Council’s temporary advisor, Peter Tegart, has already begun work, starting with going through volumes of background information on its financial situation. His appointment came as part of the Performance Improvement Order (PIO) issued by the Minister for Local Government on 8 November [Kiama Council issued with Performance Orders].

In addition to a ninety minute call with the CEO Jane Stroud, Mr Tegart briefly introduced himself via video to the councillors during the November Meeting (during the confidential session).

A spokesperson for the Minister for Local Government explains his background this way, “Peter Tegart has been appointed as financial advisor to the Council.

“Mr Tegart is a Fellow CPA with 20 years’ experience as a CEO in local government and the Commonwealth public service, including almost seven years as CEO of Queanbeyan-Palerang Regional Council.

“Mr Tegart will work with the Council to improve its financial performance and will remain as financial advisor only as long as is necessary.

“The Office of Local Government will continue to work closely with Kiama Municipal Council during this process.”

CEO Jane Stroud says, “I am looking forward to working with him on the items in the Schedule [of the PIO].”

At the November Meeting, Councillor Mark Croxford had an amendment passed that, in addition to noting the PIO, Council would refer the PIO to the Independent Commissioner Against Corruption as an addendum to its self-reporting to ICAC.

This was so that there was no doubt ICAC was aware of the Minister’s concerns on the same matters (which have not been made public by Council).

“We owe it to residents, ratepayers and business owners to do everything possible to get to the bottom of why we find ourselves in this situation,” he said.

“It is a matter for ICAC to determine whether they reject or accept a referral.

“We should provide them with as much information as possible.”

The November Meeting also revealed that significant year end adjustments have taken Council’s initial operating deficit of $4.5 million for year ended June 2022 to a surplus of $1.2 million, as shown in the 2012/2 Annual Report.

Blue Haven’s Interim Chief Operating Officer Joe Gaudiosi, whose role has recently expanded to overseeing Council’s finances, warns against seeing this as an indication a corner has been turned, while noting it better aligns with the $1 million surplus expected in the budget.

“Council is still in a precarious cashflow situation,” he says.

“The budget result is clearly important but the reality is the cashflows also include upgrading costs that aren’t reflected in these figures.

“We are currently $3 million down in our unrestricted reserves and we are effectively borrowing against restricted internal reserves for general operational expenditure.

“It is all out in the open and there is a plan to do it for a short period of time until divestment income comes in.”

Mr Gaudiosi is happy the figures for the September quarter are in the black ($312,000) but says it is too early in the year to read too much into the $1.8 million positive variance against the budget.

In confidential session at the November Meeting, Council declined a request from the purchaser of its Akuna St holding, Level 33, to vary the terms of the settlement. Settlement is due on 2 December.