The Long Term Financial Strategy and our
Financial Planning and Sustainability Policy recognises debt as an important source of funds for large capital projects. Council currently has no borrowings.
Over the next ten years, debt will be an important funding source to deliver community projects. Council has commenced construction of the renewal of access roads at the Kimbriki Waste Landfill site. It is anticipated that the renewal of the access roads will cost $12.5m. Council is planning to borrow $7.815m for the Local Infrastructure Renewal Scheme (LIRS) component of the project and is proposing to borrow for the remaining component of the works in 2015/16 in order to maintain financial sustainability over the 10 years of the Long Term Financial Plan. If Council has not executed the borrowings for the LIRS Component of the project in 2015/16 then borrowings of $12.5m will be undertaken in 2016/17.
Council will continue to review the need to borrow for major infrastructure projects. Spreading these costs over a number of years facilitates inter-generational equity and smooths out long term expenditure peaks and troughs.