Central Coast Council releases 2021/22 Budget with strategies to help battle financial crisis

“I have never been involved in a budget that had to make such massive cuts.” Administrator Dick Persson releases the draft 2021/22 Budget.

Central Coast Council has released its 2021/22 Budget with some hard truths. Picture: Mark Scott

It’s the document many have been waiting for – Central Coast Council’s 2021/22 draft operational plan/budget is out and it has some hard truths to tell.

However among the financial calamity there are projects to get off the ground as well as projected surpluses to be made.

Interim administrator Dick Persson AM has two weeks left in his role, with his three month extension allowing him to employ a new chief executive officer and release the operational plan which forecasts a $7m surplus for 2021/22.

“The $7m surplus is at a cost – people have lost their jobs and it is dependent on the 15 per cent rate rise being approved,” Mr Persson told the Express.

“I have never been involved in a budget that had to make such massive cuts.”

“But there are still some positives and a $173m capital works program.”

The draft plan came to Tuesday’s council meeting where it was adopted for community exhibition.

Interim Administrator Dick Persson AM.

The plan outlines the financial crisis – with the council’s accumulated debt of $565m over four years including the use of $200m in restricted funds – and details its impacts for the Central Coast community from a drop in services and events to a reduced capital works program. The council is projected to record a loss of $115m at 30 June 2021.

The plan states that there are two scenarios in play based on whether the Independent Pricing and Regulatory Tribunal (IPART) decides to approve the council’s application for a 15 per cent rate rise.

If approved, it will see an extra income of $22.9m to council.

With the rate rise, the projected profit at for 2021/22 is $49,934 and without the rate rise is $27,074.

“While borrowings have been arranged and savings have been identified, council’s position remains unsustainable without a rate variation,” the plan states.

New CEO David Farmer has a hard task ahead.

“Not only would basic services be in jeopardy, but council may be unable to meet its borrowing obligations. Without the rate variation council would certainly be unable to repay the funds unlawfully spent from reserves.”

Even with the actions to date such as major staff cuts, reductions in expenses and capital expenditure and $150m in loans, “long term financial viability is not achievable” without the rate rise.

The council has also outlined the exact implications of the financial crisis on services to happen with or without the rate rise. These include cancellation of events, longer time waits for development applications, reduction in maintenance programs such as ovals and water main flushing and longer waits for non urgent work.

The $173m capital works program for the 2021/22 Budget sees the sewerage network allocated $37.4m, closely followed by the roads at $34.2m and water supply at $27.9m. The smaller spend is on aquatic facilities at $102,000.

Aquatic facilities have received the smallest allocation in the budget.

The staggered four year capital works plan reveals the serious state of affairs at council.

Projects are outlined in a “four year capital works program” which shows the harsh reality of the council’s situations picking out the most important jobs to be done over the next year.

Projects pushed back over the next four years include the recreation facility developments at Lake Munmorah and Colongra as well as construction of ex-HMAS Adelaide Memorial at Terrigal Haven and a major upgrade of Umina Skate Park. Region-wide water main, sewer network and sewer pump station programs have also been pushed back.

Here’s a snapshot of what’s been given the green light for 2021/22.

Grant funding will help start the construction of Gosford Regional Library. Picture: Central Coast Council

2021/22

– New Gosford Regional Library – $3.7m

– Upgrade and renewal of Visitor Information Centre, The Entrance – $2.3m

– Renovate food and beverage outlets a Central Coast Stadium – $300,000, along with a merchandise outlet – $34,000

– Renovate cabins and guest facilities at Toowoon Bay Holiday Park ($250,000), Norah Head Holiday Park ($220,000), Canton Beach Holiday Park ($200,000) and Budgewoi Holiday Park ($180,000)

Vital works as well as new food, drink and merchandise outlets are planned for the stadium. Picture: Sue Graham

– Construction of Cell 4.4 Buttonderry Waste Management Facility, Jilliby – $5.3m

– Mardi Water Treatment Plant Major Upgrade – $6.8m

– Shared Pathway construction at Magenta – $2m and Tuggerawong Foreshore – $1.4m

– Adelaide Street Oval Sportsground Amenities upgrade – $1.4m

– Kariong Skate Park renewal – $300,000

– Gosford Olympic Pool renewal program – $102,000

– Gosford City Car park – introduction of online customer payment portal – $50,000

ROAD UPGRADES

– Del Monte Pl, Copacabana – $2.5m

– Louisiana Rd, Hamlyn Terrace – $2.5m

– Region wide road resealing – $2.3m

– Old Maitland Rd, Mardi – $1.9m

– The Ridgeway, Lisarow – $1.8m

– Tramway Rd, View St and Elgata Ave, North Avoca – $1.5m

The Ridgeway at Lisarow is set for an upgrade.

– Steyne Road, Saratoga – $1.4m

– Davistown Rd, Davistown – $1m

– Ocean Beach Rd and Rawson Rd intersection, Woy Woy – $1m

– Grandview St and Bonnieview St intersection, Long Jetty – $954,000

– Lushington St, East Gosford – $940,000

– Springwood Street, Ettalong Beach – $910,000

– Wisemans Ferry Rd, Somersby – $860,000

– Lakedge Ave, Berkeley Vale – $837,000