2021-02-15 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                              15 FEBRUARY 2021


    Proposed New Borrowings 2020/21: Two changes are required:
     o     Inclusion of a new loan for the capitalisation of ERA costs (approximately $2.9 million).
     o     Removal of the proposed $3.4 million in new loans for 2020/21 capital works based on
           revised works timing and available cash reserves.
    Proposed New Borrowings Future Years: This will be reassessed as part of the 2021/22
     budget process and capital works program.

It should be noted that these amounts may change depending on the date the refinancing
application is processed, movement in market interest rates and timing of loan repayments.

Previous Council Consideration
Ordinary Meeting Minutes, 17 December 2020, Item 3, Page 21
That Council note the report by the Director Corporate Services to the Services & Organisation
Committee Meeting dated 8 December 2020 and:
A.   Agree in principle to the 20 year fixed interest refinancing of Council’s current total debt
     balance at the latest applicable QTC borrowing rate;
B.   Agree to recapitalise the early repayment adjustment through the refinancing transaction to
     ensure cash reserves are maintained; and
C.   Authorise the Chief Executive Officer to submit an application by 26 February 2021 to the
     Department of State Development, Infrastructure, Local Government and Planning seeking
     borrowing approval for the refinancing transaction.

Special Meeting Minutes, 10 July 2020, Item 2, Page 3
That Council note the report by the Director Corporate Services to the Special Meeting dated 10
July 2020 and:
A.   Adopt the Financial Sustainability Policy, which is provided as Attachment 1 to the report;
B.   Pursuant to section 191 of the Local Government Regulation 2012, adopt for the 2020/21
     financial year the Investment of Surplus Funds Policy, which is provided as Attachment 2 to
     the report; and
C.   Pursuant to section 192 of the Local Government Regulation 2012, adopt for the 2020/21
     financial year the Debt Policy, which is provided as Attachment 3 to the report.

Finance
Council borrowing is effectively guaranteed by the State Government, and as such any borrowing
must be approved by the Minister for Local Government (in accordance with the Statutory Bodies
Financial Arrangements Act 1982).

Risks & Opportunities
Failure to effectively comply with legislation regarding the review, update and adoption of required
policies and new policies may compromise effective organisational governance and compromise
Council’s short and long term financial sustainability.

Consultation
External Consultation - Community & Stakeholder
Queensland Treasury Corporation.

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