Kiama Council has been given a 12-month reprieve to bring in a balanced budget – now it has to decide whether to accept it and the associated conditions. Photo: Keeli Dyson.
Kiama Council will hold an extraordinary meeting on Wednesday (27 May) to decide whether to accept a 12-month extension to its performance improvement order.
Under the existing order (PIO) council had to achieve a balanced budget by the end of the 2026-2027 financial year. Council’s draft budget was considering a number of cuts to services and organisations to meet the obligation.
However, on 13 May NSW Local Government Minister Ron Hoenig issued a notice of intention to vary the order, effectively giving council a 12-month extension to bring in a balanced budget.
As well, at least three operators have expressed interest in a partnership in council’s five holiday parks, which would help to alleviate council’s budget shortfall of $4.5 million.
Kiama Mayor Cameron McDonald has welcomed the proposed PIO variation and is confident council can achieve the required outcomes within the allotted timeframe.
“This variation to the PIO will be very beneficial for our community and we look forward to meeting these objectives,” he said.
“Overall, it’s positive news because it means we won’t have to reduce community services or our staff.
“We still need to be careful – manage resources, and live within our means. Tough calls will still need to be made – but we have more time up our sleeves and can breathe a little easier while we work through it all.”
Under the proposed variation, council is required to:
- Adopt a financially sustainable budget pathway by specified dates, incorporating a one-year extension to the need to achieve a balanced budget
- Sequence budget repair measures before higher-impact staffing, asset sales and outsourcing measures are considered
- Prepare a strategic business case for Blue Haven Terralong Village
- Review strategic assets and revenue opportunities
- Strengthen reporting requirements to the Office of Local Government
- Not outsource its domestic waste management service
- Complete additional governance and financial management actions within specified timeframes.
Wednesday’s extraordinary meeting will start at 5 pm at Kiama Council Chambers.
