The City of Busselton voted to borrow another $10 million for the Busselton Performing Arts and Convention Centre, to help cover building costs

The City of Busselton decided to borrow a further $10 million to cover costs for the Performing Arts and Convention Centre. Picture: Supplied.
The City of Busselton decided to borrow a further $10 million to cover costs for the Performing Arts and Convention Centre. Picture: Supplied.

The City of Busselton is set to borrow a further $10 million to cover costs to build the Performing Arts and Convention Centre (BPACC), as it decided on Wednesday night.

At the council meeting the City carried a motion 8-1 to borrow another $10 million from the Treasury to cover some of the $16.5 million still needed to build the BPACC.

While the City previously planned to include this funding in the next annual budget, the loan is being brought forward amid rising interest rates.

According to City officers, this is meant to "avoid escalation of borrowing costs."

Related:

"Analysts are predicting up to four interest rate rises in the next 12 months," City officers said in a report.

"The benefit that the City has when borrowing from the WATC is that the interest rate is fixed for the life of the loan. It therefore makes sense to lock in future borrowings required for the BPACC Project as soon as possible."

The City will advertise it's decision to stakeholders, before giving final approval to borrow the $10 million in one month.

The extra $6.5 million needed in funding is expected to be covered by grants or the City's existing cash reserves.

The decision to take out the $10 million loan follows another $10 million already borrowed from the Treasury, through two $5 million loans earlier this year.

The $38 million Busselton Performing Arts and Convention Centre was approved to go ahead in November, and construction is already underway.