Council looking at increased surplus

Central Coast Council is proposing to increase its end of year surplus from a budgeted $8.3M to a budgeted total of $25.9M.

Including capital grants and contribution, the budgeted operating surplus will move from $101.7M to $109.5M.

A report going to the May 28 meeting says Council’s financial focus continues to be on maintaining expenditure, raising additional income, monitoring incoming cash flow, performing cash flow forecasts and ensuring a more sustainable cash preservation.

Council is preparing to increase water rates by eight per cent plus CPI of 3.6 per cent from July 1.

As at the end of the third quarter of the 2023-24 financial year (Q3) Council has a consolidated net operating surplus of $35.4M, before capital income, which is favourable to budget by $37.5M and a net operating surplus including capital income of $87.2M, which is favourable to budget by $43.2M.

The report also shows that Council has underspent its capital works budget by $15M in the third quarter, from January to March.

“The unexpended budgeted funds associated (with capital works projects) will be reviewed as part of the adoption of the 2024-25 Capital Works program included in the Draft Operational Plan, at the June Council meeting,” the report states.

The report also shows Council does not meet the Local Government benchmark for infrastructure renewal.

The renewal benchmark is more than 100 per cent and Council has achieved 85.9 per cent year to date.

It is, however, way ahead of the benchmarks in four other areas.

Operating performance ratio needs to be above 0 per cent and is at 7.6 per cent.

Own source operating revenue ratio needs to be above 60 per cent and is at 87.2 per cent.

Available cash which needs to cover expenses for three months is actually at 6.9 months.

The Q3 report gives an update on all 127 programs or targets in the current operational plan.

It shows that 89 are on track, 26 are delayed, 10 are completed, one on hold and one “closed”.

The closed target was about reducing the timeframe for assessing commercial, industrial and tourism related development applications (DAs), by 25 per cent by June 30, 2024.

This was in line with funding agreements with the Greater Cities Commission and Department of Planning and Environment.

“Target closed as a result of Greater Cities Commission closure,” the report notes.

“No updates to be received from DPIE (formally Department of Planning and Environment).”

As well, the target of more than 30 per cent of residential DAs (housing, dual occupancy and secondary dwellings) having been determined within 40 days (calendar days) has not been met.

At Q3, 13.7 per cent of residential DAs were determined within 40 days, with a YTD of 27 per cent.

The number of mean assessment days for all DAs, not just residential, is meant to be below 80 days but at Q3, the mean assessment days was 144 days, with a YTD of 130 days.

And work on the regional animal care facility has been slowed due to Council’s planning department asking for further information on the Council’s submitted development application for the new centre proposed for Mardi.

The Community Support Grant Program has so far received 31 applications with 20 endorsed by Council for a total of $70,255.70 given to community groups in funding.

Year to date six Council events have been held.

They include ChromeFest, The Lakes Festival, Light Up The Lake, New Year’ Eve, Australia Day and Loves Lane.

More than 106,000 attended the events with a total economic impact of $17.5M, the report states.

Merchandise sales revenue increased 25 per cent in Q3 from 2019-20, before COVID, and 46 per cent Year To Date (YTD) at the Visitor Information Centre.

And YTD Council has renewed 22.6km of existing road pavement and 6.7km in Q3.

The road renewal target for the entire year was 15km which was completed ahead of schedule as Council has been successful in gaining what it called “significant” grant funding.

As a result, the program was accelerated.

The new financial year starts on July 1 and the new operational plan is on public exhibition but closes this week and will be presented to the June meeting of Council for adoption.

Merilyn Vale