Kiama Council 27 May 2026 Extraordinary Meeting
On 13 May 2026, Council received by way of service a notice of intention to vary performance improvement order to Kiama Council:
1) Letter to Mayor Cameron McDonald and General Manager Ms Jane Stroud signed by the Minister for Local Government, the Hon. Ron Hoenig MP.
2) Variation of Performance Improvement Order signed by the Minister for Local Government, the Hon. Ron Hoenig MP.
Council has called an extraordinary meeting for Wednesday 27th May 2026 at 5pm to discuss the implications of the letter.
The full agenda which includes the letters, can be downloaded here.
A summary from the Agenda says:
Summary
Kiama Municipal Council was issued with a Performance Improvement Order (PIO) under section 438A of the Local Government Act 1993 on 8 November 2022, by the then Minister for Local Government, the Hon. Wendy Tuckerman MP. The period of compliance with that order finished on 30 June 2023.
With the change of NSW Government, the new Minister for Local Government, the Hon. Ron Hoenig MP, undertook a review of Council’s compliance reports and at the Minister’s request Mr John Rayner was appointed to undertake a further review. Based on the findings of the Rayner report, the Minister determined to issue Council with a Notice of Intention to vary a Performance Improvement Order on 30 January 2024, with the final Varied PIO being issued 23 May 2024. The period of compliance with this order is due to finish on 30 June 2026.
On 13 May 2026, Council received by way of service a notice of intention to vary performance improvement order to Kiama Council:
1 Letter to Mayor Cameron McDonald and General Manager Ms Jane Stroud signed by the Minister for Local Government, the Hon. Ron Hoenig MP.
2 Variation of Performance Improvement Order signed by the Minister for Local Government, the Hon. Ron Hoenig MP.
Financial implication
Some of the work required to be undertaken has been included in the draft 2025-26FY budget, there are some new actions without costs associated with completing the activities.
Risk implication
There is a risk that if Council does not comply with the PIO and improve its operating position that further Ministerial interventions will be imposed. The varied PIO makes note of a potential financial controller as the next intervention possible. Continuing to fail to meet Office of Local Government benchmarks for financial sustainability (performance ratios) is not an acceptable outcome.
Policy
Local Government Act 1993
Item 7.1EXTRAORDINARY MEETING 27 MAY 2026
Report of the Chief Executive Officer
7.1 Receipt of unsigned Performance Improvement Order Variation (cont)
Consultation (internal)
Councillors and staff have been informed of the proposed intention to vary the PIO via
communications on 14 May 2026.
Communication/Community engagement
Council will consider the proposed PIO and make submissions within the 14-day period. Once confirmed this will be made available for the community. Council has advised the general community that it has received the enclosed correspondence.
Attachments
1 Letter from the Hon. Ron Hoenig MP – Variation to Performance Improvement Order – 13 May 2026- redacted⇩
2 Unsigned Variation to Performance Improvement Order⇩
Enclosures
Nil
Item 7.1
RECOMMENDATION
That Council:
1. Note the correspondence dated 13 May 2026 from the Minister for Local Government, the Hon Ron Hoenig MP outlining his proposed intention to vary the Performance Improvement Order under section 438A(6A) of the Local Government Act 1993 (NSW).
2. Delegate to the Chief Executive Officer to:
a. Thank the Minister for Local Government for outlining that a variation to the current Performance Improvement Order is appropriate to ensure that the Order remains effective, targeted and responsive to Council’s current circumstances,
b. Thank the Minister for Local Government for providing Council with the opportunity to respond in an appropriate manner.
c. Provide the Minister for Local Government with the feedback contained within this report by 28 May 2026.
