Plans to put Blue Haven on the market get knocked back

But a bailout plan that included a possible rate rise, service cuts and the introduction of paid parking was voted in by councillors.

At the meeting Mayor Neil Reilly had a motion in confidential session that was brought out into open session.

Read more: Concerns over Kiama Council's 'secrecy'

It recommended that council call for expressions of interest in Blue Haven to gauge its value in the market. Cr Reilly said it did not guarantee that council would then sell it.

"The purposes for this this motion is to specifically identify what is the value of the asset," Cr Reilly said.

"Is the market interested in the asset in whole or in part and thirdly and possibly the most important aspect of this motion is to send a strong signal that we are actively doing something to alleviate our cash flow situation instead of waffling about."

Earlier in the meeting, Cr Reilly had expressed concerns that council had done nothing to address the concerns raised by Local Government Minister Wendy Tuckerman in a letter to councillors.

Cr Reilly said it wasn't council's business to be running an aged care centre.

"If we want to keep Blue Haven as an excellent quality health care facility it will have to be owned and managed by others," he said.

"There may be an opportunity to sell part of it. There may be an opportunity to sell all of it but we'll never know unless we go to the marketplace."

Cr Mark Croxford agreed with the motion, claiming Blue Haven "has become an unsustainable business for a small body such as Kiama Municipal Council".

"I think it is beholden on us to ask the market," Cr Croxford said. "If we are able to decouple the ILUs [Independent living units] from the residential aged care facilities, the market will tell us, If we're not, the market will tell us."

Before any sale of Blue Haven could take place the land would need to be rezoned, Cr Cathy Rice noted, adding that this motion "was jumping the gun".

She also felt it unfair on the community.

"This is a slap in the face to our community who should be given the respect of having their views fully taken into account and genuinely considered," Cr Rice said.

"Any move to streamline a future sale before community views are meaningfully considered eliminates community trust in council as a consultative and democratic body."

Council staff was already assessing the options for Blue Haven - including sell, keep or lease - and had requested its own valuation.

Councillors were still waiting for the outcomes of those items, Cr Jodi Keast said.

"By going to the market for any EOI is virtually putting the cart before the horse," Cr Keast said.

"We don't know about the keep, lease or sell options. We don't know of our own internal valuation of the property."

Cr Karen Renkema-Lang said the proceeds from any sale of Blue Haven would take quite some time to affect council's bottom line.

Cr Reilly's motion was lost 5-4, and Cr Imogen Draisma then lodged a new motion that spelt out council needed to find $30-$40 million over the next few years and gave options on how that could be achieved.

This included applying for a special rate variation that would see rates go up, cutting back on capital works and introducing paid parking.

It also called for the work on the sell/keep/lease options for Blue Haven to continue and to receive the reports on valuation, asset management plan and accreditation results prior to the December ordinary meeting.

This motion was passed by council 5-4.

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