LGFA Report 2017

September 29, 2017

Click here to download our 2017 Annual Report.

LGFA Annual Report 2017

LGFA Report 2016

September 30, 2016

Click here to download our 2016 Annual Report.

LGFA Report 2015

September 30, 2015

Click here to download our 2015 Annual Report.

LGFA Report 2014

September 29, 2015

Click here to download our 2014 Annual Report.

Local Government Finance Authority pays $2m dividend to councils

October 23, 2014

Local Government Finance Authority Chief Executive Officer Paul Slater   Source:  Supplied

By:  GIUSEPPE TAURIELLO                              From:  The Advertiser,  October 21 2014               

The state’s local councils will share a record $2 million dividend from the profits earned by their financier, with a further $1.54 million made available for local government research and development projects.

The Local Government Finance Authority (LGFA) reported profit before tax of $5.12 million for the year to June, up from $4.35 million in 2013 and the highest level since 2008.

At the same time, the authority reported a record level of loans to councils of $626.4 million, up from $591.6 million.

LGFA chairman Tony Pederick said the strong result came despite strong competition within the banking industry.

“Loan activity with councils has been quite buoyant this year, particularly towards the end of the financial year,” he said.

“Despite strong competition from the banks and other financial institutions LGFA continued to write 100 per cent of the loan business and estimate our share of available deposits was in excess of 75 per cent.”

“With fixed-term lending rates in the low-to-mid 5 per cent range it provided excellent funding opportunities for councils and we anticipate that out lending to councils will continue to grow in this current market.”

The LGFA was established during the credit squeeze of the mid-1980s as a statutory borrowing and investment authority to provide councils with an alternative to the major banks.

Through the Local Government Research and Development Scheme, an income tax equivalent amount is paid to the State Government each year to fund research and development projects across the state.

This year’s $1.54 million contribution is up from $1.31 million in 2013.

Since the authority’s inception, it has paid $22 million into the research and development scheme, delivered $34 million of bonuses to councils and made grants of $3 million.

Recent projects to which the LGFA has contributed funds include the $13.2 million Port Lincoln Airport upgrade, the redevelopment of the Walkerville Civic and Community Centre and the $19.5 million Port Augusta Community and Sporting Hub which is due for completion later this month.

Local Government Association president David O’Loughlin said this year’s record bonus for councils reflected the authority’s strong level of profitability.

“Since its inception we estimate that the LGFA has saved Local Government at least $200 million from lower borrowing rates and better investment rates,” he said.

“This is a unique service that only exists in South Australia and is the envy of other local government jurisdictions across the country.”

LGFA News Issue 2 – March 2014

March 20, 2014

Click link below to download LGFA Newsletter Issue 2 – March 2014

https://www.lgfa.com.au/wp-content/uploads/2014/03/Newsletter-Issue-2-March-2014.pdf

 

 

 

 

 

LGFA News Issue 1 – November 2013

November 14, 2013

Click link below to download LGFA Newsletter Issue 1 – November 2013
https://www.lgfa.com.au/wp-content/uploads/2013/11/Newsletter-Issue-1-November-20133.pdf

“Councils reap benefits of authority’s success”

October 30, 2013

Article featured in “The Advertiser” 22 October 2013
COUNCILS REAP BENEFITS OF AUTHORITY’S SUCCESS
GIUSEPPE TAURIELLO

Councils reap benefits of authority's success

We have certainly encouraged councils towards floating-rate debt
instead of fixed-rate debt and they’ve benefited from lower short-term rates
PAUL SLATER

THE state’s local councils will share a $1.74 million dividend from the funds earned by their financier, the Local Government Finance Authority (LGFA).

The LGFA reported a pre-tax profit of $4.35 million for the 12 months to June, up from $3.77 million in 2012.

A $1.74 million bonus will be paid to local councils according to the level of business they hold with LGFA.

A further $1.3 million will be made available for local government research and development projects throughout the state.

LGFA chief executive Paul Slater said the statutory authority continued to provide 100 per cent of the lending to local councils.

“We’re up about $25-to-$30 million, we had record levels of deposits on our books and profit was above planned,” Mr Slater said.

“We don’t need great big margins to make a profit. We have small staff, small margins, small overheads.”

The LGFA was established during the credit squeeze of the mid-1980s as a statutory borrowing and investment authority to provide councils with an alternative to the major banks.

Since being established, it has paid $32 million in bonuses to councils, and $21 million to the State Government for local government research and development.

At the end of June, the organisation held a record level of loans worth more than $591 million, up from $581 million in June 2012.

Mr Slater expects lending activity to escalate in the year ahead, given the low interest rate environment.

“We really are set up and operate as a mutual operation, a mutual society,” he said. “We’ve got fantastic loyal support on the liabilities side of our balance sheet, which allows us to provide tremendous opportunities on the lending side.”

“The year ahead looks extremely good – the fact that interest rates are low has worked in our favour.”

“We have certainly encouraged councils towards floating-rate debt instead of fixed-rate debt and they’ve benefited from lower short-term rates.”

LGFA chairman Tony Pederick said the LGFA was committed to providing low-cost funding to the state’s councils.

“In 2012/13, councils were able to access relatively cheap funding to provide the myriad functions and services their communities now desire,” Mr Pederick said.

“Councils can be assured that with their continued support the LGFA will continue to provide fee-free, low-interest rate funding to our council clients.”

Local Government Association president David O’Loughlin said the LGFA was proof of the benefits of councils working together.

“The LGFA continues to provide an outstanding result for SA councils,” he said.

The LGFA will celebrate 30 years of operation in March.

 

 

 

 

 

Annual Report 2013

October 30, 2013

Click here to download our 2013 Annual Report.

Annual Report 2012

October 16, 2012

Click here to download our 2012 Annual Report.


(08) 8223 1550

Local Government Finance Authority of South Australia

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Adelaide SA 5000


PO Box 7050
Adelaide SA 5000


Phone (08) 8223 1550
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1800 188 045
Fax (08) 8223 6085
Email info@lgfa.com.au
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