Mountain of debt: How Livingstone will reduce it
LIVINGSTONE Shire has a 10-year plan to shave $63.6 million off its mountain of debt and bring it much closer to ground level.
The plan of attack was revealed on Tuesday as Mayor Andy Ireland handed down his first budget.
Livingstone’s chief financial officer Andrea Ellis said the council’s total debt was forecast to decrease from about $75.5m at June 30 this year, to about $11.9m at the end of the 2030 financial year.
“No debt is budgeted to be borrowed, so no new borrowings, for the 20-21 financial year,” Ms Ellis said.
Ms Ellis also noted the council had identified alternative funding sources for its 20-21 capital works program which is set to deliver $41.5m in projects.
She was referring to the $22.5m that will be contributed as external funding from state and federal governments.
Ms Ellis said over the forecast 10-year period of Livingstone’s long-term financial plan, debt would only be used as a funding source once.
She said that would be in the 2024-25 financial year.
“That particular borrowing relates to 50 per cent of the capital cost of a new cell at the Yeppoon Landfill,” she said.
“So the more waste we divert from the existing cell, thereby extending its life, the less requirement there may need to be for those future loan borrowings.”
Ms Ellis said by the end of the current financial year, the council’s debt was projected to fall from $75.5m to $70.2m.
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