Annual Report 2021-22

Noosa Council
Notes to the Financial Statements
for the year ended 30 June 2022

Note 20. Borrowings
§Note/Subtotal§
§Subnote§




Loans payable are measured at amortised cost using the effective interest rate method. The effective interest rate is the
rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument.
Borrowing costs, which includes interest calculated using the effective interest method and administration fees, are expensed
in the period in which they arise. Costs that are not settled in the period in which they arise are added to the carrying amount
of the borrowing.

All borrowing costs are expensed in the period in which they are incurred.

Borrowings are classified as current liabilities unless Council has an unconditional right to defer settlement of the liability for
at least 12 months after the balance date.

Council adopts an annual debt policy that sets out council's management of existing and future debt. Council's current policy is
to only borrow for capital projects and for a term no longer than the expected life of the asset. Council also aims to comply with
the Queensland Treasury Corporation's borrowing guidelines and ensure that sustainability indicators remain within acceptable
levels at all times.

$ '000                                                                                                     2022                 2021

Current
Loans - Queensland Treasury Corporation                                                                    1,186                 955
Total Current Borrowings                                                                                 1,186                  955
Non-Current
Loans - Queensland Treasury Corporation                                                                  24,114               20,258
Total Non-Current Borrowings                                                                            24,114              20,258

Reconciliation of Loan Movements for the year

Loans - Queensland Treasury Corporation
Opening balance at beginning of financial year                                                           21,213               21,516
Loans raised                                                                                               4,859              21,082
Principal repayments                                                                                     (1,299)            (24,843)
Loan Interest capitalised in period                                                                          527               3,458
Book Value at end of Financial Year                                                                      25,300               21,213

The QTC loan market value at the reporting date was $22,145,160 (2021: $21,732,591). This represents the value of the debt
if Council repaid it at that date. As it is the intention of Council to hold the debt for its term, no provision is required to be made
in these accounts. No assets have been pledged as security by the council for any liabilities.

During the year Council drew down $4,859,000 from its QTC loan facility to fund the construction of the Noosaville Eumundi
Road Landfill Cell Expansion. This loan drawdown was over a 20 year term with a fixed interest rate of 4.275%

Borrowings are all in $AUD and are underwritten by the Queensland State Government.




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