A massive blowout in the cost of the Eurobodalla Sothern Water Storage Project.
A report to the council recommends they take out a loan for up to $40-million to cover the increased costs.
Eurobodalla Shire Mayor Matt Hatcher said there are several reasons for this including a major increase in the cost of a bio-diversity offset payment to the State Government for clearing a former State Forest for the project.
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This has ballooned to over $30-million from the original estimate of $3-million provided to them seven years ago.
He said rates will not go up as a result of any loan that is taken out to cover this additional cost.
A vote on the loan was deferred to the next meeting.
