THE Kangaroo Flat Community Enterprise fears Bendigo will become a "laughing stock" among other levels of government should council not contribute to the planned $30 million aquatic centre.
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The group, which represents the Kangaroo Flat community, believes recent comments from some City of Greater Bendigo councillors suggest the Kangaroo Flat Aquatic Centre does not have full support.
Kangaroo Flat Community Enterprise president Jack Lyons said the community needed to "stand up" to make sure the project went ahead.
"There are fears council is considering taking the top priority status away from this project, and that will be catastrophic for the community, the city, council's reputation and Bendigo's future growth," he said.
"Why would Bendigo council be believed when asking for funding in the future?
"One thing is very clear. The government will not let this $15 million be spent on anything else in Bendigo. If council says 'no' to the pool, this money will be lost forever."
Council is considering its contribution to the project as part of its 2015/16 draft budget, to be released in mid-April.
Mayor Peter Cox said a business case for the project is also likely to be released before the final budget.
Current plans show the demolition of the existing Kangaroo Flat Leisure Centre to make way for the aquatic centre.
The previous State Government contributed $15 million to the Kangaroo Flat Aquatic Centre in May last year.
Mr Lyons said a council report showed Bendigo's other pools were past their asset life.
"Barnard Street is costing council almost $500,000 a year net and every time something needs to be fixed at Eaglehawk it is a large cost to ratepayers," he said.
"The city needs a new indoor facility and this project provides the greater Bendigo region with much more than a pool.
"Councillors have been given a report stating the city can afford it."
The council planned to contribute $10 million to the $30 million project.
Before going ahead with the commitment, Mayor Peter Cox said it was important for council not to land future Bendigo councils with unsustainable ongoing costs.
"We don't just accept state government funding on the basis that it will leave us in a worse financial state going forward," he said.
"We need to consider what the consequences will be for future councils.
"The new government is going to introduce rate capping, so large financial commitments like this need to be carefully considered."
The Federal Government had also yet to guarantee its contribution to the aquatic centre.
Cr Cox said if the Federal Government did not commit, then the project could need to be scaled back.
He said the Kangaroo Flat Community Enterprise were entitled to advocate on behalf of their community, and encouraged them to continue to do so.
"In the realm of the public debate, it's an important thing that we're not distracted from being a responsible local government," Cr Cox said.