Administrator puts rate rise on the table

Date

Thursday, 26 November 2020

Release

Central Coast Council will notify the Independent Pricing and Regulatory Tribunal (IPART) of its intention to prepare an application for a one-off Special Rate Variation (SRV) of 8%.

Administrator Dick Persson AM said this did not necessarily mean the application would proceed but if one wasn’t lodged the opportunity would be lost.

The rate would apply from 2021-22 and remain permanently in the rate base for seven years which plus the 2% annual rate peg increase represents a total rate increase of 10%.

The application for a rate rise is proposed as of part of a suite of measures being considered to address the current financial situation Council is experiencing.

The need for the extraordinary meeting, at this time, came from IPART’s deadline whereby  applications need to be notified by 27 November 2020.

“I want to assure the community that this is not a done deal. It remains one of the options on the table,” Administrator Persson said.

“We need to keep our options open here as a rate rise may be needed to ensure our community can continue to receive the services they want and need.

“IPART is a completely independent process and the community will be consulted on a rate rise if we go down that path. We can’t put rates up on our own.

“We are exploring all other options as well including the sale of assets, borrowings, a reduction in our management structures and restrictions on spending which will all help our bottom line.”

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Last updated : Tue 1 Dec 2020