Service level consultation to inform future rate proposal

Central Coast Council will commence the next stage of community consultation in its bid to maintain the current rates income beyond three years. 

Council Administrator, Rik Hart said the two years of heavy losses and overspending left Council having to restructure its business and budget to produce a surplus to repay the $150million debt over the next 10 years.

“We cannot forget, loans of $150million were provided to Council in 2020 based on Council’s financial recovery plan which included sale of assets, reduction in costs of $50milion, capping infrastructure spending and a rate increase of 13 percent plus rate peg for 10 years in order to repay the loans.

“In less than three years’ time we will be facing an average annual income loss of $25.8million over the next 7 years and this means we will be forced to reduce or cease many services.

“There has been major restructuring of Council and Council is on track to achieve the $50million in cost savings including productivity gains.  Together with the recent rate increase, Council is budgeting for a small surplus this financial year.

“Our current plan is working, and Council is on track to be able to continue to service its community. However, we face falling off an income cliff if the current level of rates is not maintained beyond June 2024. As it currently stands, if the Special Variation is not extended, in two years ratepayers will be given a 13 percent reduction in their general rate component of the Council bill and Council will need to adjust its cost structures by a further $25.8million annually on average to cope with that reduction.

“I believe the community values the services it receives from Council, however Council cannot maintain its level of services, or increase them, and repay its debt if it suffers a large reduction of income.”

“We are proposing to make an application to IPART to maintain the current level of rates for a further seven years, consistent with what we asked for from IPART earlier this year.” 

Mr Hart said ultimately the community will have a major say in whether this application is successful, but they need to understand what the implications of this reduction in Council income will mean on the services that people use daily and that make the Central Coast a great place to live.

“Council will produce two long term financial plans, one showing income at the current rate structure, the second showing the loss of $25.8million on average from year three onwards. We will undertake community consultation so the community can provide input to whether they would prefer to continue to pay the current level of rates or receive a reduction and see a dramatic fall off in services.”

“I should point out, I cannot make cuts that will endanger public safety, break the law or harm the environment. As a result, many of the services that are most likely to be targeted for reductions would be those that support community life such as culture, sports, community services and economic development.”

“Additionally, the ability to partner with other levels of government to construct new facilities and extend services will be greatly reduced.”

Council will notify the Independent Pricing and Regulatory Tribunal (IPART) of its intention to apply to maintain the temporary Special Variation (SV) implemented in the 2021/22 financial year beyond its expiry in June 2024 for a further seven years.   Council will seek community feedback over the next few months before Council determines in early 2022 whether or not to formally apply to IPART for a Special Variation.

Information on how residents can participate in community consultation can be found at yourvoiceourcoast.com

Council finances on track for the year to date

Council’s August monthly finance report shows Council is currently tracking in a satisfactory way in relation to its 2021-22 budget.

Council Administrator Rik Hart said it was pleasing to see Council’s operating surplus (excluding capital revenue) year to date was $11million compared to the budgeted surplus of $2.9million.

“We are operationally ahead of where we thought we would be at this early part of the financial year,” Mr Hart said.

“I note that our revenue is also slightly down and some of this is due to the reduction in fees and charges as a result of the closure of most of our facilities, such as recreation centres and theatre since 1 July 2021 to comply with public health order restrictions.  

“Operational expenditure is also $8.9million lower than budgeted (inclusive of internal revenue and expenditure).  This is a direct result of the organisation continuing to have prudent financial management, keep costs down and find productivity gains.

“We promised our community that we would provide a clear line of sight into our financial management and that is what we are doing.”

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.

For more information go to “Monthly Finance Report” at centralcoast.nsw.gov.au

Council confirms planned works for the fastest growing area on the Coast

Council has adopted the Warnervale District Contributions Plan to simplify the way contributions are levied, update land and works valuations and include infrastructure to support future residential development at Wadalba South.

The Warnervale District is the fastest growing area in the Central Coast. By 2036, it is planned to accommodate 36,200 people, almost 11,900 new dwellings and generate significant employment growth.

