Kiama Council mid-year review

As we reach the middle of the calendar year and the end of the financial year, I wanted to update you on some of the critical work we at Kiama Council have done.

Since your current Councillors and I were elected for this term, Council has been subject to its fair share of scrutiny This is, in part, because we have been so transparent about what has come to light in terms of our financial situation.

We’ve been open with our community in sharing the issues Kiama Council is facing.

In February 2022, Council released a State of the Organisation Report, which identified various issues and challenges related to financial sustainability and resourcing.

In April 2022, the initial Strategic Improvement Plan (SIP) was created, outlining actions to address the identified issues.

The NSW Audit Office raised concerns, leading the NSW Office of Local Government (OLG) to monitor Kiama Council’s progress.

In November 2022, the OLG issued a Performance Improvement Order (PIO) that incorporated key actions from the SIP Since then we have achieved a lot. We take this opportunity to update you - our community - on our progress.

Neil Reilly, Mayor of Kiama

Key actions from the SIP and PIO and other reports

Obtained accreditation for our Blue Haven aged care facility operations

Plan to address outstanding actions from Blue Haven accreditation report accepted by Aged Care Commission

Sold property holdings in Akuna Street, which has gone some way to restore reserves and working capital

Decided to divest our Blue Haven Bonaira property and aged care, residential, home care, and community transport operations (subject to the reclassification of the land)

Developing plans for liquidity, property, and cashflow improvements

Explored scenarios for the Blue Haven Terralong site and resolved to seek a dilapidation/asset report (and cost) along with options for Havilah Place and the Kiama Community Garden

Repaid $30m of our debt to TCorp for the Blue Haven Bonaira development and have negotiated a 2-year extension for the remaining $15m

Resolved to modernise municipal operations, review business units and services, and advance enterprise technology platforms

Completed 18 recommendations from the Forsyths forensic accounting assessment –April 2022 (at April 2023)

Completed three out of four recommendations from Forsyths Developer Contribution reserves review – April 2022 (at April 2023)

Completed 18 recommendations from the Hopwood Governance report

First Strategic Improvement Plan closed off (75 actions completed) and 12 outstanding actions moved to Strategic Improvement Plan 2