Kiama Council has a buyer for Blue Haven Bonaira but the price and the name of the buyer is secret.

In a confidential session, the offer to send the contract of sale to the buyer was voted on 8-1, with Councillor Kathy Rice voting against it.

"During a confidential session, council ... resolved the following: That council endorsed the chief executive officer to pursue completion of the sale contract for the Blue Haven Bonaira site and associated services, excluding community transport in accordance with the parameters and framework of the sale conditions," CEO Jane Stroud said.

Council may disclose who bought the aged care centre during its July meeting, where the final sale contract will be presented to the council.

Blue Haven Terralong remains in council's hands, and the new PIO calls for a tighter rein on finances to make sure rate revenue is not subsidising its operation.

To stave off administration, the council made the tough decision to sell Blue Haven Bonaira, which was included in the 2023-2024 Council Budget projections, the Council’s Long Term Financial Plan and the Draft Budget for 2024/25.

This will allow the council to focus on the core business of provides local government services.

Council did not include the community transport component in the tender, as NSW Transport will provide its own tenderers for the business.

Council recorded an overall loss of $7.7m for 2022-23, down from $10m the year before. Total current liabilities are $154m (2023).

Taking the sale proceeds, it will now be able to pay the outstanding $15m debt to TCorp, the financial services partner to the NSW public sector.

The Kiama Mayor and councillors.

The new Performance Improvement Order (PIO) from Local Government Minister Ron Hoenig means the council has three years to get its budget into surplus and - apart from the sale of Bonaira - it can’t sell assets to do it.

Council also must update its Finance and Governance Improvement Plan, "to set out the actions council will take over the next two budgets (FY 24/25 and FY 25/26) to break the practice of adopting deficit operating budgets without relying on property sales."

The Council must also provide bi-monthly reports to NSW Office of Local Government on the status of the PIO, and this reporting must start by 24 July, 2024.

The new PIO requires the council to become financially viable by 2026-27.

In a joint statement released last week, Labor councillors Imogen Draisma and Stuart Larkins said the sale of Blue Haven Bonaira was needed for council to meet its financial obligations.

“If the Council goes into administration, we not only lose local control but these hard financial decisions would be made by a distant department with no interest in our highly valued local amenities, our staff or our township,” Councillor Stuart Larkins said.

Blue Haven Bonaira is a 134-bed residential aged care facility, which includes 59 Independent Living Units, Matterson Hall, Barroul House café, a chapel, a gym and a hair salon.