KIAMA, NSW – In a heated extraordinary meeting on Tuesday night, Kiama Municipal Council narrowly voted 4-3 to approve draft budget parameters aimed at slashing at least $5.4 million from the bottom line. The move, intended to steer the council toward financial sustainability, has sparked significant community backlash over proposed cuts to frontline services and staff.

The Financial Mandate
The council is currently operating under a state-government-issued Performance Improvement Order (PIO), which mandates a return to a balanced budget by the 2026-27 financial year. CEO Jane Stroud’s report emphasised that these “tough calls” are necessary to meet legal requirements and ensure the long-term viability of the local government.

Proposed Cuts and Changes
The approved parameters will form a draft budget that includes several significant measures:

• Job Losses: Potential axing of approximately 30 full-time equivalent positions.
• Service Reductions: Proposed elimination or significant scaling back of Youth, Cultural, and Community Services.
• Facility Hours: Reduced operating hours for local libraries and the leisure centre.
• Asset Management: Suggestions to move the Kiama Historical Society from the heritage Pilots Cottage to allow the site to be leased for commercial use (such as a cafe or short-term rental).

In a gesture of “shared pain,” an amendment by Cr Stuart Larkins was passed, ensuring councillors refuse pay rises and cancel most ratepayer-funded travel for the next year.

Community and Political Reaction
The meeting was marked by high tensions. A packed public gallery and dozens of protesters outside heard from speakers who argued that the cuts target the community’s most vulnerable. Cooper Lewis, representing local youth, warned that “trading the safety of our children to balance a ledger” was unacceptable.

State MP Katelin McInerney described the measures as a “short-term bandaid,” while the United Services Union (USU) accused the council of an “austerity-driven” approach that threatens local livelihoods.

The Path Forward
Mayor Cameron McDonald, who was absent due to a long-planned family holiday, issued a statement clarifying that no final decisions have been made. He emphasised that the vote only sets the stage for a thorough consultation process.

The draft budget will be prepare ahead of the next Council meeting on 21st April, and there will be a 28 day public comment period before the Council ultimately adopts its budget.

Read more from the Illawarra Mercury.