Cathy Law
02 March 2023, 5:17 AM
While the decision not to include the Terralong St ILUs in the sale of Blue Haven was the focus of attention for many, a number of other pivotal decisions were made unanimously at Council's Extraordinary Meeting on Tuesday - to help Council to meet its Performance Improvement Order (PIO) from the Office of Local Government and restore its financial viability.
“Those decisions weren’t taken lightly or off the cuff,” says Mayor Neil Reilly.
“Everything was questioned and everything was debated. However once that debate was over, and minor and major amendments made, all were unanimous decisions of Council.
“I commend the Councillors and Council staff for their vital contributions to the Meeting. I am pleased that we reached a consensus, with some give-and-take from all sides. Tough decisions were made, the outcomes of which have given us a solid path forward towards a sustainable future for our Council and our Municipality.
“The community knows we have wrestled with the issues around our finances and Blue Haven since we were sworn into office back in January 2022. Debates have swung back and forth many times because of the significance of these decisions.
“I’ve been speaking all year about the need for compromise and for us to work as a team. This all came together and I’m proud of what we achieved.”
The Council Meeting at The Pavillion
The decisions, most of which reinforce the need for further asset sales, included:
CEO Jane Stroud says the documents made public for the Meeting show plainly that because of a structural deficit for the initial two to three year period, in order to remain a going concern, “We must divest where we can to be able to pay our bills when and where they fall due.
“This is about restoring those to a healthy balance so that this and future councils don’t find themselves in this cycle of deficits.”
CEO Jane Stroud and Mayor Neil Reilly at the Extraordinary Meeting
She’s pleased she has been authorised to proceed with the sale of Blue Haven Bonaira, and that now Blue Haven Terralong is not to be included there is clarity to consider planning proposals for separating the land around the Havilah site (former nursing home) and the community garden.
“We can progress with those and consider what the time frame of the process is and what opportunities are presented after that fact,” says Ms Stroud.
The Meeting also called for a dilapidation report on the 43 year old Terralong St site to assess what further investment will be needed.
“There has never been a strategic asset management plan for those pieces of infrastructure, and they need to be brought up to compliance,” says Ms Stroud, describing the report as a significant body of work to be undertaken and noting there are no reserves held for their replacement.
Ms Stroud has already been in touch with TCorp.
“Those formal negotiations to refinance are commencing as a matter of urgency, and while TCorp are very positive about the early repayment they are also very aware of the remaining $15 million owed and the challenges around seeking refinancing with our current balance sheet having incomplete financial statements.”
Asked by Councillor Warren Steel to explain how the situation has got to this, she ended with, “There is no question that we are in this predicament through a series of complex decisions that have been made in the past that have all caught up with us today.”