The financially stricken Central Coast Council in NSW wants to increase its rates by more than 15 per cent a year for 10 years to repay an emergency $150 million loan and stabilise its books as it seeks to emerge from administration.
The local authority, formed by the 2016 merger of Gosford and Wyong councils, has asked independent pricing regulator IPART to extend the 15.55 per cent yearly increase it was previously allowed to impose for three years for a further seven years until 2031.
The much-criticised council, now run by a state government-appointed administrator and subject to an inquiry into its financial mismanagement, is one of four NSW councils – with more likely to follow – asking permission to raise rates beyond the 0.7 per cent cap the regulator set in November for the 2023 year.
The tribunal will consider the submissions and decide on them by mid-May.
“Councils are required to demonstrate the need for the additional revenue, evidence of community consultation, and an assessment of the impact on affected ratepayers,” chairwoman Carmel Donnelly said.
The annual round of negotiations with the regulator gives an insight into the way local authorities are managing not just their finances but responding to their changing environment.
A submission by Cumberland City Council in Sydney’s western suburbs shows the authority’s attempt to balance the revenue base between owners of detached homes and the growing number of apartment dwellers.
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