Central Coast Council administrator Dick Persson has recommended suspended councillors should be sacked and not return prior to September's NSW local government elections.
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In his final report to the State Government, Mr Persson also recommended that Local Government Minister Shelley Hancock delay the Central Coast's election until December 2022 to allow more time to stabilise the financial calamity.
"I'm calling for an inquiry but not for the reasons others might think, we know what happened here and my two previous reports provide this detail, there is nothing more to uncover. I encourage the community not to fall for the politicking of this issue," Mr Persson said.
"I believe the best outcome for Central Coast Council and the community would be a further extended period under administration, this would allow the new chief executive officer, Mr David Farmer and a new administrator adequate time to complete the merger and rebuild community confidence without the distraction of elected representatives intent on playing out broader political agendas."
The 13 councillors were suspended last October after it was revealed the council faced an $89 million budget blowout and was unable to pay staff.
It had also accrued debts in excess of $565 million.
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Mr Persson restated his previous view that financial mismanagement rather than the amalgamation of Gosford and Wyong councils was the root cause of the collapse.
"The story is quite simple, this is not the fault of the merger. This gets down to simple mismanagement and the inadequacies of the leaders of the organisation in terms of the financial control," Mr Persson said in a Facebook video.
"The Ship was heading towards the rocks, [they] took actions that were too little too late, commissioning consultants reports when what was needed was to pull everyone together and say we have got to stop spending;
we are spending much more than we are earning. The failure of the councillors to recognise this problem, in my view, is unforgivable. That is who is responsible."
Mr Persson outlined a strategy in January to reduce staffing levels by 20 per cent, reduce materials and contracts by $20million and sell up to $60million in assets.
It will also obtain bank loans worth $150million.
The council's projected financial position at 30 June 2021 is expected to be a loss of $115.1million.
In the event the minister allows the councillors to return prior to the election, Mr Persson recommended performance improvement orders be put in place, including the appointment of a financial controller.
He recommended Rik Hart be appointed to the role.
Ms Hancock said she would consider the Mr Persson's report and announce her decision about the council's future before the end of April.
"The local community has a right to feel anger and frustration at the gross mismanagement that led to the financial collapse," she said.
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