Coun­cil prop­erty will top up reser­voir cash

Port Douglas & Mossman Gazette - - NEWS -

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

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