Council to borrow millions to fund huge building plan

Council to borrow millions to fund huge building plan

9 May 2012

DOWN Council is preparing to borrow tens of millions of pounds to fund a major series of capital projects across the district.

Up to £21m could be borrowed to fund key projects such as new leisure centres in Newcastle and Ballynahinch, a new community centre and sports facilities in Saintfield and a new sports pavilion in Castlewellan.

The borrowing would be on top of £35m the council has already borrowed to fund other capital projects such as the new council headquarters at the Downshire Estate (£11m) and the planned replacement for the Downe Leisure Centre (£13m).

The decision to increase the council’s borrowing limit to £56m was taken by the council’s Rates Working Party, which meets behind closed doors. This body was originally tasked with keeping the annual rates rise to a minimum but it has recently been asked to come up with a longer term plan for the council.

With Down Council expected to merge with neighbouring Newry and Mourne Council within the next few years, councillors want to leave a “legacy” of community facilities before the new super council is established.

The new amalgamated council will then take over the £56m debt of Down Council along with the debts of Newry and Mourne Council.

There is anger within Newry and Mourne Council over Down Council’s plans to run up such a huge debt. “The decision to build a new council headquarters in Downpatrick was bad enough but saddling the new council with such enormous borrowing is not going down well in Newry,” said one council source.

A Down Council spokeswoman explained the Rates Working Party was set up to find efficiencies and generate savings to minimise rates bills in the district.

“The role of the Rates Working Party over the last few months has been, working co-operatively with officers, to develop a draft budget for the financial year 2012/2013 and to develop a longer term view, up to and beyond 2016/2017,” said the spokeswoman.

“The council has indicated to the Rates Working Party that it wishes to both keep rates as low as possible and to undertake an ambitious capital programme,” she added.

“The council has not yet taken any decision to increase its affordable borrowing limit but through the Rates Working Party is examining the financial impact of such a decision.”