2021-02-15 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA   15 FEBRUARY 2021




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GENERAL COMMITTEE MEETING AGENDA                                             15 FEBRUARY 2021

       13.2 The term of any internal loan will be appropriate to the life of the infrastructure / asset
            being financed.
       13.3 The interest rate will be the sum of
            (a)   the equivalent QTC borrowing rate for the proposed term;
            (b)   the QTC administration charge; and
            (c)   an additional margin above the QTC borrowing rate.
            In all cases, where business activities are subject to the provisions of the National
            Competition Policy, the cost to the business will be no less than what would apply to an
            equivalent private sector business.
       13.4 Provision for the repayment of an internal loan will be included in the annual budget for
            the business or operational activity.
 GUIDING PRINCIPLES
 The purpose of establishing a Debt Policy is to:
 .     Provide a comprehensive view of Council's long term debt position and the capacity to fund
       infrastructure growth for the Shire;
 .     Increase awareness of issues concerning debt management;
 .     Enhance the understanding between Councillors, community groups and Council staff by
      documenting policies and guidelines;
 .     Demonstrate to government and lending institutions that Council has a disciplined approach to
       borrowing.
 ROLES AND RESPONSIBILITIES
 Pursuant to section 192 of the Local Government Regulation 2012 detail of the proposed borrowing
 for the current year and the future 9 years will be prepared annually as part of the budget process.
 Applications outlining proposed borrowings will be forwarded to the Minister for Local Government for
 approval.
 Periodic Credit Reviews will be undertaken by the QTC on behalf of the Minister for Local
 Government.
 Loan proceeds will be drawn down subject to cash flow requirements annually so as to minimise
 interest expenses.
 All lease proposals will be referred to Financial Services for evaluation to assess alternatives for
 funding asset acquisition and to ensure statutory compliance.
 MEASUREMENT OF SUCCESS
 Financial sustainability indicators remain within target ranges and the provision of necessary
 infrastructure is not constrained through the lack of capital funding.
 Details of outstanding loans will be reported annually in Council's Financial Statements and Annual
 Report.
 DEFINITIONS
 Business Activity — A Council activity subject to the application of full cost pricing principles as
 defined in the Local Government Act 2009 and Local Government Regulation 2012.
 Inter-generational equity — This relates to the fairness of the distribution of the costs and benefits of
 a policy when costs and benefits are borne by different generations. (i.e. the principle whereby those
 who derive a direct benefit from the service or infrastructure provided actually pay for that service).

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