MOUNT Gambier City Council will need to reassess the funding model for construction of the proposed $39.1m community and recreation hub if the State Government does not match the Federal Government’s $15m allocation, according to Mayor Lynette Martin OAM.
Ms Martin has responded to questions from The Border Watch as a public poll begins to gauge support for the project.
A vote showing a majority of public support is needed for the development to proceed.
“Council has clearly stated this project is based upon funding from the Federal Government, State Government and council’s contribution,” Ms Martin said.
“We are seeking $15m from the State Government.
“Should a lesser amount be invested by the State Government, the council will need to re-evaluate its position and consider if we are able to provide additional funds to proceed with the project.”
However, she said it was anticipated the council would contribute 25pc of the cost of the overall development, based on existing planned rate rises over the coming years.
“Council has maintained its position of not increasing rates beyond the current level of 4.5pc per annum,” she said.
“Council has committed $9.1m, or 25pc of the total cost, to fund the community and recreation hub.
“The matter of contributing more would be an important question for the new council to consider.
“There may be some capacity, but this needs to be balanced with the total financial model, including maintaining rates at their current level.”
She assured the community while council had some flexibility going forward in relation to its contribution to the project, this could only stretch “so far”.
“When running for council and now elected as mayor, I have listened to a large number of people in our community.
“Most understand and appreciate the benefits our city will get from the community and recreation hub.
“My personal view is council has ‘put a line in the sand’ with the community by holding rates at 4.5pc and this should be respected and I stated pre-election that I would agree with this project, provided receipt of appropriate funding, community acceptance and there was no increase in rates to fund the facility.
“While council may be able to contribute more capital to fill any shortfall in grants from the State Government, this can only stretch so far before the project cannot proceed as modelled and presented to our community.”
She said there was limited scope to transform the overall project plan due to the conditions of the sizeable federal allocation from a national fund for community facilities.
“Council’s successful grant application was assessed by the Federal Government and based on a rigorous range of economic and social criteria,” she said.
“The Federal Government clearly considered the application was worthy of $15m being allocated to our community.
“The project as detailed in our application cannot be significantly changed, for example we just cannot simply build half of the project if funding is not received from the State Government.”
