Central Coast Council will continue to push for a seven-year extension of the 15 per cent general rates rise, which came into effect on July 1 for a three-year capped period.
Council determined at its meeting on September 28 to commence the next stage of community consultation in its bid to see the Special Rate Variation (SRV) of 13 per cent, on top of IPART’s cap of 2 per cent, continue over a 10-year period.
Council Administrator, Rik Hart, said two years of heavy losses and overspending had left Council having to restructure its business and budget to produce a surplus to repay a $150M debt over the next 10 years.
“We cannot forget, loans of $150M were provided to Council in 2020 based on Council’s financial recovery plan which included sale of assets, reduction in costs of $50M, capping infrastructure spending and a rate increase of 13 per cent plus rate peg for 10 years in order to repay the loans,” Hart said.
“In less than three years’ time we will be facing an average annual income loss of $25.8M over the next seven years and this means we will be forced to reduce or cease many services.
“There has been major restructuring of Council and Council is on track to achieve the $50M in cost savings including productivity gains.
“Together with the recent rate increase, Council is budgeting for a small surplus this financial year.
“Our current plan is working, and Council is on track to be able to continue to service its community.
“However, we face falling off an income cliff if the current level of rates is not maintained beyond June 2024.
“As it currently stands, if the Special Variation is not extended, in two years ratepayers will be given a 13 per cent reduction in their general rate component of the Council bill and Council will need to adjust its cost structures by a further $25.8M
annually on average
to cope with that reduction.
“I believe the community values the services it receives from Council, however Council cannot maintain its level of services, or increase them, and repay its debt, if it suffers a large reduction of income.
“We are proposing to make an application to IPART to maintain the current level of rates for a further seven years, consistent with what we asked for from IPART earlier this year.”
Hart said ultimately the community will have a major say in whether the application is successful, but they need to understand what the implications of a reduction in Council income would mean on the services that people use daily.
“Council will produce two long-term financial plans, one showing income at the current rate structure, the second showing the loss of $25.8M on average from year three onwards,” he said.
“We will undertake community consultation so the community can provide input to whether they would prefer to continue to pay the current level of rates or receive a reduction and see a dramatic fall off in services.
“I cannot make cuts that will endanger public safety, break the law or harm the environment.
“As a result, many of the services that are most likely to be targeted for reductions would be those that support community life such as culture, sports, community services and economic development.
“Additionally, the ability to partner with other levels of government to construct new facilities and extend services will be greatly reduced.”
Council will seek community feedback over the next few months before it determines early next year whether to formally apply to IPART for a SRV extension.
Information on how residents can participate in community consultation can be found at yourvoiceourcoast.com.
Terry Collins
Churches use council services so they should pay rates.
All of the council involved in the so called lost money should be investigated by the police. The money has gone somewhere and it is more than likely in their hidden accounts. And to ask rate payrs to get them out of the mire is an insult.
Rate increases and 150million dollar loans by this cavalier Administrator on the surface does not appear to pass the pub test.
Given the recent self-demise of the Premier, the amalgamation of Councils and declaration of 5the Greater Sydney region does not need two people Administ5rator and CEo who collectively receive in excess of $1 million, needs a more specific forensic independent audit and an ICAC investigation, three Administrators and numerous CEO’s have made no specific revelation about the cause and effect of the financial crisis now facing the CCC,
It’s not the council that is asking for such a large increase. It’s the administrator. He is not mayor or councilor. He is the administrator. We don’t have a council. Leave it up to our future representatives to make such a decision. If unacceptable we can vote them out. Not so for this bloke.