CEO Jane Stroud says it is essential for extra savings to be found in Council’s 2022/3 Draft Budget that is on exhibition until 21 June.

“The Draft shows what it costs to run Kiama Council today, which puts us in a $7.4 million hole after a 2.5 per cent rate rise.

“The challenge that we are having is that the NSW Audit Office has ‘going concern’ issues with the organisation and they will not accept a deficit budget of that size.

“It would be madness on our behalf to continue with it as is.”

Ms Stroud has the challenge of cutting $3 million from expenses of $80 million (after depreciation and amoritisation and borrowing costs are taken out).

The task is made more difficult by every council experiencing significant increases in costs for materials and contracts, given supply chain shortages and delays and a high demand for specialist consultants.

“I am having a series of meetings with the directors and each manager and I will be going through their budget line item by line item and pulling it back wherever I can,” she says.

“It may mean that some planned work programs have to stop or some services will have a reduction in hours of operation or the staffing model that we currently have.

“It won’t be easy.”

Council's CEO Jane Stroud

Mayor Neil Reilly agrees, but knows it has to be done.

“It will be difficult for staff that have put a lot of groundwork into these programs over successive years.

“In some cases we are just going to have to direct some programs to stop.

“Alternatively some of the programs might be extended over a longer period so that things still happen, but maybe a little bit slower.”

These cuts still need to be made even though it is possible that the sale of Akuna Street and a residential block in Irvine St may happen at the same meeting in June.

While the document estimates the net gain from these sales to be $23.4 million (using a mid-point between the Akuna St offers), it cannot be used in projections until the sale is approved.

“We have to wait for Council to resolve to make the sale, rather than preempt the decision,” says Ms Stroud.

“It is also possible that sale money may be used towards loan repayments.”

The sale of the Akuna St holding is expected to be dealt with in June

The information in the exhibition documents only gives a big picture view of the expenses by function:

• Administration
• Public order and safety
• Health
• Community services and education
• Recreation and culture
• Transportation and communication
• Economic affairs
• Governance
• Construction.

The capital works schedule is also listed.

Ratepayers are being encouraged to give their input on what services and programs they value, or important capital works.

“When the budget goes up to Council in June, there will be a list of any community commentary, including from the Finance Advisory Committee and the Blue Haven Advisory Board,” says Ms Stroud.

“The report in the Business Paper will note any savings identified.”

An artist's impression of issues raised during one of the Community Strategic Plan workshops

People also have the opportunity to comment on the Long Term Financial Plan, which presents to scenarios:

• a Base Case that represents Council’s current operating environment and actions being taken under the Strategic Improvement Plan
• a Specific Scenario that takes into account the potential sale of Blue Haven without any further actions to improve the cash or operating position.

Neither scenarios are judged to be operationally sustainable.

It should be noted that in these projections the sale of Blue Haven is included at its insured value, $135 million, as no assessment has been done of its value as a business.

Also on exhibition is a draft of the new 10 year Community Strategic Plan, which is the Municipality’s highest level strategic document.

The Draft brings together the aspirations and values highlighted in community workshops, to create a vision to guide Council’s work.

Information on all the documents, and a survey on the Community Strategic Plan, is available on this Your Say page. Feedback welcome until 21 June.