Office of the Administrator Media Release - Administrator welcomes IPART’s decision however insists it’s not enough to provide long term financial sustainability
Monday, 17 May 2021
Central Coast Council Administrator, Mr Rik Hart said whilst IPART’s decision to allow for a special rate increase of 15% for only three years is welcome it doesn’t go far enough to provide long term financial sustainability to Central Coast Council.
“IPART’s decision of only allowing a special rate increase for three years is somewhat disappointing given the financial crisis we are in. Whilst the increase gives us short term stability, it doesn’t provide for long term financial sustainability,” Mr Hart said.
“This decision makes it extremely challenging to plan for major infrastructure in the future and means we will need two more IPART decisions in the next three years. This will result in two further years’ work of consultation, continuing to cause complications and instability for the organisation and the community.
In December 2020, Council was required to source commercial loans in order to enable us to fund a reduced capital works program and pay creditors. Those commercial loans required Council to commit to terms and conditions which included assets sales, reduction in costs and a reduction in staff numbers.
“There was no ‘bail out’ from the NSW Government. It was said from the beginning that without a rate increase there would be further service reductions and assets sales, and sadly the community is already witnessing what this looks like” said Mr Hart.
“We continue to hear from the various members of parliament of their opposition to the rate increase, however once again they offer no alternative.”