Bradford Council is demanding £35,000 back from two organisations that have failed to deliver projects in Silsden and Queensbury.
The authority wants Silsden Town Council to pay back £25,000 that was supposed to have been used for a police and community contact point in the town.
And Queensbury Sports and Social Club is being chased for £10,000 that was allocated for a new rugby pitch that has not come to fruition.
Silsden Town Council received the cash as part of proceeds generated by the sale of the town’s police station in 2005.
The intention was to transform Silsden Library in Wesley Place into a permanent police and community contact point. But the project faltered through lack of volunteers and potential refurbishment costs, and the money has since lain unused.
Steve Hartley, the Council’s interim strategic director for environment and sport, said: “The £25,000 was provided for a police contact point in Silsden. As the Town Council does not have any immediate plans to provide the contact point, Bradford Council has asked for the money back so it can progress the project.”
But town council chairman Councillor Chris Atkinson said the Council had not yet asked for the money back and the matter would likely go before the town council on May 8. He added: “Why do they want it back to start with? It is for the people of Silsden.
“If they are asking for it back, it will be on the agenda for the meeting.”
In June last year, the town council was given a 30-day deadline to draft a plan to spend the money on a community project or run the risk of forfeiting it.
The Queensbury cash came from Coun Paul Cromie (Ind) and his wife Coun Lynda Cromie from money given to ward councillors following the sale of Leeds-Bradford Airport.
Mr Hartley said: “We are seeking the return of the funding given to Queensbury Sports and Social Club because they have still not provided the rugby pitch for which the money was granted and it is unlikely to deliver the pitch in the foreseeable future. We are now at the start of the formal process to recover the money.”
Coun Paul Cromie said: “We could have used it to fund something else in Queensbury.”