Gosford and Wyong council amalgamation cost hits $63m for Central Coast Council

A council report has revealed the massive costs of amalgamating Gosford and Wyong councils … and it’s far from over.

Council has revealed the massive costs of the 2016 amalgamation. Picture: Sue Graham

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Central Coast Council has recorded $63 million in costs for the amalgamation of Gosford and Wyong councils.

A council report, tabled at Monday’s meeting, revealed the massive costs involved in the controversial 2016 amalgamation.

However, the direct cost to council has been $38.7 million following the State Government’s $10m “new council” input as well as $10.4m set aside by the former councils to upgrade their IT systems.

the council’s chief executive officer Gary Murphy said the majority of the costs, around $42 million, had been consolidation of the council’s core systems.

The current cost of the amalgamation has soared to $63 million. Picture: Mark Scott

The report reveals that as of June 30, 127 of 173 projects and 650 of 790 individual actions in the amalgamation process had been completed.

The remaining work relates to the completion of the consolidated Local Environment Plan (LEP) and Development Control Plan (DCP), rates harmonisation and the introduction of new IT systems.

Deputy Mayor Jane Smith said the figures were “underestimates”.

“The cost of the amalgamation has been significant for council far above what the State Government allocated,” she said. “There is a lot of work going on with the staff, new systems and processes.”

Deputy Mayor Jane Smith said the diversity and character of areas needed to be highlighted. Picture: Sue Graham

She highlighted areas for improvement in the amalgamation including recognising characteristics and diversity across the region instead of the “one size fits all approach”.

Cr Doug Vincent was scathing of the process, saying residents in the northern parts of the coast did not ask for amalgamation and have suffered as a result.

“The amalgamation process has not worked,” he said. “The vast majority of residents want it turned back.

“Residents in the north pay higher rates, have lower land values … but budget after budget money heads south.”

He said many Queensland councils have voted to de-amalgamate within six years of amalgamation.

Cr Vincent said residents of the north have suffered as a result of the amalgamation. Picture: Peter Clark

He said money for projects was directed south to the former Gosford council area.

Cr Greg Best said council needed to give it 10 yeas before deeming it a success or failure, however pointed out “dysfunctionality” among councillors who vote for rate and pay rises during the COVID-19 pandemic. Later in the meeting, an attempt to overturn the council’s recent decision for a pay rise was lost in a firey debate which divided councillors.

“It’s not the corporation that’s the problem, it’s the people that run the corporation,” Cr Best said.

When questioned about the positives of the amalgamation, Mr Murphy said the internal new IT systems had been beneficial across the business and also allowed staff to work from home during the pandemic.

He said areas for improvement were developing the consolidated LEP and DCP to make life easier for residents.

“I can understand frustration in community but we are third largest council in NSW. It is a massive bureaucracy we need to harmonise,” he said.

Cr Chris Holstein said he had noticed a big change in terms of accessing grants from the state and federal governments being the third largest council in NSW.

“There are further opportunities for us,” he said. “I have anticipation we will be better off to attract more funds to soften the blow to our ratepayer.”