Below is the reply I received to my FoI request, you may make of it what you will!
1. Discussions have since taken place with the Friends of Happy Valley who are working with Conwy County Borough Council to actively investigate sources of external funding to pay for the renovation works.
2. Happy Valley is currently under a 5 year management plan. This management plan began in 2009 at which point discussions regarding the rill took place. It was agreed that the renovation of the rill pond and marginal area be included as a long term objective in the plan with a deadline of completion by the end of 2014.
3. The main reason for delaying the restoration of the feature is lack of available finance. In addition the water feature provides a habitat for reptiles and amphibians including common lizard, palmate newt and common toad. Care needs to be taken to avoid causing damage to the amphibian populations and any maintenance, such as cleaning, needs to be carried out sensitively.