Debt

Compared to numerous metropolitan Councils, the City of Burnside has a low level of debt relative to the value and number of its assets. Our current debt is projected to be $15.8m at the end of June 2021.

Sensible use of debt can help spread the cost of funding new and existing infrastructure over time, sharing the financial burden between current and future users – and spreading the cost of long lived assets across generations.

At the end of next year’s budget (June 2022) the projected debt will be $21.6m, as a result of investment in new and upgraded capital projects such as the Kensington Gardens Reserve Project and Magill Village Project. At the end of the 10-year LTFP, total debt is projected to be $30.3m (48.6 per cent of total revenue).

Total Debt to Income Ratio measures the total amount of debt as a percentage of Council’s Revenue. The upper limit for this ratio is 50 per cent and the draft Long Term Financial Plan shows that Council is projecting to maintain this ratio between 42.7 – 49.5 per cent of total revenue.

More detail can be found in the draft Long Term Financial Plan 2021/22 - 2030/31 in the Document Library above.