Kiama Council’s latest report into 7.11/7.12 developer contributions might have skipped the $970,000 loss, but some councillors didn’t just let it slide, they applauded it. And now the video message tells us everything’s fine. The gaslighting hasn’t stopped. It’s evolving. I imagine the internal conversations, “Is this the hill I want to die on?” “Is it worth rocking the boat?” But every time that question wins out over accountability, the damage deepens. Not just to public trust, but to the reputation of anyone who stays silent. When do they call it out? When is enough finally enough?
What Happens to a $1 Million Developer Contribution That Was Never Collected?
Recently, a councillor dismissed community concerns about Kiama Council’s lost $1 million developer contribution from the Golden Valley project by saying, “Jamberoo didn’t need any extra roads.”
Let’s be clear: that’s not how Section 7.11 contributions work. And it’s not an excuse.
What Are Section 7.11 Contributions For?
Section 7.11 of the Environmental Planning and Assessment Act allows councils to charge developers for local infrastructure needed as a result of new development.
That includes:
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Roads
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Footpaths and cycleways
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Drainage and stormwater upgrades
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Community halls and libraries
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Open space, parks and playgrounds
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Traffic calming and local safety improvements
It’s not just about roads. It’s about ensuring our community services, infrastructure, and public spaces keep pace with population growth.
What Would Have Happened to the $1 Million?
If Kiama Council had maintained a valid Section 7.11 plan and the $1 million contribution had been collected from the Golden Valley development, here’s what would’ve happened:
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The funds would have gone into a dedicated infrastructure reserve, separate from general council revenue.
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The money could only be used for works listed in the adopted 7.11 plan, local projects identified as needed due to growth.
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Even if the infrastructure wasn’t needed immediately, the money would remain in reserve and be used when the demand appeared.
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Councils usually have up to 10 years to use the funds. If nothing is built in that time, they must return the funds, but that rarely happens with well-managed plans.
So Why Didn’t Council Collect It?
The developer had agreed to pay the $1 million. They considered it reasonable. But while the development was in the Land and Environment Court, Council repealed its 7.11 plan.
By the time the court made its final ruling, there was no legal mechanism to impose the original $1 million contribution. Instead, the court applied a Section 7.12 levy, which is capped at 1% of the development cost. The developer paid $30,000.
That’s a $970,000 shortfall to the Jamberoo community. Not because of a court loss. Not because of a loophole. But because of Council’s own failure to manage its planning instruments.
Why This Matters
This wasn’t a technical error. It was a preventable governance failure. And it’s been compounded by a refusal to explain what happened or who was responsible.
The community deserves more than a shrug and a video saying “Council did nothing wrong.”
The Jamberoo community lost $970,000 in infrastructure funding and we’re being told not to ask why.
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