Central Coast Council budget adopted with projects deferred
It would be the most controversial budget adopted by Central Coast Council, with $23m in projects deferred or cut back due to COVID-19 impacts. Did your local project make the cut?
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Sacrifices have been made and the belt has been tightened in Central Coast Council’s budget and operational plan, meaning $23.3 million worth of projects have been put on hold.
The 2020/21 plan was officially adopted at Monday night’s council meeting, after council was given an extension due to COVID-19 impacts.
Chief executive officer Gary Murphy said the budget reflects the current climate, with council needing to “live within its means” while also delivering essential services, stimulating the local economy and minimising job losses.
The budget sees $564.3 million for essential services and $225 million for capital works, reduced from $248.3 in the draft budget with many projects placed on the backburner or heavily reduced.
The council’s original forecast deficit for 2020/21 of $32.5m has decreased to $13.3m due to expenditure changes in the face of the pandemic.
“We have been working hard to identify savings opportunities and part of that is in relation to recruitment,” Mr Murphy told the Express.
“We are proceeding with essential vacancies but holding other recruitment until we get a better handle on income.”
Mr Murphy said the council had cut back on areas such as staff overtime, however also identified other sources of income while also delving into more than $200m in developer contributions.
He stressed the situation around finances was “incredibly dynamic”.
“This is not a set and forget budget, none of us have experienced COVID before,” he said.
The council will see revenue losses of $8-9m due to COVID-19 impacts in 2020/21, following on from $5m in losses last financial year. This is the result of closures to services such as leisure centres, holiday parks, Laycock St Theatre as well as Central Coast Stadium.
There is also a major question mark on rates revenue, with many residents across the coast also feeling the financial sting of the pandemic.
Mr Murphy said while the council hadn’t received many hardship applications for rates, he expected to see more later this year once JobKeeper and Jobseeker payments finish.
“Traditionally we have seen six per cent of what we call rate delinquency,” he said. “With COVID that could increase. But at this stage we don’t know.”
The council has set a priority list of deferred projects that, if council frees up funds, can be carried out.
Mayor Lisa Matthews said with the impacts of COVID-19, council had to look at the draft budget with a fresh set of eyes on a number of occasions.
“The proposed plan shows financial responsibility to our community about what we can deliver within our financial means,” she said.
She acknowledged the impacts of COVID-19 and said at the time of amalgamation Central Coast Council had a surplus of $65m.
Deputy Mayor Jane Smith said there had been frustration among councillors and disappointment about some projects being deferred.
“The process has been as good as it can be,” she said.
Projects such as the upgrade to Carters Rd in Lake Munmorah and the Narara Skatepark have been taken out of the capital works budget and now await approval for external grant funding.
The Adcock Park redevelopment has been significantly reduced from $15.4m to $2.9m for 2020/21. The development has been split into two stages with $2.4m allocated to the amenities block to be completed in December, along with $500,000 for stage two designs, while stage two will start in 2021/22.
The budget was criticised by some councillors, with Cr Doug Vincent saying there was inequality among wards. The Budgewoi ward received 2.5 per cent of funds from capital works, while Gosford East received 5.3 per cent, Gosford West 5 per cent, The Entrance 2.3 per cent and Wyong 1.5 per cent.
Cr Kyle MacGregor described the budget as a “slap in the face and kick in the guts” to people of the coast. He said changes made since the draft budget was exhibited had been rammed through behind closed doors.
“This is a budget that will lead to economic ruin, job losses and business closures across the central coast,” he said.
He outlined the deferral of upgrading a toilet block in Wyong and fencing around a community facility, saying council should be focused on developing local jobs and infrastructure.
Cr Greg Best said council continued to burn cash and pointed out the councillors voting recently for both a pay rise and rate rise.
“You’ve tuned this place into an absolute circus,” he said.
Cr Louise Greenaway managed to score $100,000 in the budget for anti-vandal soap dispensers in toilets across the coast.
When it came to adopting the budget, councillors were divided and Cr Matthews used her casting vote to push it through.
Snapshot of deferred/reduced projects
– Upgrade Percy the Pelican statue
– Toukley Village Green upgrade
– Colongra sports facility development
– Terrigal Rotary Hall carpark upgrade
– Adcock Park redevelopment
– Council’s replacement for light vehicles, ancillary equipment and groundcare equipment
– Gosford Regional Gallery upgrades
Snapshot of projects forging ahead
– Terrigal Boardwalk – $5.1m
– Woy Woy Wharf – $5.7m
– Peninsula Leisure Centre – Heating, Ventilating, and Air Conditioning (HVAC) systems replacement – $4.2m
– Rogers Park amenities building, Woy Woy – $1.3m
– Del Monte Pl, Copacabana, road upgrade – $2.5m
– Water Trunk Main Installation – Mardi to Warnervale – $39m
– Warnervale Town Centre sewer infrastructure – $1.5m
– Sewer Pump Station renewal (Toukley) – $6.7
– Oceano St, Copacabana, road upgrade – $1.7m
– The Entrance Town Centre anti-terrorism bollards – $525,000
– Don Small Oval amenities and clubhouse – $620,000