23 SEPTEMBER 2021
ISSUE 028
REAL INDEPENDENT LOCAL WEEKLY NEWS
News
Community loves home markets
Rotary Brisbane Water has been donating old mobile phones and laptops to Ettalong-based charity The Peninsula Lighthouse to assist those fleeing domestic violence. See page 8
Out&About
Following the soaring success of their idea to bring a virtual market to Bouddi during lockdown, a Killcare duo has set their sights on expanding the initiative Coast-wide.
The CWA’s Umina Beach branch has put the call out for ‘urgent’ action on social and affordable housing options in NSW through a new ‘sleep out’ campaign. See page 14
Health
See page 13
Solving restricted funds mystery a challenge for Inquiry The use – perhaps unlawful – of internal and external restricted funds is expected to be one of the issues examined by the Public Inquiry into Central Coast Council’s financial affairs when Commissioner Roslyn McCulloch begins hearings next week. One of the Public Inquiry’s tasks is to investigate whether councillors “kept under review the performance of the council, including that council spending was responsible and sustainable by aligning general revenue and expenses” which should include resolving how $175M or more of restricted funds were spent in contravention of the Local Government Act.
One the eve of the inquiry Administrator Rik Hart said internally restricted funds were still being spent to keep the Council afloat but that the expenditure was now lawful and fund balances, as shown in monthly investment reports, were improving. Since the councillors were suspended 11 months ago $60 million of public assets have been put up for sale, rates are up 13 per cent, harmonisation means some rates are up more than 40 per cent, hundreds of Council employees have lost their jobs and services have been cut. Council has warned more cuts may be needed unless IPART permits a permanent 3 per cent rate increase and
higher water and sewer rates. The Council has borrowed $150M, on undisclosed commercial terms, in addition to its already substantial debt. Despite all the measures listed above, the Council is still relying on internally restricted funds to pay costs, including payroll, almost a year after the suspension of Councillors. According to Hart the NSW Office of Local Government gave Council permission to continue to use restricted funds up to a cap of $175M when Council was placed in administration last year. Local Government Minister, Shelley Hancock, did not give the elected Councillors permission to use externally restricted funds when they
sought her assistance having learned that restricted funds had been spent without their knowledge or permission or that of the Minister. Interim Administrator Dick Persson initially highlighted the alleged unlawful use of restricted funds as a major reason for the suspension of Councillors but later claimed it was the Council’s big budget deficits that were more of a problem. CCN asked the Minister for Local Government and Office of Local Government for confirmation of the $175M cap arrangement and received the following statement: “The Minister has not received any application from Central Coast Council seeking approval to
borrow externally restricted funds.” When asked on August 30 if Council could cover costs and pay staff without using restricted funds, Administrator Hart answered “No”. “That is what you see in the investment report, we are still negative, but we are on an approved payment plan.” Hart clarified this statement on September 22 when he said the balances of external restricted funds were “correct and proper” – repatriated using some of the $150M bank borrowings – so permission from the Minister was not required. See page 4
A virtual trek will be held from October 16 to December 4 to support veterans facing financial hardship as well as encouraging families in lockdown to get outside and be active. See page 27
Sport
The Central Coast MTB Trail Alliance is calling on Council to take positive steps to provide sustainable off-road cycling infrastructure in the region. See page 31
Puzzles page 18
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