Ballina Shire councillors have approved a $17.7 million budget for the refurbishment of the Alstonville Cultural Centre and library, despite concerns over the budget blowout.

The project, which refurbishes the existing cultural centre rather than constructing a new building, has climbed to a total budget of about $17.7 million once contingency, earlier costs and shortfalls are included.

Councillors were told the tendered construction price is $16.568 million, but refurbishment projects often carry hidden risks that push costs higher. 

It is a pattern familiar to homeowners: large renovations can end up costing more than starting from scratch.

Alstonville councillor Therese Crollick said the plateau had gone without a functioning community centre for years.

“If we don’t do it now, it won’t get any cheaper,” she said.

 “We really need to get on and do this for our residents.”

SRV decision tightens focus on finances

Earlier in the same meeting councillors approved the special rate variation, which will lift rates by more than 26 per cent over five years. 

Several councillors said that decision meant they must examine project budgets more closely.

Greens councillor Erin Karsten, who sits on the Audit, Risk and Improvement Committee, moved to remove the recommended $1.5 million budget increase and require a value-engineering review to keep the project within its original limit.

She said council’s reserves were “fully committed” and warned that starting such a large refurbishment without tighter controls carried financial risks so soon after adopting the SRV.

Her amendment was defeated.

Staff warn renovation risks are real

General Manager Paul Hickey said the Alstonville project was one of two major builds council will manage simultaneously, alongside the so-called Twin Bridges duplication in Ballina, which includes new crossings and lane widening at North Creek Canal and Fishery Creek.

“These two big general fund projects will take twenty to thirty million dollars from our reserves over the next eighteen months,” he said.

He said refurbishment projects always carry unknowns.

“With a renovation you uncover things as you go, so you must have contingency,” he said.

“This is one of the highest-risk project types council can deliver.”

Calls for caution and confidence

Cr Simon Kinny backed the project but warned that council needed strict oversight.

“We need this facility, but we also need to watch every dollar,” he said.

Cr Phil Meehan said he believed the project team could manage the risks.

“I trust our staff to get this right,” he said.

“They know the risks and they know how to control them.”

Mayor Sharon Cadwallader supported the original recommendation, saying refurbishment needed contingency to avoid delays or half-finished works.

“You cannot go into a large project without a contingency,” she said.

Final vote clears path to construction

The amendment to restrict the budget was supported by Crs Karsten, Ramsey and Dicker but was defeated. The original motion then passed with Cr Karsten voting against.

Council will now award the contract to Hutchinson Builders, increase the project budget by $1.5 million, and bring updated funding reports back to the February meeting.

Construction will get underway in the new year with council preparing for a demanding 18 months as the Alstonville rebuild and the bridge duplication progress at the same time.

For plateau residents, the decision means the long wait for a modern community and library space is finally close to ending.