Local Government Finance Authority Loan Borrowing History
At the Meeting of Council held on 24 September 2025, Council's Administrators moved this information be provided to the community via Council's website in the Latest News Section. Select Agenda or Minutes to view the entire Meeting.
Background
The summary provided below has been compiled from information provided by the Local Government Finance Authority (LGFA). The summary commences from September 2015 to the last loan rollover in July 2025.
Borrowing History - The table below summaries the borrowing that took place commencing from September 2015 to July 2025:
2. Opening Balance of Council Borrowings – Commencing from September 2015, Council’s opening loan balance was $2.5m.
Additional Loans for working Capital - From August 2015 until September 2016 Council borrowed an additional $5.3m for working capital. In general, the term working capital is widely understood to mean cash available for operating purposes. In this 13-month period Council needed an additional $5.3m to cover operational expenditures.
Repayments of Loan Borrowings – In the past ten years Council, with the exception of one payment of $100,000, has not had the funds available to repay any of its loan borrowings.
Historical Indicators - This history of loan borrowings clearly indicates that as far back as September 2015 Council did not have sufficient funds to meet its operating costs. The Elected Council of the day endorsed the applications to the LGFA for additional borrowings and management made no other changes to the operations of Council.
Risk ManagementIf the LGFA does not continue to approve the rollover of Council’s current borrowings, then it would not be financially viable. Management believes this is a low risk due to the continued transparent communications with the LGFA.
Financial Implications
Council is continuing to apply to the LGFA to rollover the current borrowings until sufficient Cash is accumulated to start principal repayments.
Resolution
The Council notes the report titled “LGFA Loan Borrowing history” dated 24 September 2025 and requests the CEO place a summarised version of this information on the Council’s website in the Latest News section.
Carried Unanimously (819)