Kiama Council is set to consider significant job losses and service cuts as it works to balance its budget under a state government Performance Improvement Order (PIO). The council must achieve a balanced budget by the next financial year, requiring at least $4.5 million in savings. The order prohibits selling assets or raising rates to meet the target.
At an extraordinary meeting on Tuesday night, councillors will review a report from CEO Jane Stroud outlining potential cuts. These include axing approximately 30 jobs, discontinuing Youth, Cultural and Community Services, and reducing operating hours at libraries and the leisure centre. The report warns that without changes, the council will continue to spend more than it earns.
The council also faces a $10 million cost for fire safety upgrades at Blue Haven Terralong, an independent living facility. A total of $51 million is needed in coming years to bring the facility to an average condition, but only fire safety repairs are being addressed now. The report recommends councillors consider selling Terralong, despite a previous council vote in February 2023 to keep it in public hands.
Rates are capped at 3.2% for the coming financial year, while costs for employees, insurance, and utilities are rising faster. The council's population growth has remained low, limiting the rate base. The report notes that the 2026-27 budget is the final year of the PIO timeframe, and tough decisions are needed to close the remaining $4.5 million deficit after reducing a $16 million loss in 2024.
If the council becomes more financially stable, some services could be restored in the future. The report emphasizes that long-term revenue must increase and short-term costs must be controlled to address the structural deficit.
