Council's Financial Position Shows Improvement
Kiama Council is preparing for what its chief executive describes as the most challenging budget process in the organisation's history, despite showing significant financial improvement over the past year.
CEO Jane Stroud delivered the sobering message to councillors following the release of the NSW Audit Office's overview of the council's 2024-25 audited financial statements.
The council's financial health has shown marked improvement, with the operating deficit reducing dramatically from $2,698,000 in 2024 to $747,000 in 2025.
Total council equity now stands at $624,145, according to the official audit documents.
Performance Improvement Journey
Ms Stroud highlighted the council's substantial progress in addressing management issues identified by the state government.
"In 2021, the state government assessment listed 47 management issues, which is now down to just four," she reported.
The CEO described the improved operating result as "particularly satisfying" given the extensive changes the council has undergone.
"I don't know that you will find another local government in NSW that has gone through the kind of asset write-down, asset divestment process that this council has," Ms Stroud stated.
She emphasised that the transformation required "an enormous amount of work and coordination, not just from a financial perspective and an accounting perspective, but also from our employee point of view."
Challenging Budget Ahead
The council now faces its next major hurdle: delivering a balanced budget as required by the government-issued performance improvement order.
Ms Stroud has made it clear to staff that this will be an exceptionally difficult process.
"As I've said to all of our staff internally, this will probably be the hardest budget we ever bring down," she revealed.
The necessary savings and efficiencies will be drawn from service review findings and will focus on core council services.
Ms Stroud confirmed that achieving a balanced budget "will remain a really critical mission for our organisation over the next few months" as council staff work to meet the state government's requirements.
