Central Coast Council - Special Variation of Rates Research 2021 - Your Voice Our Coast

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Central Coast Council - Special Variation of Rates Research 2021 - Your Voice Our Coast
Central Coast Council
Special Variation of Rates Research – 2021

Prepared by: Micromex Research
Date: February 23, 2021
Central Coast Council - Special Variation of Rates Research 2021 - Your Voice Our Coast
Table of Contents
Summary of Findings                               5

Detailed Results                                  7

    1. Performance of Council                     8

    2. Awareness of Special Variation of Rates    14

    3. Support for a Special Variation of Rates   18

Appendix A: Additional Analysis                   31

Appendix B: The Questionnaire                     41
Central Coast Council - Special Variation of Rates Research 2021 - Your Voice Our Coast
Background & Methodology
Why?
   •    Identify the community’s overall level of satisfaction with Council performance and
        community assets
   •    Measure awareness levels and information received about the Special Variation (SV) of rates
   •    Measure levels of support and preference for SV options

How?
   •    Telephone survey (landline and mobile) to N=404 residents:
          o   325 sourced from electronic white pages/SamplePages
          o   79 acquired through face-to-face number harvesting
   •    Those who worked for Council/had someone in their household work for Council were
        excluded from the sample
   •    We use a 5 point scale (e.g. 1 = not at all supportive, 5 = very supportive)
   •    Greatest margin of error +/- 4.9%

When?
   •    Fieldwork conducted 12th – 17th February 2021

                                                                                                      3
Central Coast Council - Special Variation of Rates Research 2021 - Your Voice Our Coast
Sample Profile
                       The sample was weighted by age and gender to reflect the 2016 ABS
                                  community profile of Central Coast Council.

                     Gender                                       Age                                                 Ratepayer status
                                                                             33%

                                                      24%        24%
                                                                                       19%

    Female 52%                   Male 48%
                                                                                                                Ratepayer          Non-ratepayer
                                                       18-34     35-49       50-69       70+                       77%                  23%

                     Ward                        Do you identify as having a disability?             Are you of Aboriginal and/or Torres Strait
                                                                                                                    Islander?
         Budgewoi                  21%                                                                                           Yes
                                                                                                                                 4%
      Gosford East               19%                                   Yes
                                                                       11%
     Gosford West                19%

      The Entrance                20%                              No                                                      No
                                                                   89%                                                     95%
            Wyong                  21%                                           *
Summary of Findings
Summary of Findings
Prior to completing the survey, 80% of residents claimed to be aware that Council is facing financial
difficulties.

Furthermore, prior to contact 58% of residents were already aware that Council is exploring
community sentiment towards a Special Variation of Rates:

•   This is significantly above our SRV awareness benchmark (43%) and demonstrates that Council
    (with support from other channels) has communicated the proposal to the Central Coast
    Community.

Given both above awareness levels, it is perhaps unsurprising that satisfaction with Council’s
performance has been significantly negatively impacted by this news.

When exposed to the 15% Increase Option, 55% of residents were at least ‘somewhat supportive’ on
a standalone rating question:

•   Those unsupportive of the 15% Rate increase nominated concerns around Council’s financial
    mismanagement and the community affordability issues.

•   Those supportive of the increase did not want to see service levels decline and see that the
    increase is the only way that Council can address a serious financial shortfall

When exposed to the Rate Peg only option, 51% of residents were at least ‘somewhat supportive’.

Ultimately forced preference was split, 55% of the community preferred Rate Peg Only and the other
45% preferred the 15% Rate Increase – with the difference between the two scores not significant.

                                                                                                        6
Detailed Results
Detailed Results
Performance of Council

                              1. Performance of Council

                              2. Awareness of Special Variation of Rates

                              3. Support for a Special Variation of Rates

                         Appendix B: Further Demographics/Background & Methodology

                         Appendix B: Questionnaire

                                                                                     8
Awareness of Council Facing Financial Difficulties
Q2.      In late October last year, it was discovered that Central Coast Council was facing financial difficulties. Council had been spending more money than it
         was receiving, both before and after amalgamation. The money came from restricted funds. (A restricted fund is a reserve account that contains money
         that can only be used for specific purposes.) The money was not lost rather it was spent on infrastructure and services that directly benefited the
         community. Prior to this call, were you aware that Council was facing financial difficulties?

                                                                                                                                      Previous       Previous
                                                                                                                          Non-
                        Overall     Male     Female      18-34     35-49         50-69         70+     Ratepayer                      Gosford        Wyong
                                                                                                                       ratepayer
                                                                                                                                        LGA            LGA

      Yes ‘%’             80%        83%       78%        79%       79%          87%▲          73%         84%▲           69%            78%           83%

      Base                404        192        212        97        97           133          77          311             93            200           204

                                                                                Not sure
                                                                                  1%

                                                                          No
                                                                          19%

                                                                                         Yes
                                                                                         80%

                                                                            Base: N = 404
                                                                                                     ▲▼ = A significantly higher/lower level of awareness (by group)

         Prior to the survey call, the vast majority of residents (80%) were aware that Council was facing
                                                 financial difficulties.
                                                                                                                                                                  9
Satisfaction with the Quality of Assets
Q1a.    Thinking generally about community assets, which include roads, footpaths, cycle ways, parks and play equipment, public buildings, public toilets,
        etc. Overall, how satisfied, if at all, are you with the quality of community assets currently provided by Council?

