By DANIEL TRAN
GREATER Dandenong council expects to return to “acceptable” debt
levels in five years, after revealing it borrowed $33 million in 2012-13
to fund its new municipal building.
The council revealed that as of last month, it owes $65.887
million. It will borrow a further $6.748 million this financial year to
fund the municipal building. It will also borrow $1.848 million to
subsidise a shortfall for a scheme that entitled public-sector employees
to a pre-determined pension on retirement.
The loan will see the council’s interest repayments increase from $2.836 million to $3.492 million by 2017-18.
Greater Dandenong’s chief executive, John Bennie, said the council
had known it needed to borrow extensively to build the new municipal
building.
“Part of the delivery of that project would require the level of
acceptable indebtedness to rise to a maximum level,” he said. “The
council … does all of this in the context of a long-term financial
strategy.
