Issue - meetings

To receive and consider the attached report from Cabinet held on 14 July (recommendations to follow).

The purpose of the report by the Director of Finance and Resources (Section 151 Officer) is to obtain the Council's approval to enter into a framework agreement with the UK Municipal Bonds Agency (MBA). Entering in to the framework agreement is a pre-requisite for borrowing from the UK MBA. The framework agreement includes a guarantee under which the Council would be guaranteeing the borrowing of other local authorities. The guarantee is necessary to enable the UK MBA to lend to local authorities at rates below those offered by the Public Works Loans Board (PWLB). The Council's liability under the guarantee is limited to its proportion of the UK MBA's non-defaulting loans up to a sum equal to the Council's total borrowing from the UK MBA. In addition, the UK MBA will assess the credit worthiness of each local authority at the time of accession to the framework agreement, at the time of entry into a loan, and at least annually thereafter.

RECOMMENDED TO COUNCIL:

(a)                 That the Council enter into a framework agreement with the UK Municipal Bonds Agency;

(b)                 That the City Solicitor (Monitoring Officer) and the Director of Finance and Resources (Section 151 Officer) be given delegated authority to sign the Framework Agreement and the Certificate of Approval confirming that:

(1)     the Council has the power to enter into the Framework Agreement and to perform its obligations under it;

(2)     the Council has approved the entering into of the Framework Agreement and the proportional guarantee;

(3)     all the necessary authorisations have been obtained and decision making procedures followed and completed to enable the Council to enter into the Framework Agreement and the proportional guarantee.

RECOMMENDED TO COUNCIL:

(a)                 That the Council enter into a framework agreement with the UK Municipal Bonds Agency;

(b)                 That the City Solicitor (Monitoring Officer) and the Director of Finance and Resources (Section 151 Officer) be given delegated authority to sign the Framework Agreement and the Certificate of Approval confirming that:

(1)     the Council has the power to enter into the Framework Agreement and to perform its obligations under it;

(2)     the Council has approved the entering into of the Framework Agreement and the proportional guarantee;

(3)   all the necessary authorisations have been obtained and decision making procedures followed and completed to enable the Council to enter into the Framework Agreement and the proportional guarantee.