While it’s early days, a newly elected council combined with prudent financial management, will see Kiama Council’s budget go into the black by 2026-27, without asset sales or capital grants, as per the NSW Government Performance Improvement Order (PIO).

Council will record an operating deficit of $5.4m in 2024-25, excluding grants and assets sales. This is forecast to improve to an operating deficit of $2.7m in 2025-26, before returning an operating surplus of $700k in 2026-27.

This is a major feat when in 2019-20 the budget deficit was $8.1m – a 35 percent improvement to the bottom line.

There were swings and roundabouts for council finances in May, according to the July 16 business papers. Revenue is down against budget by $5.5m (5.9 percent) and expenditure is over budget by $2.6m (3 per cent) but these figures are highly variable month-to-month.

Council’s cash balance increased during June from $46.6m to $48.1m.

General operations contributed $408k in revenue over the budget.

Public fees and rents for the Kiama Showground and Blowhole Points Reserve added $222k.

The Leisure Centre’s budget went into the red by $279k but cooler weather (seasonality) and patrons going on holidays, may explain part of that.

Due to high material and service outlays, the council commissioned and reviewed a report on its services as part of the PIO. One of the areas council focused on was the Leisure Centre.

Key challenges in the report for the centre were:

• The need for a clear strategic long-term direction and market focus
• Internal expertise and skills in aquatic and leisure management
• The age and deteriorating condition of the leisure centre assets and facilities
• Resourcing the extensive range of services currently provided
• Workplace culture, operations management and structure

“The report shows it’s time for big decisions,” CEO Jane Stroud said. “The Centre is showing its age, our operations need some changes, and overall, a more modern approach to managing the facility is required.”

Mayor Neil Reilly and CEO Jane Stroud 

The report offered three options for the Leisure Centre's future:

• Maintain the status quo
• Implement upgrades
• Pursue redevelopment

Council received 725 submissions from a customer survey last year, which showed the centre was highly valued by the community.

“Now that we also have this report,” CEO Stroud said, “we need to go back to those customers, and to the wider community, to further discuss the future of the Centre.”