Tackling financial crisis headlines marathon Kiama Council meeting

Residents were left stunned by Kiama Council CEO Jane Stroud’s report into the long-term mismanagement of council finances, but now councillors have agreed to take action.

Kiama councillors voted unanimously to address the municipality’s financial crisis a week on from the release of CEO Jane Stroud’s damning report into the management of council over “decades”.

Ms Stroud, who took up the position halfway through 2021, has highlighted council is in millions of dollars of debt with rate rises among the proposed measures to address the disaster.

The vote headlined the council’s marathon three-and-a-half-hour-long monthly meeting on Tuesday night where councillors mulled over an 855-page agenda.
The report examined the running of the council and its aged care business, Blue Haven, with Ms Stroud flagging a number of concerns including outdated, incomplete or completely lacking policies and procedures.

“Across the board there has been a lack of planning, governance, resourcing and quality systems and procedures to help inform quality council decisions,” her report said.

“The businesses in their current operating states, without immediate and sustained correction are not sustainable.”

Kiama Council CEO Jane Stroud. Picture: Kiama Council

Ms Stroud’s report didn’t attribute blame to any current or former councillors or council staff, although it did note that in the past, reports issued by staff “did not always eventuate in actions”.

“No blame is attributed to any previous officers or elected representatives,” Ms Stroud said in the report.

“Seeking to blame is not considered useful in correcting the situation or propelling the organisation towards a more sustainable business model.”

Council is projected to be $2.7 million in the red over the 2021/22 financial year with rate rises, a change to council facility fees and a review of the services that council provides put forwards as possible solutions to reverse the downward spiral.

The report also pointed to the significant financial perils of the council owned and operated Blue Haven aged care business which is Kiama’s biggest employer with around 180 workers.

The most shocking finding was the blowout of the Blue Haven Bonaira project which ended up costing the council $106 million - $50 million more than it had planned.

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The report cited a number of “building defects” as a result of insufficient planning with residents concerned about “noise, shared spaces and lack of policies to enable harmonious living.”

Blue Haven is also haemorrhaging money through the payment of overtime, agency usage, temporary staffing and the hiring of casuals due to a critical staff shortage with 26 vacancies for the 35 care service staff.

In the meeting Ms Stroud said: “There is no more important item than this. This is what the council needs me to do. This is what the community needs me to do.”

Any other business…

Supporting local music

Kiama performer Penny Hartgerink. Picture: Dylan Arvela

The meeting started on a much lighter note with Kiama singer and guitarist Penny Hartgerink performing her take on Bob Dylan’s iconic 1962 folk hit Blowing in the Wind.

Mayor Neil Rielly said in the chamber he hopes to give local artists the chance to perform before each council meeting adding “it’s an opportunity to help local musicians and artists who have been decimated during Covid and for us to support them.”

Development divide

“I don’t think we’re going to get anything through in the next two-and-a-half years,” Cr Warren Steel exclaimed when discussing a proposed development on 16 Crooked River Rd, halfway between Gerringong and Gerroa.

Cr Jodi Keast had pushed back against building on the site due to wanting to maintain a “green belt” between the two towns, with the Greens councillor arguing it would destroy “rural views” along the coastal route.

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Cr Matt Brown felt the proposed dwelling, shed, swimming pool and wood heater should be given the green light given it met the NSW Department of Planning’s requirements.

Cr Brown, the former Member for Kiama, suggested the development wouldn’t impede on the “green belt” given it wasn’t a ribbon development.

The motion to approve the development was voted down five votes to four leading 80-year-old Cr Steel to gasp, “This is going to be the longest two-and-a-half years of my life.”
Bombo Quarry

As the meeting was drawing to its conclusion, Cr Mark Croxford forwarded a motion regarding the redevelopment of Bombo Quarry.

Cr Croxford proposed the CEO draft a plan of action to redevelop Bombo Quarry for future housing, open spaces, commercial and industrial growth, report to council on making the Bombo Quarry strategy the responsibility of a council director; and write to the Minister for Planning requesting the secondment of a suitably qualified officer and an appropriate level of budget augmentation.

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“I campaigned on this issue,” Cr Croxford, a former Howard government adviser, said.

“There was overwhelming support expressed for this position as was evidenced at the ballot box.

“Also in various candidate forums many of the people who now join us in this council chamber also indicated their support for this position.”

There was a lukewarm response from Cr Croxford’s colleagues until Cr Stuart Larkins agreed to seconded it if an amendment was added regarding the re-establishment of a working committee of key stakeholders and community representatives.

Cr Croxford refused the amendment, leaving the motion, for now, to fall by the wayside.

“Travesty, outrage,” Cr Croxford uttered.