Council to apply for eight per cent rate rise

Central Coast Council has decided to apply for a "special rate variation" which would increase rates by eight per cent.

Interim administrator Mr Richard Persson resolved at an extraordinary meeting on November 26 to notify the Independent Pricing and Regulatory Tribunal of its intention to apply for a one-off variation.

The meeting was held in time to meet the Tribunal's November 27 deadline.

Prior to the sacking of Gosford Council in 2016, residents were told by the NSW Government that amalgamated councils, including Central Coast Council, would not be entitled to apply for special rate variations.

Mr Perrson said notifying the tribunal did not necessarily mean the application would proceed but, if an application was not lodged, the opportunity could be lost.

The eight percent adjustment, in addition to a two percent rate increase already authorised, would apply from 2021-22 financial year and remain in the rate base for seven years.

The application for a rate rise was proposed by Mr Perrson as part of a number of measures being considered to address Central Coast Council's cashflow issues.

"I want to assure the community that this is not a done deal," Mr Perrson said.

"It remains one of the options on the table," he said.

"We need to keep our options open here as a rate rise may be needed to ensure our community can continue to receive they services they want and need."

He said the Tribunal was "completely independent" and the community would be consulted on any proposed rate rise.

"We are exploring all other options as well including the sale of assets, borrowings, a reduction in our management structures and restrictions on spending, which will all help our bottom line."

Mr Persson appointed a chief operating officer at the previous council meeting held on Monday, November 23, as a result of the "big planning and operational issues" the council was facing.

He appointed Mr Malcolm Ryan to the position for three months.

He said Mr Ryan was one of the most respected planners in the state and the appointment should not be interpreted as a lack of confidence in existing planning staff.

Council's recently-appointed chief financial officer Ms Natalia Cowley told the meeting that Central Coast Council had secured a $6 million loan at a competitive rate from a commercial lender, and was negotiating a $50-$100 million capital works loan.

SOURCE:

Media release, 26 Nov 2020

Richard Persson, Central Coast Council

Central Coast Council item 2.1, 23 Nov 2020