Local Infrastructure Contribution Plans are the key legal mechanism to provide the necessary funds to provide local infrastructure for an incoming population. The Warnervale District Contributions Plan will provide:

• Transport network requirements including 32 new/upgraded roadwork segments, 34 new/upgraded intersections, 3 cycleways and 3 riparian crossings
• Drainage works including open channels, culverts (21) and the Porters Creek Diversion Scheme
• Stormwater quality treatment works where treatment is not already provided by development on site
• Parks and playing fields
• Community facilities including the Warnervale Community Hub (with library and multi-purpose district space) and Indoor Recreation Centre
• Environmental corridor land and works
• Floodplain restoration works

The adoption of the Warnervale District Contribution Plan allows the local infrastructure to be provided to meet the demand of future development in the Greater Warnervale area.

A review of all of Council’s Local Infrastructure Plans is being undertaken – The Central Coast Regional Section 7.12 Plan was adopted in April 2020, the Works In Kind Policy and Guidelines were completed in June 2021 and now the Warnervale District Contribution Plan, adopted last night. Council’s Local Infrastructure Contribution Plans are available on Council’s website.

Central Coast Green Grid: Our Place goes on public exhibition

In a first of its kind in Regional NSW, Council has developed a Green Grid plan that maps key attributes of the region so urban ecosystems, biodiversity resilience, urban amenity and connectivity between town centres, public transport hubs and major residential areas can be improved.

The Plan identifies six grids – Ecological, Hydrological, Recreational, Cultural, Agricultural and Transport and Public Domain – with the intent to increase the understanding of our current natural and built assets and how they can be connected in the future to encourage healthy living, enhance biodiversity and ensure ecological resilience.

Council received a $200,000 grant from the NSW Government’s Metropolitan Greenspace Program in December 2019 to deliver the draft Central Coast Green Grid: Our Place.

The document will be available on Council’s online consultation hub at yourvoiceourcoast.com for the community to have their say in the coming weeks.

Action plan to ensure high-quality tennis facilities for years to come

Council has been working with Tennis NSW on a strategic direction for the development, activation and sustainable management of Council-owned tennis facilities across the Local Government Area.

Council Administrator, Rik Hart said Council provides thirty tennis centres for the community and the draft Central Coast Tennis Facilities Action Plan will ensure they are properly maintained, managed and any opportunities around them are realised.

“The draft Action Plan sets the vision for the region, which is to have a network of high-quality, inclusive tennis facilities that contribute to the active and social lifestyles of our community,” Mr Hart said.

“People might not know that many tennis courts managed by Council remain open, unlocked and free for public use – this is one of the many services that we deliver year-on-year for our ratepayers.

“This Action Plan is a positive step to ensure that Council is making smart, calculated decisions around facility planning and improvements, that these community facilities continue to remain open and fit for purpose for all to enjoy and may even encourage more people to get into the sport.”

The draft Central Coast Tennis Facilities Action Plan 2021 will be placed on public exhibition on yourvoiceourcoast.com for community feedback in the coming weeks.

Council works with local sporting groups on facility hire fee relief

Central Coast Council will provide fee relief to sporting associations, clubs and community organisations who have been unable to use Council sporting facilities during the recent lockdown.

Council Administrator, Rik Hart said due to the COVID-19 lockdown enforced by the NSW State Government, all local sport was forced to pause and then cancel the remainder of their season.

“Many local sporting associations, clubs and their players have disappointedly had their winter season cut short by the current NSW Government lockdown. This has meant that not only have they been unable to use the facilities that they hired for the season, but they also haven’t been able to undertake their usual fundraising events and other income generating activities,” Mr Hart said.

“On the Central Coast we want to build a strong and resilient sporting community and to do that we need to support each other.

“So where associations and clubs are offering refunds to their players, or where community organisations operating under a community lease or licence are suffering from financial hardship due to the lockdown, we are able to support them by providing fee relief for this season.

“Local sporting clubs, associations and community groups are encouraged to contact their Council Facility Manager, and we will work with each sporting group on a case-by-case basis to ensure the ongoing viability of our local winter sports sector.”