Central Coast Council Administrator Rik Hart has officially endorsed the Council’s submission to the Independent Pricing and Regulatory Tribunal asking to keep the current rate rise for 10 years.
Last year, IPART granted the Council a three-year rate variation of a one-off 13 per cent plus the annual rate peg after which the 13 per cent was to be removed.
At an extraordinary meeting on February 3, Council continued on its rates rise path which was first announced in September last year, followed by a ream of documents put on public exhibition from December 22 to January 21.
These documents form part of the IPART submission.
They were: the Draft Revised Community Strategic Plan; the Draft Delivery Program 2022-2025 (including Operational Plan 2022-23); the Draft Resourcing Strategy, which includes the Long-Term Financial Plan, Workforce Management Strategy, and Revised Asset Management Strategy; and the Draft Fees and Charges 2022-23.
If IPART agrees to the continuation, the current rates will continue until 2030-31.
Council said that maintaining the SV for the further seven years would allow Council to generate the necessary annual surplus required to meet the annual principal repayments of the $150M in emergency loans obtained from commercial lenders to resolve the October 2020 financial crisis.
It would also secure Council’s financial sustainability by maintaining the current level of services and to fund the ongoing maintenance of assets by addressing any deterioration of Council’s existing asset base.
Council said it could continue to embed productivity improvements across the organisation, which are necessary to continue meeting increased internal and external expectations within a heavily restructured organisation and deliver key priorities as they get adopted in the future Community Strategic Plans and Delivery Programs.
As explained in its original IPART submission last year, Council has: reduced employee costs ($30M structurally removed within six months of which $26.1M is from Council’s General Fund) and materials and contracts ($20M structurally removed of which $13.6M is from Council’s General Fund) over the same period.
It capped capital works programs at $175M annually and sold at least $60M in property assets.
“In addition, Council has made wholesale changes to the executive and management teams, implemented tighter budget management controls and delivered a vast array of productivity improvements,” the council report said.
It said it had seen an increase in complaints about the levels of service.
“Our community have indicated that the level of service has dropped, whilst managers and staff are seeking to deliver the same service more efficiently and finding productivity solutions, the reality is that sustaining such a dramatic reduction in a short period has inevitably impacted service levels,” Council said.
Council secured $150M in commercial bank loans to resolve the financial crisis first announced in October 2020.
It reimbursed some and wrote off other internal “borrowings” from restricted funds that should not have been spent without either permission of the elected Councillors or the Local Government Minister, but the loans must be repaid within 10 years.
The IPART decision will be known in May.
Meanwhile, the Council is still pursuing another IPART rate increase – it has asked IPART to allow Council to increase its water, sewer and drains prices by 34 per cent.
That IPART submission is a completely separate process.
Merilyn Vale
Hopefully IPART will take into account the views of the majority of the community and deny the increase! Unbelievable! The smug look on the faces of these parasitic bureacrats and autocrat says it all!
I simply cannot understand how this Council can continue to request more money after their recent debacle.
They have shown they cannot manage the millions we give them,plus no doubt,being paid a huge wage themselves.
Do not let them get away with this,let them know we are against any rate/water rises
Meanwhile, the Council has asked IPART to allow Council to increase its water, sewer and drains prices by 34 per cent!!!! So the people running council now are as bad as the people who just got sacked for over spending by millions. Remembering Gosford Council was already overcharging residents for water, sewer and drains for years, now they are going to tack that back on, plus more.
Unelected non representatives of “the council” attempting to make long term financial decisions that will effect us all well after they have taken their large salaries and left us to pay for it.
Ipart let the ratepayers make their own decisions when this mob have packed there tent and left.
Can’t believe Council are asking for 34% increase in water, sewer and drains!!! When do any of us get anything like an increase in income of that amount! I just hope IPART are a little more realistic!
And why are we in this mess? Because someone in the Council went on a ridiculous spending spree, and got paid highly while doing so!
Trust is earned not a given. I’m not sure the Administrator and CEO have earned it! They are being paid shiploads of money and who is pulling their strings? The State government? Because it’s working in its favour the fire sale of the Gosford council building supposedly for a TAFE facility (believe it when it opens its doors for business but don’t hold your breath) a large block of land that made $120 million profit in 21 days that would have paid out the Banks loan. Another 4 sales like that and we would not have a debt! As far as we are aware no sale of assets has made a profit enough to pay down any debt. The Central Coast Council is using the restricted funds they castigated the Council for using what has changed? Except squeezing the poor ratepayers for more money and saddling us with more debt. They have not proven they are responsible money managers.
There is a ground swell of Central Coast residents that would enjoy saying goodbye to the Administrator and CEO (how did he get the job? Did he go through a selection panel like all Public Servants?) 34% rate increase unbelievable plus a 15% increase for the next 10 years unrealistic. Loosing money on every Council asset sales! Can we afford this dynamic duo?
Without going over all the issues that led to the Central Coast Council finding itself in an untenable financial position, including some decisions by the elected council which cost Council and which were not budgeted for, and then the Council using monies which were held for specific purposes (such as for new water & sewerage works) for general operations and which now have to be repaid to those funds. There is now a new management team in place with a very experienced administrator overseeing the operations. These people are supported by a great team of workers across the council, both office staff and outdoor workers. I have full faith in the new Council Management to get the Council back onto a sound financial footing. I think it is fairly well known that Gosford Council was not in the best financial state at the time of amalgamation. The costs of amalgamation were quite significant, and are possibly still ongoing. For these reasons I support the Council decision to apply to IPART for the continuation of the Rate Increase for a further period if it is seen as necessary. We have to remember that Central Coast Council is a large employer of workers from across the region.
i agree with Mike,The Administrator and the CEO….How did they get their job? Did they go thru the selection panel like all Public Servants? 34% rate rise and 15% FOR THE NEXT 10 YRS
THEY HAVE ALREADY BEEN TO IPART re the next 10 yrs an this is abhorrent
I am livid and emailing Ipart however its already been approved