Shellharbour City Council is off the hook after Wollongong Council successfully applied to manage community transport for both local government areas.
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Shellharbour Council said the move was "an excellent outcome" for current users of the service.
However, Shellharbour councillor Kellie Marsh said while she was grateful to Wollongong, she was disgusted her council had turned its back on the most vulnerable in the community.
In February, Shellharbour Council voted 6-1 to bring down the curtain on its Home and Community Care service by October 31 in response to impending Commonwealth funding reforms.
Shellharbour Council voted to "transition out of direct service delivery" of community transport at the end of October.
Cr Marsh said the extension for community transport granted by Transport for NSW to Wollongong - with potential for further extensions - showed how Shellharbour council "had jumped too soon".
"I am very grateful for Wollongong Council for stepping up to the plate, but it shows that Shellharbour Council lacked business sense and vision to keep this service going," Cr Marsh said.
The council was "running scared" and staff and volunteers had been let down, Cr Marsh said.
A Shellharbour Council spokeswoman said the council would likely utilise its existing office and bus depot at Albion Park for its Shellharbour service and would provide convenience for volunteers in Shellharbour.
"Existing staff will have the opportunity to apply for the specialist positions once they become available," the spokeswoman said.
Shellharbour Council said existing volunteers would be encouraged to keep volunteering.
All existing clients and service users would still receive services from Wollongong and there would be a focus on minimising disruption to current services.
"The national funding reforms of aged and healthcare services continue to evolve and the transition phase of council from its existing HACC and transport services is taking place," the spokeswoman said.
"Council is providing advice to the relevant state and Commonwealth authorities and recommending the most suitable service providers to continue the aged and healthcare services currently provided by council."
