The City of Busselton has voted to borrow an additional $10 million for the Busselton Performing Arts and Convention Center to help cover construction costs | Busselton-Dunsborough Courier

The city of Busselton is expected to borrow an additional $10 million to cover the construction costs of the Performing Arts and Convention Center (BPACC), as it decided Wednesday evening.

At the council meeting, the city passed an 8-1 motion to borrow an additional $10 million from the treasury to cover part of the $16.5 million still needed to build BPACC.

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

According to city officials, this is to “avoid escalating borrowing costs.”

“Analysts predict up to four interest rate hikes over the next 12 months,” city officials said in a report.

“The advantage the city has when borrowing from WATC is that the interest rate is fixed for the term of the loan, so it makes sense to lock in future borrowings required for the BPACC project as soon as possible.”

The city will announce its decision to stakeholders, before giving final approval to borrow the $10 million in one month.

The additional $6.5 million needed for 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 an additional $10 million already borrowed from the Treasury, through two $5 million loans earlier this year.

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

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