The Business Papers for Council’s Extraordinary Meeting next week culminate in a recommendation that it sell Blue Haven in its entirety, rather than just the Bonaira element.

The sale of the Terralong St ILUs was strongly opposed by residents when it was first raised, and opposition is likely to continue.

To counter this, Council has released previously confidential information and is holding the Meeting in a public session.

“I want people to read the facts for themselves,” says CEO Jane Stroud.

An Open Letter published in The Bugle (and in full below) gives the reasoning for course of action, including: “The business case, which was developed after a thorough review of Blue Haven, makes it clear that this is what it will take to restore not only our financial sustainability but to allow Council to refocus on the core business of local government.”

Residents in the Council lobby protesting the possible sale of their ILUs last year

Speaking before the release of the Business Papers, Mayor Neil Reilly said, “Next Tuesday we are going to put to councillors an opportunity to change the situation for the better.

“We have been caught in the gloom of financial uncertainty for 12 months, and now with the support of staff, consultants and councillors, we believe that we have a sustainable way forward.

“We have reached a point where we know what has gone wrong and we know what is going to fix it – that is going to be systemic change in the way we approach our assets, our businesses, our debt and our community.”

Asked what would happen if the course recommended wasn’t supported, he says, “The situation will be dire.”

People wishing to attend the meeting are being asked to register, so that the venue can be moved to The Pavilion if necessary, given the limited capacity in the Council Chamber.

The Business Papers are now online here. Further posts will follow once the information is absorbed.

This is the full text of the Open Letter:

Dear community members of the Kiama Municipality,

During the past 12 months we’ve been openly sharing information about significant financial issues facing Kiama Council.

This situation, which involves our aged care business, Blue Haven, has been confirmed by the NSW Auditor General and the issuing of a Performance Improvement Order by the NSW Minister for Local Government.

Council is holding an extraordinary meeting on Tuesday 28 February to consider a number of critical matters to help re-establish the path to financial sustainability and meet the requirements of the Performance Improvement Order.

The extraordinary meeting agenda includes:

• Blue Haven business case
• Liquidity management plan
• Cash flow plan
• TCorp repayment of debt
• Distribution of proceeds of the Akuna Street sale
• Property divestment plan
• Service review scope for commercial services

 Once again, Council will consider stepping away fully from our aged care business.

Council has already formally resolved to divest itself of Blue Haven Bonaira and associated assets. An independent business case has now recommended that Council also considers the divestment of the Blue Haven Terralong site and its assets.

The business case, which was developed after a thorough review of Blue Haven, makes it clear that this is what it will take to restore not only our financial sustainability but to allow Council to refocus on the core business of local government.

Council wants to assure you that, no matter what is decided, Blue Haven will continue as an aged care provider and will remain a loved and valued asset in the community.

No one will lose their home, or their place or care in our residential aged care facility. These will simply be operated under new ownership.

We know many in our community feel a strong emotional connection to Blue Haven and the business case recommendation to divest it may be hard to hear.

It is important to understand the facts. This is why we’ve shared so much information about the operation of Council as a business, the impact the construction of Blue Haven Bonaira and the ongoing costs of running a complex aged care business has had on our financial position.

We urge you to read the reports (in the meeting agenda) along with the information and the previous reports we’ve put out over the past 12 months via our website. Truly consider what is best for Kiama Council now and for many years to come.

We also invite you all to attend the extraordinary council meeting on 28 February – either in person (registration is essential) or via our livestream. Our livestream recording will also be available via our website after the meeting.

The extraordinary meeting is when and where your elected representatives will decide how we move forward.

Whatever is decided, this process has enabled us to examine Council’s operations and start to think about who we are, without running a large and complex aged care business. We’ll be consulting with the community extensively over the next 12-24 months on this.

We will want to hear from you in the near future about what you want Kiama Municipal Council to be. Which community services, projects, events, infrastructure and facilities matter the most to you, what service levels we need and how we focus our resources where they’re most needed.

We look forward to you sharing this journey with us.

From the team at Kiama Municipal Council