Mayor Cameron McDonald has welcomed the announcement from the NSW Local Government Grants Commission that proposed changes to the Commonwealth Financial Assistance Grants funding system will not be going ahead.
The Office of Local Government recently informed councils statewide that the independent commission had proposed a radical overhaul of the methodology for financial assistance grants.
Kiama Municipal Council's annual allocation would have been slashed by more than half under the proposed methodology with funding reduced from $2.558 million to $1.062m.
CEO Jane Frawley, on behalf of Kiama Council, recently made a submission to the Local Government Grants Commission and also wrote to NSW Premier Chris Minns and Local Government Minister Ron Hoenig to express concerns about the proposed funding model.
"This is a great result for Kiama, our Council and our ratepayers, who would have borne the brunt of the funding cutbacks," Mayor McDonald said.
"I was vocal in my criticism of the proposed changes recently. Our stance is clear - we don't want to see any council go backwards,
"We didn't think it was fair that the people of Kiama would have suffered a reduction in funds of more than 50 per cent and I'm pleased to see that our concerns have been heard.
"I thank the NSW Government and the Local Government Grants Commission for reconsidering the methodology which would not just affected Kiama but many other councils across the state, including some of our neighbouring areas in Wollongong, Shoalhaven and Wingecarribee.
"The Commonwealth Financial Assistance Grants funding system still needs further examination so that it can be more transparent and fairer in the future."
Deputy Mayor Stuart Larkins said: "I think this decision by the NSW Local Government Grants Commission not to proceed with the proposed changes to the methodology to financial assistance grants is the correct one.
''Mayor McDonald and I were at the Illawarra Shoalhaven Joint Organisation (ISJO) board meeting on Friday where this was discussed with President of Local Government NSW Mayor Darcy Byrne. I also personally thanked him and LGNSW for their advocacy and support for Kiama Municipal Council on this matter.''
Mayor McDonald added that with the release of a new advocacy plan, Advocating for Kiama 2026-28, Kiama Council was entering a crucial phase in planning critical infrastructure for the future.
"We look forward to continuing to work with our local State Member of Parliament Katelin McInerney on partnerships with the NSW Government," he said.
"Our Advocacy Plan is centred around four interconnected essential pillars of Housing, Infrastructure, Liveability and Connections, and with appropriate funding from other levels of government, we can deliver the projects, services and lifestyle that our community deserves."
