Costly Bluehaven Mayor could be directly elected

Kiama Council is unable to accurately determine how much it cost to construct Blue Haven Bonaira, and may have used restricted funds to complete it.

The revelations are contained in an executive summary of a report from auditors Forsyths, which offers a glimpse into the “significant deficiencies in council’s management” of Blue Haven Bonaira which has the primary reason for council’s current financial predicament.

The full report was given to KMC in April, but the executive summary has just been released, with some aspects remaining confidential such as payouts to executives in 2018 and 2021 which contributed to Council’s current financial position.

The report reveals that in 2016, KMC underestimated the cost of the project by approximately $30 million, expecting the total cost would be around $74 million. The actual cost is estimated at $105.4 million, however, Forsyths states that it did not have enough information to determine the final price tag.

“Council did not have data to support total project cost within one source of truth as data was split over multiple work orders. As a result, we were required to utilise underlying accounting data to estimate total final project cost,” the Forsyths report states.

KMC took responsibility for project management for Blue Haven Bonaira in February 2020 after it was opened to the public. However the quality of project management was “signifi- cantly reduced” once KMC took over, as there were still defects yet to be rectified and project variations to be finalised. At this stage, total project spend was approximately $98 million.

The Forsyths report also reveals that $3.4 million of developer contribution funds that were allocated for upgrades to Council Chambers was spent on Blue Haven Bonaira’s construction.

“From our understanding of EPA [Environmental Planning and Assessment] regulation, the use of these funds for Blue Haven is not allowed and therefore these funds need to be returned to the developer contribution external restriction,” the report states.

Speaking to The Bugle, Kiama Mayor Neil Reilly made it clear that he didn’t want to pass judgement on anyone involved. “I’ve got no idea what the motivations were of the staff, but I believe that they thought they were acting in the best interest of the community at the time...I’m not going to make any judgments. The whole reason we are here is to look at the council’s financial improvement, and that’s that.”

Mayor Reilly also pointed out that only the NSW State

Government and its agencies can investigate the council. KMC has already sought out options for self-investigation, however these may have been in part superseded when the State Government imposed a Performance Improvement Order in November 2022 to improve Council’s financial position.

“It is possible to conduct a separate independent investigation but this may divert focus and resources from attending to immediacy of PIO obligations,” the Forsyth report states.

KMC CEO Jane Stroud has also referred the matter to ICAC (Independent Commissions Against Corruption) twice in 2022, and she continues to work closely with the Office of Local Government, TCorp and the Audit Office of NSW to address ongoing issues.

The Forsyths report also notes the recommendations KMC has already taken since it received the initial report. Of the 38 recommendations made by Forsyths, 21 have already been actioned, while 11 of the remaining 17 recommendations are in progress.

by Brendon Foye

Kiama residents will decide whether they want to directly elect their mayor in a referendum at the next government election in 2024.

Councillor Stuart Larkins moved a successful motion that could change how Kiama’s elections are conducted. At the moment, councillors select a mayor among themselves every two years.

If the referendum passes, Kiama residents and ratepayers will directly elect a mayor themselves at every local election.

The referendum question will be put to voters at the next local government election scheduled for 14 September 2024, but won’t come into effect until the 2028 election if it passes.

“In the Illawarra and the South Coast, Kiama Council residents will be the only Local Government Area not able to directly elect their mayor in 2024,” said Councillor Larkins at the council meeting on 18 July when the motion passed.

“Wollongong, Shellharbour, Shoalhaven, Eurobodalla and now Bega will be able to directly elect the mayor.”

“Our council has been undertaking a number of important reforms, particularly at an organisational level. I believe it’s important that we have transparent and accountable political leadership from the mayor and councillors at election time and beyond.”

All KMC councillors voted in favour of the motion with the exception of Councillor Mark Croxford and Councillor Matt Brown.

Speaking against the motion, Councilor Croxford said that direct elections could lead to more bipartisan politics in local government, leading to a polarised political landscape.

“Candidates for directly elected mayor may align themselves with political parties, specific interest groups which can introduce party politics and divisive agendas into local government. Polarisation may hinder effective decision making and compromise the council,” Councillor Croxford said.

Speaking to The Bugle,

Kiama Mayor Neil Reilly said he hadn’t made up his mind on whether he supported direct mayoral elections, but did support putting the decision in the hands of voters.

“I think the best thing we can do is allow democracy to take its task and why not? I’m not worried or intimidated by it, I think it’s a good thing. The CEO told me the other day that when you do things a particular way for a long time, it’s always good to have a look at it and make sure, maybe there’s a better way,” said Mayor Reilly.

by Brendon Foye

KIAMA FARMERS’ MARKET

Every Wednesday Surf Beach or Kiama Uniting Church, 2-5pm

SENTRAL’S OPEN MIC

Every Thursday

SENTRAL Youth Cottages, 5-7pm

ROBYN SHARP OPEN GALLERY

First weekend of every month

Cedar Ridge Studio, Foxground, by appointment

THE BERRY BOWLING CLUB MARKETS

Second Saturday of the month, 9-2pm

GERRINGONG ROTARY MARKETS

Third Saturday each month

Town Hall, 8.30-1.30pm

KIAMA SEASIDE MARKETS

Third Sunday each month

Black Beach, 9-3pm

JAMBROO VILLAGE MARKETS

Last Sunday each month

Reid Park, Jamberoo, 9-2pm

NAIDOC Awards Ceremony

Saturday 29 July, 5 pm

Kiama Pavillion

The Music Makers Performance

Saturday 5 August

Kiama Pavilion, 6-10pm

Vietnam Veterans Vigil

Thursday 3 August

Wollongong Memorial Garden, 10am

Kiama Woodcraft Exhibition and Sale

Thursday 3 August – Wednesday 9 August 10 am –3 pm

Old Fire Station, Kiama

Jeans for Genes Trivia Night

Friday 4 August

Gerroa Boat Fishermans Club, 7pm

Shine Women free 8 week course from Friday 4 August

St Pauls Minnamurra Hall, 10-12pm

Gerringong Women’s Hockey Club 75th Luncheon

Saturday 5 August

Club Jamberoo

Friends of Kiama Library

Talk with music writer Jeff Apter

Saturday 5 August, 2 pm

Gerringgong Pics & Flicks 0 The Quiet Girl

Friday, 4 August

Gerringong Town Hall, 7:30 pm

Eat with Homestead of Hope

Each Tuesday

Kiama Scout Hall, 11 am

Meet the Author: Bruce Elder

Wednesday 9 August

The Uniting Church, 7 pm

Art by Kiama Art Society Exhibition 10 August – 16 August 10 am – 3 pm

STICKS AND STONES EXHIBITION

27 July-2 August

Old Fire Station Kiama, 10-3pm

JAMBEROO VILLAGE MARKETS

Sunday 30 July

Reid Park, 9-2pm

VIETNAM VETERANS VIGIL

Thursday 3 August

Wollongong Memorial Garden, 10am

KIAMA WOODCRAFT EXHIBITION AND SALE 3-9 August

Old Fire Station, Kiama, Thurs 1-4pm Fri-Wed 9-4pm

JEANS FOR GENES TRIVIA NIGHT

Friday 4 August

Gerroa Boat Fishermans Club, 7pm

Email Steven@thebuglenewspaper.com.au with your events