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Addressing financial challenges
Addressing financial challenges

17 July 2024, 1:10 AM

It is of concern that some of your correspondents have as much financial expertise as the former Counsellors and staff who created the current financial crisis in KMC. Whilst the provision of retirement living facilities for local residents is an admirable cause, these facilities are increasingly complex to manage and costly to run. And the sponsoring Council and Councillors require considerably more financial expertise to manage than two decades ago. A more fundamental issue is whether Councils are best placed and sufficiently competent to establish and manage these facilities. Furthermore, Kiama is a small municipality that lacks the revenue streams to offer other than basic services. Over the past 2-3 years the Council has been presented with expert financial analysis and recommendations from both the Office of Local Government and its local Finance Advisory Group which they have chosen to reject. These recommendations, if accepted, would require courage and foresight to implement and Councillors’ solidarity to persuade their stakeholders of their necessity. The forthcoming Council elections may have influenced their lack of courage to take the tough decisions that are required to rescue our Municipality from administration. The solution must incorporate sharp cost reduction measures: staff and capital works reductions. This potentially unpopular step must be accompanied by raising revenue without selling assets, as directed by the Office of Local Government. As a last resort a special rate variation can be applied for but this does not resolve the fact that our costs are not covered by our revenue. Once again the Councillors kicked this challenge into the future when the problems might miraculously disappear or become someone else’s problem. That’s the day when the sun will rise in the west! These initiatives appear unpalatable. Clearly some residents oppose the sale of Blue Haven and other assets. Some blame the current CEO. Few seem willing to go back to the perpetrators who set up our Council to fail. Even fewer seem to acknowledge the effort and expertise put in by the CEO and her staff to analyse and diagnose the root causes of our poor financial position and to propose solutions that would enable KMC to recover. Whilst some of the current criticisms are well meaning, they are misguided. It’s time to put the facts before emotional responses to a situation that involves us all. Roger R Collins Gerroa 0408276430

Kiama Council should retain ownership of all or a significant portion Blue Haven Bonaira .
Kiama Council should retain ownership of all or a significant portion Blue Haven Bonaira .

