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Buloke Repays Loan

Publish Date: 13 November 2019

Buloke Shire Council earlier this month repaid the $7 million loan that was taken out in 2014.

Council resolved at a Special Meeting in May 2014 to participate in the first Local Government Funding Vehicle bond issuance for an interest only loan of $7 million dollars.

The five-year term of the loan applied a fixed interest rate and repayment of interest only over that term.

Financial Viability of Buloke Shire Council had become an area of significant attention during 2013/14. The material uncertainty of Council’s financial viability was raised by the Auditor General’s Office, Local Government Victoria and Council’s Audit Committee.

Since that period Council has implemented a number of initiatives, developments and strategies to mitigate Council’s financial risk and improve financial performance. This includes Council developing and adopting a 10 year long term financial plan, which guides Council on the path to financial sustainability.

“It’s a proud time for Buloke. The interest only loan was the backbone of Council’s resurgence to viability and to achieve the goal of repaying the loan in line with our budgets over that period and our Long Term Financial Plan is significant. Council can now continue to focus on our asset renewal gap and returning more funds to our capital budget in years to come”, said Mayor Cr Carolyn Stewart.

End release 
For further information contact Manager Customer Engagement, Travis Fitzgibbon on 03 5478 0181 or tfitzgibbon@buloke.vic.gov.au