EXPLAINED: How council will pay back airport expansion debt

A Sunshine Coast councillor has sought to bust myths around a council “debt bomb” by clarifying a repayment plan for the international airport project.

SUNSHINE Coast Airport Control Group chairman Tim Dwyer has sought to bust myths around a council "debt bomb" by clarifying repayment plan for the international airport project.

The deputy mayor explained council stood to make profit off the its deal with its commercial operating partner Palisade, which would see them ultimately repay $372 million total by 2022 for the $334 million project under way in Marcoola.

His comments during council's last ordinary meeting on Thursday, and on top of that, Cr Dwyer told the Daily council would receive 5 per cent royalty annually for the 99-year lease.

"To date, Palisade as per the contract … has already paid an amount of $67 million," he said.

"And by agreement with council, there was a $15 million deferred for the initial payment, which will be picked up when they pay the $290 million in 2022.

"That takes the total amount of $305 million and $67 million already paid, to $372 million total by 2022."

Cr Dwyer, who also holds the corporate strategy finance portfolio, took to the floor in council's Caloundra chambers to comment on the February Financial Performance Report.

He said while people today may not think projects such as these are a "good idea today", councillors job was to implement "prudent financial planning" and create a legacy for 10, 15 and 20 years down the track.

Cr Dwyer said once the airport debt had been repaid he hoped council's Queensland Treasury Corporation financial rating would return from a "strong and negative" position to a "strong and neutral position". He said Sunshine Coast Council was one of three local government in Australia with a "strong" rating.

In presenting the report, council's financial services co-ordinator said council's capital works spending had slowed down to 62 per cent for the financial year, but they still aimed for 90 per cent.

He said while there had been volatility in the share market over the last two weeks due to the coronavirus, council's risk to volatility was "nil" as they invested in short-term deposits with guaranteed returns.

They also noted council had received $1.275 million from the Federal Government for bushfire relief, which council could spend at their discretion.

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