15% rate rise application submitted as part of Council’s financial recovery   

Council will formally apply to the Independent Pricing and Regulatory Tribunal (IPART) for a 15% rate rise. The increase, which includes an annual 2% rate peg, will be applied once and remain permanently in the rate base from the 2021-22 financial year, if it’s approved by IPART.

The decision follows extensive community consultation, with well over 10,000 responses to an online survey and direct submissions received.    

Administrator Dick Persson said he understood community concern and even anger about a rate rise but it was needed to repay restricted funds that had been spent on projects the community had benefited from. 

“It is by no means an easy decision at all, none of this is easy. I have been upfront about Council’s financial situation, the reasons why and how we will turn it around and make sure it never happens again. That plan includes a rate rise,” Mr Persson said.

“We have done everything we can to find savings. There is no more juice in the lemon to squeeze here. This is the last resort.

“We are legally obligated to repay the restricted funds, which were not spent with the necessary authorisations. With a 15% rate rise, Council will be able to repay $100M within ten years by delivering modest budget surpluses.

“Ten percent means we won’t be able to repay the restricted reserves and would be back in deficit by 2026-27 and that will mean there will be further service cuts and job losses. That is not something I want to see happen in this community.

“There is also a very real risk that should Council not obtain a 15% increase it may impact the status of our bank loans with a potential early call on these loans.

“While the community consultation clearly showed the majority of respondents were against a rate rise, when presented with the three options, a 15% rise was more preferable than 10%.

“The fifteen percent includes a one-off 13% SV and the annual rate peg of 2%. If approved by IPART it would mean the 13% would be applied from 1 July 2021 and then remain permanently in the rate base. It is not 13% every financial year. In 2022-23 rates would go up again only by the rate peg approved by IPART.”

Mr Persson said he understood the timing of the proposed rise came at a difficult time for the community.

“We have a long list of actions to help this Council recover, and this rate rise is only one part of the solution,” Mr Persson said.

“I understand that it has been a difficult year and that many in the community will find any rate rise difficult, however, we have crunched the numbers and even with a rate rise of 15% it is very likely a lot of the former Wyong ratepayers will pay less than they do now, when harmonisation is taken into account.

“Looking at our neighbouring Councils, with fifteen percent Central Coast residents will still pay less than Lake Macquarie, Newcastle and Cessnock ratepayers.

“Regardless, we are here to help - rebates and payment plans will be possible and we have updated our Debt Recovery and Hardship Policy and that will be on exhibition from tomorrow.

“I want to continue the conversation with the community. Please continue to provide feedback directly to Council and to IPART, who are doing their own consultation.”

Council is receiving submissions up until Friday 26 February 2021 and IPART submissions close on Monday 1 March 2020.

Council will now formally submit an application to IPART for a 15% SV inclusive of the 2% rate peg. IPART is expected to make decisions on all SV applications, by Councils, in May.

Council’s revised draft Debt Recovery and Hardship Policy as well as the Long-term Financial Plan will be on public exhibition from tomorrow (Tuesday 9 February 2021) until Wednesday 10 March 2021).  Information and how to have a say can be found at yourvoiceourcoast.com

Editor’s note: The proposed 15% rate rise is made up of two parts - an annual 2% rate peg available to all Councils and the proposed additional 13% special variation. The 13% proposed is described as a one-off rise that remains permanently on the rate base. This means that the 13% would be applied from 1 July 2021 and remain in place rather than a 13% rise that may be applied every new financial year.

Council to urgently investigate paid parking at Central Coast beaches

Council staff will look into the viability of introducing a paid parking system at the Coast’s beaches for visitors to the region.

In response to feedback from the community, other revenue options are being explored.  

A crucial part of any new system, is that ratepayers and residents would not pay to park at beaches, just visitors. Similar systems are in place in other Council areas and will form part of the investigation.

A report, with options, will be provided back to Council in mid-March.

Plans for Gosford Regional Library forge ahead

Plans for the highly-anticipated Gosford Regional Library are forging ahead, with Council to lodge a development application to the NSW Department of Planning in the coming days to commence work on the Coast’s first regional library.

Council will also begin the tender process for the demolition of the library’s future site at 123A Donnison Street Gosford.

Council Administrator, Mr Dick Persson AM said the project has generated a high level of community interest and will deliver significant value into the region.

“This is something that the community has wanted for a long time and will no doubt enrich the lives of Central Coast locals for generations to come,” said Mr Persson.

“Libraries play an integral part in creating liveable and sustainable cities and Gosford Regional Library will act as an important community hub where residents and visitors alike can connect, share and learn within the heart of the Gosford CBD.

“A multi-generational precinct offering a diverse range of functions beyond the ‘traditional’ library, and ensure our community can continue to learn and grow.

 “The future of this Library is a question I have been asked about a lot which shoes its importance to our community and I am pleased to be able to play this role in moving the project ahead.  

Plans for the state-of-the-art library include a dedicated library space, Council customer service centre, library administration, meeting rooms, flexible function spaces, maker/creator spaces and collaboration and innovation spaces for the community over four levels.

