LOCAL GOVERNMENT

News Roundup

Australia's No. 1 podcast for local government news and views

Decision Time Looms on Kiama’s “Drastic” Budget

As Kiama Municipal Council prepares for its Ordinary Meeting on Tuesday, the community is bracing for a defining moment in the region’s local governance. Faced with a looming $4.5 million deficit and a state-mandated deadline to balance the books by June 2027, the council has released a “266-page bundle” of documents detailing drastic measures that could reshape local life.

The central challenge is a Performance Improvement Order (PIO) from the NSW Government, which requires a balanced budget by the 2026/27 financial year. To achieve this, the council has presented several stark scenarios:

  • The “Base Case” (Service & Staff Cuts): This option focuses on deep operational reductions, including a restructure of the council’s workforce.
  • Service Closures: Media reports have highlighted potential casualties of this plan, such as the closure or sale of youth services, the Community Recycling Centre, and the Visitor Information Centre.
  • The 40% Rate Hike: Within the Long Term Financial Plan (LTFP), a 40% Special Rate Variation (SRV) is identified as the only revenue-raising path that would reach a break-even point without the full extent of service and staffing cuts. A lesser 20% SRV was analysed but deemed insufficient.

A significant financial pressure point is the Blue Haven Terralong facility.

The council is seeking $10 million in debt financing specifically for essential fire safety and compliance upgrades at the site. Internal reports suggest that maintaining the facility over the next decade could require upwards of $51 million to move its condition from “poor” to “fair.”

The lead-up to this meeting has been marked by significant public and media scrutiny:

  • The “Transparency” Debate: Local outlets like The Bugle have questioned the accessibility of the council’s strategy, suggesting that burying critical details in a 266-page supplementary agenda placed a heavy “burden of transparency” on residents.
  • Livestream Interest Surge: There has been a reported surge in community interest in the council’s livestreams, as residents seek to understand the impact of the proposed “austerity-driven path.”
  • Union and Political Resistance: The United Services Union (USU) has labeled the plan an “austerity budget” that risks “throwing the baby out with the bathwater.” Meanwhile, some community groups have criticised the timing of these crucial decisions, noting they were workshopped during holiday periods when some representatives were unable to attend.

If endorsed at the meeting, the suite of documents—including the Draft Budget, Fees and Charges, and Revenue Policy—will be placed on public exhibition for 28 days, starting 27 April 2026. This period will serve as the final opportunity for residents to voice their concerns before the council moves toward final adoption.

Loading comments…