Published on 21 March 2022
A new low-interest loan type has been accessed by Mansfield Shire Council to fund the Heavy Vehicle Alternative Route.
Traditionally, Council has sourced loan funds from major Australian financial institutions. The Victorian Government has now authorised Councils to directly loan from the Treasury Corporation of Australia (TCV), the Victorian Government’s central financing authority. Borrowing from the TCV instead of a major financial institution allows Council to access funds at a much lower rate than would be possible through commercial lenders.
Council’s 2021/22 budget included a provision to borrow $2.6m to fund capital works projects related to the Heavy Vehicle Alternative Route. The loan is part of Council’s long term financial plan and future interest and principal payments are included in that plan.
Mayor Cr James Tehan said the loan was a strategic use of cost-effective debt.
“The new loan type allows us to achieve cost savings as we finance the creation of new assets and infrastructure, such as the Heavy Vehicle Alternative Route,” said Cr Tehan.
“Council is delivering on major projects and we need to ensure we grow in a financially sustainable way. We’re pleased with the way this loan optimises the costs of delivering services and ensures we remain in a strong financial position.”
The Heavy Vehicle Alternative Route will enable heavy vehicles to bypass the central business district of Mansfield township by following a route along Withers Lane to Dead House Lane and then Greenvale Lane.
The Heavy Vehicle Alternative Route is jointly funded by the Australian Government and Mansfield Shire Council. The loan was included in community consultation that was part of Council’s preparation of its long-term financial plan and budget.