The project is being funded through a $7million commitment under the Federal Government’s Department of Infrastructure and Regional Development’s Community Grants Program, $8.1million raised by the former Gosford City Council Special Rate Variation and $4.1million generated through the sale of 136-146 Donnison Street, Gosford.

Additionally, Council has approved the use of $8.5 million in Developer Contributions from Section 7.12 of the contribution plan.

“Following a review of available Developer Contributions, staff have identified that Gosford Regional Library is part of the Section 7.12 contributions plan, reducing the need to use the restrictions identified from the sale proceeds of Kibbleplex,” Mr Perrson added.

“This project would not be possible without the commitment from the Federal Government, as well as from the local community who helped pay for the library over many years through the former Gosford City Council’s special rate levy.”

The funded budget will cover design services, construction costs, application fees and Council costs and salaries. The Gosford Regional Library is on track to be completed by October 2023. Final design, including a fly-through can be found by searching ‘Regional Library’ at centralcoast.nsw.gov.au

Council’s Nuclear Free Policy lives on

Council will continue to have a Nuclear Free Policy that the former Gosford City Council had in place.

A Council report recommending revoking of the Policy due to the handling and mining of radioactive materials is highly regulated by Federal and State laws and the current planning system could deal with any proposals in the industry.

Administrator Dick Persson said there was a lot of debate and interest in the community about nuclear power and he agreed with resident concerns about revoking the Policy.   

“I am very comfortable in saying no to revoking the Policy and that Council will continue to have a Nuclear Free Policy.”

Council continues partnership with Surf Life Saving Central Coast

Council will continue to support Surf Life Saving Central Coast (SLSCC) to provide lifesaver services across 15 patrolled beaches from late September to April.

Beaches are patrolled by Central Coast Council lifeguards during the week and by SLSCC through individual Surf Clubs at the weekends and public holidays.

Council provides financial support to help SLSCC deliver vital beach safety patrols and educational programs and will provide $213,500 for the 2020-21 financial year.

Council Administrator Dick Persson AM said Council is thrilled to have a close working relationship with SLSCC to create safe beach and aquatic environments for residents and visitors.

“Through partnering with Surf Life Saving Central Coast we are able to provide a seamless seven day a week service at beaches most popular with locals and visitors,” Mr Persson said.

“I thank each and everyone of our volunteer surf lifesavers who keep our community safe.”

Financial support will be allocated to the following:

• $38,000 to SLSCC to coordinate beach safety activities and educational messaging across the Central Coast
• $78,000 to SLSCC to purchase required rescue equipment for Surf Clubs
• $6,500 direct to each of the Central Coast’s 15 Surf Clubs to support beach safety operations.

Editor’s note: The Central Coast’s 15 Surf Clubs are: The Lakes Surf Life Saving Club; Soldiers Beach Surf Life Saving Club; North Entrance Surf Life Saving Club; The Entrance Surf Life Saving Club; Toowoon Bay Surf Life Saving Club; Shelly Beach Surf Life Saving Club; Wamberal Surf Life Saving Club; Terrigal Surf Life Saving Club; North Avoca Surf Life Saving Club; Avoca Beach Surf Life Saving Club; Copacabana Surf Life Saving Club; MacMasters Beach Surf Life Saving Club; Killcare Surf Life Saving Club; Ocean Beach Surf Life Saving Club; and Umina Surf Life Saving Club.

Draft Works-in-Kind Policy developed to ensure quality infrastructure, value for money and increased transparency

Council has drafted two works-in-kind policies and supporting guidelines for Local Infrastructure Contributions which will be put on public exhibition for the community to review and provide feedback.

The development of these drafted policies and guidelines deliver on recommendations outlined in an audit report by the NSW Auditor General in August 2020 and includes input gathered during Council staff consultation and legal advice.

The policies and supporting guidelines will provide greater transparency and identify clear assessment protocols for the lodgement and consideration of requests to undertake infrastructure works in lieu of Development Contributions.

Local Infrastructure Contributions are charged by Council when new development occurs to fund local infrastructure needed to service an increased number of residents in the area.

This type of local infrastructure typically includes water and sewer infrastructure, local roads, stormwater and drainage, shared pathways, parks, playspaces or other recreational areas, environmental land and community facilities.

Whilst contributions are typically in the form of monetary payments for works which Council will deliver under the relevant Local Contributions Plan, applicants for a development may seek to undertake Works-in-Kind in lieu of full or partial monetary payment.

Works-in-kind can be beneficial to Council by reducing operational expenditure and resources associated with delivering the works.  However, there are governance, financial and other risks associated with works-in-kind.  An example is where works delivered might not meet Council specifications, as such, they result  in ongoing maintenance costs or rectification works at Council expense.

These polices and supporting guidelines seek to minimise those risks, and include measures such as:

• Undertaking of independent valuations for proposed works-in-kind; and
• Guidelines embedded in operational procedures within Council to ensure infrastructure is constructed to relevant Council standards and consistency with adopted Development Contribution Plans and/or Developer Servicing Plans.

Public exhibition of the draft policies and guidelines will occur in early 2021, followed by a further report to Council which considers any submissions.

Central Coast Contribution plans are available to view on Council’s website.