Loan Borrowings Policy

The Loan Borrowings Policy was adopted by Council on the 23 May 2018.

The objectives of this policy are to: 

Ensure that the use and management of Council borrowings:

  • Complies with the Ministerial Revised Borrowing Order dated 13 May 2009;
  • Is undertaken with due regard for Council’s role as a custodian of public funds;
  • Is undertaken with the care, diligence and skill that a prudent person would exercise in managing the affairs of other persons; and
  • Complies with Council’s overall risk management philosophy.

Council’s power to borrow funds arises from Section 621 of the Local Government Act 1993. As a custodian of public funds, Council must exercise the reasonable care and diligence that a prudent person would exercise when borrowing funds.

Council recognises that loan borrowings for infrastructure are an important funding source for local government and that the full cost of funding infrastructure works should not be borne entirely on present-day ratepayers, but also future ratepayers who will also benefit from the use of the funded infrastructure.

This policy provides a framework for Council to borrow funds while ensuring the ongoing financial viability of Council; by not permitting overall borrowings to extend Council beyond its ability to meet future repayments and budgetary obligations.

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