Goulburn Mulwaree Council wins against ratings agencies

Goulburn Mulwaree Council was one of two lead plaintiffs in a case against ratings agencies over two Commonwealth Bank investments.

The investments defaulted in the late 2000s, corporate and community services director Brendan Hollands said.

The case, in which a former council finance officer "was grilled in the witness stand for one and a half days," was finalised late last year. However the level of recouped funds was only announced this month.

"We've recouped 80 to 90 per cent of the loss on those two investments, which is fantastic," he told councillors at the most recent meeting.

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Total council investments stand at $91,766,515, according to a report.

Councillors will decide in coming weeks to how the $1.2m will be allocated.

Mr Hollands said two projects in the forward capital works - the proposed $9 million hockey complex at the Carr Confoy fields and the Goulburn to Crookwell rail trail were unfunded.

A total $19.48 million will be borrowed for works in 2019/20. This includes $6.3m for the Performing Arts Centre (PAC), $4.28m for Goulburn waste management centre improvements and $8.9m for the aquatic centre upgrade.

A report on efforts to trim the PAC's $18.5m cost will go to councillors in August.

Mr Hollands said the council would apply to the NSW Treasury (Tcorp) to borrow money at low interest - around 2pc - for the three projects.

He told councillors recently that this was the rate factored into the four-year management plan and it was looking "quite achievable." His comments followed recent discussions with the department.

"Hopefully we'll be able to borrow at that rate over the next 10 to 15 years," he said.

"We may even get it lower so in the next few months we'll prepare an application for the borrowings we have in the budget."

Costings on the PAC and the aquatic centre will be firmed up before the application is lodged. The latter is yet to go to tender.

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Tcorp was also requiring that the council review its investment policy and move away from non-rated Building Societies and Credit Unions in favour of the larger banks. This was necessary to qualify for the low-interest loans.

In recent months, general manager Warwick Bennett and Mayor Bob Kirk have also lobbied State Government Ministers to allow councils to borrow from its internal sewer fund for projects.

Mr Hollands said Goulburn Mulwaree had won approval to do so. A 2pc interest rate would apply and the money would be transferred to the general fund.

The money would be used for the Rocky Hill museum redevelopment, currently underway, but he said it was a potential source of funding for other projects, with Tcorp approval.

Mr Hollands said $8.3 million was also owing on the Highland Source pipeline, for which a $10 million loan was taken out last decade.

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