Kiama Council has cleared its $60 million loan for Blue Haven Bonaira to the NSW Government ahead of schedule.
Following the settlement of Blue Haven Bonaira divestment last month, Council repaid the final instalment of $14.6 million on Wednesday (7 May) to the NSW Treasury Corporation, in advance of the August 2025 deadline which needed to be extended in 2023 given Council's financial position at that time.
Mayor Cameron McDonald said the repayment marked a significant milestone in Council's financial recovery.
"This final payment improves our Debt Service Cover Ratio, returning it to positive territory, satisfying another requirement of the NSW Government's Performance Improvement Order," Cr McDonald said.
"I want to thank the NSW Government for their support, through TCorp, allowing Council the extended time to clear the debt."
Council's remaining loan obligations are $5.6 million for a range of infrastructure projects at our Holiday Parks and Gerringong Library as well as road and bridge improvements.
CEO Jane Stroud said that managing the extended repayment was a significant part of the challenge of the Blue Haven Bonaira divestment, and overall Performance Improvement Order (PIO).
"Staff across our organisation have done a great job completing the difficult divestment, including acquitting this loan, while ensuring we have the necessary cash reserves to continue our core Council operations," Ms Stroud said.
"This has meant we have been able to continue providing services to our community, and confidence to our external regulators, auditors and the NSW Government."
"This is another demonstration that we are well on track to meet the goal of being financial sustainable by 2026/2027."
