Open letter from Kiama Council

Dear community members of the Kiama Municipality,

During the past 12 months we’ve been openly sharing information about significant financial issues facing Kiama Council.

This situation, which involves our aged care business, Blue Haven, has been confirmed by the NSW Auditor General and the issuing of a Performance Improvement Order by the NSW Minister for Local Government.

Council is holding an extraordinary meeting on Tuesday 28 February to consider a number of critical matters to help re-establish the path to financial sustainability and meet the requirements of the Performance Improvement Order. The extraordinary meeting agenda includes:

• Blue Haven business case

• Liquidity management plan

• Cash flow plan

• TCorp repayment of debt

• Distribution of proceeds of the Akuna Street sale

• Property divestment plan

• Service review scope for commercial services

Once again, Council will consider stepping away fully from our aged care business.

Council has already formally resolved to divest itself of Blue Haven Bonaira and associated assets. An independent business case has now recommended that Council also considers the divestment of the Blue Haven Terralong site and its assets.

The business case, which was developed after a thorough review of Blue Haven, makes it clear that this is what it will take to restore not only our financial sustainability but to allow Council to refocus on the core business of local government.

Council wants to assure you that, no matter what is decided, Blue Haven will continue as an aged care provider and will remain a loved and valued asset in the community. No one will lose their home, or their place or care in our

Livestream

Kiama Council cordially invites all community members to attend the extraordinary meeting of Council on Tuesday 28 February. You can attend either in person (registration is essential, see far right) or watch via our livestream at www.kiama.nsw.gov.au/livestream residential aged care facility. These will simply be operated under new ownership.

We know many in our community feel a strong emotional connection to Blue Haven and the business case recommendation to divest it may be hard to hear.

It is important to understand the facts. This is why we’ve shared so much information about the operation of Council as a business, the impact the construction of Blue Haven Bonaira and the ongoing costs of running a complex aged care business has had on our financial position.

We urge you to read the reports (in the meeting agenda, link below) along with the information and the previous reports we’ve put out over the past 12 months via our website. Truly consider what is best for Kiama Council now and for many years to come.

We also invite you all to attend the extraordinary council meeting on 28 February – either in person (registration is essential - please see link below) or via our livestream. Our livestream recording will also be available via our website after the meeting.

The extraordinary meeting is when and where your elected representatives will decide how we move forward.

Whatever is decided, this process has enabled us to examine Council’s operations and start to think about who we are, without running a large and complex aged care business. We’ll be consulting with the community extensively over the next 12-24 months on this.

We will want to hear from you in the near future about what you want Kiama Municipal Council to be. Which community services, projects, events, infrastructure and facilities matter the most to you, what service levels we need and how we focus our resources where they’re most needed.

We look forward to you sharing this journey with us.

From the team at Kiama Municipal Council

Agenda & minutes

This is an important moment for Kiama Council and the best way to discover what is happening is to read, see and hear it for yourself. Please read the reports in our business papers at www.kiama.nsw.gov.au/council/ council-meetings/agendas-minutes

Register to attend

If you are planning to attend the meeting in person, registration is vital as seating is limited. Please register your attendance via the link below if you’re planning to come in person on Tuesday 28 February from 1pm (public access) or 2.30pm (extraordinary meeting).

www.kiama.nsw.gov.au/councilmeeting