Community activist Kevin Brooks has slammed Central Coast Council for its plan to extend the “temporary” 15 per cent rate hike approved in 2022.
“The temporary special variation was granted by IPART for short term emergency purposes, principally the repayment of emergency loans, in the wake of the Council’s 2020/21 financial crisis,” Brooks said.
“It was only allowed for 10 years and is due to end in 2030/31.
Kevin Brooks
“Central Coast Council has, however, recently published a Long Term Financial Plan that projects future deficits without an extension of the ‘temporary’ rate rise, and has stated an intention to extend it permanently.
“The Draft Operational Plan presented at the April 23 meeting is based on the assumption the rate hike will be extended.”
Speaking at the public forum prior to the meeting, Brooks said there was an expectation in the community that the money currently being used to repay emergency loans would be returned to ratepayers once those loans had been repaid.
He said Council would not need to extend the rate hike if it were using the temporary 10-year period to “put its house in order”.
“Council should be improving management performance and organisational culture,” he said.
“It should be improving efficiency, productivity, and prioritisation.
“(Instead), having failed to address underlying problems within the organisation, Council’s only plan seems to be that of maintaining present course until the money runs out, then asking IPART for another bail out.
“The are no grounds for assuming IPART will agree to this, and no Plan B if it does not.”
Brooks said IPART granted the exact amount, and for the exact 10-year period, that Council applied for.
“In 2021/22, this Council was bailed out by ratepayers,” he said.
“Thanks to ratepayers, Council ran a surplus that year in excess of $40M.
“This year, that surplus is forecast to be just $8M.
“And next year’s surplus is already being revised down, despite the fact that Council will be receiving 40 per cent more from general rates and water rates that year than just four years earlier.
“Council will be drowning in a sea of red ink by the time IPART’s temporary rate variation expires.
“The temporary rate hike was only approved for short term emergency purposes such as the repayment of loans; IPART specified a condition that more than 40 per cent of the rate increase had to be spent repaying emergency loans.
“Once those loans are repaid, Council should no longer need that money.
“This Council needs leadership, not more rate hikes.
“It needs to change course before its approved financing runs out.”
Will Kevin be putting his money where his mouth is and running for council office in the upcoming elections?
Or will he continue to criticise from the safety of the sideline?
Is this the same J Smith, ex Mayor of the failed Central Coast Council?
If so, maybe you should declare your aspirations regarding the next elected council.
Mr Brooks as a resident, and seemingly a well informed resident, has every right to raise these issues x
I agree with Kevin – the council should not be extending this. This was to repair the budget, not an ongoing revenue increase
I’ve not yet received a satisfactory explanation of how it was possible for the restricted funds to be spent in the first place. The Act requires the elected body to agree to request permission from the Min for Local Government to spend those funds on other projects or for any other purpose. That never happened.
Placing the Council’s under administration has been a failure. As a councillor I was prepared to seek the answers that the community deserve to hear.
I reported a large damaging pothole on the Ridgeway last Monday evening yet the bike track from North Entrance to Toukley is extended dayly at fenominal expense given the amount of concrete pavement and massive sandstone retaining walls let alone the machinery costs.
For the benefit of all the residents on the Central Coast let’s hope that Kevin Brooks does stand for Council as his articles are outstanding and deserve to be in print.
To the average resident like myself he seems to “Hit the nail on the head”.
I take Jeff Sundstrom’s comment with some empathy for all the old Councillors but I feel they should have all respected Troy Marquart and particularly Rebecca Gale’s integrity by resigning with them, it may have resulted in a different Public Inquiry result.