Low Cost Loans Initiative
Published: 18 Oct 2019 3:29pm
Wagga Wagga City Council has welcomed a successful application to secure funds for a number of projects across the city through the New South Wales Government’s Low Cost Loans Initiative.
The initiative is designed to assist growing councils across the State deliver new infrastructure to cater for increased housing supply by refunding 50 percent of the interest paid on loans approved by the scheme.
“This is a very positive program that will improve Wagga Wagga City Council’s ability to develop the infrastructure needed to support growth,” Council’s Director Corporate Services Natalie Te Pohe.
“We’re projecting the city’s population will grow to 100,000 by 2038. As a council we need to be able to keep up.
“This is another valuable mechanism to help us achieve that goal.”
Wagga City Council is one of five councils set to share in $5M in interest subsidies provided through the initiative, with the city’s return estimated at $610,000.
Under the Low Cost Loans Initiative, Wagga City Council will borrow $3M for Infrastructure Projects, $3.9M for Recreation Projects and $2M for Utilities Projects.
The interest costs would have totalled $1.2M if Wagga City Council hadn’t secured the Low Cost Loans subsidy.
“The additional benefit is that Council can earn interest by retaining its own funds and generate an additional $400,000,” Ms Te Pohe said.
“The overall benefit of this initiative is potentially $1M for Council to then allocate to additional projects or programs that benefit the community.”
The Infrastructure Projects cover major road works to support growing residential areas, including the Gregadoo Road corridor, while Recreation Projects include some of the city’s most highly awaited developments such as Riverside and the Multisport Cycling Complex at Pomingalarna Reserve, along with works in Ladysmith and Tarcutta.
“Projects like the Multisport Cycling Complex and Riverside were among the big ones that we were applying to utilise the subsidy and it is positive that we could also utilise this program to support our villages,” Ms Te Pohe said.
“Essentially, we’ve now got $8.9M in loans that we can look to take out borrowing for, but these projects total significantly more than this amount.
“These Low Cost Loans will only form one funding source for many of these projects including Pomingalarna and Riverside, which will be heavily grant funded.”