Ratepayers will have to pick up an $80,000 debt after Moyne Shire Council waived a loan taken out by a community group more than a decade ago to fund Port Fairy's pool.
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The Port Fairy-based Belfast Aquatics facility's financial report came before councillors at their monthly meeting on Tuesday night, along with a recommendation to act as guarantor for a proposed $50,000 overdraft and to forgo the $80,000 loan.
Councillor Daniel Meade said the facility had performed well financially and while he supported the council acting as guarantor he was against writing off the loan.
"They are doing such a good job with their improvement which means they should be a able to afford to pay off that loan," Cr Meade said.
"To forgo the loan sets a dangerous precedent for any community groups who might do the same in the shire."
The Belfast Aquatics Committee operates autonomously from council and was set up in 2006 on the proviso that it did not need further funding from the council.
The council loaned $100,000 to the committee during construction of the facility, and the committee has since paid back $20,000 of that loan.
Cr Jordan Lockett rejected claims that writing off the loan set a precedent and said any future write-off would "be decided on its merits".
"We are all about supporting communities across our shire, if someone is struggling with a loan, come and have a chat with us," Cr Lockett said.
Cr Jill Parker also supported waiving the loan.
Cr Mick Wolfe, who used his casting mayoral vote to narrowly support waiving the debt after councillors were divided three-three, said the write-off would allow the committee to spend the money on facility upgrades.
"We can assist them by writing off the loan and giving them financial independence to go forward," Cr Wolfe said.
Cr Jim Doukas, who with Cr Ian Smith voted against writing off the loan, said the write-off would "split the community".
"It will split the community between Port Fairy and the rest of the shire," Cr Doukas said.
The council will also act as guarantor for a $50,000 overdraft to upgrade the facility's ventilation system.
The committee applied unsuccessfully to have the upgrade included in the council's 2019-20 budget.
Cr Colin Ryan was absent from last night's meeting.
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