Brisbane City Council will be breathing a sigh of relief, with confirmation a $1.2 billion loan it issued will be repaid.
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The council contributed $1.241 billion towards the creation of Queensland Urban Utilities in 2010.
Former treasurer Tim Nicholls was unable to sign off on the loan being paid back to the council before the state election, a spokeswoman told Fairfax Media last month.
However Queensland Treasurer Curtis Pitt has now confirmed QUU would pay back the $1.241 billion to the council and the body would be refinanced by the Queensland Treasury Corporation.
The repayment means Brisbane residents' rates are less likely to increase significantly next financial year.
The council said $790 million of the returned money would be used to pay down debt, with the rest to be invested in city projects.
The council will have a net debt of $1.632 billion - or $1411 per city resident - when it receives the money.
Lord Mayor Graham Quirk said the repayment would mean the council would save about $330 million in future interest costs over the next 10 years and it would allow the council to focus on "our core role of service delivery to the suburbs".
However the council - along with all other local governments in Queensland - is still waiting to find out if the federal government will provide less financial support when natural disasters hit.
If the government chooses to adopt the Productivity Commission recommendation, rate bills across the state could rise.