Council to consider seeking feedback on draft revised budget for pool

Published on 20 June 2024

The final costings for the Surf Coast Aquatic and Health Centre are being confirmed, and due to unprecedented price increases, Council needs additional funding to make the project happen.

While the overall project cost is subject to the outcome of the tender process and contract negotiations, which are ongoing and therefore commercial in-confidence, it is proposed to manage the gap between the market price and the current budget through: 

• Value management, to occur prior to any awarding of contract. This involves reducing the market cost through simple design changes with minimal effect on the facility’s program offering, lifecycle costs or sustainable design credentials.  
• Council will consider borrowings of up to $6M.  The exact amount of borrowings required will be determined by the amount of savings that can be achieved through the value management process and potential revenue derived from alternative funding sources. 

At its meeting on Tuesday night, Council will consider endorsing its 2024-25 budget, following a community submissions process. After this is resolved, Council will debate whether to seek community feedback on a draft revised budget, which includes the borrowings, to help cover the project cost increase.

Surf Coast Shire Council CEO Robyn Seymour explained that the centre’s final costings were received after the draft budget had been released for engagement, meaning a separate engagement process was required if Council decides to pursue this option.

“We need to have a budget in place to start the financial year, so Council would need to consider any additional proposed changes to the budget as a separate process.”

Borrowings allow costs to be shared over time. It means future generations can help fund facilities they’ll use.

“If Council decides to pursue the proposed new borrowings, Council’s loans and borrowings ratios will remain within the limits set by Council in the 10-Year Financial Plan and Council’s Borrowings Policy,” Ms Seymour said.

The Victorian and Australian Governments have contributed more than $36.6M, which can only be used to fund the Surf Coast Aquatic and Health Centre.  If the project was not to proceed, Council would not be able to fulfil the obligations in its funding agreements. 

Ms Seymour said consultants with specialist industry knowledge had been guiding project planning, however building costs continued to rise beyond all expectations.

“Quantity surveyors assessed the project design in December 2023 and at that time determined the project cost would be in line with the project budget. When we went to market, the results came back significantly higher in the space of three months.”

So far $46,799,111 has been allocated to the Surf Coast Aquatic and Health Centre, which includes:

• $20M from the Australian Government
• $16.68M from the Victorian Government
• $2.269M through interest earned on grant funding, invested back into the project.
• $7.85M, which Council has previously committed.

The centre is proposed to include:

• An indoor 25m pool for lap/squad swimming and learn to swim
• An indoor warm water pool for learn to swim, exercise, hydrotherapy and leisure.
• Gym and programs spaces.
• Allied health suites.
• Café and supporting amenities.