15 June 2024, 7:16 AM

Having closely followed the proposal by the current Kiama Council to sell the Council owned BlueHaven Bonaira retirement complex I feel it pertinent to make the following observations.Kiama Council has for more than 40 years (prior to 2020) conducted a very successful retirementoperation known as Blue Haven Age Care Facility (Nursing Home) and Retirement Village, TerralongStreet, with absolute minimum cost to ratepayers.This establishment was the pride of the Community and earned acclaim far and wide.Kiama’s reputation in caring for it’s community in Community Health and retirement living was suchthat Emeritus Mayor Sandra McCarthy was invited to speak at various seminars both in Australia andoverseas.Over 70% of those who were either living in one of 1 of 5 independent living buildings or wereresidents in the nursing home were Kiama Residents.Blue Haven Terralong was managed by key personal responsible to the Blue Haven Advisory Boardwhich in turn reported to Council. The Board included a number of highly respected local residents.In addition to the above mentioned Council provided a wide range of community services, includingCommunity Transport, Community Nursing, the Community Centre and Community Option advice,all under the same umbrella, making Kiama an ideal place for people to retire.Over the years a Blue Haven Auxiliary (‘Friends of Blue Haven’) worked tirelessly to provide variousitems for the nursing home not available through other funding channels. This volunteer group,through the Annual Blue Haven Fete and other activities raised an amount estimated in excess of$200,00 over the years for this purpose.Independent Living establishments, by virtue of the NSW Government Legislation under which theyoperate and the financial benefit obtained when units are on sold reflecting Real Estate priceincreases, means the establishment operates as a revenue positive business.If Council sells Blue Haven Bonaira it should certainly retain Barroul Houseand its curtilage.15 of 16 speakers at the inquiry to reclassification the land to enable it to be sold spoke against thesale with extremely strong opposition to the sale of Historic Barroul House.The Commonwealth Grant of $1.4m purpose of restoring Barroul House was explicit inthe future use of Barroul House and its curtilage.As taken from a previous letter to Council and the Bugle these included;a. The Proposal will maximise the public access to Barroul House providing a safeentrance and use, and enhance the community engagement of the project andunderstanding of Barroul house.b. The vision for Barroul House precinct is to be arts, cultural and community hub, helpingto overcome social isolation in our ageing population and provide opportunities for childrenand ageing to link together in a community setting.c. Council will liaise with the Local Wodi Wodi Indigenous people to create a sensory andindigenous garden that tells the story of the local indigenous community in a landscapedand engaging way. It would combine plants, landscaping ie pathways, story boards andopportunities for touch, smell, and taste our indigenous food.What a wonderful asset this currently is for Kiama.What a pity it is if this is lost.What does the sale of Blue Haven Bonaira really mean.A NSW Government condition included in the sale of the site to Council was that it was to be usedfor retirement purposes until 2027. This is now only 3 years away!The purchaser of the Blue Haven Bonaira would then be in a position to do as it likes includingbuilding several hundred apartments. Council would have no say.What a windfall!Should this occur, Kiama would be left without a nursing home for its predominately ageingresidents.Family and friends of those requiring nursing home care would have to travel to Gerringong (if a bedbecame available) or much further afield to visit their loved ones.164(?) nursing home beds would be lost in the Illawarra..--------------------------------------------------------------------------------------------------------------------------------------Option 1 Council should retain ownership of Blue Haven Bonaira and appoint staff to manageBLUE HAVEN in its entirety.This is currently not a preferred option of Council.In summary, my proposal.Option 2 Council retain ownership of the Independent Living establishment, includingMatterson Hall, Barroul House and its curtilage and SELL the Nursing Home to a notfor profit registered retirement provider.The issues of access and parking could be accommodated on the Deposited Plan ofsubdivision.Barroul House ‘coffee shop’ could be leased with a committee appointed to overseethe activities proposed above.This would ensure Council own the major part of the site and would control the futureof the site. (This could readily be accommodated by Subdivision of the site.)Option 2 ;1. Ensures Council maintains control of the site into the future.2. Council receives a considerable financial return upfront through the sale of thenursing home and derive a substantial annual income from the remainder.3. Residents in Independent Living Units at Terralong Street and Bonaira are subjectto similar condition, both being in Council ownership. The occupants of Blue HavenBonaira ILU’s would be comforted knowing their future is secure.4. Barroul House and its curtilage meet the purpose of the Government Grant.5. Option 2 allays Council’s concerns regarding the management of a nursing home.6. Preserves a future Nursing Home facility for Kiama residents in their own town.7. Addresses the concerns of the United Services Union re its members employment.8. The Recognition of Local Indigenous is preserved and enhanced.I am committed to obtaining the best outcome for Blue Haven Bonaira and I feel theoption to retain ownership is the preferred option of the wider community.This is evident by the fact that 15 out of 16 prominent respected individuals spokestrongly against the sale at the inquiry to reclassify the land to enable sale.NOEL EDGELLFormer 14 year(1987 – 2000) Director of Engineering , Kiama Municipal Council.Footnote; Council could include the sale of the Nursing Home in current negotiations with thepreferred tenderer.

Is Our Council Structure Fit for Purpose?
Is Our Council Structure Fit for Purpose?

