Council received the Q1 Business Report on progress against Council's 2020-21 Operational Plan at an Extraordinary Meeting held on Wednesday 2 December 2020. The report indicates that Council's projected financial position at 30 June 2021 will be a loss of $115.1M. The loss includes $45M of one-off structural costs.
Business Recovery Plan
Council is taking a number of measures to address the financial situation including:
Reducing headcount back to pre-amalgamation numbers from over 2,500 to under 2000 – cost savings of $30M
Reducing materials and contracts by $20M
Maintaining infrastructure spending at $170M
Obtaining $150M in bank loans
Selling $40-$60M in underperforming assets
Generating additional revenue
Council acknowledges the input from union representatives which has ensured that there is a collaborative approach to Council's business recovery actions, and that staff impacts are of the highest consideration.
Securing your future with a rate rise
Council has resolved to consider applying to the Independent Pricing and Regulatory Tribunal (IPART) for a rate rise to help with Council’s financial recovery. This process is called a Special Variation (SV) application.
Find out more about what a rate increase means and have your say at yourvoiceourcoast.com
Interim Administrator appointment and report
The Minister for Local Government, the Hon Shelley Hancock MP, has suspended Council for a period of three months from 30 October 2020.
Dick Persson AM has been appointed as interim administrator. Find out more about this appointment including FAQs and Administrator columns.
At the request of the Minister for Local Government and as part of his appointment as Interim Administrator, Mr Persson had to deliver a 30 Day Report into Central Coast Council's financial situation. The Administrator's 30 Day Interim Report was tabled at the Extraordinary Council Meeting on 2 December 2020.
- Council considers increasing IPART application by 5% and Council making strides in financial recovery- Council Meeting Highlights 14 December 2020
- Office of Administrator Media Release - Administrator's 30 Day Interim Report - tabled at an Extraordinary Council Meeting on 2 December 2020
- Sale of Assets will help Council's bottom line - Council Meeting Highlights 30 November 2020 - see also below FAQs on property asset sales.
- Administrator puts rate rise on the table - Media release 26 November 2020
- Council secures $50M loan - Media statement 12 November 2020
- Stage two of Council's Business Recovery Plan underway - Council Meeting Highlights - 9 November 2020
100 Day Action Recovery Plan - now called Business Recovery Plan