Kiama Council aims to achieve financial sustainability by the 2026/27 fiscal year, and everything is on the table according to its Long Term Financial Plan 2024-2025 to 2033-2034.

First is to return the council to a surplus, fund new assets and hit financial targets.

While the recent Performance Improvement Orders bans the sale of Blue Haven Terralong as long as it is in effect, there will be an investigation in to true operational cost of the aged care centre and whether rate revenue is subsidising it.

Council will also make public a building report on Blue Haven (Terralong) and the vacant Havilah Place property and decide whether it will subdivide and sell Havilah Place.

Generate revenue

The council will explore paid parking to create revenue and pursue federal and state government grants.

In April 2022, Councillor Karen Renkema-Lang conducted a survey of 144 people in the Kiama and Gerringong town centres. It found even if residents and businesses were given permits, 59 people voted ‘yes’, 78 voted ‘no’ and 7 were ‘undecided’.

Last month The Bugle conducted a vox pop of business owners in Terralong Street and most wanted parking policed rather than permits.

The Long Term Financial Plan has three scenarios which is contingent on a high number of variables.

The three scenarios

Scenario 1- is what the council anticipates achieving and is its preferred option. It meets the minimum financial goals.

Scenario 2 - is the implementation of a Special Rates Variation (SRV) of 10 percent in 2026/27 on top of the normal rate peg. This is not council’s preferred option, and the focus is on achieving efficiencies and service reviews before considering a SRV.

Even so, as council states, some adjustment of rate income will need to be made to account for inflation. In 2024-2025 the rate peg was 4.5 per cent but the Consumer Price Index (CPI) rose by 5.1 per cent.

Scenario 3 - is the ‘do nothing’ strategy with no budget savings at all.

Below is the council’s projected calculations of surpluses and deficits in brackets () before capital grants and contributions.

Note in scenario 3, from 2027-2028 and on, the council posts a raft of deficits, which means even with grants, it is barely solvent. Scenario 1 provides short term pain for long term gain.

Council’s three projected scenarios year-on-year

The council recognises that the scenarios are hypothetical but necessary as a financial compass.



The council has picked a number of sites which, through sale, development and leasing may provide extra revenue. They are the:

• Council Administration Centre, 11 Manning Street, Kiama
• Old Retirement Village, Havilah Place, Kiama
• Council Works Depot, Belvedere Street, Kiama
• Council Waste Depot, Riverside Drive, Minnamurra
• Blue Haven Terralong precinct, Kiama
• Spring Creek precinct, Kiama

The future of these properties will be determined by the newly elected council.

The latest figures show the Australian economy grew by just 0.1 per cent in the March quarter and recessionary headwinds are blowing. That will also make it difficult to hit targets.