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Broke and broken Councils - and why an Independent MP matters for Kiama

The Bugle App

Kate Dezarnaulds

10 September 2025, 11:00 PM

Broke and broken Councils - and why an Independent MP matters for Kiama

I’m standing as an independent candidate in the Kiama by-election because our community deserves better and this by-election is a once-in-a generation opportunity to deliver it.


Across the Kiama electorate, our three independent councils — Kiama, Shoalhaven and Shellharbour — are under the pump. Rates rise, roads crumble, coastal risks grow, and the cultures can get toxic. The reflexive response is our national sport of council bashing.


The true story is local government is created and constrained by NSW law, and the funding architecture councils rely on has been eroded and gamified over decades to benefit our major parties.


If we want reliable services and resilient communities, as local MP I am determined to tackle the root cause of council challenges and use the power of the position to fix the system.


Most people don’t realise councils exist under the NSW Local Government Act. Their powers and obligations are set in Macquarie Street.


They deliver local public goods - roads, libraries, parks, waste, stormwater, local planning - from a revenue mix they don’t control: rates capped by a state-set peg, fees constrained by regulation, and grants determined by postcode for political gains.


When the state shifts costs or changes rules, councils wear it first.


Here’s what’s broken


Federal Financial Assistance Grants once sat near 1% of Commonwealth tax revenue; today they’re about 0.51%. Restoring the pool toward 1% would almost double predictable, untied funding - meaning planned maintenance, not photo ops.


Cost shifting: responsibilities pushed down without matching, permanent funding - from parts of emergency services to new compliance burdens.


The rate-peg straitjacket: annual caps rarely keep pace with construction, insurance and disaster repair spikes. Constraining special variations leaves ageing infrastructure unfunded.


The Emergency Services Levy (ESL): councils must pay a fixed share of the state’s emergency services budget. When budgets lift mid-year, councils cop unplanned bills - every dollar diverted is a dollar not spent on roads, drainage or coastal protection.



Disaster “replace, don’t improve”: recovery funds too often rebuild what failed rather than building back better to prepare for the next event.


Competitive grants that gamify investment: projects follow political calendars, not logic or need, and too often projects start without the enabling works in place.


We’re living the consequences. Kiama faces structural deficits and serious coastal risks. Shoalhaven carries a huge roads and bridges backlog after fires and floods. Shellharbour’s delivery is dragged by governance “noise”. These aren’t unique failures - they’re predictable outcomes of a narrow, volatile, politicised funding model.


This is where an independent MP can make all the difference.


I’m not bound by party factions or backroom deals. I can name the root causes and fight to fix them. I already have strong relationships with Independents in the NSW Parliament, including Alex Greenwich MP, Jacqui Scruby MP and Judy Hannan MP.


They’ve shown what’s possible when you aren’t tied to a party machine - from landmark reforms in Sydney to millions delivered for Wollondilly.


They encouraged me to step forward. If elected, I’ll bring those connections to work for Kiama from day one.


An Independent MP’s job is not to splash money to shore up support for a major party, it is to ensure that money goes where it’s needed, not where it suits the party in power.


That means insisting on planning-led synchronisation: when the state funds highways and hospitals, the local enabling works - feeder roads and bridges, sewer and water upgrades, public transport links, and social and key-worker housing - must be funded and timed together so projects open ready to help, not hurt liveability.


It also means making building back better the default in disaster recovery: drainage upgrades ahead of storm season; resilient pavements and bridges; coastal adaptation that protects public and private assets; bushfire buffers designed for today’s risk.


Rebuilding to yesterday’s standard or putting on more band-aids is a false economy.


And we must clean up governance so councils become safe, stable workplaces that retain good staff and deliver for residents.


That requires independent complaints handling for top roles and a standard integrity framework that targets real misconduct (fraud, corruption, undue influence).



As an independent here is the reform agenda, my priorities will be:


Restore grants toward 1% of Commonwealth revenue on a clear timetable - we need realistic base funding for reliable services.


Stop cost shifting and urgently reform the Emergency Services Levy so responsibilities match funding.


Replace the rate peg with a transparent, needs-based framework tied to real input costs and growth.


Modernise developer contributions so existing ratepayers don’t subsidise profit-driven growth.


Swap pork-barrel competitive grants for a predictable, independent, needs-based pool that allows multi-year planning.


Mandate synchronisation between state “big builds” and local enabling works.


Embed betterment as the default setting for disaster recovery and preparedness.


Lift standards with independent integrity processes and simpler, outcomes-focused reporting through a much more active Office of Local Government.


Over recent months, I’ve been out listening to residents, small businesses, community groups and experts to understand what matters most, what the state can actually change, and what needs urgent attention.


NSW has a proud tradition of independents who lift integrity and accountability for everyone.


John Hatton AO, the “father of ICAC,” proved what one determined Independent can achieve and has endorsed me as the best person for the job.


“Kate Dezarnaulds is the only candidate in this race with the independence, integrity, and courage to speak up for her community—without fear or favour,” Hatton said.


“She’s not here to climb a party ladder. She’s standing to serve the people of Kiama, and I believe she will do so with honesty, transparency and a genuine commitment to public service.”


This by-election is a once-in-a-generation chance to put Kiama back at the centre of decision-making. We don’t need to be grateful or dependent.


Funding and integrity settings are statutory responsibilities, not favours. If we stop the council-bashing and fix the architecture, we can turn “broke and broken” into stable and delivering - vibrant streets, reliable services and homes people can actually afford.


That’s how we protect what we love and prepare for what’s coming next.


My name is Kate Dezarnaulds. I’m asking for your support to be your independent voice for Kiama - to fight for the systemic fixes that the major parties won’t, and to deliver the community-first outcomes we need.


Kate Dezarnaulds

Community Independent candidate for Kiama


Please note - this editorial is paid content