Council bosses say they are keen to start spending in communities across Lichfield and Burntwood rather than just continuing to build up financial reserves.
It comes after Lichfield District Council opted to put up the precept on council tax bills by 1.5% for the coming year.
But a review by the Local Government Association said the local authority should also look to start utilising reserves of around £7million that have been built up over recent years.
Cllr Doug Pullen, leader of Lichfield District Council, said there had already been a move away from previous policies of trying to concentrate on building up a financial safety net.
“Over the last decade, the focus has been on protection from things such as the 60% cut in local government funding and to be prudent with our finances.
“But two years ago we began to change that thinking.
“We want to show that we tax for a reason – and that reason is to invest in communities.”
Cllr Doug Pullen, Lichfield District Council
Cllr Pullen said the commitment to the new leisure centre was evidence of the desire to ensure funding was made available for projects deemed important for the community.
“I remember us being told by the former chief executive that there wasn’t money for a new swimming pool so we shouldn’t build one – but the cabinet believed that we should push ahead.
“The Local Government Association review report is clear that we are doing great things but we need to be bolder and use our reserves for place-shaping.
“I fully welcome the recommendations of the review.”
Cllr Doug Pullen, Lichfield District Council
