Wodonga Council said on Tuesday it would not seek $7 million in federal government funding for the project after failing to secure $3.5 million in Victorian government money.

The decision means the city will forego other funding bound for the $14 million project – $650,000 from Recreation Victoria, $500,000 from Cricket Victoria and $100,000 in netball cash.

City chief executive Patience Harrington, in replying to a question from former councillor Mike Fraser at last week’s council meeting, said $7 million would be sought from the Commonwealth’s Building Better Regions Fund.

But mayor Anna Speedie said the Victorian government told the council late last week it would not receive its money.

“This new council has chosen and taken the stance it will not take on any new borrowings in the next 12 months, so the $3.5 million could have been offset by borrowing,” Cr Speedie said.

“But the council has decided not to take that decision.”

Cr Speedie declined to say how tight the decision was when councillors discussed the matter behind closed doors.

Cricket Albury-Wodonga chairman Michael Erdeljac, who had anticipated a high performance centre being built at Baranduda Fields, was disappointed.

“The short-sightedness of some of the councillors I think is ridiculous,” he said.

“They don’t understand what would be there for people in 10 to 15 years.”

Mr Fraser, who was “extremely disappointed”, fears the cricket centre will now be lost to Wagga.

“I think you’re giving away $7 million,” Mr Fraser said.

“I would mount the argument….(council have) got $2.5 million sitting in a balance sheet without needing to borrow.

“It is my view if it was $5 million you would still not need to borrow.

“The budget surpluses of each year over the last four years indicate you could expect $1.5 million of surplus per year and it’s then a matter of where the council prioritises how that should be allocated.”

Mr Fraser suspects Baranduda Fields may not proceed until a new council is elected in 2020.

Cr Speedie declined to say the project was dead for this council, noting the 2017-18 budget process would show the community where it was ranked.