Central Coast Council has advised the Office of Local Government that it is in a serious financial situation and faces “an immediate and serious liquidity issue” but has refused to elaborate on the situation.
The announcement follows a review of Council’s budget following a year of natural disasters and the impact of COVID-19, which reveals that its budgetary position has deteriorated since the March 2020 result.
The deficit reported at that time of $41M is now expected to increase to $89M.
A media releasee issued by council on October 6 says some expenditure over the past 12-18 months may have resulted in restricted funds being used contrary to the provisions of the Local Government Act 1993.
This is still under investigation.
“These issues have recently come to light due to reviews commissioned by the CEO and notwithstanding a previous audit and report that did not reveal the issues currently under investigation,” the release says.
It says CEO, Gary Murphy, has advised the Office of Local Government NSW of the financial issues, but Council has refused requests for an interview with Murphy to clarify the situation.
More to come….
Interview with Gary Murphy, August 3, 2020.