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Central Coast Council crisis: Mayor Lisa Matthews fights to avoid suspension

Mayor Lisa Matthews has vowed she will not give up on the coast community and wants to get the truth out there regarding council’s financial crisis.

Central Coast Mayor Lisa Matthews is not going down without a fight. Picture: Sue Graham
Central Coast Mayor Lisa Matthews is not going down without a fight. Picture: Sue Graham

Central Coast Mayor Lisa Matthews is not going down without a fight.

Cr Matthews said she will continue to work through the council’s financial crisis until Local Government Minister Shelley Hancock tells her otherwise.

On Monday night, councillors adopted their response to Ms Hancocks’s suspension order issued for all councillors last week. The council has until close of business on Wednesday to respond before Ms Hancock makes a final decision.

“As mayor, I am here and I will continue to be here until the Minister makes her decision,” Cr Matthews said.

Councillors have been issued a suspension order over the council’s financial crisis.
Councillors have been issued a suspension order over the council’s financial crisis.

“I hope the Minister has a good look at our submission and the attachments. If she has any doubt that we should not go into administration, I hope that she picks up the phone and calls me.”

She said the submission focuses on the timeline of council’s actions since October 6 when councillors were called to an urgent meeting regarding the crisis.

“The hard, cold fact is we didn’t know,” she said.

“We need to show the Minister what has been done from the moment we found out. It outlines the forensic audit, the 100 day recovery plan, a freeze on overtime, running of essential services only, the employment of a new chief financial officer and establishing a finance committee.

Cr Matthews said “accounting practices” had caused the crisis.
Cr Matthews said “accounting practices” had caused the crisis.

“We haven’t just sat back. We are getting in there and looking at the budget, the executive leadership team are looking at where they can make savings. We have asked the State Government for money for the coastal erosion emergency works.”

Cr Matthews said they are also closely looking at the root of the cause.

“Something that has been repeated to me is that it has to do with financial management around accounting practices,” he said. “Whether that’s technology or inputting I don’t know. I knew there was a deficit but we didn’t know how far back it went.

“At the end of the day we rely on the experts. Unfortunately the information given to us wasn’t correct. The Audit, Risk and Improvement Committee didn’t see it, the NSW Audit office didn’t see it, however they did pick up on the issue with restricted funds.”

Cr Matthews said councillors are “not just sitting back”.
Cr Matthews said councillors are “not just sitting back”.

Cr Matthews said council was working hard to ensure the cash flow situation is more balanced in the coming months. She said with COVID-19 restrictions easing, more services would come back on line to generate income.

The council has also identified a $40.5m reduction in the capital works program for 2020/21.

Cr Matthews said the information Ms Hancock had received from Liberal councillors has been negative.

“I want to get the truth out there, we are not chaotic,” she said. “We have done some really good things.”

Cr Matthews highlighted some of the positives during council’s term, such as adoption of the Gosford Regional Library plans.
Cr Matthews highlighted some of the positives during council’s term, such as adoption of the Gosford Regional Library plans.

She highlighted council’s waste management strategy, affordable housing strategy, the Gosford Regional Library along with other positive decisions made by the council.

However, come 5pm on Wednesday once the councillors’ submission is sent, their fate lies with Ms Hancock.

“We don’t know what she will do then,” Cr Matthews said.

“But I am committed as far as the Minister will allow. I won’t be jumping ship, I won’t be resigning. I am continuing to work for our community.”

Original URL: https://www.dailytelegraph.com.au/newslocal/central-coast/central-coast-council-crisis-mayor-lisa-matthews-fights-to-avoid-suspension/news-story/0f41caa224342e7de5fd4d92152c4dc7