Central Coast Council forecasts an improved operating surplus for financial year 2021-22

Central Coast Council has adopted proposed budget adjustments from the 2021-2022 Quarter 2 Business Report. This will move the operating surplus from $3.1 million to $6.3 million (excluding capital grants and contributions). 

The adopted adjustments proposed in the Quarter 2 budget review include:

• an increase of $2 million in operating income
• a reduction of $1.2 million in operational expenditure. 

The quarterly budget review statement shows a revised estimate of income and expenditure for this financial year, in reference to the estimates made in the Operational Plan for the same year. 

Council Administrator, Rik Hart said the increase in operating surplus is an outcome of Council’s decisive action and commitment to financial recovery. 

“Council’s Operational Plan sets out the achievements, goals and revenue policy, including estimates of income and expenditure. Council’s actions, including its productivity improvements show its ability to achieve what it set out to do,” Mr Hart said. 

Out of the 66 actions or performance indicators of the Operational Plan, 

• five are completed
• 44 are on track
• one has not commenced
• 16 are either delayed, on hold or have been closed, the majority of which are due to COVID-19 restrictions in place during Quarter 2. 

Mr Hart said Council’s focus continues to be on reducing expenditure, raising additional income, monitoring incoming cash flow, performing cashflow forecasts and ensuring a more sustainable cash preservation.

“This quarterly budget review statement plays an important role in monitoring Council’s progress against the Plan. While we have a long way to go, Council has continued to make progress in strengthening our financial position,” Mr Hart said. 

Water and Sewer Business Review

The delivery of an independent review (Structural Review of the Water and Sewer Business) of Council’s business model for its Water and Sewer operations has highlighted the complex and restrictive regulatory environment currently governing Council’s Water and Sewer operations.

The Review outlines three options that may resolve this complexity and offer opportunities to produce better value and return on investment for the Central Coast community in relation to the provision of Water and Sewerage services. 

1. Remove Central Coast Council’s Water and Sewer business from the Local Government Act. 
2. Amend the Local Government Act. 
3. Remove Central Coast Council’s Water and Sewer business from the Water Management Act. 

Council staff recommend that further analysis and consultation is required on each of the recommended options to enable an informed decision on the impacts, financial risks, and opportunities, before any consultation with the NSW Government.

Council Administrator, Rik Hart supported this sentiment and outlined that the Water Management Act, the Local Government Act, and IPART conduct conflicting asset valuations and that is not a fair comparison  

“I’ve made it clear I won’t sell Council’s Water and Sewer business as potential buyers can pay no more than the value determined by IPART, as this would mean that Council would experience a book value loss of $2.4B.”

“By comparison, the local government valuation for Water and Sewer and drainage assets net value is $3.78B, compared to IPART’s valuation of the asset at $1.4B.”

In 2020, the recommendations by the Audit Office of NSW's Report on Local Government to the Office of Local Government suggested that it should clarify the legal framework relating to restrictions of water, sewerage and drainage funds (restricted reserves) by either seeking an amendment to the relevant legislation or by issuing a policy instrument to remove ambiguity from the current framework. 

“This, along with the draft report out for consultation by IPART on the Review of Domestic Waste Management Charges should be part of the broader consideration for the Central Coast,” Mr Hart said.

“I believe both the IPART draft report and the Structural Review of the Water and Sewer Business should be considered, along with the recommendations by the Audit Office for the future of Water and Sewer business on the Central Coast.

Council will investigate options in both reports as well as any other options that they may identify as part of this analysis.

Council meetings will be held monthly with continued opportunity for public to participate

The amended Code of Meeting Practice has been formally adopted following consideration of all submissions and community feedback during the recent public exhibition period, with the separate Public Forum Policy also adopted.

The amendments to the Code of Meeting Practice included a change of frequency of Ordinary Council Meetings to now be monthly, with updates to incorporate state-wide changes to the Code of Meeting Practice Model as directed by the NSW Office of Local Government. Amendments also included the removal of the non-mandatory provision for Public Forums, which have instead been incorporated into the separate Public Forum Policy.

Council Administrator, Rik Hart said the updated documents reflect recent changes to the Model Code, provides operational savings and sets out the structure and governance by which members of the public are enabled to participate in Meetings of Council.  

“Updating Council’s Code of Meeting Practice has ensured it is contemporary, fit for purpose and provides for a $44,000 operational cost saving annually. By adjusting the frequency of Ordinary Council Meeting from twice a month to monthly, the use of Council resource is lessened and the running costs reduced,” Mr Hart said.

“The revisions in the Code seek to balance Council’s resource availability with the need to support the conduct of Council Meetings. This change is one of the many ways that Council has streamlined operations for improved efficiencies and cost saving in order to deliver financial stability and good governance.

“The opportunity for the public to speak at Council meetings is an important part of the process and reflective of the meeting principles for inclusivity. While the non-mandatory provisions for Public Forums was removed from the Code of Meeting Practice, they have instead been incorporated into a separate Public Forum Policy.”

Further details on the amended Code of Meeting Practice and Public Forum Policy are available to view on Council’s website: https://centralcoast.infocouncil.biz/Open/2022/02/OC_22022022_AGN.PDF

Strong Central Coast Plan taps into visitor economy

Council has confirmed how it will guide a shared vision for tourism development and destination management priorities in the region over the next four years with the adoption of the Central Coast Destination Management Plan (DMP) 2022-2025.

The DMP was developed over a four-month period in collaboration with Destination NSW, Destination Sydney Surrounds North, Darkinjung Local Aboriginal Land Council, NSW National Parks & Wildlife Service, Forestry Corporation of NSW, industry groups and local businesses, before being placed on public exhibition at the end of last year for community feedback.