                                                                                                                                                  Previous       Previous
                                                                                                                                    Non-
                        Overall        Male       Female     18-34      35-49       50-69         70+          Ratepayer                          Gosford        Wyong
                                                                                                                                 ratepayer
                                                                                                                                                    LGA            LGA

   Mean rating           2.84          2.97▲       2.73      2.97        2.92       2.75          2.76             2.78             3.04▲           2.87           2.82

   T3 Box
                         64%           69%▲        59%       71%         63%        63%           58%              61%              73%▲            64%            64%
   (codes 3-5)

   Base                   403          192         211           97      97         132           77               310               93             199            204

                                                                                                                                       Central
                                                                                                                                                        Micromex LGA
            Very satisfied (5)               5%                                                                                         Coast
                                                                                                                                                         Benchmark*
                                                                                                                                       Council

                                                                                                              Mean rating                 2.84↓                3.43
                 Satisfied (4)                                                25%

                                                                                                              T3 Box                      64%↓                 86%

     Somewhat satisfied (3)                                                                 34%
                                                                                                              Base                        403                 2,575

                                                                                                               *Please note: this benchmark is an interim benchmark
       Not very satisfied (2)                                           22%
                                                                                                              for a point of reference only. The benchmark is created
                                                                                                              using 6 LGA’s (Byron Shire Council, Great Lakes Council,
                                                                                                              The Hills Shire Council, Lake Macquarie Council, Lithgow
       Not at all satisfied (1)                            14%                                                     City Council and Wingecarribee Shire Council)

                                  0%                              20%                             40%
Base: N = 403                                                                                                               Scale: 1 = not at all satisfied, 5 = very satisfied
↑↓ = A significantly higher/lower level of satisfaction (compared to the SRV Benchmark)                  ▲▼ = A significantly higher/lower level of satisfaction (by group)

          64% of residents are at least somewhat satisfied with the quality of community assets provided
          by Council, which is well below our provisional benchmark of 86%. Please refer to Slide 13 for
                                                  further details.
                                                                                                                                                                            10
Overall Satisfaction
Q1b.    Overall, for the last 12 months, how satisfied, if at all, are you with the performance of Council, not just on one or two issues, but across all responsibility
        areas?

                                                                                                                                                 Previous      Previous
                                                                                                                                  Non-
                          Overall         Male   Female     18-34         35-49       50-69        70+        Ratepayer                          Gosford       Wyong
                                                                                                                               ratepayer
                                                                                                                                                   LGA           LGA

    Mean rating            2.31           2.33    2.29       2.50         2.51▲       2.16         2.08▼          2.18             2.74▲           2.35           2.27

    T3 Box
                           44%            46%     42%        52%          53%▲        38%          33%▼           39%              60%▲            46%            41%
    (codes 3-5)

    Base                    404           192     212         97           97         133          77             311               93             200            204

                                                                                                                                      Central
                                                                                                                                                       Micromex LGA
                Very satisfied (5)        1%                                                                                           Coast
                                                                                                                                                        Benchmark
                                                                                                                                      Council

                                                                                                             Mean rating                 2.31↓                3.36
                     Satisfied (4)                                  18%

                                                                                                             T3 Box                      44%↓                 82%
       Somewhat satisfied (3)                                                   25%
                                                                                                             Base                        404                 6,905

         Not very satisfied (2)                                            23%

         Not at all satisfied (1)                                                            33%

                                     0%                            20%                             40%
Base: N = 404                                                                                                               Scale: 1 = not at all satisfied, 5 = very satisfied
↑↓ = A significantly higher/lower level of satisfaction (compared to the SRV Benchmark)                  ▲▼ = A significantly higher/lower level of satisfaction (by group)

           44% of residents are at least somewhat satisfied with the performance of Council over the last
            12 months. This is well below our benchmark. As per the previous slide, those not previously
            aware of the SV were significantly more satisfied than those aware of the SV – although the
                                 former group was still well below our benchmark.                                                                                           11
Overall Satisfaction
Q1b.   Overall, for the last 12 months, how satisfied, if at all, are you with the performance of Council, not just on one or two issues, but across all responsibility
       areas?

                5                                                                                                                                   100%

                                                                  82%                            82%
                4                 80%                                                                                                               75%

                                                                                                3.39
                                                                3.29
                                 3.14
                3                                                                                                                                   50%
                                                                                                                                    44%
                                                                                                                               2.31

                2                                                                                                                                   25%

                1                                                                                                                                   0%
                           2018 (N = 611)                 2019 (N = 602)                  2020 (N = 606)                 2021 (N = 404)

                                                    Mean rating              Top 3 Box (at least somewhat satisfied)

                                                                                                                           Scale: 1 = not at all satisfied, 5 = very satisfied

           Satisfaction with Central Coast Council is significantly below readings obtained in the past
                                   three annual Customer Experience surveys.
                                                                                                                                                                           12
Satisfaction by Awareness of SV and Current Financial
                          Situation
Q1a.     Thinking generally about community assets, which include roads, footpaths, cycle ways, parks and play equipment, public buildings, public toilets,
         etc. Overall, how satisfied, if at all, are you with the quality of community assets currently provided by Council?

