Central Coast faces $20m annual grants gap as council weighs service and project cuts

Central Coast Council is preparing for a possible $20 million annual reduction in Financial Assistance Grants, putting services, capital works and long-term financial planning under pressure across the region.

Councillors voted to develop two ways to cover the potential gap: $20 million in annual operational and capital savings, or $10 million in savings combined with $10 million in additional revenue from sources other than rates, fees and charges.

Any options must set out their feasibility, timing, risks and service impacts, while separating recurring savings and revenue from one-off measures.

Council will also prepare a list of contingency cuts to programs and identify additional funding opportunities. No $20 million cut or specific service closure was approved.

Councillors backed an amended draft submission to the NSW Local Government Grants Commission. It calls for a funding model that better reflects councils’ practical revenue-raising capacity, community affordability, statutory revenue constraints and the cost of providing services in coastal and tourism-based areas.

The issue will return at a councillor workshop planned for the last week of October 2026. A report is due to the Governance and Finance Committee in November, before the quarterly review. Council will submit its response to the Commission’s methodology consultation after the amended draft is finalised.

The funding pressure is being considered alongside competing capital projects. Council approved the $985,000 Gosford City Indoor Sports Stadium for delivery over three years. The budget offset reduced the amount currently allocated to the Toukley Community Facilities Redevelopment Project from $500,000 to $100,000.