Council debt continues to shrink

Central Coast Council Administrator Rik Hart in Chambers

The debt continues to reduce at Central Coast Council with the end of financial year figures for 2022-23 showing a combined long-term borrowings and short term loans totalling $285.6M.

This is made up of $104M in current borrowings and $181.6M in longer term loans.

Council is on track to pay off an emergency loan of $100M at the end of this calendar year.

In December 2020, the newly installed administrator Dick Persson and his then acting CEO Rik Hart signed up for two emergency loans, one for $50m and one for $100M, to get the Council through its cash flow crisis.

The $50M loan is also earmarked for an early repayment in a couple of years’ time.

The yearly financial report shows that Council’s total liability is $570M which includes the borrowings plus contract and lease liabilities (about $45M); payables of $88M and employee provisions of $58M; and other provisions of about $91M.

Council’s final 2022-2023 financial year results were presented at the October 31 Council meeting.

Administrator Rik Hart said it showed that Council had sustained its stable financial position for a second consecutive year.

“The NSW Audit Office conducted their formal review of Council’s consolidated financial statements and provided Council with an unqualified opinion – which means a ‘clean report’ was provided for Central Coast Council’s finances for FY22-23,” he said.

Council’s audited consolidated operating budget result showed a surplus of $35M.

Hart said this was a year-end result within the range one would expect from an organisation of Council’s size.

“Council’s audited financial results instil further confidence that Central Coast Council will be in a good position for an elected body to take back the reins in September 2024,” Hart said.

Council had investments and cash to the value of $760.5M at the end of the financial year.

See more about the 2022-23 financial report in last week’s article: https://coastcommunitynews.com.au/central-coast/news/2023/11/council-finances-are-looking-good/

Merilyn Vale

2 Comments on "Council debt continues to shrink"

  1. Michael McVicker | November 8, 2023 at 3:34 pm |

    why has no one been held accountable for the original mess to start with

  2. Ian Bennett | November 9, 2023 at 1:34 pm |

    thankyou to the people who took control from our unprofessional councillors

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