Published on 02 May 2026
There’s been a lot said in recent weeks about Council’s financial position and the decisions in front of us. I want to take a moment to explain where things stand, how we got here, and what happens next. When this group of councillors was elected, we came in under a state-imposed Performance Improvement Order - that’s 74 actions that needed to be completed to return Council to a sustainable financial position. Significant work has already been done. We’ve delivered fully audited financial statements, lifted all disqualifications and disclaimers, paid back $60 million of debt, completed the sale of Blue Haven Bonaira, and undertaken detailed service reviews to make sure we are efficient organisation. We’ve made real progress. A $28.6m deficit has been reduced to $4.5m.
Our task isn’t finished. Under the Performance Improvement Order we are required to deliver a balanced budget by 30 June 2027 and to break the practice of deficit budgeting. That’s the reality we’re working within. What makes this particularly challenging is some of the proposed changes go right to the heart of what it means to be a community. Services, programs, and support that people value and rely on may need to change, be reduced or ceased as they are not regulated or essential services. These are not easy decisions, and at times it does feel like choosing between the best of two difficult options, or like being caught between a rock and a hard place. In a time when a lot of local governments are struggling with financial sustainability, ours feels more acute and urgent due to the PIO requirements. We continue to look at every possible way to improve our position, including new proposals and opportunities. The draft budget is now on public exhibition, an important part of the process. It’s where the community can review what’s proposed and provide feedback before any final decisions are made. There has been a lot of discussion about the direction we are taking and I understand that. Nothing has been finalised and we are listening. We are proceeding with the recommendations as they stand, because they reflect the financial position we are working through. If there are areas of concern, or ideas that can help improve the outcome, I strongly encourage you to put them forward, because the decisions ahead are important, and they will shape the future of Kiama. Right now, the focus is simple. Have your say. The budget is on exhibition for 28 days. This is your opportunity to put your ideas forward to inform the final decisions. The reality is we cannot avoid those decisions, and we cannot do nothing. We’ve come a long way, but there are still some tough calls ahead and we continue to explore any option available to us. Cameron McDonald Mayor, Kiama Municipal Council