial year.
For more details, read the report here: Quarterly Budget Review - March 2025
10.3. Q3 Review of the Delivery Program/Operational Plan 2024/25
Council reviewed progress against the Delivery Program 2022–2026 and Operational Plan 2024/25 for the third quarter (1 January – 31 March 2025).
Of the 192 projects scheduled to commence or continue during Q3, 157 were completed or on track. A further 35 projects were delayed, not progressing, or discontinued. One project was formally discontinued.
For more details, read the documents here: Delivery Program 2022–2026 and Operational Plan 2024/25
10.4. Investment and Loan Borrowings Report as at 30 April 2025
Council received an update on the performance of its investments and loan borrowings for April 2025.
The total investment portfolio, comprising Term Deposits, Floating Rate Notes and Bonds, returned +0.33% for April (+4.11% p.a. annualised), slightly below the AusBond Bank Bill Index benchmark (+0.35% actual, +4.38% p.a.).
Investment income exceeded the year-to-date April budget by $1.13 million. This result includes adviser fees of $13,500, with an annual fee of $18,000. A $1.2 million increase to investment income has been proposed in the March Quarterly Budget Review.
See the full report here: Investment and Loan Borrowings Report as at 30 April 2025
10.5. Planning Proposal for 52 McLaren Street – Post Exhibition Report
The Planning Proposal seeks to amend the North Sydney Local Environmental Plan (NSLEP) 2013 to:
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Permit building heights of part RL 107m and RL 156m (8 and 24 storeys),
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Apply a maximum floor space ratio (FSR) of 5.3:1
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Increase the minimum non-residential FSR from 0.5:1 to 1:1.
The proposal was exhibited alongside a draft amendment to the North Sydney Development Control Plan (NSDCP) 2013 and a draft Voluntary Planning Agreement (VPA), offering public benefits valued at $12.5 million, including a childcare centre space, a public pedestrian link, and up to 5% affordable housing.
A total of 71 submissions were received during exhibition. Of these, 69 opposed aspects of the proposal. After reviewing the submissions, Council resolved to:
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Proceed with the Planning Proposal without change,
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Execute the VPA as exhibited,
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Adopt the DCP amendment with one modification: removing the cap on car parking at 80% of the standard DCP requirement.
Council will now develop the Local Environmental Plan and publish the amended DCP, notifying all submitters of the outcome.
10.6. State-Significant Development Applications – Planning Pathways and Impacts
Council considered a report addressing the increasing number of State Significant Development (SSD) applications affecting the North Sydney LGA, and the challenges these present in terms of policy, community input, and resourcing.
Key issues:
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In the past two years, changes introduced by the NSW Government to fast-track housing supply have resulted in 18 sites in North Sydney either declared or soon to be declared SSDs.
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These changes include the rezoning of the St Leonards and Crows Nest precinct and the introduction of low- to mid-rise housing reforms.
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The increased use of SSD pathways reduces Council’s ability to provide meaningful input, particularly where 14-day notification periods apply, and places significant resource burdens on Council.
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There are also concerns that introducing residential uses into core commercial areas of North Sydney and St Leonards could result in the loss of commercial floor space for over 25,000 jobs, undermining the strategic role of these centres.
Council resolved to:
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Acknowledge the planning, policy, and resourcing challenges SSD pathways present.
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Write to the NSW Minister for Planning requesting a delay on converting commercially zoned land to residential until the Greater Sydney Region Plan is updated with a clear strategy for CBDs.
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Seek funding support from the Department of Planning, Housing and Infrastructure to help manage SSD responsibilities effectively.
More information on the low and mid-housing reforms here: Low and mid-rise housing reforms to begin on 28 February – North Sydney Council
10.7. Contamination of Long Bay, Cammeray – Investigation Update
Council reviewed a follow-up report on the contamination concerns raised in Long Bay, Cammeray, after a resolution from the 10 February 2025 meeting.
