Council urgently seeks financial assistance to pay employees

Date

Tuesday, 20 October 2020

Release

Council resolved tonight to undertake further urgent actions in response to Council’s serious financial situation.

Mayor Lisa Matthews said Council had a serious liquidity issue and the current funds in the bank were quarantined as restricted funds under the Local Government Act.

“Council will make urgent representations again to Minister for Local Government, Shelley Hancock seeking permission for the partial utilisation of restricted funds to make staff payroll for the week ending 18 October 2020,” said Mayor Matthews.

“Should the Minister’s approval not be forthcoming, then some 2,157 full time equivalent Council employees may not be paid this week.”

“We urgently require a response to Council’s query made on Tuesday 13 October about borrowing from restricted funds.”

To date, Council has received no formal response to this request from the Minister.

Council has also asked the Acting CEO to urgently seek a commercial loan or overdraft and persist with seeking State Government support with emergency funding for Central Coast Council.

Another Extraordinary Council Meeting will be held at 1.30pm tomorrow, Wednesday 21 October.

For up to date information about Council’s financial situation, go to the Newspage on Council’s website at centralcoast.nsw.gov.au

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Last updated : Wed 21 Oct 2020