SEVEN projects are set to get a boost after Bathurst council's decision to reallocate the go-kart track loan, however, it could be some time before any of them see the money.
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The council agreed to source a $2.25 million loan for the go-kart track in October, 2020, with only about $200,000 of it expended on that project as of May, 2024.
At its meeting on August 7, 2024, the council resolved to reallocate the remaining balance of the loan to the following projects:
- Refit of the library toilets - $500,000.
- Bathurst Indoor Sports Stadium roof - $300,000.
- West Street stormwater renewal - $300,000.
- Asset management plans - $300,000.
- Cyber security initiatives - $300,000.
- Destination marketing funding - $80,000.
- CBD under awning lights - $50,000.
Despite selecting these projects, there is little funding actually available to direct towards them at this time.
The council, as of June 30, 2023, had used $1,790,000 from the go-kart loan to fund additional works required to repair road and stormwater assets following the November, 2022 floods.
Windy 1100 land sales - which, by the council's own admission, have been slow - will be used to replenish the money that was borrowed from the loan for those repairs.
As those sales eventuate, money will be able to be distributed to the selected projects.
Their commencement will also be withheld until after the council's year-end audited cash position is finalised and it is confirmed there are sufficient funds within its restricted assets.
Allegations of 'pork-barrelling'
The council's decision has been slammed by Figuring it Out BRC (FIO), a community action group led by Sophie Wright and Natalie Cranston, who are also running a council election campaign.
In a statement released on August 7, prior to the start of the council meeting, FIO said the councillors were "totally out of touch with the council's precarious financial situation".
"They are demonstrating gross financial mismanagement and pork-barrelling with schemes and dreams that may never see the light of day because they have already spent the money they are now allocating," the group said.
FIO also alleged councillors were "spending ratepayer funds for projects designed to please voters and win votes" ahead of the September 14, 2024 council election.
Mayor Jess Jennings denies this is the case, saying FIO's suggestion was "absurd".
He said that when a loan is moved from one project to another, the community has a right to know where the money will be directed, which was the purpose of the August 7 meeting.
"We have to be transparent and accountable for every cent of ratepayers' money and that's what we were doing in that instance," he said.
"Bear in mind, a reasonable amount of deliberations went into the final make-up. We had a lot of internal discussions and a working party on it and came up with that final recommendation, which is why councillors are elected in the first place, to make decisions like that.
"... Anybody who opposes transparency and accountability is not cut out for local government."
How can council allocate money that's been spent?
Council's finance director, Aaron Jones, said this was the first time Bathurst council had reallocated money for projects from an expended loan.
Speaking to the Western Advocate, he explained that it is uncommon because, ordinarily, loans wouldn't be drawn down for anything other than the intended purpose.
However, he said the council was in a "unique financial situation" around 18 months ago when that had to be done.
It is permissible for the expended loan money to be reallocated.
"It's not a common practice, but, whilst not ideal, there's nothing wrong with it," Mr Jones said.
Explaining how it is possible, he said it is because the loan money will be reimbursed.
"Yes, the loan's been drawn and the loan has been significantly expended, but it's been expended on projects that the loan was not originally intended for, hence the funding needs to be reimbursed, and we've earmarked the Windradyne land sales to reimburse that," he said.
"Once the loan has been reimbursed, then those projects progressively can commence."
The council would have found itself in the same situation had the allocation for the loan remained with the go-kart track project, as it would have needed to use land sales to reimburse the loan so the track could be built.
