Shire to borrow for capital works

By Justin Robertson
CARDINIA Shire Council has agreed to a proposal by Ranges Ward councillor Ed Chatwin to borrow $6 million to pay for part of the 2010-11 capital works program.
“Essentially, the catalyst for borrowing the money is to maintain the cash flow to pay creditors,” he said at council on Monday evening.
“They basically pay the bills for the various purchases we are making.”
The capital works program helps support local projects within the Cardinia community, such as the installation of a second bike path at Bayles Preschool and the installation of a new kitchen at the Toomuc Valley Residents Association.
The request for the loan has already been approved as part of the 2010-11 budget adopted by the council and approved by the State Government Loans Council.
Cr Chatwin said the borrowings could be used in the latter part of the financial year depending on council’s cash flow.
“We usually won’t borrow the money until we need it,” he said.
“But council and finance staff have been very conscious of maintaining a watchful eye on the cash flow so that we’ve never had to go into the overdraft.”
As soon as council gets the loan approved, Cr Chatwin said the money will simply be absorbed into more than 50 projects within the shire, such as continued work on the Holm Park Road recreation reserve complex at Beaconsfield, the Pakenham Library and Hall, the development of the Lang Lang bypass road, renewal of roads, bridges and buildings, footpaths and drainage replacement in the Cardinia Shire and continued work on the Cardinia Road Precinct Structure Plan. “It’s important that we spread that money around,” Cr Chatwin said.
“The sum we are seeking is simply absorbed into the cash flow – it’s not extra, it’s just an ongoing commitment.”