Logan City Council to pay $36 million

CASH: Logan City Council will repay $36 million to the Queensland Treasury Corporation.
CASH: Logan City Council will repay $36 million to the Queensland Treasury Corporation.

Logan City Council has announced it will repay $36 million of its debt to the Queensland Treasury Corporation this financial year.

This repayment will reduce council’s current debt from $243 million to $207 million – a decrease of 14 per cent.

City Treasurer Cr Trevina Schwarz said council’s long-term financial planning had identified cash that could be used to reduce debt and interest charges.

“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,” she said. “That is what council is doing.”

Cr Schwartz said the repayment would return significant savings over coming years and was “a safe amount that council can put back into those loans,” she said.

“The impact on the 2017/18 budget will be that our interest bill reduces by $1.3 million.

“It will help keep rates increases to a bare minimum and open up further opportunities for additional infrastructure improvements.”

Cr Schwarz said the repayment decision reflected “council’s continued focus on strong financial management and long term financial sustainability”.

Cr Schwarz said the recent flood throughout Logan presented some unforeseen costs, but council remained financially sound.

“We were ready and we remain prepared for such events,” she said. “If further unplanned circumstances arise we will be able to access funding at the time.

“We have the disaster management fund ready and we will ensure repairs around the City of Logan will be completed.

“These repairs will not impact the repayment of debt.”