GAWLER Council has revealed the Gawler Civic Centre was delivered more than $1 million over budget, due to an “optimistic view” of the condition of the original town hall and institute buildings.

A financial closure report, as well as confidential council items from the duration of the redevelopment project were released to the public over the weekend, in the lead up to last night’s council meeting.

The report revealed the project had been delivered for $15.47 million, $1.159 million over the original budget of $14.311 million announced at the commencement of the redevelopment.

Ratepayers will wear the overspend, with the cost of the project to council increased to $9.87 million from $8.7 million.

A Federal Government grant of $5.6 million through the Building Better Regions Fund completed the funding.

In February last year, The Bunyip reported the council had increased the contingency amount associated with the project to cope with “unforeseen problems” relating to the condition of the stone walls and façade of the more than 150 year old buildings.

The increased contingency amount was kept secret at the time, but was revealed to be $1.217 million in the financial closure report.

A report presented to elected members on February 20, 2018, said the contingency increase needed to be kept secret from the public and Badge Constructions as it “...would potentially expose the
Town of Gawler to superfluous and ambit claims”.

To deal with the project overspend, Gawler mayor Karen Redman said council has focused on limiting the value of capital works, with its 2019/20 budget set to deliver a “nominal” surplus.

She said the council had absorbed the additional costs of the redevelopment in a “balanced and sustainable way”.

“In summary, due financial diligence has culminated in the additional cost of the Gawler Civic Centre redevelopment project being able to be accommodated without any unplanned spikes in General Rate revenue,” she said.

“The Long Term Financial Plan continues to forecast modest increases of three per cent over the life of the plan.

“Indeed, in 2018/19, council ultimately adopted its budget incorporating an increase of general rate revenue, from existing ratepayers, of only 2.4 per cent.”

The council was also put under financial strain when $2.246 million of surplus council land earmarked to be sold to fund part of the redevelopment only eventuated this financial year.

The delayed land sales caused the council to draw down on its cash advance debenture during the project more than originally forecast.

As a result, the council did not include proceeds from surplus land sales in its 2019/20 budget or its long term financial plan.

Despite the blown budget, Ms Redman said the council is of the view the cost of the project was a “sound financial investment”.

“It is important to note that the Civic Centre redevelopment project was a unique and major inter-generational project, culminating in the restoration and refurbishment of the state heritage-listed Town Hall and Gawler Institute after decades of neglect,” she said.

“The Civic Centre Redevelopment Project – Project Evaluation report included in the agenda notes the tangible and considerable community benefits that will be derived from the project for  decades to come, as reflected by the increasing utilisation of the whole facility since its official opening earlier this year.”