Chief executive Brendan McGrath has conceded “it’s starting to feel a bit unlikely” that the building better regions fund was a viable way to win $4 million required for the project after failing on the third attempt.

The full list of recipients was released on Friday, confirming Thursday’s announcements of $6.98 million to expand Howlong pet food manufacturer Cool Off and $2.4 million for works at Wangaratta Turf Club.

Mr McGrath said the council was supportive of the turf club’s project, saying it was positive for the equine industry in Wangaratta and the region – even if it was ranked ahead of the proposed new outdoor pool.

“It’s obviously very disappointing,” he said.

“We probably need to have a conversation with the councillors and test if they’re keen to pursue it, which I assume they will be.”

Three other aquatic strategies and pool projects around the country were funded in the latest round of the BBRF – in Tottenham, Cairns and Northam – and the Department of Industry had always assured Wangaratta Council it had a worthy project close to selection.

“It’s still a very critical project – it’s a first class facility that can be used for national and international events and open up opportunities for sports like water polo,” Mr McGrath said.

Northern Victoria MLC Jaclyn Symes said she was disappointed the federal government had again failed to fund Wangaratta’s aquatic strategy.

“Early last year the Andrews Labor Government announced $1.5 million for stage two of the pool upgrade but the community are no clearer as to when the federal government will pay their share,” she said.

The Victorian government money was earmarked for a new hydro pool, which was being held back until the BBRF was announced, but may now be constructed separately to the outdoor pool to avoid further delays.