CCBR Business Review

24 David McPherson, Marc Roberts and Josh Searle The previous CFO, Mr Craig Norman and CEO, Mr Gary Murphy were aware of this unlawful use of funds.” “There is no evidence of theft or corrup- tion,” he said. “The Council’s rapid financial decline is in part due to several matters, with only the IT costs directly related to the amalgamation: 1. The substantial costs in upgrading IT systems and infrastructure (net of $10m Government grant) is $50m, with $8m ongoing. 2. The substantial costs of an industrial dis- pute concerning 38/35 hour week, uni- fied salary scale and other harmonisation costs [$25.3m, with $3.2m on-going]. 3. The $39m loss of revenue (compared to 2018/19) from the 2019 IPART pricing determination for water, sewerage, storm- water drainage and trade waste services. 4. The increased costs and revenue losses brought about by the bushfires, floods and COVID-19 are estimated at $10.5m. This very substantial sum of new costs seems to have been overlooked by the new Council as it embarked on major spending programmes in both capital works and gen- eral operations. “A catastrophic error of the amalgamated Council was their failure to understand that the organisation had less than $5m in unre- stricted cash (excluding Water and Sewer Fund) at the beginning of amalgamation. In the first year of operation, there was an operating surplus of $65m, which was pre- dominantly driven by a one-off operating grant of approximately $40m. “In respect of staffing there are now 250 more people (FTE) employed now than at the time of the amalgamation. Additionally Council embarked on a number of expansive initiatives, some with highly paid staff that resulted in employee costs outstripping projected growth. Actions are in-train to deal with this sit- uation, however the willingness of lenders to provide necessary further loans [either private or public] is totally dependent upon the Council embarking on an urgent turnaround strategy to ensure next year’s budget is at least ‘break even’. Central Coast Council – A financial disaster CONTINUED FROM PAGE 7 Phoenix Packaging Expands at Somersby The Central Coast’s only manufacturer of cardboard cartons and packaging solu- tions moved into a 2,500 sqm warehouse at Somersby in early 2020, substantially increasing their manufacturing, design and logistics capacity. Phoenix was set up in 2016 by Marc Roberts, David McPherson and Josh Searle who had worked together in a similar business which was forced to close. Phoenix has a mission to offer something the large companies don’t - applying their experience in working with businesses of any size to solve packaging issues to genu- inely improve their business. One of their strengths is a full design ser- vice to help their customers create product specific packaging from prototype design and material testing to the final product, produced on site and even with instant full digital colour printing direct to cardboard, a unique offering indeed, meaning there are no expensive print plates required. Phoenix is the only company that has the capability to offer short run along with large volume production that ensures they can meet a large existing customer’s needs while still being able to support a startup business and supporting them as they grow. Commenting on their success Phoenix Director Marc Roberts said, “We are excited to continue to serve the needs of small to medium sized businesses, or businesses who want unique solutions for their packaging. M A J O R B U S I N E S S S T O R I E S O F 2 0 2 0 GET A HIGHER RETURN ON YOUR AD SPEND WITH CCBR HERE’S WHY ADVERTISING IN CCBR WORKS... • Readers actually see your ad! • Most widely read and trusted business publication on the Central Coast • Surveys show 94% of readers are likely to contact advertisers • Quality editorial content guarantees readers retain their CCBR’s for over 3 months • Reach over 20,000 business readers each month Online advertising works well for some but it’s not for everyone. STOP PAYING TOO MUCH FOR TYRE-KICKERS ON GOOGLE ADS ADVERTISING IS AN INVESTMENT IN YOUR BUSINESS IT’S OUR BUSINESS TO HELP YOUR BUSINESS Call Edgar Adams now - The voice of business on the Central Coast 4367 0733 - 0404 472 571 or email: edgaradams@ccbusinessreview.com.au CENTRAL COAST BUSINESS REVIEW YEARBOOK 2020