Minister signs improvement order

Local Government Minister Ron Hoenig has signed into action a Performance Improvement Order on Central Coast Council.

The PIO, first mooted on September 2, is meant to ensure the work undertaken in the four years of administration are not lost in transition to an elected council.

The new councillors will start their four year term with rules and regulations holding them back from making any decisions outside the “guard rails” as Administrator Rik Hart explained it.

He said the PIO, which would be in place for one year, was like having guard rails in place in case the horse bolted.

The PIO restricts the councillors to implementing the current operational plan and budget and other potential actions have to gain the permission of the Office of Local Government.

These include not being able to restructure the council or sack the CEO or change any staff delegations.

Despite administration for four years, the new council has to implement any outstanding recommendations from the Public Inquiry which was held in 2021 and the findings handed down in 2022.
On the day it became public, March 17, 2022, the former councillors were officially sacked.

In a letter to Hoenig agreeing with the need for the PIO, Hart said it would ensure that Council’s effective operation
was not unnecessarily disturbed through changes at the executive level and delegations.

“The requirement for concurrence of the Office of Local Government will ensure that changes are only
made if they contribute positively to the operation of the organisation,” Hart said.

“This will maintain stability at the executive level and will foster constructive working relationships to be developed between councillors and Council’s leadership team.”
He said the requirement to implement ongoing recommendations from the Public Inquiry, and the involvement of Council’s Audit, Risk and Improvement Committee (ARIC) in governance oversight and changes to Council’s priorities was necessary.

“This approach will ensure that the incoming Council remains focused on delivering commitments reflected in the Community Strategic Plan,” Hart said.
“The actions regarding ongoing consideration of the relevant financial benchmarks, and the requirement to consider the impact of decisions on Council’s long term financial sustainability, will mitigate the risk of the incoming Council making short term financial decisions that impact on Councils’ ability to continue to deliver services and infrastructure to future generations.

“This is a particular challenge for most councillors as the focus tends to be on responding to the demands of their constituents during their term.”
He said the requirement for regular and transparent financial reporting would ensure that Council remained accountable to the community regarding its financial position and any associated risks.
“Governance requirements under 2.1.3 will further support delivery of the of actions in the adopted Operational Plan and the maintenance of a sound financial position,” Hart said.

“The discipline regarding staff interaction and councillor requests will ensure that resources can remain focused on delivering adopted plans and not be unduly influenced by unreasonable councillor demands.”

The new councillors will be officially named in early October and their first meeting, where they will elect their mayor, is scheduled for October 8.