30 May 2024, 11:47 PM

The recent Supreme Court ruling in favour of Councillor Karen Renkema-Lang against Kiama Municipal Council has prompted a pressing question: Is our current council structure fit for purpose? Given the council's decision to engage in costly litigation despite severe financial constraints, one must wonder if the time if well overdue to replace our councillors with an administrator. The case, which centred around an invalid censure motion, has exposed significant procedural flaws and resulted in adding a further $400,000 ( and rising ) in legal costs which have already exceeded $4.7 million this financial year, a burden that falls heavily on the ratepayers.On 27 May 2024, the Supreme Court of NSW, through consent orders, declared the council's resolution to censure Councillor Renkema-Lang invalid due to reasonable apprehension of bias in the independent report by Michael Symons. This report, which had been crucial in the council's decision, was found to have significant redactions that concealed previous involvement of the conduct reviewer in a complaint brought by Renkema-Lang against the Mayor. The court also ordered the council to pay all legal costs, further exacerbating its financial woes.The financial implications of this litigation are staggering. Legal costs have already surpassed $4.7 million this financial year. This comes at a time when the council's financial situation is already precarious, as highlighted by the NSW Auditor General’s reports and the Office of Local Government’s extension of the Performance Improvement Order.One cannot help but question the council's wisdom in increasing the financial burden on the municipality's ratepayers, who are now left to shoulder the costs of what many would consider avoidable litigation.The case has also shed light on significant procedural and transparency issues within the council. Councillor Renkema-Lang’s vindication by the court underscores the lack of transparency in the council’s processes. The redactions in Symons' report, which withheld critical information from the councillors, reflect a troubling disregard for procedural fairness. The fact that these redactions concealed a prior involvement that could have informed the councillors' decisions is particularly concerning.Renkema-Lang’s press release statement highlights her deep disappointment in the council's handling of the matter, pointing out that the council had ample opportunities to reconsider its approach but chose not to. This lack of reconsideration not only led to unnecessary expenditure but also called into question the council’s commitment to fair and transparent governance.At the heart of the matter is the principle of freedom of expression for elected officials. Renkema-Lang's comments during a June 2023 radio interview, which led to the censure motion, were based on publicly available information and her opposition to the reclassification of Bonaira land. Her right to express her opinion on council matters without fear of censure is fundamental to democratic governance.The ruling serves as a reminder that elected officials must be allowed to voice their opinions openly and honestly. It also underscores the need for the council to provide timely, relevant, complete, and accurate information to its councillors, enabling them to make informed decisions.The Kiama Municipal Council’s decision to engage in costly litigation against Councillor Renkema-Lang, raises serious questions about its financial stewardship and commitment to procedural fairness. This case serves as a cautionary tale for other councils about the importance of transparency, fair process, and prudent financial management. It is imperative that Kiama Council reassesses its approach to governance to prevent similar situations in the future and to restore public trust in its decision-making processes.  Lynne Strong

A letter to the editor
A letter to the editor

22 May 2024, 12:37 AM

I would like to comment on your on line item about Kiama Council comes out swinging. I can only assume that the source of this story had to emanate from either the General Manager, the Mayor, or someone very close to them. Clearly, as anyone who has followed the whole saga of the 'sale' of Blue Haven would be aware, it has been the constant position of both the General Manager and the Mayor that Blue Haven in its entirety should be sold. At every vote on this matter taken by Council, the Mayor has voted in support of this - nothing new there. As far as I am aware, the last time Council voted on this matter was in August or September of last year, where it was determined by a 5 - 4 vote that Blue Haven Bonaira would be sold, whilst Blue Haven Terralong would be retained. This was against the advice received by Council from Stuart Brown Chartered Accountants, who recommended selling everything - oh and let's not forget, the beneficiary of that advice was Stuart Brown Advisory, who were to be retained to assist with the sale. Conflict of interest? Not according to Council staff - one wonders if they have any understanding of the meaning of that term! Now in the last issue of the Bugle you published an article about Council's 'green shoots'. In that article it referred a supposed loss of $2.54 million accredited to Blue Haven Terralong. Now we who live here at BH Terralong knew that that could not possibly be true. On checking with a senior Council officer we were advised that the Bugle had made an error, and that the loss was the combined loss of all the components of Blue Haven, including the Nursing Home. I would like your paper's view on this supposed error! Now we come to this most recent article - how can Council now trumpet the sale of Blue Haven Terralong when it hasn't been voted on by Council? What sort of dictatorship is the General Manager and Mayor proposing to foist on this community next? How can they possibly make this 'announcement? I suspect this is all part of the strategy that has been long playing, where the original advice of the GM to Council was to sell everything. As it would appear that the sale process for Bonaira has stalled, lets set our sights on the jewel in the crown, Terralong, and get rid of that! It intrigues me that for more than 40 years Kiama Council has and this community, have enjoyed a mutually beneficial relationship with the entity known as Blue Haven Terralong. Yet an out of towner rides in determined to smash that relationship. Once it is gone, it is gone! But I think Council might have to rethink it's legal budget for next year - I can't see it going down!Allan Holder

Are some in council at war with ratepayers?
Are some in council at war with ratepayers?

