Council Accepts New Performance Improvement Order

Kiama Council

Kiama coastline

Kiama Municipal Council has voted unanimously to accept the proposed variation to its Performance Improvement Order from NSW Minister for Local Government Ron Hoenig.

Councillors held an Extraordinary Meeting on Wednesday night to discuss the proposal which was sent by Minister Hoenig earlier this month.

CEO Jane Stroud will write to the Minister today to confirm that Council will work towards achieving the requirements of the new PIO, which includes balancing the budget by the end of the 2027-28 financial year.

Among the other requirements are for Council to:

  • Adopt a financially sustainable budget pathway by specified dates, incorporating a one-year extension to the need to achieve a balanced budget.

  • Sequence budget repair measures before higher-impact staffing, asset sales and outsourcing measures are considered.

  • Prepare a strategic business case for Blue Haven Terralong Village.

  • Review strategic assets and revenue opportunities.

  • Strengthen reporting requirements to the Office of Local Government.

  • Not outsource its domestic waste management service.

  • Complete additional governance and financial management actions within specified timeframes.

Kiama Mayor Cameron McDonald and Ms Stroud recently met directly with Minister Hoenig at NSW Parliament House during the LG8 meetings to discuss Council's situation face-to-face.

"The Minister demonstrated a detailed understanding of the progress Council has made over the past four years during one of the most difficult periods in our history and the challenges that remain," Mayor McDonald said.

"Behind the scenes there have been many long hours of work put in to rebuild confidence in Kiama Council's future and that is now being recognised."

Mayor McDonald added that the variation to the PIO sets a more measured and practical pathway toward long-term financial sustainability for Council but there is still significant work to be done.

"We are now able to look at options for many of the services our community values, including youth services, tourism services, our libraries, the Visitor Information Centre and Kiama Leisure Centre," he said.

"But it doesn't mean all the difficult decisions before Council have suddenly vanished."

The public exhibition period has closed for the Integrated Planning & Reporting (IP&R) documents which explain how Council is proposing to deliver services, manage assets and work towards long‑term financial sustainability - the draft 2026-27 Budget, Delivery Program and Operational Plan (DPOP), Fees & Charges, and Statement of Revenue Policy.

Staff are currently reviewing all feedback on these documents and the final versions will be presented to Council to consider for adoption at an Extraordinary Meeting on 30 June.

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