Attached is a link to the annual Proposed Borrowing Return and a reminder of the borrowing reporting requirements for Councils.
New money borrowings are broadly defined to include the whole range of financing arrangements available to local councils, county councils and joint organisations (JOs). These include conventional loans, deferred payment arrangements, finance leases and any other forms of raising new capital funds.
A council’s proposed borrowing amount must be contained in its 2025-26 Operational Plan. A JO must contain its proposed borrowings in its annual Statement of Revenue Policy.
The 2025-26 return requires a breakdown of projects, as well as total estimates of borrowings for the next three years.
Councils and JOs are required to advise the Deputy Secretary, Local Government, of amounts borrowed at the time loans are taken out in accordance with clause 230 of the Local Government (General) Regulation 2021. Notification can be emailed to finance@olg.nsw.gov.au.
Where there is an increase in borrowings during the financial year, not included in the original return, the council/JO should advise OLG by resubmitting the Borrowing Return with an additional comment on the purpose of the increased borrowings. The additional borrowings are to be resolved by council/JO prior to resubmitting.
Internal loans from internally allocated funds are not required to be included in the “requested borrowing” return. Section 410 of the Local Government Act 1993 stipulates that the use of funds raised for special rates or charges can only be utilised following Ministerial approval. Councils should contact the Performance Team if they are considering an internal loan from externally restricted funds.
The Proposed Borrowings 2025-26 data collection form should be returned to TCorp on or before Monday 7 July 2025 in the excel format (there will be no acknowledgement receipt) to lgs@tcorp.nsw.gov.au. The data collection form is included with this message and can be accessed via the Council Portal section, Council surveys and data returns on the OLG website at https://www.olg.nsw.gov.au/council-portal/
Any correspondence regarding loans, other than submitting the return, should be emailed to finance@olg.nsw.gov.au.
If a return is not provided to TCorp by the due date, it will be assumed that the council does not propose to borrow during 2025-26.
Any enquiries regarding the content of the return can be directed to the Performance Team on (02) 4428 4100.