Central Coast Council has posted a modest surplus for a second year in a row, testament to the due diligence which has, and will continue, to be applied to ensure the organisation is in good shape when Councillors return in late 2024.

This second year of surplus follows two large losses in the previous two years, indicative of the strengthened and stable position Council is in now.

Council had budgeted for a surplus of just over $7M but has achieved a slightly larger surplus of $35M – achieved partly to an unbudgeted early payment of the government Financial Assistance Grant of $18M.

Council CEO David Farmer said while Council is now out of crisis, it now moves into a similar phase to most NSW local governments, with ongoing challenges where costs are growing at a faster rate than the rate peg.

“Ongoing diligence will be required to maintain satisfactory financial performance – including paying down the emergency loans taken out at the end of 2020.

“Sound financial management, which has included achieving surpluses, considered asset sales, and seeking external funding to assist our capital program, will allow the largest of our emergency loans to be paid off in full in December this year, with the plan to pay off the second loan in full in November 2025.”

Mr Farmer said Council has met key government benchmarks for operating results and cash levels, and Council’s audited financial statements were delivered on-time this year for the first time since the merger, and indication of Council’s growing competence.

“It should be noted that the audit by NSW Audit Office is more than just finances, it also includes a review of IT and Cyber security, governance processes, payroll, procurement and asset areas.

Mr Farmer added that partly a result of achieving surpluses, Council’s cash position also continues to improve with total cash increasing year on year and adequate unrestricted cash being maintained. As at June 2023, Council held $760M in total cash, with $95M of this being unrestricted. 

“As mentioned previously some of this unrestricted cash will now be used to pay down the one of the emergency loans early.

“We manage infrastructure assets valued at $11.5 billion on behalf of the Central Coast community, so the lion’s share of our budget is taken up on maintaining, operating and renewing these assets. Budgeting for surplus results within 1-5% of the almost $800 million annual operating budget means we have some allowance for unexpected impacts and some resources to apply to changing community changing community needs.”

Council Administrator Rik Hart said as he has repeated many times, Council is focused on ensuring the organisation is in a stable financial position for when a re-elected Council is in place at the end of 2024.

“I would like to see people who are committed to maintaining the financial stability that is now in place for Council, stand as councillors for Council. It is a tremendous opportunity to give back to the community and work with a fantastic team at Council.

“The first information session we held for prospective councillors a few weeks ago attracted some 50 people. I hope we will see those who want to take the next step and find out more, attend the next two sessions in late March and July in 2024.”

Mr Hart added that Council needs to continue to operate business as usual until, and after, the new Council is in place, which includes continuing with community consultation on projects, being responsible in where ratepayer’s money is allocated to, and presenting the Central Coast as a viable place to invest in - whether it be for housing, business or tourism.