THE Millicent and District Community Club has been thrown another lifeline by Wattle Range Council as it struggles to repay a $400,000 community loan.
At Tuesday’s monthly meeting, councillors resolved to accept interest only payments from the club for its twice-refinanced loan until February 2019, with interest and principal repayments to resume from March 2019.
The loan, which was to be paid back in the current financial year, has an outstanding balance of $194,000.
Following a deputation to council in September last year, the club’s outstanding principal repayments – totalling $2605 per month – were deferred until March 2019.
Community club management committee chair Matt Hann told the chamber a number of changes to processes, staff and management had resulted in reducing costs and allowed the board to pay debt.
Council heard the club’s previous $64,000 Australian Tax Office debt had been reduced to $37,000, while the superannuation debt had decreased to $29,000.
Mr Hann emphasised the club was reviewing its cost structure after historically running lower in prices to be more competitive in the market.
Despite the board’s positive outlook, Councillor Dale Price raised concerns about further payment deferrals.
“It’s just an ongoing issue which we need to settle,” he said.
“We have an obligation to the ratepayers to protect their interests and we also have an obligation to ensure the social wellbeing of our ratepayers.
“These two are not operating consistently.”
Cr Gwenda Lawlor opposed the adjournment, stressing “they just have not got the capacity to pay”.
In supporting the deferral, Cr John Drew urged elected members to reflect on councils “considerable” pledges to sporting facilities in their deliberations.
“We need to think of those people and the facility the community club provides those who are not involved with sporting clubs,” he said.
While sympathetic to Cr Drew’s argument, Cr Glenn Brown said the club had shifted away from its original philanthropic roots and adopted a more business orientated model.
“It was more a community club years ago when it was raising money from its activities and donating money to the community,” he said.
“On that basis, you would say yes it’s worth supporting.
“The very people that were once benefiting from the community club are now competing for that same dollar.
“They became another business and now compete with local pubs and we would not subsidise a pub that could not stand on its own two feet.”
Mayor Peter Gandolfi said ratepayers were “better off” with maintaining the current interest conditions as it attracted a 2.91pc return on the funds.
“We’re actually making 1.16pc though the repayments through the community club,” he said.
“If we had that cash, we’d actually be earning less than the interest only payments from the club.
“Basically tonight we’re making a decision on whether they go into receivership or not.
“If I was the lender, I’d be pleased I was getting 80pc interest.”
Councillor’s Price, Brown, Drew, Peter Dunnicliff, Dennis Muhovics and Kevin McGrath supported the deferment, with Cr Lawlor and Rob Dycer voting it down.
