Central Coast Council to lodge official application for 15 per cent rate rise extension

More staff redundancies and service cuts will be a reality for Central Coast Council if the 15 per cent rate rise is not extended. Council is set to call a special meeting to officially lodge its plans.

Central Coast Council will remain on “tenterhooks” in the coming months, says administrator Rik Hart.

Service cuts and staff redundancies are still on the cards as the council is set to call an extraordinary meeting on February 3.

The meeting will see the council officially lodge its application to the Independent Pricing and Regulatory Tribunal (IPART) to extend the already approved 15 per cent rate rise beyond its limit of three years.

Mr Hart says the guaranteed revenue was crucial for the council beyond three years to ensure its financial sustainability into the future.

Central Coast Council administrator Rik Hart. Picture: Fiona Killman

“Things are going really well at the moment,” Mr Hart told the Express.

“Once we get the finances sorted, things will settle down. We will remain on tenterhooks until the final outcomes are announced from IPART.”

He said if the applications for both the increase in water and sewer charges and extension of the rate rise are approved, the situation at council will be positive.

“We won’t have to worry about things like more staff redundancies or cutting back services,” he said.

The application will see council lodge its updated long term financial plan and community strategic plan.

Mr Hart said the council was continuing to track well financially with the December results recording a profit and loss position of $12m ahead of the budget.

The council will hold an extraordinary meeting on February 3. Picture: Mark Scott

“We are still forecasting a surplus for the end of the financial year,” he said.

He said from a cash perspective, the council now had enough unrestricted funds to cover off its negative position in the stormwater and drainage areas.

It’s been a tumultuous 16 months for the council since news of the crisis broke in October 2020.

The council has seen major cuts to not only staff numbers but the capital works program and council services.

The 15 per cent rate rise over three years, approved by IPART in early 2021, was a key strategy to help the council out of its dire financial situation.

Mr Hart has continued to reiterate to the community, along with its political leaders, that three years is not enough and an extension is required to avoid further cuts.