Update on Council's financial situation - Administrator's Column

Date

Monday, 7 December 2020

Release

Last Wednesday at an Extraordinary Meeting of Council I delivered my 30 Day Interim Report into Central Coast Council’s finances.

The ten-page plain english report has provided the community with an insight into the catastrophic financial mismanagement that has plagued the council for the past three years. 

Council’s operating loss for the current financial year is on track to be in order of $115m, this follows last year’s loss of $89m. 

Accumulated losses for the last four years are $232m, debt has risen from $317m to $565m since amalgamation. Employee costs have risen by 42% while revenue has risen by only 6%.

Tough and timely measures will need to be achieved immediately, including: 

  • Significant asset sales of at least $40m over each of the next two years
  • Further borrowings
  • A substantial rate increase
  • An increase in some council charges
  • A major reduction in Council’s senior and middle management numbers
  • A reduction in staff numbers to return to the level at the time of amalgamation

I understand the community’s outrage over the findings, including the measures to bring Council back to a balanced budget.

I sincerely wish there was some other way of getting rid of the deficit without any burden on ratepayers. 

Please read the report now available at centralcoast.nsw.gov.au. Most of the savings will come from reducing operating expenses.   
 

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Last updated : Mon 7 Dec 2020