Push to improve DA times p3
Hindmarsh Park design finalised p3
Yes to Loves Bay terraces p7
Kiama Show Society 175th
Ways to help others at Xmas p9
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19 NOV 2022
Performance Order issued: what now? The Minister for Local Government, Wendy Tuckerman, issued a Performance Improvement Order (PIO) on Kiama Council on 8 November. The issuing of a PIO is usually the first step on the road to administration, but hopes are that the work done so far to report and improve the situation will avoid this. In her letter issuing the Order, and appointing a temporary advisor, Minister Tuckerman’ said, “In deciding to issue a PIO, I have had particular regard to Council’s use of restricted funds for purposes other than the restricted purpose, evidence suggesting Council may not be able to pay its debts as they fall due, and the deterioration of Council’s financial position. “I recognise that Council has undertaken work to address these issues. I note Council has entered into a contract for the sale of land in Akuna Street and that Council has resolved to sell part of the Blue Haven Aged Care facility. However, I am not satisfied that these actions will fully address the fundamental issues of concern.” Council is now focused on the action required to improve performance by June next year. Its temporary advisor during that time, Peter Tegart, has already begun going through volumes of
background information on its financial situation. In addition to a ninety minute call with the CEO Jane Stroud, he briefly introduced himself via video to the councillors during the November Meeting (in confidential). A spokesperson for the Minister for Local Government says, “Peter Tegart has been appointed as financial advisor to the Council. “Mr Tegart is a Fellow CPA with 20 years’ experience as a CEO in local government and the Commonwealth public service, including almost seven years as CEO of Queanbeyan-Palerang Regional Council. “Mr Tegart will work with the Council to improve its financial performance and will remain as financial advisor only as long as is necessary. “The Office of Local Government will continue to work closely with Kiama Municipal Council during this process.” CEO Jane Stroud says, “I am looking forward to working with him on the items in the Schedule.” On announcing the imposition of the PIO, Ms Stroud said, “I respect the Minister’s decision. Local Government is an instrument of State, and our focus must relentlessly be on only core local government services and remaining financial sustainable. “Hundreds of staff and our ratepayers depend on our ability to pay our bills, week
in, week out. I’ve worked tirelessly to unearth and address these issues since starting in the role, and that effort won’t stop. “We must improve the business, address the items in the Performance Improvement Order and retain our local government for the people of the Kiama local government authority”. At the November Meeting, Councillor Mark Croxford had an amendment passed that, in addition to noting the PIO, Council would refer the PIO to the Independent Commissioner Against Corruption as an addendum to its self-reporting to ICAC. This was so that there was no doubt ICAC was aware of the Minister’s concerns on the same matters (which have not been made public by Council). “We owe it to residents, ratepayers and business owners to do everything possible to get to the bottom of why we find ourselves in this situation,” he said. “It is a matter for ICAC to determine whether they reject or accept a referral. “We should provide them with as much information as possible.” The November Meeting also revealed that significant year end adjustments have taken Council’s initial operating deficit of $4.5 million for year ended June 2022 to a surplus of $1.2 million, as
shown in the 2012/2 Annual Report. Blue Haven’s Interim Chief Operating Officer Joe Gaudiosi, whose role has recently expanded to overseeing Council’s finances, warns against seeing this as an indication a corner has been turned, while noting it better aligns with the $1 million surplus expected in the budget. “Council is still in a precarious cashflow situation,” he says. “The budget result is clearly important but the reality is the cashflows also include upgrading costs that aren’t reflected in these figures. “We are currently $3 million down in our unrestricted reserves and we are effectively borrowing against restricted internal reserves for general operational expenditure. “It is all out in the open and there is a plan to do it for a short period of time until divestment income comes in.” Mr Gaudiosi is happy the figures for the September quarter are in the black ($312,000) but says it is too early in the year to read too much into the $1.8 million positive variance against the budget. In confidential session at the November Meeting, Council declined a request from the purchaser of its Akuna St holding, Level 33, to vary the terms of the settlement. Settlement is due on 2 December.
Jamberoo Mt Rd closed for summer
Repair work to Jamberoo Mountain Road has been further delayed. It will now start in January, and is expected to take several months. This is a blow to residents and businesses who had been counting on an earlier revised commitment for the work to start in November and be open in time for Christmas. Jamberoo Pub’s Jamie Warren says it Mayor Reilly and Gareth Ward MP is terrible news for his inspect some of the damage and other businesses. “It’s a big blow for what is The Bugle in August about usually our busiest time of having to reduce her busithe year. After COVID, the ness hours, is still frustrated landslides have been another at a lack of communication obstacle for us to overcome. and support from Council. “It’s not just Jamberoo “There has been absolutethat will suffer, it will be the ly no communication from municipality as a whole.” Council – not a phone call, He thinks it is time to visit, letter, email, not even a discuss what can be done to standard flyer, nothing.” assist businesses in terms In a statement, Council of a rebate, compensation or says it has communicated to reduction in rates. the broad community, which Natasha Deen of Jamberoo includes local businesses, continued p8 Newsagency, who spoke to