Kiama Municipal Council has reached a critical juncture in the future of Blue Haven Terralong and a decision about options for the retirement village facility will be considered by Councillors next Tuesday at an Extraordinary Meeting.
In compliance with the State Government imposed Performance Improvement Order, Council will table an independent Asset Condition Report for the retirement village at the meeting.
The Asset Condition Report has indicated that funding in the order of $51.2 million is needed for maintenance works in the next 10 years to bring the facility from a standard of "poor" to "average".
Bridging the funding gap is likely to need support from other levels of government or innovative ways of managing and/or delivering the retirement village service.
Acting Kiama Mayor Melissa Matters said this was a critical point in understanding the future of Blue Haven Terralong.
"We have been very open and honest about the fact that the amount of money required to maintain the buildings from Stages 1-5 is beyond what we currently have budgeted and planned, or expected," Councillor Matters said.
"I share with the residents in their concerns and shock over the amount of funding needed.
"These Council assets are also their homes, and I know myself and my fellow Councillors understand the gravity of that. Our immediate focus is how we ensure financial sustainability for Council and how we pursue options to lock in that funding that is so desperately needed for Blue Haven Terralong.
"It's important we tackle this challenge together as a community, and with affected retirement village residents.
"I acknowledge this is hard, but we want to be transparent with the facts, work out some options for the future and consider how and if, we can fund this.
"No decisions have been made. This is the start of the process and residents will remain the top priority."
Council has undertaken a number of reviews of Blue Haven Terralong, including building condition assessments and a fire safety compliance works and service review to ensure it continues to meet its responsibilities as a provider.
Residents have been informed about the report and have been encouraged to read all the documents and facts associated with this condition report, which are available on the Council website and have also been supplied to the community gathering spaces.
Council's Chief Executive Officer, Jane Stroud, and Director Corporate & Commercial, Joe Gaudiosi will meet residents at Blue Haven Terralong next week to discuss the road ahead and respond to questions as they arise.
Ms Stroud said: "I spoke recently at a meeting with residents and shared my concerns that the condition report makes it really plain that many millions of dollars are needed to be spent, far beyond what our Council budget can accommodate alone.
"Without considering Special Rate Variations or more innovative models of leasing, joint venture, divestments or whole of government solutions, we are stuck between a rock and a hard place with a series of very aged assets that need redevelopment and investment.
"With cost of living pressures everywhere, we need to find some solutions and think differently to help our retirement village residents continue to age well in pace in assets that are safe, useable and modern.
"Sadly, we are a long way from that.
"I know this is a hard and emotive conversation for our community, but it's my job to give Council the facts and to share those with our community - even if they are uncomfortable - and to try and find a solution.
"Action must be taken and I would very much like to reassure the residents that we care for them and their homes, and will continue to do so while we work through this."
