Central Coast Council financial crisis: What administration means for ratepayers
Coast residents are continuing to digest the council’s shocking $89m debt, not to mention the looming suspension of councillors. So where to from here? Here’s the latest and a breakdown of the suspension process.
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- Central Coast Council financial crisis: MPs react to suspension of mayor and councillors
It’s been two days since Local Government Minister Shelley Hancock announced she would suspend the Central Coast Mayor and councillors.
While councillors are madly preparing a case as to why they shouldn’t get the sack, many ratepayers are wondering what this all means.
With council unable to pay staff this week – and the State Government having to come to the rescue – will our essential services such as garbage collection and council-run child care centres continue? Will council be able to pay its staff next week?
At a council meeting this week, acting chief executive officer Jamie Loader said the focus is on freeing up cash for the day-to-day running of council and making sure essential services continue.
If Ms Hancock rejects the councillors submissions, she will appoint an administrator.
The coast is not new to the process of having an administrator, having gone through the process during the amalgamation of Gosford and Wyong councils in 2016.
The suspension does not include any staff members of council, so the day-to-day running of council – pending the cash flow situation – should continue.
If they manage to get hold of more emergency funds, it will be business as usual however it is expected that many non-essential services may have to cease for a period of time.
The Administrator will effectively act as the mayor and councillors, working closely with the chief executive officer.
The former Central Coast Administrator Ian Reynolds ran the council meetings with senior staff. When he ended his term of administration, he left the newly formed Central Coast Council with a $79m budget surplus.
The big questions is how has the council managed to now end up $89m in the red.
Mayor Lisa Matthews said she was disappointed with the notice of suspension.
“Despite repeated requests for meetings to discuss council’s financial situation, I have had no response from the Minister,” she said.
“Our 100 Day Recovery Action Plan has the unanimous endorsement of council and has been shared with the Office of Local Government. I can assure the Minister that we are addressing our financial issues.”
The Office Of Local Government’s suspension process:
• The council will be given seven days to respond and will have to table its response in an open council meeting, to be held on Monday.
• The council should provide its response to the notice of intention by resolution.
• The Minister is required to consider the council’s submission when making a decision.
• If a suspension order is made, it will be published in the Gazette and an interim administrator will be appointed.
• The interim administrator will be asked to table the suspension order at an open meeting and publish the order on the council’s website.
• During the suspension period, councillors are suspended from office and as such are not entitled to exercise the functions of civic office or receive any fee or other remuneration.
• The Division of Local Government will monitor the implementation of suspension orders.
• The interim administrator will complete a compliance report on the implementation of any
performance improvement order, if one is issued, and/or progress report on the suspension
period, if one is required.
• Interim administrators are required to prepare a final written report no less than 14 days
before the end of a suspension period.
• Each councillor and the general manager will be advised by the Minister when the suspension period has ended.