At tomorrow night's council meeting, councillors will vote on whether to withdraw from the Jamberoo Cycleway project due to increased costs that exceed available funding.

If endorsed, council will formally notify Transport for NSW, return $2.5 million in grant funding, and submit a final claim to recover $170,000 in project expenses.

Council will also explore future grant opportunities under better financial conditions.

Council secured $2.5 million in 2021 to fund the construction of the 7-kilometre Jamberoo Valley Cycleway, which was planned to link Jamberoo with the rest of Kiama’s cycleway network.

Council secured $2.5 million in 2021 to fund the construction of the 7-kilometre Jamberoo Valley Cycleway, which was planned to link Jamberoo with the rest of Kiama’s cycleway network.

Construction was scheduled to begin in the 2023-24 financial year, but council cited staff turnover and a shortage of project management resources as factors contributing to the delays.

According to council the full design documentation was completed in December 2024, and now Council must decide on the next steps, as the project funding remains critical.

The most pressing issue is the updated cost estimate, which now stands at $5.4 million, $2.9 million more than originally planned.

With the funding gap still unresolved and limited options available for securing additional resources, Council faces a choice: proceed and find additional funding or withdraw and return the grant.

What if the funding had been used when first allocated?

Would the project have been completed before costs escalated?

The first stage opened in 2012 with a vision to extend the cycleway to Jamberoo.

At the time, council determined a preferred route and secured funding that included land acquisition.

Some landholders raised concerns about fencing, flooding, and the impact on their operations.

In response, funding was set aside to provide compensation and land acquisition support, similar to the approach taken for the coastal walking track.

As the project progressed, council reconsidered the route and explored an alternative along Swamp Road.

This approach reduced the need for land acquisition and addressed concerns raised by some landholders.

The latest extension brought the cycleway to Browns Road, but it stops short of Jamberoo.

Cyclists and walkers now have to join the busy tourist road, creating a safety risk at Fountaindale Creek Bridge.

Cyclists and walkers now have to join the busy tourist road, creating a major safety risk at Fountaindale Creek Bridge.

Cyclists who use the route say this is a challenging part of the journey.

For Jamberoo, the cycleway is more than just infrastructure, it is an opportunity to boost local business and create a safe, accessible link to the coast.

Regular cyclists and visitors already use the existing sections, but without a complete connection, Jamberoo cannot fully benefit.

Local resident Kim Ryan, who regularly cycles in the area, believes the cycleway would bring a much-needed economic boost to the village.

"You will have group gatherings, they will eat and have coffee, they will bring money into the town. So why would you not extend the cycleway and make it safe for all these people?

It's not only for cyclists. There are people who run, people who walk, people who walk their dogs, children who walk," she said.

A scenic ride through rolling hills, farmland and rainforest. Photo source KBug website

With project costs now exceeding available funding, council is considering whether to withdraw and return the remaining grant money.

Some in the community are questioning whether returning the funding is the right approach.

A recent comment on social media highlighted concerns about how grant money has been managed in the past.

"The cycleway funding was reallocated in 2021 from leftover funds from the Minnamurra River Boardwalk project, which had originally been allocated $4.5 million to $5.4 million, depending on government reports at the time.

The boardwalk project was ultimately abandoned due to cost blowouts. If the cycleway is also cancelled, it would mean that only one of the four projects funded from that reallocation has been completed."

The comment also raises the point that Transport for NSW has verbally agreed to extend the grant deadline to March 2026, suggesting that there may still be time to reassess options.

Given the safety concerns for cyclists and walkers at Fountaindale Creek Bridge, some argue that a staged approach to completing the cycleway could be considered rather than returning the funding.

The idea of a fully connected cycleway clearly has community support.

Some see potential tourism benefits, while others focus on the safety and wellbeing aspects of a dedicated pathway.

Landholder concerns have been an important factor in decision-making, and any future plans would need to consider both community needs and private property impacts.

What if a way forward can be found?

Could a revised design allow the project to continue?

For now, the future of the Jamberoo Cycleway remains uncertain.

But what if the conversation is not over yet?

The Bugle will update you tomorrow after council deliberations.