MOUNT Gambier City Council is likely to fund the $5m shortfall for the $39.1m Community and Recreation Hub from cash savings and loans – not a rate increase – its chief executive Mark McShane said.
The State Government committed $10m to the project, $5m short of the projected tripartite funding agreement between the Federal Government and council needed for the multi-million dollar facility.
While stressing there had not yet been a decision made on whether to fund the remaining $5m, Mr McShane ruled out any changes to the hubs’ blueprint, saying the Federal grant was based on the current design.
“The plans as provided to the Federal Government is how is has been funded,” he said.
“We cannot go about slicing off bits and pieces.”
Currently, council’s contribution towards the build of the project will be approximately $9.1m – made up of savings, loans and part of the annual capital works budget.
Council is likely to decide on contributing an additional $5m at next week’s special council meeting, where council will endorse the full business case to the Federal Government for the Regional Growth Fund application.
Mr McShane said council were in a “very healthy” financial position and had positive cash flow streams, but said the allocation of funds would be discussed by elected members.
“If we have to stretch the envelope a little bit to make it happen, we will,” he said.
“$25m is by far the biggest grant this city has ever experienced.
“I think the community needs to recognise this huge achievement for the community and recognise the State and Federal Government contribution.”
Mr McShane said in the event of council allocating additional funding, rates will remain as they are.
“Rates will not have to increase and council will manage our contribution through our cash savings and overdraft facility,” he said.
“We had always been talking about receiving $15m from the State Government and that is what we sought from the Premier.
“The community obviously want this, so let’s move forward and get this thing moving forward.”
The Premier’s office said the $10m allocated towards the project was a “significant state contribution” for a community sports club.
“That is the level of funding that we have available,” the staffer said.
