Spot us another $100M, Council

Pictured: Rik Hart (left) and Dick Persson

Central Coast Council has taken out another loan – this time for $100M – as it continues to work through mitigation measures for its cash crisis.

This latest loan sees Council’s total borrowings for the year reach $200M, with a $50M loan taken out with NAB in May to be repaid over 20 years, and another $50Mborrowedfromanunnamed financial institution in November – a principle and interest loan with a fixed five-year term amortised over 15 years.

The latest loan was approved at an extraordinary meeting on December 18 and is a fixed three- year loan amortising over 15 years.

Details of the loan were discussed in closed session and remain commercial-in- confidence.

A Council spokesperson said the loan will assist Council with a positive budget for the next financial year and long term 10-year financial plan.
Council resolved at the December 18 meeting to authorise Administrator Dick Persson and Acting Chief Executive Officer Rik Hart to execute all documents relating to the facility agreement between Council and the financial institution.

The Council also resolved that the report should remain confidential in accordance with section 10A(2)(d)(i) of the Local Government Act as it “contains commercial information of a confidential nature that would, if disclosed, prejudice the commercial position of the person who supplied it”.

The minutes also say that consideration of the matter in open Council would, on balance, be contrary to the public interest as publication of all tendered amounts would discourage potential tenderers from submitting commercial information in future.

Meanwhile, Council continues its path to financial recovery and sustainability under its business recovery plan, the spokesperson said.

Reductions have been made in the capital works program, sales of assets are underway, an employee savings target has been set and a voluntary redundancy program has commenced, as well as notification to IPART for a special rate variation of 15 per cent.

CCN report