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Costly Bluehaven Mayor could be directly elected Kiama Council is unable to accurately determine how much it cost to construct Blue Haven Bonaira, and may have used restricted funds to complete it. The revelations are contained in an executive summary of a report from auditors Forsyths, which offers a glimpse into the “significant deficiencies in council’s management” of Blue Haven Bonaira which has the primary reason for council’s current financial predicament. The full report was given to KMC in April, but the executive summary has just been released, with some aspects remaining confidential such as payouts to executives in 2018 and 2021 which contributed to Council’s current financial position. The report reveals that in 2016, KMC underestimated the cost of the project by approximately $30 million, expecting the total cost would be around $74 million. The actual cost is estimated at $105.4 million, however, Forsyths states that it did not have enough information to determine the final price tag. “Council did not have data to support total project cost within one source of truth as data was split over multiple work orders. As a result, we were required to utilise underlying accounting data to estimate total final project cost,” the Forsyths report states. KMC took responsibility for project management for Blue Haven Bonaira in February 2020 after it was opened to the public. However the quality of project management was “signifi-
cantly reduced” once KMC took over, as there were still defects yet to be rectified and project variations to be finalised. At this stage, total project spend was approximately $98 million. The Forsyths report also reveals that $3.4 million of developer contribution funds that were allocated for upgrades to Council Chambers was spent on Blue Haven Bonaira’s construction. “From our understanding of EPA [Environmental Planning and Assessment] regulation, the use of these funds for Blue Haven is not allowed and therefore these funds need to be returned to the developer contribution external restriction,” the report states. Speaking to The Bugle, Kiama Mayor Neil Reilly made it clear that he didn’t want to pass judgement on anyone involved. “I’ve got no idea what the motivations were of the staff, but I believe that they thought they were acting in the best interest of the community at the time...I’m not going to make any judgments. The whole reason we are here is to look at the council’s financial improvement, and that’s that.” Mayor Reilly also pointed out that only the NSW State
Kiama residents will decide whether they want to directly elect their mayor in a referendum at the next government election in 2024. Councillor Stuart Larkins moved a successful motion that could change how KiaGovernment and its agencies ma’s elections are conductcan investigate the council. ed. At the moment, councilKMC has already sought out lors select a mayor among options for self-investigation, themselves every two years. however these may have If the referendum passes, been in part superseded Kiama residents and ratewhen the State Government payers will directly elect a imposed a Performance mayor themselves at every Improvement Order in local election. November 2022 to improve The referendum quesCouncil’s financial position. tion will be put to voters at “It is possible to conduct a the next local government separate independent inves- election scheduled for 14 tigation but this may divert September 2024, but won’t focus and resources from come into effect until the attending to immediacy of 2028 election if it passes. PIO obligations,” the Forsyth “In the Illawarra and the report states. South Coast, Kiama CounKMC CEO Jane Stroud cil residents will be the only has also referred the matter Local Government Area not to ICAC (Independent able to directly elect their Commissions Against mayor in 2024,” said CounCorruption) twice in 2022, cillor Larkins at the council and she continues to work meeting on 18 July when closely with the Office of the motion passed. Local Government, TCorp “Wollongong, Shellharand the Audit Office of NSW bour, Shoalhaven, Euroto address ongoing issues. bodalla and now Bega will The Forsyths report also notes the recommendations KMC has already taken since it received the initial report. Of the 38 recommendations made by Forsyths, 21 have already been actioned, while 11 of the remaining 17 recommendations are in progress.
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be able to directly elect the mayor.” “Our council has been undertaking a number of important reforms, particularly at an organisational level. I believe it’s important that we have transparent and accountable political leadership from the mayor and councillors at election time and beyond.” All KMC councillors voted in favour of the motion with the exception of Councillor Mark Croxford and Councillor Matt Brown. Speaking against the motion, Councilor Croxford said that direct elections could lead to more bipartisan politics in local government, leading to a polarised political landscape. “Candidates for directly elected mayor may align themselves with political parties, specific interest groups which can introduce party politics and divisive agendas into local government. Polarisation may hinder effective decision making and compromise the council,” Councillor Croxford said. Speaking to The Bugle,
Kiama Mayor Neil Reilly said he hadn’t made up his mind on whether he supported direct mayoral elections, but did support putting the decision in the hands of voters. “I think the best thing we can do is allow democracy to take its task and why not? I’m not worried or intimidated by it, I think it’s a good thing. The CEO told me the other day that when you do things a particular way for a long time, it’s always good to have a look at it and make sure, maybe there’s a better way,” said Mayor Reilly. by Brendon Foye
by Brendon Foye
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