Coronavirus crisis could cost Northern Beaches Council $16m
A confidential report has revealed how COVID-19 could cost Northern Beaches Council millions. It comes as CEO Ray Brownlee — believed to be on a $500,000 annual salary — and other top executives confirmed they would not be taking a payrise.
Manly
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A confidential financial report has revealed the impact the coronavirus could cost Northern Beaches Council millions in lost revenue.
It comes as the chief executive officer Ray Brownlee, believed to be on a $500,000 package, and his top executives have agreed not to take a payrise this year.
The report leaked to the Manly Daily reveals the losseswill come from the unexpected council rent and fee waivers for small businesses and the community to help them through the COVID-19 crisis.
Revenue losses will come from services closed or impacted by the pandemic and events cancelled, as well as a reduction of funds from carparking fees and fines.
The figures as of April 1 showed the health crisis could cost the council $25m. However, in a statement the council said the figure had been revised down to $16m as of April 14 — the Manly Daily has not been given access to the new estimates.
It is believed the reason for the lower figure is the NSW Government’s childcare package which will mean the council will not have to fund childcare for six months.
The figures the Manly Daily has seen work on assumptions that life will not get back to normal for at least six months.
For example the closure of the aquatic centres could cost the council $2.8m and Glen St Theatre, $527,000, after reduced running expenses are taken into account.
If the winter sports season is cancelled, the council will lose $253,000 in sports field bookings after taking into adjusting for the savings made on lighting, line marking and turfing expenses.
Projected loss of funds from and loss of money from carparking fees of $1.4m and fines of $1.6m, will also hit council coffers.
It comes as Cr Vincent De Luca called for council rates to be cut to support struggling residents, to be funded by cuts from the council’s “bloated bureaucracy”.
“Businesses across the northern beaches are closing,” he said.
“We have so many people in financial hardship.
“Council must show leadership and cut costs at all opportunities, by cutting a bloated bureaucracy.
“We need to rationalise the top heavy management levels.”
Cr De Luca said the CEO Ray Brownlee, believed to be on a salary of $500,000, earns more than the NSW Premier.
“What cost savings has council initiated to save money on staff and rationalise staff as a result of the COVID pandemic, seeing corporates, small business and not for profit businesses have had to?” he said.
Mayor Michael Regan said this is not the time to play politics.
“The executive team including the CEO, directors and executive managers have all taken a position not to accept any pay increase this year,” he said.
“Staff are also supporting a ‘Workplace Giving Program’, making voluntary contributions to the value of the award increase to fund local frontline charities.
“As the largest employer on the beaches with more than 80 per cent of staff locals, their households are hurting too with job losses and the like.
“Do councillors really want to hurt more our already suffering local economy by reducing earnings for local employees?”
Mayor Regan said the council was in a solid position to weather the budget impact of the crisis.
He said the plan was to manage the forecasted $100 million capital work programs by deferring some projects to future years, allowing the council to keep supporting local employees while delivering services to help our community through this difficult time.
“We know how tough this is on many in our community so we have simplified our hardship process to enable impacted ratepayers to defer rates payments and are exploring a write off of half the rate-peg increase to bring some relief to households and businesses doing it tough right now,” he said.
“We are all in this together and to that end, at the next council meeting I am asking fellow councillors to also join the staff and contribute the value of their annual pay increase to Council’s ‘Workplace Giving Program’, we need to show leadership and make a contribution for our community.”