Coronavirus: Central Coast Council reveals initial financial impacts
The impacts of COVID-19 along with flooding and bushfires have had a severe impact on Central Coast Council, which was revealed in it’s latest quarterly financial report.
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Central Coast Council has revealed the initial financial impacts of the COVID-19 crisis.
At Monday night’s meeting, councillors voted to acccept the third quarter business report (Q3), which shows just how hard the council has been hit by not only COVID-19 but also flooding, bushfires and drought with events cancelled and services shut down.
The year-to-date operating financial position has an “unfavourable” variance of $19.4 million, with a surplus of $14.5 million, compared to a budget surplus of $33.9 million.
The Q3 capital works spend is $137.4m compared to a budget of $151.4m.
“It’s just going to get worse until we see rates come in and public health orders removed,” Mayor Lisa Matthews told the Express.
“At the moment businesses are frozen. Council’s ability to charge rent is zero, the community is not playing sport so we aren’t receiving any fees from sporting ovals and we have no derived income from places such as Laycock Street Theatre.
“Council still has to cover all costs and provide essential services, however we have lost the ability to charge and receive income.
The council recently sent out its rates notices and Cr Matthews said the return figures were not promising. Council is offering a “hardship” service for people unable to pay rates, along with not charging interest to people who are late to pay rates.
“At the end of the day the community has been hit hard by job losses,” Cr Matthews said.
“We can’t expect them to pay their rates on time and not put food on the table.
“Right now everybody is bleeding with gaping holes in budgets but we just need to do our best. Eventually people will catch up.”
Council’s chief executive officer Gary Murphy told councillors they were closely monitoring incoming rates compared to this time last year.
“We are looking at a reduction in the order, if current trends continue, of about $20m,” he said.
Mr Murphy said the council had brought on an independent third party to help devise a financial recovery plan with many initiatives in the works. He said the next few quarterly reports “would tell a different story altogether”.
“Nothing is off the table,” he said.
Mr Murphy said a meeting was being held this week to consider initiatives regarding staff.
Council has managed to retain all its staff to date, with some creative reshuffling of roles.
“There’s positives with this as well,” Cr Matthews said. “It gives people an opportunity to try something different and step out of their comfort zone.”
The council’s forecast to June 2020 is an operating deficit of $41.6m, along with a capital works decrease to $233.9m.
Meanwhile in a confidential session, council voted to take out a $50m loan with 55 per cent to service an old debt and 45 per cent to be put towards future projects.