Investigations by the EPA and NSW Department of Environment and Heritage (DEH) found that the polyethylene pipe at the head of Long Bay was not connected to any contamination source. The pipe has now been removed and disposed of by Council.
Council resumed acid sulfate soil testing on 3 April 2025. Soil sampling is complete and results will be reported once analysed.
The NSW Department of Climate Change, Energy, the Environment & Water (DCCEEW) has installed groundwater monitoring wells across Tunks Park. These will be monitored monthly to assess groundwater levels and seawater infiltration.
Council resolved to:
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Continue collaborating with the EPA and DCCEEW to identify any remaining or potential pollution sources.
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Receive a further report once the soil test results from Tunks Park are available.
10.8. Don Bank Writer in Residence 2025 – Appointment of Successful Applicants
The residency provides exclusive use of the Don Bank Museum studio and includes community engagement through workshops and talks hosted by Stanton Library.
A new feature in 2025 is a one-hour consultation with a publisher from Penguin Random House, offering professional career advice to the resident writer.
A total of 18 applications were received for the 2025 program, with five shortlisted. Given the strength of the applications, the selection panel recommended two writers be appointed—each for a six-month residency.
Find out more about Don Bank Museum: Don Bank Museum – North Sydney Council
10.9 & 10.10. Tender Approvals – Bushland Services and Infrastructure Maintenance
Tender 7/2025 – Bushland Rehabilitation and Infrastructure Services
This tender establishes two separate panels:
Part A: Bushland rehabilitation (12-month reserve-specific contracts)
Part B: Bushland infrastructure services (one-off project-based contracts)
The panels will support delivery of Council’s Bushland Rehabilitation Plans from 1 July 2025 to 30 June 2030. Up to eight contractors have been appointed to each panel, selected for their qualifications, experience, and accreditations.
Tender 10/2025 – GPT Cleaning and CCTV Inspections & Pipe Cleaning
Tender 10/2025 was divided into:
Part 1: Gross Pollutant Trap (GPT) cleaning
Part 2: CCTV inspections and pipe cleaning
11 submissions were received across both parts. Tenders were assessed in accordance with Council’s Procurement Policy and section 55 of the Local Government Act. Council accepted the highest-ranked tenderers for both Part 1 and Part 2.
10.11. North Sydney Olympic Pool (NSOP) Redevelopment Project Update
Council received an update on the progress and financial status of the North Sydney Olympic Pool Redevelopment Project. Contractor (Icon) has advised a revised completion date of 30 October 2025, indicating a further two-month delay since the last update. The total forecast project cost remains at $122 million, but Council is aware of potential increases due to unsubmitted contractor variations and rising consultant fees linked to delays
Icon has begun legal action against Council. Council is pursuing separate legal action against Brewster Hjorth Architects. Both matters are being managed by Council’s legal representatives.
To keep up to date with the NSOP redevelopment, subscribe to the e-newsletter here: https://confirmsubscription.com/h/j/33869AA4BC107EBE
10.12. Draft 2025-29 Delivery Program and 2025-26 Operational Plan
At its Ordinary meeting on 28 April 2025, Council considered the draft Delivery program 2025-2029 and Operational Plan and Budget 2025-2026. These drafts relied on additional rating revenue as outlined in the application for special rate variation submitted to the Independent Pricing and Regulatory Tribunal (IPART) in February 2025. This special rate variation aimed to address short term liquidity needs and improve long-term financial strength and sustainability. On 16 May 2025, IPART advised that Council’s application had been refused in full.
As a result, Council has developed a revised Draft Delivery Program 2025-2026 and Operational Plan 2025-2026. This includes proposed reductions in projects and services as well as a new financial repair strategy. Council endorsed this revised plan for public exhibition from 27 May to 24 June 2025.
Additionally, Council also agreed to hold an extraordinary meeting on Monday 30 June 2025. This meeting will discuss adoption of the draft Delivery Program 2025-2029 and Operational Plan, which includes the Budget and Statement of Revenue Policy for 2025-2026.