Borrowings

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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 2023–24 year, we made $8.12 million in principal repayments on existing borrowings. This means that on 30 June 2024, our total borrowings will be $77.22 million. The projected cost of servicing these borrowings is $8.46 million during 2024–25.

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 2024.

Financial year ending	Principal paid	Interest expense	Balance 30 June
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	0
2034	0	0	0
Total	85,332,000	17,709,000

Statement of borrowings

Indicator	Forecast Actual 2023–24	Budget 2024–25
Total amount borrowed as at 30 June of the prior year	85,333,000	77,216,000
Total amount to be borrowed	0	0
Total amount projected to be redeemed	8,117,000	8,460,000
Amount of borrowings 30 June	77,216,000	68,756,000