Kiama Municipal Council voted at an Extraordinary Meeting on Tuesday night to adopt the parameters outlined in a report to achieve a balanced operating budget by the end of the 2026-27 financial year.
In order to meet the requirements of the Performance Improvement Order implemented by the NSW Government four years ago, Council needs to make up a budget deficit of $4.5 million by the end of June next year.
The report recommends a focus on costs and service reductions.
Council will conduct a review of the organisation's staff structure, implement the findings of a fleet services review, seek debt financing of $10 million for fire safety works at Blue Haven Terralong, proceed to market sounding processes for catalyst sites and implement a Council waste services review, Along with other measures.
Councillor Stuart Larkins moved an amendment which specifically called out the ongoing protections for the Kiama Pilot's Cottage, restrictions on Councillor conference attendance and noted the temporary, not permanent, nature of the changes.
Councillors also voted on an independent Asset Condition Report for Blue Haven Terralong which delegates Chief Executive Officer Jane Stroud to explore options for the retirement village.
Capital works and building safety rectification at Blue Haven Terralong over the next decade is projected to be $45 million to upgrade the facility from a rating of "poor" to "fair" with additional maintenance and refurbishment costs resulting in total required expenditure of $51.2 million.
Council staff now have until the end of the week to prepare a draft budget so that the appropriate information can be included in the business papers when they are released next Wednesday in the lead-up to the next Ordinary Meeting on 21 April.
The draft budget will be placed on public exhibition for 28 days for consultation to give ample opportunity for a range of engagements from the local community.
Acting Mayor Melissa Matters told the meeting that Council needed to roll up their sleeves to do what was best for Kiama.
"I don't want to see an administrator make these calls," she said.
"The community put us in this room to make those decisions for them. They didn't elect us to blame the past, to blame each other, to take pot shots at staff who are doing their best in providing advice and options. The community elected us to listen, to read, to learn and to get it done.
"We haven't ever done a budget parameters report before. We are giving our staff some direction on what measures should be pursued to build a draft budget that will then go on display for 28 days, like we do every single year.
"I don't want to hear about the timing being inconvenient and not ideal - nothing is ideal here at Kiama Municipal Council. We are doing something different.
"We are being fully transparent, done in full view of the public - all reports are public and nothing has been hidden from anyone. We heard from passionate and caring community members during tonight's Public Forum, who spoke well and with respect. I sincerely thank each of the speakers for their contribution."
Councillor Matters thanked her fellow Councillors for having the critical conversations required in this difficult period for determining Kiama's future.
"I thank the current and former members of Council's Finance and Major Projects Advisory Committee over the past three years for their strong and strategic advice," Cr Matters added.
"Their wisdom as community members has helped shape the decisions that we have made in the preparation of the budget.
"We acknowledge that some of these decisions that are being considered will not be popular. We hope that some will be temporary and we can re-invest in those areas in the future when Council is in a more financially stable position.
"I'd like to reinforce to the community the need for calm and respectful conversations. We are making legacy-making decisions and attacking individuals is never helpful."
Ms Stroud said Council had made significant inroads over the past four years since the PIO was implemented.
"Our staff are the most valuable asset this organisation has and since inheriting this situation, I have moved mountains to turn finances around and it pains me no end that I have to consider a restructure of staff but we have to live within our means.
"Council staff conduct their roles with respect and diligence. We will conduct a range of meetings with them to talk about what this process means as working public servants.
"Having received direction from the Councillors, a consultation process will be undertaken. Workplace rights will be protected and industrial processes will be followed."
Staff meetings will kick off on Wednesday with the relevant unions on hand to talk to them about the draft budget.
