2019-05-13 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                                               13 MAY 2019


Figure 2: Existing Loans
                                                                              Book         Expected Loan         Current Loan
               Account               Market Value            Balance
                                                                              Rate          Term (years)          Repayment
Noosa North Shore Campground                    252,432          248,185             3.47%           19.23                 8,810
Rufous Street Development                      1,825,949        1,815,447            3.31%             18.23              66,002
Noosa SC Capital Work Prog 15/16               1,227,735        1,243,852            3.04%             17.23              46,098
Shire Planning Scheme - Project                 802,694          794,201             3.12%             11.22              41,246
Shire Planning Scheme -Climate C                 98,490           97,448             3.12%             11.22               5,061
Noosa Planning Scheme 2016-17                   716,846          717,895             2.82%             10.22              39,639
Noosa SC Capital Work 14/15Waste                619,169          594,589             3.73%              8.22              40,887
Noosa SC Debt Account                      30,972,277          27,317,473            6.29%              7.22           2,280,568
Noosa SC Capital Work Prog 13/14               1,657,853        1,569,890            4.19%              7.22             122,072


As these existing loans are repaid over the next decade, a further $15 million of new borrowings
are forecast for major capital projects. As at April 2019, the interest rate for new QTC borrowings
was 2.7% for a 20 year term (or 2.3% for 10 years). The finance costs for any new loans is much
lower than that of Council’s existing loans.

Figure 3: Forecast New Loans

 $6,000,000


 $5,000,000


 $4,000,000


 $3,000,000


 $2,000,000


 $1,000,000


          $0
                     2019          2020               2021             2022       2023          2024              2025


Recommended Approach

The options for applying this surplus cash are summarised in the table below. It should be noted
that Council cannot apply cash reserves to fund operating initiatives given it would likely result in
an operating deficit and breach Council’s Financial Sustainability Policy.

Figure 4: Options for Applying Surplus Cash

Option                                    Advantage                                  Disadvantage
Continue to retain surplus cash                Buffer for emergent activities         Ineffective allocation of cash
for emergent events and major                    and projects (in addition to             if is surplus cash is not
projects / initiatives not yet                   cash cover and as an                     utilised in the future
identified                                       alternative to loans)




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