Vale of Glamorgan Council’s borrowing costs could go up by more than £160,000 a year for the next 50 years in order to cover payments for the construction of a new school.
Cabinet members were told on Thursday that it will cost £63.9 millon to build a new home for St Richard Gwyn Catholic High School in Barry.
The estimated cost of the project originally stood at £59 million.
Most of the money will come from various grants and Welsh Government funding, but £3 million will have to be borrowed by the county council.
Cllr Rhiannon Birch, cabinet member for education, said: “This is over the £59m construction costs we’d anticipated, but there is opportunity to bring the figure down when undertaking value engineering through project delivery."
“Morgan Sindall will competitively tender the scheme to their supply chain once the design is fully complete."
“Once this stage 4 design has been completed, they will be then in a position to receive accurate prices from their supply chain."
“As we all know, all supplies…building materials and even the cost of importing them and paying workers or skilled workers is increasing all the time.”
Last May, the council invited tenders for the construction of the new St Richard Gwyn school.
Morgan Sindall, who won the contract, provided the council with the second stage proposal which includes the costs for all the work needed to be done as part of the project.
They issued the tender to subcontractors and the total for all the work needed that came back from these was £63.9 million.
The financial commitment that will need to come from the council adds up to £8.987 million, but £5 million of this will be in the form of a net zero carbon grant that’s 100% funded by the Welsh Government.
Borrowing would result in a total revenue repayment of about £162,000 per year for the next fifty years.
Cllr Birch said there is no financial commitment from the council at the moment.
The cabinet agreed to allow a full business case for the new high school development to be submitted to the Welsh Government by Friday.
Sir Richard Gwyn High School is the final school earmarked for development under the council’s 21st Century Schools Programme.
Council leader Lis Burnett said: “Whenever we’ve opened a new school, we have always wanted to say to children that they are worth every pound that we spend on their new school and we hope it is an investment in their future."
She added there was a big discussion on the school and whether the local authority should put off its redevelopment until it could be afforded.
Cllr Burnett added: “We felt that this was our final secondary school to renew in just over ten years and we felt it had to go forward."
“We hope the people of the Vale will agree that an investment of £162,000 a year for the next 50 years is just what these children are worth.”
47 cases in cryptosporidium outbreak
Calls to turn old harbour into nature reserve
Top fitness award for Barry gym owner
New local food directory unveiled
Freedom of Barry for Hutt and William
Mental health service to close as funding pulled
Ministers considers abandoning ‘ill-advised’ cancer target
Work progressing on Channel View flats
Work planned for Culverhouse Cross roundabout
Cryptosporidium: 28 cases linked to Cowbridge farm shop
Rural Oscar for Rhoose post office
More summer routes for Cardiff Airport
A48: ministers face calls for 'urgent' review'
Council shakes up scrutiny committees
Dow job losses "extremely disappointing"
Welsh Government sets out plans for new laws
FM under fire over Port Talbot "betrayal"
CCTV released in search for Noah
