COUNCILLORS in Streethay have debated taking out a £500,000 loan to help fund a new community centre.
The facility has been earmarked for land off Yoxall Way on the Roman Heights housing development.
Around £250,000 has been committed to the project from Section 106 funding, while a further £600,000 in Community Infrastructure Levy cash has also been earmarked.
But a report to a recent meeting of Streethay Parish Council said additional funding was needed:
“The community centre project was initiated to provide a vital space for local residents, offering recreational, educational, and social services.
“The project was originally estimated to cost £1.4million, but value engineering has reduced this to £1.3million, with further adjustments bringing it to £1.12million.
“However, with the adjusted cost at £1.12 million, there remains a shortfall. To cover this and provide a contingency, a loan of £500,000 is proposed.”
The report added that the loan amount would equate to around £500 per household in Streethay – and warned that repaying it over 40 years would equate to £21.36 a year, while a 25-year term would mean an extra £29.93 a year.
It added:
“Given the urgent need to complete the community centre and the lack of immediate alternative funding sources, the £500,000 loan under structured repayment terms offers a solution to progress.
“However, in accepting the loan, this would mean Streethay Parish Council – and in turn its residents – are accepting full liability for the costs of the community centre.
“With a number of housing developments proposed. Should these be approved, this may see an increased need for a community centre, alongside a growth in the council tax base which would reduce the liability of loan repayments as costs are split among a greater proportion of households.”
The minutes from the meeting show that the councillors “agreed to the loan in principle”, but that “outstanding considerations must be addressed by Lichfield District Council before a full commitment of acceptance is made”.
