Note: The content of this message solely reflects the independent comments & views of Clr Karen Renkema-Lang and is not a communication or product by or of Kiama Municipal Council.

Dear residents, ratepayers & business owners in the Kiama LGA,

Over 100 people attended a very important Council meeting at the Pavilion on Tuesday 28 February. Many more watched the livestream. All of the agenda items tabled pointed to a new ‘business model’ for Kiama Council. During the meeting it was very evident that the community of the Kiama LGA want to have a say in the future of our Council, and so they should.

What should a new ‘business model’ for Kiama Council look like? Should Kiama Council be reduced to a leaner meaner organisation that just provides a platform for tourism and the basic Council services - pot-holes and garbage collection? Should we sell precious community assets to the highest bidder? The Kiama Leisure Centre? Blue Haven Terralong Street Retirement Village? The Blowhole Point cabins? Kendalls Beach holiday park? The Old Fire Station? Couldn’t most of these be retained and revitalised as profit-making enterprises for the long-term benefit of the local Community?

Council has a substantial property portfolio that is identified in the draft property plan tabled at the Council meeting on 28 February. These are all Council owned or managed assets. They are a mix of commercial, industrial, residential, recreational, crown land and infrastructure parcels of land and buildings. The working draft plan clearly states that “Council seeks to potentially leverage its property and related assets to facilitate private development investments”. Which of these should we absolutely fight to keep to provide the best outcomes for the people who call Kiama home?

I would also like to point out that as I understand the Local Government Act, the sale of Blue Haven Bonaira cannot proceed to finalisation until completion of the public exhibition and public meeting, and receipt and consideration of submissions. It is also important to note that the property and liquidity plan were adopted as working drafts for future discussion and workshop. They were not approved or accepted at the 28 February meeting.

Let's talk about money!

What do we need to prove to the State Government (and importantly to you in the community) that we are financially viable?

Firstly, we need an immediate cash injection of around $15 million (or more) to be able to pay bills as they are due over the next two years. It is clear from the financial figures presented at the meeting that the sale of Blue Haven (with or without Terralong Street) will NOT provide this amount of money in the time it is needed. The good news is that successful negotiation of $15m from the balance of the loan used to fund Blue Haven Bonaira build will, and this is being pursued.

Secondly, the financial figures presented made it clear that even without selling Blue Haven Terralong Street, Council will have a relatively healthy cash balance ($14.3m) to manage day to day operations and pay bills by June 2024 – assuming the sale of Bonaira goes ahead. The draft property plan makes it perfectly clear that there are options (other than selling Terralong Street) to provide another $10 to $15 million cash injection if needed. The impacts of renegotiating the loan and keeping, and improving revenue from Terralong retirement village may well result in this not being needed. But we don’t know as we haven’t been presented with this financial data.

Thirdly, before Council makes a decision to sell valuable community assets, we need to understand the lost opportunities and the extent of lost revenue from doing so. And importantly we need to have an alternative strategy that demonstrates a better financial, social and cultural proposition than what we are losing. We know from past financial reports that profits from the independent living units at Terralong Street have financed successive expansion of Blue Haven in 5 discrete stages, subsidised the aged care facility and funded other community infrastructure. Further, the financial figures presented at the June 2022 meeting showed that Council operations (excluding Blue Haven) are running at a loss. We have not yet been presented with financial data that details alternative revenue

sources to correct this structural deficit.

Finally, Council needs a stable and fully functioning financial management system along with a stable and qualified financial management team capable of producing accurate, timely and relevant financial statements. It needs these things in place to restore confidence that Council can manage the proceeds from any sale of assets responsibly and appropriately to restore Council as a ‘going concern’. Council must be able to demonstrate that these things are in place before any further decisions are made about selling valuable community assets.

I will continue to push for all of the above to be made explicit and to be considered in future decisions of Council.

And remember I’m always interested to hear your views. Feel free to call or email me, or drop by Short Black Cafe in Kiama for one of my regular coffee & chat sessions. The next one is Weds April 12 from 9:30am. Other dates are on my website safekiama.org/your-thoughts.

As you know I am a passionate advocate for democracy and your voice is part of that.

Yours Sincerely,

Clr Karen Renkema-Lang