Council makes early repayment on $36-million debt
Published: 12 April 2017
Logan City Council yesterday reaffirmed its strong financial position with the early repayment of $36-million of debt.
City Treasurer Councillor Trevina Schwarz said Council’s long-term financial planning had identified cash that could be used to reduce debt and interest charged by the Queensland Treasury Corporation.
"Just like any household budget, if you have debt with interest rates that are higher than what you can earn in a savings account, and if you have cash that you do not need immediately, then you should try and get rid of that debt first. That is what Council is doing," Cr Schwarz said.
Cr Schwarz said the savings in interest would be incorporated into the forthcoming 2017-18 Budget in June.
Cr Schwarz said the recent flood throughout Logan presented some unforeseen costs, but Council remained financially sound.
“The flooding threw in some unexpected expenses, but we were ready – and we remain prepared for such events,” she said.
“Council is in a sound financial position and, if further unplanned circumstances arise, we will be able to access funding at the time."
The Queensland Audit Office has assessed Council as having a lower risk of financial sustainability concerns based on Council’s current income, expenditure, asset investment, and debt financing policies.
“Residents and businesses can be rest assured their city’s finances are in good hands,” Cr Schwarz said.