Council property will top up reservoir cash
COUNCIL will auction two properties to partially fund its $1.7 million contribution to the new Port Douglas reservoir.
The sale of the two properties – a two-bedroom house at 44 Pringle St in Mossman and a vacant residential lot at 17-21 Dickson St, Craiglie – will partially fund Council’s contribution to the Port Douglas reservoir.
The remainder of Council’s financial contribution to the new $13.5 million Port Douglas reservoir will be funded by cash held in investments.
Mayor Julia Leu said Council had undertaken a process to identify freehold land assets that are currently surplus to Council’s requirements.
At this stage these landholdings will be retained to maximise value and depending on Council’s future requirements, these assets may be sold incrementally to fund future capital projects.
“Douglas Shire Council has recently become debt-free with the repayment of all outstanding loans to Queensland Treasury Corporation and our preferred strategy is to fund major infrastructure projects moving forward from our own resources,” Mayor Leu said.
“This will achieve a much better outcome financially for ratepayers and the land identified as suitable for sale are currently surplus to requirements.
“Council has no intention or need to raise substantial funds with a wholesale sell-off of surplus land assets, they are growing in value due to an improving property market..
“But where we need to fund new major infrastructure projects, it makes good financial sense to generate revenue with strategic land sales in the right circumstances rather than through borrowings with interest repayments over many years.
“This approach fits in with Council’s long-term financial plan to achieve a balanced budget by the 2019/20 financial year with limited or no outstanding debts.”
Council will follow a standard procurement process and these two identified properties will be advertised for sale in the coming months.
The house in Pringle St