Strategic Refinancing to Strengthen Financial Stability
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Published on Wednesday, 16 April 2025 at 2:34:58 PM
As part of efforts to improve the Shire of Coolgardie’s long-term financial sustainability, Council has undertaken a strategic refinancing of existing loans. This initiative is one of several proactive steps being taken to increase organisational cash flow, reduce financial pressure, and ensure responsible fiscal management.
The decision to refinance was made to take advantage of lower interest rates, extend loan terms to reduce monthly repayments, and implement interest-only periods that immediately boost available cash flow. This provides the Shire with greater financial flexibility to manage ongoing operations and support important community services.
Key refinancing activities included:
Refinancing a $12.5 million loan previously held with CBA over a 10-year term, incorporating a 3-year interest-only period followed by principle and interest repayments. Refinancing and increasing the ANZ loan from $8.5 million to $12.5 million, structured over 5 years as interest-only.The additional $4 million in borrowings is needed to repay a significant portion of the outstanding Creditors (including both local and external businesses) and to re-commence maintenance and projects.
As a result of these actions, the Shire is achieving annual savings of approximately $1.85 million across three of its major business units—Bluebush Village, the Coolgardie Waste Facility, and Kambalda Airport.
This refinancing forms a key part of the Shire’s broader financial recovery strategy, which is focused on improving cash flow and reducing liabilities.
Further details on the Shire’s refinancing strategy can be found in Agenda item 12.1.5 of the 25 March 2025 Ordinary Council Meeting. Visit https://www.coolgardie.wa.gov.au/council-meetings/
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To take advantage of lower interest rates, to extend the life of the loans reducing monthly repayments, and to enter into interest only periods to increase cash flow.
How much money is saved in refinancing?For the three major business units being the Blue Bush Accommodation Village, Coolgardie Waste Site and the Kambalda Airport, Council is saving approximately $1.85 million per annum.
What does this mean for the Shire Budget?Refinancing is an important step in improving the Shire’s end of year financial position. It will allow for increased activity to ensure we continue to meet normal operational requirements like building maintenance and finishing projects that, once complete, can generate income.
What does this mean for the community?This is one of many steps needed to improve the financial sustainability of the Shire. Refinancing helps increase cash flow into the organisation and lessens the negative impact of future rate increases for our ratepayers.
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