                                                                 Q7a.                               Q2.                    Q7a and Q2 combined

                                                                                                                           Aware of
                                                                                     Aware of
                                                       Aware of                                                            financial
                                                                     Not aware/      financial            Not aware/                       Not aware/
                                                      the SV prior                                                        difficulties
                                                                      not sure      difficulties           not sure                         not sure
                                                        to call                                                           and/or SV
                                                                                    prior to call
                                                                                                                          prior to call

                            Mean rating                  2.70           3.03▲            2.84                2.85             2.82             3.02

                            T3 Box                       59%            71%▲             65%                 61%              63%              68%

                            Base                          232           171              324                  79              353               50

Q1b.     Overall, for the last 12 months, how satisfied, if at all, are you with the performance of Council, not just on one or two issues, but across all responsibility
         areas?
                                                                 Q7a.                               Q2.                    Q7a and Q2 combined

                                                                                                                           Aware of
                                                                                     Aware of
                                                       Aware of                                                            financial
                                                                     Not aware/      financial            Not aware/                       Not aware/
                                                      the SV prior                                                        difficulties
                                                                      not sure      difficulties           not sure                         not sure
                                                        to call                                                           and/or SV
                                                                                    prior to call
                                                                                                                          prior to call

                            Mean rating                  2.12           2.56▲            2.25                2.57▲            2.23             2.90▲

                            T3 Box                       36%            54%▲             41%                 56%▲             40%              69%▲

                            Base                          233           171              325                  79              354               50

Scale: 1 = not at all satisfied, 5 = very satisfied                                                        ▲▼ = A significantly higher/lower level of satisfaction (by group)

            Satisfaction with Council’s performance was significantly higher for those not aware of the SV
                          and that Council is experiencing financial difficulties prior to the call.
                      Differences were less pronounced on the ‘satisfaction with assets’ question.
                                                                                                                                                                            13
Awareness of a Special Variation of Rates
                                            Detailed Results

                                                 1. Performance of Council

                                                 2. Awareness of Special Variation of Rates

                                                 3. Support for a Special Variation of Rates

                                            Appendix B: Further Demographics/Background & Methodology

                                            Appendix B: Questionnaire

                                                                                                        14
Awareness of a Special Variation of Rates
Q7a.    Prior to this call, were you aware that Council was exploring community sentiment towards a Special Variation of Rates?

                                                                                                                                     Previous      Previous
                                                                                                                         Non-
                     Overall      Male      Female        18-34     35-49       50-69        70+       Ratepayer                     Gosford       Wyong
                                                                                                                      ratepayer
                                                                                                                                       LGA           LGA

 Yes ‘%’               58%        66%▲        50%         43%▼       46%▼       72%▲         65%          65%▲           34%           61%           55%

 Base                  404        192         212          97         97         133          77          311             93           200           204

                                                    Not sure
                                                      2%

                                                                                                                     Central
                                                                                                                                    Micromex LGA
                                                                                                                      Coast
                                             No                                                                                      Benchmark
                                                                                                                     Council
                                             40%
                                                                   Yes                          Yes ‘%’                58%↑               43%
                                                                   58%

                                                                                                Base                   404               7,874

                                                   Base: N = 404

▲▼ = A significantly higher/lower level of awareness (by group)                        ↑↓ = A significantly higher/lower percentage (compared to the Benchmark)

         58% of residents stated they were aware of Council exploring community sentiment towards a
                 Special Variation of Rates prior to the call – well above our benchmark of 43%.
         Older residents, males and ratepayers were more likely to be aware that council was seeking
                                                        a SV.                                                                                                 15
Source of Information on a Special Variation of Rates
Q7a.     Prior to this call, were you aware that Council was exploring community sentiment towards a Special Variation of Rates?
Q7b.     (If yes on Q7a) How were you informed of the Special Variation of Rates?

                                                    Of those aware of the SV

            Letter in the post from Council                                                55%

       Media (eg: TV, newspapers, radio)                                             48%                              Net: Council-run
                                                                                                                    communications 67%
                                                                                                                  (39% of total population)
                            Word-of-mouth                                     40%

         Other websites or social media
                                                                    22%                            Other (specified)                          Count
       channels not managed by Council
                                                                                                   Council staff/Councilor/meetings             3
         Council’s social media channels                      16%
                                                                                                   Rates notice                                 2
                           Council website              10%                                        Community committees                         1

                                                                                                   Facebook                                     1
                Emailed letter from Council             8%
                                                                                                   IPART website                                1
                            Council e-news         3%                                              Petition                                     1

                                                                                                   Survey                                       1
                                      Other        4%

                                              0%     10%     20%     30%   40%      50%    60%

Base: N = 233

          Of those that were aware of the SV prior to the call, mail from Council (55%), traditional media
         (48%) and word-of-mouth (40%) were the most common ways of being informed about the SV.
           67% of those aware of the SV (39% of the total sample) indicated they became aware via a
                                             listed Council channel.                                                                                  16
Source of Information on a Special Variation of Rates
Q7a.    Prior to this call, were you aware that Council was exploring community sentiment towards a Special Variation of Rates?
Q7b.    (If yes on Q7a) How were you informed of the Special Variation of Rates?

                                                              Of those aware of the SRV

                                                                                                                                        Previous   Previous
                                                                                                                              Non-
                                                    Male     Female     18-34      35-49   50-69      70+     Ratepayer                 Gosford    Wyong
                                                                                                                           ratepayer
                                                                                                                                          LGA        LGA

 Letter in the post from Council                     59%       49%      44%        59%      58%       54%        61%▲         15%▼        54%        56%

 Media (eg: TV, newspapers, radio)                   54%       41%      35%        31%▼     52%       66%▲        48%             45%     47%        49%

 Word-of-mouth                                       38%       43%      44%        35%      41%       40%         38%             54%     39%        41%
 Other websites or social media channels
                                                     18%       26%      38%▲       28%      17%       11%▼        21%             29%     22%        21%
  not managed by Council
 Council’s social media channels                     15%       18%      17%        23%      18%       7%▼         16%             20%     14%        19%

 Council website                                     9%        12%      14%         9%      10%       10%         10%             10%     9%         12%

 Emailed letter from Council                         8%        9%       14%         9%       7%        5%         9%              2%      10%        6%

 Council e-news                                      1%        5%        6%         2%       2%        3%         3%              2%      4%         2%

 Other                                               2%        6%        0%         4%       2%       10%         4%              0%      3%         5%

 Base                                                127       107       42         45       96        50         202             31      122        111

▲▼ = A significantly higher/lower percentage (by group)

                                                                                                                                                           17
Support for a Special Variation of Rates
                                           Detailed Results

                                                1. Performance of Council

                                                2. Awareness of Special Variation of Rates

                                                3. Support for a Special Variation of Rates

                                           Appendix B: Further Demographics/Background & Methodology

                                           Appendix B: Questionnaire

                                                                                                       18
Concept Statement
   Residents were read the following concept statement prior to
                being asked to rate their support:

Council's projected financial result for the year ending 30 June 2021 will be a loss of
$115.1M. The loss includes $45 million of one-off structural costs to reduce Council’s
workforce, such as redundancy payments to staff in accordance with the Local
Government Award.

