Draft Borrowing Policy to be reviewed by Council following community engagement.
In following best practice and having received some community feedback, Council is planning to adopt a Borrowing Policy. Engagement on the draft took place in February 2022 in preparation of final revisions ahead of the proposed Council Meetings date in March 2022.
The draft Borrowing Policy outlines the objectives, principles and process Council will be guided by when considering funding options. As stated in the draft policy, it is a requirement of the Local Government Act for any borrowings to be included in Council’s budget or revised budget.
To ensure Council has a structured and disciplined approach that fits within Council’s Financial Plan, borrowings will only be considered for the following projects:
* Council has obligations under a defined benefit superannuation scheme that may result in the need to make additional contributions to the scheme, matters relating to this potential obligation are outlined in Council’s Annual Report.
To give the community some context of the thresholds outlined in the policy the following graphic demonstrates how the ‘Loans and borrowings repayments compared to rates’ upper threshold of 10%, compares to Council’s forecast ratio over the term of the current Financial Plan.
*2025/26 includes a ‘one off’ repayment of an interest only loan. It is understood that over time there may be short periods of time where these thresholds are exceeded in managing Council’s financial position, but consistent results above these limits are not sustainable.
To make a submission or for more information, please email Jason Clissold – Executive Manager Financial Services on firstname.lastname@example.org.