WODONGA Council says there is no funding shortfall for the city’s new $9.8 million performing arts centre and it hopes to rely on the proceeds of land sales, rather than borrowings, to meet its $2.8 million share of the project.
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Chief executive officer Gavin Cator yesterday denied claims ratepayers would be forced to meet further debt incurred by the council as it sought to complete the project.
Instead, Mr Cator said the council’s debt management strategy would ensure the city had a debt of $29 million at the end of the financial year 2012-13, lower than its existing debt of $31 million.
He said the city would make three “balloon” payments of $900,000, $1.8 million and $2.7 million over the next three years, in excess of what it would normally pay on its loans.
That would give the council the opportunity to reborrow $5.4 million in 2012-13 towards the arts centre and new aquatic centre, without having to extend its debt, he said.
“The strategy also says that the council has a number of land parcels that are able and ready for sale and we have this year been proceeding with sales of that land,” Mr Cator said.
Mr Cator said the 2010-11 budget had been adopted with the inclusion of the $3 million federal money for the performing arts centre, announced by Minister Anthony Albanese last month.
“Our strategy with that funding is that demolition will start around the November period this year,” he said.
“The building will be completed in the October-November period next year.”
Mr Cator said the $4 million contribution from the Victorian government towards the arts centre would be included in the council’s 2011-12 budget, alongside any further income the council raised from land sales or other grants.
“To say that we wouldn’t go ahead with the aquatic centre or the performing arts centre because there was a $5 million shortfall when we’re receiving overall $10 million from the state government, is that responsible for us to do?
“We’re saying, ‘no it’s not’. We should be taking the opportunities that are provided while we can.”
Mr Cator said the city had concept plans for the new arts centre but would appoint project managers and architects in the next six to eight weeks.
Councillors would see the concept plans on Monday, with full designs expected to be made public in August-September.
