Council will seek a $13 million loan under the NSW Government’s Low-Cost Loans Initiative, consistent with borrowing identified in MRC’s 10-year long-term financial plan.
The government initiative supports eligible regional councils by reimbursing up to half of eligible loan interest costs for projects that support housing growth.
Based on the government’s central borrowing authority TCorp’s indicative interest rate of 6.17 per cent over 20 years, MRC estimates total interest costs over the life of the loan to be about $9.72 million.
If the application is successful, as much as $4.86 million of those costs may be reimbursed.
Council will also have the opportunity to test the market for competitive financing options.
The submission of the application does not automatically mean council will enter into a loan agreement, with any further decisions to be made by council at a future meeting.
The motion supporting the application for the loan was moved by Cr Dennis Gleeson and seconded by Cr Kylie Berryman at the August 25 meeting.
Both said the project was much needed, but voiced concerns regarding the interest rate.
That sentiment was echoed by several other councillors, who indicated their willingness to investigate alternative lenders as soon as possible.
Successful applicants for this round of low-cost loans are expected to be announced in December.
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