At the end of this financial year, accumulated losses over the past four years will
likely be more than $200M.

Accumulated debt (including the owed restricted reserves) will be in the order of
$565M. This has increased from $317M, which was the combined loan balance of
both the former Gosford and Wyong Councils when they amalgamated in 2016.
There was also an IPART (NSW Independent Pricing and Regulatory Tribunal)
decision in May 2019, reducing Council revenue by $39M through water and sewer
service charges.
Council is taking a number of measures to address the current financial situation,
such as:

• Reducing staff numbers back to pre-amalgamation levels
• Reducing materials and contracts
• Maintaining but not increasing infrastructure spending
• Obtaining bank loans
• Selling underperforming assets
• Generating additional revenue

                                                                                          19
Concept Statement
                     Continued
These measures will not be enough to help with financial recovery and a special
variation in rates is required for the long-term sustainability of Council finances, to
repay borrowed restricted funds and for Council to be able to deliver the services
the community needs and wants.

A special variation in rates may affect households differently, as currently rates are
different in the previous Gosford and Wyong LGA’s – and the NSW Government has
indicated that these differences have to be removed or harmonised.

Since the amalgamation Council has been required to maintain two rating systems.
This was due to a four-year rate freeze imposed by the NSW Government. This
meant that Council could not adjust rates beyond the rate peg in the first four years
after amalgamation. Under current legislation Council must maintain one consistent
rating structure to ensure a fairer and more equitable system across all rating
categories within the Central Coast Local Government Area. This will be a separate
process to the special variation in rates and will also take effect from 1 July 2021
and will only affect general rates (being ordinary and special rates). The special
variation in rates does not apply to the waste and on-site sewer management
annual charges which also appear on Council rates notices.

Generally speaking, ratepayers in the former Wyong LGA have been paying more
than ratepayers in the former Gosford LGA as Council was unable to harmonise
rates until now.

Rates are an important revenue source for Council, representing 29% of Council’s
income. Council also receives grant funding from State and Federal Governments
and income from fees and charges.
                                                                                      20
Concept Statement
                    Continued
At present, Council’s revenue is regulated by the NSW Independent Pricing and
Regulatory Tribunal (IPART). IPART limits the amount by which councils can increase
rates from one year to the next. At the moment, that amount, known as the rate
peg, is an annual increase of 2.0% for 2021-22. IPART determine the rate peg for
each rating year (which corresponds to a financial year) and the assumptions in the
special variation of rates application is 2.5% for future years. Normally Council’s
increase in rating income is from the application of the annual rate peg and is not
from increases in unimproved land values.

In considering a possible rate variation, Council looked at the rate levels of
neighbouring Councils. Even with a 15% rate increase, Central Coast ratepayers will
still be paying less than neighbouring Councils.
For example, on average:
•            Lake Macquarie rates will be 35% higher than Central Coast rates
•            Newcastle rates will be 43% higher, and
•            Cessnock rates will be 14% higher.

Council’s priority has to be the repayment of restricted funds so that does not
become a burden for future generations. As such, a special variation of rates has
been identified as an option to address this problem.
Council acknowledges that any rate increase may adversely impact some
community members. Council has a Hardship Policy and alternative payment
options to assist ratepayers.

                                                                                  21
15% Rate Rise*
Council proposes that in 2021-22 the rate increase would consist of the annual 2% rate peg and a further 13% Special Variation
(SV) that would be applied once in 2021-22 and will remain permanently in the rate base. From 2022-23 the rate peg (as
determined by IPART) will apply. Based on IPART information the assumed rate peg will be 2.5% from 2022-23 and onwards.
The exact amount you will pay will vary depending on the rating category for your parcel of land and the value of your land as
determined by the NSW Valuer General. These calculations are impacted from changes to land values and will be applied as
received from the NSW Valuer General.
Average ordinary rates for the Central Coast Council region will move by the following based on land values from early
December 2020. The SV increase does not apply to waste and on-site sewer management (OSSM) and annual charges which
also appear on rates notices:
•   For residential – average increase of $3.20 per week
       o   former Gosford LGA average increase of $7 per week
       o   former Wyong LGA average decrease of $3 per week
• For business – average increase of $9.30 per week
• For farming – average increase of $5.30 per week

*Order of presenting the ‘15% Rate Rise’ and ‘Rate peg only’ options was randomised to reduce position bias.

