The Kiama Council’s legal costs stand at $4,501,918 as of 30 June 2024.

Council executive staff has consistently exhorted all parties, “to identify the issues in dispute, develop options, consider alternatives and endeavour to reach agreement.”

Almost 60 per cent or 13 of the 22 current legal matters involve the NSW Land and Environment Court.

In a pointed reference to councillors, the business paper states that,” compliance with the Code of Conduct would also mitigate risks associated with conduct matters,” which now stands at $23,474.

The Illawarra Mercury reports that Kiama Mayor Neil Reilly called the use of code of conduct complaints as "the weapon of a coward".

Council is allegedly investigating a fourth code of conduction violation.

"I don't think a code of conduct is an efficient weapon,” Mayor Reilly said. “Certainly not a weapon of choice, and if someone chooses to use the code of conduct as a weapon to humiliate people, well it's a poor choice.”

Mayor Reilly previously said the 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.”

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

Credit: Victoria Commonwealth University

So far the council is up for $4,501,918.

The breakdown is as follows:

• $3,547,719, Federal Court matters
• $639,324, NSW Land & Environment Court
• $182,914 General legal and probity advice
• $55,508, Supreme Court matters
• $47,176, Anti-discrimination matters
• $23,474, Councillor Code of Conduct related matters
• $5,803, NSW Civil & Administrative Tribunal matters



The lion’s share of the bill was the $3.5m litigation in the Federal Court involving developer Nicolas Daoud over the Akuna Street development plans. The matter is before the court.

There were plans to place an Aldi supermarket and an apartment block at the site but the council's sale to Mr Daoud fell through in 2018 when conditions weren't met.

The site was sold to developer Level 33 in late 2022 for $28 million.

In May this year, the Supreme Court overturned the Kiama council's decision to censure councillor Karen Renkema-Lang for speaking to the media.

The court found the censure motion was invalid. Council had to pay her legal fees on top of its own costs of more than $400,000.

According to the 2018-2019 annual report, the council spent $222,024 in legal fees.

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.