Kiama councillors have voted to sell off aged care business Blue Haven Illawarra in a bid to keep the council afloat amid financial woes.
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Councillors received a forensic assessment report on the council's financial management since 2016 at an extraordinary meeting on Thursday night, which cemented the need for immediate and long-term action to keep the council financially solvent.
The council's chief executive officer Jane Stroud said it was unsustainable for the council to operate a "complex" aged care business alongside its core local government responsibilities.
"When I carefully consider all the facts available, I can no longer see a financial solution that allows council to continue to keep owning and operating Blue Haven, without risking the business of local government," Ms Stroud said.
Blue Haven includes a residential care facility, independent living units, home support services and community transport.
The prospect of selling off Blue Haven was flagged last month, after Ms Stroud presented an earlier report that outlined the council's dire financial position.
Councillors agreed to give Ms Stroud the authority to begin the sale of Blue Haven's properties through a public tender process.
"For us to refocus on being a local government service at our core, we need to allow Blue Haven to have the dedicated, direct leadership and attention that any complex aged care businesses deserves," mayor Neil Reilly said.
The councillors also voted that a number of conditions be included in the contract with McVay Real Estate.
These include that the "high standard in quality of care" for the residents and families of the Blue Haven residential facility, and the "good reputation and care" of its independent living and home support services be "maintained, protected and uninterrupted", and continue to meet legal requirements.
Councillors also want to ensure the working conditions are maintained for Blue Haven staff.
"The wellbeing and care of Blue Haven residents and their families remains the highest priority and we will ensure that care is not compromised as we work through the various stages leading to the sale," Cr Reilly said.
The forensic report presented to councillors also outlined the council's cash flow position and the risks associated with solvency, which immediately threatened the organisation's viability; the deficit position in the proposed budget for 2022/23; a continued trajectory of financial loss; and diminished council cash flow for core services.
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Natalie Croxon
Reporter at the Illawarra Mercury, mostly covering social affairs. Previously of the Bendigo Advertiser, Northern Daily Leader and Quirindi Advocate. Our Watch award winner.
Reporter at the Illawarra Mercury, mostly covering social affairs. Previously of the Bendigo Advertiser, Northern Daily Leader and Quirindi Advocate. Our Watch award winner.
