Some ratepayers worry the escalating costs of a key South Otago civic project could blow out to $30 million.
At a meeting on March 30, Clutha District Council revealed it was considering an additional $2.5 million grant for the Clutha Community Hub build in Balclutha, following a $7 million budget overrun.
The question of whether and how to fund that grant was discussed during an annual plan "soapbox" meeting at the town’s Cross Recreation Centre late last week.
Although only about a dozen members of the public attended, several were vocal in their criticism of the budget overrun, despite the council only being a funding contributor.
After replacing the former Balclutha War Memorial Hall was agreed upon during consultation in 2016, the council-backed group the Clutha Community Hub Charitable Trust was established to manage the project.
The new hub was originally to be funded 50:50 by ratepayers and a $7.5 million Provincial Growth Fund "shovel-ready" grant.
The trust announced a revised cost for the project of $22 million last month, increasing to $24 million when direct council-related costs such as landscaping and car parking, and third-party funded memorial gardens were included.
During the soapbox meeting, Owaka ratepayer Trevor Hewson said, based on similar projects occurring elsewhere at present, he believed the true cost would be closer to $30 million.
He questioned whether the council had allowed for a 15% increase in the hub footprint from its original plan, and suggested it loan the proposed sum to the hub trust, rather than granting it outright.
Others present described the budget shortfall as a "messy situation".
One man, going by "Jock" challenged Clutha Mayor Bryan Cadogan to "guarantee" the project would not exceed its new budget.
In response, Mr Cadogan said he "had faith" in the trust.
"If they’re given the ability to secure the future fit-out costs, then we’re coming in for the amount we’re saying now."
He said the trust was working quickly to "tie down" procurement for the remainder of the project, which would "de-escalate" financial risk.
Submissions on the annual plan close at 5pm tomorrow.
