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Included with Hawkesbury Council winter rates notice was “your new look community newsletter Hawkesbury Buzz”. Inside is a cheery cartoon setting our Council’s finances with budget items represented by buzzing bees showing a honey hot of $20 million in financial reserves.
But the real story has a sting, hidden in the buzzing bee budget cartoon is a $32.5 million debt from one of the worst financial bungles in Hawkesbury’s history.
The Contract That Should Never Have Happened
Council signed a “cost plus 25%” sewer repair contract — with no fixed end date and no cap on costs. Business leaders and former public servants say they’ve never seen anything like it. Predictably, costs blew out.
When Council tried to claw money back through the Supreme Court action, they lost and incurred a further $4 million in legal costs. The judge noted the contract was signed and then the schedule of fees added the next day as per the contract. The cost of the debacle was and extraordinary totally about $40million - almost half Hawkesbury’s annual rate income and Council was forced to borrow $32.5 million.
The sting hidden in the cartoon
The sewer loan is recorded within Council’s $41.4 million waste management buzzing bee. Borrowing costs (interest) are $1.5 million annually, and the loan balance is expected to be $29.3 million at the end of June 2025. The repayments have been taken from higher sewerage charges for local residents higher than those faced by customers of Sydney Water, an unprecedented situation for Hawkesbury.
“Locals are paying more to flush a toilet than Sydneysiders. That’s right — Hawkesbury families are stuck with the highest poo tax in the state. It’s bloody outrageous” said Paul a South Windsor resident.
$20 Million Reserves in a honey pot?
So why not use Council’s $20 million reserves illustrated as a honey pot in the cartoon to pay it down this debt? Council says their hands are tied, and by law the sewer business must run separate from the general budget.
No Transparency – just cartoon accountability.
“Worse still, no one has been held responsible. Reports into what went wrong have been classified as commercial in confidence by Council.” says Mick a North Richmond resident. “While sewage users are left to pay this extraordinary bill, all rate payers remain at risk of another financial disaster.”
“Hawkesbury deserves answers — and accountability — not just a cartoon newsletter honey-coating a financial mess.” Says Sonya of Richmond.
While Council may find cartoons an effective way to read financial statements residents expect numbers and an explanation of exactly what income and expenditure has occurred in a financial year.
