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CVC’s interest payments clarified

  In last week’s interview with Clarence Valley Council’s corporate director, Ashley Lindsay, the Independent asked the following question: Clarence Valley Council’s projected debt on loan borrowings is $129.75m, which is $44,230 a week in interest (or a total of $2.3million over the year – the principal component is another $5.8m for the year); how does CVC propose to get to the $110m max limit indicated by the Ernst and Young review? The original figures for this question were supplied by Cr Andrew Baker, who had calculated totals using documents tabled at the February council meeting. During the interview, Mr Lindsay supplied the figures quoted in the question; however, at last week’s budget community meeting in Grafton, Mr Lindsay said that the reference to the $2.3m was for the “general fund only”. Mr Lindsay has subsequently advised the Independent that next year’s “interest cost … is $8.487million, which is $163,000 a week” in interest repayments. However, it should be kept in mind that the interest and principal on loans outside of the general fund debt of $27.2million, such as the water and sewerage funds, are serviced via the collection of water and sewer charges, “because that’s where the majority of the debt lies”, Mr Lindsay said.