Council's Draft Loan Borrowing Policy is currently on public exhibition for a period of 28 days from Tuesday 2 April until Tuesday 30 April 2024.
Council adopted its Resourcing Strategy 2023 – 2033 on 28 June 2023 which included proposed borrowings of $124.7 million.
The majority of these borrowings will be used to fund large scale Sewage Treatment Plant upgrades at Bowral, Moss Vale and Mittagong, with estimated borrowings of $112m to be funded from Council’s Water and Sewer fund.
This remainder will be used to fund or part-fund major building and infrastructure projects. To ensure an appropriate governance framework is in place, and to support Council’s position on utilising loan borrowings a review of Council’s Loan Borrowings Policy has been conducted.
WHAT IS THE DRAFT LOAN BORROWINGS POLICY OBJECTIVE?
The objectives of the Policy are:
- Complies with the Ministerial Revised Borrowing Order
- It undertaken with due regards for Council's role as custodian of public funds
- Is undertaken with care, diligence, and skill that a prudent person would exercise in managing the affair of other persons; and
- Complies with Council's overall risk management philosophy
WHAT PRINCIPLES HAVE BEEN CONSIDERED FOR THIS POLICY REVIEW?
- Borrowings may only be used to fund one-off capital expenditure and not operating expenditure (which should be funded from operating revenue). Recurrent capital works (which occur on an annual basis) should not be funded by loans and should be funded by operating revenue
- In considering loan borrowings, Council should ensure sufficient recurrent funding is available to service the debt. This should be achieved either through debt retirement, additional revenue or a reduction in operational expenditure
- It is appropriate to fund significant capital works via borrowings so that the full cost of infrastructure is not only borne by present day ratepayers, but also by future ratepayers who will benefit from the use of the funded infrastructure
- It may be appropriate to fund certain capital projects with user charges, in which case user charges should reflect the project’s costs, including loan payments
- The impact on Council’s budget of any movement in interest rates must be actively managed
- The term of any loan should not exceed the expected life of the asset being funded
WHEN IS THE EXHIBITION PERIOD?
The exhibition period will open Tuesday 2 April 2024 and close on Tuesday 30 April 2024 (total of 28 days).
HOW CAN I VIEW THE POLICY?
The Draft Loan Borrowings Policy and associated Council report may be viewed:
- Document library on this page
- Council’s Customer Service Counter, Civic Centre, 68 Elizabeth Street, Moss Vale NSW 2577, between 8.30am and 4.30pm Monday to Friday
HOW CAN I MAKE A SUBMISSION?
Written submissions may be:
- Submission Form (below)
- Emailed to mail@wsc.nsw.gov.au; or
- Hand delivered to Council's Civic Centre at the address provided above; or
- Posted to Wingecarribee Shire Council, PO Box 141, Moss Vale NSW 2577.
Your personal information contained in your submission is collected by Council for the purpose of corresponding with you about your submission. If you make an anonymous submission, Council will be unable to contact you further. A summary of the points made in your submission will be contained in the Council meetings business paper and made public on Council’s website.
FURTHER INFORMATION:
Only written submissions can be considered and these must be received by Council before 4.30pm on Tuesday 30 April 2024.
Please note that any submissions may be included in the report to Council.
NEXT STEPS:
Following the completion of the exhibition period, any submissions will be considered before the Policy is adopted by Council.
