An independent assessment of Marrickville Council’s financial capacity has found that its financial performance, both current and projected, compares favourably when rated against a range of similar or ‘peer’ councils.
TCorp (NSW Treasury Corporation) made the assessment during the process of approving two low-interest rate loans that will address a backlog of infrastructure works in the local government area.
In the case of Marrickville Council, TCorp has recommended the loans for approval after it found Marrickville Council had the financial capacity to undertake additional borrowings.
“This is a highly positive independent appraisal of Marrickville Council’s financial position,” said the acting General Manager Neil Strickland. “Council aims to be financially viable and provide value for money in the delivery of its services.”
Mr Strickland went on to say that, “As well as delivering cost effective and affordable services to our local community, Marrickville Council is also determined to maintain Council’s long term financial viability and ensure Council’s assets are well-managed.
“TCorp’s assessment is a significant endorsement of Council’s financial position, both current and projected. It says that Marrickville Council is on the right fiscal path, and is a financially sustainable Council.”
Marrickville Council will spend $1.8 million on community facilities upgrades and $1.2 million on footpaths and roads during this and next financial year, now that the application to the NSW State Government Local Infrastructure Renewal Scheme (LIRS) has been approved.
The LIRS provides a four percent interest subsidy on loans raised by councils to fund legitimate infrastructure backlogs. The subsidy will substantially reduce Marrickville Council’s borrowing costs for infrastructure projects. Additionally, Council’s Operational Plan and Budget 2012-13 has allocated more than $20 million to important capital works.
“Maintaining footpaths and community facilities are a core part of Council’s everyday work,” Mr Strickland said. “These worthwhile projects will contribute to Marrickville’s well planned, sustainable and accessible environment.”
