Approval of UK Municipal Bond Agency; Framework Agreement and Joint and Several Guarantee (joint report of the Portfolio Holder Finance and the Interim S151 Chief Finance Officer enclosed)
(Please note that the appendix associated with this report is not for publication by virtue of Paragraph 5 (Information in respect of which a claim to legal professional privilege could be maintained in legal proceedings) in Part 1 of Schedule 12a of the Local Government Act 1972, and is therefore attached to this agenda as Item 12)
Consideration was given to the joint report of the Portfolio Holder for Finance and the Interim S151 Chief Finance Officer which sought approval for the Council to enter into the borrowing documents prepared by the UK Municipal Bonds Agency (the Agency).
The Agency required that local authorities borrowing from it entered into its Framework Agreement. The Agreement included an accession document confirming that the Council had the necessary approvals to sign the Agreement and a joint and several guarantee to those lending money to the Agency in respect of the borrowing of all other local authorities from the Agency. Entering into the Framework Agreement enabled the Council to access funding from the Agency as and when required.
The report set out the background to the Agency, key facets of the Framework Agreement and the advantages and disadvantages of entering into the Agreement, including an assessment of the risk that the Council would be called upon under the guarantee.
Members considered the
information provided. It was agreed
that the principles of the report would be discussed and there was
therefore no need for the meeting to go into private session to
consider Appendix 1 to the report specifically (exempt item –
UK Municipal Bonds Agency PLC, Documents Package for Local
RECOMMENDATIONS TO FULL COUNCIL:
a) To approve the Council’s entry into the Framework Agreement and its accompanying schedules including the joint and several guarantee;
b) That delegated authority is given to the Executive Director, Commercialisation as Section 151 Officer in consultation with the Portfolio Holder for Finance to agree amendments to the Framework Agreement as appropriate; and
c) That subject to due diligence and assessment of the legal and financial implications of the proposal, delegated authority be given to the Executive Director, Commercialisation as Section 151 Officer and the Executive Director, Strategy and Governance as Monitoring Officer to sign agreed final documents, as appropriate, on behalf of the Council.
(Other option considered:
· To note the report and not approve the recommendations.
Reasons for decision:
· To increase flexibility and availability of capital financing for future projects.)
(The Environmental Services Manager, the Community Representative for Parish Councillors and the Press left the meeting following consideration of the above item.)