Central Coast Council: Community consultation opens on proposed rate rise

It’s the community’s turn to have a say on either a 10 or 15 per cent rate rise – however the alternative option to get Central Coast Council out of trouble is not ideal.

A rate rise or cut in council services – it’s time for the community to have a say.

If a rate rise is not implemented across the Central Coast, “harder decisions will have to be made”.

These are the words of Central Coast Council’s acting chief executive officer Rik Hart as he states that council services could be significantly reduced or eliminated if rates don’t increase.

It comes as community consultation opens on the proposed 10 or 15 per cent rate rise to help council out of its financial crisis.

The council has announced it has alerted the Independent Pricing and Regulatory Tribunal (IPART) of its intention to apply for a Special Variation (SV), with two options floated.

There will either be a one-off 10 per cent rate rise remaining in the rate base for seven years or a one-off 15 per cent rise, remaining permanently in the rate base, which would include the 2021/22 rate peg of 2 per cent.

Central Coast acting CEO Rik Hart and interim administrator Dick Persson AM.

Mr Hart said he understood community concern about paying more rates but the move was vital for council’s long-term financial security.

Late last year, interim administrator Dick Persson revealed the extent of council’s financial crisis including an accumulated debt over the past four years – including funds required to pay back the use of restricted funds – of $565m.

“We have been open with the community about our financial situation and are taking significant steps to help our bottom line,” Mr Hart said.

“We are selling assets, reducing staff numbers and materials and contracts, reducing the capital works program, looking at fees and charges and we have been able to secure further loans.

If a rate rise is not implemented, it could mean the end of many council services. Picture: Mark Scott

“The last thing we want to do is put more burden on our ratepayers. But if we do not have a substantial increase in our rate income as well, then even harder decisions will need to be made.

“For our community that would mean a significant reduction or even elimination of services that they need and rely on us to provide. Our first priority has to be the repayment of restricted funds, which were unlawfully used, so that does not become a burden for future generations.”

Mr Hart said the community need to have the conversation.

“We want to hear from as many residents and ratepayers as possible,” he said.

“I urge all community members to keep an open mind, consider the information put before them and to provide feedback over the coming weeks.”

Following consultation, the issue will come to the February 8 council meeting where Mr Persson will decide whether to formally lodge the rate rise application to IPART.

Peninsula Chamber of Commerce president Matthew Wales. Picture: Troy Snook

The Peninsula Chamber of Commerce has expressed its concerns over the rate rise.

“The Peninsula business community is bitterly disappointed and deeply concerned with the staggering operating losses of over $200m and accumulated debt of $565m racked up by Central Coast Council,” Peninsula Chamber president Matthew Wales said.

“These are numbers that the ordinary business person is struggling to come to terms with and the potential implications this will have on the delivery of services to the business community”.

Mr Wales said the coast had already seen a “dramatic drop in maintenance not only in our town centres but also across our community including parks and reserves”.

The “Protest against extreme rates of Central Coast Council” group is holding another protest at the end of the month.

“Everywhere you look we have grubby streets, overgrown parks and badly maintained roads,” he said.

“Landlords and business operators are already doing it tough coming out of the COVID-19 disaster so the last thing we need is a rate hike that will add a further layer of financial burden on business people”.

When the idea of the rate rise was initially floated a group called “Protest against extreme rates of Central Coast Council” emerged on social media and has grown to more than 5000 Facebook members.

The group held a protest against the rate rise outside council last year and have another planned at the January 27 meeting.

Daniel Harrison is against a rate rise.

Group spokesman Daniel Harrison, of Wadalba, said the group aim to form plans and take action against rate hikes and irresponsible fiscal management within the council.

“The community is not going to stand by and cop a 15 per cent rate rise,” he told the Express.

“At the end of the day this is mismanagement by council. There seems to be a systematic failure on so many levels, even beyond the merger.”

Mr Persson said once rate harmonisation comes in this year, a 15 per cent rate rise would result in a $7 per week increase for the former Gosford council area and a decrease of $3 a week for residents of the former Wyong area.

He said he lost more sleep over the 300 staff due to be cut from the organisation.