Council wants to raise the debt limit to £30m (From Worcester News)

Council wants to raise the debt limit to £30m

9:30am Tuesday 22nd January 2013 in News By Tom Edwards

COUNCIL chiefs in Worces-ter say no decision has been made over how to pay for a proposed £13 million swimming pool – despite planning to massively increase debt limits.

Bosses want to increase the city council’s “authorised debt limit” from £15.5 million to £30.5 million by 2015/16. The move, revealed in an in-house report, is being made because of the need to finance both the swimming pool and a scheme to help more first-time buyers get a home. Both projects have the support of the Conservative administration, but there is no cash in the general budget to pay for them.

Bosses are hoping a substantial bulk of the funding will come from other sourcesto avoid the need to borrow the entire £13 million.

Under the proposal a 25-metre eight-lane pool, 150-station gym, dance studios, creche, 250 seats for spectators and parking for 350 cars will be built on land next to the existing Perdiswell Leisure Centre, which will be demolished.

The authority undertook lengthy consultations last year, and will be charged with making a firm decision one way or the other this year, before work can start with a view to opening in 2016. The housing scheme is a partnership with Lloyds TSB, which will help about 39 first-time buyers get on the housing ladder by offering mortgage indemnities. The council wants to back it with an initial £1 million.