The District Council of Tumby Bay have agreed to move forward with their plans to borrow $1,540,000 to help fund their $3.8 million stormwater management project.
The council will receive over $2.4 million in funding from the Federal governments Building Better Regions program, but still require further funds to complete the project.
Council decided to lodge their loan application with the South Australian Local Government Finance Authority for the sum of $1,540,000.
Deputy chief executive officer, Dion Watson said he should have the loan application completed by Friday as the council could not afford to have the funds held up and further delay the project.
“We don’t have the cash to fund this project,” he said.
“We wouldn’t be able to manage it without the loan.”
The 10 year loan is currently set at a 4.25% interest rate, requiring a $95,321 repayment every six months by council.
Deputy major Geoff Stewart asked if the council could accommodate the loan repayments without a rate increase.
Mr Watson said he did not believe it would require a rate increase and that the current long term financial plan would accommodate the figure.
The councils loan will go towards purchasing three lots of land on Dutton Terrace and Robert Street for $240,000, that were proposed in an August meeting for stormwater drainage works.
Councillor Bob Lawrie voted against the proposed loan as he said he did not like the project from the very beginning.
“I’m voting against it, as I haven’t liked it (the stormwater project) from the start.”
Council undertook a stormwater management study in 2014 to focus on protecting property from the risk of flooding and to help manage it in a safe and sustainable manner.
The $3.8 million project aims to implement findings from the 2014 study and improve Tumby Bay’s stormwater management.