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@Oliver Schick
Interesting that they want you to apply for CGS funding. Essential maintenance (which this is, at least as far as I've understood the issues) should normally be funded from standard budgets, but I suppose that will have been pruned down by cuts.
The good news is that CSG offers the opportunity to think of other improvements that would help--anything that won't break the bank but whose absence has annoyed you for years--and that could feasibly be included in the funding.
Also, if you haven't done this already, make sure that you actually speak with the council officers who manage the park and the MUGA, as they'll have a wish list, too, and getting that into the bid, if it's not too much, would make it very likely to succeed as well as bdeing a good opportunity to work in partnership with them. If you're at all unsure whom to contact, the councillors will help you.