                                                                                                                                 22
15% Rate Rise

This option forecasts the maintenance of the current levels of service, such as:

    Construction of roads, footpaths, cycleways and drains would continue
    Rubbish collection in public areas continues at similar service levels
    Community events would be maintained, but not expanded.
    Maintaining opening hours and programs at pools, libraries
    Maintenance of sporting and community facilities, parks and gardens would remain as is, with no increase to mowing,
     planting or maintenance
    Environmental programs would be retained (e.g. weed removal and native vegetation programs)
    Processing times for customer requests, applications and permits would remain the same

                                                                                                                           23
Support for 15% Rate Rise
Q4a.    How supportive, if at all, are you of Council proceeding with this Option?

                                                                                                                                           Previous      Previous
                                                                                                                            Non-
                        Overall       Male    Female       18-34      35-49      50-69           70+    Ratepayer                          Gosford       Wyong
                                                                                                                         ratepayer
                                                                                                                                             LGA           LGA

   Mean rating            2.64        2.69     2.60        2.79       2.83       2.44▼           2.59       2.56            2.94▲            2.53            2.75

   T3 Box
                          55%         54%      56%         66%▲        63%       47%▼            47%        52%             68%▲             53%             58%
   (codes 3-5)

   Base                   404         192       212         97         97            133          77         311              93             200             204

        Very supportive (5)                      8%
                                                                                                                              Aware of the            Not
                                                                                                                               SV prior to          aware/
                Supportive (4)                                                                                                    call              not sure
                                                                        19%

                                                                                                           Mean rating              2.55              2.77
 Somewhat supportive (3)                                                                    28%
                                                                                                           T3 Box
                                                                                                                                    51%               61%
                                                                                                           (codes 3-5)
    Not very supportive (2)                                           18%
                                                                                                           Base                     233               171

   Not at all supportive (1)                                                               27%

                                 0%      5%       10%       15%        20%       25%        30%

                                                                                                                 Scale: 1 = not at all supportive, 5 = very supportive
Base: N = 404                                                                                           ▲▼ = A significantly higher/lower level of support (by group)

        55% of residents are at least somewhat supportive of Council proceeding with the 15% Rate Rise.
       Although not significant, a marginally higher proportion of residents committed to the top 3 boxes
       (somewhat supportive to very supportive) for those who were not aware of the SV prior to the call.
                                                                                                                                                                    24
Q4a.
                          Reason for Level of Support (Rate Rise)
        How supportive, if at all, are you of Council proceeding with this Option?
Q4b.    Why do you say that?

                                                                                                           Not at all/                     Very
                                                                                                                         Somewhat
                                                                                               Overall      Not very                    supportive/
                                                                                                                         supportive
                                                                                                           supportive                   Supportive

     Council is to blame/we should not pay for their financial mismanagement                     21%          38%▲           14%▼           2%▼

     Fix the problem/needs to happen/sounds reasonable                                           21%           1%▼           23%            49%▲

     Would like to keep/maintain service levels                                                  15%           2%▼           12%            40%▲

     Poor financial management/lack of trust managing finances in the future                     15%          22%▲           14%            4%▼

     Will be hard on residents/too expensive/can't afford it                                     15%          22%▲           18%            2%▼

     General comments on poor Council services                                                   12%          21%▲            7%            2%▼

     Comments about Council/staff e.g. someone needs to be accountable, removal of staff,
                                                                                                 12%          17%▲           13%            2%▼
      etc.

     Base                                                                                        404          180            113            111

Please see Appendix A for remaining list of responses                                ▲▼ = A significantly higher/lower percentage (by level of support)

               The community appears to be polarized in their reasoning for level of support – see top
                        responses circled above (other responses are in Appendix A).
                                                                                                                                                    25
Reason for Level of Support (Rate Rise) Continued
Q4a.      How supportive, if at all, are you of Council proceeding with this Option?
Q4b.      Why do you say that?

                                                                                                 Aware of         Not         Previous    Previous
                                                                                                the SV prior    aware/        Gosford     Wyong
                                                                                                   to call      not sure        LGA         LGA

   Council is to blame/we should not pay for their financial mismanagement                         26%▲           15%           25%          18%

   Fix the problem/needs to happen/sounds reasonable                                                21%           20%           17%          25%

   Would like to keep/maintain service levels                                                       13%           17%           17%          13%

   Poor financial management/lack of trust managing finances in the future                         19%▲            9%           15%          14%

   Will be hard on residents/too expensive/can't afford it                                          14%           17%           15%          16%

   General comments on poor Council services                                                        11%           13%           12%          12%

   Comments about Council/staff e.g. someone needs to be accountable, removal of staff, etc.       16%▲            7%           16%▲         8%

   Base                                                                                             233            171          200          204

Please see Appendix A for remaining list of responses                                  ▲▼ = A significantly higher/lower percentage (by awareness/LGA)

                 Those aware of the SV prior to the call were significantly more likely to make negative
                   comments on Council actions and management than those who were not aware.
                                                                                                                                                     26
Rate Peg Only*
If no special variation in rates is applied, Council would only charge the annual increase of 2% allowed through the rate peg,
which is set by IPART. Based on IPART information the assumed rate peg will be 2.5% from 2022-23 and onwards.
The exact amount you will pay will vary depending on the rating category for your parcel of land and the value of your land as
determined by the NSW Valuer General. These calculations are impacted from changes to land values and will be applied as
received from the NSW Valuer General.
Average ordinary rates for the Central Coast Council region will move based on land values from early December 2020. The
special variation of rates increase does not apply to waste and on-site sewer management (OSSM) annual charges which also
appear on rates notices:

• Residential – average increase of $0.42 per week
      o former Gosford LGA average increase of $2.08 per week
      o former Wyong LGA average decrease of $1.37 per week
• Business – average increase of $1.24 per week
• Farming – average increase of $0.70 per week

