Borrowings history
During the 2012–13 financial year, we borrowed $29 million to fund major building works. The borrowings were at a fixed interest rate for 10 years and we were due to repay this in full in 2022–23. However, during the 2022–23 financial year, we reviewed our existing loan portfolio and refinanced the rest of this loan for another 10 years.
We expect to repay all existing borrowings by 2033.
Existing borrowings
During the 2022–23 year, we made $25.91 million in principal repayments on existing borrowings. This means that on 30 June 2023, our total borrowings will be $85.33 million. The projected cost of servicing these borrowings is $8.12 million during 2023–24.
Future borrowing strategy
Our borrowing strategy is to pay off existing debt over time so that we can look at new borrowings for significant infrastructure projects for the community. This strategy allows us to invest in new infrastructure while paying off our debts.
We will look at different borrowing strategies for each area of planned borrowings as they become due.
Future proposed borrowings
The following table sets out our future proposed borrowings, based on our forecast position on 30 June 2023.
| Financial year ending | New borrowings | Principal paid | Interest expense | Balance 30 June |
|---|---|---|---|---|
| 2023 | 19,700,000 | 25,907,000 | 3,952,000 | 85,333,000 |
| 2024 | – | 8,117,000 | 3,408,000 | 77,216,000 |
| 2025 | – | 8,460,000 | 3,063,000 | 68,755,000 |
| 2026 | – | 8,819,000 | 2,703,000 | 59,936,000 |
| 2027 | – | 8,659,000 | 2,353,000 | 51,277,000 |
| 2028 | – | 9,015,000 | 1,996,000 | 42,262,000 |
| 2029 | – | 9,386,000 | 1,625,000 | 32,876,000 |
| 2030 | – | 9,773,000 | 1,239,000 | 23,103,000 |
| 2031 | – | 10,175,000 | 836,000 | 12,928,000 |
| 2032 | – | 10,594,000 | 417,000 | 2,334,000 |
| 2033 | – | 2,334,000 | 69,000 | – |
| Total | 19,700,000 | 111,239,000 | 21,661,000 | – |
Statement of borrowings
| Indicator | Forecast Actual 2022–23 | Budget 2023–24 |
|---|---|---|
| Total amount borrowed as at 30 June of the prior year | $91,540,000 | $85,333,000 |
| Total amount to be borrowed | $19,700,000 | $0 |
| Total amount projected to be redeemed | – $25,907,000 | – $8,117,000 |
| Amount of borrowings 30 June | $85,333,000 | $77,216,000 |