Late in May Local Government Minister Ron Hoenig issued a variation to the Performance Improvement Order (PIO) that currently applies to Kiama Municipal Council. It effectively binds the current and future Council to a strict set of actions ‘required to improve performance’ over the next three financial years to FY 2026/27 with the aim of operating a budget in surplus that does not rely on property sales.

The Minister said that Council ‘is moving too slowly’ towards financial sustainability and given this, Council will be required to report to the Office of Local Government bi-monthly to make sure they remain on the track to reducing expenditure and increasing revenue.

The response from the Council to the revised PIO was understandably muted from Council, and the community should take note. Whilst the controversial sale of Blue Haven Bonaira looks to be finalised over the coming weeks with purchase by aged care providers Hall & Prior, it is quite clear that Bonaira will not be the last in terms of significant changes to Council assets and services.

Council’s draft Long Term Financial Plan to FY 2033/34 points towards eight other parcels of land that Council will be looking to dispose of to shore up the finances. It is possible that Blue Haven will continue to feature heavily, with the PIO requiring Council to definitively determine whether general rate revenue is subsiding Blue Haven’s Terralong operations – the same issue that plagued Bonaira and led to its forthcoming sale. 

In addition, there’ll be a requirement that Council set aside and establish a capital renewal reserve for Terralong with annual transfers to the reserve of $2 million.

The community should not be surprised if Havilah Place at the top of Terralong Street is subdivided and subsequently sold off, perhaps sooner rather than later. 

What has not been outwardly divulged in statements from Council but is found within the detail of the 40 pages of the Long-Term Financial Plan are references to how additional revenues may be secured, and how costs will be reduced. 

And it all makes complete sense as to where Council will find the dollars.

Cutting “non-essential services”. 

Special rates variations.

Sale of Council assets like the Works and Waste Depots.

The Bugle’s View is that Council should be up front with these discussions.

Where is the grandstanding and transparency about what this means for us, as ratepayers? 

What exactly are the ‘non-essential’ services that Council is looking to cut. 



We all know about the paid parking discussions and what the community already thinks – but is that another decision that will be forced upon us.

We are currently in a cost-of-living crisis and cuts to services and increases to rates is not welcome news. Particularly when Council’s legal bill is now at $4.7m for this financial year, and likely to reach the $5m mark if there are further significant costs associated with a yet another code of conduct investigation between bickering Councillors.  

Will Councillors and Council be honest in the upcoming local government election about what they stand for? What services and Council assets are off limits? How much could this special rate variation be?

Let’s wait and see. But there is one thing the community can rely on, and that is The Bugle providing a clear and transparent View and holding this and the future Council to account.