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

Figure 16 Additional funding transferred <strong>to</strong> the works <strong>of</strong> direct community <strong>be</strong>nefit arising from
reductions in borrowings
$'000
Reduction in Borrowing Costs Allocated <strong>to</strong> Works <strong>of</strong> Direct Community Benefit each year until
2012/2013
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
If Council was <strong>to</strong> undertake additional borrowings <strong>to</strong> assist in the delivery <strong>of</strong> works
identified in this application, funding for capital works programmes/projects currently
funded under the framework <strong>of</strong> the organisation’s 10 year financial model will <strong>be</strong> adversely
affected.
As stated above, during the period 2001/02 <strong>to</strong> 2013/14, Council will transfer a <strong>to</strong>tal <strong>of</strong>
$23,265,000, <strong>be</strong>ing reductions in principal and interest loan repayments <strong>to</strong> capital works
programmes and projects. This amount is based on restricting 100% <strong>of</strong> accumulated
principal and interest loan repayment reductions from the base year <strong>of</strong> 2001/02.
Any decision <strong>to</strong> increase loans as a means <strong>of</strong> funding the environmental works identified in
this application will increase required principal and interest repayments in future years and
hence, reduce the commitment <strong>to</strong> associated programmes which are currently funded.
On the basis that works identified in this application will not generate any recurrent income
stream <strong>to</strong> Council, the organisations ability <strong>to</strong> fund capital programmes will actually <strong>be</strong>
reduced in real terms <strong>to</strong> the extent <strong>of</strong> interest repayments required in association with
undertaking additional borrowings.
Section 94 Income
For the 2005/2006 Financial Year Council’s Capital Works Programme will not <strong>be</strong> funded
by any Section 94 income.
Council has adopted a new Section 94 Plan, associated with recent gazettal <strong>of</strong> LEP 194. In
future years these funds will <strong>be</strong> applied <strong>to</strong> the following projects/programmes:
Construction <strong>of</strong> a Childcare Centre $3,500,000
Multipurpose Community Centre $5,800,000
Library Books $286,000
Park Acquisitions/Em<strong>be</strong>llishments $30,000,000
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