RESOLVED:
1. That the Council enter into the Municipal Bond Agency Framework Agreement and Guarantee; and that authority be delegated to the Director of Finance and the Director of Legal, Democratic and Cultural Services to execute the Framework Agreement and Guarantee together with associated legal documentation;
2. That borrowing decisions be delegated to the Director of Finance in consultation with the Leader of the Council or the Cabinet Member for Business Services and Resident Experience.
Reasons for decisions:
It is anticipated that the Municipal Bond Agency will provide the council with an alternative source of borrowing capital funds at more favourable interest rates than those available from the PWLB.
The recently revised Treasury Management Strategy 2016/17 means that there is no immediate need to borrow from the Municipal Bond Agency. Until the Council borrows, there is no financial risk to the Council in joining the Municipal Bond Agency Framework and Guarantee. If the current interest rate situation alters, the Municipal Bond Agency option could be an attractive borrowing option.