Kiama Municipal Council welcomes the announcement by NSW Minister for Local Government Ron Hoenig that he has given notice of a proposed variation for its existing Performance Improvement Order.
The proposed variation would extend by 12 months the deadline for Council to achieve a balanced budget, to the 2027-28 financial year.
This means Council will now be able to retain its non-legislated services after reductions had been proposed in its draft budget.
Council has been working rigorously over the past four years to achieve the 74 actionable items in the PIO received from the NSW Office of Local Government with only four remaining.
The first step in the process is for Council to consider the information contained in the updated PIO and CEO Jane Stroud will prepare a supplementary report for next Tuesday's Ordinary Meeting.
Council has 14 days to respond to the Minister via a resolution.
Kiama Mayor Cameron McDonald thanked Minister Hoenig for allowing Council extra time to balance its budget.
"I'd like to acknowledge Minister Hoenig for taking time last week to meet with Jane and I directly while we were at Parliament House for the LG8 meeting," he said.
"It was heartening to chat first-hand and listen to his in-depth knowledge of our local government's unique situation and considered views of our circumstances.
"We welcome the offer of a variation to the PIO. Plenty of hard work has already been done to get Kiama Council in a position where we are close to completing all of its requirements.
"Now that we have until 30 June 2028 as the deadline, it means Council will not have to make changes to our community and youth services, our libraries, Kiama Leisure Centre, the Visitor Information Centre and the Pilot's Cottage Museum.
"I'd like to acknowledge the positive feedback and contribution of our community members and countless hours that have gone on behind the scenes by Council's staff to bring us to this positive outcome."
NSW Minister for Local Government Ron Hoenig and Kiama Mayor Cameron McDonald at the LG8 meeting at Parliament House.
Under the proposed PIO variation, Council would be required to:
prepare an independent business case for Blue Haven Terralong identifying the most sustainable long-term operating model
identify potential recurrent revenue measures
provide the Office of Local Government with a report on proposed savings measures
update its Finance and Governance Improvement Plan to include a strategy to improve cash balances and end the practice of adopting deficit operating budgets
retain domestic waste services in-house
strengthen its ongoing financial reporting to the Office of Local Government.
Ms Stroud thanked the United Services Union for its strong collaboration and partnership in making the PIO request to Minister Hoenig as well as the Office of Local Government Deputy Secretary Brett Whitworth for regularly meeting with Council during this process.
"Our ability to meet the PIO is looking more positive than ever now," she said.
"We know from our three holiday park offers that our ability to clear the projected deficit is certain, provided we can get through the tender process with a successful outcome that finds the right partnership arrangement.
"We'll still need to carefully manage our staff vacancies as well as right-sizing the organisation through a restructure.
"We need to maintain very careful financial management as well as progressing our catalyst sites for long-term financial sustainability."
Minister Hoenig said "Kiama Municipal Council has made progress, but the job is not finished.
"This proposed variation gives Council more time to work through sustainable revenue options and staged savings measures as it works to bring its budget back into balance.
"The Performance Improvement Order did not create Kiama Council's financial problems. It remains in place because those problems have not yet been fully resolved.
"The Performance Improvement Order remains necessary because Kiama Council still faces serious financial sustainability challenges.
"The order does not dictate every decision Council has to make. Council has to work that out for itself.
"But Council must do that work. This variation is about giving Council more time to put forward a more measured path to financial sustainability, while minimising the impact on local services, jobs and the community."
Council will hold an Extraordinary Meeting on 30 June to consider the final recommendations for this suite of Integrated Planning & Reporting documents.
Kiama will welcome Premier Chris Minns and his NSW Government Ministers to The Pavilion next Tuesday for their first Community Cabinet of the year.
