Draft Financial Report shows Council on way to financial recovery

Council has presented the preliminary draft 2020-2021 Consolidated Income Statement for Central Coast Council, which covers the period from 1 July 2020 to 30 June 2021.

The draft report shows Council’s operating result before capital amounts is a deficit of $60.7M compared to the Q3 forecast deficit of $115.1M and FY20 deficit of $88.7M.

Operating income was $541.9M, $0.1M under the Q3 forecast and $13.5M up on FY20.

Operating expenditure for the year ended 30 June 2021 of $602.6M was $42.8M under the Q3 forecast through savings in restructure costs and tighter control over general expenditure and $14.6M under FY20.

Council Administrator, Rik Hart said the preliminary draft report shows Council is moving toward financial recovery.

“Council has managed to reduce expenditure and maintain income resulting in a small surplus, which is excellent news for the short-term stability of the organisation,” Mr Hart said.

“However, Council’s long-term financial sustainability is not yet assured. In three years’ time we will be facing an annual income loss of $25M which is why we will be speaking with our community about the next Special Variation submission to the Independent Pricing and Regulatory Tribunal (IPART).

“Without maintaining the 15 percent special variation for the life of the 10-year Long Term Financial Plan, Council may again find itself in a dire financial situation.”

Council commences new monthly financial reports

Council is providing a clear line of sight for the community into its financial management with new monthly financial reports now available on Council’s website.

Council Administrator said the finance monthly reports provide consolidated financial information relevant to the operations, capital expenditure, funding and cash position of Council.

“We are delivering on the promise to the coast community about being transparent about our financial management and sharing information regularly about Council’s financial position,” Mr Hart said.

The monthly financial reports cover the key areas of Council’s finances including year to date trading position for the consolidated entity, water and sewer funds and general/drainage/waste funds; consolidated entity summary commentary with revenue and expenditure graphs; detailed consolidated results with commentary; summary capital expenditure by each Council Directorate and funding source; cash and investments and borrowing position; year to date cashflow forecast to actual; and restricted and unrestricted funds position.

Commentary is provided within each monthly report to enable ease of understanding of the information.

Nearly 90 percent of Development Applications determined

Council has in place controls to guide land use and planning across the Coast. For the January to June 2021 period, 1,613 development applications were lodged, and a total of 1,437 development applications were determined.

Of the 1,437 applications determined, a total of 44 had a variation in development standards (refer to agenda papers). 42 were determined by Central Coast Council and 2 were determined by the Local Planning Panel.

A development activity report that provides an overview of development activity, statistics and trends for the Central Coast will go to Council in September 2021.

Draft Water Security Plan endorsed for community feedback

The draft Central Coast Water Security Plan – our long-term plan to secure the Central Coast’s water supply – has been endorsed by Council to go on public exhibition for 28 days from 31 August 2021.

Council Director Water and Sewer, Jamie Loader, said that there are three main pillars to the plan.

“Firstly, we will aim to conserve and use water efficiently across the whole of the Central Coast,” Mr Loader said.

“Secondly, we will make the most of what we’ve got and maximise the potential of our existing water supplies, so we are able to delay constructing new supplies of water until further down the track.

“The first two pillars will buy us time and defer large expenditure but cannot sustain the Central Coast’s water needs forever.

“The final pillar is all about addressing the uncertainty of the future. While we have run simulations and developed models to create our demand forecasts, the truth of the matter is simple: we don’t have a crystal ball to tell us exactly what is going to happen – we could experience a long and severe drought in the next ten years… no one can predict this.

“Because of this, we will develop new supplies of water – such as desalination and purified recycled water – that don’t rely on rainfall, for an adaptive future. While these items won’t be delivered until they are needed, we need to plan for them now so we can respond appropriately in the future.”

Council Administrator, Rik Hart said that this plan has been developed for the community, with the community.

“We’ve spent the last year having meaningful conversations with a representative sample of the Central Coast population – and from here we have discovered our community’s water values and preferences,” Mr Hart said.

“One thing from this consultation was clear: the community value the reliability provided by climate independent supplies. In other words, they want a water supply system that doesn’t just rely on rain, to ensure we have enough water for future generations.

“Piecing this plan together has been a journey; from consulting with the community, to undertaking a multitude of investigations, modelling, analysis – all with the aim to develop an agile, efficient and collaborative plan and approach to water security.

“We look forward to receiving your final input, comments and ideas for this plan, to ensure we provide the Central Coast with a resilient and sustainable water future – one that is supported by our community.”

The draft Central Coast Water Security Plan will be available to view from 31 August. Community members will be able to provide their feedback at yourvoiceourcoast.com