With the recent sale of MidCoast Council's Breese Parade Forster property, the funding strategy for the centralised administration and customer service centre is now complete, with sales realising more than anticipated, resulting in a reduction in debt and investment in the future.
The sale of the former administration and library building was the final part of the funding strategy that was endorsed by the elected Council to support the centralisation to Yalawanyi Ganya, Biripi Way Taree.
"The funding strategy involved the sale or lease of a number of Council properties," General Manager Adrian Panuccio explained.
The strategy outlined properties that were to be leased or sold with the funds going towards the purchase and fit out of Yalawanyi Ganya.
A report to the 21 August Council Meeting provided details on the sales achieved and how the funds raised had been used, in accordance with the adopted funding strategy.
"The strategy identified a number of properties to be sold with an estimated return of $6.57 million," Mr Panuccio said.
The total funds realised from the sales totalled $12.72 million, which was a more favourable outcome than expected and has had a positive impact on the funding strategy for the centralisation.
"With us realising $6.15 million more than the initial estimates through property sales, we have been able to reduce the amount of money that was borrowed to fund the project."
Mr Panuccio said that from 30 June 2025 the total loan on the building will be reduced to $6 million.
"This is a reasonable amount of debt to carry on a building that will provide services for many, many years to come."
The additional funds realised from the sales will also allow for some funds to be invested in Council's Future Land Development Reserve, which has been established to invest in properties which can deliver a sustainable commercial return to Council.
"Initially Council made a strategic decision to centralise Council's administrative offices into Taree.
"After the decision was made the financing strategy was executed, and we have exceeded our target. I am pleased we could deliver a better than estimated financial result."
