Central Coast Council lodges application to extend current rates until 2031

Central Coast residents could be paying for council’s financial mismanagement until 2031. It comes as council applies to maintain the current rates for a further seven years.

Central Coast Council has made its final move to extend the current rates – which were raised by 15 per cent in 2021 – for a further seven years.

The council, which continues to crawl its way out of a $565m debt, held an extraordinary meeting on Thursday to push through its application to the Independent Pricing and Regulatory Tribunal (IPART) to maintain the current rates until 2031.

Administrator Rik Hart said the move was vital for council to be able to maintain services, retain staff, pay off emergency loans from 2020 and get back to financial stability.

“There are no more rate increases,” Mr Hart said.

“The rate increase that occurred last year will be maintained. Maintaining the rates at current levels means council can maintain services, continue productivity improvements and meet debt repayments.

Central Coast Council's CFO Natalia Cowley, Administrator Rik Hart and CEO David Farmer after the meeting on Thursday.

“This is not a year on year increase, we are asking that IPART retain the status quo for a further seven years.”

The 15 per cent rate rise, brought about due to the financial crisis, was approved by IPART in May 2021 for three years and equates to an additional $26m in income per year.

Mr Hart said that $26m was at risk of being lost by 2024, which would see further cuts to the organisation which has already gone through major staff and service cuts, asset sales as well as a reduced capital works program.

A council report has outlined the breakdown of cuts if IPART rejects the rate extension.

“Based on the immediate and long-term financial position of council, if the special variation does not proceed, significant service cuts to Council services will be required to commence

immediately with a further reduction of $16.4 million in employee costs and $11.5 million

in materials and services in 2024-25,” the council report states.

Bensville resident Kevin Brooks said locals are against the seven year extension.

Bensville’s Kevin Brooks, who is a member of the Protest Against Extreme Rates of the Central Coast group, criticised the council’s for not listening to the community and said the only “discernible priority” in the raft of documents council adopted as part of its application to IPART “is slugging the ratepayer”.

“Public engagement has become a tool for hard sell and persuasion rather than genuine consultation,” he said.

“But the community hasn’t been fooled. Even the Council’s handpicked sample group, who were fed spin and propaganda before being asked their opinions, rejected the rate hike option.

“The community has spoken and it is time to put their interests above those of a senior bureaucracy that both caused and benefited from the original deficits.”

Council’s chief executive officer David Farmer said a significant part of council’s financial recovery was the 15 per cent rate rise.

The council has forecasted a small surplus for the end of the 2021/22 financial year.

“However we needed 10 years to service loans and maintain the financial position of the organisation,” he said. “If we don’t have that certainty of income going forward … that places services at threat.”

Mr Farmer said the council had managed turn its position around in the Covid environment and was heading towards a $3m surplus at the end of this financial year.

Mr Hart said in terms of downsizing in such a short time, the council had gone through the largest of any in Australia.

He said if IPART approves the seven year extension, locals could look to a “strong period of stability and further productivity gains”.

Mr Hart said community consultation had been carried out and residents made it clear they wanted their services maintained. He said he was confident IPART would approve the application.