'Alarming': Kiama council asked to find $470k for surf club

That shortfall has blown out by just over $100,000 since last week.

The Gerringong Surf Club's work to replace its building at South Werri Reserve was listed last week in the business papers for Tuesday night's council meeting.

During the work asbestos containing material was discovered and the council papers stated the cost of the initial decontamination works was $170,000 and that a further estimated $250,000 of rehabilitation and building re-design works was required to enable the structural works to commence, a total of $420,000.

However, the surf club only had $50,000 to cover any late contingencies, leaving an unfunded cost of $370,000 "which is beyond both the budget scope and the financial capacity of the club".

The council had not contributed any initial funds to the project, which had been funded by the surf club. Now, the club was asking for the council's help.

The report identified a public risk around the lack of permanent lifesaving and permanent toilet facilities for the 2024-25 season if the building wasn't completed.

There was also the "reputational risk" around the incomplete re-construction of a council-owned community facility.

The council staff's original recommendation was that the $370,000 could be funded, with $170,000 from the Development Contributions Reserve and the remainder from the Unexpended Grants Reserve.

But that could change; late on Friday the council was informed the final construction costs had blown out. The club now needed $470,600 to finish the building.

"Council staff require time to ascertain whether the additional shortfall can be met and if it is able to be met within the budget," a late report from council CEO Jane Stroud said.

"Given the council's financial circumstance a request for urgent unfunded and unplanned capital expenditure totalling nearly half a million dollars is both alarming and challenging."

Ms Stroud's report also noted that the surf club members had done "a highly commendable job" when it came to raising the funds but "the asset being constructed is and will remain a council facility which will sit on council's balance sheet".

"The excellent community work and service the club delivers is not being questioned in any way, and I am certain are highly valued by both the community and council," the report stated.

"There are, however, several lessons to be gleaned in this project in terms of project management, and community-driven replacement of council-owned facilities versus planned strategic replacement and renewal of council assets."