Council borrowings - what you didn't know ...
Did you know that Toowoomba City Council borrowings for the 2004/5 financial year were $50,788,000?
Interestingly, for 2005-6, there are two line items:
- $500,000 - Bridge Street Quarry Gardens - 20 year term
- $1,000,000 - Bridge Street Quarry Gardens - 20 year term.
So Council has allocated $1.5 million of its debt to the 'white elephant' Quarry Gardens project.
What happens if this project never goes forward - what happens to the debt?
Also of interest, Council indicates that the Water Futures project will increase Council debt by $38 million (based on a total project cost of $112 million).
So Council debt will increase to over $88 million (excluding any other debt assumed by the Council related to other activities).
That's an increase in debt of over 75%.
Council's debt servicing ratio for 2004/5 (i.e. the ability of Council to service its debt from revenue) was 9.64%.
Expect a significant increase in the amount of your rates dollars which goes to service Council debt ...
posted by Concerned Ratepayer at 8:00 AM
2 Comments:
What happens when the alternate RO waste stream solution is needed? Figure on adding another $70 million to Council debt unless they can get the State or Feds to chip in. This council is going to fall over under the weight of the debt in future years.
11:13 AM, April 17, 2006
Future Council's will have to put money aside as and mark these words there will be liability suits against them because of the drinking of recycled sewage water
12:29 PM, April 23, 2006
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