Kiama Council has taken another giant leap towards getting back into a financially strong position after its $60 million loan for Blue Haven Bonaira to the NSW Government has been cleared ahead of schedule.

Following last month's settlement of Blue Haven Bonaira with new owners Hall & Prior taking over the aged-care facility, Council repaid the final instalment of $14.6 million on Wednesday to the NSW Treasury Corporation, well ahead of the August 2025 deadline which had been extended in 2023 given Council’s financial position at that time.

Kiama Mayor Cameron McDonald was pleased to see the matter resolved ahead of schedule.

“This final payment improves our Debt Service Cover Ratio, returning it to positive territory, satisfying another requirement of the NSW Government’s Performance Improvement Order,” he said.

“I want to thank the NSW Government for their support, through TCorp, allowing Council the extended time to clear the debt.”

Kiama Council’s remaining loan obligations are $5.6 million for a range of infrastructure projects at holiday parks and Gerringong Library as well as road and bridge improvements.

Chief executive Jane Stroud said the Blue Haven Bonaira divestment was a major part of Council's overall Performance Improvement Order.

“Staff across our organisation have done a great job completing the difficult divestment, including acquitting this loan, while ensuring we have the necessary cash reserves to continue our core Council operations,” she said.

“This has meant we have been able to continue providing services to our community, and confidence to our external regulators, auditors and the NSW Government.

“This is another demonstration that we are well on track to meet the goal of being financial sustainable by 2026/2027.”