2020-12-08 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                 8 DECEMBER 2020


Finance
Any decision to agree to a refinancing transaction under either scenario will provide an opportunity
to free up additional cash flows through reduced loan repayments that can potentially be utilised
to stimulate the local economy via capital investment and / or assist with Council’s short term
financial recovery strategy.

Given the inherent uncertainty regarding the global and local economic environment over the short
to medium term and implications for Council’s financial recovery plan and broader financial
sustainability, the option to recapitalise the ERA and pay off over a 20 year term is recommended
and will ensure that cash reserves can be retained and used as required to mitigate any short term
financial sustainability pressures that may arise.

Risks & Opportunities
Risks

Any future Council decision making to deviate from the current 10 year financial plan forecasts will
require plan rework to ensure any financial sustainability risks are identified and managed.

Opportunities

1.      The debt refinancing investigation shows that the average interest rate on current debt
        holdings can be reduced from 5.42% down below 2%, resulting in a significant annual saving
        for ratepayers.

2.      The Queensland Government local government debt refinancing program will allow Council
        to refinance its current debt portfolio without requiring an ERA to be paid from existing cash
        reserves.


Consultation
External Consultation - Community & Stakeholder
Queensland Treasury Corporation
Financial Services Manager

Internal Consultation
Nil

Departments/Sections Consulted:

      Chief Executive Officer     Community Services                      X   Corporate Services
      Executive Officer           Director                                x   Director
      Executive Support           Community Development                   x   Financial Services
                                  Community Facilities                        ICT
                                  Libraries & Galleries                       Procurement & Fleet
                                  Local Laws                                  Property
                                  Waste & Environmental Health                Revenue Services

      Executive Services          Environment & Sustainable Development       Infrastructure Services
      Director                    Director                                    Director
      Community Engagement        Building & Plumbing Services                Asset Management
      Customer Service            Development Assessment                      Buildings and Facilities
      Governance                  Economic Development                        Civil Operations
      People and Culture          Environmental Services                      Disaster Management
                                  Strategic Land Use Planning                 Infrastructure Planning,
                                                                              Design and Delivery



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