Loan Borrowing Policy
REM REFERENCE POLICY TYPE APPROVAL DATE ADOPTED DIRECTORATE POLICY OWNER NEXT REVIEW REVISION RECORD 23 September 2019
1.
A5745794 Council: adopted by Council resolution Council 20 April 2026 Corporate and Commercial Services Manager Financial and Integrated Planning VERSION 1.0 2.0
REVISION DESCRIPTION Initial Revised version
Purpose
The Loan Borrowing Policy provides the appropriate parameters for Council to undertake borrowings without compromising the application of sound fiscal management principals. The policy allows Council the flexibility to respond to funding requirements, while minimising risk. The Loan Borrowing Policy ensures that Council has a sound financial framework on which to:
Establish objectives and principles that outline when it is appropriate for Council to undertake external borrowings within a sound financial management framework.
Ensure Council keeps within the relevant borrowing limit as set by this policy.
Demonstrate that both short-term viability and long-term sustainability are not compromised.
Adhere to the provisions of the Local Government Act 2020 (Vic) (Act).
2.
Scope
This policy applies Council and all Council officers when considering and determining the annual budget or alongside another relevant Council decision. Council officers must consider the application of this policy when:
Preparing and determining the annual budget and 10-year financial plan.
Considering new borrowings.