Kiama Council’s estimated legal bill to March 2024 has blown out to a staggering $4,477,976 when compared to the $222,024 it spent in legal fees, according to the 2018-2019 annual report.

Last financial year, its legal fees were $1.7m. The year before that, it was $484,916.

Mayor Neil Reilly said the estimated legal bill alarmed him as it exceeded budget limitations.

"But we are adequately covered. In the grand scheme of things, $4.7m is not going to cripple council,” he told the Illawarra Mercury.

“We will make allowances to [pay] that, but it's not going to impact any other services that we provide,” he said.

The Mayor did not expand on how the council would pay the estimated legal bill.

The Supreme Court has officially ruled that Kiama Council’s censure of Councillor Karen Renkema-Lang was invalid.

As reported in Kiama Council's May Council meeting, legal costs have already exceeded $400,000, and the total expenditure will be substantially more.

Full details of costs will be produced in the July 2024 Council Meeting.

In a statement, Councillor Karen Renkema-Lang said Council had ample opportunity to reconsider the matter.

“It is incomprehensible that so much time and scarce council funds have been spent on the censure matter given Council’s financial position and the importance of elected Councillors being able to express their opinion on Council issues,” she said.

A large chunk of the cost is the $3.2m litigation to defend in the Federal Court litigation from developer Nicolas Daoud over Akuna Street development plans. The matter is before the court.

According to council business papers, it spent the following on legal matters:

$3,285,222 Federal Court

$536,765 DA appeals, Mediation conferences and the NSW Land & Environment Court

$176,945 NSW Civil & Administrative Tribunal

$149,180 Legal/Probity Advice 

$76,061 Property Development, including road closures, caveats, etc

$43,795 Anti-Discrimination

Below is the case-by-case legal fee estimates, according to the council business papers:

$90,000, Probity Advice, 6/07/2022

$135,600, Michael Joseph v KMC, 1/09/2022

$2.5M, KMC v Daoud, Federal Court, 6/10/2022

$40,000, Enzo Developments vs KMC, 7/12/2022

$93,000, Michael Joseph v KMC & Spencers, Not dated

$140,711, Vortex Developments et al, v KMC, Refusal of DA, Not dated

$128,786, Grant v KMC, Unsafe Rides, 27/10/2021

$43,725, John Giles v KMC, Unlawful Discrimination, Federal Court, 21/04/2022

$95,000, Fountaindale v KMC, Refusal of DA, 1/05/2023

$15,000, D&L Sharp v KMC, Refusal of DA, 23/08/2023

$95,350, Blue Haven Bonaira Probity Advice, 23/08/2023

$24,857, Michael Joseph v KMC Appeal Fee estimate, 14/08/2023

$45,908, KMC v Josef Fischer, Swamp Road Cycleway, Supreme Court, 12/10/2023

$20,000, Cole & Hennessy v KMC, Refusal of DA, 17/01/2024

$29,000, Forte Kiama Heights Development v KMC, Refusal of DA, 12/01/2024

$28,000, Harwood v KMC, Refusal of DA, 13/03/2024

$32,000, Enzo Developments vs KMC, 12/04/2024

$28,000, EPLANNING v KMC, Deemed Refusal of DA, 4/03/2024

$39,000, DA House v KMC Refusal of DA, 15/04/2024,

$444,511.99, Karen Renkema-Lang v KMC, Revocation of Censure, Supreme Court, 22/02/2024

$5200, Code of Conduct Complaint (Councillor), 30/04/2024

Section 8A of the Local Government Act sets out the guiding principles for local councils. They include conducting its functions to provide the best value for residents.