*Order of presenting the ‘15% Rate Rise’ and ‘Rate peg only’ options was randomised to reduce position bias.
                                                                                                                                 27
Rate Peg Only
Given Council's financial situation, relying just on the annual rate peg increase would result in significant impacts to Council's
services, such as:
• Service closures including some library branches and community facilities
• Significant reduction in maintenance of facilities and infrastructure
• Significant deterioration of assets
• Significant reduction in road, footpath and drainage maintenance
• Significant reduction to environmental programs (e.g. weed removal and native vegetation programs)
• Longer processing times for customer requests, development applications and permits and closure of service points
• More staff reductions and follow on service reductions
• Reduced maintenance of sporting facilities, parks and playgrounds – no new facilities or major upgrades only renewals
  based on safety
• No community events run by Council and no grants and sponsorship of other events
• Further sales of assets and land
• Significant increases in fees and charges

                                                                                                                                     28
Support for Rate Peg Only
Q5.       How supportive, if at all, are you of Council proceeding with this Option?

                                                                                                                                           Previous         Previous
                                                                                                                            Non-
                          Overall      Male     Female      18-34      35-49      50-69          70+    Ratepayer                          Gosford          Wyong
                                                                                                                         ratepayer
                                                                                                                                             LGA              LGA

      Mean rating          2.57        2.60      2.55       2.51       2.70        2.54          2.56       2.56             2.61             2.53             2.62

      T3 Box
                           51%         51%       52%        53%           57%      48%           48%        49%              61%              49%              54%
      (codes 3-5)

      Base                  404        192        212        97           97       133            77         311              93              200              204

          Very supportive (5)                      8%
                                                                                                                               Aware of               Not
                                                                                                                                 the SV             aware/
                Supportive (4)                                                                                                prior to call         not sure
                                                                    16%

                                                                                                           Mean rating              2.59             2.56
 Somewhat supportive (3)                                                                   27%
                                                                                                           T3 Box
                                                                                                                                    49%               55%
                                                                                                           (codes 3-5)
      Not very supportive (2)                                                     23%
                                                                                                           Base                     233               171

      Not at all supportive (1)                                                           26%

                                  0%       5%       10%       15%         20%      25%          30%

                                                                                                                 Scale: 1 = not at all supportive, 5 = very supportive
Base: N = 404                                                                                           ▲▼ = A significantly higher/lower level of support (by group)

             51% of residents are at least somewhat supportive of Council proceeding with the Rate Peg
                                                    only option.
                                                                                                                                                                       29
Preferred Option
Q6.      Which one of the two options would be your preferred option:

                                                                                                                           Previous    Previous
                                                                                                              Non-
                        Overall    Male     Female       18-34     35-49     50-69   70+     Ratepayer                     Gosford     Wyong
                                                                                                           ratepayer
                                                                                                                             LGA         LGA

      15% Rate Rise      45%        46%       45%        55%▲       46%      42%     37%          44%          51%           45%         46%

      Rate Peg           55%        54%       55%        45%▼       54%      58%     63%          56%          49%           55%         54%

      Base                404       192        212         97           97   133     77           311           93           200         204

                                                                                                            Aware of          Not
                                                                                                              the SV        aware/
                                                                                                           prior to call    not sure

                                                          15% Special                      15% Rate Rise       45%            45%
                                      Rate Peg Only       Variation of
                                           55%               Rates
                                                              45%                          Rate Peg            55%            55%

                                                                                           Base                233            171

                                                Base: N = 404

         Results indicate that while there is a slight preference for rate peg only (the difference between
         the 55% and 45% is not statistically significant at the 95% confidence level), a sizeable minority
                    of the community seemingly want to draw a line in the sand and move on.
                                                                                                                                                  30
Appendix A:
Additional Analysis
Background & Methodology
Sample selection and error

A total of 404 resident interviews were completed. 325 of the 404 respondents were chosen by means of a computer based random selection
process using the electronic White Pages and SamplePages. The remaining 79 respondents were ‘number harvested’ via face-to-face intercept
at several locations around the Central Coast Council LGA, i.e. Gosford Farmers Markets, Gosford Train Station, Lake Haven surrounds, San Remo
Coles/Tavern, Terrigal Waterfront, Tuggerah Train Station/Supercentre and Woy Woy Train Station/Umina Beach.

A sample size of 404 residents provides a maximum sampling error of plus or minus 4.9% at 95% confidence. This means that if the survey was
replicated with a new universe of N=404 residents, 19 times out of 20 we would expect to see the same results, i.e. +/- 4.9%.

For the survey under discussion the greatest margin of error is 4.9%. This means, for example, that an answer such as ‘yes’ (50%) to a question
could vary from 45% to 55%.

The sample was weighted by age and gender to reflect the 2016 ABS Census data for Central Coast Council LGA.

Interviewing

Interviewing was conducted in accordance with The Research Society Code of Professional Behaviour.

Prequalification

Participants in this survey were pre-qualified as being over the age of 18, and not working for, nor having an immediate family member working
for, Central Coast Council.

Data analysis

The data within this report was analysed using Q Professional.

Within the report, ▲▼ are used to identify statistically significant differences between groups, i.e., gender, age, ratepayer status, and previous
LGA.

Significance difference testing is a statistical test performed to evaluate the difference between two measurements. To identify the statistically
significant differences between the groups of means, ‘One-Way Anova tests’ and ‘Independent Samples T-tests’ were used. ‘Z Tests’ were also
used to determine statistically significant differences between column percentages.

Percentages

All percentages are calculated to the nearest whole number and therefore the total may not exactly equal 100%.

                                                                                                                                               32
Demographics
QD.   Which suburb do you live in?

                      Suburb           N = 404   Suburb              N = 404   Suburb             N = 404
                      Terrigal           5%      Charmhaven            1%      Wadalba              1%
                      Bateau Bay         4%      Chittaway Bay         1%      Watanobbi            1%
                      Narara             4%      Copacabana            1%      West Gosford         1%
                      Umina Beach        4%      Davistown             1%      Woongarrah           1%
                      Berkeley Vale      3%      East Gosford          1%      Wyongah              1%
                      Blue Haven         3%      Empire Bay            1%      Booker Bay
Demographics
QE.   Do you or your household pay Council rates to Central Coast Council
      for any of the following?