20 May 2024, 6:39 AM

By Graham Pike It appears that a small group within that elected and non-elected entity we call collectively Kiama Council is at war with the Municipality’s ratepayers. The group seems to be overly sensitive to and unnecessarily publicly challenging of any criticisms – in the course of what we still regard out here in the Municipality as free speech - of perceived Council shortcomings made by ratepayers directly and through The Bugle newspaper. Why, for example, are they so increasingly antagonistic towards The Bugle, for publishing ratepayers’ letters and expressing its editorial opinions as any newspaper has a right to do and our local newspaper has been doing for 120 years or more? Now we have the spectacle of a councillor, through a motion presented to a meeting of Council, seeking to have Council spend its time and overspent resources on chasing the motivations and opinions of the owner of The Bugle. Is the councillor going to seek the same from Rupert Murdoch or Nine, the owner of the Sydney Morning Herald (SMH), for example? Murdoch’s newspapers and the SMH are, like The Bugle, vehicles for the flow of news, opinions and ideas through the community and despite what anyone in Council or the community may think of them, they are essential for free speech and, indeed, democracy. And all this from a Council which is currently asking us for our help in formulating not a community antagonism strategy but a “Community Engagement Strategy”. Graham PikeJamberoo

Housing the Homeless in Kiama
Housing the Homeless in Kiama

17 May 2024, 9:53 AM

I note many properties advertised in the Kiama and surrounding areas remain untenanted for many weeks, some well over eight weeks. A change in the landlords’ approach can and may resolve this easily with some creative forward financial planning and thinking. I also note the large numbers of people viewing Open Homes, showing the demand for good quality properties at a reasonable rental figure. Could it be the rental being asked is too high for what is being offered? I have seen some poorly presented properties at inflated prices. This is shown by the number of properties being empty for long periods. Note, figures are based on a 52 week period (not a calendar year):If a rental property is rented immediately as advertised for $700 per week, this gives a gross income of $36,400 for 52 weeks.If the property is listed at $700 per week and is empty for six weeks, the loss to a landlord is $4200 per the 12 month period.Amortised over a 12 month period, equals $80.76 per week loss while the property remains vacant.After the six weeks vacancy, the gross income for the 12 months is then $32,200 per annum or $619,23 per week.Suggestions and Possible SolutionsIf the property was rented after six weeks at a lower price at $650 per week, it gives a gross income of $33,800, being better than $32, 000 by having the property empty for six weeks before being rented. This gives a landlord a gain of $1,800 over the 12 month period by simply reducing the rent.And it only gets worse if the vacancy time continues … If the property is vacant for eight weeks, the sums start to get alarming. Property is empty for eight weeks at $700 per week loss. This equals $5,600 per annum loss over the expected income of $36,400. This gives a loss of $106.69 per week or $5,547 over the expected 12 months, giving an income of $30,853 per annum.If the property is rented immediately for $600 per week, this gives an income of $31,200 per annum with no vacant time. This is gain in income of $1,347 per annum rather than stick with the accumulating loss having a vacant property.This should allow for a landlord to negotiate a better rate at renewal time by having a happy long- term tenant or get the better rental return in 12 months’ time. Happy landlords and content tenants makes a happier community

Parking situation CBD
Parking situation CBD

15 May 2024, 2:06 AM

Hi, I am a long term business owner in Kiama (>20yrs), and am very concerned with the lack of interest that the council shows towards improving the parking situation in the CBD. I am located near the Akuna street car park, the last remaining substantial parking facility in town. With the proposed development taking over this space, we will have no parking-specific spaces left in the main CBD of town. There are approximately 60 businesses from the Torys corner to the Red Rooster corner, so even with a low estimate, thats 60 car spaces required for the workers, minimum, without even considering our customers/clients/patients/tourists. Instead of focusing on builiding more housing estates and developments, our council needs to be held accountable and provide us with services to keep our town running. Recently there was a social media post from a fellow long-term business pleading for customers to keep them running. This kind of post is extremely sad, but unfortunately will be repeated by many businesses in town if we dont get more parking facilities. There are options, one significant option would be the construction of a large parking facility behind the "old firestation"/ambulance station. It is reasonably flat, and would provide access to the new park, as well as many of our CBD businesses. I have approached the council in the past, with very little outcome. I think it is time for your wide reach and readership to get this ball rolling. Im not sure how it could be done, but would it be something that you guys would consider shining the spotlight on, before its too late? Thanks for all you do for our great town, keep up the great work!Name Supplied

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