Kiama Council could be celebrating if a joint venture for its five holiday parks, including this Werri Beach park, wipes out its budget deficit. Photo: Region.
Kiama Mayor Cameron McDonald has urged his community to give feedback on the council’s controversial draft 2026-27 budget, pledging that “you will be heard”.
The draft budget will go on public exhibition for 28 days from Friday (24 April) after councillors considered a range of options at this week’s meeting (21 April).
Council needs to make up a deficit of $4.5 million by the end of June next year to meet the requirements of the performance improvement order (PIO) which was implemented by the NSW Government four years ago. Its proposals for potential closures or cuts to services such as youth, cultural and tourism, alongside reduced hours at libraries, created furore in the community.
However, there may be some relief in sight, after an “unsolicited proposal and offer” from Reflections Holiday Parks to potentially form a joint venture partnership in regards to council’s Kiama Coast Holiday Parks.
“Importantly, this is an option that was not on the table even a week ago,” councillor McDonald added.
“Until now, council has been working with the information and pathways available to us to build a budget that meets the PIO and this does provide another option to consider.
“This is a complex matter and it’s essential that we take the time to fully understand the implications before final decisions are made. We need to understand if the offer stacks up as our holiday parks portfolio is very valuable.”
Council has five holiday parks – Kiama Harbour Cabins, Surf Beach Holiday Park, Kendalls Beach Holiday Park, Werri Beach Holiday Park and Seven Mile Beach Holiday Park.
“This is an exciting proposal that has emerged,” Cr McDonald said.
“Because it has a material impact that changes our trajectory, it needs to be properly worked through before any final deal or final resolution is reached. There are many approval processes and sign-offs needed, and this is the start, not the end of the process.
“The proposed partnership between Kiama Council and Reflections Holidays could help shape the future of our tourism assets, while significantly improving council’s financial position.”
Reflections Holidays is the largest holiday park group in NSW which reinvests profits back into the 40 holiday parks and 40 community Crown Reserves it operates, including three on the Far South Coast.
Few details have been released about Reflections’ offer, as councillors discussed the matter behind closed doors due to its commercial confidentiality.
Council agreed the CEO Jane Stroud would continue to work with Reflections on the potential offer and that subject to due diligence, any proceeds arising from it would be incorporated into the draft budget.
Cr McDonald told this week’s meeting that council wanted to hear more from Kiama MP Katelin McInerney and NSW Local Government Minister Ron Hoenig as to how they could assist council as it “looked down the barrel” of the PIO.
“We have heard from the community that there are significant concerns about where cuts are coming from, where the expenses are being reduced,” he said.
“We are acutely aware that some of these proposals delve right into what it is to be a community; it’s not pleasant.
“We would like to fully hear from our community; there will be 28 days to respond and comment, and believe you me, we do listen.”
Key strategies outlined in the 2026-27 draft budget include:
- Continued operational efficiencies
- Service reductions
- Staffing reductions to “rightsize” council’s operations
- A special rate variation included as an alternate in the Long Term Financial Plan but is not a preferred scenario “at this stage”
- Capital works reductions
- A $10 million loan for Blue Haven Terralong fire safety work which is needed to ensure the retirement village complies with regulations
- OneCouncil implementation – financial and operating software platform.
“There are still many important decisions that need to be made and we will do so in the coming weeks after listening to the community about what matters to them,” Cr McDonald said.
All documents are drafts and council officers will refine elements following the public exhibition period.
The draft budget will be available for feedback on council’s website.