                                                                            Employment status                                     N = 404

              Rate type                     N = 404                         Currently in full time paid employment                 39%

                                                                            Currently in part time paid employment (at least 10
                                                                                                                                   13%
                                                                             hours a week)
              Residential rates               80%
                                                                            Currently in casual paid employment                     6%

              Business rates                   3%                           Net: Employed                                          58%

                                                                            Retired from paid employment                           30%

              None of these                   20%
                                                                            Home duties                                             5%

                                                                            Studying at school, TAFE or university                  2%

                                                                            Currently looking for paid employment                   3%

                                                                            Other (disability pension/volunteer)                    1%

                                                                                                                                            34
Q4a.
        Reason for Level of Support (Rate Rise) Continued
       How supportive, if at all, are you of Council proceeding with this Option?
Q4b.   Why do you say that?

                                                                                                          Not at all/                     Very
                                                                                                                         Somewhat
                                                                                               Overall     Not very                    supportive/
                                                                                                                         supportive
                                                                                                          supportive                   Supportive

   Comments about the amalgamation/rate difference in former Gosford/Wyong LGAs                  8%          13%▲            5%             3%▼
   Council is wasting money/don't agree with spending                                            5%           7%▲            4%             1%▼
   More information/transparency is needed                                                       5%           4%             9%▲            1%▼
   Other savings or revenue options should be found                                              5%           8%▲            6%             0%▼
   State or Federal Government should be fixing this                                             3%           6%▲            1%             1%
   No other options                                                                              2%           1%             1%             3%
   Unhappy with the situation/position residents have been put in                                2%           2%             5%             1%
   Will pay if they do the right thing e.g. spend wisely, reverts back to 2.5%                   2%           0%▼            3%             3%
   Would like to see improved service levels                                                     2%           0%▼            4%             3%
   Council does not listen/consider community concerns/input                                     1%           3%▲            0%             0%
   Don't pay rates                                                                               1%           0%             2%▲            0%
   Feel like this is forced upon                                                                 1%           2%             0%             0%
   No guarantee the issue will be fixed/will only pay the debt nothing extra                     1%           2%             1%             0%
   Only increase for one year/no guarantee it won't increase further                             1%           3%▲            0%             0%
   Rates will increase anyway                                                                    1%           0%             0%             2%
   There should be a cheaper alternative                                                         1%           1%             1%             0%
   We won't pay as much as other Council's nearby                                                1%           0%             0%             3%▲
   Will invest in the future/provide jobs/keep the economy growing                               1%           0%             2%             2%
   Willing to pay some but 15% is too much                                                       1%           3%             1%             0%
   Other comments                                                                                7%          11%▲            4%             5%
   Unsure/no real opinion                                                                        2%           0%▼            7%▲            0%
   Base                                                                                          404          180            113            111
                                                                                    ▲▼ = A significantly higher/lower percentage (by level of support)

                                                                                                                                                   35
Reason for Level of Support (Rate Rise) Continued
Q4a.    How supportive, if at all, are you of Council proceeding with this Option?
Q4b.    Why do you say that?
                                                                                               Aware of         Not         Previous    Previous
                                                                                              the SV prior    aware/        Gosford     Wyong
                                                                                                 to call      not sure        LGA         LGA
 Comments about the amalgamation/rate difference in former Gosford/Wyong LGAs                     10%            5%           5%           10%
 Council is wasting money/don't agree with spending                                               5%             4%           5%           4%
 More information/transparency is needed                                                          4%             5%           7%           3%
 Other savings or revenue options should be found                                                 5%             6%           4%           6%
 State or Federal Government should be fixing this                                                5%▲            0%           3%           3%
 No other options                                                                                 2%▲            0%           1%           2%
 Unhappy with the situation/position residents have been put in                                   2%             2%           2%           3%
 Will pay if they do the right thing e.g. spend wisely, reverts back to 2.5%                      2%             2%           2%           2%
 Would like to see improved service levels                                                        2%             2%           3%           1%
 Council does not listen/consider community concerns/input                                        2%             0%           1%           1%
 Don't pay rates                                                                                  1%             1%           0%           1%
 Feel like this is forced upon                                                                    1%             1%           1%           1%
 No guarantee the issue will be fixed/will only pay the debt nothing extra                        2%             1%           2%           1%
 Only increase for one year/no guarantee it won't increase further                                1%             1%           0%           2%▲
 Rates will increase anyway                                                                       1%             0%           0%           1%
 There should be a cheaper alternative                                                            1%             0%           1%           1%
 We won't pay as much as other Council's nearby                                                   0%             1%           1%           0%
 Will invest in the future/provide jobs/keep the economy growing                                  1%             1%           1%           1%
 Willing to pay some but 15% is too much                                                          1%             2%           2%           0%
 Other comments                                                                                   9%             5%           10%          5%
 Unsure/no real opinion                                                                           1%             4%▲          3%           2%
 Base                                                                                             233            171          200          204
                                                                                     ▲▼ = A significantly higher/lower percentage (by awareness/LGA)

                                                                                                                                                   36
Reason for Level of Support (Rate Rise) – Verbatims
Q4a.   How supportive, if at all, are you of Council proceeding with this Option?
Q4b.   Why do you say that?

