On Monday night the Minister for Local Government Paul Toole signed off on a $1.2 million application from Tenterfield Shire Council to go towards the Rouse Street works.

However, the application was put forward by council in December 2013 and the main street works have since been completed.

“We’ll need to consider whether to take up the offer,” Tenterfield Shire mayor Peter Petty said.

“It will go to council and we’ll need to decide – if we had sat here waiting we’d still be here but we got on with it.

“It’s a bit of a cloudy one – we’ll have to work it out,” he said.

Cr Petty said they would need to explore whether the money could be used for any other projects instead.

The million dollar loan subsidy was divvied up from the NSW Government’s Local Infrastructure Renewal Scheme (LIRS).

Under the third round, councils are provided with a three per cent interest subsidy for up to 10 years on loans.

It is estimated that the three per cent subsidy will save Tenterfield Shire Council more than $205,000 over the life of the loan – if they opt to take it up.

In a joint statement, MPs Adam Marshall and Thomas George welcomed the loan.

“The application from Tenterfield Shire Council will see $1.2 million spent on the Rouse Street Renewal project which includes improvements to key roads and public amenities,” Mr Marshall said.

Council had initially set a five-year plan but the works ended up taking approximately six months to complete and were fully grant funded.

“It’s good news there is money there if we decide it is needed,” Cr Petty said.

UPDATE: Tenterfield Shire Council general manager Lotta Jackson has quelled confusion over the monies saying they have been set aside for town square works.

"This is the loan that is in council’s budget with $750,000 set aside for the Bruxner Park and Town Square development this financial year.

"Had council not applied for, and received this lower interest loan, we would have had to borrow form a bank at a higher cost," the GM said.

More to follow...