Are you over the shock of your latest rates notice?
The good news for former Gosford residents is that the pain won’t last long, according to former Central Coast Council Administrator Dick Persson in a letter to IPART.
“My experience with rate rises is not as extensive as the Tribunal by any means, however I believe history shows that most controversial rate increases are fairly quickly forgotten once implemented,” Persson said in a letter to the Independent Pricing and Regulatory Tribunal (IPART) in April this year.
Many ratepayers in the former Gosford LGA would beg to disagree with rates notices rolling in and dozens expressing their shock on social media as the impact of the 15 per cent rise and rates harmonisation with the former Wyong LGA takes effect.
Pensioner Pat Bradbury of Narara got his rates notice this week to discover an increase of almost 30 per cent over last year’s notice.
“Last year’s rates levied was $1,277 and this year it was $1,639,” he said.
“I was flabbergasted that this rise could be imposed on us.
“A rise of around $14 a fortnight might mean nothing to some, but to those of us on a pension that’s a lot of money.”
Persson’s letter to IPART has been made public by Kincumber resident Kevin Brooks, who received copies of correspondence between IPART and Persson in a Government Information Public Access (GIPA) request.
Persson’s comment to IPART was in a letter to support Council’s submission for a special rate variation (SRV) – a rate rise – of 15 per cent.
Council wanted the SRV to be permanent.
“I am concerned that an IPART decision to grant, for example, a two or three- year rate rise, would see the Council having to start the whole process again in 12-24 months’ time, reigniting the anger and debate about the performance of the previous councillors and senior executives, and setting back the important challenge of regaining community confidence in the council,” Persson said.
He said the financial collapse of Council was unprecedented in NSW history and the community anger was also unprecedented and had resulted in many objections to IPART opposing the rate rise.
The common refrain was “why should we have to pay for their mistakes/incompetence”, he said.
He attached his final report to the Local Government Minister in which he recommended the councillors’ suspension be continued and elections deferred.
“If the Minister accepts my suggested approach a new Administrator and the new CEO will have around 18 months, without the ‘distraction’ of elected representatives, to concentrate on implementing the changes Mr (Rik) Hart and I have put in place, and to focus on ‘completing’ the merger work still to be done,” Persson said.
A couple of weeks later, IPART granted a rate rise of 15 per cent but only for three years.
Persson, the interim Administrator for six months, finished his stint and was replaced by Rik Hart, who has continued the campaign for the rate rise to continue.
This month ratepayers are receiving their rates for the next 12 months.
Brooks said Persson’s letter seemed contemptuous of ratepayers and indifferent to the financial pain or hardship being inflicted.
“Council senior management has clearly always seen rate hikes as an easier option than saving money through improved performance, productivity and efficiency,” Brooks said.
“They don’t seem to care about the impact on the community.
“The rate increase won’t be as quickly forgotten as Mr Persson suggests – especially by those struggling in the pandemic.
“And there’ll be worse to come when landlords in Gosford pass on an average 42 per cent rate increase to their tenants in higher rents in what is already a tight rental market.
“Tenants losing their homes certainly won’t forget.”
Merilyn Vale and Terry Collins
Mr Persson’s cynical jab at Central Coast ratepayers shows the contempt he held for our community. As he was hired by the NSW state government his inappropriate comments must be seen as endorsed by Macquarie St. Remember that when you vote. Redeem yourself Gladys by admonishing this fool you imposed upon us!
Easy enough for him to say. The pain will be ever lasting. Nobody but nobody likes to pay taxes. Regardless of how they may be disguised. What an insular man. Unbelievable that he presided over the debacle of the former council mismanagement. I would vote for anyone that would freeze rates and reduce rates in the future
For Rick and Dick on $200,000 per year $7.00 is just a coffee and donut! But for a pensioner on a fixed income it means missing out on some vital food. They keep pointing the finger at the Councillors forgetting that the State government audits Council’s and they repeatedly missed an anomaly as large as the so called Central Coast Council debt! The State government wastes that amount of money per week and laugh it off. The tally must be in to the billions. The Liberal Party beat their chests saying they are the only responsible party to money manage the State well they don’t look to flash at the moment!
The “15%” rate rise ended up being a whopping 46% increase when I received my rates this week!! 46%!!
I don’t know any business or utility that could get away with this especially in these difficult times.
There still has been no full disclosure of how the Central Coast Council could create such a problem and why the State Department of Local Councils let this happen unaudited.
The sheer arrogance and disregard to all ratepayers is inexcusable.
People seem to forget that it is the State Government that is responsible for the mess that the Central Coast is in with regard to Council and rates. They and nobody else forced the undemocratic amalgamation of the Gosford and Wyong Councils. It is the State Government that is responsible for the ensuing financial disaster and now outrageous and unfair increase in our rates. If there was ever a case for social disobedience and refusal to pay rates it is now!