In the process of running council and its aged care business, Ms Stroud found some matters needed to be brought to wider attention.

Read more: Kiama council teeters on the brink of collapse

"Across the board there has been a lack of planning, governance, resourcing and quality systems and procedures to help inform quality council decisions," her report says.

"The businesses in their current operating states, without immediate and sustained correction are not sustainable."

The 11-page document suggested a range of measures including financial reviews and separating the budgets of council and Blue Haven.

Council papers summed up three three fundamental matters immediately affecting council - financial sustainability, organisational capability, culture and performance and risk and governance.

In what was the first council meeting since the local government election, councillors voted with a minimum of discussion to pursue a range of measures to begin dealing with the issues.

These included calling on Ms Stroud to "prepare strategic improvement plans for formal council consideration and adoption" as well as committing to reporting monthly on the council's progress.

The main discussion was in relation to Cr Karen Renkema-Lang's motion adding in a request that Ms Stroud also report back to council on the "key risks".

That motion was carried.

Council also called for the hiring of a financial expert to help build a system of monthly reporting and allocate an extra staff member to the finance department.

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