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Plenty pumped? Council to increase costs to ratepayers as oil crisis adds millions to diesel garbage trucks; puts new budget on public exhibition

Bin collection days are about to hit the pockets of Northern Beaches residents as Northern Beaches Council reveals plans to pass on the increased costs for diesel (a result of the Iran/USA/Israel war and resulting oil crisis). Diesel powers our waste collection trucks, which is a critical service provided by the council.

For the 2026/27 budget, the standard domestic waste charge is proposed to increase to $652 for the year, representing an overall increase of $53. Of this, $40 is attributable to higher diesel fuel costs.

Overall ratepayers will be additionally charged an average of about $224 more a year, or $56 a quarter. Council estimates of that $56, $13 relates to the Domestic Waste charge, $15 to the rate peg  and $28 to the Special Variation program  (the approved rate increase).

Why will waste services cost more?

“Waste service has been exposed to the increased diesel price, and we are recommending to Council a larger waste charge than we would have forecast in earlier months,” Caroline Foley, Chief Financial Officer (CFO) at Northern Beaches Council, said at Tuesday’s Council meeting.

“For the waste business, we could be looking at $4 million plus in additional costs for the year ahead.”

“For the waste business, we could be looking at $4 million plus in additional costs for the year ahead.”

In the Council papers, Council stated that “diesel fuel is a significant cost driver for waste management, as the service relies heavily on fuel-intensive vehicle fleets for kerbside collection and the transport of waste to processing and disposal facilities. These cost pressures are largely outside Council’s control and reflect broader market and supply conditions impacting the transport sector.”

Miranda Korzy, Greens Councillor for the Pittwater Ward, acknowledged that local government is not immune to international conflicts.

© Lyndon Marceau / marceauphotography

Council also acknowledged that the increase in fuel-related costs is flowing to Council’s operating costs in other areas like road and civil works, fleet operations and transport-dependent services and contracted services with fuel escalating clauses.

Northern Beaches Council is not the only council passing on diesel fuel costs, with the Sydney Morning Herald reporting it’s a widespread issue amongst NSW Councils. While Northern Beaches is passing on an 8.8 per cent increase, Camden Council is passing on a 35 per cent increase. Some councils are stockpiling diesel; however, Northern Beaches Council confirmed to Manly Observer that they were not doing this but are actively monitoring fuel supply and pricing conditions and is not experiencing any disruptions to waste services.

How are waste charges decided?

Council rates are made up of three separate components. One of these is waste charges, and they must cover the cost of household waste services, including recycling and bulky goods collections.

Unlike general rates (which are based on property valuations) the waste charge is not capped and must reflect the actual cost of delivering the service.

Any waste charge revenue collected by Council that is not required to deliver the service is returned to ratepayers in adjustments to future waste charges.

What’s in the budget 

Council voted to exhibit the Delivery Program 2026-2030, Operational Plan 2026/27, and Long-Term Financial Plan 2026-2036 (aka The Budget) to the community for feedback (via Your Say from today, 24 April to 24 May 2026).

The 2026/27 budget proposes an expenditure of $588 million, including a record $125 million capital works program supported by $21.5 million in Special Variation funding (that rate rise which started last year).

“This is the biggest infrastructure investment our community has ever seen, and it is focused on the assets people use every day, from roads and footpaths to beaches, parks and community facilities,” Mayor Sue Heins said.

“This is the biggest infrastructure investment our community has ever seen.”

“This funding allows us to get ahead on essential works, improve safety and reliability, and protect the long‑term condition of community assets while keeping Council financially strong.”

Northern Beaches Mayor Sue Heins at Dee Why car park.

The proposed capital works program for 2026/27 includes:

  • $36.8 million to improve road assets, including $12.8 million for road resurfacing and repairs
  • $14 million for sporting facilities, including the completion of the Warringah Recreation Centre
  • $13.3 million for community facilities, including amenities at Killarney Heights, Freshwater Beach and Boondah Reserve
  • $13 million to improve foreshores, including the Avalon and Bilgola Beach Rockpool and South Collaroy foreshore
  • $10.1 million for priority stormwater works to reduce flooding and pollution
  • $6.5 million for new and improved reserves and parks at Warriewood, Clontarf and Frenchs Forest
  • $4.3 million for new and improved footpaths across 18 suburbs
  • $4.3 million for town and village centres, including works at Balgowlah and Avalon
  • $2.9 million to continue the Collaroy‑Narrabeen coastal protection works
  • $1.6 million for new and improved playgrounds, including at Collaroy Plateau
Council’s forecast income
Council’s planned spending.

The budget includes a $35 million IPART endorsed Special Variation to fund improvements to roads, footpaths and stormwater infrastructure and renew community facilities and town centres.

The Special Variation also supports enhanced natural disaster preparedness and response, strengthening environmental protection, including expanding bushland regeneration and rehabilitation of dunes, creeks and waterways, alongside playground upgrades, higher grass mowing frequencies and future infrastructure projects.

However, the Council continues to draw criticism for its spending on staff including management costs, with councillor Vincent De Luca raising his concerns at every opportunity.

Council’s draft 2026/27 budget allocates $187.5 million to employee benefits and on-costs, an increase of nearly $10 million on the prior year. The budget does not publicly disclose a breakdown of executive salaries as it has previously, but figures tabled at previous budgets showed the council’s 110 full-time management positions, including the CEO, five directors, 22 executive managers and 81 managers, cost more than $25.2 million in salaries, with a further $3.2 million spent on the executive vehicle pool.

In his budget council has outlined a series of measures aimed at reducing the burden on ratepayers.

The Productivity and Improvement Plan targets $5 million in ongoing operational savings over three years, including $1.7 million from workforce management and organisational redesign, $2.14 million from service rationalisation, $580,000 from fleet optimisation, and $750,000 from energy efficiency. A further $10 million in one-off capital savings is targeted through property rationalisation, with the North Balgowlah land sale being one of the first assets Council wants to sell to that end. 

You can view the new budget and have Your Say from 24 April to 24 May 2026.

 

Written by Avi Vince with Kim Smee 

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