Council Administrator, Rik Hart said the DMP outlines the community and Council’s shared vision for the Central Coast.

“Tourism is an important pillar for the Central Coast economic and employment sectors, and we want to see a thriving, connected and supported tourism industry that provides compelling visitor experiences, and positions the region as a premier sustainable tourism and lifestyle destination,” Mr Hart said.

“Through the DMP, Council facilitates the strategic direction and delivery of tourism. Focuses include generating sustainable visitation patterns by increasing visitor dispersal and growing off-peak visitation, growing visitor yield, creating high quality amenity for residents and visitors, and empowering a unified, connected and supported tourism industry.

“Since bringing the function of tourism marketing and management in-house, Council has received a number of accolades* for the Coast and propelled our region onto the world stage with a powerful Destination Central Coast brand that heroes locals, local products and our spectacular natural environment. 

“The DMP 2022-2025 supports the continuation of this strong brand and identifies shared responsibilities and co-ordinated actions for Council, local tourism operators, tourism funding bodies and other regional stakeholders, to ensure the industry sustainably grows into the future.”

In addition to the DMP, tourism activities on the Central Coast are guided by Council’s Tourism Opportunity Plan 2019-2024, which provides direction on public and private sector investment and activation opportunities.

*Council’s Marketing and Tourism team recently received a Bronze Award in the ‘Local Government Award for Tourism’ category at the NSW Tourism Awards 2021. Council also won a spot for the Central Coast as the only NSW destination named in Green Destinations’ international 2021 Top 100 Destination Sustainability Stories list; won ‘Most Compelling Itinerary’ in the NSW Top Tourism Town Awards 2021; and saw The Entrance named a Finalist in Wotif's Aussie Town of the Year Awards 2021.

Local community groups to benefit from Council Grant Funding 

Council has allocated $23,028.50 from its Community Support Grant Program to support six local community groups to deliver quality programs, projects and events that build local connections, celebrate and support the local community. These have been funded through existing and approved Operational Plan budgets.

The successful applications include:

1. Community Environment Network – promotion, catering, and venue hire for World Wetlands Day Breakfast with the Birds
2. Toukley And Districts Art Society Incorporated Community art workshops and classes
3. Crommelin Native Arboretum Incorporate – Pearl Beach Arboretum Ephemeral Art Trail 2022 
4. Peninsula Environment Group (PEG) – further enhancing Woy Woy Peninsula Community Garden facility and resources
5. Volunteer Marine Rescue NSW – Vessel Berthing infrastructure upgrade
6. Gosford Regional Community Services Incorporated – Central Coast Festival of Women

Council Administrator, Rik Hart said Council’s Community Support Grants Program is important in building connections and creating local solutions and initiatives.

“It’s important that we continue to deliver necessary financial and in-kind support to the local community, that allows them to deliver quality community activities,” Mr Hart said.

“These community activities have the ability to bring community together and further fosters a sense of belonging. Something I believe is more important than ever.”

To learn more and apply, visit centralcoast.nsw.gov.au/grants

Discussion Paper to be developed on Council’s Advisory Groups and Committees 

Council has resolved to develop a discussion paper on Council’s Advisory Groups and Committees to inform a future framework going forward. 

The Council resolution on 23 March 2021 to develop a framework for management of Advisory Groups, Working Groups and Networking Groups was impacted by the Public Inquiry into Central Coast Council’s finances, and an Order by the Minister for Local Government postponing the 2021 Local Government election for the Central Coast region.

Council Administrator, Rik Hart said the development of a framework should be considered upon the time an elected body is returned to Council. 

“I believe there is an opportunity to create some synergies not only between subject matter expert groups, but all key stakeholder groups that are impacted by future projects Council is progressing,” Mr Hart said. 

“It is unclear to me that the current committee structure is serving the purpose for which it was designed. More often than not, I see issues being raised that are either out of scope of the purpose the committee is established for, or an even stronger divide between key stakeholders on a particular issue, rather than working constructively together to resolve an issue. 

“That said, I’d like to thank the members of the community who have been part of Council’s Advisory Groups and Committees for their valuable contributions over the years and look forward to the development of this discussion paper to determine the best path forward.” 

Council will develop a discussion paper on the current committee structure; including but not limited to the governance arrangements/charters; length of term; membership; and legislative requirements, if any, providing a report back to Council for consideration by May 2022.     

Council to implement a Banner Policy

Council will develop a Central Coast Banner Policy that aims to celebrate the region’s great diversity, while creating of sense of community through the promotion of the arts, cultural activities and sporting events of public interest. 

The Policy will relate to the management and approval process for banners displayed in town centres across the Central Coast as part of Council’s annual program.

Council Administrator, Rik Hart said the Central Coast is a region of cultural and social diversity and the implementation of the Banner Policy can help to reflect that. 

“The Banner Policy should represent the region’s great diversity and outline the key fundamentals of the type of messages to be promoted to the community, including promoting local economic activity of special community related events,” Mr Hart said. 

Mr Hart said the motion to implement a Banner Policy at Central Coast Council results from media coverage on 25 January 2022 in relation to Council flying the Australian Flag.

“Media coverage incorrectly reported that Council chose not fly the Australian Flag on Australia Day as it may offend some people. This was incorrect and misleading,” Mr Hart said.

“The issue was the installing of the Australian flag banner on West Street, Umina for Australia Day, and I’m pleased that a Banner Policy will help the community take part in Council’s annual program of banner installation moving forward.” Mr Hart said.

Council will develop a draft Central Coast Banner Policy for all town centres and consult with the community providing a report back to Council for consideration by July 2022.  

ENDS