ordinary meeting of council to be held on tuesday, 26 april 2005 at ...

Ku-ring-gai Council
Draft Management Plan 2005-2009
STATEMENT OF PROPOSED BORROWINGS
Council may only borrow funds in accordance with legislative restrictions on borrowing
limits, and terms and conditions as determined by the Department <strong>of</strong> Local Government.
Council makes a submission and seeks approval for borrowing limits on an annual
basis.
Council considers that the maintenance <strong>of</strong> existing infrastructure assets should <strong>be</strong>
funded from operating revenue and that loan funds are only <strong>to</strong> <strong>be</strong> utilised for the
following purposes:
Infrastructure refurbishment programs.
To purchase or build a major new asset, where full funding costs can <strong>be</strong> recovered
over the life <strong>of</strong> the asset.
To buy an asset or establish a service which will decrease costs <strong>of</strong> service delivery
or generate income and is justifiable in economic terms.
In an emergency.
Once approval <strong>of</strong> Council’s general borrowing limit is advised by the Department <strong>of</strong>
Local Government, submissions will <strong>be</strong> invited from financial institutions <strong>to</strong> provide the
required borrowings.
Council complies with the provisions <strong>of</strong> Section 623 <strong>of</strong> the Local Government Act
(1993) and clause 23 <strong>of</strong> the Financial Management Regulations, in that any funds
borrowed by Council will <strong>be</strong> secured by a charge over Council’s General Fund income.
Council will need a moderate borrowing program <strong>to</strong> continue <strong>to</strong> commit funding <strong>to</strong>
asset refurbishment.
Accordingly, the proposed new borrowings, principal repayments and net repayments
proposed over the term <strong>of</strong> the plan are:
Financial Year
Proposed
Borrowings
Principal
Repayments
Net Repayments
2005/2006 $1,400,000 $1,538,500 $138,500
2006/2007 $1,000,000 $1,706,500 $706,500
2007/2008 $1,000,000 $1,856,700 $856,700
2008/2009 $1,000,000 $1,877,300 $877,300
TOTAL $4,400,000 $6,979,000 $2,579,000
Over the term <strong>of</strong> this Management Plan, Council will reduce “net debt” by $2,579,000.
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