                                                             Example Verbatim Responses

        Council is to blame/we should not pay for                                     Fix the problem/needs to happen/sounds
            their financial mismanagement                                                            reasonable

       “I don’t think it is fair that the ratepayers have to bail                               “Council needs the money”
       out the council from this financial mismanagement”
                                                                                               “Need to support the council”
       “The ratepayers didn't cause the problem so council
                  should fix it without penalty”                                    “It has to be done even though community shouldn't
                                                                                                      be paying for it”
        “It’s just frustrating to pay more for something that
                                                                                    “This option isn't too expensive considering its only a
                 the community didn’t do to create”
                                                                                              significant increase for one year”

        “The rules have been created but council have
        gone over the limits and spend in accord to their                            “Seems to be the only way forward and out of this
                   responsibility requirements”                                                      financial debt”

            “Need to take responsibility of their own
        mismanagement of funds rather than putting their                             “Ratepayers are the only people that can support
                 losses onto the community”                                                 the Council during this situation”

       “Council has over staffed so the community should                               “This additional funding will improve council
                   not have to pay for that”                                                     mismanagement issues”

                                                                                                                                              37
Reason for Level of Support (Rate Rise) – Verbatims
Q4a.    How supportive, if at all, are you of Council proceeding with this Option?
Q4b.    Why do you say that?

                                                              Example Verbatim Responses

        Would like to keep/maintain service levels                                      Poor financial management/lack of trust
                                                                                            managing finances in the future

       “This option allows Council to continue maintenance                                           “Lost faith in Council”
                  towards the local infrastructure”
                                                                                         “Council will just get into more debt with the
       “Maintenance is necessity for council and the local                                              additional funds”
                       area to recover”                                              “Lost trust in Council to put the increased money into
                                                                                               the community in meaningful ways”
       “This additional funding will prevent the assets from
                                                                                     “Would like to see they are more responsible in future
                           deteriorating”
                                                                                                      if this does happen”

       “This will help the council to continue maintenance
                          of the local roads”                                          “Council doesn't spend funding fairly across the
                                                                                                           area”

           “Would not like to see a decline in any of the                            “Lost faith in Council and don’t believe that the 15%
                              services”                                               even if its the better option will fix all the problems
                                                                                        because their interwoven within how Council
                                                                                                            operates”
        “Don’t want to see our services and assets cut off”                               “Council is untrustworthy with our money”

                                                                                                                                                38
Reason for Level of Support (Rate Rise) – Verbatims
Q4a.    How supportive, if at all, are you of Council proceeding with this Option?
Q4b.    Why do you say that?

                                                              Example Verbatim Responses

       Will be hard on residents/too expensive/can't                                 General comments on poor Council services
                           afford it

                                                                                       “Council don't maintain roads anyway with the
                    “Can’t afford to pay the 15%”                                                money they have spent”

       “Ratepayers are in financial hardship currently where                                “No curb and guttering in my street”
        a rates increase is completely unfair especially the
                    elderly should be a flat fee”                                     “Facilities have already started closing before the
                                                                                           financial decision - Kincumber Tip, etc.”
       “Council need to consider the amount of pensioners
        living in the area who can not afford the larger SRV                            “Don't get the services we currently pay for”
                             increase”

       “Understandably it is not good to increase the debt,                            “Not fair to pay more and receive same service
         however, it is very hard for residents with a rates                                                levels”
                        increase financially”
                                                                                      “Can't get any Council support even though high
       “Tenants are going to struggle to pay higher rent due                                            rates paid”
                      to high cost of living”
                                                                                     “Council still can't keep up with the maintenance of
                                                                                      the roads in the first place, yet they want to take
        “Due to COVID everyone is suffering with financial                            money off the community just to make up for the
         problems so there shouldn't be further increase”                                          money they've already lost”

                                                                                                                                            39
Reason for Level of Support (Rate Rise) – Verbatims
Q4a.   How supportive, if at all, are you of Council proceeding with this Option?
Q4b.   Why do you say that?

                                                             Example Verbatim Responses

               Comments about Council/staff                                           Comments about the amalgamation/rate
                                                                                      difference in former Gosford/Wyong LGAs

                                                                                      “Don't agree with the large difference between
        “Council’s financial department were partaking in
                                                                                                Gosford and Wyong rates”
                        criminal activities”
                                                                                      “Already a special variation for Wyong in 2013”
           “Council are not taking accountability and
                                                                                     “We were unfairly forced into the amalgamation,
                 responsibility for their errors”
                                                                                    which has led to more financial issues and what we
                                                                                                        have now”
        “Council should take more time to sort things out
                                                                                    “Could not vote for the Wyong Mayor, but I have to
                 before doing a rate change”
                                                                                                         pay rates”
                                                                                    “Central Coast rate money has been spent more in
       “Too many Council workers that are not productive”
                                                                                    the Gosford area when they have been paying less
                                                                                      in rates for the past 4 years so it's not fair for us to
       “The Government needs to do a proper equity into                                   have to keep paying increased amounts”
         what happened to hold people accountable”
                                                                                    “Gosford has more voters therefore more control, so
           “Incompetent Councilor's and due to their                                 Wyong doesn't get a choice in particular matters”
        mismanagement, all Councilor's should be stood
                           down”
                                                                                    “Want the harmonisation of rates. It’s very important
            “Need to do more internal management”                                          to get the two areas united in rates”

                                                                                                                                                 40
Appendix B:
The Questionnaire
42
43
44
The information contained herein is believed to be reliable and accurate, however, no guarantee is given as to its
accuracy and reliability, and no responsibility or liability for any information, opinions or commentary contained herein, or
 for any consequences of its use, will be accepted by Micromex Research, or by any person involved in the preparation
                                                           of this report.                                                 45
Telephone: (02) 4352 2388
 Web: www.micromex.com.au
Email: mark@micromex.com.au
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