Issue - meetings

Report by the Chief Operating Officer

3.1       The Lead Member considered a report by the Chief Operating Officer.

DECISIONS

3.2       RESOLVED to (1) agree the Council becoming a shareholder and committing funding to an investment of £40,000 to the UK Municipal Bond Agency PLC; and 

(2) agree that further Members’ approval will be required to sign the Framework Agreement and its accompanying schedules including the joint and several guarantee. 

Reasons

3.3       There is no immediate plan or need to borrow through the UK MBA PLC, but as a shareholder the Council would be able to access preferential rates.

Report by the Chief Operating Officer

15.1     The Lead Member considered a report by the Chief Operating Officer.

DECISIONS

15.2     RESOLVED (1) to agree the level of Council participation and committing funding to an investment of up to £100,000 to the Municipal Bonds Agency (the Local Capital Finance Company Ltd);

(2) to note that the Cabinet approved participation and the amendments to the Treasury Management strategy on 29 June 2015; and

(3) to delegate authority to the Chief Finance Officer to take any action considered appropriate to give effect to or in consequence of recommendations 1 and 2  including determining the terms of and entering into any agreements considered necessary to be entered into including the Subscription Agreement.

Reasons

15.3       The Municipal Bonds Agency is an independent company with the sole aim of reducing financing costs for councils through arranging lending at competitive interest rates. The agency would be able to raise finance in bulk from the capital markets by issuing bonds and lending on to other local authorities.  Taking part in the setting up of the agency does not commit the Council to borrowing, but would give early access to potentially cheaper borrowing if required. 

15.4     There is an entry window now, which will not be open for too much longer, so we may not be able to reap the full benefits of European Investment Bank rates or bonds in the future, and the company is much more viable than previously thought due to the commitment of other councils.