Central Coast Council rate rise extension not supported by local MPs

He put out a call for local leaders to support extending the three year rate rise, but Central Coast Council Administrator Rik Hart is on his own.

It appears Central Coast Council Administrator Rik Hart has been left in the cold when it comes to gaining support from local leaders to extend the 15 per cent rate rise.

Mr Hart has reiterated calls for support from leaders, after he called for an urgent meeting with the Independent Pricing and Regulatory Tribunal (IPART) to discuss the council’s intention to extend the already approved 15 per cent rate rise beyond three years.

Central Coast Council Administrator Rik Hart

He said this would ensure “certainty of revenue” as the council continues to dig itself out of its financial crisis which has seen a massive accumulated debt of $565m over the past four years.

“It is unfortunate that other leaders in the community do not seem to grasp the severity of the situation and they have argued against a rate increase without any realistic suggestions for increasing revenue or decreasing costs,” Mr Hart said.

“Because of this, this has no doubt contributed to IPART’s decision to limit the rate rise to three years.

“This doesn’t go far enough to provide long term financial stability for council and impedes council’s ability to plan for the future, deliver major infrastructure and enter into funding agreements that ultimately benefit the coast community.”

Local Labor MPs, including Wyong state Labor MP David Harris; The Entrance state Labor MP David Mehan; Gosford state Labor MP Liesl Tesch; and Swansea state Labor MP Yasmin Catley, have joined forces to oppose the extension.

“We have called on the NSW Government to extend repayments of restricted funds, to pay for the full cost associated with amalgamation and to end cost shifting more and more onto ratepayers of the Central Coast,” Mr Harris said.

“Council has three years to demonstrate it has its financial house in order and that should include assistance from the NSW Government whose merger policy has added to the woes of ratepayers.”

Central Coast Parliamentary Secretary Adam Crouch said “rate rises should be used as a last resort.”

“I do not support Central Coast Council treating a rate rise as an easy option to make money fast,” he said.

“Council needs to look at every option to avoid putting its hands in the ratepayer’s pocket again.”

Rate rise protest outside Central Coast Council

Council adopted its operation plan and budget last week, with the long term financial plan prepared on the presumption that the rate rise will be extended.

Mr Hart said this was done in order to make the financial plans work. He said if the council did not receive certainty of revenue beyond three years it would affect its ability to achieve long term financial stability.

The council will start consulting the community on the proposed extension before the end of the year

Central Coast Council building (formerly Gosford Council) at Gosford.pic Sue Graham

EARLIER

Central Coast reacts to 15 per cent rate rise

On May 18, 2021

Central Coast residents are speaking out after a 15 per cent rate rise was approved across the region.

On Monday, the Independent Pricing and Regulatory Tribunal (IPART) approved Central Coast Council’s request for the rate rise to help council out of its financial crisis.

IPART has approved the rate rise over three years, despite the council’s application for the one off rate rise to remain permanently in the rate base.

Will and Jen King, of Terrigal, said they were disappointed with IPART’s decision.

“It’s frustrating for the community,” Mr King said. “We are now having to pay for the council’s stuff up. That’s what most people are thinking.”

Jen and Will King, with their son, Sebastian, 6 months, and pug Monty. Picture: Justin Lloyd

The couple have owned a house in Terrigal since 2018 and have started a family with their six month old son Sebastian.

“It is really unfair given it wasn’t the community’s fault,” Mrs King said.

She said when she heard about the $565m debt she was shocked.

“It’s an unbelievable amount of money,” she said.

RELATED: Administrator’s parting shot at councillors on last day at council

Over the past six months former Administrator Dick Persson has been reiterating that a rate rise was crucial to help the council out of its financial hole as it faces an accumulated debt of $565m over the past four years. He said the alternative was further cuts to council services.

Dick Persson AM said without the rate rise, more council services could be cut.

He maintained that once rates harmonisation comes in, the rate rise will mean an average of $7 more per week for people in the former Gosford council area and a reduction of around $3 a week for former Wyong council residents.

Newly appointed Administrator Rik Hart welcomed IPART’s decision, however said it wasn’t enough to ensure “long term financial sustainability”.

“IPART’s decision of only allowing a special rate increase for three years is somewhat disappointing given the financial crisis we are in,” he said.

“Whilst the increase gives us short term stability, it doesn’t provide for long term financial sustainability.”

Central Coast Administrator Rik Hart.

He said the decision made it hard for the council to plan for major infrastructure.

“We will need two more IPART decisions in the next three years,” he said.

“This will result in two further years’ work of consultation, continuing to cause complications and instability for the organisation and the community.”

Central Coast Parliamentary Secretary Adam Crouch described the rate rise as “completely unfair”.

“Unfortunately the rate rise is not a decision for the NSW Government to make, and if it was a decision for the NSW Government to make, the Local Government Minister and I would not have allowed this to occur,” he said.

“It’s completely unfair for ratepayers to have to pay for the mistakes and failings of the councillors and council senior staff.”

Central Coast Parliamentary Secretary Adam Crouch said the decision was unfair for residents. Picture: Troy Snook

Central Coast Council has an accumulated debt of $565m. Picture: Mark Scott

Mr Hart said in December 2020, council had to source commercial loans so they could fund a reduced capital works program and pay creditors.

“Those commercial loans required council to commit to terms and conditions which included assets sales, reduction in costs and a reduction in staff numbers,” he said.

“There was no ‘bail out’ from the NSW Government. It was said from the beginning that without a rate increase there would be further service reductions and assets sales, and sadly the community is already witnessing what this looks like.

“We continue to hear from the various members of parliament of their opposition to the rate increase, however once again they offer no alternative.”